On Balance Magazine - Sept/Oct 2022 by WICPA

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From the Indiana CPA Society

The Great Disconnect

Gone are the days of accountants reporting only on historical financial information.

20 Employers using artificial intelligence in decision making

By Marcia Tillett-Zinzow

Innovative techniques can help accounting students learn communication and critical thinking skills they’ll need in the workplace.

Many recent tax law changes underscore the importance of a cost segregation study.

By Jessica E. McClain, CPA, CISA, PMP, CITP, CGFM

30 TAXATION

By Beth Colson, CPA, and Abby Ashman

By Justin Greene, CPA

8 Shaping the next generation

By Mark Vorkapich, ASA

By Cory Ng, CPA, DBA, CGMA and Brian Trout, CPA, DBA, CMA

38 PROFESSIONAL DEVELOPMENT

Continuing education is vital to your professional development

24 LEADERSHIP

12 Cryptocurrency: The future of nonprofit generosity

16 Base skills for CPAs aren’t always accounting oriented

Don’t think conversations around diversity are just for the big organizations because that attitude can cost you.

Cost segregation studies and bonus depreciation

Companies want employees back in the office full time now — but that’s not necessarily what they want.

1On Balance September | October 2022wicpa.org September | October 2022 Vol. 18 No. 4 A publication of the Wisconsin Institute of CPAs | wicpa.org

Cryptocurrency philanthropy is fast becoming a compelling segment of the digital giving space.

Features Columns

Employers are increasingly using AI in the hiring process. It’s efficient, but do the risks outweigh the benefits?

34 HUMAN RESOURCES

5 critical first steps to launch your DEI initiatives

Dorothy Conduah, CPA, MBA, CGMA, didn’t think teaching was in her DNA, but she knew accounting was. Lucky for her students at Madison College, she was wrong.

By Jill Pedigo Hall, JD

Design & Layout

Kyle R. Stephens, CPA Stacy A. Stinson, CPA

Lucien A. Beaudry, CPA, JD

Past Chair

Donna R. Scaffidi, CPA

Brett Stallman

Ruth A. Kallio-Mielke, CPA

Advertising Sue Daniels Editor

Neil R. Keller, CPA/ABV, CVA

Directors

Marcia Tillett-Zinzow Printing Delzer

On Balance September | October 20222 wicpa.org Join us online!

Angela C. Thomas, CPA Secretary/Treasurer

2022-2023WICPAOFFICERS/BOARD MEMBERS INSIDE STAFF

John R. Heindel, CPA

Christopher M. Cholka, CPA, CGMA

Chair

President & CEO

Matthew J. Schaefer, CPA, CGMA

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: comments@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 2022 On Balance

AICPA Council

Steven A. Pullara, CPA, CGMA Chair-elect

Tammy J. Hofstede

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Steve Pullara, CPA, is a tax partner with BDO USA LLP in their Madison office. He leads the Wisconsin real estate and construction practice groups. Pullara also teaches financial management through UW–Madison’s School of Business, Small Business Development Center. Contact him at 608-828-3156 or spullara@bdo.com.

Here are a few of the issues on which the WICPA represents our profession:

Shaping and Protecting Our Profession Through Advocacy

“The reality is that the WICPA and each of us individually need to be involved in political advocacy to continue leading, shaping and controlling our profession’s destiny.”

On Balance September | October 20224 wicpa.org

Both these forms of political contribution are critical to WICPA’s mission and success. Please visit www.wicpa.org/give/ cpac-lif for more information, or contribute by mailing your check* to the WICPA at W233N2080 Ridgeview Pkwy., Suite 201, Waukesha WI 53188.

Thank you for all you do for our profession to support our political advocacy and help to control our professional destinies.

The WICPA and its members are resources to our legislators. We share our expertise so that when public policy matters arise, we are proactively consulted and can provide input before potential legislation starts working its way through the legislative process. In this way, we can be involved on issues that impact our profession.

• Imposing sales tax on professional services would be detrimental to the well-being of the state’s residents and businesses, and the regressive nature of the tax would be unfair to low income-individuals. (The WICPA fights such legislation every year.)

Unfortunately, the end of summer seems to be the beginning of election season. I dislike the political ads (especially the negative ones) as much as you do. The reality is that the WICPA and each of us individually need to be involved in political advocacy to continue leading, shaping and controlling our profession’s destiny. Funding is critically necessary to continue and expand the great work the WICPA does to advocate for our profession and improve the business climate and fiscal responsibility of the state.

*Please make your check out to WICPA CPAC or WICPA LIF.

ummer is sure flying by, just as it seems to do in Wisconsin every year. I hope you are all getting some time to vacation, rest, relax and recharge. I’m certainly enjoying time on the golf course and softball diamonds this summer and looking forward to more of those activities before fall arrives.

• Encouraging legislators to push for the state to adopt GAAP accounting to measure and communicate its financial performance and budgeting has resulted in improved fiscal accountability and transparency.

• Extreme deregulation and elimination of licensing requirements for CPAs and other highly technical professions, which would harm Wisconsin businesses and residents.

By Steven A. Pullara, CPA, CGMA

• The WICPA’s continued collaboration with the Department of Revenue and leaders in the legislature to simplify tax statutes and conform to the federal tax code enables CPAs, taxpayers and businesses to benefit from clarity and avoid confusion.

OUTLOOK | CHAIR’S LETTER

I encourage you to join me in contributing to the WICPA Political Action Committee (CPAC) and/or Legislative Involvement Fund (LIF). Contributions to CPAC help support political candidates who understand and support WICPA positions. The WICPA makes informed nonpartisan decisions about which candidates to support based on the political climate, candidates’ platforms and their track records. LIF funds are used only with your consent; you get to control where your money goes. You may be contacted for permission to use your LIF contribution for a particular candidate, or you may designate your funds to a specific state candidate on the contribution form.

STRENGTH IN NUMBERS

• Continued simplification of statutes to conform to the federal tax code so CPAs, taxpayers and businesses benefit from clarification and avoid confusion.

• Imposing sales tax on professional services that are critical to the well-being of Wisconsin residents and businesses.

• Deregulation and elimination of licensing requirements for CPAs and other highly technical professions that would harm Wisconsin businesses and clients.

Legislators see WICPA members as trustworthy experts, who are knowledgeable and objective when it comes to business and economic issues that impact our state.

PROTECTING YOUR INTERESTS

Both forms of contributions are important for success. Amounts needed to contribute to legislators are usually in excess of PAC limits. Contributions to LIF provide the additional financial funding needed to support legislators and our positions. We recommend larger contributions are better suited to LIF and smaller contributions to CPAC.

Contributions to the Legislative Involvement Fund (LIF) are used only with your consent to help get elected position candidates who understand and support our positions. We will contact you for permission to use your funds for a particular candidate OR you can designate the State Representative, Senator or Governor or preferred political party on the contribution form.

As the WICPA continues to navigate through the diverse political climate, we will need to build and invest in new relationships and maintain the current ones that are important to support, protect, defend and defeat policy impacting the accounting profession and Wisconsin businesses. Your financial resources are needed to contribute to election campaigns and sustain our voice in state government.

5On Balance September | October 2022wicpa.org

What is the difference?

YOUR FUTURE AS A CPA SUPPORT THE WICPA POLITICAL ADVOCACY EFFORTS

We anticipate proposed legislation in the following areas:

There is strength in numbers and unified voices of WICPA members across the state make the difference. Your voice and your financial participation are key. Contributions to participate in the legislative process to promote responsible law changes are a cost of doing business, similar to insurance.

TO CONTRIBUTE, VISIT PROTECTWICPA.ORG/GIVE/CPAC-LIF.

Contributions to the WICPA Political Action Committee (CPAC) are used to help get elected political candidates who understand and support our positions. Informed decisions by the WICPA are made about which candidates to support by closely monitoring the political climate, candidates’ platforms and their track records.

CONTRIBUTE TO CPAC AND/OR LIF TODAY

• Evaluation of interest rates on refunds and assessments.

The primary influencers of careers are parents and educators. When casually polling some of our members, we asked, “How do you introduce yourself to others?” Most said

We also have seen “CPA” removed from business cards and email signatures. How is this a good business or reputational decision? How are CPAs set aside as trusted advisors without using the credential?

Adeclining

Misperceptions about accounting as a career suggest that young people hold the profession in low regard — they do not understand what accountants do, and they do not appreciate the opportunities the profession offers.

We also know that firms are not able to find enough staff to fill demand, so hiring non-CPAs and nonaccounting staff with similar compensation has significantly increased, which also tends to undervalue the credential.

Perceptions and misperceptions

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We also explored the following:

The WICPA and our board of directors are committed to promoting the value of the profession. Current initiatives include the following:

“We all have the ability to influence the future of the profession.” & CEO’s MESSAGE

The CPA Credential is Currently Undervalued

IN TOUCH | PRESIDENT

When college students consider their options, accounting does not stand out as an attractive career option. According to recent research, CPAs are viewed as boring and that they have to be good at math, sit behind a desk, work long and demanding hours and have no work-life balance.

How do we motivate students and staff to take (or finish) the CPA Exam? Have organizations adjusted to the new exam timelines? Are they allowing enough time for study?

How do firms, companies, professors — and even you — talk about the profession? Do you talk about the variety of work, the many opportunities, the quality of life, the prestige, the advancement and the career salary potential?

How do we help people see themselves on the path to CPA? How do we articulate the value of an accounting degree?These are all questions we need to embrace and take responsibility for at the WICPA and in our networks, homes and workplaces.

This is not to say that accounting is a bad choice; but it infers that the profession has not done its job of explaining to students why it is a good choice.

• Enhance relationships with college educators through our Accounting Higher Education Committee. (A

Our commitment

The group came to consensus on the core challenge: The CPA credential is currently undervalued.

Although there are many factors to this issue that are out of our control (such as boomers retiring, a generally declining population and fewer students attending college), we need to focus on and address the issues that are within our control. The first of these is that we have a perception issue.

Challenges and solutions

pipeline of new CPAs is the top longterm challenge that firms and companies are facing regarding the future of the profession. The WICPA board of directors took a deeper strategic dive into the pipeline challenge and pushed themselves to understand the future of the profession and the impact and realities of change.

they used the word “accountant” and not “CPA.” Why is that? CPAs work hard for this credential, but it isn’t their first response. It’s curious.

• Continue building relationships with high school educators through our High School Educator

o Send WICPA branded items to high school educators’ classrooms.

• Create videos of the opportunities within the profession to dispel myths.

o “I’m a CPA” series encouraging members to use “CPA.”

o “I am a CPA because …” and “Without my CPA I couldn’t ….”

o Create new marketing materials for students.

o CPA career videos highlighting the different areas CPAs work in.

o Design and purchase new WICPA branded items for giveaways at programs and events, including WICPA t-shirts for new members, students, and board and committee members.

• Support federal legislation to include accounting in STEM programs.

• Collaborate with the Accounting Examining Board and DSPS to accept foreign college credits.

The Finance Committee of the WICPA Board has reviewed and approved the WICPA audited financial statements for the fiscal year ended April 30, 2022.

o Level-up series/life-plan roadmap (to get to CPA).

The WICPA Educational Foundation Board has reviewed and approved the audited WICPA Educational Foundation financial statements for the fiscal year ended April 30, 2022.

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

Audited financial statements approved for fiscal year ended April 30, 2022

We all have the ability to influence the future of the profession. If you would like to volunteer to appear in a video, write an article for CPA2b or speak at a high school or college presentation, please contact me. I welcome and encourage your involvement.

oCommittee.Seekmore volunteers to speak at high schools.

• Continue the “Note to Self” column in CPA2b, reflecting on a professional member’s journey to becoming a CPA.

Members may request a copy of the audited financial statements by contacting WICPA President & CEO Tammy Hofstede at 262-785-0445 ext. 4518 or tammy@wicpa.org.

o Offer high school student memberships.

o “Change the perception” video series — myths/facts.

member of the Accounting Examining Board is chair of the committee.)

• Evaluate and update branding.

o Develop external ads promoting the profession and place them in publications and chambers of commerce across the state.

7On Balance September | October 2022wicpa.org

NEXTShapingthe

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SibilskiJohnbyPhotography

“It is important for students, especially diverse students, to see successful CPAs who look like them,” Conduah said. “Very often, students don’t even know this is an option for them. You cannot become something you don’t even know is a possibility,” she said. Then an experience with a colleague nudged her into seriously considering teaching full time.

Dorothy Conduah, CPA, MBA, CGMA, an accounting faculty member at Madison College, did not think teaching was in her DNA, but she knew accounting was. She learned this early on when, as a child, she would help her shopkeeper grandmother count the cash in her store at the end of the day. So, after finishing high school in London (she was born in Ghana, West Africa), she went on to college and majored in accounting. Conduah eventually moved to the U.S., where she pursued the CPA designation.

From a spark to a flame

By Marcia Tillett-Zinzow

“

In addition to her adjunct work, Conduah has visited area high schools throughout her career to speak to students about accounting and the benefits of a career as a CPA. When she was at American Girl, she felt she was setting an example as a culturally diverse female CPA working in the corporate world.

There is nothing more rewarding than seeing students persist and succeed. I have the opportunity to help shape the next generation of CPAs.

She obtained her MBA from the University of Wisconsin–Madison, going through their evening MBA program while working full time.

GENERATION

9On Balance September | October 2022wicpa.org

Conduah took the CPA Exam and passed all four parts on the first try (while pregnant with her first child, no less). She then worked in public accounting, gaining diverse and practical experience in the field. When she decided to pursue her MBA, Conduah transitioned into the corporate sector, going to work for American Girl’s corporate headquarters in Middleton.

Conduah spent 16 years of her career at American Girl, and during her time there, she began teaching a night course in accounting as an adjunct instructor at Lakeland University. Her goal was really just to improve her presentation skills. “I already had my MBA, and I felt like I should be consistently engaged in situations where you have that challenge of speaking in front of a group,” sheBeforesaid. long, the reward of seeing students achieve and grow began to fan a spark into a flame. “I loved the interaction with students — seeing them learn and grow in pursuit of their career goals. That’s when I first fell in love with teaching,” she said.

One of Conduah’s successes is Angela Thomas, CPA, a past chair of the WICPA board of directors and the current Wisconsin state controller. “She is a former student whom I’ve mentored over the years, and she is doing great things with her career,” said Conduah. “Makes me quite proud if I may say so!”

getting the education that keeps them interested in the field,” she Sometimesexplained.keeping them interested means making accounting “cool.” Conduah believes this is even more important at the high school level, and she opines that high school accounting teachers do a phenomenal job of it. She talked about her son, Jonathan, who is now 26 and a CPA working in the field in Chicago.

During one Take Your Child to Work Day, a colleague asked if her daughter could shadow Conduah for an hour or so. “So we sat down, and we talked about what I do and about accounting as a career and the benefits she could expect if she were to take that path,” Conduah said.

So when the opportunity to teach full time at Madison College presented itself, Conduah made the transition to teaching full time. That high school student, by the way, did go on to college and major in accounting at UW–Madison, Conduah said, and now she is a CPA practicing in one of the Big Four CPA firms.

College professors are one of the kingpins in filling the CPA pipeline. It’s often a professor who helps solidify a student’s career path. But, Conduah points out, the challenge is owned by all CPAs, from those who go into the pre-college classrooms to promote the field to the managers who mentor the interns and direct reports in their offices. She suggests starting early in students’ educational lives, visiting middle school and high school classrooms to talk about accounting and make it relatable to them.“Getting in front of the students is step one. Getting them into the accounting classes is step two — and once they are there, as educators we must make sure they are

If we educators are able to nurture them enough to get them into the field, our corporate leaders need to do their part to retain them.

On Balance September | October 202210 wicpa.org

The daughter, who was in high school at the time, had been thinking she would go to business school and pursue marketing or maybe human resources because her mother was in HR.

“But after our conversation, she went back and told her mother how much she enjoyed our conversation and that she was going to make a switch into accounting,” Conduah said. “I thought, If I can make that kind of impact by spending just an hour with a student, imagine the effect I could have as a full-time instructor in front of the classroom!”

“This is why I love what I do and why I transitioned from a successful corporate career to academia. In the classroom, I have a chance to make a difference every single day. There is nothing more rewarding than seeing students persist and succeed,” she said. “I have the opportunity to help shape the next generation of CPAs.”

The pipeline issue

“

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Very often, Conduah noted, diverse professionals are called upon to come up with answers to the diversity question, but the solutions lie with a wider audience.

Conduah with her husband, George, receiving the WICPA’s 2020 Accounting Educator Excellence Award.

Step three, she said, is up to the organizations who hire young professionals aspiring to become CPAs — especially when it comes to bringing more diversity to the“Ifprofession.weeducators are able to nurture them enough to get them into the field, our corporate leaders need to do their part to retain them,” she said. That may mean becoming culturally aware and providing additional mentoring and support to those who need it.

The support needed by students early in the pipeline may be a bit different, she explained. “Culturally responsive teaching practices, financial assistance and even emotional support may be what it takes for them to succeed — because in our society, we don’t all start at the same level, and we need to recognize and acknowledge this.”

Family ties

“ We must work together to bring about change and shape the future of our profession.

“To retain these professionals in the field, business leaders must maintain a culturally diverse environment for them to grow and develop in their careers. Today’s professionals have options and will take their talents to where they are valued,” Conduah noted.

“We all own it together,” she said. “It should be up to the entire profession to take on this effort. We must work together to bring about change and shape the future of our profession.”

“Several of Jonathan’s high school classmates, who like him were student athletes, ended up majoring in accounting, pursuing their CPAs, and are currently working in the field — most in the Big Four,” Conduah said. “And when other students see these student athletes taking accounting, suddenly it’s not such a boring fieldStudentsanymore!”see the value of accounting when they can relate it to their lives, she said, but even more important, they see the value when they can see the variety of options and employment potential in the field.

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

Conduah also believes in the importance of giving back to our communities and volunteers her time to causes she believes in. Over the years, she has served on nonprofit boards, including the WICPA Educational Foundation board and the Accounting Careers Committee. She was the 2020 Accounting Educator Excellence Award recipient.

Conduah has been married to her husband, George, since 1994. “He is the kindest person I know, my anchor and my greatest champion, who supports and challenges me to be my best self in all my endeavors” Conduah said. The couple’s younger son, Madison (Maddy), is a senior in pre-med at Emory University in Atlanta with plans to pursue a career in medicine. The couple enjoy traveling among other pursuits. With both boys playing soccer, basketball and hockey between them while growing up, the family have traveled across Wisconsin for various sporting events. Believing travel to be an education, the couple have traveled across the globe with their boys, with their last trip before the pandemic to Tokyo.

By Justin Greene, CPA

No matter what your position, cryptocurrency is being recognized by governments, accepted as a form of payment, added to balance sheets, bundled with traditional investment options and used as a method for charitable giving. Just like electronic giving altered the charitable giving landscape over the last decade or so, digital assets have the potential to do that exponentially faster.

The future of nonprofit generosity

On Balance September | October 202212 wicpa.org

oday’s world can be defined by constant change driven forward by technological advances. Artificial intelligence, Web3 and the metaverse were fairly fringe topics of discussion not long ago, and none more so than cryptocurrency. Bring up the word “crypto” in any conversation these days, and you’ll get polarizing answers ranging from a criminal’s tool to the future of money, from pure speculation to the perfect store of value rivalling gold.

cryptocurrency donations to their fund increased from $28 million in 2020 to more than $331 million in 2021 — an almost 1,100% increase. A 2021 study by Fidelity Charitable on cryptocurrency and philanthropy stated that 35% of millennials now own cryptocurrency and another 33% indicated they were somewhat likely to consider it in 2022. While we have seen adoption across all age groups, this indicates a higher likelihood for digital methods of generosity with future

Accordinggenerations.toJamesLawrence, cofounder and CEO of Engiven, a leading cryptocurrency donation management platform, “Cryptocurrency philanthropy is quickly becoming the fastest growth segment in the digital giving space and one of the most compelling. In 2021 on the Engiven platform, we saw an average cryptocurrency donation of $15,000-plus and many crypto gifts in the six- and seven-figure range, and the number of nonprofits added to the platform increased by 1,650%. We’ve been fortunate to have helped many nonprofits,

CRYPTOCURRENCY:

Fidelity Charitable, a 501(c)(3) that manages one of the largest donor-advised funds in the United States, reported

To understand cryptocurrency, you need to understand the technology behind it. A blockchain is a digital ledger made up of records called blocks. Each block contains data, such as financial transactions, which have been verified and reference the block before it. These blocks are connected via a cryptographic hash, which is what puts the “crypto” in cryptocurrency. Through cryptography, a chain of blocks (records) is created that is immutable or extremely difficult to alter. Blockchains can be decentralized (not controlled by a central organization) and distributed (every node has a copy of the ledger and verifies new entries). Industries such as health care, supply chain and finance are using the advantages of this technology, bringing trust and accountability to their data, lowering costs of transactions and providing faster settlement of payments.

The first and largest cryptocurrency by market cap is bitcoin. Created in 2009 by an anonymous person or group named Satoshi Nakamoto, bitcoin was the first real use of blockchain. At the time of this article, bitcoin was ranked No. 9 in terms of global value across all assets by total market cap. There are thousands of coins/tokens available today, many of which have legitimate use cases, and many of which do not, so do your research. The use of the word “currency” is a misnomer as cryptocurrency has many functions. Some tokens can be used as governance tokens (making decisions), utility tokens (providing functionality) and, of course, as a means of transferring value. It’s clear though that what was once a fringe idea championed by tech-savvy enthusiasts is now being recognized by banking institutions, corporations and governments.

Wallets are an important component of transacting cryptocurrency. A cryptocurrency wallet is simply where a related pair of keys (key pair) are stored, while the actual record of your cryptocurrency resides on the blockchain. The key pair consists of a private key and its derived public key. The public key is used to send and receive cryptocurrency, and your private key is needed to unlock them. Think of your private key as proof of ownership. There are many different types of wallets used to hold cryptocurrency. Hot wallets are connected to the internet, whereas cold wallets are not. Custodial wallets are where your keys are held by someone else, whereas noncustodial means

Cryptocurrency is a fungible, digital asset that acts as a store of value and a medium of exchange. “Fungible” means they are mutually interchangeable and able to be replaced by identical items so you can swap one token for another, and you still have one token of the same value. There has been a lot of buzz today around non-fungible tokens (NFTs), which represent unique, one-of-a kind digital assets such as music or artwork. Cryptocurrency is created through the process of verifying or validating data and adding blocks to the chain. Nodes are rewarded with an uncirculated asset for helping to keep the blockchain healthy and functioning.

What is blockchain?

For many nonprofits, the uncertainty surrounding cryptocurrency is a major drawback to accepting it for their organization. As leaders, gaining an understanding is an important first step, not only for your own level of comfort in the technology but also so you can be knowledgeable when communicating with donors. Here is a very brief overview of blockchain and cryptocurrency before we dive into what nonprofits should do to get started.

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you hold your own keys. Paper wallets are just keys printed on paper, hardware wallets can be USB devices, software wallets can be applications on your computer and mobile wallets are applications on your mobile device. Most people end up using a combination of wallets. As you can see, there are many options, so it’s important to do your research first.

Industries such as health care, supply chain and finance are using the advantages of this technology, bringing trust and accountability to their data, lowering costs of transactions and providing faster settlement of payments.

“

What is cryptocurrency?

such as the Salvation Army, U.S. Figure Skating and Compassion International, reach new donors in an innovative way. We’re now seeing donors with appreciated crypto-assets making impactful donations across the full spectrum of nonprofit missions.”

Reporting requirements for crypto donations

For example, if a donor sells cryptocurrency for $100,000 with a $30,000 cost basis, they’ll have a gain of $70,000. If they then donate the proceeds after tax (assuming a 20% tax rate) to a nonprofit, the nonprofit would receive $86,000. If the donor had donated the crypto directly to the nonprofit, the nonprofit would have received $100,000 — maximizing their gift to the nonprofit and increasing their charitable contributions deduction.

Determining the cost basis

Update the gift acceptance policy

Donors are looking for creative ways to give that both supports their charitable organization and minimizes their tax liability. If a donor sells crypto that has appreciated in value, they will have to recognize a capital gain on the sale. If, instead, the donor decides to donate that crypto, they will get the double benefit of receiving a charitable contribution deduction while also avoiding capital gains.

Does it matter how long a donor holds crypto before donating it?

The IRS has classified crypto as property, not a currency or security. This means we treat it like a noncash asset for donation purposes. There are, however, many similarities to how stock donations are handled.

Yes. Donated crypto held less than one year disallows the capital gains tax benefit and only allows a deduction on the cost basis instead of the total value of the donation.

Should a nonprofit hold cryptocurrency?

For crypto donations valued over $250, a standard noncash donation receipt is required for the donor. For crypto donations valued over $500, the donor must file Form 8283 (Noncash Charitable Contributions). For crypto donations valued over

As someone who has spent many years in nonprofit financial leadership, I am always looking for ways to support the mission of the organization. Once I understood what cryptocurrency was, the question for me was not if we should accept cryptocurrency donations, but how. Let’s look at what this means for a nonprofit and its donors, and how a nonprofit can prepare.

If a cryptocurrency is sold or traded, this creates a taxable event, and the difference in value results in a capital gain or loss. Short-term gains (losses) result from the profit or loss from the sale of cryptocurrencies held one year or less. Long-term gains (losses) result from the profit or loss from the sale of cryptocurrencies held longer than one year. When purchasing (or trading) cryptocurrency, the purchase price less any associated fees is your cost basis. When selling (or trading) cryptocurrency, the sales price less any associated fees is your adjusted sales price.

For most charitable organizations, liquidating cryptocurrency immediately is recommended. Crypto values can swing wildly, potentially reducing the impact of the gift, and most donors intend for their gift to benefit the mission immediately. By liquidating the donation immediately, a nonprofit is protected from any significant swing in value.

Getting a nonprofit ready for cryptocurrency

“

Once I understood what cryptocurrency was, the question for me was not if we should accept cryptocurrency donations, but how.

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What are the benefits to donors?

Crypto and the IRS

Once leadership has made the decision to accept cryptocurrency donations, it’s a best practice to adjust the gift acceptance policy to acknowledge that the nonprofit is now accepting cryptocurrency and to specify whether it will be either held or sold immediately.

$5,000, the donor must receive a qualified appraisal prepared by a qualified appraiser. Form 8283 must be signed by the charitable organization and the qualified appraiser. A qualified appraisal is not required to be submitted to the IRS unless the donation value is above $500,000. If the cryptocurrency is sold within three years of receiving it, the charitable organization must complete Form 8282 and provide a copy to the donor.

What is the easiest way to get started?

To receive cryptocurrency donations, a nonprofit needs to have a crypto wallet at the ready. This can be done through various means, such as setting up a manual wallet (Metamask) through an exchange (Coinbase) or through a cryptocurrency donation platform (Engiven). Manual wallets are not recommended because there are no internal controls in place to safeguard assets, and you need to have a fair amount of experience transacting cryptocurrency. Exchanges are not ideal because you have to manually liquidate the gift, they’re not designed to support the processing of donations and they provide little to no support.

Donating cryptocurrency can be as simple as a few clicks and, in many ways, just as simple as traditional online giving, but nonprofits can only accept cryptocurrency if they’re ready. In the past year alone, we’ve seen a significant shift and adoption of digital assets, and now more and more people are making them a part of their portfolio. Let’s get ready to meet our donors where they already are!

15On Balance September | October 2022wicpa.org

Reprinted with permission from the Virginia Society of CPAs.

Join the WICPA Board of Directors! The WICPA is seeking members to serve on its board of directors. Opportunities include: • upStayingtodate issuesprofessionalon • Providing missionwithgovernancestrategicinaccordancetheWICPAstrategicplan,andvision • Acquiring trainingleadershipnewandskills Applicants must be WICPA CPA members in good standing. A “CPA member” is defined as a WICPA member who has obtained a certificate as a CPA from the Accounting Examining Board of the State of Wisconsin, or from a similar legally constituted authority in any other state, possession or territory of the United States or the District of Columbia. To apply, visit wicpa.org/BoardApplication through Nov. 15, 2022. Questions? Contact tammy@wicpa.org.

For most nonprofits, the best option is a cryptocurrency donation platform. Using Engiven as an example, when a donor makes a donation, the cryptocurrency is transferred

and liquidated on behalf of the nonprofit, and then an ACH deposit is made to the nonprofit’s bank account. The nonprofit never has to interact with cryptocurrency but can still provide a means of giving for its donors. If desired, the nonprofit can also configure their account to hold cryptocurrency when donated and not liquidate it. Upon receipt of the cryptocurrency, the platform will issue an automated gift acknowledgement to the donor and notification to the nonprofit. The IRS Forms 8283/8282 are auto-generated, and the qualified appraisal prepared when applicable. The goal of a platform like Engiven is to do the heavy lifting for nonprofits so they can focus on their mission.

Justin Greene, CPA, is the CFO for Engiven, a cryptocurrency donation management platform, and CFO for Liberty Live Church, a large multi-site church based in Hampton, Virginia. He also sits on the Innovation Advisory Council for the Virginia Society of CPAs.

information to clients or team members without an accounting background, so providing students with opportunities to practice these skills in a low-risk educational environment can be critical in preparing them for success. Presentation assignments that center on accounting careers can benefit the presenters and their classmates. Including informational interviews with accountants as a part of these projects can help students develop networking and interpersonal skills in addition to better-informed perceptions of the communication skills needed for success.

By Cory Ng, CPA, DBA, CGMA and Brian Trout, CPA, DBA, CMA

Communication

“

Base Skills for CPAs Aren’t Always Accounting Oriented

On Balance September | October 202216 wicpa.org

These methods, undoubtedly, will be uncomfortable for some, as accounting students have been found to possess a higher-than-average apprehension about oral

When it comes to helping students form accurate perceptions of the profession and appreciate the value of communication skills, alumni can be especially effective. These business-world veterans can discuss similar perceptions they had as undergraduates and contrast them to their firsthand experiences in the field. Contact with active professionals also benefits educators who are constantly striving to bridge the gap between academia and the private sector.

In addition to sharing tales of the real world, students also need hands-on practice to hone their communication skills. CPAs are expected to present complex financial

Interpersonal skills are more important than ever. Roleplaying has been an effective means to develop these skills in medicine. Doctors, like accountants, regularly engage in professional conversations with lay individuals. While role-playing is not widely used in accounting education, it is reasonable to assume that it can benefit new accountants as it has medical professionals.

1 E. Ameen, C. Jackson, and C. Malgwi, “Student Perceptions of Oral Communication Requirements in the Accounting Profession,” Global Perspectives on Accounting Education, 7 (2010) pages 31–49; F. Gray and N. Murray, “A Distinguishing Factor: Oral Communication Skills in New Accountancy Graduates,” Accounting Education, 20(3) (2011), pages 275–294; Y. M. Lim, T. H. Lee, C. S. Yap, and C. C. Ling, “Employability Skills, Personal Qualities, and Early Employment Problems of Entry-Level Auditors: Perspectives from Employers, Lecturers, Auditors, and Students,” Journal of Education for Business, 91(4), (2016), pages 185–192; L. Ping, D. Grace, S. Krishnan, and G. Sudha, “Failure to Communicate: Why Accounting Students Don’t Measure Up to Professionals’ Expectations,” The CPA Journal, 80(1) (2010), page 63.

Potential CPAs who do not possess adequate communication skills likely will negatively impact client satisfaction, internal working relationships and their own employability.

oday, in both corporate and public accounting roles, accountants are expected to be business partners. Consequently, a high value is placed on those entrants into the profession who possess both technical accounting know-how and traditional professional skills. Acknowledging this desire, the core competency frameworks developed by the AICPA and the Institute of Management Accountants heavily emphasize nonaccounting skills as competencies needed by students entering the profession. After reviewing these frameworks and reflecting on the feedback from accounting professionals and university alumni, we have identified three themes and offer practical suggestions to support educators as they prepare the next generation of CPAs.

Potential CPAs who do not possess adequate communication skills likely will negatively impact client satisfaction, internal working relationships and their own employability. This is well known among leaders in the profession, but research indicates accounting students still minimize the role that communication skills play in achieving career success.1

The ability to think critically is another highly desired competency by employers. According to Bloom’s taxonomy, higher-order thinking skills are characterized by the ability to analyze situations, draw connections among ideas, evaluate and ultimately recommend a course of action. The CPA Exam has evolved to increase the assessment of these skills through task-based simulations that are considered “authentic assessments.” Nonauthentic assessments — such as those involving multiple-choice questions — have been criticized for promoting “surface learning.” Authentic assessments, by contrast, are designed to promote deep learning where students problem-solve in real-life contexts.

communication.2 Instructors should acknowledge students’ apprehension and legitimize it but also explain the underlying rationale. Research consistently shows that communicating the relevance of assignments positively affects student motivation and engagement.

12 (2009), pages 185–200.

in the learning process by requiring students to apply acquired knowledge to new situations. A differentiating characteristic of problem-based learning is that not all the facts are given; therefore, the problem may have more than one acceptable answer based on the assumptions students make. These exercises are deliberately designed so that there is no fixed formula for solving the case, which mirrors the messy and ill-structured problems CPAs often encounter. Students are compelled to determine the nature of the problem, take responsibility for researching issues and generate an informed solution. The degree of difficulty should be contingent upon students’ capabilities. These techniques may be best in upper-level classes where students have already gained a fundamental understanding of accounting concepts and principles.

Critical thinking

There is concern in the working world that teamwork skills among recent graduates are lacking. While some students are inclined to collaborate, others are not as enthusiastic. It is often dependent on their personalities, past experiences and C. Gardner, M. Milne, C. Stringer, and R. Whiting, “Oral and Written Communication Apprehension in Accounting Students: Curriculum Impacts and Impacts on Academic Performance,” Accounting Education, 14(3) (2005), pages 313–336; C. Ireland, “Apprehension Felt towards Delivering Oral Presentations: A Case Study of Accountancy Students,” Accounting Education, 29(3), (2020), pages 305–320; D. Meixner, D. Lowe, and H. Nouri, “An Examination of Business Student Perceptions: The Effect of Math and Communication Apprehension on Choice of Major,” Advances in Accounting Behavioral Research,

17On Balance September | October 2022wicpa.org

Collaboration

Problem-based learning is an authentic assessment akin to case-based learning. Case studies encourage active involvement

As one would expect, issues within a group may surface because students have different personalities, priorities and proficiencies. These uncomfortable situations are part of the learning process, and it is important for educators to seize them as opportunities to teach students the conflictresolution skills they will need to navigate similar situations as professionals. Collaborative projects, and the group dynamics that emerge, can help students appreciate the value of reliable, adaptable and communicative team members.

Cory Ng, CPA, DBA, CGMA, is an associate professor of instruction in accounting at the Fox School of Business at Temple University in Philadelphia and chair of the Pennsylvania CPA Journal Editorial Board. Contact him at cory.ng@temple.edu. Brian Trout, CPA, DBA, CMA, is an assistant professor of accounting and finance at Millersville University in Millersville. Contact him at brian.trout@millersville.edu.

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3 J. Christensen, J. Harrison, J. Hollindale, and K. Wood, “Implementing Team-Based Learning (TBL) in Accounting Courses,” Accounting Education, 28(2) (2019), pages 195–219; H. Gottschall and M. Garcia-Bayonas, “Student Attitudes toward Group Work among Undergraduates in Business Administration, Education, and Mathematics,” Educational Research Quarterly, 32(1) (2008), pages 3–28; L. Ping, D. Grace, S. Krishnan, and G. Sudha, “Failure to Communicate: Why Accounting Students Don’t Measure Up to Professionals’ Expectations,” The CPA Journal, 80(1) (2010), page 63; J. Schultz, J. Wilson, and K. Hess, “Team-Based Classroom Pedagogy Reframed: The Student Perspective,” American Journal of Business Education, 3(7) (2010), pages 17–24.

This article reprinted with permission from the Pennsylvania Institute of CPAs.

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communication skills.3 Students should be afforded welldesigned group experiences to learn how to work productively with diverse individuals to achieve a common goal. Communicating the importance of collaboration as it relates to the modern profession is paramount to helping students more readily embrace teams. Group work activities can be an effective method, but the biggest potential drawback is freeriding group members. To help mitigate this risk, integrate a peer evaluation system. For example, auditing course projects could be assessed at the group level and then multiplied by the group’s average peer evaluations to deliver individual grades.

“

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person presentations. PwC’s Challenge case competition, Deloitte’s FanTAXtic case study competition and the Institute of Management Accountants’ Student Case Competition are a few options educators may be interested in exploring.

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Case competitions are another way to assist students with developing team skills. Not only can students harness the value of teams through competition, but these challenging endeavors also foster professional skills such as project management, goal setting and communication. Most competitions require teams to examine relevant business issues and deliver their solutions via written, video or in-

On Balance September | October 202218 wicpa.org

Students should be afforded welldesigned group experiences to learn how to work productively with diverse individuals to achieve a common goal.

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On Balance September | October 202220 wicpa.org

he use of artificial intelligence (AI) and machine learning in the workplace is growing exponentially. Employers are using AI — sometimes without knowing it — to make employment decisions at every stage of the job life cycle. Over the last two decades, web-based applications and questionnaires have made paper applications nearly obsolete. Employers seeking to streamline recruitment and control costs have adopted use of computer-based screening tools such as “chatbots” to schedule interviews, ask screening questions and even conduct videoconference interviews where facial analysis evaluates a candidate’s personality.

By Jill Hall,PedigoJD

In May, Equal Employment Opportunity Commission (EEOC) Chair Charlotte Burrows said, “Over 80% of employers use AI in some form in their broader work and their employment decision making.” U.S. employers are using predictive algorithms in their hiring processes, from résumé scanners to interview analysis to performance predictors. Popular websites such as LinkedIn, Monster, ZipRecruiter and CareerBuilder use AI to pair résumé and application information from job seekers with employer job descriptions to generate recommendations. Computer algorithms use

Employers Using Artificial Intelligence in Decision Making

Federal government action

Additionally, by using a job description to create the data set and algorithm, word choice limitations can also create bias. Using this biased data, AI can predetermine who sees job advertisements. As a result of these issues, a majority of résumés can be screened out before a human is involved. Bias can also result when variables selected for use contain bias (such as use of a zip code) that can reflect racial or ethnic bias.

Currently no federal law or regulations specifically regulate use of AI in the workplace.

Finally, bias may creep into decision making because employers may not question automated — and essentially unreviewable — proprietary predictors, as AI provides an appearance and sense of objectivity and scientific analysis.

Bias enters the AI selection process in basically three ways: through biased data, biased variables or biased decision making. Use of biased data can result from use of benchmark résumés from a previous successful candidate group of a predominant gender, age, national origin, race or other group. Built upon the biased data, the algorithm might then exclude words that are commonly found in résumés of a minority group.

data to make inferences about people, including their identities, their demographic attributes, their preferences and their likely future behaviors. Now faced with the growing talent shortage, employers of all sizes see the use of AI as a more efficient way through the hiring process.

Currently no federal law or regulations specifically regulate use of AI in the workplace. As early as 2016, the EEOC signaled its recognition of concerns over bias and resulting discrimination from the impact of AI, people analytics and “big data” on employment. However, there was little movement by the EEOC until 2021 when, following an October 2020 inquiry by a group of U.S. senators, the EEOC launched internal and then external initiatives. Beginning in early spring 2021, EEOC Commissioner Keith Sonderling began commenting, conducting seminars and issuing articles on the discrimination concerns related to AI bias in employment. In September 2021, Sonderling signaled that EEOC may use commissioner charges — agency-initiated investigations unconnected to a discrimination charge — to ensure employers are not using AI unlawfully. In the same time frame, commission investigators all participated in AI training.

Then on Oct. 28, 2021, Chair Burrows announced a new EEOC initiative focused on ensuring that the use of AI by

When designed carefully, AI can help recruiting and hiring to be more open, fair and inclusive by masking for protected classes, hiding terms associated with a particular gender or race, identifying adjacent skills or identifying candidates for upskilling. However, the use of AI technology can also create risk. Because algorithms rely on historical data sets and human inputs, the technology can generate bias or exacerbate existing bias.

“

21On Balance September | October 2022wicpa.org

Benefits and risks of using AI

Amazon learned the impact such biased data can make when it tested a résumé screening tool between 2015 and 2017. Data scientists fed the program’s algorithm a data set consisting of résumés belonging to successful current employees and candidates from the previous 10 years. Using machine learning, the program was able to identify patterns and then use those patterns to rate new applicants’ résumés. However, because the vast majority of résumés in the data set belonged to men, the program automatically downgraded résumés with certain word combinations such as women’s sports teams, women’s clubs and the names of women’s colleges. Additionally, the algorithms learned to assign significance to the use of certain terms in résumés and applications and then favored candidates who described themselves using verbs more commonly found on male engineers’ résumés, such as “executed” and “captured.” The tool has been termed “cloning AI,” since it used the data and skills from its historically “best” employees — mostly males — to create the search tool.

In 2021, New York City passed a law regulating the use of “automated employment decision tools.” Employers using such tools must provide advance notice to job candidates of their use and to disclose the job qualifications and characteristics the employer is seeking. Additionally, prior to use employers must have submitted the tools to a “bias audit,” which must be made publicly available. Finally, in spring 2022, the California Fair Employment and Housing Council proposed draft modifications to the state’s nondiscrimination employment law applicable to employers or agencies that use or sell services with AI, supervised machine learning or automated decision systems. The proposed regulations expand discrimination liability to include discrimination resulting from use of an automated decision system regardless of intent.

employers at all employment stages complies with federal anti-discrimination and civil rights laws. Continuing public comment by the commissioners signal that the agency has honed in on the use of hiring and employment technologies as an area of systemic discrimination. Thus, employers using AI or other such technologies should exercise caution. Although the initiative announcement suggested a concentration on information collection, education and guidance, the investigator training points to likely enforcement. Burrows signaled this, saying, “Bias in employment arising from the use of algorithms and AI falls squarely within the commission’s priority to address systemic discrimination.”

from using facial recognition technology during preemployment job interviews without the applicant’s consent.

Even before EEOC took a more thorough look, some states and municipalities had moved forward on legislation or resolutions focused on identification and elimination of bias in employer AI use.

Even before EEOC took a more thorough look, some states and municipalities had moved forward on legislation or resolutions focused on identification and elimination of bias in employer AI use. In August 2019, Illinois enacted the Artificial Intelligence Video Interview Act. The law requires Illinois employers to notify applicants of the nature and operation of any AI-enabled video interview technology used during the hiring process and to obtain their consent. It also requires employers relying “solely” on AI in hiring to collect and annually report to the state the race and ethnicity of candidates selected or rejected for interviews and those that are then hired. Maryland followed with a similar law that prohibits employers

In light of the EEOC’s statements of priority and the state and local legislative action occurring, employers should evaluate their use of AI and automated decision-making tools to ensure there is no ensuing bias. Additionally, if an employer has used or is considering use of an AI technology vendor, the employer should: (1) ensure the vendor understands the employer’s EEO obligations, (2) ask the vendor to explain how it proactively avoids bias in its process and the results, and (3) consider making the avoidance of bias a material term of the vendor contract. Employers are advised to implement policies related to such use — including requiring managers who use AI technology to report any biased results and to prohibit inappropriate or discriminatory use of such systems. Finally, given the fast pace of government activity in this area, employers are advised to keep informed of new state and local legislation and additional federal guidance and enforcement.

On Balance September | October 202222 wicpa.org

Proactive steps for employers

“

In May 2022, the EEOC took another definitive step by issuing technical guidance warning employers that the use of AI and algorithmic decision making in employment decisions may violate the Americans with Disabilities Act (ADA) if, among other things, the tools screen out job applicants with disabilities or result in prohibited disability-related inquiries. The same day, the Department of Justice posted companion technical assistance guidance outlining potential ways AI and automated hiring tools can violate the ADA. Similar to the EEOC guidance, it identified employer obligations regarding individuals with disabilities and the requirement of reasonable accommodation related to AI use.

Jill Pedigo Hall, JD, is a shareholder in the labor and employment section at von Briesen & Roper, s.c. Contact her at 608-661-3966 or jill.hall@vonbriesen.com.

State and local action

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On Balance September | October 202224 wicpa.org 5 Critical First Steps to Launch Your DEI Initiatives { Leadership | DEI Initiatives }

Ally: an individual of one identity group who takes action to advocate, support, sponsor and champion1 those in another group. Allies should be both proactive and reactive, their actions promoting change to systemic structures2 while also supporting individuals when targeted.

• Gender identity

• Ability

Diverse teams are also a reflection of a shifting culture and dynamic within the U.S., especially when it comes to racial and ethnic identity. But while an organization may have a diverse workplace, it doesn’t mean DEI work isn’t important.

“

• Racial and ethnic identity

1 https://www.themuse.com/advice/what-is-an-ally-7-examples 2 https://hbr.org/2020/11/be-a-better-ally

• Sexual orientation

• Age and experience level/tenure

Equity: fair access to opportunities and advancement. This requires both acknowledging barriers to access, including those in your workplace and in the larger society, and working to eliminate those barriers.

Diversity: a spectrum of differences and similarities within groups of people. These differences and characteristics can be both visible and less visible, including:

Leaders at smaller organizations especially might be more apt to avoid conversations around diversity or feel it’s an issue for larger firms and corporations. If this is you, you’re not alone! But this could be costing you more than you realize.

Forming a business case for diversity that defines your purpose for engaging in DEI efforts is one of the first steps you should complete as an organization. This involves aligning your overall business goals with your DEI goals, as well as identifying and engaging key stakeholders.

• Education level

It’s simple: Diversity is good for people and business. A 2015 McKinsey study found that companies who ranked in the top 25% for racial diversity were more likely to have higher financial returns than the median for their industry, while those in the bottom 25% were more likely to fail at achieving above-average earnings. Overall, they report:

2. Build your DEI vocabulary

It’s simple: Diversity is good for people and business.

hile many organizations have prioritized meaningful diversity, equity and inclusion (DEI) work, some still struggle to fully understand what it entails and the full significance of how important it is to business.

25On Balance September | October 2022wicpa.org

“More diverse companies, we believe, are better able to win top talent and improve their customer orientation, employee satisfaction and decision making, and all that leads to a virtuous cycle of increasing returns. This in turn suggests that other kinds of diversity — for example: in age, sexual orientation and experience (such as a global mindset and cultural fluency) — are also likely to bring some level of competitive advantage for companies that can attract and retain such diverse talent.”

Why diversity matters

Are you ready to take action? Here are five critical first steps to beginning your personal and organizational DEI work:

Why does your organization want to engage in a DEI initiative? If your first instinct is to answer “because I know we should,” it’s time to dig deeper. Yes, DEI work is critical and will likely directly impact the future of your organization. But “should” is never a good foundation on which to build an initiative.

Effort is still needed to make sure your organization’s culture is inclusive, equitable, safe, attracts and retains talent, and creates opportunity for all. It’s also important for helping to break down greater systemic barriers and biases.

1. Start with why

There are countless terms to understand within your DEI work. The following terms are five of the most basic and important for building your foundation:

It’s critical your leadership team is committed to diversity, equity and inclusion. Without this buy-in, these efforts are doomed to fail. One way to avoid this is through regular communication with team members and stakeholders.

Reviewing and answering these critical questions is just the beginning. Once your assessment phase is complete, prioritize creating clear goals and metrics that are actionable and will address areas of concern you’ve identified. Without these goals, you’re unable to develop a path forward and track progress as an organization.It’salsoimportant to remember that this phase, as well as many others within DEI work, can be challenging on both a personal and organizational level. At times, it might mean acknowledging historical shortcomings, failings and unconscious biases. This can be uncomfortable but is crucial for growth.

• Examine your data. What is the current diversity breakdown of your organization? What about within the leadership team? Where are opportunities for growth?

4. Lead with communication

• Look at your recruitment efforts. Where are you recruiting? Are you seeing diverse individuals applying for positions? If so, are they receiving interviews and offers? Are there opportunities to reduce/remove bias in your hiring process?

On Balance September | October 202226 wicpa.org

The AICPA’s Accounting Inclusion Maturity Model4 was developed to measure efforts and competencies in four areas: workplace, workforce, marketplace and supplier, and community.

4 https://www.aicpainclusion.com/ { Leadership | DEI Initiatives }

Privilege: when a group of people or an individual within that group receives an advantage simply because of their status. This can be a special right or an immunity as well as increased access to opportunities.

3. Set goals and assess your progress

You can’t determine where you’re going without first understanding where you are currently. Take the time to work through the state of your organization to assess where you are and where there’s room for improvement.

As you build a deeper understanding and vocabulary within the DEI umbrella, remember to make an effort to cover the spectrum of diversity. Learn more terms in the AICPA Diversity and Inclusion Glossary.3

When you’re just starting out with DEI work, it’s important to take time to communicate your vision, goals diversity/aicpa-diversity-and-inclusion-glossary.pdfhttps://us.aicpa.org/content/dam/aicpa/interestareas/privatecompaniespracticesection/humancapital/

Reprinted with permission of the Indiana CPA Society (incpas.org).

5. Sign the CEO pledge

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5 https://us.aicpa.org/career/diversityinitiatives/ceo-action-for-diversity-and-inclusion.

Join leaders from top organizations across the country in signing the CEO Action for Diversity & Inclusion™ pledge.5 This initiative, which prioritizes action, says your organization is committed to creating a trusting space, invested in unconscious bias education and more. When you sign, you’ll also receive access to free resources that will help you live up to your pledge.

No matter where your organization is on its DEI work, there’s always opportunity to continue learning and supporting.

and business case for diversity. As you move forward, regular communication becomes important for creating a culture of accountability and making sure your words translate into tangible action. Remember, saying you’re invested in DEI and doing DEI work are two different things. Organizations that communicate without follow-up will fall behind colleagues who do meaningful work.

Tim Thomson, CPA, CGMA, president of Catalyst Consulting Group LLC in Green Bay, has joined the Stephenson National Bank & Trust board of directors.

Dale Glen, CPA, principal at CLA, was elected board treasurer of the Oshkosh-based business group Excellence in Leadership.

Angela King, CPA, has been promoted to CFO of Eppstein Uhen Architects. She is located in the Milwaukee office.

Alyssa Geracie, CPA, has been promoted by Baker Tilly US LLP to tax partner on the firm’s national tax services team. She is located in the Madison office.

Robert Zemple, CPA, retired, formerly a partner with Baker Tilly, has joined the First Business Bank – Northeast Wisconsin Advisory Board.

Kaitlin Kubiak, CPA, has been promoted to supervisor in the Green Bay office of Hawkins Ash CPAs.

kudosWant to mtzinzow@icloud.com.

Bradley Knowles, CPA, has been promoted to senior associate in the La Crosse office of Hawkins Ash CPAs.

Jose Saenz, CPA, has joined Notre Dame School of Milwaukee as VP of finance.

Bethany Ryers, CPA, MAS, has been promoted by Baker Tilly US LLP to assurance partner on the firm’s energy and utilities team. She is located in the Milwaukee office.

your new job, promotion or award mentioned in Kudos? H Email your announcement and photo in JPG format

Kaitlin KubiakBradley Knowles

Joseph Balus III, CPA, has been promoted by Baker Tilly US LLP to assurance partner in the firm’s manufacturing and distribution service area. He is located in the Madison office.

Jack Marx

Paula Haferman, CPA, has been promoted to senior manager in the Neenah office of Hawkins Ash CPAs.

Gina De Sota, CPA, has joined the Wisconsin Hotel & Lodging Association as finance administrator.

Karin Gale, CPA, a partner with CliftonLarsonAllen (CLA), has been named a 2022 Woman of Influence in the Corporate Executive category by the Milwaukee Business Journal. Gale is a past president of the WICPA board of directors.

Brenda Jones, CPA, MBA, has been appointed the vice chancellor for administrative affairs at UW-Whitewater.

Judy Haven, CPA, has been promoted to partner at Hawkins Ash CPAs. She was most recently a senior tax manager in the firm’s Mequon office.

On Balance September | October 202228 wicpa.org

Travis Olson

Jack Marx, CPA, has been promoted to supervisor in the Neenah office of Hawkins Ash CPAs.

Jose Saenz Victoria Thayer

Garrett Gosh, CPA, CITP, HITRUST, CCSFP, has been promoted by Baker Tilly US LLP to partner in the firm’s risk advisory practice. He is located in the Madison office.

Jan Hauser, CPA, retired, formerly a partner with PwC, has joined the Proterra Inc. board of directors.

Andrea Virsnieks, CPA, a manager at CLA, was listed in the Milwaukee Business Journal’s 2022 list of People to Know in Manufacturing.

Ashley Pharo, CPA, has been promoted by Baker Tilly US LLP to assurance partner on the firm’s commercial audit team. He is located in the Milwaukee office.

Travis Olson, CPA, has been promoted to supervisor in the La Crosse office of Hawkins Ash CPAs.

Paula Haferman Judy Haven

Heidi Pautz, CPA, has been promoted to controller for Port Washington State Bank, where she has worked as a financial accounting analyst for the last 12 years.

Phillip Whitehead, CPA, CFP, CExP, president of Blackhawk Bank – Janesville Market, was recognized as an elite lender by the Wisconsin Business Development Finance Corp.

Victoria Thayer, CPA, has joined Berndt CPA in Madison as an associate manager.

29On Balance September | October 2022wicpa.org Covering the spectrum of your financial needs. Spectrum Investment Advisors 6329 West Mequon Road Mequon, WI 53092 262-238-4010 | www.spectruminvestor.com SM Spectrum Investment Advisors, Inc. is an SEC registered investment adviser located in Mequon, WI. Registration with the SEC does not imply a certain level of skill or training. Retirement Plans Fiduciary Training Investment Monitoring Plan Design Consulting Financial Wellness Targeted EmployeeIndividualEducationAdviceEngagement Wealth Management Holistic Planning Investment Consulting Income Strategies 401(k) - 403(b) - 457 CORPORATE - NON-PROFIT COLOR CODED SYSTEM CUSTOMIZED ACTION PLANS ROLLOVERS - IRAS INDIVIDUAL - FAMILY - TRUST

n usedtraditionallycostengineering-basedsegregationstudyhasbeentoreclassifyfederal

tax depreciation rates of real property from one lump-sum asset, listed in a fixed asset system as a “building” with a recovery period of 39 years, to multiple detailed entries that identify separate assets with shorter recovery periods, such as five, seven or 15 years. A study not only results in correctly identifying both the 1250 and 1245 components of a structure but also establishes a starting point for federal tax depreciation assets.

Over the last several years, there have been many tax law changes that affect how and why a competent study should be performed. Most recently (June 1), the Internal Revenue Service issued an updated Cost Segregation Audit Techniques Guide (ATG). The guide includes detailed descriptions of the different types of studies, what should be included in a competent study and all of the previously issued specific industry directives that show what assets might be typically considered as 1250 or 1245 property. It is important to note

Tax law changes over the last few years are numerous. Following are some significant modifications that have impacted the cost segregation industry.

that these documents are not considered to be law but should be used only as a guide.

The Tax Cuts and Jobs Act of 2017 (TCJA)

On Balance September | October 202230 wicpa.org

In regard to modified accelerated cost recovery periods (MACRS), real property will continue to be depreciated over 39 years for nonresidential property and 27.5 years for residential rental property.

The previous requirement for property to be “original use” has been eliminated. Now, in order to qualify for bonus depreciation, the original use does not begin with the initial property owner but when the building is placed into service with the current property owner (including acquired property). This means bonus depreciation now applies to both newly constructed buildings and used property acquired after Sept. 27, 2017. For example, a retail strip mall is acquired, and a cost segregation study is performed to identify all of

Cost Segregation Industry Update

Bonus depreciation was increased to 100% through Dec. 31, 2022, and then reduces to 80% for 2023.

{ Taxation | Cost segregation studies }

By Vorkapich,MarkASA

the appropriate 1250 and 1245 improvements. All those assets with a less than 20-year life will qualify (after Sept. 27, 2017) for 100% bonus depreciation and thus may be entirely deducted in the current year. Land improvements are considered 15-year property under MACRS (Asset Class 00.3) and thus will be able to be fully deducted in the current year; however, they need to be correctly identified and classified, and a proper cost segregation study accomplishes this.

Under these rules, the taxpayer can end depreciation of building components upon removal and recognize a loss. A proper cost segregation study includes costs by building system and will facilitate a taxpayer’s accurate reporting of losses when the component is disposed. In the case of existing property, the study should take into consideration the taxpayer’s fixedasset accounting of the building’s historical cost and aid in the identification of disposals that will occur as a result of the new capital improvements.

31On Balance September | October 2022wicpa.org

The Protecting Americans From Tax Hikes (PATH) Act of 2015 introduced the category of Qualified Improvement Property (QIP) as any improvement to an interior portion of a building that is nonresidential real property, as long as that improvement is placed in service after the building was first placed in service by any taxpayer (Section 168(k)(3)). It specifically excludes expenditures for (1) the enlargement of a building, (2) elevators or escalators and (3) the internal structural framework of a building. The QIP provisions are effective for property placed in service after Dec. 31, 2015.

“

The QIP technical correction

The numerous tax law changes have impacted how a cost segregation study is performed and its methodology. It has become very complex when taking into account all of the different modifying rules. An engineering-based study that takes all of these rules into consideration is an essential part of the process in order to not only correctly identify the significant depreciation deduction, which will offset taxable income, but also correctly set up the starting point for federal tax depreciation.

Mark Vorkapich, ASA, is the director of cost segregation services at Gladstone Strategies & Solutions in Milwaukee. He has been performing cost segregation studies for over 20 years. Contact him at 414-418-8953 or mvorkapich@gladstonestrategies.com.

elevators, fire protection and alarm systems, security systems, gas distribution systems and other structural components identified in published guidance.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides a technical correction for QIP property, allowing bonus depreciation or special straight-line MACRS depreciation over 15 years instead of 39 years, while making the change retroactive to Jan. 1, 2018. Net operating loss generated by the additional depreciation may be carried back for up to five years to recover taxes previously paid. Going forward, all QIP property is eligible to be deducted at a rate of 100% (2022) and 80% (2023).

In addition to defining the unit of property for tracking expenditures, the IRS has separately issued regulations (IRC Section 168) detailing the rules for dispositions and partial dispositions of depreciable assets that include building structural components. Prior to Jan. 1, 2012, losses were not allowed for retired building components; consequently, the replacement of building components resulted in the continued depreciation of both the replaced and replacement property. The IRS has established a facts-based approach to determining whether work performed on a building or leasehold improvement should be considered a deductible repair or a capital expense.

The TCJA eliminated the separate definitions of qualified leasehold improvements, qualified restaurant improvements and qualified retail improvements. These have all been replaced with the general grouping of QIP. The depreciable life of QIP was to be reduced from 39 to 15 years, with 100% bonus depreciation being available for all assets with a life of 20 years or less. Unfortunately, Congress forgot to give QIP a 15-year life, and it remained 39 years and was not eligible for 100% bonus depreciation. As a result, the taxpayers who spent $2 million on qualified interior improvements to their property did not receive a $2 million deduction in that current year but had to depreciate the entire amount straight-line over 39 years.

Final regulations of Section 263(a)

Under the final regulations of Internal Revenue Code (IRC) Section 263(a) (effective Jan.1, 2014 — also see T.D. 9636), a building and its structural components are considered a single unit of property. The “unit of property” for buildings consists of the building structure and building systems — which include the heating, ventilation and air conditioning system, plumbing systems, electrical system, all escalators and

Over the last several years, there have been many tax law changes that affect how and why a competent study should be performed.

Tammy J. Hofstede, WICPA president & CEO, stated, “LeRoy brought many gifts and influence to the profession, our members and staff — including his mentorship, support and encouragement to me personally. I attribute my career and success to what he taught me about accounting, business and advocacy. He will not be forgotten.”

memorials

On Balance September | October 202232 wicpa.org

LeRoy C. Schmidt, CPA (1941 – 2022)

LeRoy is survived by his wife of almost 57 years, Judy; three daughters: Dawn Stoughton, Debra Schmidt and Susan (Tom) Dwyer; five grandchildren and one great-grandchild; his sisters, Marie Gallagher and Marilyn (Dick) Musser; and his brother, Bill (two brothers preceded him in death). LeRoy will also be missed by his nieces, nephews, and other relatives and friends, as well as the many WICPA members and employees who worked with him over the years.

The 2018 WICPA Past Presidents and Executive Directors.

LeRoy at the WICPA Brookfield office.

LeRoy at the 1996 150-hour bill signing.

LeRoy C. Schmidt, CPA,

He also helped to establish the Young Entrepreneurial Scholars (YES) program in collaboration with the National Association of Black Accountants (NABA) and Bill Coleman, CPA. Scholarships through the WICPA Educational Foundation were renamed to the LeRoy C. Schmidt 150-hour Scholarship after his retirement from the WICPA.

Memorials to LeRoy may be made to the WICPA Educational Foundation, the Alzheimer’s Association or St. John Vianney Church in Brookfield.

Kenneth J. (Ken) Brosig, CPA (1947 – 2022)

Bradford was a member of Fort Winnebago Masonic Lodge #33 F&AM, Portage, and enjoyed traveling the U.S. with his mother after retirement. He is survived by a niece and nephew, other relatives and many friends.

career in accounting, he started K.A. Larsen Consulting, which he operated until recently. Larsen served as an outside director of Denmark State Bank and Denmark Bancshares Inc. and was very active at Atonement Lutheran Church. He is survived by his loving wife, Carole; two children; three grandchildren; two brothers and three sisters; and many other relatives and friends.

memorials

Dennis Sampson, CPA, age 77, passed away on Tuesday, April 12. Born and raised in Pennsylvania, he met his wife during a study abroad program in Germany in 1964. Sampson graduated from Allegheny College and went on to earn a Master of Library Science degree at Western Michigan University. While working as a librarian at Indiana’s Manchester College, he completed an MBA from Ball State University. Sampson and his wife moved to Wisconsin in the early 1980s, and Sampson embarked on a career with the American Baptist Homes of the Midwest, retiring while serving as director of Tudor Oaks Senior Living Community in Muskego. In retirement, he served as interim director or director for several Waukesha County libraries and senior living communities and also prepared taxes seasonally as a CPA with Nolan Accounting. He served on many boards and committees, including American Baptist Churches of Wisconsin, Milwaukee Christian Center, Pewaukee Village Board, Whitnall Park Rotary Club, Friends of Boerner Botanical Gardens, Pewaukee Area Historical Society, Pewaukee Public Library Foundation and the Community Development Block Grant Committee. He is survived by his wife of 55 years, Kathy; one son and two daughters; three grandchildren; a brother; and other relatives and friends.

John Hager, CPA, JD, age 63, passed away on Monday, April 18. He was a founding member of the law firm Hager, Dewick & Zuengler S.C. in Green Bay. Hager received his accounting degree from Marquette University in 1979 and his Juris Doctorate from Marquette University Law School in 1982. He was very proud of having founded and managed two business and estate-planning law firms in the Green Bay area, both of which grew to be among the largest in northeastern Wisconsin. Hager was a supporter of his community in many ways, including serving as coach of his children’s sports teams in De Pere. He was a recipient of several awards recognizing his community involvement, including the Green Bay Packers Community Quarterback Award in 2013 and the Wisconsin Hospital Association Award in 2017, both of which recognize the extensive and lifelong involvement he had at St. Vincent Hospital, St. Mary’s Medical Center and Prevea Clinic. In 2020, Hager received the Leo Frigo Award from the Green Bay Area Chamber of Commerce Leadership Green Bay Program. Hager is survived by his wife of over 40 years, Charlotte; three children; three grandchildren; a sister; nieces, nephews and other extended family members.

Kenneth J. (Ken) Brosig, CPA, age 74, of De Pere, passed away on Tuesday, April 19. Brosig graduated in 1965 from De Pere High school, where he was named All-Metro on the football team. After graduating from the University of Wisconsin–Whitewater in 1969 with a degree in accounting, he earned his CPA certificate. Three months after graduation, he was drafted into the U.S. Army and served at Ft. Riley (Kansas) from 1969 to 1971. Brosig worked for the Wisconsin Department of Revenue as a tax auditor for 33 years, retiring in 2003. He is survived by his wife of 48 years, Janet; three sons and one daughter; six grandchildren; one brother and two sisters; many nieces and nephews; and other relatives and friends.

Kenneth A. Larsen Sr., CPA, CGMA, 71, of Green Bay, passed away on Friday, May 13. Larsen was a graduate of Denmark High School and attended Northern Michigan University, earning his Bachelor of Science degree in accounting. After graduation, he passed the CPA Exam and became licensed as a CPA. He began his career in 1973 as a senior accountant with Jonet, Fountain, VandeLoo and Glaser CPAs in Green Bay. In 1976, he joined the firm of Shinners, Hucovski and Co. S.C. in Green Bay. In 1995, Ken became the CFO of Hoida Inc. and HDM Inc. in De Pere. From 2006 to 2008, he served as CFO of Portside Builders Inc. Coinciding with his full-time

Kenneth A. Larsen Sr., CPA, CGMA (1951 – 2022 )

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 Marcia Tillett-Zinzow at mtzinzow@icloud.com.

33On Balance September | October 2022wicpa.org

Dennis Sampson, CPA (1944 – 2022)

Bradford Macfarlane, CPA (1955 – 2022)

Bradford Macfarlane, CPA, age 67, of Portage, passed away on Sunday, April 17. Born and raised in Beaver Dam, Macfarlane attended UW–Madison, graduating with an accounting degree in 1977. He obtained his license as a CPA in 1982 and went to work as an accountant for Cost Cutters, which is now owned by Minneapolis-based Regis Corp.

John Hager, CPA, JD (1958 – 2022)

On Balance September | October 202234 wicpa.org { Human Resources | Recruiting & retention }

Candidates’ interest: 59% — Fully remote 5% — Fully in office 19% — Hybrid 12% — Hybrid or fully remote 5% — Hybrid or fully in office Companies’ expectations: 14% — Fully remote 53% — Fully in office 33% — Hybrid

By Beth Colson, CPA and

Why employers are hesitant to offer remote or hybrid opportunities

35On Balance September | October 2022wicpa.org

ne of the biggest shifts in the labor market in a generation is the return-to-the-office debate. Companies want employees back in the office, and employees want fully or partially remote opportunities. At Truity Partners, we call this “The Great Disconnect.”According to our research on our own corporate and individual clients, 90% of candidates are looking for fully remote or partially remote (hybrid) arrangements. In contrast, only 47% of the companies we are working with are offering fully remote or hybrid work environments. Compare the 59% of employees who want to fully work from a home office with the 14% of employers interested in providing that, and you have The Great Disconnect.

We are experiencing an “employee’s market” because the demand for talent exceeds the supply and qualified candidates have the power to command salaries and benefits that were unheard of just a few years ago. Organizations unwilling to consider flexible work arrangements as one of these benefits are taking an already tight labor market and shrinking it further.

How businesses can bridge the employment gap with flexible remote arrangements

Understandably, many of our corporate clients are hesitant to embrace a remote work environment. Here are some of the common arguments we “Coachinghear:isa big piece of it. If you are remote, you aren’t directly next to a senior person who can help answer questions.”

We continue to monitor this dynamically changing environment. Here are the early statistics from our clients and candidates.

Respondentsstress.

According to Mental Health America (MHA), the general process Americans go through just to get to and from work every day can take a toll on mental health. The average commute time in the U.S. is almost 27 minutes each way. According to MHA’s survey, 71% of respondents said they’d like to work from home to reduce commuterelated

{ Human Resources | Recruiting & retention }

On Balance September | October 202236 wicpa.org

• “How can I create and maintain a good culture if employees are never all together?”

When employees sit down in their home offices to work, they work. They don’t spend office time making and traveling to appointments; they can be home for contractors or go to appointments when convenient and make up the time

Why do employees want remote or hybrid opportunities?

• “It’s hard to collaborate and get to know your team when everyone is working from a home office. This makes it hard to best serve our clients.”

A recent study by Forbes reported 92% of respondents think having a flexible job makes them happier persons in general.Individuals feel they’ve proven they can be more effective when given the freedoms and flexibility of a remote work arrangement. They maintain they often commit more time to their employer by saving time getting ready and dropping the commute. They assert they’re more in control of their time and, therefore, can be more motivated, creative and productive.

• “If employees are not in the office, how do I know they are working? They just don’t work as hard when they are working remotely.”

Do any of these comments resonate with you? Likely so. However, it’s time for employers to take another look at the advantages of offering flexible work environments — to their companies as well as employees — or they will forgo many talented candidates.

to MHA’s survey also said that remote work could help them improve productivity by reducing distractions during the workday, including interruptions from colleagues and dramatics of office politics, allowing for a quieter work environment and giving them a more comfortable and personalized work environment.

Studies show that having flexibility in when and where to work:•improves mental health.

• fosters creativity because employees are in a comfortable, less stressful environment.

• enhances productivity because professionals can work when they can be the most focused.

How to successfully implement and manage remote work environments

later in the day. Parents who work from home can take their children to day care or be home to get them on and off the school

Settling “The Great Disconnect” is a start to solving the talent shortage

Offering remote opportunities is one way to keep current employees happy and lure new talent into open positions. However, simply offering remote arrangements isn’t a full solution to attracting and retaining the best candidates. It’s just a piece of it. The bottom line is you need to care for your employees. Gone are the days of competing for who can put in the most hours during busy season or who can get into the office earliest or stay latest. Today’s successful employers are those that nurture a good culture of teamwork and collaboration — and care for their employees beyond work.

Beth Colson, CPA, is senior director and partner at Truity Partners Inc. in Milwaukee. Contact her at 414-777-5301 or beth.colson@truitypartners.com. Abby Ashman is a senior recruiter at Truity Partners Inc. in Appleton. Contact her at 920-739-3318 or abby.ashman@truitypartners.com.

“ Offering remote opportunities is one way to keep current employees happy and lure new talent into open positions.

Preset online weekly working sessions, in which all team members are required to participate, are an effective success strategy. Not only does this hold members accountable for getting their work done; it also aids in collaboration and helps everyone feel connected. While some of our clients hold these meetings daily, this frequency can become overwhelming and seem like micromanaging. You’ve hired educated, hardworking professionals. You need to trust they will complete their work — you’ll know if it is not getting done.

“Office hoteling” has become a popular option for larger companies looking to save dollars on office space while implementing flexible work arrangements. Hoteling means that employees share offices or workspaces with others who are not 100% on-site. They schedule or reserve their use of workspace when they need it. This helps companies avoid paying for unused square footage when employees are working from their home offices.

37On Balance September | October 2022wicpa.org

employees place a high value on travel. If they can do their work from anywhere, why wouldn’t they? Unlike past generations — whose work defined their time, their friendships and their lives — today’s generation of employees is more well-rounded and concerned with what else they do beyond work.

Youngerbus.

The most successful arrangements we have seen with clients are those that are partially remote. These companies offer a hybrid schedule with flexibility. Often, they require employees be on-site one or two days during the week and

offer flexibility for hours within the business day. Some have set in-office days. For example, everyone is required to work in the office every Tuesday and Thursday, and they have the option to work remotely on other days.

The important thing to keep in mind is that “flexibility” means just that — this is not a one-size-fits-all arrangement. The best and most successful work environments are those where employees can choose what works best for them. Be flexible and equitable with your offerings, but understand that you won’t please everyone. Aim to please the broadest audience possible.

customer demands. Today’s accountants need to continuously adapt, evolve and improve to keep up with business’s accelerated pace of change. Continuing education is a tool accounting professionals can equip themselves with to build a future-ready career. CPAs should not view continuing education as a checkthe-box compliance requirement but as a critical component of their professional development toolkit to make them more informed, engaged, strategic and value-driven professionals.

On Balance September | October 202238 wicpa.org { Professional Development | Continuing education }

Continuing Education

A vital component of an accountant’s professional development toolkit

By Jessica E. McClain, CPA, CISA, PMP, CITP, CGFM

here has been a seismic shift in the role of accountants; they now need to have broader knowledge and expertise beyond the traditional financial competencies. Gone are the days of accountants only reporting on historical financial information. Now they must navigate the complexity of today’s business landscape of regulatory changes, client needs, technological advancements, employee expectations, investor interests and

Change your career trajectory

thrive in the face of uncertainty. Additionally, the pandemic created the need for even certified and experienced accounting professionals to strengthen these skills to navigate the emotional and personal impact of the pandemic on employees. To succeed in this new world of work and build high-performing teams, skills such as critical thinking, collaboration and creativity will be needed. Training and webinars on managing hybrid teams; communication; leadership; and diversity, equity and inclusion can help accounting professionals improve their human skills in this new era of work.

Evolution of the accountant’s role

Human skills in the post-COVID-19 workplace

The pandemic has reshaped the definition of leadership. It showed that employees could be resilient and agile and

It is essential for accountants to be continuous learners and intentionally devote time to learning as part of their professional development journey.

Digital disruption

“

Another vital topic for CPAs to remain informed about is cybersecurity, especially in today’s hybrid work environment. Furthermore, digital disruption exploded because of the pandemic. This disruption has completely changed how many accounting firms and their clients and accounting functions operate. Thus, the need to improve one’s digital competency is crucial. CPAs can now immerse themselves in a wide range of technology-related topics to increase future-ready competencies. Learning higher-level skills such as robotics process automation, data analytics and business intelligence can help accountants perform better professionally, enhance client service and help their accounting function operate efficiently and effectively.

First printed in New Jersey CPA magazine (njcpa.org/newjerseycpa) and reprinted with permission from the New Jersey Society of Certified Public Accountants.

Continuing education can help with exploring new career opportunities and career transitions. For example, the explosion of environmental, social and corporate governance (ESG) has created new career opportunities for accounting professionals, including ESG reporting, investing and assurance services. In recent years, another specialty area that has grown is nonprofit accounting. There is a plethora of conferences and webinars that provide up-to-date information on trends, challenges and legislation focused on specific industries.

Today’s clients view accountants as business partners who provide strategic guidance in navigating complex business problems. Clients are experiencing a broad spectrum of challenges and risks, including increased scrutiny from regulators and investors; the pandemic’s impact on the supply chain; environmental, social and governance (ESG) issues; and cybersecurity. Additionally, revenue recognition, leases and goodwill impairment are just some of the recent accounting standard updates organizations have implemented. Accountants must remain abreast of these challenges, risks and changes and understand the resulting impact on their organizations and clients. The Financial Accounting Standards Board, the Association of International Certified Professional Accountants, accounting firms and state accounting societies offer free and low-cost training that provides timely guidance and resources to navigate these everevolving changes organizations and clients face.

39On Balance September | October 2022wicpa.org

It is essential for accountants to be continuous learners and intentionally devote time to learning as part of their professional development journey. Continuing education is critical to professional success, and with the many flexible options available, accountants can easily make continuing education a part of their professional development toolkit.

Jessica McClain, CPA, CISA, PMP, CITP, CGFM, is the chief financial officer at Girl Scouts of Nation’s Capital and can be reached at jessica.e.mcclain@outlook.com.

On Balance September | October 202240 wicpa.org

REACHING KNOWLEDGEABLE EXPERTS.

WHAT’S BETTER THAN CALLING ANY TIME YOU NEED ADVICE ABOUT PRACTICE SUPPORT AND RISK MANAGEMENT?

To learn about CAMICO or to receive a coverage quote, please contact Harris Hauptman.

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CAMICO ® policyholders know that when they call us, they’ll speak directly with in-house CPAs, JDs and other experts. We have dedicated hotlines for loss prevention, tax, and accounting and auditing issues. You can call as often as you need and consult with experienced specialists — all at no additional cost. No one knows more about the profession, because we provide Professional Liability Insurance and risk management for CPAs only — it’s all we’ve done for 35 years and why more than 8,700 CPA firms insure with CAMICO.

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NOMINATE SOMEONE YOU KNOW FOR AN EXCELLENCE AWARD! Young Professional Accounting Educator Accounting Student Business & Management CPA in Public Practice H H H H H H H H H Community WomanDiversityDistinguishedServiceCareer&InclusiontoWatch AWARDS 2023 WICPA Submit your nomination at wicpa.org/awards by Nov. 10, 2022. Recipients will be announced in January and honored at the Member Recognition Banquet & Annual Business Meeting on May 5, 2023.

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On Balance Magazine - Sept/Oct 2022

Articles inside

Shaping the next generation

LEADERSHIP

PROFESSIONAL DEVELOPMENT

TAXATION

Vol. 18 No

HUMAN RESOURCES

Cryptocurrency: The future of nonprofit generosity

Employers using artificial intelligence in decision making