LEARN TO MAKE A DIFFERENCE

Claremont what we offer

McKenna • Generous nancial aid: Need-blind • Academic exibility: Students are College admissions policy ensures that every encouraged to combine their study in student admitted to CMC only pays what with other disciplines such as Data o ers a unique opportunity their family can a ord. Science, Finance, Psychology, and even Dance! to study Accounting and • Access: Small class sizes and an 8:1 • Success and job placements: Over 90% within a liberal arts student to faculty ratio ensure you’ll be of students complete their degree within ve setting. CMC is consistently more than a number to professors. years. Pass rates for the CPA exam are among Hands-on learning means 79% of CMC the highest in the nation and fewer than 5% of ranked among the top ten seniors work on research with faculty; 90% recent graduates were seeking employment at liberal arts colleges in the participate in our internship program. six months after graduation. nation—and with its emphasis on leadership, one of every nine CMC alumni is a partner, CEO, owner, or president.

The Accounting program at Claremont McKenna College is committed to broad educational goals and provides opportunities for students to succeed not only in Accounting, but in a variety of professions, including consulting and nancial services.

Robert Day School of Economics and Finance Claremont McKenna College Claremont, California 909.607.3377 | [email protected] Since 1985 Thinking Since 1985 LEARN TO COVER STORY 12 COVERMeet STORYthe Future : Five Essential 6 LookQualities Up -the You Industry have aExpects bright career ahead. MAKE A FutureBy Michael F.Business Peters, PhD, Chair, Leader, Accounting &Meet Information Advanced Systems and the Alvin of a career in A. Clay Professor of Accounting, Villanova School of Business Accounting DIFFERENCE STUDENT OUTLOOK - PEER REVIEWED 4 EDITORSHow flipped NOTE courses can prepare you for the 4 Accounting:accounting profession The Field of Opportunities accounting? ByBy Douglas Matt Bjornsen, K Barney, Assistant PhD, IndianaProfessor University – Accounting, SE and Department Chairman, of New Accounting, Accountant Page 6 EditorialFinance, Boardand Economics, College of Business and Technology, University of Page 10 Nebraska – Kearney

PROFESSIONALPROFESSIONAL OUTLOOKOUTLOOK We’ve got your 10 6 Exploring10 Tips for the Young Career Accounting of Entertainment Professionals in the ProductionPandemic Environment Accounting ByBy Alicia Tim V. Washington, Eaton, EY Teaching CPA Scholar, Professor of Accountancy, University and Jake Swyers, EY Student Scholar, Graduate Student, Miami University Claremont what we offer PROFESSIONAL PROFILE back. 12 APROFESSIONAL Real-Life OUTLOOK ByFree Scott CPAP. McHone, Exam CPA, PhDResources McKenna • Generous nancial aid: Need-blind • Academic exibility: Students are 16 College admissions policy ensures that every encouraged to combine their study in By Stephanie Ng, Executive Committee Member, New Sight Eye Care student admitted to CMC only pays what Accounting with other disciplines such as Data PROFESSIONAL OUTLOOK o ers a unique opportunity their family can a ord. Science, Finance, Psychology, and even Dance! WORDS OF WISDOM to study Accounting and 1718 AchievingReading Between Professional the Lines: Success What in they Accounting really • Access: Small class sizes and an 8:1 • Success and job placements: Over 90% By George D. Schmelze, Professor, Missouri State University and Thomas E. Economics Getwithin astarted liberal arts todaystudent as to faculty a Studentratio ensure you’ll be of students complete their degree within ve Buttross,mean Associatewhen they Professor say... of Accounting, Penn State University setting. CMC is consistently more than a number to professors. years. Pass rates for the CPA exam are among Page 16 Affiliate Member.Hands-on learning means 79% of CMC the highest in the nation and fewer than 5% of Page 12 ranked among the top ten seniors work on research with faculty; 90% recent graduates were seeking employment at liberal arts colleges in the participate in our internship program. six months after graduation. nation—andCPAs with drive its emphasis the success of many companies. And the global financial system. on leadership,Whether one ofyou’re every looking for a great salary, job security or travel opportunities, ® nine CMCbecoming alumni is a apartner, CPA can help make all that a reality. The AICPA is here to CEO, owner,help or you president become. a CPA — with scholarships, mentoring, support and the latest certificate programs, including blockchain, data analytics and cybersecurity. Get ready to join the AICPA as a Student Affiliate Member for FREE when you begin your college journey. Just visit . The Accounting program at Claremont McKennaThisWayToCPA.com/JumpStart College is committed to broad educational goals and provides opportunities for students to succeed not only in Accounting, but in a variety of professions, including consulting and nancial services.

Robert Day School of Economics and Finance Claremont McKenna College Claremont, California © 2020 Association of International Certified Professional . All rights reserved. 1905-37634 909.607.3377 | [email protected] Page 18 Page 17

NA 785 - China.indd 3 10/20/20 5:37 PM A Note From The Editor

Editor & Publisher Steven N. Polydoris Accounting: The Field Production Debbie Maier, Mark Schmidt & Margaret Stack Graphic Design of Opportunities Michael Thomas Editorial Cathy Demetropoulos Kari Polydoris

Contact Us Advertising [email protected] By Douglas K. Barney Editorial Chairman – Editorial Board & Peer Review Process [email protected] Indiana University SE Subscriptions [email protected]

Editorial Advisors elcome to the New Ac- Douglas K. Barney countant – High School Perhaps you want Chairman - Editorial Board & Peer Review Edition!! Join the legion to help others at work and Process - Indiana University SE of students who under- “make a difference in the Michael D. Akers standW the opportunities an accounting degree Marquette University offers! An accounting degree is an exciting world. A quick internet Barry C. Broden entryway into teaching careers, corporate search shows hundreds of Barney School of Business, University of Hartford management, investigative work, govern- Mike Bitter openings for accountants Stetson University ment work, and so much more! Contrary to at Habitat for Humanity, popular belief, accountants don’t sit in lonely, Tom Buttross Penn State Harrisburg darkened, cubicles wearing pin stripe suits United Way, Salvation Army, and more across the U.S. Lynn Clements hunched over examining detailed ac- Florida Southern College counts. The advent of computers, advanced D. Larry Crumbley software, and increased use of sophisticated Louisiana State University technology has removed accountants from Tonya Flesher their former shackles! Now accountants can some accountants establish their own prac- University of Mississippi use data analytics to understand financial tices and offer their services to local” compa- Louis LeGuyader trends. They certify Academy Award winners, nies. Those accountants are entrepreneurs! Southeastern Louisiana University investigate , and even make arrests! Ac- Perhaps you want to help others at Frank M. Messina University of Alabama at (UAB) countants can verify in specialized work and make a difference in the world. Then a non- organization might be Steven E. Orpurt fields working with pizza dough, Jell-O, and W.P. Carey School of Business anything you can imagine! There are endless for you! A quick internet search shows Arizona State University opportunities; accountants are in demand! hundreds of openings for accountants at Kent Swift Who needs an accountant? An easier Habitat for Humanity, United Way, Sal- University of Montana question to answer is ‘Who doesn’t need an vation Army, and more across the U.S. As Dan Swenson Arizona State University accountant?’ Practically every business needs an accountant for these organizations, you can earn a salary while making the world a Dan Tschopp an accountant, and often, multiple accoun- St. Leo University tants. This not only includes large corpora- better place! Or perhaps you don’t wish to Alicia Washington tions (Amazon, Walmart), but also small work in the private sector at all! Virtually Steve Wells companies (locally owned repair shops and every government agency – federal, state, Western Kentucky University grocery stores). But there are even more in- and local - uses accountants. As a govern- www.NewAccountantUSA.com credible opportunities! Because many small ment accountant, you could have any of a High School Edition shops cannot afford an accountant full-time, Continued on Page 22 Copyright ©2021 by Real Estate News Corp. All rights reserved. 3525 W. Peterson Ave. 4 NEW ACCOUNTANT , Illinois 60659 Phone (773) 866-9900 • Fax (773) 866-9881

Student Outlook

New Accountants’ 11 Rules For Living... Here is a list of 11 things that many high school and college graduates did not learn in school.

Rule #1 Life is not fair; get used to it. Rule #5 Rule #8 Flipping burgers is not Rule #2 beneath your dignity. Your Your school may have done away with grandparents had a different winners and losers, but life has not. The world won’t care In some schools they have abolished about your self-esteem. word for burger flipping; they called it opportunity. failing grades; they’ll give you as many The world will expect you times as you want to get the right to accomplish something answer. This doesn’t bear the slightest BEFORE you feel good resemblance to ANYTHING in real life. about yourself. Rule #6 If you mess up, it’s not Rule #9 your parents’ fault, so Rule #3 don’t whine about your Life is not divided into semesters. You You will NOT make 40 mistakes, learn from them. don’t get summers off and very few thousand dollars a year employers are interested in helping you right out of high school. find yourself. Do that on your own time. You won’t be a vice president with a cell Rule #7 phone, until you earn Before you were born, your Rule #10 both. parents weren’t as boring as they are now. They got that way Television is NOT real life. In real from paying your bills, cleaning life, people actually have to leave the coffee shop and go to jobs. Rule #4 your clothes, and listening to you talk about how cool you are. So If you think your before you save the rainforest teacher is tough, wait from the parasites of your parents’ until you get a boss. He Rule #11 generation, try “delousing” the doesn’t have tenure. closet in your own room. Be nice to nerds. Chances are you’ll end up working for one. Excerpted from “Dumbing Down Our Kids: Why American Children Feel Good About Themselves But Can’t Read, Write or Add” by Charles J. Sykes.

NewAccountantUSA.com 5 Cover Story Future Business Leader, Meet Advanced Accounting. Learn how a high school advanced accounting course can give you an edge over your peers and prepare you for a successful career in any industry.

career in accounting is one of the most rewarding paths to pursue. This pathway to entre- preneurship gives you the op- YOUR COLLEGE . portunityA to be at the forefront of helping businesses, nonprofits, professional sports payday If you’re a high school senior who plans to major in teams, and individuals — like celebrities accounting and have been taught by a trained APBP teacher, — make sound financial and strategic de- * cisions. Accountants are in a unique posi- you may qualify to apply for a $1,000 scholarship. Visit tion to create, analyze, and interpret data StartHereGoPlaces.com/APBPscholarship to learn more. to assess and maintain the financial health of an organization or individual.

Since ancient Egypt, accountants Fueled by AICPA have and continue to be the key champi- ons of the decision-making process. But *Visit StartHereGoPlaces.com/APBPscholarship for a full list of requirements and deadlines to apply. many of the ways accountants operate and contribute have greatly changed. the logical connections between ideas, Problem-solving: It’s a guarantee that and detect inconsistencies and com- you’ll eventually be faced with a problem Preparing for tomorrow’s skill mon mistakes in reasoning. Developing in your career; some being more severe sets today critical thinking skills will allow you to or complex than others. It’s difficult to Today’s entry-level accountants face recognize connections and flaws when prep for every issue, but when it does expectations to do more, know more, and reviewing data. arise, you should know how to tackle the contribute right away — which is great situation at hand. This includes identi- news for you! Instead of just having the Decision-making: Every decision can fying and solving problems through cre- skills needed to analyze and interpret data, have positive and negative results that ative thinking, research, collaboration, accountants also need savvy business and impact the state of a company (imagine and decision-making skills. Using these communication skills to be successful. the video streaming world landscape if approaches will help you better compre- In a profession that is becoming the accountants for then movie rental gi- hend the problem and construct an ap- more tech dependent, the following skills ant Blockbuster had recommended pur- propriate solution. are needed to provide the human aspect chasing Netflix for $50 million in 2000). to interpret data. As an accountant, it will be your role Leadership: Leaders aren’t just some- to weave through the data and forecast one whom others follow. They exist to Critical thinking: Sometimes the easi- moves. Using both reasoning and intu- grow the company, get the most out est answers are not the best choices. ition to decide the best options available of their employees, and help grow the Possessing critical thinking skills will will be important. next generation of leaders. Being a great allow you to think deeper, understand leader means possessing the charisma,

6 NEW ACCOUNTANT discipline, knowledge, empathy, and self-confidence needed to rally employ- ees and make the tough decisions to en- WE KNOW YOU’RE AN . sure a company’s future. To be a CEO accounting whiz or CFO in the age of technology, hav- THESE COLLEGES AGREE. ing great leadership skills will ensure Taking an APBP advanced accounting course? You’re eligible to earn that you’ll help your employees adapt to college credit if you pass the APBP Qualifying Exam. Participating rapid change. universities (with more coming soon!) include: Learning and implementing these skills can take time, but it’s well worth Carlow University University of Kentucky putting it into practice while you’re still Fairleigh Dickinson University University of Massachusetts Lowell Kansas State University University of Pikeville in high school. However, exposure to N.C. State University University of Toledo these skills, alongside learning business Stetson University Western Kentucky University acumen and current accounting tech- University of the Cumberlands Western New England University University of Denver nologies, tends to not exist with tradi- tional high school accounting courses that teach basic accounting principles. ing course. You can earn college credit was developed by Dr. Dan Deines, CPA, To get proper exposure to the ac- that’s transferable to 13 universities (and a retired accounting professor at Kansas counting field in high school, take an counting) if you pass the APBP qualify- State University. advanced accounting course to help you ing exam. Plus, you can apply for the ex- The program goes beyond basic ac- gain a better insight into the industry clusive AICPA Foundation High School counting skills to push you to become and the confidence that this is the right Scholarship to pay for your studies. acquainted with both financial and man- path for you. Taking the APBP advanced - agerial accounting. By introducing these ing course allows you to understand the principles in high school, you can enter Curriculum that goes beyond ‘debits skill sets that you need to thrive in to- college with the confidence and knowl- and credits’ day’s accounting profession by integrat- edge needed to be successful during the High school is a time to go outside ing accounting knowledge, analytics, introductory accounting courses. your comfort zone and explore different and strategic decision-making. “I took a couple of AP courses in classes available to you. However, your By the time you complete the high school, but the advanced account- first experience with a specific subject course, you’ll have gained the confidence ing course felt more structured like a col- can sway how you view it as a career to pursue accounting in college and, lege class. I felt that course put me ahead, choice. If you have a great first classroom eventually, your career. as having the skills from taking the ad- experience with accounting, it can often vanced accounting class in high school go a long way toward determining if you Preparing for new experiences made my first accounting class in college want to enter the profession. For many high school students, the much easier than [it was for] those that This is why you need to expose your- college experience is a road paved with only had a basic accounting class,” Kristy self to a course that goes beyond “debits new opportunities, from meeting new Trupka, CPA, recalled when discussing and credits” and into higher-order skills, friends to finding the best places to eat her experiences after taking the course. like critical thinking, decision-making, on campus. However, one challenge that Since the APBP program focuses on problem-solving, and leadership — skills upcoming college students face is read- preparing students with accounting con- that accountants and CPAs need to justing coursework expectations. cepts taught in higher education, it’s no thrive in today’s profession. To help prepare for this change, surprise that students who take account- AICPA’s Accounting Program for students often elect to take college-level ing courses in college often find success by Building the Profession (APBP) is an ad- courses in high school to get a better helping to tutor their fellow classmates. vanced accounting course that teaches a glimpse of what will be expected. Tak- Therese Dukes, a business high higher-level accounting curriculum that ing an advanced accounting course, like school teacher in Independence, Ken- combines financial and managerial con- APBP, is the perfect opportunity to see tucky, shared how one of her former stu- cepts. It’s similar to what a college student what a college course is like — which is dents did just that. “During his first ac- would learn in an entry-level account- no surprise considering the curriculum counting class in college, my former stu-

6 NEW ACCOUNTANT NewAccountantUSA.com 7 Cover Story dent mentioned that his classmates were drowning and were not understanding the material. He became their tutor and helped those students pass the course. TAKE YOUR CLASSROOM The fact that he was well prepared, es- pecially since it was my first year teach- TO THE . ing the APBP program, speaks volumes next level about the curriculum.” Teachers: Get the knowledge and resources you need to One way the material is delivered elevate the future of the accounting profession. Visit is through case studies. The curriculum StartHereGoPlaces.com and gain access to: isn’t just lectures; it allows you to learn by role-playing through scenarios that accounting professionals often experi- Classroom APBP Bank On ence. And by taking part in these case simulations Training It Game studies, you’ll take away much more. “We participated in a project where we ran a company and we had to run I can pursue. I was a first-generation of the most prestigious companies and through transactions and produce finan- college student, and I didn’t know public accounting firms, and ultimately cial statements. There was a lot of time what I wanted to do. But taking this earn the coveted CPA license. management skills wrapped around it class really helped me figure out my It’s hard to know what your calling and I was able to learn how to process major in college.” is while you’re in high school, but the things and be self-driven to figure out Being prepared for the start of your APBP advanced accounting program answers on my own,” said Darien Stokes, professional journey also means having will give you a great opportunity to a former APBP student and current the tools needed understand your next explore whether accounting is a career Master of Accounting student at Kansas steps. AICPA’s StartHereGoPlaces.com for you. State University. provides resources for you to explore dif- “High school is a time to test things ferent careers within the profession, get a out. So why not look at accounting, get A true look inside the accounting snapshot of salaries accountants are mak- a taste for business, and look at all the career ing today, find the right college for you, options available? Because if you don’t, Taking an advanced accounting and understand the pathway to become there’s a chance you’ll regret it and miss course, like APBP, can not only prepare a CPA. out on your true calling,” Stokes said. you for college, but it can set you up for You can also put your accounting “I tried to diversify my classes the start of your professional journey. skills to the test by playing Bank On while in high school. That led me to One of the best ways the program does It on StartHereGoPlaces.com. Devel- the advanced accounting course and a this is by exposing students to the vast oped by students, for students, this career path that I would not have pur- number of career paths within account- interactive game will challenge you on sued if I wasn’t experimental in how I ing, whether it’s to solve mysteries as a accounting fundamentals, provide a chose classes.” forensic accountant, save the world as taste of real, working-world scenarios, Even if you don’t have the option an environmental compliance analyst, and reinforce learning concepts in the to take the APBP advanced account- or even travel the world as a CPA for an classroom. This game will test your wit, ing course in high school, pursuing an airline company. wisdom, and ambition. accounting career can take you far in For Trupka, taking the APBP course life and will provide the skills to be a allowed her to see all that accounting has Finding your calling successful business owner, run a For- to offer. The biggest testament to the APBP tune 500 company, or help a nonprofit “This class really introduced some advanced accounting program is that support local communities. With Start other career paths for me. I felt like this honors-level course inspires students Here, Go Places as a resource, you’ll feel the advanced accounting course really to pursue accounting as a career. Many confident to take the first step towards opened the door to public accounting, former students have since graduated this profession. To learn more, visit and some of the more complex careers with accounting degrees, work at some StartHereGoPlaces.com.

8 NEW ACCOUNTANT STUDY ACCOUNTING at Stetson University School of Business

WE OFFER • Incoming high school students a potential head start by providing college credit for the AICPA’s Accounting Program for Building the Profession (APBP) exam • One of only 188 accounting programs world-wide accredited by AACSB International • A “4+1 Program”: complete a BBA in Accounting and Master of Accountancy in five years • An entirely online Master of Accountancy program • A program ranked in the top 5% of U.S. medium-sized programs for CPA exam performance • A technology-infused curriculum, taught by mentoring faculty with significant work experience, advanced degrees and professional licenses • Experiential learning opportunities rooted in community engagement • Networking opportunities that result in employment offers from top accounting firms, corporations, not-for-profit organizations and governmental agencies

BBA Bachelor of Business MAcc 4+1 Administration in Master of Five-Year Accounting Accountancy Program

stetson.edu/accounting

[email protected] (386) 822-7100

School of Business

BUS Ad_New Accountant.indd 2 2/13/2020 11:27:39 AM Professional Outlook Exploring the Career of Entertainment Production Accounting

Behind the scenes of each movie, online series, and television show is a team of accountants who play vital roles in the Alicia Washington projects from start to finish. CPA

ost Americans devote a great amount of time to entertain- ment. There always seems Mto be a new “must see” series on Netflix about which someone is rav- ing. Each season, we wait to see the new episodes in the primetime lineups on our favorite networks. Every summer, we look forward to the new action blockbuster films. Behind the scenes of each movie, online series, and television show is a team of accountants who play vital roles in the projects from start to finish. These ac- countants are known as production ac- countants. I often watch the credits at the end of a show or movie then wonder what it is like to be a production accountant. I reached out to the production accountant beginning of its 5th season in 2013. She possess as you may encounter new people on one of my favorite television shows to graciously allowed me to garner input very often and there is a new script for each provide insight into the field of entertain- from her during a quiet moment on the episode. As an accounting clerk, you may ment production accounting. set while filming the 9th season of Mod- file or organize invoices. A background in Vicki Rocco (accountingchick.com) ern Family. and payroll are helpful has been an accountant in the entertain- for the payroll and assistant accountant ment industry since the late 1980s. Prior Roles & Responsibilities roles. Fast typing is also important as there to beginning a career in production ac- Possible accounting team members is a lot of data entry associated with in- counting, she worked at a business man- are accounting clerk, payroll accountant, voice payment, 1099s for hundreds of agement firm where she handled the -fi 1st assistant accountant, 2nd assistant ac- contractors, and payroll. Payroll is typi- nances of actors, producers, writers, and countant, and production accountant. cally run through software provided by a musicians. Rocco has been involved with Basic accounting knowledge is required payroll company, but gaining knowledge the financials for several productions in- for all roles. The accountants use software of union labor laws is a must. Recalling the cluding: Arrested Development, Britney specifically designed for the film industry. script is necessary when paying invoices. Spears Live: The Femme Fatale Tour, the The important characteristics in produc- Payments are needed for venues, catering, cult-classic Heathers, and Buffalo Bill. tion accounting are being personable, re- vendors, animal trainers, actors, and other Rocco has been the production accoun- liable, accurate, and organized. Having a various crew, cast, and specialists. Most tant on ABC’s Modern Family since the good memory is another valuable trait to payments are by check. The accounting

10 NEW ACCOUNTANT team is responsible for paying per diems, handle the financials for the production of She also adds, “Once you’re in, you’re or daily allowances, to members of the a pilot episode for a new series, servicing in.” If you continue to work hard, you crew. Per diems for filming one episode clients in a private practice, finding new will receive several referrals via word-of- of a show can be in the neighborhood of projects, or just enjoying the lull. mouth. After filming completes on one $100,000. Rocco prefers to pay the daily project, you may be extended an invita- allowances in as a convenience to Finding Opportunities tion to work on another project with the the payees, so going through the airport Rocco provided advice on finding producer or unit production manager. with large amounts of cash in her luggage opportunities within the entertainment Others have found success in reaching is normal for her. Cash handling and cash industry. She recommends contacting the out to accountants in the film industry management skills are necessary for a ca- film commission in your desired work via LinkedIn. Use your network in gen- reer in production accounting. area. Every state has a film commission eral. Referrals from other crew members and most major cities have their own web- are a method that Rocco uses to hire new Development sites. Areas with very active production accountants. Aside from freelance ac- The entire accounting team is respon- markets include , New York counting, all major networks and studios sible for developing and enforcing adher- City, and . If you have a primary employ accountants. Whichever method ence to the pattern budget at the beginning job, Rocco also recommends volunteering of communication you choose, I look for- of every project. The pattern budget is de- to help on a Saturday stating that volun- ward to seeing your name in the credits at rived from the salaries of actors, the teering can lead to a paying opportunity. the end of the film. of cameras, and the of actually filming and posting the project. For TV, the pattern is per episode. Producers, unit production managers, and accountants meet to settle on the pattern budget. For each episode, the accountant receives a copy of the script and reads it thoroughly looking for poten- tial . Departments submit their projected expenses for the episode. From there, the pattern budget will be adjusted accordingly for actor cameos, the cast in the actual episode, special items, and film- ing locations. For example, the script for several episodes of a show called for ducks to be a part of the story line. The ducks were written into the script to age over the episodes. The cost of the ducks and duck wranglers were included in an account and allocated over five episodes. At the end of the season, the goal is for the average episode cost to be less than or equal to the pattern budget.

Work-Life Balance If desired, production accounting can open a world of travel. Production accoun- tants have the opportunity to film on loca- tion in different countries. Rocco’s work has taken her to Germany, United King- dom, Australia, India, and Japan among many other destinations. The hours are flexible which allows time to create unique experiences. When working on a freelance basis, there can be downtime between re- curring projects. This time can be used to

NewAccountantUSA.com 11 Professional Outlook A Real-Life Forensic Accountant The recent $40 million plus movie about Christian Wolff in The Accountant is not so farfetched as it might seem. Played by Ben Affleck, Christian Wolff is called in to investigate the possible cooked books of a state-of-the-art robotics company.

By Scott P. McHone, CPA, PhD

n fact, the scheme at the robotics company was to engage in “wrong- way” as the I company planned to go public. This involves taking out money by skimming and re-laundering the money back into the organization to pump up earnings in the future.

Crazy Eddie Fraud Sam Antar, convicted fraudster and CEO of Crazy Eddie, indicates three steps for skimming money and inserting the money back into the business before and after going public. He calls it “The Panama Pump” – money laundering to increase and reported profits: 1) 1969-1979: Skimming and under- reporting income (tax fraud) prior to the big plan to go public. 2) 1980-1984: Gradually reducing skimming re-inserting cash to increase profit growth in preparation for the ini- tial public offering (i.e., committing se- curities fraud by “going legit”). 3) 1984-1987: As a public company, overstating income and inserting cash to help insiders dump stock at inflated prices using a variety of fraudulent tricks.

12 NEW ACCOUNTANT Huge Need for Forensic Accountants gagement that results from disputes or (ABFA). To be a full-fledged forensic ac- There is a huge current and future litigation. “Forensic” means suitable for countant, you need a certification. The need for the interesting profession of fo- use in court, and it is to that standard and ABFA was established in 1993 and was rensic accounting. You do not need to be potential outcome that forensic accoun- the first “broad based” forensic account- such a whiz with numbers, as Christian tants generally must work. ing board in the United States. Over the Wolff, but you do need to be skeptical, But forensic accounting is so much years the ABFA has been blessed to work persistent, and an excellent interviewer. more. Here are just some areas where fo- with many forensic accountants, board Computer software can help you be a rensic accountants can serve and be useful: members, and great members at large. Christian Wolff to find the red flags and Members include top accounting firms, uncover the fraud. • Forensic accountants are used in many governments and employees, educators, There is, of course, fraud in private situations as a preventative measure and and individual practitioners. industry, but I believe there is much to help reduce errors and waste. Even The first credential issued by the more in governmental entities. Dr. during times when businesses are not do- ABFA was the Certified Forensic Ac- Crumbley and I believe there might be ing as well, the need for forensic account- countant. Now the ABFA has multiple as much as $3 trillion of total fraud in ing will continue to be in demand in ad- credentials and designations and a brand- the U.S., each year. So, there is a real dition to traditional accounting services new world-class training program. This need for the suspicious forensic accoun- such as preparing financial statements, new forensic accounting training pro- tant. With a new administration in tax returns, etc. gram is the first part of a series of courses Washington, D.C., there probably will offered by the ABFA. This first program be more emphasis on reducing fraud • Many companies are using tools such is the Forensic Accounting Review (FAR) and abuse in the federal government. as Six Sigma and Lean Management to featuring Dr. Larry Crumbley as the in- help identify and reduce known errors structor and designer along with a great Red Collar Crime and reduce the chance of the occurrence team of educators and professionals. Just as in The Accountant movie, of unknown errors. Having a forensic ac- Here are some highlights of the Fo- there can be some excitement, thrills, countant or two on the team increases the rensic Accounting Review (FAR): and danger in forensic accounting work. chances of a successful engagement. The White-collar crime can lead to red collar mindset of a forensic accountant is to find For Individuals: The FAR provides ac- crime – violence, injury, and death. Just and prevent errors and irregularities. countants with a cost-effective and con- like the experience of forensic accountant • With the increases in technology we venient opportunity to develop valuable Calvin Joyner (Kevin Hart), in the movie have seen more cyber-based crimes and skill sets, create increased earning oppor- Central Intelligence, who tracked off- the need for cyber security. A forensic ac- tunities, and offers a pathway toward cer- shore accounts for an auction, is shot by countant with an information technology tification in Forensic Accounting. Bob Stone (Dwayne Johnson - The Rock) background is a useful tool to help reduce to save his life, forensic accounting can be risk in these areas. Equipped forensic ac- For CPA Firms: The FAR provides ac- exciting. Professor Richard Brody claims countants can utilize software tools to an- countants and auditors with special skill red collar crime is more prevalent than alyze large amounts of data in a fraction sets to perform forensic accounting en- expected. Fraudsters may become violent of the time it would take to do manually. gagements and expand the firm’s services to cover their crime. to the public and increase streams. There have been at least 30 homi- • Another area of work for forensic ac- Forensic accounting is the fastest growing cide crimes where a white-collar criminal countants is in the medical field. Health- segment of the accounting profession and killed or hired someone to kill a person care fraud is increasing and so is waste. one of the most profitable and popular. who discovered a fraud. Houses and of- Having a forensic accounting back- fices can be burned to destroy evidence. ground is valuable for healthcare auditors For Government: The FAR provides There has been at least one episode on and individuals who are entrusted with accountants, auditors, and investiga- Law & Order: Special Victims Unit the custodianship of these resources. tors with skill sets to identify waste and about red collar crime. inefficiencies and proactively address Consider Becoming a Certified fraudulent activities. ABFA’s Forensic Ac- What Is Forensic Accounting? Forensic Accountant counting Certification builds department So, what is forensic accounting? The I am the Executive Director of the reputation, saves taxpayer dollars, and in- classical definition is an accounting en- American Board of Forensic Accounting creases public trust.

12 NEW ACCOUNTANT NewAccountantUSA.com 13 Professional Outlook

For Schools: The FAR provides account- Future is Bright come very popular during the past ten ing programs with advanced learning op- Forensic accounting is one of the years. The “broad based knowledge” of portunities developed by a team of presti- fastest growing and highest paid profes- forensic accounting is beneficial to all ac- gious forensic accountants and educators, sions in the area of accounting and - countants, auditors, and investigators. preparing students for the workplace and ing. Here is some financial information Forensic accounting is the fast- making them stronger employment can- about forensic accounting: est growing segment in the accounting didates. profession, and the American Board of • Forensic Accountants earn more per Forensic Accounting is assisting in the For Businesses: The FAR provides ac- year. development of forensic accountants in countants with skill sets to identify waste the United States and around the world. and inefficiencies and proactively address • Growth industry: practitioners have ex- As a student, you can pass the Forensic fraudulent activities. ABFA’s Forensic Ac- perienced rapid growth, and expect more Accounting core exam (becoming a Reg- counting Certification builds company demand in the future. istered Forensic Investigator) and then reputation and customer trust. pass the CPA exam and become a Certi- • Firms offering forensic accounting ser- fied Forensic Accountant. In addition, if Forensic accountants are helpful in vices have billable rates for these services you decide to work for the Government, detecting and preventing fraud. Forensic that are much higher than for their tradi- you may qualify for the Government accounting is a great tool for law enforce- tional accounting, tax, and auditing ser- Forensic Accountant credential too. So, ment and auditing. Forensic accountants vices. do you have the skills, temperament, consult with attorneys and testify in and the courage to be a forensic accoun- courtrooms. Conclusion tant? Do you wish to solve puzzles? If So, who needs forensic accounting The American Board of Forensic Ac- so, become a forensic accountant. Join training? The answer is every accountant, counting provides education, training, the ABFA today at www.abfa.us. auditor, and investigator who works with and certification in the field of forensic money and . accounting. Forensic accounting has be-

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Professional Outlook

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Achieving Professional Success in Accounting

his article discusses broad topics for professional success; things that should interest the prospective accounting T major, should they wish to enter the profession. While some accountants work in the government or not-for-profit sectors, this article focuses on business, where most accountants are employed.

Dr. George D. Schmelzle Thomas E. Buttross Professor Associate Professor of Accounting Missouri State University Penn State University

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Professional Outlook

ccounting is more than you need to have an interest in do- You can or prepar- ing so. And you can start your quest lead by as- ing tax returns. Besides while still in high school. sisting others these compliance areas, This can be done in one or more and by mentor- accountantsA also engage in estate, of the following: ing those newer to gift, and income tax planning, pro- the organization. These • At the high school level consider vide wealth estimates for skills can be developed by joining Junior Achievement and Fu- businesses and individuals, design, one or more of the following: ture Business Leaders of America. implement and test new accounting If you get a job, look for oppor- systems, research complex topics, • Work in a business and pay at- tunities to contribute beyond your provide support to managers in man- tention to more than your specific immediate assigned tasks. As an aside, ufacturing products and developing job. As an aside, work experience, in addition to enhancing your lead- new products and in other ways con- while not required, will enhance ership skills, this kind of work com- sult with business and non-business your resume for when you seek mitment can change a good reference clients. Accountants are frequently full-time employment. A former em- letter into an excellent one. thought of as a business partner, pro- ployer can also serve as an excellent Under Business Acumen, we sug- viding expertise to help their organi- reference. gested you consider joining Future zation advance. • Visit a business and talk with those Business Leaders of America while who work there. See if you can “job in high school. For leadership, be- Accounting Knowledge and shadow” one of the employees. come an officer and get involved with Certification: their team competitions where you To practice accounting, there is • Watch relevant business programs can network with other future busi- no substitute for knowing account- on television, such as Bloomberg ness students. Of course, you can also ing. Take your accounting classes se- Television, CNBC, or Shark Tank. serve as an officer in non-business riously with the realization that you • Read business publications, such as situations, such as a high-school-class will need this knowledge for years to the Wall Street Journal, Forbes, and officer or officer in a chess club. come, both for your job and for certi- New Accountant. Join college organizations of inter- fication examinations. While certifi- est to you, which should include the cation as a CPA (Certified Public Ac- • Read stories about successful busi- accounting club or Beta Alpha Psi countant) is only required to become nesses. chapter at your university and seek a partner in a public accounting firm, • Read biographies of successful opportunities to serve as an officer some certificate is a great way to vali- business individuals. of the organization and to be a team date your accounting knowledge for member on any competitions that are your resume. There are several other Leadership: available. As an aside, organization certifications, including Certified As the low-level work previously membership and serving as an officer Management Accountant and Certi- done in large measure by accountants, are both good examples of extracur- fied Internal Auditor. such as bookkeeping and tax compli- ricular activities that read favorably ance, is being done by software, ac- on your resume, especially if you have Business Acumen: countants are being freed to do higher made an impact for the organization. To be successful in today’s ac- level work, such as planning and con- When opportunities arise to work counting profession, one needs to de- sulting. As a result, leadership skills in teams on college projects, embrace velop a business knowledge base. Of are rising in importance. Leadership them. Help the team to achieve its course, you can develop this knowl- is not about being the boss. It is about objective. The more you work with edge base while in college and contin- facilitating accomplishment of objec- different people, the easier it becomes ue to develop it after graduation, but tives when other people are involved. to adapt.

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Perhaps you want to help others at work and “make a difference in the world. A quick internet search shows hundreds of openings for accountants at Habitat for Humanity, United Way, Salvation Army, and more across the U.S. ”

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Become Emotionally Intelligent: At the high school Visit a business Some argue that EQ (emotional Work in a business Read business level consider joining and talk with those Business and pay attention publications and quotient) is more important than IQ Junior Achievement who work there. Acumen to more than your read or watch related and Future Business See if you can “job (intelligence Quotient) for rising to specific job. content online. Leaders of America. shadow” one of the higher level positions. Becoming emo- employees. When working in tionally intelligent means that you: If working, look for Become an officer in teams on college opportunities to an organization you projects, help the • need to manage your negative emo- contribute beyond have joined and get Leadership team to achieve its your immediate involved with their tions - be positive. objective by taking a assigned tasks. team competitions. leadership role. • use the correct vocabulary - speak Use correct Know your stressors and write in a professional manner. Have empathy - be Manage your vocabulary and and how to mitigate Emotional careful not to judge negative emotions - speak and write in a them. Be able to Intelligence others. • have empathy - do not judge others. be positive. professional manner. bounce back from setbacks. • know your own stressors - try to

avoid these. Spend some time Consider studying with people you in a foreign country. Make sure some • be able to bounce back from a set- consider different Global Acumen/ Spend time in the of your business from you, listening back - learn from your mistakes. Diversity foreign culture, reading or viewing to understand their Mind Set instead of spending has an international mind set. Be open to it all with your fellow aspect. • Do not underestimate the impor- understanding their American students tance of working with others! For mindset. more information, Google EQ or Microsoft Suite: Emotional Intelligence and read some Learn Excel and Word as these are of the literature. Tableau is used in Learn Python if you For transaction used extensively Technical data analytics and to are interested in processing, consider in business; also Capabilitie present data and is coding and data learning SAP or consider Access, Global Acumen/Diversity Mind Set: easy to learn. analytics QuickBooks. especially if you are The earth is made up of different interested in data countries, often with substantial dif- analytics. ferences in cultural norms, that trade with one another. Even within the Spend some time with people you ware. Some of this will be covered in U.S., there is great diversity, which consider different from you, listening your college courses. The first two in you will have to handle within your to understand their mind set. You are the list below are the most critical for organization and among your organi- not required to agree with their mind entry-level accounting positions. zation’s clients and suppliers. set, just to be open to understanding Microsoft Excel is the most used Consider studying in a foreign it. Differences can be based on politi- software by accountants. Take every country. Many high school foreign cal views, religion, race, ethnicity, gen- opportunity you can to improve your language classes will offer an opportu- der, or any other criteria you would Excel skills. Use Excel for any assign- nity to study abroad. Many universi- use to classify someone as different ment where it works and is allowed. ties offer “study away” programs that than you. When preparing tables with numbers, allow you to study for a summer or Make sure some of your viewing or use Excel formulas to compute totals. a semester in a foreign country. You reading for business acumen is for non- Take the time to make your output may be able to study business in the U.S. based businesses and individuals. professionally presentable, so that it foreign country. Of course, to receive becomes a habit. the full benefit, you need to spend Technical Capabilities Microsoft Word is used more than time in the foreign culture, instead of As an accountant, you will need Excel by the general public and is used spending it all with your fellow Amer- technical skills to do your job effi- extensively by accountants. Use Word ican students. ciently. Here, we look at some soft- for writing papers.

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Microsoft Access. Access is a rela- this would be a good program to learn. software. Considering Excel and Word tional database and is used by many as absolutely required for entry-level organizations to store data. It is more SAP or other Enterprise Resource accounting positions, the others can be powerful than Excel, but not used as Planning (ERP) software is used ex- added based on personal interest. much. If you have an opportunity to tensively by large organizations. If In summary, success in account- learn this program in high school or you have an opportunity to learn ing is much more than learning how college, do so. some of this, it can be beneficial. to do bookkeeping, although a strong Tableau.Tableau is used in the foundation in the rules and procedures emerging field of data analytics and software, such as of accounting and the development of is used to present data in a way that QuickBooks, is often implemented by some technical capabilities is a require- is understandable to users. Students accountants for small clients or used ment and some certification is a plus. can use and learn Tableau for free, by accountants working at smaller or- Accounting majors need to under- and it is easy to learn. If you have the ganizations. However, your opportu- stand the business environment and opportunity to take a data analytics nity to learn these software packages the global environment in which they course in college, do so. The impor- and your need to know them varies will serve and develop their emotional tance of this emerging field cannot be quite a bit among jobs and employers. intelligence and leadership skills. overestimated. If your college offers any accounting software courses, they may make de- Python. Python is used in data analyt- sirable electives. ics. If you are interested in coding, No one is expected to learn all this

NewAccountantUSA.com 21 Editor’s Note

Accounting: The Field of Opportunities Continued from Page 4 number of potential positions. Some gov- can travel, live, and work as an accountant For more on that topic, review the survey ernment accountants audit grants. Others anywhere English is spoken. Want to open by Robert Half, Staff Recruiting firm . carry guns and badges and make arrests. up your opportunities even further? Double Once you speak accounting, you have Some even travel the globe examining the major in accounting and another language, mastered the ‘language of business.’ This appropriate use of government money. like Spanish, French, German, Mandarin, mastery will allow you to move into other The world is open to accountants! A or any other language you prefer. This dou- fields and advance your career in unimagi- review of positions online shows open op- ble major will open up even more geograph- nable ways! You could become a corporate portunities all across the globe from Belize ic and career opportunities for you! president, head of a government entity, or to China to France! While some careers may Again, accountants are in demand! an accounting professor, as so many of this restrict travel or provide limited job options There is a substantial need for accountants issue’s contributors are. The doors open for in some locations, accounting will provide and it’s been projected that the trend will you. Take advantage of those opportunities. you with an incredibly diverse geographic continue. According to the Occupational Please explore the articles in this issue for selection. Picture yourself working near a Outlook Handbook, the U.S. Bureau of more information and various perspec- sunny beach or in the mountains next to Labor Statistics expects the demand for ac- tives on accounting careers. We hope you the ski slopes. Better yet, if you work for a countants will keep pace with our nation’s enjoy this publication, consider account- cruise line, you might be able to travel the economic growth. Unlike some other fields, ing as a potential career, and continue to world for free! If you work for an airline, the current demand for accountants will read New Accountant during your college you might get employee benefits for free not diminish in the coming years. Starting years and beyond. or discounted flights. Bottom line? You salaries are strong for accounting graduates. Best wishes and good luck! CUSTOM EDUCATIONAL PUBLISHING SINCE 1985

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