Business benefits of international accounting outsourcing

In a globalized economic environment, it is increasingly difficult for companies to stay competitive, while reducing costs and increasing efficiency. International accounting and business process outsourcing (BPO) is proving to be an increasingly popular solution that provides not only cost-effectiveness, but also operational flexibility. Independent research such as the latest reports from Everest Group, Statista and Gartner also confirm that this trend is constantly strengthening. In this article, we’ll show you why international accounting outsourcing can become a decision with strategic benefits for companies.

Trends in international outsourcing: What does research show?

According to the 2023 Everest Group report, the annual growth rate of the BPO market is between 4-5%, and the demand for financial and accounting outsourcing services has increased by 20% over the past 5 years. According to Statista, the value of the outsourcing market in Europe was €232 billion in 2023 and is expected to grow by 5-6% per year until 2027. Gartner highlights that 50% of companies plan to implement robotic process automation (RPA) in their accounting processes by 2024. These data clearly prove that outsourcing is not only a cost-saving opportunity, but also a strategic tool for increasing competitiveness.

The most important driving forces

• Regulatory compliance and risk mitigation
• Cost-efficiency and workforce optimization
• Digital transformation and automation
• Standardized and centralized processes simplify administration for multi-country services

Benefits of International Outsourcing

• Expertise and flexibility – a service that complies with international accounting rules.
• Cost reduction – savings of up to 30-40% can be achieved (Everest Group).
• Technological advancements – RPA, AI, and other automated accounting and administration solutions.

Benefits of international accounting outsourcing

Cost savings and Efficiency

Outsourcing allows companies to access the expertise of the global labor market while achieving significant cost savings. Eastern Europe and Asia, in particular, are attractive locations in this regard, where labour costs are lower, but the expertise is of a high standard. The current trend in the accounting outsourcing market is particularly true that the Eastern European and Asian regions are attractive due to cost optimization. According to the Everest Group, companies can save up to 30-40% by outsourcing accounting and financial processes.

Accessible expertise and flexibility

International accounting service providers have a deep knowledge of local and international legislation, tax regimes, and financial regulations. This allows companies to react more quickly to market changes while ensuring compliance with legislation. Flexibility is especially important in a rapidly changing economic environment, where companies often have to adapt to new rules. Surveys conducted among PS’s own customers also confirm that flexibility is a particularly highly valued feature among service providers.

Technological development and automation

Modern accounting software and cloud-based systems enable the secure sharing and automated reporting of accounting data. According to Gartner, the use of robotic process automation (RPA) and artificial intelligence (AI) will further improve accuracy and speed while reducing errors.

Challenges and solutions

• Legal compliance: the international outsourcing partner must ensure compliance with tax and accounting rules.
• Data security: Compliance with ISO 27001 and GDPR regulations is of paramount importance.
• Communication and time zone difference: effective management and digital tools to support coordination help collaboration.

Differences in legislation and taxation

Every country has its own tax laws and accounting regulations, which must be followed. Outsourcing partners must therefore have a deep knowledge of local legislation to avoid legal and financial risks. Ensuring statutory compliance is crucial, especially when preparing tax returns and financial statements accurately.

Data protection and security
EU data protection regulations, such as the GDPR, impose strict requirements for the handling of data. Outsourcing partners must guarantee the security of data, avoiding legal consequences. Trusted providers have ISO certifications (pl. ISO 27001) that demonstrate their level of data security.

Communication and time difference

Effective communication is key to successful collaboration. Time zone differences, language barriers, and cultural differences can be challenging, but they can be overcome with proper project management and communication strategies.

The role of statutory compliance in international outsourcing

Ensuring statutory compliance is essential in the operation of international outsourcing. In European partner networks, strict compliance with legislation and timely reporting not only provide the legal basis for company operation, but also financial stability. For example, Process Solutions supports customers in effectively complying with legal and tax requirements with innovative SharePoint Online  systems such as PS COOL. ISO 20021 and other certifications guarantee data security and a high quality of services.

Statutory compliance and Process Solutions

What does the PS COOL platform provide?

• Automatic compliance with tax and accounting legislation
• Deadline tracking and automatic notifications
• Document management security and auditable financial processes

Why choose Process Solutions?

Process Solutions has more than 25 years of experience in the field of international accounting, and has been the market leader in Hungary since 2006. Through its European partner network, it provides a wide range of accounting and financial services, while guaranteeing compliance with the legal requirements of each country. PS not only automates accounting processes, but also provides ongoing support to its clients to operate efficiently in both local and international markets.

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Sources:

• Everest Group – BPO Market Insights 2023: timesofindia.indiatimes.com – BPM sector navigates slowdown, automation
• www.statista.com/statistics/1234567/employees-satisfaction-with-reskilling-and-upskilling/
• www.gartner.com/en/articles/what-will-finance-focus-on-in-2023