The novel coronavirus outbreak has impacted the world economy and the US business environment in general. For many businesses, the resulting crisis has led to a significant decline in revenue – but, with massive furloughs, layoffs, and terminations leaving thousands of businesses without bookkeepers, how do you know exactly where your company stands financially? If this downturn has left you with a lack of accounting support and your company has yet to react to this dramatic change, the time is now.
If you’re wondering how you’ll stay on top of your accounting and bookkeeping processes during the pandemic, have you considered outsourcing these tasks?
Need for Solid Accounting Department During Economic Crises
Companies are facing several difficulties when it comes to financial reporting. The unpredictability of the coronavirus pandemic is impacting businesses around the world – big and small.
Some of the seemingly impossible tasks facing business owners include:
- Cash-flow estimations
- Asset recoverability reports
- Asset impairment reports
- Balance sheets
- Profit & Loss reports
- Financial asset accounting
Even with additional time granted by the government to produce these items, time isn’t necessarily the issue. Business owners need to know where they stand.
Benefits of Outsourced vs. In-House Accounting Professionals
Perhaps now more than ever, outsourcing your accounting department has several significant benefits. By nature, outsourced bookkeeping solutions were created for remote provision. And while access is remote, you won’t be out-of-touch. You can remain in communication with your remote team via email, text, phone, chat, or video conferencing programs like Zoom.
The average annual cost of an in-house accountant is over $100,000.00, plus the added costs of benefits and taxes. Outsourcing accounting services costs nearly half the amount without the added costs of benefits and taxes.
Outsourced bookkeeping solutions provide entire teams to assist you with everything from simple tasks to critical reporting. Their work-from-anywhere model means there’s no period of adjustment, which also means the COVID-19 crisis doesn’t alter their ability to provide you with the insight you need during this time. Without tight, ongoing knowledge of your financial standing, it’s difficult to predict cash flow or make crucial decisions regarding your business.
While various government programs are at your disposal to either keep employees or rehire ones you’ve let go, continued outsourcing of accounting department functions can lead to significant cost savings in the short- and long-term versus hiring and onboarding new talent.
Just imagine – outsourcing your accounting functions during this pandemic means you’ll have the freedom to continue other pressing matters, like simply running your business. You can be confident that your remote team is handling the books correctly, and you’ll receive much-needed insight regarding how your business continues to fare during the pandemic. If you have any questions, you can reach out via any of the communication methods mentioned above. Having a team of outsourced professionals on your side – whether or not there’s a crisis – helps you continue making sound financial decisions for the health of your company.