As long as your browser is Internet Explorer 5.5 or higher, you can take the latest edition of Microsoft Office for a test drive without having to install a thing. Experience the bliss of the ribbon, the new UI metaphor that has already won my heart over. I loathe still having to do my work in Office 2003, which we still use at the firm. I can’t wait till we upgrade, but you don’t have to — test it now!
Bring in specialists to build niche practices
An interesting article in WebCPA talks about how some small firms are building niche practices by bringing in “Champions” from the outside: Someone with an established reputation and contacts who can hit the ground running and jump-start the program in a new organization.
Going outside the firm has many advantages:
- Target growth areas to focus marketing efforts and segment the market. Want more clients in a certain industry, or are certain industries growing in your area? Get a specialist and develop a niche practice.
- Allow the specialist to devote 100% of their time to the niche. Let the champion do what he or she was brought in to, which is to focus on his or her specialization and become the leader in the field.
- Allows existing partners to continue to service their client base. Maintain existing client relationships and still be able to cross-sell specialist services.
- Avoid the lengthy process of developing internally. In some cases, you have people already in the firm that have the desire and competence to take on a specialization, but it still takes time to build experience and a client network.
- It becomes easier to recruit other field leaders and develop further niches. Driven, bright people want to work with others who are similarly ambitious. Just look at Google.
- Existing staff are energized by the new possibilities for their own development. Once you’ve brought someone in to kick off the program, start building from within. Allow the young people to learn from the master(s).
This type of thing has the potential to make recruiting in general easier:
“Junior members of our firm developed a sense of pride when invited to join the niche as a member of the group. It allowed them to go beyond developing only professional standards in their early years, and learn about industries. For seasoned staff, it was a vehicle for them to become famous in the firm, and provide them with something more than the traditional path to manager or partner.”
Challenges reported by the firms employing this strategy primarily deal with that of culture and personality. The outsider needs to be able to fit inside the culture of the firm, even as they push its limits.
I can attest to the fact that this strategy has the intended effect. There are groups within my firm that have champions and they have experienced strong growth and opened up opportunities for people like me. Having the option to move into several specialist groups if I decide that audit isn’t for me in the long run is a good thing.
(Via Accountants Round Up.)
Variety and experience at mid-size firms
I’m going to have a fast-paced week again. This week I’m working on two clients from jobs that have wrapped up field work and two clients whose field work has yet to begin.
On the two post field work jobs, I’ll be auditing the consolidation of several large private companies and clearing review notes and documenting big picture issues on the audit I just wrapped up last week.
On the two pre field work jobs, I’ll be supervising a group of junior staff working on some small company compilations and reviews and beginning the planning on an audit that goes in February, and interim work that starts the week after this one.
It’s tiring but it’s exciting to have this much variety and experience already in my career. Makes me glad I chose a mid-size firm.
Canada gets a variety of tax cuts
The Canadian government released a mini-budget this past week that featured serious tax cuts. The GST goes down another point to 5% and the lowest bracket of personal tax is lowered back down to 15%. Corporate taxes continued their downward trajectory.
The CICA focused first on the reduction to corporate taxes:
“The government’s commitment to reduce the general corporate tax to a rate of 15% by 2012 is a positive step toward making Canadian companies more competitive,†said Kevin Dancey, FCA, President and CEO of the CICA.
Their media release about the announcement actually doesn’t even mention the GST or personal tax. That’s a little strange. I hope they’re just working on something really special and it’s taking longer than expected, because they would be remiss to miss out on commenting on these topics as well.
Clearly we as a profession should have something official to say about personal and consumption taxes. I know I do, as an individual member.
The Basic Personal tax credit amount was raised to $9,600 in 2007 and is scheduled to rise further to $10,100 in 2009. This is a positive step and smart policy, as a strong argument can be made to increase the limit to the poverty line. Any increase here is progressive and ought to be well received.
The cut to the GST from 6 to 5% as of January 1, 2008 is essentially regressive and rewards increased consumption. Shifting the savings here to the Basic Personal credit or lowering the general rate on income tax would have been better and greener.
Canada is riding high on a wave of prosperity, the loonie has reached levels not seen since before the 20th century, and unemployment is reaching all-time lows. It is only fitting that the Federal government return some of its surplus to Canadians.
Grant Thornton insists client remove Chairman, is removed as auditor
Here’s an interesting story coming out of Dallas:
Embattled multi-level marketing firm Mannatech has fired its independent auditor, Grant Thornton, after the auditor gave the company an ultimatum: Remove Chairman and founder Sam Caster from the company or find yourself another auditor.
So they found themselves another auditor, BDO Seidman, and let Grant Thornton go. The strange thing is this part of their press release:
There were no disagreements between Mannatech and Grant Thornton on any accounting principles or practices, financial statement disclosure, or auditing scope or procedure.
It’s hard to imagine why GT would insist the company dump their Chairman, given the above quote. But it makes no mention of internal control or corporate governance at the company, which may have caused some concern:
Caster stepped down as CEO in August. His decision came a month after the Texas Attorney General filed a lawsuit charging Mannatech, Caster and other parties with illegally marketing and selling its dietary supplements as a way to cure and treat diseases, illnesses or serious conditions like cancer.
The company has made a concerted effort to fix the problems that led to the lawsuit, including updating their sales and marketing materials and guidance for employees. With adequate monitoring, solidifying procedures and policies and setting expectations should ensure Mannatech recovers in the future.