Trouble ahead on Main Street, a survey of accountants finds

Things don’t look great on Wall Street—and they’re not looking too hot on Main Street, either.

A survey of more than 600 accounting professionals advising small and mid-sized businesses found that their optimism has taken a nosedive in recent months, according to Avalara, a tax compliance software company, and CPA Trendlines, a research hub which co-produced the survey. We can file this under: Well, duh.

Net sentiment for the group plunged “from a positive 19% to a negative 39%” between January and April 2025. It was a steady downward trend: At the start of the year, 47% of respondents saw economic conditions improving. By April, that figure was down to 25%, while 64% of respondents expected the economic landscape to worsen.

The group was also fairly unified in its top concerns. Three in five respondents said inflation, costs, and pricing were top concerns among clients, and said the same of tariffs and trade uncertainty.

“Accountants are sounding an urgent alarm,” Rick Telberg, founder of CPA Trendlines, said in a statement. “They’re advising SMBs to conserve cash, curb discretionary expenses, and resist taking on unnecessary debt. Amid volatility in tariffs, inflation, and complex tax legislation, SMBs face serious barriers to strategic growth and operational stability.”

Accounting advisors expected small and medium-sized businesses to face substantial challenges over the next year, particularly around hiring and retaining talent, keeping up with changing technology, and handling rising costs.

“This year’s survey underscores a critical moment for the SMB business sector,” Sona Akmakjian, head of global strategic accountant partnerships at Avalara, said in a statement. “Clients are, more than ever, relying on the accretive business acumen and advisory skills of their trusted advisor for guidance through historic headwinds and uncertainty.”