Over the last few months, we have seen unparalleled uncertainty in the economy and for companies across the world. In response, we conducted a survey to measure the pulse of financial leaders of private companies in New England as they react to the COVID-19 pandemic.
Demographics of Respondents
In general, our respondents are CFOs, Controllers, Partners, and senior financial leaders. The majority (45%) of the respondents have office locations that are headquartered in Greater Boston and central Massachusetts. We had a good sampling across industries, but saw the most responses from the professional services (34%), investment services (17%), and real estate (15%) industries. These respondents generally work at mid-sized companies, with 48% reporting they have between $5-50 million in revenue.
Before we share the full results of our survey, we wanted to highlight some of the key insights that stood out to us. While some of the results on the impacts and concerns that companies are experiencing were what most would expect, others were more unexpected. We weren’t surprised to see that 90% had the majority of their staff working remotely, or that 81% expected a medium or high amount of impact to their business. We were surprised, however, to see that only 56% had started to restrict spending. Another statistic that stood out was that 55% have experienced or are expecting to see significant ramifications by the end of 2020 if business remains restricted. That number indicates that if we do not see a vaccine before the end of the year, ramifications might be more severe for many companies in the region.
When we asked about specific changes that have been made, it’s notable that only 32% took advantage of CARES Act tax items (like employee credits and payroll tax deferrals). These new tax laws can help improve liquidity, which is something that many companies are struggling with right now. Another way to improve liquidity and reduce costs is by completing a 52-week cash flow analysis, which 63% of our respondents indicated that they have completed at the time of response.
In a time when we are all experiencing the impacts of the pandemic in almost every aspect of our daily lives, it was encouraging to see that one out of three respondents said their organizations didn’t anticipate having to make any significant changes.
If you have any questions about how we can help you navigate the changing legislation around COVID-19 or any other accounting or tax matters, you can find our contact information at the end of this video or you may contact us here.
Full Survey Results
Here is a PDF of the full results of our survey, including breakdowns of responses by industry.
Looking for more COVID-19 resources? Visit our resource center for expertise on impacts to expect and how your business can respond.
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