High employee turnover in an internal accounting team not only leads to increased time and financial costs for recruiting and onboarding new employees, but it can also negatively affect the overall financial stability of a company. A practical solution to such challenges may be outsourcing accounting services.

 

This was exactly the situation faced by one of our clients – a multinational company operating in Slovakia through its subsidiaries – which had been struggling long-term to fill the position of Accounting Manager. Over the course of a year, the company experienced several replacements in this role while trying to find a suitable candidate.

 

The turnover in the accounting team has had a negative impact on the business:

• Additional recruitment costs

• Time-consuming, repeated handovers of responsibilities

• Absence of a stable point of contact for accounting and financial processes

• Risk of non-compliance due to frequent changes in accounting leadership

Outsourced Accounting as a Solution to Team Instability

Given the above, the company decided to take a different route: instead of continuing to search for a replacement, they entrusted the entire accounting agenda to our outsourced accounting experts. As part of our collaboration, we provided a comprehensive accounting service package, including:

 

• Coordination of monthly closings for the group’s assigned entities and preparation/posting of journal entries

• Providing methodological and legislative support for staff within Slovakia to be able to properly deal with accounting issues

• Controls and analysis of both group and local general ledgers to ensure accuracy of entries

• Monitoring of payables and receivables

• Monthly variance analysis versus budget and forecasts in cooperation with the group finance team

• Consolidation of results into monthly reports

• Oversight of proper bookkeeping and asset transactions to ensure accuracy and legal compliance

• Acting on behalf of the company under power of attorney to ensure fulfillment of obligations towards local regulators

• Preparation of regular VAT returns and other required filings, including Intrastat reports

• Advisory on upcoming changes in tax and accounting regulations

• Preparation and filing of financial statements and corporate income tax returns

 

How Did the Transition to Outsourced Accounting Work?


Based on the client’s request, we assembled a team that traveled abroad on short notice and took over full responsibility for the designated accounting tasks within three days. This included ensuring compliance with local regulations. The team also completed training in the client’s internal accounting software, adapting fully to their system environment.

 

 

Within just one month, our team successfully assumed full control of the accounting agenda, ensuring a smooth transition without disrupting financial operations. We also made sure the accounting processes aligned with group needs, ensuring optimal integration and coordination between subsidiaries and the group finance team.

 

What Were the Key Outcomes of Our Collaboration?

The proof of successful cooperation was not only the improvement of financial processes, but also the satisfaction of the client, who could fully focus on the growth of his business. 

• reduce the cost of internal and external accounting services

• eliminate the problem of turnover of key staff, which has contributed to the stability of financial outputs

• streamline and consolidate accounting and tax processes by merging internal and external accounting, thus achieving greater clarity and consistency.

• Eliminate unjustified inconsistencies between the group and local general ledger, thereby ensuring greater accuracy in financial reporting

Is Outsourced Accounting the Right Solution for You?

If you're considering outsourcing your accounting and are looking for a reliable partner to help optimize your processes, reduce costs, and ensure full regulatory compliance, don’t hesitate to reach out via the contact form at the link below.