A recent Capital One Bank and New Jersey Society of Certified Public Accountants (NJSCPA) survey found that most CPAs in the state expect their business to grow in the coming year and have a positive view of New Jersey’s economic performance. A majority also anticipate that their clients will pay more taxes in 2015 than they did in 2014.
Capital One Bank and the NJSCPA conducted the second annual survey during the NJSCPA Annual Convention and Expo in Atlantic City, New Jersey, in June.
Seventy-four percent of those surveyed feel the New Jersey economy is performing as well or better than the national economy, and 26 percent feel the state’s economy is doing worse than the nation overall.
Sixty-five percent of the CPAs surveyed expect their clients to pay more taxes in 2015 than they did in 2014, compared to 79 percent in last year’s survey. Only 2 percent expect their clients to pay less in taxes. Additionally, 45 percent of respondents said they expect increased taxation will have the largest impact on their own businesses over the next 12 months, a finding nearly unchanged from last year’s 46 percent. Respondents also expect health care reform, rising interest rates and limited access to credit to affect their business in the coming year.
Despite tax rate concerns, 73 percent of the CPAs surveyed expect their businesses to grow during the next year. This result is slightly less optimistic than 2013, when 87 percent anticipated growth in the year ahead. However, 60 percent feel their firm’s financial performance is better today compared to one year ago, slightly better than last year’s 56 percent figure.
“It’s encouraging that New Jersey CPAs anticipate their business will continue on an upward trajectory, despite expectations of increased tax burdens,” said Bill Gascoigne, Senior Vice President, Capital One Bank. “Capital One Bank’s team of experts is dedicated to helping these professionals find solutions for their day to day needs while navigating the business environment to successfully grow.”
“Changing demographics and ever-increasing regulations are just a pair of key challenges that businesses are facing now and in the foreseeable future,” says NJSCPA CEO & Executive Director Ralph Albert Thomas. “So it becomes even more imperative for them to turn to their CPA to help them navigate the turbulent business and financial landscape.”
Thirty-two percent of survey respondents said the biggest challenge facing the accounting industry this year is the number of standards, such as GAS, GAGAS, U.S. GAAP, followed by a skills shortage (29 percent) and new rules and regulations (29 percent).Related Articles: