Accounting Services for Medium-Sized Businesses

A medium-sized business – what are its characteristics?

In the colloquial sense, numerous firms are considered medium-sized businesses as distinct from large multinationals. However, according to the definition contained in Annex I to the Commission Regulation (EU) No 651/2014 of 17 June 2014, a medium-sized entrepreneur is one that:

• employed an annual average of fewer than 250 employees and
• had an annual net turnover from the sale of goods, products and services as well as financial operations not exceeding the PLN equivalent of EUR 50 million or
• the total of assets of its balance sheet prepared at the end of one of these years did not exceed the PLN equivalent of EUR 43 million.

According to the above definition, a business employing 50-250 employees and having an annual turnover of EUR 10-50 million will be officially classified as a medium-sized business, while colloquially, it will probably be referred to as a large enterprise.

The most important accounting challenges in a medium-sized business

Medium-sized enterprises are entities often characterised by an advanced organisational culture, having highly complex tasks, requirements and needs, and implementing plenty of modern practices, also in the field of HR support and management. They approach a comprehensive management of processes with close attention and expect greater software support.

Accounting for a medium-sized business can be complicated, especially since a medium-sized enterprise most often deals with hundreds or even thousands of accounting documents per month and, what is more, makes considerable outlays on investments, development and hiring employees.

The experience of our clients and industry best practices confirm that such a business should either build an in-house accounting department suitable for the scale of its enterprise or opt for cooperation with an accounting firm experienced in providing services for entities of a similar size. It is even better if the accounting firm serves quite a large group of medium-sized business and some large companies.

At MDDP Outsourcing, we provide services to numerous medium-sized businesses – both those officially defined as such and those which are casually perceived as medium-sized enterprises. We are aware of their expectations, regardless of whether they are manufacturing or service-based businesses. We support them with a wide range of services:

• comprehensive accounting services based on the MDDP Outsourcing system or the Client’s system (depending on which of them enables the most optimal attainment of the enterprise’s goals);
• tax advisory services;
• reporting to shareholders, partners and investors;
• HR and payroll services;
• access to modern systems such as electronic document workflow, electronic employee files and many others – ready for configuration without lengthy deployment, scalable and thus prepared to grow together with the organisation.

Accounting services for medium-sized enterprises available for quick implementation

At the same time, it should be noted that in medium-sized enterprises, there is no more space and time for experiments or keeping accounting records in an amateurish way, as it may sometimes be the case in micro-enterprises. The complexity level, the amounts of investment outlays and costs, as well as the scale of taxes paid, require practical knowledge of processes and the implementation of procedures that will be relevant to the size of a given company or partnership.

Having provided services to hundreds of entities, including companies listed on the Warsaw Stock Exchange or the NC market and reporting to international groups, we have had the opportunity to develop appropriate action plans, which our clients can take advantage of. Most importantly, the economic events that crop up are not ones we are encountering for the first time. As we deliver services also to large businesses, where, statistically, accounting is even more complex, we can offer excellent assistance to rapidly developing enterprises and, thanks to well-kept accounting records, support their further growth.

All this means that collaboration with the MDDP Outsourcing accounting offices (in Warsaw or Katowice) can be just as effective, and it often has a number of advantages over working with your own accounting team.