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The UK Government had been proactive in responding to the ongoing economic downturn caused by the Coronavirus pandemic. It announced the Job Retention Scheme that allows companies to retain their employees by furloughing them, in which case the government will be covering 80% of furloughed employees’ usual monthly wage up to £2,500 a month. 

However, as businesses are getting back slowly and steadily, Accounting firms need a Business Continuity Plan(BCP) to get all geared up to help businesses get back on their feet. But with employees furloughed to be paid until October and many away on sick leaves, it is going to be a tough walk for Accountants and Accounting firms to deliver 100% to their clients while they are short on manpower since furloughed employees aren’t allowed to do any work, not until July at least.

So let’s discuss in detail how Accounting firms are in a tough spot and how Outbooks can help you:

How furloughed employees are affecting Accounting practices:

Extension of the furlough scheme

While accounting firms can call their furloughed employees back, however, employees should have agreed to it during the initial signing of the agreement. And with the extension of the furlough scheme until the end of June has made it difficult for Accounting firms to cope up with the workload, specially when businesses are starting to get back when financial reporting and efficient cash flow management is needed.

Social Distancing still needs to be followed for available employees

Even though employees that weren’t furloughed are available to get back to work, social distancing is still a priority for everyone and many employees are using sick pay leaves to avoid getting back to work which in turn leaves Accounting firms with loads of work to handle with very limited resources. 

Fear of the pandemic is still here 

Following up on the above point, since the pandemic hasn’t gone yet, the fear of testing positive is still there in people’s mind and therefore they don’t yet wish to get back to work. While they aren’t wrong to care for their health first, Accountants still need help and support to aid their clients during these tough times. 

Rising Accounting needs for businesses

Since businesses are returning, Accounting needs are rising too as businesses need to figure out their financial position and plan for long-term accordingly. While businesses need Accountants as their trusted advisors now more than ever, the lack of manpower has had  Accountants in a difficult position. 

Remote working culture is still new to the profession 

While many businesses, especially the IT sector has adapted to the remote working culture quite well since it hasn’t been new for them, Accountants are still figuring out ways to increase productivity in remote teams. However, while Accountants figure out how to be more efficient, they still need a mitigation plan to ethically deliver accounting services to their clients.

How sick leave coverage is affecting Accounting practices:

Apart from furloughed employees, full-time employees that are paid via the PAYE by the Accounting firm are to be paid  £95.85 a week – is paid by employers for up to 28 weeks as SSP(Statutory Sick Pay). Even though this comes as financial support for employees, the Corona fear is still forcing many employees to self-isolate if they see any symptoms. And while, it is in no way wrong to be under self-isolation for, businesses and Accounting firms are undergoing skill shortages.

How can we help:

Every business including Accounting firms needs a Business Continuity Plan(BCP) to tackle the above issues. And we can help you.

With Outbooks, Accountants can outsource their Accounting and Bookkeeping needs and fulfil the shortage of skilled employees. With over 10+ years of experience in assisting Accountants, we can take care of the following tasks for them:

Moreover, with our virtual services, we can deliver end to end Accounting and Bookkeeping solutions for remote places efficiently. While you have enough to take care of already, let us take care of Accounting and Bookkeeping needs of your clients.

Contact Us Today:

+44 (0) 330 057 8597

[email protected]

by:
Bitnami