The Changing Tide

By Jamshed B. Gandi

I made several interesting observations in my recent readings that I would like to share with you.

The AICPA’s 2009 Private Companies Practice Section’s CPA Firm Top Issue Survey found that client retention is the top issue for all size firms. This was a dramatic change from 2007, when the top issue was staffing. It doesn’t take much imagination to figure out the reason. In two words: the economy. As to how times have changed, I believe that client retention did not even make an appearance on the 2007 top issue list.

This change, of course, does not bode well for our profession. It may alleviate one side of the equation, but it puts in jeopardy our very bread-and-butter. I have heard of several layoffs in the Bay Area, which is disturbing to say the least. But at the same time, recent indicators seem to reflect a glimmer of hope that the economy may be on the mend and that the bottom is becoming part of history.

I guess this is perhaps an opportune time for firms to take stock in staffing and client matters so as to position themselves for the future. Interestingly enough, and to no one’s surprise, succession planning, marketing to new clients, technical complexities and human capital all took front row seats in the 2009 survey. Another hot item, believe it or not—and not to be in anyway termed an oxymoron—was partner accountability.

But on the other side of the ledger, an encouraging article in cpa2biz.com, is titled SEC Proposed Changes Could Create Demand for CPA Firms from Financial Advisors. The proposed changes to Rule 206 (4)-2 of the 1940 Investment Advisors Act would affect about 9,600 advisers who would be subject to a surprise audit. Advisers who retain custody of client funds are to be impacted. Even though this would provide more work for us, it would not, of course, add to our popularity.

And finally, here is an interesting article from the Financial Times: Accountancy: Gone Are the Days of Preparing for a One-Country Career. Imagine that. A profession guided by national mandates and dictates is soon to be put on a trajectory of globalization. It is hard to imagine the concept of goodwill having a universal definition, but the accounting professions in different parts of the world are now going to try this in earnest.

As I mentioned last month, our chapter will, for the first time, honor a Young and Emerging Professional member for excellence this year. The award will recognize contributions through voluntary work, inspiration to others, dedication to the profession and other positive attributes. Our young and upcoming members are taking leadership roles now and will continue to do so in the not-too-distant a future. This award is a way for the chapter to provide them with a platform from which to achieve greater heights. Download a form to nominate one of your staff.

Our profession lives in interesting times, where change, and change alone, seems to lead the way.

This entry was posted on Friday, August 28th, 2009 at 1:27 pm and is filed under President's Message. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.