The service is addressed to companies performing construction contracts related to roads, bridges and buildings.  It is also available for contractors performing works in rivers and at wharves.

 

Accounting support of construction contract, usually called “contract economist service” in the industry exceeds the scope of traditional advisory or accounting services.  It includes stock counting and control, settlement and planning activities related to the contract performed by the commissioning client and its subcontractors. 

 

The service includes the following components: 

• co-building, update and performance control of the contract/project budget in cooperation with Contract/Project Manager

• inspection of invoices, bills and any liabilities for formal and accounting correctness and compliance with concluded contracts and recording of these documents divided into budget items in the financial and accounting system 

• issuing and recording sales invoices for the commissioning client in the financial and accounting system, issuing orders under the performed contract

• inspecting settlements with counterparties/subcontractors with regard to advance payments, payment deadlines, retained amounts, etc.

• preparing information regarding the value of work in progress and non-fixtures; in cooperation with Contract/Project Manager, preparing information about the percentage of completion and compliance with the schedule

• preparing the final contract report (the economic part) and settlement of the contract in cooperation with Contract/Project Manager

 

According to the Managing Director, the service involves internal control performed by independent and unbiased individuals, third-party employees.  Along with correct maintenance of accounting documentation of a contract/project, compliant with relevant procedures and concluded agreements, the commissioning client is protected from damage arising from unintentional or intentional acts (cooperation) of its employees (as we know, damages can be claimed from them to a limited extent).

 

Added value of outsourcing

 

Polish business people express growing interest in outsourcing, appreciating its potential benefits.  Entrusting less important tasks with specialized entities allows cost reduction, quality improvement and transfer of certain business risks to a third party. 

 

The cost reduction is not limited to labor expenses (the cost of outsourcing services is usually lower than payroll expenses). 

”When making a decision to use outsourcing, one must be aware of the substantial reduction in costs related to workplace organization (rooms, equipment), maintaining and development of employees’ qualifications (training), provision and maintenance of IT hardware, costs of licenses and their renewal. Costs of errors made by own employees or their hidden intentional acts to the detriment of the employer may constitute a material but underestimated cost item”, says Piotr Radź, the co-owner of Advisory-Accountant Group Poncyljusz and Radź.

 

Transferring the risk to the outsourcing firm arises from Article 471 of the Civil Code, pursuant to which it is fully liable for the damage arising from non-performance of the agreement.  Pursuant to Article 119 of the Labor Code, employee liability cannot exceed the amount of three-month remuneration, unless the damage has been intentional.  Therefore, outsourcing is less risky than using the services of own employees.  When taking over such risk, external entities usually protect themselves with appropriate third party liability insurance. 

 

Transfer of the quality-related risk grows in importance in relation to economic and financial aspects of business operations.  Entrusting the keeping of accounting records with a specialist firm is a typical example of outsourcing. The bookkeeping entity takes responsibility for the correctness of accounting and tax profit/loss calculation, for contacts with tax authorities and for tax inspections.

 

”Apart from cost reduction and simplified organizational structure compliant with Lean Management principle, the use of outsourcing, also beyond its standard scope, allows the entrepreneur focusing solely on business operations.  Outsourcing of accounting services provides businesses with new quality: full compliance with the law and binding procedures, reduced number of inspections and fines, improved management information”, concludes Krystyna Poncyljusz, the co-owner of Advisory-Accountant Group Poncyljusz and Radź.

 

Contact regarding the accounting and bookkeeping outsourcing, to include accounting support of projects/contracts:

Sebastian Goschorski

+48 536 920 208

kontakt_biznes@poczta.debet.pl

Firma Audytorsko-Księgowa, Advisory-Accountant Group Poncyljusz and Radź