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The Profession

Accounting for Sustainability

Accounting for sustainability is the practice of considering the environmental and social costs of doing business when measuring organizational performance. During the recent economic crisis, practicing sustainability has become a competitive business tool and can also be a key contributor to the economic and environmental health of society. To better understand what accounting for sustainability is about and how it may influence your company's bottom line, read this brief from the AICPA.

CPA Perception Study Released

According to the latest AICPA research, CPAs are viewed by business decision- makers and investors more positively than any other business professional. Client satisfaction with CPAs is also high. About four of every five decision-makers at companies of all sizes say that they are satisfied with both their internal and external CPAs.

"The study confirms that the CPA brand is equated with a reputation as business' most trusted financial advisor," says Janice Maiman, Vice President of Communications & Media Channels, the AICPA department that oversees the research. "As we anticipate the road to economic recovery and stability, CPAs are in a unique position to help their clients re-think and shape the post-crisis environment."

This latest research of business decision-makers, investors, AICPA members, and young professionals found that all these groups associate CPAs with integrity, competence, and objectivity. While majorities of both decision-makers and investors feel this way, young professionals express particularly positive attitudes toward CPAs. About 75% of accountants under the age of 32 who are not CPAs say that CPAs are characterized by integrity, 80% say they are competent, and about 70% describe them as objective. What's more, 69% of investors and 74% of decision-makers believe that "CPAs have a unique perspective that is valuable when making business and financial decisions, even when those decisions are not directly related to accounting."

Young professionals express strong interest in becoming CPAs. A majority (55%) of non-CPA accountants under the age of 32 say they are very interested in pursuing a CPA credential. A slightly smaller percentage (47%) say they are very interested in obtaining an MBA (Masters of Business Administration), and 14% a CFA (Chartered Financial Analyst). This young professional group also may be attracted to specialty credentials, since about one in four (28%) say they are interested in other specialized accounting credentials, such as a Personal Financial Specialist (PFS), Certified Information Technology Professional (CITP), Accredited in Business Valuation (ABV), or Certified in Financial Forensics (CFF).

The study also found that respondents across the board understand that CPAs typically earn more than accountants who are not CPAs. Almost two-thirds (64%) of business executives say they pay the CPAs who work at their company more than non-CPAs, and 80% of public firm CPAs confirm that they do indeed earn more. Young professionals have the same perception. Four of every five (82%) college graduates under the age of 32 who are working in accounting but who are not CPAs believe that CPAs earn more than they do, with premiums ranging from 16-20%.

Among the study's other findings were:

74% of business executives and 76% of investors say they are more confident in a job done by a CPA than by an accountant who is not a CPA.
Only 43% of business executives and 31% of investors consider accountants certified by non-U.S. organizations to be just as qualified as CPAs.
66% of business decision- makers say that becoming certified as a CPA requires more rigorous training and testing than any other financial credential.

The study also revealed that concern about accounting fraud has decreased during the past few years. The top three major concerns of business decision-makers and investors are now global competitiveness, the cost of healthcare benefits, and economic growth. Only 5% of business decision-makers and 9% of investors considered fraud to be one of their top concerns. It should be noted, however, that the research was conducted prior to the revelations of the financial scandals of the fall of 2009.

Despite the overall positive results, CPAs seem to have a self awareness about areas where they could make improvements. While they rank themselves high in integrity, competence, objectivity, and their ability to synthesize information from multiple sources, they rank themselves much lower on "softer" skills, such as communicating effectively, demonstrating leadership, and being innovative. Both business decision-makers and investors agree with this assessment.

This latest research is part of the AICPA's ongoing efforts aimed at measuring perceptions about the CPA brand. It was conducted in August 2008, just before the current financial and economic crisis began. The study included both multiple choice questions for statistical analysis, as well as in-depth interviews and focus groups to provide more qualitative responses. All told, 1,922 people, representing all the constituents that the AICPA serves, participated in the research.