The financial crisis of 2008 is the biggest economic disaster to have hit the global economy since the great depression of the 1920s. Many large banks were obliterated in a single day, stock markets plummeted to an all-time low, jobs were lost, and unemployment was at an all-time high, and the global economy especially the US economy bottomed out.
The recession sent a global shock wave and the world has experienced the true effect of the economic devastation caused by the great depression. Naturally, the firms all over the world copped a severe blow on their sales and finances. Every firm shelved its new projects, fought for their survival and their recovery mode was ON.
And do you know what helped thousands of companies survive during the 2008 recession?
Answer: Outsourcing.
Yes, the Outsourcing industry had single-handedly helped tens of thousands of companies around the world in weathering the global financial crisis of 2008.
Interesting, right?
But how is it so relevant now? And how does the Outsourcing industry hold the key to survive the global recession? Why outsource your bookkeeping & accounting services? We know you got a list of queries and we have all the answers.
Read on to know:
Impact of COVID-19 & the Incoming Global Recession:
While the 2008 financial crisis started in the US has taken its time to reach the rest of the world and as a result, the disruption happened in stages giving a forecast for the other countries to take measures. And yet the recession dealt a heavy blow to the global economy. Now imagine the devastation that can be caused by the Corona pandemic owing to the fact that it has had a jolt like an effect on the global economy and not even economists cannot predict the end of the downturn.
The Corona pandemic has brought the entire world economy to a stand-still and plunged the world countries in a deep recession which is far worse than the financial crisis of 2008. This COVID-19 crisis has completely disrupted the supply chains, evaporated the demand cycle, led to plant closures, and has severely impacted every sector of the economy.
We are already in the recession, right now and it is predicted to be more devastating than the 2008 financial crisis.
Fortunately, the US government has taken swift measures to alleviate the crisis with a slew of tax provisions, loans, and economic aids for businesses, and stimulus packages with the CARES Act. Now it is the responsibility of the businesses to take all the measures possible to stay afloat during this recession.
Taking the Leaf out of the 2008 Recession – Outsourcing Your Way Out of the Crisis:
As the firms copped a heavy blow on sales and finances, the first and foremost measure taken by any firm is to save money, improve productivity and guide the firm towards the right direction with limited resources available. And outsourcing is the solution to accomplish them without hurting your core business. Every industry that has outsourced their non-core businesses has not only improved work efficiency at low cost but also have enhanced their productivity in their core business.
The First Step: Outsourcing Bookkeeping & Accounting Services
Every firm houses an accounting department that dedicates itself to track and keep the finances in order and give a clear picture to the firm to direct the financial resources as efficiently as possible. However, when financials are in severe disarray and the revenue has shrunk to an all-time low, the older financial model and business plan, may not support the in-house accounting department.
Nonetheless, bookkeeping and accounting services are the pillars of the financial well-being of the company. And yet they are non-core aspects of your business, hence you need an expert who is flexible enough to work on-demand to help you with your bookkeeping and accounting, read: you need to outsource your bookkeeping and accounting services.
Outsourcing your bookkeeping and accounting services reduces the expenditure, improves the work efficiency, reduces the burden off your employees, and help you better focus on your core business.
The financial crisis of 2008 and subsequent economic upswing over the next 5 years is a testament to the benefits provided by Outsourcing the non-core business functions.
So, outsourcing your non-core businesses like bookkeeping and accounting services can be one of the most effective measures that can help businesses stay afloat and trigger the business growth in the years to come. If you are business looking to leverage the benefits of outsourcing the bookkeeping and accounting services, Outsourced Bookkeeping is always at your service.
Having worked with hundreds of businesses around the world, we are experts in providing a complete set of bookkeeping and accounting services based on your requirement, at an affordable price point. You can find us here: https://outsourcedbookeeping.com/