COCPA NewsAccount - November/December 2017

NewsAccount November/December 2017 Colorado Society of CPAs

From One Generation to the Next PAGE 2

Virtual Reality & Augmented Reality: A Glimpse of the Future PAGE 14

Contents Features

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It’s Time to Renew Your Colorado License You should have received an email from the Colorado State Board of Accountancy. The deadline is Nov. 30.

CPAs As… Mortgage Advisor

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When most people make partner at a Big Four public accounting firm, they tend to stay put for the rest of their career. But Wayne R. Tucker, Jr., CPA, decided to try something different.

What’s at Stake?

10 12

What started as an educational read of the U.S. government’s financial statements has become a mission to educate U.S. legislators about the nation’s financial situation. Greg Anton, CPA, CGMA, offers an update on What’s at Stake, the national initiative to educate legislators on America’s fiscal health.

How Long Can You Afford to Live?

What if someone is a statistical outlier and will live into his or her late 80s, 90s or even 100s? Many Americans just aren’t financially prepared for that.

Virtual Reality & Augmented Reality: A Glimpse of the Future

14 22 HOLIDAY HOURS The COCPA office will be closed: Nov. 23-24 Dec. 25 Jan. 1 For information 24/7/365, visit www.cocpa.org.

VR and AR technologies may sound far out, whacky, and completely inapplicable to the CPA world. Yet, companies around the world are using both for everything from customer services to marketing, finance, training, and production.

A.I. in Business The potential for A.I. goes far beyond cool. Its application in businesses and industries of all sorts will exponentially revolutionize how we both think and work.

Departments

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Chair Column Movers & Shakers Classified Ads

Chair Column

NewsAccount A bi monthly publication of the Colorado Society of Certified Public Accountants Vol. 63, No. 4 November/December 2017 Board of Directors Tawnya Y. Ramirez, Chair Victor A. Amaya, Vice Chair Benjamin T. Hrouda, Treasurer Mark T. Solomon, Immediate Past Chair Mary E. Medley, Secretary Directors Renny Fagan, Dana J. Miller, Gregory P. Osborn, Christopher J. Telli, Karen F. Turner, Randy L. Watkins Editorial Board Jack Allgood, Alan D. Bennett, Peggy Jennings, Georgia Z. Phillips, Lori Anne Reinwald, Laura J. Theiss, Barbara J. Tedesko, Steve Van Meter, Michael D. West, Charlie Wright Mary E. Medley, President/CEO Natalie G. Rooney, Contributing Writer Ariana Cassard, Blue Ocean Ideas, Design NewsAccount (ISSN #10899952) is published bimonthly by the Colorado Society of Certified Public Accountants, 7887 E. Belleview Ave., Suite 200, Englewood, CO 80111. NewsAccount is published in January, March, May, July, September, and November and reports information, news, and trends in the accounting profession. The Colorado Society of CPAs assumes no liability for readers’ business decisions in reference to advertisements or other information included in this publication.

From One Generation to the Next

BY TAWNYA RAMIREZ, CPA, CGMA

I

am a Xennial, part of the microgeneration between Gen Xers and Millennials, which means I can remember life before computers, the internet, and cell phones.

In fact, a poll published in my senior high school yearbook asked the junior class about the internet. At that time, only 25% used it at home, and 38% used it at school.

Compare that to data from the National Center for Education Statistics in 2013 when 71% of the U.S. population age three and over used the internet.

I don’t remember ever using the internet in high school. I do remember taking a typing class and using computers during a “computer lab.” But I had no knowledge of the internet much less use for it. Of course, that all changed when I went to college and entered the professional workforce.

My life experience is summed up nicely by the results of the “Are you a Xennial?” quiz I took on The Guardian’s website, bit.ly/cocpa-guardian-quiz: “You understand modern technology but are not so emotionally

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• NewsAccount • November/December 2017

needy as to require constant validation from strangers you will never meet.”

As I traveled around the state on my Chair tour this past summer, I talked to members about the risks currently facing the broader profession and their communities, businesses, and clients.

It was no surprise that the conversation occasionally turned to “those Millennials.”

I’m sure you’ve heard it: They don’t want to work; they think they are special; they need so much coddling. Because I’m the closest thing to a Millennial Chair the COCPA has had to date, I wanted to dedicate this Chair Column to how I responded.

First, I called it out, “You are doing what’s called Millennial bashing.” To me, calling it out is important because we’re not going to resolve this ongoing interpersonal struggle unless we name it. I did not coin the term, but I have repeated it frequently. I heard it for the first time from Tom Hood,

Thank you to the wise Baby Boomer in Grand Junction.

During my presentation, I called Millennials “kids” several times. He politely and respectfully told me it was not an effective strategy for getting through to Millennials.

This Xennial continues to learn, too.

CPA, CGMA, and CEO of the Maryland Association of CPAs, who is not a Millennial.

Then, as a Xennial who actually relates to both generations, I reminded the audience, mostly Gen Xers and Baby Boomers, that these are your children. They are clearly not mine, but I have spent a significant part of my career managing them (and some Gen Xers).

Many were told they are the most special and talented people in the world and that they could be anything they want to be without correlating that to work and effort. These messages were promoted when “protect and build your child’s self-esteem at all cost” parenting strategies were being heavily marketed. Remember, when the Gen Xers were coming of age in the 70s and early 80s, times were tough economically and socially. Gen Xers wanted to protect their children from the hard times and heartache they experienced.

I get it. I grew up in a rural area, in a family that lived below the poverty line for several years. I know firsthand that regardless of talent, and even sometimes effort, things won’t always work out well. But now that Gen Xers have to deal with other people’s children in the workforce, many of them are feeling the repercussions of these parenting strategies.

The first piece of advice I gave to managers and leaders in the audience was this: You have to be really upfront with Millennials (and all your employees for that matter). Tell them

everyone is uniquely talented in their own way and they are not more talented than their peers.

They are not entitled to a promotion until and unless it’s earned. Also, they may have to be patient and wait until an opportunity becomes available – just because they’re ready it doesn’t necessarily mean there’s a role.

Yes, I’ve done this with employees I’ve managed. The first thing they usually say is, “Thank you for being honest with me. You just told me something that I felt but that no one would say out loud.” For those of you who are saying to yourselves, “Easy for you to say. If I say that to them, they will leave,” yes, they may. But they will leave regardless of whether you say it or not. And if you say it out loud, upfront, you may actually build trust, which could lead to more loyalty in the long run.

Up to this point in every conversation, the Gen Xers were generally smiling, and the Millennials were sinking into their chairs a little. It was then I would shift my focus to the Gen Xers to whom I would say, “You have to face reality. There aren’t enough of you to backfill the Baby Boomers’ exit from the workforce.”

According to the U.S. Census Bureau in 2015, there were 66 million Gen Xers (ages 35 - 50), 75 million Millennials (ages 18 - 34), and 75 million Baby Boomers (ages 51 - 69). According to the projections from that same census, by 2050, there will be only 50 million Gen Xers, about 20 million Baby Boomers, and about 80 million Millennials. With numbers like these, Gen Xers need to stop Millennial bashing and start understanding what drives Millennials to leverage their talents. Millennials can be an asset in helping businesses cope – and maybe even stay ahead of the rapid and revolutionary technological changes we all face. They’re not afraid of technology, and they’re not weighed down by “the way we used to do it.”

My second piece of advice to managers and leaders of Millennials: Don’t tell them how and when to do something. Instead, tell them what needs to be done, why it is important, and when it is due. Set clear expectations for what is not an acceptable outcome and why. Millennials want to work and more importantly want to do great work; they just don’t necessarily want to do it the way you did it.

Finally, check in with them periodically. Give them specific feedback. “Good job,” “nice work,” or “that’s not right” isn’t effective feedback for anyone. Effective feedback is specific and actionable. For example, “I noticed that you got X result by doing Y. Thank you for your effort, creativity, entrepreneurship, etc. Please keep doing that.”

After many of my presentations, some Millennials told me, “I get your message, and I understand, but I want you to understand.

I don’t feel like anyone is listening to my experience, and I’m just expected to understand theirs. I came into the job market at a really tough time, and I don’t feel like I'm ever going to catch up." They affirmed that they want to work hard, but they want to work differently.

They felt there was no middle ground with their superiors – it was their way or the highway – and their way was unnecessarily hard and time consuming.

I understand that too. I personally hate being told, “Just do it because that’s the way we’ve always done it.” I’ve been fortunate, throughout my life and career, to be surrounded by people who acknowledged my perspective when I pushed back on the status quo. My advice to Millennials is simple: Don’t complain; bring solutions instead of problems; and be relentless. Make the business case. Explain how your solution will be better for the business first, not for you, because in the end, what is good for the business is good for you too.

Collectively, we can make the workplace, the profession, and our families and communities better than ever. As Stephen Covey puts it, “... seek first to understand, then to be understood.

Summarize[d] in one sentence, [this is] the single most important principle I have learned in the field of interpersonal relations. When we really, deeply understand each other, we open the door to creative solutions and third alternatives. Our differences are no longer stumbling blocks to communication and progress. Instead, they become the stepping stones to synergy.” s Email Tawnya at tramirez@chartergrowthfund.org.

November/December 2017 • www.cocpa.org •

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Regulatory Reminder

It’s Time to Renew Your Colorado License

B

y the time you read this, you should have received the following email from the Colorado State Board of Accountancy: Your Certified Public Accountant CPA. xxxxxxxx license is now due for renewal. In order to maintain its current status of Active/ Inactive/Retired, and to avoid a late fee, you must renew prior to 11/30/2017. Your renewal fee is $76.00 (or less, depending on your current status). If you do not renew your license prior to 11/30/2017, you will have a 60-day grace period before your license will be deemed expired. A $15 late fee will apply to all licenses renewed during the grace period.

To renew CPA.0000xxxx, please go to www. colorado.gov/dora/licensing/Login.aspx, or copy and paste it into your browser address bar and follow the prompts to access our Online Renewal Service: Your User ID is: xxxxxxxxxx If you have forgotten your password you may access our Online Services by using our Password Finder. NOTE: If you have never logged onto our Online Services or if you have not previously answered the identity confirmation security questions, you must first Register your account.

If you would like to review some general frequently asked questions, or would like further instructions, please visit our Online Services Help page.

New: Once you have successfully renewed your license, you will receive a confirmation email containing your wallet card within 1 business day, which you can print from home. You will not receive a wallet card in the mail.

If you have any questions about renewal or your license, please contact our Customer Service team at 303-894-7800 or dora_dpo_ licensing@state.co.us.

CHECK YOUR EXPIRATION DATE To avoid a late fee, all Colorado CPA

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certificate holders with an expiration date of Nov. 30, 2017, must renew by Nov. 30, 2017.

After Jan. 31, 2018, your certificate will expire, and you will be required to apply and be approved for reinstatement before you can practice. Should you indicate that you have been using the CPA designation or performing work that requires a license, you may be subject to disciplinary action.

Licenses issued on or after Aug. 3, 2017 (within 120 days of the renewal date of Nov. 30, 2017), should renew in 2019. Check your expiration date to be sure.

PEER REVIEW ATTESTATION If you are subject to the Peer Review requirement because you provide compilation, review, and/or audit services, you are required to attest that you have complied with those requirements when renewing your license in Active status.

You’re exempt from the requirements if you do not provide such services, work for a CPA firm already subject to the peer review requirements, or are renewing an Inactive or Retired status license.

Simply put, if you work for a firm that performs those services, choose Attestation #2a. If you work for a firm that does not perform those services, choose Attestation #2b.

STATUS CHANGES To change your status (Active, Inactive, Retired) to a different status, you should do so before renewing your license. To download the appropriate form and instructions, go to www.colorado.gov/pacific/dora/ Accountancy_CPA_Applications_Docs.

Note that changing your status during the renewal period will delay your license renewal. Once the status change has been processed, you must renew your license online in the new status no later than Jan. 31, 2018, to avoid license expiration.

• NewsAccount • November/December 2017

CPE ATTESTATION Remember, if renewing in Active status, you will attest that you HAVE or WILL HAVE completed the required CPE between Jan. 1, 2015, and Dec. 31, 2017.

That's 80 hours for the two-year period.

Four hours must be in Ethics, and no more than 16 hours can be in Personal Development.

To change from Active to Inactive status, download the “Change Status to Inactive” form from the Colorado State Board of Accountancy website, complete it, and mail it to the Colorado Division of Professions and Occupations, Office of Licensing, 1560 Broadway, Ste 1350, Denver, CO 80202.

No fee is required.

To reactivate from Inactive or Retired status, download the “Reactivate Inactive or Retired License” form from the website, and follow the completion and mailing instructions.

Note that this change requires payment of a fee. You also must submit documentation of the required CPE. To change to Retired status, download the “Change Status to Retired” form, and follow the instructions. This change requires payment of a fee and submission of documentation of completed CPE. You must have completed 10 hours of CPE for every quarter in the reporting period up to filing the change status request.

TRACKING APPLICATION STATUS Go to www.dora.colorado.gov/professions/ onlineservices to track your application from the date it is logged into the database to the date it has been approved. The Office of Licensing recommends allowing at least 10 business days from date of mailing before checking the status of your application. s Questions? Contact COCPA CPE Director Rebecca Campbell, CAE, rebecca@cocpa.org, 303-741-8618, or 800-523-9082, ext. 118, or CEO Mary E. Medley, mary@cocpa.org, 303-741-8601, or 800-523-9082, ext. 101.

COCPA Governance

Bylaws Amendment Proposed for Member Comment At its Sept. 28, 2017, meeting, the COCPA Board of Directors approved the following proposed bylaws amendment for publication to the membership. The proposed change would provide for flexibility in how and when membership dues are billed and collected. Deleted wording is shown as strikethrough, and additions are shown in capital letters, boldface. Comments should be emailed to Mary E. Medley, CEO, at mary@cocpa.org by Dec. 1, 2017.

COLORADO SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS BYLAWS PROPOSED AMENDMENT, SEPTEMBER 2017 ARTICLE II DUES SECTION 1.

The annual dues for each type of membership as defined in Article I shall be established annually by the Board of Directors. The Board may set varying rates dependent on certificate date, residency, occupation, or any combination of the foregoing.

SECTION 2.

Dues shall be payable in advance on May 1st of each year AS DETERMINED BY THE BOARD OF DIRECTORS. The member's status at that date shall determine the amount of dues payable for the ensuing year 12-MONTH PERIOD. SECTION 3.

Dues of individuals elected to membership after May 1st of any year shall be charged for the current fiscal year as follows: If application received during the quarter ended: July 31

100%

October 31

75%

January 31

50%

April 30

25%

SECTION 4 3.

No dues shall be assessed Honorary Members.

Any member who has been a member of the Society for 35 years and is fully retired shall be carried as a lLife mMember without further payment of dues.

The Secretary of the Society shall have the authority to waive dues in special cases.

November/December 2017 • www.cocpa.org •

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Member Profile

CPAs As… Mortgage Advisor

BY NATALIE ROONEY

W

hen most people make partner at a Big Four public accounting firm, they tend to stay put for the rest of their career. But Wayne R. Tucker, Jr., CPA, decided to try something different.

A Colorado native, Tucker graduated from Metropolitan State University, choosing accounting after a bookkeeping class spiked his interest. “I was searching for a major,” he reflects. “I knew I wanted it to be in business. I took that bookkeeping class, and it made sense.”

Tucker also says it didn’t take long to figure out what he didn’t want to do: auditing. He chose the tax route instead. “I preferred the tax side of business because it was less number intensive and more about legal interpretation and planning.”

Firms – the Big Eight at that time – came to Metro to recruit. Tucker interviewed with and was hired by Peat Marwick (now KPMG), going directly into the tax department. He progressed up the ranks to manager level but left after five years, joining the corporate tax department at M.D.C. Holdings, Inc. whose subsidiary companies include Richmond American Homes and other entities that provided financing, insurance, and title services.

After two years, he was lured back to KPMG as a senior manager and became a tax partner in 1997. He stayed for nearly another decade.

Then, he began thinking about a change.

TRANSITIONS “The time commitment of a partner can be difficult,” Tucker says. And the profession was in a state of flux. Arthur Andersen.

Enron. SOX. The dot-com bubble. “I had always been interested in having a business of my own at some point. Starting my own tax practice would have been a normal transition.”

There were also other factors at play. Tucker’s wife, Deborah, was in the midst of a career change herself. After nearly two decades

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mortgage industry couldn’t be any more complicated than the Internal Revenue Code,” he laughs. And the work ethic that had helped him make partner in public accounting served him well. “That doesn’t just go away,” Tucker says. “You’re building a business. You’re getting up to speed. You were a tax partner, and now you’re not going to make anything for a while. That’s pretty motivating!”

as a Denver police officer, she had earned her real estate license and was starting her own residential real estate company. By the mid-2000s, business was booming, and her company had up to 150 agents.

“I thought about what I could do. What did I know?” Tucker says. “I didn’t want to do something I didn’t know anything about.

That seemed like a prescription for failure.”

Ironically, what he knew was the financial side of real estate, thanks to countless hours of working with and advising his public accounting clients such as home builders, developers, leasing companies, mortgage companies, and finance companies, which were in real estate and non-banking financial services. “Over the years, I developed a good overview of those types of businesses,” Tucker says. “I knew from a tax and general business perspective how they operated.”

In 2006, he took the plunge and founded Spectra Mortgage Corporation. “I had done some research and knew the industry was relatively easy to get into at the time,” he says.

“Everyone thought I was crazy for leaving a Big Four partnership to start a mortgage brokerage, but I did it with the conviction that with my wife’s real estate company and my financial background, it would be a good fit.”

LEARNING ON THE JOB Tucker discovered that even with his knowledge base, the learning curve was steep.

He started with a partner, who had nearly a decade of mortgage business experience “I was a quick learner. I figured learning the

• NewsAccount • November/December 2017

In 2006, Colorado’s real estate and mortgage industries were booming.

In late 2007, it all came crashing down. “I had pretty bad timing, as it turned out,” Tucker says. His business partnership disbanded in 2007. He had to make a decision: return to public accounting or continue to do something on his own.

He decided to stick with it. The time period from 2008 to mid-2012 was “pretty rough.”

He scaled the office back to a two-person operation and hunkered down for the long haul. The market started to turn again in 2012, and Tucker says it has been “a pretty good last four or five years.”

The heavy regulations the mortgage industry now operates under remind Tucker of the accounting profession. “It went from really easy to get a loan in 2007 to extremely difficult and very technical in terms of guidelines,” he says.

“In the mid-2000s, the mortgage industry had a sales mentality more akin to the car industry than providing financial advice. You could get on the phone, call people, and get them to buy or refinance because it was easy. By the time we got to 2010 and 2011, the industry was highly regulated and highly technical. That was exactly what I knew as a CPA. When the industry got harder, it worked to my benefit.”

Others in the industry didn’t fare so well; close to 60 percent of those in the industry prior to the economic downturn left because of the complicated new rules and the tough business environment.

Tucker relies on his CPA background every day. He maintains his license and says it holds

weight with his mortgage clients. “People see it and know what it means. When I start working with clients, I approach a mortgage the way I’d approach someone in a financial planning or tax setting. I’m not trying to sell them. I’m trying to give them information and options about the rules and how things can be structured to fit the guidelines and meet their objectives. It’s what I did in tax.”

Tucker says it’s critical to be able to help people make decisions because most don’t understand mortgages. “Mortgages are mass marketed, and everyone pushes you to just get on the internet and apply for one. Why would you work with a stranger on the internet to complete the largest financial transaction you’ll ever make?”

The opportunity to help people make smart decisions is what drives Tucker. “Our business is built on referrals,” he says. “I’ve approached it as I would have if I had started a CPA firm – developing trust, giving people good advice, doing a good job, and being accessible. Then they tell other people. It’s as simple as that.”

FUTURE GROWTH Spectra Mortgage has grown to a fourperson operation, increasing its volume and profitability. Tucker says he’s committed to building the firm and expanding its volume.

Referrals come from every end of the financial spectrum, from people buying their first homes to those who are spending millions.

Regardless, “there’s still education in it for

Your Clients Have a trusted CPa.

everybody,” he says. “A lot of people think they’re experts because they’ve bought a house before, but they don’t always understand how the mortgage industry and interest rates work and how to compare what they’re seeing.”

Would he ever go back to tax? “I’d never say never,” he laughs. “But I’m enjoying this. It’s mine. I get to see the results of what we do pretty quickly, whether it’s good or bad. I get to help people. It’s interesting. It’s challenging.

But ultimately, it’s gratifying to help someone who has worked, saved, and made an effort to improve their credit to not only buy a house for their family but also make a good longterm financial decision.” s

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November/December 2017 • www.cocpa.org •

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Taxation

Tax Considerations in Mergers and Acquisitions

BY MATT BALDWIN, CPA

M

ergers and acquisitions (M&A) are

complex transactions that are ever changing and require skillful negotiation.

One of the key components buyers and sellers face in every M&A transaction is the related tax implications. Without proper consideration, there can be unintended consequences and unexpected costs. An M&A transaction can be fully taxable, partially taxable, or not taxable at all.

Depending upon the flexibility of the buyer and seller, the transaction often can be accomplished in a tax efficient manner that achieves the goals of both parties.

The structure of the transaction is the foundation for assessing the tax implications.

A stock/equity or asset transaction can create different tax implications. This article explores the differences and underscores the need for careful consideration when determining which route to take.

STOCK TRANSACTIONS A stock sale takes place between the buyer and the target company’s shareholders. It does not involve the sale of assets, and the target company remains in existence and intact after the transaction. As a result, the target company does not recognize any gain or loss from the sale of its stock/equity interests. Rather, the shareholders recognize gain or loss on the difference between the selling price and their basis in the stock/ equity interests which is generally long-term capital gain and taxed at favorable rates.

A stock transaction is often a highly desirable transaction for the selling shareholders, as it results in one layer of taxation (by the shareholders) and avoids double taxation that occurs with asset sales

by C-Corporations. A stock sale may be desirable to the buyer if there are significant tax attributes that the buyer can utilize or if the buyer desires to keep the legal entity in existence (for example, due to contractual obligations, union contracts, and the like).

8

Deterrents to a stock sale include a lack of step-up in the basis of the assets of the target company to fair market value in the hands of the buyer. Rather, the buyer acquires the target company with its historical tax basis of the assets. Also, a buyer of stock generally inherits the target company’s undisclosed liabilities and uncertain tax positions.

Typically, a buyer negotiates representations, warranties, indemnifications, and perhaps escrows, in the stock purchase agreement to protect itself against potential undisclosed tax and non-tax liabilities.

For target companies taxed as a partnership for tax purposes (including limited liability companies), the selling members need to consider if the company has any “hot assets” as defined under Internal Revenue Code (IRC) Section 751 that could be allocated to the selling members which would change the characterization from capital gain to ordinary income and taxed accordingly.

An important consideration of a stock transaction is whether an election should be made by the buyer and the seller to treat the transaction as an asset sale. This election can be made under IRC Sections 338, 336, and 754 depending upon the type of entity involved and if other criteria are met. A more detailed discussion is beyond the scope of this article.

ASSET TRANSACTIONS In an asset transaction, the buyer acquires the target company’s assets and liabilities.

The target company can remain in existence or liquidate, dissolve, or otherwise cease to exist after the transaction is completed.

The target company recognizes gain or loss on the difference between the sales price allocated to the assets (generally negotiated in the asset purchase agreement) and the tax basis of the assets.

An asset transaction is desirable to the buyer when there is potential of undisclosed tax or non-tax liabilities that the buyer does

• NewsAccount • November/December 2017

not want to assume. Furthermore, an asset transaction is generally beneficial to the buyer where the target company has a low tax basis in its assets and the buyer wants to achieve a step-up in the basis to fair market value (which increases the amount of future tax deductions).

Some common pitfalls of an asset transaction typically occur to the seller. Mainly, the seller can be subject to double taxation and depreciation recapture. Double taxation occurs in asset sales of C-Corporations because one level of tax is assessed to the target company on the gain from the sale of its assets, and another level of tax is assessed to the shareholders on the distribution of the net proceeds. Double taxation will also occur if an S-Corporation was previously a C-Corporation and had built-in gains at the time of conversion and the conversion occurred within five years of the transaction date. S-Corporations and partnerships are generally not subject to double taxation.

Depreciation recapture generally occurs where the target company is an S-Corporation or partnership. In short, gain from the sale of assets attributable to prior depreciation deductions must be recaptured and taxed as ordinary income.

Therefore, unforeseen tax consequences can result to a target company that is fixed asset intensive and has taken advantage of bonus depreciation or fixed asset expensing under IRC Sections 168 or 179.

TAX ATTRIBUTES Tax attributes are an important consideration for both the buyer and seller, as they can be a contributing factor in how the transaction is structured. A buyer needs to evaluate carefully situations in which the target company has tax attributes, such as net operating loss and/or tax credit carryforwards.

In a stock transaction, these attributes generally carry over to the buyer for potential utilization in future years. However, if the

2017 CPAS MAKE A DIFFERENCE

2017 Everyday Heroes

Your career should be a marathon, not a sprint.

Congratulations to the following COCPA members who will be honored for their contributions to their communities, Nov. 10, at the CPAs Make A Difference celebration.

We have you every step of the way.

303.830.1120 ∙ www.acmllp.com/careers Boulder ∙ Denver ∙ Northern Colorado ∙ Laramie

Sean McDonald, CPA Anton Collins Mitchell LLP, Denver

Brad McQueen, CPA EKS&H LLLP, Denver

stock acquisition results in a change of ownership greater than 50 percentage points during a three-year period, the tax attributes should be further evaluated to determine if there is any limitation to the buyer under IRC Sections 382 or 383 that could negatively impact the ability to utilize the attributes.

Tax attributes do not carry over to the buyer in an asset transaction.

A seller needs to evaluate carefully situations when it has significant tax attributes and an asset sale is pursued in order to limit the amount of tax attributes that expire after the transaction. The target company can utilize these tax attributes to offset against any gains recognized as a result of the transaction.

TAX PLANNING FOR MERGERS AND ACQUISITIONS The information above is a starting point when determining the tax implications of M&A transactions. There are a variety of other considerations including, but not limited to, rollover of seller’s equity, deductibility of transaction costs, and state and local tax issues. Planning and negotiation are critical components to the M&A process for any buyer or seller. Another important element in the process is buy-side or sell-side due diligence to help determine the need for representations, warranties, indemnification provisions, and whether escrows and holdbacks are necessary.

Proper representation by an experienced M&A tax professional throughout the negotiation process can ease the anxiety associated with M&A transactions. s Contact Matt Baldwin, CPA, Tax Manager with CliftonLarsonAllen LLP, at 303-793-1461 or matthew.baldwin@claconnect.com.

Buddy Newton, CPA, Stockman Kast Ryan & Co., Colorado Springs

Pete Aden, CPA Bauerle & Co., Denver

John Wetherington, CPA Rocky Mountain Human Services, Denver

LEAD SPONSOR

Dan Soukup, CPA Soukup Bush & Associates, Fort Collins

Jeffrey Mueller, CPA Mueller & Associates, Canon City

NEW CPAS SPONSOR

Federal Fiscal Affairs

What’s at Stake?

BY NATALIE ROONEY

What started as an educational read of the U.S. government’s financial statements has become a mission to educate U.S. legislators about the nation’s financial situation. COCPA member Greg Anton, CPA, CGMA, offers an update on What’s at Stake, the national initiative to educate legislators on America’s fiscal health.

I

n 2011, Greg Anton, CPA, CGMA, Chairman and CEO of Anton Collins Mitchell LLP, had an aha moment.

He was chairing an AICPA committee that was evaluating whether the AICPA would recognize the federal government’s accounting standards-setting body as a GAAP standards setter.

The committee ultimately provided a recommendation letter to then, Treasury Secretary Tim Geithner, and the project ended. But during the process, Anton had taken the time to read the U.S. government’s financial statements and the standards the U.S. government follows.

“I don’t think there are many people in the U.S. who can say they’ve read those financial statements in their entirety,” he notes. What he learned during his reading adventure was what’s in our government’s financial statements, what isn’t, and how different the financial reporting model the government follows is from that of commercial enterprises.

“That’s how this whole thing started,” Anton recalls.

HOW WHAT’S AT STAKE BEGAN Before the What’s at Stake project existed, Anton was, and continues to be, a member of Colorado Concern, a bipartisan, statewide, CEO-based organization devoted to investing in and promoting a pro-business environment through the political process. “It’s not a lobbying group, but business leaders do a lot of work with politicians to create pro-business legislation,” Anton explains. Examples include construction defects regulatory reform and transportation funding.

During the Great Recession, Anton and other Colorado Concern members met with Sen. Michael Bennet (D-Colo.) to

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became aware of Anton’s and the AICPA’s efforts. He presented to the Congressional CPA caucus. He presented to groups such as Rotary and state auditors across the country.

“I’ve probably given the presentation upwards of 100 times over the years, and we update it every year.”

discuss the financial implications of the Cash for Clunkers federal legislation.

Anton discussed his experience in reading the U.S. government’s financial statements, and Sen. Bennet’s staff asked him to review the statements with Bennet. “I met with him, walked him through the government’s financial statements, and explained how different they are from corporate statements,” says Anton. He later met with Sen. Mark Udall (D-Colo.) to do the same.

Those meetings led to the idea that the AICPA should create tools to educate politicians and other elected leaders about the U.S. government financial statements – what’s in them, how they’re different from the budget, and how they can be utilized to manage the finances of our country.

The AICPA’s media team road tripped to Denver and filmed the presentation Anton had given Sen. Bennet. “We put together talking points and created the first video in the What’s at Stake series,” Anton says. The materials enabled CPAs across the country to meet with elected leaders and citizens to spread the message.

From there, opportunities to educate legislators grew. Other members of Congress

• NewsAccount • November/December 2017

Anton says when he gives the presentation, groups are most surprised to find out the U.S. government’s largest asset. He encourages them to guess what it is. Land?

Mineral reserves? Not even close. Try the nation’s student loans receivables balance which is a whopping $1.3 trillion.

“It’s a significant question to ask yourself,” he says. “Is it appropriate that our largest asset comes from educating our citizens?”

The U.S.’s second largest asset is property and equipment at just under $1 trillion.

NEW YEAR, NEW VIDEO Each year, the AICPA and Anton produce a new What’s at Stake video on a different topic.

The goal is to educate AICPA members and U.S. citizens that the statements exist and how to use them.

In the fifth installment, produced in spring 2016, Anton reports on the federal budget deficit’s size and significance, putting a trillion dollars in context in view of social insurance obligations totaling $65 trillion that aren’t reflected on the federal government’s balance sheet. Person-onthe-street interviews capture individuals’ thoughts on the deficit and its impact on their lives. The video also calls attention to a bipartisan Congressional resolution highlighting the fiscal state of the nation.

Anton says feedback is always positive and often incredulous. “Everyone expects a presentation about the government’s

financial statements to be dry and boring,” he says. “I finish, and they say it was one of the most enlightening and informative presentations they’ve ever seen – and that they learned things they never know about the U.S. government and its finances. They want to know how they can do more and engage.”

Anton says the most frequent question people have after the presentation is: Will the debt burden be resolved before it becomes a crisis? “The response is that it’s going to take compromise from all parties to do what’s in the best interest for generations to come. “We haven’t seen that compromise yet, but it will come. When I meet with politicians, they all care about the country and its citizens, but they all have different philosophies on how to get there. Our common goal will eventually overcome the political discourse.”

Anton says he first got involved simply because he was asked. “Someone believed I had the ability to chair a committee that was very important,” he reflects. “I didn’t want to let anyone down. I wanted to do a good job and do the right thing when called upon to do something that needed to be done.” As he became more knowledgeable, he also became

more curious. “I wanted to be sure that those who aren’t as financially astute had some level of knowledge to use the financial information in making financial decisions on behalf of our country,” Anton says. “I needed to make sure every member of Congress knew these statements existed. In the beginning, they knew there was a budget but not financial statements. Now they know.”

THE EVEN BIGGER PICTURE Anton says his ultimate realization has been that the financial crisis, and the debt burden the country is now facing, is a result of not having the highest quality education. “Our education system is failing its citizens,” he says. “As a result, there are more people in need than there should be. The only way we’re truly going to solve the debt burden in our country and around the globe is to increase education and the ability of humans and citizens to become more valuable. The way you do that is through knowledge and education. And that’s a 20-year fix. My realization of that has become much bigger and deeper as I’ve evolved and learned.”

Anton says by reading the U.S. financial statements, he also discovered that the federal government doesn’t really evaluate how its programs are benefitting citizens. Some are

designed to provide a return on investment, such as the investment tax credit. Other programs, such as those designed to benefit people in poverty, aren’t evaluated. Are they really working? Is the mission of those programs creating the outputs needed? “We don’t evaluate them,” he says. “That needs to happen.”

The concepts behind what’s necessary to fix the debt may seem overwhelming, but Anton says it’s about taking it on in bitesized chunks. “There are things we can do to increase revenue without raising taxes,” he says. “Our corporate income tax isn’t competitive. Companies are paying their taxes elsewhere at lower rates. We need to bring our money back to the U.S. by modifying our environment.”

The What’s at Stake series is still going strong.

It is still being presented around the country, and new videos are planned for future years. “The U.S. government will produce a financial statement every year,” Anton says.

“We’ll report on it and continue to create awareness.”

You can view the full What’s at Stake series and find additional resources at aicpa.org/whatsatstake. s

Revenue Recognition and Accounting for Grants

BY STEVEN CORDER, CPA, CGMA AND LORI ANNE REINWALD, CPA

Y

ou may have thought the new revenue recognition standard did not apply to contributions. However, it could affect accounting for grants, especially federal grants and contracts.

Whether grants should be treated as contributions or exchange transactions is not always clear. This diversity in practice resulted in the Financial Accounting Standards Board (FASB) issuing on August 3, 2017 the Proposed Accounting Standards Update (ASU) Clarifying the Scope and Accounting Guidance for Contributions Received and Contributions Made. Additionally,

the FASB took on distinguishing when a grant is conditional or not. This proposed ASU eliminates the table of Indicators Useful in Distinguishing Contributions from Exchange Transactions that most notfor-profit accountants are familiar with and replaces it with a flowchart to help in distinguishing between an exchange transaction and a contribution and then whether the contribution is conditional.

The examples in the proposed ASU illustrate real-world transactions that many not-for-profits encounter. Not-for-profit accountants will likely be changing their

revenue recognition policies, and many grants that were previously treated as exchange transactions will likely become conditional contributions under this ASU. The ASU also will provide more consistency in revenue recognition among not-for-profits.

The comment period for the proposed ASU ended, Nov. 1, 2017. The effective date for this standard is expected to be the same as the effective date for the new revenue recognition standard. For most nonprofits, it is the annual reporting period beginning after Dec. 15, 2018. Stay tuned

November/December 2017 • www.cocpa.org •

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Retirement Planning

How Long Can You Afford to Live?

BY NATALIE ROONEY

A

ccording to the National Center for Health Statistics, the average lifespan for U.S. males currently is 76. The average lifespan for U.S. females is 81.

But what if someone is a statistical outlier and will live into his or her late 80s, 90s or even 100s? Many Americans just aren’t financially prepared for that.

Scott Ranby, CPA, CFP®, principal and financial advisor at Kuhn Advisors, Inc., says the investment environment has changed the rules of thumb for retirement planning. With fewer of today’s workers able to rely on a traditional pension, longer life expectancies, and the future of health care hovering like a gigantic question mark, Ranby says new strategies are necessary.

“Some of the assumptions we’ve grown up with in terms of retirement aren’t valid anymore,” he says. “We still have clients coming to see us who think they’ll be able to live off of the interest from their retirement portfolio. It’s a big myth we have to dispel.”

Ranby says another bubble he has to burst for clients is the idea that their spending will go down dramatically in retirement.

“Maybe it will go down a little, but we think it’s unlikely they’ll experience a significant decline in spending,” he says. “People today are active. They want to travel, and that costs money.”

And then there are health care costs which are growing much faster than the rate of inflation.

Ranby says he automatically runs everyone’s age out to 100 when forecasting the future value of their nest egg. “It just gives us more comfort that we’re not going to err on the side of recommending a premature retirement. We take a longer, more conservative view.”

Another concept Ranby says has been turned on its head is the idea that as retirement nears, a portfolio must dramatically shift to become more conservative, scaling back on

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stocks, and moving out of risky investments to conservative ones because the portfolio will be used for daily living expenses. “There are risks to every investment,” he says.

“Stocks have a visible risk. You can open up your account on any given day and see it drop. But putting your money in bonds or the bank has its risks as well by not growing and not keeping up with inflation. You need a portion of the portfolio still to be in growth mode.”

Traditional advice was to put a percentage amount equal to your age in bonds – the older you get, the more money you have in bonds. But Ranby says that’s not really rooted in scientific or academic research. “It’s just a rule of thumb we all got stuck with.”

When setting an appropriate asset allocation for a client, Kuhn Advisors uses the bucket approach, which divides a portfolio into two or three buckets. One bucket funds your lifestyle for the next three to five years. The stock market is volatile and unpredictable over a five-year span; no one knows where it’s headed. “As a retiree, you want to avoid selling at a low point to fund your lifestyle, so we take three to five years of known portfolio withdrawals and put the funds in a bond or CD so you know it’s there and safe, regardless of what the market does.”

The remainder should be in long-term growth investments. “As long as you don’t touch it and let your emotions rule, we think you’ll be rewarded with a higher return,” Ranby says. “The formula is based on what you think you’ll withdraw, not your age. It’s a fairly radical concept to think that someone who is 60 or 70 years old would still have 70 percent of his or her investments in stocks, but when you dive into the theory behind it, we can get people comfortable with it.”

And while fewer retirees will have those traditional pensions to rely upon, Ranby says that most of us will have Social Security in some form. “That’s guaranteed income.

It acts like a bond,” he says. “People don’t realize they have these ‘bonds’ from Social

• NewsAccount • November/December 2017

Security or pensions which can allow them to be more growth-oriented in other parts of the portfolio.”

SPEAKING OF SOCIAL SECURITY When it comes to Social Security, the key word is: delay. Ranby says many people still want to take it at age 62 when they’re eligible.

“Every year you wait, you can increase your benefit up to age 70,” he explains. “Waiting can make a big difference for those with a long life expectancy. If you start to take it early, you lower your payment for the rest of your life.” He recommends waiting at least to age 66 or 67. “Every month you delay past that, you’re getting something extra.”

While some individuals may be concerned that if they wait until age 70 they won’t live long enough to receive their full benefit, Ranby points out that you only have to live into your early 80s to make it a good decision. Take a glance at an actuarial table, and it will confirm there’s a good likelihood you’ll make it.

What should clients do during those years when that income is needed? It can be tricky to navigate. “Some people can do it; some can’t,” Ranby acknowledges. “There needs to be a lot of planning around Social Security, especially for couples.”

WHAT ABOUT THE FOUR PERCENT RULE? If the term “Four Percent Rule” rings a bell, it’s for good reason. It has been the longstanding concept used to determine the amount of funds to withdraw from a retirement account each year. The Four Percent Rule was designed to provide a steady stream of funds to the retiree, while also keeping an account balance that allows funds to be withdrawn for a number of years.

The four percent rate was always considered a "safe" rate, with the withdrawals consisting primarily of interest and dividends.

Ranby says the current combination of low interest rates and fairly priced stocks is pretty much turning the Four Percent Rule on its ear. As the table shows, the likelihood

of a portfolio lasting 30 years at various withdrawal rates declines precipitously when historical assumptions (savings accounts earn 5% and stocks return 10%) are replaced with current observations.

Ranby says investors can increase their odds of success by lowering their withdrawal rate and increasing their portfolio’s risk/reward profile. That increased risk is what tends to be radical and somewhat controversial, even amongst advisors.

“If people are willing to be more growth-oriented in their stock/bond mix, to save more, and to withdraw less, maybe they can rely on the Four Percent Rule,” Ranby says. “ We think it’s dangerous, though, to think of the stock market as a magic bullet that one can rely on to compensate for not saving enough or spending too much. It’s going to be difficult to replicate the types of returns we’ve seen over the last ten years in the next ten years.”

CPAs themselves are great savers, Ranby says. Now they need to turn on a mental switch and have a plan for spending as well. “We become so afraid to spend. You need tools and projections so you can plan to have that quality of life whether it’s giving to charities, visiting grandkids, or travel. Working with an advisor and having that knowledge of how to spend through your portfolio can improve your quality of life.”

PROBABILITY A 50% STOCK/50% BOND PORTFOLIO WILL LAST 30 YEARS Withdrawal Rate 4%

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Source: Sustainable Retirement Spending with Low Interest Rates: Updating the Trinity Study.” Wade D. Pfau, Ph.D., CFA. Journal of Financial Planning, August 2015, 38-40 When it comes to the future, health care is the biggest unknown. “We try to help people have some sort of recognition that you can plan for some things – paying off your mortgage or traveling a certain number of times a year,” Ranby says. “But things like the stock market and your health are outside of your control. You just have to do the best you can.”

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Ranby says it’s only recently that the retirement models are starting to be questioned. “It takes a long time for information and research to trickle into mainstream thinking. We’re just seeing it start to happen.”s

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Technology and the Profession

Virtual Reality & Augmented Reality: A Glimpse of the Future

BY NATALIE ROONEY

V

irtual reality (VR) and augmented reality (AR) technologies may sound far out, whacky, and completely inapplicable to the CPA world. Yet, companies around the world are using both VR and AR for everything from customer services to marketing, finance, training, and production. The accounting profession isn’t being left behind.

WHAT’S THE DIFFERENCE? Many consider VR and AR to be the most disruptive technologies since the smart phone.

VR is a three-dimensional, computer generated environment which can be explored and interacted with by a person.

That person becomes part of a virtual world or is immersed within an environment and can manipulate objects or perform a series of actions. A range of systems are used, such as headsets, omni-directional treadmills, and special gloves. These are used to stimulate our senses together in order to create the illusion of reality.

AR describes applications that are designed to enhance the real world with virtual information, enabling the user to interact with it in real time. It provides visually presented, context-dependent information that can support almost every aspect of everyday life.

AR has become synonymous with smartglasses such as Google Glass or Microsoft’s HoloLens, but smartphones, tablets, and smartwatches are all devices that can include the software. There are also non-wearable technologies like VNTANA that project 3D virtual images into the real world so multiple people can see and interact versus being restricted to a headset or handheld device.

While VR lets you create an imaginary world and is primarily about entertainment, AR supports people in their everyday activities by extending their perception and

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facilitating communication. It allows people to access live information, without obscured vision, and without looking away from what is happening in front of them.

Why are companies investing hundreds of millions into AR technologies? Because the technology can be deployed at every stage of the value chain, and it opens up huge potential for efficiency improvements, particularly in production and servicing. It also doesn’t hurt that PwC LLP predicts AR will be an $80 billion industry by 2025.

VR/AR AND THE ACCOUNTING PROFESSION Michael Grant, Director, Learning Design & Development for the AICPA, oversees a team of 50 in the AICPA’s Member Learning & Competency Division. “We design a variety of learning solutions whether instructor led, group study, onsite workshops, conferences, online, and on-demand certificate programs,” Grant says. “We’re leveraging technology to enhance our members’ and students’ learning experiences. We have to stay on the cutting edge, stay current on trends, global learning, and development.”

That means the team is working to make strides in VR and AR delivery.

“This is such a unique time in the world of breakthroughs in disruptive technology,” Grant adds. “There are a lot of implications for these technologies in corporate learning.”

For example, Walmart is using VR to allow employees to experience real-world scenarios through the use of an Oculus headset to prepare them for situations like dealing with holiday rush crowds or cleaning up a mess in an aisle. The headsets are linked to a video screen that shows a classroom what the trainee is seeing, so that the instructor and students can weigh in on the performance.

“It allows managers to see how employees will perform in a serious, relevant situation

• NewsAccount • November/December 2017

– using a fun, cool, cutting edge tool,” Grant says.

Not every area of the accounting profession would lend itself to VR and AR, Grant says, but the technologies are certainly applicable, including forensic accounting and corporate fraud investigations or when forensic CPAs are working with law enforcement.

“Cybersecurity, blockchain – a lot of these new areas lend themselves to these disruptive technologies,” he says.

Grant emphasizes that the AICPA’s goal is not to leverage VR merely as a gimmick but to selectively choose topical areas that lend themselves well within this opportunity to enhance learning experiences at conferences, workshops, and on-site schools (e.g.

SOC School, COSO on-site, Forensic Accounting, or Cybersecurity conferences).

To that end, the Institute is offering opportunities at its conferences and workshops for members to experience the technology for themselves. For an example of how data could be experienced rather than read about on a static page, a CPA could don a VR headset and walk into a virtual forensic crime scene. The participant would see, obtain, and identify data and evidence. Captions would appear indicating why certain items would be inadmissible.

“People can experience why they should have been more critical as an auditor in matters of professional skepticism because they can now see a warehouse or data center for themselves,” Grant says. “Everything can come to light visually.”

By enabling learners to directly interact with their learning materials, VR makes courses relevant, immersive, and entertaining – increasing engagement and motivation to learn. This modality also appeals to different types of learners and transcends standard eLearning.

Participants can see how they'll react in different contextual situations and identify

By enabling learners to directly interact with their learning materials, virtual reality makes courses relevant, immersive, and entertaining, thereby increasing engagement and motivation to learn. This modality also appeals to different types of learners in a way that transcends standard eLearning. performance gaps. In essence, they have the opportunity to explore a dynamic learning environment designed to help them prepare for various on-the-job situations before they encounter them in the workplace. The focus is on positive behavior change and overall performance improvement.

AR IN ACTION Unlike VR, AR does not replace the real world around you entirely but augments and enriches it instead, adding layers of information on top of the things that surround you.

Mobile apps on smart phones or tablets are one type of AR interaction. Users click open the app, and it “unlocks” programmed graphics that can be placed in publications, on-site participant manuals, self-study text, self-study online, or on flyers at a conference.

Imagine how your learning experience would be changed by interactive 3D objects

(such as the COSO cube pictured here) that launch on a device, allowing you to rotate around the object, click on areas to learn more, or watch a video of a practitioner explaining a complex case study.

access to data, Crowder provides an example: “Imagine you’re waiting for your Uber driver. A green arrow could appear over your head for your Uber driver to see instead of having to scan a crowd to find you.”

Recently, Ashley Crowder, Co-Founder/ CEO of VNTANA Interactive Hologram Technologies, gave AICPA Council a demonstration of how AR works, explaining that her company created a patented technology that isn’t wearable – everyone can see interactive holograms without having to wear a headset or hold up a phone.

VNTANA wants to create authentic group experiences. If an executive can’t attend a conference, she could still be live on stage via her hologram, answering questions, just as if she were physically present. “It enhances a presentation,” Crowder says.

“Instead of a PowerPoint presentation, a hologram can appear next to you and explain a point. Augmented reality will drastically change every industry from business to entertainment to gaming to the military.”

“Augmented reality is the opposite of virtual reality,” she explains. “We’re putting digital images into the real world.”

Crowder predicts AR will be a much larger market than VR. “Augmented reality is so powerful because it connects the digital world to the real world.” With seamless

While VR is about immersing yourself in a technology – visit a volcano on Hawaii, stand under the St. Louis arch, walk through a building that hasn’t been built – AR is about telepresence and data CONTINUED ON PAGE 16

November/December 2017 • www.cocpa.org •

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Technology and the Profession VIRTUAL REALITY AND AUGMENTED REALITY CONTINUED FROM PAGE 15

Augmented reality interactions are launched using a free downloadable app on a smart phone or tablet. Users click open the app, and it “unlocks” programmed graphics that can be placed in our publications, on-site participant manuals, self study text, self study online, or on flyers at a conference. visualization. “We can show a hologram of a shoe or a building or any other product in 3D even before it is made. We can show a tableau and make it better and more visual.

We can show 3D hologram versions of graphs and how the money flows.”

You could even join your grandma for dinner, although you’re in Colorado and she’s in Florida.

While Crowder says AR price points are still high for the general consumer market, corporations are using it as a way to invest in employees or perform demonstrations at trade shows. Advertising in general makes up the bulk of current AR use, especially sports sponsorships. At the U.S. Open, 8,000 fans threw a tennis ball to Roger Federer at the Mercedes-Benz booth powered by VNTANA. He returned the volley.

16

While consumers are engaging with the technology, VNTANA can collect all sorts of data through its patented software. If there’s a video for users to share on social media, the company can track where, how, with whom the video was shared, and who watched it. Facial recognition reveals age and gender, which helps generate product preferences. “After someone designs a car, I can tell whether the consumer is happier looking at a blue versus a red Lexus,” Crowder adds. “That data is so important and has more than doubled companies’ leads. This technology has real value in the advertising space. It’s fun, and people enjoy doing it. They enjoy the novelty of being a hologram, but there’s real, meaningful data on the back end.”

Crowder says that data gathering piece is the biggest value VNTANA is offering clients, and it’s the only company currently doing it.

• NewsAccount • November/December 2017

This data collection is impacting every industry, which means it’s affecting CPAs, Crowder says. “AR can be used for inventory management systems that measure WIP and financials,” she says, adding that companies are starting to implement augmented reality technology in their warehouses so they can physically see what stage a product is in and easily visualize the next steps in the process.

“Think about the automation that can be used in tracking parts in manufacturing.”

Grant says companies globally are embracing VR/AR technology, and he encourages CPAs to do the same. “Be open-minded. Embrace the possibilities and capabilities that leveraging cutting edge technology can offer,” he says. “We’re watching to see how other firms are using it creatively for sales and retail. Why not accounting?” s

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Financial Planning

Floss, Exercise and Stay Invested: Breaking Good Habits Can Derail Your Financial Plan

BY SCOTT RANBY, CPA, CFP®

W

hile most of us understand the benefits of various habits (exercising regularly or sticking with our long-term financial plan), we also know that just because a behavior is good for us doesn’t mean we’ll stick with it.

in again, this time with bonds and dividend stocks. These are two highly priced sectors that offer the illusion of stability and income.

Peter worries that with markets near record

Take Peter, a recent retiree and avid golfer.

He’s worked hard to accumulate his nest egg and expects it to provide income throughout his golden years, while also leaving a modest sum to his children and grandchildren.

In early 2016, after days of hearing the talking heads on the cable news channel panic that the market was down 10%, Peter called his advisor and demanded that his entire investment portfolio be sold and put in cash.

With his nest egg now “safe,” Peter proceeded to miss the market’s subsequent 16% gain from its lows in mid-February through August. Peter’s advisor regretted blindly following his request to bail out of the market and pressures Peter to get back

highs, investing now is not a good idea. In short, Peter seems to have mastered the art of selling low and buying high, a common sideeffect of failing to adhere to a disciplined financial strategy.

This anecdote begs the question of whose interests Peter’s advisor is serving. While the advisor is providing excellent customer service by following Peter’s wishes, these desires aren’t aligned with the best interests of his financial goals, namely staying invested through the market cycle. Over the 37-year period from 1980-2016, stocks posted positive calendar year returns 75% of the time.

With the market again at record highs and interest rates potentially climbing in the years ahead, investors are rightfully wondering how to position their portfolios for the next investment cycle. While no one has a crystal ball, history suggests that staying committed to your long-term investment plan usually wins out over emotionally charged decisionmaking. s Scott Ranby, CPA, is a Certified Financial Planner® professional at Kuhn Advisors, Denver. Contact him at scott@kuhnadvisors. com. Kuhn Advisors, Inc. is a registered investment advisor.

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• NewsAccount • November/December 2017

Colorado Business CONTINUED FROM PAGE 15

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Investment advisory services offered through M.J. Smith & Associates. M.J. Smith & Associates is not a registered broker/dealer and is independent of Raymond James Financial Services.

1 The Forbes ranking of America’s Top Wealth Advisors, developed by SHOOK Research, is based on an algorithm of qualitative and quantitative data, rating thousands of wealth advisors with a minimum of seven years of experience.

Ranking algorithm is based on quality of practice, including: telephone and in-person interviews, client retention, industry experience, review of compliance records, firm nominations; and quantitative criteria, including: assets under management and revenue generated for their firms. Investment performance is not a criteria because client objectives and risk tolerances vary, and advisors rarely have audited performance reports. Rankings are based on the opinions of SHOOK Research, LLC which does not receive compensation from the advisors or their firms in exchange for placement on the ranking. Research Summary (as of July 2016): 11,235 Advisor nominations were received, based on thresholds. 4,000 Advisors were invited to complete the online survey. 2,500 Advisors were interviewed by telephone. 425 Advisors were interviewed in-person at the Advisors’ location. Final list of the top 200 Advisors was then compiled based upon the quantitative criteria. Raymond James is not affiliated with Forbes or Shook Research, LLC. This ranking is not indicative of advisor’s future performance, is not an endorsement, and may not be representative of individual clients’ experience. Neither Raymond James nor any of its Financial Advisors or RIA firms pay a fee in exchange for this award/rating. * www.kitces.com/blog/independent-financial-advisor-fees-comparison-typical-aum-wealth-management-fee

Raymond James Financial Services, Inc. and its advisors do not provide advice on tax or legal issues.

5613 DTC Parkway, Suite 650, Greenwood Village, CO 80111 | 303.768.0007 | www.mj-smith.com

Educational Foundation of COCPA

Support the Profession’s Future on Colorado Gives Day

BY NATALIE ROONEY

Colorado Gives Day, Dec. 5 this year, is an important fundraiser for many Colorado nonprofit organizations, and it’s the single biggest fundraising opportunity of the year for the COCPA’s very own Educational Foundation. It’s a great way to support the future of the profession.

C

olorado Gives Day encourages charitable giving by providing comprehensive, objective, up-to-date information about Colorado nonprofit organizations and an easy way to support them online. Community First Foundation started the program in 2010, and COCPA member Peggy Jennings, CPA, Eide Bailly, LLP, is the Foundation’s chair emeritus.

"Community First Foundation developed the powerful online giving platform that makes Colorado Gives Day possible,” Peggy Jennings says. “We invest considerable efforts and dollars, making sure the platform is the best it can be and provides the necessary security.”

Though Jennings herself didn’t connect the COCPA and Colorado Gives Day, she loves that the Educational Foundation is a beneficiary. “The Society saw the opportunity and came to Community First Foundation, which was very insightful,” she says. “It’s been exciting to see it all come together. What a great opportunity it’s been for the Educational Foundation!”

THE IMPACT The first year the Educational Foundation was listed with Colorado Gives Day, the effort brought in $3,000 – not as much as the annual silent auction but enough for Carol Cameron, CPA, CGMA, (the Foundation’s former executive director) to believe the concept had traction. The CPA community clearly wanted to support the Foundation, so the question became how to best leverage the opportunity.

Carol Cameron) – have committed to the Educational Foundation. A $25 donation becomes a $125 donation. A $100 donation becomes a $500 donation and so on – you can do the math.

What happens to all that money? This year, the Educational Foundation awarded 45 $2500 scholarships to Colorado accounting students – $112,500 to help students with their educational expenses. One student put it quite eloquently in his thank you note:

Enter Mark Smith, CPA, CFP, PFS, CIMA, one of the Educational Foundation’s most avid supporters.

He offered to match the first $5,000 raised on Colorado Gives Day if two other donors would do the same. His challenge attracted four donors who offered to do the same. That second year, the Educational Foundation raised $40,000, and Cameron knew Colorado Gives Day was a perfect fit.

In addition to direct donations, organizations receive a proportion of an incentive fund. That amount can range anywhere from a few hundred to a few thousand additional dollars.

This year, four matching donors – RubinBrown Charitable Foundation, Mark J. Smith Family Foundation, Kundinger, Corder & Engle, P.C., and the COCPA (in honor of former CFO

CONTRIBUTE IN HONOR OF...

On Sept. 29, 2017, Carol Cameron, CPA, CGMA, COCPA CFO and Executive Director of the Educational Foundation of the COCPA, retired after 25 years of service. In lieu of a retirement celebration (which Carol asked not to have), you are invited to contribute to the Educational Foundation of the COCPA in Carol’s honor. You may do so online on Colorado Gives Day at coloradogives.org/cogivesday or by mailing a check to the COCPA office, c/o Mary E. Medley.

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• NewsAccount • November/December 2017

SCHEDULE YOUR DONATION You can donate on Dec. 5, or you can schedule your donation now, to be processed on Dec. 5. Either way, you’ll be making a difference that truly matters. Go to the Educational Foundation of the COCPA’s Colorado Gives Day page to view past scholarship recipients telling their stories, and learn more at coloradogives.org/ EFColoradoSocietyCPAs/overview. s

HIS

future is

YOUR future.

Every dollar you give will be matched 4x thanks to: • RubinBrown Charitable Foundation • Mark J. Smith Family Foundation • Kundinger Corder & Engle • Colorado Society of CPAs

Your $50 becomes $250.

Your $150 becomes $750.

Leverage the match and support the CPA profession by donating to the Educational Foundation. Your gift provides much needed scholarship support to deserving accounting students at Colorado colleges and universities.

Learn more and donate: give.cocpa.org

Change Management

A.I. in Business

BY DANIEL BURRUS, CEO OF BURRUS RESEARCH

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or many of us, our experience with artificial intelligence (A.I.) may be, for a lack of a better way to put it, “helpfully cool.” That can mean asking Amazon’s Alexa to play a particular song or querying Google’s Home to see if butter is a suitable replacement for vegetable shortening.

But the potential for A.I. goes far beyond cool.

Its application in businesses and industries of all sorts will exponentially revolutionize how we both think and work.

That sort of change is coming faster than you might expect. And organizations that anticipate the most effective ways to leverage A.I. will profit handsomely.

A HARD TREND THAT’S GAINING SPEED I first identified artificial intelligence in 1983 as one of 20 core technologies that would become powerful drivers of exponential economic value creation. Looked at in

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the context of my overall Anticipatory Organization Model, A.I. is an ideal example of a Hard Trend – a future certainty – which in this case means our overall increasing use of this technology in a broad array of applications. Further, this Hard Trend is not just a future fact; it’s one that’s accelerating in power and application at a predictable, exponential speed.

Three Digital Accelerators, specifically, the exponential growth of computing power, bandwidth, and digital storage. Since all three of those accelerators had reached a “tipping point” of sufficient growth and development, Google’s A.I. software was able to learn by playing millions of games of Go against itself to hone its tactics through trial and error. That helped ensure a victory that few expected.

While many of us are familiar with A.I. thanks to consumer-oriented devices such as Siri, Alexa, and Home, the fast-developing potential of A.I. was highlighted in May of this year when a Google supercomputer defeated a grandmaster in a game of Go, often considered the most complicated and involved board game ever invented. The computer bested its human counterpart using its advanced A.I. software.

THE POWER TO DISRUPT The issue of disruption is another central element that pertains to the potential of artificial intelligence. As I repeatedly stress in my books, presentations, and consulting work, many different kinds of products and services haven’t merely changed their markets or industries, they’ve thoroughly disrupted them, completely shattering the status quo. Further, there are only two sides to this particular fence – either you’re the one causing the disruption or you’re the one forced to react as best you can to this powerful disruptive force.

That remarkable victory also underscored another component of my Anticipatory Organization Model – the role of the

• NewsAccount • November/December 2017

That’s the kind of disruptive opportunity that artificial intelligence affords organizations of all sorts.

Here’s an illustrative example with which you’re likely familiar – IBM’s Watson, a cognitive computer that learns over time.

Cognitive computing, another form of A.I., is being increasingly used in a wide variety of applications including healthcare, travel, and even weather forecasting, to name just a few.

With regard to weather forecasting, after IBM acquired the Weather Company to boost its cloud capabilities (no pun intended), cognitive computing such as that employed by Watson allowed the Weather Company to manage more than 26 million inquiries every day on its website and mobile app. And, in handling that enormous level of information and data, it learned from daily weather changes as well as from the questions being asked.

Consider the disruptive impact that sort of technology can have. Estimates hold that weather is responsible for $500 billion in losses across any number of industries.

Think about how Watson could help farmers who not only rely on favorable weather conditions to plant and harvest their crops but also depend on worldwide weather conditions and forecasts that can help them strategically plan as well as inhibit or even prevent shipping to markets. Nor is the effect limited to those out growing crops in the fields. Pharmaceutical companies are increasingly relying on accurate forecasts to predict increased demand for allergy, cold, and flu medications.

REAL-TIME ANALYTICS AND MORE The potential of artificial intelligence also relates to its capacity for real-time analytics from the ever-increasing amount of Big Data and the ability to accumulate vast amounts of data and information as they occur and interpret them with the goal of producing knowledge that is both meaningful and actionable. Even better, by employing algorithms that iteratively learn from data, this sort of “machine learning” allows computers to identify significant insights without being specifically programmed to look for them.

Given that potential, it’s no surprise that numerous organizations and industries are racing to embrace A.I. I’ve been helping companies and governments both understand and identify new opportunities for applying A.I. For example, a few years ago, I was the keynote speaker at KPMG’s annual partner meeting. In my speech, I suggested that if a company like KPMG had IBM’s Watson learn the tax laws and regulations for all countries, that company would have a major competitive advantage. KPMG leaders took action and partnered with IBM to use Watson, and that partnership will greatly enhance KPMG’s ability to analyze and quickly act on critical financial and operational data, not to mention identify potentially lucrative new business offerings and services.

Public safety is one. Artificial intelligence is poised to help anticipate and address such critical issues as cybersecurity, civil unrest, and even outright acts of terrorism. It’s already been successfully used for these and many other areas. For example, officials at the 2016 Olympics in Rio de Janeiro were successful in maintaining security in a wide array of venues and locations using technology such as automated smart detection.

KPMG is anything but a voice in the wilderness. Other clients of mine including Deloitte, Ernst & Young, and PricewaterhouseCoopers are earmarking hundreds of millions of dollars for using advanced A.I. and high-speed data analytics to bring new insights and value to their audit, tax, and advisory services.

Here’s just a sampling of some other industries positioned to leverage A.I.:

One important question is, “If you are a smaller firm in this space, does that mean you are left out?” The answer is not at all! It’s not the tool; it’s how you use it that counts. The use of any tool, whether it’s A.I. or anything else, is only limited by your imagination and foresight.

OTHER AREAS POISED FOR A.I. OPPORTUNITY AND DISRUPTION The financial services industry provides just one example of organizations employing artificial intelligence to both improve existing services as well as develop groundbreaking new products. In fact, optimism about the potential of A.I. is pervasive. A recent survey of 2,500 U.S. consumers and business decision makers identified widespread confidence in the role of A.I. in the future. In fact, more than 72 percent of survey participants labeled A.I. as a decided “business advantage.” If they understood the concepts I teach of Hard and Soft Trends, that percentage would be 100%.

That begs the question: Where else will artificial intelligence effectively transform entire industries?

In the United States, a number of cities are using artificial intelligence for public safety and security. As a Stanford University study projects, by 2030 most metropolitan areas throughout the country will rely on artificial intelligence not only in combating crime but also in “predictive policing” applications.

Healthcare.

Major medical and pharmaceutical companies already are using artificial intelligence in a broad array of applications. One example is A.I. health assistants being used to streamline clinical processes. Rather than doctors earmarking time for rudimentary tasks such as getting information from a patient and checking vital signs, medical assistants augmented with A.I. instructions, insights, and actions can cover a large part of those sorts of clinical and outpatient services, freeing up doctors’ and nurses’ time to attend to more serious cases and patients.

A.I. is also gaining traction in disease diagnostics. Watson was first applied to oncology and now knows more than any one doctor. Does that mean we don’t need human oncologists? No! We need human oncologists who have access to Watson. In addition, leveraging real-time analytics, A.I. algorithms can quickly evaluate millions of samples and identify meaningful patterns. Moreover, like any doctor at the top of his or her game, A.I. never stops learning as it’s working.

Transportation. Almost everyone is aware of the growing use of artificial intelligence in autonomous and semi-autonomous cars.

That’s not just a matter of hopping in and CONTINUED ON PAGE 25

November/December 2017 • www.cocpa.org •

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Change Management A.I. IN BUSINESS

CONTINUED FROM PAGE 23

enjoying the ride but also involves the vehicle’s capacity to gather detailed driving information about routes and destinations to anticipate and pre-solve problems, as well as the driver’s current and future needs and interests. That same technology can be applied to public transportation, delivery drivers and other uses. The overall result will be a decreased number of accidents, less traffic congestion, and significantly lower energy costs.

Education. Artificial intelligence is fast taking hold in a broad array of uses in education.

For example, there’s “smart content” creation, including chatbot guides of textbooks and customizable learning interfaces. These are starting to show up from elementary schools to corporate environments. Add to that intelligent tutoring systems. For instance, Carnegie Learning’s “Mika” software employs cognitive science and A.I. technologies to provide personalized tutoring and realtime feedback for post-secondary education students. That’s especially beneficial for incoming college freshman who would otherwise need remedial courses.

Manufacturing. Manufacturing companies have been using robots to assemble products and package them for shipment for a long time now. Automation and robotics are now moving into other, more complicated manufacturing areas, such as electronics, cars, and even home construction with intelligent e-assistants.

Customer Service. With a focus on personalization and human interaction, artificial intelligence is increasingly becoming a major player in customer service. One such example is DigitalGenius, which helps companies automate basic text questionand-answer chats with customers. Even more fascinating, that system and others are also using natural language processing and machine learning to create reactive robots that mimic human speech patterns, and soon emotion, with facial expressions. When there is a task that needs a human helper, the e-assistant routes the customer to a human with the correct expertise to help. Service is both quick and comfortable for consumers and much less expensive for companies.

Law. A.I.’s impact isn’t limited just to fields with an overriding focus on technology.

With regard to the law, artificial intelligence is poised to streamline and improve efficiency in legal work. Additionally, with regard to litigation, natural language processing (or text analytics) can summarize thousands of pages of legal documents within seconds, as opposed to several days for a human employee – not to mention reducing the probability of error. Further, as A.I. technology such as Watson can learn from all of those legal books, lawyers, their clients, and the entire legal community stand to benefit greatly.

Artificial intelligence’s potential across any number of industries is further supported by the financial activities of a number of major players. In addition to Google and IBM, Facebook, Samsung, Apple, and Salesforce are all jockeying to acquire private A.I. companies. Overall, more than 140 private companies working to advance artificial intelligence technologies have been acquired since 2011.

They all see the game-changing opportunities afforded by A.I. So consider: How might

you and your organization benefit from the potential – both realized and anticipated – that artificial intelligence affords? As I mentioned earlier in the context of disruption, you can be the disruptor or you can choose to stay on the sidelines and react after you are disrupted – quite possibly at your own peril. s Daniel Burrus is considered one of the World's Leading Technology Futurists on Global Trends and Innovation and is the founder and CEO of Burrus Research, a research and consulting firm that monitors global advancements in technology-driven trends to help clients understand how technological, social, and business forces are converging to create enormous untapped opportunities. He is the author of seven books including New York Times and Wall Street Journal best seller Flash Foresight and the newest, The Anticipatory Organization: Turn Disruption and Change Into Opportunity and Advantage.

Burrus also is the creator of The Anticipatory Organization™ Learning System – named a Top 10 Product of 2016. Contact Rebecca Campbell, rebecca@cocpa.org, for information on that program.

November/December 2017 • www.cocpa.org •

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6 Tactics That Make for Happy Employees

BY SABINE VOLLMER

This article first appeared in CGMA Magazine. For more articles, sign up for the daily email update from CGMA Magazine at http://bit.ly/2svn2AY.

A

ccountants and finance professionals could be more productive if they were happier at work, research by staffing firm Robert Half suggests.

Happy employees are better employees because they are more engaged and more satisfied, they change jobs less often, and their mental health outside of work is better, according to Marsha Huber, CPA, CGMA, a happiness researcher and associate professor of accounting at Youngstown State University in Ohio. Huber, who was not involved in the Robert Half research, suggests that these benefits can translate into saved recruiting and training costs and even fewer sick days and lower medical costs.

Surveys by Robert Half found that two-thirds of employees in North America, Europe, and Australia are generally happy in their jobs, but accountants and finance professionals rank in the bottom half of the happiness scale among eight different professions.

Accountants came in fifth, and finance professionals were dead last in being happy at work, a survey of more than 12,000 working professionals in North America found. They were also the least interested in their work.

“In general, to help any employee become happier on the job is to help him or her find meaning in the work,” Huber said. “We need to help some accountants progress in their careers. Other accountants may need to feel they are doing something meaningful. For example, an accountant who works for a nonprofit may earn less than peer accountants but loves her work because she finds it rewarding.”

HOW TO WORK HAPPY Happiness at work is shorthand for employees being satisfied because they have a great experience on the job, Robert Half suggests. Needs, goals, and preferences that change from employee to employee make

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this experience a highly individual one, but Robert Half concluded that the following six factors are key drivers of job satisfaction: Hire to fit. Set expectations by crafting detailed job postings that clearly communicate to prospective hires what the job entails.

When you select job applicants who seem suitable, conduct in-depth interviews and thoroughly check references to avoid skills alignment issues. Also, devote attention to interpersonal abilities during the interview process to avoid hiring someone who’s brilliant but is going to irritate other workers.

Finance professionals that Robert Half polled in the U.S. and Canada said they did not feel well matched to their work. They said they aren’t able to use their strengths on the job to a high degree.

Reward smart risks. Empower employees to make decisions on their own, or with minimal direction, to let them develop problem-solving skills they can use to advance their careers, build confidence, and feel comfortable suggesting new ideas. Invite your entire workforce to brainstorm new ideas and approaches.

When somebody tries something that doesn’t work, capture the lessons learned through the failure and celebrate the smart risk taken.

About one-quarter of the professionals Robert Half polled in the U.S. and Canada said they wield little or no control over their work (23%) and feel they have few opportunities to be creative (26%).

Make employees feel appreciated. Offer gratitude for a job well done. Be specific when you recognize an employee and deliver the praise in a timely manner. Provide frequent feedback not only to individuals or the less experienced workers but also to the entire team.

• NewsAccount • November/December 2017

Respondents in the Robert Half North America survey who were 55 or older were less likely to receive constructive feedback (44%) than those under 34 (54%).

Offer work that’s interesting and meaningful. Let employees know through multiple channels that their contributions matter and that they are part of something larger than themselves. One way to do this is to allow employees to volunteer and establish ties with the community. Research suggests employees who feel their work is worthwhile are nearly 2.5 times more likely to be happy than those who feel the job they do is “just work.”

Workers at very large companies (2,500 or more employees) feel the lowest sense of accomplishment, according to Robert Half research.

Play fair. That means managers must ensure every team member knows what it takes to get promoted or earn higher pay and workers must have a chance to say when they feel a sense of inequality. To ensure employees feel their pay is equitable to that of others doing the same work, employers must periodically benchmark salaries. Knowing the going rate is vital to recruiting and retaining top talent.

Only 70% of women feel they are treated fairly compared to 74% of men. Likewise, 52% of women say they are paid fairly versus 58% of men, according to Robert Half research.

Help employees establish supportive workplace relationships. Managers can promote a positive workplace culture by creating opportunities for employees to forge and strengthen bonds with colleagues. For example, enlist more experienced workers to support their less experienced coworkers. s

L E A D F I T C E L E B R AT E S 6 T H Y E A R LeadFit is designed for CPAs and CPA-track accountants looking to grow professionally and personally. Participating this year are: Scott Brown, Christina Cullers, Hilary Farrington, Grace Kucza, Sarah Flischel, Nicole Goergen, Kyle Green, Lucas Hale, Janeen Hathcock, Lindsay Miller, Tawnya Ramirez, Patti Walsh, and Lori Walters.

For information on how you or a colleague can apply for the 2018 class, contact Terry Cervi at terry@cocpa.org.

Member Perspective

TO MY 22-YEAR-OLD SELF DIANE WIGHTMAN, CPA

Advice from a Female Baby Boomer who started her career in public accounting. (Do you remember the expression “the Big Eight”?) Helped break the glass ceiling. Has had her own successful consulting practice for over twenty five years. Serves on the AICPA Financial Literacy Commission and Finance Committee of The Women’s Foundation of Colorado and chairs the COCPA Financial Literacy Committee. Grandmother of five. Competitive snowboarder – and CPA.

Boulder/Longmont Tax Study Group at the Meadows Branch Public Library Tuesday, November 28 and Tuesday, December 19 This informal roundtable discussion group meets at the Meadows Branch Public Library, 4800 Baseline Rd, Boulder, BYO Bag Lunch. 2017 Meeting Dates: Nov. 28, and Dec. 19. For additional information, contact Lynn M. Mitton, CPA, MT, MPA, (303) 4997445 or email lynn@flewellingcpa.com. Register at www.cocpa.org.

Here’s what I know…

Denver Tax Study Group

There is no such thing as work life balance. There is, however, work life integration. We live in a 24/7 environment which affords us the flexibility and responsibility to ensure we manage people’s expectations, family as well as clients, and that we deliver.

at the COCPA Office

If you have the opportunity to work in public accounting for three to five years, do it! You’ll be amazed at how much you learn and the discipline you develop, both of which will propel you through your career.

Volunteer. Either in a professional organization or in an area of personal interest. You will meet amazing people and develop new skills. An added bonus is the wonderful feeling you get from helping out.

Take risks and scare yourself silly, often!

You can have it all if you stay true to yourself!

NewsAccount is seeking your advice — from your vantage point today — about what you would have appreciated knowing as you entered the CPA profession. Send your wisdom to Mary E. Medley, mary@cocpa.org.

In Memoriam We extend our sympathy to the families and friends of the following COCPA members: Debra J. Adams Member since 1992, Fort Morgan, Colo.

Jo Ann Adamson Member since 1983, Loveland, Colo.

Chauncey M. Beagle Member since 1958, Boulder, Colo.

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Tax Study Groups

• NewsAccount • November/December 2017

Tuesday, December 5 This informal roundtable discussion group meets over lunch, the last Tuesday of most months, at the COCPA office, 7887 E. Belleview Avenue, Ste. 200, Englewood. 2017 Meeting Date: Dec. 5. Register at www.cocpa.org.

North Metro Tax Study Group at The Ranch Country Club Thursday, November 16 and Thursday, December 21 Our featured lunch guest, Nov. 16, is Dave Romero, CPA, CFE, and formerly a Group Manager in the Criminal Investigation Division of the Internal Revenue Service. Dave has an extensive criminal tax and fraud background and works closely with attorneys and CPA firms.

He helps clients with fraud investigations, expert witness in criminal tax cases, discovering hidden assets, money laundering, and other professional services. This is a rare opportunity to hear an outstanding resource in the areas of criminal tax law, fraud, and preparer issues.

Our featured lunch guest, Dec. 21, is Steve Donelson, JD, LLM, MBA, and a partner with the national law firm, Ballard Spahr. Steve has an extensive tax and financial background and works closely with CPAs and their clients bringing solutions and advice on tax and estate planning, particularly in the areas of business succession and wealth transfer. He works in banking, health care, biotech, pharmaceutical, transportation, manufacturing, real estate, financial, and professional service industries.

This informal roundtable discussion group meets over lunch ($20/ person), the third Thursday of most months, at The Ranch Country Club, 11887 Tejon St., Westminster. 2017 Meeting Dates: Nov. 16, and Dec. 21. Register at www.cocpa.org.

Classifieds PRACTICES FOR SALE, PURCHASE, OR MERGER

OFFICE SPACE AVAILABLE

Local CPA Firm established 35 years ago, seeking to Sell or Merge.

High quality practice gross revenue 375K+. Structure Audit 25%, Tax 40%, Consulting 10%, Write Up 25%. Specializes in working with small business in Denver area market. Please respond to: denvercpafirm@gmail.com.

Office sharing opportunity in 3 sole practitioner CPA Colorado Springs office suite (1 or 2 available). Share conference, kitchen, internet, and telephone. Convenient North Academy and I-25 location with ample free parking. Tax season only or longer lease available. Call for details, Mark or Karen, 719-884-2000, or email karen@findleycpa.com.

Looking to retire/transition? DTC full service accounting and advisory firm is looking to acquire a practice with revenues up to $500,000. We specialize in working with small business in the Colorado market; attest, tax, consulting, write up, payroll, and general business matters across multiple industries. No brokers. Please email your inquiries to: carley@cocpa.org (Box #100932).

CPA Firms or Partners. We represent a number of quality CPA firms and individuals who are looking to merge, acquire, or sell their practices to other CPA firms or partners with business. Locations are in the Metro Denver, Boulder, and Evergreen areas. This is an opportunity to ensure your future as well as help your clients by expanding your services to them. Why settle when you can select?

Established in 1939. For further information, please contact Phil Rubeck at D&R Associates of Colorado: 720-446-7020, or email dandrassociatesofco@aol.com.

SITUATIONS WANTED Interim Controller/CFO/Accounting Manager. I am a very experienced financial professional with a background in the manufacturing, distribution, and construction industries. I am seeking short-term or long-term opportunities in the Denver area. My skillset includes ERP implementations, budgeting, and forecasting.

Mitch, 303-807-6663.

Established SE CPA Firm has 1 window office ($375 a month) & 1 inside office ($350 a month) for rent. Newly renovated building, parking available for small fee. Easy access to numerous restaurants, parks, etc. Located North of I-25 & Colorado Blvd., Denver. Contact Denise at 303-692-9326 x10 if interested.

Office space for rent! Small father/son Company looking to rent out single office (12’ x 11’) off I-25 and Dry Creek. Modern office includes access to conference room, utilities, janitorial, and security w/ 24 hr access via your own code. $400/mo, contact Joe or Garry Kuka at 303-840-1047 and come check it out!

Single tenant space available including four private offices plus break area, shared conference rooms and shared network. Located in the heart of the Denver Tech Center. 748 square feet of private office space with additional common areas. Professional atmosphere shared with engineering and design firm. Additional info including floor plan available upon request. Available immediately. Contact Beverly Wassmund at 303-928-1392.

Movers & Shakers Shawn Tebben joined the University of Northern Colorado Monfort College of Business as the Allen McConnell Endowment Chair. The position is named after UNC’s longtime accounting professor who began teaching there in 1968.

Andy Baum, CPA, ABV, CFF, Harper Hofer and Associates, LLC, Denver, completed the 2017 AICPA Leadership Academy program.

Elliott Ludy, CPA, A. Scott Colby, PC, Steamboat Springs, joined the Yampatika Board of Directors. The organization connects people to nature and inspires environmental stewardship through education.

Dalby, Wendland & Co. was named by INSIDE Public Accounting as a Top 300 Firm.

30 years 30 years experience experience in public in public accounting accounting 25 years 25 years of30 service of service with with Lang Lang & in Company, & Company, CPAs CPAs years experience public accounting 6 years 6 years experience experience as a with business as a Lang business broker broker CPAs 25 years of service & Company, 6 years experience as a business broker Please Please call for callyour for your free free consultation consultation 303-726-7646 Please call 303-726-7646 for your free consultation www.thomaslangcpabroker.com www.thomaslangcpabroker.com 303-726-7646 tom@thomaslangcpabroker.com tom@thomaslangcpabroker.com www.thomaslangcpabroker.com Colorado Estate License andLicense CPA License Colorado Real Real Estate License and CPA tom@thomaslangcpabroker.com Member ofReal the Estate Colorado Society ofCPA CPAs Member of the Colorado Society ofand CPAs Colorado License License Member of Colorado Association ofSociety Business Member of Colorado Association of Business Brokers Member of the Colorado of Brokers CPAs Member of Colorado Association of Business Brokers

November/December 2017 • www.cocpa.org •

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Colorado Society of Certified Public Accountants 7887 E. Belleview Ave., Suite 200 Englewood, CO 80111-6076

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