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PCPS survey finds optimistic tone at small companies.

A nationwide survey of 2,000 companies with less than $25 million in revenues, conducted by the private companies practice section (PCPS) of the American Institute of CPAs division for CPA firms, found small company executives in a bullish mood.

PCPS executive committee chairman Jerrel Atkinson, a partner of Atkinson & Co., albuquerque, New Mexico, said, "Although respondents think the financial climate for their businesses has gotten worse in the past three years, they see a bright future ahead."

Almost three-quarters (71.6%) of those polled acknowledged the recession had hurt their business in some way. When asked to name specific factors, two-thirds cited reduced sales, profits or revenues. another 10% mentioned credit tightening by banks. However, more than two-thirds (69.7%) expected the economy to recover by March 1992, and 54.9% looked for 1991 revenues to be higher than those for 1990.

Small business leaders were notably less satisfied with their bankers than in 1990. Last year, 86% of those polled said their bankers were either "very" or "moderately willing to be able to support the company's business goals." This year, the total slipped to 75%.

Uneven cash flow ranked as the most common financial problem, cited by 33.9% of the respondents. This was followed by insurance premiums (23.9%), labor costs (22.6%) and taxes (21.3%).
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Title Annotation:American Institute of Certified Public Accountants Private Companies Practice Section
Publication:Journal of Accountancy
Date:Aug 1, 1991
Words:220
Previous Article:Business trends; 12-month moving averages of leading business indicators.
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