CPA Success

Unemployment never looked so good ... or bad

We've read the news reports and watched the network broadcasts and listened to the politicians stress time and time again the need to put people to work.

But you've never seen anything that illustrates the unemployment crisis quite like this.

Our IT manager, Doug Shaner, sent this to me. It's called "The Geography of a Recession," and it uses data from the U.S. Bureau of Labor Statistics to graphically illustrate -- on a county-by-county basis -- the nation's climbing unemployment rate.

Hit "Play" and prepare to be amazed ... and, quite possibly, depressed.

The EITC gets its day in the sun

Need a reason to celebrate?

Well, if the mere fact that it's Friday isn't good enough for you, try this: Today is Earned Income Tax Credit Awareness Day.

Seriously.

The IRS calls the annual observance "a national grassroots effort spotlighting this potentially life-changing tax credit," adding that "the need to reach out and ensure every qualified worker claims and receives their EITC is greater than ever."

So let's get the party started! Find out more about EITC Awareness Day here, then check out these additional EITC resources from the IRS.

Oh, and I'm buying the first round.

Six reasons IFRS might not happen (soon)

We do need a single set of global, high-quality financial reporting standards.

The question is, how can we get them and implement them in the largest capital market in the world -- the United States?

There are six major barriers to IFRS progress in the U.S:

1. Other more urgent priorities: We have all heard about the tyranny of the urgent (over the important). FEI's recent survey of issues facing U.S. corporate finance chiefs put IFRS fifth behind economic recovery, health care reform, employee benefits and regulatory reform.
2. Costs of convergence in a tough economy: Many early adopters have reported costs of converting to IFRS similar to SOX 404 costs, and companies simply cannot afford extra costs in this fragile economy.
3. Mixed messages from regulators: The on-again, off-again, on-again messages from regulators add major uncertainty to companies trying to plan when they should start their focus and project planning. The SEC promised a "road map" by winter, and we are still waiting for direction.
4. Big, unresolved financial reporting issues: LIFO, tax, and the added litigation risk of moving to principles-based standards for both preparers and auditors have not been addressed.
5. Convergence conflict: Significant differences exist between GAAP and IFRS and have not been decided or agreed to yet. The goal of better information for investors and less complexity is the right answer. The fear is, are we in a race to the lowest common denominator or do we have to wait until the IASB-FASB convergence project is complete before a decision to convert is made?
6. Private company standards continue to raise questions in the U.S. The Private Company Financial Reporting Committee and the new Financial Accounting Foundation Blue Ribbon Committee are moving in the right direction. IFRS for SMEs is also gaining adoption and has some great concepts that many small enterprises support. The question is, can we get these to come together quickly before the demand for a set of standards for private companies finds its own solution?

What do you think? Is it time to get moving on IFRS or not?

Resources:

• Latest guidance on IFRS for SMEs (from the MACPA, with related upcoming training programs)
• Podcast with Judy O'Dell, chair of the FASB's Private Company Financial Reporting Committee
• AICPA IFRS resources
• IASB Web site
• CPA Success posts about IFRS

Keynes vs. Hayek: Economics on the m-i-c

I know what you're thinking:

I love hip-hop. I love economics. If only there were a way to combine the two that would easily explain the theories of John Maynard Keynes and Friedrich von Hayek.

Brace yourself: Your dream has come true.

The folks at Planet Money have dug up "Fear The Boom and Bust," a video produced by George Mason University economist Russ Roberts and Spike TV executive producer John Papola. It's an entertaining lesson in modern economics and, by all accounts, a pretty good rap.

Check it out here -- and as "Hayek" says in the song, "Prepare to get schooled in my Austrian perspective."

Have you experienced the Power of A?

There is an old saying that there is power in numbers.

Associations are made for organizing and magnifying that power into what is now called the Power of A.

This Sunday, I got to experience that power as the Maryland Association of CPAs' Board of Directors voted unanimously to support Bill Ezzell's request for help with the AICPA Foundation's Accounting Doctoral Scholars (ADS) program with a donation of $25,000. (That's Bill pictured at right holding the check with MACPA Chair Bill Riley on the left holding the check, along with the rest of the MACPA's board.)

So, what is the Power of A?

It's an effort to highlight examples of associations working together and solving big problems. It was started by the American Society of Association Executives (ASAE). The impact of associations goes back to colonial times and was observed by Alexis deTocqueville in his classic book, Democracy in America (Penguin Classics). He articulated the value of associations well as he wrote:

"In America I encountered all sorts of associations of which, I confess, I had no idea, and I often admired the infinite art with which the inhabitants of the United States managed to  fix a common goal to the efforts of many men and to get them to advance to it freely. ... Americans of all ages, all conditions, all minds constantly unite (to form associations). ... From then on, they are no longer isolated men, but a  power one sees from afar, whose actions serve as an example; a power that speaks, and  to which one listens."

In this case, the AICPA started an effort to unite the CPA profession to quickly address one of its most pressing problems, a severe shortage of accounting professors. The shortage of accounting Ph.ds has become a major bottleneck between the growing supply of students interested in a career in accounting and the demand for more accounting students (and ultimately, CPAs) by employers.

The problem has become so acute that recent studies show that the supply of accounting professors now stands at less than 50 percent of the demand. It is so bad that several colleges and universities are turning away qualified accounting students because they simply do not have enough professors.

This is where associations come in.

The AICPA Foundation started the Accounting Doctoral Scholars Program (ADS) to encourage practicing audit and tax professionals to consider careers as accounting professors. In just two years, they have recruited nearly 60 candidates who are now in their first and second years of accounting Ph.D. programs. The MACPA's contribution of $25,000 helped them accumulate almost $17 million and more than 97 percent of their goal in just two years! We joined 44 other state CPA societies,the AICPA, the Big Four firms, and almost 80 of the top 100 CPA firms in the Major Frms Group.

Now that's the Power of A!

Have you hugged your professional association today?

More importantly, have you renewed your investment in your hard-earned CPA by renewing and becoming active in your professional associations (both the AICPA and your state CPA society)?

Here are a few more resources on the Accounting Doctoral Scholars program:

• Web site
• A Professions' response to a Looming Shortage (from the Journal of Accountancy)
• Pursuing a Ph.D. in Accounting (from the JofA)

Your key to success: Help others succeed

Anyone who thinks humans aren't self-centered hasn't traveled much lately.

Why is my flight late? Where are my bags? You're not going to sit next to me, are you? This line is holding me up. Your incompetence is making my life hell.

It's all about us, isn't it?

The next time you're at the airport, take a good look around. Notice anything? How about the fact that nobody notices you? Everyone is completely wrapped up in their own lives. It's not that they don't care about you. It's just that you don't register with them. They're not selfish; they're just self-absorbed.

And they're not alone. We all do it -- and not just at the airport, either. That self-absorption invades other, more important corners of our lives, too.

Take work, for instance. Too often, we look at business transactions and ask simply, "What's in it for me?" That's a shame, because there's another option that, in the long run, could be even more profitable:

What if we looked at each and every transaction as an opportunity to help someone else? To solve their problems, address their needs, boost their bottom lines? What do you think might happen?

You'll undoubtedly make them very happy, for starters. Beyond that, you'll earn their praise, their trust and, yes, their business.

And here's the funny thing about happy clients: They like to talk. They'll preach the Gospel Of You, and your following will grow.

All because you noticed them.

I don't know if you caught Conan O'Brien's last episode of "The Tonight Show," but amid all the gags, well wishes and remembrances, O'Brien tossed out this gem: "If you work really hard and you're kind, amazing things will happen." I'm willing to bet he's right.

You don't need me to tell you this, of course. It's nothing new, it's not rocket science, and most of us are doing it as a matter of course. We all like to think we put our customers first, and a good many of us do.

It's just that so many businesses have looked inward for solutions to their economic woes lately. If we lay off these folks and cut these expenditures or services, maybe we'll be OK until things turn around. And certainly, that type of frugality has its place.

Isn't it possible, though, that the answer lies not in cutting back on what we do but in helping our clients expand on what they do?

Beats me. These are just some random thoughts that popped into my head at the airport recently as I sat around, not being noticed.

If you're interested, check out these related resources:

• Retain clients and help them recover (from the Journal of Accountancy)
• Three keys to client retention: Ask, listen, serve (from CPA Success)
• Find a Need and Fill It: Your Key to Business Development (a Business Learning Institute program)
• Turning Trust into Value: Business Development Boot Camp (a BLI program)
• How to Attract and Retain Loyal Clients through Trusting Relationships (a BLI program)
• Above and Beyond Customer Service: Improving Service Improves Your Bottom Line (a BLI program)

Want some free CPE? Follow us

Over the past few years, you've helped us turn CPA Success into a rockin' blog for CPAs everywhere ... and thanks for that, by the way. We're more thankful than you'll ever know.

Now, we're hoping you help us do the same thing for our Facebook page ... and we want to make it worth your while with some free CPE.

Simply become a fan of the MACPA's Facebook page. Each month, we'll draw the name of one fan at random. That lucky fan will receive free admission to an upcoming MACPA conference of his or her choice. Those conferences include the following:

• April 30: Government / Not-for-Profit Conference
• May 14: Business and Industry Conference
• June 28-29: MACPA Summit (formerly the MD Biz Expo)
• Sept. 21: Government Contractors Conference
• Sept. 27-28: Chesapeake Tax Conference
• Oct. 29: Advanced Personal Financial Planning Conference
• Nov. 1-5: Advanced Tax Institute
• Practitioners Conference (date TBA)
• Technology Conference (date TBA)

The winners will be announced each month on the MACPA's Facebook page, where they'll be given instructions on how to claim their prize.

Along the way, you'll be helping us build an increasingly active and vital community of CPAs looking to network, share resources and explore the power and potential of social networks.

Let's keep the social-media momentum rolling. And while you're at it, check out these related resources:

• Follow the MACPA on Twitter | LinkedIn | YouTube
• Check out our PowerPoint presentations here and here.
• 7 reasons to not use social media
• Is it time to pay attention to social media?

How to find the 'best and brightest'

Recruiting accounting graduates and student interns can be more art than science. A group of educators is trying to help take more of the guesswork out of the college recruiting process with a new survey designed to see if there is a common framework of skills employers are looking for. 

 

What are the most important "soft skills" you want accounting graduates to have? What are the key "soft skills" you are looking for in new hires? What if you could get an assessment of these skills along with the GPA as another attribute to evaluate when you are recruiting students to your organization?

 

That is the purpose of a very brief survey being sponsored by Pearson - Prentice-Hall publishers and Dr. Steve Hornik of University of Central Florida.

 

Please complete this very brief survey (less than five minutes) before Jan. 28. We will post the results here on CPA Success when they are reported.

 

Here are some key skills to get you thinking:

1. Ability to work in a team environment
2. Leadership
3. Critical thinking
4. Problem solving
5. Communication (written and verbal)
6. Time management

CPAs find their legislative roadmap

Each January, as the MACPA converges on Annapolis for its annual CPA Day, two things happen:

1. I get lost trying to find State Circle.
2. The state's CPAs turn out in force to protect their profession.

This year was no different ... on both counts.

Once I stumbled upon the Governor Calvert House, though, I was greeted by a sight that never ceases to amaze me -- scores of CPAs giving up an entire day of tax season work to lobby on behalf their profession.

• View photos from CPA Day 2010.

For the uninitiated, CPA Day gives Maryland CPAs an opportunity to meet face to face with their legislators to discuss issues that impact the profession. It's one of the most important events on the MACPA's calendar, for a couple of reasons.

Most obvious is the immediacy of our legislative agenda. The issues we're watching this year -- sales taxes on professional services, tort reform, new reporting requirements and a change in the requirements for sitting for the CPA exam among them -- are huge on their own, but throw in the state's budget woes and they become just part of a large web of issues that could impact the state's financial and regulatory picture for years to come.

As if to emphasize that point, Gov. Martin O'Malley released his fiscal 2011 budget -- a $12.7 billion spending plan that includes more than $1 billion in cuts -- on the very day the state's CPAs came to town.

Beyond that, though, the event passes along this message to Maryland lawmakers: CPAs are here. They're smart, they know the issues, they can help you find solutions ... and they're paying attention. You'd do well to pay attention to them as well.

The word on the street is that, as bad as the fiscal situation is in Maryland, it could be even worse next year. If so, this year's event might serve as an important dress rehearsal for the main event in 2011.

Don't discount the current session, though ... or any session of the General Assembly, for that matter. There is simply too much at stake.

We'll keep you posted on any important legislative developments throughout the session. Keep an eye on this space and our sister blog, Legislative Insider, for details.

In the meantime, check out this video from MACPA Executive Director Tom Hood, who discusses the legislative issues that are currently making waves throughout the CPA profession:

In remembrance of Dr. Martin Luther King Jr.

Today is the offical day to remember and recognize Martin Luther King Jr., known as the greatest civil rights leaders in history.

In addition to his accomplishments, Dr. King is also an important lesson for leaders. He exemplified the servant leader who led without any official power. He communicated a vision of how things could be different in his "I Have a Dream" speech and he made a remarkable difference.

Take a few minutes and watch the video clip of one of the world's greatest speeches.