AZ
CPA MAy 2015
The Arizona Society of Certified Public Accountants
Back From the Brink The CPA’s Role in Chapter 11 Reorganizations 2015-16
ASCPA Board of Directors
Career Success Begins with Your Actions
www.ascpa.com
Connect your firm. Connect your clients.
Connect to ADP
®
At ADP, we’re all about connections — connecting accounting professionals like you to the right resources and opportunities to support your firm’s objectives. You choose the program that best fits your strategy: • Give your clients access to big-business payroll and HR solutions by referring them to ADP • Generate more revenue and simplify payroll processing with our customized platform for accountants • Discover other segments to invest in or retire sooner by selling your client payroll base to ADP When you partner with ADP, you also connect to integrated HR products, retirement and insurance* solutions and more — everything your clients need to help protect and grow their business. And everything you need to help drive growth and ensure peace of mind.
DOWNLOAD THE FREE STRATEGY BRIEF: Growing Your Business with HR, by going to accountant.adp.com/grow to learn more.
2 AZ CPA y MAY 2015 *All insurance products will be offered and sold through Automatic Data Processing Insurance Agency, Inc., or its licensed insurance partners. The ADP logo and ADP are registered trademarks of ADP, LLC. Copyright © 2015 ADP, LLC.
HR. Payroll. Benefits.
DEBT CAPITAL | SYNDICATIONS | TREASURY SOLUTIONS | RETIREMENT PLANS | INTERNATIONAL SERVICES
What’s Your Dream? What’s Your Plan? Everyone has a dream. Let us help you make a plan to get there.
Christine Nowaczyk | 602.808.5332 | www.bankofarizona.com
© 2015 Bank of Arizona, a division of BOKF, NA. Member FDIC.
MAY 2015 y AZ CPA
3
AZ
CPA MAY 2015
Volume 31 Number 4
Career Success Begins with Your Actions
17
Networking and seeking mentors and real-time feedback from your supervisors are fundamentally important to a rewarding accounting career.
by Todd McGee
Conversations with the Kachina Find out how your ASCPA membership can save you time and money.
Features 2015-16 ASCPA Board of Directors
10
Welcome the new Arizona Society of CPAs Board of Directors.
Back from the Brink — The CPA’s Role in Chapter 11 Bankruptcy Reorganizations
Columns & Departments 6
Chair’s Message by Robert E. Dubberly, CPA
CPAs willing to invest their time in assisting a Chapter 11 debtor may find the process both personally and fiscally rewarding.
7
Focus on Members
8
ASCPA Board Highlights
by David Wm. Engelman and Bradley D. Pack
9
A Dash of SALT by James Busby, Jr., CPA
13
22 Classifieds Arizona Society of Certified Public Accountants 4801 E. Washington St., Suite 225-B Phoenix, Arizona 85034-2021 www.ascpa.com
4 AZ CPA y MAY 2015
23
In the Black ... Adventures in Accounting
20
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
Rob Dubberly Greg Nelson Molly Montgomery Mike Allen Brenda Blunt Teresa Finley Gary Fleming Randy Fletchall Mike Holt Bill Judge Jennifer Nordstrom Mark Patton Vanesa Romero Curtiss Smith Nancy Thomas
Immediate Past Chair Anita Baker AICPA Council Members Karen Abraham Armando Roman Chapter Presidents Southern Chapter Northern Chapter Southwest Chapter North-Central Chapter
Cathy Poore TBA Jennifer Sullivan Ellen Carpenter
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
www.ascpa.com MAY 2015 y AZ CPA
5
Chair’s Message
by Robert E. Dubberly, CPA
The Role of Leadership in Our Lives As I began to gather my thoughts on what to address in this, my first column, one concept kept coming to mind and that was the role of leadership in our lives. We are bombarded every day with headlines addressing it (or, unfortunately, the lack of it). The lack of leadership has cost many a very high price, including personal reputations and careers. In my own personal life, and as a father of three boys, I find myself constantly speaking to these young men about this very topic. It seems leadership is needed in the school setting from the playground all the way to the classroom. Outside their school setting, it must also be displayed on the field or water when they represent their flag football, soccer or crew teams, as well as all of the events associated with their clubs. In addition, in my professional life as an audit partner, I encounter this very concept every day. It is present when I meet with aspiring new hires and again, it surfaces frequently in the discussions of the road map they have designed for their careers. It is also alive and well when I meet individuals who are pillars of our community and humbly and silently make a difference in our city by giving back. Leadership is my word of choice to describe the ASCPA Board members who will serve you this year. This group is representative of various geographical areas of our state, as well as different sectors of our profession. I am thankful that our Board is not only well represented by location, but equally, if not more importantly, they represent the diversity of our membership. Your Board has representation from large, medium and small public
6 AZ CPA y MAY 2015
accounting and consulting firms, locally owned businesses, publicly traded corporations, government, financial institutions, law firms, associations and healthcare organizations. Each of these individuals brings a unique perspective that will help us better address not only the current issues facing our profession, but also, will be well suited to address future matters and advise our organization. Leadership is alive and well in our organization. It has, and continues to be exemplified by many individuals. I feel compelled to mention a couple who have been instrumental in running this well-oiled machine. These individuals have demonstrated the finest leadership skills and have set the bar high for all of those who will follow. First, I would like to thank Anita Baker for her service this past year. I personally look forward to working with, and learning from, her. We are indebted to her for her time and passion and for the sacrifices she made in her personal life in order to serve as chair of the Society this past year. I wish her well and hope she has many hours of fun ahead with her new granddaughter!
Rob Dubberly is an audit partner in KPMG’s Arizona Practice. He begins his term as the 2015-16 Chair of the Arizona Society of CPAs this month. Second, I would like to mention Cindie Hubiak. She has been the CEO of our organization for the past 15 years. As such, she wears many hats, but she makes it all seem so effortless. I know she is instrumental to our Board and we appreciate her dedication and look forward to working with her as we get acquainted with our various roles and responsibilities. I’m certain it is the intent of all of us on the Board to continue the legacy of leadership, so well established by the many who have come before us. We are all excited to work together for the betterment of our profession. I hope that as our members, you too, will think about how you lead, both professionally and personally. We look forward to inspiring you to do so right here in our AZ CPA own organization!
Focus on Members The American Institute of CPAs recognized Matthew Robert Durette as a recipient of the 2014 Elijah Watt Sells Award. Durette is a graduate of Arizona State University with a Bachelor of Accountancy and a Master of Taxation, and is employed with McGladrey in Phoenix.
Matthew Durette Receives Elijah Watts Sells Award
Thala Rolnick, CPA, recently met with 10 Congressional staffers on small business tax issues in Washington, D.C. While there, she met with Tom Barthold on the Joint Committee of Taxation and eight of his staff regarding how they assist members of congress in both scoring and providing them tax provision input. She attended the Tax Analyst and Multi-State Tax Commission briefing on corporate taxation under formulary apportionment vs. arms-length treatment. She also co-moderated a small business roundtable at the Small Business Association office of Advocacy. Armando G. Roman, CPA, managing principal of AXIOM Financial Advisory Group LLC, has been appointed to the City of Phoenix Expenditure Limit Task Force. The Task Force initiates the quadrennial review process to carefully study the State Expenditure Limit effect on the City of Phoenix and will recommend a proposal for placement on the August 2015 City election. Alyce Abbott, CPA, was voted as a member of the Phoenix Rotary 100 board of directors.
“Initially, my goal was simply to pass the exams,” says Durette. “I had heard all the horror stories about the exams, and decided I needed to put forth my best effort. I knew I wanted to pass them all the first time around – I did not want to have to retake any. I spent plenty of time making sure I was comfortable with all the material, and it paid off. When I received my first score, I felt I would be able to continue that effort and achieve the EWS award. Throughout this process, I tried to embody the principles found in Stephen Covey’s The Seven Habits of Highly Effective People, namely being proactive, beginning with the end in mind and putting first things first. I found that there really is enough time in the week to balance my responsibilities and to achieve my goals.” The award is given to candidates who have obtained an average score above 95.50 across all four sections of the Uniform CPA Exam, passed all four sections of the Examination on their first attempt and completed testing in 2014. A total of 91,384 individuals sat for the exam in 2014, with only 60 candidates meeting the criteria to receive the Elijah Watt Sells Award. Durette was the only Arizona recipient.
Join us as we celebrate Carolyn Sechler’s ASCPA Life Membership; John Dallmus (ASU), the 2015 Excellence in Teaching Award recipient; and hear from our keynote speaker Past AICPA Chair Bill Balhoff, at the Arizona Biltmore Resort.
Arizona Society of CPAs
Annual Meeting
& Awards Luncheon May 14, 2015
MAY 2015 y AZ CPA
7
Michael Clinton, CPA, was nominated by Governor Ducey and confirmed by the Senate to serve a second five-year term on the Arizona State Board of Physical Therapy. Henry & Horne, LLP employees and their family members helped promote the importance of reading at a literacy fair put on by Valley of the Sun United Way. CBIZ and Mayer Hoffman McCann P.C. have recently been recognized for being #9 on the Accounting Today 2015 list of Top 100 Firms and as #2 Best Accounting Firm (26+ CPAs) as ranked by 2015 Ranking Arizona. Dr. Rufus Glasper, CPA, was recently elected to The Arizona Community Foundation’s Board of Directors. Mary C. Jordan, CPA, was admitted as a partner to Lohman Company, PLLC.
8 AZ CPA y MAY 2015
Carla Keegan, CPA, president and director of Taxation Services of Keegan, Linscott & Kenon, PC’s has received the 2015 Athena Award for her outstanding community service. The Athena Award is an annual award given by the Tucson Alumnae Panhellenic to recognize outstanding Tucson (sorority/fraternity) alumnae in the areas of Professional, Panhellenic, and Philanthropic achievement. Eric Lee, CPA, has joined Keegan, Linscott & Kenon, PC as a principal in the consulting services practice and will be the Phoenix practice leader for the firm’s Scottsdale office. Jared Asay, CPA, was promoted to financial partner at Morrison, Clark & Conover CPAs. Jennifer Mellor, CPA, was promoted to vice president of economic development at the Greater Phoenix Chamber of Commerce.
Newsworthy CPAs The Journal of Accountancy interviewed ASCPA Board member Adam Miller, CPA, in the March issue. ASCPA President & CEO Cindie Hubiak was profiled in Frontdoors magazine.
A Dash of SALT
Arizona’s Upcoming Amnesty Program This month’s state and local tax (SALT) column summarizes Arizona’s upcoming “tax recovery” program.
Arizona’s amnesty program applies to all taxes and surcharges administered or collected by the Department, except luxury and withholding taxes.
“complete and correct application” on a form that the Department will provide. The application must identify the tax liability, the qualifying period, and other information that the Department may require when it develops the application form. Taxpayers must include the appropriate tax returns and reports with the application, including amended returns and reports, if appropriate. If the application is based on an established yet unpaid tax liability, the taxpayer must include a copy of the latest billing notice. The application must be filed during the two-month amnesty period and include payment of the tax that is due. Taxpayers who already paid any penalties or interest during the liability period are not eligible for a credit or refund for such payments as part of the program.
Tax Periods that Arizona’s Amnesty Program Applies To
Some Taxpayers Cannot Participate in Arizona’s Amnesty Program
The “liability period,” or period that the amnesty program applies to, differs based on the filing period for different types of taxes collected by the Department. For taxpayers filing annual returns, like income tax returns, the program applies to all taxable periods ending before January 1, 2014. For all other taxpayers, the program applies to any taxable period ending before February 1, 2015.
The following types of taxpayers are not allowed to participate in the program: • Taxpayers who entered into a closing agreement with the Department for the tax period covered by the application; • Taxpayers who were a party to a criminal investigation or proceeding that was pending on January 1, 2015; and • Taxpayers who have been the subject of past tax-related criminal investigations that resulted in a conviction, a guilty plea, or a plea of no contest are not allowed to participate in the program.
Arizona Governor Doug Ducey recently signed SB 1471, which requires the Arizona Department of Revenue (Department) to conduct an amnesty program, officially known as the “tax recovery program,” for a two-month period from September 1, 2015 through October 31, 2015.
Benefits of Arizona’s Amnesty Program The Department is required to waive all civil penalties and interest for tax liabilities that have been or could be assessed during the “liability period” for taxpayers who comply with the requirements of the program.
Tax Types Included in Arizona’s Amnesty Program
The Requirements Taxpayers Must Satisfy to Participate in Arizona’s Amnesty Program To qualify for Arizona’s amnesty program, taxpayers must submit a
One Downside to Arizona’s Amnesty Program By submitting applications to participate in the program, taxpayers forfeit all administrative and judicial appeal rights related to the tax liabilities included in the application. Practice Tip! – Savvy CPAs who represent taxpayers that may benefit from Arizona’s upcoming amnesty program will make such clients aware of the program and help them determine whether it is in their best interest to participate in the program, and give up their appeal rights by doing so, or to continue challenging any outstanding alleged tax obligations. AZ CPA 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, he 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 at (602) 322-4146 or JBusby@CavanaghLaw.com.
MAY 2015 y AZ CPA
9
2015-16 ASCPA Board Members Teresa Finley ASCPA Director 2015-2017 Teresa Finley, CPA
Rob Dubberly ASCPA Chair Audit Partner , KPMG, LLP
Greg Nelson ASCPA Chair-Elect Vice President & Chief Financial Officer WorldatWork
Anita Baker ASCPA Immediate Past Chair Principal-in-Charge, Benefits Services Group CliftonLarsonAllen, LLP
Mike Allen ASCPA Director 2015-2017 Partner, REDW, LLC
Gary Fleming ASCPA Director 2014-2016 Tax Partner, Henry & Horne LLP
Randy Fletchall ASCPA Director 2014-2016 Randy Fletchall, CPA
Molly Montgomery ASCPA Secretary/Treasurer Owner, Ascension Consulting
10 AZ CPA y MAY 2015
Brenda Blunt ASCPA Director 2015-2017 Partner, Eide Bailly, LLP
Mike Holt ASCPA Director 2014-2016 Vice President of Tax GoDaddy.com, LLC
Bill Judge ASCPA Director 2014-2016 Vice President of Finance The Hunt Corporation
Jennifer Nordstrom ASCPA Director 2014-2016 Nordstrom & Associates
Mark Patton ASCPA Director 2015-2017 Attorney, Lewis Roca Rothgerber, LLP
Vanesa Romero ASCPA Director 2014-2016 Corporate Controller, Inteladerm
Curtiss Smith ASCPA Director 2015-2017 Sr. Vice President, MidFirst Bank
Nancy Thomas ASCPA Director 2015-2017 Chief Financial Officer U.S. Office of Navajo and Hopi Indian Relocation
Karen Abraham AICPA Council Member 2014-2017 Chief Financial Officer Blue Cross and Blue Shield
Armando Roman AICPA Council Member 2014-2017 Managing Principal AXIOM Financial Advisory Group, LLC
MAY 2015 y AZ CPA
11
Different
We think outside the bowl.
Specialty Insurance Programs tailored for CPAs,
and for your clients.
You’ve built a successful accounting firm. Does your insurance coverage protect it? CPA Insurance Program • • • •
CPA Coverage enhancements Data Breach / Cyber Liability Program Pricing Discounts Free Policy Review / Coverage Checklist
Business and Personal Insurance • • • •
Business Package Polices Workers’ Compensation Home and Auto Umbrella
Southwest Risk Management LLC 2855 E Brown Suite 28 Mesa, AZ 85213
ASCPA Preferred Insurance Provider for Property & Casualty 12 AZInsurance CPA y MAY 2015
(866) 924-7976 www.southwestrisk.com
Risk Management • • • • •
OSHA Compliance Safety & Employee Handbooks Occupational Triage Experience Mod Analysis Risk Management Consulting
Back From the Brink The CPA’s Role in Chapter 11 Bankruptcy Reorganizations by David Wm. Engelman and Bradley D. Pack
There is good reason many large companies utilize Chapter 11 as a restructuring tool. Chapter 11 bankruptcy affords companies and individuals to restructure their debt and regain their financial footing. A Chapter 11 bankruptcy also presents significant employment opportunities for CPAs, in addition to ordinary accounting services. Consider the following scenario. Carnet Construction, Inc. was in dire financial straits. While Art Carnet’s CPA had been advising senior management to scale back its operations due to a decline in revenues, management’s capacity for denial proved impervious to sound advice. Carnet fell 60 days behind in payments to its trade vendors and defaulted on its $250,000 line of credit with Globe Bank, which was secured by a blanket lien on all of Carnet’s assets. Worse, Carnet accrued over one million dollars in delinquent payroll taxes. The IRS responded by levying on Carnet’s operating account, seizing $150,000 in cash, causing Carnet to cease its banking system for fear of further levies. Globe Bank accelerated its loan and threatened repossession of its collateral. Two trade vendors filed lawsuits for non-payment. After Art Carnet’s consultation with the CPA and bankruptcy counsel, Carnet only had two realistic alternatives: liquidate or reorganize through a Chapter 11 bankruptcy.
MAY 2015 y AZ CPA
13
Who Is Eligible to File a Chapter 11 Bankruptcy?
With certain exceptions, partnerships, corporations, limited liability companies, business trusts and individuals (singularly or jointly) may file a Chapter 11 bankruptcy petition. Carnet Construction is a corporation and was therefore eligible to file a Chapter 11 bankruptcy petition.
Service. Innovation. Solution. Whether you or your clients are relocating to Phoenix, looking to purchase or lease a new building, or simply need to renegotiate the terms of your current lease, you need a commercial representative to work on your behalf. Call us today to discuss your situation!
menlocre.com • 480.659.1777 Increase your clients’ cash flow by unlocking the additional depreciation deductions buried in their real estate.
Cost Segregation Studies For a complimentary feasibility analysis of their property call Brizel & Associates costseg@costsegstudy.com (480) 963-2872 www.costsegstudy.com 14 AZ CPA y MAY 2015
What Are the Advantages of Filing a Chapter 11 Bankruptcy?
The Automatic Stay. The filing of a voluntary bankruptcy petition acts as an automatic stay of certain actions against the debtor (the person or company filing a bankruptcy petition) and their property. The automatic stay prohibits any creditor, including any taxing agency, from attempting to collect or assess any money or property. The automatic stay provided immediate relief to Carnet Construction. All IRS collections efforts, including its levies, immediately ceased. Globe Bank was prohibited from doing anything to enforce its lien against its collateral. The trade vendors’ lawsuits were halted. Continued Operation of Business. The debtor has the right to remain in control of its business, operating as a “debtor-in-possession” or “DIP.” The DIP must file schedules of its assets and liabilities at the beginning of the bankruptcy case and must file monthly operating reports, akin to a financial statement, for each month it is in bankruptcy. Carnet Construction and its existing management team remained in place throughout its bankruptcy. Rejection of Leases and Executory Contracts. A Chapter 11 debtor has the absolute right to reject an unexpired lease or executory contract (one where both parties have significant contractual obligations yet to perform). For example, a debtor can reject its office lease and move to smaller quarters at a reduced rent. This rule enabled Carnet Construction to get out of its onerous 10-year lease and move into smaller, less expensive office space. Avoidable Transfers. Certain pay-
602.631.2300 | 800.231.1363
ments to creditors and transfers of property before a bankruptcy filing can be avoided, and the money or property returned to the bankruptcy estate. With this power and CPA assistance, Carnet Construction successfully recovered the $150,000 payment to the IRS and the $80,000 payment made to one of its unsecured trade vendors.
confirmation. Carnet’s creditors ultimately voted in favor of the plan. Carnet also developed a greater appreciation for the services of his CPA. Art Carnet didn’t always take his CPA’s advice from then on, but at least now, he listened more carefully.
The Chapter 11 Plan
A CPA can play a vital role in a Chapter 11 reorganization, including the following: Standard Accounting. First and foremost, a CPA may be employed to perform the debtor’s standard and customary accounting, including preparation of financial statements and tax returns. Financial Analysis. The CPA’s role in providing financial analysis to the debtor is critical, particularly in determining the viability of a Chapter 11 bankruptcy and formulation of a plan. Bankruptcy Schedules. A CPA can provide guidance preparing the schedules of assets and liabilities the debtor is required to file at the outset of the bankruptcy case. Monthly Operating Reports. A CPA can assist in the preparation of the operating reports the debtor must file with the bankruptcy court each month that it remains in bankruptcy prior to plan confirmation. Preparation of Chapter 11 Plan. Chapter 11 plans usually involve financial analysis and accounting features. CPAs can provide critical support in this area. The ability to reorganize through a Chapter 11 bankruptcy is a powerful tool (and sometimes, the only viable one) to help financially struggling businesses and individuals avoid liquidation and get back on their feet. A Chapter 11 also offers numerous opportunities for CPAs. Those willing to invest their time in assisting a Chapter 11 debtor may find the process both personally AZ CPA and fiscally rewarding.
The ultimate goal for most Chapter 11 debtors is to obtain court approval (or confirmation) of a plan of reorganization. If the plan meets all requirements for confirmation and is confirmed by the bankruptcy court, it will effectively become a new contract. Some of the more powerful tools a debtor can use to reorganize its debts are: Payment of secured claims. A debtor need only make payments to a secured creditor in a principal amount equal to the value of the collateral. For example, assume the debtor owes $100,000 on a loan that is secured by equipment worth $35,000. The debtor need only make principal payments to this creditor of $35,000, with market interest. The remaining $65,000 balance of the loan is treated as an unsecured claim. Tax claims. Certain tax obligations can be paid in periodic installments over a five-year period. Tax claims must be paid with interest at the rate set by law. Payment of Unsecured Creditors. Most debtors usually pay very little to unsecured, pre-bankruptcy creditors. The only requirement is that unsecured creditors cannot be paid less than they would receive under a Chapter 7 liquidation. Carnet Construction proposed a plan to make monthly payments on the balance of the Globe Bank loan based upon a 10-year amortization schedule with interest at five percent, and a fiveyear maturity. It also proposed to pay its delinquent tax debt over five years with interest at the legal rate. Finally, it proposed to make three annual payments to unsecured creditors equal to its net operating income during the three years immediately following plan
The CPA Role In The Chapter 11
David Wm. Engelman and Bradley D. Pack are shareholders in the Phoenix law firm Engelman Berger PC. The can be reached at DWE@eblawyers.com or www. eblawyers.com.
Arizona’s Premier Provider of Workers Compensation Insurance CopperPoint Mutual is committed to providing workers compensation insurance expertise along with great customer service. Financially strong and service oriented, CopperPoint delivers Peace of Mind. Put CopperPoint to work for you.
copperpoint.com
MAY 2015 y AZ CPA
15
Committed to a
strong and healthy ArizonA For more than 75 years, we have been helping take care of Arizonans. We focus on the health of our members and the well-being of the communities in which they live. That’s why we’re proud to support Arizona Society of CPAs and the work they do to foster a strong and
113851-14
thriving business climate now and far into the future.
16 AZ CPA y MAY 2015
Career Success Begins with Your Actions by Todd McGee
Whether your professional journey has taken you to public, private or corporate accounting, the first few years of full-time work experience are crucial. Successful young accountants are those who take action and make the most out of these formative years. Though everyone’s path is unique, networking and seeking mentors and real-time feedback from your supervisors are fundamentally important to a rewarding accounting career. Following are several tips that can help you get started down the path to success. Networks and Mentors
Learning how to network takes time and practice, but once mastered it becomes an extremely valuable tool. Networking should not be limited to an exchange of business cards at a cocktail hour. Be deliberate, purposeful and genuine in your networking efforts. Do not be afraid to follow up: say hello with a quick refresher about the conversation you had during the initial meeting and offer regular updates. Some more diligent networkers create a spreadsheet that has contact information, a short comment about how they met, and some common themes in regular communications. You do not need to be this formal in maintaining your network, but use the method that best works for you as a tool to meet people, identify mentors and build a portfolio of lasting and meaningful business relationships and friendships. The ability to identify mentors will help shape your professional development. Mentors should be people you respect and want to emulate. Many companies pair experienced staff who want to serve as mentors or coaches with younger staff.
You may have expanded your network enough to identify a few individuals who you think can serve as mentors and role models outside the confines of your work environment. Younger CPAs may find it intimidating to ask questions, communicate career aspirations or ask for candid performance feedback from work superiors. Mentors serve as an intermediary sounding board and assist in generating ideas on how to have difficult conversations with your direct supervisors. It is especially helpful if a mentor has strong, diverse work experience about which he or she can share insight. Their experiences and skills can contribute to successful choices, or at least learning experiences, in your career. Real-Time Feedback
Improvement does not occur overnight. It requires time to develop skills, effort to continue to push yourself to work through difficult situations, and humility to take a step back for an accurate assessment of your performance. A key factor in this development process is the ability to have open and honest conversations with coworkers and superiors about your performance. Similar to a quarterback talking to his receivers throughout a game or a pitching coach making a visit to the mound, receiving real-time feedback in the office is invaluable. It enables you to become self-aware and make immediate changes rather than waiting for a year-end review. These feedback touch points not only benefit you as a person and make you a more valuable employee, but they also improve the firm’s performance. As difficult as it might seem, having conversations that are candid, up front, and focused on your performance will better enable you to make changes and adjustments in your daily work that will positively affect your career. Share Your Knowledge
Emerging CPAs learn a vast amount of information in a short period of time. From soft skills to technical skills and everything in between, it is important
MAY 2015 y AZ CPA
17
Financial Planning Conference June 10 Black Canyon Conference Center Receive a valuable mix of tax updates, planning tips and practical guidance from the experts. Given the present economic conditions, discover the pros, cons and risks to help your clients plan for the future. Topics include: • What to Expect from the Economy in 2015 • Variable/New Annuities • Self-Directed Retirement Accounts: Alternative Investing • How New Legislation Will Affect Arizona with Representative Justin Olson, Arizona House of Representatives
• • •
Turn Clients into Referral Sources Long-Term Care: The Next Financial Crisis for America Tune-Up on Tax Planning: What’s Changed? with Ed Zollars
Over lunch, you will watch the video of the TED talk “Your Body Language Shapes Who You Are” presented by Amy Cuddy, Harvard Business School, and discuss your takeaways at your table.
Not-for-Profit Conference June 24 Black Canyon Conference Center Customize your experience at the conference with a variety of breakout sessions using three tracks: audit, tax and soft skills, along with two general sessions. Hear from keynote speaker, James Lum, from GuidesStar. Topics Include: • Audit & Accounting Update • Insurance Update • NPO’s Newest Connecting Strategy: Social Media • Single Audit/SEFA • 990 Review and Update • Life Cycle of Fundraising
• • • • •
Board Governance Hard conversations to Have with Management Non-Cash Donations What’s New in the World of Exempt Organization Tax? How to Reach Your Audience
Round out your day with Nonprofit Ideas on Speed Dial, where each expert will provide five minutes of their best ideas.
Special thanks to our Platinum Sponsor:
to take on the role of mentor yourself as you develop your career and share the skills and knowledge you have obtained. As you grow, your responsibilities will increase and you will become busier and busier. However, it is important to remember how much time others spent to assist your own professional development. Consider becoming a mentor when a new staff member comes to your desk with that “deer-in-the-headlights” look asking for advice. Get Out and Practice
As you start to make decisions about the direction of your career and begin to solidify your specialty or niche, ask for guidance and feedback from mentors and colleagues, and challenge yourself to get better. As you progress in your professional capabilities, opportunities will become vast and advice will be critical. By learning to seek, accept and make changes from feedback, and seeking mentors that can challenge you to see opportunities for growth, you will be well on your way to a successful career with a strong network ready to support each step along the way. AZ CPA Todd McGee is a senior associate at PwC in Philadelphia, PA. He can be reached at todd.p.x.mcgee@us.pwc. com. Reprinted with permission from the Pennsylvania CPA Journal. Seri es ASC PA E-Z ine
r to Take Your CaxtreeLev el the Ne ation for CPAs Helpful inform from the ce their careers who want to advan of CPAs. Arizona Society
www.ascpa.com
•••
1
Want to Take Your Career to the Next Level? Learn more at www.ascpa.com, click on CPE then Conferences
Get the ASCPA e-zine, “Take Your Career to the Next Level,” filled with helpful information for CPAs who want to advance their careers. Available at:
www.ascpa.com/careers 18 AZ CPA y MAY 2015
AvalaraPrintAd-ASCPA-Stars.pdf
1
2/5/15
2:46 PM
Stop the suffering of MSTS.
Manual Sales Tax Syndrome is treatable. Talk to your accountant today.
Find out if Avalara AvaTax™ is right for you: www.avalara.com/ascpa
1-949-278-8652
WARNING:
Some side effects of AvaTax implementation are common and well documented. These include, but are not limited to: greater sense of ease and well-being , significantly reduced risk of penalties and interest in the event of an audit, greater focus on profit-making activities, more free time to enjoy the things you love — including family and friends. If you experience any of these very common side effects, contact your accountant immediately and inform them of your AvaTax discovery.
MAY 2015 y AZ CPA
19
Conversations with the Kachina ... Use Your ASCPA Membership to Save Time My client has a complex issue that I’m not sure how to handle.
You are not alone. Use the Connect site to ask your peers for advice on how to handle the situation or get guidance on where to find more information.
It’s busy season. I don’t have time to keep an eye out for legislative bills that could affect accounting.
Don’t worry, we have your back. The ASCPA monitors more than 300 bills each year that affect the accounting profession, and each year they educate legislators on the importance of tax conformity.
The ASCPA also attends all State Board of Accountancy meetings to make sure your voice is heard.
I need to know about online security now.
No need to wait three months for that seminar. Take CPE when you want it through the ASCPA’s new On-Demand recorded webinars.
20 AZ CPA y MAY 2015
Use Your ASCPA Membership to Save Money We have several options for free and discounted CPE. You can participate in 8 free webinars led by experts in a variety of fields. Don’t forget to sign up for CPE by May 31 to get a 15% discount. You can also team up with some co-workers and save 20% by watching a webcast together.
My company is no longer paying for my CPE, and my personal budget is pretty tight.
I need to attract new clients, but I don’t have a marketing budget.
We can help. As a member, you can join the referral service at no cost, and the ASCPA markets the service to the public. There are also opportunities for you to speak to the media to give you more exposure to potential clients.
I have a tough time negotiating lower prices on services, since I work in a small organization.
The large membership of the ASCPA has allowed us to negotiate special pricing programs for all of our members for payroll processing, cell phone providers, insurance programs, movie tickets and more.
MAY 2015 y AZ CPA
21
Classifieds Business Opportunities/ Practices for Sale CPA FIRM SEEKING TO BUY CLIENTS — Established over 30 years, we are experienced in smooth transitions and maintaining high client retention. We specialize in servicing small to medium businesses. If you are planning on retiring, we can customize a transition for you. If you want to downsize or change careers, we will buy part of, or your entire client base. We service the entire metropolitan Phoenix area and offer complete accounting and tax services. Call Joy today at (480) 990-2727 or email joy@awcpas.com. 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 30 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. PRACTICES WANTED - CASH BUYERS WAITING! — PROFESSIONAL ACCOUNTING SALES – Selling accounting practices for over 30 years. We maintain a database of over 40,000 CPA’s interested in purchasing a practice. The Phoenix and surrounding areas continue to bring top dollar, mostly cash sales. Please contact us first if you are contemplating retiring in the nearby future. We offer confidential and professional representation to the prospective seller, and provide financing assistance to our qualified buyers. You may reach us most anytime at (800) 729-9031 or visit our website at www.cpasales.com. We only get paid for producing results!
Employment Experienced CPAs – Join Our Rocky Mountain Tax Practice - Dalby, Wendland & Co., P.C. — A progressive and growing public accounting firm in western Colorado, has Tax Manager and Tax Supervisor
openings in our Glenwood Springs office. Candidates will be CPAs with 5 + years of public accounting experience, skills in income taxation, and a strong general accounting background. We provide competitive compensation, benefits, and ownership opportunities. If you like the idea of living in a mountain town atmosphere, you will like Glenwood Springs. We are ready to talk now, so don’t miss out on this opportunity! See www.dalbycpa.com/careers, or apply with your cover letter and resume at HR@ DalbyCPA.com. SENIOR TAX MANAGE — 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 Manager — Tiffany White CPA, PLC — East Valley CPA firm seeking a Tax Manager to consult with clients and review individual, partnership, trust and corporate tax returns. Other duties are involved as client needs dictate. Strong income tax, accounting, analytical and communication skills required. Minimum of eight years recent income tax experience with a CPA firm desired. A working knowledge of Lacerte, Drake, Quickbooks, and Excel are necessary. CPA license required and Master’s degree helpful. Salary commensurate with experience. Please phone (480) 294-8900.
Office Space
When it is time to transition out of your practice you want to do it right. Accounting Practice Sales is the largest facilitator in North America for selling accounting and tax practices. We provide a free estimate of your firm’s value, market extensively, assist in negotiations and find you the right situation. We understand your concerns and respect your confidentiality. Contact us today so your last decision will be your best.
Gary Hankins, CPA* Call Today: 817 738-3287
www.AccountingPracticeSales.com hankins@apsleader.com *Licensed in Texas
22 AZ CPA y MAY 2015
GREAT OFFICE SPACE for lease in Central Phoenix! Leasing 3,000 to 12,400 sq. ft. of office space in unique mid–century modern building in Central Phoenix corridor. Plenty of covered parking, cool lobby, conference room, generous hospitality room and flexible office spaces. Elevator, great looking security fence, excellent landscaping. Near exciting uptown amenities, restaurants, light rail, freeway access from 7th Ave. Minutes from Courthouse and Capitol Mall. Furnished or unfurnished. Meticulously kept, clean and fresh for your clients — Manager on site. Full, generous courtesy to brokers. Great rate. Three-minute video tour at https://vimeo.com/123772455. Eric.Sieb@ Sieb.com. Call (602) 576-7432.
For information on classifieds, go to www.ascpa.com and click on marketplace.
Today the CPA Exam. Tomorrow the world.
You’re taking the CPA Exam because you know what passing will mean not just to your career but your life. Becker Professional Education knows too. Everything we do is done to prepare you, to equip you, and to empower you – which is why Becker students pass at double the rate of non-Becker candidates.* So go with the leader. Go with Becker. Then go conquer that world out there – like you know you can.
Special pricing may be available for society members.** To learn more, visit becker.com or call 877.CPA.EXAM. *Becker Professional Education students pass at twice the rate of all CPA Exam candidates who did not take a review course from Becker, based on averages of AICPA-published pass rates. Data verified by an independent third-party research firm. **This offer valid only on complete, four part course tuition price and cannot be combined with any other offers.rved. ©2013 DeVry/Becker Educational Development Corp. All rights reserved.
In the Black ... Adventures in Accounting Happy New Year!
Another chance to work on my resolutions...
®
Concept: Heidi Frei; Illust.: Jack Gannon
2015 Resolutions 1. I will not eat cupcakes. 2. I will leave the office by 6:00 p.m.
And I get to take 15% off my CPE!
Celebrate the ASCPA’s new year with 15% off CPE when you register by May 31. MAY 2015 y AZ CPA
23
PRSRT STD U.S. Postage PAID Phoenix, Arizona Permit No. 952
Arizona Society of Certified Public Accountants 4801 E. Washington St., Suite 225-B Phoenix, AZ 85034
ADDRESS SERVICE REQUESTED
NUMBERS DON’T GROW A BUSINESS, BUT THE RIGHT PEOPLE DO. If you’re on the fast track for success, opportunity lives in choosing a firm that values talent and understands the desire to grow. Combining the strengths of two well-established, respected CPA firms in Phoenix, Miller, Allen & Co. and Abalos & Associates under the REDW brand, adds up to both opportunity and growth to energetic and experienced professionals.
Are you the right person? Current career opportunities available now at redw.com/careers
Albuquerque | Phoenix
24 AZ CPA y MAY 2015
602.730.3600 | redw.com