the avalara accountants confidence report points to difficulties.
via avalara
nearly 50 percent of accountants surveyed believe the outlook for over 80,000 small business clients they represent will turn sour over the next 1
2 to 18 months, according to a new 卡塔尔世界杯常规比赛时间 study conducted with avalara, the sales tax automation provider.
full report: download (pdf)
fielded during the 2024 tax season, the survey shows accounting professionals flashing warning signs around key business issues, leading with clients’ abilities to hire and retain employees, manage costs and price increases, and keep up with technology changes ushered in by artificial intelligence.
the 2024 avalara accountants confidence report, produced in conjunction with 卡塔尔世界杯常规比赛时间, results from a survey of trusted advisors with the clearest view into the financial health of small business clients. the survey was conducted against a backdrop of continued high inflation, heightened interest rates, a looming recession, tightening credit, and pressure to focus on short-term challenges at the expense of long-range planning.
accountants to small biz clients: cut costs, apply new financial discipline
according to the report, main street accountants provide cautionary advice to small businesses amidst uncertain or deteriorating business and economic conditions. fully 48.6 percent of the 347 accountants surveyed believe the outlook for the 86,999 small business clients they represent will turn sour over the next 12 to 18 months, with only 17.7 percent expecting change for the better and 33.6% predicting no change.
the survey of working tax, accounting and finance practitioners—including cpas, bookkeepers, wealth managers, payroll agencies, and tax professionals—also shows that 49.7% are forecasting a downturn in the u.s. economy as a whole, with only 16.8% predicting improvement and 33.6% seeing no change.
main street accountants are bullish only on professional services and “small tech”
the survey demonstrated that the dynamics of the economy are already throwing the spotlight on some winners and losers. accountants see some of the best prospects in the economy ahead for professional services firms, such as law firms and medical practices, and for the local it service providers and small tech manufacturers and distributors that other small businesses will need to rely on as they retool for the next phases in the economy and in technology. at the other end of the spectrum, they are not optimistic about auto dealerships, franchising, retail trade, the arts and entertainment industries, and a laundry list of additional business types.
bearish extended outlook on the overall economy
accountants offered a broad range of advice to small business owners, urging clients to cut costs where possible, apply new financial discipline in running their company, embrace technology and adjust workplace policies to find and keep the best employees. the survey was conducted during an election year, adding another element of uncertainty in tax policy and planning and government regulatory activities. in written comments, survey respondents advised their clients on a range of areas, from cost management to financial discipline and reporting, client and customer relations, tax and regulatory awareness, staff management, and technology and ai utilization:
- “stay current on employment laws”
- “get your house to prepare for more irs audits”
- “keep your employees happy, or you won’t have a business to run”
- “manage expenses and make yourself unique”
- “expect big business to be your long-term competition”
- “raise your prices! if you’re needed, they will pay you”
- “take advantage of ai to increase productivity and save time”
- “look for different methods to accomplish goals and leverage technology to be more productive”
“main street accountants have perhaps the most accurate view into the health of small businesses in local economies, so our 2024 accountants confidence report provides a unique aggregate snapshot of how businesses are faring, now and into the near future,” says sona akmakjian, global head of strategic accounting partnerships at avalara. “this new data around accountant sentiment also demonstrates the extent to which mom-and-pop shops depend on the business acumen and advisory of their trusted accounting professional, who must now wear many hats to help clients through headwinds including ongoing staffing shortages, continued inflation, and better understanding technology, including ai, to deal with current and forthcoming challenges.”
about the study
the online survey was fielded at the height of tax season in march and april 2024 by 卡塔尔世界杯常规比赛时间 research to the 卡塔尔世界杯常规比赛时间 proprietary database of readers, followers, and subscribers in practicing tax, accounting and finance professional services firms, including cpas, bookkeepers, tax professionals, and business advisors. sent directly by email invitation and via social channels comprising more than 155,000 followers, respondents were incentivized by offering a “top-line executive summary of results.” the study has a margin of error of 3-5 points at a 90% confidence level. 卡塔尔世界杯常规比赛时间 research (www.g005e.com) is an independent information service and think tank focusing exclusively on delivering actionable intelligence to the professional tax, accounting and finance community and the vendors and suppliers who serve them.
about avalara
avalara makes tax compliance faster, easier, more accurate, and more reliable for 41,000+ business and government customers in over 75 countries. its tax compliance automation software solutions leverage 1,200+ signed partner integrations across leading e-commerce, erp, and other billing systems to power tax calculations, document management, tax return filing, and tax content access. visit avalara.com to improve your compliance journey.
about 卡塔尔世界杯常规比赛时间 research
卡塔尔世界杯常规比赛时间 delivers data-driven, actionable business intelligence to professional tax, accounting, and finance professionals to help build their firms, to enhance their careers, and to better serve their clients.