Ten Tips for a Smoother, More Profitable Tax Season

At the beginning of every tax season, I have the best intentions. I exercise, eat right, and get enough sleep. Then it happens. Two-thirds of the way through the busiest months, something really big goes wrong, and my balanced life snowballs into chaos. Does this happen to you?

Even if something doesn't go wrong, you might be the type of person who reaches the edge of burnout every year at the end of tax season. You might hate the high-pressure, deadline-riddled, fast-paced environment. How can you find your balance amid the chaos? Here are ten tips to help you survive this season.

1. Remember why you're there in the first place. Our business is an excruciatingly detail-oriented affair, and it's easy to get caught up in the minutiae of the moment. When you realize you're drowning in details, stop, take a deep breath, and take in the big picture. Think about what your overarching business and personal goals are. Remind yourself of your friends and family. This exercise will help you reframe what's really important to you and will help you put the daily details back into the right perspective.
   
   
2. Communicate your appreciation. Without a team to help you get your work done, tax season would be much harder. Show your gratitude to your team (and your family) with frequent positive comments, ranging from the general "I really appreciate the work you do" to the specific "Your spreadsheet covering the Cassidy project was very well thought out."
   
   Do this more often than you think you need to. People can't get enough personal feedback in this digitally detached world. Praise keeps the stress level down in the office. It will give you a lift too: gratitude is one of the fastest ways to change your mood for the positive.
   
   
3. Systematize your processes. Lost productivity and mistakes often stem from misunderstood responsibility and authority. A smooth tax season starts when everyone knows the flow of work, what their jobs are, and how much authority they have to make decisions. Make all of these items clear by designing systems, processes, and procedures that your team can follow.
   
   
4. Train, train, train. Inevitably, one of your team members will get sick, pregnant, or resign at exactly the wrong time. Cross-training your team to be able to do each others' jobs will save you time and reduce your stress. It's hard to stop and make time for training, but there are rewards to taking the extra time. Your employee feels more empowered and becomes more valuable once the new skill has been mastered. The next time the skill is required, you can delegate the task and free up your time.
   
   
5. Just say "no." Saying "no" can be difficult for some people. But I promise you will get at least one client who will try to monopolize your schedule at the last minute, will not have all the input you need so that you have to start and stop five times on the work, and will insist on a bargain price!
   
   Set deadlines for client input. Be able to say "no" to unreasonable requests. You'll be able to help five clients in the time one unruly client takes up, and your profitability will soar.
   
   
6. Commute calmly. On your way to and from work, listen to an upbeat music CD, a comedy act, or a motivational tape. You'll be in a better mood no matter what the traffic was like. Buy CDs for your staff, too.
   
   
7. Perk up your staff. A great way to de-stress your office is to add some perks, and I don't just mean bringing in a few sugar-laden sweet rolls in the morning. In the middle of your busiest time, consider some of the following ideas:
   
   
   • Bring in a masseuse who can do ten-minute neck and shoulder massages during lunch.
   • Hire a personal assistant who can be shared among your employees to help them with errands like dry cleaning pickups, grocery runs, and gift shopping.
   • Send employees' spouses a wonderful appreciation gift.
   • Supply healthy in-office snacks and meals that build energy rather than drain it.
     
     
8. Prioritize. If you begin to feel overwhelmed, get organized. Prioritize your to-do list, and work it, one at a time. When you cross a task off, do a little dance or shout a "Woohoo!" Make sure your staff is clear on their priorities, too.
   
   
9. Take the high road. In a high-pressure environment, we're often tightly wound. It doesn't take more than a small slight from another to set us off into a rampage. If you're prone to reactive behavior, it will help to understand a quick fact about how your brain is wired. We have two pathways in our brain:
   
   1. The low road (the fast pathway) to reaction that is wired directly from our senses to our emotion center. This is what keeps us alive when we swerve quickly to avoid a car accident or when we notice a snake on the ground. It also gets activated when we might feel a bit threatened at work.
      
   2. The high road (the slower pathway) that is wired to the reasoning center in our brain. Here we can take the time to analyze, process, and react accordingly to what's happening in our environment.
      
   
   If someone says something to you that activates your "low road," become aware of it, take a breath, and if there is no immediate danger of dying, let your "high road" catch up before you say or do anything.
   
   
10. Model leadership. Emotions are contagious. So is stress. If you are in a negative mood, everyone in your office won't be far behind. But if you come in every morning in a calm and cheerful mood and with your sense of humor intact, you can influence the whole office to follow your lead. It's a lot more fun for everyone to work in a cheerful office.
    

When you and your employees are happier and de-stressed, you'll be more productive, do better work, make fewer mistakes, and be healthier, too. I wish you a joyful and profitable tax season.

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Heritage to be 'valued' under new bookkeeping

NEW DELHI: Fancy buying the Taj Mahal or the Qutab Minar for Re 1? Well, that could be the price the gov government may assign to most heritage structures when it switches to a more transparent system of accounting its assets and liabilities over the next two-three years.

The government is finalizing a road map to move to a system of “accrual-based accounting” from the current cash-based accounting system to better reflect the nation’s assets and liabilities in its annual financial statement. The new system is meant to capture some of the government’s liabilities and assets that now find no mention in the annual budget.

One key aspect of the proposed accrual based accounting system is to include national assets through a process called “heritage accounting” . Under this system, historic monuments , museums and paintings will find mention in the government’s statement, but its treatment may be different from other commercial assets.

Read More Article...

Accounting Outsourcing Tips

Businesses of all sizes need to ensure that accounting is paid due attention, since accounting it is at the core of any business process. In recent times more and more small and medium size businesses are considering accounting outsourcing. The decision to outsource accounting and bookkeeping allows a company to concentrate in their area of specialization and not worry about the accounting aspect of the business. Outsourcing has several advantages and these include the following:

• The services of experts are available at a fraction of what would have been paid to hire them on a full time or part-time basis.
• Outsourcing relieves the company of the tedious and yet crucial process of accounting bookkeeping.
• When a company considers outsourcing not only does it not bother with recruitment of accounting professionals but also saves on office space and related expenditure.
• An offshore accounting outsourcing service provider provides reliable and competent services that are an asset to the company and simplify its working.
  

When outsourcing small business accounting and finance it is important to keep certain tips in mind in order to make informed decisions:

1. Be clear about what you expect of the accounting company that you are outsourcing to. It is vital that you specify the needs of the job and what you expect from the outsourcing service provider. This will ensure that both companies have a clear understanding of what is expected and what is being delivered.
   
   
2. Is the accounting outsourcing company reliable and dependable?Do not make a decision blindly, but in fact take the time and effort to check on the references provided by the outsourcing company. Accounting needs to be done by certified public accountants and in case of offshore outsourcing you need to confirm that the accountants are qualified to handle and provide accounting solutions.
   
   
3. Don't shy away from asking the vendor about similar accounting management projects that they have worked on. You don’t want a trial and error technique used on your small business accounting. It would be a good idea to ask the accountants to provide material that indicates their skill and knowledge of accounting, auditing and bookkeeping.
   
   
4. Reviewing previous projects that the vendor has done will give you a fair idea of the level and quality of accounting that they can deliver. You could also ask the accountants as to how they would like to handle the accounting information, so that you can judge their line of thinking and working. It is also recommended that you initially start with a pilot project that will assure you of the services that you have been promised.
   
   
5. While the total cost may be a guiding factor when you are selecting an accounting company, it should not be the only factor. The lowest bidder need not always be the best bet. Accounting and any deficiencies in the process can create serious legal problems for the business and you would not want to risk that. A large percentage of small and medium businesses that have turned to accounting outsourcing have done so not just because of the low costs but also due to the quality of work that they are assured.
   
   
6. It is important that you have a contract drawn up that clearly specifies what is expected of the project and how and when it will be completed. Such an understanding facilitates transparency in the dealings with the outsourcing accounting service provider.
   
   
7. Start with a small project and take it from there. To begin with provide a small amount of work and allow the outsourcing accounting company to prove its caliber.
   
   
8. Creating milestones in the project will help create a smooth flow of work to its completion. Also this ensures that both parties are clear on the deadlines and required work. Furthermore it allows the company to make payments in installments as and when the work is completed.
   
   
9. Security issues need to be discussed upfront and you need to be clear on the security measures taken by the accounting outsourcing company to protect crucial accounting data. Accounting information is crucial to the success of every business and any leak of such information can have drastic consequences. You would need to discuss how accounting, auditing and bookkeeping files will be transferred securely to the outsourcing company and also issues such as how accountants will have access to these files.
   
   
10. Communication with the accounting outsourcing firm is of utmost importance and you should be able to interact and communicate freely. Thus the service provider ought to have communication facilities that are satisfactory and should be easily contacted.
    
    Accounting outsourcing should ideally be an asset for any small or medium business. And keeping these tips in mind can make that a reality.
    

Read More Article

Heritage to be 'valued' under new bookkeeping

NEW DELHI: Fancy buying the Taj Mahal or the Qutab Minar for Re 1? Well, that could be the price the gov government may assign to most heritage structures when it switches to a more transparent system of accounting its assets and liabilities over the next two-three years.

The government is finalizing a road map to move to a system of “accrual-based accounting” from the current cash-based accounting system to better reflect the nation’s assets and liabilities in its annual financial statement. The new system is meant to capture some of the government’s liabilities and assets that now find no mention in the annual budget.

One key aspect of the proposed accrual based accounting system is to include national assets through a process called “heritage accounting” . Under this system, historic monuments , museums and paintings will find mention in the government’s statement, but its treatment may be different from other commercial assets.

Read More Article...

Selecting a new accounting system

When selecting a new accounting system, a Clever Company will use a structured process to ensure the new software will work in its business. If you fail to do this, the result may be an association with a software vendor that is not only time consuming and frustrating – but also potentially very costly.

You’ll need to be able to identify any one of a number of 'indicator' signs that your system may need to be replaced.

These include:

• The length of time your current system has been used. As a general rule (assuming you’ve had no upgrades), software needs to be replaced about every seven years. Because computer technology advances rapidly, systems older than seven years are often built to an old design that may prevent your business operating efficiently in today’s market.
• The use of spreadsheets or databases to produce information. Many companies overcome software deficiencies by using other packages to format or produce the information they require to manage their business.
• Linked to the point above, the inability to produce timely information.
• Frequent requests, from users, for additional information.
• A large number of customizations in the software.
• Changes to the size, structure or operations of the business since the current system was implemented.
  

A key decision when considering replacement software is to weigh up the functionality, you’d like to see in the software, with your budget and sophistication of your organization.

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Basic bookkeeping & Accounting Principles For Business

A good knowledge of basic accounting principles is essential to any business: Dragon’s Den contestants can rarely be questioned for their passion and enthusiasm, however, when it comes to the finances many a contestant has been publicly slain for a lack of basic financial acumen.

Failing to keep good financial records and making business decisions based on inadequate information can be fatal for smaller companies and often proves the downfall of even the best entrepreneur.

It is important for any business to remember that a company’s books and financial statements show how the organisation is progressing, as well as enabling the company to predict when and why things may be going wrong.

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Accounting is Critical to the Success of Every Business

There are three primary reasons accounting is critical to the success of every business:

• Tax Planning
• Cash Flow Management
• Management Information
  

Lets go through each of them in the order above.

Tax Planning

How would you like to be the coach of a basketball team, but were not allowed to see the score, nor the statistics until the end of the game? Does it surprise you that many small business owners run their businesses this way?

Many small business owners just collect all their financial information in a box during the year. After the year is over, they will drop these on a tax preparer's desk, and hope the tax person can figure the assortment of papers out. The tax preparer then does his/her best to sort through the materials, and arrive at the information the IRS is looking for. Then a phone call to the wearied business owner will notify him/her of the damages.

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Top Ten Accounting Outsourcing Tips

Businesses of all sizes need to ensure that accounting is paid due attention, since accounting it is at the core of any business process. In recent times more and more small and medium size businesses are considering accounting outsourcing. The decision to outsource accounting and bookkeeping allows a company to concentrate in their area of specialization and not worry about the accounting aspect of the business. Outsourcing has several advantages and these include the following:

• The services of experts are available at a fraction of what would have been paid to hire them on a full time or part-time basis.
• Outsourcing relieves the company of the tedious and yet crucial process of accounting bookkeeping.
• When a company considers outsourcing not only does it not bother with recruitment of accounting professionals but also saves on office space and related expenditure.
  

An offshore accounting outsourcing service provider provides reliable and competent services that are an asset to the company and simplify its working.

When outsourcing small business accounting and finance it is important to keep certain tips in mind in order to make informed decisions:

1. Be clear about what you expect of the accounting company that you are outsourcing to. It is vital that you specify the needs of the job and what you expect from the outsourcing service provider. This will ensure that both companies have a clear understanding of what is expected and what is being delivered.
   
   
2. Is the accounting outsourcing company reliable and dependable?
   Do not make a decision blindly, but in fact take the time and effort to check on the references provided by the outsourcing company. Accounting needs to be done by certified public accountants and in case of offshore outsourcing you need to confirm that the accountants are qualified to handle and provide accounting solutions.
   
   
3. Don't shy away from asking the vendor about similar accounting management projects that they have worked on. You don’t want a trial and error technique used on your small business accounting. It would be a good idea to ask the accountants to provide material that indicates their skill and knowledge of accounting, auditing and bookkeeping.
   
   
4. Reviewing previous projects that the vendor has done will give you a fair idea of the level and quality of accounting that they can deliver. You could also ask the accountants as to how they would like to handle the accounting information, so that you can judge their line of thinking and working. It is also recommended that you initially start with a pilot project that will assure you of the services that you have been promised.
   
   
5. While the total cost may be a guiding factor when you are selecting an accounting company, it should not be the only factor. The lowest bidder need not always be the best bet. Accounting and any deficiencies in the process can create serious legal problems for the business and you would not want to risk that. A large percentage of small and medium businesses that have turned to accounting outsourcing have done so not just because of the low costs but also due to the quality of work that they are assured.
   
   
6. It is important that you have a contract drawn up that clearly specifies what is expected of the project and how and when it will be completed. Such an understanding facilitates transparency in the dealings with the outsourcing accounting service provider.
   
   
7. Start with a small project and take it from there. To begin with provide a small amount of work and allow the outsourcing accounting company to prove its caliber.
   
   
8. Creating milestones in the project will help create a smooth flow of work to its completion. Also this ensures that both parties are clear on the deadlines and required work. Furthermore it allows the company to make payments in installments as and when the work is completed.
   
   
9. Security issues need to be discussed upfront and you need to be clear on the security measures taken by the accounting outsourcing company to protect crucial accounting data. Accounting information is crucial to the success of every business and any leak of such information can have drastic consequences. You would need to discuss how accounting, auditing and bookkeeping files will be transferred securely to the outsourcing company and also issues such as how accountants will have access to these files.
   
   
10. Communication with the accounting outsourcing firm is of utmost importance and you should be able to interact and communicate freely. Thus the service provider ought to have communication facilities that are satisfactory and should be easily contacted.
    

Accounting outsourcing should ideally be an asset for any small or medium business. And keeping these tips in mind can make that a reality.

Read More Article

EU says to relax mark-to-market accounting rules

Banks in the European Union will be allowed to skirt an accounting rule blamed by critics for exacerbating the impact of the credit crunch and triggering fire sales of assets, EU president France said on Tuesday.

EU finance ministers agreed to change how the mark-to-market rule is applied in the third quarter so that European banks are treated in the same way as their U.S. competitors in the face of the worst financial crisis in 80 years.
Under U.S. accounting rules, banks in rare circumstances can move an asset from their trading book, where assets are valued on a mark-to-market basis, to their bank book, where assets are held to maturity and valued at cost.

The U.S. authorities formally encouraged this last week to ease the pain on banks facing an uphill task to recapitalise.

"In accounting, the American groups are authorised to transfer assets from their trading book, where they evaluate assets at mark-to-market," said Christine Lagarde, finance minister for France, which currently holds the rotating EU presidency.

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Accounting vs. Technology - Who’s At Fault

Did technology play a role in the financial services meltdown?

A columnist for a major IT publication documented his positions on the role of IT in the current financial services meltdown. He asked questions such as “Were the internal IT groups in these firms working on projects that were misaligned with the financial services firms’ business strategy?” The article attempted to place blame where it does not belong.

At the heart of a these spectacular business failures rests a complex and intentionally opaque maze of documents that were designed to obscure anyone’s understanding of the true risk involved in the financial instruments being sold. These instruments wrapped up a mix of high, medium and low risk mortgages into prepackaged bundles that few people could understand. Fewer still understood that these mortgage portfolios would be so vulnerable to a drop in housing values nationwide. Over time, we will probably learn that this obfuscation was absolutely intentional. The firms that created these documents and the financial instruments that went with them were built them in a way that few people could ever understand.

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Accounting error may cause Medicis to restate earnings

Medicis said Wednesday that it will likely restate earnings since 2002 due to an accounting error, an announcement that prompted shareholders to bid down the stock 13 percent.

The Scottsdale-based marketer of prescription and aesthetic skin products said it did not immediately know how much a restatement may affect earnings and revenue, but it said cash flow will not be affected.

The accounting snafu comes as the company faces pressure on two fronts - looming generic competition for its Solodyn acne treatment and the potential that a slowing economy could diminish consumer appetite for its anti-wrinkle skin fillers Restylane and Perlane.

Those factors and the potential restatement prompted the company to say that its earnings guidance for the remainder of 2008 is no longer valid.

Medicis shares closed Wednesday at $15.58, down $2.34.

The company described the accounting issue as a technical error measuring its sales-return reserves. Its balance sheet reflected the cost of making such products rather than the wholesale price.

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Accounting and financial reporting are like scorekeeping

Chennai: All of a sudden, conferences and seminars on IFRS (the International Financial Reporting Standards) are the in-thing, where you can find accounting professionals busy taking notes and asking questions, so that they are ready for the 2011 deadline when India will be converging with IFRS.

But why should we be focussing on the IFRS now? When posed that query, Dr Kamal Gupta, former Technical Director of the Institute of Chartered Accountants of India (ICAI), asks in response, "Can India be isolated, if more than 100 countries already adopt IFRS, and more than 150 will adopt it by 2011?"

Even in the US, with a prime GAAP, something epoch-making has happened - subject to certain conditions, the domestic US companies will be moving towards IFRS, he adds. "If the US does it, the UK does it, Brazil, China, Russia… how can India be left."

Most of our companies have global kind of links, be it for exports, imports, shareholding, and so on, reminds Dr Gupta during an evening interaction with Business Line recently. "Therefore, we must do our accounting in a manner that the world understands. So I think more than ever, there is a need for it. The Institute, the Government, the industry recognise it."

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IASB proposed pension accounting rules "unpopular"

US - Employers facing swelling pension plan demand must assume more active influence in the International Accounting Standards Board accounting rule-change process, according to a Watson Wyatt consultant.

"We want to make sure that companies are letting the IASB know their views," said John Steele, a retirement consultant at global consulting firm Watson Wyatt.

"This is the fundamental groundwork for how they're going to proceed."

The IASB's proposed rules shorten the cost measurement period for pension plans in order to follow volatility in the markets. In addition, the rules expect to improve cash balance measurement, place stricter rules on when plan gains and losses are recognised and compile plan performance and experience in the profit and loss account of the company.

Cathy Graham of North Carolina-based The Employers Association said pension plans were already declining in popularity and rules changes would not help the matter.

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Survey: IT and accounting hiring in D-FW could increase in Q4

The hiring of CFOs and chief information officers in the Dallas-Fort Worth area is expected to increase in the fourth quarter, according to surveys from Robert Half International and its technology subsidiary.

The report is published from data compiled during surveys of 200 CIOs and 200 CFOs working in the Dallas-Fort Worth area. The latest index indicates that 16 percent of the surveyed CIOs expect to hire new staff members in the fourth quarter. Only 4 percent of CIOs anticipate personnel reductions in the quarter.

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AccountMate Releases Latest Version of LAN Accounting Software

New Version of Accounting Software Released With Over 200 Enhancements

Today AccountMate Software Corporation released AccountMate 7 for LAN with more than 200 enhancements over the prior version.

Thousands of growing companies have been successful employing this software package to manage their day-to-day operations since AccountMate introduced this software platform 13 years ago.

Between the flexibility inherent in the product and the extensive enhancements that continue to be added, this business asset continues to help companies manage their bottom line. The latest upgrade of AccountMate 7 for LAN includes more than 200 enhancements improving functionality and reports.

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Tips On Starting Your Accounting Career

Accounting is the language of business. Its knowledge is fundamental to any businessperson that seeks to plan expenditure and strive for a profit. Most business professionals are therefore required to study some accounting. Accounting professionals interact with all levels of a business and for many it's a very interesting job.

Eligibility

• Individuals with an analytical approach and technical expertise of accounting, good mathematical aptitude, knowledge of the technicalities of a business system and those who are well versed with computers.
• Basic eligibility is 4 years of college for a professional degree in accounting or a related field.
• A Bachelor's degree with a minor in another subject from an accredited college or university to apply for the Master's in accounting.
• People who have done their course in accounting over the Internet are also eligible for jobs in the accounting industry.
• In terms of job, prior experience as a trainee auditor or accountant can also help.
• Different courses and licenses require accreditations and licenses of certain organizations. For example, Certified Public Accountants (CPA) should have a license by the State Board of Accountancy (STA).
• A certain number of semester hours plus work hours are considered for 4-year bachelor's degree.
• Public accountants are taken as trainees. Management Accountants start as junior internal auditors or cost accountants.
• A master's degree in business administration (MBA) is preferred by many companies.
  

Types Of Accounting Jobs

• After a degree in accounting, one could qualify for a certified public accountant (CPA) or registered public accountant (RPA) license. Even though many do not have a license, they do get jobs as auditors or accountants in government offices or private companies.
• In the long run, one could excel to a position like chief financial officer (CFO).
• A certified accounting professional could become an auditor, financial officer, management accountant, budget analyst, or tax accountant. Tax accountants are preferred with a legal background.
• An independent job could prosper if the individual has a good network of contacts.
• There are specializations in accounting; for example, the forensic accounting where the accountant investigates the different crimes breeding on the company's finances.
• Teaching accounting can also be a good career option.
  

Tips On Starting a Career in Accounting

Following are a few tips on getting started

1. Decide which field of accounting you would like to get into.
2. Research related information and shortlist colleges and universities for the given courses.
3. Consult accountants or even teachers who have knowledge of the subject.
4. Enroll in a bachelor's degree or course in accounting.
5. Start off as a trainee after getting a degree from a college. Most of the companies look for an accredited college.
6. Keep looking for hiring by the major companies of the industry.
7. Update your work knowledge according to the industry standards.
   

Accountants have a decisive role in the future of a company. Budgeting and adjusting according to the current market trends is one of the analytical decisions an accountant makes. Because they are problem solvers, the company can rely on an accountant to sort out any financial problems.

About The Author

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online ( http://www.sixsigmaonline.org ) offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

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Seven Signs of Internal Accounting Fraud

Many small business owners feel that their companies are immune to internal accounting fraud and embezzlement for two reasons: they don't have many employees, and the ones who deal with money are usually close to the owners. But regardless of size, any business is vulnerable to fraudulent activities by employees.

Following up on signs of fraud can stop accounting theft, saving a company from financial loss or ruin. In today's Workshop, contributor Jeffrey Moses lists seven indicators small business owners should consider.

1. An in-house accountant works without direct supervision on every aspect of a company's financial operations. When one trusted bookkeeper or accountant is responsible for records, payroll, receivables, deposits, payments and so on, the company is placed at risk for fraudulent activity.
2. An in-house accountant refuses to follow recently established accounting and/or payroll guidelines. In such a case, owners should demand that guidelines be strictly followed and investigate financial and payroll records for up to several years in the past.
3. An accountant continually works after hours, comes in frequently on weekends or insists on taking work home. Fraudulent activities are easier to accomplish when work is unobserved and unsupervised.
4. An accountant refuses to take a vacation. This individual may be thought of as a highly dedicated and hard-working employee, but it could be that he or she simply doesn't want anyone to discover how the books are being cooked.
5. An accountant insists that he or she handle activities for which other departments are normally responsible. These can include picking up the daily mail (for fear that something could arrive that would tip-off management), acting as the sole go-between with the company's financial contacts (banks, auditors, creditors, etc.) and working with police when items or money are found missing.
6. An accountant continually misfiles important items such as payroll receipts, deposit records, supplier correspondence and estimates.
7. Deposits frequently seem too small. Owners should always carefully monitor income and deposits, comparing sales receipts against actual amounts put into the bank.
   

Usually, there are no sure-fire tip-offs to internal accounting fraud. But by being on the lookout for any of the above seven danger signals, a small business can avert a potentially disastrous and embarrassing financial loss.

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Why small accounting firms matter

How they can save you money in the current economic downturn.

With the current economic slowdown, mid-sized companies need to overcome their bias towards the larger professional firms and become more discerning buyers of audit, accounting and legal services in pursuit of better value for money and greater efficiencies.

Smaller and medium-sized legal and accounting firms have built up their specialist services, their teams and their broad capabilities and have shown that they can compete with the much larger firms at a much lower price.

In addition, the draft Companies Bill exemption of small businesses from rigorous financial reporting requirements and audits has acted as a catalyst for a change in buying behaviour.

The Companies Bill is good for South Africa's accountancy profession as smaller companies will be drawn to those firms that are focused on providing non-audit services that are better suited to their requirements.

The new legislation will not kill off the livelihood of the smaller accountancy firms but that they will need to redefine their roles and rethink their structures.

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Global Accounting Rules: Simpler, Yes. But Better?

Dumping GAAP could ease the burden on some companies, but adopting the streamlined British model has its pitfalls

In the latest example of the waning financial leadership of the U.S., the Securities & Exchange Commission wants to dump the country's complex accounting rules in favor of a simpler set of international principles. It's a major step toward a single worldwide standard—a necessity for creating seamless global markets. But adopting the model, which is relatively new and untested, has its own pitfalls.

Junking the U.S. rules, known as generally accepted accounting principles, or GAAP, would have seemed preposterous a decade ago. Back then investors and companies, both in the U.S. and worldwide, viewed GAAP as the gold standard, a transparent system for reporting earnings and other financials. As more European and Asian companies rolled out results in the American style as well as their own, it seemed GAAP would be the top choice among bean counters in an increasingly global marketplace.

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Accounting boom shows no signs of slowing down

Enrollment in college accounting courses is up 19 percent since 2004, according to a nationwide survey administered by the American Institute of Certified Public Accountants.

The Department of Accounting, within the McCombs School of Business, has also seen an increase in students studying accounting.

"I believe the program is growing, but the quality of the program has not decreased," said Rowland Atiase, an accounting professor. "The classroom size is restricted to keep a top quality learning environment."

Last year, U.S. college campuses graduated 64,221 students with bachelor's or master's degrees in accounting - the most since the institute began its annual survey in 1970.

Urton Anderson, an accounting professor, said he has seen interest in accounting increase since 2002.

"There is never a shortage of students," he said.

This fall, 396 students out of 683 applications were admitted to UT's Master in Professional Accounting program, according to records.

"We have a very long tradition of community and faculty," said Steve Limberg, faculty director of the master's program. "Plus, our program does well because of the outstanding students it attracts."

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