The Connected Accountant

The Law Firm Meltdown - Are Accountants Next?

O.K., first the caveats and disclaimers:

I know that law firms are not accounting firms and that law firms are even more transaction driven than accounting firms. No transactions = no work.  Secondly, a lot of the 'sky is falling' stuff comes from the UK, home of one of the deeper recessions currently underway.  Thirdly, and a combination of the two above, a lot of the firms in trouble are related to The City, London's financial sector hub.

Having said that, the news in the Daily Mail was chilling. A Top 200 law firm preparing to 'go into administration.' (A sort of Chapter 11 filing.) With typical British stiff upper lip, a partner is quoted as saying 'the firm is having some difficulties.'

The rot goes deeper too. Clifford Chance, a firm with offices in New York and D.C. has laid off partners and is reviewing all 30 of its global offices for viability.  These are big guys - In New York they boast of being able to house 500 lawyers in their 14 floors of midtown real estate. Allen & Overy, another Top 5 London firm, has frozen rates and cut support staff by 10%. 

Of course, this might all create work for the insolverncy practices of accounting firms! 

Accountants have no sense of humor?

Apparently, it's true.

The best April Fools joke that was (attempted to be) perpetrated on or by accountants in the media realm appears to have been in Accountancy Age from the UK.  Among the obvious clues that this was bogus was the line:

‘There is a really challenging scene where one auditor sharpens a pencil for almost eight minutes. It’s electric. Almost as good as Omar Sharif’s entry on a camel in Lawrence of Arabia.'

The premise is that Jason Statham (Transporter, Italian Job) plays an audit partner in a drug and drink fueled romp through the high stress world of attestation.

Nobody enjoys good satire more than me - but this was useless.  If this is the best that accountants can do at mocking themsleves then it is a doomed profession!

I hope that somebody out there has better examples.