LETTERS

GREAT ARTICLE, BAD HEADLINE
Nicholas Mastracchio Jr.’s article (“Value Proposition,” June 07, page 82) is the best-ever article published to promote our profession. “Why Hire a CPA?” is a much better title than “Value Proposition.”

Elina Chu, CPA
San Francisco

LOVE THE NEW LOOK
I just read the August issue of the Journal of Accountancy online. Just wanted to let you know that I like the new format.

Thomas D. Pietras, CPA
Columbia, S.C.

Editor’s note: The Journal of Accountancy Online also has a new Web address: www.journalofaccountancy.com.

GENERATION GAP
I am responding to the sidebar by Bob Dias (“Keeping Current Can Help Firms Overcome Recruitment and Retention Challenges,” Aug. 07, page 39), and the chart included at the bottom of the sidebar.

As a CPA in my mid-50s and owning my own public firm with only two professional staff members besides myself, I read the chart a little differently than the CCH people do.

The three top items that are most important to young CPAs and the bottom items that are important to the firms seem to indicate a difference in work ethic.

The young CPAs seem to want all the bells and whistles to do the work but do not find the abilities to do the work as important. They want the resources to get the job done and access to the latest technology, but they don’t think the ability to do tax research (use the technology) is very important.

The younger CPAs (CPA candidates during tax season) I have hired believe the tax software should be invincible. They do not question what the software does, even if they have doubts about the tax return.

They certainly do not take the initiative to look up anything in the research software or research books provided.

Jon B. Herberg, CPA
Billings, Mont.

A SECRET TO SHARE
As a follow-up to Ken Weber’s Checklist, “Dirty Little Secrets of 401(k) Plan Fees” (May 07, page 34), I had noticed the expense ratios as disclosed for the fund choices in my company’s 401(k) plan were significantly higher than the expense ratios for the same funds available to the public.

On inquiry, it seems the 401(k) plan was purchasing Class N shares with a higher expense ratio, compared with Class A shares, which the general public would purchase.

When I told the financial adviser the expense ratios were too high, I was told there is nothing that could be done. They were wrong.

I am now in the process of switching my company’s plan to a different financial adviser, who is allowing us to access all Class A shares and have a fee explicitly charged, which, on balance, will net out to a savings of about 40 basis points. I believe we will have better performing funds, in addition.

Please advise the readership to be on the alert for these different share classes with higher expense ratios.

Gary Pokrassa, CPA
Ronkonkoma, N.Y.