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Survey says: Thumbs up!

It’s a great time to be an accountant.

New surveys and studies are showing just how attractive the accounting profession really is. More students are enrolling in college accounting programs. Hiring is reaching record levels. Salaries are going up. Accounting is the most profitable industry.

The American Institute of CPAs’ (AICPA) 2015 report on the supply and demand of accounting graduates, which covers the 2013–2014 academic year, found that a record number of students are flocking to the accounting profession.

Enrollment in college accounting programs reached an all-time high, with a 3 percent increase in bachelor’s program enrollments and a whopping 19 percent increase in master’s program enrollments.

Luckily, firms will be able to hire all these new recruits. There was an 11 percent increase over 2012 in hiring master’s degree recipients, and 5 percent growth in bachelor’s recipients. And firms believe these trends will continue — 91 percent expect to hire the same amount or more new graduates in the coming year.

The money is there. According to Sageworks, the category of accounting, tax preparation, bookkeeping and payroll services was the most profitable industry in the United States last year, with a net profit margin of 19.6 percent.

In its 2016 Salary Guide, Accounting Principals projects that accounting and finance salaries will grow 2.4 percent next year. And Robert Half anticipates average starting salaries for accountants will increase between 4 and 5.3 percent over last year. It estimates that starting salaries in public accounting will rise slightly more than corporate accounting salaries.

All of this good news equals increased optimism. Ranstad Professionals surveyed nearly 4,000 accounting and finance professionals, and 62 percent are very confident they could find a new job.

But that doesn’t necessary mean it’s easy for employers to secure the talent they crave. A 2015 AICPA survey found that 68 percent of finance decision-makers report strong competition for workers. The highest number, 43 percent, believe the talent pool has increased competition for good candidates. n THE CPA EXAM IS EVOLVING AND YOU CAN HELP:

The American Institute of CPAs (AICPA) is seeking comment until Nov. 30, 2015, on its exposure draft, “Maintaining the Relevance of the Uniform CPA Examination.”

The new Exam, launching in 2017, will better test high-order cognitive skills. The exposure draft is the culmination of in-depth research, critical data analysis, best practices in testing development and the collective thoughts of leaders in the profession. In the draft, you’ll find a summary of changes between the current Exam and the next version, as well as detailed information on the knowledge and skills to be tested.

Learn more on the CPA Exam changes and find the exposure draft at aicpa.org/ nextcpaexam. n

good to know...

Virginia is only one of four states that call themselves “commonwealths”; the others are Kentucky, Massachusetts and Pennsylvania. All four were originally colonies (though Kentucky was part of Virginia), and Virginia called itself a “commonwealth” before joining the United States. According to Wikipedia, “commonwealth” is a traditional English term for a political community that is founded for the common good. n

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EXCELLENT EXCEL >>

Visualize numbers by inserting Sparklines

Have you ever handed out a worksheet in a meeting with rows and rows of numbers and then watched each person try to review the numbers to determine if there any trends within each row or column? Help them by inserting a miniature graph next to each row or column so they can visualize what is happening within each. With Excel’s Sparkline tool you can insert a miniature graph that is the size of just one cell.

To insert a Sparkline, click on the cell where you want the graph. Then click on the Insert tab in your ribbon on top and select the style of Sparkline you think would work best for analyzing your data: Line, Column or Win/Loss. Next, the Create Sparklines dialog box will open and you will need to select the Data Range (row or column, no headers) that contains the numbers you want to visualize. If the location of the Sparkline is acceptable, click OK.

To modify the look of your Sparkline, select the Sparkline you inserted and click on the Design tab in your ribbon. Within the Design tab you have the tools needed to change the type, style and color of your Sparkline to fit your needs. n

GEORGE D. STRUDGEON, CPA, CGFM, is an audit director at the Virginia Auditor of Public Accounts in Richmond. Email him if you have Excel topics you want him to cover. * george.strudgeon@gmail.com connect.vscpa.com/GeorgeStrudgeon

CPA ASSEMBLY DAY SET FOR JAN. 19, 2016

The 2016 edition of CPA Assembly

Day, where VSCPA members visit their elected representatives at the Virginia General Assembly, will take place Tuesday, Jan. 19, 2016. We’d love to have you join us!

Your presence shows Virginia legislators that CPAs are committed to being an integral, active part of the legislative process. If you can’t attend in person, watch your email inbox that morning for virtual participation options. Visit vscpa.com/CPAAssemblyDay for more details. n

>> FEDERALLY SPEAKING

Top news from the Capitol and other national happenings…

NEW TAX DUE DATES CPAs cheered on July 31 when President Obama signed legislation to change the filing due dates for certain returns. The American Institute of CPAs (AICPA) and VSCPA had advocated for the changes for years because CPAs were frustrated by receiving information late and then not having enough time to file. Changes are effective for the 2017 filing season. Find a handy chart with all the changes at tinyurl.com/newtaxduedates.

W-2 AUTOMATIC EXTENSIONS ELIMINATED To combat fraud, the U.S. Internal Revenue Service (IRS) has eliminated automatic extensions for most W-2 series forms. The IRS simultaneously issued a temporary regulation (T.D. 9730) and proposed regulations (REG-132075-14) on Aug. 13, 2015. Visit irs.gov for more info.

NEW ESTATE BASIS AND REPORTING RULES As of July 31, 2015, there are new rules that require consistent reporting of basis between an estate and property acquirer. Statements must be sent to the IRS and beneficiaries within 30 days of the estate tax return’s due date. Read more from the Journal of Accountancy at tinyurl.com/estatebasisreporting.

EMPLOYER-SHARED RESPONSIBILITY PAYMENTS If your organization qualifies as an applicable large employer and chooses not to offer affordable, minimum essential health care coverage under the Affordable Care Act, it may need to make employer-shared responsibility payments to the IRS. Learn the ins and outs at tinyurl.com/sharedresponsibility.

F REORGANIZATIONS Final IRS regulations mandate corporations that meet six requirements will be able to effectuate F reorganizations tax-free when those reorganizations involve only a change of identity, form or place of organization. The regulations also govern outbound F reorganizations with foreign corporations. n