Please ensure Javascript is enabled for purposes of website accessibility
January 30, 2023

Accounting News Roundup: Shoebox Accountants and Skeptical CEOs | 11.20.17

accountant tax bill busy

Put your back Intuit

Here’s a strange thing that Brad Smith, CEO of Intuit and taker of weird selfies, said recently:

“Anyone who wants to stay in the business of, ‘Send me your shoebox, and I’ll type it in, and I’ll charge you by the hour,’ I think those will be the ones who will be struggling in 5 years,” Smith told Yahoo Finance this week at the company’s fourth-annual QuickBooks Connect conference, held in San Jose, California.

Okay, who wants to stay in the shoebox accountant business? And why does he think it’ll take 5 years for them to struggle? Are they thriving now? Smith’s impression of some accountants seems like an odd vintage.

Revenue recognition procrastination

New revenue recognition rules are coming for companies that follow U.S. GAAP but also International Financial Reporting Standards. Companies following IFRS “must publicly disclose that they have assessed the impact,” but this Wall Street Journal article reports that some are a little behind:

Some sectors, such as telecommunications, media and pharmaceuticals, are expected to be affected more than others. So far, 29% of FTSE 100 companies still haven’t disclosed an impact assessment, according to a September report by KPMG LLP.

“Many companies seem to be crawling to the starting line,” says a guy.

How’s tax reform coming along?

On Friday, we mentioned how no one seems to like the Trump Administration’s tax plan. Now, we’ve come across this LinkedIn post by David Mendels, the former CEO of Brightcove, that has found some traction in business circles. It challenges the Trump Administration’s premise that CEOs are excited about its tax plan and that it will be good for the middle class. Mendels writes:

The Trump team is arguing that massively cutting taxes for corporations will somehow translate into significant wage increases for working people. This argument fundamentally disregards everything we know about how companies actually decide to hire and how much to pay their employees. As a CEO (and in prior roles) I was involved in hiring and determining salaries for 1000s of people over 25 years. From real world experience I can tell you that tax rates literally never came up in any discussion about hiring or pay levels. Customers (demand) and markets determine when we hire, how much we hire, and how much we pay.

College football teams aren’t too thrilled about the plan either.

Previously, on Going Concern…

Jason Bramwell wrote about how chief accounting officers, controllers, and other accounting team leaders retain their best talent, rather than obsess over finding it.

Also, we announced some changes and enhancements to our forum, Open Items. These include new technical categories to discuss audit, financial reporting and tax issues;  compensation, and the Meta channel, where you can leave comments and feedback about Going Concern.

Speaking of Open Items, someone is choosing between a sales tax auditor job with a state comptroller and audit associate position with a Big 4 firm.

In other news:

Get the Accounting News Roundup in your inbox every weekday by signing up here. You can also sign up to receive our job alerts for select cities like Atlanta and San Francisco.

See something we missed? Have a tip, correction, comment, or complaint? Email us at [email protected].
Image: iStock/cyano66

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Related articles

a dog wearing VR

Monday Morning Accounting News Brief: Deloitte on Microtransactions; More EY Split Roadblocks; Have You Become Irritable? | 11.28.22

Happy Monday! Here’s some stuff that’s going on. Several US audit firms told the Financial Times that they had elevated some or all of their crypto-related clients to the status of “high risk”, triggering a more thorough audit that will take longer and lead to higher bills; some clients could ultimately be dropped altogether. KPMG […]

woman working on a laptop with a dog beside her

Monday Morning Accounting News Brief: The Leadership Void; KPMG Gets Fined (Again); PwC Ups Leave | 10.3.22

Deloitte launches Global Sustainability & Climate learning program that aims to enhance skills and capabilities of Deloitte people to help address a global societal challenge. Dubai’s financial regulator has provisionally fined KPMG and one of its former partners $2 million over the firm’s auditing of Abraaj, the emerging markets private equity group that collapsed in […]