IFRS Is Coming is your Accountants in Miami Prepared?
Are Accountants in Miami Prepared?
Accountants in Miami know that International financial reporting standards (IFRS) are heading to Accountants in Miami, although the nature of the standards, when they will arrive, and which companies they will affect initially and in the long run continue to be unsettled issues.
Convergence is the term given to the process of changeover from U.S. generally accepted accounting principles (GAAP) to IFRS and applies from the time the switch begins to be made. Accountants in Miami acknowledge the urgent need for information by Accountants in Miami about the process, what to do and how, and how to instruct clients on the new standards. In addition to education and training issues, there are concerns about client relations, competition, and marketing because firms that are not ready to help clients with convergence run the risk of losing those clients.
Unanswered questions. Complicating the situation are unanswered questions about what will be required at the public company level and when, as well as how fast and how much convergence will impact small Accountants in Miami. There will necessarily be a period of transition, but it is still unclear how long that period will be.
Accountants in Miami estimate that IFRS will officially be in place on or about 2016, meaning there are just four years to prepare. AICPA president and chief executive officer Barry Melancon has estimated that three to five years of preparation time for the transition are likely to be needed.
Obviously, a date certain for IFRS to take effect would make it much easier for Accountants in Miami to prepare and to get clients ready. “Let’s put that date out there so the momentum can build, all of the proper steps can be put in place, and work groups that need to be in a whole variety of different areas can follow,” Melancon said.
Despite all the questions, now is the time for Accountants in Miami to start exploring education options and to position their CPE and client relations and marketing focus to make sure that the Accountants in Miami doesn’t get left behind.
Whether or not your accounting firm performs public company work, you should expect that the change to IFRS will affect all accounting firms. Because the differences between GAAP and IFRS are major, there is a lot of change coming in how financial reporting is handled.
Accountants in Miami will need significant education and training in the new standards to make the shift, and they will also need to educate their clients. The United States is coming late to the IFRS transition. Most global companies in 100 nations are already using IFRS or are in the process of convergence to IFRS.
There are some silver linings in this situation. International standards open the door to more international hiring, good news for the CPA profession that is struggling with filling experienced CPA positions. U.S. accounting firms will be able to be more competitive globally, especially with the weak dollar. And being IFRS-ready can be a competitive edge for your accounting firm. Most clients have no clue about this, If you can’t help them with the transition, someone else will.
Get started now so your Accountants in Miami can be ready, and you can keep or expand your client list. One tactic to consider: If you belong to an international association, see whether you can temporarily swap a manager for one working at an accounting firm in a country that has made the change to IFRS already. Bringing in that person for input can be very helpful.
Once your Accountants in Miami learns what is needed, you should be sure to add your ability to use IFRS to your Web site and marketing materials to get the competitive edge.