The Journal

of CPA Rookies ....

Tuesday, August 22, 2006

Number of CPAs at standstill even as Need grows

According to a recent NASBA report the number of CPAs is at a standstill - from 639,628 in 2003 to 648,520 in 2006. But with the recent changes in law through Sarbanes-Oxley Act the need is on a higher side. According to the Bureau of Labor Statistics, the growth for Accountants is expected to be 10-20% in the next 7 years.

According to Kaplan CPA Education, the pass rate has shown an increase of 10% from 2004. This can mainly be attributed to the Computer based examination pattern, a major shift from the paper-pencil module.

Kaplan states that the problem is that candidates are just not taking the exams due to a 60 hour work-schedule. The rigorous licensing exam requires a 250-400 hour commitment to succeed. They have come out with the following tips for employers who are incubating tomorrow's CPA test-takers :

Tip #1: Provide Support -- Host company-sponsored CPA review courses. If there is no time during the day, host the review courses at night or on weekends. Allow employees the time to study, and pay for his/her materials and exam fees.

Tip #2: Designate a Study Area -- Provide a quiet, distraction-free area, free of phones and talking. Candidates can "escape" to this area before and after work, weekends, and any time in-between.

Tip #3: Set Up a Mentoring Program -- Develop a mentoring program where a CPA alum works directly with a candidate to provide industry insight, tips and encouragement.

Tip #4: Develop a CPA Study Community -- Foster a "team effort" in passing the CPA exam. Provide free lunches or dinners at work for employees who want to utilize their meal times to get in extra study time. Keep the conference rooms available on weekends. And award incentives when specified study goals are achieved. It is often more effective to have periodic rewards for study time than it is to have one big reward after success has been attained.

Tip #5: Praise Him/Her on a Job Well Done -- Provide a congratulatory award, a day or two off, or a nice gift to candidates that pass the CPA Exam. They're on their way to further success -- hopefully with your company!

My take, nice tips indeed. That joining a CPA study community is a sure motivator by itself.With dedication and continued focus, the exam can surely be taken up with confidence.

Monday, August 21, 2006

Pension Protection Act 2006

The signing of Pension Protection Act (PPA) has brought in a lot of changes to the retirement plan provisions. Though 900 page act addresses various issues, the one that has caught attention from Corporate and the media alike is the automatic enrollment in a 401(k) Plan.

It is estimated that 1 in every 5 American retire without a retirement money. So the new law will prove to be a boon to those in the nature of procrastination. Also the lack of guidance from the employer on the subject so far lead to relegating the decision. After all it is human nature to decide by not deciding. Beginning next year, the employer can hire a 'fiduciary advisor' to assist the employees on investment.

The plan has also brought about a host of tax-related changes to the retirement funds like who can benefit from the roll-over of IRA and the inflation adjusted phase-out for IRA contribution.

Here is a link which enlists both the tax and non-tax provisions of the new Act. Understanding the New Tax Rule.......

Thursday, July 20, 2006

Philip Kotler

Philip Kotler,the Guru of Marketing in an exclusive responded to readers queries here

Wednesday, July 19, 2006

A little intro...

This is a simple blog put together by two rookie CPAs who just completed the exams. It will carry pretty much anything relevant to the topic. May be to start with we will put together somepoints on how to start the whole process. An indepth info on the subject can be found from the links provided under 'Useful Resources'.

Apart from these official sites, a good source will be the CPA net where you can meet the fellow exam-takers with loads of information to share.