Yes, 2020 was a hard year. And, no, the early months of 2021 haven’t been much better. But even in the middle of challenging economic times, you have to prepare for long-term success. As we approach the mid-point of the year, it’s important to keep an eye on the finance and accounting trends Canadian companies will need to know.
After all, business goes on, even in the face of hardship. By preparing for the future, you can set yourself up for growth in the aftermath of the pandemic. That involves looking closely at the market and understanding where it’s likely to go during the second half of 2021.
Trends Canada’s Top Finance and Accounting Firms Should Be Aware Of
Bouncing Back from COVID
Like all Canadian industries, the accounting industry suffered in 2020 as a result of the COVID-19 pandemic. One study showed that the Big Four accounting firms struggled to maintain their client levels during the outbreak. They basically broke even in 2020 in terms of customer additions/departures.
Hopefully, 2021 offers a chance to bounce back from the tough times. As the pandemic slowly fades, it should open up the Canadian economy. This will lead to an expansion in businesses, meaning more clients for finance and accounting firms.
For you, that should point to a more expansive strategy. As COVID passes, set aside the bunker mentality and look to regain the pre-pandemic momentum.
That said, you should also remain cautious. The recovery so far hasn’t proceeded in a straight line. To control against setbacks, stay aware of the changing economic landscape. At the same time, don’t get too far ahead of the news.
Continued Rise of Fintech
Prior to the pandemic, fintech represented one of the major trends in the world of finance and accounting. Expect this to continue once COVID has left the scene.
Just to put the industry into perspective, Canada notched 241 fintech-related deals during 2019. These represented a total of $2.7 billion. On the customer side, fintech adoption reached 50% in the year before the pandemic took hold. This was up from just 8% in 2015.
The impact of COVID on this trend is multidimensional. On one hand, the general economic disruptions have complicated the market. On the other hand, the pandemic restrictions have accelerated the move toward digital. As a result, market experts, such as Accenture, predict further growth for the fintech sector.
Your business will have to stay at the leading edge of these changes. Stay informed about the current trends in fintech and adopt the necessary technology to remain competitive.
Managing the Gig Economy
The gig economy is hardly a new influence on the Canadian economy. One study showed that in 2019, about one out of six Canadians (17%) operated in this part of the job market.
For the finance and accounting industry, this creates a two-pronged impact. First, companies will need help understanding the market and will require assistance in managing the financial implications. Second, the accounting sector itself will continue to be impacted by the gig economy directly.
Your business should take advantage of both these opportunities. If you haven’t already, become an expert about the gig economy and how it can impact your clients. You’ll be able to offer invaluable advice (and meaningful services) directed at this portion of the market.
Meanwhile, you should also leverage the opportunity provided by temporary accounting help. These workers can complement your current team and provide a talent pipeline as you grow over time.
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