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Talent
Navigating the Accounting Pipeline Crisis [CPA Journal]
Anthony J. Tucci, LLM, JD, CPA writes:
In response to widespread concern that some students avoid becoming CPAs due to the time and cost associated with post-bachelorâs degree licensure requirements (leading to what has been called the âpipeline crisisâ), NASBA and the AICPA have spearheaded an ambitious initiative to offer more affordable education alternatives to meet these requirements. On September 12, 2024, NASBA and AICPA unveiled their âCPA Competency-Based Experience Pathwayâ for public comment. This bold proposal aims to reduce accounting education costs by empowering CPA firms to step in the shoes of educational institutions, offering candidates the equivalent of 30 credit hours traditionally granted by accredited colleges and universities. The pursuit of reasonable, appropriate, and more economical paths to licensure is justified, in this authorâs opinion. But as the profession is reshaped by market and technological changesâand now a pipeline crisisâwe must be reminded of our responsibility to produce highly skilled professional accountants capable of succeeding in their careers.
Brief programming note: Our colleagues at Accountingfly politely requested we share this weekâs top remote accounting candidates with you. If your firm is hiring, check âem out!
Firm Watch
National accounting firm to exit uptown for new Ballantyne office, training center [Charlotte Business Journal]
CliftonLarsonAllen, one of Charlotteâs largest accounting firms, is moving its office to Ballantyne Village. Work will begin on the 50,000-square-foot space in May, with CLA expected to move in this December, Barrineau said. CLA signed an 11.5-year lease for the space, she said.
Grant Thornton to manage 540 aircraft for BBAM [The Irish Times]
Grant Thorntonâs Irish operation will manage 540 aircraft leases for leading aviation industry player BBAM in a deal recently agreed by the pair. The move gives the firmâs Dublin-based aviation lease service division responsibility for the management of 1,400 leased aircraft, about one in every 12 commercial jets operating in the world today.
Big 4
Big Four accountants attack IRS over âcapriciousâ US tax treatment of Coca-Cola [Financial Times]
Deloitte, PwC and KPMG have launched a scathing attack on the Internal Revenue Service, which they accused of âa pattern of arbitrary, capricious and unreasonable conductâ towards multinational companies that risks eroding confidence in the US tax system. The dispute centres on âtransfer pricingâ arrangements relating to the allocation of profits between Coca-Cola subsidiaries in different countries. The tax arrangements had been blessed by the other Big Four accountancy, EY, which has audited the drinks makerâs financial statements since 1921.
Federal Reserve Board releases annual audited financial statements [FRB]
The Federal Reserve Board on Friday released annual audited financial statements for the Federal Reserve System for 2024. KPMG issued unqualified opinions, asserting that its audit found no material misstatements in accordance with applicable auditing standards.
As EY plots senior partner layoffs, what is next for the Big Four? [City A.M.]
Over the last two years, the Big Four giants have been plagued by redundancies, but now the situation has escalated to the senior partnership. In addition to those facing the chopping block, it was reported that some equity partners will have their positions converted into non-equity partners. The news about EY follows PwC which recently made a record number of cuts to its partner ranks while pausing its tech apprenticeship scheme to protect partner profits.
EY CEO Janet Truncale is âuncomfortableâ being known as the first female Big Four boss, but has learned to embrace it [Business Insider]
âWhen the news came out about a year ago about my election, I remember the headlines really talked about âfirst woman to lead a Big Four.â And my first reaction was, âOh, why does it say that?’â Truncale said. Truncale said she felt the same when she became the first woman to lead EYâs Americas Financial Services organization, her role before CEO, and tried to downplay the achievement in a meeting with partners. But âa lot of very strong womenâ in Truncaleâs practice at the time told her that she needed to embrace the âfirst womanâ title.
Practice Management
How accounting firms reinvent themselves [CPA Canada]
In the past, accounting firm branding was simple. Accounting historian Peter Boys writes that in the late 1800s, many firms were solo or small partnerships, making it easy to name them after founders and partners. But over time, firms have expanded on national and international footprints, merged or been acquired, or faced the retirement of namesakes. As partner numbers expanded, such naming traditions became âimpractical.â Co-founder of Jackson Wynne brand consultants Paul Phillips says financial industry brands have often been stuffy. âI think itâs a risk when people stay in that lane.â Today, attracting new clients and talent requires standing out from competitors and connecting on a deeper level with clients.
AI
AI will take your job. Get over it [Fortune]
An opinion piece written by the founder and CEO of an AI company, natch.
The question isnât whether AI will change the workforce. The question is: Will you be ready? Technology has always transformed work and society. Artificial intelligence is just accelerating the pace. Imagine being a farm or factory worker in the 1850, watching new machines emerge that threatened to take your job. The fear was intense, as was the societal backlash. People rioted against automation, desperate to halt progress. But history marched forward. Machines did replace much of the grinding labor in factories and farms, yet humanity didnât crumble, it advanced. As society adapted over the following decades, life expectancy increased, work became safer, people worked fewer hours, and the global standard of living skyrocketed.
Metaâs AI Server Accounting Shift Reveals the Power of Assumptions [Bloomberg]
Many technology companies in recent years have extended their estimates of the useful life of computer servers, boosting their profits by slowing the depreciation of those assets. Meta, Skyworks, Oracle, Microsoft and Ebay have all lengthened the life of their equipment, according to data compiled by Bloomberg. Meta, for example, increased the useful life of certain servers and networking assets to five-and-a-half years in January, up from four-to-five years before. The social media company expects the change will reduce its depreciation expense by $2.9 billion this year, amounting to almost 4% of its estimated pre-tax profits for 2025.
How I used AI to boost my self-esteem and how you can do the same [Fast Company]
When I told AI my story, it helped me heal. Now, Iâm on a mission to help other people use AI to tell their own authentic stories.
Why patchy regulation is a challenge for AI [ICAEW]
In a fascinating recent round-table event, ICAEW members explored a host of issues around how the UK regulatory landscape should best address companiesâ use of artificial intelligence.
Deloitte Unveils Zora AI, Agentic AI for Tomorrowâs Workforce [Deloitte]
Deloitte is using Zora AI for Finance internally to streamline and automate its expense management processes, reducing costs by 25% and increasing productivity by 40%.
âAI Valleyâ author worries thereâs âso much power in the hands of few peopleâ [NPR]
âThe weird thing about AI is that it seems to know everything, but it doesnât understand a thing,â Rivlin says. âItâs like a parrot. Itâs repeating words randomly, but it doesnât really understand what itâs saying.â