Outsourcing financial functions, among the effective solutions for adaptation in a volatile economic environment

Opinion by Maria Butcu, Director, Outsourced Service Solutions, Deloitte Romania

The end of the calendar year traditionally represents, for Romanian companies, a moment of reflection regarding the planning for the following year, given that, most of the time, the most important legislative changes with impact appear in this period of the year in economics, applicable in the following financial year.

The year 2024 is all the more important from this point of view, given that the most important changes, especially in the tax field, are not expected until after the parliamentary elections in December, so companies have to work on several scenarios when drawing up budgets and business strategy for 2025.

The certainty related to the adoption of fiscal-budgetary measures in the next period is based on the need to reduce the budget deficit below the maximum limit allowed for EU member states, namely 3% of GDP, in the next seven years, under the conditions that, at the end of this year, it was to reach 7.9% of GDP. For this purpose, the Romanian authorities have developed the Medium-Term Fiscal-Structural Plan, which must be approved by the European Commission and which contains the priorities for long-term financial sustainability, including the necessary measures for this purpose.

The challenges and opportunities of legislative changes In principle, the plan aims at the gradual adjustment of the budget deficit, so that it decreases to 2.5% at the end of 2031, an objective that requires the increase of revenues to the state budget, the efficient management of resources, but also of public expenditures, and the optimal absorption of European funds.

The concrete measures have not yet been adopted, but some of them were already foreseen in the National Recovery and Resilience Plan, such as the tax reform to optimize the structure of taxes and fees to improve collection, the additional adjustment of the tax regime for micro-enterprises or the digitization of the tax system . To these is added the increase of the minimum wage per economy to 4,050 lei from January 1, 2025, recently announced by the Government, but also other obligations generated by the transposition of European directives or global regulations into local legislation.

Among them are pillar II of the reform of the Organization for Economic Cooperation and Development (minimum profit tax at the global level, also applicable in Romania from 2024), the EU Directive on sustainability reporting (CSRD) or the publication of country-by-country reporting (Public Country- by-Country Reporting), which will require companies to review their cost structures and tax strategies, but also to reevaluate their internal processes to ensure transparency and accuracy of financial information for strict compliance with these reporting obligations. Flexibility and agility, advantages in an effervescent legislative context In this climate of uncertainty and changing regulatory framework, outsourcing financial functions is becoming an increasingly attractive option for organizations.

This operation is not only a cost-cutting measure, but can also represent a strategy that allows organizations to quickly adapt to fluctuations in economic conditions. Working with specialist partners can provide expertise in managing legislative complexity and ensuring compliance with ever-changing regulations. Another significant advantage of outsourcing lies in the ability to transform fixed costs into variable costs, increasing the entity’s financial flexibility. This is essential in a dynamic global economy, where the speed of reaction to external challenges becomes a determining factor of success.

At the same time, by outsourcing financial functions, companies can manage fluctuations in demand and allocate resources strategically, thus securing a long-term competitive position. In conclusion, an in-depth analysis carried out at the end of the calendar year has the potential to help prepare organizations for the macroeconomic and legislative changes anticipated for the coming year (2025 in this case).

And companies that pay due attention to this analysis, including reassessing financial services and exploring outsourcing options as part of a broader strategy to adapt and innovate, will be better prepared to navigate the complexity of the economic landscape and thrive in – an environment in continuous transformation.