I have found that accounting has become a bad word in business due to ENRON and other incidents. Why is that? I think it is because there simply aren't enough accountants. Born with a head for numbers, it is clear to me that any success I have with Marinella Elegant Jewelry is due my unique trait.
Positions and Responsibilities of the Management Accountant At MEJ, Inc. & beyond
Managerial Accounting Practices: Accounting in the Organization
MEJ's most sensitive business mission is keeping a chronicle of the status of its cash. For all organizations, big or small, the same is worry number one: and on list of importance, cash flow is the top item of concern. The breakdown is that when one speaks of Cash, the other listening considers Accounting as one and the same.
The new century unfolds, 2006 introduces “business” to “new roles” for accountants. For professional accounting practitioners, Job Designs have broadened in the structurally flattened organizations today. The stove pipe structured corporation of yesteryear hired accounting majors to control one pipe of production as the company grew. One finds accounting roles in departments such as Human Resources, Operations, Costing, Benefits, and Information Technology (IT) in the structure of business that correlates people and resources in “function and product.”
As captive accountant, as I will be responsible directly to MEJ's Antiques, I am not retained for objective analysis of the business at MEJ's, like external auditors are. However I will have fiduciary responsibility to engage in taxation, financial reporting, and forming financial ratios. These reports and ratios are used by every department to determine strengths, weaknesses, opportunities, and threats in the various business arenas of MEJ's processes.
New century innovation is challenging the business organizers to strike a delicate balance while putting into service high-tech change. Business units and their accountants collaborate as never before in changes that are dramatic enough to make a difference, but not so dramatic as to be disruptive or unrealistic ‘pie-in-the-sky’ solutions. Today accounting management is called on to partner up with operations, IT departments, enterprise acquisition, long-range product development, and business-driven solutions to improve process.
Auditing was first internalized in organizations, as they sought to control cash, and might have been left that way if there wasn’t constant grotesque abuse of the flow of cash. Therefore, government had to step in with legislation to ratify business accounting and auditing in legal terms. Government has the ultimate auditing rights. “According to the US Department of Labor, the employing of accountants and auditors is expected to grow faster than average for all occupations for the next seven years, or until 2014.” (US Department of Labor, 2006)
The sharp growth of accounting jobs appears to follow closely the rate of growth in IT jobs. This is mainly because “Largely, paperless audits are a fact of life. Meetings with administrators and boards of trustees used to be opportunities to build client relations, but the Internet and other technologies are reshaping the profession by reducing face-to-face contact with clients.” (Hayes, Michael, Apr2006)
Also, statement on auditing standards (SAS) is no longer a document that organizations can pass over. Ignorance of the audit rules can bring the Department of Labor in with authority to levy fines. “If a firm without sufficient knowledge fails to properly perform the audit, the DOL can assess fines on the plan administrator or sponsor.” (Hayes, Michael, Apr2006)
Pensions
MEJ's is additionally looking to protect itself and its workers by hiring accountants who can be part of the administration of benefits and pensions. This is a very hot subject today in the legislation and courts; maybe you have seen recent developments.
“Labor Department Announces Final Rules to Help Workers in Abandoned 401(k) Plans Washington, DC - The U.S. Department of Labor today announced the publication of final rules
and a class exemption that allow financial institutions to take responsibility for abandoned 401(k) plans and distribute the plans’ assets to covered workers and their families. The department estimates that 1,650 ‘401(k)’ plans, covering 33,000 workers, are abandoned by their sponsors each year.” (James, David, April 20, 2006)
Recent business closings and bankruptcy, such as the debacle of Enron, has fetched one of the most recent developments in government auditing controls, called the “employee benefit plan (EBP) audit.”
“Another plus is that an EBP niche can provide a firm with steady work from as early as March to October, depending on client extensions. Clients aren't fickle, either. A company's human resources, corporate accounting and treasury departments are the most affected during an EBP audit--so once launched, EBP practices remain relatively intact because companies don't like to disrupt those areas, Clifford says.” (Hayes, Michael, Apr2006)
In your letter you have curiosity about the newer roles of accountants in today’s business. It turns out that: “More than 75,000 EBP audits are conducted each year, and the market is good and growing.” (Hayes, Michael, Apr2006) At MEJ we will call upon those experts auditors of employee benefit plan, EBP, to objectify our “golden parachutes” and annuities.
The future is rosy for accountants: "Once the boom ends, the survivors will be those firms that operate their EBP practices efficiently and offer plan sponsors high-quality audits, reasonable fees and minimal disruption of their daily routines." (Hayes, Michael, Apr2006, Wasser, Diane M., CPA)
Accountant and Client
As MEJ's captive accountant, I am wise to maintain objectivity of client / accountant relationship. The managerial roles I will be asked will include several of our departments. So you see I have to sit in meetings with stockholders, as well as Departmental Managers.
The financial information I divulge is sometimes proprietary, and unsuitable to impart to stockholders. The manner in which I report cash flow is utmost to the stakeholders as well, who are anticipating growth and return on assets (ROA).
In accounting, there is no problem with treating all your co-workers as if they are clients. Minnihan agrees. "You get to know the ...professionals in your community," she says. "Do excellent work and they'll seek you out... Here are some practitioners' tips on how to do just that.” (Hayes, Michael, Apr2006)
- Provide a timeline that tells clients what you need and when
- Alert clients about compliance issues as soon as possible
- Ask record keepers for reports and access to databases that will assist in obtaining audit evidence
- Network with lawyers who specialize in what you are auditing and related benefit plan issues, and keep in touch with other CPAs
- Both are great [business] referral sources
- Stay on top of DOL requirements. The earlier you tell clients about coming changes, the easier they will find it to comply
- Solicit feedback from clients to learn where you can improve
- Develop your audit process from the client's perspective, not yours
- Perform annual internal inspections to get operational feedback
- Use good co-worker review reports as a detailer tool (Hayes, Michael, Apr2006)
References / Notes / Persistent Links / ResourcesARTHUR Andersen LLP Source: Not guilty after all Economists; 6/4/2005, Vol. 375 Issue 8429, p70-71, 2p, 1c Article REHNQUIST, William Full Text Word Count: 819 ISSN: 0013-0613 17233600 Business Source Elite
http://search.epnet.com/login.aspx?direct=true&db=bsh&an=17233600&loginpage=Login.asp
O' Sullivan, Kate, Uncle Sam Wants Accountants. CFO; Jul2005, Vol. 21 Issue 10, p16-16, 1/2p, 1c, Article, Accession Number: 17981850
http://search.epnet.com/login.aspx?direct=true&db=bsh&an=17981850&loginpage=Login.asp
Hayes, Michael, Best Practices in EBP Audits Journal of Accountancy, 00218448, Apr2006, Vol. 201, Issue 4 Database: Business Source Elite
James, David; Della, Gloria; Newsroom, April 20, 2006: 06-717-NAT: Department of Labor, Employee Benefits Security Administration, www.dol.gov/ebsa.U.S. Department of Labor, Frances Perkins Building, 200 Constitution Avenue, NW, Washington, DC 20210
Hayes, Michael, Apr2006 MINNIHAN, BERTHA, CPA; Mohler, Nixon & Williams Campbell, Calif. Journal of Accountancy, Apr2006, Vol. 201 Issue 4, p43, 5p.
Schmitt, Christopher H.; Barnett, Megan; Barnes, Julian E.; Roane, Kit R. Man on the Hot Seat. Source: U.S. News & World Report; 1/28/2002, Vol. 132 Issue 3, p20, 3p, 5c, 1bw Article Subject Terms: *BUSINESS enterprises *CHIEF financial officers
Sloan, Allan, Company/Entity: ENRON Corp. DUNS Number: 006970404 Ticker: ENE, FASTOW, Andrew, Full Text Word Count: 1862 ISSN: 0041-5537
Accession Number: 5917523 Business Source Elite
http://search.epnet.com/login.aspx?direct=true&db=bsh&an=5917523&loginpage=Login.asp
Allan, Sloan, HOW ARTHUR ANDERSEN BEGS FOR BUSINESS, Newsweek, 00289604, 3/18/2002, Vol. 139, Issue 11, Business Source Elite, Section: PERISCOPE
National Center for State Courts 300 Newport Avenue Williamsburg, VA 23185-4147 Phone (800) 616-6164 Fax (757) 564-2022 Questions or Comments - email knowledge@ncsc.dni.us
http://www.ncsconline.org/D_KIS/jobdeda/main.htm
Vaknin, Sam, PhD, the Inferno of the Finance Director. Write to me: palma@unet.com.mk or narcissisticabuse-owner@yahoogroups.com
Thorby, James1 jthorby@clarkslegal.com , Onus issue, Financial Management (Caspian Publishing); Jul/Aug2005, p61-62, 2p Article 522291 Consumer Lending, Abstract: Explains why a financial director should think very carefully before accepting a position on the board. Duties of directorship; Guidance for non-executive directors; Understanding of the company's rules on directors' interests and personal profit; Compliance with all of statutory obligations; Responsibility to keep up to date with the financial affairs of the company. Author Affiliations: 1Associate, Database: Business Source Elite
http://search.epnet.com/login.aspx?direct=true&db=bsh&an=18500589&loginpag
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