CPA Firms Weathering the Storm

Source: CPA Trendlines

Following are excerpts from an October 21, 2009, blog post by Rick Telberg.

Accounting firms are doing well weathering the effects of the current economic slump, but unfortunately there may still be challenges ahead, even as the economy picks up, according to a survey by CCH.

Despite the downturn, firms have been successful overall in maintaining rates, client services, and staff productivity as they carefully manage the bottom line. But even during the recession, firms reported difficulty in finding good staff. And, with the Baby Boomers about to retire in record numbers, a talent crunch looms on the horizon as the economy recovers.

The good news is that job reductions in accounting firms have been relatively low. Twelve percent of firms surveyed had layoffs, while 18 percent instituted hiring freezes. However, firms highlighted difficulty in finding good staff even in the recession, with 20 percent reporting that they are unable to find people to fill open positions despite record-high unemployment rates.

Fifty-six percent said they plan to ramp up hiring as the economy improves. Qualified staff already is in short supply, however, at the same time older workers are heading toward retirement — and they don't seem to be looking back. According to the survey, only four percent of firms have seen staff delay retirement because of the economy. Yet, 26 percent hope to retain or hire older employees as the economy improves as a strategy to fill positions with qualified staff.

To read the entire post, click here.

From CPA Trendlines, http://cpatrendlines.com, October 21, 2009, “CCH: Accounting Firms Doing Well Through Economic Slump.”