Accounting & Technology: 4 Lessons Learned from COVID

It’s been quite a while since created a new post. To say that things have been a bit crazy over the past couple months would be a ridiculous understatement. We feel like it has never been more important to put out valuable information that business owners can use to recover, grow and protect their businesses moving forward. 

This pandemic has taught as many lessons about the importance of the accounting function in our business. This post is going to discuss 4 lessons we have learned through all of this that we can apply to our businesses moving forward. Let’s dive in.

Technology and the Cloud

The use of technology has never been more prevalent than it is today. Most people are working from home and businesses have been forced to learn how to use new technology. 

Things are no different in the accounting world. Cloud accounting solutions, client portals and online bill pay are just a few of the solutions that have helped many businesses keep a good handle on their financials during this time. Businesses that haven’t embraced technology in the past are now seeing why it is important to do so. If you are in the latter category, today is the day to make a shift and start utilizing technology.

Timely and Accurate Financials

Margins are shrinking and employees are being laid off. It is vitally important as a business owner that you understand the financial implications of every decision you make. How can you know who needs to be laid off or who can stay if you don’t know how it affects you financially? How can you make better decisions as margins shrink so you can survive if you don’t know your margins to begin with? 

Another example relates to the PPP Loan. Businesses who had their financials in order and could produce information quickly had a leg up on the ones who didn’t. We saw how quickly those funds diminished. Being able to produce the information the SBA needed right away probably saved some businesses from closing their doors. I hope that we never have a need for another PPP loan in our country, but if we do, are you prepared get your information gathered in a timely fashion?

Remote Solutions

I have run into this issue many times over the last 8 years and that is, business owners wanting a company like ours to have a presence in the office to do our work. I get it. There is a level of comfort having someone in the office with you. However, what we’ve discovered over the years is that in most cases it isn’t necessary. Part of it goes back to #1 and embracing technology. We stay in constant contact with our clients via email, text, phone and video calls. While we aren’t physically there, we are very connected and present. 

Is there a time and place for an in-person meeting? Absolutely. But most of the work can be done remotely in a very efficient manner. 

Why am I bringing this up?

Having an in-office only solution has led to problems for many business owners during this time. They had no remote working solution and were forced to work from home. If you want to protect yourself and choose to switch to a firm like ours, great! If not, at least have a remote plan in place so that your accounting function can continue from any location. 

How Is Your Money Being Spent?

As mentioned before, many businesses are experiencing shrinking margins. It’s forced business owners to take a hard look at how they are spending their money. Every business owner spends something on accounting, whether that internally, externally or simply their own time. Now is a great time to re-evaluate the solution you have to make sure you are getting the most out of your investment. 

Conclusion

These are just a few of the things we’ve observed over the past few months. Whether you decide to make changes or not, I would at least encourage you to analyze your current solution. I pray another pandemic will not enter our land but there will inevitably be something that takes place in the future. Will you be ready?