This is a thought leadership article by PrimeGlobal member firm Katz, Sapper & Miller which looks at how outsourcing accounting support can help you cope with COVID-19.
The financial downturn caused by COVID-19 marks an abrupt end to one of the longest periods of consistent economic growth in U.S. history. In the span of just a few months, every decision has taken on much greater significance, and the margin for error has dwindled down to the thinnest of cushions. This environment is causing many businesses to take a close look at their accounting functions.
Some companies can survive inadequate invoicing and payment management processes when times are good but learn quickly in a downturn that failure to manage these functions in a cost-efficient manner can create a drag on the business that none can afford.
Others that have excelled by going with their gut and reacting quickly to market changes during a strong economy are struggling to analyze and understand what their numbers are telling them about how to manage through a crisis like this one. These extraordinary circumstances are leading many executives to conclude that outsourced accounting support can have an outsized impact on their ability to survive the downturn and position themselves for success when it ends.
It might seem counterintuitive to institute a systemic change to your accounting processes in the midst of so much turmoil. Many businesses are hunkering down with the systems that got them to this point and choosing not to think about major changes to fundamental functions like accounting. But the fact is that the economic downturn is already forcing changes on us at a level not seen in generations. Many businesses are being compelled to reevaluate processes from the supply chains that deliver their materials and supplies to the customer interfaces that get their products and services out to the public. If your accounting processes aren’t delivering the transactional and strategic support you need, you may not find a better time to make this change. Consider how much more valuable some of the key benefits of an outsourced accounting function are in the current situation:
- Strategic CFO advisory services provide a wealth of added expertise at this critical time. Senior-level professionals can give your business the benefit of decades of experience managing businesses through economic shifts.
- If your business has a strong CFO in place, a trusted outsourced accounting provider can offer additional support and just-in-time insights and analysis to help get through today’s challenges.
- On the transactional side, outsourced accounting providers use cloud-based solutions to provide the “blocking and tackling” support for basic functions like billing and invoicing, expense management, and month-end closings. If businesses have learned anything in the last few months, it’s just how much can be done remotely. If you’re struggling to keep all of the “i’s” dotted and “t’s” crossed, outsourcing these activities can help to eliminate one of the problems keeping you awake at night.
- If you’re suddenly spending a lot more time trying to make sense of your financial reports, reporting and analytics support can help you figure out what your balance sheet and income statement are telling you. There’s no doubt that your monthly and quarterly reports look a lot different this year than they have in the past. Outsourced accounting professionals can give you assurance that the information in those reports is accurate and help you interpret what all of the changes mean for the future of your business.
We’ve seen the economy face challenges before and it always finds a way to reach a new normal and return to growth. The businesses that make the right financial choices in the midst of the current crisis will be the ones best positioned to thrive when things get back on track. If your business needs transactional, analytical, or strategic finance and accounting support to be ready for those opportunities, now is the time to put those processes in place.
With so much riding on the ability of your accounting function to meet day-to-day needs as well as deliver the big-picture information and insights you require to manage your business through this crisis, now is the perfect time to consider outside support. Customized outsourced accounting solutions like those we provide at Katz, Sapper & Miller can shore up the weak points in your financial processes and provide additional resources to support those who are doing all they can to keep your business afloat.
Katz, Sapper & Miller
Katz, Sapper & Miller (KSM) is a nationally recognized consulting, tax, and audit firm. Through our deep experience across multiple disciplines and industries, we leverage emerging technologies, combined with our people’s differing perspectives, ingenuity, and creativity, to help our clients solve their most difficult challenges.Learn more