This can mean the ultimate difficult choice: letting people go. It can also mean a silver lining for your firm: bringing in new players who add strength where you need it.  There are, sadly, a lot of people looking for jobs, and there are probably people that your firm you can’t afford to keep or, given the perfect moment, they would rather not keep.

Trade Up

Some very skilled, high-priced talent is on the prowl—but without the high price. You can get top people today for less than top dollar.  So give some hard thought to every key middle-to-senior position in your firm. Can you replace a B-plus CPA with an A-plus player?  It’s likely you’ll find the perfect man or woman for the job—and save some money in the bargain.  And if your conscience nags at you for taking advantage of the bleak climate (mine would) think of it this way: 1) you can equalize things in the better days coming, and 2) the talent you’re bringing in will be instrumental in making those better days happen.

Trade Down

Equally, some very eager and absolutely cutting-edge young talent is also available. Most would rather take any job than go back to live with mom and dad.  They’ll bring the latest best practices along with them, including a tech-savviness that can be a real shot in the arm for your firm. 

Of course, Generation X-ers are known for a personality profile that hiring firms had best keep in mind.  They’re (very) confident; want responsibility and recognition now, have little time for the traditional gradual climb to the top.  If you can flex a bit to their tendencies, they will be valuable assets not just right away, but over time, as well—maybe even the change agents that help give your firm a future edge.  And, of course, if it’s a choice between a job with you for less than they want—and all the comforts of living with the parents again—you know who has the edge.

How do the above ramblings sit with you?  I have mixed emotions and I’m truly torn on the subject.  Bottom line is that this sort of trading up / down is starting to happen out there.  How do you feel about it?  Please post your comments and let me know. 

Hold the line on fees.  I’m hearing that many firms are being asked to reduce their fees.  With our clients hurting as much as everyone else, it’s not unexpected.  But is it reasonable?  A great deal of our work helps our clients save money.  To me, it doesn’t make sense for us to keep doing that—but earn less for it. That said, being understanding and accommodating is at the heart of a solid relationship—and pays retention dividends like nothing else.  How about payment terms instead?  That helps ease your client’s current pain without a revenue hit for you.  It’s also a mutual vote of confidence—you and your client agree that you’ll still be standing when better days come. 

Get new clients.  When everyone’s trying to hang on to current clients, the idea of prospecting for new ones might seem over-optimistic.  Far from it: historically, the hardest times have delivered the greatest changes in fortune for those who play them right. Think about it: unfortunate as it is, when your competitors reduce staff or services, their clients become vulnerable—legitimate targets of opportunity. So get your sales machine cranked up. As always, the worst outcome is a “no.” You’ll survive that. Be proactive. 

Network more. In particular, be very extra proactive in your networking. Keep your contacts closer than ever, because there’s more activity than ever. Stay particularly close to colleagues and friends at other firms (especially if they’ve recently been let go from other firms, or think they might be) who might share news of vulnerable clients.

Get referrals. I read recently that very few high-level CPAs ask their clients for referrals—seems ‘beneath them’ for some reason.  Well…now is the season, and “because it works” is the reason. Again, this only makes sense: your clients will know of vulnerable clients in their own networks; If they can help their colleagues by steering them to your firm—it’s a win for everyone.

As always, let me know your thoughts. Are you facing fee pressure?  Finding new opportunities?  Share the stories.

The burning question: any checks? 

The e-version of the same scenario: multiple log-ins every day to see if invoice 12345, or any of dozens more—all of them months overdue—have been paid.

Late payments are among the biggest issues facing CPA firms today. If you’re playing that waiting game, maybe you’ve asked your client the obvious question: why?  And maybe you got the typical response: “Sorry—I can’t pay you until my Client X pays me.” Meanwhile, Client X is probably hearing the same story from his or her late-paying Client Y.

One practitioner says “We are becoming a COD Firm, particularly with tax return clients. We are getting more and larger retainers up front, including for 1040 clients each year.”

I have another client who said that if an ongoing client owes more than a small amount ($2,500 or so) they won’t do new work (including 2008 tax returns) until they pay 75% of the prior balance. 

Other solutions?  Send me your thoughts—maybe we can come up with some fixes.

The bad news is that the whole mess is about finances.  That’s also the good news, considering our professional expertise.  Who’s going to solve all of these problems…if not us? 

Put on your work boots, all of you who specialize in litigation support, forensic accounting and restructuring—the bankruptcies will be coming hard and fast. Auditors, you’ll have your hands full also when the new administration launches overhaul of market regulations; the new regs will mean plenty of new oversight jobs.  Tax accountancy gurus, you will also be looking at very full plates.

Jobfox is an online career site that recently listed its predictions—all of which make sense to me, given the heavy (and welcome) emphasis the Obama team is putting on infrastructure, energy, technology, and community. The site tells us what skills will be in particular demand as the administration gets projects up and running.

They figure that along with tax and oversight work, anyone with strengths in compliance, internal audit or government regulation, will be a wanted man or woman. Got experience with financing roads, bridges, transit systems, rural broadband?  New green energy?  Energy grid integration? Health care modernization?  How about what’s the Obama people call “Volunteerism and Community Involvement?”

If you’ve been there and done that…your country needs you.

Our entire industry will benefit from this mess—so let’s consider ourselves about the luckiest of all the professions.  So don’t give up hope and do hang in there.  It’s silver lining time.

Tell me how you think all this action will affect you. 

It’s moonlighting—grabbing some extra billable hours that pay straight into your pocket. 34% of accountants are doing just that, and CPAs are doing it most.  A Bay Street Group survey found that nearly 60% of CPAs surveyed spend at least 11 hours per week in “side businesses”—and half of those are working more than 35 hours a week. And it’s not just about tax returns.  51% of moonlighters are working year-round.

So let’s say…30 hours/week times 48 weeks…that’s 1,440 hours at, say, $50/hr…comes to $72,000 per year. What are the 66% of us who aren’t moonlighting…thinking? 

Sure, those are hours of additional work—not family time, playtime or downtime.  And yes, it does take discipline to turn the home environment into a workplace, especially when there’s family around. Many of the surveyed moonlighters said they had to upgrade their home technology capabilities, so there are financial as well as emotional challenges. 

But those few extra hours a day can turn into a sizable sum.  Why aren’t all of us doing it?  I’d like to believe that 66% of accountants don’t partake in moonlighting because of ethical and loyalty issues.

Is there an ethics issue holding some of you back?  Does it feel not quite right?

If you are moonlighting—does your boss know?  Any sense you’re out of bounds? 

Employers—what’s your take on this?  Do you know who’s moonlighting?  Approve?  Forbid?

Let’s hear from all of you.

Whether you’re entry-level or partner-level, interviews can be stressful. They can follow a variety of formats, from a one-on-one dining interview to a panel-style stress interview. Even if you’ve been in the industry for years, a new interview or discussion with your boss about a promotion can make you feel like a new hire.

Familiarize yourself with these questions to get comfortable talking about subjects that would normally put you on edge, like salary, responsibility and personal strengths and weaknesses. Our Interviewing Tips suggest questions that you can ask your interviewer, and ways that you can demonstrate an interest in their firm. Try keeping an eye out for news on the firm in the local newspaper in the week leading up to your interview. All of this preparation will make you more at-ease on the big day. I’m sure all of us have some funny interview stories under our belts in spite of adequate preparation. Anyone willing to share?

Of course, Morgan Ross Group also offers a great recruiting alternative. But what I really want to talk about is retention. Once you’ve hired that hot new CPA, how do you keep him or her?

Traditional retention factors include an open door policy, flextime, paid overtime or time off, improved technology to reduce mundane work and professional growth opportunity. But I’m curious to hear from all of you what keeps you at your jobs. The list offered in the CPA Journal isn’t really anything out of the ordinary. Any job can offer paid overtime…but I want to figure out what perks are really retention incentives. Companies like Google are famous for their work environment – does your firm rival that atmosphere? Has anyone been offered any great benefits that have made their job seem more attractive for the long term?

Sound difficult? Not so much. Rick Telberg’s Video Snacks for the AICPA remind us of the four keys to success in an accounting career. The skills that are emphasized by those polled (veteran industry professionals) are the same ones kids in grade school are learning in their first weeks back.

According to Telberg, 86% of CPAs interviewed claim that excellent interpersonal and communication skills are the most important factor in determining your success. Second to communication skills are integrity and good character. Following these skills taught in early childhood are a penchant for lifelong learning and up-to-date technical knowledge and skills. So come September, focus on honing these skills and see how they improve your job performance. Maybe your kids won’t be the only ones getting an A+.

Watch Telberg’s video, “4 Keys to Success,” here: http://www.cpa2biz.com/content/media/PRODUCER_CONTENT/generic_template_content/videosnack.jsp.

Our philosophy is “Don’t Believe the Hype.” Lots of great CPAs jump the gun and assume that no one is hiring based on news reports. The truth is that firms are always looking for top talent, whether for expansion reasons, internal promotion or relocation. Break away from the pack and go after the job you always wanted – it only means less competition for the sought after top positions. While the global economy may be slow, the Southeast is still going strong and accounting firms are looking for great leaders.

If you’re looking to advance within your firm, a few extra hours in the office or more attention to detail could set you apart from the rest for a promotion.  With current concerns over costs, employers are aware of the value that each employee offers the company and appreciate your productivity.

Be sure to focus on the long-term, but set short term goals for yourself. Don’t get frustrated if you haven’t found the right position. Set goals for yourself that will improve your skill set and make you a more desirable employee while maintaining focus on how the current economic situation can help you get to where you want to be in the future.

CPAs have to choose between public accounting and private industry.  Most CPAs from Big 4 firms initially think there only other option is private industry.  That is because they don’t always see the benefits of working at a smaller CPA firm.  There are so many quality local and regional CPA firms in the southeast.  Morgan Ross Group only serves public accountant professionals, but even within the public sphere, there are choices to be made between big and small firms. While Big 4 firms can offer great security and the respect earned from working with a recognized and established leader, there are also a great deal of benefits associated with working at smaller and local firms.

Often times working at a smaller firm offers new hires more responsibility, which can be great for those just starting their career or for those looking to learn new skills. For those further along, small offices give employees an opportunity to impact their client’s work and make changes to how their business’ are run.  They are more often viewed as a trusted business advisor by their clients.  Smaller companies can also often offer more flexibility in terms of hours and days off. Many times they are located closer to home, and provide employees with a better work-life balance.

However, this is not to say that a smaller company is definitely the way to go. There are great opportunities for advancement at larger companies too, and I personally had fulfilling experiences when I was working in the Big 4. You will be surrounded by talented colleagues and do work on projects for top clients.

The stigma associated with firms that aren’t one of the Big 4 is that they aren’t quite as good. While the prestige of working at a Big 4 firm can be great on a resume and offer valuable experience, there is much to be said for small firms too. Big 4 firms and small companies serve very different clients, but the work involved is equally stimulating. Salaries for partners at small firms rival those at Big 4, and often time with less strenuous hours. Would you rather be a big dog in a small company, or one of many at a large one?

However, financial companies also need to start thinking and planning more seriously about succession. CFOs are often not interested in discussing the future of their position as they envision themselves staying in their job for quite some time. However, Kate O’Sullivan’s article suggests that while 83% have not identified a successor, the average CFO tenure is only three to five years. This means that shifts are happening on a fairly regular basis. If the employer isn’t thinking about succession, take the assertive role and think about future opportunity. Pay attention to your colleagues’ responsibilities and demonstrate your eligibility for a promotion by learning new skills without dropping your own duties.

So instead of asking yourself who is next in line, I suggest you ask Abbott and Costello’s famous question: Who’s on first? If you position yourself for a top job from the beginning and think strategically about your future, you may be climbing the company ladder faster than you expected.

However, these concerns shouldn’t be keeping you at a job that you’re not entirely satisfied with. One of the ways that Katcher suggests employees move forward is by redefining their goals and clarifying their objectives. He also recommends that employees see a career counselor so that they’re not just “spinning their wheels.” That’s where we come in. Morgan Ross Group is more than a recruitment firm. We’ll help you realize where you want to be and what your goals are, then come up with a plan that will get you there.

There is no reason to stay at a job that won’t offer you a promising future. Take some time to figure out your goals and then make the change. As Katcher says, “A change of venue can have a major positive effect on your performance.” Take charge of your career, moving out might also mean moving up.

But it seems that power in a short staffed industry and a fresh-out-of-college perspective may not be the only thing that these recent grads are bringing to the table. A recent article from CFO.com titled “Today’s Accounting Crop: Spoiled Rotten?” by David Katz argues that new graduates “can hardly mistake the message that their services are in great demand.” As a result, they are “high-maintenance types requiring a great deal of hand-holding, mentoring and immediate attention.” The younger generation also does not have the same degree of job loyalty as their predecessors and are often quick to leave a position for a higher-paying job.

I try to match top public accounting professionals with their perfect job every day and so I find information like this to be incredibly interesting. While job loyalty is an issue, I am more concerned with the attitudes of the new generation. Even though they may have the upper hand in the hiring world, only certain employees will stick up and advance within (and outside of) their companies. My advice to the new accountants? Be a self-starter and make sure that Katz’s complaints don’t reflect your behavior in the workplace. In a job market where the employee already has the upper hand, this could be what sets you apart from the crowd.

The most glaring change is the intentional elimination of net income. There is a big push among some board members to eliminate net income by design and promote business income (income from operations) as the preferred basis for investment metrics.  CFO Magazine listed several other proposed changes including: “reconfiguring the balance sheet and the income statement to follow the three categories of the cash-flow statement, requiring companies to report cash flows with the little-used direct method; and introducing a new reconciliation schedule that would highlight fair-value changes.” Additionally, companies would be required to include expanded segment disclosure.

Reception of FASB’s new format is mixed. The financial data is presented.  However, others suggest that the difference lies mostly in the presentation of the information because “companies would mostly be reporting data they already collect.” A poll from CFO Magazine showed that nearly 70 percent of those finance chiefs polled are not in favor of eliminating net income as an item.

Although I recognize the cost and time that can be associated with this sort of change, I tend to agree with those top finance chiefs.  However, from an investor standpoint, I would find it very useful to have a new hybrid financial statement that emphasized business income (income from operations) as the preferred basis for investment metrics.  This would give a much clearer picture of how well a company did in operating their core business.  However, I’m not in favor of eliminating net income completely.  There is definitely a place and use for it.  The problem is that the average person can’t read a financial statement and doesn’t know what net income really includes and doesn’t include.  At the end of the day, I think the FASB should subscribe to the “KISS” method-Keep It Simple Stupid!  The rules can be so convoluted.  Let’s simplify and focus on intention.  As top public accountants, you all have extensive experience with financial statements. What are your thoughts?

According to a new article from AccountingWeb, Tautges-Redpath is one of three firms nationally that offer a sabbatical program for partners. Some programs encourage partners and principles to spend at least 30 days away every five years, while others require that key players get away from the job.

The thought is that upon returning, employees will be refreshed and will have learned something from their experiences away from the job. Also, it forces other employees to step up, building a stronger team and eventually preparing for succession—which is a growing concern with the upcoming talent shortage.

The idea of sabbatical programs started me thinking about all the talk surrounding work/life balance. We all claim to want “it,” but how often do we actually pursue more time away from the job? There seems to be a general sense of “I’m the only one who can do it right,” which leads employees to forget the concept of division of labor and take on mounds of responsibility.

Rob Tautges’s question seems especially relevant—if we all had complete confidence in our coworkers, would we be more likely to delegate and get home in time for dinner with our families?

But is this new advantage to the detriment of the industry? Recent studies are showing that as competition for skilled accounting and finance professionals rises, retention is becoming an even greater priority. Employers are aware that some of their best people may be leaving in the near future, and they need to find lasting solutions. As the next retirement wave occurs, many wonder whether there will be sufficient talent to fill existing roles. This is great for the new employees, who will be allowed greater control in determining their contracts and may be able to find the work-life balance that their predecessors struggled to achieve.

But what does this mean for the industry? What’s more, Louise Story’s recent New York Times article “Bye Bye B-School,” shows that fewer and fewer college graduates are considering an MBA. Story points out that, “The competition from alternative investment firms—private equity and hedge funds in particular—is driving up salaries of entry-level analysts at much larger banks. And top performers at the banks make so much money today that they don’t want to take two years off for business school, even if it’s a prestigious institution like the Wharton School or Harvard.” Why leave a top-paying job to pay upwards of $50K for another degree? And now, with power shifting in favor of candidates due to the retiring baby-boomers, what incentive will young workers have to earn an MBA?

But that leaves us wondering if, by skipping Business School, the new faces of the finance industry are learning everything “on the fly” or missing out on valuable knowledge.

The debate has become highly politicized and should become a major issue in the presidential race. A classic Democrat/Republican struggle, we’ll have to see how the candidates react to such an extreme bill. But it also has specific implications for hedge funds, buyout and venture-capital firms. Bloomberg News reports, “The measure would raise levies on the compensation that executives at buyout and venture-capital firms, as well as at real estate and oil and gas partnerships, receive for managing investments. It would also require hedge fund managers to pay tax on income they defer in offshore accounts.”

On an individual level, the bill “…contains a permanent repeal of the minimum tax, a tax rate surcharge on wealthy households and a lower corporate rate. It also includes the repeal of business tax credits and deductions while increasing exemptions and credits for lower- and middle-income families.”

Of course, the bill hasn’t been passed,but that doesn’t stop us from asking—what do we think?

But over the past few years we may have let our love for comfortable clothes go too far. A recent article in The New York Times notes that companies are abandoning the specific formal/casual dress code in favor of week-long “business casual” attire. Although the idea of business casual is old news for most of us, it reminds me of how common jeans, flip-flops, and polo shirts are becoming. I’ve never loved wearing a tie, but I also recognize the importance of first impressions and professionalism.

Simon Kneen, Vice President of Brooks Brothers, is quoted in the article as saying, “It’s mostly junior people who take advantage of Casual Friday.” But I’ve seen the mistake of dressing too far down across the board. While khakis may be comfortable for a regular day at the office, I think meetings require slacks or more formal attire. To arrive at a meeting in sneakers and polo t-shirt (even if it is Ralph Lauren) is inappropriate. First impressions and professional standards of dress apply to all employees, junior and senior.

But please jump in; I am curious about other opinions. Am I outdated in saying that we should dust off our suits and pull them out for professional situations? I just think that in spite of new, more lenient dress codes in the office, a higher standard of sophisticated dress should not be forgotten.

This program is designed first to help you assess the level of stress and burnout you may be experiencing, and then to help you do something about it. The emphasis is on real world aids like personal structuring, time management and relationship skills for the person on the go.

Description:
What you will learn:
-FASB Update (to include the Codification Project and selected proposed new pronouncements involving International Financial Reporting Standards)
-Auditing Update (to include new SASs in the areas of documentation and plans to move to International Auditing Standards)
-SSARS Update (to include new issues in Compilation and Review engagement letter and review representation letters specified in SSARS 15-17)
-Further updates will include: updates for new Quality Control Standards and their requirements; updates on the status of “Mobility” issues combined with “Substantial Equivalency;” updates on the status of Peer Review and related regulatory problems; and updates on changes in the Florida Statutes and the Florida Administrative Code
-Ethics Interpretation 101-3 will be explored for implications in the attest/nonattest applications Documentation standards will be reviewed for changes required by SAS 103, Audit Documentation
-SSARS 10 through 14 and related interpretations will be examined for compilation and review changes
-Any other matters deemed appropriate and timely

President-Elect
Royce Duncan

Treasurer
Scotty Jones

Immediate Past President
Stewart Carlin