Accounting education

Fidelity Investments has begun offering a Web-based retirement-planning tool, Fidelity Retirement Income Evaluator, aimed at helping advisors create and manage retirement plans for clients.

The Virginia Society of CPAs debuted an "Ask a CPA" e-mail program that promises free answers to personal financial questions within three business days.

Accounting firm Grant Thornton has launched a Financial Services Group in the United Kingdom that combines its old Financial Markets Group with the financial services practice it acquired from its merger with RSM Robson Rhodes in the U.K.

CEOs of Fortune 100 companies are receiving increasingly valuable financial planning perks, according to a new study.

Accounting firm Aronson & Co. has launched a video contest to attract accounting and finance students with a prize of a $2,500 "professional makeover" that includes services such as clothing consultations and resume preparation help.

Doris Rubenstein is the Principal Consultant of PDP Services, based in Minneapolis, and has over three decades of experience in the field of philanthropy. Her book, The Good Corporate Citizen: A Practical Guide (John Wiley & Sons, 2004), is a landmark work in addressing the complexities of planning and administration of charitable giving and volunteer programs for business. She is a member of the Philanthropic Advisors Network and pays dues to the National Committee on Planned Giving (NCPG) which provides both educational programming and ethical standards for those who work in this field. “Those who belong to the NCPG know that one of their major themes is “Leave a Legacy,” she says. “The idea is that those who make bequests and other deferred gifts can make a long-term impact not only on the beneficiary organization, but on their descendents as well. This legacy is supposed to be a point of both pride and unity for their family.” She said it was surprising then to read a report conducted by the Indiana University Center on Philanthropy for the Bank of America, Bank of America High-Net-Worth Philanthropy Study,which seemsto refute the whole legacy concept that NCPG has been promoting for nearly two decades: For 86.3 percent of respondents, “giving back” is more important than “leaving a legacy.” In fact, only 26.1 percent of respondents cited “leaving a legacy” as a motivator for their philanthropy. Rubenstein points out that there is only a very small group of mega-wealthy individuals who inherited their money. “Much of their wealth is measured in what they control through past legacies deposited in family foundations. Members of the Rockefeller and Ford families are still intimately involved in the policies of the foundations that bear their names.” In effect, she notes, the majority of high-net-worth persons are self-made. “They worked hard to make their money, and they appreciate the institutions that helped them along the way. Indeed, the report shows that entrepreneurs are the most generous donors.” She feels that as an accountant, the principal concern for the client is taxes. But, are taxes the principal concern of the client when deciding to make a major gift? She says that many in the nonprofit sector have been deeply concerned about the impact of the proposed estate-tax repeal on giving. “Evidently, high-net worth donors do not share this concern since 56.1 percent responded that their giving would remain the same regardless of the existence or non-existence of an estate tax. Even the deductibility of charitable gifts is not a major factor in the mind of 51.7 percent of these wealthy donors.” She adds that two factors seem to make the difference in the decision of high-net-worth individuals to make big donations: Being asked, and their emotional connection to the charity. However, the survey showed an amazing correlation between the person’s volunteer hours and the dollars they donated to the same charity: $620 dollars were donated per hour for those volunteering up to 50 hours per year; the figure jumps to $927 at 100 hours of volunteer time. Still, it’s readily admitted that volunteering is the best way to make that emotional connection by developing an experience of trust, admiration, and respect for the organization itself. It allows the individual to see the inner operations and feel the spirit of the organization. Rubenstein believes that all of this still does not deny the reality that some wealthy persons do want to leave a legacy of some sort. “This was cited as a motivator by those 26.1 percent of the Bank of America study. The forms a legacy can take are still numerous: The family name on a summer camp cabin, an endowed scholarship fund at their alma mater, a family foundation that will continue to reflect long-held values.” So, we come down to the question of how and why the accountant’s high-net-worth clients give to charities? Do they compare to the profile drawn in the Bank of America report? Remember, very few of their giving decisions are made on the basis of their tax deductibility. As Rubenstein points out, “It’s your job to remind them of this part of their finances, but the decision is ultimately in their hands.”

More than half of undergraduate accounting students admitted to cheating, a proportion roughly comparable to that of other business majors, according to a newly released academic study.

Virginia CPA firm Yount, Hyde & Barbour has established a $2,500 annual scholarship for accounting students through the Virginia Society of CPAs Educational Foundation, making a $50,000 gift to the foundation so the scholarship can launch next year.

The Institute of Internal Auditors Research Foundation has introduced an internal auditing textbook that promises to unite theory with practical knowledge to give students a more realistic look at the profession.

Kaplan CPA Review has introduced online review courses for CPA candidates.

It will probably come as no great surprise that there are plenty of retired people living in Florida and that many professional services firms cater to the elderly. Clearly, a trusted CPA firm is certainly a good place to turn to for a financial professional to handle eldercare needs. Add to this the fact that the U.S. Census Bureau says that within three years, approximately 40 million people in this country will be 65 years or older. What’s rather alarming is that 30 percent of all known cases of fraud are committed against the elderly; that’s considered twice the normal rate. So, what can be done? Who to trust? No one, of course, has the patent on catering to the elderly, and there are plenty of top notch CPA/Financial Planning firms doing it. However, one came to mind recently when this firm purposely took the concept to the next level and developed what it called FamilyFirst Elder Planning Services. The idea was to provide seniors and their families with a safety net. The range was a wide one from providing financial expertise and professional assistance, to safety and well being, to even hurricane preparation. Friedman, Cohen, Taubman & Company in Plantation, Florida, has a special division assists its elderly clients in continuing to live an independent lifestyle by catering to their individual needs and keeping their families informed. The firm says that FamilyFirst can benefit everyone who has time constraints but who want to help a loved one in need to maximize and maintain their independence. In short, they look to relieve the pressures of managing one’s own financial affairs, or help that loved one make the most of their resources and financial choices. “We understand the pressures that families encounter when having to make financial choices for an aging loved one,” says Tracey Kinker-Gebert, CPA Manager of the firm’s Elder Planning Services. “We have devised this program that not only helps relieve the burdens of managing financial affairs, but keeps a close eye on the client’s routine activities and overall well-being. This is extremely comforting for relatives who may not live close to their elderly family members.” Kinker-Gebert, who was recently elected as the Chair for 2007-2008 Elder Care Committee for the Florida Institute of Certified Public Accountants, developed the FamilyFirst program. “As our client base aged, our experience and love for working with the aged along with the opportunities for elder financial exploitation, the need for such services became apparent.” The firm’s FamilyFirst Elder Planning Services assists its elderly clients in making the best financial decisions in their retirement years. From guardianship reporting to routine financial, accounting and tax transactions, the program acts as a safety net for seniors and their families. This program allows clients to integrate FamilyFirst’s custom services into every aspect of their life, meeting their initial needs and modifying the plan as their needs change. The firm says that FamilyFirst provides periodic reports to family members regarding their loved one’s financial activities, offers to coordinate home inspections and home maintenance and also creates in-depth weather protection plans. Its advisors also help coordinate with geriatric care managers, home healthcare providers, investment advisors, attorneys and other professionals to ensure the clients are receiving the proper protection and care.

The National Association of Black Accountants and the Howard University School of Business Center for Accounting Education are launching an effort to encourage a greater number of black CPAs.

The Houston Business & Tax Law Journal plans to hold a symposium in October on the patenting of tax strategies, an idea that has already generated some controversy among patent defenders and critics.

The American Institute of CPAs presented awards to 10 budding CPAs who achieved the highest cumulative scores last year on the four sections of the Uniform CPA Examination.

The government is frustrated over seniors' difficulties with the expanded Medicare menu. Evidently, having so many choices has led to confusion, rather than informed decisions.Maybe they should seek advice from corporate executives, who face a similar dilemma deciphering their compensation alternatives. While highly paid employees may appear to suffer from nothing worse than an abundance of riches, many are wasting money through inaction or ill-advised choices. The effects of these decisions on their retirement plans can be significant. It's an opportunity for wealth advisors to serve a unique market niche.

SEC ADOPTS FRAUD MEASUREThe Securities and Exchange Commission voted to adopt a sweeping anti-fraud rule that targets money managers who deliberately mislead investors.

Microsoft has launched Microsoft Money Plus, an update to its personal financial software targeted at consumers, entrepreneurs and small businesses.

The future of the accounting profession will be largely determined by its response to escalating talent shortages and other challenges of the post-regulatory-reform era, says a distinguished group of leaders in this field. The Robert Half International Financial Leadership Council recently met and recommended a number of strategies for addressing these issues. It’s all set forth in a new report, Charting the Future of Accounting, Finance and Audit Professions. The Council, which represents a diverse range of leaders from the corporate world, public accounting firms, industry associations, and top accounting universities in the U.S. and Canada, discussed the impact of changing workforce demographics on today’s accounting landscape and the recruitment and retention challenges associated with these shifts. Some of the key findings and recommended solutions are:

Two accounting students have launched a used books site to combat the rising prices of textbooks.

Albridge Solutions has added mutual fund and exchange-traded fund research to its Albridge Wealth Reporting software.