News from Your Accounting Association
CPAmerica Advantage Blockchain in accounting - making the connection with the future. Allan Koltin, CEO at Koltin Consulting Group, Inc., predicted that in 10 years, the CPA audit of the future would have “transactions audited at inception with blockchain technology.” Among the reasons to read about blockchain is that it is a view into the future of the accounting profession. Blockchain represents a fundamental
change in accounting. Why? Because blockchain deals with the foundation of the profession, the ledger which is used to produce income statements and balance sheets. The ledger is the backbone of business because it is the method of tracking financial transactions. As clients’ businesses become global, the need for real-time and secure accounting between parties will put a premium on processes that facilitate efficiency in this area.
August 2017 Tech Corner with Randy Johnston P. 2
A bit on blockchain Member News P. 3 ‘Blockchain’ is simply an encrypted ledger that is distributed among all comput- President's Corner - Alan Deichler P. 4 ers (or nodes) in a participating network. The data that makes up a particular trans action is called a ‘block’ and is made up two parts: the first, its header, contains a block CPAmerica's 6th Annual identification number (an encrypted hash), International Group Meeting is a time stamp, and a link back to the precedopen for registration! ing block in the chain; the second part of the The world is calling! “Going chain is made up of information pertinent to global” is not just trendy jargon the transaction (e.g., financial, identification anymore. Most businesses today will encounter a need for of parties involved). This electronic ledger’s international expertise and go to blocks are linked together from the starting their CPA advisor first for help. block to the most recent one, making up what Join peers from CPAmerica and is known as the blockchain. Crowe Horwath International member firms in Atlanta, Ga., The blockchain functions by utilizing its this Nov. 28-30 to gain the nodes to validate the contents of each block in information you need to help the chain and thus confirm that each node’s you provide solutions for your clients with international needs. version of the ledger is the same. New transactions receive a unique hash and are added to the To register or for more info, go to: existing chain. A blockchain database contains https://tinyurl.com/yafwqq7b the records for each transaction in the chain. What’s it worth? Don Tapscott, CEO of The Tapscott Group Inc., said that blockchain “is a vast, global distributed ledger or database … where not
See Blockchain, continued on page 2
Tech Corner with Randy Johnston
Social Media - An Engagement and Marketing Strategy (part two of last month's article) Social media should be one of the many channels you use to engage current and potential clients. We suggest that you use your website, email campaigns, mailing, and other branding activities in conjunction with the primary social media tools. But before you invest time and effort, consider your vision or why you care about social media. In this article, we’ll spend time crafting a strategy, provide an overview of the major media including: blogs, Facebook, Pinterest, Instagram, Twitter, YouTube, and LinkedIn. We’ll also discuss metrics, tools needed, and some useful reference materials. When engaging and starting your marketing strategy, ask yourself, "Who do you want to reach?" This can include:
• Existing clients • Prospective clients or new geographic market contacts • Clients who need help • Generations: Boomers, Gen Xers, Gen Yers, Millennials • The media • Potential recruits • Vendors • Thought leaders Once you decide your target audience, choose how will you communicate: • Face-to-face (e.g., service organization) • E-mail (email@example.com) • Twitter (@RPJohnston) • Pinterest (pinterest.com/RPJohnston)
• Facebook (www.facebook.com/RPJohnston) • LinkedIn • Blogs (CPATechBlog.com) • Print media • Yelp • Instant messaging/chat • Snail mail What do you want others to buy or know about you? Is it your: • Area(s) of expertise? • Special competencies or product offerings? • Practice areas where you make a lot of money? • Things you have in common? Buyer education. Ask yourself:
See Social Media, continued on page 2
Blockchain, continued from front just information but anything of value - money, but also titles, deeds, identities, even votes - can be moved, stored and managed securely and privately. Trust is established through mass collaboration and clever code rather than by powerful intermediaries like governments and banks.” The value of the blockchain for the accounting profession comprises three main factors: real-time financial reporting; encrypted data; and reduced business costs. These aspects of blockchain are what may revolutionize worldwide accounting procedures. Real-time reporting With the increased use of the Cloud, blockchain processes have the potential to decrease audit process times down from days to minutes. Also, because it is decentralized and maintained by the nodes of a particular network, transactions can be processed at any time or any place. This means that because there is a single central ledger which is constantly updated, there is no need for it having to be reviewed by a third party. Secure Melanie Swan, author of Blockchain: Blueprint for a New Economy, said that “blockchains have arisen as a crucial enabling technology to allow the secure transfer of value, and thus for economics and finance to uplift into the modern Internet era.” Blockchain may serve to upgrade the current doubleentry method of accounting to a more secure triple-entry accounting system. The addition of encryption to account ing transactions through the blockchain help ensure that the blocks haven’t been tampered with and provide an up-to-date and verified version to those on the network. Vulnerability to malicious attacks is greatly minimized due to the fact that all computers on the network would have to be taken over. Reduced business costs An example of how blockchain could potentially reduce auditing costs is by decreasing the amount of resources a firm puts into assuring the trustworthiness of financial transactions. The intrinsic encrypted security of the blockchain along with real-time reporting of transactions mean that firms can reduce the amount of manpower previously tasked with this work. The advantages that blockchain can offer the accounting profession by streamlining processes and increasing transaction security ensure that this will be the next phase in the way business gets done.
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Social Media, from page 1 • You’ve done this before, right? (references, systems, methodology) • Are the proper systems and procedures in place? • Do you communicate the terms & conditions fairly? • Are you pushing a product nobody wants? • Do you have the staffing, should you outsource, or should you not do this? Do you have the staffing to do this right? • Who is responsible? • Who will help them? • Who will pay for their time doing this? • How will you compensate them for success or failure? • Who will be “on call” to monitor SM at night and on the weekends? • Who should be the boss of the person who gets this job? Should you outsource? • Lack of internal competency? • Does your marketing firm know what they are doing? • Who is doing great in this area right now? • How will you measure success? What are the major tools and what will it take to be able to use them? Blog: An essential business tool for anyone with a message to communicate with an audience. If you have something to say, you need a blog. Can be used to keep website content fresh and it can be integrated with other social media (e.g., Twitter) to be the “what’s new” portal for an organization. Facebook: Everyone is here, so you need a strategy. Benefits: Interaction through likes, emoji, and messenger is easy and seamless. Problems: Advertising here is expensive; chat, posts are NOT confidential; others can mine your friend lists. Pinterest: Great for prospective buyer education and viral marketing through your network. You can get ideas from others, modify/rewrite, put up your logo/ contact info on the infographic and broadcast through all channels. Instagram: Here, happy buyers can talk about the firm and their accountant to their friends, share infographics, and share photos so that you are a “real person” to prospective buyers. Twitter: Twitter is important because it’s a short blog for those who hate to write. It is ideal for sharing links and quick status updates. Tweets are sent and received via cell phones. YouTube: On YouTube, you create videos that show people more info about your services. When posting, try to be factual and not too “salesy" – HAVE FUN! Advantages of posting here include: ease of use (you can post from your own smart phone); it's a nice way to show off your expertise; and posts can be cross-posted on social sites. LinkedIn: Groups are where the action is on LinkedIn. There are two types of groups: Open Groups, which can interact with Twitter and Facebook (can be indexed by search engines), and Private Groups, which can be made private, but can’t be connected to Twitter, Facebook, or be indexed. Content in groups can be moderated so that the group owner/sponsor can keep discussion to on point messages and edit the content. Crafting a Strategy: Measurement What is not measured cannot be managed. Many businesses dabble in social media without having the desired outcome. Remember that your effectiveness will be reduced if social media is your only marketing methodology.
on August 10, from 2-4 p.m. ET. “Tips for Implementing Topic 606 and Other Recent A&A Updates" will focus on recent activity by the various standards setting bodies, such as the AICPA and the FASB. The session will then discuss the implementation status of Topic 606 and common implementation challenges which companies face in implementing the new standard.
FOR MORE DETAILS, GO TO: www.cpamerica.org > under the News and Events tab, select Upcoming Events > Webinars
Tools to measure social media engagement include: • Google Analytics • E-mail Marketing (Constant Contact, Mailchimp, others) • Social Media Analytics (Klout) • Percentage of prospects that turn into leads? • Percentage of leads that convert to sale? • How many followers, fans, likes, retweets? • Where are you getting social traction? Is it where you want to get traction?
Member News Gollob Morgan Peddy annouces new managing partner
, with headquarters in Tyler, Texas, announced that Robert Shane Rohrbach, senior partner, has been elected as the new president/managing partner of the firm. He succeeds Tony Morgan, founding partner of the firm. Morgan has served as managing partner for more than 18 years. He will remain with the firm as a SHANE ROHRBACH vice president and senior partner. Under Morgan’s leadership, the firm has grown to more than 80 employees. Specializing in business valuation and litigation support, Morgan continues to work with entities throughout the area. He serves in various organizations including the East Texas Communities Foundation, Salvation Army, East Texas Woods and Waters Foundation, and on the Southside Bank board of directors. Rohrbach joined the firm out of college in 1997 and became a partner in 2012. He practices a full range of tax planning, reporting and compliance services for individuals, partnerships, corporations, trusts gifts and estate tax. Rohrbach serves in various organizations including the East Texas chapter of the TSCPA and is a graduate of Leadership Tyler. He is also president-elect of the East Texas Estate Planning Council.
Sol Schwartz & Associates, P.C.'s Machado named Young CPA of the Year, Higginbotham graduates from RECSA leadership program
The Texas Society of Certified Public Accountants (TSCPA) recently honored Arturo Machado with the organization’s Young CPA of the Year Award. The award recognizes a CPA under the age of 40 for their contributions to the accounting profession and the community. Machado is a shareholder at San Antonio, Texas-based He received his CPA license in 2007 and joined TSCPA in 2008, where he currently serves as the San Antonio Chapter’s 2017-2018 president-elect. In 2015, he was awarded the Young CPA of the Year award from the San Antonio Chapter of CPAs. In addition to his TSCPA volunteer service, Machado is also involved with the Free Trade Alliance Mexico Group and the Asociacion de Empresarios Mexicanos. Sol Schwartz & Associates, P.C. also announced that David Higginbotham, CPA, graduated from 2016-2017 Real
Estate Council Leadership Program. The Real Estate Council of San Antonio plans and implements RECSA's Leadership Development Program for up to 25 high-potential real estate industry applicants under the age of 40.
Honkamp Krueger and HKFS earn three awards from the Corridor Business Journal
In an annual survey of readers, the Corridor Business Journal has named (HK), as the Best Accounting Firm and Best Business Consulting Firm, and HK’s wealth management affiliate, HK (HKFS), has been named Best Investment Services Firm in Iowa’s Creative Corridor. This is the third year in a row HK has been named Best Accounting Firm. Kyle Kunz, CPA, CITP, partner-incharge of the Cedar Rapids branch said, “It is a great honor to have been voted Best Accounting Firm, Best Business Consulting Firm and Best Investment Services Firm.”
Cowan, Gunteski & Co., P.A.’s Bagdzinski honored by Girl Scouts of the Jersey Shore
Danielle Bagdzinski, marketing coordinator at Toms River, N.J.-based member firm, P.A., will be recognized as a Phenomenal Woman Under 40 by the Girl Scouts of the Jersey Shore at a special event in Seaside Heights, NJ. This award recognizes 10 exceptional women who go above and beyond in business growth, professional excellence, and community service. Bagdzinski manages all digital and print marketing, social media, advertising, events, editorial content, website maintenance and branding for the firm. She graduated from Seton Hall University, earning a master's in strategic communication; Bagdzinski also received a bachelor's in English from the University of Minnesota.
Gillis Elected board member of United Way of Greater Greensboro
, one of the Triad’s largest CPA and accounting firms, announced that Michael Gillis, CPA/PFS, managing partner, has been elected as a member of United Way of Greater Greensboro Board of Directors. The board provides direction, support, guidance, and governance to the organization. Gillis helps DMJ's privately-held businesses and owners achieve their long-term financial goals with proactive
planning. He is a frequent presenter on tax matters and works extensively in the area of succession and exit planning strategies for businesses. He attended Thiel College in Pennsylvania and graduated with a bachelor's in accounting and business administration and became a CPA in 1984. He joined DMJ as a tax manager in 1987 and became a partner in 1991. Gillis was also a prior member of the CPAmerica International board of directors, serving as chairman.
Thompson Greenspon earns Inavero's 2017 Best of Accounting Award for client service excellence
CPAmerica member firm , based in Fairfax, Va., announced that they have won Inavero’s Best of Accounting™ Award for providing superior service to their clients. The Best of Accounting Award winners have proven to be industry leaders in service quality based completely on the ratings given to them by their clients. On average, clients of the winners are more than four times more likely to be satisfied than the industry’s average for accounting firm clients.
Partner at MHC&S appointed to Iowa Accountancy Examining Board Jim Smith, CPA, CGMA, partner at
, was appointed to the Iowa Accountancy Examining Board by Governor Terry Branstad. Smith said, “I am pleased to be appointed to the board and look forward to serving the accounting profession in Iowa for the JIM SMITH next three years.” Smith will be celebrating 30 years with MHC&S this year, after joining the firm’s Winterset office as a partner and shareholder in 1987. During his time with the firm, Smith has been heavily involved both in the accounting profession and the community. He currently holds memberships in the AICPA and ISCPA; he is a past president of the ISCPA and remains an involved committee member.
President's Corner: “I’m a Competitive Person.”
A LAN D EICHLER P RESI D ENT
When was the last time you heard someone say, “I am a very competitive person”? For me, I heard it the other day for the first time in a long time and it made me start wondering why I haven’t heard it as often as I used to.
A quick story on competition. I was last man on a southern university golf team. We played a big-time schedule and on our tee, it was very competitive to make each tournament. The fourth man’s girlfriend was arranging blind dates for a sorority sister who had just left a long-term relationship. I was on the agenda. It was arranged that we would double date with my golf teammate and his girlfriend. My date giggled through the mystery movie and I was starting to look at my watch and wonder how long this date was going to last. After the movie, we agreed to go play putt-putt golf. Miniature golf (or putt-putt) is a short putting-only golf course that is as much for entertainment as for competition. It’s often a silly layout with windmills and clown faces. But it was going to be me and my date versus my fellow golf teammate and his date. It was on! I figured this date would continue to be less than wonderful. She laughed and giggled through a Clint Eastwood mystery movie - how much help would she be in trying to beat my teammate? Just a bit of background, you need to know that lowerranked team members had to qualify to try and make the traveling squad for tournaments. My teammate and I were often head-to-head in that competition. We both normally made the traveling team, but
the competition was intense. This putt-putt event would be contested as if it was for the “world championship.” Quick cut to the finish, my two children owe their being to the competitiveness of their mother in that match. We beat them thanks to my date’s (and my future wife’s) competitive spirit. There was no giggling and she was determined to win. Obviously, we went out the next weekend and subsequent weekends. Whether you like the word competition, or you call it “being the best you can be,” or “striving for excellence,” we as a country, firm, business people and even in our personal lives, must strive to do our best. We seem to want the related goals of international influence, healthy firms, various kinds of careers, and meeting personal goals, such as family time and support, vacations, and nice places to live. All of these are dependent on meeting our goals, which in turn depends on striving to do our best.
exploring the possibilities of being small business owners and creating plans to be attractive to the partners for future election as owners of the firm. To meet our personal and business objectives, I suspect those with the most success in reaching these goals will be those that have a competitive spirit. Competitive people are able to draw on concentration, creativity, and resilience in order to achieve their objectives – being a competitive person may just give you the most effective way to meet your goals.
Not everyone needs to win the top prize or be “number one.” However, we live in a society that rewards people for accomplishments. Attaining accomplishments and winning comes from preparation, hard work, and determination. Of course, we need to balance the competitive spirit with appreciating life and the wonder around us, as well as competing in a proper and ethical manner within the rules, but our goals and aspirations will not come from hope. It has been a pleasure to meet so many people during my VIP visits, both those at the beginning of their careers and those reaching the end of their careers. Many of those at the beginning of their careers are
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Join CPAmerica for our Webinar: International Business and Tax Ramifications Webinar on August 9, from 2-4 p.m. ET. The International Business and Tax Ramifications of Exporting webinar session will take a global view of exporting and how various countries are encouraging export activity through tax and other incentives.
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Published on Aug 1, 2017
This is the August 2017 Advantage newsletter. Topics include: Blockchain, Part 2 of Randy Johnston's Tech Corner, Member News, President's C...