With more than 30 years as a CPA, Jay Mangel is a partner in audit and financial advisory at Crowe Horwath’s Sherman Oaks office. He works with companies in Southern California in the consumer products sector. Mangel received the Most Trusted Advisor award from the Business Journal in 2012. FIRM: Crowe Horwath LLP SPECIALTIES: Consumer product companies with a subspecialty in apparel and fashion. Also represents non-regulated, asset-based lenders. HOBBIES: Golf, skiing, wine and travel Question: How did you come to specialize in consumer products and apparel? Answer: My dad was a garment manufacturer. I always loved and understood the industry. When I looked for my first job in accounting, I found a firm with a niche in this industry. I have been able to expand what I learned from my apparel clients to now serving a variety of companies that manufacture and distribute products. Do these industries present special challenges to accounting? Having clients in the apparel industry did present challenges in understanding how companies dealt with seasonality, changing fashions and challenges created by a changing retail environment. When I was just starting out, my mentor told me if I could learn this industry, I could do accounting for any company selling or distributing inventory. This was great advice. Why accounting? While in college, I received advice from a banker my dad knew who suggested that if I was going to get a business degree, I should consider accounting as the best option, based on how companies were hiring. I followed this advice and never looked back. How do you get new clients? Referrals from existing clients and a wide network of referral sources. How does your personality help you as an accountant? It takes a lot of qualities to be a good accountant and advisor. Perhaps the most important qualities for me are a high level of integrity and being very responsive to the clients. Typical work week: Varies throughout the year, but during our busiest times I can work 60-plus hours. Favorite out-of-the-office activities: Golfing, traveling and sharing a great bottle of wine with a friend. How did your specialty in apparel impact your career? Manufacturing and distribution is an important national industry vertical for Crowe. Initially, most of my clients needed assistance in obtaining financing for their operations. Learning this part of the business allowed me to develop a specialty in representing non-regulated, asset-based lenders. At Crowe, auditing and providing consulting services to banks and financial institutions is a large part of our practice. The niche I developed fit in nicely with Crowe’s financial services practice. If you could change one law or accounting rule, what would it be? More exceptions to GAAP (General Accepted Accounting Principles) for private companies. Many of the accounting rules offer no benefit to private companies and are costly to implement. Most memorable experiences: The first time I played a key role in helping a client sell their business. I had met the client when they were doing less than $5 million in revenue. Within a couple of years, and with advice from myself and my team, the company grew to more than $50 million in revenue. It was on pace to do close to $90 million when my client sold the company. When it eventually closed, I was on cloud nine knowing that we were a part of the team that brought our client’s goal to reality. What gives a “power accountant” his/her power? I don’t think of it as having power, but I know having confidence and being smart plays a key role in servicing clients and working within a firm. Your role within the firm: Rainmaker and manager. I have always been able to attract and bring in business, but managing the relationship is key to my success. Your life at tax time: While I used to do a lot of taxes, I am down to preparing two returns a year: my mom’s and my own. I think most people believe every accountant has a tough tax season. Depending on the niche you specialize in, everyone has a busy season or two, but they are all different. What do you wish clients would do more often? Ask for advice earlier. Advice for others considering a career in accounting: If you choose a career at an accounting firm, look for one that lines up with your values and has what you’re looking for in a firm. At Crowe, partners have a hands-on attitude, so you’ll have the opportunity to work with them directly at times. The sky can be the limit in accounting. Our chief executive likes to say that while he’s been at Crowe his entire professional life, he’s had many different careers.
