Danish companies are open to international outsourcing. In 2014, 34% of Business Process Outsourcing consisted of accounting and finance in Denmark. Although the finance department concerns highly sensitive information, it has become the fastest growing BPO segment in Denmark. The most popular are transactional-intensive operations because they are easier to outsource than higher value processes.
Accounting and finance can be divided into two groups: transactional-intensive operations and judgment-intensive operations. Danish companies usually choose outsourced accounting providers who have competitive pricing, proven track record and sound knowledge of Danish accounting rules and regulations. References of other customers are paramount factor Danish companies to check the provider’s reputation and work quality.
Strategic drivers for Danish companies to outsource accounting and finance
1. Cost reduction
Although more benefits come with BPO, cost reduction is still the most important driver to outsource finance and accounting. However, other drivers like access to skills and process improvement capabilities are increasing in importance.
2. Access to skills and resources
Danish companies are expecting their outsourcing vendor to improve their finance and accounting processes. Industry-specific knowledge is a big plus for outsourcing providers because the largest sectors in Denmark are industrial production and manufactured goods.
3. Improving the process performance
Improvement performance and standardization is another factor for Danish companies. Companies are expecting their providers to contribute to the improvement of processes. Danish companies define the following criteria: reliability, relevance, comparability, consistency, and understandability.
4. Core competencies
To employ an in-house senior accountant costs roughly around 4,000 EUR in Denmark. In nearshore destinations like Lithuania, the same level person can cost above 1,400 EUR. Nearshoring finance and accounting to lower cost environment countries can accomplish huge cost saving for Danish companies. While outsourcing accounting and keeping costs, businesses can focus on their core skills.
5. Flexibility
Owners of the companies eliminate the responsibility to manage the accounting department. The accounting company’s service scales in parallel with the Danish company’s growth.
Baltic Assist is a reliable accounting services provider for Danish companies with a proven track record. If you wish to have a free consultation about your business’s accounting services virtually or during the meeting in Copenhagen, don’t hesitate to contact us.