Tag: Communication or lack thereof

Future CFOs, Partners Best Not Check Integrity at the Door

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.

A strong moral compass can give high-potential managers a leg up the career ladder, according to the results of a recent survey.

One-third of chief financial officers (CFOs) interviewed said that, other than technical or functional expertise, integrity is what they look for most when grooming future leaders. Interpersonal and communication skills also ranked high, cited by 28 percent of respondents.

The survey was developed by Robert Half Management Resources, a provider of senior-level accounting and finance professionals on a project and interim basis. The survey was conducted by an independent research firm and includes responses from more than 1,400 CFOs from a stratified random sample of U.S. companies with 20 or more employees.


CFOs were asked, “Other than technical or functional expertise, which one of the following traits do you look for most when grooming future leaders at your organization?”

Their responses:
• Integrity – 33%
• Interpersonal/communication skills – 28%
• Initiative – 15%
• Ability to motivate others – 12%
• Business savvy – 10%
• Other/don’t know – 2%

“History has shown time and time again the importance of ethics in business – even a single lapse in judgment by one employee can significantly affect a company’s reputation and its bottom line,” said Paul McDonald, senior executive director of Robert Half Management Resources. “Leaders who are principled and forthright inspire this same behavior in their teams, creating a culture in which integrity is a core value.”

McDonald pointed out that communication skills also are requisite as executives take on greater responsibility.

“Especially during difficult periods, managers must be able to promote open, two-way communication with their teams,” McDonald said. “Executives in companies that have moved successfully through the downturn understand the importance of listening intently to feedback from employees and are always on the lookout for this skill in potential leaders.”

Accounting News Roundup: AIG Rolls Out Repayment Plan; Wal-Mart Names New CFO; IRS Files Lien Against Sharpton | 09.30.10

AIG to Convert Preferred Shares Into Common to Repay U.S. [Bloomberg]
“American International Group Inc. agreed with U.S. regulators to repay its bailout by converting the government’s holdings into common shares for sale, a step toward independence for the insurer whose near collapse two years ago threatened the global economy.

The U.S. Treasury Department will convert its preferred stake of about $49.1 billion for 1.66 billion shares of common stock and then sell the holdings in the open market, AIG said today in a statement. Common shareholders, who hold about 20 percent of the company, will have their stake dilutent, the insurer said. Those investors will receive as many as 75 million warrants with a strike price of $45.”

Spain loses AAA status, stands firm on austerity [Reuters]
“Spain lost its final top-line debt rating on Thursday as the government sought backing from lawmakers for a budget it hopes will be austere enough to convince markets it can slash the deficit at a time of economic weakness.

Moody’s become the third and last rating agency to cut Spain out of the highest AAA category which has helped it finance its debt relatively cheaply. The one-notch cut had been expected and the agency said it hoped not to have to cut again soon, bolstering Spanish debt markets.

But the agency also said a poor growth outlook meant Madrid would have to take further steps to meet its deficit targets in years to come. The Bank of Spain said a sluggish recovery would slow further in the third quarter.”

IASB head knows all about cross-channel frictions [FT]
“In a decade spent overseeing international accounting standards, Sir David Tweedie has become an amateur student of French psychology.

The Scot has locked horns with France several times as head of the International Accounting Standards Board, the body that sets the International Financial Reporting Standards rules followed in the European Union and other countries.

His fascination for his adversary is such that he recently thrust into my hands an academic paper entitled “France and the ‘Anglo-Saxon’ Model: Contemporary and Historical Perspectives”. The article explores the hostility often felt in France towards the British and American way of doing business.”

McDonald’s May Drop Health Plan [WSJ]
“While many restaurants don’t offer health coverage, McDonald’s provides mini-med plans for workers at 10,500 U.S. locations, most of them franchised. A single worker can pay $14 a week for a plan that caps annual benefits at $2,000, or about $32 a week to get coverage up to $10,000 a year.

Last week, a senior McDonald’s official informed the Department of Health and Human Services that the restaurant chain’s insurer won’t meet a 2011 requirement to spend at least 80% to 85% of its premium revenue on medical care.”


Wal-Mart picks successor to longtime CFO [Reuters]
“Wal-Mart Stores Inc (WMT.N) named Charles Holley to succeed Chief Financial Officer Tom Schoewe, who will retire on November 30.

The world’s biggest retailer said on Wednesday that Schoewe, 57, will stay at Wal-Mart until January 31 to help with the transition.

Holley, 54, joined Wal-Mart in 1994 and is treasurer and executive vice president of finance.

Those credentials should make him a capable CFO, said Wall Street Strategies analyst Brian Sozzi, though Wall Street could view the transition negatively since it adds uncertainty.”

All We Are Saying Is Give Dick Fuld a Chance [Jonathan Weil/Bloomberg]
Names being floated to replace Larry Summers as the National Economic Council include Citigroup Chairman Dick Parsons and Xerox CEO Anne Mulcahy. Jonathan Weil sees where Obama is going with this:

“There’s much we can learn about the kind of person the president is looking for by studying these two contenders’ credentials. In addition to CEO chops, it seems Obama is seeking someone who also has served on the board of directors of at least one company that either had a massive accounting scandal, blew up so spectacularly that it threatened to take down the global financial system, or both.”

…and doesn’t think he’s aiming high enough. He has some of his own suggestions.

Memo to Media Departments: Here Are Three Ways to Make My Job Easier – rebuttal [AccMan]
Dennis Howlett’s rebuttal to Adrienne’s plea to PR types.

Sharpton faced with fresh tax woe [Tax Watchdog]
The Rev. owes around $538k to the IRS for 2009. His lawyer is a tad confused by the whole thing and says everything will paid up by Oct. 15th.

Memo to Media Departments: Here Are Three Ways to Make My Job Easier

I’m not going to name names since that doesn’t seem to go over well but I have a bone to pick and think this is the perfect platform for doing so. In case you aren’t paying attention, I tend to use real-world examples to form my suggestions on what to do (or more often than not what not to do) in social media and this time I need to air a complaint about some industry “professionals” who aren’t playing the game right.

Again, no names so don’t ask and if you’re wondering if I mean you, I probably do.

I’m referring specifically to media def attempts on my part to connect with them and get their news out here on Going Concern and Jr. Deputy Accountant. The JDA blow offs I can almost understand but when I come right with a proposition and offer them a coveted spot among the PwC rebranding whine dump and salary news here on GC and they completely ignore it, I get pissed.

Therefore, helpful sort that I am, I’m offering three ways YOU, accounting industry media person, can make MY job easier:


1. Respond When I write you an email inviting you to participate in an interview, survey, ribbing, etc., a response would be nice either way though I obviously appreciate a “yes” far more than a “are you kidding me?” Regardless of whether or not you would like to participate, the least you can do is respond. I know you’re busy, we’re all busy, no one expects you to answer me 4 minutes after I’ve sent the email but a courtesy response would be awesome. I’m not asking a lot. I’m giving you a chance to participate in something awesome and trust me, I wouldn’t waste my own time so I don’t expect you to waste yours.

2. Don’t be scared I’m not sure what it is or why people seem to perceive my brand as hostile but I’m really not as hostile as it seems if you actually talk to me. It amazes me that some industry professionals think Going Concern is hostile and incendiary as well! Seriously?! We hardly swear and cover accounting news, how threatening can we be? Apparently quite. I can’t speak for Caleb but I’ve been blocked. And ignored. Whatever, it’s not about my ego, it’s about me inviting you to take a seat at our conversation and you running the other direction.

3. Wake up! If you are going to start A) a campaign and/or B) a Twitter account, please expect that I’m going to find it and possibly come ask you questions about it. As a media professional, it’s sort of expected that you’ll be excited to offer me the information I seek so I can share it with our readers or at least be able to point me to some press release that accomplishes the same without you having to talk to me. It doesn’t matter if you disagree with my opinion on Ben Bernanke being a massive douchebag or if you are offended by my liberal use of the F-word on my own turf, this is about the industry. We know for a fact that some industry professionals wish Going Concern would expire and drop off the Internet but let’s be real, it isn’t happening so you’d be smart by embracing it instead of fighting it. Like it or not, we’re the future of the industry. Suck it.

I swear we don’t bite (Caleb might but you’ll have to ask him to be sure) and we’ve proven that we here at Going Concern hold ourselves to an exceptionally high standard of ethical behavior when it comes to sources, interviews and communications with industry professionals. So I don’t know where the fear is coming from but seriously, answer your damn emails.

Accountants Still Can’t Not Write Good…or: Improving the Communication Skills of Students

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.

“I am not good at writing. I want to be an accounting major so I don’t have to write.”

All of us who teach or advise students have heard this – our students’ dislike for writing papers. These students are under the false impression that accountants do not have to write, or at least not much.

Frequently, our students do not realize that written communication skills are essentiaprofession. As a matter of fact, communication skills are one of the five core competencies outlined in the CPA Vision Project, tested on the CPA Exam and demanded by employers.


The CPA Vision Project

The CPA Vision Project of the American Institute of CPAs (AICPA) addresses issues we must tackle to keep up with the challenges facing the profession. To remain competitive, CPAs need to demonstrate five core values and five core competencies.

One of the top five core competencies, Communication and Leadership Skills, is the ability to “give and exchange information within meaningful context and with appropriate delivery and interpersonal skills.” These core values and competencies are instrumental in providing the five core services outlined in the CPA Vision Project: Assurance and Information Integrity, Management Consulting and Performance Management, Technology Services, Financial Planning, and International Services.

If we want our students to offer these five core services efficiently and effectively, accounting classes must incorporate the ability to communicate well as a learning objective.

Writing on the CPA Exam

So what about the CPA Exam? Is the profession testing communication skills on the Exam? Yes.

The CPA Exam requires candidates to demonstrate their writing skills. Currently, CPA applicants complete constructed responses on the Auditing (AUD), Regulation (REG), and Financial Accounting and Reporting (FAR) sections of the exam.

With the introduction of the new CPA Exam format (CBT-e) in 2011, writing will remain an important part. However, instead of testing writing skills in AUD, REG, and FAR, the constructed response portion of the exam will be entirely tested in BEC (Business Environment and Concepts). Starting in 2011, CPA candidates will write three essays in BEC.

Entry-level accountants lack written communication skills

The CPA Vision Project demands communication skills and the CPA Exam tests them. Does that mean employers of new CPAs are pleased with new CPAs’ writing skills? No. Many employers of recent accounting graduates complain that their new employees do not possess the requisite writing skills. While our students may have strong technical skills, their written communication is often ineffective and poor.

In addition, accountants are spending less time on gathering, processing, and reporting information, and more time on interpretation and providing strategy and decision support. Accountants prepare notes to financial statements, interdepartmental memos, plans, and proposal communications with various stakeholders, written personnel evaluations, and articles in professional journals.

According to an article in The Trusted Professional, one-third of the accounting firms surveyed are unhappy with accountants’ writing skills. Correctly using grammar, organizing information, and writing clearly, concisely, and completely are necessary for business writing. In the worst case, poor writing skills can lead to dismissal of the accountant or inability to rise to higher managerial levels in the organization.

Because of the CPA Exam requirement and the needs of future employers, writing in accounting classes is an important part of many schools’ accounting curricula.

Communication: The business of accounting

Accounting is much more than financial statements and debits and credits. Properly and broadly understood, accounting is all about communication. Written and oral communication gives the numbers meaning, context, and focus on a decision.

We need to continue working on improving the writing skills of entry-level accountants, but these skills must be further reinforced once students enter the workplace. Firm training and management programs in which writing is given a high level of consciousness and priority will help ensure users have the best product available.

About the authors:
Gabriele Lingenfelter, CPA, teaches accounting and auditing for the Luter College of Business and Leadership at Christopher Newport University in Newport News. Lingenfelter is actively involved on the American Institute of CPAs (AICPA) Audit & Attestation Subcommittee and the development of future CPA Exams. She also is a member of the VSCPA Editorial Task Force. Contact her at gabriele@cnu.edu.

Phil Umansky, CPA, Ph.D., is associate professor of business at the Sydney Lewis School of Business at Virginia Union University and chairman of the Accounting and Finance Department. Umansky is a CPA Ambassador, a regular contributor to the WTVR Virginia This Morning TV Show on money management topics, and a member of the VSCPA Editorial Task Force. Contact him at pumansky@vuu.edu.