Accounting Outsourcing in Russia
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Accounting Outsourcing in Russia is the outsourcing of internal accounting and tax accounting to a specialized, external accounting service provider. Accounting, especially in Russia, is above all a question of trust. A large number of tax regulations and regulations make bookkeeping in Russia very complicated and ensure that an outsourcing can contribute to a considerable relief for a company. What does this mean in concrete terms, what is to be taken into account and what are the advantages?
For you in Russia!
Are you planning to outsource your bookkeeping in Russia or would like to change your current provider? We would be pleased to support you with our expertise and knowledge.
Accounting Outsourcing in Russia - Inhouse accounting or outsourcing?
Hardly any other area within a company provides such comprehensive insights as the accounting department. The order and earnings situation as well as the financial situation are only the most obvious points. The keeping of the commercial books is about highly confidential data, which provides the viewer with direct information about all relevant internal and external processes of a company. Accordingly, accounting is above all a question of trust. On the one hand, it is a matter of trust in competence, conscientiousness and compliance with the law, and on the other hand, it is a matter of loyalty and discretion of the responsible accountants. Therefore, not only the specifics and characteristics of Russian accounting represent a challenge, but also the selection of suitable employees who perform them properly.
Irrespective of whether in Russia or elsewhere in the world, in-house accounting often involves various efficiency problems. The work of the accounting department is usually not spread out evenly over the year, but increases on certain dates, usually at the end of the month/quarter or year, and then decreases again shortly after preparation of the respective financial statements. Especially in the accounting departments of small and medium-sized companies, problems often arise in connection with illness, vacation or dismissal of an accountant when it comes to compensating for such a failure.
As a result, foreign companies that have their own branch office or subsidiary in Russia should consider the question of whether internal accounting and, at the same time, the employment of their own accountants as well as dealing with local laws are necessary for the business venture in Russia. Many companies therefore choose to outsource.
As a starting point for outsourcing, in principle any time is possible. For organizational reasons, however, it is advisable to plan the entire outsourcing process some time in advance and then hand it over to the external accounting service provider on a specific key date, ideally after the quarterly or annual financial statements, in close coordination with the external accounting service provider.
Why to outsource accounting in Russia?
Especially in Russia there are numerous arguments in favour of outsourcing accounting to an external provider. This is not only about saving financial resources, but also about reducing risks and ensuring full transparency and control of the Russian business through the parent company.
Benefits of accounting outsourcing
Reduction of personnel and rental costs:
In addition to direct wage costs, the Russian company is able to avoid the costs of recruiting, further training, insurance and social security contributions, vacation, illness and penalties for errors committed by the accountant. Furthermore, there are no expenses for premises that are needed for an internal accounting department, i. e. workstations and archives.
Reduction of hardware and software costs:
The acquisition and maintenance costs for hardware and software which are necessary for proper accounting are eliminated. These include: technical equipment, accounting programs and licensed software for reporting to the Russian authorities, as well as IT security and back-ups to protect sensitive data from cybercrime.
Transfer of liability:
In addition to the cost aspect, the limitation of liability risk also plays a central role in accounting outsourcing. This refers to the risk of incorrect accounting and the related penalties. If applicable law is violated or deadlines are not met, the external service provider takes over the liability.
Control and monitoring function:
The transfer of accountancy to an external service provider means that the parent company has complete control and transparency with regard to business activities. Regular reporting in accordance with individual requirements or international standards can be used to effectively prevent abuse and permanently close security gaps.
For whom is the outsourcing of accounting interesting in Russia?
Basically, the outsourcing of accounting can bring significant advantages for most small and medium-sized companies in Russia. This applies not only to those companies that are expanding into the Russian market and want to ensure clear structures and cross-national comparability from the outset, but also to those that have been active in Russia for many years.
Our services in the field of accounting outsourcing in Russia:
We are happy to support you with competence and expertise in outsourcing your bookkeeping in Russia. At your request, we will take over the complete bookkeeping of your branch in Russia, irrespective of the legal form and location. Our range of services covers:
Set-up and management of complete accounting according to Russian standards
Posting of all daily business transactions (incoming invoices/outgoing invoices) and preparation of payment media
Preparation and submission of tax returns and delivery of required reports to the respective Russian authorities
Preparation and submission of quarterly and annual financial statements, preparation and filing of accounting and tax registers
Management of the complete payroll and personnel accounting as well as personnel administration including preparation and submission of all required reports to the responsible authorities
Preparation of internal instructions on employment, reimbursement of cash expenses, other remuneration, bonuses, vacation, dismissals, business trips (except for business travel reports, which is always the responsibility of the respective traveler)
Online bank account management: preparation of bank transfer for salary and tax payments, as well as for all other bank payments, international currency transactions and other relevant banking documents.
Contact person in German language for you on site in Russia
We are also happy to advise you on current issues in local and international accounting and taxation. All our accountants speak German and/or English, besides Russian, and have several years of experience.
Do you have any questions regarding accounting outsourcing in Russia? Do not hesitate and contact us. Please feel free to send us an e-mail, give us a call or make an appointment at one of our offices in Moscow, St. Petersburg or Vienna.
Further information on the outsourcing of bookkeeping in Russia as well as on numerous other topics relating to the Russian economy can be found in the publications section or on our Russia Economy blog.
Business Set-Up, accounting and reporting in Russia
Ausserer & Consultants is an international tax and accounting company based in Moscow, St. Petersburg and Vienna. Since our foundation in 2012, we have made it our mission to support small and medium-sized companies in local accounting including tax returns, reporting, business Set-Up and expansion in Russia. We also advise on individual questions regarding the Russian market and support our clients at all times.