Executive bullishness about their businesses rebounds from Q2: AICPA
However, the optimism surge doesn’t extend beyond their doors.
The bullishness by executives about the outlook for their businesses has rebounded from the second quarter, the Association of International Certified Public Accountants (AICPA) reports.
The level of optimism climbed to 41 percent in the third quarter from 30 percent in the second. CFOs comprised 45% of the respondents, 22% were controllers, 16% were presidents, CEOs, or other C-suite titles; 6% were VP/SVPs, 11% were accounting, audit, tax, technology directors or managers; the remainder were other executives.
There was a steeper increase in the number planning to expand their businesses: 43 percent from 24 percent with 13 percent planning to hire in the near future, almost double the 7 percent in the previous quarter.
In another indication of the optimism, the number of CPA execs who claimed their firms were overstaffed dropped to 16 percent from 25 percent.
However, the optimism surge doesn’t extend beyond their doors: fewer than one out of five remain pessimistic about the U.S. economy as a whole.
Concern about deflation saw a significant drop to 11 percent from 18 percent while inflation worriers remained flat at 20 percent.
Food inflation as a concern is now in the single digits at 5 percent from Q2’s 12 percent.
AICPA gave these figures on hiring outlooks for CPA firms by size:
—Of employers with annual revenues under $10 million, 58 percent said they have the right number of employees,
14 percent have excess and of the 25 percent attesting to too few workers, 11 percent are planning to hire while 14 percent are hesitant.
—For employers with over $1 billion in yearly revenues, 20 percent said they have excess employees and 34 percent with too few. Of those with too few employees, only 15 percent are planning to hire, and 19 percent remain hesitant.
—Of those in the $100 million to $1 billion category, 29 percent say they have too few employees; 11 percent are hiring, while 18 percent are hesitant.
—In the $10 – $100 million range, 26 percent said they now have too few employees. Of those with too few, 12 percent have plans to hire and 14 percent are hesitant.
The survey was conducted of AICPA Business & Industry members between July 28 and August 18, 2020 and had 1067 qualified respondents.
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