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. 

In the News: Accountant Named a Top Career for Women

More Magazine named ‘accountant’ as one of the top ten careers for women who wish to balance a career and a personal life. “Younger people are saying, ‘Yes, I want to telecommute or take a two-year sabbatical and come back where I left off’—and providing these options is helping employers attract and retain talent,” says Mary Bennett, a member of the AICPA. Beyond the possibility of work/life balance, the article noted that the CPA credential also provides the flexibility to work in a field you're passionate about and move among a wide range of industries, since businesses in all sectors need accountants.

Creating a Brighter Future for the Nation’s Children

The Jump$tart National Educator’s Conference brought together K-12 personal finance public and private school teachers from 46 states in Washington, DC, this weekend.  The annual event highlights tools, resources, information and support for teaching personal finance in the classroom and includes networking and peer-to-peer sessions, as well as workshops and roundtables on advocacy, curricula and personal development.  As the AICPA’s representative on the Jump$tart Board of Directors, I was fortunate to attend this conference, share the AICPA’s financial literacy resources and learn more about the successes and challenges these educators face.

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.

Stick with Clients You Can be Grateful For

Now that last year’s tax returns are done, it is time to start getting ready for next tax season. This includes making sure you get enough CPE hours, plan engagement letters, review office processes and reconsider your fees.  It also is a great time to review your client list.  I attended a 1040 update seminar several years ago where the speaker made an interesting suggestion:  Let each person on your staff recommend (with justification) one client to be fired each year.  And be sure your receptionist weighs in!

Where do CPA Exam Research Questions Come From?

So, how well do you know the Financial Accounting Standards Board Accounting Standards Codification? Can you recite it from beginning to end without missing a beat? Is committing the standards to memory even a reasonable or practical expectation? A similar question posed one of the primary challenges that led to the development of research questions on the U.S. CPA Exam.

In a periodic assessment of accounting practice known as the Practice Analysis (1999), the AICPA CPA Exam team found that accounting references were becoming increasingly lengthy and complex, and were also available in an electronic format. Essentially, in the real world, CPAs were only memorizing sections of the standards that they used on a daily basis and used an electronic search to find any additional information they required. At the time of the 1999 Practice Analysis, the CPA Exam was still in pencil and paper format, so testing the application of accounting references that reflected real-world accounting practice posed an obvious challenge for CPA Exam developers.

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.

AICPA Unveiling Easy-to-Read Code of Professional Conduct

Three years ago the AICPA’s Professional Ethics Division embarked on a new project aimed at restructuring the AICPA’s Code of Professional Conduct into a logically structured, topical format. The concern was that the Code of Professional Conduct could at times be difficult to navigate as many provisions were scattered throughout and didn’t follow an intuitive order. The Ethics Codification Project, as it has been dubbed, also provides an opportunity to evaluate any guidance that lies outside the Code of Professional Conduct and determine whether to propose that some of it be made authoritative.

The Professional Ethics Division and Professional Ethics Executive Committee also continues to work on converging the AICPA’s Code of Professional Conduct with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants. A requirement to being a member of the International Federation of Accountants is that no member body should have standards that are less restrictive than the IESBA’s Code. As the Ethics Codification Project continues, the PEEC will consider those standards that need to be changed to meet the minimum IESBA standard. Convergence is not expected to lower standards, but rather where appropriate, make standards more robust or provide guidance where guidance is lacking.

Ultimately these projects will create a user-friendly and intuitively arranged Code of Professional Conduct. Additionally, we expect the codification will be available in a web-based platform, which further enhance the quality and ease of use to the Code of Professional Conduct, as well as allow users to browse by topic and perform searches on specific information.

This is a long-term project though, so don’t expect to see the updated Code of Professional Conduct immediately. In fact, we don’t expect to see an exposure draft until the Spring of 2012 with approval and issuance estimated one year later in the Spring of 2013. For the time-being, convergence changes are being exposed for comment and the latest version of the Code of Professional Conduct can always be found on AICPA.org.

Ellen Goria, CPA, Senior Manager - Professional Ethics Division, American Institute of CPAs. Ellen staffs various task forces that develop independence and behavioral guidance for exposure to membership. She also assists with interpreting the Institute’s Code of Professional Conduct by providing guidance to membership, state CPA societies and other interested parties on ethics and independence issues. In her role, Ellen also works closely with other AICPA teams to ensure publications accurately reflect the AICPA’s current ethical positions.

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.

 

ASB Reaches Major Milestone in Clarity Project

In 2004, the AICPA Auditing Standards Board began work to clarify Statements on Auditing Standards, Statements on Quality Control Standards and Statements on Standards for Attestation Engagements to make them easier to read, understand and apply. At the same time, the ASB undertook a project to converge its standards with those issued by the International Audit and Attestation Standards Board.

Last week, the ASB announced it has achieved a major milestone in the Clarity Project with the issuance of SASs Nos. 122–124. Together with the issuance of SASs Nos. 117-120, 44 (out of 47) clarified SASs have been completed and issued.

Most Clarified SASs become effective for periods ending on or after Dec. 15, 2012. For exceptions to this effective date, view the AICPA’s resource which highlights those standards with a different effective date. This is the first complete recodification of U.S. generally accepted auditing standards since 1972.

While the main goal of the Clarity Project is make U.S. GAAS easier to read, understand and apply, another goal was to converge with international standards while avoiding unnecessary differences with the auditing standards issued by the Public Company Accounting Oversight Board. Some differences are necessary as the auditing standards are used for audits of public companies while the SASs apply to audits of private companies.

So what does the Clarity Project mean for you?

Independent Board is Needed for PCGAAP

For quite a while now, decades in fact, the accounting profession has been discussing the problems faced by private companies and the users of their financial statements because of a lack of relevance and unnecessary complexity in too many places in U.S. GAAP. The Blue Ribbon Panel on Standard Setting for Private Companies made recommendations earlier this year that gave us a greater sense of hope that real change was on the way. The Panel, formed by the AICPA, the Financial Accounting Foundation and the National Association of State Boards of Accountancy, came out with two significant recommendations that would permanently change private company financial reporting. One is differences in existing and future GAAP where warranted; the other is an independent board to set those differences. There is general consensus on the former; I want to focus on the latter.

In the News: IRS Tax Preparer Fees

Patrick Temple-West at Reuters reports that the IRS is getting ready to impose the first comprehensive regulation of the industry's 730,000 practitioners who prepare tax returns. The IRS estimates the licensing fee for some tax preparers at between $250 and $275, which includes one-time fees to take a competency exam and be fingerprinted. (CPAs are exempt from the exam and fingerprint requirement and fees. For decades, CPAs and other credentialed preparers have been subject to state regulation as well as IRS rules for ethical practice and procedures, but many others were not.) The AICPA supports tax preparer regulation, but has expressed concern over the costs of requiring supervised non-signing staff at CPA firms to be fingerprinted "We have serious concerns regarding the level of burden that the user fee regulations will place on CPA firms, primarily small- and medium-size CPA firms," said Patricia Thompson, who chairs the AICPA Tax Executive Committee. The IRS, which plans to finalize the new fees in coming months, recently said it was open to ways to mitigate costs

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.

The Savings Balancing Act

They say necessity is the mother of all invention. And if that’s true, there may be some bright spots in this dour economy of ours.

The U.S. Bureau of Labor Statistics offered insight last week into the amount of money households are spending. Last year, average expenditures dropped 2 percent, on the heels of a 2.8 percent decline in 2009. No surprise there. Consumers are in no mood to spend.

Dig into the numbers a bit deeper and you’ll see some interesting changes in how they’re spending. Expenditures on vehicle maintenance, for instance, rose 7 percent, while spending on vehicle finance charges dropped 14 percent. At the same time, public transportation expenses increased 3 percent. This could suggest, at least in part, that consumers are holding onto their current vehicles longer and exploring other, cheaper options for travel to offset higher fuel costs.

Both are smart moves from a personal financial perspective—especially if those behaviors stick.

But make no mistake, the continued overall decline in spending also highlights a real challenge. Consumers account for about two-thirds of economic activity. When they rein in spending, the ripple effects can be extensive, as evidenced by the current unemployment rate and other challenges we’re facing.  

Consumers need to save to protect their financial futures.  How do they balance that goal with our economy’s need for stimulation that spending brings? A recent Federal Reserve report (page 7) offered this statistic: Each one percentage-point increase in the savings rate is associated with a decrease in spending nationally of $100 billion. So what message should we be sending to consumers? In an economy with rising prices and declining spending, how do we help stimulate the economy while still encouraging saving? What advice do you give your clients and family?

Cheryl Gravis Reynolds, Director of Communications, Advertising and Brand Management, American Institute of CPAs. Cheryl oversees executive, member, international and state society communications as well as advertising and brand management and social media strategy. She also leads the CPA profession's award-winning financial literacy campaigns, 360 Degrees of Financial Literacy, and Feed the Pig, a public service advertising campaign with the Ad Council.  

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."

 

The Unknown Tax Break

A few years ago, President Obama decided to boost the economy by proposing the “Making Work Pay Credit” – a tax incentive intended to put money into people’s pockets.  The credit was “delivered” by changing withholding rates so taxpayers would get a little more cash in each paycheck.  However, it ended up frustrating some people because the withholding tables employers were provided did not always match the amount of the credit.

For example, a two-income family may have taken home an additional $1,200 but only qualified for the maximum credit of $800, resulting in a family possibly owing $400 more at tax time.  Similar problems existed for single people with multiple jobs because withholding was reduced by each employer, even though they could only get one $400 credit.  Dependents with jobs also had issues because their withholding was reduced even though they were not even eligible for the credit.

Persistence Results in Protecting Taxpayers

It was a five-year battle, but working together the AICPA and state CPA societies were gratified  when President Obama on Sept. 16 signed into law a bill that includes a provision to prevent the issuance of new patents on tax strategies. We asked so many of you to send letters, and state CPA societies and members responded each time. Details on the harm tax patents could cause are discussed in this AICPA Insights blog post.

Tax strategy patents now become one of only a handful of patent types that the Patent & Trademark Office is prohibited from issuing, which includes medical procedures, nuclear technology and, now, tax strategies. 

I would like to thank each of the AICPA staff, members, states, committees and others who participated in this advocacy effort, which marks a huge victory for both the public and the CPA profession.

It is important to note that existing tax strategy patents remain in effect so tax practitioners still need to remain vigilant. Patent applications pending as of Sept. 16 were discontinued and no new applications are allowed.

This victory shows the positive results that stem from collaborative and persistent efforts when it comes to getting legislation enacted.  Congratulations to those who played a part in this process. On behalf of taxpayers and the profession, I thank you.

Barry C. Melancon, CPA, President and CEO, American Institute of CPAs.

 

In the News: PCGAAP, Accounting Jobs, Sustainability

Happy Friday, dear readers – it has been a while. My weekly news wrap up post will now appear bi-weekly, with a post which spotlights interesting content from around the web appearing on alternate weeks. Should you want more frequent updates of news related to the accounting profession, please consider following AICPA Media Relations on Twitter @AICPANews or subscribing to the Media Relations RSS feed.

Now let’s get to the news, shall we?

One of, if not the most, pressing issues facing the accounting profession is the debate over the creation of separate reporting standards for private companies. The chorus of voices on one side of the issue got a lot louder this week with the announcement that thirty-three state CPA societies have joined the AICPA in calling upon the Financial Accounting Foundation to create a separate standard setting board for privately held companies. Michael Cohn of Accounting Today writes that AICPA advocates a separate board for private company accounting standards independent of the Financial Accounting Standards Board, under the oversight of the FAF. AICPA Chairman Paul Stahlin, CPA, said “after over 30 years of research by numerous diverse and independent groups, the only conclusion is that an autonomous standard-setting body under FAF to set differential standards for privately held companies must be created.”

New Score Release Timeline for the CPA Exam

Starting in the fourth quarter of 2011 the U.S. CPA Exam will begin releasing scores earlier and more predictably. Initially this may not seem very interesting; however, the change will mark a major shift in the U.S. CPA Exam experience and the strategies that prospective CPAs employ as they work toward passing the exam.

With the transition from a pencil and paper exam to the computerized format in 2004, came a shift in the strategies and expectation of CPA candidates. In particular, the ability to take one exam section at a time and nearly year-round scheduling opportunities has dramatically changed the way CPA candidates prepare and plan for the exam. After the transition to computer based testing, one of the most common requests received from CPA candidates is for faster score releases so they can start planning the next steps in their test taking process.

CPAs: Professional Development Gurus

CPAs are known for providing sound guidance. We are, after all, called trusted advisors for a reason —whether our area of knowledge is related to tax planning, estate planning, spending and saving or making business decisions.

Over the last year, I’ve found my CPA colleagues are a particularly good source of advice regarding professional and personal development. Since the AICPA launched its BusIndNews monthly newsletter in the fall of 2010, readers have been writing in to provide their career profiles, insights into how to advance within an organization, tips on how to be the go-to-person in your office, how to find professional development opportunities and how to enjoy a happier, more successful or more balanced career.

The profiles and tip articles your colleagues have submitted demonstrate how interesting and diverse the work of a CPA is. Most important of all, there’s a running theme in all of the submissions we’ve received: CPAs love their jobs and are enthusiastic about making them more interesting, challenging and fulfilling.

Do you have a story to share or any tips to help your fellow CPAs in personal or professional development? Tell us how you go the extra mile at work, maintain a better work/life balance or motivate your staff. We’d love to read about it!

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

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 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.

Tips for a Financially Fit Fall

Many would agree that a significant amount of what we learn is learned at home. In fact, almost 50  percent of those who closely monitor their finances say that they learned about personal finance from their parents or at home. Yet, only 34 percent of parents have taught their teen how to balance a checkbook, and 93 percent of parents with teenagers report worrying that their children might make financial mistakes, such as overspending or living beyond their means. While awareness of the need for greater financial education has grown in recent years, there is still work to be done.

Here are some tips to share with your family and clients to strengthen their financial understanding.

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.

Future Accountants Leverage Competition as Career Prep

Last week’s CPA Success post “Labor Day 2011: Laborers Wanted” cited Rick Telberg’s CPA Trendlines blog indicating that 34,800 more jobs in accounting and bookkeeping were posted in August 2011. Even as the market continues to struggle and the outcome of President Obama’s jobs plan remains unknown, this is still good news for the profession. In fact, it puts pressure on the AICPA, educators and other accounting influencers to ensure that there are skilled candidates to fill these positions and the many more that will be available when the economy finally rebounds.

The AICPA is rising to this challenge and encouraging young people to learn more about the accounting profession.

The Incredible eXtensible Business Reporting Language

Image via Wikipedia

Back in 1998, Charlie Hoffman, a CPA, embarked on a quest to revolutionize the way the world creates and shares business information. Based on eXtensible Markup Language, a new document markup language at the time, the eXtensible Business Reporting Language was created. Hoffman took his idea to the AICPA, which funded and championed the project. By 2000, XBRL 1.0 was published and interest had grown beyond the borders of the U.S. into the international community. Countries from Australia to Spain were signing up and applying XBRL to form better business information.

In the News: Economic Outlook, Outstanding Govt CPA

Earlier this week, the AICPA released the results of the 3^rd Quarter Economic Outlook Survey, which showed a decline in optimism among CPA’s who serve as chief financial officers and other high-ranking financial decision-makers. WRAL Tech Wire reported that AICPA found that 61 percent of the respondents think it's "somewhat" or "very" likely that the U.S. is heading into the second trough of a double-dip recession. The News & Observer noted in their coverage that "turbulence in the political and economic environment eroded the sense earlier this year that a recovery was taking hold," according to Carol Scott, AICPA vice president of business, industry and government. Accounting Today pointed out in their article on the results that only 9 percent of CPAs in executive positions expressed optimism about the U.S. economy in the third quarter, down 24 percentage points from the 33 percent who said they were optimistic in the second quarter.

Remembering the Heroes of 9/11

Ten years – a decade in time – but with memories embedded so vividly in our minds, it is as if it could have been yesterday. Our thoughts are still with the 3,000 Americans who were killed, and the more than 6,000 who have died in ensuing military actions. Our country came together after September 11, with people of all colors and political beliefs flying American flags outside their doors. Candles lit our windows; yellow ribbons hung from our doors and mailboxes, and tears streamed from our saddened and disbelieving eyes.

Having a view of the Statue of Liberty and downtown Manhattan from my Jersey City apartment where I grew up, the skyline has always been a natural part of my life.

The skyline morphed over the years and after the early 1970s, the twin towers became the dominant focal point to the breathtaking view of downtown Manhattan.

Death and Taxes: Not Quite as Certain as You Think

In 1789, Benjamin Franklin now famously observed in a letter to French physicist and writer Jean Baptiste Leroy, “Everything appears to promise that it will last; but in this world nothing can be said to be certain, except death and taxes.”  However, 222 years later, Americans have much uncertainty with taxes, particularly those related to death. 

One such tax mystery that is still unraveling is the estate tax.  It started over 10 years ago with the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), which lowered tax rates and increased exemptions on estates starting in 2002 through 2009, until the tax was finally repealed in 2010.  Then, unless a later Congress took further action, the higher pre-EGTRRA rates would return starting in January 2011.

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.   

In the News: Women to Watch, Financial Literacy, CPE

A recent AccountingWEB article spotlights the Women to Watch Program, an effort of the AICPA’s Women’s Initiatives Executive Committee, which will be honoring women who have made significant contributions to the accounting profession and to the development of women. Candidates are nominated by their peers and firm. Award winners will be honored at events sponsored by their CPA societies. "The women who are selected for the Women to Watch awards have made some outstanding or unique contribution to the profession. They have been successful in integrating their personal and professional lives. They are more visible because of the awards. They become role models. They prove it can be done," added Yasmine El-Ramly of the AICPA.

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

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.

We Heard You Loud and Clear on the Due Dates Issue

Every voice is important to us.  So when the AICPA heard from so many of you a few years ago about the problems associated with the late receipt of Schedules K-1, we mobilized to come up with a solution.

After considerable dialogue, the AICPA submitted a proposal to Congress in October 2010 suggesting that the due dates for Forms 1065, 1120, 1120S, 1041 (along with some others) be shuffled around a bit--with the understanding that change can be difficult.  We know how important and ingrained return due dates are to tax professionals. Because members’ practices are so diverse and varied, and most members tend to have general practices, our volunteer leadership wanted to make changes that benefited the tax filing system as a whole.  We all understand how challenging the filing season can be.

What's Your Financially Fit Story?

In honor of its 125th anniversary in 2012, the AICPA will publish a book, tentatively titled Raising Financially Fit Families, to help families better understand their finances with lessons from the experts: CPAs. Be a part of this unique publication by submitting an essay highlighting a personal or professional experience you had in on helping others, whether a family member or client, build a brighter financial future.

CPAs’ stories and lessons about savings, planning for big-picture purchases, paying for college and teaching children healthy and life-long money habits will be the centerpiece of the AICPA’s first foray into the consumer book market. Raising Financially Fit Families will be edited by New York Times best-selling author and National CPA Financial Literacy Commission member Sharon Lechter, CPA, whose books include Three Feet from Gold and Rich Dad Poor Dad as well as the newly released Outwitting the Devil. Each selected submission will include the author’s name, company or firm and state CPA society. Visit aicpa.org/financialliteracy for more information, sample essays and details on how to submit an essay for Raising Financially Fit Families.

Melora C. Heavey, AICPA Staff.Melora manages the CPA profession’s volunteer effort, 360 Degrees of Financial Literacy, and the award-winning public service campaign, Feed the Pig.  She serves as the staff liaison to the National CPA Financial Literacy Commission, the leadership body and primary spokespeople for 360 Degrees of Financial Literacy.

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?

In the News: Financial Literacy, Mobility, CPA Exam

The Times Daily in Alabama spoke with Mackey McNeill, CPA/PFS, and member of AICPA’s Financial Literacy Commission, about preparing college students to handle the responsibility of managing their own money. Without an understanding of the impact of their decisions, young adults can easily fall victim to overwhelming credit card debt and get behind on their student loan payments. McNeill says that one of the best ways to avoid that outcome is to begin teaching children about money long before they leave for college. “Our patterns about money are set before college, so if your kids are savers or spenders, you'll know before then; however, that doesn't mean you can't become better aware of the behavior and make difference choices,” she said.

“Who’s on First” with the Best Deficit Reduction Idea

Well, it seems as if deficit-reduction watching has nudged baseball out as America’s favorite pastime!!  With a full count on the debt ceiling, Congress came together on August 2 to strike out the looming debt ceiling cap and hit a $1 trillion in spending cuts.  At the same time, lawmakers also agreed to come to grips with the monumental deficit.  The agreement created the “Dirty Dozen,” a bipartisan Joint Congressional Committee that is charged with moving forward additional deficit-reduction ideas of at least $1.5 trillion by November 23, 2011. Automatic, across-the-board spending cuts will ensue if Congress fails to come up with a specific plan by the end of December.

So what’s still in the field of play of ideas? 

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%