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Private label partnerships allow CPA firms to access necessary infrastructure and resources without the costs associated with investing, hiring, and training in-house. A Harvard Business Review report, which studied small business impacted by COVID-19, found roughly 60% of respondents expected to open by the end of 2020. 30% felt it was somewhat likely they’d open by then, while 10% felt it was unlikely they would be back in business by year-end. These figures are consistent with a report by the US Census Bureau Small Business Pulse Survey released in May 2020. In the report, an average 31.4% of respondents expect their business will not return to normal operations for six months. The survey also showed a large negative effect from COVID-19 for 51.4% of respondents and an expectation that it will take more than six months for their business to return to normal.
While the world recovers from the pandemic, a private label partnership can help small businesses, including CPA firms, reach sustainability.
Given the challenges of COVID-19, small business recovery is faced with a double dilemma: 1) Operating within existing cash reserves, and 2) Struggling with the lack of trained staff caused by furloughs brought about by the pandemic.
Private label partnerships can assist by providing reliable infrastructure systems, including expertise, to execute deliverables.
1. Circumvent the worry associated with limited cash
Most small businesses have cash reserves that will last two weeks. Any new investment needed to increase staff or assist in recovery would have to be delayed. This impacts existing deliverables, potential new business, and overall operational capabilities of the CPA firm.
A private label partnership provides access to relevant resources. This allows recovering CPA firms to continue meeting deliverables without compromising on either quality or timeliness.
2. Leverage expertise without expenses
A private label partnership empowers firms to present clients with high-caliber work, delivered on time. Adding value is a bonus that businesses can present to their clients by leveraging the expertise they access through the partnership.
This is especially relevant during recovery, when cash-strapped businesses may lack affordable resources that are critical to address client needs and attract potential business.
3. Extend services and solutions offerings
Even as the private label partnership takes over existing deliverables and services, the ease and convenience of the arrangement can help CPA firms extend their service offerings. Given the nature of a private label partnership, the relationship enables partners to function as the back office of the CPA firm, reducing any service gaps, fostering trust through a consistent cycle of high quality work delivered on time as needed by the client.
The reliability of CPA partnership can lessen the typical challenges faced by small businesses, including those of industry trends, best practices, and associated expenses.
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