Going Concern

Career Center

PwC Reject Wants to Know If Making Another Run at the Firm Is a Good Idea

Caleb Newquist
November 3, 2010

Welcome to the Hump Day edition of Accounting Career Couch (or as Adrienne puts it, “advice from a bunch of asshole accountants”). Today we have a PwC reject who is going back for round two. Does previous rejection mean that P. Dubs has its mind up about how big of a loser you are? Maybe!

Feeling rejected and looking job soon? Unhappy at your current firm who doesn’t provide any training to turn the frown upside down? Need some advice on to get your co-workers to loosen up? Email us at advice@goingconcern.com and we’ll make everyone happy.

Returning to our glutton for punishment:

Dear Going Concern:

I interviewed earlier this year for a full time tax position with PwC. I made it to the final round and was given an office tour, lunch, 3 interviews and all that good stuff. Unfortunately, I did not receive an offer.

It is now the fall on campus recruiting season and again I am applying for a full time tax position with PwC. The lead recruiter already knows me from the recruiting process earlier this year. I’ve managed to speak with him once already at an on campus event and will see him at a career fair again next week. My question is can the fact that I’ve been rejected earlier this year hurt me in my attempt to get another interview and hopefully a full time offer. I plan on asking the recruiter this question next week but I get the feeling he will tell me that it’s okay and it won’t hurt me in anyway. However, being the cynical and skeptical person that I am, I need some perspective.

Dear Cynical and Skeptical,

Dealing with rejection, eh? Lots of that going around today. Unlike the Democrats, you have done nothing wrong. You made it to the very end and you simply didn’t make the cut. That happens. However, you are taking it in stride (not cursing PwC, blamestorming, etc.) although you are carrying the standard neurosis that comes with said rejection.

Your previous rejection by PwC should not dissuade you from your chances at a job with the firm. For whatever reason unbeknownst to you, the firm passed you over. It’s likely that it was a difficult decision on their part and your interest in the firm will be seen as a positive.

We understand that somewhere in your head, you’re thinking that the firm was just toying with you. Stringing you along, only to crush your Big 4 dreams at the last minute. The only scenario we can foresee where this would be a reality is if a recruiter/partner had the hots for you and eventually their belief in your “talents” were overruled. Fortunately, the odds of this being reality are slim.

So make another run at P. Dubs, reiterating your interest in the firm, reminding them why you’ll be a kick-ass associate and what you’ve done in the last few months that will get them hot for you all over again. Taking the “You made a biggest mistake of your life” is probably not the way to go, but a subtle hint at why you are everything they want and more may get them to see the error of their ways.

News

Three Accountants Won Big on Election Day, One Huge Loss and One Race Still Undecided

Caleb Newquist
November 3, 2010

A quick rundown of the results on the races we told you about yesterday.

• Wisconsin – Ron Johnson won handily over Russ Feingold disappointing liberals like ATL Editor Elie Mystal and served as a pleasant surprise to libertarians like Adrienne who texted us, “WHOA Feingold got taken out in Wisconsin!! I never thought I would see that.”

• South Carolina – Nikki Haley won over Vinny Sheheen. She will be the first female governor in the Palmetto State’s history.

• New York – Joe DioGuardi got trounced by Kirsten Gillibrand who got over 60% of the vote. Harry Reid is double-relieved.

• Michigan – Rick “One Tough Nerd” Snyder cruised to victory over Virg Bernero in the governor’s race, winning by approximately 20 points.

• Virginia – The one race that is still ongoing is in Virginia’s 11th Congressional District between Gerry Connolly and KPMG alum Keith Fimian. The Wall St. Journal reports, “Connolly is leading by 487 votes. Mr. Connolly has 49.2% of the vote, while Mr. Fimian, who lost narrowly to Mr. Connolly in 2008, has 49%,” and Fimian is confident that he’ll be declared the winner.

So for those keeping score, accountants (all GOP, not surprisingly) are 3-1 with one race still too close to call. We’ll be watching the VA11 race until the bitter, bitter end.

Ernst & Young Employee Disappointed with Boston Office’s Party Planning, Lack of Boozehounds

Caleb Newquist
November 3, 2010

From the mailbag:

EY Boston Tax had their end of busy season party last week. On Tuesday, we had beer and wine in the office. Considering everyone had to work through the first football sunday of the year, the least they could do is get us drunk on a Thursday so we can enjoy ourselves. Who’s gonna get drunk in the office on a Tuesday? [Ed. note: show of hands?]

I have to say I’m disappointed with the social/drinking scene at this place compared to other Big 4s in this market. Pretty stiff, but I feel like the firm takes pride in that–I have no idea why.

Without the proper context, it’s difficult to know what kind of a drinker our tipster is. If he/she is merely a two wines/beers and out person then E&Y Boston is really bucking the trend in that fair city. However, if the tipster is Charlie Sheen, then there’s no cause for concern.

Any Bostonians familiar with the situation are invited to elaborate on the Big 4/next tier drinking scene below or share with us directly.

Do Women In Accounting Get the Shaft When It Comes to Pay?

Adrienne Gonzalez
November 3, 2010

Ed. note: delirious from a cross-country move this past week, AG mistakenly switched around percentages. This has been corrected and she will be meditating on the matter hoping for forgiveness.

A recent Mergis Group survey reveals 47 percent of women in accounting are ~~less than~~ content with compensation and the always popular with the ladies work-life balance, leaving us scratching our heads wondering who these 47 percent are (we already know plenty of the 53%). If any of you are in that group or know someone who is, please get in touch, we’re desperate to connect with a woman in accounting who actually feels appropriately compensated for her work and redeemed by the challenges of her career while rewarded with a perfect balance of work and family. Seriously. Anybody?

Anyway, the details from the survey if you are still interested:

Women are less satisfied with the progression of their accounting and finance careers than men. Specifically, 60 percent of male workers in accounting and finance consider themselves to be satisfied, as opposed to 47 percent of women.

Women in accounting and finance ranked being challenged (31 percent), compensation (25 percent) and flexibility (15 percent) as the most important factors to satisfaction in their career.

On the other hand, men in accounting and finance ranked compensation (32 percent), being challenged 26 percent) and flexibility (15 percent) as the most important factors to satisfaction in their career.

Mergis breaks down these results further, pointing out that women in accounting and finance are more than generally upset with the challenges and opportunities offered to them. Hey, they don’t say “it’s a man’s world” for nothing.

“Based on the findings of our Women in Finance survey, more than half of the women surveyed are dissatisfied with the progression of their careers and nearly three-quarters believe they face a separate set of professional challenges in comparison to their male counterparts,” stated Patricia Dinunzio, regional managing director of The Mergis Group. “While there are certainly many different viewpoints in how workers in general define career satisfaction and success , it is interesting to note that both men and women are highly likely to recommend the profession to others. One of the greatest take-aways from this survey is that there is a clear need for mentorship programs within the profession. It is our personal and professional responsibility to enable existing and future accounting and finance professionals to achieve their full career potential. Doing so will only contribute to the future development of the profession.”

My 2¢? The profession – and your career – is what you make of it. Mentors don’t just come along and decide to kick down their knowledge, you’ve got to get out there and find one. We don’t need the AICPA to set up play dates with young CPAs and OGs of the industry in order to accomplish this; instead need to take matters into our own hands if we are upset with how things are working out at the moment. In other words, get off your lazy ass and stop expecting everything to be handed to you, go out and get it if you don’t think you have enough of it.

The disparity is greater between generations than the sexes if you ask me but who is asking me?

Full survey results and methodology may be found here. As always, you are welcome to submit your opinion on surveyed subjects in the comments.

Accounting News Roundup: GOP Has Marching Orders from Big Business; State Tax Initiative Results; GM Looking at Huge Tax Break | 11.03.10

Caleb Newquist
November 3, 2010

Business Looks to Republicans to Block Rules, Taxes [Bloomberg]
The Republican gains in Congress mean U.S. companies from Goldman Sachs Group Inc. to Wellpoint Inc. may be able to weaken or block what they consider President Barack Obama’s anti-business policies on health care, the environment, taxes and financial reform.

Republicans will use their perch as the new majority in the House of Representatives to try to eliminate funding for parts of Obama’s health care bill opposed by business as well as curb regulations and government spending, Jay Timmons, senior vice president of the National Association of Manufacturerd lobbying group, said in an interview before the election.

PwC Completes Acquisition of Diamond Management & Technology Consultants, Inc. [PR Newswire]
wC US has completed its acquisition of Diamond Management & Technology Consultants, Inc. following approval today from Diamond’s shareholders. Per the terms of the agreement, all outstanding shares of Diamond were acquired for $12.50 per share in cash.

The Complete Idiot’s Guide to Why Democrats Lost [HuffPo]
For the less-politically inclined.

With Recent Change, GAAP, IFRS Differ on How to Treat Debt [A&A Update/Compliance Week]
The International Accounting Standards Board recently finalized a change in International Financial Reporting Standards that tells companies to measure most liabilities at amortized cost, or the historical cost written down over time based on a schedule. Where a company might exercise an option to measure a liability at fair value, any changes in value would flow to equity via the “other comprehensive income” section of the income statement rather than profit and loss.

Major State Tax-Related Election Results [Tax Foundation]
Among them, Prop 19 (aka legalizing pot and taxing the hell out of it) failed.

Election 2010: What the Democratic Debacle Means for Fiscal Policy [TaxVox]
Washington is divided into two camps—those who believe divided government will open the door to compromise on tough fiscal issues, and those who don’t. Put me squarely in the second camp. We are already hearing conflicting messages from both President Obama and House Speaker-to-be John Boehner (R-OH). They give lip service to “working together” and the need for deficit reduction, but will do little of either. Here are five reasons why:

Frank reelected to 16th term [On the Money/The Hill]
But will lose the HFSC Chairmanship. Bob Herz might be enjoying this more than anyone.

GM Could Be Free of Taxes for Years [WSJ]
General Motors Co. will drive away from its U.S.-government-financed restructuring with a final gift in its trunk: a tax break that could be worth as much as $45 billion.

Knicks Postpone Home Game Before Tests Reveal No Threat From Absestos [Bloomberg]
All clear!

Quote of the Day

Wanted: Big Brothers, Big Sisters for Accountants

Caleb Newquist
November 3, 2010

One of the main reasons [for dissatisfaction] is a lack of role models. Half of female respondents said there aren’t enough women at the top to look up to in top management, while only a third of men complained that there aren’t enough males. On the topic of mentors, however, both sexes feel there aren’t enough of them. More than two thirds of both genders said they haven’t had or currently do not have a mentor to support their career. [FINS]

CFOs

Survey: CFOs Wouldn’t Turn Away Some Help with Their Clerical Work

GoingConcern
November 3, 2010

The following post is republished from AccountingWEB, a source of accounting news, information, tips, tools, resources and insight — everything you need to help you prosper and enjoy the accounting profession.

If financial executives could get one thing off their plates, it would be administrative tasks, according to a recent survey by Robert Half Management Resources.

More than one-third (38 percent) of chief financial officers (CFOs) interviewed said that if they could eliminate one responsibility, it would be basic clerical and administrative work.

“Today’s less extends to all levels of the organization,” Paul McDonald, senior executive director of Robert Half Management Resources, said of the survey results.

“At small and mid-size companies, in particular, this often means financial executives have had to take on tasks once handled by others,” McDonald said. “The demands of the current economic environment make it even more essential for senior-level managers to use their time wisely.”

CFOs were asked, “If there was one responsibility you could hand off from your job, what would it be?”

• Basic clerical/administrative – 38%
• Accounting-related – 19%
• Human resources-related – 14%
• Managing – 7%
• Operations-related – 3%
• Interactions with vendors – 1%
• Nothing – 8%
• Other – 10%

The survey was developed by Robert Half Management Resources, a provider of senior-level accounting and finance professionals on a project and interim basis. It was conducted by an independent research firm and includes responses from 795 CFOs from a stratified random sample of U.S. companies with 20 or more employees.

Robert Half Management Resources offers executives six tips for maximizing their time:

1. Set realistic expectations – High standards are a must, but setting impractical goals can cause frustration and waste valuable time. When initiating a project, consider what you would like to achieve if resources and time were unlimited. Then determine what can reasonably be accomplished considering available resources and other priorities.

2. Don’t procrastinate – It’s tempting to postpone less challenging assignments for more exciting initiatives, but it can backfire if projects start to stack up. Procrastination strains working relationships and creates unnecessary stress as everyone strives to catch up.

3. Delegate – Distribute more routine tasks to other staff members. Look for opportunities that allow your top performers to gain visibility and build their expertise and decision-making skills.

4. Keep meetings on track – Distribute a detailed agenda prior to the discussion so everyone is prepared. Meetings should begin and end on time. If information can be easily covered in e-mail or phone, a meeting might not be warranted.

5. Bring in help – If you and your team are overloaded, consider bringing in outside support during peak activity periods or for large-scale initiatives that are finite in nature.

6. Recharge – Financial executives are accustomed to long hours and demanding work, but that doesn’t mean they should sacrifice breaks and vacation. Scheduling time for even a short respite can restore energy and a sense of control.

About Robert Half Management Resources:
Robert Half Management Resources is a provider of senior-level accounting and finance professionals to supplement companies’ project and interim staffing needs. The company has more than 145 locations worldwide and offers online job search services at www.roberthalfmr.com. Follow Robert Half Management Resources at twitter.com/roberthalfmr for workplace news.

KPMG

Unhappy KPMG Employees Need to Quit Making Excuses

Caleb Newquist
November 2, 2010

Like every company out there, KPMG has its share of unhappy people. It’s unavoidable when people are working long hours, have random employees emailing colleagues and your boss’s alma mater can’t field a decent football team.

But it was recently brought to our attention that despite the Kranky Klynveldians out there, KPMG was recently recognized by Forbes as one of America’s Happiest Companies.

Yes, it’s true! The list is alphabetical but it only features ten companies so you know this isn’t one of those catch-all lists that just gets thrown together. Seriously, the firm is on their with Google and Zappos, two of the most notoriously nauseatingly gleeful companies on the planet.

But why is KPMG one of the hap, hap, happiest? Simple. It comes down to education. From Forbes’s list:

[The Company] [i]nvests in happiness training; allows employees to take partially paid leaves for up to 12 weeks; encourages flexible scheduling and formal mentoring programs.

So the bottom line is that if you work at KPMG and you’re unhappy, you’ve got no one to blame but yourself. Money be damned. Get your ass to happiness training, take copious notes and you’ll be whistling to work in no time.

Ernst & Young: Hedge Funds Like Us! They Really Like Us!

Caleb Newquist
November 2, 2010

A source informs us that this is hardly surprise as E&Y has some the best known shops as clients including SAC Capital, Third Point, Anchorage Capital Partners, Reservoir Capital Group and Pershing Square. Although the HF honchos still appreciate the recognition:

“Receiving this award is a testament to Ernst & Young’s 25-year commitment to serving hedge funds through every phase of their business – from starting up through investment, global expansion and going public,” said Art Tully, Co-leader, Global Hedge Fund Practice, Ernst & Young LLP. “Since we began serving the alternative investments industry more than two decades ago, our seasoned professionals have worked to help hedge fund clients anticipate and meet new regulatory, transactional, accounting, tax, technology, operations and investor demands.”

“Ernst & Young’s hedge fund practice was founded on start-ups. In 2009, we audited the most significant share of the top 25 fund launches in 2009,” said Mike Serota, Co-leader, Global Hedge Fund Practice, Ernst & Young LLP. “As these organizations continue to evolve and expand, we can support their evolving needs through our extensive portfolio of services.”

E&Y is two for two in Hedge Fund Manager Week’s Best Accounting Firm Category so it’s a little early for any “dynasty” rhetoric but they seem to have a decent hold on things.

Some People Are Wondering When/If KPMG and Ernst & Young Will Ante Up

Caleb Newquist
November 2, 2010

From the mailbag, courtesy of an E&Y senior associate:

I work for EY. Roommates are Deloitte and PWC. I’m hearing from the PWC employees that in addition to a holiday bonus, as well as a March compensation adjustment similar to Deloitte’s, PWC is also giving their employees the last two weeks of December off without requiring them to use their vacation days.

Thoughts on whether EY or KPMG will ante up? Hot topic at my client site today as you can imagine 🙂

Before we get to E&Y and KPMG, it should be noted that PwC is really playing hardball here. A quick recap:

• Mid-year bonuses that include an option for an iPad. Steve Jobs hater or not – that’s a cool bonus.

• Rumors of poaching seniors in Chicago and New York.

• New Yorkers given the option to shovel Thanksgiving sustenance at a Manhattan location to be named later (btw, we really want to know where, so get in touch with details when known).

• iPhones are now available and Christmaskuh festivities return.

Now there are rumors of a merit increase in March and two free weeks of time off? This is quite the run of employer gratitude. We won’t say “unprecedented” but it is an impressive show of generosity.

Maybe PwC has gone on this offensive because they had a kick-ass first quarter. Or maybe it’s because they lost the number one spot to Deloitte and they still want everyone to know that they’re still capable of equating love with money. OR maybe they’re trying to make people forget about Logogate. Whatever the motivation, the firm is throwing money around with the gusto of Charlie Sheen and they are getting a relative amount of attention for it.

Now, then – Ernst & Young and KPMG. Maybe these two firms are spreading the wealth on the Double-DL but if not, TPTB have to be aware of the what the competition is up to. If not, maybe someone should clue them in. Regardless, there has to be heat to act in some way.

One explanation for the House of Klynveld is that the fiscal year just ended, so it is too early for leadership to communicate “the great first quarter,” thus rationalizing a mid-year bonus. If KPMG comes out to soon with the news, they risk the “Monkey see” effect.

As far as E&Y is concerned, we’re stumped. They have the same fiscal year as PwC and should have a pret-tay good idea how Q1 went. Now that PwC has made the first move, any action by E&Y is going to look reactionary .

So for the E&Y and KPMG crowd – you clearly have some expectations for something but are you hearing anything about mid-year bonuses or will the belly aching continue into the holidays? Discuss below and get in touch with details.

News

The Guy Responsible for Informing Us About Christine O’Donnell’s Pubic Hair Was an Auditor at the Federal Reserve

Caleb Newquist
November 2, 2010

We’re just catching up to this little twist in the story so keep your pieholes shut. Plus, it’s election day, making it completely appropriate.

Hard to believe that it was just last Thursday when the anonymous first-hand account of a sexless one-night stand with Senate candidate Christine O’Donnell was published over Gawker, grooming details included.

Aside from Christine O’Donnell’s stance on masturbation, witchcraft and her inability to assign anyone to fill out a postcard for her nonprofit organization, we could have done without this particular exposé. An anonymous douche probably thought he would make off with Gawker’s ‘low four figure’ sum and he would be an anonymous anti-tea party hero.

The Smoking Gun immediately was on the case to identify the pube peeker in question and it really didn’t take much effort on their part, as they came to a pretty solid conclusion late on Thursday after speaking with the author’s former roommate, Brad Kursiko:

While Kurisko refused to out “Anonymous,” some online activity this evening may point to the author’s identity. Shortly after his last phone conversation with a TSG reporter, a single name disappeared from Kurisko’s list of Facebook friends.

The man with whom electronic ties were abruptly cut is Dustin Dominiak, a 28-year-old buddy who attended Albion College with Kurisko. Records show that Dominiak has previously shared a Philadelphia address with Kurisko. One online posting reports that Dominiak, a Michigan native, has worked as an auditor at the Federal Reserve in Philadelphia.

TSG finally got Kurisko to confirm Dominiak as the blathering broheim, thus providing him with the unenviable distinction of being “that guy who wrote about Christine O’Donnell’s pubes.” Especially if she manages to pull off the huge upset today.

But more interestingly this whole story has only reiterated our contention that the sex lives of accountants (and by extension, auditors) is completely random and scattered. This particular encounter – Senate candidates and their grooming habits; Philly Fed auditors that will do anything for a buck – might be the apex of the theory.

On The Trail Of “Anonymous,” Christine O’Donnell’s Sex-Free Pal [TSG via DI]

CPA Exam

Will You Need New CPA Exam Materials In 2011?

Adrienne Gonzalez
November 2, 2010

As many of you know, some parts of the CPA exam are changing significantly in 2011 though don’t listen to the rumors that say everything is changing profoundly. If you sit for the exam before 2010 and sit again in early 2011, chances are you will recognize much of the content and format of the exam beyond the few changes. We’ve covered those here before, feel free to check out our previous CPA exam posts for more detail.

Anyway, a lot of you are wondering if you should purchase CPA exam review materials now and if you do how you will handle the new material in 2011.

If you’ve done your homework, you’ve found a CPA review course that offers updated material at no additional charge. This could be in the form of split shipments, updates to books or new books altogether depending on whose program you have sunk your hard-earned money into. If you are unsure whether your course offers these or if you are still shopping around for a review, be sure to ask before committing as some providers could end up charging you for new materials.

Keep in mind, however, that much of what is being tested currently will still be tested in 2011, even in areas like FAR and AUD that are getting a significant amount of new international material added to them. If you read too many misinformed forum posts, you might be under the impression that 2010 material is completely and totally irrelevant in 2011 and that studying from these materials will mean guaranteed failure on the exam. That is simply not true. Of course it is a good idea to also study from whatever updates you might receive to 2010 materials if you are sitting in 2011 but it is not worth panicking over nor delaying your studying because you are holding out for brand new 2011 information.

The AICPA Board of Examiners is not about to throw away their precious bank of tried and true CPA exam questions, even though they are anxious to add new international content to that mix. Much of what CPAs have been tested on for the last 6 years will still be relevant next year and there is no need to hold a giant 2010 CPA review book bonfire to eliminate old, outdated content.

You will definitely want to get access to any material updates if you are allowed them by your review course but please, don’t burn books or run out and get all new materials just because you are afraid of being left behind in 2011. Debits still go on the left, even under IFRS.

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