• The SEC Whacks Ernst & Young Over Bally Total Fitness — Now for the Spoils of Victory – “it can be predicted – and the accounting profession should expect – that going forward, the SEC will aggressively aim its macho enforcement testosterone at the big firms’ individual personnel.” [Re: Balance/Jim Peterson]
• Choose Wisely! – Joe Kristan’s suggestions are better than the IRS’ [Tax Update Blog]
• Open Memo to Medifast Chief Executive and CFO Michael S. McDevitt – Sam is sticking up for his friend Barry Minkow. [White Collar Fraud/Sam Antar]
• Obama seems to have ignored Geithner’s advice on bank taxes – Yep. He’s fired. [CFOZone]
• Galleon’s Rajaratnam slams wiretaps, stays free – Cherry picked wire taps will not stand, says Raj’s attorney. [Reuters]
Author: Caleb Newquist
Founding editor, Going Concern.
Five Year Outlook: Will You Be an Accountant?
Stupid question you say? Okay but a recent survey done by E-conomic says a nearly half of our friends across the pond want to be doing something else in five years because the tax and financial reporting regulation will continue to be a nightmare.
The difference between wanting to do something else and actually doing something else is well, sorta big.
Accountancy Age:
Anders Bjornsbo, E-conomic’s operational director, said: “It’s alarming that half the accountants we spoke to said they were thinking of leaving the profession. While that’s unlikely to happen, it is perhaps illustrative of the dissatisfaction and disillusionment felt by accountants today.”
Dissatisfaction and disillusionment is something that has been discussed here in spades on our exodus post. But people getting out of the numbers game altogether? Bah. That just doesn’t strike us as a trend we’ll see soon. The survey indicates that most of you will seek advisory gigs as more compliance work moves offshore, “[T]hree quarters seeing themselves moving away from their traditional role to a more profitable consultant and business adviser position.”
That sounds about right. Despite the widespread misery, there are too many jobs out there that pay well. And let’s face it, you guys like money. You’re not going to leave it all behind to join the clergy or become philosophers.
Discuss your outlook and if you’re leaving the traditional accountant life behind for the advisory world or if you’re a lifer as tax/audit/financial reporting. And if you’re leaving all the glamor for the Peace Corps, let us know about that too.
Koss VP Got Busted Just When She Was Getting Really Good at Stealing Money
Sue Sachdeva had this stealing money thing down so cold that she continually outdid herself, stealing greater sums of money every year until she was caught last month (thanks AMEX!).
If you need more evidence that everyone near this company (we’re looking straight at you Koss Family and Grant Thornton) was completely clueless, this should satisfy you.
Here’s the run down for the last six fiscal years ending June 30:
• 2005 – $2,195,477
• 2006 – $2,227,669
• 2007 – $3,160,310
• 2008 – $5,040,968
• 2009 – $8,485,937
• Q1 and Q2 of 2010 – $10,243,310
Jesus, she was really getting good those last six months. Girl couldn’t spend it fast enough.
We’d really like to hear from GTers from the Milwaukee/Chicago offices to let us know how TPTB are handling everything. Maybe it’s NBD to them but we just want to know. We thought this story would stop getting ridiculous but so far it continues to impress.
Koss: Unauthorized transactions increased over years [The Business Journal of Milwaukee]
Job of the Day: It’s Time to Get Serious
Rather than get too cute with you on our job of the day, we’ll just level with you. If you need a job, what the hell are you doing? You’re missing out on all the fun. Move on this.
Check out the details for a Senior Product Controller position at RBC Capital Markets, after the jump.
Company: RBC Capital Markets
Title: Senior Product Controller
Location: New York
Minimum experience: 4 years
Description: The Senior Product Controller will maintain the accounting and finance module of the main NY GAT Fixed Income and Equity subledger system. The position requires a professional able to work closely with various traders, IT professionals, operations, and business analyts to manage the integrity of the local sub-ledger and its feed to the general ledger. The individual must possess an excellent understanding of Accounting basics, P/L production, product knowledge, P/L Decomp, and IT savy. This is a highly visible role due the nature of the position.
Responsibilities: Manage, assemble, organize and produce the Sophis accounting rules necessary for daily functions across all groups such as product Control, Operations, Front Office and Risk. This will include being the lead Finance and Accounting represtantative on all new business rollouts and current business conversions
Requirements: Bachelor Degree, or equivilant, in Accounting/Finance. – Minimum 4 years relevant industry experience. Preferred: – MBA Finance – CPA.
See the entire description over at the GC Career Center and visit the main page for all your job search needs.
Are Weiser and Mazars Making a Run for the Global 6?
As you’re aware, we’re obsessed with the notion of the ‘Global 6 Accounting Organization’ moniker. On the one hand it’s a little silly but on the other, many non-Big 4 firms are making a legitimate run to expand their international exposure.
The latest attempt at piercing the Global 6 comes courtesy of a possible merger between the firms Weiser and Mazars. According to Weiser’s website, the two firms currently have an affiliate relationship:
Mazars is an international, integrated, independent organization, ranked fifth largest in Europe. Weiser has established a joint venture with Mazars utilizing its 10,500 professionals in over 50 countries, as needed, to expand the firm’s global reach.
According to the FT, the combined firms will make a push a building their firm around providing IFRS adoption services:
Mazars and Weiser, which have had a joint venture agreement for a decade, decided to merge with the aim of building a new US practice focusing on the adoption of International Financial Reporting Standards by US companies, according to sources.
Weiser partners believe they will have an advantage in the US market working with European partners with extensive experience of IFRS.
We have a little secret to share with the Weiser partners: The Big 4 has European partners will extensive experience in IFRS too. They’re drooling for the IFRS adoption business just like you so hope you’re coming with super-secret plan that will give you a real advantage.
We contacted a Mazars spokesperson who confirmed that the talks were on-going but told us that the contract has yet to be finalized and that both partnerships will have to vote on the proposal. The vote is tentatively set for February or March.
Whether this is the “mega-merger” that was predicted back in August or not we don’t know but the combined firms would have total revenues of $1.3 billion, according to the FT. That’s just a fraction of the Big 4 revenues but it could put them in close competition with the likes of Grant Thornton, RSM International, and BDO.
We’ll continue to keep you updated on the progress of the talks as we learn them.
Mazars and Weiser merger talks point to revival of global practices [FT]
IRS Commish Finds the Tax Code Complex, Doesn’t Do His Own Taxes
[caption id="attachment_23858" align="alignright" width="260" caption="Dude. Code is this thick."]
[/caption]Just because you’re in charge of the IRS doesn’t mean you know anything everything. Doug Shulman was on C-SPAN over the weekend (we’re sure you saw it) and admitted that he uses a tax preparer.
His rationale is, “Look, I’m a busy dude, I don’t have time to do my own taxes. Besides, have you seen the size of the tax code? It’s a flippin’ mind job.”
Or in his own words:
“I’ve used one for years. I find it convenient. I find the tax code complex so I use a preparer,” Shulman said.
Pressed on how he would make the tax code simpler, Shulman responded, “I don’t write the tax laws. Congress writes the tax laws so that’s a whole different discussion.”
Unapologetic as usual, Dougie. We’ll give him credit though – admitting that the tax code that you’re in charge of enforcing is too complex is admirable (although not a news flash).
Plus, he goes so far to say that he’s powerless to do anything about it. Now that’s transparent government!
IRS commissioner doesn’t file his own taxes [The Hill]
Open Thread: CPA Exam Pass Rates for 2009
Cumulative scores under 50%? Sigh. You really packed it in at the end didn’t you? Don’t worry, we still believe in you (click to enlarge):
All this does is reinforce the idea that you need to be paying attention to what the JDA tells you every week in >75.
Discuss the past, the future, the section that is your sworn nemesis, the story about the taking your last section on the last day of the eighteenth month. Whatever you like. It’s fine if you have to cry a little bit.
Preliminary Analytics | 01.12.10
• Financier Pang’s Death Ruled a Suicide – The cause was ‘combined intoxication’ according to the OC coroner said. Seven drugs were found in Pang’s system including: xycodone, hydrocodone, drugs for anxiety and depression and traces of THC. [WSJ]
• Obama Plans to Raise $120 Billion From Banking Fees – Here’s the good news: “Tax experts, who discussed the possibilities before the president’s plan was disclosed, say all of the administration’s structural options, which include an income surtax, an excise tax, or a fee pegged on the value of assets or some other measure, are likely to be so porous that financial institutions would be able to sidestep most of them.” [Bloomberg]
• The IRS Is Auditing Harvard – One of forty that is part of the tax-exempt status review. [TaxProf Blog]
• Guest bloggers needed – Blogging Suits is looking for a few good ones. Not the one where you talk about how smart your toddler is either. [Blogging Suits]
• Google’s investment arm to grow partner ranks – The investment arm is “bringing more partners onboard as the $100 million fund seeks to build upon the eight investments it has made in companies since its launch last spring.” [Reuters]
• SEC order helps maintain AIG bailout mystery – Mark your calendars for November 25, 2018. Then we’ll know everything. If anyone cares by then. [Reuters]
Review Comments | 01.11.10
• H&R Block adds razzle-dazzle to tax prep in Times Square – So now tourists can get their tax returns done while they wait for their table at TGI Fridays. Just like at home! [NYDN]
• Can Goldman Sachs Bankers Deduct “Forced” Charitable Contributions? – Populist rancor will not subside until Team Jehovah is paying all our taxes every year for the rest of our lives. That’s the only fair solution here. [TaxProf Blog]
• SEC Won’t Seek Civil Charges for BofA Executives, Directors – But they are seeking new charges so let’s not get too excited Charlotte. [WSJ]
• Moss Adams Chair to Lead Private Companies Panel – Rick Anderson will chair the blue ribbon panel on private company GAAP. [Web CPA]
The Lapsed Estate Tax’s First Victim
And by that we mean, he was only 13 hours away from 2010, when the estate tax expired.
Fritz Lohman of New York died at 11 am on December 31, just barely missing the opportunity to save his heir millions in taxes:
Lohman, 87, a SoHo real-estate magnate who pioneered the exhibition of gay art, died at home at about 11 a.m. on New Year’s Eve after a long illness. If he had instead passed away after midnight Jan.1, his partner of 48 years could have avoided paying at least $3 million in estate taxes — thanks to Congress letting that levy lapse for 2010.
For you populists out there, you could probably give a rat’s ass about but jesus, that just sucks. Thirteen hours. That’s shorter than some Law & Order marathons.
Dying 13 hrs. too soon cost $3 mil in taxes [NYP]
Your Client Dumps You Because…
Sometimes the reason for your firm getting the boot is pretty obvious and other times it isn’t. Fortunately for you, Tom Hood over at CPA Success lists the top seven reasons that your clients drop you like a sack of rocks and it sounds like the “It’s not you, it’s me” routine:
1. My accountant (CPA) doesn’t treat me right (two-thirds of the responses).
2. CPAs ignore their clients.
3. CPAs fail to cooperate.
4. CPAs let partner contact lapse.
5. CPAs do not keep clients informed.
6. CPAs assume clients are technicians.
7. CPAs use clients as training ground for new staff.
#1 seems a little vague (feel free to elaborate) to us but we’ve definitely seen 2 – 7 in action. We’d go so far to say that #4 and #7 are a little low on the list but that’s just our $0.02. Smaller clients, especially, want just a tiny bit of partner love every once in a while — lunch, bagels, anything! — but sometimes they’re lucky if they get a Christmas card.
Plus there are some clients that hate nothing more than an engagement team that turns over year after year. There’s nothing more annoying than answering the same questions every year by a different 22 year old accountant.
If you’ve got thoughts on, or additions to, the list drop them in the comments and discuss your client dissatisfaction experiences.
Wanted: Accounting Manager, Enforcer Experience a Plus
A source passed along a job opportunity for a company in Miami that needs an accounting manager. Doesn’t sound out of the ordinary but that there’s a little bonus in it for you if you can make it 365 days:
Accounting Manager – Pre IPO Company- Hospitality Industry
Location: Miami
Compensation: $90,000 – $100,000 + Bonus and other incentives (Free European Cruise after 1 year of employment)
Nice, right? There may be a bit of a catch though. Here’s part of the job description:
We are looking for an exceptional finance professional/ CPA who has very high ethics, strong interpersonal skills, loyalty to the company and to the President, someone who is very honest, trustworthy, hands on, very good with budgets, managing a complex debt structure, very good with complex capex projects, able to watch receivables like a hawk and not shy away from tough collections: able to work quickly and flexibly with cash flows and related dynamic Manage large outsourcing contracts/ contractors manage all expenses create reports for the Board and finance.
So based on the above, we’re thinking that not only must you be a master of double-entry accounting, you shouldn’t be afraid to break some kneecaps in order to convince some deadbeat customers to pay up. Do all this for one year, and you will have earned yourself a nice little vacation. Qualified applicants should get in touch and be prepared to demonstrate your abilities.