The propagation of coronavirus around the world is affecting the economy and general business climate. The crisis has led, or is likely to lead, to at least a temporary decrease in sales for most companies – and companies that don’t respond to this situation will inevitably put themselves at risk. Wherever change occurs, there is a chance. Many current or new products and services have sales opportunities based on the effects of COVID-19 (i.e., hand sanitizer). From an operations perspective, however, there are also opportunities. One of the benefits of a downturn in business operation is that businesses have time to repair certain places that rarely get coverage, and this can be your accounting or else financial condition analysis.
Here are four accounting pivots that can help a firm grow stronger and better than ever for this crisis.
1. Get your accounting into the cloud
2. Automate your work processes and eliminate paper
3. Outsource your accounting
4. Use this break to make the business appealing for investment
What is Outsourcing?
If you outsource something, you are offering a corporation outside of your limited business operations. It may sound strange. After all, if you started your own company, why would you want someone else to be involved in it?
Outsourcing is a growing phenomenon with seemingly unimaginable advantages. Also, as of 2018, approximately $33 billion is spent on outsourcing finance and accounting processes around the world. It has risen almost 25 per cent over the past five years and shows no signs of slowing down. By delegating those duties to experts, the company would not only be able to save some money but also resources that can be used to achieve specific business goals.
Unfortunately, one of the downfalls of coronavirus is a general slowdown in the industry, as well as a decline in business investment. There’s no question that for most firms, the sales volume and profits are down, and some investors are stepping back or delaying investment sales. It will also be hard to raise debt, especially for those companies that need an injection of working capital to survive the crisis. Both of these findings are part of a typical downward market cycle triggered by the corona outbreak or some other crisis.
However, investment demand can be delayed or stagnant, but there is still a vast amount of capital in the economy seeking growth opportunities, both in debt and equity. As the economy goes around, chances for a well-run company would be high. So now, maybe a great time to start making use of this break to clear up your business.
- Firstly, ensure that the current operations are as effective as possible. Anyway, this action is a critical step in sustaining income with declining revenues.
- Secondly, now clean up your past financial records. Do not let it slip through your fingers if an investment opportunity emerges because you need time to correct your accounts.
- Thirdly, communicate with professionals who understand your business, market, and investment ecosystem.
Let experts focus on accounting, so you can focus on the lifeblood of your business, which is marketing, sales, and innovation. Therefore outsourcing can be the best option for you.
Why should you outsource?
When your business is increasing, or your company’s accounting procedures have become too complicated and time-consuming, it could be the best choice for you to outsource the accounting operations. Outsourced accounting services will give you and your business a variety of benefits.
Benefits of accounting outsourcing
1. It’s Cost-Effective
Outsourcing your accounting is usually less expensive than employing an in-house employee. It saves you time and resources to recruit and train and also relieve you from paying payroll taxes, salaries, insurance, pensions, time-off, and so on. Plus, most businesses roll the tech costs into the services they offer. You have the opportunity to recruit at the price you can afford for the services you require.
2. Drive Core Business Functions
Hiring an internal accountant will not necessarily drive revenue. Outsourcing your accounting allows you to spend resources on activities that can boost revenue by designing a website, inventory development, recruiting sales department staff, improving existing goods, etc..
3. Use a Leading Software
Powerful and flexible tools like Sage Intact will make complicated accounting an easy task. Standard software can handle the central or basic financials. Still, great software can take on more complicated tasks, such as revenue identification, inventory management, and project accounting, as well as links to business applications that you already use.
Is it cloud-based?
What type of access will you have to the software?
Properly research and test the software you’ll be using?
How is it advantageous to you at present and in the future?
4. Work with Accounting Experts
You gain access to accounting experts who are qualified in finance and accounting, with experience and expertise. They will help you know your finances better, provide support, and manage tough circumstances and tasks. There’s peace of mind knowing that mistakes are reduced, best accounting practices are followed, and you have access to a higher degree of expertise.
5. Access to Trustworthy Data
Strong financial details will be the foundation of business decisions. By outsourcing your accounting and having access to powerful tools, you can gather the data you care about and create graphs and reports around it. Say goodbye to construction reports and reviewing them to answer unique questions. Your data will answer your questions and give you the courage to make growth-driven decisions.
6.Increase Controls and Reduce Fraud
If most of the accounting processes of the company are in the power of one or two individuals, the risk of fraud is higher for the company. Changing the accounting to a third party eliminates this risk and allows for more internal control. While your accounting experts should be able to recognize where issues occur, flagging mistakes, so notifying you of any incoherences.
7. Tie in Additional Services
If your service provider provides other business services such as the management of payroll, tax, and pension plans, you can conveniently feed all relevant data into the accounting software for better visibility. There may be a potential to package services, and you achieve peace of mind knowing that experts perform all services in one location.
