How US CPAs can Navigate Covid Implications & Lead Through the Crisis
Aug 26, 2020
The financial downturn is causing widespread concern and increasing economic hardship for consumers, businesses, and countries around the globe. CPAs are grappling to deal with their business continuity plans and facing challenges relating to recoverability and impairment of assets, accounting for financial assets, preparation of forward looking cash flow estimates, contract modifications, government interventions and going concern.
Pertaining to the above challenges, CPAs are developing assumptions and estimates for assessing the recoverability of nonfinancial assets (including goodwill), determining the realizability of deferred tax assets (DTAs), and assessing their ability to continue as a going concern. During these uncertain times, businesses look up to their CPAs for financial advice and guidance, as in the past many businesses needed help navigating the CARES Act, while others wanted to continue to work on their taxes to maintain some sense of normalcy. Therefore CPAs should focus on adapting the ‘new normal’ whilst ensuring minimal impact to existing processes and operations.
Working proactively during these setbacks to manage the challenges in a cost-efficient manner can lead many CPA firms to conclude that outsourced accounting solutions can have an immense impact on their ability to survive the downturn and position themselves for success when it ends.
WHY NOW IS THE RIGHT TIME TO OUTSOURCE
- Business Continuity
Business continuity planning, an extensive, ever-changing process, is at front and centre of the enterprises. It helps in to build confidence, cultivate resilience, and provide valuable business data to safeguard the business during challenging times. Globally, Business that are looking to be prepared for such events and to ensure that their operations can continue uninterrupted, look for partners in a geographically different location for Outsourcing for work.
Outsourcing solutions can be a key element in your business continuity plan. Partners who offer day-to-day support services would be able to take on greater responsibility in a disaster recovery situation.
- Work From Home Challenges
In the current scenario, almost everyone around the world is working from Home. As this trend becomes the new normal, workforces will become dispersed and diverse. But it takes time for ‘new normal’ to take hold. At this inflection point, outsourcing experts help navigate CPA firms and enable a smooth transformation.
The outsourcing providers have expertise in working remotely for their clients, hence taking charge in such situation would be no different, enabling smooth workflow, optimization of existing resources and uninterrupted critical operations for CPA firms.
- Global Skill Shortages
According to a research, 54 per cent of companies reported skill shortages with businesses in 36 out of 44 countries finding it more difficult to attract skilled talent than in 2019. This problem has only increased in 2020. Most Recently due to COVID, US Senators have urged President Donald Trump to suspend all non-immigrant work permits for at least a year or till employment levels return to normal. Hence the shortage and costing of skilled professionals in their own country has lead CPA firms to outsource their work to India to attract more talent remotely without even taking the load of hiring.
- Development of New Business Models
Due to the downturn, there are several challenges in terms of data migration, security requirements, application optimization, organizational resistance, highly fragmented processes, and regulatory compliance.
This had lead many CPA firms to transform their Business models, whether into a Work from home model or into an Outsourcing model, enabling cloud-based solutions. Disruptive outsourcing model has enabled organisations to reimagine and transform their businesses to drive performance, improve speed to market, and increase innovation. Outsourcing-led transformations have the potential to bring about an ultimate change and drive competitive advantage.
- Shrinking Revenues
This traditional driver of accounts outsourcing has returned with full pace as this pandemic has wreaked economic havoc on many CPA firms. Financial analysis is now more paramount than ever and it is critical for CPA firms to give the foremost priority to business continuity and liquidity functions of their businesses. Corporate profits in the United States plunged 14.2 percent in the first quarter. It was the sharpest decline in corporate profits since the last quarter of 2008, amid the coronavirus crisis.
Many forward-thinking, adaptable businesses that are equipped with an outsourced accounting solution will find themselves in a better financial position in a unique short-term landscape with reduced competition. The economic recovery will present a great opportunity for businesses that are willing to adapt, positioning them for quicker rebound and eventual growth. A trusted accounting outsourcing provider like SandMartin can help businesses to remain agile to meet the evolving demand and take advantage of economic opportunity.
- Goodwill & Ability
How CPAs responds to this stressful event can shape employee and public attitudes far into the future and be a defining moment for their corporate culture. Outsourcing the work can build up their goodwill like never before, as the ability to react to these setbacks will prove their calibre to implement the BCP and strong grips in the industry.
Thus leading to increased clientele and from their clients’ perspective, many of the workarounds and innovations employed out of necessity during the upheaval will turn out to be preferable to what the firm did in the past as a new normal in a post-crisis situation.
Gain Competitive advantage through Expert advice
Many CPAs are grappling for their life right now, if your CPA firm has not yet looked into utilizing outsourced accounting solutions, 2020 may be the year for you to make the change. The benefits of outsourced accounting are obvious—between resource utilization, Certified Domain Expertise, Data security with certified firms, scalability, time-zone advantages, innovation & balance, you will get your money’s worth and higher savings.
An Outsourcing provider like SandMartin can take the number-crunching workload over, and turn your focus on a better client value proposition. SandMartin has worked with many different clients and can add ideas, perspective, and encouragement from what they have learned through other businesses they serve.
How to Get Started SandMartin has more than 20 years of experience in assisting US CPA firms grow and reach their maximum potential. To get started, contact our finance, accounts & taxation outsourcing experts at email@example.com and get an intro call scheduled.