NAPEO PEO Insider: Budget Considerations for a Post-Pandemic World
The National Association of Professional Employer Organizations recently published an article by G&A Partners Chief Financial Officer Dean Andersen that discusses "New Budget Considerations in a Post-Pandemic World." In the article, Andersen discusses key learnings from 2020 and dives into important considerations for PEOs as they prepare their budgets and make 2022 financial forecasts.
“For those of us responsible for budgets, budget-to-actual comparisons, and managing based on the differences, it seems clear that for the next few years we will need to be more flexible than ever in the way we deploy our human capital and all related costs, including office space and overtime,” he writes. “The holy grail for accounting is a clear understanding of true client profitability. That means knowing how much time is spent on each client. It may take a paradigm shift for some PEO employees to accept that they must record time spent on clients, because without that information, it is impossible to know true client profitability. That leads to challenges in budgeting for employee costs.”
Read Andersen’s full article in NAPEO's August 2021 PEO Insider to learn what else PEOs must consider as they chart the course for their post-pandemic futures.