Tax Season ‘09: CPAs Dodge a Bullet

Economy impacts end-of-season parties.

Are job cuts next? Join the survey; get the answers.

By Rick Telberg

CPAs closed out Tax Season 2009 last week feeling dazed, confused, weary and maybe even a little bit lucky.

Despite a dismal and dismaying economy, most tax practices were apparently bucking the recessionary downdrafts and mostly holding their own or even gaining ground.

So if you’re superstitious, kiss your lucky charm, knock on wood and throw some salt over your shoulder. Most CPAs seem to have dodged the economic bullet - at least for now.

In the last days of Busy Season 2009, 34% of 1,451 accountants surveyed were reporting better business than the year before, with 42% holding steady, and only 23% posting declines, according to the CPA Trendlines straw poll for the AICPA.

The 76% of CPAs reporting business as steady or better represents markedly stronger performance than 2008’s 66% or 2007’s 60% — making 2009 the best year for CPAs since 2006’s 81% net positive rating.

HOW WAS YOUR BUSY SEASON?

WHAT’S NEXT FOR THE PROFESSION IN THIS ECONOMY?

Join the survey; see the results.

(Free. Confidential.)

To be sure, many accountants are worried about their clients and about getting paid. And their busy season is getting longer with an ever-increasing number of extensions.

Furthermore, many firms will be scrambling in the coming days to re-fill a depleted business pipeline for the traditionally slow summer months. But in these recessionary times, CPA firms are generally among the survivors.

Still, CPAs are concerned. And you may be hearing about some significant reductions in force at a few firms whose fortunes are disproportionately tied to especially volatile segments of the economy, such as banking, housing or construction.

“The firm is firing or has fired 15 percent of its professional staff,” according to a senior partner at a major firm, which is forecasting no improvement in the economy until the second quarter of 2010.  “First our customers,” he says, “then our firm, will bounce back.”

At another firm — a mid-sized one — they hired additional staff going into busy season, according to a high-level partner, “which reduced workload and stress.”

“Now,” he adds, “we have to figure out what to do with everyone during the summer months.” He’s expecting some “slight” staff reductions and an intense drive “to replace lost revenue due to the economy.”

At a smaller mid-sized firm, they’re feeling the repercussions of their clients’ problems. “Clients were much more apprehensive about the economy” this year, according to one partner. And it’s easy to understand why when he adds, “We are seeing a 7 to 8 percent drop in revenue for our clients.”

Nevertheless, CPA firms are coming out of busy season relatively strong. The recession may have hit hardest during the accounting busy season, softening the blow. The vast majority of CPA firms are expecting to weather the recession intact and unmarred.

“The economic climate is rough and people are not happy,” says a senior staffer at a regional firm. But the “forecast is for slight improvement” with “no additional hiring.”

At Dauby O’Connor & Zaleski CPAs in Indianapolis, partner Ted Zaleski reports, “We expect to expand and add staff.”

Staying productive and positive may have been one of the biggest personal challenges through a tumultuous tax season.

But for Rich Levy at Levy & Associates in Fairfax, Va., his feelings of grace and gratitude come daily. “My office is upstairs from a kidney dialysis franchise,” he says. “It’s easy to stay positive when you see real adversity on a daily basis.”

NEXT QUESTION: Now that tax season is over, what’s next for accountants in this economy? Join the poll; get the answers.

Comments: Questions, ideas, rants or raves? Send email to Rick Telberg here.

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Posted on April 20, 2009
Filed Under BSG [CPA TRENDLINES] | 1 Comment

SURVEY RESULTS: Tax Season 2009 - Feeling lucky it wasn’t worse

Most practitioners did as well or better than last year, according to survey.

Here’s your sneak peek of the results, tabulated in real-time. As always, thanks to the participants for joining the survey panel. We’ll keep you posted

If you haven’t already joined the survey panel, you can do it now: join the survey; get the sneak peek updates


Compare these latest results to last year’s:

Add your comment here, then join the survey; get the sneak peek updates.


Related:

More:

[Research by Bay Street Group LLC. Data Copyright AICPA 2009.]

Posted on April 19, 2009
Filed Under BSG [CPA TRENDLINES] | 9 Comments

Is Your Job Safe after Tax Season?

Economy impacts end-of-season parties.

Are job cuts next? Join the survey; get the answers.

By Rick Telberg

The economy is clearly cutting into the profession’s traditional post-busy-season celebrations.

Accountants have never been known for their wild parties. But this year, firm-sponsored get-togethers are decidedly low-key and individual celebrations seem much more toned down.

To be sure, some firms are looking at their work calendars, finding less than expected for the upcoming months and looking at some belt-tightening. Indeed, the post-busy-season reductions in force could be especially broad and painful this year, considering the continuing repercussions of an economy still in freefall.

HOW WAS YOUR BUSY SEASON?

WHAT’S NEXT FOR THE PROFESSION IN THIS ECONOMY?

Join the survey; see the results.

(Free. Confidential.)

One accountant told me that her firm will hold their party, as usual, at a local restaurant. But the story is different at home.

Read more

Posted on April 16, 2009
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

Goodbye and Good Riddance to Busy Season 2009

Planning for the Tax Season After-Party.

By Rick Telberg

From the famed Peter Luger Steak House in New York to the not so famous Crazy Pinz bowling lanes in Fort Wayne, Ind., CPAs are planning for the day after April 15th.

It’s been a tough season, beset by a widening economic crisis that has left clients worried or worse and their CPAs in much the same condition.

Still, about 33 percent of the 1,249 accountants who had taken our survey through April 6 term it better than last year’s, with 22 percent calling it worse and the rest “about the same.” We’ll be reporting more details on the season in coming weeks. Be sure to join the survey to get all the results.

HOW WAS YOUR BUSY SEASON?
HOW DOES IT COMPARE TO YOUR PEERS?

Join the survey; see the results.

(Free. Confidential.)

With deteriorating business conditions and distressed clients, accountants are more worried than in years past about getting paid in full or on time. And, worried too, about how much new work will be available this summer and into the fall.

Read more

Posted on April 13, 2009
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

Why Your Clients Need Your Optimism

As many busy season clients - individual and corporate alike - get hammered by a crashing economy and uncertain business conditions, CPAs are doing their best to help.

by Rick Telberg

“Clients are overwhelmed by the current state of the economy, imploding asset values and credit issues,” according to Daniel J. Domancich, a CPA and CFP in Huntington Beach, Calif. The best you can do, he advises other CPAs, is: “Stay positive.”

“Make sure you are adding value to your services,” Domancich says, “by offering personal, attentive, proactive and knowledgeable services.”

Read more

Posted on April 1, 2009
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

Counting Down to the End of Tax Season

How will accountants celebrate the Busy Season 2009 Finale?

What are your plans? Comment here. Then join the survey and get all the answers.

by Rick Telberg

How you celebrate can depend on what you’re celebrating, particularly if you’re celebrating the end of busy season 2009.

There will, no doubt, be parties and much rejoicing. Maybe even some dancing, and, dare we say, drinking? So it’s time to start chilling the champagne and booking the rooms. The end of busy season is within sight.

The celebrations, like accountants and accounting firms, come in all favors and styles.

Take, for instance, Mark Borel’s small practice in Reno, Nev. One year recently, his post-season celebration plans included a staff lunch, after which all the ladies were sent to a spa for all-afternoon treatments. And then the shop was closed for a three-day weekend.

Read more

Posted on March 19, 2009
Filed Under BSG [CPA TRENDLINES] | 5 Comments

SURVEY RESULTS: Tax Season Workflow Trends Show Improvement

Most tax professionals are having at least as good or better season this year. But the economy threatens fees and collections.

Join the survey; get the updates.

The latest data show for the week ended March 15, 34% of practitioners report the season is running “better” than last year’s season, up from 25% in the previous week, ended March 8.

Meanwhile, the number reporting “worse” conditions dropped to 21% from 27%. And the “about the same” has remained, well, about  the same.

(Week ended March 15 2009)

Economic problems seem to be characterizing Tax Season 2009, with about 73% of accountants now calling it a real challenge, compared to about 62% a month ago.

Clearly, accountants are more worried about matching last year’s revenues and profits — and, to an extent, to getting paid at all.

And that’s borne out in the comments. A sampling:

What’s different about this year?
(sample verbatim)

Leave your comment below. Then: Join the survey; get the updates.

Related posts:

[Research by Bay Street Group LLC. Data Copyright AICPA 2009.]

Posted on March 15, 2009
Filed Under BSG [CPA TRENDLINES] | 3 Comments

SURVEY RESULTS: CPAs’ Best Advice for Busy Season

Busy season this year comes amidst the worst economic crash in a generation. How are CPAs handling it?

Actually, not too badly. At least not yet.

True, the economy remains the biggest worry, and collections could become an issue. But CPAs are focusing like lasers on their clients. Here’s a pictograph of the verbatim answers we’ve been getting to our Busy Season 2009 survey (Join the survey; get the updates):

It shows clearly that CPAs remain more focused on service than cuts - although those could come eventually.

Read more

Posted on March 2, 2009
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

The Big Tax Season Worry Is Post-Season Collections

How big a problem will it be? Leave a comment, then join the survey; get the answers.

by Rick Telberg/At Large

The economic crash is taking its toll on CPAs this busy season, with clients running late, coming in disorganized and worried about paying their fees.

As a result, CPAs are working as hard as ever, but remain concerned about collections from tax-season business and a post-season drop-off in new billings.

Indeed, last year at this time, when the economic downturn looked like a mere blip, only about a quarter of accountants in our surveys mentioned general business conditions as an issue. So far this year, it’s the single biggest concern for accountants, with almost two-thirds citing the general economic situation as one of their chief concerns.

“Clients are slower than in prior years in bringing in their information,” says the owner of one small firm, who worries “that I will be unable to collect from clients for work performed.”

Read more

Posted on March 2, 2009
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SURVEY RESULTS: Clients Make the Difference

The recession may be the single biggest factor affecting tax professionals in this year’s busy season.

But, in the end, it’s all about clients. Ask a CPA, “What the biggest difference about your tax season this year?” And, collectively, they’ll draw you a picture that looks like this:

No doubt, the deepening recession is the biggest problem for CPAs this year. By comparison, last year at this time, the economy was a major problem for only about 26% of professionals. Clients are coming in later than usual, usually more more disorganized and worried about covering the fees. Professionals are racing to stay up to date with all the breaking news and worrying about billing and collections.

How’s busy season for you so far? Leave a comment below. Then join the survey and get the updates.

Posted on February 26, 2009
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

SURVEY RESULTS: Busy Season in the Crash of ‘09

The deepening recession is the biggest problem for CPAs this year.

BY far, most practitioners say the “general economic situation” is their biggest challenge this year, followed distantly by getting up to date with tax code changes and late and disorganized clients and client information.

Here are early and partial results from our ongoing tracking polls…

By comparison, last year at this time, the economy was a major problem for only about 26% of professionals. Clients are coming in later than usual, usually more disorganized and concerned about covering the fees. Professionals are racing to stay up to date with all the breaking news and worrying about billing and collections.

How’s busy season for you so far? Leave a comment below. Then join the survey and get the updates.

Posted on February 24, 2009
Filed Under BSG [CPA TRENDLINES] | 3 Comments

10 Reasons to Hate Tax Season

And 7 ways to learn to love it instead.  How’s YOUR tax season so far? Join the survey, compare results with your peers.

By Rick Telberg/At Large

Tax professionals may be embarking on one of their busiest busy seasons in memory, fraught with a rapidly sinking economy, traumatized clients and a turbulent tax and regulatory environment.

From my experience, the most important thing CPAs can do at this time is to be there to hold their client’s hand, gain a full understanding of their goals and anxieties, and plot new strategies together.

HOW’S YOUR BUSY SEASON?

Join the survey; compare results with your peers.

(Free. Confidential.)

Read more

Posted on February 9, 2009
Filed Under BSG [CPA TRENDLINES] | 5 Comments

How to Turn ‘Busy’ into ‘Opportunity’

Savvy CPA tips for getting the most out of tax season 2009.

By Rick Telberg/At Large

Tax practitioners are digging into what may be one of the busiest busy seasons in memory. A tanking economy, investor losses, a new government and bailout and stimulus packages are combining to create a fast-0changing landscape.

But if it’s “busy season” then it’s also “opportunity season.” This is the time when clients and companies most rely on CPAs. And it’s a time for CPAs to have the most impact on the lives of their clients on their own careers and practices.

Read more

Posted on February 2, 2009
Filed Under BSG [CPA TRENDLINES] | 1 Comment

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