2012 Presidential Election and the CPA Profession

The 2012 presidential election is just around the corner. While it’s not clear who will win the White House, there are many reasons you should be paying close attention. And we’re seeing indications that you’re doing just that. In a CPA Letter Daily poll on Oct. 16, 65% of more than 3,200 respondents said they would be watching that night’s presidential debate.

There is no shortage of issues affecting CPAs and our clients or employers. Highlighted below are some of the important financial issues facing our country:

• “Fiscal cliff.” The uncertainty surrounding potential tax increases and spending cuts, as well as related issues, has brought Washington to a stand-still. Uncertainties include extension of the Bush-era tax cuts, a fix for the Alternative Minimum Tax, tax increases attached to the Patient Protection and Affordable Care Act, and a package of mandatory federal spending cuts totaling $1.2 trillion over 10 years.

Day 3 of AICPA Governing Council Fall 2012 Meeting

At the final day of the AICPA governing Council Fall 2012 meeting, the AICPA elected a new chairman of the board of directors, Richard J. Caturano, CPA, CGMA. Follow the "read more" link for a look at the day through the eyes of social media. (If you're viewing this post through our email subscription, please click through to read the entire story.)

Day 2 of AICPA Governing Council Fall Meeting 2012

The second day of the fall meeting of the AICPA governing Council happened yesterday and featured a professional issues update from AICPA President and CEO Barry Melancon, CPA, CGMA. Follow the "read more" link for a look at the day through the eyes of social media. (If you're viewing this post through our email subscription, please click through to read the entire story.)

Selling a Business or Advising a Seller? Tips to Navigate the Fiscal Cliff

With about 10 weeks left in the calendar year, it would be difficult for even the most motivated business owners to complete their company’s sale by Dec. 31, unless they’re already in process.

Some owners are hustling to get that process done to avoid falling over the tax cliff set to take effect Jan. 1. But the principles of selling a business apply no matter what the calendar says, according to Scott Miller, CPA/ABV, an expert presenter for the Oct. 30 Journal of Accountancy webcast, Inside Buyout Basics and the Tax Cliff: A Timely Combination.

Does Your Organization Invest in its Employees’ Training and Skills Development?

Organizations around the globe face extraordinary challenges when navigating through the current global economy. To thrive in the long-term, organizations must constantly innovate, evolve and transform.

One of the most critical factors that determines an organization's fate in this environment is the quality of its human capital and the way it manages its talent pipeline.

A recent report from the AICPA and CIMA showed that while most companies understand the importance of human capital, they do not appear to have the right systems, processes and information in place to manage talent effectively. Think about your organization for a minute. Does it invest in training and the development of talent and skills? Or does it view training as a compliance tool?

In the News: AICPA Financial Literacy Survey Featured on the Today Show

Yesterday, Al Roker and Jean Chatzky of the Today Show discussed the issue of kids and allowance, citing the results of AICPA’s recent survey with Harris Interactive on the subject.

3 Myths of Succession Planning

Sometimes we CPAs are blind to our own advice. We spend hours every day working with clients, steering them toward financial prosperity, helping them prepare for retirement and ensuring their businesses thrive well into the future. What are we doing for own practices? Not always enough.

Although succession planning is a proven strategy for achieving long-term firm goals, the 2012 PCPS Succession Survey reveals that only 46 percent of multi-owner firms have a written, approved succession plan. In addition, six percent of sole proprietors have a practice continuation agreement however, that’s only a first step toward developing a full succession plan.

Dispelling the following three common myths may help further grow succession planning’s role in practice management. It may also help CPAs reap a succession plan’s full benefits—client and staff retention, a more comfortable retirement and the peace of mind that comes from being prepared for the future.

What is a ‘Digital CPA’?

There’s no question technology is having a huge impact on how CPAs and their clients conduct business, but the adoption rate isn’t uniform within the profession. Some practitioners are taking a wait-and-see approach. Others are sticking their toes in the water. And still another group is fully embracing technology and all that it promises—integrating innovation throughout their firm’s processes and workflows and becoming digitally present in today’s online world.

At CPA2Biz, we use the term ‘Digital CPA’ to describe the latter category. The Digital CPA harnesses the power of the cloud, the broad use of mobile devices and a carefully calibrated online presence to attract clients and build new service lines. It’s inevitable the entire profession will arrive at this same place one day – and that day isn’t far off.

Value Pricing: Aligning Your Interests with Those of Your Clients

The days of providing services first and billing later are dwindling. As this blog post by Jim Boomer, CIO of Boomer Consulting, Inc. indicates, an increasing number of accounting firms are moving into the digital age and transitioning their practices from billing in arrears to value pricing strategies, in order to better align their interests with those of their clients.

Billing: Where's the Real Client Value?

Accounting firms have been billing for, well, forever. Billing may make sense to you as a practitioner, but it may not to your clients.  The truth of the matter is, clients are often baffled by that final bill―which can result in them questioning the real value of your services, or even worse, causing them to look for a better deal elsewhere.

Clients explain the scope of their project (taxes, auditing and the like), firms do the work, tally up the hours spent by partners, junior associates and administrative assistants and send out a bill for services rendered. However, as most firms can attest, a client's reaction to that bill is rarely, “Well that's not so bad at all!” Instead, it will result in an angry client creating perceived indifference between the firm and the client—the number one reason why clients leave. It isn’t about the price, it’s about the surprise of the price. Then before you know it, the client leaves.

5 Improvements to Civil Litigation Procedure for Financial Expert Witnesses

How can civil litigation become less costly and complicated and more fair for all involved? Although rules of civil procedure call for a quick, inexpensive and fair determination of all civil actions, those goals often are not met. The AICPA Forensic and Valuation Services Executive Committee and the members of the FVS membership section are well aware of the many problems within the system that can cause lengthy delays and unnecessary expenses. Because CPAs have a unique perspective on the issues involved, the FVS Executive Committee, in conjunction with the Institute for the Advancement of the American Legal System at the University of Denver, surveyed FVS Section members, many of whom are frequently retained as expert consultants or testifying witnesses in civil litigation. Based on the survey findings, the executive committee has released a new report, “Another Voice: Financial Experts on Reducing Client Costs in Civil Litigation.”

The report offers stakeholders in the civil justice system--including judges, attorneys, financial experts and clients--five recommendations to enhance the effectiveness of financial experts and efficiency of their use in the civil pretrial process:

Optimizing Your CPA Firm for Local Search

More than 167 million people will shop online this year. Social commerce sales are expected to total $9.2 billion by the end of this year and could climb to $14.25 billion in 2013 and $30 billion in 2015. Consumers are not just shopping for the latest gadget; they’re buying everything from groceries to professional services, including those offered by your CPA firm.

In the News: CGMAs Can Bridge the Gap in Human Capital Management

David McCann at CFO.com spoke with Arleen Thomas, CPA, CGMA, AICPA SVP of management accounting, about a recent talent management survey for Chartered Global Management Accountants conducted jointly between the AICPA and the Chartered Institute of Management Accountants by the Economist Intelligence Unit. The report found that 43 percent of the CEOs, CFOs and human resource directors surveyed said their companies have missed financial goals in the past 18 months because of inadequacies in human capital management. Almost the same number, 40 percent, indicated that such shortcomings—which could include insufficient systems, processes or management information—have hindered their ability to innovate. “We believe that talent and the human dimension drive business growth and companies haven’t focused enough on that,” said Thomas. “Too many companies look at talent in terms of what they have to do to comply with labor laws and regulations, rather than understanding that it can be a competitive differential.”

CPAs Win Big at the Emmys

No, CPAs didn't actually win an Emmy. Nor were they nominated for one. But the Emmys and some of the cast of "The Big Bang Theory" took a new and creative approach to acknowledging the CPAs who tabulate and guard the Emmy votes. Traditionally, the CPAs involved are introduced on stage with little fanfare. However, this year they got special treatment and admiration from Sheldon Cooper. Watch the clip below. CPA! CPA! CPA!

 

Related articles

• Evolution of the Profession (video) (aicpa.org)

What Can CPAs do about Tax Identity Theft?

I am constantly getting emails and calls from members who have stories about how one of their clients has become a victim of tax identity theft and the person’s refund has been put “on hold” until the government can sort things out. Some of these stories can be heart wrenching. 

It’s no surprise that these stories are on the rise. Tax identity theft has mushroomed – the IRS identified 1.2 million incidents in 2011, over double the amount from 2010 (440,581) and the numbers may actually be much higher according to a Treasury Inspector General analysis. So, unfortunately, the odds that your clients may be affected have gone up considerably.

In the News: Executives Pessimism Towards Economy Erodes Confidence in Own Organizations

With the announcement yesterday that the Federal Reserve is launching a third quantitative easing in an attempt to generate momentum for the stalling recovery, the economy—and unemployment—are back in the spotlight.

The AICPA’s 3rd quarter Economic Outlook Survey results were released last week, which provided insights into the direction of the economy from 1,365 qualified CPAs who hold leadership positions, such as chief financial officer or controller, in their companies. Their gloom was reflected in last week’s jobs report, which showed the labor market continuing to stagnate and served as one of the reasons behind the Fed’s actions yesterday.

Compelling Research and Helpful Tools for CGMAs

As a busy CPA in Business and Industry, you may not have time to seek out resources to help you in your day-to-day work. More than 33,000 CGMAs are already enjoying access to valuable benefits like innovative thought leadership reports and tools. The following is just a sample of the dozens of resources available on CGMA.org.

4 Pieces of Advice to Help Clients Collect Money Faster

Imagine having more than 1 out of every 3 dollars you’ve earned tied up and inaccessible.

That’s money you can’t use to advertise, to develop new products and services, or to hire employees.

For many business owners, that scenario is a day-to-day reality as they sit with 40 percent or more of their assets tied up in accounts receivable. Obviously, when it comes to money that your clients are owed, they want to collect as quickly as possible.

In the News: Making Allowance a Teachable Moment

When I reflect upon my childhood, I fondly recall my elementary school days at P.S. 116 in Manhattan. Despite enjoying school, my favorite time of the year was when I would proudly present my parents with my final report card of the school year. The reasons for this were two-fold: like most kids, I always looked forward to my summer vacation, and I knew that if I got good grades my parents would reward me with a gift of my choice (usually a Nintendo game).

As I turns out, I wasn’t the only kid being compensated for doing well in school. According to a recently released AICPA survey on how parents treat the subject of money with their children, 48 percent of parents say that they pay their kids for getting good grades. As CNN Money noted, the survey showed that the going rate for an ‘A’ is $16.60, which makes me think my parents were getting off easy back in the day.

How Do You Tackle Health Care Reform?

One provision at a time, of course!

Everyone is talking about the new Affordable Care Act.  Everyone is reading about it. Everyone is writing about it. Everyone is learning about it. But what is anyone doing about it?   

Not enough is what I am hearing from my fellow CPAs. And that is quite understandable when simply thinking about the magnitude of health care reform can leave you scratching your head. But there is a way to devour the totality of the legislation without feeling completely overwhelmed:  tweak your approach.  Just as the saying goes, “How do you eat an elephant? One bite at a time, of course!” The same holds true for tackling health care reform, you tackle it “one provision at a time.”

Prior to the Supreme Court’s decision on June 28 to uphold the mandate requiring  most U.S. citizens and legal residents to maintain minimum health coverage, many individuals and businesses put off action in case the law was overturned. Now that the results are in, many people are taken aback wondering how to go about implementing the vast array of elements that make up health care reform.

New Tools to Help Companies and Auditors Evaluate XBRL

As the last group of companies is subject to the final phase of the Securities and Exchange Commission mandate this summer, we are reaching a major turning point for eXtensible Business Reporting Language implementation in the U.S. Investors now have a full data set accessible for their analyses as all information from a company’s financial statements, as well as the notes and schedules, are individually tagged at a detailed level. This means investors now have the ability to search and access specific pieces of information for all public companies.

The Role of the CPA in a Crowdfunding Future

In 2010, many sectors of the U.S. economy began to improve from the Great Recession—however, small businesses lagged behind, largely as a result of having trouble raising the capital they needed in a still tenuous financial recovery.

This led to the advent of a concept called crowdfunding. Crowdfunding—inspired by crowdsourcing—describes the collective cooperation, attention and trust by people who network and pool their money together, usually via the Internet, in order to support efforts initiated by other people or organizations.

CPAs Stress the Importance of Long-Term Care

There is no way to sugar coat it, readers - we are all getting older. I remember when I was a teenager, I would complain about the aches and pains I would get from playing sports and my father would say to me with a wry smile “wait until you get older.” My health was not an issue I wished to consider back when I was a teenager, and I don’t particularly like thinking about it now – but there is certainly no getting around the fact that the older we get, the more important it is to have a plan in place to deal with health issues as they arise.

According to the U.S. Census Bureau, between 2010 and 2050, the U.S. is projected to experience rapid growth in its older population. In 2050, the number of Americans aged 65 and older is projected to be 88.5 million, more than double its projected population of 40.2 million in 2010. This means that an increasing number of Americans will be making important decisions about their long-term health in the coming years.

4 Simple Ways to Boost Your Online Presence

It’s important for any CPA firm to have a strong presence online. According to Local Search Usage Study: Bridging the Caps, From Search to Sales, 70% of consumers go online first for local business information. Are potential clients finding your firm? Not only do you want to be easy to find in cyberspace, but you also want to present yourself as an expert and trusted financial advisor. A simple website is a start, but is not enough to give you an edge in today’s competitive environment. In order to find new clients, and keep the ones you already have, focus your efforts on ways to boost your online presence. I have found that even small efforts go a long way toward a more prolific online presence.

Here are four steps to raise your online credibility and widen your client base in the process.

5 Steps to Writing Effectively

You’ve got a big problem. You provide lots of documents to your clients and customers, but the information in the documents is very complex, and hard to understand. You know that most of your clients and customers don’t read the documents.

This could cause some big headaches down the road. Your clients and customers might claim not to have received critical information, if that information was buried in a big, ugly, confusing document somewhere.

Now there is a more immediate issue. In the wake of the financial scandals of recent years, the government is pressuring all financial companies to write their documents in plain English. The documents need to be clear enough for everyone to understand them.

Outlook for the Global Economy Declines in Latest CGMA Forecast

On July 10, the AICPA and CIMA released the results of the most recent CGMA Global Economic Forecast, which showed the world’s CEOs, CFOs and senior management accountants hold an increasingly pessimistic outlook for the global economy over the next 12 months. The shift to a more negative sentiment appears to reflect the worsening of the sovereign and financial crisis in Europe and its effects on other regions, as well as slower growth in China and political and fiscal uncertainty in the U.S.

The CGMA Global Economic Index – a comprehensive gauge of executive sentiment within the Forecast – declined 7 points to 58 from the first quarter 2012 reading of 65. The Index is a composite of 10 equally weighted survey measures on a scale from 0 to 100, with 50 considered neutral and numbers above that signifying positive sentiment.

Going on Vacation? Your Social Media Activity Doesn’t Have To

Keep your social media channels afloat; schedule content while you are away from the office.

You’ve set your out-of-office message, changed your voicemail greeting and, in your mind, you may already be on the beach listening to waves crash against the sand. Back to reality…there’s one more thing to take care of before you go!

Continuing your activity will help you stay engaged with those fans and followers while you are away.

“Big Data” Presents Big Opportunities for Firms and CFOs

It is difficult to ignore the tremendous growth in information technology that has been occurring over the last few years and how it is transforming business. Technology is enabling data to be captured at a volume and prevalence never imagined. Among social media sites, websites, smartphones, customer profiles and purchase information, it seems that just about every part of our business or personal lives provides information about ourselves that someone is collecting. But where does it all go? What happens to it? How can you turn this data into something meaningful, and more importantly, profitable?  

Information like this is called “Big Data” and Big Data has been a high-profile topic in business media and even the mainstream press. It refers to data sets that grow so large that they are nearly impossible to work with using traditional database management tools, but yet offer a powerful tool when married with strategic use. Big Data has been called “The next frontier for innovation, competition and productivity.”

Planning Strategies in Wake of the New 3.8% Medicare Surtax

The Supreme Court’s decision upholding the Affordable Care Act confirmed that taxpayers whose income exceeds a threshold amount will be subject to a 3.8% Medicare surtax on net investment income, effectively raising their marginal income tax rate. However, whether the Bush era tax cuts will be extended and, if so, for whom, remains an open question. In light of this uncertainty, CPAs may want to start planning for possible 2013 tax increases now, particularly for clients who will benefit from transferring assets to family members, decisions that can take time to make. Download a free Medicare surtax chart from Robert Keebler, CPA, and listen to his recent podcast on how to plan for the Medicare surtax below.

Understanding the 3.8% Medicare surtax under the healthcare law

Robert S. Keebler, CPA, MST, DEP, Partner, Keebler & Associates, LLP. Bob is a 2007 recipient of the prestigious Distinguished Estate Planners award from the National Association of Estate Planning counsels. From 2003 to 2006, Bob was named by CPA Magazine as one of the top 100 most influential practitioners in the United States. He is the past Editor-in-Chief of CCH's magazine, Journal of Retirement Planning and a member of CCH's Financial and Estate Planning Advisory Board. His practice includes family wealth transfer and preservation planning, charitable giving, retirement distribution planning, and estate administration.  

CPAs: The Startup Community Needs You

There is a joke in Hollywood that no matter what one’s day job is, everyone has a headshot in their back pocket. In business, the back pocket accessory isn’t the headshot—it’s the business plan. The startup community is exploding across the U.S. Whether it’s Silicon Valley, New York City or Detroit, state and local governments are embracing startups and encouraging talent to call their fair city home. According to the Global Entrepreneurship Monitor, there was a 60% increase in startups from 2010 to 2011. But there is one important thing most startups are missing: financial guidance.

You and I know the value a CPA brings to any organization. But many startups don’t. The qualities a CPA possesses—integrity, competence and objectivity—are needed and missing from some startups. Not to mention the financial and business knowledge that makes CPAs trusted business advisers. Recently, a report was released that examined the appointments of accounting and financial experts to audit committees, exploring whether concerns about the status of these experts discouraged companies from appointing them.

Case in point: Groupon.

Key Income Tax Planning Ideas for 2012

This year presents an unprecedented opportunity for CPAs to differentiate their firm and services and show that they provide significant value to their clients by having all of their clients' financial planning needs in mind, including retirement, estate, tax, investment and insurance planning. With so many unknowns in 2013 compounded by an election year, clients need to take advantage of many financial planning avenues now to avoid missing crucial opportunities to protect their nest egg and increase their net worth. Listen to Bob Keebler as he discusses how CPAs can use this uncertain time to help their clients plan for the future.

Key Income Tax Planning Ideas for 2012

Robert S. Keebler, CPA, MST, DEP, Partner, Keebler & Associates, LLP. Bob is a 2007 recipient of the prestigious Distinguished Estate Planners award from the National Association of Estate Planning counsels. From 2003 to 2006, Bob was named by CPA Magazine as one of the top 100 most influential practitioners in the United States. He is the past Editor-in-Chief of CCH's magazine, Journal of Retirement Planning and a member of CCH's Financial and Estate Planning Advisory Board. His practice includes family wealth transfer and preservation planning, charitable giving, retirement distribution planning, and estate administration.  

International Banking Rules Making Their Way into U.S.

After the financial crisis of the late 2000s, the global public’s view of the banking sector took a severe hit.  This sparked a need to finalize the revisions to the Basel Accord (Basel II) in order to restore confidence in the banking system and gain the general public’s trust. One way of accomplishing this goal is by requiring banks to maintain strong capital positions to be able to withstand any future market shock.   On June 7, the U.S. Federal Reserve issued the Basel III documents for public comment.

If you have regulatory reporting responsibility over banks, you should assess the proposals to understand how your or your client’s daily operations could be affected. The Federal Reserve has posted a Q&A on its website to discuss the specifics of Basel III. Each of the three proposed rulemakings is discussed below. Banking organizations that are not active internationally or are not subject to the market risk rules only need to review the first two notices of proposed rulemakings.

My Takeaway from The Supreme Court’s Health Care Decision

I started in this profession 30 years ago this month.  As an auditor, one of the things I’ve always liked is that we are in the unique position of being paid for our opinion. Not just any opinion, mind you, but a reasoned, objective opinion based on the evidence we gather and the application of professional judgment.

A lot has changed in the world of communications in those 30 years. There seems to be an increasing emphasis on making the provocative statement to draw attention, increase readers or Twitter followers. In spite of this irreversible trend, I have held fast to the now quaint notion that there will always be a place in the business world for sound, independent analysis and advice.

The most striking thing about the Supreme Court’s decision was not the decision itself, but the media debacle in reporting it. 

CPAs Can Help Americans Plan for a Secure Retirement

A recent CPA Letter Daily Poll recently asked the question, “What would make you cash in your 401(k) before retirement?” and an astounding 42% said nothing.  It’s not that they didn’t answer the question asked, because they did answer it, only their answer was “nothing.” Nothing would ever make them cash in their retirement savings before retirement. People are beginning to realize that you might need to struggle a little more today so that you do not have to struggle in your later years.

Of the remaining 58% respondents to the poll, 47% would use their 401(k) funds prematurely to supplement cash flow because of a loss of employment or to pay their mortgage.  Both of these choices fall into the category of providing cash for the needed expenses in life, certainly understandable.  The CPA Letter Daily is distributed predominantly to CPAs and I’m sure the respondents were also CPAs who have a current 401(k) plan balance.  What is the average worker in the U.S. doing to save for retirement?

Whatever November Brings, Start Preparing Clients Now

There will be some significant potential consequences on the horizon if Congress allows certain existing tax laws to expire on January 1, 2013. With only a few months left to plan, it’s time for CPAs to be aggressive in educating clients about the decisions they may face.

Several tax changes are now set to occur at the beginning of 2013 if Congress does not act. Among them:

• Individual income tax rates will go up.
• Long-term capital gains rates will rise.
• The gift and estate tax exemption will drop from $5.12 million to $1 million. Estate assets more than the $1 million exemption will be taxed at a maximum 55% rate.
• Taxpayers whose income exceeds a set “threshold amount” will be subject to a 3.8% Medicare surtax on net investment income, effectively raising their marginal income tax rate. An affected taxpayer in the 39.6% bracket—the highest bracket in 2013—will have a 43.4% marginal rate. This will apply to individuals and trusts and estates.

In the News: Leave that Savings Alone

A Bankrate.com article titled “Four Ways to Avoid Dipping Into Your Savings Account” quoted Kelley Long, a Chicago CPA, personal finance coach, and member of the AICPA’s National CPA Financial Literacy Commission. In the article, Long provides prudent advice on how to keep the money currently in your savings account right where it is. She suggests savers don't get an ATM card or sign-up for Internet account access - because it provides the user with hassle free access to their savings. For more savings tips, please visit 360 Degrees of Financial Literacy, a free program of the nation’s CPAs to help American’s understand their personal finances through every life stage.

Books, Exams and What I Owe

Heading off to college can be one of the most exciting times in a person’s life, especially if it’s your first time living away from home. I still remember the thrill of living with no parents for the first time. That thrill soon wore off when it was time to pay the bills—between books, groceries and my tuition, I didn’t understand how I was supposed to handle it all on my own. Fortunately, student loans showed up to save the day, sort of.

Although student loans made school financially possible, the reality of the debt I was accruing was completely off my radar while I was in school, as it is for many college students. Even with the post-graduation repayment grace period it was still difficult to pull together my loan payments the first few years; I was even one of the lucky ones who found a job the summer after graduation. In today’s economy, and with today’s unemployment rates, it’s a stretch to think that all graduates will find jobs within six months, let alone be on their feet enough to begin repaying their debt. Now, millions of college graduates may see their payments jump.

Why the AICPA Supports FAF’s Creation of Private Company Council

Many of you have seen news reports and AICPA communications about the Financial Accounting Foundation’s recent decision to create a Private Company Council. Given the serious concerns the AICPA had with FAF’s original proposal released in October 2011, I am providing additional detail as to the structural and process improvements FAF made with the new Private Company Council that enable us to support it.  

The AICPA’s issue with FAF’s proposal centered on the extent of the Financial Accounting Standards Board’s influence on the planned private company body and ratification of its decisions. We and more than 7,000 stakeholders urged FAF to strengthen the original council’s independence and they responded. The final plan is more about collaboration between the PCC and the Financial Accounting Standards Board than the approach outlined in the exposure draft. Now, FASB will be asked to endorse the PCC’s recommendations rather than ratify them and generally will have a limited time frame of 60 days to do so. I would describe the process as one of negative clearance, with a high threshold for a FASB veto. And if FASB does veto the PCC’s decision, the FASB chairman has to explain why in writing – and provide suggestions for obtaining approval – and it will be made public for stakeholders to evaluate.

Moments of Obligation: A Call for CPAs to Join the Financial Conversation

I’ve always been attracted to the “serving the public interest” element of our profession. As an auditor I didn’t see myself so much as a policeman enforcing the rules, but rather as the surrogate for the investors and creditors who had limited access to information about a company’s finances and operations. I knew that these nameless, faceless third parties trusted me and that no matter what, I could not break that trust, for it was the cornerstone of the profession.

“Moments of obligation” are those moments or events when you feel yourself pulled down a path that leads you to work that will benefit others. At various points in my career, I’ve made more conscious decisions about pursuing paths to give back to the community. Of course, thousands of CPAs make decisions every day to contribute their skills, experiences and—perhaps most importantly—their credibility to efforts aimed to benefit the public good.

Majority Don’t Expect to Retire at 65

A recent poll conducted by CPA Letter Daily asked the question, “Do you think you will continue to work past 65?”  Coincidentally, the number 65 came up again. 

• Yes – 64.8%
• No – 29.31%
• I don’t know – 5.89%

Approximately 65 percent of the respondents said they would be working beyond age 65.  Do that many people love what they do for a living or is there something else happening?

In the News: Private Company Standards are Coming

The big accounting news this week was the Financial Accounting Foundation’s Wednesday announcement that it was creating a body to set differences in U.S. generally accepted accounting principles, where appropriate, for privately held companies. The private company standards set by the new Private Company Council might make it easier for the roughly 28 million privately held companies in the United States to follow certain accounting standards.

The AICPA announced its support for the Private Company Council on Wednesday shortly after the news broke.

Barry Melancon, CPA, CGMA, president and CEO of the AICPA, spoke about the developments in a video to members.

“With the news announced today by the FAF, we recognize and appreciate that the FAF has taken solid steps in the right direction regarding the Private Company Council. The AICPA is encouraged by this approach and awaits more of the details of the FAF decision.  We look forward to continuing to work together to effect meaningful changes in U.S. GAAP for private companies and the users of their financial statements,” said Melancon,

Shine a Light on What Taxes You Pay

Every year, politicians, economists, tax practitioners and others talk about making changes to our federal and state tax systems. Some of the proposed changes are more fundamental – the adoption of a consumption tax, for example. Other proposals, on the other hand, call for varying degrees of modification to the existing system, such as adding or expanding tax incentives to encourage savings, modernizing the international tax rules, or making procedural changes to improve compliance.

In a presidential election year, and at a time when our country faces unprecedented levels of debt and extraordinary amounts of governmental-operating deficits, taxes will continue to be one of the most pressing issues for public discourse. Have you heard any of the candidates mention the “T” word lately? We all know, however, that talking about taxes in this environment takes a lot of political courage.

And The Survey Says... Increasing Demand for Forensic Accounting

Infographics may be the rage these days, but I still like good old-fashioned statistics, data points and most of all, survey results. Maybe it's because I spent a lot of time watching Family Feud as a child, but when I look at survey results the voice in my head announces ‘and the survey says…’

If 100 CPAs across the country were asked ‘what is the fastest growing area in accounting,’ it is highly likely that forensic accounting would be one of their top answers. Backing up what many in the profession have long suspected to be true are the latest results from the AICPA Forensic and Valuation Services Trend Survey: and the survey says that forensic accountants are seeing a noticeable increase in demand for their services.

Friends, Family and Finances

Relationships and finances can be very tricky; whether between parents and children, roommates or spouses. In fact, financial matters are the most common source of discord among American couples, prompting an average of three arguments per month, according to a survey conducted for the AICPA by Harris Interactive.

More than half of adults, 55 percent, who are married or living with a partner said they do not set aside time on a regular basis to talk about financial issues. This leaves them at a huge disadvantage. It’s important for all parties involved to be aware and understand where their money is going.

The Brand YOU: Your Bio

Personal branding is about promoting what makes you unique and what allows you to stand out from the crowd. A major piece of branding is creating your professional “bio” or biography. That bio is, after all, a specific place to capture your “story” …. so it is personal.  

For many CPAs, your bio is likely already on the web and accessible by anyone and anywhere. Since it is so accessible, it presents a nice branding opportunity – to spread your message about the value you provide and the opportunities you want to attract.

When reviewing your bio, consider three Cs of personal branding – Compelling, Consistent and Clear:

You Made It Through Another Tax Season: Now What?

Busy season is over; you made it! And while you may still have to file returns for those clients who needed extensions, you can at least stop sleeping in your office. So now what? Will you take a vacation? Catch up with those clients you had to put on hold? We asked CPA Letter Daily readers those same questions and here is what they had to say:

• 38.90% - Catch up on non-tax clients/services
• 23.01% - Sleep/relax
• 19.36% - Take a vacation
• 7.85% - Remind clients of year-round services and pursue new clients
• 6.76% - Attend a conference/catch up on CPE
• 4.11% - File amended returns

Technology Risks and Rewards: A Balancing Act

The AICPA has long recognized the impact that technology has on the accounting profession. In fact, for over two decades, we’ve been reaching out to members and key stakeholders to better understand how it can be effectively harnessed through our Top Technology Initiatives Survey.

Back in the early 1990s when the survey debuted, the technologies we take for granted today would have been impossible to fathom. In an era when only early adopters had digital answering machines, the idea of a personal computer, which could obtain almost any piece of information in the world was beyond most people’s comprehension. Now, we carry these devices around in our pockets, take pictures with them and call them phones.

3 Tips for Opening the Doors to Future Leaders

As we celebrate National Women’s History Month, CPAs can take pride in knowing that women have maintained a solid foothold in the profession since the early 1980s. Not only that, women have represented half of all accounting undergraduate and graduate students since the early 1990s. Men and women share credit for opening the doors of the profession to ensure that all top talent can enter and thrive. However, there is one place where the numbers are still skewed male: at the partner level in CPA firms. One goal of the AICPA Women’s Initiatives Executive Committee is to call attention to this issue and offer solutions to firms and professionals on why and how to drive change.

5 Essential CPA Exam Study Resources

During tax season, preparing for the CPA Exam can be even more challenging than usual. Here are a few resources for that will help CPA candidates with the preparation process.

• Uniform CPA Exam Candidate Bulletin:  Aside from being a great general resource for any CPA candidate, the Candidate Bulletin is especially useful when you’re getting close to your testing date.  A few days before taking the CPA Exam, be sure to review the section - Step 4: Take Your Examination – for information on the test center check-in process, ID requirements and time allocation. All it takes is a quick review to help you focus on actually taking the CPA Exam.

CPAs: Changes to Facebook Pages on March 30

Many of you have seen the update to the new Facebook Timeline format on your personal profile. Now, Facebook is rolling out those changes to business pages, as well. The updates take effect on March 30, so the time to start planning is now! Here are some ways the new layout will impact your business’s Facebook Page.

In the News: Optimism on U.S. Economy hits Post-Recession High

The Wall Street Journal’s CFO Report covered yesterday’s release of the AICPA’s Economic Outlook Survey results, noting that 14 percent of those surveyed plan to hire this quarter – up from 10 percent in Q4. The AICPA Economic Outlook Survey polls chief financial officers, controllers and other CPAs in executive and senior management roles about their thoughts involving the economy and their hiring plans in the next year. The Triangle Business Journal cited the rise of the CPA Outlook Index,  a composite of nine indicators, which measured a 69, a post-recession high (see the chart to the left) that matches the index score from the first quarter a year ago. The Raleigh News & Observer, noted that the CPA respondents’ views are seen as a leading economic indicator because they oversee corporate finances and help devise strategy. Carol Scott, CPA, CGMA, AICPA vice president for business, industry and government, was quoted by WRAL.com in their article on the survey. Scott said "optimists now outnumber pessimists on the U.S. economy by an almost 2-to-1 margin, which is a striking change from six months ago." The results of the survey will be discussed on a webcast 2012 Economy: Real Recovery or Roller Coaster Ride?, scheduled from 2:00 to 3:30 p.m. ET on March 22. The webcast has free CPE for the first 2,000 AICPA Members who register.