The recession has significantly affected the way public accounting firms approach their practices. Clients, eager to trim expenses, have reduced the number of services used, which has made customer service a higher priority as firms try to maintain existing business. According to the American Institute of Certified Public Accountants' 2009 CPA Firm Top Issues Survey (PDF), client retention is the most significant challenge facing public accounting. In 2007, client retention didn't rank among the top-five concerns.

On the positive side, there continues to be demand for tax accounting services. Clients recognize they can achieve cost savings through better management of their taxes. They also need accountants to address increasingly complex tax laws and regulations. However, accounting firms are facing competition from the corporate sector for the best candidates.

Some hiring also is taking place at smaller firms. With lower overhead costs than their larger counterparts, these organizations often are able to build business by offering attractive pricing structures to budget-conscious clients.

Compensation packages in public accounting have seen notable changes. Salary levels have moderated, with declines reported in some areas. Additionally, instances of large signing bonuses and raises are far less common and typically reserved for premier performers.