Accountants remain ‘pessimistic’ about economic recovery

Accounting body CPA Australia surveyed 144 accounting professionals earlier this month as part of a longitudinal survey of economic and business sentiment which found that 42 per cent were confident about the performance of the Australian economy over the next three months.

“General economic sentiment has lifted, which is positive; however, accountants remain more likely to be pessimistic notwithstanding rising vaccination rates,” CPA Australia chief executive Andrew Hunter said.

“We think this reflects ongoing uncertainty about reopening requirements and what they’ll mean for businesses, their employees and customers, as well as how future outbreaks will be managed.”

Those surveyed were far more optimistic about their own businesses over the next three months, with 68 per cent saying they were extremely confident in their performances.

Respondents were also optimistic when longer outlooks were considered, with 44 per cent saying they were confident about the state of the economy in 12 months’ time.

CPA Australia also reported an “unexpected” result, that only 28.5 per cent of respondents were saying that government business supports have had a positive impact on their business and/or clients.

“This surprised me, and I can’t say for certain why respondents feel this way,” Mr Hunter said.

“But from talking with members and businesses, I’d suggest that it’s a consequence of challenges associated with the design, rollout and administration of support and grant programs, and the fact that many businesses weren’t eligible despite experiencing difficulties.

“Issues such as these have left a sour taste in the mouth of many accountants. They’ve been the ones trying to make hastily designed and often vague support schemes workable for business.”

While confidence in the economy and business performance appears to be increasing over the coming months, the number one short-term challenge identified in the survey was the uncertainty around lockdowns, followed by attracting and retaining staff.

While 62 per cent said that border closures had a negative impact on their business, Mr Hunter said this issue should subside when international travel resumes in November.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.