The Journal Entry - January 2018

January

2018,

Vol.

I

|

Learning

Styles

A Lesson in Learning How to get the most out of your professional education by understanding your learning style.

by stanley e. jenne, ph.d., cpa, cfe

www.uacpa.org the journal entry | January 2018

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Mission,Vision,Values

ExecutiveBoard

Mission

president......................................Gavin E. Hutchinson president-elect............................................ Matt Klein vice president..................................... Monica Gardner secretary...................................................... Stan Jenne treasurer........................................... Jay Niederhauser member-at-large......................................Owen Ashton member-at-large.................................... Michael Beach immediate past president................. Hollie S. Andrus aicpa council.......................................Brandon Allfrey pronet council.......................................... Amy Anholt ceo......................................................... Susan A. Speirs

The UACPA Leadership supports and challenges members through advocacy, professional education, leadership development, networking, and community service, to help them succeed in a competitive and changing world.

Vision At the UACPA, our vision is to be a world-class professional association essential to our members.

We unite a vibrant community of CPAs to enhance the success of our members and champion the values of the profession; Integrity, Competency, and Objectivity.

Values Advocacy The UACPA represents the profession at the legislature and other regulatory bodies and promotes the value of the CPA to employers, the business community, and the public at large.

UACPAStaff CEO........................................................ Susan A. Speirs Communications/marketing and Editor of The Journal Entry............... Amy Spencer CPE Manager......................................... April Deneault Financial Director..................................... Tom Horn Membership Development........... Braden Thompson Cover photo - Kristan Jacobsen, kristanjacobsen.com

Leadership & Service The UACPA provides leadership and service within the profession, within the UACPA and within the community.

Professional Development The UACPA supports and encourages continuing education and leadership development.

The Journal Entry is published quarterly, by the UACPA 136 S. Main Street, Suite 510 Salt Lake City, UT 84101 tel: 801-466-8022 toll-free in Utah: 1-800-676-2776 email: mail@uacpa.org or log on to www.uacpa.org

Professional Community The UACPA reinforces peer accountability to encourage members to maintain integrity and high ethical standards. ​​We provide member to member networking opportunities and networking opportunities with other professions. We value belonging to a distinguished organization and believe that we serve as the primary resource and point of contact for Utah CPAs.

UACPA Statement of Policy CPAs have common problems and interests. This magazine has been created to share information relating to the practice of accounting.

The opinions, views and articles expressed in this magazine are not necessarily those of the Utah Association of Certified Public Accountants. This magazine should not be deemed an endorsement by the UACPA or its committees or editorial staff of any views, opinions or

Diverse Population Outreach

positions contained herein. Because of the complexity of tax laws and

The UACPA believes in reaching out to under-represented populations, those returning to the profession or choosing it as a second career, and other professions.

accounting transactions and the changing status of the law, as well as variations in practices and procedures among accountants, information in the magazine should not be used, acted or relied upon, as a substitute for independent accounting or legal research and advice.

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the journal entry | January 2018

in this issue | January 2018

feature story

Learn About Your Learning Style 128 New Members ...........................................................................................4 Movers & Shakers .....................................................................................5 President's Message ..................................................................................6 Message from the CEO ............................................................................ 7 The Learning Style Theory ......................................................................9 Experience CPE, Don't Just Buy the T-shirt ....................................... 13

Have a Minute?

Earn CPE with Nano-Learning 17

By the Numbers: Accounting Supply and Demand ........................... 16 Earning CPE Through Nano-learning................................................. 17 Focusing on People First .......................................................................20 Tax Reform Bill ......................................................................................22 Excel Tips for Tax Season ......................................................................23 Disengaging to Benefit Your Firm and the Client ..............................26

Try These Tax Season Tips in Excel 24

Meet the UACPA Staff............................................................................28 Meet the Executive Board .....................................................................29 Board Bullets ..........................................................................................30 Comic: Generally Excepted...................................................................30 Meet a Member: Marty Van Wagoner ................................................. 31 Photos: Inauguration & Awards, Leadership Academy.....................32 Member Benefits/100% Membership Firms .......................................37

Meet a Member: Marty Van Wagoner 31 the journal entry | January 2018

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New Members

New Members

Congratulations to the following individuals/CPAs who were approved for membership or affiliate status in the UACPA as of November 30, 2017.

Jace P. Bunting Andrew T. Higham Salt Lake City Public Library Tanner, LLC

Mary L. Hansen Haynie & Company

Becky Shiew Ernst & Young LLP

Elizabeth A. Higgs WSRP

Justin McMillan Deloitte

Unbi Oh

David A. Smith Helix Education

Jacob Easdale ZAGG Inc

Bobby G. Mack Jr. Orbital ATK - Launch Systems

Lorraine Milliron

Daniel B. Mullen Nueterra Healthcare Re

William H. Tipton Alisha Frost Ortho Development Corporation Stacie A. Johnson WSRP Taylor J. Brammer Ammon Warner Squire & Company

Anita Christensen-Uibel Misty L. Hartman Shawn D. Hansen PricewaterhouseCoopers Matthew J. Jefferies Grace Mitchell Mitchell & Associates, LLC

Lance Hackett

Garrett McMullin Deloitte & Touche LLP

Nathan J. Larsen Squire & Company

Christopher Childers Deloitte & Touche, LLP

Tyler R. Christiansen Hawkins Advisors, LC

Bryan Graden Southern Utah University

Mariela Zhivkova Grant Thornton LLP

Yongsheng Wang RSM US LLP

Darin Adlard Lighthouse Resources Inc

Matthew Green

Daren K. Woolstenhulme Salt Lake Behavioral Health Tarl McCallson Grant Thornton LLP Richard J. Long Wai Chan

Joanna Tarantola Grant Thornton LLP

Simon J. Brewer Norbest LLC

Miglena Aaron AdvancedMD

Jason Parker Larson & Company PC

Feiya Chen Stayner Bates P.C.

Inna Brat Grant Thornton LLP

Jacob R. Decker Ernst & Young LLP

Allison Tovey WSRP

Andrew B. Klemme Grant Thornton LLP

Jasmine H. Ridley Grant Thornton LLP

James N. Strong

Richard J. Lamoreaux

Cindy Brewer Weber State University

Tyson Davenport Keddington & Christensen

Alisa Webb Haynie & Company

Derek Weil

Lyndsey Finkbiner Grant Thornton LLP

Brent Roper Alan Robinson

Thomas E. Andrews Schofield-Andrews Farms

Benjamin P. Bailey Keddington & Christensen

Taft Fuller Tanner LLC

Chelsea F. Anderson Jones Simkins LLC

Brian E. Jepperson Entrata, Inc 4

Kyle G. Condie WSRP, LLC

the journal entry | January 2018

Jill Kirsling Economic Development Corporation of Utah

Nathan Taylor

Michelle J. Caldwell-Pierce Davis School District

David Sutherland Axis Steel Detailing, Inc

Austin H. Ballard Kern River Gas Transmission Co.

Sue A. Sullivan

Joshua J. Gifford Tanner, LLC Ryan A. Stark CPS Mark Howell

New Student Members Movers& Shakers Brigham Young University Elizabeth Tolson Casey Stewart Kurtis Murray Adam Hewlett Marina Janho Brandon Coffman Ethan Hall-Brown Josh Wolfley Kaleb Nordwald Spencer Berrett Shawn Winston Joni Sawada Autumn Zobrist Jacob Martin Seth Nickolaisen Kyle Nordhagen Veronica Jacobs Gana Gankhuyag Haylee Jameson Hayden Gunnell Shelby Gardner Travis Steadman Southern Utah University Kelbey Fisher Duane Bennett Stevens Henager College - Ogden Tiffany Wallace University of Utah Joseph Short Jennie Lindstrom Christopher Castillo Thomas Jacobsen Susannah Randall

Utah Valley University Kaiden Whiteman Dan Watson Ryan Liston Hayden Anderson Johnathon Waters Kim Martinez Camille Klemetson LuSz Davies Zach Newman Riley Storrs Daniel Avery

Weber State University Yeejin Lim Cindy Ortiz-Quintana Western Governors University Wesley Felix Felicia Pierre Judy Dunlap Dwayne Pellerin Sarah Dahlin LaCresha Vaulx Michelle Blakemore Anna Burnside Courtney Birdwell Brittany Yeates Riki Otaki Apollonia Johnson Veronica Arellano

Dan Griffiths, CPA has been promoted to Partner of Strategy and Leadership at Tanner LLC. Griffiths has 12 years of experience serving private companies, municipalities and family-owned businesses in leadership development, Dan Griffiths business strategy and succession planning. He facilitates more than 75 board and executive team off-site retreats aroun d the country each year, including the UACPA's annual Leadership Academy. Griffiths has been with Tanner LLC almost five years. Griffiths earned his bachelor's and master's degrees from Brigham Young University.

Tanner LLC has formed a strategic partnership with Bookly, a leading online bookkeeping solution and they will now provide accounting services for small businesses. Through the partnership, they will provide a suite of consulting and bookkeeping services and regular consultations with Tanner's accounting professionals.

The Internal Revenue Service has relocated its Taxpayer Assistance Center, formerly located at 50 S. 200 East, to 5 S. Rio Grande St. at The Gateway.

Taxpayers seeking assistance will need to call 1-844545-5640 to make an appointment before visiting the IRS offices.

Share your news in Movers & Shakers. Send your news to Amy Spencer, as@uacpa.org

Westminster College Dylan Tuor Jacob Taylor

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President's Message

gavin hutchinson, cpa

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n his book, The Art of Learning: A Journey in the Pursuit of Excellence, Josh Waitzkin states, “The key to pursuing excellence is to embrace an organic, long-term learning process, and not to live in a shell of static, safe mediocrity.

Usually, growth comes at the expense of previous comfort or safety.”

A good friend of mine shared the thought that throughout life we continue learning and the further we progress with our learning the more expensive the tuition becomes. This is very apparent when comparing an undergraduate program to a graduate school program, but may be less obvious when we consider the learning that we are engaged in during life, or what is commonly known as "the school of hard knocks." The tuition at the school of hard knocks often becomes more expensive as we get older and more experienced. We pay this tuition after we have made a bad investment decision and are required to repay the investment money that was “borrowed” from your retirement account. I have been thinking about the “tuition” that I have paid for my “education” and it got me to wondering what is the best way for me to learn.

As CPAs we are required to continually learn and have many different learning opportunities available to us. CPE can be earned by attending a conference, listening to a webinar, self-study courses, and even a formal education setting. Each one of these experiences provides a different learning style; whether that is passive learning, active learning, or a combination of both. I have discovered that if I really want to learn about something, I need to be actively engaged in learning. I need to have the learning principle taught to me and I then need to practice that principle. If I am only going to listen to a lecture, then my ability is greatly reduced.

Recently I was sharing my thoughts on the different learning styles with Amy Spencer at the UACPA. I was

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sharing how I think that the easiest method of obtaining CPE is to attend a conference, but that this style of learning is a very passive style and that I feel that this is not the best style for me. I think a self-study program or a more formal program is the best way for me to learn. If I were to attempt to participate in a webinar, I may end up not paying as much attention as I should to the computer.

Amy and I decided that it would be interesting to dedicate an issue of The Journal Entry to learning, with the hopes that we can all learn a little bit more of how each one of us learns and therefore maximize our learning potential. ■

CEO's Message

Susan Speirs, CPA

W

elcome, 2018! Wasn’t it just yesterday that we were talking about 2016 coming to an end and 2017 beginning? 2017 has flown by and in our wake, 2018 awaits many new experiences and adventures. As with 2017, change will lead the way for 2018. As this edition of The Journal Entry is about learning, let’s take some time and update you on the new rules adopted by DOPL on November 7, 2017 that affects all of us as CPAs. On November 7, 2017, all Utah licensed CPAs received a letter from the Division of Occupational and Professional Licensing (DOPL) indicating that changes have been made to R156-26a — Certified Public Accounting Licensing Act Rule. The new rules are a result of collaboration with our members, executive board and Chris Rogers, bureau manager working together to streamline our licensing and reporting procedures. Below is a brief summary of changes you need to be aware of as we begin another year: • CPAs who have a current license that indicates an expiration of September 30, 2018 will be extended to December 31, 2018. Moving forward, new licenses will expire on December 31 of even years.

Due to the changes, there is a small number of newly-licensed CPAs who will see their license expire on December 31, 2020. This is due to the time period that was open for public comment when the new rules were being proposed. Under current statute, when a new license is obtained within a year of the next expiration date, the new license is bumped to the next renewal date.

• Our next CPE reporting period has been extended to December 31, 2018. This is so that licensure renewal and reporting will occur at the same time. For the period ending December 31, 2018, Utah- licensed CPAs are required to have 120 hours CPE of which one hour is Utah Laws and

Rules and three hours are ethics. Subsequent reporting periods will end on December 31 of even numbered years. There is still a 40-hour carryforward to the next reporting period.

If a licensee reinstates their license during a renewal cycle, they will be required to complete the minimum number of hours required for subsequent renewal; 120 hours for the period ending December 31, 2018 and 80 hours ending December 31 on even numbered years.

• DOPL now has a mandatory online CPE reporting system. We may login at any time to report CPE courses taken. You will not be able to renew your license until your CPE has been reported onto the online system. You may report at https://doplutah. gov/cpa/cpe.html.

• As a bonus to our newly licensed CPAs, there will be no CPE requirement for their first renewal following initial licensure.

We thank our members who participated in discussions and polling as we worked with the DOPL who gave us opportunity to provide feedback. We hope these changes will facilitate some much-needed streamlining as we work to comply with the many other complex rules and regulations we maneuver daily. ■ the journal entry | January 2018

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Learning Literacy tailor your learning to fit the most suitable method for your learning style

by stanley earl jenne,ph.d., cpa, cfe

A

re you a visual learner, an auditory learner, or a tactile learner? If you are unsure, the University of Oregon website has a survey where you can determine your learning style. Check it out at https://oregoncis. uoregon.edu/pdf/curriculum/Learning_Style_Survey_ MS.pdf. This site is set up for a teacher planning to give the learning style survey to a class. Scroll down to page four to begin the survey. To get the best results, answer each question honestly. Do not attempt to guess which learning style it may suggest. A scoring worksheet follows the survey and the results will reveal your learning style.

Learning styles is a popular theory that has the support of many educators. The premise behind the theory is that each of us has a best way to learn and that learning is more difficult with an alternative learning style. Much of the literature on learning styles is directed at the educator, suggesting that if the student's learning styles can be identified the educator can match his or her teaching style to the student’s learning style. This theory has been a factor in driving many educators away from the traditional lecture format in their classes.

Consistent with learning theory, if students understand their own learning style, they can select the best courses and tools to enhance their learning. As CPAs, we have an obligation to stay current in our areas of practice.

Continuing professional education (CPE) requirements are in place to help assure the public that we remain competent to serve their needs. If we know our learning style it will help us gain the most benefit from our CPE hours. The theory proposes three learning styles, visual, auditory, and tactile.

Visual, Auditory, and Tactile Learning Styles Visual learners make up the largest portion of the population. As the name suggests, their most effective learning comes through sight. Information is easier to remember when presented as a picture or diagram. Some visual learners create pictures or movies in their mind when reading. They tend to be more aware of things they see around them.

If you are a visual learner, reading likely is one of your strengths. Self-study based on reading a text or an article Photos by Kristan Jacobsen | KristanJacobsen.com

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Feature Story

can be effective. When listening to a lecture a visual learner should pay attention to presentation slides, illustrations, and handouts to improve learning and recall. Making a picture in your mind of what you hear also can help with remembering. Graphically organizing information and taking notes are suggested tools to improve memory.

Auditory learners are the second largest group. This group tends to retain more information when sound accompanies the message. Reading complex material can be difficult for extreme auditory learners but can become clearer when explained vocally. Auditory learners are more likely to notice sound effects in movies and changes in tone when someone is speaking.

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Because auditory learners rely on sound, they tend to learn more from lectures, whether live or recorded, than those with other learning styles. If you are an auditory learner, recording live lectures, when permitted, likely is better than taking written notes. Interactive courses where participants are involved in discussion, are great options. When attending a live conference presentation, choose a seat where you can hear the speaker clearly without distraction. When you do not understand a diagram or concept, ask questions to get an auditory response. When studying important and/or technical material on your own read it aloud. Hearing the sound will improve learning and retention.

Tactile learners make up a very small portion of the

Feature Story population. The sense of touch is more important in their learning. They learn quickly when doing a task and they remember the tasks they have performed very well. Kinesthetic learners is a term also used to describe the third learning style. Both terms suggest a physical connection to learning but kinesthetic learners tend to employ their entire body in the learning process as opposed to just their hands. Kinesthetic learners may excel in athletics, dance, and other physical areas but can appear restless and even hyperactive at times when sitting through a lecture.

Tactile learners have the biggest challenge selecting accounting CPE courses. Very few include literal handson application. Look for courses that allow you to practice skills and concepts including performing calculations, creating diagrams, and/or role-playing. When listening to a lecture or reading look for opportunities to practice or act out what you have learned either during or after the presentation.

Learning Styles Is a Theory

This article began by stating that learning styles is a popular theory. A theory is an unproven proposition.

You may remember learning from a science or research class in your past that it is impossible to prove a theory correct. It is only possible to disprove a theory. That is to say, finding 1,000 or more cases that agree with the theory does not guarantee that the next case will agree.

Alternatively, finding only one case in which the theory fails can disprove the theory. A complicating factor is that when performing research in this area it is difficult, if not impossible, to control all of the variables that could affect the outcome.

No one relies completely on one style of learning. It is difficult to learn colors without seeing them, hard to understand a melody without hearing one, and impossible to learn to catch a baseball without making an attempt. The human brain is amazing and it has been argued that we adapt our learning style to match the mode of delivery, whatever it might be. It is clear that each of us use multiple learning styles but that does not disprove the theory. We still may have a preference for, or a strength in, one learning style.

Some scholars assert that it is the subject the teacher is

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Feature Story presenting that dictates the teaching style. Certainly, as illustrated above, some subjects seem to favor, or even demand, a particular teaching style. This view does not disprove the theory but does suggest that attempts to change the teaching style to match the learning style of every student in every situation will be futile. That said, I have observed colleagues being very creative. One example is putting assignments into a game format with students and earning badges for successful completion.

Writing poetry and acting out scenarios in an accounting class are examples used that stretch the imagination.

for those who want to improve their learning, start by completing the learning style survey followed by personal introspection. you very likely will identify some traits from each of the three learning styles, but one usually dominates. compare what you find out from the survey with what you already know about yourself.

for you. As a CPA, you know that time is money so you should try to get the biggest bang for your buck from completing your CPE requirements.

Many members of our profession find themselves making presentations to clients, to colleagues, and in traditional classrooms. It will not take a very large audience to ensure that all three learning styles are represented in the group.

When you are the presenter, do your best to use different approaches within your presentation to appeal to all three learning styles. For example, talk about the issues and engage the group in discussion (auditory). Write the main points of the discussion on the board, show them on PowerPoint slides, and/or illustrate them with a diagram or model (visual). Have participants practice skills by solving problems, building models, or role playing a scenario (tactile). Do your best but don’t strain too hard to do everything. Sometimes it really is the topic that determines the best teaching method and you don’t want to embarrass yourself by appearing to be pounding square pegs into round holes in front of an audience.

In summary, learning theory is just that, a theory. It has a large number of proponents but also has its opponents.

For most of us it is not really important whether the Regardless of the results of the research, there are realities theory is right or wrong. It is only important to be as effective as we can be in our efforts to learn and to teach. that cannot be ignored. Some students do not have the The most positive outcomes of the research for CPAs are native intelligence to become successful accountants. the suggestions to improve both teaching and learning.

Other students who have the mental capacity to learn As a student and as an educator, I have employed some of accounting are not well suited for the demands of our these suggestions and they have improved my personal profession. This applies to every profession or field of learning as well as my presentations. ■ labor. Matching teaching styles to the student’s learning style cannot overcome these shortcomings. So how does one proceed in this world of uncertainty?

Stanley Earl Jenne, Ph.D., CPA, CFE is a professor in the Woodbury School of Business at Utah Valley Advice to Learners and Presenters University. In addition to teaching, For those who want to improve their learning, start by he served as Dean of the Woodbury completing the learning style survey followed by personal School of Business at UVU and a introspection. You very likely will identify some traits department chair at four universities. from each of the three learning styles but one usually One of his favorite accomplishments dominates. Compare what you find out from the survey is being an organizer and member of with what you already know about yourself. Then try the board of directors of a successful some of the tips listed above for your learning style or community bank. He may be styles and see how they work. On average, you should reached at sjenne@uvu.edu. complete about 40 hours of CPE each year. Forty hours each year gives ample time to see if learning theory works

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Experience CPE, Don't Just Buy the T-shirt by debbie davis, cpa

W

orking in public education, I have participated in many discussions where programs for pre-K (kindergarten), K-3, K-6, K-12, and even K-20 have been outlined. In a meeting a few months back, an individual introduced their concept of K-Life, indicating that learning, or education, is a life-long journey.

and future professional plans and opportunities?

Contemplating this question reminded me of a cruise I took to Alaska a few years back. The cruise line hosted a speaker who gave a presentation on Alaskan history and information about the sightseeing excursions. The speaker encouraged us to “experience Alaska” and not just “buy Continuing professional education (CPE) has an intent the T-shirt.” Are we engaged enough as we participate in similar to the K-Life concept, the intent of CPE being to CPE that we understand it and apply it when we get back ensure individuals maintain and improve knowledge, skills, to work, or do we only “have the T-shirt” (i.e., meeting and abilities to be able to provide professional services materials and the certificate to prove that we were there)? competently. The Certified Public Accountant Licensing CPE is definitely a personal investment, and to receive a Act Rule R156-26a-303b(2)(a)(ii) states: significant return on investment, it requires planning and “Selection of CPE learning activities should be a participation. thoughtful, reflective process addressing the individual Actively Plan CPE Opportunities CPA’s current and future professional plans, current knowledge and skills level, and desired or needed Early in 2015, I became the Director of the Utah State additional competence to meet future opportunities Board of Education Internal Audit Department, with and/or professional responsibilities.” responsibilities managing a budget, ensuring compliance with auditing standards that require CPE, and evaluating If we are honest with ourselves, how many of us engage in staff performance and development. With direct “a thoughtful, reflective process” when we determine the CPE we participate in? And is it really tied into our current responsibilities for use of time, funds, and performance, the journal entry | January 2018

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Experience CPE participating in CPE became a more significant consideration for me and my staff.

This year when establishing performance plans, each member of my department (myself included), prepared a potential CPE plan for the year. Though there are some common trainings we all participate in, everyone was encouraged to consider opportunities for development related to their function that they were interested in, and that would help them maintain the relevant certifications that they have achieved. In accordance with policy and to support professional development, our department budget has earmarked funds for each employee to participate in CPE during the year and the plans are used as we consider the sufficiency of resources.

Planning CPE we may participate in helps us personalize it so we can be proactive in addressing our “current and future professional plans, current knowledge and skills level, and desired or needed additional competence to meet future opportunities and/or professional responsibilities.�

Variety When planning CPE, we recognize that it comes in many forms and formats. In developing my CPE plan for the year, I considered in-office or employer-driven trainings, in-state trainings, webinars, and out-of-state trainings.

I considered large conferences, small group trainings, and hands-on opportunities. I also considered trainings on applications and software, accounting and auditing standards and trends, and the education industry. CPE is an investment, so it makes sense to pursue it in a way that will maximize your return — recognizing that sometimes we need to be in learning environments that push us out of our comfort zones.

Cost

making a plan is only part of investing in cpe; actively participating is also necessary to achieve a return on our educational investment. to encourage my department to be active participants of cpe opportunities, our performance plans include a provision to report back during staff meetings about what was learned and how we can apply what was learned to our work. policy options for CPE may include rotating or restricting which employees attend more expensive trainings, attending more expensive trainings every other year, or onsite training options.

Actively Participate in CPE Opportunities Making a plan is only part of investing in CPE; actively participating is also necessary to achieve a return on our educational investment. To encourage my department to be active participants of CPE opportunities, our performance plans include a provision to report back during staff meetings about what was learned and how we can apply what was learned to our work. Incentive awards or other rewards could be considered for employees who attend trainings and apply what is learned if it significantly benefits your department or organization.

One of the areas I mapped out to study this year was Excel. Though Excel is an application I use every day, it had been quite some time since I invested time in learning and utilizing the new functionality that has been built into subsequent versions of the software. I researched providers and selected a continuing education class at a technical college; while I refreshed existing knowledge, I also learned several new things. I was also able to provide input regarding data functions, which others in the class found to be useful.

Similar to the variety of CPE offered, there are many tiers of CPE costs. On the less expensive end of the spectrum are in-office trainings, luncheon trainings, or webinars, some of which may be free with memberships in professional organizations. In-state trainings are generally more moderately priced, with out-of-state or national Actively Participate in CPE conferences generally being the most expensive. While national conferences may be the most costly, they may also Development pull top trainers and industry experts who make the benefit Developing and hosting CPE conferences and trainings of attending worth the investment. Depending on cost, 14

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EXperience CPE is a great opportunity to invest in CPE, though it does require additional commitment. Several years ago, I joined the UACPA committee that plans the annual State and Local Government Conference. Participation with the committee helped me to move beyond just giving feedback in an evaluation to actively suggesting speakers and topics that are relevant to my current function, interests, and license. Participation with the committee has also provided leadership opportunities and a network of individuals with incredible expertise within our profession who I can contact as questions arise.

I also participate in trainings and meetings with a network of Internal Audit Directors of other state agencies. We discuss best practice, share ideas, and consider compliance with standards and regulations, including peer review or external validation requirements.

Call to CPE Action I love to read, but recently I’ve discovered the freedom of putting a book down, if it hasn’t captured my interest after reading a few chapters; the freedom comes in gifting myself time to pursue other things I am more interested in. Though CPE is a requirement, it is also an opportunity, and each of us has discretion to choose the CPE we participate in.

Take a few minutes to ask yourself if you enjoy the CPE you participate in. Is it maintaining and improving your current knowledge, skills, and abilities? Is it a springboard for competencies that will lead to future opportunities? Take a chance, ask some questions, and make a CPE plan that is an investment in you. Enjoy the freedom and excitement that comes from actively planning, participating in, and helping to develop CPE opportunities. Experience CPE, don’t just buy the T-shirt. ■ Debbie Davis, CPA, is the Internal Audit Director for the Utah State Board of Education. She previously worked for the Office of the State Auditor as an Audit Supervisor.

Debbie may be reached at debbie. davis@schools.utah.gov.

VOLUNTEER Give back to your profession while advancing your career. We are looking for members to help with our committees. See the complete list of committees at uacpa.org/volunteer

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by the

Numbers

These numbers reflect the numbers from the AICPA's 2017 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits report.

CPA Supply and Demand

13 27,889

Percentage of increase in CPA Exam candidates between 2015 and 2016

Number of CPA Candidates who passed their 4th section of the Exam in 2016

88 46

Percentage of U.S. firms who expect to have the same number or more CPAs on staff in 2017

63

Percentage of CPAs Percentage of who are female at accounting U.S. firms in 2016 master's degree graduates in 2015 - 16 who are caucasian 16

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52 Percentage of accounting graduates hired in 2016 in accounting and auditing

Crunching Your Training Into Nanos nano-learning is a growing trend in cpe

by matthew klein, cpa, cgma

N

ano-learning is the profession’s newest attempt at keeping up with the times, but it appears many are still resistant to change in the learning arena. I first learned of the concept of nano learning while attending AICPA Council meetings this past October. It was briefly explained to me as getting credit for reading an article or reviewing some work skill for 10 minutes, which seems a little too easy. We will look at the actual definition, how to administer or manage it, and the pros and cons of implementing this new method of learning.

Learning (CPE) is defined and governed by the National Association of State Boards of Accountancy (NASBA) and then administered on the state level by the State Board of Accountancy (SBOA). The new NASBA learning standard defines nano-learning as a tutorial program designed to permit a participant to learn a given subject in a tenminute time frame through the use of electronic media and without interaction with a real time instructor. A nano-learning program differs from a self-study program in that it is typically focused on a single learning objective and is not paper-based. A nano-learning program is not a group program. Nano-learning is not a substitute for comprehensive programs addressing complex issues.

The most enticing aspect of nano-learning is getting CPE credit for doing your job. The current self-study program

standard must be at least .5 hours, or 25 minutes, of learning time. The nano-learning course is only 10 minutes long providing .2 hours of credit and cannot be any longer. A 20 minute nano course would be considered as two separate 10 minute courses and would need to be reported as such.

Nano learning is designed to be one course at a time.

Interestingly, the new standard also allows for credit on any other methods to be awarded in .2 hour increments after the required base level of credit has been reached.

NANO LEARNING

PROS

CONS

Get credit for something you’re already doing

Reporting burden — Up to 400 “courses” for 80 hours

Educate and maintain the professional competence of a CPA

Not comprehensive, barely skims the surface of a topic

No instructor, not paper-based, single topic

Can’t be expanded beyond 10 minutes — self-study course is next lowest at 25 minutes

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Nano-Learning

BLENDED LEARNING Another learning method approved in the new standards is blended learning.

This has been present in the K-12 and collegiate education arenas for a few years but is new to professional development courses. The concept allows for the combination of several methods of learning together to provide CPE credit where the individual components do not comply with the requirements of their respective components. The Standards define a blended learning program as “an educational program incorporating multiple learning formats.” The new blended learning instructional delivery method allows for the packaged course to be awarded on a single certificate of completion under one delivery method, blended learning. Blended learning programs must use instructional methods that clearly define learning objectives and guide the participant through a program of learning. Preprogram, post-program, and homework assignments should enhance the learning program experience and must relate to the defined learning objectives of the program. The burden of proof to be a qualified learning program is on the program sponsor. Minimum of one full credit hour at first but can go in .2 hour increments thereafter.

The biggest misconception is that you can make anything into a nano course such as a group class on pivot tables or a discussion about sales tax nexus. In fact, any nano course still needs to be approved. At a minimum, nanolearning programs must include the following: 1. The learning objective(s) of the program 2. Any instructions that participants need to navigate through the program and 3. A qualified assessment of at least two questions achieving 100% and they may not be true/false.

NASBA Standard No. 10 states that nano-learning programs must use instructional methods that clearly define a minimum of one learning objective, guide the participant through a program of learning, and provide evidence of a participant’s satisfactory completion of the program.

Satisfactory completion of the program must be confirmed at the conclusion of the program through a qualified assessment. However, this assessment is included in the 10 minute time frame. Interestingly, the nano-learning evaluation does not need to assess instructor effectiveness.

Nano-learning programs may incorporate techniques such as visuals, slide reinforcements, role play, demonstrations, or use of a white board. The intent of a nano learning program is to transfer knowledge that is interactive — seeking to teach by example — to supply information to understand a specific concept, complete a certain task or computation or to problem-solve or make decisions through role play or demonstration. The burden of proof for a course to be qualified is on the sponsors of the programs which helps to debunk the myth of getting credit for reading an article. In fact, Standard 10 of the revised Statement of Standards on CPE Programs explicitly states, “Nano-learning programs requiring only the reading of general professional literature, IRS publications, or reference manuals followed by an assessment will not be acceptable.”

NASBA has provided the standard for implementing nano-learning programs but the actual adoption and implementation of the standard is up to indivudal SBOAs. Currently, 15 states have adopted a standard to allow for nano-learning. We tend to see many of the same states as early adopters among new ideas in the profession and nanolearning is no different. Utah is not typically an early adopter.

So the question is — if Utah adopts it, how can I do it for myself? Can I make up nano-learning courses without having to get them all approved through the UACPA

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office? What does Utah’s CPE statute say about online and in-person learning and hours split? Since the state hasn’t adopted anything yet, nothing has changed. Our state statutes don’t have a requirement for a certain number of hours by method. Finally, if Utah does adopt nano-learning, it will still have to be approved and administered, but there is nothing stopping any of us from making up our own CPE courses and submitting them to April for approval now or in the future!

Is nano-learning the way of the future? According to NASBA and the AICPA it’s a component of learning in the future but is not a substitute for a comprehensive learning program on complex topics. What it does provide is options, and as we all know, everyone has their preferred method of learning. Do we really need credit for every little minute of learning? As CPAs, most of us have worked under a billable hour program and know too well the tedious tracking of increments of hours on multiple jobs. Nano-learning sounds like it could get the same tedium. As professionals looking to improve ourselves, our company, and our profession we should be striving to learn for the sake of learning not just to check a box or reach the 80 hour minimum. As noted

Nano-Learning above, everything doesn’t count as CPE — it must still be sponsored, approved, and provide an evaluation all within 10 minutes. How valuable or broad can that topic be?

When was the last time a 15 minute meeting actually lasted for only 15 minutes and accomplished all, or any, of the objectives to begin with? Even 30 or 60 minute meetings have trouble achieving those expectations. Several states that have adopted nano-learning still don’t see members taking advantage of it. At only one year old, the concept may need more time or a younger generation to fully develop. ■ Matthew W. Klein, CPA, CGMA , is the Finance Director at Lifetime Products. He graduated from the University of Utah with a Bachelors and Masters in Accounting and began his career at Deloitte & Touche. Klein has been active in the UACPA and has served as the ProNet Council Chair and on the BAM Council. He is the president-Elect for the UACPA.

Call today for a free and confidential valuation of your practice.

Imagine... a chair without a desk Delivering Results - One Practice At a time The Holmes Group Ryan M. Pannell

800 397 0249 www.APS.net Ryan@APS.net the journal entry | January 2018

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Learning Numbers vs.

People connect to clients and strengthen relationships by focusing on people by owen ashton, cpa

A

few weeks ago, I chatted with a recent mechanical engineering graduate. I complimented him on passing all those nasty advanced math classes. He replied, “But don’t CPAs use complex math, too?” I responded, “Not really — not like engineers. Calculating the present and future value of money is about as high of math as we generally need. In working with numbers, we are typically more about understanding and applying accounting principles and tax regulations in complex business situations. We paint pictures of the financial health of entities that stakeholders can really see.”

hit me so hard that I immediately marched out of our downtown Salt Lake offices and walked swiftly to the Barnes and Noble store at the Gateway mall. I found the book, People Skills: How to Assert Yourself, Listen to Others, and Resolve Conflicts by Robert Bolton.

I didn’t understand this in my pre-college years. I didn’t comprehend what accounting was really all about. Now, at the sunset of my career, I recognize the even bigger thing I missed: Understanding and interacting well with other people is as important as the numbers.

Dr. Bolton states that, “Eighty percent of the people who fail at work do so for one reason: they do not relate well to other people.” In our profession, I’ve come to believe it’s more like 90 percent!

This painfully hit home during a couple different episodes in my career. My respective bosses emphatically told me that I was a poor verbal communicator, and I better do something about it. One told me to “Find a book about people skills, read it, and apply it! Soon!” This latter chat

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This book changed my life! I often contemplated my good fortune in happening onto it. During my bus commutes I consumed it. There were many “aha” moments — and even a few tears, which my wife and kids would tell you is about as emotional as I ever get.

Two thoughts from this book especially impacted me.

First: In order to really connect with others, one must first really connect with oneself — especially with one’s own feelings. Dr. Bolton states, “To the extent that emotions are stifled, people lead dwarfed and stunted lives. Our

Learning Numbers vs. People emotions help shape our values. They are a fundamental part of our motivation and help to determine our direction and purpose in life. Emotions provide us with needed clues for solving our problems; they are central to our relatedness to others.” Further, “Ours is a culture that teaches people to repress their feelings.” (Yes, I learned that culture early! It’s taken years to try to unlearn.)

“In our culture, people commonly have two types of problems with their feelings. On the one hand, they are often unaware of their own emotions. On the other hand, feelings sometimes surge through a person with such force that reason and other factors become impotent.

The person finds himself dangerously out of control and is unable to direct his own destiny at that time. The first condition comes when we are blind to our emotions. The second condition is caused when we are blinded by our emotions.” And one more: “Though…it is not easy to know oneself, it is clearly possible to grow in that ability.”

(Thank goodness!)

And second: One must strive to be ever-authentic to communicate well. Dr. Bolton states, “A genuine person can spontaneously be himself with another, so they know him as he truly is … By contrast, the inauthentic person conceals his real thoughts, feeling, values, and motives …

Genuineness is essential to all vital relationships.”

These short excerpts don’t do justice to Dr. Bolton’s teachings. Read the book — especially if you’ve had boss chats like mine!

The importance of communicating while feeling emotions was brought to my mind by a newspaper article with the headline, “Robots could replace nearly a third of the U.S. workforce by 2030.” Just the title is sobering, right? It said, “Caretakers, psychologists, artists, writers — anyone who relies on empathy or creativity at work — can expect to have the most job security as automation continues to spread, said Jason Hong, a computer science professor at Carnegie Mellon University in Pittsburgh.” (November 30, 2017, Washington Post, Danielle Paquette) Well, does this sink our CPA profession? Aren’t we about dispassionate analyzing, evidentiary matter, independence? And creativity?

I think our profession will survive because so much of our

work is based on effective communications with others — that requires empathy, feelings, and creativity. We are constantly communicating with clients, bosses, peers, subordinates, and others about something that means a lot to just about everyone: money. We often must deliver bad news in a sensitive, empathetic way.

Now one final note: After we become well connected with ourselves, we must focus on those with whom we interact.

We must really listen. And it’s important to understand what makes others tick so we can better relate to them.

One of my former employers assembled the senior executive team and administered the Myers Briggs personality type test. Managers exchanged their results to better understand one another. I think this helped. Are you an extrovert or introvert, a sensor or an intuitor, a thinker or a feeler, and finally, a judger or a perceiver?

For the last several months, I’ve participated in a weekly sales training course. My classmates and I have learned about the DISC personal behavior tool developed by psychologist William Foulton Marston. This more simple approach is based on an x- and y-axis model. The x-axis is a continuum of task vs. people focus. The y-axis, a continuum of passive vs. active. The result? An individual tends to fall into one of the four quadrants that are called dominance, influence, steadiness, and conscientiousness.

Being aware of the quadrant tendencies of oneself and the individuals with whom we interact facilitates communications. We can thoughtfully adjust our talking style to better connect.

And so, even if we CPAs focus on numbers, we are equally all about understanding and interacting well with people. ■ Owen Ashton, CPA, is an author, inspirational speaker, and mental health advocate. He's on the executive board of the UACPA. He co-chairs the Utah Behavioral Health Planning and Advisory Council and is on the board of directors of the National Alliance on Mental Illness Utah. Reach him at oa@owenashton.com

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Next Stop for Tax Reform: The Oval Office provided by the aicpa

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ecently, both houses of Congress passed a tax reform bill titled “To provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018,” also known as the Tax Cuts and Jobs Act. The legislation is now bound for the president’s desk. After a Senate and House conference committee reviewed the preexisting bills from both houses, a number of changes and consolidations were made to create the final bill.

firms — should have received the new deduction.”

The CPA profession’s advocacy led to the inclusion of several beneficial provisions in the final tax package. Specifically, Congress expanded the number of taxpayers who may use the cash method of accounting without further restricting its use. Lawmakers also decided to adopt many AICPA supported provisions:

It is expected that President Trump will shortly sign the Tax Cuts and Jobs Act into law, giving the country the first fundamental tax reform since 1986. Once signed, it’s likely some time will be needed to work through implementation, including the production of new IRS forms and guidance to accommodate the many changes involved.

• Retained the business interest expense deduction for small businesses (under $25 million)

Among the provisions of the final bill, which the Joint Committee on Taxation estimates will cost $1.4-trillion over 10 years, are: lowering of the corporate tax rate to 21 percent, seven individual tax brackets (10%, 12%, 22%, 24%, 32%, 35% and 37%) and an increase in the standard deduction to $12,000 for single filers and $24,000 for married couples, and repeal of personal exemptions and miscellaneous itemized deductions.

• Simplified the inventory rules for small businesses

Most of the legislation’s tax cuts for individuals would become effective in January 2018 and expire in 2025 (and revert to the rules prior to this legislation) to comply with Senate budget rules. However, the reduction in the corporate rate would become effective in January 2018 and be permanent.

• Allowed nonresident aliens as qualifying beneficiaries of an electing small business trust

In a statement issued after passage of the tax package, AICPA President and CEO Barry C. Melancon, CPA, CGMA, said the legislation contains several provisions that should be welcomed by CPAs and their clients. He expressed disappointment, however, over lawmakers’ decision to exclude CPAs from the measure’s treatment of pass-through entities. “Congress should have provided parity for passthroughs, regardless of their line of business, in order to achieve a fairer, simpler, and more competitive tax code,” he said. “The AICPA pointedly and repeatedly made the case that all professional service firms — including accounting 22

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• Preserved the current tax treatment of nonqualified deferred compensation • Simplified the kiddie tax

• Expanded the exception for small businesses from the uniform capitalization rules • Removed computer or peripheral equipment from the definition of listed property • Provided consideration of an inflation index

• Repealed the PEASE phase-out of itemized deductions • Repealed the technical terminations rule for partnerships • Repealed the corporate Alternative Minimum Tax “In anticipation of implementation of these and other changes to the tax code, the AICPA is prepared to guide our members through the legislation’s intricacies and impact,” Melancon said in the statement. “The nation’s CPAs can count on us during this time of transition — and beyond.”

To learn more about the CPA profession’s views on tax reform, visit www.aicpa.org/taxreform. ■

Time Savers for Tax Season maXimiZe your hours with these two eXcel tips by val steed, cpa, ma, citp

W

hen are CPAs going to give up their spreadsheets and use professionally designed software like Great Plains?” Doug Burgum, Governor of North Dakota and former President/CEO of Great Plains Software caught me off guard with this question over dinner a number of years ago.

“CPAs will give up spreadsheets when they die,” I responded.

A statement that I believe is just as accurate today as it was back then.

that’s simply there, ready to help you clean up data and it's in all versions of Excel 2013 and Excel 2016.

Let's assume that you wanted a list with each element in a column — first name, last name, and a phone number. But instead, what you got is a last name and a first name jammed into the same column while only the numbers of a phone number appear down the next column. This can be very visually challenging to use for calls.

Electronic spreadsheets are our answer to all the calculations that are not already in GL/AP/AR, etc. Spreadsheets facilitate data cleanup, organize and sort, as well as calculate and sum. Our needs for these functions have not changed and so our need for Excel’s time-saving and improved calculation capabilities remains.

In light of this, there are two features in Excel that can significantly help you this tax season. One old and one new, but both are very powerful and most accountants do not know about either.

• Move your cursor over to C2 and type in the name how you want it to appear.

• Press Enter.

Tip #1 — Flash Fill (Excel 2013, Excel 2016)

• Go to the Data ribbon element and select Flash Fill.

New in Excel 2013, Flash Fill is one of the greatest gifts accountants have ever received. Flash Fill is not an add-in.

It's not something you need to turn on. Flash Fill is a feature

Now, you will see that it populates the column with the exact information you want. While you can do some complex text functions to parse the information, you don’t need to do that anymore. the journal entry | January 2018

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Excel Tips for Tax Season • Make sure you have clean columns to the right of the columns you’re parsing.

• In the clean column, type the data you want from the left columns into the first cell.

As you start to type the same solution in the second cell down the column, Excel will pop up an Auto Fill box showing the rest of the solutions for your data.

• Hit Enter and it will populate your data down the range.

If the Auto Fill box does not appear type in the first solution, hit CTRL-E for Flash Fill or click to the Data Tab and Select Flash Fill. Remember, this only works on clean columns to the right of the data you are parsing.

You can choose what you would like to have as a result.

The results are NOT formulas but different arrangements of text. I’ve cut right to the desired list by typing first name, last name, and the phone number the way I want it to appear in D3 and then clicking Flash Fill again. Flash Fill will occasionally bring up the Auto-Complete box if you go down to the second cell in the range and start typing, but I prefer using the command in the Ribbon or the hot-key CTRL-E.

With Flash Fill, you can parse, combine, or add text to your solution. Notice that I added the spaces, parenthesis, and dash.

To see this work at a secondary level, let’s look at a QuickBooks Trial Balance report sent to Excel. Note that the account number, sub account number, and description are all in the same column.

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You’ll notice that we’re headed for a problem. QuickBooks puts the account and sub-account descriptions and account numbers in column A. So, we need to do one more step compared to the first example above.

• Flash Fill the account number like you did above and you should end up with the cursor stopping on the first cell with a sub-account.

This is called an ambiguous cell. Excel does not have enough information to solve this secondary level of parse, yet.

• Type in the proper sub-account number and note that Excel will apply the secondary rule you just taught it to the rest of the data.

• Once you have the correct account number, simply Flash Fill the description column and Excel will pick off the appropriate description to match the sub-account as well.

EXcel Tips for TaX Season While this tool will not solve everything, it will take care of a very large percentage of accounting data cleanup issues.

QuickBooks is notorious for sending over odd formats for reports, so keep an eye out for text formats on cells. You want either numeric formats for numbers or general for text. I recommend avoiding the actual text format because it tends to cause formatting issues with QuickBooks data.

If you do this right, it shouldn’t take you long to split the data into the proper account and description, which then allows you to match that up to the amounts.

Tip #2 — Display of Zeros and Precision as Displayed One of the confounding problems of using any of the financial number formats (Accounting, Currency, and Number) is the display of zeros, which is the third part of any number format code. However, the format code only applies when the value in a cell is equal to zero, not when the value in a cell appears to be zero — such as when a small value rounds off to zero automatically for display. This is especially problematic when using the accounting format because cells can be displayed as zeros, positive zeros, or negative zeros as shown below.

values are rounded to their cell formats. In other words, the values 0.001 or -0.001 (or smaller) — displayed with two decimals — would automatically be rounded to a cell value of zero.

Enable Global Rounding in a workbook by clicking: • “File” • “Options” • “Advanced” • “Set Precision as Displayed” (near the bottom under the section “When calculating this workbook”) • “OK” Selecting Precision as Displayed will cause Excel to display the warning shown below.

This does NOT affect any formula. This message is for raw data and only if you have selected fewer decimal places than your raw data. In that case it will round and truncate the raw data. Give this a try and I think you’ll find this old trick to be a go-to tactic this tax season.

As far as Doug’s question is concerned, we’re not dead yet, so our spreadsheets will live on. Happy computing and all the best this tax season. ■

Some practitioners have become so frustrated with this problem that they enter hard-coded zeros over formulas when this occurs so that zeros display consistently throughout their reports. This process of overwriting formulas can potentially corrupt your worksheet so that it does not recalculate properly in the future.

The best solution for all rounding issues is to use Precision as Displayed.

Precision as Displayed enables global rounding in the affected workbook. When global rounding is enabled, all

Val Steed, CPA, CPA, MA, CITP is the chair of the AICPA's Technology Conference, four-year member of the AICPA's Information Technology Executive Committee and three-year recipient of the AICPA's Outstanding Discussion Leader Award. He graduated with a bachelors and masters from Utah State University.

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Disengaging to Benefit Your Firm and the Client by suZanne m. holl, cpa

M

ost CPAs — even those highly skilled at screening and bringing in new clients — will periodically encounter situations and client relationships that call for disengaging. While the subject of disengaging is typically thought of as (at best) unpleasant, disengaging can be a practice management tool that increases firm profitability and creates a better situation for both the CPA and the client.

Generally, today’s clients are making more demands and expecting broader services at a time when CPAs are becoming more specialized. When clients expect more from you than what your experience and staffing enable you to provide, the resulting expectation gap could lead to a deterioration of the professional relationship. But that doesn’t have to happen. By identifying clients and situations that call for disengaging, and by recognizing when to disengage, the CPA will be on the way to knowing how to disengage skillfully.

What Exactly is Disengagement The disengagement process is as important as the engagement process in that it is a critical part of a successful practice. Initiated by the CPA, disengagement seeks to formally terminate the CPA-client relationship in the most positive way possible, freeing each party to pursue other professional ties.

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A skillfully handled disengagement is mutually beneficial to you and the client. You are left with more time to grow your business by selling new services to existing clients, and to bring in new clients. The client from whom you disengage is also free to move on and find a successor CPA to meet their needs.

When to Disengage A proactive attitude that treats disengaging as a practice management tool means, in part, putting into place a system that allows you to re-evaluate your client base on a regular basis, be it annually or semi-annually. Incorporating such a plan into your business practice enables you to monitor your client base and note any changes that could have an impact on your professional relationship.

Of course, even the most proactive evaluation plans will sometimes be thwarted, creating a need to disengage immediately due to a critical situation, such as the discovery of fraudulent activity. However, by using a procedure that enables you to regularly monitor your clients, you can better protect yourself and your business from having situations escalate into crises calling for disengagement.

Another benefit that comes from regularly evaluating clients is that you place yourself in an excellent position to gauge their changing business needs and therefore sell them

Disengaging to Benefit Your Firm and the Client new or different services that complement their growth or change.

Care needs to be taken when disengaging or withdrawing from an engagement after it has started, especially when the scope of the engagement includes audit, review, or compilation. Since attestation engagements are often used by the client for obtaining financing or satisfying loan covenants, disengaging while the engagement is in process requires careful attention to potentially negative effects.

Opportunity Cost of Continuing Relationship Only you can decide whether it is in the best interest of your firm to continue a relationship with a client who makes you uncomfortable, upsets your staff, or otherwise exhibits unseemly behavior. Consider the time and energy your firm spends on serving that client. Working with certain clients may be so disruptive and upsetting that it is simply not worth the money they bring into the firm.

You should also carefully consider any changes in a client’s business. Changes in management or in the direction of the business can create problems for you if you are not professionally staffed to perform the new, additional, or different services the client’s business requires.

When you are not qualified to accommodate a client’s new needs, yet choose to accommodate the client rather than disengage, you make yourself vulnerable to litigation. Not only are you inviting a potential lawsuit, but the firm is losing the opportunity to provide additional services to the existing client base and to build a stronger base in the firm’s area of expertise – a course of action that could be far more productive and profitable for the firm. Consider different options to best serve the client, such as a friendly joint venture with another accounting firm that specializes in another area of expertise. Such arrangements can be quite successful.

CPAs often try to adjust to a client’s changing behaviors or needs, especially for clients that have long-term professional relationships with the CPA. However, making adjustments can cause you to overlook risk factors and eventually expose you to disputes and lawsuits.

Pay Attention to Difficult Clients When performing regular screening of existing clients,

pay special attention to difficult or manipulative clients.

Difficult behavior, such as consistently delinquent payment, should not be ignored and should be followed up. Take swift action on your own behalf to investigate. The following checklist of pertinent questions is intended to help you and your staff get to the heart of the matter and solve problems.

•

What is causing the problem?

•

Who is causing the problem?

•

Does the client’s behavior indicate that there is a problem with the service provided?

•

Are you dealing with a manipulative client?

•

Is the problem due to a personality conflict?

•

Could someone else better serve the client?

•

When did you first realize you had a problem with the client?

•

What tipped you off — an unpaid bill? A change in attitude?

•

Are you allowing emotional ties to overshadow professional concerns?

It is possible that the behavior you see now is a reaction to something you did months ago but is still bothering the client.

Additional Questions to Consider •

What can your firm do to better communicate with the client?

•

Does the client feel the fees charged by your firm are too high?

•

Was a new staff member assigned to the engagement?

•

Is the client suffering a business or personal hardship?

•

Is your firm’s billing method clear?

Dealing right away with difficult behavior may save the relationship and help you avoid disengagement, or it may confirm that it is time to sever the relationship. the journal entry | January 2018

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How to Disengage When you decide to disengage, you should seek to terminate the relationship professionally and formally, in writing. At a minimum, the disengagement letter should always contain the following: •

A clear statement that you are disengaging and the effective date of the disengagement (e.g., We must formally end our relationship with you as your accounting firm <effective immediately, or as of [date]>.);

•

A description of any work that is in process or unfinished; and

•

A statement of any due dates or filing deadlines that exist with regard to the work, whether finished, in process, or unfinished.

Review and edit your disengagement letter carefully to ensure that it is professional, objective, and rational.

Situations that provoke disengagements are often emotionally charged. Don’t let your letter reflect your personal feelings. Your client needn’t feel antagonized in any way. When done effectively, disengagement can leave your client feeling that you have acted in the best interests of both parties.

Disengagement is an important practice management tool, and knowing how to do it skillfully and professionally will serve to help you expand your practice and avoid liability. Any time you need advice about a client situation or a disengagement letter, call your risk advisor. ■

Suzanne M. Holl, CPA is senior vice president of loss prevention services with CAMICO (camico.com). With more than 28 years of experience in accounting, she draws on her Big Four public accounting and private industry background to provide CAMICO's policyholders with information on a wide variety of loss prevention and accounting issues.

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Meet the UACPA Staff

What Recent Purchase Under $100 Has Impacted You Most?

April Deneault CPE Manager "My most impactful purchase under $100 is my stationary bike. I’m not a huge fan of cardio and struggle to get it in, but with my stationary bike it's super easy to jump on, watch an episode of "Friends" and cycle away. Voila, I’ve done 20 minutes of cardio."

Braden Thompson Membership Development Coordinator "I’d have to say the power drill that I purchased for around $40 about two years ago. I have built multiple shelves, installed a wall-mounted headboard, drilled holes to wire recessed lighting and am currently refinishing my bathroom all with the help of that little guy."

Amy Spencer Marketing & Communications Manager "Amazon Prime ($99 per year) has us enjoying free, 2-day shipping and lower prices on house goods, hard-to-find spices, tools, gifts, and cat food. Plus, I enjoy the free books for my Kindle and take advantage of the wealth of TV shows and movies. Our stats for the year show we saved $250 on shipping and 40 trips to the store."

Tom Horn Financial Director "I bought the book First Man, The Life of Neil Armstrong. I enjoyed it immensely since I followed the space program as a kid and still have an interest today."

Meet the Executive Board

What is your learning method for CPE? Gavin Hutchinson President

Monica Teuscher Gardner Vice President

"I learn best through the adage of hear, say,

"I think all methods have their purpose and

do, and then teach. If I listen to someone explain a process, I can repeat back what I was told then work through the process, I will have a pretty good understanding. With the opportunity to teach that process, then that process becomes part of my repertoire."

perks, but my preferred method involves interaction with others and an opportunity to process the information and contribute to the discussion."

Matt Klein President-Elect

Jay C. Niederhauser Treasurer

"I prefer live learning either in a class or con-

"I prefer live classes and conferences. For

ference format. It forces me to be present rather than procrastinate like the two selfstudy courses that have been on my desk for a year. In-person makes sure it happens and thereâ&#x20AC;&#x2122;s value in meeting others face to face.

Same reasons Iâ&#x20AC;&#x2122;m not a fan of conference calls."

me, that is the most beneficial way of learning because I can interact with the instructor and other participants. I find it easier to become engaged in the learning process."

Stan Jenne Secretary

Amy Anholt ProNet Council

"My preferred method for earning CPE

"I love the opportunity to see colleagues

is self-study. I learn best when I read and have the opportunity to re-read, especially when it is technical material. Some live presentations are entertaining but my retention of the material is not great."

and meet new professionals during CPE courses. So, my preferred method is to attend in person. The next best thing are live webinars, the convenience to participate from my office or home and still receive stellar CPE. Thank you to the UACPA for providing the live webinars to its members!"

Susan Speirs CEO

Owen Ashton Member-at-Large

"I like to learn by doing. If someone shows me how to do something whether it be calculating the boot on a 1031 exchange to dipping chocolates or piecing fabric together for a quilt, Iâ&#x20AC;&#x2122;m good to go."

"Conferences work best for me. I select ones that best address areas in which I need to improve my professional competence. I learn from hearing and interacting with experts in those areas."

Not pictured: Hollie Andrus (Past President), Michael Beach (Member at Large) and Brandon Allfrey (AICPA Council Rep)

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Board Bullets

1 News from the UACPA Board •

•

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The Executive Board voted to merge the American Women’s Society of Certified Public Accountants of Utah, Inc. (AWSCPA) into the UACPA. When the AWSCPA closed on October 31, 2017, chapters across the nation were asked to either close, change their name so that they weren’t affiliated with AWSCPA branding, or to join with another group. The Utah members have merged in to the UACPA and a new Women’s Development and Advancement Council (Women’s DAC) was created to meet our female member’s needs.

Haynie & Co. presented the audit and tax return to the board for approval. No significant deficiencies or misstatements were noted.

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•

Brandon Allfrey, AICPA Council representative, reported on the October AICPA council meetings held in San Antonio, Texas. Discussion was had regarding the differences between the American Institute of Certified Public Accontants (AICPA) and the Association of International Certified Professional Accountants (AICPA), who they are, what they are doing and how we can help our members better understand the structure and responsibilities of both entities

•

The Executive Board approved names to be submitted to the AICPA (American Institute of Certified Public Accountants) for board nominees and peer review board nominees.

meet a uacpa member

Five Minutes with Marty Van Wagoner

Marty Van Wagoner, CPA is a full-time professional-in-residence faculty at Utah Valley University and a CPE instructor for the AICPA and Surgent McCoy. Van Wagoner earned his BA and MBA from the University of Utah.

He spent the first 10 years of his career at KPMG before becoming a sole proprietor. He later joined others and has been a partner in a firm since. Born in Dragerton, Utah, a defunct coal mining town near Price, Van Wagoner grew up in Magna, Utah. "Besides paper routes, my first job was working on a farm for $1.00/hour." Married 32 and-a-half years, Van Wagoner has four children, ages 21 to 29, and two daughters-in-law.

As an educator, how do you advocate for the live classroom experience over attending a webcast or webinar? At the risk of sounding hypocritical,

because I teach webcasts and webinars, I’m not a big fan. It concerns me that webcast or webinar attendees are likely doing other work while the webcast is running so I’m not sure how much they really get from it. The same could be said about those in a class who spend the day on their laptop or phone. It seems easier to “slide by” on a webcast.

Like anything else, you get what you put into it.

What have been your proudest moments as a CPA? Being hired by a Big Four firm and working with the incredibly high caliber of people with whom I’ve been blessed to associate with throughout my career is probably at the top of that list.

What do you like to do outside of work? LOTS!!! I have a lot of hobbies — probably too many! I mostly enjoy

woodworking, woodcarving, camping, reading, writing, watching movies and being involved in my church.

What are some of your goals as a professional? Some personal goals are to be a better husband and father, get a couple of books written that I’ve started, to get some wood projects done on which I’m way behind, to serve well in my church, and to become a better person in a couple specific ways. We all need polishing, I suppose; I’m afraid I just need it more than others!

Professional goals are to serve my clients well and serve my students well — to deliver the quality and service I’m being paid to deliver.

What advice do you live by? You can only be young once. But you can be immature forever! ■ the journal entry | January 2018

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Photos, Inauguration & Awards

The Annual Inauguration & Awards Banquet, sponsored by Squire, Deloitte and Stayner Bates, was held Wednesday, Sept. 27 at Noah's. Chad Lewis delivered the keynote address to award winners, 100% member firms, newly licened CPAs and guests. The 2017 award recipients honored are Distinguished Service K. Tim Larsen, CPA Outstanding CPA in Business & Management Mark W. Palmer, CPA Outstanding CPA in Public Practice Sandy Banks, CPA Outstanding Leadership Council Member Benjamin Young, CPA Outstanding Educator Marci L. Butterfield, CPA Rising Star David Peaden, CPA Lifetime Member Owen R. Ashton, CPA Woman to Watch: Experienced Leader Lisa Heise, CPA Woman to Watch: Emerging Leader Aubrey Bickmore Neeley, CPA 32

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Photos, Inaugutation & Awards

CPAs Honored at Inauguration New CPAs represented were licensed between August 2014 and July 31, 2017 Lindsey Allen, CPA Valerie Anderson, CPA Brok James Bardsley, CPA Kyle Beatie, CPA Brigham Beutler, CPA Gene Bott, CPA Devin Brown, CPA Aaron R. Burgoyne, CPA Karla Carpenter, CPA Arnousone Chanthalyxay, CPA Renu Chopra, CPA John Christensen, CPA Ben Claridge, CPA Benjamin Cole, CPA Kyle Condie, CPA Amy Crawley, CPA Chase Cuthbertson, CPA Jonathan E. Davies, CPA Spencer Doman, CPA Rachel Star Elder, CPA Kyle Ellis, CPA David Erickson, CPA Craig Estep, CPA

Benjamin Everitt, CPA Jayna Forsgren, CPA Sharon Fullwood, CPA Rick Gallacher, CPA Lauren Gowen, CPA Dustin Graham, CPA Eric Greene, CPA Byron Gurney, CPA Lance Hackett, CPA Justin Hales, CPA Andrea Hansen, CPA Sarah Anne Harker, CPA Kyle Hepworth, CPA Robbie Hicks, CPA David Higham, CPA Parker Huber, CPA Peter Hughes, CPA Stephen Humphries, CPA Jeannine Jensen, CPA Brian Jepperson, CPA Aaron Johnson, CPA Angela Jones, CPA Lannie Jorgensen, CPA Jose Jorges, CPA

Chris Kent, CPA Camille Koberstein, CPA Eugene Leontyuk, CPA Shawn Miller, CPA Stephen Millet, CPA Jamie Oldroyd, CPA Kevin Peaden, CPA Nancy Perry, CPA Amy Petersen, CPA Allison Pittsley, CPA Lindsay Poelman, CPA Madilyn Rockwood, CPA Bryce A. Rother, CPA L. Kofi Saahene, CPA Michael Sardoni, CPA Elisa Schvaneveldt, CPA James Stanton, CPA Joanna Tarantola, CPA Thanh (Brandon) Trieu, CPA Jordan Turnbow, CPA Charles Walker, CPA Ammon Warner, CPA Jace Wilkins, CPA Rachel Young, CPA

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Photos, Inaugutation & Awards

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Photos, Leadership Academy

Leadership Academy was held Nov. 8 - 10. Prior to the three-day retreat in Park City, the eight attendees volunteered at Guadalupe School teaching financial literacy through Junior Achievement. Dan Griffiths, CPA led the Park City retreat.

AICPA Council in San Antonio President-elect Matt Klein and UACPA CEO Susan Speirs are joined by Barry Melancon and Bill Reeb during AICPA Council in October of 2017.

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YOU KNOW THE NUMBERS. NOW LEARN THE NUANCES.

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CGMA, CHARTERED GLOBAL MANAGEMENT ACCOUNTANT, and the CGMA logo are trademarks of the Association of International Certified Professional Accountants. These trademarks are registered in the United States and in other countries. 18652-326

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Member Benefits

The UACPA Honors 100% Membership

agility

Congratulations to the firms and businesses curerently participating in the UACPA's 100% membership program. This demonstrates their commitment to the profession, to the Association's high ethical standards and a commitment to life-long learning.

the uacpa's affinity partners help you get the most out of your membership Agility offers UACPA members a 10% discount on any of their ReadySuite solutions. Contact Trevor Mickelson at 720-490-4531, or Trevor.Mickelson@agilityrecovery.com.

adp

ADP offers free payroll and free 401k services to members and affiliates. Please contact Alan Palacios at 801-956-7823 or alan.palacios@adp.com for more information.

beehive insurance

Groups with 2 to 100 eligible employees can participate in medical, dental, vision, telehealth and voluntary onsite programs through this plan. For more information, contact Todd Valentine, 801-743-7788, tvalentine@beehiveinsurance. com

national affinity service

Identity protection experts have you covered for $12.95 per month or $16.95 per month for a family. Visit healthwealth. fit/uacpa_infoarmor

cch

UACPA members receive a discount on the U.S. Master Tax Guide and more. Visit cchgroup.com and use code Y3819

itransact

iTransact, a full service payment processing company, rewards UACPA members with a residual payout program. Email Colston Robinson, c.robinson@itransact.com or call 801-951-8178.

camico

The Mutual Insurance Company offers UACPA members a variety of benefits. To learn more, call 800-652-1772 or email inquiry@camico.com.

PUBLIC PRACTICE • CBIZ • Cook Martin Poulson • Davis & Bott • Eide Bailly • Hawkins • Haynie & Company • Jones Simkins • Pinnock, Robbins, Posey & Richins • PricewaterhouseCoopers • Savage Esplin & Radmall • SQuire • Stayner Bates & Jensen • Tanner, LLC INDUSTRY • LDS Church Auditing Department • Workers Compensation Fund

Firms with 10 or more full-time CPAs are eligible to be a part of the 100% membership program. Learn more by talking to Braden Thompson, bthompson@uacpa.org or call 801.466.8022

office depot

UACPA members can save up to 80% on office products, printing, technology and furniture. Visit www.officediscounts. org/uacpa to learn more.

Learn more about member benefits by talking to Amy Spencer, as@uacpa.org or calling 801.466.8022 the journal entry | January 2018

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1

IN MEMORIAM August (Gus) Glissmeyer Jr.

April 26, 1926 — June 22, 2017 UACPA Member since 1930

Ronald Day

Oct. 24, 1946 — June 1, 2017 UACPA Member since 1946

Kenneth EldWin Bement May 23, 1955 — June 30, 2017 UACPA Member since 1980

Keith Floyd Barnett

Oct. 31, 1930 — Jan. 21, 2017 UACPA Member since 1984

Barry AlVin JenKins

March 4, 1951 — May 25, 2017

The Journal Entry is printed by Transcript Bulletin Publishing.

We're a full service local printing company who enjoys printing for UACPA and would like to provide our printing services to you.

Call Shane at 435-840-0344

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The Rules Have Changed Don'’t Miss Out on Your New CPE Requirements Utah CPAs are required to earn three hours of ethics and one hour on the Utah CPA Licensing Act and CPA Licensing Act Rules (Utah Laws & Rules) per CPE reporting period. This requirement applies to the current reporting year, which has been extended and now ends December 31,2018.

Credits

Find ethics courses that will fulfill the three mandatory credits by visiting www.uacpa.org/ethics.

For the Utah Laws & Rules credit, the UACPA has created a webinar to fulfill that requirement.

Webinar

The Utah Laws & Rules webinar is accessible through www.uacpa.org. It can be accessed through the CPE tab on the main page.

ContactList

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Accounting Issues

When UACPA members have questions about accounting issues, help is available from the UACPA Accounting Issues Committee.

Each month, a member of the committee is assigned to answer accounting questions and help you interpret the rules as they apply to your particular situation. The following members may be contacted during the months listed.

January

February

Ted Rokich 801-263-3090 trokich@fdic.gov

Larry Deppe 801-626-7838 deppelarry@msn.com

www.facebook.com/utahassociationofcpas

March Mark Anderson 801-532-2200 mva@prolunginc.com

www.twitter.com/uacpa

CPE Approval â&#x20AC;&#x201D; Does This Qualify?

When UACPA members have questions regarding CPE Approval and whether or not something may or may not qualify, they can turn to the UACPA CPE Approval Committee for answers. Each month, committee members are assigned to answer member questions related to CPE approval. Below are the members who may be contacted with your questions.

January - March Steve Avis 801-532-7800 stevea@hayniecpas.com

Tax Issues

Scott L. Robinson 801-990-5918 srobinson@tannerco.com

The Tax Issues Committee focuses on legislative and regulatory issues and does not answer technical questions. For assistance with a technical matter, please refer to the UACPA referral tool at uacpa.org. Direct questions related to legislative or regulatory issues to taxissues@uacpa.org

Classified Ads To place your classified advertisement and reach Utah CPAs, contact the UACPA at mail@uapca.org.

Interested in Buying a Practice? See local and nationwide listings at www.APS.net and register for free email updates or call us at 1-800-397-0249.

THINKING OF SELLING YOUR PRACTICE? Accounting Practice Sales is the leading marketer of accounting and tax practices in North America. We have a large pool of buyers, both individuals and firms, looking for practices now. We also have the experience to help you find the right fit for your firm, negotiate the best price and terms and get the deal done. To learn more about our risk-free and confidential services, call Ryan Pannell with The Holmes Group at 1-800-397-0249 or email Ryan@APS.net. the journal entry | January 2018

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Utah Association of CPAs 136 S. Main Street, Suite 510 Salt Lake City, UT 84101

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PAID Salt Lake City, UT Permit No. 1996

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