Proposed SOX 404(b) Changes Could Add to Investors’ Risks

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There has been quite a bit of legislative and regulatory activity over the past few months regarding Sarbanes-Oxley Section 404(b), which requires public companies to have an independent auditor attest to management’s assertions on internal controls over financial reporting. I want to bring you up to date on recent developments and the AICPA’s position on the issue.

Currently, an exemption exists for issuers with a public float of less than $75 million, a provision enacted as part of the 2010 Dodd-Frank Act. These smaller issuers were never required by the Securities and Exchange Commission to comply with Section 404(b) since enactment of SOX. However, legislative, regulatory, business and economic influences are combining to apply pressure to extend the exemption to larger public companies, believing it would reduce reporting burdens and spur job growth. The AICPA has consistently urged implementation of Section 404(b) for all publicly held companies. It has led to improved financial reporting and greater transparency, and the AICPA believes all investors in public companies should have equal benefit of the same protections.

The Watchful CPA: Risks of Theft and Fraud

Audit claims alleging failure to detect theft and fraud are not new.  However, their frequency and severity are increasing dramatically.  Between 2008 and 2010, the percentage of audit claims alleging failure to detect fraud and theft more than doubled, from 30 percent to nearly two-thirds of all audit claims.  Equally alarming, many claims arising from tax, bookkeeping, compilation and review engagements now include similar allegations.  By 2010, among all claims alleging failure to detect theft and fraud, 24 percent emanated from tax services, 17 percent from compilation and review services, 11 percent from accounting and other services, and 4 percent from investment advisory services. The remaining claims involved audits.

Use Video to Showcase Your Firm’s Personality

Lights. Camera. Snooze.

Video is a great medium for firms to educate and inform staff, clients and potential employees. But sometimes the content can be a little mundane. Why not take those formal interviews and how-to series to the next level?

Pull back the curtain and let people know what you are really like. 

Put a face to your firm. What are your employees passionate about? Is volunteerism important to you? Showcase your staff or fellow CPAs giving back to the community, like the Virginia Society of CPAs and the Illinois CPA Society did in their CPA Day of Service videos.

 

Majority Think it Is Harder to Get Ahead Economically

Polls in CPA Letter Daily offer an insight to our readers’ opinions about topics taking place in today’s world.

On Jan. 24, CPA Letter Daily published the survey results from The Hill Poll: Most voters say path to economic top is steeper. We decided to ask our readers to weigh in too. More than 2,500 readers responded: What do you think? Is it harder or easier to move from one economic class to another than it used to be?

• Much harder – 57.01%
• Somewhat harder – 25.89%
• Stayed about the same – 8.86%
• Somewhat easier – 3.75%
• Much easier – 2.38%
• Not sure – 2.11%

Live Blogging the CGMA Launch

AICPA Insights live blogged from the interactive business forum celebrating the launch of the Chartered Global Management Accountant on January 31. Follow the real-time event as it unfolded in New York and London and was viewed live in other regions around the world. A launch event in Kuala Lumpur took place earlier in the day. The CGMA was established through a joint venture between the AICPA and the Chartered Institute of Management Accountants.

Chair's Letter: Resources for a Successful Future

What’s your dream, your long-term professional goal, your plan for the future of your career? I ask because whatever your answer, I’m pretty sure the AICPA has resources that can help you meet that goal. I’ll tell you about my own experience.

After spending many years at a large national accounting firm, I joined with two other partners nine years ago to follow my dream and launch my own firm. Today, we have three offices and 100 people. How were we able to grow so quickly into the kind of firm we dreamed of being? I have to give some of the credit to the AICPA Private Companies Practice Section. PCPS serves in a combination of roles, providing tools, publications and resources created especially for small and medium-sized firms. It also acts as an advocate on behalf of our interests, speaking out on issues that affect us and our clients.

In the News: Saving Money is Top New Year’s Resolution

Hello and Happy New Year to my Insightful readers! I hope the holiday season was full of joy and left you rested, relaxed and most importantly, ready to tackle the year ahead.

The AICPA will be launching a number of exciting initiatives this year and I’m looking forward to getting the news out and continuing to share interesting articles about the profession that you may not have caught. As always, if you happen to see something that makes you stop and say ‘this is important news CPAs should really be aware of it’ – please send it my way and I’ll consider it for inclusion.

Every January many Americans resolve to make beneficial changes to their life. They may decide to start exercising, to spend more quality time with family and friends or to, finally once and for all, get organized. A recent survey conducted by the AICPA and Ad Council has found that, for young adults, saving money in 2012 is at the top of their priority list. The survey was released to coincide with the launch of a new PSA on behalf of the national Feed the Pig financial literacy campaign, which helps 25- to 34-year-olds take control of their finances and make saving a priority. 

CPA Firms are at a Crossroads - 2012 and Beyond

As I travel the country meeting with small firm owners, I am finding that most have weathered the recession. Most firms report flat revenue or very moderate growth (1-3%). Firms have done a good job sharpening the pencil and controlling expenses effectively, and this has enabled them to keep their bottom lines respectable. They are running lean and mean today; but what about tomorrow? 

New Estate Planning Guidance for Decedents Who Passed in 2010

Notice 2011-66 provides guidance for executors of estates of decedents who died in 2010 regarding the time and manner of choosing to opt out of the estate tax have the carryover basis rules apply. Revenue Procedure 2011-41 provides safe harbor guidance regarding property acquired from estates of decedents who died in 2010. This audio stream provides an overview of the guidance and strategies to assist advisers and clients in making decisions.

New Estate Planning Guidance for Decedents Who Passed in 2010

If you prefer, you can read the entire transcript after the jump or download this and other audio webcasts from the Personal Financial Planning Section on AICPA.org.

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. 

Impact of the Debt Ceiling Fallout

Have your clients been asking you tough questions about the current U.S. fiscal situation in this time of uncertainty? "Should I change my asset allocation? Should I put money in gold? Should I get out of the stock market as a whole?"  This audio stream provides an overview of where the U.S. is right now from a market, economic and fiscal standpoint and also suggests various tax-motivated strategies that you might want to pursue with your clients. Note: This was recorded prior to Standard & Poor’s lowering of the U.S. credit rating.

Debt Ceiling Fallout

If you prefer, you can read the entire transcript after the jump or download this and other audio webcasts from the Personal Financial Planning Section on AICPA.org.

Michael Goodman, CPA/PFS, President, Wealthstream Advisors Inc. Michael is highly active in the financial community and serves on the Personal Financial Planning Executive Committee and as the 2009 PFP Conference Chair. He earned a B.S. in Business Administration and a B.A. in Communication from State University of New York, as well as a Certificate in Finance & Management Information Systems. Michael co-founded and serves on the board of directors of Commerce Plaza Inc., a non-profit program which teaches financial skills to children at the elementary school level.

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. 

Blogging: How to Conquer Writer’s Block

Or is it "blogger’s block?" Hmm…I digress.

Has this happened to you?
As I sat at my computer pondering a topic for my blog post, my mind was both blank and full at the same time. There are so many topics to choose from, how can I narrow it down to just one? That’s when it hit me like a bolt of lightning…how about a post about writer’s block? Funny how that works.

I hear it often from AICPA members…they know that blogging is a valuable resource, but they aren’t sure where to start. “What do I write about?” “How will I come up with enough content to write a blog consistently?” Here are a few ideas to help you keep the ideas flowing:

Scan your inbox. Chances are people come to you for answers to questions. Scan your inbox and see if there are any common questions you could answer in a blog post.

Read, read, read. Books, news, Tweets, other blogs and trade publications can be a great source for blog post topics. Share an article and give your impression of what you read (be sure to link back and cite the original source).

6 SEO Tips for CPAs

Last month we talked about getting started in search engine optimization (SEO) and the importance of having the right tools at your fingertips for SEO. This month I want to focus on six specific tips that you can do right now to increase the ranking of your website in search engine result pages (SERPs). Any one of these tips could be a post on its own, so I’ll stick to a high-level summary.  If you have any specific questions, feel free to ask them in the comments or email me directly. Some of these tips may require a technical solution, so be sure to consult with your webmaster before making any changes if you’re not comfortable doing them yourself.

In the News: AICPA Provides Minority Accounting Scholarships, IFRS Decision Delayed

Deanna White of AccountingWEB recently spoke to Theresa Yeboah, a Georgia State University student who was awarded the scholarship three consecutive years, about the impact the AICPA’s Minority Accounting Scholarship has had on her education, as well as her plans for the future. "I have benefited tremendously from the scholarship," said Yeboah. "The scholarship helped me to pay for school and my expenses so I did not have to work so much and could focus my attention on my studies and activities, like Beta Alpha Psi. It gave me more time to devote to my dream of becoming a CPA."  This fall, Yeboah was one of 78accounting students from 36 states across the country awarded the AICPA Scholarship for Minority Students. Recipients are selected based on academic achievement, a demonstration of leadership and volunteerism, and an overall commitment to becoming a CPA. The 2012-13 Minority Scholarship application deadline is April 1, 2012.

 

12 Things You Need to Know About Gregory J. Anton, CPA

We asked the new Chairman of the Board of Directors for the AICPA, Gregory J. Anton, CPA, twelve light-hearted questions. These are just for fun and to gain some insight to what makes him tick.

HOTI: Carrier IQ; 12 Days of Christmas Gets Expensive

We asked our bloggers to tell us what they found interesting on the Internet this week. What would you add to this list?

Heidi Brundage, CPA - I found the Gen X & Gen Y Insurance Resource Center to be fascinating! Long-term disability has always been such a mystery to me because I’d never imagine myself becoming disabled. This website breaks down the issues, questions and solutions into organized and understandable chunks and they relate directly to me! I’m really impressed (and enlightened).

Jina Etienne, CPA - I re-tweeted this post from the Colorado Society of CPAs, it generated a lot of interest and comments. “So... what's so great about being a CPA? 5 reasons here.” I even got a response from a former client whom I had recommended get her CPA. She’s finishing up school now and will take the CPA Exam next winter!

Technology is Now Part of the CPA Base

I recently had the privilege to serve on the CPA Horizons 2025 Advisory Panel.  As part of the panel we were asked to review and comment on the research conducted to update the CPA Vision Project, completed in the late 1990s, to position the CPA profession for success through 2025. One of the key findings was that technology is no longer a CPA Core Competency.  Your reaction may be like mine, “WHAT??!!?”  However, as I read on, it became very clear that technology is no longer a Core Competency (a differentiator) for CPAs.  Rather it is a part of our base--it is a tool that we must leverage as part of the way that we work on a day-to-day basis—and no longer something separate that was only the domain of a specialist. 

CPA Horizons 2025: A Roadmap for the Profession’s Future

During this past year, the AICPA’s Immediate Past Chairman, Paul Stahlin led the call for our members to participate in CPA Horizons 2025, a grass-roots initiative aimed at examining the local and global trends that will have an effect on our profession over the next 15 years. Your response was tremendous. Nearly 6,000 CPAs voiced their opinions and generated more than 75,000 comments. I thank you for all your insights on how to shape our future.

CPA Horizons 2025 built on the knowledge we gained in the CPA Vision Project, a similar effort conducted in the late 1990s. Participants concluded that the core purpose for CPAs identified back in the 1990s—CPAs: Making sense of a changing and complex world—remains relevant now and for the future. The participants also believed that the core values and competencies identified in the CPA Vision Project are still valid, and were updated to reflect changing circumstances. While the CPA Vision Project also identified some core services, CPA Horizons 2025 determined that the knowledge, skill and competencies CPAs have to offer have become so varied and diverse that the concept of core services is no longer valid. 

Critical Issues to Consider: Estate Planning Filings

The final Form 706 and instructions were issued early September by the Internal Revenue Service for decedents who died in 2010. For most people who died in 2010, the form and estate tax payment were due Sept. 19. The AICPA requested a 90-day postponement of the due date, and on Sept. 12 the IRS announced filing and penalty relief for 2010 estates. In light of recent estate tax developments, listen to Bob Keebler’s thoughts on critical issues to think through for 2010 and 2011 estate planning and filings. 

Recent Estate Tax Developments

If you prefer, you can read the entire transcript after the jump or download this and other audio webcasts from the Personal Financial Planning Section on AICPA.org.

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. 

The Basics of SEO for CPAs

The World Wide Web has been around for 20 years now and has fueled a number of new careers, from Internet marketer to YouTube sensation. One such new career is specializing in search engine optimization. SEO is the science of getting a website or page a better ranking on search engine result pages (SERP). With more than 130 million domain names worldwide and a countless number of web pages, competing for a top spot on a SERP can be a daunting task.

It’s not as easy as building the “Field of Dreams” of websites. Just because you build one doesn’t mean visitors will come. One has to promote that website and you will compete with other similar sites for positioning whether it’s to just land on the first SERP or the first site listed. Additionally, SEO rules are constantly changing to keep up with search engine algorithms (which are, of course, secret).

The first step is getting your website to show up in SERPs, we’ll tackle how to get your website a better ranking in a future post.

Social Media and Job Seekers

Dear Smarty Pants, Braggarts and Potty-Mouths… A word to the wise: you never know who is listening.

I am often taken aback by the things I see people posting on social media. I understand the need to vent or an attempt to be funny, but what you put out there in the public domain could be costing you your career. In a recent survey, 95% of employers said they use social media to screen potential employees. Yes, 95%! Yikes. From inappropriate photos and comments about previous employers to proof an applicant was less than truthful about qualifications… employers are getting an eye full!

Still Not Convinced Accounting is the Way to Go?

Last week, in his Nov. 2 CPA Success blog post, How to choose a major: Step 1 -- pick accounting. QED, Bill Sheridan, CAE, electronic communications manager and editor at the Maryland Association of CPAs, affirmed that careers in accounting continue to buck trends and supply solid careers for young professionals. Sheridan said, “If you want a job in a profitable industry, study to become a CPA.” He went on to cite the latest data from Sageworks and the Bureau of Labor Statistics, which supports his point: the accounting profession is still sporting huge successes. It is expected to see further growth over the next six to seven years.

Top 10 CPA Resources on AICPA.org

I spend quite a bit of time wading through various analytic and metric reports, whether it’s examining open rates for our newsletters or retweets on Twitter. I find data fascinating and it can speak volumes about what interests users and helps drive future content. So I took a look at the work our Web team does and determined the 10 most downloaded CPA resources on AICPA.org. They are listed after the jump starting with the most visited.

Congress is Keen on XBRL

AICPA staff members are very busy keeping up with activity related to eXtensible Business Reporting Language in the U.S. Congress.  Earlier this month House Ways and Means Human Resources Subcommittee Chairman Geoff Davis (R-KY) and Ranking Member Lloyd Doggett (D-TX) introduced H.R. 3339, the Standard Data and Technology Advancement Act, or the “Standard DATA Act.” The bill aims to establish consistent requirements for the electronic content and format of data used in the administration of key human services programs. Specifically, it calls for the incorporation of existing nonproprietary standards, such as XBRL.

If enacted, this bill would improve the collection and dissemination process for the federal government by standardizing data and eliminating time-consuming and error-prone manual processes. 

Email Still Rules the Workplace

Polls in CPA Letter Daily offer an insight to readers’ opinions about trends and developments in today’s business environment.

Here is last week’s poll question and a breakdown of the nearly 1,500 responses it generated: Email used to be the standard for quick and informal exchanges with colleagues. But in many offices, texting and instant messaging are taking over. Which tool do you prefer for communicating with co-workers?

• Email on computer – 67.9%
• Phone call – 14.97%
• Instant message – 12%
• Text message – 2.7%
• Email on smartphone – 2.43%

Honestly, it’s no surprise that a vast majority of readers still rely on “traditional” email. While there are certainly other methods of communicating in the workplace, none of them appear to be as popular. Most likely because they are not all an effective means of communication. That’s not to say that each method doesn’t have its advantages.

Chair's Letter: Overcoming Challenges

Welcome to my first blog post as the new AICPA Chairman of the Board of Directors. I am honored to serve you and our wonderful profession during the next year and hope to meet many of you as I travel around the country.

It’s a great privilege to take on the role of chairman in the year the AICPA celebrates its 125^th anniversary in 2012. A source of pride for all of us, this milestone signifies both the historic and contemporary importance and relevance of our profession, and its staying power as a career.

In the News: US and HK sign MRA, Other CPA News

The Knoxville Daily Sun reported that the United States and Hong Kong have signed a five-year mutual recognition agreement establishing reciprocity between CPAs in the U.S. and Hong Kong. The agreement was signed at NASBA's 104th Annual Meeting in Nashville. "This new agreement will allow qualified accountants in the U.S. and Hong Kong to work across borders," said Barry Melancon, CPA, AICPA president and CEO. "Globalization is rapidly changing the way business is done across the globe and CPAs will continue to play a vital role in the financial systems in the U.S. and abroad." Mutual Recognition Agreements facilitate the process for qualified professionals with accounting credentials to become certified and licensed in each other's countries. The agreements are subject to individual state board of accountancy acceptance.

The Sustainability Commodity

When I saw Sunday’s New York Times article on eco-concierges—consultants who advise consumers on how to make their homes and lifestyle more environmentally-friendly—I did a double take. At a time when so many consumers are facing economic uncertainty, how can anyone afford to pay someone to tell them which recycled paper towels to buy? As it turns out, there’s more to it than that.

Consumers are not only looking for guidance on how to be more environmentally conscious, they are also looking at many products that provide cost savings, whether immediately upon purchase (cheaper, chemical-free cleaning supplies, for instance), or over the long haul (like investing in more energy-efficient appliances or vehicles). The subtext here is that consumers are increasingly concerned about the part they play in the environment, and are making affordable purchases accordingly. At the same time, they are holding businesses, services and governments accountable for the part they play in the environment as well.

Groupon's IPO; Siri Talks Back; Facebook vs LinkedIn

We asked our bloggers to tell us what they found interesting on the Internet this week. What would you add to this list?

Heidi Brundage, CPA, SPHR - I had the pleasure of opening the North Carolina Association of CPAs first ever Professional Women’s Conference on Wednesday. More than 200 women were in attendance; it was a day of awareness, networking and encouragement! This post from the Harvard Business Review reminds me that we have so much work to do to bring awareness to the lack of advancement of female CPAs.

Stacie Saunders - On Thursday, Facebook announced it has teamed up with the U.S. Department of Labor and three employment-related agencies in an attempt to decrease the country’s unemployment rate using social media — a project that may eventually include a Facebook jobs posting system. What does this mean for LinkedIn? We will have to wait and see!

James Schiavone - The iPhone 4S wasn't the announcement many Apple fans were expecting, but it did come with one surprise, Siri. The personal assistant, called Siri, makes life easier with reduced typing and heightened potential for your most meaningful exchange of the day to be with your iPhone. I thought I was all cutting edge using my Android to talk-to-text, but apparently I can be edgier and get useful answers to real life questions spoken back to me. Siri is still in beta and promises to become even more advanced in future versions, but folks are having a lot of fun testing it out.

Gregory J. Wright, MBA - Groupon finally filed for its IPO this morning, but is only seeking a valuation of $11.4 billion, less than half the $25 billion it sought earlier this year before their accounting was called into question.

 

Reflections on the AICPA’s Leadership Academy

Last week, I had the pleasure of attending the AICPA’s Leadership Academy—as a member of its third class—in Durham, NC. I was among 33 participants under the age of 36. The Academy started off like many seminars do in this mobile age, with participants glued to our smartphones and somewhat disconnected from our surroundings. But that disconnection would be short-lived.

The mood transitioned quickly to one of collaboration and engagement as the instructors—Gretchen Pisano, president Sounding Board Ink, LLC, Tom Hood, CPA, executive director and CEO of the Maryland Association of CPAs and Jeannie Patton, AICPA vice president - students, academics & membership—began the Insight to Action process. We broke up into three groups to tackle three challenging real-life scenarios in business, non-profit and personal relationships. These tasks forced us to focus on the strengths of our characters, utilizing the i2A Strength Based Leadership program that we had been introduced to during our preconference workshops. The program coaches participants for leadership, teaching them self-awareness techniques, how to work from a source of natural strength and how to inspire their team to do the same.

Never a Dull Day for CPAs

CPAs often are seen as numbers magicians.

And we are. But we’re also detectives, counselors and guides. I work with CPAs in forensics and they see a bit of everything as they work with clients to uncover financial malfeasance, arbitrate divorces and much more. I received this story from a member just the other day:

So, funniest story that comes to mind is when I picked up two different divorce cases at roughly the same time in which I was the neutral arbitrator.  After several meetings in each of the cases I figured out that the wife in one of the cases was leaving her husband to start a relationship with the husband in the other case.  Long story short, I had to put my office on alert regarding scheduling so they did not end up in back-to-back meeting slots!

Stories like these really underscore the diversity of the CPA profession – and illustrate the immense opportunity available to CPAs. It’s one of the reasons we’re seeing rapid growth in our fraud and forensics section and why being a CPA is many things, but never boring.

What’s most rewarding to you about being a CPA?

Elaine Leggett, CPA/CFF, Technical Manager - Forensic and Valuation Services, American Institute of CPAs. Most of Elaine’s career has been spent in public accounting.  Prior to joining the AICPA, Elaine was the controller/firm administrator of a local CPA firm.  In addition, Elaine spent eight years at a large local firm, working with clients from a broad range of industries, including construction, nonprofits, insurance and healthcare, on tax, audit and consulting engagements.

CPA Day of Service, Estate Tax, Debit Card Fees

We asked our bloggers to tell us what they found interesting on the Internet this week. What would you add to this list?

Stacie Saunders - The Virginia State Society of CPAs shared this video on the AICPA Facebook page. It highlights how some of their members contributed to the 2011 CPA Day of Service. Great work!

Eileen Reichenberg Sherr, CPA, MST - The IRS announced in IR- 2011-97 that estates of people who died in 2011 need to file estate tax returns to benefit from the new portability rules even if they do not otherwise need to file an estate tax return. Since the estate tax return is due nine months after death, it could be due as early as Oct. 3, but a six month extension can be filed to give the estate more time to consider this option.

Gregory J. Wright, MBA - In a move that surprised many, Bank of America stated it was going to roll out a debit card fee plan that would charge customers $5 per month if they wished to pay for purchases using their debit card. After criticism from the public, Bank of America went on the defensive, stating “…we lost lots of revenues and these fees only partially make them up.” Bank of America lost $2.2 billion in 2010 and recently posted an $8.8 billion loss for Q2 2011.

We’d be remiss this week if we did not mention the passing of Steve Jobs as the biggest news item of the week. His innovation and leadership changed the face of technology as we know it. We leave you with this quote, which we feel summarizes his legacy well. This is from his commencement speech at Stanford University, June 2005.

"[Y]ou can't connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something -- your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life."

 

Social Media and Financial Planners, Emoticons Age

We asked our bloggers to tell us what they found interesting on the Internet this week. What would you add to this list?

 

Jonathan B. Cox - This Wall Street Journal story is about how financial planners are harnessing the power of social media. Financial planners are using social media to deepen relationships with existing clients and find new ones. There are lots of creative, real-life examples of how social media is paying off.

 

 

 

Stacie Saunders - Monday was the 29th birthday of the emoticon. This is an interesting look  back  at how we began to inject emotion into our online communications. Honestly, I was surprised the colon-hyphen-parenthesis :-) was introduced as far back as 1982…and even more surprised that the concept can be dated back to 1881! This fun, short read will help you turn that Friday :-( upside down!

 

 

James Schiavone – Towson University returned football tickets allotted by the  University of  Maryland for their matchup on Oct. 1 and instead told their fans to buy tickets on StubHub. Due to  a large concentration of available tickets for the game, tickets were selling for as little as $4 (face value is $38). This is a great example of how secondary markets and daily deal sites are becoming more popular and allowing one to determine their own “fair value” for a product. I’m less likely to pay $50 for food if I can get the same $50 of food for $25 through a secondary market.

 

Gregory J. Wright – Netflix announced it will spin off its DVD rental service to a new company  called Qwikster in the 10th paragraph of their CEO’s blog post, after customer outrage in July over price increases. Their stock immediately took a tumble and is 42% lower than it was in July.

CPAs: Showcase your Volunteerism with LinkedIn

CPAs are passionate about giving back and lending their expertise through volunteer work. But how many of your peers, coworkers or clients know about your volunteerism or the causes you support? There was no area to feature these accomplishments on LinkedIn…until now!

Highlight your Passions

In early September, LinkedIn launched a new feature allowing users to add volunteer positions, causes they care about and organizations they support. It’s simple to use. Here’s how:

CPAs to the Rescue

 As Hurricane Irene spun her way up the East Coast, the spotlight brightened on disaster planning.

And on CPAs.

CPAs have long been leaders on emergency preparation. Members of the AICPA’s Personal Financial Planning section a few years ago partnered with the American Red Cross and the National Endowment for Financial Education to produce guides to help consumers prepare for and recover from disasters. You can see the expertise included in these guides and the insight of our members on display throughout the media when natural disasters occur.

In the aftermath of Hurricane Irene, for instance, CPA financial planners Michael Eisenberg and Mitchell Freedman were quoted in this Wall Street Journal story: Insurance, Records Are Key In Storm's Wake.  Eric Rigby, a CPA financial planner in New Orleans, was interviewed live on the Weather Channel about disaster preparation.

The PCPS Section today is hosting a webinar, “Disaster Losses: From Start to Finish,” to empower AICPA members with information to help clients during a disaster. Louisiana practitioner Jerry Schreiber, who has presented numerous seminars on disaster loss, will cover topics including:

• The emotional toll on clients
• Accumulating the information to document a loss
• Reporting the loss on the tax return.

The free webinar will take place from 2:00 p.m. to 3:30 p.m. EDT today. Be sure to register and reserve your space.

Be sure to check out other disaster planning and recovery resources available from the AICPA, including the Financial Reporting Center and guides and checklists from 360 Degrees of Financial Literacy. It is powerful information that you can use with clients or in your communities to demonstrate the value that CPAs deliver every day.

Andrea Millar, CPA/PFS, Sr Technical Manager - PFP, American Institute of CPAs. Andrea leads the AICPA Personal Financial Division. Her responsibilities include working with the PFP Executive and PFS Credential committees to drive the advocacy, education and other initiatives on behalf of the 7,500 AICPA members who specialize in providing estate, retirement, tax, investment and insurance advice to their individual clients.

In the News: Dividends, PCGAAP, Deductible Loss

Multiple news outlets, including Tax-News.com and Accounting Today covered the news that more than 2,600 letters have been written to the Financial Accounting Foundation demanding differential financial reporting standards for private companies and a separate independent board to oversee those standards. “Ninety nine percent of the letters from the privately held company constituency demanded that the FAF create differential standards for privately-held companies,” said Barry Melancon, CPA, AICPA president and CEO.

Paul Stahlin, CPA, AICPA chairman, said “now is the time for the FAF to take the bold step of creating a separate board to set relevant standards that privately-held companies sorely need. We call upon more CPAs and business leaders within the privately-held company constituency to push the FAF to make these changes.” The AICPA developed a letter writing tool to help members write letters to the FAF in support of a private company board.

Succession: It’s Not Only About The Golden Years

Polls in CPA Letter Daily offer an insight to the readers’ opinions about topics taking place in today’s world.

Last week’s poll question, with nearly 500 responses: Does your organization have a formal succession plan in place?

• Yes, my organization has a formal succession plan in place. - 23.71%
• Yes, but it is an informal succession plan. - 21.99%
• No, but my organization plans to develop one. - 18.93%
• No, and we do not have plans to create one.- 35.37%

There’s a saying that the best time to plant a tree is twenty years ago. The second best time is now.

For many years, the AICPA has been encouraging firms of all sizes to take a serious approach to and place a heavy focus on succession planning.  With 44,000 firms in the U.S., combined with an aging population, it’s simply an imperative. I’ve seen many firms that are so busy taking care of “today” that they never get around to planning for tomorrow.

Image via Wikipedia

Recently, Apple demonstrated the importance of having a succession plan when CEO Steve Jobs stepped down, amid health concerns. His sudden announcement triggered a plan that was put in place well before his health forced him to step down. This preparation allowed Apple to seamlessly transition to new leadership and continued success. This plan was well communicated to employees and investors for months, reducing the potential for negative reactions. Examples like this, unfortunately, are the exception, rather than the rule.

In the last month, another event led me to believe that awareness regarding succession planning is both timely and needed, especially in the case of an unexpected life event.   

In the News: Hurricane Irene, Cloud Computing

As Topical Storm Irene left a trail of devastation in its wake, initial estimates of damages were in the billions. For individuals struggling to put the pieces of their life together, the aftermath can be extremely difficult to navigate. Michael Eisenberg, CPA/PFS, told MarketWatch that gathering the facts and carefully evaluating contractors was the prudent approach. “As much as somebody wants to jump in and do something now, you need to step back a little bit, take a breath, get your wits about you before you start making decisions,” said Eisenberg. Mitchell Freedman, CPA/PFS, advised readers that in the article if their house is unlivable, they need to find out whether their insurance policy covers the expense of a hotel or rental apartment.

In related news, the AICPA wrote a letter to the IRS asking them to extend the Sept. 15 filing deadline for business tax returns for tax payers and preparers in areas impacted by Hurricane Irene. Mike Cohn of Accounting Today reports that the AICPA asked the IRS to use its administrative authority to grant at least a two-week extension of the deadline for those in the areas affected by the hurricane. Patricia Thompson, CPA, chair of the AICPA’s Tax Executive Committee, also asked that any relief apply to situations in which the taxpayer, tax return preparer or the records are located in areas ravaged by the hurricane. The Tax Adviser reports that the IRS announced September 1 that taxpayers in certain areas affected by Hurricane Irene have until October 31 to file certain returns and make payments normally due before then. The areas eligible for relief include parts of North Carolina, New Jersey, New York, and Puerto Rico; the IRS expects to provide similar relief to other places affected by the hurricane, such as Vermont

As many business are considering transitioning to cloud computing, a CFO.com article tackles the not-so-simple question of what it means to ‘move to the cloud.’ As CPA firms who have adopted the cloud model likely know, there are a number of different options for companies looking to make the switch. In the article, Timothy Chou provides real life examples and breaks down six distinct different ways to make the move.

Going Concern recently covered the AICPA’s announcement of the second annual accounting case competition. The article notes that the contest asks college students to flex their fraud and forensic skills in advising a fictional client on a major overseas expansion. “The competition is an opportunity for students to get a hands-on, real-life understanding of one of the fastest-growing interest areas in accounting: fraud and forensics,” said Jeannie Patton, AICPA vice president for students, academics and membership. The top three teams will strut their stuff in Washington D.C. and the one that does the best job keeping the project on track — and on the right side of the law — gets $10,000.

If you come across a recent article of note about the profession, please let me know in the comments section or send me an email.

James Schiavone, AICPA Staff.

Importance of Management Accountants

The impact of regional economies over global financial markets is intense. This past month was particularly tumultuous as investors reacted to current events and economic conditions in Europe, Asia and the U.S. The rocky ride has organizations struggling to maintain the inroads they’ve made over the last two years. Corporations must navigate the risks and opportunities to move forward. That’s why I think there is great potential for management accountants to lead businesses toward success in the future.

What makes me so optimistic? Because the skill sets of management accountants have never been more appropriate for business success. In addition to solid accounting fundamentals, management accountants’ competencies in monitoring, assessing and forecasting performance; helping colleagues understand income and costs; and assisting management in making tough decisions are critical for organizations to move in the right strategic direction.

The AICPA and the Chartered Institute of Management Accountants are preparing for the early 2012 launch of the Chartered Global Management Accountant designation. The CGMA will showcase the management accounting expertise of qualified AICPA voting members, and open up an international community of colleagues for sharing ideas and gaining knowledge. The targeted resources and continuous learning opportunities that the AICPA and CIMA are preparing will enhance CGMA holders’ business acumen and help them bring long term value to their organizations. I am excited to be a part of this effort to establish what will be a gold standard for management accountants worldwide. If you want to learn more about what the CGMA, visit the CGMA website.

Carol Scott, CPA, Vice President - Business, Industry and Government, American Institute of CPAs.

Thinking Globally Makes a World of Difference

The world is getting smaller. It becomes more apparent with each passing day. The ongoing unrest in Libya, the economic crisis in Greece, and our own difficulties with the debt ceiling have each caused global markets to fluctuate wildly. What does this tell us? For one, it makes it increasingly clear the business world is now global.  Second, it shows that most U.S. businesses need to think internationally and integrate that thinking throughout their operations to achieve economic success and long-term viability.

Businesses used to operate within their own cocoon, impervious to events outside their countries’ borders. But now, each of us must implement strategies enterprise-wide that reflect the new environment.   

LinkedIn Backs off Social Ads and Improves Mobile App

Thrust into the spotlight

Until recently, LinkedIn has managed to stay out of the spotlight when it comes to privacy. In June, however, LinkedIn decided to opt in millions of users to a privacy setting, allowing their names and pictures to be used in social advertisements. Social advertisements often include names and/or pictures of people you are connected to who recommend the product or service.  It went relatively unnoticed for weeks…and then the firestorm. In early August, the blogosphere and news websites lit up with the information. LinkedIn users were not happy.

S&P Downgrade Signals Significant Change is Needed

Image by Getty Images via @daylife

Polls in CPA Letter Daily offer an insight to the readers’ opinions about topics taking place in today’s world.

Last week’s poll question, with nearly 1,300 responses: Do you believe S&P's downgrade of the U.S. credit rating will affect your organization or your client's company?

• Yes, very much – 9.47%
• Yes, but not too much – 29.89%
• Not at all – 50.08%
• Unsure – 10.56%

It’s no surprise that a majority of respondents don’t feel the S&P downgrade of the U.S. credit rating will affect their organization or client’s company. In fact, little effect has been felt from the downgrade overall, other than the stock market’s trip to a theme park a couple weeks ago to ride the roller-coasters. To understand what, if any, the downgrade will have on the CPA profession and the U.S. overall, I sat down with a couple economists and picked their brain. See what they had to say after the jump.

In the News: Auditor Term Limits, IFRS, Technology

Jesse Hamilton of Bloomberg reports that the Public Company Accounting Oversight Board voted 5-0 earlier this week to open a public comment period on the idea of establishing term limits for auditors. Proponents said such restrictions may eliminate inappropriate company influence on long-term auditors. The board’s “concept release” would limit the number of consecutive years that an auditor could work for a client. It would combat “the pressure auditors face to develop and protect long-term client relationships to the detriment of investors,” PCAOB Chairman James Doty said. However, the board said it’s open to alternative ideas that would foster auditor independence, as board members expressed reservations. “I have serious doubts that mandatory rotation is a practical or cost-effective way of strengthening independence,” board member Daniel L. Goelzer said.  

3 Tips on Effective Writing

Edward Everett could have been famous.

He gave the official address back in 1863 at the dedication of the National Cemetery in Gettysburg, Pennsylvania.  It was 13,000+ words and lasted more than two hours.  

By contrast, Abraham Lincoln’s speech was about 200 words and lasted 2 minutes.

Which did history remember?

I used this example during a presentation last week on effective written communication at the E.D.G.E. conference in New Orleans. Too often in business we end up communicating like Everett. Here are three tips — I call them the 3Cs of communication — to make us more like Lincoln.

Diverse Faces Reflected in Your Organization’s Future

The year is 2020. The global economy has rebounded, the U.S. is celebrating less than five percent unemployment and the CPA profession is experiencing record growth. Your organization is doing particularly well and what’s more, your staff, senior leadership and partners’ ability to connect with a diverse clientele is the talk of the profession. Clients include a biotech start-up seeking to cure spinal cord injuries; a women-owned IT consulting company; a Kenya-based manufacturing firm; a law firm specializing in same-sex marriage and estate planning issues; and a car dealership owned by a Native American father/son team.

What led you to the success you’re experiencing? You cultivated your diverse team of talented staff using inclusive leadership. But, what is inclusive leadership?

Put Down the Smartphone and Take a Vacation, Please

Polls in CPA Letter Daily offer an insight to the readers’ opinions about topics taking place in today’s world.

Last week’s poll question, nearly 1,900 responses: When on vacation, how easy is it for you to disconnect from work? 

• I check my smartphone occasionally while on vacation to keep inbox volume down. – 49.9%
• I respond only to work emergencies while on vacation. – 24.6%
• I leave my work smartphone at home, or travel where I don't have service. – 11.56%
• I bring my work smartphone with me on vacation, but rarely check it. – 8.33%
• I'm on my smartphone, working constantly, while on vacation. – 5.61%

In the News: Financial Literacy, Mortgage Interest

Jimmy Williamson, CPA, and member of the AICPA’s financial literacy commission spoke to the Contra Costa Times for an article about the Consumer Financial Protection Bureau. The CFPB, designed as a one-stop place for consumers to file complaints about financial products, is currently only handling credit card complaints. “Like any new federal agency it takes time for it to get its wheels rolling," said Williamson. “It's designed to help consumers make better financial decisions, if they are borrowing money for a home, if they are getting a credit card, those kinds of things. It's designed to improve transparency.”

In the News: Debt-Ceiling, College Tuition, EDGE

This week’s post comes from Palm Beach, Florida, where I’ve been attending  the AICPA & CPA/SEA Interchange 2011 conference the past few days. It’s been a great experience learning about the issues impacting the profession, including informative forward-looking presentations from Barry Melancon, CPA, president and CEO of the AICPA and Paul Stahlin, CPA, AICPA chairman. It was wonderful to have the opportunity to meet so many of my colleagues from the state CPA societies around the country and learn about the projects they’ve been working on.

Now, on to the news.

QR Codes 101

QR codes, or quick response codes, are popping up everywhere. You may have seen them at conferences, in catalogs, on billboards and even in the Journal of Accountancy. What are they and how can you take advantage of this growing trend?

Let’s start with the basics.

A QR code is a two-dimensional code that can be read with an application on your mobile device. They are used to drive users to digital information, such as websites, Facebook pages or registration links. It is as simple as a click of a button!

If I see a QR code, what do I do with it?

In the News: IRS Tax Preparer Exam, Same-Sex Filings

Accounting Today reports that the AICPA wrote to the IRS offering to help develop the IRS exam for registered tax return preparers by leveraging the AICPA’ s experience with the Uniform CPA Exam. AICPA Tax Executive Committee Chair Patricia Thompson wrote “we believe the examination should address problems faced by tax return preparers that might arise in the preparation of basic Form 1040 returns, including coverage of basic self-employment income.” Thompson noted that the IRS exam should have questions related to ethical responsibilities of tax return preparers and be updated annually to reflect the most current tax laws and regulations.