Small Business Resources, Business Advice and Forms from AllBusiness.com

Reader Mailbag

By Voss, Jill R
Publication: Inside Public Accounting
Date: Thursday, July 1 2004

Editor:

Regarding the article "Outsourcing of Tax Returns Overseas Gains Popularity; Most Firms Plan to Increase Outsourced Returns Next Year," in your May, 2004 issue, I am bothered by some of the facts stated.

When 50% of the firms surveyed do not tell their clients about the outsourcing

of their returns overseas, they are in clear violation of the Gramm-Leach-Bliley Act. Furthermore, the 16% of the firms who sugarcoated their actions are not any better than the 50% of the firms who don't disclose their actions to their clients.

Later in the article, Bruce Carlin mentions that the big benefit of outsourcing is not about making money. He's right: It is not about making money, but rather saving money on an entry-level graduate who would love an opportunity to work at a firm whose gross revenues range from $12.5 million to $90 million. Our economy has been in rough shape for the last three years, and people are going to college to find jobs for themselves. When firms such as the ones in your survey have the arrogance to ship out jobs that new graduates could take, and who could benefit the firm for longer than just four months, it just doesn't make sense.

Finally, Allan Koltin's comment about "screw[ing] up peoples' lives for four months a year and still expect [ing] young people to want to become part of public accounting is ridiculous. How are young people able to become a part of the public accounting sector when they find that all of the entry-level jobs have been outsourced to India?

Jill R. Voss, Manager-Client Services

The CPA Exchange, Lincolnshire, Ill.

Mr. Carlin responds: "First of all, our firm does disclose to clients that their work is being outsourced. Secondly, I don 'I know where all these entry-level graduates are that Ms. Voss refers to. Perhaps they're in Illinois, but they aren't in New England, where our firm is. There's a shortage of accounting graduates, and all signs indicate that the shortage will become worse. If we could find enough entry-level accounting graduates who wanted to do this kind of work, we'd certainly hire them rather than outsource to India." Mr. Koltin responds: "I'm not sure 47,000 other CPA firms would agree with Ms. Voss, who works for a recruiting company and not for an accounting firm."

Editors Note: INSIDE Public Accounting welcomes letters to the editor. Send yours to Letters To The Editor, INSIDE Public Accounting, 3340 Peachtree Road NE, Suite 2600, Atlanta, GA 30326. Or e-mail jlindy@hudsonsawyer.com with the subject line: Letter To The Editor.

AUTHOR_AFFILIATION

Jill R. Voss, Manager-Client Services

The CPA Exchange, Lincolnshire, Ill.

In addition, make sure to read these articles:

  • OPINION: LETTERS
  • E-mail letters@supplymanagement.co.uk, fax on 020 7296 4215, or write to Letters to the editor, Supply Management, PPL, 1 Benjamin Street, London EC1M SEA NEXT DEADLINE: ......
  • LETTERS
  • E-mail letters@supplymanagement.co.uk, fax on 020 7296 4215, or write to Letters to the editor, Supply Management, PPL, 1 Benjamin Street, London ECIM SEA NEXT DEADLINE: ......
  • Letters
  • IMAGE ILLUSTRATION 1 E-mail letters@supplymanagement.co.uk, fax on 020 7814 0981, or write to Letters to the Editor, Supply Management, PPL, 17 Britton Street, London ECIM ......
  • Letters to the editor...
  • Dear editor Although for the last five years my career change has taken me away from the hospitality industry to engineering and manufacturing, I still ......
  • LETTERS TO THE EDITOR
  • Many ways to design As a nonregistered architect/designer, I have followed with interest the debate over relative competency in these pages. I have no quarrel ......
  • Letters to the editor
  • Reader Praises Opera House Story I am grateful [to your magazine for] featuring our Minden Opera House renovation project. (See the Sept. 9 issue of ......
  • Reader Mailbag
  • Editor: The fact that Mr. Carlin's firm discloses outsourcing to their clients does not address Ms. Voss' point. (see Reader Mailbag, July 2004.) The issue ......
  • inbox: letters to the editor
  • Ins and Outs of Social security ...
  • Letters to the editor
  • Sir, What does a member have to do to be excluded? Over the years I have reminded the Institute and the Society to stress to ......
  • letters TO THE EDITOR
  • SEEING SEARCH I'm writing a paper about the future of Internet search engines, read your column "Search Show Offs" [June 2003, p. 27/, and wanted ......
  • inbox: letters to the editor
  • Support for the SET Tax Proposal Lou Grumet's proposal, that everyone be required to file a tax return (Publisher's Column: "Fixing the Income Tax: Transparency ......
  • Letters to the editor
  • DO THE MATH Dear Mr, Boeri: Your article, "Content-centric XML: Where We've Been, Where We're Going in 2003", in December's EContent inspired me to write....
  • N.H. Paper is First in the Nation -- in Letters to the Editor
  • So you think your newspaper prints a lot of letters? The Union Leader in Manchester, N.H., announced today that it published more than 5,100 letters ......
  • Letters to the editor.
  • Sensitive to the impact of Enron's collapse on the accounting profession's image, as well as possible legislative restrictions on the profession, some readers thought the ......
  • Letters to the Editor
  • The Regional Economist welcomes feedback from readers. To send a letter electronically, go to www.stlouisfed.org/publications/re. You can also write to Howard J. Wall, editor, The ......