AmCham Macedonia Fall 2015 (Issue 47) | Page 16

ANALYSIS Finance and Accounting Outsourcing Author: Srdjan Randjelovic, Director, KPMG Macedonia Since the global financial crisis, we have been witnessing that many local and international companies are under a sustained pressure to reduce costs as a way to improve profitability. One way to do this is by outsourcing some of the back office processes, such as finance and accounting, in order to lower costs and simultaneously deliver higher value to the business. In its publication “Strategic Visions on the Sourcing Market”, KPMG’s Shared Services and Outsourcing Institute argues that while cost reduction is the main reason for outsourcing, it unquestionably is not the only one. Other reasons include the benefit of access to more qualified talent and expertise by outsourcing certain back office processes. The availability of experienced professionals brings more efficient and effective results and improves the general performance of the company itself. The publication further elaborates that although the cost cutting goals through outsourcing have been achieved, the next generation of outsourcing contracts will need to focus on global process standardization and optimization. Historically, in Macedonia outsourcing of the accounting function has generally been used by smaller and/or individually owned companies which have not been able to afford an in-house accounting function. As regards larger multinationals with a local presence, there has been a recent trend for regrouping and establishing regional centers for support of the back office functions of the companies within the group, mainly driven by the pressure for cost cuttings. This regionalization may lead to the need for local accounting and compliance expertise in a number of jurisdictions, which may not be available to a regional center but may be obtained by outsourcing to local experts. 16   Fall 2015 Issue 47 6 Members Win National CSR Awards • Vitaminka won an award in the Employee Relations category • Makstil & EVN Makedonija won awards in the Ethical Management category • Komercijalna banka Skopje won an award in the Customer Relations category AND the award for Most Inventive Practice • Cementarnica USJE won an award in the Environmental Protection category • NOVA International Schools won an award in the Investing in the Community category