Accounting outsourcing of accounting functions, payroll and personnel accounting

2023: The Russian accounting outsourcing market for the year grew by 27% to 14 billion rubles

The Russian accounting outsourcing market for 2023 showed significant growth, an increase of 27% compared to 2022, Smart Ranking reported in April 2024. The market volume reached 14 billion rubles, which reflects the increasing demand for outsourcing services in the context of economic turbulence.

According to Smart Ranking, the three leaders in terms of revenue included CDC, Severstal. Single Service Center "and Unicon Outsourcing. At the same time, the revenue of the Central Bank, the market leader, decreased by 4.3%, amounting to 3.8 billion rubles. Severstal is in second place. Center of the Unified Service "with revenue of 2.7 billion rubles, and on the third - Unicon Outsourcing with 1.3 billion rubles.

According to the company, the largest revenue increase was demonstrated by Bellerage Outsourcing and Consulting (+ 49.73%), My Business (+ 18.42%) and Finguru (+ 16.48%). These companies have been able to adapt to new market conditions and offer demanded services such as tax optimization and support for the IT industry.

According to Smart Ranking, the popularity of outsourcing in 2023 is explained by an increase in demand for payroll calculations, 1C support, labor protection and military accounting. Lyudmila Shusterova, Deputy General Director of Unicon Outsourcing, stressed that these services were most in demand among the company's customers.

The company "Button" also noted a high demand for services to support the IT industry, including accreditation from the Ministry of Digital Development and entry into the register of Russian software. These measures contribute to increasing the efficiency and competitiveness of the business in the context of changing legislation and economic situation.

According to analysts at Smart Ranking, the accounting outsourcing market will continue to grow moderately in the range of 10-20% in 2024. The main growth drivers will be automation of business processes and rapid adaptability to changes in legislation.^[1]

2017: Outsourcing providers ramp up revenue

The annual ranking of leading Russian companies in the field of outsourcing accounting functions, published in early July by the RAEX agency (Expert RA), indicates the withdrawal of this sector of the service market from the negative zone.^[2]

Thus, the total revenue of the largest outsourcing providers - participants in the current ranking in 2016 - increased by 7% to 7.8 billion rubles. In contrast to the figures of the previous two years, the nominal increase in revenue was able to overtake inflation, which in 2016, according to Rosstat, reached 5.4% (in 2015, the revenue growth of the ranking participants was 6% with inflation of 12.9%, and in 2014 - 10% and 11.4%, respectively). And only every fourth of the eighty participants in the current list ended the year with a decrease in revenue.

the further growth of outsourcing business processes can be the development digital economy declared as a priority at the highest level, as well as the progressive tightening of administration in the tax and accounting spheres," said an analyst at the RAEX agency (Expert RA). Vartan Hanferyan

The recovery of revenues from outsourcing accounting functions (accounting, payroll and personnel accounting) could have taken place more rapidly, but since its main client is still foreign companies operating in Russia, Western sanctions had a tangible impact on the dynamics of the development of this market. Another obstacle that still prevents the accelerated growth of accounting outsourcing is the unwillingness of Russian business to trust such a delicate sphere to an external contractor.

Another obstacle to the development of accounting outsourcing is the dominant opinion among potential customers about its high cost. Against the current idea of ​ ​ the high cost of transferring accounting functions to a row, a flexible provider pricing policy also works.

reform implemented by the state in the audit market may also contribute to a decrease in the cost of services of contract accountants. It is designed to reduce the volume of audits, which should entail a reduction in the number of audit companies. In this scenario, competition in the accounting services market will tighten - the flow of auditors here with extensive experience in tax and financial consulting is quite logical and predictable, "RAEX noted

Despite the factors hindering the development of the market, the number of Russian accounting outsourcing customers is growing from year to year. Almost all ranking companies interviewed by the agency speak about this.

The most notable contribution to the dynamics of the outsourcing provider market in the current ranking was made by the growth of income of its participants from the provision of accounting and tax accounting services. In 2016, revenue here increased by 7%, amounting to 4 billion rubles. (in 2015 - by 8%). The demand for these services is associated with a tightening of administration in the accounting and tax spheres.

At a faster pace in 2016, the total revenue of the ranking participants grew from the services of outsourcing wages and outsourcing personnel accounting and workflow. In these two sectors, it reached almost 1.875 billion rubles last year, and its growth - 22%. At the same time, revenue from the calculation of salaries amounted to 1.373 billion rubles. (increase - 17%), and income from personnel accounting and workflow - 501.2 million rubles. (increase - 41%). The demand for personnel record and workflow is still due to the increased attention of state inspections to personnel administration and its improvement.

In the negative zone were the income of the ranking participants from outsourcing services for preparing reporting under RAS and IFRS: in total in 2016 they decreased by 17% - to 714.7 million rubles. At the same time, the volume of revenue from IFRS reporting amounted to 493.1 million rubles. (minus 5% per year), and the volume of RAS reporting - 221.6 million rubles. (minus 31%).

fall in demand for IFRS reporting is a significant restriction on the access of Russian companies to foreign capital markets," believes Artem Zavertalyuk, partner of ADE Professional Solutions (A.D. Professional Solushns).

As for the sharply negative dynamics of the volume of services for preparing accounting reports according to national rules, the desire to save money during the crisis worked here - the client can order documentation under RAS not separately, but with comprehensive accounting and tax accounting. In the context of increased competition, the outsourcing provider can also report to the client as a bonus in general service.

However, outsourcers consider the drop in revenues from RAS reporting temporary, linking the growth prospects of these services with the rapid development of IT services and the further implementation of the state's requirements for legal entities to switch to electronic document management when communicating with tax authorities, as well as on the preparation of new quarterly 6-NDFL reports and monthly reports to the FIU.

Table. Top-20 ranking of the largest groups and companies in the field of outsourcing accounting functions in 2016

Source: RAEX (RA Expert) according to ranking participants

See also

• IT outsourcing (global market)
• IT outsourcing (Russian market)
• HRM
• Accounting systems
• Consulting, including management and personnel

Notes