Blog: AICPA Economic Crisis and Recovery Center

AICPA Economic Crisis Center renamed

The AICPA’s Economic Crisis Resource Center’s name has been changed to the AICPA Economic Crisis and Recovery Center (ECRC).  This recent change was based on current conditions indicating a recovery has begun.  Fed Chair Ben Bernanke said in a recent speech at the Brookings Institute that he believes the recession is over though recovery will take a long time.

Unemployment seems to be holding steady, but isn’t going down. The market continues to be on the rise, though seems to be sensitive to every little financial news story that breaks. Full recovery (if there ever is such a thing) will take some time and we’ll all need to be patient.

The CPA community will be sought after to help their clients and the companies they work for recover. The ECRC is a great source of information to help CPAs through the recovery process. Previous articles, podcasts and resources focused on surviving the recession. Now the ECRC will focus on helping CPAs and their clients and companies get through the recovery faster.

On the employment side, the AICPA Job Finder is still offering free posts to CPA Firms looking to fill CPA positions.  Now’s the time to get your resume up on the Job Finder.  There were 150 jobs available on the site this week.  If you are a CPA Firm who will need to staff up for tax season, now’s the time to get that job posted while the postings are still free.  As a profession, we’ve been fortunate that the layoffs in our profession haven’t been widespread, but there are still good CPAs out there in need of work.

The Journal of Accountancy has a great online article titled “The U.S. Economic Crisis: Root Causes and the Road to Recovery” that discusses the excessive consumer spending and low savings rate at the center of this recession.

What are you doing to recover from the recession? Post a comment.

– Mark Koziel

AICPA/UNC Kenan-Flagler Business & Industry Economic Outlook Survey update shows continued optimism from C-Suite members

In keeping with the past, I thought I’d let you know the latest results (3^rd Quarter) of the AICPA/UNC Kenan-Flagler Economic Outlook Survey are available on the AICPA Financial Management Center.  On April 28^th my blog post was about the first quarter’s survey results and on May 21^st my blog post was on the second quarter results. The AICPA C-Suite members surveyed continue to show signs of improvement in the economy.

Respondents who were pessimistic about the economy dropped from 53% in the 2^nd quarter to 41% in the 3^rd quarter.  Pessimists still outnumber optimists, but it’s a good sign that the total number have dropped.  It does take time to shift opinion and the move from pessimistic to neutral can be considered a positive shift.  Hopefully by the 4th quarter, we will see optimists outnumber the pessimists.

While there were some positives, there is also some caution.  Respondents have pushed back their belief on when the economy will improve with over 60% responding with either 1st half or 2^nd half of 2009.  Over 10% believe recovery won’t begin until 2011 or later.

Similar to the 2^nd quarter results, respondents were more optimistic about their own organization’s recovery than the overall economy, showing signs that some companies may already be on their way out of the recession.

The news does continue to get better.

Are you seeing signs of recovery in your business? What are some of the signs of recovery that you are seeing? Post a comment.

– Mark Koziel

Small business is the place to be!

One of my AICPA colleagues sent me a news brief on a recent study conducted by CareerBuilder.com.  The study found that four in five laid off workers either landed, or were searching for work in the small business sector.  That stat may be slightly misleading since only 1 in 5 or 22% of the survey actually found work in the small business sector.  Another 59% said they are interested in landing work in the small business sector, though I’m sure they’d take whatever was available.

Fact is, small business these days seems like the place to be.  The study cited the following characteristics (in addition to career growth) that appealed to the survey respondents:

• A family-like work environment - 56 percent
• More employee recognition - 49 percent
• A sense that you can make a difference - 48 percent
• An absence of corporate red tape - 46 percent

Down economies have spurred small business in the past and the current recession seems to be doing the same.  In fact, there seems to be a growing interest in CPAs starting their own practice.  The Private Companies Practice Section of the AICPA has a Starting a CPA Practice page that provides fledgling entrepreneurs with some helpful hints in getting started with their own firm.  This webpage was launched in April, 2009 and has had over 1,000 visits from April through July.

For CPAs who are looking for a new position, I’ve reported in the past that small firms have been affected less by the current economy than their large firm counterpart.  I’ve spoken to several small firms around the country who are looking for good talent to help in their practice.  Every time I point them to the AICPA CPA Job Finder where the AICPA is still offering CPA Firms with free job postings to help firms and individuals find each other during this tough economy.

Question of the week
If you work for a small business or are looking to work for a small business, what is it about a small business/small firm that you like the most? Post a comment

– Mark Koziel

Is the Stimulus Plan working?

The USA Today conducted a poll asking Americans if the stimulus plan is working.  Of 1,010 adults surveyed from August 6^th through 9^th, 57% say the stimulus package has had no effect or made the economy worse.  Over the long term, 60% think the stimulus package will have no effect or make the economy worse.

Economists are still saying the economy would have been worse without the stimulus, though they vary in how much the stimulus has helped.  The poll will make for great debate in Washington, D.C., as the continuation of stimulus measures are contemplated.

Comments we have received on prior blog posts have been thoughtful and instructive and would like to see that continue with this one.  I have two questions and you must answer both!  Since many of you reading this blog are CPAs — recognized financial experts — your input is important.

• Question 1 – Do you believe the stimulus efforts have helped the economy?
• Question 2 – What would you do to spark the economy?

Post a comment

– Mark Koziel

Have you traded in your clunker?

Last week Congress passed a bill to extend the Cash for Clunkers program.  There has been some debate over the success of this program and whether it should have continued.

For auto dealers, the boost in potential car sales has helped.  But some argue this is a temporary blip and the sales would’ve taken place at some point in the near future, so the economic impact will be very short term at best.

I have to admit that the program made me think about trading in my 2005 Subaru.   Of course, based on my buying habits and taste, I’ll never qualify for the program since I can’t show any improvement in gas mileage as I always strive for some level of fuel efficiency.  It certainly was a sensible decision in light of last year’s gas prices!

However, there is a down side to the clunkers program that hasn’t gotten much attention.  Not-for-profits that were taking clunkers for donations are now suffering.  At a time when charities were seeing a decrease in cash donations, they are now also seeing a decrease in vehicle donations as well.

Do you think the Cash for Clunkers program is helping the economy overall?  Do you think it was a good idea to extend the program?  Tell us your thoughts.

– Mark Koziel

What are your hiring expectations this fall?

I can’t believe it’s August already.  The summer soon will give way to fall when many CPA firms and businesses should be gearing up for campus recruiting.  Will fall recruiting be at prior year levels?

Last week, the AICPA launched its newly designed student website, www.startheregoplaces.com, and it looks terrific.  As college campuses are seeing accounting graduates in record numbers, it’ll be more important than ever to go out and recruit the best and brightest to make sure we continue to fill the talent pipeline of new CPAs.

Your organization is probably fully staffed right now, no matter how big or small, there’s talent out there that can help.  CPA firms still have the ability to post jobs for free on the AICPA’s CPA Job Finder. If you have a job to post, email pcps@aicpa.org for the instructions for the CPA Firm free job post.

Even if you are fully staffed today, it is critical to our profession to move students out of the graduate pipeline and into the work pipeline.  Small firms who may not have been in the recruiting game before should consider getting into it now.  The AICPA’s Private Companies Practice Section (PCPS) has extensive resources to help CPA firms of all sizes with their recruiting needs.  The PCPS Human Capital Center has a Recruiting Section for its member firms with tools and resources.  There is also a preview into those tools and resources in the PCPS Human Capital Series Toolbox.

Let us know what your CPA firm or organization is up to this fall.  Do you anticipate hiring the same, more or less new recruits than last year? Post a comment.

– Mark Koziel

Is the housing bust over?

Yesterday, CNN reported that new home sales soared in June over May.  Could this indicate that the housing bust has ended?  The news story mentioned that while the new home sales were up 11% in June over May, the median home sale price was down 3%.

It’s uncertain how much Stimulus incentives for new home buyers helped spark the sales surge, and I’m sure you can get varying opinions about whether or not the stimulus plans helped.

Whether it did or didn’t isn’t as important as seeing the housing market starting to open up again.  The result could be banks freeing up credit to potential homeowners which will then hopefully free up commercial credit to home builders as they are able to sell off inventory.

I’m not sure what will quantify an end to the housing market issues.

Do you think this is a sign of the end of the housing bust?

Do you think the increase can be attributed to the Stimulus incentives?

Leave a comment and give us your thoughts.

– Mark Koziel

Are your job skills ready to meet the challenges of the next generation?

A friend of mine called me over the weekend.  He was checking out the job posts on the AICPA web site and stumbled upon the Social Media Specialist job post.  Turns out this type of position is becoming quite popular.  According to Revolution Magazine, Best Buy is seeking a “senior manager – emerging media marketing” and requires, in addition to the proper education, 250 followers on Twitter.  Hey wait…I only have 83 followers on Twitter.  I wouldn’t qualify!

So it made me think, what new skills must we possess in today’s marketplace?  What new technologies do we need to know as CPAs?

For CPAs, skills that may be hot in the future include a working knowledge or training on IFRS. CPAs may also want to consider expanding their experience in forensic accounting, and perhaps even seek to complement their professional qualification with the new CFF credential from the AICPA.  As far as software, knowledge and experience in driving a paperless conversion continues to be a hot topic.  We also hear CPAs say that sharpening their skills on the latest trial balance and tax software is essential.  What about the latest G/L packages out there?  Keeping up with changing software is a must.

What new skills are you working on to stay current to the profession? Post a comment.

– Mark Koziel

Federal Government considers TARP money for small business

The Washington Post reported that the federal government is considering making some of the $700 billion in the Troubled Asset Recovery Program (TARP) available to small businesses around the country.  There aren’t any details behind what is being proposed, but, according to the article, the Treasury Department seems to be in favor of the idea while the National Economic Council seems skeptical.

The article discusses the fact that some in government feel that small business America will be the sector to help spur the economy out of this recession.  Some economists estimate that small businesses employ 60-80% of the workforce and if the small business community can access funding for growth and employment, the economy will get back on track.

There’s been some question on the effectiveness of the initial stimulus package and the potential for a second stimulus bill.  It isn’t clear whether this use of the TARP funds is a way to avoid another stimulus bill. It sure seems to make sense if the funds are there and this will get the banks lending at a faster pace so small businesses can access credit to stay afloat or even expand.

Be sure to watch as this story continues to develop over the coming weeks.

Do you feel small business lending is a proper use of the TARP funds? If you work for a small business or have small business clients, what’s the greatest need to help you grow and increase employment right now? Post a comment.

– Mark Koziel

Client Retention at the Top of CPA Firms’ Minds

This week, the AICPA’s Private Companies Practice Section (PCPS) announced the results of the 2009 CPA Firm Top Issues Survey. This survey asks firms of all sizes to rank their top practice management issues. The results are provided by firm size and provide the AICPA’s PCPS section with critical information to focus future deliverables.

For the first time in several years, recruiting and retaining talent did not top the list for firms with 2 or more professionals. Nor did tax complexity top the list for sole practitioners. Instead, client retention was the number one issue facing all firms. There’s little doubt the economy has something to do with this and it comes as no surprise to me.

I’ve confirmed this issue with many practitioners from around the country and there seems to be a few reasons for this concern. Some have said clients are looking at their fees to try and reduce costs and are leaving for a small decrease in fees. Companies of all shapes and sizes (including CPA firms) are looking for ways to reduce costs.

As firms grow increasingly concerned over losing clients, the firms who are surviving, maybe even thriving during this economy have found that client retention really comes back to client service. During the last few years, when firms were extremely busy, focusing on getting the work done became a greater priority than client service.

During these difficult times, companies can’t do enough to improve customer service and make sure they are serving, not only customer needs, but customer wants as well. The firms that are currently winning the race are doing just that. The successful firms are also meeting with current clients more frequently and staying in tune with client wants. The successful firms understand that in order to prevent the price shopping of accounting services, they need to be their clients’ trusted business advisor, not just another vendor.

PCPS has created a Client Service Resource Center to help its member firms refocus on client service. The Center has articles, tools and learning documents to help firms improve client service and teach everyone within the firm better client service strategies.

What is your organization doing to focus on customer retention? Post a comment.

– Mark Koziel