422 posts categorized "Guest Blogger" Feed

9 Facts That Can Make or Break Your Firm’s Future

Grow your practiceThe rules of engagement for business are changing. Today’s world is complex, evolving, extremely high-tech, and fast. Whether you’re a small, one-person shop or a partner at a large or global firm, you’re probably aware that your most valuable current (and potential) clients are unwittingly converting business as we knew it into business-on-the-fly. And they’re bringing new methods that can also prove beneficial to the CPA.

Our societal landscape is significantly different than it was just a decade ago. There are new faces, new modes of interacting, and technology has inarguably and almost completely taken over. Is there a way to sustain and strengthen your practice in this ever-evolving world? Absolutely. In fact, now is an incredibly opportune time for your firm, especially considering the statistics.

Continue reading "9 Facts That Can Make or Break Your Firm’s Future" »

Why Pets Make the Best Coworkers

Peaches - Julia MorrissMy dog Peaches, a cuddly beagle mix, is the love of my life. As with most pet owners, I spend a lot of time with my dog and miss her when I’m not at home. The days that I telecommute are often the highlight of my week because I can relish her company all day. Having a dog at home is beneficial in many ways:  I stand up and walk around more often, get outside for fresh air a few times a day and feel less stressed because I can give Peaches regular snuggles.

One of the benefits of being a CPA sole practitioner, or working for a firm that utilizes virtual offices, is that you can often work from home, allowing you to be with your pets all day. Some CPA firms even allow employees to bring their dogs to the office.

Continue reading "Why Pets Make the Best Coworkers" »

Financial Statement Changes: 5 Steps for Nonprofit Boards

NFP boardAs accounting and finance professionals, we’ve been talking about the coming changes to not-for-profit financial statements for some time now. But many others haven’t heard about the changes, including some not-for-profit board members. Board members are responsible for oversight of the financial reporting process, and as such, they’ll want to take an active role during implementation of the new guidance.

The Financial Accounting Standards Board's (FASB) Accounting Standards Update (ASU) No. 2016-14, Not-for-Profit Entities: Presentation of Financial Statements of Not-for-Profit Entities, was issued in August 2016. The standard applies to all not-for-profits and is effective for years beginning after December 15, 2017. Early adoption is permitted.

Continue reading "Financial Statement Changes: 5 Steps for Nonprofit Boards " »

The Next Generation: Empowering Future Firm Leaders

Leadership 2“Leadership and learning are indispensable to each other.” –John F. Kennedy

Who represents your future? What’s your professional legacy? How do you know whom to trust with your business when you retire?

Most firm owners know the future of their business relies on the strength of their successors—the individuals most capable of growing and maintaining both client relationships and the service teams within the firm itself. What’s less understood is HOW to identify, nurture and promote the best and brightest candidates in practical terms. What can firm founders and owners do to ensure they’re selecting and preparing the right people to carry on their firms as eventual partners and even owners themselves?

The first task is to recognize the rising stars within your firm. These people are the strongest innovators, always looking for new opportunities to expand client services and grow the business. They’re the ones who naturally lead, and embrace opportunity to build strong teams within their professional circle. And they’re never afraid to assume more responsibility—for not only the daily workings of the firm, but also for the long-term prospects of the business—which includes being personally invested in both client relationships and the firm’s reputation. But once you’ve identified these potential stars, how do you invest in them?

Continue reading "The Next Generation: Empowering Future Firm Leaders" »

8 Ways Reading Can Help You Get Ahead at the Office

BookReading is good for your career. Don’t believe me? Think of all the successful people who make reading a priority – Bill Gates, Oprah Winfrey, Mark Cuban, Warren Buffet and Mark Zuckerburg, to name a few. And they aren’t just reading Facebook updates, emails and tweets. They are committing time to reading actual books.

Why does reading a book matter? The benefits are plentiful and aren’t just limited to reading non-fiction. One important way reading helps your career is by helping you develop empathy. When you connect with a character and begin to understand their feelings and emotions, you are increasing your empathy. You gain valuable exposure to other perspectives, which can help you better relate to your coworkers and clients.

Continue reading "8 Ways Reading Can Help You Get Ahead at the Office" »

Are You Overlooking Prospective Clients?

Millennial clientsThere is a huge opportunity that most practitioners are ignoring, or worse, dismissing: an untapped client base.

This population doesn’t fit the profile of the typical client. They aren’t in their early 60s, near retirement and don’t fit the typical client profile. They haven’t worked and earned and leaned on you to help them make it to the retirement “finish line,” where they’ll begin to really enjoy the fruits of their labor. In fact, perhaps to the chagrin or confusion of their baby boomer parents, they’re quite different.

As you may have guessed, I’m talking about millennials. Before you tune out, consider the following:

Continue reading "Are You Overlooking Prospective Clients?" »

The Firm of the Future: Building Value by Evolving

Firm of the futureWhen starting an accounting practice, it’s important to think about the long-term value of the firm. True forward thinkers might even ponder what their end game looks like; is their goal to merge with another firm or sell their firm? To be succeeded by a partner or family member? In real-world terms, that means thinking about inventive and even unconventional opportunities to expand services beyond the realm of tax preparation, auditing and advice with the goal of appealing to the broadest possible client base. In a world where insurance companies, stock brokers, banks and even franchises like H&R Block are expanding client services to include planning for retirement, education or even simply, how to manage cash flow to maximize financial security, no firm can afford to neglect these areas of their clients’ lives. Competition is becoming too intense.

Continue reading "The Firm of the Future: Building Value by Evolving" »

Rethink Your Nonprofit’s Chart of Accounts, Part II

NFP Chart of accountsLast month we published the first installment of a two-part series discussing implementation of the new not-for-profit financial reporting model, as viewed through the lens of the entity’s chart of accounts. 

By now, you likely have taken some steps to prepare for implementation of the new not-for-profit financial statement presentation standard:

  • Read through the standard. 
  • Attended training to understand the forthcoming changes. 
  • Had auditor/client discussions regarding the impact on audit timing and planning. 
  • Selected team members to lead implementation of the new standard. 
  • Decided whether to early-adopt. 

When you’re ready to dig in further, the chart of accounts is a smart place to go. The standard will affect several financial statement line items, so it’s important for not-for-profits to create a plan to adjust their chart of accounts during 2017 or 2018.

Continue reading "Rethink Your Nonprofit’s Chart of Accounts, Part II" »

11 Things to Know About Gen Z Workers

Gen ZJust when you thought you were beginning to understand Millennials, it’s time to prepare for Gen Z to enter the workforce and they’re very different from their predecessors. Born between 1994-2010, this generation is known by many names—Post-Millennials, iGeneration, Founders, Plurals, Homeland Generation and Gen Z. Just like the generations before them, the characteristics of Gen Z are shaped by parenting trends, historical events and technology.

Gen Z are the children of Gen X, a cohort that was thought to be skeptical and perhaps even cynical in their youth as they came of age post-Watergate and post-Vietnam. Yet, Gen X has grown up to be balanced and healthy despite facing the strains of the Great Recession of 2008. As parents, Gen X have been concerned about raising their children in a safe environment, which has led Gen Z to be more cautious than previous generations. Other major influences shaping their development and world views include the Great Recession, the War on Terror, the first African American president and the legalization of gay marriage. But, probably the most significant factor is the advent of the smartphone.

Continue reading "11 Things to Know About Gen Z Workers" »

Providing Assurance Services in an IA World

Intelligent automationPart I – Control Principles

Intelligent automation (IA) is getting the attention of finance teams, operational environment leaders, and shared service center executives across the world. Not to mention, it makes regular appearances in most major business periodicals.   

Think IBM’s Watson – IA covers all technologies from robotic process automation to artificial intelligence. It is a set of technologies that enables accountants and process owners to configure a software robot to execute, manage, control and audit process tasks. It analyzes data required to manage business and reports on business operations to an experience-based, decision-making software robot.

Continue reading "Providing Assurance Services in an IA World " »

Getting Ready for Assurance Has Its Benefits

Cyber

 

In recent months, sweeping global cyberattacks have taken thousands of businesses offline, compromising valuable data and blocking access to critical services and information assets. If it wasn’t clear before, it is now: cybersecurity is a business imperative with direct implications for overall company value. Prior to this spring, and without a common language or benchmark for cybersecurity, how do you quantify and communicate your cybersecurity risk in a meaningful way?

Enter the AICPA’s cybersecurity risk management reporting framework. Unveiled in April, the framework is intended to standardize the way organizations define their cybersecurity objectives and report against those standards in a format that works for all stakeholders.

Continue reading "Getting Ready for Assurance Has Its Benefits" »

6 Planning Ideas for Advising Entrepreneurs

Advising entrepreneursIf you work with entrepreneurs or small business owners, you likely have an appreciation of their vision, determination and work ethic.  You may also have run into some common hurdles that can derail their finances.  By focusing on the following planning considerations, CPAs and advisers serving entrepreneurs can keep their clients’ business and personal finances on track.

Choose an appropriate business form

Helping entrepreneurs evaluate key tax and nontax factors when selecting a business entity is not only important to the business’ financial success, but also the owner’s.

Should they operate as an S or C corporation, partnership, limited liability company or sole proprietorship? What are the classes of ownership, special allocations, basis, liability, elections and distributions for each structure and the impact of these factors on the owner? Navigating these complex decisions is crucial to getting their business off on the right foot. If you are an AICPA Personal Financial Planning Section member or CPA/PFS credential holder, see Chapter 18 of The Adviser’s Guide to Financial and Estate Planning for a comprehensive overview of entity selection.

Continue reading "6 Planning Ideas for Advising Entrepreneurs" »

How Relaxation Can Improve Concentration

RelaxIt’s not surprising that National Relaxation Day (Aug. 15) is observed in the thick of summer because, for many, ideal relaxation involves lounging on a tropical beach and just feeling away from it all. For me, however, snowboarding is a great way to relax. When I’m carving down a beautiful snow-covered mountain, I’m able to allow my concerns to drift off into the background. From these two examples, it’s plain to see that perceptions of what constitutes relaxation vary.

Relaxation does not inherently require us to be inactive or unplugged from our normal routine. Perhaps you make room in your weekly schedule to take a morning run, practice yoga or spend some time in your garden. These activities may be great when we can engage in them, but how can we find other ways to help us relax the rest of the time, which is most often spent at work? One way to find some space and peace, no matter where we are, is through the practice of mindfulness.

Continue reading "How Relaxation Can Improve Concentration" »

4 Things You Need to Know About Gender Equality

Women in professionFor decades, women and men have been entering the accounting profession in equal numbers. As a result, you might reasonably assume that women are now at or near parity with men at the leadership level. However, that assumption would be wrong. Only 24% of CPA firm partners are women, according to AICPA statistics. Another recent study found that only 17% of audit partners are women. If these qualified professionals aren’t reaching the top levels, firms are clearly missing out on a lot of talent.

The AICPA Women’s Initiatives Executive Committee’s (WIEC) CPA Firm Gender Survey, first distributed in 2015, is designed to identify trends in women’s leadership over time. It informs practical solutions for firms that want to make the most of their talent and prevent the loss of leadership potential. The results provide a unique spotlight on trends related to diversity in leadership and suggest solutions on how best to address them. As we launch the second iteration of the survey this year, I’m reminded of a few of the many valuable insights that the last survey revealed, along with some of the questions firms might want to ask themselves in light of those findings. The lessons learned—and the value and perspective they can offer to CPA firms—underscore the benefits of participating in the survey. Outlined below are a few key takeaways from the inaugural CPA Firm Gender Survey.

Continue reading "4 Things You Need to Know About Gender Equality" »

One Attestation Engagement that Can Save the Planet

SustainabilitySustainability assurance is a growing field for CPAs. While reporting on this topic remains voluntary, over 82% of the S&P 500 publish some type of sustainability report, up from 20% in 2011. Furthermore, 73% of portfolio managers and research analysts take sustainability matters into account when making investment decisions and 69% of them believe it is important that such information be subject to independent assurance.   

Sustainability reporting encompasses information about an organization’s environmental, social and governance performance and can range from a full sustainability report to a greenhouse gas statement to information about select sustainability topics. As companies look to increase the credibility and reliability of their reported sustainability information, they are engaging CPAs to provide assurance on this information.  

Continue reading "One Attestation Engagement that Can Save the Planet " »

Discounting Tax Services: Good or Very, Very Bad?

DiscountPeople love discounts, coupons and the perception of saving money, even when they actually aren’t. But there is another side to the discount, and that’s the product or service provider’s. When they discount their offering, they are losing money, right? Not always.

The Good

The discount is a common and time-honored marketing tactic. It can be a powerful tool. There are a few ways discounts are used to the benefit of the provider. A few of these include: loss leader, introduction/new business and reconciliation.

The loss leader is a simple concept: by heavily discounting an offering (sometimes to cost), you get clients in the door where they will hopefully purchase additional, non-discounted offerings or upgrade from the discounted offering to a superior one that is full price.

In product or service introductions, either the product or service is new, or the client is. The idea is that the discount is used to lure the client in, give them a taste of how good the offering is, and hopefully turn them into a regular customer who pays full price.

Continue reading "Discounting Tax Services: Good or Very, Very Bad?" »

FASB Addresses Accounting for Grants and Contracts

ContractsThe Financial Accounting Standards Board (FASB) recently issued an exposure draft, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made, which is intended to address questions stemming from their revenue recognition standard (ASU No. 2014-09) regarding its implications on the grants and contracts of not-for-profit organizations. Specifically, do not-for-profit grants and contracts fit the definition of a contract with a customer, such that the new revenue standard would apply? Or are they more appropriately classified as contributions, which would exclude them from the scope of ASU 2014-09 and instead require the application of contribution guidance? More on that below.

The FASB exposure draft clarifies that the first decision to consider is whether the transaction is reciprocal (an exchange) or non-reciprocal (a contribution). That is, does the donor or grantor “receive commensurate value in return for the resources provided?” If so, then the asset transfer is an exchange transaction. It is important to note that societal benefit—even if it furthers the resource provider’s charitable mission—is not commensurate reciprocal value.

Continue reading "FASB Addresses Accounting for Grants and Contracts" »

Plan Smart: Banishing Time Wasters

“I cannot make my days longer so I strive to make them better.” –Henry David Thoreau

Time wastersTime is money

We’ve heard the proverb many times. But when it comes to balancing client needs along with all of the nuances of leadership in a practice, time often really IS money. How many times have you looked at the clock and realized the day was half over before you’d had a chance to accomplish even a fraction of what you’d initially planned? A 2014 study found that only 13% of advisers report feeling in complete control of their time. Alarmingly, an overwhelming number of professionals frequently experience time drains that inhibit their relationships with clients, the growth of their business, and their own personal and professional productivity. Thankfully, there are some very easy-to-implement solutions that most CPAs can put into practice today to combat the time wasters in their daily schedule.

Continue reading "Plan Smart: Banishing Time Wasters" »

Key Facts about a New SAS on Exempt Offerings

SAS 133A municipal government issues a bond offering after the audit report date. Or a franchisor is getting ready to prepare its annual update to its franchise disclosure document. What are the auditor’s responsibilities in each case? Practitioners with governmental clients are probably familiar with long-standing guidelines to address involvement with municipal securities offerings, however a recently issued auditing standard expands those best practices into required guidance for all exempt offerings.  

What’s the Background?

The Auditing Standard Board’s Statement on Auditing Standards (SAS) No. 133, Auditor Involvement With Exempt Offering Documents, applies to exempt securities or franchise agreements when the auditor is involved. The Securities and Exchange Commission (SEC) oversees a significant regulatory framework for publicly traded offerings, setting rules on what types of information and documents must be filed and when, and on auditor involvement. Some offerings, such as municipal securities, franchise offerings, crowdfunding, and short-term commercial paper with a maturity of nine months or less, are exempt from SEC registration rules. Exhibit A in the new SAS includes a list of exempt offerings.

Continue reading "Key Facts about a New SAS on Exempt Offerings" »

3 Factors Driving Single Audit Quality [Infographic]

Single audits are a highly specialized type of compliance audit performed on states, local governments and not-for-profit organizations that expend $750,000 or more of federal assistance in a single year. Given that both the public and federal agencies rely on single audits to confirm that these organizations are managing federal funds appropriately, it’s important that firms perform high-quality single audits.

That’s why the AICPA Peer Review Program recently conducted a study to determine which factors made a difference in single audit quality. Take a look at the infographic below to learn more about the three quality factors the AICPA identified and the steps firms can take to perform high-quality single audits. 

Continue reading "3 Factors Driving Single Audit Quality [Infographic]" »

Nonprofit Challenges: Accounting for Gifts-in-Kind

VolunteersMany not-for-profits receive gifts-in-kind—noncash donations—to supplement their programming needs. When used properly, gifts-in-kind can greatly extend the cash resources of not-for-profits, as they often consist of goods and services the organization would otherwise have to purchase.

Not-for-profits that receive contributions of in-kind goods and services should report them in compliance with the Financial Accounting Standards Board’s (FASB) fair value measurement standard (ASC Topic 820).

Easy enough, right?

Not necessarily.

This blog post covers significant challenges that not-for-profits face when applying the accounting standards and related guidance for gifts-in-kind.

Continue reading "Nonprofit Challenges: Accounting for Gifts-in-Kind " »

6 Reasons to Specialize in Employee Benefit Plan Audits

Employee benefit plansSince Torrillo & Associates, LLC, (of which I am the managing member) opened in 2004, our local 15-person firm has been dedicated almost entirely to employee benefit plan (EBP) audits. We began doing these audits early in our careers, and when we were ready to go out on our own and realized what a great specialty they would be for a small firm, we became even more passionate about them. Specialization has proven to be an excellent choice for our firm because we’ve been able to distinguish ourselves in a complex area. If you’re wondering if this niche is right for you, take a look at some of the benefits we’ve enjoyed.

Our time and energy are focused. Before beginning our practice, we had worked on EBP audits at a Big Four firm, so we were aware that this was a highly specialized field. However, by working in this particular niche, we were able to invest all of our energy into becoming experts, focusing our training needs and giving us an advantage in the marketplace. We spend a lot of energy keeping up with new developments in our niche. Our firm’s quality control director and I volunteer our knowledge for AICPA and state CPA society technical projects and committees, and we send our staff to local and national EBP conferences. When taking on work, we stick to what we know and reach out to other experts when necessary, including the AICPA, the Department of Labor (DOL) or our network of ERISA and fiduciary advisors and investment advisors.

Continue reading "6 Reasons to Specialize in Employee Benefit Plan Audits" »

How to Build Your Back-to-School Budget

Back to SchoolEven though the beach is still calling, it’s almost time for students to think about the days when they’ll be loading up their backpacks, charging those computers and setting alarms for earlier than 10 a.m. – because the new school year will be here before you can say ‘fall semester.’

If that sound stressful to you, you’re not alone. On top of all the stresses associated with learning new material, meeting new people and challenging yourself intellectually, there is also a significant financial cost associated with the start of a new academic year. Regardless of whether you’re a parent thinking about your children’s back-to-school budget, a college student living away from home, or a full-time worker attending night school, the challenges are similar.

Continue reading "How to Build Your Back-to-School Budget " »

What Unlikely Pairings May Teach Us About Innovation

Innovation 2The last few years have been inundated with major acquisitions, each creating buzz from within and beyond the business world. To name a few, in June of 2016, Microsoft acquired LinkedIn (which had already acquired online learning site Lynda.com the previous year). Fast forward to last month when Walmart announced it would buy Bonobos – a mostly-online men’s upscale clothing retailer – and Amazon announced it was set to buy Whole Foods Market.

Continue reading "What Unlikely Pairings May Teach Us About Innovation" »

Scenarios in Quarterly Estimated Tax Payments

Estimated tax paymentsWhen people learn you’re a CPA, one of the first things they assume is that you “do taxes.” Often, they have a “quick tax question.” If you are a tax practitioner, you know a quick tax question is an oxymoron. It’s nice, however, to be able to translate some of our CPA lingo into easily understood information, both for clients and friends. One issue that stands out to me is: when and why does it makes sense to consider making quarterly estimated tax payments? 

Individual estimated tax payments – a primer

The government likes to get their money on a regular schedule. For most people, that means withholding from a paycheck. But if that’s not your situation, the IRS has estimated tax penalties in place that preclude you from waiting until April 15 every year to pay the balance due. In order not to be subject to those penalties, during the year you must pay at least 100 percent (or 110 percent depending on your level of income) of your previous year’s tax liability OR at least 90 percent of your current year’s tax liability. And unless there is a special circumstance where your income fluctuates during the year, those payments are expected to be paid in quarterly installments. 

Continue reading "Scenarios in Quarterly Estimated Tax Payments" »

3 Meh Ways to Promote Your Firm—and 1 Great One

CPAPoweredWe all get used to doing things a certain way. It’s easy. It’s comfortable. But over time, we lose sight of whether what we’re doing makes sense. Is it effective? Is it worthwhile? Does it take more time and energy than it returns? It’s worthwhile to take a hard look at how you market your services and ask tough questions.

Every day, CPA firms across the country rely on ideas for promoting their services that might not present the best value. Call them old habits or if-it-ain’t-broke-don’t-fix-it syndrome, but the result is the same: results that are “meh.” What more could you do to promote the very real value you bring to clients on a daily basis? Let’s start with what you might be doing now that may not be effective.

Continue reading "3 Meh Ways to Promote Your Firm—and 1 Great One" »

Is Watching Shark Week Deadlier than Actual Sharks?

SharkAs a child, I loved watching movies about summer vacations. To someone from a low-income household whose summer adventures were circumscribed to the occasional elementary school-run day camp, the idea of vacationing was exotic – regardless of whether the family went to Walley World (National Lampoon’s Summer Vacation) or to a charming Massachusetts beach town like Amity (JAWS). Even the latter, where an insatiable Great White swallows poor beachgoers whole, seemed preferable to languishing away hours reading comics in my sweltering bedroom, ignoring my mom’s relentless nagging to ‘go play outside.’

 Although many cast JAWS aside as simply a horror movie, to me, it’s always been much more. It’s a classic-if-not-quintessential man vs. beast odyssey, not much unlike those found in Greek mythology. But whether you classify the film as horror or adventure, JAWS undeniably plays to certain fears. Galeophobia (the fear of sharks) is akin to a fear of the dark in that it taps into an anxiety of being unable to see those things which may harm us. In terms of sharks, however, this fear is largely misguided.

Continue reading "Is Watching Shark Week Deadlier than Actual Sharks? " »

Rethink Your Not-for-Profit’s Chart of Accounts

Client meetingPart I

By now, most professionals who serve not-for-profit organizations in governance or financial accounting roles have gained a basic understanding of the impending changes to the not-for-profit financial reporting model. This two-part series focuses on implementation and offers actionable recommendations to help not-for-profits prepare for the impacts of the new guidance. 

Look at the New Standard through the Lens of Your Chart of Accounts

The Financial Accounting Standards Board's (FASB) Accounting Standards Update (ASU) No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, will impact several line items in the financial statements of not-for-profit organizations. To accurately and efficiently reflect those changes, it’s important that not-for-profits create a plan to adjust their chart of accounts during 2017 or 2018.

Continue reading "Rethink Your Not-for-Profit’s Chart of Accounts" »

Winning the Value War

Value propositionAre you looking to expand your practice beyond financial statements and tax returns? If so, providing more personal financial planning advice and support, which will help clients plan for their financial future, may be the key to successful expansion. But how do you express the value you’ll provide to your clients? Here are some value propositions that CPAs can use to both describe and demonstrate value of those services.

Step One: Recognize the Difficulty of Selling an Intangible Value

In the world of investment advice, defining a value proposition is relatively straightforward because the return on investment (ROI) can be easily measured. And tax savings from effective tax strategies is similarly concrete.

However, when it comes to financial planning, defining a value proposition becomes far more difficult because it involves selling an intangible service and the results are hard to measure.

Continue reading "Winning the Value War" »

Myths about Personal Financial Planning Services

MythsThere is a good chance you have visited a physician for a routine check-up. At that appointment, your doctor asked many questions – inquiring about your diet, exercise, stress, and health history – and ran diagnostic tests to assess your overall health. Your physician may not have solved any problems at that appointment, but you undoubtedly valued and were willing to pay for an objective professional to assess your health status.

Why is it, then, that many CPAs doubt the value of offering similar diagnostic and planning services to assist clients in identifying potential problems and improving their overall financial health? Broadening your services by asking the right questions, understanding your clients’ financial situation and delivering advice (or making referrals to trusted specialists) is not only valuable to your clients – but also to your practice.

Before you tune out by citing common objections, allow me the opportunity to debunk some of the common myths about personal financial planning (PFP) services.

Continue reading "Myths about Personal Financial Planning Services" »

Not-for-Profit Gifts: Thanks or No Thanks?

Shutterstock_304427672Not-for-profit organizations are always thankful for the generosity of their donors. Sometimes, however, they must consider whether a proposed gift should be accepted. A gift of $100,000 in cash is easy to immediately direct toward the not-for-profit’s mission. On the other hand, a donation of real estate worth $100,000 may come with additional expenses and effort to sell the property before the proceeds are available to support the organization’s mission. Having a formal gift acceptance policy can help define when an organization should, or should not, accept a proposed gift.

Continue reading "Not-for-Profit Gifts: Thanks or No Thanks?" »

3 Reasons to Embrace Cloud-Based Technology

CloudNew technologies offer ambitious professionals the chance to advance their careers, and their firms, to new heights. They can be especially beneficial to women and, indeed, any CPAs who want to set themselves apart professionally and preserve a healthy balance between their work and personal lives. In my own experience, I’ve used my cloud technology knowledge to expand my opportunities, accelerate my progress, boost my worth to clients and reinforce my relationships with them. How does the cloud enhance opportunities for CPAs?  

  1. It can expand practice development options.

Cloud-based technology makes it possible to store and access data online where it can be accessed by authorized users from any computer. It’s the tool behind client portals that allows clients and firms to update and collaborate on data they share access to. You can use it to distinguish yourself and your firm.  

Continue reading "3 Reasons to Embrace Cloud-Based Technology" »

Qualified Charitable Distributions Reduce Tax Bills

RMDCPAs are the frontline in mitigating the impacts of Required Minimum Distributions (RMDs)

CPAs have the opportunity to be proactive in helping their clients take advantage of the tax break for charitable IRA rollovers, technically known as QCDs (qualified charitable distributions). After my IRA update session at the AICPA ENGAGE conference, this topic generated the most questions of everything I discussed. It’s an easy provision to follow, and it’s even easier to know exactly which clients qualify.

The topic of QCDs is an important one for CPAs, because it’s an opportunity to provide real value to clients who are unaware of the provision. One of the most heavily emphasized messages from the ENGAGE conference was how to offer competitive services in the future. The answer always came down to relationships based on knowledge resulting in higher value services. QCDs fit perfectly into this.

Continue reading "Qualified Charitable Distributions Reduce Tax Bills" »

Small Firms Make a Difference in Unexpected Ways

Small firmI recently heard a moving story about an acquaintance’s father who passed away unexpectedly. Married to his childhood sweetheart for more than 60 years, he was a dedicated father and husband. He had been the manager of his family’s accounts. Upon his death, his widow and family had to set aside their grief to grapple with urgent financial issues, including funeral expenses and insurance matters. Fortunately, a trusted advisor was able to help. The family’s CPA, a small firm practitioner who had known the family for years, was well acquainted with their finances, and immediately came to their aid, offering his technical expertise. The CPA restored order to the family’s accounts and eased their worries. They had peace of mind knowing their CPA was prepared to protect their interests during and after a highly emotional and stressful time.      

Stories like this one unfold every day in CPA firms across America. Whether they’re advising startups on growth opportunities or helping individuals handle life changes, small firm CPAs have a profound impact on their clients, supporting them as they strive for their goals, build for the future or deal with crises as they arise.

Continue reading "Small Firms Make a Difference in Unexpected Ways" »

Helping College Graduates Reach Financial Independence

Financial independence“The secret of getting ahead is getting started.” –Mark Twain

Ironically, the knowledge college students gain while studying for their careers is only one aspect of the education they’ll need to succeed in securing a healthy financial future for themselves. Learning how best to manage their finances and make wise decisions requires both individual effort and solid expert advice. That is where CPAs can serve as educators to help their clients – the parents – share tools with their recent college graduates to help them achieve financial success.

Getting started can seem overwhelming, but having an accurate idea of how much it costs a recent graduate to live monthly or annually is an essential first step. Suggesting clients’ children use simple money-tracking apps such as the one available at mint.com, where individuals can examine every aspect of their financial life in one place, can be helpful. After entering some basic information about their income and expenses, users can get a quick overview of their overall financial health.

Continue reading "Helping College Graduates Reach Financial Independence" »

8 Tips to Determine Your Not-for-Profit’s Year-End

Year-end planningNot-for-profits have a luxury that most other individuals and businesses do not. They’re allowed to select their fiscal year-ends for IRS purposes. Partnerships, sole proprietorships, S corporations and other legal structures, with limited exceptions, may not. These groups generally are required to use calendar year-ends for tax filings. Read on to find out what a not-for-profit should consider when choosing a year-end date.

How does a not-for-profit choose its year-end?

By default, many not-for-profits are organized with a calendar year-end, but not-for-profits should assess if this is the best choice. A thoughtfully chosen year-end may produce more meaningful financial statements, ease reporting requirements and even save the organization money. Before deciding on a year-end, organizations should consider the following factors:

Continue reading "8 Tips to Determine Your Not-for-Profit’s Year-End " »

Where Will You be Financially in 40 Years?

Fin Lit gameWhat sounds more appealing to you – reading a bunch of boring facts online or playing a game to learn the same exact thing? You’d probably choose the latter. In fact, research shows a majority of millennials see clear benefits from playing digital games. Two in three (67 percent) say that games are important in helping them to learn how to create winning strategies and 7 out of 10 (70 percent) feel it aids them in learning how to solve problems. The proof is in the pudding, as they say – and that’s where gamification and personal finances come into play (literally!).

Today, the AICPA and the Ad Council launched a free digital game, Yesterday’s Tomorrow.’ The game is a new resource from Feed the Pig to help millennials build savings skills, a product of the idea Scott Garner submitted for the Feed the Pig Game Design Challenge. The challenge invited people to submit ideas for digital games to help educate Feed the Pig’s target audience. More than 70 ideas were submitted, and his concept was chosen to help educate millennials through gamification.

Continue reading "Where Will You be Financially in 40 Years?" »

Effect of Spending Habits on Retirement Planning

RetireesThe traditional approach to retirement assumes that retirees will maintain their pre-retirement standard of living as they transition into retirement, and then sustain that lifestyle throughout retirement. But a growing base of research that analyzes the actual spending habits of retirees, reveals a different story.

In reality, retirees tend to experience a slow but steady decline in real spending throughout retirement. Spending decreases slowly in the early years of retirement, more rapidly in the middle years, and then slows again in the final years, in a path that looks like a “retirement spending smile.” Even the uptick of health care expenses in a retiree’s later years are generally not enough to offset all the other spending decreases that typically occur in retirement. That’s important, because it means your clients may not need as much money in retirement as they think.

Continue reading "Effect of Spending Habits on Retirement Planning" »

100 Years of CPA Exam as Licensure Requirement

Adding machineA lot has changed over the last 100 years with the evolution of the CPA profession. Old fashioned calculators gave rise to Microsoft Excel. Stacks of financial statements have morphed into data in the Cloud. And many CPAs have expanded beyond auditing or tax services through the growth of specializations such as IT assurance, financial planning and business valuation.

Despite all the change, one notable constant has remained – the Uniform CPA Examination’s alignment with professional practice and the work of newly licensed CPAs. This alignment has continuously ensured that those earning licensure have demonstrated the requisite knowledge and skills vital to protecting the public interest.

Continue reading "100 Years of CPA Exam as Licensure Requirement " »

Summer Jobs: More Than Money in Your Pocket

Scooping ice cream

School’s out and many high schoolers and college students are taking summer jobs. Seasonal work can provide extra spending money for many teens or much needed funds for school expenses. But summer jobs aren’t just about earning a paycheck and learning how to manage the money you’ve made. These jobs provide valuable work experience and help youth develop professional skills and discover their talents. It’s an opportunity to take responsibility, learn time management skills and figure out how to get along with co-workers. Summer jobs also provide future employment references, mentorship and can even help teens succeed in school, according to Stanford researcher Jacob Leos Urbel.

Continue reading "Summer Jobs: More Than Money in Your Pocket" »

New Liquidity Disclosures for Not-for Profits: Are You Ready?

NFP Liquidity DisclosuresUnder current financial reporting standards, not-for-profits are not required to illuminate clearly restrictions that affect the availability of liquid resources in their financial statements. But this is all about to change with the Financial Accounting Standards Board’s (FASB) new financial reporting standard (Accounting Standards Update (ASU) 2016-14), effective for fiscal years beginning after December 15, 2017.

In this update, FASB clarifies that the nature of an asset isn’t the only quality that affects its availability. Specifically, liquid resources are quickly converted to cash and available to fund general expenditures within one year following the balance sheet date. Internal (board-designated) and external (donor-imposed) restrictions could mean certain sums of cash and cash equivalents may not be used for general expenditures. If a board designates an amount of cash to be set aside for a building renovation, for example, it cannot be used to buy office supplies.

Continue reading "New Liquidity Disclosures for Not-for Profits: Are You Ready?" »

How Robots Can Help You Thrive

RobotTechnology is creating opportunities for the accounting profession, but the human factor is still key– that was the message at IdeaAcct, a session at the AICPA Engage Conference highlighting thought leadership and innovation in the profession.

Practical & Immediate Opportunities for CPAs in Artificial Intelligence - Dan Giffiths, CPA, CGMA

Because accounting is highly structured, it lends itself nicely to machine learning. Therefore, many people think that accounting and tax services are likely to be automated. Software already exists that can populate tax-ready financial documents just from an individual’s bank login information, and such services are available for as little as $100 a month. However, clients are willing to pay far more for advisory services drawn from that information. The value, Griffiths says, lies in the relationships and the advice that CPAs can provide. To take advantage of the opportunities, CPAs need to become friends with their tech colleagues. Good friends.

Continue reading "How Robots Can Help You Thrive" »

How to Prepare for Your Organization’s Single Audit

AuditIt’s time for your single audit: Is your organization prepared? If you are a recipient of federal funds, to maintain your organization’s funding you must comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, known as the Uniform Guidance. Your single audit provides the federal government with assurance of your compliance, and being well prepared for the audit can help the process be more efficient. In this blog post, several CPAs who are either with organizations subject to single audits or who perform these audits themselves reveal valuable best practices that can minimize your worries and set you on the road to success.

Continue reading "How to Prepare for Your Organization’s Single Audit" »

3 Trust Ideas for Reducing Estate Taxes

Bob Keebler spoke at the AICPA ENGAGE conference on “The Best Estate Planning Ideas Today.” Included in his detailed presentation were numerous points of interest beyond trusts. The following is a small selection from his 50-minute talk.

Because of the high limit on unified credit, many clients believe that estate planning isn’t for them. The truth, however, is much more complicated. Depending on the client’s state of residence, their positions in real estate or partnerships that might survive them and many other considerations, estate loss can be considerable. Your clients shouldn’t have to pay more than necessary in taxes on their estate, and as their trusted adviser, it’s your job to guarantee that the family’s wishes for their wealth are honored to the fullest extent possible.

Continue reading "3 Trust Ideas for Reducing Estate Taxes" »

3 Solutions to Firms’ Top Challenges

Find the right peopleYour practice is thriving, but there are some issues that continue to present challenges. Are other firms like yours facing these issues, too? And what trends are other CPAs seeing that you ought to know about?

Practitioners can find the answers to these questions and more in the results from the 2017 Private Companies Practice Section (PCPS) CPA Firm Top Issues Survey . This unique survey, which is conducted every two years, identifies the significant concerns for firms of various sizes and spotlights emerging challenges in practice management. Barry Melancon, President and CEO of the Association of International Certified Professional Accountants, provided an overview of the survey results yesterday during his Professional Issues Update at the AICPA ENGAGE Conference.

Continue reading "3 Solutions to Firms’ Top Challenges" »

Kevin O’Leary Says CPAs Can’t Be Replaced. Take That, Mark Cuban.

Kevin O'LearyKevin O’Leary, businessman and co-host of the TV show Shark Tank, says the CPA’s role as a trusted adviser in the marketplace cannot be replaced by technology. That stands in stark contrast to the comments his co-host Mark Cuban made earlier this year.

Score one for Mr. Wonderful.

O’Leary, a keynote speaker at the AICPA ENGAGE Conference on June 13, joined me for a Facebook Live session and spoke with me off camera about how technology is impacting the accounting profession. His comments were on point.

“Half of the work the CPA does is to deal with people, to have relationships with people, and to decide how to work with their desires, their direction, and their vision for their business. That is never going to be replaced by a machine,” O’Leary said.

Technology is evolving faster than ever before, but so too are the needs of businesses. For example, while big data means greater accessibility to information, it also creates a need for the analysis and interpretation of that information. While advances in robotics may change some business operations, companies still need advice on how to run those businesses.

“The truth is that we are going to need CPAs more than ever. Their role is to try to figure out and mitigate risk at every stage, and to say, ‘If we do it this way, here is the tax implication. If we do it this way, this is the cost implication.’ The profession is going to continue to flourish,” O’Leary said.

Continue reading "Kevin O’Leary Says CPAs Can’t Be Replaced. Take That, Mark Cuban." »

4 Steps to Fortifying Your Cybersecurity

Cybersecurity 4Small businesses are “unprepared or poorly prepared for a cyberattack” according to 75% of the 307 insurance and risk management advisors surveyed through the Advisen and Experian 2017 Cyber Risk Preparedness and Response Survey. Unfortunately, no organization is immune to cyberthreats. These days, most companies should have some basic form of cybersecurity program in place. If yours doesn’t, or if you need a refresher, here are four steps you can take to establish a stronger foundation.

Step 1: Create a Comprehensive Set of Cybersecurity Policies

What resources does your organization have that are at risk? Think beyond the obvious. On-site computer systems, laptops, tablets and mobile phones are immediate suspects, but bring your own devices (BYOD) and wearable technology such as smartwatches can also be compromised. Determine what controls you need in place to ensure information is kept secure. Set your rules for communicating, working with, copying and distributing sensitive data; and document those rules and make sure everyone in the organization receives a copy. Necessary policies typically include an IT policy, information security program (including a risk assessment), employee acceptable usage policy, business continuity and disaster recovery plan, and an incident response plan. 

Continue reading "4 Steps to Fortifying Your Cybersecurity" »

The One Vulnerability Cyber Thieves Are Desperate to Exploit

PasswordCybersecurity attacks are becoming more pervasive and seemingly effortless to pull off.  Cybercriminals who can execute a successful attack are seizing credit card numbers, bank account information and even Social Security numbers. A 2016 study conducted by the Ponemon Institute found that the average cost of a data breach is $4 million. You can strengthen your organization’s cybersecurity risk management plan by addressing this one vulnerability: weak passwords.

The capture or reuse of passwords, or “static credentials” as they are often referred to in the IT industry, is standard practice for organized crime groups and state-affiliated attackers alike, according to the Verizon 2016 Data Breach Investigations Report, whose list of contributors represents a “who’s who” of cybersecurity expertise worldwide, from both the private and public sectors. Likewise, passwords are used against all kinds of targets, from the largest organizations to individuals.

A common misperception is that cyber attackers have become so sophisticated that something as simple as a password is no longer effective. The tendency is to think that if federal agencies and multi-national corporations can be breached, there’s nothing individuals can do to protect themselves. This could not be further from the truth. Individuals have the most power in preventing attacks that exploit passwords, which is why a policy on passwords should be a key component of your firm or organization’s cybersecurity risk management program.

Continue reading "The One Vulnerability Cyber Thieves Are Desperate to Exploit" »

Not-for-Profit Contributions: Counting v. Accounting

Counting moneyWhen is a contribution to a not-for-profit really a contribution? Many would say it depends on whether you ask someone in the accounting or development department. While the accounting office recognizes contributions in accordance with generally accepted accounting principles (GAAP), there are no required standards for counting and reporting fundraising receipts by the development office. The resulting differences create perhaps the greatest source of tension between the two teams. So what can be done to bridge the gap and foster a cooperative relationship that will best benefit the not-for-profit?

First, accept that what gets reported by each group will be different. And that’s okay, as long as the differences can be explained. There’s no need to hash out who’s right or wrong; just take time to understand each other’s math. What gets included, by whom, and when? Accountants need to explain GAAP in “non-accountant” language. Similarly, the development team needs to establish and share its consistent guidelines for reporting fundraising activity. Developing this understanding will take time and patience on both sides but is essential to forming a good working relationship.

Continue reading "Not-for-Profit Contributions: Counting v. Accounting" »

Social Media: The Conference Success Secret Weapon

Conference social mediaConferences give you the opportunity to network and become energized about the accounting profession and the direction in which it’s heading. Most people know the standard networking methods – attend receptions and collect business cards. But how can you make the most of the experience before, during and after the event?

Social media is present at almost every conference, giving you the opportunity to develop high-quality connections while staying in the loop on all the happenings.

Here are five ways you can utilize social media to make the most of your time and money:

Join the conversation.

As social media becomes omnipresent, if you don’t look to these platforms, you’ll miss out on the opportunity to join conversations about conferences and events. Follow the event hashtag on Twitter and Instagram or see if the organization hosting the event has LinkedIn groups you can join. By using these interactive forums, you can see who else is attending an event, set up conference meetups, and even reach out to influencers who may be on site.

Continue reading "Social Media: The Conference Success Secret Weapon" »

Subscribe

Subscribe in a reader

Enter your Email:
Preview