09 2017 advantage final

News from Your Accounting Association

CPAmerica Advantage New beginnings for HKP partner Don Kurth It’s been a while in coming, according to Don Kurth, owner and partner of , when talking about his upcoming retirement after 42 years with the firm.

The path to becoming an accountant had a few twists and turns for Kurth. Growing up, he always knew that he wanted to go to college and do something associated with business. He enrolled in the general studies program at Washington State University and afterward served in the military as a fireman. Kurth told us, “Looking back at my DON KURTH classes, I really liked my basic accounting studies and tax classes, so I decided to go back and do that. There was one other rea son why I did it; I was having a terrible time passing the verbal part of my Spanish courses and I didn’t think I was ever going to [pass] that. With the accounting degree, I didn’t have to have a [foreign language requirement].” After Kurth received his degree, he briefly went to work for a bank where he was asked to interview for the tax position in the Trust Department. He really liked his new job and decided to sit for the CPA exam. Kurth said, “I was there for three years and then went to work for Peat Marwick’s (now KPMG) Tax Department for five years, afterwards I left and started from scratch an accounting firm

with another CPA. He was our auditor and I was the tax person. We ended up being successful from day one.”

Kurth is now very appreciative and aware of his firm’s accomplishments. He said, “We also did not know how fortunate we were because most accounting firms have a hard time making it through the first year, and most don’t make it past their first five years. This is now our 42nd year [in business] and my 50th tax season, and I’ve liked it!”

Kurth became lead owner of HKP in 1995 but in looking forward to his eventual retirement, his main objective turned to making it so the firm would survive. He said, “About nine years ago, we started a leadership program for the owners to get them to realize what it takes to be a leader instead of just a manager. That worked out well. A Crowe Horwath U.S. firm really helped us out a lot – by attending their international meetings, I realized how well Crowe had done in their succession process and in getting owners to take a leading position.”

HKP experienced some hurdles along the way. Kurth explained, “A major milestone was realizing that we needed some help in regards to getting new business. One of the things we did [as owners] was we made sure we prayed for it.” They also took a critical look at how to make their firm run smoothly. “About five years in, we realized that partnership was not fitting us very well because everyone wanted to

September 2017 Next Gen Conference Re-Cap P. 2

Member News P. 3 Member Services article P. 4

CPAmerica's Tax Conference comes together in Tucson, Arizona this November!

CPAmerica's Tax Conference is set to take place in Tucson, Arizona, in the beautiful surroundings of the Catalina Mountains. The Loews Ventana Canyon Resort will host the annual event on Nov. 12-15.

We have reserved a block of rooms at $189/night. To ensure yours at the discounted rate, call the Loews Ventana Canyon at 800234-5117 and reference the code word "CPAmerica" or for more info on the CPAmerica website, visit: https:// tinyurl.com/yamc4g96

See Kurth, continued on page 2

2017 CPAmerica Next Generation Conference Member firms' up-and-comers met in Austin, Texas in August More than 145 attendees from two tracks, along with staff, sponsors, and speakers convened at the Westin Austin Downtown Hotel in Austin, Texas, last month for this dynamic annual conference.

Track 1 Track 1 participants started their event with Sam Allred (Upstream Academy) teaching leadership principles, client cultivation skills, and how to become a client's trusted advisor.

Jennifer Wilson (ConvergenceCoaching, LLC) went over strategies to retain you people, Michael Platt (INSIDE Public Accounting) covered firm metrics, and Art Kuesel (Kuesel Consulting, Inc.) spoke about developing a personal brand.

Track 2 Track 2 was designed for returning attendees and saw an agenda with enhanced topics.

Lee Eisenstaedt & Trent Clark (Leading With Courage Academy) started with a talk on

THE WESTIN AUSTIN DOWNTOWN

Kurth, continued from front be involved in all the decisions. We became a C corporation; we had a president and all the owners were part of the board.

The lead owner, who was the president, had responsibility for leading the company and all the owners had responsibility for dealing with the clients and dealing with employees,” he said.

These decisions paved the way to the firm’s success. Kurth also added, “Prayer has been a big part of it and having a supportive wife has been a big item. Staying focused [on and proactive for our clients],” is another key.

“What the clients are looking for from their accountants really hasn’t changed. They still want quality work and for us to be proactive and look out for them. That’s never changed … the biggest changes have been the different ways you can communicate with clients and the speed they expect you to communicate with them.”

We asked Kurth what issue is most important to HKP’s future. He said, “The main thing is your equity owners need to be owners that really fit the needs of the firm and that you don’t have more than what your income can support. Also, the owners need to be willing to take leadership positions and not just be good managers and good client people. A leader is definitely different than a manager because a leader is looking into the future and not just solving what’s going on at the moment.”

Kurth told us that CPAmerica was beneficial in giving him “the ability to see how to run our firm better and being able to

look at how different firms operate … and have been successful and then being able to pick and choose what makes sense within our firm.”

Kurth feels like HKP is ready for the future. He said, “the firm is in a good position, [from the standpoint of] the owners willing to take on leadership. Phil Laube took over for me and is doing a great job as lead owner.”

He’s ready for retirement. Kurth said, “My wife and I enjoy spending time together and in the last three years, she’s really been ready for me to retire. We are going to move to the eastern Washington area (Grand Coulee) on Lake Roosevelt. I’m looking forward to getting tied up in that community.

We had the opportunity to speak with Don Kurth’s wife, Judy, about h is upcom i ng ret i rement. Judy has been act ive i n the association, too, and has actively supported Don throughout his career. She retired in 1995 in order to be more available to her husband, and said, “As far as the deadlines go, I was prepared for April 15, but I was surprised when I learned that there was also September and October 15 deadlines … that was a real eye-opener for me … I told Don that after he retires, the words ‘hurry’ and ‘fast’ are not going to be in our vocabulary!

She attended many Crowe International and CPAmerica events and said that having guests at the meetings was very beneficial and that it was a good way of opening up doors to making new connections. “I have great friends because of that,” she said.

Retirement is “going to be a lot slower pace of life. I’m ready for it. Don and I are good partners in life. We work together well.”

Addendum: Don Kurth would like to extend an invitation to readers to an open house at the HKP headquarters (1111 Third Ave., Ste. 800 Seattle, Wash.) on Oct. 19, 2017.

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Next Gen, continued from front

Continued: behaviors that can derail a career and then presented on sharpening delegation skills. Art Kuesel then went over client development strategies designed to boost revenue and retention; Vicki Flier Hudson gave a workshop on presenting a powerful presentation (in two parts); and Jennifer Wilson spoke on secrets for building professional networks and later, strategies for running successful teams.

Next Gen returns next year in May and will be set in the mile-high city of Denver, Colorado.

Vicki Flier Hudson and CPAmerica President Alan Deichler

Track 1 attendees absorb the leadership training

Track 1 puts their hands in the air like they just don't care

Relaxing and taking in the session messages in Austin

Making connections and member sharing at Next Gen

Sam Allred teaching Track 1 attendees leadership principles

The Westin Downtown rooftop was a great place to kick back

Member News Wallace, Plese + Dreher announce nine promotions

, L.L.P. with headquarters in Chandler, Ariz., recently promoted nine professionals: Mirza Z. Baig, CPA, to tax supervisor; Joshua J. Blom, CPA, to audit manager; Allison L. Dozbaba, CPA, to tax senior manager; Christina V. Henning, CPA, to tax manager; Brendan J. Higgins, CPA, to tax senior; Jakob I. Klein, to tax senior; Leslie Prichard, CPA, to audit senior manager; Patrick Rae, CPA, to audit supervisor; and Priscilla R. Sanchez, to tax senior.

SME CPAs announces acquisition of Snyder and Stewart, PC and relocation

Member firm

, with headquarters in Augusta, Ga., announced that they have combined with Snyder and Stewart, PC. JOEL STEWART The firm also announced that Joel R. Stewart joined the SME CPAs team as a partner. SME CPAs also added employees PATTY DIXON Patty Dixon and LeAnne Jolley, making them the largest local firm in the Central Savannah River Area and creating the need LEANNE JOLLEY to relocate to a larger office.

SME CPAs relocated to Aiken, S.C.

Hunter named director of software services and client accounting services at GGG

Gregory F. Hunter has been named Director of Software Services and Client Accounting Services at Gray, Gray & Gray, LLP (GG&G), an accounting and business advisory firm headquartered in Canton, Mass. Hunter will oversee the process of analyzing clients’ financial operations, making recommendations for improvement, and implementing accounting and financial reporting systems to help clients enhance productivity and drive profitability.

He brings expertise in accounting software and systems, including Sage Intacct Accounting Software (GG&G is a Preferred Provider) to his new role.

Hunter is a graduate of Northeastern University, where he received a bachelor’s in finance before earning a master's from Babson College.

Gollob Morgan Peddy PC celebrate 35th year in business

Member firm PC (GMP), with headquarters in Tyler, Texas, expressed their appreciation to clients and staff for their support as they celebrated 35 years in business.

When the firm was founded in 1982, they had high hopes for a successful venture, and through the patronage of their clients and the hard work of the members of the GMP family, that success was realized.

Member firm Pulakos CPAs and Albuquerque CPA firm combine

Two established Albuquerque accounting firms have announced their recent combination. , established in 1960, and Satter & Hiller, LLC, established in 1984, are both locally-owned and specialize in tax, audit, and comprehensive business advisory services.

Russ Hiller, CPA, ABV, who has more than 20 years experience in both public accounting and private industry, joins Pulakos as a shareholder and officer.

Satter & Hiller founder, Dick Satter, joins the Pulakos team along with the firm’s staff.

New partners Cesternino, McEvoy and staff promotions at TBC

Albany, N.Y.-based

has announced the promotion of two audit managers to partners. Joining the ranks of partner are Michael D. Cesternino, CPA and Ryan McEvoy, CPA. Both partners will be directly responsible for client account management. Cesternino joined the firm in 2006 and McEvoy has been with TBC since 2009.

Cesternino’s main responsibilities include managing and supervising a large client base, which includes commercial entities. Cesternino is a graduate of the University at Albany with a master's in taxation, and holds his bachelor's in accounting from SUNY Oneonta.

McEvoy joined TBC after working for a large international accounting firm, and works with clients in a wide range of commercial industries. He is an active member of the Eastern New York Chapter of the Society of Financial Service Professionals (FSP). A graduate of Siena College, McEvoy graduated with a bachelor’s in business administration.

TBC also announced additional promotions. Katie Farrow, formerly the marketing manager, has been promoted to director of marketing and

given further responsibilities in the areas of practice growth and business development. Mark Sagan, CPA, was promoted to manager; Leah Gillham, CPA, Ben Henderson, CPA, AJ Zarrelli, CPA, and Nathan Pannucci were each promoted to supervisor; and Cassandra Hope has been promoted from staff accountant to senior accountant.

Frazier & Deeter opens Las Vegas, Nevada office

, a nationally ranked public accounting and advisory firm based in Atlanta, Ga., announced that they have opened a new office in Las Vegas, Nev. The new office will enable the firm to better serve clients in the Las Vegas area and across the western region.

The Las Vegas office supports the overall growth strategy of Frazier & Deeter, a firm that has repeatedly been ranked among the fastest growing CPA and advisory firms in the U.S. “As we have grown to serve clients in all 50 states and internationally, we’ve recognized the need for a physical office in the western region,” noted Seth McDaniel, managing partner of Frazier & Deeter.

The Las Vegas office will be led by Brandon Sherman. Sherman is a partner in the Process, Risk & Governance practice and the leader of the firm’s Hospitality and Gaming practice.

Tax Partner Andy Burnett will provide leadership for the Las Vegas tax practice.

Burnett specializes in assisting privately held businesses and high net-worth entrepreneurs and executives with tax strategies. He is one the leaders of the firm’s Family Office practice.

“We’re excited to expand our presence in Nevada to better support growth on the west coast,” stated Burnett. “We already serve several families in the area and have a unique practice with assisting Nevada based businesses and trusts.”

Nola, Waltman joins the RTBH team CPAmerica member firm (RTBH), announced that Alex Nola joined the firm as a staff accountant.

Nola is a graduate of the University of South Alabama and holds a bachelor's in accounting.

RTBH also announced the addition of Megan Waltman to their team as a staff accountant. Waltman is a graduate of the University of South Alabama with a bachelor's in accounting.

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From Member Services: Don't lose control. Give it.

If you read the definition of delegation, you can immediately see why it stands out as one of the most difficult management challenges of any busi ness.

According to MerriamG RACE HORVAT H - Webster’s, delegation is V ICE PRESIDENT OF "the act of giving control, S ERVICES authority, a job, a duty, etc., to another person.”

I needed to read no further than “the act of giving control” to understand why a lack of delegation can become the fatal flaw within an organization that otherwise excels.

I just returned from our fourth annual Next Generation Conference and am about to go on my tenth Visitation Improvement Program (VIP) meeting and have noted that the topic of delegation is prevalent when discussing challenges and solutions needed for leadership. Yet, delegation is still often lacking as an integral part of the action when it comes to retention of talent, building bench strength and succession planning. By no means is this challenge unique to professional services firms – even here at CPAmerica we continually seek to develop our people and grapple with the initial inefficiencies that come with delegation. You likely feel the same. After all, being in control is a big part of how you got where you are today.

Everyone acknowledges that teaching the skill of delegation should begin upon entry into management and thus practically second nature by the twilight of a great career. The irony of a significant lack of delegation quickly becomes apparent.

When you restrict the next generation of leaders from learning and developing greater expertise, you reduce the talent pool to which work can be pushed down;

you further reduce the talent pool by raising the likelihood of increased turnover due to the frustration of employees who feel they are being overlooked and overloaded.

Additionally, partners who are trying to identify their replacements continue to withhold tasks that will develop expertise and leadership skills because they do not see enough experience, or “partner material.” This results in partners retaining a broad scope of responsibility that disproportionately increases time spent doing rather than leading. You may have read the excellent article in Journal of Accountancy featuring member Wall, Einhorn & Chernitzer P.C., and their approach to avoiding what Bill Reeb, CEO of Succession Institute, LLC, refers to as a “vicious cycle” that can harm a firm’s succession in multiple ways.

It is very difficult to relinquish control even when you know it is the right thing to do.

I hate to admit that my earlier lessons in delegation were merely forced through the combination of hard deadlines and there only being 24 hours in a day. A moment of professional crisis is knowing you are going to miss the timely delivery of work, having to own up to the embarrassment of looking unprofessional and having no excuse other than you ran out of time. This is leadership by being on fire. Considering we all agree excellent leaders should be quite the opposite (cool and collected), this example is only one of many that illustrates why delegation must be a priority.

Often it is easier and faster to do things yourself that you are good at and especially hard to give up things you like doing. This is precisely why you need to teach the people behind you to be good at what you do. It takes great discipline to pull back from getting things done and instead give that time to another person; to set clear

Join CPAmerica for our Member Sharing Call: RISE Inclusion Initiative on September

14, from 4-5 p.m. ET.

Join us for a member sharing call on the RISE Inclusion Initiative featuring a presentation by Yasmine ElRamly of the AICPA. Yasmine is a CPA and a project manager at the AICPA who specializes in women’s initiatives and human capital projects.

Participants will discuss successes and challenges found while utilizing this program and firms that are interested in enrolling can learn about the benefits of the RISE Inclusion Initiative.

FOR MORE DETAILS, GO TO: www.cpamerica.org > under the News and Events tab, select Upcoming Events > see Sharing Calls

expectations, explain the details they might overlook, be available for help and provide time for review. However, the investment in teaching and coaching provides an infinite return.

Probably one of the most difficult things about delegation is that it means you must relinquish control over relationships you have spent years cultivating. While there is risk in exposing your clients to lessexperienced members of your team, it is one of the most effective ways to develop the skills you are looking for in your future leaders. Here is the return on investment in developing your people and the trust you place in them.

Reversing the cycle does require an intentional, and sometimes difficult, shift in thinking. At the upcoming Leading Partners Retreat, you will be immersed in thinking about what the firm of the future looks like and what you need to be doing to get your firm there. I suspect you will find delegation to be included in your Monday Morning Action Plans. I look forward to seeing you there.

104 N. Main St. Gainesville, FL 32601 (352) 727-4070 www.cpamerica.org

Send feedback and member advantage@cpamerica.org

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