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Practice Profile: Art appreciation at LMC

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1 year ago

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LMC art practice partners Steven Goldglit and Michael Young

LMC partners Steven Goldglit (left) and Michael Young

New York-based Regional Leader firm LMC advises some of the world’s largest art galleries and artists, including some “one-percenters,” according to partner Michael Young — but the firm also prepares taxes for “starving artists.”

With Young, fellow art practice partner Steven Goldglit and their team on the case, these artists don’t always stay famished for long, as Young illustrated with the story of one particular client. “We had an artist approach us, and they said, ‘I’d like to hire you as my accountant,'” he recalled. The artist had been referred by another gallery, but when Young asked to look at their tax returns, “They said, ‘I haven’t filed a tax return in five years.’ I said, ‘Why not?’ and they said, ‘I didn’t make enough money.'”

Young told the artist the firm was willing to take them on, but warned them that they could find a lower-priced firm, to which they said, “‘I anticipate making good money in the coming years.'”

“The first year they engaged us they made half a million dollars,” he recounted. “The next year, $2.5 million. The third year, $4 million. They literally went from starving artist to multimillionaire in a few years.”

It’s a trajectory that Young and Goldglit witness in serving LMC’s fastest-growing speciality, and that both were familiar with before at both of their respective firms, which also specialized in art clients and were acquired by LMC, which itself is a member firm of private equity-backed platform Ascend.

Young’s previous firm was merged into LMC six years ago to create LMC’s first art practice, and Goldglit’s was added last August. Both came with a large roster of clients and years of experience in the industry.

Goldglit grew up in the New York City art scene, with his father’s firm that began in the 1960s and 1970s working with clients like influential art dealer Leo Castelli, known as “the godfather of the contemporary art world” and his gallery artists like Roy Lichtenstein and Andy Warhol.

After a tenure at Big Four firm PwC, Goldglit joined his father’s firm. “I grew up living the arts, being involved, going to museums and galleries,” Goldglit said. “It’s a really enjoyable aspect of accounting for me.”

LMC provides full-service accounting, tax, CAS, bookkeeping, and family office services, including back-office work that artists in particular need, according to Young, and the firm currently advises between 200 and 300 artists, and another 70 to 100 galleries.

These clients range from “galleries that can hardly break even to the most important galleries in the world,” Goldglit said. “My philosophy is always to work with artists, to never turn artists away,” he continued. “Starving artists — we’re always happy to work with them and help file tax returns and [show them] how to interact with galleries on the financial level. We have a broad spectrum of clients. The art community is quite large, and most people don’t know about it.”

The current art market

The community comes with unique challenges, especially in today’s climate. “The art market is challenging right now; the economy is in a little bit of a shift,” Goldglit shared. “The art market has gone really quiet. We’ve gotten calls from gallery clients: ‘What’s happening in the market? What are other gallerists doing? You have your finger on the market, are other galleries selling, or quiet?’ We know how to answer that, and continue to be supportive. A couple years ago, the art market was raging. Now, it’s a lot harder work to help manage finances more effectively.”

Tariffs are also a new hurdle. “Tariffs — not only now, but in 2019, in the first term of the Trump administration, there is always something new, something unexpected,” Young shared. “When the topic comes up to address, we have experts we can connect with.”

Goldglit and Young have witnessed many market fluctuations in their years serving the industry.

“Most of the galleries you know today — megasellers — there were not megasellers back then,” Young explained. “Typically a gallery in New York City [was run by] an entrepreneur. It’s a very small circle in the art world, everyone knows everybody. By word of mouth, I happened to engage one of the main galleries. My firm had seven of the top 10 galleries in New York City, or the world, 25 to 30 years ago. Some continued on from the 1990s, some merged. To this day, I still maintain a few of the galleries I had, legacy galleries from the 1990s.”

Still, the overall outlook is positive for the industry, they shared. “There is continuing growth in the industry, more galleries than ever before… and there is an opportunity for everyone,” reported Goldglit.

“New York City is the place to be,” added Young. “They typically started in New York, even those based overseas. If they decide to come stateside, New York is their first choice.”

With the growing international art market, LMC is poised to offer help with changing tax reporting standards, and everything from revenue recognition to foreign sales to IC-DISC (Interest Charge Domestic International Sales Corporation) federal income tax reporting and savings.

For LMC’s few clients in “really high-end art, the one-percenters,” explained Young, “they have very discreet transactions, and are very sophisticated purely in the dollar value of the paintings they are acquiring. These clients have residences all over the world, and sometimes purchase and maintain in the [United States]. They’re dealing with a lot of international tax issues, international accounting issues, there are a lot of taxes: sales tax, VAT … . Any type of scenario is likely to come up, and it keeps you on your toes.”

The firm’s practice must keep these clients up to date on all tax implications, Goldglit explained: “How to set up a gallery in the most tax-advantageous way without exposing clients to international tax problems. Sales tax is a big issue.”

While these emerging issues keep Goldglit and Young in constant communication with their clients, both also serve on boards and regularly attend events at galleries and museums.

Goldglit noted a dinner with one gallery on Wednesday and two art openings on Thursday when examining his calendar for the week. “I go to museums all the time,” he shared. “A number of artists’ museum shows, one at the Whitney, one at the Met. I’m on the board of a few artist-endowed foundations to support artists’ legacies … I’m a big fan of giving back as much as I can give.”

And while he reflected there were more openings and parties happening when he took over his father’s business in the early 1990s, they are still “a great way to grow the practice.”

He also finds them — and his work — to be a satisfying merger of two worlds. “The left brain, the right brain — [artists] are so creative, amazingly creative. I have no idea how they do it,” Goldglit marveled. “But a balance sheet — they can have no idea what that means.”

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Accounting

AI-Driven Automation and Continuous Accounting Frameworks

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1 week ago

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August 15, 2026

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The accounting profession is undergoing a fundamental structural transition as enterprise finance departments shift from periodic month-end closes toward automated continuous accounting models. By integrating specialized machine learning algorithms directly into enterprise resource planning (ERP) platforms, chief accounting officers are transforming financial reporting from a retrospective exercise into a real-time operational asset.

The Shift from Periodic Close to Continuous Financial Reporting
Traditional accounting workflows heavily relied on manual data reconciliation, spreadsheet calculations, and multi-week closing cycles at the end of each fiscal period. In contrast, continuous accounting frameworks utilize automated software agents to process, validate, and post transactional data in real time as business activities occur.

Automated bank reconciliation tools cross-reference incoming bank feeds, invoice records, and purchase orders automatically. By resolving transactional variances instantly throughout the month, corporate accounting teams eliminate the traditional workload spikes associated with quarterly and annual closes.

Machine Learning in Audit Trails and Anomaly Detection
Advanced natural language processing (NLP) and machine learning tools are redefining internal audit and financial control environments. Automated systems analyze 100% of general ledger entries, identifying anomalous transactions, duplicate payments, and unauthorized journal entries in real time.

Rather than relying on random statistical sampling, corporate internal auditors can focus their attention on high-risk flags automatically surfaced by algorithmic monitoring platforms. This continuous risk assessment strengthens internal controls over financial reporting (ICFR) and significantly reduces fraud risk.

Evolving Roles for Accounting Professionals
As routine data entry and manual reconciliation tasks become fully automated, the skill set required for accounting professionals is shifting toward data analysis, system design, and strategic business advisory.
– Systems Governance: Accountants are increasingly responsible for monitoring algorithmic accuracy and managing data integration pipelines.
– Business Partnership: Finance professionals leverage real-time financial dashboards to advise operational leaders on margin management and working capital allocation.
– Regulatory Compliance Management: Accounting teams utilize automated platforms to ensure compliance with dynamic tax codes and international accounting standards.

Core Implementation Recommendations
1. Deploy Automated Reconciliation Tools: Integrate continuous transaction processing modules into existing enterprise ERP architectures.
2. Establish Algorithmic Governance Controls: Implement strict internal testing protocols to ensure automated accounting rules comply with GAAP/IFRS standards.
3. Reskill Accounting Teams: Invest in training finance staff on data analytics, workflow automation, and predictive financial modeling.

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Accounting

Global ESG Reporting Standards and Double Materiality Compliance

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2 weeks ago

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August 9, 2026

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Corporate accounting departments face expanding reporting expectations as international sustainability disclosure standards achieve regulatory enforcement across major global jurisdictions. Chief Accounting Officers (CAOs) and corporate controllers are establishing rigorous internal accounting controls to treat Environmental, Social, and Governance (ESG) metrics with the same data precision, auditability, and governance as traditional financial statements.

Regulatory Harmonization Under Global Sustainability Frameworks
The implementation of standardized sustainability reporting frameworks—notably rules established by international sustainability accounting boards—has created unified expectations for public and large private enterprises. Corporations must report standardized metrics covering greenhouse gas emissions (Scope 1, 2, and material Scope 3), energy utilization, workforce demographics, and supply chain governance.

In Europe and other participating international jurisdictions, double materiality principles are mandatory. Under double materiality, organizations must report both how external sustainability risks impact corporate financial performance, and how internal corporate operations affect surrounding environmental and social structures.

Integrating Sustainability Metrics into Core ERP Systems
To provide auditable non-financial data, enterprise organizations are integrating specialized carbon accounting and ESG management platforms directly into core ERP systems. Automated data collectors capture energy utility invoices, logistics fuel consumption metrics, and vendor compliance records in real time.

Establishing automated, traceable data pipelines ensures that non-financial reporting is supported by clear audit trails. This structured approach allows external financial auditors to provide reasonable assurance on sustainability disclosures during annual corporate reporting cycles.

Financial Impacts and Capital Market Disclosure
Accurate ESG reporting directly influences corporate cost of capital and institutional credit ratings. Commercial lenders and institutional asset managers systematically incorporate sustainability metrics into risk pricing models. Companies that demonstrate transparent, verifiable progress in operational energy efficiency and climate risk mitigation benefit from expanded access to green bond markets and lower debt pricing.

Action Steps for Accounting Leadership
1. Implement Double Materiality Frameworks: Conduct comprehensive assessments to identify material financial and operational sustainability metrics.
2. Build Auditable Non-Financial Data Pipelines: Automate ESG data collection within core accounting software to ensure data integrity.
3. Align Sustainability with Annual Financial Filings: Prepare non-financial disclosures concurrently with financial statements to satisfy regulatory audit expectations.

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Accounting

Modernizing Internal Controls: Machine Learning and Continuous Monitoring in Auditing

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3 weeks ago

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August 5, 2026

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Internal audit departments and corporate risk managers are modernizing internal control frameworks by shifting from periodic sampling techniques to continuous monitoring and machine learning analytics. As operational data volumes increase across enterprise organizations, automated control testing ensures financial integrity, prevents corporate fraud, and streamlines annual audit engagements.

The Limitation of Periodic Audit Sampling
Historically, internal and external auditors evaluated internal controls by reviewing random samples of financial transactions—often analyzing less than five percent of total ledger entries. In complex enterprise environments, periodic sampling methods carry inherent risks of overlooking localized financial misstatements, unauthorized disbursements, or operational control breakdowns.

In 2026, progressive internal audit functions are utilizing automated continuous monitoring platforms that evaluate one hundred percent of financial transactions in real time. Continuous control auditing systems continuously monitor general ledger entries, procurement approvals, and expense reimbursements across all operating subsidiaries.

AI-Powered Fraud Detection and Anomaly Identification
Machine learning models trained on historical corporate financial data excel at identifying subtle transactional anomalies that indicate potential fraud or operational error. Automated systems instantly flag duplicate invoice payments, unapproved vendor creation, unusual journal entry timing, and unauthorized override of authority thresholds.

When an anomaly is detected, the automated auditing platform generates an instant risk alert, allowing internal audit teams to investigate root causes immediately. Early detection prevents minor operational errors from escalating into material weaknesses in financial reporting.

Streamlining External Audit Preparation
Continuous internal control monitoring delivers significant benefits during annual external financial audits. External audit firms can review continuous audit logs and automated control testing documentation, reducing the time required for manual field testing.

This integrated approach lowers overall audit compliance fees, reduces administrative burdens on corporate accounting staff, and provides senior management and audit committees with real-time visibility into the organization’s overall risk profile.

Core Implementation Guidelines
1. Transition to 100% Data Testing: Replace legacy sampling methods with automated continuous audit monitoring systems.
2. Deploy Anomaly Detection Algorithms: Implement machine learning models to identify unauthorized transactions and operational control overrides.
3. Align Internal and External Audit Workflows: Coordinate continuous control testing protocols with external auditors to optimize annual compliance cycles.

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