In times of economic uncertainty, businesses need to be able to adapt quickly to survive. One fundamental way to accomplish this is through streamlining operations and cutting costs where possible. One area where businesses can find significant savings is by outsourcing their accounting and finance functions. Not only can outsourcing accounting help save money, but it can also help businesses become more efficient and resilient in the face of a recession.
In this post, we’ll explore five key benefits of outsourcing accounting and how it can help recession-proof your business.
1. Lower Costs
Accountants are not traditionally revenue generators for a business. This makes it difficult to justify hiring an entire accounting department. Outsourced accountants often come at a price lower than hiring a Chief Financial Officer. Not to mention, when you outsource to a CPA firm, you get an entire accounting department for the cost of one employee.
2. Less Overhead
When you outsource your accounting function, you are not only saving on the employees’ salaries, but you are also saving on general overhead. You don’t have to pay benefits, paid time off, rent office space, or handle the human resources related to this function. Oftentimes, outsourced accounting also comes with a full technology stack as well. While there are fees associated with these technologies, you don’t have to manage the training or maintenance of these systems when outsourcing.
3. No Turnover
Because you have outsourced the full function of accounting, you don’t have to worry about the staffing of the department. Since the pandemic, it has been difficult to hire and retain employees, so why worry about your accountants as well? When you outsource your accounting, all staffing responsibilities fall to the firm you contracted with.
No two companies have the same accounting needs, and it can be difficult to know what your company needs to be successful. That’s where accounting firms can step in. Not only are you able to select the level of service you need, but you can change it if your financial situation changes. Many clients come with a bookkeeper on staff, so the engagement starts with a lower level of service. If the bookkeeper leaves, it is a seamless transition for that work to be absorbed by the accounting firm.
When you hire an outsourced accountant, you do not only gain the expertise of the accountants assigned to your work, but you also gain the expertise of all of their resources. Accounting firms have resources and contacts available to them that may not be available to the business.
Investing in an outsourced accounting team can offer a wide range of benefits for businesses looking to recession-proof their operations. Outsourced accounting can help businesses weather economic storms and emerge stronger on the other side by reducing costs and overhead, limiting turnover, and providing flexibility and expertise. Whether you’re a burgeoning startup or a large corporation, consider the advantages of outsourcing your accounting and finance functions to a trusted third-party provider. With the right support and resources, you can position your business for success both now and in the future.