New Survey Finds Accounting Industry Growth, Higher Taxes for Clients and Challenging Economic Conditions in NJ

On Aug 4, 2016

New Jersey CPAs believe their clients will pay more taxes in 2017 than they did this year and also expressed concerns about a slowdown in the state’s economy. In a recent survey conducted of New Jersey-based CPAs by Capital One Bank and the New Jersey Society of CPAs (NJCPA), 43 percent of respondents said they expect their clients will pay more in taxes this year, with just four percent believing they will pay less. In addition, 40 percent of respondents believe the New Jersey economy is lagging behind the national economy, compared to just 10 percent who see New Jersey as outperforming the nation overall.

Despite their perceptions of the challenging economic conditions in the state, many of those surveyed shared a positive view of the accounting industry’s prospects. Fifty-five percent of New Jersey CPAs reported that their company’s financial performance has improved from last year, and more than 80 percent anticipate that their business will grow in the upcoming year. In fact, the challenge of hiring talented and skilled accountants was the most commonly expressed concern, by more than half of those surveyed.

“CPAs are a valuable asset in any environment, but their advice and counsel can be even more important as potential economic challenges emerge,” said Bill Gascoigne, Senior Vice President in the Professional Services Group at Capital One. “CPAs are familiar with the issues that arise as market environments evolve, and I know that our clients remain focused on improving their businesses and delivering the highest level of service.”

“It’s encouraging that New Jersey CPAs anticipate their businesses will continue to prosper,” said NJCPA CEO & Executive Director Ralph Albert Thomas, CGMA. “But a lot of work still needs to be done to make New Jersey’s economic environment more attractive and keep businesses and retirees in the state.”

The CPAs surveyed also weighed in on the top issue that could most impact their businesses in 2017. Twenty-five percent were most concerned about regulatory requirements, while 22 percent said the New Jersey tax climate would have the greatest impact and 18 percent felt complying with the Patient Protection and Affordable Care Act would be most significant.

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