Companies across multiple industries have faced numerous challenges due to COVID-19, including government-sanctioned lockdowns and supply chain disruptions. However, the pandemic has also forced many businesses to adjust to remote work, as it has now become the new normal. As CFOs across the board face financial reporting needs, they are wondering which issues to prioritize for their companies to thrive in a post-pandemic economy.
Financial Reporting Needs in the Post-Pandemic World
Since COVID, financial forecasting has been the biggest issue for businesses. This is due to the uncertainty brought on by the pandemic and the rise of critical questions, such as “Will businesses go back to normal?” or “What will the new normal look like?”
With that said, the economy has certainly fared a lot better than many businesses predicted. In fact, some companies were able to figure out the formula for success regarding remote operations in a pandemic-riddled world.
Today, financial forecasting presents two common themes – strong revenue growth and cost reductions. Many companies project that economic growth will continue and that their revenue will increase during the newly established normal. Even though some companies have faced a decline in revenue, it has been largely offset by the significant cost reductions across multiple departments. The pandemic allowed businesses to reduce their cost structure with pertinent steps, such as pay cuts, reduction in travel costs, occupancy, and related costs.
Many businesses are hoping that their cost reductions will be sustained. It stems from the idea that if a company can operate without certain costs, then these costs were unnecessary. However, that might not be the case for all companies, given that some businesses need to operate on-site and will incur operating costs.
Financial reporting and forecasting continue to be challenging as companies are uncertain about the sustainability of their current cost structure in a post-pandemic world and their revenue projections.
Challenges Related to Internal Reporting
Now that most companies are having their employees return to work, it poses different challenges related to internal controls. Many companies had to deal with these challenges during the pandemic when they were forced to work remotely. Businesses that relied on internal controls on-site struggled to maintain their performance remotely.
Moreover, the new challenges that crop up might be driven by modifications in the staffing models and employee headcount, leaving some or most of the controls with temporary or new control owners. In such an environment, it can be difficult to maintain traditional duties related to internal controls.
Additionally, many organizations are facing physical inventory challenges, leading some businesses to pursue statistical sampling as part of their inventory verification processes. Businesses have also faced many challenges in the IT department, including cybersecurity risks.
Furthermore, businesses are facing an emergent need for transparent financial statement disclosures and improved stakeholder communications. Earlier, many companies were focused on how they were handling the pandemic and adapting their financial strategies. Today, businesses are actively looking for sustainable financial models and ways to evolve and become stronger in the post-COVID world.
How Outsourcing Can Help with the Post-Pandemic Financial Reporting Needs
An overwhelming majority of businesses are thinking of outsourcing going forward. Thanks to the benefit of managing large-scale workloads, access to experts, and growth opportunities, many companies are starting to see outsourced accounting work and other services as solutions to their post-pandemic woes.
Financial reporting needs and outsourced accounting go hand in hand since the latter can help your post-COVID financial reporting requirements. The following is what outsourced accounting services can add to your company:
Conveniently Accessible Expertise
Outsourcing services can handle all your customized accounting needs and present you with expert solutions. Having convenient access to a pool of accounting experts gives you access to every resource needed to meet your deadlines or targets.
Business Agility
Outsourced accounting and bookkeeping services are actively helping businesses respond to mass-scale, disruptive events, such as the pandemic and the unpredictable economy. As accounting faces sudden, sweeping, or unexpected changes, outsourced accounting experts offer you the flexibility you need to adapt to changes while your in-house team can focus on the future of your company.
Turnover Security
Many businesses are using outsourcing to deal with the lack of qualified talent in accounting. When a company loses an experienced accountant, it does not have the time to find a replacement and train them. Outsourcing allows you to quickly fill that gap for as long as needed so that your business does not suffer.
Tax Help
The finest accounting outsourcing firms have tax advisors among their core teams. It means that you do not have to find professional tax advisors to guide you regarding tax filing. You can rely on the same firm to handle your accounting and tax prep needs.
Real-Time Visibility
Businesses require comprehensive, reliable, and real-time insights to stay ahead of the curve. An outsourcing firm can do the job for you and deliver top-notch data to ensure real-time visibility into your financial performance, enabling you to make necessary tweaks for future successes.
Budgeting and Financial Forecasting
Today, outsourcing financial reporting and accounting firms offer complex budgeting and financial forecasting, among other services. These services are critical for businesses that do not have the time or resources to handle these critical tasks effectively and might need the help of experienced accountants to perform them seamlessly.
Comprehensive Performance Dashboards
Outsourcing firms also provide comprehensive, easy-to-access, and navigable dashboards that collect and update key performance indicators for your decision-makers to utilize. These firms can set up and maintain these dashboards to help you act on key data and real-time insights.
Cloud Migration
Securing your data on the cloud is essential in a post-pandemic world. Outsourcing firms can make the migration process easy, by taking care of the financial, technical, and operational aspects.
Windes can help
Windes is a financial service outsourcing company that acts as third-party subcontractors to manage end-to-end finance and accounting operations. As a business in the post-COVID world, you need to fulfill your financial reporting needs, and our outsourced accounting services can help. Outsourcing your accounting tasks will free up key decision-makers within your organization to focus on the growth and day-to-day operations of your company.
Talk with our Outsourced Accounting Team now to see how we can help your company grow.