Outsourced Bookkeeping: A Smart Approach To Survive Economic Disaster 

accounting

The possibility of a devastating worldwide economic depression is growing as the pandemic’s intensity declines. IMF chief recently said there would be a good likelihood of a worldwide recession in 2023 as a result of massive inflation, a major increase in lending rates, a slowdown in China’s economic growth, and escalating sanctions related to the Russia-Ukraine war. Given these interruptions, which keep happening one after another, any firm would undoubtedly feel nervous. A flexible organizational structure, effective resource allocation, and lower overhead expenses are a few tactics to aid businessmen in surviving such economic downturns. When corporate activities are outsourced, all of these strategies are gathered under one roof.

Why It’s A Smart Idea To Outsourced Bookkeeping?

  • Having access to financial and accounting knowledge.
  • Prevent potential turnover and leave of absence difficulties.
  • Save time for the company. 
  • Acquire freedom to meet business needs.
  • Cost Effective and flexible.

The capacity of any company to sustain in the industry is determined by its financial status. Therefore, one of the key corporate processes that must be outsourced, particularly when a recession is on the horizon, is bookkeeping and accounting. Due to their propensity to handle their own accounting tasks, entrepreneurs may be inclined to cut bookkeeping services during a recession. However, in this situation, expert accounting support is considerably more important. A conservative approach to better manage a company’s finances is to outsource the accounting work. Almost all firms, regardless of size, can afford it and find it to be a wise choice. It is one of the trustworthy bases to keep companies afloat throughout a downturn in the economy.

What Are The Costs For Bookkeeping Services?

Role Cost Yearly Cost
In house 

(Full time bookkeeper)

$25 – $40 Per hour

(Plus, taxes & Benefits)

$50,000 – $80,000 Per Year

(Plus, taxes & Benefits)

Bookkeeping Service (Outsourced) $500 – $2000 Per month $6000 – $24000 Per Year

The advantages of outsourced bookkeeping are several. Professional knowledge, consistency of data, time management, safe bookkeeping, quality assurance, access to cutting-edge technology, and cost optimization are among them. When the world economy hit rock bottom during in the global depression of 2007–2009, many firms turned to outsourcing accounting or bookkeeping as a survival strategy.