Almost half (45.3%) of firms say the COVID-19 pandemic has had an overall positive effect on them by accelerating key tech and process innovation within their offices, according to a new report.
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Of the firms who said the pandemic had a positive effect on them, new service offerings — notably the Paycheck Protection Program — in addition to the adoption of more remote work, marketing and business developments were all cited as positives.
“The 2021-2022 study, given the past year’s events, uncovers how CPA firms transformed their business during a tumultuous year,” said AAM president Becca Johns in a statement. “The findings reveal the central role marketing teams played in helping their firms adjust to new client needs and priorities, launch new service lines, and keep their firms on buyers’ minds in the digital marketplace. Although the industry is known for slow-going change, this year’s results prove that firms can reinvent themselves and be better prepared for whatever comes next with the right marketing investments.”
With the rapid rate of change for firms during last year's stay-at-home orders, the study found that firms' average marketing budgets grew 100% from 2019. Eighty-five percent of firms also said they utilized new marketing and business strategies during the pandemic, with 69% citing a success with those. The shift to a digital marketplace also helped some firms reach an average median growth rate of approximately 32%.
“The crisis has accelerated innovation in the accounting industry,” said HRI managing partner Lee Frederiksen in a statement. “This innovation would not have been possible had firms taken the frequently used route of tightening their marketing belts, a move that often makes as much sense as deciding to cut your water bill when your house is on fire.”
Other notable findings from the study include:
- The top three areas of business positively impacted by the pandemic were increases in service offerings (42.4%), cost savings from remote work (18.2%), and advancements in technology (15.2%).
- The top three areas of business negatively impacted by the pandemic included in-person meetings/events (28.1%), sales (21.9%), and managing staff members (18.8%).
- The most successful marketing strategies cited during the pandemic included webinars (44.4%), COVID-19 resource pages (22.2%), and marketed PPP loan assistance (22.2%).
- Marketing budgets grew, on average, from 1.5% in 2019 to 3% in 2021.
- High-growth firms were found to offer more non-traditional services than low-growth firms, including client accounting services (25%), information security (20%), and software-technology (20%).
For the full report, head to the AAM's
