On Balance Magazine - Nov/Dec 2020

November | December 2020 | Vol. 16 No. 5 A publication of the Wisconsin Institute of CPAs | wicpa.org

Intentionality and Inclusion: The Keys to Diversity Bill Coleman, CPA, CGMA, CITP, MBA | 8 Plus: Celebrate being a CPA | 4 Diversity strategies | 14 Unconscious bias | 18 CPA Exam changes | 36

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

November | December 2020 Vol. 16 No. 5

8 Features

Columns

8 Intentionality and inclusion: Keys to diversity Firms must do more to attract and retain minority staff to effectively serve clients in a changing business landscape. But first the pool must be enlarged.

By Marcia Tillett-Zinzow

28 BUSINESS LAW

Avoiding inadvertent termination of the S corporation election Tax advisors should help educate S corporation clients about potential termination situations.

By Alexandra J.C. Gregorski, MBA, JD

and John A. Sikora, JD

14 The push for racial diversity Organizations have done a great job of becoming more gender diverse.

What strategies are being used to enhance racial diversity?

By Ken Wysocky

32 TECHNOLOGY

The power of Excel Power Query The drudgery of manual data aggregation is time consuming and tedious. A powerful Excel tool can help.

By Pam Kirchen, CPA

18 Unconscious bias Bias: Everyone has it. But taking action to challenge and reduce unconscious bias is possible by using some effective strategies.

By Aaron Davis 22 Minding the other pandemic Amid the threat of COVID-19, CPAs could be facing another health crisis: a mental one. However, some small changes can make a big difference to mental resilience.

By Bridget McCrea

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36 Departments

36 THE PROFESSION

The CPA Exam is changing — again The AICPA Examination Team will introduce an updated CPA Exam later in 2020. What exactly is changing?

By Stephen McCarthy, CPA, MBA

3 Outlook | chair’s letter 5 Kudos | members in the news 6

In Touch | president & CEO’s message

21 Memorials | departed members 26 Welcome | new members

38 HUMAN RESOURCES

Best practices for working remotely Having a plan can make virtual meetings more productive and efficient.

By Christina M. Olear, CPA

Correction: In our May/June 2020 issue of On Balance, in the article titled “The evolving CPA profession,” we incorrectly listed DeeAnne Peterson, MBA, accounting professor at University of Wisconsin–Eau Claire, as a CPA. We apologize for this error.

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2020-2021 WICPA OFFICERS/BOARD MEMBERS Chair Wendi M. Unger, CPA

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: amanda@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 2020 On Balance.

Join us online!

Chair-elect Angela C. Thomas, CPA Past Chair Neil R. Keller, CPA/ABV, CVA Secretary/Treasurer Lucien A. Beaudry, CPA, JD Directors Jeff Dewane, CPA, CGMA, CMA, MBA John R. Heindel, CPA Daniel Holzhauer, CPA Ruth A. Kallio-Mielke, CPA Wendy A. Peters, CPA Steven A. Pullara, CPA Matthew J. Schaefer, CPA, CGMA Kyle R. Stephens, CPA

INSIDE STAFF

President & CEO Tammy J. Hofstede Design & Layout Brett Stallman Advertising Sue Daniels Editor Marcia Tillett-Zinzow Printing Delzer

AICPA Council Ryan J. Hanson, CPA, CGMA Neil R. Keller, CPA/ABV, CVA

ATTENTION! THE CURRENT CPE REPORTING PERIOD ENDS DEC. 31, 2021 Reporting Period: Jan. 1, 2020 – Dec. 31, 2021 CPE Requirement: 80 total CPE credits Ethics Requirement: 3 Ethics CPE credits

Visit wicpa.org/CPErequirements for updated information about CPE requirements.

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OUTLOOK | CHAIR’S LETTER “You are a member of a distinguished profession and an organization with a strong and successful history.”

New cause for taking pride in our profession

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lsewhere in this issue, you’ll read about the WICPA’s 115th anniversary, publicly marked with an official proclamation from the State of Wisconsin signed by Gov. Tony Evers, who declares the week of Nov. 16th CPA Week in Wisconsin.

Puff out your chest and raise a glass to celebrate! You are a member of a distinguished profession and an organization with a strong and successful history.

The WICPA is the second oldest professional organization in Wisconsin, preceded only by the State Bar of Wisconsin, which was founded in 1900. We can all be proud of our esteemed heritage, which began in 1905 and is carried on perpetually by the young CPAs and other business professionals who join our ranks every year.

To sustain this organization that offers us so much in the way of education, networking and friendship, we are obligated to support and nurture it with our active involvement: Attend WICPA events. Join a committee.

Volunteer for a board position. Utilize the excellent CPE program. Donate to the WICPA Educational Foundation that helps keep talent in the pipeline. Or give to the WICPA Campaign for Political Awareness (CPAC) and Legislative Involvement Fund (LIF) to help ensure the accounting profession continues to have a strong presence in Wisconsin when it comes to legislative and regulatory activities.

It is only our ongoing commitment and engagement that will help see the WICPA through another 115 years.

Just as we are proud of the organization that binds us together, we are also proud of our profession. In 2020, we should be prouder than ever, as CPAs have played and continue to play a critical role during the coronavirus pandemic.

Especially throughout the stressful months of March and April, we worked hard to stay abreast of the numerous and frequent — sometimes daily — changes to tax laws and

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CELE

BRATE

WISCONSIN NOVEMBER 16 - 20, 2020 deadlines, communicating the changes to our clients and employers, helping them navigate this difficult time in their businesses and lives with minimal panic even as we were trying to manage our own anxiety and that of our families.

While many people were either not working or working from home during that time, CPAs not only continued to work but often worked through the night to stay on top of the continual announcements from the IRS and Treasury.

That we were able to continue our work is largely due to the swift action and efforts of WICPA President & CEO Tammy Hofstede, who began working with Gov. Evers as soon as the Safer at Home order was announced to ensure that CPAs were included in the list of essential workers. This made it possible for us to continue to help our clients as well as to keep our staffs employed when so many were losing their jobs.

So as you puff out your chest and raise a glass to celebrate OUR week in Wisconsin, you can also pat yourself on the back for making it through a very challenging time.

Wendi Unger, CPA, is a partner with Baker Tilly in Milwaukee and the chair of the WICPA board of directors. Contact her at 414-777-5423 or wendi.unger@bakertilly.com.

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IN WISCONSIN Celebrate being a CPA!

By Tammy J. Hofstede

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he WICPA is celebrating its 115th anniversary this year by recognizing CPAs for their hard work and the impact they have on communities and businesses throughout Wisconsin.

WICPA members, firms and companies are the economic engines of our state’s economy. With high standards of ethics and professionalism, CPAs are critical to the vitality and prosperity of the state and responsible for the fiscal health and well-being of individuals, businesses and institutions.

We count on CPAs every day of the year, and so does Wisconsin. That’s why the WICPA has worked with Gov. Evers to issue a proclamation recognizing Wisconsin CPAs and designating the week of Nov. 16 as “Wisconsin CPA Week.”

Ways to celebrate Wisconsin CPA Week with us: • Post pictures, videos and information on your social media pages using the #WisCPAsWeek hashtag.

• Tag the WICPA in photos and videos on Facebook (@WisCPAs) and Twitter (@WisCPAs).

• Recognize Wisconsin CPA Week in your email signature using one of our downloadable #WisCPAsWeek graphics at wicpa.org/WisCPAsWeek.

• Remind your clients in an email why they can count on you.

• Are you a business leader? You can celebrate your CPAs during the week too! o Send your team a note thanking them for their valuable work. o Surprise them with gift cards or other gestures of appreciation. o Host a virtual happy hour or luncheon.

We are proud of the work you do, the difference you make and the way you represent our CPA profession. We celebrate YOU, our members!

Want to learn more about Wisconsin CPA Week? Read Gov. Evers’s proclamation below.

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

Certified Public Accountant Week Proclamation WHEREAS, the fiscal health and well-being of Wisconsin’s people, businesses, and institutions is critical to the continued vitality and prosperity of the Commonwealth; and WHEREAS, the Wisconsin Institute of Certified Public Accountants has enhanced the growth and development of the CPA profession for 115 years to be a vital protector of the public interest and working for the good of the profession; and WHEREAS, Certified Public Accountants (CPAs) in Wisconsin must maintain high standards of ethics, professionalism, and knowledge by maintaining and enhancing their skills through continuing professional education; and WHEREAS, CPAs provide accounting and auditing services, management advisory services, and individual as well as corporate tax and financial planning advice; and WHEREAS, CPAs in Wisconsin draw upon their unique knowledge and experiences to provide sound, reliable financial counsel in order to protect and promote the growth of business, the soundness of government operations, the excellence of higher education, and the confidence of investors in the Commonwealth of Wisconsin and throughout the United States of America; and WHEREAS, Certified Public Accountant Week recognizes CPAs for their hard work and the positive impact they have in communities and businesses throughout Wisconsin; NOW, THEREFORE, I, Tony Evers, Governor of the State of Wisconsin, do hereby recognize November 16-20, 2020, as CERTIFIED PUBLIC ACCOUNTANT WEEK in our COMMONWEALTH OF WISCONSIN, and I call this observance to the attention of all our citizens.

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kudos

Amanda Farley

Tanner Hayes

Kaitlin Kubiak

Justin Kudick

Heather Acker, CPA, a partner with Baker Tilly Virchow Krause LLP, successfully ran the Boston Marathon — in Waunakee and Westport. The persistent COVID-19 pandemic necessitated a virtual race, and Acker was among some 15,000 runners who ran the race on their own during an allotted time frame in September.

Amanda Farley, CPA, has been promoted by Hawkins Ash CPAs to tax supervisor in the firm’s Green Bay office. Farley began her career with the firm as an intern in 2014.

Todd W. Gray, CPA, PhD, a senior consultant with von Briesen & Roper s.c., will serve as interim superintendent of schools for the Palmyra-Eagle School District. Prior to joining von Briesen & Roper, Gray was superintendent of the Waukesha School District for 12 years.

Tanner Hayes, CPA, has been promoted by Hawkins Ash CPAs to senior associate in the firm’s La Crosse office. Hayes has been with the firm since 2017.

Kelli Keys, CPA, has joined Vrakas CPAs + Advisors as an audit principal. She has 15 years’ experience providing assurance and consulting services, primarily to construction contractors and nonprofits Kaitlin Kubiak, CPA, has been promoted by Hawkins Ash CPAs to senior associate in the firm’s Green Bay office. She started as an intern with the firm in 2017.

Justin Kudick, CPA, has been promoted by Hawkins Ash CPAs to supervisor in the firm’s Green Bay office. Kudick joined the firm in 2015.

Kyle B. Mair, CPA, has been named partner by Baker Tilly Virchow Krause LLP. He currently works for Baker Tilly Advantage, a team that offers payroll and human resources solutions for small businesses.

Nicole Malueg, CPA, has been promoted by Hawkins Ash CPAs to supervisor in the firm’s Manitowoc office. Malueg began her career with the firm as an intern.

Nicole Malueg

Emily McGuire

Holly Muehl-Pett

Emily McGuire, CPA, has been promoted by Hawkins Ash CPAs to supervisor in the firm’s Green Bay office. She joined the firm in 2016.

Holly Muehl-Pett, CPA, EA, has been promoted by Hawkins Ash CPAs to senior manager in the firm’s Mequon office. She joined the firm in 2018.

Isaac Pooler, CPA, has been promoted by Hawkins Ash CPAs to senior associate in the firm’s La Crosse office. Pooler has been with the firm since 2017.

Marcus Schmidt, WICPA member and accounting major at Carroll University, is one of 50 recipients of a $1,500 AICPA CPA Exam Scholarship.

Mary Jo Stahl, CPA, MST, has joined Prairie Trust, a division of Waukesha State Bank, as fiduciary tax administrator. She has more than 25 years’ experience and was previously accounting and tax manager for Elite Sports Clubs.

Peggy Stebbins, CPA, has been appointed chief financial officer for Ixonia Bank. She previously served as chief accounting officer and controller for a large, publicly traded regional commercial bank and as controller for two regional banks.

ORGANIZATION NEWS Berndt CPA LLC made Inc. magazine’s annual Inc. 5,000 list, ranking No. 3,842. The list is the most prestigious ranking of the nation’s fastest-growing private companies and represents a unique look at the most successful companies within the American economy’s most dynamic segment: its independent small businesses. “Berndt CPA LLC is proud to be recognized as the 39th fastest-growing private company from the state of Wisconsin on this year’s list,” said Bruce D. Berndt, CPA, CGMA, managing partner.

Want your new job, promotion or award mentioned in Kudos?

H Email your announcement and photo in JPG format to mtzinzow@icloud.com. H

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IN TOUCH | PRESIDENT & CEO’s MESSAGE “The goal is to transform the CPA licensure model to recognize the rapidly changing skills and competencies the practice of accounting requires today and will require in the future in a technology-driven marketplace.”

CPA Evolution

I

n 2018, stakeholders across the profession — including CPAs working in firms of all sizes across the country, CPAs working in business and industry, members of the accounting academic community, volunteers, students, technology experts, state boards of accountancy and others — provided feedback on evolving CPA licensure. In May 2020, a joint effort of the AICPA and the National Association of State Boards of Accountancy (NASBA) was approved to design and implement a new approach to CPA licensure.

The goal is to transform the CPA licensure model to recognize the rapidly changing skills and competencies the practice of accounting requires today and will require in the future in a technology-driven marketplace. As many processes and procedures become automated, entry-level CPAs are now performing more procedures that more experienced staff previously performed and that require deeper critical thinking, problem solving and professional judgement.

The “new” Uniform CPA Examination is still expected to be four sections: Candidates must pass three core sections and one discipline. In the model, all candidates would be required to demonstrate knowledge of a strong core in accounting, auditing, tax and technology. Then each candidate would choose a discipline in which to demonstrate their deeper skills and knowledge. Regardless of discipline, this model leads to full CPA licensure, with rights and privileges consistent with those of any other CPA. A discipline selected for testing would not mean the CPA is limited to that practice area.

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CPA Licensure Model This is progress toward the goal of positioning the CPA profession for continued strength and relevance in a constantly evolving business environment. The new CPA Exam is expected to launch in January 2024.

1. Strong core with accounting, auditing, tax and technology 2. Deeper knowledge in three primary disciplines 3. Reflects reality of practice 4. Adaptive and flexible 5. One CPA license 6. Enhances public protection

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

wicpa.org

Continuous testing now available to CPA Exam candidates No more closed testing windows! Effective July 1, 2020, Wisconsin — along with over 40 other jurisdictions — began offering continuous testing to CPA candidates.

Continuous testing allows candidates to sit for the CPA Exam anytime during the year. The only restriction is that candidates must wait to receive scores from prior attempts of the same section before sitting again.

Check out our featured member benefit providers Becker Since launching its CPA Exam Review over 50 years ago, Becker Professional Education has been committed to providing students the tools they need to prepare, pass and be empowered to excel – on exam day and at every level of their professional careers.

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These affinity partners and more can be found at wicpa.org/discounts.

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Intentionality and Inclusion: The Keys to Diversity An interview with Bill Coleman, CPA, CGMA, CITP, MBA

By Marcia Tillett-Zinzow

T

he color of America is changing – and with it, the color of our business communities. Over a recent 10-year period, minority business enterprises accounted for more than 50% of the 2 million new businesses started in the United States, according to the U.S. Senate Committee on Small Business & Entrepreneurship. The committee estimates there are now 4 million minority-owned companies in the U.S. To meet the demands of minority-owned companies, the color of the CPA profession must also change. Black, Latino and other minority individuals and businesses owned by people of color will be looking for firms they’ll feel comfortable working with: in other words, those that have professionals who look like them and share common life experiences.

Some CPA firms are becoming more diverse, according to the AICPA’s 2019 Trends Report, which states that “racial/ ethnic diversity has increased, with the highest percentage of nonwhite enrollees to date.” But there’s more to diversity than that. One of the biggest problems has been the small number of minority CPAs or accountants in the pipeline from which organizations hire. And the reason for that is also in the

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AICPA statistics, which show that the number of minorities in college accounting programs dwindles between freshman year of college and graduation and then again between graduation and sitting for the CPA Exam. What can be done to increase these numbers?

Two words: intentionality and inclusion. In the following interview with longtime WICPA member Bill Coleman, CPA, GGMA, CITP, MBA, founder of Coleman & Williams CPAs Ltd. — an African American CPA firm in Milwaukee — these concepts become more clear.

Q: Can you give our readers a brief professional bio?

I came to the United States of America from the Republic of Ghana [in western Africa] when I was 24 years old. I enrolled as a student at DePaul University in Chicago, where I later earned both my bachelor’s degree in accounting and my MBA. In 1984 I moved to Milwaukee, where I worked for Touche Ross (now Deloitte) and then for Bersch & Co. before starting Coleman & Williams in 1990. I joined the WICPA in 1986.

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Photography by John Sibilski

As a foreign student at DePaul University, Coleman first learned that accountants could become certified in a mandatory CPA Exam review class his senior year.

Q: What can you tell us about your involvement with the WICPA? When I first got here and started going to WICPA meetings, people in my community said, “How can you sit in a meeting of 200 people and be the only Black person there?”

I told them, “If I don’t do it now, then when am I going to be able to do it?” You have to make an effort. I tell my white friends, “You have to make an effort to make a Black friend, just as I made the effort to make a white friend.”

n Diversity &Inclusio Impact Award leman, CPA, William B. Co , MBA TP CI A, M CG

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Once I joined the WICPA, I became very involved. I have served on both the WICPA board of directors and the WICPA Educational Foundation board as well as on several committees, including Accounting Careers. I received the Community Service Award in the mid-1990s, and in 2012 I received the Achievement Award. More recently, in 2018 I received the Diversity and Inclusion Award for my work building the Young Entrepreneurial Scholars (YE$) program, which is a collaboration between the WICPA, the National Association of Black Accountants (NABA), the University of Wisconsin–Oshkosh and University of Wisconsin–Milwaukee.

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Photo courtesy of the WICPA

Bill Coleman with AICPA Past Chair Kimberly Ellison-Taylor (guest speaker) and YE$ and Metro student chapter members at the 2019 YE$ Diversity Program luncheon.

interested in accounting with exposure to the profession through mentoring and support. The program encourages college enrollment and eventual careers in business or accounting. UW–Oshkosh offers a two-week, on-campus residential experience, during which students take some basic classes and participate in college readiness workshops. At the program’s conclusion, they can apply for a six-week internship with a Milwaukee-area business. The YE$ program option at UW–Milwaukee is part of their six-week Future Success Program, during which students receive opportunities to improve study skills and receive academic advising.

Q: Is YE$ just for high school students?

No. The high school is the pipeline. The program has been successful in getting students into accounting degree programs, but we saw some of them floundering once they were there.

So four years ago, NABA helped us establish a Metro Student Chapter that provides minority college students with ongoing support, encouragement and networking. We started with students from Alverno College, Cardinal Stritch University, Marquette University and UW–Milwaukee. The program is still in its infancy, but we have graduated students from it already.

Q: Why do you think some minority students struggle to complete the accounting program?

There is a twofold reason for this. One part is the structural barriers that exist in the curriculum. For example, at one university, the accounting majors have business courses in the first two years of the program but no bookkeeping courses.

They receive no accounting courses until their junior year,

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Photo courtesy of the WICPA

Q: What is the YE$ program?

The YE$ program provides students of color who are

Coleman & Williams Ltd. staff members with Coleman at the 2017 YE$ graduation luncheon.

when they enter the School of Business — and right away they are hit with intermediate accounting, which is difficult for even the very brightest students. Another university's program introduces students to bookkeeping in the first or second year, but it still doesn’t prepare them well for the intermediate class — and this is the class that can make or break you.

The other part is loneliness. Sometimes there is only one Black or Latino person in a class. It is very, very rare to see two or more minority students from the same high school in a college class.

Imagine yourself in a room with 25 minority students, and you are the only white student there. This can be a very lonely situation for minority students who — when faced with the additional burden of a very challenging course in their junior year — may just say, “I don’t need this. I’m going to drop it and go into something else.” Often, they do. That’s why we’re seeing significantly fewer minorities graduating with an accounting degree.

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Q: Is loneliness something a minority CPA or non-CPA accountant can experience in a job situation?

Yes, it definitely is. Loneliness can be overwhelming for a young Black or Latino professional who is trying to do their job in an environment that they may feel is intimidating or hostile to them. Most of the time they are the only person of color, or perhaps one of just a few.

Photo courtesy of the WICPA

In addition, oftentimes they must contend with comments from co-workers or managers that may be made in complete innocence. However, the comment may be hurtful or offensive to a person of color. For example, a question about someone’s food, their hair or the way they talk, or even their name. There needs to be sensitivity in the workplace that currently is not always there, and we need to understand other people’s cultures in order to understand each other and work together harmoniously.

Q: What other issues may be responsible for minorities leaving a firm or an accounting program?

One really huge thing in both education and the workplace is a lack of support and direction. For example, in a firm or in an accounting department, a young Black professional may need more direction but feel they can’t ask for it. Audit seniors are on a career track, and they are much more concerned about getting the work done than they are about helping a person of color feel comfortable or succeed in their job. Most white seniors have not been trained on matters of diversity and inclusion and may not know how to deal with an associate who does not look like them. I know of one young person of color who recently left a large accounting firm because he did not have the support and direction he needed. You see, diversity is one thing, but inclusion is the key to maintaining diversity. There is a need to build an inclusive culture within CPA firms. That starts at the top with the managing partner of the firm or the CEO of the company.

“

You see diversity is one thing, but inclusion is the key to maintaining diversity. There is a need to build an inclusive culture within CPA firms.

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Photo courtesy of the WICPA

Where college is concerned, guidance is the main problem. You must understand that many minority students are the first persons in their families to go to college. So they haven’t had the advantage of being coached by a parent or other relative or a friend who has already had the college experience. There is no one to guide them. Some students don’t even know what courses they should take. I have seen this! They will say, “This is what my advisor told me,” and their schedule includes a class in tax, a class in financial accounting and a class in financial reporting. This is academic suicide for these students! This is where minority students are weeded out — and, with intentionality, WICPA members can help them avoid falling into the abyss.

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Q: What can WICPA members do?

Q: How would this help the profession?

A WICPA member can in essence “sponsor” a student and then make an intentional effort to provide support and guidance to that student from freshman year through graduation — and possibly beyond. We need WICPA members to provide support to these young people of color who are at Marquette, UW–Milwaukee, UW–Oshkosh and other campuses.

Let’s face it, the color of America is changing whether we like it or not. If we want the color of the profession to change with it, this is what we must do. The profession must become more diverse and inclusive if we are to serve our clients — because the color of business is also changing. We need to have people in the firms who look like their clients so their clients will feel comfortable when dealing with the firm.

Q: What would be required of a WICPA member?

Number one is “intentionality.” It has to be their intention to help that student graduate. In the absence of intention, it’s all talk. We have to make a commitment to be with the students on a regular basis, answering questions and mentoring them. We can’t just check in with them at grade report time — because by that time, it’s too late. If we want them to graduate with accounting degrees so we can hire them, then we have to be there with them like a mentor, a role model and a coach to help them succeed. We have to treat them as we would treat our own children. An attitude of “This is my student, and I’m going to do whatever I can to help them graduate” would make a huge difference — because you want them to graduate with a B+ or better. Many of these students don’t know why a C isn’t good enough. It’s a passing grade, isn’t it? But with a GPA of 2.0, they won’t find work in public accounting or an accounting department. They don’t know that, and nobody is telling them.

I think we have a challenge here that has already been met by the law, medical and engineering professions. They’ve been able to become diverse. Why can’t we do it? We need to answer that question and take the appropriate action so we don’t have to ask it anymore.

For more information Learn more about the YE$ program at https://www.wicpa. org/give/edfoundation/activities. If you would like to talk with Bill Coleman about how to sponsor a student of color and help them succeed in graduating from college and becoming a CPA, please contact him at 414-278-0170.

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

Contact her at mtzinzow@icloud.com.

YOU have the opportunity to impact thousands of students and educators in Wisconsin.

Through your contribution to the WICPA Educational Foundation, you can help us reach students and educators in high school and college to create awareness about the accounting profession.

As the end of 2020 draws near and you are thinking about tax planning, consider donating to the WICPA Educational Foundation.

Questions? Contact Tammy J. Hofstede, WICPA President and CEO at tammy@wicpa.org.

To contribute, visit wicpa.org/EF. 12

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THE PUSH FOR

RACIAL DIVERSITY Wisconsin accounting firms are adopting new strategies to reduce industry-wide racial disparities.

By Ken Wysocky

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bout 30 years ago, Karin Gale, CPA, was among 17 employees starting their first day at a Big Four accounting firm in Milwaukee. She vividly recalls that a dozen of those first-day employees were men, and only five were women. And there were no female partners at the firm.

Karin Gale, CPA

Today, Gale is a principal in the Milwaukee office of CLA, where she’s worked for 15 years. And 44% of the accountants there are female, she said.

“When I first started my career, I was a minority as a female,” she said. “And the leadership roles at that time all were males.

But as we’ve seen over time, that’s no longer the case.”

Gale’s experience is a microcosm of a larger trend toward gender equality in accounting during the last several decades.

Today, more than half of all accountants nationwide are females, and there’s a roughly 50/50 split between male and female college students studying accounting, according to industry statistics.

But while all this is good news, it also raises a compelling and particularly timely question: Can the accounting industry achieve the same results in racial diversity?

Wisconsin accounting firms are striving to do just that.

From mentoring programs and unconscious-bias training to empathy sessions, community-outreach programs and new recruitment strategies, firms are working to make racial diversity as commonplace as gender diversity.

“Our goal is to create an environment that supports the advancement and retention of underrepresented minority professionals in our practice and in our profession as a whole,” said Ruth Kallio-Mielke, CPA, a managing director in the Milwaukee office of Deloitte Tax LLP, as well as a member of the organization’s leadership team. She’s been at Deloitte for 18 years and has been an accountant for more than 30 years.

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“A diverse workforce leads to continued innovation, so we’re emphasizing new approaches to strengthen our inclusive culture and achieve representation across cohorts,” she said. “We are continuously exploring recruiting strategies to ensure we are attracting diverse candidates—such as Ruth Kallio-Mielke, our Deloitte Tax Scholars program, which CPA grants scholarships for up to ten eligible students attending historically black colleges and universities (HBCUs) to cover tuition costs for an accredited master of accounting program, and our HBCU Emerging Leadership Scholarship Program, a multi-day program for select students attending an HBCU interested in a career in Accounting, Business, Technology, Analytics, or a STEM related field to provide them with first hand exposure to the professional services industry and the opportunity to be considered for a scholarship.”

Lindsay Hammerer, CPA, an audit partner at KPMG who’s been with the firm for 32 years, concurs, noting that clients now demand diversity. “They expect us, as their service provider, to present a diverse team,” she said.

“Historically, if you look at the history of Lindsay Hammerer, public accounting, it’s very much whiteCPA male dominated,” she continued. “So as clients evolve, they expect us to evolve, too.”

Furthermore, KPMG partners rotate in accordance with the various professional standards and regulatory requirements.

And while selecting successor partners, it’s not uncommon for clients to demand a diverse slate of candidates, Hammerer said.

“We’re very focused on driving more diversity and inclusion because it’s just the right thing to do,” she said. “It’s also critical to strengthening our culture, plus our clients also are demanding more diversity. We’re very sensitive to that.”

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Our goal is to create an environment that supports the advancement and retention of underrepresented minority professionals in our practice and in our profession as a whole.

– Ruth Kallio-Mielke, CPA Gale said that promoting a company culture that invites different beliefs and perspectives helps the firm better serve its clients. “And the other piece is that we don’t operate in a vacuum, so it’s important for us to be representative of all the communities we serve,” she added. “Statistics show our society is only going to become more diverse as we move forward.”

Revealing hidden biases Another component of Deloitte’s strategy centers on training sessions with leaders to advance inclusion and raise awareness of unconscious bias, which helps employees develop strategies to mitigate personal blind-spots that can impact decision making. “When leaders complete the training, the goal is that they go back to their teams with a commitment in hand, knowing what they need to do to model and behave inclusively, to be empathetic, and to meet our people where they are,” Kallio-Mielke noted.

“The training is about being mindful of how you view things—while being able to appreciate that your colleagues may see or experience things differently—in order to do a deep dive exploration of how you can embody our inclusive culture,” she said.

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The organization also supports monthly book club meetings and periodic empathy/listening sessions. Different groups and teams have discussed various books that provide information about the history of racial/ethnic inequality in America.

Kallio-Mielke pointed out that such programs gain more credibility and are much more successful when members of senior management participate.

At KPMG, Hammerer said that without a culture focused on diversity and inclusion, it’s impossible to fulfill the firm’s core values of integrity, excellence, courage, together and for better. To that end, the company named a chief diversity and inclusion officer as well as a chief cultural officer.

The company also has created seven business-resource groups that support disabled people, African Americans, Asians, Hispanics, women, veterans and people who identify as LGBTQ. “But I would suggest that diversity and inclusion is broader than just those groups,” she noted. “It’s necessary to have diversity of thought and diversity of experience as well as diversity of age. But these are the seven defined groups around which we’ve built a network and allies to support them.”

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Community outreach At Ritz Holman, Tricia Knight, CPA, who’s been a partner there for 35 of her 42 years with the firm, strategic initiatives include internal discussions about diversity and a community-outreach program aimed at bolstering the ranks of minorities in accounting.

Tricia Knight, CPA

“We’re probably in a better place than a lot of firms because we’ve stressed diversity long before it came to the forefront,” Knight said. “It all stems from Nate Holman, one of the company founders.”

As evidence, Knight pointed out that the firm made her a partner at age 29. Furthermore, the firm has three female and three male partners as well as African American, Asian American and Indian American employees and has employed Hispanic professionals, she said.

Furthermore, a large part of the firm’s client base consists of nonprofit groups that serve Hmong, African-American and Hispanic ethnic groups. That, in turn, has increased awareness about the importance of employee diversity, she said.

“We spend a lot of time talking openly about diversity and have an Engagement Committee that actively works on diversity initiatives,” she added. “We also encourage employees to do volunteer work for organizations — even during workdays — that serve diverse groups. And we also have people who sit on the boards of some of these organizations.”

For example, Knight says she’s on the board of directors for St. Joan Antida High School, an all-girl high school near Milwaukee’s lower East Side that serves a largely minority population.

Sharing experiences About six years ago, CLA embarked on developing an action plan for diversity, equity and inclusion that’s now focused on five areas: leadership, operations, employee engagement, recruiting and community/client impact. A diversity, equity and inclusion team features a group of stakeholders who work with local teams and share their thoughts about diversity, equity and inclusion with company leaders, Gale said.

“Having those stakeholders share their experiences is part of our education program,” she explained. In one vivid example, a senior leader of the company — talking during a “sharing session” in the wake of George Floyd’s death while being restrained by police in Minneapolis — talked about her experience of being pulled over by police in a “driving-while-Black” incident.

“What we’ve seen, and this is where it’s most critical, is that even some of our most experienced team members recognize they may have unconscious biases,” Gale said. “It’s always hard to put ourselves in someone else’s shoes.

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What we’ve seen, and this is where it’s most critical, is that even some of our most experienced team members recognize they may have unconscious biases.

– Karin Gale, CPA

“But sharing those experiences helps us better understand how we can behave more inclusively,” she added. “It’s had a lifechanging impact on many of our team members.”

CLA also established a foundation in 2015 that awards grants to nonprofit groups that serve diverse populations. In Wisconsin, groups that have received money include the Boys & Girls Clubs of Greater Chippewa Valley (based in Eau Claire), GPS Education Partners (Milwaukee), La Casa de Esperanza Inc. (Milwaukee) and Junior Achievement of Wisconsin, Gale said.

In addition, CLA in 2020 named a chief culture and engagement officer to help bolster diversity efforts, she added.

Inclusion matters, too There’s more to a successful diversity program than increasing minority representation: Inclusion is equally important, all interview participants agreed. As Knight put it: “If you’re going to talk the talk, you also have to walk the walk.”

That’s exactly why KPMG named a chief culture officer, noted Hammerer. “The inclusion part of the equation sometimes is even harder than the diversity part,” she said. “Building a culture where everyone’s thoughts and ideas are valued requires managing human behavior — and that’s something we’re committed to every day. But a lot of it comes from the tone at the top.”

“For Deloitte, the key is fostering a culture where our professionals feel safe, supported, and engaged,” said KallioMielke. “We are accomplishing this through a focus on awareness, unconscious bias and inclusive leadership trainings, and courageous conversations supported by leadership. The other key is providing mentorship, sponsorship, and leadership development for our professionals, so everyone is able to connect, belong, and grow.”

New recruiting tactics Some accounting firms also are enhancing their recruiting strategies to establish more diverse workforces. At KPMG, for example, a program called Accelerate 2025 aims to encourage

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more college students of color to consider the firm as an employer of choice, Hammerer said.

The firm is broadening its recruiting efforts to include schools with more minorities. It also plans to more actively post job openings on the internet, which can reach a wider set of diverse candidates, she explained.

Kallio-Mielke said Deloitte is creating mentorship programs at four major colleges in Wisconsin. Initially established to gain traction in recruiting female students, the program now aims to identify strong underrepresented minority candidates, too, then pair them with senior managers at Deloitte for mentoring.

“When those students think about accounting, we want them to think about Deloitte,” she said.

Gale pointed out that it’s important to send a diverse team when organizations go to college campuses to recruit students.

A challenging obstacle One of the biggest challenges to creating a more diverse accounting workforce is lack of minority college students majoring in accounting. “There aren’t enough diverse candidates in the pipeline, so it’s absolutely a challenge,” Hammerer said.

As such, some firms are working with groups like Junior Achievement and partnering with middle and high schools to expose more minority students to accounting careers.

At Ritz-Holman, for instance, a partner has given presentations to the Summit Educational Association, a nonprofit group that runs tutoring and mentoring programs for disadvantaged Milwaukee youths. The firm also has hosted tours for young minority students, Knight said.

“We find that they don’t know what public accounting is and don’t know there are opportunities there,” she explained. “So it’s all about educating them early on; exposing them to this in college is too late.”

Optimism ahead Those interviewed expressed optimism that, in the long run, firms will eventually resolve the racial diversity challenge. But they agreed it won’t happen overnight.

“I hope we can learn from the great progress we’ve made on the gender side,” Hammerer said. “But it all goes back to emphasizing inclusion and the cultural shift we’re so significantly focused on [at KPMG].”

Gale agreed, pointing out that 30 years ago, gender parity seemed impossible. “But ultimately, we saw more and more females,” she said. “So as we see more and more minorities enter the profession, I believe that racial diversity will come to be as well.”

Ken Wysocky is a freelance writer based in Whitefish Bay. Contact him at 414-962-6202 or kenwysocky@gmail.com.

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Filling the Pipeline: A College Success Story The lack of minority college students majoring in accounting poses a daunting hurdle to boosting racial diversity at accounting firms.

But Alverno College in Milwaukee is bucking that trend, said Mike Amidzich, CPA, assistant professor of accounting.

Mike Amidzich, CPA

“We have a very diverse accounting program,” said Amidzich, noting that 85% of the 20 accounting majors are minorities.

A former auditor at KPMG, Amidzich cites several reasons for the school’s success in attracting minority accounting students: l Establishing a “CPA track” – a strategic sequence

of classes that prepares students to take the CPA Exam without the need for a more expensive master’s degree. “We thought it might attract a broader base of students,” Amidzich said, “and it has.” l Forming a student accounting group that meets

periodically throughout each semester and pairs freshman students with upper-level accounting majors. “Our goal is to get the new students quickly aligned with peers who have similar career goals and similar life obstacles,” said Amidzich, who is the group’s faculty advisor. l Developing a strong partnership with the National

Association of Black Accountants (NABA), which helps the school attract minority students and prepares them to get internships; and appointing Dr. Sharon Skinner, an assistant business professor at Alverno, as a faculty liaison with NABA. “She’s a minority, so the students feel comfortable going to her,” Amidzich said.

In fall 2018, all four students who attended a national NABA conference obtained internships at Walgreens, Ernst & Young, JPMorgan Chase and KPMG. “NABA gives our students access to big companies that often overlook smaller colleges like Alverno,” he explained.

Amidzich said he’s also trying to establish an outreach program in which Alverno accounting students would go back to their high schools to spread the word about great careers available in accounting. “We want to get them excited about accounting at a much earlier age,” he said.

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UNCONSCIOUS BIAS We all have it — and we can all work on it!

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Everyone has some degree of bias that they use to navigate through life, some more than others.

A

s a former football player for the University of Nebraska, and having been raised in Nebraska, I’m a HUGE Nebraska football fan (be easy on me, Badger fans!).

Let’s say that I decided to take a job in Madison. One day I’m having

By Aaron Davis coffee in one of the local coffee shops, and I look up and notice a couple in line, and they both have on Nebraska football gear! I’m delighted and excited to see someone who holds something in common with me — a love for Huskers football — and I’m assuming they also have memories of what the Badgers have been doing to our beloved Huskers the past number of years in football.

I have no problem walking over to them and starting up a conversation with two strangers.

The above is an example of “explicit bias” because it’s at a conscious level, it’s been deliberately formed, and it’s simple to self-report — as I’ll tell anyone that I love my Huskers!

However, explicit bias can be detrimental in other areas of our lives — from our personal lives, work, hiring decisions, promotions, real estate, banking and so forth.

Let’s say you’re driving through another part of town or another town altogether where no one looks like you. Have you ever experienced that? Possibly you had feelings of nervousness or angst, and you were checking your GPS for the quickest way back to the expressway.

This is an example of “unconscious” or “implicit” bias.

This bias is on the unconscious level, and it’s involuntary and unknown to us. Unconscious bias refers to attitudes, prejudices and stereotypes that impact our thinking and behavior — and that can be problematic.

Why does the above happen in both cases? The human mind is a fantastic tool. Our brains can process about 11 million pieces of information per second, which is why we take mental shortcuts to process and sort the enormous amount of data. Yes, this is an excellent feature in processing information.

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Still, it often gets seen through a lens that images our experiences and surroundings, often accompanied by stereotypes and unfounded or entirely false assumptions.

The very tool that we use to cut through the data can also become the primary reinforcement of unconscious bias.

Feeling guilty is not good enough “I cannot hide my anger to spare you guilt, nor hurt feelings, nor answering anger, for to do so insults and trivializes all our efforts. Guilt is not a response to anger; it is a response to one’s own actions or lack of action. If it leads to change, it can be useful since it is no longer guilt but the beginning of knowledge. Yet all too often, guilt is just another name for the impotence, for defensiveness destructive of communication; it becomes a device to protect ignorance and the continuation of things the way they are, the ultimate protection for changelessness.”

– Audre Lorde Guilt is natural as we combat our biases, but as poet and essayist Audre Lorde has so eloquently stated, guilt can only be beneficial if it leads to action that elicits a change in behavior.

Action is the only answer You’ll never plow a field by turning it over in your mind.

– Irish proverb Everyone has some degree of bias that they use to navigate through life, some more than others. Can one totally eliminate bias altogether? It’s not likely. However, taking action to challenge and reduce bias is possible, by using effective strategies.

These strategies are simple; however, they are not easy in that it takes more than a moment of guilt. It’s going to take a mental “movement,” which requires sacrifice — and possibly some discomfort — but it’s worth it, as action is the only way.

Go to the rodeo!

My wife happens to be white, and I’m Black, so we have lots of black and white photos throughout our home. (Did

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you get it? Ha-ha!) She’s from a small town in central Nebraska with a population of 250. Yikes! I sometimes see that many people in the coffee shop on any given day.

Over the Fourth of July weekend, her town has a countywide rodeo that draws a good crowd of people. That swells the town to at least 800 people, and that’s metropolitan to them. She’d asked me numerous times to check out the rodeo with her, and I would decline each time because of my own explicit bias. I did not want to be the only Black person surrounded by cowboys and horses.

There you have it; and yes, it was clear explicit bias on my part!

So, what did I do? I finally agreed to go — and do you know what? I had an absolute BLAST! That was over 20 years ago.

Do I go back every year? No. But it changed the bias that I had toward small-town cowboys who were all white. Were there a few moments of discomfort from some unfriendly stares and such? Yes! Did I let it stop me? Nope. I refused to allow a few looks to stop me from living my life, enjoying my family and meeting new friends — many of whom are still close friends of mine over 20 years later.

What’s your rodeo? What action can you take to challenge and interrogate your own bias? Is it going to a different place of worship, one with more diversity? Is it going to lunch, dinner or coffee with someone who has a different background from yours?

It’s a commitment Finding your rodeo is only the first step of action. Chiseling away at bias is a lifelong and daily commitment.

The gym where I work out is packed for about three weeks after the first of the year. Then, like clockwork, it goes back to normal again. Why? Because many were motivated only by their New Year’s resolutions and not committed to their fitness goals.

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Today we are fortunate to have a vast amount of resources to educate ourselves and commit to lifelong learning in the quest to reduce our bias.

I’ve personally made it a lifestyle to stay in shape, and so it must be when attacking our bias.

Today we are fortunate to have a vast amount of resources to educate ourselves and commit to lifelong learning in the quest to reduce our bias. Read or listen to books, listen to podcasts, spend time with different people who expose you to counterstereotypical experiences and information.

Be mindful of your language and communication as you deal with others who are different from you. If you see it, say it!

Respectfully call out others who use or say insensitive things or make statements that are flat-out wrong or discriminatory.

Bias: We all have it, and we can all work on it. So get going and find your rodeo!

Aaron Davis, president of Aaron Davis Presentations, is a speaker and author dedicated to helping people identify and work to overcome conscious and unconscious bias. Contact him at 800-474-8755 or adavis@aarondavis.co.

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memorials Maurice Eugene Dewane, CPA (1920 – 2020)

Maurice Dewane, CPA, 99, a longtime WICPA member, died on Saturday, Sept. 12. He was a graduate of Green Bay Business College and served in the U.S. Army Air Force from 1941 through 1945. After the war, he was a partner in the family farm equipment business of Dewane Brothers in Maribel. When it sold in 1963, he went to work for the Wisconsin Department of Revenue (DOR) Legislative Audit Bureau, where he remained until retirement. Dewane is survived by two sons, a daughter, seven grandchildren and 12 great-grandchildren.

Raymond George Feest, CPA, MBA (1935 – 2020)

Raymond George Feest, CPA, MBA, 84, passed away on Saturday, July 25. He earned his accounting degree from Dominican College and an MBA from Marquette University and was a CPA in Racine for over 56 years. He also taught accounting at Dominican College, UW–Parkside and UW–Whitewater. Feest is survived by his wife, six children, 15 grandchildren and 17 great-grandchildren.

Kevin J. Hermans, CPA (1960 – 2020)

Kevin J. Hermans, CPA, 59, died unexpectedly Friday, Feb. 7.

He was born in Green Bay and was a graduate of Premontre High School. Following high school, Hermans attended St. Norbert College, graduating in 1982. After college, he started his career as an accountant in the family business, Hermans & Associates PC, Green Bay. When Hermans’ father retired from the business, he and his sister Kathy assumed ownership of the firm. Hermans is survived by his wife, sister, brother, two daughters and many nieces and nephews.

Jerome L. Holden, CPA (1932 – 2020)

Jerome L. Holden, CPA, 88, passed away Monday, July 6.

He was a lifetime member of the WICPA and Financial Executives International. Holden grew up in Racine and served in the U.S. Army fro 1951 to 1954. Afterward, he attended Marquette University and graduated in 1958.

Holden worked as a CPA in public accounting and served as a banking executive in Wauwatosa and Milwaukee for many years. He is survived by three daughters, three grandchildren, three great-grandchildren, a brother and a sister.

Tom Jezo, CPA (1948 – 2020)

Edward Thomas (Tom) Jezo, CPA, 72, passed away Friday, Oct. 2,.

He was a longtime active member of the WICPA. Jezo graduated from Marquette University High School in 1966 and then went to Denver, where he earned his accounting degree at Regis College in 1970. After an internship with the IRS, he returned to the Milwaukee area and practiced as a CPA at various accounting firms, including Balistreri, Jezo & Lascari in Brookfield and most recently the Gordon J. Maier Co. in Brookfield. Jezo is survived by his wife and son, two sisters and a brother.

Duane Kuehl, CPA (1932 – 2020)

Duane Kuehl, CPA, 87, died Sunday, Aug. 2. He was a past president of both the WICPA and the WICPA Educational Foundation Inc. He also served on the Finance Committee and was a recipient of the Distinguished Career Award. Kuehl was an instructor and member of the board of regents at Wisconsin Lutheran College and served on the board of Northwestern Publishing House. He owned his own accounting firm and served on many committees of the AICPA. Kuehl is survived by his son, three daughters and three grandchildren.

Richard C. Larson, CPA (1957 – 2020)

Richard C. Larson, CPA, 63, died Friday, Aug. 28. Larson earned a degree in accounting from UW–Eau Claire in 1979 and began working for Ernst & Young. He became a CPA and later enjoyed a successful career in banking as CFO of WaterStone Bank, Guarantee Bank and Kohler Credit Union.

Larson shared his time and talents as a volunteer, working with small businesses and startups through the Wisconsin Women’s Business Initiative Corp. and teaching personal finance to Milwaukee Public Schools high school students. He is survived by his wife, daughter, son, mother and three siblings.

Mills C. Perry, CPA (1927 – 2020)

Mills C. Perry, CPA, 92, passed away Friday, July 31. He was a lifetime member of the WICPA. Perry served briefly in the U.S. Army after high school and then attended Bryant College in Rhode Island, where he earned an accounting degree. As a CPA, he was employed with Price Waterhouse, Harnischfeger Homes and Mortgage Associates, where he rose to the position of president. Mortgage Associates was acquired by Industrial National Bank, now part of Bank of America. Perry is survived by four children, nine grandchildren, a great-grandchild and two sisters.

Leonard L. Rochwerger, CPA (1942 – 2020)

Leonard L. Rochwerger, CPA, 78, passed away Friday, July 17.

He was 78. Rochwerger graduated from UW–Whitewater with a bachelor’s degree in accounting. He spent his entire career working at Aldrich Chemical Co. in Milwaukee, starting as a junior accountant and working his way up to executive vice president, secretary and treasurer of the company. He enjoyed theater and art and was a 20-year volunteer for the Herberger Theater in Phoenix. He also volunteered with Sun City West’s free tax preparation service for more than 20 years, teaching classes and preparing and reviewing tax returns. Rochwerger is survived by his wife and one daughter.

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. wicpa.org

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Amid the threat of COVID-19, CPAs could be facing another health crisis: a mental one.

Reprinted from the Summer 2020 issue of Insight with permission of the Illinois CPA Society.

By Bridget McCrea

B

y now, your traditional busy season should already be in your rearview mirror, having wound down shortly after April 15.

In years past, you would have already pored over the numbers, double-checked the calculations, and filed the necessary tax forms on behalf of your company or clients. You would be ready to take a breather, schedule some time off from work, and plan that summer vacation you’ve been anticipating.

Not this year. The global coronavirus pandemic threw a wrench in this scenario, taking a heavy toll on human life and day-to-day activities, and extending the tax season to July 15. This likely left you, along with your fellow CPAs across the country, to balance several unforeseen challenges at once: managing the “new” busy season, helping clients and employers navigate unprecedented financial scenarios, ensuring everyone at home is safe, and maintaining personal emotional wellbeing.

Any one of these tasks is arguably monumental, but when they began compounding upon one another during the spring and early summer, it became easy to see how any CPA could be left feeling overwhelmed and depleted of both physical and mental resources.

“This is a really stressful, anxiety-provoking, and dehumanizing time for all of us, but particularly for those in professions that are tension-evoking and have time pressures associated with them,” says Jessica Lippman, Ph.D., a clinical psychologist.

“Spring is a busy season to begin with for CPAs,” she explains. “Most of them are generally dealing with the mounting pressure of having too much work squeezed into too little time—not to mention looming tax deadlines.”

The impact of this perfect storm of pressure can be downright overwhelming on a CPA’s psyche, Lippman says, and can take a toll on professionals’ mental health as they rush to meet deadlines, work long hours, eat on the run, and neglect their own needs.

In March, for example, Lippman found herself working with one CPA whose anxiety levels were so high that he was forced to take a leave of absence from work. “He was on overload,” she explains, “and questioning every action that he had taken and obsessing over what mistakes he had made or would make.”

To survive busy season — and now COVID-19 — with their mental health intact, there are simple and pragmatic steps CPAs should take.

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Get back to basics Managing busy season is stressful in a normal year, but it’s especially strenuous during a global pandemic. With COVID-19 continuing to stir up emotions like stress, anxiety, fear, sadness, and loneliness, the Mayo Clinic recommends getting enough sleep; participating in regular physical activity; eating healthy meals; avoiding tobacco, alcohol, and drugs; limiting screen time on computers and mobile devices; and taking time to relax and recharge as needed.

While these pointers may sound simplistic, a sound night’s sleep or a healthy meal instead of takeout can make a big difference for mental health.

Jay Scherer, president of Scherer Executive Advisors, says one of the best things CPAs can do to reduce their stress levels right now is to exercise regularly. With social distancing rules impacting health club attendance, he advises professionals to set up mini home gyms: invest in a treadmill, bike, or elliptical machine, plus a few dumbbells and a yoga mat, and use them on a regular basis.

“With the long hours that CPAs work, there’s a natural tendency to push their own health and wellbeing to the back burner,” Scherer says. “This can be detrimental because the best defense against anxiety and stress is a good diet, good food, good sleep, and working out.”

Focus on a fresh perspective During difficult periods, Scherer says it’s important to stay focused on the light at the end of the tunnel. While this tunnel may seem particularly long and dark, maintaining a positive attitude as you progress through it is key to maintaining your mental health. Planning a fun activity for the future can help snap you out of a negative mindset. Someone who typically takes an extended break at the end of the busy season, for instance, can start the early planning stages of taking this break in the fall.

“CPAs like routine and enjoy having summers off, or at least some downtime during that period,” Scherer points out. “The fact that the tax deadline falls in July interrupts these plans, not to mention the fact that there will be extensions filed and more work to do even when the actual deadline passes.”

To manage this uncertainty, Jasmine Young, CPA, founder and CEO of Atlanta-based Southern Tax Preparation & Services, says she’s creating daily to-do lists, sticking to a schedule, and allotting ample time daily for self-care. “Setting a daily to-do list keeps me from being overwhelmed by the amount of work that has to be completed,” she says. “I also prioritize tasks on the to-do lists to ensure client deadlines and expectations are met.”

Young says she’s also setting working hours — and sticking to those hours — to prevent burnout. With more people

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Staying within your working hours not only sets boundaries for clients and employers, but it also establishes boundaries for CPAs to ensure there is work-life balance.

– Jasmine Young, CPA working from home and feeling “always on,” setting these parameters is more important. “Staying within your working hours not only sets boundaries for clients and employers,” Young says, “but it also establishes boundaries for CPAs to ensure there is work-life balance.”

When it comes to self-care, Young says it can be as simple as setting aside time to take a walk outside for some fresh air, meditating, having lunch away from your desk, or simply doing nothing at all. “This supports good work-life balance and allows CPAs time to wind down from the stress of the work required during this busy season,” she says.

Cut yourself — and your team — some slack Knowing that their team members are dealing with more than the usual number of personal challenges right now,

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managers and owners can also play a role in supporting mental health. Scherer says opening lines of communication is a good first step, followed by questions like: What challenges are you working through? How can I be helpful to you? What do you need from us?

“If a leader is oblivious to the individual needs of his or her team, those issues will be exposed pretty quickly when things rev back up,” Scherer says. He also cautions managers and owners to not push their teams too hard to make up for lost revenues due to COVID-19: “You’re not going to make it all up this year, so don’t even try — especially if you’re billing hourly. Cut yourself some slack and acknowledge that it’s just not going to be a great year; otherwise, you’re going to put too much pressure on your people.”

Pointing out the fallacy that partners don’t get ulcers — they give them — Lippman says now is also a good time to define the role and the scope of each CPA’s position. “Firms hire very competitive personalities in a profession where quantitative overload and time pressures are the greatest stressors,” she says. “This, in turn, leads to job tension and

psychosomatic stress, the latter of which is both real and genuinely felt.”

Along with the tips already mentioned, Lippman says limiting exposure to news media and regularly connecting with others via phone, email, video chat, social media, and even snail mail can all help CPAs maintain their emotional health during a crisis.

To managers, Lippman says simply acknowledging that team members are working very hard despite what’s going on in the world around them can go a long way in helping them feel appreciated and respected. “Providing this level of support is incredibly important at all times,” Lippman says, “but it’s more critical now than ever.”

While these suggestions are relatively minor, small changes can make a big difference to mental resilience — to the end of the busy season and beyond.

Bridget McCrea is president & CEO of Expert Writing Services Inc., Tampa/St. Petersburg, Florida. Contact her through LinkedIn.

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25

Welcome new members!

Get to know the newest members of the WICPA. July 1, 2020 – Sept. 30, 2020

Thomas D. Antinoja Super Products LLC

Gregory Geanon Baker Tilly

Ronald M. Bell Ron Bell EA

Amy Grunewald Plastics Engineering Company

Joseph L. Bestor

Emily Hacker Rogers Behavioral Health

Catherine J. Boknevitz BDO USA LLP Joe W. Borton Nathaniel Bruckschen Ernst & Young LLP Sazy Cardino Cielo

Jason R. Hahn Donald Hewitt RSM US LLP Wen-Lueh Huang Ernst & Young LLP Laura N. Hyland

Margaret Erickson Ann Fabry BayCare Health Systems Samantha K. Fink

Jyll Johnson Creative Community Living Services Emily Kaftan CLA

Jeffrey S. Kahler Benjamin Kleist SECURA Insurance

Ethan H. Metz Peterson Metz Ltd

Holly Stanger BDO USA LLP

Jeffery R. Miller Jr.

Susan G. Vetrovsky-Goldstone

Andrew Z. Klinich Robert C. Roth CPA S.C.

Luke T. Olson Robert C. Roth CPA S.C.

Claudia A. Vlisides Claudia Vlisides CPA LLC

Marisa Koch Ernst & Young LLP

Ela Pagenkopf

Cynthia L. Walters CL Walters Inc.

Jodi R. Lamsam

Melanie L. Patterson Madison Children’s Museum

Susan V. Lane Anderson, Hager & Moe S.C.

Emily Podewils CLA

Elizabeth M. Wernimont Johnson Block & Co. Inc.

Calvin J. Leszczynski Sitzberger & Company S.C.

Ryan P. Schmidt KerberRose S.C.

Michael J. White Johnson Block & Co. Inc.

Darren M. Leuwerke

Thomas G. Schober

Daniela C. Marchiori Deloitte & Touche LLP

Thomas Sobaskie

Kyle K. White Johnson Block & Co. Inc.

Thomas W. Spicer Nagel & Vanden Heuvel CPAs LLC

Shannon R. Meinholz Wipfli LLP

Evan H. Webster

Michele R. Wilborn Jesse R. Wunderlin

Join the WICPA Educational Foundation Board!

The WICPA Educational Foundation is seeking members to serve on its board of directors.

Some of the opportunities include: • Assisting in efforts to attract students to the profession.

• Providing strategic governance in accordance with the WICPA Educational Foundation mission.

• Acquiring new leadership skills.

The WICPA Educational Foundation plays a pivotal role in supporting programs to improve awareness and perceptions by educating students and educators about the exciting opportunities available to accounting professionals.

To apply, visit wicpa.org/EFBoardApplication through Feb. 28, 2021.

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Questions? Contact tammy@wicpa.org.

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Stressed for tax time?

CPAs are your EASY BUTTON Find yours at wicpa.org/FindMyCPA

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27

{ Business Law | S corporations }

Avoiding Inadvertent Termination of the S Corporation Election

A

By Alexandra J.C. Gregorski, MBA, JD and

John A. Sikora, JD

n S corporation election can be revoked with the consent of shareholders holding more than one-half of the shares of the corporation’s stock. [See Internal Revenue Code (IRC) § 1362(d)(1).]

The election can also be terminated in circumstances in which the owners have no intent to do so. Some of these — with particular emphasis on situations in which limited liability companies (LLCs) have elected to be S corporations — are discussed in this article. Tax advisors should help educate S corporation clients about termination situations so clients will be more apt to timely consult with their advisors and avoid them.

Criteria for S corporation status

An S corporation may not have more than 100 shareholders, and shareholders may be only individuals, estates, certain trusts or certain exempt organizations. None of the individuals may be a nonresident alien. The corporation may not be an “ineligible corporation”1 as defined in IRC § 1361.

An S corporation may not have more than one class of stock, which generally means that all shares of stock must confer identical rights to distribution and liquidation proceeds. the term “ineligible corporation” means any corporation which is (A) a financial institution which uses the reserve method of accounting for bad debts described in section 585, (B) an insurance company subject to tax under subchapter L, or (C) a DISC or former DISC. 1

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Whether all outstanding shares of stock do so is generally based on the entity’s “governing provisions.”2 Differences in voting rights among shares of stock are disregarded in determining whether the corporation has more than one class of stock.

Avoiding the inadvertent termination of the S corporation election Failing to meet any of the S corporation requirements results in the termination of the S election. [See IRC § 1362(d)(2).] Recognizing and helping clients avoid events that will terminate the S status is often quite straightforward, such as with respect to application of the 100-shareholder and type-of-shareholder limitations.

As to the former, most clients are aware of the limit and seek counsel before issuance of stock to a larger number of owners. As to the latter, avoiding an inadvertent termination is, in some measure, often accomplished by proper provisions 2 Treas. Reg. 1.1361-1(l).

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in corporate instruments (usually shareholder or buy-sell agreements and occasionally organizational documents) prohibiting and rendering void transfers of shares to ineligible shareholders. Advisors should recommend execution of documents that include such limiting provisions, as without them one shareholder could, by the transfer of a single share, cause termination of the S status.

Other situations may not be as readily apparent to the client, nor perhaps even the client’s professional advisor.

Some situations involve entities formed as LLCs, which are — under the entity classification regulations — allowed to elect to be taxed as corporations (as opposed to the default classifications of disregarded entity or tax partnership) and to make an S election.

Entities that do so need to be aware that the list of permissible owners is not as extensive as when, for example, it was taxed as a partnership. Instances have occurred in

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“

Tax advisors should help educate S corporation clients about termination situations so clients will be more apt to timely consult with their advisors and avoid them. which advisors, perhaps not fully appreciating the S status of the LLC, have assisted in the admission of new LLC members who were not qualified S entity owners.

Such entities, particularly those converting from tax partnership to S corporation status, will need to examine

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{ Business Law | S corporations }

and likely amend their operating agreements before making an S election and exercise care in executing new agreements or amendments. Private Letter Ruling (PLR) 2020190073 illustrates the hazards of not doing so.

In the PLR, the operating agreement of an LLC that had filed an S election provided that liquidation proceeds would be distributed in accordance with capital accounts as opposed to pro rata based on relative membership interests. The capital accounts of the members were also not proportionate to membership interests. The ruling held that the LLC’s S election never became effective because, among other things, rights to liquidation proceeds based on capital accounts, and not pro rata based on membership interests, meant the LLC had more than one class of stock.

Instances in which an LLC elects to be taxed as a corporation and also makes an S election are not uncommon.

The disqualifying provisions of the operating agreement described in the PLR are often included in typical operating agreements of LLCs taxed as partnerships. Although we are speculating, the PLR seems to involve a situation in which the professional advisors may not have given any thought to the terms of the LLC’s existing governing and organizational documents when making the S election — or perhaps a situation in which the drafter of the operating agreement and the tax advisor may not have communicated well about the importance of proper operating agreement terms.

In sum, then, LLC operating agreements must be evaluated and perhaps significantly modified if the tax treatment of the entity will be changing to S corporation status, particularly if an LLC was previously taxed as a partnership. Such entities often have agreements that contain not only disqualifying provisions of the kind referred to in the PLR but also preferred or priority returns, multiple classes of membership interests, different rights to distributions, different rights to tax distributions and other varying economic rights that would likely — under S corporation rules — result in a second class of stock.

Some (but not all) of the other circumstances in which taxpayers have seemingly failed to properly appreciate the S election termination provisions are as follows: • S corporation having C corporation earnings and profits with excess passive investment income for three years, resulting in termination under IRC § 1362(d)(3)

3

30

“

Tax professionals, document drafters and transaction advisors must work closely together when any S corporation transaction or event is considered.

• Transfers to or changes relating to trusts following which the trust did not qualify as an S shareholder [See IRC § 1361(c)(2).]

• The admission of a second member to a single-member, disregarded LLC that owned S corporation stock • The issuance of shares subject to a corporate agreement that created a second class of stock

Inadvertent termination relief Thankfully, under IRC § 1362(f ) and Treas. Reg. § 1.1362–4, a corporation may request IRS determination of an inadvertent termination and relief from it. The request is made in the form of a ruling request in which the corporation has the burden of establishing that the termination was inadvertent. Requesting such relief from the IRS is obviously something all S corporations want to avoid. The process is lengthy, and in addition to professional costs, fees are associated with filing the ruling request.

Summary and recommendations Tax professionals, document drafters and transaction advisors must work closely together when any S corporation transaction or event is considered. Advisors may want to send periodic reminders regarding S election termination risks or establish review procedures regarding governing provisions on a regular basis, at the time of impending transactions and before submission of Form 2553.

Alexandra J.C. Gregorski, MBA, JD, is an attorney in the business practice group at von Briesen & Roper s.c. Contact her at (414) 287-1294 or agregorski@vonbriesen.com. John A. Sikora, JD, is a shareholder in the firm’s tax section. Contact him at (414) 270-2512 or jsikora@vonbriesen.com.

https://www.irs.gov/pub/irs-wd/202019007.pdf

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

Harris Hauptman CAMICO Senior Account Executive T: 800.652.1772 Ext. 6727 E: hhauptman@camico.com W: www.camico.com On Balance

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31

{ Technology | Excel tips }

THE POWER OF EXCEL

POWER QUERY

T

By Pam Kirchen, CPA

here has to be a better way! The tedium of manual data aggregation (filter/ copy/paste in Excel, for example) is time consuming and, frankly, not very fun. Accountants can find themselves doing this many times over, such as aggregating multiple reports each month or combining monthly reports into quarterly or annual reports.

What is the better way? Certainly there are many options. Packaged software can do the trick, but it can be expensive and have more bells and whistles than really needed. Excel macros are a popular do-it-yourself approach, but it can be challenging to support across a team with varying levels of technical savviness.

Power Query is a powerful and often unknown Excel tool used to aggregate data. This article will walk through Power Query functionality with an illustrative example.

Microsoft Excel for Office 365 was used for the example and for all step-by-step instructions.

The problem Every month (yes, EVERY month) a diligent employee runs the same report for five regions and combines relevant data from each report into one master summary. It’s a manual process: Open each report, filter for the desired rows and then copy only data from certain columns. After it’s repeated five times, the master summary is just about done … then, inevitably, something looks wrong. Back to those files AGAIN. There has to be a better way!

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How can Power Query help?

Let’s walk through an illustrative example.

Here is a simplified version of the report our diligent employee runs five times each month. The data in Columns C and E need to be retained, but only for Rows 3 and 4 (marked with “X”).

Get going with Power Query First, all five reports (let’s say they’re CSV files) are saved in an empty folder. It’s important that nothing else is in this folder other than those five CSV files.

Next, Power Query will combine the CSV files to one master summary as follows: 1. In a blank spreadsheet, select Get Data from the Data tab, then select From File, and then select From Folder.

2. Browse to the folder where the files are saved and click OK. 3. A list of files appears. Click Transform Data.

4. The Power Query Editor opens. Click the two downward-pointing arrows in the Content column.

5. A prompt to specify file settings appears. The default selections are usually appropriate, so click OK.

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“

6. The Power Query Editor now displays a preview of all five files combined into one table (the screen shot below just shows the first two). Almost there!

The beauty of Power Query is its simplicity — and it’s free within Excel.

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{ Technology | Excel tips }

7. Clean up the data as follows: a. Power Query detected that the first row of data contains headers. If that is not the case, then click Use First Row as Headers (near the middle of the Home tab). b. Use the filter buttons just as you would in Excel to filter out unnecessary rows. In this example the unwanted rows are blank, so the Salesperson column is filtered for anything that is not blank. c. Remove unnecessary columns (Sale Type 1 and Sale Type 2) by selecting the whole column (click on the column heading) and press the Delete button on your keyboard or the Remove Columns button on the Home tab.

8. Done! Click Close & Load in the upper left corner of the Home tab. Data is now returned to Excel aggregated in the single table pictured below.

• Click Close & Load in the upper left corner of the Home tab, and the same report as last month is created with ease — and with less risk of manual error.

Quick and easy tips and tricks • The Power Query Editor “records” each step of the query in a pane along the right side of the editor screen. Steps can be edited there using the gear icon or in the formula bar at the top of the screen. Steps can be dragged up or down and deleted within the pane as well.

• Need to add subtotals? Try using Group By on the Home tab.

• Conditional Column and Custom Column (both on the Add Column tab) are great ways to build upon your core data.

• Does your report have a title above the data? If so, take it off by using the Remove Rows options on the Home tab.

• Feeling advanced? Try adding a parameter. I use parameters to substitute the current month into a file path to more easily roll a template forward from month to month.

Wrapping it up The beauty of Power Query is its simplicity — and it’s free within Excel. Although Power Query can do a lot of things, most accountants need only the basic functionality. Working through a simple example like the one above is usually enough to start the ball rolling for new users. And, of course, the internet has a wealth of knowledge to help you on your way.

Now the data is much more user friendly! Our diligent employee can save the final spreadsheet as-is or create a template using Excel formulas linked to the aggregated table.

What about next month, when exactly the same thing needs to be done again? Well, Power Query makes it easy. Save the five reports for the new month in a new folder, ensuring those reports are the only folder contents. Open the prior month spreadsheet, the one with the master summary/aggregated table, and follow these steps: • From the Data tab click Queries & Connections.

• A pane appears on the right side of the screen. Doubleclick on the query listed under the Other Queries folder.

The Power Query Editor launches.

• Click on Data Source Settings on the Home tab, and then navigate to where you saved the current month reports (Change Source, Browse, OK, OK, Close).

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Streamlining recurring tasks is just the beginning. Easier access to data opens doors to a more value-add, analytical frame of mind. And those ad hoc questions (you want WHAT?) are easier to answer with better data at your fingertips. Dashboards (Power BI, for example), charts and graphs can be taken to the next level.

Complex data needs may call for a tool other than Power Query. However, Power Query can be a great tool if you’re simply experimenting and/or developing an initial proof of concept.

How have you used Power Query? Do you have ideas but need a little help getting started? I’d love to hear from you.

Pam Kirchen, CPA, is an accountant with an interest in workflow and process optimization. Contact her at pam.kirchen@artisanpartners.com or connect through LinkedIn.

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Milwaukee • Madison • Neenah • Waukesha On• Balance Green November Bay | December 2020

35

{ The Profession | CPA Exam changes }

Reprinted from New Jersey CPA with permission of the New Jersey CPA Society.

By Stephen McCarthy, CPA, MBA

T

he American Institute of CPAs (AICPA) Examination Team is responsible for maintaining the validity and relevance of the Uniform CPA Examination (CPA Exam). The team conducts periodic research to assess the current state of the profession and the evolving requirements for newly licensed CPAs. In this endeavor, the team’s primary research vehicle is called a Practice Analysis (PA), a comprehensive project to document the state of the profession and the current role and requirements for a newly licensed CPA.

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Similar comprehensive exercises led to the computerization of the CPA Exam in 2004 and major CPA Exam updates in 2011 and 2017. The team began a new PA in early 2019 with a goal of introducing an updated exam later in 2020.

An observant student will notice from the above dates that the pace of change to the exams seems to be accelerating — something longtime practitioners have observed about the requirements of the accounting profession. As the rate of change accelerates, that acceleration itself is a new challenge.

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Adaptability and the ability to constantly learn throughout our careers are becoming increasingly important.

The examination blueprints The AICPA developed the Uniform CPA Examination Blueprints to organize the content of the CPA Exam and assess the minimum knowledge and skills required of newly licensed CPAs. Changes in the workplace, especially the impact of technology, require changes in the exam and this blueprint.

“

Adaptability and the ability to constantly learn throughout our careers are becoming increasingly important.

Bloom’s Taxonomy Another tool employed by the Examination Team is Bloom’s Taxonomy: remember and understand, apply and analyze, evaluate and create. This classification of different objectives and skills is used by educators across many different disciplines, not just accounting. In this hierarchy, learning at the higher levels (e.g., in the final year of an accounting program) is dependent upon attaining prerequisite knowledge and skills at lower levels (e.g., entry-level courses).

The AICPA has adopted a skill framework for the CPA Exam based on Bloom’s Taxonomy. The use of a framework like this ensures that core knowledge and essential skills are properly evaluated.

What is changing The challenge for this PA is to decide which topics to retain and which to remove from the exam. There is a more comprehensive look at technology, data analytics and automation. In the PA’s first phase, several findings were identified that more broadly demonstrate technology’s impact on CPA practices. These findings, leading to new exam questions, include: 4 Understanding the business. It is not business knowledge for the sake of business, but rather applying business knowledge in financial reporting, tax preparation, audit, attest and review services 4 The need for a digital and data-driven mindset and the use of data analytics 4 Increased reliance on internal control over financial reporting — System and Organization Controls (SOC 1 reports) In general, the new CPA Exam questions involve moving higher in Bloom’s Taxonomy; from remembering to applying, from applying to analyzing, and beyond analyzing to evaluating.

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What to expect “Candidates can expect to see more and more content related to technology going forward — from your more basic IT-related terminology to understanding and analyzing automated processes and controls,” says Catherine Miskiv, CPA, exam content manager at the AICPA. “We also encourage all candidates to take the sample test. It will provide you with a good idea of how the exam works and includes Excel for you to use when answering questions.”

The sample test is available at aicpa.org/becomeacpa/ cpaexam/forcandidates/tutorialandsampletest.html.

How to prepare for change Educators must enhance the curriculum by incorporating higher-order skills into the coursework. Group projects and presentations may be particularly helpful in applying business knowledge.

The biggest burden of these changes will, of course, fall on the candidates. The CPA Exam was already rigorous, and for many, it will be even more demanding. Yet, there are more resources available for candidates to help them understand the material. Those candidates who have practical experience will undoubtedly have an advantage.

Without a doubt, these changes will create distress for some candidates. However, in keeping with the desired goal to see that the exam remains current, relevant and reliable, these changes are necessary. Moreover, everyone will benefit if standards remain high and a steady pool of candidates successfully completes the CPA Exam.

Stephen McCarthy, CPA, MBA, is the owner of The Presidents Forum.

Contact him at stevemccarthy@thepresidentsforum.com.

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{ Human Resources | Virtual meetings }

Best Practices for

Working Remotely

Reprinted from Pennsylvania CPA Journal and used with permission of the Pennsylvania Institute of CPAs.

By Christina M. Olear, CPA

W

ith the eruption of COVID-19 infections in the spring of 2020 and the subsequent work-at-home mandates, use of videoconferencing platforms such as Zoom, Webex, and Microsoft Teams shot through the roof.

Zoom surpassed 300 million daily participants as of the end of April, significantly greater than the 10 million participants indicated for December 2019 — despite widely reported privacy and security issues.1 Time will tell, but it seems some of our “temporary” ways of working remotely due to the pandemic may be here to stay.

Without a doubt, there are advantages and disadvantages to working remotely.

The advantages include less wear and tear associated with commuting, as well as the associated time and cost savings of not going into the office. Additionally, there may be

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productivity boosts related to less time spent chatting about nonwork topics at the office. Some folks envisioned working remotely as a dream scenario — until they experienced it firsthand this past spring.

The disadvantages of remote work include less human interaction, potential technology issues, virtual meeting pitfalls (such as fewer nonverbal cues), a small amount of space on the screen to work and see others, less participant engagement (due to multitasking during meetings) and household interruptions.

The disadvantage of less human interaction is significant for several reasons. Face-to-face interactions with colleagues can be a large part of our support and social network. It can also be easier to work on projects and solve problems in person. Fewer impromptu networking opportunities could make it more difficult to achieve a promotion. It’s also harder to demonstrate leadership skills virtually.

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“

Inefficient virtual sessions cost businesses $34 billion per year, and this was before COVID-19.

As we move past the most restrictive days of the pandemic and are provided more work options, the best path for many could be a combination of both remote work as well as time at the office.2 Since many offices will keep virtual work elements post COVID-19, below is a list of some remote-work best practices.3

The art and science of virtual meetings Remote meetings with colleagues can be challenging. Many remote meetings, in fact, are not very useful. Inefficient virtual sessions cost businesses $34 billion per year, and this was before COVID-19.4 Having a plan will make your efforts more productive and efficient. In this section, I look at the art and science of productive remote meetings.

Art of a productive meeting The art of a productive meeting helps ensure proper participant engagement and a positive, productive experience.

• Focused participation: A big challenge of remote meetings is appropriate participant engagement. Some participants don’t engage enough during the sessions, and others engage too much. When someone introduces redundant or irrelevant content, it’s critical to keep the meeting on track while also being polite. Asking questions directed to a specific colleague is an effective way to ensure the person with the most applicable background and experience answers the item.5 • Encourage participation at the beginning: At the meeting start, have each participant briefly indicate their objectives for the meeting.6 This helps to energize folks and is an opportunity to work out technical kinks.

The goal is a productive meeting with active participant engagement. People will leave the session with a definite sense of future-oriented momentum instead of thinking that the meeting was a waste of time.

• Collaborate on a virtual whiteboard: In Zoom, for example, everyone can annotate the same document on the screen in real time. This can help encourage participation and teamwork.

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• Ask questions at designated intervals: Some folks may be waiting for an opportunity to ask a question or provide a comment. Sometimes it’s not easy to find an opening to talk without interrupting others.

• Have fun! Meetings can be productive and efficient while also adding a slice of fun. An appropriate joke or funny comment at the beginning of the meeting or during the session can lighten a serious or draining meeting and provide a mental break. It’s essential to bring the meeting back on track without too much delay, though, in order to finish the agenda items on time.

Science of effective meetings The science of effective meetings is managing the technical aspects of ensuring everyone received the invitation and agenda, can access the meeting and is engaged in the next action steps: • First off, it’s necessary to determine if a meeting is required.7 If an email or other communication can work, one of these may be much more efficient.

• Invite only necessary participants to the meeting.

• Ensure everyone has a muted microphone when not talking.

• Ensure everyone receives the meeting invite and agenda in a timely matter. The agenda should include items assigned to be discussed by others. Assignments help ensure participation.

• Send an email reminder to participants the day before the meeting.

• During the meeting, stick to the agenda as closely as possible.

• At the end of the meeting, ensure there are clear follow-up steps, action items assigned, and the next meeting date is planned.

• End the meeting on time.

• Have a backup plan for technology issues. Having an extra computer/tablet/iPad on hand will buy you some time as you wait for a computer repair. Also, make sure there is an ability to access the meeting by phone only, which allows listening to the meeting if a participant can’t access it via the internet.

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{ Human Resources | Virtual meetings }

productivity due to a change in the routine. Ensure you make plans to connect with others regularly. Be sure to schedule social breaks in your calendar, such as lunch with friends. It’s essential to get out of the house for breaks and engage with the rest of the world.

General Strategies • Set a work schedule based on your productivity levels: If you are a morning person, it may be best to schedule your hardest mental tasks for the morning.

Scheduling meetings in the afternoon can work better for the morning person if these sessions are less mentally taxing. Scheduling meetings in blocks is best for productivity and concentration instead of having them scattered throughout the day.

• Be productive: Instead of trying to do everything on your list, follow the 1-3-5 rule instead. You can choose to complete one big task, three medium tasks, or five smaller tasks. This rule helps with task prioritization and time management. Minimize procrastination by focusing on completion of your most challenging task early in the day. Another tip is to use apps that help reduce distractions. Brain.fm has a variety of soundtracks that promote focus. Some tools facilitate the lockdown of your computer or selected websites, such as Freedom, LeechBlock, and Mindful Browsing.8 • Set up a dedicated work space: A space just for work helps create barriers between work space and personal space, which will help keep you focused because a dedicated area can help minimize distractions from family members. Conversely, boundaries may also help those who suffer from working too much when doing so remotely.9 • Switch it up and be social: As the lockdown orders are eased, it is essential to get out of the house for breaks and engage with the rest of the world. Working from a coffee shop or other place can lead to increased

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It’s important to remember that virtual meetings are still relatively new for many people. Things will go wrong at times (pets will show up or kids will share their thoughts), so it’s best to react with kindness and a sense of humor. In another year, I suspect many of us will be very proficient in using remote working technologies.

1 Tom Warren, “Zoom

Grows to 300 Million Meeting Participants Despite Security Backlash,” The Verge, (April 23, 2020). www.theverge.com/2020/4/23/21232401/zoom-300-million-users-growthcoronavirus-pandemic-security-privacy-concerns-response Libby Sander, “It’s Not Just the Isolation. Working from Home Has Surprising Downsides,” The Conversation ( Jan. 14, 2019). https://theconversation.com/its-not-just-the-isolation-working-fromhome-has-surprising-downsides-107140 2

Jane Hurst, “8 Best Practices for Successful Remote Workers,” Glassdoor ( Jan. 3, 2020). www. glassdoor.com/blog/8-best-practices-for-successful-remote-workers 3

Lights, Camera…Productivity! Your Guide to Better Virtual Meetings, Navigate. www.navigatecorp. com/wp-content/uploads/2020/06/sw.nav_.eBook_.NEWBRANDVirtualMeetings_200630.pdf 4

5

Ibid.

6

Ibid.

Jeff Love, “Remote Working Perils – A Collection of Helpful Information,” Cyber Lancers (April 1, 2020). www.cyberlancers.com/blog/remote-working-perils 7

Melanie Pinola, “The 7 Biggest Remote Work Challenges (And How to Overcome Them),” Zapier, (March 18, 2020). https://zapier.com/blog/remote-work-challenges 8

9

Ibid.

Christina M. Olear, CPA, is an accounting instructor, business department program coordinator and project supply chain professor in charge at Pennsylvania State University Brandywine in Media; and is a member of the Pennsylvania CPA Journal Editorial Board. She can be reached at cmo16@psu.edu.

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WISCONSIN MONDAY, NOV. 16 – FRIDAY, NOV. 20

Mark your calendars for Wisconsin CPA Week on Monday, Nov. 16 – Friday, Nov. 20!

Join us in recognizing your hard work and positive impact on individuals, businesses and communities throughout the state by:

H Using #WisCPAsWeek when posting photos, videos and information on your social media pages.

H Tagging the WICPA (@WisCPAs) in photos and videos on Facebook and Twitter.

H Emailing your pictures and videos to membership@wicpa.org for a chance to be featured in our social media posts.

H Visiting wicpa.org/WisCPAsWeek to download graphics that you can add to your email signature.

H Reminding your clients in an email why they can count on you.

The WICPA has proudly supported the CPA profession for 115 years.

We are proud of the work you do, the difference you make and the way you represent the CPA profession. THANK YOU!

#WisCPAsWeek wicpa.org/WisCPAsWeek

PRSRT STD U.S. POSTAGE

The Magazine for Wisconsin CPAs

PAID

Milwaukee, WI Permit No. 5845

Wisconsin Institute of Certified Public Accountants W233N2080 Ridgeview Parkway, Suite 201 Waukesha, WI 53188