Crypto.com mistakenly sends customer $7.2 million; the consequences drunken Big Four work events; Intuit releases automated tax advisory app; as prices rise, CFO's turn to automation

Bad Bookkeeping

The Accounting Podcast (formerly the Cloud Accounting Podcast) is the world's #1 accounting, bookkeeping, and tax podcast! Join us weekly for a roundup of accounting news, analysis, and interviews. Plus, earn free NASBA-approved CPE credits for listening with the Earmark app. Learn more at https://earmarkcpe.com.

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Blake and David take a dive into Google's decision to offshore accounting jobs to Mexico and India, which Google’s CFO claims is necessary to free up resources to invest in AI. They also discuss the stagnation of CPA salaries despite a shortage of talent. The conversation touches on a variety of other topics, including the modernization of the IRS, the future of the CPA profession, and advice for young accountants looking to carve their own career paths in a rapidly changing industry.  Sponsors
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Chapters
(05:53) - Blake reads some tweets about hours people are working during busy season

(10:52) - Unlimited PTO is worse for employees

(13:22) - College degrees aren't necessary for success

(20:24) - Florida creates retired CPA status

(23:35) - Listener mail on the 150-hour rule and salaries

(29:16) - Update on Boston's commercial real estate woes

(33:48) - Why office rent prices are still so high

(43:10) - Some encouraging IRS news

(48:27) - Internal audit reveals 279 former IRS employees or contractors still had access to logins

(52:12) - Offshoring can be good or bad

(54:04) - Setting a limit on billable hours

(55:50) - Let accounting firms decide what requirements accountants need

(58:08) - The rise of the "remote partner"

(01:04:00) - Wrap up and Earmark now has a web browser version
 Show Notes Google restructures finance team as part of AI shift, CFO tells employees in memo https://www.cnbc.com/2024/04/17/google-restructures-finance-team-as-a-part-of-ai-shift-cfo-tells-employees-in-memo.html   Josh Youngblood, EA didn’t work over 40 hours per week in tax season https://x.com/joshyoungblood/status/1779858374403747847?s=12   Skills-Based Hiring Can Shred the Paper Ceiling | BCG https://www.bcg.com/capabilities/diversity-inclusion/expert-insights/skill-based-hiring-can-shred-paper-ceiling   The Office Market Is in Turmoil. So Why Are Rents More Expensive? – WSJ https://www.wsj.com/real-estate/commercial/the-office-market-is-in-turmoil-so-why-are-rents-more-expensive-d096f961?st=9ieavh5j7ep3wcw   Florida Legislature Passes Bill Creating New Retired CPA Status | Florida Institute of CPAs https://www.ficpa.org/publication/florida-legislature-passes-bill-creating-new-retired-cpa-status   Kyle J. Bauman, CPA on X: "“Unlimited PTO” “Only 2100 Hours” https://twitter.com/kjb_cpa/status/1763595505928442248   62% of Americans Lack a College Degree. Can They Solve the Labor Shortage? https://www.wsj.com/lifestyle/careers/employers-open-more-doors-to-workers-without-degrees-but-few-are-getting-in-732f1098   Senior Leaders Nearly Twice as Likely To Receive AI Resources as Junior Staff | CFO https://www.cfo.com/news/senior-leaders-are-nearly-twice-as-likely-to-receive-ai-guidance/707230/   IRS didn't remove contractors' access to sensitive information | Accounting Today https://www.accountingtoday.com/news/irs-didnt-remove-contractors-access-to-sensitive-information   Boston mulls commercial tax hike         https://www.accountingtoday.com/articles/boston-mulls-commercial-tax-hike-to-counter-office-market-slump   IRS Commissioner Delivers End Of Tax Filing Season Message Touting Improvements https://www.forbes.com/sites/kellyphillipserb/2024/04/15/irs-commissioner-delivers-end-of-tax-filing-season-message-touting-improvements/   Florida Creates New Status for Retired CPAs in the State           https://www.cpapracticeadvisor.com/2024/04/15/florida-creates-new-status-for-retired-cpas-in-the-state/103983/   Treasury cash balance jumps most in 2 years as tax payments rise https://www.accountingtoday.com/articles/treasury-cash-balance-jumps-most-in-2-years-as-tax-payments-rise   The rise of the remote accounting firm partner                https://www.accountingtoday.com/news/the-rise-of-the-remote-accounting-firm-partner   Werfel sees IRS budget request yielding $341B in extra revenue https://www.cfodive.com/news/werfel-sees-irs-budget-request-yielding-341b-extra-revenue-tax-taxation-enforcement/713534/   Google restructures finance team as part of AI shift, CFO tells employees in memo https://www.cnbc.com/2024/04/17/google-restructures-finance-team-as-a-part-of-ai-shift-cfo-tells-employees-in-memo.html   Despite moratorium, IRS gets 20,000 ERC claims weekly, Werfel says https://www.journalofaccountancy.com/news/2024/apr/despite-moratorium-irs-gets-20000-erc-claims-weekly-werfel-says.html Need CPE? Get CPE for listening to podcasts with Earmark: https://earmarkcpe.com
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Google Blames Accounting Layoffs on AI

Blake and David delve into the effects of remote work on accountant salaries and the mental health challenges faced by auditors at Big Four firms. They inspect a recent study showing lower pay for hybrid workers compared to fully remote or in-office employees. They also contemplate the future of work organization inspired by Bill Anderson, CEO of Bayer, and discuss the potential impact of AI on the accounting profession, the accuracy of AI-related surveys, and the misrepresentation of AI capabilities in recent news headlines.
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Chapters
(00:34) - Will accountants soon earn overtime pay?

(04:57) - Listener writes in about their own audit experience at a Top-30 firm

(08:14) - Trump's Truth Social audit update

(14:44) - PCAOB proposed audit metrics

(20:44) - 71% of Big 4 auditors worry about mental health

(23:27) - Blake shares a clip from new Bayer CEO

(33:48) - H&R; Block employees prefer remote work

(38:14) - Remote accountants get paid less

(39:35) - Executives and managers perceive in-office workers as higher performers

(42:06) - The four day work week is becoming more common

(45:27) - Cody writes in about Big 4 vs industry

(47:09) - Hannah asks about outsourcing and offshoring costs

(49:59) - Amazon Fresh stores were using Indian employees for "just walk out" tech

(55:22) - Shohei Ohtani's translator charged in sports gambling case

(58:14) - Accounting Today wrongly claims accountants are saving 30 hours a week on average using AI

(01:01:34) - Blake shares a clip from the All In podcast on the future of AI

(01:04:48) - Is it time for a new ERP system?

(01:07:47) - Thanks for listening and remember to subscribe
 
 Show Notes 71% of Big 4 Auditors Worry About Mental Health | CFO              https://www.cfo.com/news/71-of-big-4-auditors-worry-about-mental-health/712063/   Will Getting Rid of Bosses Fix the Workplace? - The Journal. - WSJ Podcasts https://www.wsj.com/podcasts/the-journal/will-getting-rid-of-bosses-fix-the-workplace/fc0d31d3-2d08-441e-abd8-d77b660fe258   59% of accountants use AI to save about 30 hours a week on tasks | Accounting Today https://www.accountingtoday.com/news/59-of-accountants-use-ai-to-save-about-30-hours-a-week-on-tasks   Y Combinator wants to fund new enterprise resource planning (ERP) software" https://www.instagram.com/reel/C3-zHmOIqbI/?igsh=dTMxMDBjNGg3a2p0   Ohtani translator charged with stealing millions for 19,000 bets | Accounting Today https://www.accountingtoday.com/articles/ohtani-translator-charged-with-stealing-millions-for-19-000-bets   KPMG Fined Record $25 Million in Exam-Cheating Scandal – WSJ https://www.wsj.com/articles/kpmg-fined-25-million-over-alleged-netherlands-exam-cheating-a4dcba2a?st=yl6xiqm8nh6gug8   Botkeeper Infinite replaces outsourcing with more AI to help firms automate | Accounting Today https://www.accountingtoday.com/news/botkeeper-infinite-replaces-outsourcing-with-more-ai-to-help-firms-automate   More Companies Adopt 4-Day Work Week - CPA Practice Advisor         https://www.cpapracticeadvisor.com/2024/03/27/more-companies-adopt-4-day-work-week/103199/   When Layoffs Happen, Remote Workers Are Hardest Hit - WSJ                https://www.wsj.com/lifestyle/careers/layoffs-remote-work-data-980ed59d?reflink=integratedwebview_share   Does Working from Home Boost Productivity Growth? | San Francisco Fed      https://www.frbsf.org/economic-research/publications/economic-letter/2024/january/does-working-from-home-boost-productivity-growth/ 
Trump Media's Accounting Firm Has Audit Deficiency History  https://finance.yahoo.com/news/trump-media-accounting-firm-history-150150627.html   Amazon's Just Walk Out Actually Uses 1,000 People in India https://www.businessinsider.com/amazons-just-walk-out-actually-1-000-people-in-india-2024-4   PCAOB Wallops KPMG Netherlands With Record $25M Fine For Exam Cheating https://www.cpapracticeadvisor.com/2024/04/10/pcaob-wallops-kpmg-in-the-netherlands-with-25-million-fine-for-exam-cheating/103803/   PCAOB crackdown shifting to focus on auditing firms https://www.accountingtoday.com/news/pcaob-crackdown-shifting-to-focus-on-auditing-firms   PCAOB Proposal Would Require Audit Firms to Disclose a Variety of Metrics https://www.cpapracticeadvisor.com/2024/04/10/pcaob-issues-proposal-requiring-audit-firms-to-disclose-variety-of-metrics/103758/   PCAOB proposals call for firms to disclose more about themselves https://www.journalofaccountancy.com/news/2024/apr/pcaob-proposals-call-firms-to-disclose-more-about-themselves.html   Only 48% of accounting, consulting, legal, and private capital professionals have used AI tools at work despite near ... 

Remote Accountants Get Paid Less

Joe Woodard joins Blake and David to examine how accountants and bookkeepers can increase the value of their services in the eyes of their clients. Joe introduces the Cobb value curve, illustrating how differentiation and relative value impact pricing. He emphasizes the importance of offering unique, high-value services like controllership and financial planning to stand out from commoditized offerings and command premium prices. Meet Our Guest, Joe Woodard LinkedIn: https://www.linkedin.com/in/quickbooksadvisor
Twitter: https://twitter.com/joewoodard 
 Learn more about Woodard Website: http://www.woodard.com Need CPE? Get CPE for listening to podcasts with Earmark: https://earmarkcpe.com
Subscribe to the Earmark Podcast: https://podcast.earmarkcpe.com 
 Get in Touch Thanks for listening and the great reviews! We appreciate you! Follow and tweet @BlakeTOliver and @DavidLeary. Find us on Facebook and Instagram. If you like what you hear, please do us a favor and write a review on Apple Podcasts or Podchaser. Call us and leave a voicemail; maybe we'll play it on the show. DIAL (202) 695-1040. 
 Sponsorships Are you interested in sponsoring the Cloud Accounting Podcast? For details, read the prospectus. 
 Need Accounting Conference Info?  Check out our new website - accountingconferences.com 
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 Transcripts The full transcript for this episode is available by clicking on the Transcript tab at the top of this page

Delivering Nuclear Value in Accounting

Blake and David dive into the concerning trend of small CPA firms conducting shoddy audits of large companies and SPACs, raking in big fees while facing minimal consequences for deficient work. They also discuss the latest accounting app funding news, the power of AI for crafting persuasive arguments, and the American Institute of CPAs' puzzling resistance to changes in CPA licensure requirements and touch on the growing importance of client accounting services for public accounting firms.  Sponsors
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Chapters
(00:38) - Blake is back from a conference in Atlanta

(03:12) - The truth behind Trump's Truth Social SPAC audit

(18:41) - AI startup Fieldguide secures $30 million in Series B funding

(21:57) - FundGuard secures $100 million in Series C funding round

(23:42) - BotKeeper launches BotKeeper Infinite

(29:29) - Scientists find that AI is more persuasive than humans at changing people's opinions

(37:41) - Formula 1 team using Excel to track car parts

(39:34) - CAS is the fastest-growing service in Accounting Today's annual survey

(41:34) - The AICPA warns about losing the 150-hour rule

(48:46) - Send us an email and remember you can earn FREE CPE for listening to this podcast!
 
 Show Notes 
Fieldguide Raises $30 Million to Combat CPA Shortage With AI https://www.pymnts.com/news/investment-tracker/2024/fieldguide-raises-30-million-to-combat-cpa-shortage-with-ai/

 AI accounting startup raises $100M https://www.accountingtoday.com/articles/ai-accounting-startup-fundguard-raises-100m-in-new-funds On the Conversational Persuasiveness of Large Language Models: A Randomized Controlled Trial (PDF)  https://arxiv.org/pdf/2403.14380.pdf?utm_source=www.therundown.ai&utm;_medium=newsletter&utm;_campaign=nvidia-s-new-ai-chip-competitor   The year CAS took over https://www.accountingtoday.com/opinion/the-year-cas-took-over-accounting 
Need CPE? Get CPE for listening to podcasts with Earmark: https://earmarkcpe.com
Subscribe to the Earmark Podcast: https://podcast.earmarkcpe.com 
 Get in Touch Thanks for listening and the great reviews! We appreciate you! Follow and tweet @BlakeTOliver and @DavidLeary. Find us on Facebook and Instagram. If you like what you hear, please do us a favor and write a review on Apple Podcasts or Podchaser. Call us and leave a voicemail; maybe we'll play it on the show. DIAL (202) 695-1040. 
 Sponsorships Are you interested in sponsoring the Cloud Accounting Podcast? For details, read the prospectus. 
 Need Accounting Conference Info?  Check out our new website - accountingconferences.com 
 Limited edition shirts, stickers, and other necessities TeePublic Store: http://cloudacctpod.link/merch 
 SubscribeApple Podcasts: http://cloudacctpod.link/ApplePodcastsYouTube: https://www.youtube.com/@TheAccountingPodcastSpotify: http://cloudacctpod.link/SpotifyPodchaser: http://cloudacctpod.link/podchaserStitcher: http://cloudacctpod.link/StitcherOvercast: http://cloudacctpod.link/Overcast
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 Transcripts The full transcript for this episode is available by clicking on the Transcript tab at the top of this page

Get Rich Doing Bad Audits

Blake and David dig through the latest accounting news, including the effectiveness of pizza parties in boosting accounting firm morale, the record number of baby boomers reaching retirement age, and the impact on Social Security, as well as the massive amount of COVID-related fraud originating in South Florida. They also take a look at audit integrity issues, the long working hours in accounting, and some of the latest app headlines.  Sponsors
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Chapters
(00:22) - Thomson Reuters says pizza parties boost accountants morale

(03:33) - Trump cheats at golf

(04:50) - Truth Social goes public

(07:41) - Grant Thornton sells majority stake to private equity firm

(12:28) - Almost 20% of all PPP fraud happened in South Florida

(17:59) - 49ers docked 5th round draft pick for accounting error

(20:08) - Sam Bankman Freed sentenced to 25 years in prison

(22:29) - David shares WSJ video on the future of social security

(31:16) - Tingo audit faulire update

(41:48) - Big 4 Transparency firm awards

(50:28) - Blake takes on a Reddit user's problem

(56:35) - Microsoft Teams combining business and personal offerings

(57:04) - Thanks for listening and remember to subscribe
 
 Show Notes FTX Founder Sam Bankman-Fried Sentenced to 25 Years https://www.wsj.com/finance/currencies/sam-bankman-fried-sentencing-ftx-fraud-2d92fce9?st=d45lmr6uc8gg6wc 
 Trump ‘cheats like a mafia accountant’ at golf, writer who played with him says - pennlive.com https://www.pennlive.com/news/2024/03/trump-cheats-like-a-mafia-accountant-at-golf-writer-who-played-with-him-says.html 
 Big 4 Transparency - Awards Season 

Bad Bookkeeping

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