Oops! Personal file note makes it into annual financial statements

Who Said Creative Accounting Is Dead?

Barry Ritholz reports:

It appears that NZ Farming (NZX) ran into a little trouble with the regulators when they accidentally included the suggestion of “fudging depreciation” in their account statement:

Note: The Company responds here: Read more

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Posted on August 31, 2009
Filed Under BSG [CPA TRENDLINES] | 1 Comment

Accountant ‘Prestige’ Drops by 4 Points in Harris Poll

Firefighters, Scientists and Doctors Seen as Most ‘Prestigious’ Occupations.

via Harris Interactive

ROCHESTER, N.Y. – Every year a this time, The Harris Poll asks whether an occupation can be considered to have very great prestige or hardly any prestige at all. This year there are some changes as well as some stability in what occupations are considered prestigious and what ones are not. These are some of the results of a nationwide telephone survey conducted by Harris Interactive among 1,010 U.S. adults between July 8 and 13, 2008.

Most Prestigious Occupations

The occupations at the top of the list are:

Least Prestigious Occupations

Looking at the other side of the list, only 15% or fewer adults regard the following occupations as having very great prestige:

Substantial majorities of adults (from 65% to 80%) believe that these occupations have “hardly any” or only “some” prestige. Additionally, several occupations are regarded as “very prestigious” by more people this year than they were last year:

However, even with this improvement, business executives are still near the bottom of the list with 62% of Americans saying they have only some prestige or hardly any prestige at all. Two occupations lost four or more points since last year:

Biggest Changes over Last 30 Years

The Harris Poll first asked this question, but with a shorter list of occupations, in 1977. The biggest change since then has been a 22 point increase from 29% to 51% in those who believe teachers have very great prestige. Two occupations have lost substantial ground since 1977: scientists, down 9 points to 57% and lawyers, down 10 points to 26%. In addition, two have remained unchanged – priests/ministers/clergy at 41% and journalists at 17%. Also, two have remained very stable – entertainers, down 1 point to 17%; and bankers, down 1 point to 16%.

So What?

While some of the numbers may fluctuate from year to year, one thing remains constant, especially in the past two decades. The professions that are at the top of the list and considered to have very great prestige are ones that are not considered to be high-paying jobs – firefighters, nurses and teachers. The ones at the bottom are ones that may have a lot of fame attached to them – athletes, actors, entertainers – or are ones that have the potential to earn large salaries – business executives, stockbrokers, real estate agents. People do not equate money and fame with prestige. These are two completely separate concepts to the American public.

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Posted on August 29, 2009
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12 Things that Should NOT Be on Your Partner Retreat Agenda

And 12 things that should.

by August Aquila

August J. Aquila is the CEO of AQUILA Global Advisors, a full-service consulting firm for CPAs and professional services firms. August is a frequent retreat facilitator. He can be reached at aaquila@aquilaadvisors.com or 952-930.1295. (www.aquilaadvisors.com)

The purpose of the retreat should be clearly thought out early in the year. Articulate one or two goals for the retreat. You need to be very specific as to what you want to accomplish. For example, the purpose of the retreat is to develop a succession plan for the firm. You many not know exactly what it will look like, but you know what the end product of the retreat will be.

If you cannot do this, don’t hold the meeting. Ask yourself this one question: “What would happen if we did not hold this retreat?” If the answer is “nothing,” you’ll know what to do.

Retreat Topics

Let’s look at common retreat topics that should not be discussed at a retreat. You may or not agree with the list, but I urge you to strike the following items from your retreat agendas.

1. Partner compensation allocation (but not creating a new compensation program)

2. Staff compensation/benefits

3. Staff recruiting

4. New partner admittance

5. Role of the firm administrator

6. Evaluation of partners/personnel issues

7. Setting up next year’s budget

8. Discussion of the firm’s marketing plan

9. Analysis of financial results

10. Billing and collections issues

11. Quality control

12. Time and stress management

While you will find these items on most pre-retreat questionnaires, it does not mean you need to address them at your retreat. They are better served being addressed at monthly or quarterly owners’ meetings. You don’t need to go off site and incur both out of pocket and opportunity costs just to discuss these items.

If you are not going to discuss these items at the retreat, then what should you discuss? Address critical business issues that are seldom discussed throughout the year. Here’s a short list of questions to consider for your pre-retreat questionnaire:

1. What is the number one issue facing the firm’s long-term survival?

2. How do we need to change to overcome this issue?

3. Which business critical processes do we need to improve?

4. How should we improve them?

5. What do we need to do to remain a growth and learning organization?

6. How should we change the way we produce our work product to improve client satisfaction?

7. What has been the number one reason for our success?

8. Will it hold true in the near or distant future?

9. What concerns or questions do you have about the firm’s succession plan?

10. For senior partners only: What are your primary concerns? (Funding retirement, selling the firm, etc.). Senior partners have different concerns from younger partners

11. For junior partners only: What are your primary concerns? (E.g., how large would they like to see the firm become? What should the future ownership of the firm look like? How will the firm pay retirement benefits?)

12. What are your views on mergers, acquisitions, and consolidators?

Send the retreat questionnaire well in advance of the retreat. This gives owners sufficient time to think about the issue and provides management the necessary time to select the most important topic.

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Posted on August 27, 2009
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SURVEY RESULTS: Accounting Firm Marketing Strategies

Biz dev takes center stage.

Both because of and despite the business downturn, tax and accounting firms are maintaining and even increasing their marketing and business development activities, according to topline findings from a new CPA Trendlines survey by Bay Street Group LLC for the AICPA. Join the survey; get the results as they develop.

A surprising number of accounting firms are maintaining their marketing efforts, despite the business downturn:
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And an even more surprising number are planning to accelerate marketing expenditures in the upcoming months:
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The top strategy remain referrals and networking, but the networking is moving online with a discernible emphasis on social media:
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Join the survey; get the results as they develop.

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Posted on August 26, 2009
Filed Under BSG [CPA TRENDLINES] | 7 Comments

Intuit Launches SaaS-based Tax Prep Product “ProLine”

ProLine Tax Online Edition Available to Tax Professionals in Early September

Tax professionals can sign up in advance at http://accountant.intuit.com/pto to receive an alert when the program officially begins. Pricing: Free, for now.

via Intuit:

MOUNTAIN VIEW, Calif. and ROSEMONT, Ill. – Aug. 26, 2009 – Intuit Inc. (Nasdaq: INTU) announced its new ProLineTM Tax Online Edition, a program for tax professionals that is free for a limited time. ProLine Tax Online is an innovative, Software-as-a-Service tax solution designed to help professionals quickly and easily prepare and file federal and state tax returns.

The company announced the free program at the 29th Annual Midwest Accounting & Finance Showcase in suburban Chicago.

Starting today, tax professionals can register at http://accountant.intuit.com/pto to use the product when it is scheduled for release in early September. During the free trial period, tax professionals can experience how easy and fast it is to file federal and California and Arizona tax forms with ProLine Tax Online. Subsequent versions will include additional federal forms, expanded states, and other features that reinvent the way accounting professionals prepare and file taxes.

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Posted on August 26, 2009
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NEW WEBINARS: Marketing and Client Satisfaction

Take a Deep Dive into the Latest Research on “The Seven Keys to Success in CPA Firm Management.”

Because you’re a CPA Trendlines reader, I thought you’d like to know about two upcoming marketing and practice development webinars.

Buy Now at the BSG Store

Buy Now at the BSG Store

Working with my colleague Jean Caragher of Capstone Marketing, we will reveal the findings of new research into how CPA firms are surviving-even thriving-with smart business development strategies. We’ll reveal, based on our own empirical research, what’s working and what’s not. And Jean will share her sure-fire strategies for success.

As a participant, you’ve probably already seen the topline results of our research here and here. But if you’re serious about marketing and business development at your accounting firm, please don’t spend another dime on marketing strategy until you’ve benchmarked it with us.

Who should attend:

Marketing and Business Development:  What’s Working in Today’s Economy?
Webinar:  Wednesday, Sept. 16, 1-2 p.m. Eastern Time – Buy Now: Only $79.00

What you’ll learn:

Client Satisfaction and Service: How to Retain Clients and Grow Revenue in a Recession
Webinar:  Wednesday, Oct.  7, 1-2 p.m. Eastern Time — Buy Now: Only $79.00

What you’ll learn:

But here’s an even better deal…

BUY BOTH WEBINARS TODAY AND SAVE 20% — Sign up for BOTH “Marketing and Business Development” on Sept. 16 AND “Client Satisfaction” on Oct. 7 and SAVE 20%. Buy Now: Only $125.

I’m sure you’ll find the sessions useful and interesting.

Yours truly,
Rick Telberg

P.S.: After signing up, watch your email for additional materials and reminders. Of course, if you have any questions or requests before the webinars, please don’t hesitate to contact me personally at rtelberg@baystreetgroup.com or by phone at (914) 674-4531. Note: CPE is not available for these sessions.

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Posted on August 25, 2009
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Five Ways How NOT to Implement a System of Partner Accountability

And seven ways to build the right culture.

http://billsnewsletterblog.files.wordpress.com/2009/05/aquila-2.jpg

Aquila

August Aquila, a veteran practice management consultant, thinks deeply and works broadly with CPA firms on leadership and management issues. If you’re thinking about the quality of leadership at your firm, think on this:

Five WRONG ways to make partners more accountable:

  1. Let’s make it into a checklist. One thing you can count on – accountants love checklists. It seems that a checklist is the answer to all our problems.
  2. Just create a list of obligations. If we just outline what people have to do, they will do it. Don’t we wish it could be that simple? What about individual determination and will to change?
  3. Capture more production information. This trap assumes that accountability is all about production – charge and billable hours, realization, book of business, etc. The way to make people accountable is by having more reports.
  4. Tinker with the compensation formula. This will surely change behavior, won’t it? All we have to do is threaten some of the partners. This thinking implies that paying more or less to individual partners will make them accountable.
  5. No clear framework. Builders know that you can’t construct a strong building unless you have a solid foundation and framework. The same applies to accounting firm. If the firm has no vision, mission, standards of performance, performance management system, structure, policies or systems, how can it expect to have a culture of accountability?

Each one of these traps ignores the real meaning of accountability – “the obligation to accept responsibility or to account for one’s actions.”

What does culture have to do with it?

Read more

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Posted on August 25, 2009
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How do you sopend your time?

The folks at Intuit have done a study.

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Posted on August 25, 2009
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Six Rules for CPA Firms in the New Economy

What’s working today in CPA firm growth strategies? Join the survey; get the answers.

by Rick Telberg

The recession may or may not be officially ending, but savvy CPAs and accounting firms aren’t planning for a return to “the good old days.”

Instead, smart accountants are retooling their skills and overhauling their offices for the next new economy. At General Electric, for instance, Jeff Immelt, the CEO who was once GE’s CFO and an accounting standards wonk, is calling it “the reset economy.” Some, like Intuit CEO Brad Smith, prefer to call it the “new normal.”

Whatever you call it, you can’t just cut costs, lay off people and expect a routine “post-recession” comeback. This new economic picture may be much different than any in a lifetime.

What’s working today in CPA firm growth strategies?

Join the survey; get the answers.

(Free. Confidential)

“It’s not just about cost-cutting” according to Mike Ramos, CPA and author of the first book in a new AICPA “Practice Forward ” series, Ride the Bear: Strategies for CPA Firms to Thrive, Survive, and Grow in a Down Economy (Ride the Bear). Ramos, a consultant to CPA firms, has written nine books, most recently the AICPA Audit Guide, Assessing and Responding to Audit Risk in a Financial Statement Audit, an authoritative interpretation of the risk assessment standards.

Read more

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Posted on August 24, 2009
Filed Under BSG [CPA TRENDLINES] | 2 Comments

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