Year: 2021

Lawyers Complain the Pandemic Made the Bar Exam Too Hard, Should CPAs Complain Too?

Christina Lane

Stumbled across an interesting article yesterday that I thought worth sharing with you if for no other reason than it’s been a while since we’ve instigated a pissing contest with lawyers over whose professional licensing exam is harder. The article suggests the law profession should just get rid of the bar exam completely due to poor performance in recent years because the stress and anxiety of the pandemic made it too hard to study, something to which I’m sure even the most overachieving among you can relate.

While worldwide mental health issues brought on by a global pandemic might be new, proposals to ditch the bar exam are not. A March 2021 Wall Street Journal op-ed directly attacked the same barrier to entry that some have complained keeps diverse candidates from the accounting profession.

Congress may soon strengthen the antitrust enforcement powers of the Biden administration’s Justice Department. The department should use those powers to eliminate the American Bar Association’s monopoly in determining what constitutes an acceptable legal education and state licensing requirements, which restrict the supply of lawyers.

Here’s Above the Law‘s Joe Patrice with a hot take on that issue, should you be interested.

Our side of the professional services pool has no shortage of scary headlines suggesting your credential is under attack by misguided small-L libertarians who think professional licensing is dumb, so the discussion happening on the law side isn’t all that different from the one happening in accounting. The AICPA is watching this legislative threat closely, and rest assured they will do everything in their power to ensure those pesky libertarians don’t ruin their monopoly on CPA licensure destroy the value of your hard-earned CPA credential.

Anyway. Let’s get back to the subject at hand. This is from “Bar scores, always low, drop even more due to pandemic. Does test still make sense?” via WVNews:

After spending tens or even hundreds of thousands of dollars for a law degree, the reality is that a surprising number of prospective attorneys won’t make the grade when it counts most: Passing the bar exam.

According to statistics provided by the West Virginia Supreme Court, the total pass rate for the July bar exam in West Virginia ranged from a low of 57.5% in the middle of the pandemic this July, to a high of 76.8% in July 2020. During the February exam — which often is taken by out-of-state residents or those who failed the first time around — the total pass rate ranged from 45.9% in February 2019 to 72.3% in February 2011 [did they mean 2021? We assume so]. The WVU pass rate for July’s exam ranged from 58.8% in 2021 to 74.2% in 2013, while the February WVU pass rate ranged from 25% in 2020 to 60% in 2018.

The aggregate national bar pass rates are in the same range: 60,784 people took a U.S. bar exam in 2020, and the overall pass rate was 61%; the February rate was 41% for 19,409 participants, while July of 2020’s was 71% for 41,375 participants.

This has caused calls from some to eliminate the bar exam, notes Steptoe & Johnson PLLC Office Managing Member-Bridgeport Shawn A. Morgan. Bar exam detractors have pointed to the pandemic with 18 months of remote coursework and especially low bar passage rates as a result.

“The opponents of the exam favor allowing new lawyers a period of apprenticeship instead of a test for licensure. California, for example, allows this option,” Morgan said.

They also got a hilarious quote from a lawyer married to another lawyer who roasted the morons who can’t pass a simple test:

“My wife and I worked our butts off and passed — we earned it. The people I know who failed the test, I believe they deserved to fail it. They weren’t prepared, they weren’t bright enough, they couldn’t grasp the concepts. There are a multitude of reasons why these people fail, but its usually because they didn’t put in the work necessary to pass. And as [longtime Charleston attorney Tony O’Dell] said, being a lawyer is hard work and you have to learn that from the beginning. Put in the work or you won’t make it.”

Dyer added that “we only want individuals in the field who can pass that exam. Just like a doctor with boards or an accountant with the CPA exam, it’s important to have a standardized gatekeeper test to make sure only the brightest are getting in because they will be handling such serious and important matters. I don’t think the low passage rate affects the system. The test protects our legal system,” Dyer said.

Is he… suggesting there is no such thing as a dumb lawyer? Not gonna touch that one.

Anyway, this got me wondering how future CPAs have performed during these unprecedented times (are we still using that phrase?). The last time we checked in on CPA exam scores, 2021 CPA exam pass rates were up from the year prior, with the year prior being up from the year before that. So already we know CPAs are doing better than lawyers (suck it, Dyer).

Take a look at 2020 CPA exam pass rates:

2020 Pass Rates

AUD”,”47.97%”,”65.29%”,”56.89%”,”47.50%”,”52.84%”],[“BEC”,”61.76%”,”76.92%”,”69.89%”,”60.77%”,”65.56%”],[“FAR”,”46.37%”,”62.86%”,”55.67%”,”43.53%”,”49.98%”],[“REG”,”55.42%”,”75.97%”,”66.12%”,”58.00%”,”62.29%”]]” data-edit-mode=”false”>SECTIONQ1Q2Q3Q4CUMULATIVEAUD47.97%65.29%56.89%47.50%52.84%BEC61.76%76.92%69.89%60.77%65.56%FAR46.37%62.86%55.67%43.53%49.98%REG55.42%75.97%66.12%58.00%62.29%

And 2021 CPA exam pass rates as they stand today:

2021 CPA Exam Pass Rates

AUD”,”47.97%”,”65.29%”,”56.89%”,”47.50%”,”52.84%”],[“BEC”,”61.76%”,”76.92%”,”69.89%”,”60.77%”,”65.56%”],[“FAR”,”46.37%”,”62.86%”,”55.67%”,”43.53%”,”49.98%”],[“REG”,”55.42%”,”75.97%”,”66.12%”,”58.00%”,”62.29%”]]” data-edit-mode=”false”>SECTIONQ1Q2Q3Q4CUMULATIVEAUD48.56%50.49%49.70%BEC62.16%63.31%62.84%FAR46.64%42.63%44.70%REG59.29%58.81%59.03%

Pass rates via the AICPA.

Q2 exam performance brought the cumulative pass rate down a bit for each section but we’ll just chalk that up to April 15 or something. The main thing is CPA exam pass rates have stayed pretty consistent throughout the most stressful two years that most of us will ever endure, which is saying quite a bit about future number-crunchers and their ability to get the job done even under tremendous pressure. A tenacity upon which the entire foundation of the Big 4 meat grinder is precariously built, no doubt.

So what’s our takeaway? You guys are killing it. And since we’re all going through the same stress thanks to the same annoying virus the lawyers might have to come up with a better culprit if they’re trying to ditch their licensing exam because of it. Might I suggest global warming? That one’s pretty annoying.

Further reading:

Bar exam scores keep rolling in, nearly all lower than last year [Reuters]
Bar Exam Scores Dip… Time For Everyone To Freak Out! [Above the Law]
Bar scores, always low, drop even more due to pandemic. Does test still make sense? [WVNews]

Photo by Daniel Reche from Pexels

The post Lawyers Complain the Pandemic Made the Bar Exam Too Hard, Should CPAs Complain Too? appeared first on Going Concern.

Did you miss our previous article…
https://www.digital-accountants.com/?p=203

NEW Remote Audit and Tax Career Opportunities

Christina Lane

If you are interested in a fully remote professional opportunity, apply today using the links below! Talent search for all positions is managed by Accountingfly on behalf of the client firms.

Remote Audit Jobs

Remote Audit Manager CPA – CPA firm located in Northern Virginia is hiring an Audit Manager responsible for supervising, directing, and reviewing results through the delegation of tasks throughout the planning, fieldwork, and “wrap-up” stages of an audit client engagement.

Remote Audit Senior – Join our client’s team in advising public and private companies on ways to enhance profitability, save taxes, improve accountability, and reduce risk.

Remote Audit Senior, Enterprise Risk Management- Top CPA firm is adding to its Internal Audit and Enterprise Risk Management team. You will help clients maximize their opportunities.

Remote Audit Supervisor, Texas Residence- Boutique CPA firm in Georgetown, TX is hiring an Audit Supervisor with experience working with clients in the construction service line.

Remote Staff Accountant Audit and Attest- Our client, a top 100 CPA Firm in the US, is seeking a Remote Staff Accountant, Audit and Attest to join their growing firm.

Remote Tax Jobs

Remote Indirect Tax Specialist – As a Remote Indirect Tax Specialist at this fully remote CPA firm,  you will provide state and local indirect tax consulting and compliance services to our client base in the SaaS, e-commerce, and professional services verticals.

Remote International Tax Manager at CPA Firm – You will be facilitating the implementation of international tax projects, including identifying, understanding, communicating, and managing projects from inception to completion.

Remote Sales and Use Tax Accountant – Remote, flexible, contract role. This is a great, regular revenue stream for sole practitioners—no sales required, just sales and use tax knowledge.

Remote SALT Accountant – Our client, a top 100 CPA firm, has opportunities at the Senior/Supervisor and Manager level for SALT experts.

Remote Senior Tax Accountant – An established family-owned and operated CPA firm is seeking an EXPERIENCED Tax Senior to join our team. We are looking for a well-rounded tax- and accounting-knowledgeable CPA who wants to contribute their talent and expertise to the service of our clients.

Remote Senior Tax Accountant – Our client, a best-in-class accounting and business advisory firm, is seeking a Remote Senior Tax Accountant to join their growth-driven company.

Remote Senior Tax Manager – Established CPA firm is looking for a Remote Senior Tax Manager who is a self-starter, enjoys client work, leads tax engagements, and mentors staff.

Remote Senior Tax Manager, Not for Profit – Our top 100 CPA firm client is in need of an experienced Senior Tax Manager who specializes in not-for-profit tax returns to assist with the management and business development of the firm’s exempt organizations group.

Remote Tax Accountant, CPA Firm – Small CPA firm with expanding practice is hiring an experienced  Remote Tax Accountant. This firm offers a balanced work/life environment and plenty of room to learn and grow.

Remote Tax Accountant, CPA – You will be called upon to deliver professional services to clients, including consulting, tax planning, compliance, and research. You will be part of our client’s team and assist in developing high-level relationships with clients, prospects, and referral sources, as you perform detailed tasks on engagements while delegating to and supervising others.

Remote Tax Accountant, Ohio Tax Experience – Our successful CPA firm client in Ohio seeks an experienced Remote Tax Accountant to join their team for a hands-on, client-facing role. A great opportunity to work with small business clients and professional peers!

Remote Tax Freelancers – Our CPA firm clients are hiring contractors for tax preparation, review, and project work. Apply now and Accountingfly will connect you.

Remote Tax Incentive CPA Contract – Our client seeks a CPA with extensive experience with business tax incentives to join the team. The goal is to help businesses claim their tax incentives and credits often missed by their tax preparer in prior years.

Remote Tax Manager – Premium service accounting and advisory firm is in need of a Remote Tax Manager to provide individuals, small businesses, not-for-profits, and various other entities with a wide array of services.

Remote Tax Manager – Tax Manager needed at top 50 CPA firm. Provide tax planning, consulting, and compliance services to clients. Experience with manufacturing, international, or technology preferred.

Remote Tax Manager – Tax Manager needed at CPA firm. You will be responsible for advising clients on the tax implications of their business objectives, evaluating and selecting alternative actions to lessen tax burden, and applying tax knowledge to other tax issues.

Remote Tax Manager ASC 740 Experience – The ideal candidate for this position would be a Tax Senior or Manager with four to 10 years combined public accounting and/or corporate tax department experience, including federal and state tax compliance, ASC 740 (FAS 109) tax reporting, SOX internal controls, working with companies that have foreign subsidiaries, and strong managerial and communication skills.

Remote Tax Manager, CPA – Remote Tax Manager CPA needed at progressive, tech-forward cloud accounting firm. If you are an experienced CPA who is comfortable running client planning meetings and can communicate clearly and effectively with clients and team members, this role is ideal for you.

Remote Tax Manager, Fluent in German – Our top 50 CPA firm client is looking for a Remote Tax Manager who is fluent in German, to work with their international tax group.

Remote Tax Professionals, All Levels – If you have recent public accounting experience and want to continue on that career path, we can help. We work with many CPA firm clients who are looking to grow their remote teams with tax talent at the Staff, Senior, and Manager levels.

Remote Tax Senior – If you enjoy a busy, growing firm with a strong culture of taking care of its people, then this is the firm for you. This is an immediate hire, full-time, permanent role with a generous comp and benefits plan. You’ll feel part of the team, even though you’re working from home!

Remote Tax Senior – Remote Tax Senior needed at a busy and successful CPA firm in Birmingham, AL. Career mobility with a congenial group of accounting professionals in a great firm.

Remote Tax Senior – Leading CPA and advisory firm looking to hire a Remote Tax Senior. This firm offers a mix of interesting clients, a flexible culture, and the opportunity to work with professionals across all areas of the organization.

Remote Tax Staff Accountant – Remote Staff Accountant opportunity with top 100 CPA firm. You’ll perform the detailed work of preparing tax returns and financial statements under the direction of our talented Senior Accountants, Managers, Senior Manag­ers, Principals, and Directors.

Remote Tax Supervisor – Team culture that stresses independence, flexibility, opportunity, and empowerment. Be empowered to work directly with clients and partners to provide a broad spectrum of tax and related consulting services.

Remote Tax Talent, CPA Firm – Our client, a top 100 CPA firm, is seeking Remote Tax Talent to join their growing Tax Department. The Remote Tax Professional will provide comprehensive tax services and specialized expertise to businesses, individuals, trusts and estates, not-for-profit and public entities.

Tax Manager, Remote in Texas – Boutique CPA firm hiring Remote Tax Manager. Texas residence required and willingness to meet in-office monthly, travel expenses paid. Immediate hire opportunity!

Tax Senior, Remote in Texas – CPA firm hiring Remote Tax Senior. Texas residence required and willingness to meet in-office monthly, all travel paid. Immediate hire opportunity!

Tax Supervisor, Remote in Texas – Tax Supervisor needed at a boutique CPA firm in Georgetown, TX. Great culture, collaborative team environment. The position is remote, with monthly visits to the office—paid travel expenses.

The post NEW Remote Audit and Tax Career Opportunities appeared first on Going Concern.

We Now Know the Buyer of PwC’s Global Mobility Services Business

Christina Lane

After months of rumors and speculation online about whether or not PwC was selling its global mobility services business and, if so, to whom, we now have answers to both questions: Yes and private equity firm Clayton, Dubilier & Rice.

Here’s the press release that just hit our inbox:

Clayton, Dubilier & Rice and PwC today announced an agreement under which CD&R funds will acquire PwC’s Global Mobility Tax and Immigration Services business. The business is the global leader in employee tax, immigration, business travel, mobility managed services, and payroll solutions to multinational organizations and their employees. Terms of the transaction were not disclosed.

The Global Mobility Tax and Immigration Services business serves more than 3,000 multinational clients worldwide. The business helps organizations manage global talent mobility, while providing personalized, high-quality tax and immigration services to cross-border employees, as they navigate compliance issues associated with global employment. The transaction will create a free-standing, global platform with more than 5,700 professionals hyper-focused on a seamless cross-border experience for clients, while accelerating investment in technology and new services.

Throughout its more than 50-year history, the business has been the leader in global mobility services, supporting its clients’ talent mobility programs by helping solve cross-border employment challenges. Recently, the business enhanced its service offerings to reflect the changing needs of clients and their cross-border employees throughout the pandemic.

“We are excited for the opportunity to become a free-standing organization and partner with CD&R to build on our market leadership and drive more value for clients,” said Peter Clarke, Global Managing Partner for Global Employee Mobility at PwC, who will be CEO of the new company. “The pandemic proved that global employment issues remain a key challenge for companies, especially as compliance requirements become more complex. Our partnership with CD&R will allow us to accelerate our technology investments to offer what our clients are asking for: an integrated digital experience across the entirety of the talent mobility ecosystem. These technology investments along with our new global operating model will support an even more differentiated service experience for our clients with the same laser focus on the quality and confidentiality of the services we provide to our cross-border employee clients, while providing expanded and rewarding career opportunities for our team.”

“CD&R has a longstanding track record of executing global carve-out transactions helping companies transition from corporate ownership to independent models,” said Stephen Shapiro, a CD&R partner.  “We believe, as a free-standing platform, PwC’s Global Mobility Tax and Immigration Services business will be positioned to increase its value proposition to its world-class client base.”

“The Global Mobility Tax and Immigration Services business has significant global capabilities to support emerging trends and complexities in talent mobility. The business is well positioned to capitalize on the future growth of global employee mobility, as companies and economies rebound from the pandemic. The return of business travel, emerging mobile work patterns, and the heightened need for compliance in a complex business and regulatory environment will drive significant need for a globally integrated provider with a sophisticated digital platform,” said Russ Fradin, CD&R Partner and former CEO and Chairman at Aon Hewitt, who will become board chairman of the new independent company upon close. “We are excited to partner with a very talented team to unlock their potential as a free-standing enterprise.”

“The best interests of our clients, people and partners have been at the forefront of this transaction and I’m confident that, with CD&R’s backing, the new business will be well equipped to grow and meet the developing needs of its clients of all sizes and in all segments around the world,” said Bob Moritz, Global Chairman of PwC. “This sale will allow PwC to increase its investment in and prioritize building capabilities relevant to our global strategy – The New Equation. I’d like to thank the partners and people involved for their great work and wish them well for the future.”

The business will be rebranded following the completion of the transaction, which is expected to close in the first half of 2022, subject to customary closing conditions including completion of certain local works council consultations. Deutsche Bank Securities Inc., JP Morgan, UBS Investment Bank, BMO Capital Markets Corp., BNP Paribas Securities Corp., Mizuho Financial Group Inc., RBC Capital Markets, LLC, and Societe Generale have committed financing to the transaction and are acting as financial advisors to CD&R; Debevoise & Plimpton LLP is providing legal counsel to CD&R. Morgan Stanley & Co. LLC is acting as financial advisor and Davis Polk & Wardwell LLP and Linklaters LLP are providing legal counsel to PwC.

The Financial Times reported earlier today that the deal is worth about $2.2 billion, and it’s the largest sale by PwC since it dealt its consulting division to IBM for $3.5 billion in 2002.

PwC to sell mobility unit to private equity group CD&R for $2.2bn [Financial Times

The post We Now Know the Buyer of PwC’s Global Mobility Services Business appeared first on Going Concern.

Did you miss our previous article…
https://www.digital-accountants.com/?p=179

Deloitte Canada Fined $350,000 By the PCAOB For Fudging Audit Workpapers

Christina Lane

Someone lit a fire under the asses of those who work in the PCAOB enforcement division because they issued seven disciplinary orders to audit firms and accountants from Sept. 22 to Sept. 30. One of those firms was Deloitte Canada.

Compliance Week reported:

The Public Company Accounting Oversight Board (PCAOB) on Wednesday [Sept. 29] imposed a $350,000 civil penalty on Deloitte Canada for reasonable assurance quality control failures.

The PCAOB further required the Canadian branch of the Big Four firm to establish or revise its quality control policies and procedures and provide additional training to employees involved in any audit.

According to the PCAOB’s order, from November 2016 through early March 2018, Deloitte Canada failed to “establish, implement, and communicate appropriate quality control policies and procedures to provide … reasonable assurance that the work performed by engagement personnel complied with applicable professional standards, regulatory requirements, and the firm’s standards of quality.”

In particular, according to the enforcement order, this:

Deloitte Canada’s system of quality control failed to provide reasonable assurance that Firm personnel appropriately dated their preparation and review of audit work papers. As a result, during that period, the Firm failed to comply with PCAOB audit documentation standards in connection with certain audits and quarterly reviews.

No matter how many times they’re told not to by the PCAOB, auditors just can’t resist the temptation to alter workpapers. It’s like they have an angel on one shoulder telling them not to do it and they have a devil on the other shoulder telling them to do it. And many times they side with the devil. And a lot of times they get caught.

PCAOB rules require auditors to prepare audit documentation that accurately reflects when audit work was completed and reviewed. Makes sense. Up until November 2016, Deloitte Canada’s electronic workpaper system allowed Deloitters to document their performance and review of work by manually selecting preparer and reviewer sign-off dates for each workpaper, according to the PCAOB. But in November 2016, Deloitte updated its system:

[The updated system] removed Firm personnel’s ability to manually select sign-off dates. Under the new system, when an auditor entered a sign-off, the current date was automatically generated. At the time the Firm adopted its new system, personnel from the Firm’s National Office were aware of a risk that individuals could override the new system by changing their computer date settings to backdate work paper sign-offs. Despite that awareness, the Firm did not take sufficient steps—through written policies, guidance, training, or otherwise—to address that risk.

Thus, Deloitte auditors faced the temptation of overriding the system. Did they resist that temptation? Of course not!

During the 16 month-period following the adoption of the new work paper system, Firm personnel overrode the system and backdated their work paper sign-offs in at least six issuer audits and two quarterly reviews subject to PCAOB standards. This conduct occurred while teams were assembling a complete and final set of work papers for retention, or earlier, in these engagements. Additionally, some auditors on these engagements deleted and replaced sign-offs in order to ensure that reviewer sign-offs were dated after preparer sign-offs. Collectively, this conduct obscured the dates on which work had actually been completed and reviewed.

Then in February 2018, a Deloitte auditor sided with the angel on his or her shoulder and put a stop to all the overriding and backdating:

[A] Deloitte Canada auditor raised a concern with senior Firm personnel about auditors altering the dates on their computers to backdate work paper sign-offs. In response, the Firm identified and implemented in early March 2018 a method to remove personnel’s ability to change the date settings on their computers, which prevented further backdating of work paper sign-offs. The Firm also promptly instructed personnel to “[a]lways use the actual date on when the physical sign-off occurs.”

Deloitte Canada is no stranger to $350,000 fines from the PCAOB. The firm got one in October 2018 for failing to maintain independence during its 2012, 2013, and 2014 audits of Canadian gold-mining company Banro Corp.

PCAOB fines Deloitte Canada $350K for quality control failures [Compliance Week]

Related article:

PCAOB Fines Deloitte Canada $350,000 for Breaking Independence Rules Thrice on Audits of Banro

The post Deloitte Canada Fined $350,000 By the PCAOB For Fudging Audit Workpapers appeared first on Going Concern.

Did you miss our previous article…
https://www.digital-accountants.com/?p=168

What in the World is the Withholding Tax?

Christina Lane


What the heck is a withholding tax?

The only thing that is as certain as paying taxes is how complex they are. There’s no way around it: taxes are confusing. That’s the way they’ve been for centuries (when collectors took wheat or rice instead of coins or paper money)! So, you might be wondering, what the heck is a withholding tax?  How can they impact my interactions with the IRS? Well, sit back and read up because we have some simplified answers ready and waiting for you! 

First Off, What is It? 

You might have noticed this term when you’ve reviewed your paycheck. It’s a normal component of how income taxes are calculated: the sliced-off portion of the money that your employer doesn’t actually give you – they send it to the Internal Revenue Service, so you are not obligated to do so. The major reason why they are so important is that you need to be sure that the withholding is correct and isn’t unfair to you. A surplus of money benefits you because you’ll get a bigger tax refund. On the other hand, a shortage means you’ll owe the IRS money instead.

Who is Responsible for Paying Them? 

As you might have guessed, your boss is supposed to pay the withholding tax for you. The process becomes a bit fuzzier if you work as a freelancer or independent contractor, for instance. It’s possible to be exempt from it, too. The catch is that you can’t owe any federal income tax for the previous tax year and that you don’t owe anything for this coming tax year, either. 

The Basics of This Taxation Concept 

It’s easy to break down the withholding tax into smaller parts. The first piece of the puzzle is the W-4 form you submit to your employer once you are on the job. This document includes information about your income, your filing status, and if you have elected to allow your employer to withhold additional money.  Federal, state, local, and FICA taxes “payroll taxes” are the other fundamental elements you should recognize. That’s because they pay towards Social Security and Medicare funding. 

Crunching the Relevant Numbers 

The IRS provides a Tax Withholding Estimator. This tool enables you to review your withholding status. Before you can get started, you’ll need pay stubs, additional income information, and the most recent income tax returns. If you’re married, it’s a good idea to gather the relevant documentation from your spouse. 

Trust the Professionals at the Harding Group

Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for consultations and strive for open communication with our clients. 

Are you interested in business advising, tax preparation, bookkeeping and accounting, payroll services, training + support for QuickBooks, or retirement planning?  We have the necessary expertise and years of proven results to help. 

We gladly serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of tax time, contact us online or give us a call at (410) 573-9991 for a free consultation. For more tax tips, follow us on FacebookTwitterYouTube, and LinkedIn

 

The post What in the World is the Withholding Tax? appeared first on The Harding Group.

Did you miss our previous article…
https://www.digital-accountants.com/?p=165

[UPDATED] PwC Australia Diversity and Inclusion Manager Who Mocked Chinese Accents Had to Be Told You Aren’t Supposed to Mock Chinese Accents

Christina Lane

[Updated original post from Sept. 28 with additional information on PwC Australia’s internal investigation. Update is at the bottom of this article.]

Australian Financial Review has a blockbuster of an exclusive this morning, one that involves “a human resources executive dressed as a bat from Wuhan” and a senior manager of diversity and inclusion mocking Chinese accents at a PwC Australia trivia event last week.

From AFR:

The virtual trivia was run by members of PwC’s human resources team as a work event for the national infrastructure division.

These senior staff members’ responsibilities include improving diversity at the firm and being part of the complaints process for staff who feel they have faced racial discrimination or harassment.

Let’s rewind. The event was run by members of PwC’s human resources team whose responsibilities include improving diversity at the firm and being part of the complaints process for staff who feel they have faced racial discrimination or harassment. I can totally see why a leader of this event would think it’s a good idea to dust off the ol’ bat costume because LOL Wuflu, amirite?! Oof.

In a statement to AFR, PwC Australia CEO Tom Seymour said that this behavior “did not reflect the values and culture of our firm” and that he is “extremely disappointed that this incident has occurred.” You’ll note he added that offending some staff was “unintentional,” which makes us wonder if senior staff doing this intentionally might actually be marginally better since it can be written off as assholes meeting expectations rather than morons doing racist things at firm events and being surprised when people get offended.

Thanks to the brave souls who brought this incident to the attention of the media, PwC Australia has opened an internal investigation which will no doubt lead to much hand-slapping and tsk-tsking directed at the offending (no pun) individuals.

The firm’s leadership team met on Saturday morning after becoming aware of the event on Friday, with Mr Seymour emailing all partners about the incident on Monday.

He also held a town hall meeting on Monday afternoon in which he apologised to everyone who had attended the trivia event, and further firm-wide communications were sent on Tuesday.

Staff members at the town hall meeting were initially frustrated by suggestions from the leadership team that an internal investigation may take weeks to resolve, with one telling the Financial Review that the matter should be better prioritised.

Prioritized it has been, with the firm telling AFR it will be fast-tracking the investigation and expects to make its findings sometime next week.

This whole thing brings to mind how KPMG UK chair Bill Michael had to quit after comments he made to staff in a virtual town hall earlier this year were made public, which eventually led a firm vice-chair to say KPMG is actively discouraging staff from going to the media when the firm does something stupid. Perhaps PwC Australia will be the next firm to need a good roll of Flex Tape to stop the leaky sieve.

PwC investigates HR executives after ‘racist’ trivia event [Australian Financial Review]
PwC probes ‘racist and offensive’ internal staff event [Accountants Daily]

UPDATEAustralian Financial Review reports that the employees involved have been fired and “the partners associated with the incident have been financially penalised as part of CEO Tom Seymour’s response to the scandal.” Read more here.

The post [UPDATED] PwC Australia Diversity and Inclusion Manager Who Mocked Chinese Accents Had to Be Told You Aren’t Supposed to Mock Chinese Accents appeared first on Going Concern.

Did you miss our previous article…
https://www.digital-accountants.com/?p=142

Early Black-Owned CPA Firms Pushed For Diversity Before Pushing For Diversity Was Cool

Christina Lane

Firms established by pioneering Black CPAs decades ago created an indelible legacy within the accounting profession. Built by Black CPAs who succeeded despite adversity, the firms continue to play an important role in the profession’s recruitment and advancement initiatives, and with the clients they serve. Here are a few examples.

Guiding others along the journey

Benjamin King Sr. became Maryland’s first Black CPA—and the nation’s 48th—in 1957. In trying to earn his CPA credential, he was unable to get hired even when he offered to work for free, despite his experience as an auditor with the Army Audit Agency. He moved from Washington, DC, to Prince George’s County because Maryland had a less-restrictive experience requirement for the CPA license. After establishing Maryland residency status and passing the exam, he launched a firm with Maryland’s second African American CPA, Arthur M. Reynolds Sr. King, and other new local Black CPAs kept other jobs because initially there wasn’t enough work to sustain their firms full time.

King’s firm was still able to help other young Black professionals become CPAs. “It was built on the premise of helping,” said Tony King, CPA, CGMA, Benjamin’s son. As the elder King’s career advanced and he became an adjunct lecturer at Morgan State University, a historically Black college and university, he invited its current and future accounting students to reach out to him for mentorships, internships, or job opportunities. “There are probably numerous Black CPAs in the area who can attribute their CPA credentials to him,” Tony King said. The elder King also recruited close to home. None of his children were allowed to get their driver’s license before they’d spent some time working in the firm. All five are accountants, and Tony and two sisters run King, King & Associates (KKA) today.

As noted in the Black CPA Centennial’s April article, “Breaking a Barrier: The First Black Partner of a Big Eight Firm,” Thomas S. Watson Jr. teamed up with another Black CPA, Robert Rice, to found Watson Rice & Company (now known as BCA Watson Rice LLP). Watson Rice was believed to be one of the largest Black-owned CPA firms in the world during the 1980s. Watson wanted to create a path to help other Black CPAs like himself achieve success in the accounting profession.

Seizing new opportunities

Although larger white-owned accounting firms slowly began to hire Black professionals as the 20th century progressed, Black CPAs often left because they concluded it would be too difficult for a Black person to be named partner. “That was the catalyst” for the birth of many new Black-owned firms, according to George Willie, CPA, CGMA, managing partner of Bert Smith & Co.

At the same time, by the late 1960s and early 1970s, opportunities for minority-owned firms began to increase. Black businesses—including CPA firms—benefited from certain federal programs and prohibitions against discrimination in contracting and procurement. Black-owned firms were able to serve governments and agencies and to become advisers for an expanding population of Black professionals and entrepreneurs, according to Willie. And although the large firms may have lagged in promoting Black professionals, they did often bring in smaller Black-owned firms on engagements or refer work to them, especially on government accounting engagements, another factor in the minority firms’ success, he said. In fact, Willie said, alliances between large firms and smaller minority-owned firms—such as one between BDO and Black-owned firms, in which his firm is involved—can be critical to the smaller firms’ survival. Given the challenges facing many minority-owned firms, “collaboration with and tangible support from the major firms, through alliance, may offer a future” for smaller firms struggling to succeed.

Recognizing that diversity is an economic imperative, the leaders of Black-owned firms today take a variety of steps to benefit from contributions by people with a variety of backgrounds, as two firms’ efforts show. Willie’s firm, for example, continues to be involved in major engagements with several large national firms. That enables staff from both practices to get to know each other and their firms, Willie noted. At KKA, many of the firm’s associates have been people of color from outside the United States, and the firm has non-minority clients, as well. BCA Watson Rice LLP also has a long history of having firm associates and partners from diverse backgrounds and was supporting diversity, equity, and inclusion efforts well before the term was coined.

Expanding the talent pool

Thomas S. Watson Jr. taught his son Timothy, CPA, about the profession. During Timothy’s childhood, his father introduced him to audit engagements and computers and often took him to business meetings. “I didn’t always understand what was going on, but I learned enough to know I wanted to follow in my father’s footsteps,” he said.

Benjamin King Sr. influenced a young family friend to become a CPA. The woman was about to start college and told King Sr. that she was going to study math and become a teacher, according to Tony King. In one sitting, King Sr. successfully convinced her to change her career plans, pointing out all the CPA profession had to offer.

However, given the low percentage of Black CPAs, Black students are less likely to learn about the profession from family or friends. Tony King advocates for efforts to introduce students of color to the profession in high school before they decide on a college major. “They’re not going to change their major when they’re a sophomore or junior,” he said.

Improving the number of Black CPAs will require, among other things, getting the word out, said Willie, who speaks frequently about the profession to minority student groups. He believes the message should emphasize the many opportunities the profession can provide and the financial rewards it can offer. He recommended that other Black CPAs and firms get involved in efforts to share their experiences with Black young people “to present a profession that represents success.”

To attract and retain Black professionals, firms will have to offer them an opportunity to take on challenging assignments and to advance as their expertise grows, Willie said. “That is the most critical issue,” Willie said. “That is the reason our staff stays with us.”

About the author:

Anita Dennis is a freelance writer based in New Jersey.

The post Early Black-Owned CPA Firms Pushed For Diversity Before Pushing For Diversity Was Cool appeared first on Going Concern.

3 Good Reasons to Switch to Cloud Accounting

Christina Lane


Even if you own a relatively small business, you can afford to utilize cloud accounting.

The accounting industry is always changing. Advances in technology change the landscape, which is true for many facets of modern life. Even if you own a relatively small business, you can afford to utilize cloud accounting. This approach will, hopefully, optimize your business operations. Finding ways to cut operating costs that do not come at the expense of employees, customers, and clients is always the right move. Let’s talk about some of the compelling reasons to make the switch.

It Increases Overall Data Security 

First and foremost, protecting your internal data and those of your customers is essential. Data leaks do more than cause a loss of face; they can ruin your business reputation as well. While larger national chains can absorb the financial backlash from such an incursion, your local shop down the block might not be able to do the same. Years ago, before the cloud concept had matured, many financial services experts were hesitant to join the hype train. But cloud accounting has gotten more sophisticated to the point where it is no longer bound to physical assets such as hard drives and computers. 

It Gives You the Big Picture

These days, streaming media and videos are all the rage. This transition has been a long time coming. Newer platforms such as Netflix ended up making their predecessors, such as Blockbuster, obsolete. Don’t let that happen to your business! Your organization deserves to surge as much as those who are already known around the world. Cloud accounting allows you to see the “bigger picture” of your business’s financial health in real-time. Besides, frequent updates and patches strengthen firewalls against hackers and other intruders. By linking your accounting software to your bank account, you can see the way incomes and outflows represent your transactions

Synergizes with Internet Access and Verified Credentials 

Working from home or otherwise working remotely has turned 9-5 office culture upside down. Even after Covid has been overcome, a so-called hybrid work schedule will likely remain. Have you instituted direct deposit payments for your employees? Instead of receiving paper paychecks, your team can go online and access your company’s cloud portal. As long as they are properly authorized, your workers can help spot irregularities and report problems.

Trust the Professionals at the Harding Group

Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for consultations and strive for open communication with our clients. 

Are you interested in business advising, tax preparation, bookkeeping and accounting, payroll services, training + support for QuickBooks, or retirement planning?  We have the necessary expertise and years of proven results to help. 

We gladly serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of tax time, contact us online or give us a call at (410) 573-9991 for a free consultation. For more tax tips, follow us on FacebookTwitterYouTube, and LinkedIn

The post 3 Good Reasons to Switch to Cloud Accounting appeared first on The Harding Group.

Create, protect and sustain value – the role of accountants as trusted professionals at the heart of sustainable organisations

Christina Lane

/* custom css */
.tdi_2,
.tdi_2 .tdc-columns{
min-height: 0;
}.tdi_2,
.tdi_2 .tdc-columns{
display: block;
}.tdi_2 .tdc-columns{
width: 100%;>

/* custom css */
.tdi_4{
vertical-align: baseline;
}.tdi_4 > .wpb_wrapper,
.tdi_4 > .wpb_wrapper > .tdc-elements{
display: block;
}.tdi_4 > .wpb_wrapper > .tdc-elements{
width: 100%;
}.tdi_4 > .wpb_wrapper > .vc_row_inner{
width: auto;
}.tdi_4 > .wpb_wrapper{
width: auto;
height: auto;>

Analysis from ACCA (the Association of Chartered Certified Accountants) uncovers the drivers of change shaping sustainable business and the must-have capabilities needed from accountants as sustainable business and finance professionals of the next decade.

ACCA is building on its global research programme with the launch of the new report, Professional accountants at the heart of sustainable organisations. This latest research considers the future of the accountancy profession and identifies four new emerging career zones of opportunity for finance professionals where they can make vital contributions to businesses and other organisations:

• Zone 1: Transformation drivers

• Zone 2: Enterprise analysts

• Zone 3: Assurance providers

• Zone 4: Stakeholder reporters

The report also outlines the core competencies needed in assessing the outlook to 2030, reflecting the skills, knowledge and behaviours required for an ACCA-qualified accountant to meet the future needs and demands of the profession. Individuals will need to balance these core capabilities – such as collaboration, ethics, sustainability and expertise – to fit their role and stage of career.

Helen Brand OBE, chief executive of ACCA, said: ‘With the unprecedented challenges the world has faced since the start of the Covid-19 pandemic, our world today is not as many expected. This new report emphasises the role of business in society. Organisations large and small – in the private and public sectors – will play an essential role in forging a better world for the longer term beyond the ravages of the pandemic, and in dealing with the growing environmental emergency. The accountancy profession is an integral part of this.

‘The newly identified career zones represent a wealth of opportunity for accountancy jobs in all sectors and industries across the globe. Professional accountants are the sustainable business and finance professionals of the next decade, driving good business decision-making, creating new organisational value, protecting existing value, and communicating that value to the outside world through their reporting.

‘In tomorrow’s complex world, a human touch is still needed, where finance professionals bring their competencies, ethical and professional judgment to bear alongside their technical mastery and technological know-how to support organisations to generate sustainable societal value.’

The report uses findings gathered over the past two years, including a survey of over 2,000 responses from finance professionals, and is enriched by a wide-ranging and extensive engagement programme of roundtables with external stakeholders across the world from October 2020 to June 2021. These explored the drivers of change impacting the profession as well as examining the core capabilities needed by accountants in the future including consultation with focus groups, ACCA global forums and market specific external experts.

This engagement has informed ACCA’s new skills framework, which details the essential capabilities that all sustainable business and finance professionals will need to thrive in the future. Furthermore, it showcases how these capabilities will be needed across the various career opportunities ahead.

Report author, Jamie Lyon, said: ‘With growing organisational complexity, competing stakeholder needs, monumental societal change, workforce transition, challenged finances, technological disruption and an environmental emergency, organisations across the globe are challenged as never before. The 2020s in accountancy are a decade in which the profession is integral to building sustainable businesses that generate both financial returns and long-term value for society, while caring for the planet.

‘The Covid-19 crisis has accelerated business change at a pace unimaginable before the onset of the crisis and has presented organisations with unforeseen challenges but also unprecedented opportunities. There are major drivers of change that organisations now must navigate as they seek to be sustainable financially for the long term and create societal value -from the economy, to geopolitics to the climate crisis. It’s a world of great opportunity for the sustainable business and finance professional.’

To help people understand the opportunities, ACCA is also launching a new career navigator. This tool will help users understand the core capabilities needed at different stages of a career journey and set them apart as a sustainable business and finance professional. They’ll be able to plan their career path by exploring emerging career opportunities and job roles mapped to the blend of capabilities these require, and access relevant learning and job opportunities.

Find more information here.

The post Create, protect and sustain value – the role of accountants as trusted professionals at the heart of sustainable organisations appeared first on Accounting Insight News.

BrightPay and Relate Software join forces to create an accounting & payroll software champion

Christina Lane

/* custom css */
.tdi_6,
.tdi_6 .tdc-columns{
min-height: 0;
}.tdi_6,
.tdi_6 .tdc-columns{
display: block;
}.tdi_6 .tdc-columns{
width: 100%;>

/* custom css */
.tdi_8{
vertical-align: baseline;
}.tdi_8 > .wpb_wrapper,
.tdi_8 > .wpb_wrapper > .tdc-elements{
display: block;
}.tdi_8 > .wpb_wrapper > .tdc-elements{
width: 100%;
}.tdi_8 > .wpb_wrapper > .vc_row_inner{
width: auto;
}.tdi_8 > .wpb_wrapper{
width: auto;
height: auto;>

The combined business will provide an integrated suite of cloud payroll and accounting software tools for accounting bureaus and small to mid-sized businesses in the UK and Ireland.

BrightPay, a leading provider of payroll and HR software solutions, and Relate Software (“Relate”), a champion in post-accounting, practice management and bookkeeping software, today announce that they have agreed to join forces to create a software champion serving payroll and accounting bureaus and SMEs across the Republic of Ireland and the United Kingdom.

Paul Byrne, co-founder and CEO of BrightPay, and Ray Rogers, co-founder and CEO of Relate, will remain as significant investors in the combined business and will become co-CEOs. Ross Webster and Richie McMahon, also co-founders of BrightPay and Relate respectively, will also remain as investors and will continue to focus on developing the combined business’ best-in-class product suite.

Hg, a leading software and services investor with over two decades’ experience in growing tax & accounting technology businesses across Europe and North America, will become majority investor in the combined business.

The two complementary businesses will bring together their operational strengths and sector-leading products whilst, with the support of Hg, investing further in new cloud innovations to deliver increased automation, efficiency and value for their customers. The combined group will have over 190 employees and has plans to further grow headcount to continue providing best-in-class services and support for its payroll, accounting and SME customers across both the UK and Ireland.

Paul Byrne, founder and CEO of BrightPay, said: “We are delighted to be joining with Ray and his team at Relate. They have a proven track record in a sector we know well and, together, we will aim to be a leading solution for many businesses and accountancy firms. We are also delighted that Hg continues to support us. Their deep sector knowledge has proven invaluable to us and will be instrumental in fuelling the further growth of BrightPay/Relate.”

Ray Rogers, founder and CEO of Relate, said: “Combining products from both businesses will provide a compelling offering for our customers, with the scope and backing for further innovation and development. I’m looking forward to working with Paul and am also excited to welcome Hg, a leading software investor with a track record of supporting growth in Irish software businesses.”

Jonathan Boyes, Hector Guinness and Thomas Martin at Hg, said: “Both BrightPay and Relate are very highly regarded businesses and champions in their field. The two companies bring together core operational strengths whilst also unlocking a high-quality, complementary suite of products to a newly combined customer base. We’re proud to bring together this highly accomplished team. This is a sector and region we know deeply and we are excited for what we’ll all be able to achieve together.”

The terms of the transaction are not disclosed.

The post BrightPay and Relate Software join forces to create an accounting & payroll software champion appeared first on Accounting Insight News.

Did you miss our previous article…
https://www.digital-accountants.com/?p=77