Accountants are fairly evenly divided on the upcoming U.S. presidential election, but they share common ground on the issues that pose the most significant threats to their firms and the profession.
A new survey conducted by Accounting Today, reveals that accountants consider the economy (51%), the national debt (46%) and tax reform (42%) the most urgent concerns in relation to their firms' business for the next presidential administration and Congress to address. The 2024 survey collected responses from over 1,200 U.S. business leaders and professionals across accounting firms, banks, payments firms, mortgage lenders, insurance agents, wealth management firms and others.
High interest rates, rising inflation and an economy teetering on the edge of a recession are a top concern for firms of all sizes. Respondents mentioned clients under financial strain and challenges managing cash flow as issues related to the current economy.
"The single most important issue is instability and high inflation that is putting down pressure on the prices that I can charge my clients for services," an executive at a Western midsized firm responded. "With lower prices, I am limited in the ability to improve the level of services and develop my business."
A manager at a small firm in the South responded, "The current economy has caused us to lose some clients because they can no longer afford us. They are not bringing in the same income they were the past few years."
A staff member at another small firm in the South said, "Our costs have gone up significantly in the past three years, and we have had to pass those costs on to our clients who are getting hit with rising costs from all sides. No one is thriving in this current climate and economy."
The national debt is another top concern hand-in-hand with worries over the economy. Accountants may be worried about increased government spending, including the additional
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Unsurprisingly, tax reform is also top of mind for accountants who already struggle to keep up with the grueling hours of tax season amid the ongoing labor shortage. Accountants say continual changes in the Tax Code make it difficult for them to do their jobs.
"As a CPA who prepares lots of tax returns, the constant changing of the Tax Code and the sunsetting of tax laws that have to be renewed every year and sometimes are not done early enough," an executive at a small firm in the Northeast responded. "If they are going to make these changes year after year, make them permanent so tax planning can be done more effectively and efficiently."
Another executive at a small firm in the Midwest said, "Far too many temporary tax laws make it difficult for long-term planning. Retroactive tax changes make it even more difficult for the profession."
Casting their votes
As for the general election, accountants' votes will be fairly evenly split between the two major parties. Thirty-five percent say they intend to vote Democrat and 33% intend to vote Republican. Meanwhile, 15% say they are undecided, and the remaining 17% responded as "Other."
More firms (42%) say a Republican president would be the best outcome for their firm and the profession, compared to 34% who say a Democratic candidate would be best and 18% who say either party would make no difference. Similarly, more firms say a Republican-controlled Senate and House of Representatives would be better than if they were controlled by Democrats.
The common thread between respondents is the level of dissatisfaction with the current political climate. Seventy-one percent report being "very dissatisfied," 18% "somewhat dissatisfied," and only 10% "somewhat or very satisfied."
