Changes in the regulatory environment over the past two years have created opportunities for accountants to demonstrate the significant value and support they can provide small business owners. These businesses have faced numerous challenges throughout the pandemic from strains on talent and supply chains to changing operating models.
By assisting small business clients navigating their continued impact and the relief available to them, accountants can continue to add immense value, as they did in 2021 through assisting in securing PPP loan forgiveness, Employee Retention Tax Credits and more. Such support was vital in helping small businesses navigate forward and remain operational, helping to evolve the role of the accountant as a true, strategic partner.
Heading into the new year, emerging workforce trends will provide accountants with new opportunities to build client trust and enhance the services they provide. These are the trends we see affecting the workforce in 2022, and what it means for the accounting community and the small businesses they support:
Trend No. 1 — Employee visibility will be redefined
Nothing has changed the concept of visibility more than the migration we have seen to remote and hybrid work setups in 2020. And while some companies have begun their return to the workplace in 2021, many more are still navigating what it means to have a decentralized workforce as they explore permanent remote and hybrid models. One of the biggest impacts to carefully watch is the tax and compliance implications of having employees in different states and localities.
According to ADP Research Institute’s “People at Work: A Global Workforce View” study, within a year, COVID has significantly impacted workers’ locations. In fact, three quarters (75%) of the global workforce made changes or plan to change how or where they live, with that percentage even greater (85%) among Generation Z. As the notion of employee visibility continues to get redefined and we see less of a reliance on physical proximity, accountants should take a proactive approach in talking to small businesses about the solutions they can leverage when navigating remote and hybrid work.
Accountants know the immediate tax implications of hiring a new employee as well as the additional implications of hiring a new employee in a different state. Tools such as ADP Accountant Connect can help employers navigate the impact employee location can have, especially in states where the small business might not have any other employees. Some states additionally have laws about required retirement offerings for employees at small businesses. Others have laws around classification of contractors and staff employees. These implications might not be readily known by small business owners who may need to be made aware of these regulations.
As the world of work continues to change in 2022, people and data are at the center of its evolution.
Trend No. 2 — People & purpose will drive workplace culture
The worker is in a newly empowered position as companies navigate strains on talent and continued labor market shifts. As workers’ needs evolve and their priorities shift, they are driving a transformation of workplace culture. Employers, small and large, are adapting to these evolving talent demands and focusing efforts on high importance items like flexible work arrangements, robust benefits packages, and diversity, equity, and inclusion (DE&I) efforts. An accountant can advise their clients on the right approach to meet the evolving needs of the workforce.
Pointing to resources and tools small business clients can leverage to successfully recruit, engage and retain talent can provide mutual benefit for accountants, as they evolve the support they can offer. In fact, ADP data shows more than 50% of companies that leveraged ADP DataCloud's DE&I analytics capabilities have taken action and realized positive impact on their DE&I measures. Closing equity gaps and advancing DE&I progress is critical in creating an environment where talent can thrive. As trusted partners, accountants have an opportunity to help their clients identify gaps and foster a positive workplace culture.
Trend No. 3 — Reliable data & expertise will power resiliency
With people data only becoming more important in engaging a remote workforce and navigating the new operational and compliance considerations, the power of accountants’ advisory services will be driven further using data. An ADP survey found nearly 20% of US companies with 25 to 99 employees admit they are currently facing challenges with compliance and regulatory issues. Accountants can turn to data to help their clients overcome these needs.
For example, increased insights from tools like ADP Accountant Connect can give accountants an early warning when clients could use a check-in. Utilizing data on employers who are adding or losing workers, for example, may mean that they will soon need additional resources. If too many employees are leaving a company, data on workers and benefits might help the employer adjust their offerings to stay competitive in their local markets. With growing companies, there may be regulatory thresholds that are being approached that might warrant advisory support as well.
With people data only becoming more important in engaging a remote workforce and navigating the new operational and compliance considerations, the power of accountants’ advisory services will be driven further using data.
Trend No. 4 — Greater innovation will accelerate growth
Growth is a priority for many small businesses that might be looking to expand their reach or continue the momentum discovered through new business models. Their access to—and use of—the data and services that accountants can provide will only help fuel that growth.
One constant area of growth is the use of mobile solutions to streamline back-office functions. According to ADP data, monthly users of its ADP Mobile Solutions app increased over 25% from last year as workers leverage self-service tools, helping to remove administrative tasks from small business owners’ plates. In helping clients take advantage of opportunities such as these, accountants show a connection to the needs of the businesses and their people.
This innovation does not have to be only on the client side. Considerations like standardized tax decks can have benefits on the accountant side as well. Becoming consistent with what payment platforms and software are being used on the client side can lead to efficiencies. Such streamlining will remove barriers blocking a smooth workflow, reduce administrative burdens and take away the frustrations of working on multiple platforms. These efficiencies then can be turned into more time providing help to clients, earning them profits and gaining their trust as partners.
As the world of work continues to change in 2022, people and data are at the center of its evolution. Workers will continue to be the driving force for change going forward, and leaders in the accounting field are turning to an expanding world of data to stay ahead of workers’ needs. Accountants who stay on top of these trends and offer proactive advisory services stand to add real value to the companies they support. That added value is the differentiator for accountants, as they continue to transform their role into more trusted advisors who can help businesses navigate whatever path might lie ahead.
Erron Stark leads the Channel Strategy for ADP’s accountant, bank, broker and client channels. With more than 15 years in the HCM industry, Stark has held many leadership roles at ADP with responsibilities, including developing programs and managing teams that help accounting professionals and their clients attract top talent, comply with regulations and achieve their goals. A native of Staten Island, New York, he and his wife, Marissa, are active fund-raisers for their Foundation that benefits Pediatric Heart Disease research.
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