clients will need your help sorting through it all.
by 卡塔尔世界杯常规比赛时间 research
back in the good ol’ days of december and january, 55 percent of accountants and tax practitioners were identifying technology as the most important issue for business over the next 12-18 months.
tariffs weren’t even on the radar, and inflation ranked third.
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three months later, and so much has changed. the april results of the 卡塔尔世界杯常规比赛时间 busy season barometer show tariffs and inflation tying at the top of nine issues at 66 percent. technology has dropped to fifth.
fears of the future
the new tariff policies, and their inconsistency, have certainly thrown stock and treasury bond markets into a vertiginous tizzy. but concerns on main street markets are still just fears of the future, aka the unknown.
concerns with inflation, costs and pricing have also leaped to 66 percent, rising from 53 percent in january. though current inflation isn’t bad at all, the tariffs haven’t hit yet. prices are bound to go up as imported products reach their ports of entry, leaving businesses unsure of their costs or how to price their products.
asked what will be most important to business over the next 12-18 months, eileen monesson says: “tariffs, because of the uncertainty associated with them.”
in the days between the election and the inauguration, not many accountants expressed concern about new tax legislation, but the politico-economic gyrations have raised worries enough that 60 percent of survey respondents now cite tax legislation as an issue of concern.
as eric seeman says, “new tax legislation – we’ll have more questions from clients than answers on what the new tax law will be.”
jon neal, head of the neal group in wisconsin, sort of agrees, telling us, “new tax legislation, because it could exacerbate or mitigate all the other issues.”
a self-perpetuating cycle
as if all that weren’t enough to keep business leaders awake at night, 42 percent of respondents say the labor supply and higher wages are still significant issues to be dealt with.
some see tariffs, inflation and wages all wrapped up in a self-perpetuating cycle. as r. ray cauthen, jr., cpa, says, “(i’m) fearful that tariffs will cause large price increases for many foreign goods. such tax will be passed on to the consumer, increasing the amount paid considerably. this will increase purchases made within the u.s. or a considerable reduction in items purchased (or both), leading to a potential recession. the makers of u.s.-produced products may very well see the opportunity to raise their prices.”
the ripple effect
technology? meh! it has fallen to the bottom of the main issues, indicated by only 37 percent.
on a lower tier is a sleeper issue: federal budget cuts and reorganization – again, a topic not on the radar in january and still very much an unknown. to what extent will federal agencies be decimated and deconstructed, where made more efficient, where left for dead? and what will be the impact on business? only 30 percent of responding accountants think this will be a important in the near-term future, though the gutting has just begun.
timothy hill, at holman frenia allison in central new jersey, says, “federal budget cuts will have a ripple effect throughout the u.s., especially for non-profit entities.”
ripple or tsunami? too soon to say. but businesses will need to be alert, and cpas will need to help them keep up with what’s on the horizon.
what do you think is coming? and how was your tax season? the busy season barometer needs to hear from you. click here to get started.