Experts predict the long-term impact of COVID-19 on accounting
COVID-19 came out of nowhere, and accounting firms across the globe were forced to make changes overnight to keep running and remain compliant.
Entire organizations working from home, health and safety plans, increased office cleaning, mandated mask-use, and all client interaction happening remotely are just a few examples.
Many of these changes were—and are—temporary. But what are the long term impacts of COVID-19 on accounting firms?
We asked experts from across the world what they think the long-term impact of COVID-19 will be on the accounting industry.
Here’s what they said.
Impact 1: ‘Micro innovations’ can be problematic if not reviewed
Things happened quickly in 2020, and accounting firms had no option but to respond just as quickly.
As a result, practices needed to innovate and ‘hack’ their normal ways of operating. It may have been a hastily-created working from home policy, or a system workaround to send clients documents digitally.
Whatever they were, they were created under pressure. And so they need to be reviewed to assess their long-term viability and suitability.
Ohran Gobrin from Fuller Landau LLP calls them ‘micro innovations’ and stresses the importance of refinement.
“These micro innovations are not enduring. They don't quite get to the DNA of a business. So we need to pause and ask, ‘How do we really start to reinvent beyond coronavirus so that we can properly benefit from those things?’”
So on one hand, these micro innovations may have been perfect at the time, but are probably no longer required. But on the other hand, firms may realize these hacks pose exciting opportunities for their business and just require some finessing to ensure they make sense and are a fit.
Either way, a review is needed.
Impact 2: Firms will revise their profitability structures to ensure a balance of advisory and compliance services
If a similar event to COVID-19 was to happen, is your business prepared?
To manage successfully, accounting firms need to make sure they don’t have all their eggs in one basket. Say, advisory services, for example.
Because there will come a time when, just like COVID-19, firms will be forced to divert their resources to compliance matters. If your profitability structure isn’t prepared for that
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