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The coronavirus (COVID-19) outbreak has caused a global natural emergency, impacting the global economy. Every sector in the economy has been affected including trade, investment, IT, Tourism,
finance, etc.

Small businesses are major pillars of the UK economy. Business owners reported decreased turnover (66%), customer demand (58%), workforce (56%), and cash flow (60%) as the most important negative consequences of the pandemic.

There are more than 5 million small and medium-sized enterprises (SMEs) in the UK that have been severely impacted despite several government measures. According to the Business Emergency Resilience Group (BERG), small and medium businesses employ 16.1 million people in the UK, which is 60 percent of the UK population.

How are SMEs doing in COVID19?

Based on the research conducted by Aldermore, SMEs in the UK have lost 30% of their monthly business revenue during the pandemic. Both supply and demand side firms have been affected. Companies operated with a reduced workforce, shortages of raw material and intermediate goods.
The reduced spending resulted in a dramatic fall in market demand. As per the Aldermore research, two in five SMEs in UK, (i.e. 51%) adjusted their business strategy with cost-saving initiatives in the very first phase of lockdown.

SME Resilience strategies helping the economy bounce back

To everyone’s surprise, with each passing month, SMEs appeared to have recovered more strongly than expected. Companies demonstrated significant resilience strategies with different modern solutions to cope with changing horizons. The study by Hitachi Capital Invoice Finance states 79 percent of business owners shifted to the work from home (WFH) model.

Businesses are striving consistently to keep employee engagement rate high even using the work from home system. Several communication channels such as Skype, Zoom, Google meet, and Microsoft Teams are widely used by large, medium and small firms.

According to the Economic Recovery Survey, one-third of SMEs operating in work from home modules are planning to continue remote working even after the pandemic. On an average, revenue for SMEs crashed 6.6% during the last six months. Cost-cutting measures like work from home will reduce unnecessary expenditure in infrastructure rent, maintenance, food and electricity bills.

This new working pattern has brought great flexibility in working for employees and the company as well. The available digital technology is capable of providing a responsive work environment for employees. Small firms are proving to be more agile and adaptive to the changing circumstances by investing in technology to retain productivity and high standards, even with a smaller workforce.

Corient’s support for SMEs

Corient launched an initiative for small businesses impacted by Covid-19, offering a reliable technology for an end-to-end solution for its accounting clients. It is outsourcing the accounting and bookkeeping services for finance and accounting companies to continue delivering even in these tough times.

We reduce manual work by replacing it with accurate and quick automation alternatives for Accountants and Accounting companies. This digital transformation will enable firms to recover revenues by supplying services without human intervention and without enhanced salary costs. This will provide a responsive solution with faster results to its clients.

Even though severely impacted by coronavirus, many positive steps are being taken by businesses to become more resilient. SME business owners have regained confidence in the economy.

They have a positive outlook and intend to survive the pandemic and grow during the next few months.

How we see the future

Regardless of the current challenges, most SMEs are using every opportunity to deliver services to their clients using smart and efficient technology. UK SMEs have exhibited strong resilience during the pandemic, building strong ties to help each other move forward together.

As always, there will be new challenges to face but SMEs in the UK should be able to sail through with a comprehensive and focused business strategy and quick adaptability. For more features offered by Corient, stay tuned……

Outsourcing remains a big support strategy when you are growing or facing a downturn. Outsourcing of Manufacturing, Information Technology, Services including Finance and Accounting Services are client’s every year, a couple of main reasons for outsourcing over and above cost savings are 2 S- Scale and Specialization. Whatever, the business cycle you may be in, it’s always better to look Outsourcing as an option for achieving Cost Reduction or Scale or Specialisation. When you are looking for Outsourcing as an option, here are some of the factors you should consider before selecting Outsourcing Partner:

• Trustworthy:

Outsourcing is a long-term relationship and Trust and Communication are 2main ingredients for any successful relationship. Few of the ways to establish trust are as follows:

• Company Age: How many years the company has been business. The longer they are in business, trust factor will be high and they will honour the commitments they make

Types of Clients: What is the existing set of clients. Does the company have diverse set of clients in terms of numbers and experience?

References: Does the company provides references of its existing clients proactively

• Communication:

Assess the communication structure of the outsourcing company. Does the company proactively reach out about improvement initiatives, cost reduction ideas, internal controls, mistakes made etc. The communication structure/ Governance Structure can play an important role for making outsourcing company a Strategic Partner in your business

• Management Team Experience:

Great Leaders don’t just tell you what you do, they also guide you through. This is true for any Organisation you are going to work with. Assess whether the Management Team has the right mix of people with diverse backgrounds. If you are going to outsource Accounting work, check if the Management Team has Chartered Accountants and has rich experience working with large accounting firms such as Big4, etc. If you plan to outsource Management Accounting, check whether the Management Team has MBA’s who can guide you through to Managing Business

• Culture of the Company:

As Peter Drucker points out, ‘Culture Eats Strategy for Breakfast. Get Culture Right first, Success will follow’. Outsourcing is a long-term relationship and not just a short term bandage for your pains. It’s important to assess if your Outsourcing Partner has the right culture that fits into your company’s culture. There are several types of cultures including Customer Oriented, Innovation Driven, Respect Individual, etc. Some of the companies have only had profit Oriented Culture.

• Talent Pool:

One of the anonymous quote that reminds me is ‘I am not Afraid of Storms for I am Learning How to Sail My Ship’. So is true with any Knowledge based Industry. Before you outsource, check what kind of Talent Pool is available with the company. Does the outsourcing partner have internal education programs to create a strong talent pool? Assess whether the team has Chartered Accountants, Accounting Graduates and there are right internal and external training programs. If there is a right kind of talent pool available or training systems, you know you are in Safe Hands.

• Certifications:

Assess if the Outsourcing Company has right certifications such as Xero Champion, Quickbooks Certified, Sage Membership, etc. If the partner is certified, this will certainly help in ensuring your processes are managed efficiently.

• Data Security:

Data Security is of Paramount importance and many of the companies do not have right data security policy check. Check if the outsourcing company has right Data Security Policy including Data Security Certifications such as ISO 27001, etc.

• Technology Expertise:

Never in history, Technology would have played so significant role in our daily lives and day by day human kind is getting controlled by technology. While it’s important to have right talent and certification for managing your accounting processes but at the same time it’s important to have outsourcing partner who can develop applications, technology to make the processes seamless and efficient. Assess if your outsourcing partner has right kind of Technology Team to support any application development to make processes efficient

• Geographical Location: 

It’s important that your outsourcing service provider is based in right location. Check if they have near shore, on shore presence so that they are available at shout if any problems were to arise

• Flexibility:

Determine if your outsourcing partner is rigid or flexible in their approach. Usually, outsourcing contracts are in place for a number of years. Over time a situation may arise that necessitates renegotiation of the contract. The partner must be flexible enough to understand its client’s concerns and act accordingly.

With Making Tax Digital knocking the door, additional compliances and ever increasing demand for Value Added Services by clients, Accountants are being stretched in every direction.

Further, Payroll though straight forward process is not managed in most efficient way due to last minute information and changes by clients. One of the best solution is to outsource your payroll.

Here are 5 Top Benefits when you outsource your payroll function:

Focus- You are able to focus on your practice rather than getting carried away in transactional work

Costs- You are able to reduce the costs of payroll operations thus making it more profitable

Value Added Services- Your staff which does multitasking of Book Keeping, Year End as well Payroll can focus on their core area and provide value-added services to your clients

Hiring and Training- You need not hire any additional staff or train them if you get additional payroll business.

Turnaround Time- With outsourcing, all services are delivered in agreed timelines so you do not need to worry about any delays in payroll processing

No matter how profitable your business may appear on paper if you’re not simultaneously keeping an eye on cash flow your business could be heading for trouble. Reliable cash flow is just as important as profits – if not more so – to the long-term sustainability of a business.

The crucial factor for maintaining a business is to ensure that cash flow continues in lean as well as profitable times.

Corient helps, manages the accounting department of the business houses by providing Book Keeping, Payroll and other services on a real time basis on various softwares including Xero, SageOne, Quickbooks, Freeagent, Kashflow, XeroWorkpapers. Our accounting services help businesses to take the right decision and ensure their growth through accurate and timely financial data.

Please feel free to get in touch with us at info@corientbs.com free consultation on how you can increase profitability of your business by adding service lines.

Making Tax Digital is a revolutionary step by HMRC and Accountants have no choice but to embrace Making Tax Digital either voluntarily or by compulsion when HMRC reviews it again.

This requires Accountants to shift their Paradigm and further shed old habits and embrace digital habits.  As discussed in the previous blog, accountants can embrace Making Tax Digital 5 Steps.
In this blog we will look at the first step: To make Master Client List.

Click here to download the Master Client List template.

Corient helps, manages the accounting department of the business houses by providing Book Keeping, Payroll and other services on a real time basis on various softwares including Xero, SageOne, Quickbooks, Freeagent, Kashflow, XeroWorkpapers. Our accounting services help businesses to take the right decision and ensure their growththrough accurate and timely financial data.

Please feel free to get in touch with us at info@corientbs.comfree consultation on how you can increase profitability of your business by adding