8 Reasons to outsource accounting, payroll and HR in Russia
Below we have outlined the most important reasons why companies of all sizes should consider outsourcing in Russia.
Outsourcing allows saving time which can be used to focus on core business. Managing internal accounting staff and department takes a lot of time, especially in Russia where the required paperwork is double that of what is needed in Europe. This time could be better spent on core business and development strategies.
Successful companies focus on their core business and strategies, and as a result, they outperform others and maintain sustainable and profitable growth.
Outsourcing of accounting, payroll and/or HR administration functions reduces costs due to the lower operation costs and economies of scales that outsourcing companies generally offer. Thanks to outsourcing, companies do not need to hire full-time staff for part-time tasks and thus minimize their lost productivity costs.
The processes applied by professional accounting firms are usually highly automated, which reduces the use of human labor and further decreases costs.
It is easy to expand and grow a business without having to worry about finding, hiring and training financial administration specialists, while at slower times, you can still cut down volumes and expenditures when needed. Also, the Russian Labor Code puts a heavy administrative burden on employers, meaning that non-compliance with the rules will put the employer at a disadvantage in its relations with both employees and authorities.
4. Best practices
Professional accounting firms employ a wide range of skilled specialists that apply best practices in working with customers. As a result, they gain a wealth of knowledge about
industries and operations generated from their interactions with customers. Laws are frequently changed in Russia, and these changes should be reflected in existing procedures and work processes.
Professional accounting firms are aware of any upcoming changes in the legislation and inform customers about the consequences and required actions.
5. Higher quality
Professional accountants can do better jobs. Accountants are hired by professional outsourcing companies because they have adequate knowledge of the Russian Tax Code and laws, as well sound experience and professional qualifications.
Accounting firms have better access to stateof-the-art technology, and their high level of automation means that they are more efficient and make fewer errors, while minimizing tax and other regulatory exposure.
6. Decreased fraud risk
Many international companies have suffered losses in Russia due to fraud or misuse of company’s assets by general directors and chief accountants. By outsourcing and dividing responsibilities, it is possible to protect shareholders’ interests and avoid misrepresentation of bookkeeping and misuse of company’s funds. Outsourcing also increases transparency and provides independence from local management.
7. Data security
Professional outsourcing companies employ skilled IT staff to support their operations and maintain high data security, which consists of on- and off-site servers, stable connectivity, nightly back-ups, disaster recovery plan as well as support desk. It is no longer allowed to manage and maintainpersonal data of Russian citizens in the database outside Russia without support of the local provider. Therefore, it is required to use reliable local solutions that professional outsourcing companies offer as in-house services or use a reliable third party provider.
When hiring an accounting firm, you are hiring the company, not a particular person that may leave, become ill or otherwise not be able to fully contribute. Outsourcing minimizes the impact of personnel turnover as professional accounting firms always have a back-up person and process in place. This is especially important in Russia where employees are required to give only 2 weeks’ notice before leaving their job.
We are Accountor , the largest accounting, payroll and HR administration service provider in Northern and Eastern Europe. We have offices in seven countries, with the latest tools and over 2,300 passionate people delivering better results for you. We are your ideal partner in accounting, HR & payroll and legal advisory services in Russia.
What can you expect from Accountor? To give you an idea, we have listed ten of the most important reasons for working with us:
- 70 Years of Success
- International Presence
- Full Expertise from One Source
- Key Account Management
- Our Customer Satisfaction Rate is 98.5%
- Proactive Approach
- Quality Assurance
- IT Security
- Free 1C Updates
- Professional Indemnity Insurance