Outsourced Accounting as a Solution for a Missing Accounting Manager

The Client’s Challenge

High turnover within an internal accounting team can result in additional recruitment and onboarding costs while also affecting the continuity of financial processes.

This was the situation faced by our client, a multinational company operating in Slovakia through its subsidiaries. Over the course of one year, the Accounting Manager position changed hands several times, while the company continued to struggle to fill the role on a stable basis.

The situation resulted in additional recruitment costs, repeated and time-consuming handovers, the absence of a stable point of contact for accounting and financial processes, and an increased risk of inconsistencies caused by frequent changes in accounting leadership.

Outsourced Accounting Instead of Repeated Recruitment

The client decided to pursue an alternative to repeatedly recruiting for the internal Accounting Manager position and transferred the designated agenda to BDO specialists.

As part of the cooperation, we assumed a broad range of accounting, reporting and selected tax responsibilities.

Coordination of monthly closings for the designated group entities, including preparation and posting of journal entries.

Methodological and legislative support for employees in Slovakia when addressing accounting matters.

Review and analysis of the group and local general ledgers to verify the accuracy of accounting entries.

Monitoring of accounts payable and accounts receivable.

Monthly variance analysis against budgets and forecasts in cooperation with the group finance team.

Consolidation of results into monthly reports.

Review of bookkeeping and asset transactions with a focus on accuracy and compliance with local requirements.

Acting on behalf of the company within the scope of the granted power of attorney and supporting the fulfilment of obligations towards local authorities.

Preparation of regular VAT returns, other filings as required and Intrastat reports.

Advisory on upcoming changes in tax and accounting regulations.

Preparation and filing of financial statements and preparation of the corporate income tax return.

How the Transition to Outsourced Accounting Worked

Based on the client’s requirements, we assembled a team that travelled abroad at short notice to take over the designated accounting responsibilities and become familiar with the group’s internal processes during an intensive three-day handover.

The transition also included training in the client’s internal accounting software, enabling our team to adapt to the existing technology environment and subsequently manage the agenda in line with local requirements.

The full designated agenda was taken over within one month. When setting up the processes, we also reflected the group’s requirements to ensure effective coordination between the Slovak subsidiaries and the group finance team.

Results of the Cooperation

The transition to an outsourced model provided the client with a more stable setup for its accounting and financial processes and removed the need to repeatedly recruit for a key internal role.

Reduced costs associated with internal and external accounting services.

Greater stability of the accounting agenda by reducing dependence on repeated turnover in a key position.

More consistent accounting and tax processes through closer integration of internal and outsourced support.

Removal of unjustified discrepancies between the group and local general ledgers, improving the accuracy of financial reporting.

The more stable process setup also allowed the client to devote greater attention to the further development of its business instead of repeatedly addressing staffing changes within the accounting function.

External accounting