The Cost of Accounting Information System in Conditions of Slovak Enterprises

Abstract

Enterprises can keep accounting by using of different information systems. The first option is bookkeeping by internal information systems; the other is to use so-called outsourcing. This method is currently modern trend in the provision of accounting, since it can lead to significant cost savings enterprise. The most commonly use of outsourcing is in the area of information technology, legal area and bookkeeping. However economic subjects from Slovakia and countries of Eastern and Central Europe are not using this trend as much as other regions of the world, therefore present article point out to its potential benefits. External accounting is favorable to SMEs, where there is inefficient and costly to employ an internal employee (accountant) and buy software for IT Bookkeeping and thereby increasing business costs. Internal accounting is favorable for large enterprises with more staff, where is cost cheaper to purchase IT and software for bookkeeping. Purpose of the paper is to examine two medium-sized production companies, in particular their bookkeeping. While one company keeps its accounts internally, the second uses the services of an external accountancy firms. Data for the analysis was provided by the company, which deals with single and double entry bookkeeping. Based on a comparison of the cost of bookkeeping in enterprises, we found that outsourcing is proper for this type of business from the view of finance and time saving. It can be recommended for small and medium enterprises, which is inefficient to employ internal staff. But single enterprise must consider all the pros and cons, as well as to decide how to lead their accounts. Therefore trend of outsourcing should be in the next period strengthening in enterprises of Slovak Republic.