04 2024 CPAmerica Advantage Newsletter

News from your accounting association

Revolutionizing talent - An inside look at outsourcing solutions

In today’s ever-changing business environment, many CPA and advisory firms are turning to outsourcing as a way to increase efficiency and allow them to focus more on their clients. One such provider is alliantgroup, offering talent solutions through alliantTALENT, featuring a range of services to help companies find top talent, including executive search, direct hire, and contract staffing solutions for the accounting and finance industry.

Stephano Slack LLC (Stephano Slack), headquartered in Wayne, Penn., has about 85 full-time employees at their four locations and has been utilizing outsourced talent solutions from alliantgroup in their Audit Department for the last four years and their Tax Department for the last three years.

Michael Stephano, managing partner of Stephano Slack, shared that their firm has found great benefits from working with remote teams, mainly in creating more bandwidth for their current employees to serve existing clients and take on new clients.

were juniors or seniors just entering the information.”

In January of this year, Stephano Slack merged in a New Jersey-based firm with two offices. Stephano shared that this transition would not have been as easy without the use of alliantgroup’s resources.

“The ability to utilize alliantgroup during this merger allowed us to take on their work and give them some additional bandwidth,” said Stephano. “They just didn’t have the capacity to meet their client needs, so we were able to send out their A&A work to alliantgroup, supervised by our staff, so the new partners and seniors were freed up.”

April 2024 IN THIS ISSUE:

► Revolutionizing talent - An inside look at outsourcing solutions

► Preferred Provider Spotlight - LumiQ

► Upcoming Regional Events

► Member News

► CPAmerica Insights –Art Winstead

moving along have also proven to be beneficial.

When vetting outsourced talent solutions, Stephano shared that his number one concern was security protocols and what was being done to ensure client data was secure. Also of concern was making sure the provider had a good service product and a commitment to delivering excellent service.

Reflecting on their experience over the last four years, Stephano mentioned that you can’t begin this process and assume that it’s all going to work perfectly in the first year. If you’re committed to the work, providing feedback and building relationships with team members, you can see success with this model.

“They allowed us to get out of the business of data input and actually provide more value to our clients in terms of higherlevel thinking and strategic planning,” said Stephano. “Clients also have access to better conversations with our staff, and our staff are able to review documents more quickly than they would have if they

Although the onboarding process with alliantgroup was relatively simple, Stephano shared that it did take some time to get them fully integrated into the Stephano Slack team.

“We were up and running quickly with our CCH platform, but it took a full tax season, if not longer, for them to really become part of the Stephano Slack family and to work with them as team members rather than subcontractors,” shared Stephano.

To ensure success, Stephano stressed the importance of providing real-time feedback to the outsourced team members and immersing them in the culture of your firm. Communication is a key element, ensuring you have regularly scheduled meetings and open channels of communication. Getting partners’ buy-in and assigning a dedicated power user or champion on staff for each service line to ensure things continue

To learn more about Stephano Slack’s outsourcing, please contact Michael Stephano at mstephano@stephanoslack. com.

alliantgroup developed a checklist of recommendations for CPAmerica member firms interested in pursuing a remote talent solution. Please scan the QR code below to access this checklist.

Interview with Michael Stephano, CPA Managing Partner, Stephano Slack LLC

Michael Stephano

Preferred Provider Spotlight

LumiQ

LumiQ is a podcast platform where engaging conversations with business leaders from companies such as Nike, Google and Microsoft count as verified CPE.

CPAmerica members can experience enjoyable CPE

Talent Attraction & Retention

LumiQ is an opportunity to differentiate your firm in a challenging hiring market by offering a learning medium that younger generations seek.

Learning, Not Just Compliance

Too often, staff view CPE as a compliance check box each year. With LumiQ’s engaging content and convenient medium, they will choose to learn all year long.

For more information, visit www.lumiqlearn.com/cpamerica or email Tanner Da Rocha at tanner@lumiqlearn.com.

Don’t miss the exciting opportunity to meet with peers and share best practices this summer at three great member-selected cities for this year’s regional partner meetings beginning with the Central Mountain/ West in Colorado Springs, Colo., overlooking Garden of the Gods, followed by Midwest/Northeast in Kansas City, Mo., the “Heart of America,” and wrapping up with the Southeast in peachy Atlanta, Ga.!

These meeting are open to any partners at your firm.

Central Mountain/West Coast Regional

June 6-7 | Colorado Springs, Colorado

Midwest/Northeast Regional Meeting

August 1-2 | Kansas City, Missouri

Southeast Regional Meeting

August 22-23 | Atlanta, Georgia

Specializing in audits, review, and compilation of commercial entities, Pannucci has demonstrated exceptional leadership as the head of TBC’s Construction Committee and as a valued member of the Firm’s Scheduling Group.

Kassouf promotes four employees, hires new manager, business advisor

kassouf promoted four team members, naming two new managers. Kassouf’s commitment to continuous improvement and personal effectiveness drove these promotions. “With these promotions, the median age of our manager group is 35. Through career mapping, innovative training, and mentoring, we give our team members the tools they need to thrive. Our young manager group shows that we are building the future strategically at Kassouf,” said Kassouf managing director, Jonathan Kassouf. Kassouf’s promoted managers include Ashley Hudson and Bridget O’Neal Both are Certified Public Accountants (CPAs), specializing in accounting and advisory. Kassouf also announced Anna Mooney returned to the firm as a manager in Kassouf’s Estate Planning and Administration Group. The firm also announced Mike Payne is Kassouf’s first business advisor. Kassouf has employed healthcare advisors for

LMC Advisors announces new

is thrilled to announce the Christopher Kotan, CPA, to partner in the firm. Kotan has been an invaluable asset to their firm, serving as a dedicated and loyal tax professional, demonstrating proactive leadership to their teams by overseeing the Tax Department and playing a pivotal role in the firm’s tremendous growth and success.

Throughout his tenure at LMC, Kotan has shown unparalleled dedication and expertise, particularly in his work with high-net-worth individuals and their family-run businesses. His industry specialties encompass a diverse range of sectors, including wholesale, retail, manufacturing and distribution, real estate, apparel, art, and professional services. Kotan’s deep understanding of these industries, coupled with his personalized approach, has consistently delivered exceptional tax services tailored to our clients’ unique needs.

JHM Certified Public Accountants joins Harting, Bishop & Arrendale (HBA)

Expanding its presence in East Tennessee, Top-500 Chattanooga CPA firm Jhm cerTified PuBlic accounTanTs (JHM) has merged in the well-respected CPA firm of Harting, Bishop & Arrendale (HBA) in Cleveland, Tenn. The combined firm will eventually operate under the name of JHM Certified Public Accountants, providing the same excellent personal service Cleveland companies and individuals have long enjoyed from HBA. “We were very familiar with the importance HBA placed on deep personal relationships with their clientele and are sincerely humbled and honored to expand on these relationships,” JHM managing partner Dean Krech stated.

“JHM was built on providing the highest level of service and our cultural match with HBA could not be better aligned. From my very initial meeting with partners Kelvin Bishop and Tommy Arrendale, it was clear that HBA epitomized JHM’s core values, and this

merger aligns perfectly with JHM’s intentions of further expansion in the Southeast.”

Wallace Plese + Dreher announces partner promotion

Wallace Plese + dreher (WP+d) promoted Hannah J. Oglesby, CPA, CFP, to partner. Oglesby joined the firm in 2017 as a tax supervisor, she was promoted to tax manager in 2018 and senior tax manager in 2021. Oglesby provides tax planning and guidance to private businesses in a variety of industries. She holds certified public accountant licenses in Wisconsin and Arizona and is a certified financial planner. Dedicated to fostering relationship, she has been instrumental in developing younger professionals in their careers.

Widmer Roel welcomes new audit manager

Widmer roel, a public accounting and business advisory firm headquartered in Fargo, N.D., welcomes Dayo Alimi, Chartered Professional Accountant (Canada) to the firm as audit manager. Alimi will be assisting the Audit Department of the firm and has expertise in audit and assurance services. Alimi has prior experience in public accounting and the private sector as a divisional controller and has over 10 years of experience. Alimi holds a degree in accounting with first-class honors from Oxford Brookes University in the United Kingdom.

Monroe Shine & Co., Inc. announces shareholder promotion

monroe shine & co., inc is pleased to announce the addition of Chris Hawkins, CPA, as an equity shareholder in the firm. Hawkins started his Monroe Shine career in 2006 as an accounting intern and is a valuable asset to the firm and its clients. Hawkins is the officer in charge of the firm’s electric and water utility clients. He also provides audit, tax and consulting services to various not-for-profit organizations and privately held businesses.

Nathan Pannucci

Christopher Kotan

Mike Payne

Hannah Oglesby

Ashley Hudson

Bridget O’Neal

Anna Mooney

Dayo Alimi

Chris Hawkins

education, the possibility of not having an audit committee in place can be their worst mistake. As a result of accounting and auditing scandals immediately prior, legislation from the Sarbanes-Oxley Act (SOX) created new policies, procedures, and legislation related to how audit committees were formed and implemented.

SOX was established to provide additional auditing and financial regulations for publicly traded business entities only and held committees to address the failures in corporate governance. While very appropriate for public business entities and the creditors, investors and regulatory bodies responsible for overseeing the financial reporting, audits and regulatory compliance, even those audit committees can struggle with a one-size-fits-all mentality. For a significant number of clients, the formula as to the cost and benefit would probably not fit.

So, what considerations are necessary to come to a beneficial conclusion, given the necessary cost of forming an audit committee? Typically audit committees are established for various reasons, including: addressing the risk of fraud; improving audit capabilities; strengthening internal controls; and to be used as a tool that increases accountability and transparency.

Incorporating the above criteria, the responsibilities of audit committees often include oversight of the external audit, oversight of the internal audit function, and oversight for internal controls and risk management. Once all criteria have been incorporated, a reporting entity determines if there is a need and is it cost beneficial to establish an audit committee. If so, what happens next?

Successful audit committees are created by a formal mandate from the governing board or a member-approved mandate of a nonprofit. Mandates include a variety of items and establish the mission of the committee, while also defining the responsibilities and activities that the committee is expected to accomplish.

The first step on the road to a successful audit

risks can be mitigated by applying selected provisions of SOX used in the public business entity environment to non-public business entities. It can be found that some state and local governments have adopted similar requirements to SOX.

There are advantages and disadvantages of all these approaches. An entity must evaluate how to work within their own governance structure for the best and most workable solution. The overriding responsibility of the audit committee is to provide oversight related to the significant risks associated with the financial reporting and operational results of the reporting entity. Also, the committee needs to work with management and internal and external auditors in identifying, implementing, and maintaining the appropriate internal controls that will reduce those risks to an acceptable level.

The cost of establishing and enforcing a level of zero risk tolerance is without question cost prohibitive. Here are some elements that contribute to that cost:

• The number, timing and content of audit committee meetings. Those are determined by the complexity and activity levels of the reporting entity.

• Frequency of audit committee meetings. It is suggested that committees meet at least three times per year, coordinating with the auditors for engagement planning and the completion of the audit. Committees for large entities with robust internal control systems and more complex financial reporting may meet monthly or even more frequently.

These meetings can be used to address the following:

• External auditors

• Confirmation of the annual financial statement and compliance audit, including scope and timing

• Ad hoc reporting on potential fraud or abuse issues

• Receipt and review of the final financial statements and auditor’s reports

• Opinion on the financial statements and compliance audit

• Internal controls over financial reporting and grants

• Violations of laws and regulations

• Reports from internal auditors

• Review of updated risk assessments over identified areas of risk

• Review of annual audit plan, including status of the prior year’s efforts

• Status reports of ongoing and completed audits

• Reporting of the status of corrective action plans, including conditions noted, management’s response, steps taken to correct the conditions, timeline for implementation and verification that the corrective action plan has been implemented

Audit committees should be given the resources and authority to acquire additional expertise if needed. Technical expertise areas include, but are not limited to accounting, auditing, operations, debt offerings, securities lending, cybersecurity, and legal services. Getting a number of these steps completed as soon as the audit committee is established will save time later.

While no audit committee or internal control system can guarantee that breakdowns will not occur, a properly established audit committee will demonstrate to all stakeholders, including management, that the reporting entity has taken steps to reduce risks to an acceptable tolerance level. Fraud studies have repeatedly shown that breakdowns in governance lead to fraud, waste and abuse.

While we cannot guarantee fraud will not occur, we can reduce risks with the goal that it will not happen on our watch.

Contact us at:

7555 W. University Ave. Gainesville, FL 32607 (352) 727-4070

www.cpamerica.org

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