THE PANDEMIC’S IMPACT ON NJCPA MEMBERS By KATHLEEN HOFFELDER
NJCPA SENIOR CONTENT EDITOR
In a year like none other, some CPAs fared surprisingly well as they adapted to remote auditing, learning, hiring and everything in between. But for others, the pandemic took a toll that will not easily be forgotten and could take years to recover from.
4
SPRING 2021 | NEW JERSEY CPA
At the end of 2020, the NJCPA surveyed more than 800 members about the implications of the coronavirus pandemic. Of the respondents who are partners at CPA firms, 33 percent said their firm had a decrease in revenue in 2020, and 31 percent expect to have a decrease in 2021. Though 45 percent anticipated revenue staying the same, it’s a sharp sign that not all organizations are operating smoothly or at the same pace. This was also evident when looking at the respondents who work in businesses or at government jobs, as 38 percent soured on their revenue prospects for 2021. And almost half (48 percent) of those respondents saw their organization’s revenue decrease in 2020. Business uncertainty and client challenges were the main reasons for the negative take on 2021 cited by those working in public practice. Respondents noted client business interruptions, such as restaurant closures in New Jersey, as potential problem areas as well as the inability for clients to pay rent. Worries also centered on an inability to grow their company’s operations and a lack of networking opportunities during the pandemic. Networking was important, they said, since it is necessary to reach both new clients as well as diversify themselves if certain client businesses
began to flounder. Acknowledging the resurgence of the second wave of the pandemic in the Garden State and what it means for economic recovery also kept CPAs on edge. SILVER LININGS Despite obvious concerns for expansion and growth during the pandemic, CPAs also worried about their staff — both mentally and physically. Most CPA firms and businesses developed ways to motivate employees and keep staff engaged during an extremely difficult 2020. At a time when many felt disconnected from family and friends, creating ways to connect with staff was an important tool in retaining employees. For those lucky enough to be on the upside of that, things were bright — sometimes very bright. As survey respondents noted, companies promised more flex time, less structure, more paid time off and employee incentives. Some even absorbed increases in health insurance instead of passing that onto staff or gave out turkeys and free lunches for the holidays. Others acknowledged that while they felt connected, better communication was still needed internally and with clients. As increased workloads and complexity related to the Coronavirus, Aid, Relief and Economic Security (CARES) Act
