SURVEY RESULTS: Top Tech Trends 2009

CPA firms pursue going paperless and gaining efficiencies.

Accountants and finance managers are looking for more effective workflows and increased productivity as they consider their technology investments this year.

To be sure, some tech spending may have slowed, but there’s little sign of it in our current soundings. And the changes in plans and priorities are showing up as minor from last year to this.

But the big story is in the data emerging that differentiates “leading” firms from “laggard” firms. Those differences will be examined in-depth in an upcoming Aug. 11 webinar with Jean Caragher of Capstone Marketing and made possible by BizActions.

Meanwhile, here’s some preliminary data… Read more

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Posted on July 28, 2009
Filed Under BSG [CPA TRENDLINES] | 1 Comment

Accounting grads up 3.5% to new record

It’s official: The talent shortage is over.

If you’re still having trouble finding qualified recruits, you can’t blame the economy anymore.

The number of students who graduated with accounting degrees in the 2007-08 school year surpassed the previous year’s record level. According to a new report by the American Institute of Certified Public Accountants, more than 66,000 achieved bachelor’s and master’s degrees in accounting, 3.5 percent higher than in 2006-07.

Total grads hits new record

The AICPA:

This represents the largest number of graduates since 1972, the year the AICPA began tracking the data, according to the report, 2009 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits (PDF, 64 pages). The gender ratio is 51 percent female, 49 percent male, a 1 percent uptick in the male cohort.

“The historic growth of accounting degrees is especially significant now because it coincides with the CPA profession’s programs and efforts to attract young talent,” said Jeannie Patton, AICPA vice president – students, academics and membership.  “Students clearly recognize the attractiveness of accounting as a rewarding and fulfilling career path.”

2007-08 enrollments in undergraduate, graduate and doctoral programs achieved a 4.7 percent boost over the previous year, with an aggregate total of 213,000 students.

But where will they find jobs? Hiring demand crashed with the economy.

Total demand slumped to 25,488 recruits in 2008, from 36,112 in 2007.

Total demand slumped to 25,488 recruits in 2008, from 36,112 in 2007.

AICPA:

Although the hiring of new graduates has declined overall as a result of the weakened economy, midsize/large regional firms (50 – 200 CPAs) did report an increase in recruiting new accountants.

As the U.S. capital market system readies for a transition to International Financial Reporting Standards (IFRS), 80 percent of the accounting programs participating in the Trends study reported that they currently offer IFRS material in their curricula, and an additional 15 percent said they will add it by Fall 2009.

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Posted on July 28, 2009
Filed Under BSG [CPA TRENDLINES] | 3 Comments

Ten Do’s and Don’ts for Giving and Taking Feedback

CPAs sound off about performance reviews. Next question: How hard are you working? Join the survey. Get the results.

by Rick Telberg/At Large

I’ve been hearing a lot lately from accountants and finance managers about annual performance reviews - the good, the bad, and the ugly.

After I wrote about why you can’t trust your career to your boss, I received a ton of email with real-life stories and some solid recommendations.

For instance, a CPA in Hunt Valley, Md., wrote, in part:

Your article on performance reviews hits the nail on the head. Unfortunately, performance reviews are nothing more than a political tool for upper-level staff to execute their revenge on staffers under them that they dislike and to push ahead those that they like, regardless of their actual performance. I’m glad to know I’m not the only one who suffers!

And a CPA in Lexington, Ky.: wrote:

I 100% agree that performance should be praised as often as it is criticized. I also agree that performance is not evaluated often enough and should not only be completed at the end of each engagement but during each engagement. The worst thing that can occur is for you to not suggest an improvement to someone and then have them make that mistake a dozen more times before their annual evaluation. That has probably caused many hours of inefficiencies and thousands of dollars. In public accounting – time is money.

However – on the flip side – I think the annual performance evaluation is important to ensure that the person is continuing on their goals. I believe it is each individual person’s role to own their career. These annual evaluations should not necessarily focus on developmental points regarding engagement performance but should focus on how each person is progressing within the firm and what they are doing to move up that ladder. It should have information on what their annual marketing plan is and what they need to do to meet annual goals. It is important to set annual goals and evaluate performance related to those goals.

In my research, I’ve found that half the professionals surveyed say their offices handle performance-related communications well and half don’t. Ouch! Whoever’s doing the feedback could use a little feedback themselves.

It’s clear that a little do-and-don’t advice seems in order for some of the nation’s accounting firms and finance departments.

Dos

  1. Good managers do offer feedback based on facts.
  2. Good managers do offer feedback with a bona fide intent to
    improve performance.
  3. Good managers do offer feedback on issues the employee can control.
  4. Good managers darn well better offer feedback in private.
  5. Good managers do use feedback to reward good behavior and correct the unacceptable.

If the Dos list doesn’t work for you, we have a Don’ts list too:

Don’ts

  1. Good managers don’t let feedback get personal.
  2. Good managers don’t let feedback get generalized beyond the specifics of the problem.
  3. Good managers don’t let the situation get out of hand before they offer corrective feedback.
  4. Good managers don’t give comments on issues the employee
    can’t control.
  5. Good managers don’t make feedback feel like a verbal attack.

Feedback on behavior is more than a management tool. It’s the fundamental way people learn to participate and cooperate in society, and that includes such micro-societies as accounting firms and finance departments.

So, please, do give your feedback some thought, and don’t get it wrong.

NEXT QUESTION: How hard are you working? Join the survey. Get the results.

COMMENT: Questions, ideas, rants or raves? Send an e-mail to Rick Telberg.

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Posted on July 27, 2009
Filed Under BSG [CPA TRENDLINES] | 3 Comments

The saga is just beginning: Block files suit against McGladrey

M&P chief Scudder tells WebCPA: “We’ve always had the right to walk away.”

Scudder

Scudder

“We are disappointed that H&R Block has chosen to pursue litigation,” McGladrey & Pullen managing partner Dave Scudder tells WebCPA. “Under the terms of our shared services agreement, we have every right to terminate that arrangement.”

Earlier:

More from Scudder at WebCPA:

“We’ve always been an independent firm, and there’s no reason we wouldn’t retain those rights going forward.”

“Times are very different from 1999 when we entered into this arrangement to outsource some of the administrative services to them,” he said. He described the decision as a “combination of economic conditions and the overall cost benefits of that agreement, combined with what we think is the opportunity and what’s going on in the marketplace right now.”

“Certainly [it’s] a much more complicated time for our clients, a highly regulated, complex environment for CPAs, and the structure and the services agreement that we have does cause some complexity,” he added. “So when you look at it as a combination, it’s a very simple business decision about looking forward and serving our clients.”

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Posted on July 24, 2009
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‘Light at the end of the tunnel’ for small biz?

Small-business owners remain very concerned with the state of the U.S. economy and the future of their own businesses.

However, the National Small Business Association says it sees “a small flicker of light at the end of the tunnel.”

The reason?

Slightly more respondents than in December — and still a small minority — are anticipating economic growth in the coming 12 months. In December, 64 percent of survey respondents anticipated a recession, whereas today, only 42 percent anticipate a recession in the coming 12 months. While this change in outlook is certainly positive, it may also be reflecting the somewhat dismal position many entrepreneurs find themselves in and the thought that something’s got to give. When asked in July to compare today’s national economy with fi ve years ago, 94 percent responded that the U.S. is worse off, up from 91 percent in December 2008.

I guess anything’s better than “dismal.”

Download the full report (PDF, 9 pages) here.

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Posted on July 23, 2009
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Recession Forces State CPA Societies to Scramble for New Strategies

Looking for Career Help? Start Local

by Rick Telberg

YTuskewich

Yuskewich

As if Matt Yuskewich wasn’t already busy enough running his own nine-person accounting firm, now he’s stepping up to become chairman of his state CPA society at a time when state associations across the country are scrambling to deal with the global financial crisis.

Yuskewish’s first days on the job as 2009-2010 head of the Ohio Society of CPAs provide an inside glimpse into the career of a leading professional, as well as the rapidly shifting career landscape for accountants and finance managers across the country.

Read more

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Posted on July 23, 2009
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Now it’s getting ugly: H&R Block talks tough with McGladrey

How independent are McGladrey & Pullen auditors, really? Can HRB threaten to “transition” the attest work?

HRB warns”M&P’s leaders” their move to break away after 10 years “is fraught with significant business and financial risk and is not in the best interest of M&P partners, employees or clients.” And who, exactly, would HRB replace McGladrey with?

Here’s yesterday story on McGladrey cutting the cord.

Today, here’s the full HRB statement in reply: Read more

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Posted on July 23, 2009
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McGladrey cuts the cord with H&R Block

This could be the official end of “the alternative practice form” era.

Here’s the complete news release:

McGladrey & Pullen announces decision to terminate agreement with H&R Block

Chicago (July 21, 2009)-McGladrey & Pullen LLP today issued formal notice of its intent to terminate its administrative services agreement with H&R Block (NYSE:  HRB).  While McGladrey & Pullen’s audit practice is an independent, partner-owned firm, related professional services have been offered through RSM McGladrey under an agreement with H&R Block since 1999. Read more

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Posted on July 22, 2009
Filed Under BSG [CPA TRENDLINES] | 1 Comment

Study Shows CPA Firms Have Yet to Leverage, Book Benefits of CRM

Unlike other professional services firms, more than 86 percent of CPA firms have yet to integrate a Customer Relationship Management (CRM) program into their organization.

Moreover, less than 3 percent were using CRM solutions that were recently categorized as leaders in the CRM market by Gartner in April 2009. In fact, the third most popular “solution” being used was Microsoft Outlook.

The survey is getting some interest from experts. Read more

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Posted on July 22, 2009
Filed Under BSG [CPA TRENDLINES] | 1 Comment

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