COVID-19 Survival Kit: Cloud Accounting And Outsourcing Services
Why Cloud Accounting Is More Popular Since The Pandemic? And How Outsourcing Can Support Your Business?
Cloud accounting is not a new business innovation. It started with the first cloud accounting solution, Xero since 2006. In the past, companies have always viewed it as a new solution made for more advanced enterprises. Many SMEs especially put it on the back burner, focusing on other urgent priorities for their business growth.
Within the past year, the pandemic changed the situation. Priorities were flipped. A global crisis was the perfect set-up to showcase the superiority of cloud accounting over the traditional accounting system. For SMEs, all of the reasons preventing them from switching to cloud accounting solutions, become the motivators to adapt to a new norm to ensure the survival of their businesses.
1. “The existing system is broken.”
One of the main barriers of converting to cloud accounting was that the traditional accounting system was working fine — It was not broken, and businesses didn’t see a need for a “fix” or upgrade. It was a solid 6/10, albeit slightly outdated. Cloud accounting merely bumps it up to an 8/10 with its efficiency benefits.
As countries start going into lock-down situations like a circuit-breaker, companies have weeks or days to find alternative solutions to ensure that daily operations can continue to run. Being forced into remote working, accessing hardcopy documents or bookkeeping from snail mails have become unproductive or virtually impossible. The traditional accounting system starts to reveal its weaknesses, and functions like an unreliable 3/10. This often ends up in cluttered, disorderly inboxes and frequent miscommunication over the phone or video calls. Switching to cloud accounting systems then, becomes increasingly attractive.
2. “I can’t get hold of people or documents when I want it.”
Traditional accounting systems allowed real-time verification of information. You know where and when to find your staff or vendors, and vice versa. These are often done face-to-face when amounts are huge or when it’s a new expense. There is an established level of trust when information is passed via those tried-and-tested real-time communication channels.
Losing the face-to-face interaction has resulted in delays, miscommunication, mistakes, frustrations, and in turn lost trust. It demanded last-minute new standard operating procedures like email records to compensate for accountability loopholes. The previous system was not designed to cater to remote working situations. When the backbone of the business operations is dysfunctional, it loses its ability to withstand impacts during turbulent times. This is where cloud accounting shines — it ensures business continuity with remote workforces and supports seamless online collaboration, even within a pandemic situation.
3. “There is a higher demand for online services.”
Businesses offering online platforms or services are seen as the trend-setters, not as the norm. Customers who demanded those services are typically the young or the tech-savvy, and restricted to certain industries. Whenever a new change is introduced, there’s bound to be resistance from various stakeholders.
With the COVID-19 pandemic, everything has to be shifted online as physical supply of many goods or services are not readily available. Digitalisation is no longer limited to a selected group of early adopters. When the masses have to learn how to do everything online, online business services boomed overnight. This change in purchasing behaviour has led to all stakeholders — customers, staff, suppliers, partners, government agencies, unanimously embracing online services. Online shopping & entertainment, home deliveries, video-streaming, e-learning, virtual troubleshooting and more are adopted with unprecedented openness. The ease of transitioning into cloud accounting helps to accelerate the process of shifting businesses online.
How Outsourcing Complements Cloud Accounting
The case to go into cloud accounting for SMEs is overwhelming since the pandemic. As companies invest in cloud or SaaS services, the benefits of outsourcing solutions have become more apparent.
1. Efficient deployment of human resources
Just like how cloud computing reduces the need for tech support from IT personnel, cloud accounting enables you to streamline your accounting needs. Instead of a hiring or firing decision during uncertain times, you can scale up or downsize your business by adjusting your accounting package. Outsourcing mundane tasks such as bookkeeping and administrative work also enables you to focus on higher priority business actions, adding more value to your business growth in the long run.
2. Real-time accessibility anywhere
Because anyone can view data, access bank accounts, track inventory, expenses, sales etc. anytime and from anywhere, cloud accounting is really made for work-from-home situations. This means even if you outsource to a third party, all your accounting and compliance-related matters can be kept updated without having an in-house accountant.
3. Automate work processes and eliminate paperwork
Cloud solutions not only remove the costs of keeping hardware and software in-house, it also helps SMEs work smarter and more efficiently by saving time to manually sort out bills and expenses. With outsourced corporate service providers, your online accounting system is set up from day one with perfect accuracy to eliminate erroneous entries and tedious transaction reconciliations.
4. Wide range of expertise in accounting and corporate services
For small businesses, relying on one accounting staff to keep up with changing business policies is a tough order, especially during the pandemic when fast business decisions need to be made as new regulations are announced from time to time. Because outsourced accounting service providers serve several clients at one time, they continually improve their qualifications and skills to stay competitive, and are in the know regarding the latest business trends and regulations. Having a high level of professionalism and accuracy ensures the sustainability of their business contracts.
Get the full advantage of cloud accounting with outsourcing services
In today’s unpredictable economic climate, cloud accounting keeps small businesses lean and agile for nimble business growth. By outsourcing your accounting and administrative support needs to a trusted service provider, you are gaining a reliable business advisor to provide practical, effective solutions for the long haul.
Connect with us today to find out how Mighty Glory Corporate Solutions can support your business operations as your trusted outsourced partner during these uncertain times.