Category Archives: Academics

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Academics, Career, Employment, Events, MPA Council, MPAC, Recruiting, Student Life

First Impressions

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First impressions are important because they always last, and the same goes for my entrance to the MPA program. Notwithstanding a brief visit last fall and interacting with career services over the summer, my first impression of the actual MPA program began just a few weeks ago when all the new Traditional MPA students met, many for the first time. It was orientation week, and we were finally starting the journey we had been planning and anticipating for several months.

As we all gathered in the large banquet hall set aside for the first day, I was nervous about the people I would soon meet. What was everyone going to be like? Where was I going to fit in? Quickly, the fear passed to excitement as I began introducing myself to my new classmates. I’ve always enjoyed meeting new people, and there was no shortage of interesting backgrounds to discuss. Various schools, different areas of the country, and multiple nationalities were represented in the newest cohort. One thing we all had in common was our ambition to succeed and the stuff to make it happen.

Most of orientation week was centered on career services and academic planning. Vinh Nguyen spent time speaking with us about the different career paths available to MPAs. The “industry, audit, or tax” question could be a dissertation on its own, but it was something that many of us were still struggling with as we approached our first day of class. We had the chance to meet our professors at a breakfast and then hear their perspective on the “industry, audit, or tax” question. Also thrown in the mix were several events where we had to make our first impression on potential future employers: an etiquette dinner, a networking reception, and a career fair were all on the bill for the first week. We even had a chance to socialize as a class at a pizza and bowling party thrown by the MPA Council.

Back to first impressions, though. The professors are clearly passionate about what they do, and it is evident that they are proud to be a part of the MPA program. I’m sure you are aware of how big of a difference it makes when a teacher is excited about what they are teaching, and these folks have it. The career services department is top notch from their support and preparation to facilitating interaction with future employers. I ended the week with a pleasant optimism about my job prospects. The students I will be learning alongside are an extraordinarily bright and diverse group of fun people. The connections I made that week are sure to last a lifetime. Hopefully I left a good first impression on a few people, too!

Academics, Career, Sarah

Lessons from McCombs

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In the name of full disclosure, I have an obsession with Facebook. Not with posting statuses and pictures and monitoring my news feed (although I waste plenty of time on that as well), but with the company itself; its business model, and, of course, its fascinating CEO. I get excited every time a new article about Facebook pops up in the paper or in Fortune (which at the student rate, is probably one of the best splurges I’ve made in college), and I spent weeks monitoring the the stock price after the IPO – y’know, just for kicks.

So naturally, I also have an obsession with the not-so-official movie, The Social Network. My favorite part of watching this movie is picking through the drama and finding the concepts and lessons that do or don’t match up with what I’ve learned at McCombs – which leads me to…

3 Lessons from The Social Network that McCombs Taught Me Better

1. The value of a good idea – Although the value of the site certainly came from the coding and developing, the Facebook we know and love today wouldn’t have been possible without the “ wouldn’t-it-be-cool-if” idea that started it all. Beyond business law discussions about the legal implications of intellectual property and the accounting concepts of intangibles and R&D, McCombs professors have always been quick to point out that not all valuable assets show up on the balance sheet. You often have to look past the financial statements to see a company’s potential.

2. Persistence pays off – Admittedly, in the movie, the development phase of the website didn’t get a lot of screen time, but that’s definitely not to say that it was trivial. What does show up in the movie is the never-ending coding and updates and the refusal to settle on “good enough” when improvements can still be made. From classes, to recruiting, to informal conversations with professors, these themes have been drilled into my brain from the moment I set foot in McCombs.

3. It’s not all about the money – Although some might disagree that this was really the point of the movie, the social, legal, and ethical consequences of money-driven actions were undeniably pervasive in The Social Network. One of the greatest things about McCombs, and the MPA program in particular, is the constant discussion of ethical implications in business decisions. We hear it again and again in business law, the accounting lyceum, and inevitably in almost every course. Money is what makes the business world run, but it’s not the only thing to consider.

Academics, Alexandria

Accelerated Classes

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Accelerated classes can sometimes feel like learning in hyperspeed

Integrated students in the MPA program have an interesting spring semester during their 4th year. For most students, the semester is made up of a combination of a public accounting internship and accelerated classes. My fellow bloggers Jamal and Melissa have been telling their exotic tales of life as an audit intern, because their semester starts with an internship, and they will eventually come back to take their accelerated classes. Tax students, however, start their semester with accelerated classes and then move onto their internship. This means that my fellow 4th year tax iMPAs have been lost in textbooks while our audit friends are getting a taste of the real world.

My fellow tax MPAs and I had to start school on January 2nd. I can’t speak for everyone that was taking the tax accelerated classes, but it was a struggle coming back from a very short winter break and having to sit in 5 hours of lecture for three days straight. The first day back got even harder when in our corporate tax class, Professor Zvinakis announced “The best way to describe the workload in this class is… stunning.” She did ease the burden of the first day back by having Tiff’s Treats, but boy, she was in no way lying about the workload of her class.

I don’t think I have ever had to work so hard to stay afloat in an MPA course. The frequent homeworks, reading assignments, projects, and tests were mentally and physically taxing (pun completely intended). That being said, I have never learned so much in such a short period of time, and it was kind of nice to just completely immerse myself into a new subject. I also I feel I got a lot of hands on experience by being challenged to conduct frequent tax research and complete an expansive tax return for a corporation.

I also really appreciated the class because I feel Professor Zvinakis went above and beyond the call of duty to help us understand the material in a short period of time. First of all, she hosted review sessions that provided us with additional hands on practice of the concepts we were learning in class, despite the fact that she taught for five hours previously. I mean, I’m sure we have MPA faculty that love tax with every fiber of their being, but 6 hours of teaching tax has to be… taxing (sorry guys, I couldn’t resist. The pun ends here, I promise). On top of the additional optional review sessions, there were ample opportunities to ask questions in office hours each day Monday through Thursday.

On a more personal note, I really enjoyed this class because this is the first time in a long time my learning style has been addressed in an accounting class room. What I mean by that is that I have always been very much a big picture person and have had a hard time processing small details (which is just dandy in tax…. Believe me, I have tried to convince myself to pursue something else, yet tax simply fascinates me). But Professor Zvinakis not only taught the little details of corporate tax law, but also connected provisions to current tax policy, and clearly illustrated how certain little details can make huge economic effects.  Tax policy and its effects on the economy is the main reason I am truly fascinated by tax, and what drove my decision to become a tax-track MPA. All the work I was did to process the finesse of corporate tax law helped me understand the reasons that led to certain economic effects and I found it to be reassuring and rewarding.

All in all, it was a fantastic experience, but I am so glad to be done!

Academics, Internships, Student Life

Melissa Takes Boston: Part 2 (Lessons from Beyonce)

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Did everyone have a happy Super Bowl weekend? (Or happy Beyonce weekend to those of you whose interests align more with mine.) Beyonce has been very popular in entertainment news recently with the lip syncing controversy and as headliner for the Super Bowl halftime show. I thought I would take some time to share some of my favorite (and applicable) lessons we, as MPA students, can learn from Beyonce.

1. No one can tell you that you can’t succeed. One of my favorite quotes is, “If you hear a voice within you say ‘you cannot paint,’ then by all means paint, and that voice will be silenced.” – Van Gogh. I think this quote can be extended as a solution to any voice you hear that tells you that you cannot succeed. As students at the University of Texas, members of the MPA program, and even interns in the field, there will always been someone who does not believe we can succeed. (Even if it is ourselves.) Looking at the Beyonce lip-syncing controversy, when she was criticized for her inaugural performance, she retaliated by singing the National Anthem at the start of the Super Bowl Press Conference. As you go through school and our internships, you have to remember that no one can tell you that you can’t succeed. And when they do, because they will, then prove them wrong.

2. “You know it costs to be the boss. One day you’ll run the town.” I have always found this lyric of Beyonce’s to be particularly interesting but I find it more applicable as I get further into my education. Classes can be overwhelming sometimes and I know I am not the only one who has dramatically questioned if it is all worth it. As we go through intense classes and now a busy-season internship, we must keep in mind that these are all steps towards our goals. We may have some struggles along the way, but one day we’ll run the town. (and according to B, us girls will run the world.)

3. Image is important. Before I became a business student, I didn’t own a suit, and I had maybe one or two business casual outfits. Throughout recruiting and now during my internship, I am learning how important it is to ‘dress to impress.’ How you dress is often the first impression that others have about you. Although it is key to act professionally, you will not be taken seriously if you are not also dressed with professionalism. (Beyonce certainly always dresses to impress.)

Beyonce’s driven personality and inspiring songs are great sources for inspiration as we continue along our educational paths and soon into our careers.  Who do you look to for life lessons and what lessons have stuck with you?

Click here to read Part 3 of Melissa Takes Boston!

Academics, Pierre

Bitcoin for Accountants

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Most blogs, including ours, operate on the WordPress content management system, the most popular blogging platform in the world. Last year WordPress began accepting a new, secure digital currency called bitcoins for payments and donations. This new currency combines open source software with cloud computing to dramatically lower the cost and delay of transferring funds.

Bitcoins are bought with dollars, euros, and other conventional currencies on centralized exchanges much like any other liquid asset. The currency is currently in a bull market, with the price of one bitcoin increasing from $5 to almost $18 over the past year.

Once purchased, bitcoins are used to make payments for goods and services using a distributed transaction clearing system (PDF). Instantaneous fund transfers cost less than a penny and are free if rapid execution is not a priority.  The clearing system continuously broadcasts all transactions between anonymous addresses (hashes of public keys) using a “block chain” or public ledger; the equivalent of check clearing between bank accounts. This level of transparency, combined with modern cryptography (SHA-256 & ECDSA), prevents any tampering or double spending.

Over the last couple of months approximately 1,000 merchants started accepting bitcoins thanks to a start-up called Bitpay. This trend has been driven by the low costs and high security of the Bitcoin payment processing system as well as the monetary stability of the underlying bitcoin currency. Perhaps the greatest advantage of Bitcoin over the current payment system is “immediate funds transfer” or IFT. Rather than wait for overnight clearing through ACH, CHIPS, or SWIFT, payments can be deposited or disbursed instantaneously wherever there is an internet connection.

From a financial and tax accounting point of view, bitcoins are the same as any other foreign currency. However, from an auditor’s point of view they do present an unprecedented peculiarity: the entire system relies on cryptographic proof rather than human trust. It is important for auditors to understand how to verify bitcoin transactions and value a company’s inventory of bitcoins.

The public ledger is called the “block chain” because it is a series of “blocks” that contain information about transactions. All of the bitcoin transfers from one address to another that have ever occurred are recorded in the block chain. This is very convenient for auditors since transactions recorded in the company’s internal systems can be instantaneously verified by searching the block chain for the company’s addresses. The block chain can be downloaded at the cut off date from Sourceforge and its integrity can be checked using the open source Bitcoin client. Not only does the block chain make payment verification simple, it also dramatically reduces the risk of defalcation while simplifying internal controls and bank reconciliations.

It is important for accountants and corporate treasurers to be aware that all bitcoin transfers are recorded in a public ledger and that transaction patterns may reveal the identity of an address. An astute competitor or investors could quickly develop a cash-flow statement from such information. For this reason, it is best practice to generate a new address for each transaction.

Bitcoins are stored in a digital wallet after they are received. The wallet can be cloud-based for mobile payments and browser access or stored on a local system to maximize security. Treasurers should be careful to divide funds into several different wallets stored on separate systems. Managers that would normally sign and countersign checks should similarly be entrusted with the passwords to prevent unauthorized payments.

Once the physical system is properly secured, the only potential threat is the password. Management should have a password policy that balances security with the risk of one person being responsible for an unrecoverable password. Internal control designers and auditors should consult with an I.T. specialist to ensure that the wallet is stored and backed up on encrypted drives attached to dedicated systems.

Similarly, audit teams should employ an I.T. specialist to verify the bitcoin balances held in wallets. Verification includes sending a traditional confirmation letter to a 3rd party wallet custodian and obtaining the balance from the block chain. Tools like Block Explorer make independently authenticating the existence of individual bitcoins straightforward and instantaneous. Control of the addresses themselves can be evidenced with walk-throughs as well as bitcoin transfers to and from an address controlled by the auditors.

After the amount of bitcoins at the balance sheet date has been established, the auditors need to verify that this amount is translated into the reporting currency pursuant to ASC 830-20-25. The currency translation from bitcoins to dollars is effectuated through an adjusting entry that contains the gains and losses reflecting changes in the exchange rate between bitcoins and dollars. This translation must also be done for receivables and payables the company expects to settle in bitcoins. The exchange rate used for measurement at the balance sheet date, called the current rate, can be observed on liquid markets like Mt. Gox.

Cash management with bitcoin is now finally entering the Internet Age: payments are processed around the clock, anywhere in the world, and with little to no transaction costs. We can expect that this disruptive innovation will transform the treasury function just as much as social media transformed marketing campaigns. Does your business accept bitcoin payments? How do you think internal controls and audit planning should adapt to this new digital currency?