Is your firm's biz model outdated?
Plus: AI for students had entered the chat[GPT] | Supermicro shares nosedive
Could sticking to old-school business models put your firm and career at risk? Private equity, tech upgrades and new governance trends are shaking up accounting firms – and the partnership model might not survive. Let's dig in.
In Today's Newsletter:
⚫ Supermicro shares plummet on EY departure
⚫ Is the end of accounting partnerships on the horizon?
⚫ How accounting students use ChatGPT
⚫ FASB releases software proposal
Supermicro shares dip as EY exits amid DOJ Probe
Supermicro's stock fell 35% today following Ernst & Young's resignation as its auditor. EY cited concerns about management reliability and potential legal violations. The resignation comes one month after the Department of Justice launched a probe into possible accounting manipulation and export violations at Supermicro. The stock hit its lowest level since January. (Tom's Hardware)
🎧 Is the partnership model dead?
This episode of Accounting Influencers dives into whether the partnership model is becoming obsolete and the potential for non-partners to lead firms. This quick 15-minute episode, hosted by Rob Brown, is packed with insights. It delves into important topics like the decline of managing partner roles, the shift to corporate models, and how private equity and tech advancements, including AI, are reshaping accounting firms. (Accounting Influencers)
What you had to say: Recently we asked if the industry was due for an overhaul. Readers said: "AI will reduce the need for accountants and the profession will need higher skilled people." Another said, "I agree that the industry needs a make-over as the requirements are taxing for the payoff. Raises will be a start, but we also need to embrace AI and technology."
What we're watching: Creator JP Thomas, CPA is calling attention to the 7 million children who went missing in 1987 in his "Accounting Mysteries" video. (Spoiler: It's not what you think)
What we're laughing about: This tongue-in-cheek Instagram reel from @DepPaulBiz about closing the books, balancing sheets and spreadsheets.
$3 billion
The amount of Amazon shares Jeff Bezos sold in his newest stock trade. (Geek Wire)
- Generous Donation: Jones Capital CEO gifts $10M to Ole Miss
- EY Audit Concerns: Firm finds employee testing irregularities
- ChatGPT Insights: Study explores student use in real scenarios
- FATE Event Recap: 5 key highlights from the first gathering
- AI Strategies: 6 practical ways to implement in accounting
FASB plans software accounting guidance changes
The Financial Accounting Standards Board released a proposal Tuesday to update how companies account for internal-use software. The proposed changes aim to provide targeted improvements to existing guidance, according to FASB. The public comment period runs through January 27. No timeline has been set for finalizing the proposal. (CFO Dive)
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The Net Gains is curated and written by Paul McCormack and edited by Bianca Prieto.