Outsourcing Benefits During the Coronavirus Pandemic
The World is in the grip of a Pandemic that has brought not only businesses but entire continents into a state of uncertainty. Governments are locking down Countries in an attempt to contain the virus, many events are canceled, schools closed. The UK is suggesting that people over 70 self-isolate for four months!
It is clear that the effects of this Pandemic will be far-reaching on businesses worldwide. In the eschewing months, many will need to consider their organization’s survival by drastically cutting overheads until the virus no longer remains a threat. It may even mean that businesses will be forced to lay off large proportions of their workforce.
This poses the question: how do you maintain the level and quality of service during a crisis when you also know that your company’s survival means that you will be making key elements of your customer service functions redundant?
Outsourcing is frequently a sought-after value for money alternative to address the back-office functions of a company. Why do it yourself when others can do it better and cheaper than you can?
- Accounts payable – Purchase to Pay
- Accounts receivable – Quotation to Cash
- Reporting from valuable P&L, Balance sheets, and Cash Flows to more detailed management information, analyses and KPI’s
- Payroll for both mainland and Free zones
- HR management particularly for quick and efficient off-boarding
Your business service level is likely to be unaffected but at a fraction of the cost of employing a full suite of staff.
Entrepreneurs should consider using the downturn as an opportunity to look at their processes to see whether they are as efficient as possible and how much could possibly be automated. It is usually quicker and more results-driven to have an outsourcing firm do this for you. Significant value can be added through Business Process Re-engineering exercises.
Many entrepreneurs trade without business plans, or any view of the future and what possible risks lie ahead. With the current COVID 19, the road ahead is likely to be rougher than it once was. Without understanding imminent hazards, there will be little hope of planning to mitigate these obstacles. It will be more than likely we witness many SMEs going into liquidation over the coming months.
If as a business’ owner, you do not have the time or skillset to build a business model and strategize about maneuvering around the pitfalls in your path, this too can be outsourced:
- Systems Review
- Business Process Re-engineering
- Cash flow planning
- Business planning and budgeting
- VAT Consultancy
- Variance analysis
Usually, the above activities can be outsourced to one person, a virtual CFO, who can be employed as often as you like: for several months or just a few days during critical periods. These individuals have a wealth of experience from decades of working in the finance field within several industries. The advantage here is that the business owner has access to real experience and know-how for the fraction of the cost of a junior accountant, but will add significant value far beyond the cost of engaging the v-CFO.
If you are looking for strategic guidance on a more consistent monthly basis, many companies employ a Non-Executive Director (NED) who will attend your monthly board meetings, offer sage council and ensure the companies governance is robust and effective.
During rapid economic change, you may be presented with earlier unseen opportunities; perhaps a competitor sees strategic value in buying your company, or indeed you may see an opportunity to consolidate your position in the marketplace by buying a competitor. There is huge value in outsourcing the preliminary steps to buying or selling a company.
- Due diligence
- Company valuations
- Data Room population
- Behavioral training to face investors
PARTNER & DIRECTOR OF ACCOUNTING & CFO SERVICES
A seasoned chartered accountant with over 20 years’ experience in managing private, public and PE/CV backed organisations. Valued for combining strategic planning with tactical delivery through change management, systems integration and performance measurement in a variety of industries including FMCG, Manufacturing, construction, e-commerce and hospitality. Extensive exposure to cross-cultural practices and international business protocols, particularly in North America, UAE and South East Asia. Experienced in cost control, forecasting, business improvement and efficiencies designed to secure and improve profitability in rapidly changing Global settings.