10 2019 CPAmerica Advantage final

News from Your Accounting Association

CPAmerica Advantage CPAmerica's Next Gen Conference: Seniors through managers will meet in Nashville in 2020 to bring

Tech Update - Randy Johnston P. 2 Member News P. 3

CPAmerica's Next Generation Conference (Next Gen) is a must-attend event for successful seniors through managers. Members come away energized with fresh ideas, more confidence, and longlasting connections with other future leaders in the profession.

Conference provides your firm's emerging leaders the opportunity to A&A Remarks - Art Winstead P. 4 meet experts and influencers faceto-face, learn new tools, break out of their comfort zones, network, and be around the positive energy of like-minded individuals from all over the country. They will grow, learn the business, gain confidence in their ability, International bring back fresh ideas with them, and shape Group the future directions of their careers.”

Next Gen continues to grow and has built a following heading into its seventh year. The agenda is created with a committee of members to ensure a relevant and robust array of topics and speakers.

Meeting

Former attendee and Next Gen committee chair Ryan Carriere, CPA, senior accountant w ith Cummings, Keegan & Co., P.L.L.P., commented, "If you’re serious about your career growth and developing yourself as a professional, then you Ryan Carriere should attend the Next Gen Conference. Everyone I met there are the future leaders of the profession and their leaders know it. I have yet to go to a conference that has better

The following testimonials from a CPAmerica partner and from previous attendees of Next Gen help illustrate why you should not miss the upcoming conference:

Trevor Williams

October 2019

Trevor Williams, CPA, partner with GRF CPAs & Advisors and Next Gen committee member said, “As the data suggests, many of the best and the brightest are not receiving the career development support they desire. Attending the CPAmerica Next Generation

CPAmerica's 2019 International Group Meeting is set for Fort Lauderdale, Florida. The luxurious Ritz-Carlton, Fort Lauderdale will host the event on Dec. 2-5.

The meeting will help expand your resources to identify and capture international markets. For more info on the CPAmerica website, visit and sign in at: http://tinyurl. com/y26j8b56

See Next Gen, continued on page 4

New Member Snapshot: EFPR Group, LLP EFPR Group, LLP 280 Kenneth Drive, Ste. 100 Rochester, N.Y. 14623 Tel: (585) 427-8900 | Fax: (585) 340-5225 www.efprgroup.com

EFPR Group is committed to helping their clients navigate the most challenging business and financial issues. Their knowledgeable and experienced team of over 200 CPAs and business consultants are poised to help manage their clients’ financial future.

EFPR Group serves over 20 different industry sectors from emerging technology to global workforce services and alternative energy.

James Marasco | Managing Partner | jmarasco@efprgroup.com

Joseph Klimek | Partner | jklimek@efprgroup.com

Richard Davis | Partner | rdavis@efprgroup.com

James Leisner | Partner | jleisner@efprgroup.com

Mario DiLuigi | Partner | mdiluigi@efprgroup.com Michael Doody | Partner | mdoody@efprgroup.com Scott Healy | Partner | shealy@efprgroup.com

Headquarters:

Vincent Tomei | Partner | vtomei@efprgroup.com

Rochester, N.Y. David Veniskey | Partner | dveniskey@efprgroup.com Robert Williams | Partner | rwilliams@efprgroup.com

Kevin Hill | Partner | khill@efprgroup.com

Douglas Zimmerman | Partner | dzimmerman@efprgroup.com

Mark Jacob | Partner | mjacob@efprgroup.com

Hope DellaStua | Firm Administrator | hdellastua@efprgroup.com

Christopher Johnston | Partner | cjohnston@efprgroup.com

Hope DellaStua | HR Director | hdellastua@efprgroup.com

Joseph Kehm | Partner | jkehm@efprgroup.com

Douglas Zimmerman | Marketing Director | dzimmerman@arbcpa.com

Craig Kellner | Partner | ckellner@efprgroup.com

Kim Crevelling | IT Network Administrator | kcrevelling@arbcpa.com

CPAmerica Preferred Provider Spotlight:

How Artificial Intelligence Assists Tax Professionals

Artificial Intelligence (AI) is a term you hear a lot these days in the business world, but what does it mean to tax professionals?

With the dawning technology age of AI, how can your CPA firm benefit from it?

A recent study done by McKinsey & Company showed that of the most aggressive adopters of AI and cognitive technologies, 83 percent said they have already achieved real benefits. Among companies, those that embrace AI are predicted to see their cash flow double by 2030. Those that don't could lose 20 percent of their revenue by then.

Checkpoint Edge™, from Thomson Reuters, is an AI-based tax and accounting research platform that is transforming the way tax professionals manage their work processes.

The Checkpoint Edge AI team set out to solve a number of common problems faced by tax professionals including navigating the complex and ever-changing tax codes, shifting trade rules and other regulations, stricter rules of compliance, and providing the best research answers by utilizing intuitive AI. AI streamlines search capabilities to do the research work for you, saving valuable time so you can focus on more important work. This smart software is built to deliver the latest in artificial intelligence, cognitive computing, and machine learning, all tied together. Many CPAs are embracing AI technology to advance into future-ready firms. With AI technology, the future of tax accounting is now.

Don’t miss Thomson Reuters as an annual sponsor and exhibitor this year at the 2019 CPAmerica Tax Conference.

To learn more about Checkpoint Edge visit: tax.tr.com/ checkpoint/edge

Technology Overview with Randy Johnston:

Protect Your Firm by Being Proactive on Artificial Intelligence In the next five years, we will need to take our firms through a technology transition unlike anything that has come before.

While you may believe that the transition from DOS to Windows, the arrival of the Internet, or the use of cloud technology were big things, the use of artificial intelligence (AI), machine learning (ML) and other emerging technologies, such as robotic process automation (RPA), will deeply change the practice of accounting.

How can you help keep your firm on the right track? It certainly won’t be done by doing the same old thing, but the risk won’t be mitigated by jumping to new technology too early, either.

CPAmerica has been proactively scheduling CPE courses to help you investigate emerging technology options at regional meetings, in technology briefing calls and through the Innovative Technology Committee. However, we each may discover different technologies, have different client needs, and utilize different strategies for our firms. Remember that you are still well-served by having a strategic plan and tactical objectives for the firm, which are then incorporated into a technology strategic and

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tactical plan. We still must get day-to-day work done in accounting, payables, tax, audit and other core services. Each business area and application has developments in progress that will apply AI, ML and RPA. The key question you should ask is, “When does my area of responsibility need to apply the emerging technology?”

What are the top AI and automation opportunities?

Wherever there are a lot of transactions or data, there is an opportunity to automate. If you use online accounting software, you have already seen the opportunity to reduce the amount of effort needed to use bank or credit card feeds to capture all transactional data. Some of you are using expense management software to capture transactions and reduce the effort to manage expense reporting. These simple examples leverage the benefits of centralized cloud computing.

Over time, computing power has gone from centralized to distributed and back to centralized again and is preparing to shift back to more distributed capabilities. The new wave of distributed computing is a result of widespread use of mobile computing power and from the reduced cost of graphics processors that can accelerate ML and AI. Recognition capabilities, commonly referred to as optical character recognition (OCR), have continued to improve, but adding AI, ML and other techniques improves accuracy.

Having a local dedicated graphics processor in your laptop or desktop can speed up AI and ML. If a document is presented in paper form, the accuracy of translating the image’s numbers and words continues to improve, approaching 100 percent. Of course, it is better to capture the data in the original format, which means we will download the transactions from a bank or and your team should not be keying data at any level.

This is Part 1 of 2 of Randy Johnston's (from Intelligence, to be continued in the next issue of the Advantage newsletter

The Intercompany Price Is Right: HPG’s Michael Arena talks about transfer pricing This is Part 2 of 2 of the transfer pricing article, Part 1 can be found in the September Advantage newsletter We asked Arena to touch on some of the things he will be talking about at the International Group Meeting in December. He said, “Last year was my first one. I think it is an excellent conference and I'm looking forward to presenting this year. I'll be touching on a variety of topics including transfer pricing’s impact related to U.S. tax reform, which is something many clients are struggling with as they try to understand and comply with the new rules. We will also discuss the importance of transfer pricing’s intersection with customs. We help our clients determine a price that will satisfy the tax authority from the income tax perspective, but also a price that minimizes their duty and tariff costs. I'll also provide an update on what we're seeing related to BEPS (base erosion and profit shifting) - the global initiative reforming tax laws worldwide. We are just starting to get some reactions from the tax authorities and clients about this.”

Also presenting with Arena will be two transfer pricing specialists from Crowe Global. They will help to offer an international perspective on the topics and will discuss how they collaborate to provide a global transfer pricing solution for clients, something he says “distinguishes us from small and mid-sized firms and puts us in position to compete with the Big 4 in terms of resources.”

“We deal with many U.S.-based clients. I'll act as a point person but bring in Crowe Global resources as necessary. If the client is an inbound, the parent company always feels more comfortable knowing that they've got someone local to talk to, someone that speaks the local language and that they can meet in person. While I'm working on the U.S. side, they are working on the foreign side. It’s such a great solution that we are able to offer.”

Member News Umba named as an owner of Hagen, Kurth, Perman & Co., P.S.

Carrie Jo Umba, CPA, has become an owner of P.S., in Seattle, Wash.

As an owner, Umba joins four current owners, blending new initiatives with proven strategies to expand the firm’s role as a trusted advisor to clients. She has been a Wash.-licensed CPA Carrie Jo Umba since 1998.

Umba specializes in serving closely-held businesses and their entrepreneurial owners and provides tax services to a highly diverse mix of clients. A graduate from the University of Washington, Umba holds a master’s of professional accounting in taxation.

DMJ announces accounting firm professional promotions

announced the following promotions: Keith Jarmusch, CPA, has been promoted to senior manager. Jarmusch joined DMJ as a tax manager in 2007 and earned a bachelor's in business administration from Youngstown State University. Alicia Williams, PHR, SHRM-CP, has been promoted to chief HR officer. Williams joined DMJ in 2011 as a human resources administrator and earned her bachelor's in administrative services with a focus in business from North Carolina Agricultural and Technical State University. Caren Rodriguez has been promoted to chief marketing officer. Rodriguez joined DMJ in 2006 as a director of marketing.

She manages firm-wide marketing and business development initiatives.

Rodriguez earned her bachelor's in communications from North Carolina State University and is a Leadership North Carolina alumna. She is also a member of the Association of Accounting Marketing, where she previously served two terms on the board of directors. Shirley Weigel, CPA, partner, has been promoted to chief operating officer. Weigel joined DMJ in 1990. Since that time, she has worked in the Accounting and Auditing Department and was promoted to partner in 2011. She also dedicates her time to overseeing firm administration. Weigel earned her bachelor's in accounting and management from Southeastern Oklahoma State University. Jeff Marko, CPA, has been promoted to senior manager. Marko joined DMJ in 2018.

He earned his bachelor's and master's in accounting at North Carolina State University. Drew Steel, CPA, has been promoted to senior manager. Steel joined DMJ. He earned a bachelor's and master's from Southern Connecticut State in business management. Drew Haddock,

CPA, has been promoted to senior manager. Haddock joined the firm in 2017 and he earned his master's in accounting from Eastern Carolina University and his bachelor's in accounting from North Carolina State.

BS&P CPAs and Consultants announces new hires of Buffalo, N.Y., announced two new accountants.

Matt Mernan received his bachelor's in accounting and earned a master’s in business administration from Canisius College. Mernan has joined the firm as a staff accountant. Ian Liverani received his bachelor's in accounting and earned a master’s in accounting from the University at Buffalo. Liverani joined the firm as a staff accountant.

Gray, Gray, & Gray promotes six team members

a Canton, Mass.based certified public accounting and business advisory firm, has announced six promotions.

Martin Kirshner has been named a director in the firm’s Client Services Department. He also serves as chair of the firm’s Energy Industry Practice Group. Kirshner is a graduate of the University of Massachusetts at Amherst and earned his master’s in accounting at Northeastern University. Natacha Gomes has been promoted to senior staff accountant in the firm’s Tax Department.

She is a graduate of the University of Massachusetts at Boston and earned her master’s in accountancy at the University of Phoenix. Dan O’Connell has been promoted to senior staff accountant in the firm’s Tax Department. He is a graduate of Bridgewater State where he earned his bachelor's in accounting. Linh Truong has been promoted to senior staff accountant in the firm’s Tax Department.

She is a graduate of Boston University where she earned her bachelor's in business administration. Angela Ly has been promoted to senior staff accountant in the firm’s Tax Department. She is a graduate of Bentley University where she earned her bachelor's in information systems audit & control, and her master's in accounting.

• Abby Rosen has been promoted to senior staff accountant in the firm’s Client Services Department. She is a graduate of Roger Williams University where she earned her bachelor's in accounting.

North Dakata firm announces four recent promotions

Fargo, N.D.-based member firm recently announced four promotions.

Matthew Nelson has been promoted to

supervisor in the Tax Department. He is a native of Jamestown, N.D., and earned a bachelor’s from North Dakota State University. He joined Widmer Roel in 2014. Juan Martinez has been promoted to supervisor in the Audit Department.

He is a native of Grafton, N.D., and earned a bachelor’s from the University of North Dakota. He joined Widmer Roel in 2016.

Nick Evin has been promoted to a senior staff accountant in the Audit Department.

Evin is a native of West Fargo, N.D., and earned a bachelor’s from North Dakota State University. He joined Widmer Roel in 2017. Andrew Schell has been promoted to manager in the Audit Department. Schell is a native of Fargo, N.D., and earned a bachelor’s from North Dakota State University. He joined the firm in 2014.

MCL announces employee promotions and new hire

The Ridgeland, Miss.-based accounting firm of P.A. (MCL) announced the promotions of two staff members. Samantha Gill, CPA, has been promoted to senior auditor.

Gill joined the firm full-time in 2016 providing audit and attestation services.

She earned her bachelor’s and master’s degrees in accounting at the University of Southern Mississippi and became a licensed CPA 2017. Miya Bates has been promoted to senior auditor. She joined the firm full-time in 2014 and provides audit and attestation services. She earned her bachelor’s in accounting from USM and a master’s in accounting from Mississippi College. Also, MCL announced that Tramel Reeves recently joined the firm as a staff accountant. He earned a bachelor’s in accountancy from Mississippi College.

Kentner Sellers promotes four employees

, headquartered in Vandalia, Ohio, recently announced four employee promotions: Dan Lewis to accounting senior manager, Nick Barley to tax senior manager, Kathryn Tolbert to accounting supervisor, and Anthony Pyle to accounting senior. Lewis joined the firm in 2016 with 18 years of broad experience in accounting, tax, and consulting. He directs the valuation practice group at the firm. Barley joined KS in 2011 after graduating from Ohio State University where he earned his bachelor's in business administration with a specialization in accounting. Tolbert joined the firm in 2013 after graduating from the University of Dayton where she received her BSBA and MBA with a concentration in accounting.

Pyle has only been with KS since 2017. He graduated from Concord University in Athens, W.Va., where he double majored in accounting and finance.

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A&A Remarks: CPA Independence - Just How Bright is That Line?

Of course, I’m independent. service; and ultimately, is there impairment And I have the checklists to of independence as a result of providing the hosting service being evaluated? From time prove it! to time, we all have taken a few minutes to Before I go much further, consider independence impairment questions I want to make it very and concerns. We should and we will continue clear; I do believe that a to do so. There is nothing wrong with stopping CPA providing assurance to consider potential independence and s e r v ic e s s hou ld b e coming to a thoughtful conclusion based Art Winstead, Director of A&A i ndependent (for t he on our professional judgment. And, those purposes of this article, earlier-mentioned checklists assist us with the the use of the word ‘assurance’ substitutes required documentation. for ‘audit’). I respect the independence requirements and act accordingly with all of Surely all of the independence standard setters the applicable independence requirements and regulators are well-intentioned. We accept that I, or my firm, may be subject to following. and at least assume that to be true. I find them In this short article, I don’t want to take any to be well-intentioned and more often than risk that a reader could possibly conclude I may not, very logical in the rules they issue with an be advocating that the independence rules are expectation of compliance. too complex and difficult to follow. There are a plethora (yep, I have been waiting for a while to For many decades, we as accountants, use that word) of independence rules, such as advisors, regulators, standard-setters and those from the AICPA, PCAOB, SEC, GAO, and those using information on which a CPA has DOL, not to mention that the rules are a point attested, have referenced our independence of emphasis for the peer review process and with respect to attest clients as the foundation, PCAOB inspections. As matter of fact, we can cornerstone, and the guiding principle on go back to the ‘34 Act and find independence which our objectivity is not compromised. requirements. Without any hesitation, I Standard-setters and regulators use these believe that the over-reaching principles of same thoughts. independence means being independent in both fact and appearance.

So where are we as assurance providers regarding independence?

A few weeks ago, I was involved in a very intense discussion concerning a question On occasion, opinions are offered that as to where the line of independence may advocate once an assurance provider agrees be impaired when (or if) a firm is providing to be compensated and then is compensated, hosting services to an attest client. It was a by definition, independence is impaired. To great discussion, and to some, it may have me the test is this: Is independence impaired been purely academic. I readily agree that or threatened? I would respectfully respond it does take thoughtful consideration and no to both. significant judgment to first determine: what is a hosting service; is the service a I once had a banker question me about permissible or non-permissible hosting my independence. While attempting to be

somewhat simple in my reply and also trying to be true to the independence requirements, I may have missed his real question. His short reply (and one I believe made with accuracy and truth) was this: “It’s more important for the financial statements to be true, accurate and fully disclosed than for the assurance provider to be independent.” The independence requirements do not apply that way, but WOW, was he totally wrong!

Now, this thought is clearly off and outside of the professional requirements regarding independence. I see independence as a role.

It’s a role that has to also balance objectivity - at the very least it has to consider it. The requirements do not allow us to consider or reduce a threat to independence impairment or to consider a threat to independence impairment considering objectivity alone. I understand that. However, while we provide a number of professional services that do not require independence, there are no services in which we are allowed to provide and allow our objectivity to be compromised and/or reduced.

The quality of my musings here may not reflect the time put into my consideration of independence for this piece. In the days leading up to putting this piece into final form, I asked several CPAs as to their thoughts regarding independence for us as professionals providing assurance services. This small sample of questions and discussions more often than not conclude with this thought: Can anyone be totally and really independent?

Next Gen, continued from front page

equipped me personally and connected me to subjects that were truly applicable to this point more future leaders of our profession.” in my career. And, it left me feeling energized and hopeful for not only my future at my firm, Here is what Carolyn Kollar, but the future of the accounting profession as senior staff, Accounting a whole.

Department, with Whalen & Company CPAs had to say, Interested in attending? Visit the Next Gen “The Next Gen conference registration website for more information at was unlike any conference http://tinyurl.com/y2bqhmpu. Save the date I have attended before. It for this dynamic conference taking place on Carolyn Kollar tied together a vast array June 3-5, 2020, in Nashville, Tenn. of business professionals from around the country, widening my network. There were We look forward to another great conference phenomenal speakers on many different next year and hope to see you there!

Contact us at: 7555 W. University Ave. Gainesville, FL 32607 (352) 727-4070 www.cpamerica.org

Send feedback and advantage@cpamerica.org

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