Mother Nature decided to have a bit of fun with the region Oct. 29, treating it to a Nor”™easter that knocked out power to hundreds of thousands and wrought havoc on transportation systems. While millions had to deal with digging out, accountants were already working on a “blizzard” of returns to get out by midnight, Oct. 31. The state did allow a reprieve and certain returns were given until Nov. 16 to be filed in counties declared a disaster area, including Dutchess, Orange, Putnam, Rockland, Sullivan and Westchester.
Fortunately, HV Biz reached out to some of these snowed-under CPAs before the storm hit, asking them what advice they had for businesses trying to grow in times of uncertainty. One of them was Thomas P. Kennedy, managing partner at the New Windsor offices of O”™Connor, Davies, Munns & Dobbins L.L.C.
How have new federal regulations (including Sarbanes-Oxley Act, Dodd-Frank Act and other federal and state legislation) affected your company and its clients?
“The accounting profession, my firm and our clients are subject to an enormous amount of state and federal regulation. We service SEC clients and accordingly we”™re subject to PCAOB (Public Company Accounting Oversight Board) scrutiny.
“Many of our health care clients ”“ nursing homes and hospitals ”“ are subject to New York state”™s aggressive efforts to recoup Medicaid funds through the Office of the Medicaid Inspector General. Many New York state not-for-profit organizations have recently been contacted by the Governor”™s Office inquiring as to their policies regarding executive compensation. That”™s why, in this ever-evolving regulatory environment, it”™s important to work with firms that are leaders in their industry or practice areas.”
Are you seeing more bankruptcies and foreclosures despite the “official” end of the Great Recession?
“We continue to see page after page of bank ”˜notice of sale”™ foreclosure disclosures in the local newspapers. Unemployment rates are staggering across the country. Banks are eager to lend, but are having difficulty finding credit-worthy borrowers. The stock market is extremely jittery based on local and global events, and the housing market continues to stagnate.
“Even though we”™re told that the recession is over, business owners are reluctant to make investments, expand businesses or hire new employees because of a general unease over the economic climate. Who can blame them? However, it appears things are slowly getting better. We”™re starting to see an increase in transaction work, which means companies are buying and hiring, albeit at a slower pace than we”™d like. Governments are controlling costs and attempting to attract investment back to local communities.”
What advice do you have for business owners who trying to stay afloat?
“We recommend our clients continue to manage their costs, avoid risky transactions or overextend themselves and to continue to do their homework (due diligence) on new deals before making a commitment.”
What should employers do to prepare for what”™s ahead in 2012?
“In preparing for opportunities that lie ahead, business owners should strive to maintain liquidity to avail themselves to opportunities or protect themselves from uncertain outcomes and contingencies.
“Business owners should maintain working relationships with their attorneys, bankers and CPAs to remain abreast of regulatory, lending market and tax law changes. In addition, businesses should remain active in their trade associations and local chambers of commerce to identify industry developments, business incentives, partnerships and opportunities.
“A vital part of any industry is the ability to attract, train, develop and retain human resources. Businesses should strive to provide a competitive mix of employee benefits including health care and retirement benefits to their employees.
“Most importantly, businesses should remember what it was that made them successful in the first place and focus on it with a personal touch. Things will get better for those businesses that are poised and ready for the change.”
