Since the COVID-19 pandemic struck the world with unexpected ferocity, the businesses in all sectors have been on the back foot! It messed up certain industries such as tourism, entertainment, and forced other sectors to slow down operations. As the medical community strives to develop an effective vaccine and the governments are struggling to contain its spread, the businesses are gradually limping back to normalcy. A lot of companies are embracing working from the home model, and others are working with a reduced workforce to cope with the menace. However, it is still necessary to carry on certain business crucial activities, such as bookkeeping.
Ways to Manage Bookkeeping During the Pandemic Induced Situation
Executing bookkeeping operations properly amidst the ongoing pandemic has become challenging for nearly all companies- regardless of the sector, they operate in. The reality is you cannot overlook the importance of accounting work for your organization, even in such times. It can’t be kept pending, and doing so will lead to errors and cause problems in taxation later. In a situation when most companies are either working with a reduced workforce or switching to workforce reduction, how do you manage bookkeeping work properly? Thankfully, there are a few effective solutions.
Choosing bookkeeping management solutions in pandemic
The businesses struggling to manage their accounting operations amidst the ongoing pandemic can pick from a handful of solutions. Either they can switch to cloud-based bookkeeping services, or they can outsource entire bookkeeping operations.
Cloud computing does bring certain benefits for companies looking for bookkeeping management solutions. It enables the employees to carry on accounting related work from their home. They can carry on working without worrying about social distancing, and the online security measures are reassuring too.
However, for some businesses, using a cloud-based accounting solution is not viable. Their employees may lack the setup and resources to access cloud-based services from home. Internet glitches sometimes become unavoidable when employees work from home. That can affect continuity and workflow. Outsourcing bookkeeping operations enables companies to override such hurdles.
How Outsourcing Bookkeeping Services are viable for the businesses in pandemic
When you choose outsourced bookkeeping services of your company to a suitable agency, there are some obvious benefits.
1. Staying up to date with accounts– Owing to the menace of the SARS-CoV-2 virus, most companies are now maintaining social distancing practices in their premises. They have also been forced to reduce the number of working staff. However, certain business processes can’t be stopped. The bills have to be paid in time, and receipts need to be collected. Local vendors have to be paid too. Online transactions recording and ledger updating must go on. So, outsourcing bookkeeping services to a third party agency ensures your company stays updated on the accounts without glitches and delays.
2. Focusing on core operations– Every company is now focusing on core operations. Banks and financial entities are advising their customers to perform maximum possible tasks online. In most situations, companies are managing daily operations with a reduced workforce. Naturally, those employees are being subjected to an unprecedented level of stress. Accounting work is time-consuming and requires accuracy, too. By outsourcing it, the companies can reduce the workload on the existing workforce. Those employees will then be able to focus on core operations better.
3. Evading risk of errors- When the pandemic hit the world unexpectedly, resulting in prolonged lockdown, many companies were in the process of mergers and acquisitions. Managing accounting-related nuances of business alliances is no cakewalk- for sure. Such entities can gain immensely by outsourcing their bookkeeping work to a suitable agency. The outsourcing service provider will deal with the numerous aspects of taxation, and help streamline the process. The risk of errors will be largely eliminated.
4. Cutting down cost– In the present scenario, keeping a team of in house accountants or bookkeeping experts is something many companies simply cannot afford! They are looking for ways to bring down running costs as the sales and profits have gone down. Outsourcing the bookkeeping services to a professional, third party entity is financially more viable. It won’t be hard to locate a firm offering bookkeeping services at reasonable rates.
5. Evading risk of infection and related complications- The businesses are trying everything possible to ensure their existing workforce does not contract the virus. From sanitizing the premises regularly to enforcing workplace level social distancing- they are leaving no stone unturned in this regard. Asking more employers to attend office is equal to boosting the risk of infection at the workplace. By outsourcing bookkeeping services, they can keep the number of employees limited, and there will be a reduced risk of infection. The businesses will also be able to evade post-infection hassles like quarantining the workplace.
6. Evading lockdown related hassles- The COVID-19 induced lockdown that was imposed in many countries is now being lifted, gradually. However, in certain regions, the process is far from smooth. In fact, in specific areas, the government is either re-imposing lockdown or lifting it partially. These upheavals have made things tedious for a section of companies that rely a lot on regular staff. The employees often face transport problems. They may face problems in accomplishing certain types of tasks, including bookkeeping while working from home. Outsourcing accounting work to a third party agency is prudent for all parties involved.
7. Meeting compliance properly– After being hit by the pandemic, the govt. in many countries have appended or modified regulatory requirements. It has come as a blow to the companies that are already finding it tedious to carry the core operations. A section of businesses is already resorting to professional accounting outsourcing firms to meet regulatory requirements. To bring down the risk of non-compliance, you can do the same for your business.
Final words
The benefits of outsourced bookkeeping services of your company to a professional agency are quite clear. However, ensure that you assess a few agencies offering such services before zeroing in on the apt one.