Trust Within the CPA Profession

Our profession has gone through unprecedented challenges since December 2001. After disclosures concerning Enron, Qwest, Tyco, Xerox and WorldCom, we are moving rapidly toward more government regulation. I am reminded of the savings and loan failures of the late 1980s and the fallout experienced at that time. We learned and improved from those events. We will learn and improve from these events as well. Among other things, we will be more cautious in client acceptance; we will charge a more realistic fee for audits; we will insist upon full candor from client representatives.

These events have contributed to an erosion of trust in our profession. The unwavering reliance of businesses on the integrity of their CPAs. The trust of our staff people that partners will apply ethics and sound judgment. The trust we have in the integrity of our clients. The trust we give to our partners. And, the trust we historically have bestowed upon professionals in other CPA firms to uphold the tenets and values of our noble profession.

It is my observation that very trivial matters can have a significant impact on an individual’s ability to trust another individual or an organization. It does not have to be – and usually is not – a cataclysmic event that destroys trust. A client is surprised by a bill. A staff member’s performance review is delayed. A partner cuts the fee for a pet client. A partner objects to accountability. Trust is an emotion. It is gained through consistency, accountability, and unwavering adherence to values. It is the cornerstone of a healthy firm’s culture.

Without trust in a firm, it is very difficult to find the answers to the questions plaguing our profession.

• Where are we going to find the people we need?
• Who will lead in the future?
• Who will be here to pay my retirement?
• How do we improve our profitability?
• How do we grow?

When trust exists, the resolution of these and other questions becomes a team matter. Accountability exists. People conduct themselves according to the values of the firm. Partners that have addressed the emotional trust issues in their firms are having more fun, improving their firm culture and also their profitability.

There are concrete steps that a firm can take to improve the element of trust within its organization and therefore improve the firm’s ability to successfully address its issues.

If you’d like to discuss this, please give me a call - 505.331.9100