BigTime Software, a leading provider of cloud-based software for professional services firms, released a new report today surveying more than 200 professional services firms across end markets and regions in the US on the impact of COVID-19 on their business.
The report revealed that:
- The majority (77%) of professional service firms are applying for the CARES Act Payroll Protection Program. The 23% of firms not applying have staff sizes ranging from 1-50, while all the larger firms participating in the survey (51-200 staffers) have applied for relief
- It is crucial that a firm has a banking relationship in order to secure funding. Without that relationship, smaller firms are less likely to apply for support
- Despite being less likely to benefit from Payroll Protection Program support, over half (54%) of smaller professional service firms are not considering staff reductions in the coming weeks
“Small businesses remain optimistic, increasingly relying on the resilience of the US economy. But, with no clear timeline for ending the lockdown, this is beginning to look like a ‘bet the farm’ strategy,” said Brain Saunders, founder, and CEO of BigTime Software. “In our survey, we saw that even without the extra support, small business owners are not reducing their staff as quickly as their larger counterparts. Those small business owners seem to be willing to take on the lion’s share of the risk, likely because it isn’t just business for them: it’s personal. They treat their staff like family.”
The COVID-19 and the Professional Services Industry Report surveyed the virus’s impact on small-to-mid-sized professional service firms, including accounting, consulting, law, architecture, advertising, IT services and engineering firms.
Other key findings from this survey of more than 200 firms include:
- Professional Service firms are conducting business as usual with 87% not reducing contract rates to secure new business; instead, they are productizing new offerings and adjusting to an online/virtual sales model
- While 41% of firms believe the crisis will have little or no impact on revenues, the rest expect to see a more significant revenue reduction. However, about half (48%) expect the impact to revenue to last less than a year
The results of the report are based on a survey of over 200 BigTime Software clients within professional services collected on April 9, 2020. To view the full report click here.
ABOUT BIGTIME SOFTWARE, INC.
BigTime Software, Inc. is dedicated to developing practice management tools that help growing professional services firms track, manage and invoice their time. Its award-winning industry-specific solutions are designed to speak the language of consultants of all stripes, from accounting, engineering, and architecture to IT services. To see why thousands of customers rely on BigTime’s cloud-based tools to more easily manage their businesses and effectively plan for tomorrow, visit bigtime.net.