With small accounting firms coming out of a tough tax season, Hugh Duffy figures this would be a good time to look ahead for the balance of 2010.
Duffy, a practice development adviser, outlines his forecast at The Progressive Accountant, starting with…
The Top Three Economic Trends
1. The current recession has many small accounting firms on edge because the duration of this recession has been so long. Since 1854, the average length of a U.S. recession has been 17 months from peak to trough, according to the National Bureau of Economic Research. For perspective, the Great Depression lasted 43 months. Our current recession started in December 2007 and the end is not yet in sight. And when things improve, economists are saying it will be gradual. To compound this issue, there is still a liquidity crisis which makes it difficult for the small business market to pick up the slack and reverse this crisis.
2. Shift in type of employment. Small business employers are shifting from full-time employees to part-timers, freelancers, outsourced services, partnership arrangements and other forms of contingent workers.
3. Micro-Businesses will rise. As more and more skilled workers are on the sidelines and become disenchanted with the prospects for gainful employment, there will continued increases in micro-businesses (solo owners with no employees). This movement will be fueled by the Internet, low-cost of technology, and ease with which a home-based business can be created.
And these…
4. Top 100 firms will reduce overall staff levels another 3% to 7% this year.
5. Small accounting firms will dramatically increase use of Cloud Computing, SaaS, portals and hosted solutions.
6. Microsoft 7 and Office 2010 will fuel replacement of dated computer equipment.
7. The army of un- and under-employed accountants will create a new wave of small and solo start-ups.
8. Shifting away from staffing and retention, firms will drive sales, marketing and business development into high gear.
9. The march toward paperless accelerates and broadens.
10. With the bleak economic outlook, the trend towards home-based businesses surges.
11. Local non-profit membership organizations (networking type) will see continued declines in enrollment as networking tools (LinkedIn, Facebook) make it more efficient online and cheaper.
See the details at Top Trends for Small Accounting Firms in 2010.
