Accounting outsourcing for large enterprises
The Bulgarian legislation considers for large enterprises, enterprises that as of December 31 of the current calendar year exceed at least two of the following indicators: book value of assets – BGN 38,000,000; net sales revenues – BGN 76,000,000; average number of staff for the reporting period – 250 people. They often have own accounting department. In turn, it may consist of different units in depending on the size, divisions and activities of the company: commodity unit, financial and accounting, payments to staff, stocks, capital assets, tax and excise unit, etc.
Recently, however, there has been a steady trend worldwide. Many large companies transfer their accounting services to the system the so-called “outsourcing” (from the English: certain functions are given to an external company, in this case the accounting service is handed over to an accounting firm (company)).
Accounting outsourcing has serious benefits, including for large companies. The main advantage is that the contractual payment through certain time intervals for the services of a professional accounting firm is significantly less than the cost of maintaining one’s own accounting departments.
The main, and often the only argument for refusing to outsource and maintaining its own accounting departments is keeping company secrets. But given that this is a motive mainly for companies that often develop suspicious operations in the “gray” sector, it can be safely ignored of those who hold on to their reputation, authority, and honorable name in the respective business environment.
Accounting outsourcing for small and medium business
In Bulgaria, the law defines as medium-sized enterprises those that as of 31 December of the current calendar year shall not exceed at least two of the following indicators: book value of the assets – BGN 38,000,000; net sales revenues – BGN 76,000,000; average number of staff for the reporting period – 250 people. In the case of small enterprises, two of the following are not exceeded indicators: book value of assets – BGN 8,000,000; net income from sales – BGN 16,000,000; average number of staff for the reporting period – 50 people, and for micro-enterprises – book value of assets – BGN 700,000, net sales revenues – BGN 1,400,000, and average number of staff for reporting period – 10 people.
Accounting services for small and medium-sized businesses, in contrast to that of large enterprises, represents a reduced volume of accounting. It has more rational nature – not so large-scale, but still it overlaps all necessary and significant accounting activities.
This apparent predictability of accounting services in the small and medium business, however, often misleads owners of small, medium and microenterprises. Sometimes they start accounting on their own in order to save on costs for this activity. But here it must be borne in mind the important fact that the owner is personally responsible for the drawn up reports, data in tax returns, etc. For a non-professional in accounting area this activity is seriously hampered. The risk of inadvertently filling in incorrect data in the reporting forms to the state, is quite large and is accompanied by all the unwanted sanctions consequences.
Due to the fact that the managers of a business are engaged in its development and usually do not have the time and sufficient accounting knowledge to keep company accounting properly, many of them willingly switch to accounting outsourcing and enter into contracts with specialized companies that provide correct accounting services, even remotely when available necessary.
For its part, the accounting firm usually realizes not only accounting, but provides to the enterprises it serves consultations with a wide range of specialists. In these cases, the price for the services of a professional accountant becomes immeasurably lower than the benefits to the business, because those in power can pay more attention to its development.