COCPA NewsAccount – July/August 2019

NEWSACCOUNT COLORADO SOCIETY OF CPAs • JULY/AUGUST 2019

Here Comes the Future PAGE 8

Going to Extremes PAGE 14

Embracing the Power of Blockchain Technology PAGE 24

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NewsAccount | July/August 2019

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Contents

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Features 8

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Here Comes the Future: Shocks, Nuggets, and Hands of Cards On June 13, COCPA members, staff, and guests gathered at the 2019 Leadership Summit. Consider how some of the highlights from that day might shape your future.

Lawmaking 2019: Winners and Losers in the Colorado General Assembly During the 120-day Colorado legislative session, 654 bills, resolutions, and memoranda were introduced. Twenty plus specifically addressed state and local taxes. Check out what made the cut and what didn’t.

Going to Extremes: Tackling the Grand Traverse and Other Life Challenges Alan Bennett credits growing up in Boone, North Carolina, for his life of adventure in Colorado and beyond.

Financially Fit Aging: Combatting Elder Fraud With the changing demographics of America, elder fraud is becoming the crime of the century and is expected to worsen. This third article of the series provides tips and resources to combat the problem head on.

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How an Inventor is Changing the Ways CPAs Do Business Biomimicry and conversational artificial intelligence are Sherry Comes’s specialties. She leverages both and digital innovation to transform what CPAs do. Michele Hansen sees the opportunities through the auditor’s lens.

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Embracing the Power of Blockchain Technology Our love of cold hard cash could be the next 20th century casualty to fall by the wayside thanks to blockchain technology.

18 Departments 2

Chair Column

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Movers & Shakers / In Memoriam

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July/August 2019 | www.cocpa.org

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CHAIR COLUMN

NEWSACCOUNT

A bimonthly publication of the Colorado Society of Certified Public Accountants Vol. 65, No. 2 July/August 2019

Becoming Future Ready

Officers

Benjamin T. Hrouda, Chair Sharon S. Lassar, Vice Chair Christopher J. Telli, Treasurer Victor A. Amaya, Immediate Past Chair Mary E. Medley, Secretary

Directors

Kristine M. Brands, Toby Clary, Audra Dixon, Renny Fagan, Georgia Z. Phillips, Matthew O. Rolland

Editorial Board

Jack Allgood, Alan D. Bennett, Steve Corder, 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.

Membership dues include a $9.00 one-year subscription to NewsAccount.

Periodical postage paid in Englewood, CO, and additional mailing offices.

POSTMASTER: Send address changes to NewsAccount, Colorado Society of Certified Public Accountants 7887 E. Belleview Ave., Suite 200 Englewood, CO 80111 Net press run = 6,743 copies; sales through dealers and carriers, street vendors, and counter sales = 0; paid or requested mail subscription = 6,688; free distribution by mail = 0; free distribution outside the mail = 20; total free distribution = 35; total distribution = 6,708; office use, leftovers, spoiled = 35; returns from news agents = 0; total sum = 6,743; percent paid and/or requested circulation = 99%.

303-773-2877 • 800-523-9082 Fax: 303-773-6344

S

ummer in COCPA Land means the annual Chair Tour, visiting COCPA members across Colorado. I’m looking forward to meeting as many of you as possible, hearing what’s happening in your part of the state, and sharing the exciting things happening for our profession on the state and national levels.

Two of the most important initiatives the AICPA and state CPA societies are exploring are the concepts of CPA Evolution and the Future Ready CPA. Both have been discussed at length during the past two AICPA Council meetings.

According to the World Economic Forum Future of Jobs, the top 10 declining roles by 2022 are: 1. Data entry clerks 2. Accounting, bookkeeping, and payroll clerks 3. Administrative and executive secretaries 4. Assembly and factory workers 5. Client information and customer service workers 6. Business services and administration managers 7. Accountants and auditors 8. Material-recording and stock-keeping clerks 9. General and operations managers

NewsAccount is available online at www.cocpa.org.

10. Postal service clerks

Some additional food for thought: • There are 56 million freelancers in the U.S. right now.

• Client advisory services such as bookkeeping, payroll, and outsourced CFO/controller positions are growing two times faster than other services within CPA firms right now.

The numbers speak to the change in CPA firms’ business practices from what they’ve been traditionally – tax and audit – versus what is needed to move forward and meet clients’ needs.

This information isn’t intended to scare you, but it is a wake-up call, putting some hard data behind why and how quickly CPAs and the CPA profession need to evolve.

Preparing for the future of the profession will look different for each of us. From Denver to Durango to Pueblo, smaller towns to larger cities, we individually may be taking different steps. But

We must address the changes that will impact how we serve our clients and our companies. as technology changes how CPA-type services are provided, we must address the changes that will impact how we serve our clients and our companies.

This year’s COCPA Leadership Summit focused on the Future Ready CPA. We heard from Futurist Thomas Frey, Google’s toprated futurist speaker and IBM’s most award-winning engineer.

Frey has built an enormous following around the world based on his ability to develop accurate visions of the future and describe the opportunities ahead. For some of the nuggets he shared on June 13, go to page 8.

The AICPA Future Ready CPA initiative is developing resources to help such as specialized CPE programs and the new Dynamic Audit Solution effort (an innovative process for auditing using technology). Your COCPA is partnering with the Maryland Association of CPAs to offer targeted continuing education, as well.

Watch for details on all these fronts.

All signs point to how vital it will be to reimagine and re-brand the CPA and self-disrupt the profession. How do we do that?

By being early. To quote past AICPA chair Eric Hansen, CPA, “If you’re on time, you’re late.” So, let’s be early.

Change can be overwhelming, but you have the COCPA as your partner for the future. We’re here to help you deliver on your vision.

Email Ben Hrouda at ben.hrouda@flywheelcap.com.

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For 25 years, we’ve been working with people like you to address the challenges of the transition from accumulating their nest egg to using it to support their retirement lifestyle. Get in touch today to schedule a complimentary consultation.

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July/August 2019 | www.cocpa.org

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TAXATION

State Tax Changes Effective in 2019

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uring the 2017 and 2018 legislative sessions, the Colorado General Assembly passed, and Governor John Hickenlooper signed, the following bills which go into effect in 2019. HB stands for House Bill, and SB stands for Senate Bill. To read the entire bill, search online for “Colorado House Bill XX-XXXX” or “Colorado Senate Bill XX-XXX.” You also can search on the Colorado General Assembly website, leg.colorado.gov.

HB18-1208, Expand Child Care Expenses Income Tax Credit, created a 50% of federal child care expense credit for all taxpayers with $60k AGI or less instead of the tiered credit.

HB17-1356, Colorado Economic Development Commission May Make OEDIT Tax Credits Transferable, enables the Commission to allow certain businesses that make a strategic capital investment in the state, subject to a maximum amount and to the requirements of the specified income tax credits, to treat as either carry-forwardable for a five year period or as transferable: the Colorado job growth incentive tax credit; enterprise zone income tax credit for investment in certain property; income tax credit for new enterprise zone business employees; and enterprise zone income tax credit for expenditures for research and experimental activities.

Effective beginning for tax year 2019, this is expected to require significant modifications

HB18-1217, Income Tax Credit for Employer 529 Contributions, created a credit for employers who contribute to employee 529 savings accounts.

to the DR 1366, the Enterprise Zone Credit and Carryforward Schedule.

SB17-267, Sustain Rural Colorado, Section 25 sunset the existing business personal property tax credit in tax year 2018. Section 26 simplifies and expands the business personal property tax credit for income tax year 2019 and forward. Also, the bill extended the new credit for tax year 2019 permanently.

HB18-1060, Income Tax Deduction for Military Retirement Benefits, created a deduction for military retirement benefits for taxpayers under age 55. The maximum amount that can be deducted phases in over several years. The deduction sunsets after tax year 2023.

HB18-1267, Credit for Retrofitting Residence, created a credit for retrofitting a home for aging in place or disability, certified by the Division of Housing. Additional clarifications were made by HB19-1135.

SB18-141, Income Tax Check-off Nonprofit Donation Fund, created a new checkoff on the Colorado individual income tax return that allows the taxpayer to select from among any of the charities registered with the Colorado Secretary of State to receive the taxpayer’s refund.

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REGULATORY REVIEW

State Auditor’s Office Gets Rolling on Tax Expenditures Project

BY NATALIE ROONEY

Senate Bill 16-203, enacted in May 2016, directed the Colorado Office of the State Auditor (OSA) to review all tax expenditures, a project that got underway during the summer of 2017.

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he bill created a rolling five-year process to review each expenditure, assess its effectiveness, and determine whether or not its original purpose is being met. “It’s a perpetual process,” says Michelle Colin, senior legislative audit manager, who emphasizes the project is not considered an audit. “We aren’t following Yellow Book standards although we do apply some of the same principles.”

Regardless of whether an expenditure is an exemption, deduction, credit, or rate difference, it reduces revenue to the state of Colorado. Projects similar to this are happening across the country as states examine how expenditures impact their revenue, says Trey Standley, legislative audit manager.

The OSA project is receiving national attention; its 2018 Tax Expenditures Compilation Report is a National State Auditors Association 2019 Excellence in Accountability Award winner in the Special Projects category.

As of mid-April, 2019, 226 provisions were up for review, according to Standley. “The statute directs us to review the oldest provisions first. Some have been in place since 1883.”

The team has been grouping provisions by similar topics to gain efficiencies.

Because the legislation also directed a review of any provisions scheduled to expire or be repealed, OSA has been completing reports and posting them to the OSA website prior to the legislative session during which the General Assembly would be required to take action to prevent repeal or expiration.

OSA conducts evaluations to determine if each tax expenditure is meeting its purpose.

“A lot of our work has been figuring out a provision’s original purpose,” Colin says.

“In some cases, the purpose is written into the statute, such as to incentivize business activity. In other cases, it’s not clear, or no purpose is stated at all.” When that happens, the OSA team turns to legislative history, the general principles of tax policy, and what other states do to infer a likely purpose.

COST VERSUS BENEFIT Part of the review process includes examining the costs and benefits of the tax expenditures and the revenue impact to the state.

OSA is reaching out to stakeholders, such as trade groups, to better understand how provisions are used and their importance. “If a provision is about incentivizing something, we talk to stakeholders about their decision process and how important it is to doing the business it’s supposed to be incentivizing,” Colin says.

from the exemption when they purchase wine, but it depends on the wine’s distribution system,” Standley says. “Some organizations get their wine at liquor stores now, and distributors who sell the wine to stores and who are responsible for paying the tax don’t have a way to determine whether it will be used for a religious purpose, so the distributors don’t even apply for the exemption.

Things change over time and work differently than they did when something was put in place.”

“We’re providing legislators and the public with information about how much it’s costing the state and what revenue they’re forgoing.”

Some of the provisions are outdated but have existed for so long because no one was assigned to oversee them over time.

There are cases, such as enterprise zone credits which are overseen by the Office of Economic Development and International Trade, where expenditures are monitored.

But in most cases, there’s no associated state program or agency providing oversight and follow up. “That’s a key part of what we’re doing,” Colin says. “By examining how many people use an expenditure, we’re providing legislators and the public with information about how much it’s costing the state and what revenue they’re forgoing.”

They’re discovering some expenditures just don’t apply anymore. Standley describes a crop hail damage premium deduction that no one uses because insurance no longer works the way it did when the expenditure was created. “People still care about crop hail damage, but that particular exemption doesn’t do anything anymore,” he says.

Another long-standing provision applying to sacramental wine was written in 1935. “Many religious organizations still get the benefit

CPA INPUT NEEDED State Auditor Dianne Ray, CPA, says CPAs are some of the most important stakeholders because they understand the context and importance of expenditures in addition to knowing how they work. “CPAs represent the people who are impacted by these tax expenditures,” Ray says.

“The CPAs working for these stakeholders have knowledge that can be helpful to us,” Colin adds.

“Talking to CPAs during the evaluation helps us confirm what is and isn’t applicable,” Standley says. “Even if we have reason to believe that no one can really take a certain expenditure, we have to check. CPAs help us form a more comprehensive picture of how the expenditures are working in addition to explaining the more complicated ones and how they might fit with a business’s overall tax strategy. Legislators are interested in hearing CPAs’ input.”

COCPA members are encouraged to access the project schedule and submit feedback via the OSA website at leg.colorado.gov/node/1147256.

July/August 2019 | www.cocpa.org

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THE NEXT STEP ON YOUR PATH TO SUCCESS.

AT THE DENVER ZOO! August 16, 2019 Denver | CPE: 8.0

Improving your skills and building your confidence.

Both are critical for you to succeed early in your career.

This is why you are invited to the Emerging Leaders Symposium. The event will help increase your understanding of what success means to you and supply tools to develop your strengths.

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REGISTER ONLINE AT COCPA.ORG/EMERGING NewsAccount | July/August 2019

EDUCATIONAL FOUNDATION OF COCPA

2019 Gold Key Award Honorees Announced Each year, the Educational Foundation recognizes with the Gold Key Award the top graduating accounting student chosen by faculty at each Colorado college or university. Congratulations to these outstanding recipients and future CPAs: Adams State University, Kelli Gile

Regis University, Cherie Wheeler

Colorado Mesa University, Steven Schopen

University of Colorado Boulder, William Linkenheil

Colorado Mountain College, Karen Melhart

University of Colorado Colorado Springs, Gabriella Rivera-Ramirez

Colorado State University, Fort Collins, Joanna Kempton

University of Colorado Denver, Kimberly Jaramillo

Colorado State University, Pueblo, Melissa Carlson

University of Denver, Morgan Tomenchok

Fort Lewis College, Karyn Elizabeth Watson

University of Northern Colorado, Alicia Maslyk

Metropolitan State University of Denver, Katrin Eppler

Western Colorado University, Emily Smith

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ince 1958, the Foundation also has helped the best and brightest Colorado accounting students who want to become CPAs through scholarship dollars. Made possible thanks to COCPA members’ financial support, these are based primarily on merit and the student’s commitment to pursuing accounting as a career goal.

In 2004, the Centennial Scholars Campaign raised over $1M for scholarship assistance. Even as the Foundation has made these great strides and helped more students succeed, tuition inflation and economic uncertainty have put education out of reach for many. That’s why your support is so important in ensuring the Foundation’s ability to strengthen the accounting profession for generations to come.

To contribute to the Educational Foundation and continue its important work, go to coloradogives.org/EFColoradoSocietyCPAs.

HONOR HIS LEGACY Contribute today to remember Past Foundation President David M. Dirks with a perpetual named scholarship to help carry on his commitment to future CPAs.

coloradogives.org/DaveDirksCPA To contribute by check or stock donation, contact Alicia Gelinas, alicia@cocpa.org.

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Here Comes the Future: Shocks, Nuggets, and Hands of Cards On June 13, COCPA members in public accounting, industry, and education, a college student, COCPA staff, and guests gathered at the 2019 Leadership Summit for a thought-provoking day of topics and presentations designed to update, educate, inspire, and push the boundaries of conventional wisdom. Here are a few highlights for your reflection.

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hief Economist Patty Silverstein, Development Research Partners, titled her economic update, “Transitions: Economic Update for Colorado,” reminding the audience that, “We expect the leaves on trees to change color. We know that’s going to happen.” It’s all the other change - transition - that can surprise us. A few data points: • China is Colorado’s third largest trading partner. Canada represents 17%; Mexico makes up 15%.

cant implications for where people spend their dollars and the impact on sales tax revenues.

• Global growth is forecast to be about 3.3% for 2019. U.S. growth is forecast at 2.3% for 2019 and 1.9% for 2020, according to the International Monetary Fund.

• Colorado wages have been increasing faster than inflation but not faster than housing costs. Boulder housing is the most expensive.

• At July 2019, the U.S. will record its longest economic expansion in history - 121 months. The second longest period lasted 120 months in the 1991-2001 period.

The economy doesn’t get “tired” - it gets shocked by something.

• Boulder is the fastest growing employment location in Colorado - even though it’s expensive to live there.

• Colorado is the 7th fastest growing state at +1.4% from 2017 to 2018. Idaho and Nevada are coming on strong at 2% or more.

• People move in accordance with their perception of job opportunities, hence the ups and downs in net migration. When no jobs are available anywhere, people ask, “Where do I want to live?” Colorado has been a popular choice.

• The primary Colorado labor force is age 24 to age 54 - and showing an 11% growth.

In comparison, Coloradans age 64 to 100 have grown +57%. This portends signifi8

NewsAccount | July/August 2019

• 62% of employment statewide is Denver-based.

• Government is the largest supersector employer in Colorado (445,000 workers).

Mining and logging is the smallest supersector employer (28,300 workers).

• (Sole) Proprietors Employment constitutes 25.6% of Colorado’s total employment - the 4th strongest in the U.S. where the average is 22.6%.

• Healthcare and Wellness is the largest concentration of one-year employment growth in 2017-2018, the most recent data available.

• IT Software is the fastest growing employment sector.

“Colorado wages have been increasing faster than inflation but not faster than housing costs.”

LEADERSHIP

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rchitect of the Future Dr. Thomas Frey, founder of the DaVinci Institute and internationally recognized futurist, began his presentation, “The Coming Waves of Disruption and Opportunity That Will Redefine Our Future,” with this thought: “Our understanding of the future is continually changing. The future is not a destiny; it’s a journey. And, every future industry starts as a micro industry.” Dr. Tom reminded the participants that all information we come into contact with is from the past, making for a backward-looking society.

Nuggets included: • The future creates the present. “If we change people’s vision of the future, we change the way they make decisions today.”

• Consider Disruptive Innovation vs.

Catalytic Innovation. Disruptive innovation disrupts what already exists.

Catalytic innovation creates something completely new.

• Every time we download a mobile app, we eliminate a piece of a job - a very tiny piece. Ergo, we’re not automating jobs out of existence, only tasks. The only job that has been totally replaced is that of the elevator operator.

• Robots and Artificial Intelligence are additional tools. As long as we have problems, we’ll always have work.

• All this technology gives us more breaking points. We need more durable structures, infrastructures, and redundancies.

• Driverless technology will be the most disruptive technology in all history.

• Consider the coming shift from a “just in case mindset” - I have a car just in case I want to go somewhere - to a “just in time mindset” - I call for a driverless car when I want to go somewhere.

“When I was in high school, I learned how to type with my fingers. Today, you learn how to type with your thumbs.”

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arrior Poet Joe Chavez, who capped off the day, observed, “Life deals each of us a hand of cards. We have no control over the hands of cards we’re dealt. It’s all about how we play the cards we’re dealt.” He added: • You can’t steal what I give you.

• It’s not what you are; it’s who you are.

• Respond not react.

• Be yourself, but be nice being yourself.

• We have to tell ourselves the truth about ourselves.

• Deal with life from a position of strength, not weakness.

July/August 2019 | www.cocpa.org

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LEGISLATIVE UPDATE

Lawmaking 2019: Winners and Losers in the Colorado General Assembly

BY BRUCE M. NELSON, CPA

The 2019 Colorado legislative session ended, May 3, 2019. During the statutorily mandated 120-day session, the 100 legislators introduced 654 bills, resolutions, and memoranda including over twenty bills specifically addressing state and local taxes.

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ne sales tax bill, House Bill 19-1240 (HB 1240), will impact every Colorado retailer and resident. Yes, that’s right – everyone. The bill establishes a new economic nexus threshold, requires remote sellers and marketplace facilitators, such as eBay and Etsy, to begin collecting sales tax for those who use their platforms, and changes the sourcing method for collecting sales tax. The bill draws heavily on the Colorado Department of Revenue’s Emergency Regulation issued Sept. 11, 2018 that, after extensions, was set to become effective, June 1, 2019.

Let’s begin with economic nexus. The legislation provides that every remote seller or out-of-state retailer, with more than $100,000 in sales of tangible personal property, commodities, or services, must collect state and state-collected sales tax on a “destination basis.”

Unlike the Emergency Regulation that provided for an additional

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NewsAccount | July/August 2019

economic threshold of 200 separate sales transactions of any amount, HB 1240 provides only the single threshold of $100,000 in sales.

Specifically, the retailer must start collecting sales tax under the new destination rules if (1) its sales last year exceeded $100,000; or (2) on or after the first of the month, 90 days after its sales exceed $100,000.

In the past, Colorado retailers collected sales tax only from purchasers with whom they shared jurisdictions. For example, a Denver retailer making sales via common carrier into Trinidad had only to collect the state sales tax, the only jurisdiction the retailer had in common with the purchaser. Retailers with less than $100,000 in Colorado sales will continue to follow that rule. However, under HB 1240, retailers with more than $100,000 in Colorado sales will now have to collect, in addition to the state sales tax, the city of Trinidad and Las Animas county sales tax as well. Hence, the term “destination sourcing.”

HB 1240’s sourcing requirement goes even further by providing a cascade of sourcing rules as follows: 1. If goods or services are received at the store, the tax rate for the store’s location applies 2. If not received at the store, the tax rate where the purchaser receives the goods applies 3. If neither 1 nor 2 is applicable, source the sale to the address of record kept by the retailer 4. If neither 1, 2, or 3 is applicable, source the sale to the address received at consummation (say, credit card or instructions from the purchaser) 5. If none of the above is applicable, the sale should be sourced to the address from which the property was shipped Special rules are provided for leased equipment and motor and off-highway vehicles. HB 1240 was effective, June 1, 2019, for in-state retailers and will be effective, Oct. 1, 2019, for marketplace facilitators.

WHAT ELSE PASSED Compared to the scope of HB 1240, the other tax legislation changes may seem minor in impact, but they are many and varied. All have been signed by Governor Polis as of June 5, 2019. Following are brief descriptions drawn from the bill summaries.

HB19-1005, Income Tax Credit for Early Childhood Educators, provides an income tax credit of $500 to $1,000 dollars to eligible early childhood educators who hold an early childhood professional credential and who, for at least six months of the taxable year, are either the head of a family child care home or are employed by an early childhood education or family child care program.

However, the bill will not take effect if, at the November 2019 statewide election, voters approve a measure that allows the state to increase the cigarette tax, increase the tobacco products tax, create a new tax on nicotine products, and use a significant portion of the tax revenue for preschool programs and expanded learning opportunities.

HB19–1011, Scope of Manufactured Home Sales Tax Exemption, clarifies and expands the definition of “factory-built housing” and “manufactured homes” to include homes designed to be installed on either temporary or permanent foundations.

HB19-1013, Child Care Expenses Tax Credit Low-income Families, makes Colorado’s child care tax credit permanent. (It was scheduled to expire, Dec. 31, 2020.)

HB19–1047, Metropolitan District Fire Protection Sales Tax, allows a metropolitan district to levy a sales tax to provide fire protection in the areas of the district in which the sales tax is levied.

HB19-1085, Grants for Property Tax Rent and Heat, expands the state’s “PTC” (property tax credit) for low-income seniors from $700 to $850 for property tax and heat assistance from $192 to $250, to be adjusted for inflation. The income thresholds also were increased.

HB19-1135, Clarify Income Tax Credit for Retrofitting a Home, clarifies that the income tax credit for retrofitting a residence is available for changes made to a residence that benefit a qualified individual’s dependent.

HB19-1159, Modify Innovative Motor Vehicle Income Tax Credits, modifies the amounts and extends the number of available years of the existing income tax credits for the purchase or lease of an electric

motor vehicle, a plug-in hybrid electric motor vehicle, and an original equipment manufacturer electric truck and plug-in hybrid electric truck.

HB19-1162, Expand Farm Equipment Sales And Use Tax Exemption, expands the definition of “farm equipment” to include equipment and systems used to identify or track food animals. Previously, cow identification systems and transponders used by a farm dairy to identify and track dairy cows were exempt from the state sales and use tax, but Colorado law did not otherwise exempt any equipment or systems used by a farm operation to identify or track food animals.

HB19-1228, Increase Tax Credit Allocation Affordable Housing, increases the annual aggregate cap of the affordable housing tax credit from $5 million annually to $10 million for the years beginning, Jan. 1, 2020, and ending, Dec. 31, 2024.

HB19-1245, Affordable Housing Funding from Vendor Fee Changes, increases the state vendor fee allowance on sales tax accounts from the current rate of 3.33 percent to 4.0 percent starting on Jan. 1, 2020, and caps it at $1,000 per month per retailer.

HB19-1256, Electronic Filing of Certain Taxes, permits the Colorado Department of Revenue to phase in electronic filing and payment of all taxes and fees the Department administers.

HB19-1264, Conservation Easement Tax Credit Modifications, extends to July 1, 2026, the repeal dates of the statutes establishing CONTINUED ON PAGE 12

Latest Sales Tax Legislation Series WITH BRUCE M. NELSON, CPA

JULY 23

COLORADO SPRINGS

JULY 25

FORT COLLINS

NOV. 5

GLENWOOD SPRINGS

DEC. 10

ENGLEWOOD The one-hour update also is available On-Demand.

Register at cocpa.org/NelsonSalesTax July/August 2019 | www.cocpa.org

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LEGISLATIVE UPDATE CONTINUED FROM PAGE 11 the Conservation Easement Oversight Commission and the program to certify conservation easement holders in the Division of Conservation, set to repeal on July 1, 2019. In addition, the bill: • Eliminates a requirement that the Board of Real Estate Appraisers establish education and experience requirements for conservation easement appraisers • Relocates and modifies certain provisions governing the creation and valuation of conservation easements • Allows the Division of Conservation to use an alternative method acceptable to the Division and the Conservation Easement Oversight Commission to value a conservation easement • Modifies provisions governing a conservation easement working group convened to address specified issues relating to claiming a state income tax credit for the donation of a conservation easement • Requires the owner of property who is granting a conservation easement to execute a disclosure form developed by the Division of Conservation and the Conservation Easement Oversight Commission regarding the easement • Modifies provisions governing when a conservation easement may be extinguished • Prohibits a conservation easement for which a state income tax credit has been allowed from being released, terminated, extinguished, or abandoned by merger, which occurs when the same entity holds both the easement and the land subject to the easement • Makes an appropriation to facilitate the provision of public access to COMaP, the Colorado Ownership, Management, and Protection service which maintains a database and corresponding map of conservation easements and other protected lands in Colorado.

HB19-1280, Child College Savings Accounts, creates the college kickstarter account program to provide initial funding for a college savings account for each child born or adopted in Colorado on or after Jan. 1, 2020, but before Jan. 1, 2040. Ideally, the program will encourage parents to claim the kickstarter funding by establishing an account, and, if sufficient funding from gifts, grants, and donations is received, provide a free financial literacy education program for eligible children, their parents, and other family members.

HB19-1323, Occasional Sales By Charitable Organizations, increases the exemption from state sales tax from up to $25,000 to up to $45,000 of the funds raised by a charitable organization through occasional sales. The bill also removes the requirement that occasional sales by charitable organizations take place for no more than 12 days during any calendar year.

HB19-1329, Wholesale Sales Agricultural Fertilizer Tax Exempt, includes sales of fertilizer and “spray adjuvants” used in the production of agricultural commodities in the definition of “wholesale sales” for sales and use tax purposes, thereby making them exempt from sales tax.

SB19-006, Electronic Sales and Use Tax Simplification System, requires the Office of Information Technology and the Department of Revenue along with stakeholders, within existing resources, to conduct a sourcing method for the development of an electronic sales and use tax simplification system. The bill specifies that after the system is online the Department is required to accept any returns and payments processed through the system for state and local taxing

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jurisdictions. Ideally, the system will encourage home-rule cities to use it voluntarily, as well.

SB19-024, Taxes Paid by Electronic Funds Transfers, authorizes the executive director of the Department of Revenue to require the remittance of severance taxes electronically and to require a taxpayer to remit sales taxes by electronic funds transfer at an earlier hour on the deadline day.

SB19-029, Income Tax Residency Presumption for Military, creates a presumption that the individual’s state of residence is a state other than Colorado if the individual was stationed in another state and provides certain documentation to demonstrate that the other state was the individual’s residence.

House Bill 19-1240 will impact every Colorado retailer and resident. Yes, that’s right - everyone.

SB19-035, Department of Revenue Enforcement Measures, specifies that the period of time wherein a tax must be assessed is extended in the case of a taxpayer whose assets are in the control or custody of a court or in the case of a bankruptcy proceeding. The bill also provides clarifications regarding: • The Department of Revenue’s authorization to sell a delinquent taxpayer’s motor vehicle • Other remedies that a district court has available in the case of a delinquent taxpayer • When property or rights to property must be surrendered to the Department of Revenue and the penalties for failing to do so SB19-088, Revised Uniform Unclaimed Property Act, in 15 different parts, enacts the “Revised Uniform Unclaimed Property Act” as adopted by the National Conference of Commissioners on Uniform State Laws in 2016 with Colorado-specific amendments. The act seeks to promote uniformity among state laws regarding the disposition of unclaimed property.

SB19-233, Holding Company Income Tax Combined Report, provides that any C corporation formed in the United States with either de minimis or no payroll and property, shall be deemed part of a combined return under CRS §39-22-303(11)(a). The bill further clarifies when activities of a partnership are treated as the activity of a member of an affiliated group of corporations.

WHAT FAILED TO PASS Bills that did not make it through the 2019 legislative session include the following: HB19-1058, Income Tax Benefits for Family Leave, would have established leave savings accounts of up to $5,000 annually which individuals could use to pay for expenses while on leave including such things as childbirth, adoption, caring for a spouse, and other related activities.

HB19-1075, Tax Credit Employer-assisted Housing Pilot Program, would have piloted an income tax to promote employer-assisted housing projects in rural areas.

SB19-055, Reduce State Income Tax Rate, would have reduced the individual and the corporate state income tax rate from 4.63% to 4.49%.

HB19-1091, Conservation Easement Transparency, would have required creation of a database of conservation easements with specified information and corresponding maps.

SB19-060, Educator Supplies Tax Credit, would have created an educator supplies tax credit similar to that of the federal credit.

HB19-1112, Child Safety Accounts, would have created a child safety account to be used to pay for eligible expenses necessary for the education of qualifying students.

HB19-1123, Income Tax Deduction for 529 Account K-12 Expenses, would have made changes to Colorado law similar to those in the federal “Tax Cuts and Jobs Act” which expanded the scope of IRC §529 plans to include distributions for tuition expenses for elementary or secondary public, private, or religious schools.

HB19-1164, Child Tax Credit, would have repealed the contingent start of a 2013 tax credit that was tied to passage of certain federal legislation that was never enacted.

HB19-1165, On-site Wind Turbine Manufacturing Property Tax Exemption, would have exempted business personal property used to manufacture wind turbines from the business personal property tax.

HB19-1317, Income Tax Credit and Senior Property Tax Exemption, would have created a refundable income tax credit for qualifying seniors that would replace the current senior property tax exemption.

SB19-130, Sales Tax Administration, would have enacted numerous sales tax simplifications such as single filing and payment for all state-collected jurisdictions, free filing software, and a single uniform tax base.

SB19-131, Exempt Certain Businesses from Destination Sourcing Rule, effectively would have reversed most of the provisions of the Department of Revenue’s Emergency Regulation.

SB19-140, Income Gain on Transactions Using Virtual Currency, would have excluded gains from the sale or exchange of virtual currency for other than cash or cash equivalents, up to $600 per sale or exchange.

Bruce M. Nelson, CPA, is Editor-in-Chief of Wolters Kluwer CCH’s Journal of State Taxation and occasional presenter for the AICPA and the Colorado Society of CPAs. Contact him at 970- 420-3360 or bruce.nelson@brucenelsoncpa.com.

ALERT FIRMS PROVIDING ELECTRONIC HOSTING OF CLIENT DOCUMENTS AICPA Ethics Interpretation ET Section 1.295.143 became effective, July 1, 2019. The new interpretation explains that taking responsibility for hosting an attest client’s data or records impairs a CPA’s independence. Examples include: • Becoming the sole host of a client’s financial or nonfinancial information system.

• Serving as custodian for the client’s data in such a way that the client’s data are incomplete and accessible only through the CPA. • Providing business continuity or disaster recovery services to the client.

The interpretation follows the fundamental principle in the independence rules that CPAs should not perform for attest clients activities that are management’s responsibility.

30 years experience in public accounting 25 years of service with Lang & Company, CPAs 8 years experience as a business broker for CPAs

Please call for your free consultation 303-726-7646 www.thomaslangcpabroker.com tom@thomaslangcpabroker.com Colorado Real Estate License and CPA license Member of the Colorado Society of CPAs Member of Colorado Association of Business Intermediaries

July/August 2019 | www.cocpa.org

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Going Extremes Alan Bennettto Tackles the Going to Extremes: Grand Traverse

Tackling the Grand Traverse and Other Life Challenges Coloradans will argue that the Centennial State is the best place in the

country – and maybe the world – to get hooked on the outdoors. But

BY NATALIE ROONEY it turns out, there are actually other outdoorsy hotspots as well. Alan Bennett, CPA, calls his hometown, Boone, North Carolina, a mecca for Coloradans will argue that the Centennial State is the best place in the outdoor enthusiasts and says growing up there served as a springboard country – and maybe the world – to get hooked on the outdoors. But to a life of adventure in Colorado. it turns out, there are actually other outdoorsy hotspots as well. Alan Bennett, CPA, calls his hometown, Boone, North Carolina, a mecca for outdoor enthusiasts and says growing up there served as a springboard to a life of adventure in Colorado.

July/August 2019 | www.cocpa.org

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MEMBER PROFILE

F

rom a young age, Alan Bennett, CPA, was fishing, biking, and skiing in the mountains around Boone, North Carolina, and laying the foundation for what was to come – a move to Colorado and a passion for extreme adventures.

Bennett, director of operational accounting at SM Energy in Denver, ended up in Colorado after he accepted a job with EY. “The premise was that I’d come out here for a few years, ski, bike, fish, and then go home,” he says. “But I never went home. Now, this is home. I have a wife, two boys, and friends we call family, as is the case with us transplants.”

They’re about having big, crazy adventures, too. “We’re always talking and scheming about what’s next,” he says.

The what’s next for 2019 turned out to be the Grand Traverse, which Bennett calls “a bucket list race. It’s the most time-honored backcountry ski race in North America. So of course, we have to do it!”

After so many endurance mountain bike races, Bennett felt he’d dialed in his mountain bike racing system. “I know how and when to eat, exactly what equipment to take, and could plan for every contingency with every piece of emergency equipment.” But the Grand Traverse put a new wrinkle into everything.

As a team, Bennett and Green would spend nine to ten hours backcountry skiing the 40 miles from Crested Butte to Aspen across the Elk Mountain Range, up and over three mountain passes, and climbing more than 6,800 vertical feet. To ensure competitor safety, racers must have a partner, carry mandatory gear, and begin the race at midnight when avalanche danger is low.

Bennett notes that the Grand Traverse is also called the Grand Divorce because you have to work with your partner for ten hours under extreme conditions.

EXTREME TRAINING While Bennett had completed a ski mountaineering event and had been backcountry skiing on multi-day hut trips for more than a decade, the Grand Traverse was his first endurance ski event. “I had been on some big adventures but hadn’t put it together on a racecourse,” he says. “And what a cool format.”

The Grand Traverse, Bennett’s “bucket list race”

GOING THE DISTANCE Not long after his move to Colorado and during his first busy season, Bennett decided it was a great time to take part in his first endurance event: the Original Growler, a mountain bike race covering approximately 64 miles of technical singletrack.

For the next decade or so, he kept adding endurance events, mostly on his mountain bike, to his calendar. He picks a new challenge every year. He has completed the Leadville Trail 100 multiple times, returned to the Growler for old time’s sake, and last year, completed the Breck Epic, a six-day, 220+ mile race with more than 40,000 vertical feet of climbing in and around Breckenridge.

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Work and family keep him from packing his dance card with too many events, but he says having a few on his schedule keeps him balanced personally and professionally. “It’s miserable while it’s happening but ultimately fulfilling,” Bennett says of endurance racing. “Like your first busy season in public accounting.”

Bennett says the endurance events are a personal challenge, but it’s fun to have friends do the events with him. “You’re colliding and coalescing with people out there.”

THE GRAND TRAVERSE For Bennett and his training/race partner-in-crime George Green, the endurance events haven’t just been about racing.

A busy career and a young family don’t exactly produce the perfect training opportunities. Bennett’s solution was to wake up obscenely early and drive somewhere in the wee hours of the morning to train. “Early mornings are the only time I have for myself that doesn’t compromise time with my family or work,” he says. Many times, 3:30 or 4am – or whatever it took – found him heading to Golden to put in 8,000 feet of riding or to the mountains to put in a couple of hours of backcountry skiing before going to work.

Weekends were spent on “big, long missions,” skiing from Boulder to Winter Park or on multi-day hut trips. “It’s all about making training fun,” Bennett says of the early mornings on Berthoud and Jones passes and in Rocky Mountain National Park. “There

were some cold starts, but it’s a small victory when you’re back at your desk by 9:15am. and you’ve already done all of that. It seems so simple to me, but people give me weird looks when I talk about it.”

Bennett credits his “wonderful wife” Sara who helps carve out blocks of time on weekends so he can put in the effort to train. “She likes to do these events, too, so that helps.

Our lives revolve around the communities of these sports, the friendships we’ve made, the events, and being outside.”

GO TIME If you haven’t figured it out yet, the Grand Traverse is extreme. Even among endurance athletes, the event is legendary. Frequently, the race turns into the Grand Reverse, and the course circumnavigates Mount Crested Butte when avalanche danger is too high. The course is littered with naturally occurring avalanche paths. With record snowfall this year, it looked unlikely that the race would happen, but officials declared the course safe. Racers were able to follow the traditional route from Crested Butte to Aspen, March 28-30.

The pre-race meeting was somber. Two men had died in an avalanche on the race course while training for this year’s race. In fact, the course ran long to circumvent avalanche danger.

“It’s a nervous start,” Bennett admits. “You don’t sleep leading up to it.”

Midnight was go time.

“You exit the resort, and you’re in the backcountry,” Bennett says. He describes a fast start, a long ascent up Star Pass, and a technical ski off the saddle. Then came the never-ending slog to Ashcroft Ridge. “It was inspiring to have been in the middle of nowhere all night long. Then the sun comes up, and you get this second wind. What a crazy experience. It was unlike anything I’ve ever done.”

Bennett and Green weren’t sure what to expect timewise. “We set a mental target of ten hours. Being newer to the sport, we left a lot of time on the course. To see the people who understand ski mountaineering at the level I understand mountain biking was incredible. They move up the mountain at such a pace.” At the bottom of Star Pass, they thought they were doing well, but there were already people an hour ahead of them at the top of the pass. “It’s always humbling,” Bennett says.

Between the mandatory emergency gear so they’re always prepared for an overnight bivouac, layers of clothing, headlamps, food, freezing drinking water, and all of the other things to plan for, a lot can go wrong out in the backcountry. “I’ve been through a lot with George. We know how we’ll react. We’re both pretty resilient,” Bennett says. “But there were times when I knew he needed a lighthearted joke to break the mood. In turn, he knows when to push my buttons.”

There were no real low moments on the Grand Traverse for Team Bennett and Green.

“We were just happy to be out there,” Ben-

it’s not true. In this new work world, there’s more to being an accountant. There are so many people doing cool and challenging things, personally and professionally.”

He considers himself lucky to work at SM Energy. “They know I’m a crazy person, and they see it as a positive benefit to the organization.”

The early mornings, the long training period, the brutal races – “It’s all about the journey,” Bennett says. “You learn to love that pain.

You learn to appreciate that the more you push your physical limits, the more you push your psychological and emotional limits.

“Life is full of challenges, personally and professionally. Endurance sports keep my tools sharp.” nett says. “I wasn’t miserable for a minute.

I was so stoked. You learn to appreciate the journey. You’re in that flow state – a relaxed, all out effort, which may seem paradoxical, but you learn to find and hopefully stay in that.”

THE GRAND FINISH The Grand Traverse’s finish line brings the athletes right into Ajax. “It’s wild,” Bennett says. “You see civilization for the first time when you see signs for Aspen’s ski boundary.

You descend into the mayhem of downtown Aspen on a spring day and wonder what just happened.”

He says he has never slept harder than he did that night. “Endurance athletes recognize this race as an especially difficult event, which makes it that much more appealing.

It’s a total body effort.”

There are, of course, more endurance events on Bennett’s calendar for the year, including potentially racing at the mountain bike nationals in Winter Park. He says he’ll see how it all pans out with three ultra-distance mountain bike races scheduled. And Bennett and Green are always talking about what might be next. They have their eyes on some big stage races in Canada and Europe.

I come back a better and more balanced person. As professionals and athletes, we grow during times of stress. That’s the growth mindset. Life is full of challenges, personally and professionally. Endurance sports keep me in that mode and keep my tools sharp.”

Endurance athletes tend to be known for their composure and calm. “That helps me in the workplace,” Bennett says. “You see stress as a challenge and not a threat when you’ve been on your bike for 10 hours, know what real pain is, and experience all of the mental ups and downs.”

Bennett says that mental aspect is what it all comes down to during endurance events.

“Limits are self-imposed. There are no limits.

There’s a point at which endurance sports, your family, and your professional life all intersect. You learn to abolish those limits, not just physically, but emotionally, as well.

You’re capable of being a whole heck of a lot more than you thought you could be.”

Wise words, whether facing challenges in sports, at work, or in life.

Bennett says some people may find it funny to relate endurance racing success to accounting, but he sees the parallels.

“Accountants get this rap as risk averse, but

July/August 2019 | www.cocpa.org

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PLANNING STRATEGIES

Financially Fit Aging: Combatting Elder Fraud

BY AMY KING, CPA, CGMA

This is the third article in our series about helping your clients – and perhaps you and your family – prepare for the many aspects of aging beyond financial planning.

W

ith the changing demographics of America, elder fraud is becoming the crime of the century and is expected to worsen. Seniors can’t afford to lose finances, as they don’t have time to recover from the damage. Their financial losses also impact food, medication, and housing, which further exacerbates their situation.

Senior exploitation and fraud are defined as the illegal or improper use of a senior’s resources for another’s advantage against their will or without their knowledge.

Senior exploitation involves someone the senior knows – a family member, caregiver, neighbor, or fiduciary agents, and can even be financial and legal professionals.

Senior fraud involves a stranger such as a telemarketer, or marketing or investment promoter.

While most people think strangers are the ones committing elder fraud/exploitation, studies have shown that family members commit crimes as much or more than strangers do (Source: MetLife). It has been estimated that two-thirds of all abusers are family members.

While no one really knows the true impact of fraud and exploitation, various studies have estimated loss levels ranging from $2.9 billion to as much as $35 billion. The wide variance is the result of the unfortunate fact that victims don’t talk about what happened or report it to authorities because they’re embarrassed or fearful the perpetrators will come after them.

Many older individuals’ situations make them vulnerable and therefore easy targets.

Today’s seniors were raised in a different era and brought up to be polite, trusting, and accessible. They are willing to listen to telemarketers and unknown parties, participate in sweepstakes, and attend commercial free lunch seminars.

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Today’s seniors were raised in a different era and brought up to be polite, trusting, and accessible.

The older population’s vulnerability happens because seniors are more likely to: • Be dependent on someone to provide care, transportation, or some other service • Feel pressure from children or caregivers to share money or change their wills – many kids feel entitled to their parents’ wealth • Have experienced the loss of a spouse/ partner and are isolated from other accountability partners, or are depressed

EVERCHANGING SCAMS The National Council on Aging has outlined the top ten scams facing the elderly population: 1. Medicare/health insurance. Perpetrators pose as a Medicare representative to older people to get their personal information, or provide bogus services or products at makeshift clinics and get personal information to bill Medicare and pocket funds.

2. Counterfeit prescription drugs. Seniors looking to save on prescriptions online

CPAs make a DIFFERENCE end up buying counterfeit drugs that won’t help medical conditions and may even be unsafe, causing more harm.

3. Funeral and cemetery scams. Scammers read obituaries and call the widow/widower/family claiming the deceased has an outstanding debt.

4. Fraudulent anti-aging products. Scams with fake Botox, or, even worse, labs that work with the root neurotoxin, can cause major damage. The market for bogus homeopathic remedies that don’t do anything has increased.

5. Telemarketing/phone scams. One of the most common schemes involves fake charities. Scammers appeal to older individuals who are heartfelt about animals, disease cures, children. Natural disaster scams are also prevalent. Callers are now spoofing telephone numbers to make them appear as familiar numbers so that you’ll answer.

6. Internet fraud. Pop-up windows simulating virus scanning software fool victims into downloading fake antivirus programs or open an actual virus on the user’s computer. Email/phishing scams can trick users by asking them to update or verify personal information.

7. Investment schemes. These scams promise to make better returns and usually target retirement savings or home equity.

8. Homeowner/reverse mortgage scams. Since many older adults own their homes, this is a target-rich environment whereby scammers encourage the owners to exchange the title of their home to receive cash, and the cash never materializes. Or, scammers send official looking letters that promise to help reduce property taxes for a fee.

9. Sweepstakes and lottery scams. Scammers inform their victims that they’ve won a lottery or sweepstakes and need to make a payment to “unlock” their prize or pay for the taxes on the prize before collecting it. Usually a fake prize check is provided that proceeds to bounce from the account (after the tax payment has already been removed).

10. Grandparent scams. These usually involve a call from a fake grandchild indicating they don’t want their parents to find out, but they really need help because they’ve been in an accident or are in trouble with the law and need funds wired to them. Scammers are using social media to find out tidbits about a person and their relatives that make the story sound more believable.

Other common scams include: Online romance scams. The scammers groom individuals who are lonely, develop a relationship, and then try to make the family seem like the enemy. In some cases, scammers progress to asking for loans, faking emergencies or illnesses that they say require surgery, or pretend they are going to lose their house.

Jury duty. A caller claims to be a jury coordinator and says an arrest warrant has been issued because the individual failed to show up for jury duty. If the individual says he or she never received a summons, the caller asks for a Social Security number and date of birth to verify information.

Social Security. By now, most people have heard of the fraudulent IRS agent phone calls indicating that the taxpayer owes money and needs to pay immediately. A newer twist surrounds “Social Security” calling to say there is a problem with getting payments to the individual and requesting confirmation of personal identifying information to be able to correct the payments.

2019 HEROES & HEROINES SOUGHT Nominations Deadline: September 20, 2019 Each and every day, away from the headlines, in businesses large and small across Colorado, and in others’ lives, CPAs make a difference. We will honor those contributions with the 2019 Everyday Heroes and Heroines Awards, to be presented at the CPAs Make A Difference Celebration, Nov. 7, at the Grand Hyatt, 1750 Welton St., Denver.

If you know a CPA who should be considered, please submit a nomination. Send a narrative, not to exceed three pages, explaining why you believe the candidate should be recognized and detailing his or her accomplishments.

Nominees must hold a CPA certificate and be a COCPA member.

They should be “everyday” heroes and heroines who haven’t been recognized widely for their contributions. Nominees should demonstrate significant service in one or more areas: INVOLVEMENT: Describe the nominee’s level(s) of involvement, length of involvement, and time devoted to nonprofit organizations and community activities.

LEADERSHIP: Describe the nominee’s position(s) held and substantial accomplishments achieved in one or more community organizations, including taking the lead in identifying and solving a problem, founding or rescuing an organization, or developing an innovative program.

IMPACT: Describe how the nominee’s actions benefited the community, improved the overall quality of life, helped others overcome adversity, or served as a role model for CPAs exemplifying the profession’s core values of integrity, competency, and objectivity.

For more information and to submit your nomination electronically, contact Terry Cervi, terry@cocpa.org, 303-741-8610.

CONTINUED ON PAGE 20 July/August 2019 | www.cocpa.org

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PLANNING STRATEGIES CONTINUED FROM PAGE 19 Home repair scams. These scams target people through door-to-door campaigns and telephone calls, offering services at discounts or explaining that changes and repairs need to be made immediately.

They ask for payment in advance and never deliver services.

Sadly, the potential ways to fraud our senior population seem endless.

IDENTIFYING THE SIGNS OF FRAUD To guard clients or a loved one against financial exploitation, it’s important to know the warning signs: Behavioral Activity • Sudden behavioral changes or lifestyle changes, such as people accompanying the elderly who show unusual interest in the person’s finances, won’t allow the client to speak, or don’t want to leave the individual alone to talk • Elder shows fear, anxiety, submissiveness towards a family member, caregiver, or anyone accompanying him or her on a visit with you • Elder has withdrawn from regular relationships, has become isolated from friends or family, and has new “best” friend associations • Noticeable neglect in appearance, grooming, or hygiene Account Activity • Sudden changes in financial accounts: debts increasing, uncharacteristic unpaid bills, running out of money regularly, frequent large withdrawals, new joint accounts appearing • Abrupt changes in legal documents, financial documents: Powers of attorney, beneficiaries, wills and trusts, property titles, and deeds • Suspicious signatures or forged signatures on documents AN OUNCE OF PREVENTION Review some common preventative measures with your clients and loved ones: • NEVER give out PII (personal identifying information) such as credit card, bank account, or Society Security numbers without verifying the source.

• Phone calls. Don’t respond. Thank them for their time and hang up, or contact them once you’ve had time to conduct some research. Tell clients to develop a refusal script.

• Ask for the offer in writing.

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• Never pay to play. Organizations cannot legally require a purchase or fee to win or claim a prize.

• Be on guard for imposter companies.

Many use names that sound similar or have logos that are close to the real thing. The client can always get back to them after looking it up.

• Never give in to immediate pressure tactics. Tell them you’d like to research and explore.

Specific to investment and financial scams, be suspicious of anyone who promises or guarantees that an investment will perform in a predictable or certain way. All investments carry some degree of risk. If it sounds too good to be true, it probably is. Counter emotional persuasion. If a “can’t miss” deal is so great, why is the person telling you versus keeping it to themselves? Check that products are registered and advisors are licensed, although this does not guarantee safety from fraud. Beware of missing documentation and reports of investment fundamentals and performance.

Consider having joint fiduciaries or a set of checks and balances for financial accounts with a trusted contact who receives reports and banking information.

YOUR ROLE As trusted advisors, CPAs can play a critical role in helping to prevent financial exploitation by knowing the red flags, being in a position to see behavioral changes or changes in assets, and taking steps to report information to authorities.

The AICPA Code of Professional Conduct prevents CPAs from disclosing client financial information, and the consent of the client must be obtained, so sometimes this can be complicated and especially difficult if the suspected fraudster is a family member or trusted authority.

Effective July 1, 2014, the Colorado Elder Abuse Mandatory Reporting Law requires specific professionals and individuals to report to law enforcement instances of suspected abuse, caretaker neglect, and exploitation of at-risk elders age 70 and older. CPAs are not currently listed as mandatory reporters.

If you suspect elder fraud or abuse, you can report it through the National Center on Elder Abuse (NCEA) which provides state reporting numbers: www.ncea.aoa.gov.

RESOURCES COLORADO RESOURCES • Colorado Division of Securities: 303894-2320 • Colorado Legal Services: 303-8371313 • Adult Protective Services: Contact your county at serveourseniors.org/ connect/Colorado • Colorado Department of Health and Human Services, Adult Protective Services: coloradoAPS.com • Colorado Department of Regulatory Agencies: askDORA.colorado.gov • Colorado Coalition for Elder Rights and Abuse Prevention: ccerap.org • Colorado Attorney General: ago. state.co.us • Colorado Bureau of Investigation (CBI): colorado.gov/cbi; hotline: 855443-3489 • Colorado Consumer Protection Agency (part of the Attorney General’s office): stopfraudcolorado. gov • Your local police department NATIONAL RESOURCES • Eldercare Locator: 800-677-1116 (government-sponsored national resource line); eldercare.gov • Stopfraud.gov (federal task force) • Your bank, credit card, and financial institutions • AARP Foundation Elder Watch: aarpelderwatch.org ARTICLE SOURCES: • Council for Elder Abuse Prevention • National Council on Aging: ncoa.org, Top 10 Financial Scams Targeting Seniors • AARP Fraud Watch Network: aarp.org • FBI: fbi.gov/scams-safety/fraud/ seniors • National Committee for the Prevention of Elder Abuse: preventelderabuse.org • MetLife: metlife.com (MetLife studies 2009, 2011) • Society of Certified Senior Advisors (CSA) Working with Older Adults

M.J. Smith & Associates offers INSTITUTIONAL INVESTMENT MANAGEMENT SERVICES TO THE INDIVIDUAL INVESTOR It’s no secret that institutional investors apply a lot of intellect to the money they are managing.

From corporate pension plans to endowments and foundations, sophisticated investors demand clear and disciplined investment processes created by investment management consultants who work in their clients’ best interests.

But we think institutional investors shouldn’t be the only ones to benefit from written investment policy statements, transparent portfolio management costs, avoidance of conflicts of interest and a comprehensive investment monitoring process. That’s why, at M.J. Smith and Associates, we treat individuals the same way we treat institutions – with honesty, integrity, objectivity, and a clear, understandable process.

Whether the portfolio is simple or sophisticated, every investor needs a trustworthy advisor. And it’s our pleasure and privilege to be of service.

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5613 DTC Parkway, Suite 650, Greenwood Village, CO 80111 | 303.768.0007 | www.mj-smith.com M.J. Smith & Associates is not a registered broker/dealer and is independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through M.J. Smith & Associates. Raymond James and its advisors do not offer tax or legal advice. · Mark Smith is named on Forbes’ Top 200 Financial Advisors list in 2016, 2017 and 2018.1 · Smith is named on Barron’s America’s Top 1,200 Financial Advisors in 2017, 2018 and 2019.2 Smith has been on the Barron’s list each year since its inception in 2009. · Smith was named to the Financial Times Top 400 Financial Advisors in the U.S. in 2017.3 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 August 2018): 25,732 Advisor nominations were received, based on thresholds. 9,596 Advisors were invited to complete the online survey. 7,174 Advisors were interviewed by telephone. 1,503 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 future investment 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.

2. Barron’s is a registered trademark of Dow Jones & Company, L.P. All rights reserved. The rankings are based on data provided by over 4,000 individual advisors and their firms and include qualitative and quantitative criteria. Factors included in the rankings: assets under management, revenue produced for the firm, regulatory record, quality of practice and philanthropic work. Investment performance is not an explicit component because not all advisors have audited results and because performance figures often are influenced more by clients’ risk tolerance than by an advisor’s investment picking abilities. The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of advisor’s future performance.

Neither Raymond James nor any of its Financial Advisors pay a fee in exchange for this award/rating. Barron’s is not affiliated with Raymond James.

3. The FT 400 was developed in collaboration with Ignites Research, a subsidiary of the FT that provides specialized content on asset management. To qualify for the list, advisers had to have 10 years of experience and at least $300 million in assets under management (AUM) and no more than 60% of the AUM with institutional clients. The FT reaches out to some of the largest brokerages in the U.S. and asks them to provide a list of advisors who meet the minimum criteria outlined above. These advisors are then invited to apply for the ranking. Only advisors who submit an online application can be considered for the ranking. In 2017, roughly 790 applications were received and 400 were selected to the final list (50.6%). The 400 qualified advisers were then scored on six attributes: AUM, AUM growth rate, compliance record, years of experience, industry certifications, and online accessibility. AUM is the top factor, accounting for roughly 60-70 percent of the applicant’s score. Additionally, to provide a July/August 2019of any | www.cocpa.org 21 diversity of advisors, the FT placed a cap on the number of advisors from any one state that’s roughly correlated to the distribution of millionaires across the U.S. The ranking may not be representative one client’s experience, is not an endorsement, and is not indicative of advisor’s future performance. Neither Raymond James nor any of its Financial Advisors pay a fee in exchange for this award/rating. The FT is not affiliated with Raymond James.

GAME CHANGERS

How an Inventor is Changing the Ways CPAs Do Business

BY NATALIE ROONEY

As a CPA, you might not have given a lot of thought to things like how your eyes, body, brain, and voice function to do your work every day. Good news: Sherry Comes, managing director and conversational AI practice lead at Deloitte Consulting, has spent her career thinking about such things. What she has learned is changing the way CPAs do business.

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THE TECHNOLOGIES iomimicry, or mimicking the human, is an approach to innovation that seeks sustainable solutions to human challenges by emulating nature’s time-tested patterns and strategies.

Conversational artificial intelligence (AI) refers to the use of messaging apps, speech-based assistants, and chatbots to automate communication and create personalized customer experiences at scale.

Sherry Comes describes herself as an inventor who uses both of these technologies to help humans achieve work. “I augment the way humans do work so they can focus on high value work,” she says. “We can give machines access to the repetitive work so humans can do more.”

When explaining the technologies, Comes says to think about the human body. “You see, you smell, you speak. Biomimicry can improve work by augmenting with digital innovation. It’s fun!”

For humans’ eyes, that means smart vision. For our brains, there’s AI. For our bodies, that means robotics. And for humans’ voices, there’s conversational AI – Comes’s specialty. She has a lot of experience with all of this, by the way. She has run supercomputers, started multiple businesses, was a Distinguished Engineer at IBM Watson, invented Smart TV that you see in grocery stores, and was the first person to take cognitive systems to Africa. Comes also invented neural chat.

Now she’s bringing all of these technologies to Deloitte clients.

LETTING THE MACHINES DO THE WORK “Accounting is heavy lifting,” Comes says. “The back-office functions of the accounting profession are prime for AI. People think accounting is a boring industry, but digital innovation can take you on a journey and improve any business operating procedures.”

In fact, Comes says companies which are “back-office” heavy are some of the leaders in technological innovation because they’re using it to improve processes. When you’re working with a business process, the first thing you do is lean it out and optimize it, she says. “You look at every single step. Does it involve people using their hands?” Those “hands on” steps are where conversational AI comes into play. AI can help you recall regulations and give you expert access to that “knowledge garden,” Comes explains.

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Conversational AI offers efficiencies through the creation of intelligent virtual assistants who allow customers to call in, conversationally talk through their issues, and solve their problems without speaking to a human unless absolutely necessary. “It saves companies money because humans get involved only when there is a high touch exception,” Comes says. “Two things make people mad: traffic and the ‘touch one for, touch two for’ process. Conversational AI eliminates that. You know you’re not talking to a human, but you can get where you want to go faster.”

For those who question whether customers will adapt, consider Siri and Alexa. “We use them every day,” Comes says. “If you make the process a conversational interface, it can save a ton of money in a service center. No more boring work for employees – they’re doing higher value work. Customers are happy because they can speak naturally and resolve their issues.”

The ways AI can help do business better, faster, and smarter are endless: • RFID tagging to track assets is expensive. So put up a drone, take pictures, and compare the images – smart vision.

• Grocery stores are using digital imaging to take pictures of shelves to track how inventory is flowing in and out.

• Hospital trash cans - did you throw something away? The trash can is tracking whether you took your medicine.

• The volume on a sound system can go up or down based on the ambient noise in a room.

“Customers come to us with business challenges,” Comes says. “Our goal is to address challenges any way we can through digital innovation.”

Even with all of the cool things technology can do, Comes says it isn’t even close to doing what a human can do. “Humans can do so much that every time I learn more about AI, I think, ‘I can’t believe humans

“Artificial intelligence doesn’t replace humans.

It improves the work.” can do this,’” she says. “We’re always learning. Intelligence is additive.

You gather and keep intelligence. It’s all time, money, and effort. If you put smart people on a problem, you’re going to figure it out.”

AI presents a huge opportunity for the accounting profession, Comes says. Creating intelligent assistants that do the repetitive, low-value cognition work is key. “If you believe we can create these assistants to be intelligent, they’ll have liability,” she says. “They’ll need to be trained, audited, and certified.” Now, not only do accountants need to audit the humans but also the intelligent assistants. “Are they trained and doing what’s ethical?” she asks. “It’s a whole new world of business for auditors and people who work in this space. Human work will be different, but the work will be there. The intelligence doesn’t replace humans. It improves the work.”

PIVOTING TO INNOVATION Michele Hansen, audit and assurance managing director for Deloitte, remembers the days when everyone was issued his or her own laptop. It was the early 2000s, and mobility was increasing. “It was a big deal to be able to use Word and Excel,” she recalls.

streamlined audit,” Hansen says. “We can be less intrusive by leveraging technology in the confirmation process and coordinating with the client. As a result of technology and digitization, we can drive to deeper insights and provide deeper value.”

EMBRACING CHANGE Hansen says change is about culture and thinking about how to do things differently. “It’s well within any organization’s ability, large or small, to embrace a continuous high standard of quality.”

“We’ll see a rapid pace of transformation as we continue to leverage the digital technologies that are available,” she says. “Looking at it across the profession, large and small firms of all sizes, this impacts everyone.”

“There’s no need to fear this,” Comes says of all of the new opportunities technology brings to CPAs. “Embrace it, and look at how we can improve the world.”

Hansen describes the last five years as a pivot to innovation. “We’re leveraging innovation to drive enhanced audit quality, providing insights and greater value,” Hansen says. “The pace of change over the last five years has been remarkable. It’s exciting for our auditors and also for our clients. We’re seeing how we can look at an audit differently and harness the power of technology.”

Hansen says audit has been, and continues to be, a people-centric business. “Technology is never going to replace the human side of audit,” she says. “Technology, in large part, exists to serve the humans. Humans are able to interact differently and evolve into a different model.”

The digital transformation is leading to a talent transformation, as well. Now that auditors are being liberated from the routine tasks, such as footing a CAFR for hours, auditors find themselves with more time to exercise their professional judgment, perhaps working on a team with a data scientist and a mathematician. “The talent model is very different,” Hansen says. “We are looking for the ability to be comfortable with data, as well as spreadsheet and analytic skills, to draw conclusions, the skill set of being comfortable working with data and with peers from different backgrounds.”

CLIENT EVOLUTION Hansen emphasizes that technology doesn’t just streamline the audit process. It streamlines how Deloitte is working with clients. “We are leveraging technology for analytical and predictive procedures, and all aspects of risk management,” she says.

Clients are evolving right along with the profession. “They completely understand the imperative for innovation, the drivers for change, the movement to the cloud, and the art of using big data,” Hansen says. “So, they are very much looking for their auditor in the same regard.”

She says she hears clients asking questions about how Deloitte is evolving the audit process and what the audit of the future looks like.

“People will still be on site regardless of how the technology evolves.

Audit always involves people in the process,” Hansen says. “Client service and professional judgment are needed in rendering an audit.”

The audit room still exists with lots of binders and paper, but it’s much more digital than before. And with digitization comes new opportunities for mobility, security, and the ability to harness the data in new ways. “Through technology, we can drive a more

Save the Date August 23, 2019

Colorado History Museum, Denver

Women to Watch Awards for Emerging Leaders and Leaders of Note will be presented at lunch during the Women’s Summit.

To attend, contact Terry Cervi at terry@cocpa.org.

July/August 2019 | www.cocpa.org

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FUTURE FORWARD

Embracing the Power of Blockchain Technology

BY DANIEL BURRUS

During the digital transformation, we have witnessed traditional forms of physical media fall out of favor as users abandoned their treasure trove of CDs, DVDs, books, magazines, and even photo albums to partake in an entirely clutter-free life. Digitally optimizing our lives has enabled us to remove shelves, cabinets, and dust magnets while we get our entertainment fix from the likes of Netflix, Spotify, and the endless list of streaming alternatives.

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e often forget just how much technology has changed our lives in the last few years. Therefore, it should be no surprise that our love of cold hard cash could be the next twentieth-century casualty to fall by the wayside.

Over in Europe, Denmark and its Scandinavian neighbors Norway and Sweden are leading a charge toward a cashless society that will see the end of tooth fairy payments for children. But it will equally wave goodbye to a world of money laundering, fraud, and tax evasion. The bonus of replacing scrambling around for loose change for a purchase, or riding public transportation with contactless payment by swiping a card or smartphone, is incredibly appealing for most users.

The concept of handing over a handful of silver coins in exchange for any product or service can feel quite primitive in our modern world dominated by technology. However, contactless and smartphone payments are not the end-all, be-all payment options, as there is another game changer in the form of a cyber currency. But does this 24

NewsAccount | July/August 2019

technology disruptor have the power to transform our traditional banking system?

Blockchain is the digital ledger software code that powers Bitcoin.

As this system has grown in popularity, the CEO of Digital Asset Holdings, Blythe Masters, has her sights set on changing the way banks trade loans and bonds in a way that could dramatically change the way we look at both business and banking. Masters delivered a massive wake-up call to finance leaders in comparing the influx of changes to the arrival of the internet when she advised, “You should be taking this technology as seriously as you should have been taking the development of the internet in the 1990s. It’s analogous to email for money.” The speed in which technology trends can go viral illustrates how an internet of finance could become a reality sooner rather than later.

The interesting aspect of Bitcoin is the ability to buy and sell without the need for an intermediary. This represents a paradigm shift in the

management and structure of the financial services industry. Yet, adopting innovation and changing entire ecosystems is not something that the notoriously cautious financial industry and affiliated regulation committees are famed for.

Because this technology has the potential to reduce the role banks play in the lives of individuals, it is understandable why financial institutions are skeptical. However, these developments cannot be written off just yet.

They could save consumers and the financial industry billions of dollars while also removing their reliance on middlemen to offer a speedier, modern, and more efficient banking experience.

“You should be taking this technology as seriously as you should have been taking the development of the internet in the 1990s.

It’s analogous to email for money.”

The ultimate goal is to move payments globally much faster while simultaneously becoming more transparent and lowering costs. We will likely begin to witness early adopters making waves in the private market before the ever-cautious big players speak of standardization and implementation. However, there are already a few of them dipping their toes into the water.

According to PwC, there are already over three hundred technology startups developing ideas that will allow blockchain to revolutionize the financial industry.

Big players like Visa and Nasdaq are already investing heavily into a blockchain startup, and there are also plans to modernize the London Market. Lloyds is looking to blockchain technology to improve its data access and reduce costs associated with administrative paperwork.

There are daily stories of heavyweights within the financial industry becoming increasingly eager to capture the tamper-proof benefits offered by a future web-based cryptocurrency. Technology leaders such as Microsoft also have thrown their hats into the ring to demonstrate the possibilities that blockchain technology can offer.

There is exciting potential to completely revolutionize the way in which the finance industry works. But in its infancy, many will continue to exercise great caution before rushing into a shiny electronic cash system that is fully peer-to-peer.

The future of cash and the days of pockets full of loose change are indeed looking numbered, as many wonder if in just a few years we will be looking back at our quaint, primitive payment methods in the same way many do with physical media now.

Cryptocurrencies that thrive in a transparent environment might seem like a foreign concept today, but the rise of blockchain technology is one Hard Trend - a projection based on measurable, tangible, and fully predictable facts, events, or objects - that will quickly prove to be impossible to ignore.

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 technologydriven 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 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 the program.

Blockchain Fundamentals for Accounting & Finance Professionals Certificate LIVE at the COCPA • July 31 - Aug. 1, 2019

cocpa.org /AICPA-blockchain

July/August 2019 | www.cocpa.org

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WORKPLACE STRATEGIES

How to Work With Someone You Dislike This article first appeared in Financial Management magazine. For more articles, sign up for the daily CGMA Advantage email at http://bit.ly/2svn2AY.

BY RHYMER RIGBY

It’s impossible to get along with everyone. Here are 9 steps to make the best of tense work relationships.

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olleagues are a bit like your family. You don’t get to choose them, but you have to spend a lot of time with them. So what do you do about a co-worker you really don’t like? Can you change the relationship or find ways of coping? How do you make the best of the situation?

1. You need to deal with the problem. If you don’t, it will only get worse and may build up until it becomes a far bigger issue than it should be. But here’s the good part: Dealing with the problem might involve nothing more than saying to yourself, “Claire annoys me and she’s difficult, but I’ve looked at the options, and the best choice is simply to let it wash over me.” This may seem the same as ignoring it, but it’s not. You have taken control and made a conscious decision.

2. Tell yourself that it’s not that bad. We are never going to get on with everyone, nor should we expect to. Claire, in this example, will never be a good friend, but she needn’t be a mortal enemy. Worrying about her behavior is really rather ridiculous — and there are far worse things. Perhaps you can make a game of it and turn making her tolerable into a personal challenge. The last suggestion may sound childish, but it can be surprisingly effective and satisfying.

3. Sometimes all you need to do is talk to the person. You should go in gently here — because the individual may not realize that his or her behavior has a negative impact on you. Indeed, in many situations, even if the other person is oblivious, a quiet word is all it takes.

4. Don’t embarrass the person. You can get your message across without letting the entire office know. The bad way to bring up someone’s faults is to say in front of several other people, “Jeff, the tuna sandwiches you eat at your desk make the whole office stink and make me feel sick. You need to stop doing it now.” Instead, you might ask Jeff for a chat when nobody else is around. You would then say, “I hate to do this, Jeff, but I really struggle with the smell of tuna sandwiches. Is there any chance you could eat them in the cafeteria or the break space? You’d really be doing me a huge favor.” In the first situation, you accuse Jeff of being the problem. In the second, it’s about how you feel. In the first, you embarrass Jeff in front of other people.

In the second, you are discreet. In the first, you give Jeff an order. In the second, you appeal to him for help and offer a solution.

5. Learn from others’ coping strategies. Perhaps Michael, who sits next to you, has found a way of dealing with Pam that enables him to accept her behavior and actually get on with her. Whenever you bring up the subject of a difficult colleague, you should be careful. The person you are talking to may be good friends with the individual you dislike. So again, make it about you: “I’m struggling to deal with Pam’s requests and was wondering if you had any advice.”

6. Differentiate between the person and the behavior. This will help you not to fixate on hating the person. You may even get to a stage where you think, “Jim is very loud on the phone because he has adopted a big, outgoing persona to hide his insecurities.” Do this well, and you could even find yourself feeling empathy for him.

7. If all else fails, minimize your exposure. Make your interactions as transactional as possible. Deal with them in a work sense and not a personal sense. Do a good job, be polite, and leave it at that.

Communicate by email where possible, but keep it professional, not passive-aggressive. Ask your boss not to put you on tasks together if at all possible.

8. Make sure the conflict doesn’t affect work. This advice assumes that you have only a personality conflict with the individual or minor objections to behaviors. If someone is damaging your work or reputation or undermining you, then it is a very different matter and you may need to document the behavior and involve your boss or HR. 9. And if the person ruins your every working day? In this case, you will have to move, either to a new department or a new organization.

Obviously, this is not ideal. But it is preferable to hating every minute of work. Moreover, if one person can make you that miserable in your job, chances are there are other things wrong, too, so moving on may be a good idea.

Rhymer Rigby is an FM magazine contributor and author of The Careerist: Over 100 Ways to Get Ahead at Work. To comment on this article or to suggest an idea for another article, contact Neil Amato, an FM magazine senior editor, at Neil.Amato@aicpa-cima.com.

© 2018 Association of International Certified Professional Accountants. All rights reserved.

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YOU ARE A CHANGE AGENT

T H E C O C PA

LEADERSHIP SERIES SKILLS with Anna Conrad, JD

Enhance your leadership skills with this 17-hour CPE series!

Attendees must register for all courses in the series.

AUGUST 26 • COCPA

Insights into Team and Leadership Effectiveness SEPTEMBER 19 • COCPA

Resiliency and Courageous Conversations OCTOBER 18 • COCPA

Leading Change

NOVEMBER 13 • WEBCAST

Leadership Essentials: Delegation and One on Ones (Webcast)

DECEMBER 13 • COCPA

Inspiring and Motivating Others

REGISTER AT

COCPA

COLORADO SOCIETY OF CPAS

MEMBER: $795 NON-MEMBER: $1,135

COCPA.org/LeadershipSkills

July/August 2019 | www.cocpa.org

27

MOVERS & SHAKERS MARILYN SUDBECK, CPA Avalara named Marilyn Sudbeck, CPA, to its six-member national sales tax advisory council.

As a thank you for her service, Avalara will provide a discount for clients which choose Avalara to manage their sales tax. Contact Sudbeck, Marilyn@nimbusqb.com, for details.

CHRISTOPHER L. WEST, CPA Dalby, Wendland & Co., P.C. announced the election of Christopher L. West, CPA, as the firm’s Chief Executive Officer (CEO), effective July 1, 2019.

STAYNER BATES P.C. & BKD LLP Salt Lake City-based Stayner Bates P.C. joined BKD LLP, effective June 1, 2019.

IN MEMORIAM We extend our sympathy to the families and friends of the following COCPA members: Vickie De Barone Member since 1997, Lone Tree, Colorado William Carey Member since 1988, Denver, Colorado Patricia Gordon Member since 1977, Denver, Colorado Alan Grothe Member since 1967, Marietta, Georgia Tommy Carla Harrison Member since 1983, Englewood, Colorado Nathaniel C. Harvey Member since 1963, Phoenix, Arizona

STATE BOARD AUDITS CPE COMPLIANCE In fall 2018, the Colorado State Board of Accountancy randomly audited Colorado CPAs for the 2016-2017 CPE reporting period and found the following common deficiencies: • • •

CPE was not completed by the December 31, 2017, deadline.

The four-hour ethics requirement was not completed.

CPE courses did not meet the NASBA/AICPA standards.

If audited, you must provide all documentation and information requested to the State Board within 30 days.

If you have questions about the CPE requirement, email or call Rebecca Campbell, CAE, COCPA CPE Director, rebecca@cocpa.org or 303-741-8618.

28

NewsAccount | July/August 2019

CLASSIFIEDS OPPORTUNITIES AVAILABLE Southeast Denver Accounting Firm has a wonderful opportunity for a full or part time (possibly full time during tax season) professional with a minimum of five years experience in public accounting with an emphasis in taxation. CPA and MS Tax are preferred but not required.

Responsibilities primarily include tax preparation of individual and business returns. Also will include tax consultation, research and development of solutions to tax issues, and direct contact with clients to discuss and resolve tax-related matters. Knowledge of general ledger accounting, including the ability to reconcile bank accounts, analyze activity, and prepare working trial balances with adjusting entries is essential. In addition, please have a firm proficiency with spreadsheet, word processing, and tax preparation software. Our firm uses Word, Excel, and CCH ProFx. Salary will be commensurate with experience. We look forward to hearing from you and appreciate your time and consideration for a wonderful position with a great firm. Please email your inquiries to carley@cocpa.org (Box #10417).

PRACTICES FOR SALE, PURCHASE, OR MERGER Selling your firm is complex! ACCOUNTING BIZ BROKERS can help!

We have been selling CPA firms for over 14 years, and we know how to simplify the process. We have a large database of active buyers.

We work with industry specific lenders ready to assist buyers with financing. Contact us today to receive a free market analysis or to start the sales process. Current Listings: Central Mountains CPA Firm Gross $123k (New); Loveland Gross $300k; Larimer County Gross $395k; Pagosa Springs Gross $230k (SOLD). Kathy Brents, CPA CBI at 866-260-2793 or Kathy@AccountingBizBrokers.com, or visit our website at www.AccountingBizBrokers.com.

CPA Firms or Partners. We represent a number of quality CPA firms and sole practitioners who are looking to merge, acquire, or sell their practices to other CPA firms. 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.

CPA Practices for Sale. Denver Area practice for sale generating annual revenue of 563k. Over 60% of firm revenue is recurring monthly accounting service revenue. Tax work is associated with business and their owners. Experienced staff in place.

Denver Area practice for sale generating annual revenue of $1.4 million. This is a high end tax practice with no audits or reviews.

Experienced staff. Owner will, of course, execute a non-compete and help with the transition of the firm.

For more information on either firm and to view our current list of practices for sale, please visit www.newclientsinc.com.

TO ADVERTISE IN NEWSACCOUNT Go to cocpa.org/advertise to review the details and download the media kit. For more information, contact Carley Cave, carley@cocpa.org.

TAX STUDY GROUPS

GUIDING THE BUSINESSES OF A GROWING INDUSTRY

Boulder/Longmont Tax Study Group AT THE MEADOWS BRANCH PUBLIC LIBRARY

Tuesday, July 16 and Thursday, August 22 This informal roundtable discussion group meets at the Meadows Branch Public Library, 4800 Baseline Rd., Boulder, BYO Bag Lunch. Additional 2019 Meeting Dates: Sep. 19, Oct. 17, Nov. 21, and Dec. 19. For additional information, contact Lynn M. Mitton, CPA, MT, MPA, 303-499-7445, or email lynn@flewellingcpa.com.

AUGUST 15, 2019 COCPA EDUCATION CENTER OR WEBCAST CPE: 8.0

Denver Tax Study Group AT THE COCPA OFFICE

Tuesday, July 30 and Tuesday, August 27

REGISTER TODAY AT

cocpa.org/MBS

This informal roundtable discussion group meets over lunch, the last Tuesday of most months, at the COCPA office, 7887 E. Belleview Ave., Ste. 200, Englewood. Additional 2019 Meeting Dates: Sep. 24, Oct. 22, and Dec. 3. Register at www.cocpa.org.

Careers At ACM, we work hard, play hard, and greet each day with optimism. This commitment is shared by each and every member of our firm – and it’s why we’ve been consistently recognized as one of the best accounting firms to work for in Colorado and across the nation.

“ACM is a family. It’s an amazing group of people who bring their best to the table each and every day.”

- melissa k. hooley, partner-in-charge, employee benefit plan services

August 21-22, 2019 Denver | CPE: 16.0

“ACM encourages each employee to take on new challenges and grow professionally – all while being able to maintain a quality family life.

-

The Technology Conference is an annual two-day event to help CPAs better leverage technology in their organizations.

Discover the trends in hardware and software that are determining the future, and learn about the emerging best practices in tech strategy. Special emphasis is provided on data security and the shift toward cloud computing and mobile devices.

COCPA.org/TechConf

dennis tschacher, partner

“I love working at ACM because we’re given opportunity for personal and professional growth.

You can pick your own path and your own pace.”

-

tim stueven, audit director

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

July/August 2019 | www.cocpa.org

29

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

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