At a time of economic, professional and personal disruption, worker optimism offers hope for the world of work, according to a new research report on the global workforce.  One year into the pandemic, ADP Research Institute’s study, “People at Work 2021: A Global Workforce View,” serves as a barometer of how the global workforce feels, how they have coped thus far, and delivers insight into workers’ perspectives about the future.

ADP Research Institute surveyed more than 32,000 adult workers, including the gig economy, in 17 countries to understand employee sentiment. Though attitudes and behaviors vary depending on location and local policies, the report details the impact on employees over the past year across five key dimensions of working life:worker confidence and job security, workplace conditions, pay and performance, worker mobility, and gender and family.

“In the past year business-as-usual has been suspended, forcing employers and workers to rethink accepted norms and adapt quickly to an uncertain and fast-changing world,” said Nela Richardson, chief economist, ADP. “COVID-19’s impact on job loss and change has been uneven, and those who held their jobs are facing unexpected choices, compromises, and even opportunities. We set out to understand how the pandemic continues to shape workers’ opinions and attitudes so employers can better understand the shift in employee mindset as they navigate the path forward.”

The following are key takeaways from the report:
Worker Confidence
Optimism is shaken yet persistent: COVID-19 has dented worker sentiment: although the majority (86%) of workers still say they feel optimistic about the next five years in the workplace, this is down from 92% last year. While overall optimism may be the long-term outlook, it is uneven among workers, specifically among new entrants in the workforce.

• Nearly four in five (78%) Generation Z (18-24 years old) workers feel their professional lives are affected and two in five (39%) report they lost jobs, were furloughed, or suffered a temporary layoff from their employer.
• Optimism among Generation Z has fallen substantially (to 83% from 93%) – more than any other generation.
• Fears of job insecurity have compelled three quarters of respondents (76%) to take on extra tasks, longer hours or a heavier workload.

Workplace Conditions
Unpaid overtime soars; empowerment rises on flexible working: With concerns around job security looming large, nearly half (46%) of global respondents have taken on additional responsibilities at work, either to compensate for colleagues losing their roles or – particularly when it comes to essential workers (55%) – to cope with the extra workload COVID-19 has created.

• Unpaid overtime has jumped sharply to 9.2 hours per week on average, up from 7.3 hours just a year ago.
• Since the pandemic began, there has been a sharp increase in workers (67%) who say they feel empowered to take advantage of flexible working arrangements at their companies, up from 26% before the pandemic.

Employee Performance

Pandemic puts employee performance in the spotlight: Workers admit the changes have offered opportunities to develop new skills or embark on new career paths they find satisfying or that unlock their potential.

• More than one-in-four workers (28%) took on a new role or changed roles due to job losses in their organization. Generation Z workers had to be the most agile, with more than one in three (36%) having changed roles or taken on a new one.
• There are positives: Most employees have been rewarded financially for their commitment, with nearly seven in ten (68%) having received a pay raise or a bonus.

Worker Mobility

Workers are on the move: Within a year, COVID-19 has significantly impacted workers’ locations. Three quarters (75%) of the global workforce made changes or plan to change how or where they live, even more (85%) among Generation Z.

• More than half (54%) say they are more interested in contract work since COVID-19, the main reasons being they believe there are new opportunities for them to perform contract work (35%) or because they have learned new skills that they can apply to contract work (32%).
• Older workers are most open to the idea of shifting into contract work (29% of over 55-year-olds and 22% of 45 to 54-year-olds), followed by Generation Z (19%).
• However, the majority of workers (83%) would still opt for a permanent, traditional job rather than contract work, a proportion that is relatively unchanged since last year.

Gender and Family

• Half of respondents (52%) believe employers accommodating the needs of working parents will cease within a year, something likely to weigh heavily in future decisions, as 15% of working parents report they or a member of their household has already stopped working voluntarily, rising to 26% for those with children under one.
• Two thirds (67%) say they have been forced to make a compromise between their work and their personal life because of the impact of the pandemic, especially for women and parents.
• Women are also less likely than men to receive a bonus or pay raise for taking on additional work or changing roles, with the greatest gap in North America, where 62% of men received a bonus or pay raise for changes to their roles, compared to only 50% of women.

For a more detailed look and to download ADP Research Institute’s report, “People at Work 2021: A Global Workforce View,” visit ADPRI.org.

Apr 28th, 2021

https://www.cpapracticeadvisor.com/payroll/news/21220540/how-working-conditions-and-attitudes-have-changed-due-to-the-pandemic

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Report Shows Small Businesses on Road to Recovery

U.S. small businesses are on the road to recovery from the financial losses experienced during the COVID-19 pandemic, according to a new report by Intuit QuickBooks. The report, Intuit QuickBooks Small Business Recovery, published by Intuit, uncovers the varied impact the pandemic has had on small businesses across different industries and geographies since March 2020, when COVID-19 caused many business owners to temporarily shut their doors.

Small Businesses Are Recovering

COVID-19 has had a significant impact on the financial health of American small businesses. In fact, small businesses lost $4.6 billion in monthly revenue in April 2020 alone compared with their pre-pandemic revenue, according to the report. However, small businesses have proved to be resilient. As of March 31, 2021, 61% of industries saw annual revenue increase compared to before the pandemic, following a largely sustained recovery since April 2020.

“From bowling alleys to dentists, and from coast to coast, no small business was immune to the challenging circumstances that COVID-19 presented this year,” said Alex Chriss, EVP and GM, Intuit QuickBooks. “Despite these challenges, our data shows that small businesses are on a path to recovery, demonstrating the resilience and tenacity that small businesses embody for all of us. The spirit of resilience and recovery is evident across the entire QuickBooks platform, and Intuit is committed to helping businesses learn new ways to grow and thrive in the future.”

The QuickBooks report examines the financial health of small businesses across the United States by leveraging anonymized revenue data from between 800,000 to 1.1 million QuickBooks Online customers. In collaboration with Sand Hill Econometrics founder Susan Woodward, the report uses net bank deposits, which show how much money is going into business bank accounts, excluding government grants and loans, to provide the most complete picture of small business revenues after the onset of the COVID-19 pandemic.

As the trusted partner of small businesses for more than 25 years, QuickBooks used its data and insights to illustrate how small businesses are performing – regionally and by industry – to fully understand the impact of the pandemic on the smallest of small businesses. The businesses represented in this report typically have up to 10 employees. Some have no employees.

“Intuit QuickBooks data has provided extraordinary insights into the pandemic’s effect on small businesses, for worse, and for better. We can see where the recoveries are, and are not,” said Susan Woodward, founder of Sand Hill Econometrics. “Only QuickBooks can see genuine small company revenues, monthly

, by industry and location with such accuracy and timeliness.”

COVID Impact on Small Business Report Summary

The impact of COVID-19 on small businesses nationally is clear when analyzing QuickBooks small business revenue data during the pandemic compared to pre-pandemic benchmarks. Throughout 2020, the financial health of U.S. small businesses rose and fell in line with the pandemic as states, counties, cities, and towns responded with varying stringent or lenient COVID-19 operational guidelines. As stricter regulations on how small businesses could operate were put in place, revenues fell; as regulations were lifted, small businesses saw opportunities to rebound. One year later, QuickBooks data reveals that even some of the hardest hit small businesses are experiencing a recovery.

Report Highlights

• COVID’s impact on small business revenue was most severe in April 2020 when revenue dropped by 22% nationwide — equivalent to $4.6 billion during that month alone compared to before the pandemic.
• In general, businesses in high-density, urban areas — especially on the East and West Coasts — experienced a greater negative financial impact than those in rural areas. Brooklyn, New York and San Francisco, California were among the worst-hit cities.
• Some of the worst-hit businesses were in the recreation industry. Bowling alleys’ annual revenues are down by 33% — a drop of more than $250,000 per business — compared to before the pandemic.
• Home improvement and real estate businesses have been among the top performers over the past 12 months. At the end of March 2021, mortgage bankers’ annual revenues were up by 30% compared to their pre-pandemic level — an increase of $147,000 per business.

“We didn’t experience a dip during the pandemic,” shared Dee Johnson, owner of Au Courant

, a manufacturer of luxury lighting and unique chandeliers within the construction industry. “With so many people looking to remodel their homes, we were actually quite busy.”

As a non-essential business, Johnson explained they did have to shut their doors for a while, but that gave them time to figure out how to pivot and evolve their business.

“Over the course of the pandemic, we created 400 new products and were able to develop a new product line at a more affordable price point, opening our business up to a new segment of the market,” Johnson said.

To view the full report and learn more about the sample, data, and methodology, please visit https://quickbooks.intuit.com/r/coronavirus/small-business-recovery/

https://www.cpapracticeadvisor.com/small-business/news/21220220/report-shows-small-businesses-on-road-to-recovery

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The pandemic pushed us forward. Let’s keep evolving

Continue the changes you’ve made into 2021 and beyond.

A close friend of mine had a slight stroke, and it changed his life for the better. He immediately made changes to his lifestyle, eating, and exercise habits. Today, he is healthier, happier, and more productive. All of these changes were things he kept making promises to do “someday,” but that turned out to be a very risky idea.

Before the pandemic, much like my friend before his stroke, members of our profession would often say they’d make changes “someday.” We had vague concepts, ideas, and experiments for how we’d change, but didn’t act on them.

The pandemic, though, has pushed us forward, causing us to make genuine transformation. I believe we are healthier today because of it. Here is why this is a defining moment for us:

•  It forced us to adopt flexibility in how, when, and where we work. The power of remote work has been demonstrated for more than a year now. Serving clients remotely has been a huge success, and we are doing it with less travel expense. Our ability to attract and serve clients in all geographies has been expanded. Firms are also attracting job candidates that they might have passed on due to geography, or who might have declined an offer because they did not want to relocate. We will see the ability to reduce our office space footprint while building hybrid teams that use rotational schedules to capture the best of face-to-face and remote benefits.

Until the pandemic propelled us forward with a workforce serving clients remotely, our profession struggled with this vision. Yes, a few firms or teams operated virtually, but our profession was mostly clinging to being in the office as much as possible. Suddenly, we are on equal footing with consulting and professional service firms who were way ahead of our profession’s efforts to completely integrate flexibility into the workplace. Our team members are empowered to integrate their careers and personal lives and will not want to return to the old model.

• It led us to create new services to meet clients’ increased needs. The pandemic has also created more client needs than we have seen in our recent history. Clients and markets are screaming for certainty, strategic direction, and insights to combat the hyper-speed of change. We are answering the call with many new services that we had never contemplated or that were still on our “someday” plan. Firms are providing more strategic consulting, delivering insights from data analytics, offering Paycheck Protection Program loan services and COVID relief work, transitioning clients to the cloud, assisting with cybersecurity and SOC readiness, and the list goes on.

Many firms are experiencing growth and/or improved margins. I participate in two top 100 managing partner roundtables, and these firms are consistently reporting higher margins with reduced expenses while capturing growth on new services. This has also been true in our firm. I found it very interesting that several of the participating firms who are active in mergers and acquisitions reported the value of firms is going up with new market pressure to put some cash upfront for the firm being acquired. Has the pandemic made our firms more indispensable and valuable? I think so.

• It caused us to rethink how we measure work and bill for it. The pandemic has finally led many firms to reconsider whether time should determine the value of our services. In our roundtable meetings, firm leaders have discussed working on new pricing models and learning more about the worth of high-impact consulting services. What creative ways can we evolve our pricing to reflect our worth?

• It accelerated our learning curve. The last reason I am convinced the pandemic propelled us forward and made us healthier is the validation I hear from fellow managing partners. They have shared how much and how quickly they have learned and grown as leaders. Managing partners have shared how their firms are learning faster and becoming more agile to address client needs. It’s these conversations that convinced me that the game has changed, firms are moving into high gear, and our future is extremely bright.

Reality check

The pandemic forced many of us to examine some of the excuses we made for only changing at an incremental pace. Until it hit, we, as a profession, were simply not moving fast enough to grow our relevance in the 21st century. We were, like my friend, living a comfortable lifestyle but not the healthiest one. Our accountability as partners and owners was not grounded in the reality of the hard trends we are facing from a competitive landscape. We were not making the significant investments in people, focus, and technology to anticipate and capture new opportunities from digital transformation.

This is a defining moment for our profession. Why should we not plan for and expect significant organic growth based on the transformation that has occurred? Isn’t the market screaming for our skills, knowledge, acumen, experience, and resources? This is our moment. Let’s be the most emphatic, most creative, most powerful, most anticipatory profession we can, and move with urgency from essential to indispensable!

— Joey Havens, CPA, CGMA, is the executive partner at HORNE LLP, where he leads the 1,000-employee firm’s strategic visioning for culture, growth, and client experience. Learn more at hornellp.com. To comment on this article or to suggest an idea for another article, contact Courtney Vien, a  senior editor, at Courtney.Vien@aicpa-cima.com.

JofA

By Joey Havens, CPA, CGMA

April 26, 2021

https://www.journalofaccountancy.com/newsletters/2021/apr/continuing-pandemic-transformation.html

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Tax Day in 2021 coincides with Mental Health Month, observed each May — and while that’s almost certainly a coincidence, it’s a coincidence that certainly feels apt. This won’t be lost on already under-the-gun tax professionals, for whom the lead-up to the filing deadline, even under ordinary circumstances, is invariably, well, taxing. And the circumstances right now are anything but ordinary.
With all of that in mind, here are three tips to help tax pros de-stress, deepen client relationships and avoid issues like burnout during what is bound to be a very busy time of year.
 1. Stay Current with the Latest Changes From the IRS
This goes without saying, which is why it needs to be said. Make sure you’re aware of all the latest from the IRS. Personally, I recommend checking in with the IRS Newsroom on a daily, or at the very least weekly, basis. Another approach would be to set up simple Google Alerts.
Whatever approach you take, it’s been a crazy year, and you need to be prepared. Otherwise, strikes right down the middle will start looking like curveballs.
2. Simplify, Simplify, Simplify
Take it from me, simplifying complex information and explaining technical language when asked are two things that every client appreciates. And while doing so is easier preached than practiced, it’ll make all the difference this year. Why? Two reasons:
●      Communication ensures alignment, which is comparatively less of an issue when you’re meeting clients face to face. Relegated to screen-to-screen digital interactions, however, it’s a different story.
●       Clients will come away from the meeting feeling like they’ve been heard, which should increase satisfaction levels and ensure clarity around next steps. You can reinforce the latter by sharing simple takeaways — checklists, for example, or brief summaries of what was discussed — after every meeting, as well.
3. Self-Monitor for Symptoms of Burnout
You’ve probably heard of the concept of “burnout” before. It’s a condition characterized by excessive stress, exhaustion and a general inability to cope. But did you ever consider whether or not you were at risk?
Right now, with tax deadlines looming on the horizon, maybe you should — because if burnout strikes, the consequences would literally be costly to your practice. One survey from around the start of the pandemic, for example, showed that mental health concerns like burnout had become the number-one cause of long-term work absences.
How to avoid this? A few simple tips: Take micro-breaks throughout the day (for example, five minutes away from your desk each hour). Take your lunch outside (and away from work). Take a moment to breathe.
These might sound like relatively simple actions to take, but knowing the signs of burnout is an important first step — alert to these warning signs, you’ll be that much better positioned to combat burnout, or avoid it altogether.
Looking Ahead to May
If there’s one thing the global pandemic has brought home for all of us, I hope it’s this: health and wellbeing have to come first. These things are a lot more important than work. You should keep that in mind at all times, of course, but especially as we approach the filing deadline in May.
For now, here’s wishing you — and tax pros everywhere — a value-adding, relationship-enriching and above all burnout-free Tax Day 2021!

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With more than 22 years’ experience in the staffing industry, Jodi oversees the field organization and provides direction for Tatum. Jodi is responsible for continuing to transform Tatum into a data-driven organizational search and consulting firm helping clients select the key financial talent they need to execute their business strategies. Throughout her career, Jodi’s entrepreneurial drive and strong business acumen have led to increased revenues, gross profit growth and improved ROI. Along with a proven track record of building high-performing teams, she brings a wealth of knowledge in strategic planning and execution, mergers and acquisitions, brand strategy, social media and multi-generational leadership.

https://www.cpapracticeadvisor.com/payroll/article/21217973/3-tips-for-a-less-taxing-tax-day-this-mental-health-month

Jodi Chavez

Apr 22nd, 2021

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Are You the Right Tax Professional for That New Client?

At the end of the day, building relationships with our clients and helping them succeed is our goal. These are just a few of the ways we like to ensure each client that comes to us is the right fit for their needs and ours.

On any given day, people are searching for a Tax Professional for their tax and accounting needs. What they aren’t thinking about, is how important it is to find the right Tax Professional for their goals. There are multiple types of firms ranging in size, specialty and services and it’s essential that the relationship between tax pro and client is mutually beneficial.

It’s critical to find the right fit because it helps your firm build successful relationships, while also helping both you and your clients businesses thrive. Below are a few ways my firm goes about categorizing incoming potential clients and practices we put in place to ensure they are the right fit for our firm.

Services Requested

To help better understand if a potential new client is the right fit, we first need to understand what services they need from us. Are they looking for:

• An advisory partner: A tax pro who will sit down and help plan out their clients goals long-term and help to achieve them. A proactive partner who focuses on tax strategy along with overall business strategy that helps their clients reach their business & personal goals.
• A tax return partner: A tax pro who will solely focus on completing tax returns each year. While this expert may have deep and extremely beneficial tax knowledge, they do not provide additional advice as far as overall business financials.
• Middle- ground partner: A tax pro who will file their clients tax returns and also be available for some quick advice. This is not as extensive as an advisory partner; this partner is focused on small increments of help, rather than a full long-term goal setting offering.

Planning is the First Step

After identifying the type of support the potential client is looking for, our first official step to bring the client on board is always to conduct a planning meeting. By doing so, we understand what the client wants out of a tax pro as well as important logistical information — like how they do their taxes and preferred meeting cadences if we move forward. Truly understanding where the potential client wants to go with their finances can help build a better relationship and be a mutually beneficial meeting.

Set Goals to Achieve Success

After the planning meeting, we set clear goals with action items for our clients, and then internally, so that we can provide the best services possible to help them succeed. With that in mind, we make sure everything at our firm is goal-based. This not only helps as we support our clients in reaching their business objectives, but also with projections on our end. This may seem like a simple step, but it is incredibly helpful in the long run to be on the same page as your clients and will ensure you solidify a great partnership.

At the end of the day, building relationships with our clients and helping them succeed is our goal. These are just a few of the ways we like to ensure each client that comes to us is the right fit for their needs and ours.

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Jamie E. O’Kane is a tax professional, owner of Abundant Beans Tax & AccountingIntuit 

, and an 

ProConnect Tax Customer Council Member.

https://www.cpapracticeadvisor.com/tax-compliance/news/21219734/are-you-the-right-tax-professional-for-that-new-client

Jamie E. O’Kane

Apr 22nd, 2021

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