How a CPA can help KonMari your finances

Anyone else feel a tad bit inadequate after watching “Tidying Up with Marie Kondo” on Netflix? If you haven’t heard of the series, during each episode, organizing expert Marie Kondo helps clients clear out clutter in their lives with her KonMari method. Before watching I thought I was a relatively neat person, but now I have a tiny voice in my head yelling, “WOW, STAND THAT UP VERTICALLY, YOU SLOB,” every time I put away laundry.

But enough about me. Let’s talk about how we can apply some of Kondo’s tactics to another aspect of life that may need some work: money.

6 funny TV shows that do taxes better than you do

There are 77 days between the start of busy season and the April 15 deadline this year. That’s an uncomfortably long — or as some would suggest, uncomfortably short — amount of time for taxes.

It just so happens that 77 days is also the total amount of time the average American adult spends watching television every year. If you’re a tax practitioner, you’re probably not getting a lot of those days in right now.

During busy season, you have a limited number of hours to watch the best programming available. You need to be sure you’re taking advantage of the precious free time you have and getting only the good stuff.

IRS transcript changes: What to do now that busy season’s here

Busy season is here.

If you’re a tax practitioner, you’re no doubt gearing up for what lies ahead. A big part of busy season prep is making sense of the recent changes to IRS transcripts and the resulting steep transcript learning curve. You may be wondering if you can still get the information you need to serve your clients.

While complex, cumbersome and somewhat confusing, transcripts are incredibly helpful. Authorized tax practitioners can assess a taxpayer’s overall standing with the IRS by reviewing one or a combination of four types of transcripts: tax return, tax account, record of account, and wage and income.

How workplace trends are affecting small businesses

It’s widely known that finding top-tier talent is a challenge many small CPA firms and other small businesses face. On the most recent episode of The Small Biz Brunch, a podcast from AICPA’s #CPApowered campaign, I chatted with Mark Astrinos, CPA/PFS about this issue, changing trends in the workplace and how they’re affecting bottom lines and company cultures. A business owner himself, he had some key insights into hiring and retaining top talent, especially when it comes to millennials. We’ve distilled three of those in this post (lets people know there is more info in the podcast).

It’s not just about the salary anymore.

A survey from the AICPA found that Americans would choose a job with benefits over an identical job that offered a salary 30% higher, but no benefits. These days, benefits – or perks – can be anything from 401(k) matches to delicious snacks in the break room. Overall, employees want to feel valued, which probably means providing more than just an appealing number on a paycheck (although, let’s be honest, that’s pretty important too).

Data breaches are here to stay

Data breaches are constantly in the news. Last year, Marriott, Quora and Dunkin Donuts all made headlines for privacy breaches – and that’s just to name a few. With breaches happening all the time, it’s easy to feel overwhelmed. But it’s more important than ever to focus on data protection. In honor of Data Privacy Day, here are three ways to protect your clients’ data during tax season and all year long.

Develop an incident response plan

Is your firm ready for a cyberattack? In today’s world, it’s not about if you will experience an attack, but when. Having a prepared incident response plan means you and your staff know what to do as soon as you realize an attack happened. You’ll be able to respond faster and more efficiently. Your response plan will delegate responsibilities, detail how you will notify your clients and help mitigate any reputation damage to your firm.

10 resources to help you cross the tax season finish line

When I was working in a small practice, tax season always felt like a race to me. After months of preparation, I sped toward filing deadlines that were akin to finish lines. Whether the goal was to take first place or simply get it done, I wanted to cross the line as strong and healthy as possible. That meant I had to pay close attention to my pace.

A big part of good race pacing is having supportive resources and people helping you along the way. Luckily, you have the AICPA and Tax Section team cheering you on. Here are ten resources I think will help ease the pressure this tax season.

3 personal finance lessons the failed Fyre Festival can teach you

Gourmet meals. Luxury villas. Dope music. Private jets. All on a secluded Bahamian island – sounds pretty epic, right?

Fyre Festival, the brainchild of tech entrepreneur Billy McFarland and hip hop artist Ja Rule, was expected to be an out-of-this-world, glamorous music festival. At least that’s how it was sold on social media – until festival-goers arrived on the island to find prepackaged sandwiches instead of celebrity chef-cooked meals, FEMA tents in place of the luxury villas…and no music. Needless to say, no one was happy after dropping up to $12,000 per ticket to be there.

Don’t overlook this crucial part of estate planning

We live in a time when numbers are getting so large that they begin to lose meaning. Understanding just how large one million is, is hard enough; when it’s a billion? A trillion? How about 30 trillion?

We’re seeing the largest transfer of wealth in history, as $30 trillion passes to the next generations from the baby boomers over the next two decades. Those estates come in sizes big and small, but they all have one thing in common: taxes. 

In the Tax Cuts and Jobs Act (TCJA) that took effect last year, the individual exclusion from gift/estate and generation-skipping tax was temporarily doubled, and in 2019 now stands at $11.4 million. That means a married couple has an exclusion of $22.8 million to use during their lifetime or at death. Before you go thinking that means estate taxes won’t affect the vast majority of clients, think again: the state your clients live in might not conform to the federal exclusion. It’s important to understand the major tax considerations in estate planning.

3 reasons why all entrepreneurs should hire a CPA

I’ll go ahead and say it – every entrepreneur should hire a CPA. And no, I’m not just saying this because I work for the AICPA. As host of The Small Biz Brunch podcast, I’ve had the pleasure of chatting with many successful business owners – and the majority say how they couldn’t have done it without their CPA. And if someone didn’t use one, they definitely wish they had. 

Read on for three good reasons why entrepreneurs should consider hiring a CPA: 

Tax technology: Outpacing the pace of change

The world is changing, but you already know that. As CPAs, we understand the quickening pace of technological, legislative and demographic changes because we see them influencing each step of our professional lives.

To be our best, we must out-maneuver and outsmart the changes that lie ahead before they ever happen. That means finding new ways to use technology to enhance what we do and how we do it.

The AICPA Tax Section recently released a Tax Technology Resource Center to help you do just that. Here are some of the highlights of how you can embrace technology trends and make the most of the exciting progression of our tax profession.

Don't look away! Blockchain isn't so bad..

I have a confession to make. Even though I get into just about anything techie, every time I see the word “blockchain,” my eyes and brain tend to glaze over. I suspect many others have the same reaction. 

Yet, we really can’t ignore it. According to Microsoft, blockchain will change the way people think about exchanging value and assets, enforcing contracts and sharing data. It’s expected to grow in importance and transform business operations – on the scale of email and websites. That means CPAs and their clients are going to feel its effects. Wanting to avoid being a “blockhead,” I dove in to see what blockchain is all about. Fortunately, Jim Barnes, a self-described blockchain evangelist, agreed to walk me through it.

No more hitting the snooze button on revenue recognition

We realize you’re busy, but that doesn’t mean you can keep hitting the snooze button on the Financial Accounting Standards Board’s (FASB) accounting standards that will soon come into effect for everyone. The accounting standard that needs your attention right now is the new revenue recognition model, issued as FASB ASU 2014-09 with subsequent amendments.

Public entities are well underway with adoption of the new revenue recognition standard, as the new guidance is effective for interim and annual periods in 2018. Private companies still have some time as the guidance is effective in 2019 for annual reporting periods, and in 2020 for interim periods. This is a wakeup call, and not an opportunity to hit the snooze button yet again.

The government has shut down, but tax season doesn’t stop

On January, 15, the IRS released an updated Contingency Plan recalling 57.4% of its employees to work during the filing season shutdown. Per the new plan, excepted employees now include those whose activities are necessary for the payment of tax refunds. These activities include:

• Processing electronic returns through issuance of refunds
• Processing Paper Refund Tax Returns through issuance of refunds
• Processing 1040X Amended Refund Returns Adjustments including Carrybacks, Amended Returns, Duplicate Filed Returns (DUPF), Correspondence, Injured Spouse Claims, Disaster Claims, F843 Claim for Refund and Request for Abatement in support of issuing refunds
• Processing Department of Defense Claims for refunds
• Manual Refund Support - Clerical
• Document preparation, screening and control of work in Image Control Team

5 retirement planning tips for tax clients

This blog was updated as of 12/5/2019

Successful retirement planning is all about strategy. Analyzing sources of income, estimating expenses, choosing investments and managing assets are vital to safeguarding long-term financial comfort later in life. However, one aspect of retirement planning is sometimes overlooked — tax planning.

As a CPA, you’re already helping your tax clients with their retirement planning needs, but are you doing enough? Take a moment to review these tax considerations to make sure you’re exploring all the options with your retiring clients. Then listen to this AICPA podcast for a deeper dive into the topic.

Looking at tax as part of retirement planning

How some taxpayers are getting grounded

Jane has a problem. She has tickets to fly to Europe next week, but her back taxes may be standing in her way.

Jane owes more than $75,000 in taxes, fees and interest to the IRS. She was aware of this substantial debt but had no idea that she could lose her passport because of it. She doesn’t understand what’s going on or what she can do.

Jane isn’t alone. The number of people receiving a Notice CP508C is growing, and more than 362,000 Americans are facing passport revocation due to significant tax debt.

One of your tax clients could be next.

The world is your classroom: Build your 2019 learning plan in minutes

Picture it: A knockerupper and a powdermonkey walk into a packed bar. To their surprise, there’s only one barstool left. The knockerupper looks over at the powdermonkey and says, ‘Are you gunning for that seat?’ to which the powdermonkey responds, ‘Don’t look so alarmed.’

Okay. Admittedly, the punchline would probably make more sense if knockeruppers and powdermonkeys were still relevant professions today. But that’s kind of my point. Because this joke illustrates an imperative, timeless truth:

Lifelong learning is no joke.

AICPA representing you in 2018

2018 was a busy year for the AICPA’s Advocacy team. We were invited to testify before key congressional committees, provided written testimony to legislators and regulators and submitted over 60 comment letters to federal agencies and accounting standard-setters, including the Department of the Treasury, the Internal Revenue Service (IRS) and the Financial Accounting Standards Board. We also supported state CPA society activities in their legislatures.

Our efforts produced results. Here are just some of them:

Guidance on meals and entertainment deductions

3 lessons “It’s a Wonderful Life” can teach you about revenue recognition

What happens when a small business fails to comply with important regulations? In the classic movie It’s a Wonderful Life, a local building and loan association is in danger of failing its bank audit because of a major—but innocent—mistake by one of its officers. Are your clients in the same kind of danger as Bailey Building & Loan?

They could certainly face unnecessary disruptions if they underestimate the impact of the significant new Financial Accounting Standards Board (FASB) revenue recognition standard and aren’t ready to tackle implementation as the rules become effective. (FASB Topic 606 is effective for nonpublic entities for annual reporting periods beginning after December 31, 2018.) Here are three lessons the movie can teach practitioners and clients before it’s too late.

It’s beginning to look a lot like tax busy season

Washington, D.C., got its first taste of winter just two days after the AICPA National Tax Conference this year. In some parts of the capital, it was just a dusting of snow. For those just north of the city, it was a blanket. While CPAs bundled up, drank hot cocoa and anticipated the wonder the season always seems to bring, they were reminded of the cold months ahead where the days are shorter, but the workdays are much, much longer.

The first sign of winter is also the first sign of busy season. It’ll be here before you know it, and with tax reform implementation in full swing, you’re going to need more than a wool coat and an ice scraper to get you warmed up and out on the road in the morning.

A recipe for success: Experiences to keep your clients coming back

You’re staying at a hotel in a city you’ve never visited before. After you check in and unpack your bags, you realize you’ve forgotten your pajamas and it’s too late to shop. You walk down to the lobby and mention your predicament to the front desk clerk. Sympathetically, she offers a solution. She tells you to have a seat and serves you a cup of hot tea and a perfectly warm and melty chocolate chip cookie. After just a few minutes, another staff member approaches you with a package of blue cotton pajamas. She explains they’re offered to you complementary for your stay.

Increasingly, consumers are valuing their overall customer experience much more than any tangible product or service they may receive. It’s what keeps them satisfied and coming back for more. You, too, have an opportunity to create exceptional and memorable experiences for your clients. What are you doing to keep them coming back for more? Here are three things to consider as you strive to go above and beyond for your clients:

40 trends that the Auditing Standards Board has outlived

Everyone gets pretty nostalgic on their fortieth birthday. But what if you are the Auditing Standards Board? How would you celebrate? We decided to take a light-hearted look at the trends that have come and gone over the last four decades. Join us for this ride back in time.

 Communications. In 1978, auditors didn’t have smartphones to communicate with clients. They used CB radios. Before long, the shorter car phone antenna became the status symbol of choice. Away from the car? Just page me (on my beeper). Motorola introduced a game changer in 1990: the bag phone. Soon, tech savvy CPAs were carrying a bag phone in one hand and a PalmPilot phone in the other. Fortunately, someone saw one of these CPAs in an airport and invented the Blackberry.

Wine, cheese and revenue recognition for everyone

If you think the Financial Accounting Standards Board’s (FASB) new revenue recognition standard is only applicable to those in the wine and cheese crowd, think again. The standard impacts companies of all sizes, from specialty shops to corporate lenders. You don’t need to be in an industry with specialized revenue to turn your attention to the new standard. At the Center for Plain English Accounting, we’ve been receiving questions from practitioners on their client’s behalf for some time now. We picked out a couple and provided answers to help you understand the new standard (ASC 606).

How to identify performance obligations under the new standard.

Question: My client runs a direct sales gourmet cheese business. Individuals who join the Cheese Club pay a monthly membership subscription fee of $49.95 and receive $49.95 each month in “Mozzarella Moola” to spend whenever they please. Members of the Cheese Club also receive 25% off all purchases and receive exclusive early access to purchase new products. In this scenario, what are the performance obligations?

4 tips to identify audit client risks

This blog post is the second in a series on risk assessment, a significant audit quality issue. View the first blog post here. 

Anyone who owns a home has had some experience with lawn care. Maintaining a healthy lawn is easy when you have a lush field of bluegrass, but when things start to get patchy, that’s where the real work comes in. That’s when you have to get a good understanding of what is going on with your lawn and what might be causing the patches. Only then can you pick the right treatment.

Auditing a set of financial statements is no different. To perform an effective audit, you must first gain an understanding of your client and identify their specific financial reporting risks. Until these steps are complete, you have no basis for planning the rest of your audit procedures.

Think sustainability’s unsustainable? Think again.

As a CPA, you build strong relationships with your small business clients, so you’re not surprised when one of your clients, who is running a startup, asks for a meeting to talk about her goals for the coming year and beyond. She is looking to enable growth by attracting new investors, to continue recruiting quality talent and to differentiate the company in the marketplace by giving it a competitive edge going forward. You want to help, but where do you start?

Rethinking the business  

While such goals can sometimes seem daunting, you know that there are simple steps she can take to improve her chances of achieving all three: Make changes that ensure her company is operating in a sustainable manner. There are some direct results of embracing greater sustainability. These include fostering innovation, driving financial performance and improving risk management, according to a Harvard Business Review article. Other benefits include improved brand image, greater appeal to employees and investors and increased ability to comply with regulations. 

Your life. Your terms: Four steps for reducing stress and reclaiming your life

Life is stressful, there’s no doubt about it. But you have the choice to maintain a different perspective, instead of letting stress overtake you every day. Here are four steps to reduce stress and live a well-balanced life:

Step one: Get clear on your purpose

Living life on your own terms requires clarity of purpose. Do you know what matters to you most, and why?  Consider the life wheel. There are eight buckets on the wheel: family, work, money, personal growth, health and wellness, spirituality, community and living environment. You must decide which three or four are most important to you, and why. Time is limited, which means you can’t weight all life areas equally. When you know your “what” and your “why,” you’ve got power—the power to dial up the time and energy for what matters most, and the power to pull back on what doesn’t.

5 tips to help small business clients prevent cyberfraud

Imagine you’re at work on a typical Monday morning. Suddenly, an email from the CEO hits your inbox. It’s marked ‘urgent,’ so you open it right away. She needs you to wire $15,000 to one of your regular vendors ASAP. You make the wire transfer, and head to the break room to refill your coffee. There’s just one problem – that email wasn’t really from your CEO. And that bank account where you sent the funds? That’s not your vendor’s account. You just sent thousands of dollars to a cyber criminal. Uh oh.

It’s a scheme called executive impersonation, a type of business email compromise (BEC) scheme mentioned in an SEC alert issued last month. Unlike a typical scam email, which may have poor grammar or overly suspicious requests, BEC scams are convincing because the criminals spend time figuring out the corporate culture and common phrases and terms used by employees. CPAs should take note, because scammers could try to perpetrate a similar fraud against their small business clients.

Licensure under fire in the states

A powerful narrative is taking shape across the country that could define the future of licensure. State legislators are coming together to challenge the necessity and value of occupational licensing. 

So far, there have been no direct challenges to whether CPAs should be licensed. However, there’s a national anti-licensure legislative strategy that does not distinguish between occupations and learned professions such as CPAs.

The changing legislative environment means we risk losing licensure as a means to protect the public. That would mean no licensed architects, no licensed engineers and no licensed CPAs. We’ve spent decades ensuring that only qualified and educated professionals can hold out as CPAs. Clients trust CPAs to act as their fiduciaries because they know the profession is well regulated.

Americans’ financial satisfaction reaches new high—can you feel it?

For the fifth quarter in a row, the typical American’s personal financial satisfaction reached an all-time high, according to the AICPA’s Personal Financial Satisfaction Index (PFSi). A record number of job openings, along with the stock market’s bullish performance though Q3 (Oct 1) - despite volatility - boosted Americans’ financial positions. With all these positive records, you may be wondering what it means for you.

Tax identity theft: A horror story

Halloween used to scare me. I was sure that monsters — specifically zombies — were out to get me. But I’m not afraid anymore because I faced down a nameless ghoul who did more actual harm to me than any imaginary monster could ever do.

It all started one fateful day when an identity thief used my name, Social Security number and birth date to file a fraudulent tax return, netting the fraudster a $4,000 refund. While it was an excellent payday for the thief, it was the start of some major headaches for me.

By the time I found out what happened, I was on the hook for more than $14,900 (including supposed unpaid taxes, penalties and interest). Fresh out of grad school with high student loan debt, rent and health insurance payments, I was completely unprepared to weather this storm.

Are you the analytical type? A cool, new path is emerging.

 

As a CPA or CGMA, you excel at getting into the weeds. Whether it’s a reporting discrepancy or buried tax provision, you will find it. More importantly, you know how to arrange those weeds to form a bouquet that helps your client.

Now, with software spouting numbers on everything from revenue and sales to “likes” and clicks, a new business opportunity is opening up, one that lets you use that great analytical mind to serve clients who desperately need help with getting a grip on all that data.

“CPAs are ideally positioned to be able to step in and do that type of work.” said Dan Griffiths, CPA, Strategy and Leadership partner at Tanner LLC. Griffiths ought to know. In addition to Tanner’s tax and audit practices, the firm has stretched its accounting arms to carry a range of specialty consulting services such as strategic planning, cybersecurity and, now, data analytics.

4 strategies to capture the growing Hispanic market

As CPAs, we’re always interested in numbers, so let me share an interesting statistic: The United States Census Bureau has projected that  groups now considered ethnic minorities will make up the majority of the population by 2042 with Hispanics being the second largest racial or ethnic group and second fastest growing.

According to market research by Nielsen, there are about 57 million Hispanics in the U.S., or 18 percent of the population, making them an important demographic to any business – including CPA firms. Is your firm ready to engage with these potential clients and staff? There are a few insights that can help CPA firms connect with this burgeoning business and talent market.  

5 cybersecurity frameworks accountants should know about

You’ve seen all the news stories: Cyberattacks are happening almost daily, and they can have devastating consequences. You know you need to protect your organization’s data. But where do you even start?

A cybersecurity framework can guide you in the right direction. These frameworks help you design a cybersecurity risk and controls process that is right for your organization. Whether you’re interested in helping set up your own organization’s cyber program, or you’re interested in providing assurance on other organizations’ cybersecurity systems, you should be familiar with different cybersecurity frameworks and what types of companies they’re best for. I’ve listed a few common ones you should know about below.

Yellow Book meets yellow cake and all sorts of delicious changes

While I’m not a good baker, when I talk to CPAs who are new to the governmental auditing area and need to understand what the “Yellow Book” is, I often explain using the analogy of a multi-layered cake. The bottom layer of the cake is the AICPA auditing standards, which are the basis for most Yellow Book audits. The second layer of the cake (let’s make it a yellow layer!) adds standards issued by the Government Accountability Office (GAO), known as the “Yellow Book” or Generally Accepted Government Auditing Standards (GAGAS) that build upon the AICPA rules. Finally, if your client gets federal funds, there may be a third layer of the cake that consists of compliance auditing requirements.

The big news for auditors right now is that the GAO has issued a 2018 revision to the Yellow Book which will change the ingredients for the middle layer of the cake. If you audit federal, state or local governments, or not-for-profits, whose audits are subject to the Yellow Book, you should begin updating your recipe card so your cake turns out right. 

Life lessons learned while training for the IRONMAN® triathlon

On August 19, 2018, I checked something off my bucket list: I completed the IRONMAN® Mont-Tremblant triathlon – a 2.4 mile swim, a 112 mile bike ride and a 26.2 mile run. I wasn’t particularly fast — it took 15 hours and 40 minutes to finish — but it was an amazing day in beautiful Quebec, Canada, that I will never forget.

As an adult, I developed a love of running to help stay active and reduce stress. When I turned 40, I got into triathlons to mix it up a bit. For many years, I wasn’t very athletic. So it was pretty shocking to many that I had undertaken such an intense activity.

Now, having run countless miles, I’d like to share some of the lessons I learned while training and running. I find they cross over into my everyday business life.

Technically, your planning practice could be better

Is there even a day that passes anymore in which you don’t read, hear or watch a story about the wonders of technology? New apps, new computer systems and entirely new technologies are emerging and being put into practice at dizzying speeds. Cutting through the noise and knowing which technologies are best for your planning practice can be complicated, but ignoring the value technology can add to your practice carries a heavy price in lost efficiency and opportunity.

Are you still driving a manual?

Spreadsheets used to be the go-to tech for organizing and assessing a client’s finances and your resulting financial plan. Handy but labor-intensive, spreadsheets were and are prone to errors and omissions. Other old-school trappings like physical copies of client’s financial data, wills or healthcare directives presented other problems related to security, inaccessibility or loss of the paperwork due to disaster or misplacement.

4 tips to make a case for a reduced work schedule

According to the most recent data from the U.S. Department of Labor, 70 percent of women with children under the age of 18 are part of the work force. Just like many working parents, I struggled trying to balance the demands of work and home life. That’s why working on a reduced schedule for part of my career was so beneficial.

When I had my first child in 1986, I was a manager in the tax department at Deloitte Tax LLP in Detroit. Through the flexibility options available, I returned from maternity leave and began working a 60 percent schedule. I even rose to a leadership position doing so. The experience was so valuable. It allowed me to be the kind of mother I wanted to be, while also giving me the opportunity to build my career. Here are some tips for talking to your employer about a flexible schedule and maintaining professional success:

So, your tax clients say their daughter got into Harvard...

Your clients are ecstatic. Their daughter just got accepted to an Ivy League college. But they’re also worried because that top tier school is expensive. Concern doubles when they think about their 15-year-old son who just started at a private high school. He’ll be looking at colleges soon, too.

Many parents feel financial pressure when it comes to their children’s education. That’s not surprising considering that in 2016, the yearly estimated average cost of undergraduate tuition, fees, room and board was $16,757 at public institutions, $43,065 at private nonprofit institutions and $23,776 at private, for-profit institutions. 

What can you as a tax practitioner do to prepare your clients for this financial milestone? Below, you’ll find four suggested talking points to put your clients’ minds at ease.

Help disaster survivors -- not scam artists

It’s a familiar cycle. Disasters like Hurricanes Florence and Michael strike, and the airwaves are inundated with news of people displaced and homes destroyed. And shortly afterwards, you’ll see friends and colleagues ‘sharing’ on social media that they’ve contributed money towards relief efforts on crowdfunding platforms such as GoFundMe and encouraging others to give what they can.

For many people, their sense of compassion kicks in and they are compelled to do what they can to help – which often means making a financial donation. In fact, charitable giving in the United States soared to a record $410.02 billion in 2017 according to Charity Navigator.

But CPAs who specialize in financial fraud detection and prevention warn that you should think twice before clicking that DONATE NOW button. Fraudsters often take advantage of people’s good will and look to rip them off as they try to help those in need.

Planning, valuation could have saved Franklin’s heirs $20mil

Aretha Franklin, the “Queen of Soul,” passed away last month in her birthplace of Detroit after six decades reigning the music industry. The first woman inducted into the Rock and Roll Hall of Fame, Ms. Franklin leaves behind legendary hits and performances and a legacy many entertainers only dream of achieving. What she didn’t leave behind, however, is a will.

Without a will in place, it’s now up to the state of Michigan to determine how her reported, yet unconfirmed, $80 million net worth is divided among her four children. And that amount could rise as her estate is valued. In hindsight, with some tax and financial planning, and a quality valuation—even just a few months ago—Ms. Franklin’s beneficiaries could have saved more than $27M in estate taxes.

Are you ‘more dumber’ than your smartphone?

Chances are, you love your smartphone.

No. I mean: You really love your smartphone.

MRI studies show that when we hold our smartphones, we almost feel as though they’re holding us back. Our brains produce a veritable love potion of chemicals – namely dopamine and oxytocin, the same chemicals released during cuddling. I guess that makes sense. Our smartphones, after all, make great partners. They keep us updated on the weather, the news, the stock market. They advise us where to go for dinner, how to get there, and (thanks to social media apps) whom we should invite – even if we end up ignoring that person the entire time by catching up on emails or playing Fortnite Mobile. Smartphones and other devices typically don’t argue with us, and – provided they’re well charged – they’re there for us when we need them.

Is it a surprise, then, that we’re sacrificing our personal relationships for our relationships with devices? And in doing so, we’re also sacrificing something else: our humanness. As technologies get smarter, we become more reliant, which can actually chip away at our own intelligence.

Take what happened on September 6, 2012:

Beyond robotics: How AI can help improve the audit process

The CPA profession has been hearing a lot about Robotic Process Automation (RPA), a software technology that can help auditors sift through structured data. But RPA can only do so much. Abigail Zhang, a PhD student in the Department of Accounting and Information Systems at Rutgers Business School, explains why auditors should also consider Intelligent Process Automation (IPA).

What is IPA?

Intelligent Process Automation (IPA) includes:

• Robotic Process Automation (RPA)
• Artificial Intelligence (AI)
• Cognitive Computing (CC)
• Other technologies

Calling all tax CPAs: help quality reviews take center stage

Data breaches happen daily. We see it in the news, and we hear it from our clients. Clients trust us with their private information including Social Security numbers, paystubs, birthdays and other data valuable to identity thieves.

We need to maintain security and provide the best service for our clients. To do this, we must observe two things: integrity and adherence to the quality of services we deliver. And both require obedience to specific standards of behavior.

In the case of quality, there are many ways to prove we’re adhering to standards. Reviews of our work are one. But doing so can raise significant concerns for practitioners, particularly when it comes to logistics.

Taming your to-do list

“Until we can manage time, we can manage nothing else.” ~Peter Drucker

Two things trip up most leaders’ attempts at managing their time. The first is the fact that the best systems and best intentions quickly run into dynamics in the real world: You’ll get interrupted, there will be an unforeseen obstacle or crisis, you’ll go through motivation and energy ups and downs, and so much more. Translating your intentions into practice often fails through small compromises you feel you must make in your day to day activities. The second is that most principles in time management focus on how you spend your time, but that philosophy just puts you on a “hamster wheel” that doesn’t move you forward. It isn’t about how you SPEND your time, it’s about how you INVEST your time.

5 podcasts for your summer road trip

Taking a family road trip is one of the rites of passage that we all go through during summer. The kids have their iPads and books, the dog has his bone, and that just leaves the adults to find ways to make the long hours go faster. You can either click the radio buttons a thousand times to find a station remotely tolerable, you can listen to the kids fight about who is touching who, or you can find an alternative.

Enter the podcast

A podcast is a great way to make the miles fly by. Of the more than 550,000 podcasts you can listen to, you’ll find educational, entertaining, or just plain random content. Did you know that there is a 51% chance that a flipped coin will land on the side that was facing up when it was flipped? A fun fact and I learned it from a podcast!

I jumpstarted my productivity in 15 minutes – and you can, too!

It was early January 2014. The Kansan plains were covered in a crunchy layer of frozen grass, the overcast sky giving little indication that the ice would soon melt. Staff at Swindoll, Janzen, Hawk & Lloyd – a small accounting firm – were eager to step in from the cold to start their day. But this day would start differently than others. No one opened their laptop. No one phoned clients. No one crunched numbers. Instead, everyone, from partner to administrative assistant, had their heads down in a nonfiction book of their choice. They read uninterrupted, untethered from technology, for 15 minutes. You see, this firm had taken the first step in a journey that would evolve from an experiment into a successful on-the-clock reading program. And that reading program would evolve them too. 

Admittedly, The First 15 reading program took some time to get off the ground because, although everyone agreed to the merits of reading, no one had time for it. That’s when Chet Buchman, managing partner and eventual architect of the reading program, suggested paying for people to read on the clock. “You can’t control what people have going on at home…but you do have the ability to influence what happens when they’re on the clock.” 

Is hiring a CPA worth it in 2018?

When people hear I’m a CPA who specializes in tax, the question invariably comes up — what do I think about the new Tax Cuts and Jobs Act (also known as “tax reform”)? I’m not one to talk about politics, so to be neutral, I say “it’s certainly an exciting time to be a CPA in tax.” No question, many of the provisions of tax reform bring added complexity to areas of the law that were not simple to begin with. 

Some individuals will continue to feel comfortable using tax preparation software, but there are circumstances where “you don’t know what you don’t know,” requiring you to call in the help of a CPA. A great CPA can provide much more value than just the peace of mind that comes from knowing that your forms are correct. They can provide planning and tax advisory services, consultation, business and international accounting, forensic accounting, business valuation and more. 

Read on to learn four reasons why it’s worth hiring a CPA.  

8 tips to help recent grads establish financial independence

School's out for summer! And, for some, school is out for good. In honor of America declaring its independence, here are 8 tips from the American Institute of CPAs' National CPA Financial Literacy Commission to help recent college grads declare their own FINANCIAL independence now and for the future:

1. Have a plan to repay student loan debt. While paying off significant debt takes time, establishing and sticking to a plan will put you on a good path toward your financial independence. The AICPA’s 360 Degrees of Financial Literacy website has free resources to help create a plan to reach your financial goals.

An insider's look at avoiding ethical violations

Ethical dilemmas can occur at any time during the career of a tax practitioner. Sometimes, the practitioner doesn’t even know they did anything wrong. As a former IRS Office of Professional Responsibility attorney, cases just like that would come across my desk.

A vast majority of these cases came from simple misunderstandings of ethical responsibilities — practitioners were not aware they were violating Circular 230 or the practitioner just had a bad day and made a one-time mistake. Review these stories and learn a little more about how easy ethical violations can happen if you aren’t paying close attention. (Note: details have been changed to protect the privacy of those involved).

7 risks small businesses need to consider

Except for an expanding waistline, what could be risky about ice cream? Ask the small business owners overseeing an ice cream shop on the boardwalk that caters to summertime beach crowds. They’re a small, family-run business and their main revenue is generated in the months of June, July and August. The income from those months must sustain them through the slower months. What happens if they aren’t prepared for an event that affects their shop? Will their business survive? That’s where you come in.

Risk, schmisk?

Risk is a relative term to your clients. Some risks are minor and easily handled in the moment; for example, an employee fails to show up to work. Other risks pose an existential threat to the business, such as an accident, natural disaster or fire.

4 tips to smart budgeting for new graduates

What if you put together a budget but forgot about income taxes that would be deducted from each paycheck? That’s what happened to me when I graduated from college, so I can tell you: It would be a disaster! My first paycheck was a huge shock, since I was taking home much less than I had expected. But incorporating a few easy budgeting tips can help set you up for a path to prosperity and avert potential disasters.

Start early. Right after graduation, create a budget before committing to long-term expenses – like rent – so you start with a clean slate. The largest part of any budget will likely be housing costs. A good rule of thumb is that they should not add up to more than 30% of your salary. For example, if you make $50,000 a year, your total rent should be no more than $15,000 a year, or $1,250 a month. If you live in a high rent area, then 30% may not be realistic for an entry-level salary – which means you may have to scrimp on other items or find roommates.