External accounting provider

Basics

external accounting comprises in particular Financial accounting, the creation of financial statements and legally required declarations. A provider handles these tasks in an organisational capacity for the contracting company.

This includes the recording of business transactions, Account assignment, creation of Booking entries as well as the maintenance of the accounting systems.

Legal framework

The execution of ongoing bookkeeping work is legally regulated. A provider of external accounting services may only perform activities within the permitted scope. Tax advice or legal representation is regulated separately.

Systematic classification

• External accounting
• Financial accounting service providers
• Accounting service providers
• Accounting firm
• Proper bookkeeping

The term describes the organisational outsourcing of accounting tasks to an external provider.

Typical areas of responsibility

• Ongoing financial accounting
• Content alignment
• Creation of business management evaluations
• Preparation of annual financial statements
• Fulfilment of statutory reporting obligations

Typical procedure

1. Scope of work definition
2. Provision of relevant documents
3. Recording and Booking
4. Content coordination and evaluation
5. Submission of results

Practical relevance

In practice, external accounting service providers often work digitally and in a process-oriented manner. A clear division of tasks between the company and the provider is organisationally essential.

Typical sources of error

FAQ

Conclusion

An external accounting provider takes on financial accounting tasks within the legally permissible framework and must be clearly distinguished from tax consultancy.