Secondment is one of the most popular trends within accounting outsourcing. Employees of the outsourcing company are seconded directly to the client's office for an agreed period of time to perform certain tasks. The client is responsible for controlling the quality of the specialists' performance.
When is secondment required?
- When opportunities for hiring new employees in the accounting department are limited
- When temporary replacements for employees are required due to vacations, business trips, etc.
- When the company needs time to find a new Chief Accountant or a new member of the accounting staff
- When temporary projects need to be implemented, e.g. for loading large amounts of data when transferring accounting records from one accounting system/software to another, or for recovering accounting data.
Seconded employees can be involved in any areas of financial or tax accounting for the performance of daily tasks, preparation of the company's current accounting records, preparation of primary documents and analytical accounting, recovery of financial and tax accounting.
Previous examples of secondment and the advantages they’ve provided:
Provision of a seconded employee to an investment company specializing in trading securities to perform the Chief Accountant's duties while he/she is on an extended vacation. Advantages - saves time and effort involved in a search for a qualified candidate, and provides continuity of accounting services.
Provision of a three member team to an international trading and production engaged in an employee search to perform the following jobs: allocating and accounting of administrative expenses, recognition and allocation of VAT by types of administrative expenses, accounting for bank operations, and recovery of registers for previous periods. Advantages - continuity of financial and tax accounting maintenance, timely presentation of financial statements, and recovery of accounting data.
Provision of two seconded employees to a large international leasing company to prepare current financial and tax accounts while it searched for a Chief Accountant. Advantages - timely presentation of accounts.
What are the advantages of secondment?
It allows the accounting department to continue its work.
High quality of work performed by specialists.
Reduction of costs related to the recruitment of full-time staff.
No additional staff required.
Rational use of internal personnel.