The Connected Accountant

A career for life....or just a job?

A recent survey at an audit careers website (A UK-based website) indicated that just 28% of those responding were looking for a career in public practice - less than 1/2 of those looking to be in the private sector.

Having said that, 46% of responses indicated that 'accounting is a job for life.'

Perhaps most telling for associations was the fact that 70% were open to working overseas - those associations that offer or encourage inter-firm transfers or experience are in a good position to support the desires of the new auditor.

Additionally, pending visa arrangements, this could be a way around skills shortages!

New Ethics Rules

With the ink barely dry on the last iteration, here come IFAC with some revised independence guidelines - effective 1/1/11.

The full rules are a bit of a grind at 132 pages, but there are some interesting highlights:

The revised codeextends the independence requirements for audits of listed entities to all "public-interest entities."  You will hit page 126 before the definition of a "public interest entity" becomes clear.  In addition to the obvious - quoted companies, the standard will also apply to any entity required to have a similar audit. So, private companies, government departments, charities, etc. might all now be covered by this extension.

The revised code also now precludes audit partners from being evaluated on (or compensated for) selling non-assurance services to their audit clients.

The material that addresses the definition of a network and a network firm for independence purposes appears untouched at this stage.

National institutes (AICPA, CICA, et al) will now have to go through their own consultation and notification process in order to get these revised rules adopted.

Disaster Recovery? I mean a REAL disaster

First of all, the really bad news.  IGAF Worldwide member firm Stone Carlie, based in St. Louis, MO recently lost their Managing Partner, Tom Valenti to a senseless act of violence.  Family, friends and IGAF Worldwide member firms were able to follow Tom's ordeal through the postings that his wife, Carla, made on a website designed for this purpose.

And while it might seem gauche to even ponder 'business' at a time like this, it is worth pointing out that in addition to attending the funeral and other events to memorialize Tom, IGAF Worldwide members sent their internally developed 'partner loss' programs to Stone Carlie.

And so the question is this - Many firms have 'key man insurance' on their Managing Partner and/or other partners.  And while cash is always handy, what plans to you have to deal with clients, the media and perhaps most importantly the lost partner's family? 

For you, will a crisis like this truly become a disaster, or the implementation of plan that works, but that you hoped you would never have to use?

Best Firms to Work For

Any accounting firm would just love to be in this group.  Accounting Today put together a report Download BestFirms2008  on this, and, unlike some awards, they have some pretty robust criteria in order to be able to make it on the list.  These criteria include:

Job Sharing

Telecommuting

Adoption assistance

And while not all firms had hits in all of the metrics, Accounting Today has found 60 stellar firms.

Of course, I am very pleased and proud (but not at all surprised) that 10% of the winners are members of IGAF Worldwide!

Even in a down economy, the ability to attract and retain quality team members within the firm is a key to success, and my bet is that these firms have the ability to thrive at that metric.

Congratulations to all of the winners!

Aha - Pt. II

Ever had a BFO moment? A BFO is a Big Flash of the Obvious – when something that should have been apparent ages ago all of a sudden reveals itself to you – A Damascene conversion, if you like.

At a recent ASAE (The association for associations!) event, the buzz was all about social media and that was where I got it.  At this point, other IGAF Worldwide staff members probably said, “at last – we have only been telling him for the past 2 years!”  -  But if associations are really about bringing people together then this is really the way forwards.

So (tooting own horn alert) it is great to see that a couple of early adopters of this coolness (not to mention representatives of pretty far-sighted firms by any measure) appear to be somewhat pleased with IGAF Worldwide, but perhaps more importantly with the peer firms that are in the membership.

First of all, Mark Bailey in his Innovative Practice Management blog said nice things about our member firms, and then, in Scott Heintzelman's   blog, he was also very complimentary.  Finally, a group that sometimes gets short shrift in accounting firms - the marketers - got some very positive comments on guru Bruce Allen's  blog.

So, turning off the self-promotion, communication is key - building member loyalty takes consistency of communication and a judgment as to the 'right amount' to keep the message to the forefront without being overwhelming.  Your members want to hear from you - Do they, or do they get an unnerving silence?

Getting the most out of your association

It's actually pretty simple - get involved!

The Exuberant Accountant blog, written by Scott Heintzelman, is a case in point.  Scott blogged from our event at the  Grand America Hotel, in Salt Lake City, UT. (A great location, BTW).  Scott's firm (McKonly & Asbury, in Harrisburg, PA), truly understands how to get the most out of an association - They attend most if not all events - globally, they respond to association-wide requests for information and service, and share their successes and challenges with all members.

Attempting to be diplomatic about Harrisburg, I think that even natives of Central PA would agree that it is not exactly a global commercial center.  However, firms like Scott's are able to move beyond limitations by establishing relationships and then exploiting the relationships they build for the benefit of clients.

While not trying to diminish the power and potential of web 2.0, the plain fact is that we all do business with people that we know, trust and like.  And there is still no better way to develop knowledge and empathy than by spending time with someone.

So if you are in an association, be it professional, technical, trade or social, and you are not getting what you think you should, get involved - you might be surprised how it turns around for you!

Seismic Change - Or Moving The Goalposts?

In the four years since the Parmalat Fraud case hit, regulators have been attempting to define groupings of accounting firms.

Broadly, they wanted to prevent looser affiliations of accounting firms marketing themselves as a 'joined up global solution' and then denying responsibility when one of the affiliates made an error.

This meant that regulations were designed (based on an IFAC model) that defined networks and associations of accounting firms.  Networks could brand under a single name, rely upon work performed in another network office, and gain traction in the marketplace hungry for alternatives to the Final 4.  Associations would not have to do system-wide independence checks, might gain some liability protection for members, but were also enjoined from developing a 'market identity'.  And then it all went pretty quiet. Until now.

The Swiss-based grouping of Horwath now has a 'standard bearer' firm in the US, the old Crowe Chizek firm, now known as Crowe Horwath, and heavily branded as such. Where this leaves the members of Horwath in the US other than Crowe is a good question.  A similar occurrence has taken place at Baker Tilly, where WI based Virchow Krause are, "pursuing a name change that will make us the exclusive U.S. branded firm in the Baker Tilly Globally Branded Network."

It is very possible that we will see further changes among firms and their network/association affiliations as firms map their strategic and tactical needs to the direction that their grouping of firms has selected.

Associations & Networks - Supporting SMEs

The accounting industry/profession isn't the only one to benefit from having associations/networks that can:

• Increase the reach of member firms
• Provide support for clients 'going global'
• Develop benchmarks for best practices among members

Many of the professional services that SMEs (Small to Medium Enterprises) can be accessed through using a local member that is a part of a global association or network.

Examples of this would be:

• Legal Services (www.interlaw.org)

• Insurance Broker Services (http://www.wbnglobal.com/)

So, when dealing with a local/regional provider of any given service, ask how they will handle your business as you expand across the country or around the world.  The more sophisticated providers will be able to direct you to their association and talk about their experiences and those of peer clients.

Financial Crisis - Accountants and Associations

Just three short months ago, IGAF Worldwide had Bill Freund, the former Chief Economist of the NYSE as a speaker.  He was one of our best rated speakers  - ever.  But, just 90 days ago, the current financial meltdown was not a predicted outcome for even this recognized expert.

So what does all of this mean for accountants and associations?

Firstly, members are going to demand that association events provide insight on the new environment for business as a result of the credit meltdown.

Secondly, as issues of governance, risk and control trickle down from the Fortune 500 to SMEs, (small and medium sized enterprises) associations need to be educating members on how to deliver services to clients in these areas.

Thirdly, associations will need to be assisting their members in working with clients on the financing of business expansion now that typical credit streams have dried up to a trickle.

The AICPA is urging congress to ' keep working until a viable solution is found,' while providing little input on what might consitute a 'viable solution.'  The AICPA-affiliated Center for Audit Quality is however lobbying against the suspension of 'mark to market'  accounting rules.

Associations of independernt accounting firms, which have little or no lobbying capability, are (like much of America) sitting on the sidelines watching the process unfold.  As the rule changes (if any) and changed focus within the coporate world occur, these associations may have to alter their service offerings to members in order to remain relevent.

Are You Connected?

Jimi Hendrix asked, 'are you experienced?'  I ask, 'are you connected?'

The goal of this new blog is to explore ways in which accountants 'connect' with their peers around the corner and around the World.  Revealing my bias, associations are a huge way in which you can do that, but there are many other methodologies and opportunities too.

As an example of how accountants are connecting using what is commonly called 'Web 2.0' take a look at what the Maryland Society of CPAs has done in Second Life.  Tom Hood, their CEO is quoted as saying 'It's all about social networking - which is what associations are about.'

I know that those of you that have heard of Second Life are probably worried.  You think you will loose control, that communication will happen without running through a centralized 'system' and that your employees will use it in work hours.  All of your fears are not only justified, but possibly correct!  However, being a facilitator (or better yet, a champion) of this type of interaction within and across firms means that professionals in the firm and those looking at an accounting career will set you and your firm apart from many others.

So, are you connected?  Let us know how.