COVID-19 Impacts on Accounting Industry in US

COVID-19 has left the very foundations of global financial markets in a state of recession. The effects of this epidemic are increasing day by day and the undisclosed arrival of the Corona outbreak has caused major losses to small accounting firms.

At Mindspace US we provide accounting and outsourcing bookkeeping services for accountants. So today we will discuss how Covid-19 is affecting the accounting industry.

What are the impacts on the accounting industry?

Restructuring plans

Financing has become even more difficult for some small-sized accounting firms during the difficult period of this year when the economic downturn has caused significant losses. This is why many firms are responding to this crisis by selling their businesses or cutting costs.

Delay in payments or breach of agreements

These days all businesses are going through a bad phase and accounting firms, which offer their services, especially to small-sized businesses, are getting delayed in their payments or contracts are ending. Even though the US government has announced various aid schemes for small businesses, the effects have already deepened in the economy.

Unable to cope with the digitization of tax and cloud accounting software

Corona is the most impacted small accounting firm during the pandemic that is still accounting on traditional practices, for this, they need to adapt to cloud accounting software.

Transitioning to remote work culture

As we all know that it is not yet completely safe, social distancing is the only solution to this and that is why our work culture has also changed. We have shifted from onsite to remote work culture as we have previously cloud- Decided about accounting and digitization.