MACPA Statement // Spring 2020

STATEMENT MACPA’S

SPRING 2020

A positive impact in uncertain times Amid global disruption, here’s how to use anticipation to tilt the scales for the better.

Page 4

VIRUS UPDATES:

For the latest, visit

MACPA.org/COVID-19

ALSO INSIDE: How to protect your small business from a pandemic and beyond Page 9 General Assembly: One extraordinary session, one rousing victory Page 20

Maryland Association of Certified Public Accountants, Inc.

SECU is Good for Business.

It’s that simple.

Your SECU Business Relationship team takes the time to understand your needs and requirements, so together we can select the best solutions for your business.

Commercial Mortgages Business Cash Back VisaÂŽ Business Lines of Credit Term Loans Business Deposit Accounts

secumd.org/BUSINE$$

CONTENTS Spring 2020 | Maryland Association of Certified Public Accountants, Inc.

CHAIR’S COLUMN.............................................................................. 2 FEATURES A positive impact in uncertain times In uncertain times, you have more control than you realize.............................. 4 How to protect your small business from a pandemic and beyond.................. 9 Coronavirus: How prepared is your business?................................................. 16

DEPARTMENTS News and Views................................................................................................... 19 Tax Corner............................................................................................................ 23 Business and Industry.......................................................................................... 27 Diversity and Inclusion......................................................................................... 31 Technology........................................................................................................... 33 Financial Planning................................................................................................ 36

MEMBER NOTES................................................................................ 39 CLASSIFIEDS........................................................................................... 40 UPCOMING EVENTS & COURSES.................................... 45 MEMBER SERVICES Lauren Baker

SPONSORSHIP / ADVERTISING SALES

Sydney Glen

Amy Puente

PEER REVIEW Cora Edwards E-LEARNING Akesha Brown Emily Trott SEMINARS/CONFERENCES Cyndi Powers Rebecca Zimmerman GROUP LEARNING

SENIOR STAFF Tom Hood, CPA CEO

Krislyn Suljak

Jackie Brown COO

2019–2020 BOARD OF DIRECTORS

Skip Falatko, CPA CFO

Ray Speciale, CPA, Esq. Chair

Bill Sheridan, CAE CCO

Avonette Blanding, CPA, Vice Chair

Rebekah Brown, CPA Director of Development

Lexy Kessler, CPA Secretary/Treasurer

Pam Devine Director of Group Learning & Sales

Samantha Bowling, CPA, CGMA Immediate Past Chair

Mary Beth Halpern Director Technical Services/ Regulatory Affairs

Christine Aspell, CPA

WE WANT TO HEAR FROM YOU! See below to submit content Bill Sheridan | MACPA Dulaney Center II 901 Dulaney Valley Road Suite 800 Towson, MD 21204 FOR CONTENT SUBMISSION: bill@macpa.org feedback@macpa.org TO ADVERTISE IN THE STATEMENT: krislyn@macpa.org P: 410.296.6250 F: 410.296.8713 Toll free: 800.782.2036

Pat Byer, CPA

Dee Sullivan Director of Learning

Laura Dorsey-Shaner

Jeff Cook, CPA, CITP, CIPT, CISA

Debbie Zizwarek Director of Compliance

Chris Dougherty

Tricia Griffis, CPA

Terri Haw

Karen Syrylo, CPA

Jennifer Stevens

RIch Stang, CPA

Statement of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers or members of MACPA.

Ryan Wey

Denise West, CPA, CGMA

The Statement is published four times a year by the Maryland Association of Certified Public Accountants, Inc.

Leon Katznelson, Public Member

Bill Sheridan, Editor Krislyn Suljak, Advertising Sales

Katie Ainsley Natalie Atonakas

SPRING 2020

The MACPA reserves the right to edit all submissions for grammatical style and / or length.

1

CHAIR’S COLUMN The power of relationships, connections, and associations is greater than ever

BY RAY SPECIALE, ESQ., CPA / ASSOCIATE PROFESSOR, MOUNT ST. MARY’S UNIVERSITY I’ll start this column the same way so many conversations begin these days — with three simple words.

How are you?

I hope you, your teams, and your families are safe and well. Not everyone who reads this will be, I’m sure, and for those who are ill, I offer my heartfelt best wishes for a speedy recovery.

These are extraordinary times, and we all have so many questions. When will this end? How will our homes and offices and lives change as a result of this experience?

What comes next from a legislative and regulatory perspective? What lessons will we have learned?

Few of us know all the answers.

But I do know this: Even as we shelter in place, isolated and socially distant, the power of relationships, connections, and associations has never been greater.

me proud to be a member of the MACPA.” Another, John Burns, said, “I must pay my highest compliments to you and the MACPA for the tour-de-force performance that was the COVID-19 Townhall. Technology is truly indistinguishable from magic when it works and MACPA made it work today.”

That’s why the MACPA is here: To figure out what we can be certain about amid all of this uncertainty.

“The best feedback was that 99 percent of attendees said the MACPA is doing a ‘very good’ to ‘excellent’ job of handling and communicating the COVID-19 crisis,” Hood said. “Our next challenge is to continue our advocacy efforts and to provide more resources to our members about the federal and state COVID-19 relief resources.”

We saw evidence of that on March 30.

And I’m glad Tom brought up advocacy, because before COVID-19 took complete hold, the power of relationships, connections, and associations was on full display in Annapolis.

MACPA President and CEO Tom Hood normally holds a series of live professional issues updates each fall and spring throughout Maryland, but the deadly spread of COVID-19 forced the MACPA to hold the first of its spring 2020 meetings virtually.

Maryland’s General Assembly was one of the early victims of COVID-19: Out of concerns over the spread of the virus, the 2020 legislative session ended nearly three weeks early on March 18 — the first time the session ended early since the Civil War.

MACPA members logged on by the hundreds to take advantage of the online format. The meeting drew more than 450 attendees and guided members through issues like leadership in crisis, managing stress, business continuity, the latest updates on regulatory and legislative changes, and how MACPA members can stay connected throughout the crisis.

Before they left Annapolis, though, lawmakers rifled through an astounding 4,000-plus proposed bills, passing more than 650 in a final three-day sprint before adjourning.

And members weren’t shy about offering their views of how the coronavirus has impacted their businesses, employees, and clients — and the impact the MACPA is having in helping them navigate this crisis.

“You consistently support your members and provide a much-needed support group, guiding us in the direction we need to not only survive this pandemic but to strive during and after this crisis,” said one MACPA member, Debbie Fields. “It makes

2

The highlight of the session was undoubtedly the defeat of House Bill 1628, titled “Sales and Use Tax — Rate Reduction and Services.” Introduced by House Majority Leader Eric Luedtke, the bill would have reduced Maryland’s sales tax rate but expanded it to professional services (like those that CPAs provide) to help pay for the Kirwan Commission’s recommended revisions to Maryland’s public education system.

But then Maryland businesses — and our CPA profession — took action. There’s a reason why we spend so much time and energy on legislative advocacy. Simply put, it works.

On March 2, the MACPA helped form a coalition of Maryland business organizations led by the Maryland Chamber of Commerce and the National Federation of Independent Businesses that included the Maryland Bar Association, and groups representing engineers, architects, and many other professions — to present a united front against this effort to tax almost all services in the state.

The coalition held a press conference first, then marched into a House Ways and Means Committee hearing to testify against the proposed bill. One hundred and twelve individuals and 30 business associations were scheduled to testify. Among the MACPA volunteers who testified were President and CEO Tom Hood; Avonette Blanding, CFO of Maritime Applied Physics Corporation in Baltimore; and Jeff Lawson, a partner with Stoy Malone in Towson. Ed Ben and Sandra Glock, both members of the MACPA’s State Tax Committee, testified as part of other panels at the hearing as well.

In the end, our voices were heard. The bill was killed unanimously, in a victory for legislative advocacy everywhere.

Later, the General Assembly tried to shoehorn business management services into a bill that would have subjected so-called “luxury taxes” to sales tax on services. ”We did a lot of behind-the-scenes work with that committee to say, ‘Don’t put that in,’” Hood said. “The bill passed, but without that amendment, so (CPAs) are safe from that perspective.”

That’s your association at work.

We’re here to keep you informed. To offer resources that will keep you and your teams safe and well. To protect your license from bad legislation. And we will continue to do that, virus be damned.

That’s the power of relationships. Of connection. Of association. And that’s why we’re here. We’ve got your back. That’s our job.

Your job is to stay healthy, to stay home, and to stay extraordinary.

Your teams and your clients deserve nothing less.

STATEMENT

STRATEGIC LEARNING POWERED BY

ANTICIPATORY LEADER MEMBERSHIP

— WITH DAN BURRUS

Profit from Disruptive Change Now The Anticipatory Leader Membership is a results-driven online experience that will quickly help you and your team master the art of anticipatory thinking.

The Anticipatory Leader Membership Includes

THE ANTICIPATORY LEADER SYSTEM

LIVE ACCESS TO DANIEL BURRUS EACH MONTH

ANTICIPATORY LEADER CERTIFICATION

28 cutting-edge video lessons by Daniel Burrus. Each video is 3-5 minutes long and focuses on a single Anticipatory concept. Our Rapid Application exercises help you put each concept into action immediately!

Live monthly access to Daniel Burrus as he leads a private Deep Dive training session with Anticipatory Leader members covering the latest in technology & innovation. By signing up today, you qualify for this amazing bonus!

Certification provides proof of a serious competitive advantage that even seasoned business leaders lack. This is a powerful tool for leaders, emerging leaders, managers, planners and sales teams.

Monthly or Annual Pricing $ 8 0 M O N T H LY — Billed monthly. Cancel anytime.

$ 7 5 0 A N N U A L LY — Save over $210 per year! That’s 2 months free!

Access Now at blionline.org/alaf

In uncertain times, you have more control than you realize B Y D A N I E L B U RRU S Traditionally, when an individual or organization fears change, it has something to do with digital technology disrupting their status quo. Will something autonomous replace my job? What if something is created that puts me completely out of business?

Aside from digital transformation, another wave of fear comes from new, fast-moving competition and the threat of loss of relevance and market share.

I have discussed at length these fears and many more, and how to become more anticipatory, paying attention to the Hard Trends that are shaping the future both inside and outside of your industry, and how to see disruption and change before they strike, and most importantly identify and act on the opportunities they represent.

Few would have thought that in the early stages of 2020, our economy would be in a downturn, we would be instantly converted to remote work or, unfortunately for some, laid off, and we would be quarantined to our homes due to a global pandemic.

REAL-WORLD DYSTOPIA Whether you’re in business or not, ever since the Great Recession about a decade ago it seems the majority of individuals will not

4

admit to their tendency to sleep with one eye open on the economy. This “hope for the best but expect the worst” attitude can be useful, but it can also be dangerous, both for your health and well-being, and your entrepreneurial ability to see and act on the many new opportunities disruptive change presents.

Unfortunately, the COVID-19 pandemic has, to a great extent, suppressed our positive, innovative mentality as a species, and has sent many of us into a primordial tailspin of trying to get back to the way things were — the status quo. Due to fear, we are finding ourselves in a real-world dystopian society, where individuals buy in bulk unnecessarily, prepping for the end of the world.

The pandemic will end and we will recover to another new version of normal. What if we made the new post-pandemic normal much better than what we had before? Is that possible?

It sure is, if we get past fear and reacting to the next disruptive problem and become anticipatory, using the power of disruptive change to create a better tomorrow for all.

Keep in mind that while times are highly uncertain in an all-encompassing way, this global disruption on a massive scale is also creating new ways to have a positive, significant impact on the present and the future.

STATEMENT

GOING REMOTE, NO MATTER WHO A global pandemic, shutdown, and quarantine are very similar to digital disruption: They know no boundaries and will disrupt every industry there is. However, what this pandemic disruption is showing us is that many organizations are quickly shifting to reposition their workforce to new roles or remote roles by digitally banding together and working efficiently from a distance.

It is easy to consider going remote when you have a desk job or a career that is already rooted in flex-time industries. However, what about those that don’t have it as easy?

Virtual reality and augmented reality (VR and AR) are two technologies that have started gaining traction in recent years, given the exponential changes of the Three Digital Accelerators of bandwidth, computing power, and processing power that I have discussed since the early 1980s. Now more than ever, we can see industries — which ordinarily are unable to go remote because they were based on the need for a customer to be physically present — figure out ways to provide a remote customer experience.

An incredibly outside-the-box example can be found by way of museums, zoos, and even theme parks going remote, as discussed in a recent Insider article. Monterey Bay Aquarium and even Walt Disney World have gone remote using live-streaming video and a form of virtual reality applications like Google Street View, so guests having to cancel their vacation can still “walk through” Disney World with their families for something to do.

If Walt Disney World, an in-person entertainment giant with visceral experiences, can find a way to go remote, imagine the remote possibilities in several other industries around the world.

INNOVATION IS NEEDED MORE THAN EVER While our worlds may seem to be in a period of indefinite stasis, the world and peoples’ needs don’t stop. A Hard Trend most people take for granted is that there are more than 500 cycles that continue, such as the sun setting tonight and rising tomorrow, the stock market going down and going up, and the pandemic beginning and ending.

If you have followed my writings, you know that I want us all to become positive disruptors, creating the disruptions that need to happen in order to make the world a better place for all.

Being a disruptor during times like these might sound contrary to what people want. However, when you’re a positive disruptor, you choose significance over success, focusing much less on you and what you have done, and more on what you can do for others in a significant way.

When you look for ways to elevate your significance in times like these, you can find new ways to change your community, your state, your nation and, if you think big enough, even the world for the better. I can’t think of a more needed time than right now. Ask yourself: What can you and your organization do now that would have a significant impact on others?

Stop looking at this economic and social slowdown as a time to wallow in the disruption of your status quo. It is also a free pass to

innovate as much as you can! An identifiable Hard Trend based on the science of cycles is that the pandemic will end and the market and economy will bounce back. So in the meantime, focus on the positive difference you can make and what you can disrupt in a positive way — what you can do now to make a difference by helping others. The needs are massive and so are the opportunities to make a significant difference!

When you look for ways to elevate your significance in times like these, you can find new ways to change your community, your state, your nation and, if you think big enough, even the world for the better.

LOOKING FOR OPPORTUNITY IN HELPING OTHERS Consider this: Perhaps your organization has shifted to remote work with ease, whereas a customer of yours in a similar industry is struggling and falling behind. Is there a way to help them now?

What if, in this unusual time of need, you didn’t charge them for the help? Would they remember that generosity in the future?

This pandemic has inadvertently leveled the playing field. Therefore, no one is safe from disruption, and this global disruption is happening a lot faster than digital disruption. We’re all in the same boat, so one major way to innovate is to find ways to help your customers through this in ways that you haven’t thought of before.

You’re thinking too small if you are thinking of offering them a discount on your product or service. It’s better to look at their desperate needs now and ways that help them stay afloat, which in turn might help you stay afloat.

This concept isn’t solely constrained to business and customer relationships. This touches on the topic of thinking about your employees who rely on you. You may be in business as a unified organization, but an employee now working remotely with kids at home and having to now think in terms of profits and losses in their personal life has unmet needs as well that you need to think about and act on. As you work to keep the doors open, what are you doing to take care of your own?

Let’s return to the entertainment industry with an example of the National Basketball Association shutting down during this crisis.

While it is no secret that owners, players, and team affiliates will be financially okay during this situation, the workers at the snack bars, restaurants, and merchandise stores will feel a major financial impact, if they can survive at all. However, many teams have CONTINUED ON PAGE 6

SPRING 2020

5

CONTINUED FROM PAGE 5

stepped up and donated portions of their salaries to cover the losses the service employees will feel while out of work, which in turn incentivizes them to continue to work for the stadiums and gives them a sense of belonging to the organization.

That has already created a positive change throughout the rest of the NBA, as other teams follow suit and help their fellow man and woman when in need. This positive disruption is spreading to other sports faster than any virus!

ANTICIPATION WILL GET YOU THROUGH THIS Hard times will pass, but the Hard Trend in times of complete uncertainty is that a new day will dawn with new opportunities to make a significant difference unfolding with it. There will be a tomorrow, so what are you doing to anticipate, innovate, and seize the opportunity it brings with it? Are you using this pandemic to be a positive disruptor, or will COVID-19 close your business’s doors for good? It doesn’t have to.

As my good friend W. Mitchell, who has been through several major accidents, says; “It’s not what happens to you. It’s what you do about it.” The way I see it, COVID-19 isn’t our biggest problem, it’s what we are doing, or not doing about it. Those of you who have read my latest book, The Anticipatory Organization, know one of my principles is this: Take your biggest problem and skip it. The real problem for your business isn’t the virus, it’s how you are reacting to it. Don’t panic. Focus on defining the real problem

Bookminders

...Focus on the positive difference you can make and what you can disrupt in a positive way — what you can do now to make a difference by helping others. both you and your customers are having and use the certainties found in Hard Trends to reveal a solution.

There will be a future after the pandemic. If you are anticipatory, pre-solving predictable problems before you have them and becoming a positive disruptor creating the transformations that need to happen, you will find the future is bright.

Daniel Burrus is considered one of the world’s leading futurist speakers on global trends and disruptive innovation. The New York Times has referred to him as one of the top three business gurus in highest demand as a speaker.

®

Recommended

by CPAs 443-759-3310 www.bookminders.com

Weekly accounting services for nonprofits and complex small businesses

6

Baltimore – Philadelphia – Pittsburgh

STATEMENT

Some people consider talking about insurance as exhilarating as getting a root canal. The AICPA Professional Liability Program is different. It’s your program—created and presented by subject matter experts in the accounting profession.

Our approach is educational. Consultative. Our goal is to provide CPAs with a satisfying experience when it comes to helping insure their firm, as well as protecting their reputation and livelihood.

Complimentary quote: cpai.com/newlook

Speak with an AICPA Risk Advisor: 1.800.221.3023

SPRING 2020

Aon Insurance Services is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc., a licensed producer in all states (TX 13695); (AR 100106022); in CA & 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 Administrators 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 © 2020 CNA. All rights reserved.

E-13933-420 MD

LOOK AT INSURANCE FROM A NEW PERSPECTIVE

7

AN UPDATE ON

POSTPONED EVENTS Your well being is our top priority. Due to the unprecedented situation with COVID-19, we are busy looking at options to move spring in-person events to virtual and, regretfully, having to postpone others. If you are registered for an upcoming event, you will be notified.

Until further notice, our June conferences and events will be moving forward as planned.

As this situation continues to change, we will provide updates online at macpa.org/covid-19.

Thank you for your patience and understanding.

UPCOMING POSTPONED EVENTS:

Government & Not-For-Profit C O N F E R E N C E

If you have any questions please contact a member of our member services team at (410) 296-6250, by email, team@macpa.org, or our online chat located in the bottom right corner of macpa.org

8

STATEMENT

How to protect your small business from a pandemic and beyond How long a disruption to typical income levels can your small business survive?

What adjustments can one make to continue garnering revenue during an economic slowdown? How serious is this COVID-19 situation? Read on for answers.

B Y C R I S TI N A GA RZ A Note: This article originally appeared in the Accountingprose.com blog. It is reprinted here with permission.

Disclaimer: This article will touch on a serious subject with an occasionally lighthearted tone. It is not our intention to diminish the seriousness of the situation with COVID-19, nor to morbidly capitalize on the fear. Our duty is to prepare businesses for real problems they may face, and our preference is always to use a touch of humor where possible. We have already had multiple clients ask us how to weather what is coming. No matter how serious the health impact ultimately becomes, the economic impact is already showing itself and is only likely to continue.

Running a small business always involves balancing known risks to maximize reward. Day-to-day small business owners have to keep abreast of many momentary and ongoing concerns in order to make profits and grow the business. Sometimes external forces (like, say, a global pandemic or an act of god) come along and add unexpected risks. The likelihood of having a specific plan to navigate a sea of unknown risks is low. In this article, we will outline the crucial importance of accurate bookkeeping; how knowing your numbers can make surviving a surprise state of upheaval possible.

SPRING 2020

Our hope is your business is not affected by the forthcoming second-order impacts of this pandemic. If it is, we hope this information proves useful to your small business. We’ll begin by outlining a roadmap to financial clarity and end with specific information employers need to know for COVID-19 specifically.

Without further ado, let’s dive in!

CONTINUED ON PAGE 10

9

CONTINUED FROM PAGE 9

KNOW YOUR NUMBERS Financial statements tell the story of a business, without any room for fiction or half-truths. More than just black-and-white numbers on a screen, they offer the opportunity to question everything, dig in, and actually understand the root causes of why things work as they do. Financial statements, like the income statement and the balance sheet, are jumping-off points for most successful businesses, useful for understanding important questions, which often start with who, what, where, when, why, and how.

For example, your bookkeeper should help you concretely answer these questions: • Who are my best customers and how can I keep them?

• What caused a spike or dip in my expenses?

• What marketing efforts are working or are not working?

• Where can I trim expenses while maintaining the quality of my products or services?

• When should I begin planning for my busy or slow season?

• Why was (or wasn’t) my company profitable?

• How can I pivot to maintain my relevance or position in the current market?

However, the true magic of clear bookkeeping is not just the ability to look backward. A well-developed chart of accounts and up-todate accounting system can help predict the future. With a savvy bookkeeping setup, you can predict the growth of your organization, plan for seasonality, and, if push comes to shove, determine whether or not you have enough cash on hand to weather an upcoming storm.

PAY ATTENTION TO METRICS THAT MATTER While looking at a big juicy number (like gross revenue) might feel good, diving deeper into your financial metrics is what will really help you gauge performance. On the flip side, if a financial metric or key performance indicator doesn’t inspire action, it isn’t going to help, either. We should begin by first asking, “What is the objective and does this KPI have meaningful business outcomes?”

The goal is to arm our clients with crucially relevant information, not overwhelm them with analysis paralysis.

The questions we hear most often from our clients are: • Am I charging enough for my products or services? (Gross profit margin) • Am I collecting from my customers quickly enough? (Accounts receivable turnover ratio) • What’s my bottom line, and how does it compare to my revenue? (Net profit margin) • What does it take to acquire a customer? (Customer acquisition cost) • What does a customer spend with my company, on average?

(Lifetime customer value) • Are my marketing efforts paying off, or am I sinking money into a black hole? (CAC:LTV) • Can I pay my short-term obligations? (Current ratio) • What will happen if the money stops coming in? How long can I survive? (Runway and burn rate) Gross profit margin (aka GPM), can answer the first question. By looking at your gross revenue and direct costs by revenue stream, you can better determine whether you are likely to see a profit. Let’s

10

pretend you are a marketing agency and are trying to determine if your different service lines are profitable (keep in mind, these are completely made up numbers for illustrative purposes only): SERVICE 1: ADVERTISING SERVICES Description Amount Revenue $50,000 Direct labor $25,000 (the people doing the work) Direct costs $5,000 (what you have to spend to do the work) Gross profit $20,000 If we take the gross revenue ($50,000) minus the direct costs ($30,000), we are left with a gross profit of $20,000. Pretty neat, right?

If we divide the gross profit by the gross revenue, we get the gross profit margin of 40 percent.

SERVICE 2: WEB DESIGN Description Amount Revenue $100,000 Direct labor $75,000 (the people doing the work) Direct costs $15,000 (what you have to spend to do the work) Gross profit $10,000 If we only look at the top line revenue of $100,000 for web design, we might think that we are doing quite well. We can all agree that $100,000 is more than $50,000, right?

However, if we take the gross revenue ($100,000) minus the direct costs ($90,000), we are left with a gross profit of $10,000.

If we divide the gross profit by the gross revenue, we get the gross profit margin of 10 percent.

Well, well, well. How the tables have turned.

Does this mean that you should completely drop web design services? No. It means that you need to investigate why your costs are so high or start looking deeply at your pricing and see if you are underbidding work to get that key client, only to lose out in the end.

Another way to allay any concerns that you are underperforming is to look at industry data, like Bizminer reports, or industry publications to give you a sense of whether or not you are on target.

Luckily for our clients, we can provide Bizminer data as a part of our ongoing bookkeeping engagement.

SHORE UP SAVINGS Another question we often get — especially lately — is, “Are my savings goals and rainy-day fund levels sufficient?”

It depends. It is impossible to know the answer to this question if you do not have an accounting system in place that accurately represents your business. What does this mean?

You need a chart of accounts that accurately represents your business.

This means that if you are a restaurant and you generate revenue from food sales and beverage sales, you need to have an income account for each line of revenue. In addition to this, you need

STATEMENT

A good savings goal would be three times your overhead plus current liabilities. Don’t have this? Don’t panic. If you start by understanding what it actually costs to run your business, you can then start setting aside funds for a rainy day. Baby steps! a cost-of-goods-sold account for both food and beverage costs, so that you can directly relate your revenue to what it takes to sell your food and beverages. If you have one revenue account (often just called “Income” or “Sales”) and one cost-of-goodssold account (or, worse, none), your financials will never be useful.

Period. End of sentence.

Your transactions need to be properly categorized.

This means no lazy accounting and no guessing. Your bookkeeper should have a full understanding of what you do, how you do it, and who your customers are. If you are an attorney who accepts deposits into your trust account, your bookkeeper should not list those deposits as revenue, for example. This would skew your numbers, and can get you into big trouble and put your ability to practice law at risk. So, a seemingly small mistake can have huge ramifications.

Also, if your bookkeeper is entering transactions differently each month, you will not be able to truly gauge what areas of your business need a bit of help. This happens more often with low cost, automated accounting systems, which leave little room for professional judgment or interaction. Why look for a budget bookkeeper when your livelihood is on the line?

To determine this, we will first need to identify your fixed expenses and current liabilities. Fixed expenses (aka overhead) are those costs that do not change depending on the number of units sold or services provided. Fixed expenses are things like rent, insurance, property taxes, and management salaries. Current liabilities are those debts that are coming due in the next one to 12 months.

A good savings goal would be three times your overhead plus current liabilities. Don’t have this? Don’t panic. If you start by understanding what it actually costs to run your business, you can then start setting aside funds for a rainy day. Baby steps!

Another ratio worth knowing is the current ratio. The current ratio is calculated by dividing your current assets, or anything that can be liquidated in the next 12 months, by your current liabilities, or anything that is coming due in the next 12 months.

Example of current assets

Example of current liabilities

Accounts receivable

Accounts payable

Bank accounts

Credit cards

Inventory Prepaid expenses

Deferred revenue Loans / lines of credit

Let’s see how this works: Current assets

Balance

Checking account

$50,000

Savings $15,000 Accounts receivable

$10,000

Inventory $25,000 Total current assets

$100,000

Current liabilities

Balance

Accounts payable

$25,000

To make this simple, let’s look at what is coming due next month for this imaginary yoga studio:

Credit cards

$10,000

Description Amount

Total current liabilities

Sales and wages

$15,000

Payroll taxes

$2,250

Retirement benefits

$450

If we divide $100,000 (total current assets) by $50,000 (total current liabilities), we get two. This means that for every $1 we owe to our creditors, we have $2 to pay them. Generally, a 2-to-1 ratio is desirable, but this varies by industry and even season.

Rent $1,500 Electricity $200 Insurance $100 Credit card

$100

Accounts payable $500 Total $20,100 This means that, no matter what, you will need to have $20,100 available to pay your people, keep the lights on and your doors open, and keep your creditors happy. This doesn’t take into account any expenses related to producing your product, like cost of goods sold, shipping, sales commissions, etc. This is the bare minimum: “What do I need to survive?”

Loans $15,000 $50,000

SECURE A LOAN OR LINE OF CREDIT Has anyone ever jokingly told you, “The best time to get a loan is when you don’t need it”? That is mostly true. Proactively, rather than reactively, looking for credit will serve you when your business needs it the most. Rather than waiting until the last minute to secure a line of credit, build a relationship with a banker when everything is humming along. While it isn’t advisable to depend on credit, it is a great safety net to have when things go sideways. If you have issues with traditional banking (perhaps your business is still relatively new), consider working with an alternative lender like Kabbage.

CONTINUED ON PAGE 13

SPRING 2020

11

PARTICIPATE IN THE 2020 MID-ATLANTIC BENCHMARKING SURVEY!

WHEN IT COMES TO BENEFIT PLANS...

How do you compare?

Where do you want to be?

How do you get there?

As an Exclusive Preferred Provider for the MACPA, we are offering members and their clients (with more than 50 employees) an opportunity to participate in our survey.

Every participant will receive an individual benchmarking report.

CONNECT WITH US 12

PHONE (410) 823-8066 STATEMENT SILBS.COM/BENCHMARKING

CONTINUED FROM PAGE 11

Typically, in order to get qualified for a loan, you will need to have the following information ready: • Income statement (aka profit and loss) • Balance sheet • Income tax return • Business plan • Bank statement • List of key suppliers • List of key customers • Legal documents WORK WITH VENDORS TO EXTEND TERMS If you have a history of on-time and early payments, it may be wise to ask for extended terms, to match your cash flow cycle. This is especially helpful if your accounts receivable terms do not match up with your accounts payable terms.

For example, if you ask your clients to pay their invoice on Net 30 terms and your vendors want to get paid on Net 15 terms, you will have a 15-day gap between when you are paid and when your bills are due. Unless you have sufficient cash on hand, you can quickly run into problems managing your bill payments. This can quickly spiral out of control and harm your relationship with your suppliers — something we want to avoid.

Another option is to ask for early payment discounts to shave a few bucks off of your bill. One example of this is when a vendor offers 2/10, Net 30 terms. This would mean that if you pay your vendor in 10 days instead of 30, they will apply a 2 percent discount. However, keep in mind that if cash on hand is more valuable than a 2 percent discount, this might not be the best option. Your bookkeeper can help you evaluate what the best option is, based on your business.

AUDIT YOUR SUPPLY CHAIN If you manufacture or sell products, it is important to review your supply chain to be sure that they will be able to meet supply demands in any situation. Right now, the United States is bracing for COVID-19, aka the coronavirus, by stocking up on pantry essentials like bottled water, canned goods, and toilet paper. If you own a store that sells these essentials, there is a sudden demand for these goods and your primary vendor is an overseas distributor, you may want to begin looking for alternative suppliers. If shipments are not able to reach the United States or if ports are not operating at full capacity, you may see delays in shipments. Delays in shipments mean lost revenue, lost trust from your clients, and inflated prices. Just as it is important to diversify your investment portfolio, you should have some diversification in your vendor list. You may also want to begin investigating relationships with domestic distributors, so that you can skip the shipment delays and get back to earning revenue quickly.

REVIEW YOUR CUSTOMER LIST When qualifying for a small business loan, the application has one key question: Who are your key customers and what percentage of sales can be attributed to these customers?

They ask this question because they are trying to understand your risk exposure. It is important to know the answer to this question because it will help you to plan for the worst.

For example, if your largest customer is 50 percent of your total revenue and they plan to take their business elsewhere, your business may be at risk of failure unless you have sufficient cash on hand or credit available to keep you afloat until you find customers to replace them. Keeping a healthy mix of clients is important, but unless you can quickly cull that information from your accounting software, you are left guessing.

DIVERSIFY YOUR SERVICE OR PRODUCT OFFERING We all have heard this, but despite its simplicity, it is completely true: Never put all of your eggs in one basket.

Let’s go back to the supply chain audit example. If you own a small store which only sells toilet paper, bottled water, and canned goods and there is suddenly a supply chain squeeze, your business may dry up overnight. Also, if you have an overabundance of something that no one wants, you are in the same situation, except with more debt and less cash on hand. It is important to watch market trends and see what your customer may want in addition to your normal product offering. So, let’s say that you can no longer offer water, toilet paper, and canned goods because your supplier cannot meet consumer demands. Consider offering refillable containers so that your customers can store water on their own, bidets which will eliminate the need for toilet paper, or other non-perishable goods to supplement their pantry.

While these examples are contrived, this can be applied to every single industry.

If you are an advertising agency and want to help a broader customer base, offer pre-recorded online training courses to help shore up your clients’ marketing and advertising skills.

If you offer low-cost graphic design services, offer a premium service for more mature businesses.

If you are an operational efficiency expert, offer a subscription for the tool you built and use to document processes.

Spend some time thinking about what you can do to minimize your risk by creating new revenue streams. Don’t put all of your eggs in one basket.

Spend some time thinking about what you can do to minimize your risk by creating new revenue streams. Don’t put all of your eggs in one basket.

PROTECT YOUR TEAM Do you have an office, showroom, or warehouse that has a lot of foot traffic? Consider investing in a cleaning service that can clean and disinfect high traffic areas more often.

CONTINUED ON PAGE 14

SPRING 2020

13

CONTINUED FROM PAGE 13

If your sales team spends a lot of time shaking hands, offer hand sanitizer, stock up on hand soap, or encourage more fist /elbow bumps. Fist / elbow bumps not only keep you safe(ish) from germs and viruses, but they also make you look super cool.

The CDC offers more detail on how to protect employees. It’s every employer’s responsibility to do what they can to keep their employees safe.

WORK FROM HOME If you run a team that comes into the office to do work that only requires a computer and the Internet, consider adding or expanding your work-from-home policy.

A 2015 study from Stanford University in California found that productivity among call-center employees at Chinese travel agency Ctrip went up by 13 percent when they worked from home due to fewer breaks and more comfortable work environments. At Accountingprose, we have allowed all employees to work from home since 2014 and have been able to successfully find (and retain) amazing employees we would not have found in our local market.

In fact, some of our employees live in remote locations (one lived in a tiny cabin in the mountains of Colorado) and would never want to make the epic commute to our Denver head office. Our clients are also spread around the United States, so they often get the benefit of working with someone in their time zone, even if our head office is on the opposite side of the country.

Before you grow a remote team, it’s important to put a few things in place: Write clearly defined policies: Make sure your employee handbook is clear on what you expect while your team is working remotely. Do they need to have a solid internet connection and be available on Slack? Write it down. Do you have a dress code for video calls with clients? Yep. Add that too.

The benefit of clearly defined policies is two-fold. First, it gives your team clear boundaries, so they know what is expected of them, and second, it gives you peace of mind knowing that boundaries have been set.

Employ the best technology: When we first allowed our team to work remotely, we made a key mistake. We didn’t have the right tech in place to manage our team from a distance. After many years of living the dream, and working remotely, we have set up the ultimate remote work tech stack: • Accounting: Xero • Payroll: Gusto • Project management and client communication: Teamwork • Internal communication: Slack • Internal training: Trainual

14

While this list might not work for everyone, it has served us very well. We no longer have to be in an office with a dedicated server for our accounting software, because we use a cloud-based accounting software. We don’t have to use email or spreadsheets to track projects, because Teamwork does it all. All of our chats are in one spot, rather than hiding in Google or other systems. Finally, we record our new hire training and release updates to our team using Trainual. Find a stack that works for you, and don’t be afraid to shake things up if need be.

Document your processes: What happens if a key employee quits and they take institutional knowledge with them? What happens if you are out sick and your clients need support, but no one else on your team knows how to help them? Do you onboard your new employees the same way, or does each person learn to do their job differently?

Forget new hires, natural disasters, and pandemic. When was the last time you took a vacation?

If the thought of losing a key person, getting sick, or taking time to rest and recharge sounds horrifying to you, then you need to start documenting your processes now. Right now. While you can easily start documenting your process in Google Docs or Word, consider using a tool like Trainual to document everything and make onboarding your new hires fun. Yes … fun!

If this sounds daunting, consider starting on this journey by reading The E-Myth Revisited and Traction, which both brilliantly outline how to get started with process documentation. They are easy reads and pack a ton of value — spend time working on your business, rather than in your business to make a big impact.

IS YOUR SMALL BUSINESS READY TO WEATHER THE STORM? We hope after reading the above you’re feeling more prepared for what’s ahead. We want to encourage not panic, but preparedness.

As conferences, concerts, and other public events continue to be canceled, and millions of people are under quarantine, we’re likely to see things get worse before they get better. Batten down the hatches; hope for sunshine, but have a plan for rainy days. Thank you for reading! We are here to answer any questions you may have.

Cristina Garza is the owner and “chief number cruncher” at Accountingprose, a leading small business bookkeeping and payroll service. She also is a Xero ambassador in the greater Denver area.

Contact her at (303) 928-4126 or cristina@accountingprose.com.

STATEMENT

Invest in your firm and empower your staff.

Accelerate staff productivity through modern investments or technology.

Visit tax.tr.com

Š 2019 Thomson Reuters. All Rights Reserved. TR771428_05-2019_DGM

SPRING 2020

15

Coronavirus: How prepared is your business?

B Y B I L L S H E R IDA N , CA E

The coronavirus has caught everyone’s attention, and not in a good way. A lot of the stuff we’re reading falls somewhere between paranoia and panic. And given the reliability of the “news” we see in our social feeds, that’s not good for anybody.

But reliable, useful, trustworthy sources of information do exist, and one of them is Business Learning Institute thought leader Jennifer Elder.

Elder has compiled a list of questions that business leaders can use to help their organizations prepare for COVID-19’s impact.

Take a look and see if these don’t get your mental wheels turning.

QUESTIONS ABOUT YOUR

EMPLOYEES

1. Will you train your employees on how to identify coronavirus symptoms?

2. If an employee does not have available sick time, how will you make sure they do not come to work if they are sick?

3. How will you respond if an employee is diagnosed with coronavirus?

4. Who can work from home?

5. How will your employees get access to the necessary information and documents they need to work from home?

6. Will you allow employees to travel?

7. If employees must travel, what steps will you take to ensure their medical safety?

8. How will you respond if an employee needs to care for an infected family member?

9. If an employee contracts coronavirus, will they only be allowed to use their accrued sick time?

QUESTIONS ABOUT YOUR

OPERATIONS

1. How will you decide if you need to close an office?

2. Will you close your business for the recommended two-week quarantine or longer?

3. How will you disinfect your office?

4. How will you keep employees, customers, and vendors informed?

5. What parts of your business are crucial to keep operating?

16

QUESTIONS ABOUT YOUR

FINANCES

1. If your offices are closed, how will you collect payments?

2. How long can your business survive without any new sales?

3. How will you pay your bills and payroll if your office is closed?

4. Do you have available lines of credit?

5. Will you pay your employees and for how long if you close your office?

6. If an employee contracts coronavirus, will they only be allowed to use their accrued sick time?

QUESTIONS ABOUT YOUR

CUSTOMERS

1. Will you notify customers if an employee is diagnosed?

2. How will you stay connected to customers if employees are out sick or the office is closed?

3. How will you deliver on contracts if the office is closed or there is a disruption in your supply chain?

4. Do you have a “force majeure” clause in your contracts?

5. How will you respond if a customer is affected by the coronavirus and does not pay your invoice on time?

QUESTIONS ABOUT YOUR

SUPPLY CHAIN

1. Do you currently source any supplies or products from China?

2. How would a delay in delivery of materials and products affect your production?

3. Do you have alternate suppliers?

“This is not an all-encompassing list, but a place to get started thinking about your response,” Elder says. “While you might say, ‘I hope it never happens to me,’ hope is not an effective strategy. The worst time to try and figure out your response is in the middle of a crisis. There are too many pressures, emotions are running high, and no one is thinking clearly. Developing a disaster recovery plan is like buying life insurance: You hope you never have to use it, but if you do, you’re glad you have it.”

WANT TO LEARN MORE? Jennifer Elder has produced a 90-minute, online MACPA webinar titled “Coronavirus: How to Prepare your Business, Employees, and Customers.” You can learn more about how to access the webinar at MACPA.org/coronavirus.

Bill Sheridan, CAE, is editor of The Statement and chief communications officer for the MACPA.

STATEMENT

NOW A VIRTUAL CONFERENCE STRATEGIC LEARNING POWERED BY

BUSINESS LEARNING INSTITUTE #MarylandCPAproud

FORENSIC VALUATION Conference 2020

MAY 8, 2020 | VIRTUAL, INTERACTIVE CONFERENCE | 4-6 CPE CREDITS

Deeper Data Insight.

Greater Strategic Clarity.

The Forensic Valuation Conference serves the niche of CPAs involved or interested in business valuation, litigation support, and forensic accounting. This annual conference features concurrent sessions and content for all levels, from entry-level to experienced professionals. Participants are guaranteed to walk away with practical ideas and applications.

Register Now!

MACPA.ORG/VALUATION

LEADING NATIONAL SPEAKERS WITH A REGIONAL FOCUS

JAMES HITCHNER

CPA/ABV/CFF, ASA

— Business Valuation Update

MARK ZYLA — Fair Value Measurement

Are You an MACPA Member?

Download the Free eBook: The Future of Accounting Technology

Preparing for Artificial Intelligence (AI) and Machine Learning There's a new competitive battleground in public accounting: technology. And it’s not the ordinary tools and software that accountants have depended on for decades. Your ability to compete and win the best clients going forward will depend on how well your firm adapts to artificial intelligence (AI), and machine learning. Is your firm prepared? Or is it living in the past (holding on for dear life to its adding machine tapes and green ledger pads)?

Learn how to: Hire and retain more satisfied employees (pages 2-4) Build an unrivaled team (pages 5-7) Create happier clients (pages 8-10) Build a superior service offering (pages 11-14) Select practical technology (pages 15-17) Address challenges for continued success (pages 18-20) Survive and thrive in an automated world (pages 21-23) And much more!

18

Download the Free eBook Now at www.vic.ai/macpa

STATEMENT

NEWS AND VIEWS Federal, Maryland tax filing deadlines extended to July 15 B Y TH E MA C PA “Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief.

Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004.

“The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issued within 21 days.

Amid the uncertainty and disruptions caused by the coronavirus, taxpayers and tax professionals alike received some welcome news on March 20 when Treasury Secretary Steven Mnuchin announced that the deadline to file federal tax returns has been extended by 90 days, to July 15. That means the deadline for both filing tax returns and paying tax liabilities is now July 15.

Mnuchin made the announcement via Twitter, saying the decision came at the direction of President Donald Trump.

“We are moving Tax Day from April 15 to July 15,” Mnuchin wrote.

“All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”

Mnuchin added a second tweet encouraging “all taxpayers who may have tax refunds to file now to get your money.”

Likewise, Maryland Comptroller Peter Franchot has announced a 90-day extension for both Maryland’s filing and payment deadlines, to align with the federal extensions.

The official IRS announcement of the extensions, which was posted on March 21, reads as follows: “The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.

“Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay selfemployment tax.

SPRING 2020

“‘Even with the filing deadline extended, we urge taxpayers who are owed refunds to file as soon as possible and file electronically,’ said IRS Commissioner Chuck Rettig. ‘Filing electronically with direct deposit is the quickest way to get refunds. Although we are curtailing some operations during this period, the IRS is continuing with mission-critical operations to support the nation, and that includes accepting tax returns and sending refunds. As a federal agency vital to the overall operations of our country, we ask for your personal support, your understanding – and your patience. I’m incredibly proud of our employees as we navigate through numerous different challenges in this very rapidly changing environment.’

“The IRS will continue to monitor issues related to the COVID-19 virus, and updated information will be posted on a special coronavirus page on IRS.gov.

“This announcement comes following the President’s emergency declaration last week pursuant to the Stafford Act. The Stafford Act is a federal law designed to bring an orderly and systematic means of federal natural disaster and emergency assistance for state and local governments in carrying out their responsibilities to aid citizens. It was enacted in 1988.

“Treasury and IRS will issue additional guidance as needed and continue working with Congress, on a bipartisan basis, on legislation to provide further relief to the American people.”

The welcomed announcements came a day after Sen. John Thune, R-SD, introduced legislation calling for a 90-day filing extension.

Maryland Sen. Chris Van Hollen signed on as a co-sponsor to that bill, and the MACPA e-mailed a request to Sen. Ben Cardin to support S. 3535, the “Tax Filing Relief for America” bill. The MACPA also joined the AICPA yesterday in sending a letter to Secretary Mnuchin and copying IRS Commissioner Charles Rettig asking for both payment and filing relief.

Other U.S. states are providing their own tax filing relief for individuals and businesses. The AICPA has compiled the latest developments on state tax filings related to coronavirus. You will find that list at j.mp/taxfilingrelief.

19

NEWS AND VIEWS General Assembly: One extraordinary session, one rousing victory B Y B I L L S H E RIDA N , CA E One of the most extraordinary General Assembly sessions in Maryland history was highlighted by, fittingly, one of the CPA profession’s most rousing victories in recent memory.

Maryland Bar Association, and groups representing engineers, architects, and many other professions — to present a united front against this effort to tax almost all services in the state.

Amid concerns over the rapid spread of COVID-19, Maryland’s legislature adjourned nearly three weeks early on March 18, the first time the state’s legislative session ended early since the Civil War.

The coalition held a press conference first, then marched into a House Ways and Means Committee hearing to testify against the proposed bill. One hundred and twelve individuals and 30 business associations were scheduled to testify.

Among the MACPA volunteers who testified were President and CEO Tom Hood; Avonette Blanding, CFO of Maritime Applied Physics Corporation in Baltimore; and Jeff Lawson, a partner with Stoy Malone in Towson. Ed Ben and Sandra Glock, both members of the MACPA’s State Tax Committee, testified as part of other panels at the hearing as well.

Before they left Annapolis, though, lawmakers rifled through an astounding 4,000-plus proposed bills, passing more than 650 in a final three-day sprint before adjourning.

“We’re still sorting through all of those final bills to see what some of the implications might be,” Maryland Association of CPAs President and CEO Tom Hood told members in a recorded message. “We’ll keep you updated.”

VICTORY OVER SALES TAX ON SERVICES The highlight of the session was undoubtedly the defeat of House Bill 1628, titled “Sales and Use Tax — Rate Reduction and Services.” Introduced by House Majority Leader Eric Luedtke, a Montgomery County Democrat, the bill would have reduced Maryland’s sales tax rate but expanded it to professional services (like those that CPAs provide) to help pay for the Kirwan Commission’s recommended revisions to Maryland’s public education system.

But then Maryland businesses — and our CPA profession — took action. There’s a reason why we spend so much time and energy on legislative advocacy. Simply put, it works.

On March 2, the MACPA helped form a coalition of Maryland business organizations led by the Maryland Chamber of Commerce and the National Federation of Independent Businesses that included the

20

In the end, our voices were heard.

Two days after the press conference and hearing, Del. Luedtke, who introduced the bill, tweeted this: “Given tremendous concern from the public and from small business owners, the Revenues Subcommittee (has) voted unanimously to kill HB 1628, the proposal to expand the sales tax to cover most services.”

It was a victory for legislative advocacy everywhere.

“Everyone who attended CPA Day in Annapolis wrote letters to the (House Ways and Means Committee), which was huge,” Hood said. “All of the major firms wrote letters. And many of our members who live in the districts of the Ways and Means Committee members — some 1,700 of you — wrote letters and e-mails. That mattered a lot.”

ANOTHER VICTORY Sales tax on services wasn’t the MACPA’s only tax-related legislative victory this year.

Shortly after the defeat of HB 1628, the House introduced HB 1354, titled “Sales and Use Tax and Personal Property Tax.” Also known as “the luxury tax,” this bill would have placed business management services among other high-end luxury services that could have been subject to sales and use tax.

“Any services you provide could have been construed to be taxable under that kind of definition,” Hood said.”We did a lot of behind-the-scenes work with that committee to say, ‘Don’t put that in.’ The bill passed, but without that amendment, so (CPAs) are safe from that perspective.”

OTHER ISSUES OF INTEREST In his video to members, Hood offered details of these other bills related to the profession:

“Given tremendous concern from the public and from small business owners, the Revenues Subcommittee (has) voted unanimously to kill HB 1628, the proposal to expand the sales tax to cover most services.”

— TOM HOOD, CPA, CITP, CGMA, PRESIDENT/CEO OF MACPA

STATEMENT

NEWS AND VIEWS • Kirwan reforms: The General Assembly passed the education reforms proposed by the so-called Kirwan Commission, a multi-billion-dollar plan to drastically improve Maryland’s public schools — and which ultimately led to proposals to expand sales taxes to professional services in an effort to help fund those reforms.

• The budget: Lawmakers approved a $47.9 billion state budget that includes $100 million to fight coronavirusrelated emergencies.

• Digital advertising tax: The General Assembly also passed a bid to increase tax rates on cigarettes and other tobacco products. HB 732, titled “Taxation — Tobacco Tax, Sales and Use Tax, and Digital Advertising Gross Revenues Tax,” included an amendment that makes Maryland the first state in the nation to tax digital advertising. That tax includes things like e-mail marketing and social media.

That measure was added to the bill less than 24 hours before the General Assembly closed.

• Income tax-related issues: HB 473, titled “Income Tax — Pass-Through Entities, Throwback Rule, and Combined Reporting,” was ultimately defeated, mainly because of compliance complexities. “We testified against it, we wrote letters against it, and ultimately it did not pass,” Hood said.

• The “Feldman Bill”: Sen. Brian Feldman, a CPA and an MACPA member from Montgomery County, introduced SB 223, titled “Commission on Tax Policy, Reform, and Fairness.”

The proposed commission, which would have included a CPA, would have studied Maryland’s tax system and recommended good tax policies.

Though it did not make the cut in the abbreviated General Assembly session, Hood said, “We’re hoping to have that impact as we go forward.”

PROUD TO DISTRIBUTE $20 MILLION IN CORPORATE DIVIDENDS.

NEW SESSION AT THE END OF MAY? In cutting short its legislative session, the General Assembly held out hopes of reconvening at the end of May, specifically to debate the implications of the coronavirus in Maryland.

“It would be limited in terms of how much we can advocate,” Hood said. “We’ll watch that carefully and try to anticipate things and be prepared, should that happen.”

Bill Sheridan, CAE, is editor of The Statement and chief communications officer of the Maryland Association of CPAs.

More than 20,000 Maryland businesses are receiving a dividend from Chesapeake Employers Insurance in 2018 & 2019 – ten million dollars a year to be paid out over two, consecutive years beginning with July 1, 2018 renewals.

Many of these policyholders are small businesses whose loss ratios prove they have a commitment to workplace safety, preventing injuries, and helping their employees return to work. Financial strength and the potential to earn a corporate dividend, more good reasons you can feel good about recommending Maryland’s largest writer of workers’ compensation insurance.

For more information visit CEIWC.com

SPRING 2020

PROUD TO HAVE EARNED AN A-(EXCELLENT)

FINANCIAL STRENGTH RATING FROM A.M. BEST

21

22

STATEMENT

TAX CORNER Two ways the SECURE Act impacts planning for individuals with special needs B Y SA G E C . HA RT, E SQ .

Parents of a special-needs child may wish to reconsider how to allocate their estate because an individual with disabilities retains the ability to stretch required distributions from inherited retirement accounts over the individual’s life expectancy, whereas most other beneficiaries are required to withdraw the account within 10 years.

Parents face unique challenges when planning for their specialneeds child. Among many concerns, they need to ensure that the inheritance for their special-needs child lasts their child’s lifetime and that there is a trusted individual who is available to manage these funds for their child’s benefit. Many of these parents hold much of their wealth in retirement accounts and thoughtfully plan how their retirement savings will pass upon their death.

Historically, designated beneficiaries of inherited retirement accounts were allowed to stretch out distributions based on the beneficiary’s life expectancy in order to extend the account’s taxdeferred growth. In December 2019, Congress changed the rules governing how beneficiaries must withdraw funds from inherited retirement accounts through the passage of the Setting Every Community Up for Retirement Enhancement (or SECURE) Act. The SECURE Act eliminated the option to stretch withdrawals from an inherited retirement account for most beneficiaries and now requires most beneficiaries to withdraw the entire account within 10 years of the account owner’s death. Five categories of individuals are exempt from this 10-year deadline. The account owner’s spouse and minor children, an individual with a disability or chronic

illness, and an individual who is fewer than 10 years younger than the account owner have slightly different options regarding how to make withdrawals from an inherited retirement account.

Individuals who meet the Act’s definition of disability may spread out their withdrawals from an inherited retirement account over their life expectancy — just as they could pre-SECURE Act. Account holders may also still direct inherited retirement accounts to be paid to a trustee of a trust for the benefit of an individual with disabilities, and if the trust meets certain requirements, the trustee may stretch out the required distributions over the trust beneficiary’s life expectancy.

In addition, the Act goes a bit further and expressly outlines two special rules for a trust for the benefit of an individual with disabilities that facilitate the stretching of withdrawals over the beneficiary’s life expectancy.

In response to the exceptions carved out for individuals with disabilities in the SECURE Act, parents of a special-needs child should reevaluate how they have structured their estate plan in order to avoid taxes where possible and preserve their life savings for their surviving family members. In doing so, they may consider whether they can meet their planning goals by directing inherited retirement accounts to a trustee of a trust for the benefit of a special-needs child and then leave other types of assets to their adult children without disabilities.

CONTINUED ON PAGE 24

SPRING 2020

23

TAX CORNER CONTINUED FROM PAGE 23

“KIDDIE TAX” The SECURE Act returns the “Kiddie Tax” to its pre-2018 rules, with the result that many minors will pay taxes on unearned income at a lower rate than the past two years. “Kiddie Tax” refers to the law requiring a minor’s unearned income be taxed at the rate used by the minor’s parents if the parents’ tax rate is higher than the minor’s rate. The 2017 Tax Cuts and Jobs Act changed the “Kiddie Tax” by taxing a minor’s unearned income according to the tax brackets used for estates and trusts.

The SECURE Act reverses the 2017 Tax Cuts and Jobs Act so that once again a minor’s unearned income is taxed at the rate used by the minor’s parents. In addition, the Act further permits minors who were affected to amend their prior returns.

For purposes of reporting taxes, these trusts are considered grantor trusts, with the result that any income generated by the trust is passed onto the minor’s individual tax return. Under the rules of the 2017 Tax Cuts and Jobs Act, minor beneficiaries were often paying taxes at a high rate because their trusts generated enough income to necessitate paying taxes at the highest brackets of the estates and trust tax schedule. Now that the SECURE Act returns the “Kiddie Tax” to the version of the prior law, these minor beneficiaries will likely pay taxes at a lower rate and retain their savings in trust for their extensive needs and support.

Sage C. Hart, Esq., is an attorney with O’Byrne Law, LLC, in Timonium. Her contact information is found at ObyrneLawOffice.com.

The status of the “Kiddie Tax” is important for minors who are beneficiaries of first-party special needs trusts. These trusts are often funded with large personal injury or medical malpractice settlements.

STARTING your practice?

GROWING your practice?

SELLING your practice?

$1 Billion+ in Deals Closed Whatever stage you’re in...

Our Best-in-class Brokers will help you achieve YOUR goal!

Bradley Holmes 24

Bradley@APS.net

800-397-0249 www.APS.net

STATEMENT

Put them to work for your business with Botkeeper!

Botkeeper automates data entry and common bookkeeping workflows through the use of software bots. Harnessing the power of AI, machine learning, and skilled human accountants, the bots flow information into a company's accounting software from their other systems and accounts for a truly automated 24/7 bookkeeping system.

Cuts your bookkeeping time and costs in half

Increases reliability and accuracy

Connects securely to your bank and other financial accounts

Provides real-time reports and dashboards

Better than humans, better than machines.

Automated bookkeeping with a human touch.

SPRING 2020 179 South Street, 2nd Floor | Boston, MA 02111 | 800-388-3323 | www.botkeeper.com

25

www.botkeeper.com /MACPA

Bring SPF.

Take CPE.

2020

JUNE 23-26, 2020

Ocean City, MD | Up to 24 CPE credits CUSTOMIZE YOUR AGENDA Take as many (or few) sessions as you’d like each day!

EMERGING LEADERS

C O M P L I M E N TA R Y M A C PA # F U T U R E R E A D Y

TRACK FOR YOUNG PROFESSIONALS

LEARNING LABS

Young Professionals sign up for a full day of enhancing your leadership skills.

Back by Popular Demand! Series of TED talks that will kick off our 2020 Annual Beach Retreat this year!

Thursday, June 25 | CPE: 7

Part 1: June 23 at 1:00-2:45pm | CPE: 2 Part 2: June 23 at 3:00-4:45pm | CPE: 2

S A M E G R E AT L O C AT I O N

Princess Royale Oceanfront Resort Stay in family-friendly oceanfront suite accommodations, including kitchenette and a spacious two-room setup.

MACPA.ORG/BEACHRETREAT #BeachCPE | Group registration discounts apply.

STRATEGIC LEARNING POWERED BY

BUSINESS LEARNING INSTITUTE #MarylandCPAproud

BUSINESS AND INDUSTRY Strategies for finding a good manager to work for Job satisfaction depends largely on the quality of your manager, so doing homework on potential supervisors is vital Editor’s note: This article first appeared in Financial Management magazine. For more articles, sign up for the daily email update CGMA Advantage at http://bit.ly/2svn2AY.

B Y H A N NA H PITSTICK FORMS GENUINE RELATIONSHIPS WITH EMPLOYEES The best managers will connect with their employees and demonstrate genuine care and respect.

That sort of connection isn’t formed through a one-on-one held once a week where you go through a tick-box exercise, but rather by asking what’s going on in their lives and being aware when an employee might need some extra support.

When looking for a new job or transfer, employees have several variables to consider, including salary, promotion potential, and job responsibilities. But if they hope to thrive in a new workplace, they should make sure the job comes with a good manager.

Research has backed up the claim that people leave managers, not companies.

This includes a 2015 Gallup study of 7,272 U.S. adults that found 50 percent of employees left their job “to get away from their manager to improve their overall life at some point in their career.”

Significant research has been conducted to get to the bottom of what makes a good manager, but the traits of a good manager are not so different from the traits of an empathetic person.

“What employees are looking for in a manager is the same anyone would be looking for in a good human being,” said Bernard Marr, an author and consultant based in Milton Keynes, England. “People want fairness, respect, and recognition. They want someone who listens and is a good and

consistent communicator, someone who supports, sets a clear vision and expectations, challenges and inspires people, and creates a no-blame culture.”

Because management is such a crucial variable in job satisfaction, it is wise to research and vet the managers at companies you’re hoping to work for, just as they vet their prospective employees. It may take a few phone calls and some internet sleuthing to find the right sources, but a little due diligence on your part can boost your chances of career fulfilment.

Don’t be afraid to tap your network and online resources such as LinkedIn, Indeed, and others to help answer the question: Will this manager help make me a happier, more empowered employee? Once you’ve done that, use the interview process to see if your values align with a potential manager’s values.

Here are a few traits to look for and tips on how to spot them when trying to determine if someone will be a good manager to work for.

“It’s more the informal, sit-down with a cup of coffee, and discuss where you are at and where you would like to grow,” said Teresa Kruger, Ph.D., senior manager, People and Business Solutions for BDO South Africa, based in Johannesburg, South Africa. “I think that has a lot more value than any formal structures.”

During the job interview process, you might get a hint of how your potential boss views the employee-manager relationship by taking note of whether they seem curious about you as a person. Do they ask you anything other than directly workrelated questions? If you ask about their life or background, do they get uncomfortable or annoyed? Depending on the type of boss you prefer, it may be a red flag if they show little interest in you other than your potential work output.

RECOGNISES STRENGTHS AND EMPOWERS EMPLOYEES TO USE THEM A good manager will keep you engaged, and less likely to leave a company, by providing growth opportunities and encouraging you to learn from projects you have ownership in.

CONTINUED ON PAGE 28

SPRING 2020

27

BUSINESS AND INDUSTRY CONTINUED FROM PAGE 27

If the potential for growth is important to you, ask during the interview about what opportunities employees have for skill building at the company and how often they are allowed to work on a project with minimal oversight.

“I think micromanagement was out of the window long ago,” Kruger said. “It’s definitely more about a coaching and mentoring type of relationship between employee and manager and allowing the scope and opportunity to grow.”

Employees want to be utilized in a manner that highlights all their strengths, she added, and managers can facilitate that by figuring out what those skills are and thoughtfully placing employees on projects they are best suited for.

Talk to current and past employees of the company about their career trajectories.

If you find stagnated employees stuck in long-term positions without gaining new responsibilities or skills, it could be a sign management is not empowering them.

FOSTERS HONESTY AND VULNERABILITY Managers can create a healthy, trusting environment by letting employees know that everyone can be vulnerable. How a potential manager reacts to your answers about your shortcomings and areas you want to grow in can be a gauge of whether your potential boss practises and encourages vulnerability and honesty.

“Being vulnerable doesn’t mean they’re weak, but it does mean they can be open about their shortcomings and they’re not going to be attacked for it — they’re going to be supported in them,” said Drew Dudley, founder of Day One Leadership, a Toronto-based leadership coaching organisation.

“A manager makes that clear by demonstrating it, by being open about the things they’re not good at or the things they need help with, and it gives permission to the employees to do the same thing. Then what happens is people aren’t spending their energy covering up the things they’re afraid of or bad at. They’re spending their energy doing their best work.”

28

“A good manager is someone who is clear, who listens, and they’re not just always telling, but understanding what it is their people need...”— BOB HEWES, PH.D. If it seems appropriate, ask about ways a potential manager is planning to improve the company or employee morale to see how they discuss weaknesses or areas that could use improvement. It’s a good sign if they look at vulnerabilities as a starting point for potentially exciting growth rather than blemishes that need to be covered up.

MAINTAINS CONSISTENCY AND FAIRNESS Dudley maintains that along with vulnerability, consistency is necessary to create an environment of trust.

“Consistency means the employees know that the manager has a set of clear criteria for decision-making, which means no matter what the decision, they’re going to make it using the same criteria every time,” Dudley said.

Consistency is essential when it comes to how managers deal with delivering criticism and discipline.

“If I come late, I’m going to be dealt with in a certain way, but if someone else comes late and they don’t get the same treatment, obviously I’m going to start thinking, ‘Hang on, there’s something wrong here,’ and that’s where a lot of managers lose that credibility,” Kruger said.

The best way to figure out whether a potential boss is consistent is by speaking with past and current employees, if possible.

During the interview process you could ask your potential boss about company policies that are important to you. Then you could verify those answers with past or present employees to see if the responses match up with the reality of how the boss handles various situations.

PROMOTES CLEAR COMMUNICATION Saving perhaps the most obvious for last, good managers need to maintain clear and effective communication.

“A good manager is someone who is clear, who listens, and they’re not just always telling, but understanding what it is their people need,” said Bob Hewes, Ph.D., senior partner at Camden Consulting Group based in Boston. “When a supervisor becomes a thought partner with you, you can get the job done more effectively, not just efficiently.”

A potential manager’s communication skills can at least partially be revealed during the interview process. Do they maintain eye contact? Do they seem genuinely curious about what you’re saying? Are they asking questions about areas that are important to you? And do they comprehend and enthusiastically answer any questions you have for them?

Beyond being an effective listener, good managers make an effort to look past behavior to the underlying cause and address problems with empathy.

“People leave because of managers, that’s what the data says, but I always point out to managers that at the foundation of any individual or organizational dysfunction, there is a fear,” Dudley said. “People are afraid that they’re going to have something taken away (money, a job, influence, respect) or they’re afraid they’re going to have something given to them they don’t want (more work, a task they’re not equipped for), and when you deal with issues at the level of the fear that generates them, rather than the behaviour that emerges, you’re always going to be better off.”

Hannah Pitstick is a freelance writer based in the U.S. To comment on this article or to suggest an idea for another article, contact Drew Adamek, an FM magazine senior editor, at Andrew.Adamek@aicpa-cima.com. © 2018 Association of International Certified Professional Accountants. All rights reserved.

STATEMENT

SPRING 2020

29

CPE anywhere you are.

E - L E ARNING O P P OR TU N ITIES FR O M MA CPA MACPA’s e-learning options bring you high-quality learning in a convenient, online format.

All of our online courses are developed by our roster of nationally-recognized instructors.

WEBCASTS/WEBINARS

Watch our most popular sessions (video or audio-only) from your home or office

SIMULCASTS

Join us virtually at our biggest events

ON-DEMAND

Sharpen your skills anytime, anywhere

NANO LEARNING

(Coming Soon!)

Small but mighty 10-minute chunks of content. A great option for a quick topic refresher or to answer a problem.

Find your next online course at MACPA.org 30

BUYING FOR YOUR TEAM? STATEMENT Contact our Group Sales Department to learn more about our special group pricing and service options.

DIVERSITY AND INCLUSION How firms can advance women in the workplace An AICPA survey finds which initiatives are most effective Note: This article originally appeared in the Journal of Accountancy. ©2020 Association of International Certified Professional Accountants. Reprinted by permission.

B Y A NI TA D E NN IS

Firms are taking proactive steps to attract, retain, and advance women, according to the AICPA’s 2019 CPA Firm Gender Survey.

And firms that use modified work arrangements (MWAs) and formal advancement programs to achieve those goals report that the benefits are clear.

Among other findings, the survey revealed that the vast majority of firms (94 percent) offered some form of MWA, such as flex time, reduced hours, or telecommuting, and that MWAs were considered effective attraction and retention tools. The survey also showed that half (50 percent) of firms had partners who used MWAs, and 62 percent of these partners had been on MWAs before becoming partner.

“We’re seeing MWAs become a viable option for people at all levels,” said Jacquelyn H. Tracy, CPA, CGMA, chair of the AICPA Women’s Initiatives Executive Committee, which conducted the survey, and a partner at Mandel & Tracy LLC in Providence, R.I. “It’s helping us keep great people in the profession. It’s a big bang for virtually no bucks.”

Tracy said her practice has two partners — herself and another woman — and they SPRING 2020

both use their own form of MWA. They work long hours during busy season, then each works three to four days a week the rest of the year.

because “people want to be valued,” Tracy said. Furthermore, they’re more likely to get burned out or leave for a better offer if they are not paid fairly, she said.

Respondents also generally ranked formal advancement programs such as mentoring and sponsorship programs as very beneficial in terms of attraction, retention, and advancement, but the survey found that not all firms had embraced these initiatives yet. Tracy suggested that firm leaders with reservations about starting these programs focus on the benefits they offer.

“We’re moving in a positive direction,” Tracy said. She recommended that firms involve staff at all levels in any gender initiative to ensure engagement in and acceptance of the program and so that the initiative can benefit from a range of perspectives.

Firms that focus on gender diversity initiatives see tangible advantages, including enhanced attraction and retention of highquality people, Tracy said. “Staff at entry

She also encouraged firms to match their people with assignments that can help them excel. “We tend to think that people come fully formed,” she said. “But we need to see their strengths and weaknesses and determine what they need in order to grow and advance.”

We tend to think that people come fully formed, but we need to see their strengths and weaknesses and determine what they need in order to grow and advance.”

— JACQUELYN H. TRACY, CPA, CGMA

and middle levels will see more people like them and realize they can aspire to leadership roles,” she said. These initiatives “also demonstrate how firms continue to prosper even as new faces move into leadership and as firms adopt policies to allow flexibility for all their people.”

In another finding, nearly 40 percent of firms are monitoring gender pay parity, according to the survey, and 85 percent of those firms report they are addressing any disparities they find. That’s important

Download the survey here You can download the AICPA’s 2019 CPA Firm Gender Survey in its entirety at j.mp/JofAWomen.

Anita Dennis is a New Jersey-based freelance writer.

31

Are you looking at

CAS all wrong?

So much of the discussion around Client Accounting Services has focused on which specific services you choose to provide – from bill payment and AP/AR to financial statements and outsourced CFO. But we believe this definition of CAS is limited in scope and usefulness. Let’s frame it better: You’re a true practitioner of CAS if you’re able to customize your accounting practice for each client based on their needs, while maximizing your firm’s profits.

In other words, if you want CAS to be a win-win, your firm needs to focus more on the needs of the “client” and less on the specific “accounting services”. To do that confidently, you need the right clients, processes and solutions partners.

AccountantsWorld is here to help.

In our free CAS Guide, you’ll learn: 4 Four common myths about CAS 4 How to classify your clients into three categories based on their true needs, and optimize your processes for each category 4 How to present CAS to your clients to best set expectations and create a long-term service partnership 4 The keys to sustaining profitability from CAS

If you’re a trusted advisor to your clients and want to be properly rewarded for that commitment, it’s time to get CAS right.

Download our free CAS Guide at AccountantsWorld.com/MD Preferred Accounting Software Provider,

32

STATEMENT

TECHNOLOGY 4 accounting technology trends for 2020 B Y MA R C STA U T ness leadership than they did just a few years ago. Communication and culture are crucial for driving innovation to gain a competitive advantage in an increasingly commoditized profession. CIOs need to know how to lead and educate others on how to leverage technology in alignment with the firm’s strategic plan.

DATA STRATEGY UNLOCKS TRANSFORMATION The researchers at Forrester believe data strategy is necessary for unlocking digital transformation and taking advantage of A.I. and machine learning. However, getting data prepped to use with these emerging technologies is a problem for many organizations.

It requires investment in technology, talent, and process.

As the cost of getting data wrong becomes more apparent, Forrester says data literacy will become a priority across the organization – not just in IT. They predict 40 percent of organizations will launch data literacy programs for all team members.

My take: CPA firms are a treasure trove of data and have been for years. The key is getting the data organized and accurate. The difference now is that there are more tools available to help firms leverage their data and turn it into actionable advice. Firms of all sizes must learn about the new tools available today. In most firms, this is a journey that’s already started. It will be difficult (but not impossible) for the others to catch up with those that already have the mindsets and are experimenting and acquiring the skill sets to use the technology.

Forrester recently released its Predictions 2020 report, sharing forecasts for the trends leaders can capitalize on as 2020 rolls on.

A number of their predictions caught my eye, as they mirror much of the advice we’ve been providing to accounting firm leaders over the years.

Here’s a look at some of the predictions that stood out to me, and my take on how it impacts accounting firms.

CIOs FOCUS ON PEOPLE Forrester predicts an increasing focus on people management for CIOs in the coming year. More highly standardized and repetitive IT tasks are automated, but they’re not expecting layoffs. Instead, CIOs will focus on upskilling their staff to handle higher-level work.

Outside of the IT department, Forrester predicts that smart CIOs will become a resource to other departments that need help working with emerging technologies, including robotic process automation, artificial intelligence, blockchain, and machine learning.

My take: We’ve long said the role of CIO at top-performing firms extends beyond IT. CIOs today are spending more time on busi-

DATA AND A.I. GET WEAPONIZED CPA firms have long been a prime target for data breaches due to the amount of data they possess, but Forrester predicts more — and more sophisticated — attempts to hack organizations’ data in the coming year.

“The unfortunate reality will come to light that evil forces can adopt technologies such as AI and machine learning faster than security leaders can,” the report states.

They predict ransomware incidents will grow as attackers learn that holding data hostage is a quicker path to monetizing their work. And A.I. will allow criminals to get more sophisticated in their attacks, leveraging deepfakes to fool technology users, and costing businesses over a quarter of a billion dollars.

My take: Every firm needs a well-planned, well-executed security policy that balances user needs and security requirements. Your people can be your weakest link or your best protection against an attack. Approach security training as an opportunity rather than dismissing it as just another technology project. It’s a chance to learn where the pain points are and meet the challenge head-on by finding solutions that make navigating security less complicated while still protecting the firm.

CONTINUED ON PAGE 34

SPRING 2020

33

TECHNOLOGY CONTINUED FROM PAGE 33

AUTOMATION RESHAPES THE WORKFORCE Forrester predicts automation will replace 1.06 million jobs in 2020. However, those jobs will primarily be lower-level, functionspecific workers. Jobs that require “intuition, empathy, and physical and mental agility” will add 331,500 net jobs in 2020.

They also caution that employees are wary of automation – mainly because few organizations have invested in preparing their people to work alongside automation.

My take: For years, we’ve said accounting jobs won’t necessarily be eliminated. But they will be refined with new skills needed as technology plays a complementary role, making them faster, more efficient and more productive. But your people need to know that you hear the same scary predictions about job loss, that you understand the changes that are coming, and have a plan for the future.

The accounting profession will face many challenges in 2020, but there is also a lot of potential. By keeping an eye on forecasts for the year ahead, you can act now to leverage these trends and positively impact your firm and the opportunities they will create in the marketplace.

Approach security training as an opportunity rather than dismissing it as just another technology project. It’s a chance to learn where the pain points are and meet the challenge head-on by finding solutions that make navigating security less complicated while still protecting the firm.

Marc Staut is chief innovation and technology officer for Boomer Consulting.

There are no such things as small legacies. Everything we do has an impact.

At Howard Bank, our legacy can be seen in the neighborhoods and businesses we support.

But most importantly, it’s a reflection of who we are and the customers we serve.

We34 care about here.

howardbank.com

STATEMENT

Technical Learning Accounting DEVELOP Accounting (Governmental) YOUR Auditing AuditingBEST (Governmental) Business Law TEAM. Economics Every course in the Business Learning Institute Course Catalog can be customized for your Finance organization and brought on-site to your office.

Information Technology Management Services Regulatory Ethics Specialized Knowledge BLI instructors are known for their expert knowledge (each teaches his or her own curriculum), and also for their engaging and collaborative teaching styles and methodology. BLI is the future of learning.

GOOD STAFF TRAINING ISN’T BORING.

Strategic learning to move careers forward.

Learning in all of the NASBA Fields of Study:

Technical Learning Accounting Accounting (Governmental) Auditing Auditing (Governmental) Business Law Economics Finance Information Technology Management Services Regulatory Ethics Specialized SPRING 2020 Knowledge

Statistics Taxes Non-Technical Learning Behavioral Ethics Business Management & Organization Communications and Marketing Computer Software Applications Personal Development Personnel/Human Resources Production

See the full course catalog online at

BLIonline.org/catalog Contact Pam Devine at 443.632.2321 to schedule your on-site training.

35

FINANCIAL PLANNING MACPA’s 34th annual PFP Conference provides expansive planning perspective B Y SE T H H A M M E R, CPA , P H. D. example of a cognitive bias that may undermine performance for individual investors is “loss aversion,” whereby investors weigh losses much more heavily than gains. A consequence of risk aversion is that investors who frequently check on their investments’ performance may feel more compelled, from a behavioral perspective, to engage in selling transactions than those who take a longer term view.

The MACPA’s 34th annual PFP Conference addressed a wide range of planning issues, ranging from more traditional financial issues, such as increasing asset protection through the use of trusts, to broader behavioral issues impacting financial decision making, such as heuristics and cognitive biases.

This article provides some highlights from that conference.

TRUSTS IN PLANNING In a presentation titled “Why Every Taxpayer Should Include Trusts in Planning,” Steven Siegel addressed how these instruments can be used to achieve a variety of client objectives, including asset protection, avoidance of probate, elder protection, and educational funding. He noted that due to the increased estate tax exemption following the Tax Cuts and Jobs Act of 2017, practitioners may expect to find a lessening of demand for those instruments providing targeted estate tax savings techniques, such as unified credit shelter bypass trusts.

He also noted, however, that in other areas such as asset protection, demand may be increasing as more taxpayers grow potentially larger pools of assets subject to potential litigation (e.g., health care pro-

36

viders’ assets at risk). Further, he stressed that with the enactment of the TCJA, it is critically important that advisers and clients review formulas of any pre-Act trust agreements to ensure that such provisions can still be expected to achieve their intended objectives.

COGNITIVE BIASES AND HEURISTICS IN INVESTING Christian Newton, regional director and vice president of Dimensional Fund Advisors, presented “The Implications of Investor Philosophy,” which explained how cognitive biases and heuristics may, for many investors, act to undermine investment performance.

Heuristics are generally referred to as mental shortcuts that may, often unknowingly, omit important or even critical factors in the decision-making process. One

An example presented of a heuristic that may undermine investor performance is anchoring and adjustment. This heuristic may occur when an investor’s initial information about an investment (e.g., a stock), may not be representative of fuller or more recent information. The anchoring and adjustment problem may arise when subsequent information emerges and an investor adjusts his or her assessment through the lens of the initial information, which may have been faulty, rather than a broader context for evaluation.

Another example is where recency effects may serve to undermine investment and / or business performance. An investor may, for example, overweigh a stock’s recent performance in making assessments about its future performance.

Advisers, therefore, may find it beneficial to check in with their clients at decision times, to help ensure that they are not, often unknowingly, engaging in mental shortcuts that omit critical decision-making factors.

RETIREMENT TIPS AND SOCIAL SECURITY PLANNING Two other topics presented at the conference included “Transition Tips for a Long Healthy Retirement” by Michelle A. Fritsch, Pharma D., and “Savvy Social Security Planning” by Jodi Davis. Both presentations illustrate the broader planning roles being increasingly assumed by CPAs.

STATEMENT

FINANCIAL PLANNING Whereas, traditionally, the financial / tax adviser’s role focus was almost exclusively on the “numbers,” Dr. Fritsch reminds us that we can be of greater service to our clients when we also act to address qualitative life issues, including the maintenance of good health. As she makes clear, while financial security in retirement is critical, so too is quality of life, and there is often a significant overlap between the two.

CPAs need to be prepared to respond, for example, where a retired client, exhibiting potential signs of mental decline, engages in apparently harmful financial transactions.

She noted that such declines could arise from factors beyond aging, such as medication interactions and / or depression.

While CPAs are not health care professionals, she noted the importance of advisers

understanding their role in helping clients get the help they need from such providers as well as from family and friends. Further, she explained how full retirement planning should include consideration of a realistic assessment of post-retirement activities that can contribute to maintaining a meaningful and rewarding life.

to ensure solvency for the program. Thus, while from a quantitative perspective it may be advantageous for a retiree to wait as long as possible (i.e., age 70) to collect benefits, the political perspective should be considered as well: whether Congress will act to ensure sufficient Social Security funding.

Jodi Davis, a frequent MACPA presenter, discussed Social Security planning under the current law, including the closing of the loopholes that previously allowed retirees to take advantage of “file and suspend” and the use of restricted applications. She also explained that planning for Social Security, with its own set of complex laws, becomes even more challenging when considering the important political consideration of whether Congress will act

The next MACPA PFP Conference, scheduled for October 2020, will continue the MACPA’s tradition of dynamic presentations addressing cutting-edge PFP issues.

More details will follow soon.

Seth Hammer, CPA, Ph.D., is a professor of accounting at Towson University.

Get The Tools to Help Your Clients With Their

Philanthropic Goals Research has shown that clients are not only open to discussing philanthropy with their advisors, they are hoping you will start the conversation! The Baltimore Community Foundation has tools to help your clients get started thinking about their financial future and philanthropic legacy.

SPRING 2020

Visit www.bcf.org/tools to request a free, complete set of sample resources.

37

SIMPLE ONLINE PAYMENTS FOR CPA FIRMS CPACharge is an easy-to-use practice management tool trusted by

more than 105,000 successful professionals, developed exclusively for CPAs to help manage payments and grow revenue in their practice.

DESIGNED FOR CPAs 0%, $2/TRANSACTION eCHECK PROCESSING

PCI COMPLIANCE INCLUDED ($150 VALUE)

RECURRING BILLING AND SCHEDULED PAYMENTS

SIMPLE REPORTING AND RECONCILIATION

SECURE, CUSTOMIZABLE PAYMENT PAGES

UNLIMITED SUPPORT

BY PHONE, LIVE CHAT, AND EMAIL

Payment Detail Submit to Smith Johnson, CPA

$1,000 Invoice Number

1005 Card Number

CPACharge is proud to be a vetted and approved Member Benefit of the

CVV

**** **** **** 9998

001

Exp.

NOV

2021 POWERED

BY

Pay CPA 38

CPACharge is a registered agent of Wells Fargo Bank N.A., Concord, CA and Citizens Bank, N.A., Providence, RI.

Special offer for MACPA members

cpacharge.com/macpa 866-455-3424 STATEMENT

MEMBER NOTES Kelli A. Cobb, CPA, MBA, has been promoted to Member with SEK, CPAs and Advisors. She provides accounting, consulting, and tax services to the firm’s small business and individual clients and specializes in small businesses involved with residential and commercial real estate activity.

Sonja M. Cox, CPA, CGMA, MBA, has been named president and CEO of Southern Maryland Electric Cooperative. Cox had been serving as SMECO’s senior vice president of financial, economic and employee services and chief financial officer. She assumed her new role on March 1.

Allen DeLeon, CPA, founding partner of DeLeon & Stang CPAs and Advisors, testified on Jan. 29 at the Maryland General Assembly in support of an amendment to Senate Bill 223 to establish a Commission on Tax Policy, Reform and Fairness in the state. DeLeon requested that the commission include a member of the Maryland Association of CPAs who is a tax professional licensed and regulated by the state of Maryland. The MACPA tax expert would “collaborate with commission members to effectively analyze and evaluate proposals to improve existing tax rules and tax systems. They would additionally contribute technical expertise and objective analysis based on widely-accepted guiding principles of good tax policy.”

Amanda Good has been promoted to office manager at UHY LLP’s Columbia, Md., office.

Annie L. Goulart has joined the Tax Department of the North Bethesda office of Dembo Jones, P.C.

FIRM NOTES Jones Advisory, LLC, has acquired Kelly CPAs and Consultants, LLC, a Bel Air CPA firm established in 1997. The joining of these firms brings together two top-talented companies whose clients will benefit from additional services and the combined technical expertise of staff. The appeal of this acquisition is that both firms share similar values of delivering client-first, high-quality personal service. Clients from both firms will have access to a wider array and depth of services, and the firms will have new opportunities for growth and expansion. Kelly CPAs will be integrated under the Jones Advisory name and have relocated their offices to 1701 Emmorton Road, Bel Air, Md., 21014. Kelly CPAs’ clients will continue to benefit from their same staff relationships while gaining additional resources and services available from Jones Advisory.

SPRING 2020

Brad Hoffman, CPA, has been named co-managing partner at DeLeon & Stang CPAs and Advisors.

He will share managing partner duties with along with Richard Stang, CPA. The announcement comes as part of a planned transition of the firm’s leadership. Allen DeLeon, CPA, founding partner and co-managing partner, with more than 35 years of experience, will retire on Dec. 31, 2020.

Elinor Litwack, CPA, a senior partner with GRF CPAs and Advisors, has been promoted to partner. She is the third partner in the firm’s Outsourced Accounting and Advisory group, and she joins six other women partners and principals at GRF. William Martin, Jr., CPA, has joined the tax practice at UHY Advisors, Inc., and UHY LLP, as principal. Martin, who will be based in the firm’s Columbia, Md., office, will be responsible for providing proactive and customized tax advice to a diverse group of clients.

Harold Mohn III, CPA, has been promoted to senior staff in the Tax Department in UHY LLP’s Columbia, Md., office.

William D. Oyster, CPA, has been named a member with SEK, CPAs and Advisors.

Salman Shahid, CPA, has been promoted to senior in the Audit and Assurance Department in UHY LLP’s Columbia, Md., office.

Megan Tanage has been promoted to senior staff in the Audit and Assurance Department in UHY LLP’s Columbia, Md., office.

IN MEMORIAM Harry Charles Ballman II, a CPA who practiced in the greater Washington, D.C., area and Annapolis for more than 60 years, died on March 5 from complications of renal and cardiac failure. He was 80.

39

CLASSIFIEDS office space

mergers & acquisitions

CPA FIRM OFFICE SPACE AVAILABLE IN TOWSON 660 Kenilworth Drive. 1938 sf suite with recep-

tion area, conference room and 8 offices (willing to lease a portion of suite). Ample free parking, renovated common areas with onsite CPA Firm Building Management. Open to sharing CPA firm resources including new staff training center.

If interested, please contact Dave Miller at dmiller@jlkcpas.com or call 410-321-9558.

MARYLAND PRACTICES FOR SALE:

gross revenues shown: Available after 4/15/20 - Bethesda/Gaithersburg/ Frederick Area Tax Firm $117K - strong fee structure, minimal overhead, excellent cash flow over 80%. See nationwide listings and register for free email updates at www.APS.net.

THINKING OF SELLING YOUR PRACTICE? Accounting Practice Sales is the leading marketer of tax and accounting practices in North America. We have a large pool of buyers, both individuals and firms, looking for practices to purchase. We also have the experience to help you find the right fit for your firm, negotiate the best price and terms and get the deal done. We welcome the opportunity to talk to you about our risk-free and confidential services. For more information please call Bradley Holmes with the APS Holmes Group at 1-800-397-0249 or email Bradley@APS.net.

Edward L. Crum CPA and Company P.A. A Tax Resolution Firm Specializing in IRS Cases, Tax Negotiations and Settlements, Offers In Compromise, and Tax Planning.

Since 1973, my firm and its affiliates have been successfully defending clients against the Internal Revenue Service as well as State Taxing Authorities. (Our office has a 90% acceptance rate on actual IRS Offers in Compromise).

(877) CRUM-CPA

40

Call me today to discuss an “at risk� client 415 West Patrick Street, Frederick, Maryland 21701 www.CRUMCPA.com

STATEMENT

42

STATEMENT

MACPA COULDN’T DO EVERYTHING THAT WE DO FOR OUR MEMBERS WITHOUT OUR

PREFERRED PROVIDERS

™

For information about sponsoring MACPA programs or to learn more about advertising with the MACPA please contact Amy Puente at 443.632.2323 or amyp@macpa.org.

SPRING 2020

43

RESPONDING TO COVID-19:

A VIRTUAL TOWN HALL WIT H M A CPA

How CPAs can navigate the unprecedented economic and professional challenges posed by COVID-19 — FREE FOR MEMBERS — INVITE YOUR COLLEAGUES The COVID-19 pandemic is causing unprecedented economic turbulence and historic legislative action. Join MACPA and professionals from all segments of the profession for a virtual discussion on how our profession is changing, what we’re doing to assist CPAs, and how CPAs can adapt to help their clients and each other.

Upcoming Live online WEbcasts

April 24 May 22

OUR

Speakers T O M HO O D

CPA, CITP, CGMA P RESID EN T & CEO , MACPA & BL I

R E B E KA H B R OWN CPA, D IRECTOR OF D EVEL OP MEN T, MACPA

| 8:30am–12pm

| 8:30am–12pm

ANNUAL MEETING

June 30

| 8:30am–12pm

LEARN MORE AND REGISTER AT:

44#MarylandCPAproud

B I L L S HE R I D AN

CAE, CHIEF COMMUNICATIONS OFFICER, MAC PA

macpa.org/townhalls STATEMENT

DATE

COURSE TITLE

CPE

START TIME

$MEM

$NON-MEM

LOCATION

Upcoming ONLINE Events & Courses A note about our live events Thank you for your patience as we navigate the COVID-19 uncertainty and make prudent adjustments to our schedule of live events.

The MACPA is following current CDC guidelines and recommendations. As a result, our entire team is busy postponing or flipping live events to virtual offerings. As you can imagine, this is not easy. We are looking for innovative ways to reimagine everything we do to create more and different value in this “new normal.”

We also have created a web page where these and other program changes are housed and updated as developments warrant.

You’ll find all of the latest updates at MACPA.org/COVID-19.

Thank you … and stay safe and healthy!

KEY: A

YB

AICPA Course

DATE

Featured Event

Available as Simulcast

COURSE TITLE

Yellow Book

CPE

START TIME

$MEM

$NON-MEM

LOCATION

AC CO U N TIN G & AUDITIN G (ONLINE) 4/27/20

A Revenue Recognition: Mastering the New FASB Requirements

8

10:30 am

$279

$339

Online

4/28/20

A Audits of 401(k) Plans

8

9 am

$279

$339

Online

2

10 am

$75

$90

Online

8

8 am

$300

$400

Online

2

10 am

$75

$90

Online

21.5

8 am

Varies

Varies

Online

5/4/20 5/11/20

Auditing Bits in Bytes™™ Session 1: Pre-Engagement Planning Activities 2020 EMPLOYEE BENEFIT PLAN AUDIT CONFERENCE

6/1/20

Auditing Bits in Bytes™ Session 3: Internal Control Considerations Rebroadcast

6/8/20

POSTPONED: A YB New Date TBD

6/15/20

Auditing Bits in Bytes™ Session 4: Assessing and Responding to Risk

2

10 am

$75

$90

Online

6/29/20

Auditing Bits in Bytes™ Session 5: Substantive Testing

2

10 am

$75

$90

Online

7/13/20

Auditing Bits in Bytes™ Session 6: Engagement Wrap-Up

2

10 am

$75

$90

Online

SPRING 2020

AICPA’s Not-for-Profit Industry Conference —

*additional early registration discounts are available for in-person + simulcast events when registering more than 30 days in advance.

45

DATE

COURSE TITLE

CPE

START TIME

$MEM

$NON-MEM

LOCATION

ACCOUNTING & AUDITING (ONLINE), CONTINUED 7/27/20

Auditing Bits in Bytes™ Session 7: Identifying, Evaluating and Communicating Internal Control Deficiencies

2

10 am

$75

$90

Online

8/10/20

Auditing Bits in Bytes™ Session 8: Engagement Wrap-Up and Quality Control Considerations

2

10 am

$75

$90

Online

21.5

8 am

Varies

Varies

Online

23

8 am

Varies

Varies

Online

9/16/20

RESCHEDULED:

11/9/20

NEW DATE:

A

A

AICPA’s CFO Conference AICPA Employee Benefit Plans Conference

BLI LE A D E R S H IP (ONLINE ) 4/20/20

The Journey to Becoming a Cherished Advisor: Utilizing AI to Create Opportunities for Long-Lasting Client Relationships

1

4 pm

$35

$45

Online

4/23/20

CFO/Controller & Financial Professional Updates Seminar Series: Finance, Operations, Micro-Economics, and the Internal Environment

8

8 am

$320

$420

Online

4/23/20

The Journey to Becoming a Cherished Advisor: The Soft Skills Needed to Create Long-Lasting Client Relationships

1

12 pm

$35

$45

Online

4/27/20

CPA Firm Business Development: The Data Analytics Opportunity

1

4 pm

$35

$45

Online

4/30/20

The Journey to Becoming a Cherished Advisor: Designing the Future Firm — Next Generation Hiring, Staffing and Succession Planning

1

12 pm

$35

$45

Online

5/15/20

POSTPONED: 2020 BUSINESS AND INDUSTRY CPE CONFERENCE — New Date TBD

8

8 am

$395

$495

Online

5/27/20

CPA Firm Business Development: The Data Analytics Opportunity

1

10 am

$35

$45

Online

6/4/20

CFO/Controller & Financial Professional Updates Seminar Series: Soft Skills in Leadership, Negotiation, and Team Building

8

8 am

$295

$395

Online

7/17/20

CPA Firm Business Development: The Data Analytics Opportunity

1

2 pm

$35

$45

Online

10/12/20

CPA Firm Business Development: The Data Analytics Opportunity

1

2 pm

$35

$45

Online

BU S I N E S S & IN DUSTRY (ONLINE ) 4/20/20

A Controller’s Update: Today’s Latest Trends

4

9 am

$179

$219

Online

4/20/20

A Financial Forecasting: Planning for Success

4

10:30 am

$179

$219

Online

4/22/20

How to Innovate When Your Boss Says “No”

1

9 am

$35

$45

Online

4/23/20

CFO/Controller & Financial Professional Updates Seminar Series: Finance, Operations, Micro-Economics, and the Internal Environment

8

8 am

$320

$420

Online

4/23/20

Anticipate Client Needs: Beyond Best Practices in Client and Customer Service

1

12 pm

$35

$45

Online

4

1 pm

$179

$219

Online

4/24/20

A The Changing Role of the Controller: Advancing from Tactical to

Strategic

4/27/20

2020 CPA Technology Trends Update

4

8 am

$150

$200

Online

4/27/20

Transform Your Organization With Office 365 and Teams

4

12 pm

$150

$200

Online

4/27/20

A Revenue Recognition: Mastering the New FASB Requirements

8

10:30 am

$279

$339

Online

4/28/20

A Audits of 401(k) Plans

8

9 am

$279

$339

Online

8

8 am

$395

$495

Online

5/15/20

46

POSTPONED: 2020 BUSINESS AND INDUSTRY CPE CONFERENCE —New Date TBD

Group discounts are available.

STATEMENT

DATE

COURSE TITLE

CPE

START TIME

$MEM

$NON-MEM

LOCATION

WE’RE HIRING TOP TALENT! Grossberg is a unique environment where talented and highly sophisticated professionals excel. Our staff and partners are some of the best and brightest in their field, operating at the highest level of professionalism and technical expertise.

Here, you find a culture of people who enjoy the challenge of untangling today’s highly complex web of business, transactional, financial and tax issues, while enjoying the benefits of working at one of the area’s premier firms.

Our mentorship program ensures that everyone has access to one-on-one training by industry experts who encourage their professional development. In addition, the boutique nature of our firm allows us to interact regularly and learn from one another in more casual ways. This provides us with the ability to offer skilled professionals tremendous opportunities for growth and job satisfaction, as well as a great work environment.

Our culture is defined by our people. We pride ourselves on fostering an environment of collegiality and camaraderie; we truly care about each other and work together to meet the 10 Things

Professionals Want Most 1. Purpose 2. Goals 3. Responsibility 4. Autonomy 5. Flexibility

demands of our elite group of clients. It is only through this teamwork that we are able to meet our professional demands, advance our business and technical skills, and still support each other to maintain a healthy work/family life balance.

This is an integral part of who we are, why we are successful, and how we have maintained our reputation as one of the best firms in the country.

Growth in our business has created new opportunities for

experienced CPAs. If you are seeking to move to the next level in your career, consider joining the Grossberg team!

6. Development

Qualifications:

7. Opportunity

• 5+ years of professional experience in public accounting

8. Transparency 9. Rewards 10. GROSSBERG

• Ability to research issues and apply concepts to clients’ situations • Proficiency in technical writing and research • Ability to communicate with clients and staff at all levels • Comfortable with working in a team environment

Looking for an exciting new opportunity, and a Great Place to Work?

Apply at www.Grossberg.com Grossberg Company LLP 6500 Rock Spring Drive Suite 200 Bethesda, MD 20817 *additional early registration discounts are available for in-person + simulcast events when registering more than 30 days in advance.

SPRING 2020

Trusted Business Advisor Since 1924

47

DATE

COURSE TITLE

CPE

START TIME

$MEM

$NON-MEM

LOCATION

There’s no There’s no business like business like your business. your business.

Money doesn’t make the world go ‘round. You do. You, the accountant, are the guardian of your clients’ success. And when you have the success of others resting on your shoulders, you need something sturdy to stand on. So, we’re arming you with the best tools for the job.

Money doesn’t make the world go ‘round. You do. You, the accountant, are the guardian of your Money doesn’t make the world go ‘round. You do. You, the accountant, are the guardian of your clients’ success. And when you have the success of others resting on your shoulders, you need clients’ success. And when you have the success of others resting on your shoulders, you need something sturdy to stand on. So, we’re arming you with the best tools for the job. something sturdy to stand on. So, we’re arming you with the best tools for the job.

Stay a step ahead of your workload.

Get the knowledge you need, when you need it.

Attract new clients.

With QuickBooks Online Accountant Stay a step ahead you can and track all of Stay a consolidate step ahead of your workload. your fi rm’s work in one of your workload. central place, helping you stay on top of your daily With QuickBooks Online Accountant tasks QuickBooks so you have more to assist With Onlinetime Accountant you can consolidate and track all of your clients and grow your practice. you can consolidate and track all of your firm’s work in one central place, your firm’s work in one central place, helping you stay on top of your daily helping you stay on top of your daily tasks so you have more time to assist tasks so you have more time to assist your clients and grow your practice. your clients and grow your practice.

With comprehensive, free CPE Get the knowledge you training and QuickBooks you Get the knowledge need, when you need it. certifi cation, theyou ProAdvisor need, when need it.

Program is here to help make you a With comprehensive, free CPE morecomprehensive, impactful partner to CPE your With free training and QuickBooks clients. training and QuickBooks certification, the ProAdvisor certification, the ProAdvisor Program is here to help make you a Program is here to help make you a more impactful partner to your more impactful partner to your clients. clients.

With over 60 marketing templates, Attract pricing guides and sample Attract new clients. engagement letters designed new clients. exclusively for accounting and tax With over 60 marketing templates, professionals, the Intuit Marketing With over 60 marketing templates, pricing guides and sample Hub offers extensive resources to pricing guides and sample engagement letters designed find and onboard new clients. engagement letters designed exclusively for accounting and tax exclusively for accounting and tax professionals, the Intuit Marketing professionals, the Intuit Marketing Hub offers extensive resources to Hub offers extensive resources to find and onboard new clients. find and onboard new clients.

Visit quickbooks.com/QBOA to learn more.

Visit quickbooks.com/QBOA to learn more.

Visit quickbooks.com/QBOA to learn more.

48

Group discounts are available.

STATEMENT

DATE

COURSE TITLE

CPE

START TIME

$MEM

$NON-MEM

8

8 am

$295

$395

Online

21.5

8 am

Varies

Varies

Online

8

9 am

$279

$339

Online

8

8 am

$300

$400

Online

23

8 am

Varies

Varies

Online

LOCATION

BUSINESS & INDUSTRY (ONLINE), CONTINUED 6/4/20

CFO/Controller & Financial Professional Updates Seminar Series: Soft Skills in Leadership, Negotiation, and Team Building

6/8/20

POSTPONED: A YB — New Date TBD

AICPA’s Not-for-Profit Industry Conference

EM P LO Y E E B E N EFITS (ON LIN E ) 4/28/20 5/11/20 11/9/20

A Audits of 401(k) Plans

2020 EMPLOYEE BENEFIT PLAN AUDIT CONFERENCE NEW DATE:

A

AICPA Employee Benefit Plans Conference

ET HI CS ( O N L IN E) 4/20/20

Ethics: Caesar’s Wife: Tipping the Delicate Balance of Leadership and Ethics

4

11 am

$110

$140

Online

4/28/20

MBAexpress: Good Governance — V 2.0

1

12 pm

$35

$45

Online

FUT U R E R E A D Y (ONLINE ) 4/23/20

Anticipate Client Needs: Beyond Best Practices in Client and Customer Service

1

12 pm

$35

$45

Online

4/27/20

2020 CPA Technology Trends Update

4

8 am

$150

$200

Online

4/27/20

Transform Your Organization With Office 365 and Teams

4

12 pm

$150

$200

Online

5/15/20

POSTPONED: 2020 BUSINESS AND INDUSTRY CPE CONFERENCE — New Date TBD

8

8 am

$395

$495

Online

6/1/20

Auditing Bits in Bytes™ Session 3: Internal Control Considerations Rebroadcast

2

10 am

$75

$90

Online

6/15/20

Auditing Bits in Bytes™ Session 4: Assessing and Responding to Risk

2

10 am

$75

$90

Online

6/29/20

Auditing Bits in Bytes™ Session 5: Substantive Testing

2

10 am

$75

$90

Online

7/27/20

Auditing Bits in Bytes™ Session 7: Identifying, Evaluating and Communicating Internal Control Deficiencies

2

10 am

$75

$90

Online

8/10/20

Auditing Bits in Bytes™ Session 8: Engagement Wrap-Up and Quality Control Considerations

2

10 am

$75

$90

Online

16

8 am

$320

$420

Online

16

8 am

$320

$420

Online

21.5

8 am

Varies

Varies

Online

9/22-23 /20

51st ANNUAL CHESAPEAKE TAX CONFERENCE

LEG I S L AT IV E & RE G ULATORY (ON LINE) 9/22-23 /20

51st ANNUAL CHESAPEAKE TAX CONFERENCE

NON P R O F IT / NOT-FOR -PR OF IT (ONLINE) 6/8/20

POSTPONED: A YB — New Date TBD

AICPA’s Not-for-Profit Industry Conference

PE R S O N A L D E V ELOPME N T (ON LIN E) 4/22/20

How to Innovate When Your Boss Says “No”

1

9 am

$35

$45

Online

4/23/20

The Journey to Becoming a Cherished Advisor: The Soft Skills Needed to Create Long-Lasting Client Relationships

1

12 pm

$35

$45

Online

SPRING 2020

*additional early registration discounts are available for in-person + simulcast events when registering more than 30 days in advance.

49

DATE

COURSE TITLE

CPE

START TIME

$MEM

$NON-MEM

8

8 am

$295

$395

Online

16

8 am

$320

$420

Online

LOCATION

PERSONAL DEVELOPMENT (ONLINE) CFO/Controller & Financial Professional Updates Seminar Series: Soft Skills in Leadership, Negotiation, and Team Building

6/4/20

PE R S O N A L F IN ANCIAL PLANNING (ONLINE) 9/22-23 /20

51st ANNUAL CHESAPEAKE TAX CONFERENCE

PR A CT ITIO N E R S (ON LIN E ) 4/27/20

2020 CPA Technology Trends Update

4

8 am

$150

$200

Online

4/27/20

Transform Your Organization With Office 365 and Teams

4

12 pm

$150

$200

Online

9/22-23 /20

51st ANNUAL CHESAPEAKE TAX CONFERENCE

16

8 am

$320

$420

Online

11/5/20

Don Farmer’s 2020 Individual Income Tax Workshop

8

8 am

$330

$430

Online

11/6/20

Don Farmer’s 2020 Corporate Income Tax Workshop

8

8 am

$330

$430

Online

SPE CI AL IZ E D K NOWLE D GE & APPLI C AT IONS (ONLINE) CFO/Controller & Financial Professional Updates Seminar Series: Finance, Operations, Micro-Economics, and the Internal Environment

4/23/20

A Streamlined Excel Reporting Series Session 1: PivotTable Fundamentals

4/27/20

8

8 am

$320

$420

Online

2

1 pm

$99

$119

Online

SPRING 2020

IMPROVE YOUR

Strategic Financial Leadership How do you make the best business decisions in the face of political and economic uncertainty?

BLI’s CFO/Controller Series shows you how to lead when there is no path.

Finance, Operations, Micro-Economics, and the Internal Environment APRIL 23 | 8:00 AM | LIVE ONLINE WEBCAST

| CPE: 8

Soft Skills in Leadership, Negotiation, and Team Building JUNE 4 | 8:00 AM | LIVE ONLINE WEBCAST

50

Group discounts are available.

| CPE: 8

Featuring Michael Kraten, CPA, PhD (Deloitte, BDO, Harvard Law School, Johns Hopkins University, Yale University, Dartmouth College, and more)

macpa.org/ControllerSeries-Live

Groups of five or more qualify for group discounts, which are available in webcast format. Please call to 888-481-3500 to learn more.

STATEMENT

DATE

COURSE TITLE

CPE

START TIME

$MEM

$NON-MEM

LOCATION

BETTER SERVE YOUR CLIENTS As a valued business partner, Sage is here to help you grow your practice, stay competitive, and deliver the best solution for your clients.

A true partner, here to help protect and grow your client base

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

More choices with reliable desktop software and the convenience of the cloud

Visit www.sage.com/en-us/MACPADemo to register for a free demo webcast.

SPRING 2020

*additional early registration discounts are available for in-person + simulcast events when registering more than 30 days in advance.

51

DATE

COURSE TITLE

CPE

START TIME

$MEM

$NON-MEM

LOCATION

A meeting of the minds that lead firms and organizations LIVE, ONLINE WEBCAST | CPE: 4 MAY 20

Financial Storytelling – How to Report Financial Information (Part 1) with Peter Margaritis UPDATE: This seminar has been rescheduled from March 20, 2020.

MAY 28

Working Together – Building Strategic Relationships with

Jennifer Elder

UPDATE: This seminar will be rescheduled for the Fall 2020. New date to be announced.

JUNE 16

Financial Storytelling – Application (Part 2) with Peter Margaritis

UPDATE: This seminar has been rescheduled from April 17, 2020.

MACPA.ORG/QFLS 52

Group discounts are available.

STRATEGIC LEARNING POWERED BY

BUSINESS LEARNING INSTITUTE #MarylandCPAproud

STATEMENT

DATE

COURSE TITLE

CPE

START TIME

$MEM

$NON-MEM

LOCATION

SPECIALIZED KNOWLEDGE & APPLICATIONS (ONLINE), CONTINUED 4/28/20

A Streamlined Excel Reporting Series Session 2: Working with PivotTables

2

1 pm

$99

$119

Online

4/29/20

A Streamlined Excel Reporting Series Session 3: PivotTable Wrap • Up and Web Data

2

1 pm

$99

$119

Online

4/30/20

A Streamlined Excel Reporting Series Session 4: External Data and PivotCharts

2

1 pm

$99

$119

Online

TA X ( ON L IN E ) 4/22/20

Understanding the SECURE Act and Other 2019 Tax Law Changes

2

1 pm

$75

$90

Online

4/28/20

Understanding the SECURE Act and Other 2019 Tax Law Changes

2

11 am

$75

$90

Online

4/29/20

Understanding the SECURE Act and Other 2019 Tax Law Changes

2

12 pm

$75

$90

Online

9/22-23 /20

51st ANNUAL CHESAPEAKE TAX CONFERENCE

16

8 am

$320

$420

Online

11/5/20

Don Farmer’s 2020 Individual Income Tax Workshop

8

8 am

$330

$430

Online

11/6/20

Don Farmer’s 2020 Corporate Income Tax Workshop

8

8 am

$330

$430

Online

11/20/20

Don Farmer’s 2020 Federal Tax Update

8

8 am

$330

$430

Online

4

1 pm

$179

$219

Online

TE CHN O L O G Y (ONLINE ) 4/20/20

A Excel • Using PivotTables for Data Analysis

4/27/20

2020 CPA Technology Trends Update

4

8 am

$150

$200

Online

4/27/20

Transform Your Organization With Office 365 and Teams

4

12 pm

$150

$200

Online

4/27/20

Introduction to Data Analytics with Excel Power Query

1

12 pm

$35

$45

Online

4/28/20

A Microsoft PowerBI • Fundamentals of the PowerBI Desktop App

4

10 am

$179

$219

Online

4/29/20

A Microsoft PowerBI • Fundamentals of the PowerBI Dashboards

4

10 am

$179

$219

Online

8

8 am

$395

$495

Online

5/15/20

POSTPONED: 2020 BUSINESS AND INDUSTRY CPE CONFERENCE — New Date TBD

REGISTER ONLINE AT

MACPA.ORG

SPRING 2020

*additional early registration discounts are available for in-person + simulcast events when registering more than 30 days in advance.

53

DATE

COURSE TITLE

CPE

START TIME

$MEM

$NON-MEM

LOCATION

PRODUCTIVITY, SIMPLY ENABLED® Gain greater control and visibility into all your work processes with XCM.

54

XCM is the premier Productivity Enablement and Workflow Platform developed by and for tax, accounting and finance professionals delivering unprecedented performance gains to leaders, teams, and professionals. The cloud platform enables you to get more out of your human capital and the technology solutions you currently use.

Group discounts are available.

CALL 781.356.5152 OR LEARN MORE AT XCMSOLUTIONS.COM TODAY.

STATEMENT

DATE

COURSE TITLE

CPE

START TIME

$MEM

$NON-MEM

LOCATION

THE TOOLS TO TRANSFORM YOUR PRACTICE WE PROVIDE THE TOOLS, SUPPORT, AND EXPERTISE YOU NEED TO FUTURE-PROOF YOUR PRACTICE Unlock capacity with advanced automation

•

Instant document capture with 99% accurate data extraction

•

Smart automation rules with hands-free ledger publishing

•

Searchable archive with easily retrievable source documents

•

Integrations with the leading accounting software including QBO & Xero

Get started with the tool trusted by 50,000 accountants & bookkeepers

www.receiptbank.com/us

SPRING 2020

@receiptbank - Email: partners@receiptbank.com - Phone: +1 855 969 5448 8th Floor | 1805 7th St. NW - Washington DC 20001 *additional early registration discounts are available for in-person + simulcast events when registering more than 30 days in advance.

55

DATE

COURSE TITLE

CPE

START TIME

$MEM

$NON-MEM

LOCATION

ON-DEMAND LEARNING Accelerate your professional growth with a library of on-demand courses Learning that matters – available 24/7.

On-demand learning is an online format that grants you access to training, 24 hours a day, 7 days a week. It’s focused on learning that matters through engaging and topical content, taught by thought leaders who are passionate about the subject matter.

T O P ICS IN C L UDE : • • • • • • • • •

56

Leadership Strategy Communication Change Management Diversity and Inclusion Future ready and Anticipatory Ethics Business Development Technical topics

C O UR S E S W E O F F E R : MBA Express CFO/Controller Series Auditing Bits in Bytes The Anticipatory Organization Accounting & Finance Edition … And more

Visit MACPA.ORG/ON-DEMAND to access the complete library of on-demand courses

Group discounts are available.

STATEMENT

Sales tax changes.

Don’t risk it.

Automate it.

Fast, easy, accurate and affordable.

That’s Avalara.

Avalara.com

MARYLAND ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS 901 Dulaney Valley Road, Suite 800 Towson, MD 21204 410.296.6250 | www.macpa.org

Do you have clients who are experiencing tax debt or other tax problems?

• • • • • •

Our attorneys can assist your clients with Offer in Compromise • Payroll Taxes & Trust Fund Recovery Penalty, Civil Penalty Audits & Appeals • License/Tags Hold Installment Plan Agreements • Sales & Use Tax Maryland State Tax Issues • Civil & Criminal Tax Implications Tax Levies, Garnishments & Liens • Audit Reconsideration & much Unfiled Tax Returns

more.

Juda Gabaie, Esq. 115 Sudbrook Lane, Suite 206 • Baltimore, MD 21208 (p) 410-358-1500 • (f) 800-918-2270 ReliableTaxAttorney.com • jg@reliabletaxattorney.com

Offices in Columbia, Frederick, Annapolis and Rockville, Maryland.