Almost a year since the COVID-19 pandemic began and the impact of months of lockdowns continues to affect every industry in the world. The effects are damaging and have incurred many operational and financial challenges.
Since the implementation of the lockdowns, companies started to look for ways to deal with the challenges while addressing the needs of their customers, clients, or employees.
One of the best ways to continue business operations was to outsource services. This includes essential tasks such as outsourcing accounting services including bookkeeping and other financial tasks, virtual assistance, and digital marketing.
Aside from this, other initial steps to adapt and continue is to shift workplaces from the office to the virtual environment.
Unfortunately, some businesses and companies were forced to lay off employees due to the financial damage of the crisis, thus, opting to outsource tasks as needed to continue generating profit.
Outsourcing Accounting Services During COVID-19 Pandemic
Outsourced accounting is one of the best options entrepreneurs thought of so their businesses thrive in these unprecedented times. This task is essential because it can help the owners to see and plan out the next steps they will do.
Included in accounting tasks are outsourced bookkeeping, this will help the owners see the long-term implications of this crisis.
This shift in the economic landscape has opened opportunities for many businesses that have previously been hesitant to consider outsourced accounting.
Some of the tasks you can get assistance from outsourced accounting services are invoicing, bookkeeping, analysis, financial reporting, planning, accounts payable and receivable, etc. Basically, all the stuff related to your finances.
Benefits of Outsourced Accounting
Maybe you are a bit hesitant because why would you entrust your finances to someone you barely know. However, there is a lot of benefit from outsourcing accounting services. Here are a few of the long list:
Access to Expert Advise
If you found the best-outsourced accounting firm, you are in good hands. They will match you with accounting experts who live, eat, and breathe their job. Therefore, it is guaranteed that they can do the job right and do it cost-effectively.
Outsourcing has been a trend for quite some time now and outsourcing firms only hire the most qualified individuals because the competition is tight in the market.
You never have to worry because these experts will be handling your finances in an unbiased and objective manner.
Increased Depth of Knowledge and Resources
You are also guaranteed that these outsourcing accounting services providers are updated on the latest trends and resources in accounting. Moreover, accounting experts are versatile and up to date on all the latest regulatory requirements and laws and regulations so you do not have to worry about any technicalities.
Having experts on board handling your accounts and finances gives you time to focus on management and core operations essential to business success especially during a crisis like COVID-19.
Reducing Business Costs
This is one of the best advantages of outsourcing accounting services. Similar to other outsourced tasks, you only pay for the services you need, when you need them.
Some firms offer different services, you can choose among full outsourcing, co-sourcing, or even specialized outsourcing just to address temporary staff shortages.
Outsourcing accounting functions reduces payroll costs while still getting quality outputs. Outsourcing can also mean less stress for you on explaining particular tasks or processing potential pay-offs.
Moreover, you can lessen the time, effort, and cost of hiring a new employee. You will no longer need to take time signing up for pieces of training because the firm will handle it for their accountants, and bookkeepers.
By outsourcing your accounting responsibilities, you can guarantee that everything will be completed on time because professionals are handling your data.
Most accounting firms have a streamlined system to produce quality results and frequently include easy to understand analytics for your understanding.
Also, these firms use accounting tools and technology that allows them to have more accurate results for you.
Gaining Valuable Time
When you find the perfect outsourcing agency, you can gain valuable time, allowing you for better workload management.
Your chosen outsourcing agency will handle everything based on what you ask them to do.
Here are a few services included in outsourced accounting:
- Payroll maintenance, including wages, superannuations, workers compensation, etc.
- BAS, IAS and Income Tax preparation and submission
- Bank reconciliation and preparation of financial statements
- Recording and reporting
- Accounts Receivable
- Accounts Payable
- Invoicing and Debt Collection
- Cash Flow Management
Your other employees can focus on their jobs and contribution to your business. Also, instead of worrying, you can redirect your focus on what matters: business growth and business continuity amidst a pandemic crisis.
There are still many things to consider before you commit to outsourcing. The final decision is still on you. You must first think which decision will be the best for your business. You can still keep in-house accountants and bookkeepers if you think you are still not ready for outsourcing.
However, if you are convinced after learning the benefits of outsourcing accounting services, you must do your research to find the perfect outsourcing agency for you. Look for an agency that has a solid outsourcing strategy for your business, moreover, a great history of successful projects.
If you think outsourcing is a bit risky especially during a global crisis and you cannot manage to waste any amount of money, then you can start by outsourcing non-core tasks first. It usually includes highly repetitive tasks, like data entry. From there, you can expand.
For other business owners like you, the decision to outsource accounting tasks is their first step toward making life easier – less stress, more savings, and higher productivity; and processes safer with the added benefits allowing them extra time to focus on management and core operations to make sound, logical financial decisions.