Changes and Opportunities for CPA Firms in 2022 and Beyond

CPA firms are still adjusting to the changes they experienced during the pandemic. Staff shortages and capacity issues are a few of the issues CPA firms are likely to face in 2022 as a result of new experiences, new environments, and new expectations brought about by COVID-19.

FREMONT, CA: The financial sector is still adjusting to the changes encountered by CPA companies during the epidemic. The trends and challenges that CPA companies face in 2022 are a direct outcome of the new experiences, settings, and expectations brought about by COVID-19, such as staffing shortages and capacity issues.

The following are some trends and difficulties facing CPA companies in 2022 and beyond—and how they represent development potential:

GROWTH DESPITE FEAR

Growth has historically been a need for business success. Management partners recognize and comprehend the significance of expansion. However, there is already a great deal of apprehension surrounding the expansion concept, mainly because partners and employees are already overworked and overextended due to the busy season and the uncertainty of the pandemic.

The issue that keeps managing partners awake at night is addressing the need for growth and creating development-related goals without a tipping point or overburdening an already overworked staff. How does the financial sector discuss growth when finding enough individuals to do our tasks is already challenging?

Growth in hard circumstances is a delicate balancing act, but it must remain a priority. Saying the financial sector is going to halt expansion is a risky decision. Even in hard times, the opportunity to stay focused on growth and the correct type of growth is crucial for businesses—arguably even more so in challenging times.

BUILDING ADVISORY

The previous two years have accelerated the shift toward integrating advisory services into a CPA firm's core competencies. It represents the future. Programs such as the PPP and ERC served as a spur for CPAs to identify the ability to serve as advisors and go beyond filing tax returns and conducting audits.

There are numerous benefits of implementing the advice. In the advisory function, firms can serve as the quarterback for their clients, coordinating resources such as bankers, attorneys, and HR professionals to meet their specific needs. It's about being a client's go-to resource, resolving an issue, or helping a client capitalize on an opportunity; in other words, it's all about advancing the client's interests.

EMPLOYEE ENGAGEMENT

Building guidance also assists a company's early-career personnel to identify rewarding career opportunities outside of audit and tax. Employees can get more involved in the growth process early without waiting until they become partners. This has made the world accessible to them. Keeping all team members motivated and acquiring more advising clients increases retention.

Utilizing current compliance personnel is one method to complete building advisory without overburdening an already overworked team. Compliance personnel can become anxious while discussing the development of an advisory business because they begin to question their future with the company. Consequently, CPA firms assist compliance personnel in their advising roles. Compliance staff can become more advisory-focused and grow within the company, bringing in external resources or new employees to build advisory.