Accounting and Bookkeeping Loses 5,700 Jobs in June

June employment sinks to seasonally-adjusted 929,800, down from 935,500 in May.

Click to enlarge

In a month when the overall U.S. unemployment rate rose to 9.5%, little changed from May’s 9.4% jobless rate, the number of Americans employed in accounting and bookkeeping services declined slightly, down 5,700 jobs from May to a seasonally-adjusted 929,800 in June.

That’s actually up 500 jobs from April, seasonally adjusted. And it’s up 18,500 from the year-ago 948,000, seasonally adjusted.

Meanwhile, ADP is reporting:

Employment among small-size businesses, defined as those with fewer than 50 workers, declined 177,000 in June. Monthly employment losses in April, May, and June averaged 185,000. Despite a notable improvement over the first three months of the year, when monthly losses averaged 260,000, employment among small-size businesses is likely to decline for at least several more months. Since reaching peak employment in January 2008, small-size businesses have shed nearly 2.3 million jobs.

Total employment in the accounting and bookkeeping services sector seems to be faring well, compared to the rest of the professional and business services sectors. Today’s Bureau of Labor Statistics report says:

Employment in professional and business services dropped by 118,000 in June. Job losses occurred throughout the industry, including temporary help services (-38,000), services to buildings and dwellings (-17,000), and architectural and engineering services (-14,000). Since the start of the
recession, professional and business services has lost 1.5 million jobs; temporary help services accounted for over half of this decline.

For a long-term perspective on employment in the accounting and bookkeeping sector, here’s the latest 10-year chart from the Bureau of Labor Statistics, with data through May:

Posted on July 2, 2009
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

Recession hits revenues at small firms hardest

But bigger firms more likely to cut staffing.

New data from the PCPS CPA Firm Top Issues survey shows firms generally faring well through the recession. About 10% to 25% of firms, depending on size, report “no impact” from the recession.

QUESTION: What has been the greatest impact your firm has encountered during this economic crisis?

Still, the AICPA reports:

Based on the survey results, CPA firms appear to be weathering the storm remarkably well. When asked about the economy’s greatest effect on them, a solid proportion of firms with 20 or fewer professionals picked “no impact.” In fact, almost 25% of sole practitioners chose this answer. And a number of firms, including more than 10% of firms with 10 or fewer professionals, said that additional client services were one result of the economic crisis. It would seem that there are bright spots for some of the smallest firms even in uncertain times. Firms of all sizes did agree, by varying percentages, that the two most serious considerations for them were strains on accounts receivable and reductions in revenue. Firms with 21 or more professionals were the only ones to report issues with layoffs or staff reductions, although even in this group the problem seems to be minor.

More at http://pcps.aicpa.org/Weathering+the+Storm.htm

Posted on June 27, 2009
Filed Under BSG [CPA TRENDLINES] | 1 Comment

Survey Results: CPAs Are Not Quite Ready for FASB’s GAAP Codification

Early results are suggesting that most organizations remain unprepared for the biggest chgange in GAAP in 50 years.

After years in the making, the Financial Accounting Standards Board (FASB) on Wednesday, July 1, will launch the new GAAP (Generally Accepted Accounting Principles) codification.

That said, today’s results from working CPAs and finance managers are all the more interesting:


Don’t be alarmed if you’re only dimly aware of the GAAP codification project. Apparently other CPAs are too. One poll showed only about one in three accountants had looked into it. Another found less than half of all CFOs and senior comptrollers had even heard of the codification project

To be sure, GAAP itself isn’t intended to change, but its structure and presentation is changing significantly. Will you be ready? Join the survey here.


.
Still, it’s probably the biggest change in the structure and organization of GAAP “in over 50 years,” according to Mara Bruce, audit manager at Schneider Downs, the regional CPA firm based in Pittsburgh, Pa.

While it isn’t intended to change U.S. GAAP, this reorganization will change how accountants refer to guidance in financial statements and any underlying memos and research, Bruce said. “It’s time to start to learn to navigate through the codification, so you aren’t left in the dark.”

“U.S. GAAP will be completely reconfigured in a way that will vastly improve the ease of researching U.S. GAAP issues, superseding existing authoritative literature, including FASB’s original pronouncements,” FASB Chairman Robert Herz has said. “Preparers and auditors of financial statements need to familiarize themselves with the changes so that they are ready for
the switch.”

Join the survey; get the results.

Posted on June 24, 2009
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

Accounting Firm M&A Deals Surge in New York Metro Area

Through the first six months of the year, RF Resources has tracked 21 merger or acquisition deals in the New York metro area, compared with 26 in all of last year.

Source: RF Resources

“We expect that the number of deals in 2009 will exceed 2008,” CEO Robert Fligel reports in his exclusive and authoritative “deal sheet” bulletin to clients. “So far his year, RF Resources has identified 21 CPA firm deals in the New York Metro Area representing a 75% increase over last year at the same time.” (see chart upper right)

Posted on June 23, 2009
Filed Under BSG [CPA TRENDLINES] | 1 Comment

[Slide Deck] NetSuite Tees Up ERP Financial Planning Module

Teams with Adaptive Planning

NetSuite Inc., a leading vendor of on-demand, integrated business software suites for mid-market businesses and divisions of large companies, has announced plans to offer a new Financial Planning module to complement NetSuite’s leading on-demand accounting / Enterprise Resource Planning (ERP), Customer Relationship Management (CRM) and Ecommerce capabilities.

Here’s a look at their slide deck:

NetSuite ERP Financial Planning

View more OpenOffice presentations from rtelberg.

According to the company:

NetSuite with the new module will give companies of all sizes, cost-effective and timely access to highly sophisticated planning and “what if” modeling capabilities typically only available to large corporations willing to invest millions of dollars and months, if not years, implementing on-premise enterprise software.

With NetSuite and the new Financial Planning module, companies have at their disposal an end-to-end business management solution to support the business from strategy, to planning and execution in real-time. Unlike costly and cumbersome on-premise enterprise solutions, the Financial Planning module for NetSuite provides dynamic, real-time drill-down from top level results enabling users to review plan vs. actual variance, isolate the organization responsible for the variance, and drill down into the actual transactional details contributing to the variance. These product features can help companies streamline business processes, improve financial agility, strengthen collaboration and the ability to drive better-informed, strategic decision-making.

“With this new Financial Planning module, NetSuite fills a gap in the business performance management landscape,” said Michael Fauscette, GVP Software Business Solutions at IDC. “Available on-premise tools come with higher overhead, while spreadsheets offer little benefit when it comes to collaboration across a distributed organization. With the new Financial Planning module, NetSuite delivers strategic visibility to organizations that will help them change the way they do business.”

“By implementing NetSuite and the Financial Planning module, we have been able to link together strategy, planning and execution,” said James Jones, Director, Financial Planning and Analysis, KANA Software. “We can continuously monitor actual performance while rapidly analyzing multiple ‘what-if’ scenarios, which allows us to be far more nimble and effective in making both tactical and strategic decisions.”

“Companies who make rapid, well-informed decisions, and execute with discipline, win in the market place,” said Jim McGeever, CFO of NetSuite. “By delivering sophisticated business management, planning and modeling software via an on-demand model, we are providing midsized companies and divisions of large corporations with a set of capabilities previously reserved for elite enterprises. In so doing, we’re not only helping to make our customers more productive, but we’re also enabling them to more effectively compete with – and in many cases outperform – their larger rivals.”

With NetSuite and the new Financial Planning module, mid-sized companies and divisions of large enterprises have a cost-effective alternative to the high price tag of on-premise enterprise solutions and the chaos of multiple spreadsheets thanks to a Software as a Service (SaaS)-based delivery model, relatively quick implementation timelines and ease-of-use that empowers the business user rather than requiring specialized IT skills. And best of all, businesses can get strategic value by having a single source of data and metrics delivered in real-time, enabling better decision making.

Posted on June 23, 2009
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

Capstone Marketing and Bay Street Group LLC introduce ‘Seven Keys to Successful CPA Firm Management’

Seven Keys to be Shared in Webinar Series

CHESAPEAKE, VA, JUNE 23, 2009 - Bay Street Group LLC and Capstone Marketing, two leading marketing and market research firms to the CPA profession, have joined forces to conduct a ground-breaking and comprehensive investigation into the critical success factors for today’s accounting firm.  The Seven Keys to Successful CPA Firm Management, www.baystreetgroup.com/sevenkeys, is based on research conducted over the past year including thousands of survey responses and interviews with leading authorities.

The Seven Keys are:

1.            Leadership,

2.            Technology,

3.            Marketing & Business Development,

4.            Client Satisfaction,

5.            A Great Place to Work,

6.            Learning Organization, and

7.            Strategy Execution.

“Our research identifies the best practices and common characteristics that separate the competitively successful firms from the not-so-successful,” explains Jean Caragher, Capstone Marketing.  “We’re calling them ‘The Leaders vs. The Laggards.’”

“Leaders enjoy above-par, even world-class, performance in the generally accepted metrics of practice management,” continues Rick Telberg, Bay Street Group LLC, “including revenue growth, profit margins, technical excellence, client satisfaction, staff morale and tenure, and professional reputation and brand value.  Leaders clearly do things differently. And they clearly get superior results. ”

“Leaders,” for instance, are 19 times more likely to show superior revenue growth than “Laggards.”

Details of the research will be unveiled in a series of monthly webinars starting Tuesday, July 14, 2009, at 1 pm Eastern, with “Leadership: New Rules for the New Normal.”

In “Leadership: New Rules for the New Normal,” Caragher and Telberg will reveal:

Registration for the one-hour webinar on Leadership, July 14, is now open at http://baystreetgroup.com/store/product_detail.php?id=7keys-LE-09. Price: $79; or $449 for the entire seven-part series, a 20% discount.

For further information contact Jean Caragher, Capstone Marketing, jcaragher@capstonemarketing.com, 757.673.6826 or Rick Telberg, Bay Street Group LLC, rtelberg@baystreetgroup.com, 914.674.4531.

Posted on June 23, 2009
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

CPAs Tell Clients: Put Your Money in Cash, Gold, Bonds

The AICPA is reporting that a significant number of CPA financial planners - 40 percent - are strongly recommending that their clients hold larger cash positions.

Lyle K. Benson, Jr., CPA/PFS, founder of L.K. Benson & Company, Baltimore, Md., said the behavioral changes in wealthier Americans illustrate the need for a greater emphasis in financial planning. “We are reassessing our clients’ risk tolerance and when necessary reallocating their current portfolio assets,” Benson said.

CPA Personal Financial Specialists are advising clients to rebalance their portfolios, reassess their tax planning and control their expenses and cash flow. What that means for individual choices about asset classes and portfolio decisions depends on what the individual’s investment goals are, what their risk tolerance is and how much of their net worth is available for investment, according to Benson.

“Now more than ever, our clients are seeking our financial expertise to guide them through these uncertain economic times,” said Benson.

Clients are saying that they’re dining out less frequently and ordering less expensive wines and premium liquor brands. Many are having items repaired, rather than purchasing new ones and they’re taking fewer or less expensive vacations.

CPAs holding the Personal Financial Specialist credential are experienced professionals who are in the best position to help their clients to stay on track with their financial plans even when the economy takes unexpected turns.  PFS credential holders have the education and expertise to help people develop financial plans that anticipate and protect against downturns.

Posted on June 22, 2009
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

Are You Ready for GAAP Codification?

The biggest change in 50 years is coming.

by Rick Telberg

After years in the making, the Financial Accounting Standards Board (FASB) on Wednesday, July 1, will launch the new GAAP (Generally Accepted Accounting Principles) codification.

Don’t be alarmed if you’re only dimly aware of the GAAP codification project. Apparently other CPAs are too. A recent reader poll in the AICPA CPA Letter Daily showed only about one in three accountants had looked into it. A few weeks ago, a Grant Thornton survey found less than half of all CFOs and senior comptrollers had even heard of the codification project.

Is your organization keeping up?

Join the survey; get the answers.

(Free. Confidential)

Still, it’s probably the biggest change in the structure and organization of GAAP “in over 50 years,” according to Mara Bruce, audit manager at Schneider Downs, the regional CPA firm based in Pittsburgh, Pa.

While it isn’t intended to change U.S. GAAP, this reorganization will change how accountants refer to guidance in financial statements and any underlying memos and research, Bruce said. “It’s time to start to learn to navigate through the codification, so you aren’t left in the dark.”

On July 1, FASB launches its Accounting Standards CodificationTM (referred to and referenced as FASB ASC) as authoritative. As the single source of authoritative U.S. accounting and reporting standards for nongovernmental entities, the new FASB ASC replaces a system of GAAP rules built up piece by piece over decades dating back to the Accounting Principles Board, which was disbanded in 1973 after issuing the profession’s first 30 pronouncements in 24 years.

“For people like me, who have grown very accustomed to the existing setup, it’s going to be a particularly big change,” says Ben Neuhausen, national director of accounting for BDO Seidman. “Our whole way of thinking about accounting references is going to change.”

The codification changes the GAAP hierarchy by removing the current four-level U.S. GAAP hierarchy and replacing it with simply two levels: authoritative and non-authoritative. When the codification becomes the single source of authoritative U.S. accounting and reporting standards, it will supersede all existing pronouncements of the FASB, the EITF (Emerging Issues Task Force) and the AICPA.

That means, according to Amy Eubanks, director of accounting and auditing publications at the AICPA, no more FASB Statement Nos., FINs, accounting SOPs (Statements of Position), etc. Those standards you’ve come to memorize such as FIN 46 or FASB Statement No. 133 will have a new FASB ASC reference for you to now refer.

The codification incorporates the entire GAAP hierarchy (for nongovernmental entities), including:

The FASB’s codification includes a Web-based search tool, FASB Accounting Standards CodificationTM Research System, offering the ability to select multiple sections from different topics and subtopics and join them into a single document. A cross-reference feature allows users to see where current standards are located in the codification’s topical structure.

“U.S. GAAP will be completely reconfigured in a way that will vastly improve the ease of researching U.S. GAAP issues, superseding existing authoritative literature, including FASB’s original pronouncements,” FASB Chairman Robert Herz has said. “Preparers and auditors of financial statements need to familiarize themselves with the changes so that they are ready for
the switch.”

“This affects CPAs across the board: financial statement preparers, auditors, academics and analysts alike,” said Eubanks.

Wondering what to do first? Start here, with some Eubanks recommends:

  1. CPAs can start by visiting the FASB ASC site as well as the AICPA dedication site. Read and share the AICPA’s “Where Will You Be When GAAP Is Codified” (PowerPoint presentation). Consider using this resource to conduct training sessions for members of your entity
    or firm.
  2. Familiarize yourself with the codification so you can identify and cite authoritative GAAP as appropriate.
  3. Conduct impact studies on what this change means to your entity’s or firm’s documentation including such things as accounting policies and procedures, technical accounting memorandums, financial statements, and engagement working papers. For example, you’ll need to update documentation regarding determination of levels within the fair value hierarchy of FASB ASC 820, Fair Value Measurements and Disclosures(instead of FASB Statement No. 157) in your entity’s accounting policies and procedures or in your firm’s related engagement
    work papers.
  4. Determine which set of financial statements will first need to reflect FASB ASC. The FASB ASC will be effective for interim and annual periods ending after September 15, 2009, which means that preparers must begin to use FASB ASC for periods that begin on or about
    July 1, 2009.

Eubanks mentions two more important points:

To be sure, GAAP itself isn’t intended to change, but its structure and presentation is changing significantly. Will you be ready? Join the
survey here.

AICPA RESOURCES: FASB Accounting Standards Codification. Where will you be when GAAP is codified?

Posted on June 22, 2009
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

(VIDEO) Social Media and Web 2.0 Session at the MDBizExpo 2009 - Part 1 of 6

Posted on June 22, 2009
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

[Video] Now Posted: Social Media and Web 2.0 Session at the MDBizExpo 2009

Bill Sheridan acts as moderator.

The panelists, from the left, are: Francine McKenna (retheauditiots.com), Alexandrea De Felice (@AICPA_JofA), Rick Telberg (Bay Street Group LLC),  Will Burns (Maryland Chamber of Commerce), and Edith Orenstein (Financial Executives Institute).

Panels discuss the numbers of CPAs moving to social media, the opportunities, costs and risks, Part 1 of 6 parts.

Posted on June 22, 2009
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

Arnold Sanow: 50 Ways to Make a Lasting Impression

Tip #1: Make people your passion

Arnold Sanow, MBA, CSP, asks “Wouldn’t you agree that life is about quality connections?”

“Our success, happiness, and well-being,” he says, “are largely the by products of our ability to get along well with others and cultivate positive relationships.”

Here are 49 more active ingredients in creating enduring connections to make lasting impressions. These are from the book, “Get Along with Anyone, Anytime, Anywhere … 8 keys to creating enduring connections with customers, co-workers … even kids” by Arnold Sanow and Sandra Strauss.

· Be interested, not just interesting
· Be a conscious connector in building positive relationships
· Boost good feelings in others
· Communicate with care
· Engage the interest of others by focusing on what interests them
· Approach each interaction with positive intent
· Take the initiative to reach out to others first
· Project a positive presence
· Be attentive
· Express empathy
· Build trust; mean what you say, and say what you mean
· Adapt how you communicate to best serve what others need
· Act in ways that make people feel valued
· Give feedback tactfully and receive it willingly
· Create a sense of safety and openness
· Mend misunderstandings
· Keep an open mind
· Seek to understand how others see a situation
· Acknowledge and honor the feelings of others
· Monitor and master your emotions
· Hear people out
· Drop any need to “be right”
· Let go of grudges
· Manage difficult interactions with effective strategies
· Greet people with a smile
· Open your heart when it closes
· Seek peace when others don’t
· Be responsive to what others want or need
· Respect differences
· Let words of caring and kindness work magic
· Don’t take anyone for granted
· Thank people for their help, their time, their service, their thoughtfulness, their caring, and their support
· Act as a catalyst to help others get what they want
· Praise positive behaviors
· Energize the winning spirit
· Make the right choices to create desired outcomes
· Give people credit for their ideas
· Express a dazzling attitude, even when it’s difficult
· Resolve conflicts with diplomacy
· Build bridges that join; remove walls that separate
· Release negative labels (of yourself or others)
· Speak your truth
· Accept responsibility; avoid playing the blame game
· Forgive others (and yourself) for flubs, faux pas, and foibles
· Light the way with laughter
· Project a cooperative spirit
· Express enthusiasm
· Encourage the expression of gifts, talents and personal excellence
· Model the behaviors you want others to express
· Handle every connection with care and keep them in good repair

Arnold Sanow, MBA, CSP (Certified Speaking Professional) works with his clients to assist them in improving, increasing and maximizing individual and organizational performance. He accomplishes this by delivering speeches, seminars, training, facilitation and consulting.

Hear Arnold talk about Getting Along on ABC News…

…and how to keep your attitude upbeat at FOX news

Posted on June 20, 2009
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

Aronson CPAs: Top 10 Federal Small Contractors - Not So Small After All

The CPAs at Aronson & Co. crunched the numbers.

The ten biggest “small business” federal contractors look more like big businesses.

“We did a quick roundup of who might be the top small businesses in the federal government as of June 2009. What is most surprising, if it is at all, is that none of the companies on the Top 10 list really appear to be small! Go figure.”

Go figure, indeed. Can you spell s-c-a-n-d-a-l?

Top 10 Federal Small Businesses as of June 18 2009

Aronson:

Percentages based on total analyzed spending of $ 223,191,890,355. For further details about these and other reports please visit: to www.fedmine.us or email Ashok Mehan at: amehan@fedmine.us.

Aronson’s Fed Point blog is one of the best in the business. And this kind of thing shows what it can do.

Posted on June 19, 2009
Filed Under BSG [CPA TRENDLINES] | Leave a Comment

The New Rules for Your Career

Why CPAs need to re-think their goals in this economy.

by Rick Telberg

With the economic and business landscape shifting dramatically, finance and accounting career strategies need to change too.

Leaders, managers and staff alike need to understand the new rules of the workplace as companies and clients across the globe seem to adjust on a daily basis to changes in economic trends, financial conditions and the business outlook.

Those who are best able “to adapt to shifts in priorities and successfully execute” will be best positioned to survive the organizational shakeouts and help their firms and companies move forward, according to a new study of 200 finance and accounting leaders by Ajilon Professional Staffing, the global employment agency.

Organizational priorities are changing as fast as the economy, according to the authors of the study, and with them, professionals need to adjust their personal career strategies. For instance, during periods of economic growth, many organizations focused on recruiting top talent. But today, with many firms and companies shedding personnel, they are focusing instead on generating revenue.

The question for finance and accounting professionals: Have you shifted your personal goals and objectives to align more precisely with the changes at your organization?

And the question for organizations is: Are you adequately acknowledging the reality of the changed environment, setting new goals and priorities for your organization and rewriting compensation and incentive plans to reward the right behaviors?

Some of those conversations cannot be avoided, even as many leaders try. John Engels, a long-time leadership coach based in Rochester, N.Y., at Leadership Coaching Inc., warns that, “for leaders,” especially, “the consequences of side-stepping difficult yet important discussions can be particularly dire.”

It’s only natural, he says. But there are a couple of strategies that can help:

1. Gain some perspective — Leaders who are well-grounded and stable in their own personal lives may be better equipped to deal with the emotional crises of a company undergoing painful transition. “They are more likely to believe that an uncomfortable conversation is not a federal case,” he says, and so, not over-react.

2. Apply some clear thinking — Instead of automatically avoiding situations, good professionals are always asking themselves: “What’s good for the organization?” “What tone of voice would be the most productive?” “What outcome do I want?”

“Discomfort,” Engels says, “has been called the necessary companion of progress.” The best professionals, he says, “move through their own discomfort instead of nervously looking for ways around it.”

The irony, according to Ajilon, is that “soft skills” are essential to navigate through organizations under stress. But “hard skills” are still most rewarded. And maybe that’s understandable.

But today, Ajilon’s panel of experts say the ability to inspire and motivate, to communicate and persuade and to manage people’s emotions and expectations are “the most important qualities to be successful.” Decision-making skills and even financial and technological acumen “crept down to the bottom of the list.”

So the most important thing about being a finance or an accounting professional may be neither finance nor accounting. Instead, it may be the ability to help people confront difficult issues and to find new solutions.

But then, no one said it was going to be easy.

Posted on June 18, 2009
Filed Under BSG [CPA TRENDLINES] | 1 Comment

keep looking »