Career Path 3 – Specialist
By: Jeanne H. Yamamura, CPA, MIM, PhD and Wiley CPAexcel Author and Lecturer
CPAs interested in expanding their horizons have found ample opportunity in the booming areas of business valuation and information technology. CPAs’ knowledge of accounting complexities, business operations, and tax implications provided the perfect foundation for adding valuation and information systems expertise. For a host of reasons, ranging from Baby Boomers selling businesses to the continual onslaught of rapid technological change, these specialty areas are predicted to maintain a robust growth rate indefinitely into the future. Expertise in these areas is designated by the Accredited in Business Valuation (ABV) credential and the Certified Information Technology Professional (CITP).
Let’s take a closer look.
Business valuation experts help their clients determine what a business is worth. Typical clients require valuations for one of four reasons – estates and gifts, divorces, sale/investment, and litigation.
- For business owners, the business is likely the most valuable asset. Planning ahead to minimize federal and state taxes requires knowledge of the value of the business. Similarly, making gifts of business interests requires knowledge of the “fair market value” of the gift. Gifts that exceed exclusion limits result in the filing of a gift tax return and the payment of gift taxes.
- When one or both spouses own part or all of a business, even an uncontested divorce can require a business valuation. The true worth of the business must be determined in order to divide the marital property equitably.
- New investors buying into a business and owners seeking a buyout need the value of the business to determine how much to pay or how much should be received.
- Litigation among disgruntled parties who disagree on the value of a business can create full-time employment for business valuation experts as each group seeks support for the value that it believes is correct. Litigation may also involve the determination of economic damages.
In addition to all of the above, the increase in fair value GAAP reporting requirements has also boosted demand for business valuation experts.
CPAs with information technology expertise are increasingly on the front lines as the number of data “hacks” skyrockets. Not only are “hacks” embarrassing, they can cost an organization millions of dollars. But data security is just one of the areas that these CPAs specialize in. Consider the many ways that technology can impact an organization – from how business is conducted to protecting the organization’s systems and data to business analytics. Information technology CPAs evaluate and implement new technology to more efficiently manage operations. They perform risk analyses to identify critical data and to ensure the data are adequately stored and protected. Most importantly, these Chief Information Officers leverage technology to get the best information possible for their organizations.
Each of these areas of specialization begins with a strong business and accounting background and then adds to it. For business valuation experts, knowledge of economic modeling and other quantitative analytical techniques, adjustments for qualitative factors, and valuation approaches are essential. For information technology specialists, the understanding of technology strategic planning, information technology architecture, systems security, business process enablement, information reliability and control, and systems are key.