Author: FFC

Millennials are everywhere.

As the largest generation of Americans ever, they seem to be changing every aspect of our society. They’re influencing marketing trends, technological advancements, politics, travel, food — there’s little that isn’t affected by this generation’s unique way of doing things.

They are affecting your tax firm too — even if you don’t realize it yet.

Millennial tax clients are few and far between for most of us. Generally, their taxes aren’t yet complex enough to warrant our services. But as this age group acquires wealth, we’ll begin to see more and more of them walking through our doors.

So it’s crucial we’re thinking about how to adapt our unique way of doing things to meet theirs.

Here’s how the millennial generation is already changing our image of the typical tax client and how you can prepare your firm to advise them.

It all starts with technology.

Millennials are technologically-oriented. Born between 1981 and 1996, this generation saw the introduction of personal computers into private homes. They witnessed the birth of widespread internet and mobile phone use. They were some of the first to engage in e-commerce and social media. Their entire way of life is framed and filtered by the technological advances of the last 40 years.

It shouldn’t be a surprise, then, that this appreciation of technology would influence their interactions with their CPAs. But for some CPAs, this is a tough adjustment.

Some of us rely on tried and true tax preparation and communications methods to do our jobs. We mail out paper engagement letters and organizers. We sit down to face-to-face meetings with clients. We still use fax machines! But millennials are interested in high-tech, paperless and sustainable options when engaging with their CPAs.

So how do we adapt? We use the technologies they’re using to deepen our relationships with them. We introduce paperless options — like electronic organizers and PDF copies of returns — to our practices. We use electronic signatures, client portals, secure mobile apps and virtual meeting platforms. We start texting! We equip ourselves with new tools and get on board with a different way of doing things.  

Millennials know more about tax than you think.

At their core, the millennial generation is inquisitive and industrious. They’ve grown up in an era when information is literally at their fingertips, and they’re savvy when it comes to using that information. By the time a millennial client walks through your door, they’ve already read up on you, your firm and are often well-versed in their tax concerns.

Millennials looking for tax services will likely rely on search engines to find and learn more about you. They’ll also look for you on social media and business review websites like Yelp.

If you don’t have a website and social media presence, you’re not going to get traction with this generation. And it’s not enough to just have an online presence. Your website must be well-designed and up-to-date with curated content relevant to a younger audience. You can learn more about how to use technology to better interact with all clients in this guide from the Tax Practitioner’s Marketing Toolkit.

Don’t rely on your website and social media presence to do all the talking. Taking steps to create a deeper relationship with younger clients can help retain them throughout their financial lives:

• Create opportunities to connect that are outside of the norm. Consider scheduling an open house where millennial clients can meet and mingle with staff over hor d’oeuvres.
• Set up client appreciation programs, giveaways and prizes for referrals.
• Tailor your services to a younger generation and go out of your way to show that you care about their current and future financial situations.

No matter how you engage with your millennial clients, do so often and keep your finger on the pulse of what they value in their interactions with you. 

Financial concerns are different for many.

Current millennial tax planning generally focuses on the best methods to maximize tax savings. But their current financial situations will affect how we address their tax planning in the future.

For instance, many millennials have significant student loan debt, which can impact their ability to save for retirement. This could be a major financial concern should monthly Social Security benefits change or be reduced in the future. As a result, this generation may work longer, altering how we approach their tax planning around retirement, investments, property and healthcare.

With a wide variety of possible financial concerns facing this generation, we’ll need to adjust our approach to tax planning early and often for each client.

Whether you’re seeing an influx of millennial clients or not, the fact remains that this generation is going to change the way the tax profession functions. If you aren’t taking steps now to prepare, you may be behind already.

Times are changing, and tax firms must keep up. To help guide you, the AICPA created the Small Firms Resources hub where you’ll find tools to assist your firm’s transition into a powerhouse of the accounting profession.

Kristen L. Pilchard, CPA, Tax supervisor – TGM Group, LLC. Kristen lives in Salisbury, Maryland with her husband and their two dogs.

Michael V. Ohanesian, CPA, MST, Tax manager – Parr & Associates. Michael lives in San Antonio, Texas, and is a member of the AICPA Tax Profession Strategic Advisory Group.

     

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Do you remember how it felt when you decided to become a CPA? The promise of those three magic letters can be very exciting, but first, comes with the start of a big life-journey. A journey that entails the preparation for the CPA Exam and the dedication and time commitment necessary to see it through. What’s the best way to study? Is the CPA even right for me? How do I find time to study? Those are just some of the questions that may have crossed your mind back then, and continue to come up with today’s future CPAs.

The AICPA recently launched a new podcast series, Next Stop: CPA, which takes a more informal, conversational, and at times, humorous approach to covering the wide range of topics that are most relevant and important to your Exam candidates. Hosted by AICPA’s Mike Horan and me, Next Stop: CPA releases 1-2 episodes each month that are designed to share valuable insights about the Exam, the profession and related topics.

Listeners can expect to learn more about what the CPA Exam Blueprints are and how to tackle them, Exam administration through interviews with National Association of State Boards of Accountancy (NASBA), test-day prep tips, professors’ insights on how colleges are preparing future Exam candidates, why a CPA-positive firm culture is so important and more.

In our first episode, “What’s your Exam strategy?” I spoke with CPAs Dr. Sean Stein Smith, a professor of accounting at Leman College in New York, and Angela Ho, Chief Accounting Officer with OceanFirst Bank in Red Bank, New Jersey, who shared the strategies they followed while pursuing the CPA. These included the obvious “manage your time well,” “rely on your support network,” to the less obvious “get noise canceling headphones” if you’re studying in a place prone to distraction (i.e., around young children or your talkative parents). Along with sharing their personal tips and tricks for preparing for the Exam, they had some inspirational words for listeners who may be struggling or questioning their decision to stick with it.  Dr. Smith mentioned “It was really tough to keep going sometimes, especially after I failed a section. I had never failed a test in my life, so it really took some personal grit to harness that internal willpower and motivation and push through and do it. But if you’re in it or considering it, do it, the Exam is 100% worth it and will pay off now and well into the future.”

While some episodes are more motivational and share perspectives from those who’ve been in the shoes of the listener, others are information-driven, like the Exam section-specific episodes that include interviews with the AICPA’s CPAs who oversee the development of each section. In these episodes we get to know the section leaders a little better, what their experience was like when they took the Exam, and the latest information about their specific section and how best to approach it. We also gain some valuable insights. For example, in the AUD-focused episode “You AUD to know,” guest Kevin Gouldey, Manager of Exam Content, notes “I’m always a little surprised at the lack of understanding some people have around audit assertions.  They’re basic building blocks for an audit, and it’s an understanding that people get with time once they’re in the profession. So, I think when people are taking the Exam right out of school, that’s probably something they’re less comfortable with than someone who does have 1-2 years of experience.” Kevin also noted after the episode that this is something most accounting majors learn in school, but experiencing their application in a real-world audit tends to solidify their understanding more than being taught them in a classroom. 

Want to share this great resource with someone you know who’s thinking about or currently pursuing the CPA? Next Stop: CPA can be found almost everywhere that podcasts are available. This includes iTunes, Google Play, Spotify, Podomatic, Stitcher, TuneIn, Spreaker and other podcast outlets. Be sure to subscribe and find out updates when new episodes become available. For the latest Exam information and resources, including the Exam Blueprints, sample tests, scoring information and more, visit aicpa.org/cpaexam.

Lauren Walter, Manager, Communications – Examinations, Association of International Certified Professional Accountants 

     

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Do you remember how it felt when you decided to become a CPA? The promise of those three magic letters can be very exciting, but first, comes with the start of a big life-journey. A journey that entails the preparation for the CPA Exam and the dedication and time commitment necessary to see it through. What’s the best way to study? Is the CPA even right for me? How do I find time to study? Those are just some of the questions that may have crossed your mind back then, and continue to come up with today’s future CPAs.

The AICPA recently launched a new podcast series, Next Stop: CPA, which takes a more informal, conversational, and at times, humorous approach to covering the wide range of topics that are most relevant and important to your Exam candidates. Hosted by AICPA’s Mike Horan and me, Next Stop: CPA releases 1-2 episodes each month that are designed to share valuable insights about the Exam, the profession and related topics.

Listeners can expect to learn more about what the CPA Exam Blueprints are and how to tackle them, Exam administration through interviews with National Association of State Boards of Accountancy (NASBA), test-day prep tips, professors’ insights on how colleges are preparing future Exam candidates, why a CPA-positive firm culture is so important and more.

In our first episode, “What’s your Exam strategy?” I spoke with CPAs Dr. Sean Stein Smith, a professor of accounting at Leman College in New York, and Angela Ho, Chief Accounting Officer with OceanFirst Bank in Red Bank, New Jersey, who shared the strategies they followed while pursuing the CPA. These included the obvious “manage your time well,” “rely on your support network,” to the less obvious “get noise canceling headphones” if you’re studying in a place prone to distraction (i.e., around young children or your talkative parents). Along with sharing their personal tips and tricks for preparing for the Exam, they had some inspirational words for listeners who may be struggling or questioning their decision to stick with it.  Dr. Smith mentioned “It was really tough to keep going sometimes, especially after I failed a section. I had never failed a test in my life, so it really took some personal grit to harness that internal willpower and motivation and push through and do it. But if you’re in it or considering it, do it, the Exam is 100% worth it and will pay off now and well into the future.”

While some episodes are more motivational and share perspectives from those who’ve been in the shoes of the listener, others are information-driven, like the Exam section-specific episodes that include interviews with the AICPA’s CPAs who oversee the development of each section. In these episodes we get to know the section leaders a little better, what their experience was like when they took the Exam, and the latest information about their specific section and how best to approach it. We also gain some valuable insights. For example, in the AUD-focused episode “You AUD to know,” guest Kevin Gouldey, Manager of Exam Content, notes “I’m always a little surprised at the lack of understanding some people have around audit assertions.  They’re basic building blocks for an audit, and it’s an understanding that people get with time once they’re in the profession. So, I think when people are taking the Exam right out of school, that’s probably something they’re less comfortable with than someone who does have 1-2 years of experience.” Kevin also noted after the episode that this is something most accounting majors learn in school, but experiencing their application in a real-world audit tends to solidify their understanding more than being taught them in a classroom. 

Want to share this great resource with someone you know who’s thinking about or currently pursuing the CPA? Next Stop: CPA can be found almost everywhere that podcasts are available. This includes iTunes, Google Play, Spotify, Podomatic, Stitcher, TuneIn, Spreaker and other podcast outlets. Be sure to subscribe and find out updates when new episodes become available. For the latest Exam information and resources, including the Exam Blueprints, sample tests, scoring information and more, visit aicpa.org/cpaexam.

Lauren Walter, Manager, Communications – Examinations, Association of International Certified Professional Accountants 

     

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It’s summertime. The days are getting longer, the temperature is warming up and your most hectic time of year — workwise — is behind you. Congratulations! Now you can relax, at least a little. Summer is also the perfect time to hone your skills in preparation for fall busy season. We’ve assembled a handful of our favorite free resources to help you brush up on your skills and add a few new ones to your toolbox.

Find your niche

Search for that new service offering you’re passionate about. Once you find it, study up and absorb all there is to know about it. Home in and focus so you can really master it and add it to your suite of services. Here are some ideas to get started:

• Sustainability assurance backgrounder — There is demand in the marketplace for assurance on sustainability information. This backgrounder provides a high-level overview on the topic. It’s one component of the AICPA’s sustainability toolkit.
• Cybersecurity resources — Help your clients identify and address cybersecurity risks by providing advisory services. Use the AICPA’s Cybersecurity Risk Management Reporting Framework to advise clients on assessing risks, establishing risk management objectives, updating policies and procedures, and evaluating governance.
• Revenue recognition implementation resources — We’ve developed free tools you can use as you work to implement the Financial Accounting Standards Board’s new revenue recognition standard. They include a roadmap to understanding the new standard and a learning and implementation plan.   

Learn something new

Reach outside your comfort zone and explore an area you don’t know much about. You may end up incorporating some of what you learn into your practice — thereby benefiting your organization and your clients’ businesses.

• Facebook Live on agile finance — Watch this video to learn how you can leverage new technologies and skills to transform your organization.  
• Audit data analytics microlearning video — You can upgrade your financial statement audits with audit data analytics. Check out this video illustrating how you can apply audit data standards formatting to a data set and use the programming language Python to create routines that will help you analyze that audit data standard-standardized data set.
• Small Firm Philosophy podcast series — Small firm practitioners share their tips on a range of topics including growing their practices and building a strong firm culture.  

See the big picture

The accounting profession is transforming at an unprecedented rate, so staying on top of all the changes can be difficult for you — and your clients. Be prepared for whatever lies ahead with podcasts that address a wide-range of accounting topics.

• Journal of Accountancy podcast — The Journal of Accountancy is the ultimate resource for today’s CPA, and these podcasts are an on-demand way to learn about the key issues affecting the accounting profession.
• FM magazine podcast — The Financial Management (FM) magazine podcast series features conversations with executives and thought leaders in management accounting. Podcast topics include governance, risk management, performance management, technology, corporate strategy and leadership.
• Go Beyond Disruption podcast — Technologies like blockchain, robotic process automation and artificial intelligence will forever change the way accounting is done. Stay ahead of the accounting and finance curve while learning how to reset, redefine and reskill with these weekly updates.

Take a deeper dive

As a CPA, you’re an expert in your field and a trusted adviser for your clients. But it doesn’t hurt to brush up on the latest issues affecting your practice. These free learning resources take a deeper dive into specific parts of public accounting. Pick out one (or all!) to find out something new and master your area of expertise.

• PFP podcast — Don’t miss an episode of this essential financial planning resource. Get information and insights on practice management topics and updates on professional issues from nationally known experts and thought leaders.
• Risk assessment microlearning videos — Brush up on the key components of proper audit risk assessment by watching these microlearning sessions. These short videos — each less than three minutes long — share best practices you can apply to your audit engagements. 
• Tax reform podcast library — It can be tough to keep up with all the changes happening in tax. These short podcasts can help. Learn about the key tax reform issues affecting your clients so you can remain their most trusted adviser. (Note: some podcasts are locked to Tax Section members.)
• Deeper dive in peer review audit review documentation webcast — This encore session from the 2017 AICPA ENGAGE conference examines the audit standards’ documentation requirements. You’ll also have a chance to hear what peer review is discovering based on the expectations of the standards and the peer review program.
• At a Glance summary document on new auditor reporting standard — It’s an exciting time to work in the auditing space as standards are changing to keep up with the times. This two-page document provides an overview of changes to Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements (SAS No. 134).

Free resources for next generation CPAs

You can point those studying for the CPA Exam in the right direction by recommending the following:

• CPA Exam blueprints — Share this free resource with CPA Exam candidates at your firm. It outlines what information is covered on the CPA Exam.
• CPA Exam sample tests and tutorials — Encourage CPA Exam candidates to take these sample tests. Since they use the real CPA Exam software, candidates will have an opportunity to become familiar with the format and functionality of this software before taking the Exam.

No matter where your interests lie, the AICPA has useful resources available to guide you in your learning journey. We’re always looking out for something new, so check back in with us often!

Alexis Rothberg, Manager, Communications – PA, Association of International Certified Professional Accountants

Allison Carter Fanney, Manager, Communications – Tax, Association of International Certified Professional Accountants

     

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In 1981, Paul Stahlin, CPA, CGMA, and a former Chair of the AICPA, got his CPA license. Thirty-three years later, his daughter Emily followed in his footsteps by becoming a CPA as well.

The CPA profession of today isn’t the same as the profession of 1981. Technological innovation has created new opportunities for CPAs to provide value and has even changed how CPAs deliver core services. But even throughout all this change, some lessons Paul has learned in his career still ring true today. In honor of Father’s Day, Paul wrote this letter to Emily to share his advice on how she can thrive in her career as a CPA.

Dear Emily,

This Father’s Day, I will be celebrating my 41st year as a father. As I reflect on the last four decades, I’m reminded of all the joy you and your sisters have brought to me and your mom and the many ways you make us proud.

One of these was when you earned your CPA. I know this required hard work, persistence and at times even sacrifice. Your diligence in becoming a CPA is testimony to your competence and, although you probably didn’t realize this at the time, was great preparation for life. The qualities you develop in pursuit of the CPA — a commitment to excellence, the perseverance to overcome obstacles and skills such as leadership, collaboration and objectivity — will help you in many areas of life.

While I’ve been a CPA for almost 40 years, your career is ramping up. The world is a much different place today than when I was a young CPA. The pace of change is blistering, and to maintain a competitive advantage, you need to be agile and willing to try new (and sometimes uncomfortable) things. Fortunately, the technology and tools at your disposal are powerful. As you progress and build your career, I want to share several thoughts to help you on your journey.

1. Adhere to the core values of the profession. Integrity and trust should be foundational to both your personal life and your career. Inevitably there will come a day when these qualities will be tested. In that moment, I hope that you will do the right thing. (I know you will.)

2. Never stop learning. This is a lifelong goal that must happen day by day. Artificial intelligence, robotic process automation and data analytics are not just buzzwords. These technologies are changing the profession. Opportunities abound in both the services CPAs provide as well as how we provide them, but you have to see and seize them. In fact, the CPA profession itself evolves as a result of constant technological advances. If you want to stay relevant, you need to have the digital intelligence to understand how to leverage technology and continually expand your skills.

3. Value the human connection. Technology skills are important, but don’t underestimate the power of skills such as critical thinking, decision-making and empathy. These qualities will not only help you build deeper relationships with your colleagues and clients, but also will allow you to deliver higher-value services. As more routine tasks and processes become automated, these skills will become increasingly important. Work daily to sharpen these “human skills.”

4. Give back. It’s a privilege as a professional to share your blessings of time, talent and treasure. Find an organization that matches your interests and join its board. This will broaden you as an individual, and you’ll be rewarded more than you can imagine. Remember also to mentor the next generation. This profession has given much to you, and it’s your obligation to pay it forward.

5. Integrate your family. When I began my career, the discussion was about work-life balance. Today it is about work-life integration. Explore how you can include family into your workspace. Let them have a lens into your business life. They may have valuable insights from a different perspective. Ultimately, family should come first. Include them in your business life whenever you can.

6. Embrace diversity of mindsets and backgrounds. Variety is the spice of life that can make us richer, fuller humans. Seek out opportunities to emerge yourself in different cultures. Travel when you can. This will provide you with a broader understanding of how people think and react differently. Above all, you might find it will allow you to see how strikingly similar we all really are.

7. Smile more. Life is about the ride, not the destination. Enjoy what you do every day, and if you don’t, make a change. Life is too short not to live it right.

I am proud of all you have accomplished, Emily. I cannot wait to see what the next chapter of your career brings.

Love,

Dad

Paul Stahlin, CPA, CGMA, FCMA. Paul is a corporate board member and former CFO and CEO. He was also a past Chair of the AICPA and a past president of the New Jersey Society of CPAs. 

     

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Nearly two million students are estimated to graduate with a bachelor’s degree this year. As they enter the job market and evaluate the employment opportunities before them, it’s a good time to remember that the perfect job should be about more than just salary. The American Institute of CPAs (AICPA) asked young millennials who graduated from college in the last two years or will graduate in the next year about the workplace benefits they find most important. Matt Rosenberg, CPA and member of the AICPA’s National CPA Financial Literacy Commission, spoke to AICPA Insights about the survey results and shared some insight young job seekers should keep in mind as they evaluate their employment opportunities.

The top three workplace benefits that younger millennials say will help them reach their financial goals are: health insurance, paid time off (PTO), and student loan forgiveness programs. Does that match your experience working with clients?

Matt Rosenberg: Paying for health insurance outside of a large employer plan can be very expensive. Also, the thought of not having some sort of catastrophic healthcare coverage is very scary for most people. So, it’s not surprising to see health insurance listed as the most desired workplace benefit. However, I am surprised that PTO and student loan forgiveness are the second and third most desired benefits. More specifically, it’s surprising to see these two benefits higher on the list than a 401(k) match which was listed as the 5^th most desired benefit (after working remotely – 4^th).

A benefit package should ideally be a mix of short and long-term perks. A 401(k) match is essentially additional compensation for the employee and will lead to a much higher probability of retirement success. By not saving towards retirement, young millennials would be missing out on the greatest asset they have on their side—time. The contributions made to a 401(k) match have the potential to grow significantly over the long term. I don’t fault young millennials for thinking about PTO and loan debt forgiveness– those benefits address issues closer at hand in their situation. However, it’s very important they consider the whole picture and not just the short-term.

Among young millennials with outstanding debt, student loan repayment was viewed as being the most important use of their benefit dollars. For young job seekers who have debt weighing on their minds, how would you suggest they approach prioritizing potential workplace benefits?

MR: I remember starting my first job after graduating from college and receiving the benefits package from the HR department. There were a lot of choices and it can be overwhelming to make sense of it all, especially when you’re also focused on the actual work that needs to be performed. Here are a few suggestions:

• Approach benefits and financial planning decisions objectively. List out the expected dollar value of each benefit over a long period of time so you can evaluate it adequately.
• Take the time to understand all your options. Selecting the right benefits will not just have a significant impact on your financial future but can also provide peace of mind. It’s not something that should be rushed.
• Get help. For some, it may be their first experience with health insurance, retirement plans, etc. Seeking professional advice on these decisions early in one’s career will likely pay for itself in spades.

Do you have any additional advice for the many young Americans who are just now starting their careers?

MR: I highly recommend that everyone takes time to clearly identify their financial goals and values. Many people think that setting financial goals simply means trying to accumulate as much wealth over time as possible. This isn’t true; and understanding one’s values and goals is a very important first step in the financial planning process.

Finally, take time to educate yourself about the personal financial impact of your employment decisions. The AICPA’s 360 Degrees of Financial Literacy website is full of free resources including information about what questions to ask when evaluating benefits as well as a wide-variety of calculators on topics such as 401(k)s, loan repayment and setting a monthly budget. 

Jon Lynch, Manager, Public Relations, Association of International Certified Professional Accountants

     

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We know that disruption is upon us. Not later, not soon, but right this instant. We’re already in the digital age and the profession is changing fast and challenging our minds to keep up. However, we still need a bit of help with some aspects of disruption. For example, what skills and mindsets will help us navigate the digital age? We spoke with Jim Bourke, CPA, CITP, CFF, CGMA, and Managing Director of Advisory Services for US-based WithumSmith+Brown, who travels internationally to address these questions among others. He also advises on how to stay ahead of the curve and strategically grow your business during the fourth industrial revolution that is transforming the finance and accounting professions. Here’s what he had to say:

Q: We hear a lot about digital transformation and digital readiness. What has changed in the last couple of years?

A: It’s more of an awareness than anything else. And what has happened is? We have all these tools that are coming into the marketplace to help us analyze that data. The problem that we have in this profession, though, is that we’re still following standards that were built before this explosion of data. So, we’re following so many of these legacy rules. I know at the AICPA and CIMA we’re working extremely hard to work with the regulators to bring them up to speed to change the way in which we do an audit, to get away from the sampling world, and focus on looking at one hundred percent. Today there are tools available that allow us to more rapidly analyze one hundred percent of the data than to go through a traditional “accountant type” or “sampling type” technique on an audit process.

Q: What is that digital mindset we need right now that will take us and the profession where we need to go?

A: When you start an audit, you do something called a brainstorming session. And you sit in a brainstorming session with, to be politically correct, I’ll call them with legacy people, and you have new people on the audit: the millennials and the “gen Y’s”. That generation has grown up with technology. They understand technology. So basically, what we do is, we wipe the slate clean. When we start an audit, I say to the young professionals that are on the team, “Rethink this audit from your perspective. How can we audit differently?” Rely totally on the legacy players on the team to help drive us from standards perspective because they have that that great knowledge, but let’s lean on technology. Let’s find ways to utilize technology like we’ve never utilized technology before.

Q: We know the techies know the tech. But they don’t always know the business. They don’t always know how that tech will help the business. Who drives the digital change in an organization?

A: So, think about the rally car. When a car wins a race, is it because of the driver? Is it because of the guy in his ear? No. There are lots of individuals on that team. It’s a team effort, even though there’s one driver. So, on an engagement, you may have an engagement partner. That’s the one driver of the engagement, right? But to be successful in change, implementing change and technology advisory, it’s an entire team. It’s not the tech guys. Although I’d say technology is driving advisory services, everything we’re doing in advisory is driven by technology. Why are we changing? Why are machines doing the manual task? It’s because it’s being driven by technology. So, the technology gurus – they need to have a seat at the table. The auditors need to have a seat at the table. The tax people need to have a seat at the table. It’s not just about CPAs and chartered accountants anymore. Our whole profession is changing. Today we have all sorts of talent. We have engineers, we have all different people. We have software people, we have data scientists, we have so many different people around the table and they’re all part of the team. Everyone plays a super important role in that transformation process.

Q: Are professional finance providers doing things in the same way everywhere?

A: The reason why I love my job so much is that no matter where I go, I speak English, right? But more importantly, I speak technology. And technology is the language that is embraced. I’m sitting here in London today. I talk about technology. Whether it’s Sydney, whether its Mumbai, I don’t care where it is on the globe. I’m speaking about technology. It’s the common language. Yes, certain countries deal with slow internet speeds, some have fast internet speeds, but that’s all smoke and mirrors because it’s technology. From an audit perspective an auditor can’t talk about audit in a common language around the globe. There are differences. Tax people can’t talk about common tax issues around the globe. There are differences. Certain countries are moving faster than other countries with respect to this change. But technology is driving the globe and is driving our profession.

Q: What are some ways you’d suggest that a non-tech team can take on the role of a credible adviser or an advocate or someone who can drive the actions necessary?

A: You don’t need to be a technologist. You don’t need to be deep diving and understanding every single unique thing about technology in order to drive that change. The leaders of firms today, maybe some of the legacy leaders are not as tech savvy as some of the other individuals, but they’re responsible still for driving the ship and charging the direction where the firm is going. In order to allow the firm to remain relevant way into the future, the firm needs to change. Those leaders of today need to embrace change to get that ship sail on the right track so that the firm can be taken to the next level by the future leaders.

Q: “And if someone is uncertain about being credible when they’re talking to technologically savvy members of that team, what advice would you give them?”

A: Here’s my philosophy. I don’t know everything about tech, but I surround myself with those individuals that do. So together, we make change in the firm. Together, we enter the advisory space. Together, we deploy the right technologies. They have the skill sets and they understand technology. I know the profession very deeply. I know audit. I know tax. I know where we need to move as a profession and as a firm. And with a technologist behind us together as a team, we drive it.

Q: What’s one big change that lies ahead?

A: What’s coming up is going back to the roots of what we are as chartered accountants and as CPAs. We’re the trusted adviser. Around the globe, we are the adviser. For many years, we got hung up with compliance type work, commodity type work, and today, we’re realizing that is more of a commodity than anything else. Yes, look, we own the audit. We own the audit space. I love the audit. I own it.  I’m a CPA and I totally value the fact that we own that space. But, I’m also a realist.  I realize that our profession is changing. The true value that I bring to my clients, that everyone reading this blog post today brings to their clients is the fact that our clients come to us with every single need. And I’ll tell you most of the questions I get asked by my clients don’t relate to audit. They don’t relate to tax. They relate to operations, they relate to life, they relate to other things. So that is where our true value lies. It’s the transformation of our practices today from audit, from tax, to adviser. And that’s the true value.

Bourke had a lot more to add regarding navigating the digital age and the mindset we’ll need to do it successfully. Ultimately, it’s much less about knowing all the details about technology, but more about understanding the way that technology is driving our profession as well as surrounding ourselves with those who do have a deeper knowledge of technology. To hear the whole conversation, check out Bourke’s episode of The Go Beyond Disruption podcast. And for more tips on adapting to the digital age, sign up to attend the annual ENGAGE conference online.

Mballa Mendouga, Communications – Manager, Corporation Social Responsibility & Campaigns, Association of International Certified Professional Accountants

     

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Paid time off. Affordable health care plans. Employer-sponsored retirement funds. There’s a lot the modern worker evaluates when considering where they’ll spend their 40-plus hours a week. But more and more, potential employees are looking at another variable when choosing where to work: company culture.

According to a 2018 LinkedIn survey, 70 percent of professionals said they wouldn’t work at a leading company with an unhealthy culture.  

This makes sense to Rachel Montañez, a career coach, trainer and speaker who advises and writes on this exact topic. She said a company’s culture is created by the people who work there, and when staff members are stressed, there can be unexpected effects on culture.

 “Stress impacts most of the skills needed to perform at work, specifically affecting mood, productivity and concentration,” Montañez said. “If the people are stressed, that will ultimately reflect on the culture.”

Are you seeing some of the subtle first signs of a weakening culture, like a lack of teamwork or engagement? Review these tips on how to recognize when culture is starting to slide and learn how to get it back on track. You may find you’re creating an environment that’s even stronger, happier and more innovative than before. Once you’re done reading, you can hear more about the importance of supporting a strong culture in this podcast.

Learn to recognize the early signs.

Teamwork is a company’s core strength, and it’s most at risk during stressful times, Montañez said. A dip in company culture can cause employees to disengage, and this makes collaboration more difficult. Without this strong connection, competition can step in to take teamwork’s place.

A lack of engagement can turn into a negative attitude, and this can spread from person to person. Disengagement also leads to a decline in work ethic. As a culture becomes more and more affected by negativity and a lack of teamwork, staff members will begin to burn out, Montañez added

So how do you improve your company’s culture? Montañez had a few thoughts on that:

1. Put your employees first.

People are the backbone of a company — the inner strength that makes the day-to-day work possible. When a company’s culture fades, it’s the people in the organization who feel it first. If you think your culture is slipping, have an honest dialogue with your staff members about what they’re experiencing and find out how you can address their concerns.

Montañez suggested beginning these conversations by asking questions that get at the heart of what matters most to your employees, specifically when it comes to work-life balance. “You must understand your staff,” she said. “And it’s important to support staff with benefits that will mean the most to them.”

For example, you may discover staff members with young children would benefit from flexible hours or remote work. “You may even want to think about creating new types of family benefits as part of your firm’s benefits package,” Montañez added.

Reach out and ask. But do so in an authentic way and without bias, Montanez said. You may be surprised by what you find out.

2. Focus on wellness.

Wellness can be mental, financial, social, physical or spiritual. It can be a combination of any of these. Everyone on your staff has a unique connection to what makes them feel well, and this directly connects to their overall satisfaction at work.

Determining what wellness means to your employees will help you implement comprehensive strategies to address their needs, Montañez said. She suggested gaining insights by observing and asking staff members about their wellness goals.

Do your employees value healthy eating? Are they interested in supporting green initiatives? Are they hoping to improve their health by quitting smoking? Find out what they need to feel well, then determine how you can help them get there.

3. Develop strong leaders.

A healthy company culture comes from the top. Leaders who focus on positivity, advancement and work-life balance can slow or even stop the decline of a company’s culture by setting the stage for their staff.

“Do some research,” Montañez said. “Look at your industry leaders for insights.” Firms undergoing a cultural downturn should work to strengthen their leaders while reviewing and creating opportunities for career mobility and innovating talent management practices, she said.

Don’t just focus on your leadership, though. Junior staff members can benefit from leadership training too. Encourage them to take part in conferences, continuing education courses and training opportunities that hone their skills and capabilities.

The AICPA Leadership Academy helps the next generation of CPAs build a strong ethic of leadership through an intensive four-day course. Additionally, young CPAs can explore professional development and networking opportunities at the AICPA EDGE Career Development Conference at ENGAGE in June.

No one wants to see their company culture in a downturn, but recognizing it allows you to take action and get things back on track. Being able to identify these changes means you’re keeping your finger on the pulse of your firm.

Whether your firm’s culture needs help, or you’d just like to give it a healthy boost, check out the tools in the AICPA PCPS Firm inMotion e-Toolkit. For more resources to assist your firm’s transition into a powerhouse of the accounting profession, visit the AICPA Small Firms hub.

Allison Carter Fanney, Communications Manager — Tax, Association of International Certified Professional Accountants

     

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It’s time to assess those goals

Remember when 2018 was coming to a close? You were thrilled about the new year ahead. Fully living in the “new year; new me” theme, you made a list of your top goals for 2019. You broke them down into pieces and vowed to tackle them incrementally. You remember!

Well, guess what: It’s almost halftime. With the end of the second quarter creeping up on you, it’s time to assess your progress. Whether your goals are personal or professional, here’s how to recommit to the ones you didn’t complete and celebrate the ones you did.

First, assess your progress.

So maybe you missed a milestone in route to your final goal. Finding out you’re human isn’t a punishable offense; it’s an opportunity. Recognize your limits or imperfections and continuously come up with new ways to improve. Beating yourself up over hiccups will only harm your morale and motivation. If you’re going to meet your goals, you have to keep those two factors intact. Learn to be your own best friend.

But what if you did meet your milestones? Consider that you may either be on the perfect track and therefore shouldn’t change a thing, or that you may not have challenged yourself enough to begin with. If you felt like hitting that milestone was a breeze, try setting the bar higher for Q3. If it felt like a challenge, keep moving forward.

Make a new plan.

Now that you know how far you are from reaching your goals, identify what you need to do to achieve the rest. In other words, you can break down the goal into chunks and allocate blocks of time to each chunk. This step is about re-evaluating how you’re allocating your resources in a way that will support you reaching your goals. Remember that things come up and may change your established plans of action.

Remain accountable to your new personal deadlines.

If you need help sticking to your goals, you can call on an accountability partner or even start a support group. You’ve already agreed to be your own best friend; now you can start adding to the clique. Your accountability partner(s) must know your goals, must know your plan and maybe even have some of their own. Make time to check in with one another and, most importantly, to cheer one another on. Cheerleaders exist to inspire a positive attitude when things are looking grim, that’s exactly what you need in your circle. Pick the people who won’t make you feel guilty about missing a goal but instead who will offer positive and realistic solutions to any lapses you have on the way to attaining your goals.

In the context of goal re-setting, guilt and worry are useless emotions because they aren’t guaranteed to be converted to helpful actions. The key to reaching your annual goals after assessing your progress in the first half of the year, is in fact positive action. If you regularly evaluate your development, adjust your behavior as a result and maintain a positive attitude toward yourself, you’ll be on the right track to achieve your goals. Allow yourself to fail while encouraging yourself to adapt. Check in again with yourself on your goals after the third quarter and repeat this process.

Mballa Mendouga, Communications – Manager, Corporation Social Responsibility & Campaigns, Association of International Certified Professional Accountants

     

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Back in January, I wrote about the CPA Evolution initiative, a joint project with the National Association of State Boards of Accountancy (NASBA) to explore integrating technological and analytical expertise into initial CPA licensure requirements.

I was thrilled that so many of you sent me emails with your thoughts on the blog post and the need for “CPA” to evolve with the ever-changing business landscape. Clearly, you all are very passionate about keeping the credential strong and relevant.

A few themes emerged from your feedback. Since your insights are so valuable to this initiative, I wanted to share them with you as NASBA and the AICPA continue our discussion throughout 2019. Here’s what I heard:

1. Change is good

Although many of you had different ideas for how to evolve the CPA licensure model, there was overwhelming agreement that the profession should evolve to align with the changing marketplace. We were glad to hear that. This thinking is consistent with what the profession’s leadership, regulators and other key stakeholders have expressed as well.

Your feedback pointed out that technological innovation will provide many new opportunities for CPAs to deliver value and is critical in our ongoing commitment to protect the public. Innovations in information processing, automation and data analytics can eliminate some of the manual tasks CPAs have traditionally performed, freeing up more time for analysis and delivering more insightful and meaningful information.

Several of you also pointed out that technology opens up new opportunities for CPAs to serve clients and employers. As organizations integrate more technologies into their business processes, CPAs can advise on the efficacy of their systems and controls while helping address potential risks. If our profession can embrace change and evolve to serve in these roles, we can enhance the value we provide to organizations and the public.

2. Education, examination and experience are important

Your feedback also emphasized that the “three E’s” — education, examination and experience — are important to the initial licensure process. I particularly liked one of your comments that referred to this shared experience as “one of the strengths of our profession.” I wholeheartedly agree, and this will continue to be top of mind as NASBA and the AICPA consider different solutions.

3. However, the CPA Exam should change…

Several of you said that the CPA Exam needs to change to keep up with new technologies, skills and competencies affecting practice. Some suggested enhancing the amount of Exam content related to technology competency and critical-thinking skills. This is all great feedback for NASBA and the AICPA to think about, particularly as the AICPA conducts a practice analysis to ensure the Exam remains current.

4. …and so should education

I also heard from you that there’s room for improvement in accounting education. Some of you suggested that college coursework should have a greater focus on the technological skills and competencies that newly licensed CPAs are expected to have when hired. Others pointed out that there could be a greater focus on the needs of small businesses and startups in accounting education.

Again, this feedback will help inform the direction in which our two organizations take CPA Evolution. NASBA and the AICPA have had an ongoing dialogue with the accounting academic community throughout this project. For example, we’ve met with leadership from the American Accounting Association, and we’ve had discussions with the AICPA’s Pre-certification Education Executive Committee. We’ll continue to keep the academic community involved and share feedback as we move forward.

5. Core accounting skills and competencies must remain

Perhaps some of the most pervasive feedback I received was concern that core accounting concepts, skills and knowledge will be jettisoned in favor of a very tech-heavy profession. While incorporating more technology skills and knowledge into licensure is a key goal of CPA Evolution, we’re not trying to turn CPAs into IT system designers, coders or software developers. Instead, we’re aiming to make sure future CPAs have the skills and competencies they need in technology and analysis to do their jobs more effectively. Some of these skills include data analysis, cybersecurity risk management, business intelligence and information system and organization controls.

Some of you expressed concerns that changing CPA licensure would change what makes the CPA so strong today. I hear you. The CPA stands for integrity, objectivity, trust and competence. Our goal is to promote these strengths in a way that keeps pace with the evolving nature of business and our services.

My ask of you

I’d like to challenge you to think about what it means to be a CPA, the value our profession really provides and how CPAs can keep providing that value in a marketplace increasingly driven by technology and data. Who are the CPA candidates of the future? What skills and competencies will they need to be successful in tomorrow’s business environment and fulfill their public protection mandate?

Take this scenario: If assurance practice becomes more focused on systems and less on numbers, what does that mean? What if artificial intelligence, robotics and blockchain permeate the services CPAs deliver or the way they work with business partners and clients, and bots automate previously time-consuming tasks? Would the CPA of the future need the skills and competencies required for licensure today? Or are there changes that can be made so future CPAs are better prepared for that environment?

Consider another scenario: If cybersecurity assurance becomes a core service of CPAs (which it should), is the financial-statement expert the right person to sign the attestation report? If not, who is? How can individuals with cyber expertise be held accountable to the same high standards and the same lifelong learning and ethics requirements as CPAs who provide assurance on financial statements?

This doesn’t mean future CPAs won’t need to know debits and credits. But it does mean the profession needs to expand our thinking around CPA “core skills and competencies” if we want to remain relevant. And rest assured: maintaining a strong CPA profession will always be the AICPA’s top goal. In fact, that’s why we’re partnering with NASBA to do this in the first place.

What’s next

Many of you had questions about specific tactics and details around the implementation of CPA Evolution. Here’s where we are in the process: NASBA and the AICPA are currently reviewing your feedback. We’re using that information to create principles that will guide the development of a potential new model for initial CPA licensure. We’ll be talking to you and other stakeholders throughout the spring and summer months about these principles. Keep an eye out for more information; we’ll want to hear your thoughts on these guiding principles as well and continue the conversation.

Again, thank you to those who shared your thoughtful comments. I really appreciate your engagement, creative thinking and clear investment in and passion for the future of the CPA profession. To continue to monitor our progress, engage with us and share your thoughts, you can send me an email at susan.coffey@aicpa-cima.com.

Susan S. Coffey, CPA, CGMA, EVP — Public Practice, Association of International Certified Professional Accountants

     

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