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11 posts from November 2015

Attracting, Engaging and Inspiring Future CPAs

Pipeline picOur commitment to the CPA pipeline is stronger than ever. Efforts of the AICPA, firms, state societies and many others have led to the number of accounting college graduates growing in the past 12 years from 45,000 in 2001-2002 to 82,000 in 2013-2014. Additionally, while about 24,000 candidates successfully completed the CPA Exam in 2008, we have averaged slightly over 26,000 since then.

The profession’s focus on the CPA pipeline has long been a priority. That will continue, with new approaches to attracting, engaging and inspiring the future generation of CPAs. We are constantly creating, implementing and evaluating programs to build the pipeline.

Over the past year, we have launched or refined many AICPA programs to align better with our goals. Our initiatives are focused on three themes:

1) Increasing the recognition of the CPA on campus;

2) Expanding reach beyond 4-year colleges; and

3) Building relationships with academics.

Continue reading "Attracting, Engaging and Inspiring Future CPAs" »

Native American Indian History Month: Dominic Ortiz

Dominic OrtizTribal, Family and Mentor Support Helped Guide Dominic Ortiz to Valuable Opportunities

In November, the AICPA along with the entire nation, celebrates Native American Indian History Month. For Dominic Ortiz, a CPA, CGMA and enrolled tribal member of the Prairie Band Potawatomi Nation, the month is about recognizing the contributions that First Nations Peoples have made to the U.S. and sharing tribal culture and traditions. It is also about honoring his heritage by using his experience as a CPA and CGMA to continually give back to the community that has given him so much.

Ortiz credits his tribe, as well as family members and mentors, for supporting, encouraging and guiding him. Ortiz began his academic career at Haskell Indian’s Nation University. While there, he became president of the American Indian Business Leaders (AIBL), a nonprofit dedicated to empowering business students.

While he was a student, he met Tom Clevenger, a CPA and professor in Accounting who was working with his tribe as a business consultant. Clevenger and Ortiz’s father, a tribally elected member of the tribal council, had become friends.

Continue reading "Native American Indian History Month: Dominic Ortiz" »

Happy Thanksgiving from AICPA Insights

ThanksgivingWe’d like to wish you a happy, healthy Thanksgiving. We are grateful for your readership, comments and continued interest in AICPA Insights. Enjoy turkey (or Tofurky) and stuffing with family and friends—and we’ll be back with more food—for thought, that is—next week.

Happy Thanksgiving.

--AICPA Communications

Thanksgiving wishes courtesy of Shutterstock.

Shaping Our Future: Driving a Relevant Profession

Christen_Tim_headshot_resizeI’m honored and excited to be taking on the role of chairman of the AICPA Board of Directors at such a pivotal time in our profession’s evolution. Although today we enjoy tremendous success and respect, we must acknowledge that transformative changes in the business environment pose many potential risks to our relevance. We work in an evolving marketplace, one that’s defined by new technologies, complexity, specialization, a changing workforce, globalization and other mega trends. We know that just because something worked in the past doesn’t mean it will continue to work in the future. Now it’s incumbent on us to forge solutions that will preserve our relevance going forward.

Fortunately, CPAs are starting from a position of strength. Let me share my own story with you.

Like many AICPA members, I’m a first generation professional. I grew up in the small farming town of Belmont, Wisconsin, about 65 miles from Madison. I’ve spent my entire career with Baker Tilly Virchow Krause, except for a two-year stint when I worked as a management accountant for one of our firm’s clients, an automobile dealership. The owner taught me something that’s critical to our profession: a sense of urgency. Emil’s dealerships measured productivity every day and frequently asked customers for candid feedback. I thought these were brilliant ideas and put them to work when I returned to Virchow Krause. We began questioning the established rules and implementing the lessons of urgency and action. We measured revenue in real time and solicited immediate feedback from our employees and clients. Our sense of urgency helped us grow from a small Wisconsin firm to the 13th largest firm in America. We didn’t wait for the marketplace to determine our future for us.

Continue reading "Shaping Our Future: Driving a Relevant Profession" »

Holiday Shopping: A Cautionary Tale

Holiday present

 Holiday Shopping: A Cautionary Tale

As a teenager, every year I knew where I would be the Saturday before Christmas: getting dragged from store to store by my father, who inevitably waited until then to go shopping for my mother’s gifts. This annual exercise in procrastination and family bonding was a recipe for arguing and, more importantly, left my dad no opportunity to shop around for the best deals.

Here’s how you can avoid these holiday shopping pitfalls and get good deals, stay on budget, and remember to factor in more than just gifts when you calculate your holiday spending goals.

Continue reading "Holiday Shopping: A Cautionary Tale" »

Women's Initiatives Executive Committee CPA Firm Gender Survey

18866-386 WIEC CPA Firm Gender Survey Infographic_HighRez

Click here to download a PDF of this infographic.

How to Retain Retirement Planning Clients – For the Long Term

Retirement planThe latest AICPA PFP Trends Survey, a quarterly poll of CPA financial planners, yielded interesting insights into the impact of strong client relationships.

This year’s market fluctuations could have really thrown clients into a tailspin of concern about their retirement savings and resulted in them making impulsive decisions about leaving the market. Despite the market volatility, a majority of CPA financial planners’ clients exhibited resolve, with only 16% of their clients contacting their CPA with concerns about getting out of the market. The survey quantified the impact of specific reasons for this tenacity, including client education, age and their relationship with their CPA financial planner.

You can have an impact on your clients’ anxiety, or lack thereof, about market fluctuation and long-term financial planning. According to the survey:

Exposure to a CPA financial planner positively impacted their clients’ response to market swings. Clients who have a long-term, more established relationship with their CPA were more confident than new clients. The scale of 1 (fearful) to 5 (confident) has more established clients rating a 3.6, with newer clients feeling slightly fearful at 2.5

Furthermore, clients who were educated about the market rated their confidence level at 3.4 versus 2.4 for those with little interest or knowledge.

Continue reading " How to Retain Retirement Planning Clients – For the Long Term" »

Six Tips from a 30-year EBP Auditing Veteran

EBP auditsI tackled my first employee benefit plan audit in 1984. It was a full-scope defined benefit plan audit, and I’m proud to say that I still have that same audit client today. As a sole practitioner with three staff members, I spend about 30% of my time conducting 12 EBP audits annually. I also peer review EBP audits for other firms.

Much has changed since 1984. Between 2006 and 2015 alone, the AICPA Employee Benefit Plans—Audit and Accounting Guide increased two to three times in size. The number of service providers and the types of investment options have also grown. Some firms used to use EBP engagements as “fill work” during slow periods, but with the complexities that we now see in these plans, specialization is a necessity.

When I speak at conferences and visit firms as a peer reviewer, I often get questions from CPAs looking to get into EBP auditing or to improve their practices. The following are some frequently asked questions and answers that I hope you’ll find helpful:

Continue reading "Six Tips from a 30-year EBP Auditing Veteran" »

CPAs Give Back This Veterans Day

VeteransIn this country, we owe a debt of gratitude to veterans. Each year, more than 180,000 service people exit the U.S. Armed Forces after their loyal service. As they return to civilian life, veterans can find financial advice, guidance on how to run a business and help planning for the future from local CPAs.

Since 2011, the AICPA has partnered with the mentoring and training organization, SCORE to connect veterans with CPAs across the country. Through the Veteran Fast Launch Initiative, CPAs have an opportunity to volunteer and provide up to five hours of free financial advice to veterans about starting or growing a business.

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How to Help Your Clients Get Ready for Retirement

Retirement pigClients approaching retirement may be eager to make lifestyle changes, find a second profession or hobby, or even punch out their bucket list. Before they retire, they should consider income tax planning, healthcare coverage, long-term recordkeeping and housing options as part of their preparation plans.

Minimizing Taxes and Healthcare Costs

Clients want to know how much retirement is going to cost and how you can help them minimize those costs. Here are four strategies to consider with your pre-retiree clients:

Before collecting Social Security: Help your clients lessen their tax brackets in retirement by timing ROTH IRA conversions or traditional IRA withdrawals to fully use lower tax brackets each year from ages 60 to 71.

When transitioning from employer-sponsored health coverage to retirement health coverage: Your clients must consider COBRA along with Medicare and Medicare supplemental policies so they can avoid gaps in coverage. Help them do this by offering them education and guidance. Also understand that Medicare supplemental policies do not consider COBRA as creditable coverage, so make sure you consult with a qualified professional that specializes in Medicare and Medicare supplemental policies whenever your clients have COBRA or are continuing work with employer or union coverage after age 65.

Continue reading "How to Help Your Clients Get Ready for Retirement" »

Important Changes to LinkedIn Groups Have Arrived

LinkedInAcross the social media space, LinkedIn is one of the most widely adopted platforms among CPAs. In an effort to simplify the platform for users, LinkedIn will be making some changes to its popular groups feature over the coming weeks. Below are some of the key changes that will improve the experience.

  • All groups are now member only. Simply put, this means that every group will require a request to join. Before, some groups and conversations were open to the public. However, now you will have to be a member of any group you would like to participate in.
  • Standard vs. Unlisted. All LinkedIn groups will fall into these two categories, compared to the multiple settings previously offered. One of the biggest impacts this change will have is that unlisted groups will no longer show up in search results. If you’re having trouble finding a group, visit the website of the organization that runs it. They will typically have the links to all social networks they have a presence on.

Continue reading "Important Changes to LinkedIn Groups Have Arrived" »

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