Tag Archives: thoughts

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 →

7-year old wisdom

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“I’m practicing being somebody. Because you can be a somebody or just someone. You know, someone who is just passing by.” – Nicholas

Funny how the subtlety of language – somebody versus someone – resonates at an early age. Then, I wonder what he meant by the last part.

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 →

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.

Standards

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I had Chinese food last night. My fortune read “The nice thing about standards is there are so many to choose from.” How true.

As accountants, we see the humor in this as we watch our colleagues discuss IFRS versus GAAP. IFRS versus IFRS for SMEs. IFRS versus IFRS in the entity’s home country and so on. Principles based, rule based…sure.

I am old enough to have taken the CPA exam when one section was called theory. If you understood the fundamental nature of an economic event, you could probably get the accounting correct. The only standards  you needed were logic and truth.