FIRMS SEE YEAR-END RECOVERY
New York-A new survey of small and midsized CPA firms indicates that they see signs of economic recovery coming by the end of the year.
Forty-seven percent of the 1,012 small and midsized firms polled by the American Institute of CPAs believe that the economy will begin to recover in the fourth quarter, while another 10 percent believe that the economy is already improving.
The firms surveyed reported that the biggest issues confronting them as a result of the economic crisis are strains on accounts receivable and revenue reductions because of client attrition and fee pressure.
Approximately a fifth of firms of all sizes said that the current economic situation has had no impact on their business. More than 10 percent of CPA firms with 10 or fewer professionals are actually seeing additional client opportunities because of the recession.
CPA employment is expected to remain steady. Eighty-three percent of the sole practitioners polled, 75 percent of the firms with two to five professionals, 56 percent of the firms with six to 10 professionals, and 49 percent of the firms ranging from 11 to 20 professionals said that they expect no increase or decrease in staffing.
COS. SEE EARLY '10 REBOUND
Manufacturing and wholesale distribution companies surveyed by accounting provider RSM McGladrey expect to rebound from the recession beginning in late 2009 and early 2010.
However, the survey reflected a significant decline in the companies' fortunes in the past year. Forty percent of the 920 companies surveyed reported their business as declining this year, compared to 12 percent in 2008.
The survey found that 26 percent of the companies plan to reduce capacity this year and 25 percent intend to consolidate operations, while only 15 percent plan to expand capacity.
Companies with global business activities are expected to fare better this year than companies focused only on domestic sales.
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