As the year comes to a close, it's natural for us all to take a moment to reflect. At C&A, we're no exception, and we're thrilled to say that it has been an incredible year for both our team and our clients.
However, we're always keeping our eyes on the future. With that in mind, we'd like to share some of our quick-hit predictions for the tax profession, the tax code, and the landscape that taxpayers and business owners will navigate in 2024.
No Hail Mary
It seems highly unlikely that we will see a year-end tax bill from Congress. It appears that any new tax bills will be deferred until the 2024 tax year, so unfortunately, we cannot hold onto hope for a beneficial reduction or new strategic opportunities. As they say - it is what it is. However, there are still actions you can take to reduce your 2023 taxes. In fact we recent put on a webinar on things you can do before AND AFTER year-end. Here's a record of the event.
The Accounting Industry Remains "Taxed"
The accounting industry is facing significant challenges. Graduates with accounting degrees have been declining for multiple consecutive years, with a nearly 8% decrease in 2022, as reported by the Wall Street Journal. Additionally, Bureau of Labor Statistics data shows that over 300,000 accountants left the industry between 2021 and 2022 alone. This has led to a contraction in the industry while demand continues to rise. With increased demands on their time and higher expectations from their clients, CPAs will need to look for ways to expand their offerings to keep their clients. We discussed this topic in more depth a couple months back.
The Economy Is...Stuck
The predicted recession never really happened, and while inflation seems to be easing, the cost of everything remains inflated. There is talk of declining interest rates but the economy seems to be stalling a bit and businesses are taking a more cautious approach when it comes to investing in new projects or growth. We remain in wait-and-see mode.
Smart Taxpayers and Business Owners Need to Question Everything
Now is the time to reinvent.
When the economy is sluggish or stagnant, the path to growth is constant evolution and reinvention. The customer, regardless of whether you're B2B, B2C, or professional services, has never been more informed, their expectations are higher and their options are plenty.
Business owners are grappling with economic factors, the changing workforce, navigating remote workplaces, the upcoming Presidential election, and the ever-present opportunities (and threats) presented by tech, AI in particular.
If you're reimagining and reinventing your business your taxes have to be part of that calculus. If you keep doing the same things, you'll keep getting the same - or more likely worse - results. You must continually evaluate and adapt to your situation.
Even as we round out the year, when it comes to your taxes, now is the time to question everything. Taxes are one of your largest financial burdens, in uncertain times, exploring how you can reduce your taxes is one of the most important steps you can take.
If you have questions, we can help, get in touch with the team at C&A and set up a 15-minute call to review your tax situation.
