May 2023
IN THIS ISSUE:
► How to utilize the latest technologies
► Preferred Provider Spotlight - Digilence
► Mental Health Month sharing call
► Member News
► CPAmerica Insights - Grace Horvath
Technology innovations are constant and can sometimes feel overwhelming to keep up with. CPAmerica’s director of information technology (IT), Harrison Schofill, breaks down everything you need to know about artificial intelligence (AI), cybersecurity, cyber resiliency and penetration testing.
Although AI has been more prevalent in the current zeitgeist through ChatGPT and OpenAI, it has actually been used for years in various capacities. The Alexa or Siri you regularly use are using AI software. Even face-altering filters on Instagram or TikTok are also using AI technology. These applications can be incredibly helpful and provide time-saving support, however there is much to be aware of regarding AI and your business.
“AI has been around for several years but is starting to pick up in the consumer-facing applications,” said Schofill. “From the productivity standpoint, we’re seeing firms successfully use AI for audit and tax preparation.”
Every company has a different approach to how they develop their AI platform, explained Schofill. There are multiple types of applications available, some come straight out of the box and others are custombuilt based on the firm’s needs.
In addition to tax and audit uses, AI can support your company in other administrative ways. Alleviating the need to manually complete tasks such as expense report management, job performance and tracking, and cutting down on labor time.
“Tools like ChatGPT can quickly output content for simple uses,” said Schofill. “Building outlines, writing copy and even writing code are easy with these applications.”
With any beneficial technology advancements, there are always
concerns to be aware of.
“On the bad side of AI, there are all kinds of concerns. Obviously, it’s the destruction of mankind, always the most extreme concern,” said Schofill. “In certain places, they are also using AI for surveillance to detect crime, but that can cut down on your privacy.”
On a more practical note, you must be aware of certain biases that can be unintentionally built into the system when reviewing tax or audit work. Certain income levels or zip codes may flag the system more than others, so reviewing that information is imperative.
Additionally, disinformation and deep fakes are more wildly shared than ever, and the technology used to create them is continuously improving. Individuals need to stay vigilant to ensure they are not tricked by these types of false information.
“Last year hackers were using deep fake technology to apply for remote jobs, just to get their foot in the network door,” explained Schofill. “They were using a deep fake with someone else’s image and successfully completing video job interviews. Now recruiters are needing to be more aware of how to detect deep fakes in their interviewing.”
Since AI technology needs a substantial amount of processing power, climate change is also a concern in this area. The more we employ AI, the more servers are needed, producing tons of heat and increasing their overall carbon footprint.
For the last decade, the main focus has been cybersecurity. Keeping the business servers safe, impenetrable and secure from bad actors. However, the focus has shifted in the last few years transitioning to cyber resiliency.
Cyber resiliency is knowing that the security threats to your business are very real, and you will likely be a target, but how do you regain your systems as fast as possible. This shift has changed the thought process from only defending the network to being able to respond, react and recover.
“Reports have shown that last month saw the highest number of ransomware attacks in the world to date,” said Schofill. “Users were See Technology, continued on page 2
Most firms struggle to effectively leverage emerging technology (AI, RPA, Automation) to help them automate, scale and grow. Digilence helps accounting firms of any size level the playing field with an all-in-one, subscription-based solution that makes digitization more accessible, more affordable and more accurate.
Digilence is changing the game by productizing and democratizing cognitive automation technology for the broad financial industry. They combine best-of-breed hosted AI, ML, RPA and IDP into a single cloud-based platform.
The Digilence Cloud helps firms of all sizes achieve
Continued from Technology, on page 1
getting better at detecting ransomware, causing a drop off in attacks, but they are gaining steam again and these attacks aren’t going anywhere.”
Threat actors are also leveraging tools like ChatGPT to build free code for malware in seconds, when typically, it would have taken weeks to build that type of sophisticated malware.
“Hackers are using AI tools to generate phishing emails in languages other than their own to deploy really convincing attacks on systems,” said Schofill. “These fluent-sounding messages make it harder for people to detect their illegitimacy.”
One of the many services CPAmerica offers is penetration testing, which features a comprehensive evaluation and test to simulate an attack on your systems. Researching the firm’s internet presence, scanning their available servers for vulnerabilities, scanning social media sites to leverage employee vulnerabilities, and deploying phishing attacks are some of the tactics included.
“We emulate an attacker in a controlled and safe environment to not actually break things, but to provide a pretty close simulation of what an actual threat actor does,” said Schofill. “When finished, We provide a comprehensive list of all their vulnerabilities within an extensive report. Our goal is always to help the firm improve their systems.”
Through this penetration testing, specific social engineering and scripted attacks are developed for discovered vulnerabilities, with a step-by-step narrative provided for each attack. The report also includes an executive summary for upper management with strategic recommendations along with a detailed, tactical report with mitigation recommendations for IT, explained Schofill.
When it comes to keeping up with these types of technologies, you must be vigilant and well-informed. Our 2023 Technology Roundtable will be held June 20-23 in Tampa, Florida, and features two and a half days of informative sessions and fun networking activities.
This annual meeting will feature a deep dive into PowerBI with the 415 Group, Backup and Disaster Recovery with NMGI’s Randy Johnston, Bob Fink’s session on Microsoft’s Power Automation, and more. The event also includes a high-tech golf game at Top Golf, networking dinner and a special event on the sand at
great ROI and broader transformation very quickly with a growing list of automation products across tax, audit, compliance, lending, investments, and advisory, as well as many back-office functions in finance. On average, our customers achieve digitization ten times (10X) faster with at least 400% higher ROI when compared to alternatives.
For more information, visit www.digilence.com or email leckart@digilence.com.
Tampa’s iconic beachfront bar, Whiskey Joe’s Bar & Grill.
CPAmerica will also be holding a ChatGPT Sharing Call on Tuesday, June 13 at 4pm ET. You can register by visiting tinyurl.com/43m66c9p.
For more information on anything included in this article, please contact techcon@cpamerica.org.
Take care this Mental Health Month! Learn more about burnout, how to avoid it and how to put yourself first in your life and career during the sharing call, Taking Taxing out of Tax Season – How to Avoid Burnout on May 23 at 2pm ET. Featuring Randy Crabtree, Co-Founder and Partner, with Tri-Merit.
Kassouf promoted 13 team members in January, naming two new directors. Three team members were promoted to principal, and a new principal joined the firm. Kassouf’s vision of upward mobility and continuous improvement drove these promotions. “With these promotions and our new hire, our senior leadership team has grown by 37.5%, ensuring a sustainable, bright future for Kassouf,” said Kassouf director and shareholder Gerry Kassouf. Kassouf’s new directors include Margaret Cook and Joni Wyatt, who both work in Kassouf’s Healthcare Group. They are the first shareholders at Kassouf who are not Certified Public Accountants (CPAs), making history and further solidifying Kassouf as an advisory firm. Kassouf’s team members who were promoted to principal include Sally Bradley, James Dicks, and Rachelle North, and Shannon Pike recently joined the firm as a principal. Pike holds over 25 years of experience in financial planning and is a certified financial planner practitioner. Additional promotions include Julie Myers, CPA, to manager; Peri Cabral, CMPE, CHPE, to senior healthcare advisor; Stewart Garner, CMPE to senior healthcare advisor; Levi Blalock, CPA, to supervising senior accountant; Meghan Custer, CPA , to supervising senior accountant; Bridget Adams O’Neal, CPA, to supervising senior accountant; Lacey Harris Klumpp, CPA, to senior accountant; and Hayden Williams, CPA, to senior accountant. “We are incredibly proud of these team members and can’t wait to see all they accomplish in their new roles,” said Kassouf director and shareholder Jonathan Kassouf.
the University of Nevada, Reno, and her Juris Doctor from the University of Iowa. She is a member of the Nevada Society of Certified Public Accountants, the American Institute of Certified Public Accountants, and the Estate Planning Council of Northern Nevada.
in providing business, tax, and accounting services to clients in construction, real estate development and sales, retail and wholesale industries, nonprofit organizations, and professional service providers.
Barnard Vogler & Co. announces that Erika Hoppe, CPA , has been promoted to senior manager. In 2014, Hoppe joined the firm as a staff accountant. She has a wide range of experience in individual, business, and trust taxation. Hoppe now focuses on tax engagements for high net-worth individuals, trusts, and estates. Hoppe received her Bachelor of Arts in criminal justice from
Pulakos CPAs, an Inside Public Accounting (IPA) Top 500 Public Accounting Firm in Albuquerque, NM, is excited to announce the promotion of Ryan Thorpe to assurance partner. Thorpe is a Certified Public Accountant, licensed in New Mexico and a Certified Construction Industry Financial Professional. Thorpe has over 15 years of extensive experience in public accounting providing assurance and accounting services including audits, reviews, compilations, and other services. In his tenure he has experience in construction, government contractors, member organizations, not-for-profit, employee benefit plans and foundations. Thorpe states “Over the course of my career, I have learned that, in this industry, client relationships are what drive the business.”
EFPR Group, CPAs is excited to announce an innovative policy change within the firm and its companies. Beginning later this year, employees of the firm will be moving into a 2,080 annual hours requirement. This is a trailblazing shift from the professions long-standing 2,300 annual hourly requirement. “For decades the public accounting profession has been known for long, grueling hours and it is our fervent hope we will change that narrative,” explained Jim Marasco, managing partner. “Our Partners are passionate about the opportunities within the accounting profession and if we need a cultural shift to highlight these advantages then let’s start with us.” Creating a work-life balance for employees has been one of the firm’s guiding principles, and although there is generous personal time off (PTO), competitive salary and benefits, the leadership feels the need to also create policy around the hours employees work.
N&K CPAs, Inc. is proud to announce two new principals at the firm, Charles T. Goodin and Won Jeong Lee. Goodin began his career at N&K CPAs, Inc. in 2008 after graduating with a Bachelor of Business Administration degree from the University of Hawaii at Manoa. He received his Hawaii CPA license in 2012. Goodin has 15 years of experience in public accounting with expertise in providing assurance and management consulting services to clients in industries such as construction, employee benefit plans, government, nonprofit organizations, real estate development and sales, and retail and wholesale industries. Lee began her career at N&K CPAs, Inc. in 2003 after graduating with a Bachelor of Business Administration degree from the University of Hawaii at Manoa. She received her Hawaii CPA license in 2004. Lee has over 22 years of experience in public accounting with expertise
“The intent of our 2080 initiative is to demonstrate that a true balance between work and personal life can be achieved in our industry and that people don’t have to leave the profession to attain that balance,” continued Marasco. The firm’s revenue continues to experience double digit growth throughout its main tax and attest service lines as well as expanding niche service areas.
Gray, Gray & Gray, LLP (G3), has been ranked as the seventh largest independent accounting firm in New England by Accounting Today. G3’s annual revenue of $29.5 million represents nearly 10 percent of growth over the year prior.
“Our growth is directly related to our strategy of offering an expanded advisory relationship with an array of complementary consulting and accounting services,” said Jim DeLeo, MBA, CPA/MST, leading partner at G3. “As our clients’ needs have grown exponentially, we have stepped up to be a more complete resource. That extends beyond traditional tax and audit services to encompass such critical services as strategic planning, CAS, and cybersecurity & IT consulting.”
May is an anticipated month here at headquarters marking the official start of our busy season. We expect this season to be busier than usual as we are tackling the first initiatives of our threeyear strategic plan to be the association of choice with actively engaged member firms.
The November 2022 workshop with Tom Hood resulted in an ambitious vision beginning with the Five Bold Steps identified as our goals for 2023:
1. Refresh the brand and message of CPAmerica
2. Revisit the criteria for membership
3. Create a Center for Excellence
4. Engage with member firms’ staff more deeply
5. Utilize the Association Management Software (AMS)
We left the workshop excited about the alignment of our board and direction of the association. Bringing members more value and better leveraging our tools… theoretically these are obvious, but rather nebulous when considering measurable outcomes. Excitement became serious contemplation as we defined what could be successfully achieved in one year. Addressing our past, the workshop revealed that scalability has been an obstacle, so precision is a must to meet these goals.
Brand and message refresh is the low hanging fruit of the five that led us to engage creative agency, Living Group referred to us by Crowe Global. Factors in our decision to engage them are their understanding of the complex relationship with the network and the lack of clarity surrounding it, and their international perspective that should be reflected in our brand. We are towards the end of the discovery phase that includes input from over 20 managing partners and firm leaders. All agreed our presence today does not portray the quality or benefit of CPAmerica or differentiate us from the competition. As a member you expect to “gain domestic and global prestige” and the new website and refreshed brand will aim to support that.
Membership criteria, including geographic consideration and minimum size were last assessed in 2012. We formed a committee that includes past and present board members, and members-
at-large that represent a cross-section of size and geography. They will meet this month to assess the criteria and how it serves our sharing model that is based on the quality of the firms and their ability to contribute to a mutually beneficial alliance. The review is a prudent exercise to preserve value. Any suggested changes will be brought to the Council of Members for approval.
The next three ascend to high-level programming where we proceed with an emphasis on pacing. Although we are not a firm, we are a business faced with analyzing our own digital maturity and using technology to run a better business and provide better member experiences. The last three steps are highly intertwined as each one serves the other. Beginning with the Center for Excellence, members will be invited in the coming weeks to Cybersecurity and CAS pilot groups. The centers will be on a collaborative platform where members interact in real-time with each other and SMEs. They will have access to discussions and resources that drive thought leadership among firms. IT consultant, Randy Johnston, will be an active part of the community and we’re formalizing a relationship with a well-known CAS consultant who will participate in the portal throughout the year. We are dedicating time at the CAS conference to gather input to drive an attractive and useful platform that we can expand to other areas of the practice.
While the collaborative center is one way to engage members, all the underlying data in our AMS can help improve engagement. Our first step is cleaning
up and refreshing your information. The Tax and A&A Advisory Committees are refining the categories of expertise that you search to find each other. In the coming weeks we will contact you to update your firm expertise listed in the system. But an AMS isn’t built to analyze that information. The solution for the final deliverable is adding association-specific data analytics software to our tech stack, which we plan to do later this summer. The software has dashboard capabilities that allow us to leverage information to expand our reach into the membership and to improve services using predictive analytics. The areas this will impact are member engagement, member satisfaction and experience, member retention, member acquisition, and event attendance and engagement.
We are celebrating our 45th year built on members’ commitment to improve and strong leadership that has recognized opportunities to stay relevant and valuable to our firms. While gut instinct has served us well and continues to do so, we are excited to head into the future embracing technology made to help us be better. Reaching our goals this year will look like a bolder and more modern association ready to support you for 45 more.
