Pessimistic accountants

A new survey conducted by the American Institute of Certified Public Accountants and the University of North Carolina’s Kenan-Flagler Business School shows that optimism among certified public accountant executives stabilized in the fourth quarter as prospects for a recovery pushed back to the second half of 2010 or later.

"The improvement in confidence among CPA financial executives that we saw in the prior six months appears to have leveled off," Carol Scott, AICPA vice president for business, industry and government, said in a statement. "The good news is our members in business and industry — chief financial officers, controllers and CPA financial professionals — are saying the economy hit bottom six months ago. While there is some expansion taking place, the prospects for broad-based recovery remain uncertain.”

The fourth quarter AICPA-UNC survey was conducted via an online questionnaire from Oct. 21 to Nov. 9 and included 1,201 CPAs who hold leadership positions such as chief financial officers, or controllers in their companies.

SURVEY FINDINGS
• Forty percent of CPA executives expressed pessimism about the economy while 27% were optimistic. These percentages were virtually unchanged from the prior survey in July.

• A majority of respondents, 61%, do not believe the economy will begin to improve until the second half of 2010 or beyond, up from 43% who held the same expectations three months ago.

• One in four thinks it will be 2011 before the economy begins to improve.

• Only 38% are optimistic about the prospects for their own organization, consistent with the third quarter.

• However, 45%, up from 42% last quarter, now expect their businesses to expand in the next 12 months.

• "This result reflects the hesitancy and cautiousness seen elsewhere in the survey," Scott said. "While CPAs are seeing signs of improvement and expansion, these are small improvements and respondents are not yet confident they will continue."