Archive for the ‘News’ Category

Thursday, June 21st, 2018

Disruption of the Profession

“The difficulty lies not so much in developing new ideas as in escaping from old ones.” – John Maynard Keynes

Last week, Daniel Hood, Editor-in-Chief of Accounting Today, wrote a great article covering a presentation by Mark Koziel, of the AICPA, at the recent ENGAGE conference in Las Vegas.

Koziel noted that technology is taking us out of our comfort zone. “We as a profession can’t wait for regulation to disrupt us, we need to disrupt ourselves,” he said. “We’re going to take our expertise and interact with our clients in new and different ways.”

Here’s an excerpt:

Among the most important ways the profession will need to change will be to move up from services and activities that rapidly being automated. “Technology could automate 49 percent of current activities,” he warned. “Data processing and bookkeeping have a higher percentage chance of being automated, versus managing others and applying expertise – and that’s what CPAs do: We apply expertise. That’s less likely to be automated. Analyzing and interpreting data is where it’s at – not the low end of data entry,” he added.

Read the entire article here and share it with your partners and team members.

  • The key to success and change management is learning, then unlearning, and then relearning.
  • Mark Koziel, AICPA

Wednesday, June 20th, 2018

It’s Easy To Understand Blockchain

“Wisdom is not a product of schooling but of the lifelong attempt to acquire it.” – Albert Einstein

I came across this great explanation of Blockchain. It is a Reuters visual guide. It makes it all very understandable!

Please give it a look. It is important that you share it with all your staff.

  • If you want the answer, ask the question.
  • Lorii Myers

Wednesday, June 13th, 2018

Changes To The CPA Exam

“In the middle of every difficulty lies opportunity.” – Albert Einstein

The Journal of Accountancy has a podcast titled, How Tax Reform – and Excel – Are Changing The CPA Exam. It is hosted by Chris Baysden of the AICPA.

Tax reform will have an important impact on many aspects of the accounting profession — including the CPA Exam. In this week’s episode of the podcast, we talked to Mike Decker, the vice president of examinations at the AICPA, about the changes being made to the exam as a result of tax reform — and about how Excel will now be available for use on the test.

What you’ll learn in this episode:

  • How the AICPA’s exams team has gone about collecting feedback on the exam.
  • Why continuous testing could be on the horizon.
  • The timeline for implementing changes due to tax reform.
  • How and why a practice analysis will be initiated.
  • The changes that test takers will see to monitors and software used in the exam.

Here’s a link to the podcast (it’s only 11 minutes long). You need to know so you can advise and encourage the young accountants in your firm to take the Exam and get it behind them!

  • Nothing happens until something moves.
  • Albert Einstein

Monday, June 11th, 2018

Technology Surprises

“Wait long enough, and people will surprise and impress you.” – Randy Pausch

Roman Kepczyk, CPA, CITP via the CPA Firm Management Association (CPAFMA.org) has conducted the 2018 IT Survey to identify information technology trends in the medium and larger CPA firms representative of their membership. Many technology trends begin in medium and larger firms where their worth is proven and eventually flow through to smaller firms after adoption and best practices have been standardized.

The Top 10 Accounting Firm IT Survey Surprises has been published by CPA Practice Advisor.

The No. 1 “surprise” is very interesting:

The most significant change in the CPAFMA IT survey over the past two years was the transition from internally managed Exchange/Outlook servers to utilizing external, cloud-based solutions. While 68% of firms hosted their own Exchange Servers in 2016, this number was cut by more than half in 2018 to 30%. With 70% of participating firms utilizing an external email/groupware solution, this is a trend that every firm should be evaluating before buying new or updating their existing Exchange servers.

Follow the link, above, to read the other nine surprises.

  • Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.
  • George S. Patton

Thursday, June 7th, 2018

Important Survey

“We are drowning in information but starved for knowledge.” – John Naisbitt

My friends at ConvergenceCoaching®, LLC, are committed to helping firms succeed through the adoption of NextGen strategies, including flex. They are seeking participants in their Anytime, Anywhere Work™ Survey 2018.

The goal of this survey is to collect data on the adoption of flexible work programs (Anytime, Anywhere Work™ programs) by public accounting firms and the experiences firms have had with these initiatives.

Follow the link to find out more and please consider participating in the survey. The survey is open through June 15. By participating you will receive a copy of the survey results.

  • It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts.
  • Arthur Conan Doyle

Wednesday, May 16th, 2018

Participate In The Rosenberg Survey

“Knowledge is power.” – Francis Bacon
I eagerly look forward to the release of the Rosenberg Survey each year. I use it extensively in my consulting work. Now is the time for your firm to fill out the survey and participate.
Here’s the information to that you can take part:
THE ROSENBERG SURVEY – SURVEY NOW OPEN
For two decades, The Rosenberg Survey has provided accounting firms with key benchmark statistics.
Did you know?
The Elite Firms from our 2017 survey (firms with income per partner > $500k) had the following metrics:
  • Ratio of staff to equity partner – 8.6 (vs. an average of 5.1 for firms with fees between $2-10 million)
  • Net fees per equity partner – $2,180,000 (vs. an average of $1.2 million for firms with fees between $2-10 million)
  • Charge hours for professional staff – 1,510 (vs. an average of 1,492 for firms with fees between $2-10 million)
Why is The Rosenberg Survey Valuable?
  • Customized comparison of like-sized firms in similar markets for participating firms.
  • Accurate and valid results reviewed by three CPAs.
  • Reliable year to year comparison with a return rate of 82% from previous year’s participants.
  • Robust pool of participants of nearly 350 firms makes our data relevant to firms of all sizes.
  • Clear cut data displayed by firm size for comparison.
 
The deadline to participate is July 16th. (Thank you to those firms that have participated thus far.)
  • Information is a source of learning. But unless it is organized, processed, and available to the right people in a format for decision making, it is a burden, not a benefit.
  • William Pollard

Wednesday, May 9th, 2018

Profession Update via Melancon

“Attention is a limited resource, so pay attention to where you pay attention.” – Howard Rheingold

Barry Melancon spoke at the BDO Alliance conference this week. Daniel Hood, Editor of Accounting Today communicated many great points from Melancon via Twitter. Twitter is often a great way to learn things – I hope you have a Twitter account and follow @AccountingEdit (Dan Hood) and @CPAmanagement (me).

Here are some of Hoods tweets from Melancon’s presentation. This is IMPORTANT information so you can better lead your firm into the future.

  • For those of you who believe the profession can be insulated from change, that’s a false optimism.
  • Once AI, blockchain, etc. become accepted, they will completely redefine what we think a professional accountant is.
  • Technical skills are table stakes. Finance execs want tech skills, communications skills, and critical thinking/ judgment skills.
  • Technology and the law are changing what tax compliance means.
  • What the world wants now is a combination of tax compliance and tax planning. Tax reform gives us a great opportunity to reposition ourselves this way.
  • The number of U.S. accounting grads hired into public accounting dropped 20% in the last 2 years. But overall hiring at firms was flat – they’re hiring fewer accounting grads.
  • In 2017, a quarter of all CPA firm acquisitions were of non-CPA firms.
  • The digital age in transforming organizations from the traditional pyramid model to more of a diamond, with automation and outsourcing removing a lot of the entry-level staff.
  • We need to start thinking about ‘fat middle’ firms, with more skilled middle-level employees than entry-level staff.
  • In terms of new skill sets, we’re most concerned about mid-career people who need to unlearn what they’ve already learned.
  • The notion of measuring CPE by the hour has to go by the wayside – it’s not about the hours, it’s about the skills learned.
  • The profession can’t say ‘We’re fine.’ No one is, and we’re not exempt. Are we well-positioned for making the changes that go with not being fine? Yes — if we’re willing to change, if we’re willing to take risks, we are very well-positioned
  • The quality of one's life depends on the quality of attention. Whatever you pay attention to will grow more important in your life.
  • Deepak Chopra

Thursday, May 3rd, 2018

There Just May Be A Need For This At Your Firm

“Don’t cry because it’s over, smile because it happened.” – Dr. Seuss

I recently read this on my daily news feed – the daily Skimm. I just had to share it.

“Cry closet” – An actual place at the University of Utah’s library for students to release their stress. What happens in the cry closet, stays in the cry closet.

I have seen “mother’s rooms” and “stress rooms” used in CPA firms. They are very nicely furnished private and relaxing spaces.

Maybe a Cry Closet is in your future. It might be a great benefit during tax season.

  • Let others lead small lives, but not you. Let others argue over small things, but not you. Let others cry over small hurts, but not you. Let others leave their future in someone else's hands, but not you.
  • Jim Rohn

Monday, April 2nd, 2018

Accountant Saves The Day For The Chicago Blackhawks

“A dream doesn’t become reality through magic; it takes sweat, determination and hard work.” – Colin Powell

Accountants are often caught up in the stereotype game. Many people picture them as nerds wearing green eyeshades hunched over a desk living a life of little excitement.

Of course, I loved the movie, The Accountant. It was definitely exciting. Now, I know of a real-life, exciting accountant.

He is an accountant by day but last week’s game-saving hero for the Chicago Blackhawks. His name is Scott Foster, an accountant who plays in an amateur recreational hockey league as a goalie. Last week he was called upon to be an emergency backup goalie in the big leagues and he crushed it!

You will love this story – read all about it here. Watch the video, too!

  • I went to a fight the the other night and a hockey game broke out.
  • Rodney Dangerfield

Tuesday, March 20th, 2018

The Truth About Your Legacy – An Important Message From Alan Weiss

“Just because you are over 50 it doesn’t mean you are finished.” – Alan Weiss

I am sure many of you are aware of Alan Weiss. If not, read his full bio here. When I began my consulting activities many peers recommended the first thing I should do is read his book, Million Dollar Consulting.

When I recently read the description of his new book, it definitely caught my attention. I believe many CPAs should definitely be building their legacy now. The title is, Threescore And More Applying the Assets of Maturity, Wisdom, and Experience for Personal and Professional Success.

Here is Alan’s message:

In our 40s, most of us are tied to a career that requires considerable investment to nurture and sustain. We overlook the legacy that we are—or are not—creating daily.

“Legacy” is not only what we leave to those we love when we’re gone. Our legacy is actually a daily contribution to others, and our duty is to keep adding to and improving it.

It’s poor planning to try to enhance our corporate performance the day prior to a promotion decision. It’s ridiculous to try to create a particular, lasting impression for others on your deathbed. And it’s insane to think that you can change your relationship with family on the eve of a marriage, divorce, or departure.

Are we all in agreement? The last minute doesn’t work.

We mistakenly look to the distant future for our “legacy” to take shape. But the fact is that each day we write a new page in our growing autobiography. The question is, how interesting and appealing is the book? Or is it filled with boring pages and repetitive chapters?

The horizon is closer. That distant line demarking the border of sea and sky has become more delineated, more visible, more imposing. We still have room between us and the horizon, but we realize every day there’s less of it. There’s less time. Because in our 40s, most of us have already lived far more than half of our productive life.

We go from thinking “there’s plenty of time” to “there’s still time, but for what?” We’re all familiar with the adage that no one on their death bed wishes they had spent more time in the office. But what we don’t acknowledge is that most people don’t fear death so much as they regret the things they never got around to doing.  

That’s why our book has to have new pages daily, new chapters monthly. We can’t stop the approach of the horizon, but we can fill the distance with meaningful productivity and contribution.

With Threescore and More, discover what you can do to create your legacy while the horizon is still in view. Here’s how to increase your power, not surrender it; how to improve your influence, not diminish it; how to utilize your experiences in the future rather than pine after them in the past.

Each day you have left is an opportunity to write a new page in your story.

Order before April 8, 2018 for special bonuses.

P.S. Remember—You can always make another dollar, but you can never make another minute.

© Alan Weiss 2018

 

  • Ageism is too often an accepted form of bias, even though the facts support the value of aging.
  • Alan Weiss