Accounting Sheds 3,600 Jobs in February

Seasonally-adjusted workforce declined to 916,800 in February.

That’s 3,600 off from January’s 920,400 headcount, and the February 2008 level of 947,000, according to today’s employment situation report from the Labor Department Bureau of Labor Statistics for the accounting and bookkeeping sector.

Accounting and Bookkeeping Employment - February 2010

But February’s decline follows a revised gain in January of 4,600 jobs.

Overall, the number of jobs in the U.S. fell by 36,000 last month, and the unemployment rate held steady at 9.7%. The jobs picture was probably hurt by February snowstorms. Still, the rate of job loss may be slowing. Last February, by comparison, the U.S. economy lost 726,000 jobs. Analysts expect the economy to start adding jobs later this year.

In the offices of CPA firms, in particular, data through January shows a workforce of 400,400 people (not seasonally adjusted), down from 405,600 in December.

Total Employment at CPA Offices - January 2010

For the year, CPA firms employed 415,500 people, down from 433,300 in 2008, and off from the peak 420,200 in 2007.

But the big story may be in taxes.

For tax prep businesses, 2009 represented a (not seasonally adjusted) gain to 114,000 annual workers, a new annual record, up from 2008′s 110,800.

Tax preparation offices

And in January the tax sector bulked up with a workforce of 251,600, also a record, and a huge leap from the year-ago 208,000 roster.

Payroll Business Decline

Payroll services showed  a (not seasonally adjusted) roster of 139,600 in January, down from 147,300 in the year-ago month. And for the full year 2009, payroll shops employed 151,100 workers, down from 167,500 in 2008 and off the record 169,200 in 2007.

Payroll Services

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Top Seven Growth Areas for CPAs

And four questions to seize the “high-leverage” opportunities.

After spending the last six months with CPAs all across the U.S., Maryland CPA association CEO Tom Hood has a thought or two  on where accountants can find new opportunities.

Hood

In fact, he has seven:

  1. Valuation
  2. Forensics and fraud
  3. Governmental
  4. International (IFRS and tax)
  5. Health care
  6. Green / sustainability
  7. XBRL

After gathering your own list, Hood says the next step is to assess which options are what he calls “high-leverage opportunities.”

What’s a “high-leverage opportunity?” Hood recommends asking these four questions:

  1. Are they a source of passion for us? (Do they fit your strategic plan, values and purpose?)
  2. Do they leverage our resources (customer base, talent, capabilities, etc.)?
  3. Do they create value in excess of the time, effort and resources needed to accomplish?
  4. Can they be accomplished?

The whole system is part of Hood’s I2A: Insights to Action, an increasingly popular strategic planning process and leadership development program for the profession.

“The two things all of the greatest management thinkers seem to agree on is that we must build on our strengths and focus on opportunities,” Hood says.

To get started on action plans, ask yourself:

  • Do you (and your team or partners) know your strengths?
  • How are you focusing and getting your team to agree on opportunities?
  • How will you align your partners and organization around those strategic priorities?

Via CPA Success.