In any company, optimism can rise and fall based on a number of factors. For instance, the current state of the economy, oil prices, weather systems, the appointment of a new manager and countless other elements can greatly affect confidence in an accounting firm in either direction.
When things are going relatively well and optimism is high, this can open a lot of new doors for a burgeoning accounting firm. This is when owners should consider taking risks - like offering a new service, opening up a second branch or hiring additional staffers. After all, these types of actions wouldn't be taken if the company was worse off.
Canadian accountants are in luck, now, as recent information from CPA Canada Business Monitor for Q1 2014 revealed that professional bookkeepers in advanced positions are very optimistic about the current landscape.
Accounting firm leaders are looking forward
The Business Monitor, having surveyed professional accountants with high accolades, revealed that approximately 55 percent are optimistic about the state of the Canadian economy, representing an increase of 21 percent since the final quarter of 2013. Moreover, 73 percent of these individuals acknowledged that they think their revenue will grow in the next 12 months, and 66 percent predict an overall increase in corporate profits.
"There definitely is a strong undercurrent of optimism flowing through the survey findings," stated Chartered Professional Accountants of Canada President and CEO Kevin Dancey. "However, as we have said before, one quarter does not represent a trend but in this case the many encouraging signals do offer hope of a strengthening Canadian economy."
What should accountants do?
Some accounting firms, particularly those that have been achieving success for an extended period of time, may want to use this as a signal to expand their options.
That being said, according to Synnovatia, having too much optimism without a lot of solid evidence that this is warranted can be dangerous. For instance, the source recommended that accounting firm leaders have a realistic view of what their company is capable of.
"Entrepreneurs who view their business through rose-colored glasses often overlook early warning signs of trouble," the news provider noted. "A delayed response to early warning signs costs more in time, energy and money to execute a successful turnaround before it's too late."
On top of that, the resource explained that leaders should look over recovery strategies with a fine-toothed comb - while it's fine to be optimistic and even take some risks now, a contingency plan should always be waiting in the wings.