How to Survive the Great Resignation
Technological advancements pop up on the market weekly if not daily. The recent pandemic vamped up the production of advancements across the board, with almost every industry and business feeling some sort of impact. Neglecting to take full advantage of the new shifts in consumer and business demands can be detrimental for your business. From lost customers due to staff shortages to making poor business decisions because of late or missed bookkeeping deadlines, your business will start to suffer. Remote work and outsourcing capabilities are two of the technological advancements rapidly changing the way business is done. Understanding these shifts and the benefits of outsourcing your accounting department are the first steps in ensuring business continuity and prosperity.
Remote Work
When the pandemic was in full swing during 2020, were you able to quickly shift your employees to a remote workforce? If not, it might be time for a serious change. Small to medium sized businesses will have more difficulty hopping on the remote workforce bandwagon, especially if you are in an industry that requires in person work, such as construction, leading to outsourcing certain business functions, like accounting, to be in your best interest. However, automation of accounting functions is still available no matter which industry you find yourself in. Employees are no longer suggesting the ability to work from home, they are demanding it. The statistics speak for themselves:
25% of people are happier when working remotely
77% of workers say they are more productive working from home
44% of companies offer work from home options
85% of managers project a remote workforce to be the new normal
74% of workers say the option to work from home makes them less likely to leave a company (Steward, findstack)
However, a transition to a fully remote workforce brings up even more complex decisions for business owners. Reevaluation of the office space, company culture and new policies all need to be taken into consideration when implementing remote workforce capabilities (Sneader, McKinsey & Company). These decisions are projected to become more prevalent going into 2022, which is why businesses are turning to outsourcing accounting to ensure that the backend of their business is successful.
Outsourcing
The transition to a remote workforce is not the right move for every company, which is where outsourcing comes in. The inability to efficiently complete work led many businesses to outsource work, from accountants to customer service managers. Outsourcing not only takes the burden off your plate, but it can usually be a more cost-effective solution compared to hiring a full-time employee. Outsourcing is only expected to increase with technological advancements and remote workforce capabilities. The most common items outsourced are IT functions and accounting, both of which take a great deal of skill to accurately complete. Accountants and IT personnel are in high demand, meaning if you were to look for a full-time employee, you would pay significantly more compared to outsourcing work for a few hours each month. Just like with remote workforce capabilities, statistics surrounding outsourcing support this projection:
54% of companies utilize some type of third-party for customer support
Outsourcing was a $75.2 billion dollar industry in 2021
78% of businesses are confident in their outsourcing company
There are 59 million freelance workers in the US (Dautovic, fortunly)
When you put these statistics in perspective, 1 out 2 businesses utilize some type of outsourcing function. Keep in mind that you don’t have to be a large company to use outsourcing. In fact, many small to medium sized businesses benefit the most from outsourcing due to financial constraints, such as hiring a company for any tax related issues compared to hiring an in-house accountant. When businesses can no longer rely on a fully staffed team, outsourcing becomes more attractive and reliable.
Tangible Benefits of Outsourced Accounting
If the statistics weren’t enough to showcase the growing need for an outsourced accountant, let’s go into more detail. It’s no secret that times are uncertain with economic factors changing in the blink of an eye. One crucial aspect in your business that you can’t afford to lose control over is the accounting function. Strong controls within the accounting department are the primary contributor to business success. The labor force can be unsteady and unpredictable, while an outsourced accountant, like BUSINESS, gives your business assurance that all the backend work is taken care of. Let’s take a look at some outsourced accounting statistics.
37% of small business outsource their accounting function
46% of businesses report outsourcing give them access to a new skill set
68% of outsourcing companies are shifting to cloud-based technology (Dautovic, fortunly)
These statistics prove the value and peace of mind an outsourced accounting function provides businesses. Common ancillary functions outsourced include monthly bookkeeping, payroll processing, and report creation. Are any of those items ringing a bell? When all of these items are done regularly and accurately, your business can experience growth from stronger business decisions to compliance with regulatory agencies. Additional benefits include freeing up space in your busy schedule to timely completion of regular bookkeeping activities. You don’t need to be a large enterprise to enjoy these benefits. In fact, many small to mid-sized businesses take full advantage of the opportunities an outsourced accountant provides. For more benefits specific to your business, reach out to BUSINESS today for a consultation.
How Can You Take Advantage of This Shift?
Understanding the shifts you can expect to see as a business owner going into 2022 is the first step in taking full advantage. When looking at employee requests for remote work capabilities, are there room for improvements in your company? Tasks like accounting, human resources and any other “desk” job can be converted to remote work. However, if a fully remote workforce is not appealing to you as a business owner, consider a hybrid method with a certain number of days in and out of the office. This is a good compromise to attract needed talent, keep current employees happy and boost productivity margins.
Furthermore, dive into what functions of your business can be outsourced for a lower price. If you are a small to medium sized business, consider outsourcing customer support so you can focus on other important areas of the business, such as attracting new customers. COVID showed us how unreliable the current workforce can be with new demands and opportunities pulling talent in all different directions. Outsourcing accounting can help solve the staffing issue by allowing you to focus efforts on filling other positions that add more value to your company. As 2022 comes rolling around, be fully prepared for these new shifts and take full advantage of the possibilities for business growth and new potential.
Sources
Dautovic, D. “15 Must-Know Outsourcing Statistics for 2022.” fortunly, 6 January 2022, https://fortunly.com/statistics/outsourcing-statistics/#gref. Accessed 10 January 2022.
Sneader, Kevin. “The next normal arrives: Trends that will define 2021 – and beyond.” McKinsey & Company, 4 January 2021, https://www.mckinsey.com/featured-insights/leadership/the-next-normal-arrives-trends-that-will-define-2021-and-beyond. Accessed 10 January 2022.
Steward, Jack. “The Ultimate List of Remote Work Statistics for 2022.” findstack, 6 December 2021, https://findstack.com/remote-work-statistics/. Accessed 10 January 2022.
