PCPS Executive Committee Votes to Support the Proposed New Global Business Credential.

At the AICPA Council Meeting in May, PCPS Executive Committee Chairman Bill Balhoff reported that the committee had voted to support the proposed new global business credential. The vote took place after the committee had received a full briefing on the credential including a presentation of independent research on the market demand for and student interest in the credential. The committee also heard arguments for and against the proposal. Here are the reasons the committee voted to endorse the global business credential:

1. The recent PCPS member survey shows that staffing is the number one practice management issue for more than 90% of its member firms. The research data on the credential indicates that the global designation could boost student enrollment in accounting programs. The credential not only measurably increases college student interest in entering the profession--by 28% in a recent survey--but also increases their interest in pursuing the CPA--by 11% in the same survey. These results show that students do not see the proposed credential as a substitute for the CPA. In fact, 83% said it complemented the CPA and 38% felt that both the CPA and global business credential would be worth pursuing.

2. Many PCPS member firms currently employ non-CPAs who provide consulting and other nontraditional services. After analyzing the advantages and disadvantages of the global credential, the committee concluded that these talented people and their firms would benefit from a broad-based interdisciplinary business credential that features many of the highly respected hallmarks of the CPA profession. These hallmarks include a code of ethics, self-assessment, recertification processes and a commitment to continuing professional education.

3. The credential could bring added value to member firms. The data has indicated significant market demand for an interdisciplinary global business credential like the one being proposed. In fact, research shows that 83% of employers and 75% of clients would be more likely to engage a professional services firm that employs credential holders or to hire someone holding a global business credential for a senior strategic business planning position. About half of senior executives expressed a willingness to pay a premium of 11% for a professional services firm employing credential holders. This perceived value could result in more engagements and increased fees for services for even the smallest firms.

The PCPS...