Outsourcing accounting could become a vital asset to your small or mid-size company as the COVID-19 Pandemic continues to influence business and economic life. The global economic impact of coronavirus has forced businesses to make new and difficult choices in order to survive.
To fight for survival, two of the huge challenges businesses have faced in the COVID-19 crisis have been:
- Changing Spaces: The crisis has forced businesses to change workspaces and downsize locations.
- Diving Profit Margins: Likewise employers and employees have had to make ends meet in spite of declining revenues.
Investigating New Electronic Options for Businesses
At Gavrilov & Co, one of our goals during this Pandemic has been to help companies find new ways to survive during this unprecedented economic calamity. The outsourcing of accounting, bookkeeping, and payroll has been one of the most successful options we have offered business owners.
You see, we have met business owners who never seriously examined or trusted this option, in spite of the fact its popularity began as far back as 1999. Perhaps those business owners simply never realized the benefits of such outsourcing until this troublesome time.
Therefore, let’s examine the advantages of this option. Outsourcing accounting can leverage not only survival but success in troublesome times.
Outsourcing Accounting and Reducing Overhead
The first and somewhat astonishing realization the pandemic made upon the business world was that staff members could work efficiently at home. Accounting Today sees the option of outsourcing accounting as an extension of this idea.
Thus, we have discovered that many businesses could actually reduce their overhead costs by outsourcing their accounting. One area in which this was especially true was in the reduction of payroll costs.
Outsourcing in a Super-Secure Virtual World
Some of our smartest client companies realized long before the COVID-19 necessity, that secure technological solution, in the cloud help employees work from home in a super-secure environment. Modern benefits like simplicity plus convenience make this option very attractive.
“Therefore, migrating an organization to cloud-based accounting software from desktop or server-based software” makes perfect sense. You see, such a move allows both “business leaders and employees to have secure, remote access without any hassles.”
Business owners can check statistics anywhere and at any time. If you are curious about how that works, we refer you to a recent quote from a Gusto article:
They state simply, “Xero is run from a data center. Data centers are basically warehouses for digital information. They are never on site (i.e., not at Intuit HQ), and they use both digital and physical security measures to keep the stored data safe. For cloud services in sensitive areas, such as accounting, health, and other fields, cloud providers often use bank-level digital security and encryption to ensure your most confidential information is safe. Furthermore, the data is encrypted which means that even if someone hacks into it, they can’t read it.”
And the IRS adds the frosting on the cake by saying that outsourcing accounting to these cloud-based technologies, like Gusto and Xero, “can help assure filing deadlines and deposit requirements are met”…as well as “greatly streamline business operations.”
Deepening Resources by Outsourcing Accounting
Outsourcing accounting enriches the business owner’s financial resources and financial background. Without accounting degrees, the average business owner could never match the number of resources provided by outsourcing.
For example, they have “provided relevant financial and regulatory information to assist businesses in applying for Paycheck Protection Program loans under the CARES Act…” The accounting experts that run this technology command a constantly updated knowledge of the regulations and laws.
By engaging cloud-based accounting, you hire a team of experts in accounting as well as law and business. Thus, you expand the reach of your business resources exponentially.
Accounting Outsourcing Platforms Provide Options
Did you know that outsourced accounting platforms bring you the metrics that will help you improve your every-day financial decisions? For example, you can retain a cloud bookkeeping solution for your company. Gavrilov & Co can help you maintain it. And it won’t cost your company near as much as hiring an in-house bookkeeper.
Another choice is the full-cloud accounting solution. As stated in Accounting Today, they streamline your accounts payable with four easy steps.
- They automatically enter invoices for review.
- Next, the automated routing function makes short work of approvals.
- Then, they automatically pay the business bills with checks or ACH.
- Finally, the activity is synchronized with secure, cloud-based accounting entries. And thus, you have quickly documented reconciliation.
Gavrilov Gold: Our Quick Take-Aways
There has never been a better time to investigate the advantages of outsourcing your accounting. For example, Xero puts it quite simply: “Xero’s online accounting software lives in the cloud. That means you can automate everyday business tasks, get up-to-date financials, and run your business – from wherever you are.”
- Outsourcing your accounting helps you showcase your company’s transparency.
- And it will help you remain alert to changing government policies.
- You will always be in compliance with the most recent government requirements.
At Gavrilov & Co. we have seen another, more subtle benefit of outsourcing accounting, This is an advantage that is almost difficult to put words. You see, it is often the key to the physical and mental health of a business owner. There is no doubt this decision has made many business owners’ lives less stressful and therefore healthier.
At the most basic level, outsourcing accounting could suddenly give you time to focus on financial decisions instead of burning the midnight oil to figure out payroll. You will naturally find more time to concentrate on leadership and management.
If it sounds like you might benefit from learning more about outsourcing, we invite you to discuss the advantages with us. It could be your power-play for survival in the time of the pandemic. We can help you reinvent your business as we progress into our future, the “Next to Normal,” in a post-COVID world.