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New research from CPA Australia has shed light on concerns facing the nation’s accounting profession for the month of December.
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Accountants’ business concerns revealed
15 December 2021
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CPA Australia’s latest research forms part of a longitudinal survey of business and economic sentiment. Previous surveys were conducted in August and October.
The latest research, released this week, shows that from October to December, uncertainty about when lockdowns will be imposed increased from 39 to 49 per cent.
Furthermore, the number of accountants worried about skills shortages doubled from 15 to 30 per cent during the same period, while problems attracting and retaining talent jumped from 38 to 46 per cent.
CPA Australia general manager external affairs, Dr Jane Rennie, said while economic confidence has improved over the past two months, business concerns appear to have intensified.
“The economy is bubbling along quite nicely all things considered,” Dr Rennie said. “Ironically, the strong recovery is creating a different set of challenges for businesses.
“The emergence of Omicron shortly before the survey opened seems to have reignited fears of lockdowns.
“Even though states and territories have released re-opening roadmaps, accountants clearly aren’t convinced we’ve seen the end of lockdowns. The results suggest lingering concerns that governments may re-introduce them, regardless of what’s been stated.”
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Inflation was also pinpointed as a growing concern for members. The research found the percentage of accountants worried about increasing costs almost doubled from 19 per cent to 36 per cent between October and December. Supply concerns also increased over the same period, from 17 per cent to 25 per cent.
“Businesses have limited wriggle room to pass price rises on to customers before they balk at making purchases,” Dr Rennie commented.
“If businesses must absorb these costs, this will eat into their margins right when they should be focused on re-building their profitability and cash flow.”
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