06Jun

Rising from a virus-caused pessimism about the economy and their own business, finance leaders are beginning to feel more confident about the future.

The third quarter Economic Outlook Survey from the AICPA shows optimism rising strongly among CFOs, CEOs and controllers about most parts of their business, and especially about revenue and profits.

There’s also improvement from the second quarter survey about the US economy, though a deep worry still prevails.

Quarterly, the Association of International Certified Professional Accountants surveys its CPA business and industry members in nine areas including the overall economic outlook, their own organization’s outlook, employment, expansion plans and revenue and profits. The results are tabulated to create an overall CPA Outlook Index and individual category measures.

The overall Outlook Index improved to 54 from 38 in the second quarter. A reading above 50 is considered a positive or optimistic sentiment. The second quarter’s reading was the lowest since the 2009 depression year.

Though only 24% of the respondents were optimistic about the US economy, it is an improvement of 4 points over the previous survey. The AICPA says the optimists “cite the possibility of pent-up demand and lower energy costs, along with resilience and innovation.” The pessimists point to the continuing COVID-19 disruption.

When it comes to their own business, the survey respondents are much more optimistic. For example, 43% say they have plans to expand their business, a 19 point increase from the 2nd quarter survey. And in a case of doing less bad, revenue and profits over the next 12 months are still expected to be down, but by much less than previously believed.

CPA Outlook Index 3rd q 2020.jpg

Headcount is about where it should be, say 55% of the respondents, a percentage that hasn’t changed much even since well before the pandemic. However, fewer companies now say they are overstaffed than was the case just a few months ago. And the percentage of companies planning to hire, still well below the 25% of a year ago, has nearly doubled since the last survey.

The Outlook drills down into industry sectors and geographic regions, most of which show growing optimism.

Photo by Austin Distel on Unsplash

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#WeAreGreenKey: Spotlight on Mike Bosco

Welcome back to #WeAreGreenKey, where we shine a spotlight on our powerhouse recruiting team.  

Recently, we met up with Mike Bosco, Staffing Director on the Accounting & Finance team at Green Key. Mike started his career at Green Key about 10 years ago, first as an intern out of the Long Island office, and quickly climbed the ranks to where he is today. He currently still works out of the Long Island office, supporting both the perm and temp sides of the business.

What do you enjoy the most about Accounting and Finance recruiting?

I really enjoy how fulfilling it is both personally and professionally.  I’ve been doing this for over 10 years and still encounter new situations and challenges.  At the end of the day, we’re the intermediary between our clients and candidates. Besides being able to fill positions for our clients, working with and helping people is very rewarding. Especially when we get positive feedback, or a referral, it feels gratifying knowing you not only made an impact but established a lasting professional relationship.

How do you stay informed about developments in the accounting and finance industry, and how does this knowledge influence your approach to recruitment?

Our team consists of industry professionals. We collaborate a lot as a team, meeting several times a week to discuss various recruitment strategies and target areas.  Particularly within public accounting, we prepare for the natural seasonality of hiring for our clients. Currently in the first quarter of the year, there’s not much hiring in public accounting, so we are more focused on recruiting for clients in the private sector and outside of public accounting. 

What advice would you give to candidates looking to stand out in the accounting and finance job market?

Value every interview you go on and prepare like it’s your dream job.  General preparedness, knowledge of the company, and showing genuine excitement in the opportunity to interview.  I think hiring managers, a lot of the time, are looking for somebody who has a particular interest in their organization, not somebody who’s just looking for a job.  Getting an interview typically shows you are qualified, but how do you stand out?  Personality, enthusiasm, being prepared, and how you can clearly articulate your skills are things that can be worked on prior to an interview that will make a huge impact on a hiring manager’s decision.

Are there any specific certifications or additional qualifications valued by employers in this industry?

As an accounting and finance recruiter, the CPA license is always something that would increase somebody’s marketability for any accounting position.  However, it depends on the individuals and their background. For instance, if I’m working with a payroll individual then perhaps not the CPA, but the certified payroll professional, the CPP certification, or an experienced bookkeeper might just have a certificate in QuickBooks.

2024 marks 20 years of Green Key, how would you describe your experience since starting your career with the Accounting and Finance team?

I started back in 2010, right after the 2009 downturn. I remember being told that things are slow right now, while the year before was a busy market. Fast forward to ten years later, the pandemic happened, and it almost seemed like I was seeing things full circle. Overall, my journey has been really interesting. I started when we only had two offices, the New York and the Long Island locations. We’ve since outgrown the original office space, going from about 5 people to about 40-50 in our current larger Melville office. So even though we were a 10-year-old company, seeing where we are now seems like I started in those infancy stages and now we’re on national basis. I’ve seen not only the growth of the team but also the different transitions of our VMS systems, starting with Encore, then Ultra, and now our newest version of Salesforce. I was able to see these different systems being implemented along with new policies and procedures across the company. I was also able to witness how the team and company adapted to challenges, for instance, through COVID and then have our bounce back year.

So, it’s really been an interesting journey to say the least. I’ve never really felt that the company or I have felt stagnant. It’s been nice to be at a place for as long as I’ve been to always feel personal and company growth. That’s something I’ve really enjoyed about working here and the people that I’ve worked with, I wouldn’t be here as long as I’ve been if I didn’t like who I’ve worked with.

With all that being said, this year we’re aiming to get back on track and continue to grow by cultivating strong relationships with new clients, as well as businesses we’ve worked with in the past.

Banking Trends That Are Here to Stay

More than ever, customers are turning to online banking to pay bills, transfer funds, and handle transactions they would have visited a branch for just a few months ago.

Baby Boomers, the generation most reluctant to have downloaded their bank’s mobile app, have embraced online banking in record numbers. Shortly after businesses were ordered closed, The Senior List found 77% of older Americans had conducted a financial transaction online.

This embrace of mobile banking is one of the banking trends that is here to stay, says an article in Forbes.

“It’s not just Boomers who are swiping right on online banking,” says Forbes. Citing a Boston Consulting Group survey conducted in June, the article notes that in the first three months of the pandemic 44% of 18-34 year olds enrolled for the first time in online or mobile banking.

Overall, Fidelity National Information Services, a service provider to the banking industry, reported new mobile banking registrations increased by 200%, and mobile banking traffic increased 85%.

“Once customers experience the convenience of mobile, they very well may never go back to traditional banking,” the Forbes article says. The Boston Group found a quarter of the new remote banking users claim they will visit bank branches less frequently in the future or not at all.

While e-commerce has exploded during the pandemic, banks have taken steps to streamline the payment process in brick and mortar stores. Forbes says some banks upgraded physical debit and credit cards to enable tap to pay. “Consumer usage of platforms like Apple Pay and retailer deployment of embedded contactless payment terminals like Square has also reached unprecedented levels,” the article reports.

In one area that before COVID hadn’t attained much traction, fintech startups and the industry generally have seen a spurt in demand for money management tools. Though 75% of respondents to a survey reported never using a personal finance app, since the pandemic 16% have. Here, it’s Gen Z and Boomers that are more aggressively turning to these services. A SYKES survey reported 23% of Gen Z and 18% of Boomers said they were new users to personal finance and budget apps.

“Fintech is an ever-evolving landscape — and it’s one that the pandemic has sent shock waves rippling throughout,” says Forbes, which concludes on this note: “Thanks to fundamental shifts in the way consumers perceive and depend upon digital finance tools today, these fintech trends just may stick around long after people have holstered their hand sanitizer.”

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