The top stories in accounting & finance for the week of July 23rd
CEO of Nvoicepay Karla Friede, among other executives from Kabbage, Robinhood, and Wealthfront, shares her top insights on money management learned young. The advice from financial execs runs the gamut from resisting impulses to sell off investments during market volatility to securing a better emotional state and positive outlook on life by exercising spending restraint. Friede shared a lesson on fiscal responsibility learned from her grandparents: “They didn’t make much money, but they always saved 10 percent of what they earned, no matter how hard that was or how little they had to spend.”
The Association for Financial Professionals published a new report that suggests tax reform may be less of an impetus for spend than originally anticipated. The data says that businesses indicate they wish to use the money to pay down debt (26%) or alternatively to bring foreign spending back into the U.S (24%). Cash management is leveling up as a corporate strategy and not just an “operational after-thought”, this according to State Street Global Advisors Senior Managing Director and Global Head of Cash Business Yeng Felipe Butler.
Overhead costly office space, begone. At least, that’s what the data shows. More workers are embracing digital improvements to their work lifestyle as only 50 to 60 percent of their time is now spent behind a desk, according to data from Global Workplace Analytics. The accounting department is facing an impending shortage of certified CPAs as of January 2018 when employment rates for accountants was measured at 1.8 percent and dropping. What will modern accounting firms do? Change with the curve, but ideally, ahead of it.
The fourth and final report from the U.S. Department of Treasury is due out soon and many are anticipating regulatory recommendations made by the current administration for this burgeoning industry. Consumer, business and mortgage lending, auto lending, and much more are on the docket for discussion, as well as rule-making recommendations for spheres that have emerged since the housing market crisis. 3,300 new fintech companies have emerged since then, almost half of which are dialed in on banking and capital markets.
Amazon isn’t making any sudden moves in the financial space, but the slow and calculated movements of a giant are still bound to make waves. The “dip your toe in the pool” effect has a much greater chance of received success than making a cannonball, and Amazon knows that. So as one of America’s most trusted brands, they started dabbling in financial services back in 1999 with its first official patent of 1-click-shopping, followed by a slew of other money services including interest-free financing, Amazon WebPay, and number of card offerings. Incumbents are worried (rightfully so) that it’s only a matter of time the retailer giant goes for the throat of traditional financial services.