Disclosures Sept/Oct 2011

BROUGHT TO YOU BY THE VIRGINIA SOCIETY OF CPAs

SEPTEMBER/OCTOBER 2011 I VOL. 24 NO. 5 I WWW.VSCPA.COM

STUDENT SECTION INSIDE! Killer Value Propositions

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ENGINEER THE ACCOUNTING FIRM OF

THE FUTURE

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The Ph.D. Reality

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Service Learning for Accounting Students

Cloud-based client accounting solutions won’t merely enhance your practice.

They’ll literally reinvent it.

The more you know about your clients’ daily financial picture, the better position you’re in to work collaboratively and provide long-term strategic advice.

Cloud-based accounting solutions from CPA2Biz help you manage your clients’ financial data in real-time, provide higher margin advisory services, build long-term

Simple, efficient online bill management Powered by Bill.com Bill.com streamlines and automates your clients’ accounts payable and receivable processes with complete security and control. By having greater visibility into your clients’ day-to-day finances, you are better able to manage their cash flow and provide strategic guidance.

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loyalty, and differentiate your firm from others.

American Institute of CPAs

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For more information, visit cpa2biz.com/Intacct

INSIDE this issue

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COVER STORY >>

To effectively address the evolving needs of clients, accounting firms must make tough, honest choices in marketing, staffing and technology. If firms hang on to the possibly outdated business model that made them successful in the past, they risk losing market share.

FEATURES

ARTICLES

ENGINEERING THE ACCOUNTING FIRM OF THE FUTURE

KILLER VALUE PROPOSITIONS 12

Three simple beliefs make up the foundation of a future-forward accounting firm.

THE PH.D. REALITY

SECTIONS

10

Your value proposition consists of those things about your firm that clients value.

ADVERTISERS INDEX 18

Three accounting doctoral students provide inspiration for CPAs to head back to school to become professors and teach the next CPA generation.

SERVICE LEARNING FOR ACCOUNTING STUDENTS 24 The Volunteer Income Tax Assistance (VITA) Program allows students to gain real-world tax experience and help their communities.

Accounting Practice Sales inside back cover • AON Insurance p. 21 • Audimation Services Inc. p. 17 • Beth A. Berk, CPA p. 33 • CAMICO back cover • Carlow University p. 31 • CPA2Biz, Inc. inside front cover • GEICO p. 42 • PNC Bank p. 43 • SunTrust Bank p. 3 • Tax Solutions Alliance p. 15 • Virginia Community Finance, Inc. p. 9 • VSCPA Insurance Service Center p. 23

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LINE ITEMS

4

DATA DRAFT

6

ADVOCACY

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TAXATION 8 STUDENT SECTION

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SELF-ASSESSMENT 32 VSCPA FINANCIALS

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VSCPA NEWS

36

MEMBER NEWS

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VSCPA EDUCATIONAL FOUNDATION 40

disclosures Our mission is to enhance the success of CPAs.

BACKTALK

CLASSIFIEDS 42

is published bimonthly for members of the Virginia Society of CPAs.

I AM

DISCLOSURES

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SEPTEMBER/OCTOBER 2011

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VIRGINIA SOCIETY OF CPAs

4309 Cox Road Glen Allen, VA 23060 Ph. (800) 733-8272 Fx. (804) 273-1741 www.vscpa.com

disclosures EDITORIAL STAFF Jill Edmonds Managing Editor disclosures@vscpa.com Jenny Hansen Communications Director jhansen@vscpa.com Tina Lambert, CAE Vice President, Member & Public Relations tlambert@vscpa.com EDITORIAL TASK FORCE Joan D. Aaron, CPA William C. Barrett III, CPA/ABV Beth A. Berk, CPA James D. Cole, CPA Cheri G. David, CPA, CVA James P. Davis Jr., CPA William C. Foote, CPA/ABV, CVA Elizabeth M. Helle, CPA Heather L. Judson, CPA Clare K. Levison, CPA Gabriele Lingenfelter, CPA Haven S. Pope, CPA, MBA, CFE George D. Strudgeon, CPA Philip H. Umansky, CPA, Ph.D. Thomas L. Visotsky, CPA

BACKTALK you said it VIA FACEBOOK >>

Straight From the Students It is a little late coming, but I had an amazing time at the Leaders’ Institute this past weekend! It is an amazing opportunity, one that I will never forget! Thank you for everything! JESSICA MURNIN I was fortunate to attend the Leaders’ Institute of this year. I had a great time.

The speakers were really great. They shared their experiences and gave us some real world strategies on how to advance our studies and careers. Thank you VSCPA!! FATIMA SBAI VIA EMAIL >> I just read the July/August issue of Disclosures and have to tell you that it’s a really impressive issue. There’s a wide range of content — the elusive “something for everyone” — and it deals with PRACTICAL issues facing CPAs. Congratulations to everyone who had a hand in this issue.

Articles and advertising for future issues are due by 5 p.m. on the following dates: Jan./Feb. 2012 Mar./Apr. 2012 May/June 2012 July/Aug. 2012 Sept./Oct. 2012 Nov./Dec. 2012

Oct. 15 Dec. 15 Feb. 15, 2012 Apr. 15, 2012 June 15, 2012 Aug. 15, 2012

Statements of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers, members or editorial staff.

The Warren Group Design / Production / Advertising www.thewarrengroup.com custompubs@thewarrengroup.com

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TWITTERSPHERE >> Thanks @VSCPANews for publishing my article — You’re Always Selling — @LISABENSONTGP

J. CLARKE PRICE, CAE

President & CEO of the Ohio Society of CPAs

VIA EMAIL >> I just finished reading your article [“Don’t Be an E-mail Dud”] in the May/June Disclosures. Everything you said was spot on and I agree with it 100%!

RICK BYNAKER, CPA

sole proprietor, McLean

DEADLINES

From the

VIA EMAIL >> [The Personal Finance Institute, a teacher training program with the Virginia Council on Economic Education,] went really well and I had a great time presenting income taxes. Thanks again for thinking of me and providing me the opportunity to be a presenter. It was a wonderful experience.

HOLLY RUTHERFORD, CPA

Brown, Edwards & Company, LLP, Bristol

Get in touch

Really enjoyed speaking to #vcuiylep @VCUSocial this morning, looking forward to speaking to the Richmond Chapter of the VSCPA on the 26th — @BUSSE

RT @financialfit: Go #Nutzy for Financial Fiteracy! Local #CPAs will promote money management next week! @ gosquirrels — @360CPAVOLUNTEER

Starting the day w/ a breakfast for Sen Stosch — the only CPA in Virginia’s legislature.

— @MAUREENDINGUS BLOG: www.cpacafe.com TWITTER: @VSCPANews, @FinancialFit LINKEDIN: http://tinyurl.com/VSCPALinkedInGroup FACEBOOK: www.facebook.com/VSCPA

At the Virginia Society of CPAs, we love to hear from you.

Whether it’s a quick e-mail to a staff member, chat on the phone, Disclosures letter to the editor, tweet, blog comment or something different altogether, let us know what you’re talking about, how you feel about different issues affecting CPAs and how we can help.

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LINE items NEW DESIGNATION OPPORTUNITY >>

Management accountants can show their smarts CPAs working in management accounting can no longer feel left out of the designation game; in May, the American Institute of CPAs (AICPA) Council approved a new credential called Chartered Global Management Accountant (CGMA). The CGMA credential is a joint venture between the AICPA and the Chartered Institute of Management Accountants (CIMA).

The organizations created the CGMA credential to advance the science of management accounting while recognizing the unique competences and expertise of management accountants.

Attaining the CGMA credential may be attractive to CPAs working in business, industry or government, or to those who are involved in management accounting roles on behalf of clients.

Beginning in the first quarter of 2012, AICPA voting members will be automatically eligible for the credential upon verifying three years of qualifying experience. CPAs who are members of both the AICPA and the VSCPA will receive a special discounted annual fee.

CGMAs will have many resources and professional development tools at their fingertips. Stay tuned for more information as it becomes available on how to achieve the designation. n

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GREAT CHOICE, ACCOUNTING STUDENTS >>

Job prospects increase in 2011 Accounting students can rest easy knowing that nearly 90 percent of accounting firms will hire the same or more accounting graduates in 2011 compared to 2010. The American Institute of CPAs’ “2011 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits” report reveals 71 percent of the largest firms anticipate hiring more grads than last year.

Recession, begone. Hiring demand has nearly returned to its all-time high in 2006–2007, the report notes.

That’s good news, because the pipeline is strong: A record 68,639 students graduated with accounting degrees in 2010. And for the first time ever, nationwide enrollment in bachelor’s and master’s degree accounting programs hit the 225,000 mark. See page 6 for info on enrollments by gender.

Hires of grads with master’s degrees are also on the rise: Masters of Accountancy graduates made up 30 percent of new hires, compared to 26 percent in 2009.

And finally, responsibilities for new hires are becoming more varied. Firms indicate a full 16 percent of hires will be for “other” roles outside taxation, accounting/ auditing and management information systems — a huge 13 percent increase from 2009. Consulting services is a main focus area for “other” hires. n

SEPTEMBER/OCTOBER 2011

LINE items

ART VIRGINIA CPA WEEK >>

CPAs … celebrate!

CLICK & LEARN ABOUT FISCAL RESPONSIBILITY >>

The great contributions that Virginia’s CPAs give to Virginia citizens and communities should be recognized! This year’s “Virginia Certified Public Accountants Week” is Sept. 18–24, 2011.

This is your week to shine, so join in by doing one or more of the following!

VOLUNTEER: CPA Day of Service is Sept. 23, and it’s not too late to participate!

Organize your firm or office, or take time out of your day to volunteer for your favorite organization alone. Be sure to let us know what you did so we can include your activity in statewide communications. Visit www.vscpa.com/DayofService for details.

EDUCATE: Do you serve on nonprofit boards with colleagues who could use a tutorial in nonprofit finances? Do you have clients who could benefit from receiving money management tips? Let them know about the VSCPA’s Nonprofit Finance Seminar or Financial Fitness Workshop during CPA Week; just send them to www.vscpa.com/CPAWeek for more info.

SPREAD THE WORD: Download a special CPA Week graphic to add to your website, Facebook page, email signature or elsewhere! Your colleagues and clients will see your support for your profession.

ALERT THE PRESS: Download a press release template and send to local media to generate buzz for CPA Week.

RECOGNIZE YOUR CPAs: Hold special events at your firm or company to recognize the CPAs on staff and thank them for their work. Ice cream social, anyone?

WEAR YOUR PRIDE: Check out CPA-themed goodies you can sport all week long at www.cafepress.com/vscpa.

GIVE BACK: Make a financial contribution to the VSCPA Educational Foundation or CPA Political Action Committee (PAC) of Virginia in honor of CPA Week.

Check out www.vscpa.com/CPAWeek for more information and ways you can celebrate, or scan the QR code with your smartphone for instant access. What’s a QR code?

See www.vscpa.com/QR. n

DISCLOSURES

America’s credit crisis, the financial sustainability of the federal government, challenges to economic growth … If these topics aren’t scary enough and you want to learn more, check out the VSCPA’s Fiscal Responsibility Resource Center for articles, links to organizations involved and much more. There’s even a video from former U.S. Comptroller General David M. Walker discussing America’s financial crisis. Find it under “Resources” at www.FinancialFitness.org.

THE IFRS HEAT IS ON >>

The U.S. Securities and Exchange Commission (SEC) “can no longer kick that can down the road,” said SEC Commissioner Kathleen Casey when addressing the adoption of International Financial Reporting Standards (IFRS) at the Society of Corporate Secretaries and Governance Professionals’ 65th Annual Conference in July. The risks of not moving forward with IFRS in the U.S. are “simply too great,” and the SEC “must decide to incorporate IFRS for U.S. issuers.”

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SEPTEMBER/OCTOBER 2011

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DATA draft SHOW VIRGINIA THE MONEY >>

CPA Exam goes global

Old Dominion is No. 1 on America’s richest counties list

Beginning in August 2011, the CPA Exam began testing at international locations.

Aspiring CPAs sat at Prometric testing centers in the following countries:

Eight localities (five counties and three cities) in Virginia, more than any other state, are among the top 25 richest counties in America, according to the 2011 American Community Survey from the U.S. Census Bureau. Based on median household income data between 2005 and 2009, 10 of the richest counties — including all but one of Virginia’s representatives — are in the metropolitan areas of Washington, D.C., and Baltimore.

BAHRAIN JAPAN KUWAIT LEBANON UNITED ARAB EMIRATES

RANK

COUNTY

MEDIAN HOUSEHOLD INCOME

1

City of Falls Church

$113,313

2

Loudoun County

$112,021

3

Fairfax County

$104,259

10

City of Fairfax.

$96,233

11

Arlington County

$93,806

15

Stafford County

$90,586

16

Prince William County

$88,850

24

City of Poquoson

$84,688

BOYS RULE >>

Gender stats in accounting program enrollment For the first time in 10 years, more men than women enrolled in undergraduate ENROLLMENT BY GENDER accounting programs at the100 nation’s colleges and universities in 2009–2010, the most 90 are recent year for which statistics available. Enrollment in Ph.D. programs remains ENROLLMENT BY GENDER 100 male-dominated.

80

90

BY THE NUMBERS >>

100 100 9090 8080

1

Virginia’s rank on CNBC’s 2011 “Top States for Business” list. In the five years since CNBC has ranked the states, the Commonwealth has clinched No. 1 three times and finished second the other two.

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7070 6060 5050 4040

80

70 ENROLLMENT ENROLLMENT BYBY GENDER GENDER

60

70 60 50

50.7 %

30 20

49.3 % 61.7 %

50.7 % 38.3 %

61.7 61.7 % %

10

38.3 38.3 % % Bachelor’s

Bachelor’s

Master’s

Master’s

SEPTEMBER/OCTOBER 2011

Ph.D. FEMALE

Ph.D.

MALE MALE

1010 00

50.7 %

50.7 % % 49.3 49.3 % % 50.7

0

10

2020

49.3 %

20

50.7 50.7 % % 49.3 49.3 % %

0

40 49.3 %

49.3 %

30

40

3030

50.7 %

50

Source: 61.7 % American Institute of CPAs’ “2011 Trends 38.3 % in the Supply of Accounting Graduates and the Demand for Public Accounting MALE Recruits” report

FEMALE FEMALE Bachelor’s Bachelor’s

Master’s Master’s

Ph.D. Ph.D.

MA

FEM

ADVOCACY

VSCPA members Broome, Holton wrap up successful VBOA terms The June 29 meeting of the Virginia Board of Accountancy (VBOA) marked the end of an era as O. Whitfield “Whit” Broome, CPA, Ph.D., and Steve Holton, CPA, finished their second terms on the Board. The two VSCPA members sat on the Board during a time of significant change to the CPA profession and served CPAs and the Commonwealth with a steady hand.

Broome and Holton joined the VBOA during a turbulent time, and the pair and their fellow Board members decided upon a series of measured regulatory changes.

The VBOA and the VSCPA honored Broome and Holton, both former Board chairs, at their final meeting. Virginia Deputy Secretary of Commerce & Trade Carrie Cantrell recognized the pair for their years of service on behalf of Gov. Bob McDonnell’s administration.

The duo came to the VBOA from very different backgrounds. Broome has spent the majority of his career in academia, while Holton has spent his career in the field, currently a partner at Martin, Dolan & Holton in Richmond.

Broome and Holton served the VBOA with the best interests of Virginia CPAs in mind. The VBOA and the VSCPA, and the relationship between the two, are stronger for their involvement. The VSCPA joins the VBOA and the McDonnell administration in saluting Whit Broome and Steve Holton for their dedicated service to the Board and the profession. n

HAPPY ANNIVERSARY, VBOA! >>

Ode to independence One decade ago, legislation passed during the 2001 General Assembly moved the Virginia Board of Accountancy (VBOA) out of its umbrella regulatory agency, the Department of Professional & Occupational Regulation, creating an independent agency.

Why is independence important? “Accountancy Boards have distinct differences in regulatory complexity, goals, licensee services, and in qualification and competency requirements than other boards that are generally grouped under an Umbrella Agency,” according to a 2010 white paper from the National Association of State Boards of Accountancy, cowritten by VSCPA member and former VBOA chair Ellis Dunkum, CPA. The VSCPA was very involved in promoting the VBOA’s independence 10 years ago and promotes its continued importance today. n

FROM LEFT TO RIGHT, VSCPA Executive Vice President

Maureen Dingus, VSCPA 2010–2011 Chair Brad Jones, CPA, Virginia Rep. Rob Wittman, and VSCPA President & CEO Stephanie Peters, CAE, met in May to discuss issues important to CPAs.

Hitting the Hill During the American Institute of CPAs (AICPA) Governing Council meeting in May, eight VSCPA members joined nearly 500 CPAs nationwide on Capitol Hill to discuss top issues of importance to CPAs with elected officials.

CPAs met with more than 200 lawmakers in the U.S. House and Senate to talk tax. Top agenda items included: TAX SIMPLIFICATION: Tax laws need to be simple and sound so that taxpayers can understand them and comply.

TAX RETURN DUE DATES: Due dates for filing returns for partnership, S corporation and other passthrough entities must be set so that taxpayers don’t face problems when they receive IRS K-1 Schedules late.

MOBILE WORK FORCE: A national standard for withholding state income taxes for nonresident workers would reduce compliance burdens on businesses and simplify enforcement activities in state tax departments. n >>

SPEAK UP!

OPINIONS NEEDED ON PRIVATE COMPANY FINANCIAL REPORTING The future of standard setting for private companies is being debated, and it’s not too late to join the conversation. Visit www.vscpa.com/PCFR for details.

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TAXATION THEY WEREN’T KIDDING! >>

IRS yanks tax-exempt status from non-filing nonprofits When the Internal Revenue Service (IRS) said that nonprofits with outstanding reports due to the IRS needed to get on the ball, it meant it. In June, it revoked the tax-exempt status of approximately 275,000 nonprofits that had not filed returns or reports for three consecutive years.

While most of those nonprofits are believed to be defunct, the IRS has information available to help those organizations reinstate their tax-exempt status. At www.irs.gov, details of the revocations and the reinstatement process can be found in Notice 201143, Notice 2011-44 and Revenue Procedure 2011-36. A list of organizations whose tax-exempt status was revoked is also available on the IRS website.

Tax patent reform this year?

In June, the U.S. House of Representatives voted 304–117 to pass the “America Invents Act,” which includes a provision that would ban patents on tax strategies.

The bill had bipartisan support and the “nay” votes were comprised of 67 Republicans and 50 Democrats.

The House bill differs from the Senate version of the bill that passed in March, so it will go through conference for reconciliation before heading to President Obama, who has indicated his support.

The finish line may be in sight to a multiyear fight by the accounting profession to ban tax patent strategies. The VSCPA has been active in its opposition to tax patents and sent a letter to all Virginia representatives urging them to support the “America Invents Act.” A wealth of information on the issue is available under “VSCPA Positions” in the “Advocacy” section of www.vscpa.com. n

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More than 1 million notices were sent to at-risk nonprofits warning them of the revocation possibility, and the IRS also gave organizations an extra five months to come into compliance. During that time, approximately 50,000 nonprofits filed required forms. The IRS believes the vast majority of small tax-exempt organizations are in compliance with the law.

Scan this QR code with your smartphone and watch an IRS video on how nonprofits can get their tax-exempt statuses back. What’s a QR code? See www.vscpa.com/QR. n

ON THE HORIZON >>

Government to withhold 3 percent of contractor payments After Dec. 31, 2012, payments made by state, local and national governments to contractors for goods and services will be withheld by 3 percent.

Originally included in the Tax Increase Prevention and Reconciliation Act of 2005, the requirement was delayed until 2013 and affects payments higher than $10,000 on contracts that are binding after Dec. 31, 2012, or on contracts that are materially modified after that date.

The goal of the withholding requirement is to increase tax compliance, but some critics believe its negative effects outweigh benefits. Governments will have significant upfront costs to implement systems and processes to complete the withholdings, and contractors must develop systems to track and reconcile withholdings.

The American Institute of CPAs (AICPA) and other professional organizations are actively lobbying for repeal. n

SEPTEMBER/OCTOBER 2011

TAXATION www.VCFNOW.com/CPAs

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When banks can’t help your clients . . .

Tax code confusion = Greater tax gap

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Maligning the U.S. Tax Code for its confusion and complexity is nothing new. But now there’s definitive proof that the code itself contributes to the tax gap — the difference between taxes owed and taxes paid.

Cash flow blues?

A study released this year from the U.S. Government Accountability Office (GAO) documents millions of errors by taxpayers confused by complex rules for determining their “basis” (such as the taxpayer’s investment in a property, in securities sold or corporations owned).

While complex rules are there for a reason, such as ensuring income is properly measured, taxpayers are confused by recordkeeping, planning and filing requirements.

“Although many taxpayers have simple forms of income, others do not,” the GAO report says. “They may be required to do complicated calculations and keep detailed records. This complexity can engender errors and underpaid taxes.”

All of that leads to complicated tax planning, problems choosing tax expenditures for similar purposes and, ultimately, discrepancies between what taxpayers owe the government and what they pay. They simply don’t know how to untangle the web of regulations.

The issue is not lost on lawmakers. Senate Finance Committee Chairman Max Baucus (D-Mont.) recognizes the consequences: “We should make determining a taxpayer’s responsibility as easy as possible so we are able to collect more of the $345 billion in taxes that are owed but unpaid each year.”

Over 18 years,

VCF has provided

Working Capital Funding

There is no magic bullet to closing the tax gap, but there are strategies that could improve taxpayer compliance. Check out the full report at www.gao.gov to read the GAO’s suggested approaches. n

DISCLOSURES

to over 500 companies.

Toll Free: 855-897-1200 Local: 804-897-1200

www.VCFNOW.com/CPAs

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MARKET knowledge

How to Create a Killer Value Proposition for Your Accounting Firm

BY AARON TAYLOR

value proposition is a critical factor in the business development equation; in fact, nothing is a more potent driver of referrals.

VALUE PROPOSITIONS IN THE WILD

If you’ve been in business for any amount of time, chances are you have at least heard of the term “value proposition.”

But most CPAs have only a vague idea what it means or how it’s relevant to their practice.

It’s an important concept, and one that can have significant implications on your firm’s ability to attract and keep clients. So let’s crack open the value proposition nut and see what’s inside.

We’ll begin with a definition. Michael Lanning, who coined the term in 1984, defines “value proposition” this way: “The combination of resulting experiences, including price, which an organization delivers to a group of intended customers in some time frame, in return for those customers buying/using and otherwise doing what the organization wants rather than taking some competing alternative.”

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In other words, your value proposition consists of those things about your firm that clients value and which compel them to choose you over a competitor.

It’s the reason your clients keep coming back.

Your value proposition is less about what you promise than the experience you actually deliver. While it is related to your unique sales proposition — used in the marketing and sales process to differentiate and position your firm — it makes its appearance after a new business relationship has been established. Your

SEPTEMBER/OCTOBER 2011

So what does a strong value proposition look like in the real world? One of the best recent examples of a compelling accounting firm value proposition comes to us via the United Kingdom.

A company called Mazuma (the word means “money” in Yiddish) introduced its easy-to-use, low-cost accounting service to U.S. consumers earlier this year.

“It all started with the tax panic we saw all of our friends and family go through,” says Mazuma co-founder Lucy Cohen.

“We looked around and asked ourselves, ‘What is the simplest way to do this from the customer’s perspective?’” That’s when the co-founders came up with the purple envelope system.

“Each month our clients simply pop all of their tax-related information in a big purple envelope and send it in,” Cohen says. “They pay us a low fixed price. It couldn’t be easier.” In fact, it’s a business model with a killer value proposition.

“We are focused on high volume and low margins,” Cohen adds. “We know the average number of bits of paper in each envelope and exactly how long it takes to process them. Each client is

MARKET knowledge

Your value proposition isn’t your elevator speech. It’s the value you create for your clients. assigned a team consisting of one to three accountants and six bookkeepers. This allows for cross-checks and also keeps our response time to inquiries down to less than one business day. We have a 92 percent client renewal rate. In the UK, a 75–85 percent rate is considered very good, so we know the model is sound.”

accounting clients.” Their focus in just two industries gives them natural credibility to their target audience.

Another firm in Northern Virginia has built its reputation around its SarbanesOxley expertise, which resonates with companies struggling to comply with a bevy of regulations.

But what if you don’t have a disruptive new model to uncork in the marketplace?

What if you run a traditional CPA practice serving individuals and smalland mid-size businesses? How do you build a value proposition that matters?

2. UNDERSTAND YOUR CUSTOMERS’ NEEDS

3 WAYS TO BUILD A BETTER VALUE PROPOSITION It doesn’t take a marketing genius to create a firm that people appreciate and recommend to friends and colleagues.

But it does take a little courage to change the way you approach the marketplace.

Here are three great ways you can start building perceived value in your firm:

1. SPECIALIZE When you focus in a specific industry or area of expertise, it’s easier to promote your value proposition — after all, you know the territory better than a nonspecialist. So long as you can keep that implicit promise and demonstrate that you have expertise in your audience’s market niche, you have a tremendous advantage over less-focused firms. One 70-person firm in Pennsylvania, for example, brings “years of experience and expertise to government and nonprofit

Many CPA firms talk about their proactive approach to service, but few live up to the hype. This is a disappointment to many clients. A recent study has shown that professional services firms that frequently research their target audience to understand their evolving needs usually grow faster and are more profitable than firms that do little or no research. This research is most effective when conducted in confidence by a neutral third party, allowing clients and prospects to answer questions honestly.

A little “insider knowledge” gleaned from regular interviews with clients and prospects in your target audience will allow you to be more responsive to their needs. And it could give you a tremendous advantage over the typical transactional accounting firm.

3. FIND NEW WAYS TO HELP YOUR CLIENTS Research shows that most clients aren’t aware of all the services their CPA firm offers. That means that many of your clients may look elsewhere for some of the things you do. You probably list your full range of services on your website and in your firm brochure, but once people hire you, they rarely look again at your business collateral. For better or for worse, many clients will pigeonhole you as a single-service provider (the one they hired you for initially). Fortunately, there is an answer, and a golden opportunity to build a great value proposition. Try to set aside time to sit down with your clients on a regular basis — at least once a year — and talk about their challenges. Then use this opportunity to explain how your firm can address their challenges. You’ll come across as a collaborative problem solver, not a salesman. And by regularly taking the pulse of your marketplace, you’ll be better prepared to respond to your clients’ evolving needs.

Your value proposition isn’t your elevator speech. It’s not your foot in the door.

Rather, it is the value you create for your clients — the experiences and positive outcomes that create repeat clients and fuel word-of-mouth referrals. If you can get your value proposition right, marketing and sales get a whole lot easier. n

AARON TAYLOR is a partner at Hinge, a leading branding and marketing firm for professional services firms. He is co-author of the book, “Spiraling Up: How to Create a High Growth, High Value Professional Services Firm.” Contact him at aaron@hingemarketing.com.

DISCLOSURES

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PRACTICE management

Engineer the Accounting Firm of the Future

BY BRIAN WENDROFF, CPA AND DARREN WENDROFF

reflected on railroad owners’ failure to heed emerging trends in the 1940s and 50s that would eventually topple the once-dominant industry:

As technology shifts, CPA firms can take cues from the demise of the railroad industry and avoid becoming obsolete. By focusing on solving clients’ problems, understanding generational differences and amassing the right staff, firms can remain relevant and set themselves up for future success.

Consider cloud computing, the Millennial Generation workforce, Baby Boomers retiring and the dozen or so other imminent trends affecting the accounting industry, and we seem to be charging toward an uncertain (but

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certainly turbulent) future like a runaway train. And that analogy is more literal than cliché.

In “Marketing Myopia,” an article published in 1960 by the Harvard Business Review, Dr. Theodore Levitt

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“The railroads did not stop growing because the need for passenger and freight transportation declined,” he wrote.

“That grew. The railroads are in trouble today not because the need was filled by others (cars, trucks, airplanes, even telephones) but because it was not filled by the railroads themselves. They let others take customers away from them because they assumed themselves to be in the railroad business rather than the transportation business. The reason they defined their industry incorrectly was that they were railroad oriented instead of transportation oriented; they were product-oriented instead of customeroriented. “ While the issues firms face today are not completely akin to those of the 1950s railroad industry, the similarities are striking. Technology and automated processes made vehicles the more abundant and trusted mode of transportation, just as technology and online information has made do-ityourself tax software a trusted option for a growing number of people.

The Greatest Generation, returning victorious from World War II, set out to

PRACTICE management

redefine America through the automobile and the new highway system, while today the Millennial Generation, though not nearly as accomplished, is just as confidently redefining the market and workplace.

CPATrendlines.com. “Sure they’re using QuickBooks, screwing it up, but they’re bypassing the accounting profession. The problem is that few firms understand what this new generation of clients is looking for.”

And finally, just as the railroad titans misidentified themselves as the narrowly defined “railroad industry” versus the broad “transportation industry,” shutting themselves off from marketing opportunities and client needs, CPAs today risk misidentifying themselves as the narrowly defined accounting industry.

Instead, they should label themselves under a broader classification in which accountants have thrived for decades: The Problem-Solving Business.

That prospect can be scary to any accounting firm. According to the “Intuit 2020 Report — Twenty Trends That Will Shape the Next Decade,” accounting firms will be affected by the influx of Generations Y, Z and Millennial consumers, or the Digital Generation.

The same people who have never spoken with a bank teller will soon be adjusting their withholdings, opening businesses and purchasing homes. In 10 years, the Millennial Generation will be in its 30s and the oldest of Gen Y will be 40 — and they’ll have far different expectations than today.

To effectively address the evolving needs of clients, accounting firms must make tough, honest choices in marketing, staffing and technology. If firms hang on to the possibly outdated business model that made them successful in the past, they risk losing market share.

THE 21ST CENTURY SHINGLE “There’s a whole generation growing up that has never used an accountant,” says Rick Telberg, president of Bay Street Group, LLC, and editor-in-chief of

“The new generation grew up with technology, and their communication choices are very different than those of us who have been practicing for so many years,” says Rich Walker, director of communications for Intuit’s Accounting Professionals Division. “I think clients will expect to have 24/7 access and they will want to communicate through the same mediums they use in their everyday life, like smartphones and mobile technology.”

In the $4 million dollar research project

and subsequent book, “Grown Up Digital,” author Don Tapscott writes that the four P’s of marketing — Product, Place, Price and Promotion — no longer apply to this new generation of consumers. Instead, writes Tapscott, companies should consider the marketing ABC’s: Anyplace, Brand and Communication.

“Anyplace” means the Digital Generation will want to research and purchase services where and when they want, whether it’s using their iPad on the subway to search Yelp for the highest recommended accountant or perusing CPA firm websites on their smartphones while waiting in the grocery checkout line. Apparently, nobody sits in front of a computer anymore.

And when they find you, it’s imperative that your brand (website) communicates the right message. Whether you’re a proactive firm, technologically savvy or even classically old school, your site should convey the right message almost instantly (and God help you if you don’t have a website).

“It’s important to be where the eyeballs are. Facebook, YouTube, Twitter have generally been regarded as purely social, but accountants need to embrace the idea of ‘social,’ as that’s where people are interacting — and accountants need 

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PRACTICE management to be part of that conversation,” says Walker. “The social networks cannot be just about selling. You need to provide meaningful content and connect with users.”

In nine years, 60 million Americans — 1 in 6 — will be over the age of 65, the Intuit 2020 report notes, and Baby Boomers show no signs of slowing down.

Intuit calls this group the “Unretired,” and they present a huge opportunity for accounting firms.

“They’ve created a certain amount of wealth, and I think this will create changes in estate and tax planning for CPA firms,” says Walker. “We’ve already started to see this with elder care, whole new services opening up.”

To neglect the Baby Boomers’ use of social media would be a big mistake. According to a recent Facebook demographic report, the two fastest growing segments of Facebook users are adults ages 55 to 64 and 65-plus. Studies also suggest that while generations are defined by their age demographics, Baby Boomers are increasingly adopting the Digital Generation’s shopping habits.

“The firms that succeed in the future, that get more than [their] share of clients, are the ones that understand process and lead their clients with communication and technology,” Telberg says.

THINKING OUT CLOUD AND OTHER TECHNOLOGY If you’d have asked many accountants about cloud computing five years ago, you may have gotten “Cloud what?”

But if you asked renowned technologist Douglas Parkhill 50 years ago, he’d have

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At 25 years old and with only one year of public accounting experience, Brian Wendroff, CPA, had no business starting his own firm.

But his naiveté allowed him to grow the firm unencumbered by how firms are generally built and approach marketing and technology with a fresh set of eyes. said, “Yes, of course.”

The former Canadian research minister outlined the concept of the cloud in his book “The Challenge of the Computer Utility,” published in 1966. The technology’s evolved considerably since, and today Microsoft, Dell, Google, Apple, Salesforce and more have invested heavily in cloud offerings and the promise of a more connected world.

costs and the ability for firms to scale IT services up or down efficiently since they can purchase software as a service.

Another benefit is being able to access your information, whether at the office, at home or at the airport on your way to Costa Rica and your other “office.”

Collaboration is also a key benefit since teams can work on files simultaneously rather than having to shuffle flash drives or wait for someone to close the file.

Cloud computing works basically like this: You have a server in your office that holds your information and applications.

Staff logs into the server through their local connection to access the information and applications. That’s a local, private cloud. Now multiply that by a million and you have cloud computing, where anyone with the right computer, passwords and settings can access any document.

However, arguments against the cloud are equally impressive. Speed is an issue, though it is similar to desktop speeds now and should only improve as technology advances, and relying on 24/7 Internet (and thus cloud) access is a bit scary, though latency is a desktop issue as well.

The elephants in the room are security and reliability.

“I think we as an industry haven’t done enough to educate accountants about cloud computing, security and its other capabilities,” says Steve Blundell, Intuit vice president of acquisitions and innovation. “The future is going to be the cloud, and we need to be ready to deliver those benefits when our customers are ready to take advantage of them.”

“Data security is the concern we hear from practitioners, but our data centers are world class, with high-end security and encryption, multiple power sources and multiple servers running redundantly to ensure constant connectivity,” says Steve Fleszar, vice president of strategic marketing at Thomson Reuters. “If a nuclear bomb were to go off, the data would still be safe — though, we’d probably have other problems at that point.”

The cloud benefits include reduced

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PRACTICE management Online banking is already cloud computing, and as other large organizations more toward that direction, the real breakthrough will be connecting the tax software to client information seamlessly.

As more companies and data moves toward the cloud, the ability for data to be shared (e.g. pulling client investment information from Fidelity and inputting it into the tax return automatically) should develop. And while the cloud will help facilitate the client’s ability to “communicate” their information to the firm seamlessly, mobile computing will facilitate our ability to communicate to the client more effectively.

“At Intuit, we established the concept of never entering data twice,” says Blundell.

“Now, we have a concept of never enter data.”

In June, Intuit announced Intuit Anywhere, making it much easier for developers to create applications leveraging Intuit products, and they are working on image recognition applications that allow the client to take photos of important documents, using smartphones, which could then appear seamlessly in clients’ tax preparation software. Banks already have this ability with check deposits, and the technology will continue to develop.

Later this year, Thomson Reuters plans to release a mobile application that firms can brand and customize to offer to clients, which could provide updates on tax return status, firm updates and other communications to develop a richer, more proactive relationship with the client. Checkpoint is also now accessible from a smartphone, tablet or desktop connection, and can share search results

across all platforms seamlessly.

“The stereotype is that accountants are not first adopters, but [if] you ask how many firms were paperless 10 years ago, what’s the answer? What’s the answer today?

Literally in 10 years we’ve gone from a paper environment to almost entirely paperless,” says Fleszar. “If the technology works, it will be adopted. Not only are you cutting out steps in the work process, you’re increasing client satisfaction.”

TALENT MANAGEMENT In the past year, our firm has made four hires, and those were the four most difficult decisions we had to make all year. While technology is a valuable

tool, and clients ensure growth, no professional services organization can be successful without the right people.

With the mercurial Millennial Generation entering the workforce and Baby Boomers supposedly preparing to exit en masse, staffing the accounting firm of the future may be the biggest challenge of all.

“There is just a huge increase in demand for workplace flexibility, which we used to call work/life balance. I don’t think it’s about work/life balance anymore; that assumes 50 percent balance, 50 percent work. It’s more work/life integration now,” says Steve Miranda, chief global HR officer for the Society for Human Resource Management.

“Our fathers would come home after 

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PRACTICE management a 40-hour workweek and cut off the business world until the next day, where I might come home, eat dinner with my family and continue the day’s work at 9:30 at night. But if I cut out early on Friday afternoon to watch my daughter play soccer, I don’t feel guilty,” Miranda says.

Workplace flexibility can be seen with the Results Only Work Environment

(ROWE) implemented by Best Buy. In this model, employees have no assigned store hours; instead, they choose the times they want to work and are held accountable for company results rather than hours worked.

Too radical for a CPA firm? Ryan, LLC, an international tax firm, implemented the practice in 2008 in an attempt to

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The future seems … so far away. Check out these five tips for creating the Accounting Firm of the Future today: 1. ESTABLISH A TELEWORK PROGRAM Not only will an established telework program improve staff morale, natural disasters during tax season (i.e. “Snowmageddon”) won’t slow you down.

Telework!VA awards qualified firms up to $50,000 in grants to establish their own programs. Check www.teleworkva.org for more info.

2. BRING IN INTERNS The key to a great internship program is engaging interns with challenging work and creating an organized, directed program with expected results.

“Think of your interns as contractors,” says Steve Miranda, of the Society for Human Resource Management. “There is no better way to have a ‘test drive’ with potential staff.”

3. STAY ABREAST OF EMERGING TRENDS The “Intuit 2020 Report — Twenty Trends That Will Shape the Next Decade” is a great resource to learn what’s coming next. Print it, read it, earmark it and reread it later. If you’re looking to build the firm of the future, this report may be the blueprint. Get it at http://about.intuit.com/ futureofsmallbusiness.

4. ASSIGN A FIRM TECHNOLOGY OFFICER And have that staff member bring you five to 10 new technologies every month or quarter. It’s a great way to develop leadership in entry-level staff and keep you abreast on the latest technology trends.

5. INVEST IN A CRM SYSTEM Customer Relationship Management (CRM) systems range from free to thousands of dollars. Our firm uses HighriseHQ, and we love its simplicity, customization features and price. Find it at www.highrisehq.com.

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SEPTEMBER/OCTOBER 2011

decrease employee turnover. Employees are able to work whenever and wherever they want, and individual dashboards track their performance metrics. The method worked. Since implemented, the firm raised revenue in 2009 and 2010, increased client and staff satisfaction and decreased turnover from 18 to 6 percent.

The relationship between staff and management will evolve as technology changes the workflow process and clients’ needs require a greater level of flexibility and adaptability. In “Grown Up Digital,” Tapscott writes that managers need to not just supervise, but also collaborate with their employees. While Millennial Generation accountants certainly are experts on technology, the insights and experience of a 20-year CPA can in no way be learned instantly or duplicated.

Rather than limiting staff to specific roles, collaboration engages staff and allows them the ability to tackle higher-level projects efficiently.

“Accountants need to move toward the complex, because those issues can’t be mechanized, outsourced or commoditized,” says Miranda. “A training and collaborative environment is critical to creating that foundation and keeping firms flexible to allow them to capitalize on those opportunities as they become available in the future.”

Work life in the accounting firm hasn’t changed too drastically in decades, but with flexible work schedules, virtual offices and a new generation of accountants, is this much change sustainable for a small accounting firm?

“One word: Results. At the end of the day, all of this has to work for your organization,” says Miranda. “Is what you’re doing delivering results and does

PRACTICE management it work for you and the staff? If it doesn’t work for you first, it’s not sustainable.”

“Only a fool would make predictions — especially about the future.”

— Samuel Goldwyn While the accounting firm of the future may take many shapes, we are confident three simple beliefs will make up its foundation: 1. Be even more insightful and proactive with clients.

2. Engage and challenge staff.

3. Constantly review and assess emerging technology and trends and adjust your plan accordingly.

When Brian Wendroff founded Wendroff & Associates in 2005, he had two things

going for him. First, he was part of Generation Y, a demographic that had grown up in the digital age, so he had an innate understanding of how one could leverage technology to not only improve efficiency and effectiveness, but also to transcend the communication and connection barriers complex tax and accounting issues created between firms and their clients.

After all, it would be a shame that if one day in the future people were to say, “Honey, pack up the car, let’s go to the accountant this year … You know, for old time’s sake.” n

DARREN WENDROFF is director of communications at Wendroff and Associates, LLC, in Arlington.

Contact him at darren@ wendroffcpa.com.

Secondly and perhaps most importantly, Brian, who was just 25 years old with only one year of public accounting experience to his name, had no business starting a CPA firm. But it was that naiveté that allowed him to grow the firm unencumbered by how firms are generally built and approach marketing and technology with a fresh set of eyes.

BRIAN WENDROFF, CPA, is managing partner at Wendroff and Associates, LLC. He started his own firm at just 25 years old.

Contact him at brian@ wendroffcpa.com.

The future of accounting may benefit from accountants looking at their organizations with a fresh set of eyes. Clients’ needs and demands will continue to evolve, and it is important that firm owners and managing partners discuss who their firms are and how their processes can be adapted to serve those clients.

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DISCLOSURES

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SEPTEMBER/OCTOBER 2011

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ACCOUNTING education

The Ph.D. Reality A roundtable discussion with accounting doctoral students MODERATED BY PHILIP UMANSKY, CPA, PH.D., AND GABRIELE LINGENFELTER, CPA

Have you thought about getting your Ph.D. and teaching America’s next accountants? Maybe you’ve been working in public accounting for a while and are looking for a new career path. Maybe you’re attracted to the challenges of leading a classroom. And if you haven’t thought about it, why not?

There is a growing shortage of academically qualified accounting faculty in the classroom. To reduce this shortage, the Accounting Doctoral Scholars (ADS) program was established with more than $17 million of support from the American Institute of CPAs (AICPA), 48 state CPA societies (including the VSCPA) and a wide range of CPA firms, including the Big Four.

Participant students receive $30,000 per year for up to four years to pursue a Ph.D. The students who participate must have a background in (and focus in their Ph.D. programs in) tax and audit, two areas in which there are significant shortages of qualified faculty.

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Of the 39 participating universities, one is Virginia Tech, which currently has three ADS students. Kathy Enget, CPA, and Joanna Garcia, CPA, entered in 2010, and Jon Pyzoha, CPA, began the ADS program in 2009.

We met with all three doctoral students along with their advisor, Jack Maher, Ph.D., in April 2011 for a roundtable discussion. What they have to say will provide information and inspiration for other young CPAs who may want to consider getting a Ph.D. and entering the often-overlooked field of accounting education.

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WHAT FACTORS OR MOTIVATORS CAUSED YOU TO DECIDE TO GET YOUR PH.D. AND ENTER ACCOUNTING EDUCATION? GARCIA: I looked at the different jobs I’d had, and different roles I’d played at those jobs, and one of the things I enjoyed was teaching. So whether I was instructing junior Marines or instructing new junior staff coming into Deloitte, I really enjoyed the teaching aspect — so I started thinking about ways to use that and started thinking about getting a Ph.D. I went back to talk to some of my professors at North Carolina State to get some more information about how it works, what they think of it and how they enjoy it (the pluses and minuses) and decided that it was something I wanted to do.

PYZOHA: My experiences were similar.

I was a senior associate at KPMG for my last two years at the firm. As a senior associate auditor, I worked with a lot of younger associates. I had the opportunity

ACCOUNTING education to mentor and teach them and I really enjoyed it. I also contacted some of my former professors and every professor I talked to expressed how much they loved their job. To hear how rewarding and enjoyable the career is from multiple professors motivated me to look into it and ultimately I decided to try it out.

ENGET: I also second the mentoring at the younger level, but thought about becoming a Ph.D. during my undergraduate years. I first started toying with the idea in my intermediate accounting class. I really enjoyed that professor, and we still have a really good relationship. However, I thought I could be a better professor if I had that practical experience so I could combine the both — not just have the book knowledge but have the practical experience as well. This is what led me to get the work experience before getting the Ph.D.

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MEET THE ROUNDTABLE

From left are moderator Gabriele Lingenfelter, CPA; Jack Maher, Ph.D.; Jon Pyzoha, CPA; Kathy Enget, CPA; and Joanna Garcia, CPA.

KATHY ENGET, CPA CAREER PATH: Two years as an auditor at a small local firm in South Dakota before getting a master’s degree at University of Texas at Austin. Then worked four years in forensics at KPMG in Dallas.

PH.D. FOCUS: Mainly audit. “I also hope to bring information systems into that realm somehow, as well as the fraud aspects.”

JOANNA GARCIA, CPA)

HOW HAVE YOUR EXPERIENCES IN PUBLIC ACCOUNTING PREPARED YOU FOR THE CHALLENGES FACED BY PH.D. STUDENTS? PYZOHA: Working long hours while in public accounting definitely helps now.

When you are in a Ph.D. program, there is a lot to do — you teach, you have class and you research. So you have to juggle all of these various activities. It was beneficial in public accounting to learn how to multitask. I have been able to carry that into the Ph.D. program. Also, learning how to mentor younger auditors has been helpful in the classroom.

ENGET: Yes the long hours did help, but the ability to manage multiple competing priorities, being a better presenter … all

CAREER PATH: Seven years in the Marine Corps and then got a master’s degree from North Carolina State. Then worked for Deloitte in Raleigh, N.C., in the tax department for around five years.

PH.D. FOCUS: Tax. “I was a tax accountant prior to coming here, so my focus is definitely in tax — looking at it more from an archival approach.”

JON PYZOHA, CPA CAREER PATH: Received master’s degree immediately following undergraduate degree, and then spent four years at Deloitte — one year in Chicago and three years in Columbus, Ohio.

PH.D. FOCUS: Audit. “I am interested in audit topics with a focus on behavioral, experimental research. Some of my interests are corporate governance and auditor independence.”

of those skills developed at KPMG have come back to help.

DO YOU FEEL THAT YOU HAVE A LITTLE MORE

FLEXIBILITY IN JUGGLING ACTIVITIES BECAUSE YOU CAN WORK ON WEEKENDS OR DID YOU WORK ON WEEKENDS [IN PUBLIC ACCOUNTING]? 

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ACCOUNTING education ENGET: I worked on weekends in public accounting. It is a little more flexible here in that you can work at home. It is still a lot of work.

GARCIA: Along with that, it would be easy to get lost in the flexibility, so having the discipline coming out of a professional environment where you have deadlines, and you have expectations, and you are being evaluated helps you remained focused. Also, from a purely technical perspective, having several years of work experience adds credibility in the

>>

classroom. We have stories to tell when we teach undergraduate accounting, “I had a client that did this,” or “I saw a case of this,” and I think that improves the learning atmosphere for students.

WHAT LIFESTYLE CHANGES HAVE YOU AND YOUR FAMILY MADE IN ORDER TO PURSUE THE PH.D. IN ACCOUNTING? PYZOHA: The move to Virginia was the biggest change for my wife and me, [but]

THE VSCPA LOVES PH.D.’S!

ENGET: For me, it was just moving me and my dog, so I did not have to worry about a spouse finding a job — that made it a little bit easier. Blacksburg is a great community [and] my dog has great day care, so he is just as happy as he was in Dallas. Lifestyle-wise, I have less time to do some of the fun things, and while I do notice the decrease in pay, it still allows me to live comfortably.

It was nice to return to the small-town atmosphere of Blacksburg after having lived in Dallas for five years.

PH.D. GRANTS: The VSCPA Educational Foundation awards a Ph.D. grant each year to help Virginia Tech and Virginia Commonwealth University, the only Virginia schools that offer Ph.D.’s in accounting, attract CPAs into their programs. Each school receives a $5,000 grant on alternate years and uses the money to supplement the stipend already offered to candidates.

GARCIA: One of the scary things about making this leap is getting rid of a paycheck and thinking, “How am I going to survive?” The ADS program does take a lot of that pressure off. And it helps coming to Blacksburg, where my bills are lower, and I’ve made overall lifestyle changes. I don’t have to go the dry cleaners every other week or go out to lunch during the work day, so it has been very natural. I don’t think there has been any time that I’ve said, “I can’t do this particular activity anymore.” I have definitely downsized, but it has not been a struggle.

AUSTIN M. CLOYD, MATTHEW G. GWALTNEY AND MAXINE S. TURNER DOCTORAL SCHOLARSHIP: Developed by the Foundation to honor and remember the lives of students of Virginia accounting families who were lost in the tragic events at Virginia Tech on April 16, 2007, this provides financial support to students pursuing a doctoral degree in accounting at Virginia Tech.

WHAT HAVE BEEN YOUR FAVORITE ASPECTS THUS FAR OF PURSUING YOUR PH.D.?

Supporting doctoral students and ensuring there’s a pipeline of qualified CPA candidates is a top priority of the accounting profession — and the Society, too.

Here’s what the VSCPA is doing to support Ph.D. candidates: ACCOUNTING DOCTORAL SCHOLARS (ADS) PROGRAM: Beginning in 2008–2009, the VSCPA and VSCPA Foundation joined more than 69 firms and 35 other state CPA societies with its commitment to the ADS program.

Individually, the VSCPA pledged $15,000 and the Foundation pledged $10,000 to support the program.

VSCPA PH.D. SCHOLARSHIP: Each year, the VSCPA Educational Foundation offers a $2,500 scholarship to a qualified accounting doctoral student.

WAIVED MEMBERSHIP DUES: The VSCPA waives all dues for the years in which fellow members return to the classroom full-time to complete a doctoral program. (Members have to reapply each year to receive the waiver.)

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the ADS program has allowed us to keep a comfortable lifestyle, which has been a great benefit of the ADS program.

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ENGET: Hands down, it has been all of the people I have met. Those people who have started in my cohort and all of the other people in the second, third, and fourth year — everybody has been really great. They have been very helpful, very forthcoming with information

ACCOUNTING education and helped me acclimate to the process.

The professors have all been wonderful people to work with — more than willing to share their knowledge and experiences and helping me to become the best researcher and teacher I can be. That has really been great for me.

PYZOHA: One of the biggest things I enjoy is the flexibility. When you are in public accounting, you always have to be at the client’s location and you don’t get to work from home as much. The ability to go home, read, be with the dogs and be with your wife is really nice. Teaching has also been great. I have really enjoyed building relationships with students. And also with my research, I have started to make some progress and I have enjoyed seeing the process.

GARCIA: I definitely second what Kathy said about the people. Everybody here has been great and that is really important. While I can’t say that I have loved every day here, I have yet to wish I was back in public accounting. So it has been a good transition. And while it has WHAT CHALLENGES HAVE been a lot of work, I am doing something YOU FACED SO FAR? really interesting, and something that will get me to where I want to go. It is like GARCIA: Initially, it has been a an adventure. I know where I want to go, challenge to find balance. Trying to find but how do IVA_Layout get there?1 7/7/11 2:54 PM Page that E-9002-0711 1 balance between the time I spend

teaching and preparing for teaching and then being a student in class and doing my own assignments. Just being in class every day is a big change. It has been several years since I was in college.

Also, trying to get started with research has been a challenge. I had experience teaching and instructing — that is what initially drew me into the Ph.D. program. But the research is completely new. It’s hard to figure out how to do it, how to generate ideas. I have to do a dissertation in four years. Okay, what does that mean and how do I get started?

That has been a challenge, and I’m sure all first-year students go through this.

No one comes in knowing how to do academic research. 

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SEPTEMBER/OCTOBER 2011

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ACCOUNTING education >>

FROM THE PH.D. PROGRAM DIRECTOR JACK MAHER, PH.D., an accounting professor in Virginia Tech’s accounting doctoral department, discusses the Accounting Doctoral Scholars Program.

EXPLAIN CPA INTEREST IN THE ACCOUNTING DOCTORAL SCHOLARS (ADS) PROGRAM. The Accounting Doctoral Scholars (ADS) program, administered by the American Institute of CPAs (AICPA) during the last three years, has had approximately 100 initial applicants each year who met the required criteria of a minimum of three years of professional accounting experience in either tax or audit. Sixty of those were invited annually to Chicago for the ADS conference, and approximately 30 annually were named as new ADS scholars. Each ADS scholar receives $30,000 per year for four years from the program (in addition to a waiver of tuition and fees). We are fortunate to currently have four ADS scholars at Virginia Tech.

The Department of Accounting & Information Systems Ph.D. program at Virginia Tech typically receives 50 applicants each year, from which we normally accept four. We extended this to five new entering students for 2010–2011 because of the exceptional quality of the applicants.

WHAT ARE THE MOST SATISFYING ASPECTS OF MANAGING AND DIRECTING THE PH.D. PROGRAM AT VIRGINIA TECH? The most satisfying aspect for me is to know that I play some role in recruiting and selecting those individuals who will become the next academic accounting professors and will likely be in the classroom teaching and mentoring U.S. accounting students for the next 20 to 30 years. My goal is to select individuals who will become excellent teachers and researchers, as well as be good role models and mentors for America’s university students. A total of 125 to 150 new Ph.D.‘s in accounting are granted each year across all universities the United States. The four new Ph.D.‘s who graduate from Virginia Tech each year will play an important role in leading the academic accounting profession and teaching aspiring young accountants.

Another satisfying aspect of my role as Ph.D. director is to be able to observe and assist young accounting professionals who were previously working in auditing, tax, etc. and help their transition in becoming a young accounting professor who will teach and research as a member of the university community. It is very satisfying to work with these fine individuals as they develop into good teachers and researchers during their four years at Virginia Tech, and then watch them become successful faculty members at high-quality universities.

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PYZOHA: My experience has been pretty similar. Getting back into the groove of being in classes all of the time was a bit of a challenge. Research is such a new thing as well. Without any experience doing it, it can be difficult to just pick up an academic article and read it. So the process of getting comfortable with that and understanding the statistics and the story behind what you are reading have been some of the biggest challenges of the program.

ENGET: The Ph.D. has been a completely different frame of mind.

The learning is different than all of the other schooling that I have done. It is no longer just regurgitating facts. It is really trying to understand the concepts and come up with something new and inventive and creative. So it has been a steep learning curve.

WHAT FACTORS SHOULD A CPA CONSIDER BEFORE PURSUING A PH.D. IN ACCOUNTING? ENGET: I considered why I really wanted to be here and whose life [I wanted to] impact by getting the Ph.D. I remind myself [of that] when I get frustrated and need that little pick-meup. From a more practical standpoint, how are you situated financially? I really tried to get my financial house in order, and my debts and those sorts of things, so that the monetary transition would not have as big an impact. Also [ask] yourself, are you coming into the Ph.D. program trying to get away from busyseason hours? If so, it might not be the right choice. Are you prepared for the level of commitment it is going to take?

ACCOUNTING education GARCIA: Definitely getting the finances in order, that is a big a deal. It is four or more years of giving up a fairly substantial paycheck that you can rely on. I also think, like what Kathy said, just know what you are getting into.

People may have this idea that being a professor means I just show up and teach a couple of classes a couple of hours per week, and I have my summers off and it is so easy. That is completely inaccurate!

Luckily, when I talked to people at the beginning of this process, everybody said it would be a lot of work, there is a lot of pressure, not only in the Ph.D. program but when you are at a university as a professor and working to get tenure — the pressure doesn’t let up. But no one that I ever talked to said they regretted it. They all thought it was a wonderful lifestyle and they really enjoyed doing it. So go into with your eyes open and know the good and the bad. It is going to be challenging, it is going to be hard — it is basically swapping a different set of pressures from what you were experiencing in public accounting.

PYZOHA: I definitely agree. I think the biggest thing is when you go into the Ph.D. program, you know you are going to be at Virginia Tech for probably four years, maybe five — some programs, maybe longer. It is a time commitment and you are probably taking a huge hit on your salary. But it is a decision for the long term, so you have to realize that when you get into it. You sort of have to take a “leap of faith” when you make the decision. You also have to know if you like to mentor and teach students and if you have that creative interest in accounting research.

OVERALL, HOW WOULD YOU DESCRIBE YOUR EXPERIENCE SO FAR?

on that path to get you to where you want to go. n

GARCIA: It has been fantastic. It is difficult, it is not an easy thing to do, it has been very challenging … but I find it very rewarding and I am happy to be here.

PYZOHA: I would not change my decision for anything. This was the best possible career decision I could make at the time and I would do it again.

The program has been great all around, including my experiences with faculty, fellow Ph.D. students and undergrads.

ENGET: I triple that. It has been an excellent experience — again, challenging at times but it is just keeping

PHILIP UMANSKY, CPA, PH.D., is associate professor of business at the Sydney Lewis School of Business at Virginia Union University and chairman of the Accounting and Finance Department, and a member of the VSCPA Editorial Task Force. Contact him at pumansky@vuu.edu.

GABRIELE LINGENFELTER, CPA, teaches accounting and auditing for the Luter College of Business and Leadership at Christopher Newport University in Newport News. She is a member of the VSCPA Editorial Task Force. Contact her at gabriele@cnu.edu.

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DISCLOSURES

• SEPTEMBER/OCTOBER 2011

23

ACCOUNTING education

A Vital Education: Accounting Students and Service Learning through VITA

BY GABRIELE LINGENFELTER, CPA, WITH PHILIP UMANSKY, CPA, PH.D.

The National Service Learning Clearinghouse defines service learning as “a teaching and learning strategy that integrates meaningful community service with instruction and reflection to enrich the learning experience, teach civic responsibility, and strengthen communities.” Other organizations similarly describe service learning as linking academics to the community. Service learning teaches through experiential education, encourages lifelong civic engagement and strengthens communities.

Service learning must be distinguished from volunteerism or community service.

Only service learning integrates service activity with the academic curriculum and engages students in reflection activities after their service experience.

Reflection exercises are structured to encourage students to make the connection between their service and their learning experience. These reflection exercises can include students keeping journals, providing class presentations and engaging in directed readings and small group discussions.

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Though service learning incorporates an academic component into volunteerism, accountants in general and CPAs in particular provide many hours of volunteer activities utilizing their professional skills, either individually or through their firms or professional associations. Service learning for accounting majors, either through accounting or liberal arts courses, can help instill the “volunteer spirit” before students enter the profession — in addition to providing important applications of accounting knowledge.

Some research also links volunteerism

ACCOUNTING education

to improved ethical decision making, which is continually emphasized in the profession.

UNIVERSITY SERVICE LEARNING CENTERS Over the last five to 10 years, many universities in Virginia have established service learning centers to assist faculty and students in engaging in service learning activities.

In 2008, Virginia Tech established the Center for Student Engagement & Community Partnerships. At the University of Virginia, the Office of University Community Partnerships connects academic life to community service, which supports service learning projects reaching more than 1 million people each year. And The College of William & Mary’s Office of Community Engagement and Scholarship supports professors and student organizations with implementing, finding and establishing service learning opportunities.

and social innovation to benefit the community and Christopher Newport University students and faculty.” Its vision relates to “establishing campuscommunity partnerships that empower students and faculty to meet communitydefined needs.”

While the Center has coordinated service learning elements at CNU, most departments offered service learning opportunities long before it was established. The Luter School of Business has offered the Volunteer Income Tax Assistance (VITA) Program since spring 2006.

and receive tax training in the classroom from an IRS employee in a workshop setting or via the training program “Link & Learn Taxes.”

Link & Learn is a web-based program that provides nine different training modules correlated to the type of return that will be prepared. Volunteers must complete the basic module to be certified in the most basic tax return preparation.

Students receive lessons that include tax topics, case studies and interview simulations.

CONNECTING STUDENTS AND VITA AT CNU

WHAT IS VITA?

Christopher Newport University (CNU), where I teach, established the Center for Service Learning and Social Entrepreneurship in January 2009. The Center provides a centralized office to supply resources and guidance and is staffed by three employees: a director, an assistant director and a secretary.

Volunteer Income Tax Assistance (VITA) is an IRS program designed to help lowto moderate-income taxpayers (generally with a household income of $49,000 or less) complete their annual tax returns at no cost. The program was originally started in 1971 at a California university to provide local taxpayers with free tax return preparation by accounting students. The program provided both a valuable community service and a handson learning experience for the accounting students, and it is now a nationwide program that serves thousands of taxpayers. VITA sites are located at community and neighborhood centers like schools and libraries.

The mission of the Center is to foster “a campus culture of meaningful service

Volunteers use tax preparation software, TaxWise, which is provided by the IRS,

I started developing the CNU VITA site in fall 2005 to offer accounting students an accounting-related volunteer activity and hands-on experience in tax preparation. Because I had previously worked at military VITA sites and coordinated the VITA program at my alma mater, Cameron University, in Lawton, Okla., I had experience with the program and working with volunteers.

Setting up a VITA site necessitates some pre-planning: The program requires a physical location with computers, volunteers trained in tax law and the software, and a marketing plan to attract student volunteers and to advertise the program.

CNU’s VITA volunteers complete the Individual Income Tax course in the 

DISCLOSURES

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SEPTEMBER/OCTOBER 2011

25

ACCOUNTING education

CNU School of Business, and I do not provide any additional instruction on tax law to prepare them to take the Link & Learn online tests. I require that the volunteers complete the Link & Learn basic test prior to returning for the spring semester.

On a Saturday afternoon in January, I meet with the volunteers in the computer lab to provide the TaxWise software training, which lasts four to five hours.

In order to conduct the training, we use the scenarios of the intermediate and advanced training modules. Based on the information on the completed TaxWise returns, the students will then finish the intermediate and advanced Link & Learn tests. Some students choose to complete other, more advanced modules in addition to the basic, intermediate and advanced.

Fortunately, I have not had any challenges getting students interested in participating in VITA. I usually announce the VITA program in the fall to my auditing class and the Accounting Club members. Over the last four years, about 15 seniors have taken part in VITA each tax season.

Marketing to the community occurs via a number of outlets. The IRS advertises the program and site locations on its website, its local offices and at other VITA sites.

CNU does a news release that appears on its website, in local papers and on some local radio stations as a public service announcement.

Additionally, business faculty announce the program in their classes. I was also interviewed on the local TV channel twice about the program. The best marketing,

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•

however, comes from word of mouth.

Over the years we have built a loyal clientele who return year after year and promote VITA to friends and relatives.

THE STUDENT COMMITMENT The students’ class schedule dictates the opening hours of the VITA site each spring. Usually, the site is open two days a week, from noon until 7 p.m.; Saturday hours are quite popular with the taxpayers.

Each volunteer has to work at least two hours per week, but most students contribute many more hours. Students work in teams of two: A team interviews a client, and after the interview, one student inputs the information in the computer and the other completes the quality review of the completed return. The students mark the return as finished, and I e-file returns at the end of the day. As the site coordinator, I am at the VITA site when the students are volunteering to answer questions or help with technical difficulties.

A short, reflective survey at the end of filing season reveals that student volunteers enjoy the engagement with the community while gaining practical experience.

“VITA is a valuable resource for both the community and students,” said CNU alumnus John Hirlinger, CPA, a former volunteer. “It enables taxpayers to obtain tax services from knowledgeable preparers where they

SEPTEMBER/OCTOBER 2011

might not normally have such access.

VITA allows student volunteers to gain experience preparing taxes, enriching their academic careers and preparing them for success on the CPA Exam.”

TAXPAYER FEEDBACK We administer a short survey to each taxpayer when the return is finished to ask: 1.) if the taxpayer is a CNU student, faculty or staff or other; 2.) if this is his/ her first time using the CNU VITA site; and 3.) how the taxpayer learned about the VITA site. The survey also leaves room for comments.

Based on survey results, approximately 90 percent of the VITA site users are taxpayers from the community. The remaining 10 percent are CNU staff and students.

A Hampton schoolteacher comments on her experience with VITA: “My youngest daughter had graduated high school and was going off to college.

When filling out the FAFSA for her, [we realized it was] to our advantage that taxes are prepared as soon as possible.

This is why VITA was chosen in the beginning. I received accurate and excellent service. After meeting the students and staff, who are always very professional, I have returned year after year. VITA is an excellent program, and I am grateful to have this program in my community.”

Other comments from the surveys include: “So glad you have this service.” “Well pleased with the service

ACCOUNTING education

and personnel that completed the taxes.” “Appreciated the service and friendliness of the staff and students.”

VITA AND OTHER UNIVERSITIES Other Virginia universities have active VITA programs as well. Dr. P. Michael McLain, assistant professor at Hampton University, has run Hampton’s VITA program since 1999. The Hampton University VITA site is one of the most active on the Virginia peninsula.

“The VITA program gives students skills such as interviewing people in regards to their personal financial information, which is needed to prepare a tax return,” McLain said. “The program also teaches them to think analytically because they have to search out information which may not be provided by the taxpayer, but will help prepare an accurate tax return. An example would be that if an individual itemizes, ask about personal property taxes for their car. The program provides a real-world situation in tax compliance.”

According to a survey of Virginia educators, completed at the VSCPA Educators’ Symposium in June 2011, about half of Virginia institutions are using some sort of service learning center. Northern Virginia Community College allows all students to participate in VITA. At Ferrum College, students can participate numerous years and earn 1 hour of college credit each year. Tidewater Community College encourages VITA because it provides

>>

SERVICE LEARNING IN VIRGINIA

A survey of 12 accounting educators at Virginia colleges and universities gleaned the following responses. The survey was conducted at the VSCPA Educators’ Symposium in June 2011.

• Five of Virginia’s colleges/universities, among those surveyed, have a service learning center.

• All respondents said their institutions encourage service learning activities, even if they do not have a specific center or office for those activities.

• Eight respondents said their institutions offer a Volunteer Income Tax Assistance (VITA) program.

• At four of those institutions, VITA volunteerism is open to all students, regardless of major.

• Four institutions offer course credits for VITA volunteerism.

hands-on practice and experience in tax preparation. See the box above for survey results.

provide a sense of public service that will serve both you and the profession well into the future. n

For accounting educators, if you do not have a VITA site on your campus, Virginia Union University professor Phil Umansky, CPA, and I highly encourage you to set up a site. While coordinating the site does take time, helping the community and students is very rewarding. I have considered other accounting-related service learning activities, but found VITA to most closely linking academia to the community.

For CPA firms recruiting entry-level accountants, we encourage you to ask if the applicant has participated in VITA. And for VSCPA student members, consider taking part in VITA. It will

DISCLOSURES

GABRIELE LINGENFELTER, CPA, teaches accounting and auditing for the Luter College of Business and Leadership at Christopher Newport University in Newport News. She is a member of the VSCPA Editorial Task Force. Contact her at gabriele@cnu.edu.

PHILIP UMANSKY, CPA, PH.D., also contributed to this article. He is associate professor of business at the Sydney Lewis School of Business at Virginia Union University and chairman of the Accounting and Finance Department, and a member of the VSCPA Editorial Task Force. Contact him at pumansky@vuu.edu.

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SEPTEMBER/OCTOBER 2011

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ACCOUNTANTS-TO-BE: YOUR FUTURE IS BRIGHT!

A special section just for student members of the VSCPA

Get the Most From Your Membership As a VSCPA student member, you’re entitled to helpful resources, discounts, networking opportunities and much more. Make sure you’re using your VSCPA membership to your full advantage! Check out the following resources: • Stay up to speed with the VSCPA’s professional publications, including Disclosures bimonthly magazine and the eDisclosures and Footnote monthly e-newsletters.

• Sign up for a mentor, who can answer your questions and help you make smart academic and career decisions, through the CPA Connection program.

• Apply for the VSCPA Educational Foundation’s accounting scholarships. (See page 40 for information.)

• Put money back in your pocket with incredible discounts.

Save: o $300 on Becker CPA Exam review courses o 25 percent on any of 175 tax and accounting titles from CCH o 30 percent on ExamMatrix CPA Exam review materials o 30 percent on CPA Exam prep courses from Kaplan o Up to 8 percent on GEICO car insurance o Up to 50 percent on select supplies from Office Depot o Up to 30 percent on select UPS mailing services o And more!

• Plug in to the VSCPA website, www.vscpa.com, where you can get great accounting tips and news, view accounting internship opportunities, search for future employers and more.

• Network with more than 10,000 VSCPA members across the state who can offer you real-world advice — and maybe even a job!

• Access the current accounting salary guide published annually by Accountemps.

• Apply for jobs posted to the VSCPA Career Center and LinkedIn. • Find volunteer opportunities including the CPA Day of Service.

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SEPTEMBER/OCTOBER 2011

• Plus, list VSCPA membership on your résumé to indicate your professional commitment and involvement to potential employers. n

STUDENT section

HOT TOPICS >>

News You Need to Know INTERNSHIPS PAY OFF WITH FULL-TIME JOBS If you’re looking to get your foot in the door with an employer, there’s increasing evidence that an internship could be just what you need.

According to the 2011 Internship & Co-op Survey, conducted by the National Association of Colleges and Employers (NACE), responding organizations reported converting an average of nearly 58 percent of their interns into full-time hires, the highest conversion rate since NACE started tracking the statistic on an annual basis in 2001. An average of 39 percent of entrylevel hires from the class of 2010 came from employers’ own internship program.

In addition, 87 percent of interns offered a full-time job in 2010 accepted it, the highest percentage in the survey’s history.

COLLEGE HIRING, STARTING SALARIES ON THE RISE According to another NACE survey, the average starting salary to the class of 2011 rose 5.8 percent.

The summer issue of NACE’s Salary Survey, released in July, showed an average overall salary of $51,108, up from $48,661 in summer 2010. The average starting salary increased from the previous year for the third consecutive quarter.

That wasn’t the only positive sign the survey showed. Among the disciplines that saw their average offer change, more than 82 percent saw the average offer gain ground.

Accounting majors saw a 2 percent increase from the previous year.

In addition, after two years of slow hiring, major corporations are beginning to hire new graduates again.

VITA EXPERIENCE COULD BE VITAL Volunteer Income Tax Assistance (VITA) is an Internal Revenue Service (IRS) program designed to help low- to moderateincome taxpayers complete their annual tax returns at no cost.

The program was founded in 1971 to provide taxpayers with free tax return preparation by accounting students, providing a valuable community service and great experience for students.

(See page 24 for more information.)

Get great experience as you begin your accounting career path!

VITA sites are open at Christopher Newport and Hampton universities and at other sites in Jonesville, Petersburg, Richmond, Virginia Beach and Wytheville. Call the VITA Site Locator at (800) 906-9887 for more information.

KEEP TABS ON YOUR EXAM PROGRESS Taking the CPA Exam? The VSCPA is here to help you plan.

With the VSCPA Exam Tracker, you can monitor your progress throughout the CPA Exam and connect with other members who are taking the Exam. To create your VSCPA Exam Tracker profile, visit www.vscpa.com/ExamTracker. n

CONGRATS, SCHOLARSHIP WINNERS! >>

The VSCPA Educational Foundation awarded nearly $35,000 in scholarships for the 2011–2012 academic year. For a full list of scholarship recipients, visit the “Scholarships & Grants” section of www.VSCPAFoundation.com.

DISCLOSURES

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STUDENT section TOP TALENT HITS TECH >>

Fifth Leaders’ Institute Attracts Rising Stars literacy and networking workshops and interactive break-out sessions like “How to Interview Your Future Employer” and “I’ve Got a Salary, Now What?”

More than 70 of Virginia’s top accounting students journeyed to Blacksburg for the fifth Leaders’ Institute on June 24–26 at Virginia Tech. The Institute, a partnership between the VSCPA and accounting and consulting firm Baker Tilly Virchow Krause, provides future CPAs with handson leadership training and real-life skills to help them successfully transition into the marketplace.

The program started with a $100,000 gift from Baker Tilly (then Beers + Cutler) in 2007 and grew with the generous support from numerous sponsors (see box at right). The event focused on careerbuilding skills and tools of the accounting trade. Students took part in financial

In the past, these programs and mock interviews with accounting firms have helped students sharpen their interviewing skills and even led to job offers (see page 40). The Institute is the only development program of its kind in Virginia.

“The biggest thing that hit me was that while we were all accounting students, there is so much more out there, and accountants don’t really get the credit for all they do,” Old Dominion University graduate student Sara Crabtree said. “The Leaders’ Institute really opened my eyes to all the opportunities that are available to young people to fulfill our need and passion as accountants.”

Interested in attending the 2012 Leaders’ Institute? Apply for a VSCPA Educational Foundation scholarship or speak with your professors about the nomination process. For more information, visit www.VSCPAFoundation.com. n

THANK YOU, LEADERS’ INSTITUTE SPONSORS >>

Baker Tilly Virchow Krause Becker Cherry, Bekaert & Holland Cotton & Company Deloitte Ernst & Young Johnson Lambert & Co. LLP Kearney & Company KPMG McPhillips, Roberts & Deans, PLC National Association of Black Accountants PGBH PricewaterhouseCoopers RyanSharkey U.S. Government Accountability Office Virginia Auditor of Public Accounts Wall, Einhorn & Chernitzer Watkins Meegan Yount Hyde & Barbour

“If you don’t understand something in your beginning level classes, make sure to ask for assistance from both friends and your professors.

Accounting is a subject that is built upon a foundation of what is taught in previous courses. Don’t get left behind!”

— JOHNNY AMIN, 21, George Mason University

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DISCLOSURES

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SEPTEMBER/OCTOBER 2011

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VSCPA self-assessment Complete this 12-question test and submit to the VSCPA for 1 CPE credit. A 75 percent or better pass rate is necessary to receive credit. Exams will not be graded until after the submission deadline.

After your exam is graded, you will receive either a certificate of completion via email for your records or an email notification that the 75 percent grade was not met.

SUBMISSION DEADLINE: October 31, 2011. Exams received after this date will not be graded and your money returned.

COST: $15 for VSCPA members / $30 for nonmembers.

Please note that this exam will not be live online until September 1, 2011.

SUBMISSION INSTRUCTIONS You may submit this selfassessment and make the exam payment online at www.vscpa.com/ September2011DisclosuresExam.

You may also circle your answer to each question and mail this paper exam to: CPE Team Virginia Society of CPAs 4309 Cox Road Glen Allen, VA 23060 Fax submissions are acceptable to (804) 273-1741.

Name _________________________ Address _______________________ _______________________________ Email Address ___________________ Date __________________________ Method of Payment

• Check (payable to the VSCPA) • Credit card Credit Card Number _______________________________ Expiration Date ________________ Signature _____________________ Date

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_________________________

DISCLOSURES

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1. A CPA firm’s value proposition is: a. An elevator speech. b. The reason clients keep coming back. c. A foot in the door. d. Only about what a firm promises.

2. To create a better value proposition, firms can: a. Offer a broad array of services without a specific focus. b. Consistently research their target audience. c. Rely on business collateral to communicate the firm’s services. d. With clients, only discuss the services they were hired to perform.

3. To build a future-forward accounting firm, firms can: a. Require all employees to work all hours in the office. b. Avoid investing in Customer Relationship Management systems. c. Establish a well-defined internship program. d. Maintain its current technologies but avoid making many changes or upgrades.

4. Y, Z and Millennial generations: a. Will expect similar things of accounting firms 10 years from now as they do today. b. Respond best to the four P’s of marketing. c. Will want to research and purchase services where and when they want. d. Are not interacting on social networking websites.

5. Which statement does not describe cloud computing? a. Anyone with the right computer, passwords and settings can access any document. b. Billion-dollar computer and technology companies are investing in cloud computing. c. Many practitioners are wary of the security and reliability of cloud computing. d. Cloud computing can reduce technology costs, but does not enhance collaboration.

6. Managing employees in the future will include: a. Offering increased workplace flexibility. b. Collaborating with employees rather than just supervising. c. Not limiting staff to specific roles. d. All of the above.

7. Which statement does not describe the Accounting Doctoral Scholars (ADS) program? a. The ADS program was established to address a growing shortage of academically qualified accounting faculty in the classroom. b. The program is financially supported by the

SEPTEMBER/OCTOBER 2011

American Institute of CPAs (AICPA) and state CPA societies, but not CPA firms. c. Participants receive $30,000 per year for up to four years to pursue a Ph.D. d. Individually, the VSCPA pledged $15,000 and the VSCPA Foundation pledged $10,000 to support the program.

8. CPAs returning to school to get doctoral degrees cite the benefits as: a. Learning from professors willing to share their knowledge and experiences. b. Work/life flexibility. c. Building relationships with students. d. All of the above.

9. Which of the following does not describe service learning? a. Service learning is the same as volunteering or community service. b. Service learning is a teaching and learning strategy that integrates meaningful community service with instruction. c. Reflection exercises are structured to encourage students to make the connection between their service and their learning experience. d. Service learning can help accounting students apply their accounting knowledge while in school.

10. The Volunteer Income Tax Assistance (VITA) Program: a. Is run by the Virginia Department of Taxation. b. Assists moderate- to high-income taxpayers. c. Is a nationwide program serving thousands. d. Is available to taxpayers for a small fee.

11. Which does not describe the VITA program in Virginia? a. The Hampton University VITA site is one of the most active on the Virginia peninsula. b. All schools require student volunteers to be accounting majors. c. Some schools offer course credits for VITA volunteerism. d. A survey of VITA users at the Christopher Newport University site shows that a majority of users are taxpayers in the community.

12. Recent surveys demonstrate that accounting graduates: a. Do not typically take jobs at the companies where they intern. b. Can expect a lower average starting salary than was offered to the class of 2010. c. Can expect more firms hiring for other roles beyond taxation, accounting/auditing and management information systems. d. Are facing smaller job prospects as the majority of the largest firms decrease hiring.

Attention CPAs: Whether A Decision Maker Looking To Upgrade Your Talent, Or A CPA Looking to Upgrade Yourself/Your Skills, Ask Yourself: Who really chose who in joining your company?

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

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

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VSCPA financials

Statements of Financial Position & Statements of Activities The following Statements of Financial Position and Statements of Activities reflect the VSCPA’s and CPA PAC’s financials for the 2010–2011 fiscal year. The full audited financial statements are available online in the “For Members” section of www.vscpa.com.

More information on the VSCPA’s 2010–2011 programs and initiatives is available in the 2010–2011 “State of the VSCPA” report, also available at www.vscpa.com.

APRIL 30,

2011

2010

ASSETS Current Assets Cash and cash equivalents Trade accounts receivable Due from VSCPA Educational Foundation Investments Prepaid expenses

$

1,835,828 62,987 9,000 189,153 196,516 2,293,484

Total current assets Property and Equipment, Net

$

1,345,356 51,999 12,000 169,557 157,699 1,736,611

1,439,466 $

3,732,950

1,377,033 $

3,113,644

LIABILITIES AND NET ASSETS Current Liabilities Accounts payable Accrued expenses Pledges payable Deferred revenues Accrued retirement

$

Total current liabilities

50,681 165,953 3,000 422,394 111,223 753,251

$

35,415 65,346 3,000 258,871 127,235 489,867

Total liabilities

6,000 759,251

9,000 498,867

1,439,466 555,488 701,653 175,260 2,871,867 101,832 2,973,699 3,732,950

1,377,033 520,213 418,846 238,103 2,554,195 60,582 2,614,777 3,113,644

Long-term Liabilities Pledges payable

Net Assets Unrestricted: Invested in property in equipment Board designated for building improvement Board designated for operating expenses Undesignated Temporarily restricted (CPA PAC)

Total net assets $

34

DISCLOSURES

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SEPTEMBER/OCTOBER 2011

$

VSCPA financials YEARS ENDED APRIL 30,

2011

2010

Change in Unrestricted Net Assets Revenue:

Program: Continuing education Seminars Conferences Ethics In-House Peer review Membership Public relations Student and educator outreach Net assets r eleased from restriction, CPA PAC

$

1,409,865 493,169 462,582 154,951 161,174 1,944,195 724 107,360 27,560 4,761,580

Other: Royalties Investment income Realized gain on investments Unrealized gain/loss on investments Rental income Gain on disposal of fixed assets Miscellaneous

Total support and unrestricted revenues Expenses: Program Services: Continuing education Leadership Peer review Membership Communications Student and educator outreach Public relations Legislative CPA PAC Supporting Services: Administrative and general

Total expenses Change in unrestricted net assets Change in Temporarily Restricted Net Assets Investment income Contributions to the CPA PAC Net assets released from restriction, CPA PAC

Change in temporarily restricted net assets Change in net assets Net Assets — Beginning of Year Net Assets — End of Year

$

$

1,369,514 465,456 431,160 129,195 156,295 2,054,007 2,999 81,718 29,989 4,720,333

173,500 13,382 8,884 23,238 73,262 1,400 90 5,055,336

173,500 11,318 3,326 34,575 75,437 — 1,815 5,020,304

1,981,558 312,945 154,585 598,125 199,119 194,771 228,376 149,025 27,560

1,967,600 246,662 177,971 780,920 204,825 186,616 223,557 160,143 29,989

891,600 4,737,664 317,672

820,971 4,799,254 221,050

— 68,810 (27,560) 41,250 358,922 2,614,777 2,973,699

— 42,652 (29,989) 12,663 233,713 2,381,064 2,614,777

DISCLOSURES

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$

SEPTEMBER/OCTOBER 2011

35

VSCPA news

Member Michael Wilkerson Receives CFO Award bank examiner with the Federal Reserve Bank of Richmond and five years with the Markel Corporation as an internal auditor and manager of accounts receivable.

Wilkerson’s favorite part of his job is getting a big-picture look at his company.

“The biggest thing I like about it is that it gives you an overall view of how a company is performing, how it runs,” he said.

“Everything is based off of numbers, whether it’s sales, whether it’s operations or new products. Everything comes down to accounting and ‘Does it make sense?’”

The VSCPA also congratulates its members who were selected as award finalists (see below). n VSCPA member Michael Wilkerson, CPA, was honored with a nomination for last year’s Virginia CFO Awards, presented by Virginia Business magazine and the VSCPA. He didn’t win, but he did learn something from the experience.

“I was there at the event last year, so I prepared some remarks in case I won,” Wilkerson said. “Like the lady sitting next to me at the table, she won last night. … She stood up and said ‘I’m supposed to say something?’ She was taken completely off guard.

You go once and you learn. I was going to have something to say.”

It’s a good thing Wilkerson came to this year’s June 23 awards ceremony prepared. He was honored as the top winner in the “Small Private Company” category for his work with Ashlandbased Richmond Group, LLC, and Dominion Equipment Parts, LLC. Wilkerson, a Chesterfield native and Mechanicsville resident, majored in finance at Radford University after graduating from Monacan High School. He decided, along with two friends, to sit for the CPA Exam — “Misery loves company,” he says — and began taking accounting classes at Virginia Commonwealth University. He received his CPA license in 1996.

Before joining the Richmond Group, he spent eight years as a

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DISCLOSURES

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SEPTEMBER/OCTOBER 2011

VSCPA MEMBERS HONORED AT VIRGINIA CFO AWARDS >>

SMALL NONPROFIT ORGANIZATIONS Christopher Markwith, CPA, Patient Services, Inc. SMALL PRIVATE COMPANIES Barbara Dillon, VSD LLC Linda Keith, CPA, Innovations in Transportation, Inc. Gerald MacAulay, CPA, Radio Communications of Virginia, Inc. LARGE PRIVATE COMPANIES Mark Baker, CPA, The Whitlock Group Shelley Fink-Brackett, CPA, The Casey Automotive Group PUBLIC COMPANIES Clyde McFarland, CPA, TowneBank

VSCPA news

Congratulations to the following members!

NEW HIRES >> RICK SCHNEIDER, CPA, has joined

the Tysons Corner office of Cherry, Bekaert & Holland LLP as a tax partner in the Real Estate and Construction and Technology and Life Sciences groups.

JERRY WHITAKER, CPA, took over as

Powhatan County’s director of finance and administration May 3.

PROMOTIONS >> DEBORAH HARRIS, CPA, has been

promoted to associate principal at The Burdette Smith Group, PC, in Fairfax.

RYAN MCENTIRE, JEFF SMITH, CPA, CHRIS WINGFIELD, CPA, and NORMAN YODER, CPA, were named

partners at Brown, Edwards & Company, LLP. CHRISTOPHER BANTA, CPA, JEFFREY BARBOUR, CPA, and HOLLY RUTHERFORD, CPA, were named firm directors.

Sector Financial Excellence Award from the Association of Government Accountants.

DAPHNE SWANSON, CPA, was

named president of Junior Achievement of Central Virginia, which teaches schoolchildren about financial literacy, work skills and entrepreneurship.

FIRM NEWS >> COUNCILOR, BUCHANAN & MITCHELL, PC, a Washington, D.C.-

area firm, placed eighth in the Rod N’ Reel Captain’s Association, Inc., Pro-Am fishing tournament in April. The firm donated its $400 winnings to The Yellow Ribbon Fund, Inc., which provides support to injured service members and their families as they recuperate at military medical centers.

PLC, has been honored as “Best of

Loudoun County” by Leesburg Today.

VSCPA STAFF NEWS >>

TowneBank has appointed WESLEY BARNES, CPA, to its Chesapeake Board of Directors.

Marketing Specialist JANE HAYES celebrates her eighth anniversary with the VSCPA on September 22.

in Roanoke, received the Paul Harris Fellowship Award from the Smith Mountain Lake Rotary Foundation.

OLIVIA HUTTON, CPA, and CHRIS PEARSON, CPA, have been named

principals at Yount, Hyde & Barbour, PC. EDWARD MAZUR, CPA, senior advisor

for public sector services at Clifton Gunderson LLP, received the Private

In the July/August issue of Disclosures, Vice Chair ROY D. PETERS, CPA, was inadvertently left off the list of the 2011–2012 VSCPA Board of Directors.

There was also some misidentification in the Board of Directors photo on page 32. CARL HOECKER, CPA, was incorrectly identified as Board member JAMES PHILLIPS, CPA, and Phillips was incorrectly identified as GARY ROMER, CPA. The VSCPA appreciates the service of its Board members and sincerely regrets the errors. n

WE WANT TO HEAR ABOUT IT! >>

UPDEGROVE, COMBS & MCDANIEL,

APPOINTMENTS & AWARDS >>

MIKE BELL, CPA, of Anderson & Reed

CORRECTIONS >>

Project Planner TARA PENNINGTON marks three years with the VSCPA on October 6.

Executive Assistant PAMELA ROBERSON celebrates her second anniversary with the Society on September 14.

The VSCPA welcomes Public Relations Specialist HILLARY CROWDER, who began May 31, and Education Assistant ANITA POUNCY, who began July 5.

DISCLOSURES

Email disclosures@vscpa.com if you have exciting news to share. The VSCPA prints news of members’ awards, appointments and promotions as well as new hire and job change announcements. Firm news, as well as mergers and acquisitions, is also welcome.

A GREAT YEAR, RECAPPED >>

STATE OF THE VSCPA REPORT The VSCPA’s 2010–2011 membership year ended April 30, 2011. If you’re curious what the Society was up to last year, now’s your chance to see it all in a glance. Visit www. vscpa.com/2011AnnualReport to check it out.

•

SEPTEMBER/OCTOBER 2011

37

VSCPA news WE’VE GOT A WINNER >>

New VSCPA Brand Wins Commonwealth Award The goal of the new “I Am the VSCPA” brand was to resonate with VSCPA members and make them feel more connected to the Society — all in a clean, refreshing design.

And now the Richmond Chapter of the Public Relations Society of America (PRSA) has recognized the new brand for its excellence.

The brand campaign won a “Commonwealth Award of Merit” earlier this year in the reputation/brand management category of the 2011 Commonwealth Awards, the 64th annual Virginia public relations awards program. The statewide awards competition honors organizations and companies statewide for excellence in public relations.

As nonprofit associations nationwide were facing significant declines in membership due to tough economic times, the VSCPA wanted a fresh approach to increase credibility and build recognition as the “home” for Virginia CPAs. The Society formally launched the new brand campaign at the May 2010 Leaders’ Summit. The brand centers on one fundamental concept: the association’s biggest asset is the people who join together to create a community. n

The VSCPA mourns the loss of: JULIAN W. JOHNSON, III, CPA, a

VSCPA life member from Fairfax. He graduated from Strayer College and was a founding partner of the former Vienna firm Johnson & Scarborough. He served on multiple VSCPA committees, including terms as chair of the Professional Ethics Committee and the Public Relations Committee.

WILLIAM H. TALLEY, CPA, a VSCPA life

member from Richmond. He graduated from the University of Richmond and spent his early career with LaVogue Corporation before starting his own firm, which he ran for 41 years. n

QUALIFIED CANDIDATES

FOCUS YOUR SEARCH AND GROW. The new VSCPA Career Center makes searching for jobs or candidates more efficient, leaving you more time to focus on growing your business opportunities. Simply set up an Agent and receive updates whenever jobs or resumes matching your criteria are first posted.

(800) 733-8272 WWW.VSCPA.COM

VSCPA HP_CR.ad.indd 1

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DISCLOSURES

PROFESSIONAL PROFILES SEARCHABLE PORTFOLIOS AFFORDABLE JOB POSTINGS RESUME ACCESS INCLUDED

V S C PA C A R E E R C E N T E R JOB SEEKERS | EMPLOYERS

5/11/2009 2:41:44 PM

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SEPTEMBER/OCTOBER 2011

VSCPA news

VSCPA 100% Member Firms VSCPA 100% Member Firms show their commitment to their employees, the profession and the association. A 100% Member Firm is simply a Virginia CPA firm or company that has all of its CPAs enrolled as members in the VSCPA. Interested in being listed as a 100% Member Firm? Contact VSCPA Member Relations Director Brenda Fogg at bfogg@vscpa.com or (804) 612-9409.

THANK YOU FOR YOUR COMMITMENT, 100% MEMBER FIRMS! Anderson & Reed, LLP Barnes, Brock, Cornwell & Heilman PLC Beale & Curran, PC Beck & Company, CPAs, PC Bennett, Atkinson & Associates, PC BlackHeath Company, PLC Bowling, Franklin, & Co., LLP Boyce, Spady & Moore PLC Britt & Peak, PC, CPAs Burgess & Co., PC, CPAs Cameron, Moberly & Hamrick, PC Charles S. Pearson, Jr., CPA Charles W. Snader, P. C. Cherie A. James, CPA, PLC Chesapeake Accounting Group PC Cole & Associates CPAs, LLC Coley, Eubank & Company, PC Corbin & Company, PC Craver, Green and Company, P.L.C. Creedle, Jones and Alga, PC CST Group, CPAs, PC Dalal & Company David L Zimmer CPA PC Didawick & Company, PC Dominion Benefits Donald W. Coleman, CPA, Inc., PC Douglas L. Thompson, CPA PLLC Duvall Wheeler, LLP Eggleston & Eggleston, PC Elmore, Hupp & Company, PLC Forrest & Markos Frank Edward Sheffer & Company Fritz & Company, PC GL Roberson CPA, PLLC Garland & Garland, CPAs, PC Garris and Company, PC Gregg & Bailey, PC Gregory & Associates, PLLC Hantzmon Wiebel Harris, Harvey, Neal & Co., LLP Henry R. Hortenstine III, CPA, PC Holland & Brown LLP

Homes, Lowry, Horn & Johnson, Ltd. Honeycutt & McGuire CPAs Jay E. Reiner CPA PLLC John M. Watkins, CPA Jones, Adams & Delp, PC Jones, Madden & Council, PLC Keiter, Stephens, Hurst, Gary & Shreaves, PC Kositzka, Wicks and Company Kuehl Shepherd Kozlowski & Associates, Inc. L.P. Martin & Company, PC Lane & Associates, PC Larry D Greene CPA PC Lent & Hawthorne, PC M. Lee Winder & Associates, PC Martin, Beachy & Arehart, PLLC McPhillips Roberts & Deans PLC Michael B. Cooke, CPA, PC Michael R. Anliker, CPA, PC Miller Foley Group Mitchell, Wiggins & Company, LLP Moss & Riggs, PLLC Murray, Jonson, White & Associates, Ltd., PC PBGH R.T. McCalpin & Associates Renner & Company, CPAs, PC Roger L. Handy, PC Rubin, Koehmstedt & Nadler, PLC Russell, Evans & Thompson, PLLC Rutherford & Johnson, PC Scheulen, Patchett & Edwards, PC Sells, Hogg & Jones, CPAs, PC Spencer, Hager & Mosdell, PC Stephen Merritt CPA, PC Steve Guy & Associates, PC Strickland & Jones, PC Sullivan, Andrews & Taylor PC Swart, Lalande & Associates, PC Terry L. Jones, CPA, LLC The Burdette Smith Group, PC Thomas E. Fraley, CPA Thompson, Greenspon & Co., PC Tongelidis Consulting, LLC Updegrove, Combs, McDaniel & Wilson, PLC Valderas & Fishel, PC Walker Consulting Group

Wall, Einhorn & Chernitzer Wells, Coleman & Company, LLP Yount, Hyde & Barbour, PC

The above list was compiled July 1, 2011.

Check www.vscpa.com/100Percent for a complete, up-to-date list. n CHAPTER NEWS >>

Thomas Jefferson VSCPA Chapter upcoming events For more information, contact Victoria Jones at vjones@monticello.org.

Sept. 16: CPE & networking event Sept. 23: CPA Day of Service Oct. 18: CPE event Nov. 16: Ethics CPE event and election of 2012–2013 officers

Northern VSCPA Chapter Members of the Northern Chapter are eligible for free admission to the George Mason University Tax & Accounting Conference, set for Nov. 15 from 8 a.m. – 3:30 p.m. Registration is currently open.

Attendees still must pay $10 for lunch and $65 for the Ethics class if they choose to take that session. The regular dinner meeting of the NCVSCPA will be held immediately following the conference.

For more information, visit http://som.gmu.edu/tac. n

DISCLOSURES

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SEPTEMBER/OCTOBER 2011

39

VSCPA educational foundation LEADERS’ INSTITUTE SUCCESS >>

VCU Student Gets More than He Bargained For Johnathan Culbreath signed on for the 2010 Leaders’ Institute looking to get some interview experience before he graduated from Virginia Commonwealth University (VCU).

He got that, but before the summer was over, he had a job.

Culbreath graduated from VCU in May 2011 and will start a job with Johnson Lambert & Co. LLP in October. His first contact with the firm came at The Leaders’ Institute, and he did well enough that a mock interview turned into a real one.

“I wasn’t even planning on doing the mock interview section, seeing as I’d had lots of interviews,” Culbreath said. “I also didn’t want to get down there that early. But a friend of mine who was also going convinced me to do it with her. I ended up getting Johnson Lambert in my mock interview. It’s funny because when I had my interview, [the interviewer] gave me lots of pointers and tips. She gave me so much advice — I guess you’d call it constructive criticism — that I didn’t think I did that well.”

That interviewer was Katie Tibbitts, a recruiter at Johnson

40

Lambert. She was impressed enough to recommend him for a second interview with the company, and he did well enough in that phone session to score a job as a staff auditor.

“I remember when I spoke with him, he was very eager to learn,” Tibbitts said. “He was excited to be involved with the mock interview and very accepting of all criticism, if any, that I had.

He seemed very open to learning, what we had to say and who we were. He just seemed like a very outgoing guy, someone who could really fit at Johnson Lambert.”

“He just seemed to have a very good level-headedness about him,” said Sara Huddleston, the director of human resources at Johnson Lambert who conducted Culbreath’s second interview. “He seemed to be the type of person who could hold a conversation with varying personalities, and that’s very important in our business. He had a lot of good questions and was very interested in our business.”

Culbreath is currently working an internship with the Maymont Foundation in Richmond, helping with their year-end reviews and working with fixed assets. He says that experience will serve him well at Johnson Lambert, which does extensive work with nonprofits.

“I thought it would be valuable to see the inside of a nonprofit association,” he said.

>>

NEW SCHOLARSHIP FOR THE NEW SCHOOL YEAR

Culbreath will work at Johnson Lambert’s Falls Church office, not far from his Woodbridge home. He is currently studying for the CPA Exam and plans on taking — and passing — at least two parts by the time he starts his job.

The Educational Foundation is set to add another scholarship to its slate. Richmond firm Kuehl Shepherd Kozlowski & Associates has finalized its $50,000 contribution that it began five years ago, and the $1,500 Kuehl Shepherd Kozlowski & Associates Scholarship will be awarded for the first time for the 2012–2013 academic year. For more information on the Educational Foundation’s scholarship offerings, visit the “Scholarships and Grants” section of www.VSCPAFoundation.com.

Culbreath developed some of his interview chops at The Leaders’ Institute and got the chance to show them off to the company that helped him improve. His interview with Tibbitts went so well that he didn’t even notice that he took her tips to heart.

DISCLOSURES

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SEPTEMBER/OCTOBER 2011

“A lot of the tips she gave me had to do with pre-interview preparation,” he said. “I definitely used a lot of the advice she gave me. The funny thing was that I was a lot more comfortable, so I didn’t even realize what I was using.” n

Your generosity continues to make a difference The VSCPA Educational Foundation supports students and educators in Virginia through scholarships and grants. The Foundation strives to improve awareness and perceptions by educating students, educators and the public about the exciting, challenging opportunities available to CPAs. “It is truly an honor to receive the [F. Wilson Brown Scholarship]. This scholarship will help alleviate financial pressures on my family next

“I’ve received reports from [my students] on just how valuable [the Leaders’ Institute] was.

Their enthusiasm for the accounting profes-

year and allow me to continue my pursuit of an accounting degree.”

sion has multiplied!”

—

Katherine Covino 2011 F. Wilson Brown Scholarship recipient

V S C PA

Educational Foundation

— Daniel Hubbard Associate Professor, Accounting & Management Information Systems, University of Mary Washington

Donate online at www.vscpafoundation.com, enclose your donation in the envelope provided or call (800) 733-8272.

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SALE/MERGER OPPORTUNITY Well established and diversified small Northern VA CPA firm seeks sale/merger opportunities. Practice clientele includes reviews, compilations, write-up services and three nonprofit audits. The firm has a significant individual income tax practice as well as a variety of business tax returns.

The firm enjoys a long-standing on-site and unqualified or pass peer review history. The firm is that of a sole practitioner seeking retirement or semi-retirement over the next two years. Growth and referral opportunities are excellent. Reply in confidence to VSCPA CC #74, 4309 Cox Road, Glen Allen, VA 23060 or vscpa@vscpa.com.

Springfield, Virginia Retiring CPA seeks to associate with CPA that has office space to sublease for two or three years. The best candidate would be an individual that is looking to add $125,000 to $150,000 to their Tax Practice upon my retirement. Respond by letter to Joseph Brunelle, CPA, at 9063 Giltinan Court Springfield, Virginia 22153 or E-Mail to jbrunelle@verizon.net.

CPA firm in Old Town Alexandria seeks growth through acquisition, merger or assisting someone in retirement or semiretirement. Reply in confidence to VSCPA CC #83, 4309 Cox Road, Glen Allen, VA 23060 or vscpa@vscpa.com.

Northern Virginia CPA with small practice who teaches advanced tax classes in the fall and early winter desires to lease an office from established CPA firm. Possible future association. Respond to PO Box 2851, Fairfax VA 22031.

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DISCLOSURES

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SEPTEMBER/OCTOBER 2011

DISCLOSURES

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JULY/AUGUST 2011

43

I AM the vscpa

<< BOB COCHRAN, CPA

Cochran is passionate about letting his accounting students at Longwood University know the great opportunities available to them as CPAs.

HIGH-FLYING CPA >>

Two minutes with Bob Cochran, CPA He may enjoy the occasional sky dive, but Bob Cochran, CPA, an accounting educator at Longwood University in Farmville, has his feet firmly on the ground when it comes to his passion for teaching tomorrow’s CPAs. He is also a member of the VSCPA Professional Ethics Committee.

I AM PASSIONATE ABOUT…

Enthusiastically encouraging young people to consider accounting as a career.

I try to dispel the “green eyeshade” stereotype of accountants and identify the wide variety of opportunities available to graduates with an accounting major.

PEOPLE DON’T KNOW THIS, BUT… I

maintain an active skydiving license.

IF I WEREN’T A CPA, I WOULD BE… A

physicist, and most likely an astronomer.

44

DISCLOSURES

•

I WISH CPAS KNEW… (Especially

WHEN I TOOK THE CPA EXAM… It was

younger CPAs) the importance of good communication skills. Young accountants need to understand how important clear and concise working paper documentation is when called on to defend one’s procedures and findings years after the work was performed. New graduates seeking to fulfill the 150-hour requirement of licensure should consider creative and technical writing courses as viable alternatives.

the most daunting event of my life. I never thought I could pass it.

MY ADVICE TO ASPIRING CPAS IS…

To participate in the profession beyond simply doing the job. The accounting profession in the United States is in the midst of fundamental change. Join the societies, organizations and boards that will allow you to positively influence the course of that change.

SEPTEMBER/OCTOBER 2011

I NEVER LEAVE HOME WITHOUT…

My wallet, my phone and my Swiss Army pocket knife.

I AM A CPA BECAUSE… My father

advised me in that direction. He understood the opportunities available to individuals schooled in accounting, especially those who demonstrated their commitment to the profession by acquiring the ultimate certification, the CPA designation.

Thankfully, I listened! n

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ce Le B rati n g a Quarte r ce ntu rY of Pr ofe s s i onaL LiaB i LitY i n s u ran ce f or cPas Com pr e h e n s ive Cove rag e • pr oaCtive r i s k manag e m e nt r e s ou r Ce s • e x pe rt Clai m s han d li n g cam i co i s s P on s or e d BY:

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