Tips for Tough Times from Top CPA Planners
Successful CPA investment advisors plan the work and work the plan.

by Rick Telberg
At Large for the AICPA

The stock market is schizophrenic. Interest rates are jumping upward. The housing boom is threatening to go bust. Investors are dazed, confused and often angry.

So you'd think it'd be a hard time to work as a CPA financial planner? But you'd be wrong.

In fact, there is every indication that established CPA planners are having some of the best years of their careers. If it's true that when the going gets tough, the tough get going, then CPA financial planners appear to be going at warp speed these days.

I recently had the chance to talk to three CPA Planners: Ben Coulter, of Coulter Financial Advisors in Juno Beach, Fla.; Gordon Bernhardt of Bernhardt Wealth Management in McLean, Va.; and Jim Trippon of Jim Trippon & Co., in Houston, Texas. And, to a man, they are each exuberant about business today and their prospects for the future.

"Business is very good," says Trippon. "Wonderful," Bernhardt adds. "Great," Coulter agrees.

But why? Bernhardt thinks he has it figured out:

High-wealth individuals are migrating from commission-based brokers to fee-based and fee-only advisors.
"The downturn," he says, "has made people realize that they are not as smart as they thought they were." And so they are seeking professional guidance.
As research mounts, more investors are turning to better proven strategies, like the passive investing/index-fund/buy-and-hold disciplines that sophisticated planners provide.

To Coulter, the answer lies in the possibility that investors, once burned, have gotten smarter, are turning away from what he terms the "financial pornography" of 24-hours cable news and hyperventilated magazine headlines. "I discourage my clients from being involved day-to-day in investing," Coulter says. "That's what I'm here for."

Trippon, on the other hand, says his success -- not unlike those of his colleagues, by the way -- comes from targeting only the best, most affluent, most receptive clients, and shunning the low-margin distractions of small clients and traditional accounting work. Speaking of running a CPA practice and a brokerage business, Trippon warns: "It's difficult to do both well at the same time."

Maybe the real lesson from all three practitioners is that success is a result of personal passion. They have almost single-mindedly focused on planning their practices and practicing their plans. For them -- and their clients -- it's paying off.

Which tech trends are accountants really following?

After years of deferred spending amid vast technological changes, finance and accounting professionals are revving their IT engines once again.

By Rick Telberg
Special for HP
HP/CPA Tech Advisor
News and Trends Exclusively for CPAs from HP

Finance and accounting professionals appear to be in the forefront of a new surge in technology upgrades and advancements as they reach for increased productivity and profits.

Overall, 3 in 5 professionals surveyed say they will be spending more on new hardware and software over the next 12 to 18 months. That's at least as good, or better, than the rate for small- and medium-sized businesses in general.

Overall, small- and medium-sized businesses will increase their IT spending by 6.6 percent this year over 2003, according to the latest research from Forrester, nearly four times faster than the anticipated 1.7 percent rate forecast for larger companies.

When asked in one study, what's "essential" to business success this year, tax and accounting professionals told the American Institute of Certified Public Accountants:

1. Assuring security and privacy for ourselves and our customers: 77%
2. Getting the most return out of our present systems: 52%
3. Disaster/backup planning and recovery: 52%
4. Upgrading to keep abreast or to go to the next step: 47%
5. Communications and messaging (i.e.: email, spam, IM's, voicemail, online meetings): 47%
6. Streamlining document management (the "paperless" office): 34%
7. Customer relationship management and data mining: 30%
8. Mobility/portability (i.e.: going "wireless," virtual office, working from anywhere): 28%
9. Integrating diverse databases and applications: 25%
10. Business exchange technology (i.e.: online transaction, EDI, XBRL): 10%

So much for the high-level strategy. But what are they REALLY buying? Those answers are slightly different.

Here's the top 10:

1. Software: 88%
2. Desktop computers: 78%
3. Printers and imaging equipment: 71%
4. Notebook and laptop computers: 69%
5. Storage devices (i.e.: CD burners, tape backups, etc.): 61%
6. Servers 57%
7. Networking systems: 57%
8. Peripherals and accessories: 51%
9. Telcom equipment: 33%
10. Handhelds (PCs and PDAs): 28%


Many finance and accounting professionals clearly sense a new urgency in moving forward with technology investments.

While concerned about coming 64-bit technology and its effect on possibly obsolescing older systems, CPA David W. Serfass, owner of his own small firm in Bethlehem, Pa., plans on investing in a new file server this year, adding work stations, upgrading printers and moving toward a more paperless office.

Stu Grant, who also runs his own local firm, this time in Virginia Beach, Va., is looking to build in backup power and memory systems for all his office's PCs and adding faster hard drives to keep pace with software advances.

And some are also feeling the heat of new regulatory requirements.

Richard Connelly, a senior executive at a mid-sized business in Fairview, Texas, said, for example, "Security is the primary reason for our increase in IT spending. Sarbanes-Oxley, HIPAA, and Gramm-Leach-Blilely are requiring us to take a more proactive approach to network vulnerabilities."

The reasons are many; but the effects are the same: Finance and accounting professionals are clearly gearing up for a new round of IT spending. No one, it seems, can afford to be left behind.

The Top 10 Reasons Your Company Doesn't Work Right
And yet, CPAs appear far and away more enthusiastic about their jobs than the American worker in general.

from the Career Insider for the AICPA

While many workers in the United States may fault their companies for lacking vision or organization, you might be hard-pressed to find tax, accounting and finance professionals who fall into that camp.

In fact, CPAs and other such professionals may be among the most satisfied and certain employees in the economy today.

In a poll of AICPA Career Insider readers, for example, 58 percent of respondents said that the goals of their particular firm or company were at least "pretty clear," including 11 percent who said the strategic corporate goals were "crystal clear."

On the other hand, a Harris Interactive poll, commissioned by the Franklin Covey Institute, found that over 50-percent of more than 12,000 American workers don't know their organization's most important goals.

In addition, 81 percent of CPAs say they are personally "mostly" or "totally" committed to their company vision, while only 22 percent of the average worker is "enthusiastic" in the Harris poll.

CPA firms and finance departments are clearly ahead of the game.

"We have changed our structure to track accountability," according to Christine Lauber, head of a local CPA firm in South Bend, Ind. "Now we are working on a firm-wide plan that integrates and communicates with all parts."

Significantly, however, when CPAs are asked about their colleagues' work ethics and attitudes, there's a dramatic fall-off. Only 51 percent of CPAs say their co-workers are as committed to their jobs as they are themselves. The figure closely matches the Franklin Covey results.

And, unfortunately, CPAs say that the company's goals are translated into action only about half the time, in line with other surveys.

So what are the stumbling blocks?

According to the Career Insider study, here are the top 10:

1. Overwhelming workloads, 58%
2. Unclear or shifting work priorities, 56%
3. Lack of resources, 43%
4. Our systems and processes are not properly aligned, 43%
5. There's not enough accountability, 42%
6. We don't meet regularly to review progress, 39%
7. Political issues, like turf battles or personality clashes, 39%
8. Lack of recognition or reward, 34%
9. We don't work together as a team, 32%
10. Upper management doesn't really support the goals, 29%

Griped one middle manager: "Two-, three- or even four-hour meetings are equated as getting things done. But nothing gets done because there is no accountability and we are in meetings all time."

Unfortunately, that wouldn't sound too unusual in most American companies.

CPAs Split on Kerry, Bush
The tax, accounting, and finance community seems as polarized by the Presidential race as America at large.

by Rick Telberg
At Large for the AICPA

An analysis of our polling data reveals extreme and possibly unprecedented levels of polarization among CPAs considering the Kerry v. Bush presidential race.

After an earlier showing in which Bush outpolled Kerry among CPAs by a 2-to-1 margin, the gap has now narrowed to a dead heat, with neither candidate able to claim a clear advantage among the more than 1,700 tax, accounting and finance professionals who volunteered for the study.

But digging deeper into the data uncovers some clear differences in the priorities of the supporters of each candidate.

Bush backers, for instance, rate controlling federal spending as their top issue. Kerry supporters want most to reduce the deficit. The poll did not consider issues such as Iraq and foreign policy or most domestic social issues, concentrating instead on financial and economic matters.

'No mention of non-financial considerations?' noted CPA David Dichner, of Zivetz, Schwartz & Saltsman, in Los Angeles, and a Kerry supporter. 'Money helps,' he said, but it's not as much a consideration 'in a world rife with short-term thinking when setting long-term policies, needless war, greed-driven policies, abysmal treatment of our mentally ill and homeless, underfunded education initiatives, and a tax cut that favors mostly my two eight-figure clients.'

'The most important issues to me and my family are the family values of pro life, traditional marriage, and religious freedom,' said Bush supporter Pamela Disheroon, a CPA in Alpena, Ark.

Among Bush supporters, here are the top five priorities, and the percent of supporters who cited it as one of their top issues:

1. Control spending, 66%
2. Reduce the federal deficit, 52%
3. Stimulate the economy, 39%
4. Simplify the tax code, 30%
5. Fix health insurance, 35%

Among Kerry supporters, the top five are:

1. Reduce the federal deficit, 83%
2. Fix health insurance, 69%
3. Assure Social Security, 56%
4. Create jobs, 56%
5. Close tax-shelter loopholes, 52%

To be sure, the voters' priorities for their chosen candidates do not necessarily reflect the candidates' stated positions.

Clearly, accounting professionals at this stage of the campaign are basing their decisions on perceptions of character and ideological or partisan affiliation. Which is, of course, where much of the rest of the United States electorate stands now.

CPAs Get Ready to Rumble as Economy Revs Up
On the agenda: changing jobs, boosting business, buying a practice, or finally taking retirement. What are your plans?

by Rick Telberg
At Large for the AICPA


Tax, accounting and finance professionals seem to be bursting at the seams to make the business and career moves they've long back-burnered because of a skittish economy, roiling regulatory changes and unpredictable technology shifts.

One middle manger in a local CPA firm has told me he can hardly wait for when his firm's senior ownership retires this year. He'll "begin to transition the firm ownership from the retiring owners to myself." Meanwhile, he also knows he needs to upgrade the technology systems, some of which date from 1970s DOS applications.

Meanwhile, one sole proprietor, who prefers go nameless, says he is deciding to pull the plug on slow-paying clients and focus only on Grade A customers. But he also knows he needs to catch up on his own billing and start to go paperless.

Some of these conclusions are gleaned from a study I just completed among 176 volunteers, about two thirds of them in public practice.

Overall, here are five top strategies that CPAs are implementing this year:

1. Increase revenue and/or profit: 52%
2. Upgrade my office productivity: 49%
3. Expand into new niches or lines: 28%
4. Get a new job: 22%
5. Change underperforming personnel and/or cut spending: 18%

While there's some evident pent-up demand for progress among members in public practice, there is a palpable level of trepidation among members in business and industry.

One middle-level financial manager at a small business has but one major concern right now: "To survive an outsourcing study." Meanwhile, he's already started looking for a new job.

Indeed, members in industry seem, as a group, preoccupied with job hunting, or failing that, going into public practice. It's an interesting reversal from the last several years when public CPAs were flocking to corporate jobs for the supposed perks and security. Today CPAs realize: You are your own boss, whether you work for one client (an employer) or many (as in a practice).

And yet, the differences in business and career objectives between the two spheres of the accounting universe are sometimes stark.

For instance, chief executives and managing partners, by a whopping 2-to-1 margin, are driving for increased revenue and profit this year. So maybe it's no coincidence that 56 percent of staffers say they're looking for new jobs.

Middle managers may be feeling the squeeze the most. Their top objective this year is to upgrade their productivity. They are also the least confident that the economy will be kind to them. Three-in-four middle managers, or 73 percent, expect business improvements this year. That's good, but it's also a significant gap from the 82 percent of senior and chief executives and partners who expect improvements.

Just as middle managers may be feeling pressured, mid-sized firms are too. Fully 86 percent of firms with 11 to 50 full-time equivalents are more confident than not about the economy. But in the area of firms numbering 51 to 100 employees, only 67 percent are as positive.

To be sure, that's all to the good. But the discrepancy suggests a time of troubling questions and tough challenges for many firms as they decide their long-term futures.

CPA testing center opens... in Guam

Guam has taken its first large step in becoming the primary incubator for certified public accountants in the nation with the opening of the new Guam Computer Testing Center. The Bank of Hawaii building now houses a computer-testing center that has scheduled 6.7 percent of all CPA exams in the nation. The center, owned by the National Association of State Boards of Accountancy, can be described as the Fort Knox of CPA testing centers compared to its previous testing sites, such as hotel ballrooms. David Costello, president and CEO of NASBA, based out of Nashville, Tenn., said the $500,000 project is a milestone in that it's the only test center operated by a state board of accountancy, and that the first CPA candidate who tested with computers tested on Guam.

You Know the Job is Getting Tough When...
The SEC is looking for a company shrink to boost morale.

Here's the job decription:
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U.S. SECURITIES AND EXCHANGE COMMISSION
Delegated Examining Unit
VACANCY ANNOUNCEMENT NUMBER: DEU-04-103
Opens: May 20, 2004
Closes: June 10, 2004

ORGANIZATIONAL PSYCHOLOGIST, SK-180-16
(TERM APPOINTMENT NOT TO EXCEED TWO YEARS. THIS APPOINTMENT MAY BE EXTENDED FOR
AN ADDITIONAL TWO YEARS)

PAY LEVEL: SK-16: $101,304 - $147,978 annually

PROMOTION POTENTIAL: None (This is a non-bargaining unit position.)

VACANCIES: One

SCHEDULE: Full-Time

OFFICE/LOCATION: Office of Human Resources and Administrative Services Employee Development and Labor Relations Branch Alexandria, VA. This job is open to all U.S. citizens.n Moving Expenses will not be paid.

WHAT WORK WILL YOU PERFORM
As an Organizational Psychologist, you will:
·Support the U.S. Securities and Exchange Commission in its ongoing effort to be known as one of the best places to work.
·Study, measure, evaluate, provide recommendations and help implement interventions designed to improve employee attitudes and satisfaction related to employee retention, job satisfaction, burnout, conflict and stress. Conduct studies and make recommendations concerning organizational change/redesign, productivity, quality improvement, team building and diversity.
·Contribute new methods or develop new experimental interventions that are of material significance in the solution of important applied organizational problems with unprecedented or novel aspects. Originate and establish unique methods and applications that provide innovative solutions to complex psychological issues.
·Plan, organize and coordinate group efforts on major human capital research projects and process reengineering, productivity and quality improvement initiatives to include the recruitment, hire, and new employee assimilation processes. Coordinate team efforts, assigning projects and monitoring performance, reviewing drafts and resenting final products.
·Develop long-range plans for training activities and establish budgetary requirements and personnel needs. Consult and confer with psychologist and trainers at the highest levels of other government agencies and domestic and international private sector organizations in order to develop and evaluate agency training, research, and direct services programs.

WHAT ARE THE QUALIFICATION REQUIREMENTS
Applicants must have a degree in psychology. A Masters or Ph.D degree is preferred, but not required. Specialized Experience: One full year (52 weeks) of specialized experience at a level of difficulty equivalent to the next lower grade level in the Federal service (GS/SK-14 or SK-15 level) or private sector. GS/SK-15 or SK-16 candidates may apply for reassignment.

QUALITY RANKING FACTORS
Quality ranking factors are used to ascertain the extent of your knowledge, skills and abilities as related to the specialized experience. If you do not address the quality ranking factors to clearly describe the extent of your experience, you may be determined ineligible or receive a low rating. These factors also will determine whether you will place among the top ranked candidates to be referred for interview.

1.Knowledge of human resources laws and regulations, and human capital best practices to serve as an advisor to the human resources staff and program managers.
2.Ability to train in research methodology and project management, and the ability to plan and conduct major studies involving novel or complex human capital issues.
3.Ability to conduct organizational assessments, analyzing options and managing change in the implementation of innovative human resources/human capital polices and programs that resulted in organizational improvement.
4.Ability to communicate orally, in order to articulate and defend policy changes.
5.Ability to communicate in writing, in order to prepare comprehensive reports,
plans and position.

HOW TO APPLY
Candidates must provide all information requested by this job announcement, and submit:
1.A resume or (OF-612) Optional Application for Federal Employment;
2.Separate sheet clearly describing your knowledge, skills and abilities for each quality ranking factor;
3.Copies of college transcript(s) to substantiate educational requirements; and
4.Social security number; beginning and ending employment dates; salary information; and citizenship. This information is necessary to determine if you meet all qualification and legal requirements for Federal Employment.
5.Appropriate documentation if claiming veteran’s preference (e.g., DD-214 and/or letter from the Veteran’s Administration regarding disability status).
If you are a displaced Federal employee, you must attach to the front of your application proof of eligibility such as an SF-50 and/or RIF letter. If you are a displaced Federal employee separated within the local commuting area of the position, your application will be reviewed to determine whether you meet the minimum qualification requirements and, if you are found minimally qualified, then your application will be rated to determine whether you meet the well-qualified criteria established for the position. A well-qualified displaced employee will be referred before any other qualified candidates. Disabled veterans, individuals with disabilities and veterans eligible for special OPM appointing authorities are also strongly encouraged to apply. If you do not provide all the information requested, you may lose consideration for this position. None of these forms will be subsequently loaned or returned to applicants.

“Security Clearance: The individual selected may be subject to a security investigation. Favorable results on a Background Investigation may be a condition of employment or selection to another position.”

FILING APPLICATIONS
Applications should be postmarked and mailed to:
U.S. Securities and Exchange Commission
Office of Human Resources and Administrative Services
6432 General Green Way
Alexandria, VA 22312

Attention: Shielyn Kelly
FAX: 703-914-0571

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