Accounting
How can CFOs build resilience while facing down challenges?
As businesses navigate turbulent economic waters, CFOs face mounting challenges in their mission to manage costs, optimize resources and maintain financial resilience. These challenges are made even more urgent by a well-documented
How much of a problem is talent scarcity?
Hiring and retention were the
A shortage of qualified hires creates work backlogs that fall on existing employees, which can stress them to the point where they decide to change employers, further exacerbating the problem. What’s more is unfilled seats and overworked team members contribute to operational challenges: when the work doesn’t get done, or contains human errors, the results can be dissatisfied customers and clients, financial reporting errors, and costly noncompliance, especially in
How can CFOs maintain or build flexibility in their organizations?
When talent scarcity problems accumulate, it’s virtually impossible for a company to scale efficiently or to stay flexible and resilient in a changing economic environment. To avoid reaching this point — or to start resolving existing inflexibility — CFOs can invest more in hiring, training and retention, and explore their options for automation to reduce the number of tasks that employees need to perform. CFOs can also consider outsourcing as a way to introduce a scalable team solution.
Double down on hiring?
Committing more resources to hiring and retention is the traditional option, but in today’s market it may not be the most effective or cost-efficient strategy. According to Deloitte’s Q4 2023
Add automation
In 2023, more than half of CFOs (51%) began automating tasks that had been done by employees, according to a
Expect to see more organizations adopting automation.
However, automation is not a quick fix. It requires resources that organizations may not have yet, which is one reason that the Fed survey found that
Explore AI now for greater leverage later
AI holds a great deal of promise for automation and operational assistance. However, because the technology is new, there’s a lot that has to happen before AI can take over any tasks, especially within the finance and accounting function.
Not quite a quarter of CFOs told Deloitte they expect their organizations to
Outsource some roles or responsibilities
Outsourcing is another option for maintaining flexibility and resilience, and 35% of CFOs surveyed by Deloitte said their organizations will
Outsourcing also opens up new markets of talent for organizations, and in the age of remote work, many business leaders are starting to see outsourcing as a natural extension of remote work. If an accounting team is working from home, the logic goes, it doesn’t necessarily matter where in the world that home is. One Stanford economist forecasts that “about 10% to 20% of U.S. service support jobs like software developers and human-resources professionals
Balancing the options for a stronger organization
Solutions for companies will vary, depending on their resources and stage of growth, and not every solution may fit or be attainable. At the same time, each of the solutions on its own is unlikely to achieve the CFO’s long-term growth and resilience strategies. By understanding how hiring, automation, AI and outsourcing contribute to operational efficiency, cost and quality, CFOs can identify the optimal combination of solutions to build resilience into their teams and meet the financial needs of their business now and over the long term.
Audit and accounting data solutions provider
Cloud-based LeaseJava is designed to help audit firms, corporations and non-profit/government entities to manage their leases and ensure compliance with accounting standards such as ASC 842, IFRS 16 and GASB 87. Specifically, it supports lease modifications without the need to create a new lease, as modifications can easily be added to existing leases. The solution is made to handle complex and nuanced scenarios, computing details down to the daily level and aggregating them to manage intricate situations. Export functionality is configurable, allowing the user to select and group leases accurately. Additionally, LeaseJava offers weighted average computation and a bulk import feature to enhance ease of use.
A spokesperson with Caseware said current customers of LeaseJava will still be able to use the software they’ve been using. Meanwhile, Caseware customers will be able to purchase it in the coming months. Caseware is in the process of evaluating continued application of the LeaseJava branding relative to future product plans.
This acquisition is an example of Caseware’s continued commitment to investing in solutions that will improve the accountant’s experience while providing integrated workflow management and analytics, according to the spokesperson.
“This acquisition underscores Caseware’s commitment to enhancing its connected ecosystem, artificial intelligence strategy and the provision of an even more comprehensive suite of trusted, innovative solutions. Customers can look forward to a seamless experience and the continued evolution of the Caseware family of products, enabling them to effortlessly manage their workflows and do their jobs better than ever before,” said David Osborne, Caseware CEO.
LeaseJava is headed by Michael Cheng, who is also a partner at Frazier and Deeter LLC. Prior to that, he worked directly with the FASB as a senior project manager. He is also a current member of the FASB’s Private Company Council, one year into his three-year term.
“I co-developed LeaseJava to solve the issues I was experiencing with lease computations along with Venkat Avasarala, Partner and CEO of Acuvity Consulting. He played a key role in its development, providing strategic leadership and expertise that were instrumental in shaping the platform’s growth and success,” said Cheng. “The acquisition by Caseware marks a significant milestone for both the solution and the profession. I am confident that the Caseware team, renowned for its innovation and commitment to excellence, will enhance the capabilities of LeaseJava, providing even greater value to users. Caseware’s global footprint and unparalleled ability to deliver expertly crafted technology and domain expertise worldwide, underscores their position as an industry leader.”
Caseware’s US customers will be the first to benefit from LeaseJava. The organization also plans to extend the solution’s availability to other markets, including Canada and the UK. LeaseJava has been available for sale in the US and supports US GAAP, IFRS and GASB lease accounting, with a revised onboarding process for new customers to purchase over the coming months.
Citrin Cooperman announced today it will receive a significant investment from Blackstone, the world’s largest private equity firm, which will acquire a majority stake in the firm from New Mountain Capital.
The deal is the first instance of an accounting firm to transfer private equity ownership from one group to another in the U.S. Terms of the transaction were not disclosed.
“We are excited to have reached an agreement for Blackstone to invest in Citrin Cooperman as we enter our next chapter of growth,” Citrin Cooperman CEO Alan Badey said in a statement Tuesday. “Blackstone will help us make additional investments in expanded service offerings and technology as we deliver on our continued commitment to best-in-class firm culture and providing an exceptional client experience. We thank New Mountain for their years of partnership in helping to build and support our business.”
Allan Koltin, CEO of Koltin Consulting Group, who advised on the deal, commented: “For many in the profession, the biggest question was whether something like this could ever happen, and my belief is there will now be many other transactions like this in the future. Kudos to Citrin Cooperman, New Mountain Capital and Blackstone on making history today.”
New Mountain first
“We are proud of our successful partnership with Citrin Cooperman, and we thank the management team, partners and staff of Citrin Cooperman for all we have accomplished together over the last three years,” Andre Moura and Nikhil Devulapalli, managing directors at New Mountain, said in a statement. “We look forward to seeing Citrin Cooperman continue to thrive for the benefit of all its clients and stakeholders.”
“The Citrin Cooperman partners and staff have done an exceptional job making the firm a leader through an unwavering commitment to excellence and client service,” Eli Nagler, a senior managing director at Blackstone, and Kelly Wannop, a managing director at Blackstone, said in a statement. “We are excited to invest in the business to help it continue to provide the highest quality offerings moving forward.”
Deutsche Bank Securities is serving as financial advisor, and Kirkland & Ellis and Gibson, Dunn & Crutcher are serving as legal advisors to Blackstone. Guggenheim Securities is serving as lead financial advisor to New Mountain and Citrin Cooperman. Koltin Consulting Group is serving as an additional financial adviser to both parties. Simpson Thacher & Bartlett, Zukerman Gore Brandeis & Crossman and Hunton Andrews Kurth are serving as legal advisers to New Mountain and Citrin Cooperman.
“Accounting is the best place to start because it’s the purest form of finance,” wrote Robert Kiyosaki, author of the Rich Man Poor Dad series of personal finance books. “You can’t fool it; it’s empirical.”
This insight resonates deeply in today’s business environment, where organizations must navigate macroeconomic uncertainties, technological disruptions and transformational opportunities. Amid these buffeting currents, finance and accounting have evolved from a number-crunching function to a strategic and consultative one, playing three critical roles — safeguarding assets, streamlining operations and influencing future growth. As we move into 2025, five key trends will define the F&A landscape and its ability to drive strategic value.
Caseware to acquire lease software company
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Citrin gets new PE owner as Blackstone buys New Mountain’s stake
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