Neil McIntyre, CPA, CA, CIA

Making business sense with Macs

Apple logo In the world of business, with the notable exception of “creative” industries, IT is dominated by Microsoft Windows. Apple’s Mac enjoys niche success in art and media related circles, but hasn’t been able to crack into mainstream business use.

This is not for lack of trying. Apple’s website has a section devoted to how some businesses have switched to Macs and how they are using them to help run their businesses. I was delighted to find a page or two specifically about accounting firms, hoping to read some inspiring case studies.

One such study talked about a small, sole proprietor CPA firm in San Diego that was running exclusively on Macs. The main benefit the CPA cited for making the decision to use Macs was the lower total cost of ownership, from not having to spend money on maintenance.

â€œPeople say Macs cost more money than PCs. But Mac is really far more cost-effective over time, because thereâ€™s so much back-end cost in using PCs. Suddenly youâ€™re bringing in consultants to battle viruses, or recover lost data, or troubleshoot network issues. So many businesses spend a fortune maintaining their PCs.”

That advantage, as well as some others, is highlighted in a recent opinion piece in Computerworld. More, after the jump.Continue reading “Making business sense with Macs”

Update on public company auditing in Canada

There’s some interesting Canadian audit industry data in the March 2007 CA Magazine.

In an earlier post I revealed my ignorance when it comes to public company auditing in Canada. I was incredulous that the small, one-office accounting firm could attract large, public company audits, simply because the perception in industry is that only a Big 4 firm has the necessary expertise.

Apparently that is simply not the case, and my eyes have been opened to the true situation. From the short article:

Another interesting finding, not shown in the chart, is that the number of firms auditing companies listed on Canadian exchanges has dropped to 236 in 2006 from 307 in 2005, a decrease of 23%.

236 different firms have public company clients in Canada? That’s quite a lot! And 307 in the prior year?

What is really driving this spread is the market capitalization of the public companies. There’s a chart (referred to in the quote) that shows that the Big 4 overwhelming audit the public companies with substantial market caps.

So the smaller public companies tend to choose the smaller firms. That makes sense.

Either way, lesson learned on my part.

UFE study materials available

I received an email recently from a US CPA who is moving to Canada and hopes to write the UFE this year. She asked me if I knew where she could find relevant study materials for it.

Densmore immediately came to mind, since I’d taken the course last summer and it served me exceedingly well. On their website, you can download 2 simulation packages containing 7 cases in each package. The packages mirror a full UFE – 1 5-hour comprehensive case, and 6 smaller multi-competency case averaging 80 minutes in length.

The cases are free, but the answers are for sale for $60 each. The price is reasonable, as the benefit you will gain from studying these cases more than outweighs the cost.

Disclaimer: I’m not getting anything from Densmore to recommend their stuff. I’m just a satisfied customer!

I also recommended PASS, which I didn’t personally attend but a few of my friends did and they passed the UFE this year as well. I took the PASS CKE prep course in the fall of 2005, for what it’s worth, and passed that test on the first try.

Unfortunately, it doesn’t appear that they offer cases for self-study, preferring to focus entirely on their courses, which require a more significant financial outlay.

As well, you can download prior year UFEs and evaluation guides as a member of your local Institute from their website.

Good luck to all 2007 writers, and keep sending me ideas for blog posts!

Accounting news roundup

Congress wants financial reporting simplified for easier understandability. I can’t honestly say their desire for more regular updates on what the industry is doing to modernize itself is a bad thing, however. Seems like a good prod for the stiff collars at the helm.
Here in Canada, there are rumors the federal government may tie the income trust tax to the upcoming budget. The effect would be to make the income trust issue a confidence motion which, if defeated, would trigger an election. Recent polls showing the governing Tories padding their lead over the Liberals add fuel to this fire.
In the UK, PwC and E&Y ranked at the top of accounting firms in terms of brand strength according to Business Superbrands Council. Brands were rated according to “quality, reliability and distinctiveness within their sector.” I guess they mean the distinctiveness of the logos at the top of the auditors’ report?
Nortel is going to be restating their results again. I’m really starting to feel sorry for those guys. Nothing epitomizes the current shortage in accountants quite like Nortel’s difficulties.

CA Convocation an evening of celebration

Last night the annual CA Convocation and “Dinner Dance” was held at the Westin Harbour Castle downtown Toronto. Good times were had by all, except that I think made an ass of myself on more than one occasion. That’s what drinking nothing but scotch and wine will do to you I guess!

Lots of fun though – great food, great live band and dancing, free drinks in a posh setting, and yet more recognition of passing the UFE. Check out a few photos on my Flickr and Krupo should have some soon too.