“Considering the current rising interest rates and inflationary cost conditions of 2022, I would rate Kentucky’s 2023 economic outlook as a 4. Many small businesses have been propped up from the Paycheck Protection Program (PPP) and Employee Retention Credit (ERC) stimulus programs during the pandemic. The public accounting industry is also facing some hurdles for 2023. CPA firms saw an increase in revenue due to helping our clients with the PPP and ERC programs and this stream of one-time revenue will also dry up for 2023. Lastly, CPA firms are in a war for talent and these staff shortages will continue to drive wage costs higher in our industry.”
“As we move through 2023, we expect the economy will grow but that will not be without some significant starts and stops. With inflation, ongoing supply issues and the threat of a potential recession, some entities will hold on to the cash they are sitting on and forego significant investments. However, there are deals to be had, so for some there will be great opportunity. In the public accounting industry, we continue to see an uptick in the demand for our services, particularly as we provide consultation on transactions and business changes (new geographies, service delivery, succession, etc.). To meet these needs, we expect to continue looking to grow our team of professionals and increase staffing.”
“Although we recognize that higher interest rates, lingering inflation, a tight labor market, and continuing supply chain issues will present ongoing headwinds, we expect the national and state economies to remain strong. As businesses wrestle with these issues and a pending recession, we expect more companies will outsource accounting, technology, and cybersecurity services to fill staffing needs with professional expertise and remain competitive in their markets. Dean Dorton has significantly grown organically and geographically in recent years. We plan to invest in new talent and new technology in 2023.”
“The amount of data available to everyone continues to grow. So, we have a keen focus on growing our business intelligence solutions to assist clients in effectively navigating and utilizing their available data, leading to more effective and efficient decision-making. Additionally, we expect to see increased demands to provide assurance on environmental, social and governance (ESG) information. We continue to have a strategic focus on retaining our current talent as they progress in their careers, attracting new members to the team and developing our services to meet the needs of our clients.”
