Bookshelf Review

Recommended Reading
From the JofA

More Than a Numbers Game: A Brief History of Accounting
by Thomas A. King
John Wiley & Sons Inc., 2006, 242 pp.

Thomas A. King’s light-handed romp through the annals of accounting history brings together the facts, the data, the personalities and some of the best lines of the past 20 years. King takes a principles-based approach to history, focusing on the big and controversial ideas that have transformed accounting, from the invention of double-entry bookkeeping in the 15th century to the expensing of stock options this year under FASB Statement no. 123(R).

Starting with the premise that honest and intelligent people often disagree in theory and in practice, he balances an obvious respect for the profession with an equal respect for the truth, plus a promise to keep it short and to the point. Add to that some occasional pokes at the inevitable peccadilloes of the profession, and you have the makings of a pleasant-spirited and interesting book. For example, in reference to the “contrariety of tax and financial accounting,” King reminds us that Supreme Court Justice Harry Blackmun, best known for writing the Roe v. Wade abortion decision, held in 1979 that financial accounting should be biased in favor of understating assets, as its primary goal is to provide useful information to investors; but tax accounting should aim to protect the public treasury and improve the amount of taxes collected.

With his solid credentials—a CPA, CMA and Harvard MBA, as well as the current treasurer of Progressive Insurance—King proves himself to be the insider, the historian, the yenta of the accounting profession. More Than a Numbers Game offers enough insights to give occasional pause even to those who have a real grasp of the wheres and whys behind the regulations that are dear to the heart of every practitioner.

—by Cheryl Rosen

Effective Websites for CPAs: Grow Your Practice and Profits
by Kristi Stangeland, CPA
RJ Thompson Publishing, 2006, 177 pp.

Shortening the client development cycle is one of the most compelling reasons for a CPA firm to develop a Web site if it does not already have one, according to author Kristi Stangeland. Keeping clients abreast of change, increasing sales of services and generating qualified leads are a few others. Through a series of interactive worksheets, Stangeland helps other CPAs outline the most pertinent information a client looks for on a Web site.

The first goal is to identify the target market, then summarize the steps needed for client development and prospecting. Provide as much of the specific information a client would look for upfront. “The copy on your site should be written to, about and for (clients) alone.” This not only decreases the length of the sales cycle, it gains the client’s trust and establishes the CPA as a reliable authority, thereby increasing client loyalty, the author writes.

The completed exercises will provide the CPA with a comprehensive plan that a Web designer can then develop into a completed site. Following Stangeland’s proposal process (and subsequent worksheet), readers will learn how to evaluate and hire qualified designers to build their Web sites.

Another key element to ensure client retention and satisfaction is the use of client-only sections and e-zines (electronic magazines). Stangeland categorizes the essential components of a custom-designed e-zine and illustrates how to make use of this great tool for promoting additional services, generating new client referrals and simply staying in touch with clients.

With so much information readily available on the Internet today, clients (and potential ones) are in a position to be more discerning than ever when it comes to choosing a CPA firm. Stangeland’s strategy demonstrates how CPAs can proactively use that same technology to their advantage—through their own carefully planned Web site.

—by Loanna Overcash

Optimizing Company Cash: A Guide for Financial Professionals
by Michèle Allman-Ward and A. Peter Allman-Ward
AICPA, 2007, 271 pp.

Cash flows, liquidity, the banking system and other touchstones of business finance are laid out in this comprehensive and easy-to-follow guide to cash management, with copious exhibits and examples. Of particular interest to practitioners in this increasingly specialized field are the many points at which the husband-and-wife authors distinguish cash metrics from those of accountants and managers. As the authors note, cash managers and other financial professionals work along mostly parallel paths.

The book provides a grounding in the basics of financial reporting and progresses to international finance and banking, outsourcing of treasury operations and other timely topics. It includes practical guidance on selecting and evaluating a bank or financial services provider.

Corporate treasury operations have come a long way from simple disbursement and collection to become a strategic arm of management, with a finger on the pulse of one of the most telling indicators of business fundamentals—the statement of cash flow. The authors provide advice on such modern technological aids as treasury management systems. The information is scalable to smaller enterprises with such discussions as float in different contexts and cost-benefit analysis of a lockbox.

As the authors note, recent trends in check clearing such as truncation and imaging have been overtaken by electronic funds transfer, automated clearinghouse (ACH) and other electronic transactions. Readers with a particular interest in this area may also want to consult publications of NACHA—The Electronic Payments Association, a nonprofit organization that represents financial institutions and develops rules for ACH and other electronic systems.

—by Paul Bonner