Outsourcing Accounting Services in Estonia: 6 Key Benefits

Every Estonian company faces the same choice when it comes to bookkeeping: hire an in-house accountant, or outsource accounting to a specialised firm such as Magrat. Most companies choose outsourcing, because it delivers clear cost savings, greater flexibility and lower risk. Below, we walk through six reasons why Magrat’s clients prefer outsourcing accounting over hiring a full-time accountant.

Cost savings and avoiding hidden costs

Outsourced accounting is usually cheaper than hiring a full-time employee. You pay only for the volume of service you actually need, and you avoid payroll taxes, holiday pay, sick leave and insurance contributions. That gives you far more flexibility in managing your budget.
Hiring a full-time accountant also brings hidden costs — a workstation, equipment, software licences, office space and ongoing training. When you outsource, the accounting firm covers all of these costs instead of your company.

More flexibility in managing your workforce

Dismissing a full-time employee can involve a lengthy procedure and compensation payments. With an outsourced provider, you can end the contract faster and without extra costs, giving you far more flexibility in how you manage resources.
This flexibility matters even more if you manage your Estonian company remotely as an e-resident — see how e-Residency has already generated over €125 million for Estonia, and why a flexible accounting partner is essential for companies run from abroad. You can also scale the volume of service up or down as needed, supporting your company’s growth without having to hire new staff.

Professionalism, continuity and built-in backup

Magrat holds ERK Recognised Accounting Firm status (see tunnustatud.ee and our article on what ERK recognition actually means), so our specialists complete regular training and track changes in legislation. That reduces the likelihood of errors and gives you a consistently professional level of service. When needed, a Magrat accountant can consult a more experienced colleague — an option an in-house accountant usually doesn’t have.
Most Estonian companies employ only a single accountant, which raises business risk: if that one person goes on sick leave or leaves the company, your bookkeeping can grind to a halt. Working with Magrat, we provide a replacement immediately, so your accounting continues without interruption.
NB! When choosing an accounting partner, make sure it will actually deliver reliably — poor quality or delayed communication can cause you to miss procedural deadlines and the problems that follow.

Conclusion: is outsourcing right for your company?

Outsourcing accounting is worth considering for most Estonian companies, regardless of size — especially if you:

• want to avoid the fixed and hidden costs of a full-time employee;
• need the flexibility to scale service volume with the season or your company’s growth;
• want the certainty that your bookkeeping won’t stop because of sick leave, holidays or staff turnover.

Magrat provides accounting and tax services for companies of every size in Estonia. Take a look at our accounting plans and price list, or get in touch to find the right solution for your company.