Business Up Front - February 2006

Business Up Front

Outsourcing Tax Returns

According to Jeanne Yamamura, chairman of the Nevada Society of CPAs, an increasing number of U.S. tax services are being outsourced to India. In 2003, approximately 25,000 U.S. tax returns were completed in India. In 2004, that number grew to 100,000 and for 2005 it is expected to be 400,000. "Anything that can be digitized and routinized is being moved to lower cost providers," warns Yamamura, who notes that India produces more than 70,000 accounting graduates a year who work for approximately $100 a month. She advises accountants: "Push yourself up the value chain to be the ‘idea’ person, not the person doing the grunt work. Successful accountants will be those who provide creative solutions to problems."

 

Nevada Sees Robust Job Market

Nevada employers expect to hire at a brisk pace during the first quarter of 2006, according to the Manpower Employment Outlook Survey. From January to March, 40 percent of the companies interviewed plan to hire more employees, while only 3 percent expect to reduce their payrolls, according to Manpower spokesperson Jim Andres. Another 55 percent expect to maintain their current staff levels. For the coming quarter, job prospects appear best in construction, education, transportation/public utilities, wholesale/retail trade, finance/insurance/real estate and services. The national results of the Manpower Employment Outlook Survey reveal that 23 percent of U.S. employers anticipate an increase in hiring activity for the first quarter of 2006, while 10 percent expect to decrease staff levels. Sixty-one percent of employers surveyed foresee no change in hiring plans, while 6 percent are unsure of their staffing needs.

EMPLOYMENT OUTLOOK SURVEY

1ST QUARTER 2006

The following table shows the percentage of employers in the state of Nevada who plan to change or maintain the size of their workforce during the indicated time period.

Report Links Education and Income

The proportion of U.S. workers with high school diplomas and college degrees will decrease and the personal income of Americans will decline over the next 15 years, according to a report by the National Center for Public Policy and Higher Education. The drop in the average level of education is due to large increases in segments of America’s young population without a high school diploma or college degree, combined with the retirement of baby boomers, the most highly educated generation in U.S. history.

The report also identified:

A drop in the average educational level of the workforce would decrease the nation’s tax base. Personal income per capita is projected to decline from $21,591 in 2000 to $21,196 in 2020, a drop of 2 percent.

The U.S. has not kept pace with other developed countries in increasing the education of its workforce; the young population in this country is not as well-positioned as their counterparts in other nations to compete for high-skilled jobs.

If states are able to close the educational gaps among racial/ethnic groups in this country, then the percentage of working-age Americans earning a bachelor’s degree is projected to jump from 17 percent in 2000 to 24 percent in 2020, and total personal income of the U.S. is expected to increase by $425 billion.

"Education is one of the most effective ways for individuals, communities, states and the country to improve our social and economic future," said Patrick Callan, president of the National Center. "Given the changing global marketplace, the high school diploma is no longer enough for people seeking good jobs or for the country to protect our standard of living."

How to Get More Than You Expect in 2006

Graham Communications, a marketing services and sales consulting firm, offers the following advice to make 2006 a profitable and productive year:

Focus on saving money for customers – Come up with solutions that reduce costs without compromising quality. If it isn’t necessary or correct, don’t let them buy it.

Be the consultant – Know your customer’s business so you can offer workable options, which may or may not be related to what you sell.

Offer ways to save time – Develop a schedule for all types of planned contacts (phone conferences, direct mail, email and in-person).

Focus on differentiation – Avoid having anything you sell be perceived as a commodity.

Keep the CEO out of marketing – CEOs tend to view everything through company eyes and have a difficult time thinking like a customer. Make sure you have a capable marketer available to help the CEO understand the role of marketing.

Don’t get distracted –New, exciting ideas can be dangerous if they distract from getting the job done.

Avoid overload – Tantalize customers and prospects with one benefit, one concept or one opportunity at a time.

Persistence is power – Decisions are delayed and often drawn out over months, so be there when a prospect is ready to buy.

Business isn’t warfare – It’s less about beating the competitor and more about getting and keeping customers.