Financial outsourcing implies the transfer of certain functions to an external provider who should ensure the delivery of top quality and uninterrupted services while guaranteeing protection of confidential data. How can the quality of future services, speed of work, supplier reliability and work ethics be assessed? What points are usually overlooked while negotiating contract terms and upon transfer of financial functions?

In our guide, you will find:

  • Criteria for evaluation of outsourcing providers
  • Recommendations for negotiations with potential partners
  • Recommendations for preparation of own team to work with an outsourcing provider
  • Concerns of users before switching to outsourcing and feedback on experience of use of outsourcing

Either individual areas of accounting such as, for example, payroll, accounting of payables and receivables, or all accounting and tax accounting, as well as management accounting are usually transferred to financial outsourcing. It should be noted that the outsourcing of financial services comes with a whole range of support services: support of tax inspections and audits, provision of updates on changes to current accounting and tax laws, support in liaising with counterparties on issues of provision of primary accounting documentation, etc.

It is important to understand that if a process is not described in outsourcing contracts, then the contractor will not be legally liable for such process even if the performance of such function seems obvious. It is also important to bear in mind that financial outsourcing is quite complex in terms of pricing. For the time being, there are no generally recognized methods determining the correctness of pricing so prices should be compared very carefully: the total fee offered by one outsourcing provider should not be compared with that of another, what should be compared is what constitutes this total fee, i.e. the scope of services. We will describe in more detail how to do just that.

This guide is first and foremost intended for top managers and department heads who are directly involved in the selection of suppliers.