In the News: Students from UNLV Earn First Place in AICPA Accounting Competition

UNLV9_t653The American Institute of CPAs recently announced that students from the University of Nevada, Las Vegas have earned first place in the 2014 AICPA Accounting Competition.

AccountingWeb reports that the UNLV team’s top finish in the competition earned a $5,000 award for their school. Students from North Carolina State University placed second, taking home $3,000 for their university. The third-place team from the University of Southern Indiana earned $2,000 for their school.

In addition, each of the three finalist teams received a $10,000 award to be split among the team members. All of the awards are funded by the AICPA Foundation.

Continue reading "In the News: Students from UNLV Earn First Place in AICPA Accounting Competition" »

Give Thanks, and Give Back

Hands raisedNo matter how many times you may have reminded yourself, it’s a fair guess that you most likely did not completely eliminate the urge to splurge during the recent holiday season. Even though your family may have said no gifts are necessary, it can be hard to swallow the idea of showing up empty handed—my immediate family says year after year that “our presence is our present,” and yet we all show up with armloads of gifts, every year. The last thing we want is to cause our loved ones financial distress at our expense, so how do we fight the urge to splurge in the year ahead?

Continue reading "Give Thanks, and Give Back" »

5 Key Social Media Trends for CPAs in 2015

Social mediaThis year’s social media trends forecasts are buzzing over innovations such as the integration of ecommerce with Facebook and Twitter, wearable technology and sophisticated analytics that report return on investment. While it will be interesting to see the development in these areas, there are additional trends that can significantly impact your firm’s success on social media. Here are five trends to consider as you go about implementing your firm’s social media strategy for 2015.

Continue reading "5 Key Social Media Trends for CPAs in 2015" »

Accountants Play Critical Role in Establishing Global Transparency

Transparent globeI’ve always thought the world would be a better place if only there were more professional accountants working throughout organizations. Each and every day, we bring transparency and accountability to businesses and governments around the globe. We promote financial integrity, expose wrongdoing, and lift the veil of uncertainty to shine light on the truth. When you think about it, we are much like the Swiss-Army knife for modern business—equipped to bring solutions in countless ways.

Tax work? We do that. Financial statements? We do those too. Interpreting human capital and supply chain implications of the latest regulatory standards? Your CPA has you covered.

If CPAs are like the Swiss-Army knife, then transparency is the Master Key that unlocks good business practices; transparency holds decision-makers accountable, leads to better management decisions, and provides the reliable, actionable information on which investors and the free market rely.

Continue reading "Accountants Play Critical Role in Establishing Global Transparency" »

4 Tips for Turning Tax Season Lemons into Lemonade

Tax- lemonsRaise your hand if every article on the upcoming tax season has left you reconsidering your choice of profession? The messages are everywhere and are not painting a rosy picture of what tax practitioners can expect. Well, I promise not to drudge up ACA, repair regulations, foreign accounts or countless other changes - enough has been said on those. Instead, I have a few ideas that you can try the next time you spot a tax season lemon.

Whether your firm is big or small, gone completely high-tech or still doing everything manually, there are always opportunities for improving efficiency, exploring new service lines, reinforcing your value to clients and raising your fees. This lemonade recipe has four ingredients, and simply requires a notebook, a plan and a commitment to try something new.

Continue reading "4 Tips for Turning Tax Season Lemons into Lemonade" »

CPA Exam Q1/Q2 2015 Score Release Timetables

The Q1/Q2 2015 score release timetable is now available. Score release timelines are updated biannually on AICPA Insights and on the CPA Exam website. For more information about score release and the scoring process, please visit the Psychometrics and Scoring page.

The National Association of State Boards of Accountancy releases the scores to candidates and state boards of accountancy based upon the target score release dates listed in the tables below.

Continue reading "CPA Exam Q1/Q2 2015 Score Release Timetables" »

What Could a Next-Generation Peer Review Program Look Like?

The computer scientist and tech pioneer Alan Kay once said: “The best way to predict the future is to invent it.” That’s been the mantra in Silicon Valley for 40 years. Inventing the future is the opportunity the CPA profession has today with the release of the concept paper Evolving the CPA Profession’s Peer Review Program for the Future: A provocative vision of what practice monitoring could become.

Two years ago, based on input from the AICPA’s governing Council, a task force sanctioned by the Board of Directors began exploring ways to raise the Peer Review Program’s current practice monitoring efforts to even higher levels of relevance, strength and effectiveness.

Developed with research and input from various stakeholders, the concept paper offers a glimpse into practice monitoring with a futuristic view. The paper asks us all to imagine the possibilities of what practice monitoring might look like in the next 5 to 10 years and beyond.

This video provides a quick overview.




Continue reading "What Could a Next-Generation Peer Review Program Look Like?" »

Happy Holidays from AICPA Insights


We wish you a joyous holiday season and a Happy New Year. In celebration of the holidays, AICPA Insights has completed its blog postings for 2014 and will resume the first week of January. We look forward to providing our readers with more informative and thought-provoking blog posts in 2015. 

Winter scene image via Shutterstock

5 Tips for Building Your Financial Planning Practice

PFP blogCPA financial planners are always looking for ways to help clients and their extended families realize their dreams and provide for future generations.

There are plenty of financial advisors in the marketplace, but not nearly as many as there are CPAs who work with individual clients and understand their needs from a tax and accounting perspective. That’s the edge we have that makes a difference. CPAs are well positioned to offer holistic financial planning services – ranging from traditional tax and estate planning to retirement, investment and risk management planning.

Last month, as part of the AICPA’s PFP Section’s CPA Financial Planning Thought Leadership series, I moderated the webcast, “Outlook for the Financial Planning Profession.” Panelists shared their perspectives on trends that affect their clients and the CPA financial planning profession, as well as how they integrate financial planning into their firms. While there are many different approaches that can be successful in this area, the key is to focus on your clients and what you do best for them.

Continue reading "5 Tips for Building Your Financial Planning Practice" »

Igniting a Passion for Learning

Last time, as part of a discussion on AICPA’s Future of Learning initiative, I focused on the Future of Learning Task Force recommendation to innovate and experiment, including ideas on selecting the right delivery method for a topic, ways to integrate technology into learning and, perhaps most importantly, ideas for small changes to delivery that can have a huge impact.

Creating a Spark

Today, let’s focus on the recommendation to “ignite a passion for learning.”

In a professional environment where complying with CPE hours often places more value on how much time you spend in a classroom than the quality of what you learn—it is not uncommon for a CPA’s desire to learn to be extinguished and replaced by a resignation to comply.

The importance of motivating CPAs to build competency in meaningful ways cannot be undervalued. And, as we noted in the report, nothing motivates and engages learners like meaningful, purposeful experiences. Whether you create regulation, develop employees or deliver learning, challenge yourself to answer the following, Education for what purpose? If you keep this in mind you will help professionals make the most out of each learning experience.

Continue reading "Igniting a Passion for Learning" »

Strengthening the Profession’s Core with Relevance, Rigor and Reach

Tommye_barie_headshot2I am excited to write to you as the new chair of the AICPA Board of Directors. I hope to meet many of you at the numerous conferences, state society meetings and firm visits that I have lined up between now and next October. The Chair’s Letter also is a great forum to discuss common experiences and important developments. Throughout the year, I will share my thoughts on key trends and emerging professional issues. I hope you’ll share your comments with me and our fellow CPAs so we can have a robust dialogue.

Let me begin by telling you a little about myself. I grew up in the tiny town of West Liberty, Kentucky, home to about 2,000 people and two stoplights. I was raised on small-town values that remain with me today. These values – hard work, integrity, community and commitment – first attracted me to the accounting profession, and now they will shape my stewardship as AICPA Chair.

Continue reading "Strengthening the Profession’s Core with Relevance, Rigor and Reach" »

Dynamic Firm Benchmarking: the New MAP Survey Platform in Action

MAP surveyHave you ever performed an in-depth comparison of your firm’s standing against other firms of the same size? The 2014 PCPS/TSCPA National Management of an Accounting Practice Survey provides some new and valuable ways to assess where your firm stands and plot your future course. If you participated in the survey this year but haven’t really delved into the results, which became available in November, you definitely want to check them out. Thanks to a new online platform, it’s much easier to take a peek at how firms like yours operate. And even if you didn’t participate, the survey offers some valuable information that will help your firm plan.

Take the case of a single owner firm like mine. We have a boutique corporate tax practice. In addition to myself, our permanent staff includes one CPA and one CPA candidate, but we add an administrative person and per diem help in busy season. When I’m planning for the future, I often wonder what a top performance single-owner firm looks like, but it’s tough to find more than anecdotal information.

Continue reading "Dynamic Firm Benchmarking: the New MAP Survey Platform in Action" »

Benchmarking the Finance Function

Global management accounting principlesOn October 22, CIMA and AICPA released Global Management Accounting Principles, which are available for download at 

When explaining the principles, the first thing I usually mention is that they are not a prescriptive set of rules. They are principles-based, comprehensive, best-practice guidance designed to help organizations (and specifically finance leaders, CEOs and boards) benchmark and improve their management accounting functions. 

The Global Management Accounting Principles encompass four core principles focused on four outcomes:

  • Influence - Communication provides insight that is influential
  • Relevance - Information is relevant
  • Value - Impact on value is analyzed
  • Trust - Stewardship builds trust

The principles outline the fundamental values and qualities that represent management accounting. Application of the principles, combined with talented people and robust performance systems, will help drive effective management accounting functions.

The document is most impactful in section five, where the core principles are applied to 14 management accounting practice areas. Here, extensive good practice guidance is provided in key areas such as treasury management, financial strategy, cost transformation, budgetary control, investment appraisal and risk management. The guidance can be used to self-assess existing processes.  A diagnostic checklist is available to facilitate the review.

A complimentary resource to the management accounting principles is the CGMA Competency Framework, which is designed to help management accountants understand knowledge requirements and assess skills needed for current and desired roles. In addition to technical areas, the Competency Framework addresses business, people and leadership skills.

The Global Management Accounting Principles are focused on the organization. The Competency Framework is directed at the individual. Combined, they are powerful tools that we hope you and your team find useful.

Paul Parks, CPA, CGMA, Associate Director- Business Industry and Government, American Institute of CPAs  

AICPA Introduces New Disruptive Technology

Audit data analyticsWith the issuance of the AICPA’s Audit Data Standards, the Institute has introduced what promises to be a significant disruptive technology – data on demand. ADS were designed to bridge the gap between disparate Enterprise Resource Planning systems and apps (tools and technologies) that analyze a company’s data. Until now business information consumers had to rely on IT personnel to either develop customized extraction routines or develop applications within the ERP system to do what users were asking for. But, as many business information consumers know, that process is often expensive and time-consuming. All that is about to change.

Continue reading "AICPA Introduces New Disruptive Technology" »

AICPA President and CEO Looks Ahead to 2015

In an interview with CPA Letter Daily, AICPA President and CEO Barry Melancon, CPA, CGMA, reflects on the accounting profession’s successes in 2014 and discusses the opportunities and challenges of 2015. Below is an excerpt from the interview; for the full interview, watch the accompanying video.




Continue reading "AICPA President and CEO Looks Ahead to 2015" »

In the News: CPAs More Bullish on Economy Heading into 2015

2015Yesterday, the AICPA announced the results of the fourth quarter AICPA Economic Outlook Survey. The survey, which polls CEOs, CFOs, controllers and other CPAs who hold senior management accounting roles, found higher expectations for profits, revenue and expansion in the coming year.

Some 64 percent of survey takers now report that they are optimistic about prospects for the U.S. economy over the next 12 months. That is up from 52 percent last quarter and 38 percent a year ago.

As Politico reports, the survey found that respondents are actually slightly more optimistic about their own companies’ prospects (67 percent, up 2 percentage points from last quarter), with 71 percent saying they expect their business to expand in the coming year.

Continue reading "In the News: CPAs More Bullish on Economy Heading into 2015" »

Did You Receive an AICPA Survey on the Next CPA Exam?

CPA Exam SurveyThe business environment has changed profoundly over the past few years. New regulations, developments in technology and global expansion have altered the way we work with one another. The AICPA closely monitors each of these factors and considers how they impact the future of the accounting profession.

Given this constantly evolving landscape, we need to take a closer look at how changes in the environment affect those who plan to enter the profession – the newly licensed CPAs. Experience and education requirements for licensure vary by state, but passing the Uniform CPA Examination is a must for everyone.

Have you received a survey asking for your feedback on what content should be tested on the CPA Exam? (Remember to check your spam folder!) If so, your input – which directly reflects your experience in practice – is instrumental in helping us understand exactly what topics the Exam should include.

Continue reading "Did You Receive an AICPA Survey on the Next CPA Exam?" »

3 Pitfalls to Avoid on the Road to Becoming the Firm of the Future

Becoming the firm of the futureCPA firms are at an important turning point. We have a choice: we can stick to the practices and procedures we know—ones that have admittedly helped us build the success we enjoy today—or we can take the kinds of bold steps that will ensure our future relevance and prosperity. This will be an understandably tough decision. To prosper over the long-term, though, firms must address the radical changes taking place in the domestic and international marketplace, including increasing market and technical complexity facing CPAs and their clients, as well as the expectations of a new generation of professionals. The profound transformation in so many areas requires a similar alteration in the way we manage our practices. If our firms don’t identify the obstacles preventing us from affecting meaningful change, we risk being left behind. In particular, there are three pitfalls that will make it challenging even to get started on the road to transformation.

Continue reading "3 Pitfalls to Avoid on the Road to Becoming the Firm of the Future" »

Going out on a Limb for Tax Extenders

Tax blogAre we there yet?  Are we there yet?  Are we there yet? Are we there yet?

~ One of my grandsons

What’s the million dollar topic on members’ minds these days? It’s always a multiple choice with me so here you go:

1. The IRS

2. The congressional lame duck session

3. Extenders

4. Starting busy season

5. Government appropriations

6. Affordable Care Act compliance

 7. The Keystone Pipeline

8. Immigration reform

9. Bipartisan cooperation in Washington

10. All of the above

(Ed, why is “starting busy season” on your list?  When you were in practice, did you look forward to starting busy season?  And isn’t bipartisan cooperation in Washington an oxymoron?  What were you thinking?)

OK, fair enough, maybe not starting busy season, but busy season is a key to a successful practice year, and getting through it with fewer gray hairs wouldn’t hurt. (By the way, take a peek at our recent Tax Power Hour (for Tax Section members) for some tips.) 

I wish it were bipartisan cooperation, but the obvious answer is “extenders.”  We’re hearing from lots of members and rightfully so. Over 50 provisions expired last December.  Our tax advocacy team has been talking about those provisions on Capitol Hill for over a year.  And we recently sent in a letter about them.  IRS Commissioner Koskinen even asked for a copy of the letter to tout with members of Congress because of the IRS’ interest in getting off to a smooth and early start to filing season. Truth is, energy and immigration policy aren’t my thing but they really are intersecting with tax policy on Capitol Hill this year.  So what's the scoop?

The talk about quick passage of extenders is being replaced by congressional interest in smoothing the way for the Keystone Pipeline; indeed, legislation has passed in the House and Senate that the President has indicated would be vetoed (and they do not have enough votes to override the veto). And the President has acted on immigration issues through executive order; the Republicans have said such unilateral action could result in legal action to stop it.  And if that weren’t enough, there’s other legislation, such as the Terrorism Risk Insurance Act, that requires congressional attention; and even talk about letting the continuing resolution, the temporary government funding mechanism, expire on Dec. 11. It may not be a likely result but even a remote possibility of a government shutdown leading up to tax busy season is not good!

There has also been quite a bit of talk on dealing with extenders, which is good news.  Piecemeal or blanket extension?  One year or two? The House has been interested in the permanent extension of some provisions and a temporary extension of the remaining provisions, and the Senate leans “blanket.”  And lots of groups are posturing for something to happen - one broad coalition of business groups has urged Congress to act right away lest uncertainty and instability be injected into the marketplace.  Even outgoing Ways and Means Chairman Dave Camp has said he thought the Democrats were acting in good faith.

But some would like to see provisions wither away on the vine, for example, retroactive extension of the decades old wind production tax credit has garnered a long and vocal list of opponents. And the President recently warned he would veto a congressional deal in the works, contending that it benefits corporations more than families.

However, there is still hope and I’m a glass-half-full type of guy so let me go out on a limb and give you my predictions (OK, maybe they’re wishes):

  • Congress will enact a two-year extension of the 2013 extenders - one year retroactively - during the lame duck session.
  • Congress will also pass another continuing resolution to fund government though busy season.
  • IRS will expeditiously finish the forms and complete programming and get things off to a smooth start.
  • The President and Congress will quietly work towards a bipartisan solution to immigration, energy issues and other items that need attention.

And a giant duck will land on the end of the limb I just went out on . . . is that a crack, I hear? (Ed, that wasn't just your grandson asking if “we're there yet;” it was all 400,000 of the AICPA’s members.)

Edward S. Karl, CPA, Vice President of Taxation, American Institute of CPAs

Going out on a limb image via Shutterstock

Happy Thanksgiving from AICPA Insights

LeavesWe are grateful to you, our readers. Your thought-provoking comments continue to spark interesting discussions and a lively sharing of opinions. Thank you for your readership.

We look forward to the next conversation – after the turkey and stuffing, of course! Enjoy this time with your family and friends, and have a safe and happy Thanksgiving holiday. 



7 Tips for Starting Your Own Practice

Starting LineEntrepreneurism is on the rise. With start-up fever igniting the Bay Area to the Chesapeake Bay what CPA hasn’t considered—even for a moment—starting his or her own firm? We each started our own firms and know firsthand about the advantages and challenges of venturing out on our own. A few months ago we participated in a live Facebook chat on how to start your own practice. Many of you joined us and asked great questions such as: What prompted you to start your practice? What is the best way to get your name out there? What were some of the unexpected challenges you encountered?

What’s our advice? Here are seven tips for starting your own firm:

Continue reading "7 Tips for Starting Your Own Practice" »

World Congress of Accountants 2014: Grande Successo!

ColosseumI’ve just returned from the World Congress of Accountants 2014 in Rome where the CGMA designation, powered by the AICPA and CIMA, served as the imperial and event app sponsor. I can tell you unequivocally, in English as well as Italian, that it was a great success!

WCOA is organized by the International Federation of Accountants and is held every four years. As lead sponsor, the event provided us the ultimate opportunity to showcase the CGMA designation, the US CPA credential, and the AICPA to an audience of nearly 4,000 professional accountants from around the globe.

At WCOA, we launched a series of reports and briefs that explore the latest trends shaping the future of business. Here’s a synopsis of those reports:

Continue reading "World Congress of Accountants 2014: Grande Successo!" »

Get Ready for the Medicare Open Enrollment Deadline

Elderly couple receiving financial adviceCPA financial planners and others who advise clients on healthcare and estate planning issues will want to know that the Medicare annual open enrollment period runs Oct. 15 through Dec. 7, 2014.

Many people understand they can switch from their 2014 standalone Part D prescription drug plan to a new standalone plan for 2015. Medicare beneficiaries can also drop their Part D coverage altogether, although this is not a good move unless you are moving from traditional Medicare to a Medicare Advantage plan with a prescription drug feature.

Medicare beneficiaries can also do the following:

1. Change from traditional Medicare to a Medicare Advantage plan.

2. Go from a Medicare Advantage plan to traditional Medicare, although the choices may be limited when it comes to finding a Medicare Supplement plan.

3. Transfer from their current Medicare Advantage plan to a new Medicare Advantage plan for 2015.

4. Move from a Medicare Advantage plan without prescription drug coverage to a plan that offers prescription drug coverage. Note that the Medicare beneficiary can also move from a Medicare Advantage plan that offers prescription drug coverage to one that does not.

Continue reading "Get Ready for the Medicare Open Enrollment Deadline" »

Employers’ Denial of ACA Impact Could Cost Them a Fortune

ACA-Image 600x600In all of my dealings with employers on Affordable Care Act (ACA) matters since 2010, I’ve reached a few reasonably sound conclusions.  Here’s one: employers are faking it!  They are doing so when it comes to how IRS controlled group rules influence the ACA’s “Applicable Large Employer” (ALE) determination.  It is this determination that serves as a foundational component of the ACA’s Employer Shared Responsibility (“pay or play”) mandate.  To recap, employers of 50 or more full-time equivalent employees (100 or more for 2015) are expected to offer ACA compliant coverage (play) or pay assessable payments.  The amounts of these payments are based on factors that include the number of full-time employees and how many of them qualify for Exchange-based premium subsidies.

Continue reading "Employers’ Denial of ACA Impact Could Cost Them a Fortune" »

8 Tips to Becoming Your Clients’ “Advisor of Choice”

Over the past three decades, a growing number of CPAs expanded their service offerings beyond tax compliance to help individuals and families address and plan for all aspects of their financial lives. These aspects might include paying for children’s education, transferring wealth, protecting assets, funding retirement and more. Trusted-adviser_2

As CPA financial planners help their clients realize their long-term goals, this expansion of service offerings opens up new revenue streams and deepens client relationships.

Earlier this year, as part of the AICPA’s PFP Section’s CPA Financial Planning Thought Leadership series, I moderated the webcast, “Being an Advisor of Choice.” Panelists shared their perspectives on working with individual and closely held business clients, the benefits of this expanded business model to the practitioner and firm and the outlook for maintaining this model. (See the note at the end of this blog post about how to download a recording of the webcast.)

During the webcast, we discussed a great deal of information. Here is a quick rundown of eight ways you can become your clients’ “advisor of choice.” How many of these are you already doing and how many would you like to accomplish?

1. Add Financial Planning to Your Practice

Tax compliance is becoming a commodity. Integrating financial planning into your practice offers a chance to make a deeper connection with clients, requiring you to give objective advice and keep clients’ best interests at the forefront.

2. Determine Your Value Proposition

When you add financial planning to your practice, you also add value, but you figure out what kind of value you want to add in order to grow your bottom line. The last thing you want to do is become just another firm offering the same services as everyone else.

3. Avoid Becoming a One Trick Pony Advisor

Clients are outgrowing the services of mono-line advisors. If you were simply a specialist in tax or investments, your clients will grow beyond your services.

4. Know Your Strengths

Position yourself as the advisor of choice. You have an excellent professional reputation, offer high quality professional advice and possess transferable skills that are diverse and applicable to various client situations.

5. It’s all About the Relationship

Deepen and enhance the relationships you have with existing clients who already understand your role as their advisor of choice. You may even need to reposition yourself with existing clients, particularly CFOs or controllers who retain you just for audit work or corporate compliance.

6. Listen to Your Clients

Competent advisors do their best work when they sit down with their clients to let them voice their concerns about the current financial world they live in. Listen for issues you can help understand and solve.

7. Build on Your Three Distinguishing Qualities

As a financial professional, you are competent and objective and maintain the highest integrity. Remember these qualities and seize the best opportunities you can.

8. Break the Mold

Advisors who are willing to address the wide range of issues that come into play and work with their clients and other specialists to serve their needs will be in a great position to be a strong, key resource.

AICPA PFP Section’s Thought Leadership Series

Access the free webcast recordings and presentation materials from the AICPA PFP Section’s Thought Leadership series featuring forward thinking from CPA financial planners advising their clients in tax, estate, retirement, risk management and investments. Two panels will host free thought leadership webcasts on November 12th and 13th covering investments and the outlook for the CPA financial planning profession.


Lyle Benson, CPA/PFS, CFP®, President and Founder, L.K. Benson & Company. Based in Baltimore, Lyle’s firm specializes in personal financial planning, tax and investment advisory services for high income individuals and families, as well as corporate executives and entrepreneurial, closely held business owners across the country. Lyle is chair of the AICPA’s PFP Executive Committee.

 Financial planning image via Shutterstock


AICPA in the News: Personal Finance Tips from CPAs

CPA Web-PFS_center_1cCPAs provide tremendous value in the area of financial planning by helping clients understand changes in laws, as well as trends which can affect their bottom line. Serving as trusted advisors, CPAs who work in personal financial planning are able to tailor their advice to meet the changing needs of their clients in an ever fluctuating economy.

Below are a few recent media articles highlighting the guidance of CPAs.

Jerry Love, CPA/PFS, responded to a Kiplinger’s Personal Finance reader who asked how to save for retirement if their employer doesn’t offer a 401(k).

If you have an eligible health insurance policy with at least a $1,250 deductible -- or $2,500 for family coverage -- you can contribute to a health savings account, said Love. You can contribute up to $3,300 in 2014 if you have individual coverage, or $6,550 for family coverage (plus $1,000 if 55 or older). Contributions are tax-deductible (or pretax) and can be used tax-free for medical expenses in any year.

Newsday reports that, with mortgage rates hovering around 4 percent, many Americans are considering purchasing a home. However, it is important to not rush to a lender until you're creditworthy. The best way to do that is to raise your credit score. AICPA member Kelley Long, CPA/PFS, advised that not applying for other loans or opening new credit cards would be one way to avoid damaging your credit score. In addition, not closing cards is a prudent step, because it reduces your available credit and therefore boosts the percentage of available credit your other cards represent.

A recent article relied upon the expertise of two CPAs to shed light on the havoc financial fraud can cause the elderly. “If you’re 20 [years old] and something happens to you financially, you have a long time to make a difference “If you’re older and not able to go back to work and recover, having fraud perpetrated on you can significantly change the rest of your life,” said Mackey McNeill, CPA/PFS.

It can be difficult for those who are worried about their elders to gain more insight into their financial decisions to help prevent fraud, but Leonard Wright, CPA/PFS advises that effective communication can help break through. “There are ways to communicate with the elderly so they don’t feel like you’re taking over, said Wright. Tell your elderly loved ones that you can get a second opinion with finances just like you do with doctors.” This could also mean explaining the importance of calling another family member before sending any money to a third party or agreeing to a new contract, credit card or investment.

James Schiavone, Media Relations Manager, American Institute of CPAs. 

12 Planning Tips for Social Security Benefits

Social-security-word-cloudHelping clients plan for Social Security benefits may involve a lot of information gathering and research, but doing so could save them a heap of headaches and a lot of money. Here are 12 planning tips that stand out to me as potential opportunities. These can provide great relief and keep your clients out of the danger zone.

Continue reading "12 Planning Tips for Social Security Benefits" »

Protecting Yourself Online

PrivacyWhat were you doing at 7:32 p.m. on April 23, 2011? Chances are that Google, Facebook, Microsoft, Apple, your phone company and your Internet Service Provider know. If you share a computer, all of the other users may know. Your employer may know. As will the government, if it so chooses. And if this isn’t enough, they may even know where you were when you were doing it.

Is this a problem? Well, that depends. Do you like getting bombarded with online ads and email obviously based on your recent surfing habits? Are you researching that perfect gift for your wife or husband, or planning a big surprise party? Perhaps you are pregnant or researching medical symptoms and don’t want anyone to know?

Continue reading "Protecting Yourself Online" »

3 Social Security Planning Opportunities for Survivors

Social-security-planningSocial Security survivors’ benefits are similar to Social Security retirement benefits, but there are certain planning opportunities available to the widowed spouse. As the family’s trusted advisor, make sure you understand these opportunities in order to give your clients the most beneficial advice possible. Here are three planning opportunities for survivors:

1. Planning for Spousal Income Needs. Depending on the age of the parents and children, there is a gap in the survivors Social Security benefits. From a financial planning aspect, it is imperative that you discuss the impact this gap will have on their financial goals. After all, it will affect them for years to come and will determine their income.

Continue reading "3 Social Security Planning Opportunities for Survivors" »

Creating a Bright Line between Accounting and Reporting

Grease (film)(Photo credit: Wikipedia)

Let’s go back in time to December of 1978. You are longing for the weekend and thinking about going to see the new movie “Grease”that everyone is talking about. You need to get away from the three channels on your television set, as all that you see is the news about anti-Shah protestors in Iran and the craziness of someone giving a baseball player $32 million in a four-year contract.  Maybe President Carter can do something to get us back on track. Well, at least you have your brand new Betamax and can record whatever television you miss – as long as it is not more than one hour long...

At work, your client has asked you to perform bookkeeping services for them. The client needs you to process their payroll, record certain journal entries in their general ledger book and calculate the amount of sales tax that they need to remit to the state. Additionally, the client needs you to prepare monthly financial statements for the owners and the bank that provides the entity’s line of credit. You sit down with a few sharpened pencils and ledger paper and draft those financial statements. The recently issued Statement on Standards for Accounting and Review Services No. 1, Compilation and Review of Financial Statements,requires that you, at a minimum, perform a compilation engagement with respect to those financial statements that you submit to your client. So, you issue a compilation report along with those financial statements. The application of the compilation literature is easy to understand and apply.

Continue reading "Creating a Bright Line between Accounting and Reporting" »

Peer Review Focus on Maintaining Independence

Peer-reviewAs part of its on-going commitment to helping members maintain and enhance audit quality and to improve the consistency of quality across the profession, the AICPA recently launched the Enhancing Audit Quality Initiative. Because of the critical nature of the initiative, the AICPA Peer Review Team will take immediate action on two facets of the initiative: identifying emerging industries and high priority audit areas and applying a combination of outreach, training, and robust peer reviews in these industries and areas.

The Peer Review Team has developed a list of potential “deep dive areas” or emerging industries and risk areas, derived through careful analysis of the following:

Continue reading "Peer Review Focus on Maintaining Independence" »

The Science Behind Social Security Benefits Calculations

Social-securityWhile the Social Security Administration calculates Social Security benefits, it is your due diligence to know the basics so that you can understand how an additional year of earning will affect your clients’ projected benefit.

Some people think Social Security benefits are complicated to figure out; in actuality, it’s pretty straightforward. Social Security benefits are computed through this two-step process:

  1. Compute the average indexed monthly earnings, called AIME.
  2. Compute the primary insurance amount, based on the AIME.

Continue reading "The Science Behind Social Security Benefits Calculations" »

Updates from AICPA Fall Council 2014 #AICPAGC14

The AICPA governing Council’s fall 2014 meeting is taking place this week, Oct. 19 to 21. Updates will be provided on several important issues to the CPA profession, including management accounting, the CPA Exam, ethics and audit quality. Arleen Thomas, CPA, CGMA, AICPA Senior Vice President Management Accounting and Global Markets, will highlight important milestones leading to 2015 for the Chartered Global Management Accountant designation and explore the evolution of the Uniform CPA Examination. Susan Coffey, Senior Vice President – Public Practice & Global Alliances, will update members on the profession’s commitment to quality and the code of conduct, as well as the pending amendment to the definition of attest. You can follow along with Council action with #AICPAGC14 on Twitter or view the stream below. (Email subscribers can view the stream on our website.)


Live Blog Updates from AICPA Fall Council 2014 #AICPAGC14

Getting to the Bottom Line about Contingent Fees

"Intaxication: Euphoria at getting a refund from the IRS, which lasts until you realize it was your money to start with." Unknown, from a Washington Post word contest

Court-judgementWhen is a CPA practice not "practice before the Internal Revenue Service?" And if it is not practice before the IRS,  does that mean it’s okay to use contingent fees in a client arrangement?

Why do I write about this topic now?  This past July, the U.S. District Court for the District of Columbia issued an opinion (Ridgely v. Lew) that takes a significant strike at IRS’s ability to regulate contingent fee arrangements. 

Gerald Ridgely is a CPA who practices with Ryan LLC, a global tax services company, but not a registered CPA firm. Ridgely sued the IRS, arguing that the Service exceeded its authority under Circular 230 in regulating the preparation and filing of ordinary refund claims, which practitioners file after a taxpayer has filed his original tax return but before the IRS has initiated an audit of the return.  Ridgely contended that the inability to charge a contingent fee for a refund claim cost him clients and significant revenue. Under a contingent fee arrangement, the client only pays the fee (or a percentage of the refund) if the claim is successful.

Continue reading "Getting to the Bottom Line about Contingent Fees" »

How to Pass the CGMA Exam? Practice, Practice, Practice

PracticeNew Year’s Eve is one of the few holidays celebrated almost universally in countries around the world, with parties, champagne toasts, and fireworks. This year, December 31 will also be a key date for management accounting professionals. That’s because it marks the final day that AICPA voting members who meet relevant experience requirements are exempt from the upcoming CGMA exam.

The exam’s unique strategic case-study format is designed to assess problem-solving skills in real-world business situations and test a broad range of competencies defined as crucial by businesses around the world. Since the case study format is quite different from traditional exam techniques like multiple choice or fill-in-the-blanks, we recently released a practice exam that candidates can use to prepare for the exam.

Continue reading "How to Pass the CGMA Exam? Practice, Practice, Practice" »

The New Realities of Referral Marketing for CPAs

CPAs and other financial services firms largely rely on referrals to grow their client base and stay in business. This business model has worked for a countless number of years. However, the way clients make decisions has changed, which affects your rate of referral. Under the new model, a referral is only the first step. Used the right way, technologies like websites, email and social media can energize your current client base to make referrals and increase the conversion rate of referral prospects.

There is no longer one linear funnel for client referrals, but rather a series of influencing points that lead to channels where the prospect is most comfortable making contact. Today, a referred prospect is likely to make initial contact in a number of ways:

  • Through your website. They will visit your website to understand why your firm is different and whether your value proposition aligns with the prospect’s expectations.
  • Social media. A prospect will turn to social media to get a sense of your firm’s focus and culture. They may also turn to review websites that allow users to leave feedback, such as Yelp.
  • Email newsletter. Prospects might sign up for your e-newsletter to get a preview of what it is like to be your client.


Continue reading "The New Realities of Referral Marketing for CPAs" »

10 Ways to Personalize Your CPA Firm’s Marketing Efforts

Share a CokePersonalized marketing is at work all around us. We see it every day, from personalized key chains and other souvenirs sold at tourist destinations to featured recommendations on, companies are tailoring products to make them more targeted and personalized.

This summer Coca-Cola launched its “Share a Coke” marketing campaign aimed at teens and Millennials. In an effort to personally connect with consumers, Coca-Cola replaced its iconic script logo with 250 of the most popular names of young people. Personalized labels could be found on 20 oz. bottles of Coke, Diet Coke and Coke Zero all summer long. Coca-Cola also encouraged customers to share their experiences on social media and many Coke enthusiasts responded by posting pictures with soda bottles bearing their names. In fact, during the first half of the campaign consumers shared more than 125,000 posts via social media networks. The Wall Street Journal reported that Coca-Cola soda sales in the U.S. increased by more than two percent following the launch of the campaign.

Why was the Share a Coke campaign so successful? Studies show that people prefer receiving customized messages rather than generic ones. Individualized communication signals that the consumer is unique and important. Like Coca-Cola, CPAs can take steps to personalize their marketing efforts.

Continue reading "10 Ways to Personalize Your CPA Firm’s Marketing Efforts" »

AICPA Announces 2014 Accounting Scholars Leadership Workshop Graduates

The American Institute of CPAs recently announced the 2014 Accounting Scholars Leadership Workshop graduating class. The Workshop, an annual invitational event now in its 20th year, is open to ethnically diverse accounting and finance majors who plan to pursue the CPA license.

ASLWThe 114 students selected for this year’s Workshop successfully completed the two-day program, which strengthened their professional and leadership skills, while highlighting the career possibilities becoming a CPA affords. The AICPA Foundation covers all program costs, which include the student attendees’ transportation, hotel accommodation, and meals.

“I am confident that the life lessons learned at ASLW will benefit these students and will help them immensely along their path to becoming CPAs,” said Kim Drumgo, AICPA director of diversity and inclusion and Vice Chair of the National Commission on Diversity and Inclusion.

Continue reading "AICPA Announces 2014 Accounting Scholars Leadership Workshop Graduates" »

5 Steps to Creating a Social Media Strategy

FallOctober is here - the leaves are changing color, there’s a chill in the air and we’re drawing close to the end of another year. At your CPA firm, you’re likely getting ready for performance reviews, preparing for busy season and working on strategic planning for 2015 and beyond. As you put together your marketing plan, be sure to spend some time formulating a social media strategy. This will help determine how often you blog, what social channels you use and whether you invest in social media advertising – all of which will impact how you allocate resources for the coming year. Creating a social media strategy doesn’t have to be a long and arduous process. You can get started by asking these five questions:

Continue reading "5 Steps to Creating a Social Media Strategy" »

Boost Your Bottom Line with Predictive Analytics

Traffic-lightsWouldn’t life be great if we all had a crystal ball? While wizardry and fantasy may sound like a great way to see the future, no one would actually advise a client or employer on assumptions based in magic and hearsay.

Typically, we serve our clients and employers based on fact-based historical reporting, which tells us where we are and where we’ve been. However, there is another way to offer guidance and opinion: predictive analytics, a process-driven activity that combines facts about the past with inferences to anticipate the future.

Continue reading "Boost Your Bottom Line with Predictive Analytics" »

Should You Sign a Business Associate Agreement Under HIPAA?

HIPAA-complianceDr. Smith left you a voicemail at 10 p.m. on a Sunday night. You couldn’t make out the entire message due to a weak cellphone signal and background noise, but you gathered he was talking about the Health Insurance Portability and Accountability Act and needing you to sign something called a Business Associate Agreement.

Dr. Smith is an excellent dermatologist, but you know from doing his taxes that regulatory compliance isn’t necessarily his forte.

Continue reading "Should You Sign a Business Associate Agreement Under HIPAA?" »

Implementing the Future of Learning Recommendations

In May 2014, the AICPA’s Future of Learning Task Force announced four broad recommendations to positively impact the future of learning for the CPA profession. The recommendations are:

  1. Innovate and experiment
  2. Ignite a passion for learning
  3. Make learning personal
  4. Measure what matters

These recommendations and insights, as well as other resources related to the initiative, are now available on the new Future of Learning site. If you haven’t yet visited the site, I highly recommend you do so to gain insight into the drivers behind the initiative and its recommendations. Navigating the site will take you on a journey that explores change within business, the evolving workplace and shifts in the CPA profession. You’ll gain a better understanding of trends impacting learning, ranging from how technology is rapidly changing delivery options to the impact of Millennial expectations on learning and the workplace.

In this four-part blog series, we’ll go in depth and look at each of the task force recommendations, as well as ways you can begin to implement them.

Continue reading "Implementing the Future of Learning Recommendations" »

Laying the Final Bricks of the CGMA Foundation

LibraryAt launch in 2012, we promised our members and the global employer market that the Chartered Global Management Accountant designation would recognize and support accounting professionals who know how to connect finance to strategy. Backed by the combined resources and reputations of the AICPA and CIMA, CGMAs would be recognized as finance leaders who see across the entire organization to make better business decisions.

In the last few months of 2014 we’ll deliver the fundamental pieces that will help define the profession of management accounting and solidify the CGMA’s position as the premier global management accounting designation.

Continue reading "Laying the Final Bricks of the CGMA Foundation" »

The DATA Act: What CPAs Need to Know

Are you aware that the new Digital Accountability and Transparency Act, signed into law earlier this year, will have a significant impact on CPAs who work in government and or interact with the federal government?

Known as the DATA Act, the new law calls for the adoption of a data standard that is “a widely accepted, nonproprietary, searchable, platform-independent computer-readable format” to report federal contract, loan and grant spending information by federal programs. CPAs need to be aware of the changes so they can better serve their clients and be prepared to help agencies meet the new requirements.

Continue reading "The DATA Act: What CPAs Need to Know" »

Value Pricing Tax Services: Don’t Leave Money Behind

Have you ever stopped and asked yourself why you would ever want to make a tax return engagement more efficient, if it really only means you will charge less over time? 

Stay with me here while I explain how value pricing and efficiency can go hand-in-hand.  Below is a hypothetical chart of fees incurred to prepare a 1040 return, as well as the amounts actually invoiced.  I am going to explain how you are leaving money on the table.

























Year one is largely spent reviewing the prior year returns to familiarize yourself with the client and to establish your internal workpapers. This will naturally take more time. So when you bill the client and see that you have incurred $1,500 in fees, your gut might tell you that the return is not worth that amount. So, you discount the fees to reflect the amount that you a) think the return was worth and b) think the client is willing to pay. 

Continue reading "Value Pricing Tax Services: Don’t Leave Money Behind" »

Increased Demand Predicted for Forensic and Valuation Services

FVS-SurveyAs part of its commitment to serving member needs, the AICPA Forensic and Valuation Services Section regularly surveys FVS professionals to get a sense of the state of the practice today and the trends these professionals will face in the short term. According to the recent 2014 AICPA Survey on International Trends in Forensic and Valuation Services, done in conjunction with CPA Canada, there is currently a healthy demand for forensic and valuation services, and very strong growth potential for the future. This is good news.

The survey found that 76 percent of forensic and 54 percent of valuation respondents expected their practices to grow, with the majority expecting growth of between 10 percent and 50 percent over the next two to five years.

Here are a few predictions — by practice area — from the survey:

Continue reading "Increased Demand Predicted for Forensic and Valuation Services" »

The Global Future of Financial Literacy

September is underway and that means it’s back to school for students. As teachers finalize their lesson plans, a growing number may be incorporating financial literacy education. In fact, many schools around the country have already begun integrating financial literacy into their curriculums. And it makes perfect sense.

Helping young people understand financial issues is a matter of great importance. Younger
generations are facing an increasingly complex financial field, compared to their parents, and they are more likely to shoulder more financial risks in adulthood, especially when it comes to saving, planning for retirement and covering healthcare needs. On July 9, the Global Financial Literacy Excellence Center in collaboration with the U.S. Department of Education, the U.S. Department of the Treasury, and the Consumer Financial Protection Bureau hosted the U.S. release of the 2012 Programme for International Student Assessment financial literacy data. The assessment tested 15 year-olds on their knowledge of personal finances and ability to apply it to their financial problems. This is the first large-scale international study to assess the financial literacy of young people.

Continue reading "The Global Future of Financial Literacy " »

19 Years Until Social Security Trust Fund Runs Out

English: Scanned image of author's US Social S...(Photo credit: Wikipedia)

The government is projecting that the Social Security Trust Fund could run out of cash by 2033. While 19 years might sound like a long time, many of us have clients in their 30s and 40s who want to know that they’ll receive all of the Social Security benefits due to them when they retire. Of course, CPAs and those of us who offer financial planning and estate services caution our clients not to depend solely on their Social Security checks to carry them through their later years.

It’s alarming that the money may, indeed, run out—and even though this news is nothing different that what we’ve already heard about the money—I can’t help wondering how many Americans aren’t familiar with how dire the situation may be.

Continue reading "19 Years Until Social Security Trust Fund Runs Out" »

Reimagining Auditing in a Wired World

Audit-quality-word-cloudHave you ever wondered what a day in the life of an auditor will look like in the near future, and how it will be different from today’s practice? Here is a glimpse…

You enter the audit room at 7:30 a.m. on Tuesday morning as the external audit partner of XYZ Enterprises, Inc. After settling in, you sign into AART, the audit firm’s Automated Audit, Reporting and Tracking system that was developed to leverage the widespread availability of information on a 24/7 basis. AART’s technology monitors XYZ Enterprises’ controls, transactions and account balances continuously.  As you review the dashboard you notice that all of your audit status indicators are green, except for one.  You also notice that you have been copied on a message that AART sent to your controls team notifying them of a modification to a key control parameter in the centralized enterprise resource planning system.  You begin looking into the situation.      

Continue reading "Reimagining Auditing in a Wired World" »

Top 5 Website Best Practices for More Leads

LaptopAccording to Google, 81 percent of searches for products and services now happen online. By the end of 2015, the majority of web searches will be via a mobile device. Your CPA firm’s website needs to be easily found in search results to ensure you are able to capitalize on this game-changing trend.

Refreshing your marketing to maintain its effectiveness despite the change in how potential clients find your services is not as difficult as you might think. The right approach is to focus on the areas that offer the biggest return and commit to an ongoing improvement program. Your core digital asset is your website. It will deliver the first impression to cold prospects and can reinforce referred prospects’ positive view of your firm. The goal in both cases is to give the visiting prospect a reason to take the next step and contact your firm—lead conversion.

Here are five steps you can take to increase the number of lead conversions from web visitors:

Continue reading "Top 5 Website Best Practices for More Leads" »


Subscribe in a reader

Enter your Email: