Outsource financial accounting denotes the organisational transfer of ongoing Financial accounting to an external service provider within the scope permitted by law.
Basics
When outsourcing financial accounting, an external provider takes over tasks such as recording business transactions, Account assignment, creation of Booking entries, maintenance of main and subsidiary ledgers as well as account reconciliations.
Organisational outsourcing concerns the performance of activities. Responsibility for the completeness and accuracy of accounting records remains with the company.
Legal framework
The performance of ongoing bookkeeping work is regulated by law. External service providers may only perform activities within the permissible scope. Tax advice or legal representation is regulated separately.
Systematic classification
- External accounting
- Financial accounting service providers
- Accounting providers
- Double-entry bookkeeping
- Prepare year-end accounts
Outsourcing financial accounting is an organisational decision within external accounting.
Typical outsourcing tasks
- Live booking of business transactions
- Reconciliation of debtor and creditor accounts
- Maintenance of main and subsidiary ledgers
- Creation of business management evaluations
- Preparatory activities for the annual financial statements
Typical procedure
- Defining responsibilities and processes
- Provision of accounting records
- Recording, accounting, and booking
- Voting and plausibility check
- Provision of evaluations
Practical relevance
In practice, collaboration frequently takes place via digital interfaces and standardised processes. Clear responsibilities as well as reliable and complete data transmission are essential.
Typical sources of error
- Incomplete or delayed documents
- Unclear definition of tasks and responsibilities
- Lack of coordination in account clarifications
FAQ
Is outsourcing financial accounting the same as tax consultancy?
No. Outsourcing concerns ongoing bookkeeping tasks. Tax advice is regulated separately.
Does the company remain liable?
Yes. Even when carried out externally, the company remains responsible, particularly for the proper keeping of records.
Conclusion
Outsourcing financial accounting means the organisational transfer of ongoing bookkeeping to an external service provider. The responsibility for the correctness of the bookkeeping remains with the company.
Brasser Accounting Solutions GmbH is a specialised accounting service provider and part of a corporate group with Quint GmbH (tax consultancy/auditing) and Service Place Årjäng AB (Swedish tax office). BAS exclusively performs services according to § 6 No. 3 and 4 StBerG and does not provide tax or legal advice.
