The economic impact of COVID-19 has been significant, due to a substantial slowdown in global growth and an increase in inflation. The accounting profession was one of many impacted, leaving accountants, bookkeepers and tax professionals facing temporary and long-term effects.
During the pandemic, the federal government and local governments enacted various tax relief plans to ease the burden on taxpayers. For example, in 2020 and 2021, Congress enacted three rounds of Economic Impact Payments to provide relief to U.S. households. Tax professionals had to learn how to navigate the shift to remote work and how it changed millions of Americans' taxes, and keep updated on changes with the Child Tax Credit.
In a typical busy season, accountants can work anywhere from 50 to 80 hours a week. On top of a pandemic, with ever-changing deadlines, new clients and new tax rules, accounting professionals were doing the impossible. Tax professionals had to keep abreast of the various changing tax deadlines and tax relief programs and answer complex questions from their clients, like how to file for unemployment or how to file taxes in a state you work in but don't reside in.
Sometimes, the only way to move forward is to look back. The next few years will be a pivotal time in the accounting industry, and now is the time for accounting professionals to determine where they want their firm to go from here.
Despite a difficult two years (and counting), accounting professionals from all backgrounds have an opportunity to recalibrate the profession and chart a new path forward. It's time to build upon what accountants learned after these years of instability and exhaustion. Here are three strategies accounting professionals can use to future-proof their business.
Step 1: Re-set
Before doing anything else, accounting professionals need to reset how they serve their clients and set the tone for what kind of accounting firm they want to have. With a greater emphasis on recovery and balance, accountants can be the best versions of themselves to better serve their clients. During the pandemic, clients relied on their accountants during a time of changing regulations, processes and tax deadlines. Many small businesses had to rapidly pivot the way they do business, like shifting to an e-commerce model just to make ends meet.
Now that the worst of the pandemic is over, and tax changes like the stimulus checks from the federal government and the expanded Child Tax Credit have stopped, tax filing can return to normal for next year. Rest and recovery will be front of mind for accounting professionals as we move away from the pandemic.
Step 2: Look ahead
The next step is to look ahead to what's next. Since the pandemic, firms' priorities, goals and client lists have shifted. How accounting professionals manage and leverage technology tools will have a big influence on accounting professionals' new reality. Technology can help accountants and their clients work collaboratively, as many will continue to support their clients remotely, and cloud-based accounting tools will be the ideal solution. Customers have also come to expect digital accounting services, and firms need to invest in technology that can better support them. How will accountants build new workflows for these processes, many of which were ignored during the pandemic?
The pandemic has compelled many accounting professionals to rapidly adopt new technologies to support their operations and clients remotely, and many of those will continue to be used post-pandemic. Accounting professionals have the chance to embrace technology now more than ever and look ahead to what kind of firm they want to have.
Step 3: Reconnect
Something that I'm most excited about is the chance to reconnect with clients and colleagues in person. Finally! Despite all of the great advances in technology over the past two years, connecting with people face to face is necessary to build trustful, long-term relationships with clients and coworkers. In-person events are a great opportunity to learn from industry peers and hear what's working and what's not in their practices. Colleagues can suggest digital tools that your firm hasn't thought of or when to know it's time to "rehome" a client that's not working out. It'll be a great morale boost for the profession as in-person networking events and conferences come back in full swing.
The pandemic has been more than challenging for the accounting profession. To move on, accountants need to reset their approach to client service, look ahead to rebuilding their practice, and reconnect with friends and colleagues at in-person events. Using these strategies can support accounting professionals as they work to future-proof their firms.
