{"id":80955,"date":"2021-02-05t11:00:27","date_gmt":"2021-02-05t16:00:27","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=80955"},"modified":"2021-03-01t09:10:36","modified_gmt":"2021-03-01t14:10:36","slug":"4-big-issues-that-firms-face","status":"publish","type":"post","link":"\/\/www.g005e.com\/2021\/02\/05\/4-big-issues-that-firms-face\/","title":{"rendered":"4 big issues that firms face"},"content":{"rendered":"
<\/a><\/em>plus: how the merger picture hasn\u2019t changed.<\/strong><\/p>\n by marc rosenberg<\/em> an extraordinarily perfect storm was experienced by cpa firms in 2020: the endless tax season plus<\/strong> the virus. in mid-july, five months after the virus\u2019s onset, no one knew anything<\/strong> for sure going forward \u2013 neither the science of the virus and people\u2019s health nor the economic impact of the virus on the business world.<\/p>\n more:<\/b> pandemic highlights value of digital files<\/a> | remote work success helps solve staffing shortages<\/a> | you like being remote, but what about your clients?<\/a> | covid-19 shakes up m&a activity<\/a> | we adapted to remote work \u2026 now what?<\/a> here is data from a survey we took of 61 cpa firms in mid-june. virtually all firms had annual revenue of $35 million or less, with the average being about $10 million. it is important to understand these firm sizes because the top 25-50 firms were making more drastic operational moves (mainly layoffs and partner draw reductions) than typical local cpa firms. mergers. <\/strong>pre-virus, the big merger news over the past three to four years or so has been the continuing boomer retirement-induced need of small firms to sell or merge up contrasted with buyers being much more selective in sellers they choose to talk to.<\/p>\n amid the virus, we see no changes except in these obvious instances:<\/p>\n big issues that firms are frantically trying to get their arms around<\/strong><\/p>\n the cpa industry is as steady as an ocean liner in heavy seas \u2026 in normal times, which is 90 percent of the years. most established, multipartner firms experience increases in revenues and profits on an annual basis … in normal times.<\/p>\n sure, there are major challenges such as finding staff, baby boomers retiring, technology\u2019s relentlessly huge impact on the how cpa firms perform their work, among others. 2019 was no exception to these trends. but as the singing duo of chad and jeremy said, \u201cthat was yesterday, and yesterday\u2019s gone.\u201d 2020 is a year that will live in infamy (fdr), that featured perhaps the biggest change to the profession since the adoption of the income tax law. i will dwell no more on 2019.<\/p>\n","protected":false},"excerpt":{"rendered":"
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