2012s

Dec 3, 2012 ∞

Energy Futures

In the financial markets, “energy futures” refer to that elusive breed of investment instruments known as derivatives. The idea is that you can buy a contract now, for a set amount of energy (say, fuel) in the future. It’s what gave Southwest Airlines the leg up in the early 2000’s and allowed them to keep their prices so low for so long – energy futures, a good thing (potentially).

In a converse, but no less elusive, way, the same holds true for the actual future: it’s made up of the energy from today. The energy you expend today is shaping your tomorrow. Which means that to change your tomorrows, you have to change your todays. The future isn’t powered by, “Well I’d like to do that one day.” It’s powered by, “I’ll do this now, for my later.”

That’s all well and good of course, and perhaps we’ve all heard it before, but how do I actually change my todays? Habits have a way of staying, well, habitual. Never, never underestimate the power of inertia (something I have to continually re-learn). Inertia can be broken by a massive redirection, or by small shifts in weighting. Circumstances probably dictate which is better: the latter being preferred as less painful, but the former being required when it’s a matter of survival. But both require energy, and here is the crux of my argument: to change your future, stop managing time, and start managing energy.

Pricing Justice

We want to see our customers treated fairly — it’s in our CPA DNA. Somewhere between learning debits and credits, independence, objectivity, and integrity seep into our subconcious. I’m not quite sure how it happens, but I think it’s what leads to CPA’s being consistently ranked among the most trusted advisors, ahead of doctors, lawyers, and bankers. To be honest, it’s one of the things that attracted me to the profession.

That desire for upright honesty and fairness surfaces in a variety of different ways: the services we provide, the counsel we give, the interactions we have with third-parties on behalf of our customers…and, in our approach to pricing.

A Profession In Search of An Identity

What is a CPA?

Well…we’re the only ones licensed to perform financial statement audits. The federal government requires it for public companies, and the states issue the licenses. But is this what defines us? Is our identity basically defined by regulatory statute?

“Bringing integrity to information.” That’s sorta what an auditor does – makes the financial information believable, adds credibility. And even if we don’t perform audits, the public turns to us when it wants an honest opinion: when it needs to be objective and independent.

“Making sense of a changing and complex world.” That’s what the CPA Vision Project proposes. I have very deep respect for the folks involved in the project, though this statement sorta leaves me wanting for more. “Making sense of a changing and complex world” feels a little vague, and lacking in a sense of direction to me. I sorta feel like it’s a definition for being “human”: we’re all just trying to make sense of the changing and complex world we live in. But what makes the CPA unique? What do they bring to the table that others don’t?