Accounting
Founder Files: Stephen Buller broke the Big Four mold
While most accountants dread conducting on-site inventory observations — often considered one of the rote tasks shoved onto those at the bottom of the food chain — Stephen Buller loved them.
While working for a Big Four firm, he remembers going to a lumber yard in his home state of Washington for an inventory count. He recalls walking around the snowy fields in soaked sneakers and socks, looking every bit the ill-dressed, out-of-place accountant, but loving every moment of it.
“I really enjoyed those experiences because I got to see the nuts and bolts of the business,” Buller said. “I think a lot of what I’ve taken into my own business now is that numbers are just numbers. Is a million dollars a lot? I don’t know, what’s the context? Is this a good revenue number? Am I paying too much for payroll?”
“The numbers are not enough,” he said. “You have to have context in the business.”
It’s one of the reasons he was never content working at the Big Four. Buller wanted to spend his hours helping business owners put more money in their bank account, not telling the Securities and Exchange Commission that a company’s finances check out.
“I never felt much satisfaction from the actual work that was being accomplished, and maybe that has to do with the intangible nature of numbers,” he said. “The final delivery of a $100,000 audit is a single page, written up, signed by the partner that basically says, ‘We don’t find any problems with your finances.’ That’s just the industry — it’s not necessarily a criticism of that product.”
‘It was really painful for me’
Buller studied accounting at the University of Washington. He was a member of Beta Alpha Psi, the accounting and finance honors society. From his interactions with recruiters through the society, he interned at the Big Four firm before graduating with his master’s degree and joining full time. But it wasn’t what he expected.
“It was really painful for me,” he said.
Buller didn’t enjoy the number of hours spent behind a desk. While the firm had an efficient and detailed audit methodology, he felt as though seniors and managers were always creating more work — even after the job was done.
“There were a couple of people I worked with, supervisors and managers, who bucked this trend,” he said. “They were really focused on, ‘These are the things we need to get done, and when we get those done we’re done. We don’t have to work hours we don’t need to.'”
He said it boils down to the billable hours you can charge a client: “I got the sense that partners never wanted to report fewer hours because that might justify a cut in the fee.”
Buller felt his proposed ideas for improving processes were usually shut down before even being considered. “This isn’t necessarily a criticism directly of [the firm] but just of any very large organization,” he said, referencing the “If it ain’t broke, don’t fix it” mentality.
He also disliked the lack of work-life balance: “The overall perspective of the public accounting industry is that 45 to 50 hours a week is a break. That’s like vacation to them.”
Buller left the firm in 2010 after about three years. He jumped around a variety of tech companies, startups and public companies as an accountant and controller. Around the same time as leaving the Big Four firm, Buller took his first swing at building his own company. He dropped a few thousand dollars on setting up a website to start an e-commerce business selling self-defense and security products, like pepper spray and tasers. The venture was unprofitable and he jumped ship after one of his managers told him he needed more time before he’d be ready to run a business.
He finally started his own practice, Buller Accounting, in 2015 after acquiring a bookkeeping firm from a local tax accountant who was selling. Buller’s firm offers a variety of services including bookkeeping, in-house payroll and more. With his five employees, he manages about 50 clients, mostly small-business owners based in Washington State and the Northwest Coast.
‘We can do things differently’
Buller’s creed is that he can do things differently at his firm.
“I felt like at [the Big Four firm] I was not treated like a human being, with thoughts and feelings, good ideas and bad ideas, wants and dreams, and hopes and fears. I felt very much like I was a tool. I was meant to be used, and when my productivity or patience had run out I was to be discarded. And I think that is awful,” he said. “I think there are plenty of good things that I take from [the Big Four firm], and then there are things that I say we can do differently.”
But Buller isn’t trying to rebuild the wheel. One of the things that he carries on from his time in the Big Four is the mantra, “If it’s not documented, it’s not done.”
Oftentimes, a business owner hiring an accountant doesn’t necessarily care how the work gets done — just as long as it gets done. Problems usually don’t arise until someone is audited, it’s tax season, or they receive a surprise letter from the IRS. That’s why showing his work is so important.
“Everybody messes up from time to time, and we can do our best to build processes that avoid mistakes, but they will still happen,” Buller said. “And so our real goal should not necessarily be to ensure no mistakes ever happen, but to ensure we can support what we did and why we did it.”
Where Buller does diverge from big firms is in his pricing model. He explained, “For me running my business, a huge part of being successful is knowing how much revenue is going to come in, and how many expenses are going to go out.”
It seems simple, he said, but it’s hard to do for many business owners who don’t know anything about accounting. For instance, when Buller tells a client they need to amend a filing, which may take a couple hours and result in an additional $500 added onto their bill, clients can feel blindsided.
So instead, Buller works with his clients for a couple of months to develop a thorough scope of what services they actually need, and then he quotes them a flat-rate fee. “If we do work outside of that scope, I do my best to tell the client ahead of time, ‘This is outside of scope, I think it’ll take about this much. Is that OK?’ And then anything that’s in scope that just happens to take us longer, then that’s on us.”
“So I just need to manage my hours very carefully and see what clients are consistently going over budget or under budget, and adjust accordingly,” he added.
For clients that consistently take him and his team less time than he has budgeted, he’ll voluntarily reach out and tell them he’s decreasing their bill by a certain amount. For clients that consistently take more time, he explains what he missed in the estimate that constitutes a higher bill, but he purposefully works on a month-to-month basis so as not to make clients feel as though they’re locked in to an unfavorable agreement.
Buller’s first piece advice, for young accountants especially, is the reminder, “You don’t know everything.”
“I think a really good way to start your career is to go to work in an industry that interests you. Work for a company, boss, team and people that you respect and enjoy,” he said.
He also does not recommend trying to start a business right out of college, warning that most people will lack the experience and knowledge necessary to do so effectively. “Instead, I would go to work for somebody who does what you want to do, learn as much as you can from them about what not to do and what to do, and then maybe move on to starting a business.”
And as someone who did not feel like he fit into the traditional accountant mold but loved the accounting itself, Buller emphasizes the broad scope for applying accounting skills: “Once you have that framework and you understand the debits and credits, the different accounts and how it all works, you can look at any business with a perceptive eye.”
“A lot of businesses come out of a couple of people working at some company, seeing the same complaint over and over again, and then saying, ‘Why don’t we start our own business and solve this problem?'” Buller said. “That’s the heart of entrepreneurship — seeing a problem and solving it — and people will pay you to do that.”
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Enjoy complimentary access to top ideas and insights — selected by our editors.
Talent acquisition and retention is a growing challenge in the accounting profession. Despite
To start, average starting salaries for those with accounting majors fall short of those offered to business majors and applicants in the technology and finance sectors.
Data from
“The industry as a whole is not attractive to the younger population, and it’s difficult for our staff to work remotely,” Paul Miller, a CPA and managing partner at
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Wage disparities are only one piece of the puzzle, however.
Leaders of
Shagun Malhotra, CEO and founder of Skystem, told Accounting Today last month that modifying accounting education and certifications to include a greater focus on technology “could make the profession more appealing and relevant to a younger, broader set of professionals,” she said.
“The focus needs to shift from routine compliance tasks to strategic, technology-driven roles that still add value to the business without wasting time on [un]necessary tasks,” Malhotra said.
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AI adoption will only continue to grow as regulators become more knowledgeable and comfortable with the technology, which executives hope will ease the workload for accountants across the profession and, in turn, reduce turnover.
“We’ve asked tax and accounting professionals to do too much with too few resources for too long. … The burnout shows through high attrition rates and professionals committing highly visible errors,” said Elizabeth Beastrom, president of Thomson Reuters Tax & Accounting.
Read on for a look at the top talent struggles hitting firms across the U.S. and expert commentary on what factors are underpinning this trend.
Five of the most important organizations in the planning profession are pushing for lawmakers to restore tax incentives for financial advice ahead of a massive potential deadline next year.
In
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The letter represents an area of agreement among wealth management trade and professional organizations that have split in other policy debates — such as
Repeal of “a limited tax deduction for investment advice” as part of the law essentially raised the “cost of financial advice crucial to Main Street investors saving for retirement, college and other important life events such as home purchases,” according to Erin Koeppel, the managing director of government relations and public policy counsel of
“Congress and the new administration will have the opportunity to restore and expand tax incentives to make financial advice more accessible to everyday Americans,” she said in a statement. “Tax credits or other subsidies aimed at moderate-income individuals would encourage these investors to seek professional financial advice, which, in turn, will improve financial outcomes. This ultimately will allow a broader range of Americans to access financial advice for major financial milestones and everyday needs.”
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However, the earlier deduction and other “miscellaneous” items eliminated by the Tax Cuts and Jobs Act added up to roughly $32 billion worth of revenue in the first 10 years of the legislation, according to Garrett Watson, a senior policy analyst and modeling manager at the nonprofit, nonpartisan
“I have not seen any specific evidence suggesting that the repeal of this deduction led to a decline in Americans seeking financial advice or if it noticeably impacted the prices for those services,” he said. “The AGI floor means that a portion of those services were not impacted at all, and taxpayers received tax breaks elsewhere that would offset (or more than offset) this tax increase in insolation.”
In their letter, the organizations argued that the earlier tax incentives “may have appeared inconsequential” at the time of the 2017 law, but the COVID-19 pandemic and accompanying economic volatility demonstrated the importance of “having access to affordable, professional advice from trusted financial professionals.”
“As Congress considers extending the expiring provisions of the TCJA, we ask that Congress restore and expand tax incentives for financial advice, including financial planning,” the organizations wrote in the Sept. 16 letter. “Such tax incentives may include deductions, credits, or a combination thereof. Further, Congress should ensure that these incentives are responsive to the needs of Main Street Americans. All taxpayers need help to obtain the critical financial advice they need now, and any tax incentives should be widely available to American households.”
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They
“The challenge heading into next year is every specific tax deduction, credit or other expenditure has a specific use-case and set of folks who argue that they should be retained, but this comes at the cost of greater complexity in our tax code and higher tax rates,” Watson said. “If anything, we may need to further base broadening efforts to ensure the fiscal situation improves federally, and that would include retaining the progress policymakers made on base broadening in 2017. This can help keep tax rates lower, which is helpful for taxpayers and American families across the country.”
The Securities and Exchange Commission has been constantly revising its stance on how public companies should report their climate impact.
These ongoing changes are keeping auditors, companies and investors confused. After proposing ambitious rules in 2022, the SEC adopted a scaled-back version in 2024. The new rules are set forth in
Both progress and setbacks have marked the SEC’s journey toward finalizing climate disclosure rules. While the initial proposal aimed to require extensive climate-related disclosures, the final rules ultimately focused on critical areas like Scope 1 and 2 emissions, financial statement disclosures, and board oversight. However, even these revised rules have faced significant opposition.
How are the 2022 proposed rules different from the final rules?
One of the most contentious areas was the treatment of Scope 3 emissions. The 2022 proposal would have required public companies to disclose Scope 3 emissions, representing indirect emissions from upstream and downstream activities. This included emissions associated with a company’s supply chain, transportation and other value chain activities.
In a significant departure from the original proposal, the SEC eliminated the Scope 3 emissions disclosure requirement in the final rules. This decision was met with praise and criticism, with opponents arguing that Scope 3 emissions are critical to a company’s overall carbon footprint.
Other significant changes include the following:
- Scope 1 and 2 emissions: While the requirement for Scope 1 and 2 emissions (direct and indirect emissions from purchased electricity) remained, it was limited to larger companies (accelerated and large accelerated filers) and only if the emissions were deemed “material.”
- Financial statement disclosures: The proposed requirement to disclose the impact of climate-related risks on financial statements was removed from the final rules.
- Board oversight: The SEC also eliminated requirements for disclosing board members’ climate-related experience and specific climate responsibilities.
- Flexibility: The final rules provide more flexibility regarding where and how companies present their climate-related disclosures.
Why did the SEC make the changes?
The SEC’s decision to scale back the initial proposal was likely influenced by a combination of factors, including:
- Complexity: Scope 3 emissions can be complex to measure and report, and some companies may have faced challenges in collecting and analyzing this data.
- Legal challenges: The SEC may have anticipated legal challenges to the Scope 3 emissions requirement and removed it to avoid potential regulatory uncertainty.
- Economic impacts: Some critics argued that requiring Scope 3 emissions disclosure could impose significant costs on businesses, particularly smaller companies.
While the final rules represent a compromise between the SEC’s initial ambitions and the concerns of various stakeholders, the issue of climate-related disclosures remains a complex and controversial topic. Ongoing legal challenges and continued uncertainty persist.
Legal battles and regulatory uncertainty
Almost immediately after the final rules were adopted, various groups, including businesses, conservative organizations and environmental activists, challenged them in court. In response, the SEC unexpectedly voluntarily paused the implementation of the rules while legal proceedings were ongoing. This decision has created a period of uncertainty for auditors and their clients.
On April 4, 2024, the
Legal challenges
Multiple lawsuits have been filed challenging the SEC’s final climate rules. Business interests and conservative groups have filed challenges in various federal appellate courts. Republican attorneys general have also filed legal challenges. Environmental groups like the Sierra Club have sued, arguing the rules are too weak. These cases have been consolidated and are now pending review in the U.S. Court of Appeals for the Eighth Circuit.
SEC’s current position
Despite issuing the stay, the SEC maintains that the climate rules are consistent with applicable law and within its authority. The agency has stated that it will “continue vigorously defending” the validity of the rules in court and reiterated that its existing 2010 climate disclosure guidance remains in effect.
Where we are today
While the stay is in effect, companies subject to SEC regulations will not be required to comply with the new climate disclosure rules. However, many experts advise companies to continue their preparatory efforts, albeit on a less accelerated timeline, given the ongoing investor interest in climate-related disclosures and the potential for the rules to be upheld in court.
What does this all mean for auditors and their clients?
The evolving regulatory landscape has several implications for auditors and the companies they serve:
- Increased scrutiny of ESG claims: Even without mandatory disclosures, the SEC remains vigilant against false or misleading ESG claims. Auditors must be diligent in reviewing sustainability reports and other ESG-related communications.
- Focus on internal controls: Companies should have strong internal controls to support their ESG disclosures. Auditors may need to assess these controls for their overall audit planning.
- Preparation for potential implementation: While the SEC rules are currently on hold, companies should continue to prepare for their potential implementation. Auditors can play a valuable role in helping clients through this period of uncertainty.
The road ahead
The future of climate-related disclosures remains uncertain, but this issue will remain a significant focus for regulators, investors, the courts and the public. Auditors must stay prepared to adapt their practices to meet the needs of their clients during this period of uncertainty and beyond.
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