Line Items

Finance moves beyond the numbers

In a fast-paced environment, the finance function of organizations is becoming more than just core accounting.

While accounting is still a function of finance, that team is now “capable of assessing a broader range of information and becoming a more influential player within an organization,” according to a new Chartered Global Management Accountant (CGMA) report from the Association of International Certified Professional Accountants.

New technologies can enable finance to take on a broader role, moving from working in isolation and just issuing reports to working with other groups to develop and deploy solutions. To accomplish this change, CFOs and their teams must implement “more fusion between tasks and activities carried out within the finance function, and far greater interaction with the business.”

And if the role of the finance team is changing, that means you have to change with it. Competencies and mindsets require a shift, especially as technological automation becomes the norm. Workers must constantly open themselves up to learning new things as technology replaces old skills and knowledge.

Learn more in these reports: “The Changing Role and Mandate of Finance” and “Changing Competencies and Mindsets,” available in the Resources section of cgma.org.

DID YOU KNOW?

By March of 2023, Sweden will be the first society to go cashless. Even now, cash makes up only around 1 percent of the value all payments made and less than 20 percent of store transactions. In the past decade, the cash in circulation has decreased by around 50 percent. Sweden was an early adopter of using bank cards for payment.

TICKER

55

The percentage of the costs students and their families pay at four-year Virginia colleges and universities.

33

The percentage that Virginia would like students and families to pay, as outlined in the state’s cost-share goal.

37

The percentage of Americans who described U.S. financial markets as stable during the first months of 2018, despite significant fluctuations.

48

The percentage of U.S. adults who believe a volatile financial market is a good way to make an investment profit.

9

Washington, D.C., ranking on the list of top U.S. cities for meetings and conventions. Orlando was No. 1.

3.5

The number of times women are more likely to outlive their spouses than men.

50

The percentage of widows who face a 50 percent or more decline in household income.

2.2 MILLION The number of college students ages 35 or older in 2015.

CHARITABLE GIVING IN AMERICA

More Americans are giving to charities and philanthropies than ever before. Charitable giving in 2017 totaled $410 billion, a 188 percent change from 1977, and total household giving also climbed — from $120 billion to $287 billion.

Despite these gains, the amount of household giving as compared to total giving has declined, from 84 to 70 percent. That means charities are relying more and more on other giving sources, like corporations and foundations.

Because the Tax Cuts and Jobs Act of 2017 reduces the number of taxpayers who itemize, experts believe household charitable giving will decline, which could affect small and medium-sized nonprofits the most, particular local charities. (See page 24 for some ways your clients can still receive tax benefits for charitable giving, however.)

Check out “The Growth in Total Household Giving is Camouflaging a Decline in Giving By Small and Medium Donors,” from Nonprofit Quarterly, at tinyurl.com/ NPhouseholdgiving.

Have you seen it? The new vscpa.com is now live! SO A DATA BREACH HAPPENED. YOU HAVE TO TELL TAX!

Despite your best efforts, a data breach may happen. But you can’t put your head in the sand. A new law passed by the Virginia General Assembly effective July 1 now requires tax professionals to report any breach of taxpayer data within a “reasonable time period” once the breach is discovered. In addition to telling the affected parties, you are obligated by law to call the Virginia Department of Taxation (TAX).

So keep the Tax Professionals Identity Theft Information number handy: (804) 404-4232. TAX will want to know your company name, your name and your Tax Professional’s Identification Number (PTIN), as well as information on the breach, like the date it occurred, the number of people affected, etc. TAX officials will work with you to determine any further action once they have the details.

Plan ahead now: You may need a REAL ID

Virginia has begun issuing driver’s license and indentification cards that are compliant with REAL ID. So, will you need one? That depends. Due to a new federal law, REAL ID-compliant identification will be required to board a domestic flight beginning Oct. 1, 2020, and to access secure federal facilities. A U.S. passport, however, will suffice in place of the REAL ID. If you do not have a passport and will fly domestically in 2020 and beyond, you may consider hitting the Virginia Department of Motor Vehicles and getting an updated ID. Standard driver’s licenses will still be fine for Virginia-specific transactions, such as voting, cashing a check and driving.