President's commentary

It's the Marketplace, Stupid!

By George T. Foundotos, CPA

When all is said and done, it is truly the marketplace that is driving the Uniform Accountancy Act. To its credit, the AICPA saw early on what was happening and took the initiative. The Institute has the financial and human resources to commit. It joined with the National Association of State Boards of Accountancy and came out with the proposed model bill and set of regulations. The UAA addresses the issues facing our profession, which were first enunciated by the well-received report on assurance services from the special committee chaired by incoming AICPA Vice Chair (and NYSSCPA member) Bob Elliott.

I have traveled throughout the state three times to discuss the UAA. Many of you vented your emotions and asked thoughtful questions. And yes, some of you threw up your hands and assumed all was lost, in view of the recent penetration by corporate America into New York's accounting world. Well, all is not lost. Rather, all is just beginning.

I started when Number 2 pencils were the norm. There was the wet process for making copies and eating up your hands with the chemicals, and we either typed tax returns or used carbon paper. You do remember carbon paper? Well, the world has changed, and some of my staff have no idea what to do with a 13-column pad.

We must redefine ourselves in the context of today's marketplace requirements. The old-fashioned accountant is going the way of the GP family doctor, who has gone the way of the buggy whip maker. It is no longer our choice. It is the market's choice. The market wants a trusted professional who can help clients plan and project for a successful business.

History is nice, but it is history. Our attest work is becoming less important to our overall practice. Many of us avoid these engagements. And on top of this, about 40% of us (approximately 13,000 Society members) do not do any attest work at all, and are in industry, government, or education.

Is our turn to be re-engineered to fit into the modern world's requirements. So now, what are we to do? Well, we can be honest with ourselves. We can go through the emotional process, which is inevitable. But finally, we must begin thinking like CPAs ­ cold and objective. Our deliberate way of thinking is one of the traits we have used to arrive at our current positions with our clients. Why not use this attribute for ourselves? If we do, we will not fail to redefine ourselves.

Over the years, my educational and professional work experience earned me the title of Trusted Professional. I wish to create a new environment for my younger colleagues and for those who may enter the profession so that they can continue this legacy.

My greatest fear is not the UAA or that it will change our basic definition. It is that we are not giving our younger colleagues the opportunity to get broad-based exposure in an atmosphere of independence, competence, and integrity. This could deny them the title of Trusted Professional.

In other sections of this newspaper, you will find articles on the UAA, our members' reaction to it, and the process we are following. This member-focused and member-managed project is new for us. To those of you who have taken the time to participate, thank you. But the real test is yet to come. Once we have a position, we must begin the political phase, and there we all have to contribute. The more united we are, and the more involved we all are at the grass roots level, the more we will achieve. Think about it. Be well! *

George