CPA Voice - January/February 2024

JANUARY | FEBRUARY 2024

Ohio Accounting Talent Coalition takes aim at talent deficit Marijuana legalization in Ohio – What’s next?

Are we still dodging that recession bullet?

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CONTENTS feature

VOLUME 16 | ISSUE 1 EDITOR Jessica Salerno-Shumaker – jsalerno@ohiocpa.com GRAPHIC DESIGN Kyle Anderson – kanderson@ohiocpa.com EDITORIAL OFFICES CPA Voice 4249 Easton Way, Suite 150 Columbus, OH 43219 Tel: 614.764.2727 Email: CPAVoice@ohiocpa.com Website: www.ohiocpa.com

18 Ohio Accounting Coalition takes aim at talent deficit The accounting talent shortage in Ohio is at a critical point that requires a comprehensive and all-hands-on-deck approach to resolve.

in depth 2 CEO letter 3 Self-assessment exam Free for members!

4 Beneficial Ownership Information reporting requirements update

What comes next for BOI reporting requirements.

6 The email efficiency tricks you’re missing When it comes to managing your inbox, you might be making one critical mistake.

8 DEI: Meaningful change requires an ecosystem Creating a diverse and inclusive workplace culture means longterm commitment.

10 AI and the audit AI is revolutionizing audit solutions, but as the integration evolves this poses both challenges and risks.

14 Marijuana legalization in Ohio – What’s next? look at what could be on the horizon for marijuana in Ohio after voters A passed Issue 2 in the fall.

22 Are we still dodging that recession bullet?

Forecasting the economy means studying a constantly moving target.

26 2023 Ohio CPA PAC Annual Report 34 Members in motion

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CPA Voice is the official magazine of The Ohio Society of Certified Public Accountants. CPA Voice’s purpose is to serve as the primary news and information vehicle for more than 19,000 Ohio CPA members and related professionals. Articles are reviewed for technical accuracy. However, the materials and information contained within CPA Voice are offered as information only and not as practice, financial, accounting, legal or other professional advice.

While we strive to present accurate and reliable information, The Ohio Society of CPAs makes no warranties regarding the accuracy of the information provided herein. Readers are strongly encouraged to conduct appropriate research to determine the accuracy of the information provided and to consult with an appropriate, competent professional adviser before acting on the information contained in this publication. The statements of fact, thoughts, advice and opinions expressed in CPA Voice are those of the authors alone and do not represent or imply the positions, opinions, nor endorsement of The Ohio Society of CPAs or of its publisher, editors, Board of Directors, or members. It is our policy not to knowingly accept advertising that discriminates on the basis of race, religion, gender, age or origin. The Ohio Society of CPAs reserves the right to reject paid advertising in its sole discretion. We do not necessarily endorse the resources, services or products unrelated to The Ohio Society of CPAs that may appear or be referenced within CPA Voice, and make no representation or warranties about those products or services or the accuracy and claims regarding those products and services.

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JANUARY | FEBRUARY 2024 | 1

A WORD from our CEO

A year of purpose Last year at this time I urged you to make 2023 your “year of opportunity,” and I hope looking back you found moments to embrace new and challenging opportunities, even if they were unexpected.

In 2024 I’m asking you to consider how you can make this a year of purpose. There are countless demands on our time, both inside and outside of work. Some of these demands are worthwhile, and others, while shiny and exciting, are not.

Pursuing purpose in how you spend your time is a commitment worth making, whether that means learning new skills, chasing big goals or finding new ways to grow personally and professionally. It’s easy to get caught up in fire drills and deadlines every day and forget about what makes a difference in the long run. Seeking purpose in your actions and time can help you see through the distractions and understand what makes sense for you.

Of course, this might mean saying “no,” or shifting your focus from things in which you might have previously participated. It might feel strange at first to decline invitations or stop doing work you had previously done, but finding purpose doesn’t equate to overextending yourself just so you can please other people. Instead, it’s about finding what matters to you and choosing to invest your time in pursuit of that.

While you’re considering what will bring you purpose in 2024, OSCPA is here to support you and help you meet your

2 | CPA Voice

2024 goals. Register for our Town Halls, the Strategic Finance & Accounting Conference or CORECon – Core Skills Conference all happening in the coming months. Go to ohiocpa.com/myoscpa to learn about these and a wide selection of other learning opportunities.

I’d love to hear more from you on how you’re pursuing purpose this year. Reach out to me through my contact information, and I wish you the very best as we welcome 2024 together and continue our efforts to advance the state of business.

Self-Assessment Exam

SCOTT D. WILEY President and CEO

swiley@ohiocpa.com | 614.321.2218 (office) | 614.546.9430 (cell) Twitter: @ScottDWiley | LinkedIn: www.linkedin.com/in/scottwileycae

JANUARY | FEBRUARY 2024 Product ID: #59836

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JANUARY | FEBRUARY 2024 | 3

ADVOCACY in focus

Beneficial Ownership Information reporting requirements update OSCPA staff report

While legislative efforts to either delay or suspend the federal Beneficial Ownership Information (BOI) reporting requirements remain ongoing, the Corporate Transparency Act (CTA) went into effect on Jan. 1, 2024, and the initial deadlines for filings of new businesses will begin to come due 90 days into 2024.

Businesses in existence in 2023 or prior have until the end of 2024 to file, and businesses needing to correct or add information to reports already filed will have 30 days to do it.

The Ohio Society of CPAs will continue to provide updates to members whenever there are new developments on this issue. In addition, be sure to check OSCPA’s website for BOI learning opportunities. OSCPA hosted a webinar titled

4 | CPA Voice

“Navigating the Corporate Transparency Act – Essential Guide for CPAs on Beneficial Ownership Reporting” on Jan. 22 that should be available on-demand.

An important first step is consulting with the commercial provider of your professional liability insurance. AICPA partnered with Aon to put together a Risk Alert to provide information on the CTA and some of the potential professional liability ramifications to CPAs. This Risk

Alert does not provide legal analysis or legal advice, but instead general facts and risk management advice on some anticipated situations CPA firms may face.

In November, OSCPA joined numerous other business groups in supporting the extension of the BOI reporting rule deadline by one year. As a result, Congress in December passed H.R. 5119, the Protect Small Business and Prevent Illicit Financial Activity Act, but the U.S. Senate failed to take up the legislation prior to Jan. 1.

The letter to the Treasury's Financial Crimes Enforcement Network (FinCEN) also recommends expanding the applicability of the deadline to include not only new entities created in 2024 but all entities created thereafter, as well as entities making updates or corrections to their original filings.

FinCen did amend the BOI reporting rule to extend the filing deadline for entities created or registered during 2024 from 30 days to 90 days. However, this change offers relief to only a limited number of filers in the first year of implementation.

In August, OSCPA called on federal legislators to support two bills that have been introduced – Senate bill S. 2623 and companion legislation in the House, H.R. 4035, the Protecting Small Business Information Act of 2023.

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JANUARY | FEBRUARY 2024 | 5

CAREER center The email efficiency tricks you're missing

By Jessica Salerno-Shumaker, OSCPA senior content manager

When it comes to managing email, Randy Dean says people are making one common mistake. training on the best way to use it. And because email is so common, companies rarely take the time to train their people on how to be more efficient in the program.

Dean said to better manage your day, focus on using the five main functions of Microsoft Outlook together strategically: email, calendar, contacts, tasks, and notes. Understanding the full capabilities of each function can allow you to choose what works best for you.

Generally, his audiences are more comfortable with email, Dean said, than tasks or notes. But exposing people to everything each program can do is important.

“A lot of people just don't realize what's under the hood,” Dean said.

One of the more popular techniques he shares is the ability to take information from an email and quickly turn it into a calendar contact or task. It’s a trick that saves time, and he says people are surprised they didn’t know about it earlier.

Dean said he also understands that all the capabilities of the program might not make sense for every person, such as using the Microsoft Outlook task list when they’d rather write a to-do list on a physical piece of paper.

“People are far too reactive,” he said. “They're responding immediately to that meeting request on their calendar and emails coming in, and they're not getting in front of their own workflow.”

Last fall, Dean, a time management speaker and trainer, presented “Outlook Efficiencies and Productivity” at the Ohio Accounting Show where he covered Outlook tools, strategies to customize the Outlook experience and building a more efficient process.

He said that many professionals spend 25-50% of their day in their email, but most likely have never gotten formal 6 | CPA Voice

“I want to show people how they can get significantly more strategic, and hopefully a bit less distracted, in terms of how they're using their Outlook programs,” Dean said.

“This way you can use these programs more efficiently and productively.”

Jessica Salerno-Shumaker is the senior content manager at OSCPA.

Learn more from Randy Dean in the On-Demand course “Taming the Email Beast” available in MyOSCPA at ohiocpa.com/myoscpa.

On-Demand Access Pass is for planners and procrastinators alike.

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Land the perfect professional connection Whether you’re still basking in the glow of passing your CPA exam, a mid-level manager who needs a change, or a seasoned CFO who wants top talent, the OSCPA Career Center is your one-stop-shop to uncover rewarding careers and discover untapped talent.

Employers: • Post jobs • Review resumes • Screen candidates • Expand your reach with enhanced posting options • Explore our recruitment and retention resources Job Seekers: • Search for jobs • Customize your job alerts • Post resumes anonymously • Save resumes and cover letters on your dashboard • Access videos and articles on interviewing, resume writing and more • Get free interview coaching via email or more personalized coaching for a fee

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JANUARY | FEBRUARY 2024 | 7

DIVERSITY, equity & inclusion

DEI: Meaningful change requires an ecosystem

By Andrea Wright, CPA, partner, Johnson Lambert LLP

Cultivating a diverse and inclusive workplace requires commitment. Is your organization up to the challenge?

The concept of diversity, equity, and inclusion (DEI) can be traced back to the civil rights movement of the 1960s, where advocates fought for equal rights and an end to racial segregation. The nonviolent protests of this pivotal era sparked conversations about justice, fairness, and inclusion in all aspects of society, including the workplace.

Over the subsequent decades, DEI evolved and expanded beyond racial diversity and equity to include gender, sexual orientation, age, disability, and more.

8 | CPA Voice

The murder of George Floyd in May 2020 ignited the societal DEI conversation in a way that we hadn’t seen since the 1960s. In the weeks and months that followed, DEI became the cornerstone of business practices, aiming to create a workplace environment in which every employee feels valued, respected, and empowered, regardless of their background. During this time, managing partners and CEOs signed DEI pledges, companies hired DEI consultants, chief DEI officers were hired en masse, recruiting and training

budgets were increased, and much more. Fortunately, after three years of intense focus, we’ve learned a few things: • The journey toward DEI is long and evolving, rooted in historical context and societal shifts.

• Employees haven’t been satisfied with a “lip service” approach to DEI. • While representation and training are important elements of a healthy DEI environment, they represent only a small section of the DEI ecosystem.

If these lessons have taught us anything, it’s that DEI is a continuous endeavor—it can’t be done piecemeal. However, there’s one strategy that organizations can adopt to drive meaningful DEI changes—a commitment to building a DEI ecosystem.

Of course, building a DEI ecosystem won’t be without its challenges. Employees who view these efforts as forced or unnecessary will resist, and unconscious biases and deeply ingrained cultural norms can hinder these initiatives. For some organizations, acknowledging the need for change and fostering an environment of open dialogue will be their first steps toward creating a more inclusive workplace.

Though I believe that organizations who are ready and willing to “level up” on their DEI efforts can get there.

So, how can organizations build a DEI ecosystem? It starts with these foundational steps: • Transforming systems, policies, and practices. Review and update your policies and practices to ensure they’re fair and inclusive for all employees. This may include flexible work arrangements, family support, parental leave, and/or accommodations for individuals with disabilities.

• Training and coaching staff. Provide ongoing training opportunities to raise awareness about unconscious biases, stereotypes, and microaggressions. This training should empower employees to recognize and address these issues. Additionally, these trainings should include a robust coaching program that provides support and training for employees from underrepresented groups to ascend into leadership positions, fostering a more diverse leadership team.

• Equipping the C-suite with inclusive leadership skills.

Having a top-down strategy for DEI is critical. Senior leadership must demonstrate a genuine commitment to DEI through their actions, policies, and decisions.

• Managing DEI fatigue, overwhelm, cynicism, and shame. Your organization should anticipate these feelings and sentiments and have a plan to manage them. Being clear with employees about a particular DEI issue your organization is facing, setting small goals with realistic expectations, and empowering your employees to take actions that move your DEI initiatives forward are all ways that can help you be prepared and respond to these matters.

• Building employee resource groups (ERGs). Establish ERGs based on shared identities or interests to provide space for your employees to connect, share experiences, and offer insights to one another.

• Recruiting and retaining underrepresented talent.

Revise and broaden your recruitment strategies to attract diverse candidates. To achieve this, consider expanding recruitment methods to include nontraditional sources, such as social media, alumni clubs, and affinity groups.

• Surveying employees. This can serve as a benchmark to measure progress from your employees’ viewpoints.

By conducting periodic surveys, you can track the effectiveness of your DEI initiatives and make an assessment as to whether those initiatives are having the desired effect.

• Having transparent metrics and accountability.

Set measurable DEI initiatives and regularly communicate progress to your entire organization. Take this step seriously and hold leaders accountable for achieving the goals set by the organization.

• Encouraging open communication. Create safe spaces for your employees to discuss DEI, including their concerns and experiences.

The DEI journey is just that—a journey. It’s ongoing and requires steadfast attention and effort to be meaningful. As your organization prepares for the changing demographics and disruptive trends that societal evolution promises to bring, operating within a DEI ecosystem may just be the competitive advantage you need to cultivate a diverse and inclusive workplace.

Reprinted with permission of the Illinois CPA Society.

By Andrea Wright, CPA, partner, Johnson Lambert LLP

JANUARY | FEBRUARY 2024 | 9

AUDIT & assurance

AI and the audit

By Laura Hay, CPA, CAE, OSCPA executive vice president

10 | CPA Voice

AI is revolutionizing audit solutions, but hang on for the ride as its integration continues to evolve, along with associated challenges and risks.

Read any promotional materials for audit software, and you will find that they now tout the inclusion of “artificial intelligence and machine learning.” Practically, what does this mean?

Early applications Early applications of technology “intelligence” were more automation than AI. Advantages included: • Helping to ensure that procedures were internally consistent, completed, and up to date with professional standards with no loose ends before closing the audit file • Automating data entry, workflows, account classification and annual roll-forwards with no lost data • Automating planning with linkage to audit procedures • Automatically incorporating industry-specific requirements • Streamlining financial statements and compliance reporting • Reporting and analytics on engagements to support monitoring

What does AI add to this picture?

Some things that AI does well and does quickly include: • Data analytics – analyzing and finding patterns or anomalies in large, complex sets of unstructured data, guiding auditors to areas that require closer scrutiny • Natural language processing – extracting relevant information from documents or contracts to quickly process large volumes of text • Risk assessment – accessing public databases to compare ratios to industry trends and historical data • Predictive analytics – modeling financial outcomes to help assess the reasonableness of management projections • Machine learning – enabling AI systems to iteratively learn from feedback on the relevance of results Integration of AI elements is relatively new but will accelerate swiftly.

Does this rapid evolution come with risks to audit quality?

Potential benefits to AI integration are easily seen, with the ability to improve effectiveness, reducing time and increasing accuracy. AI also has the potential to increase value of the audit through predictive analytics and the ability to anticipate challenges so that more timely solutions can be developed.

However, rapid adoption comes with risks, including: • Data security and privacy – participating in public databases or integrating public generative AI language models exposes the organization to risks of releasing private data or competitive intelligence, as well as new cybersecurity threats.

• Transparency and duty of confidentiality – consider the firm’s obligations regarding entering client data into third-party software or AI platforms, which may include a requirement for written disclosure and consent.

Establish best practices for informing the client if results are generated by an algorithm.

• Errors – undue reliance on automation can result in erroneous facts or decisions. Algorithm “opaqueness” refers to a loss of understanding of how outputs are derived, which can result in incorrect interpretations of results. Systemic risks can be introduced in design, and current AI models may struggle with significant disruptions or pivots in a business that impact comparability of data.

• Bias – how questions, instructions and feedback are structured can be skewed, and the way that results are interpreted is subject to confirmation bias. Thought needs to be given to how inputs and outputs are designed and managed to reduce bias.

• Human review – identify steps in the process that require “human in the loop” decisions. Those may include where “meaning” or judgement needs to be inserted or relevance/ applicability/preference needs to be assessed. Each step that requires human review requires the system to be understood by humans to take the next step. Selective human insertion is part of risk management of the activity, versus a fully automated hidden process.

JANUARY | FEBRUARY 2024 | 11

Mitigations for these risks can include robust IT policies, including access, acceptable use and system audit policies.

Non-technical mitigations include training, diversifying the staff who work with the tools and contextual training on exercising appropriate skepticism.

A demand for technology-enabled assistance in the profession is also a call for responsible AI adoption. CPAs possess important skills in developing the standards for responsible AI development with sufficient protections for end-users, data integrity and quality.

Can AI assist with improving fraud detection?

Additional Resources

AI tools can detect file tampering, alteration of images (including deepfakes) and unexpected behavioral patterns.

Improvements in data analytics and risk assessments discussed above will help auditors focus attention on highrisk areas and irregularities, reducing the risk of missing material misstatements and increasing fraud detection.

AI allows for more continuous monitoring and detection of risk factors.

AICPA’s resource center for AI in the accounting and finance professions can be found at cpa.com/gen-ai.

Watch and learn more on this topic at ohiocpa.com/myoscpa with these courses: • An Introduction to A.I. and ChatGPT for CPAs (free to members) • Mastering the A.I. Wave: 8 Strategies for CPAs to Enhance Productivity

However, fraud patterns are constantly evolving to stay one step ahead of current implementations. Research in behavioral analytics will continue to be a growth area for fraud detection and prevention.

Will audit be replaced by AI? While AI is transforming the audit, it’s unlikely to replace it due to the need for professional skepticism, judgement and critical thinking. Human auditors can apply contextual knowledge, analyze complex information, assess non-verbal cues and ethical implications, and engage with clients and users. However, auditors who are adept at using AI are likely to gain efficiencies over those who are not, pointing to the need for continuous upskilling and reskilling of teams. Humans will also continue to develop the technology parameters for effective audit systems, conduct system audits and provide adaptability for significant environmental changes.

Laura Hay, CPA, CAE, is the executive vice president of The Ohio Society of CPAs and the staff liaison to the Accounting, Auditing, Professional Ethics Committee and Peer Review Committee. She can be reached at Lhay@ohiocpa.com or 614.321.2231.

THREE THINGS arly applications of 1. Etechnology “intelligence” were

otential benefits to AI 2. Pintegration are easily seen,

more automation than AI, with advantages such as helping to ensure that procedures were internally consistent and automating data entry.

with the ability to improve effectiveness, reducing time and increasing accuracy.

12 | CPA Voice

uditors who are adept at 3. Ausing AI are likely to gain efficiencies over those who are not, pointing to the need for continuous upskilling and reskilling of teams.

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JANUARY | FEBRUARY 2024 | 13

BUSINESS management & strategy

Marijuana legalization in Ohio – What’s next?

By Justin P. Breidenbach, CPA, CFE, MAcc, assistant professor of accounting, Capital University

14 | CPA Voice

Marijuana legalization in Ohio has gone through an evolution in the last decade.

In 2015, Ohio voters rejected a recreational marijuana legalization initiative which was criticized for its plan to create an oligopoly that would limit the number of businesses to operate in the market. Then, in 2016 House Bill 523 was signed into law by Governor John Kasich which legalized medical marijuana. It wasn’t until 2018 that Ohio’s Medical Marijuana Program became operational. Between late 2018 and November 2023, Ohio has had $1.57 billion in medical marijuana product sales. For comparison purposes, Michigan passed an initiative in November 2018 to allow recreational marijuana sales and the state recorded $2.3 billion in sales in 2022. Michigan is currently on pace to sell over $3 billion in marijuana products for 2023.

On Nov. 7, 2023, Ohio voters were presented with a citizeninitiated statute, known as Issue 2, to legalize recreational marijuana at the state level. Issue 2 was supported by voters by receiving just under 57% of “Yes” votes. Generically, Issue 2 allows for the sale, purchase, and possession of recreational marijuana for adults who are at least 21 years old. However, numerous other components come with Issue 2 which are being debated by state politicians.

On Dec. 7, 2023, 30 days after the passage of Issue 2, adults were legally allowed to grow and possess marijuana.

However, at the time of publishing this article, there is no mechanism to purchase marijuana legally in Ohio. While confusing and frustrating to some, this is nothing new. Just like other states who have gone through the legalization process, the broad strokes get created, but the operational details for a state-legalized marijuana market take time.

Due to Issue 2 being a citizen-initiated statute, the Ohio Legislature can amend the parameters. Many with experience in state-legalized markets expected there to be debate from politicians and changes to Issue 2. However, timing becomes a priority for getting the state-legalized market operational. Delays can allow for non-regulated marijuana transactions to flourish.

Based on bills moving through the Ohio House and Senate and political commentary, Ohio will see changes to the original language in Issue 2 and its implementation. While I don’t have a crystal ball when it comes to regulatory changes, I’ve outlined some of the primary components of the original language in Issue 2 and changes. Ohio is moving into new territory, and more than likely, changes will continue throughout the future when it comes to the regulation of recreational marijuana.

Original language in Issue 2 • Possession limit of 2.5 ounces of cannabis flower and 15 grams for extracts.

• THC levels set at 35% for plant material and 90% for extracts.

• Home growing of six plants per person or 12 plants per household if two or more residents are at least 21 years of age.

• Sales of recreational marijuana could occur as soon as nine months from the passage date of Issue 2.

• Tax rate of 10% on top of already existing sales tax.

• Tax distribution of 36% to Cannabis Social Equity and Jobs Fund, 36% to the Host Community Cannabis Fund, 25% to Substance Abuse and Addiction Fund, and 3% to Division of Cannabis Control and Tax Commission Fund.

Changes being discussed to Issue 2 • Possession limits remain the same.

• THC levels remain at 35% for plant material but reduced to 50% for extracts.

• Home growing up to six plants per household.

• Sales of recreational marijuana could occur immediately in which those who are at least 21-years-old could go directly to an existing dispensary and buy product.

• Tax rate of 15% on top of already existing sales tax, and local governments and local counties can levy an additional marijuana excise tax of 3%.

• Tax distribution of 28% to County Jail Construction Fund, 19% to Department of Public Safety Law Enforcement Training Fund (or 16% if the marijuana expungement fund has ceased to exist), 14% to the Attorney General Law Enforcement Training Fund, 11% to the Substance Abuse Treatment and Prevention Fund (or 9% if the marijuana expungement fund has ceased to exist), 9% to the 988 Suicide and Crisis Lifeline Fund, 5% to the Marijuana Receipts Drug Law Enforcement Fund, 5% to the Marijuana Expungement Fund, 5% to the Safe Driver Training Fund, 4% to the Ohio Investigative Unit Operations Fund, 3% to the Division of Marijuana Control Operations Fund, and 2% to the Marijuana Poison Control Fund.

Ohio is now included in the 24 states, three US territories, and the District of Columbia that have legalized marijuana for recreational use. However, marijuana remains federally illegal and is currently classified as a Schedule I substance under the Controlled Substances Act.

JANUARY | FEBRUARY 2024 | 15

Due to the federal position on marijuana, this creates numerous hurdles for those operating a state-legalized marijuana business.

• Federal taxation is complex, and the effective tax is high due to IRC 280E. Nineteen states have decoupled from IRC 280E, but Ohio has yet to take the same action.

• Banking and traditional lending channels are difficult to secure. Some state-chartered banks and credit unions have entered the market. However, the list is still small and due diligence procedures and fees can be restrictive.

• Business-to-business services are limited as many businesses want to avoid getting involved with receiving funds from a federal illegal business enterprise.

• Licensing and general operating costs are higher than other industries, which limit profitability.

• Internal controls can be complex due to the general market and heavy cash sales, especially for retailers/ dispensaries.

Accountants and business professionals working in the marijuana industry need to stay on top of constantly changing regulations, review and make changes to internal controls to eliminate or mitigate business risks to an acceptable level, analyze costs to properly allocate between inventoriable costs and selling, general and administrative costs to navigate IRC 280E, and plan for fast economic changes in the state market. I’ve seen many people get caught up in the “green rush” when a state first opens the doors to a recreational marijuana market. However, within the first few years, many states have seen supply exceed demand leaving many exiting the market through a heavily discounted sale or just closing the doors. While there can be rewards in the marijuana industry, there is still a lot of risk.

Besides accountants and other professionals staying up to date on the evolving market, many will need to do their homework to determine if this industry is a right fit.

Professionals should do the following before deciding to engage a client or provide services to marijuana businesses: • Consider risks based on the legal uncertainty and regulatory issues.

• Consider social and moral issues – determine reputational risks and relationships with new and continuing clients.

• Consult with an attorney.

• Consult with your insurer and review liability policy.

• Consult with your financial institution and review banking policies – remember that marijuana is federally illegal, and your bank may freeze or terminate accounts due to receiving funds from marijuana businesses.

• Perform a comprehensive screening of prospective and continuing clients.

• Don’t provide any work until a detailed engagement letter has been executed.

This list is not all inclusive, but should serve to provide important considerations to accounting professionals.

Justin P. Breidenbach, CPA, CFE, M.Acc is an assistant professor of accounting at Capital University, and is the owner of Breidenbach Consulting Services LLC. He instructs courses relating to financial accounting, taxation, and audit & assurance services. His current academic research and consulting services includes work within the state-legalized marijuana industry to help companies improve as it relates to general operations, internal controls, taxation, regulation, employment, banking, insurance, financial sustainability and pricing.

THREE THINGS etween late 2018 and 1. BNovember 2023, Ohio has had $1.57 billion in medical marijuana product sales.

16 | CPA Voice

on bills moving through 2. Btheased Ohio House and Senate and political commentary, Ohio will see changes to the original language in Issue 2 and its implementation.

ccountants and business 3. Aprofessionals working in the marijuana industry need to stay on top of constantly changing regulations.

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TALENT management & human resources Ohio Accounting Talent Coalition takes aim at talent deficit OSCPA staff report

18 | CPA Voice

The accounting talent shortage in Ohio is at a critical point that requires a bold and all-handson-deck approach to resolve, and OSCPA is leading the charge to make it happen.

AICPA estimates that nearly 75% of the CPA workforce met the retirement age in 2020. And non-Boomers are leaving, too. More than 300,000 U.S. accountants and auditors exited the profession over the last two years. According to OSCPA’s analysis of data from the Accountancy Board of Ohio, the talent shortage in Ohio will become especially severe in the coming years. Of Ohio’s registered CPAs, more than 45% are 60 years old or older, and nearly two-thirds are over 50.

Immediate action needs to be taken to solve the shortage, and it can’t be done in piecemeal efforts. OSCPA is uniquely positioned to mobilize essential stakeholders to act and harness the collective knowledge and resources of organizations already working to address talent gaps.

This collaborative approach will accelerate the Society’s ability to address the profession’s talent deficit.

Between March and September 2023, OSCPA connected with key stakeholders in the business, education, nonprofit, and government sectors as well as students and young CPAs to get their perspectives on the accounting profession, the talent issue, potential solutions, and the scaffolding for the talent action plan. The final framework is the culmination of those discussions, representing a collective view of the work required to change the trajectory of the profession’s future: • Collaboration to establish a well-resourced and highly connected industry sector partnership to manage Ohio’s accounting workforce talent strategy. To lead that transformation across such a diverse state requires an industry sector partnership so that there is a solid infrastructure for coordinated effort, greater alignment, minimization of duplication of effort, and additional funding avenues.

• Messaging that changes how accounting’s story is told, where it’s told, and by whom, to shift perceptions of the profession, drive engagement from the most critical stakeholders, and refill the talent pipeline.

• Curriculum that provides engaging educational experiences that accurately reflect the work of accounting professionals. Accounting taps into a broad range of skills and engages in the issues most pressing to business.

• E xperience that increases attraction to and retention of people by providing engaging and meaningful work experiences and cultures that match the story accounting tells. Accounting’s story needs to be well-lived and well-told. Authenticity and transparency, key values of Gen Z and Gen Alpha, will not allow for anything else.

• Pathways that remove unnecessary barriers to entry and increase opportunities for individuals to pursue accounting careers and CPA licensing. Accounting careers need to be more accessible to a broader audience, and there needs to be a change in how young professionals and untapped talent make their way into the accounting profession.

Over the course of the year, CPA Voice will continue to explore each of these areas and is starting with the first step: the collaboration required to execute this strategy.

JANUARY | FEBRUARY 2024 | 19

Accounting isn’t the only area impacted by the talent shortage Organizations of every size and sector in Ohio are being impacted by significant workforce challenges as demand for skilled workers continues to outstrip the available supply.

The Ohio Chamber of Commerce’s “Blueprint for Ohio’s Economic Future” identifies several key factors contributing to Ohio's workforce supply challenges, including a decline in the working-age population, brain drain, lower labor force participation, and a smaller concentration of STEM workers.

Ohio’s birth rates have—until recently—declined to a greater degree than the rest of the nation. Ohio’s high school enrollment has been declining since 2006. There has been a steady decline in college enrollment since 2020. While some of the decline may be attributed to the pandemic, more and more students are considering careers in the skilled trades.

This data demonstrates that OSCPA alone cannot solve the talent shortage, it’s simply too large and too complex. That’s why we’re working to build a broad coalition of individuals and organizations committed to actively engaging in the work needed to resolve the shortage, named the Ohio Accounting Talent Coalition.

20 | CPA Voice

How do I become part of the Ohio Accounting Talent Coalition?

To join the coalition, OSCPA has a commitment process with a clear definition of the level of engagement members need to have with the society, the coalition and the Ohio CPA Foundation. To learn more about what’s required to join please contact Tiffany Crosby, tcrosby@ohiocpa.com, or Lori Brown, lsbrown@ohiocpa.com.

Next steps in collaboration OSCPA is actively recruiting organizations for the coalition and will host periodic coalition informational meetings for leaders interested in learning more about the commitment.

Coalition members will benefit by being able to leverage existing infrastructure, having access to a workforce development hub for resource sharing, networking events, conferences, and forums where professionals from different companies share their experiences, challenges, and success stories.

The coalition will work across the talent pipeline continuum engaging with all stakeholders to execute the recently published comprehensive accounting workforce strategy.

Real-time data will continue to inform the strategy. As updated information on workforce data such as pipeline trends, demand analysis, and skills gaps is received and shared with coalition members, their feedback will enable adjustment of the strategy.

Continue to read CPA Voice to learn more about the next steps in the action plan to address the talent shortage.

THREE THINGS ICPA estimates that nearly 1. A75% of the CPA workforce met the retirement age in 2020.

of every size 2. Oandrganizations sector in Ohio are being impacted by significant workforce challenges as demand for skilled workers continues to outstrip the available supply.

across all sectors is 3. Ckeyollaboration to solving the talent shortage for accounting and Ohio.

JANUARY | FEBRUARY 2024 | 21

RISK management & fraud

Are we still dodging that recession bullet?

By Chris Kuehl, Ph.D., co-founder and managing director of Armada Corporate Intelligence

22 | CPA Voice

Before we wade too deep into all this forecasting and prognosticating, it is a good idea to remember the comment made

by John Kenneth Galbraith, “The only function of economic forecasting is to make astrology look respectable.” This is not so true.

The fact is that forecasting the economy is studying a constantly moving target. It is, after all, based on human behavior and there is little that is more variable than that.

For the last two years, there has been an assertion that recession was imminent, but the economy has been able to consistently dodge that particular bullet. The burning question is whether this pattern can be maintained. Lately, there have been more reasons to worry. There seem to be at least five reasons to think that a recession could occur in the future. By the same token, there are reasons to assume the avoidance of recession will continue.

One important caveat should be issued at this point. The U.S. economy is enormous—the largest in the world and by a very considerable margin. Every state in the nation has a GDP that compares to a national GDP. Missouri has the same GDP as Vietnam, Illinois compares to the Netherlands, Kansas to Ukraine, Iowa to Greece, and so forth. What this means in terms of recession and the economy is that the United States never really experiences a universal recession.

There is always a part of the country that is growing and a part that isn’t. There are industries that are robust and industries that are weak as the U.S. system is extremely diverse. What the United States gets are sector recessions.

Given this, what are the factors that have started to create some deeper levels of concern?

Calls for a soft-landing peak just before a hard landing.

It has been compared to the athletic director praising the football coach just hours before firing him. The assertions of an end to the recession threat seem to encourage people to quit worrying about it. One can look at the decisions to shut down the government and launch major strikes as an example. It seems that people tend to relax their vigilance and assume that the “soft landing” is a given. The combination of strikes and a government shutdown has the potential to peal as much as a full point off GDP growth, and if the estimate for that growth is only around 2% to begin with, these actions could tilt the balance. The UAW strike alone cost the economy $10 billion a week.

Fed hikes are about to hit hard. Now is not the time to go into gory detail on economic theory, but there are many who assert that the neutral Fed Funds Rate is not 1% but 2%. This means that Fed Funds rates above 2% are enough to slow the economy and rates below 2% are enough to stimulate. If the neutral rate was still 1%, the Fed started to restrain the economy in 2022; but if the neutral rate is actually 2% that impact from rate hikes didn’t start until February of 2023. The economy has not responded to the rate hikes that strongly as of yet. The level of unemployment is still very low, and that is generally what the central banks look at to determine whether they have made an impact.

The mantra is that central banks like the Federal Reserve will raise rates until they break something and then they will set about lowering rates to fix what they broke. It is the job numbers that generally indicate whether something has broken. There is most definitely a financial sector crisis brewing.

JANUARY | FEBRUARY 2024 | 23

NBER readings are signaling. The National Bureau for Economic Research is the arbiter of calling a recession, and they do not do this until there has been one. They do not say, “You are in a recession;” they tell you that you have been in one. But they look at a number of factors including measures of income, employment, consumer spending and factory output. All of these are starting to flash red to some degree. The challenge is that they have not been all that consistent. Income measures are down—roughly a third of the workforce is living paycheck to paycheck as inflation has affected them. Other indicators are not so clear. Consumer spending has been holding up, and early indications from the retail community are pretty solid. Halloween is now the second largest spending holiday in the year and the average consumer lays out $400 on it. Thus far, these numbers look decent and that would seem to promise a good holiday season. Employment has also been a pleasant surprise with the recent addition of 339,000 jobs. The expectation was that job numbers would come down, but they didn’t, and the jobless rate has stayed at 3.8%—even with more people moving from the U-6 designation to U-3 (moving out of the “discouraged worker” classification to one where they are actively seeking work.)

24 | CPA Voice

Household spending is deteriorating. There have been many jokes regarding the impact of Beyonce and Taylor Swift, but the reality is that consumers have been spending aggressively and running up their debt. There is over $7 trillion in credit card debt right now and $70 trillion in total consumer debt. This has started to dry up, and when the consumer can no longer afford to spend $500,000 on concert tickets the economy loses a major driver. Spending habits shift dramatically from one cohort to another. The Boomers have been pretty profligate through the years, but they are now in their frugal period to some degree. The Gen-Z cohort is perhaps the most constrained as they are not in their prime earning years and are carrying major debt loads from credit card use, student loans and the overall impact of inflation. The generation that is carrying the consumption load is the Gen-X crowd but that is the smallest cohort and can’t realistically carry the whole burden. All eyes are now fixed on the Millennials. They are now the largest cohort (as the Boomer population declines), and they are just entering their prime earning years.

Banks tighten credit. The data from the senior loan officers shows that over half are seriously restricting loans and at a pace not seen since the 2008 financial crisis. The inability to borrow was what triggered that recession as business could not invest and could not hire. The tightening has not reached the shutdown stage and probably will not, but banks are not leaning toward risk. The bank crisis earlier in 2023 triggered a lot of concern over the issue of “duration risk.” The bond market has changed a great deal and that stresses the financial system. There is still a great deal of money ($2.5 trillion) in the “shadow banking system.” These non-bank financial intermediaries are still pumping cash into the system and that makes the Fed’s job tougher. But it also means there is still cash to support record levels of corporate investment triggered by expansion of automation and robotics.

Bottom line? Seems to be a 50-50 proposition regarding recession in 2024. There are factors that will trigger sector recessions in areas such as single-family housing, development of office space and expanded retail. The auto sector will suffer from the strikes, and there could well be an impact from strikes in the healthcare arena. The west coast and urban areas in general are losing population at a rapid clip, but there are major gains in the middle of the country and in the southeast.

Reprinted with permission of the Missouri Society of CPAs.

Chris Kuehl is the co-founder and managing director of Armada Corporate Intelligence in Kansas City, MO.

THREE THINGS U.S. economy is enormous— 1. Tthehelargest in the world and by a very considerable margin.

has increased with 2. Ethemployment recent addition of 339,000 jobs. The expectation was that job numbers would come down, but they didn’t, and the jobless rate has stayed at 3.8%.

here are factors that will 3. Ttrigger sector recessions in areas such as single-family housing, development of office space and expanded retail.

JANUARY | FEBRUARY 2024 | 25

2023 Annual Report

A Year in Review

26 | CPA Voice

Dear Colleagues: Protecting and promoting the accounting profession, the CPA credential, and the Ohio business environment have always underpinned the work of The Ohio Society of CPAs and Ohio CPA/PAC. Throughout 2023, our efforts on this front took on a greater sense of urgency in the face of the growing accounting talent shortage.

Ohio has taken a leadership role in advancing the national conversation on what is needed to open wide the doors to our opportunity profession. While some may view our efforts as bold, OSCPA sees considerable value in spurring open and honest dialogue on an issue that impacts businesses of every size and sector. The Ohio Society believes it is essential to explore all possible options to address the talent supply gap, including legislative and Scott D. Wiley, CAE President & CEO

regulatory ones.

The talent shortage isn’t the only threat facing Ohio’s accounting profession. Perennial risks lurk everywhere, from attempts to expand the sales tax on professional services to efforts to negatively alter the Business Income Deduction. A robust war chest—the Ohio CPA/PAC—is the insurance policy we need to protect our professional interests and ensure success in our efforts to position Ohio as a pro-business state. Your voluntary donation to Ohio CPA/PAC enables us to support business-friendly state legislators, statewide elected officeholders, and candidates for those state-level races who know what’s at stake and are willing to stand up for us.

Ohio CPA/PAC plays a vital role in advancing an agenda that aims to open the profession to more people, protect the public interest, preserve pro-business policies, and ensure a more competitive economic environment in our state. Your contributions to the PAC fuel our advocacy engine, amplifying our voice and fortifying our influence in championing policies that safeguard our profession's interests and the interests of those you serve.

Mark LaPlace, CPA Ohio CPA/PAC Chair

Thank you for your support, dedication, and belief in the power of advocacy.

Sincerely,

Scott D. Wiley, CAE President & CEO

Mark LaPlace, CPA Ohio CPA/PAC Chair JANUARY | FEBRUARY 2024 | 27

Opening Doors to the Profession The ability to hire and retain skilled accounting talent is one of the top challenges facing the CPA profession. Ohio is a microcosm of this growing dilemma. An analysis of Accountancy Board of Ohio data on CPAs registered in the state found that nearly 45% of registered license holders in Ohio are aged 60 or older, and more than 65% are over the age of 50.

Of the more than 36,000 CPAs registered in Ohio, only 18,776 are active license holders and nearly 50% of them are over the age of 50.

Ohio CPA License Holders CPAs Registered in Ohio

CPAs by Age 14%

18%

30-40

32%

All others

70+

14% 52%

Active CPAs

30-40

14%

26%

40-50

16%

60-70

22%

Inactive CPAs

50-60

Source: Accountancy Board of Ohio data current as of 4/4/2023.

Active Status Ohio License Holders Active Status by Age 6% 10% 20-30

70+

19% 23%

60-70

30-40

18,776 Number of Ohio CPAs with Active Licenses

23% 19%

50-60

40-50

Source: Accountancy Board of Ohio data current as of 4/4/2023.

Throughout 2023, OSCPA championed a number of legislative and regulatory initiatives aimed at removing barriers on the path to licensure for those interested in pursuing the CPA credential:

• Supported efforts by the Ohio Legislature to simplify reciprocal licensure, ensuring license holders from other states can relocate to the Buckeye state without unnecessarily burdensome red tape.

• Encouraged Ohio lawmakers to remove the residency requirement, easing the ability for CPA candidates across the country to sit for the CPA Exam in Ohio and/or obtain their license in our state. This provision was adopted into law in 2023.

“The Ohio Society is doing great things to literally re-shape our profession and help it become even better! My eyes have been opened wide to the huge efforts OSCPA has been doing not only in the education field, but also in the legislative and professional field.”

– Jonathan Mitchell, CPA, MBA, department chair, Stark State College

• Urged the Accountancy Board of Ohio to extend the testing window from 18 to 30 months to give candidates an extra year to pass all four parts of the CPA Exam.

• Advocated for the Accountancy Board of Ohio to restore credits for all parts of the CPA Exam that may have expired during the pandemic.

28 | CPA Voice

Advocating for a Predictable

Ohio Tax Climate A fair and stable tax climate in Ohio creates an environment that is conducive to sustainable economic growth, job creation, and enhanced quality of life for its residents. In 2023, OSCPA’s government relations team chalked up a number of solid victories on behalf of Ohio’s citizens and businesses: • Pushed for a reduction in Ohio’s income tax brackets from four to two.

• Lobbied to exempt from CAT all taxable gross receipts of $3 million or less (for tax periods beginning in 2024), and then exempt taxable gross receipts of $6 million or less (for tax periods beginning in 2025), exempting nearly 90% of all Ohio-based businesses from the CAT. • Championed limits on late filing penalties for municipal tax, collectively saving Ohio taxpayers hundreds of thousands annually.

• Drove efforts to allow businesses with remote/hybrid employees or owners to use a modified apportionment formula for municipal net profits tax, relieving many Ohio businesses of substantial compliance costs.

• Advocated for the resident tax credit for SALT cap deduction taxes paid to other states, authorizing pass-

through entity (PTE) owners to claim a refundable credit against the owner’s Ohio income tax liability equal to the owner’s proportionate share of the tax paid by the PTE. • Pressed for state tax conformity, incorporating into Ohio law the Internal Revenue Code changes made since February 17, 2022, which incorporated federal tax provisions that were enacted as part of the Inflation Reduction Act and the Consolidated Appropriations Act, 2023.

“We appreciate OSCPA’s weekly communication on legislative developments and other news affecting the profession. The Ohio Society’s government relations team has been incredibly helpful in addressing issues that are impacting our clients. Their lobbying efforts to push for an increase in the CAT exemption limit in lieu of a rate reduction has benefitted many taxpayers in the state and lessened the burden on small businesses.” – Adam Hines, CPA, JD inactive, tax partner, MMB CPAs & Advisors

Championing Economic and Workforce Development Efforts OSCPA has long encouraged Ohio lawmakers to take steps to advance the state of business in Ohio. As a result, we saw numerous provisions enacted in 2023 as part of the biennial budget bill, to better attract and retain a highly skilled workforce: • $600M for the creation and rehabilitation of housing to address shortages in Ohio.

• $25.2M per FY for the popular TechCred program to support Ohio workers in expanding their skills.

• $16M per year to encourage K-12 students to earn industry-recognized credentials.

• Childcare assistance for families earning up to 145% of the federal poverty level.

Strengthening economic development initiatives helps position Ohio to attract businesses and facilitate job creation. OSCPA pushed for several infrastructure projects to be included in the biennial budget bill to make the Buckeye state more business-friendly: • $750M in new All Ohio Future Fund – to support site infrastructure to attract new businesses and encourage workforce development across the state.

• Will use upcoming federal funds for broadband development and expansion in communities with limited internet access.

• $20M to implement the Ohio Work Ready Grant Program for community and regional college students and those attending state technology centers – up to $3,000 per student in programs leading to credential/degree aligned with in-demand jobs.

• $125M to establish innovation hubs near anchor research institutions to increase R&D, create new jobs, and preserve existing jobs.

• $100M in career-tech equipment grants and $200M in career-tech construction grants to address long waiting lists for education and training.

• Employing AI tools to identify outdated processes and unnecessary requirements in Ohio laws and rules.

Projected to save taxpayers $44M over the next 10 years.

JANUARY | FEBRUARY 2024 | 29

The Pillars of Effective

Issue Advocacy

EFFECTIVE ISSUE ADVOCACY Professional Lobbyists

Ohio CPA/PAC Contributions

(funded by your OSCPA membership investment)

Your informed voice on issues at stake

Your membership investment enables us to retain professional lobbyists who are highly skilled at assisting OSCPA in successfully navigating the legislative process. Your contributions to Ohio CPA/PAC help fund the important work OSCPA does to protect your credential, advance the profession, and advocate for a competitive business climate in Ohio. And the educated guidance you provide on the issues that matter allows OSCPA to push for the best outcome. All three elements are needed to achieve the right impact with those who can make a difference for us.

Lifecycle of a

Contribution

Members voluntarily invest in Ohio CPA/PAC

30 | CPA Voice

Ohio CPA/PAC Board strategically allocates funds to legislator campaigns

Ohio CPA/PAC builds allies at the Statehouse who support OSCPA’s interests

Ohio CPA/PAC strengthens your voice and influence

2024 OSCPA

Legislative Priorities OSCPA’s government relations team keeps its finger on the pulse of what’s happening on the legislative and regulatory front to protect and advocate for your interests, and advise you on issues impacting your license, your business, or those you serve.

There are several significant initiatives we’re driving and others that we’re monitoring during the second half of the 2023-2024 legislative session: • Championing accounting pipeline legislative and regulatory initiatives to attract and retain Ohio CPAs. OSCPA is collaborating.

for commonly owned persons. These provisions have presented traps that were not intended by the General Assembly.

• Promoting a healthy tort reform climate in Ohio by retaining a common-sense civil justice system, seeking improvements and deterring harmful changes.

• Seeking legislative changes to repeal the marriage tax penalty (H.B. 199) - though an uphill battle due to the cost - by modifying the joint filing credit for taxable years beginning in 2024 and after. The goal is that impacted joint filers would not pay more income tax on their state return than they would if they filed separately.

• Supporting conforming legislation (H.B. 116) allowing taxpayers to deduct in a single year the full bonus depreciation and enhanced expensing allowances the taxpayer deducts for federal income tax purposes. A separate effort seeks to treat the add-back as business income. The high upfront cost (est. $500 million) makes this a stretch goal.

• Advocating for changes to the CAT combined (mandatory) and consolidated (elective) filing methods

• Pursuing passage of House Bill 138, which would classify guaranteed payments paid to pass-through entity (PTE) investors, regardless of their ownership interest, as “business income” and therefore eligible for the business income deduction (BID) and flat income tax rate.

Advancing the State of Business “I am grateful for OSCPA’s proactive approach to ensuring lawmakers are informed on complex issues and well-balanced approaches. Their government relations team is nothing short of top-notch.” – Ohio Rep. Bride Rose Sweeney, D-16

OSCPA and Ohio CPA/PAC work in tandem to drive a better legal, legislative, and regulatory climate for CPAs and businesses in our state. Every dollar of your contribution helps us support the election of lawmakers and regulators who understand the value CPAs contribute to the public and the economy.

2023 Financial Overview $105,318

800

$111,573

785

$71,049.69

66

Amount Ohio CPA/PAC raised in 2023

Amount Ohio CPA/PAC raised in 2022

Amount disbursed to support campaigns of legislative candidates who support issues of importance to OSCPA and its members.

Individuals who contributed in 2023

Individuals who contributed in 2022

Number of legislators Ohio CPA/PAC supported in 2023.

JANUARY | FEBRUARY 2024 | 31

Your 2023 Ohio CPA/PAC

Board of Trustees

Mark LaPlace, CPA Chair

Jane Pfeifer, CPA Treasurer

Jeff Brooks, CPA Trustee

Ann Gabriel, CPA, PhD Trustee

Ranjan Manoranjan, CPA Trustee

Jacob Nix, CPA, CISM, CISA Trustee

Owen Wyss, CPA Trustee

Matt Yuskewich, CPA Trustee

Your OSCPA Issue Advocacy Team

Scott Wiley, CAE President & CEO

Laura Hay, CPA, CAE Executive Vice President

Barbara Benton, CAE Vice President, Government Relations

Gregory Saul, Esq., CAE Director, Tax Policy

Thomas Zaino, JD, CPA Outside Legislative Counsel Zaino Hall & Farrin LLC

Brian Perera Outside Legislative Counsel Zaino Hall & Farrin LLC

32 | CPA Voice

Thank you to Our Contributors – 2023 Ohio CPA/PAC is key to The Ohio Society’s successful track record in driving meaningful legislative and regulatory change.

Your contributions are essential in helping lawmakers see what you already know—that our profession is changing business, for good. OSCPA educates and builds relationships with legislators and regulators to ensure the CPA profession always has a voice in the legislative process.

2023 Ohio CPA/PAC Firm Contributors* $15,000 or above Deloitte PAC KPMG LLP PricewaterhouseCoopers LLP Contributions of $500 or more Barbara Benton, Delaware Kyle Bickhart, Columbus Jeffrey Brooks, Hudson Darci Congrove, Columbus Deloitte PAC Robert Fay, Canton Todd Fentress, Westerville E. Ann Gabriel, Upper Arlington David Groves, Canton Steven Julian, Westerville Mark LaPlace, Plain City Norbert Lewandowski, Medina Ranjan Manoranjan, Columbus Donald Mellott, Cincinnati Fred Miller, Columbus Jay Moeller, Troy Jacob Nix, Cleveland Kerry Roe, Maineville Scott Wiley, Powell Constance Woods, Vandalia Owen Wyss, Columbus Contributions of $300 – $499 Patricia Basti, Mason Jillian Brown, Cincinnati Brian Campbell, Columbus Michael Comer, Cincinnati Tiffany Crosby, Dublin Leo DalleMolle, Cincinnati Benjamin Danhauer, Cincinnati Yatish Desai, Cleveland James DeSantis, Columbus Will Dokko, Columbus David Edick, Tampa FL Brian Foster, Cincinnati Emily Frolick, Cincinnati Nicole Hilbert, Broadview Heights Yusuke Imai, Powell Masahiro Inomata, Columbus Dipan Karumsi, Powell Robert Kitchen, Springfield Matthew Kramer, Columbus Anthony Lee, Columbus Marie Lenarduzzi, Cleveland John Lewis, Cincinnati Elizabeth L'Hommedieu, Washington DC Eric Logan, Cleveland Ronald Marcin, New York NY Chris McGee, Columbus Edward Metzger, Eden Prairie MN William Miller, Columbus James Mylen, Cleveland Heights Kari Palmer, Columbus Gianluca Pitetti, Lewis Center

$5,000–9,999

Clark Schaefer Hackett & Co. Rea & Associates, Inc.

Diane Powers, Cincinnati Jason Recard, Columbus Sanjay Sehgal, Solon Marybeth Shamrock, Strongsville Ashraf Shehata, Cincinnati John Snoble, Dublin Eric Sutphin, Westerville Brian Todd, Cincinnati Mark Welp, Blacklick Tiffany White, Columbus Adam Wieder, Beachwood Brian Yeager, Gates Mills Anne Zavarella, Columbus Kimberly Zavislak, Westerville Contributions of $100 – $299 Myles Abbott, Twinsburg Ron Antal, Stow Benjamin Antonelli, Dublin Jason Ashenfelter, Cleveland Christopher Axene, Dublin Karen Basa, Cleveland James Bechtel, Columbus Paula Bedford, Columbus Chris Beiswenger, Cleveland Mark Bellantoni, Cleveland Jeffrey Benton, Delaware Robert Beresford, Loveland George Bethea, Uniontown Sherri Blackwelder, Cleveland David Blasko, Canfield Michael Borowitz, Columbus Holly Bowman, Maumee Alex Boytan, Columbus Paul Breen, Columbus David Brink, Norwalk Barbara Bukovac, Cincinnati Stephen Bybee, Cincinnati Courtney Clark, Columbus Kenneth Clifford, Medway Timothy Copeland, Steubenville Maura Corrigan, Avon Gilbert Corwin, Lakewood Kenneth Couls, Hinckley Jennifer Couser, Cleveland Gregory Coward, Findlay James Creeden, Cincinnati Jason Crouch, Hudson Melissa Crowley, Canfield Janice Culver, Dayton Richard Dailey, Dayton Kevin Daly, Cleveland Sarah Daubenspeck, Cleveland Dustin Deck, Dayton Robert Deimling, Mentor on The Lake Joshua DeMarco, Cincinnati Christa DeWire, Columbus G. Michael Dickey, Delaware Vincent DiMascio, Cleveland

$1,000–2,499

GBQ Partners LLC Mellott & Mellott PLL Rehmann Sikich LLP

Dennis Dlugosz, Avon Nicholas Doland, Cincinnati Michael Dunn, Cleveland Charles East, Cincinnati Barry Edelstein, Avon Lake William Edwards, Mason Gene Elconin, Beachwood Michael Faillo, Newport KY Richard Fedorovich, Akron Gregg Feltrup, Cincinnati Michael Fleitz, Norwalk CT Paul Freeland, Batesville IN Brandon Gabel, Toledo Troy Gaerke, Plain City Thomas Gedelian, Munroe Falls Chad Gerhardstein, Cleveland James Gero, Independence Timothy, Gerspacher, Cleveland Brian Gothot, Westlake Margaret Gothot, Westlake Paul Gregory, Avon Robert Guido, Terrace Park Matthew Gutzwiller, Cincinnati Peter Hackett, Springfield Lori Hallmark, Xenia Thomas Hazelbaker, Middletown Bryan Heft, Columbus Okeva Hervey, Westerville Adam Hill, Cleveland Alan Hill, Mentor Cary Hines, West Chester Louis Homan, Dayton Katherine Hurley, Columbus Lowell Huth, Hinsdale IL Ann Johnston, Cincinnati Susmitha Kakumani, Cleveland Devesh Kamal, Springfield Terrence Kane, Cleveland Vaughn Kauffman, Cleveland Craig Keller, Columbus John Keller, Dayton Brian Kelly, Westlake Sean Kelly, Cleveland Brian Kennedy, Whitehouse James King, Lakewood Ranch FL Robert Kitchen, Fairborn Verne Klunzinger, Hinckley Brock Knisely, Cincinnati Jennifer Koder, Swanton Karie Kuns-Nguyen, West Chester David Lauer, Dublin Brittany Lawrence, Lakeside Park, KY Christopher Linck, Cincinnati John Lind, Columbus David Linich, Cincinnati Dennis Lloyd, Lancaster SC John Malloy, Parma Heights James Manley, Hudson

View the full list of individual contributors at

* In some cases, contributions are made by individual members and the organization is recognized for the total contribution. Ohio law prohibits the acceptance of corporate checks.

Craig Marshall, Plain City Suzanne McCann-Perry, Westerville Daniel McGill, Encino CA Michaela McGinn, Columbus Colin McHugh, Toledo John McKay, Cincinnati Scott McMillen, Cleveland Russell Meyer, Dublin Darrel Miller, Westerville Melvin Miller, Olmsted Township Samuel Milliron, Delaware Brian Mischel, Cincinnati Cora Mooney, Cleveland Anthony Morgan, Cincinnati Brian Mosier, Columbus Gregory Muresan, Cleveland D. J. Muse, Van Wert OH Murali Nallapaty, Cincinnati Jacqueline Neumann, Cincinnati Michael Niland, Cincinnati Terry Offenberger, Dayton Michael Olecki, Olmsted Falls Jason Padley, Cleveland Jason Palus, Independence John Parks, Dayton Michael Patterson, Saginaw MI Anthony Perazzo, Cincinnati Jane Pfeifer, Dublin Cassandra Pierce, Marietta Raul Pina, Columbus Gary Pogharian, Columbus Kelly Postlewaite, Cincinnati David Powell, Cleveland Lawrence Powell, Dayton Melissa Pozniak, Aurora Michael Pratt, Hudson Vicky Price, Columbus Kent Pummel, Springfield Virgil Puthoff, Beavercreek Robert Roll, Columbus John Rosan, Blacklick Brandon Roytberg, Richmond Heights Brian Rudzik, Chicago IL Gregory Saul, Gahanna Dario Savron, Kirtland Carl Scheiderer, Hilliard Michael Scheiding, West Chester Arthur Scherbel, New Albany Charles Schillig, Wakeman Pamela Schlosser, Pittsburgh PA Michael Schmidt, Cincinnati Adam Schultz, Avon Anthony Schweier, Cincinnati Sean Serba, Cincinnati Jewell Shane, Cincinnati Janice Shannon, Beavercreek

Daryl Sherred, Powell Lesa Shoemaker, New Albany Robert Sielschott, Lima Charissa Simmons. West Alexandria Akshay Singh, Cleveland Donald Sinko, North Olmsted Dennis Sklenicka, Westerville John Skolnicki, Tipp City Christine Slade, Toledo Erin Sleeth, Happy Valley OR Alan Solomon, Cincinnati Annette Spicker, Columbus Daniel Staley, Cincinnati Gregg Stark, Cleveland John Stieg, Columbus William Strasser, Cincinnati Kevin Sullivan, Cleveland Ryan Swincicki, New Albany Kevin Thomas, Chagrin Falls Marvin Thomas, Cleveland Robin Throckmorton, Cincinnati Douglas Torline, Cincinnati Steven Treppo, Cleveland Jarrod Trigg, Cincinnati John Troyer, Beachwood Chris Van Pelt, Cincinnati Tami Van Tassell, Upper Arlington Christine Vaughan, Dayton Linda Velandra, Ottawa Lake MI Randal Verhoff, Ottawa Joseph Voyles, Cincinnati Allen Waddle, Cleveland Theodore Wagner, Twinsburg Mark Walla, Toledo Joseph Waller, Mason Edward Walsh, Columbus Larry Warner, Liberty Twp Lawrence Weeks, Springfield Charles Weible, Broadview Heights Dale Welsh, Cincinnati Donald Wetzel, Stow Richard Wildermuth, Cincinnati James Will, Hudson Ellen Wisbar, Hudson Jessie Wright, Canfield Thomas Yakubowski, Brecksville Annie Yoder, New Philadelphia Jesse Young, Springfield Darin Yug, Cleveland J. Matthew Yuskewich, Columbus Thomas Zaino, Blacklick Adam Zelwin, Solon David Zentkovich, Columbia Station Erica Zoellner, Lebanon David Zuber, Cleveland

ohiocpa.com/Advocacy

MEMBERS in motion Lori Kaiser, CPA, CGMA, MBA, founder & CEO of Kaiser Consulting has transitioned to strategic advisor of Kaiser Consulting.

Michelle Cunningham, CPA, MT

Jesse LeBrun, CPA

Julie Li, CPA

BOSTON HEIGHTS Ron Antal, CPA, was elected mayor of the village of Boston Heights after having served on council for the past 12 years.

CLEVELAND HW&Co. was selected as the Best Accounting Firm (with more than 25 employees) for the 4th time in a row

by Ohio Business Magazine.

Julie Li, CPA, has been promoted to senior accountant at HW&Co. Sikich has signed an agreement to acquire the operating assets of Thornhill Financial, LLC. Maureen Aebi, CPA, Dustin Miller, Technology, and Joshua Vince, Technology were recently elected as partners of Sikich.

COLUMBUS Tracey Holecek, CPA, has been appointed to serve as managing partner of Kaiser Consulting.

Kaiser Consulting was awarded a #1 spot in Central Ohio’s 2023 Best Places to Work for the eighth time, receiving the top spot in the medium-company category.

MANSFIELD Michelle Cunningham, CPA, MT has been hired as senior manager at HW&Co. MIDDLEBURG HEIGHTS Jesse LeBrun, CPA, has been hired as senior manager at HW&Co. NEW YORK Cohen & Co. has acquired Szymkowiak & Associates CPAs and its sister company, Pear Consultants.

ADVERTISER INDEX p17 YSU Ethics &Services Economic Duffy+Duffy Cost Segregation

CPE Day May 10

8:00 a.m. – 12:00 p.m. | 4 credits

Don’t wait another minute to start living your best life. Join your peers for a day of insight and inspiration that will help you on the path to personal and professional fulfillment. Nationally known thought leaders will share actionable strategies and information to help you: • Begin living your best life • Understand how thoughts and feelings impact on your success • Transform busyness to productivity • Mind your mental health

KEYNOTE: Your Best Year Starts Today Shawna Suckow, CSP, CMP Global speaker, author, business coach

For more information, visit Sponsored by:

ohiocpa.com/BestLife or call 614.764.2727 (option 2 for Member Services) 34 | CPA Voice

July 18, 2024 9:00 a.m. – 3:00 p.m.

Virtual | 6 credits MULTIPLE

LEARNING events at a glance 2/15

12:00 p.m. – 1:00 p.m.

Town Hall 2024 – February

1 credit

MS

3/14

12:00 p.m. – 1:00 p.m.

Town Hall 2024 – March

1 credit

MS

5/23

8:30 a.m. – 4:30 p.m.

CORECon – Core Skills Conference

8 credits

MULTIPLE

6/18

8:30 a.m. – 12:00 p.m.

Real Estate Conference

4 credits

TX

7/18

9:00 a.m. – 3:00 p.m.

Women, Wealth and Wellness

6 credit

PD

8/22

8:30 a.m. – 4:30 p.m.

CORECon – Core Skills Conference

8 credits

MULTIPLE

8/27

8:30 a.m. – 2:30 p.m.

Fraud and Forensic Conference

6 credits

MULTIPLE

10/23-24

8:30 a.m. – 4:30 p.m.

October Accounting Show

16 credits

MULTIPLE

11/13-14

8:30 a.m. – 4:30 p.m.

November Accounting Show

16 credits

MULTIPLE

12/10-11

8:30 a.m. – 4:30 p.m.

2024 MEGA Tax Conference

16 credits

TX

Quarterly Ethics: Ohio Professional Standards & Repsonsibilities Mar. 21 | Jun. 13 | Sept. 26 | Dec. 13 8:30 a.m. – 11:15 a.m. | 3 credits

Employee Benefit Plan Audit Conference Apr. 26 | Virtual 8:30 a.m. – 4:30 p.m.

8 credits

AU

Strategic Finance & Accounting Conference

RE

Apr. 18 | Virtual 8:30 a.m. – 4:30 p.m. | 8 credits

MULTIPLE

Spring Advance 2024

Mastering the A.I. Wave: 8 Strategies for CPAs to Enhance Productivity

May 3 | May 8 | May 10 | May 14 SK 3 credits

On-demand video 2 credits

IT

COMPETENCIES Financial Accounting

Audit & Assurance

Business Management

Technology

Ethics & Professional Standards

Tax

Risk Management & Fraud

Essential Skills & Prof. Development

Talent MGMT & Human Resources

Multiple

CREDIT TYPE AC

TX

Accounting Taxes

Business BM Management & Organization

RE

Regulatory Ethics

BL

Business Law

AG

Accounting (Government)

BE

Behavioral Ethics

IT

Information Technology

AU

Auditing

EC

Economics

PR

Production

MS

Management Services

FI

Finance

HR

Personnel/ Human Resources

SK

Specialized Knowledge

PD

Personal Development

MULTIPLE

AV

Auditing (Government)

CA

Computer Software & Applications

CM

Communications & Marketing

ST

Statistics

Register today and find more events at

ohiocpa.com/Events24 Explore OSCPA competency framework at ohiocpa.com/CBL

JANUARY | FEBRUARY 2024 | 35

by CPAs for CPAs Accelerate your career and enhance your skills with quality learning from OSCPA. Choose from 9 core competencies to help you transform your skill set and compete in today’s crowded marketplace

Audit & Assurance

Business Mangement & Strategy

Essential Skills & Professional Development

Ethics & Professional Standards

Risk Management & Fraud

Talent Management & Human Resources

Tax

Technology

ohiocpa.com/CBL

36 | CPA Voice

Financial Accounting, Reporting & Analysis

THE OHIO SOCIETY OF CPAs 2023– 2024 BOARD OF DIRECTORS CHAIR OF THE BOARD

Libby Cullins, CPA, MBA JPMorgan Chase Columbus

PAST CHAIR

Craig Marshall, CPA Ernst & Young Plain City

CHAIR-ELECT

Rick Fedorovich, CPA Bober Markey Fedorovich Cleveland

PRESIDENT AND CEO

Scott D. Wiley, CAE The Ohio Society of CPAs Columbus

DIRECTORS Brandi Carson, CPA La-Z-Boy Inc. Toledo

Angela Lewis, CPA Crowe Columbus

Mark Welp, CPA, CFE Holbrook & Manter Columbus

Courtney Clark, CPA Deloitte Columbus

A’Shira Nelson, CPA Savvy Girl Money Cleveland

Ellen Wisbar, CPA Mayer Hoffman McCann, P.C. Cleveland

Chris Igodan Jr., CPA Nationwide Financial Columbus

Carolyn Smith, CPA, MBA, CRMA Member, Governmental Accounting Standards Board Columbus

Gregory J. Jonovich, CPA, MBA Materion Mayfield Heights

Amy Vetter, CPA, CGMA, CITP The B3 Method Institute & Drishtiq Yoga Mason

LATELY on the podcast Listen to the entire series wherever you get your podcasts!

The Ohio Society of CPAs podcast “The State of Business” releases new episodes on Wednesdays, covering the latest news impacting accounting professionals.

Episode title: How government relations efforts drive the business climate From the episode: “We're very involved with economic issues and driving the business climate in Ohio to make it stronger. Because businesses want to be stronger, and CPAs love to help businesses grow and thrive. When we go down to the Statehouse, we're speaking on behalf of lots of industries and the legislators know that.”

Barb Benton, CAE, vice president of government relations

ohiocpa.com/Podcast

MEMBERSHIP RENEWAL 2024

Accounting isn’t all ledgers, spreadsheets, and crunching numbers.

The profession has evolved, and we need your help to face the unique challenges ahead.

Technology has reshaped the accounting landscape, the skills gap is wider than ever, and a dwindling talent pool has left teams overworked. It sounds overwhelming, but as a distinguished accounting professional, you can help us grow the pipeline, advance your professional goals, and help shape Ohio’s economic future.

• Invest in your professional development that elevates your standing in the field.

• Contribute to building a robust and diverse pipeline for the profession.

• Become an integral part of OSCPA’s mission to create a thriving and sustainable future for accounting in Ohio.

ohiocpa.com/Renew24 Scan the QR code or call 614.764.2727, and join us in shaping the future of accounting, learning locally, and contributing to the growth and diversification of the profession.