CPAs in New Jersey expect their business to grow in the year ahead and have a positive view of New Jersey’s economic performance, but a majority also expect their clients will pay more taxes in 2015 than in 2014, according to a new survey.
The survey, conducted last month by the New Jersey Society of CPAs and Capitol One Bank at the NJSCPA Annual Convention & Expo in Atlantic City found that 74 percent of those surveyed feel the New Jersey economy is performing as well or better than the national economy, while 26 percent believe the state’s economy is doing worse than the nation overall.
Sixty-five percent of the CPAs polled expect their clients to pay more taxes next year than this year, compared to 79 percent in last year’s survey. Only 2 percent anticipate their clients will pay less money in taxes in 2015. In addition, 45 percent of respondents indicated they expect increased taxation will have the biggest impact on their own businesses over the next 12 months, a finding nearly unchanged from last year’s 46 percent. Respondents also expect health care reform, rising interest rates and limited access to credit to affect their business in the coming year.
Despite tax concerns, 73 percent of the CPAs surveyed expect their businesses to grow next year. This result is slightly less optimistic than 2013, when 87 percent anticipated growth in the year ahead. However, 60 percent of the poll respondents feel their firm’s financial performance is better today compared to one year ago, slightly better than last year’s 56 percent figure.
“It’s encouraging that New Jersey CPAs anticipate their business will continue on an upward trajectory, despite expectations of increased tax burdens,” said Capital One Bank senior vice president Bill Gascoigne in a statement.
Thirty-two percent of the survey respondents said the biggest challenge facing the accounting industry this year is the number of standards, such as U.S. GAAP, Government Auditing Standards and Generally Accepted Government Auditing Standards, followed by a skills shortage (29 percent) and new rules and regulations (29 percent).
“Changing demographics and ever-increasing regulations are just a pair of key challenges that businesses are facing now and in the foreseeable future,” said NJSCPA CEO and executive director Ralph Albert Thomas in a statement. “So it becomes even more imperative for them to turn to their CPA to help them navigate the turbulent business and financial landscape.”