Five Benefits of Outsourcing Accounting Functions During a Pandemic
Commerce in all sectors is being forced to reinvent processes and product offerings at an unanticipated pace. As businesses react to these new challenges in an unpredictable marketplace, the day-to-day operations of management also must evolve. Businesses have been forced to shutter physical office spaces, and maintaining effective financial operations has become a major challenge. This has been especially problematic for businesses with large internal accounting departments that rely on physical documents and in-person workflows. Through the combination of the right technologies serviced by a reliable accounting firm, outsourced accounting has become a viable solution and can enhance financial operations.
- Financial Efficiency
As a result of the SARS-CoV-2 virus and incidence of COVID-19, many communities have imposed shelter-in-place restrictions. These restrictions have forced numerous businesses deemed nonessential to close their offices. While revenues and cash collections may have slowed, business processes must continue. Bills must be paid, local taxes must be filed and receivables must be billed and collected, and financial analysis is now more paramount than ever. Businesses that are equipped with an outsourced accounting solution are well positioned to keep financial operations running smoothly amid local restrictions.
The pandemic has wreaked economic havoc on small businesses, and the competitive landscape will presumably be very different post-COVID-19. The economic recovery will present a great opportunity for businesses that are willing to adapt, positioning them for quicker rebound and eventual growth. These forward-thinking, adaptable organizations will find themselves in a unique short-term landscape with reduced competition. The ability to be agile to meet the evolving demand will be a leading indicator of business growth and success. A trusted accounting outsourcing provider can help businesses remain agile and take advantage of economic opportunity.
Outsourced financial operations also provide organizations with a high degree of scalability. Outsourced accounting operations provided by a reputable provider can help position an organization to seamlessly deal with the complexities associated with mergers or acquisitions. In addition, a reputable outsourcing services provider can provide additional expertise through its in-house merger, acquisition and tax planning teams. The depth of services and collaboration found within a reputable service provider can help organizations streamline expertise, accelerate opportunities and enhance synergies. Outsourcing through a firm with diverse knowledge and a depth of expertise can better position businesses to navigate opportunities even in a remote work environment.
- Adaptive Communication
The move toward technology-based communication has accelerated through programs like Zoom, Teams and Skype. These technologies have temporarily replaced face-to-face meetings with virtual meetings. Although there is still inherent value associated with in-person meetings, it seems apparent that additional technology-based communication is here to stay. The finance and accounting outsourcing industry is experiencing a similar technological trajectory. Businesses already engaged with a trusted outsourced accounting provider are likely reaping the accounting, finance and communication benefits.
- Technical Expertise
One of the most critical considerations when choosing a respected outsourced accounting provider is the firm’s technical expertise. The advantages to this have rarely been more evident than in the current environment amid an abundance of new legislation, including the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act. The unprecedented volume of new rules, regulations, loan options and income tax changes has presented finance and accounting opportunities for businesses but also has created a level of complexity that has led to some uncertainty. Businesses are relying on their trusted advisors’ expertise now more than ever. Our clients have relied on us as individual advisors and on BKD for relevant news, changing guidelines and new regulations through our COVID-19 Resource Center. To learn more, check out our webinar, “The New Normal – COVID-19's Impact on the People, Processes & Technology of Finance Departments.”
As with most topics related to COVID-19, changes are being made rapidly. Please note that this information is current as of the date of publication. To connect with a BKD Trusted Advisor™ or learn more about our accounting outsourcing services, fill out the Contact Us form below.