AZ
CPA MARCH/APRIL 2013
The Arizona Society of Certified Public Accountants
Is Being An Introvert Really So Bad?
Assessing Risks — The Role of the CFO Monitoring Your Company’s 401(k)
www.ascpa.com
L LUMBARD & ASSOCIATES, PLLC Celebrates 20 Years Serving Not-for-Profit & Governmental Entities February 1993 to 2013
Thank you Arizona Society of CPAs for being a partner in our success!
4143 North 12th Street Suite 100 Phoenix, Arizona 85014 (602) 274-9966 www.llumbard.com
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Corrine Wilson
Joins REDW’s Phoenix
Principal Group Wilson Promoted to Principal Corrine Wilson brings more than 30 years of experience serving Tribal Government and Gaming industry clients, primarily in public accounting and auditing. Adding Corrine to the firm’s leadership clearly reinforces our commitment to superior client service and technical expertise. Welcome, Corrine!
Corrine Wilson
REDW’s Phoenix Principal Group
REDW on Path for Strategic Growth
Mike Allen
Sandy Abalos
Steve Harris
REDW merged with Abalos & Associates, PLLC and Miller, Allen & Co., P.C. in late 2012 to provide a broader range of services, a greater depth of technical experience, and a more dynamic infrastructure to support the evolving needs of our clients.
REDW – a growing firm dedicated to helping your business grow. Tom Friend
Barry Friefield
We’ve moved! Please note our new address: 5353 N 16th St, Suite 200, Phoenix AZ 85016
R E D W. C O M | 6 0 2 . 7 3 0 . 3 6 0 0 ALBUQUERQUE | PHOENIX
MARCH/APRIL 2013 y AZ CPA
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AZ
CPA
MARCH/APRIL 2013
Volume 29 Number 3
Assessing Risk — Why CFOs and Financial Managers Must Facilitate Risk Discussions in their Organizations
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Learn about the four major roles that CFOs and financial managers can plan in assessing risk. by Dan Chenoweth, MBA
Features
Is Being an Introvert Really So Bad?
How to Monitor Your Company’s 401(k) Plan — An Auditor’s Perspective
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17
Discover the ways that introverts are uniquely valuable to the success of their companies and how you can best communicate with them. by Heidi Frei, MBA, ABC
To minimize the chance that your company’s 401(k) plan runs into problems during the annual financial statement audit, consider these suggestions for being proactive with the monitoring process. by Rebecca Choate, CPA
Columns & Departments
Arizona Society of Certified Public Accountants 4801 E. Washington St., Suite 225-B Phoenix, Arizona 85034-2021 www.ascpa.com
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Chair’s Message by Armando Roman, CPA
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Focus on Members
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In the Black ... Adventures in Accounting
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Highlights of ASCPA Board Meeting
22 Classifieds
www.ascpa.com
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AZ
CPA
The Arizona Society of Certified Public Accountants
President & CEO
Cindie Hubiak
Editor
Patricia Gannon
Copy & Advertising Deadline The first of the month one month prior to publication date. Board of Directors Chair Chair-Elect Secretary/Treasurer Directors
Armando Roman Karen Abraham Anita Baker Rob Dubberly Debra Johnson Jimmy Lovelace CW Payne George Raysik Phil Reckers Craig Robb Andy Spillum Leslie Stackpole Elva Vivas Corrine Wilson Kevin Yeanoplos
Immediate Past Chair Mark Anderson AICPA Council Members Jim Buhr Rick Goldenson Chapter Presidents Southern Chapter Northern Chapter Southwest Chapter North-Central Chapter
Flo Zenblu Jennifer Nordstrom Jayne Wright Richard Joliet
AZ CPA is published by the Arizona Society of Certified Public
Accountants (ASCPA) to provide information, news and trends in the profession of accounting. It is distributed 10 times a year as a regular service to members of the Society. The ASCPA, its members, board of directors and administrative staff assume no responsibility for advertisements herein. The ASCPA and the above people also assume no liability for business decisions made by readers in reference to statements and/or claims in advertisements within this publication. Opinions expressed by correspondents and contributors are not necessarily those of the ASCPA.
Independence to succeed
We’re a partner in your success, a dedicated provider of solutions that are in your long-term interests and in the interests of your clients. We believe in adding value in a relationship, understanding your business and your goals and giving you independence to succeed. 602.240.2700 • azbizbank.com Part of CoBiz Bank • Member FDIC
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Arizona Society of CPAs 4801 E. Washington St., Suite 225-B Phoenix, AZ 85034-2021 Telephone (602) 252-4144 AZ Toll-Free (888) 237-0700 Fax (602) 252-1511
www.ascpa.com
ASMR Consulting LLC (480) 204-1289
refund@asmrconsulting.com www.asmrconsulting.com
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Chair’s Message
by Armando G. Roman, CPA
The Plan My 17-year -old son recently told me he wants to become a CPA. He asked me to help him plot out a chart so he can get there. He went on to say that he knows that’s been my plan all along, ever since he was a little kid. But the truth is, that was never my plan. Instead, my plan has been to expose him to many careers, many professionals, many events and activities, so that he could be more informed about careers as he grew up. Not having that advantage myself, it has been important to me that he and his brother and sister have that. He sat in a booster seat the first time I took him with me to a business breakfast. He accompanied me to visit clients at their offices, he has come with me to nonprofit board meetings, to business open houses, and been with me at client presentations. He and I flew to Atlanta once, when I served as a panelist at an AICPA conference. (He was 10 years old at the time.) My son has met lots of CPAs along the way, as well as attorneys, doctors and other professionals. Although it was never my plan for him to become a CPA, now that he has a direction—a focus— I’ll continue introducing him to more CPAs, so he can see the wide range of career choices within the profession. Being a CPA is an excellent career choice, even when it may become a springboard to something else. Last summer, I took my sons to meet the Phoenix City manager. We also met with the managing partner of a large law firm. Since both of these men are former high school wrestlers, and my sons are both wrestlers, the connection was instantaneous. One of them wanted to show my sons “his move,” the move that pinned all the other wrestlers before they knew what was happening. Something about a bad knee, actually
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Armando and his children deep sea fishing.
kept him from getting on the floor in his office to demonstrate “the move.” It’s been inspiring and motivational to hear these highly successful people tell their stories and to hear the obstacles they overcame. Both attributed success on the wrestling mat to success in their careers. The dedicated hard work and discipline learned there carried them through college and into successful careers. My daughter and I are now making an effort to visit with successful women. She’s convinced girls are smarter than boys, and I don’t argue that one bit. I encourage it. I want her to believe that with all her heart, so the self-confidence she has now will carry her through the long road ahead. This may be one of my many mistakes as a father, but I’m doing it anyway. Last year at age eight, she told me she wants to be a CPA. Finding successful women for her to meet seems to be easy since our
profession is so ameniable to women. She’s young and there is so much time ahead that I don’t want encourage or discourage her decision, I just want her to meet lots of successful women and come to her own conclusion. Maybe she’s already there. Maybe girls really are smarter than boys, and I’m the last one to figure that out. ••• As my term comes to a close at the end of April, I’d like to thank my fellow board members—it’s been a real pleasure serving with you—and Cindie Hubiak and her dedicated team at the Society who always “watch our backs” and keep their fingers on the pulse of this fine profession in our state. The nearly 6,000 members of the Arizona Society of CPAs are in AZ CPA good hands. AZ CPA
Focus on Members
The whole professional team at LUDWIG KLEWER & CO. PLLC spent a half-day working on two Habitat homes in the Tucson area. Angela Mack, CPA, (above right), one of their audit supervisors, is on Habitat’s audit committee. Bill Reeves, CPA, (top left) and Steve Mankee, CPA bottom left, are also pictured.
ASCPA member Ben Cilek, CPA, of Apollo Group, Inc., sent in this photo of himself on a 60-mile bike ride where he happened to see a Kachina that reminded him of the ASCPA Accounting Kachina!
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Focus on Members Matt Holdsworth, CPA, of Holdsworth & Company, is this year’s chairman of the Prescott Chamber of Commerce Board of Directors. The CPA firm of Flowers, Rieger & Associates, PLLC hired Gene Ross, CPA, as a tax manager. Sara Mercer, CPA, was promoted to wealth advisor at TFO Phoenix.
In Memoriam John “Jack” Joseph Weiman, III Earl David Schwartz
George M. Cohen, CPA, of Mcgladrey LLP, got the chance to play the field during his second Diamondback Fantasy Camp experience.
In the Black ... Adventures in Accounting
But please don’t webcast—
... and drive!
Concept: Heidi Frei Illust.: Jack Gannon
If you have access to the Internet, you can webcast just about anywhere ...
You can take almost any ASCPA course as a webcast. Go to www.ascpa.com to learn more.
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Highlights of Board of Directors’ January Meeting Among other actions at its January 23, 2013 meeting, the ASCPA Board of Directors reviewed the following:
Dialogue with the Accountancy Board Mark Landy and Monica Petersen, president and executive director, respectively, of the Arizona State Board of Accountancy, thanked the Society along with its lobbyist for their support and leadership in getting the bill that will update the Accountancy statutes to the legislature. The bill mainly clarifies definitions, consolidates and adds clarifying language to current statutes.
Consent Agenda The consent agenda, which included the board minutes, financial statements, Foundation investment policy and 2013-2014 budget were approved.
Strategic Plan and 2013-2014 Measurement The 2013-2014 measurements were approved by the board.
Nominating Committee Karen Abraham presented the Nominating Committee’s report to the Board. Karen thanked the committee members for their efforts.
Legislative Update Kevin and Ryan DeMenna from DeMenna and Associates, the Society’s lobbyist, talked about the need to educate new legislators on issues such as conformity. They shared that they flag all bills that may impact CPAs and thanked the Society for their quick response in addressing any issues. They also shared that sponsors had been secured for the Accountancy Board legislation.
Strategic Update Cindie updated the Board on the most recent Legends & Leaders session, along with updates on our first official national webinar and also encouraged
The Arizona Society of CPAs presents the
2013 Annual Meeting May 14 featuring guest speaker Greg Anton, Past Chair of the American Institute of CPAs Honoring Life Members Ira S. Feldman, CPA and Doug Norton, CPA
Arizona Biltmore Resort Register at www.ascpa.com
the board to attend Sharon Lechter’s book signing of Save Wisely, Spend Happily to be held on January 29.
A Day in the Life Board members appreciated hearing from fellow board members Craig Robb and Debra Johnson on the challenges and joys they experience in their lives and jobs.
Other Business Corrine Wilson encouraged board members to support the three-part women leadership series by sending their employees. If you have questions or would like additional information, please contact Cindie Hubiak at (602) 324-2888; AZ toll free at (888) 237-0700, ext. 203; or chubiak@ascpa.com.
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How to Monitor Your Company’s 401(k) Plan— An Auditor’s Perspective by Rebecca Choate, CPA
How often do you monitor your Company’s 401(k) plan? Once a year when the audit takes place? If so, you are not alone. Many executives believe they don’t need to do much to monitor the Company’s plan since the recordkeeping is outsourced; however, the Department of Labor (“DOL”) would disagree. According to DOL standards, plan management needs to substantiate that appropriate procedures are in place to monitor the plan. Often, problems can be avoided by paying attention to areas where errors often occur. To minimize the chance that your company’s 401(k) plan runs into problems during the annual financial statement audit, consider the following suggestions for being proactive with the monitoring process.
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Read the plan documents Make sure information in the summary plan description agrees with the information in the signed adoption agreement or other plan documents. You would be surprised how often they are not consistent. The adoption agreement is the governing document in the event there are inconsistencies. One common problem we see often is clients using the wrong definition of compensation to calculate deferrals. Make sure you are using the right definition of compensation to calculate deferrals and any matching contribution. Often deferrals and matching contributions are not calculated on bonuses or vacation payouts when they should be included based on the definition of compensation according to the plan documents. Additionally, consider selecting a few employees each pay period and recalculate the deferral and employer matching contribution. Another common problem we see often is clients improperly excluding employees. Make sure eligibility is being monitored and communicated in a timely manner. Often part-time employees are excluded from the plan when there is no provision to exclude them from participating in the plan according to the plan documents. Employees responsible for payroll and human resources must be aware of the terms of the plan and operate according to plan provisions. Exercise fiduciary responsibility Read and utilize “Meeting Your Fiduciary Responsibilities” published by the Employee Benefit Security Administration (“EBSA”) of the DOL. You can find it on the EBSA website at www.dol.gov/ebsa. Put a 401(k) committee in place to meet quarterly to review plan activity. Include employees from accounting, payroll and human resources on this committee. Record minutes during these committee meetings and retain them. With the significant number of investment failures within benefit plans, the complexity of investment alternatives, and the complexity of the tax laws covering the qualifications of the plan and fiduciary responsibilities of the Plan Administrator, it is important that plan management adequately document all due diligence over operations of the plan, including certain decisions made and actions directed or carried out by plan management. The 401(k) committee should meet at least annually to review investment returns and soundness of investments, approve discretionary benefit payments, including return of excess contributions, monitor tax and qualification compliance, approve changes to the Plan including change in responsible employees, change in third party administrator (“TPA”), and evaluate outside service providers such as TPA, broker, and auditor. In addition, if the matching contribution is discretionary,
it is recommended that you document the match amount within the minutes, even when no discretionary match is made. Obtain a copy of the Statement of Controls (“SOC”) report for both payroll and recordkeeping services at least annually and document the controls in place for each user control listed in the reports. If you are considering moving the plan to a new provider, I suggest you read “Tips for Selecting and Monitoring Service Providers for Your Employee Benefit Plan” issued by the DOL. When you are considering moving the plan to a new provider, ask for a copy of their most recent SOC report and review it to make sure there aren’t any significant deficiencies in their controls. Review plan activity At least quarterly, review the activity in the plan for reasonableness. Compare employee contributions made to the plan to deferrals according to the payroll system. Make sure contributions to the plan are timely. It is suggested that you remit deferrals to the plan within three business days of the pay date. The main thing to remember is to be consistent. If you remit earlier than three days, the DOL could say the earlier date is now the standard and all the other deposits are late remittances. Make sure forfeitures are being utilized according to the plan documents. Also, if allowed by the plan, make sure any force-out distributions are being done on a regular basis. Review plan investments Make sure you are reviewing investments at least annually or even semi-annually in a volatile market. Compare investments offered by the plan to the investment policy and to industry benchmarks. Make sure you have an investment policy in place and you understand the types of investments in the plan and how they are valued. Auditors are required to audit your assessment of investments in the fair value hierarchy. This means you need to gain an understanding of how the plan’s investments are valued and determine which level they belong in. Read and implement “Valuing and Reporting Plan Investments” issued by the AICPA Employee Benefit Plan Quality Center. Review payroll changes Often, errors are due to data entry mistakes when changes are made in the payroll system. To minimize such errors, make sure that one employee enters changes to payroll (salary increases or changes to deferrals) and another employee reviews those changes. Support for such changes should be retained in the employee’s file. When the review of the change is performed, have the reviewer sign off on the form that is retained, which will provide audit evidence that the changes have been reviewed.
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AXIOM
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Conservative, Prudent, Tax-Efficient Wealth Management Personalized services for high income, high net worth individuals and highly profitable business owners. • Investment portfolio management • Qualified plans / non-qualified plans • Implementation of CPA-advised investment strategies
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Registered Representatives offering securities and advisory services through Independent Financial Group LLC, a registered broker-dealer and investment advisor. Member FINRA/SIPC. Independent Financial Group, LLC and AXIOM Financial Advisory Group, LLC are not affiliated. Office of supervisory jurisdiction: 12636 High Bluff Dr., Ste. 100, San Diego, CA 92130.
Review compliance results Make sure the census that is submitted and used by the provider to perform compliance tests is accurate. When the results are available, review and take any action necessary to keep the plan tax compliant. Auditors often find errors in the census. A review of this information on the front end will save lots of time on the back end. Maintain employee files During the financial statement audit of the plan, auditors select individuals from the census for testing, which entails verifying the hire date, date of birth, termination date, etc. Make sure employee files contain this information and are easy to access. Also, if employees fill out paper conribution election forms, keep these in their file for support as well. If employees do not wish to contribute, have them complete the form electing zero and retain this in their file. This will serve as support for waiving their option to participate in the plan. Auditors also recalculate and verify gross payroll amounts so be sure to maintain support for salary increases in chronological order as well as support for loans and hardship withdrawals. As you can see, there are some important processes you should have in place to monitor your Company’s 401(k) plan. Implementing these procedures is fairly simple and will help minimize any issues during a financial statement audit as well as substantiate your fiduciary responsibilities if you ever undergo a AZ CPA DOL audit. Rebecca L. Choate, CPA, is an assurance manager at Lohman Company, PLLC. She is chair of the Accounting and Assurance Steering Committee and can be reached at rebeccachoate@lohmancompany.com.
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Assessing Risk
Why CFOs and Financial Managers Must Facilitate Risk Discussions in their Organizations by Dan Chenoweth, MBA We human beings are optimistic. Most of us focus primarily on what we get from a transaction. While we may also look for the downside, we tend to understate obstacles if we want the reward badly. We have high expectations for the unknown: often reflected by “hockey stick” revenue projections. We are over-confident about our abilities. Research indicates individuals will rate themselves in the population’s top 20 percent on almost any variable. Are you in the top 20 percent of CPAs? I am. Are you in the top 20 percent of safe drivers? I am. You get it.
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Teams are over-confident as well as individuals. That’s where we financial managers come in. We are logical, love data to support decisions, and are somewhat skeptical. If proposed actions could jeopardize the organization’s financial position, we search for the “cloud inside the silver lining.” Even if other senior executives are firmly behind a decision to launch a new product, enter a new marketplace or acquire another company, we generally seek further information to assure the reward is commensurate with the risk. From my perspective, there are four major roles for financial managers. Typically, we do an excellent job in the first three, but we can all use help with role number Four.
Research estimates less than 1/10 of one percent of risk events will cause at least 50 percent of corporate losses. Who in your organization is looking out for strategic risks and has the analytical skills to detect something that could jeopardize the company’s future success?
Role Number One – Financial historian and translator We must understand our financial statements and the cause/effect relationships that create value. We are good at connecting the dots and presenting financial information in understandable ways to non-accountants.
Role Number Two– Facilitate strategy discussions We are good prognosticators because we have to be. There is always next year’s budget to compile and periodic revisions as the year progresses. The budget quantifies the organization’s strategic initiatives and assumptions. Therefore, we must be a full partner at the planning table. I argue that the financial manager is better equipped than the other senior executives to facilitate strategy discussions. Why? Second only to the CEO, we see the big picture and focus on the bottom line. On the other hand, other senior executives focus primarily on maximizing their piece of the puzzle.
Role Number Three – Assessing and managing compliance risks Here is where we shine. We are intimately aware of risks associated with threats to monetary strength, profit
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margin or capital investment. Examples include cash flow, budget requirements, tax obligations, reserve requirements, creditor and debt management. We assure adequate internal controls are in place, insurance is sufficient, and the company complies with all tax, legal and other regulatory obligations.
Role Number Four – Assessing and managing strategic risks Our skills are probably weakest in this area, yet risk management is emerging as perhaps our most important, value-added role. Research estimates less than 1/10 of one percent of risk events will cause at least 50 percent of corporate losses. Who in your organization is looking out for strategic risks and has the analytical skills to detect something that could jeopardize the company’s future success? Examples: •Within days of the Japanese Tsunami and atomic energy problems, U.S. auto manufacturers had to cut back production. Only three companies make a certain critical electronic automobile components and they are all located in Japan! Sole sourcing a unique product is less expensive,
but leaves no fall-back plan when the supplier has a disaster. Who monitors similar risks in your company? • Wal-Mart stock prices plunged on news the company bribed Mexican officials to quicken expansion and then tried to cover up the corruption. There is always investor pressure for growth. When does a company “cross the line”? Who monitors these risks in your company? • Salmonella bacteria caused a recall of over 500 million eggs a few years ago. FDA inspections found the barns of two egg producers, Wright County Egg and Hillandale Farms, infested with flies, maggots and rodents, and had overflowing manure pits. Who in your company assures there is an appropriate productivity and safety balance? So what resources are available to us to take the lead in assessing and managing strategic risks? First, familiarize yourself with the comprehensive risk management guidelines provided by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). COSO’s Risk Management, Integrated Framework provides the definitive U.S.
risk management standard. Second, familiarize yourself with tools to PROACTIVELY anticipate strategic risk. Some examples: •The Risk Cascade Model (McKinsey and Company). This model looks first at “risk triggers” (changes in factors affecting your industry) then at how those risk triggers could impact your business activities. •The Heat Map plots the likelihood a risk event may occur against the magnitude of the event’s consequences. • Scenario Planning. In an everchanging, tumultuous world it may make sense to analyze more than one possible future and take “options” on key resources in each scenario. •War Gaming. Encourage your executive staff and other key employees to think out of the box. Divide into teams representing your company and your top competitors. Meeting separately, the competitive teams devise schemes to defeat your company while the company team
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determines ways to protect and defend your current position and weaken the competitors. This article explains why financial managers are best positioned to lead strategic risk assessment and provides some ideas to get started. I challenge you to accept the responsibility of assessing and managing strategic risks in order to both protect your company from unexpected events as well as to enhance your own position. We have the innate skills; you now have some AZ CPA of the tools. Go for it!
2013 Industry Conference May 24
Dan Chenoweth, MBA, is a CPA and a seminar discussion leader for Executive Education, Inc. For further information regarding this and other topics, watch for seminars presented by Executive Education, Inc. at www.ascpa.com.
Don’t Miss the Industry Conference led by popular instructors Dan Chenoweth and Bill O’Brien
Black Canyon Conference Center
• • • • • • • • • •
• • • • • •
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Is Being An Introvert Really So Bad? by Heidi Frei, MBA, ABC
When I was in grade school, I remember my parents coming home from parent teacher conferences and saying, “Your teacher said you are so shy and quiet.” I think that is the first time I realized that most people looked at introversion as a bad thing. Throughout my life people have been quick to point out, “You are so quiet.” I would usually respond, “Well, someone has to listen.” It became clear that I would have to make some adjustments to fit into our American culture of extroversion, without losing the benefits of introversion.
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Doing More with Less:
Lean Accounting and Management
March 19 12:30 - 4 p.m. ASCPA Learning Center
Arizona’s best resource since 2000 for
Cost Segregation Studies (480) 963-2872
costseg@costsegstudy.com www.costsegstudy.com
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When I saw the book “Quiet: The Power of Introverts in a World that Can’t Stop Talking” by Susan Cain, I knew it was a must read. I learned more about the strengths of an introvert and how they can be heard. Many CPAs consider themselves introverts, so I thought I would share some of what I learned. It is also helpful information for extroverts who manage introverts, so they can find ways to use the talents of an introvert more effectively.
Leadership When you think of top leaders of the past and present, there are some names that come up over and over like Steve Jobs, Richard Branson and Herb Kelleher. But do leaders really have to be extroverted and charismatic to be effective? Cain shares a study by Wharton management professor Adam Grant. Grant talked about some of the benefits of introverted leaders, “. . . introverts are uniquely good at leading initiativetakers. Because of their inclination to listen to others and lack of interest in dominating social situations, introverts are more likely to hear and implement suggestions. Having benefited from the talents of their followers, they are then likely to motivate them to be even more proactive.” Grant continued, “Extroverts, on the other hand, can be so intent on putting their own stamp on events that they risk losing others’ good ideas along the way and allowing workers to lapse into passivity. But with their natural ability to inspire, extroverted leaders are better at getting results from more passive workers.” Based on these observations, it would be important to examine your own organization to see what types of employees and culture you have. You may even see differences in departments, which may require a different type of leader from department to department.
Creativity Many creative individuals are introverts. Cain shares a creativity study from the Institute of Personality Assess-
ment and Research at the University of California, Berkeley. She reports that “the more creative people tended to be socially poised introverts. They were interpersonally skilled but ‘not of an especially sociable or participative temperament.’” Cain shared that new ideas often come to mind when people are working alone and uninterrupted, which is a common situation for introverts. Many of us have heard that brainstorming in groups results in the best ideas. She shared several studies that show this isn’t the case. Some of the barriers to developing good ideas are that some people do not speak up when they have great ideas, sometimes the leader takes the ideas of the most vocal member of the group, and some people are led to believe that the group has come up with the best decision. The studies did identify a type of group brainstorming that was effective, and that is through online collaboration, which allows for some of the “alone” time that is successful for idea generation from individuals and puts everyone at a more even level.
Some Famous Introverts Eleanor Roosevelt Warren Buffett Dale Carnegie Gandhi Rosa Parks Abraham Lincoln Steven Spielberg Steve Wozniak
How to Get Results from an Introvert Introverts need down time alone – asking them to interact in an all-day meeting and then attend a social event right after may be too much. Also, working in an environment of cubicles may be too distracting for the introvert. Introverts sometimes have difficulty showing emotion. They feel the emotions but sometimes do not express them clearly because they do not like conflict. Introverts respond more favorably to leaders who speak in a calm manner rather than using a loud, forceful tone to motivate. If you have watched “The Biggest Loser,” think Bob vs. Jillian. Introverts do better in smaller group communications. They prefer one-onone conversations, so they are more likely to be successful when they don’t have to compete with a large group. If small group communication is not possible, seek out the introverts after
meetings to see if they have any additional insights. Introverts like advance notice and an opportunity to review materials before a meeting. They like to limit surprises and analyze carefully.
When You Have to be an Extrovert To fit into the extroverted world, sometimes introverts have to go to uncomfortable places. There are times that you will have to give a presentation, drum up new business or attend a social event. It is almost impossible to be
completely introverted. Introverts find it easier to be extroverted when they feel passionate about something. To develop presentation skills, a good way to practice would be to give a presentation about something you enjoy doing. I have found Toastmasters to be an excellent way to practice in a safe, encouraging setting. It will allow you to practice impromptu speaking and prepared speeches. (www.toastmasters.org) Small talk can be one of the most difficult things for introverts to do. Preparation can be the key to success. Going to an event with a list of ques-
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connect
Communicate • Collaborate • Contribute The new, interactive online community only for ASCPA members
If you were on Connect — you were one of the first people to know about the changes in the American Taxpayer Relief Act of 2012 from experts like Ed Zollars. “As a member of the ASCPA, Connect has become my go-to tool. As the chair of the Not-forProfit Conference Committee, Connect provided a central location to easily communicate our progress without all of those pesky, in-box filling group e-mails. We planned our conference in record time and calendars and agendas are accessible to all Committee members. Connect has placed all of the resources I need in one convenient location. In just a few minutes a morning, I am able to scan the home page for new blogs, relevant discussions, or upcoming CPE and networking events. I may dash off a note to one of my colleagues or just
In the past month, Connect Discussion groups had 141 new discussion questions posted, as well as lots of great answers. Find out what you’ve been missing — get your questions answered and get Connected today!
check to see if I’m still the most active user. I invite you to join me on the active list and see how beneficial Connect can be to you.” —Sarah Zelhart, Controller, Tostitos Fiesta Bowl and Buffalo Wild Wings Bowl
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Join the discussion at: http://connect.ascpa.com
tions in your head to ask and answers for these questions will help you feel more at ease. One of the most common questions you will be asked is, “What’s new?” Being prepared to talk about your organization’s new service or a trip you just took will help you easily answer this question and start the flow of conversation. According to another researcher in the book, extroverts enjoy talking to introverts. “Extroverts need to know that introverts – who often seem to disdain the superficial – may be only too happy to be tugged along to a more lighthearted place; and introverts, who sometimes feel as if their propensity for problem talk makes it safe for others to get serious.” One of my most trusted colleagues in my field is an extreme extrovert. People have always thought it was an odd combination, but we have found the introvert-extrovert bond to be strong. Introverts love to listen, so asking a lot of questions and showing genuine interest in the answers will make you a favorite. If you still feel uncomfortable with networking, another tip is to practice by going to events for a favorite charity or other special interest. It will instantly give you something in common with the others to share your passions.
After getting over the initial discomfort of making a sales call, which may be difficult for an introvert, the actual sales process is well suited for an introvert.
Introverts may also be involved in the sales process. After getting over the initial discomfort of making a sales call, which may be difficult for an introvert, the actual sales process is well suited for an introvert. A successful introverted salesperson, Jon Berghoff, said, “I discovered early on that people don’t buy from me because they understand what I’m selling. They buy because they feel understood. I got to the point where I could walk into someone’s house and instead of trying to sell them some knives, I’d ask a hundred questions in a row. I could manage the entire conversation just by asking the right questions.”
Learn More The book includes an interesting history of how extroversion became the ideal, Cain’s theories on how the banking industry collapse was a result of a reliance on extroverts as leaders and strategists, and profiles of some famous introverts. In the end, I think you will see that one type is not better than the other and that both introverts and extroverts have an important part to play in the business world. AZ CPA Heidi Frei, MBA, ABC, is director of marketing & membership at the ASCPA. She can be reached at hfrei@ascpa.com.
Thanks to Members Who Have Contributed More Than $100 to ASCPA’s Political Efforts From Jan 1 – Feb 8 Karen Abraham Mark Anderson Anita Baker Jim Buhr Rob Dubberly Richard Goldenson Jimmy Lovelace
George Raysik Cindie Hubiak Debra Johnson CW Payne Armando Roman Andrew Spillum Leslie Stackpole
Elva Vivas Corrine Wilson Kevin Yeanoplos
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Classifieds Business Opportunities/ Practices for Sale WE BUY CLIENTS— Our CPA firm would like to offer a smooth transition in the purchase of your clients. We will purchase anywhere from one client, up to an entire practice in the Phoenix/Scottsdale metro area. If you are thinking of retiring or downsizing your practice and need to transition your clients to a professional CPA firm, please give us a call. Our staff has been practicing in the valley for over 30 years with an emphasis in business taxes and accounting. Our office is located near Thunderbird and Scottsdale Rd. Please contact us today for more information and ask for Craig (480)990-2727 orcraig@awcpas.com. CPA Firm For Sale—Northern Arizona CPA firm for sale. Primarily tax through estate and gift. Accounting
Problem with the Board? Contact: Former Accountancy Board Member
D. Jay Ryan Attorney at Law City North 5415 E. High St., #200 Phoenix, AZ 85054 (623) 937-3737 or (602)840-8075 (fax) Free Telephone Consult Mr. Ryan is a former Assistant Attorney General who represented the Board. The Board’s first lay member/ President Law Committee Member ASCPA Honorary Member
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through Review statements. Two to five year transition desired. Email northernarizonacpa@gmail.com
Employment Opportunities Audit and Tax Staff - all levels— Hammel, Beal & Lauer, P.C. —HBL is a locally owned and growing Tucson based firm seeking qualified audit and tax staff at all levels. We have a diverse client base with minimal travel. We offer competitive compensation and benefits. Recently graduated candidates should be on the path to certification, completing or enrolled to complete 150 hours, and preparing for or sitting for the CPA exam. Experienced staff should be in the process of certification or certified, depending upon the position sought. Experience with Lacerte, QuickBooks and with Prosystem fx Engagement paperless software is helpful. Nonprofit, ERISA and construction experience is very desirable. Reply to randallb@hblcpa.com. Tax Accountant—Epstein & Reynolds PLC—Growing CPA firm in Scottsdale seeks a Tax Accountant with 2-5+ years of recent CPA firm experience to join our team for preparation of business and individual income tax returns. We offer a paperless work environment, opportunity for growth and advancement, and competitive salary and benefits. Experience with ProSystems fx and Quickbooks a plus. Inter-
ested candidates may submit a resume to mark.schneider@epsteinreynolds.com. Senior Accountant—NHS Solutions, Inc.—Growing healthcare recruiting company in Tempe needs a Senior Accountant to manage payroll, sales commissions, customer billing and accounts payable. Experience with employee benefits administration is helpful. Position includes general ledger account reconciliations, financial and management reporting and vendor management. Email resume to accounting@nhsscorp.com. Accounts Payable Specialist —Children’s Learning Adventure—A/P Specialist needed for growing multiunit business headquartered in Central Phoenix. Prior a/p experience required (AA degree &/or some college accounting coursework preferred). Must be sharp, detail-oriented, organized and self-motivated. Excellent career opportunity with advancement potential. Immediate need. Reply to reakin@ childrenslearningadventure.com. Senior Accounting Analyst —Oro Valley, AZ-1300389—FreeportMcMoRan Copper & Gold Inc. is a leading international mining company with headquarters in Phoenix, Arizona. We operate large, long-lived, geographically diverse assets on four continents, with significant proven and probable reserves of copper, gold and molybdenum. As a
Watch an ASCPA Webcast with Co-Workers and Save 33% Get your team together to watch a webcast and save on registration fees. Contact Jena Ford at jford@ ascpa.com
core value, we pledge to continuously improve in meeting our commitment to work in the most safe, inclusive, environmentally and socially responsible manner practicable. To apply: https:// fmi.taleo.net/careersection/2/jobdetail.ftl?job=320221&lang=en&sns_ id=mailto.
Upcoming 2013-14 ASCPA Conferences
Tax and Estate Planning Paralegal—Snell & Wilmer L.L.P.— Large regional law firm has immediate hiring need for a full-time Tax& Estate Planning Paralegal in its Phoenix office. Position primarily includes handling estate administration matters and preparing estate and gift tax returns for clients. Substantive knowledge of entity governance and administration also required. Minimum 5 years accounting experience is required. Experience in legal field is preferred. Bachelor’s degree required. CPA is preferred. Paralegal certificate from well-accredited paralegal training program is a plus. Snell & Wilmer offers a competitive performance-based compensation and benefits package. Send resume in confidence by e-mail to jobs@swlaw.com. No phone calls please. An Equal Opportunity Employer.
December 6 – Forensic and Litigation Services
Office Space
December 10 & 11 – Technology
FURNISHED OFFICE SPACE SUBLEASE—Tatum/Shea—Perfect setting for a CPA not wanting to work from home! Contemporary furnishings, highspeed internet, free parking, security system, water service, client reception area, conference room, kitchen and more. Pictures available. Asking $500/ mo. Contact Steve: 602.316.3246 or steve.bast@nucleusmarketinglab.com. Furnished Office—Beautiful office space at Hayden/Cactus. Conference room, Internet, all amenities needed. Office with seasoned/successful Financial advisor. Cross referral opportunity. Call Bruce 480-922-7044 ext. 102
Be sure to save the dates:
2013 May 24 - Industry June 14 – Financial Planning June 26 – Not-for-Profit October 30 – Construction Industry November 15 – Emerging Leaders November 7-8 – Arizona Federal Tax Institute
2014 January 10 – Accounting and Reporting Standards February 21 – Governmental Accounting
For more information or to register, go online to www. ascpa.com.
To place a classified ad, go to www.ascpa.com and visit marketplace. MARCH/APRIL 2013 y AZ CPA
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