Category Archives: On the inside

General observations and comments that I find hard to catagorize – ramblings

Can I audit Kevin Bacon?

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At the A&A conference last week a speaker suggested that we use the ‘six degrees’ model for a guide to independence. She suggested at least 3 degrees were required.

I agree. Under current independence guidelines we can audit the company where our brother-in-law is the CEO.  Under the ethics guidance, we cannot audit any company were an immediate family member is a part of management.  Our sister would be immediate family, but our brother-in-law would not.

Now, if our brother-in-law also owned shares and they lived in a community property state, then we would be out…….

I think most of us agree that we should not consider ourselves independent of a company controlled by our in-law. Remember we must be independent in appearance as well as fact.

Sister would be one degree, brother-in-law two….I agree with three idea.

 

 

 

AICPA SME effort – too many cooks?

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The Financial Accounting Foundation (FAF) is the parent organization for the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). In recent years FASB has occupied itself with the modification of U.S. generally accepted accounting principles (GAAP), more closely aligning them with International Financial Reporting Standards (IFRS). IFRS rules are set by an “international” standards setting body based in Brussels, the aptly named International Accounting Standards Board (IASB). To be fair, the IASB has been working to harmonize their standards with U.S. GAAP as well.

The convergence of U.S. GAAP and IFRS is believed by many as a worthy pursuit leading to the development of a single set of global standards. I won’t spend a lot of time on this, but the idea is more a lofty ideal than a practical goal. IFRS proponents often use as support for their system claims that the rest of world has adopted these “international” standards, without mentioning that most countries make modifications to assuage local special interests as they adopt. Continue reading →

Inspiration and depression – a leader’s choice

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I recently attended a leading partners meeting for my region of CPAmerica. In the interest of full disclosure, I am not the managing partner for our firm. I came off the bench for this one. However, I find that when I attend these meetings I end up both inspired and depressed. Inspired because being in the company of such great colleagues challenges me to rise up to my best and allows me to see the potential for my firm and in myself. Depressed because I see the obstacles in our way, obstacles that experience teaches are difficult to surmount. Those in the position of power and benefiting handsomely from the situation are reluctant to change, even if they admit to the long-term benefit. If I want to be a leader, I need to make sure inspiration wins out.

To scrape or not to scrape

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I find it difficult to come up with ideas to blog about and even more difficult to produce a post when I do. I’ve noticed that many blog/web sites ‘scrape’ content from other sites and re-post. Continue reading →

We forget how blessed we can be.

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So Nick is home from the hospital. We won’t get the biopsy results until later this week; but the orthopedic surgeon said he did not believe the growth was malignant. A better description would be to call it a cyst. Still, a good sized portion of Nick’s femur was involved as the hardware that now holds his leg together will attest.

X-ray during surgery showing position of pin

Continue reading →

US GAAP vs IFRS – What’s all the fuss?

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With the convergence projects over the last few years, the remaining differences are fairly small and, even then, only an accountant might understand or appreciate the reporting subtleties that result.  Will mezzanine presentations confuse? Will anyone care if they do?

Switching to IFRS may help prevent the politicization of accounting standards and hopefully forestall future efforts to legislate GAAP – recall the misguided efforts to stop expensing of stock options and the lobbying of banks who wanted to stick their collective heads in the sand when it came to writing down CDOs. IFRS Rule 9 aside, the invisible hand will not be fooled. Continue reading →

First rule in sales – smile!

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The boy scouts are set up at various retail outlets around town today.

Stop by and lend support if you can.

 

 

I think mom spent more time on the sign than the kids are scheduled to sell.

Moms can be like that.

Do clients leave over fees? Of course and of course not.

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My colleagues sometimes accuse me of being a little indecisive. True, I don’t often see things as black or white. The world is a complex place and quick, simple answers don’t usually measure up over the long-term. But on the topic of why clients leave, most fail to understand that there is an easy answer – value.  Perceived benefit – cost = value.

In a May 2011 article for the AICPA’s Insider, Jean Marie Caragher cites a Bay Street Group LLC study claiming that the top reason clients change CPA firms is poor client service and inattentiveness. The study apparently held  Continue reading →

Where you can count on us!

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So, I found my children playing. My son, with his sister’s urging, had started his own tax practice.

Now, even at this young age, they knew they needed a tag line and a way to differentiate their business.  Interesting that we as adults just can’t seem to grasp this simple technique. We tell ourselves it isn’t necessary. Well, even with the second-grade spelling, we get the point.

Corporate deadline blues? Do clients care?

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Clients who come in at the last-minute deserve just as high quality service as those who show up timely, but quality is so hard to provide at the last-minute.  We try, but they don’t give us much room for planning or correction.  I lecture them and hope they understand.  It’s frustrating to see clients with so much potential who either believe they can’t afford the service or simply don’t see the value.  Now, we file and then look to amend if items like the small employer health insurance credit or other opportunities seem promising.

Our accounting manager spent the day with a payroll provider and a client looking into amending 2010’s payroll for some critical errors – the payroll service agreed that we would be a lower cost choice. Now that is scary. We’re less expensive than the major payroll provider and it’s their error!

How do we make the clients see value in things they don’t understand. Trust is the key. They need to believe that you know their pain and that you have their best interest at heart. It’s tired but true….They won’t care how much you know until they know how much you care.