According to the study, professionals with between one and two years on the job are less happy, less interested in their work, and more stressed than those still in their first year. After three years or more on the job, happiness levels edge back up and interest levels increase. In fact, those with the greatest tenure (21 years or more) showed the highest level of interest in their jobs.

“Once they get past year one, the honeymoon appears to be over for many professionals,” said Paul McDonald, senior executive director of Robert Half. “After 12 months on the job, employees are expected to work more autonomously and take on added responsibility. At the same time, aspects of the job that at first seemed novel and interesting may lose their luster.”

He added that managers should be aware of this “second-year slowdown” and take proactive measures to keep employees engaged, such as providing stretch assignments and ensuring that workloads are manageable.

“By keeping an eye on it, companies can help minimize the risk of losing productive staff members who have already been through a learning curve,” McDonald said.

The study does indicate, however, that employees realize at least a portion of responsibility for happiness lies within their own hands. While managers can take steps to create a happier work environment, when asked who’s responsible for keeping spirits high on the job, 25 percent of professionals said it was their responsibility alone. Another 5 percent said it was all in their firm’s hands. The majority of respondents – 70 percent – cited a combination of the two.

Robert Half suggests several tips professionals can use to maintain their career spark over time, including:

• Find your passion by tapping into your firm’s higher purpose.
• Proactively seek out challenging new assignments.
• Ask for a raise, if warranted, as you take on more responsibility.

How to Avoid Busy Season Burnout

But in the unique bubble that is the accounting profession, where grueling deadline pressure and sustained long hours can dampen the zeal of second-year CPAs and partners alike, professionals and firms need to take additional steps to avoid busy season burnout and cultivate continued happiness year-round.

At least part of the busy season solution, McDonald said, lies in adopting the right mindset.

“Though easier said than done, accounting professionals should approach each busy season as a new busy season; each year as a new year. No two tax seasons are the same, for example, and the accounting profession is changing fast and constantly, bringing new challenges and opportunities,” he said.

McDonald offers these four additional tips accounting professionals can use to maintain their spark throughout the years as they build tenure at their firm.

1. If you find yourself stuck at work, reflect back on why you went into public accounting. Focus on how you are helping clients be successful and growing your career.

2. Look for new challenges. For example, talk to your manager about working with clients in different industries or offering training to your colleagues. Find ways you can grow beyond the job description. Consider serving as a mentor, which will allow you to help a less-experienced colleague while gaining new insights and sharpening your leadership skills in the process. Or look into contributing bylines for accounting publications or blogs and presenting at industry events, which will enable you to expand your skills, network, and visibility.

3. Commit to continuous learning. In addition to preparing you for advanced positions, you’ll gain new perspectives, identify new challenges, and develop new ideas.

4. Have an outlet outside of the office, such as a hobby, volunteering, physical activity, or participation in a professional organization. This gives your mind a break from work and can help you recharge. Prioritize your time, including taking breaks at work, eating lunch somewhere other than your desk, and going on vacations. This is essential for avoiding burnout.

The Firm’s Role in Cultivating Happiness

Accounting firm leaders themselves, of course, also shoulder a large portion of the employee happiness equation, and with the accounting profession’s current talent shortage, those who refuse to make employee happiness a priority are setting themselves up for failure.

McDonald said there are several steps accounting firm leaders can take to help their employees maintain a positive work-life balance, offset busy season burnout, and increase employee happiness throughout the year.

1. Let staff know how much you value their work. Research from Robert Half and Happiness Works found feeling appreciated is the primary factor in whether accountants are happy in their jobs.

“Celebrate victories large and small – you don’t need to wait for the end of busy season. Employee birthdays and anniversaries, major work accomplishments, firm growth, and life milestones are all good reasons to celebrate. The recognition doesn’t necessarily need to be elaborate – it just needs to happen,” McDonald said. “Encourage staff to recognize their peers, too.”

2. Don’t let positions stagnate. Ensure your team members have new challenges and stretch assignments to pursue. Talk to them about their potential career path with your firm, including the steps they need to take to advance and specific ways you’ll help them achieve their goals. They’ll see you’re invested in their success and be motivated to grow professionally.

3. If you’re not sure whether your employees are happy in their jobs and have the resources and balance they need, ask them. Check in with staff regularly to understand their aspirations, challenges, and concerns.

4. Ensure the firm is working to enhance staff members’ work-life balance and reduce stress for employees. Robert Half, for example, is seeing an increasing number of firms offering job-sharing arrangements, flexible schedules, and additional vacation time.

5. Don’t be afraid to get creative to help your team. For example, if possible during busy season, set aside occasional Saturdays as work-free. Consider a day a week when meetings, excluding with clients, are prohibited. Go off-site for team-building activities, and look for group philanthropic opportunities.

6. Ensure you have proper staffing levels to limit employees’ stress and help them achieve work-life balance. Move quickly to fill open positions, and bring in interim professionals to assist during periods of heavy workloads.

7. Never underestimate the power of the end-of-busy-season party. Employees and their significant others truly look forward to this event because it provides a sense of much-needed recognition, as well as a sense of completion to another long busy season.

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Here is a description of the guide from Accounting Principles website, "This valuable tool provides you with the most up-to-date accounting and finance salaries for your local job market and around the country. It also features the latest job descriptions and industry insights from the experts in accounting and finance staffing. It’s everything you need to successfully hire and retain the very best number-crunching professionals."

Accountants Predicted to Make More Money in 2017

The guide, released on Sept. 6, also indicates that several types of finance positions, including accounting and auditing, are expected to outpace overall occupations in job growth and pay by 2024. Citing job numbers from the US Bureau of Labor Statistics (BLS), the guide indicates that financial analysts, financial examiners, accountants and auditors, and financial planners (described as personal financial advisers by the BLS) show the strongest growth.

The guide breaks down the jobs numbers by several categories from the bureau’s 2016-17 occupational outlook. The category of business and financial professionals is the first. The BLS indicates that while jobs within this category are expected to keep pace with the 8 percent expected growth of all occupations by 2024, the median annual wage in May 2015 of $65,710 far exceeded the median $36,200 for all occupations.

And within that big category are several subsets of finance positions that are expected to do quite well. Here’s a closer look:

Accountants and Auditors

“A stronger regulatory environment is driving the demand for more accountants and auditors,” the BLS states.The 1.33 million accountants and auditors in 2014 are expected to grow 11 percent by 2024, to 1.47 million. The median pay in 2015 was $67,190.

Financial Examiners

An expected 10 percent growth by 2024 will add 3,700 jobs to the 38,200 as of 2014. Median pay in 2015 was $78,010.

Financial Analyst

The 277,600 in 2014 are expected to see 32,300 (12 percent growth) additional colleagues by 2024. Median pay in 2015 was $80,310.

Financial Planners/Personal Financial Advisers

The BLS describes this group as those advising on investments, insurance, mortgages, college savings, estate planning, taxes, and retirement. With 249,400 in 2014, the group is expected to grow 30 percent by 2024. Median pay in 2015 was $89,160.

The growth in these categories means that competition for jobs will become more fierce. “Candidates, especially those with specialized skills, can pick and choose their jobs,” Accounting Principals President David Alexander said in a foreword to the guide. “Because of this, it’s now more important than ever for employers to offer quite a bit in order to hire and retain top talent.”

You can get your free copy of Reality Check here.

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Today we are taking a trip around the information highway and sharing below some of what we consider the best accounting advice and news for July. Read, learn and enjoy, and please share!

July Web Roundup of the Best Accounting Advice and News

US News Career Section has a great article on how to get a job as an accountant, with overviews of the accounting field, the pay and even stress level of the job.

From the blog of CPAs Nietzke & Faupel here is a very informative post on what to do tax wise if you are married to a non-US citizen. This will be helpful to people on a personal finance level or for the accountants taking care of their books.

The Progressive Accountant has this helpful article on how to acquire new clients in the summer. On that page you will also find a free e-book to download, For Accountants, Growth Opportunities Outweigh Challenges.

Janet Novack, Forbes Staff Writer and D.C. Bureau Chief for Forbes has written this very important article that all accountants and business taxpayers should be aware of, IRS Waging New Audit Campaigns Against Business Taxpayers.

Accounting Fly blog has this helpful article to take advantage of when you get ready to take your first or renewal CPA exam. Below is a section of the article for your convenience:

Practice with Task-Based Simulations

With this increased emphasis on TBSs, candidates should direct a significant portion of their study time toward comprehending and acclimating to this specific type of question. The DRS has its own unique qualities that you can learn about in our CPA Exam DRS video series. You can also use the largest CPA Exam test bank found in Gleim CPA Review Systems to practice completing Task-Based Simulations. To ensure that you have a full understanding not only of the process of answering a TBS but also the content tested on TBSs, Gleim includes detailed answer explanations for each TBS tab."

That is our roundup from the web for today. Have a safe and happy day.

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“The firm model is based on a 60-plus-year-old premise, and technology is taking us in completely different directions,” AICPA Vice President–Firm Services & Global Alliances Mark Koziel, CPA, CGMA, said in a recent interview.

Firms are using technology in innovative ways and taking advantage of opportunities to specialize in areas requiring specific expertise. Meanwhile, many small firms with aging owners are trying to figure out how they are going to transition their practices.

During a presentation Tuesday at the AICPA spring Council meeting in New Orleans, Koziel described the changes firms are experiencing and provided a road map for how they can remain relevant in the future.

The AICPA Private Companies Practice Section (PCPS) has created a “Firm inMotion” toolkit that expands upon the CPA Horizons 2025 Report and provides the “how”—how firms can transition to being a high-performing firm of the future. The toolkit addresses firm structure and strategy, technology, clients and relationship building, and staff development. A fifth section of the toolkit that remains under development addresses globalization.

In developing the toolkit, a PCPS task force asked practitioners what they wanted firms to look like in the future. The task force developed a “transition continuum” and checklist for firms as they consider how they need to evolve to be successful in the future.

The tool is based on the premise that making the transition to a high-performing firm of the future doesn’t have to be an overwhelming ordeal. Many firms are already moving forward without realizing their progress, so understanding where you are in the process can help you move forward. One way to get started is to look closely at three primary areas of your firm and where each falls on the continuum.

Transition Continuum for Accounting Firms and Checklist

Strategy: We have developed a strategy or plan to move our firm into the future.

Action: Our practice has put a transition plan into action.

Focus: We focus on carrying out the plan each day, not just when it’s convenient. We track metrics and reward success.

The transition continuum and checklist provide best practices that firms can follow in the areas of culture, clients, and talent. Under “culture,” the checklist addresses:

• Challenge your firm model. Analyze the firm’s partnership agreements and governance to make sure they make sense for the future.
• Be flexible. Adapting to the changing needs of the workforce can strengthen the staff’s loyalty.
• Commit to a dynamic workplace culture. Team members can be empowered to make decisions, required to exercise discipline, and rewarded for delivering strong results.
• Focus on value. This could include a move away from billable hours.
• Embrace innovation and change. Developing new ideas can improve processes and employee engagement.

The checklist items under “talent” are:

• Rethink your firm’s career track. It may be more of a lattice than a ladder, and the pyramid model may not work anymore.
• Develop an inclusive culture. This includes both diversity and a transparency with all staff members in the firm so that everyone will understand decisions.
• Embrace generational differences. Firms can use the unique talents of each generation to their advantage.
• Embrace training and coaching. Talent should be educated with acumen and leadership and coached for succession.
• Recruit with intention. Firms must have a recruiting strategy to match talent with firm needs. Strategies include providing internships or recruiting through social media and virtual career fairs.

“Clients” is the area with the most checklist items:

• Revisit service offerings. Assessing the effects of technology is important. “If tax prep is being disintermediated, what am I going to do if I’m the tax-only shop?” Koziel said. “Well, I can do tax planning, tax consulting, get into wealth management. Not that I have to hold assets, but I definitely have to look at my tax clients differently.”
• Reignite relationships. Relationships provide clients with value that technology alone cannot offer. Networking goals should be defined for everybody in the firm, focusing on the relationship with the client.
• Manage expectations. Being deliberate in communications with clients and your team aids in client service and in turn builds trust with clients.
• Be deliberate with technology solutions. Aligning technology with strategy can increase efficiency and aid in client retention.
• Maximize social media benefits. Younger staffers especially may be adept at using social media to publicize the firm and follow clients.
• Form alliances. A tax-only practice with a client that just reached 100 participants in its employee benefits plan may want to get another firm to do the EBP audit. And small firms have the opportunity to join international associations, as large firms have done.
• Capitalize on your differences. Firms can articulate their value and confidently capitalize on their specialties and strengths.
• Be purposeful when selecting and evaluating clients. Firms must choose carefully who they serve, with a laser focus on which clients their particular firm is best and brightest for.
• Think globally. Advances in technology, social media, and the ease of travel have made the world a more global arena.

“In each of these areas, you challenge yourself,” Koziel said. “It doesn’t matter if you’re a sole practitioner, small firm, medium firm, large firm. Every firm has a capability to do that.”

Journal of Accountancy, 2016. 

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Testing Higher-Order Skills Will Become a Bigger Focus in 2017

The Journal of Accountancy has an article we feel all CPAs or those about to take their CPA exam should read. The full article can be found here, but below is the article introduction and a few of the major CPA exam issues it covers:

"As the business environment has changed, a shift has occurred in the type of work newly licensed CPAs perform.Technical proficiency of accounting, auditing, and tax concepts remains important. Following the AICPA Examinations team's most recent practice analysis, feedback from the profession indicated that the Uniform CPA Examination should evolve so that it will continue to measure the knowledge and skills a newly licensed CPA uses on the job.

As a result, the CPA exam's historical assessment of remembering and understanding and application skills is being modified, with an increasing emphasis on higher-order analysis and evaluation skills. In April, the AICPA announced the details of the updated CPA exam design, which will include assessment of those higher-level skills (see the chart, "New Focus for the CPA Exam," for a comparison of how the questions will be distributed on the next exam).

The next CPA exam will debut in April 2017 in its first major update since 2011.

"Remembering and understanding certain fact patterns isn't enough," said Michael Decker, AICPA vice president—Examinations. "Outsourcing and technology have dramatically impacted the work that newly licensed CPAs undertake earlier in their careers. Newly licensed CPAs have to be able to assess situations and apply professional judgment. So it's not just being book-smart, but the young CPA's ability to apply that knowledge in completing tasks they will encounter as a newly licensed CPA."

In the article you will also read:

Why the Exam is Changing

What's New

New Blueprints for Preparation

Score Results

Additional Future Changes

New Type of Question Debuts

At the end of the article are some very helpful videos concerning the CPA exam you also might want to watch. With all of this information, anyone about to take their CPA exam should be more than prepared to ace it.

The post What Will be Tested on the Next CPA Exam? appeared first on MoneyThumb.

Account reconciliation is an important task for accountants. These six best practices make it easier to do reconciliations correctly:

1. Set a definite standard of operation--A single best practice--including policies, processes and templates--should be set for your firm when it comes to account reconciliation and the process should be the same for all parties involved.
2. Prioritize accounts by risk ranking--Clients' accountants should be prioritized according to risk, (or need). For instance, you can rank your accounts by how often they must be reconciled, or maybe it is easier to rank them by the due date of the reconciliation. This is simply all about organization to keep things running smoothly.
3. Avoid Perfectionism--Not every account can be reconciled to the penny. A common "quick win" improvement is to set tolerances and thresholds across the organization. Rather than wasting time attempting to reconcile low dollar values, team members should work on other accounts or activities.
4. Monitor the process. A team would be lost without its head coach keeping everybody on the same page. The same can be said about a reconciliation process without a monitoring lead. Contrary to popular belief, this person does not have to be management, and the role is often a good way to develop up-and-comers in the organization. The main duties of the monitoring lead include tracking the completion status of all reconciliations, making sure the reconciliations are finished on time, and following up on incomplete or late reconciliations.
5. Use metrics to drive improvement. Finance leadership should use metrics to measure performance and improve the reconciliation process. Common metrics that should be reviewed regularly include overdue reconciliations, material reconciling items, and completeness by person or department. Based on these metrics, leadership can adjust the process if needed (e.g., reallocate reconciliations among team members, change due dates, etc.).
6. Use software to drive the process. Technology is important in the account reconciliation space. Companies have developed software to enable a best practice account reconciliation process. The key word is "enable," as any technology implementation should be driven by related process design changes. Key features to look for in a tool include real-time dashboards, system-certification features, automated balance interfaces, and automated notifications to users.

By following these best practices, your accounting firm should be able to handle each clients' reconciliation needs with confidence, promptness and accuracy. If you are an accountant, bookkeeper or CPA and have other suggestions to add for best practices of client accountant reconciliation, by all means leave a comment below and/or share this helpful post with your fellow accountants on your social media pages.

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As an Accountant or a CPA, can you establish a reputation within a specific profession?Our opinion is that doing so is very likely. After all, there are plenty of people who do the same job. They are unique because they socialize together, hold each other accountable, settle disputes away from public scrutiny, and often ask for referrals when seeking professional services.

Here are nine ways to proceed to build your clientele within a specific profession:

1. Choose the profession and get one client first.  As an example throughout this article, let's use teachers or police officers as your target client. Find just one person in the profession and do a great job for them. Always explain how you are helping so they understand your value.

2. Learn about their profession. What are the issues unique to their field? For police and teachers, it might be understanding early retirement ages and the prospect of second careers. Your client(s) will gladly explain.

3. Coach your clients. You’ve studied the field and understand the issues. You would like to add more clients from their field. Who do they know facing similar issues? Can they explain how you’ve helped them? Provide introductions?

4. Socialize with them. You’ve heard about “cop bars” on TV. Teachers also normally find a way to gather together. Frequent the right places. Your client can help. Be yourself. You will likely be absorbed into the group. Accounting is a prestigious profession. People want to know you.

5. Those you know. The average American knows 600 people, according to the New York Times. You have circles of friends from the gym, house of worship, country club, and your child’s school. Which ones are teachers or police officers? Get to know them a little better, at least well enough for them to ask, “What do you do?”

6. Those you don’t know. Most major cities have professional associations. It’s likely you belong to one for accounting professionals. Do some Google research and build a list of professional teacher or police officer societies in your area. Don’t assume there’s just one. Visit the membership section of the association’s website. Does it have associate memberships for people not employed in the field, but provide services used by those in your chosen niche? Often the answer is yes. You’ll likely see banks, insurance firms, and financial services firms listed.

7. Join and be visible. Joining isn’t likely to be cheap, but you are raising your visibility. Back to the website. Does the association have dinner speakers? What could you address? Volunteer – almost every organization needs worker bees.

8. Sell the firm. Tout the advantages and reputation of your firm, then position yourself as their contact within the firm who can bring the specialized help they may need for their field.

9. Publish. Specialty societies often have newsletters and magazines. They need relevant content, even better if it’s free. What can you provide? This builds name recognition within the profession.

People who have been in the same profession for a good amount of time, they are the ones who understand that profession backwards and forwards. Follow the steps above to become their go to person when it comes to their accounting needs.

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