A survey finds 61% of accountants believe the economy will be “much” or “somewhat worse” for small business clients over the next year.
Small businesses in the US are facing significant challenges as the economy continues to struggle. According to a recent survey by tax compliance automation provider Avalara, in partnership with accounting news and analysis website CPA Trend lines. 61% of accountants believe the economy will be “much” or “somewhat worse” for small business clients over the next year.
Conducted in March and April, the survey included 536 accountants representing over 100,000 small businesses. Unfortunately, small businesses are currently struggling with several challenges, such as limited access to capital, supply chain issues, and rising payroll costs. As a result, businesses are finding it difficult to hire new employees and increase their profits.
In a recent survey, 39% of accountants reported progress in small business clients’ performance in 2023 compared to 2022. While 45% reported that the situation was “about the same,” the outlook for the next 12to18 months is less positive. When asked how the economy would affect their small business clients over the next 12 to 18 months, nearly 61% said “much” or “somewhat worse,” with less than 1% expecting anything “better.” 70% percent of accounting professionals predict the economy will worsen in the next 12–18 months.
The survey studied how economic conditions would affect small businesses’ access to capital, profits, payroll management, and hiring. Most accountants believe that their clients’ ability to manage key areas will worsen in the next 12–18 months.
70% percent of accountants believe their small business clients can effectively adopt new technology and automation. The respondents reported “about the same,” “much,” or “somewhat better.”
To help small businesses navigate through the current economic challenges, seeking hands-on business advice from accountants is crucial. Additionally, accountants can offer valuable guidance on staffing, managing inflation costs, and taking lines of credit. Small businesses in the US are facing various challenges, such as limited access to capital in the supply chain. In these uncertain times, they must rely more on their trusted advisors for guidance and support. Accountants must prioritize building stronger client relationships and leveraging available resources to support their clients.
Fortunately, there are resources available to help you find the right tax professional for your needs. Utilizing marketplaces like IfindTaxPro, where you can post your project and find the right tax specialist for your unique situation. With a platform like IfindTaxPro, you can be assured that you will find a qualified professional who can spot opportunities and risks that you may not be aware of.
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