The coronavirus pandemic is a game changer, and its repercussions on many industries will probably last for years after it’s gone. Some of the ways companies have adapted might even become the new standard.
Yet, it still feels like an understatement.
Back office accounting is one of the main challenges we’ve seen companies facing. As most resources must work from home, accounting efficiency seems to take a hit. If you’re interested in learning why that happens, and what you can do to solve it, you’re in the right place.
Can accountants work from home?
As the Telecommuter Guide explains, yes, it’s entirely possible for accountants to work from home. In fact, many businesses outsource their entire back office accounting to offshore services, but we’ll get to that later.
In theory, there shouldn’t be any difference between working as an in-house and a remote accountant. That said, preparation and having the right resources available is what matters; this is where we see clients fail.
How has COVID popularized remote work for companies?
The CBC has a great article on how the current pandemic might have changed office work forever. Even as the quarantines around the world have flexibilized, a minority of workers have returned to their offices.
Most workers who adapted to their home offices have stayed that way even with less strict measures. Moreover, it seems like this trend isn’t prone to changing soon. Whether or not it’s due to health concerns or comfort it’s still to be seen, but the numbers are there.
It might change the future
It’s worth noting that the virus came just in a time where flexible work is a hot topic. Younger employees and managers believe flexible work is better, and that might tip the balance towards it.
It’s easy to believe working in the office means better performance. Managers can monitor workers in real-time, but that’s not always the case. Daily commutes can take hours with particularly bad traffic, and that means exhaustion that’s not present when working remotely.
The issue with working from home right now
The Stanford News site has a great article on how working from home might not be as good as we might think, at least during the coronavirus crisis. Economist Nicholas Bloom opens up saying that it might cause productivity slumping and even economic stagnation.
It’s worth noting that Bloom is an active supporter for flexible work. However, we can’t forget that context and preparation are vital to make this approach work. Ideally, working from home would improve focus thanks to less exhaustion, but that’s not what’s really happening.
What’s the problem? Well...
Parents need to double as teachers
With the COVID crisis, children also need to study from home. That means parents likely have to help them with their classes, which tend to take place during the parent’s working hours.
When flexible work faces discussion, supporters often assume children will be in school, thus allowing parents work without interruptions. If you’ve had a meeting interrupted by your kids screaming, you know that’s not the case right now.
Lack of preparation
We also need to consider what an accountant needs to perform their tasks. Ironically, some could argue that accountants would have an easier time working from home back in the day. They could just take the books home and catch up.
Of course, that’s an exaggeration, but today’s solutions still have their own challenges. Most companies use ERP systems for their back office accounting needs. If you keep an in-house accountant, they’ll likely not worry about setting up the company’s system on their home computer.
Other issues include not being used to working from home, having outdated equipment, bad internet, and more. The crisis hit suddenly, so a lot of people don’t have the commodities they need to work from home; not everyone has a home office, either.
Working from home isn't for everyone
Speaking of home offices, some people simply perform better from an office. Commuting to your office takes you to a “working mindset” that’s basically telling your brain it’s time to work. Some people might have problems focusing when working from home because they lack that stimuli.
The same is true for lacking personal interaction with your coworkers. Teamwork towards solving problems is easier when you can speak directly with others. Similarly, separating your work from your home life can be difficult already, and working remotely can make it worse.
How have companies offset this challenge?
Most companies had to overhaul their entire operations because of COVID. That made the difference between closing and staying on business, and working from home is part of many people’s lives today.
The World Economic Forum offers an outstanding article on how companies offset the crisis. If you’re facing problems with your back office, it’s worth taking a look. Some of the most important points are the following.
Retraining teams
Acquiring new skills—however minor they might be—is paramount for employees starting to work from home. Your back office accounting isn’t any different, as they’ll need to perform various additional tasks: troubleshooting, setting up your software, and more.
Needless to say, that’s a challenge. Many in-house accounting departments specialize in their tasks and nothing more. Once they don’t have your help desk readily available, productivity tends to take a dive.
Altering management
Management also faced a plethora of new platforms. Managing remote workers is an entirely different world from managing inhouse departments. This issue adds to our previous factor, as solving problems becomes a lot more difficult.
Most managers have zero experience with remote workers, and many workers don’t even know how to work from home. This lack of experience results in improvisation, which can lead to more mistakes.
Reducing control
In the end, companies simply need to trust their employees more than ever. Not having an overseer at all times means everyone has to make do, and you’ll need to trust your employees will get used to their new routine with time.
Of course, it’s a lot more difficult when working with resources without the experience necessary. That’s why modern management and collaboration systems are paramount for success.
Supporting wellbeing
Mental issues are at an all-time high during the pandemic. Anxiety, depression, and similar conditions are prevalent in most workers today. Not only is social isolation unhealthy, but the overall uncertainty around the world makes everything worse.
Mental health support programs are a necessity for many companies, and you should try to implement these methods into your own business.
Outsourcing during COVID: the ideal solution?
We place this option in its own section because of how unique it is. Information Age reports that outsourcing has become a main focus for many businesses. Offshore resources offer better resilience and adaptability: both are critical qualities in today’s workforce.
Outsourcing offers a large market with talents experienced in remote work. These resources usually have the necessary equipment and software in their home offices, so you can integrate them into your company almost immediately.
Outsourcing did take a hit, but it's looking promising
We must note that outsourcing hasn’t had an easy time during COVID. The CBI reports that COVID has been a huge negative for the sector, but it might become more relevant after recovery starts.
In fact, one of the reasons for that relevancy is precisely how many companies have discovered the benefits of outsourcing. Even those who’ve never outsourced their tasks are taking an interest in the industry.
Accounting is one of the best outsourcing departments
In fact, your back office accounting is a perfect candidate for outsourcing, as reported by BKD. We already mentioned how accounting has been a traditional outsourcing option for businesses, and COVID has only helped this fact.
Operational efficiency
Offshore accounting solutions have all the experience you need from a remote worker. All the obstacles from resources adapting to working from home aren’t factors with outsourcing.
We can speak for experience, as we’ve helped companies outsource their back office accounting before the epidemic. Our clients always enjoy professional resources without the additional expense.
Collaboration is easier
Today’s platforms have a plethora of communication and collaboration features. Our experience with platforms like MRI, Yardi, and Zoho taught us that remote work is a lot easier thanks to these systems. Real-time updates and editing are great examples of these features.
Saving on training
Finally, the most prominent advantage of outsourcing is the amount of experience and talents you can access in relation to the prices available. Outsourced senior personnel can be as costly as internal junior resources, thus saving significant money on training and onboarding.
With COVID, the outsourcing market has become a lot more secure. We’ve personally offered (and seen other offer) safety agreements to ensure clients can cancel or reduce the payment if they don’t receive their results.
Conclusion
Working from home wasn’t popular before the pandemic, and that resulted in a broken industry now that it’s necessary. The companies who managed to integrate their remote departments quicker gained a significant edge, and outsourcing seems to be one of the most effective ways to do so.