New Multi-state Survey Results Show Indiana CPAs
Expect Revenue Growth
Increased
Salaries and More Spending on Technology in 2012
The Business
Outlook Poll was conducted among CPAs in Indiana, Michigan, Ohio and
Pennsylvania.
Jan. 20, 2012
The results of
the multi-state Business Outlook Poll indicate that Indiana CPAs are
more optimistic about the economic growth for their industries and
organizations during the next six months than they are about the
nation’s or the state’s economy. More than 60 percent expect revenue
growth in their organizations over the next year, and many also
expect marginal increases in capital spending, wages and salaries,
and spending on information technology. Areas not expected to
increase include product development and advertising/marketing.
The survey also
brought to the forefront several business concerns Indiana CPAs
share with CPAs from the states of Michigan, Ohio and Pennsylvania.
Government regulation continues to be a top concern of businesses,
along with health care costs and uncertainty in the tax laws. Other
issues were the lending environment/sources of capital and slow pay,
or no pay, for services rendered with more that 80 percent and 75
percent, respectively, identifying them as problems that businesses
are facing.
The Indiana CPA
Society, Michigan Association of CPAs, Ohio Society of CPAs and
Pennsylvania Institute of CPAs all worked in conjunction with a team
from the University of Toledo Urban Affairs Center to design the
survey. The Business Outlook Poll respondents included partners or
sole owners of public accounting firms or serve as CEOs, CFOs, or
presidents of companies in various industries.
“Indiana CPAs
are respected business advisors and have a unique perspective on the
state’s business climate,” said Charles Johnson III, CPA, chair of
the Indiana CPA Society and managing principal for Engaging
Solutions, LLC in Indianapolis. “While this poll shows concern about
the national and state economy as well as specific areas like health
care and government regulation, CPAs are more optimistic about
growth opportunities for their own firms or businesses, and the
industries they serve. Predictions for revenue growth, increased
capital spending, and an investment in information technology are
signs that the economy is improving and headed in the right
direction.”
Jobs and
Spending – Cautious Optimism
Only 6 percent
of all multi-state CPAs who responded predicted robust growth in the
U.S., but the numbers climb as they evaluated state (9 percent),
industry (20 percent), and organization (26 percent) growth. The
CPAs surveyed did not report significant decreases in workforce or
revenues since the financial crises took hold, and say they expect
both areas to increase marginally in the next year. Indiana business
leaders expect marginal (52 percent) or substantial (7 percent)
revenue growth in the next year, with marginal (34 percent) and
substantial (2 percent) growth in employment. Less than five percent
of Indiana respondents predict a reduction in employment.
When discussing
their investment and spending outlook over the next year, more than
60 percent of the total respondents expect marginal to substantial
increases in information technology, with Indiana CPAs expecting the
highest increase at 63 percent. As for capital spending, only 40
percent of CPAs expect marginal to substantial increases. Product
development and advertising/marketing will remain relatively flat
with 65 percent in Indiana citing no change in
product development and 61 percent citing no change in
advertising/marketing spending.
Business
Concerns
CPAs and their
clients listed the ability to obtain funding as a significant area
of concern. About 76 percent of all respondents, 73 percent in
Indiana, do not think small businesses have access to adequate
credit to grow or sustain their businesses. According to 71 percent
of Indiana CPAs polled, the financial crisis and forecasts for slow
growth greatly reduce their ability or that of their clients to
obtain loans. CPAs from all four states cite health care costs as a
concern, with 98 percent of those surveyed responding affirmatively
when asked if the cost of health care benefits was a worry. Some
Indiana CPAs are looking into this area for savings, with 95 percent
agreeing that companies are reevaluating employee/benefit costs,
while 64 percent are aware of companies dropping or reducing
employee health insurance coverage.
The lending
environment and slow pay/no pay for services rendered also were seen
as problems for businesses in all four states. Two other areas of
concern for businesses in Indiana are finding and retaining
qualified employees and “brain drain.”
About Taxes
The majority of
all respondents, 73 percent, somewhat or strongly agree that the
current tax climate is a problem for businesses in their state. Only
16 percent of Indiana CPAs agree that changes in the tax climate
have helped the U.S. economic recovery. More than half of the
respondents (61 percent) agreed that companies are taking advantage
of available tax breaks, but fewer Indiana CPAs (35 percent) agree
that businesses are using current low-interest rates as an
opportunity to grow. Despite a general attitude that taxes and
regulatory costs are a hindrance to businesses overall, only six
percent of Indiana CPAs said those factors would cause them to move
their business/practice to another state.
About the Survey
Members of the four state CPA organizations were polled between Nov.
11 and Dec. 7, 2011. More than 2,100 CPAs responded, including 239
from Indiana. The survey focused on current economic conditions and
the effects it is having on businesses. The questions were selected
to quantify what CPAs are seeing in their day-to-day operations, as
well as to gather opinions on how best to improve economic
conditions in their respective states.
About INCPAS
Currently, more than 7,000 CPAs in public practice, industry,
government and education are members of the Indiana CPA Society.
INCPAS serves the public interest as well as its members. Its
members are required to abide by the CPA profession's code of
conduct. INCPAS members also receive access to quality educational
programs provided by the Society, resources that enable them to
better perform their job functions, and peer networking for
information sharing that broadens their skills and knowledge base.
Indiana CPA Society members are the most highly qualified and
competent CPAs in Indiana. Make sure your CPA is a member of the
Indiana CPA Society.
