The COVID–19 pandemic has induced extreme ambiguity in the global trade and commerce. The public safety measures and the associated restrictions to contain the spread of COVID-19 has significantly disrupted companies, jeopardizing the overall global trade and commerce. Moreover, the pandemic has forced companies to bear high human and economic costs while declining the sales causing unparalleled demands of outsourcing many supplementary services.
In such times, the first set of responses among companies is to ensure that they maintain the market demand and continue their operations without any obstructions. Hence, companies to minimize their losses and speed up financial recovery, companies are opting to outsource accounting services, human resource management, information technology services, etc.
Accounting Responsibilities’ Involved
Outsourced accounting services appeal to companies, especially those who are dealing with mounting overhead costs during the COVID-19 pandemic. Some of the accounting and financial management tasks can be extremely time-consuming. Such as tax preparation, payroll processing, bookkeeping, cash-flow management, etc. Companies prefer delegating all the accounting services or a fraction of accounting duties, depending on the responsibilities involved.
Here are some of the accounting responsibilities that are mostly outsourced by companies:
- Processing Payables & Receivables
- Managing Cash Flow
- Processing Cash and Bank Transactions
- Reconciling Accounts Monthly
- Preparing Financial Statements (Monthly, Quarterly & Yearly)
- Drafting Budgets & Financial Forecasts (Monthly, Quarterly & Yearly)
- Assisting with Tax Planning & Calculation
- Maintaining GST/ VAT records & Other Financial Compliances
Reasons for considering to outsource accounting services:
How do outsourced accounting services help during COVID-19?
1. Continue financial operations
Due to COVID-19many places are under lockdown and limitations have been imposed on various non-essential businesses. Companies are forced to close their offices and revenue has decelerated. Yet, companies have to make payments, file taxes, account expenses and incomes, maintain books, and find alternatives for cash collection. Under such circumstances, outsourcing accounting services help companies to successively continue their financial operations.
2. Stay Informed & Compliant
An important consideration of outsourcing accounting services is to stay informed and compliant. It is difficult for companies to stay updated about the various new financial regulations imposed due to COVID-19. Across the world, government and legal bodies have introduced new rules that companies must adhere to in combat with the current economic crises. However, these rules can be complex, and having an outsource accounting service provider with expertise on staying informed and the complaint is surely beneficial.
3. Make Use of The Latest Technology
The current environment of the pandemic has boosted the demand latest accounting tools and technologies. But through outsourcing accounting services, companies do not have to invest in these technologies. For instance, accounting service providers allow companies to use the latest cloud accounting software. This means companies can eliminate the added expense of hosting, installation, and maintenance of the software. Moreover, cloud accounting software offers security, data storage, hassle-free functioning, and universal accessibility – that can be perfect for working remotely.
4. Agile to Take Benefit of Post COVID-19 Opportunities
The COVID-19 pandemic has undoubtedly weakened the economy; nonetheless, it has also created a unique channel of opportunities with reduced competition. Post COVID-19, the economic recovery will present a unique channel of opportunities to companies willing to adapt to the altering demands of the market. Being agile will allow companies to become a leading indicator of growth and success – which can be achieved by outsourcing accounting services. An outsourced accountant can help companies be agile and take benefit of economic opportunity at the right time.
5. High Degree of Scalability
Outsourced accounting services offer companies with a high degree of scalability. Companies can easily deal with simple tasks like bookkeeping to advanced expertise to deal with the complications related to mergers or acquisitions. Also, outsourcing accounting services provide added support through its in-house teams working on enterprise risk management, due diligence, compliance management, tax planning, etc.
The range of collaborations found within an accounting service provider can help companies streamline and accelerate their overall scalability.
With an outsourced accounting service provider, companies can eliminate expenses associated with hiring an accountant – such as salaries, health insurance, paid leave, training, payroll taxes, related overheads etc. Companies are also provided with customized assistance, the latest financial management software, dedicated support and so much more for the fraction of the actual costs involved.
Hence, outsourcing accounting services is a cost-efficient measure to reduce the overall expenses and still be able to ensure that all areas of accounting needs are fulfilled significantly.
Consult our financial experts at Diligen https://www.diligen.in/ to understand how you could keep your company’s finances intact during this crisis.
For more information contact us right away!