September/October 2020

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TRENDS AND TRANSITIONS

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contents S E P T E M B E R /O C TO B E R 2 02 0

THE MAGAZINE OF THE NEW JERSEY SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS

4 Hiring Trends and Skills Needed for the Modern CPA RALPH ALBERT THOMAS, CPA (DC), CGMA Chief Executive Officer & Executive Director rthomas@njcpa.org THERESA HINTON Chief Operating Officer thinton@njcpa.org DON MEYER, CAE Chief Marketing Officer dmeyer@njcpa.org RACHAEL BELL Managing Editor rbell@njcpa.org KATHLEEN HOFFELDER Senior Content Editor khoffelder@njcpa.org

To be hired as that “go-to” person for their clients and organization, today’s CPAs need to have more than the traditional set of skills. They need a mixture of technical and soft skills along with people skills and the ability to bring in clients to truly make it in the industry. See what skills are needed today and what young professionals are bringing to their newly landed jobs. There’s no one-size-fits-all strategy for hiring, but some skills are more in demand than others.

8 Education: Preparing the Next Generation of CPAs

With the changing landscape of the accounting profession, does the training ground for young professionals today make sense? Does the college accounting curriculum need to be altered?

How can colleges, and even high schools, better prepare young professionals? Is there a more appropriate way to train CPAs than the traditional route? Find out what a broad mix of experts believe.

10Career Transitioning: A Focused Path or a Leap of Faith?

The accounting profession today offers a plethora of choices for careers that were almost unheard of years ago. And it’s easier than ever to transition out of one path and into another.

See what it takes to make it to your dream job.

DIANE ESPIRITU Senior Graphic Designer despiritu@njcpa.org WALT HARTSFIELD Junior Graphic Designer whartsfield@njcpa.org

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2 CLOSE UP

18 FIRM MANAGEMENT

Rethinking Diversity, Equity and Inclusion

Plan Now for the Successful Transition of Leadership

12 ACCOUNTING, AUDITING & ATTEST

19 INDUSTRIES

The Critical Role of Internal Control 14 BECOMING A CPA

The Value of Internships 15 BUSINESS MANAGEMENT

Determining Choice of Entity 16 FINANCIAL PLANNING SERVICES

5 Estate Planning Strategies in Light of the SECURE Act

Creating a Clearer Picture of Expenses for Nonprofits 21 PROFESSIONAL DEVELOPMENT

Networking is Now More Essential Than Ever 22 RISK & COMPLIANCE

Risky Business: Risk Management Lessons From COVID-19

25 TECHNOLOGY & INFORMATION MANAGEMENT

Confidential Communications in a Digital World 26 NJCPA NEWS

y 2020 Ovation Award Winners y NJCPA Lotteries Assist Members y Emerging Technologies Conference to Focus on New Data Efficiencies 39 CLASSIFIEDS

24 TAX

40 MEMBER STORY

7 Tips for Navigating the Troubled Waters of Tax Controversy

Matthew Wielkotz, CPA

CLOSE UP

Rethinking Diversity, Equity and Inclusion

BY RALPH ALBERT THOMAS, CPA (DC), CGMA, CEO AND EXECUTIVE DIRECTOR, NJCPA

Associations exist to bring people together. They bear a great responsibility for shaping society and can be a big force for change. The NJCPA’s purpose includes elevating the accounting profession and helping our members create positive impact through their work.

As a concerned and socially conscious organization, the NJCPA is resolved to do the work necessary to foster fundamental changes that address inequality and exclusion. To this end, we have formed a task force to outline an action plan to prioritize diversity, equity and inclusion for our members and the companies and organizations where they work.

We do have our work cut out for us.

After all, of the more than 500,000 licensed CPAs in the United States, only 16 percent are comprised of Asian, Hispanic and Black ethnicities, according to a 2019 Trends report from the American Institute of CPAs (AICPA). Unfortunately, diversity in the CPA profession has changed very little in the last 25 years.

THE CHALLENGES AND BENEFITS Demographic changes are making diversity a business imperative. The total number of minorities in the U.S. will be the majority by 2042, and the number of minorities that are business owners or occupy top roles continues to grow. Firms looking to do business with those companies need to ask themselves, “Do we have the know-how, understanding and in-house human capital to fully understand the culture, needs and sensitivities of our minority clients?”

Studies confirm that diverse and inclusive teams are not only more innovative,

but also produce superior financial returns.

Here are just a few key points to consider: y A significant majority (67 percent) of active and passive job seekers say that they want to work for a company that has a diverse workforce. y Racially diverse teams outperform industry norms by 35 percent. y Worldwide, companies with the most ethnically and culturally diverse boards are 43 percent more likely to experience higher profits.

When an inclusive culture exists at an organization, true change is possible. A 2019 Deloitte Insights report shows why it is important for boards to educate organizations about this issue and how it can impact strategy. The report recommends that boards should align with management on the definition of inclusion and proactively provide input to shape the inclusion vision, strategies and goals; understand the organization’s diversity and inclusion maturity levels and efforts; and stay aware of the barriers to fostering an inclusive culture.

The accounting profession, though, has difficulty holding onto qualified candidates. At each step in the staffing chain, the percentage of minority representation drops, from college enrollment to overall CPA firm employees. A recent Howard University study identified four primary obstacles for minority professionals on the job: not feeling that they were given high-profile and challenging assignments, lack of access to the right social networks, not feeling accepted or welcomed at work, and not feeling

satisfied with the level of feedback given for their performance.

WHAT CAN HELP? Mentoring, of which I’m a big proponent, has shown tremendous success. In the Howard University survey, 78 percent of Black accounting professionals said that their career had benefited from a fruitful mentoring relationship in their current work environment.

Firms and companies also need to look at the affordability of the CPA Exam. The NJCPA and AICPA recently developed Exam scholarships, and I encourage accounting firms and companies of all sizes to provide financial assistance by paying for CPA Exam registration and associated fees for their staff pursuing the CPA license.

And every one of you can help. We welcome your input about measures the NJCPA should consider as part of its diversity, equity and inclusion efforts. Send your ideas to feedback@njcpa.org.

LEARN MORE SEPT. 14, WEBCAST RECOGNIZING AND NEUTRALIZING BIAS

NOV. 17, WEBCAST

SOCIALIZING INCLUSIVENESS

THROUGHOUT YOUR ORGANIZATION

DEC. 8, WEBCAST

SUSTAINING AN INCLUSIVE

CULTURE DURING GROWTH AND SUCCESSION

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New Jersey CPA (ISSN 1534-6692) is published six times per year by the New Jersey Society of Certified Public Accountants, 105 Eisenhower Parkway, Suite 300, Roseland, NJ 07068. Issue No. 83 Copyright © 2020 New Jersey Society of Certified Public Accountants. Annual membership dues include $9 for a one-year subscription to New Jersey CPA magazine. Members may not deduct subscription price from dues.

Periodicals postage paid at Roseland, NJ, and at additional mailing office. POSTMASTER: Send address changes to New Jersey CPA, 105 Eisenhower Parkway, Suite 300, Roseland, NJ 07068-1640.

The materials and information contained within New Jersey CPA are offered as information only and not as practice, financial, accounting, legal or other professional advice. The opinions expressed herein are those of the authors and not necessarily those of the New Jersey Society of CPAs. Publication of an advertisement in New Jersey CPA does not constitute an endorsement of the product or service by the New Jersey Society of CPAs.

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3

HIRING TRENDS AND SKILLS NEEDED FOR THE MODERN CPA

By KATHLEEN HOFFELDER, NJCPA SENIOR CONTENT EDITOR

A decade ago, non-technical skills were not often sought by those hiring accounting professionals, but they have become a mainstay of CPAs looking to not only be trusted advisors to their clients but true strategists for their businesses.

If one were to come up with a recipe for a modern CPA, it might consist of a cup of technical knowledge, a quarter of a cup of data and analytical expertise, an eighth of a cup of soft skills, an eighth of a cup of client retention abilities and a healthy measure of leadership and eagerness to adapt to change thrown in.

NARROWING THE SKILLS GAP To be hired as that “go-to” person for their clients and organization, CPAs have had to add new skills, adapt old ones and revamp their impression of what good client relations is all about. Is the skills gap narrowing between what accounting advisories want in new candidates and what young professionals are bringing

CONTRIBUTORS In order of appearance

ADITI SHAH, CPA Senior Tax Accountant Cullari Carrico LLC

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NICOLE DEROSA, CPA, MAcc Tax Manager Withum

SEPTEMBER/OCTOBER 2020 | NEW JERSEY CPA

ROBERT TRAPHAGEN, CPA, CGMA Managing Partner Traphagen & Traphagen CPAs LLC

MOLLY LOCKWOOD Director of Human Resources SobelCo LLC

to their newly landed jobs? What about partners? What do they look for in other partners? There’s no one-size-fits-all accounting firm or finance department, so there’s no precise description for what’s needed in hiring. But there is a growing necessity for those skills that take an accounting professional further away from the daily grind.

As Aditi Shah, CPA, senior tax accountant at Cullari Carrico LLC, explains, young professionals are big contributors to the changing role of the new CPA. “The skills gap is narrowing as young professionals make an impact on the firms and companies they work for, which allows new candidates an easier path to success,” she says.

New graduates are reaping the benefits of organizations looking for more modern CPAs and those even outside the traditional CPA model. Nicole DeRosa, CPA, MAcc, tax manager at Withum, recognizes this change when she notes the American Institute of CPAs (AICPA) says CPA firms are turning to nonaccounting graduates as there is an increased demand for technology skills (i.e., data science, analytics, artificial intelligence) in the accounting profession. “Now more than ever, to stay competitive, firms must leverage technology to the best of their abilities as utilization of advanced solutions for accounting processes becomes more and more prevalent in the constantly evolving industry,” she says.

PHILIP SOOKRAM, CPA, MAcc Assistant Professor Saint Peter’s University

BENJAMIN ASPIR, CPA, MST Senior Manager EisnerAmper

DAVID CRISTELLO Founder and CEO Jetpack Workflow

JESSICA L. LEVIN, MBA, CMP, CAE, DES President and Chief Connector Seven Degrees, LLC

NEW JERSEY CPA | SEPTEMBER/OCTOBER 2020

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Young professionals bring a host of new skills to the table, namely technological and social media capabilities.

These they honed in various college environments, social engagements and as new social media apps have rolled out.

CPAs today are graduating with technology-heavy concentrations and partaking in IT- and data analytics-oriented masters programs.

For the younger generations, Robert Traphagen, CPA, CGMA, managing partner at Traphagen & Traphagen CPAs LLC, explains, “data analytics is everywhere.” While reviewing college curriculums with his son and seeing an abundance of data mining and machine learning classes, he shares that there are many opportunities for data learning today, which will only enhance the CPA of tomorrow. “CPAs who have the key analytical skills of critical thinking, data analysis and interpersonal communication skills will be well positioned for growth in the future,” he says. The role of the CPA is changing with the advancement and innovation of new technologies, he adds.

Schools are also jumping on the tech bandwagon. “Part of that adaptation will include updating the curricula to integrate technology skills that are becoming essential in the profession,” according to the January 2020 Journal of Accountancy article, “2020s vision: Tech transformation on tap.” It further notes, “The evolution of accounting course work will occur as educators in all fields will be challenged to adapt to new technology-enabled delivery methods, as online degrees and classes seem destined to grow in popularity.”

Technology, indeed, has altered the role of the modern CPA, particularly as the industry embraces a cloudbased working environment. “Over the decades, the accounting profession has been influenced by evolving technology. Both software and hardware have changed drastically, enabling professional service providers to access the essential data that helps clients adapt to industry trends,” says Molly Lockwood, director of human resources at SobelCo.

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And technology will only keep on moving the needle forward. As the JoA article notes, “The ability of 5G to transmit data at much faster speeds and in much greater amounts will open the floodgates to a torrent of information from what will be billions of devices connected to the internet. That data, in turn, will fuel the growth of AI, especially in the area of machine learning.”

Other skills, however, like good communication and client retention, are also in high demand. Though seasoned CPAs are often more equipped to excel in those areas, young professionals are aware they need to learn them. “Relationship building is more a function of learning than being taught. Like any other skillset, this requires work, but can be learned by a motivated individual with a successful mentor,” admits Shah. “Young professionals are accustomed to communicating thoughts limited to 280 characters. This has its advantages in that thoughts are direct and concise,” she adds, warning that seasoned professionals may not view this communication as a dialogue.

Young professionals are beginning to understand that soft skills will enhance their learning experience — and ultimately their careers. “Those who are entering the accounting profession are finding that soft skills, such as emotional intelligence, self-awareness, effective communication and leadership skills are highly regarded,” explains Lockwood. “If the classroom curriculum offers an education focused only on technical skills, students will miss the opportunity to grow personally as well as professionally.”

Lockwood adds, “Owners of small to midsize businesses, like their C-suite colleagues, have become much more sophisticated, knowledgeable and connected, as well as more demanding.

While the financial reports will always be the foundation of the business’ analysis, business leaders are looking for, and expecting, a level of assistance that goes beyond the numbers.”

Communication skills, adds DeRosa, could not be more important both inside and outside the workplace. “I’d go as far as saying that developing long-last-

SEPTEMBER/OCTOBER 2020 | NEW JERSEY CPA

ing, meaningful relationships is just as important as possessing strong, technical accounting skills. The development of communication skills begins early on in life and is constantly shaped by experiences and interactions over time.

Building strong professional relationships at the onset of one’s career can be a bit intimidating, however it is important that we are providing the proper tools to enable the next generation to thrive.”

She adds, “Young professionals need to be receptive to the various communication styles and ready to embrace change.”

NEW SHIFTS The COVID-19 pandemic hastened some shifts in CPAs’ job functions. According to Traphagen, “CPAs were designated essential for a reason, not only to manage, but to lead our clients in a virtual environment by providing essential services in interpreting complex legislation within a crisis-driven timeline.” He adds, “We assisted our clients with cashflow models, financing options, renegotiation of leases and stimulus relief programs. And we assisted the mainstream economy by interpreting a myriad of rapid legislative changes within days of enactment. There is a new paradigm; a shift from compliance to advisory services.”

The pandemic proved that flexibility in job functions worked, and those organizations that keep some of that flexibility should look attractive to new hires going forward. As Traphagen explains, “Firms are now focusing on new hires who are tech savvy and can analyze real-time information, all while connecting and communicating effectively with clients via virtual collaboration tools such as Zoom and Microsoft Teams. New hires are now seeking to work for firms that have a culture of work-life balance and, more importantly, firms that can adapt to changing times.”

A CPA’s role as a trusted business advisor, and as an essential service, is now more important than ever, adds Philip Sookram, CPA, MAcc, assistant professor in the Department of Accountancy & Business Law at Saint Peter’s University.

“As of May 2020, LinkedIn named CPAs as the sixth most in-demand job moving

forward. The CPA is traditionally a role that guarantees long-term job security,” he says.

And having skills, such as bringing in business to an accounting advisory, will prove extremely useful to being hired, explains Benjamin Aspir, CPA, MST, senior manager at EisnerAmper. “The earlier a CPA can dedicate him/herself to learning this important skill, the less difficult it will be down the road. ‘You reap what you sow;’ it takes years of practice and perseverance to develop this skill.” He adds, “Our relationships with clients are built on trust, and this does not happen overnight,” noting that volunteering with a local organization, joining a networking group, writing articles and giving presentations can help acquire clients.

Shah agrees. “It is extremely important to have the ability to bring new business to the firm. However, it is equally important to be able to retain clients, which should be easier. A client deserves service, and meeting that basic need by answering calls

and listening to what they want can often result in new business.”

David Cristello, founder and CEO of Jetpack Workflow, says, “Don’t forget that your client base is likely waiting for you to offer them more services. In fact, upselling clients is typically five times more profitable than finding new clients.” He adds that it’s important to discuss additional areas of opportunity where the firm can help.

“To be successful, you don’t need to have an abundance of contacts,” explains Jessica L. Levin, MBA, CMP, CAE, DES, president and chief connector of Seven Degrees, LLC. But, she says, they need to be strong ones.

“Developing a quality network that trusts you because you bring value can support your business development efforts for your entire career,” she says. “The most effortless connections are where you have common interests and that you like as people. Thinking about business relationships as friendships is less daunting than feeling like you have to sell to everyone you meet.”

LEARN MORE

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7

EDUCATION: PREPARING THE NEXT GENERATION OF CPAs As the role of the CPA demands the mastery of more nontraditional accounting skills, professionals both in academia and in public and private accounting practice are left pondering what kind of education is needed to successfully prepare a new breed of accountants.

From newly designed course offerings to customized internships, experts weigh in on the education and training that is needed at both the high school and college levels: Do high school students understand what it means to be a CPA? How can we explain a CPA to high school students?

Cathleen McQuillen, D.P.S., CPA, associate professor in the School of Business & Digital Media at Georgian Court University Many first-year students just out of high school do not understand what it means to be an accountant and do not appreciate the prestige and employment opportunities for CPAs. This is true whether the student comes from a more privileged background or is a first-generation student going to college. Often students first learn of accounting by taking the required accounting classes for all business students. If these are not taken until junior or senior year, changing to an accounting major would delay graduation which directly impacts their financial future.

Often this is not a risk they are willing to take. A recent trend is the better-prepared student taking the lower-level college courses in high school which has led to more students selecting accounting as a major upon entry to college.

What is also needed to initiate an interest among high school students is to meet them where they live, online. We know that accounting appeals to a certain type of person, and the use and development of games such as AICPA’s “Bank on It” game is important.

But to fully attract students, an application with prizes and advancement would be more interactive and effective.

Does the college accounting curriculum need to be altered? How can colleges better prepare young professionals?

Corey R. Temple, CPA, managing partner of KPMG LLC’s Short Hills office Today’s professionals need a blend of accounting and STEM skills. The future accountant needs to be more data-centric,

CONTRIBUTORS In order of appearance

CATHLEEN MCQUILLEN, D.P.S., CPA Associate Professor Georgian Court University

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COREY R. TEMPLE, CPA, Managing Partner KPMG LLC

SEPTEMBER/OCTOBER 2020 | NEW JERSEY CPA

COURTNEY McLAUGHLIN, CPA, Senior Tax Accountant Withum

DR. JOSEPH HOWE CPA, CFE, CGFM Chief Financial Officer

with skills in data mining, analysis and visualization. Auditors need to “speak the language of data” and should be well versed in artificial intelligence (AI), data science, blockchain and other technologies as well as accounting practices.

KPMG, for example, is helping to shape the “accountants of the future” through the KPMG Master of Accounting with Data and Analytics Program, which prepares auditors and tax professionals for the data age by integrating data and analytics skills into traditional accounting courses.

How do internships help? Are they a stepping-stone to a job?

Courtney McLaughlin, CPA, senior tax accountant at Withum Internships help students experience different fields of accounting. One of the most beneficial aspects of an internship is the exposure and hands-on experience it provides to different areas of account-

ing. Audit? Tax? Public? Private? There are so many options! These experiences allow students to find which areas of accounting they dislike and enjoy, allowing them to make more educated decisions when it comes time to commit to an industry for full-time employment.

Is there a more appropriate way to train CPAs than the traditional route?

Dr. Joseph Howe, CPA, CFE, CGFM, chief financial officer of a government entity in New Jersey Becoming a CPA requires a certain level of education and experience. It is an apprentice profession in that to become fully licensed, you must work under the supervision of an experienced licensee for a specified period of time. This model has stood the test of time from the trades to the medical profession. Both education and experience are important pillars of gaining the knowledge, skills and abilities necessary to be successful

in the profession. While prescribed a particular set of courses, aspiring CPAs have flexibility outside of the requisite coursework in getting their degree. The CPA license should be viewed from the lens of a generalist. Accountants are exposed to accounting, audit and tax and understand the mechanics of each of these areas. Once working, an accountant can choose to specialize and can get specialized credentials in that area.

An initiative is underway to transform the CPA licensure model to recognize the rapidly changing skills and competencies the practice of accounting requires today and will require in the future.

Learn more about CPA Evolution, a joint effort of the National Association of State Boards of Accountancy and the American Institute of CPAs, at njcpa.org/cpaevolution.

NEW JERSEY CPA | SEPTEMBER/OCTOBER 2020

9

CAREER TRANSITIONING: A FOCUSED PATH OR A LEAP OF FAITH?

By KATHLEEN HOFFELDER, NJCPA SENIOR CONTENT EDITOR

With a more agreeable environment to switch between career paths and shorter steps to achieve partner or CFO status, there has never been a more exciting time to be a CPA.

In most professions, an undergraduate degree opens doors, a master’s degree opens additional doors and having a specialized license or credential provides even more opportunities. While this is true in accounting, the profession also offers a plethora of choices for careers today that are increasingly varied and far removed from the traditional role of an accountant.

STUDENT TO STAFF Students who have done internships will likely have an easier time making the transition to full-time employee, but those without that participation can also do well, given the right academic program and willingness to learn. Some obvious missteps can occur in this stage, but young professionals who communicate, get organized and have a desire to learn everything they can get their hands on will be ahead of the game.

David Cristello, founder and CEO of Jetpack Workflow, has some helpful tips for those just starting out in the industry. He says it’s best to “become the most curious person about the profession you are about to enter.” This includes listening to podcasts, watching videos, reading one book a month about the field and then making a list of the top 20 companies someone wants to work for. By reaching out and asking to interview them about what they think of the new workforce and the challenges they’re experiencing as an owner/ partner/leader, he says, it’s a proactive way to engage with them. “This ‘1-2’ approach helps you 1) quickly get up to speed on the industry and become a more insightful individual to connect with and 2) gets you in the door at the top companies.”

Other skills, such as the ability to communicate well with staff, clients

CONTRIBUTORS In order of appearance

DAVID CRISTELLO Founder and CEO Jetpack Workflow

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COURTNEY McLAUGHLIN, CPA Senior Tax Accountant Withum

SEPTEMBER/OCTOBER 2020 | NEW JERSEY CPA

JOSE BORBON, CPA Assistant Vice President/ Senior Auditor Kearny Bank

STEPHANIE S. DANOS, CPA Senior Forensic Associate Withum

and other company executives, will help students transition well to working life. As Courtney McLaughlin, CPA, a senior tax accountant at Withum, notes, “Communicate, communicate, communicate! There is no greater skill than that of communication — especially as someone who is new to the workforce.”

Although it may sometimes feel uncomfortable, she adds, often times challenges or dilemmas could have been avoided if there was more communication.

Jose Borbon, CPA, assistant vice president/senior auditor at Kearny Bank, adds that joining organizations such as the NJCPA and the American Institute of CPAs are best practices. “Becoming a newly licensed CPA and making the transition from the classroom to the corporate office can be overwhelming. Almost overnight you have people asking you all kinds of questions on various topics simply because you are now a CPA,” he cautions. To alleviate some of that burden and to gain confidence, he suggests that young professionals read the Journal of Accountancy and New Jersey CPA. MANAGERIAL MOVES As new managers take the reins of their new position, a lot can slip through the cracks if they are not careful. Speaking from experience, Borbon says, “Mismatching assignments with those tasked to perform them is one of the rookie mistakes new managers often make. To delegate effectively, a manager must take the time to

DEBORAH SCHAUB, CPA, CTC Founder C&B Accounting

get to know the members of the team and their skillsets.” This “matching” approach helps to maintain organization, save time and increase productivity, he adds, noting that it is likely that a staff member will be more motivated to work on an assignment that better fits their qualifications.

PRIVATE/PUBLIC SWITCH OFF For those making a move from a niche private practice or industry job to managing a full client workload in public accounting, such a switch can be challenging. As Stephanie S. Danos, CPA, a senior forensic associate at Withum who recently transitioned from a financial reporting role in the private sector to a forensic and valuation role, explains, “My first interview for this role concluded with a warning that juggling a workload full of varying client deadlines and impromptu tasks would most likely be my biggest hurdle. Boy, was that an understatement!”

The private sector, she notes, comes with few surprises since timelines are known well in advance and work tasks tend to be repetitive in nature. Fast forward to a full-service accounting firm, and things are quite different. “I’ve always been a task-oriented individual, but this role in particular has made me kick up my to-do list skills to the next level,” she says.

“As all my fellow spreadsheet-loving accountants will agree, Excel is an amazing tool for organizing large quantities of data with great amounts of detail. When juggling so many different projects at once, details are crucial to ensure all deadlines are met and long-term projects stay on task.” And she also credits effective communication and countless cups of caffeine as having proven successful in navigating public accounting client workloads.

RETIREMENT, SUCCESSION AND BEYOND Whether one is close to retirement or a few years away, it’s never too early to start planning. While it can mean different things to different people — such as fully retired or taking up some sort of teaching or consulting endeavor — retirement and succession planning

involves careful consideration by all transitioning into this stage.

“Retirement approaches faster than you think,” says Deborah Schaub, CPA, CTC, founder of C&B Accounting. “Carefully consider your options when selling or transferring your hard-earned business — especially if you plan on using the resulting income to enhance your lifestyle after retirement.” According to Schaub, there are many common pitfalls to avoid. These, she says, include not understanding after-tax cashflow needs for retirement, expecting an all-cash deal, only speaking with or seeking an owner-prospective buyer and lack of preparation.

So what’s the best plan of action for retirement and succession planning? “Begin strategizing five years before you plan to retire so that everyone knows what to expect,” says Schaub, noting one has to be proactive in creating a plan. She uses the following considerations when talking to clients, which are also applicable to CPAs approaching retirement: y Understand choices for long-term financing. y Cultivate staff to grow into new positions of responsibility. y Consider rewards for key employees (this could include plans for phantom stocks and vesting schedules). y Educate oneself on the business’s full value. y Practice an annual hypothetical exercise to review operations, profits, earnings and debt covering three to five years of data so that the information can be shared with potential buyers.

Cristello agrees. “Every firm will eventually be sold, whether proactively or reactively. For the sake of the owner and their legacy, I would recommend proactive steps to succession planning. The first step is getting all the institutional knowledge out of your head. Create checklists and templates for as much as you can. Ideally, start delegating or coaching team members to take 10 to 20 percent of your workload ASAP.” This plan of action, he adds, will provide the space to identify, nurture or recruit a new partner or leader.

NEW JERSEY CPA | SEPTEMBER/OCTOBER 2020

11

ACCOUNTING, AUDITING & ATTEST

The Critical Role of Internal Control

BY LAURA M. CROWLEY, CPA, AND REGINA C. BALAGTAS, CPA, CITRIN COOPERMAN

Every business — large or small — needs internal controls for operational efficiency.

Internal controls are: y Checks and balances that help to ensure assets are protected from theft or malfeasance and financial reports present a complete and accurate record of all transactions y Policies and procedures that ensure duties are properly segregated among the employees and that proper oversight and monitoring are occurring.

Both manual procedures and digital processes that relate to controls at both the entity level and the activity level.

INTERNAL CONTROL FRAMEWORK There are five components of internal controls as defined in The Committee of Sponsoring Organizations of the Treadway’s (COSO) Internal Control – Integrated Framework: y Control environment y Risk assessment y Information and communication y Monitoring y Control activities This framework guides entities in the design, implementation and evaluation of their system of internal controls. It demonstrates that the system of internal controls is not just the individual activities that are performed on a regular basis but the overall environment in which those control activities take place, including management’s attitude, the risks applicable to the business and the flow of information throughout the organization. All of these factors inform the appropriate design of internal control activities, mitigate the greatest risks and ensure the proper reporting of financial information for the entity.

KEY CONTROLS The most important controls for an entity are key controls because they are steps within the process that address the risks of what could go wrong during transaction

12

processing and financial statement preparation. It is very important that these controls are designed effectively and are properly implemented; failure to do so could materially affect the relevant assertions, as errors could go undetected. For small businesses, there may only be one key control that can fully address the control objective, such as management’s oversight of the financial reporting system. However, for larger companies, some key controls must be combined with an indirect or complementary control to meet its objective.

Complementary controls are controls over the accuracy and completeness of information used in the performance of key controls, IT general controls, segregation of duties and the control environment.

DESIGN Depending on its objective and design, key controls could be performed routinely on a periodic basis and are primarily performed by supervisory personnel. Examples include requiring two signatures when

SEPTEMBER/OCTOBER 2020 | NEW JERSEY CPA

issuing a check over a certain amount, bank reconciliations and the review of the monthly reporting package. Moreover, there are some key controls that are not performed by an individual but instead by an IT program. Examples include programmed restriction access for users, programmed detection of edit routines or unusual inputs and/or generation of unusual activity or error reports.

As previously noted, key controls should be well designed and properly implemented to be effective. The best way to test this is with a top-down approach, which starts with determining how well the entity-level controls are designed and whether or not they are properly implemented. If they are not, then the activity-level key controls will not be able to meet their objectives, no matter how well designed and properly implemented they may be. From the auditor’s perspective, this approach is very cost effective and is the most efficient way to determine if testing these controls is productive. Although many auditors would

ACCOUNTING, AUDITING & ATTEST

rather test transactions substantively, testing controls provides more assurance than performing substantive testing alone.

TESTING There are many ways to test key controls: an inquiry with the client or appropriate individual performing the key controls, observation during fieldwork or virtually, or obtaining and inspecting reports or documents. For key controls combined with complementary controls, the auditor should determine whether to test those along with key controls.

There can be confusion when differentiating key and complementary controls from processes. Processes are necessary steps to execute the transaction; they do not prevent or correct a material misstatement relevant to the assertions. Examples include preparing batch deposit slips and depositing checks, coding an invoice, mailing out checks and preparing reports. These routine processes ensure that the transaction is executed; however, the review and monitoring

activities surrounding these processes are the key controls.

Understanding the design and implementation of internal controls is important for auditors and their clients’ management. Distinguishing between entity- and activity-level controls, and key, complementary and process controls, helps to ensure the system properly captures financial information and guides the auditor in efficiently assessing and testing audit assertions.

Laura M. Crowley, CPA, is a director with Citrin Cooperman focusing on audit and financial reporting with diverse experience serving closely held corporations, partnerships and not-for-profits, as well as employee benefit plans. She is the leader of the NJCPA Accounting & Auditing Standards Interest Group and can be reached at lcrowley@ citrincooperman.com. Regina C. Balagtas, CPA, is a supervisor with Citrin Cooperman, providing attestation and advisory services to a diverse clientele.

She is a member of the NJCPA and can be reached at rbalagtas@citrincooperman.com.

LEARN MORE NOV. 2, WEBCAST K2’S SMALL BUSINESS INTERNAL CONTROLS, SECURITY, AND

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ON DEMAND y Internal Control Fundamentals y Internal Control Testing for Operating Effectiveness y Internal Control Advanced Concepts y Communicating Internal Control Deficiencies y Value-Added Internal Control Communications

Register at njcpa.org/events

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BECOMING A CPA

The Value of Internships

BY STEVEN BUDRYK, MS, TRAPHAGEN & TRAPHAGEN CPAs, LLC

One of the biggest accomplishments during a college student’s career is obtaining that coveted internship. An internship not only helped me grow personally and professionally, it also exposed me to great learning and networking opportunities. It was an invaluable piece of my puzzle for passing all parts of the CPA Exam!

An internship is on every student’s mind — something that will jumpstart their professional career and supplement their courses to provide them a holistic approach for their major. The value of internships today cannot be understated.

On average, students with internship experience receive more job offers.

According to a study on the class of 2019 by the National Association of Colleges and Employers (NACE), “graduating seniors who applied for a full-time job and participated in an internship received 1.17 job offers; those who did not have an internship received 0.98 offers.”

We must look at internships through the eyes of the student and employer because when they work in tandem everyone benefits. Students apply for internships to put what they have learned into practice. The on-the-job learning reinforces what they see in the classroom and teaches them invaluable skills like time management, communication, working with others, problem-solving and, most importantly, the willingness to learn.

Problems are solved by thinking outside of the textbook instead of relying on one.

HOW IT BENEFITS STUDENTS Looking at any job site, most of the time one will hit a barrier to entry due to the experience requirement — something college students do not have. An internship is a way around that as more and more firms hire their interns after the internship ends.

Everyone needs to start somewhere. I remember walking into my college’s career day and seeing a plethora of accounting firms. I told myself: “You need to work as hard as you can to get one chance. Market yourself based on your prior personal

14

and professional experiences that you can commit and fulfill an employer’s responsibilities. Then, each day, prove to them and yourself that you can successfully complete any task assigned.” For those currently going through this process, always ask questions and know this is your opportunity to shine. Whether or not you are given performance evaluations during your internship, treat every day as if you are being reviewed. You will set expectations of yourself that will exceed anything you previously thought possible. That is where you truly build your value as a professional.

HOW IT BENEFITS EMPLOYERS Interns can help with anything from scanning accounting records or other documents to working on tax returns and accounting engagements. The opportunities are endless; students just need to be given the chance to prove themselves.

When the time comes for companies to hire, the transition to full-time status is seamless for many interns as they already understand internal processes and clients.

Training new hires can get expensive, so hiring from within is very advantageous.

Employers also need to spend time with interns to gauge their career interests.

Whether that is graduate school or the CPA Exam, employers must take an interest in students’ decisions because

SEPTEMBER/OCTOBER 2020 | NEW JERSEY CPA

once that bond solidifies, their productivity will grow exponentially. That intrinsic value cannot be reviewed on a billing draft — rather it can only be seen in practice. If done correctly, an internship program at a company will produce positive outcomes for years to come. The employer will develop relationships with those interns, who will then use those references for the future. Employers will also become closer with the schools those students are from and could help get interviews for open positions.

Thus, internships are a two-way street: students obtain that coveted on-the-job experience and employers gain potential full-time workers. With the right interns and company, the value of an internship will never be understated.

Steven Budryk, MS, is an accountant at Traphagen & Traphagen LLC. He can be reached at steven@ tfgllc.com.

DO MORE USE NJCPA LAUNCHPAD TO SEARCH INTERNSHIPS AND POST YOUR INTERN RESUME launchpad.njcpa.org

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BUSINESS MANAGEMENT

Determining Choice of Entity

BY BENJAMIN ASPIR, CPA, MST, EISNERAMPER LLP

“How should I structure my business?” is one of the most common questions a CPA will be asked. Choosing an entity structure has farreaching consequences, including tax and legal implications. There are at least a half a dozen different business structures that can be chosen. This article will focus on the three most prevalent structures: LLC taxed as a partnerships, C corporations and S corporations.

The chart to the right summarizes some key considerations when deciding on an entity structure. A few additional points should be considered: y If the business is planning an initial public offering, a C corporation is often the only viable choice. y Real estate should generally not be held by a C or S corporation as contributions and/or distributions of the real estate may accelerate tax. y A business operating in many states may consider a C corporation in order to reduce the state tax compliance burden to its owners. y The number and types of shareholders of an S corporation are limited whereas there is no such limitation on a C corporation or an LLC taxed as a partnership. y Certain investors (such as tax-exempt entities) tend to avoid investing directly in partnerships because they might be subjected to adverse income tax consequences. y LLCs generally are the most flexible in terms of ownership and distribution preference. However, they are more complex from a tax perspective.

It is important for CPAs to keep in mind that a choice-of-entity decision is not driven solely by tax considerations. The optimal choice of entity comes down to many factors. A full analysis should be performed to understand a client’s current and future goals for their company.

Benjamin Aspir, CPA, MST, is a senior manager at EisnerAmper LLP. He is a member of the NJCPA Emerging Leaders Council and Cannabis Advisory Group. Benjamin can be reached at benjamin. aspir@eisneramper.com.

LLC

S CORPORATION

C CORPORATION

Liability protection

Generally limited to committed capital

Generally limited to contributed capital

Generally limited to contributed capital

Company control

Varies depending on the operating agreement

Voting and non-voting shares allowed

Voting and non-voting shares allowed

Distributions — flexibility

Can vary by operating agreement

Distributions must be ratable based on stock ownership

Can vary by class of stock

Top tax rate

37 percent

37 percent (unless the S corporation is subject to built-in gains tax)

21 percent on any dividends distributed

Basis

Partner has basis in equity plus partner’s share of debt Contributions/ distributions and income/loss affect basis

Owner has basis in equity plus direct shareholder loans to corporation.

Contributions/ distributions and income/loss affect basis

Cost of stock purchased

Adjustment of inside basis to equal outside basis

§754 election or mandatory basis adjustment

None, however, flow-through gains will increase outside basis.

None

Allocation of income/ losses

Partner’s share of income/loss is flexible under §704(b)

Shareholder’s share of losses is determined on per-share, per-day basis.

None

Fringe benefits to owners

Taxable

Taxable for >2 percent shareholders

Fringe benefits not included in shareholder income

Employee equity compensation

Profits interest not taxable

Bargain element taxable to employee and deductible to corporation

Bargain element taxable to employee and deductible to corporation

20-percent qualified business deduction (if business meets criteria)

Yes

Yes

No

Self-employment (SE) tax/net investment income tax (NII)

SE to owners who materially participate but generally no NII

Generally no SE/NII tax for shareholder who received reasonable compensation and materially participates

Salary subject to FICA & Medicare.

All dividends subject to NII.

Sale of interest

Salary subject to FICA & Medicare.

All dividends subject to NII.

Capital gain

Capital gain

Qualified small business stock exclusion (§1202)

No

No

Yes

Treatment of redemption proceeds

A mixture of ordinary income and capital gain

Capital gain

Capital gain

Estate planning

Flexible

Very limited

Flexible

NEW JERSEY CPA | SEPTEMBER/OCTOBER 2020

15

FINANCIAL PLANNING SERVICES

5 Estate Planning Strategies in Light of the SECURE Act

BY SHARIF A. MUHAMMAD, MBA, CPA, MST, CFP®, UNLIMITED FINANCIAL SERVICES LLC

On Dec. 20, 2019, the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) was signed into law as part of the Further Consolidated Appropriations Act of 2020.

In a partial summary, the SECURE Act promulgates the following changes to retirement plans (particularly IRAs): y The age at which required minimum distributions (RMDs) begin changed from 70½ to 72. y Contributions to traditional IRAs can now occur after the age of 70½ to match the unlimited age limit on ROTH contributions. y Qualified charitable contributions (QCD) are offset by post-70½ tax-deductible IRA contributions. Without getting into the minutiae of calculations, QCDs can be made at 70½ instead of 72 with one caveat — the contributions no longer avoid tax recognition to the extent of cumulative post-70½ IRA contributions made by the taxpayer. y Prior to the SECURE Act, IRA beneficiaries were allowed, if they chose, to “stretch” RMDs from inherited IRAs over their respective lifetimes. Under the new rules, with certain exceptions, the stretch provision is now replaced with a 10-year window for completely distributing the contents of the account.

With the changes to the stretch provisions for traditional IRAs, a valued strategy that many families relied upon as part of their estate plans was essentially erased with the stroke of President Trump’s pen.

Many clients are now wondering what actions should be taken to ensure that the estate plans they developed prior to the SECURE Act are still effective. With a focus on inherited IRAs and the dissolution of the stretch provision, following are five potential estate planning strategies.

1. ACCELERATE ROTH CONVERSIONS One strategy that can be utilized is to begin converting traditional IRA holdings

16

into a ROTH IRA and bequeath it outright, or name an accumulation testamentary trust as the beneficiary of the ROTH (for the benefit of the designated beneficiary), and through such trust, dictate tax-free distributions per the deceased owner’s wishes. The IRA owner can use the IRS life expectancy tables to create their own stretch IRA for the trust beneficiary (or beneficiaries, if applicable).

2. UTILIZE A CHARITABLE REMAINDER TRUST (CRT) Another strategy for consideration involves the tax free, lump-sum distribution of an inherited IRA into an irrevocable CRT that names designated beneficiaries as income beneficiaries and a charitable organization as the remainder beneficiary. Conceptually, the CRT will make distributions to the beneficiaries of an IRA for up to 20 years (or the life of the beneficiary, whichever is shorter) with the remainder going to the charity named as the remainderman.

There are complexities in structuring the CRT and maintaining its IRS compliance (i.e., the 10-percent remainder test) as well as potential drawbacks

SEPTEMBER/OCTOBER 2020 | NEW JERSEY CPA

such as 1) distributions being limited to income (principal distributions not permitted) and 2) the disinheritance of successor beneficiaries due to the mandatory payment of the trust assets to the charity upon the death of the beneficiary.

3. MULTI-BENEFICIARY TRUSTS Multi-beneficiary trusts can be utilized to allow designated beneficiaries to potentially benefit from inherited IRAs bequeathed to both them and an eligible designated beneficiary, such as a disabled or chronically ill person.

The structures could be in one of the following forms: y A bifurcated trust, where the conduit trust (and stretch portion) pays out to the eligible designated beneficiary, and the accumulation trust pays out to the designated beneficiary under the 10-year rule y A sequential trust, where payments are made first to the eligible designated beneficiary under the stretch provisions and then to the designated beneficiary under the 10-year rule upon the death of the first beneficiary

FINANCIAL PLANNING SERVICES

4. LIFE INSURANCE Generally, life insurance can be used to act as a hedge against the adverse effects of the SECURE Act. By taking distributions and using part of those proceeds to pay life insurance premiums on permanent life insurance (which can be housed in an irrevocable life insurance trust) with a face amount that covers, at a minimum, the account size set aside for bequeathment, the IRA owner can not only gain peace of mind with the fact that the asset won’t fluctuate in value, he or she will also be pleased that such an asset is being passed on to heirs without the burden of taxes.

5. KEEPING THE STATUS QUO In some situations, things might be just fine with the new rules in place. The 10-year rule might work as an alternative to the stretch provision of the IRA, and certain alternative planning may

work for clients for one or more of the following reasons: y Many IRA beneficiaries do not stretch their inherited funds. y For those that do stretch their IRAs, many exhaust their accounts within 10 years anyway. y Given the size of the account, taxes and expenses of certain strategies, the status quo is considered to be the path of least resistance.

Regardless of the strategy chosen, it makes sense to sit down with clients to ensure that their plans contemplate all relevant variables and make sense in light of their financial goals, wishes and financial situation.

Sharif A. Muhammad, MBA, CPA, MST, CFP®, is the managing member of Unlimited Financial Services LLC. He is a member of the NJCPA State Taxation, Federal Taxation and Cannabis interest groups and can be reached at smuhammad@unlimited-financial.com.

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FIRM MANAGEMENT

Plan Now for the Successful Transition of Leadership

BY MARTIN C. McCARTHY, CPA, CCIFP, McCARTHY & COMPANY

Although most firms have a formal business plan, few have a transition plan — which is equally important. While a business plan focuses on the current direction of the firm, a transition plan focuses on the future of the business. It dictates how ownership of the firm will transition to the next generation of leadership when partners decide to retire or must leave due to unexpected circumstances.

CONSIDERATIONS Transition planning is a process that requires proactive and open-minded leadership with the ability to see beyond what might be expected. Consider how the transition will impact the following: y Family relationships and finances y The firm’s culture y Employee retention and engagement y Client relationships and engagements y Client acquisition and loyalty y Brand equity y Thought leadership y The entity’s structure y Future earnings and the value of the business Transitioning leadership is a business decision. Partners should discuss with each other and key employees their expectations, vision for the firm and the intent of the transition plan. Partners should have the opportunity to voice their opinions and decide if they buy into the plan. If needed, arrangements will have to be made to buy out partners who decide that the transition plan is not in their best interests and it is better to leave the firm.

IDENTIFYING THE NEXT LEADER A strategic plan should clearly identify the capabilities, roles and talent needed to lead the firm. It is important to match potential candidates’ temperament and skill set to do the job. Money and resources will be invested in grooming the successor. Make sure you have the right person for the job.

Family-owned firms may want to transition leadership to the next generation. Un-

18

fortunately, a family member(s) might not be interested, or if they are, they might not have the right skills to take over the firm. If a relative is not qualified for the position, they should not be considered.

Another person inside of the firm might prove to be a better option. Or, if the right talent is not in-house, hire someone or look for a merger partner.

PREPARING FOR THE TRANSITION Strategic firms identify talented and capable leaders five to 10 years before they are needed to serve. It could take this long to prepare the right person for the job. A formal development program is recommended to ensure that the successor is ready when the time comes. This could include the following: y Formal leadership training y On-the-job training y Specific, measurable, attainable, realistic and time sensitive (SMART) career advancement goals y Mentoring y Shadowing y Executive coaching y Talent assessments y Relationship transition planning It is also advisable to have the new leader in place at least one year before a partner leaves the firm to ensure that the transition goes smoothly. This is especially important when transferring client relationships.

TRANSITIONING RELATIONSHIPS Most clients are with a firm because of the relationship they have with the engagement partner. It is important that the person taking over the account relationship is someone who the client knows, likes and trusts. Otherwise, the firm could be at risk of losing the client.

Introduce the person at least five years before the transition. Have them shadow the retiring partner. Include them in all meetings and correspondence, and ask their opinion when making important decisions.

Gradually give the person more and more

SEPTEMBER/OCTOBER 2020 | NEW JERSEY CPA

responsibility for the relationship. Again, have the person in place for a year before leaving to ensure everything goes well.

FINANCIAL IMPLICATIONS Determine the fair market value of the firm five years before the transition. A proper business valuation should be done.

Partners need to know exactly how much the firm is worth before implementing a transition plan.

Consider how the transition plan will fund partner retirements and provide financial security for their families. Partners should discuss the transition plan with their lawyer, insurance agent and financial advisor to ensure that the plan is viable and can be executed according to their wishes. It is also a good idea to address retirement and estate planning before the transition.

Martin C. McCarthy, CPA, CCIFP, is the managing partner of McCarthy & Company, a leader in construction accounting. He can be reached at Marty.McCarthy@MCC-CPAs.com.

READ MORE FIRM MANAGEMENT ARTICLES AND RESOURCES njcpa.org/topics/firmmanagement

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INDUSTRIES

Creating a Clearer Picture of Expenses for Nonprofits

BY TARA E. DEL GAVIO, CPA, SOBELCO LLC

In 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2016-14, “Presentation of Financial Statements of Not-for-Profit Entities,” which, among other changes, mandated the creation of a statement of functional expenses for nonprofits. This ASU, effective for fiscal years beginning after Dec. 15, 2017, has had significant impact on nonprofit organizations of all sizes.

ALL NONPROFITS ARE AFFECTED Because the statement of functional expenses had previously been required only under certain circumstances, most nonprofits were not concerned about the details surrounding the classification of expenses. But with ASU 2016-14 came a broader approach, expanding the changes to financial statement reporting in order to include all nonprofit entities for the first time.

Under this new standard, FASB made it clear that nonprofits would be expected to answer this key question: What impact is the money that is being spent having on the organization’s essential purpose? To provide an accurate answer, nonprofits have to record expenses based on what purpose they serve in the nonprofit. Organizations have to categorize expenses, assigning the costs to the appropriate “buckets.” Thus, every organization is required to demonstrate the relationship between functional expenses and natural expenses, providing the information in a statement of activities, in the financial statement footnotes or in a separate statement of functional expenses.

The FASB’s objective in announcing this major change was to ensure that nonprofit leaders, and others with decision-making responsibilities, take into careful consideration the allocation and reporting of functional expenses when reviewing their financial situation. By doing so, the organization gains a much more accurate assessment of how their expenses are apportioned across the various departments and has a clearer picture of the true costs of achieving their mission.

The updated financial statement presentation helps nonprofit boards and staff in decid-

ing whether to continue supporting a program, invest in a new program or eliminate one that is no longer fiscally strong. These types of crucial decisions can now be determined based on facts — and not on supposition.

NATURAL CLASSIFICATION VERSUS FUNCTIONAL CLASSIFICATION In preparing a nonprofit’s financial statement, three functional areas are defined based on their purpose within the organization: general and administrative (G&A), programming and fundraising. These are the core groups of activities that form the basic foundation of any nonprofit. Collectively they ensure that the nonprofit functions effectively and efficiently, always moving towards accomplishing their mission and vision.

G&A typically is comprised of the day-today activities that support any organization, while programming and fundraising are self-explanatory. A good balance should ensure that investments are made in each category so that there is less likelihood of over or under spending on key areas. For example, low costs attributable to G&A, while possibly seeming to be a show of extreme efficiency, may actually be masking a lack of investment in a strong infrastructure. Similarly, too few expenses around fundraising initiatives, once carefully examined, may indicate a lackluster approach to revenue generation.

Natural expenses, on the other hand, include generic costs that all organizations incur such as rent, utilities and telephone, technology, professional fees, interest, salaries, insurance and benefits, and repairs

and maintenance. These expenses can be distributed directly to a specific functional area or they may be allocated across one or more of the functional areas as determined by the leadership and their advisors.

As an example, accounting fees are typically all directly chargeable to the G&A area, whereas salaries could be distributed to G&A, programming and fundraising, depending on how much time is spent by the employees in each of these functional areas.

DETERMINING ALLOCATIONS Whether directly assigned to one function, or divided among a combination of two or three, the calculation method applied must be reasonable, as well as consistent, from year to year. There are different approaches that can be applied when allocating natural expenses including employee head count or square footage.

Different strategies will be more or less effective depending on the attitude, culture and capabilities of the nonprofit. But based on the expectations of FASB, no matter what strategy is utilized, the allocation of natural expenses must be conducted using efficient and transparent record keeping, good judgment, discipline and a comprehensive approach that takes many different methodologies into account.

Tara E. Del Gavio, CPA, is the senior audit manager in the Nonprofit & Social Services Practice at SobelCo LLC. She is a member of the NJCPA Nonprofit Interest Group and can be reached at tara.delgavio@sobelcollc.com.

NEW JERSEY CPA | SEPTEMBER/OCTOBER 2020

19

Planning Strategies Federal Compliance Local Compliance State and Federal Broad Overview

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SEPTEMBER/OCTOBER 2020 | NEW JERSEY CPA

PROFESSIONAL DEVELOPMENT

Networking is Now More Essential Than Ever

BY EILEEN MONESSON, CPC, PRCOUNTS

By the time the coronavirus pandemic hit, we were full swing into networking season. Most of us had decided which conferences we were going to attend.

Some people had speaking engagements lined up. The rest of us already scheduled months’ worth of networking activities on our calendars. Then the pandemic hit, and everything was cancelled. In-person meetings were changed to Zoom events.

Now we spend time in front of the computer trying to develop business opportunities and nurture relationships instead of in a restaurant.

Although Zoom is one of the most popular programs for networking and webinars, there are many others.

These include, but are not limited to, GoToWebinar, WorkCast, ClickMeeting, BigMarker and WebinarJam. Each of these platforms has a variety of features such as screen sharing, live chat messaging, breakout rooms, polls, event recordings, password protection, and data and analytics.

DIFFERENT CAN BE BETTER Networking online is different than networking in person. In a group event, you do not have the freedom to have a personal conversation with someone. Although you can send a private chat message, it is different than sitting down for a conversation. You would have to invite the person to a private online meeting.

Zoom meetings are ideal for one or many speakers. Either a speaker presents a webinar or a facilitator moderates a program. Speakers may open the meeting for discussion or have participants enter questions into the Q&A or chat feature for them or someone else to answer.

People are typically muted until it is their turn to talk. As you might expect, certain people will monopolize a conversation based on their own agenda while others do not get the opportunity to speak. Facilitators should control the flow of the conversion by establishing guidelines such as limiting the amount of time each person can talk.

HAVE GUIDED CONVERSATIONS An online networking meeting can be just as valuable as an in-person meeting.

If the meeting is small enough, participants can present their value proposition to everyone in attendance. Large meetings can use breakout rooms for people to have more intimate conversations. Facilitators can structure the conversation by limiting the discussion to four questions: 1.

2.

3.

4.

Who are you?

What do you do?

Who would you like to meet?

How can I help?

The answers to these questions tell the audience what they need to know about you. It is best to be specific. Give your name, title and company. Explain the value that you bring to a client relationship from his or her perspective, what you specialize in and why it is important.

For example, you could say: “Hello, I am Jean Smith, managing partner of ABC Accounting, one of the top 50 construction accounting firms in the U.S. I help contractors take advantage of tax elections so they have the cash needed to operate and expand their business. I would like to meet general contractors and subcontractors that work in the industrial sector.

You can help me by making a virtual introduction to roofing, HVAC and other contractors that have the capacity to take on more business.”

The person listening to this introduction knows who Jane is, what type of clients she works with and who she would like to meet. Jane could take it a step further and say she is looking for green builders.

Networking is all about helping others. Accountants who approach networking with the mindset of “who can I help today” instead of “who can I do business with today” will achieve a higher level of success.

The important thing is to share resources and follow through. Online meetings are perfect for follow up. You can schedule a meeting with anyone regardless of their location and invite people who would gain value by meeting them. Make it fun by hosting a virtual party or dinner. Just because COVID-19 is restricting our activities does not mean that we must stop meeting people and networking. All we have to do is be more creative.

Eileen Monesson, CPC, is the CEO of PRCounts, a brand engagement company. She can be reached at emonesson@PRCounts.com.

LEARN MORE SEPT. 18 OR OCT. 13, WEBCAST EFFECTIVE NETWORKING: TAKE CONTROL OF YOUR CAREER SEPT. 28 OR OCT. 23, WEBCAST SOLIDIFY YOUR SUCCESS: POWERFUL PERSONAL BRANDING njcpa.org/events

NEW JERSEY CPA | SEPTEMBER/OCTOBER 2020

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RISK & COMPLIANCE

Risky Business: Risk Management Lessons from COVID-19

BY JOSEPH F. HOWE, CPA, CFE, CGFM, ED.D.

Back in January, I volunteered to write this article on risk management. In March, the very definition of risk management changed for all of us when COVID-19 hit the state.

Quarantine has given me more time to do one of my favorite things: listening to audiobooks on the topics of economics and finance. As I listened, I realized that there is a lot we can learn from these disciplines on how to assess and manage risk.

During the pandemic, the risk management decisions CPAs have faced both personally and in business have been complex, time sensitive and based on very limited and rapidly changing information.

When decisions have to be made under these constraints, the field of behavioral economics calls it bounded rationality.

Simply put, one can’t possibly know every potential outcome of the choices one makes and doesn’t make. Therefore, decisions are made based on the information on hand using, among other things, rules of thumb from one’s prior experiences and the experiences of others.

Extensive research studies will likely be conducted on why toilet paper became such a hot commodity. Was stockpiling toilet paper a rational response to the pandemic? Retrospect will tell us “probably not,” but no one knew that at the time — and no one wanted to be left without toilet paper! Often risk, by its very nature, is dealing in the unknown.

How then does one manage risk?

Heuristics are experiences that are used to inform future decision making and behavior. For example, young children learn not to touch the stove because it is hot and can burn them. One touch of the stove when it is on and one most certainly knows never to intentionally touch it again. By extension, people learn

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not to touch other things that are hot, because they too can burn. One knows this without having to touch everything that is hot.

Experiences during COVID-19 have provided a heuristic on responding to pandemics, and this will certainly inform society’s response to future pandemics.

However, some important generalizable risk management practices have also been learned and have formed a new heuristic on responding to any number of crises. When it comes to general liability, business continuity and financial management, there are some best-practice processes that should be considered for future incidents.

GENERAL LIABILITY RISK When reviewing guidance handed down from the state or other health authorities, read the word “recommended” as “required.” Think of the worst-case scenario where a claim is made against a company that has to defend itself at a trial. Would the company be able to justify all the steps to reduce risk that it took or didn’t take?

Note that this shouldn’t be construed as legal advice, but it would seem that by taking all the steps that are recommended by an authoritative source, it would be hard to find negligence.

This is not just limited to a pandemic.

Negligence is often legally judged by what an objectively reasonable, prudent person would do in that situation.

Pointing to authoritative guidance will help to prove that a company’s decisions were not arbitrary and the company acted prudently and in a manner in which similarly situated professionals would act. When thinking about ways to reduce liability, some questions to ask are: y Does your business have up-to-date standard operating procedures? Have all employees been trained on them? y Are all of the business’s practices con-

SEPTEMBER/OCTOBER 2020 | NEW JERSEY CPA

gruent with industry standards? y What type of legal claims are being filed against similar businesses? y Are you regularly reviewing business practices with legal and insurance advisors to minimize risk? y Is the entity in compliance with all the covenants of your insurance policy to obtain coverage under the policy in the event a claim is filed?

BUSINESS CONTINUITY Business continuity had previously been focused on how to continue operating a business when it is faced with a catastrophic event such as a fire or flood. In those disaster scenarios, the damage and effect is often localized to an individual business or region. Not many business continuity plans considered how to run a business when the whole world has to shut down. Technology clearly plays a critical role in helping to operate businesses remotely. During the pandemic, some or all business functions had to be performed remotely for extended periods of time. Beyond that, the fragility of supply chains was exposed. Materials that used to take a day or two to receive were taking weeks or months to come in. To evaluate continuity of operations, consider the following: y Does your technology infrastructure support a majority of operations being performed remotely? y What redundancies are in place from the perspective of both human and technology functions? y What critical jobs must be performed onsite? How will you perform them if only a fraction of the staff can come in? y Are all back-office functions able to be performed remotely, such as payroll, benefits and audit? y Where do all of your supplies and materials come from? Are there alternate suppliers that can provide

RISK & COMPLIANCE

the necessary goods if the supply chain is disrupted?

FINANCIAL MANAGEMENT What happens when a company’s revenue unexpectedly takes a significant hit? Small and midsize businesses throughout the state were likely shocked to find out that their business interruption insurance might not cover the loss of revenue from a closure due to a pandemic. While insurance can be a hedge against loss of income, even under the best circumstances, payments are not immediate. To protect against a sudden loss in income, it is important to have an emergency reserve fund. In calculating a reasonable emergency reserve, include the following: y Fixed costs that will occur irrespective of operations, i.e. rental expense. y Payroll and benefits — how long

can you pay employees if money stopped coming into the business?

If layoffs are inevitable, how much runway is needed to pay those associated costs? y Recurring debt and lease payment obligations.

REFLECTION Dealing in the unknown is the essence of risk management. Savvy professionals will use the experiences during the pandemic to improve upon the management of future risk. Before too much time goes by, reflect upon lessons learned and determine how they could be applicable to the entire organization. Reflection and after-action reviews are critical steps great leaders take to enhance risk management.

Joseph F. Howe, CPA, CFE, CGFM, Ed.D., is the CFO of a government entity in New Jersey. He can be reached at jhowecpa@gmail.com.

LEARN MORE

OCT. 19, WEBCAST

ENTERPRISE RISK MANAGEMENT

FOR SMALL AND MEDIUM-SIZED COMPANIES

OCT. 20, WEBCAST

CURRENT DEVELOPMENTS AND

BEST PRACTICES FOR TODAY’S CFOs AND CONTROLLERS

NOV. 9, WEBCAST CONTROLLERSHIP SKILLS UPDATE: RISK MANAGEMENT

ON DEMAND CONTROLLERSHIP SKILLS UPDATE: RISK MANAGEMENT Register at njcpa.org/events

READ MORE RISK AND COMPLIANCE ARTICLES AND RESOURCES njcpa.org/topics/risk

NEW JERSEY CPA | SEPTEMBER/OCTOBER 2020

23

TAX

7 Tips for Navigating the Troubled Waters of Tax Controversy

BY NICOLE DEROSA, CPA, MAcc, WITHUM

Tax controversy can be very unnerving and daunting for businesses and individuals, as most people only hear the worst of the worst and thus view tax notices and audits in a negative light. As a client’s trusted advisor, it is very important for CPAs to take control of the process and work directly with taxing authorities to help keep stress levels at bay. Here are seven tips to help navigate the troubled waters of tax controversy upon receipt of tax notices: y Obtain a signed Power of Attorney. If a client is in receipt of an IRS notice, be sure to obtain a signed Form 2848 which allows the CPA to speak with the IRS on behalf of the client; without this, a CPA will get nowhere. If the client is married and files a joint tax return, be sure to obtain one Form 2848 for each taxpayer and spouse. Every state is, unfortunately, different, so there is no “one-size-fitsall” approach, but some states are not as strict as others and may not require formal authorization for a CPA to act/ speak on behalf of a client. y Call the Tax Practitioner Hotline. Many tax notices can be resolved quickly and efficiently over the phone, rather than in writing via snail mail. Yes, sometimes written correspondence is necessary; however there are also a lot of times where a simple phone call does the trick.

Here in New Jersey, the Tax Practitioner Hotline is very helpful and responsive; several other states are similar as well.

When contacting a taxing jurisdiction over the phone, try calling early in the morning in order to minimize wait times. y Do not ‘put off’ tax notices. Most notices are auto-generated and will have a response date included. This might sound like a no-brainer, but do not procrastinate. Some jurisdictions move through the tax assessment phase to the collections phase faster than others. If a

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taxing jurisdiction allows, ask to “place a hold on the account” and notate the account so that it is documented that the issue is being addressed and worked on.

This can easily be done over the phone. y For all things tax controversy-related — do not over-provide information. If a tax notice (or agent) asks for items A, B and C, do not provide them items A, B, C, D and E. Keep it short, sweet, to the point… and organized. Less is more. y For examinations, establish a relationship with the agent and create a positive first impression. Upon receipt of a “Notice of Examination,” the CPA should contact the agent to let them know who they are and that they will be handling the audit. Open up the lines of communication early on and set the stage so that the examination can progress as efficiently as possible. Don’t make it difficult for an agent to do their job; they are more likely to work with you if a good relationship is established. y For field examinations, the CPA should ask the agent to come to his or her office instead of the taxpayer’s place of business, if possible. If it is necessary that an agent visits a taxpayer’s place of business, make sure the time and date is conducive for the client and that there is a space for the agent to “set up shop.” As a best practice, the taxpayer representative should be present to essentially serve as the go-between throughout the day. y Always request penalty abatement. If a taxpayer has a clean filing history and is in good standing, penalty abatement for reasonable cause is likely. The IRS does have a waiver known as the First-Time Penalty Abatement (FTA) which may be granted to relieve taxpayers from several penalties assuming certain criteria are met (e.g., clean compliance and payment history).

SEPTEMBER/OCTOBER 2020 | NEW JERSEY CPA

Individuals and businesses may request an FTA for any failure-to-file, failure-to-pay or failure-to-deposit penalty. Contact the tax practitioner hotline and speak with a representative to see if the client is eligible to utilize this “get out of jail free” card.

Nicole DeRosa, CPA, MAcc, is a tax manager at Withum. She is the chair of the NJCPA Emerging Leaders Council and serves on the Content Advisory Board. She can be reached at nderosa@withum.com.

LEARN MORE

SEPT. 17, NOV. 3 OR NOV. 20, WEBCAST

IRS TAX EXAMINATIONS AND HOT ISSUES

SEPT. 25, OCT. 26 OR NOV. 28, WEBCAST

HOW TO HANDLE AN IRS CIVIL AUDIT

NOV. 10, WEBCAST

HOT IRS TAX EXAMINATION

ISSUES FOR INDIVIDUALS AND BUSINESSES

Register at njcpa.org/events

TECHNOLOGY & INFORMATION MANAGEMENT

Confidential Communications in a Digital World

BY KAROLIS MATULIS, CPA, CVA, WILKINGUTTENPLAN

CPAs are entrusted with clients’ most private and confidential financial information. While there are a variety of security requirements from various regulatory sources, CPAs should always strive for highest levels of security for all confidential information regardless of formal requirements. For communications to be secure, the recipient’s identity must be authenticated before granting access. As a result, security often creates an extra layer of inconvenience as authentication can be cumbersome. Having the right processes and tools in place can alleviate some of the inconvenience.

There are two main types of digital communication — continuous and sporadic — and both can entail sensitive document transmission. Continuous communication represents the stream of reciprocal communication that CPAs often have with clients and colleagues.

Sporadic communication represents the one-off communication a CPA may have with someone he or she does not interact with on an ongoing basis.

THE PROBLEM Without the right tool, security can easily become a clumsy nightmare. The old method of emailing password-protected/encrypted PDFs entails quite a few extra steps. To reliably authenticate the recipient, the password needs to be transmitted via another secure method such as a phone call. The protected/encrypted PDF method ends up being unwieldy for both the sender and the recipient. The sender has to password protect files and securely transmit the password while the recipient must retrieve the password and unlock the file. It is no surprise that these types of solutions are often disliked by clients and are often abandoned by practitioners.

While there are a variety of platforms and communication options that guarantee a great deal of security and privacy, many of them can create challenges and lack seamless usability. As the goal and

frequency of communication differs per contact, it is no surprise that CPAs often need to use different secure communication tools based on the need.

THE SOLUTIONS Many practitioners are adopting platform-based communication/document exchange tools for continuous communication with their clients. Authentication by these platform-based communication tools is achieved by requiring the parties to create an account and log on to the platform. Once authenticated, the user is able to enter a secure environment and utilize the platform’s communication/ document exchange features. While these platform-based tools are certainly not as seamless as regular email, they are often packaged with additional features that may be useful to both the sender and recipient. Document request lists, organized document repositories (initial documentation and client deliverables) and electronic signatures are just some of the features CPAs may find useful.

However, platform-based tools are typically too bulky for sporadic communications. Recipients do not want to go through the inconvenience of creating an account and password to retrieve a short message or file. These types of communications require a quicker and more seamless communication tool. Email encryption is perhaps the most effective way to preserve convenience while maintaining security. Most providers

allow for the encrypted transmission of both email and attachment. In instances where both users are using the same tool set, the encryption platform can authenticate the sender and recipient seamlessly.

In these scenarios, the emails will be viewable by both sender and recipient as a regular email; if the email is intercepted by a third party, the contents will be unreadable to that unauthorized recipient.

In instances where the recipient is not utilizing the same tool set, the recipient will be prompted to authenticate that they control the email address to which the email was sent.

The new generation of security tools does a good job of alleviating some of the authentication pains, but there is still a long way to go before seamless and secure communication is a reality. Having access to convenient security tools can greatly reduce the inconvenience factor, but it is likely that an organization may need to adopt multiple tools for various modes of communication. Ultimately, all CPAs need to be mindful of the dangers of exchanging confidential information on the open internet. One would never send confidential information in see-through envelopes; the same diligence should be maintained in the digital world.

Karolis Matulis, CPA, CVA, is a supervisor at WilkinGuttenplan. He is a member of the NJCPA Emerging Technologies Interest Group (#NJCPATech) and can be reached at kmatulis@ wgcpas.com.

NEW JERSEY CPA | SEPTEMBER/OCTOBER 2020

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NJCPA NEWS

NJCPA OVATION AWARDS HONOR SUPERSTARS WHOSE EXEMPLARY EFFORTS AND STELLAR ACHIEVEMENTS ARE ADVANCING NEW JERSEY’S ACCOUNTING PROFESSION.

We recognize the high achievers who are emerging leaders, innovators, champions of diversity, educators, volunteers, notable women and other individuals who have made a substantial impact in accounting in 2019/20.

READ MORE ABOUT THE RECIPIENTS AT NJCPA.ORG/AWARDS

LIFETIME LEADER Celebrating the standout NJCPA member of exceptional merit for remarkable contributions to the accounting profession over the course of their career.

WALTER J. BRASCH, CPA, CGMA

CHIEF SUCCESS OFFICER AT PRAGER METIS CPAS, LLC

Walter leads by example. Throughout his long career, he has always taken the time to guide individuals to achieve their goals. As a member of the NJCPA for more than 43 years, Walter has more than proven his dedication to the accounting profession, the Society and his colleagues. As a past president, secretary, treasurer and trustee of the NJCPA, Walter has made his mark on the Society. He is a former chairman of the NJ-CPA-PAC, a former president of the Monmouth/Ocean Chapter and has chaired multiple other NJCPA committees.

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SEPTEMBER/OCTOBER 2019 | NEW JERSEY CPA

Walter J. Brasch, CPA, CGMA

Award

Richard M. Fuchs, CPA Managing Partner - Basking

Jesse M. Herschbein, CPA, CGMA Assurance Manager

all of the honorees!

Advisory Services | Crisis Response |

| Bankruptcy | Business Management | Tax Controversy | Tax Services North America | Europe | Asia NEW JERSEY CPA

| SEPTEMBER/OCTOBER 2020

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NJCPA NEWS

DIVERSITY, EQUITY & INCLUSION Honoring the champions of diversity, equity and inclusion who work passionately to make the accounting and finance profession open, welcoming and fair to encourage and promote initiatives and change, regardless of race, sexual orientation, religion, age, gender, disability status or other dimension of diversity.

IRINA G. BALASHOVA, CPA, CIA, CFE SENIOR ASSOCIATE AT FORENSIC RESOLUTIONS, INC.

As a wheelchair user, Irina works tirelessly to ensure the equal rights of handicapped individuals. She is a married mother of two elementary school children who has proven that disability is not an obstacle — both professionally and personally. In addition to being a member of the NJCPA, the Institute of Internal Auditors, and the American Institute of CPAs, she is also the treasurer of the Lomonosov Russian School of Southern New Jersey.

MARIA MAURICIO, CPA SENIOR ACCOUNTANT AT WILKINGUTTENPLAN

Maria is one of four female co-founders of Professional Filipino American Youth (PFAY), a nonprofit organization that mentors Filipino American college students. She has been involved in the NJCPA Career Awareness Program where she visited her alma mater, Spotswood High School, to talk to accounting students. She was invited to Governor Murphy’s Asian American Pacific Islander Heritage Month celebration in May 2019.

KYLE M. SELL, CPA, CGMA PARTNER AT DELOITTE & TOUCHE LLP

As the 2019/20 NJCPA president Kyle brought diversity, equity and inclusion to the forefront. He regularly speaks on the topic at board and industry meetings. Kyle and his firm contributed $40,000 to the NJCPA Scholarship Fund to support diversity within the profession. As a father of four girls, Kyle routinely makes accounting professionals aware of the need for diversity, equity and inclusion.

EMERGING LEADERS Recognizing savvy superstars who have been working in the accounting profession 10 years or less and have had noteworthy professional accomplishments; combined personal and professional achievements that merit special recognition; and/or actively participated in the advancement of the profession or NJCPA.

MATTHEW R. KMETZ, CPA, MBA PARTNER AT LIZZA, KMETZ & ASSOCIATES LLP

Matthew is a trailblazer — both as a CPA and as a role model for young professionals. He has a passion for the accounting profession and a commitment to the growth of future CPAs. For the past nine years, Matthew has served as the site coordinator for Felician University’s Volunteer Income Tax Assistance program.

He is on the NJCPA Emerging Leaders Council and is a mentor in the scholarship program.

ZACHARY B. COHEN, CPA

AUDIT MANAGER, PRUDENTIAL FINANCIAL INC.

MICHAEL J. DIONISIO, CPA

AUDIT & ASSURANCE MANAGER AT DELOITTE

Whether it’s tax incentives related to student loans, webinars and Q&A sessions regarding COVID-19 and student loans; or reallocating scholarship grants to CPAs, Zack’s dedication to the profession and to the NJCPA is truly commendable. He is an active member of the NJCPA Emerging Leaders Council and co-founded the Student Loan Task Force.

In his eight years at Deloitte, Mike has demonstrated that he is a natural leader. He is a member of its New Jersey Talent Council, a group of high-performing managers who help direct the firm’s leadership. Mike is a coach for five staff members, acting as their advocate and helping to guide them in their career path. He is also a mentor with the NJCPA.

ROBERT N. KUSANT, CPA, CISA, CFE, CAMS

PETER E. MOTSCH, CPA, MBA

VICE PRESIDENT AND SENIOR INTERNAL AUDITOR AT KEARNY BANK

Rob excels in everything he does, which shows not only through his four certifications, but his ability to take on new audit assignments and work on critical bank projects. He has routinely been the point person to ensure tasks are completed and are up to bank standards.

In 2019, Rob received the New Jersey Bankers Rising Star award, recognizing leaders under 40.

AUDIT MANAGER AT FRIEDMAN LLP

Since joining Friedman in 2015, Pete has helped grow its Accounting Services Group from seven clients to about 60. He serves the community in many ways from founding the Montclair State University Young Professionals Board in 2015 to serving as president and helping to establish a scholarship program. Pete serves on the NJCPA Student Programs & Scholarships Committee.

AMY E. JENNINGS, CPA SUPERVISOR AT WILKINGUTTENPLAN

Amy embodies an emerging leader.

She co-leads WilkinGuttenplan’s Future Council, which helps young professionals to be successful over the next five to 10 years.

Amy is also involved in the firm’s Advisory Council, which handles everything from assisting with implementation of new technology to brainstorming efficiencies and CPE scheduling.

PHILIP SOOKRAM, CPA, MAcc

ASSISTANT PROFESSOR OF ACCOUNTANCY AT SAINT PETER’S UNIVERSITY

Philip has had a significant impact on accounting students at Saint Peter’s University. The school’s 2019 accounting majors achieved a placement rate of 100 percent in the National Association of Colleges and Employers Report. Philip also regularly speaks to students about their careers and is active in the NJCPA Emerging Leaders Council.

NEW JERSEY CPA | SEPTEMBER/OCTOBER 2020

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NJCPA NEWS

EXCEPTIONAL EDUCATORS Recognizing full-time college accounting educators who distinguish themselves with their excellence in teaching and prominence in state-wide or regional activity to actively encourage careers in accounting and by serving as role models in academia.

DR. JAMES J. CARROLL, CPA, CMA, CFE, CFM, CFF, CGMA

LEONARD GOODMAN, CPA, PH.D., MBA

ROBERT SCARPA, CPA, MBA

Jim’s career as a full-time university professor spans more than three decades. He is also a frequent instructor and lecturer of CPE courses. Jim was a member of the NJCPA Professional Conduct Committee for 12 years and, after a break in service, was asked to rejoin the committee.

His legacy also includes a textbook entitled Investigating Entrepreneurial Opportunities.

Len has been a professor at Rutgers since 1976.

An inspirational leader with experience in both public and private accounting, he works tirelessly to help his colleagues, his students and those he mentors. Len recently taught Executive MBA students in Mainland China for the Hong Kong University of Science and Technology. He has been the recipient of numerous teaching awards.

Bob brings a variety of experiences to his post at Rowan. Before teaching, he held executive-level positions as controller, CFO and director of finance. He also created a CPA review course and a mock CPA Exam in association with a Surgent review course. Bob is a faculty advisor for three student organizations, and a faculty liaison to the accounting department’s Accounting Advisory Board.

PROFESSOR AT GEORGIAN COURT UNIVERSITY

Congratulations!

We are proud to join NJCPA in honoring Joseph Kyle Sell for their ovation award recognizing their

www.deloitte.com Copyright © 2020 Deloitte Development LLC. All rights reserved.

PROFESSOR AND DEPARTMENT VICE CHAIR AT RUTGERS BUSINESS SCHOOL

ASSISTANT CHAIR AND INSTRUCTOR AT ROWAN UNIVERSITY

IMPACT Recognizing those who dedicate meaningful time and energy to any of the following commendable endeavors: giving back to the community; sharing professional expertise to support others; or advancing the interests and needs of the accounting profession through active engagement, leadership or advocacy.

RICH FUCHS, CPA MANAGING PARTNER AT PRAGER METIS CPAs LLC

Since joining Prager Metis in 2018, Rich immediately embraced his role as managing partner of the Basking Ridge office. His frequent partner and staff meetings have had a significant impact on profitability, client service, culture and business development. In 2019, he was recognized with the first ever Prager Metis Organization & Team Award. He has also participated in the NJCPA Career Awareness Program for many years.

KATHLEEN ALEXANDER, CPA, CFE, MST

CHRISTOPHER COWAN, CPA, CCIFP

CRAIG DALINSKY, CPA, CGMA

Kathleen’s contributions to the NJCPA, the New Jersey Chamber of Commerce and the Commerce and Industry Association of New Jersey (CIANJ) are well known.

She helped enhance NJCPA’s discussions regarding the repeal of the estate tax and was heavily involved with conversations in Trenton. As Treasurer of CIANJ, Kathleen works to be an impactful voice for the business community.

Chris has made an impact on young professionals since 2012 when he was selected as an NJCPA “30 Under 30” award winner. He has since received the Cystic Fibrosis Foundation’s “New Jersey’s Finest Young Professionals” award and the National Association of Home Builders’ “Young Professional of the Year.”

Craig has been a key industry voice on the NJCPA Accounting & Auditing Interest Group for several years including two years serving as the group’s leader. He was also a leader of the FASB Accounting Standards interest group and was the principal author of several comment letters.

PRINCIPAL AT SAX LLP

SENIOR MANAGER AT COHNREZNICK, LLP

JESSE M. HERSCHBEIN, CPA, CGMA

JOHN D. KELLY, JR., CPA, MBA, MAFM

Jesse makes an impact on the accounting profession through all facets of his life — whether it’s in volunteering, advocacy or emerging technologies. He is known to embrace change and rise to challenges, as well as encourage others to do the same.

He is a member of the NJCPA Board of Trustees and is a past president of the Essex Chapter.

He is a 2018 NJCPA Volunteer Award recipient.

In his own words, John “loves helping people,” and those around him are thankful for the help. His work as a member of the NJCPA State Tax Task Force has been invaluable, particularly in liaising with the New Jersey Division of Taxation, where he previously served as a legislative liaison for more than nine years.

MANAGER OF ASSURANCE AT PRAGER METIS CPAs LLC

OWNER AT JOHN D. KELLY CPA LLC

VICE PRESIDENT AT SS&C HEDGE FUND SERVICES

JOSEPH A. McGRATH, JR., CPA AUDIT & ASSURANCE SENIOR MANAGER AT DELOITTE & TOUCHE, LLP

Joe is well known for his dedication to the NJCPA and his alma mater, Lehigh University. He regularly volunteers on Lehigh’s Accounting Advisory Board and helps the accounting department develop their curriculum. At the NJCPA, he has won several awards, including the Volunteerism award, “30 under 30” and a 2019 Ovation Award in the Innovation category.

NEW JERSEY CPA | SEPTEMBER/OCTOBER 2020

31

NJCPA NEWS

BRIAN G. NAFASH, CPA

MANAGER AT MASSOOD & COMPANY P.A. CPAs

Brian has dedicated many years to the NJCPA and the Passaic County Chapter in particular. He is a past president of the chapter and continues his involvement, this year serving as vice president. Brian regularly participates in NJCPA committees and groups, including the Chapter Operations Committee and the Federation Taxation and State Taxation interest groups.

ALAN D. SOBEL, CPA, CGMA

MANAGING MEMBER OF THE FIRM AT SOBELCO, LLC

Inspiring CPAs, accounting professionals and legislators alike, Alan more than made his mark on the profession when he led the charge for the passage of the Pass-Through Business Alternative Income Tax Act. It has the potential to save taxpayers between $200 and $400 million annually since it allows pass-through businesses to pay New Jersey income taxes at the entity level instead of at the personal level.

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STEVEN V. OROHO, CPA, CFP®

NEW JERSEY SENATOR AND INVESTMENT ADVISOR AT STONEBRIDGE CAPITAL MANAGEMENT

As a CPA and CFP, Steve brings a wealth of knowledge to his position as New Jersey Senator for the 24th District, an office he has held since 2008. He also has been the Republican Budget Officer since 2019 and was the Conference Leader in 2018. Senator Oroho has worked closely with the NJCPA and other groups in the support of business-friendly legislation.

JANINE ZIRRITH, PAFM FIRM ADMINISTRATOR AT WILKINGUTTENPLAN

Janine has been with WilkinGuttenplan for over 35 years and has handled every aspect of firm operations including staffing, marketing, human resources and billing. Janine started the New Jersey Chapter of the CPA Firm Management Association (CPAFMA) and was its first president. She went on to become president of the National CPAFMA, eventually being recognized as Administrator of the Year.

SEPTEMBER/OCTOBER 2020 | NEW JERSEY CPA

MARC M. RADIN, CPA

OWNER AT MARC M. RADIN, P.C.

Marc has led the NJCPA Bergen Practitioners Forum for the past two years, a discussion group for public-practice CPAs in Bergen County that provides an invaluable networking and learning opportunity for dozens of small firm practitioners. He has also been vocal about tax issues, helping to write an op-ed critical of the Tax Cuts and Jobs Act’s $10,000 cap on the federal deduction of state and local taxes.

EDWARD K. ZOLLARS, CPA OWNER AT THOMAS ZOLLARS & LYNCH, LTD.

Though based in Phoenix, Arizona, Ed is no stranger to helping CPAs in New Jersey. No one has given out more advice, recommendations or explanations relating to IRS regulations than Ed on the NJCPA Member Open Forum. Always giving his time and intellect, he truly makes an impact on all CPAs with whom he comes into contact.

A Heritage of Excellence A Focus on Results

A Partner for Success

Congratulations!

ALAN SOBEL, CPA, CGMA Managing Member of the Firm SobelCo Impact Ovation Award Recipient

Livingston, NJ | Woodcliff Lake, NJ | Paoli, PA @Sobel_Advisory | 973-994-9494 | SobelCoLLC.com NEW JERSEY CPA | SEPTEMBER/OCTOBER 2020

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NJCPA NEWS

INNOVATION Honoring those who are transforming accounting at lightning speed: driving innovation of all kinds, as it relates to accounting — leveraging new technologies, using forward-thinking data analytics strategies, implementing alternative business models or rolling out experimental engagement strategies to improve employee culture.

MICHAEL LEVY, CIA, CRMA, MBA, CISA, CISSP

DIRECTOR OF FINANCE AND INTERNAL AUDIT AT STUDENT TRANSPORTATION OF AMERICA

Mike has been at the leading edge of the accounting profession in many ways. He serves as a board member of the Institute of Internal Auditors and is frequently cited and published. One of his primary areas of focus is on finance digital transformation and process improvement.

KAROLIS MATULIS, CPA, CVA

SHERRYLL PENNEY

Karolis brings innovation to everything he does at WilkinGuttenplan. He is a guiding force in the firm’s use of data analytics and is also the go-to person for developing and enhancing the tax department’s business returns templates and the automation in trial balance grouping. Karolis is also a mentor to many young staff at the firm.

For the majority of her 20-plus year tenure at MSPC, Sherryll has led engagements implementing accounting software and has streamlined countless processes. She is a Microsoft Dynamics Certified Professional and a Quickbooks Certified Professional. She is a co-founder of the MSPC Executive Women’s Networking Group.

SUPERVISOR AT WILKINGUTTENPLAN

MANAGER OF TECHNOLOGY AND CLIENT SERVICES AT MSPC CPAs

The WilkinGuttenplan Family Congratulates Our NJCPA Ovation Award Winners!

Janine Zirrith Impact Award

Maria Mauricio Diversity, Equity and Inclusion

Jessica Kizmann Women to Watch

Amy Jennings Emerging Leader

Karolis Matulis Innovation

732.846.3000 | wgcpas.com NEW JERSEY I NEW YORK CITY 34

SEPTEMBER/OCTOBER 2020 | NEW JERSEY CPA

WOMEN TO WATCH Applauding the growth and success of female NJCPA members for their leadership, potential, contributions and/or commitment to fostering the success of their colleagues.

AMY BOTH, CPA MANAGER AT WITHUM

Amy exhibits leadership in her numerous volunteer roles with the NJCPA as well as in the accounting industry. She is a member of the Audit, Volunteer Relations, and Student Programs & Scholarships committees and several interest groups. She is also an NJ-CPA-PAC trustee.

Amy not only elevates and is supportive of others, she provides accounting, career and life advice to those she meets.

MELISSA A. DARDANI, CPA

MANAGER OF GLOBAL FORENSIC ACCOUNTING SERVICES AT BAKER TILLY

Melissa has been a highly effective NJCPA representative in front of state leaders and legislators to call attention to the plight of student loan debt holders in the state of New Jersey. Melissa played a pivotal role in the creation of the NJCPA’s student loan debt lottery that will be launched in November 2020. She also is the leader of the NJCPA Cannabis Interest Group.

CATHY DAVIS, CPA PARTNER AT MSPC CPAs

A born leader, Cathy is constantly looking to improve the way things are done in the profession. Having returned to the workforce after raising her son, she worked her way up to partner. As she advanced, she took others with her, mentoring along the way. Cathy is a founder of the MSPC Executive Women’s Networking Group and is a frequent speaker at industry events.

empower others RACHEL F. EFTHEMES, CPA, MST SENIOR TAX MANAGER AT MAZARS USA LLP

Rachel has participated in and led several firm initiatives, including Women@Mazars and Private Client Services for Women. She was a founding member and held several officer positions in the firm’s Toastmasters Club and also participates in the firm’s community volunteer program and other philanthropic endeavors. Rachel was chosen to represent Mazars USA at the Mazars Women’s Global Leadership Seminar in Milan, Italy in 2018.

JESSICA HOFFMAN, CPA

AUDIT SENIOR MANAGER AT DELOITTE

Jessica’s knowledge of audit and accounting never ceases to amaze her colleagues. More importantly, Jessica takes the time to share her knowledge with all levels on her team. One of her most admirable traits is her passion and drive to be successful, as it is fueled by her selfless contributions and constant generosity. Jessica is a leader within the Women’s Initiative Program (WIN) for Deloitte NJ.

Great leaders empower others knowing that success is not only measured by what you accomplish, but also by what you inspire in others. Withum’s Amy Both, recipient of the NJCPA 2020 Ovation Award, makes her imprint every day — influencing today’s professionals to lead though action and passion.

withum.com NEW JERSEY CPA | SEPTEMBER/OCTOBER 2020

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NJCPA NEWS

JESSICA KIZMANN, CPA

MANAGER AT WILKINGUTTENPLAN

ELENA KLARBERG, CPA

SVIATLANA LIPUMA, CPA

Breaking the mold for a traditional CPA, Elena is a role model for all women. Deciding to go back to school later in life and earn her CPA, she truly encompasses a woman to watch.

Elena is a valuable member of the NJCPA and was a scholarship recipient in 2015. At Sax, she is a resource and mentor for accounting and auditing associates and oversees the new hire training every November.

Sviatlana’s clients turn to her for services that will define their future, especially in cases involving IPOs, mergers, private placement offerings, business acquisitions and other equity or capital raises. She serves a number of clients in New Jersey’s thriving life sciences industry.

In 2019, Sviatlana was named to NJBIZ’s list of “Forty Under 40.”

She serves on the NJCPA Content Advisory Board.

SENIOR ASSOCIATE AT SAX LLP

Jessica has a personal commitment to excellent client service and delivery. As one of the coordinators of WilkinGuttenplan’s internship program, she schedues and provides internal assignments to eight to 12 interns each internship session. She also mentors and guides several staff members each year on career development, goal setting and progression. She is a 2019 recipient of the Community Association Institute Award.

UNLOCKYOUR GROW TH POTENTI AL

PARTNER AT FRIEDMAN LLP

MEGAN SARTOR, CPA, ABV, CFF

KATHERINE ZECH, CPA

As a dedicated member of the NJCPA Board of Trustees and a leader at Sax, Megan is highly deserving of the Woman to Watch award. She is the partner-in-charge of her firm’s Valuation, Forensic and Litigation Practice and one of the founders of its Professional Organization of Women for Empowerment & Results (POWER) program, which contributes to the OASIS Breast Cancer Walk, Dress for Success and Partners for Women and Justice.

Kait has shown true leadership in all of her activities at the NJCPA. She is the outgoing chair of the Emerging Leaders Council and is immediate past president of the Union County Chapter.

Kait received the Commerce and Industry Association of New Jersey’s (CIANJ) Generation Now Game Changer Award in 2019 and co-founded the Early-Career Accounting Professionals Group at her firm.

PARTNER AT SAX LLP

SENIOR MANAGER AT PKF O’CONNOR DAVIES LLP

NJCPA NEWS

Lotteries Reduce the Cost of Becoming a CPA To offset the rising cost of becoming a CPA, the NJCPA is offering members two lotteries — the CPA Exam Fee Lottery, which was launched last year, and a new Student Loan Debt Lottery.

NJCPA Student and CPA Candidate members can enter the CPA Exam Fee Lottery from Oct. 1 through Oct. 31 at njcpa.org/cpaexamfeelottery. Ten winners will be selected at random to receive $750 each to cover the fees associated with taking the CPA Exam, which can amount to thousands of dollars when factoring in Exam fees plus a possible review course. Winners will be announced Nov. 15.

In the new Student Loan Debt Lottery, 10 licensed CPA members will be randomly selected to receive $1,200 toward their student loan debt. Entries will be accepted at njcpa.org from Nov. 1 through Nov. 30, and winners will be announced the week of Dec. 14. The NJCPA Student Loan Debt Task Force created the lottery

to assist professionals who are carrying debt incurred on their way to becoming CPAs. The NJCPA Scholarship Fund will be funding the lottery distributions.

“Our members who have earned their CPA designation had to pursue an additional 30 credits in order to meet the requirements for New Jersey CPA licensure. Many did so by taking extra classes or attaining a graduate degree and incurring even more debt,” said Melissa Dardani, CPA, manager of global forensic, compliance and integrity services at Baker Tilly, and a member of the NJCPA Student Loan Task Force.

An NJCPA member survey in 2018 showed that almost 70 percent of the 109 respondents said they held student loan debt related to their education. Of those who provided data, close to 75 percent cited more than $20,000 in debt.

“We are committed to assisting the next generation of CPAs,” said Ralph

Albert Thomas, CPA (DC), CGMA, CEO and executive director of the NJCPA. “Whether it’s mentoring or providing financial assistance, it’s important to encourage young professionals to enter the accounting profession and break down barriers along the way.”

The NJCPA is currently advocating for pending federal legislation that would allow student loan repayments made by an employer to be tax free. It has drafted legislation at the state level to make student loan debt interest tax deductible.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act enabled employers to contribute up to $5,250 toward an employee’s student loan balance, with the payment free from payroll and income tax under a provision until the end of 2020. A separate provision in the CARES Act also temporarily pauses the monthly payments due on federally held student loans through Sept. 30, with 0-percent interest.

Emerging Technologies Conference to Focus on New Data Efficiencies The Emerging Technologies Interest Group (ETIG), comprised of NJCPA members who have an interest in new technologies impacting the accounting profession, will host its first conference via webinar on Tuesday, Oct 27. Discussions will center on using data analytics, robotic process automation and artificial intelligence to enhance accounting functions; how to take a deeper dive into data; and new trends in blockchain and cryptocurrencies.

The conference will bring issues to the forefront that CPAs need to be aware of, such as the continuing shift from permissionless to permissioned blockchains, the best ways to safeguard integrity, how to leverage technology to produce more accurate forecasts and what new technology-related insights are available in accounting, software programming and

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tax work. Practitioners will also learn about the rise of stablecoins and other stabilized cryptoassets and the potential rise of central bank digital currencies.

“Especially now, with trends toward remote work and increased technological integration having been massively accelerated, it is critically important for all CPAs to be well informed and proactive about emerging technology topics,” said Dr. Sean D. Stein Smith, CPA, CFE, CGMA, CMA, assistant professor at City University of New York - Lehman College, leader of the ETIG and a speaker at the conference. “The discussions will focus not only on the tools themselves but will also examine how these tools can be used by attendees in a practical and commonsense manner.”

Other speakers include Mark Eckerle, CPA, an audit manager at Withum

SEPTEMBER/OCTOBER 2020 | NEW JERSEY CPA

and vice leader of the ETIG; Karolis Matulis, CPA, CVA, a supervisor at WilkinGuttenplan; Gregory Fritsky, national director of robotics, AI and data analytics at EisnerAmper LLP; and Jesse M. Herschbein, CPA, CGMA, managerassurance at Prager Metis CPAs LLC. The half-day conference takes place from 8 a.m. to 12 p.m. and provides 4 CPE credits. Register at njcpa.org/conferences.

The ETIG was created for NJCPA members to discuss the relevance of new and emerging technologies in their profession, share findings and develop best practices. Members frequently write articles and blogs for the NJCPA and participate in webinars, conferences and panel discussions to share ideas with their colleagues. To join the ETIG, visit njcpa.org/groups.

CLASSIFIEDS

MERGERS/ACQUISITIONS

Seize a merger/acquisition opportunity with benefits for you. We are looking for firms ranging from $300,000 to $5,000,000 eager to combine forces as we continue to grow across northern NJ, Westchester and the Hudson Valley region.

Goldstein Lieberman & Company is ideally situated to service all types of industries. Visit www.glcpas.com; email me, Phillip Goldstein, CPA, Managing Partner, philg@glcpas.com; or call me at 800-839-5767 to have a confidential conversation.

Matthews, Panariello P.C., a well-established Bergen County firm located in Paramus, is looking to acquire small firms and sole practitioners ranging in size from $100,000 to $550,000. We are a full service, peer reviewed firm with a strong track record of client satisfaction and retention. We have been successful in prior acquisitions; let’s talk. Please visit our website at www.mpcpas.com. To confidentially discuss this opportunity email us at pmanetta@mpcpas.com.

Monmouth County tax and wealth advisory firm seeking partnership with CPA practice(s): looking for an additional source of recurring revenue to complement your tax practice? Looking to enter the wealth advisory business without the costs and complexities? Do you have a succession plan for incapacity or retirement? Contact Gregg at gshaw@ hstaxwealth.com,732-268-8813; www. hstaxwealth.com

Traphagen CPAs & Wealth Advisors, a well-established firm in Bergen County with diverse client base and credentialed support staff is seeking small firms and sole practitioners for acquisition or merger. We are looking for firms ranging in size from $300K to $700K. This is an opportunity to align with a quality peer- reviewed firm, while continuing to provide your clients with exceptional service. To confidentially discuss this opportunity, please email us at carolynn@tfgllc.com.

Accounting Practice Exchange, the online marketplace dedicated exclusively to the purchase, sale and merger of CPA and accounting practices across the USA. View opportunities here: www.accountingpracticeexchange.com.

Central NJ CPA looking for association with young CPA or firm looking to expand. High quality tax and consulting.

Grossing $450,000+, turning away work.

Will help transition. Reply in confidence at njcpa.org/classifieds.

Well established Union County CPA firm offering merger opportunities for sole practitioners looking to move to the next level.

Current Thomson Reuters product users are a plus. Please contact Elsa at 848-2355405 or email info@koenigcpa.net for an appointment.

Central Jersey growth-oriented CPA firm seeks CPA with accounts to join expanding practice for equity interest. Position would also include potentially assuming existing accounts and responsibilities within the practice for additional equity interest. Reply in confidence at njcpa.org/classifieds.

New Jersey practices for sale: gross revenues shown: Springfield tax practice, $260K; Roxbury Township EA tax practice, $230K. For more information, call 800-3970249 or visit www.aps.net.

To see additional classified listings or to place an ad, visit njcpa.org/classifieds.

PROFESSIONAL SERVICES

Quality Review for CPA firms — over 30 years of experience in risk-based audit planning. Contact James M. Sausmer, CPA at james.sausmer@gmail.com, 732-261-7710, www.jimsausmercpa.com.

Experience counts. We have buyers right now looking for businesses. For 27 years First Choice Business Brokers have transitioned $8 billion in business sales of all sizes. Principal broker, Gregory J. Carafello, has owned and operated businesses for 39 years in NY/NJ region. Call Greg to assist your clients transition business ownership at 973-632-2192 or gcarafello@fcbb.com.

ADVERTISERS INDEX C4 CAMICO camico.com 30 DELOITTE deloitte.com 28 FRIEDMAN LLP friedman.com 36 MAZARS mazars.com 37 MSPC CERTIFIED PUBLIC

ACCOUNTANTS AND ADVISORS mspc-cpa.com 17 PAYCHEX payx.me/njcpa-accounting-professionals 27 PRAGER METIS pragermetis.com 33 SOBELCO sobelcollc.com 6 SPENCER SAVINGS BANK spencersavings.com 13 UNTRACHT EARLY untracht.com 3 USI AFFINITY njcpainsurance.com/hardearned 34 WILKINGUTTENPLAN wgcpas.com 35 WITHUM withum.com

NEW JERSEY CPA | SEPTEMBER/OCTOBER 2020

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MEMBER STORY

a lot of really exciting things going on with development, such as affordable housing, open space park solutions, etc. The next 20 years of development in New Jersey is going to be fascinating,” says Matthew, who is also a part-time CFO for the Jersey City Redevelopment Agency.

(left), Steven D. Wielkotz, CPA ,

Matthew B. Wielkotz, CPA

, (center) and Daniel Wielkot

z, CPA (right)

Not Your Traditional Father-Son Accountants

BY KATHLEEN HOFFELDER, NJCPA SENIOR CONTENT EDITOR

When Matthew B. Wielkotz, a CPA and a licensed public school accountant, first joined his father’s accounting and auditing firm in Pompton Lakes and Newton in 2012, he saw a few things he wanted to change. That’s only natural given that Matthew is part of the new breed of CPAs entering the workforce today.

Fast forward a few years later, Wielkotz & Company did undergo some changes, but it also stayed the same in areas too — for good reason.

Matthew had planned to revise and revamp the “old way of doing things,” when he came to the registered municipal accounting (RMA) firm from PwC. But not everything needed to be modernized. Both Matthew and his father, Steven D. Wielkotz, CPA, a registered municipal accountant and licensed public school accountant, knew the value of keeping good client relationships intact — the kind that have been fostered since his father joined the firm from KPMG in

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1995. Despite a few name changes, the firm has maintained its focus on governmental accounting and auditing — something both Matthew and his dad are proud of. “The client-relations side of governmental accounting is very exciting. It’s a very rewarding industry. It’s tough to find an industry that is more openly relatable to people than paying taxes,” he explains.

Matthew did leverage technology and bring more efficiency to operations and client organization. Having acquired accounting experience in real estate at PwC, Matthew also added redevelopment services to the slate of offerings the firm now provides along with its traditional specialty of serving municipalities and schools. His experience helps in providing New Jersey’s Payment in Lieu of Taxes Program (PILOT) agreements, which incentivize developers to build in underdeveloped areas and not have to pay traditional real estate taxes. “There’s

SEPTEMBER/OCTOBER 2020 | NEW JERSEY CPA

OLD AND NEW After they bought out some partners on the verge of retirement, which paved the way for a corporate restructuring, the firm rebranded as Wielkotz & Company, LLC. To this day, Wielkotz is a perfect mix of old and new, which provides the best of both worlds to its clients. To Matthew, leveraging technology is key to running a successful accounting and auditing practice. But as Steven reminds, though modernizing has its advantages, it’s equally important to maintain the level of hands-on auditing service that clients, such as Bergen County, Passaic County and almost one hundred other local governments, municipalities and school districts have come to expect from them.

This kind of accounting and auditing leads both father and son — and now another son, Daniel, has entered the family business — to meet a variety of people from the polished politician to the exterminator or contractor who may not be an expert in municipal finance but has a legislative position in town government. “We help local politicians. They run on certain specific goals and we help them figure out the financial ways to achieve them,” explains Matthew. Assisting with getting a local government’s bond rating up and helping them communicate with the ratings agencies has a direct correlation to what they pay to borrow money and saves taxpayers money on an overall basis, adds Steven. “The ability to stabilize taxes and their budget and help them stay structurally balanced provides personal satisfaction to us since you are helping them accomplish their goals.”

This kind of niche accounting is indeed a two-way street. “They really lean on us a lot more than what I saw at the larger accounting firms,” explains Matthew. But that’s not a complaint. As Steven notes, some of his clients of more than 20 years are some of his closest friends. And sons Matthew and Daniel have grown up calling at least one mentor, a former county auditor himself, “uncle.”

SEPTEMBER 2020 — JUNE 2021

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Ralph Albert Thomas, CPA (DC), CGMA NJCPA CEO & Executive Director

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These are just some of the reasons why the NJCPA selected CAMICO as a preferred provider of Professional Liability Insurance.

CAMICO Representative Irene M. Walton Area VP, Affinity Manager T: 215.351.4765 E: irene_walton@ajg.com

Accountants Professional Liability Insurance may be underwritten by CAMICO Mutual Insurance Company or through CAMICO Insurance Services by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. © CAMICO Services, Inc., dba CAMICO Insurance Services. All Rights Reserved.