Inflation and availability of talent are top business concerns
June 6, 2022
About 65% of 441 CPA surveyed by the New Jersey Institute of Certified Public Accountants (NJCPA) in May expect New Jersey’s economy to deteriorate in the second half. An even larger proportion (68%) of respondents believed that the US economy would deteriorate later in the year.
Inflation (73%) was the top challenge for respondents’ businesses. An additional challenge cited was availability of skilled talent (57%). Unfavorable state and fiscal policies for businesses (42%). supply chain issues (35%); and regulatory requirements (27%).
Of the approximately 240 respondents who work in public accounting, the majority (69%) said they would advise private clients to consider moving out of state because of the high cost of living in New Jersey. Yes, and 54% said they have advised business clients to move from New Jersey. Consider moving. Those who commented pointed out that taxes combined with the rising cost of living were a factor. “About 20 years ago, I got her CPA license in Florida for immigration heading south. It put my clients at ease knowing I had it,” said one respondent. Added.
Over the next 12 months, a majority of respondents said the most helpful government action for businesses was to fight inflation (74%). Less onerous regulations (65%). Low corporate tax rate (51%). One respondent said: Otherwise, you’ll be reverting to years of stagflation. ”
Compared to last year’s current survey of economic outlook, this year’s respondents were clearly negative. Last year, more than 40% of his respondents said they thought the U.S. economy would improve, and 35% thought New Jersey’s economy would improve. This year, those numbers were just 9% and 7% respectively.
More than 40% of respondents think New Jersey’s fiscal health is fair, and 39% think it’s bad.
“CPA works tirelessly to serve businesses and individuals across the state. It’s an important indicator that shows,” said Ralph Albert Thomas, Certified Public Accountant (DC), CGMA, CEO and Executive Director, NJCPA.
The survey was sponsored by Investors Bank, a division of Citizens Bank, NA, and was conducted to gauge the CPA’s outlook for the national and New Jersey economy.
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