IRS crypto guidance every tax practitioner should know

Shutterstock_732138853The IRS is getting serious about cryptocurrency. This fall, it released three documents that all tax practitioners need to pay attention to ahead of the 2019 filing season: a retroactive revenue ruling, FAQs for reporting cryptocurrency ownership and Form 1040 that asks taxpayers about their financial interest in virtual currency.

Revenue ruling

On Oct. 9, the IRS released an authoritative revenue ruling that specifically addresses situations in which a taxpayer receives auto-generated cryptocurrency. According to the IRS, this type of situation – known as a hard fork and airdrop – always triggers a tax obligation. Thus, because forks and airdrops are often unprompted by the individual who owns cryptocurrency, a taxpayer could receive digital currency against their wishes and still must pay taxes on it.

Continue reading "IRS crypto guidance every tax practitioner should know " »

12 free tax resources to get your firm ready for 2020

GettyImages-169274514The new year will be here before you know it. To get a head start on tax season, check out these free resources to get your firm in top shape for 2020.

Stock your arsenal of forms, templates and charts:

  • Year-end planning letter for individuals It’s the season. Tell your clients about key steps to take today to build a solid tax and financial planning strategy in the new year.
  • Year-end planning letter for small business Strengthen relationships with your small business clients. Use this letter to tell them about important tax considerations and point out that you can help with strategic tax planning.

Continue reading "12 free tax resources to get your firm ready for 2020" »

Reimagining the profession for a vibrant future

Barry Melancon Headshot (1)Barry Melancon, CPA, CGMA, President and CEO of the American Institute of CPAs (AICPA) and CEO of the Association of International Certified Professional Accountants (the Association), reflects on the successes of 2019 and the opportunities ahead.

This year, you’ve talked with members about how we need to reimagine the profession. Can you explain more what you mean by “reimagine”?

In today’s marketplace, virtually all companies are reimagining who they are, what they offer and how they deliver services and products. To meet the changing needs of clients and employers, we, as a profession, are also reimagining what it means to protect the public interest and serve as trusted advisers. We are providing clients and companies with new services and embracing new technologies to enhance the quality, efficiency and value of what we do. Together, we’re creating a future that may be dramatically different from the past but will remain a beacon of trust and opportunity for all accounting and finance professionals and everyone we serve.

Continue reading "Reimagining the profession for a vibrant future " »

Derivatives are back, but are the risks?

Shutterstock_744615220Mortgage-backed securities, credit-default swaps and derivatives were not much more than financial industry jargon until the recession of 2007. When the world economy nearly collapsed—due in part to mismanagement of and poor investment in complex financial instruments—those terms entered the mainstream.

The 2019 survey of business executives reveals that 59% of CPAs have complex financial instruments on their balance sheets. Of those, 28% said they expect complex financial instruments to take an even bigger percentage in the next three years. At the same time, 55% said they are concerned about the valuations of those investment vehicles, and 69% said they expect them to become even more complex, making them harder to value.

Continue reading "Derivatives are back, but are the risks?" »

D&I initiatives: A strategic imperative

GettyImages-669854210Ensuring diversity & inclusion remains high on an organization’s agenda is key to long-term success and growth. Because this topic is so important, I have made raising awareness of this initiative my personal goal, and I‘m having conversations like these with key players throughout the accounting and finance profession on tactics they’ve implemented.

Staff is the greatest investment in your firm, and often recruiting, growing and maintaining the best and the brightest talent are critical priorities for firms. It’s also exactly what Michele Meyer-Shipp finds so vital about her role as chief diversity officer at KPMG. No matter how much time and energy firms pour into their recruiting and retention efforts, they will not have access to the full talent pool without committed D&I initiatives.

During a recent LinkedIn Live, I sat down with Michele to discuss observations and advice for firms seeking to strengthen their D&I efforts. Here are the key takeaways from that conversation.

Continue reading "D&I initiatives: A strategic imperative" »

How to make the accounting profession more diverse and inclusive

Shutterstock_229737430An increasing number of ethnic minority students are enrolling in and graduating from accounting programs, according to the AICPA’s 2019 Trends in the Supply of Accounting Graduates and The Demand for Public Accounting Recruits report.

The biennial report identifies key trends in U.S. accounting enrollments and graduations. It also tracks hiring of new graduates in the public accounting sector. Published since 1971, Trends provides statistical projections and respondent expectations based upon university responses. The latest report covers the 2017-2018 academic year and firm responses for the 2018 calendar year. It is intended to help the accounting profession — from educators to firms to state associations and the AICPA — tailor programs and outreach efforts.

Continue reading "How to make the accounting profession more diverse and inclusive" »

How to ride the innovation curve

Shutterstock_1556033876At a time of significant and constant change, how can we ensure that our organizations — and our own careers — are positioned to ride the curve of innovation? My research into the history of accounting has revealed patterns that indicate the best ways to respond to the current environment. If you want to prosper as you move ahead, these are the steps you need to take.

Follow the S curve

Most business people are familiar with the hockey stick curve: A flat, quiet period followed by explosive growth in a service or business. However, the S curve can actually be a better indicator of what will next crest the wave of change.

Continue reading "How to ride the innovation curve" »

Use data analytics to drive your business

Shutterstock_148158431There’s a lot of buzz surrounding data analytics. But what does it actually mean in a company’s day-to-day business? According to the information technology research and advisory company Gartner, data analytics provides a data and insight-centric approach to solving a business problem. The entire organization can use the created insights to drive business decisions. It’s not just about developing a lot of reports, building models or moving data around, but instead it’s about solving business problems to make decisions faster and more effectively.

My company runs amusement parks, water parks and family entertainment centers across the country, with millions of visitors each year. We’re only about five years old and continue to acquire new parks. Some of the considerations we’ve used data analytics to address include:

Continue reading "Use data analytics to drive your business" »

6 ways we’re working for our small firm members

IStock_73233617_XXXLARGESupporting your firm is a top priority here at the AICPA. That’s why we travel across the country, speak with practitioners at conferences and events, and gather feedback via email and phone — all to make sure we grasp the pressing issues for firms of your size.

With this knowledge, we develop tools and resources to help your practice run more smoothly. Below are six ways we’re championing you, our small firm members.

1. Navigating tax law changes. We know the past year hasn’t been easy, but we’re here to help. Looking for news, answers to common questions, guides or learning opportunities? You’ll find them and more on our Tax Reform Resource Center.

Continue reading "6 ways we’re working for our small firm members" »

Make yourself irreplaceable to clients

Shutterstock_1043390353How can you become a “client whisperer,” who is an irreplaceable part of your clients’ financial lives? By figuring out how a client’s current finances can help become them accomplish their business goals over the short, medium and long term. In my own practice working with small companies, here are some of the lessons I’ve learned:

Be a boutique.

Become familiar with all parts of a client’s business, their products or services, their operations and their people. You’ll then be able to offer targeted training and solutions to help them be more productive and profitable. It’s a very rewarding relationship, and it also make you hard to replace.

Continue reading "Make yourself irreplaceable to clients" »

Revenue recognition and independence: Something to consider

GettyImages-621032734Implementing the new revenue recognition standard is like climbing a mountain.

It’s a challenge. It has to be addressed since the standard is effective for private companies and many not-for-profits in calendar year 2019. It can be tedious to make sure systems are updated appropriately and staff is trained.

Sometimes your clients may get breathless through this exercise and feel discouraged, so they turn to you. As your clients’ management and accountants climb “Mount 606,” as I like to call it (named after the FASB ASC 606), they look to their CPA firms — you — for help up the summit.

Continue reading "Revenue recognition and independence: Something to consider" »

How the Boston Red Sox win with data analytics

Shutterstock_311860862They might not have won the World Series this year, but the Boston Red Sox are definitely winning. As one of the highest-valued Major League Baseball franchises, the organization leverages the power of data analytics to make better business decisions. Tim Zue, the franchise’s Executive Vice President and CFO, recently shared in a Facebook Live interview how he uses technology and data to increase revenue, lower costs and optimize the fan experience. Here’s his advice on how finance leaders can use data analytics to bring greater value to their organizations and customers.

Continue reading "How the Boston Red Sox win with data analytics" »

Boost your career by becoming a better listener

Shutterstock_744297028What did you say?

Listening can seem surprisingly complicated. It’s possible to hear what someone says but not catch every nuance of what they are telling you or their unspoken statements. Improving your listening skills can help you become a better professional. It can make it easier to understand what a colleague or supervisor expects of you or determine what service will add value for a client.

In honor of National Listening Day, here are ways to enhance your ability to be an active listener.

Continue reading "Boost your career by becoming a better listener" »

5 things you need to know about blockchain for insurance

Shutterstock_1034519539The original goal of the first Bitcoin blockchain was to improve the efficiency, transparency and speed with which institutions could conduct financial transactions and trade information. That objective is still front and center today, which is why blockchain is being embraced by the insurance industry.

Here are five key insights into the ongoing impact of blockchain:   

1. The importance of blockchain is clear. A public, private or consortium blockchain enables individuals to store and transmit information to each other in a manner that’s encrypted. It can be a great advantage in helping clients and customers make more informed choices. Today, the significant amounts of time that people spend reconciling and transferring data do not add value for their organizations or their customers, but with blockchain that manual reconciliation and transfer are no longer necessary.

Continue reading "5 things you need to know about blockchain for insurance " »

Cybersecurity best practices for the c-suite

GettyImages-980792054Turn on the news and you’ll see that no organization is too big or too small to be the victim of a cyberattack. It’s vitally important for an organization’s leaders to understand and manage cybersecurity efforts because you can never be totally safe from the risks.

Here are four cybersecurity best practices every organization should follow:

1. Keep your system up to date.

Continue reading "Cybersecurity best practices for the c-suite" »

Getting tech right in a Personal Financial Planning practice

Shutterstock_314913380What’s the right technology for your financial planning practice? In a recent AICPA podcast, I interviewed an expert panel of CPA financial plannersfor advice. Some offer tax compliance and investment management, while others do not. To learn more about their practices, check out this podcast.

Continue reading "Getting tech right in a Personal Financial Planning practice" »

4 financial tips for entrepreneurs

Shutterstock_1499312708It’s National Entrepreneurs’ Day! Take a moment to celebrate your success or the great plans you’ve developed.

Maybe you’ve got a fantastic idea for a business and your confident it’s going to be successful. Or perhaps your company is already up and running, but you constantly wonder whether you’re doing everything you can to ensure your business’ financial success and security — and your own. No matter what stage you’re at in the entrepreneurial journey, you can follow these four steps to make the most of the business you’ve built and the future you’re hoping it will have.

Continue reading "4 financial tips for entrepreneurs" »

The productivity method more effective than time management

Shutterstock_1208383510What have you done to manage your time and make it stretch as much as possible? Many of us spend extra time at the office, take work home and scramble to keep up with our never-ending to-do lists. But how do you know when you’ve gone from stressed out to burned out?

It can be hard to know, since burnout can sneak up on you. If you’re showing signs of burnout, though, you can recalibrate and focus on managing your energy rather than your time. 

Recognize burnout

Continue reading "The productivity method more effective than time management" »

Why did you become an accountant?

Shutterstock_1467409505Today is International Accounting Day, a day started to honor Luca Pacioli — the Father of Accounting and Bookkeeping. On this day, we honor the hard work of accounting and finance professionals around the world. To celebrate, we asked CPAs why they chose the accounting profession. Here’s what they said.

“I went to college knowing one thing — I was going to college. I didn’t know what my major would be, so I started taking classes that I thought sounded interesting. A year and a half in, I signed up for my first accounting class. I jokingly tell people that on day one in my intro to accounting class, I could hear a chorus of angels singing. Suddenly, I’d found my calling — debits and credits were the most genius thing ever. It clicked, it made sense and I loved it! Accounting is the language of business and financial literacy — a valuable life skill. The opportunities I’ve had because I’m a CPA are more than I could have imagined, and I’m very thankful I signed up for that intro to accounting class.”

Continue reading "Why did you become an accountant?" »

Helping your tax clients manage risk

Shutterstock_401845456After another successful busy season, it’s time to take a broader look at your clients’ needs. While tax is one important component of your clients’ financial picture, they need help in other important areas.

They may not be aware that managing risk affects their financial picture. There’s a significant relationship between your clients’ financial well-being and risk management.

Here’s one great example: The greatest potential economic loss for most clients is income loss, either through death or disability. Insurance often best addresses that risk because of the potential magnitude of the loss. If a client dies, beneficiaries inherit the death benefit free of any federal and state income tax, which can be tremendously helpful to those who were depending on the decedent’s income stream. If the policy has a cash value feature such as a universal life insurance policy, the cash value accumulates on a tax-deferred basis. It may be accessed through loans and taxed on a first-in, first-out basis, meaning that any premiums paid on the policy are taken out first and would be tax-free.

Continue reading "Helping your tax clients manage risk" »

Creating the next generation of CPA leaders

2019 AICPA Leadership Academy group photo (1)There is little doubt that the accounting profession is undergoing major change. New technologies, like blockchain, data analytics and artificial intelligence, are altering how services are provided and redefining the types of services clients need. 

To meet these new demands of capital markets, CPA firms must make sure their employees possess or learn the necessary technology skills. They also need to attract leaders capable of navigating the changing profession, and these leaders will ideally bring fresh talent along with them. That’s where the AICPA’s Leadership Academy comes in.

Continue reading "Creating the next generation of CPA leaders" »

Four crucial tips to protect your organization’s data

Shutterstock_378127909The cost of cybercrime is increasing at an alarming rate. By 2021, the estimated damages from cybercrimes will be around $6 trillion, according to Cybersecurity Ventures. What can your firm or organization do to ward off evil cyberthieves? Joel White, CPA, CGMA, and Senior Director of Internal Audit, Risk & Compliance at the Association, offers four simple tips to help your firm or organization beef up its cybersecurity defenses. Here’s a quick recap.

Continue reading "Four crucial tips to protect your organization’s data" »

Is the spookiest item on your calendar a networking party?

Shutterstock_589482413You hear unfamiliar voices in the distance as you walk down a strange corridor to an uncertain fate. Are you entering a haunted house? No, it’s just a networking event!

Halloween is today, but for many people, there are spookier things than ghosts and goblins. If your pulse races when you think about networking, there are several ways to more successfully make important connections.

Continue reading "Is the spookiest item on your calendar a networking party? " »

ICYMI: Five things you need to know about cybersecurity

3It's startling that a cyberattack happens every 39 seconds (source: University of Maryland) and one out of every three businesses will experience a cybersecurity breach within the next two years. The average cost of that breach in the U.S.? $8.19M! As protectors of valuable financial and personal data, CPA firms are prime targets for cyberattacks. Considering the major financial risk that organizations face by failing to set up sound cybersecurity measures, we chatted with two of the Association’s experts on the topic. Joel White, CPA, CGMA, Director of Internal Audit, Risk & Compliance and Jay Overcash, Director of IT Security Strategy, answered your top cybersecurity questions.

Here’s what we learned:

Continue reading "ICYMI: Five things you need to know about cybersecurity" »

The 5 flames that motivate your people

Shutterstock_791792272What motivates your people? And how can you key into their motivators to drive strong performance?

Abraham Maslow, a psychologist who developed a pyramid-shaped hierarchy of needs, was a pioneer in the study of motivation. His pyramid begins with basic needs, such as food and shelter, followed by social needs, creative needs and, ultimately, self-actualization. Daniel Pink, author of Drive: The Surprising Truth About What Motivates Us, takes that idea one step further. Writing on how businesses can match people’s motivations, he argues that as humans we are driven by three key motivators:

Continue reading "The 5 flames that motivate your people" »

5 tips for implementing the leases accounting standard

Shutterstock_1031148421Does your company or client lease assets such as real estate, airplanes or manufacturing equipment? If so, then you may want to keep reading...

In 2016, the Financial Accounting Standards Board (FASB) issued a new financial accounting and reporting standard that requires companies that lease assets (lessees) under operating lease arrangements to recognize those arrangements on their balance sheets. 

You may be wondering “Why a change?” Given the prevalence of leasing in the marketplace, it’s important for users of financial statements to have a complete and understandable portrayal of a company’s commitments to leasing activities.

Continue reading "5 tips for implementing the leases accounting standard" »

What I learned from my clients' tax returns

Shutterstock_747539488If you’re a CPA who has considered a move to financial planning, there are a few strong reasons why you as a tax practitioner are already best positioned to offer Personal Financial Planning (PFP) services. A little over a year ago, I achieved a lifelong dream when I opened my financial planning practice after 28 years as a CPA. Setting off on your own can be daunting, but I knew I was ready, in part because of my extensive tax background. Here’s how I knew:

Tax expertise is the foundation of personal financial planning.

Continue reading "What I learned from my clients' tax returns" »

What were the challenges of the 2019 tax season?

Shutterstock_767539465Do you hear the big sigh of relief? It’s Oct. 18, just three days after we filed the last big group of extended returns for individuals and businesses.

When I started working for a local public accounting firm over 40 years ago, taxpayers had a two-month automatic extension to June 15 for individual returns. We could request an additional two-month extension to Aug. 15. At that point, we could request an additional two-month extension to Oct. 15 if there was a good reason. Can you imagine all that paperwork? With those interim deadlines, we encouraged clients to pull their information together during the summer, and returns were finalized earlier. Although there were always stragglers, today’s compressed workload for Sept. 15 and Oct. 15 was less intense for practitioners.

Continue reading "What were the challenges of the 2019 tax season?" »

3 ways data can evolve your business

Shutterstock_218740615If you’re not on the data science wagon yet, you should probably consider jumping on in the near future. With 2020 right around the corner, data will continue to remain at the forefront of decision-making – and we’re bound to witness ever more ways it can evolve the marketplace.  

Still convincing yourself that data can help a business thrive? Here are three benefits that might make you think it can.

It can improve efficiency.

Continue reading "3 ways data can evolve your business" »

Get your brain in shape!

Shutterstock_1461408071The busy season is on the horizon, and many practitioners are preparing their firms to meet the demands. But are you getting yourself mentally ready for the fast-paced days ahead? Let’s look at some mental tune-up steps to take before the season begins.

Challenge yourself.

Sharpen your mind with quizzes and brain teasers. You can test your knowledge at many websites. For example, the site for the TV game show “Jeopardy!” challenges you with 12 clues every day that weren’t used on the show. In addition, many daily trivia apps focus on general knowledge or specific areas, such as sports or movies.

Continue reading "Get your brain in shape!" »

Embrace an attitude of gratitude for well-being in your career

Shutterstock_1296335452 “Gratitude is not only the greatest of the virtues, but the parent of all of the others.” — Cicero

If someone bumps into you and knocks your full cup of coffee onto your shirt, who’s to blame for the mess? You are. Why? Because you had coffee in your cup.

This story from Thich Nhat Hanh shows that while it may be easy to blame external circumstances for our experiences, it is what we hold in ourselves that we spill out into the world. We all face circumstances that make it easy to hold negative emotions in our cups.

Continue reading "Embrace an attitude of gratitude for well-being in your career" »

3 perks of working for yourself

Shutterstock_487666249In today’s ever-evolving job market, there are plenty of new opportunities to work for yourself. Whether it’s freelancing, entrepreneurship or gigs — the list goes on. Actually, seven in 10 the young adult job-seekers the AICPA recently surveyed claim that being their own boss is more valuable than the job security of working for someone else. If you’re thinking of branching out on your own, you’re not alone. 

Not sure if you’re ready to take the plunge? Consider these three perks of working for yourself.

Continue reading "3 perks of working for yourself" »

How a kid’s allowance can teach money management skills

Shutterstock_190423622Teaching children about money management is a big job for parents, and there are many ways to go about it. Money talk often starts by paying an allowance. According to new research from the American Institute of CPAs (AICPA), two-thirds of parents (66%) give their child an allowance at an average of $30 a week. An allowance is just part of a larger conversation about effective financial management. Parents must make sure the lessons sink in. The good news is that nearly half of parents (49%) say they take time to teach their child about money at least once a week. However, nearly a third (32%) say they only teach their children about money no more than once a month, including the 7% who admit they never teach their kids about money.

Continue reading "How a kid’s allowance can teach money management skills" »

Advice from a peer reviewer: Documentation missteps to avoid

GettyImages-157399946In my 25 years as a peer reviewer, I’ve reviewed thousands of audits from a variety of firms. You may be surprised by how often I see errors related to a fundamental audit step: documentation.

Audit documentation is important to get right because it provides evidence to support your audit opinion. It’s also crucial for auditors to document their work if they are going to comply with generally accepted auditing standards (GAAS).

I’ve found that several documentation missteps trip up auditors more than others. Keep reading to find out what these errors are and how to avoid them.

Continue reading "Advice from a peer reviewer: Documentation missteps to avoid" »

Tax tops the list of best jobs. But wait — there’s more

DifferentA day before my meeting with Brooke Salvini, CPA/PFS, she receives a serendipitous note from one of her clients:

Thank you so much for your genuine way of being. You create such an atmosphere of peace, acceptance, and sincere interest in your work and in individuals. It’s just so clear you care. You’re appreciated by me. Please know you make such a difference in my life…

I call this note “serendipitous” because Brooke and I are scheduled to discuss the results of a recent survey published by Glassdoor and popularized by an article in Barron’s. The study reveals that tax managers have the best job in the United States — a claim supported by several measures including median pay, upward mobility and job availability. The study also echoes a popular notion championed by the AICPA — that automation and other technologies are untethering tax professionals from data entry and other repetitive accounting functions, allowing them more time to forge stronger relationships with clients.

Continue reading "Tax tops the list of best jobs. But wait — there’s more" »

AICPA finds public accounting hiring model shifts

Aicpa-2019-trends-image-insightsThe AICPA recently released the 2019 Trends in the Supply of Accounting Graduates and Demand for Public Accounting Recruits report. The report shows that the accounting profession requires new skill sets because of the rapid advancement of emerging technology, especially in data science and analytics. This is changing who we do business with and how we do it. As a result, non-accounting graduates make up about 31% of all new graduate hires in public accounting — an increase of 11 percentage points from 2016 to 2018.

Accounting graduates and newly licensed CPAs must have the skills and expertise to support the growing technology needs. One of the ways the AICPA seeks to address this trend is through the CPA Evolution project, in partnership with the National Association of State Boards of Accountancy. This project strives to ensure that CPAs can support an accounting profession that plays a critical role in protecting the public interest.

Continue reading "AICPA finds public accounting hiring model shifts" »

New business challenges call for CPAs to take on new roles

GettyImages-485207391Many factors have contributed to vast changes in the corporate reporting landscape in recent years. These include accounting standards changes such as revenue recognition, leases, and credit losses. However, it’s widely recognized that financial statements and financial information alone may not tell the whole story when evaluating businesses. What do these changes mean and how can CPAs take a leadership role?  

Surveying the landscape

Continue reading "New business challenges call for CPAs to take on new roles" »

Developing a resilient staff who’s ready for anything

Shutterstock_125165846Five years ago, could you have predicted the challenges you and your team would face in 2019? And if you had a crystal ball, what challenges would you see approaching over the next five years? The AICPA’s Private Companies Practice Section (PCPS) team asked firms of all sizes to predict their top challenges between now and 2024 in the 2019 PCPS Firm Top Issues Survey. They say they’d be most affected by staffing, emerging technologies, competition, changing client needs and the regulatory environment within the next half-decade.

Continue reading "Developing a resilient staff who’s ready for anything " »

3 signs your client’s investments aren’t tax friendly

Investments blogYou know a lot about your tax clients — their jobs, their kids’ names, what kind of cars they drive — and you know even more about their finances. Most of the time, your clients are happy to share their complete financial lives with you. But, occasionally, when delving into the numbers, you’ll uncover financial moves you didn’t know about. Often, those moves involve their investments.  

You may be hesitant to talk to your clients about their investments. But remember, proactive conversations about all the financial issues affecting them are part of a CPA’s job. In addition, talking about investments as a part of their entire financial picture is a great way to start planning conversations — especially as we head into year-end. Not to mention, this is an added chance to cement your relationship as their trusted adviser.

Continue reading "3 signs your client’s investments aren’t tax friendly " »

What the current political environment means for CPAs

Elving Blog ImageRon Elving is a senior editor and correspondent for NPR’s Washington Desk. Ron delivered the keynote address at this year’s AICPA Governmental Accounting and Auditing Conference. We sat down with him to get his insights on what’s going on in Washington and how it affects CPAs.

What would you say are some of the legislative and political issues that CPAs should be following? What issues will most affect them?

Continue reading "What the current political environment means for CPAs" »

4 strategies to attract and retain female talent at your firm

Shutterstock_1022439985Did you know one in five women say they’re the only woman in the room at work? If you’re like me, unfortunately, you’re not too surprised by this information. Professions like finance & accounting and tech spaces have been known to have a harder time attracting and retaining female talent.  Yet, companies that have a higher percentage of female leadership have been proven to excel. A report released by Credit Suisse states that companies that have women making up at least 15% of senior management are 50% more profitable than those where less than 10% of senior managers are female. So, here are four strategies that will help you attract top female talent to your firm and retain them, too.

Continue reading "4 strategies to attract and retain female talent at your firm" »

3 steps to prep for the new EBP audit standard

Shutterstock_314921831Last month, we issued a new statement on auditing standards (SAS) for employee benefit plan audits, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA. The SAS is designed to make the auditor’s report easier to understand and more relevant, leading to improved EBP audit quality.

If you perform financial statement audits of EBPs subject to ERISA, you’ll want to carefully review the changes and start planning for implementation well before the effective date

Here’s some advice to get you started.

Continue reading "3 steps to prep for the new EBP audit standard" »

8 cybersecurity resources you literally need right now

GettyImages-1086728780Suffice to say, it’s not been a good week for the 5th largest U.S. credit card issuer. This week, Capital One was hacked in what’s being called one of the largest data breaches in history. A lone hacker gained access to more than 100 million American and Canadian customer accounts and credit card applications. The data theft exposed 140,000 social security numbers, 1 million Canadian Social Insurance numbers and 80,000 bank account numbers, among customers’ other personal data. Capital One estimates the breach will cost them between $100M and $150M in 2019 on customer notifications, credit monitoring, technology costs and legal support.  And this does not include potential reputational damage or political and regulatory actions, including possible penalties. Capital One’s stock also plummeted 6% overnight.

Continue reading "8 cybersecurity resources you literally need right now" »

4 ways to get your firm beach-ready this summer

GettyImages-694005116The coming of summer means longer, lazier days filled with outdoor fun. But once we’ve packed away the thick wool and sleek leather jackets that defined our winter existence, we’re often faced with an unpleasant truth: months of indoor living have left us feeling unprepared for outdoor activities like beach volleyball and surfing. And many times, a long winter may have left your firm a little out of shape, too.

Whether the barely managed chaos of tax season forced you to put off the exercises that would have helped keep your firm… well, firm, or the rapid approach of October has you procrastinating in getting to your firm’s self-care, summer is a perfect chance to get everything in shape and ready to show off.

Continue reading "4 ways to get your firm beach-ready this summer " »

5 principles for evolving CPA licensure

GettyImages-171282691What does the CPA of the future look like? Does that person need the same skills and competencies CPA licensure requires today—or should changes be made to expand the pipeline of talent the profession needs for the future?

As technology continues to change the services we perform and the way we deliver them, the National Association of State Boards of Accountancy (NASBA) and the AICPA are exploring whether initial CPA licensure requirements need to change to be more inclusive of those who have expertise in technology and analytics. You may have read about our CPA Evolution initiative in a blog post I wrote in January or a follow-up post I wrote in May sharing what CPAs had to say about evolving licensure.

Continue reading "5 principles for evolving CPA licensure" »

3 tips to help your clients with revenue recognition implementation

GettyImages-155160817Summertime is finally here! But before you hit the beach, head to your clients’ offices and make sure they are ready to adopt the Financial Accounting Standards Board’s (FASB) accounting standard on revenue recognition, issued as FASB ASU 2014-09 with subsequent amendments.

Public companies adopted the new guidance in 2018, and soon private companies will get their turn.  The guidance is effective for private entities in 2019 for annual reporting periods, and in 2020 for interim periods.

Continue reading "3 tips to help your clients with revenue recognition implementation " »

New AICPA Chair focuses on the profession’s leap into the future

William_Reeb_1044In May 2019, Bill Reeb, CPA/CITP, CGMA, assumed the role of Chair of the American Institute of CPAs (AICPA). He also serves as the Vice Chair of the Association of International Certified Professional Accountants (the Association). We asked him a few questions to help you get to know him and his vision for the future of the profession.

You can also watch the video of his AICPA inaugural address.

1. Congratulations on becoming the 106th chair of the AICPA! As you look ahead, what do you see as the biggest opportunity for the accounting profession?

The digital era has swept in a blistering pace of change that’s transforming the world around us. The change is not incremental — it’s exponential. And in these rapidly changing times, we find our greatest opportunity.

Our clients and employers need us more than ever to help them navigate increasing uncertainty and complexity. To seize the potential, we must take leaps, not steps. We must race to the horizon of possibility. Go where there has been no footpath before us to follow. Become comfortable with being uncomfortable.

Continue reading "New AICPA Chair focuses on the profession’s leap into the future" »

5 things you need to know about the new auditor reporting standards

GettyImages-172342448You may have heard that we issued a new auditor reporting standard effective for audits of financial statements for periods ending on or after December 15, 2020. The standard was designed to enhance the relevance and transparency of the auditor’s report. One key change is that with the new standard, the auditor’s opinion comes first. It’s like opening a box of Cracker Jack at a ball game and seeing the prize right on top. No need to fish through the rest of the good stuff in the box to find it.

The new Statement on Auditing Standards Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, known as SAS No. 134, contains four sections that replace AU-C Sections 700, 705 and 706. There’s also a new section: 701 in the AICPA’s Professional Standards.

Continue reading "5 things you need to know about the new auditor reporting standards" »

Find value in what you love: One tax CPA’s value pricing story

Shutterstock_200540525In 2006, Dominique Molina, CPA, had a revelation: she was working too much.

It was busy season, and like many nights, she was working late from her home office. As the owner of a successful tax firm in San Diego, she felt a great pressure resting on her shoulders.

In a laser-focused, deadline-driven push to the end, her 3-year-old son put everything in perspective.

“My son came into my office and started to ask me a question,” Molina remembered. “But he stopped himself and said: ‘Never mind. I’ll go ask Dad.’ I was crushed.”

Continue reading "Find value in what you love: One tax CPA’s value pricing story" »

Demystifying unicorns: How startup valuations really work

Shutterstock_386762398Near daily headlines tout the massive valuations of startup companies and their potential public offerings. Some of these entities are valued well into the tens of billions of dollars. Private market investors continue to pump money into technology-based companies with the hope of cashing in on the next unicorn—rare startups valued at more than $1 billion.

At the same time, many of these companies have yet to produce positive net income, with some reporting growing quarterly losses in the millions of dollars. What’s more, some of these organizations are lacking clearly defined plans for how to pull a profit from their operations.

Continue reading "Demystifying unicorns: How startup valuations really work" »

Cookie Consent Banner

Subscribe

Subscribe in a reader

Enter your Email:
Preview

CPA Letter Daily