Recession Strategies:
What Some Firms are Doing

Source: Accounting Office Management & Administration Report

AOMAR interviewed several consultants to the profession on how the recession is affecting CPA firms. The responses include:

• Local and regional firms may be winners because of “trickle down” work.
• Firms that see the recession as an opportunity will have the best chances of being winners when the recession ends.
• Twenty percent of firms have made significant layoffs. Forty percent are waiting until after busy season. Forty percent aren’t planning any layoffs.
• Mergers will accelerate. Values won’t be affected much unless the recession becomes much worse. • Pay for performance will be more prevalent.
• Some firms won’t give raises this year. Others will give two to four percent increases.
• One-third of firms project 10 percent to 15 percent growth in 2009, one-third expect three percent to five percent growth, and one-third expect to be flat or down.

Some actions that firms are taking include:

• Strict collections policies and monetary penalties for partners who don’t bill WIP timely.
• Closely tracking metrics.
• Considering furloughs during quieter months.
• Keeping staff informed about how the economy is affecting the firm.
• Hiring business developers and investing in sales training.

Some new approaches are needed, such as:

• Shifting from compliance to assistance in getting through these troubled times.
• Rebranding internal auditing skills as “lean and mean assessment” services, emphasizing fraud detection services, and offering performance measurement services.
• Demonstrating ways to save money on accounting services. This will build goodwill.
• Asking clients about critical business decisions they are facing. Show clients how you can help with this. Small business clients are likely to be suffering more in this economy because of limited credit availability. Consider how to help these clients, and offer ideas and options.

For the complete article and supporting tables, click here.

From Accounting Office Management & Administration Report, Institute of Management and Administration, Inc., Newark, NJ, [email protected], April 2009, p. 1, “Recession Report: What Should You Expect?”