AZ CPA March April 2015

AZ

CPA MARCH/APRIL 2015

The Arizona Society of Certified Public Accountants

Life Member Carolyn Sechler Choosing the RightTablet What’s in Store for the Profession in 2015? www.ascpa.com

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AZ

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MARCH/APRIL 2015

Which Tablet is Best

Volume 31 Number 3

for You?

Which Tablet is Best for You?

15

The market for tablets is vast - find out what things you should consider when purchasing one.

by Will Fleenor, CPA, Ph.D.

2015 Holds Great Promise for Accounting Profession

20 At a time when businesses are battling unprecedented complexity and uncertainty, our profession has the opportunity to build a pathway to prosperity. The president & CEO of the AICPA sets the stage for what’s in store for 2015.

by Barry Melancon, CPA, CGMA

Features Carolyn Sechler, CPA, Honored as ASCPA Life Member

11

Modern-day Renaissance woman Carolyn Sechler has served the profession and community for more than 27 years.

by Patty Gannon

Arizona Society of Certified Public Accountants 4801 E. Washington St., Suite 225-B Phoenix, Arizona 85034-2021 www.ascpa.com

4 AZ CPA y MARCH/APRIL 2015

Columns & Departments 6

Chair’s Message by Anita Baker, CPA

7

Focus on Members

8

ASCPA Board Highlights

9

A Dash of SALT by James Busby, Jr., CPA

22 Classifieds 23

In the Black ... Adventures in Accounting

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

Anita Baker Rob Dubberly Greg Nelson Gary Fleming Randy Fletchall Diane Groover Mike Holt Bill Judge Adam Miller Molly Montgomery Jennifer Nordstrom Vanesa Romero Sandra Torre Jared W. Van Arsdale Craig Van Slyke

Immediate Past Chair Karen Abraham AICPA Council Members Karen Abraham Armando Roman Chapter Presidents Southern Chapter Northern Chapter Southwest Chapter North-Central Chapter

Flo Zenblu Kay McConagha 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.

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

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Chair’s Message

by Anita Baker, CPA

Reflections of a CPA On March 31, my granddaughter turned one. It is amazing how much she has grown and changed in just one year, and it’s been very important to my husband and me that we are a part of her life. My son, Jeremy, just bought a house in Fountain Hills, so we will be five minutes away from them -making it easier to spend time with her as she grows and experiences life.

I hope that over the last year you have also grown in your knowledge of the profession and your ability to navigate the future and build your career as a successful CPA. I have certainly developed some new relationships and skills and enjoyed using my creative side to communicate with the members of the Society. Visits with members of Flagstaff, Prescott, Tucson and Yuma chapters allowed me to hear what is on your minds so we can bring ideas back to the Society. The Society staff provides excellent resources and support to the Executive Committee and Board of Directors, which allows us to focus on the issues that are important to you and to strategize on how we can continue to enhance your membership at the Society.

Being a CPA can be difficult, challenging and rewarding all at the same time. As I was going through some of my personal files, I found some notes from my first week as an intern at my firm. Here are some excerpts from those notes which I thought were quite interesting: Day One —“Overall, there was a lot of information to absorb, and I feel overwhelmed by it all. I am also very tired and need to get some rest because the next 2 days will be tax training!”

Day Two — “There was a lot of information thrown at us today, but they told us that by the end of February it will be second nature for us. I sure hope so.”

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Day Three — “After lunch we learned about partnership returns. The instructor asked us questions and made us feel like we didn’t know anything (and we surely didn’t).”

Day Four — “Today did not start out well. I had to make copies of confirmations and they got all out of order and mixed up. It took me 1 ½ hours to get them sorted out.”

Day Five — “Today I had some free time so I studied the tax manual, which was very boring. Working full-time sure is different. It seems like all I do is work, eat and sleep.”

••• As a new employee to the firm and not yet a CPA, I couldn’t imagine getting through my first year or even fathom the opportunities and experiences that I would have over the next 30 years. I believe that it is now my responsibility to mentor others and help them navigate the challenging times so they can embrace the opportunities and experience the rewards of being a CPA. Here is a summary of what I hope I’ve communicated to you through my monthly articles as Chair of the Society: • The Society is here to help you succeed in your career. Take advantage of the resources and the opportunity to network with other amazing CPAs, both at the state and national level. You can make a difference in the profession!

Anita Baker with her granddaughter Ava. • You determine your future both professionally and personally.

Make sure that you are thoughtful and goal oriented so you end up where you want to be.

• Ignite your passion and do what you love, while continuing to improve your knowledge and skills.

• • Embrace diversity and learn from others with experiences different from yours.

• Always look to the future and be willing to change and adapt to new opportunities.

• Be willing to take on new responsibilities that are beyond what you believe you are capable of.

• Lead and inspire future leaders by leveraging the strength of others and trusting in their ability to do it better than you can.

Never forget the value of the CPA brand and the responsibility to possess integrity and objectivity in all that you do. Thank you for your commitment to being a CPA and to AZ CPA the profession.

Focus on Members Janet Berry-Johnson, CPA, Austin Bradley, CPA, Kristen Janik, CPA, and Kelsey Olsen, from Henry & Horne LLP, worked with the Volunteer Income Tax Assistance (VITA) Program through the Valley of the Sun United Way to train volunteers to provide free income tax return preparation for lowto-moderate income taxpayers. They taught classes covering everything from filing status and dependents to capital gains and the Earned Income Tax Credit. The classes prepared the volunteers to pass exams required to become VITA volunteers.

Dan R. Williams, CPA, has joined Fenix Financial Forensics, LLC as senior managing director focusing on bankruptcy and restructuring services.

Julie Kern, CPA, managing partner of Bridge Financial Strategies was appointed as secretary of the Financial Planning Association of Greater Phoenix.

Henry & Horne, LLP announced the acquisition of Pittman & Murdough, PLLC. The merger became effective January 1. John M. Murdough, CPA, will be joining Henry & Horne, LLP as partner-in-charge of the firm’s new construction niche. Michael A. Gatson, CPA, will be coming on board as partner emeritus, and Laureen G. Song, CPA, is taking on the role of director of construction industry services.

Morrison, Clark & Conover CPAs announced the addition of their newest financial partner, Jared Asay, CPA, CCIFP. Lindsey Benson, CPA, manager at CBIZ MHM, LLC & Mayer Hoffman McCann P.C., became a Certified Construction Industry Financial Professional (CCIFP).

In Memoriam The ASCPA community was saddened by the recent passing of two CPAs who were instrumental to the growth of the CPA profession in Arizona.

Ken Husband ASCPA Past Chair Ken Husband passed away on Dec. 19, 2014. Ken was a Life Member and recipient of the ASCPA Public Service Award and an active volunteer. He made a difference in the many lives he touched throughout his 40+-year career. Ken worked as a CPA with Arthur Andersen for 35 years and then maintained his own small firm. He was dedicated to the community, making a difference on the various committees he served on including: The Phoenix Art Museum, Phoenix Rotary 100, The Beatitudes Campus of Care and Crisis Nursery. A champion of the CPA profession, he served for seven years on the ASCPA Board of Directors, 23 years on the Conference Committee of the Arizona Federal Tax Institute and two five-year terms on the Tax Practice Committee of the Arizona State Board of Accountancy. He was well known and liked by all and will be missed.

Gary J. Wood On January 12, 2015 we lost a valued member of the Arizona CPA family. Gary Wood was born in Bluefield, West Virginia on December 10, 1952. After moving to Arizona in 1961 with his family, he graduated from Washington High School and went on to graduate from ASU in 1975. Gary became a CPA in 1980 and had been self-employed since 1981. He married his wife, Pam, the same year. In 1991 Gary started performing AICPA peer reviews. In 2004, Gary was appointed to the Peer Review Committee of the Arizona State Board of Accountancy where he served with distinction until his passing. Over the past 10 years Gary spent countless hours without compensation helping firms who only performed compilations without disclosure meet professional standards. Gary had a great sense of humor and was very compassionate in helping others.

Flowers Rieger & Associates, PLLC hired Robert Schlichting, CPA, as a tax manager.

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Highlights of the ASCPA Board of Directors’ January Meeting Among other actions at its January 28, 2015 meeting, the ASCPA Board of Directors reviewed the following:

to making political contributions and how the Society is favorably viewed by legislators. Updates were given on several bills impacting CPAs and their insights on TOPS.

Consent Agenda

Day in the Life

The consent agenda, which included the board minutes, financial statements and Foundation budget, was approved.

Gary Fleming, Greg Nelson and Bill Judge shared the challenges and joys they experience in their lives and jobs.

2015-2016 strategic measurements

The Board approved the measurements.

Other Business

No other business was conducted.

Taxation of Professional Services (TOPS)

The Board decided to watch any developments in Arizona and other states related to TOPS, taking action, if appropriate.

Accounting Graduates Panel

The Board heard from four recent accounting graduates who shared their reasons for becoming CPAs (or not), their perceptions of other designations and information about their main influencers. Thanks to Heidi Frei for moderating the panel.

Legislative/Advocacy Update

Ryan and Kevin DeMenna informed the Board that one-third of the legislature consists of new members. They spoke about the Society’s non-partisan approach

8 AZ CPA y MARCH/APRIL 2015

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.

A Dash of SALT

Fundamentals of Nexus in Arizona: Municipal Sales Tax Nexus This month’s state and local tax (SALT) column addresses nexus limitations on Arizona cities’ and towns’ power to impose privilege (sales) taxes on proceeds from interstate commerce.

Unlike Most States, Municipal Sales Taxes in Arizona are Not Imposed by State Statute Of the 45 states that collect sales taxes, Arizona is one of just four that permit municipalities to impose sales taxes under their own municipal tax codes. The other 41 states impose municipal sales taxes under their state tax codes, collect the taxes centrally, and distribute a portion of the taxes they collect to their municipalities.

Because the municipal sales taxes in most other states are imposed by the states, when those states have sufficient nexus to collect sales taxes from transactions in interstate commerce, the municipalities in those states receive a portion of the taxes collected.

Out-of-State Retailers Only Have to Report Sales Taxes to Arizona Municipalities They Have Nexus With However, in Arizona, municipalities frequently are not entitled to collect sales taxes on proceeds from interstate commerce even when the state is entitled to collect state and county sales taxes on the same transactions. Such situations arise when an out-of-state retailer establishes nexus with Arizona and one or more municipalities in the state, but does not establish nexus with all municipalities in the state.

For example, assume that an outof-state retailer establishes nexus with Arizona by sending employees, or engaging an unrelated third party, to install products it sold to customers in Tucson over the course of several days, and that the retailer does not own or

lease property or have any other form of a physical presence in Arizona.

By sending employees or agents to Tucson to install products for customers over the course of several days, the out-of-state retailer established nexus with the State of Arizona and the City of Tucson. So, the state could require the retailer to file sales tax returns and pay state and county sales taxes on those transactions and any subsequent transactions with customers in Arizona during the same calendar year (even if the subsequent transactions are online transactions and do not involve installations or any other physical presence in Arizona by the retailer or its agents).

And the City of Tucson could require the retailer to do the same thing -- but only for transactions with customers located in Tucson.

However, in this scenario, the retailer only established nexus with the state and with the City of Tucson, so other municipalities in Arizona could not require the out-of-state retailer to pay sales taxes on proceeds from subsequent transactions with customers located within their municipal limits.

So, while Arizona municipalities value the autonomy that comes with imposing sales taxes under their own tax codes, that autonomy comes at a price.

Out-of-State Leasing Companies and Software Companies Establish Nexus With Arizona and the Cities or Towns Where Their Customers are Located

possession and control of personal property to their lessees or licensees and retain ownership of the property, out-of-state leasing companies and software companies establish nexus with the state and with the municipalities where their customers are located. Arizona law provides that these taxes are to be sourced based on the customers’ residential or primary business street AZ CPA addresses.

James G. Busby, Jr. is a state and local tax attorney and CPA at The Cavanagh Law Firm. Busby previously worked in the SALT departments at Arthur Andersen and Deloitte & Touche. Before entering private practice, Busby was in charge of all transaction privilege (sales) tax audits at the Arizona Department of Revenue.

A Dash of SALT ™ is provided for educational and informational purposes only and does not constitute legal counseling or other professional services. If you have any questions, please contact the author. He can be reached at (602) 322-4146 or JBusby@ CavanaghLaw.com.

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Carolyn Sechler, CPA, Honored as ASCPA Life Member

by Patty Gannon

Carolyn Sechler may best be described as a modern-day Renaissance woman. She is interested and involved in a myriad of professions, arts, community service projects and philosophies – and she has served and improved the CPA profession for more than 27 years. Sechler will be honored as a Life Member of the Arizona Society of CPAs at the Annual Meeting & Awards Luncheon on May 14, 2015.

Sechler is CEO and founder of Sechler CPA PC, a Certified B Corporation in Phoenix, Arizona. She describes her company as a “virtual accounting firm” where she specializes in serving more than 450 non-profits. She has 27 people on her team, all entrepreneurs who work from their homes, with several residing in other states and Canada. “We try to keep a small firm mentality here and we only work with companies and individuals who we believe in their mission.”

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An Early Adopter

One of the biggest contributions that Sechler has made to the profession is in the area of technology. She created the first website in the world for a CPA firm (www.azcpa.com) and was instrumental in helping to create the ASCPA’s first website. She has served on many technology committees, including the American Institute of CPAs’ Technology Research Committee and the ASCPA’s IT Committee. She is a Technology Advisor to the publication, The Tax Advisor, and serves as an editorial advisor to the Journal of Accountancy. She was featured in Accounting Today’s list of “Trailblazers in Technology” in 1997 and was selected as one of their “Top 100 Most Influential People in the Profession” in 1999-2001.

Sechler practices what she preaches and runs her “fully wired practice” from an office behind her home.

“The best part of technology is ‘the magic,’” says Sechler, “things like screen sharing and Skyping with people on the other side of the world.” The challenging part? “Keeping up with the tools and organizing data.”

How does she stay current on technology? “I read lots of blogs, surf the Internet and I’m in many groups on LinkedIn,” says Sechler. “I like to look at things from lots of different angles. The challenge with the growth in technology is there are so many different projects, programs and ways to do something.

I try to be open and like to try new technologies out first, using them myself before recommending them to others.”

Keeping it Green

Along with her passion for technology, she is equally committed to creating a better world through conservation and her green practices. Her firm was recognized for being “The Best of the World of B Corporations” in 2013 and was one of 60 B Corporations featured in Business Week magazine.

“If you are going to be a B Corp, you have to be very public about who you are,” says Sechler. “And that is great for clients. To receive the B Corp designation, you must be audited every two years and the criteria – including

12 AZ CPA y MARCH/APRIL 2015

a long list of how you give back to the community and care for the environment – is extensive.” B Corps are certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability and transparency.

Sechler was featured in an article in a past AZ CPA for her “green office” and continues to work virtually, with ergonomic low lighting and the sound of her chickens outside her window.

(Sechler has eight egg-laying members of her extended family.)

Giving Back

Giving back to the community is easy for Sechler; she is active in many, and a great variety, of nonprofit organizations. The range of her public service reaches from helping out her profession (on many state and national committees, including service on the ASCPA’s Board of Directors, Not-for-Profit Conference and Steering Committee, Information Technology Committee and Tax Legislation), helping in the business community (Arizona Society of Association Executives board member, University Club Board Member and President, ASU Nonprofit Management Institute Curriculum Design Committee, State Bar of Arizona speaker) to community service organizations (Raising Special Kids, Diaper Bank of Arizona, UMOM New Day Center, International Alzheimer’s Prevention Foundation).

“I like blending in and being part of a team,” says Sechler of her volunteer work. “I don’t want to be just the treasurer on the board. I want to learn and be in a learning environment.”

Sechler talked about a recent experience where she worked with the organization, We Salute, to bring military amputees together to play baseball. “I was so honored to be among those guys,” says Sechler. “They were so appreciative and happy to be there, but of course we are the ones who were appreciative. Doing something like that reshapes who I am.”

Sechler is a supporter of the arts in Arizona, and is an artist herself. In 2012, she held four one-woman shows of her

“The beauty of this work,” smiles Sechler, “particularly in nonprofits, is that I can serve many!” fine art photography. She likes to learn new cooking styles and is the founder of the Ukulele Monthly Meetup.

Even when she travels, she believes in giving back, and enjoys participating in volunteer vacations. Whether it is teaching women bookkeeping skills in Ghana, or delivering books to children in the jungles of Peru, she loves participating in and learning about various cultures. In the past few years, her travels have taken her to Japan, Iceland, Hungary, Cuba and the Yucatan Peninsula.

Helping Grow the CPA Profession

Sechler, with her emphasis on nonprofits, has made a definite commitment to give back in all areas of her life.

Her contributions to the accounting profession are no exception. She is grateful to some of her CPA mentors — Pat Kelly, Mark Schwartz and Bob Semple. “They were great people who took the time to show me the ropes and tell me there may be a better way

to do things.” She believes in helping members of her team to grow and become entrepreneurs, and also works with interns and students “to show them the art of the work.”

“I tell them to keep a healthy balance in their lives and to do what you love,” says Sechler who always schedules some sort of fun, evening class during tax season to make her get out of the office and keep the balance in her own life. She also recommends re-evaluating everything. She loves examining and reviewing processes and recommends that you ask someone different outside of your group for advice. Sechler feels accounting was a particularly perfect profession for her, as she loves fixing one problem and moving on to the next.

“The beauty of this work,” smiles Sechler, “particularly in non-profits, is that I can serve many!”

“Carolyn significantly impacts the profession in numerous ways,” says ASCPA President & CEO Cindie Hubiak.

“Society staff seek her insights about using inexpensive, powerful technology.

She alerts the Society when misguided legislation is proposed and provides historical information about legislative matters impacting CPAs. Her posts on social media provide resources to assist the Society in serving its membership.

Carolyn inspires me to keep improving myself as a CPA, to give back to the community, to live a curious, playful life and to live my values at all times.”

Sechler says she is “deeply honored” by being recognized by the Arizona Society of CPAs. “It is a source of pride to me to be associated with the Society.

I feel like I’ve been able to make a difference, and I feel like I’ve always been heard. I don’t get lost in the shuffle, and I feel valued.”

Her mantra for her own life is the advice she gives to her large extended family and to the next generation of CPAs: “Be honest, and do what is kind, necessary and true. After all, it is all AZ CPA about the LOVE!” Patty Gannon is senior manager of communications at the Arizona Society of CPAs.

Join us in celebrating Carolyn Sechler’s Life Membership at the ASCPA Annual Meeting and Awards Luncheon on May 14 at 11:30 a.m. at the Arizona Biltmore Resort.

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Which Tablet is Best for You?

by Will Fleenor, CPA, Ph.D.

The iPad was introduced only five years ago, and in 2013, 195 million tablets were sold. Even though 42% of American adults already owned a tablet, it was estimated that another 245 million tablets were sold in 2014. The market is large and there are many good choices. Which one is right for you?

The Decision Process

Some tablets are well suited for reading email and browsing web pages but not for watching movies or editing documents. Others are capable enough to replace a laptop or desktop. Are your needs basic, extensive or somewhere in the middle?

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By answering the following questions, you will be well on your way to deciding which tablet best suits your needs: • Which operating system do I want?

• What screen size is right for me?

• What hardware features are important to me?

• What do the reviewers say?

• Which operating system do I want?

Your first decision – and it is a big one – should be about the operating system. The operating system determines the type of user interface (i.e., touch only, touch and mouse) and what software a tablet can run.

Android Tablets

Android tablets not only make up the majority of the market but they have the most Apps (software that is operated by touch and often only runs on tablets and smartphones). As of June 2014, Google Play (the primary source of Android Apps) and the Apple Store (the only source of iOS Apps) claim to have about 1.2 million apps; however, there are many more Android apps available from additional Android App stores. One source claims that there are over one billion Android apps.

At first, the availability of more apps appeared to be an advantage for the Android operating system. Unfortunately, it is a huge disadvantage for business users. With Windows tablets and Apple tablets, all the Apps have to come from the company store. Microsoft and Apple carefully vet apps before they are placed in the store to ensure that they do not contain malware and work as advertised.

Android apps, on the other hand, can come from almost anywhere and apps that come from sources other than the Google Play store are not vetted

by Google. As a result, we have seen numerous instances of malware on Android devices. According to Forbes, in 2013, Android malware accounted for 97% of the known mobile device malware. About three percent came from Nokia’s axed Symbian platform. iPhone, BlackBerry, Palm, and Windows

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phones, all together, accounted for less than one percent.

This does not mean that business users should not buy Android tablets. It does mean that business users should be running third-party antivirus software.

There are numerous good products available including apps from Bitdefender, Avast!, McAfee, Kaspersky, and Norton.

The latest version of the Android operating system has all the whistles and bells that were once only available in the Apple world, like a voice powered voice assistant, find my phone, and the ability to wipe your phone remotely if it is lost or stolen. If you use Google Apps for Business instead of Microsoft Office, you will be pleased with the tight integration with the Android operating system. iOS Tablets (iPads)

Apple started the tablet revolution in 2010 with the first iPad. Businesses are clearly the primary purchasers of the iPad with 91 percent of all 2013 fourth quarter tablet activations being large corporate users. Because the majority of the iPad market is business users, it is well designed to meet the needs of businesses. It has a very secure operating system where the only significant instances of malware have been on iOS devices that were “jailbroken” to strip off controls. Some of the features of the iPad that are much appreciated by businesses include: • Highly secure operating system • Strong mobile device management tools for IT professionals

•

Internal storage that is encrypted by default and cannot be changed • Largest selection of high-quality business apps • High-quality hardware in an amazingly compact and attractive form factor • Availability of Microsoft Office apps There are some disadvantages to the iPad even for some Mac users. The apps on the iPad will not run on a Mac and vice versa. Windows 8.1 tablets run the full Windows 8.1 desktop operating system including the touch driven Windows 8 apps. Windows 8.1 makes it possible to learn just one operating system for both your tablet and desktop – and perhaps your phone. Many Mac users actually run Windows on their Macs to access corporate data and use corporate applications. Because iPads can’t run Windows, some Mac users may find iOS based tablets less useful than Windows 8 tablets. The following are other disadvantages of the iPad for business users: • No mouse • No USB port • No Multitasking (only one app on the screen at a time) • Lack of a file management system (Where is drive C: anyway?)

• Cost (pretty high for something that is only a tablet, not a laptop replacement) Windows Tablets

As mentioned previously, Windows tablets are like iPads in that all apps have to come from the company store.

Before an app even hits the Windows Store, Microsoft vets it to ensure that it works properly and does not contain malware.

Just like the Apple iOS, the Windows tablet operating systems (Windows 8.1 and Windows RT) have proved to be rock solid. However, unlike iOS and Android phones, the operating system cannot be jailbroken or rooted. Nokia calls the Windows RT platform “… the most secure mobile operating system in the world.”

Microsoft Surface Pro 3 • Started shipping 6/20/2014 • Full Windows 8.1 PC • Intel i3, i5, or i7 processor • Up to 512GB hard drive • 9 hours battery life • 2160 by 1440 high resolution 12 inch display • Weighs only 1.75 pounds – ¼ pound lighter than the Surface 2 • and more than a pound lighter than the 13.3 inch Mac-Book Air There are two different Windows tablet operating systems. The first is the

Windows 8.1 desktop operating system; this is the same operating system you would install on an HP or Dell workstation computer. It supports touch so apps have been developed for this operating system that work the same way apps do on iPads and Android tablets, meaning Windows 8.1 tablets can be used without a mouse or keyboard just like other tablets.

Windows 8.1 tablets can be replacements for laptops. With the release of the Microsoft Surface Pro 3 with a 12 inch screen, why would you want to have both a laptop and a tablet?

These machines that can serve as both a laptop and tablet are referred to as “Hybrids” or “2-in-1s.” In addition to Microsoft, other companies, including Dell, Samsung, HP, ASUS, Lenovo and many others, sell 2-in-1 Windows 8.1 tablets.

The second Windows tablet operating system is called Windows RT. It looks and feels like the full Windows 8 operating system with the exception of the software it runs. Windows RT tablets

will only run apps and those apps must be designed specifically for the Windows RT operating system. Windows RT devices will not run Windows 8 apps or traditional Windows software such as Excel and Word – although there are Word and Excel apps for Windows RT. The Windows RT operating system requires a less expensive processor that consumes less battery. The system was designed to run on small devices, like phones, and on tablets made to compete in the low end consumer market. These are not business machines unless all you intend to do with your tablet is read email and web pages.

Unlike the Apple iOS, the Windows tablet operating systems run on both Microsoft hardware and hardware from other manufacturers like HP, Dell, and Lenovo.

What screen size is right for me?

Tablet screen sizes range from seven to 12 inches. The following are some considerations in deciding screen size:

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Higher screen resolution is more important with larger screens A 16:9 aspect ratio is much better for HD TV and movies A 4:3 aspect ratio, still used for many still cameras and is better for photo display Web pages generally easier to read with 4:3 aspect ratio Many TVs and data projectors come with 4:3 aspect ratio – if you plan on projecting images, consider your projector and screen size The bigger the screen, the bulkier and heavier the tablet

What hardware features are important to me?

Performance is rarely an issue with tablets (other than Windows 8 tablets) and the speed of the processor is not usually a choice the way it is in desktop PCs. So, don’t worry about the processor; same is true for RAM. Internal storage is another issue. If you use your tablet to store high definition photos and video, storage can fill up quickly. On tablets that have USB ports, you can use flash drives to supplement storage.

Even on Windows 8.1 tablets you may want to rethink how big the hard drive needs to be. For security reasons, you want to carry as little sensitive information as possible; so the days of carrying out entire directories of files into the field, “just in case,” should be long gone. Further, with the advent of Cloud services, we don’t need to carry as much around with us on our mobile devices.

If you plan to do anything other than information consumption on your tablet, you will need a keyboard. Get a keyboard that has a good touch and feel and is backlit, since your tablet is your away from the desk machine and you may often have poor lighting.

Battery life may be important if you travel for a living and often don’t have the time or ability to recharge. As you might expect, smaller devices usually have longer battery lives. However, battery lives differ widely between tablets so you should take a look before purchasing. Replacing the battery in an iPad costs $99 if it is not under warranty.

the comments of the people who gave the product low ratings so that you will know what the potential problems are before they become your problems.

Another benefit of the product review sites is the list of features. Read through the list; probably lots of things are listed that you never even considered.

If possible, find a local store that carries the tablets you are considering. Pick it up and see how it feels. Two pounds is a lot to hold up, continuously, which is what you will be doing, often, if you use your tablet to read books.

Conclusions

Start by considering your needs.

What do you intend to use the tablet for? Consuming information like emails and Web pages or producing documents like you would on a laptop or desktop machine or something in between. Continue by matching up features with needs. Most users keep high end tablets more than three years so it is important to make the right AZ CPA choice.

What do the reviewers say?

It is always a mistake to buy something you are not well versed in without looking at the review comments. Read

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2015 Holds Great Promise for Accounting Profession

Several factors – from the pace of change to the complexity of business and standards, from audit relevance to regulators’ scrutiny – made it clear that our profession needed bold action to shape the audit function of the future. We know that quality can only be achieved and maintained with vigilance and dedication and the EAQ is a principal part of the AICPA’s ongoing commitment to excellence.

Advocacy

by Barry Melancon, CPA, CGMA

Whenever I think about all that is going on within our profession, I’m amazed at the breadth and scope of accomplishments and inspired by the people who make it all happen. From envisioning the future of learning to reinforcing a foundation of quality, we’ve never had a better opportunity to shape our future. The accounting profession achieved great success in 2014, thanks to several factors: hard work and quality services from CPAs, extensive advocacy efforts, forward-thinking initiatives and the joint efforts of the AICPA and the state CPA societies.

Looking to 2015, I’m excited about the AICPA’s agenda and the steps our profession will take to continue our growth as future-focused and client service-driven advisers for modern business. At a time when individuals and businesses are battling unprecedented complexity and uncertainty, our profession has the expertise and the opportunity to build a pathway to prosperity for our businesses, CPA firms, clients and the public. Let’s commit to making this year even more successful.

Quality

For 128 years our profession has staked its reputation on quality services delivered by competent and knowledgeable professionals. Quality is our foundation and is essential to supporting future growth and success. One of the most significant developments in 2014 was the launch of the AICPA’s Enhancing Audit Quality (EAQ) initiative, a comprehensive and multifaceted effort designed to reinvigorate the profession’s commitment to quality.

The basic EAQ framework was introduced in August in a discussion paper that solicited stakeholder comments on proposed short- and long-term quality initiatives. CPAs and other stakeholders provided suggestions now being considered

by AICPA teams, committees and/or boards. In a second paper, “Evolving the CPA Profession’s Peer Review Program for the Future,” the AICPA offered a thoughtprovoking concept for what practice monitoring could become. The initial concept is meant to start a profession-wide dialogue about meaningful change; changes we hope will help ensure long-term relevance and quality.

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Each year I’m privileged to see firsthand the partnership between the AICPA and state CPA societies as we address various issues from a legislative or regulatory perspective. I cannot overstate the importance of these efforts.

When we lead proactive campaigns to shape legislation, we’re really shaping our profession’s future. The alternative is to wait for legislation to shape our future for us. I’ll share a few examples of what we achieved in 2014 and set up some of the issues that could see movement in 2015: C a s h B a s i s : T h e p ro f e s s i o n successfully fought back an attempt to force some businesses to switch from the cash basis to accrual accounting for tax purposes. CPAs’ letters – more than 1,000 – brought significant attention to this issue and helped convince 46 Senators and 233 members of the House to sign bipartisan letters opposing the proposal.

DATA Act: Signed into law in May, the successful implementation of the DATA act concludes a five-year effort in close partnership with the state societies to improve the accessibility and transparency of business information. It was a meaningful – and hard-fought – win that reinforced the importance of stakeholder collaboration within the profession.

Mobile Workforce: The AICPA continues to support legislation that would establish a uniform national standard for any employee who works less than 30 days outside his or her state of residence.

Patent Reform:The profession continues to fight against patent trolls

who bring lawsuits against companies or firms for patent infringement for mundane daily uses of technology, such as scanning a document to email. The House passed a bill last year, but the Senate failed to act. We expect this issue will be a priority in 2015.

CGMA

This year also will be significant for members in business and industry because of new developments with the highly successful Chartered Global Management Accountant (CGMA) designation. Before its third birthday, the CGMA designation became the largest management accounting designation in the world, with more than 145,000 CGMAs globally. Through our joint venture and the release of new CGMA components, including the first universal set of global management accounting principles and a CGMA case study exam, the AICPA and the Chartered Institute of Management Accountants (CIMA) have built the foundation of the management accounting profession.

Human Capital

Of course, the most important part of our profession’s success is its people, and attracting and retaining the best and brightest has never been more important.

A major demographic shift is underway in the United States, putting a rapidly increasing percentage of entrepreneurial capital into the hands of minority-owned businesses. This shift means clients and employers of CPAs will expect more diverse workforces. We have to build a business environment that reflects life. The AICPA and state CPA societies see diversity and inclusion as a critical issue for long-term viability and we’re committed to helping our members meet the changing expectations of those we serve. Here’s something else to consider — at a time when competition for top talent is both global and fierce, the advantage will go to the firms and companies that have a plan to recruit, develop and

Over the last few years, increasing and record numbers of people have been majoring in accounting but the number of people taking the CPA exam has remained flat. retain a diverse workforce. The AICPA continues to produce resources that can help CPAs gain that advantage, including two that were launched last year: an Accounting Inclusion Maturity Model that helps organizations evaluate their own D&I practices, and a recruiting and retention toolkit with resources to help accounting leaders and human resources professionals attract, recruit and retain a diverse workforce. State societies have been essential partners in national diversity initiatives: several state volunteers have served on the National Commission for Diversity and Inclusion and many societies have launched local efforts to improve diversity and inclusion in their states.

Succession is another critical aspect of the pipeline. Each of us wants our profession to enjoy long-lasting success, but that is only possible if we prepare younger generations to fill the shoes of leadership in firms and organizations in the future. Virtually all states are investing in our profession’s future and today they develop future leaders through local leadership academies. Many of these state academies are modeled after the AICPA’s Leadership Academy, which today boasts nearly 200 graduates, many of whom are currently serving on professional committees, boards or AICPA Council. With the surge of Baby Boomer retirements, our profession needs to prepare leaders in the next generations.

On the topic of the talent pool, we have to make sure a sufficient number of CPAs are in the profession to continue the profession’s success.

Over the last few years, increasing and record numbers of people have been majoring in accounting, but the number of people taking the CPA exam has remained flat. A research project now under way will help us better

understand the factors causing the gap so we can develop strategic solutions.

History of Excellence

State society support will be critical this year as the AICPA tackles complex challenges and positions the profession for long-term success.

In past years, AICPA and state CPA society collaboration has yielded many meaningful initiatives that have changed the accounting landscape: Center for Plain English Accounting: The AICPA’s national A&A resource center for Private Companies Practice Section member firms. The Center’s resources provide local and regional firms the knowledge needed to succeed in today’s complex economic and business climate.

Financial Reporting Framework for Small- and Medium-Sized Entities: A special purpose framework that delivers robust and relevant financial statements in a simplified, cost-beneficial way when U.S. GAAP financials are not needed.

Great successes are within our grasp when we unite in the pursuit of common goals. Ongoing support from state CPA societies is both critical and sincerely appreciated. We are brought together as a profession and bonded as CPAs. I thank all of our members for your contributions to the profession, making it a model of service and quality, and for achieving success in 2014. The profession has a lot on its plate in 2015 and everyone at the AICPA and the Arizona Society of CPAs is committed to serving your interests and helping AZ CPA you achieve your goals.

Barry Melancon, CPA, CGMA, is President & CEO of the American Institute of CPAs.

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TUCSON CPA TAX PRACTICE AVAILABLE FOR MERGER/BUYOUT OR NEW PARTNER — Two retirement minded partners of a $1 million, primarily tax practice in Tucson seek a firm that wants to merge or buyout the partners over an agreed upon time frame. The practice is well established over the last thirty years and highly profitable with a strong concentration in business and individual tax preparation and consulting. Firm would also consider a strong candidate to buy into the practice. Firm has a no cost 90-day notice to landlord, if firm merges and cancels lease. Please send inquiries and desired goals to yazzr33@ gmail.com or CPA, 6590 North Regal Manor, Tucson, AZ 85750.

Employment SENIOR TAX MANAGER — CPA required. Prepare and review complex business tax returns. Part time position.

Dynamic firm. Paperless environment.

Highly technical. Qbooks, Lacerte, RIA and Practice CS are utilized. Flexible hours are available. Attach resume in pdf to lams12@aol.com.

TAX ACCOUNTANT — Epstein Schneider, 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.

Interested candidates may submit a resume to mark.schneider@epsteinschneider.com.

Tax Accountant -— CPA Firm —Scottsdale, AZ — Tax Accountant for non-smoking CPA office in Scottsdale, AZ. Please e-mail resume and two references to melissa@acrscottsdale.com. Bachelor degree in accounting required. 2-5 years experience to prepare business and individual tax returns and perform various accounting functions.

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Tax Manager — East Valley CPA firm seeking a Tax Manager to primarily review individual, partnership, trust and corporate tax returns. Other duties are involved as client needs dictate.

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CPA license required and Master’s degree helpful. Salary commensurate with experience. Please phone (480) 294-8900.

Tax Manager (Senior Accountant) — Pescatore-Cooper, PLC - Growing Scottsdale firm has an exciting, growth opportunity with an excellent “quality of life” work schedule and culture, on a flexible part time and/or full time basis. This position is for a Tax Manager or a Senior Accountant looking to move to the next level. Responsibilities include interacting closely with clients to provide tax planning, and compliance expertise; providing reviews of tax returns; and working closely with partners and staff on client management, practice development, and business development activities. Please email resume to: rachel@pescatorecooper.com.

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In the Black ... Adventures in Accounting I am putting $10,000 on the Buccaneers to win the big game in 2016!

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