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News from Your Accounting Association

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Expansion and development of profitable service lines such as Client Accounting Services (CAS) are increasingly attractive to accounting firms as more processes become automated. We recently spoke to John Pace, CPA, CVA, and Outsourced Accounting and Advisory Services partner of member firm (GRF), and Ray Barlow, senior vice president of XCM Solutions (who will be speaking at the CPAmerica Client Accounting Services/Outsourced Accounting Meeting in New Orleans this November), about CAS. We started by asking Pace about some of the more popular CAS that GRF offers to clients. He talked about the trend of outsourcing the entire accounting needs of a perspective client. Pace said, “We call that being their virtual accounting department. That means they have elected to not have any real accounting staff on board and they have made a decision (much like with outsourcing payroll or IT services) that with accounting, they can do the same thing. That’s one popular service that we provide.” He went on to say that another version of CAS that his firm provides is a sort of hybrid model where clients have some accounting staff performing basic services. Pace said that in this case, “They like to use our services to act as their controller on a regular basis. In this way, they are keeping their day-to-day costs down in regards to internal accounting and picking their spots to use a CPA firm, such as GRF, that has experience in their industry in order to provide

specialized, targeted services. Member News P. 3 Typically, the client may be the one doing the bulk of the transacA&A Remarks with Art Winstead P. 4 tion processing. In this situation, we are not cutting checks or processing payroll, but someone on the client side has done that. We step in and spend some time either reconciling or reviewing major accounts and potentially generate reports for the client or have discussions with their management team. The nature of all this is fairly customizable. Some [clients] are more self-sufficient than others.” Regarding trends and growth in the type of CAS services offered, Pace said, “We still get a lot of requests for both types of services. Whether it is a partial outsourcing or a full outsourcing, we still see a lot of both. I think the industry trends are leaning towards an emergence of more virtual total outsourcing of the accounting department. We think that is one of the trends and we are trying to position ourselves to be in a good place to handle that.”

CPAmerica's newsletter: This month we go back to June 2005. This issue of the Brainstorming newsletter shows the old CPAmerica logo and talks about the upcoming CPAmerica public "web site."

There are various reasons why clients are outsourcing their accounting services. Pace said, “The client makes the decision that they don’t have See Client Accounting Services continued on page 2

An article on rainmakers in your firm: Rain comes in many forms One of the common misconceptions we encounter in our work in the CPA profession is the idea that all partners must be real rainmakers. Many managing partners, directors of marketing and line partners lament the lack of true business development they see from their partners, lumping them all together and expecting something more than they are getting. Further, up-and-comers are often told that they have to be rainmakers to make it to partner. Unfortunately, the upand-comers look at the current partner ranks and see a disconnect between this stated

expectation and the business development acumen of the incumbent partners. In this article, we explore realistic expectations for rainmaking and identify different forms of rainmaking roles we see within firms. We believe that job expectations should be “one-size-fits-one,” which means that any expectation that is applied universally to an entire group will usually go unfulfilled. The sooner we can accept that each of our partners and team members have unique talents and abilities (as well as their own special

See Rainmaker, continued on page 2

CELEBRATING:

Rainmaker, continued from page 1

deficiencies), the sooner we can begin tailoring expectations, playing to our people’s strengths and defining roles and goals that allow people (and the firm) to win. There may be no place more important to apply the idea of one-size-fits-one than to rainmaking - sometimes called business development, personal marketing or selling. It is the art of identifying someone with a need the firm can fulfill, matching a firm service to that need, and as a result, enabling the firm to gain an engagement. As we teach in our Rainmaker Development Program® (RDP), rainmaking takes many forms within firms including these four roles, presented in order of from most plentiful to most rare: • The Supporter – This person assists with opportunities generated by someone else. They support sales activities, including following up and qualifying opportunities; helping to scope, size and propose engagements; and ultimately learning to close opportunities on their own. They support the firm in developing its network by attending networking functions and engaging in social networking to build their connection base to those inside and outside the firm. This person is often learning business development and is not able to generate new business without the support of the Sourcer (see below). It is usually most difficult to measure the results produced by the efforts of the Supporter. • The Server – This person focuses on delivering services and adding value to existing clients. They develop business by developing relationships with existing clients and uncovering new opportunities to serve them. Servers grow their client base without adding any new clients. Sometimes, effective servers also close new business by adding new clients referred to them by existing clients. You can measure the rainmaking results of the Server by ...

This is part one of two of the rainmaker article from ConvergenceCoaching, to be continued in the July 2018 Advantage newsletter.

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Client Accounting Services, continued from front page the capability on staff or they don’t want to be bothered with it, so they come to us because we have experience in their industries or because of our reputation. Another thing is they don’t have to manage us as much as they would an internal person. They don’t have to worry about salary and benefits.” GRF has provided these services for quite a while and we asked Pace how this niche has benefited the firm. He said, “Outsourced accounting has evolved over the past 20 years and even over the past five years … especially with technology and new tools, it has evolved more than [ever]. It has always been a part of our firm and has allowed us to be what we JOHN PACE, CPA, consider a full-service firm. It started when CVA, OF GELMAN, our auditors or tax people needed help with ROSENBERG & day-to-day accounting – we stepped into FREEDMAN CPAS those roles and started helping clients get their books together. It evolved into a more value-added service for our clients. Technology and expertise have really helped change the narrative in this practice. Outsourced accounting practices have helped our firm by increasing our revenue stream - it’s a fast-growth area. Our goal is to continue to push growth in this area.” Some firms are established in providing these services but others would like to grow this niche. Ray Barlow commented that “CAS is the fastest growing line of business for CPA firms today. Many firms are engaged and finding significant revenue opportunities with CAS. However, many firms are struggling getting started. Staffing is difficult, if not impossible in today’s work envi ronment and existing staff are desktop (Quickbooks) experts and [are sometimes reluctant] to learn anything new. Many firms are looking to learn how to deploy CAS, which skill sets are needed, and how to position themselves in the marketplace.” As CAS has evolved, the tools have too. What are some examples of software recommended for CAS? Barlow points to Quickbooks Online, Xero and Sage Intaact as three popular accounting systems. “Bill.com, T-Sheets, Expensify, Hubdoc and Receipt Bank are ecosystem products developed through integration into accounting systems,” said Barlow. Barlow spoke about the upcoming meeting. “Client Accounting Services has come into its own. What once was a commodity that most accounting firms ran from has evolved into a promising service line with solid value for clients and strong upside potential for accounting firms. My presentation will take you through the strategy needed to build or grow this practice in your firm.” The half-day Client Accounting Services/Outsourced Accounting Meeting in November was designed for individuals who are working to develop or grow these services in their firm. This meeting will provide professionals the opportunity to gain insight from experts in this field as well as peers with shared experience. For more information about the conference, contact Lisa Browne at: lbrowne@cpamerica.org or visit www.cpamerica.org and look under Events.

CELEBRATING:

Member News Faison receives VSCPA Top 5 Under 35 Award

,a central Virginia-based public accounting firm, announced that the Virginia Society of CPAs (VSCPA) awarded Carman Faison, CPA, as a Top 5 Under 35 award honoree. This award is presented to five CPA young professionals in Virginia under the age of 35 who have demonstrated notable professional achievements, community involvement and dedication to the CPA profession. “The firm is very proud of Carman’s achievement and her contribution to the industry and our clients,” says E. Jeffreys Love, CPA, MBA, managing partner of Mitchell Wiggins & Company LLP. Faison is a senior manager that joined the firm after working in the commercial finance arena. She specializes in working with closely held businesses, including auto dealerships. She also provides attest, consulting and tax services and works on financial institutions and nonprofits. She serves on the firm’s Dealership, Tax, and Accounting & Auditing Teams.

DMJ adds new consultant to Lead Strategic Finance and Outsourced Accounting Division

Greensboro, N.C.-based PLLC (DMJ), a Top 300 North Carolina CPA and accounting firm, announced that Scott Wells, CPA, joined the firm as a consultant to lead DMJ’s Strategic Finance and Outsourced Accounting Division, where he will work with industry financial professionals and their owners. As an accounting and business professional, Wells has more than 20 years of experience in guiding management accounting, finance, and processes. He also has significant experience with internal management reporting, compliance, and restructuring through mergers or growth. DMJ’s Strategic Finance and Outsourced Accounting Division is a specialized consulting service effectively serving a range of industry areas. Strategic finance and outsourced accounting engagements may also provide consultative controllership/ CFO services, both interim and ongoing; strategic planning and budgeting; audit preparation and readiness; among other services. These services allow business owners or financial professionals to focus on long-term goals or more efficient business needs. Wells earned a bachelor's in business administration with a concentration in accounting from the University of North Carolina.

Florida member THF welcomes new hires to the firm and award winner , a professional accounting, assurance, and tax services firm headquartered in Tallahassee,Fla., welcomed Amy Ranieri, Katrina Cromwell, and Brian Detwiler to the firm. Ranieri received her bachelor’s in accounting from West Chester University and her master’s in accounting from the University of Central Florida. She will be working as a senior accountant in the Assurance Services Department in the Tampa office. Ranieri is a Certified Insurance Counselor (CIC). Cromwell received her bachelor’s and her master’s in accounting from the University of South Florida. She will be working as a staff accountant in the Assurance Services Department of the Tallahassee office. She is a CPA and a member of the American Institute of Certified Public Accountants (AICPA). Detwiler received his bachelor’s in finance from the University of South Florida and his master’s in accounting from Keller Graduate School of Management. He will be working in the Tampa office as a staff accountant in the Assurance Services Department. He joins THF with more than six years of experience providing assurance services. Detwiler is also a CPA and a member of the AICPA and all are members of the Florida Institute of Certified Public Accountants. THF also congratulated Stephen Andrews on winning the Tallahassee Network of Young Professionals’ Golden A.C.E. Award. The Golden A.C.E. Awards recognizes the Capital City’s top “20 Under 40” young professionals. A Golden A.C.E. recipient is an emerging young leader in their respective industry and also represents the award’s namesake – to highlight those in the community who believe in Authentic Community Engagement, or A.C.E.

Nail McKinney P A announces promotions, new hire

Member firm , with headquarters in Tupelo, Miss., announced several promotions and welcomed Samantha Weatherford, CPA, to the firm. Joshua “Josh” Hutcheson, CPA, Matthew Oaks, CPA, and Jon Pernell, CPA, have been promoted to manager. Hutcheson, a graduate of Mississippi State University with a master's in taxation, specializes in corporate and partnership tax services. Oaks is a graduate of Mississippi State University with a master's in taxation, specializes

in assurance services, including financial institution, manufacturing and publication areas of practice. Pernell is a graduate of Delta State University with a bachelor's in accountancy. Samantha Weatherford, CPA, recently joined the firm and has more than five years of experience. Weatherford will specialize in corporate, partnership and individual income tax service.

Thompson Greenspon earns Inavero's 2018 Best of Accounting Award for client service excellence

Fairfax, Va.-based member firm , announced that they have won Inavero’s Best of Accounting™ Award for providing superior service for the second year in a row. Best of Accounting Award winners have proven themselves as industry leaders in service quality based entirely on ratings provided by their clients. On average, clients of 2018 Best of Accounting winners are two times more likely to be satisfied than those who work with nonwinning firms. Thompson Greenspon received satisfaction top scores from 83 percent of their clients, significantly higher than the industry’s average of 43 percent in 2018. This resulted in the firm receiving a Net Promoter® Score of 77.4 percent, more than four times the industry’s average of 19 percent. “2018 Best of Accounting award recipients have demonstrated a superior commitment to client satisfaction and service quality,” said Inavero founder and CEO, Eric Gregg.

Cowan, Gunteski & Co., P.A.’s Bagdzinski campaigning to be Leukemia & Lymphoma Society 2018 Woman of the Year

Danielle Bagdzinski, marketing director at leading accounting and profitability consulting firm, is competing in the New Jersey Chapter of the Leukemia & Lymphoma Society’s (LLS) 2018 Man & Woman of the Year fundraising campaign. The LLS Man & Woman of the Year campaign engages influential, compassionate community leaders to help find cures and ensure access to treatments for blood cancer patients, and improve the quality of life for patients and their families. Through this annual ten-week campaign, individuals and their teams can have a maximum impact in the fight to end blood cancers. To date, these dedicated leaders have helped LLS invest more than $1 billion in research to advance breakthrough therapies that are saving lives today.

A&A Remarks: Bill Ezzell and his vision for the accounting profession Our profession recently lost, and a number of us would not consider this an exaggeration, perhaps one of the most influential member of our profession in the last generation. Earlier this year, Bill Ezzell Art Winstead, Director of A&A unexpectedly passed away. I could easily use all of the words allotted to me for this article to write about Ezzell’s professional and personal resume. As a highlight, he was the AICPA chair following the global audit crisis in the early 2000s. He worked hard and finally agreed to the criteria established by the Sarbanes-Oxley Act. I am only at the tip of the iceberg covering what Ezzell did for the profession over his long career. Trust me, everything about his professional activities are incredible and as I learned, his personal life was just as incredible.

Over the years, the AICPA has had a number of initiatives that were related to providing an outlook of the future at that time for both current members and those that would join at a later date. Some of those that joined are still in the pipeline. Without question, there were those of us that shrugged off some, if not all, of these initiatives. We were sent continuous messages regarding the following initiatives:

Despite all of Ezzell’s professional and personal accomplishments, he was just a regular guy that anybody could spend time with and know. While his entire career was with Deloitte and a number of their predecessor firms, he was a CPA first and believed all CPAs had the same authority and were due equal respect. Without further meandering, I do want to share with you one of Ezzell’s many passions that directly affect all of us.

Was there overlap between these initiatives? Yes - and that was not a bad thing! The CPA Vision Project was initiated in the 90s. The Pathways Commission and CPA Horizons 2025 initiatives occurred in 2011-12. In all likelihood, there will be a continuation of any of these three initiatives. And that’s not a bad thing either. Each of them had a consistent theme – namely, how can we improve the profession today and in the future for the next generation of CPAs and accountants?

He had an incredible commitment to the education of accounting majors, both those entering the profession and those teaching and training college students at the undergraduate and the post-graduate levels. He would spend hours talking to the young professionals in any room. Their interests were his interests. How do we best prepare those that are going to succeed us and continue the work, trust and authority of the CPA brand? That was Ezzell’s passion.

These initiatives were intentionally broad and provided us with suggested roadmaps as to what we can do today and in the future to ensure the CPA brand. They provided a path for those that chose to enter the profession before, during or even after undergraduate school (i.e., taking the core accounting hours or perhaps receiving an advanced degree). The path has to be clear for us to see and even clearer for those much younger than many of us today that are still working in

• CPA Vision Project and Beyond – Enable the Profession to Create its Future. • Pathways Commission – Creating a National Strategy of the Next Generation of Accountants. • CPA Horizons 2025 – CPAs and the Accounting Profession Will Mold Their Future. Ezzell was an avid participant and proponent of each of these, particularly the Pathways Commission.

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the profession. This, to me, is extremely important for the entire profession and our future. It is easy to talk about. I believe the execution requirements are and will continue to be challenging as succession happens to many of us in the future. I admit the vast majority of us in the accounting profession and as CPAmerica members embrace these initiatives. As professionals, we discuss them within ou r fi r ms, at conferences and in more informal gatherings. These initiatives support the “old threele g g e d s t o ol” example which has been used to demonstrate our ability to be CPAs. The legs represent: (1) education, (2) experience, and (3) the CPA exam. For the most part, we can provide more emphasis to two of the legs – education and experience - because only a scattering of us spend our time and resources dealing with the exam. That’s probably a good thing. But to me, we can all pitch in with the education and experience portions. That’s what our good friend Bill Ezzell did. Let’s all do it too.

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