With the UK economy going through a rough patch, businesses are keener than ever to find ways to save money and stay afloat, and your accounting practice is no exception. While it may seem counterintuitive, investing in outsourced accountants during this time is wise.
After all – they were instrumental in assisting accountants like yourself to guide cash-strapped businesses throughout the pandemic. Now is an ideal time for you to take the help of a strategic partner who can guide your practice through the stormy economic seas of a recession.
In this blog post, we highlight some core talking points on how outsourcing helps accountants pave the way in this unpredictable day and age.
1. Proactive communication
The best accountants do not wait for clients to ask for advice. They go out of their way to share information that clients will find relevant. For instance, there could be government incentive programmes that certain businesses are eligible for and do not know about yet, which you can bring to their attention.
Outsourced accountants can support proactive communication with government agencies, helping your practice cruise through the often-complex landscape of government programs and aids. Especially during a recession, when government support can be a lifeline, having an outsourcing partner who can communicate effectively with the relevant authorities can be invaluable for your business.
They can share real-time information about new or upcoming regulatory changes and how those could affect your client’s business. In this context, Stellaripe accountants can implement systems that let you monitor all your clients’ accounts centrally and get real-time notifications on areas that require attention.
2. Focus on core competencies
During a recession, accountants must focus on their core competencies and provide value-added services to clients. By outsourcing routine and time-consuming tasks, such as data entry or transaction processing, you can allocate more time and resources to activities that directly contribute to your clients’ growth and financial well-being. This helps enhance client satisfaction and retain business relationships.
3. Real-time accounting support
Your practice is frequently only as good as the information it is provided. If you receive information late or it is incomplete, it puts more pressure on you to turn things around to provide the client with meaningful data. Regardless of how efficient your practice staff is, a little help never hurts anyone!
An outsourced accounting partner can address this by offering real-time support for your clients, including updating their books daily, flagging any concerning transaction, running payroll, keeping tax documents up-to-date and filing returns on time.
This may not make money directly, but it will prevent you from making costly mistakes later owing to incomplete accounts or improperly filed taxes. Real-time accounting also facilitates a keen eye on expenses and cash flow – critical during a recession when every penny counts.
4. Superior cash flow management
Having enough cash is critical for any business, especially during a recession, yet many struggle with managing their cash flow. If you are currently overwhelmed with an immense workload, let an outsourced accountant help you negotiate suitable credit terms, plan for timely payments and be strategic about the expenses incurred for your clients.
Moreover, Stellaripe’s expert accountants can set up automated systems to send out invoices and payment reminders to your clients so that money flows in as per schedule. In the challenging economic climate of a recession, effective cash flow management can be the difference between survival and closure.
5. Better risk and cost management
Any business decision can have multiple outcomes, especially during turbulent times. Outsourced accountants can help you choose appropriate responses to best-case and worst-case situations and explain why they work for you.
Armed with that information, you will better understand what choices to make, especially those that involve significant costs, reassess growth plans and navigate regulatory challenges. Outsourced accountants also advise on smarter ways to reduce debt and pay off existing debt.
This proactive approach to business planning and cost management can help your accounting practice stay afloat and thrive during a recession.
6. Greater scalability and flexibility
Recessions can be unpredictable, and businesses may experience fluctuations in their accounting workload. Outsourcing allows you to scale your operations up or down based on the current demand. You can easily adjust the level of outsourcing services to match the client needs without the burden of hiring or laying off your staff.
7. Increased access to specialised expertise
Outsourcing provides access to specialised professionals well-versed in accounting and financial services. You can leverage this expertise to handle complex tasks or projects that require niche skills, such as financial analysis, forensic accounting, or international tax compliance.
Outsourced accountants empower you to tap into specialised knowledge without investing in additional training or hiring.
8. Higher efficiency and business continuity
When you outsource your clients’ accounting tasks, it is one less thing for your in-house practice staff to do. Particularly for smaller accounting businesses, this can offer significant relief to their team members, who are free to engage in more critical, strategic tasks.
This helps maintain business continuity (as no one is chasing down bank transactions or frantically preparing tax returns at the last minute for their clients) and enables a more efficient allocation of resources.
With less overhead, you can use your resources better, improve flexibility, and reduce burnout among your practice staff. By bolstering operational and economic efficiency, outsourcing can help you weather the storm of a recession and emerge stronger on the other side.
9. Dependence on extensive technological proficiency
Many accounting practices still hesitate to invest in new tech because of the costs involved. But the truth is that investment can reap massive returns in terms of time and money saved and money-making opportunities spotted. The most obvious example is tech which automates daily processes and scales them up as the business grows.
Outsourcing can help your practice staff leverage this technology more effectively, enabling access to advanced, competency-based tools and software systems. By investing in adaptable technology via an outsourcing partner, gain insights into critical client financial data, improve accuracy, and enhance efficiency – essential in a recession-stricken business environment.
Over to you
There is no easy way to get through a recession. Its effects are significant and wide-reaching; unfortunately, not all businesses will make it through to the other side. Joining hands with an outsourced accountant can give your accounting practice the best chance of helping your clients to succeed.
Outsourcing is not just about saving costs; it is about harnessing external expertise and technology to drive resilience, efficiency, and growth. Get in touch with us to understand how it could be the ace up your sleeve amidst an uncertain economic landscape.