Your Layoff To-Do List

Judging from what I'm reading on greendotlife.com, Deloitte is continuing layoffs. I particularly liked this post by an anonymous guest talking about how to prepare if you're thinking you might get called into a meeting with HR this week.

If you feel concerned, go with your gut. You should get ready for the meeting request, with HR present, don't be fooled that it is for a pep talk. Nothing really to do or talk about at that point.

Severance is provided based on years of service and your level, PTO is paid out, an additional 4 weeks is provided if you sign a doc agreeing not to call your lawyer.

Action Items: backup your contacts, do what you need to do, plan to convert your cell number to yourself, get an AmEx Blue card (free) so as not to loose your AmEx points when account is termed (Points remain for 30 days only!!!!).

Now you are ready to begin your Q4 2008 job search. Very straight forward. Keep your chin up and reach out to your network. Just like you are taught here, Network, Network, Network...Be prepared and organized like a good consultant. Once done try to have some fun with the time now on your hands.

Here Come the Non-Cash 'Incentives'

With stock and bond prices cratering and the global economy spiraling into what could be a severe recession, employers expect to have less cash to dole out in bonuses and future paychecks. That's leading such blue-chip firms as Goldman Sachs to scramble for alternate avenues to maintain morale and retain staff.

"What kind of non-cash rewards can HR promote during such a market downturn?" a vice president in Goldman's human capital management division asked on LinkedIn Friday.

The responses were mostly predictable, such as an extra day off, flextime, and a company-sponsored lunch now and then. As for the less obvious suggestions, some were less obvious for good reason. One commenter cited the team-building value of a "Crazy Hat Day," where all employees wear their silliest hats to work. Another suggested luncheons that include prize drawings – "Something simple, like a toaster, blender, etc." (Alright, that one came from the president of a workers'-comp consulting firm, who I presume was talking about blue-collar workplaces. In my former industry, they'd have to give away a Rolex to create any goodwill. Or maybe a Tesla Roadster.)

Attention all cynics: if your employer suddenly gushes non-cash perks or low-rent group outings, it might be prudent to lower your bonus expectations even more than you already did.

On the other hand, some ideas that I think would matter to real employees – at least, the kind of real employees that a real employer would actually want to keep – were posted later in the thread by the same Goldman Sachs official who posed the initial question (giving part credit to a Target Stores HR manager). Those ideas focused on career advancement: "giving people extended responsibilities, assigning a senior mentor, ….role swaps, internal mobility opportunities and stretch assignments."

But perhaps the best answer of all came from the head of a foundation associated with another job board, which I won't name. She wrote:

"It may not be an incentive per se, but I have found that especially in difficult economic times, employees appreciate transparency above all else. Senior management talking openly about the economic climate and how it's being handled by the company will create strong goodwill and thus loyalty with employees. Reassurance that their job will be there in 3, 6, 12 months is more than reward enough. Those that are skeptical about the company's ability to sustain the storm may be ready to jump ship before it sinks."

"What kind of non-cash rewards can HR promote…." [LinkedHR; may require LinkedIn group membership]

Age Bias: One Executive's Thoughtful Account

We've often taken note of hiring managers' unconcealed preference for candidates in their 20s and 30s – which sometimes prompts readers to chime in with horror stories of their own.

Recently I came upon the best first-person account I've seen yet. It's a May 2006 article by Sheleen Quish, a well known information technology executive. Although Quish's story appeared in CIO, a magazine for corporate chief information officers, it seems equally applicable to finance.

Quish was eased out as global CIO of U.S. Can Co. in 2005 as part of a major management transition. The exit was amicable, giving her ample time to prepare her next step. She writes:

Anticipating changes in the air, I had begun letting people know I was back "on the market" in mid-2005, confident that I would be recruited into another great opportunity in just a few months. And it started out just like the old days: interviews with executive search firms, and the follow-up interviews with key people at some very interesting companies.... Then I found out that the other candidate was selected. Hmmm, this was a new phenomenon for me.

As the scenario repeated, Quish came to realize that something fundamental had changed. Her skills were in fighting shape, her management style had always possessed the now-fashionable focus on communication, and she was better qualified than ever for a senior role.

Upon analyzing and comparing her attributes with those of the successful candidates for each role she had sought, she reluctantly concluded:

It is not about the skills or qualifications. It is not about industry experience or being overqualified. It is about age.

Quish's response to that unsettling realization will resonate with many a Baby Boomer. Like her, we know our capabilities have never been greater and we have never been more alive. Like her, we have built our careers and, perhaps, our self-esteem, around successfully tackling problems, challenges and turnarounds. Yet being rejected as too old is one challenge that cannot be overcome by working either harder or smarter. "I hate to think that age is the issue, because there is nothing I can do to change it," Quish writes. "Age is the most irrefutable thing in our lives."

Turning to her peers, she discovered her experience wasn't unusual. She found a huge number of former IT managers "in transition" – and all were over 50. Her message to colleagues who are still employed is: "Stay at your current employer as long as possible because once you leave there is nowhere to go."

There is a happy epilogue to Quish's story. In June 2007, about a year after the article appeared, she was named chief information officer for Ameristar Casinos Inc., a publicly traded gaming and entertainment company based in Las Vegas.

Job Opportunities: The New Glass Ceiling [CIO]

New York's CPA Firms Feel the Chill

Accountants in the New York area are bracing for a decline in business from financial-sector clients. The consulting realm is certainly going to feel some pressure, as will accounting work from the banking, investment and insurance industries, which provide the lifeblood for CPA firms in the area. One

In preparation, some firms are looking to "upgrade" by replacing lower performers with better, more skilled professionals, especially at partner level. Some expect CPA firms to have their pick of new accounting grads, as entry-level opportunities at hedge funds and investment banks dry up.

Here's our story.

IIA Salary Survey Predicts 3.8% Bump

A whopping 91 percent of employers surveyed last May by the Institute of Internal Auditors (IIA) planned to increase internal auditor salaries in 2009. And 69 percent said they were going to increase salaries for 100 percent of their audit staff.

However, there’s a catch. The study also found that the average percentage of increase is beginning to wane. Audit staff increases for the next year will be 0.5 percent lower, with increases averaging 3.8 percent, rather than the 4.3 percent average granted to audit employee during the past 12 months.

“The frenzied period spawned by the reporting and compliance requirements of the U.S. Sarbanes-Oxley Act of 2002 – when many employers felt compelled to pay whatever the market would bear for internal audit skills – is waning and being overshadowed by the current economic uncertainty,” said Harrington & Associations Principal Consultant Judith Harrington, CCP. “Now that the legislation is a fact of life and they have aligned systems and staffing to ensure their ability to comply, it appears that those in the internal audit profession are no longer being singled out as the target of recruiters as they once were.”

Conducted by Harrington & Associates Inc. for IIA’s Global Audit Information Network (GAIN), the study estimates Certified Internal Auditors (CIA) earn anywhere from $58,250 (plain auditor) to $124,000 (chief audit executive).

In looking at certification, the survey found just what one would expect. The CIA paid off most directly for those in audit, while the Certified Information Systems Auditor boosted those in IT/Audit positions. Those with information technology expertise, on average, out-earned plain auditors.

Not surprisingly, the larger the firm, the higher the salary of its auditors. Companies with annual revenues of more than $1 million paid internal auditors, on average, $12,000 more than smaller organizations.

Which sectors are looking good? “Public accounting firms reported some of the highest increases during the past 12 months, with raises averaging 6 percent,” the survey said. “The consulting sector posted similar rates of increases for internal auditors for the last year at 6.3 percent – nearly double what other employees in that sector received. And internal auditors working in the advertising industry are expected to enjoy average increases of 7 percent next year.”

They Wax Poetic at Deloitte

A few Deloitters literally wax poetic about passing the CPA Exam in a You Tube video that proves accountants very definitely do have a sense of humor.

If you liked the waxing scene in The 40-Year-Old Virgin, check out the Deloitte 2008 New Hire video The 40-Year-Old New Hire, in which a new hire is shown the secret to passing the exam and we find out how to curse in accounting lingo.

Job Fairs and You

Here's a good item from the Atlanta Journal-Constitution about how to get the most out of job fairs. Apparently, there's a job fair "season," and we're in the midst of it. Columnist Amy Lindgren provides ten tips for getting the most out of them:

1. Choose the right fairs.
2. Make a plan.
3. Prepare your materials.
4. Decide what you want from each fair.
5. Practice your conversation points.
6. Don’t lead with “What jobs do you have open?”
7. Stick to the subject.
8. Pick up handouts, but don’t make that your focus.
9. Don’t overstay your welcome.
10. Follow up.

Details on what's behind each item are in her full column, here.

Bear-Market Accounting Skills Gain Ground

Beyond blunt tools like downsizing, CPA firms also are adapting themselves to the slowing economy in more subtle ways. In general, they're trying to tilting their corporate skill-set toward the kinds of services more clients will demand during a recession. For instance, Ernst & Young's Califonria offices are steering current openings toward accountants who practiced during previous downturns in 2001 and even 1991. Accountants with various forms of expertise in helping clients cut costs are in demand, along with CPAs who know how to value property (some clients are selling assets to raise capital, while others look to buy bargain-priced property). Here's our story.

PwC Global Revenues Reach $28 billion

PricewaterhouseCoopers today disclosed that total gross revenues for its worldwide network of firms rose to a record $28.2 billion for the fiscal year ended 30 June 2008, an increase of 8 per cent at constant exchange rates.

That breaks out to roughly $14 billion from assurance (up 3 percent), $7 billion from advisory (up 14 percent) and $7 billion from tax (up 13 percent).

The firm also announced global leadership appointments and a new organizational structure that divides the company into three geographic clusters each led by the senior partner at the largest national firm in the cluster.

About 16% of PwC employees are Asia (the East Cluster), 41% are in the EU (Central Cluster) and 26% are in North America and the Caribbean (West Cluster).

The Case for an End to Big 4

Over in the United Kingdom, Rob Lewis, a feature writer for AccountingWEB.co.uk, speculates that lawsuits will bring an end to the Big 4 as we know it here in the United States.

He’s not the first one to bring up this argument, but he takes it a step further when he goes on to suggest liability issues could capsize all of auditing.

Whether you agree or disagree with his viewpoint, it’s interesting to read the U.K. take on the U.S. system.

Gearing Up for International Standards

Now that the Securities and Exchange Commission has set a 2011-2015 timetable for moving from U.S. GAAP to IFRS, representatives of the accounting profession expect to come up to speed fairly quickly. SOX 404 was absorbed in only six to nine months turnaround time, a KPMG managing partner remarked. Still, professors who teach accounting are taking it slow. Here's our story.

Don't Leave Money on the Table if You Relocate

With jobs becoming less plentiful, it's harder to rule out opportunities that require moving to a different city. Since gross expenses associated with relocation can exceed $60,000 when you include real estate commissions, mortgage points and children's forfeited school tuition, it's worth knowing the ins and outs of negotiating a relocation package. Here's our story.

Surviving Two Critical Interview Questions

It's widely known that initial phone interviews, often conducted by an employer's human resources department, are largely meant to screen out candidates.

Once you've gotten past any basic skills questions and steered clear of saying anything that anyone might conceivably interpret as controversial, you'll likely face at least two important questions: the salary question, and the "So who else are you talking to?" question.
Both can contain a drop of poison unless you're well prepared.

Here's our story, in which guest author Rob Gordon explains how to successfully cope with both.

Who Made Working Mother's Top Ten?

The Working Mother Magazine Top 100 Best Companies list came out today and three of the Big 4 made their Top Ten list: Ernst & Young, PricewaterhouseCoopers and KPMG.

Deloitte and Grant Thornton were in the Top 100, as well.

Rounding out the top ten: Abbott, Baptist Health South Florida, Bristol-Myers Squibb, IBM , The McGraw-Hill Companies, Pillsbury Winthrop Shaw Pittman and S.C. Johnson & Son.

Succession and You

As accountants age and look for exit strategies from the firms they own, their succession plans become key factors to consider for those looking to move up the ranks and perhaps takeover the business.

Here the story on JITM.

Near-Term Stability for Wall Street Accountants

The move by Morgan Stanley and Goldman Sachs to convert to bank holding companies will mean more work for accounting and compliance professionals in the short run, but may lead to eventual layoffs, industry observers say.

Our story's here.

What's Behind Layoffs at the Big Four

Recent layoffs at Deloitte weren't the first cuts made by a Big Four firm this year, but they were the most highly publicized. Every year, Big Four and next-tier firms have layoffs, but they do them in small pieces, spread them out geographically, and tend not to send out press releases about them.

Here's the story.

UK's KPMG, E&Y Put a Hold on Some Hiring

KPMG and Ernst & Young have a put on a hiring freeze in the United Kingdom, according to a feature in today’s issue of Accountancy Age:

KPMG has ended its huge surge in staff numbers, with the Big Four firm set to announce that its headcount has not increased over the last year.

E&Y meanwhile has a staff recruitment freeze, only recruiting in senior or technical roles.

KPMG has seen staff numbers increase hugely over the last few years. Its annual reports reveal staff numbers of 8,936 in 2005, then 9,815 in 2006 and as many as 10,331 in 2007. But it is thought the firm's annual report will reveal the growth has come to an end.

A spokesman for KPMG said it was being affected by the current business climate.‘We're not taking on additional people. We're not expanding when it comes to head count. We've been hiring up until recently,’ he said.
The spokesman said the firm’s recruiting of 1,000 graduates will go ahead as planned this week.

Does that mean a freeze is coming to the U.S.?

It doesn't seem that way. Ernst & Young plans to hire more than 5,000 interns and full-time hires this year from top college campuses in the U.S. and Canada, the company said through its spokesperson.

Over at KPMG, they’re getting ready to host a 48-hour virtual recruiting fair next week that will feature hundreds of job opportunities in tax, advisory and specialized audit services with KPMG member firms worldwide. More than 10,000 interested applicants have already registered for the online event through KPMG’s global website at http://www.kpmg.com/.

Just When You Got Used to SOX...

Zachary Karabell writes in The Wall Street Journal about how changes to accounting rules helped set the stage for the AIG debacle, and makes a compelling case that often the rules have amplified the real-world impact of declining asset values. He also notes that accounting rules tend to be written with their authors looking back over the last crisis.

A few years from now, there will be a magazine cover with someone we've never heard of who bought all of those mortgages and derivatives for next to nothing on the correct assumption that they were indeed worth quite a bit. In the interim, there will almost certainly be a wave of regulations designed to prevent the flood that has already occurred, some of which are likely to trigger another crisis down the line. Until we can have a more rational, measured public discussion about what government and regulations can and should do vis-à-vis financial markets, we are unlikely to break the cycle.

You can agree with him or not, but you've got to wonder whether we should all prepare for another round of regulations to work with.

Bad Accounting Rules Helped Sink AIG [WSJ]

Second Act: The IRS

Baby Boomer accountants looking for more balance in their lives are considering positions with government agencies, including the IRS. The nonprofit Partnership for Public Service is working to recruit older Americans into public service with programs like its new "FedExperience."

The government is legendary for its insular hiring practices, but now it's facing a major labor shortage in key skilled positions due to an aging workforce. At the same time, a wave of baby boomer professionals retiring from private-sector positions are looking for second careers - with many seeking positions that allow them to "give back."

Uncle Sam wants you, boomers - to fill jobs [Tribune Media Services via Newsday]

Tech Skills are Vital

It's a given you have finance and accounting skills. But what's the next most important item in your career tool belt? If you'd asked CFOs that question five years go, they would have said "operations." But today, they'll answer "technology."

Here's our story.

CFOs Like the Idea of Flex Time, but...

Three-quarters of chief financial officers say it’s important to offer employees work life benefits, such as flex time, but nearly two-thirds work for companies that don’t do so, according to a new survey by BDO Seidman.

"In order to grow and compete in today's complex, global business environment, companies have to move beyond viewing flexibility solely as a tool for talent retention or employee satisfaction, and make flexibility matter to all aspects of their business," says BDO Chief Executive Officer Jack Weisbaum.

To gain C-suite support for flexible work life benefits, focus equally on people and business-related goals such as more productive workflows, reduced environmental impact and increases in health care and real estate savings, suggests Cali Williams Yost, who co-developed BDO's flexibility strategy and is president of Work+Life Fit, Inc.

BDO and Work+Life Fit’s 2008 CFO Perspectives on Work Life Flexibility study was based on telephone interviews with 100 CFOs at companies with at least 5,000 employees.

A scant 39 percent of the CFOs surveyed work for companies that offer formal flexibility policies or programs. Additionally, while 75 percent of the CFOs at those companies say flexibility is "very important" or "somewhat important" to the future profitability of their organizations, most think that their management teams (62 percent) see flexibility only as an employee perk or human resources policy.

“There is disparity between the potential bottom-line impact of flexibility and the strategic infrastructure companies have in place to achieve these goals," notes BDO's Weisbaum. "If flexibility is going to have the impact on profitability that CFOs believe it will, then more organizations must consider strategic, business-based flexibility strategies."

Weisbaum doesn’t just talk the flex time talk, he actually walks the walk. His employment contract specifies that he can telecommute from his home in Vero Beach, Fla.

As of this summer, 66% of BDO employees reported using day-to-day flexibility (small, periodic changes in where, when and how work is done) in the past year. And, 14% of employees have a formal flex plan such as telecommuting, reduced schedule or flextime arrangement.

Advertising that Hits Them Where they Sit

If you want to lure a big city Big 4 accountant to a job in the 'burbs, you’ve got to cast your reel in the right pond. For Cerini & Associates, that means advertising for experienced hires by putting ads at the Ronkonkoma and Huntington Long Island New York Rail Road stations, where accountants board the train for the two-hour ride into Manhattan.

Matthew Armandi, senior manager in charge of recruitment at Cerini & Associates tells Long Island Business News reporter Laura Glasser why his firm is trying non-traditional advertising and pitching work/life balance:

The Big Four have the resources to attract the best and the brightest right out of college, but after one to two years, those people find the money isn’t worth the extra time they have to spend at work,” Armandi told the paper. “We can target those people because we know they’re already very good at what they do.

On Long Island, the economy has accounting firms working harder, in part because of an uptick in the number of companies needing help restructuring. Read the whole feature to see what else is going on up there.

Time for a Change?

Accounting and financial professionals remain fairly optimistic about their jobs – even if Deloitte's recent lay offs made some news and some major tanking is going on in the investment sector. If your industry's struggling, this might be a good time to switch sectors, suggests CFO magazine, especially if you're a senior manager:

…the health-care and energy sectors have wide open-doors for people seeking career changes.

The health-care sector has added 368,000 jobs this year, according to the U.S. Department of Labor. The aging of baby boomers has raised the demand for health-care workers, and health-care organizations need more accountants as well to keep track of the new business.

And the energy job market is going strong because of the boom in natural gas production and increased investments in alternative energy.

Is It Time to Switch Industries? [CFO]

Last Month's Poll

In August, we asked JobsintheMoney users if their firm was laying off non-accounting staff. The results:

• Yes – 61 percent
• No – 24 percent
• There are plans to – 3 percent
• Don't know – 12 percent

Now we're curious about whether accounting jobs will suffer along with the general economy. Take our poll on JobsintheMoney's home page.

Economic Tremors For New York CPAs

With the condition Wall Street's been in lately, it's no surprise that CPA firms in the New York area are starting to feel the economic pressure as their clients' revenues shrink. As storm clouds gather, a hot specialty like corporate governance or experience working for Internet or media companies, may be the key to keeping your head above the rising waters. And make certain you stay on top of the technology in the field. Here's our story.

Peacefully Coexisting With Porcupines

Having a control-freak for a boss or a gossip-hound for a cubicle-mate was bad enough when recruiters were calling you twice a month. Now that the economy has turned, it's even worse, because getting on the wrong side of anyone in your group could cost you your job.

So Vicky Oliver's new book, Bad Bosses, Crazy Coworkers & Other Office Idiots, is well timed. Full of advice for coping with difficult people at work, it's being touted as a survival aid in today's cutthroat job market. "When the times get tough, the tough stay put!" says Oliver, a career management author and speaker whose previous books include 301 Smart Answers to Tough Interview Questions.

Bad Bosses, Crazy Coworkers & Other Office Idiots dissects a variety of villains carrying colorful monikers such as "The Grumpy Martyr," "The Boss’s Pet," and "The Credit Snatcher." There are also some old familiar nasties, like the sexually harrassing supervisor, and the boss who is a legend in her own mind. Oliver focuses on giving concrete advice for achieving peaceful coexistence - such as when to speak up and when it's wiser to "sweep your problem under the 2-ply industrial carpet."

Escaping the Treadmill

If you yearn to recover a bit of the freedom you shed when you went into public accounting, project work might be the answer. You can either market yourself or sign on with a company that specializes in placing project-based accounting and finance professionals, from entry-level bookkeepers to chief financial officers. Here's our story detailing the ins and outs (and pluses and minuses) of this career option.

Surveys Say: 4th Quarter Looking Good

Deloitte employees may be getting laid off but everyone else’s holiday bonus is probably safe because demand for accounting and finance employment is holding steady at worst and may even rise during the last quarter.

That’s the latest word from two employer surveys out this week, Robert Half International’s Quarterly Financial Hiring Index and Manpower’s Employment Outlook Survey. Both ask respondents about their hiring plans for the fourth quarter of 2008.

RHI’s data, which is compiled from telephone interviews with 1,400 chief financial officers (CFOs), asks specifically about finance and accounting positions. A whopping 85 percent of the CFOs said they plan to stand pat and not hire or fire anyone, 10 percent plan to increase staff and 5 percent are going to be making cuts in the 4th quarter.

More specifically, RHI’s survey says:

Forty-four percent of CFOs who expect to hire in the fourth quarter cited business growth as the reason for the increased need for additional staff. Forty-one percent reported rising workloads as the primary driver.

Twenty-eight percent of executives interviewed cited accounting positions as the most challenging to fill. Twenty-two percent of respondents pointed to operational-support roles, such as those in accounts payable and collections, as the most difficult to staff.

The most active hiring is expected to take place among firms with 20 to 49 employees, where a net 6 percent of CFOs project adding staff. Eleven percent of executives plan to hire full-time financial professionals and 5 percent anticipate decreasing personnel levels.

Manpower, meanwhile, puts finance, insurance and real estate together in a single category. Despite the downturn in real estate, about two-thirds of the 14,000 surveyed employers said they planned no changes in their hiring, while 15 percent planned increases and 12 percent planned decreases in hiring, which nets out to a 5 percent increase when the numbers are seasonally adjusted.

That sounds great on the surface, but actually, it’s a slight dip from the previous quarter, and considerably lower than the sector’s 2005 peak of 25%. “This is the weakest employment outlook for the Finance/Insurance/Real Estate sector since Quarter 2, 1992,” Manpower’s survey reports. That early 1992 housing market had a lot in common with today’s market, including a foreclosure crisis, a savings and loan crisis and tons of bad assets being unloaded.

The two surveys also project which regions will offer the best job markets. Manpower says the strongest job prospects are found in the West and the weakest are in the South.

RHI says New England states (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont ) and the East South Central states (Alabama, Kentucky, Mississippi, Tennessee) will see the greatest gains in hiring.

“Growth in the manufacturing sector in the East South Central states is among the trends driving the need for additional financial staff, particularly midlevel accounting professionals,” says Max Messmer, chairman and CEO of Robert Half International. "In the New England region, financial analysts are needed to help firms identify further operating efficiencies.”

So how does all this jibe with Deloitte layoffs, plus earlier layoffs at other Big 4 firms? “It’s hard to draw any conclusions that apply to the industry as a whole,” says Jon Zion, RHI's president of eastern operations . “We have yet to see a broader trend of personnel reductions and, in fact, continue to see hiring activity in public accounting. Many firms even report hiring difficulties due to a shortage of skilled professionals.”

Want to check your local RHI results? Head to www.roberthalf.com/PressRoom.

Crowe Chizek is now Crowe Horwath

Crowe Chizek and Company LLC, Oak Brook, Ill., is practicing under a new name, Crowe Horwath LLP.

The new name reflects the firm’s membership in Horwath International, a network of 140 independent accounting and management consulting firms, with offices in more than 400 cities globally.

Crowe, which has about 20 offices and over 2,500 staffers, is the largest member firm within the Horwath network (the network’s members have a total of 19,000 professionals).

The company has served 350 international clients in more than 40 countries, and the name change is aimed at raising Crow Horwath's global visibility.

Wachovia Close to Naming a CFO

With Wachovia Corp. on the verge of naming a new CFO, The Wall Street Journal says the front-runner is Carlyle Group executive David Zwiener.

Wachovia, like most U.S. banks, is struggling to adapt to the housing downturn. Among other things, that led the bank to replace its chief executive a couple of months ago and oust its CFO soon afterward. Just this weekend, Washington Mutual - another big domestic bank that made a horribly timed bet on non-traditional mortgages – ousted its long-time chief executive. And of course, the Treasury has just announced it's taking over Fannie Mae and Freddie Mac and will replace those institutions' top executives. In an interesting coincidence, the man named to run Freddie Mac, David Moffett, is a senior advisor to Carlyle Group, the same private equity firm where Zwiener now works.

Zwiener's background, the WSJ observes,

includes a stint as president and chief operating officer of property and casualty operations at The Hartford Financial Services Group, as well as turns as executive vice president and chief financial officer at the same company. He also was executive vice president and chief financial officer at ITT Financial Corporation and senior vice president, treasurer and executive vice president-capital markets at Heller International Corporation.

Zwiener Is Top Pick As Wachovia CFO [WSJ]

Help Moving into an Ivory Tower

CPAs who want to shift from public accounting into a teaching position at the university level can apply for a $30,000 annual stipend from the Accounting Doctoral Scholars (ADS) program.

The ADS Program, run by the American Institute of Certified Public Accountants Foundation, will give 30 stipends each year to doctoral program students willing to commit to teaching or research in auditing and tax after graduation.

The program is open to CPAs with three years of “meaningful” work experience in public accounting audit or tax who are U.S. citizens or permanent residents.

The job outlook for university accounting professors looks pretty good right now. Currently, over 43 percent of U.S. accounting faculty members are 55 or over and the number of new PhD’s been steadily declining. A “serious crisis” is going to occur in the near future if more CPAs don’t choose teaching careers, according to the American Accounting Association.

ADS has a two-step application process. First, you apply to the program. Then, if you’re selected, you attend a one-day orientation and confirm that you’re applying to enroll in a doctoral program at a participating university for the fall 2009 school year.

The deadline for this year’s applicants is Nov. 3, 2008.

More on What IFRS Means for You

So many articles on IFRS, so little time.

Knowledge@W.P.Carey published this piece examining the differences between IFRS and GAAP, what's required to get up to speed on the international standards, and what the Big Four are doing to prepare their accounting staffs.

In light of legal issues, (Deloitte & Touche Senior Manager Kevin) Dueck thinks the shift to "fewer rules and more principles" will prompt accountants to hone skills in "documenting judgments and procedures clearly and concisely." He's not sure the change actually will bring more documentation but, he says, "The entry-level person will need to be a critical thinker and a good writer."

And, what about the tug-of-war between auditors and corporate management over disclosures and unqualified financial statements? "A lot of people think IFRS will give managers more power in negotiating with auditors" over rules interpretation and adverse opinions in statements," (W.P. Carey Professor of Accountancy Philip) Reckers notes.

Dueck doesn't see that hazard. "It's at the auditor's discretion which type of opinion to issue or whether to issue an opinion at all," he says. But, he adds: "What you will see is more footnote disclosures in financial statements." That means investors will work harder to understand the financial health of companies they're researching.

Standards Deviations: U.S. Financial Accounting Heads for Change [Knowledge@W.P. Carey]

Our Take: Age Matters

Recently, two sports stories caught Jon Jacobs' eye by showcasing opposite poles of an issue many financial services professionals grapple with every day: the perceived relationship between job performance and age. Read his thoughts here.

Keep Going, and Going, and Going...

A lot of Baby Boomers are working past their retirement dates, says the Gannett News Service, and a fair number of them are going so by choice. Interestingly, a lot of the options touted by experts include positions that seem uniquely suited to folks with accounting backgrounds. They include:

• Management Analyst
• Professor
• SCORE Counselor
• Controller
• Consultant

Many baby boomers are continuing their careers [Gannett News Service via the Star Press]

Golfing For Business

We've all heard that golfing together is a widely used tool for forging connections among business associates - especially service providers (such as accountants) and prospective clients. There are even statistics to prove it.

In 2002, Starwood Hotels surveyed 401 business executives about mixing golf with work. A recent AccountingWeb commentary mixed information from the Starwood study with tips from Debbie Waitkus, a consultant and business golf-coach.

Here are some key tidbits: 97 percent of the executives surveyed called golf with a business associate a good way to cement a relationship, and 92 percent said they use it to make business contacts. About half said it helps them win customers' business. On the other hand, it's important to show your best behavior while golfing for business. Most executives said that if someone cheated or was a "hothead" on the golf course, they'd peg that person as prone to commit the same sins at work. (At the same time, 82 percent admitted to cheating on the golf course themselves; a similar number admitted to cheating in business.)

Is golf just “A good walk spoiled” or a premier business tool? [AccountingWeb]

Good Accounting Saves BODs' Jobs

Want to keep your seat on a corporate board of directors? Implement more systems and internal processes to ensure that accounting mistakes come to light early on, so you avoid the need to restate any earnings.

That’s one of the conclusions reached by a Haas School of Business at UC Berkeley study that examined what happened to board directors in the wake of restatements.

Assistant Professor Jo-Ellen Pozner studied more than 300 earnings restatements filed between 1997 and 2003 by 266 S&P 1500 firms. She looked at when the restatement occurred, the reason for the restatement, the company’s performance, and how long individual directors stayed with a company after the restatement.

She then compared directors at those companies with directors at a control sample of “clean” companies and concluded that corporate board members associated with firms that restate earnings may lose their jobs for reasons that have nothing to do with the numbers.

Patterns emerged, showing board members did not have to have held their positions at the time of restatement to be stigmatized, or guilty by association, to lose their seats on other boards.

“We like to think that we choose directors based on a rational assessment of their skills and track record, but this does not appear to be the case. Instead, it’s like a witch hunt. Companies get nervous about associating with other tainted companies, and their directors are essentially used as scapegoats,” says Pozner.

When a director’s individual skills are outweighed by this negative stigma, rather than any substantive facts, many board members step down to disassociate themselves from the stigmatized company, she found. Even if they leave, tainted directors face an increased probability of losing seats at other companies, although Pozner adds, “It is difficult to know for sure if they leave voluntarily or are asked to leave.”

Directors who managed to hold on to their seats until the end of their terms were more likely to be judged by the severity of the actual restatement.

“In the third year after restatement, outside directors are much more likely to lose seats on other boards if the restatement reduced income, if it was the result of fraud, and if they were in office at the time of the restatement,” according to Pozner’s paper.

Deloitte Plans Layoffs in U.S.

Deloitte & Touche will cut about 900 U.S. employees, or about 2 percent of its workforce, because of the slowing economy. "Just like anybody else, we are looking to cut costs," spokesperson Deborah Harrington told WebCPA. The cuts are expected to occur soon, and aren't focused on any particular location.

Deloitte to Lay Off 2 Percent of U.S. Employees [WebCPA]
Update: Deloitte Statement on Layoffs [Re:The Auditors]

Tax Environment Builds Demand for CPAs in N.Y. Area

Changing federal and state tax regulations for are pressuring tax accountants in New York and New Jersey. Here's our story.

What IFRS Means for You

The Securities and Exchange Commission yesterday said it plans to publish a proposed Roadmap that could lead to the use of International Financial Reporting Standards (IFRS) by U.S. issuers beginning in 2014, although a firm decision on the change wouldn’t be made until 2011. Included in the Roadmap are seven pit stops that will pass before the 2011 decision is made.

The SEC will publish the proposal at its Web site any day now and the public then has 60 days to share comments.

What does it all mean for accountants? The answer depends upon where one works.

If you’re working at one the 110 largest U.S. firms, your firm might have the option to switch over to IFRS for 2009 statements. At small businesses, the switch wouldn’t come until 2016. Those working for firms that are smaller than a global conglomerate and larger than a local ice cream parlor could start using IFRS in 2015.

If you’re still in school or preparing to take the CPA exam, you’ll need to consider the testing ramifications of IFRS.

Kaplan Schweser vice president of CPA education Denise Probert says IFRS won’t be on the 2009 CPA exam, but it could show up after that. So if you’ve been procrastinating on taking the exam and didn’t learn IFRS in school, you’ll want to test before those IFRS questions show up. If you’re still in school, be sure you take IFRS courses before 2010.

Not surprisingly, Probert points out that review providers, including her firm, are already working on integrating IFRS into their review programs. The AICPA also has IFRS continuing education programs.

Meanwhile, if you want to read up on IFRS, try these Web resources:

AICPA’s IFRS Web site

KPMG’s IFRS Web site

PWC’s IFRS Web site

E&Y’s IFRS Web site

Mind Your Grammar

We all know that a spelling error on a resume means instant death. Well, grammatical errors can be fatal too. Here's our story, filled with tips for insuring your resume is grammatically correct.

Crossing the River

If you began your career as an accountant in the corporate world, moving over to a public accounting firm can pose challenges that may include a pay cut. The path is smoother for those switchers who already possess a CPA license and/or prior public accounting experience. Our story details the ins and outs for mid-career accountants moving between the corporate and public worlds.

Where Outsourcing is Headed

Information gurus increasingly see outsourcing migrating up the corporate food chain. No longer confined to clerical functions and things like call centers, today it's embracing activities that have a higher knowledge content – especially in the financial services industry.

A recent article by InformationWeek writer Chris Murphy outlined some current issues related to "business process outsourcing" (BPO) morphing into "knowledge process outsourcing" (KPO).

Many expect financial services companies to lead the way in KPO, and there's data to support such a view. For example, 45 percent of financial services executives who participated in a recent InformationWeek Analytics survey said they see the industry knowledge of their business process outsourcing (BPO) providers significantly improving. That's more than any other area of improvement.

Murphy says the impetus to outsource knowledge-related functions gains further support from a signficant minority of companies that view outsourcing in terms of strategic goals like transforming processes and increasing revenue – rather than simply a means to cut costs. For instance, about 15 percent of the 110 financial services IT professionals surveyed by InformationWeek Analytics fell within that "strategic outsourcing" group. And an additional 24 percent said BPO is "more strategic than tactical".

Even though outsourcing is mature, 28 percent of companies surveyed said they plan to make greater use of it, dwarfing the number planning to decrease their use. That suggests that much of the increase will involve new functions falling outside managements' traditional comfort zone for outsourcing.

But the same survey also sheds light on some management concerns about outsourcing that sound particularly salient for financial companies when they transfer functions like capital market research and sell-side equity research support.

It takes a high degree of trust to transfer custody of customer data, share tacit knowledge and work as a single team. Yet the No. 1 concern financial services companies have about BPO is data security, according to InformationWeek Analytics.

Other top concerns include the difficulty of managing outsourced processes, tension between employees and outsourcers, and less flexibility to innovate. Murphy observes:

Only 16 percent of financial services respondents said they see improvement in vendors assigning quality people for their projects. Companies that aren't getting bright ideas and top people on everyday projects won't likely rush vendors up the knowledge stack.

CFOs Highly Value IT Experience

If you hope to ascend to the CFO's suite, information technology experience is a hot ticket. And its value continues to grow.

Technology topped a list of four areas (beyond accounting and finance) that CFOs picked as most useful for their careers in a recent poll by Robert Half Management Resources. The other three areas were operations, legal, and sales and marketing.

Half of the 1400-plus CFOs surveyed by telephone pegged IT experience as "most beneficial for CFOs to possess." What's especially interesting is, the proportion has nearly doubled since 2003. When Robert Half posed the same question to CFOs five years ago, only 28 percent tagged technology as most beneficial.

Paul McDonald, executive director of Robert Half Management Resources, noted that

Companies increasingly expect their CFOs to provide insight into the value of new systems, evaluate the outcome of potential upgrades and make recommendations on technology-related investments.

Operations experience also ranked high, with 45 percent of the response – virtually unchanged from five years ago. (Respondents were allowed to name more than one area.) Legal experience rose to 37 percent, from 26 percent in 2003. Sales and marketing edged up to 26 percent, from 24 percent.

The survey was conducted by an independent research firm and used a random sample of U.S. companies with 20 or more employees, stratified by geographic location and size (number of employees).

A Candidate's Checklist

If you've been job-hunting for several months with little to show for it, this would be a good time to step back and examine where you might be going astray. Our story sets out a 10-step checklist of items you should be doing to maximize your chances. Read it here.

Tuition Benefit: Unanswered Questions

Ninety-five percent of employers say they provide tuition benefits for employees and reimburse staffers for other forms of professional development or training. That very predictable bit of "news" is trumpeted in a press release from Accountemps, Robert Half International's temporary services division.

What Accountemps' latest survey factoid made me want to know is:

1. What percentage of employees' requests for tuition actually get approved? Presumably, at least 95 percent of the 95 percent have conditions attached to their reimbursement programs. Such as, the courses must be demonstrably relevant to the employee's current job duties – not just for the job or career that he or she hopes to have two years from now, or five years from now.

2. What is the typical percentage of tuition that employers promise to reimburse? And what is the annual cap on the dollar amount? Even when a program is unquestionably relevant to a staffer's current duties, if the request to attend was initiated by the employee rather than the boss, few companies will pay the full tab – especially if it runs into thousands of dollars per academic quarter.

3. What are the typical clawback provisions? In a previous job, everyone's employment agreement stated that the company had the right to recover any tuition reimbursements they'd paid out, if the employee left within two years after completing a course or program.

These are only a few questions that occcurred to me as basic components of any useful poll on this topic. The results might not make for breezy, promotional press releases of the sort that Accountemps churns out month after month. But they might help candidates draw realistic comparisons among employers on this one dimension.

A further question would be tougher to address in a survey – which perhaps makes it still more useful for candidates weighing a particular employer: Are tuition benefits open to all categories and levels of staffers (subject of course to the requisite approvals)? Or only to managers, "producers," staffers below age 30, or other privileged groups within the organization?

That's a question you're not likely to see official, forthright answers to. But it's one that candidates should at least think about when valuing the tuition benefits anticipated from any employer.

Like all benefits, tuition reimbursement is provided not to aid an employee's career, but because an employer anticipates that the education they're paying for will measurably benefit the organization through increased sales or lowered expenses. So if you're not in a role that measurably contributes to either sales or cost reduction (including risk reduction), you won't be a likely candidate for tuition reimbursement.

Wikimedia Foundation's CFO

California's many non-profit and education organizations offer some of the best opportunities for CPAs who want to advance their careers. Veronique Kessler has spent most of the past decade - more than half her career - working for such organizations.

In February 2008, she assumed the role of chief financial officer of the Wikimedia Foundation, whose Wikipedia online encyclopedia has become one of the world's most popular Internet destinations. The foundation also produces online books and other publications.

Here's a profile.

Bypassing Campus Recruitment

It's by no means a wave, but it is something of a trend: Some graduate business school students are opting out of the traditional campus-recruitment approach to job-hunting.

Instead, reports The Wall Street Journal, they're developing their own strategies and building their own networks, all with an eye toward landing a job that might not be considered "typical" among newly minted MBAs.

It often taken them longer to find a job, but their efforts are spurred by the realization that want to work at something that's not a traditional finance or consulting position - the kind of job big firms usually recruit for on-campus. Other students decide they want to remain in a particular region, while still others have put their eggs in the basket of an industry that's "known for just-in-time hiring, leaving students with no option but to hunt later on their own." Such industries include venture capital and media and entertainment and media and entertainment, the Journal says.

Though small in numbers, these students are prompting their schools' career offices to revise their approach and work more with individuals, leveraging their alumni networks and setting up self-directed programs for job-seekers. On the other hand, some schools - like Columbia Business School - can't provide such assistance until after its traditional recruiting period ends in February.

What's Your Vision?

In an earlier post, Steve Bohler explained why it's important to create a "Personal Career Vision" before you leap into a job search. Once you've done that, it's time to stop the daily mad rush, reflect on where you've been and where you are now, and assess where it is you want to end up. Here's his approach.

Notes from an Internship - Week 6

During my last days, my internship came full circle – I was assigned to the government client I worked on first. When I was on this client during the beginning of my internship we were in the audit planning phase. By the time I returned, the actual audit was underway. The senior, Vakela, was really good to work with. I appreciated her approach to training me. She explained things thoroughly so I understood completely from the start. I also worked with an associate, Crystal, who is entering her second year with the firm. I think the three of us made a good team.

On Thursday there was an 'end of the internship' event. All the Atlanta interns went to see an improvisational performance at the World Theater. I am usually not a big fan of improv, but I have to admit I really enjoyed this event. It was great to see the other interns who I had not seen for a while.

On Friday, we learned whether we were offered full time jobs at KPMG. Most interns met with their Performance Management Leaders (PML) to learn about offers. Since mine was out of town I met with my recruiter, Kathryn. We had a pretty relaxed conversation and then she handed me a folder with my offer inside - which I accepted! The perfect ending to a perfect summer internship.

I packed up my car for the long drive back to Ohio. I was definitely looking forward to spending some time relaxing with my family and friends before my classes start. During the ten to eleven hours in my car I had plenty of time to reflect on the past two months. This internship has surpassed my expectations. I learned so much about working in audit, I met incredible people and I had a lot of fun.

One of the greatest parts of my internship has been the incredible people I have met. KPMG really recruits some great people, it’s humbling and it makes me want to work harder and improve myself. For example, one intern, Calvin, owns his own technology business and is extremely intelligent. Every time I spoke with him I learned something new. And I always love learning about different countries from my peers with diverse backgrounds. I feel that I developed just as much from being in the presence of these awesome people as I have from the work experience.

I am very happy with my choice to join KPMG after I graduate and I cannot wait to see what will be in store for me!

Good Advice

Here's a great post from HispanicBusiness.com on some aspects of career management that are important, but don't always get the care they should. It covers your relationship with your boss - which everyone thinks about - but also your dealings with subordinates, which we all should consider more than we probably do.

One of the cornerstone commandments for any supervisor is to train jour replacement! If no one else can do your job, how can you be promoted to bigger and better things?

Training your replacement involves assigning, teaching and providing feedback to assistants. To be fully effective at this, you must personalize your efforts for every employee because each has differing personalities and experiences. In spite of stereotypes that imply that all accountants are clones, the truth is that "one size does not fit all."

Read it here.

What's Going On Out There?

A shaky global economy, rising oil prices and falling home values have cut into the optimism that accounting and finance professionals typically report when asked about their employment prospects. More than half of those recently surveyed believe there were fewer jobs available at mid-year 2008 than there'd been in previous quarters. Is their perception accurate? Maybe.

Dona Dezube explains why.

The Pipeline Keeps Filling

One of the most popular courses at San Diego State University is Accounting 321: Integrative Accounting Topics. The Los Angeles Times describes why:

Even in a downish economy, accounting students are finding jobs -- jobs that just might be the first step toward running their own companies, or getting that corner office in an established business.

...

The boom in accounting at San Diego State is part of a national trend. Enrollment in accounting classes is up 19% since 2004, according to a survey by the American Institute of Certified Public Accountants. The increase in interest has left some campuses unable to accommodate all comers. In fact, the survey found that 13% of campuses had to turn away students who wanted to study accounting because of a lack of adequate classroom space or teachers.

The whole story's here.

Compensation Keeps CPAs in N.Y., N.J.

CPAs in New York and New Jersey have a good reason to stay in the area: money. With a large number of regional and large accounting firms needing help and the preponderance of corporate accounting spots going wanting for accountants, area CPAs are reaping the benefits of demand.

Here's Myra Thomas's story.

Debating Ageism

A while back, we published an article on job-hunting for people over 50. Among other things, we said:

Laura Hill, a Manhattan-based career coach and founder of Careers in Motion, agrees that experience counts. As increasing numbers of baby boomers retire, she says, "Companies need seasoned people who can mentor and train and troubleshoot with good judgment."

Further, an upside to age is that "you have a very long track record at this point," she says. "If a 28-year-old or a 38-year-old has a one-year job gap on his resume, it's a real question mark. As you enter your 40s and 50s, your shelf-life is longer."

Comments on the article have been mixed, some expanding on the theme while others disagreed. Last night, this comment appeared:

This entire article is completely pathetic.

If you don't put a date on school information, the first questions asked during a phone interview is an attempt to find out when you graduated. How is this any different than asking your age? If you include your graudation date, you don't even get a phone interview. Is that "perceived discrimination?" No -- it is just descrimination.

I happen to be employer and doing work I enjoy. But I constantly hear co-workers made comments about job applicant's age, e.g. I can't hire him -- it would be like have my father working for me.

This article is an insult.

I thought I'd put it out there. Anyone care to join in?

Notes from an Internship - Week 5

The journey back home to the United States was not too bad. Dealing with my luggage drove me crazy though – I will definitely be sure not to pack so much for my next trip.

On my first day back in KPMG’s Atlanta office, I was assigned to a client right away. The client is in the industrial sector, which is a familiar territory since I worked on clients in this sector during my rotation in London. My senior, Angus, explained what I would be working on for the week. Since this would be the first time KPMG is working on this new client, the workload was a bit heavy as we did not have a prior year’s file to go off of. We had to make sure we collected all the necessary documents to test the controls required. The client’s accounting department was nice, but initially seemed reluctant at times to give us all the information we requested. Angus did a great job of explaining why we needed the documents requested and in no time we had everything we needed to complete our work. One internal accountant made a few jokes about hiding from the auditors. What’s that saying? “There’s truth in jest or something like that.” LOL

By the way, Angus is actually here on a two-year international rotation from KPMG Hong Kong. He returns home next spring. Throughout the week, during lunch, I picked his brain about what Hong Kong is like. I’ll be studying abroad there this fall so I’m sure any information I can get will be very helpful.

This week we had longer days than I’d been used to coming from London’s 35 hour standard work week. But I found time went fast when I kept busy. I had a few major tasks surrounding fixed asset depreciation analysis, cash account reconciliations, intercompany account reconciliations and preparing memos.

Friday morning I headed to the office to meet with my Performance Management Leader, or PML, for my exit interview. I lucked out because I was assigned to Brad Benton, the lead Audit partner for the Southeast region. We spoke about my time in London and changes needed to implement IFRS. Then I drove back out to the client site and put the last finishing touches on my work. It was a busy but productive week. I can’t believe I only have one week left.

Avoiding Interview Arrogance

We've all heard that it's important to project confidence when you interview. Some candidates, however, sabotage themselves by coming off as a little too confident. That's hardly surprising, because the application and interview process creates myriad pressures to act anything but humble. Employers hold out for the "ideal" candidate, demand recent experience that precisely mirrors their current opening, and proclaim that they seek "individuals with an extraordinary record of academic or professional achievement….who have demonstrated remarkable talent."

Successful interviewing, therefore, calls for a delicate dance between self-promotion and self-effacement. Here's our story, which outlines a few situations where it's especially wise to err on the side of humility.

Spreading Out

Here's another CPA firm offering marketing services to its clients:

The accounting firm of Bryan P. Fitzsimmons, CPA now offers marketing services to help grow and support businesses.

...

The new marketing services offered through Bryan P. Fitzsimmons, CPA include individual consultation with clients to learn about their businesses, goals and plans. A marketing report will then be prepared that will offer suggestions to address those items discussed in the consultation.

A while ago, we reported on how California's Armanino McKenna had created a communications consulting division.

We still think this is an interesting movement, where firms of various sizes are looking for new opportunities to leverage their close relationships with clients in strategic ways - and ways which go beyond accounting and finance. What it means for accountants themselves is anybody's guess, but we're betting it's going to make soft skills even more important for those who aspire to firm management, since they may end up managing people in professions the typical CPA isn't all that familiar with.

Come Home to Long Island

A couple of high school teachers, one of them a former accountant, have launched the Long Island Accountants Network to recruit college graduates to come back to the island to work in the accounting industry. Their idea is to identify talent for local firms who can't spare the resources to attend career fairs and other events themselves, says the Long Island Business News. It's a nifty idea, though it's aiming at candidates who aren't the most in-demand right now - the CPA with a few years of experience under her belt.

AMS Opens Manhattan Office

Accounting Management Solutions, Inc. (AMS), Waltham, Massachusetts, has hired Michael T. Whitney to direct its new Nonprofit Client Practice in New York City. The Manhattan office will offer outsourced accounting, financial management, and consulting services to nonprofit, public, private, and professional organizations in the metropolitan area.


Previously, Whitney was a managing partner with Carnevale Niles Whitney & Davis, P.C., in Upstate New York.

Currently, the firm is seeking senior financial consultants with not-for-profit experience who can help the company supply outsourced accounting services and interim financial management to not-for-profit firms, Whitney says

Fundamentals of the Functional Resume

If you have a background that's not traditional for an accountant, or you're considering a career change, the Functional Resume Format may be your best option.

Here's a story.

L.A. CPA Firm Reacts to Slowdown

In a possible sign that demand for CPAs is belatedly being pinched by the slumping economy, Green Hasson & Janks, one of L.A.'s largest full-service accounting firms, plans on adding only "a handful" more accountants, after doubling in size over three years through acquisitions and new hires. Managing Partner Leon Janks even says he may upgrade the present staff by replacing some people with higher-quality new hires from a growing pool of talented candidates.

Along with strong technical and communication skills, the firm prefers experience in taxation, real estate, waste management or not-for-profits, especially with a Big Four or large regional firm.

Here's our story.

Changing Roles

You've heard the role of accountants is changing. Here's another hint about it. A survey by payroll firm Perquest, based in Oakland, found accounting firms are increasingly asked to take on tasks "outside the normal comfort zones."

70 percent of accounting firms will provide more tax planning services in 2008, and 60 percent will provide business management and advisory services.

Meantime, 60 percent say they're still finding a shortage of qualified job candidates is a "barrier to growth."

Here are details, in pdf format.

Notes from an Internship - Week 4

London Final Week
On Monday and Tuesday I was stationed in the office. I continued working on the client from the previous week. I liked being in the office because it allowed me to meet more people. On Wednesday I completed the client work in the morning and then took the afternoon off. Later that evening I met up with some interns at a local pub. That night some of us went to Brick Lane which had various clubs and restaurants. The area had a lively atmosphere and it was easy for us to enjoy ourselves without spending a lot of money.

On Thursday and Friday I finished up work and other assignments in the office. I went out to lunch with Xiaomiao and two other associates on Thursday. Throughout lunch, I tried to talk them into doing rotations in the U.S. I think they began considering it by the end of our meal.

Friday was bittersweet, since it was the last day of my rotation in London. While completing my final assignments, I had a conversation with an associate, Fabio, about the cultural differences between the states and the UK. Before I knew it, it was 5:30 p.m. I turned in my laptop, said my last goodbyes and left for my flat. Later that evening I hung out with the other interns for our last social outing.

The next day, my taxi arrived at 5:30 a.m. and a few hours later I was back in Atlanta. Everyone I met in London was really awesome. I wish I had a few more weeks with them. Overall, my global internship experience was incredible. I learned a lot of new skills, most of which were more on the soft side since summer tends to be a slow season for accounting. I was also happy that I was able to apply some of the basic accounting principals that I learned in school, since most of my assignments were straightforward. On a few occasions, I was exposed to International Financial Reporting Standards (IFRS) while working on a client.

After staying in London for a month, I feel more confident in my ability to work and live in a different place. I learned a lot about what it’s like to work in London and how important it is to be flexible and adapt to different cultures. One of the biggest differences I noticed between interning in the UK and U.S. is that in the UK it’s not necessary to study accounting in order to work for an accounting firm. The interns had majors ranging from history to biology. The U.S. definitely gives more technical work since interns are required to study accounting. I like the fact that in the U.S. we can take the certified public accounting (CPA) exam sooner and can hit the ground running.

Living and interning in another country has allowed me to grow professionally, culturally and in so many other ways. It’s so enlightening to just live somewhere else and meet people who have totally different perspectives than the ones at home. I feel I am more aware of how business is conducted on a global level. And most importantly I feel like a door has been opened for me - living and working abroad is something that is a definite possibility, which I might not have considered if it weren’t for my global internship.

So I return to the U.S. with high hopes, stronger business experience, too much luggage and new fondness for Europe. I hope to keep in contact with the other U.S. interns. And I will make sure to use Facebook to the max in order to stay in touch with the British interns. Summer 2008 has definitely been amazing so far.

A Fast-Growing Sideline

Specialized tax and business consulting practices are growing by leaps and bounds in the New York and New Jersey area. Although these firms can open new career possibilities, some CPAs can't make the leap. Someone who only worked on the audit side of a CPA firm might find it difficult.

Here's our story.

What Dispute Resolution Involves

The Web site of the Metropolitan Corporate Counsel has a nut-and-bolts interview with Bryan H. Jones, Dispute Advisory Services leader for KPMG Forensic. It's an in-depth look at exactly what goes on in this area. There's no easy pull quote here, but if you're interested in the mind set of dispute-resolution professionals, this is worth the ten or 15 minutes it'll take to read.

The Important Role Of Accountants In Dispute Resolution [MCC]

Not So Sweet

The flexibility that makes contracting attractive to many tech folks may be in danger. In today’s Wall Street Journal, columnist Sue Shellenbarger describes how more companies are taking up electronic monitoring of home-based independent contractors. That means they’re tracking keystrokes, taking screen shots and even peeking in via webcam.

The trend suggests the home office, long regarded as a calmer place to work, may evolve into just another office, fraught with the same constraints as a corporate cubicle.

Secular Forces Cushion Accounting Jobs

While both the overall U.S. economy and the financial sector represented by Wall Street hemorrhage jobs, a range of secular forces we have long spotlighted – the march of globalization and related evolution of reporting requirements, stepped-regulation, heightened emphasis on internal controls and risk management – continue to generate opportunities for accountants, analysts and financial executives within corporations.

Here's our story.

Pulcini Joins Goldstein Lewin

Mary Gullotto Pulcini joined Goldstein Lewin & Co. in Boca Raton Florida as an audit principal. Over 15 years, she has provided services to clients in manufacturing, distribution, hotels, time-share development and services. Previously, she was an audit director at McGladrey & Pullen in Fort Lauderdale. She also worked as a senior manager at American Express Tax and Business Services. She has a Bachelor of Business Administration degree from the University of Miami, and a Master's of Accounting from Florida International University.

More here.

Executive Changes at Amper, Politziner & Mattia

Phil Politziner has become chairman of New Jersey's Amper, Politziner & Mattia after serving as president and chief executive. Howard Cohen, formerly parter in charge of the Edison, N.J., office, succeeds him. David Politziner, Phil's brother, becomes chief operating officer.

Here's the story from WebCPA.

Risk Management Jobs Boom in Chicago

Demand for experienced risk managers is climbing in the Chicago area, as the credit market blowup prompts large financial institutions to impose tighter controls on their own activities.

Recruiters active in Chicago report hiring in areas of portfolio-level risk management and enterprise risk management. Positions are open both within financial institutions and accounting firms that serve them.

Here's our story.

Notes from an Internship - Week 3

Paris was awesome! It was cool to see the Eiffel Tower, Mona Lisa, etc. I returned to London on Monday morning and got in with enough time to go home and freshen up for work. Living in central London is so convenient.

My Monday was busy since we were prepping for a half-year review engagement later in the week. I was assigned several tasks to complete for the review, so I compiled them into a list and prioritized. The end of the day seemed to come in the blink of an eye.

Tuesday was no different although I did get a break to go on a field trip to pick up copies of a client’s board meeting minutes. I had to make a summary of the minutes so we could see if the board of directors made any important decisions for the first six months of the year. After completing the summary, I headed off to a meeting for all the global audit interns, at which many KPMG audit leaders spoke about their experiences working in audit. Among the leaders was James Conway, the COO of audit, who shared his thoughts on global rotations, career progression, the auditing profession and working at KPMG. We had a lot of fun and didn’t end up leaving until after 8 pm. Of course the late work evening didn’t deter us interns from going out for a while afterwards.

Wednesday, I finished up more prep work and then packed and shipped a box of supplies via courier to a client site so we would have them when we arrived there the next morning. Then I headed about two and a half hours north of London via train to the hotel where we were staying for the rest of the week to be close to the client.

Thursday was a long day, but very productive. I tracked work papers, prepared an analytical review between the current and previous periods and learned a lot about the client and how it manages its business. That is definitely one of the best things about auditing - you learn so much about different industries and different types of companies and how they operate. I hope to audit companies in many different industries early in my career so I can gain a more well-rounded knowledge of business.

Friday, we finished up the rest of our work at the client site and then headed back to London. All this traveling is definitely teaching me to travel light! I got back just in time to meet with some of the interns for another social activity. (Who says accountants are boring, right?) We had a small party at our flat and then eventually headed to a club that plays drum & bass, which I honestly never had heard of before. Everyone dances to it like they’re having convulsions but it’s actually really fun. They definitely know how to have a good time in London! After recovering on Saturday, I went out to do some more shopping and sightseeing - my last weekend in London, but at least it was a fun one!

Podcast: Earning the CMA Credential

Listen in as the Institute of Management Accountants ' John M. Brausch, CMA, CFM, CPA, talks with Contributing Editor Dona DeZube about obtaining the Certified Management Accountant credential, including his experience in preparing for the exams.

Dona's interview is in two parts:

• The Basics
• The Mechanics of the Exam

The vice president-property controller for Edens and Avant, a developer and owner of retail shopping centers, Brausch is chair of the Institute of Certified Management Accountants Board of Regents, and was a member of its exam review committee. He's also chair-elect of the IMA's national board and chair of its planning and development committee.

Career Change Blueprint

If you're unhappy with your current work, just switching jobs or employers probably won't help, says career-change coach Steve Bohler.

Instead, he argues that successful moves are rooted in a "personal career vision" that gives a central role to the person's natural talents, desires and values.

Here's the story.

2007 a Good Year for Finance Professionals

Treasury managers’ and finance managers’ average pay was up 6.6 percent in 2007, while other mid-career professionals, including treasury directors, saw pay increases of 5.4 percent on average, according to the Association for Financial Professionals’ (AFP) 2008 Compensation Report.

AFP’s survey of 5,000 members at 2,000 companies found slightly more modest increases for chief financial officers (4.6 percent), vice presidents of finance (5.6 percent), assistant treasurers (5.1 percent) and cash managers (5.0 percent).

Bonuses were healthy last year, too. On average, those surveyed got bonuses equivalent to 16 percent of their base compensation, with executive-level financial professionals reporting the largest average bonuses both in total dollars received and as a percentage of their base salary.

The average base 2007 salaries reported by the survey include:

CFO: $185,700
VP of Finance: $171,500
Treasurer: $161,500
Treasury/Finance Director: $123,300
Manager Treasury/Finance: $97,300
Assistant Treasurer: $124,800
Cash Manager: $73,200

The survey also found that AFP members who have earned an MBA make 19 percent more than their counterparts with a bachelor’s degree.

Other factors that contributed to higher salaries included certifications such as the CTP, CPA, CIA or CFA, the respondent's contribution to profitability, job location and industry type.

Given the current tough economic conditions, what’s likely to happen to salaries this year? While AFP doesn’t have compensation data for 2008, its researchers sense is that the critical role played by finance professionals in this year’s market means those in this niche will remain in great demand, so compensation will keep pace with or exceed the pay raises given to those in other departments.

“Obviously, we don’t have any 2008 data,” says AFP spokesperson Allan Jordan, “but what we’re seeing is that the treasury role inside the company is critical in a bad economy.”

Anecdotally, AFP is hearing that the job market is balanced for finance professionals. No one is talking about cut-backs and positions are being filled, he adds.

California Opportunities With E&Y

After promoting and relocating several top managers within California and Arizona, Ernst & Young expects to add as many as 50 new positions each in its separate offices in San Diego and Orange County, Calif.

New Orange County office head John Belli and San Diego chief Mark Stephens plan to recruit both inside and outside California for a broad range of functions, including tax and audit. CPAs with at least three years of experience will make up about one-third of the new hires.

Here's our story.

Strong Year? Weak Year?

Apparently, it depends on who you're talking to.

With all the focus on demand for accountants, we sometimes forget that big firms - or small ones, for that matter - have their trials and general angst, just like any other workplace. Francine McKenna, on her blog re: TheAuditors, has a knack for uncovering many of the day-to-day shenanigans of the Big Four. You think things are always hunky dory just because you're a CPA and there aren't enough of them on the market? Try this on.

So, This Accountant Walks into a Bar

WebCPA profiles comedian John Garrett, a former CPA who finds humor in taxes.

I think the U.S. government should write a song called, 'Whatever Happened to Willie's 1040s?'"

Here's the story, and his Web site.

How's the Job Market?

We asked JobsintheMoney users how the job market is for accountants. They said:

• As strong as ever: 52%
• Weakening: 19%
• Slowing down some: 13%
• Not sure: 10%
• About even with last year: 6%

So now we're wondering whether firms are letting go non-accounting staff. Let us know by taking the poll on JobsintheMoney, or by posting a comment below.

Traits of a Good Accountant

From the career section of Bella Online (the voice of women) comes this list of Characteristics and Personality Traits Shared by Successful Accountants.

Pay Gains For Management Accountants – Especially Men

Management accountants earned an average salary of $101,805 and average total compensation of $120,972 last year, based on more than 1,500 responses to the Institute of Management Accountants' 2007 salary survey.

Average pay gained 6.2 percent. But pay was highly sensitive to gender, and the gap between male and female members' salaries and bonuses actually widened.

When JobsintheMoney asked the Institute's chief executive if his group planned any steps aimed at closing the salary gap, his response was: "We're not going to comment on the glass ceiling and the real or perceived inequities. We can make sure our association is open and inclusive and appealing to not only the old demographic or the new demographic."

Here's our story.

Notes from an Internship - Week 2

As my second week in London draws to a close I realize that time is really flying. Half of my four weeks in London are up and I need to make the most of the two I have left.

This past week I spent two days in the office and three days at a client site. While in the office I helped various associates and managers who had extra work. One project I helped with involved researching and compiling information on the major accounting policies assorted pharmaceutical companies disclosed in their annual financial statements. This information is to be included in a handbook that describes market issues and risks in the industry, and best disclosure practices for both International Financial Reporting Standards and General Accepting Accounting Principles. The handbook will be provided to KPMG clients all over the world. I got a chance to look at the previous year’s book and felt proud that I was actually able to contribute to this year’s edition.

Tuesday night, I participated in an engagement planning meeting where we discussed a client’s history and expectations while we were on site. The client is an energy industry company and a global client of KPMG. I was relieved to see that the partners, managers and everyone else in attendance at the meeting were really laid back, and while they meant business, the atmosphere wasn’t stuffy or tense. Following the meeting, everyone went out to a nearby pub for drinks - something that is really common after the workday in London.

The client was only a few tube stops from the office, so fortunately I didn’t have to travel far. Since the company is so big, the engagement was broken into several small teams to tackle different sections of the company. I helped out with extra work and did a bit more research. I really enjoyed working with the team and was fascinated to learn that I wasn’t the only one on a global rotation - the manager in charge of the engagement, Jeff, is on a long-term global rotation from Canada. He told me about his experiences with KPMG in both Canada and London and his decision to complete a global rotation. The associate on the engagement, Tosin, was really helpful in explaining parts that I didn’t understand. I appreciated her help so I let all her teasing about my "weird" accent slide.

Thursday night all the global interns got together for dinner courtesy of the recruitment team. I met interns from other countries who came to the UK as well as UK interns who would soon go to offices in the U.S. The food was great and the company was even better. It was really an incredible group of people and it was fun to hear about everyone’s respective countries.

After returning to my flat Friday evening I prepared an overnight bag for a weekend trip. I decided I would take advantage of being in Europe and caught a train to Paris to see the sights.

Home Office Essentials and Pitfalls

For an accountant, telecommuting regularly or practicing independently from home is more the rule than the exception nowadays. A recent column by Rick Telberg on CPA Trendlines provides a wealth of practical advice about how to work successfully at home.

To begin with, he lists five key success factors:

1. The right attitude and self-discipline

2. The right technology set-up

3. A quiet, dedicated workplace

4. Experience and maturity

5. Good communications with co-workers and clients

Telberg quotes work-at-home accountants who testify to and elaborate on each factor. He then goes on to list five major challenges associated with working from home:

1. Isolation from peers

2. Meeting clients and colleagues in a professional setting

3. Lack of administrative support

4. Lack of collaboration

5. Reliable benchmarks for performance

Loss of contact with colleagues can produce stress and a risk of being left out of the loop. On the other hand, one of Telberg's sources observes that the telecommuter also avoids much of the stress of office politics.

And there's this problem cited by Robbie Paul, a public practitioner in El Paso, Texas, who works at home five to 10 hours per week: "Clients don’t take you seriously" if they know you're office is in your home.

The Top Five Essentials to Working at Home [CPA Trendlines]