Archive for the ‘Partner topics’ Category

Friday, April 28th, 2017

“For happiness one needs security, but joy can spring like a flower even from the cliffs of despair.” – Anne Morrow Lindbergh

Because of all the concerns about cybersecurity and the opportunity that it provides for CPAs to provide cybersecurity-related assurance services, I wanted to share a press release from the AICPA this week.

AICPA Unveils Cybersecurity Risk Management Reporting Framework

Voluntary Engagement Will Help Companies and Auditors Communicate Cyber Risk Readiness

NEW YORK (April 26, 2017) – At a time when organizations around the world are facing cybersecurity attacks, it is more important than ever for them to demonstrate to key stakeholders the extent and effectiveness of their cybersecurity risk management efforts. To help businesses meet this growing challenge, the American Institute of CPAs (AICPA) has introduced a market-driven, flexible and voluntary cybersecurity risk management reporting framework.

“Cybersecurity threats are escalating, thereby unnerving boards of directors, managers, investors and customers of businesses of all sizes – whether public or private,” said Susan S. Coffey, CPA, CGMA, AICPA executive vice president for public practice. “While there are many methods, controls and frameworks for developing cybersecurity risk management programs, until now there hasn’t been a common language for companies to communicate about, and report on, these efforts.”

The AICPA’s new framework will enable all organizations – in industries worldwide – to take a proactive and agile approach to cybersecurity risk management and to communicate on those activities with stakeholders. Two resources that support reporting under the framework are being released today:

  • Description criteria – For use by management in explaining its cybersecurity risk management program in a consistent manner and for use by CPAs to report on management’s description.
  • Control criteria – Used by CPAs providing advisory or attestation services to evaluate and report on the effectiveness of the controls within a client’s program.

A third resource for CPAs will be available in May:

  • Attest guide – This guidance, Reporting on an Entity’s Cybersecurity Risk Management Program and Controls, will be published next month to assist CPAs engaged to examine and report on an entity’s cybersecurity risk management program.

Building on CPAs’ experience in auditing information technology controls, the AICPA’s Assurance Services Executive Committee identified the emerging need for cybersecurity-related assurance services. The goal was to enable companies to more effectively communicate the robustness of their cybersecurity risk management programs to key stakeholders.

“The framework we have developed will serve as a critical step to enabling a consistent, market-based mechanism for companies worldwide to explain how they’re managing cybersecurity risk,” Coffey explained. “We believe investors, boards, audit committees and business partners will see tremendous value in gaining a better understanding of organizations’ cybersecurity risk management efforts. That information, combined with the CPA’s opinion on the effectiveness of management’s efforts, will increase stakeholders’ confidence in organizations’ due care and diligence in managing cybersecurity risk.”

For more information and links to valuable resources for CPAs providing cybersecurity advisory and assurance services, visit our Cybersecurity Resource Center.

  • Man maintains his balance, poise, and sense of security only as he is moving forward.
  • Maxwell Maltz

Thursday, April 27th, 2017

Interesting Topics From The New Horizon Group Meeting

marc-rosenberg-2017“When you are in the news business, you always expect the unexpected.” – Helen Thomas

Earlier this month, I blogged about attending the New Horizon Group of CPA firm consultants’ annual meeting. It was held at the AICPA offices in New York.

This year I attended virtually (and it worked really well). Members are: Jim Bourke, Gale Crosley, Chris Frederiksen, Carl George, Angie Grissom, Rita Keller, Roman Kepczyk, Allan Koltin, Mark Koziel, Rob Nixon, Darren Root, Marc Rosenberg and Jennifer Wilson. Barry Melancon graciously gave us a briefing.

This week, Marc Rosenberg blogged about some “pearls of wisdom” obtained from that meeting. Be sure to read Rosenberg’s post here. Some significant changes are unfolding.

  • In the case of news, we should always wait for the sacrament of confirmation.
  • Voltaire

Tuesday, April 18th, 2017

What Will You Do Next Week?

“The mind should be allowed some relaxation, that it may return to its work all the better for the rest.” – Seneca

It’s here. Tax day 2017. After today it will be officially over for a while.

What will you do next? I’m sure many of you will take a few days off. Some will take more than a few days off. Then what?

I repeat my message every year around this time….. don’t wait on focusing more intensely on issues that need to be addressed at your firm.

I used to joke and say that most CPAs go into a coma-like trance for about three weeks basically doing nothing and then they take a week’s vacation claiming they must “recover” from tax season.

Go ahead, recover but you better make it quick. Times are changing, technology is changing, the workforce is changing, firms are changing and the profession is changing. Don’t wait until June or July to tackle firm initiatives. Make a list of high priority items and begin NO LATER than May 1.

If retaining top talent is an initiative for your firm, please don’t procrastinate on giving them feedback. Some firms put off the official feedback meetings until fall. Something else is always more important.

If you haven’t identified your firm’s most pressing initiatives, get your retreat scheduled quickly – have your retreat in July rather than November!

For tomorrow and maybe even the rest of this week, put all of this out of your mind. Then next week take action.

  • It is necessary to relax your muscles when you can. Relaxing your brain is fatal.
  • Sterling Moss

Tuesday, April 11th, 2017

Retire or Get Retired?

“If people concentrated on the really important things in life, there’d be a shortage of fishing poles.” – Doug Larson

I recently read an interview with actor Christopher Walken. He is 73.

He talked about taking any acting job that came his way these days because he is aging and not that many do come his way. As an actor, any job can be your last job.

It made me think of the many aging CPAs working in firms right now. As the baby boomers age, more and more are over the age of 65 and I encounter quite a few who are 70 – or nearing that age.

I also realize that many younger CPAs in these firms really want the older partners to retire. They are thinking the older partners should play the retirement card – just do it! Eventually, some will be forced out. Sure, it might be gently or it might not.

I don’t personally feel that partners should be forced out just because of age. It should be based on how productive they are and what contributions they make to the success of the firm. I continually hear of partners in their 40s and 50s who are NOT productive and don’t really contribute that much to the success of the firm.

However, if you are a more senior partner, is it time? Do you feel the unverbalized pressure? Wouldn’t you rather retire than “get retired”?

  • There's never enough time to do all the nothing you want.
  • Bill Watterson

Friday, April 7th, 2017

Pay Attention!

“It’s not what you look at that matters; it’s what you see.” – Henry David Thoreau

Often, blamed on being too busy, you don’t often actually see things, people, opportunities, and even dangers.

Are you too distracted to see the things happening around you? Do you really see your family? Do you really see and understand the challenges of your newest team members?

I urge you, as a firm leader, to be alert to a top performer who is slowly becoming NOT a top performer, a loyal manager who seems more distant, a partner who seems to be jogging in place or a family member who is often too silent.

Make it a practice to not just look at people, opportunities and yourself but to keep your eyes and senses open to what might be going on at a deeper level.

  • Whether you call it Buddhism or another religion, self-discipline, that's important. Self-discipline with awareness of consequences.
  • Dalai Lama

Thursday, April 6th, 2017

IMPORTANT TOPIC: Can What You Are Doing Be Done By Artificial Intelligence?

“Some people worry that artificial intelligence will make us feel inferior, but the, anybody in his right mind should have an inferiority complex every time he looks at a flower.” – Alan Kay

PLEASE, please read this great blog post by Seth Godin. Here’s the closing paragraph:

The question each of us has to ask is simple (but difficult): What can I become quite good at that’s really difficult for a computer to do one day soon? How can I become so resilient, so human and such a linchpin that shifts in technology won’t be able to catch up?

It was always important, but now it’s urgent.

So much of what accountants do can and will eventually be done by AI. Think about how it has already happened inside your firm. A simple exmple, we used to turn in an expense report – now an app does that for us – and so on.

In the world of blockchain, things will happen without your involvement. How will that play into the future of your firm? You must keep current and keep ahead of the curve. The things that happen might change how you do things but it doesn’t have to make you obsolete – there will be new and different opportunities for progressive firms.

  • It's going to be interesting to see how society deals with artificial intelligence, but it will definitely be cool.
  • Colin Angle

Tuesday, April 4th, 2017

Blockchain

“The aim of argument, or of discussion, should not be victory, but progress.” – Joseph Joubert

Rarely do I miss a day posting on this blog. However, yesterday was one of those days and I apologize – BUT I had a great reason. I was attending (virtually) the annual New Horizon Group of consultants to the CPA profession meeting. The meeting was held at the AICPA offices in NYC, hosted by Mark Koziel. The co-chairs of this years meeting were Carl George and Jennifer Wilson.

Other members (who I am so honored to be affiliated with) are: Roman Kepczyk, Allan Koltin, Gale Crosley, Angie Grissom, Jim Bourke, Chris Frederiksen, Rob Nixon, Darren Root and Marc Rosenberg.

An important discussion topic was Blockchain and how it will affect the future of auditing. Honestly, it sounds like it will affect the future of many things.

My point today is for you, as a CPA practitioner or non-CPA in a firm leadership position, to take the time to learn about blockchain. I must admit, I didn’t have a clear understanding of it until yesterday.

Below, I am furnishing you a link to a great article (via Accounting Today) that will help you learn more about blockchain. It is critical for you to educate yourself and your team – it is a huge change and it is coming about quickly – you can’t wait and think it is something to worry about 10 years from now.

Blockchain is defined as an open, distributed ledger, blockchain technology records and verifies transactions without any trusted central authority.  Read more…..

  • Frequently the more trifling the subject, the more animated and protracted the discussion.
  • Franklin Pierce

Friday, March 31st, 2017

A Simple Message for CPA Firm Leaders

“It is not fair to ask of others what you are unwilling to do yourself.” – Eleanor Roosevelt

Here is Seth Godin’s blog post from yesterday:

All we have to do is be the person we say we are

No need to shop for a better you, or to work overtime to make bigger promises.

Keeping the promises we’ve already made is sufficient.

It is a clear, simple, meaningful message. It applies to all levels of people inside an accounting firm.

I think it is especially meaningful for CPA firm partners.  There are many partners who make promises to the team fully intending to keep those promises. Then life unfolds, things get busy, fulfilling the promise becomes more difficult than expected and it is soon put on the back burner.

Sometimes it is something very simple… “I’ll take you along the next time I have a meeting with Big Jones Client.” Then it doesn’t happen.

Sometimes it is something very important… “We are going to revamp our performance feedback process to make it more timely and more meaningful.” Then is doesn’t happen.

When I ask a room full of CPA firm team members, “Who is it at your firm that does not follow the processes and procedures?” The answer is always the same, “The partners!”

I really like one item from a sample Partner Commitment Statement furnished by Sam Allred of Upstream Academy:

“I will do what I say I will do, on time, without reminders.”

  • Don't worry that children never listen to you; worry that they are always watching you.
  • Robert Fulghum

Tuesday, March 28th, 2017

Silence Is Often Not Golden

“Organizations are destroyed by behaviors that should be confronted but are condoned by silence.” – Dan Rockwell @leadershipfreak

I have often operated by that old phrase, “Silence Is Golden”. There were just times when it was very appropriate, in my opinion, to say nothing. For instance, when someone was very angry.

I have also often operated by another old phrase, “If you don’t have anything nice to say, don’t say anything at all”.  That advice came from my mother and maybe from Thumper.

Communication is a difficult subject and a constant struggle inside many busy accounting firms.

However, never forget – You owe people feedback. You owe your partners feedback. You even owe your bosses feedback.

You should be comfortable speaking up immediately when you notice someone doing something wrong. Many “bosses” in CPA firms seem to have missed this message.

  • A partner notices that Judy is not following firm procedures, yet the partner saves up constructive feedback until there is a performance evaluation meeting or exercise.
  • Joe is new and struggling with some tax preparation issues. The manager is aware but is silent and instead writes 57 review notes.
  • Most of the partners notice “things” that should be addressed with a staff person or an admin team member and rather than address it on the spot, they ask the firm administrator… “Can you talk to Sally?”
  • Ted, tax partner, is what we call a “wild card”. The partners are even concerned about how he might be advising clients. Nothing is said.

Yes, you can bring a lot of negativity into the work place by saying too much, talking too much and whining too much. However, there are many times when inappropriate behaviors need to be addressed.

 

 

  • Everything becomes a little different as soon as it is spoken out loud.
  • Hermann Hesse

Wednesday, March 15th, 2017

2017 Accounting Today Top 100 Firms

Dan Hood, Accounting Today

Dan Hood, Accounting Today

“There are lies, damned lies and statistics.” – Mark Twain

Those of us working in, or affiliated with, the world of public accounting are always interested in the performance of CPA firms across the country. What are they doing that we could do? How do their numbers look compared to ours? What new trends should we be aware of?

That’s why I wanted to share a link to a podcast from Dan Hood, Editor In Chief of Accounting Today. Their annual ranking of leading firms in the profession offers up a host of insights and secrets; in this podcast, Hood shares some of the most interesting, such as, over-all growth in revenue was 8.8%

If you don’t have time, right now, to listen to the entire 13 minute podcast, bookmark this page and take time over the weekend (or after mid-April) to listen and learn.

Here a link to the podcast, A Deep Dive Into The Top 100 Firms.

  • It is the mark of a truly intelligent person to be moved by statistics.
  • George Bernard Shaw