Pa. CPAs Not Impressed by Business Climate
PHILADELPHIA -- Most certified public accountants from Pennsylvania, New Jersey, and New York predict that business revenues will go up marginally in their states in the coming year. Pennsylvania CPAs, however, aren't so sure.
About half of respondents to a survey commissioned by the Pennsylvania Institute of Certified Public Accountants, the New Jersey Society of Certified Public Accountants and the New York State Society of Certified Public Accountants do not believe job growth or salaries will change (55% and 47%, respectively). When evaluating overall U.S. economic conditions, most CPAs agree that the economy is about the same this year as last and will remain about the same in 2014. High unemployment (19%), the Affordable Care Act (17%), and entitlement spending (14%) were identified as the top three hindrances to economic growth, according to the survey.
“CPAs have unique insight into the business environment through their work in public accounting serving multiple clients and in industry where they work with other C-suite executives,” said Michael D. Colgan, Pennsylvania Institute CEO and executive director, in a prepared statement. “These survey results should translate into continued growth across multiple sectors of the economy.”
The CPA outlook on the business climate in Pennsylvania, however, was not so rosy. Only 1% of PICPA members surveyed rated the business climate as excellent. The majority, 59%, rated it as only fair and 53% believe the state’s business climate hinders economic growth.
Reforming state and local government pensions and benefits topped the list of recommendations for greater economic expansion and job growth. Second was an increased investment in repairs and upgrades to infrastructure, such as roads and transportation systems. The Institute's Fiscal Responsibility Task Force reports highlighted the state’s ongoing pension reform and infrastructure funding problems in both its 2011 and 2013 reports to the Legislature. It included a number of policy options contained in House Bill 1060, a measure funding transportation initiatives, which was approved in mid-November.
The Pennsylvania Institute of Certified Public Accountants is a statewide association with more than 20,000 members who work in public accounting, industry, government, and education.
Published by The Business Journal, Youngstown, Ohio.
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