Rusconsult24 - Financial Outsourcing Services in Russia

Increasing Efficiency and Profitability With Outsourcing Solutions for

Accounting and Financial Processes in Russia

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AGENDA

• Background: Legal Landscape in Russia & Operational Challenges

• Strategies to Increase Corporate Efficiency and Profitability

• Outsourced Solutions for Accounting and Financial Processes

• Summary

• Next Steps

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LEGAL LANDSCAPE IN RUSSIA AND OPERATIONAL CHALLENGES

Legal Landscape in Russia

• Russian laws and rules require a very document- and form driven bookkeeping and accounting

• Business facts are less important than proper documentation

• Up to 15 financial statements and reports need to be provided on a quarterly basis to authorities

• Depending on the corporate form, certain cash transactions may be subject to currency control and require comprehensive documentation


Operational Challenges Costs

• In-house accountants have to be paid also when not 100% utilized

• Payroll taxes, social security fees and payments to pension fund are due

• Work space, office furniture and computer have to be provided

• Costly information technology and state of the art bookkeeping software required

Time

• Managing and administrating in-house accounting staff requires time. Time which is lost to focus on the client.

• Language barrier between management and in-house accountant

Expertise

• Constantly qualification and improvement of skills of in-house accountants required

• Expertise in areas such as international trade, customs and tax law required


CORPORATE STRATEGIES TO INCREASE EFFICIENCY AND PROFITABILITY

Global Approach

Research by Accenture states that:

• Outsourcing is one of the best ways for companies to attain and sustain high performance.

• One of the fastest growing outsourcing areas is finance and accounting

• Nowadays, the benefits and characteristics of outsourcing fit well with the needs of a 21st century business.

• By outsourcing finance- and accounting functions many high performing companies tighten their focus to strategic priorities, improved efficiency, better management controls and introduction of new opportunities for continuous improvement.


Top 5 Outsourcing Objectives


12%

29%

35%

85%

91%

0% 20% 40% 60% 80% 100%

De-risk the Business

Achieve High Productivity

Improved Operational Quality

Reduced Costs

Focus on Core Activity

% Respondents

Source: Gartner Research

The Cost Advantage of Outsourcing In Russia

100%

50% 70%

In-houseAccounting Cost

OutsourcedAccounting Cost

AdditionalOutsourcingRelated Cost

Total OutsourcingRelated Cost


30 % savings

20%

Additionally to the cost advantage companies also experience the improvement of productivity and quality.

*Estimations by RUSCONSULT24

Key Benefits of Financial Outsourcing

• Reduced Costs

• Focusing on the customer rather than the administrative / backend functions brings boost in productivity

• Access to a team of specialists in the field of accounting and finance

• Outsourcer has more flexibility in the use of resources to meet varying client timetables.

• Due to its expertise, the outsourcer can better leverage technology to help gain efficiencies around traditional manual accounting processes.

• Outsourcing allows businesses to leverage the outsourcers expertise, best practices and efficiencies so that the management can focus on the customer and growing of the business.


OUTSOURCING SOLUTIONS FOR ACCOUNTING AND FINANCIAL PROCESSES

Outsourcing Solutions for Accounting and Financial Processes


Service Description

Payroll Service Calculation of payroll, payroll taxes, social security fees and payments to pension fund

Bookkeeping Service Creation of Acts and Invoices (Szhet-Faktura) Management of Accounts Receivable and Payable General Ledger Maintenance Preparation of documents for currency control Preparation of payments Monitoring of due invoices and reporting Bank Reconciliation Fixed Asset Management Tax Return Preparation

Accounting Service Provision of management reports (Income Statement, Balance Sheet, Cash Flow Statement)

Business Case - Billing Process


After conclusion of the contract our client scans the agreement and sends it per email to our bookkeeper. Based on the details of the contract, our bookkeeper will prepare the additionally required documents, both, the Act and the Invoice (Szhet-Faktura). Our bookkeeper will then send the documents to our client.

Upon full delivery of the products to it’s customer, our clients hands over Act and Invoice to the customer to collect signature. Upon Act and Invoice are signed, our client scans both documents and sends them per email to our bookkeeper. Upon receipt our bookkeeper will reflect the expected payment in the bookkeeping system “1C”. During the following days the bookkeeper will monitor the incoming payments in the bank account of the company. The bookkeeper will send our client regular reports about open, received and overdue payments.

Our client contacts customers with overdue payments itself and requests timely payment. However, it would be possible to outsource this process to us as well.

Business Case - Payment Process


Upon our client had received it’s product from his provider, he will sign Act and Invoice. To trigger the payment for products our client scans Contract, Act and Invoice and sends it to our bookkeeper. Our bookkeeper reflects the transaction in the bookkeeping system “1C” and prepares the payment in the banking client.

Our bookkeeper informs then our client by email about the prepared transaction. Our client logs into the banking client, review the transaction and releases it.

Summary

• Outsourcing financial and accounting functions will lead to significant cost savings and boost of productivity as the management can focus on the client and growing of the business.

• Due to the outsourcing of a process, this process evolves from a internal back-office function to a vital customer-service relationship between the business and the outsourcing service provider.

• The increased process rigor, consistent reporting and metrics-based continuous improvements typically result in better service.

• The functional excellence of the outsourcing service provider and the tight partnership with the business, combined with commitment, accountability and visibility, lead to continuous improvement of the businesses performance.


Getting Started

1. Contact us to discuss your business needs and how we can help improve your company’s profitability and service with our financial outsourcing solutions.

2. Within two business days we will send you a proposal.

3. Upon your acceptance we will arrange for meetings to agree on the organization of the transition process, to take over the financial functions that shall be outsourced.


Who We Are

• We are a German service provider and consulting company based in Moscow, Russia.

• We are the One-Stop-Shop for foreign companies planning to establish and develop their business in Russia or wanting to make their internal administrative operations more efficient and profitable.

• We advise and service our clients before, during and after business start-up in Russia.

• We are also a outsourcing service provider. We help our clients to fulfill their daily business administrations, like payroll, bookkeeping, accounting or tax reporting.

• We also help finding office- and warehouse space and professional human resources.


We’d Love To Hear From You

Michael Haase

Phone RU: +7 (968) 521 03 06

Phone DE: +49 (6202) 578 94 99

Mail: [email protected]

Visit Us @ www.rusconsult24.com

RUSCONSULT24 – Kolodezny Pereulok 14, Office 608, 107076 Moscow, Russia

Contact us and find out how our outsourcing solutions can help to increase your company’s efficiency and profitability.

THANK YOU FOR YOUR ATTENTION!

WE ARE LOOKING FORWARD WORKING WITH YOU.

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