The U.S. tax, accounting and bookkeeping industries are turning out to be one of the brightest spots in the nation’s economy, adding jobs faster than all but a handful of sectors, according to CPA Trendlines sources. Here CPA Trendlines reports on: Current hiring trends in each of the bookkeeping, tax, payroll and CPA segments of the industry. Average hourly wages for key segments. Typical hours worked per week. And trends concerning women in the accounting workforce.
Topic: economic trends
Accounting and bookkeeping sector adds 17,800 jobs in May. In the biggest single-month gain since the recession, the accounting industry added almost 18,000 new jobs in May, bringing the total headcount to 926,300, a 29-month high. In fact, accounting was one of the few bright spots in an otherwise disappointing jobs report.
Expansion through the downturn. Industry research firm IBISWorld identifies the top 10 fastest growing industries from 2000 to 2016. “After compiling the list of fastest growing industries, there were some apparent trends,” explained IBISWorld Senior Analyst Casey Thormahlen. “Each industry on the list experienced growth as a result of one or more of four drivers: Internet growth, environmental issues, cost cutting and evolving technology.” 1. Internet Growth It is no surprise that voice over internet protocol (VoIP), e-commerce and online auctions, and Internet publishing and broadcasting top the list. Each is being supported by the increasing popularity of the Internet for communication and business transactions.
Despite economic recovery, many firms seem unable to capitalize on new opportunities. Click here to join the Tax Season 2011 survey; get the results. Tax accountants are finishing the 2011 busy season with stronger results than they expected, but – perhaps surprisingly — not as strong as last year, despite somewhat improved economic conditions. CPA Trendlines research suggests that many accounting firms may have over-reacted to the 2007 market crash by cutting staff and billing rates, leaving them unprepared to capitalize on the opportunities of the 2011 recovery.
But no recovery until 2012. via AICPA After a dramatic drop last quarter, CPA executives regained modest optimism in the past three months about prospects for the U.S. economy but believe the recovery will be slow and they are cautious about plans for expansion and hiring, according to the latest AICPA/UNC Quarterly Economic Outlook Survey. Twenty-eight percent of CPAs serving in executive positions expressed optimism about the U.S. economy in the fourth quarter, up 7 percentage points from 21 percent who were optimistic in the third quarter. Pessimists were 29 percent, a decline of 11 percentage points from the prior quarter. Most CPA executives, 43 percent, were neutral on the economy. A majority of 61 percent do not expect business […]
Accounting and bookkeeping sector hits new low. Accounting and Bookkeeping, All Employees, in Thousands As the nation’s overall unemployment rate ticked upward to 9.8% in November from 9.6%, the number of jobs in the accounting and bookkeeping sector declined by another 1,600 to a preliminary seasonally-adjusted 876,000, according to the Bureau of Labor Statistics. It’s a new post-crash low.
Zero employment growth: “one of the best performances in years.” via NFIB The National Federation of Independent Business Index of Small Business Optimism gained 2.7 points in October rising to 91.7, not a huge move, but at least a decent jump, perhaps anticipating an acceleration in economic activity. Still, the Index remains in recession territory. Consumer spending and consumer sentiment remain weak, indicating that top line growth on Main Street will remain sluggish. The profit picture did improve, supported by increased reports of quarter-to-quarter positive sales trends. However, both sales Index components are still very negative historically but are heading in the right direction. Employment Average employment growth per firm was 0 (zero) in October, one of the best performances […]
78% see no recovery for two years. via TD Bank Sixty-nine percent of chief financial officers and other corporate finance managers at mid-sized businesses say that it’s the intense challenge of managing cash flow that worries them the most, according to a survey conducted by TD Bank. Proper capital allocation and cash flow management will also be next year’s top financial management priorities for 41 percent of respondents.
‘Dealing with the recession has not been pleasant or easy.’ Steve Erickson www.SteveEricksonLLC.com The “Great Recession” has reduced the spending of countless millions that has a negative impact on the clients we serve. As a result, our revenues have been relatively flat or decreasing, while our costs have continued to rise. This trend will have to be reversed if we are to remain viable and able to serve our clients successfully. Here are some of the major trends: Pricing has moved substantially from a cost-plus model, in which a multiple of a person’s hourly salary was charged for services to a fixed fee, for many of the services we provide at a time when regulatory agencies are imposing ever increasing […]