4 Tips for Accounting Firms in an Uncertain Economy

While we may not officially be in a recession based on technical indicators, economic warning signs have been flashing in much of the Western world for several months. In April, the Consumer Confidence Index hit its lowest level since October 2011, following five straight months of decline. The U.S. Gross Domestic Product (GDP) decreased 0.3% in the first quarter of 2025, its first negative movement since 2022. In March, job openings fell to their lowest since December 2020, while major companies like Deloitte, KPMG, UPS, Starbucks, and Microsoft have all announced significant layoffs. 

The impact of economic uncertainty can be felt everywhere, but it’s especially apparent for accounting firms. The nature of accounting makes it closely connected to the health of the broader business market. But a shaky economy doesn’t mean that your firm’s business has to suffer. In fact, depending on the kind of clients you work with, your firm may even get busier during an economic slowdown.  

Below are four valuable tips to consider implementing to help your firm survive an unsteady economy or a full-blown recession. 

Strengthen accounting firm client relationships 

A good accounting firm always treasures its client relationships, whether they’ve been working with the company for many years or just a few months. But when things are busy and you have a lot of new projects or quote requests coming in, it becomes a little easier to take your existing clients for granted. You may not communicate as well as you used to, or perhaps you stop doing some of the small things that clients appreciate.  

No matter what the economic climate, you should value your clients and work to maintain good relationships with them. But it’s especially important in an uncertain economy, when each individual client may soon become much more valuable. You might take some extra time making check-in calls to clients, or send personalized letters or small gifts to show your appreciation. Not only will this help them value your firm as a service provider, it will also help build a personal connection – many of your clients are probably dealing with the same uncertainty and will appreciate being able to commiserate.  

Audit your accounting firm operations for unnecessary costs  

Like strengthening the windows and doors of a house before an incoming storm, now is the time to trim the unnecessary elements of your firm’s processes that are driving up expenditures. If it’s been a while since you last conducted an operations audit, consider doing one soon. Evaluate everything: office equipment, communication channels, client collaboration methods, etc.   

If possible, loop in the team members who work closely with your operations on a day-to-day basis. Now may be the time to implement that system change your staff has been asking about for a while. Plugging the leaks in these areas will cut down on costs while making your team more efficient, which clients and team members alike will appreciate.   

Look for discounts on regular accounting firm purchases  

Economic downturns are tough for everyone, but one of the silver linings is a drop in prices among goods and services for both businesses and consumers. For example, many companies have been running “tariff sales” on everything from luggage to airline tickets, in an effort to clear out existing inventory and increase cash on hand in the face of supply chain uncertainty later this year due to new regulations on imported goods. As spending tightens, consider areas where you might be able to secure more competitive pricing to help your firm’s bottom line.   

Some companies may also change their policies on payments and invoicing, offering greater discounts for earlier payment in an effort to clear out their accounts receivable as quickly as possible. A slowdown in the business market is a great time to hunt for bargains. 

Review your accounting firm technology stack  

Modern technology can do great things for accounting firms if selected and implemented properly. However, there is an investment of time and resources required before you can reap the full benefits of business software. If you haven’t recently evaluated the tools your firm is using to manage its day-to-day processes for everything from marketing to project management to time and billing, now is a good time. Consider how much you’re spending in both time and money on each area relative to the benefits you receive from that investment.  

In the face of tightening client budgets and potential slowdowns across many industries, consider implementing a comprehensive accounting practice management software tool to help you streamline firm operations and get the most out of your investment in accounting software. This kind of platform can help you manage internal projects, improve communication with clients, and help ensure your firm is running as efficiently as possible to prepare for an economic pullback, even if circumstances turn out better than expected.  

This article is generously brought to you by one of our valued sponsors. Their support enables us to continue delivering expert insights and the latest industry trends to our dedicated community of accounting professionals.