Changes To Expect In The Tax And Accounting Industry
There’s not a single industry that hasn’t experienced a dramatic change in 2020. The pandemic presented personal and professional challenges for everyone. In the tax and accounting industry, professionals were challenged with working virtually to assist clients who needed services that weren’t part of the traditional portfolio previously. In addition to service delivery changes, we’ve also had to deal with regulation changes and a heaping volume of tax requirements.
Fortunately, by staying aware of the latest developments in taxation Michael J. Berger and Co., CPA’s LLP is able to help you file your taxes as per the latest guidelines to avoid penalties and issues with the tax authorities. This year, we’ve seen three changes in the tax and accounting industry. To bring you up to speed, we’ve explained them in this blog.
1. Increase in taxes
Tax rates are going to go up for individuals, corporations, and investors. These could be drastic increases in the near future, and some may be retroactive to the beginning of this year. As a result, all tax planning will have to be revised to accommodate the changes. Most clients will be affected either directly or indirectly by an increase in taxes. We believe it will have a negative impact on business growth and will ultimately affect individuals. All costs of living will also increase and bring with them their own shortcomings. It will affect all business and supply lines as well. But, we are ready to adapt, even if the situation gets drastic.
2. Change in tax deadlines
Last year, the tax deadline was moved from April 15 to July 15 mainly because of the Corona Virus. This year the tax deadline was moved from April 15 to May 17. We have an enormous amount of tax extensions to keep us very busy for the next few months on account of this. We are not sure what will happen next year. Perhaps April 15 may no longer be a reasonable deadline to file. Irrespective of the changes to come, we will have to adjust to doing taxes most of the year instead of only the beginning of the year.
There’s also the concern that many clients wait until the last minute to file their taxes, even if they are getting a refund. Many corporations too file for extensions, and that also holds up many personal tax returns.
New deadlines mean new schedules have to be met. It might end up confusing someone who isn’t aware or used to the industry. However, the industry will have to adapt to this change, and employees will need to work differently in the future to adjust. We believe this will change life as we know it, and while most of the accounting was and will continue to be a monthly task, taxes will change from three or four months to nine or ten months.
3. Increase in accounting and tax preparation professionals
No one could have predicted the trials and tribulations resulting from the pandemic. But, as the months passed, tax and accounting professionals could see there were opportunities within the new normal. As some businesses were forced to shutter and others sought to take part in the new government response programs like the PPP, they now needed assistance and guidance from tax professionals. Employment opportunities will increase in our industry. We are presently looking for two more accountants with tax preparation experience. This is a positive change for clients as this ensures that they will have more experienced people to choose from to get their taxes done early.
These changes will stretch out our tax period to almost the entire year, which means we are all going to have to change how we do things in the future. But, irrespective of the changes that may occur, we will ensure that we stay flexible and adapt to them to deliver the highest standard of professionalism. We will all adjust to the new reality and help you adjust as well in a comfortable way.
Michael J. Berger and Co., CPA’s LLP is an accounting and CPA Firm in Long Island, NY, that you can trust! Our team provides personalized accounting and tax services to small and medium-sized businesses. We also do personal tax returns in Long Island, NY, for current and prior years. When you work with our firm, we ensure that all of your accounting and tax issues are handled professionally. Our highly experienced team is committed to offering excellent service for planning and creative accounting and tax work. In addition to accounting and taxes, our team can also help you with estate planning in Long Island, NY, as well as a variety of other financial services. Visit our website to learn more or contact Michael J. Berger and Co., CPA’s LLP today!