Organization of accounting depends on the “size” of the company (number of transactions, employees, fixed assets), as well as on the requirements of the company’s management.
A company that conducts a large number of transactions usually needs an accountant – an employee who is located on the company’s territory. If necessary, an outsourcing accountant can be engaged to perform certain actions (for example, for payroll accounting).
If the company is small, has a small number of operations and the management has knowledge in the field of accounting, then certain actions can be performed by the manager of the company. In this case, the external service accountant may also be involved in certain activities (such as checking, drafting, preparing reports and declarations).
If the management of the company does not require daily contact with the accountant and the head of the company has decided to outsource accounting, then the head of the company concludes a written agreement with an external accountant, which prescribes the accounting procedure, rights, obligations, and responsibilities of the parties.