NABA-DOF Members Find Fulfillment, Challenges in Entrepreneurship - 2019 Spring Spectrum Magazine

NABA/DOF Members Find Fulfillment, CHALLENGES IN ENTREPRENEURSHIP By Ruth E. Thaler-Carter An important factor in Walker’s success as an entrepreneur is that “I prepared a business plan and defined my goals For many NABA members, going out on their and objectives for the business,” she said. “The most own as entrepreneurs is an enticing dream. important factor in preparing for business ownership Whether feeling blocked from progress in the is having the money to support your business until you corporate world or ready for flexibility and develop a client base.” balance between work and personal lives, Walker’s business offers a “range of services that they are forging their own paths as owners of includes financial-related and performance auditing, accounting businesses rather than working compliance auditing, financial analysis, and operational in-house for someone else. Here’s how reviews,” she said. “Our professionals bring creativity to longtime members of NABA and the Division each assignment, with fresh ideas grounded in rigorous of Firms Inc., a national nonprofit organization factual analysis and continued from strategy through of African American CPA firms, are thriving implementation. The firm has worked on financial, as business owners. compliance, and performance audits for nonprofit organizations, school districts, colleges and universities, EMMA S. WALKER, CPA, CFE and state and local agencies. These audits or agreed- upon procedure projects have addressed the compliance “Leaving corporate America to start with federal and state laws, contractual obligations, a business of my own was exciting, regulations and statutes by third-party vendors, although it was also very demanding independent contractors, other government agencies, and required a lot of planning and and other organizations.” startup time,” said Emma S. Walker, Establishing a strong perspective was also key. “Our CPA, CFE, who founded her firm in objective is to provide quality auditing, tax, and 1982. It helped that “I had already developed a network management services to our clients. We apply our by serving on nonprofit boards, was an active member knowledge and understanding of the issues to help in the Chambers of Commerce (majority and minority), solve problems, maximize opportunities, and implement and attended local entrepreneur workshops and business changes while encouraging clients to leverage our symposiums,” she recalled. For research and information resources to the fullest.” to the profession, “I talked to several black CPAs in private Going out on her own had its challenges, even with practice.” careful research and planning beforehand. “The greatest challenge as a minority business is maintaining staff,” said 22 SPECTRUM | SPRING 2019 Walker. “It is hard to compete with benefits and salaries

offered by larger accounting firms.” While she would like to “[C]ontributing to and giving back offer opportunities to young people starting out and does … allows our firm to provide value- support her local NABA chapter’s scholarship fund in light added services to our clientele.” of the Lifting As We Climb motto, “as a small minority firm, I only hire experienced accountants. I do not have the resources King spent 15 years in the corporate world before to train graduates entering the accounting profession.” returning home to Baltimore to help the family firm What has made a difference in the longevity and success of make the transition from first- to second-generation her firm, Walker said, has been “providing quality service and management and ownership. Today, 62 years since its being knowledgeable in the areas of service rendered. I was inception, KKA is a family-owned, regional professional determined not to give up on my dream of being a business services and consulting firm serving clients throughout the owner, so I have to be competent and dependable to get clients Baltimore-Washington, DC region, providing multifaceted, and maintain them. I learned to take (the business) one day at full-service accounting and consulting services in a time.” accounting, assurance, tax compliance, and technology Walker’s advice to colleagues who are thinking about consulting, and business advisory services. becoming entrepreneurs is straightforward and reflects King attributes the firm’s longevity and success to, “in a her process: “Talk to several individuals who are in private nutshell, professionalism and client service.” In fact, he practice to get an idea of some of the challenges and said, “the firm’s first client in 1957 is still a client today! obstacles they encountered; make sure you have the To me, that says a lot.” Working collaboratively has also financial resources or a source to obtain financial support played a part. “We have been successful in growing our for the business; develop a marketing plan or strategy for market share within this metropolitan area by partnering the growth of the business and how to market yourself; and participating in teaming arrangements with other and don’t give up if it is your desire to be a business firms to secure various engagements in the state and local owner.” government arena,” King said. That is only one way in which KKA has faced challenges ANTHONY G. KING, CPA, CGMA in keeping the entrepreneurial business going over the years, including changes in how business gets done. “We For Anthony G. (Tony) King, CPA, operate in an environment that is highly competitive with CGMA, a partner in King, King & respect to differentiation among regional and local CPA Associates, P.A. (KKA), in Baltimore, firms,” said King. “The proliferation of, and advancements Maryland, entrepreneurship is all in, technology over the years has enabled CPA firms to in the family. His introduction to expand and deliver services beyond a ‘home base.’ For the concept began when he was example, our business and individual tax clients are located 16 years old and his father told him that “if you want in approximately 15 states across the country and also to get your driver’s license, you have to come to my include a handful of expatriate U.S. citizens living abroad. office and work on weekends and holidays.” That meant Twenty years ago, delivery of these services would have going to work for Benjamin L. King, CPA, Maryland’s first been problematic from a technology perspective.” African American CPA (1957). “After spending my high King sees minority-owned firms as important to the ability school and undergraduate college years working for the of newcomers to the profession to find career paths that ‘family CPA firm,’ I transitioned to corporate America in senior management positions in Atlanta, New York, and SPRING 2019 | SPECTRUM 23 Charlotte,” he said.

might not be available in larger corporate settings. “Many government and not-for-profit organizations. The of the minority-controlled CPA firms provide opportunities firm’s goal is “to provide the highest quality of timely for new hires to participate in the firm’s entire service professional service to our clients,” she said. “We are lines of business,” he said. “Unlike many of the Big 4 and committed to extending our services to areas that larger national firms, many of our minority-owned firms do not return an immediate financial yield. These will not have the requirement to be assigned to a specific extensions into youth and other community efforts functional area, such as audit, tax, or consulting.” serve as a constant reminder to the partners and staff Commitment to that entrepreneurial spirit is essential of the circumstances “from whence we came. We live to success, in King’s eyes, along with creativity and and work the mandate to lift as we climb.” collaboration. “Perseverance! Think outside the box in your methods of service delivery! Be open to reaching We live and work the out to seasoned firm owners and develop partnering mandate to lift as we climb.” relationships, where possible, with well-established firms.” KKA lives the Lifting As We Climb motto through consistent Smith attributes her success to “being blessed with participation in and support of local chapter NABA a loving family and friends, and the opportunity to activities, providing scholarship funds to the chapter for work with wonderful people like my partners Ralph third- and fourth-year accounting majors, and donating J. Grant, CPA, JD, Ravinder Singh, CPA, and Miranda pro-bono services to local business incubators and small- Beasley, CPA, and learning audit by working with business resource development centers. Charlie Adams, CPA, Don White, CPA, and associates and staff who each share the goal of helping CHARLENE R. SMITH, CPA our clients to prosper in decision-making factors concerning their economic and social welfare.” Charlene R. Smith, CPA, a partner While her path may have been different, Smith’s who has been with Grant & challenges and rewards have been similar. “The Smith, LLP, for 40 years, moved to greatest challenge is competing with majority firms,” entrepreneurship after witnessing she said. Over the years, “daily changes in technology what she saw as unfairness and the decreasing number of blacks with accounting experienced by minority majors” have been among the changes she has seen. businesses. “After graduating from UC Berkeley, my “Rewards include being a primary firm in the Oakland first job was at the Internal Revenue Service (IRS) as East Bay Area that has provided the training for many a field revenue agent,” she said. “Too often, I saw minority accountants to become CPAs and helping the small-business minority owner not get the same them to start their own businesses; seeing our staff kind of settlements that the non-minority companies and clients, and their families, grow and prosper received, because they did not have an accountant over the years,” she said. The firm also has invested or CPA representing them. It was on one of those 40 years of supporting Oakland youth baseball and days that Ralph J. Grant called to ask who was ready NABA’s scholarships, and 25 years in supporting to leave the IRS. On his second call, I agreed to resign a high school program, the Accounting Career from the IRS and join the CPA firm of then-Adams, Awareness Program (ACAP) — we continue to work Grant, White & Co. (Charlie A. Adams, Ralph J. Grant, with organizations that encourage youth and peers to and Donald R. White).” A deciding factor, she recalled, was that “I would have an opportunity to help minority-owned firms in tax return preparation, planning, and representation before the IRS.” She became a partner in four years. Smith’s department prepares returns for individuals, corporations, trusts, and not-for-profit organizations. The firm also provides tax preparation, accounting, and audits for large corporations and multi-state franchise restaurant businesses, and audits for 24 SPECTRUM | SPRING 2019

believe in their best and open doors of opportunity because mainstream firms hire black accountants rather than setting obstacles to success.” more now than in the past and provide increasing Minority-owned firms provide important resources opportunities. “There might even be fewer African for members of NABA, according to Smith: “the same American-owned accounting firms than in the as any other CPA firm, including the opportunity to 1990s,” he said. “The younger generation doesn’t earn their CPA license and work with caring people.” want to pick up the burden.” Smith’s advice to colleagues thinking about becoming Part of Willie’s business philosophy is that “we entrepreneurs is to be prepared for life without paid aggressively go after [new employees] on college vacations, and to “set your goals for your professional campuses,” he said. “We don’t hire at the top of the and personal life. Know what it will cost. Decide and firm. If we don’t give young people an opportunity, stay the course.” who will?” Though his initial advice to colleagues thinking about GEORGE WILLIE, CPA, CGMA starting their own accounting or financial services firms is “Run!” and “Be prepared for a long drought,” Willie still There was no special training or sees opportunity in entrepreneurship. “Be technically preparation for George Willie, CPA, strong, take care of your clients, and demonstrate loyalty,” CGMA, managing partner with he said. “Join NABA in college, as well as AICPA and state Bert Smith & Co., to become an societies. Be involved. Teach and speak.” entrepreneur. “I was thrust into Willie credits his success and longevity in business to this role,” he said. “I saw myself as a commitment to accounting and to building a legacy working in economics,” he said, but “I did a stint in of service. His contributions to entrepreneurship public accounting after my undergraduate work and in the profession can be seen not only in his NABA I found my love. I was teaching when I decided that involvement, but in AICPA’s new Private Companies public accounting was where I belonged.” Practice Section (PCPS), which will co-sponsor one Willie, who was one of the first black accountants student for an internship during the 2020 tax season in the country to earn the CPA, sees having the and award up to $20,000 per student to assist with right skillset and attitude as the success factor tuition in their final year of school. for entrepreneurs. “If you are technically strong, AICPA created the program in Willie’s honor and you can make the pivot,” he said. “I was totally recognition of his service as a former chair of AICPA’s unprepared, but I learned to cope, especially where PCPS Executive Committee and the AICPA Minority blacks and black CPA firms were not accepted. We Initiatives Committee. “Throughout his over 35-year were seen as a sideshow.” career, Willie has promoted the benefits of a career What drives Willie is a determination to “create a in accounting to students and young professionals in legacy,” he said. As part of that commitment to the pursuit of the CPA designation,” according to AICPA. future, he supports not only people of color but “The George Willie program is one of the ways women in the profession as well. “We’re the only firm AICPA is working to broaden the pipeline of talent with 80 percent of compensation going to women.” entering the profession. A more diverse and inclusive Willie’s business philosophy is, in part, to encourage profession will be better equipped to address the shifts the younger generation. “I am a cross between in entrepreneurial capital that will result from these Marcus Garvey and Malcolm X,” he said of the changing demographics in the U.S.” example he sets for newcomers to the profession. “I To Willie, success and longevity in business come would love to be the auditor and adviser for every down to a commitment to accounting and to building African American business. How we look at things is a legacy of service. “I strongly believe in the NABA how it should be.” motto of Lifting As We Climb,” he said. “You won’t The challenges of being a minority business leader or find a more dedicated member.” ▲ owner continue, according to Willie, perhaps in part SPRING 2019 | SPECTRUM 25