Outsourcing versus in-house accounting and payroll – Case study

The company's finance department employed a total of five people who handled accounting for the corporate group, payroll processing and financial tasks. The managing director asked ICTEuropa to propose a restructuring of the finance department. The decision to involve consultancy was fundamentally justified by the tense atmosphere that had developed within the department and was also felt by the managing director, rather than by specific professional issues.

We conducted an accounting audit of the company and identified faulty accounting procedures and accounting risks arising from the lack of controls. The organisation did not have appropriate control mechanisms in place, and work was based on convention rather than regulated processes.

With ICTEuropa's consultant involvement, the collaboration began with mapping out accounting and financial tasks, processes and areas of responsibility. As part of the consultancy, we conducted an accounting audit of the company and identified faulty accounting procedures and accounting risks arising from the lack of controls.

Our consultant proposed optimal use of corporate tax incentives and a tax-efficient way of providing employee meals through the establishment of an in-house canteen.

We proposed streamlining financial and accounting processes and clearly demonstrated the rationale for outsourcing accounting and payroll processing.

ICTEuropa has regulated accounting, payroll and team lead processes, which are supported by a unique enterprise management system specifically created to support accounting and payroll tasks. The processes include numerous control points. For example, VAT return submissions are preceded by 3 control points where 19 aspects are examined. Monthly general ledger controls consist of 13 points, during which 25 aspects are examined.

ICTEuropa assigns two accountants, a team lead, a payroll processor and a payroll team lead to each partner. During company takeovers, the opening tasks, for which they have specific control methods, are handled by a separate opening accountant and opening team lead.

As a result of our advice, the company was able to save more than twenty million forints annually in taxes.

The company has remained a satisfied customer of ICTEuropa since then. Consultancy as a service element has been a permanent part of the successful partnership ever since.

As a result of outsourcing, the organisation now carries out financial tasks based on professional, regulated processes, which reduces accounting risks and ensures proper controls. In the case of one person, the knowledge base no longer starts and ends with a single employee, but rather an entire team supports the company.