I think it will be in the details.(the details we were supposed to get today but maybe tomorrow now?)
Yes - a 30% drop in revenue "in the next few months" is very foreseeable.
But, will it be 30% over the year? my firm, and many like it I would assume, were having a particularly good first few months of 2020 (and a great 2019). My April and May are likely to look grim (billed February work in March - so March not actually bad at all from a revenue prospective). But once I am in April and looking at what I billed in March - ick.
Plus, many firms can adapt quite quickly to new markets and opportunities. So the rest of the year is a crap shoot.
Similarly, like TP said - you can adjust billing within a year- however, since 2017 it has been harder to adjust over the tax year as we now have to take an estimation of a portion of WIP into income in the year that the work is completed.
So it will come down to if the 30% is applied to the year or the month, a specific set of months ?
I am guessing that they will go with year as it is easier for CRA to calculate. In which case I doubt we will rely on it to make a decision on staffing - because who knows.
Wow, thanks so much to everyone on this thread for sharing. I'm a 2L and newbie to LS. This information has been very helpful in my understanding of how the legal community is being affected, and in turn, reshaped by this pandemic.