Connections Mar Apr 2016

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Another year of staying connected to the profession.

Another year of amazing seminars and conferences.

Another year of advocacy in Montgomery and Washington.

it’s your move.

Go to ascpa.org on April 20.

One click and you’re a member for another year.

BUSINESS AND INDUSTRY 6 | Challenges in the Corporate World for CPAs

By L. Brent McClure, CPA 12 | Zoebelein on Tax 11 | Don’t Waste the Opportunity to Be Fresh Blood Posted by Caleb Newquist 12 | Corporate vs. Public Accounting: What are the advantages of each as a career?

16 | Should Your Auditor Prepare Your Tax Return?

by David McCann 30 | At the Nexus of Accounting and Software Technology 32 | Successful Negotiating in Corporate America 33 | AICPA Proposes Expanding Joint Venture with CIMA

DEPARTMENTS

INSIDE THE ASCPA

4 | Message from the Chair

11 | Gulf Shores CPE Cluster

8 | Member Profile: David Grizzard

19 | Accounting Connections Conference

26 | ASCPA 2016

20 | Business & Industry CPE Courses 28 | Report from the Diversity and Inclusion Committe

26 | Member News 29 | Classifieds 34 | Remembering

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MESSAGE FROM THE

cHAiRMAN W

ell, here we are once again…….in the heart of “busy season”. Actually, I have many accountant friends who bristle a bit upon hearing the term “busy season”. Those in public practice tend to do so because of the implication that they aren’t very busy from mid-April until January 1 of each year. Anyone who has ever walked that path knows very well that those in public practice tend to be relatively busy all year long in the exercise of their chosen profession. My accounting friends employed in industry tell me that they aren’t too fond of the “busy season” terminology either because they tend to be at their busiest during the first few days of every month with all of the duties of “close out” piled on top of their normal day-to-day responsibilities. The industry accountants, too, are a bit offended by the idea that they are, somehow, not working very hard for much of the year.

Maybe, as professionals, we are a bit too sensitive about that issue, but the feelings of professional accountants in both public practice and industry in that regard are certainly understandable.

Speaking of accountants in industry, I have found that many people, including some of our own members, do not realize the substantial commitment that the ASCPA has to that group of professionals. Many of you reading this article may be surprised to know that 32% of the ASCPA membership is made up of professionals with what we in our profession commonly refer to as an “industry” affiliation while 42% of the membership is employed in the practice of public accounting. The remaining 26% of our membership is made up primarily of professionals employed in education or government, as well as those who are retired. Were you aware that almost one of every three ASCPA members were individuals employed in industry?

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Clearly, with that number of industry professionals included in our membership the ASCPA must be committed to addressing the needs of those CPAs. In many areas, the issues that are of importance to our members in industry are no different from those of significance to our members in public practice. However, that is not always the case. The ASCPA staff is constantly working to identify exactly what our industry members need. In the area of continuing education, the ASCPA is making a serious attempt to offer a wider range of CPE opportunities designed to address the needs and wants of accountants in industry. Efforts are also being made to identify individuals with industry affiliation who are willing to serve in leadership capacities within the ASCPA, including serving on the board of directors.

Another example of the sensitivity of the ASCPA to the needs of our industry professionals is the dates of this year’s annual meeting (now known as the Accounting Connections Conference) in June. Some of us have heard from our members in industry that it is always difficult for them to attend the annual meeting because it is held during the first few days of June, which is the same time as their monthly closing cycle. The 2016 conference has been moved back a bit to June 9 and 10 in an attempt to address that issue. Moving it even deeper into June is always a possibility, but doing so risks getting into vacation season, which would be an issue to many of our members.

What I would like for all of our members to know, regardless of where you work, is that the ASCPA is committed to representing your professional interests.

The more you communicate with us, the more we will know exactly what those interests are. Let us hear from you!

Lowell

Challenges Corporate World in the

f o r c pa s

The role of finance is going through a major evolution. Over the past 10 years the role of corporate accounting departments, specifically the Chief Financial Officer (CFO) seat, has dramatically changed. Traditionally seen as number crunchers and report generators, the role of the department has expanded in many companies to include strategic business partner and advisor. The financial role is expected to drive accurate planning and analysis, optimize cash flow, and mitigate risk. The evolving CFO needs to hone their soft skills and spend time in the boardroom. This transformation creates new responsibilities and complexities, and it also requires a balancing act of limited support, resources, and responsibility.

Can we do more with less? Advances in technology have been instrumental in achieving this goal. However, many small and medium sized companies (SME) find it difficult to deploy resources to keep up with the latest technology. Many times the CPA inside the SME is the only CPA around, outside of the auditors, and as previously mentioned their plate is full. It can prove extremely difficult and sometimes disastrous to successfully implement a new ERP system alongside the daily workload. Even so, it is not impossible and a CPA in a corporate environment might be faced with this task several times. Think of it like this - no amount of business knowledge will make up for inaccurate numbers. You shouldn’t spend the day piecing together reports to find an

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answer. Allocate the necessary time and invest in the technology so you can allocate your time to other areas.

Can finance really become a business partner? Some CEO’s see the finance team as a few accountants who count beans, produce reports, talk with insurance companies, banks and regulators. It is up to the finance team to help bridge the gap by changing this mindset. Spend time with other managers and executives in your organization and view them as your customer. First you need to understand what your customer needs. For example: 1. What information do they require?

2. How often do they need this information?

3. Summary, detailed or both?

So that is easy enough, right? Hold on, let’s take it a step further and figure out not only what your customers (others in your company) desire but understand the why. This places the finance department in the driver’s seat to fully understand the interworking of the business. If you are the only CPA, then you should absolutely understand the business from top to bottom. If you have multiple CPAs or a diverse accounting or finance department, then have meetings to educate one another. Time is precious, but a routine half hour meeting to discuss the latest corporate happenings will keep everyone in tune with the vision and on track to becoming a better business partner. Also remember that what the finance department thinks is good for the business might not actually be in the business’s or shareholders’ best interest.

That goes both ways, I suppose.

Why do CPA’s need soft skills? According to Wikipedia, soft skills is a term often associated with a person’s “EQ” (Emotional Intelligence Quotient), the cluster of personality traits, social graces, communication, language, personal habits, interpersonal skills, leadership, etc. that informs our relationships with other people. Soft skills contrast to hard skills, which are generally easily quantifiable and measurable (e.g. software knowledge, basic plumbing skills).

A person’s soft skill EQ is an important part of their individual contribution to the success of an organization.

Particularly those organizations dealing with customers face-to-face are generally more successful if they train their staff to use these skills. Screening or training for personal habits or traits such as dependability and conscientiousness can yield significant return on investment for an organization. For this reason, soft skills are increasingly sought out by employers in addition to standard qualifications.

Clearly if CPAs are meeting with the CEO, executives, or managers, it makes it much easier if the CPA has a higher EQ. These are not your stereotypical CPA’s natural traits; however, you must pay attention to these as the back office evolves.

Where are my resources? You may have learned in business school that managers have 4 resources – human,fFinancial, physical (PP&E) and informational. The efficient and effective use of these 4 resources helps companies become and remain competitive. The same holds true for CPAs in the corporate world. You have a department of employees (human), a budget (financial), computers, desk and work areas (physical), and more data than most in the company (informational). The art is balancing these in the most efficient way to reach the desired results.

Where does all my time go? With the evolving financial department and the extreme strain on time it may prove difficult to wade through it all. A great tool in dealing with prioritization is Pareto’s analysis, otherwise known as the 80 / 20 rule. Pareto’s analysis is a formal technique useful where many possible courses of action are competing for attention. In essence, the problemsolver estimates the benefit delivered by each action, then selects a number of the most effective actions that deliver a total benefit reasonably close to the maximal possible one. Simply put, for many events, roughly 80% of the effects come from 20% of the causes – 80% of sales come from 20% of clients and 80% of your daily interruptions come from 20% of the staff. This may not hold the answer, but it will help stimulate thinking and organize your thoughts in a way to hopefully get the most accomplished in the least amount of time.

Let’s circle back to the activities of a properly functioning finance department.

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The degree of emphasis on different activities varies by organization — and depends on factors such as the organization’s competitive position and the prevailing economic environment.

Research conducted by Ernst & Young, highlighted six principal activities that fairly represent the contribution of today’s top finance executives: 1. Ensuring business decisions are grounded in solid financial criteria 2. Providing insight and analysis to support the CEO and other senior managers 3. Leading key initiatives in finance that support overall strategic goals 4. Funding, enabling and executing the strategy set by the CEO 5. Developing and defining the overall strategy for your organization 6. Representing the organization’s progress on strategic goals to external stakeholders These activities collectively represent the broader mandate of executives in the finance role. While several of them can be managed discretely and represent different ongoing functions within finance, they are interdependent and mutually supportive.

The evolving role demands the ability to manage and mitigate risk, ensure reliability of the numbers, and help make intelligent choices with a voice at the executive table.

L. Brent McClure, CPA is a consultant, CFO, instructor, and self-described financial nerd. He is currently licensed in Alabama and Mississippi, holds a Chartered Global Management Accountant (CGMA) certificate and has an MBA from the Freeman School of Business at Tulane University.

While maintaining his own practice, he is also vice-president of finance for Chalkable, a company which provides education support for students and teachers.

meet David Where did you grow up? While I was born in Huntsville, Alabama, I grew up in a little town called Southside, just outside of Gadsden, and graduated from Southside High School.

There is no way that I can thank Mr. Ingram enough for his wisdom and guidance for that experience. The more assignments he gave me, the harder I wanted to work and the better I wanted to do. I believe all accounting students would benefit from having a hands-on accounting internship while in college.

When did you decide on accounting as a career? Although I never had dreams as a kid of becoming an accountant, I did have aspirations of owning my own business one day. I had been told that a background in accounting would give me the best foundation to accomplish anything that I wanted to do in business. But it was really in college that I settled on an accounting career.

Tell us about your undergraduate experience. Where did you attend college?

I received a scholarship to attend Gadsden State Community College. I worked the third shift stocking shelves at Food World during the year that I attended community college. I then transferred to the University of Alabama where I earned my Bachelor of Science in Commerce and Business Administration.

Did you have a mentor in high school or college? The accounting course work at the University of Alabama proved difficult for me. As a result, I became very discouraged.

I signed up for a spring internship with John Ingram at Ingram’s Accounting and Financial Management, Inc. in Tuscaloosa and a few very important things happened as a result. First, I was able to put the concepts from school together with actual, real-life accounting work experience – a light bulb came on for me! Second, Mr. Ingram gave me, and all of his interns, significant clientrelated duties and responsibilities. One of the bigger tasks that I had was to produce a weekly payroll, with hundreds of employees, in time to have it shipped FedEx to the state of Indiana. If I did not complete the payroll on time, then the client would not get the paychecks and employees would not get paid. Quite a lot of stress for a college kid! But it taught me how to always meet deadlines and to be resourceful and resilient. I never missed a payroll deadline. Although there were a couple of occasions where I had to drive to the Birmingham airport to the FedEx office because it was too late to drop off in a pick-up box in Tuscaloosa. Third, I learned how to work with co-workers and clients. Customer service was of paramount importance and hard work was non-negotiable. Mr. Ingram allowed me to turn that internship into a part-time job that carried me the rest of the way through both my undergraduate degree and graduate school.

What did you do following graduation?

Because the 150 hour rule had just been passed, I decided to attend the University of Alabama at Birmingham where I earned my master of accounting with an emphasis in taxation. After earning my master’s degree, I realized that beginning my career in public accounting would be extremely beneficial.

In addition, becoming a CPA would be my next step. This was an intimidating hurdle.

David Grizzard I made the trip to Montgomery multiple times and, finally, passed the exam. While some take great pride in passing the exam on the first attempt, I felt great pride in accomplishing a major goal in our profession.

How has your career path developed? After a number of years in public accounting, I took a position in industry as an assistant controller at Riverview Regional Medical Center in Gadsden. Mark North, the CFO at the time, took a chance on someone with no healthcare experience and for that I will always be grateful. My career developed as I became an assistant CFO and then CFO at hospitals in both Mississippi and Alabama.

Currently, I am the CFO at Baptist Medical Center East in Montgomery.

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MEMBER PROFILE

What have been the biggest changes in the profession during your career?

The biggest change has been the need for accountants to have “soft skills”.

Employers no longer desire just to have an accountant that can sit in the back office with dark rimmed glasses and a ten-key and crank out audits and tax returns all day. Businesses want CPAs that have the potential to develop into future leaders. Communication skills, a spirit of teamwork and collaboration, critical thinking skills, problem solving, flexibility, continued learning and growth, conflict resolution and leadership are just a few of the talents that are necessary to secure a position and then progress as an influential leader in an organization.

What are the biggest challenges facing the profession right now from your perspective in healthcare? The biggest challenge is finding a way to control rising healthcare costs. For all CPAs working in public accounting, industry, or anywhere in between, we all realize that providing healthcare coverage to employees continues to be a rising expense of doing business. How do we control that cost? How can we help our employees be healthier? How do we keep them out of hospitals where inpatient stays can sometimes be costly? Do we institute wellness programs? Do we encourage gym memberships and other healthy lifestyle choices by offering financial incentives to employees? How do we work with the health insurance companies to help reduce the consistent rise in premiums year over year?

What has surprised you the most as your career has evolved? I have been amazed by the consistently high quality people that I have had the pleasure to work with over the years. The hospitals and firms where I have worked have each had people of exceptional talent, excellence, compassion and caring.

In addition, another big challenge facing the profession is the cost associated with the Affordable Care Act (ACA). Much has been written and said about the ACA, but the legislation certainly does not seem to be affordable. It is not affordable to those who have signed up for the insurance, nor is it cost effective to those companies and CPA firms who are now in the midst of complying with all of the various aspects of the law.

What prompted you to become a member of the ASCPA? Joining the ASCPA seemed to be the next logical step after passing the CPA exam.

Most of my peers in the profession were members, so I wanted to be a member, too.

What keeps you up at night? Healthcare is an ever changing world – physicians, staffing, technology, regulations, safety challenges, quality concerns, and reimbursement from payers such as Medicare, Medicaid and Blue Cross. Trying to stay ahead of the curve and anticipate these changes and how they will affect our hospital’s future viability is a constant source of concern and requires much time and attention.

How does membership benefit you as a corporate CPA? My ASCPA membership helps me stay up-to-date on events and happenings around the state as well as providing an exhaustive list of continuing education opportunities. I was able to attend the summer CPE conference in Sandestin last July and had the opportunity to see old friends as well as make new ones.

Tell us about your family. I am married to Nita Grizzard. Nita currently serves as a volunteer at the Montgomery Cancer Center in Montgomery.

We have two daughters, Katie (23) and Abbie (19). Katie was recently married to Chris Blight in June of 2015. They are expecting their first child, Henry Owen, in March. Katie is an English teacher at Prattville Junior High and Chris coaches the girl’s varsity soccer team at Auburn High School.

Abbie just began her second semester of college at Auburn University at Montgomery. She is studying to become a nurse.

What keeps you inspired and motivated each day? Our mission statement here at Baptist Health simply states, “As a witness to the love of God through Jesus Christ, Baptist Health exists as a voluntary, not-forprofit organization to promote and improve the physical, emotional and spiritual well-being of the people and communities it serves through the delivery of quality healthcare services provided within a framework of fiscal responsibility.” What an awesome opportunity to serve the patients, hospital staff, and physicians of this community each and every day. I often kid with my family that I “save lives” every day. While that may seem absurd to hear from someone with an accounting background, we all have a role to play here at Baptist Medical Center East. Providing excellent patient care is a sacred work that our caregivers accomplish through servant leadership. It is an honor and privilege to help our team members get the resources they need to do the work that God has called them to do.

Is there anything else you’d like to share? I discovered early in my career that while CPAs must be technically competent in their field of expertise, they must also be experts in how they interact fairly and kindly with others, whether they are patients, physicians, clients, co-workers, bosses or subordinates.

“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

– Maya Angelou

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The Beach Club 925 Beach Club Trail Gulf Shores, AL 36542

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Financial Forecasting: Planning for Success Thursday, June 23, 2016 1:00 PM | CPE: 4 Other Instructor: Brent McClure

Health Care Reform Act: Critical Tax and Insurance Ramifications Friday, June 24, 2016 8:30 AM | CPE: 4 Tax Instructor: Michael Frost

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Advanced Concepts in SSARS 21 and Nonattest Services Thursday, June 23, 2016 8:30 AM | CPE: 4 A&A Instructor: Greg Clark

Fraud Basics: Protecting the Company Till Friday, June 24, 2016 8:30 AM | CPE: 4 A&A Instructor: Greg Clark

Risk, Cost, and Cash Management for Controllers and Financial Managers Friday, June 24, 2016 8:30 AM | CPE: 4 Other Instructor: Brent McClure

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IRS Disputes: Identifying Options for Your Client Thursday, June 23, 2016 8:30 AM | CPE: 4 Tax Instructor: Michael Frost

Hot Tax Planning Developments Under the Current Tax Law Thursday, June 23, 2016 1:00 PM | CPE: 4 Tax Instructor: Michael Frost

Analyzing Costs, Productivity, and Efficiency: Three Ways to Boost Your Bottom Line Friday, June 24, 2016 1:00 PM | CPE: 4 Other Instructor: Brent McClure

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Critical Skills for Budgeting Success Thursday, June 23, 2016 8:30 AM | CPE: 4 Other Instructor: Brent McClure

Financial Statement Disclosures: A Guide for Small and Medium-Sized Businesses Thursday, June 23, 2016 1:00 PM | CPE: 4 A&A Instructor: Greg Clark

Proven Controls to Steer You Clear of Fraud Friday, June 24, 2016 1:00 PM | CPE: 4 A&A Instructor: Greg Clark

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Preparing Special Purpose Framework Financial Statements: Cash, Modified Cash and Tax Basis Wednesday, June 22, 2016 8:30 AM | CPE: 4 A&A Instructor: Greg Clark

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Tax Consequences and Reporting Issues of LLCs, LLPs, LPs, and Other Partnerships Wednesday, June 22, 2016 8:30 AM | CPE: 4 Tax Instructor: Michael Frost

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Smart Tax Planning Strategies for Individuals Tuesday, June 21, 2016 1:00 PM | CPE: 4 Tax Instructor: Michael Frost

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K2’s Advanced QuickBooks Tips and Techniques Tuesday, June 21, 2016 1:00 PM CPE: 4 Other Instructor: TBA

Analyzing a Company’s Financial Statement Wednesday, June 22, 2016 1:00 PM | CPE: 4 Other Instructor: Brent McClure

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Guide and Update to Compilations, Reviews, and New Preparations Tuesday, June 21, 2016 1:00 PM | CPE: 4 A&A Instructor: Greg Clark

Capitalized Costs and Depreciation: Key Issues and Answers Wednesday, June 22, 2016 1:00 PM | CPE: 4 Tax Instructor: Michael Frost

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K2’s Microsoft Office 2016 - Improving Productivity with New Features Tuesday, June 21, 2016 8:30 AM CPE: 4 Other Instructor: TBA

The Statement of Cash Flows: Preparation Guidance & Presentation Illustrations Wednesday, June 22, 2016 1:00 PM | CPE: 4 A&A Instructor: Greg Clark

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Practical Tax Tips and Techniques for Closely- Held Businesses Tuesday, June 21, 2016 8:30 AM | CPE: 4 Tax Instructor: Michael Frost

Controller’s Update: Today’s Latest Trends Wednesday, June 22, 2016 8:30 AM | CPE: 4 Other Instructor: Brent McClure

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Current Issues in Accounting and Attestation: An Annual Update Tuesday, June 21, 2016 8:30 AM | CPE: 4 A&A Instructor: Greg Clark

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GULF SHORES CPE SESSIONS

Social Security and Medicare: Maximizing Retirement Benefits Friday, June 24, 2016 1:00 PM | CPE: 4 Tax Instructor: Michael Frost

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spent twenty-eight years of my career working in corporate tax departments, most of that time as the department head. As I began my career in taxation, the C Corporation was the only vehicle available for the business owner to protect his personal assets from the creditors of the business or worse, litigation that could wipe out a lifetime of savings (sole proprietorships and general partnerships offered no protection). This safety net came at the price of paying tax at the corporate level and once again on distributions to the owners.

Unlike today, the dividend was taxed as ordinary income at the shareholder’s top tax bracket in the tax year the dividend was paid (up to 70%).

ZOEBELEIN ON TAX

by Tom Zoebelein, CPA Director of Tax Research, Pearce Bevill Leesburg Moore

The tax on dividend distributions was never the tax department’s concern when I worked in publicly traded corporations, but the opposite was the case for my closely held corporate employers.

The closely held corporations (mostly family owned) were concerned with building equity

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and thus controlling the timing and amount of dividend declarations in their planning. The tax department had to walk a tightrope because a slip often meant additional tax on the owners. The IRS would look for ways to treat an item as a dividend distribution, meaning additional corporate tax and additional tax on the shareholder. The second IRS weapon was using the accumulated earnings tax to recover the second piece of the corporate earnings pie it felt it was denied when the corporation elected not to distribute all its earnings. Their thinking was that retaining a portion of corporate earnings to grow the business was a sin punishable by taxing the corporation (countering this presumption was the duty of the tax department). We’ll deal with the tools we used in another article.

The next progression in corporate taxation came with the addition of Subchapter S to the Internal Revenue Code. Thanks to the newly minted Subchapter S, qualifying corporations had but a single layer of tax. My 44 years in practice has

taught me that when the IRS giveth watch for what it taketh away. “Qualifying small businesses, if you elect I will allow just one layer of tax and it will be on 100% of corporate taxable income, and those items of income whose tax impact is determined at the shareholder level will be allocated separately.”

Now any audit change was felt by all the S shareholders. There was no pressure on the tax department. Good deal for small businesses, so good in fact that the IRS felt cheated out of their last C corporate dividend and shareholders were deferring income from the S by use of a fiscal year. The IRS’s cure for the revenue loss was the addition of the built in gains tax for corporations converting to S and the ban on deferrals in excess of three months. The IRS felt the fiscal year S corporations were using its tax money during the deferral period and so the Fiscal S now must pay the tax deferred in advance as a toll charge.

The S corporation was a good first step, but the restriction on the number of shareholders, at ten, coupled with some of the less favorable corporate attributes in the Sub S DNA passed down from its C corporate parents, has made the S corporation less than ideal for many small businesses. One C attribute left in the Sub S gene that has been problematic since I have been in public practice is the requirement that shareholder distributions be made proportional to the percentage interest in the S. You know the familiar “why does he have to get the same as me when I have been carrying him for years?”

Short lived but very creative, the master limited partnership, MLP, was next on the scene. The MLP interest holder received limited partnership treatment and that interest was publically traded like corporate stock. The MLP could bring in tons of cash by actually selling MLP interest on the stock market.

The tax department, where I was working, was tasked with evaluating a conversion of our closely held corporation into a master limited partnership when the bottom dropped. The IRS sliced and diced MLP, eliminating its use to all but the extractive industries. MLPs flash of brilliance was short lived and good for those grandfathered in, but as a tax strategy, sits gathering dust.

CABIN FEvER

Inspires the Writing of the First LLC Statute Circa 1977 During the winter of 1977 some brilliant tax geeks in Wyoming gathered around the cabin fireplace to play their favorite game of Name That Code Section.

One guy jumped up and said, “I’m tired of this game. We need to think up another.”

After much trial and error, they created that now popular board game Tax Pictionary. During the first round, Melvin drew something on the board and all the others were stumped.

“I can’t figure out what this [business entity] is that you just drew. It looks like a hybrid of a corporation and a partnership. What do you call that thing?”

“It is a limited liability company,” Melvin said with a beaming smile.

“Holy cow this is the puzzle piece I have been working on for almost ten years. It’s beautiful. It acts like a partnership but with only one level of tax.”

That’s how the limited liability company was born (At least that’s how I see it, and it’s my story).

Court-tested, Melvin’s one tax wonder, the “LLC,” spread like wildfire as each state raced to enact their version or face companies leaving their state.

Alabama, not to be left out, put their LLC statute in the middle of the general partnership code section, but that is a whole different story.

Melvin’s LLC today is the Swiss Army Pocket Knife of the Internal Revenue Code and a dream come true for small businesses. Open one blade of the LLC: it is a partnership. Open other blade: it is an association taxed as a corporation. Open the last blade: it is a disregarded entity. Melvin’s three bladed LLC gave small businesses the protection under state law of a corporation, but with all the benefits of partnerships.

It’s the hybrid of all hybrids, a virtual tax Nirvana.

In the trash can went the rules for partnership agreements to defend partnership treatment. Sadly, the Wyoming geeks lost their shirts on their new game of Tax Pictionary. It only sold one copy. Hey! Anyone up for a game?

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not only was the team known for being sharp and hard-working, but we were fun, making it a coveted engagement team.

The other day, I read this article about CFO turnover at big companies. The long-short of it being that fresh blood does most companies a lot of good. It makes sense; different experiences make for a more diverse team that will avoid falling into the same old routine.

This happened again with the Big 4 firm when I transferred to a new office. Here I was on an even larger team and was a total outsider. Initially this was an advantage because I had to prove myself, having no prior working history with anyone else on the team. I managed to build relationships and develop respect among staff and managers. After a time, I was able to make suggestions where I saw some opportunities for improvement.

On large teams, old habits die hard so it can take time to make a lasting impression.

It got me thinking about my own career, mostly spent working in smaller companies, and how new blood — sometimes mine, sometimes someone else’s — can positively impact a company or team, mostly because they were strange. Not in a bad way mind you, because it was much different than the status quo.

DON’T WASTE THE OPPORTUNITY TO BE FRESH BLOOD

The first time I experienced this was at my first job, a boutique CPA firm, when a new senior associate came on from PwC. Our firm was scrappy but disorganized and sloppy. The new senior seemed like just the type of person to bring some sanity and order to a firm that badly needed it. I knew immediately that I wanted to work with him as much as I could because I felt like he would teach me new things and could relate to me better than the partners, who were accessible but always took their knowledge for granted. We developed a good relationship quickly and I became comfortable confiding in him. Other young staff on the team felt that way too, more so than any of the other seniors and even managers, earning him lots of recognition from the partners.

I guess what I’m getting at is this — any time you’re about to join a new employer or team, you have a chance to change the dynamic and culture for the better, sometimes in big ways. Most people probably don’t think their presence makes any difference, but it should always make a difference. It can take time, but your unique experience and perspective can cause people to think in a whole new way, give life to a team that’s trudging along or be the catalyst that takes them to a higher level of performance. In other words, don’t waste your opportunity in a new job by staying in the background. Being the new guy helps the old team. Don’t waste that.

Interviewers often want to know what a particular candidate brings to a table. Rather than give a cliched answer about “energy” or “hard work” think about how you’ve managed to change the culture of your past employers and teams and cite those specific examples. In some cases, you might not be a good fit, but that’s okay. Your distinct flavor will be the perfect addition to the right team and they won’t waste time in adding you to the mix.

Posted by Caleb Newquist, Going Concern, Accountingfly, January 12, 2016

At my second job, a Big 4 firm, I joined a large, exclusive team that had some perennial members. They were the go-to people for knowledge and key holders for access to managers and partners. I joined the team at the same time as a couple other new people and we bonded quickly because the perennial members looked at us like outsiders. We all worked hard (too hard, of course) but the new team members enjoyed it because of the new friendships and we gave the team some levity. Our managers and partner noticed the results and soon we became integral parts of the team, taking ownership in various areas. So

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CORPORATE vS. PUBLIC ACCOUNTING

What are the advantages of each as a career?

Whether you’re just starting out in your accounting career or you’re interested in making a career transition, one decision you’ll need to make is whether to pursue a career in corporate or public accounting. While there’s no one-size-fits all career path in accounting for CPAs, following is a guide to the benefits of choosing a public or corporate accounting career.

Benefits of a career in public accounting

Public accounting experience provides a great foundation for an accounting career. Exciting aspects of public accounting include working with a variety of clients and the chance to become a partner or principal. Other noteworthy advantages include: High demand that’s growing. Growth and job availability are looking better than ever for people entering the field of public accounting.

According to the AICPA’s 2013 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits, hiring by public accounting firms is “at an all-time high, especially at the Master’s degree level.” Further, the report reveals that 89% of public accounting firms also forecast that they will hire the same or more graduates year after next—a positive trend into the future. Demand is especially high in audit and tax, according to Robert Half’s 2013 Salary Guide.

Potential for travel. Large public accounting firms offer the chance to work with major, multinational clients and the possibility of extended or frequent travel, both domestically and abroad. However, CPAs who like to travel, but less regularly, may opt to join a small or midsize public accounting firm to work with local or regional clients.

Diverse exposure. Accountants at public accounting firms have the opportunity to work with multiple clients, gaining increased exposure to various types of business operations as well as senior executives. For example, as an auditor, one is usually exposed to manufacturing, service, retail, government, and other industries.

This can provide more opportunity down the road if one decides to go the corporate route.

Going corporate from the beginning would most likely limit exposure to those various business segments and could get one pigeonholed.

If you’re a CPA with Big Four experience, you’ll almost always be in demand among both public accounting firms and corporate accounting

departments, according to Robert Half’s Salary Guide. However, CPA candidates who don’t have experience in a particular segment (corporate or public) can also gain it through an interim or project job placement.

Competitive salary. In many cases, public accounting salaries are higher than those in private accounting, and often come with hefty sign-on bonuses. For instance, an audit manager in public accounting can earn upward of $126,500, compared with $111,000 for an internal audit manager in a midsize corporate firm, according to Robert Half’s Salary Guide.

Further, a big part of the allure of public accounting is the chance to become a partner.

Opportunities for advancement. With hard work and talent, progression through the ranks of a public accounting firm can be swift over the first few years. According to the New York State Society of CPAs’ The CPA Journal, it takes just about 13 years on average to make partner.

For experienced and accomplished CPAs, there are also consulting opportunities. That said, mergers, number and age of current partners, and age of partner candidates are all factors that can increase or decrease this 13-year average path to partnership.

Benefits of a corporate accounting career

Private accounting enables professionals to hone their craft in an area of business they enjoy. They also may enjoy a greater work/life balance than their counterparts in public accounting, although public accounting firms are taking steps to address this issue as they compete with the private sector for top talent.

Specialization opportunities. Manufacturers, major retailers, biotechnology companies, technology firms, governmental agencies, and environmental organizations are often looking for new accountant specialists for their teams.

Specialty areas of IT, business valuation, and forensic accounting are also in strong demand, according to Robert Half’s 2013 Salary Guide.

Opportunities to contribute to the bottom line.

Accounting roles that support business growth in corporations—such as financial analysts and business system analysts—provide accountants with a unique opportunity to directly contribute to the company’s bottom line. Because corporate accountants report on the results of the business for which they are employed, job satisfaction can be higher than in public accounting, where the work is performed for clients. If you determine you want to be a high-ranking executive within a particular firm or in a specific industry, you may be better off gaining that specialized experience as quickly as possible in a corporation.

Personal flexibility. On the work/life balance scale, private accounting has the edge. In public accounting, the focus is on billable hours. In private accounting, there is no need to track time and relate it to money made for the company every second of the day. Generally 15

speaking, there are also fewer overtime hours in the corporate accounting world. On the other hand, it’s not unusual for CPAs to work six days a week during tax season.

Consistency. Knowing that you have a specific job to do (and place to do it) day after day, for many people, is comforting. Consistency and routine are important stress reducers for some professionals, which makes corporate accounting an attractive choice. Security and routines are also important as well when you’re making decisions about marriage and children.

Beyond salary incentives. In order to attract top performers, companies in the private sector are taking steps to enhance their overall compensation packages to rival those at public accounting firms. When benefits over and above salary and sign-on bonuses are considered, additional corporate compensation offerings often include stock options, annual and discretionary bonuses, and a pension.

There is more than one way to make the journey through your accounting career. If you look at CFO, controller, director of finance, and treasurer résumés, you’ll see that there’s no consistent road map. There is often a mix of public accounting and private industry experience, as many choose to work in both environments at some point in their careers. In addition, it’s not uncommon for people to begin their careers in public accounting to build a foundation, then move to corporate accounting.

For some, though, the hours and stress that can be experienced in public accounting lead to a desire to switch to corporate accounting.

If, as a CPA or CPA candidate, you are having trouble deciding on public vs. private, some experienced accountants feel choosing the public route could be the best bet. While it’s relatively easy to move from public accounting to corporate/private accounting after a few years, they argue, it’s not so easy to work in private and then go back and compete with all the college grads for entry into a public career. And moving laterally from private to public can become more difficult the longer you stay in the private sector.

All-in-all, identifying your long-term personal and professional goals, along with your work environment likes and dislikes, is an ideal way to help you decide which accounting career path is right for you.

This article is provided courtesy of Robert Half, parent company of Accountemps, Robert Half Finance & Accounting and Robert Half Management Resources. Robert Half is the world’s first and largest specialized staffing firm placing accounting and finance professionals on a temporary, full-time and project basis.

Follow Robert Half on Twitter at twitter.com/roberthalf.

AUDITOR

SHOULD YOUR PREPARE YOUR TAX RETURN? DAVID MCCANN CFO.com

WHAT TO ExPECT IN THE NEW YEAR

While regulators frown on a company’s auditor handling its taxes, new research suggests that such concern is unwarranted.

financial reporting restatement due to an audit failure; and (2) reputation risk, in that an auditor’s work is more visible and sensitive to the firm’s leadership.

With corporate tax avoidance a hot issue in the United States and Europe these days, it’s no surprise that a recent $185 million settlement for taxes going back to 2005 between the British government and Google has proved highly contentious. Members of the political opposition have denounced it as “derisory” and a “sweetheart deal.”

In short, having more to lose than other preparers, auditors tend to be less aggressive in advancing tax-benefit claims.

“Ever since the turn-of-the-century accounting scandals involving Enron, WorldCom, and others, regulators have consistently expressed concern over companies’ purchasing both audit and Yet European regulators are set to ban tax services from the same accounting an accounting arrangement that, new firm,” says Petro Lisowsky, a University of research suggests, actually inhibits Illinois at Urbana-Champaign professor corporate tax aggressiveness of the and a co-author of the study along kind brought to light in the Google case. with Kenneth Klassen of the University of Waterloo and Devan Mescall of the Under new European Union rules University of Saskatchewan. slated to take effect later this year, and likely to be monitored closely by Lisowsky notes that the vast majority regulators across the Atlantic, auditors of research on this issue has focused of corporate financial statements will on whether this arrangement reduces be prohibited from providing a variety audit independence and thereby of tax-related services to their clients, compromises corporate financial including preparation of company tax reporting. But relatively little attention returns. has been paid to the question of how this arrangement affects tax reporting.

But, according to research published in the current issue of the American “Given regulators’ perennial distrust of Accounting Association journal The auditors providing tax services to their Accounting Review, tax returns prepared clients, our study will probably come as by companies’ external auditors claim a surprise,” Lisowsky says. “It finds that roughly 30% less in questionable tax company taxes prepared by the external benefits than do those prepared by auditor tend to shun questionable tax other outside accountants or by the breaks — so-called unrecognized tax firms’ own tax officers. benefits — considerably more than those prepared by another accountant Why is this the case? The study, based or by a firm’s tax department.” on data from S&P 1,500 companies, offers a rationale: “With the joint The research takes advantage of unique provision of audit and tax services, access to confidential Internal Revenue auditor preparers bear greater costs, Service data on who signed corporate relative to other preparer parties, if a tax returns, information made available position is overturned due to a tax audit to Lisowsky on the condition that and court action.” corporate anonymity be preserved.

The study notes that auditors bear at least two types of risk that do not apply to other preparer types: (1) the risk of a

The authors analyzed the relationship of tax-preparer identity to three variables: (1) the amount of reserve companies

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set aside each year (as footnoted in their financial statements) for unrecognized tax benefits — that is, claims that are uncertain but are deemed more likely than not to pass muster with the IRS or in court; (2) data from annual financial statements; and (3) auditor identity and fees, including tax fees.

About 55% of the companies in the sample (which consisted of more than 700 firms followed for two years, for a total of 1,533 firm-years) submitted tax forms signed by a company officer, while about 20% were signed by the firm’s external auditor and the remaining 25% by another accountant.

After controlling for size, profitability, and other factors, the authors estimate that companies whose taxes were prepared by their auditors claimed about 34% less in aggressive tax benefits than those that relied on another accountant, and about 28% less than those who prepared them internally.

While the study’s main thrust was to explore tax aggressiveness, the professors see their findings as relevant to overall corporate financial integrity, which regulators tend to see as compromised when auditors provide tax services.

As Lisowsky puts it, “Given the importance of taxes in company finance, [this study] should enhance the reliability of companies’ financial reporting. In this sense, the study should be of value to investors as well as to corporate managers, directors, and tax and finance regulators.”

The new study, entitled “The Role of Auditors, Non-Auditors, and Internal Tax Departments in Corporate Tax Aggressiveness,” is in the January/ February issue of The Accounting Review, published every two months by the American Accounting Association.

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2016

ascpa accounting connections

June 8 – 10, 2016 • Sheraton Hotel • Birmingham, AL

Wednesday June 8 Annual Young CPA Golf Tournament

10:30am – 5:30pm

at the Robert Trent Jones Oxmoor Valley Course

Registration & Lunch

10:30am

Shotgun Start

12:30pm

Awards 19th Hole

5:30pm 5:30pm – 7:30pm

Robert Trent Jones Oxmoor Valley Clubhouse

7:00am - 9:00am

with Breakfast Stations throughout featuring Alabama favorites.

Morning Sessions Morning Break from 9:40am – 10:00am

Exhibit Hall Opens

7:00am - 9:00am

with Breakfast Stations throughout featuring Alabama favorites.

SESSION B ASB Matters & ARCS Matters

ConCurrent SeSSionS

with Ahava Goldman, CPA & Michael Brand, CPA

SESSION E Federal Tax Update 8:00am – 10:00am

Networking Luncheon 12:00pm-1:00pm Afternoon Sessions

1:00pm – 5:00pm

SESSION C 2016 A&A Update

with Lisa McKinney, CPA

Sales And Use Tax 10:20am – 12:00pm for Alabama with Blake Madison

SESSION F Young CPA Session

with Jim Martin, CPA

SESSION D The Top THREE 2016 Hot Tax Topics Celebration of Success: Awards Reception

6:30pm – 8:00 p.m

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8:00am – 12:00pm

with Scott Bradbary, CPA and Representative Cam Ward

with the Sirote Tax Panel

8:00am – 12:00pm

Friday June 10

with Barry Melancon, President & CE of the AICPA, Dr. Kevan Deravi, & Melanie Lauridsen, CPA.

Afternoon Break from 2:40pm – 2:50pm

Thursday June 9 Exhibit Hall opens

SESSION A Professional Issues Update, Economic Update, and Cyber Security

SESSION G Facing the Future (student/educator session)

8:00am – 12:00pm

with Jeff Phillips, President of AccountingFly

Critical Skills for Budgeting Success Thursday, June 23, 2016 8:30 AM-12:00 PM CPE: 4 Other Gulf Shores Instructor: Brent McClure Financial Forecasting: Planning for Success Thursday, June 23, 2016 1:00 PM-4:30 PM CPE: 4 Other Gulf Shores Instructor: Brent McClure

K2’s Budgeting and Forecasting Tools and Techniques Tuesday, July 26, 2016 8:30 AM-4:15 PM CPE: 8 Other Birmingham Instructor: TBA

039 047 052 053

022 025 027

K2’s Excel Tables and Data Models - Efficiently Managing, Analyzing & Reporting Your Data Monday, July 25, 2016 8:30 AM-4:15 PM CPE: 8 Other Birmingham Instructor: TBA

Advanced Business Law for CPAs Monday, August 15, 2016 8:30 AM-4:15 PM CPE: 8 Other Huntsville Instructor: Robert Walter

Taking the Self Taught Excel User to the Next Level Wednesday, July 27, 2016 8:30 AM-4:15 PM CPE: 8 Other Montgomery Instructor: Karl Egnatoff

054

Analyzing a Company’s Financial Statement Wednesday, June 22, 2016 1:00 PM-4:30 PM CPE: 4 Other Gulf Shores Instructor: Brent McClure

Analyzing Costs, Productivity, and Efficiency: Three Ways to Boost Your Bottom Line Friday, June 24, 2016 1:00 PM-4:30 PM CPE: 4 Other Gulf Shores Instructor: Brent McClure

Working With, Storing, and Securing Digital Information Thursday, July 28, 2016 8:30 AM-4:15 PM CPE: 8 Other Montgomery Instructor: Karl Egnatoff

029

013 016 019

Controller’s Update: Today’s Latest Trends Wednesday, June 22, 2016 8:30 AM-12:00 PM CPE: 4 Other Gulf Shores Instructor: Brent McClure

Risk, Cost, and Cash Management for Controllers and Financial Managers Friday, June 24, 2016 8:30 AM-12:00 PM CPE: 4 Other Gulf Shores Instructor: Brent McClure

034

004

K2’s Advanced QuickBooks Tips and Techniques Tuesday, June 21, 2016 1:00 PM-4:30 PMCPE: 4 Other Gulf Shores Instructor: TBA

010

K2’s Microsoft Office 2016 - Improving Productivity with New Features Tuesday, June 21, 16 8:30 AM-12:00 PM CPE: 4 Other Gulf Shores Instructor: TBA

007

BUSINESS & INDUSTRY CPE SESSIONS

Employment Law Update: Key Risks and Recent Trends Tuesday, August 16, 2016 8:30 AM-4:15 PM CPE: 8 Other Birmingham Instructor: Robert Walter 4 Most Overlooked Business Risks: Preparing for the Future Tuesday, August 16, 2016 8:30 AM-4:15 PM CPE: 8 Other Montgomery Instructor: William O’Brien Analytics and Big Data for Accountants Wednesday, August 17, 2016 8:30 AM-4:15 PM CPE: 8 Other Birmingham Instructor: Robert Walter

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120 125

Blue Oceans and Clean Paper - Using the ACA and Wellness as a Catalyst to Move Organizations Wednesday, September 14, 2016 8:30 AM-12:00 PM CPE: 4 Other Birmingham Instructor: Karl Ahlrichs

126

101 108

Beyond CPA “Best Practices” - Taking Next Steps in the Future of the Client/ Customer Service Tuesday, September 13, 2016 8:30 AM-4:15 PM CPE: 8 Other Birmingham Instructor: Karl Ahlrichs

Lean Accounting: Apply Lean Thinking to Financial Management Thursday, September 15, 2016 8:30 AM-12:00 PM CPE: 4 Other Montgomery Instructor: Don Minges How Good Companies Become Great: Secrets to Success Thursday, September 15, 2016 1:00 PM-4:30 PM CPE: 4 Other Montgomery Instructor: Don Minges

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K2’s Advanced Excel Monday, August 29, 2016 8:30 AM-4:15 PM CPE: 8 Other Mobile Instructor: TBA

K2’s Excel Financial Reporting and Analysis Wednesday, August 31, 2016 8:30 AM-4:15 PM CPE: 8 Other Montgomery Instructor: TBA

Applying “Lean” Thinking to Making Employees Your Competitive Advantage Wednesday, September 14, 2016 1:00 PM-4:30 PM CPE: 4 Other Birmingham Instructor: Karl Ahlrichs

Executive Education’s Annual CFO Spotlight: 4 Select Issues Friday, September 16, 2016 8:30 AM-4:15 PM CPE: 8 Other Montgomery Instructor: Don Minges

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The New Controllership: Keys to Boosting Management Skills Friday, August 26, 2016 1:00 PM-4:30 PM CPE: 4 Other Birmingham Instructor: Brent McClure

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The New Controllership: Keys to Boosting Financial Performance Friday, August 26, 2016 8:30 AM-12:00 PM CPE: 4 Other Birmingham Instructor: Brent McClure

K2’s Technology Update Tuesday, August 30, 2016 1:00 PM-4:30 PM CPE: 4 Other Montgomery Instructor: TBA

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Excel PivotTables – Powerful and Not Hard to Use…Really!

Wednesday, August 24, 2016 8:30 AM-4:15 PM CPE: 8 Other Montgomery Instructor: Karl Egnatoff

K2’s Introduction to Excel Macros Tuesday, August 30, 2016 8:30 AM-12:00 PM CPE: 4 Other Montgomery Instructor: TBA

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The Eight Hour MBA Wednesday, August 24, 2016 8:30 AM-4:15 PM CPE: 8 Other Birmingham Instructor: Jennifer Elder

Introduction to Business valuation Tuesday, August 30, 2016 8:30 AM-4:15 PM CPE: 8 Other Birmingham Instructor: Kevin Andrews

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Conducting Business the Right Way – How to Add and Keep More Customers and Clients Tuesday, August 23, 2016 8:30 AM-4:15 PM CPE: 8 Other Mobile Instructor: Karl Egnatoff

Controller/CFO Update: Hot Topics Facing Today’s Financial Professional Wednesday, September 21, 2016 8:30 AM-12:00 PM CPE: 4 Other Mobile Instructor: Brent McClure

150

098

087

086

074

069

063

BUSINESS & INDUSTRY CPE SESSIONS (continued)

Gaining a Competitive Advantage: Critical Skills for CFOs and Controllers Wednesday, September 21, 2016 1:00 PM-4:30 PM CPE: 4 Other Mobile Instructor: Brent McClure

K2’s Tech Tools and Gadgets for a More Efficient You! Wednesday, September 28, 2016 1:00 PM-4:30 PM CPE: 4 Other Birmingham Instructor: TBA Position Your Organization for Success: Strategies for Today’s Competitive Environment Wednesday, September 28, 2016 1:00 PM-4:30 PM CPE: 4 Other Huntsville Instructor: Amanda Snead

166

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K2’s Technology for CPAs - Don’t Get Left Behind Tuesday, September 27, 2016 8:30 AM-4:15 PM CPE: 8 Other Huntsville Instructor: TBA

K2’s Top PDF Features You Should Know Wednesday, September 28, 2016 8:30 AM-12:00 PM CPE: 4 Other Birmingham Instructor: TBA

Analyzing Costs, Productivity, and Efficiency: Three Ways to Boost Your Bottom Line Thursday, September 29, 2016 1:00 PM-4:30 PM CPE: 4 Other Huntsville Instructor: Amanda Snead

183

K2’s Excel Best Practices Tuesday, September 27, 2016 8:30 AM-4:15 PM CPE: 8 Other Birmingham Instructor: TBA

168

K2’s Excel Tips, Tricks, and Techniques for Accountants Monday, September 26, 2016 8:30 AM-4:15 PM CPE: 8 Other Huntsville Instructor: TBA

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163

160

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BUSINESS & INDUSTRY CPE SESSIONS (continued)

Introduction to Excel PivotTables Friday, September 30, 2016 1:00 PM-4:30 PM CPE: 4 Other Birmingham Instructor: Marc Hamilton

Fastest smartest malpractice insurance. Period.

800.906.9654 GilsbarPRO.com

CFOs and CyberseCurity The roles of corporate treasurers, chief financial officers and money managers are hustling to keep up with changing times. That means CFOs have a lot more on their plate than they once did.

Risk mitigation is a significant source of this growing priority list. A recent survey of CFOs and corporate finance executives released by Grant Thornton said uncertainty of the U.S. economy is one of the largest worries among this group of professionals.

But the research also uncovered how these professionals are tasked with diversifying their responsibilities. Security, for instance, also topped the list, with about half of CFOs surveyed citing cyberthreats as a chief concern.

statement last month when the AICPA released its findings. “As the finance function continues to evolve to become more business-centric, it’s critical for finance executives, from the CFO down, to play a driving role in preparing for and addressing potential cyberrisks for the long-term growth of the company.”

RESPONDING TO A GROWING THREAT According to the AICPA, nearly one-third of respondents said their company was a victim of a cyberattack in the last two years — a 7 percent increase from 2014. More than one-fifth said these attacks are worse than what is portrayed in the media and news reports.

He added that this is a natural progression of the evolving role of the CFO. “CFOs are becoming more engaged and more involved in risk management within a business, and risk management is a process of understanding and applying organization-wide policies and procedures to manage financial risks,” Noah said. “But, more and more, CFOs are becoming involved in managing the nonfinancial risk.”

Those nonfinancial risks, as separate research has also found, include cyberthreats.

But Noah pointed out that financial managers aren’t going solo to combat this issue.

In an interview with PYMNTS, Noah said that corporations have been gradually placing more attention and resources in the area of cybersecurity over the last four or five years. But it was the infamous Target data breach that really got CFOs acting.

“Naturally, CFOs are the ones that the business turns to, because they have the disciplines, rigor and systems knowledge. And when you partner with IT, then you’re able to really let an organization become more secure from a cyber point of view,” he explained.

So, how is it that corporate treasurers are now finding themselves in a position to protect their corporations from cyberrisks?

As corporations impose stricter policies with their suppliers and obtain insurance, financial professionals are recognizing their position of strategy.

According to new research from the American Institute of Certified Public Accountants (AICPA), more than 95 percent of Chartered Global Management Accountants (CGMA) surveyed said their businesses are worried about database breaches, phishing scams and other types of security failures. Further, 72 percent stated that their corporations have turned to the finance function to help mitigate these risks.

While a CFO may be including cyberthreats under his or her growing list of priorities, partnering with chief information officers and IT functions is what makes a CFO effective against cybercrime, Noah added.

“Although it is a technical area and you need IT systems knowledge and IT expertise, what you need is a CFO or a finance team understanding the different implications of sets of data across the organization,” Noah explained. “You need an organizational view, rather than a functional view, of a piece of data as it moves around the organization, so finance is in a position where they can actually bring that view.”

It’s all about avoiding factors — like an economy in flux or cyberthieves — that expose a corporation to risk. Indeed, Grant Thornton found that up to 80 percent of CFOs describe themselves as “averse” to riskier growth strategies.

At first glance, it may seem that a CFO is an unlikely line of defense against something as technical as cybersecurity. But, says AICPA Vice President of CGMA External Relations Ash Noah, CFOs can actually be in a prime position to mitigate cyberrisk.

“The finance function has a unique view into the complexities of the business, as well as an in-depth understanding of the industry, markets and risk climate, yielding important insights for a company’s strategic direction,” Noah said in a

CFOs are becoming more engaged in risk management within a business.

From the Robert Half Finance & Accounting blog, January 4, 2016

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This collaborative approach to fighting cybercrime is essential to understanding not only how the CFO’s role within a company is changing but what exactly this function can provide in the process.

“We, as CFOs, don’t want to claim we’re the tech experts,” Noah said. “But what they’re bringing to the table is expertise in being able to manage the risk and identify it, look at a company’s process flows and systems flows, and put in a process which detects and evaluates risk then mitigates it.”

‘Risk detection, risk evaluation, risk mitigation is what finance brings to the table.’ Click To Tweet “This whole risk detection, risk evaluation, risk mitigation is what finance brings to the table,” he continued. “When you layer on top of that the technology expertise, that’s what makes the combination really powerful in defending against cybercrime.”

UPDATES

NOMINATIONS COMMITTEE REPORT

NOTICE OF ANNUAL BUSINESS MEETING

The ASCPA Nominations Committee met on Monday, January 19, 2016. Members of the committee include John Boles, David Brown, Brian Barksdale, Lowell Broom, Renee Hubbard and Don McCleod. The committee submits the following recommendations in accordance with Alabama Society of CPAs’ bylaws. Each nominee has agreed to serve, if elected.

Under the provisions of Article VI of the Alabama Society of CPAs’ bylaws, notice is hereby given of the annual business meeting. It will be held at the Accounting Connections Conference at the Sheraton Birmingham on June 9, 2016 at twelve o’clock.

OFFICERS:

Chair of the Board Chair-elect

Past Chair

ONE-YEAR TERM:

Keina Houser Dennis Sherrin Tim Smith

NOTICE TO MEMBERSHIP: PROPOSED BY-LAW AMENDMENT

TWO-YEAR TERM:

Lynne Bozeman Michael Brand Lisa McKinney Macaroy Underwood

The ASCPA Board of Directors met January 29, 2016 and unanimously voted to submit to membership a by-law amendment changing the definition of Associate Member. Essentially the amendment will mean that if you have an employee who is an accounting professional or who works closely with the accounting profession, para professionals, accounting staff, accounting faculty, office administrators or marketing staff as examples, especially those who attend continuing education courses, they will now be invited to join as associate members. These non-voting new members will be able to participate in all ASCPA

Jamey Carroll, Huntsville Marc Hamilton, Andalusia Lowell Broom, Birmingham Montgomery Fairhope Mobile Montgomery Athens Tuscaloosa Birmingham

THREE-YEAR TERM:

Brian Grainger Cherion Sibley Laine Spruiell

Birmingham Birmingham Albertville

AICPA Council Representatives, previously elected by the board of directors: John Shank (term October 2014 – October 2017) Birmingham Lamar Reeves (term October 2014 – October 2017) Mobile Respectfully Submitted, John Boles, CPA Chair, 2016 ASCPA Nominations Committee

activities and channels of communication.

BY-LAW AMENDMENT PROPOSED: 2.3 ASSOCIATE MEMBERS The Board of Directors, by whatever procedure it deems appropriate, may confer membership on persons who are actively pursuing sitting for the Uniform Certified Public Accountant exam or anyone affiliated with the accounting profession.

Associate members have no voting privileges; are not eligible to hold any office in the Society; and are not subject to Articles 2.7.3 and 2.8 of the By-Laws.

Matt Tucker, ASCPA Montgomery Chapter President, Rep. Martha Roby, Rep. Terri Sewell, Jeannine Birmingham.

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ASCPA 2016 Your board of directors has been very engaged and held their quarterly meeting with a full agenda on January 29.

Here are some of the issues where discussion has translated into action.

1. The board will present to membership a bylaw amendment to allow people affiliated with the profession to join the Alabama Society of CPAs. The amendment will be voted on at the ASCPA’s annual business meeting at the Accounting Connections Conference in June.

What will this look like? It basically means that if you have para-professionals or accounting staff working alongside you, especially those who attend continuing education courses, they will now be invited to join as associate members. Can you enroll office administrators or marketing staff who need access to ASCPA information on CPE, programs, volunteer opportunities? Absolutely.

The annual member fee for this category will be $100, plus a one-time $25 registration fee.

These non-voting new members will be able to participate in all ASCPA activities and channels of communication.

2. Renewal fees will see a modest increase of $10 per category across the board for 2016-17.

We continue to charge the lowest dues amount of any state society in the country. Annual dues notices will be sent April 20, 2016.

3. The board continues to monitor the changing landscape of peer review. I am currently serving on the national peer review committee to give the ASCPA maximum access to this ongoing discussion and to prepare Alabama CPAs for the changes ahead. If you wish to know more about the evolution of peer review and how it will affect your firm, please contact me. I am happy to share the exposure draft.

4. The role of chapters has been a hot topic in the last year and more. Chapter governance and structure will adapt in the next year to streamline operations. Our goal is to have chapters offer the very best of ASCPA services while maintaining their own flavor and opportunities to connect locally.

5. It’s busy season for practitioners and also for the Alabama Legislature. ASCPA has a Tax Return Due Date Conformity Bill that will correspond to the new federal. There are several other bills where we need amendments or no action. Please connect through our Key Person Program.

Legislators prefer to hear from their voters and we will need your voice this session.

The next board meeting will be in late April and we encourage you to jot down your thoughts and pass them along to members of the board of directors or to me.

Jeannine

Jeannine P. Birmingham, CPA, CAE, CGMA President and CEO

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MEMBER NEWS MOVING UP & MAKING CHANGES WARREN AvERETT announced that nine individuals have been promoted to members of the firm. HANNY AKL, CFE, CEPA is a member in the Birmingham office and leads the firm’s transaction advisory practice. He supports clients in all phases of their business and transaction life cycles and works with a wide variety of clients, including private equity, closely held and public companies as well as local governments.

JANGKEUN (PAUL) HAN serves as a Member in the Montgomery office, and leads the Firm’s National Service Leader of Korean Business.

He provides multidisciplinary services to Korean owned businesses including auditing, taxation and start-up consulting on tax and business incentive filings. TIA S. LEvANDA is a Member in the Firm’s Tax Division, and works out of the Montgomery office. Tia’s practice specializes in multi-state tax returns and tax research, and she provides tax planning for clients in the retail, real estate and manufacturing industries. She also serves on the Firm’s Committee for Tax Best Practices. YOGESH N. PATEL CFE is a Member in the Firm’s Audit Department, and works out of both the Birmingham and Atlanta offices. Yogesh serves a variety of clients by providing assurance services,

business advisory and forensic accounting.

Industries of expertise include healthcare, nonprofit, manufacturing and distribution, and professional service firms. JARED SHARP is a Member in the Huntsville office, Jared serves clients in technology, biotechnology, government contracting and manufacturing industries. He specializes in R&D tax credits, accounting for income taxes, FIN 48 and state and local tax issues.

Jared is also Huntsville’s Service Area Leader for their Tax Division.

ASHLEY JOHNSON, TABITHA LEE and DAN JOHNSON have all been promoted to manager at JamisonMoneyFarmer.

RACHEL AARON, ANDREA ARMSTRONG and BETSY JERNIGAN are now supervisor accountants.

ASHLEY JOHNSON is now a manager in JMF’s estate and gift tax department, with ten years’ tenure at the firm.

Johnson is a graduate of the University of Alabama with both undergraduate and master’s of tax degrees. TABITHA LEE is a QuickBooks Certified ProAdvisor and a manager in the tax department. She is also a graduate of the University of Alabama and began at JMF in 2004.

DAN JOHNSON is a new manager, transitioning to JMF in 2014 as part of the Jessup, Ingram, Burns and Associates merger.

His previous experience includes working for a non-profit in Turkey and five years at a major regional accounting firm in Chicagoland. Dan has a Bachelor’s Degree in Accounting from Southern Illinois, and a Master’s Degree from Northern Illinois University. Johnson is a native of Oakwood Hills, Illinois and has a bachelor’s degree from Southern Illinois University and his master’s degree from Northern Illinois University.

RACHEL AARON began full time at JMF in 2010 as a staff accountant in tax and accounting after being an intern during the 2009 tax season. She is a recent graduate of the Alabama Society of CPAs Leadership Academy and has undergraduate and master’s degrees from the University of Alabama.

ANDREA ARMSTRONG worked as an intern for 26

JMF during the 2011 and 2012 tax seasons and then joined the firm fulltime as a staff accountant in October 2012. Andrea is currently the President of the West Alabama Chapter of Accounting and Finance Women’s Alliance, and is a member of the ASCPA Young CPA Cabinet. Armstrong is another UA graduate with both undergraduate and master’s degrees.

BETSY JARNIGAN began full time at JMF in October 2011 as a staff accountant in tax and accounting after working as an intern for JMF during the 2011 tax season. She is on the University of Alabama’s Accounting Alumni Young Professionals Board and also serves on the Exchange Club of Tuscaloosa’s Board and its Foundation Board.

Jernigan is also a graduate of the Alabama Society of CPAs Leadership Academy, and the recipient of the ASCPA’s 2014 Outstanding Young CPA Award. She, too, is a graduate of the University of Alabama with both undergraduate and master’s degrees.

THE CITY OF BAY MINETTE has hired TAMMY S. SMITH as its new finance director.

Prior to joining the city, Smith spent 12 years as a senior accountant/ auditor with Kubina, Hayles & Associates in Bay Minette. She also held positions at Faulkner State Community College.

Smith is a graduate of the University of South Alabama and has been a CPA since 1996.

CARR RIGGS & INGRAM has two new partners in Alabama:

MATTHEW TAYLOR provides attestation, compliance, and consulting services to construction entities, as well as a number of governmental entities. Additionally, he has specialized healthcare expertise in the longterm care industry where he provides audit, review, compilation, and consulting services. He is in the Oneonta office.

HEATHER BARBER provides audit, compliance, and consulting services primarily to financial institutions. She assists community banks with compliance services, loan and Bank Secrecy Act (BSA) review as well as internal and external audits. She also provides specialized expertise with SEC companies and FDICIA consulting engagements from the firm’s Birmingham office.

The shareholders of Richard, Harris, Ingram and Bozeman announced the promotion of SCOTT LEE to principal with the firm.

Lee, who joined the firm in 2006, actively practices in the firm’s tax and audit sectors, with emphasis in audits of local city school boards, not-for-profit tax and audit, and tax services to small businesses and individuals. He received his undergraduate and graduate degrees from Auburn University Montgomery.

PEARCE, BEvILL, LEESBURG, MOORE announced that THOMAS C. ZOEBELEIN has been promoted to director of tax research. Zoebelein blends 28 years of industry experience with sixteen years in public accounting.

He is active in several accounting and business organizations, including serving on the state and federal tax committees for the Business Council of Alabama and chairing the ASCPA State Tax Committee for the past five years. He has authored several articles on taxation that have been published in Tuscaloosa Business Ink and the Birmingham Business Journal. Additionally, he writes quarterly tax articles for the Alabama Society of CPAs. While in industry, Zoebelein served on national tax committees for the American Forestry Pulp and Paper Association, American Mining Congress, National Coal Association, and the American Textile Manufacturers Association.

These groups work closely with Congress on federal

tax policies affecting their industries.

Zoebelein joined the firm in 2004. He holds an undergraduate degree in accounting from Villanova University and a master’s degree in accounting taxation from Iona College.

TERRI LYNN WALLACE has been promoted from supervisor to manager for Borland Benefield, P.C. of Birmingham. Wallace will provide management skills for our clients in the audit and tax departments.

CONGRATULATIONS

ASHLEY TAYLOR was named Young Professional of the Year by EMERGE Montgomery! at a ceremony on February 3. Taylor is a manager in Jackson Thornton’s Business Valuation and Litigation Consulting group. She was selected from a pool of nominees who were judged on their commitment to overall excellence, leadership in their professions, commitment to their community, and leadership and innovation through professional and personal growth. She holds ABV and CVA designations and is a graduate of Auburn Montgomery’s MBA program.

The Andalusia Chamber of Commerce welcomed MISSY PIERCE of Rabren, Odom, Pierce & Hayes to their board of directors in January. She will serve a four year term. Pierce has 18 years of experience concentrating in tax, audit and business consulting.

She holds the CGFM, CITP and CGMA credentials.

Warren Averett announced that MAx KOSS, Director of International Tax, has been named to the Advisory Board of the Alabama Small Business Development Center (ASBDC).

The ASBDC strives to enhance economic growth in Alabama, by providing management and technical assistance to small businesses. The ASBDC facilitates relationships between community organizations, local, state and federal agencies, establishing a network of

resources for the business community. The ASBDC has initiatives to provide counseling and technical assistance for small businesses, government procurement and international trade.

Koss has 26 years of international tax experience to offer the program, and his primary focus at Warren Averett is identifying and resolving international tax and business issues. As an advisory board member for the ASBDC, Koss will help develop strategies to create and grow small businesses in Alabama and advise the Network’s leadership. He is serving a three year term, which began January 1, 2016.

COMMUNITY NEWS MACHEN MCCHESNEY announced the acquisition of Wolf & Taunton, a Montgomery accounting

firm effective December 1, 2015.

The 60 year old Auburn-Opelika firm made the acquisition in recognition of the growing needs of its client base.

“This opportunity presented itself through our relationships with Marcus Wolf, an alumnus of Auburn University, and Bobby Taunton, an alumnus of both Auburn High School and Auburn University,” said managing partner Marty Williams.

Wolf & Taunton began offering professional services in Montgomery in 1987 and was formed

by Taunton, who will continue to head the Montgomery office, and the recently retired Marcus Wolf.

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Moving in The RighT DiRecTion A R E P O R T F R O M T H E A S C PA’ S N E W D I V E R S I T Y A N D I N C L U S I O N C O M M I T T E E Emma Cole, CPA, Chair

T

in their industries.” The ASCPA has recognized the importance of informing, engaging and supporting our membership through the development and execution of diversity and inclusion strategies.

he AICPA noted in The Business Case for Diversity and Inclusion that “In order for our profession to remain relevant in an ever evolving global market and to remain competitive for talent and for clients, it is imperative that we attract and value diverse talent and enable that talent to attract and value diverse clients.” The AICPA asserted that a concerted diversity and inclusion effort is a “business imperative” to equip the accounting profession for significant demographic shifts, increased minority businesses and buying power, and broaden workforce diversity. Additionally, a recent study by Bersin for Deloitte found that “companies with the most mature and inclusive talent-management systems tend to produce better business results. These companies tend to have more cash flow per employee and are more likely to be innovators

In December 2015, The ASCPA formed a committee to champion diversity and inclusion within Alabama’s accounting community.

The 15 member ASCPA Diversity and Inclusion Committee consists of key ASCPA members and supporters from public accounting, business and industry, the public sector, and academia (collegiate and secondary). The committee’s objectives are aligned with the AICPA National Commission on Diversity and Inclusion’s goal of helping member, firms, and organizations “succeed in their diversity and inclusion efforts to attract and retain” a diverse workforce with an initial focus on ethnicity, race, and gender.

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CLASSIFIEDS

The committee has identified the following objectives to champion diversity in Alabama: • Leverage the success of existing ASCPA initiatives.

• Foster stakeholder engagement and build effective partnerships with other organizations to support diversity and inclusion initiatives.

• Provide resources to help member firms develop strategies to create awareness, address unconscious biases, expand their diversity “toolbox,” and increase support for diversity and inclusion efforts.

YOUR PRACTICE WANTED: We are North America’s leader in practice sales. If you are thinking about selling, contact us today for a confidential discussion.

• Propose strategies to promote the CPA brand and increase awareness of the accounting profession and opportunities among students in K -12 and college (including community colleges).

PRACTICES FOR SALE:

• Hoover CPA practice *Sold* • Southern Middle TN CPA near Huntsville *Sold* • CPA Northeast of Knoxville grossing $190K *Available* • Murfreesboro, TN CPA *Sold* • South of Nashville tax practice *Sold* • South of Knoxville CPA practice *Sold* • Central MS CPA *Sold*

• Identify opportunities to increase the number of minority students sitting for and passing the CPA exam.

• Develop programs and resources to nurture students through the talent pipeline and facilitate their engagement with the profession.

• Identify and address challenges to the retention and advancement of a diverse workforce.

For more info, contact Lori Newcomer, CPA at 888-277-6040 or LNewcomer@APSLeader.com.

• Develop key metrics and milestones to define, measure, and communicate committee objectives and outcomes.

It is important that the ASCPA membership is actively involved in the achievement of the identified objectives. Members are encouraged to volunteer to serve as guest speakers, mentors, hosts, or sub-committee members. Members are also asked to consider providing resources or sponsorship for diversity and inclusion initiatives. Additionally, members’ input, recommendations, and knowledge are important assets to the achievement of the objectives. Please feel free to contact any committee member or me at ecole43491@troy.edu.

AUDITOR SENIOR OR SUPERvISOR

Large public company in Birmingham seeks Internal Auditor Senior or Supervisor with a minimum of 2 years of audit experience or 4 years of relevant business experience. Public accounting firm experience is strongly desirable and bilingual in Spanish is a plus.

Send cover letter and resume to IAJobPostings@Gmail.com.

ASCPA DiverSity AnD inCluSion Committee memberS Jeannine Birmingham, CPA............................................President and CEO, ASCPA Jorja Bradford, CPA ...........................Assistant Professor, Alabama State University Courtney Bruce.................Revenue Examiner at Alabama Department of Revenue

SELLING IN 2016? READY TO BUY A FIRM?

Boyd Busby, CPA.. Executive Director, Alabama State Board of Public Accountancy

Considering selling your CPA firm this year? Knowing what your firm is worth is the first step. Contact us TODAY to receive a free no-obligation market analysis of your firm. Accounting Biz Brokers has been offering personalized business brokerage services to CPAs for over 11 years and we know your market. Our process is strictly confidential. Visit our website at www.AccountingBizBrokers.com to request additional information about the sales process.

Emma Cole, CPA ...................Lecturer of Accounting, Troy University Montgomery Connie Sheppard-Harris, CPA ...............................Sheppard-Harris and Associates Courtnie Harris, MBA.......................................................... Instructor, Miles College Keina Houser, CPA................................................... Tax Manager, Jackson Thornton Jasmine James ... Senior Accounting Student, Alabama State University and ASCPA

CURRENT LISTINGS:

Spring Intern

• Montgomery Area Gross $40k-SOLD • Virgin Islands Gross $480k

Jessica Juliano, CPA ...................................Executive Recruiter with Warren Averett Staffing and Recruiting

Kathy Brents, CPA, CBI Cell 501.514.4928 Office 866.260.2793 Kathy@AccountingBizBrokers.com

Audrey Marshall........................................... Business Teacher, Auburn High School Dr. Jenice Prather-Kinsey, CPA Professor at University of Alabama at Birmingham David Salters ............................... Director of Sales and Operations, Warren Averett

CONTROLLER

Staffing and Recruiting

City of Opelika seeks Controller with a minimum of 10 years of related experience. Requires CPA License and bachelor’s degree in accounting, finance or a closely related field. Master’s in accounting or finance preferred. To apply, go to www.opelika-al.gov. EOE M,F,v,D. Position open until filled.

Norris Watkins ... Business and IT Division Chair, Lawson State Community College Jaylon Williams..Accounting Student at UAB and Tax Intern at Lovoy, Summerville

Shelton

Brianne Wilson, CPA......... Assistant Professor of Accounting, Huntingdon College 29

AT THE NEXUS OF ACCOUNTING AND SOFTWARE TECHNOLOGY 30

Building a career from two passions

Over the last 16 years, I have been able to work with a lot of companies in several industries to find specific solutions for their software technology needs. For me, it’s not only about finding out what an executive or a manager needs to run the business, but also working with the end users to meet the company’s objectives. The side benefit of working with different industries (and a lot of very smart clients) is that we have developed several best practices. These evolved from our own innovations, and by observing our clients find creative ways to solve problems. Solving problems is certainly a characteristic of being a CPA. It just so happens that I’m looking at technology issues for clients instead of serving them in a more traditional accounting fashion. I’m living the dream that I had from a very early point in my life by melding my passion for both accounting and software technology. It became a more conscious choice as my career developed.

critical for companies to have the right partner to advise them on software business decisions. Once the purchase is made, continued software training and support is vital.

Using software to integrate multiple systems is a great way to streamline, given that we still see companies entering data as much as 5 times! In today’s environment, companies cannot afford to be inefficient.

My experience as a CPA has given me insight into the fact that clients want products to help them seamlessly serve their customers and business objectives. They don’t want to be bogged down with the stress of choosing software and managing that software; they want to conduct their business. Accounting firms offer sound accounting advice and infrastructure (hardware) companies are much more suited to consult on servers, disaster recovery and several other services. That’s why we have focused on what we do best. We act as the third leg on the stool by partnering with our clients’ accountants and external IT team. This allows us to be able to offer the best of implementation and support the client’s accounting and ERP software. I’ve been doing this now for 16 years and it is always gratifying for me to solve complex business problems by first understanding our clients’ pain points.

Being an experienced CPA gives me the expertise needed as the first step in solving an issue with technology.

During my senior year in high school, I was able to take both a bookkeeping class and a programming class.

Learning accounting processes, along with how to prepare and interpret financial statements, not only interested me but was a natural fit. But I also liked the idea that anything could be improved or automated through the right software and programming.

At the University of Southern Mississippi I majored in accounting and minored in management information systems. It just seemed a natural fit to merge these two interests together. Fast forward to my experiences with a regional laboratory, a multi-location urgent care/ medical care practice and later on with a hospital. I gained experience about reporting, about mergers and acquisitions and a ton of day-to-day accounting while acting as controller and vice-president of finance for these organizations.

We rely - a lot - on continuing education from ASCPA programs. Whether it’s online webinars, industry conferences or technology conferences there are subjects which expand my own professional development and get absorbed into how we run DLD Business Solutions. We always see one or more of our clients at these education events, and meet other CPAs to collaborate with on current issues, such as ACA compliance. We have made several contacts who we can call with a question. This is invaluable and such a gift. We have access to some of the most successful professionals, with the brightest minds, almost around the clock. What a benefit to ASCPA membership!

Every company I worked with always called upon me when they needed help extracting data from their accounting software or if they did not know how to use the software! I don’t know if I had “understands software technology” painted on my forehead, but I became the go to guy everywhere I went. It occurred to me that it would be great to assist companies in making the most of their software investment as my full-time career.

In the last few years I’ve become more involved with the ASCPA for all the reasons mentioned above. That relationship has reinforced for me that my being a CPA, able to combine accounting and my passion for technology, has put me in the right place at the right time.

I had an opportunity to work with a former Microsoft Dynamics GP Partner on accounting/ERP software. I led their Microsoft Dynamics GP team for several years before starting my own business, DLD Business Solutions, Inc. This is where my interests in accounting and technology really came together.

Technology is continuing to change at such a rapid pace.

Our team members at DLD must invest in education and specific software certifications just to keep ahead. It always surprises our clients how much we spend in this area. This trend is not going to reverse and new products, along with enhancements, are introduced every day. It’s

DENNIS L. DAY

CPA, CITP, CGMA DLD Business Solutions, Inc.

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SuCCeSSFuL neGotiAtinG in Corporate America thrives because of successful negotiations. And not every negotiation table has a client on the other end. Opening negotiations with employees, giving them a voice in the direction of the business, takes the success of negotiations to new levels. What makes some negotiations successful and others dead in the water?

Conducting a successful negotiation requires the use of six major skills.

say in a recent Business Innovation Factory article, “But my experience – and in fact, my scars – are from bumping up against the same organizational hurdles that improv is so effective at helping companies get over – challenges that include connecting with customers, engaging employees around change, moving into new markets, innovating new products and services, working without a script.”

Have you ever watched preschoolers play with blocks? They take turns stacking them on top of each other until it gets so high it just topples over- or they like to watch it fall and knock it over on purpose. But the point is that both of them have an agenda. They each want to pick up a block and put it on the tower and each one probably has an idea about what the tower will look like, but they keep building until they can’t build anymore.

THE 6 PRINCIPLES OF IMPROvISATION

All of the aspects of driving positive change inside the company depend on how well leaders in corporate America can negotiate.

That equates to how well business professionals can handle blocking. Blocking happens every day. It is something brought to the table that was unexpected. It halts forward momentum. It is something that doesn’t neatly fit inside the box of your agenda.

We are more likely to succeed in negotiations when both parties can envision a common goal. And that is what improvisation teaches.

To set aside personal agenda and ego and take whatever the other person gives you and go with it. The glue that ties it all together is the principle of “Yes, and…” Successful people all intuitively do this. They just don’t necessarily realize that they are using improvisation in their daily lives.

Daena Giardella teaches an improvisational leadership class at MIT’s Sloan School of Management. She spends an entire lesson on teaching how to avoid using the most common block, the “yes, but.” In an NPR article, she points out, “Even though you say, ‘Yes,’ the but says, Yeah, but that’s not really valid because here is the better point.“ Negotiations can quickly come to a grinding halt when “yes, but” comes to the table. It is when emotions get heated and time gets wasted.

To succeed in negotiations, we need to drop our agendas long enough to truly listen— and with respect for all involved. It is true for formal negotiations around a conference table and is the way to success in the daily negotiations of life and career—during a chat with the boss or with one’s spouse, or with a child. This is the kind of straight talk we can cultivate that truly will make the biggest difference.

These six skills will ensure every negotiation has the potential to end with a positive solution: 1. Take your ego off the table.

2. Respect the other party.

3. Be in the moment (focus).

4. Listen to the other party’s needs & wants.

5. Adapt to the situation.

6. Yes, and…

These steps truly help in removing emotions from the table. Heated emotions can cause negotiations to shut down. They are more likely to end in a stalemate with wasted efforts. Anthony K. Tjan wrote in a Harvard Business Review blog, “Time and emotion — these are the two things most often wasted during a negotiation.” And he is very right.

We tend to react emotionally and negatively to any points of negotiation that oppose our own agenda. And that wastes time. When our goals for a negotiation are so firmly anchored that we cannot budge, it becomes hard to see any common goal as a solution. Instead, emotions kick in, and egos inflate—and we cease to listen. All we hear is our own voice in our head trying to find a way back to what we want.

SKILLFUL NEGOTIATION IS ROOTED IN IMPROvISATION Tom Yorton was once in the corporate ranks before becoming CEO of Second City Communications, the business solutions division of the world-renowned comedy company, The Second City. He had this to

Time to remember the 6 principles of improvisation!

Listen to the other party’s needs. What are they really saying when they block your proposal? Be adaptable by taking your ego off the table. Take a deep breath if you need to and then let the next words that come out of your mouth be “Yes, and…” A successful negotiation is birthed from being able to rebound, to take the blocks and build with them. That is how you connect with other people.

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Peter A. Margaritis, CPA is a speaker, educator, trainer, humorist, and self-proclaimed chief “edutainment” officer for The Accidental Accountant™. Partnering with the Business Learning Institute, his firm helps accountants and other business leaders to increase their profitability by strengthening their business success skills and improving morale through better communication. He is a member of the Ohio Society of CPAs, Georgia Society of CPAs, National Speakers Association, and the American Institute of CPAs. Peter is also the Author of Improv Is No Joke: Using Improvisation to Create Positive Results in Leadership and Life. www.theaccidentalaccountant.com

________________________________ Peter A. Margaritis, CPA

AICPA ProPoses exPAndIng JoInt Venture wIth CIMA Legendary investor Warren Buffett has a saying: “Someone’s sitting in the shade today because someone planted a tree a long time ago.” This quote underscores the importance of anticipating and preparing today for the opportunities and challenges of tomorrow.

The CPA profession has a long history of doing just that.

Alabama Society of CPAs and the American Institute of CPAs (AICPA) currently are working on a wide variety of initiatives to enhance the relevance and vibrancy of the profession far into the future. These initiatives include programs to promote the value of CPAs as trusted business advisors, enhance audit quality, broaden the definition of attest, help firms identify and remedy issues during A&A engagements, evolve the Uniform CPA Exam, attract the next generation of talent, and meet the information and educational needs of members in public accounting, business, government and specialized services.

In response to the needs of members working in corporations of all ownership structures and sizes, the AICPA formed a joint venture with the Chartered Institute of Management Accountants (CIMA) in 2011.

CIMA is the world’s leading and largest professional body of management accountants.

Founded in 1919, CIMA represents more than 227,000 members and students operating in 179 countries, working in industry, commerce and not-forprofit organizations. In January 2012, the two organizations launched the Chartered Global

Management Accountant (CGMA) designation. The number of CGMA designation holders is now more than 150,000 worldwide, with over 50,000 in the U.S.

ethics and quality, and protect the public interest and the core values of the CPA profession.

What we would gain through this new association with CIMA is the further professionalization of management accounting.

Financial reporting is stronger when we drive quality in both public and management accounting.”

Trends Driving Need for Evolution| The CPA profession has a history of anticipating – and adjusting to – changes in market demands. The profession has grappled with and developed solutions to address increasing complex technology, specialization, and evolving business structures; these drove such evolutionary steps as the computerization of the CPA Exam, non-CPA firm ownership and the adoption of cloud computing solutions.

Current trends and challenges on the horizon have been carefully assessed by the AICPA as part of its ongoing strategic planning process. With record membership numbers and the CPA reputation at the highest level, the AICPA believes that the time is right to pursue a proposal that will better enable the profession to tackle such factors as:

Now, the AICPA and CIMA are beginning a conversation with their respective members about a proposal to integrate their operations, strategy and management through a newly formed association. The AICPA would continue to serve members and protect, promote and grow the CPA profession.

The new association aims to maximize efficiencies and provide a broader platform for further enhancing advocacy, promoting public and management accounting on campuses and with employers and clients, and developing new research and educational offerings. According to Arleen Thomas, CPA, CGMA, AICPA Senior Vice PresidentManagement Accounting and Global Markets, “A presence in Europe will dramatically increase our ability to advocate for members on international matters that are increasingly impacting the U.S. securities system. In addition, the proposal would enable the profession to achieve even greater influence domestically and internationally and broaden the appeal of accounting to the next generation of professionals.”

The growing worldwide talent shortage and associated demand for ever higher levels of specialized knowledge and services

Unwavering Commitment to the CPA | “Our strategy is built on the power of ‘And,’” said Barry C. Melancon, CPA, CGMA, AICPA President and CEO. “The AICPA would continue to maintain an unwavering commitment to the CPA, promote high standards for

Significant demographic and generational shifts | The increasing number of accounting graduates bypassing professional affiliation and the associated commitment to a professional code of conduct

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The shift of economic growth toward Asian and emerging markets The greater international mindset of today’s graduates and the overall trend toward more international connectedness and interdependencies Regulatory impact coming from Europe and other parts of the world that are affecting businesses in the U.S. The need for finance professionals, facing an increasingly competitive job market, to differentiate themselves from their peers and demonstrate greater strategic management and business partnering skills Building on Existing Joint venture’s Success | Approximately 50 percent of most state CPA society and AICPA members work in businesses of all sizes and ownership structures.

Creating the CGMA offered these professionals a complementary designation and enhanced resources. Since the designation’s launch, the American Institute of CPAs and CIMA have delivered nearly 120 reports and tools plus online events and career development resources to members seeking to increase their knowledge and hone critical skills for the future. The organizations also developed the CGMA Competency Framework and the Global Management Accounting Principles.

In addition, so that members and employers could better assess and address accountants’ skills and competency gaps, the organizations launched the AICPA | CIMA Competency and Learning platform. The tool also analyzes

REMEMBERING

Benefits of the Proposal | “We are supportive of the direction the AICPA Board is recommending,” said President and CEO Jeannine Birmingham. “The changes this profession faces today are greater than ever.

To preserve our relevance and stature, the profession needs to embrace change and consider innovative ways to better anticipate, reflect and lead. The work between the AICPA and CIMA has contributed greatly to the professionalization of management accounting, and that is much needed today. The proposal would bring together the entire accounting profession and extend the influence of a CPA-led accounting profession in the U.S.” Strengthening the bond between the two organizations would streamline resources and create efficiencies to help both organizations move faster to market and produce content with broader perspective, especially on international business issues, which are increasingly impacting CPA firm clients. In particular, the AICPA cites the gains in advocacy that could be realized when speaking on behalf of more than 600,000 current and next generation accounting professionals. The association of the AICPA and CIMA would form the most influential body for the accounting profession, within the U.S. and globally, advocating on tax, audit, financial reporting and other issues important to members.

What’s Next? | Gaining member insights into the AICPA and CIMA evolution is critical to helping the Institute’s governing Council determine its next course of action. Council will assess member feedback and consider authorizing a member ballot in the spring.

Moving forward would require a vote by members, with a majority of those voting supporting the proposal. CIMA has a similar requirement and timeline.

Christy Lee Whitaker February 19, 1962-January 13, 2016 | Madison, Alabama | Certificate #6618 Whitaker was born in Biloxi to an Air Force family. Her life was filled with joy, adventure, wonder and so much love. She was graduated from Judson College with an accounting degree and earned a MAcc from Auburn.

She met and married Colonel Marvin Whitaker in Huntsville in 1985 and she remained his constant companion, best friend love of his life and mother to their two children. Whitaker is remembered as a faithful and incredible Army wife, serving soldiers and their families with love and dedication for more than 29 years.

Whitaker was a precious and kind spirit, enjoying traveling, reading and spending time with family and friends. She as an avid runner and ran marathons with her husband and running buddies. The family has asked that any memorials be made to the Tribute Fund established in her name through the LUNGevity Foundation at LUNGevity.org.

CharLes Lester “skip” MCQuaid December 5, 1942-January 14, 2016 | Geneva, Alabama | Certificate #9638 McQuaid was born in Boston and served in the Coast Guard for four years. For more than 25 years he owned and operated The McQuaid Group in Geneva and was known as the “tax man”.

He loved his family very much and was involved in his children’s lives, especially as a coach for their ball teams. He was a diehard Auburn fan and became a Mississippi State fan once he had a granddaughter attending school in Starkville. He left behind four daughters, one son, a sister, 19 grandchildren and three great-grandchildren.

GR WTH It’s what CGMA stands for.

Officially, of course, it’s Chartered Global Management Accountant.

A new designation representing accomplished professionals that drive and deliver business success, worldwide.

Find out more at cgma.org

Copyright © 2012 American Institute of CPAs. All rights reserved.

public accounting skills, such as those related to assurance as well as employee benefit plan and governmental audits.

CGMA designation holders also have access to the CGMA Magazine, the CGMA Finance Impact Tool, numerous reports and case studies on best practices, and the Harvard ManageMentor online learning and performance support resource program.

The website cgma.org is the hub for all of these resources and more.

Members are encouraged to visit aicpa. org/horizons to find out more about what they could gain from a deeper relationship with CIMA and provide feedback on the proposal.

CGMA_ThirdPage_ADS_cobrand.indd 4

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Quessons to Ask Yourself

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Was the INVENTORY Year-End Count a difficult process this year?

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Are you MANUALLY entering a lot of data every day?

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Would you like to monitor and control LABOR costs?

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Has Management asked for Operational and Financial DASHBOARDS in real time?

Do you have approvals in place that you can monitor through WORKFLOWS?

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Let the team of DLD Business Solusons and Microsoo Dynamics GP assist you in meesng your business objecsves this year.

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