The PCPS CPA Firm Top Issues Survey is a bi-annual study that identifies the most significant challenges facing practitioners across the country. It gathers information from a wide range of practitioners in firms of different sizes to spotlight the most critical concerns for PCPS members. This year, the PCPS CPA Firm Top Issues Survey included questions on the troubled economy and what it has meant to CPAs.
Based on the survey results, CPA firms appear to be weathering the storm remarkably well. When asked about the economy’s greatest effect on them, a solid proportion of firms with 20 or fewer professionals picked “no impact.” In fact, almost 25% of sole practitioners chose this answer. And a number of firms, including more than 10% of firms with 10 or fewer professionals, said that additional client services were one result of the economic crisis. It would seem that there are bright spots for some of the smallest firms even in uncertain times. Firms of all sizes did agree, by varying percentages, that the two most serious considerations for them were strains on accounts receivable and reductions in revenue. Firms with 21 or more professionals were the only ones to report issues with layoffs or staff reductions, although even in this group the problem seems to be minor.
What has been the greatest impact your firm has encountered during this economic crisis?
When projecting expected revenue in the year ending May 2010, roughly 45% to 60% of every firm segment expected some growth, a very encouraging response in the midst of a tough recession. Firms also generally expected little change in staffing this year, although the percentage varied widely by firm size. Overall, however, it’s safe to conclude that CPA employment should remain steady going forward.
What is your anticipated revenue outlook for the 12 months June 2009 through May 2010 versus prior year?
What is your anticipated employment outlook for December 2009 versus December 2008?
When planning ways to generate new business in a bad economy, increasing service to existing clients was the top choice of virtually every firm segment. The one exception was firms with 21 or more professionals, which set a top priority on getting more team members involved in the marketing effort. The second choice for most firms was using their relationships with spheres of influence, which was chosen by about 25% of all firms with 10 or fewer professionals and 20% of all other firms.
What is your firm's top priority for generating new business during this economic crisis?
Finally, firms were asked when they thought the economy would turn around. Most firms, no matter their size, feel the recovery won’t start much before fourth quarter 2009, with the majority in most segments believing it will happen in 2010. The largest firms—those with 11 to 20 professionals and 21 or more—were most likely to believe improvement would come at the end of 2009. At least 10% of firms in every size segment thought the economy was already improving.
When Do You Think The Economy Will Improve?
