By Analytix Editorial Team
As businesses gear up for recovery and rebuilding during the COVID-19 pandemic, consider these strategies that can help align your growing CPA firm with sustainability and growth.
As some businesses struggle to remain afloat during the COVID-19 pandemic, there are other businesses that transitioned to operating remotely. As a result, these businesses are already equipped with digital capabilities. According to a report by the US Small Business Administration, many small businesses shifted part or all of their employees to a work-from-home model, and 57% of small to medium-sized business owners said they would continue to offer remote work options in the long term. The report also projects that a virtual service delivery model will remain in demand, as more people recognize its benefits. Digitization is important, but small businesses are not always financially well positioned to support full-fledged technology adaptations. There must be a balance in the discretionary deployment of digital capabilities. Another alternative is to leverage partnerships as an effective way of tapping into state-of-the-art, high-calibre technological capabilities without the capital investment or increased workload.
Safeguarding existing revenue and pursuing new ways to generate income are high priorities for small firms. Apart from operating within limited financial means, the COVID-19 pandemic has added to the financial burden of small businesses. According to the U.S. Census Bureau Small Business Pulse Survey, 34.2% of all businesses surveyed — through the second week of August — reported a financial impact brought on by the pandemic. It is vital to identify different ways to safeguard existing revenue and continue to grow without business interruptions.
Correctly identifying challenges can help firms determine the approach they need to take. In order to meet new requirements, consider whether the business needs to completely pivot or to readjust the approach to business operations and management.
Prioritizing needs is vital. Creating a plan that can help firms swiftly and accurately adapt to client requirements is central to business sustainability.
With the pandemic creating unforeseen changes to living and working, small businesses must act swiftly to adapt and pivot, if needed. Different perspectives include expanding service scope, making modifications to meet client needs, and streamlining operations to help the firm sustain and thrive.
Bonus: Evolving business model
Evolution is as important to growth and sustainability as the ability to adapt. Just as CPA firms adapt solutions to fit client needs, they need to align their businesses models to evolve as necessary. Client needs should dictate changes required in business management or operations. Those needs may include upgrading from a firm’s traditional business model to a leaner growth model.
Adapting to change is a powerful mechanism that supports expansion and revival. CPA firms and small businesses in other industries must review existing operational and management models to identify challenges.
Build, evolve, thrive
Small businesses may become more reliant on CPA firms to provide financial guidance and expertise during these uncertain times. CPA firms can position themselves for growth by identifying partnership opportunities that can help them quickly scale to address an increasing client workload or base. These partnerships can offer CPA firms access to: