Covid-19 Impact on the Accounting and Legal Industry in the United States
How has the COVID-19 pandemic affected accounting and law firms in the United States? Are firms seeing an increased or decreased demand for their services? How are they fairing when it comes to workloads, cash-flow, salaries, and even partner drawings? What is their general prognosis on the future?
QuickFee surveyed thousands of our member firms in the accounting and legal space not just once, but twice throughout these unprecedented times asking the exact same questions. Our Mission? See what changed, if anything, and report it back to the community. Surveys were sent 7 weeks apart with the first one being sent at the beginning of March 2020, and the second in late May 2020.
63.8% of leading accounting and law firms in the United States have seen an increase in demand for their services during the Covid-19 pandemic, and while most are describing their outlook of the future as “cautiously optimistic” firms have also seen a significant decrease in firm cash flow due to firm clients being reluctant or incapable of paying their fees.
- In May 63.8% of firms have seen an increase in demand for their services (down 8.4% since March 2020)
- The most common response to increased demand is partners working longer hours
- More than 85% of firms have applied for an SBA loan
- A third of firms are currently, or have in the past assisted clients with SBA loan applications
- In May 2020 a third of firms are saying that 25% or more of their clients are showing signs of financial distress
- 20% of firms believe that some practices won’t survive
- Almost a third of firms think that there will be at least another 5 weeks before they will be working out of their office again.