New Jersey CPAs Have a Positive View of the State’s Economy and See Higher Taxes for Clients, Capital One Bank Survey Finds
New Jersey (August 4, 2014) – A recent Capital One Bank and New Jersey Society of Certified Public Accountants (NJSCPA) survey found that most CPAs in the state expect their business to grow in the coming year and have a positive view of New Jersey’s economic performance. A majority also anticipate that their clients will pay more taxes in 2015 than they did in 2014.
Capital One Bank and the NJSCPA conducted the second annual survey during the NJSCPA Annual Convention and Expo in Atlantic City, New Jersey, in June.
Seventy-four percent of those surveyed feel the New Jersey economy is performing as well or better than the national economy, and 26 percent feel the state’s economy is doing worse than the nation overall.
Sixty-five percent of the CPAs surveyed expect their clients to pay more taxes in 2015 than they did in 2014, compared to 79 percent in last year’s survey. Only 2 percent expect their clients to pay less in taxes. Additionally, 45 percent of respondents said they expect increased taxation will have the largest impact on their own businesses over the next 12 months, a finding nearly unchanged from last year’s 46 percent. Respondents also expect health care reform, rising interest rates and limited access to credit to affect their business in the coming year.
Despite tax rate concerns, 73 percent of the CPAs surveyed expect their businesses to grow during the next year. This result is slightly less optimistic than 2013, when 87 percent anticipated growth in the year ahead. However, 60 percent feel their firm’s financial performance is better today compared to one year ago, slightly better than last year’s 56 percent figure.
“It’s encouraging that the New Jersey CPAs anticipate their business will continue on an upward trajectory, despite expectations of increased tax burdens,” said Bill Gascoigne, Senior Vice President, Capital One Bank. “Capital One Bank’s team of experts is dedicated to helping these professionals find solutions for their day to day needs while navigating the business environment to successfully grow.”
“Changing demographics and ever-increasing regulations are just a pair of key challenges that businesses are facing now and in the foreseeable future,” says NJSCPA CEO & Executive Director Ralph Albert Thomas. “So it becomes even more imperative for them to turn to their CPA to help them navigate the turbulent business and financial landscape.”
Thirty-two percent of survey respondents said the biggest challenge facing the accounting industry this year is the number of standards, such as GAS, GAGAS, U.S. GAAP, followed by a skills shortage (29 percent) and new rules and regulations (29 percent).
Note to Editors
Capital One Bank and the New Jersey Society of Certified Public Accountants (NJSCPA) conducted a survey of attendees at the NJSCPA Annual Convention & Expo in Atlantic City, New Jersey. The survey, conducted on June 4-6, 2014, was developed to gauge sentiment of the local New Jersey economy, taxation landscape and accounting industry in the coming year. Percentages are based on the responses of 97 Certified Public Accountants (CPAs) in attendance at the conference.
About Capital One Bank
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N. A., had $205.9 billion in deposits and $298.3 billion in total assets as of June 30, 2014. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has approximately 900 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.
The New Jersey Society of Certified Public Accountants, with more than 15,000 members, represents the interests of the accounting profession and advances the financial well-being of the people of New Jersey. The NJSCPA plays a leadership role in supporting the profession by providing members with educational resources, access to shared knowledge and a continuing effort to create and expand professional opportunities.