more highlights: “tax season from hell.” the pandemic pivot. small business outlook. digitally-powered recovery.
by 卡塔尔世界杯常规比赛时间
three years after the notorious “wayfair” decision, accountants say a vast number of small businesses face new and burdensome interstate sales tax measures. but only a few accountants appear ready to help, according to new research by 卡塔尔世界杯常规比赛时间.
more: survey: rough seas ahead for small business
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most accountants believe that 98 percent of small businesses – virtually all – are failing to fully comply with all the interstate sales tax issues they may be liable for. and yet, about 71 percent of accountants are falling short of handling all their clients’ sales tax issues, with about 12 percent saying they address “most” issues, 36 percent handling “some,” and 24 percent handling none, according to the new study conducted in conjunction with avalara, the tax management software company.
the new findings emerge from a tax season 2021 canvass of more than 500 accountants across the nation. with accountants calling 2021 “the tax season from hell,” 53 percent report a “worse” year this year, compared to last year.
busy season barometer 2021
sample comments from accountants reporting a “worse” year:
- “irs delays in sending client refunds. clients call me to find out where is their stimulus money, etc.”
- “software update delays, with the 03-11 changes.”
- “all the tax law changes and software updates. plus, state non-conformity.”
sample comments from accountants reporting a “better year:
- “we actually made some process changes…and they worked.”
- “my business was already set up to operate virtually. covid just pushed customers who would have normally been hesitant to operate remotely with an open mind.”
- “clients are now used to sending info either electronically or u.s. mail which tremendously cuts down on time wasted.”
out of lockdown
as the u.s. economy starts to lurch out of lockdown, tax and accounting practitioners serving small businesses – the bulk of them local, independently owned-and-operated, “main street-type” operations – appear decidedly downcast about the future.
the accountants confidence report
the small business category draws the most pessimism from accountants, compared to the u.s. economy in general, their own clients, their firm, and themselves and their families,
but the small business lessons learned under historically difficult conditions could provide the keys to the future. accountants indicate the small business shift to online technologies and e-commerce services have proved their value and will no doubt proliferate.
in a field of choices, accountants selected:
(1) “keeping up with changes in online technologies,”
(2) “learning to be flexible, innovative and super-scrappy,” and
(3) “pivoting from brick-and-mortar to doing business online and virtual”
…as the top three make-or-break trends for small business survival over the next 12 to 18 months.
sample accountants comments on best advice for small business:
- “be flexible.”
- “watch your cash flow and be creative!”
- “adapt your business to the technological advances that came about during the pandemic (social media, online ordering, etc.). focus on your core business and keep pace with your competition.”
- “stay in the know! things may seem like they are getting back to normal, but we all know they will never be the same. stay abreast of changes in your industry and make management changes in your business to use the current environment to build your strengths.”
and accountants are taking their own medicine by:
(1) going virtual with their workflows,
(2) learning to be more innovative and adaptable in the face of fast-changing government tax and recovery measures, and
(3) adopting cloud-based software solutions.
sample accountants comments on best advice for other firms:
- “stay client-focused and be flexible.”
- “be innovative, watch cash flow, and find out what your client’s needs are, as well as employee needs.”
- “keep up with technology.”
- “be adaptive as the profession is changing. use technology to your advantage. think out of the box.”
- “if you don’t understand your clients’ businesses completely, you cannot add real value to their operations.”
wayfair compliance and service levels
with the pivot to e-commerce, many small businesses will need to confront the harsh reality of modern interstate commerce. new “wayfair” state and local tax regimes loom large in complexity and liability.
most accountants agree: the vast majority of small businesses are woefully unprepared for “wayfair” and may have some degree of exposure.
sample accountants comments:
- “i think it’s created confusion (and maybe still does). hopefully, technology will be able to provide tools to assist with compliance.”
- “most that i’ve talked to find the collection and filing processes most annoying.”
- “more costs to comply; lack of complying could bankrupt a company.”
- “surprise audits for those that are not compliant.”
- “potentially large administrative burden for small businesses to comply with reporting”
and yet, very few firms are handling their client sales tax exposures.
