Accountants Hot Commodities in Slowing Economy
Job seekers face one of the most challenging job markets in more than a decade. The Labor Department recently reported that 533,000 jobs were lost in last month, pushing the total number of layoffs up to nearly 2 million through November. But it’s not all gloom and doom. The accounting industry is bucking the trend. Accounting firms are not only gearing up for tax season, but companies attempting to cut costs and struggle through the recession are realizing the importance of good financial controls which requires the expertise of accountants. Moreover, with financial firms anticipating more regulation and facing increased scrutiny, auditors will be hot commodities.
Accounting firms are in growing demand to assist companies navigating the challenges and opportunities that the current financial environment creates. Accounting and finance executives also continue to be confronted by the increasing complexities of changing tax laws and regulations, including the push for International Financial Reporting Standards (IFRS). Amid the trend, hiring qualified professionals remains the most critical concern for U.S. firms, according to the AICPA. Executive search firm, A. E. Feldman, reports that firms are showing strong interest in professionals who can help their companies reduce inefficiencies and enhance profitability. Those who are familiar with IFRS also are marketable. The positions most in demand include staff and senior accountants and credit and collections specialists. Current opportunities include, tax manager jobs, audit jobs, international tax jobs, and business valuation jobs.
Accountants to Help Companies Survive Recession
CPA firms are being called upon to help clients weather the slowing economy. Meanwhile, banks are looking to accounting professionals for greater assurance about the companies with which they do business. Accountants can assist companies during recession in a number of ways, including budgeting, cash flow management, tax planning as well as debt consolidation and restructuring.
Amid the trend, accounting firm WithumSmith+Brown announced it has introduced a new consulting service to help businesses deal with the troubled economy. The firm says its Project Forward team is comprised of the firm’s top industry experts who will provide independent counsel to enable leaders of middle-market companies to navigate through difficult times. The group also includes professionals from different disciplines within the firm, including business process improvement experts. The team is lead by Tom Basilo, a CPA and CEO of WS+B’s global assurance division.
WS+B says the Project Forward initiative will use a proprietary methodology called the Business Strength Analyzer that assesses a company’s strengths as well as new opportunities for improving profitability, productivity and cash flow.
“A lot of the CFOs are baffled because a lot of the old techniques that have been successful for years and years just are not working,” said Basilo. “My feeling was that they needed someone to be a sounding board to help them come to some solutions, maybe through some brainstorming discussions.”
The firm will also help business leaders prepare themselves to seek out sources of credit and financing. “Only the best companies will be given credit,” said Basilo. “They need to be a lot more prepared than before and have an understanding of banks.”
J.H. Cohn LLP, one of the top 15 accounting and consulting firms in the U.S., also recently announced the formation of the Client Economic Recovery Team (CERT) - a new multidisciplinary group of experts assembled to support, advise, and assist financial institutions and public corporations affected by the rapidly evolving financial environment.
J.H. Cohn says CERT will assist senior executives and Board members in addressing the risk management and regulatory compliance requirements of the Troubled Assets Relief Program (TARP). “We expect the changing regulatory environment to create both opportunities and challenges for businesses in many sectors of the economy,” stated Thomas J. Marino, J.H. Cohn’s Chief Executive Officer.
Accounting Firms Still Thriving
CPA firms are thriving, despite the economic downturn. A large majority of CPA firms reported two years of continuing strong growth, according to the 2008 National Management of Accounting Practice survey by the American Institute of Certified Public Accountants (AICPA) and the Texas Society of Certified Public Accountants. The survey, which was released on November 17th, finds the vast majority (75%) of the 2,722 CPA firms surveyed report growth of up to 19% over the past two years - a significant 40% increase from the previous 2006 survey.
That said, many accounting firms continue to hire. Long Island Business News quotes Steve Wolpow, Co-Managing Partner at accounting firm Nussbaum Yates Berg Klein & Wolpow, as saying his firm has been expanding. Financial concerns, he said, lead to greater need for financial advice. “We’re in a growth mode. We’re in an acquisition-minded mode,” Wolpow said. “There’s a lot of retrenchment. People are worried and nervous. With that comes opportunity.”
Wolpow isn’t alone in seeing strong demand. LIBN also quotes Mark Meinberg, Managing Partner at Feldman, Meinberg & Co. as saying his firm hired three more professionals since the down economy has lead to demand for different services. “You have to be sensitive to what’s going on in the economy,” Meinberg said. “We’re growing because our clients greatly need us.”
Meinberg adds that turnarounds, bankruptcies and assorted special projects are likely to crop up in a difficult economy, according to LIBN. “A client with a good business who all of a sudden is impacted by a slowdown needs his accountant to help understand how to get through these tough times,” he said.
Are you working in accounting? If you want to grow your career or discuss your company’s talent needs, contact A.E. Feldman’s President, Mitch Feldman, now. Find out more about accounting jobs today!
