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An Accountant’s Guide to Outsourcing Accounts in Post-COVID19 World

October 13, 2020 | Corientz

It has become more important than ever in today’s pandemic-ridden world for accounting firms to take more responsibility for the well-being of their internal and external stakeholders.

How do you combat the new challenges Post-COVID19?

Accountants today face new challenges as they lose clients at an unprecedented rate, having to give up manpower, amid mounting backlogs.

They must be able to set wheels in motion quickly in the Post-COVID19 era. Accounting firms must be able to rise to these challenges by inspiring and motivating their staff despite the adversities.

One out of the box solution is to outsource services. Accounting firms can improve relationships with their clients by outsourcing some operations on a cloud-based platform using virtual collaboration tools. This will also support employees in reducing bottlenecks and backlogs, and uphold the confidence and trust of all stakeholders.

How to deal with productivity Challenges Post-COVID19 ?

With a burgeoning workload, compromised productivity, and no new recruitment drive on the cards, accounting firms are compelled to reinvent by looking to newer technology and new strategies.

One viable option accounting firms should seriously weigh to increase productivity is outsourcing accounting functions. The world is about to see a wave in outsourcing, especially with accounting firms, until things start getting back under control to deal with the challenge of decreased productivity. Outsourcing is a cost-effective solution to alleviate the productivity deficiencies by scaling up faster

Current Challenges Faced by Accounting Firms 

One of the major challenges that an accounting firm will face from the work from home culture is effective and real-time communication and collaboration among the employees.

Holding an ad hoc and impromptu meeting, brainstorming on the impending issues, or even a quick discussion over a coffee was just a matter of taking a few steps to the boardroom or cozy meeting rooms to pull together a solution. Not that easy any more amidst the New Normal of remote working separated by distance, or at times miles, borders, or even oceans.

Accountants’ jobs are critical as it deals with numerical precisions. Accounting functions and procedures are resource-intensive. For instance, payroll processing is a meticulous number-crunching game that invariably needs time, effort, money, and manpower to manage. 

You need to be spot on with numbers and calculation when dealing with accounting. Despite taking the utmost care, the things still may go wrong impacting the sanctity of the actionable real-time data.

Accountant Work that can be effectively and seamlessly outsourced:

The Accountant’s workload is massive and varied. Accounts management, bookkeeping, year-end accounts constitute only a small part of the total workload that an accountant is responsible for. The accountant’s task list is humongous. At times, an accountant is responsible for payroll management and processing as well.

To deal with a complex task list of an accountant, the decision for outsourcing lies with the management of the accounting firm whether to outsource a part of the accountant’s workload or the whole operations.

The criticality of accounting function is the key factor in the decision-making process. The accounting firm may decide to outsource the entire gamut of the work functions or choose to outsource only the non-critical workload and functions of an accountant.

Here are some of the functions that make a good business sense to outsource for your benefit:

✓ Bookkeeping

✓ Preparation and review of Vat work

✓ Monthly / Quarterly Management accounts

✓ Year end preparation work

✓ Payroll function

✓ Personal tax return

✓ Company Secretarial work

Benefits of Outsourcing Accounting Tasks:

Certain significant improvements may take place by incorporating outsourcing in your accounting firm’s business. These outsourcing decisions may hold good even in the post-pandemic era.

Let’s get some insights on the inherent benefits of outsourced accounting that may help you make a call whether to outsource.

  • Scale-up Manpower and technology 

As the workload mounts, you need to reach out to more resources. Two of such major resources are manpower and technology that needs to be beefed up, more so when the productivity takes a beating you need to pump in resources to speed up and keep up. Outsourcing may help to scale up faster.

  • Accessibility of updated Cloud-based Real-Time Data

Another significant advantage that deserves a mention in outsourcing is cloud base data warehousing and cloud-based accounting. Cloud storage made it easy to store large amounts of data that can be accessed and updated in real-time and from anywhere with built-in security layers to protect your identity with enhanced data security. 

Outsourced cloud platforms have empowered the accounting firms to reap the benefits of cloud-based computing and accounting, thus cutting the over-head cost of deploying large resources internally. 

  • Reducing Operational and Data Management Costs

Although it is interlinked with scaling up of resources and cloud-based technology, the apparent benefits of outsourced accounting are the reduction of direct tangible costs, such as capital cost, maintenance cost, running cost, turnover costs, and recruitment costs.

Concurrently, you are widening the scope of accessing a large pool of accounting experts and professionals by leveraging outsourcing while maintaining your existing workforce.

Closing Remarks

In the Post-COVID19 era, the cities will gradually open up; the work culture will witness a transition from ‘work from office’ to ‘remote & virtual working’ via outsourcing. This is going to stay and remain prevalent in most walks of life even when the pandemic has lost hold.

To make your employees feel safe and protected, you must jump on the bandwagon of outsourcing services and make the most out of it.