Farwah Jafri | January 5 2023
Business success relies upon the business owner’s ability to survive testing times and cope with rising costs. Inflation has led to the downfall of many firms and continues to derail more from the winning track. The year 2022 was the most inflated in recent times, with the average inflation rate in the USA rising to 7.1%.
Sadly, there isn’t much you can do to turn the tides except find ways to continue progression amidst the ongoing economic turmoil. A time-tested trick to do is to outsource. Not only does it help you run your business efficiently, but the low outsourcing cost also helps relieve the added stress.
Outsourcing non-core business functions like administrative tasks and business accounting is a surefire way to cope with rising costs and combat inflation like a pro. So, let’s delve deep and learn how you can do so. But first, it’s a must to know the outsourcing cost.
To better understand the cost benefits of outsourcing, it is best to match it with the cost of in-house services. A massive cost associated with an in-house team is the overhead cost. In plain words, day-to-day expenses. An in-house team takes up space, uses utility, and their wages include added benefits like insurance and paid leaves.
No such costs exist with outsourced services. You only get to pay for the service and not a dime more. That alone slashes the relative expense of outsourcing down to a minimum. Nowadays, small and medium-sized businesses can hire outsourced accounting and bookkeeping services for the entire month for a few hundred dollars.
Not to forget, they get certified experts. Bet you can’t find an in-house professional having equal acumen who charges the same or less.
Another cost benefit linked to outsourced services is flexibility. You can expand your team as your business grows. You no longer have to worry about making up room for a new resource and the toil of hunting for a good one. With outsourcing platforms like Monily, you can expand your team through a single call.
Thus, low outsourcing cost is not the only reason you must switch. That said, it is time to discover four ways outsourcing can help your business cope with rising costs.
In times of depression, recessions, and economic slumps, it is not merely enough to have a low-cost team to manage expenses. It is also essential to have a skilled team. It is unwise to compromise on skills and expertise to save a few bucks, as the decision often pushes more trouble toward you. A better ploy is to delegate services to outsourced experts who add more value and cost less.
A feature of outsourced services that helps during inflation and beyond is access to virtually automated services. Virtual service providers like Monily only use the best and nothing less, particularly when it comes to software and tools. Resultingly, you enjoy innovative services like cloud-based accounting software to stay one step ahead of the curve. Typically, the in-house team uses dated software as they can function through wired networks in the office. More importantly, the need to automate arise when unexpected happens, like a pandemic. At such times, besides the low outsourcing cost, automation can help you stay safe from troubled waters.
With non-core business functions out of the way, you get more time to do things that help you generate revenue. Time mismanagement is ill, which has caused the downfall of many businesses when the going gets tough. Luckily, delegating non-core business functions like finances save you the headspace and time you need to walk forward with maximum attention and minimum stress.
Like service quality, security is another business aspect where making a compromise is no less a sin. During inflation and troubled times, the margin of error drops to zero. At such times, your business is one mishap away from going bust, and that’s why you need a solution that gets you better security for a lesser cost. Truthfully, it is among the top reasons businesses move to outsourced services besides low outsourcing costs and better flexibility.
When times get tough, the tough get going. That is a motto every business owner parades with pride to survive troubled times like hiked rates and inflation. By outsourcing the finance function to Monily, you can ensure your small or medium-sized business continues the upward motion unhindered and unfazed.
Low outsourcing cost plus the added flexibility provides your business with the impetus you need to level up. Work with top certified accountants, bookkeepers, tax consultants, and payroll experts, and run your business smartly. Remember, there always is an efficient way to run your business, and outsourcing is just that.
See Also: What Is A Cost Recovery Method
Farwah is the Product Owner of Monily. She has an MBA from Alliance Manchester Business School, UK. She is passionate about helping businesses overcome challenges that hamper their growth, which is why she is working at Monily to facilitate entrepreneurs to efficiently manage business finances and stay focused on growth.