SPOTLIGHT

t’s a well-known fact that children who are talented in music also tend to be great in math. So Barry Bender surely is not the only CPA who has two master’s degrees, one in music and one in accounting. This March he got the opportunity to work on both of his favorite subjects, as he split his time between finishing up clients’ tax returns and fulfilling his dream of producing and releasing an album of his own.

Like fellow musical CPA Kenny G, Bender considers himself a saxophone player—though he also plays keyboard, guitar, bass and drums when he’s not teaching accounting and business at Rowan University and Richard Stockton College in New Jersey. And while “Life (and Jade)” has not yet made it to the top of the charts, Bender isn’t looking for fame. He’s donating all proceeds from the album ($12 each at www.barrybender.com ) to the Leukemia and Lymphoma Society in honor of a stricken friend.

“As an accountant I know that if I factor in all the courses I’ve taken and the instruments I’ve bought”—not to mention the full recording studio in his basement—“music is not a money-making proposition. I definitely have a debit balance in my music equity account,” he says. “But for me, it’s about being creative and having fun.”

—Cheryl Rosen

CONSUMER ALERT

No longer just for big spenders, credit cards more and more are being used for small purchases such as sodas, pretzels and candy bars.

Two years ago cashless transactions were introduced at fast-food restaurants; now such “microtransactions” are hitting the Coke machines. But consumers beware: A survey by USA Technologies ( www.usatech.com ) revealed people spent 50% more at vending machines when they could pull out a credit card instead of digging for change.

The average credit card purchase ($2.33) from vending machines at airports, train stations and roadside rest areas was 52% higher than the average cash purchase ($1.53). At theme parks, zoos, museums and theatres, the average purchase using a card was $3.29 compared with $1.81 using cash (an increase of 82%). In office buildings the average vending machine purchase rose to more than $1.00 (an increase of 28% over a cash transaction) when it was charged.

—Federal Reserve Chairman Ben S. Bernanke, April 27
testimony to the Joint Economic Committee of Congress.

“As the utilization rates of labor and capital approach their maximum sustainable levels, continued growth in output—if it is to be sustainable and noninflationary—should be at a rate consistent with the growth in the productive capacity of the economy. Admittedly, determining the rates of capital and labor utilization consistent with stable long-term growth is fraught with difficulty, not least because they tend to vary with economic circumstances. Nevertheless, to allow the expansion to continue in a healthy fashion and to avoid the risk of higher inflation, policymakers must do their best to help to ensure that the aggregate demand for goods and services does not persistently exceed the economy’s underlying productive capacity.”  

NUMEROLOGY

Don’t get hooked by scamsters “phishing” for your personal information through help-wanted e-mails.

1 | Always proceed with caution when you receive a cold-contact e-mail from someone purporting to be a recruiter. Instead of clicking on the e-mail link, go to the company’s Web site directly to verify its legitimacy.

2 | Avoid responding to any requests for personal information such as your Social Security or credit card number.

3 | When dealing with a resume writing or submission service, ensure information is encrypted before hitting the “submit” button. Encrypted Web sites either begin with the root URL “https” or have a padlock icon that appears in the bottom right corner of your screen.

4 | Read and understand the privacy policy of the Web sites you patronize.

5 | Report anything suspicious to the Internet Fraud Complaint Center ( www.ic3.gov ).

Source: Resume to Referral, Springfield, Ohio, www.resumebycprw.com , 2006.

SURVEY SAVVY

ith retirement approaching, 26% of baby boomers expected to live very comfortably and others (29%) said they’d meet expenses with a little left over. The remaining 41% foresaw either just meeting their basic living expenses or not having enough even for that.

What retirement income were they all banking on? Almost half (49%) had 401(k) and IRA savings, and 40% are counting on Social Security or employer pension plans. The remaining 11% either had other savings or didn’t know.

Source: Pew Research Center survey of 968 respondents, age 41 to 59, http://pewresearch.org , 2006.  

How can travelers minimize the problems of lost luggage? You can wear multiple layers of clothing or try to put everything into your carry-on bags and fit them into already jammed overhead bins. Or you can buy insurance. Travelers can find insurance plans to reimburse them for

Lost or stolen baggage.
Repair of damaged bags.
The purchase of essential items if baggage is delayed.
Accommodations and travel expenses if lost luggage results in delays of six hours or more.

When purchasing insurance to cover lost luggage and other travel perils, the U.S. Travel Insurance Association advises consumers to make sure the policy offers the protection they are seeking and to look for insurance companies that are members of the nonprofit group, as they have agreed to abide by a code of ethics and professional principles. The group’s Web site, www.travelinsurance.org , lists companies that meet these standards.

Tip : On your outbound flight, add a paper luggage tag—available at airline ticket counters—with the address of your destination. If your luggage is lost or delayed on this leg of the trip, it may help you recover it faster.

BOOKMARKS 

By Thomas W. Golden, Steven L. Skalak and Mona M. Clayton
576 pages; hardcover
John Wiley & Sons, 2006

I n A Guide to Forensic Accounting Investigation, forensic accountants and auditors Thomas W. Golden, Steven L. Skalak and Mona M. Clayton explore what assurances auditors should provide in a post-Sarbanes-Oxley world. The book reveals the surprising complexity of fraud deterrence, detection and investigation, and offers a step-by-step approach to dealing with it. From basic techniques to intricate tests and technologies, this useful volume answers the need for wiser, better-trained financial statement and internal auditors who are thoroughly trained in fraud detection.

—Michael Hayes

Regardless of income level, 66% of boomers felt responsible for paying their children's college tuition.

Source: Pew Research Center survey of 1,117 respondents age 41 to 59, http://pewresearch.org , 2006.

1 | Play “Follow the leader.” Managing partners set the tone for everything, good or bad, that takes place in the firm. It’s important for leaders to keep their focus on the client rather than internal politics and ego gratification.

2 | Remind employees of their mission in the organization. A quick daily meeting can set the tone of the workweek and be a source of inspiration in a firm of any size. A constant conversational reminder will ground employees in their primary cause in the firm.

3 | Shine a spotlight on staff. Give employees the attention they deserve. Honor individuals who go above and beyond their job descriptions and truly delight clients. This sets the pace for others to follow.

4 | Invest in your staff. Make sure they are consistently well-trained, motivated, mentored and equipped with the proper tools to serve clients.

5 | Realize that smart firms learn from their mistakes. Be honest and open about why a specific aspect of client service failed. Mistakes are important because they lead to discussion and innovation. Managing partners must outline clear actions that will remove the causes of the organization’s failures and then take steps to follow through.

6 | Form a focus group. Bring together a small, carefully selected group of people to explore perceptions about a product or service your firm is offering, so you’re more able to make well-thought-out decisions.

7 | Keep clients informed of improvements. When you make a change or innovation, communicate it to clients. If clients don’t realize there’s been an improvement, there is no improvement.

Source: Adapted from Becoming a Customer-Focused Organization by Craig Cochran, Paton Press, 2006.