On Balance Magazine - May/June 2019

May | June 2019 | Vol. 15 No. 3 A publication of the Wisconsin Institute of CPAs | wicpa.org

Full-Circle Journey Neil Keller, CPA/ABV, CVA Chair, 2019-2020 WICPA Board of Directors

Plus: Passion for the profession | 12 Applying emotional intelligence | 18 Automating the audit | 28 State tax deduction limitations | 30

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A publication of the Wisconsin Institute of CPAs | wicpa.org

8 Features

Columns

8 Full-circle journey A WICPA Educational Foundation scholarship helped put Neil Keller on the path to becoming a CPA. Now he’s the incoming chair of the WICPA board of directors.

By David Lewellen with Marcia Tillett-Zinzow

26 RETAIL INDUSTRY

How to choose the right POS software A WICPA member shares the experience of researching and finding the right point-of-sale software for her side business.

By Heather Martinez, CPA

12 The profession he loved Terry Von Haden, CPA, co-founded one of Wisconsin’s major public accounting firms. After he passed away last year, his family chose a special way to honor his memory.

By Marcia Tillett-Zinzow 18 Workplace relationships Learning to apply emotional intelligence to identify and adapt to specific personality types can foster a more harmonious workplace.

By Rick Piraino

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28 TECHNOLOGY

The power of intelligent automation Auditors are engaging intelligent automation, cognitive technology and other tools to help make sense of our complex digital world.

By Thomas Klockner, CPA 30 TAX

Entity-level state tax deduction limitations While Wisconsin Act 368 contains provisions that allow pass-through entities to elect to be taxed at the entity level, CPAs should consider the hidden costs.

By David J. Kamps, CPA

21 The 2019-2020 WICPA Board of Directors Meet the 15 individuals who will provide strategic governance in accordance with the WICPA strategic plan, mission and vision.

34 HUMAN RESOURCES

What accounting talent wants in 2019 What does it take to keep your top performers happy and attract new top talent to your team?

You can give them what they want if you know what it is.

By Andrew Carr

22 Ensuring your financial future Thoughtful personal financial management at each stage of your career can help you have the life you want in retirement.

By Kevin Reardon, CFP

38 HR/BRANDING

Want better hires?

Knowing what top talent wants is one thing, but hiring managers should also know their personal brand can have an impact.

By Carver Smith, CPA

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May | June 2019 Vol. 15 No. 3

28 Departments 2 Odds & Ends | news briefs 3 Outlook | chair’s letter 4

Membership Matters | member benefits

15 Memorials | departed members 16 In Touch | president & CEO’s message 33 Kudos | members in the news

On Balance

May | June 2019

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Odds & Ends Search for new FASB and GASB chairs 2019-2020 WICPA OFFICERS/BOARD MEMBERS Chair Neil R. Keller, CPA/ABV, CVA Chair-elect Wendi M. Unger, CPA Past Chair Michael D. Akers, CPA, CBM, CFE, CGMA, CIA, CMA, PhD Secretary/Treasurer Katherine L. Hauser, CPA, CGMA Directors Jeff Dewane, CPA, CGMA, CMA, MBA Jon C. Gaines, CPA, CGMA, MBA Patrick G. Hoffert, CPA Daniel Holzhauer, CPA Ruth A. Kallio-Mielke, CPA Wendy A. Peters, CPA Steven A. Pullara, CPA Matthew J. Schaefer, CPA, CGMA Angela C. Thomas, CPA AICPA Council Ryan J. Hanson, CPA, CGMA Terri M. Lillesand, CPA President & CEO Tammy J. Hofstede Design & Layout Brett Stallman Advertising Terry Felker Editor Marcia Tillett-Zinzow Printing Delzer

FASB Chairman Russell Golden and GASB Chairman David Vaudt will both conclude their terms on June 30, 2020, and the Financial Accounting Foundation (FAF) has launched a search to replace them. The FAF’s Board of Trustees Appointments Committee is beginning to search for candidates with varied backgrounds and experience from diverse talent pools. The new leaders, who will serve seven-year terms, will help determine each board’s future direction in their missions to improve financial accounting and reporting standards. (http://tinyurl.com/fafchairsearch)

Does digital deception translate to résumés?

Much concern has been raised about deceptive information broadcast through social media channels. If you’re a hiring manager, do you ever wonder how accurate your candidates’ LinkedIn profiles are? According to a 2012 survey conducted by academic researchers, the information provided on social media is probably more credible than that on many traditional résumés. The authors found that digital deception is lower for information that can be endorsed by colleagues, such as educational background, work experience and professional skills.

– “The Effect of LinkedIn on Deception in Résumés,” J. Guillory and J.T. Hancock, Cyberpsychology, Behavior, and Social Networking, February 2012. (http://bit.ly/2zwyvqi)

The oft-overlooked cybersecurity threat It’s no secret that corporate cybersecurity is a complex and expensive war that never ends. For many organizations, exposure of sensitive information can be catastrophic.

A 2018 report by IBM Security and Ponemon Institute claimed the total cost from security breaches rose by more than 6 percent between 2017 and 2018. Faced with the growing threat, companies everywhere rush to reinforce workstation and network security—and overlook other connected devices such as printers. (http://tinyurl.com/corpcybersecurity)

Most audits occur in low-income areas According to a recent analysis of IRS records, audits are more likely to occur in poor, rural communities, especially in the South. The IRS return selection process is designed to select returns with the highest likelihood of noncompliance, and this often involves the Earned Income Tax Credit (EITC), which is sometimes claimed in error. In an analysis of U.S. counties, eight of the top 10 highest number of audits occur in Mississippi counties. Wisconsin’s Calumet and Washington counties rank third and fourth out of the 10 lowest number of IRS audits. Due to IRS spending cuts, audit rates for millionaires have declined by half since 2010. Corporate audits also have declined. (http://tinyurl.com/irsauditrates)

Join us online!

On Balance is published five times a year by the Wisconsin Institute of Certified Public Accountants (WICPA).

Change of address should be sent to: Membership, W233N2080 Ridgeview Pkwy, Suite 201, Waukesha WI 53188; Phone: 262-785-0445 or 800-772-6939; Fax: 262-785-0838; email: jessica@wicpa.org.

Statements and opinions expressed are those of the authors and not necessarily those of the WICPA. Publication of an advertisement does not constitute an endorsement of the product or service by On Balance or the WICPA. Articles may be reproduced with permission. © Copyright 2019 On Balance.

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WANT YOUR BUSINESS MENTIONED IN ODDS & ENDS? Email your announcement to kristen@wicpa.org.

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OUTLOOK | CHAIR’S LETTER “Look for opportunities to help pave the path instead of just walking behind.”

Taking ownership of our profession

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s I enter my time as the WICPA board chair, I think back to the opportunities that were offered to me as a result of being involved with the WICPA. While there are many, I believe the biggest opportunity was the ability to take ownership of my profession.

Back when I was a new CPA, I can admit that I wasn’t all that sure of why the WICPA was important to my career, besides providing CPE opportunities. This quickly changed the first time I volunteered for the WICPA and found out exactly what I had been missing: a role in shaping the profession to which I had dedicated my career.

From my time on the Finance Committee, where we were charged with securing the financial stability of the WICPA, to my time on the Accounting Careers Committee, where we implemented strategies to inform and encourage future generations to become part of our great profession, I was developing a much larger view of the accounting profession. On these committees, I found that my thoughts and ideas mattered and impacted not only the accounting landscape today but also into the future.

Through this early involvement, my love of the profession continued to grow. The idea that my involvement was making a real difference was both rewarding and addicting.

I felt driven to do more and regularly looked for additional opportunities to volunteer. This led me to the WICPA board of directors.

My first term on the board was both eye opening and a little overwhelming. During that time, I learned of all the great things the WICPA does for its members, such as the importance it places on volunteers and its key role in keeping the profession safe and successful. I also learned that the strength and direction of the accounting profession doesn’t happen just by chance but by the hard work, strategic mindset and creative thinking of its member volunteers. From the Public Policy Committee’s

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lobbying efforts in Madison about issues that directly affect the accounting profession to the Young Professionals Committee’s dedication to invigorating new CPAs to pave a pathway for future accounting leaders, WICPA members influence the community in many ways. Every day and around the state, members are taking ownership of their profession, helping it be bigger, better and stronger than it was the day before.

When I was asked by the WICPA to represent Wisconsin on the AICPA Council, my big new perspective of the profession got a whole lot bigger. I was now strategizing on the accounting profession at a completely different level—and not only as to how it affects me or even just Wisconsin CPAs, but CPAs across the United States. I still remember the surreal feeling of being on Capitol Hill in Washington, D.C., ready to meet with a member of the U.S. Congress about issues that affect the accounting profession. I remember thinking, “Can I possibly be the same CPA who thought the best thing the WICPA does for accounting was provide good training opportunities?” In all honesty, I wasn’t the same CPA, and it was the WICPA that provided the opportunities that changed me.

Could I have had a seemingly successful career without my involvement in the WICPA? Sure, the same way you can release a balloon in the air and the wind might take it to where you want it to go. However, knowing that I am going to leave the profession in a much better place than I found it due to my involvement makes me realize I made the better choice.

None of this would have happened if I hadn’t taken that first step. That is why I encourage everyone to get involved.

Take ownership of YOUR profession. Look for opportunities to help pave the path instead of just walking behind. Even if that opportunity looks small at first, you never know where you might end up—and wherever it is, you will know you helped yourself get there.

Neil Keller, CPA/ABV, CVA, is partner-in-charge, tax services at Sikich LLP, Brookfield, and has been in public accounting for 25 years. He is the 2019–2020 chair of the WICPA board of directors. Contact him at 262-754-9400, ext. 248, or neil.keller@sikich.com.

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MEMBERSHIP MATTERS “Our members are the heart of this organization, and we succeed in our mission to serve the accounting profession because of members like you.”

It’s that time of year again!

Renew your dues to stay connected!

F

irst of all, thank you for your support of the WICPA. Our members are the heart of this organization, and we succeed in our mission to serve the accounting profession because of members like you.

Get the most out of your WICPA membership The WICPA is a unique network of like-minded individuals—people just like you—with more than 7,300 accounting and business professionals who have access to valuable resources ranging from cutting-edge industry news to CPD savings, networking events, volunteer opportunities and other exclusive member benefits. The best way to get the most value from your membership is to get involved and take advantage of these offerings.

Stay connected to the accounting profession The WICPA offers you the resources you need to support your career, including the following: • Significant savings on programs and services for individuals and businesses • Networking opportunities with peers and business professionals at Networking Nights and special events to make contacts and renew professional relationships • Member pricing on CPD, featuring authoritative voices who deliver world-class professional development experiences and timely topics about issues impacting the accounting profession • Up-to-date news on tax law revisions, including frequent updates on state and federal legislation that impact the profession and the Wisconsin business environment • Opportunities to serve on committees and develop your leadership abilities

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Don’t lose access to these and many more valuable member benefits. Continue your membership by renewing today. Visit wicpa.org/renew to pay your dues, or call Member Services at 262-785-0445.

Tammy J. Hofstede is president & CEO of the WICPA. Contact her at 262-785-0445 ext. 4518 or tammy@wicpa.org.

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JOIN US AT UPCOMING PROGRAMS & EVENTS! MAY 17

Adopting a Continuous Improvement Approach, Appleton

MAY 17

Conducting an HR Compliance Audit: From Hire to Fire & All Points In-Between, Madison

MAY 23

School District Audit Conference, Wisconsin Dells

JUNE 6

Audits of 401(k) Plans, Waukesha

JUNE 11

Networking Night at Cave of the Mounds, Blue Mounds

it’s time to

renew

your membership

JUNE 18

Networking Night at Appleton Beer Factory, Appleton

JUNE 20

Networking Night at 4 Sisters Wine Bar & Tapas Restaurant, La Crosse

JULY 16

Networking Nights at ABV Social, Wauwatosa

keep your member benefits coming If you have not yet renewed your 2019–2020 membership, visit wicpa.org/renew for quick and easy online payment to keep your valuable member benefits coming, including On Balance magazine.

Pay your dues in the “My WICPA” section on the WICPA website. For information regarding your membership, contact Jessica Murphy at 800-772-6939 ext. 4502 or jessica@wicpa.org.

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May | June 2019

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Accounting Career Awareness in the Classroom

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o assist with broadening and advancing the awareness, perception and future of the accounting profession, the WICPA Educational Foundation supports numerous state-wide activities. One of those activities is awarding Accounting Career Awareness Grants to Wisconsin high school accounting and business educators for classroom projects and activities that promote accounting as a career.

Sandra Davies, Mauston High School, for registration for Lakeland University’s Forensic Accounting Competition and the Finance and Investment Challenge Bowl, and a tour of Lutz Tax & Accounting Inc. to learn about careers in public accounting.

The WICPA Educational Foundation would like to recognize and congratulate the following 37 high school accounting and business educators who have been awarded an Accounting Career Awareness Grant for 2019.

Stacey Gardiner, Iowa-Grant High School, for tours of Palermo’s Pizza and Harley-Davidson Museum to learn about accounting careers in different industries.

Kathryn Beres, Shawano Community High School, for tours of Baker Tilly and UW-Madison to learn about accounting careers in public accounting and college.

Bradley Brown, Kimberly High School, for a subscription to Fraud Magazine for “Fraud Friday” where the students discuss fraud and fraud prevention.

Kelli Cairo, Indian Trail High School and Academy, for a tour of Fiserv Forum to learn about accounting careers in the professional sports industry.

Michael Cassidy, Mount Horeb High School, for tours of a local FBI field office and Fiserv Forum and to meet with local accountants to learn about forensic accounting and accounting careers in the professional sports industry.

Emalea Cogdill, Gale-Ettrick-Trempealeau High School, for tours of the Milwaukee County Zoo and Fiserv Forum to learn about accounting careers in different industries.

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Teresa Duda, Waupaca High School, for a tour of Epic Systems to learn about careers in corporate accounting.

Samantha Goss, Fennimore High School, for tours of Poppy CPA, Outlets at the Dells, Knuckleheads Trampoline and Indoor Amusement Park, Buffalo Phil’s Pizza & Grille, Kalahari Resorts and Epic Systems to learn about accounting careers in different areas of the profession.

Dave Haas, DeForest Area High School, for tours of a Harley-Davidson manufacturing plant and Miller Park to learn about accounting careers in different industries.

Nicholas Heiting, Wauwatosa West High School, for tours of Ernst & Young and the Milwaukee Admirals business office to learn about accounting careers in public accounting and the professional sports industry.

Mary Helgemoe, Beaver Dam High School, for a tour of Miller Park to learn about accounting careers in the professional sports industry.

Judith Holappa, Mayville High School, for tours of Baker Tilly, TRUE Consulting LLC and Lambeau Field to learn about accounting careers in public accounting and the professional sports industry.

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Gina Holmes, Sun Prairie High School, for tours of a Big Four public accounting firm in the Milwaukee area and Miller Park to learn about accounting careers in public accounting and the professional sports industry.

Dawn Jameson, Wausau West High School, for tours of Wipfli LLP and Miller Park to learn about accounting careers in public accounting and the professional sports industry.

Cynthia Jensen, Cambridge High School, for a tour of Lambeau Field and an in-depth classroom presentation to learn about accounting careers in the professional sports industry.

Lisa Kiefer, Menomonee Falls High School, for registration for Lakeland University’s Forensic Accounting Competition.

Amber Laska, Hortonville High School, for registration for Lakeland University’s Forensic Accounting Competition and participation in UW-Whitewater’s Explore Accounting Day. Darlene Londo, Appleton East High School, for hosting an annual Accounting Luncheon.

Zachary Lynn, Potosi High School, for tours of Epic Systems and Broyles & Company CPAs LLC to learn about careers in private and public accounting.

Tammy Makovec, Verona Area High School, for tours of a Madison-based public accounting firm, Madison College’s Business Department and the Kohl Center’s Finance Department to learn about accounting careers in public accounting, education and the professional sports industry.

Becky Marquardt, New London High School, for tours of CliftonLarsonAllen, the Milwaukee County Zoo and Cousins Subs to learn about accounting careers in different areas of the profession.

Amy McCutchen, Holmen High School, for tours of Epic Systems and Trek Bikes to learn about careers in corporate accounting.

Christina Mitchell-Leitner, Westfield Area High School, for registration for Junior Achievement’s JA Titan and JA Business Challenge programs, participation in Titans are Accountants Day at UW-Oshkosh, and tours of a public accounting firm and the Resch Center to learn about accounting careers in public accounting and the professional sports industry.

Terry O’Dell, Sheboygan North High School, for registration for Lakeland University’s Forensic Accounting Competition, participation in UW-Whitewater’s Explore Accounting Day, and tours of CliftonLarsonAllen, Miller Park, Mayfair Mall and Lakeland University to learn about accounting careers in different areas of the profession.

Debra O’Leary and Brandon Miles, Joseph A. Craig High School, for participation in UW-Whitewater’s Explore Accounting Day and a tour of Fiserv Forum to learn about accounting careers in the professional sports industry.

Laura Olson, Edgerton High School, for participation in UW-Whitewater’s Explore Accounting Day and tours of

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Epic Systems and Vitense Golfland to learn about accounting careers in corporate accounting and the entertainment industry.

Jason Pertzborn, Middleton High School, for a tour of Fiserv Forum to learn about accounting careers in the professional sports industry.

Chad Roehl, Big Foot High School, for registration for Lakeland University’s Forensic Accounting Competition and tours of Deloitte & Touche and UW-Milwaukee Lubar School of Business to learn about accounting careers in different areas of the profession.

Richard Schuh, Parker High School, for participation in UW-Whitewater’s Explore Accounting Day and tours of Baker Tilly, Summit Accounting Group Inc. and the corporate headquarters of Blain’s Farm & Fleet to learn about accounting careers in different areas of the profession.

Gary Spencer, John Edwards High School, for tours of SVA Certified Public Accountants and J.H. Findorff & Son Inc. to learn about accounting careers in forensic accounting and construction.

Graig Stone, Sheboygan South High School, for registration for Lakeland University’s Forensic Accounting Competition, participation in UW-Whitewater’s Explore Accounting Day, and tours of CliftonLarsonAllen, Miller Park, Mayfair Mall and Lakeland University to learn about accounting careers in different areas of the profession.

Sara Sturm, Hartford Union High School, for tours of UW-Oshkosh and Grant Thornton to learn about the journey from high school student to the professional accounting world.

Elizabeth Tillema, Oconomowoc High School, for registration for Lakeland University’s Forensic Accounting Competition and tours of Ernst & Young and Fiserv Forum to learn about accounting careers in public accounting and the professional sports industry.

Tina Trumbower, Waunakee Community High School, for a Brunch with CPAs program to learn from a panel of CPAs about their career paths and tours of SVA Certified Public Accountants and Berndt CPA to learn about careers in public accounting.

Steve Wills, Random Lake High School, for participation in UW-Whitewater’s Explore Accounting Day and tours of CliftonLarsonAllen, Miller Park, Mayfair Mall, Lakeland University, Park Piedmont Advisors and the Federal Reserve Bank of Chicago to learn about accounting careers in different areas of the profession.

June Winkel, Plymouth High School, for registration for Lakeland University’s Forensic Accounting Competition and tours of RitzHolman and Northwestern Mutual to learn about accounting careers in different areas of the profession.

The WICPA Educational Foundation would like to thank these educators again for going above and beyond to cultivate student awareness of accounting careers, as well as thank the donors and volunteers who make programs like this possible. If you’d like to learn more about the WICPA Educational Foundation or make a donation to support this and other similar activities, visit wicpa.org/EdFund.

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Photography by Matthew Stout

Full-Circle Journey Meet the 2019–2020 WICPA Board Chair: Neil Keller, CPA/ABV, CVA

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The WICPA’s new board chair sees parallels between coaching his daughters’ soccer teams and managing staff.

By Dave Lewellen with Marcia Tillett-Zinzow

N

eil Keller has officially come full circle.

When he was a teenager, a WICPA Educational Foundation scholarship helped put him on the path to becoming a CPA. Now, almost 30 years later, he’s the incoming chair of the WICPA board of directors.

Keller’s journey began on his parents’ dairy farm near Oconomowoc, where he was instilled with a strong work ethic as he grew up. “The cows had to be milked twice a day. They didn’t care if it was Christmas, or if you had a cold,” he said. But even in the 1980s, both Keller and his father could see that the small family farm was not a sustainable way to make a living.

Keller applied to UW–Whitewater with the intent of studying business, but he wasn’t sure what field to focus on.

Since the WICPA scholarship was conditional on declaring an accounting major, he made that choice—and found that he loved the coursework.

“The theory clicked with me and made sense to me,” he said.

“I liked the fact that everything stays in balance.”

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What started as a small ambition has developed into a career.

Keller is now partner-in-charge of tax at Sikich, a full-service consulting firm with an office in Brookfield.

On the personal side, Keller lives in Pewaukee with his wife, Lynn, who is a tax senior manager at Sikich, and their two daughters. He enjoys watching sports, playing softball and coaching his daughters’ soccer teams. He sees a parallel between managing their teams and managing staff at Sikich: “I tell the girls, ‘You don’t have to run the fastest or kick the ball the farthest. Just know your role and perform the best you can, and we’ll do well.’”

What it takes to lead “There are two types of leaders,” Keller said, “those who are followed because of their titles and those who are followed because people want to follow them.” It goes without saying that he aims to be the second type. His Sikich colleagues agree that he is.

“People want to follow him, and not everybody has that.

You can’t always teach it,” said Mark Sobczak, CPA, partner-

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Keller is partner-in-charge of tax services at Sikich LLP in Brookfield.

in-charge of Sikich’s Milwaukee location. “He’s a good mentor to the staff, and he elevates the performance of the people around him, both above and below.” When Keller came on board in 2007, Sobczak identified him as a future leader of the firm and someone who would continue to grow.

Tom Luken, CPA—a Sikich partner and the firm’s chief operating officer—agrees. “Neil is a strong administrator and director of personnel and a very practical practitioner,” he said. “I think his greatest strength is talent development and recruitment and retention, and in our industry that’s crucial.

He takes a hands-on approach. He rallies the troops and does a great job.”

A maxim that Keller learned from Luken is “Make five people below you better than you.” He is proud that the two most recent tax partners at Sikich began their time with the company as interns and rose through the ranks. “To know you’re a part of that is awesome,” he said.

In his role as partner-in-charge of tax, Keller now does less hands-on tax work and keeps busy with administration: training, recruitment, software and making sure that his staff are developing, happy in their roles and not overworked. At a time when competition for talent is stiff, keeping workers happy and helping them find their best roles is vital.

“Employees have a lot of options. They could work at a lot of different places,” Keller said. “We give them the

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environment to succeed and treat them as professionals.

There’s no need to have a rigid structure in place. You can work remotely or have different hours, and if you’re getting your work done and serving the client, I couldn’t care less about how or where it happens.”

That understanding is part of what makes Keller successful as a leader in his firm. His colleagues agree that he’ll also succeed as board chair. “He’s going to be great,” Luken said.

“He’s very extroverted, and he enjoys the people side. It’ll suit him very well.”

Advancing the profession There are some 12,000 licensed CPAs in Wisconsin, and the WICPA’s membership is about 7,300. Keller thinks that number can grow with some attention.

“We need to toot our own horn; show all the things we do,” he said. He plans to spend significant time in all corners of the state, showing the WICPA’s support for those areas and welcoming people in.

He observes that, while the WICPA is perhaps best known for professional development, there are other significant benefits of membership that many aren’t aware of. “People don’t necessarily know there’s an opportunity to ‘own’ the profession, to make decisions that make it a better profession,” Keller said.

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One example is the lobbying effort that resulted in passage of AB 188, the Wisconsin Assembly bill that proposed mandatory continuing professional development for CPA license renewal in Wisconsin. WICPA members from across the state were instrumental in educating legislators and getting the bill passed and signed into law as 2017 Wisconsin Act 88. Until then, Wisconsin had been the only jurisdiction that did not have the requirement, which makes it easier for CPAs to practice across state lines.

(See On Balance, March/April 2018.)

Looking to the future Michael Akers, CPA, PhD, the 2018–2019 board chair who passed the gavel to Keller, expects a smooth transition since Keller has been intimately involved with the workings of the board for several years. “He’s a very personable individual who knows how to effectively use humor and can deal with people at a variety of levels,” Akers said.

website, proactive efforts to rethink continuing professional development and, possibly most important, the WICPA’s active monitoring of legislative activity.

“In this rapidly changing political environment, the WICPA and its lobbying efforts help keep the profession safe from damaging legislation while building relationships with state and federal legislators that will secure and strengthen the profession into the future,” Keller said.

He’d like to see more members become actively involved in that effort and in other WICPA activities—no matter how small at first—as a way to explore, discover and take ownership of their profession. He cites his own full-circle journey as an example: “I have often said that until I got involved with the WICPA, I didn’t truly own my profession. I want to share my story, share the WICPA’s story and get people excited about what it means to be a CPA.”

Keller looks forward to his year as board chair and said his primary goal is to get more people actively involved.

He believes the biggest issue facing CPAs today is the pace of change the profession is experiencing. He thinks the WICPA understands the evolution of the profession and is embracing it. As evidence, he points to the new

David Lewellen is a freelance writer based in Glendale.

Contact him at davidlewellen@gmail.com.

Marcia Tillett-Zinzow is a Wisconsin freelance writer and editor. Contact her at mtzinzow@icloud.com.

ATTENTION! THE CURRENT CPD REPORTING PERIOD ENDS DEC. 31, 2019 Reporting Period: Jan. 1, 2018 – Dec. 31, 2019 CPD Requirement: 80 total CPD credits Ethics Requirement: 3 Ethics CPD credits

Visit wicpa.org/CPD for more information about CPD requirements.

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The Profession He Loved The Von Haden family honors their patriarch with a memorial scholarship that will help students enter the profession he loved.

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By Marcia Tillett-Zinzow

T

erry Von Haden, CPA, passed away in June 2018, after a 45-year career that included co-founding a major Wisconsin public accounting firm. To honor his devotion to the profession, to his clients and to those he mentored, the family has donated $50,000 to the WICPA Educational Foundation to establish a memorial scholarship.

offering personal advice when needed.

“They would come and talk to Terry like a father figure,” Jan said.

He enjoyed this part of his job and, as a successful leader with a strong track record, he was wellsuited to help young CPAs build their business.

In 1974, Terry and John Suby co-founded the Madison accounting firm of Suby, Von Haden & Associates S.C. (now SVA Certified Public Accountants S.C.). Terry was a strong contributor to the accounting profession and mentored numerous young professionals as they began their CPA journeys in his firm. Many are now leaders in their own right.

The Von Haden Memorial Scholarship will be presented annually to a deserving college accounting student who has set the goal of becoming a certified public accountant. The current scholarship amount is $2,500.

“We greatly appreciate the substantial contribution the family is making,” said Mike Friedman, president of the WICPA Educational Foundation. “It is a wonderful way to pay tribute to Terry and his 45-year career, his community service and professionalism, and his success as the leader of a major Wisconsin firm.”

Terry’s journey Terry Von Haden’s journey began on a dairy farm in Elroy and took him to the top of the firm he founded. Along the way, he earned a Bachelor of Science degree in accounting (1961), served in the Wisconsin Army National Guard (1962–1974) and gained early experience working in the private sector before entering the public accounting arena.

The small Madison firm of Suby, Von Haden grew and evolved over the years and is now known as SVA Certified Public Accountants, with offices in Madison, Milwaukee, Appleton and Rockford, Illinois.

“Terry was the kind of leader who worked hard for his clients, treated his office like a second home and considered his employees part of the family,” said his wife, Jan, who recently retired from SVA as a seasonal tax preparer—a position she enjoyed for 15 years, working alongside her husband until he retired in 2014.

The couple were married for 44 years and have three married daughters: Sara Esslinger, Tracy Van Andel and Kristin Heelan.

Tracy’s husband, Eric, is also a CPA.

Leading by example Terry was passionate about the accounting profession, and he was a strong believer in giving back. One of the ways he did so was by mentoring the young professionals in his firm, even

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“He would tell them they needed Terry Von Haden, CPA to get to know their clients, understand their needs and be there for them,” she said. “He wanted these young CPAs to do their best and make the firm proud of them, and to keep the clients happy, too. He was instilling a work ethic and a sense of reliability and responsibility. He had those traits, and he cultivated them in the young staff accountants.”

One of Terry’s mentees followed his mentor’s footsteps right to the top leadership position at SVA CPAs. Carl Schultz, CPA, the firm’s president and CEO, remembers Terry as a hardworking, family-oriented professional whose legacy lives on at the firm.

“Terry’s strong work ethic and his passion for our industry and for the success of SVA’s clients became the cornerstone of our firm’s culture,” Schultz said.

“As a mentor to me early in my employment with SVA, Terry took a genuine interest in ensuring my success. But he didn’t stop there—he would routinely stop by my office to ask how each member of my family was doing. He had an incredible memory for spouses’ and children’s names.”

Relationship building came naturally to Terry, and as a result, many of his clients became family friends.

“He would take the girls to their homes for trick or treat on Halloween, or he would take them along when he had to drop something off,” Jan said. “It was a nice connection he established between his clients and our family. So many are still close friends of ours.”

Serving profession and community Involvement in the profession and service to the community were strong values for Terry. He served on numerous boards throughout his career, including the Oakwood Foundation board of directors and finance and investment council, the

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Society of St. Vincent DePaul, Four Seasons Theater, Methodist Health Services, St. Mary’s Hospital Foundation and the Meriter Foundation. He also served on the State of Wisconsin Accounting Examining Board, having been appointed by Gov. Tommy Thompson.

In addition to the WICPA, Terry was also a member of the American Institute of CPAs and the National Association of Accountants.

Terry and Jan served the Madison community together through involvement in many charitable fundraising events.

In 2004, they were selected to be honorary chairs for Olbrich Botanical Gardens’ Rhapsody in Bloom, an event the couple had always enjoyed.

Finding a way to honor him The Von Haden Memorial Scholarship is the family’s effort to keep Terry’s memory alive and to pay tribute to his love for, and contributions to, the accounting profession. Jan had toyed with the idea before Terry died. “I knew I wanted to do something, but I didn’t know how to go about it,” she said.

Giving back to the profession you love The WICPA Educational Foundation plays a pivotal role in supporting programs to improve awareness and perceptions by educating students and educators about the exciting opportunities available to accounting professionals. Scholarships awarded by the foundation can help ease the cost and encourage more students to reach for the goal of becoming a CPA. Establishing a memorial scholarship like the one described in this article is an admirable way to honor a loved one’s legacy while helping to further the profession. But there are other reasons to adopt a spirit of giving back. According to the Mental Health Institute, giving back can actually help reduce stress, improve emotional well-being and benefit physical health. In short, it makes you feel good.

She asked some of the family’s investment advisors and found they didn’t handle such things for clients. She went to a friend whose husband was a professor at the University of Wisconsin and learned that UW had a scholarship vehicle for students, but it didn’t seem like the right fit.

After Terry passed, the idea of finding a way to memorialize him arose again. So the family decided to mention a scholarship in his obituary, and they were humbled to find that many people donated to it.

“That was really heartwarming, and then we knew we were on the right track,” Jan said. But she still wasn’t sure how to make it happen.

“One thing I knew was that I didn’t want to invest in a fund and operate it myself,” Jan said. “Finally, the kids said, ‘Why don’t you try one of the organizations Dad was a member of ?’”

That led her to the WICPA and a discussion with WICPA President & CEO Tammy Hofstede. After learning about the WICPA Educational Foundation and its scholarship program, Jan was convinced that having the foundation set up a memorial scholarship in the Von Haden name was the right way to go. She’s grateful to have found the perfect way to honor Terry.

“Our main goal was to keep Terry’s memory alive,” she said. “What better way than to help some young, deserving individual who wants to enter the profession he so loved?”

Marcia Tillett-Zinzow is a Wisconsin freelance writer and editor.

Contact her at mtzinzow@icloud.com.

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Jan Von Haden and daughter Tracy Van Andel presented Tammy Hofstede, president & CEO, WICPA, with a $50,000 check to establish the Von Haden Memorial Scholarship on April 26.

“Our gratitude is immeasurable.”

The Educational Foundation’s activities would not be possible without the financial support and volunteer time of WICPA members and others who share in this passion.

“We thank those who have contributed their time, talent and treasure to the foundation and its activities over the years,” said Tammy Hofstede, WICPA president & CEO. “Our gratitude is immeasurable.”

If you are interested in learning more about the WICPA Educational Foundation or wish to make a donation, visit our website (wicpa.org/EFdonate) or contact Tammy at 414-785-0445, ext. 4518, or tammy@wicpa.org.

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memorials Harold John Dolato, CPA, MBA

Daniel E. Hau, CPA

Robert A. Leack, CPA

(1929 – 2018)

(1946 – 2019)

(1938 – 2019)

Harold John Dolato, CPA, passed away Oct. 20, 2018, at the age of 89.

He had been a WICPA member since 1968. Dolato was a U.S. Army veteran who enlisted in 1947 and served in the Army of Occupation in Japan for three years. He graduated from Marquette University with a Bachelor of Science in business administration and an MBA, worked for the Internal Revenue Service for 30 years and then continued as a self-employed CPA for another 32 years.

Dolato is survived by his six children and numerous grandchildren and greatgrandchildren.

Dan Hau, a Franklin resident, passed away Saturday, March 9, surrounded by his family. He was 72.

Hau was founder and president of Hau & Associates, S.C., Milwaukee, and had been a member of the WICPA since 1980. Hau grew up on a dairy farm in the township of Greenbush and graduated from St. Mary Springs High School, Fond du Lac, in 1964. In 1969 he earned a Bachelor of Science degree in accounting and finance from Marquette University, where he became a lifelong member of Alpha Kappa Psi. After graduation, he worked as an accountant for Peat, Marwick, Mitchell (1969–1973) and then for the Milwaukee County Department of Audits (1973–1981), advancing to the position of deputy director. Following that, he founded Hau & Associates and served business and individual clients for almost 35 years. Hau is survived by his wife of 25 years, Ruth; seven children and two stepchildren; 13 grandchildren; three brothers and one sister; and numerous nephews, nieces and friends.

Robert A. Leack, CPA, passed away Saturday, March 9. He was 80.

Leack had been a WICPA member since 1972. He was preceded in death by his wife, Terry, and is survived by five children, three grandchildren, and other relatives and friends.

Thomas J. Duffy, CPA (1942 – 2019)

Tom Duffy, a longtime WICPA member and resident of Whitefish Bay, passed away Friday, Feb. 8. He was 77. Duffy received his undergraduate degree from the University of Illinois at Urbana– Champagne and, after graduation, began his career as a certified public accountant with Ernst & Ernst. He also served in the Wisconsin Army National Guard during this time. Subsequently, he spent more than 40 years as the chief financial officer for the Joseph P. Jansen Construction Co., retiring in 2008. He then put his knowledge and experience to work as a consultant to commercial and industrial investors and developers. Duffy was active in many professional organizations, including the WICPA, the Construction Management Association and the Associated General Contractors. He is survived by his wife of 48 years, Mary; a daughter and son; four grandchildren; and many relatives and friends.

Richard W. Pitzner, CPA, MBA, JD (1946 – 2019)

Dick Pitzner, a long-time WICPA member, passed away Saturday, March 9, at home in Madison. He was 72. Pitzner graduated from Goodrich High School, Fond du Lac, in 1964 and attended the University of Wisconsin–Madison, earning a bachelor’s degree in accounting in 1968, followed by an MBA in 1969. In 1972, he received his law degree from UW–Madison.

Pitzner was a national top scorer on the CPA Exam and received the Elijah Watt Sells award. He had been a WICPA member since 1969. Pitzner was a partner in the Madison-based law firm of Murphy Desmond S.C. for 40 years and of DeWitt LLP, Madison, for four years. He is survived by his wife, Ricki; a son and daughter; two stepsons; four grandchildren; two brothers; and many other relatives and friends.

If you are aware of a member obituary and believe it should be included in Memorials, please send a copy of the obituary or contact Kristen Crump at kristen@wicpa.org.

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IN TOUCH | PRESIDENT & CEO’s MESSAGE “We continue to shape new programs, services and activities to enhance your opportunities and experiences as members.”

Happy New Year!

I

t’s hard to believe we are well into 2019 already.

In our profession, there never seems to be an end to whichever “season” dominates our workload— whether it’s tax season, audit season, month-end, consulting, budgeting and planning season, and the list goes on. We are very fortunate to be in a dynamic, everevolving work environment that keeps us engaged!

In March, the WICPA Board of Directors approved the 2019–2020 WICPA budget. Our long-term goal is to be a professional organization in which every CPA and business professional feels that being a member is essential to their license and career. To achieve this, we are focusing on member outreach, strong member engagement and relationships with other professional organizations; supporting emerging leaders; providing relevant continuing professional development (CPD); enhancing legislative and educator relationships; expanding outreach to students in grade school, high school and college; and continuing to focus on technology.

Since the new fiscal year began May 1, I’d like to share the initiatives that have been developed through strategic planning. We continue to shape new programs, services and activities to enhance YOUR opportunities and experiences as members.

Connecting One of the primary initiatives in my vision as the new president & CEO is to connect with the membership by traveling around the state to visit with members. I want to hear about your experiences in the profession and how the WICPA can be of service to you, your organization and your clients. I will also provide an update of what is happening at the state and national levels regarding the profession and answer questions about the WICPA. During these visits, I will also reach out to newly licensed CPAs who could not attend the New CPA Banquet and deliver their certificates from the State of Wisconsin Accounting Examining Board, courtesy of the

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WICPA, and share the many opportunities the WICPA can provide throughout their careers.

The continued use of brief videos that can be watched at your convenience will bring you timely WICPA, state and national updates and news about the profession to help you stay connected to your profession.

Affinity Partners As we continue to explore benefits and discounts for services relevant to our members, we have added new affinity partners: CPACharge, M3 Insurance and Shakespeare Wealth Management.

Advocacy Continuing to maintain and build relationships with legislators and regulators will ensure a strong presence at the Capitol and keep us current on legislation that impacts Wisconsin CPAs. A WICPA member task force has been formed to be a resource and contact for legislators and the Wisconsin Department of Revenue.

The task force will provide input and guidance on 2017 Wisconsin Act 368 and the pass-through, entity-level tax legislation.

Committees A high school educator committee will be established to provide a setting where high school educators can have a forum to discuss accounting in the classrooms and to engage WICPA members to promote the profession at their schools through career fairs, speaking in the classrooms and providing input on topics for the Educator Accounting Symposium.

As I meet with our committees, we will evaluate each committee’s purpose, mission and activity, as well as the expectations of its members.

Continuing Professional Development The addition of supplementary descriptions for WICPA online seminars offered through the website will provide further information for each program, including course objectives and what you can expect to learn from the course.

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We know time is valuable to our members. To help you maximize your time, our conferences will now be livestreamed, starting with the School District Audit Conference on May 23. All general sessions and the most popular breakout sessions will be livestreamed on the day of the conference.

Individual on-demand session recordings will continue to be available later if you are looking for a specific session.

We will continue to collaborate with the Accounting Examining Board and the Wisconsin Legislature to finalize the rules for CPD for renewal of CPA licenses in December 2021. We have committed to assisting the Department of Safety and Professional Services with FAQs and will communicate CPD requirements for state license renewal to the WICPA membership.

to the WICPA and the accounting profession throughout one’s career distinguishes those members who are honored.

New website features Boards and committees will now have their own private communities in which to communicate committee information and conveniently share information through discussions and document sharing.

Contributors to the WICPA legislative campaign and donors to the WICPA Educational Foundation are now recognized and posted on the website. We also plan to add a section to the site to recognize new members and volunteer members. In addition, new forms will be added to make it easy to volunteer for specific and new service opportunities.

Educational Foundation

Special events and networking

The WICPA Educational Foundation will, for the first time, provide stipends to high school educators who attend the Educator Accounting Symposium. The symposium provides educators with the opportunity to hear and talk to CPAs and gain more knowledge of accounting careers to bring back to their classrooms.

We will continue to hold our two golf outings in Oneida and Sussex this summer, our many networking nights across the state this summer and fall, and our bowling tournament in the spring.

Member Recognition Banquet The Member Recognition Banquet has been expanded to include recognition of 5- and 50-year members. Commitment

The WICPA staff and I are looking forward to the new year and hope to see you at our many events around the state!

Tammy J. Hofstede is president & CEO of the WICPA. Contact her at 262-785-0445 ext. 4518 or tammy@wicpa.org.

2019 WICPA GOLF OUTINGS FRIDAY, AUG. 16 – Thornberry Creek at Oneida, Oneida FRIDAY, SEPT. 20 – Ironwood Golf Course, Sussex SCHEDULE

144 PERSON LIMIT

REGISTRATION INCLUDES

8:30 a.m.

Registration

4-Person Scramble $85 per Golfer $340 for Foursome

18 Holes of Golf With Cart Practice Greens & Driving Range Continental Breakfast & Hot Lunch Beverage Vouchers Hole & Event Prizes Awards Reception & Appetizers

9:00 a.m.

Practice Greens & Driving Range 10:00 a.m.

Shotgun Start

HOLE & EVENT PRIZES $500 Inside the Circle Contest $500+ in Individual Awards $500+ in Team Awards

For more information and to register, visit wicpa.org/GolfOutings.

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WORKPLACE RELATIONSHIPS How to apply emotional intelligence to bosses and employees

E

By Rick Piraino

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motional intelligence is more predictive of leadership success than IQ and technical experience combined. Why? As a leader, it’s no longer about what you can do.

It’s about what you can get others to do, willingly, whether you are present or not.

Understanding and managing your stylistic strengths and weaknesses in any position is

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critical. Learning to adapt to others is a lifelong leadership and personal development curriculum.

Let’s explore four stylistic patterns and how to identify and adapt to them. With a few modifications, you can use this model with anyone, regardless of relationship or position. It offers a structure for making emotional intelligence pragmatic and portable.

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D

I

C

S

People/Relationship Focused

Task/Results Focused

Active/Direct

Passive/Indirect

The DISC model The DISC model is an efficient and practical tool. Its name refers to the four styles: D (Dominant Driver), I (Influencer), S (Steady Amiable) and C (Compliant). It is a four-quadrant model based on two axes. The vertical axis is a continuum relative to communication tendencies, while the horizontal axis is a continuum on workplace orientation.

The vertical axis: communication Is the individual more active or passive when communicating?

Active communicators talk—a lot—without need for prompting. They tend to interrupt and may dominate conversations. They are also risk-takers when communicating.

They don’t think or prepare much before they speak. They are spontaneous and quick on their verbal feet. They keep talking until they find the end point they want to make.

As you might guess, they are often impatient listeners; hence, the interruptions.

Passive communicators listen more than they speak. They think first and analyze their message before they open their mouths. They often need prompting to share their ideas, and they are conservative communicators. They want to be sure their words are either accurate or easy for their listeners to hear.

The horizontal axis: workplace orientation Is the individual more task or relationship oriented?

Task-oriented people want to get to work when they get to work. The day’s work is before them, calling their name. They want to dive in and start swimming. The completion of work is what motivates and satisfies them.

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Relationship oriented people do their best work when they feel part of a team. Knowing their teammates gives them the connections that make the work meaningful and motivating.

Connecting to their teammates at the beginning of the day fuels them to get the work done—happily.

No right or wrong As you can guess, these differences cause stress. And that’s all they are—differences. There is no right or wrong. We often think our way is not only the best way but the way any reasonable person would be. In other words, “Everyone should be like me. If they’re not, they don’t have common sense.”

This is the opposite of emotional intelligence. Expecting everyone to adapt to us leads to conflict, damaged relationships and missed goals. We must raise the bar from the Golden Rule to the “Platinum” one: Treat others the way they want to be treated.

Let’s now explore each of the styles on the DISC, their strengths and weaknesses and how to adapt to each, whether you’re a boss or an employee.

Dominant Drivers People who are task-oriented, active communicators are Dominant Drivers. Their strength is a singular focus on goals.

They are direct, achievement-driven, action-oriented risk takers. Their weakness proceeds from their strength. They are so focused on goals, they may drive over the people they need to achieve them. They may become demanding, abrupt and abrasive when giving direction or feedback. They may be impatient with those who are slower than they are. They often can’t understand why some don’t work at the same level of speed and intensity as they do. In the book “Taking Flight,” they are represented by the eagle.

When interacting with a Driver boss, don’t socialize or be disorganized. Be prepared and get to your point quickly. Provide several options to allow the Driver to make the decision.

When leading a Driver, you must establish yourself as the leader. You must speak Driver to a Driver. If you don’t, your Driver will push against softer statements directing their work.

These will sound like suggestions and will attract a debate.

Be clear and to the point, and let them set the pace for relationship-building conversations.

Persuasive Influencers People who are relationship oriented, active communicators are known as Persuasive Influencers. They are team-oriented and like being a part of and leading teams. They are quick with words, which they use fluently to engage, entertain and persuade others. Where Drivers push, Influencers draw people to what they want. They can be charming, fun and motivating.

They are great on the front end of projects, visioning what

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hasn’t been before. In the book “Taking Flight,” they are represented by the parrot.

Their weakness is an aversion to details that aren’t important to them but needed by others. While good at the conceptual side of a project, they are weak when loose ends must be wrapped up. They can over-rely on their talent and fluency with words and underprepare as a result. They are good at covering their bases after they haven’t covered their bases.

When dealing with an Influencer boss, begin with some personal connections. Don’t jump immediately into business.

Don’t flood them with details or statistics. Keep it simple, and stick to what is essential. Provide details or next steps in writing. Expect to go over details or new processes more than once before a project is locked in.

When leading an Influencer, provide a warm and friendly environment. They are often highly motivated by and respond well to positive recognition. They want to come through for you and be valued for their contributions. Criticism cuts deep with Influencers for the same reason. Asking for their help to understand a situational failure will get you much more information than your upset. Like the boss, don’t flood them with too much information or details. They will need help building systems to support meeting expectations relative to details. Be sure to reinforce them when they do.

Steady Amiables If a person is a relationship oriented, passive communicator, they are known as a Steady Amiable. These people are modest, trustworthy and compassionate. They are very reliable and want to come through for you. They work best at a steady pace when not given an overwhelming amount of work. They genuinely care about people and have an amazing super power: They know how to listen without judgment or advice. In the book “Taking Flight,” they are represented by the dove.

Their weakness is a result of their strength. They care so much about the feelings and needs of others that they tend to be conflict-avoidant. They may be reluctant to give necessary feedback to their boss or direct reports. They tend to be indirect and unclear with expectations or when coaching. As a result, they may be taken advantage of by people in their personal or professional worlds.

When dealing with a Steady boss, begin with time to personally connect. Invest time in building a relationship with them. Use questions to ensure you have learned all their concerns and expectations. Bring suggestions along with problems.

With a Steady direct report, get to know them as a person.

Begin your interactions with some personal connecting. Use questions to draw out their ideas and concerns. Give them

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time to think and prepare their words for conversations.

Don’t flood them with work, and don’t let work issues reflect on them personally.

Compliant Analyticals People who are passive communicators and task oriented are Compliant Analyticals. These people place a high value on being right. They ensure accuracy and completeness in anything they do. They thrive on data analysis and research, and they are highly accurate with their work. They are rule- and processadherent. In the book “Taking Flight,” they are represented by the owl.

Their weakness is an overreliance on facts to sell themselves.

They can be closed-minded with others whom they know haven’t done the research to back their ideas. They can suffer from “paralysis by analysis,” wanting time for perfection that isn’t needed.

When dealing with a Compliant boss, don’t waste time socializing or joking around. Be organized and to the point.

Don’t offer ideas you can’t back up with facts. Follow processes, and only make commitments you can keep in a timely fashion.

With a Compliant employee, ensure expectations are clear so they can succeed in meeting them. Allow the time needed to complete their work with the quality they (and the organization) need. Provide clear processes for them to follow.

When asking for information, give them time to prepare and focus on the level of information you want and the time they have to provide it.

Conclusion Your investment in learning how to read and adapt to others will support your effectiveness and ability to collaborate. It will support strong relationships that will fund your personal and professional goals.

Emotional intelligence makes it easier for others to come through for you. Learning to read and adapt to others is a lifelong process that will help you grow into the leader—and the person—you and others hoped you would become.

Rick Piraino is a speaker, facilitator and coach at Living As A Leader, a Brookfield consulting firm that exists to support the development of leaders at all levels. Contact him at 414-839-9300 or RPiraino@LivingAsALeader.com.

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Introducing your 2019–2020 WICPA Board of Directors The WICPA Board of Directors provides strategic governance in accordance with the WICPA strategic plan, mission and vision. The board ensures the WICPA serves the diverse needs of members, enhances professional competency, promotes the value of members and the profession, advocates on behalf of the profession and builds community among members. The board consists of 15 members. New members began serving after they were elected May 9, 2019, at the Member Recognition Banquet and Annual Business Meeting.

CHAIR Neil R. Keller, CPA/ABV, CVA, partner-in-charge, tax services, Sikich LLP, Brookfield

CHAIR-ELECT Wendi M. Unger, CPA, partner, Baker Tilly, Milwaukee

PAST CHAIR Michael D. Akers, CPA, CBM, CFE, CGMA, CIA, CMA, PhD, Charles T. Horngren Professor of Accounting, Marquette University, Milwaukee

SECRETARY/ TREASURER Katherine L. Hauser, CPA, CGMA, manager of financial reporting, Herzing University, Menomonee Falls

DIRECTOR Jeff Dewane, CPA, CGMA, CMA, MBA, assistant controller, Vinton Construction Company, Manitowoc

DIRECTOR Jon C. Gaines, CPA, CGMA, MBA, vice president of business services and finance, Wisconsin Women’s Business Initiative Corporation, Milwaukee

DIRECTOR Patrick G. Hoffert, CPA, partner, Reilly, Penner & Benton LLP, Milwaukee

DIRECTOR Daniel Holzhauer, CPA, senior vice president & commercial lender, Associated Bank, Milwaukee

DIRECTOR Ruth A. Kallio-Mielke, CPA, director, Deloitte & Touche LLP, Milwaukee

DIRECTOR Wendy A. Peters, CPA, accounting manager, Kohler Credit Union, Kohler

DIRECTOR Steven A. Pullara, CPA, CGMA, tax partner, BDO USA LLP, Middleton

DIRECTOR Matthew J. Schaefer, CPA, CGMA, vice president of regulator risk and internal audit, Bank of Wisconsin Dells, Wisconsin Dells

DIRECTOR Angela C. Thomas, CPA, general accounting section chief, Wisconsin Department of Natural Resources, Madison

AICPA COUNCIL Ryan J. Hanson, CPA, CGMA, financial accounting manager, MGIC Investment Corporation, Milwaukee

AICPA COUNCIL Terri M. Lillesand, CPA, tax principal, CliftonLarsonAllen LLP, Sheboygan

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Ensuring your financial future How leaders (and future leaders) navigate personal financial issues

H

By Kevin Reardon, CFP

ard work and diligence are leadership traits we learn in our youth and which influence our careers dramatically as we progress.

But there’s another trait that sets leaders and future leaders apart, and it’s one that’s not often discussed.

The way one handles their personal finances throughout their career is often the mark of a savvy leader.

Those who plan their financial future early in their career can be more sure to end up right where they want to be when they retire. Following is a career stage-by-stage synopsis of personal financial management and the goals you may want to set now, if you haven’t already—whether you aspire to leadership or not.

Early career We all start on the first rung of the ladder, and the climb has barely begun. Future leaders will navigate their ascent with more purpose and fewer missteps.

Your future goals may include owning a home, paying down student debt, saving for a car purchase or setting aside money for a rainy day. Young future leaders can look past the temptations of consumption and make more responsible decisions, even when the payoff is hard to quantify. The savings rate with these young leaders is frequently above 10 percent, with many exceeding a 20 percent savings rate.

There is an understanding of basic budgeting disciplines, even if you’re not using a spreadsheet to track expenses. You

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understand the important premise of spending less than you make. You’re able to anticipate future expenses before they happen and plan accordingly. Although many of your peers are living the high life and posting outrageous pictures of recent vacations or escapades on their Facebook or Instagram accounts, you aren’t swayed by the “live for today” mantra. You still have plenty of fun and many great experiences; you simply do it within the confines of your budget.

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Mid-career

Late career

This stage of your life frequently includes a spouse and children, building or buying a home and setting down roots in your community. Perhaps you belong to a church or civic group or volunteer your time to a cause you believe in. From a financial perspective, you’re no longer responsible only for yourself. The concept of saving for a rainy day now includes the importance of supporting other people you care about. Missing a paycheck used to mean eating macaroni and cheese, but today it may mean missing a mortgage payment. As a leader, you understand this and save accordingly. Having a chunk of money in the bank isn’t an invitation for more consumption, but rather a security blanket wrapped around your family.

Then one day you wake up and find out your kids hate you (they’re now teenagers and young adults), your hair is thinning and/or turning gray, and the boss is now …. YOU! You are making more money than you ever expected, and although you’ve never shied away from work, you now have more work than you know what to do with. In all likelihood, you are responsible for managing a team of people, and clients and customers look to you for important answers. How did this happen?

Your kids still love you (they are young and cute and don’t know any better). As a result, you’re saving money for the idea they will someday go to college, just as your parents did for you.

It’s hard to imagine these cute little kids driving a car, much less happily living in a 10 ft. x 12 ft. block cell (dorm room), but you know it’s inevitable, and you know the price tag will be large. As a result, you save for that likelihood.

Strangely, you’ve started thinking about the devastating impact to your family if you were disabled or deceased, as unlikely as that may seem given your relative youth and infallibility. You remember the car accident that could have turned out differently or the freak accident that happened to a cousin-in-law twice removed. As a result, you buy life and disability insurance, just in case. And because it’s the right thing to do.

Your 401(k) has become a faithful companion over the years. What started out as a mandate from Uncle Harry has turned into a nice six-figure account. It’s still not large enough to retire on, but you’re impressed with how your contributions, employer match and investment returns have created meaningful appreciation over the years.

Did I mention your career has magically progressed? That hard work and diligence “thing” seemed appealing to employers, and they have given you more responsibility and rewarded you with more compensation. Life is good.

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From a financial perspective, you’re thankful you saved for college when the kids were young because, wow, is that expensive.

You’re shelling out more money for college than the cost of your first house, and without that wonderful 529 plan, you would have gone bankrupt. Your 401(k) is so large you’re afraid to tell your friends and family, and a good year in the stock market produces more money than you make with your job. You don’t have time to sit around and count your money because you’re so busy trying to balance your career, family and extracurricular activities.

Given the conservative nature of being a CPA, you’re on the verge of writing your last mortgage check. This will free up significant monthly income and further add to your savings.

“Holy cow, when did I become my parents?” you may be thinking.

Speaking of which, it’s not uncommon at this stage of life to lose your parents. This is a sad event none of us look forward to.

However, it may mean you’ll be inheriting assets. When coupled with your other savings, your “nest egg” is now bigger than ever, and you’re not sure what to do with it all.

On Balance

May | June 2019

23

• How does Medicare work, and how do I sign up?

• How do I convert my assets into an income stream in retirement?

• What exactly is an estate plan, and how do I get one?

• What do I do with that life insurance policy I bought when the kids were young?

• Do I really need long-term care insurance?

• How do I manage my investments once I’ve retired?

• How do I best minimize my taxes in retirement?

The finish line You’ve fought the good fight, but you’re not done yet.

You’re at the finish line of your career, but the wonderful world of retirement awaits. You have serious questions that need to be answered: • Can I really afford to retire?

• When should I file for Social Security?

CONFIDENCE.

The leadership traits of hard work, diligence and solid financial management have served you well and prepared you for this “golden” phase of your life. You’ll use the disciplines you’ve spent a lifetime developing to answer all the above questions.

And because you’re a leader, you’ll continue making good decisions and—more importantly—making a difference.

Kevin Reardon, CFP, is owner and president of Shakespeare Wealth Management Inc., Pewaukee. He is a Fee-Only® NAPFA Registered Financial Advisor. Contact him at 262-814-1600 or Kevin@ShakespeareWM.com.

PLANNING FOR LIFE. PROVIDING PEACE OF MIND.

Your Top Clients Need a Fiduciary Advisor.

Have confidence in knowing that together we can best help your clients through life's key transition points, including retirement, divorce, business sale, and death.

Call 262-814-1600 to learn more. info@ShakespeareWM.com

24

On Balance

May | June 2019

wicpa.org

Terri S. Boxer, J.D.

Robert E. Dallman, J.D., LL.M.

Thomas P. Guszkowski, J.D., LL.M.

Katie Hanley, J.D.

Megan K. Heinzelman, J.D., LL.M.

Jeffrey L. Hesson, J.D., CPA

Courtney A. Hollander, J.D.

Megan L.W. Jerabek, J.D.

Thomas J. Kammerait, J.D., CPA

Benjamin D. LaFrombois, J.D.

Marcus S. Loden, J.D., LL.M.

Thomas A. Myers, J.D.

Randy S. Nelson, J.D., CPA

Timothy A. Nettesheim, J.D., LL.M.

Katelyn A. Pellitteri, J.D.

Thomas J. Phillips, J.D., LL.M.

Gerald H. Rammer, J.D.

David J. Roettgers, J.D., CPA

John A. Sikora, J.D.

Steven M. Szymanski, J.D., MBA

Robert B. Teuber, J.D.

Daniel S. Welytok, J.D., LL.M.

Peter J. White, J.D., CPA

Tax Lawyers for Taxing Times. von Briesen’s team of experienced tax lawyers, many of whom have advanced designations, help businesses and individuals navigate the increasingly complex tax laws.

The bottom line? We get results.

To learn more about our Tax Law Section and the services we offer, please contact Robert Mathers, Tax Section Chair, at rmathers@vonbriesen.com.

Robert A. Mathers, J.D., CPA, Section Chair

vonbriesen.com/tax wicpa.org

On Balance

May | June 2019

25

Retail Industry | Technology Research

How to Choose the Right Point-of-Sale Software A WICPA member and retail business owner shares her experience.

M

y husband and I own a bar and grill, and when we were just getting started with our retail business, we chose a lowcost point-of-sale (POS) platform. It was a nice little workhorse for the first year, but when our operation began to outpace the speed of its functions,

By Heather we knew it was time to upgrade to Martinez, CPA something that would keep up with both our customers’ demands and our employees’ fast-moving work tempo—but didn’t break the bank.

As every retailer knows, slow or cumbersome payment processing can be frustrating and disruptive to the flow of business.

When your POS system doesn’t pair up well with the way you operate and serve customers, it can really throw a wrench into your operations. The optimal POS platform, however, can actually enhance payment functions and lead to sharp improvements in service, which can directly drive up revenue.

I work with a lot of retailers in situations that are similar to ours, and though there’s no one-size-fits-all POS solution for the vast variety of retail operations out there, our experience selecting the right system could help other retailers make a better-informed decision for their own businesses.

26

On Balance

May | June 2019

We ultimately found a cloud-based POS platform with credit pre-authorization and tab management features that were just what we needed. This has resulted in greater efficiency, a heightened customer experience and increased sales.

Here’s how we arrived at our purchase decision.

First, we did our homework We started by doing some investigating. There are so many platforms on the market that it was difficult to know where to begin. So, I went to colleagues and restaurant peers for reviews and recommendations. I also consulted our current software vendor for some insights as well as looked through trade magazines for leads in the articles and ads. The internet, of course, served up a wealth of information on POS systems.

But some of the best intel I got was from checking out our competitors’ establishments to watch firsthand what worked well and what looked problematic.

From this research, we were able to narrow down the options to those that suited our specific needs.

Next, we touched and felt You really have to experience firsthand how different POS systems work to judge how effective they would be in your business. I scheduled demos with our top three choices and set aside the time needed to analyze and explore these options.

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I created a spreadsheet of our top concerns and questions and filled in the answers as I received them. Ultimately, I took a lot of notes as I watched the demos to see what they had to offer.

Finally, we compared and contrasted Once I completed the demos, I had a robust spreadsheet we could review to see how the features and providers of each POS platform stacked up against each other side by side. The key factors we considered were: • Upfront and ongoing costs, including credit card processing fees • Top features needed • Integration with our accounting software • Software platform and hardware options • Migration, setup and training options • Ongoing support and warranty With these items in mind, it was easy to compare and contrast the options on the table. The software solution that was right for us had our most-desired features (quick and easy software with credit card pre-authorization and tab management) and stayed within our budget of $200 or less per month. The platform we chose operates on an android operating system and is a hardwired device, which offered great versatility and reliability. The migration, setup and training could be done remotely and on our own time.

The package comes with 24-hour support and a three-year warranty, which is the life of our equipment lease.

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“The right POS software has made a big difference in business efficiency and customer payment security.”

The result: a more efficient, secure system The right POS software has made a big difference in business efficiency and customer payment security. We can now close out a tab much faster, and we don’t have to hold onto customers’ credit cards. That means we don’t worry about the risks of retaining those cards (especially when they are left behind after a customer forgets and walks out), and customers don’t feel the unease of having someone else in possession of their cards.

Taking the time to research various POS platforms, try them out in person, ask a ton of questions and take copious notes helped us to make a truly informed purchase decision that has improved our business in many areas.

Heather Martinez, CPA, is a BizOps controller with CliftonLarsonAllen, Racine, and co-owner of The Waves Bar & Grill in Kenosha. Contact her at 262-898-6556 or heather.martinez@claconnect.com.

On Balance

May | June 2019

27

Technology | Automating the Audit

By Thomas Klockner, CPA

I

n the audit profession, we have reached the next milestone in the transition from manually driven activities to processes that are increasingly automated. Most of the traditional tools and techniques continue to experience massive change, as digital tools and, more specifically, intelligent automation take on what has traditionally been handled through manual processes.

In this digital world, where information is ubiquitous and data volumes are exploding, auditors are engaging intelligent automation, cognitive technology and other

28

On Balance

May | June 2019

tools to help make sense of it all and fulfill our important responsibilities to the investing public.

The practice is widespread. According to the KPMG 2018 U.S. CEO Outlook,49 percent of CEOs have begun limited implementation of artificial intelligence systems within their companies. Additionally, annual global spending on cognitive systems by 2019 is expected to be $31 billion, a 55-percent cumulative annual growth rate over a five-year period, according to the IDC Worldwide Spending on Cognitive Systems Spending Guide.

wicpa.org

Cognitive technologies enable analysis of large volumes of data and allow auditors to more efficiently dig deeper into identified anomalies and enhance their professional judgment and decision making. Additionally, the ability to recognize and isolate relevant information regardless of source format, and evaluate the extracted data, has proven helpful to auditors in reaching conclusions. Technology can help enable applications in complex audit areas, such as revenue recognition and evaluation of a bank’s portfolio of loans.

ask more precise questions in areas of greater risk, including areas of judgment.

Bank loan portfolios Today, audit procedures frequently rely on a small representative sample of a bank’s loan portfolio with significant manual input to extract facts from the credit file, understand those facts and interpret them against a client-specific loan-grading scale. In the future, technology tools could ingest all required documents to evaluate a commercial loan portfolio. During the training of an intelligent tool, key elements impacting the loan risk rating are identified, and a recommendation of risk grade can be generated. The explosion of data in business, along with the increased ability of technology to analyze the information, has fostered unprecedented advances in digital processing power and the capacity to support decision making across multiple activities and operations.

Digitizing the audit can assist in delivering sustained high-quality audits, provide richer and more detailed audit evidence, enhance transparency and consistency of audit procedures, and provide management with a more detailed view into the company and its risks, controls and operating environment.

TABLE 1 Extract facts from credit file and other sources

Understand facts

Loan Amount: $10M

Payment History: Weak

Purpose re-finance

PSOR: Strong

Collateral: A properties

Collateral: Strong

Appraised Value: $100M

Guarantor: Weak

Assign weights to facts

Weighting scale

Tackling revenue recognition The revenue recognition process of large organizations often involves hundreds, if not thousands, of contractual relationships. Errors in revenue recognition can have severe consequences for regulatory, tax and other compliance matters. Cognitive technologies can use revenue contracts, invoices, trial balances and other data to assist in assessing the completeness and accuracy of the client’s ledger.

These technologies can augment what an auditor considers and provide information quickly and consistently. What auditors learn from the additional details and analysis can enhance their ability to apply skepticism, allowing them to

wicpa.org

Translate into a loan rating

Auditor and client scales

Auditor reviews potential exceptions

Loan #

KPMG Client rating rating

10

AA

1

B

B

9

A

2

C

B

8

A

3

AA

AA

7

Evidence

To succeed in the face of uncommon opportunities and challenges created by rapid technological advancements affecting financial statements, it is imperative that accounting professionals have an unquenchable thirst for continuous learning and strong critical thinking, as well as analytical, data science and IT skills, to complement their financial and business acumen.

Thomas Klockner, CPA, is a partner in KPMG’s audit practice, where he primarily serves clients in the life sciences industry. He can be reached at tklockner@kpmg.com.

Reprinted with permission of the New Jersey Society of CPAs.

On Balance

May | June 2019

29

Tax | State Tax Law

ENTITY-LEVEL STATE TAX DEDUCTION LIMITATIONS

I

By David J. Kamps, CPA

30

On Balance

n December 2018 the State of Wisconsin passed Act 368 allowing S corporations (and partnerships, starting in 2019) to pay income taxes in lieu of passing the income to the shareholder’s state tax return (see “New pass-through entity is a tax-saving opportunity” in the March/April 2019 issue of On Balance for more in-depth coverage). The obvious purpose is to avoid the $10,000 state and local tax (SALT) limitation on the Form 1040 Schedule A.

May | June 2019

Unfortunately, it comes with some strings attached that will limit its usefulness.

One string has to do with the reduced 199A deduction created by the Tax Cut and Jobs Act. Under this Act, a business deduction of 20 percent may be available against qualified business income (QBI). Now, if state taxes are paid at the entity level, the QBI will be reduced by the state tax.

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Though relatively few will be itemizing for 2018 through 2025, entity-level payments would allow S corporation shareholders (and partners in 2019) to reap a SALT deduction beyond the $10,000 limit. It requires the S corporation (or partnership, starting in 2019) to pay tax at the C corporation rate of 7.9 percent (another string). For some, this is a .25 percent increase (7.9 percent less the 7.65 percent top tax bracket for individuals). However, for most, it is a 1.63 percent tax increase (7.9 percent less 6.27 percent, the tax bracket for those with taxable income from $29,961 to $329,810 (married filing jointly) and $22,471 to $247,350 (single and head of household)).

At first blush, this election looked too good to be true.

But, just as with most tax provisions, not everyone is a winner. Additional strings come into play for out-of-state shareholders and for entities with shareholders in different tax brackets, Wisconsin pass-through credits or limited cash. There are so many factors affecting the overall benefit, you may need to run the individual returns both ways to see where the dust settles.

1

Federal Tax Brackets:

2

QBI before state tax

4

Adjusted QBI

92,100

92,100

92,100

92,100

92,100

92,100

Adjusted 199a Deduction R4

18,420

18,420

18,420

18,420

18,420

18,420

3 5 6 7 8 9

The actual tax savings will be higher if the company’s 199A deduction is limited or phased out due to QBI restrictions for specified service trades or businesses or for income limitations.

State Tax

7.90%

199a before state tax

20.00%

R2

12%

SALT tax benefit

10 Additional state tax

20.00%

R1 x R7 R1 x R3 R2 x

1.63% 0.25%

11 Net SALT tax benefit 12 Net Savings

R11 - R8

In the table above, using QBI of $100,000, you can see that the entity-level state tax payment actually increases taxes for those in the lower tax brackets, while the higher tax brackets benefit. The assumption used is that those in a 12 to 24 percent federal tax bracket remain in the 6.27 percent state tax bracket, while those in the 32 to 37 percent federal tax bracket find themselves in the 7.65 percent state tax bracket.

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24%

32%

35%

37%

$100,000 $100,000 $100,000 $100,000 $100,000 $100,000

Reduced 199a QBI tax benefit lost

22%

7,900

20,000 1,580 190

7,900

20,000 1,580

348

948

1,738

1,630 (682)

(872)

1,630 108

(240)

7,900

20,000 1,580

379

1,896

7,900

20,000 1,580

506

7,900

20,000 1,580

553

2,528

2,765

1,630 266

(113)

250

2,278

1,772

250

2,515

1,962

7,900

20,000 1,580 585

2,923 250

2,673

2,088

When I first read about the new Act, I thought I would have to recommend this to most of my clients, but now I have narrowed it down to a manageable number. For more information, visit the Wisconsin Department of Revenue’s FAQ pages at https://www.revenue.wi.gov/Pages/FAQS/ise-passthroughtaxscorp.aspx.

David J. Kamps, CPA, owns and operates a local firm in Little Chute.

He has over 35 years of experience serving small business tax and accounting needs. He can be reached at david@kampscpa.com.

On Balance

May | June 2019

31

SPECTRUM

SM

INVESTMENT ADVISORS

Retirement Plan Investment Seminar 14th Annual Seminar

2nd Annual Seminar

Ingleside Hotel, Pewaukee, WI

Northern Location!

Green Bay, WI

S�����

F���

(formerly the Country Springs Hotel)

(more information to follow from the WICPA)

Wednesday, June 19, 2019

October 2019

8:15 am - 12:15 pm Program 7:45 am Registration

Morning 1/2 day Program

Â

Â?

Â?

Â?

Co-sponsored by

Spectrum Investment Advisors and

The Wisconsin Institute of CPAs -More Information & Registration to Follow-

From the WICPA

Colors Simplify InvestingÂŽ spectruminvestor.com sia@spectruminvestor.com 800-242-4735

On Balance | June 2019 wicpa.org 32 Investment advice offered throughMay Spectrum Investment Advisors, Inc., a registered investment adviser. Registration with the SEC does not imply a certain level of skill or training. Spectrum Investment Advisors and the Wisconsin Institute of CPAs are not affiliated.

kudos

Kari Apel, CPA

Ashley Hein, CPA

Mike Kuhn, CPA

Tim Mattke, CPA

Emily McGuire, CPA

Eric Neuman, CPA

Joan Phillips, CPA

Amy Trottier, CPA

Jesse Veeser, CPA

Tammy A. Wishowski, CPA

Kari Apel, CPA, CEO of Apel Associates, Johnson Creek, was interviewed for a Jan. 31 Valders Journal article titled “Farm accountants face tough changes.”

Tim Mattke, CPA, executive vice president and CFO for MGIC Investment Corp., has been elected chairman of the board of directors for Goodwill Industries of Southeastern Wisconsin.

Nicole Best, CPA, senior vice president, CFO and chief administrative officer for Heartland Advisors, was the subject of an Executive Profile in the Feb. 1 edition of the Milwaukee Business Journal.

Emily McGuire, CPA, an audit associate at Hawkins Ash CPAs, has received her CPA designation from the Wisconsin Department of Regulations & Licensing. The St. Norbert College graduate joined the firm in 2016.

Vicki Buening, CPA, CVA, MST, a partner at Reilly, Penner & Benton, Madison, delivered a free tax-planning strategies program at Stoughton Hospital in April.

Eric Neuman, CPA, a senior manager at Chortek LLP, was recently named by the Waukesha County Business Alliance as one of eight Emerging Leaders of Waukesha County. The awards celebrate young professionals for their community service, leadership traits, being a team player, professional achievement, and personal and professional development.

Tanner Hayes, CPA, an audit associate at Hawkins Ash CPAs, has received his CPA designation from the Wisconsin Department of Regulations & Licensing.

The UW–La Crosse graduate joined the firm in 2017.

Ashley Hein, CPA, director of finance for Exact Sciences Corp., was selected by In Business magazine as a member of 40 Under 40 – 2019 Class. The annual program honors 40 of the most successful and civic-minded young professionals under the age of 40 in the Greater Madison area.

Tammy Hofstede, WICPA president & CEO, was appointed by Gov. Tony Evers to the Governor’s Council on Financial Literacy.

Dan Kempken, CPA, was promoted to senior vice president of corporate development and strategy for A.O. Smith Corp. as of May 1.

Justin Kudick, CPA, an audit associate at Hawkins Ash CPAs, has received his CPA designation from the Wisconsin Department of Regulations & Licensing.

The UW–Whitewater graduate joined the firm in 2015.

Mike Kuhn, CPA, shareholder at Vrakas CPAs & Advisors, Brookfield, was interviewed for a March 4 Biz Times article titled “New lease accounting standard will hit almost every balance sheet.”

Want your

Joan Phillips, CPA, a partner at Deloitte, and Susan Strautmann, CPA, MBA, ABA, Mid-State Technical College, were appointed by Gov. Tony Evers to the Wisconsin Accounting Examining Board.

Barbara Poppy, CPA, sole proprietor in Wisconsin Dells, in March hosted 12 Fennimore High School accounting students and their teacher, a 2018 recipient of a WICPA Educational Foundation Career Awareness Grant. Poppy shared what she does in her practice and all the great reasons the students should become CPAs. Amy Trottier, CPA, an accountant with Andrea & Orendorff LLP, Kenosha, was interviewed for a Feb. 10 Kenosha News article titled “Local tax preparers weigh in on new laws, shutdown.”

Jesse Veeser, CPA, an audit associate at Hawkins Ash CPAs, has received his CPA designation from the State of Wisconsin Department of Regulations & Licensing. The UW–Green Bay graduate joined the firm in 2015.

Tammy A. Wishowski, CPA, has been named a shareholder

by Scribner, Cohen and Co. She has been with the firm for more than 20 years.

Brian Zaletel, CPA, has been hired by Catalpa Health, Appleton, as chief financial officer.

new job, promotion or award mentioned in Kudos?

H Email your announcement and photo in JPG format to kristen@wicpa.org. H

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On Balance

May | June 2019

33

Human Resources | Talent Recruitment

What Accounting Talent Wants in 2019

By Andrew Carr

34

On Balance

May | June 2019

wicpa.org

W

ith the accounting and finance unemployment rate at just 2 percent in 2018, even lower than the national average of 3.9 percent, companies are increasingly challenged to fulfill their hiring needs. Hiring is projected to increase 10 percent for accountants and auditors by the year 2022, so the supply/demand imbalance is likely to continue to be an issue over the next several years.

Because of this, employers are charged with creating a scalable and flexible staffing strategy that attracts job seekers (and switchers) while retaining top performers.

Attracting today’s accountants To attract quality candidates, companies should ensure they’re positioning themselves competitively and providing what today’s accountants want: a clear job description, a positive candidate experience, market-rate compensation and work-life balance.

1. Take a fresh look at your job descriptions: Make sure you’re not screening out qualified applicants with broad requirements that might not be completely necessary.

Determine where you draw the line between your “must-haves” and your “nice-to-haves.”

2. Present a compelling EVP: The Talent Board’s North American Candidate Experience Research Report found that job candidates want to hear an attractive employee value proposition (EVP) from a hiring company, including: • A clear understanding of the company culture • Insight into the employee experience • A sense of connection with the employer brand A positive brand that accurately represents and promotes your company culture and EVP can help increase your candidate pool and keep your staffing pipeline full.

3. Ensure market-rate wages: “Wage growth averaged 2.8 percent in 2018 compared with a 2.6 percent average in 2017 and is consistent with a tightening labor market,” according to data from ADP Research. With such a tight talent pool, candidates know they don’t have to settle for salary offers that aren’t competitive for the skills requested.

4. It’s not just a numbers game: Mercer’s 2018 Global Talent Trends study found that 51 percent of employees wish their company offered more flexible work options. See if you can accommodate policies that promote work-life balance, such as work-from-home options and nontraditional schedules.

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“Hiring is projected to increase 10 percent for accountants and auditors by the year 2022.”

In this talent market, you have to act quickly. If it takes you two weeks to interview a promising candidate, you could lose out to a company that’s streamlined its process down to three or five days.

How to keep high-performing staff Retaining top talent can go a long way toward a company’s success. Ensuring that employees feel productive, invested and appreciated will make them more likely to say no to other job offers and choose to stay on your team.

Gallup found that employees leave for a variety of reasons, including better pay and benefits. But other issues stem from company culture and can be addressed without hard costs. How can your organization mitigate those risks and retain top talent?

• Performance feedback: Commit to a continuous feedback process that includes a well-thought-out annual performance review to focus on helping employees reach their goals. Employees who are satisfied with the performance feedback process are more engaged and committed to the organization—and more likely to stay.

• Communicate expectations: What does good performance look like? Especially if a job has changed substantially since the initial hire or latest promotion, make sure you’re being clear about the position’s requirements. As priorities, roles and circumstances change, great managers continually assess and fine-tune expectations.

• Connect the dots: Help employees understand how their work aligns with the work of their team members, business area and organization. Having a sense of purpose can boost employee motivation, productivity and overall job satisfaction.

• Fulfill a need: Most job switchers looking for a job want something better than what they currently have. They want to be challenged, earn more and do what they love. Create opportunities for employees to grow within your organization.

Flexible workforce options Especially in the accounting realm, having positions open for too long causes internal stress. With often immovable deadlines,

On Balance

May | June 2019

35

Human Resources | Talent Recruitment

other key players will have to do the work, whether they earn additional pay or not. Companies then risk also losing those employees, as their quality of life and work-life balance have been compromised. Still, you don’t want to hire just anyone for a permanent position; you want candidates that you see as a good fit in the long term—and that may take as long as six months.

A relationship with a trusted recruitment partner can do more than just fill open positions; it can provide you with a range of contingent solutions to help get the work done during a planned or unplanned absence. You can secure a contract accountant to cover the workload so it doesn’t back up or spill over onto other employees. Or you can elevate a high-achieving internal employee, then backfill the newly vacated job with a larger talent pool.

Contingent talent can also help when you need niche skill sets working with technology (such as enterprise resource planning systems) or for short- to medium-term projects like these:

• Integration or backlog work due to merger and acquisition transactions • Implementation of new accounting guidance (such as revenue recognition, lease accounting and more) • Build-out of a shared services function for a company • Budgeting or forecasting projects

Conclusion Employers need to be extremely resourceful and proactive to acquire and retain the best accountants in this talent landscape and should leverage partnerships wherever possible. A recruitment firm can help you reach passive as well as active job seekers and build relationships that deepen your long-term pipeline.

Andrew Carr is an account manager at Aston Carter Staffing and Services, Wauwatosa. Contact him at 414-607-2011 or acarr@astoncarter.com.

When small businesses thrive, we all win.

We’re proud to be named the #1 SBA lender in the region1. But what really makes us happy is helping people start and grow their businesses in Wisconsin. Because we know when small businesses thrive, our communities thrive. So let’s get to work, together.

Visit huntington.com/WisconsinSBA to find a specialist.

SBA loans subject to SBA eligibility. Huntington is the #1 SBA 7(a) lender in the number of loans in the region made up of Illinois, Indiana, Kentucky, Ohio, Michigan, West Virginia, Western Pennsylvania and Wisconsin. Source: U.S. Small Business Administration (SBA) from October 1, 2008 to September 30, 2018.

1

Member FDIC. ⬢®, Huntington® and ⬢ Huntington® are federally registered service marks of Huntington Bancshares Incorporated. WelcomeSM is a service mark of Huntington Bancshares Incorporated. ©2019 Huntington Bancshares Incorporated.Bancshares Incorporated.

36

On Balance

May | June 2019

wicpa.org

Everything you care about is in this house.

Things your family just can’ t afford to lose.

We can help you protect it with a Home and Highway® policy from West Bend.

You’ll benefit from the convenience of one policy, one bill, one deductible, and one agency. And because you’re a member of the WICPA, you could also receive a discount on your annual premium.

To find out what else the Home and Highway has to offer, contact this Official Supplier of the Silver Lining.

Professional Insurance Programs at (414) 277-0154 or info@profinsprog.com or to find an agency near you, visit thesilverlining.com.

Celebrating 125 years of providing the Silver Lining to our valued customers.

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On Balance

May | June 2019

37

Human Resources | Branding

Want better hires?

Start with your personal brand

I

By Carver Smith, CPA

f you’re a recruiting manager, does your brand matter?

Of course it does. While definitions of personal brand vary, at its core, the phrase refers to the experience people have with you.

In the world of Instagram, Snapchat and Facebook, perception is more important than ever to creating value for you and your business.

Just as products and companies have a brand, you also have a brand—a personal brand that impacts how people work with you. As a hiring manager, your personal brand can significantly impact the recruiting process and plays a key role in whether prospective talent chooses to work for you.

Styx, a rock band that became famous in the ‘70s and ‘80s, had a hit song called “The Grand Illusion,” which features the lyrics: But don’t be fooled by the radio The TV or the magazines They show you photographs of how your life should be But they’re just someone else’s fantasy… …Just remember that it’s a grand illusion Image is everything, particularly in the social media age, but people eventually see through the illusion. What really matters is their experience with you.

During your hiring process, your HR department, website, Glassdoor reviews and other touch points impact your ability to hire. But in the end, the candidates’ interactions with you before, during and after the process formally starts are key.

That’s where brand comes in.

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On Balance

May | June 2019

In a recent Baker Tilly Search & Staffing poll, this question was asked: “When you last accepted a new position, what factor most influenced your decision?” Nearly 50 percent of respondents said the boss was key to their decision. Put another way, the boss’s brand—their ability to create a positive experience with the candidate—was the critical element in making the decision. By comparison, 24 percent said the company’s reputation was the key factor, and only 19 percent cited compensation and benefits.

What can you do to impact your personal brand as a hiring manager? Simply put, be a good boss and co-worker. Honoring commitments, being transparent and setting good examples are not as common as they should be, and they make all the difference in burnishing your brand for prospective hires.

Unless you inherited a team, it starts with the hiring process.

It is crucial to be in the moment during the interview process and demonstrate interest in the candidate. When you have an interview opportunity, take these steps: • Prepare for the interview – Don’t just grab the candidate’s résumé on the way in and “wing it.” Think about what you will ask. Try to find common ground with the hire—such as school or interests—by reviewing their résumé or their social media posts.

• Eliminate distractions – It sounds obvious, but don’t check your phone, allow for drop-in meetings or respond to instant messages in an interview. This person is a part of your future and probably took time off work to be there.

Anything less than your full attention sends the signal to the person that they are not important and is disrespectful of their time.

• Be candid – You need to be honest about the challenges of the role and the company, as well as why you think this

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person could help you meet those challenges and create a positive impact for your organization. This is your chance to create excitement in the role while setting clear expectations against which performance can later be measured.

• Follow up – When a candidate is promising, demonstrate your interest in them by sending a thank-you letter after the interview. Also, it’s important to proactively update them about the hiring process.

• Participate in the offer and follow-up process – If possible, make the offer yourself. If HR insists or is more comfortable with the details, let them deliver the formal offer, but you should still follow up with a call or offer to meet the candidate for coffee or lunch to show your interest and recruit the person to your team. Remember: You are still shaping your brand with the new hire, so continue to create positive impressions. Ultimately, this person will be an extension of your brand, and as the survey demonstrated, you are the main reason they will join your organization!

Candidate interviewing is an important process for your success, your company’s future and your potential new hire’s career. It deserves your commitment and undivided attention. It’s not just an appointment on your calendar to “get through”!

Finally, be aware of your online presence. Just as employers review the social media of a candidate, prospective employees

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“Your personal brand matters for the hiring process. If you want people to see you as a great manager, give them a great hiring experience.” review the social media of managers. Candidates sometimes withdraw from a great opportunity after they discover less than tactful comments by the hiring manager on Twitter or other platforms. It’s one thing to have strong convictions; it’s another thing to be harsh, vulgar or void of factual support in making your point. The way you handle differences of opinion on social media shows people how you may handle differences of opinion at work.

The bottom line is this: Your personal brand matters for the hiring process. If you want people to see you as a great manager, give them a great hiring experience.

Carver Smith, CPA, is a partner with Baker Tilly Search & Staffing LLC, a wholly owned subsidiary of Baker Tilly Virchow Krause LLP. Contact him at 414-777-5322 or carver.smith@bakertilly.com.

On Balance

May | June 2019

39

7

PROVEN

REASONS TO RENEW

NETWORKING: Join nearly 7,300 of your peers at professional and social events.

MEMBERSHIP

DISCOUNTED CPD EVENTS:

01

The WICPA is the premier association for accounting and

business professionals in Wisconsin. Whether you’re looking to grow professionally, bring in new business, increase your expertise and leadership or protect the business you’ve helped build, the WICPA serves as your go-to resource to help you succeed and stay connected to the profession.

02

Receive discounts on conferences, seminars, breakfast programs, webinars and on-demand programs.

Renew today at wicpa.org/renew LEADERSHIP DEVELOPMENT: ONLINE RESOURCES: Connect with members through the Membership Directory, find and post jobs with the Career Center, and be listed as a resource to the public with the Find a CPA Directory.

03

07 06

CREDIBILITY:

Brand yourself as a WICPA member to demonstrate your ethical standards and commitment to the profession.

500+ 93% RENEW MEMBERSHIP MEMBER VOLUNTEERS

MEDIA 7,000+ SOCIAL FOLLOWERS 40

On Balance

OVER 2,500

WI COMPANIES, FIRMS AND ORGANIZATIONS REPRESENTED

May | June 2019

Enhance technical and soft skills with volunteer opportunities that help advance the profession, build the CPA pipeline and give back to the community.

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Save up to 40% on products and services through our select Affinity Partners and Member Benefit Providers.

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Keep current on legislative and financial regulations, technical topics and industry trends with our award-winning publications and e-news.

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Don’t miss this chance to connect with your colleagues and other business professionals!

WICPA Networking Nights offer you the opportunity to build your network with a group of peers in a relaxed setting.

Night g n i k r two tunity r e o N p h p o ac as an ate, e t s s e v e r h e and s hout t g y t u i o v i r t h c Held t rent a e f way. f i d w e a n a es ize in featur l a i c o u to s for yo These are also great venues for strengthening relationships

UPCOMING NETWORKING NIGHTS: June 11 Cave of the Mounds, Blue Mounds June 18 Appleton Beer Factory, Appleton June 20 4 Sisters Wine Bar & Tapas Restaurant, La Crosse July 16 ABV Social, Wauwatosa Sept. 10 Good City Brewing, Milwaukee

with clients, co-workers and business associates‌So invite them to join you!

Oct. 8 Stillmank Brewing Company, Green Bay Oct. 22 Capital Brewery, Middleton Oct. 29 Leinie Lodge, Chippewa Falls Nov. 12 Great Dane Pub & Brewing Co., Wausau

For more information and to register, visit wicpa.org/NetworkingNights.

Networking Nights are held 5:30 - 8:30 p.m.

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