The Demand for Small Accounting Firms During the Pandemic

Post-pandemic, the country's economy is struggling to get back on its feet. Almost all businesses even the big companies are adjusting to the new normal as it seems this coronavirus will not be going away anytime soon.

The small and medium businesses who are gravely affected by the closure of establishments and its operations due to the widespread of the virus has taken a big toll on SME owners. For two months, the business did not earn any income at all; and another month or so, the business will not be earning any income still. What's painstaking is that the fixed income that the business owners are obliged to pay even without having any money coming in. This would logically mean that the business should have included on their budget the contingency money to pay up for the fixed costs such as rental and salaries add to that the support that you may need to provide your employees until everything is normalized. But what if the business do not have an account for these expenses?

These are some of the many problems that a small and medium business are facing today. Add to this list the owners' tax obligation as the tax season is already here. This is where I believe that small accounting firms have the edge as against the big accounting firms in the country today. Small and medium enterprises (SME's) make up around 80 to 90% of the country's economy. It means that the demand for small accounting firms are also largely needed on this sector. The relationship of the small and medium businesses and the accountants or tax advisors are extremely important to somehow help ease the business owners' struggle to the major aspects of the business.

Building the relationship of trust. Since the business owner is struggling financially, he do not want to earn more headache as to hiring an accountant that does not know what he/she is doing or acts as if he knows better than the business owner. As I've seen in the 90's and early 2000's, the emerging micro entrepreneurs prefer to hire referrals by someone they know; through word of mouth. During this time entrepreneurs prefer home-based accountants or tax preparers has been practicing for the longest time. It was also during this time (or pre-internet), the demand for home-based accountants are high. These entrepreneurs believe that knowing someone they can trust and understand their financial statements will give them peace of mind without having to feel being ripped off with high fees. Oh! they need us today. :-)

Someone wherein business owners can rely on. When business owners reach out to their accountants or tax advisors, they know they will be provided with the best possible solution to their woes and that they are certain that they have paid the appropriate tax obligation. More so when the tax mapping and examination arrives and the inspector will knock on our establishment, business owners are confident that all government documents are available and that their accountant is just a swift phone call away.
Accountants and tax preparers are also needed during this time of uncertainty. Business owners need guidance as to how to proceed with their tax obligations knowing that most tax deadlines have already past due; they need to rely on a well experienced accountant to balance, adjust and give correct advise on tax payments and avoid the trap of paying penalties.

Accountant who can adapt to the technology. Most of the businesses are testing the waters in the online world due to the pandemic -- buyers and loyal customers browse online and prefer to pay shipping fee while waiting for their products to arrive at their doorstep. Food retailers and other essential product suppliers are the best example of small and medium businesses who are forced to take on this leap. Business owners prefer to have accountants who are still able to operate online even if there is a lockdown, and accountants are not able to physical go to banks and BIR offices, by using online tools from BIR such as eBIR, eFPS; GCASH and other payment platforms are also well used today to pay for the owners' tax obligations.
Business owners would like to hire someone who are advanced and knowledgeable when talking about online transactions and online bookkeeping. Having an accountant who is knowledgeable in navigating the internet gives business owners the confidence on their business in terms of complying with taxes and keeping the books up to date even we are on lockdown.

Some businesses may not be able to get through this temporary loss we are experiencing but let us always remember that there is a solution for every problem and that every challenge we face will soon show its purpose. Most small and medium business will try to hang around and see if they can thrive through the new normal. But in order to live through this pandemic, small accounting firms are basically what is needed today by the most affected small and medium businesses in the country.