The Year Ahead: 2021 in numbers

December 1, 2020 9:00 AM

In order to see what CPAs and accountants believe 2021 has in store for them — and what they have in store for it — Accounting Today conducted its annual survey of firms of all sizes in early November, polling professionals on everything from their growth expectations to their plans for tech spending, their use of social media, the new services they're offering, and what they expect to happen with the pandemic.

In addition, a nationwide panel of leaders from across the profession share what they expect 2021 to bring the accounting profession here.

This year's survey reached 170 firms in late October and early November. For the data below, small firms are those with up to $200,000 in revenue; midsized firms have up to $1 million in revenue; and large firms have over $1 million.

AT-112820-Year Ahead - expected firm growth rates CHART

Interestingly, the growth predictions for 2021 aren't that far off from those firms made for 2020: Roughly a quarter of firms expect double-digit growth, and the percent who expect modest single-digit growth is similar.

The only significant differences is the drop in those expecting high-single-digit growth (12 percent this year, versus 19 percent last year), and an increase in those expecting their revenues to stay flat or decline (19 percent this year, versus 11 percent last year).

AT-112820-Year Ahead expected growth rates by firm size CHART

AT-112820-Year Ahead Tax Season Expectations CHART

Nineteen percent of accountants and tax pros expect the 2021 tax season to be worse than 2020's; that's almost four times the 5 percent who expected 2020 would be worse than 2019.

AT-112820-Year Ahead - Pandemic end CHART

Roughly half of firms expect the pandemic to be with us for at least another year, and more than three-quarters don't see an end to it before the third quarter of 2021.

AT-112820-Year Ahead - All firm issues CHART

Even with the coronavirus pandemic and its impact top of mind, firms are still concerned about recruiting and retention.

AT-112820-Year Ahead - Small firm issues CHART

The rapidly shifting regulatory and legislative landscape around the Paycheck Protection Program and other stimulus-related programs is precisely the kind of regulatory change that small firms, with their smaller staff and limited training and research resources, routinely cite as a major challenge.

AT-112820-Year Ahead - midsized firm issues CHART

AT-112820-Year Ahead - Largefirm issues CHART

More than two-thirds of firms are already offering coronavirus-related services of one kind or another, and that should rise to three-quarters in 2021.

Beyond that, client accounting services is still on a tear: The number offering it almost doubled in 2020, with another 15 percent slated to add it in 2021. Wealth management and tech/cybersecurity services also maintained positive momentum.

AT-112820-Year Ahead - Tech Budget Change CHART

AT-112820-Year Ahead percent working remotely CHART

AT-112820-Year Ahead remote work change CHART

The overwhelming majority of firms don't expect the percentage of their staff who are 100-percent remote to change in 2021 (89 percent of small firms, 79 percent of midsized firms, and 57 percent of large firms).

Of those who do expected it to change, more large firms expect to see more people working remotely; more midsized firms expect to see fewer people staying outside the office; and small firms are split fairly evenly.