Below is an overview of the political, economic, social, technological, legal, and environmental issues that surround accounting firms.
Political
At this time, there are very few political risks that are faced by accounting firms within the United States. This is primarily due to the fact that substantial licensure is required to operate as a certified public accountant (CPA). It is fully expected that governing bodies will continue to require specialized education and training in order to operate in this capacity. Accounting firms, among those that employee CPAs and enrolled agents, enjoy considerable barriers to entry.
Economic
Accounting firms enjoy substantial economic stability and staying power given that they provide a service that many individuals and small business owners cannot do on their own. As discussed above, there are complex licensure and regulations that guide the practice of an accounting and their subordinate staff. Even during times of economic recession, CPA firms, EA firms, and general accounting practices tend to fare well. These businesses are able to seamlessly expand their operations given that they can increase their staff, increase their marketing budgets, and engage in acquisitions to further fuel growth.
Social
There are not major social or socioeconomic matters that would have an impact on the way that an accounting firm operates. As the complexity of the tax code continues to evolve and as people become busier, the demand among individuals to have their taxes completed by a professional will continue to expand.
Technological
Accounting firms are continuing to undergo tectonic shifts in the way that they conduct their operations given the internet. CPA firms and accounting firms can now more easily coordinate ongoing efforts with their clients and staff given the instantaneous nature of online communication. Additionally, these firms are able to expand the geographic scope in which they operate. Moving forward, it is expected that accounting firms will continue to benefit from the wide range of communication and collaborative technologies that are entering the marketplace. Additionally, analytically driven software will continue to allow CPAs to provide a greater degree of guidance as it relates to adherence to the tax code. These analytics suites will allow CPAs to more easily detect mistakes when concurrently ensuring that tax liabilities are kept to a minimum, yet within the letter of the law.
Environmental
There are no current environmental issues that could impact the way in which an accounting firm operates. In fact, given the continued use of new technology – accounting firms have a low carbon footprint as telecommunication channels reduce the need for face to face interaction.