According to BDO USA, most businesses are currently in one of three categories:
- Businesses in triage mode. – These businesses are focused on crisis management, business continuity, and survival of the business.
- Businesses that have seen a surge in demand because of the pandemic. – These businesses are struggling to keep up with the demand. Essential businesses and businesses supporting those essential businesses are in this category.
- Businesses that have a backlog of work that is keeping them in maintenance mode. – They need to keep an eye on their cash-flow to ensure they are able to survive if they aren’t able to replenish their pipeline with new business.
Ever since March 2020, businesses have had to pivot and respond quickly to all the uncertainty around them to stay operational.
From implementing remote worker policies to protecting and securing remote access to their company data there have been several challenges, that businesses have had to overcome to continue business operations.
In this article, we’re offering three recommendations to help you deal with some of the challenges and uncertainty you may be facing in your accounting department.
Our 3 recommendations to deal with the impact of COVID-19 on your accounting operations
1. Outsource your accounting functions.
By outsourcing the accounting function of your business you will reduce your payroll costs and add experienced professionals to your team. Additionally, these highly trained industry experts and accounting professionals will prove to be an asset especially in these times of uncertainty. So, you’ll only pay for what you need while maintaining the level of professional resources required for your business. From bookkeeping to fractional CFO services, you have several accounting services you can outsource to fit your business needs. Learn more about our accounting services here.
2. Move to the cloud.
According to a global survey of accounting professionals by SmartVault, firms that already had at least one cloud system in place prior to the COVID-19 pandemic fared far better than firms that did not have any cloud systems in place. The majority of firms (62%) who felt they are responding to COVID-19 successfully are more likely to be using cloud-based technology; particularly, cloud-based document management and online client portals. Are you looking for cloud hosting options for your existing accounting / ERP solution? Or do you want to move to a cloud ERP solution? Contact us for a free consultation to understand the pros and cons of moving to the cloud and selecting the option that is right for your business.
3. Transition to e-invoicing and electronic payments.
According to the survey, “Impact of the COVID-19 Pandemic” from the Association for Financial Professionals sixty-five percent of organizations are shifting from paper payments to electronic formats. Additionally, thirty-eight percent of organizations have implemented changes in their internal check issuance procedures. Switching to electronic payments and e-invoicing will allow you to continue your accounting processes at a normal pace, without being impacted by your geographical location. To learn more about e-invoicing and electronic payments contact us for a free consultation.
Next Steps
Which category is your business in? And how are you dealing with the impact of COVID-19 in your business and accounting operations? To learn more about any of the recommendations listed in this article, contact us for a free consultation. We look forward to connecting with you.
About CTO Associates
Are you interested in restructuring your accounting operations? Or do you need to resolve inventory issues? Would you like to quit using MS Excel spreadsheets for reporting? Or do you need to find a replacement for your old accounting system?
Our team has combined experience of over fifty years in a wide variety of industries. We have a background in international operations and financial analysis. Our team members include experienced bookkeepers, CPAs, and consultants. From entity formation to consulting Controller / Chief Financial Officer we’re here to assist your growing business.
At CTO Associates, we provide accounting and manufacturing software solutions. We serve manufacturing, distribution, and service businesses in MA, CT, NY, and beyond. Schedule your complimentary consultation with us here.