2020 COVID19 has forced the world to change at gun point. It is the new beginning and an end to many on our way of life. Going through the predictable motion of life has come to a cross-road to all. We fear for the unknown virus that can ambush without notice. Certain industry will rise and others fall. Companies and employees who adjust to the “New Norms” will survive. We have seen white-collar staff and professionals, organizational meetings, schools and classrooms, entrainment TV shows, religious services starting to operate remotely. Social distancing is becoming the norm without losing human contact. In a matter of time, businesses will come to the realization that they do not need lots of office space. On the greater good; this result in less traveling, less pollution and the earth are getting cleaner. Most importantly, it saves cost to the employer and employees. Existing technology make this possible.
What will be the “New Norms” moving forward? Those who worked from home during COVID19 can expect to work from home. Be it be full or part time varies according to industries and companies. Demand for office spaces will decline while industrial spaces and medical labs demand will remain because humans are needed there. Companies will downsize on office spaces to save cost while having white-collar employees work from home. Meeting remotely via apps like Zoom will become the norms. For human gatherings, part time bigger meeting spaces will likely see increase demand.
Where do these leave businesses on financial reporting?
For companies who are currently using cloud technology for their accounting, the transition is much less challenging for employees to work from home. New structure of cloud workflow, communication and information sharing will be in the future. However, those who are still using desktop, they will undergo a period of adjustments or metamorphosis. Change is in the future.
In urban city like Vancouver, office space rent at $15-$45 per square feet depending of office class B, A, AA, AAA. That works out to an average of $250 per month for a 100 sf space for one employee to work comfortably. For $250/month, remote bookkeepers can possibly prepare financials for an average $150,000 yearly revenue company.
The advantages of outsourcing bookkeeping are many to count. One of them is one less employee to manage, one less regulatory payroll obligation and best of all it is scalable. Meaning, you can pay more or less depending on your business output.