Harsh competition between two rival companies is typical in any industry. However, an economic spat between two countries can shake the financial balance of all seven continents. The issue also affects professionals across different sectors, most notably accountants.
The escalating trade war between the United States and China has uncovered questions about what role CPAs play in it. This article by Andrew Kenney in the Journal of Accountancy discusses the concerns regarding the trade war between the two.
Trade concerns widespread as economic outlook sags
Economic expectations for the United States and the world tumbled in the third quarter amid trade concerns and indications of a possible recession, according to the third-quarter Business & Industry Economic Outlook Survey released Thursday by the AICPA.
Forty-two percent of finance decision-makers are optimistic about the domestic economic outlook, compared with 57% in the second quarter and 69% a year ago. Only 24% were optimistic about the global outlook, a drop from 35% in the previous quarter. Click here to read more…
Accountants, whether CPAs or not, safeguard the trillions of dollars circulating across the world. Hence, their collective decisions can decide the fate of entire economies. Presidents in several countries rely on the accountant advisors for guidance on their economic policies and decisions for things as complicated as trade wars.
Some accountants, however, worry about the proper way they should react about the trade war. An article Andrew Siciliano published on the Journal of Accountancy last 11th of January 2020 demonstrates various ways CPAs can cope with the growing issue.
Confronting tariffs: Trade war tips for CPAs
As the disruptive and uncertain trade environment continues its dominance on the corporate boardroom agenda, CPAs at multinational companies are increasingly tasked with assessing its impact on their organizations and developing strategies for mitigating its potential negative effects. Although there are plans for the United States and China to sign the first phase of a trade deal within the next week, uncertainty over tariffs persists.
For many organizations, particularly those in industries that have enjoyed low tariffs and minimal trade regulation in the past, developing an effective response to address the risks of an intensifying global trade war presents a significant challenge. Click here to read more…
Preparing for the trade war, however, should not distract accountants form other issues hounding the country. The upward economy of the U.S. has been going for a couple of years now. Hence, questions arise whether this will sustain further.
A sudden change in the status quo can also cause shock waves across financial decision-makers in the U.S. This transcript by Neil Amato posted on the Journal of Accountancy discusses possible issues that accountants may face this 2020.
The outlook of finance decision-makers for 2020
Positive sentiment about the U.S. economy is easy to find among CPA decision-makers in business and industry, despite obstacles and the uncertainty that regularly accompanies an election year. Ken Witt, CPA, CGMA, lead manager for management accounting and member engagement for the Association of International Certified Professional Accountants, breaks down the reasons for optimism and hesitance for the year ahead.
What you’ll learn from this episode: Why the optimists in a recent survey see 2020 as a time for their businesses to grow. The concerns of those that are pessimistic or neutral about business growth this year. The issue that has ranked atop CPA decision-makers’ list of top challenges for 10 consecutive quarters. Click here to read more…
Aldaris CPA employs seasoned accountants always ready to help businesses with their financial needs. Our CPAs also update their skills to make sure that they are prepared for whatever issues may arise in the economy. Schedule an appointment with us by clicking here now!