Five Benefits of Outsourcing Accounting During a Pandemic for Publicly Traded Companies
As the COVID-19 pandemic rages on, public companies are now challenged with determining if some of their short-term decisions, such as furloughs and headcount reductions, will continue going forward. The COVID-19 pandemic also has possibly changed what paid sick leave may look like or the amount of time out of the office a sick employee must spend before returning to work. The absence or potential absence of employees is forcing companies to review their current processes, procedures, and staffing and technology needs. Companies will need to consider items such as the cost of staffing a whole department versus outsourcing their work and having or providing the right technology to allow telecommuting and remote work.
Companies also will need to balance benefits with costs, decide if arrangements will be for the short term or long term, and determine if staffing shortages, such as furloughs and layoffs, will be temporary or permanent. While these decisions are being made and implemented, business reporting requirements, while sometimes delayed, are still required. This is where BKD’s Public Company Advisory Services team can help.
BKD’s Public Company Advisory Services team assists public companies with reporting and compliance requirements, internal audit functionality, state and local tax, employee benefit plans, cybersecurity, and more. For businesses with large, internal accounting departments that may be experiencing personnel shortages, BKD’s Public Company Advisory Services team can help bridge the gap. Through the combination of the right technologies serviced by a reliable accounting firm, outsourced accounting functions have become a viable solution to assist with day-to-day operations.
Here are five benefits companies should consider when deciding to outsource their accounting functions.
As a result of COVID-19, it’s likely that revenues and cash collections have decreased; however, essential business processes must continue—public and informational reporting is still required, taxes must be filed, and system processes must be monitored. Financial analysis is now more paramount than ever. Businesses equipped with an outsourced accounting solution are well positioned to keep financial operations otherwise running smoothly.
- Strategic Planning & Growth
The pandemic has wreaked economic havoc on businesses and the competitive landscape will presumably be very different post-COVID-19. The economic recovery will present great opportunities for businesses willing to adapt, positioning them for quicker rebound and eventual growth. Having a trusted accounting outsourcing provider already in place can provide businesses with the ability to focus on future growth strategies and allow them to capitalize on economic recovery. Without the burden of reporting requirements, internal monitoring, or cybersecurity threats, businesses will have the time to strategically re-establish their internal structure and consider other items, such as bringing back furloughed employees or even outsourcing routine tasks permanently.
Outsourced financial operations also provide organizations with a high degree of scalability. Outsourced accounting functions provided by a reputable provider can position an organization to more easily deal with the complexities associated with mergers, acquisitions, expansions, restructurings, etc. 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.
Technology-based communication is here to stay. Programs like Zoom, Teams, and Skype have replaced the common face-to-face meetings with virtual meetings. Although there’s still some inherent value associated with in-person meetings, the ability and ease to have a virtual meeting with video conferencing has made working in the remote environment easier. Service providers no longer need to be in the same location to provide quality services and can easily be accessible through these platforms. This improved technology has allowed businesses to seek out accounting outsourcing providers that will meet their needs. Technology has eliminated both communication and geographical barriers.
- 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 accounting pronouncements and legislation, including the implementation of ASC 606, Revenue from Contracts with Customers, and ASC 842, Leases, along with the issuance of the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act. The unprecedented volume of new loan options, rules, income tax changes, and regulations has presented businesses with finance and accounting opportunities but also has created some uncertainty as a result of the new levels of complexity. Businesses are relying on their trusted advisors’ expertise now more than ever. Our clients have relied on BKD for relevant news, changing guidelines, and new regulations through our COVID-19 Resource Center.
To learn more about BKD’s Public Company Advisory Services, reach out to your BKD Trusted Advisor™ or fill out the Contact Us form below.