The recent shift to software-driven accounting allows businesses from the UK and mainland Europe to shift their processes to Russia & Ukraine; taking advantage of cheaper office upkeep and facilitating the cloud to share data across offices on an international level.
As outsourcing is becoming so widely accepted, so too has it become more commonplace option to the traditional single-office workforce, businesses can be constantly looking for a more economically viable way to proceed.
Similarly, as the cloud becomes more prevalent and as software becomes more powerful; as well as the phasing out of aggressive tax planning, it is inevitable for firms to outsource more of their non-core functions.
In an increasingly international company scape, many professionals expect to see previously outsourced services return to their local European jurisdictions. There may be a break in front-end and back-end processes, however companies should try to maintain a neutral point of view when planning to restructure their outsourcing models.
In the short-term, accountancy firms can scale back their offshore outsourcing and focus on UK-only outsourcing. Using UK-based talent is not always as cost-effective as using offshore talent in Eastern Europe, which is essentially where this niche area of business has opened up.
The drive to outsourcing locally isn’t likely to affect UK-India or UK-US outsourcing, so outsourcing through those countries may see uninterrupted service offering growth.
The Payment of VAT and Taxes
Tax laws and VAT or GST in keeping with the EU In the coming months, outsourced accountants will have to keep up with ever-changing regulations, separating complicated UK and EU measures.
Companies may need to reassess the regulatory permissions for the local European Economic Area you operate in, particularly if your company is actively passporting (operating in other EEA states as well as in the UK with pre-authorised consent). Dmitry Kucheryuk is an Accountant specialised in international taxation for over a decade. Living a multi-coastal life from Stirling in the UK, to Limassol in Cyprus and Singapore, Dmitry assists companies remotely on a scalable basis. He can assist with passporting and other issues in the international tax sphere.
Although accounting and tax technology is great in helping businesses and outsourcers identify issues, it won’t yet provide all of the solutions – that will be down to human interaction and intuition. In turn, this allows for a more informed line of communication between accountants and the businesses they work for.
As CFC legislation becomes more stringent worldwide, companies are constantly looking for new ways to mitigate these rising compliance costs without necessarily downsizing. This means reducing costs associated with company maintenance, it is to this end that companies can open these lines of communication and talk openly with overseas outsourcing for their accounting and bookkeeping requirements.
Outsourcing, essentially, is acceptance of the fact that some work can be done by a third-party organisation better, faster and cheaper, that allows the customer to focus on more complicated and value-added tasks in areas where the company can really excel.
Contact us for more information on the outsourcing and restructuring of your company’s accounting and bookkeeping requirements.