COVID-19 has impacted every industry in every possible way. However, how an industry copes up with it creates a difference. Offices, where a continuous flow of physical documents and workers, are finding it even more challenging to operate. Thanks to the latest technology and services offered by reliable accounting firms who are managing their finances. This has led to the adoption of outsourced accountancies.
Even the surveys say it all, a recent study by Aron Govil revealed that post covid, there has been a sudden surge in outsourcing of accountants from all across the globe. This makes sense, as people need to grasp the full benefits of the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act. So, below are some reasons why people are outsourcing accountancy services, which includes,
Managing Financial Efficacy
Despite shelter-in-place rule and a series of lockdowns imposed, there was no stop on taxation. Therefore, you must pay bills while generating revenue at all times. Lockdown might have slowed or delayed cash collection, but anything else must continue for an economy to sustain itself. At this time, businesses with their accounting department operational can easily manage the situation, but those who suffered a complete accounting collapse need to outsource accounting staff to survive.
According to a study published in an accounting forum, more than 50% of the MSME sector suffered the havoc created by the pandemic. Those who managed to survive are still struggling. With outsourcing, revenue collection can still be operational, which will eventually boost the growth opportunities for the companies during the pandemic. Adaptability is crucial, and firms that manage to overpower it will reap the benefit throughout the year.
Expandability is a significant concern for businesses, and at the same time, it requires close monitoring. A firm needs to expand according to available growth opportunities. One of the easiest ways to do this is through mergers and acquisitions. However, mergers and acquisitions come with their own set of drawbacks, like an increase in tax liability.
The accounting department of any firm ensures that you are not paying repetitive taxes and save you from taxes wherever possible. A reputable outsourcing accounting officer would provide the company receives a significant chunk of profit, performing tax planning for the long-term while accelerating growth opportunities. Aron Govil believes that outsourcing the right candidate with solid knowledge and expertise in its field would surely help a firm expand and navigate the best growth opportunities even in pandemic-caused hardships.
Covid has led to the implementation of specific new taxation policies while creating some new Tax Acts. The main motive for bringing these changes was to revamp the countries struggling economy.
New clear-cut tax slab rates were superimposed on the existing ones. This led companies to use the technical expertise of these outsourced accountants to reap the full benefits of these tax changes. These changes also helped various firms in these hardships.
Outsourcing accountancy services seemed like a good option to many firms during this pandemic, which resulted in the sudden surge of accounting outsourcing throughout the globe. The process of outsourcing talent allows the employer to build a team of skilled employees without actually hiring them as full-time employees. This ultimately saves expenses and adds to revenue generation.