Now second only to oil drilling as nation’s most profitable industry. A new analysis of financial statements shows tax and accounting businesses are improving their net profit margins despite an otherwise harsh economy, according to new data obtained by CPA Trendlines.
Topic: economic trends
A sign of a full economic recovery for the profession? by Rick Telberg Exclusive to CPA Trendlines CPA firms are shaking off the effects of years of a fee-cutting death-spiral that halted growth, pinched profits and forced painful staff reductions. Instead, firms are now pushing through some of the most aggressive price increases in years, led by audit services, followed by tax prep, bookkeeping and compilations.
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Corporate CPAs turn sour on economic outlook…
Best August ever. by Rick Telberg The U.S. accounting and bookkeeping sector of the economy added 3,500 new jobs in August bringing the full-time workforce in the industry to 955,000, a new all-time record high for the month, according to preliminary new data obtained by CPA Trendlines. RELATED INSTANT DOWNLOAD – 2013 Salary Guide JOIN THE SURVEY, GET THE RESULTS – The CPA Careers and Hiring Outlook: Job Satisfaction and Retention Benchmarks JOIN THE SURVEY, GET THE RESULTS – Top Talent Strategies: How to Identify and Develop Professionals for Management and Leadership Responsibilities In addition, the CPA Trendlines analysis shows:
Business is good, but CPAs say the workload never eases up. by Rick Telberg CPA across all areas of the profession this summer are confirming the best hopes and worst fears that the profession felt when the year was beginning. Yes, business is up across all sectors and should continue to improve, especially for public practice firms, but there are not enough people to handle the work. Our readings are showing that two-thirds of CPAs in all sectors of the accounting profession are enjoying better business than last year. Asked to look 12 months into the future, roughly the same number expect their business conditions to be even better, although members in public practice are slightly more optimistic than members […]
Marking the fourth consecutive month of decline, the bookkeeping and accounting industry contracted in June, shedding 4,200 full-time employees from May, ending at total employment of 954,800 workers and professionals, according to new data available to CPA Trendlines. Still, June’s employment level represented a 2.5% expansion over the June 2011 level, representing the 16th consecutive month of year-over-year gains for the industry. Overall, the nation’s unemployment rate remained unchanged in June at 8.2% as the economy added about 80,000 new jobs, far short of making a dent in the 13 million jobs lost beginning five years ago with a mortgage meltdown and a financial crash.
Bold growth tactics, big partner cuts. The nation’s 100 largest tax and accounting firms have reversed revenue losses and are accelerating growth in a highly competitive market by relying on a mix of merger, acquisition and selling strategies, according to a new survey and analysis. In a year marked by “blockbuster mergers,” Accounting Today reports top-line revenue advanced 7.9% for the 100 largest firms operating in the U.S., clocking in total fees of $45.8 billion. Among the Big Four, revenue grew 8.2% to $436.2 billion. This year’s advances mark a turnaround from back-to-back retreats.
But professionals aren’t sorry to see them go. The number of taxpayers who are preparing their returns themselves is surging 9.9% over a year ago, according to new data obtained by CPA Trendlines. Meanwhile, the number of returns filed by professionals is advancing only 1.4%.
The economy turns a corner. According to a survey of U.S. accounting firms by Sageworks, 92% of financial professionals believe that businesses will either maintain or increase their employee count in 2012.