June 2001

Industry Profile

Q: How long have you worked at Windsor Management Corporation?

A: Since 1983.

Q: What industry is your company most closely associated with?

A: Commercial real estate ownership and management.

Q. What are your primary functions and responsibilities?

A: Financial reporting, treasury and cash management, tax, accounting, lease and contractor negotiations.

Q: What are the biggest differences between your primary work-related concerns and the work-related concerns of CPAs who belong to other industries or public practices?

A: Primarily, I am engaged in the decision-making process of running a business and every decision I make impacts the bottom line. I would think this is a very broad scope of responsibility as opposed to other CPAs in industry and in public practice.

Q: What are the similarities?

A: The similarities relate to everything I learned in public practice, including my work disciplines, which are rooted in my public and private experiences.

Q: With respect to your industry and the accounting work you conduct there, what are the most significant developments to take place over the last five years?

A: Over the last five years, the industry has gone from a “recession,” which ended around the beginning of 1996, to a “frenzy” in the summer of 1999 to the current “slow down.” The pressure for decision-making and management skills needed to navigate any business in this type of atmosphere has increased. Deal making with regard to lease negotiations and the buying or selling of property has become much more complicated, whereas the retaining of a specialist, legal or tax, has become much more of a common practice.

Our accounting is very basic, but the trend I see here is to more sophisticated and expensive software applications needed to run our business. We now have property management software and financial projection software that we didn’t have five years ago. The time spent on information systems and information system planning has increased. More information is available for decision making as a result of technology and, of course, the Internet and more mobile communication devices. Communication skills, both oral and written, have never been more important.

Q: Do you consider these developments to be reflective of broader developments that have occurred in the accounting profession?

A: Technology, hardware and software, and telecommunications are definitely reflective of broader developments not only in the accounting profession, but in the total environment of doing things.

Q: What are some of the other trends in your line of work? To what do you attribute them?

A: In addition to the communication skills needed, people need a broader base of knowledge to be successful. A building owner must wear many different hats as a result of the information available. The management of the information system flow has become much more important to be successful.

Q: What are some of your core objectives for the future?

A: Our core objective is to build a financially secure tenant base in case of a further slow down in the industry and/or the economy. Better cash management has always been a priority. Management of the information system for better decision making is another objective that we need to improve.

Q: Do you expect accountants outside your industry to face similar sorts of challenges?

A: Improving the decision-making process is always a challenge.

Q: With respect to the entire accounting profession, what are the advantages of working in your industry? Conversely, what are the disadvantages?

A: I am prejudiced. The accounting profession provides the best skills for any industry. My personal opinion is that the accounting profession has to improve in people and communication skills. Overall, I don’t see any real disadvantages. Maybe the work is very detailed and tedious at times.

Q: Why is the work you perform important to accountants outside your industry?

A: Improvement of people and communications skills is always important.

Q: How do the major issues currently surrounding the entire accounting profession affect your work? If they don’t affect you right now, will they in the future?

A: Since I am a CPA in industry, there is probably no impact now or in the future unless some new accounting regulation comes along that has a major impact on the real estate industry.

Q: Do you believe accountants in public practice have an accurate understanding of the work you perform? If not, why?

A: Most of my decisions have a direct impact on the short-term and long-term success of our business. The public practice accountant’s decision-making focus is on the “opinion.”

Q: Do you believe the Society adequately represents your interests? If not, what could be done to make sure you receive fair representation?

A: I think the Society is already improving in the areas of representing CPAs in industry.

Q: Overall, have you enjoyed working for an industry? Why or why not?

A: I enjoy the accounting profession—whether it is working in public practice or private industry, teaching, or recruiting students into the accounting profession.