recent – and I use the word recent liberally – college graduate, one of my few
regrets is that I didn’t take advantage of the opportunity to spend a summer studying
abroad. I generally excuse this away because I had my hands full juggling my
course work and extracurricular activities and was always eager to return to my
native New York. If I was being honest with myself, the real reason was that I could
never seem to navigate the financial and administrative aspects of applying to
take classes overseas during the summer.
those of you who are still in school and seeking to broaden your horizons,
Michael Eisenberg, a Los Angeles-based
CPA/PFS, recently spoke to U.S.
News & World Report to educate their audience on how to pay
for short study-abroad trips.
article encourages students to look for scholarships and aid to pay for the
parts of a short-term educational trip not eligible for 529 plan funding.
The Patient Protection and Affordable CareAct (health care reform) seeks to change the
way health insurance premiums are established, just as the Act Providing Access
to Affordable, Quality, Accountable Health Care did in Massachusetts. As CPAs’ small business
clients begin to implement the requirements of health care reform, CPAs need to
understand two significant ways in which their small business clients, and
their own small practices, may be affected.
The Small Group Insurance Market and Increasing
The first big
change that health care reform brings is the prospect of “merging” (formally or
via rating rules) the small group insurance market with the individual
insurance market. The individual market typically has the highest costs of all
the health insurance markets due to the actuarial risk of a single covered life
and the time and expense of selling single policies. The small group market, historically
50 employees or less, but in the case of health care reform, 100 employees or
less (mandated to expand the risk pool base of small businesses who might also absorb
the cost of the merged individual market), is significantly less risky and thus
has lower premiums. As has been the case in Massachusetts, if the formal merger
of the two markets’ risk pools takes place in your state, it may cause small business
premiums to increase dramatically. If you or your client presently have more than
50 employees and are covered in your state’s existing large group market risk pool,
premiums could rise once the small group level increase to 100 employees becomes
effective in 2014.
Now that you’re back to work after this year’s Memorial Day
celebrations, you and your colleagues may be looking for additional ways to say
thanks to the men and women who protect the U.S. and its interests. Good news! There
is an exciting opportunity for CPAs to use your talents to do just that.
It is all part of the Veteran
Fast Launch Initiative, a combined
effort of the AICPA and SCORE.The program connects veterans who want to start and
grow their own businesses with CPAs from across the country. The aim is to help
veterans, their spouses and families succeed as small business owners. Practitioner volunteers provide up to five hours of time at no
charge to veterans.
Do you have firm partnership in your sights? If so, good for
you! Although there is no “one size fits all” approach for a senior manager to become
partner, there are steps CPAs can take to strengthen their skills, expand their
knowledge and develop personal characteristics that can bring them closer to
achieving their goal. Beyond working hard to stand out, here are some things we
did that helped us better position ourselves to become partners at our firm, Lattimore Black Morgan & Cain, PC. You
may want to consider these tips as you set out on the road to partnership.
A small business gains access to sophisticated
technology it could not previously afford. A mid-size company reassigns its IT
staff to strategic projects that encompass far more than day-to-day tech
operations. A large organization is able to tap into enhanced business
intelligence and put it to work more quickly.
These are some of the success stories associated
with cloud computing. Cloud technology is quickly becoming an integral part of
everyday business life, smoothing the way to valuable business process
outsourcing opportunities and making it easier to identify and use critical
business intelligence. In fact, over 65% of IT security professionals reported
using some type of cloud technology for mission-critical applications and data,
according to the AccelOpps Cloud Security Survey 2013. And CPAs
are integrally involved in many organizations’ shift to the cloud.
Before starting my own CPA firm, I worked at a large,
national accounting firm and found I was never actually able to use up my three
weeks of annual vacation time. However, when I went to work for a local boutique
CPA firm, I only got ten annual vacation days. There was also no policy for
telecommuting and no flexible schedules or incentives for being more efficient
than expected, such as being rewarded with more paid time off. “Face time” in
the office ruled. Initially, I was okay with limited vacation, but a couple of
years in, I realized that I would really value more flexibility as part of my
There are tens of thousands of hours of video being uploaded into YouTube every day. Don’t let the hard work you put into producing a video for your firm or practice get lost in cyberspace. Implement a few basic optimizations to make it easier for users to find your videos as they browse and search.
1. Use keywords in your filename
Rename your video’s filename to match the topic of the video. For instance, if your video is about small business accounting, rename your video file from “video.mp4” to “small-business-accounting.mp4.”
The 2013 AICPA Spring governing Council meeting kicked off on Sunday and just wrapped up. Take a look at the three-day meeting through the eyes of social media. (Email subscribers: View the full story on AICPA Insights.)
As the economy continues to recover, the impending
retirement of our nation’s Baby Boomers will create a labor shortage far
greater than any we have experienced in the U.S. Professionals with the right
skills will have their choice of employment opportunities, which will drive
demand – and salaries – up. CPA firms that provide truly motivational and engaging
environments will win the recruiting and retention race.
That’s why learning to manage the challenges and possibilities
of virtual work teams is a must for today’s current and emerging partners. The
need for increased workplace flexibility generates passionate conversations by
CPA firm leaders and team members. Employees are challenged to keep a steady balance
between their work and their personal lives as demands in each continuously
change. Some aren’t willing to make the firm their top priority.
read so many great quotes from CPAs every day and have such a limited space to
summarize them on the blog– it can get to be a bit frustrating. As I began drafting my bi-weekly ‘In the
News’ post, I decided to switch things up this week.
present to you four helpful quotes from CPAs. Hey – everyone can use a little
help now and then.
As Kelli Grant reports in MarketWatch, going to summer camp
may be a rite of passage for children, but for parents, it seems more like an
initiation into the woes of tuition payments.
What parents might not know is
that camp expenses can translate into a tax break.
week, my blog
post discussed that Integrated Reporting <IR> represents an important
shift in corporate reporting in which CPAs can play a key role providing
consulting services, implementation or report preparation. In today’s blog, I’m
drilling down into some of the key concepts of the recently released Consultation Draft of the
International <IR> Framework that are important for CPAs to understand.
often ask me, “Ed, when do you think we’ll finally see tax reform?”
“Not before 2014,” I respond with assurance.
“How can you be so sure, Ed?” they say.
ball never lies!
started getting a bit nervous about sounding so confident. After a little digging, I found out my crystal
ball had once predicted that the Titanic was unsinkable, yet it went down on
April 15, 1912. How’s that for foreshadowing?! That forced me to do some soul
searching and thinking.
to November 2011. I was sitting next to Pat Thompson, who chaired the AICPA Tax
Executive Committee. We were listening
to Don Longano, former House Ways and Means Committee Chief Counsel and
Washington tax insider, share his views on the prospects for tax legislation at
the National Tax Conference.
Seal of the U.S. Securities and Exchange Commission. (Photo credit: Wikipedia)
Not too long ago, I heard Craig M. Lewis, Director and Chief
Economist of the Securities and Exchange Commission’s Division of Risk, Strategy
and Financial Innovation, give a presentation on the SEC’s new predictive
accounting quality model, nicknamed “RoboCop”
by the trade press, which will enable the SEC to monitor and flag reports
for further review.
What makes AQM so useful, Mr. Lewis said in
an interview with Merrill Compliance Solutions, is that, by using XBRL, the
tool can be “applied broadly to the entire filer space.” Previous versions of
the tool used Compustat data, which did not include all filing companies. With
XBRL, 100 percent of filing companies will be analyzed by AQM.
According to a new survey
conducted for the AICPA by Harris Interactive, only 39% fully understood the
burden student loan debt would place on the future and 60% have at least
some regret over the choice of education financing. Furthermore, 75% have
made a personal or financial sacrifice--such as delaying a home purchase and
postponing marriage and children--because of monthly student loan payments. The
press release includes
tips for parents and students on both saving for college and managing loan
payments. The below 360 Degrees of Financial Literacy infographic, Realities & Regrets of Student Debt, highlights the
reporting in the U.S. and around the world has often developed as disparate
strands of reporting. Stakeholders have
grown to seek more and more information in a number of different reporting
vehicles, but do they really seek the details or are they trying to drive
better corporate practice?
Reporting <IR> represents an evolution of corporate reporting that
focuses attention on how an organization creates value in the short, medium and
long term. An integrated report, a key
output of Integrated Reporting, is a concise report primarily
intended for investors of financial capital, although other stakeholders who
have an interest in the organization’s ability to create value will also
benefit from such communications.
The not-for-profit accounting and auditing landscape
has undergone significant change in recent years. In this podcast, CPA
not-for-profit experts Chris Cole, Jennifer Hoffman, Frank Jakosz and Andrew Prather discuss current NFP issues that face CPA preparers and
auditors and describe how the AICPA’s newly updated Not-for-Profit Entities
Audit and Accounting Guide can be a resource for NFPs. Discussion topics
include recent Financial Accounting Standards Board updates, changes in the NFP investment arena, revenue
recognition, gifts-in-kind valuation, and taxes and regulatory considerations. Ken Tysiac, senior editor for news with the Journal of Accountancy, moderates. [Email subscribers: Visit AICPA Insights to listen to the podcast.]
CPAs know how seriously our profession takes ethics. The AICPA’s Code
of Professional Conduct
applies to all AICPA members. In addition, many state CPA societies and state
boards of accountancy either incorporate it by reference or use it as a
starting point for their codes. The Code of Professional Conduct provides guidance on areas such as client
relationships, maintaining independence and adhering to the technical standards
of GAAP, GAAS and others.
The AICPA's Professional Ethics
Division acts as the steward of the Code of Professional Conduct, taking a 360
degree view of ethics. It publishes a free
Speaking, which helps CPAs better understand ethics-related issues
(send an email to email@example.com to
subscribe). The Professional Ethics Division establishes, interprets
and enforces these standards. To carry out its charge, the Professional Ethics
Division provides a hotline
that helps members understand and apply the Code of Professional Conduct
properly. What’s more, monitoring hotline inquiries is one of the ways the Professional
Ethics Division identifies topics that require standard setting. Using this
real-time feedback, the Professional Ethics Division has been able to tackle
topics that are important to the profession.
The latest exposure
draft issued by the Professional Ethics Division reorganizes
the Code of Professional Conduct to make it easier to navigate, understand and
apply. Watch this video to learn more about the Ethics Codification project.
After this crazy,
compressed tax season, you and your employees are certainly ready and deserve a
vacation. But do you give your employees enough vacation time? How much paid
vacation time is enough? Can you imagine that the answer might someday be “as
much as they want?” Some companies are shifting toward an unlimited vacation
policy because they believe it can enhance morale and minimize stress. Although
only 1% of organizations offer unlimited paid time off, according
to a Society for Human Resource Management survey, it is surprisingly most often used at
smaller organizations. There are a number of advantages to
offering unlimited vacation time in your CPA firm. They include:
Americans money stress brought on
by lighter paychecks this year is affecting more than their wallets — it’s
taking a toll on their waistlines, friendships and the amount of sleep they get.
That’s according to results of a new survey fielded for the American Institute of CPAs by Harris Interactive in recognition of National
Financial Capability Month.
The telephone survey, conducted between March 14 and March 17,
asked 1,011 U.S. adults to name all the ways financial stress is affecting
their lives. Of those who rate their financial stress “very” or “somewhat
high,” almost half, 47 percent, said they are sleeping less; 43 percent said
they have less patience with friends or are seeing them less often and 31
percent are eating more junk food or gaining weight.
I live blogged from the AICPA's Sustainability Workshop that took place May 2 to 3 in New York City. The workshop is part of the Executive Boardroom Series from the AICPA and the Enterprise Risk Management Initiative at the Poole College of Management at North Carolina State University. Below is a replay of the entire two-day event.
Get ready to tackle some major revisions in accounting standards.
After years of consideration, the Financial Accounting Standards Board is
finalizing its approaches on three major issues: revenue recognition, leases
and financial instruments. Each of these accounting areas affects virtually all
companies in the United States no matter what their size or whether they are
public or nonpublic. And that means virtually all CPA firms are affected too.
From an advocacy standpoint, the AICPA continues
to monitor the progress of these important standards and to comment on the
exposure drafts on members’ behalf. Our goal is to help make sure the standards
are effective and can be implemented with as much ease as possible. Moreover, the
AICPA will help members understand and implement the new standards so they can
continue to provide high-quality services and comply appropriately with the
allows CPA firms to better understand, manage and grow their practices. Yet, it
can come with its own set of challenges when trying to manage and retain data,
secure IT environments and stay in compliance, according to the latest top
technology initiatives survey from the AICPA’s Information Management and
Technology Assurance Division.
North America Top Technology Initiatives Survey, conducted jointly by
the AICPA and the Chartered Professional Accountants of Canada, asked accounting
professionals in public accounting, business and industry, consulting, government,
not-for-profit and other organizations about their top 10 technology
initiatives in 2013. Here's the top 10 in the U.S. and Canada: