Sammy was thinking to himself: “Who would have ever believed it?” And who would? Flashback: So much had happened to Samm
Posted: Mon May 02, 2022 7:31 am
Sammy was thinking to himself: “Who would have ever believed
it?” And who would? Flashback: So much had happened to Sammy. Years
before, he had quickly passed the CPA exam. While he was one of the
fastest risers ever at ZW& Co, he had been asked by his buddies
Randy and Paul to go in with them in their own new firm. During
this time, Randy and Paul had convinced some clients that they
would get a better deal with them, and besides, the clients had
dealt with them all along, anyway. Sammy had been concerned about
the no compete clause they had signed when they first signed up at
ZW & Co., and Paul had tried to convince Sammy that there was
no trouble. Paul’s brother over at Sooem & Tortz, Attorneys at
Law, had assured him that it probably was unenforceable, although
the case he was relying on was from out of state and dealt with a
much longer no compete period (3 years instead of one year). Randy
and Paul went on, taking some clients with them, later facing the
wrath of the ZW & Co. in the courtroom. Didn’t help that Paul
(but unknown to Randy) had copied client files. One bullet missed.
Thankfully, he had survived the Kornyvirus epidemic of 2020-22.
But, some dear older friends had somehow contracted it and had
died. Thankfully, the vaccinations had saved society but it took
years to get back to normal. Some things never came back…. Not
inconsequently, Sammy and Janet continued seeing each other more
and more, first at CPE breakfasts in Houston, then after hours, and
finally, hey- they got married. Not surprisingly, she had quit the
oppressive big 3 firm. They now had two great kids, and their own
practice together. In fact, the firm had grown remarkably by word
of mouth into a boutique firm primarily concentrating in oil &
gas consulting (particularly as to reserves); tax compliance and
planning; accounting services; some audit; and litigation
consulting. There were ten other partners other than Janet and him
at The Woodlands, but Janet was now working quite a bit from home,
telecommuting. And believe it or not, she had brought in a large
number of new clients, all adept at telecommuting. Wonderful stuff,
this telecommuting and technology! She could do her work usually
when she wanted, and how she wanted. She did all of this to slow
down when the kids “came” and to stay at home with them, but with
so more control of her time, she was almost doing as much as ever.
She was the success story in so many ways, balancing family, work
and life in general. And, there was no telling what she would have
done if she had gone into the oil business on her own! But she
loved what she was doing and was being paid handsomely for it.
Sammy never forgot his pained decision to leave ZW& Co. It was
one of the hardest decisions in his life. He really loved it there,
and he clearly was on the fast track. But, the next step to partner
could have taken around another four years or so. Typically
impatient, he wanted to move ahead faster. His expertise was there,
but the firm had its rules on experience and promotion. As earlier
noted, Janet had left that big 3 firm (now, sadly, there were only
two ‘big 2’ firms after the huge GIA scandal). She immediately hung
out her shingle, and practiced primarily in oil & gas as an oil
& gas consultant, where she immediately had more business than
she could handle-(and still did, even today and even at her premium
rates). Her reputation had indeed preceded her, and she needed help
with the non-consulting part of her practice. So, it made sense for
Janet and Sammy to team up, particularly since they were just
married. So, back in times when not worrying if a salary check
would be deposited (or if a check would bounce), the world was
there, wide open and full of opportunity. While hating to give up a
very good thing and the security that came with it, he none the
less jumped ship, but left on very favorable terms. That couldn’t
be said for Randy or Paul. And, while he didn’t want to admit it,
the untimely death of Vince, his dear friend and mentor, as the
result of a heart attack probably contributed to his decision, as
well. In typical male fashion (a/k/a ego), Sammy thought his own
good name (remember the Junior College scandal and all the press?)
and expertise would produce significantly higher “dividends” than a
salary at ZW & Co., and he thought he could attract some
significant (translation- huge) complementary business. He was
partially correct. The growth of the new firm, Taylor & Taylor
CPAs had been typically bumpy on the non consulting part of the
business- in other words, on Sammy’s part. It hurt his ego that
Janet was the clear breadwinner and rain maker, and he desperately
had wanted to prove himself, too. But a quality practice takes time
to grow. He also found out that being the big boss isn’t what it is
all cracked up to be, management courses at SHSU and continuing
education notwithstanding. Let’s not even mention the cash flow
worries of the year when the first baby came and Janet could not
work. And yes, who gets the responsibility for all the paperwork?
You do. And after dealing with all of those management issues, you
still have to go out and actually try to do the business of the
firm- in other words, do something billable! Sitting there in
reflection, he wondered if purposefully not choosing to go more
heavily into auditing the larger companies would have mattered.
After all, the clients were there. But--- well, you can wonder
about things until they make you crazy. You see, Sammy was now
trying to take life a little slower, particularly after being
scared by a recent medical emergency that turned out to not be a
heart attack. The doctor had said he was under too much stress. He
remembered what happened to Vince and thought of the kids and
Janet- and he knew he had too much to live for. The other work
prestige just wasn’t as important. After all, life was good, and he
wanted to keep it that way. Somehow the thought of simply giving
the family a large life insurance payoff if he died didn’t really
appeal to him, he wanted to be around to share with them their life
experiences. Apparently, his dear friend Vince was still mentoring
him, even today. While looking at pictures of Janet and the kids
(the pictures were all already getting old, he needed to update
them someday- but put it off… put it off…), he traveled back in
time remembering with fondness their wedding. Being the ‘country
bunch’ that they were, this had been a good old hill country
wedding, with all the attendant activities thereto, including
barbeque. Most Texans know that really good barbeque is like wine-
it takes time. You have to do it right, which means that (along
with great care and deliberate attention to its preparation) the
slower you cook it- the better. If hurried, it is not near as good.
(Aside: Ever been around those good old mesquite coal embers in a
“pit” or trough, while the meat is suspended above it on “chicken”
wire, as you baste it and turn it? Chicken, mutton, briskets or
sausage- can’t be beat. But, it takes time and patience! Once you
have had the “good stuff”, that stainless steel prepared or other
so called “BBQ” stuff cannot compare.) He recalled a friend, Ed
Summers, had once said that a good life was much like BBQ- it takes
time and careful tending. Ed had also suggested that there really
should be no “dividing line” between one’s professional life and
personal life- it should all be one core set of values- not one set
of values for personal and another set for “work.” Sammy shook his
head, thinking how simple but ever so true those observations were.
He hoped he would never forget them. Well, so much for quiet time,
he had to get back, at least for a moment, to running the practice.
He was looking over some additional new suggested ad bylines for
the online ad on FaceMask to compliment those already there: 1.
Come be a part of the best client list in Houston. 2. Our service
cannot be compared to any other firm. 3. Debit & Credits? Leave
the mystery to us. Being kind of distracted today, he handed the
list to his office manager and asked her to make sure the ad
bylines were within the TSBPA’s Rules, but he also wanted them to
be effective as marketing tools, as well. The ads were not cheap,
after all. The manager would report back later. Well, one (handed
off) task done! Not really wanting to work, Sammy started going off
into his memories again and remembered back to the Pandemic of
2020-2021. He had lost his mother to the virus as had Janet. So
sad, and so many good people lost. He then remembered the many
bankruptcies of the era and the numerous good businesses and people
that lost it all. But he also remembered the politics and fears
that seemed to skew the recovery effort. But eventually it worked
out, and people got to go back to *almost* normal. The changes were
notable. Later in the afternoon, he was surprised (and almost fell
out of the chair) when he received a visit from Mr. Glenn Zack, one
of the founding partners at ZW& Co. Glenn was quite the epitome
of the “elder” partner of a firm, and you could almost feel his
aura when he came into the room. After catching up on things, the
bombshell fell: ZW & Co. wanted Taylor, Taylor & Co. to
merge with them. After sucking some air, Sammy and Glenn continued
the discussions. In general, ZW & Co. wanted to expand into The
Woodlands, had never wanted to lose Sammy, and in general offered
other inducements such as higher income, pensions, and the ability
to manage and oversee certain areas and clients that he had always
wanted to do. A moment of clarity overcame Sammy: he knew Glenn was
really wanting Janet’s consulting business, which had continued to
blossom (actually explode!). Let’s face it, she was the business.
She still accounted for probably 60% of the firm billings, even
today. Anyway, allegedly all of this was for various business
reasons and also the fact that without a doubt, Taylor, Taylor
& Co. had the highest ratings of any firm in the area, although
it clearly was not the largest. While much more talk ensued, that
was the gist of the meeting. And it was so nice not doing it via
Zoom, as so many meetings were held in the early 2020’s. People
contact still mattered! Glenn asked Sammy to talk it over with
Janet and the other partners, and hopefully they could meet next
week at Tony’s (a very fancy restaurant in Houston). Sammy began
remembering the troubles involved with merging with two much
smaller firms- the personnel issues, the client issues, the lease
problems, the computer issues, etc. But, “Relax!” Sammy told
himself. “One thing at a time.” What a day. What a life! Thinking
about how his personal and professional life had blossomed and how
he and Janet had been so blessed over the years, Sammy thought:
“Who would have ever believed it?”
2. Does telecommuting cause any real or potential ethical
issues? Explain. What are the practical advantages and
disadvantages of telecommuting? (We are getting to be kinda expert
on this one by now, or not?)
3. What ethical matters are involved in leaving any professional
employment?
it?” And who would? Flashback: So much had happened to Sammy. Years
before, he had quickly passed the CPA exam. While he was one of the
fastest risers ever at ZW& Co, he had been asked by his buddies
Randy and Paul to go in with them in their own new firm. During
this time, Randy and Paul had convinced some clients that they
would get a better deal with them, and besides, the clients had
dealt with them all along, anyway. Sammy had been concerned about
the no compete clause they had signed when they first signed up at
ZW & Co., and Paul had tried to convince Sammy that there was
no trouble. Paul’s brother over at Sooem & Tortz, Attorneys at
Law, had assured him that it probably was unenforceable, although
the case he was relying on was from out of state and dealt with a
much longer no compete period (3 years instead of one year). Randy
and Paul went on, taking some clients with them, later facing the
wrath of the ZW & Co. in the courtroom. Didn’t help that Paul
(but unknown to Randy) had copied client files. One bullet missed.
Thankfully, he had survived the Kornyvirus epidemic of 2020-22.
But, some dear older friends had somehow contracted it and had
died. Thankfully, the vaccinations had saved society but it took
years to get back to normal. Some things never came back…. Not
inconsequently, Sammy and Janet continued seeing each other more
and more, first at CPE breakfasts in Houston, then after hours, and
finally, hey- they got married. Not surprisingly, she had quit the
oppressive big 3 firm. They now had two great kids, and their own
practice together. In fact, the firm had grown remarkably by word
of mouth into a boutique firm primarily concentrating in oil &
gas consulting (particularly as to reserves); tax compliance and
planning; accounting services; some audit; and litigation
consulting. There were ten other partners other than Janet and him
at The Woodlands, but Janet was now working quite a bit from home,
telecommuting. And believe it or not, she had brought in a large
number of new clients, all adept at telecommuting. Wonderful stuff,
this telecommuting and technology! She could do her work usually
when she wanted, and how she wanted. She did all of this to slow
down when the kids “came” and to stay at home with them, but with
so more control of her time, she was almost doing as much as ever.
She was the success story in so many ways, balancing family, work
and life in general. And, there was no telling what she would have
done if she had gone into the oil business on her own! But she
loved what she was doing and was being paid handsomely for it.
Sammy never forgot his pained decision to leave ZW& Co. It was
one of the hardest decisions in his life. He really loved it there,
and he clearly was on the fast track. But, the next step to partner
could have taken around another four years or so. Typically
impatient, he wanted to move ahead faster. His expertise was there,
but the firm had its rules on experience and promotion. As earlier
noted, Janet had left that big 3 firm (now, sadly, there were only
two ‘big 2’ firms after the huge GIA scandal). She immediately hung
out her shingle, and practiced primarily in oil & gas as an oil
& gas consultant, where she immediately had more business than
she could handle-(and still did, even today and even at her premium
rates). Her reputation had indeed preceded her, and she needed help
with the non-consulting part of her practice. So, it made sense for
Janet and Sammy to team up, particularly since they were just
married. So, back in times when not worrying if a salary check
would be deposited (or if a check would bounce), the world was
there, wide open and full of opportunity. While hating to give up a
very good thing and the security that came with it, he none the
less jumped ship, but left on very favorable terms. That couldn’t
be said for Randy or Paul. And, while he didn’t want to admit it,
the untimely death of Vince, his dear friend and mentor, as the
result of a heart attack probably contributed to his decision, as
well. In typical male fashion (a/k/a ego), Sammy thought his own
good name (remember the Junior College scandal and all the press?)
and expertise would produce significantly higher “dividends” than a
salary at ZW & Co., and he thought he could attract some
significant (translation- huge) complementary business. He was
partially correct. The growth of the new firm, Taylor & Taylor
CPAs had been typically bumpy on the non consulting part of the
business- in other words, on Sammy’s part. It hurt his ego that
Janet was the clear breadwinner and rain maker, and he desperately
had wanted to prove himself, too. But a quality practice takes time
to grow. He also found out that being the big boss isn’t what it is
all cracked up to be, management courses at SHSU and continuing
education notwithstanding. Let’s not even mention the cash flow
worries of the year when the first baby came and Janet could not
work. And yes, who gets the responsibility for all the paperwork?
You do. And after dealing with all of those management issues, you
still have to go out and actually try to do the business of the
firm- in other words, do something billable! Sitting there in
reflection, he wondered if purposefully not choosing to go more
heavily into auditing the larger companies would have mattered.
After all, the clients were there. But--- well, you can wonder
about things until they make you crazy. You see, Sammy was now
trying to take life a little slower, particularly after being
scared by a recent medical emergency that turned out to not be a
heart attack. The doctor had said he was under too much stress. He
remembered what happened to Vince and thought of the kids and
Janet- and he knew he had too much to live for. The other work
prestige just wasn’t as important. After all, life was good, and he
wanted to keep it that way. Somehow the thought of simply giving
the family a large life insurance payoff if he died didn’t really
appeal to him, he wanted to be around to share with them their life
experiences. Apparently, his dear friend Vince was still mentoring
him, even today. While looking at pictures of Janet and the kids
(the pictures were all already getting old, he needed to update
them someday- but put it off… put it off…), he traveled back in
time remembering with fondness their wedding. Being the ‘country
bunch’ that they were, this had been a good old hill country
wedding, with all the attendant activities thereto, including
barbeque. Most Texans know that really good barbeque is like wine-
it takes time. You have to do it right, which means that (along
with great care and deliberate attention to its preparation) the
slower you cook it- the better. If hurried, it is not near as good.
(Aside: Ever been around those good old mesquite coal embers in a
“pit” or trough, while the meat is suspended above it on “chicken”
wire, as you baste it and turn it? Chicken, mutton, briskets or
sausage- can’t be beat. But, it takes time and patience! Once you
have had the “good stuff”, that stainless steel prepared or other
so called “BBQ” stuff cannot compare.) He recalled a friend, Ed
Summers, had once said that a good life was much like BBQ- it takes
time and careful tending. Ed had also suggested that there really
should be no “dividing line” between one’s professional life and
personal life- it should all be one core set of values- not one set
of values for personal and another set for “work.” Sammy shook his
head, thinking how simple but ever so true those observations were.
He hoped he would never forget them. Well, so much for quiet time,
he had to get back, at least for a moment, to running the practice.
He was looking over some additional new suggested ad bylines for
the online ad on FaceMask to compliment those already there: 1.
Come be a part of the best client list in Houston. 2. Our service
cannot be compared to any other firm. 3. Debit & Credits? Leave
the mystery to us. Being kind of distracted today, he handed the
list to his office manager and asked her to make sure the ad
bylines were within the TSBPA’s Rules, but he also wanted them to
be effective as marketing tools, as well. The ads were not cheap,
after all. The manager would report back later. Well, one (handed
off) task done! Not really wanting to work, Sammy started going off
into his memories again and remembered back to the Pandemic of
2020-2021. He had lost his mother to the virus as had Janet. So
sad, and so many good people lost. He then remembered the many
bankruptcies of the era and the numerous good businesses and people
that lost it all. But he also remembered the politics and fears
that seemed to skew the recovery effort. But eventually it worked
out, and people got to go back to *almost* normal. The changes were
notable. Later in the afternoon, he was surprised (and almost fell
out of the chair) when he received a visit from Mr. Glenn Zack, one
of the founding partners at ZW& Co. Glenn was quite the epitome
of the “elder” partner of a firm, and you could almost feel his
aura when he came into the room. After catching up on things, the
bombshell fell: ZW & Co. wanted Taylor, Taylor & Co. to
merge with them. After sucking some air, Sammy and Glenn continued
the discussions. In general, ZW & Co. wanted to expand into The
Woodlands, had never wanted to lose Sammy, and in general offered
other inducements such as higher income, pensions, and the ability
to manage and oversee certain areas and clients that he had always
wanted to do. A moment of clarity overcame Sammy: he knew Glenn was
really wanting Janet’s consulting business, which had continued to
blossom (actually explode!). Let’s face it, she was the business.
She still accounted for probably 60% of the firm billings, even
today. Anyway, allegedly all of this was for various business
reasons and also the fact that without a doubt, Taylor, Taylor
& Co. had the highest ratings of any firm in the area, although
it clearly was not the largest. While much more talk ensued, that
was the gist of the meeting. And it was so nice not doing it via
Zoom, as so many meetings were held in the early 2020’s. People
contact still mattered! Glenn asked Sammy to talk it over with
Janet and the other partners, and hopefully they could meet next
week at Tony’s (a very fancy restaurant in Houston). Sammy began
remembering the troubles involved with merging with two much
smaller firms- the personnel issues, the client issues, the lease
problems, the computer issues, etc. But, “Relax!” Sammy told
himself. “One thing at a time.” What a day. What a life! Thinking
about how his personal and professional life had blossomed and how
he and Janet had been so blessed over the years, Sammy thought:
“Who would have ever believed it?”
2. Does telecommuting cause any real or potential ethical
issues? Explain. What are the practical advantages and
disadvantages of telecommuting? (We are getting to be kinda expert
on this one by now, or not?)
3. What ethical matters are involved in leaving any professional
employment?