Disclosures: September/October 2018

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BLOCKCHAIN:

WHAT AND WHY FOR ACCOUNTANTS

18

Will blockchain, a transaction ledger distributed over a computer network, disrupt the accounting world?

24 Taking the Pulse of the Affordable Care Act

A new law in Virginia could help make health insurance more affordable for sole practitioners.

30 How to Handle Nonprofit Contributions

New guidance from the Financial Accounting Standards Board means big changes for nonprofit accountants.

connect.vscpa.com

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

The Virginia Board of Accountancy disclosures

disclosures.vscpa.com disclosures@vscpa.com

SEPTEMBER/OCTOBER 2018

Volume 31, No. 4

Managing Editor

Jill Edmonds disclosures@vscpa.com

Contributing Editor

Chip Knighton cknighton@vscpa.com

Public Affairs & Communications Director

David Bass dbass@vscpa.com

Editorial Task Force

Olaf Barthelmai, CPA

Cheri David, CPA

Mike DellaRipa, CPA

Melisa Galasso, CPA

Genevieve Hancock

Karen Helderman, CPA Alesia Lewis, CPA

Gabriele Lingenfelter, CPA

Harold Martin Jr., CPA

David Peters, CPA

Mark Plostock, 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 © 2018 Virginia Society of CPAs.

VSCPA Preferred Providers

In this issue, I’d like to discuss the regulatory body that significantly impacts all of our members: The Virginia Board of Accountancy (VBOA). We’re proud to have a positive, professional relationship with the VBOA as we each work to ensure all Virginia CPAs meet the highest ethical and professional standards.

We have a long history with the VBOA — the VBOA was created in 1910, one year after the VSCPA was formed in 1909. Over the years, both organizations have worked hard to develop a set of rules and regulations that not only protect the public who use CPA services, but also reflect the constantly changing environment in which we work.

Over the decades, the VSCPA has always provided VBOA board nominations for the governor’s consideration. We take this process seriously, and our goal is to nominate fair-minded individuals who understand the profession and are open to different perspectives and new ideas.

We begin the nominations process with a call for candidates from VSCPA leaders, members and staff. From there, a VSCPA committee reviews the applications and interviews potential nominees. We then schedule a meeting with the Virginia Secretary of the Commonwealth to discuss our nominees and learn of the administration’s needs and preferences regarding board service. Ultimately the governor has final say, and we’re proud to have a 70 percent success rate in getting our nominees onto the board.

Why is it so important to have a say in VBOA processes and decisions? The VBOA plays a vital role in ensuring the profession is performing to the highest standard, and that role can have implications for all Virginia CPAs. Not only do we need board members who are knowledgeable, fairminded and experienced in dealing with difficult situations, we need regulators

who also understand the future of the profession and how its services evolve. We need members who can guide the profession in a proper, fair way, and who will make sure that the regulations it enacts are not hindrances.

We believe the VBOA has a broad perspective and is a leader among boards of accountancy in the country, and we want to ensure that continues. All VBOA meetings are open to the public, and we attend every one. We go so you don’t have to, but if you want to, you should attend. It’s informational and useful.

We’re grateful for all our members who answered the call to serve on the VBOA and its committees. And we’re grateful for the productive relationship we have with VBOA staff as we work on our vital common goals. n

Stephanie Peters, CAE, has served as VSCPA president and CEO since 2007.

speters@vscpa.com @StephPeters connect.vscpa.com/StephaniePeters

line items

Goodbye, CPA Day of Service. Hello, #CPAsGiveBack.

recaps of activities with us on an ongoing basis. Submissions will be included in our #CPAsGiveBack campaign where we share members’ service projects on social media and in Disclosures (image quality and space permitting).

Here are the ways you can make sure we publicize your event:

TICKER

7

Virginia’s ranking by Kiplinger as one of the best states to retire.

11.3

The percentage that Virginia-residing seniors’ household incomes are higher than the national average.

Kris McMackin, CPA, and her staff volunteered at the Project GROWS farm in Augusta County in July. Send your volunteer pictures to the VSCPA and we’ll publicize them.

The VSCPA is making changes to its annual CPA Day of Service event, traditionally held the third Friday in September as the culmination of Virginia CPA Week.

Essentially, we’re eliminating the standalone CPA Day of Service event. However, we prefer to think of it as an expansion and a relaxing of requirements. Our members and firms are very active in communities with service projects, and we want to acknowledge and celebrate that service throughout the year without limiting it to one day.

With that in mind, we’re asking members and firms to share photos, videos and

• Email pictures and videos to VSCPA Communications Manager Chip Knighton (cknighton@vscpa.com) and Student & Member Engagement Specialist Lauren Simonetti (lsimonetti@vscpa.com).

• Post pictures, videos and information on the VSCPA Facebook page (facebook.com/VSCPA) using the #CPAsGiveBack hashtag.

• Tag the VSCPA in photos and videos on Twitter (@VSCPANews) and Instagram (@VSCPA) using the #CPAsGiveBack hashtag.

We’re still committed to publicizing our members’ efforts in the community! We’ll share any submissions we receive to help showcase the ways VSCPA members give back to the communities where they live and work. Thanks to our members for being such great representatives of the profession!

GO INSIDE 2017–2018 WITH THE VSCPA

The VSCPA’s State of the VSCPA annual report is now available online! The report goes in-depth on the VSCPA’s activities during fiscal 2018, highlighting innovation, learning, advocacy and the activities of the VSCPA Educational Foundation and the VSCPA Political Action Committee. Visit vscpa.com/StateoftheVSCPA to view the report and the VSCPA’s audited financial statements for 2017–2018.

30

The median age in America, an increase of 0.8 years since 2000.

2035

The year in which Americans over age 65 will outnumber children.

$25 billion Virginia tourism revenue in 2017, an increase of 4.4 percent over 2016.

$68 million

The amount spent per day in the Commonwealth by domestic travelers.

$600 million Record profits reported by the Virginia Lottery in fiscal year 2017.

48

The number of Virginia lottery tickets that won prizes of at least $1 million in 2017.

10 The number of VSCPA chapters.

EXCELLENT EXCEL

Documenting and displaying Formulas

As they say, the devil is in the details. Well, for Excel, the devil can lurk within formulas — which is why CPAs give much time and attention to reviewing and documenting what each formula does. Besides hitting “Ctrl” + “~” to make all formulas temporarily visible, users can use two functions, N and FORMULATEXT, to add documentation to any formula and permanently display a formula, respectively.

Add the N function to the end of any formula to include documentation directly to the cell with a formula without affecting the results of the original formula. For example, in cell A3 you could write =(A1+A2)+N("Adds the two numbers above"). A3 will still display the sum of the amounts in A1 and A2 and yet retain the documentation within the cell about what the formula is attempting to achieve.

Additionally, CPAs can use the FORMULATEXT function to show the formula in another cell. For example if you write =FORMULATEXT(A3) in any cell, other than A3, it will return and display the formula in A3.

Combining the two examples above, a CPA can use the N function in A3 to document the goal of that formula and use the FORMULATEXT function in B3 to display the formula in A3 along with added documentation. If practiced correctly, these functions can help head off any unwanted devils.

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

TAX takes aim at fraud year-round

The Virginia Department of Taxation (TAX) works all year long to research and develop tools and processes to keep taxpayer information safe and minimize fraudulent returns. Its Refund Fraud Team aims to stay one step ahead of sophisticated hackers and thieves. In 2018, the team has implemented:

1. Online refund verification: Just by having taxpayers answer a few questions, eligible returns can now be verified online. This year the tool helped reduce processing turnaround time by 28 percent.

2. Online document submission: Taxpayers who had returns stopped for review can upload documentation, which speeds up the review process. This filing season, more than 17,000 taxpayers used the service.

3. Automated return release: TAX can now release some returns after checking them against a state, federal and commercial database. The enhancement led to 9,000 returns being automatically released this past season.

Check out detailed info on how TAX works to protect taxpayers at tax.virginia.gov/refund-fraud-prevention.

from the IRS...

The U.S. Internal Revenue Service (IRS) is also taking aim at cybercriminals. A new publication, Data Security Resource Guide for Tax Professionals (Publication 5293), provides basic information so tax pros can protect their clients. In addition, the IRS updated Safeguarding Client Data (Publication 4557) to reflect current threats. Find them both at irs.gov.

advocacy

No special session

Contrary to previous reporting, it now appears that there will be no special Virginia General Assembly session this fall related to tax reform, for several reasons.

The U.S. Internal Revenue Service (IRS) has not yet released all its guidance on federal tax reform, which means Virginia would be reading from incomplete sheet music in trying to complete its own reform. We simply don’t have all the information we need yet.

In discussions with the VSCPA, Gov. Ralph Northam and Secretary of Finance Aubrey Layne, CPA, emphasized the need to differentiate between tax conformity and tax reform. (This was an issue familiar to the VSCPA after its educational efforts with the large crop of freshman legislators during the 2018 session.) The administration believes — and the VSCPA agrees — that it doesn’t make sense to tackle state tax reform before conforming to the U.S. Internal Revenue Code (IRC), and as such, current plans are to tackle federal reform with a traditional conformity bill in the 2019 session.

The Northam administration has a commitment to addressing conformity in that traditional fashion — emergency legislation introduced at the start of the session. We hope there will be information available well before that session on what to expect.

The VSCPA and the administration are in agreement on attempting to achieve as much conformity as possible. We are committed to trying to address equity issues created by the differences between the Virginia tax code and the IRC. We will pass along further information as we have it.

VOTERVOICE: CONNECTING MEMBERS WITH ADVOCACY

As you can see on page 16 of this issue, we’re launching our new website to help us better serve our members’ needs. Advocacy, as one of the four core strategies identified in our VSCPA2025 strategic framework, is getting an upgrade along with the rest of our programs in the form of the VoterVoice system.

VoterVoice is a grassroots advocacy system integrated into the new site that will allow the VSCPA to engage and communicate with members in a more direct, regular way. That means communications and opportunities on advocacy campaigns, issues and calls to action.

We’ll use VoterVoice to engage with you on opportunities like contacting your legislators or sharing thoughts and opinions on issues that affect the CPA profession. You’ll use it as a simple way to engage with our advocacy efforts and reach out to elected officials. We’ll have messaging ready for you that you can customize, but you don’t have to. If you want, you can just sign in, click and send. It’s that easy.

VoterVoice is an easy way for you to take action on legislative and regulatory issues and an easy way for us to know what you’re doing to help our efforts. Keep an eye out for further communications on how you can use VoterVoice to get involved!

August marked the end of an era at the Virginia Board of Accountancy (VBOA), which must now replace Executive Director Wade Jewell.

Jewell left the agency effective Aug. 1 to join the executive team at the National Association of State Boards of Accountancy (NASBA) as president of Aqueo International and director of NASBA international evaluation services. He had spent 30 years as a state employee in finance and operational management, the previous nine of which came as the head of the VBOA.

The VBOA now begins the search for Jewell’s replacement. Director of Operations Mary Charity is running the organization in the interim.

DIRECTOR JEWELL DEPARTS FOR NASBA

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“CAMICO’s expertise, stability, and commitment to CPAs provide strong reasons for the VSCPA to choose CAMICO as its sponsorship program, year after year. The company assists policyholders with a wide variety of practice and risk management issues specific to CPAs, and the society’s partnership with CAMICO supports our efforts to provide strong benefits to our members.”

Stephanie Peters, CAE VSCPA, President & CEO

virginia taxation

After South Dakota v. Wayfair

As reported in the March/April issue of Disclosures, the U.S. Supreme Court agreed to hear a case that had the potential to substantially change the way states and localities impose sales and use tax. The Court heard the oral arguments on April 17 — coincidentally or not, Tax Day — and issued its opinion on June 21. At issue was whether states may impose sales tax collection requirements on out-of-state businesses that have no physical presence in the state but conduct sales to in-state customers.

In a 5–4 decision in South Dakota v. Wayfair, Inc., the Court overturned its prior rulings in the Quill (1992) and National Bellas Hess (1967) cases and said that physical presence is not required to impose sales/use tax collection requirements on out-of-state (remote) businesses selling in the state. The Court found the physical presence standard “unsound and incorrect.”

The Court’s decision will have far-ranging tax implications and accounting impacts on businesses; however, it is too soon to know exactly what they are.

What we do know, though, is that businesses selling taxable goods and services may have tax collection requirements in states where they may not have in the past. Currently, approximately 22 states have laws that requires out-of-state sellers with sales above a certain threshold, typically $100,000 during the previous 12 months or calendar year, or separate sales transactions above a certain threshold (typically 200) to collect tax on sales to in-state customers. Some states have asserted those requirements are effective immediately (if their laws were already effective); others have effective dates in the near future.

States without the economic nexus statutes or other statutes that can be construed as allowing the taxation of remote sales are slowly announcing their plans to address the issue. Most have said they are carefully considering their current laws and determining next steps. In the Wayfair case, specifically at issue was South Dakota’s law that required out-of-state sellers with sales exceeding $100,000 or 200 separate

The Supreme Court ruled on a landmark sales tax case. Now what?

Terry Barrett, CPA

virginia taxation

transactions in the state in the previous year to collect the tax. Most of the states that currently have economic nexus laws have similar thresholds, and while small businesses are hoping the reporting thresholds will be similar (or higher) in other states, this is an area of uncertainty. Some states could assert that a single sale or de minimis amount of sales could create reporting requirements.

There is concern regarding the potential retroactivity of the Court’s ruling. While the specific issue under consideration in the Wayfair case was South Dakota’s law, which did not provide for retroactive application, there is concern that states could assert that sellers are responsible for taxes on sales in prior periods.

The new tax collection requirements will impact most businesses but in various ways. Obviously, if a business is selling tangible goods at retail in several states, that business will likely have additional tax registration, collection and reporting requirements. The question is: will there be thresholds, or will tax have to be collected on the first dollar of sales? Time will tell, but businesses selling at retail should starting thinking about and preparing for potential tax collection requirements. While most states tax tangible goods, the rules may vary depending upon the particular item sold, and any ancillary charges, such as any services that may be provided, shipping, delivery, late fees, etc. It is noteworthy that some businesses may have previously had physical presence in the state, such as through employees meeting with customers, sales people soliciting sales, independent contractors selling or performing repair services, etc. Some states have announced that while their economic nexus laws may have prospective application, businesses with prior tax filing requirements are not entitled to the prospective filings. Thus, amnesty programs and voluntary disclosure programs should be considered by such businesses for potential prior-period tax requirements.

Businesses providing and/or selling services will also be affected. While Virginia does not tax many services provided on a standalone basis, such services may be taxable in other states. Popular services that are taxed include computer consulting, data processing, information services (e.g., subscription services) and lawn care, to name a few. In addition, many states tax computer software delivered electronically, Software as a Service (SaaS) and digital products (ebooks, apps, music, etc.).

Accordingly, a Virginia-based business previously without sales tax collection responsibilities may be surprised at its potential new sales responsibilities. Businesses should carefully consider what they are selling and the services they are providing and where their customers are. Most of the current thresholds are either $100,000 in sales or 200 separate transactions. This means that a single sale in excess of $100,000 could subject a business to

tax collection and reporting requirement in a state. Most states require the filing of returns even if no tax is due, so there will be additional and on-going administrative requirements.

And businesses on the purchasing end will also be impacted. Some sellers, in their effort to comply with all the various requirements, may not invest the time and effort into ensuring they are collecting the proper taxes. This may result in the overcollection/overpayment of taxes. Invoices, particularly for large purchases, should be reviewed to ensure the proper tax is being billed and paid.

There are concerns, too, regarding potential income/franchise tax implications of the Wayfair decision. Historically, the Court has refused to hear challenges to state income/franchise tax economic nexus laws, which has suggested the Court agreed with the concept. However, now with its confirmation that economic nexus is appropriate for sales tax requirements, the Court may have further signaled its acceptance of economic nexus for income/franchise purposes. This may encourage states to consider adopting such laws. More economic nexus income laws coupled with states’ reactions to the federal Tax Cuts and Jobs Act could substantially complicate state income/franchise tax requirements.

The dissenting opinion of the Court in Wayfair, while not rejecting the fact that the Quill decision was incorrect, was focused more on a different approach to remedying the remote seller tax collection (or lack thereof) situation. The opinion suggested that Congress, rather than the Court, should address the issue. Congress may still be asked to address key issues that are unclear, such as whether thresholds similar to South Dakota’s should be imposed, whether the tax enforcement requirements are prospective only, etc. Some view Congress’ involvement as important to ensuring small businesses are protected from being overburdened by tax collection and reporting requirements.

The full effect of the Supreme Court’s ruling in Wayfair likely will not be seen or felt for some time. Much still needs to be decided, whether by the states, Congress or possibly the courts. However, businesses cannot afford to sit by wait until the dust settles as, one by one, the states may come a-calling. So be ready! n

Terry Barrett, CPA, is a tax senior manager at Keiter in Glen Allen. She focuses on state and local tax consulting, with a special interest in and emphasis on sales and use tax in the multistate arena.

tbarrett@keitercpa.com connect.vscpa.com/TerryBarrett (804) 273-6254 keitercpa.com

Hitting the talent bullseye

Picture a pyramid. Wide at the bottom, narrow at the top, perfect for burying royalty. (That last part may not be entirely relevant to this discussion.) For years, the shape has been an apt representation of the structure of a public accounting firm — a large class of entry-level accountants at the bottom, some of whom rise to the mid-level manager role, even fewer of whom make partner. The career progression worked, and firms rarely had much difficulty filling out the pyramid.

Problem is, the pyramid isn’t the shape of things to come. The firm of the future is more of a diamond or hexagon, with the bottom corners of the pyramid taken out by outsourcing and automation. Those two

factors are creating a tight squeeze at the bottom of the pyramid, with only a few entry-level spots necessary at most firms. But the wide mid-career class remains.

The issue isn’t new. American Institute of CPAs (AICPA) President & CEO Barry Melancon, CPA, CGMA, has been discussing it for a while now, and he’s not the only one. As he puts it, the key to filling firms’ staffing needs is the development of a “highly skilled, digitally proficient middle layer.” But without entry-level positions where young CPAs can learn the ropes, how do we create that layer?

That’s what the VSCPA, AICPA and numerous other professional groups are trying to figure out. One part of a potential solution could lie in the extra 30 hours (on

Firms are challenged today to find the right talent, and the skill sets needed of entry-level staff are changing. The path to the CPA may even change because of it.

Chip Knighton

top of a bachelor’s degree) required to sit for the CPA Exam. The main issue with relying on those 30 hours — essentially an extra academic year’s worth of classes — is that there’s no requirement for what those 30 hours need to be. Data analytics, technology and master’s level accounting courses offer a great, useful addition to an accounting student’s skill set; tennis and basket-weaving, not so much. But many experts don’t even think those extra hours will sufficiently prepare students for the working world.

“They can pass the CPA Exam, which is fine for now, but are they really at that stage where they can use it and apply it?” asked Gabriele Lingenfelter, CPA, an accounting professor at Christopher Newport University in Newport News and a member of the VSCPA Board of Directors’ Pathway to CPA Task Force. “Do they have the critical thinking skills? Do they know what a ratio means and why it’s important for the audit? I don’t think you can get that with just a bachelor’s degree.”

DIFFERENT SKILL SETS NEEDED

Industry data bears out the concerns about hiring entry-level accountants. The 2017 AICPA Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits report (Trends) found that CPA firms hired 34,889 new accounting graduates in 2016, a 19 percent decrease from the 2015 Trends report, which reflected 2014 numbers.

To put that in perspective, the 2014 numbers were the highest since the AICPA began the Trends report in 1971, and 2016 was still the fourth-best year on record for accounting graduates to find a job. The sky is assuredly not falling.

As Melancon said, “It doesn’t mean there aren’t ample jobs. There are ample jobs. But the mix is changing.” Still, it’s hard to look at the numbers and not notice a slowdown after years of record growth, and technological advances are only going to exacerbate the trend.

“What I’m hearing from the firms is that we are expecting to see a change,” said Yvonne Hinson, CPA, CGMA, Ph.D., the AICPA’s academic-in-residence and senior director of academic & student engagement. “We’re expecting to see not only the mix change, but they’re really looking at the different skill sets that they need. [Firms are] talking about hiring more from the STEM area. They’re still hiring accounting, but they’re looking at some different skill sets.”

Technology is a major part of those changing skill sets. Data science and data analytics, as discussed in the May/June 2018

issue of Disclosures, is a major area of focus for CPA firms, which are putting their money behind those skills — witness KPMG’s Master of Accounting With Data and Analytics program, offered at Virginia Tech and eight other universities, and Ernst & Young’s Day One Ready program, which is expanding after being piloted at the University of Dayton in Ohio.

That program offers courses in Lean Six Sigma, robotics process automation, Excel power modeling, data analytics and visualization, autonomous systems, coding and mindfulness. That last item is telling, as firms are seeking graduates who can take data given to them by automated programs and interpret it in a meaningful way.

“Thinking about this as if I were advising my son, I would advise him to broaden his technical skill set, but also ensure that he’s getting the communications, the critical thinking that’s so incredibly important,” Hinson said. “If you have the data analytics skills, that’s great, but it’s putting it into context that’s important. From the university side, it’s not about having a data analytics course, but it’s about integrating data analytics into your courses so that students are learning it in the context of accounting.”

Lingenfelter doesn’t have to venture into the hypothetical to offer that kind of advice. Her daughter, Sabrina, is a junior pursuing an accounting degree at the University of Virginia. Advanced Placement credits from high school will have her close to the 150hour mark by the time she graduates, but her mother still wants her to get some additional education in addition to her degree requirements.

“I’m pushing her a little bit toward the technology side, hoping that she’ll have more experience in those areas,” Lingenfelter said. “They’re not tested on the CPA Exam right now or required by CPA firms, but that’s where the profession is going — blockchain, artificial intelligence, data analytics. I’m hoping that will help her get an edge up on the other students.”

A NEW PATH?

Accounting students who fill their extra 30 hours with classes in technology and data science will remain in demand. But larger firms are pushing even beyond that in their hiring, with STEM majors, data scientists and data analysts being brought in to work on audits. Hiring of non-accounting graduates at CPA firms has more than doubled since the Trends report began tracking that data in 2007, accounting for 20 percent of new grad hires in 2016. That means a full one-fifth of new hires at accounting firms are students who don’t have a current path to the CPA credential. u

That may not always be the case. The AICPA and the National Association of State Boards of Accountancy (NASBA) have created a joint task force to explore the possibility of an alternate pathway to the CPA credential for non-accounting graduates working at CPA firms.

“The firms are working with them to get them the base accounting knowledge they need to handle the data analytics in the context of accounting,” Hinson said, “but what’s the long-term play for these people? If they’re working on audits and protecting the public interest, we want them to have a pathway to CPA.”

The reasoning for the alternative path is to bring these professionals — many of whom, as Hinson noted, are already working on audits — under the regulatory umbrella of the AICPA Code of Professional Conduct, which is incorporated by reference into the accounting statutes in Virginia and numerous other states. With those professionals working with sensitive data and charged with protecting the public interest, leaders in the profession are beginning to see the benefit of holding them to the rigorous ethical requirements of the CPA credential.

“Two things are certain: The pathway will be equally rigorous to what is required for current CPA pathway and the credential will be equivalent for those who would come through either pathway,”

NASBA Vice President of State Board Relations Dan Dustin, CPA, said at the NASBA Executive Directors Conference in March. “A CPA will continue to be equal to a CPA.”

“We’ve been doing this for a long time,” Hinson said. “We’ve had valuation experts engaging on audits for a long time. Some of those are CPAs and some of them are not. But our goal is to make sure that the public is protected and the profession is protected. The more people that we have performing these critical functions who are CPAs, the better.”

Those non-accounting graduate hires tend to skew toward the larger firms, which are a bit ahead of the trend. The Big Four are expected to take on that diamond shape within two or three years, with larger regional firms following in four or five years and smaller firms following suit over the course of the next decade.

That trend could have knock-on effects outside public accounting as well, as entry-level jobs have led many students into a successful career in corporate finance. Without the opportunity to cut their teeth at the bottom of the pyramid, those students will need to stand out in other ways.

“I’ve never heard one of my students say they were on the bottom and didn’t make it and now they’re unemployed. I have a lot of

former students who didn’t like the hours or didn’t get promoted as fast and went into industry,” Lingenfelter said. “They change, they switch into other areas, some not in accounting anymore, but if you don’t have the bottom part for those students who are just finishing that education, is industry going to approve of that?”

PROMOTING THE CPA TO A NEW AUDIENCE

Concerns about diluting the CPA credential aside, it’s easy to spot an opportunity for the profession through this alternative path. Extending the opportunities that come with the CPA to technologyoriented students means more takers for the CPA Exam, more members for the VSCPA, the AICPA and other organizations that serve CPAs, and — perhaps most importantly — an infusion of talent with a different perspective into the profession.

“There are a lot of good students who are not even considering becoming CPAs because they don’t know much about it,” Lingenfelter said. “If we can promote our profession as something that’s really interesting, working with IT, doing fraud and working with cybersecurity, we can get the students as high school freshmen and sophomores who never thought about becoming accountants. We may attract some talent that we currently aren’t getting.”

That last sentence has been a focus for the profession and the VSCPA for years, whether it’s related to educational background, demographics or a simple lack of awareness. The Society has focused on getting in front of students through campus visits and work with educators. The “CPAs in the Classroom” initiative was discussed in the March/April issue of Disclosures, highlighting member Phil Umansky, CPA, and his visit to Hermitage High School in January.

The recently retired Umansky has been active in promoting the profession, hitting Deep Run High School in Glen Allen and Douglas Freeman High School in Henrico in the Richmond area, as well as Wakefield High School in Arlington. And several VSCPA members and staff promoted the profession at the Mission Tomorrow career fair last November, which brought more than 12,000 Richmond-area eighth-graders to Richmond International Raceway to learn about career opportunities. (The VSCPA’s lifesized Monopoly-like board, which showcased the different career paths open to CPAs, was particularly popular.)

The CPAs in the Classroom initiative is an element of the VSCPA’s Ready, Set, CPA! initiative, which highlights the diverse career paths available to CPAs and shows students how to get there. Another part of that program is the My Path to CPA video series, which features VSCPA student members interviewing established

professionals about what they do and how they found and advanced in the profession.

The next phase of Ready, Set, CPA! involves the CPA Ready workshops, which provide similar training to the VSCPA’s Leaders’ Institute, an intensive, on-campus program that was discontinued after a decade of helping college students prepare to take the CPA Exam and succeed in the profession. The CPA Ready workshops are scheduled for early 2019, with events currently scheduled at Virginia Commonwealth University in Richmond, Old Dominion University in Norfolk, George Mason University in Fairfax and Virginia Tech in Blacksburg.

The common thread of the VSCPA’s on-campus programs and the potential alternative path to the CPA credential is twofold. These initiatives help protect the health of the CPA pipeline

by expanding the pool of potential CPAs, and they keep the profession responsive to changing needs for essential services that clients demand.

“We can talk about it as an alternative pathway, but aren’t we really just meeting the needs of the profession?” Hinson said. “The profession is changing and we’re meeting the needs of the profession, and it’s always changed. It’s just changing in a different way.” n

Chip Knighton is communications manager at the VSCPA, as well as contributing editor at Disclosures magazine. cknighton@vscpa.com connect.vscpa.com/ChipKnighton @ChipKnighton

The AICPA-endorsed CPA Value Plan provides industry-leading professional liability insurance that gives you the freedom to delve into new areas of practice with the confidence your firm is covered. Program features include:

• Coverage specifically designed for small CPA firms

• Limits from $100,000 to $2 million for qualified firms

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• Optional CPA NetProtect® for cyber network damage claims and privacy breaches*

• Subpoena assistance, regulatory proceedings coverage, and more

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13695), (AR 100106022); in CA and MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services Inc.; in CA, Aon Affinity Insurance Services, Inc. (CA 0G94493), Aon Direct Insurance Administrator and Berkely Insurance Agency; and in NY, AIS Affinity Insurance Agency.

One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. “CNA” is a registered trademark of CNA Financial Corporation. Certain CNA Financial Corporation subsidiaries use the “CNA” trademark in connection with insurance underwriting and claims activities. Copyright © 2018 CNA. All rights reserved. E-12399-518 VA

A new VSCPA.com launching soon

When you visit vscpa.com one day later this year, like you do every morning, you’ll notice a difference. (You do visit the site every morning, right? There’s fresh content every day, you know.) Things will look very different, with a new menu structure and an updated aesthetic. And while not obvious, ALL of the commerce and integrated functions have been rebuilt so the heart of the site — the great VSCPA service you know and love — can really shine through!

Before you can transact or see personalized content on the site, however, we first need you to reset the password associated with your website account. This is a security best practice that will take no more than two minutes of your time. The rest of your account features will carry over, but we hope you’ll also take the opportunity to review and update any additional information, especially your communication preferences. Visit vscpa.com/ NewWebsite for instructions on how to update your password, as well as tutorials and screencasts on other site features.

HERE’S HOW TO GET AROUND THE NEW VSCPA.COM:

The four icons at the top of the screen: Menu, Log In, Cart and Search can get you basically anywhere and you can get to most of the site’s content from the Menu icon itself, as it contains links to the major areas — Learning, Membership, Resources and so forth. More on that in a moment.

You’ll use Log In to reset your password the first time you visit the site, and it also allows you to log in to your account and, in the case of new users, gives them an option to create an account.

Cart accesses your shopping cart and is where you can begin the

checkout process. The numeral indicator in the icon will update for each course, contribution, membership renewal or application you add to it.

Search allows you to search all the great courses and content the VSCPA has to offer. Note that when you scroll down the page, no matter what page you’re on, the icons will scroll with you, as will the VSCPA logo at the top middle of the screen. Clicking that will take you back to the homepage.

On to the Menu. Clicking the icon will expand it to fill your screen — clicking it again will close it — and clicking the topic names or arrows on the left will expand the sections of the menu. With the redesign, we’ve consolidated some menu choices, notably combining advocacy, chapters, volunteer opportunities and donations to the VSCPA Educational Foundation and VSCPA Political Action Committee (VSCPA PAC) in the “Get Involved” menu. The rest is fairly similar to the old site.

The right side of the menu offers commerce and accountrelated links, as well as our Career Center and more links to the Foundation and the PAC. Firm administrators will find a link to their position-specific resources here.

The rest of the homepage contains more links to those pages, as well as VSCPA partners and the latest industry and Society news. The footer contains important website links like our policies, terms and conditions, as well as a support center for the new site.

We hope you’ll find the new site easy and intuitive to use. If you have any questions, please don’t hesitate to contact us at vscpa@vscpa.com or (804) 270-5344. Happy browsing! n

KnowledgeNOW: Igniting Your Spark

Nov. 5–6, 2018 | Hyatt Regency Reston or online

Do you ever feel like your work and daily life have become monotonous or routine? The VSCPA’s KnowledgeNOW Conference is here to alleviate that feeling by helping you ignite your spark.

Through interactive sessions and social learning opportunities with your peers, you’ll walk away feeling energized and informed as you look toward a new year. Highlights:

• Up to 18 CPE credits

• Leadership and personal development sessions

• Updates on professional issues and hot topics

• Mobile app keeping you connected and informed

• Book club and coffee talk on day two of the conference

• Free parking

•

Oct.

BLOCKCHAIN:

THE WHAT AND WHY FOR ACCOUNTANTS

In the past year, the terms “cryptocurrency,” “Bitcoin” and “Ethereum” have earned a spot in our vernacular. It is hard to go a day without seeing a headline referencing the prices of cryptocurrencies and speculating as to their future value. Much of this has to do with the massive boom Bitcoin experienced at the end of 2017, when its price shot upwards of $20,000 per Bitcoin on some exchanges.1 While cryptocurrencies have their proponents and critics, the blockchain technology underlying these virtual currencies has the potential to reshape our economy in the same way the Internet has over the last 25 years.

Blockchain — often thought to be synonymous with Bitcoin, the most popular cryptocurrency — is considered to be the next evolution of the Internet and has been dubbed “Internet 2.0” and the “Internet of value.” But it is important to differentiate the two: Bitcoin is synonymous with an “app” while blockchain is the underlying technology driving the app. Cryptocurrencies are just one way blockchain technology can be leveraged.

So what exactly is this revolutionary technology, what value does it offer beyond cryptocurrencies and how can it transform business functions and industries?

THE BLOCKCHAIN, EXPLAINED

At its core, blockchain is a distributed ledger technology. It is a ledger or database of transactions that is distributed over a computer network, with

each computer participating in the network by maintaining an identical record of all the transactions that have occurred. In order to add a new transaction or group of transactions (a “block”) to the ledger, the network participants must verify the new block using a consensus mechanism. This allows the network participants to “agree on” the updated ledger. Once a block is verified, it is added to the chain of transactions and is linked to the previous block. In effect, all blocks of transactions are chronologically layered and linked to each other, from the very first transaction to the last.

Using this explanation, it is easy to identify a few key characteristics of blockchain technology:

• Distributed/decentralized: The ledger of data is not stored in one location; rather, it is stored on a broad network of computers.

• Immutable: Since each block of transactions is linked to the blocks before it, the network will not accept a change to prior blocks in the chain.

• Transparency with security: The history of transactions is visible to every participant and all transactions are broadcasted to the network. Blockchain uses cryptography along with public and private keys to control who can access certain data.

• Peer-to-peer: Transactions are processed without the presence of a third party. u

Know this...

• Blockchain is a database of transactions that is distributed over a computer network, with each computer participating in the network by maintaining an identical record of all the transactions that have occurred.

• Blockchain offers several advantages, such as being secure because of its transparency and working independently of third parties.

• Both public and private-sector accountants need to be aware about how blockchain could disrupt their industries.

Bennett Dean, CPA

accounting

THE VALUE

These characteristics described above, when combined and working together in one system, give blockchain its unique value. Each characteristic works together to create a tool for distributive consensus, allowing unknown, distrusting participants to transact with one another.

Distributed/decentralized

Since the ledger is stored across a network of computers, there is no need for a central authority to keep a “master file.” The value of having the ledger stored and maintained across a distributed network, though seemingly redundant, is two-fold.

First, there is no central point of failure. With the prevalence of hacking and the importance of having information available at all times, the distributed network can withstand attacks and outages. If any computer on the network fails or is temporarily unavailable, the others continue to verify transactions and build the blockchain.

Second, it prevents a user or group of users from manipulating the system. The data cannot be manipulated by a rogue user because all participants have a copy of the real-time ledger. Any attempt to change the historical data would need to be done across all computers participating in the network.

Immutable

Blockchain creates an immutable transaction history that is permanent and tamper-proof. Again, changing the historical data is nearly impossible since network participants will not accept a blockchain with a transaction history different than their own. Additionally, each block in the chain is mathematically linked to each one that came before it. Once verified, all the blocks in the chain — from the very first to the most recent — are inseparable, and the sequence of historical transactions is shared across all participants in the network. Changing or manipulating prior blocks in the chain proves nearly impossible.

This is extremely valuable when considering an audit of transactions. Using blockchain, auditors can be assured that when any transaction was initially recorded, it was agreed upon and verified by all parties to the transaction. Moreover, auditors can be certain that what was recorded has not changed. As discussed

below, this could represent a significant shift in the work of auditors.

Transparency with security

Blockchain is a transparent history of all transactions. It is transparent in that there is a clear set of rules to which each network participant must adhere. The rules are known and available to all participants and must be followed for a new block to be verified. Not only are the “rules of play” enforced in an unbiased manner (after all, it is a computer algorithm enforcing them), the resulting transactions are visible to all participants, creating an auditable and trusted database.

Blockchain is secure in that it uses asymmetric cryptography to grant specified parties access to data or information. It uses a pair of keys: public keys that can be shared with anyone and private keys that are specific to the owner. It essentially controls who in the network has access to specific data, depending on who has the proper private keys.

Peer-to-peer

Perhaps the most significant aspect of blockchain is it works independent of any trusted third parties. This is where the network consensus provides value. All the facts that are known to one party are also known to the opposite party and to the entire network. In any given transaction, the parties have the exact same set of shared facts and can verify all details of the transaction without anyone else being involved. This creates a trust between unknown participants, without the need for a trusted intermediary.

One can see how this could add value to parties to a transaction. Intermediaries — and the fees associated with their services — are often involved in everyday transactions. Credit-card companies and banks are prime examples.

When these characteristics work together as they do in blockchain technology, it creates a mechanism by which value can be shared and transferred over the Internet. The fact that all parties in the network share the same information allows them to reach a consensus about the current state of the shared facts and how those facts came to be. This in turn creates a trust among disparate parties, without the need for a traditional third-party intermediary. Each party agrees on the shared, immutable, transparent facts.

The blockchain technology underlying cryptocurrency has the potential to reshape our economy in the same way the Internet has over the last 25 years.

SMART CONTRACTS

The term “facts” can refer to any number of data points. In finance or accounting, the shared facts might be the terms of a contract. A contract can be coded into a computer application, and using blockchain protocol, the terms of the contract can be programmed to auto-execute once certain milestones are met or inputs are received. These so-called “smart contracts” represent a valuable advancement in efficient automation. They can automatically execute any data-based business logic. It is similar to “if-then” logic, but the contracts can be programmed to handle complex business processes.

When a contract is, so to speak, built into blockchain, the terms of that contract take on the key characteristics discussed earlier. The terms are immutable — what was initially agreed on between the parties will not change. The terms are accessible and transparent — they can be shared with anyone needing access to them and adherence to the terms can be reviewed and audited automatically. The terms are distributed on a peer-to-peer network — the contract does not require verification by a third party or reliance on a third party to execute.

BLOCKCHAIN IN BUSINESS

As accountants, whether in the public or private sector, understanding how this technology might disrupt various industries, including our own, will be crucial as its adoption spreads. However, before discussing its potential effects on the accounting industry, it is important to note not all blockchains function the same as Bitcoin and the other cryptocurrencies. There are two types of blockchains: public and private. The Bitcoin blockchain is an example of a public, or non-permissioned, blockchain.

Public versus private blockchains

When thinking about public and private blockchains, it can be helpful to compare them to the Internet and a corporate intranet. In this analogy, the Internet represents the public blockchain, and the corporate intranet represents the private blockchain. The Internet is available for all to access whereas a corporate intranet requires certain permissions to access.

The main difference between the two boils down to who owns and can access the network infrastructure. In a public blockchain, anyone is free to join and use the blockchain. It truly is a distributed, decentralized network with no prerequisites needed in order to participate. In a private blockchain, permission to access must be granted by a gatekeeper.

As businesses adopt blockchain technology, many will want to

restrict access and visibility to their transactions and data. In these cases, a private blockchain in which participants are known, trusted and given permission to be in the network will be more suitable. The private blockchains are more centralized than their public counterparts, but they give businesses more control over their networks. Other advantages of a private blockchain that make them a better fit for business include:

• No need for complex consensus mechanisms. In theory, the permissioned blockchain participants are known and trusted, so reaching consensus and verifying transactions is a simpler and less time-consuming process.

• Businesses can customize and design a blockchain to fit their specific needs, including the consensus algorithm and level of encryption.

• Businesses can give third parties (auditors, regulators, etc.) access to specific data information without compromising all the data stored on the blockchain.

Whether working with a public or private blockchain, certain limitations and issues still exist, including:

• Scalability: Does the blockchain allow network participants to verify transactions fast enough to keep up with the speed of business?

• Governance: Who makes decisions for the blockchain when all participants add value to the network?

• Interoperability: To function efficiently, blockchains will eventually need to talk to other blockchains and outside systems. For instance, for the blockchain to auto-execute the terms of a smart contract, it will need to connect to data or inputs stored outside the blockchain. Blockchains will also need to connect to legacy systems to pull historical data.

• Privacy: Customer data and corporate data needs to be protected and shared on a need-to-know basis. Transparency needs to be limited where appropriate.

Blockchain and the accounting industry

With the basic principles of blockchain technology and its capabilities now laid out, what should those in the accounting industry do in the near term and expect in the long term?

In the short term, accountants should continue educating themselves on what the technology is and how it is being implemented in various industries. Much like the adoption of the Internet, the adoption of blockchain will not happen overnight. But once it is in use, accountants will be expected to have u

accounting

EDUCATION SPOTLIGHT

BITCOIN AND CRYPTOCURRENCIES: LEGALITIES OF BOTH

• November 13, 2018

• Location: TBD

• Four-hour live event will also be webcast

Visit vscpa.com/cpe for info.

a thorough understanding of what it is and what it offers. To prepare for this, expect more and more universities to start offering blockchain courses as part of their accounting programs.2 Indeed, the CFA Institute, in recognition of the growth of the technology, has already added cryptocurrency and blockchain topics to its CFA Exam.3

As blockchain gains more acceptance and its adoption spreads, it could shift the focus of auditors and tax practitioners to highervalue consulting services. Many would agree that administrative tasks divert too many resources away from value-added activities. If blockchain technology, particularly smart contracts, can take over these administrative functions (think accounts receivable, accounts payable, account reconciliations), it will free up resources to tackle more pressing needs like strategic planning.

Other traditional accounting services that will be affected, and how they might look in the future, include:

Bookkeeping

One of the common themes when reading about blockchain and accounting is the idea of a ledger that is shared between parties of a transaction (buyer and seller). With blockchain, the recording of transactions will occur in real time during the course of everyday business. As items and/or services are purchased or sold, they will be recorded in a ledger that is shared between the buyer and seller. The recorded entry will be the exact same for both parties, thus eliminating the likelihood of human error on either side. Over time, as the shared ledgers become more robust and can handle all types of transactions, the need for bookkeepers may be greatly reduced or eliminated altogether.

Auditing

One of the most significant services provided by public accounting firms, the audit of a company’s financial statements is necessary so the public can trust the financial information being reported. Each audit can be a very lengthy, costly and time-consuming project. In a blockchain environment, a company’s transactions would be

verified and confirmed as they occur. Not only would auditors be able to verify most financial information automatically just by going to the blockchain, but real-time audits would be possible. Because the costs and time committed to audits would drastically decrease, audit teams would be able to expend additional resources on complex transactions, internal controls and IT audits. The focus of audits could shift from the financial transactions to an audit of the blockchain.

Tax Preparation

Similar to the possible changes in the audit industry, the realtime recording of all financial transactions on a blockchain could completely change the way tax returns are prepared. At any point in time, a company’s taxable income and tax liability could be known. Could we reach a point where real-time tax reporting and payments are not only possible, but required?

The automation of traditional accounting processes will not render CPAs meaningless or jobless. Rather, it will shift the industry’s efforts away from lower-level services and toward higher-level advisory services. Some jobs will be lost, but others will be gained. But be warned: In the blockchain environment, accountants will need to find new ways to bring value to their companies and clients or risk being left behind. As Stephen Horan of the CFA Institute recently said regarding blockchain, “This is not a passing fad.” It is important to start paying attention to the shifting landscape sooner rather than later. n

1. Imbert, Fred. “Warren Buffet on bitcoin: It doesn’t produce anything except more buyers looking to sell.” CNBC. May 7, 2018. cnbc. com/2018/05/07/warren-buffett-on-bitcoin-it-doesnt-produce-any thing.html

2. Paine, James. “How blockchain is disrupting the accounting industry.” Inc. March 30, 2018. inc.com/james-paine/how-blockchain-isdisrupting-accounting-industry.html

3. Patterson, Michael and Andrea Tan. “’This is not a passing fad’: CFA Exam adds crypto, blockchain topics.” Bloomberg. July 16, 2018. bloomberg.com/news/articles/2018-07-16/cfa-exam-adds-cryptoblockchain-topics-as-wall-street-dives-in

Bennett Dean, CPA, is a tax manager at PIASCIK in Glen Allen. He focuses on domestic and international tax consulting and compliance for both individuals and businesses.

bdean@piascik.com connect.vscpa.com/BennettDean (804) 527-1815 piascik.com

health care

TAKING THE PULSE OF THE AFFORDABLE CARE ACT

For many reasons, health care access and affordability is becoming more difficult. There are new ways to make health insurance more affordable for some CPAs and their clients, but real issues plaguing the health care system continue to exist.

The Affordable Care Act (ACA) has been the topic of much debate since it passed in 2010. Repeal attempts have been numerous — 70+ by most counts — and the political dialogue has been unending. Nonetheless, at the writing of this article in July 2018, the ACA for the average business or individual remains relatively unchanged. The fundamental goal of the ACA was to enhance the affordability of, and access to, health care. The method for this objective largely focused on the health insurance markets. Its implementation created winners and losers in the process. In my opinion, many of the ACA reform proposals we have seen recently, reform of health care reform, deal with new issues of affordability and access created by the ACA itself.

The intent of this overview is to make you aware of a few of the responses to what would be viewed by many as negative impacts of the ACA. Again, I agree there are two sides to every issue and there were clearly benefactors of the law. However, for this summary, I will focus on various activities and strategies that have been implemented to address some of the ACA’s unintended consequences.

INSURANCE ACCESS FOR SOLE PRACTITIONERS

Virginia SB 672 expanded the definition of a small group in Virginia to include single member organizations, or those businesses run by a sole practitioner. This bill was a direct result of the large individual health insurance premium increases and limited carrier choices we saw in 2018. Large portions of Virginia have just one carrier choice, and rates in

2018 went up an average of 57 percent based upon carrier filings with the Virginia Bureau of Insurance. Charlottesville was hit particularly hard — according to a recent Kaiser Family Foundation study, it has the highest individual rates in the United States this year.

Individual insurance buyers on the marketplace receive subsidies to help pay their premiums (about 85 percent of individuals historically) and are not impacted by these high rates since the amount they pay is a fixed percentage of their income. However, many CPAs’ and other small business owners’ income levels are too high to receive subsidies and they paid those huge insurance premium increases in 2018. The intent of SB 672 is to provide some relief for this group, either via carrier choice, product selection and/ or rates.

The criteria to be considered for these plans can be somewhat restrictive. The definition of a sole proprietor is an individual who derives a substantial portion of his or her income from a trade or business:

• operated by the individual as a sole proprietor;

• through which the individual has attempted to earn taxable income; and

• for which the individual has filed the appropriate U.S. Internal Revenue Service Form 1040, Schedule C or F, for the previous taxable year.

The law is clear that the organizations can only have one owner. That is, any jointly owned organizations will not qualify. If a solely owned business qualifies, they may receive significant advantages over u

Know this...

• Despite the political dialogue, currently, the Affordable Care Act (ACA) as it affects the average business or individual remains relatively unchanged.

• A new Virginia law, effective July 1, allows sole practictioners to qualify as small businesses under the ACA and obtain health insurance available to small businesses in Virginia — potentially resulting in significant cost savings for sole CPA practitioners.

• The Tax Cuts and Jobs Act removed the individual tax penalty for individuals not having coverage beginning Jan. 1, 2019, which is currently being challenged in court by 20 states.

Brian Marks, CEBS

health care

the available alternatives in the individual market, absent a premium subsidy. I see the key advantages as follows:

Improved carrier choices

By allowing sole practitioners to qualify for insurance afforded to small groups, they will be able to take advantage of the insurance carriers available to small groups — notably that there are usually more options in a given market. In most portions of Virginia, there are at least three carriers available for small groups where there may be just one for individual plans.

Better plan choices

The individual market generally has limited plan options available in comparison to the group market. For example, Virginia’s largest health insurer, Anthem, has 10 individual plans available this year, which is more than some of their competitors. Conversely, they have 55 small group plan options from which to choose. This is further compounded in that they have limited the individual plan options to a smaller area than their full service area. In addition, the individual plans from most carriers typically utilize a more limited network and institute the greatest cost control measures available, such as primary care physician referrals and more restrictive drug formularies. This is not to say these cost controls measures are not acceptable; however, the inability to pay more for flexibility is troublesome. Options are simply not available in many areas.

More competitive pricing

Due to many factors, individual plans are not priced as competitively as small group options. Based upon my personal experience, I have routinely seen individual prices 50 percent or more above comparable group plan options in many instances. In addition, the price increases in the individual plans have been much larger. For 2018, the average individual plan in Virginia increased

57 percent versus 7 percent for small group plans, according to Virginia Bureau of Insurance filings. The initial data for 2019 is similar, but not so dramatic — 19 percent and 8 percent, respectively. In short, currently the small group market has better and more stable pricing than the individual market options.

I anticipate this change to be well received by sole member organizations as a solid alternative to the ACA individual options available. My firm has already had many inquiries about this from sole practitioners who hope to benefit.

SELF-FUNDING FOR SMALL EMPLOYERS

The ACA underwriting changes created winners and losers within the small business community. The compression of age bands to three times from youngest to oldest (it had routinely been six

or more) and the removal of medical underwriting essentially pulled all groups to the mean. Groups with older employees, or with more medical conditions, received rate reductions. Conversely, groups with younger employees, or with few medical conditions, saw large rate increases, sometimes in excess of 100 percent. So how can small businesses mitigate the impact of these changes? Many carriers implemented self-funding approaches to organizations with five or more employees as a response to these changes.

Self-funding in the small employer market is based on the same concepts utilized for larger employers, just somewhat simplified. Self-funding allows a carrier to underwrite medical risk, which is not allowed for small group fully insured plans, and eliminates some of the ACA taxes — most notably the Health Insurer Tax, which adds several percent to a fully insured premium.

By removing a group from the underwriting methodology of the ACA, organizations with younger and/or healthier employee populations can benefit from lower rates. These arrangements are typically fully funded for smaller employers, with a maximum liability exposure built into the funding arrangement. If structured properly, the overall risk of claim exposure can be mitigated. However, these plans need to be evaluated with competent advisory assistance to ensure an organization is properly protected.

Self-funding can also open the possibility of a return of premium for an employer. Most carriers that offer self-funding will return a portion of the estimated claim fund if the group’s experience is favorable. The percentage of savings returned can vary among carriers, and even within options of a carrier. This approach can also benefit employers that wish to be more engaged in cost control and wellness initiatives. Again, small employer selffunding is not a solution for every employer. However, it can offer solid advantages to some employers over the ACA options available.

LEGAL CHALLENGE WILD CARD

The Tax Cut and Jobs Act removed the individual tax penalty for individuals not having coverage beginning Jan. 1, 2019, prompting a lawsuit from 20 state attorneys general (Texas v. United States). This legal action challenges the ACA as being unconstitutional without the tax in place. In its 2012 decision, the U.S. Supreme Court was deemed the tax penalty to be the key reason the ACA had not violated the Commerce Clause. The U.S. Department of Justice (DOJ) currently has elected not to defend the individual mandate and components of the ACA it sees as interrelated (preexisting conditions and community rating). The DOJ believes that without the tax, those elements will be unconstitutional in January

2019. However, the DOJ also stated that removing the penalty would not affect many other components of the law, such as subsidies, marketplaces and Medicaid expansion.

The reintroduction of these risk management components, if it occurs, would throw the ACA and the insurance markets into turmoil in the short term. As of this writing, the real overall impact is indeterminable. The removal of the pre-existing condition language and the rating methodology of the ACA make it near impossible for carriers to effectively price the possible risks going forward in our current ACA world. What remains unclear is the impact of responses to this situation by any governmental branch. One thing is certain, however: The ACA will remain in turmoil for the foreseeable future with little hope of any concrete resolution to its operation.

REAL ISSUES

The ACA was an attempt to aid in the affordability and accessibility of health care in America. I personally believe the fundamental flaw in its approach is that attempted to do so by reforming health insurance, not health care. That is akin to altering the terms of a mortgage with no regard to the value of the underlying home. The real issue is health care system costs, of which the health insurers are only one component of the equation. What we truly see with the ACA today is the underlying issue of unaffordability of health care in our society. I believe we have approached medical care as an unlimited resource and have applied few market forces to its control for many decades.

Health care in America is immense at roughly 18 percent of Gross Domestic Product — and it is increasing rapidly. The net effect is that health care spending continues to crowd out other needs and resources. When asked, I often say explaining health care cost is simple — it is the number of units of care multiplied by the cost of those units. That is, it is no different than any other economic good. The question of how you control the total costs is much more difficult, however, in the emotional realm of health care, where quality and outcomes is incredibly subjective. In my opinion, the ACA has done little to address the real issue of costs, only how we finance it all.

I believe we will not come close to a solution on health care in America without an injection of market forces. We simply have no free market competition in the space. Also, due to a multitude of factors, there is a lack of good information, or incentive, to make cost-effective health care decisions. There is poor, sometimes nonexistent, transparency in health care pricing. I believe we will never impact health care expenditures until we effectively incentivize individuals to access care in the most cost-effective setting. I do believe this is possible if we effectively design u

benefit plans to encourage people to access care from the most cost-effective providers of medical services. Of course, this is much easier said than done. Our system can be fragmented, and it is difficult to determine who or what is the best solution for your health care needs. Most of us evaluate a car purchase with much more effort than a medical procedure. That makes sense when you consider there is better information available on automotive options — and when you factor in that you pay the full cost of the car yourself, while most of us only directly pay a small portion of our health care.

WHAT NEXT?

In the long term, I do hope we will see some connection between cost and quality in our system. Regardless of how it happens, it does need to occur. I believe the government can assist by implementing policies that encourage and reward competition. The ACA has limited the incentive for solutions by removing the ability of those in my industry to have tools to innovate and

deliver cost-effective solutions. Concepts like the medical loss ratio requirements have made it difficult for smaller carriers to survive. Limits on plan designs have made it much more difficult to innovate.

What remains clear is we need to work as an industry to reduce medical costs overall. This can be done by encouraging efficiency from consumers, care providers and insurance companies. I am confident the ultimate solution will be found in competition in a free market, not with more regulations that put real solutions further out of reach. Stay tuned. n

Brian Marks, CEBS, is founder and president of Employee Benefits of Virginia in Glen Allen. He has more than 25 years of experience in employee benefits, 15 of which have been devoted to managing the employee benefits programs of the VSCPA.

bmarks@ebova.com

Attention CPAs:

Whether A Decision Maker Looking To Upgrade Your Talent, Or A CPA Looking to Upgrade Yourself/Your Skills, Ask Yourself:

Who really chose who in joining your company?

Are you/your professional staff really at the right level where you should be/you need them to be?

Are you/your staff in a position that truly suits your/their personality, values, and professional and personal needs?

Why leave your future to chance?

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HOW TO HANDLE NONPROFIT CONTRIBUTIONS

New guidance from the Financial Accounting Standards Board clarifies how nonprofits should differentiate between exchange transactions and contributions.

Melisa Galasso, CPA

In June, the Financial Accounting Standards Board (FASB) issued ASU 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made, which will have a major impact on the financial statements of nonprofit entities. The timing of this ASU was critical considering the impending effective date of Topic 606, Revenue from Contracts with Customers, which creates significant new disclosures requirements regarding exchange transactions.

Topic 606 only applies to revenue from customers. By definition, a customer is engaged in an exchange transaction. Therefore, contributions, a key revenue source for nonprofits, were scoped out of Topic 606. However, certain transactions, including grants and other contracts, have been a source of confusion in the industry. It is not acceptable that three nonprofits could theoretically receive the same grant and could literally have three different accounting treatments for that grant. One may treat it as an exchange transaction and another as a contribution, while the third may bifurcate the transaction.

As a result of this confusion, FASB needed to address the classification of exchange and non-exchange transactions before nonprofits had to adopt Topic 606. Ultimately, FASB not only tackled that issue, but also addressed a longstanding problem with a lack of guidance around conditions. As a result, ASU 2018-08 will have a major impact on nonprofits.

EXCHANGE VERSUS NON-EXCHANGE TRANSACTIONS

Distinguishing between an exchange transaction (where each party receives commensurate value) and a contribution (a non-exchange transaction) may seem like a simple task. In practice, however, this distinction was not always obvious, and accounting for grants is a prime example of how diversity in practice has muddied the waters. Some believe that governmental entities do not make contributions and therefore treat all government grants as exchange transactions. Others believe that the public good is equivalent with the governmental entity, therefore a grant that benefits the public should be treated as an exchange transaction.

Prior guidance indicated, “In a contribution transaction, the value, if any, returned to the resource provider is incidental to potential public benefits. In an exchange transaction, the potential public benefits are secondary to the potential proprietary benefits to the resource provider.” However, this was perceived by many to be insufficient guidance. ASU 2018-08 makes fundamental changes by clarifying that “In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value.”

This clearly shows that public benefit would not lead to an exchange transaction. In addition, the standard also indicates that “the type of resource u

Know this...

• In June, the Financial Accounting Standards Board (FASB) issued ASU 2018-08, Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made, which will have a major impact on the financial statements of nonprofit entities.

• Nonprofits were accounting for grants in different ways (exchange or non-exchange transactions) due to insufficient guidance from FASB.

• The new guidance means that more grants and contracts will be treated as contributions, so FASB also addressed a gap in contribution guidance related to conditions.

provider shall not factor into the determination,” which now clearly puts governmental grants on the same footing as grants from foundations and corporations.

ASU 2018-08 supersedes the prior guidance, Indicators Useful in Distinguishing Contributions from Exchange Transactions (958605-55-8). In its place, FASB continues to address topics like expressed intent, discretion in determining amount and potential penalties. However, FASB also explicitly states that the resource provider (grantor) is NOT synonymous with the general public, as well as that the execution of the grantor’s (resource provider’s) mission or positive sentiment is NOT commensurate value. The effect of this language is intended to end existing diversity in practice. Ultimately, it is expected to also take many transactions that are today treated as exchange transactions and move them to the contribution guidance, which will reduce the number of items that are subject to the new Topic 606 disclosures.

FASB addresses the scope of the contribution standard by specifically excluding third-party payer scenarios, agency transactions and tax abatements. Transfers of assets from government entities to business entities are also not subject to contribution accounting. FASB does have a separate disclosure project that will address governmental assistance to for-profits.

Finally, ASU 2018-08 includes several examples of discerning commensurate value in the implementation guidance. These examples expand greatly on prior guidance to assist entities in making the determination.

CONDITIONS VERSUS RESTRICTIONS

Now that more grants and contracts will be treated as contributions, FASB took the opportunity to address a gap in contribution guidance related to conditions. Many people misunderstood the difference between a condition and a restriction and the use of probability analysis often led people to not recognize conditions.

The old definition of a donor-imposed condition was “A donor stipulation that specifies a future and uncertain event whose occurrence or failure to occur gives the promisor a right of return of the assets it has transferred or releases the promisor from its obligation to transfer its assets.” ASU 2018-08 updates the definition to require two items: a right of return and a barrier. It removes the concept of a future uncertain event.

The ASU provides significant new guidance on determining a condition. It includes three indicators that would suggest that a contribution contains a barrier. The original exposure draft contained four, but FASB ultimately settled on three, while

also clarifying certain terminology based on comment letter suggestions. In the final ASU, no single indicator is determinative and some indicators may be more important than others in certain circumstances. As a result, an entity would have to review the facts and circumstances carefully in each agreement. FASB also removes probability analysis, indicating that even if it was probable that a condition would be met, that would not impact the classification.

The first indicator is the existence of a “Measurable PerformanceRelated Barrier or Other Measurable Barrier.” If a contribution requires the nonprofit to achieve a certain level of service or a particular unit of output, that would indicate a condition. For example, if a grant says a specific number of people need to be assisted on a monthly or weekly basis, or a certain level of achievement is required (on a standardized test, for example), that would indicate a barrier. Let’s take a look at an example that would result in a change in treatment under ASU 2018-08. If a grant indicates the nonprofit must assist 100 people per week when historically the entity supported 1,000 people per week, the contribution would still be deemed conditional, as probability assessments are no longer permitted. Under prior guidance, if the possibility of not achieving the condition was remote, then it would not have been treated as conditional. Matching grants are another example of a measurable barrier. Conditions impact the timing of contribution accounting as the contribution revenue cannot be recognized until the condition has been met — thus creating timing differences when nonprofits are recognizing contribution revenue under the new standard.

The second indicator is “Limited Discretion by the Recipient on the Conduct of an Activity.” If a contribution indicated that a specific protocol must be followed or included specific guidelines regarding qualifying expenses, this would be an indicator of a barrier. The term “limited discretion” refers to the methods used to conduct the activity, which is different than a restriction, which limits the timing or purpose for which the funds can be used. Grants that are subject to U.S. Office of Management and Budget guidance on allowable costs are great examples of limited discretion.

The final indicator of a barrier is that the stipulation must be “Related to the Purpose of the Agreement.” Therefore, stipulations that are trivial or administrative would not require conditional treatment. In the past, for example, the requirement to provide an annual report would be looked at from a probability analysis. Under the new standard, probability assessments are no longer applicable. However, since the annual report is not related to the purpose of the agreement and instead informative, such a stipulation would not be indicative of a barrier and therefore not result in conditional treatment.

One of the more eye-catching lines in the standard related to these barriers is a statement that “In cases of ambiguous donor stipulations, a contribution containing stipulations that are not clearly unconditional shall be presumed to be a conditional contribution.” Obviously, this can lead to more contributions being deemed conditional. However, the standard does indicate that if there are no barriers and only a right of return then the contribution is unconditional. The implementation guidance again was augmented to include many more examples distinguishing a conditional stipulation from one that would not create a condition.

EFFECTIVE DATE

For entities that are resource recipients (grantees), the effective date is critical. Topic 606 differentiates between those nonprofits that are conduit bond obligors and those that are not. Therefore, Topic 606 was technically effective Jan. 1, 2018, for nonprofits with a calendar year-end that had conduit debt. As this standard

was not issued until June, FASB was forced to be creative in its effective date. Therefore, public business entities or nonprofits that have issued, or are a conduit bond obligor for, securities that are traded, listed or quoted on an exchange or an over-thecounter (OTC) market will implement ASU 2018-08 for annual periods beginning after June 15, 2018, including interim periods within those annual periods. HOWEVER, this means that if a grant is currently treated as an exchange transaction, the entity would adopt Topic 606 and its related disclosures. Then when the nonprofit adopts this standard, if the grant is now treated as a contribution, the entity would have to undo all their prior disclosure efforts. Nonprofits with conduit debt should be thoughtful as to their date of adoption.

For all other entities, ASU 2018-08 is effective for annual periods beginning after Dec. 15, 2018, and interim periods within annual periods beginning after Dec. 15, 2019. This will align with Topic 606’s adoption date.

FASB also gave unique effective dates for resource providers (grantors). For public business entities or nonprofits that have issued, or are a conduit bond obligor for, securities that are traded, listed or quoted on an exchange or an OTC market that provide grants, ASU 2018-08 is effective for annual periods beginning after Dec. 15, 2018, including interim periods within those annual periods. All other entities will implement for annual periods beginning after Dec. 15, 2019, and interim periods within annual periods beginning after Dec. 15, 2020. The standard applies a modified retrospective approach, with a full retrospective approach permitted if desired. n

Melisa Galasso, CPA, is the founder of Galasso Learning Solutions LLC in Charlotte, N.C., where she designs and facilitates courses in advanced technical accounting and auditing topics, including nonprofit and governmental accounting. She is a member of the VSCPA Board of Directors and sits on the Disclosures Editorial Task Force.

melisa@galassolearningsolutions.com connect.vscpa.com/MelisaGalasso galassolearningsolutions.com

@GalassoLearning

VSCPA members are top Virginia CFOs

Virginia Business magazine held its 13th annual Virginia CFO Awards on June 20 at the Jefferson Hotel in Richmond, and two VSCPA members were among the winners.

Michel Bilè, CPA (above left), CFO at the Hampton Roads Community Health Center in Portsmouth (HRCHC), was the winner in the Large Nonprofit Organization category. Bilè joined the HRCHC as a consultant when the organization did not have a controller weeks before the end of its fiscal year, then was hired as the CFO after pulling off the year-end close. He took the organization from a deficit of nearly $500,000 to running surpluses in each of the past three years.

Glenn Nunziata, CFO at Smithfield Foods in Smithfield, was the winner in the Publicly Traded Company category. Nunziata worked closely with the Smithfield CEO to develop a comprehensive strategy that led to four years of record growth, driven by operational efficiencies, earning improvement and strategic acquisitions.

Nine VSCPA members were among the 47 nominees, with three other members selected as finalists: JulieAnne Brown, CPA, CFO of Farmington Country Club in Charlottesville, and Virginia Secretary of Finance Aubrey Layne, CPA, in the Large Nonprofit Organization category, and Mirriam Oman, CPA, CFO of GoochlandCares in Goochland, in the Small Nonprofit Organization category.

The VSCPA is a founding sponsor of the event, and VSCPA Board of Directors Chair-Elect Gary Thomson, CPA, regional managing partner at Dixon Hughes Goodman in Richmond, presented the awards.

BYLAWS PROPOSAL

Last issue, we reported on the VSCPA’s proposed bylaws changes aimed at helping the Society better respond to the rapidly changing needs of the CPA profession. In May, members in attendance at the annual meeting voted to send the proposal to a member vote, and in June, VSCPA members elected to adopt the changes.

The VSCPA sent ballots to all members via email or through mail, and 84 percent of ballots received were in favor of the changes.

Read a summary of the changes at vscpa.com/ Bylaws

OPEN VOLUNTEER POSITIONS

Thanks to all the VSCPA members who have already signed up to volunteer! Visit the Volunteer Manager on Connect to see the full list of current opportunities at vscpa.com/volunteer.

• VSCPA Board of Directors

• VSCPA Educational Foundation Board of Directors

• VSCPA PAC Board of Trustees

• Young Professionals Advisory Council

• Ask a CPA Email Program

Members among most powerful women in accounting honorees

DO YOU FEEL EMPOWERED TO INNOVATE OR THINK OUTSIDE THE BOX?

The American Institute of CPAs (AICPA) recently partnered with CPA Practice Advisor to present the 2018 Most Powerful Women in Accounting awards, honoring women who are making an outstanding impact on the profession and small practitioners in particular. The winners were announced Wednesday at a special ceremony at the AICPA ENGAGE Conference in Las Vegas.

Two VSCPA members were among the 25 winners:

Lynne Doughtie, CPA, of Powhatan, U.S. chairman and CEO, KPMG, New York (pictured left)

Julie Gustavsson, CPA.CITP, partner and chief operating officer, Keiter, Glen Allen (pictured right)

Nominate a CPA

Award nominations for the VSCPA Distinguished CPA Awards open Monday, Oct. 1, at VSCPA.com/Awards. The nomination deadline is Friday, Dec. 7. For more information contact VSCPA Student & Engagement Specialist Lauren Simonetti at lsimonetti@vscpa.com.

We hope you answered yes…but if you didn’t, we have something big and exciting in store for you this fall. We can’t share the details just yet (sorry!) but we can say:

Save the date — Oct. 24, 2018!

Leading up to our big launch, we’ll be sharing even more sneak peeks, videos and fun giveaways! Don’t delete our emails, because you won’t want to miss what we’re planning for you!

FIND THE CPE TEST ONLINE

Visit vscpa.com/CPE Choose “On Demand” from the side filters to find the exam and others from previous Disclosures issues.

Congratulations to the following members!

APPOINTMENTS & AWARDS

Monica Modi Dalwadi, CPA, partner at Baker Tilly Virchow Krause in Tysons, was presented with the National Kidney Foundation All-Star Award in recognition of her work for the organization.

Samantha Doe, CPA, a supervisor at KWC in Alexandria, and Aaron Peters, CPA, owner of Peters & Associates in Falls Church, have been selected to attend the 2018 American Institute of CPAs (AICPA) Leadership Academy.

Monica Modi Dalwadi, CPA; Nick Goodman, CPA; Jenna Manster, CPA

NEW HIRES

Keith Haas, CPA, was named chief financial officer at BridgeStreet in Reston.

Alex Saidii was named vice president and commercial lending team leader at the Bank of Clarke County in Berryville.

PROMOTIONS

Jennie Barrett, CPA, has been promoted to vice president of accounting and finance at Community Electric Cooperative in Windsor.

Mitchell Wiggins has promoted David Ritz, CPA, to supervisor and Jordan Clary, Ryan Edwards, CPA, and Cody Johnson, CPA, to senior accountant in the firm’s Petersburg office and Matthew Rocawich, CPA, to supervisor in its Richmond office.

Marco Fernandes, CPA, has been promoted to partner at Halt, Buzas & Powell in Alexandria.

Kevin Fly, CPA, was named senior executive vice president and chief accounting officer at TowneBank in Suffolk.

Nick Goodman, CPA, has been promoted to partner at Baker Tilly Virchow Krause in Vienna.

KWC in Alexandria has promoted Jenna Manster, CPA, to principal and Leo Daniels, CPA, and Walter Smith, CPA, to senior accountant.

Jones, Madden & Council in Virginia Beach has promoted Evie Piggott, CPA, and Laura Turner, CPA, to partner.

Pete Ryan, CPA, principal at Ryan & Wetmore in Bethesda, Md., was named Real Estate & Construction CPAs Member of the Year by the Rainmaker Companies.

Alan Witt, CPA, CEO of PBMares in Newport News, was named to the Peninsula Community Foundation Board of Directors.

PHILANTHROPY

Dixon Hughes Goodman held its annual “Count the Cans” food drive, aimed at reducing hunger in the firm’s local communities. Over the 10-day campaign, staff members raised more than $76,000 for hunger relief organizations and volunteered nearly 1,000 service hours at local food banks.

FIRM NEWS

Brown, Edwards & Co. has relocated its Harrisonburg office to 1909 Financial Drive.

The following firms were named to Accounting Today’s “Best Accounting Firms to Work for” list: Gelman, Rosenberg & Freedman, Bethesda, Md.; Homes, Lowry, Horn & Johnson, Fairfax; Kearney & Co., Alexandria; Keiter, Glen Allen; Santos, Postal & Co., Rockville, Md.; SC&H Group Inc., Tysons; and Yount, Hyde & Barbour, Winchester.

Thompson Greenspon in Fairfax was named to The Washington Post’s 2018 Top Workplaces for the fifth year in a row.

News to share? Email disclosures@vscpa.com

STAFF NEWS

ANNIVERSARIES

Sept 22: Membership Services & Peer Review Coordinator Jane Hayes, 15 years, and Online Learning Specialist Kathy Suddarth, 4 years

Oct 2: Public Affairs & Communications Director David Bass, 6 years

Oct. 11: Finance Assistant Ben Munford, 2 years

Oct. 29: Membership Development Director Julia Henderson, 5 years

Top: David Bass, Jane Hayes. Middle: Julia Henderson, Ben Munford. Bottom: Kathy Suddarth.

We mourn the loss of...

Ted Magnusdal, CPA, a VSCPA Life member from Richmond. He was a U.S. Army veteran and a graduate of Virginia Tech.

Oscar Shelton, CPA, a VSCPA Life member from Richmond. A graduate of the University of Richmond, he ran his own firm for more than 40 years.

Ron Shuey, CPA, a VSCPA Life member from Crozet. A graduate of Virginia Tech, he worked for Arthur Andersen in Washington and Sally, Weissinger & Co. in Charlottesville before starting his own firm.

Thomas Strait, CPA, of Landsdowne.

CONGRATS TO THE VSCPA’S NEWEST VIRGINIA CPA LICENSEES

Carlos Ahumada, CPA, Fairfax Eric Anderson, CPA, Charlottesville Nathanael Arbour, CPA, Richmond Andrew Askew, CPA, Arlington Shari Blakey, CPA, Woodbridge Robert Bohnke, CPA, Charlottesville Kimi Butler, CPA, Richmond Susan Creamer, CPA, Virginia Beach Karen Crosswhite, CPA, Leesburg Claudia DiCaro, CPA, Ashburn Karalynn Drechsel, CPA, Suffolk Joseph Eleff, CPA, Washington Zachary Felder, CPA, Glen Allen John Fogarty, CPA, Williamsburg Rex Foster IV, CPA, Washington Elden Gauthier, CPA, Richmond Lea Gray, CPA, Richmond Tamara Greear, CPA, Norton Chad Gunter, CPA, Lynchburg Yuting Han, CPA, Montpelier Adam Harrington, CPA, Arlington Glenda Hassan, CPA, Falls Church Nathan Holaday, CPA, McLean Tyler Howell, CPA, Richmond

Gabrielle Hustead, CPA, Norfolk Evert Jenezon, CPA, Arlington Theresa LaRose, CPA, Centreville Jessica Lewis, CPA, Tysons Michael Marshall, CPA, Chantilly Jasmine Matthews, CPA, Norfolk Glenn Miller, CPA, Verona, Wisc. Christopher Murray, CPA, Tysons Christina Newman, CPA, Arlington Michael Pilot II, CPA, Richmond Brian Ratchford, CPA, Arlington Kristina Romualdo, CPA, Virginia Beach Daniel Sendi, CPA, Alexandria Natalie Sousa, CPA, North Chesterfield Zachary Spurlock, CPA, Chester Rachael Stander, CPA, Arlington Eric Stulginsky, CPA, Herndon Fernando Terrazas, CPA, Woodbridge Naomi Warner, CPA, Fairfax Tyler Wood, CPA, Glenwood, Md.

List from May and June. Compiled Aug. 3, 2018.

WHAT IS YOUR CPA FIRM WORTH?

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ACCOUNTING PRACTICE SALES IS THE largest marketer of CPA firms in the US. The reason? Proven success! Contact us for a confidential, no-obligation discussion or to receive a free valuation. 888-847-1040 Chase@APS.net

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REACH OUT TO READERS

Classified ads are a great way to reach VSCPA members What are you waiting for? Contact us at classifieds@vscpa.com or visit vscpa.com/Classifieds for rate information. Members receive a discount.

Looking for a change of scenery?

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