How Do Federal Policies Affect The Accounting Industry

231 Words1 Pages
Federal policies can affect the accounting industry in many ways; the impact depends on the type of the policy. Stricter policies usually cause greater workloads in the financial industry, because it takes time and effort to adapt business practices to ensure that the new policies are being followed correctly. For example, the Environmental Protection Agency (EPA) often requires a company or industry to upgrade equipment and to use more expensive processes to reduce environmental impact. These types of policies often result in confusion and turmoil in the stock market and overall instability in the financial sector as the policies take effect. Businesses usually try to move their increased costs to their consumers or customers, which is another