CPA Trendlines

Good News on Your CPA Career

Profession proves to be remarkably recession-resilient.

Are CPAs ready for busy season? Join the survey; get the results.

by Rick Telberg

The jobs picture is decidedly mixed these days for finance and accounting professionals, so when good news comes along it’s worth noting.

Despite the bleak economy, accounting remains relatively recession-resilient as a profession, according to a number of fresh reports.

Money magazine, for instance, ranked CPA careers among the top 10 for “great pay and superior growth prospects.” The magazine narrowed down its top 10 list after examining “more than 7,000 jobs that the Bureau of Labor Statistics projects will grow 10 percent or more over the next decade and that require at least a bachelor’s degree.”

“Businesses began stocking payroll with CPAs after major accounting scandals earlier this decade, and a host of new corporate accounting rules going into effect soon should ratchet up demand further,” Money says. “Government agencies are also hiring CPAs to monitor how well companies are complying with the new regs. Add inevitable changes to personal income tax rules and you have a pretty recession-proof profession.”

The big drawback Money cited? As any CPA knows: “Deadlines are nonnegotiable; if you’re in tax preparation, kiss your personal life goodbye between mid-February and April 15.” Ouch. That’s harsh, but true enough for many.

Separately, the National Association of Colleges and Employers (NACE), which tracks college recruiting, reported that accounting majors hold two of the top 10 spots for in-demand jobs, one listing each for public and private accountants. Add in “financial/treasury analysis” and the finance and accounting sector takes three of the top 10 in the NACE ranking.

The NACE report on accounting careers follows another from NACE showing that hiring may be down seven percent for the graduating class of 2010 and a third NACE report that shows starting salaries in decline.

But for accounting majors, it’s a different story. Accounting salaries are actually up by about one percent, to $48,471, and up two percent, to $49,163, for finance majors.

“Conversely,” NACE said, “business administration and management graduates saw their average offer fall 3.4 percent to $44,607.” Further, the average offer to economics graduates declined 2.8 percent, to $49,628, and management information systems (MIS) grads saw their offers slump 1.8 percent, to $50,573.

Meanwhile, BusinessWeek released its “Best Places to Launch a Career” study, with accounting firms making a strong showing. Deloitte edged out Ernst & Young for the top spot. PricewaterhouseCoopers came in third, followed by KPMG on the entire list. Grant Thornton and RSM MCGladrey also made the list, along with accountant-heavy companies like Protiviti and Accenture.

To be sure, the picture isn’t all pretty. The government reported that the accounting and bookkeeping sector lost about 6,000 jobs last month, erasing some gains in the preceding several months.

But the real test will come in the weeks ahead. Traditionally, accounting firms bring on new staff ahead of busy season. Considering that economists seem ready to pronounce the recession officially over, many accountants could be breathing a sigh of relief.

NEXT QUESTION: Are CPAs Ready for Busy Season? Join the survey; get the answers.

Copyright 2009 AICPA.

Join me at NYSSCPA’s One-Day Practice Management Conference

Wed., Oct. 28, in midtown Manhattan.

I’ll be delivering the luncheon speech, “Seven Keys to Success in CPA Firm Management.”

But the best reason is to go is probably the first panel of the day:

Practice Continuity: A Moderated Panel Session
Moderator: Robert S. Fligel, CPA, Managing Member, RF Resources LLC

Fact: More than 75% of current CPAs will be eligible for retirement in the next 12 years. What will happen to their firms?

Panelists:

• Domenick J. Esposito, CPA Partner, COO, JH Cohn LLP
• Ted Felix, CPA/CFF, DABFA, Principal, New York Metro Area, Parente Randolph LLC
• Glenn L. Friedman, Managing Partner, Metis Group LLC,
• Douglas A. Phillips, CPA, Managing Partner, Weiser LLP
• John R. Repetti, CPA, Partner, COO, President, Graf Repetti & Co.

Details:

Wednesday, October 28, 2009
FAE Conference Center
3 Park Avenue, at 34th Street (19th Floor)
New York, NY 10016
8:30 a.m.–5:00 p.m

Sign up here: CPE Online Registration – Practice Management Conference | NYSSCPA.ORG.

Also on the agenda:

• Strategies for Improving Profitability with Steve Erickson, CPA, — Most firms are facing the challenges of downward client fee pressures, while at the same time trying to control the ever-increasing costs of staffing and running a practice. Mr. Erickson will address the reasons for the current price/cost squeeze and explain how you can immediately improve profitability in your firm.
• How to Create the Firm of the Future…Today! with Stephen Barrett, CPA, CITP, MCP, Director of Information Technology, Held, Kranzler, McCosker & Pulice, LLP — Learn how systems can work together to improve your firm’s processes, and how to work the way you want to work when it comes to structuring technology in your firm. You will walk away with helpful information and important considerations that can guide you to make better decisions on technology investments.

More:

• Everything You Ever Wanted to Know About Social Media But Were Afraid to Ask
• What’s New in Employment Law? with Joel Greenwald, Esq., Managing Partner, Greenwald Doherty, LLP
• Nine Keys to Successful Coaching Programs in Public Accounting Firms with Nancy Fox, President, Fox Coaching Associates

Congratulations and thanks to Philip J. Whitman, CPA, for making this happen. Phil is founder and president of Whitman Business Advisors LLC, a Practice Continuity Consulting Firm specializing in CPA firm practice growth, mergers and acquisitions, and partner search. He is a member of the NYSSCPA and the Chair of its Management of the Profession Oversight Committee, a member of the Large and Medium Firm Practice Management and Chief Financial Officers Committees and is the immediate past chair of the Human Resource Committee.

CCH: Accounting Firms Doing Well Through Economic Slump

But Some Challenges May Still Be Ahead

via CCH

Accounting firms are doing well weathering the effects of the current economic slump, but unfortunately there may still be challenges ahead, even as the economy picks up, according to the findings of an independent nationwide survey of 100 U.S. accounting firms. The survey was conducted by Opinion Research Corporation, and commissioned by CCH, a Wolters Kluwer business (CCHGroup.com).

According to the survey, despite the downturn, firms have been successful overall in maintaining rates, client services and staff productivity as they carefully manage the bottom line.

But even during the recession, firms reported difficulty in finding good staff. And, with the Baby Boomers about to retire in record numbers, a talent crunch looms on the horizon as the opportunity for business growth returns with the economic recovery.

“The accounting profession has performed well in a poor economy, but it should be a wake-up call for many that staffing challenges have persisted through the recession,” said CCH President Mike Sabbatis. “Firms should be considering right now what they need to do to win that talent war as the economy heats up again.”

The Talent Crunch

The good news is that the level of job reductions in accounting firms has been relatively low. Twelve percent of firms surveyed had layoffs, while 18 percent instituted hiring freezes. However, firms highlighted difficulty in finding good staff even in the recession, with 20 percent reporting that they are unable to find people to fill open positions despite record-high unemployment rates.

READ MORE →

Five Tech Trends You Can’t Stop

But some firms are still trying.

by Rick Telberg

Cieslak

If you’re worried about your computer and network security, you’re probably worrying about the wrong things.

But then, if you’re not worried, you’re probably not paying attention.

“For every security concern out there, there are reasonable responses,” according to David Cieslak, CPA.CITP, a partner at Arxis Technology of Simi Valley, Calif., and one of the profession’s leading authorities on technology.  “But CPAs are easily spooked and they sometimes look at the wrong things.”

Like what? Cieslak names five areas where some accounting firms and finance departments may be missing the IT mark, thus depriving themselves of important technology-powered productivity tools and habits.

Here, according to Cieslak, are five of the biggest technology mistakes he sees CPAs making today:

1 — Shunning wireless network connections, or Wi-Fi, even in the office.

Instead of shunning Wi-Fi connections completely, be smart. “Always look for the highest level of security available,” Cieslak says. Wired Equivalent Privacy (WEP) is better than nothing. But he prefers Wi-Fi Protected Access (WPA) or WPA2 (replaced WPA). And if you’re connecting to the office, always use virtual private network (VPN).

But if you’re not using your laptop’s wireless connection turn it off. “Most people don’t realize that unless they turn it off — and it really is a pretty simple switch on most computers — you are still connected to the Internet when you don’t have to be,” Cieslak says.

2 — Blocking social media tools like Facebook, LinkedIn
or Twitter.

Some employers may have valid reasons for worrying that employees will be distracted by online interruptions. But Cieslak says, “There is no reason to block Facebook or any of the other leading sites because of IT security concerns.”

For professionals like CPAs, Cieslak says Facebook, Twitter and LinkedIn are now too important to ignore completely and they should be available in most workplaces. So instead of trying to stand against the tide, companies need to talk about social media in the workplace, establish a few smart and simple policies and integrate the technology into everyday practices.

For instance, employees need to understand that if anyone invites you to join their “Mafia family,” just don’t. Any Web site that asks for your username and password should be highly suspect. Malware like the so-called Mafia family game can steal your contacts and broadcast bogus invitations in your name.

3 — Banning instant messaging applications from
the workplace.

Another losing battle for employers is instant messaging. IM has been around for almost two decades now, since AOL popularized it. Today Microsoft, Google and Yahoo provide popular IM messenger apps. “Instant messaging is such a critical tool for me,” Cieslak says, “that I can’t believe everyone isn’t using it every day.” For Cieslak, IM has replaced a lot of internal e-mails. Still, he doesn’t use it with clients. “For that, I want a little more formal contact,” he says.

4 — Holding back on Smartphone deployments and then using the devices carelessly.

The first mistake many accountants and accounting firms make, Cieslak says, is simply failing to embrace devices like a BlackBerry or an iPhone and deploy them to as many professionals on staff as possible.

But second, he finds that too many people are using them too carelessly. For instance, people shouldn’t store confidential information like all their contacts, Social Security numbers or passwords on their cell phones. And, because they too often do, owners need to be able to deactivate them and wipe the data remotely. That’s one reason why firms and companies should want to issue employer-owned devices. In the event of loss or theft (or the untimely departure of an employee), confidential information can be protected with software that is now so inexpensive and easy that even families should
consider it.

5 — Ignoring portable media.

Like cell phones, portable media of any type can be hazardous to your IT health. Universal Serial Bus (USB) drives, secure digital (SD) cards or laptop computers are being used by office workers to transport files and information from one office to another or home for the weekend. In the event of loss, the results can be disastrous. That’s why every accounting office should consider, instead, supplying their own devices and banning the use of all others. “It’s not expensive,” Cieslak
says, “and we can make sure the data is encrypted
and authenticated.”

By the same token, laptop’s hard drives, if not individual files or folders, should be routinely encrypted. It’s about as simple as clicking a button on a setting menu and even easier in the forthcoming Windows 7.

To be sure, IT security is a legitimate concern, as CPAs well know. But, according to Cieslak, cutting yourself off from innovation is the wrong way to go.

Good habits, such as updating your software, maintaining tough passwords and keeping track of hardware, are much more important.

Copyright 2009 AICPA. Used by pemission.

NEW SURVEY: What’s on Your CPE Agenda?

If it’s after Oct. 15, then it’s now CPE season.

We’re launching a new survey to gather the profession’s plans for continuing professional education this year.

Join the survey and be the first to get the answers to:

• Today’s hottest CPE topics and subjects.
• Trends in online, self-study, live seminar.
• What CPAs REALLY wish their CPE was all about.

Click here to join the survey; get the results. Or just add your comments below. The best comments may win a special preview of the survey findings.

Oklahoma CPAs Start Voting Today on Non-CPA Ownership

You might have thought this was settled in the 1990′s.

But Oklahoma remains one of six states left in the U.S. that still (technically, at least) bans non-CPAs from owning a piece of a CPA firm.

Today the Oklahoma society of CPAs will be emailing a survey to members to see if they want to bring their state’s rules into the mainstream. In a straw poll of directors and committee chairs, 40 out of 45 voted in favor of lifting the ban.

Under the proposed change:

• A majority of the ownership of any CPA firm must be CPAs.
• Non-CPA owners must be active participants in the firm; passive ownership is not permitted.
• A licensed CPA must be designated and identified to the state board as the individual responsible for registration of the firm.
• The partner/owner in charge of attest services must be a licensed CPA.

The state society says small to mid-sized firms will benefit from the change because it will allow them to “increase the scope of services to their clients” and “offer attractive partnership positions to non-CPA specialists in areas such as information technology or estate planning.”

But it’s always been the small and mid-sized firms who have traditionally opposed opening up CPA firms to non-CPAs, fearing larger firms were more able to take advantage of the strategy.

Only Alaska, Hawaii, New York, Connecticut and Delaware remain in Oklahoma’s camp.

Source: OSCPA

What Clients Wish You Already Knew

Are you listening?

by Rick Telberg

Shhh! Can you hear that? It’s the sound of your clients trying to tell you what they’d really like from you.

I’ve been asking corporate accountants, bookkeepers, finance executives and managers how much they like (or don’t like) their current accounting firms. And the results could be a wake-up call for many accounting firms.

Last week, in What’s the ‘Secret Sauce’ for Success?, we heard from accountants who had recently landed new clients for their winning recipes.  This week, we’re looking at the question of client satisfaction from the other side, the client side.

Changing accounting firms, of course, is horrendously difficult for companies. So they avoid it as much as possible. But I’m hearing a disconcerting amount of disappointment with the quality of service they
are receiving.

To be sure, few finance managers are concerned about the accuracy, integrity, objectivity or competence of their CPAs. The problem isn’t in the accounting. It’s in the delivery.

Certainly, there are clients like Chris Hartrich at Northbrook, Ill.–based Omeda Communications. He is wildly happy with his company’s new CPA firm, “much more so than our prior firm.” He hails the new firm as “very responsive” and loves their “timely service.”

Like many corporate clients, Hartrich wanted a firm that could provide “attentive, cost effective, proactive service.” But they also needed to “understand the business issues and bring best-practice suggestions to address them.”

Still, some finance managers in corporations, government, not-for-profits and educational institutions are telling me that they would be “highly likely” to recommend their current accounting firm to an interested friend or colleague. So if you listen intently to the finance managers who fall into the less than “highly likely” to recommend category, you may be able to learn even more about what it takes to retain and satisfy a customer these days.

Take, for instance, a senior finance manager at a mid-sized business in Germantown, Md. She is looking for a “proactive, accurate partner who offers a wide range of services and knows the industry and business model.” If you want this account, you’d better be positioned “low-cost on bread-and-butter services” and “save the higher fees for specialized value-
added services.”

Another corporate CPA simply expects “good service, advice and a fair price,” which sounds pretty basic. But too often he sees firms falling short in “really understanding the client’s perspective.”

“Get the job done, on time and on budget,” says a senior staffer at a Fortune 1000 company. And who could argue with that?

Another corporate finance executive wants a “better attitude from the CPA.” He feels as though his company’s accounting firm is more of an adversary than a friendly advisor. “We are not the enemy.”

Copyright 2009 AICPA.