Category: Uncategorized

The Government Accountability Office Does a Great Job, Says the Government Accountability Office

We don’t envy anyone working at the GAO. Telling Congress how badly they spend money and then telling the whole world about it (even though no one listens) sounds like a pretty thankless job.

So the fact that the GAO gave itself an “A” on its performance review shouldn’t come as a surprise to anyone. Who else was going to the give them the performance review? Plus if you’re regularly known as the “Taxpayer’s Best Friend” then we think you can be trusted with the honor system.

In fiscal year 2009, GAO met or exceeded all of its performance targets by, for example, identifying $43 billion in financial benefits–a return of $80 for every dollar GAO spent–and over 1,300 improvements in laws and government programs and operations. The rate at which GAO’s recommendations were implemented by federal agencies or the Congress was 80 percent, and over two-thirds of the products issued contained recommendations. During fiscal year 2009, the GAO met or exceeded all of its performance targets and made recommendations that resulted in “over 1,300 improvements in laws and government programs and operations.

To be perfectly honest, that does sound pretty damn impressive. Trying to make any sense of the ins and outs of the federal government isn’t something that we would wish upon our worst enemy.

If you’re still skeptical of the GAO stellarness, you’ll be happy to know that it was recently ranked #2 in the best places to work in the federal government. Now before you dismiss this silver medal, this isn’t some hack job put out by Fortune; this is something that is only issued every two years, by the Partnership for Public Service. We’re not saying that it would be difficult to rank so high on such a list but it’s got to be worth something.

Summary of GAO’s Performance and Financial Information Fiscal Year 2009 [GAO.gov]
Best_Places_to_Work_2009

The CPA’s 12-Step Program For Winning New Business

Avi Dan is President & CEO of Avidan Strategies, a New York based consultancy specialized in advising professional service companies on marketing and business development. Mr. Dan was previously a board member with two leading advertising agencies and managed another.

CPAs have made great strides in the art and science of sales and marketing in recent years but the profession still has a long way to go in adopting robust business development practice. Many firms barely weathered the storm of 2009, but a celebration may be premature. 2010 is likely to be as tough, and perhaps even tougher as clients cut back on expenses. Smart firms are reviewing their marketing plans and planning ways to generate new business in a weak economy.

That is the first step – make sure that you have an effective and comprehensive plan, including cost projections, strategies and person responsible for each. Here is a twelve point checklist for an effective sales plan:

• Cultivating business from current clients is the low hanging fruit. They are already pre-disposed toward you. Just ask them for more business.

• Even resumptions from formerly-lost clients should be considered especially if the loss was not performance relation but for objective reasons, such as a merger.


• Emphasize cross-selling in your firm by getting all senior team members involved in the sales effort and make sure that client/industry knowledge is shared effectively.

• Public speaking on specific topics related to your target prospects. Good old-fashioned word of mouth is still the best new client leads. “Cascade” the speeches into white papers and articles to expand their impact.

• Simply asking clients for referrals of specific types of prospects/assignments among their friends and professional collegues.

• Qualify prospects before investing time with them. Be selective about setting up an appointment on the initial contact and determine valuation of prospect relationship to assess if they are worth pursuing.

• Consider replacing less profitable, time consuming, and unappreciative clients with clients that are a better fit with your objectives as a firm.

• Conduct a “gap analysis” and focus on specific targeted niches: high quality, profitable prospects, and develop a case as to why your experience and expertise is relevant.

• Focus on growth industry with good long-term potential of growth.

• Use relationships with spheres of influence: referrals by attorneys and bankers who reach across companies.

• Use the right people for marketing and prospecting. Not every one is comfortable selling.

• Focus relentlessly on relationship building: aggressive involvement in trade associations and the community; conduct seminars for clients and prospects; cultivate the press including the prospect’s trade press.

To be really successful, you must sell your services. You must generate leads and convert them into paying clients. And the recent Great Recession calls for a significant rethinking of sales and marketing strategies.

While the market for professional services continues to grow, so does the number of firms and individuals competing for that business. In other words, to really succeed means to differentiate yourself from others.

Five Questions with Francine McKenna

Our contributor Francine McKenna takes her job very seriously. When we asked her to participate in our little exercise she insisted that all her answers be as long of some of her posts but we managed to explain to her that none of these questions would be related to the Big 4.

She backed down.

As you know, Francine is the and Founder and Managing Editor of Re: The Auditors and a furious Tweeter. Prior to launching RTA, Francine worked for more than twenty years working for in consulting and professional services here in the States and abroad.

• Why should you accountants read your blog?
Do they really have something more stimulating to do?


• If someone had to read just one post of yours which one would it be?
“Too Few To Fail Or Something More?” tells you everything you need to know about how the current regulatory regime works against the shareholder and for the perpetuation of the myth of the current audit firm business model. It’s my first post with original reporting, it’s where I coined the term “too few to fail,” and still one of my most popular.

• Who is your favorite blogger?
So many favorites now, but the guy that told me blogging could make me famous is Mr. Clublife, the guy who stands on the box at your favorite club in NYC.

• Best thing about blogging for accountants?
They are, for the most part, too introverted to complain or harass me too much.

• The biggest issue facing accountants/auditors today is…
They’ve, for the most part, forgotten that their client is the shareholder and that, as professionals, they owe their first professional duty to that client, not their firms, not their partners, not their colleagues and not the management of the companies they audit.

Busy Season 2010: Generous Accountant Thinks About Others; Arranges Gathering

Because busy season is in full swing, we’ve been discussing motivation a fair amount this week. The latest pick-me-up came way of Houston from someone that decided to take matters into their own hands:

So I know everyone is busy, busy, busy, but I was given a free Happy Hour at Howl at the Moon and wanted to share it with all of you!

What: Happy Hour event

Where: Howl at the Moon (midtown)

When: February 5th, 2010

Time: 9pm – 12 am

Hope to see ya there! It should be a good way to brush off all the stress that busy season has brought!

Happy auditing,


Having never come across such generosity in our own professional experience, we tracked down this noble soul to find out the dealio. Well for starters, our hero reminded us that it’s difficult for the firms to arrange shindigs this time of year so our savior just decided to make it happen.

Plus, people haven’t been able to get together and share their Busy Season 2010 war stories and lament on the days and weeks to come. This is the perfect opportunity to get together and do just that. Also, they told us that you’re all so awesome and you deserve a break.

Gosh, this might be the feel good story of the season. Enjoy Houston!

Ladies and Gentlemen, Stephen Chipman’s Blog is Live

As promised, Stephen Chipman has started his blog with the first post going up today.

I am excited to provide this interactive Blog designed to foster thoughtful dialogue and information sharing between you and me. My Blog enables me to share with each of you my personal thoughts about our business and other important matters. I hope you find this Blog informative as well as useful. Please check back every Wednesday for a new post.


Unfortunately for you non-GTers out there, the blog is not public like Jeremy Newman’s so not just anyone can help him with his grammar (which we’re sure is impeccable) or spelling.

Despite being the blog being for GT eyes only, he’s still excited about spreading the good word through this new medium:

I’m delighted to be writing my first blog. One of the aspects of our modern culture is the ease of informal communication. As I noted in the announcement, I have no pre-planned features or stories, I’m just going to blog the way others do — in the moment.

It’s disappointing that Chip didn’t start the blog a little earlier, say, when he got the news about Sue Sachdeva’s shopping sprees. Catching him in the moment of that particular bit of news would have made for a good post, no? Plus, since he’s so close to Milwaukee, he might have run up their to see some of this loot himself in order to tell us what he thought of Suze’s taste in clothes, jewels, etc.

Our one beef with Steve-o’s first post is that it has too much of a journal feeling to it. Personally, we’d prefer he got on his soapbox about how the Big 4 isn’t all that, or why he thinks Davos is overrated. We realize that he’s new at this so we’ll give him a little time to get it together. In the meantime, be sure to inform us about his words of wisdom going forward.

Five Questions with The Exuberant Accountant

Thumbnail image for confidence.jpgWe here at GC love accountants, contrary to what some of you might think. Starting today, we’ll occasionally introduce you to a few of the finest accountants in the blogosphere.

Our debut is with Scott Heintzelman, The Exuberant Accountant. Scott is a partner at McKonly & Asbury an accounting and consultaning firm in Camp Hill, PA. And make no mistake, this is one EXUBERANT accountant. The fact that he is a CPA, CMA, and a CFE should be enough to convince you. If you’re still not sure and follow him on Twitter and that should it.

Here are Scott’s answers to a few questions we threw his way earlier this week:


Why do you blog?
A passion to educate and arm busy organizational leaders with trends, best practices, and updates.

If someone had to read just one post of yours which one would it be?
Is Our Country on a Collision Course?

Accountants are…
Great lovers – at least that is what Mrs. Exuberant Accountant tells me!

If you’re an accounting blogger you must…
Hopefully understand assets less liabilities equals equity

What’s best accounting firm we’ve never heard of?
McKonly & Asbury – hands down the best kept secret!

The Fortune 100 Best Companies to Work For: Plante & Moran #66

Contrary to what you’re probably thinking, Plante & Moran is no dark horse. They’ve been on the list for five twelve straight years and rank ahead of the rest of three of the Big 4 in this year’s list (cue for “who the hell is Plante & Moran?”). They’ve fallen from their peak of 12th back in 2006 but we’re sure the firm can explain.

Plante & Moran – Previously ranked #42. Fortune took the unorthodox approach of using P&M’s layoffs to describe their greatness: “Audit firm laid off employees, but staff members commend the “team pain” approach: enhanced severance pay, outplacement services, pay cuts for partners, and deferred pay hikes for staff.”


Other interesting stats per the snapshot:
• New Jobs (1 year): 10
• % Job Growth (1 year): 1%
• % Voluntary Turnover: 7%
• No. of Job Openings at 1/13/2010: 17
• Most common salaried job: Audit staff with average salary of $65,500

The firm offers onsite child care during busy season but does not have a nondiscrimination policy that includes sexual orientation nor does it offer domestic partner benefits for same-sex couples.

We’re not saying the latter two reasons are why they fell from #12 but it might help them jump back into the top 50.

Earlier:
Ernst & Young #44

Wherein We Speculate Wildly on the Merger of Accounting Firms Mazars and Weiser

Last week we told you about the on-going Global 6 talks between Mazars and Weiser. As we mentioned then, the copulation of the two firms would put them in the direct competition with the likes of Grant Thornton, BDO, RSM and hell, they may even snag some Big 4 clients.

Web CPA caught up with this story yesterday and we learned that not only has Mazars done business in the states with Weiser, they’ve also “relied on joint venture agreements with U.S. firms…Moss Adams and BKD.”

Maybe we’re going way out on a limb here, but if Mazars is making a play for Weiser (and it sounds like it’s all but a done deal) are they just trying to make a play on the whole IFRS bonanza that’s being unleashed OR are they looking to get closer to the likes of Moss Adams and BKD to expand their exposure and to become a bigger player in the States? Even if Mazars were to merge with Moss Adams and BKD the combined revenues still would be a drop in the bucket of the Big 4 but it would cement their presence in U.S. and allow them to compete even more directly for potential business here.

If we’re letting the cat out of the bag here, mucho apologies, just kinda thinking out loud.

Hit the Books Before Interviewing at Marcum

If you ever get an interview at Marcum, we suggest you break out whatever textbooks you have left, find some stimulants and cram the night before:

[My friend] had some crazy ancient partner interview her and he was talking to her and asked what her favorite grad class was and she told him one…so he wrote down 3 problems gave her code sections etc. and said i’ll be back in an hour and walked out and she was left there alone to solve them. He came back in and said i give this a B+ and then they offered her a position.

Or you could just ask the Accountant of the Decade to develop a new review course.

Nasty CEO Patrick Byrne; Blogging Is a Good Idea; Against Tax Breaks for Haiti Relief

America’s Nastiest CEO [The Big Money via Gary Weiss]
We’re still wondering if the KPMG Salt Lake City office knows what they got themselves into by taking Overstock.com on as a client.
Gary Weiss notes:

The Big Money this afternoon came out with a devastating (and gutsy) article by former Fortune writer Roddy Boyd on the corporate crime petri dish that is Overstock.com, and its nuts CEO Patrick Byrne. The title is “America’s Nastiest CEO,” and it descristematically harassed and attacked critics to cover up his own incompetence and wrongdoing–stuff that actually is a lot worse than has previously been acknowledged.

Calling all Manchester United fans [AccMan]
Dennis Howlett — never shy with his opinion — segues into an argument for blogging after noting that the Manchester United don’t need to:

There is a blog post over on Social Media Today that demonstrates as well as just about anything I’ve seen written why you should almost never listen to folk who call themselves ‘social media experts/gurus/consultants.’ Awarding itself the grand title: World’s Most Valuable Soccer Team Doesn’t Get Social Media the author proceeds to show almost zero understanding of The Beautiful Game or the people who are part of that world.


After blowing up one person’s argument for social media, DH turns the tables back to why it’s a good idea:

I have for the longest time said that professionals should write blogs. Many seem bemused by the question: we’re too busy, what would we say? we don’t want to blatantly promote, we’re not sure clients would care…the list goes on. Many talk about networking and the need for face to face meetings in order to make the kind of marketing impression they believe will win business.

In case you still think that the traditional networking is still more your speed, DH continues:

Unlike football fans, clients don’t congregate in large numbers every Saturday afternoon although they may do so in smaller numbers in industry specific associations from time to time. And of course you should be making an effort to attend those kinds of event. But in the meantime and if you are serious about running a business as opposed to a practice, then surely it makes sense to stand alongside your clients?

Have you run out of excuses for your firm having a blog?
Don’t Give Special Tax Breaks for Haiti Relief [Tax Vox]
Before everyone gets excited about the possibility of your contributions to the Red Cross, Doctors without Borders, et al. being deductible for 2009, don’t forget that many of you won’t benefit from a tax standpoint:

The proposal won’t help the two-thirds of taxpayers who take the standard deduction since it only accelerates itemized deductions. Even among itemizers, those millions of givers who are contributing $10 by text message are not going to care much about whether they can write off those few dollars this year or next.
Those who might benefit–relatively high-earning itemizers who give substantial gifts–can easily address this cash flow problem under current law. All they’d need to do is change their withholding or estimated tax payments to reflect any unusually large gifts to Haiti relief.

And not only that, what about other charities that are not subject to the timing change? Don’t they still need money?

Btw, a 2008 paper by Jon Bakija and Bradley Heim finds that higher-income taxpayers are more likely to adjust their giving to reflect changes in their after-tax cost–another reason they’d be the biggest beneficiaries of this bill. But even for them, this small temporary timing change is not likely to matter very much.
Still, some people would change their behavior, and that troubles me. Will they reduce gifts to other worthy causes in favor of newly tax-favored Haiti-related charities? Many organizations are already struggling with major recession-driven reductions in contributions and this would hurt even more.

Haiti still needs everyone’s help, no question but don’t be shocked if Congress’ latest attempt at helping out doesn’t turn out to be that helpful.

Interns – Where Are They Now That They Could Be Useful?

Thumbnail image for intern-where-is-my-report.jpgEditor’s note: This is the latest post from Daniel Braddock, your friendly Human Resources Professional. He could very well be considered a hypothetical love child of Suze Orman and Toby Flenderson. Following his varsity jacket wearing college days, he entered the consumer markets as an auditor for a Big 4 firm in New York City. He spent three brisk years as an auditor before taking the reins of stirring the HR kool-aid. He currently resides in Manhattan. Daily routines include coffee breakfasts and scotch dinners. You can follow him on Twitter @DWBraddock.
You might agree with the sentiment that now would be a fantastic time to have an extra set of hands ticking and tying through the night. Where are those lovable interns when you could actually put them to good use?
I’ll tell you where they are. They’re sitting in class or – depending when this is published – already at the bar for Tuesday’s dollar beer night. They’re getting their McStudy on, prepping for what promises to be one of the best summer internships in the job market today.
As Francine McKenna mentioned, the Big 4’s intern programs are regarded as some of the strongest. Why? It’s certainly not because the programs offer rigorous, reality-driven experiences. The bulk of interns experience your firms during the summer months; nothing like busy season. Many of you were interns yourselves, spending 8-12 weeks basking in the attractive glow of the 10-year partner track and abundance of work/life initiatives.


The fundamental purpose of an internship was – for a long time – a simple machine: offer students the ability to “test” a career in public accounting while providing H.R. with a fulltime hire “pre-screening” process. Programs have elaborated to the points of gross extreme (more about this on Thursday), but the general principle remains.
This is why I disagree with Francine’s comment that, “hiring more interns instead has big pitfalls, for both the employee and the firm.” Personally, I’d rather my firm hire its entire new fulltime class from the previous intern pool, and why the hell not? As light and fluffy as the experience is, the internship program can weed out the few incompetents that snuck through partner interviews. Of course, that’s assuming management gives half a damn and spends more than 1.7 seconds completing the H.R. performance reviews for each intern.
The root of the problem is that the “best” internship programs have lost touch with the core values of the past. Ten years ago interns were local students working part-time in order to save money for a car payment or next semester’s books. The experience was elementary but worthy nonetheless. Now, the current state of the Big 4’s programs are a product of keeping up with the Joneses. Summer months set the competitive stage for training sessions, mentorships, ball games and beers. Stir in a high paying salary (with the possibility for overtime!) and H.R. wonders where the Millennial Generation’s sense of entitlement originates. The Kool-aid is spiked with the fruits of privilege.
Don’t expect things to change anytime soon.

(UPDATE 2) We Knew Accounting Firms Were Helping Haiti

Thumbnail image for thumbs up2.jpgWe just had to ask. In response to our post from this morning we’ve received several emails about what firms have done so far in the response to the devastation that was caused by the earthquake in Haiti:
• Deloitte – The firm contributed $100,000 to the Red Cross and Deloitte professionals are encouraged to donate to either the Red Cross/International Response Fund (immediate disaster assistance) or to the United Way Worldwide Disaster Fund are for long-term relief efforts. Donations will be earmarked for Earthquake Recovery.
• Moss Adams – The Firm is matching 100% of employee contributions up to $100,000. As of today, partner and employee contributions amounted to $30,000 and the firm is matching these contributions with $30,000 donations to both the Red Cross and World Vision.
• Ernst & Young – The Firm has created the “Ernst & Young Haiti Earthquake Relief Fund” and donated to $100,000 to get things started. All the funds donated by the firm and its professionals will go directly to Save the Children, Doctors without Borders, and Partners in Health.
• BDO – Jeremy Newman posted today on his blog about the firm’s efforts, including the office in The British Virgin Islands.
• Grant Thornton – The firm is matching employee contributions up to $50,000. The funds will be donated to the Red Cross and The Salvation Army.
• McKonly & Asbury – Scott Heintzelman — The Exuberant Accountant — along with his fellow partners and employees are working with Hope International to raise funds for the relief efforts. A spokesperson for the firm told GC that the firm is expecting to raise several thousands dollars.
• Crowe Horwath – Matching employee contributions up to $50,000. All funds are going to the Red Cross and UNICEF.
Keep us updated with your firm’s efforts and we’ll continue to post them.