Disclosures: May/June 2020

THE OFFICIAL MAGAZINE OF THE VIRGINIA SOCIETY OF CPAs

MAY/JUNE 2020

VSCPA.COM/DISCLOSURES

THE

WFH (working from home)

ISSUE

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CONTENTS

Features 16 20 24

The WFH firm Altering a CPA practice to accommodate remote working

Supercharge your compensation program Today’s talent decisions affect tomorrow’s success

Columns 12

Professional Development Are you WFH the right way?

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Young Professionals Accounting: More than a job

FIND US...

WEBSITE vscpa.com CONNECT connect.vscpa.com TWITTER @VSCPANews

Departments

LINKEDIN tinyurl.com/ LinkedInVSCPA

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From the CEO

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Coronavirus

FACEBOOK facebook.com/VSCPA

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Advocacy

28

VSCPA News

33

Classifieds

34

Spotlight

INSTAGRAM instagram.com/VSCPA PODCAST vscpa.com/ LeadingForward

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FROM THE CEO

4309 Cox Road Glen Allen, VA 23060 (800) 733-8272 vscpa.com

disclosures vscpa.com/disclosures disclosures@vscpa.com MAY/JUNE 2020 Volume 33, No. 3 Managing Editor Jill Edmonds disclosures@vscpa.com Editorial Task Force Olaf Barthelmai, CPA Abby Brooks, CPA Cheri David, CPA Melisa Galasso, CPA Genevieve Hancock, CPA Karen Helderman, CPA Harold Martin Jr., CPA David Peters, CPA Mark Plostock, CPA Zach Shoaf, CPA Barbara Sukramani, CPA Disclosures is published six times a year by the Virginia Society of Certified Public Accountants (VSCPA). The magazine’s mission is to communicate information of value to VSCPA members, including professional issues and VSCPA initiatives.

The materials and information in Disclosures are offered as material only and not as practice, financial, accounting, legal or other professional advice.

Statements of fact and opinion are made by the authors alone and do not imply an opinion on the part of VSCPA officers, members or editorial staff. Publication of an advertisement in Disclosures does not constitute a VSCPA endorsement of the product or service. Copyright © 2020 Virginia Society of CPAs.

VSCPA Preferred Providers

U.Va. swag

Thriving in uncertain times Well, here we are.

I don’t think any of us could have predicted a pandemic, and now we are all weathering the same storm, trying to lead and work in an uncertain climate, fielding questions and managing our teams, families and anxieties.

Over the last two months, we have been reminded over and over that CPAs are resilient and essential. You are the ones helping businesses navigate financial stress, and you will be the ones to help guide our economic, financial and tax-related choices when the economy reopens.

As the coronavirus began to shut down localities in early March, we watched closely at what other state CPA societies were doing. When our own shutdown order came in Virginia, we were already knee deep in contingency planning to help and serve you in any way we can.

I spoke to one member who said that membership in the VSCPA is critical during a time like this. I tend to agree, and we’ve been doing all we can to provide you with as much value as possible. Our team sprang into action to make program changes, create resources, advocate on your behalf and so much more. Here’s just a peek at a few ways we’ve tackled COVID-19 head on: • Reviewing our budget for 2020–2021 and making revisions to ensure we still have a positive bottom line and are being the best stewards of your dues dollars. We have implemented a hiring and salary freeze until we see how the crisis impacts revenue.

• Extending our membership renewal payment deadline from May 31 to July 31 and continuing benefits for three additional months.

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• Advocating for you by meeting with Virginia legislators and regulators on the state filing deadline, late payment interest, CPA Exam changes and more.

• Creating resources like an online coronavirus resource center, videos, articles and new online learning opportunities.

• Changing in-person CPE events to online only and bringing you the same trusted, high-quality content from a virtual setting.

• Offering more free CPE so you get the education you need right now.

Above all, we are here for you when you need us. We are talking to members all the time who have questions and need guidance. If you need to talk, we are all working remotely but answering the phone. Call us at (800) 733-272 or feel free to drop me an email at speters@vscpa.com. We are here to help you thrive during uncertainty, now and always. n

Stephanie Peters, CAE, has served as VSCPA’s president and CEO since 2007. speters@vscpa.com @StephPeters

CORONAVIRUS

FROM THE EDITOR:

(Not) business as usual

Empty shelves because she just moved in (and they were painted that day)!

If you’re thinking

this isn’t a normal issue of Disclosures, you’re right. When the coronavirus pandemic gained steam in the Commonwealth in early March, the May/June issue was beginning development. Last fall, the Editorial Task Force determined that members would be interested in an issue on the recruitment and retention of accounting talent. By March, the vast majority of content for May/June was already written, including an excellent cover feature by VSCPA member Amanda Phelps, CPA, on the state of accounting recruitment. (You can at least see her working from home on page 8.)

When the pandemic hit, those plans didn’t seem to apply anymore. Perhaps you felt the same in your business life as well! The cover feature included statistics on low unemployment, which were clearly no longer relevant. Suddenly, we had to pivot on our content, develop a new game plan — and give ourselves some leeway in the process.

Here’s the result. Some features are from the original May/June plan, such as Brandon Pope’s article on building accounting teams on page 24. But you’ll find info on working from home and ways you can address the new challenges you are facing right now. This issue is also hitting your mailbox a little later in May than normal.

So, as you may have guessed, May/June pays homage to “WFH” — working from home. It was put together in my home office, together with my colleagues in their home offices. You’ll find home pictures throughout. We hope you are all staying healthy and productive — and thriving.

Jill in her home office in Leesburg.

Jill Edmonds Disclosures Managing Editor

CORONAVIRUS RESOURCE CENTER Since the beginning of the outbreak in Virginia, we’ve been uploading resources daily to our resource center at vscpa.com/coronavirus. You’ll find links to: • • • • •

Online education Federal legislative and regulatory news and resources Articles and podcast episodes Resources just for students and educators Much more

Also, we’re posting daily on our social media feeds, so make sure you follow us for the latest news and information.

See page 3 for our social media handles!

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Renew now with the VBOA Don’t forget to renew your individual and firm licenses

by June 30. Visit boa.virginia. gov/individual-cpas/renew.

CORONAVIRUS

You told us how you’re really feeling

Many of you

filled out our Pandemic Check-In survey last month. Thank you for letting us know how you’re doing, where you’re working and what you’re worried about. A few highlights: > Stressed, yep: More than half (57 percent) of you are stressed out, understandably.

“Healthy so far, a little stressed from losing so much time related to COVID-19, and not getting returns out as quickly as I would like.”

> On the homefront: Fifty-eight percent are working from home, and the 22 percent of you in the office are taking social distancing precautions. > Loan questions keep coming: Those of you in public practice are dealing with concerns like filing taxes and meeting with clients, but the issues raised in new federal legislation with the Paycheck Protection Program and other items are taking a ton of time. > Virginia’s tax filing deadline is a challenge: Virginia’s decision not to move its tax filing deadline to July 15 is causing consternation.

“Clients don’t care about the Virginia deadline because all they hear is the federal deadline is extended to July 15. It’s really hard to get their attention.”

> The economic outlook is a big worry: More than three-quarters of you not in public practice are worried about the economy. Cash flow and unemployment are other real concerns.

You gave us suggestions for things we can do and resources we can provide, and we are working through them to try to help you as much as possible! This includes getting as many virtual educational opportunities and webinars out to you that we can. Visit vscpa.com/coronavirus for links to education, resources and more.

STATS WE DIDN’T SEE COMING Since the beginning of the year, mergers and acquisitions have declined 33 percent. It’s the smallest year-to-date value since 2013.

As of mid-April, Virginia’s jail population had declined by 17 percent, with a 67 percent decline in the number of new commitments for misdemeanors.

Virginia’s demand for fish has decreased by nearly 90 percent, severely impacting the state’s fishing industry.

IF YOU NEED FINANCIAL HELP… Check out the Benevolent Fund from the American Institute of CPAs (AICPA).

Created in 1933, the Fund assists AICPA members through temporary periods of financial difficulty. It provides shortterm assistance for daily living expenses that some members may find difficult to meet due to unemployment, accident affecting personal or family health, medical expenses exceeding insurance coverage, natural disaster or the loss of a primary source of family income.

If you’re suffering from unemployment due to the coronavirus outbreak, or undergoing other financial hardship, take a look and see if you can apply.

Visit aicpa.org/about/affiliates/ aicpabenevolentfund for more.

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CORONAVIRUS

LISTEN TO THIS:

Special COVID-19 podcast series The VSCPA Leading Forward podcast pivoted in April to a weekly format with VSCPA members and thought leaders. VSCPA Chief Operating Officer Maureen Dingus, CAE, had candid conversations on how they’re managing and even thriving during the pandemic. Topics include working from home, communicating with clients and adjusting to this new way of life as a result of COVID-19. Find all VSCPA Leading Forward podcasts and their transcripts at vscpa.com/vscpa-leading-forward or subscribe using your favorite podcast app! Featured guests are:

Penelope Bustamonte, chief operating officer, Wall, Einhorn & Chernitzer

Jason Navon, CPA, CFO, Rossen Landscape

Ann Deaton, Ph.D., PCC, leadership coach, DaVinci Resources

Aaron Peters, CPA, sole proprietor, Peters & Associates, PC

George Forsythe, CPA, managing partner and VSCPA vice chair, WellsColeman

Brandon Pope, CPA, associate director for accounting and finance, Vaco Richmond

Kathy Greenier, personal and team effectiveness consultant, Floricane

WFH MEMBER Amanda Phelps, CPA, working from her kitchen in Suffolk. How she’s thriving: • Staying on a routine.

• Scheduling video meetings so I am forced to change out of pajamas.

• My car is getting three weeks to the gallon and I haven’t paid a toll in a month • Staying connected to my mentor helps me because it’s nice to hear the approach other companies are taking.

I SPY...

What else can you find in the home offices in this issue?

• Snoopy curtains • A piece of pie • Blue book of 2020 federal tax statutes and regulations • Five pairs of glasses • An orchid • Cleveland Indians hat

Snazzy suit jacket she wears on calls to stay in a business mindset

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• Three shells • Mints • A basketball

Selling your practice?

We can help Guide you out!

We’ve guided thousands to

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Delivering Results - One Practice At a time Wade Holmes 888-847-1040 x2 Wade@APS.net

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ADVOCACY

Advocating during a

pandemic

Unlike a normal year, the opportunities to advocate on CPAs’ behalf continued well after the Virginia General Assembly session ended.

The Virginia General Assembly session that began

in January seems like a distant memory since the COVID-19 pandemic started. Gov. Ralph Northam took final action on bills from the session on April 6, 2020, and both chambers reconvened outdoors in Richmond on April 22 overcoming logistical roadblocks of social distancing and not meeting in their normal chambers.

The VSCPA has been in close contact with the governor’s office, Virginia Sec. of Finance Aubrey Layne, CPA, and elected officials to chart a path forward and keep the Commonwealth moving.

CORONAVIRUS-RELATED POSITIONS AND LETTERS: > Interest Accrual: We asked you to help us build support for Northam’s proposal to provide relief of interest accrual on delayed tax payments during this crisis and our voices were heard. During a unique reconvene session conducted on the Capitol lawn, the General Assembly overwhelmingly approved Northam’s amendments to the state budget to waive interest on income tax payments for which the payment deadline was extended to June 1, 2020, so long as the payment is made on or before June 1, 2020. Additionally, the amendments waive interest on sales tax payments originally due March 20, 2020, so long as the payment was received by April 20, 2020. Northam signed the legislation on April 24. > Tax deadlines: On March 19, we sent a letter requesting that Virginia offer penalty relief after the federal

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government announced a payment extension. Then, on March 20, we requested a Virginia tax due date extension immediately after the federal government moved its extension to July 15. > CPAs as essential employees: On March 21, the VSCPA sent another letter advocating that, should the governor implement shelter-in-place or lockdown orders, CPAs and the accounting profession should be included in the list of Essential Critical Infrastructure Workforce. > Payroll providers: The Society also lobbied federal leaders to find an efficient solution for the federal government to use already-existing payroll providers as it distributes payroll funding to small businesses to help keep those businesses from closing their doors.

THE 2020 SESSION We faced an uphill battle to educate the dramatically changed legislature around tax conformity but got emergency fixed-date conformity passed (HB 1413 and SB 582). In fact, this legislation with the first bill Northam signed into law this year. Our efforts around rolling conformity (HB 734) received overwhelming support in the House but did not come up for a vote in the Senate.

Your outreach to elected officials was crucial in advancing rolling conformity as far as it went. The groundwork laid during this session will set the table for us to continue the conversation in 2021.

ADVOCACY

Other legislative success for the 2020 session: > We supported HB 1417 that will enable Virginia to align with the new IRS partnership audit regime and streamline administration; the bill passed both chambers unanimously. > The VSCPA joined with a coalition of interested parties to defeat HB 680 and 685 that presented significant privacy and data security risks for Virginia citizens, contractors and state government agencies. The bills were killed before ever reaching the floor. > We supported HB 689 that requires the number of hours worked to appear on employee wage-payment statements only if the employee is paid by the hour and not on a salary basis. The pay stub or equivalent electronic version is to include information on how gross and net pay were calculated; the bill passed both chambers unanimously. n

VIRGINIA BOARD OF ACCOUNTANCY UPDATES The Viginia Board of Accountancy (VBOA) has been unable to meet in person during the COVID-19 pandemic and its ability to keep up with phone inquiries has been hampered. The VBOA office has asked that CPAs reach them via email at boa@boa.virginia.gov during this time.

There are no plans currently for changing or extending the deadlines for license renewals and CPE requirements, but this may change as the crisis drags on.

For the latest information from the VBOA, visit

boa.virginia.gov/resources/covid-19-updates.

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REMOTE WORKING

ARE YOU WFH THE right WAY? Here are a few tips to make remote working work for you.

By Tina Bates, CAE

Chances are, many of you have been working from

home (WFH) for weeks now. As the VSCPA’s vice president, innovation, I’ve been working remotely from Charleston, S.C., for nearly six years. So while many of my colleagues have had to navigate the “new WFH normal,” I’ve learned a few tricks over the years.

Even if you’ve got this WFH thing down, here are few guidelines I rely on.

Grover Washington Jr. record

You may be at home, but that doesn’t mean communication stops.

In recent studies of remote workers, the No. 1 challenge by far is always communication.

Videoconference or pick up the phone first.

Don’t solely rely on chat apps and email to communicate with each other. It’s harder to read body language, have water cooler talks or pop in for quick conversations when you are remote.

Need touch base with your boss, your staff or a teammate? Do it via videoconference so you can “see” each other and attempt to create that in-person touch. The same goes for any difficult conversations you may need to have with coworkers.

Tina in her home office in Charleston, S.C., where she Zooms with VSCPA coworkers every day!

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Get your home office somewhat workable.

If you’re still dangling your laptop off your kitchen island or contorting your body on an uncomfortable barstool, for goodness’ sake do your body a favor. Set yourself up for success by finding a dedicated space in your home free of distractions for your office and workstation. A room with low/

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no traffic and lower noise level is ideal, but even a small desk in the corner of a bedroom could do the trick. Get a good, supportive chair. And try to stick to your normal schedule. Wake up at the same time as normal, eat lunch at the same time every day.

Consistency is key.

Make yourself accessible and visible (at least from the waist up.) All this means is, be responsive and use video as much as possible. You may be WFH but you haven’t disappeared into a black hole.

Wear your sweatpants if you want to. But make sure you’re responding timely to your coworkers and set expectations for when you’re available or not. Even entering a profile picture into your video conferencing software makes others feel your presence. And reach out to coworkers just to say hello!

Set boundaries, whatever those look like for you. You may LOVE to have the dog snuggled at your feet. Or you may want to kick him out of the office due to incessant whining. Whatever you need to do to be productive, set your boundaries and stick to them. Pay attention to what you need to do to separate work and life. Track your time and make sure you’re not overworking.

Move it. As in, get up and away of your desk and take mental breaks. Without distractions of co-workers talking to you outside your cube about Tiger King (well except for your kids bugging you at home!), you may find yourself sitting for hours at a time without any mental pause. Maybe set a timer on your computer or smart watch to get up for a break every 50 minutes. Whatever you need to do to give your mind and body a break, make it happen.

Just shut those social media windows. On the opposite end of the spectrum, there is such a thing as losing focus! If you can’t stay away from social media, get it away from you. Keep the Facebook and LinkedIn window closed. Set a 10-minute window

REMOTE WORKING

during the workday to check Instagram. Don’t allow yourself to get amped up watching the COVID-19 infection tracker.

Download an app that blocks problematic websites. Whatever you decide to do will be based on your own needs. But be honest with yourself, identify distractions and make a plan to manage them.

Don’t be afraid to ask for help! There’s no shame in reaching out to colleagues to help you if your technology isn’t functioning or you’re just struggling to adapt. If this is your first time WFH, give yourself a bit of grace and understand that there is a learning curve. Notice a dip in your productivity?

Becoming anxious? Caring for a sick relative or stuck at home with young children? Don’t try to be everything to everyone.

Keep lines of communication open with your employer.

Be patient and kind — with coworkers but yourself, too.

There are all different levels of remote workers, from veterans to newbies. Everyone is navigating new technologies, new

work habits, varied productivity and widely differing stress levels. Be patient, supportive, forgiving and honest with each other. We're all in this together!

Who knows how long this “new normal” will last, but remote working is likely here to stay. Take these tips to heart and you’ll be a pro in no time. Feel free to reach out if I can help you and/or your organization. Also, check out our Center for Innovation and Coronavirus Resource page on vscpa.com for lots of additional remote work resources. n

Tina Bates, CAE, is the VSCPA vice president, innovation. She oversees the VSCPA Center for Innovation, membership and communications teams. tbates@vscpa.com linkedin.com/in/tinalbates @TinaLBates

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YOUNG PROS

HEY, YOUNG PROS: ACCOUNTING IS A career, NOT JUST A JOB By embracing accounting’s opportunities and challenges, new entrants to the profession can carve out lasting careers.

As young professionals first enter the world

By Zach Shoaf, CPA

of public accounting, some may see the profession as merely a 9-to-5 job that provides a paycheck and benefits. However, public accounting is much more — the opportunity to become an expert and leader in the field and provide excellent client service.

Accounting can be a career. I interviewed several employees at Dixon Hughes Goodman (a regional Charlotte, N.C.-based accounting firm) about their advice to young professionals on how to approach public accounting as a career and not just a job.

EXPECTATION VS. REALITY To fully embrace accounting as a career, consider the expectation versus the reality of the profession.

For the most part, public accounting has a systematic approach to a career (associate to senior, senior to manager, etc.), with many firms maintaining guidelines for the years and objectives required for promotion. This model can be enticing to young professionals, many of whom may want, if not instant success, at least a roadmap in that direction.

However, seasoned professionals, such as Perry Kessler, CPA, partner at DHG’s Tysons office, cautions new hires that there are no short cuts to hard work.

“Keep the hunger for upward mobility, and distance yourself from the expectation that success will come easily,” Kessler says. “Serving clients is very rewarding because it is challenging. It takes repetitions to achieve the level of experience necessary to operate at a level where a young professional is able to provide the value to a client that is commensurate with significant promotions/raises. This does not mean a significant amount of time needs to pass — but if you want to rise faster, more opportunities are needed in a shorter timeframe to provide the same amount

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of experience that would otherwise be gained over a longer period of time. Said more simply — more productive client service time spent now can result in rising faster, but you have to want it and be willing to work for it.”

Another struggle for young professionals (or anyone in accounting) can be work-life balance. But what can be a trigger for some is accepting the balance can tilt unevenly at times with busy season and other deadlines in a client-based industry. As a partner at DHG’s Tysons office, Lori Charlebois, CPA, has seen this struggle, but offers some perspective.

“As a working mom of 4, I have challenged the industry norms and help develop some of the first flexible schedules with the firms I have worked with,” Charlebois says. “The trick is understanding the needs of both sides and finding the right balance.

The company has a requirement, and we get paid, to provide a service for a client within the required deadlines. At times this means there is a lot of work to do in a short period of time. However, with technology, the amount of hours and where and when those hours occur has changed and is more favorable to the employee. This has allowed me more flexibility to be with my family and still achieve client’s deadlines. By understanding both the employee and firm business needs, increased communication (due to working remotely or at different times) and a little creativity, we are typically able to find the right balance to make both sides happy.”

OWNING ONE’S CAREER Young professionals are also advised to take ownership of their own development, with many firms providing feedback platforms, including DHG,

YOUNG PROS

Pittsburgh sports memorabilia

friends may question why you can’t just cram for an exam. It’s tough, but you’ll set yourself up for success early on in your career by putting in some extra work early on.”

Zach at his home office in Sterling. which has the Performance Enrichment Program, a tool that allows employees (regardless of their level) to request feedback. Jana Panneton, human resources manager for DHG’s Capital Market, believes this tool is valuable to enabling young professionals to own their careers.

“The entire premise of our Performance Enrichment Program is to facilitate and encourage our professionals to own their careers,” she says. “Our employees may request and provide feedback from and for anyone across the firm at any time and at any level, up and down. Employees are encouraged to schedule career conversations as needed with their performance coaches and we provide a tool for them to capture those conversations, set goals and review them regularly.”

Per Panneton, further programs in place include opportunities for employees to meet with their career coaches to decide specific trainings to meet their career goals. In addition, the firm has a number of special interest groups, one specifically geared towards young professionals new in their careers. “These special interest groups focus on subjects that are important to the employees including common challenges,” Panneton says. “We believe that networking with other professionals promotes and strengthens career development.”

Lauren Callahan, CPA, a senior manager at DHG’s Tysons office, offers another perspective on a more traditional measure to own one’s career. “I strongly encourage passing the CPA Exam within the first two years after college while all that knowledge is fresh in your brain and you have less responsibilities at work,” she says.

“Even if you are not looking to be in public accounting, being a CPA not only gives you more career options but also increases earnings potential. You survived a really hard major, you might as well reap the benefits of all it has to offer. Your non-accounting

Finally, young professionals are also urged to develop their soft skills, with Gina Anderson, a director at DHG’s Baltimore office, offering the following advice. “If you are uncomfortable with public speaking, join Toastmasters or take a public speaking class,” Anderson recommends. “If asked to give a presentation, do so — your speaking skills and comfort level will improve with practice.

In my opinion, there is no skill that will improve your professional advancement than being a good presenter.”

DEALING WITH BURNOUT One concept that has permeated about young professionals is that they will change jobs frequently, sometimes out of accounting entirely, which can be counterproductive to approaching accounting as a career. An often-cited reason is burnout, with the hour requirements and drive to meet deadlines. Charlebois reflects on this challenge: “Public accounting has a demanding workload in certain times of the year due to regulatory deadlines. You have to go into this career understanding that. However, there a plenty of ways to reduce that workload by planning ahead with your engagements, showing ‘urgency’ in the normal day to put yourself ahead of the game instead of procrastinating for another day. We are able to control some portion of our work by planning ahead with self-discipline.”

One tool to curb burnout has already been adopted by several firms, including DHG. “The firm has recently changed our vacation policy to be unlimited ‘my time,’” Charlebois says. “This allows us to take more time off when we need to recover and invest in ourselves. We strongly encourage people to use this benefit.”

Accounting is what you make of it. It can be a job, but given the right perspective and drive it can be a career as well. By embracing the opportunities and challenges provided by public accounting, you can have a successful and rewarding career. n

Zach Shoaf, CPA, is a senior associate at DHG’s Tysons Office. He is a member of the Disclosures Editorial Task Force. zachshoaf@hotmail.com linkedin.com/in/zacharyshoaf

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REMOTE WORKING

THE NEW NORMAL:

THE WFH firm

Altering a CPA firm to accommodate remote working takes clear practice management vision.

By Randy Johnston

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REMOTE WORKING

In this challenging time of the pandemic and

working from home, tools to manage the practice, team members and your workload can help. Most CPA firms report that advisory work has exploded — helping clients manage cash flow, apply for Paycheck Protection Program (PPP) loans and dealing with the extraordinary move of changing the April 15 federal tax deadline to July 15. Coping with the COVID-19 pandemic will be the trigger event that shows how our firms can work in the “new normal.”

As our firms adjust to extraordinary client demand and the changing regulatory environment, we will need to consider the tools and techniques required to solve the new problems at hand. While our vision of the future is never as clear as 20-20 hindsight, what is needed to run the “new normal,” the work-from-home (WFH) CPA firm?

DEFINING THE FUTURE What defines our future firm best? Some firms smugly declared that they were ready for WFH because they were hosting their applications or had implemented a private cloud. Unfortunately, they had not considered the strain WFH would have on all of their systems, communications and support. On the other hand, partners discovered that WFH sometimes meant “not work.” Team members who were self-starters continued to produce and, in many cases, had more work than ever to do. Other team members discovered ways to game the system, such as logging in, answering a few emails and then heading off to take a shower or have breakfast before returning to their computer.

Additionally, some team members found that their home was ineffective to accommodate WFH. They didn’t have a comfortable chair to use for an eightor 16-hour day. The kids and the dogs made too much noise to have a business call undistracted.

Getting by on a smaller monitor at home didn’t work when this became the full-time setup. And the spare bedroom, basement or closet wasn’t as effective as a home office, without desk space and all the tools of the trade. Even managing small entrepreneurial businesses from home requires the right tools. Indeed, we have learned the deficiencies of our WFH setup.

Perhaps there are tools from the past we don’t need anymore like calculators or phones, but probably not.

So what does the WFH future require? A few apparent changes will occur. First, retirements that were imminent because of the healthy stock markets will be delayed. Postponing retirements will alleviate some of the immediate need for staffing. Unfortunately, some firms have made plans to furlough team members as soon as they can plan their future workloads. Some firms have reduced partner draws. Other firms have increased client service and billings at this time, keeping their clients and their firm ready for when the business climate improves. Appropriate staffing will continue to be a practice management issue.

Second, WFH is likely to become the “new normal.”

While there had been a trend to more remote working, WFH was more of the exception than the rule for most CPA firms. The pandemic stay-at-home orders forced firms to implement WFH, and proved that this can work. Maintaining the culture of the firm for the long haul will be a challenge that must be solved.

Third, forced remote work has proven that cloud technologies can scale. Microsoft Azure had a 755 percent increase in load in March 2020 compared to April. Microsoft had to turn off features such as synchronization and icon rendering to keep the system working under pressure. Azure performed admirably, and Microsoft’s management of the system stress was notable.

Fourth, it was clear that some technologies didn’t work at first and had to be adjusted. Voice over IP (VOIP), video meeting tools and many others suffered under load. During the early conversion to WFH environments, most remote systems that I used had failures of one kind or another. However, the management and IT teams at these companies responded and addressed most issues within a couple of weeks.

Fifth, there are likely to be systemic changes. For example, many practices proved that they could WFH effectively. So, will the need for expensive real estate and fancy offices drop? Can we mostly eliminate the 30- to 90-minute commutes that many have routinely been making? Do our expenses drop when we don’t have to sit in traffic and pay for fuel? u

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REMOTE WORKING

TOOLS TO MANAGE A WFH PRACTICE Practice management systems that have workflow capabilities, billing, scheduling, electronic payment, portals and integrations into our document management system, tax and accounting and auditing tools are best. Whether your firm does value billing or bills by the hour or project, you still need to get the invoices out and get paid in a timely fashion. While there are useful practice management tools for smaller firms such as Accounting Power, OfficeTools, Clarity Practice Management and TPS Cloud Axis, new competitors like Canopy, Karbon and Pascal Workflow are trying to break into the market. Products for larger firms like CCH Axcess Practice, Onvio Firm Management, Practice Engine or STAR are all quite aware of the need for managing remote professionals.

But practice management software is only part of what is needed to manage a remote or WFH group of professionals. Other remote tools should include:

DECIDE WHAT IS RIGHT FOR YOU What is the right thing to do for your firm and your clients? Can your team members effectively serve clients if they work from home? Are you providing the right tools with the proper education? Have you planned expertly for all the remote tools listed above? Have you focused on your client and team member experience? How do you and your partners manage people effectively when you can’t walk down the hall or you don’t have a partner in charge of an office location?

Visibility in your practice management system, combined with effective document management and workflows, are the keys to practical remote work. Yes, we’ll still have issues managing things like due dates and scheduling teams for engagements.

Flaws in your practice management, document management, workflow, portals and other tools became evident during the stay-at-home orders. But if you can’t get the bills out and get paid, how would your firm stay around to continue to help clients? n

CPE FROM HOME Randy will be doing a deeper dive into remote working, productivity software and other technologies for CPAs at the Business & Industry Virtual Conference May 18–19. Register at vscpa.com/BIC.

Charlie Brown

• Productivity software with Microsoft 365 (formerly Office), Zoho One or G Suite

Randy at his home office in Hutchinson, Ks, where he runs multiple keyboards and has a slew of technology.

• Phone support with VOIP from providers like Vantage Unified Communications • Video meetings with Google Hangouts, GoToMeeting, WebEx, Zoho Meeting or Zoom • Document management with Doc-It, CCH Axcess Document or GoFileRoom • Portals with Doc-It, CCH Axcess Client Collaboration or SurePrep Tax Caddy • Workflow with XCM, CCH Axcess Workstream or FirmFlow • And more

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Randy Johnston is a shareholder in K2 Enterprises, LLC, a leading provider of CPE to state CPA societies. He also owns Network Management Group, Inc., a managed services provider. Ask for help at NMGI by emailing helpdesk@nmgi.com or call (620) 664-6000.

THANK YOU FOR BEING A MEMBER We are in unprecedented and uncertain times and want to be as flexible as possible with your VSCPA membership renewal. Here’s what we are doing to increase value to you and increase flexibility: • Increasing free CPE to 30+ credits opportunities (up from 20), transitioning May and June conferences to virtual formats and adding new and timely online learning (webinars, webcasts, self-study).

• Extending the membership payment deadline from May 31 to July 31. This means you will be able to take advantage of your VSCPA benefits for three additional months.

• Offering a monthly payment option for dues at no additional cost.

• Providing a special membership rate of $90 (a 71% discount) for members who are experiencing unemployment or are working fewer than 1,000 hours.

We hope you all are well — we know you’re busy! Our VSCPA team is here for you.

Please let us know if you have any questions, and feel free to contact our team at membership@vscpa.com. Most importantly, please stay safe and healthy.

vscpa.com/Renew

PRACTICE MANAGEMENT

SUPERCHARGE YOUR compensation PROGRAM A well-designed comp structure can motivate, challenge, reward and advance your team to keep them happy and productive.

By Ira Rosenbloom

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PRACTICE MANAGEMENT

Prior to the pandemic, hiring and retaining

top talent was of critical importance to all business owners, including leaders at accounting firms. While many firms pivoted over the past few months to deal with clients’ questions and concerns related to the coronavirus, when the dust settles and working life returns to some semblance of normalcy, leaders will still need the best talent they can find.

According to the AICPA 2019 PCPS CPS Firm Top Issues Survey, staffing was a significant concern for every firm with two or more employees. Finding staff was the top issue and retaining staff appeared among their top 10 issues, which indicates that it is an issue on everyone’s mind.

Remember, staff turnover doesn’t mean you simply replace one salary with another. Many human resources professionals predict that it costs six to nine months' salary on average every time a salaried employee is replaced.

Retention isn’t the only reason to give your compensation structure some thought. A strong compensation program can attract top talent and enhance employee satisfaction. With any job, the happier and more motivated you are, the stronger the effort you’ll put forth and the more likely it will be that you enjoy success and reward. Employee satisfaction also leads to client retention, higher productivity and efficiency, and, ultimately, higher profitability.

Need more reasons to keep your team happy?

Gallup’s annual employee engagement survey of employers concluded that the most engaged teams contributed to 21 percent greater profitability, a 41 percent reduction in absenteeism and 59 percent less turnover.

Good, well-designed, impactful compensation programs bring out the best in the performers and work to create a stronger accounting firm business overall.

So how do you supercharge your compensation system to best effect?

To begin, it’s good to remember that, while data and metrics play a big role in a fair and productive compensation system, communication and alignment are crucial to the success of the plan.

People need to believe the goals and the mission are appropriate for them and the firm. People need to have the chance to articulate their views on the system and contribute to any potential modification.

Communication must allow for formal, set times in the year — and chances to be spontaneous as well.

Accounting firm management must be open-minded to views and take the time to explore with other CPA firms and professional services businesses their best practices.

While every firm has its own culture, people and needs, the process of developing the appropriate compensation system for your firm should take the following points into consideration. > Define the core performance. The right compensation program will take into account a base salary or compensation plus incentives.

Everyone at every level needs to understand what the basic expectations are to earn the basic compensation, so it’s important to be clear on expectations. As a baseline, existing job descriptions should be updated and each year a performance plan should be enacted to support the base expectations. Items such as production in dollars, hours of service, community service, project completion, turnaround time, attendance, accessibility and coverage, rates and administrative functions are all appropriate specifics for that performance plan. > Study your audience. People have their own likes, dislikes, comfort zones, visions and definitions of success. In order to optimize individual performance, the more we know what is important to our team members, the more we can create a plan to reward what we mutually feel is important and help them get to their happy place. Create a questionnaire and interview all of your team members. Bring in an outside expert to do a focus and feedback project. The goal in this process is not to find what’s common; the goal is to learn what will inspire. > Prioritize your goals. CPA firms will have different priorities at different points in time.

Formulate and agree upon goals for individuals and the firm every year three months u

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• Performance in niche areas > Design a platform. Successful CPA firms like to be recognized for knowledge and technical skills. If the firm can’t deliver knowledge and results in an efficient and orderly process, the firm’s reputation for knowledge and technical expertise will be tarnished by the firm’s organizational skills. An impactful compensation system will reward both teamwork and individual performance.

And teamwork may be further broken down among the small, specialty teams and the full macro team.

Temple hat

A specialty and individualized reward system should factor in: • • • •

Ira at his home office in Spring House, Pa.

ahead of the new compensation calendar. Depending on firm size, establishing the goals may be the responsibility of specific owners. Establishing goals may also include the firm administrator, human resources professionals and the most experienced client service professionals who are not owners.

Firm level goals of improving may include: • • • • • • • • •

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Client satisfaction Peer appreciation Engagement management Closing rate on new business Load management Community engagement Personal production Delegation and increased responsibilities

Turnaround time Client satisfaction Realization rate Utilization Accounts receivable (AR) and work in progress (WIP) turns Employee turnover Close rate Loss rate Recognition by outside ranking organizations

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A full team/macro reward should be a result of hitting firmwide goals such as:

• Growth in revenues, whether by type of client or service or in total • Improved utilization • Gross profit levels • Winning awards from ranking or outside organizations • Employee retention • Employee promotion • Achieving milestones • Overall internal grading of satisfaction

Individual level goals of improving may include the following: • • • • • • • •

Engagement management Referrals Enhanced gross profit by unit Turn of AR and WIP on selected matters

> Engineer the economics. Total compensation, inclusive of incentives and perks, needs to fit into a budget of expenditures for the firm. The intent behind the use of an impactful compensation structure is to achieve results that will bring greater economic benefit to both the firm and the participants. That said, there should be a pool of dollars budgeted and used for the different types of incentives and rewards that will be earned.

Team-based bonuses may be capped at a percentage of an “A” result — for example, a percentage of the increase in tax season billings, a percentage of the dollar value of improved realization or value of time saved by being more efficient. The pool of money to be available for individual performance may be capped at a percentage of payroll or a percentage of revenue. Participation in team bonuses may be done based on department allocation, relative salary, per capita or some statistic reflecting contribution to the success.

Individual bonuses may be computed as a percentage of

PRACTICE MANAGEMENT

base pay, a percentage of an achieved result or a specific dollar amount.

If the total of earned bonus dollars exceeds the pool, then a process of re-allocation needs to be determined. For some, it is preferred to allocate adjustment based upon the relative amounts earned. For other firms more analytics are involved.

> Live to a process. To enhance the likelihood of strong performance, results should be monitored and mined throughout the year. Distributing bonuses several times a year is preferred to an annual bonus — although some of the achievements may be most practical to compute once a year. Firms should be comfortable measuring performance for a 12-month period, which won’t necessarily correspond with a calendar year or the year-end of the firm.

It is clear that owners have much to gain from a highperforming organization. The owners and, if needed, outside experts should work with all of the team members

to maximize their abilities to earn bonus dollars and to set a culture where the bar can be raised each year, requiring stronger and stronger results for bonus dollars.

The owners should live to the same process. Owners should see a sizeable part of their annual compensation coming from bonus dollars and incentives for them. Those owners who coach the employees should be rewarded by the success of the employees and have a bonus paid as a percentage of the pool paid out.

No matter how the bonus dollars are paid out to the employees, updating the firm on the achievement status several times a year will enhance the probability of hitting or exceeding the goals. Firms that are performance-driven also recognize that, at times, circumstances arise that will require goal modification. The more the firm culture embraces impactful compensation, the more people will be able to see high performance as a norm and natural effort.

Achievements and responsibilities are never static and compensation parameters should not be static either. The right compensation structure will motivate, challenge, reward and advance all participants and especially the firm.

Creating a successful, sustainable CPA firm requires having good people who are doing well for themselves, their clients and their peers. Basic compensation is expected. Rewards, acknowledgement and support will be the difference-makers that will create better retention of the best, highest-performing people.

GET TO KNOW SAGE

It’s a good reminder to work on your compensation system every year to make the impact that will benefit the firm and its future. n

Sage is a loyal and reliable business partner for CPAs, a partner that keeps your firm’s best interests in mind and will help you protect and grow your client base.

A true partner, here to support you by helping you protect and grow your customer base

Resources to add value, including the SAN Client Advisory Services (CAS) Program

More choices through a broad product portfolio of both cloudnative and cloud-connected desktop solutions.

Visit www.sage.com/en-us/VSCPA to register for a free demo webcast and learn more about Sage solutions and the Sage Accountants Network.

Ira Rosenbloom is chief operating executive of Optimum Strategies, LLC, in Pennsylvania, a niche CPA practice management advisory firm that specializes in enhancing firm effectiveness. ira@optimumstrategies.com 215-694-8084 www.OptimumStrategies.com

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TODAY’S talent DECISIONS AFFECT TOMORROW’S SUCCESS Understand the timing of hiring, the changing recruiting landscape and the importance of building effective accounting teams.

By Brandon Pope, CPA

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PRACTICE MANAGEMENT

What keeps you up at night?

Are you a manager who is trying to balance a shorthanded team’s needs while still maintaining your own priorities? Are you a controller who has deadline after deadline coming up with limited resources? Are you a CFO who understands the power of big data, but maybe you are less up-to-date on employee data? Regardless, you likely share a common issue surrounding one topic: talent.

Talent-related decisions are critical to ensuring an organization’s success, so it is important to invest the time in understanding when to hire, how the talent landscape continues to change and what best practices to utilize in your organization. The fact may be that you are a CPA, not a hiring expert, but it is important, now more than ever, to understand how the decisions you make today affect the success you will experience tomorrow and further into the future.

THE RECRUITING LANDSCAPE If you’ve tried to hire an accounting or finance professional recently, chances are it may have been more difficult than you thought it was going to be.

It may have been dramatically harder than you originally thought, in fact. This is, in part, due to the sheer shortage of top-caliber, qualified talent.

The U.S. Bureau of Labor Statistics released a recent report that noted “the unemployment rate for workers in management, business, and financial operations occupations was just 1.6 percent.” Compare that to the national unemployment rate of 3.5 percent pre-COVID-19 (more on that later). Considering this statistic, it should come as no surprise that some organizations take weeks, if not months, to identify the right talent solution for their team.

CPA firms are all too familiar with the challenge of getting timing of hiring right. For entry-level positions, it’s no longer as simple as posting a need online and waiting for the top students to self-identify themselves. Significant resources are being spent on college campuses every semester to ensure firms can secure the top talent they require for their teams. In some cases, firms are having to take extreme timing measures of investing recruitment efforts in local high

schools, not only for their firm’s interests, but for the overall accounting industry in general.

The future is far from certain, but one thing that differs dramatically from that of times past is the overall hiring landscape. A changing hiring landscape, in part, involves many hiring managers facing difficult projects and tasks on top of their already hectic workloads.

CONSULTANTS CAN BE A SOLUTION Some CPAs do not realize there is an alternative to a traditional direct-hire employee: project and contract consultants. Project and contract work provide consultants high work-life balance on engagements that are meaningful for organizations. Sometimes that leads to direct-hire positions with the organizations they serve, if they decide that is best for their career.

Often, the compensation, flexibility and variety of experiences that project and contract work provides is attractive to consultants and it fits meaningful portions of their professional experience. This employment umbrella also allows project consultants to organically avoid office politics that may be present in some organizations. Organizations engage consultants on projects in seasons of excessive demand and when they need specific expertise. It is a tremendous value because it doesn’t overburden and burn out employees during peak times, allows organizations to access specialty skills to support the overall growth and gives countless accounting and finance professionals an opportunity to contribute in a way that fits their lifestyle.

FINDING THE RIGHT FIT Effective accounting teams are not always easy to come by — many CPAs quickly realize this. Decidedly, professionals who possess the technical qualifications, but lack an organizational cultural fit, likely fail to be a long-term talent solution. In fact, the International Workplace Group released a recent study that showed “80 percent of respondents said that when faced with two similar employment offers, they would turn down the one that didn’t offer flexible work arrangements.”

It’s 2020 and culture is king. One best practice for organizations that struggle with the hiring process u

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PRACTICE MANAGEMENT

MORE FROM BRANDON

Quarantine beard

Listen to Brandon share a helpful tip to ensure teams are successful during this time in his chat with VSCPA COO Maureen

Brandon at his office in Richmond, proudly displaying Virginia Tech memorabilia.

Dingus in the VSCPA Leading Forward podcast’s special COVID-19 series. Find it at vscpa.com/vscpa-leadingforward.

is to utilize an expertise-based approach to their talent needs. A few questions to help focus on cultural fit are: 1. From what you’ve seen, how would you describe the organizational culture here?

2. Describe a big decision you made recently. What was your thought process in making the decision?

3. How do you adapt your communication style to your audience?

Not only will this strategy allow hiring managers additional flexibility, but it will expand the talent pool of qualified professionals. Focusing on finding the right fit can help attribute to teams being happier, more effective, productive and efficient.

THE POST-PANDEMIC LANDSCAPE Lastly, by now, you’ve probably been affected in some way by the COVID-19 pandemic — whether it inconvenienced you to temporarily work remotely, you lost clients or other sources of business, or worse, you lost a loved one. There is no dancing around the fact this was one of the hardest set of circumstances any of us will have to face in the foreseeable future. However, hard times have come, and hard times have passed; COVID-19 is no different. Business operations will likely soon mirror what they

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did back in January and February, and the common issue facing many organizations, talent, will be just as important now as it was then — if not more. With that in mind, keep three things in clear sight: 1. Go ahead now and invest the time it takes to understand your organization’s strategic goals and how the timing of hiring affects them.

2. Don’t be naïve to the changing talent landscape.

Understand it may end up being more difficult than you initially imagined and stay open minded to new and unique hiring methods.

3. Identify the best practices for your organization on how to build effective accounting teams — the difference will undoubtedly affect tomorrow’s success. n

Brandon Pope, CPA, is associate director for accounting and finance at Vaco Richmond, a staffing and recruiting firm. bpope@vaco.com linkedin.com/in/brandonpopecpa

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Explore the CGMA® Program Learning Pathway bundle. It’s the one-click solution that includes all the learning resources you need to progress through the program, plus the cost of one exam sitting. It’s an end-to-end experience that fulfills your yearly CPE requirements and moves you along the pathway toward achieving the CGMA designation.

To learn more, visit AICPAStore.com/CGMAProgram

The CGMA Program journey has made me a better professional.

I recognize that I have a greater appreciation and understanding of the role of management accountants. I apply what I have learned every day to enhance the value I bring to my organization.

Jeffrey Mitch, CPA, CGMA Internal Audit Manager, American Eagle Outfitters Inc. © 2017 Association of International Certified Professional Accountants. All rights reserved. CGMA and Chartered Global Management Accountant are trademarks of the Association of International Certified Professional Accountants and are registered in the United States and other countries. The design mark is a trademark of the Association of International Certified Professional Accountants. 22726B-326

U.Va.’s second appearance

VSCPA

2020–2021 CHAIR OF THE BOARD

Henry Davis III: CPA, jazz lover, #girldad, yard sale fanatic Henry Davis

III, CPA, a native Virginian, was born and raised in Sandston. Becoming chair of the VSCPA Board of Directors is a goal he set for himself some time ago, and an honor he couldn’t have imagined when joining VSCPA back in 1998.

Can you tell us a little about your career path?

I initially majored in electrical engineering because math and science were my strongest subjects, but my heart wasn’t in it. I remembered taking an accounting class in high school and really liked it, so I pursued the school of business at U.Va., got in, and the rest is history. After graduating from U.Va. with a degree in accounting, I went into auditing at KPMG for a couple of years and obtained my CPA license there. I transitioned into corporate finance as an accounting manager at SMG, the management company for the Richmond Coliseum, and stayed two years before accepting a controller position at the Greater Richmond Transit Company. I spent 13 years there, rising to the CFO position, before accepting the Director of Finance position at VCU. Just to keep me on my toes, I’ve been running my own tax practice for 20 years.

What was us your experience taking the CPA Exam?

We were all jammed packed in a room and at that time you could only take it twice a year. I passed the first two sections on the first go-round and the other two the next testing window.

What do you love most about being a CPA? I love helping people by offering advice or consulting that can assist their business, as well as them personally, making a bigger impact in the world.

What is one of your biggest professional accomplishments so far?

When hired at VCU there wasn’t an accounting infrastructure in place. I spent the first year building one from the ground up and ensuring staff were armed with the necessary budgetary information to make informed decisions. Now everyone feels empowered and accountable.

What do you feel are the top challenges facing the profession today?

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The first is how technology’s rapid pace of change has forced CPAs to rethink what they do and how they provide value. It is truly a disruptor in the profession. The second Henry in a home selfie. is the lack of diversity in the profession, something that has always been a struggle. The third challenge is the negative and inaccurate perception of the profession and the CPA role.

What drove you to get involved with VSCPA and become chair?

I wanted to participate and network with people in my profession and thought becoming a VSCPA member and Richmond Chapter member would provide great opportunities to meet people across the state and help the profession improve.

What are you goals for the VSCPA in the upcoming year?

I truly believe the Society is going in the right direction with the focus on the 2025 vision over the years. I see myself as a facilitator in fulfilling their mission of empowering members and the profession to thrive. I also think it is incredibly important for the Society to continue its efforts in ensuring a positive perception of the profession to drive more young people into considering accounting as a future career.

When you are not working, how do you enjoy spending your time?

I love spending time with my three daughters, Paris, 18, Hayley, 16, and Candice, 11 (definite #girldad). I also like listening to jazz — like old school jazz — 30s and 40s Duke Ellington and Louis Armstrong jazz. I took a jazz class at U.Va. to learn more about its history and I was hooked. You can often find me at yard sales digging around trying to find old records. A future goal is to check out New Orleans and experience their jazz scene. n

Find contact info for the VSCPA Board of Directors at vscpa.com/vscpa-board-directors.

VSCPA

2020–2021 EDUCATIONAL FOUNDATION CHAIR

Dianne Guensberg: CPA, dog lover, bookworm, gardener Dianne Guensberg,

CPA, began her VSCPA involvement in 2011. During her career, she executed the first IRS audit and even found herself auditing in a cave. Dianne has a menagerie of dogs (check out her photo!), loves gardening and is an avid reader — a hobby shared with her daughter.

Where did you attend college and why did you become a CPA? I attended Mary Washington University with the intention of becoming a lawyer. After several classes and “subtle” molding from my dad, a CPA, I decided to go into accounting. My dad taught me to do individual taxes which started my passion for accounting, and it also gave me a great excuse to transfer to George Mason University where my husband was already enrolled.

After two years of working, I took the Exam and it was painful. The first time I thought if I slept with my Gleim book under my pillow, I could pass, but it took a review course to get me there — it was a humbling experience.

What drove you to become the Foundation chair?

It is crucial we help those who can’t afford an accounting education by providing an opportunity to attend college and succeed as a CPA, as well as support individuals wanting to pursue a Ph.D.

What are your goals for the VSCPA Educational Foundation in the upcoming year?

My main goal is to increase awareness and fundraising capabilities — ensuring members understand the importance of donating.

With that, we need the right technology in place, so members can donate quickly and easily. n

Find contact info for the Educational Foundation Board at vscpa.com/educational-foundationboard-directors.

Can you tell us a little about your career path?

After college, I was lucky to find an internship at the U.S. Government Accountability Office (GAO) and spent most of my career there. We had a lot of Big 8 clients and helped with auditing methodology. After GAO, I worked for Grant Thornton before retiring to be more available for my family. I still do contract work for Grant Thornton and a few other clients. I also manage a side gig doing taxes primarily for family and friends.

Blue crab illustration

What do you love most about being a CPA? I loved working with federal entities and GAO’s audit work. I felt like I was doing good work by improving their controls and operations. I’ve always been motivated by small improvements, which can make a big difference.

What do you feel are the top challenges facing the profession today?

The biggest challenge is inspiring young people to become CPAs and ensuring students acquire vital critical thinking skills. That’s the bread and butter of the accounting role, especially in auditing.

Dianne at her home office in McLean with BoBo, Bing and Bonnie.

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VSCPA

Congrats, new 40-Year Members!

The VSCPA will welcome 59 new 40-Year Members into the fold at the VSCPA Honors & Awards ceremony to be scheduled this fall at the new VSCPA Learning and Innovation Center. This designation is bestowed upon members in their 41st year of consecutive membership. These members have shown amazing dedication to the profession!

Sharon S. Gray, CPA, Winchester Richard J. Harrison Jr., CPA, Portsmouth Douglas L. Hawpe, CPA, MBA, Staunton Sharon W. Horne, CPA, CGFM, Carrollton Henry R. Hortenstine III, CPA, Richmond Edward S. Jones, CPA, CGMA, Virginia Beach Michael Owen Kingsbury, CPA, Charlottesville T.G. LaRossa, CPA, Virginia Beach Bernard K. Leister, CPA, Henrico Richard J. Leonard, CPA, Fairfax Bonita A. Lindenberg, CPA, Virginia Beach David B. Lowen, CPA, Roanoke James L. Martin, CPA, Chantilly Louis K. Matherne Jr., CPA, Glen Allen James G. McConnell, CPA, CGMA, Free Union Maureen A. McKay, CPA, CFP, Richmond Robert M. Moore Jr., CPA, Suffolk Phillip B. Payne, CPA, Arlington Stephen C. Pettit, CPA, Winchester Robert R. Raymond, CPA, Richmond

Kathy A. Ricker, CPA, Herndon Carl E. Rickman, CPA, Saltville Roy D. Ryder, CPA, CGMA, Roanoke Stephanie S. Saunders, CPA, Virginia Beach Dwight Shelton Jr., CPA, Blacksburg Russell T. Shores, CPA, Roanoke Janet M. Shumaker, CPA, Charlottesville David M. Silvers, CPA, Forest James K. Smith, CPA, Annandale Richard G. Smith, CPA/ABV, Williamsburg Larry P. Sneed, CPA, South Boston Willard J. Snoeyenbos Jr., CPA, Bumpass William R. Spears, CPA, CGMA, N. Chesterfield Mark B. Suiter, CPA, CGMA, Hampton Thomas A. White, CPA, Staunton Edward D. Williams, CPA, Reston Everett O. Winn, CPA/ABV, CVA, Mechanicsville William J. Withrow, CPA, Covington Hal L. Young, CPA, Fairfax

+++++++++++++ +++++++++

Mark J. Adams, CPA, Newport News John M. Bean, CPA, Virginia Beach Peter M. Becker, Alexandria William B. Bradshaw, CPA, CGMA, Richmond William C. Campbell, CPA, Fincastle Albert M. Casciello, CPA, New Bern James D. Clark Jr., CPA, Rockingham Robert W. Clark II, CPA, CGMA, Haymarket Steven N. Cole, CPA, Wise Steven M. Collins, CPA, Fairfax Patrick E. Corbin, CPA, Chesapeake Duffie G. Cox, CPA, Gate City Michele Craig, CPA, Richmond Paul Crepeau, CPA, CGMA, Norfolk Ward A. Dean Jr., CPA, Lynchburg David W. Didawick, CPA, Staunton Dennis G. Donovan, CPA, Woodbridge Carl F. Flanary II, CPA, Henrico Barbara L. Franko, CPA, Charlottesville Robert A. Gary IV, CPA/CITP, CGMA, Richmond

CONGRATULATIONS 2020 AWARD WINNERS

OUTSTANDING MEMBER

IMPACT

RUTH COLES HARRIS ADVANCING DIVERSITY & INCLUSION

TOP 5 MEMBERS UNDER 35

Mike Gracik Jr., CPA, Keiter

Sponsored by Patricia Drolet, CPA, Councilor, Buchanan & Mitchell, P.C.

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Louise Reed, CPA, Afloat, Inc. William Barber Jr., CPA, Foundation Companies, LLC Brian Benson, CPA, Ernst & Young John Reynolds, CPA, Block.one LLC Lauren Sipple, CPA, KPMG John Waters, CPA, Wall, Einhorn & Chernitzer, P.C.

VSCPA

Congrats to the following members PROMOTIONS Brad Hoffman, CPA, has been named co-managing partner at DeLeon & Stang in Gaithersburg, Md.

APPOINTMENTS & AWARDS

Brad Hoffman, CPA

Mark Wiseman, CPA, a partner at Brown Edwards in Roanoke, was appointed to the American Institute of CPAs (AICPA) National Peer Review Committee.

FIRM NEWS Knapp & Co, CPA, in Virginia Beach, has officially changed its name to Blue Orange CPA Group.

IN MEMORIAM Joan Aaron, CPA, a VSCPA Life member from Newport News. She was a partner for many years at Aaron Roesen & Co. and ultimately retired from Malvin, Riggins & Company, PC. The year she took the CPA Exam, she earned the highest grade in Virginia.

Joan was a tireless champion for the CPA profession.

She was the first woman to serve on the Virginia Board of Accountancy, ultimately becoming chair. At the VSCPA, Joan served on many committees throughout the years, most recently the Diclosures Editorial Task Force. She continued to volunteer and write articles well into her retirement. She was preceded in death by her husband, also a VSCPA life member, Leonard Aaron, CPA. Samuel Derieux, CPA. See page 38 for more.

THE VSCPA’S NEWEST VIRGINIA CPA LICENSEES Sarah Baldwin, CPA, Arlington Cali Busch, CPA, Charlottesville Erin Corey, CPA, Fairfax Station Millie Curran, CPA, Round Hill Brian Eck, CPA, Chantilly Rachel Ellis, CPA, Washington, D.C Tyler Famiglietti, CPA, Arlington Ann Hoerichs, CPA, Moseley Rikki Holcomb, CPA, Arlington Hyun Hee Kim, CPA, Henrico Timothy Kviz, CPA, Potomac Falls Ashley Kirby, CPA, Richmond Tracy Lonstein, CPA, MPA, Arlington Michele Lorah, CPA, Gainesville Kalyani Madhu, CPA, Glen Allen Hannah Reinhardt, CPA, Richmond Danielle Richtarich, CPA, Arlington Jay Saffran, CPA, Fairfax Station Aliya Sanderson, CPA, Macclesfield, N.C. Marvell Seay, CPA, Richmond Matthew Smith, CPA, McLean Zachary Sterling, CPA, Richmond Dionisio Trigo, CPA, Arlington Asadur Tufekci, CPA, Vienna Benjamin Warpinski, CPA, Arlington Rose Yaguchi, CPA, Reston List from Feb. 1, 2020, through March 30, 2020.

NEWS TO SHARE? We want to hear from you! Email disclosures@vscpa.com with news of member awards, appointments or job changes. We also print firm news, such as M&A and community service activities.

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VSCPA

Staff news Pictured clockwise: ANNIVERSARIES May 15: Chief Operating Officer Maureen Dingus, 13 years June 5: Employer Outreach Specialist Janie Medley, 14 years June 6: Member Services Assistant Doris Pennington, six years June 19: Senior Manager, Finance & Administration Diane Jones, 14 years

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OPEN VOLUNTEER OPPORTUNITIES We can’t run without members like you! By volunteering with us, you'll gain additional leadership experience, forge new friendships and give back to the profession with your time and expertise. Visit vscpa.com/volunteer for the latest opportunities. We are currently looking for volunteers in these areas:

Classified ads are a great way to reach VSCPA members — 94 percent rate the information in Disclosures as excellent or good. What are you waiting for? Contact us at classifieds@ vscpa.com or visit vscpa.com/

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• Provide a Testimonial • Media Ambassador

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SPOTLIGHT

Remembering Sam Derieux, CPA A gifted writer, Derieux wrote a history of the VSCPA covering the second half of the 20th century, a companion piece to the 1900– 1950 history written by W.P. Hilton, the Society’s first president.

He also loved to write poems, jingles and limericks.

“We have lost a true gift to the profession,” said VSCPA President & CEO Stephanie Peters. “It’s impossible to quantify how much Sam has meant to the Society and its members over the last 60 years. Even after retirement, Sam was always interested in how the profession was changing and evolving, and he always maintained tremendous influence with the profession’s leaders across the country. He could see the humorous side of any situation, but above all, he treated everyone with dignity and respect.”

Long-time member

Samuel Derieux, CPA, a VSCPA past president, died March 8, 2020. Derieux was a tireless champion of the accounting profession who helped shape the modern face of the VSCPA and American Institute of CPAs (AICPA). Here are just a few of Derieux’s accomplishments: > He joined the VSCPA in 1953 and obtained lifetime membership in 1993, making him a VSCPA member for more than half of the Society’s existence. He ascended to serve as VSCPA president in 1962–1963. > Derieux is the only person ever to serve as both president and chairman of the AICPA Board of Directors, having served as the AICPA’s leader the year the organization changed the name of the position (1973–1974). > He was honored by the AICPA with a lifetime seat on the AICPA Council, and regularly attended Council meetings.

> He is the only AICPA member known to have attended the celebrations for the organization’s 75th, 100th and 125th anniversaries.

Derieux enrolled at the University of Virginia after serving in the Navy during World War II. He began his career with a four-year stint as a bank examiner at the Federal Reserve Bank of Richmond before spending 25 years as an accounting generalist at Richmond firm Fairbank, Knapp & Co. before striking out on his own as a sole proprietor. He later joined forces with Don Watson to form Derieux & Watson, which became Derieux, Baker, Thompson & Whitt before eventually joining Deloitte in a merger.

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VSCPA Past President Stephanie Saunders, CPA, shareholder at Saunders & Saunders, PC, in Virginia Beach, concurred. “Sam was a true Virginia gentleman and lived a full and well-respected life. When I was on AICPA Council, Sam was a mentor to all who had the opportunity to serve on Council. AICPA leadership and staff knew Sam well and when he had something to say, everyone listened! He also had a quick wit and many of his ‘poems’ were shared among his colleagues.”

Larry Samuel, CPA, a former partner of Dereiux’s and past VSCPA president says: “I became Sam’s partner through a merger of firms.

But I became his friend through the many hours we were able to spend together mostly not working. I, like many others in our profession, am so grateful to have known Sam. You can choose almost any wonderful adjective you like to fill in the blank when describing Sam and I have heard so many of them in recent days.

A Virginia gentleman, a giant in his profession, a legend, role model and the examples go on and on. All of them are true and we recognize that Sam was special and unique and not just as a CPA. I believe we can all honor Sam by following his example and remembering to choose our words carefully (like he always did), use them wisely (and at the proper time) and be kind to everyone. We will all miss Sam Derieux.” n

DONATE IN SAM’S MEMORY The VSCPA is establishing the Samuel A. Derieux, CPA, Memorial Scholarship to honor Sam’s contributions to the profession. The scholarship will be awarded once a $50,000 minimum threshold is reached. Thank you to Deloitte for their lead gift. To donate, visit the Online Donation Form at vscpa.com/ef-donation and choose the Sam Derieux Scholarship from the dropdown menu, or call us at (800) 733-8272.

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