OUTLOOK & ANALYSIS

Staff Wages Hit Record High

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line chart
Payroll services staff hourly earnings

Their bosses aren’t seeing the same increases.

By Beth Bellor
CPA Trendlines Research

Going into the New Year, the average American is doing somewhat better. Earnings are up a bit; unemployment is down a bit.

MORE: Despite Staffing Crunch, Firms Freeze Pay Raises | Tax & Accounting Firms Grow for 9th Straight Month | Tax & Accounting Profession Grows, but Wages Don’t | Tax and Accounting Pay Advancing at 5.9% Pace | Accounting Jobs Up 4% for Year
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For employees in the tax, accounting and bookkeeping business, things are more complicated. Pay for employees overall? Usually down, way down. But pay for staff in every sector? All-time highs.
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Firms Must Choose Best Workplace Model

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man sitting at desk in otherwise empty office, facing glass wall

What will help you move forward?

By Kristen Rampe
The Rosenberg MAP Survey

EDITOR’S NOTE: Every year, the Rosenberg MAP Survey asks the industry’s top consultants to share their observations from CPA firms across the country. How do you think the next 12 months will unfold? Also, how would you assess the last 12 months?

The obvious: Staffing challenges will continue. Firms that are stuck in their old ways must add younger talent with the ability to influence leadership ranks. Senior partners who are seeking an internal buyout, or better priced external sale, need to recognize how essential this is.

MORE: Tech, Capital Will Drive Accounting Profession Growth | New Energy Comes from New Ways of Doing Business | AI for Accounting Automation Will Be Significant | A 40-Hour Workweek Is Feasible | It’s Time for a New Business Model
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Less obvious: Workplace models will continue to be varied, and there is no one-size-fits-all. I have clients who hardly went home during COVID-19, and their staff have to be asked to work from home to free up office space for a growing team. I also have clients with thousands of square feet of vacant office space because no one has returned. Of both groups (and those in between), some have critical failures in productivity. Some are crushing it.
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Tech, Capital Will Drive Accounting Profession Growth

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Business hand holding hot chart in crystal ball

How much? Faster than the rest of the economy.

By Terry Putney
The Rosenberg MAP Survey

EDITOR’S NOTE: Every year, the Rosenberg MAP Survey asks the industry’s top consultants to share their observations from CPA firms across the country. How do you think the next 12 months will unfold? Also, how would you assess the last 12 months?

The private equity model is still unproven in the minds of many CPA firm partners as there are no examples of a secondary market for the investors of CPA firms. Private equity investors in other professional disciplines like veterinary, dental and engineering have experienced success with attracting secondary and tertiary investors.

MORE: New Energy Comes from New Ways of Doing Business | Outsourcing, Remote Work Will Help Firms Grow Capacity, Revenue | Private Equity Leading to Corporate-style CPA Firms | PE, Consolidations to Keep Impacting Accounting Profession | A 40-Hour Workweek Is Feasible | Five Ways Staff Shortages Are Changing Firms Forever | Soft Skills Are Front and Center
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Until we see that happen in accounting, there will remain some skepticism about the viability of this business model. It is not my skepticism. But accounting firms that are considering private equity are expressing that as one of their concerns.
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New Energy Comes from New Ways of Doing Business

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two women having business discussion in front of laptop; wall of windows in background

One idea: a client service coordinator.

By Tamera Loerzel
The Rosenberg MAP Survey

EDITOR’S NOTE: Every year, the Rosenberg MAP Survey asks the industry’s top consultants to share their observations from CPA firms across the country. How do you think the next 12 months will unfold? Also, how would you assess the last 12 months?

While everyone is cautiously watching the economy, client needs and demand for accounting and advisory services continues to increase. Firms have to figure out how to run their practices differently to be available to do more with clients, help them solve problems, and make the shifts they need to make, too.

MORE: Outsourcing, Remote Work Will Help Firms Grow Capacity, Revenue | ‘Great Shakeup’ in CPA Firms on the Way | PE, Consolidations to Keep Impacting Accounting Profession | Soft Skills Are Front and Center | It’s Time for a New Business Model
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While 2023 busy seasons may have been “better,” a lingering fatigue continues. Firm leaders who are focused on new ways of doing business, staffing and serving clients will find relief and the ability to focus on important initiatives in their firms. And empower young partners and managers to try new things and lead change initiatives. They can see what’s possible and will make it happen.
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Accountants Torn Over 2024 Economy, Offer Advice

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bar chart

They’re of two contradictory minds. Hmm…

By CPA Trendlines Research

America’s CPAs are perceiving a paradox for next year’s economy.

They think their firms will do well.

MORE: Accountants Bullish on Income | CPAs Culling Clients for Better Work-Life Balance | Are You Offering the Right Services? | Which Niche’s the Best Niche? | Women-Owned Businesses Upbeat but Need Help | 42% of Accountants Turn Away Work Over Staff Shortages | Ethics on Sustainability Puzzle Some Accountants | Accountants to the Rescue as Startups Struggle
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They think their clients might be OK.

But the rest of the country? Not OK.
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