AS QUOTED
“Drive thy business
or it will drive thee.”

—Benjamin Franklin

SURVEY SAVVY
Tell Us a Little About Yourself
typo on your rsum may give a bad impression, but the interview process is an even bigger hurdle when you’re applying for a financial position. In a recent poll of 1,400 CFOs by Robert Half Finance & Accounting, 32% cited the job interview as the point at which most applicants make a misstep, compared with 21% who pointed to errors on rsums and 9% who were discouraged by the quality of cover letters. So before going out to meet a potential boss, brush up on your interviewing skills. Do your homework by researching the firm, envisioning the questions you’ll be asked and writing out the answers, and even role-playing the entire interview with a friend or mentor. Then read over that rsum and cover letter one last time.

SIGN OF THE TIMES It’s a Wrap f business at his Tampa tax practice ever slows down, CPA Rick Corbett always has another career option available. He can be a professional “wrapper.” Corbett was one of eight finalists invited by Scotch brand tape to vie for the title of “Most Gifted Wrapper” in a national competition that pitted four amateurs against four department-store professionals. The 50-year-old Corbett—whose white beard makes him look a little like a young Santa Claus—says his CPA penchant for perfection has made him the family gift wrapper since he was a kid. “Like most accountants,” he says, “I like to have everything just so.” When it comes to gift wrapping, though, he forgoes his usual focus on standards and custom-designs each package. There’s just one rule: Ribbon only; never pre-packaged bows. Corbett’s wife and her five best friends entered his name in the contest, using verse reminiscent of “’Twas The Night Before Christmas.” (“He put down his pencils and IRS codes/And turned his attention to ribbons and bows…”) The Scotch folks judged the contestants on how well they wrapped a television, a saxophone and a Vespa scooter; the winner—unfortunately not Corbett—got the three prizes and bragging rights. —Cheryl Rosen

NUMEROLOGY

Source: U.S. Small Business Administration, www.sba.gov.

ON THE RECORD
On Accounting Standards
believe that reducing the complexity of accounting standards is an important issue facing the accounting profession. The SEC staff’s study on off-balance-sheet arrangements that was issued this past June highlighted this observation along with several initiatives aimed at improving the transparency of financial reporting.”

—Alison Spivey, SEC, remarks at the AICPA Business and Industry Conference, New York City, October 2005.

SIGN OF THE TIMES
Taxing Tune
This excerpt from “The Motherland Is in My Heart,” a motivational song for Chinese tax collectors, is supposed to be sung proudly and with deep feeling. Now if it only was easy to dance to…

The national emblem is on my cap
And the motherland is in my heart.
We are glorious tax workers.

A sacred responsibility is on our shoulders:
To struggle for the administration of taxes according to law,
To stand at our post in order to see that policies are strictly followed.
We have a thousand stratagems
For stopping tax evasion;
We have a thousand stratagems
For stopping tax evasion.

Oh blah dee, oh blah dah,
tax goes on…

Source: Roth & Co. PC and Zhongguo Shuiwu (Chinese Taxation), No. 3, 1990 (translated by Donald C. Clarke).

NUMEROLOGY A Mostly Optimistic Outlook majority of U.S. consumers think things are looking up for 2006. The Experian-Gallup Personal Credit Index says fully 68% are optimistic about their financial situation this year, including 30% who are “very” optimistic. Americans have a variety of reasons for thinking 2006 will be a good year: 57% of those who are employed expect to earn more money in 2006 than they did in 2005. Only 6% expect a decline in pay. 30% of workers anticipate a promotion in the coming year. 50% of consumers plan to make home improvements in 2006. 38% anticipate paying off their debt. 36% hope to earn a higher credit score. 21% plan to buy a new car. 19% will go back to school. But all of the news isn’t good. Some 14% of consumers who have a credit card pay only the minimum amount each month, up from 7% last year. And 26% say they are uncomfortable with their current debt level, which averages $4,072.

SURVEY SAVVY
Plan Tomorrow Today
f your clients’ personal savings accounts aren’t increasing fast enough to provide a lucrative retirement, you might suggest they switch to equities. Nearly 57 million U.S. households owned stock directly or through mutual funds—three times the number that did two decades ago, according to a survey by the Investment Industry Association and the Securities Industry Association. Even though this growth was primarily through employer-provided retirement plans, three-quarters of those surveyed owned individual stocks outside of these plans and used professional financial advisers.

CAREER UPDATE
CPAs Are a Hot Commodity
on’t you wish you could look into a crystal ball to see what’s ahead for the profession? So do we. But since that seems unlikely, we turned to Kent Burns, equity partner of MRINetwork’s Indianapolis office, to get his take on CPA career prospects in the near future.

It looks like business valuation, litigation services and forensic accounting will be hot sectors this year, Burns says. On the corporate side, auditing and compliance experts will remain in short supply, as will senior financial analysts, financial analysts and positions related to Sarbanes-Oxley. Corporate taxation as a career option is a bit more stagnant as there is little turnover. Contract work is skyrocketing, with many choosing to work this way full-time.

CPAs just starting out can begin their careers in public accounting—it’s still a great path to take, Burns says. The Big Four firms also still carry great prestige, but graduates can get challenges, variety, training and opportunity at smaller firms, too. In some cases, the exposure at a midsize firm can be greater and come more quickly.

If you want to go corporate, seek a company with a financial leadership development program that will rotate you through several roles in the first couple of years. These programs give you a real feel for the organization and let you build some key relationships and pick your assignments. They give lots of experience and provide a fast track.

Also, find and adopt a mentor early. It will save years in your career development, Burns says. For CPAs wishing to become CFOs, Burns suggests “getting your tickets punched”—auditing, accounting, finance and strategy.

If you move from industry to public practice, know that subject-matter experts are of great value and play that to your advantage. Burns says consulting pays more than traditional accounting and auditing, but usually requires more travel. And if you are personable and charismatic, firms will be interested in your ability to help build business.
For those wanting to become managing partners, Burns’ advice is to prove you can sell—and hone your business development skills. Years ago, the road to the top was technical proficiency, but not any more, he says; now you must be able to bring in business, generate revenue and lead.

You’ll have to be a visionary who’s valued for your business acumen. Bring clients solutions beyond the standard fare. Internally, continually refine the business model with new approaches and technology and be at the leading edge of best practices.

All of these suggestions require a very proactive approach. Read as much as you can, talk to clients and prospective clients, and network like crazy. Everyone you encounter can add to your knowledge base.

—Laura Baron

NUMEROLOGY Looking Back What was the United States like in 1905, when the Journal of Accountancy was first published? The average life expectancy was 47 years. Only 14% of homes had a bathtub. A three-minute call from Denver to New York City cost $11. Only 8% of homes had a telephone. There were 8,000 cars in the United States, and 144 miles of paved roads. California was the 21st most populous state; Alabama, Mississippi, Iowa and Tennessee were each more heavily populated. The average wage was 22 cents an hour; the average worker earned between $200 and $400 a year. An accountant could expect to earn $2,000 a year, a dentist $2,500. Sugar cost 4 cents a pound, eggs 14 cents a dozen, coffee 15 cents a pound. More than 95% of all births took place at home and 90% of all physicians had no college education. The American flag had 45 stars. Arizona, Oklahoma, New Mexico, Hawaii and Alaska hadn’t been admitted to the Union yet. The population of Las Vegas was 30. Only 6% of adults had graduated high school. Some 18% of households had at least one full-time servant or domestic worker. There were 230 reported murders. Source: www.dailyreckoning.com/Featured/progress.html.

NUMEROLOGY

Source: The New Agenda for Minority Business Development,
Boston Consulting Group, www.beg.com, and the Ewing Marion
Kauffman Foundation, www.kauffman.org, 2005.

GOLDEN BUSINESS IDEAS
Solve Memory Problems
f you’re having trouble remembering things, what you need are recall clues to jump-start your memory. For example, say you have to remember these six names: Stanley, Robin, Georgette, Ben, Thomas and Luther. Instead of trying to commit the names to memory, invent a sentence—even a nonsensical one—using the first letters of each name for the first letter of each word of the sentence: Stanley’s robe is green and blue and too long.

Manners Mistakes Managers Make
ittle etiquette errors can diminish your image and, eventually, your power. So watch your Ps and Qs, and be careful to
 

Recognize subordinates when passing them in a hall and receptionists when entering offices.

Silence your cell phone and beeper during meetings.

Take invitations from subordinates seriously. Never ignore them or fail to show up after accepting.

Return phone calls or e-mails within a reasonable time.

Make an adequate apology when you hurt someone. If the gaffe was serious, a handwritten note, and even a small gift, is not too much.

Listen to subordinates and make time to talk to them.

—Stanley Zarowin

SURVEY SAVVY

Source:TheLadders.com survey of 1,366 executives earning
$100,000 or more, www.theladders.com, 2005.