NJ CPAs Find the Economic Glass ‘Half Full,’ According to Capital One Bank Survey

On Jul 27, 2015

A recent Capital One Bank and New Jersey Society of Certified Public Accountants (NJCPA) survey found that a strong majority of CPAs in the state (85 percent) expect their businesses to grow in the coming year. That’s the good news …

… And now for the bad news: 60 percent of those surveyed feel the New Jersey economy is performing as well or better than the national economy, and 40 percent feel the state’s economy is doing worse than the nation overall. Alarmingly, both of those numbers have shifted a significant 14 percent for the worse from last year’s numbers of 74 percent and 26 percent, respectively.

Capital One Bank and the NJCPA conducted the third annual survey during the NJCPA Annual Convention and Expo in Atlantic City in June.

Fifty-four percent of the CPAs surveyed expect their clients to pay more taxes in 2016 than they did in 2015, compared to 65 percent in last year’s survey. Despite this welcome drop, 25 percent of respondents said they expect New Jersey’s tax climate will have the largest impact on their own businesses over the next 12 months. Respondents also feel the Affordable Care Act (21 percent), federal tax policy (16 percent), and regulatory requirements (15 percent) will noticeably affect their businesses in the coming year.

“Here we are six years after the end of the Great Recession and we still can’t seem to get all of the key economic indicators to go in the right direction,” said NJCPA CEO & Executive Director Ralph Albert Thomas, CGMA. “It’s never been more important that New Jersey’s business groups work together with state legislators to promote a pro-growth strategy in the Garden State for the long term.”

Regarding the accounting profession, the survey found that its biggest challenges are a talent shortage (37 percent), followed by increasing fee pressure (20 percent), and IT security and regulatory requirements (18 percent each).

“Despite concerns about the strength of the New Jersey economy, it is promising to see that a majority of CPAs in the state expect their businesses to grow in the coming year,” said Bill Gascoigne, senior vice president, Capital One Bank. “Capital One Bank is committed to helping these professionals develop and grow

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