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Accountants’ top concerns in the 2024 election year

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Accountants are fairly evenly divided on the upcoming U.S. presidential election, but they share common ground on the issues that pose the most significant threats to their firms and the profession.

A new survey conducted by Arizent, the parent company of Accounting Today, reveals that accountants consider the economy (51%), the national debt (46%) and tax reform (42%) the most urgent concerns in relation to their firms’ business for the next presidential administration and Congress to address. The 2024 survey collected responses from over 1,200 U.S. business leaders and professionals across accounting firms, banks, payments firms, mortgage lenders, insurance agents, wealth management firms and others.

High interest rates, rising inflation and an economy teetering on the edge of a recession are a top concern for firms of all sizes. Respondents mentioned clients under financial strain and challenges managing cash flow as issues related to the current economy.

“The single most important issue is instability and high inflation that is putting down pressure on the prices that I can charge my clients for services,” an executive at a Western midsized firm responded. “With lower prices, I am limited in the ability to improve the level of services and develop my business.” 

A manager at a small firm in the South responded, “The current economy has caused us to lose some clients because they can no longer afford us. They are not bringing in the same income they were the past few years.”

A staff member at another small firm in the South said, “Our costs have gone up significantly in the past three years, and we have had to pass those costs on to our clients who are getting hit with rising costs from all sides. No one is thriving in this current climate and economy.”

The national debt is another top concern hand-in-hand with worries over the economy. Accountants may be worried about increased government spending, including the additional $80 billion in IRS funding, billions of dollars in student loan forgiveness under the Biden administration, and aid to foreign conflicts like the wars in Ukraine and Israel.

(Dive into the numbers behind accountants’ thoughts about the election.)

Unsurprisingly, tax reform is also top of mind for accountants who already struggle to keep up with the grueling hours of tax season amid the ongoing labor shortage. Accountants say continual changes in the Tax Code make it difficult for them to do their jobs.

“As a CPA who prepares lots of tax returns, the constant changing of the Tax Code and the sunsetting of tax laws that have to be renewed every year and sometimes are not done early enough,” an executive at a small firm in the Northeast responded. “If they are going to make these changes year after year, make them permanent so tax planning can be done more effectively and efficiently.”

Another executive at a small firm in the Midwest said, “Far too many temporary tax laws make it difficult for long-term planning. Retroactive tax changes make it even more difficult for the profession.”

Casting their votes

As for the general election, accountants’ votes will be fairly evenly split between the two major parties. Thirty-five percent say they intend to vote Democrat and 33% intend to vote Republican. Meanwhile, 15% say they are undecided, and the remaining 17% responded as “Other.”

More firms (42%) say a Republican president would be the best outcome for their firm and the profession, compared to 34% who say a Democratic candidate would be best and 18% who say either party would make no difference. Similarly, more firms say a Republican-controlled Senate and House of Representatives would be better than if they were controlled by Democrats.

The common thread between respondents is the level of dissatisfaction with the current political climate. Seventy-one percent report being “very dissatisfied,” 18% “somewhat dissatisfied,” and only 10% “somewhat or very satisfied.”

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Accounting

On the move: KPMG adds three asset management, PE leaders

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Wipfli appoints new chief growth officer; Illinois CPA Society installs latest board of directors; and more news from across the profession.

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Accounting

Employers added 228K jobs in March, but lost 700 in accounting

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Employment rose by a stronger than expected 228,000 jobs in March, although the unemployment rate inched up one-tenth of a point to 4.2%, the U.S. Bureau of Labor Statistics reported Friday.

Despite the mostly upbeat jobs report, the stock markets nevertheless plunged amid widespread concern over the steep “reciprocal” tariffs announced Wednesday by President Trump. 

The professional and business services sector added 3,000 jobs, but lost 700 jobs in accounting, tax preparation, payroll and bookkeeping services. The biggest job gains occurred in health care, social assistance, transportation and warehousing. Employment also grew in the retail trade industry, in part due to the return of workers from a strike in the food and beverage industry. But federal government employment declined by 4,000 in March, after a loss of 10,000 in February, amid job cuts ordered by the Elon Musk-led Department of Government Efficiency. However, the Internal Revenue Service is reinstating approximately 7,000 probationary employees who had been placed on paid administrative leave and asking them to return to work by April 14.

Average hourly earnings rose in March by 9 cents, or 0.3%, to $36.00. Over the past 12 months, average hourly earnings have increased 3.8%.

Trump boasted about the jobs report in an all-caps post on Truth Social, writing, “GREAT JOB NUMBERS, FAR BETTER THAN EXPECTED. IT’S ALREADY WORKING. HANG TOUGH, WE CAN’T LOSE!!!”

Congressional Democrats disagreed. “Unemployment is rising, and this seems to be the last report buoyed by Democrats’ blockbuster job creation,” said House Ways and Means Committee ranking member Richard Neal, D-Massachusetts, in a statement. “Recession odds are getting higher by the day as Trump plagues our economy with the largest tax hike in decades. Wages would need to skyrocket for the people to weather Trump’s higher prices and needless uncertainty. This report doesn’t yet reflect the dangerous firings of thousands of public servants or the layoffs that started hours after he announced the Trump Tariff Tax. This administration is ruling through the lens of billionaires — sacrificing workers’ paychecks, destroying trillions of dollars in savings and retirement wealth, readying more than $7 trillion in tax giveaways to primarily benefit the rich, all to bring down interest rates, and ultimately, pad their own pockets.”

Economists are predicting fallout from the historic tariff increases announced by Trump. “We now have more clarity on the trade policy following ‘Liberation Day’ on April 2,” wrote Appcast chief economist Andrew Flowers. “The average effective tariff rate is now above the level set by the Smoot-Hawley tariffs in 1930. This is one of the largest changes to economic and global trade policy since President Nixon’s decision to move away from the gold standard more than 50 years ago. The impending fallout from retaliatory tariffs from our trading partners across Europe and Asia will radically shift employment growth across manufacturing, retail and construction as consumer goods prices rise.”

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Accounting

Tech news: AvidXchange releases new AI agents

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Plus, Solver Releases xFP&A Nonprofit Industry Solution Models; CPAClub launches “Club 22” professional network; and other accounting tech news.

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