Ukraine is a state with one of the most difficult tax systems. According to "Paying Taxes 2010" – a rating of the world tax systems that is led by World Bank, Ukraine in 2010 occupied 181 place from 183 concerning onerousness of tax system for taxpayers. Different categories of taxpayers pay about 147 taxes and dues every year. According to assessment of World Bank an average taxpayer should spend 736 hours per annum for business and tax accounting.
A situation also becomes complicated because in our country tax accounting system is not based on business accounting system. Besides, according to date of State Entrepreneurship Committee, 79 controlling organs function today. Almost all of them, in a varying degree use information of tax and financial reporting in their activity.
In such conditions, business and tax accounting can not be executed by one person, even if the matter is about enterprises of small and middle business. Solving of problems not only about accounting, but also elaboration of variants of taxation optimization needs attraction of high-quality specialist. Each of the team’s member, having unique experience, makes his own inestimable contribution in making of deliberate and considered decisions.
As a result, audit companies, which render services of accounting outsourcing, are able to provide more qualitative service to entrepreneurs then staff accountant of enterprise. Meanwhile, cost of outsourcing for a majority of enterprises of small and middle business is often lower then costs for salary and organization of workplace of one staff accountant.
It also should be admitted that according to art. 8 of the Law of Ukraine "On business accounting and financial reporting in Ukraine" business accounting can be entrusted only to audit firm or specialist, registered as natural person - entrepreneur. Accounting by “Accounting firms” is not provided by law. That is why, costs for payment of services in accounting namely by audit firm are undoubtedly referred to the costs, decreasing taxable profit.
And with it, many business owners prefer not to transfer accounting into outsourcing, but to hire specialists into company’s staff. It is connected, first of all, with the following factors:
Confidentiality. It is considered that staff accountant keeps financial information secrecy increasingly. Though, in reality audit companies have more legal guarantees of confidential information keeping. According to art. 19 of the Law of Ukraine “On auditing” an auditor has to keep in secrecy information, received due to rendering of auditing services. And the Law doesn’t envisage cases of disclosure of audit secrecy, as opposed to, for example, from bank secrecy.
Responsibility. It is considered that staff accountant refers to his obligations with more responsibility. And with it, according to current labor legislation, position of accountant doesn’t refer to a list of professions and positions, which have higher material responsibility. That is why, accountant, as vast majority of employees, are responsible before enterprise in the amount, not exceeded monthly earnings. As for audit firms, they carry responsibility for losses, inflicted to its counteragent, on the bases of the principles of economic legislation.
Efficiency. Notwithstanding the opinion, that audit companies process the requests of their clients more quickly, especially in the cases, when the clients need consultation concerning difficult issues. It is connected with the fact that is staff accountant is obliged to distribute time among current technical and analytical work (not often for benefit of the last one), in audit firm these functions are initially distributed among different employees.