You’d think that every CPA would be on the same side in this fight.
But just as the New York CPA society, led by CEO Lou Grumet, nears a compromise with state lawmakers to advance mobility, some of the biggest firms say they want more, threatening the deal Grumet has crafted. READ MORE →
KANSAS CITY, Mo. – H&R Block Inc. (NYSE: HRB) today reported tax season results for the interim periods March 1 -15, 2008 and Nov. 1, 2007 – March 15, 2008. Excluding lending-products-only clients, Economic Stimulus Package (ESP) rebate filers, and the impact of an additional day due to leap year, retail clients served were estimated to be up 3.6 percent and 1.3 percent, respectively, over the prior year.Total reported retail client growth for the March 1 -15 period was 8.2 percent, of which approximately 4.6 percent was related to ESP filers.  On a year-to-date basis through March 15, total reported retail clients grew 3.3 percent of which 1 percent is estimated to be related to ESP filers and 1 percent is due to the additional leap year day.
The reported increase in net average retail fee for the March 1 -15period was 2.3 percent, but would have been approximately 5.8 percent without the impact of ESP filers. On a year-to-date basis, the reported increase in net average retail fee was 5.5 percent and would have been approximately 6.5 percent without ESP.
ESP filers are individuals who would not otherwise be required to file an income tax return, but who are filing in 2008 in order to be eligible to receive rebate checks under the ESP program.  The company is offering special low fees to ESP filers, which affects calculations of average fees. In addition, determination of which clients are ESP filers is also subjective, which affects the precision of retail client growth percentages. The numbers set forth above reflect the company’s best estimate of client growth and average fee adjusted for the impact of one-time ESP filers as well as the impact of leap year.
Digital clients served were down 4 percent in the March 1 -15 period and down 6.5 percent year-to-date through March 15, representing a slight improvement from a decline of 6.8 percent for the year-to-date period ending February 29.
H&R Block plans to release interim results through March 31 for its U.S. tax operations on April 14, 2008 before the NYSE market open.
The predictable next phase of the subprime story.
The “Blame the Auditors” phase of the credit meltdown starts with a New York Times piece criticizing KPMG’s engagement at New Century Financial, which went bankrupt last April. READ MORE →
Is Sarbanes-driven growth over at Big Four firms?
“There are projections for layoffs at several Big Four firms based on the amount of work they’re getting,” said Michael Platt, of Platt Consulting Group. “The East and West coasts would both be hurt (and) we’ll see more junior people laid off. There will be some aggressive offers coming from the next level — the second-tier firms.”
Why the end of busy season spells a new round of dealmaking.
by Rick Telberg
At Large
At one time, you could count on busy season to provide respite from mergers, acquisitions and talent snatches among CPA firms. But not this year.
Robert Fligel (pictured) at RF Resources, the New York-based CPA firm broker and headhunter, reports that, unlike past busy seasons, this busy season is busier than most. “My theory is that it might have something to do with more partners looking at the slowing economy as a time to sell while other forward thinkers are thinking growth by acquisition,” Fligel says. READ MORE →
Allegation: “failed to satisfy the most basic standards of the accounting and auditing profession” READ MORE →
Who says small firms can’t compete for talent with the Big Four?
Dauby O’Connor & Zeleski LLC in Indianapolis is doing some great guerrilla marketing. READ MORE →
