Economy

Practice Development

Business Consultant tells accountants... step up to the plate!

And the survey says… many small business owners feel they are not getting satisfactory help from their accountants in becoming profitable.

FDIC expects FAS 166 and 167 to increase bank capital requirements

Banking organizations affected by new accounting standards generally will be subject to higher minimum regulatory capital requirements.
Technology

Techies are poised to lead economic recovery

Technology executives believe that the technology sector will recover from the current economic crisis substantially more quickly than the U.S. economy.
Community News

Will calculate for food

Wilson Lauture, a Stamford, CN accountant, isn't taking his recent layoff standing still.

Mortgage loan fraud increasing

The number of Federal Bureau of Investigation’s (FBI) investigations of mortgage fraud and associated financial crimes is on the rise.

Obama's proposed watchdog agency designed to reduce your risk

"Consumer protection will have an independent seat at the table in our financial regulatory system," says Treasury Secretary Timothy Geithner recently while discussing President Obama's proposal to form a new watchdog agency.

$65 billion Ponzi scheme equates to 150 years in prison for Bernie Madoff

An "extraordinarily evil" fraud that took a "staggering toll" on its victims... that's what the judge said when he sentenced Bernard Madoff, age 71, to the statutory maximum, 150 years in prison for running a Ponzi scheme estimated at $65 billion. No parole is available. For good behavior, he could get 15 percent of the time knocked off, leaving him 127 years to serve.When federal Judge Denny Chinn handed down the verdict on June 29th, the courtroom erupted in applause.
Education & Careers

72% of employers will strengthen employment brand to prepare for economy turn-around

As the nation works toward recovering from one of the steepest downturns in U.S. history, employers are preparing now for when the economy rebounds, according to a recent CareerBuilder survey. Seventy-two percent of employers who have employment brands say they are taking measures to strengthen those employment brands today, so they are competitively positioned for an upturn down the road.Employers are working to remedy the fallout of a grueling economy. The U.S. has lost 6 million jobs since the recession began in December 2007, according to the Bureau of Labor Statistics.
Education & Careers

New MBA grads looking at alternative careers

As anyone from the MIT Sloan School of Management Class of 2009 will tell you, looking for work this spring has been no picnic. But now that most of them have landed jobs, they might also admit that the global economic downturn had some unexpected benefits. For some, the financial meltdown forced them some to consider different industries, different locations, and even different career paths and turned them on to new professional challenges.

CPA firms predict economic recovery will begin late in 2009

Forty-seven percent of small- to medium-sized CPA firms believe the economy will begin to recover in the fourth quarter of 2009, according to the American Institute of Certified Public Accountants' 2009 CPA Firm Top Issues Survey. Ten percent of firms believe the economy is already improving. "The majority of CPAs in small- and mid-size firms counsel businesses on financial matters, so it is encouraging that they believe recent signs of economic improvement will continue," said James Metzler, AICPA vice president for small firm interests.

CPAs are asked to voice opinions on today's economy

As part of an industry that is closely tied to and deeply affected by the nation's economy, CPAs have been provided an open platform by U.S. News & World Report to voice their opinions about the current economic recession, rapidly changing regulations and related financial topics. American taxpayers want to know the accounting professional's side of the story on today's hottest issues. Responses to the poll will be included in a national news forum published by U.S.

Wealthiest Americans are changing their spending, investing habits

U.S. economic woes and stock market volatility have prompted changes in the investment and social behaviors of high-net-worth Americans, according to a new survey of CPA Personal Financial Specialists conducted by the American Institute of Certified Public Accountants.Lyle K. Benson, Jr., CPA/PFS, founder of L.K. Benson & Company, Baltimore, MD, said the behavioral changes in wealthier Americans illustrate the need for a greater emphasis in financial planning.
A&A

Sustaining your business: What are you waiting for?

AccountingWEB interviewed Mike LeMaster of Revenue Advisors. Here are his thoughts on sustaining businesses in the current economic upheaval.
A&A

Corporate finance leaders predict economic recovery in two years

Two recent surveys of corporate finance leaders in Southern California revealed that while most businesses are reporting declining revenues and employment in 2009, four out of five of these finance executives expect recovery within the next two years, without widespread restructuring or business failure.The Orange County Chapter of Financial Executives International (FEI) and local chapters of the Institute of Management Accountants (IMA) conducted surveys of their memberships in April and May, respectively.

Short-term lenders may face new regulatory obstacles

Without a pawnshop and a gold onyx ring, Patrick Heinaman's grandmother might have missed her daughter's funeral. The short-term loan put the 412-mile trip to Port Lavaca within reach. It was costly, but her only option. But Heinaman's grandmother and other low-income borrowers would have a harder time getting an emergency loan of that type if the legislation Congress is considering to cap interest rates on all consumer credit transactions passes.

PwC says U.S. will need bad bank to take care of toxic assets

Amid reports that the government's plan to remove toxic assets from U.S. banks is floundering, the world's largest accounting firm came out with a report this week saying that a "bad bank" solution is probably inevitable. Treasury Secretary Timothy Geithner has sought to avoid a bad bank solution with his proposal for a Public-Private Investment Program that enlists private sector fund managers and private equity along with generous government credit guarantees to purchase the assets, effectively providing a government subsidy.

Parents are putting children's college costs ahead of retirement planning

A majority of parents (61 percent) are not letting the recession change their plans for their children's college education, according to a survey by Country Financial. Further, 47 percent say college plans are a higher priority than retirement savings (41 percent).
Education & Careers

Recession inspires mothers to return to school; business, accounting popular options

Earning a degree has long been a dream of many working mothers. While it might seem the recession would put that dream even further out of reach for most, many working and single mothers are actually drawing inspiration from the economy to pursue their dream of getting a higher education.
A&A

Economy: SBA expands eligibility for small business loans

More small businesses will be eligible for U.S. Small Business Administration-backed loans, meaning greater access to much-needed capital in this tough economy, as a result of a temporary alternate size standard for the agency's largest lending program.SBA's alternate size standard for its 7(a) loan program is effective through September 30, 2010. As a result of the temporary change, more than 70,000 additional small businesses – including auto and RV dealerships, auto industry suppliers and others – could be eligible to apply for SBA 7(a) loan.

Economic sentiment turns cautiously optimistic among CFOs and CPA execs

Pessimism about the U.S. economy among chief financial officers and senior-level executive Certified Public Accountants eased in the second quarter, according to a new survey conducted by the American Institute of Certified Public Accountants and the University of North Carolina's Kenan-Flagler Business School. Arleen Thomas, AICPA's senior vice president for member competency and development, said the shift in sentiment indicates financial executives and CPAs see the economy contracting at a slower pace and suggests the U.S. recession may be reaching a bottom.

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