September/October 2016 - Florida CPA Today | Volume 32, Number 5

florida C P A

TODAY

SEPTEMBER/OCTOBER 2016

VOLUME 32, NUMBER 5

A P U B L I C AT I O N O F T H E F LO R I DA I N S T I T U T E O F C E R T I F I E D P U B L I C A C C O U N TA N T S

cover story

features 8

Independence and the Florida CPA Responsibilities for accountants and auditors

18

Florida Supreme Court Rules Origin-based Sales Tax on Flowers is Constitutional

8

12 Attracting New Business

Gain a competitive edge in an increasingly commoditized field

26

departments 5 Chair’s message 7 President’s message 26 Take Five

Meet Karen Vergara, CPA

28 30 32 34 38 FLORIDA CPA TODAY

CPAs in the spotlight Staff reports News briefs Marketplace DOR update www.ficpa.org

3

F L O R I D A

PRESIDENT/CEO Deborah L. Curry, CPA, CGMA DIRECTOR OF COMMUNICATIONS & STRATEGIC MARKETING Todd Schimpf EDITOR Suellen D. Wilkins GRAPHIC DESIGNER Loleta K. Bolden EDITORIAL COMMITTEE Lynda M. Dennis, CPA, chair Ryan A. Myers, CPA, vice chair Keith C. Blackman, CPA • Walter C. Copeland, CPA Douglas E. Day, CPA • David J. Hochsprung, CPA Michael S. Kridel, CPA • Troy Y. Manning, CPA William C. Quilliam, CPA All articles submitted to Florida CPA Today are subject to technical review, Editorial Committee review, space availability and editing requirements and restrictions. Please contact the editor before submitting unsolicited manuscripts.

Florida CPA Today publishes letters to the editor in its Members’ Forum. For information about the guidelines, visit www.ficpa.org/letterstoeditor.

Statements expressed herein are those of the identified authors and not necessarily those of the Florida Institute of Certified Public Accountants, Inc., nor should statements be considered endorsements of products, procedures or otherwise.

The FICPA reserves the right to reject any editorial material or paid advertising that does not meet Florida CPA Today criteria or detracts from its ethical and professional standards.

Florida CPA Today is published bimonthly by the Florida Institute of Certified Public Accountants, Inc., P.O. Box 5437, Tallahassee, FL 32314. Telephone: (850) 224-2727 or (800) 342-3197. (Street address: 325 West College Ave., Tallahassee, FL 32301.) Visit our website at www.ficpa.org.

This magazine is provided to members of the FICPA. No specific amount of your dues, either expressed or implied, is for this publication. This magazine is not available for purchase by either FICPA members or nonmembers.

For display advertising information, contact the FICPA Marketing Department at (850) 224-2727, Ext. 270. © 2016 by the Florida Institute of Certified Public Accountants, Inc. All rights reserved. Reproduction in whole or part is prohibited without the express written consent of the FICPA.

4

SEPTEMBER/OCTOBER 2016

chair’s

CPA Pipeline, PAC Are Cornerstones of Profession G

reetings, FICPA members!

The Olympics are long gone as summer is ending. The kids are back in school and the general elections are drawing near (but not near enough, if you ask me).

I’m honored and excited to have this opportunity to serve you.

My initial message isn’t really a message – it’s two “asks.” Please join me in supporting two of our profession’s cornerstones and its future: accounting students and the Florida CPA/PAC.

Ask No. 1: Support Florida students The CPA pipeline begins with accounting students.

According to the AICPA’s 2015 Trends report, the delta between the number of accounting degrees awarded nationwide (more than 85,000) and the number of new CPA examinees nationwide (less than 45,000) has never been larger. At the same time, employer demand for public accounting recruits is high, as is enrollment in accounting programs.

In response, the FICPA is committing significant resources to engaging and supporting accounting students along their educational journey and decision to become CPAs. In August, the FICPA had more than 2,900 student members and that number grows daily. Here’s ask No. 1: Choose at least one of these actions and help inspire Florida accounting students to become CPAs. •• Give to the FICPA Educational Foundation, helping fund scholarships •• Be a student mentor or an FICPA studentprogram sponsor through the Accounting Scholars Leadership Symposium at the Mega CPE Conference, and/or the Student Track at the Accounting and Business Show •• Be a speaker or provide a firm/corporate visit for FICPA student ambassadors at participating FLORIDA CPA TODAY

MESSAGE

Joey Epstein, CPA

universities. Campus clubs and organizations are always looking for opportunities to learn more about us.

•• Work with your FICPA chapter to provide local student outreach, such as hosting a student program or engagement opportunity.

Ask No. 2: Support the Florida CPA/PAC As many of you have heard me say, I’m an advocacy guy. I’ve been a member of the various Florida CPA/ PAC Boards of Directors for over 20 years. I can tell you firsthand that the work being done to ensure that the best candidates are elected to represent our profession and the state truly is thoughtful and extensive.

This election cycle we’ve interviewed more than half of the 425 candidates running for state office. Did you know four CPA legislators are running for re-election and another CPA candidate is running for the first time?

As a profession that exists under Florida law, having the right leaders – leaders who understand CPAs – must be a priority for all FICPA members. Currently, less than 6 percent of our members invest in the efforts of the Florida CPA/PAC. Ask No. 2 is that you help me increase that number, and fast. Please show your commitment to our profession with a minimum $25 PAC contribution by December.

In return for your personal investment in accounting students and the Florida CPA/PAC, you’re helping elect candidates who “get us,” and growing the allimportant supply of future CPAs. Thank you! FCT For more information about student initiatives, contact Student Initiatives Manager Jennifer Allen at allenj@ ficpa.org. For information about the Florida CPA/PAC, contact Governmental Affairs Director Justin Thames at thamesj@ficpa.org. www.ficpa.org

5

6

SEPTEMBER/OCTOBER 2016

president’s

MESSAGE

FICPA Committees, COLC Strategize for New Year Deborah L. Curry, CPA, CGMA

I

n July, committee members and incoming

officers from the FICPA’s 27 chapters gathered in Tampa for our annual Committee Days meeting and Chapter Officers’ Leadership Conference.

Committee members discussed tactics for meeting their objectives, and new officers learned details about fulfilling their duties, during the 2016-2017 Fiscal Year. In addition to regional and officer breakouts, I presented an update on the FICPA strategic plan and significant issues on the horizon.

Considerable attention was given to the recommendations of the Chapter Model Task Force. The task force was charged with evaluating chapter funding to determine if the current funding structure benefits the entire FICPA membership.

The task force also looked at the possibility of using the funding differently to increase member engagement.

Chapter Operations Committee Chair Michael Stone outlined the proposed funding plan based on the task force’s recommendations, including logistical and operational details, and the expected timeline for implementation. The plan, which is driven by a performance-based budget, allocates funds to chapters based on programming, activities and engagements, rather than the number of members in their areas. The officers discussed pros and cons of the funding model in roundtable groups, and the interaction provided valuable information as we move forward.

Chapter officers also were invited to attend the FICPA Council meeting. Council members and chapter officers have a valuable role in recruiting and retaining FICPA members, and are key to sharing the value of the FICPA with CPA colleagues. The leadership met in strategy sessions to gather insight, ideas, concepts and unique perspectives that will prepare them for their role in membership outreach and engagement. We asked the groups: FLORIDA CPA TODAY

• As council members or chapter officers, what impact can you have on member outreach?

• What are value propositions to Florida CPAs who are not members?

• How can we improve CPE programming and other activities to engage members, wherever they are?

The collaboration was beneficial, with members from different perspectives covering all areas of the state addressing the future of the FICPA. We’ve shared results from many of the sessions with the Membership Committee, which will use the leaders’ input to develop guidelines for leadership outreach that leads to success.

New this year, to add a little fun to the mix, our YCPA Committee hosted Trivia Night for those who attended Committee Days. Questions were related to sports, current events, music and history. Our member volunteers enjoyed the extra opportunity to get to know each other, laughing together and sharing some down time. Winning team members were Erin Koski, Mona Jackson, Abby Dupree, Brad Gould and Gary Fracassi. The event was a huge success and we look forward to holding it next year.

We invite you, as our members, to share the reasons you’re a member with those who have not yet joined. The most valuable recommendation we can receive is the one you share. FCT

Trivia Night winning team members were (left to right) Erin Koski, Mona Jackson, Abby Dupree, Brad Gould and Gary Fracassi. www.ficpa.org

7

Independence and the Florida CPA Responsibilities for accountants and auditors

By Lynda M. Dennis, CPA, Ph.D

C

PAs licensed in Florida are subject to numerous state laws and rules as well as professional standards of the AICPA, the Government Accountability Office (GAO), the Public Company Accounting Oversight Board (PCAOB) and others.

Among these regulators and standard setters, there are consistencies and inconsistencies in the standards. Florida CPAs who are AICPA members also are required to follow the AICPA Code of Professional Conduct (AICPA Code).

This article summarizes the various requirements of these organizations as they relate to Florida CPAs practicing public accountancy.1

Florida Statutes (F.S.) Chapter 473.302 (8), defines “practice of,” “practicing public accountancy” or “public accounting” as offering to perform, or performing, for the public one or more types of various services.2 The delineated services involve a number of assurance and attestation services (473.302 (8)(a)) as well as other types of accounting, tax, advisory and consulting services (473.302 (8)(b)). Unique to Florida CPAs are the requirements found in Chapter 473.302 (8)(c) identifying the preparation of financial statements (that are not the subject of an audit or attestation engagement) as practicing public accountancy (see discussion of “assembled” financial statements).

Auditors of financial statements must3 be independent with respect to the audited entity when performing audits under Generally Accepted Auditing Standards (GAAS)4 and Generally Accepted Government Auditing Standards (GAGAS). FS Chapter 473.315 also prohibits a Florida CPA from opining on an entity’s financial statements when they, or their firm, are not independent with respect to that entity.

Statement on Standards for Accounting and Review Services (SSARS) No. 21, Statements on Standards 8

SEPTEMBER/OCTOBER 2016

for Accounting and Review Services: Clarification and Recodification, requires accountants engaged to perform a compilation or review to determine if they are independent of the entity for which they are engaged to provide such services. In a compilation engagement, the auditor is required under the AICPA Code to modify the compilation report when he or she is not independent of the entity whose financial statements are the subject of the compilation engagement. However, in a review the accountant must be independent of the entity whose financial statements are the subject of the review engagement. There is no requirement under SSARS No. 21 for the accountant (in public practice) who is engaged to prepare financial statements to be independent because such an engagement is not an attest service.

No assurance is provided by the accountant in an engagement to prepare financial statements or a compilation engagement. Therefore, the accountant is not required to verify the accuracy or completeness of the information provided by management. Nor is the accountant thus engaged required to otherwise gather evidence to express an opinion or conclusion on the financial statements or to otherwise report on them. In a review engagement, however, the accountant provides limited assurance that no material modifications need be made to the financial statements to be presented in accordance with the applicable financial reporting framework. The accountant obtains evidence to support this limited level of assurance primarily through inquiries and the performance of analytical procedures.

“Assembled financial statements” are unique to Florida and defined in F.S. Chapter 61H1-20.0051 as financial statements that are the result of manual or electronic processing services. Assembling financial statements

includes preparing a working trial balance; assisting in adjusting the books; and consulting on accounting matters.

These responsibilities are more proscriptive than those required by SSARS No. 21 in compilation engagements or engagements to prepare financial statements. Florida CPAs may perform services involving assembled financial statements providing they comply with the related standards delineated in F.S. 61H1-20.0053.

GAGAS and the AICPA Code require the auditor to evaluate the effect of providing non-attest/non-audit5 services on their independence individually and in the aggregate. Financial statement preparation, cash-toaccrual conversions and reconciliations are identified in GAGAS and the AICPA Code as non-audit/non-attest services that are outside the scope of an audit or attestation engagement, respectively. However, under GAGAS and the AICPA Code, financial statement preparation, cash-to-accrual conversions and reconciliations will not impair the CPA’s independence if certain requirements6 are met. Under GAAS and GAGAS, the auditor is required to document any significant threats to independence; the safeguards applied; and if the

FLORIDA CPA TODAY

safeguards applied eliminate the threat or reduce it to an acceptable level. When performing assurance and attest services for small and medium-sized entities having few or no experienced accounting staff, CPAs often provide any or all of these, as well as other, non-audit/ non-attest services. Whether or not these services impair independence is a matter of professional judgment.

The AICPA Code identifies these examples of non-attest services that would impair the auditor’s independence: •• Determining or changing journal entries; any account coding/classification of transactions; or any other accounting records without first obtaining the attest client’s approval •• Preparing source documents or changing source documents without first obtaining the attest client’s approval GAGAS identify these and other non-audit services as services that would impair the auditor’s independence.

Other non-audit/non-attest services provided to attest clients include bookkeeping, payroll and other disbursement services. ➡

www.ficpa.org

9

There are a number of laws and regulations with which Florida CPAs are required to comply, and these may differ from those delineated in professional standards and the AICPA Code.

10 SEPTEMBER/OCTOBER 2016

Florida CPAs are required to be competent and exercise due professional care in all cases where they are practicing public accountancy. F.S. Chapter 61H1-22.001 requires CPAs only to undertake engagements they or their firm can reasonably expect to complete with professional competence. Additionally, F.S. Chapter 61H1-22.001 requires Florida CPAs to exercise due professional care when performing all engagements. Under GAGAS, auditors must be competent and must exercise due professional care when performing audit or attestation engagements. On the other hand, GAAS discuss competence and due professional care in the Preface to the Codification of Statements on Auditing Standards, Principles Underlying an Audit Conducted in Accordance with Generally Accepted Auditing Standard, as part of the principles underlying an audit.

Both GAAS and GAGAS require auditors to obtain sufficient appropriate evidence to support their opinions or conclusions relative to the subject matter of the engagement. However, F.S. Chapter 61H1-22.001 requires the Florida CPA to obtain sufficient relevant data to afford a reasonable basis for conclusions or recommendations in relation to the engagement in which the CPA is practicing public accountancy. This is a much broader standard as it includes all engagements, not only those involving audit or attest services.

Florida CPAs are subject to various laws, regulations and professional standards. In some cases, there may be differences between laws, regulations and professional standards as well as the AICPA Code. When providing audit and attest services, Florida CPAs’ professional responsibilities can be found in GAAS, GAGAS and the AICPA Code. However, there are a

number of laws and regulations with which Florida CPAs are required to comply, and these may differ from those delineated in professional standards and the AICPA Code.

auditor for local and Big 4 firms with an emphasis in the insurance, government and not-for-profit sectors.

It is the responsibility of every Florida CPA to be familiar not only with GAAS, GAGAS, SSARS and the AICPA Code, but with the Florida laws and rules that affect them. When trying to balance these requirements and professional standards, Florida CPAs need to remember that an active Florida license is needed to practice public accountancy in Florida, and adherence to Florida’s laws and rules governing the practice of public accountancy is critical. FCT

1

Lynda Dennis is a certified government finance officer and a full-time lecturer in the Kenneth Dixon School of Accounting at the University of Central Florida. She also is a contract CPE discussion leader and course developer in the areas of accounting and reporting for governmental and notfor-profit organizations. Dennis has served in a financial capacity, including as chief financial officer, in governmental and not-for-profit organizations. She also has worked as an

FLORIDA CPA TODAY

Endnotes A discussion of standards and requirements of the Public Company Accounting Oversight Board is outside the scope of this article.

2 The terms “practice of,” “practicing public accountancy” or “public accounting” are considered synonymous for purposes of this article.

3 As used in this article, “must” is a mandatory requirement as defined in the standards of the American Institute of Certified Public Accountants (AICPA) and the Government Accountability Office (GAO). Florida Statutes use “shall” or “shall not” to indicate mandatory requirements.

4 AU-C section 200.15 provides exceptions to this requirement when the auditor is required by law/regulation to accept the engagement and report on the financial statements. In addition, the auditor is not required to be independent if generally accepted auditing standards provide otherwise.

5 The AICPA uses the term “non-attest services” while the GAO uses the term “non-audit.” While the concept is similar, the auditor’s responsibilities with respect to non-attest services differ from those required when the auditor provides non-audit services.

6 This article discusses only a few of these requirements. See interpretations of the Non-attest Services subtopic of the AICPA Code for a complete discussion of these requirements.

www.ficpa.org

11

COVER

story

Attracting New Business Gain a competitive edge in an increasingly commoditized field

By Gustavo Perez, ASA/IA

O

ne of the many challenges accountants face is public perception that accounting is a highly commoditized industry. Although many consider their accountant a trusted advisor, traditional accounting services such as tax-return preparation and assurance services are perceived as standardized, not value added. Although those in the accounting profession may disagree with that view, clients’ perception ultimately affects accountants’ fees. As a result, it can be hard for accounting firms – especially those of similar sizes – to differentiate themselves in the marketplace.

How can firms adapt? By expanding their knowledge and specializing.

A critical way to differentiate your firm from the rest is to be known in the marketplace as an expert in a specific industry or service line. Firms perceived as leaders in a particular area of expertise benefit from returning and more profitable clients through expanded service availability and greater client reliance on the firm.

However, firms face the challenge of identifying, selecting and implementing the right diversifying services for their practices.

Identification and selection Identifying and selecting new service lines requires understanding the firm’s identity and client needs. The selected service line(s) should be easily integrated into and complement the firm’s existing service lines and industry knowledge. For example, valuation services can complement existing estate and gift-tax planning practices, as well as financial reporting and business transaction services.

12 SEPTEMBER/OCTOBER 2016

New and existing clients can perceive firms with the expertise and resources to perform new service-line projects, such as business valuations, as having a differentiating edge.

Ideally, adding a new service line encourages collaboration and cross-selling among the firm’s existing service lines. The investment banking community commonly uses the term synergy in the context of mergers and acquisition. Combined companies are greater than the sum of each individual company. The same concept applies to selecting and adding new service lines in an accounting firm. By offering complementary services, the firm gains economies of scale, increasing efficiency and competitiveness.

However, adding a new service line to the firm’s existing suite of services isn’t sufficient to tackle the price pressure resulting from a highly competitive industry. The key to successfully implementing any new service is becoming an expert and recognized leader in the field. Although many firms have implemented new service lines for their practices, few have successfully become market leaders in those services.

In selecting new service lines, it’s important to consider the types of services in which the firm wants to be recognized as an industry leader. Moreover, it’s critical to know how to leverage existing services to catapult new services into the marketplace. When a firm has some form of specialization, either specific industry knowledge or a niche service line, it’s essential to understand how current specializations may benefit new services. ➡ Pg. 14

Firm Focus

These FICPA members have developed successful niche practices. Here, they discuss how they began and lend their perspectives on entrepreneurship in the accounting profession.

Worldwide growth creates opportunity

By Nestor Guillen, MBA, CPA

M

ore than 20 years ago, I left one of the Big Four accounting firms because I wanted to create my own path to professional independence.

I knew from experience with multinational companies that I couldn’t rely only on basic accounting and tax compliance services to grow a rewarding niche practice.

I was used to dealing with complex tax matters that required colleagues to discuss, analyze and reach the best conclusion on what I called “thin-line tax matters.”

The only way to keep that demanding and challenging professional environment was to do more than basic compliance work.

I developed alliances with two colleagues from my former firm who also left to pursue their dreams. They brought different services than mine, as did two more partners brought in from another Big Four firm. This was the start of a small accounting practice that grew from 17 people to almost 100 in just four years.

with high-quality and valueadded services. But this demands compromise and requires that firms decide how to develop or attract new resources, and make the necessary internal adjustments.

Implications such as inteNestor Guillen, MBA, CPA grating new professionals with various mindsets and backgrounds require open mindedness and a great deal of discussion and follow up. This enables the rest of the team to understand the differences in operation, and perhaps in compensation, and to work together in pursuit of the maximum benefit for everyone in the firm, in terms of business and career development.

The professional accounting industry continues to suffer and endure increasing volumes of low paid and low value-added compliance work. A profusion of basic compliance service supply exceeds demand in most areas. There always will be a colleague who can provide the services you render at comparable quality for a lower price.

Our initial experience was to integrate transfer-pricing documentation services at a time when the issue still was rather new in Latin America. There was much to learn, and few professionals were prepared to deal with it. We brought in experts at no low cost, in terms of salary and the time it took to convince firm partners and managers this would be a good business. But the results proved it was a right and rewarding decision. The valuationservices line followed.

The accounting profession increasingly is focused on delivering compliance work as ever-increasing regulations employ most of the resources of small firms’ professional staff. This has led to lower per-customer billable hours and increased volumes of unsatisfying and unrewarding work – and usually, the urgent takes over the important.

Now I’m again experiencing the development of a new CPA practice from the ground up in the U.S. There have been many developments in the international tax and financial-compliance arena, and many economic and technological developments that demand newer and better information sources to soundly manage a business.

This unrelenting growth of compliance and control of financial flows worldwide generates newer and more complex matters, allowing CPA firms to provide clients

To read Guillen's article in Spanish, visit www.ficpa.org/firmfocus.

FLORIDA CPA TODAY

➡

Pg. 15

www.ficpa.org

13

COVER

story

➡ Continued from Pg. 12

Implementation and integration Expansion doesn’t come without risk and headaches.

Identifying the service line that would propel the firm to the next level is just the beginning. The most difficult part is implementation, which can be costly and time consuming.

Accounting firms have many options available in implementing new services: developing the service internally; acquiring niche firms; acquiring another firm with the service line; or attracting new talent through hiring. Each option has benefits and drawbacks. For example, developing services internally can be time consuming, but generally is less expensive and often leads to easier integration with existing services. On the other hand, a turnkey acquisition of a specialized practice group can bring dayone specialization, but can be an expensive proposition.

With the right planning and

integration of new service

offerings into traditional

assurance and tax-service lines, firms can gain a differentiating edge that will make them more attractive to prospective clients.

14 SEPTEMBER/OCTOBER 2016

Integrating a non-compliance accounting service practice comes with cultural and technical issues.

Many professionals working outside the compliance-accounting industry have different expectations regarding office cultures, operating styles and managerial views. This creates challenges when integrating their services into an existing accounting platform.

It’s crucial to understand what additional resources are required to support the day-today operations of new service lines in the implementation process.

Business-valuation services, for example, require investment in talented valuation specialists and, as with any other firm service line, subscriptions to costly databases, publications and

continuing-education courses. It’s vital to have a solid understanding of the investment necessary to implement and maintain a new service line.

It’s show time: get the message out Once the new service has been selected, implemented and integrated, the firm must ensure existing and prospective clients are aware of it. Because launching a new service is a long and time-consuming process, it’s critical to effectively communicate the firm’s expanded capabilities.

Marketing the new offering must start by ensuring all members of the firm support and understand its abilities.

Trust and collaboration among various service lines is critical to the success of any new implementation project.

Gaining existing clients’ trust in new services can be challenging. It’s essential to have a well-planned communication and education process to maximize existing client adoption. Firms must educate all employees on the service offerings of the new specialization; how they can benefit existing clients; and how best to cross sell new and existing services. Internal referrals during the early implementation of any new service are one of the critical factors in its success.

External communication is equally important to ensure the new offering reaches the target audience. Clear communication, with a focus on how the new offering directly benefits clients, is a must to effectively transmit the new service-line message. Marketing materials should include success stories and targeted statements about how the new services assist clients.

Added service lines may be the differentiator clients seek when choosing an accounting firm. With the right planning and integration of new service offerings into traditional assurance and tax-service lines, firms can gain a differentiating edge that will make them more attractive to prospective clients. FCT Gustavo Perez, ASA/IA is the National Leader of Cherry Bekaert, LLP’s Valuation Services Group. Perez is an accredited senior appraiser in business valuations and intangibles assets by the American Society of Appraisers.

He specializes in valuations for privately and publicly traded entities for purposes of tax compliance, mergers and acquisitions, litigation support and financial reporting.

➡ Continued from Pg. 13

CPA service lines are getting a boost from new mandatory reporting, which demands the use of cutting-edge technology by seasoned professionals who provide clients with the best advice and compliance support.

This mitigates the stress-creating risk of the international business environment and enables clients to develop sound and profitable businesses.

It’s up to alert CPAs to identify and take advantage of new opportunities in the market, and I’m all for it. Are you ready for the challenge? You’d better be.

Nestor Guillen is the founder and managing partner of Guillen Serrano & Associates. Guillen has developed most of his professional career with global accounting firms and has created a number of accounting organizations internationally. He is a CPA licensed in Florida, Georgia and Venezuela and has provided tax, accounting and business-consulting services to individuals and multinational corporations throughout the world in the oil, banking, manufacturing, industrial services, advertising and retail industries, among others.

Becoming a certified minority- or woman-owned business

By Tarsha Jacobs, CPA

W

hen starting my practice over three years ago, I wondered how I’d use my more than 20 years of audit experience to make my business successful. It appeared most accounting practices of similar size focused on write-up; tax planning and compliance; or some level of consulting services. I wanted a way to leverage my auditing experience without exposing my small firm to the risks involved with performing attestation engagements, or being unable to perform such services due to limited resources.

As a small, single-owner CPA firm, partnering with a large firm on government audit engagements presented a great opportunity. Most government entities have women and minority participation goals that must be met by businesses that respond to requests for proposals. These percentage goals vary depending on the area and can be found by visiting the entities’ websites.

The first step in obtaining this type of work is to become a certified minority- or woman-owned business (M/ WBE). This involves submitting an application; proving at least 51 percent ownership and legal residency in the particular state, county or city; and, in some cases, providing financial statements. The great news is some of these entities have reciprocal certification arrangements with other local government entities.

Once certified as a W/MBE, the next step is to develop a relationship with the firms that perform the type of FLORIDA CPA TODAY

work on which you want to partner. This might include attending prebid meetings, workshops hosted by the government entity, or networking events in the area. Registering your business with the business development or procurement department on the entity’s website will allow you to stay informed about contracting opportunities.

Tarsha Jacobs, CPA

Advantages to this type of business arrangement include being able to work on the audit engagement as part of a team rather than having sole responsibility for the entire audit, which a small firm may not have adequate resources to provide. You use their equipment, technology and workpapers and just bring your expertise. It also allows you to set your business apart from others as a trusted partner, which can lead to referrals. Finally, establishing and building on this relationship with larger firms can open future opportunities for your small firm.

Tarsha Jacobs is the owner of Tarsha R. Jacobs, CPA, PLLC in Orlando. She specializes in small and not-for-profit business accounting and auditing. ➡

www.ficpa.org

15

COVER

story

Concierge Billing Moving a practice’s work product from commodity to trusted advisory services

By Shawn M. Williams, CPA

M

y small boutique-style firm services fewer than 300 small to medium-sized businesses, their shareholders and members. The firm has stopped taking new clients without a current client referral. We provide bookkeeping and write up; after-the-fact payroll; tax planning and compliance; and consulting services.

Compliance work has moved our profession toward a value-added model. We’re expected to add value to differentiate the firm from the competition. Rather than purchasing our time, clients purchase the results of our time.

We’ve found a workable model for our firm by understanding clients’ needs and their perception of value early in the process. The firm customizes an ongoing engagement that provides clients with exceptional service and value.

To gain an understanding of clients’ needs and wants, the firm’s intake model was revised to capture information to guide the firm and client through the proposal process.

The intake form was revised to understand clients’ required services and business owners’ wants and needs.

We ask potential clients to complete the intake form as if there are no budgetary constraints. The proposal presents clients with three service-plan choices: basic, expanded and unlimited.

16 SEPTEMBER/OCTOBER 2016

You may have heard about the concept of “concierge billing.” Clients choose from and are billed throughout the year for limited or unlimited access to your advice, services and planning strategies. Clients benefit from having a Shawn Williams, CPA known professional-services budget; a continuing dialog with the firm without fearing the billed phone call; and proven strategies that work across businesses and industries. The firm benefits from a steady year-round cash flow that helps when budgeting firm and staff schedules and expansion.

Have you ever stopped to think what services your firm gives away to clients? Maybe it’s a vast knowledge of a particular industry; solid business advice; or tax-planning strategies or recommendations. What’s the value of those services? Wouldn’t it be nice to package them and be paid for the work you already are doing (sometimes for free)?

Shawn Williams' primary practice focus is serving as a full-service accounting, tax and consulting firm for small/medium-sized businesses and their members and shareholders, with an almost exclusive focus on federal and state tax preparation, planning and controversy representation.

He is chairman of Florida Gulf Coast University’s Accounting and Tax Conference Committee and a member of the FICPA’s State Tax, Federal Tax and Management of an Accounting Practice committees. Williams has served as a public member of the 20th Circuit Grievance Committee of the Florida Bar.

Florida Supreme Court Rules Origin-based Sales Tax on Flowers is Constitutional

By James H. Sutton Jr., CPA, Esq.

I

n an opinion that came down May 26, 2016, the Florida Supreme Court surprised many in the state tax community by holding that an origin-based sales tax law on florists did not impermissibly regulate interstate commerce under Dormant Commerce Clause jurisprudence. Most multistate sales tax laws in the U.S. are “destination based,” meaning goods or services are taxed by the state where the goods and services are shipped or provided. The sales tax laws on florists in the U.S. are rather unique and vary considerably between states. Florida, along with 35 other states with similar laws, tax the florist industry based on where the order was taken, a.k.a. an “origin-based tax.” The remaining 13 states with a sales tax treat florists like any other industry, taxing the sale of flowers in the state were the flowers are destined.

A brief history of why florists are treated differently for sales tax purposes will help put this case in better perspective.

Almost everyone is familiar with the FTD logo associated with flower delivery services, which has been around since 1910. FTD is a business that helps facilitate transactions when you order flowers from a florist in one location, to be fulfilled and delivered by a florist in another location.

The business model originally used the telegraph to create a multistate web of interconnected businesses and has been around since well before the first sales tax law was enacted in 1931 in Mississippi. However, this new excise tax on the sale of goods and services created a real problem for the florist industry. When an order for flowers was placed in one state and the flowers were prepared and delivered by a florist in another state, which state would be entitled to the sales tax? FTD quickly realized there was a substantial risk that both states may try to tax the same transaction. As early as the mid-1930s, FTD decided to start lobbying state by state to create a fixed

18 SEPTEMBER/OCTOBER 2016

way of handling the transaction – to tax the florist that originally took the order (origin-based tax). To date, FTD successfully has lobbied for an origin-based sales tax in 36 states, including Florida. This still leaves 13 states with a destination-based sales tax on the florist industry, along with a substantial risk of flower sales being taxed by two states.

Conversely, over the last 80 years, our court system has been filled with literally hundreds of full dress opinions that limit a state’s ability to regulate (tax) interstate commerce. This is because the U.S. Constitution provides the Federal Government, not the states, has the right to regulate interstate commerce. This constitutional concept is why the U.S. sales-tax system has developed into a destination-based tax, because states believe they are constitutionally limited to tax a good or service that is irrevocably destined outside that state’s borders. So, while a state law creating an origin-based tax for an industry might have been constitutional in the 1930s, the development of our understanding of a state’s limitations on taxing interstate commerce likely would judicially frown on any state trying to impose such a law today. So it is truly surprising that no case dealing with the florist industry has come forth over the past 80 years to question the 36 states with an origin-based law, at least until now. Which brings us back to our Florida florist at hand.

Florida’s statute 212.05(1)(l) provides as follows: Florists located in this state are liable for sales tax on sales to retail customers regardless of where or by whom the items sold are to be delivered. Florists located in this state are not liable for sales tax on payments received from other florists for items delivered to customers in this state. ➡ Pg. 20

State Tax Committee Members React to Ruling Here, a few FICPA State Tax Committee members share their thoughts about this case and what implications it might have on other industries, and in Florida overall. We welcome your thoughts on FICPA Connect at www.ficpa. org.

Glenn Bedonie, CPA Many of our professional colleagues were shocked, saddened and dismayed about the decision reached by the Florida Supreme Court in its ruling in the case of Florida Department of Revenue vs. American Business USA Corp, Case No. SC14-2401 (Fla. Sp. Ct. 2016). On further review of this decision, it’s apparent no other decision should or could have been reached by the state’s highest court. The decision follows guidance in the U.S. Supreme Court’s rulings in Oklahoma Tax Comm’n v.

Jefferson Lines Inc. 514 U.S. 175 (1995); Goldberg v.

Sweet, 488 U.S. 252 (1989); and Wardair Canada v. Fla. Dept. of Rev., 477 U.S. 1 (1986), which held activities beginning at the source or origin of taxation is perfectly legal. There’s absolutely nothing legally wrong with imposing a tax at the origin of a transaction.

The Florida Legislature has broad legal authority to approve various taxation schemes in sales/use and gross receipts taxes, which may be applied to various transactions involving goods and services. We hope the taxing authorities take this broad discretion in creating tax laws applied to residents and businesses in this state under close scrutiny, remembering Daniel Webster’s famous quote in his court argument: “The power to tax is the power to destroy.”

Glenn Bedonie is the owner of Glenn A. Bedonie CPA, PA, a consulting firm engaged exclusively in state and local tax matters.

Kevin Herzberg, CPA Does this decision really give tax practitioners any pause about potentially impacting the sourcing rules under the FLORIDA CPA TODAY

Florida sales tax? The short answer is this case does not lead one to believe a dramatic change is on the horizon.

There is one other instance of origin-based sourcing for Florida sales tax law that comes to mind. Under Rule 12A1.007(13)(c)1., F.A.C., rental-car agencies are required to collect tax based on the location of the pickup point (including local option taxes and surcharges). This is the case even when a car is used or dropped off in another state.

The rental car and the florist examples of sourcing at origin appear to result from a desire to ease complexity in the area of compliance. Ease for the taxpayer to dutifully collect tax once on each transaction. Likewise, ease for the Florida Department of Revenue (DOR) to audit that amount. Both types of transactions occur with regularity in Florida and throughout the country. Giving some clarity and easing compliance is the ultimate method to ensure enforcement.

Many years ago, the Florida Legislature changed the sourcing of local option taxes to a destination basis for most items (except those mentioned previously).

Furthermore, the Legislature acted in the late 1990s to specifically codify the long-standing practice of the florist rule with origin-based sourcing. Therefore, since there is a statute directly on point supporting origin-based sourcing for florists, the Legislature likely continues to agree with this approach.

It would appear the Legislature does not have the desire at this time to change the law to require DOR to reverse its long-accepted practices on sourcing sales tax on a destination basis.

Kevin Herzberg is a longtime member of the FICPA State Tax Committee. He dedicates his practice to state-tax issues and is the leader of Grant Thornton LLP’s Florida state-tax practice. ➡ Pg. 24 www.ficpa.org

19

➡ Continued from Pg. 18 The taxpayer, American Business USA Corp., is a small, family owned business operating out of the business owners’ home in Wellington, Fla. The “florist” company operated a web site that offered flowers, gift baskets and other items for sale, but had no actual inventory of flowers. Instead, the company merely operated a web site that passed the orders from customers to brick and mortar florists around the country and literally around the world. Upon advice of tax counsel when the business started, this small family business began only taxing flower sales that were delivered to an address in Florida, like any other industry. Any sales destined to a non-Florida address were not taxed. During a routine Florida sales and use tax audit, the taxpayer learned of Florida’s unusual treatment of the florist industry.

In February 2012, the Department of Revenue (DOR) assessed the company over $120,000 of tax and interest, primarily due to the out-of-state sale of flowers. The taxpayer appealed the case directly to the Division of Administrative Hearings (DOAH) in May 2012 (DOAH case No. 12-2527). DOAH issued the recommended order in favor of DOR in February 2013, with the final agency order issued in March 2013. The taxpayer appealed the recommended order in the Fourth District Court of Appeals (DCA) in April 2013 (151 So. 3d 67, 4th DCA Fla.). In 2014, the Fourth DCA reversed the lower court in an opinion providing a very thorough history of the commerce clause stemming from a weakness in the Articles of Confederation through many of decades of cases on point. The Fourth DCA also went through the well-established test for whether a state’s tax impermissibly regulates interstate commerce under the commerce clause. The four prongs of what has become known as the Complete Auto Transit1 Test are 1) substantial nexus to the taxing state, 2) tax is fairly apportioned, 3) no discrimination against interstate commerce and 4) fairly related to the services provided by the state. The holding of the Fourth DCA was as follows: [W]e find that assessment of sales taxes on the sale of flowers, gift baskets, and tangible personal property outside Florida, ordered by out-of-state customers for out-of-state delivery, violates the commerce clause of the United States Constitution. ➡ Pg. 22 20 SEPTEMBER/OCTOBER 2016

Fastest smartest malpractice insurance. Period.

800.906.9654 GilsbarPRO.com

FLORIDA CPA TODAY

www.ficpa.org

21

➥ Continued from Pg. 20

DOR appealed the decision to the Florida Supreme Court in December 2014. The taxpayer limited the question on appeal to whether the taxpayer had substantial nexus, the first prong of the Complete Auto Transit test. However, the Court briefly went through the four prongs of Complete Auto Transit and then issued an opinion in May 2016 reversing the Fourth DCA holding as follows: Based on the foregoing analysis, we quash the decision [ ] to the extent that it holds that the assessment of sales tax on sales of flowers, gift baskets and other items of tangible personal property ordered by outof-state customers for out-of-state delivery violates the Dormant Commerce Clause of the United States Constitution.2 As soon as the opinion was issued, the phones of every state and local tax professional in Florida began ringing off the hooks. Many industries were worried what the case may mean for their industry. Could Florida begin taxing every local industry with an origin-based system, effectively taxing every sale no matter where the goods or services were provided? Such a change in law could upend decades of settled law and cause many industries to locate out of Florida in short order. What if every

Internet retailer in Florida had to collect Florida sales tax on every sale, regardless of the destination? We have received assurances from top sources in DOR they have no intention of applying an origin-based tax to any other industry. However, the Legislature already imposes an origin-based tax on manufacturer of tangible personal property that is installed into real property. Now that we have a Florida Supreme Court opinion saying an originbased sales tax does not violate the U.S. Constitution, what is to stop DOR from expanding sales taxes to other industries? FCT James Sutton Jr. is a partner with Moffa, Sutton, & Donnini, PA and a member of the FICPA State Tax Committee.

The views expressed by FICPA State Tax Committee members are representative of the individuals and not the firms with which they are associated or the FICPA. The members’ expert commentary is meant to provide the perspective of professionals in the field of state taxation.

Endnotes See, Complete Auto Transit, Inc. v. Brady, 430 U.S. 274, (1977).

1

Florida Department of Revenue vs. American Business USA Corp, Case No. SC14-2401 (Fla. Sp. Ct. 2016).

2

Follow the FICPA LinkedIn

YouTube

Facebook Google + Twitter

22 SEPTEMBER/OCTOBER 2016

Instagram

➡ Continued from Pg. 19

Joseph P. Handy, CPA, CFST The Florida Supreme Court has provided its wisdom and divine guidance on the issue of Florida’s right to tax transactions that take place in Florida where sale, possession, delivery and use all take place outside its jurisdictional limits.

There are collateral issues to consider if Florida extends the Supreme Court ruling to all exported sales: •• The end recipient of the merchandise may owe a use tax in their home state, thereby creating a pyramiding of tax on a single transaction. Many states allow a credit for taxes legally paid to other states.

•• If the concept of origin taxation is adopted for all sales originated in Florida, how will that place Florida-based businesses when competing with other out-of-state businesses?

•• Will origin-based taxation supplant the exemption for exported sales? Florida is a major export hub to the Caribbean and South America and will the American Business USA court ruling extend to all exported sales?

24 SEPTEMBER/OCTOBER 2016

•• How will mail-order merchants, such as Amazon, collect a sales tax should Florida adopt origin-based taxation and again collect a tax in the destination state because they have a business presence there also?

There seems to be such a myriad of taxation issues generated by origin-based sourcing of sales taxes that it seems incomprehensible that anyone in Tallahassee would expand this decision to other taxpayers and types of businesses, but you just never know! FCT Joseph Handy is the managing member of Joseph P. Handy, CPA, PLC and has a specialty practice in Florida tax compliance, consultation and audit representation.

He has been a member of the Florida State Tax Committee for 12 years and currently serves as its chair.

The views expressed by FICPA State Tax Committee members are representative of the individuals and not the firms with which they are associated or the FICPA. The members’ expert commentary is meant to provide the perspective of professionals in the field of state taxation.

The Show You Know – Only Better Sept. 28-30, 2016 Broward County Convention Center Fort Lauderdale or Online #ficpaABS

More International Content Join us as we explore the latest trends, policies and regulations you need to know to be part of South Florida’s expanding international banking and finance market.

Hands-On Technology Workshops

Business & Industry Focus

The Show offers six hands-on technology workshops to enhance your skill set.

We designed sessions to meet the unique needs and requirements of CPAs working in industry.

Explore our beautiful intracoastal waterways on Thursday evening for the inaugural Sunset Cruise.

Learn More:

www.ficpa.org/ABS First Time Attending? No worries. Join us at our special

Meet ‘n’ Greet for first-time attendees. You’ll feel right at home!

The 2016 Accounting & Business Show is endorsed by the Cuban-American Certified Public Accountants Association Inc.

TAKE

five

Meet Karen Vergara, CPA

and, more importantly, we can be on the frontline of those changes.

Also, learning should never stop. It’s important to keep up with your technical skills, but more importantly, it’s imperative to refine your interpersonal skills. In my few years as a professional, I’ve learned those who know how to effectively interact with their superiors, peers and clients are more successful in the long run.

As 2016-2017 chair of the FICPA’s Central Florida Chapter, Karen Vergara is the chapter’s youngest chair to date. After graduating from the University of Central Florida in 2012, she joined her mentor’s firm, Mia Thomas PA. She later joined Deloitte, auditing clients in the tourism/hospitality and health care industries.

Vergara attended the FICPA Minority Summer Residency Program in 2007. She is a two-time recipient of the Hispanic Heritage Scholarship of Metro Orlando, serves on the organization’s Board of Directors and is chair of its Alumni Committee. She has been recognized by the Association of Latino Professionals in Finance and Accounting as Latina of the Year and was featured in Latino Leaders magazine in 2015 for her involvement with the organization. She was named among the FICPA 26 Under 36 in 2015 and received the National Academy Foundation Alumni Award in 2016.

Currently working at the Hispanic Business Initiative Fund, Vergara translates her accounting and auditing knowledge into practical consulting services for entrepreneurs and small businesses. In her free time, she enjoys training for her next triathlon and planning trips around the world with her husband, Jorge.

W

hat are the most valuable things you’ve learned so far in your career?

Becoming a CPA was the best choice I could have made. As CPAs, we translate the language of business into results that affect all types of businesses –

26 SEPTEMBER/OCTOBER 2016

Has your career been the same or different as you envisioned it would be?

Very different. When I got my CPA license and started working with Deloitte, I thought I’d become a partner one day. However, my priorities and life circumstances changed and I made a 180-degree turn, joining a nonprofit as a business consultant for small businesses. I’ve learned there’s nothing wrong with becoming partner of a Big4, working at a non-profit or opening your own firm. The most important thing is that every day, you’re closer to fulfilling your goals and dreams by working on something you’re truly passionate about.

What’s your favorite quote?

“When we don’t know where we are going, at least we must know who we are.” – Paulo Coelho What’s the most interesting place you’ve visited?

A few months ago I visited a few countries in the Middle East. I fell in love with Israel, but even more with the Old City of Jerusalem. I was fascinated by the different cultures, history and sites housed in just one square kilometer.

Where do you see yourself, professionally and personally, in 10 years?

I hope that in 10 years, I’ve started raising children with my husband. I also hope to have started my own business helping small and medium-sized businesses with their long-term strategies and growth. And I hope to continue my involvement with the FICPA, helping our profession continue to thrive so more students decide to become CPAs. FCT

Orlando or Online | November 3 - 4, 2016 Rosen Shingle Creek Resort & Golf Club

www.ficpa.org/CIRA

FLORIDA CPA TODAY

www.ficpa.org

27

C PA s I N

the spotlight

Boca Raton: Daszkal Bolton LLP named Teri Kaye to its executive committee.

Boca Raton: Grau & Associates announced the promotion of Stella Matevosyan to audit senior.

GOULD

HARRIS

Jacksonville: The LBA Group has added Marley Harris as director of business accounting solutions. The firm also announced the promotions of Andrew Brinson, Tina Dryden, Gregory Lacina and Cody Vincent to tax manager.

BRINSON

LUCAS

Fort Pierce: Brad Gould, shareholder at Dean, Mead, Minton & Zwemer, was appointed to vice chair of the American Bar Association’s Tax Section S Corporations Committee for 2016-2017.

POHLMAN

Fort Myers: Jack Pohlman, shareholder at Wiltshire, Whitley, Richardson & English PA, received the 2016 Vocational Service Leadership Award from the Rotary Club of Fort Myers.

Gainesville: James Moore, Certified Public Accountants and Consultants, announced the promotions of Traci Bacom to administrative services supervisor; Jane Lastinger to manager; Samantha Lussier to senior accountant; Brendan McKitrick to manager; David Moor to senior accountant; Matt Norris to senior accountant; and Daniel Roccanti to associate accountant.

Miami: Howard Lucas, CPA Partner with Goldstein Schechter Koch, was elected president of the National Kidney Foundation of Florida.

DRYDEN

GARCIA LACINA

For more news about members and other Florida CPAs, visit CPAs in the Spotlight at www.ficpa.org/cpaspotlight.

The space for Who’s News, Transitions and other announcements published on this page is limited to news focusing on promotions and new hires for FICPA members; speeches by members at professional conferences; and other firm news, such as recognition of business achievements. We do not publish FICPA committee appointments as a part of this feature because of space limitations. Submissions for CPAs in the Spotlight can be emailed to communications@ficpa.org.

28 SEPTEMBER/OCTOBER 2016

VINCENT

Miami: Hancock Askew & Co., LLP, Accountants and Advisors announced that Carlos Garcia, Alfredo Reynoso and Patricia Siles will be working at the firm’s new office in Miami. Carlos Garcia also was also elected program chair of Leadership Florida for the 2016-2017 year.

Ocala: Sheila Bartczak and Gwynne Lewis have been named to partner/ shareholder at Duggan, Joiner & Company.

Pompano Beach: Hinkle, Richter & Rhine LLP announced that staff accountant Elizabeth Schmidt has passed the

CPA examination and earned her CPA license.

Sarasota: Kerkering Barberio & Co., Certified Public Accountants, moved its Tampa office to a new location in the Westshore District. The firm also was recognized as one of the “Best Public

Accounting Firms for Leadership Equity” by the 2016 Accounting MOVE Project. Shareholder Heather Williams was elected a member of the board of trustees for Forty Carrots Family Center, a local nonprofit organization. The firm’s Young Professionals

volunteered with Habitat for Humanity to prepare a home-build site in Sarasota and held a company picnic fundraiser to help donate more than $3,400 in support of Easter Seals Southwest Florida.

Five CPAs serving in the state House of Representatives is better than four.

You can be part of the equation by supporting the Florida CPA/PAC. Contribute today and add to our profession’s success in 2016!

www.ficpa.org/PACcontribute F LO R I D A Florida CPA Political Action Committee, Inc. FLORIDA CPA TODAY

Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others. The Florida CPA/PAC is register as a corporation with the Florida Division of Corporations and as a Political Committee with the Florida Department of State.

www.ficpa.org

29

ACCOUNTING SCHOLARS reports

STAFF

LEADERSHIP SYMPOSIUM

Emerging Professionals

By Jennifer Allen, student initiatives manager

Accounting Scholars Leadership Symposium Students, Members Learn and Connect

T

he second annual Accounting Scholars Leadership Symposium (ASLS) was held in conjunction with the Mega CPE Conference at the Gaylord Palms Resort in Orlando. Twenty-three outstanding college students attended the two-day invitational program to strengthen their professional skills and learn about the limitless possibilities and benefits of earning the CPA credential.

The ASLS involves many expenses, such as a plated dinner where business-meeting etiquette is demonstrated; bus transportation to firm visits; and hotel and travel expenses. We thank our sponsors who had the passion and interest to provide the needed support: Sarah Funk CPA, CGMA; Popular Association Banking; and Surgent CPA Review.

ASLS

The student attendees were: Devry University – Erika Larios and Denine Jankowski; Edward Waters College – Brenda Henry; Florida Atlantic University – Naira Aliyeva, Alejandro Escalante, Genaro Fernandez, Jannell Gourzong and Mara Vega; Florida Gulf Coast University – Alexandra Mitchell and Corey St. Clair; Florida International University – Rummesa Abrar; Indian River State College – Ashley Lezniewicz; Jacksonville University – Milana Gilo; Nova Southeastern University – Luz Davila; Rollins College – Michelle Hernandez; St. Leo University – Terrance Brown; University of Central Florida – Jessica Bezak, Laila Kolarich, Weiting Li and Dalton Son; University of South Florida – Kyle Nottingham, Michelle Teeter and Saul Vasquez.

On day one, students attended seven sessions ranging from A Day in the Life of a CPA and How to Land Your Next Job to Social Skills for Success and Florida Board of Accountancy Q&A. Among the guest speakers were these FICPA members who generously volunteered their time: Tarsha Jacobs, Nick Lebredo, Natasha Novikov, Bruce Nunnally and Gabe Shibly.

On day two of the symposium, students visited BDO USA, LLP; CliftonLarsonAllen; Moore, Stephens, Lovelace, PA; and the Walt Disney Enterprise Controllership. In addition to their hospitality, hosts provided insight about their company practice and what they offered accounting interns and starting CPAs. Many of the students hadn’t entered an accounting-firm office before the symposium.

“This has been a very valuable experience,” said Naira Aliyeva of Florida Atlantic University. “I came to this event uncertain about my future goals and I left feeling encouraged, connected and equipped.”

“It was an awesome experience and I was able to learn about the endless opportunities for a CPA,” said Terrance Brown of St. Leo University. “Thank you for organizing this symposium!” FCT To see a complete list of 2016 ASLS attendees, visit www.ficpa.org/ASLS.

ASLS attendees meet with their mentors over lunch. Pictured left to right: Corey St. Clair and Key O’Keefe; Alexandra Mitchell and Women to Watch Honoree Veronica Larriva; and Erika Larios and FICPA Past President Jose Valiente.

Twenty-three outstanding college students attend the ASLS at the Gaylord Palms Resort in Orlando.

New and Newly Certified Members The FICPA welcomes many new members throughout the year and congratulates those who recently have become certified.

Visit www.ficpa.org/newmembers to meet our new members.

Visit www.ficpa.org/newlycertified to congratulate our newly certified members.

30 SEPTEMBER/OCTOBER 2016

From FICPA staff reports

Educational Foundation

By Jason Zaborske, FICPA educational foundation development director

Foundation Thanks Ocean Reef Sponsors

T

he FICPA Educational Foundation thanks our amazing sponsors of the 2016 Family Retreat and Golf Tournament at Ocean Reef!

Without them, this event wouldn’t be a continued success. Each year, CPAs and their families have a memorable time enjoying Key Largo and networking while supporting the Foundation.

FCT

To view photos from this year’s Family Retreat and Golf Tournament at Ocean Reef, visit www.ficpa.org/retreat.

2016 Golf Tournament Sponsors Primary Eagle HSBC Par Edwin Watts Golf Fish Key West Chase Bank Niles, Knight & Company, PLLC

Hole Baker, Hyatt, Homrich & Zokvic, PA Brilliant EisnerAmper Keith Jones, CPA Law Offices of Gilbert & Smallman PLLC Rick Smith, CPA

2016 Retreat Sponsors Platinum Kaufman Rossin Morrison, Brown, Argiz & Farra, LLC Chairman’s Cocktail Reception Elizabeth Carlson, CPA Friday Night Beach Dinner Coastal Wealth Dive-in Movie GAG Consulting Services Inc. Ocean Reef Raffle Brigade Bookkeeping Silver Berkowitz Pollack Brant Advisors and Accountants Foreign Parts Distributors Inc.

FICPA leaders, members and their families enjoyed a beach luau and golf tournament during the retreat, which was held at Ocean Reef Club in Key Largo.

Bronze Bibby Financial Services EisnerAmper Entertainment Progressive FICPA Chapter Atlantic Chapter Miami Dade Chapter Miami Downtown Chapter North Dade/South Broward Chapter South Dade Chapter FLORIDA CPA TODAY

www.ficpa.org

31

NEWS

briefs

Accounting Today Names FICPA Member Firms Best to Work For

A

ccounting Today recently announced its 2016 Best Accounting Firms to Work For, and three FICPA member firms are among the honorees. The annual survey and awards program, conducted in partnership with Best Companies Group, is designed to identify, recognize and honor the 100 employers who best benefit the accounting profession’s economy, workforce and businesses.

The FICPA congratulates these member firms: •• Ennis, Pellum & Associates CPAs, Jacksonville •• Garcia, Espinosa, Miyares & Co., Coral Gables •• James Moore & Co., Gainesville To be considered for participation, companies must be public accounting firms in the U.S.; have at least 15 employees working in the U.S.; and be in business for at least one year. FCT For more information about the program, visit bestaccountingfirmstoworkfor.com.

32 SEPTEMBER/OCTOBER 2016

McCall Receives AICPA Award

T

he AICPA recently presented FICPA member Sam McCall, PhD, CPA, CGMA, CGFM, CIA, CGAP, CIG with its 2016 Outstanding CPA in Government Career Contribution Award. The award recognizes significant contributions to the CPA profession through government service at the local, state or federal level. Award winners have demonstrated exceptional leadership, high ethical standards and a track record of professional excellence.

Sam McCall, CPA

“We’re so honored that Sam was chosen to receive this prestigious, welldeserved award,” said FICPA President/CEO Deborah Curry, CPA, CGMA. “He has done so much to help further the goals of our organization, and of the profession. We congratulate him and thank him wholeheartedly for his service at every level.”

During his 47-year career, McCall has distinguished himself through his work and significant contributions, including as auditor for the City of Tallahassee for 13 years and as Florida Deputy Auditor General for 13 years. For the last five years, McCall also has been a member of the Federal Accounting Standards Advisory Board that establishes GAAP for the federal government. He currently is the chief audit officer at Florida State University. FCT

BOA Changes Educational Requirements for CPA Licensure

T

he Florida Board of Accountancy recently changed Rule 61H1-27.002, which required Florida accounting students to take two business law courses to qualify to sit for the uniform CPA Exam. The Uniform Accountancy Act suggests a minimum of 24 semester hours in accounting, and an added 24 semester hours in non-accounting business courses. In most U.S. jurisdictions it usually is within those 48 core hours that business law can be included in the requirements of an applicant’s educational program.

Effective July 11, 2016, the business law course requirement was reduced. Now, only three semester/four quarter hours of business

law will be required for CPA licensure, instead of the previous six semester/eight quarter hours. The one required business law course, which can be taken at any level, must include coverage of the Uniform Commercial Code, contracts and torts.

The new ruling will not affect the 150 semester/200 quarter hours required for licensure or the 120 semester/160 quarter hour minimum needed to sit for the CPA exam. Students who previously applied for the exam and were notified that they are lacking three hours of business law can send an email with their application number to cpa.applications@myfloridalicense.com.

For information about FICPA student initiatives, contact FICPA Student Initiatives Manager Jennifer Allen at allenj@ficpa.org or (850) 224-2727, Ext. 422. For information about regulatory issues, contact FICPA Governmental Affairs Director Justin Thames at thamesj@ficpa.org or (850) 224-2727, Ext. 204. FCT

DBPR Has New Offices, Mailing Address

A

fter months of planning, the Florida Department of Business and Professional Regulation (DBPR) has moved.

The state agency, including its Customer Contact Center, now is located at 2601 Blairstone Road, Tallahassee, FL 32399. Please

FLORIDA CPA TODAY

mail all CPA-licensure documents to the new address. DBPR’s Customer Contact Center phone number remains the same: (850) 487-1395. FCT

www.ficpa.org

33

MARKET

place

Positions available South Pinellas County CPA firm is seeking a CPA candidate w/2-5 yrs exp. in public accounting w/ strong QuickBooks, tax skills & auditing (optional). Email resume to info@cpapartnersllc.com or fax to (727) 398-5560.

Established SW Florida CPA firm is looking to hire senior auditors with 3-5 years current audit experience. Requirements include strong computer skills, the ability to meet specific deadlines and superior communication skills.

Benefits include competitive wages; 401(k); health, long-term disability and dental insurance; CPE and licenses paid; flexible work schedule; and PTO. Email confidential cover letter, including salary expectations and resume, to reply@ficpa.org and reference file number B PA 09 10 16.

Morgan Jacoby Thurn Boyle and Associates, a well-established Vero Beach CPA firm, is seeking qualified full time tax professionals. Candidates must have 3-7 years public accounting experience and be a CPA/CPA candidate. Benefits package available. Mail resume to Morgan Jacoby Thurn Boyle & Associates PA, P.O. Box 249, Vero Beach, FL 32961 or email to info@mjtbcpa. com.

Cummings & Lockwood LLC is seeking a fiduciary accountant for its Bonita Springs office.

Candidate must have experience preparing tax returns, including 1040s, 1041s, 709s & 706s; CPA preferred. Ideal for professional who enjoys independence and high-level relationship with

attorneys. Benefits include 3 weeks’ vacation to start, 4 weeks’ vacation year 2 and beyond, 11 holidays, personal and sick days, 401(k), medical, dental, flexible spending account and more. Please email resume to oeldridge@cl-law.com, fax to (239) 430-3344 or mail to Administrator, P.O. Box 413032, Naples, FL 34101. EOE/AA Auditor – Fort Lauderdale – Established, fast-paced CPA firm in Ft. Lauderdale seeks motivated, well-organized auditor with 2-5 years’ experience; CIRA experience and knowledge of Engagement software a plus; friendly work environment; strong work ethic; candidates must be detail oriented, able to work independently and consistently perform accurately and punctually. Good pay and benefits; immediate opening.

Email MKline@pmmpllp.com.

Positions Wanted Boca Raton CPA seeking contract work in taxation and accounting throughout the year.

Email HopeKamstraCPA@gmail. com.

Self-employed Jacksonville CPA with over 30 years of public accounting experience focusing on taxation seeks contract work throughout the year. Email reply@ficpa.org and reference file number W PW 09 10 16.

Office space Well-established wealth management practice has private office available inside

our 2,600 sq ft office, prime location in Jacksonville. Fully furnished, including: Internet, phone, utilities, conference rooms, kitchenette, free parking.

Contact Jeff (904) 312-9753 or jeffhartman@itppartners.com.

Shared office space with other CPAs near downtown Sarasota available immediately. Two rooms available. Expense sharing possible. No long-term commitment required. Email inquiries to adm@mastcpa.com or call Allen at (941) 953-5036.

Well-established South Broward CPA firm seeking to share office space in upscale class “B+” building located near all major highways. All amenities. Email inquiries to ajcpapa@aol.com or call Hannah at (954) 985-1040.

Office space for CPA in Miami Kendall has two offices for rent – 144 sq. ft. and 126 sq. ft.

Furnished, conference room, kitchen, telephone, other equipment and filing cabinets.

Free parking. Call (305) 595-2149 or email juan@katztax.com.

NMB/Aventura AV-rated law firm has offices available to share, along with possible cross-referral opportunities. Four offices and secretarial stations are available with use of conference rooms and kitchen, reception services, phone and message system, Internet and other amenities are also included. Building offers ample free parking. For inquires email Mirlene@estatetaxlawyers.com or call (305) 932-2000.

Visit www.ficpa.org/classifiedsonline for complete classified ad policies.

34 SEPTEMBER/OCTOBER 2016

West Broward CPA firm has office space to share. Please call (954)722-9250.

Sarasota – Well-established Sarasota CPA looking to share office space with another CPA or small firm close to the downtown area. I have excess tax and accounting work available and these clients become yours. I will consider all options. Email inquiries to rick@berocpas.com or call Rick at (941) 953-4751.

Practices Wanted for Purchase or Merger

Growing S. Florida CPA firm looking to purchase or merge with a retirement-minded CPA in Florida. Favorable purchase terms offered with continuing employment opportunities available. Please contact Jeff Taraboulos at info@ksdt-cpa.com or (305) 670-3370.

Well respected Boynton Beach wealth management firm looking for CPA(s) for possible merger in an effort to better serve clients by offering comprehensive tax & financial planning. Reply to Ira@ Materetsky.com.

Fintz CPA, PA, a growing Plantation-based CPA firm, is looking to acquire retirement-

FLORIDA CPA TODAY

minded CPAs in the Tri-County South Florida area (Dade, Broward, Palm Beach). We offer customizable succession-planning solutions. Please email Betsy, betsy@fintzcpa.com, or call us at (954) 440-0320.

Tax-oriented CPA firm located in Pompano Beach off I-95 is seeking growth through merger or acquisition. We offer a relaxed but professional environment and we are open to sharing our new spacious offices as well. Call in confidence (954) 545-9394 or email Hoffman.vanvorst@gmail. com.

Established quality Ft. Lauderdale CPA firm seeks to acquire practice from retirement-minded CPA w/ transition of your choice. Email inquiries to ajcpapa@aol.com or call Hannah at (954) 985-1040.

Established and growing Orlando-based CPA firm looking to purchase or merge with retirement-minded CPAs and younger CPAs with smaller practices looking for support and growth opportunities. Reply to LSRCPA@aol.com.

CPA looking to purchase a small practice in northern Broward County or Palm Beach County.

Ideal practice would be between $100K-$200K. I have many years of owning and running an accounting practice and am very well versed in all aspects of taxes.

I am looking for the current owner to transition the practice at his own pace. Please email me at cpatig@aol.com

Melbourne CPA (20 years) desires to merge with, or buy the practice of, a local retirementminded, established CPA. Will consider relocating to all the central east coast of Florida down to Stuart. Send inquiries to JudyGallagherCPA@aol.com.

Tampa RIA firm wanting to merge with a CPA firm seeking to employ and grow the investment side of the practice. Contact Steve at tpallc@msn.com or (813) 7482198.

Northeast Florida CPA firm looking to acquire practices in Jacksonville, St. Augustine and surrounding areas to grow our practice and better service our clients’ needs. Please contact us at info@duvalfields.com.

Practices for Sale

CPA firms for sale – Jacksonville, FL (Southside): 73% tax, 27% bookkeeping/compilations/ other. Annual receipts $370,000.

Sumter County: Tax practice in rapidly growing community.

Annual receipts $272,000. MetroTampa area north: 60% tax, 40% bookkeeping with some not-for-profit audits. Owners willing to work after the sale to help in transition. Annual receipts $850,000. To see more listings, go to our website at: www. akinsprofessionalbrokerage. com. Call David Akins, CPA or Buddy Turman at (877) 277-0272. Email: david@ akinsprofessionalbrokerage. com or buddy@ akinsprofessionalbrokerage.com.

www.ficpa.org

35

MARKET

place

Practices Wanted! Cash Buyers Waiting! List your practice with Florida’s No. 1 Accounting Brokerage Firm: Professional Accounting Sales. No upfront fees. No long-term listing agreements. Recent references available. Selling practices in Florida for over 33 years…

PRACTICES NOW AVAILABLE include: St. Pete $250,000…

Daytona Beach area $315,000…

Florida Panhandle $1,150,000…

Alachua County $950,000…

Kissimmee $250,000… SarasotaBradenton area $150,000 to $350,000… North Tampa Bay $880,000… Lakeland area $250,000... Tampa Dale Mabry area $540,000… Miami $180,000… Palm Beach County $700,000… St. Augustine area $235,000… many others! Contact Erwin Rosenblatt: (561) 666-6737 or Leon Faris, CPA (800)729-9031 with Professional Accounting Sales, or visit our website at: www.cpasales.com.

Well-established Jacksonville, Fla. CPA firm w/solid business, estate and personal bookkeeping/

tax practice seeks partner, merger or acquisition for retirementminded partner. Currently 2 partners and 3 professional staff.

Annual receipts of $600k + and growing. Principals will continue employment for any desired time period. Email reply@ficpa.org and reference file number L FS 05 06 16.

SW Florida CPA selling small business/personal tax practice – revenues $130,000 plus.

Office condo available for rent or purchase. Will continue employment as required. Email reply@ficpa.org and reference file number S FS 09 10 16.

DOR

update

DOR Creates Online Refunds Process, Partners with SCORE

By Renee Watters, DOR chief of public information

T

he Florida Department of Revenue (DOR) continually looks for new and innovative ways to help taxpayers understand and comply with Florida tax laws.

Submit documentation for refund claims online The DOR website now allows taxpayers to check the status of a DOR refund claim and submit supporting documentation. Taxpayers may visit dor.myflorida.com/dor/taxes/refunds. html and click on “Check Status of Refund Claim/Send Supporting Documentation.”

When a taxpayer submits documentation on the DOR website, it is scanned for viruses and stored on a separate server. The auditor assigned to the case receives email notification of the submission and a link to the file is created in the case-management system. This new process streamlines the submission of refund documentation and improves the efficiency of the refunds process.

For more information email Andrea Hunter, refunds process administrator, at hunteran@ dor.state.fl.us.

38 SEPTEMBER/OCTOBER 2016

New partnership provides taxpayer education, business advice and mentoring One of the priorities of DOR’s General Tax Administration Program is to raise tax awareness and enhance voluntary compliance by strengthening partnerships with industry, trade and professional associations.

In support of this outreach priority, DOR recently entered an agreement with SCORE, a non-profit association of volunteer business mentors supported by the U.S. Small Business Administration. SCORE’s experienced businesspeople volunteer their time to provide free business advice and mentoring, as well as low- or no-cost education. New and existing businesses can benefit from SCORE’s advice on business topics such as inventory management and business operations. As part of the partnership, SCORE mentors will conduct workshops at DOR service centers and provide taxpayer-education webinars.

DOR is piloting the mentoring program at three service centers and will evaluate the results for potential statewide expansion. FCT

For more information email Grace Reeves, taxpayer education and communication, at reevesg@dor.state.fl.us.

Ethics.

At the Speed of Business.

Prepare yourself to face the complex, challenging and evolving ethical issues of today and tomorrow.

The FICPA’s ethic courses, specialized for CPAs working in business, industry and government, build the trust that your clients, employers, colleagues and the public deserve while protecting your hard-earned license.

Whether you are looking for in-person, OnDemand, online or even onsite ethics training, the FICPA’s has the learning solutions to fit your needs.

FICPA ethic courses comply with the ethics requirements for Florida CPAs established by the Florida Board of Accountancy.

www.ficpa.org/Ethics FLORIDA CPA TODAY

www.ficpa.org

39

F L O R I D A

Florida Institute of Certified Public Accountants P.O. Box 5437 Tallahassee, FL 32314-5437