COVID-19 accelerated change and forced us to reconsider the role of professional accountants. We heard from our stakeholders about the transformation of organizations, the agility of business, and the resilience of professional accountants managing through unanticipated change. Employers are adapting to the new normal, with one-quarter planning Restaurant Cash Flow Management to sell physical office space or terminate/opt-out of rented office space leases. Many accounting firms have had to adapt their technology infrastructure to support remote work, investing in cloud-based accounting software to enable seamless collaboration and data sharing. Not surprisingly, CPAs listed economic uncertainty and potential changes in the tax law and tax rates as some of their clients’ most prominent fears and challenges.

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One important lesson we’ve learned in 2020, is that flexibility can be an asset. This is another trend that started pre-pandemic and was greatly accelerated in the last year. At a time when automation and artificial intelligence (AI) are rapidly transforming the accounting landscape, critical thinking remains a uniquely human skill that machines cannot replicate. Critical thinking is retained earnings the cornerstone of sound judgment and decision-making, enabling accountants to navigate through uncertainties and complexities that arise in their profession.

• Where before clients were more likely to be local, the world is now their oyster.
• The impact on the commercial real estate market may well be significant, and the impact might be felt throughout 2021 and beyond.
• The ability to adapt is not just about responding to immediate needs, but also about preparing for future crises.
• Some studies that have been carried out have found that 7 in 10 accountancy firms have been busier during COVID-19.
• They have not been able to demonstrate their competency to their employers through exams.
• Accountants have bought his best-selling books in 12 countries across five continents.

Financial

Increased difficulty in communicating and collaborating with colleagues was mentioned by more than half of respondents. Slightly under half of the respondents, however, were concerned with being exposed to the coronavirus while on the job. Cloud accounting in particular has meant that businesses can monitor their tax and financial transactions in real time. Accountants and bookkeepers can work more proactively, helping clients to foresee any issues before they arise.

Adaptability to change

Under 30% of accountants ranked losing clients as their #1 concern, which is surprising given the common perception that client loss is a major worry for accountants. Firms that reported no client losses due to the pandemic were a surprising 44%. Some firms were hit harder than others, with a few losing nearly 50% of their client base. This is a stark reminder that every firm is different and will face unique challenges. A crisis response plan should also include a recovery strategy to help affected parties rebuild and recover. Effective crisis response requires a clear understanding of the situation and a well-planned strategy.

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When we eventually emerge out of the COVID-19 pandemic, the accounting will have changed permanently. Like many other industries, accounting has become a how has covid affected the accounting profession lot more accustomed to digital and remote processes that were far from commonplace prior to the pandemic. From a fundamental shift in the nature of work to significant mental health impacts for its members, COVID-19 brought with it a plethora of challenges for the accounting profession. It has also provided the opportunity for reinvention, panelists told attendees at a discussion hosted by Carleton University’s Sprott School of Business on October 16. With new UK GDPR legislation coming into effect in spring 2018, firms needed to evaluate and streamline their processes whilst embracing new tech.