Recession hits revenues at small firms hardest

But bigger firms more likely to cut staffing.

New data from the PCPS CPA Firm Top Issues survey shows firms generally faring well through the recession. About 10% to 25% of firms, depending on size, report “no impact” from the recession.

QUESTION: What has been the greatest impact your firm has encountered during this economic crisis?

Still, the AICPA reports:

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.

More at http://pcps.aicpa.org/Weathering+the+Storm.htm

One Response to “Recession hits revenues at small firms hardest”

  1. Chad Bordeaux

    I concur with these numbers. We have actually done a really good job of adding new clients over the past year, but a few of our existing clients are having trouble paying.