Recession keeps accountants busy

Wednesday, 8 July 2009 2 Comments

While many industries are finding it tough going during this economic recession, accountants report they are very busy with lots of cash flow forecasting and advisory work for clients needing to adjust to a tougher business environment.

BNZ chief economist Tony Alexander says this "minor pullback is consistent with our interpretation of recent results being a 'sigh of relief' at the avoidance of an especially deep recession scenario."

The following are comments, from accountants, published in the survey.

• In accounting and at the moment it's debtors - they're getting longer like the days are now - must think we're friendly bankers.
• Chartered Accountancy and Business Growth Advice: Clients in general are becoming more positive about their business prospects.. Many clients still looking at cost cutting and therefore more fee sensitive than 12 months ago.
• Increasing workload. This is common in the accountancy field when times are tough. Clients become aware of reduced incomes and look for assistance with reducing costs In Financial Services Auckland...having a year of record sales/growth, but needing to help many clients who are struggling to cope with cash outflows. Business clients are reporting that many customers are not paying them and they are needing to chase payments...business mentors can help with this common problem in recession times.
• Chartered Accounting- very busy, most clients running a more ship shape business.
• Accountancy - still shortage of skilled staff, very busy with forecasting and periodic reporting.
• Accounting - compliance up, delayed payments up
• Taxation Consultancy - a slight increase in transactional work; expecting to see an increase in bargain hunters.
• Chartered Accountant - Have never had such a backlog of work. Looking at six months worth of client files waiting to get started! Issue will be whether the clients have sufficient cash flow to pay when the work is done. Clients in the building and associated sectors/transport industry under extreme cash flow pressure.
• Chartered Accountant - many tracking as they have for last ten months - some dairy clients under real stress especially recent conversions
• Chartered Accountant - we are busier than ever.
• Accountancy - I noticed things had been more difficult for many people when preparing the last round of GST returns. Also one or two saying please don't prepare my accounts yet I simply can't afford to pay you. Still more new clients coming on board with me though.
• Accounting - strong demand for services from those who have well positioned themselves in advance. Lots of change means opportunity for work.
• Mid-sized Accountants and business advisers - Majority of business with lower profitability and voluntary liquidations increasing. However top 20% of clients showing increased returns with many opportunities in their respective markets. Our debtors ledger is still turning over. Year to date suggest a record year.

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