Reasons why Danish companies choose to delegate accounting tasks to external parties for strategic purposes

usinesses in Denmark are willing to hire companies from other countries to help them with certain tasks. In 2014, 34% of these tasks involved accounting and finance. Even though this department deals with important financial information that needs to be kept private, it is actually growing faster than any other outsourced tasks in Denmark. This is because tasks that involve lots of transactions are easier to outsource than more complex and valuable tasks.

Accounting and finance tasks can be divided into two main groups: tasks that involve lots of transactions, and tasks that require more judgment and decision-making. When Danish companies look for an outsourced accounting provider, they usually choose one that has competitive pricing, a good track record, and knows the rules and regulations of Danish accounting well. It is also important for these companies to check the provider's reputation and work quality by asking for references from other customers.

Factors that motivate Danish companies to outsource their accounting and finance tasks strategically

Reducing expenses
Outsourcing finance and accounting has many advantages, but reducing costs is still the most important reason why companies do it. However, there are other reasons that are becoming more and more important, such as gaining access to skilled professionals and improving business processes.

The ability to obtain expertise and necessary tools
Companies in Denmark rely heavily on their outsourcing partners to help them streamline their financial and accounting procedures. It is particularly advantageous for outsourcing companies to have industry knowledge, since the main sectors in Denmark are industrial production and goods manufacturing.

Enhancing the efficiency of the process
Most Danish companies also want to improve their efficiency and standardize their processes. They expect their outsourcing partners to help them achieve this goal. Companies in Denmark are characterized by having specific criteria they use to measure improvement, including reliability, relevance, comparability, consistency and understandability.

Key strengths
Hiring a senior accountant in Denmark can cost approximately 4,000 EUR. However, if the same level of expertise is hired in nearby countries like Lithuania, the cost can be above 1,400 EUR. By outsourcing their finance and accounting services to countries with lower costs, Danish companies can significantly reduce their expenses. This allows businesses to focus on their key strengths while still maintaining quality accounting services at a lower cost.

The ability to adapt
By outsourcing their accounting services, business owners can avoid the burden of managing their accounting department. The accounting service provider can also adjust and expand their services to match the growth of the Danish company.