Covid’s impact on accounting for service-based entities
Covid has been and continues to be a challenge for most industries and businesses of all sizes. During the 2008 economic downturn projects were delayed or cancelled, payments were delayed and at times never collected, and the service-based companies that were able to survive took years to recover.
Today’s environment has both similarities and differences. The speed with which the business world changed was extraordinary. Many employees went home for the weekend and found themselves working fully remote for the past year. The impact of that rapid change effected changes to accounting processes and human resources management across the board.
As with any situation, recovery provides opportunity for growth acceleration for service-based companies. According to AICPA (American Institute of CPAs), on-site service delivery has dropped from 54% pre-March 2020 to just under 40% in just one year.
Partnering with Sage Intacct has helped our team adjust with our clients in three key ways:
Visibility - Transparency in reporting supports financially sound decisions that need to be made at a granular level and rapid pace
Cash-flow management - Tightening processes for billing allows our clients to avoid lost revenue, bad debt, and increase cash on hand
Project financial management - Aligning your team with your goals keeps project costs under control and gets to you closer to delivering the planned profit
Why this matters? Getting things right can lead to massive improvements in your daily operations and long term goals. Our clients have seen the value of offloading back office operations. Knowing exactly where you stand and where you’re going is easy with the right partner.