It is a taxing time for taxes. Not only has the COVID-19 pandemic infected millions around the world, but it has also disrupted economies and employment as well. The International Monetary Fund has already reported the effects of the pandemic on the global economy to be worse than anything on record. Developing countries are affected because of the restrictions imposed by their respective governments to prevent the spread of the virus.
The pandemic has also changed the way we do business, with many consumers preferring to do their transactions- from shopping to paying their bills online. With resources being as limited as it is, your business will need the services of a strong accountant now more than ever. These are troubled times, and your company will need a strong anchor to stay afloat.
The Role of Taxation in Today’s Times
Taxation has been greatly affected by the effects of the pandemic. According to the report with the IMF, the pandemic will change the role of taxation in three significant ways: helping struggling economies gain access to limited resources, thus securing their sustainability, helping economies during the recovery period, and lastly preparing economies for the so-called “new normal” lifestyle.
Recovery for the economy will not be quick, and it requires a global economic response. This is why it has become important to shift towards fairer and more equitable taxation on a global level.
So, where does your business go from here? You should ask your accountant.
The Struggle is Real, but Accounting Companies Can Help Through the Struggles
According to the Journal of Accountancy, many businesses struggle to stay afloat given the current restrictions implemented by governments. Some of these businesses now operate on limited hours during to the lack of foot traffic. Accounting services may help clients get through their struggles by identifying their client’s needs based on their knowledge of their businesses.
Sandy Shecter, who is a firmwide director of Rehmann Solutions, said that the key to finding and keeping a steady number of clients is to identify their “pain points.” Likewise, Brandon Hall, CEO of The Real Estate CPA, emphasized the need to be proactive and understand how the pandemic affects the needs of customers everywhere and creating the need.
Hall also said that clients are not only seeking accounting and tax services but overall business services, as well.
Keeping ‘Hardest-Hit’ Businesses Afloat
Restaurants and food services are among the hardest-hit during the pandemic, with employee hours being cut or businesses closing altogether. While some states in the United States have allowed some of these restaurants to open, many still struggle to stay afloat. To do help hardest-hit businesses, accounting services may offer them advice on different solutions. For example, Nick Swedberg, who is a partner at Boyum Barenscheer, told his clients, who are mostly restaurant owners, to offer take-out and delivery services for their clients.
He also helped his clients work through their ideas on how they will convert their liabilities into assets. For example, Swedberg had a client who owned a Mexican restaurant who converted some of his space into a market where customers could purchase salsa, meats, and other ingredients to make meals at the comfort of their own home.
Clients are creative when it comes to finding ways to make money. It is the accounting firm’s job to see if it is viable.
New Environments Bring New Risks
With more customers making use of online transactions, a new risk comes from fraudulent transactions and cyber hacking risks. Accounting services should assist their clients in protecting their business by planning out crisis mapping measures that will be able to safeguard clients, their businesses, and their customers.
Big Moves Mean Big Changes to the Future of Business
Acquisitions, mergers, bankruptcies. These are usually on the horizon for many companies. It takes strong a strong working team to be able to collaborate and work together. Accounting firms handle the paperwork, communications, and leadership skills necessary to ensure that the deal is closed successfully.
Accounting and tax services have always played an essential role in business, albeit being underappreciated. They are responsible for keeping the business afloat and helping it veer towards another direction when the times get tough. The world of business is changing as we know it, and the business community needs strong and levelheaded stewards who would help them point the way towards stability. Necessary steps should be taken to ensure that the business can express growth despite the difficult times the world is in now.