2017 Forecast

New Jersey’s Business Challenges and Opportunities for a New Year

New Jersey’s Business Challenges and Opportunities for a New Year

LOOKING TO THE FUTURE IS ESSENTIAL for companies that want to plan for long-term success, and COMMERCE asked many of New Jersey top CEOs to offer their predictions for 2017. Here are their insights, observations and analyses. Are you ready for 2017?

ACCOUNTING

Baker Tilly

By Christine Anderson, CPA, CITP, Managing Partner of Assurance and Firm
Financial Services Industry Leade
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The financial services industry will continue experienceanderson_christine-8821 significant change, with new opportunities and threats. Technology and infrastructure investments will evolve how business is transacted and streamline how we work. While some of this change is fueled by compliance requirements, competitive advantage will be won by organizations leveraging data to provide additional services and enhance the customer experience.

BDO USA, LLP

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By Mark Giamo, CPA, NJ Office Managing Partner–Assurance, Co-Leader—NY Metro Technology Industry Practice

Our firm’s most recent Techno logy Update indicate s that as demand for hardware continues to contract, organizations are looking to capture recurring revenue through SaaS and cloud-based services. Tech companies are also focusing on making smart cloud investments to fill the software and service gaps introduced by the Internet of Things, virtual reality, etc.,and we expect continued M&A activity.

Bederson LLP

By Matthew Schwartz, CPA, CFF, CFE, CIRA, Partnerbedersonmatt-3

On Oct. 4, 2016, CNBC reported that Richmond Federal Reserve President Jeffrey Lacker said there was a strong case for raising interest rates, arguing that borrowing costs might need to rise significantly to keep inflation under control. My conclusion is that if the Fed does indeed raise interest rates, defaults will rise and the insolvency practice will be busy in 2017.

Deloitte & Touche LLP

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By Chris Cooper, Partner, U.S. Audit Leader, Life Sciences and Health Care

2017 will be a busy year for accounting and finance professionals with the focus on complying with the latest FASB accounting standards. The revenue recognition standard takes effect for public companies in 2018 and the leasing standard in 2019. The SEC’s interest in non-GAAP measures will also continue to be a major focus for businesses
across all industries.

EisnerAmper LLP

minneforjranthonyBy Anthony Minnefor, Partner, Financial Services Assurance Practice Leader—NJ, PA

We believe private equity and venture capital firms will continue raising new funds that invest in companies that create new industries or disrupt old ones. We expect innovative and growing financial technology, space and robotics companies to receive capital. The wildcard in this is if the Fed starts raising rates.

GKG CPAs

By Donald Karlewicz, CPA, CGMA, Managing Partnergkgdon-photo

With a new administration taking office in Washington, there is renewed hope for positive change. This will drive the economy, which I predict will continue its recent pattern of steady growth. A strong economic climate is good for accounting firms, so I predict that 2017 will be another growth year for our firm and for our industry.
Goldstein Lieberman & Company LLC

By Phillip E. Goldstein, CPA, Co-Founder, Managing Partnerphillip-goldstein

2017 will be a good year for our firm and the accounting industry. CPA mergers and acquisitions are no longer a passing trend; they are the new normal. Fortunately, we have become very adept at facilitating the melding together of different entities for our clients and ourselves. The future is bright for businesses that develop this skill as well.

Grant Thornton LLP

By Mike Bernstein, NJ Audit Partner-in-Charge (Iselin)

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The accounting industry must continue to stay relevant in a rapidly-changing business environment by making use of new technologies and recruiting excellent talent. Grant Thornton LLP is poised for continued growth with the firm’s “peoplefirst” culture and an unparalleled emphasis on quality. We help clients move confidently into the future through a broad range of advisory, audit and tax services.

KPMG LLP
By Mark Drozdowski, National Audit Leader–Life Sciences

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Pharmaceutical and biotech companies will see a greater proportion of their revenues coming from a strong pipeline of specialty drugs. Congress will continue to scrutinize drug prices, but any legal or regulatory action will depend upon the future legislative elections.

PKF O’Connor Davies, LLP

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By Kevin J. Keane, Managing Partner

With many changes in New Jersey’s tax environment, accounting firms will be counted on for advice and advisory services to help clients navigate this new paradigm. We expect more consolidation as niche players join larger firms to gain access to the resources and international reach needed to compete today. We see New Jersey as a continued growth market for our business.

Sobel & Co., LLC

By Mike LaForge, CPA, CGMA, 

Member of the Firm, Practice Leader, Manufacturing/Distribution Practice Group

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The recently proposed changes to IRS regulations (if adopted) would eliminate discounts on the valuation of family businesses. As a result and in anticipation of this rule passing, the timeline for a family business to engage in succession planning and asset transfer to the next generation may be accelerated. We recommend early, thoughtful strategic planning under any scenario.

WeiserMazars LLP
By Michael Rofman, CPA, Partnermichael-rofman

A low-growth economy seems likely to continue for 2017, giving rise to continued industry consolidation and PE investments. Logistics companies should focus on reducing overhead to maintain operating margins and look to automate billing processes with electronic data interchanges. The most successful logistics companies use IT systems to differentiate themselves from their competition, which will improve profitability and efficiency.

Wilkin & Guttenplan, PC

sefi-silverstein-a4497069Member of the Firm, Practice Leader, Manufacturing/Distribution Practice Group

The recently proposed changes to IRS regulations (if adopted) would eliminate discounts on the valuation of family businesses. As a result and in anticipation of this rule passing, the timeline for a family business to engage in succession planning and asset transfer to the next generation may be accelerated. We recommend early, thoughtful strategic planning under any scenario.

For more thoughts from BANKING, ENVIRONMENTAL BUSINESS, HEALTHCARE, HEALTH INSURANCE, HIGHER EDUCATION, LAW, TRANSPORTATION, and STAFFING professionals click HERE.

 

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