Wajiha Danish | February 17 2023
The year 2022 saw the pandemic subside and record-high inflation steals the limelight. Believe it or not, the US is nearing a recession as the economy remains volatile and the GDP is on its way down. At such times, small and medium businesses need to be on their toes to survive the upcoming economic downturn, and outsourced accounting can help.
In this article, we will explore how outsourcing accounting and the finance function can help small businesses stay afloat amid the economic tsunami.
The first two quarters of 2022 saw the US GDP shrink by 1.6% and 0.9%, respectively. By definition, the country entered a recession. However, the leaders are steadfast in denial. According to them, a consecutive GDP drop is not the sole indicator of recession, and factors like foreign business investment and the employment rate also matter.
Even though the current economic state of the US is debatable, the perils ahead are undeniable. Many leaders, with the 2008 Great Recession and COVID fresh in mind, think another downturn is around the corner. So, it is best to learn the cheat code to survive the next recession.
Outsourcing the finance function to virtual experts is the perfect solution for small and medium businesses, the kind that braves the worst of recessions. Here are five reasons you must turn to outsourced accounting now, by choice, before the solution becomes a must.
The best way to counter slow business is to cut expenses. Undoubtedly, high operational costs are a cause of concern, especially for small and medium firms. The best solution is to cut these daily costs as much as possible, and outsourcing accounting is the best way forward.
Through outsourced accounting services, you can evade day-to-day expenses like rent, equipment costs, maintenance, and utility bills. Pay solely for service and not a cent extra. It is a time-tested trick to boost efficiency and survive recessions like a pro.
During a recession, you can ill afford to slip up. You and your team need to be at the A-game. Economic downturns require you to make bold calls and deliver maximum impact with the minimum number of people. So, productivity matters the most.
Truthfully, a team of virtual accountants is the most productive way forward. You need experts beside you to tackle challenges gracefully, and outsourced accounting services help you get the experts you need at a minimum cost. It is a surefire way to maximize productivity and make it through recessions.
Every buck matters, especially when cash inflow is slow. At such times, it gets hard to retain in-house employees. Why? Due to added benefits and perks. You cannot hire a full-time employee on merely monthly compensation. You must provide added benefits, like insurance, dental plan, a bonus, paid vacations, and other perks.
Delegating accounting services to virtual experts frees you from all such added expenses. Through Monily, you can have a team of professional accountants at your disposal throughout the year, with replacements ever-ready to ensure your business rides out the recession smoothly.
Outsourced accounting services help you get better results as you get to work with top-vetted industry pros. Moreover, at Monily, you always get more. You can rest assured your numbers are in perfect shape as they pass through multiple pairs of eyes to ensure no zeros ever get missed.
In simple words, outsourcing accounting services is a way to get better numbers and move your business forward faster. So, better results and lesser stress.
With the finance function in the hands of experts, you can use the insights to make better decisions. At times when business is slow, every decision counts. At such times, data-driven calls can help you manage the uncertainty better, while knee-jerk decisions taken in haste invite more trouble your way.
Outsourcing accounting provides you with the reports and insights you need to make timely and informed decisions during crunch times. When a slip-up is not an option, you need an expert behind your finances to guide you to glory, and the best ones don’t commute to your place but work virtually.
Outsourced accounting services are the best way to make your business recession-proof. You need to save every buck possible and have a clear head to ride your way out of economic downturns. So, don’t hesitate and outsource the finance function to improve your today and tomorrow.
Wajiha is a Brampton-based CPA, CGA, and Controller with 17+ years of experience in the financial services industry. She holds a Bachelor of Science Degree in Applied Accounting from Oxford Brookes University and is a Chartered Certified Accountant. Wajiha spearheads Monily as its Director and is a leader who excels in helping teams achieve excellence. She talks about business financial health, innovative accounting, and all things finances.