Office politics: why governmental affairs is important; What you always wanted to know, but were afraid to ask.

• Author: Paul, Ken
• Position: Capitol Access

When you hear people talk about "office politics," governmental affairs and political action committees are not usually the first things to come to mind. Yet in the current legislative and regulatory environment, the politics of accounting have become increasingly important. The wake of recent corporate scandals has left investors wary and some lawmakers wondering if they have done enough. While there is no indication Congress and state legislatures will move to further extend the far-reaching Sarbanes-Oxley Act, there is a feeling among many that the profession may still be one failure away from action that would fundamentally change the way most CPAs do business.

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The accounting profession has done well to move beyond the headlines, but few professions continue to attract as much scrutiny from lawmakers. It is not likely this volatile atmosphere will improve in an election year, and CPAs must resist the temptation to become complacent. It is in times like these that effective governmental affairs efforts and a strong political action committee are crucial.

Governmental Affairs: Why it is important

Governmental affairs is one of the core benefits of Ohio Society membership, yet it tends to be an area in which many find it difficult or uncomfortable to become involved. This aversion to all things "political" is not exclusive to any one profession. However, organizations with strong governmental affairs efforts have proved invaluable in the complex business regulatory environment. These organizations are able to respond in times of crisis and take proactive measures in times of relative calm. The Ohio Society of CPAs has enjoyed a tremendous track record in advocating for its membership and the accounting profession as a whole in Ohio. In just the past 18 months we have been successful in continuing the exemption of accounting services from any sales tax, limiting the cascade effect of Sarbanes-Oxley by the Ohio General Assembly, achieving municipal income tax reform, and winning passage of meaningful lawsuit abuse reform.

What does this have to do with me?

In any organization there is the expectation that the membership will be represented where it really counts--including before regulatory bodies and lawmakers. This expectation certainly applies to the Ohio Society, and rightly so. However, even with the most capable advocates working on your behalf, the need for individual member participation in governmental affairs efforts...