Communication practices of certified public accountants.

Rollins, M. Wayne ; Lewis, Stephen D.

INTRODUCTION

Rapidly evolving technology has revolutionized the way many businesspeople communicate. Business letters, memorandums, and telephone calls, once a staple means of communicating in business, today have almost become passe in some companies. Time and space considerations no longer seem relevant. Instantaneous interaction via the Internet means questions can be answered and information can be provided at a moment's notice. Business meetings involving two or even multiple individuals may be conducted without any of the participants leaving their offices, thus saving some companies untold thousands of dollars in travel costs. Likewise, businesses may realize substantial savings in supplies and storage costs since so many documents can be created, distributed, and stored electronically. But are all segments of business enthusiastic about various communication technologies and their applications to them personally or professionally? For example, is the technology popular among marketing managers but not so popular among more conservative business sectors, such as finance or accounting? Specifically, do Certified Public Accountants, many of whom are typically conservative by nature, use the latest technologies when communicating externally with clients or internally with associates?

Despite what might be the popular perception, Certified Public Accountants are not simply number crunchers. The CalCPA Education Foundation (2011) underscores the fact that CPAs are constantly in communication with other people, and communicating effectively can help them develop and expand client relationships as well as become recognized as experts in their field.

Garen (2007) cited significant opportunities available for CPAs to modernize their communications. "The Internet has changed how CPAs and accounting firms do everything, from communicating with clients to hiring and retaining employees" (para. 2). He notes that technology has eliminated the need for hiring all employees locally. Employees are able to perform many of their assignments while living in locations distant from the company's office. Hood (2010) provided examples pertinent to CPAs and the accounting profession in general regarding technology's impact on communication. Working with AICPA leaders and staff, he helped develop a set of questions germane to accountants in 2010. One question, in particular, related to technology: "How do we balance member needs and business realities when using technology to our competitive advantage" (question 8)? Indeed, are there special situations where selecting the right communication technology is important or even critical?

Communication was mentioned frequently by CPAs responding to an online survey about what respondents suggested they should do more often with clients (Telburg, 2007). Not surprisingly, respondents advocated more contact with clients and better listening to client needs. Perhaps somewhat surprising, especially for the current era, was that telephone calls and face-to-face communications were mentioned but no explicit references were made to communication technology.

CPAs as well as other business professionals must utilize their communication and technology skills if they are to be successful. Brelsford (n.d.) emphasizes the importance of professionals communicating their differences from potential competitors. He further stresses the importance of CPAs using websites to communicate their services since "over 70% of adults begin their search for local services by searching the Internet" (para. 6).

Communication skills are essential for individuals seeking to become CPAs. The South Dakota CPA Society (n.d.) recommends on the "Students" page of its website that students become proficient communicators, both in writing and speaking. Knowing that CPAs must interact with clients, employers, associates, and various organizations and government entities, students whose goals include becoming a CPA are encouraged to hone their written and oral communication abilities. The Society stresses the importance of good listening skills since CPAs spend substantial time interacting with one or more individuals. Similarly, students are encouraged to perfect their technology skills as a means of progressing within the profession.

Garen (2007) stated that, despite its benefits, Internet access is still not accepted by all accounting firms. "... much like the green eyeshade and the quill pen, these firms will soon become relics of a nostalgic past" (para. 17). Of course, contemporary technology extends well beyond the Internet. As businesses become more global in nature, technology will play a major role in their operations. Results of this study should shed light on current communication practices of CPAs.

Watkins (2005) observed that requirements of the Sarbanes-Oxley Act have resulted in Certified Public Accountants "... making more oral and written presentations than ever before to more diverse groups, including audit committees and department gatherings" (para. 1). She emphasized the importance of CPAs having good writing and speaking skills and how these skills impact the perceptions of those people with whom they must interact. This research sought to determine how contemporary CPAs communicate orally and in writing to various stakeholders.

PURPOSE

Recognizing the necessity for effective communication in all types of businesses and at all levels within business, this study was conducted to discover how today's Certified Public Accountants communicate. More specifically, the purpose of this research was to determine the extent to which various communication channels are currently used by practicing CPAs and to identify the frequency that certain communication channels are used by CPAs to communicate both externally and internally.

METHODOLOGY

Current telephone directories were acquired for the four largest metropolitan regions in Tennessee, which included the Greater Chattanooga, Knoxville, Memphis, and Nashville areas. The researchers assumed that all viable CPA firms in those cities would have a telephone listing in the yellow pages. A total of 759 CPA firms or individuals were listed in the yellow pages of the four directories (C = 165, K = 126, M = 216, N = 252). Consultation with a statistician revealed that a minimum of 100 responses would be necessary to ensure representativeness. A list was developed with all firms included, and a systematic sample was taken with every third firm chosen to receive the survey. This resulted in a sample of 253 firms (C = 55, K = 42, M = 72, N = 84). The study was approved by the Institutional Review Board at the researchers' institution.

Instrumentation

A questionnaire was developed consisting of 31 statements related to channels CPAs might use to communicate within and outside their firms. Survey respondents were asked to indicate the frequency with which they communicated using each of the methods. The frequency of choices for each communication channel included never, yearly, quarterly, monthly, weekly, and daily. Individual demographic information was also requested. The survey instrument was mailed to three local CPAs for completion to determine if instructions and statements were clear. No issues were identified with the questionnaire.

Procedure

In an effort to maximize the number of responses, telephone calls were made to each of the 253 selected firms asking that a CPA complete and return the questionnaire. Several firms employed multiple CPAs and were asked to have more than one person complete a survey. A few firms had as many as three individuals who agreed to participate. Participants were given the choice of receiving the questionnaire by U.S. Mail, e-mail, or fax. Those who chose U.S. Mail were sent a questionnaire with a postage-paid return envelope. Telephone contacts and questionnaire mailings were completed in November 2010 through January 2011. Usable surveys were received from 134 CPAs. Statistical analyses of the data were completed using Minitab software.

FINDINGS

Table 1 presents the demographic data for all respondents. Interestingly, male CPAs outnumbered women CPAs by more than two to one; and approximately 70% were 41 years old or older. For the vast majority the highest education level attained was a bachelor's degree (85 or 64%), and respondents holding either a bachelor's and/or master's degree accounted for fully 95% of the total. Perhaps expectedly, the largest segment of firms employed only 1-3 people, and more than half employed 10 or fewer people. Quite amazingly, 13 firms (10%) employed over 100 people.

Table 2 provides statistics for communication tasks that respondents complete on a daily basis. A chi-square contingency test for each of the five statements in Table 2 showed a Z-value significant at the 0.001 level when testing the hypothesis that a majority of the population performed the tasks daily. The 95% Lower Bound provides the lower limit of the actual population percentage. Interestingly, for writing/receiving e-mails to/from persons outside your business/office, 120 of 132 survey respondents indicated that they performed this task daily. Sample percentages (Sample p) for the five statements ranged from 64% for providing feedback to co-workers, subordinates, or supervisors to 91% for writing/receiving e-mails to/from persons outside the business office.

A vast majority of the respondents cited seven communication activities from the survey that they never complete. Table 3 displays the results of the chi-square contingency test for the seven activities. The most dramatic responses resulted from statements regarding twittering clients and twittering colleagues/subordinates/superiors. Sample percentages for those activities were 99% and 98%, respectively. Z-values for all seven items indicated significance at the 0.000 level.

No significant differences were found when frequencies of communication tasks were compared by gender. However, when certain frequencies were combined, significant differences were noted. For example, daily and weekly frequencies were combined for responses to using Facebook or other social networking tools, which resulted in a significant difference with men being more likely to use those tools for business purposes (Z = 2.02, P-Value = 0.044). Similar results were observed for leading group meetings, which showed men more likely to participate in this task on a quarterly or yearly basis (Z = 2.70, P-Value = 0.007. Data showed that women write significantly more reports when daily and weekly frequencies are combined (Z = 2.06, P Value = 0.039).

As was found when communication task frequencies were compared by gender, likewise no significant differences were found when the data were analyzed by education level attained; but also as with gender, combining education level categories did show significant differences. For instance, CPAs with a master's degree or higher were more likely to write proposals to prospective clients than were those with bachelor's degrees or less (Z = 2.00, P-Value = 0.001). Those with a master's degree or higher were more likely to lead group meetings when meetings were held monthly or less often (Z = 3.54, P-Value = 0.000); they were also more likely to participate in group meetings held daily or weekly (P-Value = 0.013). Finally, CPAs with a master's degree or higher were more likely to use teleconferencing or video conferencing on a yearly basis (Z = 2.23, P-Value = 0.026), and spent more time listening on a daily or weekly basis to co-workers, subordinates, or supervisors than did those with a bachelor's degree or less (P-Value = 0.005).

REFERENCES

Brelsford, B. (n.d.). 9 marketing mistakes CPAs, accountants, and attorneys make. Professional Services Marketing Blog. Retrieved February 22, 2011, from http://www.rebarbusinessbuilders.com/2009/05/ 9-marketingmistakes-cpas-accountants-and- attorneys-make/#comment-3933.

CalCPA Education Foundation. (2011, February). Beyond the numbers. Retrieved February 22, 2011, from http://www.calcpa.org/Content/ yourcareer/numbers.aspx.

Garen, K. (2007, May). The Internet: revolutionizing how CPAs do business. The CPA Journal [online]. Retrieved February 22, 2011, from http://www.nysscpa.org/ cpajournal/2007/507/perspectives/p12.htm.

Horn, T. (2010). Ten powerful questions for the CPA profession in 2010. Ledgerlink. Retrieved February 22, 2011, from http://ledgerlink.monster.com/benefits/ articles/524-ten-powerful-questions-for-the-cpa profession-in-2010.

South Dakota CPA Society. (n.d.). Retrieved February 22, 2011, from http://www.sdcpa.org/ displaycommon.cfm?an=4.

Telberg, R. (2007, July). What do clients want? Mostly, "more." AICPA Store. Retrieved February 22, 2011, from http://www.cpa2biz.com/Content/media/ PRODUCER_CONTENT/Newsletters/Articles_2007/ CPA/July/want_more.jsp.

Watkins, K. (2005, April). Will they throw eggs: How to speak with professionalism and pizzazz. Journal of Accountancy. http://www.journalofaccountancy.com/ Issues/2005/Apr/WillTheyThrowEggs, Retrieved 2/25/11.

M. Wayne Rollins, Middle Tennessee State University

Stephen D. Lewis, Middle Tennessee State University

Table 1. Demographics of Respondents (N/%) *

Gender                      Female         Male        Total

                           40 (30%)      93 (70%)       133a

Age                          21-30        31-40        41-50

                            11 (8%)      30 (23%)     28 (21%)

Age                          51-60       Over 60       Total

                           37 (28%)      27 (20%)     133 (b)

Highest Degree Received   High School   Associate   Bachelor's

                            2 (2%)        3 (2%)     85 (64%)

Highest Degree Received    Master's    Doctorate     Total

                           42 (31%)      1 (1%)       133c

Number of Employees           1-3         4-10       11-25

                           44 (33%)     23 (18%)    30 (23%)

Number of Employees          26-50       51-100     Over 100     Total

                           19 (14%)      3 (2%)     13 (10%)    132 (d)

* All percentages are rounded.

(a) One respondent did not indicate gender.

(b) One respondent did not indicate age.

(c) One respondent did not indicate highest degree received.

(d) Two respondents did not indicate number of employees.

Table 2. Communication Tasks CPAs Complete on a Daily Basis

Communication Activity                    X     N    Sample p

Writing/receiving e-mails to/from        120   132   0.909091
persons outside your business/office

Writing/receiving e-mails to/from        94    131   0.717557
persons within your business/office

Listening to co-workers, subordinates,   104   133   0.781955
or supervisors

Providing feedback to co-workers,        86    134   0.641791
subordinates, or supervisors

Answering voice mail                     109   134   0.813433

                                           95%
                                          Lower     Z-Value   P-Value
Communication Activity                    Bound

Writing/receiving e-mails to/from        0.867934    9.40      0.000
persons outside your business/office

Writing/receiving e-mails to/from        0.652860    4.98      0.000
persons within your business/office

Listening to co-workers, subordinates,   0.723062    6.50      0.000
or supervisors

Providing feedback to co-workers,        0.573661    3.28      0.000
subordinates, or supervisors

Answering voice mail                     0.758078    7.26      0.000

Table 3. Communication Tasks CPAs Never Complete

Communication Activity                     X     N    Sample p

Twittering clients                        130   131   0.992366

Twittering colleagues/                    130   132   0.984848
subordinates/superiors

Using Facebook or other social            107   132   0.810606
networking tools for business purposes

Using LinkedIn to exchange information    88    132   0.666667
with colleagues/customers/clients

Using a chat room to obtain information   124   132   0.939394
from colleagues

Using a message board to obtain           116   132   0.878788
information from colleagues

Writing/speaking to individuals in        94    134   0.701493
another country/culture

                                            95%
                                           Lower
Communication Activity                     Bound     Z-Value   P-Value

Twittering clients                        0.979858    11.27     0.000

Twittering colleagues/                    0.967360    11.14     0.000
subordinates/superiors

Using Facebook or other social            0.754511    7.14      0.000
networking tools for business purposes

Using LinkedIn to exchange information    0.599178    3.83      0.000
with colleagues/customers/clients

Using a chat room to obtain information   0.905234    10.10     0.000
from colleagues

Using a message board to obtain           0.832062    8.70      0.000
information from colleagues

Writing/speaking to individuals in        0.636470    4.66      0.000
another country/culture