Tag: McGladrey

What Can a Big City Big 4 Auditor Expect at Small City, Second-tier Firm?

Back with another edition of “Decide My Life for Me – Public Accounting Edition.” Today, an antsy Big 4 employee in a large city wants to know if moving to second-tier firm in small city will mean a demotion or cut in salary.

Do you have trouble matching your socks? Need help making sense of your cryptic performance review? Are you worried that someone with a bun in the oven is also capable of doing their job? Email us at advice@goingconcern.com and someone will try to straighten you out.

Back to our “Should I Stay or Should I Go” du jour:

Hi,

I was curious if you had any information on employees jumping from Big 4 firms (auditing) to upper-mid-tier (i.e. McGladrey). Do you find that they are often promoted? I am currently in a large city and am uninterested in staying in the city long-term. I was thinking of moving to a 300,000 person city with some firms like McGladrey, Grant Thornton, etc. If I am jumping ship as a senior or manager, where should I expect to come in at? Same level? Same salary?

Thanks
Jumper

Dear Jumper,


Had it with Big 4 life, eh? Let me guess, the groupies got to you, didn’t they? Every damn time.

As to your inquiry, here’s the deal – you won’t be promoted if you decide to accept a position with McGladrey or Grant Thornton. Why? There are a few reasons: 1) You don’t have the experience; 2) You don’t have the experience; 3) You don’t have the experience. We all know that Big 4 auditors think they’re pretty special and that anyone who doesn’t soil themselves after looking at their stellar résumés followed by an immediate job offer is simply stupid. So it comes as a shock to many when this scenario doesn’t play out. As far as second-tier firms go, they definitely want Big 4 talent when they can get it but they’re aren’t about to throw you a bone because you worked at E&Y Chicago or PwC New York.

What you can expect – if you’re senior associate or a manager at a Big 4 firm, you can reasonably expect to be offered (not a guarantee, obv) a similar position at GT or Mickey G’s that you currently have. If you’re moving to a smaller city, you could see a similar salary but you should not expect a raise. You’ll receive the market rate for your position in your new city. The firm may put you at the high range of pay for your group but be prepared to be reminded of that fact come merit increase time.

Anyone made a similar move with different results? Share below.

Analysis: If Your Accounting Firm Was a College Football Team

Pack up your white pants and seersucker suits – Labor Day has come and gone which means only one (actually important) thing: college football is back. You NFL loving freaks can have your Sundays of Hollywood-produced sport; I believe the good Lord created Sundays solely as a recovery day for college football fans. Well, for that and drunk brunches, of course.

It is no secret that good ol’ Caleb is a vehement Husker fan,he only reason he’s given me the green light to churn out a post comparing your respective accounting firms to the likes of fried-butter-eating college football fanatics.

I can only pray that my effort will inspire the semi-regular infusion of sport, accounting, and bantering commenters around here, so I give you the “Accounting Firms If They Were A College Football Program” top nine rankings. Grab your body paint and come along for the tailgate.


Firm: Deloitte
Team: Oklahoma Sooners
First Take: Both are always in title contention but seem to shit the bed come Pay Day. Deloitte raises are on par with the Sooners’ BCS bowl record under Coach Bob Stoops (2-8).
Keep it in the Family: During Hurricane Irene, Deloitte encouraged employees to bunk up together, obviously a practice long in use in Oklahoma.
Sputter, Sputter: Sooner alum Blake Griffin jumped over a KIA at last year’s NBA slam dunk contest. A certain Deloitte consultant also prefers a certain overused and washed out mode of transportation…

Firm: PwC
Team: Oregon Ducks
First Take: They’re in the news for legit (raises, hurry-up offense) and controversial (fireside chats, BCS infractions) more often than you’d like. Also, their team colors are atrocious.
Hotties Everywhere: PDubs has Ireland. The Ducks have these ladies.
Just Pick One Already: PwC doesn’t churn out new logo/uniform re-designs as often as the Ducks but both cause a stir when they do. Whether the changes for either team result in better winnings has yet to be seen.

Firm: Ernst & Young
Team: Ohio State Buckeyes
First Take: You hate going up against them, but even if they do win, you’re thankful you’re not affiliated with their alumni.
Compliance? What Compliance? Former coach Jim Tressell thought it best to let a tattoos-for-autographs program run its course. E&Y is apparently doing the same with this minor Sino-Forest sitch.
Questionable Mascots: The poisonous nuts of the Midwest are no match for the Black & Yellow guy.

Firm: KPMG
Team: Notre Dame Fighting Irish
First Take: Still talking about that big win in 1983. An exodus of leadership. The general public has gone from loathing them to just feeling bad for them. Give it up, you’re no longer the powerhouse you (thought you) once were.
Johnny Be Good. The Chairman is also a proud ND alum. Need we say more?
Empty Promises: We’re going to win it all! We’re going to hire thousands!

Firm: Grant Thornton
Team: Northwestern Wildcats
First Take: As hard you they try to be tough, they’re still nerds dressed in purple.
Off-the-Mark Advertising: GT – the lack of aligned teeth took some bite out of your full-page WSJ ad. And Dan Persa for Heisman – really? Your mom for Heisman.

Firm: Rothstein Kass
Team: Boise State Broncos
First Take: First it was a feel-good story but their continued rise through the ranks is pissing off the traditionalists.
The-Anybody-But-The-Other-Guy- Vote: Whether it was Boise’s ridiculously fantastic win over Oklahoma years ago in the Fiesta Bowl or RK’s dominance in the Going Concern March Madness pool, oftentimes their fan support stemmed from us just hating their competition more.

Firm: McGladrey
Team: Missouri Tigers
Only Take: You’re supposed to be on this list; we know you belong on this list; we don’t know what you’ve done to deserve being on this list.

Firm: BDO
Team: Penn State Nittany Lions
First Take: Your parents would have been pleased if you went there but better options awaited you.
Race to the Retirement Home: JoePa is 84 and coaching from the press box. Rumor has it Jack Weisbaum calls the shots from his personal tanning bed.

Firm: CBIZ/Mayer Hoffman McCann
Team: University Buffalo Bulls
Only Take: You think you’re a big deal, but really everyone uses you as an exhibition punching bag.

How’d we do? What team best parodies your firm? Share it in the comments below.

H&R Block Was Pretty Eager to Dump RSM McGladrey

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This morning we learned that H&R Block would be selling RSM McGladrey to McGladrey & Pullen for $610 million. This reunion of the two firms is interesting because just a couple of years ago they couldn’t stand the sight of one another. These days, you might conclude that since they opted to rebrand under the name “McGladrey” that everyone has kissed and made up but we all know better.

In all likelihood, there are partners on both sides who would rather set their CPA certificates on fire than work with the other side. The problem for the partners in these firms is that they probably had little choice in the matter, as H&RB seemed intent on cutting off the weak link:

[T]he top U.S. tax preparer looks to jettison the underperforming division and focus on its core business. H&R Block will finance about $65 million of the deal value as it looks to push through the sale of RSM McGladrey.

[…]

In June, H&R Block’s new Chief Executive William Cobb told analysts that RSM’s falling profit and revenue were a drag on the company’s earnings, and that the unit and its troubles were on his “radar screen.”

“(The sale) should improve overall corporate margin, as Tax Services margin in FY11 was 27.1 percent and RSM McGladrey’s was 9.3 percent,” Oppenheimer analyst Scott Schneeberger said in a note to clients.

And despite the Blockheads eagerness, the gang at M&P seems perfectly okay with it. From the firm’s press release:

“The Board’s objective is to reunite the assurance, tax and consulting practices under an integrated McGladrey & Pullen partnership structure,” said Jerry Bourassa, Chairman of McGladrey & Pullen’s Board of Directors. “The anticipated transaction will not impact the quality and timeliness of services to our clients. Our partners and employees remain focused on meeting and exceeding client expectations.”

[…]

“This is all about what we believe to be in the best interests of our clients, our employees and our partners. We see great opportunities for success and growth for McGladrey & Pullen as a firm reunited in a traditional partnership structure,” said Joe Adams, Managing Partner of McGladrey & Pullen. “Our relationship with H&R Block has served us very well but we both agree that it is time to move on.”

So it sounds like there may be cake and punch but it probably won’t be a lively affair.

Of course we’d rather hear from the people on the ground (i.e. the McGladrey partners, employees, Natalie) about what they make of this shitstorm. I can’t imagine anyone missing the used car dealership of the tax prep world but is this reunion going to work? Will C.E. and the gang now be able to turn Mickey G’s into the next accounting powerhouse? Can we get one name for the combined firm, for crissakes? All important questions. Please enlighten us below.

H&R Block to sell consulting unit for $610 mln [Reuters]
McGladrey & Pullen, LLP signs letter of intent to acquire RSM McGladrey, Inc. [McGladrey]

*Dustin Bradford

Uncategorized

Reznick Group’s New National Director of Tax Really Gets Around

With firms, anyway.
Joseph D. Mudd has been named Reznick Group’s new National Director of Tax, according to a firm press release. Prior to the new gig, he served as a partner and managing director with McGladrey’s New York Economic Unit Specialty Tax Services Practice. Before that, he was a partner at Ernst & Young, leading the Metro New York Area accounting methods and inventories practice, as well as the firm’s Internal Revenue Code 199 domestic manufacturing deduction practice (yes, apparently that’s a group). Before that he was with PwC. Before that, Andersen. Presumably, he’ll join KPMG next only to be snatched up PwC, thus bringing his career full circle (RIP Andersen). [Reznick Group]

(UPDATE) Layoff Watch ’11: McGladrey Causing Some Head Scratching

Hot off the grill from Mickey G’s:

Some people let go at McGladrey. Heard it was like 15 [UPDATE: SEE BELOW] from the corporate marketing department and a few others. Some head scratchers going on. Moved people around including a few changes that have people baffled. People who have no business being promoted promoted.

Earlier in the summer, we heard a rumor about layoffs in the Northern Plains region and at the time our tipster said that the firm “spread[s] the terminations over months instead of doing them all at once,” which has more or less become the norm. ANYWAY, we’re trying to get some more info from tipsters and the firm but in the meantime, drop your knowledge below or get in touch.

UPDATE: A McGladrey spokesperson has informed us that the firm did recently “announce a restructuring of our marketing department to better align with the organizational structure and business objectives outlined by our firms more than a year ago,” adding, “This resulted in the elimination of 11 positions within the marketing organization.”

The head scratching was not specifically addressed. Carry on.

*Dustin Bradford

Comp Watch ’11: McGladrey

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A communiqué from last week, “Caleb, I believe comp discussions are taking place at McGladrey.”

So I asked around and yes, it appears to be true. In fact they started awhile ago. From deep inside Mickey G’s:

Some people from my office started having discussions about 2 weeks ago. One guy being promoted from staff to senior, who received a 4 rating, received a 8.5% raise. I was promoted from Senior to Supervisor, received a 5 rating, so I received a 13% raise and $3,500 bonus.

That should fund a nice shopping spree at the McGladrey store. Of course some people simply would have been happy to get a longer holiday weekend.

*Dustin Bradford.

McGladrey Employee Not Happy with Firm’s Attempt to Give Everyone a Three-and-a-Quarter Day Weekend

Good morning capital market servants. I know the first day back from an epic holiday weekend is a tough pill to swallow, as many of you couldn’t bear the thought of returning to work today. And because some people like to prolong the agony by taking today off, I’ll do my best to take you back to last Friday. A McGladrey reader dropped this note after I checked out for the day.

The company leaders have recently rolled out this lean working platform [GC coverage here]. They are trying to say work smarter not harder. What most people think lean means though is “do more with less” which is trademark of this company. CE [Andrews] and Joe [Adams] talked on a webcast the other day and they were trying to rile us up. What for? So in the end, they can tell us “despite our great efforts there isn’t money for salary increases”.

CE and Joe and other leaders are all excited about letting the entire firm off at 3 p.m. Friday., July 1 for the weekend holiday WOW! Don’t get too crazy CE and Joe, not 3 p.m. on a Friday? Holy cow!

When Steve Tait was President [of RSM McGladrey] we would get two days off during the Fourth, but under new leadership we get to get off at 3 p.m. on Friday? What a deal. What work-life balance. No wonder we make Working Mothers top 100 each year. Oh and you know what, the firm took away summer hours too…all because they want us to focus on ongoing flexibility…and working lean, which means no one can take time off because departments are too lean.

It’s 3 p.m. now on Friday, and boy I am lucky to be off. Nevermind most employees checked out – officially or unofficially – a few days ago already. I am sure major accounting and tax deals are going down right now on this holiday weekend, but we were fortunate enough to get off at 3 p.m. What a joke!

I think I might get a small putting green cake to celebrate!

Many firms – we’ve confirmed PwC and KPMG – gave their employees last Friday off, which does make for a nice four day weekend. And our tipster is correct, early July is a pret-tay, pret-tay, pret-tay slow time of year for accounting firms so a 3 pm let-out for a Friday before the grandest, pyrotechnic digit-losing holiday of the year might feel like a slap in the face.

That said, if you’re so bent out of shape about it, why not use some PTO (God forbid!)? You’re completely in control of this situation, friend. You want an extra-long weekend? Make it happen. Expecting accounting firms to just hand you a four-day weekend is a little bitchy and you have no excuse if you have a grip of PTO banked. Don’t make the same mistake come Labor Day.

New Audit Associate Details Her First Busy Season Via the McGladrey Blog

Who knew that being able to ask all the questions you want is how you have a good busy season?

Via Success Starts Here, the McGladrey career blog meant to give you “[a] view into what it’s like to work for McGladrey”:

Starting as a new hire in Audit at the beginning of busy season was a little intimidating since not only were the hours lengthy but there was so much to learn. Would I be able to learn and understand things quickly? Were the clients nice? Would my team have the time or patience to sit down and teach me about the Financial Services industry? Those were the questions running through my mind during the first few days of orientation.

As I progressed through busy season, the hours got longer and the work load became heavier. I noticed the more work I was assigned the more questions I would ask. Thankfully, my team was very easy to work with since they were more than happy to take time out of their busy schedules to sit down and walk me through certain audit procedures. Knowing that I was free to ask any of my superiors questions made my first busy season experience that much easier.

The associate goes on to describe a bright spot in her busy season, 20 minutes taken to eat cupcakes sitting outside with the Private Equity gang. “Sitting outside and eating a simple cupcake made a world of a difference for the rest of the day,” she writes. Can you imagine having the kind of job where you appreciate the opportunity to take a cupcake break? Oh wait, I forgot who I’m writing for…

Not to be distracted by memories of that cupcake, Emmy wraps up on a positive note (it is unclear whether or not this is a requirement to post on the Success Starts Here blog) “As busy season came to an end, not only had I learned so many new skills but I also kept thinking to myself ‘It wasn’t that bad.’ Even though the hours are long and the work can be a little tougher in the beginning, working with a great team can make a world of a difference. It reminds me that I’ve made a great choice by choosing to work at McGladrey.”

Conveniently enough, McGladrey has added a jobs tab to its Facebook page if this entices you. All you self-loathing masochists out there know what to do.

What Can Be Purchased at the McGladrey Store?

There are a few things that you take for granted when working at a public accounting firm. First, your superiors will take you to nice lunches. This practice starts at the top and trickles down to the lowliest associates getting approval to throw steaks at interns. Second, you get a computer. It may not be the greatest piece of technology you’ve every used but rest assured, you won’t be crunching numbers using a pencil and paper. Third, you get tchotchkes. Tons of them. Pens, Nalgenes, poorly knit polos. The works. All of the firm swag your little heart desires can be yours. So it’s especially shocking to learn that McGladrey has a “McGladrey Store,” where items can be purchased. We don’t have a copy of the mail-order catalog but it’s safe to assume that there are items emblazoned with “McGladrey” in ample supply.

I learned of this “store” because Mickey G’s is rolling out a “Work Smarter” initiative so that the firm’s employees can maximize their time doing “high-value” work. What “high-value” entails is not entirely clear but presumably it doesn’t involve doing “research on blogs.” ANYWAY, McG boss C.E. Andrews emailed the troops to encourage them to take an online training to learn a few “Work Smarter” tips and to get the creative juices flowing so that they can submit their own “Work Smarter” ideas to the brass. For the first 25 employees that manage to throw out ideas that aren’t completely awful, they will receive “$50 to spend at the McGladrey Store.”

After the training, you will probably find yourself full of good ideas on how McGladrey can Work Smarter. Don’t keep them to yourself! Share them through our Lean thinking website and be eligible to win prizes. The first 25 people who submit an actionable idea will win $50 to spend at the McGladrey Store.

Our tipster in this matter, expands with some details:

[T]his “lean fundamentals” initiative seems irritating similar to KPMG’s “Next Step” program that I’ve seen come across your website. The dangling carrot of $50 in McGladrey bucks (cash value: 1/100 of a Monopoly bill) is particularly patronizing. Just another example of the cheapskate culture that seems to ooze from the brass at Mickey G’s these days…unless of course we’re talking shelling out for putting green-sized cakes and headlining golf tournaments that take place during the freak show of the PGA season (aka the”Fall Series”).

Unfortunately, Oanda doesn’t have a exchange rate for “McGladrey bucks” so there’s no way for us to confirm this valuation at this time. Regardless, it’s still not obvious if the $50 is enough to get you a stress ball, let alone a chance to take Natalie Gulbis out for drinks. We’d love to see a product list with prices in order to confirm/disconfirm some of our suspicions, so do get in touch with any particulars.

McGladrey Announces Contest Where the Grand Prize Is Caddying for a Golfer That Isn’t Natalie Gulbis

The cakehole fillers at McGladrey announced a contest last week where the winner will caddy for Davis Love III at the McGladrey Classic Pro-am. All you have to do is submit “a creative photo and short essay explaining why you should be Davis’ caddie.”

Of course you’ll have to know DL3 inside-out and upside down, just like the folks at Mickey G’s [Someone who] understands my needs, my game, and my love and passion for the game of golf.” Right. Needs like making sure that there is a fresh pair of pants available for photos should Dave win the tournament, keeping John Daly’s hillbilly ass out of earshot and verifying that the McGladrey people put “Davis Love III” on the checks.

Can a McGladrey Associate Let Their Former Classmate Know That They Don’t Have What It Takes?

Welcome to the botched-BJ edition of Accounting Career Emergencies. In today’s edition, a first year at McGladrey doesn’t feel comfortable recommending his former college classmate for any openings at his firm. How does one handle breaking the news to the interested party that they don’t have what it takes?

Ever have trouble controlling yourself in an appropriate manner? Are you getting the sense that you’re being set up to fail? Ever feel like you’ve got enemies all around you? Email us at advice@goingconcern.com and we’ll try to get you out of a bad situation.

Meanwhile, back in the land of punch and cake:

Hi there,

I’m a first-year at McGladrey. For the second time in the past month a former college classmate of mine has requested that I recommend him to the powers that be at our firm for any openings we may have.

I don’t think that either of these people would fit into a major public accounting firm either socially or in terms of talent. What is the appropriate etiquitte for this situation? I doubt I’m the only one.

Thanks

Dear Natalie Fanboy,

I’d be really interested to hear why you think your former classmate wouldn’t fit in “socially or in terms of talent.” Do they still have trouble getting through Goodnight Moon? Does he/she have terrible body odor? Do their social skills border somewhere between “Did you look in the mirror before you left the house?” and “We can’t take you anywhere!”? These details would prove helpful.

I’ll move on. Most firms have an automated method of submitting referrals and I’d be shocked if McGladrey didn’t have something similar. If Mickey G’s does have a such a process, just throw your classmate’s résumé into the machine and it will get sorted out one way or another. If your suspicions are correct (i.e. your friend has no chance) then it’s likely nothing will happen.

If McGladrey doesn’t have such protocols in place and it is based on the ol’ résumé handoff, then A) Tell McG HR to get their shit together and B) simply explain to your friend what it’s like to work there before they start claiming this is their dream job. Is a career at McGladrey really what this person wants or did they recently come to the conclusion that clocking hours on PS3 won’t get them too far in life and they’ve go to do something?

The other thing you can do is impress upon your friend that you’re a first year associate and they barely let you have lunch, let alone recommend former classmates to TPTB at the firm. That is, the odds of anything happening are slim. If your he/she persists, explain what the expectations are (i.e. hours for the pay, other things that make it less-than desirable) and that people fail left and right. Basically, let this Mickey G wannabe know what kind of situation they’d be getting themselves into. This will allow you to indirectly present the reasons you don’t think this person might not fit in without explicitly pointing out their shortcomings.

Now, if they still are begging you to take their résumé, I don’t know why you wouldn’t just pass it along and see what happens. Hell, if they were to get hired, you might even get a bonus out of it. You got something against money?

McGladrey Suing Three ‘Rainmakers’ Who Defected to JH Cohn

That, according to a report in the Minneapolis/St. Paul Business Journal:

At risk are millions of dollars, the company’s reputation and the entire health care practice now led by a Minneapolis partner, according to a lawsuit recently filed by the accounting, consulting and tax firm against the three rainmakers who went to New York-based J.H. Cohn. Bloomington-based McGladrey and the former partners said they’d rather not discuss the dispute. Public records show that McGladrey is seeking a federal court order to keep the partners away from their clients

And unfortunately, that’s all we know. The MSTPBJ is behind a paywall (and my publisher is currently not springing for a membership) so we can’t really tell you much more than that. But we do love a good Benedict Arnold story, so we called around and are anxiously awaiting both firms to call us back. In the meantime, if you’re in the know get in touch or discuss below.