New York City Accounting Firms Aren't What They Used to Be. Like Many
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ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS The New Accounting Firm ew York City accounting firms aren’t what they used to be. Like many industries, accounting has been transformed by sweeping economic after- effects of the Great Recession as well as new digital ways of working. These changes are indeed visible at the many local accounting firms that contribute Nto New York City’s role as world financial capital. In the pages that follow, Crain’s looks at some key trends shaking up the New York City accounting industry—and the field as a whole—ranging from globalization and more mobile ways of working, to increased demands from aging Baby Boomers for help in selling their businesses. We also look at how accounting firms are pioneering new approaches to workplace flexibility—and how a freelance revolution is enabling independent accountants to tailor this for themselves. As trends expert Daniel Levine, director of The Avant-Guide Institute in Manhattan, put it, “Technology is facilitating this change in the way people work.” Read on to find out all about the trends and innovations that are reshaping the accounting field in New York. CRAIN'S Corporate profiles in Accounting_MECH.indd 1 10/21/15 11:55 AM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS n the hunt for promising new clients, with their accountants through another tool called big companies. Freyman asks his team to upload EisnerAmper’s accountants spend a lot PwC Connect, which is also accessible via mobile sensitive documents to Box, instead of sending it by of time visiting technology incubators devices, Brennan noted. email. and university campuses. While some accounting firms prefer working mainly with Another hot trend for accounting firms is using “Box is not a cheap solution, but it’s incredibly Ocorporate clients, EisnerAmper, a CPA and consulting “Big Data” techniques to help clients sift through secure,” said Freyman. firm with an office in Manhattan, likes to get in on the information that was previously hard to analyze. ground floor with startups. “Our standpoint is we are PwC is mining clients’ financial records to uncover It may be pricey for a small firm, but with many of building something at the early stage to help these patterns they may not have noticed. “It allows us to the big guys going after the same clients, Freyman companies grow and become our next large client,” see the totality of the business and get some useful considers it a good investment. “It’s one of the ways said Mike Lopez, a partner in the firm. insights that maybe our clients aren’t seeing,” said we’ve really been able to distinguish ourselvs from Accounting Goes Digital other accounting firms,” he said. EisnerAmper is one of many New York City Brennan. For instance, if PwC notices that a firm is accounting firms that find technology is transforming making 70% of its shipments on the last day of each their practices. While chasing down the next Google month, every year, it might mention that to the client as clients, many are using fast-evolving technologies so they could use that information for future planning. for both internal work and communicating with customers. They are also staffing up with young, Some accounting firms find that with more and tech-savvy talent. more clients going digital, it’s become increasingly more necessary to hire accountants with the digital Cybersecurity 101 Today’s accountants need to be savvy about expertise to advise them. Accounting, tax and As accounting firms embrace digital anything from firewalls to general IT issues, consulting firm Citrin Cooperman, headquartered technology, cybersecurity has become a top according to CPA Yigal Rechtman, principal in the in Manhattan, has doubled the size of its state and priority. In September 2015, ACCA USA, the litigation and forensics practice at accounting and local tax practice to meet the demand brought on U.S. branch of the Association of Chartered business consulting firm Grassi & Co.’s office in New by new technology, said New York City-based CPA Certified Accountants, and Pace University York City. “You need to be able to do sophisticated David Seiden, the partner in charge of that practice. issued a report called “Cyber Warriors with things with databases, and extract large amounts of Calculators” that found 58% of auditors and data from various and complex sources,” he said. “We do a lot of work with companies that are 48% of accountants are more concerned with both investing in technology and are building out cyber crime than a year ago. Certainly, the new technology is not without its technology to offer their own services through a challenges. Many firms have seen an increasing digital platform,” said Seiden. “What we do here at It should be top of mind, according to need to invest in Cybersecurity measures that Citrin Cooperman is help them find a digital platform Thomas DeMayo, director, IT Risk Advisory, protect sensitive information for clients. “It is a to help them perform their services.” at CPA firm O’Connor Davies LLP in concern for just about every accounting firm we Manhattan. “Organizations assume that just network with,” said Thomas DeMayo, director, As accounting firms migrate to digital technology, because IT `works,’ it works securely; or they IT Risk Advisory, at CPA firm O’Connor Davies LLP they increasingly seek out talent that is already operate with the misconception that they are in Manhattan, in an email. accustomed to it. When PwC recruits on college too small or insignificant to be a target,” he campuses, it looks for a combination of accounting said in an email. As many organizations are But that is a cost most are willing to bear to and tech skills. Said Brennan, “We’re seeing unhappy to discover during cybersecurity stay competitive. Nationally, many accounting students get their four-year accounting degree audits, that lax attitude leaves them exposed firms are embracing new technologies, and and enhancing that with a master’s in information to hackers, say experts. the bar is especially high in New York City, a security.” DeMayo says there are several safeguards financial technology capital. Seventy percent every accounting firm should embrace: of U.S. accounting firms now offer employees At Grassi & Co., employees with entrepreneurial • Establish an information security framework. remote access to their network; 50% use remote, ideas in areas such as technology and healthcare This is a documented set of procedures for cloud-based backup; 48% now use cloud-based can request to focus on developing them. So far, putting information security controls in place software and 25% use Skype, according to the 2014 a small handful of employees are doing so, said and managing them. Management of an Accounting Practice Survey from Rechtman. “If someone has an entrepreneurial idea, the American Institute of CPAs’ Private Companies the firm will consider giving them a certain amount • Have independent cybersecurity Practice Section and the Texas Society of CPAs. of time to do it,” he said. assessments conducted. • Provide security awareness training for Working in the field with clients is one key area where It isn’t just large and midsize firms that are all employees so they don’t get tricked by technology has transformed the way accounting embracing new technology. New York City CPA Greg “phishing” emails from hackers and the like. firms operate. More firms are turning to cloud-based Freyman, whose firm, Freyman CPA, has a handful of • Encrypt sensitive data, both in transit and at software and storage programs that let their personnel accountants in Manhattan and Westwood, N.J., has rest. work from anywhere. “If you really can’t do things been an early adopter of using electronic signatures on Android devices, an iPad or other mobile devices, through DocuSign digital transaction management • Do due diligence on all third parties that you’re going to get left behind,” said Bill Brennan, software. “Using a software like DocuSign lets have contact with their data. audit partner at PricewaterhouseCoopers office in clients sign from anywhere on the go,” said It’s not just accounting firms that are at risk, Manhattan. Freyman. DeMayo notes. “Our number-one request these days is helping clients protect their data To avoid that hazard, PwC has made its audit Freyman also sets up all of its clients with Box, a and/or helping them respond in the event of software Aura accessible from their smartphones secure cloud-computing solution used for content- breach,” he said. and mobile devices. Meanwhile, clients can work management, file-sharing and collaborating by many CRAIN'S Corporate profiles in Accounting_MECH.indd 2 10/21/15 11:55 AM “As WeiserMazars approaches its 100 year anniversary, I feel privileged to be leading this great organization as we continue expanding our practices and geographic footprint. During my tenure at the firm I have seen us grow to become a global player and I look forward to CEO Victor Wahba delivering exceptional, world class client service.” eiserMazars LLP provides insight and specialized Worldwide Resources experience in accounting, tax and advisory services to business enterprises and high-net-worth individuals. As the independent U.S. member firm of Mazars Group we have W a global reach of 15,000 professionals in more than 70 countries. Since 1921, our skilled professionals have leveraged technical expertise and industry familiarity to create customized solutions Focused Industry Knowledge to assist clients in overcoming challenges, whether on a local, national, or international level. Our professionals possess comprehensive industry-specific knowledge gained from direct sector experience and rigorous • Over 100 partners and approximately 700 professionals training. This allows us to provide proactive, practical advice in more than 10 U.S.