The COVID-19 pandemic has taught us that businesses that are agile, flexible, and scalable are more likely to survive than those that are not. The old way of doing business is no longer sustainable, and companies need to embrace new ways of doing things to stay afloat.
But why did some companies fail while others succeeded during the pandemic? And what can existing companies do to ensure they continue to do well in the face of future uncertainties? One solution is future-proofing, which means preparing your business to thrive even when things are not ideal or unexpected events occur.
Forbes reports that the finance and accounting industries are entering a period of transformation. The impact of COVID-19 has accelerated massive changes in business, work, and life. However, future-proofing can provide you with security and financial stability as you navigate the uncertain and ever-changing business environment.
Let’s explore the benefits of outsourced accounting services and how they can help your business prepare for the future.
The concept of a future-proof business is not new. Industry leaders have long emphasized the importance of being prepared for what lies ahead. It involves implementing strategies and measures to anticipate and adapt to future changes. This includes identifying potential disruptions, evaluating their impact, and proactively taking steps to minimize risks and capitalize on opportunities.
Future-proofing is not a one-time event. It is an ongoing process that requires businesses to be constantly evolving and adapting. The ultimate goal is to secure long-term sustainability and resilience. Businesses that fail to future-proof themselves are at risk of decreased profits, loss of market share, or even extinction in severe cases.
Outsourcing is a familiar concept to many, especially large companies that have been practicing it since the 1980s and 1990s. While there are various forms of outsourcing, it generally involves a company hiring external resources, contractors, or third-party providers to handle its tasks or operations.
During the pandemic, outsourcing emerged as a lifeline for many businesses, even those that were on the verge of collapse. Many businesses were forced to make difficult decisions in order to survive. One of the most popular strategies was to outsource. This allowed businesses to save money, focus on their core competencies, and generate more revenue.
There are many different types of outsourcing, but one of the most common is accounting outsourcing. This involves hiring a third-party accounting firm to handle all of your company’s accounting needs, such as bookkeeping, tax preparation, and financial reporting.
Outsourcing accounting services can help businesses control spending and cut costs during uncertain times. While it may seem counterintuitive to implement significant changes, especially when struggling to fill accounting vacancies, it is actually the perfect time to make a smart decision.
Here are some of the reasons why outsourcing accounting can be beneficial during uncertain times:
Outsourcing offers a cost-effective solution as companies only pay for the specific services provided, eliminating the expenses associated with hiring multiple full-time and part-time employees. With outsourcing, you only pay for the specific services you need, eliminating costs such as benefit packages, payroll expenses, paid time off, retirement contributions, vacation and sick days, and workers’ compensation. This can lead to significant savings, with potential monthly cost reductions of up to 40% compared to hiring an employee.
Outsourcing providers have the expertise and experience to ensure that your financial records are accurate and transparent. Their knowledge ensures accurate financial records, providing valuable insights into your current business position and allowing you to make informed forecasts about the future trajectory of your organization.
Bringing on an outsourced team allows for fractional leadership with a specific focus on delivering desired outcomes. This frees up time for business stakeholders to address other critical aspects of operations. You can focus on driving growth and improving other important areas of the business by delegating responsibilities to the outsourced team, leading to overall business improvement.
Hiring an external team of accounting professionals enhances your ability to detect discrepancies in your books. Outsourced accountants can implement robust protective procedures to safeguard your business from potential threats in the future, potentially saving your company significant sums of money. The comprehensive oversight provided by an outsourced team ensures that every transaction is scrutinized, maintaining the highest standards and minimizing the risk of fraud, which often arises from inadequate controls in middle management.
The current economic situation is challenging, and outsourcing presents a rapid and sustainable solution for companies to seize opportunities without waiting for market conditions to fully recover. When you outsource, you can reduce your exposure to risks such as employee turnover, economic downturns, and technological changes. You can also improve your compliance with regulations by working with a third-party provider that has the expertise and experience to help you stay compliant.
The accounting industry is currently undergoing significant change, driven by digital transformation. This shift presents opportunities to transform data into valuable business insights. Today, finance professionals are expected to contribute to strategic business objectives alongside their transactional responsibilities, which means that the necessary skill set for finance professionals is evolving.
A 2020 Deloitte study found that finance’s new role as a strategic business partner will require businesses to balance human and machine-based competencies while also embodying the four qualities of future-ready companies: analytical, adaptive, agile, and anticipatory.
The data analytics skills and technological expertise required to achieve this can be difficult to maintain internally, which is why many businesses are outsourcing their accounting as a solution. These firms can provide the data analytics and technological expertise that businesses need to thrive in the digital age.
As a business owner, you constantly seek ways to future-proof your company. One effective approach is to outsource your accounting tasks.
Here are some tips on how to make the transition to outsourced accounting:
1. Define your goals:
Clearly establish what you aim to achieve by outsourcing bookkeeping services. Having a well-defined understanding of your objectives is essential before initiating the process.
2. Conduct thorough research
Not all bookkeeping services are alike. Invest time in finding the best provider that aligns with your specific needs. Look for their expertise, reputation, and track record of delivering reliable and high-quality services.
3. Establish a system
Collaborate with your chosen provider to set up a system that suits your business. This may involve developing custom accounting reports or implementing automated processes tailored to your requirements.
4. Train your staff
Ensure that your staff receives comprehensive training on how to utilize the new system and effectively interact with the bookkeeping service provider. Equipping them with the necessary knowledge and understanding will contribute to a smooth transition.
5. Monitor progress
Outsourcing bookkeeping services is an ongoing process. Regularly monitor the progress and performance to ensure everything is running smoothly. Maintain open communication with your service provider to address any issues promptly and maintain a successful relationship.
The COVID-19 pandemic has forced businesses to rethink the way they operate. The key to future-proofing lies in identifying the transformative shifts that have benefited certain businesses during the pandemic.
In the post-pandemic financial landscape, business leaders must adopt a long-term perspective. But it’s also important to understand that we are facing new challenges that employers have never seen before, such as “quiet quitting,” knowledge hoarding, and the Great Resignation. These challenges are making it difficult for businesses to succeed, but outsourcing accounting services can help.
If you need help with budgeting, forecasting, or understanding your organization’s financial health, outsourcing can be a good choice. Working with a company like Peach BPO can help you through tough times, while also saving money and taking control of your finances. You get a whole team of experts for less than the cost of hiring a few people for your own team!