Category: News

Romney Trumps Obama in Accounting Firm Donations to Presidential Candidates

You may have heard that there’s a bit of a campaign going on for the world’s worst job. For whatever reason, the process of electing the leader of our country’s government drags on like Titantic. Right around, erm, now you’re probably ready to gouge your eyes out with a rusty spoon every time you see an ad for a candidate or debate. Unfortunately we’re powerless to stop it, thanks tycle.

ANYWAY, one of the more useful things we learn during this process is where the money comes from and who it goes to. Now, you may be screaming, “Koch Brothers!” or “George Soros!” and while they can afford to throw around some cash, these stories are old hat and are best left to political bomb throwers with jostling jowls.

For our purposes of informing you, dear GC readers, we’ll give you the lowdown on what kind of cash people from the largest accounting firms are throwing around and who they’re throwing it to. Accounting Today has a full report out today based on data available from the Federal Election Commission and here are the highlights:


• Ernst & Young – E&Y donated the most cash, with personnel contributing more than $89,000. 18% went to President Obama, Mitt Romney received 39% and Rick Perry 37%. Personally, I feel like this money would be better spent throwing it at people in Albany.

• Deloitte – Total of $57,490 in donations. Mittens received 41%; Obama 37%.

• PwC – $36,520 total donations. Romney received 51%; Obama 48%.

• KPMG – The one Obama stronghold. The President received 47% of the total $15,000 in donations. Romney received 32%; Perry 17%.

• Grant Thornton – Obama doesn’t win. GT peeps gave $23,050 and 97% went to Mitt Romney.

What about the other candidates? Well, Newt Gingrich received a grand total of zero dollars from anyone at these accounting firms. Ron Paul received less money than Jon Huntsman. Yes, I know you’ve never heard of him. It’s this guy. Google Rick Santorum just for fun. And check out Michelle Bachmann’s manicures. That’s about all you need to know.

So who gets your imaginary contributions? I imagine most of you out there in Internetland have no plans to fork over any of your meager bonuses to a Presidential candidate but IF YOU DID, who would it be? And feel free to discuss your firm’s generosity or political leanings as you see fit.

Accountants and Firms Fund Presidential Candidates [AT]

CPAs Still Have a Leg Up on Computers, Smartphones Says Leader of CPAs

New AICPA Chairman Greg Anton doesn’t want you to worry; you’re all still very useful.

In his acceptance speech, Anton detailed the many ways technology is changing the profession. Automation has transformed the way financial information is collected, processed and presented, but a CPA’s value continues to lie in his or her ability to solve problems and identify opportunities for clients and employers, he said.

“As CPAs, we can decipher, disseminate and manage knowledge,” said AICPA Chairman Greg Anton. “This is what a computer or smartphone cannot do.”

[via AICPA]

Line Up For Your Own CPA.com Email Address Now!

We’re getting lots of great news out of the fall meeting of AICPA Governing Council in Phoenix, AZ – some of which includes the CPA exam – but this little interesting tidbit might actually be something some of you might want to get on.

CPA2Biz (an AICPA subsidiary) announced yesterday it will offer a CPA-branded email service for AICPA members beginning later this fall. Eligible AICPA members will be able to get an email in their own name that ends with the coveted cpa.com address, making it a much more professional alternative to those embarrassing Hotmail and Yahoo address some (allegedly) professional CPAs use for business purposes.

So, if Caleb were not merely an inactive CPA but an actual CPA, he’d be able to hook up caleb.newquist@cpa.com. He could then use this for everything from his private practice to his, uh, private practice (you know, like Craigslist or Match or whatever it is he does in his spare time when he’s not hitting on girls in the Whole Foods organic bulgur wheat section). Cool!


The benefits here are obvious. First, CPA is a powerful brand, and being able to identify yourself as such in your email address gives that extra bit of authority that you just don’t get from accountingdude2005@yahoo.com (I made that email address up, sorry if that actually belongs to anyone out there). It also makes your email address easier to remember for clients, who should hopefully know your name and at least know that you’re a CPA, making it easy for them to memorize your CPA-branded email address.

AICPA members can order basic email, or step up to a business-class offering that includes premier security, access and easy-to-use management tools. The product was announced at yesterday’s meeting of fall Council.

“This is going to be of significant value to sole practitioners because a majority of them are using consumer email services to conduct business,” said Erik Asgeirsson, president and CEO of CPA2Biz, the technology subsidiary of AICPA. “Additionally, members of larger firms, as well as those in business and industry, now have the opportunity to own a portable professional email account. Regardless of what firm you work for or which industry you represent, it can serve you throughout your career.”

Pricing and service details will be announced in coming weeks. The offering will be the first of many to be featured on CPA.com, the new firm services solutions hub for CPA2Biz.

(UPDATE) Chicago Area Accountant Charged in Drag-Racing Crash

It really sucks when tragedy is caused by utter stupidity and that’s exactly what we have in the Chicago ‘burbs. Timothy Salvesen, an accountant from Wheaton, was charged with aggravated street racing and leaving the scene of a fatal crash in relation to an incident that occurred back in January.

Killed in the crash were 32-year-old Joseph Paliokaitis of North Aurora, who prosecutors said appeared to be racing with Salvesen as both drove west on Golf Road at speeds that two witnesses estimated at 80 to 90 mph.

The speed limit on that stretch of four-lane road was 55 mph, Assistant State’s Attorney during Salvesen’s bond hearing Tuesday.

As the two westbound lanes merged into one, Paliokaitis apparently lost control of his 2003 Jaguar and rolled into eastbound traffic, striking a 2001 Hyundai Tiburon head-on.

The crash killed its driver, 62-year-old Migdalia Bloch. of Hoffman Estates, who was on her way home from work, McCarthy said.

Salvesen’s attorney said his client, an accountant who has no prior criminal record, will fight the charges that could send him to prison for up to 15 years.

“It’s an unfortunate situation and Tim maintains his innocence,” defense attorney Henry Samuels said.

After poking around a bit, we found a Tim Salvesen on LinkedIn who is a Senior Audit Manager at KPMG and another Tim Salvesen on Facebook who lives in Barlett, IL (a town next to Wheaton) and lists “KPMG” on his networks but we have not confirmed that the “accountant” charged is the “auditor” we found online.

Messages left with a KPMG spokesman, Mr. Samuels, and Tim Salvesen in KPMG’s Chicago office have not been returned.

UPDATE: A couple more reports give us more details that indicate that Salvesen “accountant” is Salvesen “KPMG auditor.” First, the Tribune reports more details of the crash, saying it was “apparently impromptu […]as the men did not know each other.” It also states that Mr. Salvesen is “an ex-Marine” which matches the profile on LinkedIn.

But the mugshot from ABC7 may be the clincher:

This looks a lot like the guy on LinkedIn but now the photo from the profile no longer appears (it’s not just me, DWB confirmed). Regardless, it’s increasingly appears that Salvesen is Salvesen and since no one likes to return our phone calls, we’ll leave it up to you to decide.

37-year-old Wheaton accountant charged in drag-racing crash that killed two [CST]
Man charged with street-racing months after fatal crash [CT]
Accountant charged in drag racing crash that killed 2 [ABC7]

David Einhorn Roasts Green Mountain’s Accounting

“I believe the available market is smaller than the bulls believe it to be and that Green Mountain has already penetrated a good chunk of it,” Einhorn, president of Greenlight Capital Inc., said today during his so-called “GAAP-uccino” presentation at the Value Investing Congress in New York. “The market is limited,” he said. The company also has a “litany of accounting questions,” Einhorn said, adding that it has reduced transparency and needs to improve disclosure. [BBW]

Occupy Wall Street “Accountant”: Occupy Wall Street Finance Committee Working on Creating a Committee That Will Deal with Finances

Earlier Adrienne mentioned that many of you, while not literally Occupying Wall Street, are taking it to the man by shuffling to and from your cube farms every day, only to go through the motions filled to the brim with spite. Despite this silent protest that consists of wrinkled slacks, scuffed shoes and pizza with meat on it, there is still a tremendous demand for some good accountants downtown.

Yesterday, we did OWS a favor by hanging a wanted sign in the proverbial window. So far the group’s chief treasurer is 21 year-old Victoria Sobel who is depending on everything from “a large cooking pot covered in cardboard and duct tape” to “a yellow messenger bag” and the occasional Good Samaritan CPA who has already told Ms Sobel that she needs to do some “delegating.” However, if you think these basic methodologies will serve the protesters well and that it sounds like they’ve got things under control, you may want to reconsider. Brooklyn Ink talked to one of the “unofficial” accountants, Peter Dutro, who made it sound like the finance committee isn’t as robust as they might need:

The Ink: How much have you received overall so far?
Dutro: We have a little over $100,000.
The Ink: And where does the money go?
Dutro: Food is our biggest expense. We spend roughly $1,000 every day.
The Ink: Are there any plans for the future and what you will do with the money?
Dutro: There is a lot of thinking about long-term sustainability in the minds of a lot of people. We haven’t made any decisions. We are trying to figure out a way to have a body that deals with financial decisions.

Looking for a leadership opportunity? This could be your chance.

Meet OWS’s (Unofficial) Brooklyn Accountant [Brooklyn Ink]

Wanted: Accountants for Large Protest; Organizational Skills and Experience with Anything Slightly Resembling a Expense Reimbursement Policy a Plus

As you may have heard, there is a number of mighty upset people occupying various streets around the country. By reading some of the signs being held by these occupants, it’s obvious they’re peeved about a number of things. With such a wide range of gripes, the crowds have gotten quite large and since many people sympathize with the protestors, lots of donations are being made by those passing by, usually in the form of cash. This, as any accountant worth their salt knows, can be problematic, as evidenced by this video:

As the protests have grown, so have the donations. And since protests aren’t exactly bastions of internal controls, the problem of tracking the money coming in and being spent has become quite a chore. That chore has fallen on one person named Victoria Sobel who is functioning as Occupy Wall Street’s “chief treasurer.”


There’s no indication that Victoria is an accountant and, oddly enough, there doesn’t seem to be a lot of ready accountants amongst the occupiers, so the methods currently being used aren’t exactly robust. They started housing collections using “a large cooking pot covered in cardboard and duct tape” and gradually moved towards high-tech tools such as “donation buckets” and “a yellow messenger bag.” Despite these improvements, this system still needs some work Fortunately for Ms. Sobel, a person with some relevant experience recently turned up:

Then the first consultant, a certified public accountant sympathetic to the cause, came to help. Jo Ann Fleming […], who besides her accounting work has a radio show called Flash Talks Cash, sat down in a red tailgating chair next to three activists volunteering on the Occupy Wall Street finance committee.

Fleming heard a rundown of how the operation is working so far: Most of the money comes in through two donation buckets stationed at the ends of the park, where a steady throng of tourists and commuters is always passing by.

Teams of volunteers are split up into working groups for areas like food, sanitation and medical supplies, then spend the money on communal goods. Anyone who wants to be reimbursed for expenses has to get approval from a finance committee member before making a purchase. If it’s less than $100, they’ll sign out some cash, with orders to return with the goods and the receipt. If it’s more than $100, the purchase is supposed to be approved at a town meeting.

Once again, a CPA to the rescue! But since Ms. Fleming can’t quit her day job, she gave the best advice she could to the team on the ground:

After some probing, accountant Fleming determined the group needs to come up with a clear policy on how to get reimbursed for expenses. She suggested more frequent collection of the donation buckets, to avoid the temptation of dipping hands in—“cash is very troublesome.” And she urged them to create a spreadsheet tracking how much was received and paid.

More frequent collections. Clear, common sense policies. Spreadsheets. All excellent suggestions. But perhaps most importantly, Ms. Fleming recognizes when someone is doing the job of three people and is on the brink of cracking up (an important instinct in today’s accounting firms) so she gave Victoria some advice.

She turned to Sobel: “One woman can’t run the show. You’re exhausted; I can hear it in your voice. You need to delegate. You’re going to get burned out.”

Any double-entry experts that have some time on their hands and want to help the cause need to get downtown ASAP.

Anti-Bankers’ Dilemma: How To Process $$ [NHI]

Accounting Firm Merger Mania: LarsonAllen and Clifton Gunderson Feeling Each Other Out

It’s been quite awhile since we heard a good merger rumor and this past week we finally heard one that doesn’t involve Moss Adams or Grant Thornton.

Rumor has it Larson Allen and Clifton Gunderson are merging. Vote approved by Larsen Allen, vote pending by CG.


We checked with another source, someone familiar with dealings within the accounting industry, who confirmed that the two firms are talking. According to this person, the combination would make sense as both LA and CG are “sleepy” firms that don’t perform public company audits and have been making small acquisitions here and there. Also it would strengthen CG in areas like Virginia/Maryland where they are rumored to be lowballing engagements and Larson in places like Illinois, Indiana, and Wisconsin where CG has a big presence. This person also said that the deal was “probably 50/50 right now” with the rumored name of the new firm being “CliftonLarsonAllen”.

Clifton Gunderson CEO Krista McMasters told Going Concern that this is “not a story” right now because the firms are simply in “exploratory discussions” and there has not been a vote by the CG partners. Ms. McMasters also denied that there had been any decision on the name of the combined firm, reiterating that they are simply feeling each other out.

Even though it doesn’t sound like things are hot and heavy yet, we rammed a few details together from Accounting Today’s most recent Top 100 Firms list to see what the CliftonLarsonAllen firm would look like:

• A combined $470 million in revenues. That would be good enough to be the 10th largest firm in the U.S.

• 60 offices (probably some consolidation) in 24 states and The District of Columbia.

• Over 300 partners and 3,000 total employees.

A spokesman at LarsonAllen declined to comment but was trying to get someone in the know to call us back. So far, we haven’t heard anything. If you’re in the loop and have more details to share, email us.

Iowa Businessman Could Really Liven Up Your Accounting Firm’s Firings

If you’ve been in public accounting for a number years, you’ve certainly seen your share of colleagues get shown the door either due to work performance that was not up to par, “a slow down in the marketplace,” or engaging in office antics that are typically frowned upon. This is typically handled in a manner befitting of a professional accountant. That is, a very solemn conversation in a partner’s office with regrets, thanks for service, yada yada yada.

William Ernst (no relation, I’m guessing) is a Bettendorf, Iowa businessman that owns a chain of QC Mart convenience stores, and he was sick of his employees acting up. Fooling around behind the counter, bad language, smoking grass wearing hats. Poor clerking. To help make his point, Mr. Ernst decided to start a little contest and sent a memo to employees laying out the groundrules:

“New Contest – Guess The Next Cashier Who Will Be Fired!!!

To win our game, write on a piece of paper the name of the next cashier you believe will be fired. Write their name [the person who will be fired], today’s date, today’s time, and your name. Seal it in an envelope and give it to the manager to put in my envelope.

Here’s how the game will work: We are doubling our secret-shopper efforts, and your store will be visited during the day and at night several times a week. Secret shoppers will be looking for cashiers wearing a hat, talking on a cell phone, not wearing a QC Mart shirt, having someone hanging around/behind the counter, and/or a personal car parked by the pumps after 7 p.m., among other things.

If the name in your envelope has the right answer, you will win $10 CASH. Only one winner per firing unless there are multiple right answers with the exact same name, date, and time. Once we fire the person, we will open all the envelopes, award the prize, and start the contest again.

And no fair picking Mike Miller from (the Rockingham Road store). He was fired at around 11:30 a.m. today for wearing a hat and talking on his cell phone. Good luck!!!!!!!!!!”

Any firms considering cuts in the near to intermediate future, could really do well by this method. Although, since we’re dealing with a workforce that’s a little preoccupied with money, you’ll probably have to up the award to $100.

Firing contest by boss leads employees to quit [DMR]

An Underwhelming Majority of State Societies Want a New FASB For Private Companies

Thirty three state CPA societies have reached out to the Financial Accounting Foundation (FAF) or passed regulations urging it to create a new board to write differential financial reporting standards for private companies. Alabama, Arkansas, Colorado, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin and Wyoming all feel FASB’s current standards setting process does not adequately address the needs of the private company sector.


“In today’s business world it is extremely rare to get an overwhelming consensus supporting one idea. However, the responses from the state societies are another example of the CPA profession’s overwhelming support for an independent board to set differential standards for private businesses,” said Barry Melancon, American Institute of Certified Public Accountants (AICPA) president and CEO. “The message is clear; FAF must do this now or run the risk of missing our best opportunity to make GAAP relevant for private companies.” The thirty three states in agreement on this issue represent some 275,000 CPAs.

These state societies basically told FAF that GAAP has become too complex, and the cost associated with GAAP-based financial reporting has become too much of a pain in the assets for private companies, placing an unnecessary burden on these companies with little benefit to financial statement users as a result of this effort. Personally I think the states here are forgetting that the complexity of GAAP and its esoteric intricacies keep a lot of CPAs gainfully employed, as someone actually has to analyze, manipulate, audit and teach that crap. CPA review instructors need to sell FAR videos. Caleb and I need things to make fun of, like SEC Chief Accountant James Kroeker reminding a PACE University IFRS discussion that the P in GAAP stands for principles. Right. Like we forgot.

Anyway, nearly 3,000 letters have been sent to FAF from the private company constituency in support of this separate board for private company reporting standard setting. Maybe FASB has too much to do and too many clever interns to train. Maybe FASB has lost its public company influence and this is just the first step in the coup to overthrow it. I haven’t heard very many pushing for more FASs directly handed down from (mostly) European accounting standard setters but that’s an argument for a different day.

“The boards of more than half of the country’s state CPA societies, representing more than a quarter of a million CPAs, agree that a systemic problem exists,” stated Paul V. Stahlin, chairman of the AICPA. “After over 30 years of research by numerous diverse and independent groups, the only conclusion is that an autonomous standard-setting body under FAF to set differential standards for privately held companies must be created.”

Must be. There’s no way around that.

And for those interested, here’s a tl;dr PwC report tangentially related to private company accounting standards you can read. Perfect for a Friday.

Vault’s Accounting 50: The Not Quite Top 25

Earlier we sprung this year’s Vault Accounting 50 on you, with the surprising news that Grant Thornton had come out of nowhere to take the ultimate bragging rights. While all of the usual suspects managed to make into the Top 25 (many of them just barely), there are plenty of familiar names in the 26-50. Sure no one gives a damn but Vault went to the trouble putting this thing together and there’s some good people over there, so we’ll play ball.

26 (27) J.H. Cohn
27 (26) Plante & Moran
28 (30) Crowe Horwath
29 (29) Clifton Gunderson
30 (35) LarsonAllen


31 (31) BKD
32 (13) Reznick Group
33 (36) Anchin, Block & Anchin
34 (32) WeiserMazars
35 (19) ParenteBearde
36 (39) Wipfli
37 (42) Citrin Cooperman
38 (38) UHY Advisors
39 (43) Margolin, Winer & Evens
40 (45) Blackman Kallick
41 (37) Novogradac & Company
42 (NR) RubinBrown
43 (NR) Schonbraun McCann Group
44 (9) Kaufman, Rossin & Co.
45 (NR) Lattimore Black Morgan & Cain
46 (50) Frank Rimerman & Co. (tie)
46 (NR) Habif, Arogeti & Wynne (tie)
47 (NR) Burr Pilger Mayer
48 (NR) Horne
49 (NR) Suby, Von Haden & Associates
49 (NR) Ehrhardt Keefe Steiner & Hottman
50 (46) Aronson & Company

Two notables that we’ll mention: 1) Reznick Group’s drop from 13 to 32 could be due to the respondents’ reaction to the tricks pulled during our Coolest Accounting Firm competition; 2) as for Kaufman, Rossin & Co., well, the firm is out of Florida. That should explain it.

Accounting Firms Rankings 2012: Vault Accounting 50 [Vault, Earlier]

Surprising Absolutely No One, FASB Pushing Back Their Convergence Timeline

Floored. Just floored.

Financial Accounting Standards Board chair Leslie Seidman said that many of the priority projects slated for convergence with the International Accounting Standards Board probably will not be settled until next year at the earliest.

Les will have all you haters know that this adjusted timeline has been well received by those that are taking this shit seriously:

This is a real process with real outreach and real consideration of the issues that have been raised. And the fact of the matter is that it takes time to work through these issues. The changes which we have made to the timetable, which we have made jointly with the IASB, have been very well received among the constituents who take this process seriously. They are very supportive of our strong commitment to making sure that we end up with improved standards here that are going to stand the test of time.

So if you were expecting Fisher Price accounting rules, you can forget it. These beautiful babes will be used to line up the debits and credits when Spacely Sprockets finally breaks ground.

FASB’s Convergence Timeline Moves to Next Year [AT via Jim Peterson]