On Balance Magazine - May/June 2017

May | June 2017 | Vol. 13 No. 3 A publication of the Wisconsin Institute of CPAs | wicpa.org

True value William L. Komisar, CPA, J.D. WICPA Board Chair | 6

Plus: Increase your value with strategic thinking

| 16

Prepare for partnership tax audit rules changes | 28 Test your ethical leadership skills | 31

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PLANNING FOR LIFE. PROVIDING PEACE OF MIND.

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In doing so, we help deepen your client relationships and broaden the scope of your practice. Call 262-814-1600 today to learn more and to see the client collaboration portal that is opening doors for other CPAs. Shakespeare offers the following CE courses within your office: Financial Planning for CPAs | 1040 Planning Opportunities | Tax Planning with Investments Call 262-814-1600 to book this workshop for your office.

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I N I T Y PA R T N E R

A publication of Wisconsin Institute of CPAs | wicpa.org

May/June 2017 Vol. 13 No. 3

6 Features

Columns

6 True value

28 TAX

New WICPA Board Chair William L. Komisar, CPA, J.D. finds purpose in service.

Coming changes to partnership tax audit rules Prepare for revisions to several Internal Revenue Codes that will change the way partnerships are audited and how taxes related to partnership examinations are collected.

By Cynthia M. Hodnett

12 Three tactics of authentic leaders Become an authentic leader to succeed and achieve better results at work.

By Tim Jipping, CPA, CGMA

By Robert A. Mathers, J.D., CPA, ABV, PFS and John A. Sikora, J.D.

By Jon Lokhorst

21 Organizational skills for the overwhelmed Consider these helpful tips to get organized without feeling inundated.

By Joseph Feest

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31 INDUSTRY

Are you an ethical leader?

Discover several key principles that CPAs must follow to become ethical leaders in times of crisis.

16 Multiply your value with strategic thinking skills Gain strategic thinking skills and learn how to build them into your role as a finance leader.

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By Edward H. Rueter, CPA

Departments 2 Odds & Ends | news briefs 3 Outlook | chair’s letter Membership Matters | member benefits

34 TECHNOLOGY

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Is there an open-door policy on your network?

11 In Touch | president & CEO’s message

A multi-layered security strategy is your company's best defense against cyberattacks.

26 Memorials | departed members

25 Kudos | members in the news

By Steve Hyde and Abe Babler

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Odds & Ends 2013 Apex Award for Publication Excellence 2017–2018 WICPA OFFICERS/BOARD MEMBERS Chair William L. Komisar, CPA, J.D. Chair-elect Michael D. Akers, CPA, CBM, CFE, CGMA, CIA, CMA, Ph.D. Past-chair Steven G. Handrick, CPA, CGMA Secretary-treasurer Katherine L. Hauser, CPA, CGMA Directors Jon C. Gaines, CPA, CGMA, MBA Ryan J. Hanson, CPA, CGMA Patrick G. Hoffert, CPA Debra L. Lenz, CPA, CGMA, CIA, CRMA Terri M. Lillesand, CPA Matthew A. Los, CPA Steven A. Pullara, CPA Matthew J. Schaefer, CPA, CGMA Angela C. Thomas, CPA AICPA Council Rick E. Dreher, CPA, CGMA Neil Keller, CPA, ABV, CVA President & CEO Dennis F. Tomorsky, CPA, J.D., CGMA Chief Financial & Operating Officer Tammy J. Hofstede Vice President of Communications Amy E. Gaeth Editor Cynthia M. Hodnett

Pewaukee CPA firm changes its name Hartwig, Fredricks & Pelzek LLP has changed its name to Hartwig, Norman & Leskovsek LLP. The office remains in the same Pewaukee location at 2831 N. Grandview Blvd., Suite 110.

AICPA updates guidance for CPA personal financial planners AICPA offers Updates to the Personal Financial Planning Body of Knowledge (http://tinyurl.com/aicpaUPFBK). The updates integrate tax throughout all service areas of the document. They also provide more clarity on elder planning, closely held business planning, education planning and client relationship building.

Wipfli named to Bob Scott’s Insights Top 100 VARs Wipfli LLP was named a member of Bob Scott’s VAR Stars for 2016, a group of 100 organizations honored for their accomplishments in the field of reselling and implementing enterprise resource planning and mid-market financial software. Members of the VAR Stars were selected based on factors such as growth, industry leadership and recognition, and innovation. Selection is not based on revenue and those firms chosen represent a wide range of sizes and many different software publishers of accounting software.

Article: Key competencies of a top staff accountant What are the top 10 qualities staff accountants should cultivate to be at the top of their game? According to the Journal of Accountancy article, “10 competencies of top staff accountants,” they are: accuracy, stepping back, hitting deadlines, keeping managers informed, helping their managers, professional integrity, mastering time management, conquering emails, understanding Excel and improving themselves (http://tinyurl.com/toptencompetencies).

Copy Editor Joan Bahr Design & Layout Brett Stallman Printing Delzer

Join us online!

On Balance is published six 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 (WI/MN); Fax: 262-785-0838; email: jessica@wicpa.org. Statements and opinions expressed are those of the authors and not necessarily those of the WICPA. Publication of an advertisement does not constitute an endorsement of the product or service by On Balance or the WICPA. Articles may be reproduced with permission. © Copyright 2017 On Balance.

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2017 Summer Hours The WICPA will close at noon on Fridays, June 9 through Sept. 1.

WANT YOUR BUSINESS MENTIONED IN ODDS & ENDS?

Email your announcement to cynthia@wicpa.org.

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OUTLOOK | CHAIR’S LETTER “Whatever your desire, please get involved with the WICPA and become a leader. Our profession and world need you.”

CPAs and leadership: Visions of the future

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s your incoming WICPA chair, I’m humbled and appreciative of the opportunity to meet the needs of our members. This issue of On Balance focuses on leadership, something that we as CPAs embrace and use in our practices, companies and profession.

Fortunately, we’ve chosen a profession that provides us the tools to navigate our changing world. When I began my career, I used an adding machine, and the thought of purchasing a $400 Texas Instruments calculator was overwhelming. Tax returns were prepared manually and copied on wet paper copy machines.

In a few years, I thought the copies would fade and erase the records. Also, there was more concern about accounting and tax compliance than about the planning that clients truly needed.

Contrast this with today’s world of social media: the immediate and often demanding challenges of clients, and the fact that compliance is a basic expectation and planning is ongoing. Today’s issues include record security, internal controls, insurance matters, estate planning, and lease treatment. Storage is in the cloud, millions of emails are sent daily and meetings often include people joining from remote global locations.

Our national accounting agenda reflects those wide-ranging topics. At a recent AICPA Council meeting, the focus was on cybersecurity and data storage in secure websites for financial statements. Other topics included international standards and global relationships, plus how the AICPA and WICPA want to maintain practical guidelines for nonpublicly held companies.

The only way we make progress is to have leaders. For years, I paid my WICPA membership dues and added it to my resume and thought that was enough. I was involved in many other not-for-profits. However, I always felt I hadn’t given back to the profession.

That started to change when I became involved with the WICPA Educational Foundation, which educates students,

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teachers and the public about opportunities available to CPAs. I was asked to serve on the WICPA Board of Directors, which has given me the opportunity to meet many peers.

Now as chair, I ask that each of you stretch your skill sets and get involved with the WICPA. There are many ways to get involved: • Advocacy. Encourage our state legislators to not impose sales tax on services, define educational standards for the Uniform CPA Examination and continuing education or simplify the tax codes.

• Give back. Support the Educational Foundation to help others get involved in our profession.

• Educate and organize. Move professional learning forward by volunteering on a tax or industry conference planning committee or presenting at a conference or breakfast program.

Whatever your desire, please get involved with the WICPA and become a leader. Our profession and world need you.

William L. Komisar, CPA, J.D. is a principal at CliftonLarsonAllen LLP in Milwaukee. Contact him On Balance May | June 2017 at 414-238-6800 or bill.komisar@CLAconnect.com.

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2017 WICPA CONFERENCES

X Marks

the Spot wicpa.org/conferences

Set your sights on these 2017 WICPA Conferences.

x School District Audit x SECOND FALL LOCATION! CPAs in Industry Fall Wednesday, May 17

Monday, Oct. 23

x School District Audit x Tax Thursday, May 18

x CPAs in Industry Fall

x Accounting, Auditing & Financial Management

x Nonprofit &

x Technology

Monday, Sept. 18

Health Care Financial Monday, Sept. 25

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Thursday, Nov. 2 - Friday, Nov. 3

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Tuesday, Nov. 14

Thursday, Nov. 30 - Friday, Dec. 1

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MEMBERSHIP MATTERS “The WICPA staff is very enthusiastic to bring you these new programs and activities. We encourage you to attend our events and look forward to your feedback!”

Happy new (fiscal) year!

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ith May 1 marking the start of our new fiscal year, I’d like to take this opportunity to provide a sneak peek of how we plan to take your membership, the WICPA — and the accounting profession — to new heights.

This is an exciting time for staff and members because of the many new initiatives coming this year. Through member focus group results and the WICPA strategic plan, we have added new programs, services and activities for networking, engagement, volunteering and expanding knowledge to keep you current in your profession.

Over the last year, we have continued to explore avenues to serve our CPAs in industry. We have expanded our publication, On Balance, to include more industry related content, as well as formed an industry focused editorial planning committee for input on topics important to CPAs in industry.

In serving our members in outer state areas, we have increased several continuing education programs in more locations. One example is that we currently hold two CPAs in Industry conferences in southeastern Wisconsin. These conferences have been very successful, so we are expanding to four conferences, adding locations in Wisconsin Dells (October) and Green Bay (April 2018).

These conferences provide a variety of topics from economic and technical updates, to technology and human resources.

Networking events have been added to Madison, Milwaukee, La Crosse, Eau Claire and northeast Wisconsin, including a second golf outing in Appleton this August. A bowling tournament is scheduled for next April to have some fun and arouse company competition after tax season is over. We will also have a traveling trophy for “bragging rights” and defending the title for the following year.

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Starting in the fall, our breakfast meetings and seminars will have reduced fees for all retired, part-time, unemployed and leaveof-absence members to assist in supporting continuing education.

Our $50 early bird discount will remain for early registration at all conferences and will be new for seminars, increasing the discount from $30 for early registration.

Our New CPA Banquet has been enhanced to provide CPA certificates from the Department of Safety and Professional Services.

The certificates will be presented by the Accounting Examining

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Board Chair John Scheid, CPA. We encourage all members to attend and support the new CPAs entering the profession.

The most exciting development we have for members this year is the launch of our new website this fall. The website will be redesigned with streamlined navigation and increased functionality. Several new features include a responsive design for mobile devices, all-in-one access to your profile, CPE materials, firm administrator access, social communities and mentor programs, to name a few. Watch for more updates to come!

The WICPA staff is very enthusiastic to bring you these new programs and activities. We encourage you to attend our events and look forward to your feedback!

Tammy J. Hofstede is chief financial and operating officer at the WICPA. Contact her at 262-785-0445 ext. 4518 or tammy@wicpa.org.

it’s time to

renew

your membership keep your vital member benefits coming If you have not yet renewed your 2017–2018 membership, visit wicpa.org/renew for quick and easy online payment to keep your valuable member benefits coming, including On Balance magazine.

Pay your dues in the “Renew My Membership” section on the Members page. For information regarding your membership or username and password, contact Jessica Murphy at 800-772-6939 ext. 4502 or Jessica@wicpa.org.

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Photography by Adam Ryan Morris

William L. Komisar, CPA, J.D., volunteers at the Jewish Home & Care Center in Milwaukee.

True value

New WICPA Board Chair William L. Komisar, CPA, J.D. finds purpose in service

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Volunteering helps Komisar develop skills in communications, leadership and servicing people with needs.

By Cynthia M. Hodnett

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erving others is a mission that William L. Komisar, CPA, J.D. has followed throughout his career.

It’s a belief that Komisar developed while assisting his father, Ben Komisar, and his uncle, Norman Komisar, in their accounting practice as an undergraduate and law school student at the University of Wisconsin-Madison.

That experience left a lasting impression on the younger Komisar’s life.

“My father was a workaholic, so working with him was a way to spend more time with him,” he said. “I saw how he related to people, how hard he worked and how much he helped people.”

Komisar will bring that same drive and commitment to his role as the new chair of the WICPA Board of Directors. A WICPA member since 1978, he is also a past-chair of the WICPA Educational Foundation, Inc.

Bridging the gap As new board chair, Komisar plans to help the organization increase its membership and boost member engagement.

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“I want to reach out to leaders at large and small firms and industries and educate them about why an organization like the WICPA is important,” he said. “In my generation, people at our firm would say, ‘You’re a CPA now, so now you should become a member.’ It looks nice on a resume and when you’re prospecting for a client. We’ve got to show people why there’s more to being a member beyond joining. We need to show them that the WICPA can offer them more value, whether it’s advocacy or important issues affecting our profession.”

Addressing those issues requires attracting and retaining a diverse membership, which is central to ensuring the future of the WICPA, he said.

“There’s a huge gap between those like me who’ve been around a long time and the young people when it comes to getting involved in our profession and our organization today,” he said. “That’s true with other nonprofit organizations, too. When I go to board meetings, there’s only the 50- and 60-year-olds. You don’t see a lot of 30- and 40-year-olds. We need the diversity, in terms of youth and career backgrounds. The world is changing, especially with technology. We need people who have that experience.”

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Future growth and relevance will also require the organization to reach out to accounting practices and industries of all sizes.

“There are members, from sole proprietors to those working at firms with hundreds and thousands of employees,” he said.

“We and the AICPA try to be all of those things to all people, which can be challenging. If the same mandate comes down for a SEC-registered firm and it impacts the individual, how do we make sure both of those viewpoints are heard? I think it’s easier for the bigger firms to use their financial and lobbying clout to address those rules. But what about the smaller firms? There are a lot of rules that have no application to clients they serve.

How do we keep our profession together and provide services that various groups need?”

Ties that bind Komisar began his career at Komisar Brady & Co., LLP after graduating from law school in 1978. There, he worked in a broad range of industries, including health care, professional services, manufacturing, distributing, construction and printing.

He also worked with mergers and acquisitions and consulting with privately-held businesses. Last year, Komisar Brady & Co. merged with CliftonLarsonAllen.

“I’ve always enjoyed helping clients,” he said. “The CPA profession has helped me understand and care about people a lot more. I get very involved with my clients. I know their kids and grandkids. And, I’ve been there, unfortunately, when they have a death or an illness or happy event. If you do it the right way, you become part of their family, especially when you do a lot of tax or estate planning.”

Kathryn L. Bennett, CPA, CGMA, principal of Commercial Services at CliftonLarsonAllen LLP, described Komisar as loyal, intelligent and caring. The two, who have known each other for 30 years, met when Bennett was hired at Komisar Brady & Co. after she graduated from college.

“My introduction to working with Bill was on a new client,” she said. “Bill asked me to assist this client with what I thought at the time was very little instruction. As it turns out, he had

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Komisar speaks with a resident at the Jewish Home & Care Center.

the utmost faith in me to handle the project, and I still reflect on how much I learned from this experience and how it helped build my confidence.”

Bennett recalled how a mutual client was going through a difficult transition in ownership of his business and benefited from Komisar’s positive attributes and expertise.

“At times, it seemed like there was no path forward to resolving very contentious discussions and issues,” she said. “At the point it seemed that both sides were at a standstill and unable to continue, Bill was able to bring both sides together and managed to have both give in a bit to work toward an agreeable solution.

While all other advisors involved were stoking the fire and unable to move any dialog forward, Bill demonstrated strong leadership to come up with a workable solution.”

In addition to the WICPA, Komisar volunteers with other groups, including the Jewish Home & Care Center and its foundation, and currently serves on its boards and executive committee. He serves on the audit and compliance committee of Children’s Hospital of Wisconsin, plus several other organizations.

“Volunteering allows me to make an impact on my community,” he said. “I enjoy it so much, and I get more out of it than I put into it.”

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WILLIAM L. KOMISAR, CPA, J.D. 2017–2018 chair of WICPA Board of Directors Principal, CliftonLarsonAllen LLP, Milwaukee

EDUCATION: Bachelor of Science in Accounting and Juris Doctor, UW-Madison FAMILY: Wife, Becky, and three grown children HOBBIES: Wisconsin sports fan

Cynthia M. Hodnett is editor of On Balance magazine.

Contact her at 262-785-0445 ext. 4516 or cynthia@wicpa.org.

Go Badgers and Bucky! Komisar is a diehard Wisconsin Badgers fan.

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Welcome!

NEW BOARD MEMBERS The WICPA Board of Directors represents the membership, exercises leadership, participates in strategic planning, and approves the annual WICPA budget, bylaw amendments, selection of auditors, and other actions relating to organizational governance. The board consists of 15 members. New members began serving after they were elected May 4, 2017, at the Member Recognition Banquet and Annual Business Meeting.

RETURNING BOARD MEMBERS CHAIR William L. Komisar, CPA, J.D., principal, CliftonLarsonAllen LLP, Milwaukee

CHAIR-ELECT Michael D. Akers, CPA, CBM, CFE, CGMA, CIA, CMA, Ph.D., Charles T. Horngren professor of accounting and chair, Department of Accounting, Marquette University, Milwaukee

PAST-CHAIR Steven G. Handrick, CPA, CGMA, retired partner, Hawkins Ash CPAs, LLP, Green Bay SECRETARY/TREASURER Katherine L. Hauser, CPA, CGMA, controller, Herzing University, Menomonee Falls DIRECTORS Ryan J. Hanson, CPA, CGMA, financial accounting manager, MGIC Investment Corporation, Milwaukee Debra L. Lenz, CPA, CGMA, CIA, CRMA, audit lead, Harley-Davidson, Inc., Milwaukee

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

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

Terri M. Lillesand, CPA, tax shareholder, Schenck SC, Sheboygan Matthew A. Los, CPA, assistant controller, Bradley Corporation, Menomonee Falls Matthew J. Schaefer, CPA, CGMA, vice president of regulatory compliance, Bank of Wisconsin Dells, Wisconsin Dells

AICPA COUNCIL DIRECTOR Steven A. Pullara, CPA, partner, Smith & Gesteland LLP, Middleton

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

Rick E. Dreher, CPA, managing partner, Wipfli LLP, Green Bay Neil R. Keller, CPA, ABV, CVA, partner-in-charge, tax services, Sikich LLP, Brookfield

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IN TOUCH | PRESIDENT & CEO's MESSAGE “This is my personal invitation to you to join a WICPA committee and to volunteer for WICPA leadership roles.”

Leadership journeys

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ach of our individual leadership journeys is unique.

Sometimes we have influence over the path, timing and manner of developing and applying leadership skills. In many cases, however, we have limited control over the selection of our leadership skill-building activities, and even less control over the timing of opportunities to apply leadership skills we have developed.

My own leadership journey began with joining a WICPA committee where my initial participation was limited to simply attending meetings to listen and observe. After attending a couple of meetings, I grew comfortable enough with the few members of the small committee to speak up and share my thoughts.

When the committee chair’s term ended, the committee members were asked if anyone on the committee would agree to serve as chair. At that time, my traditional introverted response to a call for volunteers was to assume that my important technical work outside the committee left no time to spend a few hours a year to chair a committee, and that avoiding eye contact with the person asking for volunteers would let me off the hook.

After a few seconds of uncomfortable silence in response to the request for volunteers, the committee chair suggested we take a short break. During the break, the chair took me aside and told me that the comments I had shared during committee meetings had led to valuable committee discussions, and he then asked me to serve as committee chair. The flattering invitation, and the chair’s expression of confidence in my abilities, convinced me to change my prior behavior patterns and the trajectory of my leadership journey.

My decision to join and eventually chair that initial WICPA committee led to additional leadership opportunities, and to connecting with many fellow professionals who have become

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lifelong friends and greatly influenced my career. My WICPA committee participation has taught me the value of inviting others to take leadership roles whenever possible, and requesting leadership opportunities for myself to further refine my own skills while having a positive impact on others.

This is my personal invitation to you to join a WICPA committee and to volunteer for WICPA leadership roles. I know your WICPA participation will have an extraordinarily positive impact on your leadership journey and career.

Dennis F. Tomorsky, CPA, J.D., CGMA is president & CEO of the WICPA. Contact him at 262-785-0445 ext. 4519 On or dennis@wicpa.org.

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Three tactics of

AUTHENTIC

LEADERS 12

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By Tim Jipping, CPA, CGMA

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e’ve all been there — working for supervisors who were either unnecessarily mysterious or infuriatingly inconsistent. Either way, these managers leave us confused or at least spending needless energy preparing for or decompressing from these interactions.

We also have the good fortune of working with leaders who are approachable, patient and pleasantly consistent. There’s an ease of interacting with these people who leave us energized and uplifted.

Which leader do you think has better results? More importantly, what type of leader are you? Do your team members shudder at the thought of having to deal with you? Or, do they actively engage while regularly seeking your counsel?

Fact versus fiction There’s no single way to lead a team. And not all methods or approaches are inherently good or bad. Actually, leadership tactics are typically dependent upon circumstance. For example, a military leader in charge of a platoon is assigned to a highly dangerous mission in an unstable part of the world. Failure is not an option, and it’s probably not the best time to challenge team members with “a good learning opportunity.” The leader must demonstrate a sense of calm, resolve and decisiveness. It’s not exactly the best time to hem and haw over choices. However, a planning meeting for an audit engagement doesn’t necessarily call for a single point person barking out orders, unless it’s being conducted at a military base in the Middle East!

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Effective leaders must be able to distinguish between situations more nuanced than these. However, if they’re able to master this discernment, their effectiveness is limited to the trust and support garnered from their team. Besides, there’s no leader if no one’s following. Therefore, there’s a more fundamental necessity for truly remarkable leadership: authenticity.

Authentic is defined by the Merriam-Webster dictionary as “worthy of acceptance or belief as conforming to or based on fact; not false or imitation” and “true to one’s own personality, spirit, or character.” Authenticity connotes someone as being genuine or sincere, someone who can be trusted.

Very rarely in life do we prefer the imitation over the real thing. Often, we’re temporarily persuaded that we enjoy the imitation but nearly always come away with a letdown. What about brand knockoffs? Ever bought an imitation brand name article of clothing, or shoes, or sunglasses? At first, we’re hard-pressed to find anything wrong with them. In fact, we commend ourselves upon purchase — all the benefits for a fraction of the cost. That is, until buttons begin to fall off, or the soles break down, or the coating on the sunglasses begins to

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peel. It’s at this point we wish we would have initially made the decision to buy the real thing.

The same is true with our leaders. At first, we can be drawn in by the personality of certain leaders to only later see that façade fade away and their true colors shine. Stephen R. Covey characterized these differences in his famed book, “The 7 Habits of Highly Effective People,” as the personality ethic (surface level) and character ethic (to the core). When you spend enough time with people — like your work teams — you’re able to see who they truly are, the good and the bad. But they also begin to see the real you.

Unleash your authentic leadership So what steps can you take to become a more authentic leader? Here are three tips to help you get started.

1. Become an optimist. It’s easier to live a life expecting the worst and being pleasantly surprised when things actually turn out right. It’s more difficult (and some would say more naive) to live in a manner where you plan and anticipate for the best only to fall short from time to time.

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Truly effective leaders are optimists because no one wants to follow a pessimist. In moving from pessimism to optimism, a little goes a long way. Start by noticing your own self-talk. How do you filter and interpret certain information and events that happen to you? Are negative events your fault, but positive events accidents? When you notice yourself slipping into negative self-talk, imagine you were giving someone else advice going through the same situation. You’re likely much harder on yourself (needlessly) than you would be with someone else. So, advise someone else on this situation, and take your own advice.

2. Become aware of your insecurities. We all have insecurities; this is not abnormal, and not all insecurities are bad. Insecurities are essentially a lack of confidence in oneself in a particular area, and certain levels of insecurity drive us, often motivating us to be better people. However, many are not so good, often hindering our ability to perform and grow. Do you have a desire to be liked?

Sure, we all would prefer everyone like us. But is it so important to you that you’re willing to let it compromise your decision-making? Is short-term likability more valuable to you than long-term and large-scale effectiveness? This isn’t a license to be a jerk, but the more aware you are of the insecurities affecting your judgment the more likely you are to strip them of their power over you. Other insecurities you might face could be the inability to make decisions, the fear of displaying any sort of emotion, or even simply a general lack of poise.

The key is understanding what affects you most, and taking steps to overcome.

3. Become healthier. Taking care of oneself physically is one of the most common themes among the best leaders.

These leaders know that in order to help others perform at a high level, they must also be able to perform optimally. It all starts with proper maintenance on your body. Start small. Pass on the burger once in a while in exchange for a salad. Get your body moving first thing in the morning. Eat a healthy breakfast (make sure it includes protein!). Avoid drinking alcohol within a few hours before bedtime to help with a more restful night of sleep. Pick one, then add on slowly. Before you know it, you’ll be a lean, mean, people-leading machine!

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People follow those they trust, and people don’t trust imitators. They’d much prefer an authentic person who accepts their imperfections than a liar who pretends they have none. And once you observe authentic leadership produce results, it’s an upward spiral as you gain momentum.

Soon, you’ll be filling the leadership pipeline with others who realize the character ethic is the way to go.

Tim Jipping, CPA, CGMA is a speaker and senior manager at Plante Moran in Chicago, Ill. Contact him at 312-980-2989 or Tim.Jipping@plantemoran.com.

MAKING AN IMPACT Congratulations Bill Komisar! We look forward to seeing you make a positive impact serving as chair for the Wisconsin Institute of Certified Public Accountants with your strong sense of service and drive to deliver impactful interactions for success.

CLAconnect.com ADVISORY | OUTSOURCING | AUDIT AND TAX 00-0110 | ©2017 CliftonLarsonAllen LLP

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Multiply your value with strategic thinking skills

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ore than half of finance executives in a global study by the Association of Chartered Certified Accountants and Institute of Management Accountants identified strategic thinking as critical to professional development for chief financial officers. These skills are just as important for CPAs in public accounting who want to advance in their careers or grow their firms. Strategic thinking is the key to delivering exceptional value in today’s rapidly changing, competitive business world.

By Jon Lokhorst

This article describes the essence of strategic thinking and how it differs from traditional strategic planning, along with ways to develop strategic thinking and build it into your regular routines as a finance leader.

What is strategic thinking?

Strategic thinking is the process of exploring new and improved approaches to meet customer needs. It is future-oriented, focused on future customers and their needs, not just today’s. It involves regular scanning of the horizon, watching for emerging trends in the external environment. These trends include concerns such as globalization, economic movement, demographic shifts, and regulatory changes.

Strategic thinking is also customer-focused. By observing behavior in your target market, you are better positioned to respond to changing customer needs and preferences. Strategic thinking opens the door to innovation as you discover new ways to serve existing customers, as well as new customers. The best strategic thinkers open new frontiers. Consider Steve Jobs and the iPhone as a prime example.

Strategic thinking requires an awareness of your industry and monitoring the competition.

Successful strategic thinkers differentiate their firms from competitors by offering superior customer value and effectively communicating that distinctness to the marketplace.

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Strategic thinkers possess a keen understanding of their firm’s capabilities and ways to leverage them for competitive advantage. They find ways to build or acquire new capabilities to capitalize on emerging opportunities. Strategic thinkers go beyond operational improvements to develop new business models that enhance profitability and growth.

Strategic thinking versus strategic planning Strategic thinking offers several advantages over traditional strategic planning, which by itself is insufficient to compete in today’s marketplace.

• Strategic planning concludes with a static report that often ends up gathering dust on a bookshelf. Strategic thinking is continuous, nimble, and dynamic.

• Strategic planning is a more rigid process. Strategic thinking is agile and flexible.

• Strategic planning often becomes a destination in and of itself. Strategic thinking is a journey, a means more than an end.

• Strategic planning is viewed as a project or an event.

Strategic thinking is an ongoing process.

In most firms, strategic planning is at best an annual exercise.

It’s valuable in that it prompts leaders to pause to evaluate their firms, scan the horizon, think about their customers, and establish goals and priorities. However, it doesn’t happen frequently or fast enough to address the challenges of a rapidly changing environment. Adding strategic thinking to your skillset will multiply your value — to your firm as well as to your customers.

Develop strategic thinking skills Leaders with strategic planning experience are familiar with SWOT analysis — the assessment of a firm’s strengths, weaknesses, opportunities, and threats. Strategy professor and consultant Stanley Abraham suggests building on that foundation as a step to develop strategic thinking skills.

Abraham offers six questions to go beyond SWOT analysis and cultivate deeper, “out-of-the-box” strategic thinking: 1. What other type of customer could benefit from our product (service), even if used in a different way?

2. What other products (services) could we produce for the same customer?

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3. What other products (services) could we produce, for any customers, that use the skills, techniques, technologies, and know-how that we have?

4. Is there a way of reinventing our business model that would give us a competitive edge?

5. What unmet needs do people or companies have that we could meet, even if it means acquiring the necessary know-how and expertise?

6. What are the highest growth industries now and in the foreseeable future?

Regularly asking these questions and others will stretch your thinking to generate new approaches to meet customer needs and grow your firm in the process.

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Build strategic thinking into your routines The typical pattern in this deadline-driven profession is to run from one thing to the next without pausing to think about the future viability of the business itself. It’s easy to work in the business and never work on it. Or to become reactive, rather than proactive.

Here are a few tips to build strategic thinking into your routines: Set aside TIME. LinkedIn CEO Jeff Weiner calls this “the importance of scheduling nothing.” Weiner blocks out 90 to 120 minutes each day for high-level activities such as strategic thinking. Schedule a recurring appointment with yourself for strategic thinking every week, if not daily. Guard that time as the most important meeting of your week or day.

Find a PLACE. Get away from your office and the day-to-day operational duties that reside there. My best strategic thinking happens in coffee shops, hotel lobbies, and libraries. The white

noise and a great cup of coffee add to the pleasure of knowing I’m doing what’s most important for my business.

Get OFFLINE. You may need to be online for reading and research. But get offline to do your best, undistracted thinking.

A pen and notebook are the only tools I need.

Engage your TEAM. Assign each team member one of the questions above. Gather periodically as a team to discuss what you’re thinking and explore new opportunities together.

Expand your strategic thinking skills and multiply your value as a finance leader.

Jon Lokhorst is a leadership coach and consultant with Lokhorst Consulting LLC in Williams Bay. Contact him at 612-381-6275 or jon@lokhorstconsulting.com.

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ORGANIZATIONAL SKILLS FOR THE OVERWHELMED

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"T

his is the year I am going to get organized!” How many times have you said that to yourself throughout your career? The reality is it is hard to get organized and as you attempt to do so, you may easily become overwhelmed. Yet, you know that if you're going to succeed in your job, you need to be effective and efficient — and that involves being organized.

There are two issues you must deal with when it comes to getting organized: First, you need to set up your workspace to optimize your productivity. And second — most jobs require a lot of email and use of many electronic files on your network — you need to manage all those electronic items well.

By Joseph Feest

Here are some tips to help you get organized without feeling overwhelmed.

Workspace tips The 5S principles in manufacturing — Sort, Store, Scrub, Standardize, Sustain — can be used to organize your workspace.

First, sort. Go through your personal workspace section by section and ask, “When was the last time I needed this?” Get rid of things you have not used in the last 12 months.

Now it is time to store. First, what stays on your desk? Your phone and computer peripherals are non-negotiable. The only other things that should be on your desk are those items you use daily. Set

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up your desk so those items are in places that allow for easy access. Vertical files for folders tend to work better than horizontal trays for most people because they provide clear access without going through piles (there is nothing wrong with an inbox as long as it is just that). Taking this approach should leave plenty of space for you to do your work without clutter.

“Meeting” folders and “Waiting on Response (WOR)” folders work well for many people. Any items that need to be discussed should be held in the appropriate meeting folder so you’ll be able to find all relevant information quickly for meetings. You may hold on to stuff because you need some input — that is what the WOR folder is for — it gives you one place to keep the item when you are waiting for a response.

The remaining S’s — Scrub, Standardize, Sustain — will turn your organizational skills into a habit.

Electronic tips

Color coding can be helpful. You can set up your folders so emails from certain people appear in a different color enabling you to quickly spot it in a crowded inbox. You could color code meetings — a color for internal meetings, a color for project time, a color for client/member meetings, a color for networking/ association events, and a color for follow-up reminders.

Many have tried to go “paperless” only to find that it does not work as envisioned. What works well is scanning as much as you can to .pdf using your printer/copier/scanner. After meeting with a client — scan your handwritten notes to .pdf, file the .pdf to your network filing system, and toss the paper. Now you have all pertinent files, handwritten or otherwise, in one place.

A final thought — you will not become super organized in a day. When you succeed and stay organized, celebrate! When you stumble, do not fret, just get back on track and eventually these tips will become habits. And the habit of being organized will help you be effective and efficient in your job.

Managing email is one of the biggest challenges when it comes to being organized. The following tips work with whatever email software you use — but are tailored to Outlook.

Try turning emails into tasks. Often, an email contains a task that you must accomplish. Outlook makes it very easy to turn this into a task. Right-click the message and choose “follow up” to set the urgency, add a deadline or reminder, etc.

wicpa.org

Joseph Feest is Learning and Development manager at MRA in Waukesha. Contact him at 262-696-3429 or Joseph.Feest@mranet.org.

Reprinted with permission from MRA.

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The Home and Highway policy also offers protection for your family pet. And because you’re a member of the WICPA, you could also receive a discount on your annual premium.

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

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kudos

Mike Hablewitz, CPA

Zachary T. Bloom, CPA was hired as director of local government services at Wegner CPAs in Madison.

June F. Norman, CPA was named partner at Hartwig, Norman & Leskovsek LLP in Pewaukee.

Mike Hablewitz, CPA was named partner at Wegner CPAs in Madison.

Erika Nowak, CPA was promoted to controller at Waukesha State Bank, according to The Waukesha Freeman.

Seth Kuehnel, CPA was hired as a supervisor in the tax department at Wegner CPAs in Waukesha.

June F. Norman, CPA

Katelynn Lorenzi was hired as a staff accountant at Vrakas CPAs + Advisors in Brookfield.

Ryan S. Weber, CPA was named partner at MBE CPAs in Reedsburg.

Yigit Uctum, CPA, CFE, MBA

Katelynn Lorenzi

Want your

Yigit Uctum, CPA, CFE, MBA was named partner at Wegner CPAs in Madison.

Jonathon R. Wendorf, CPA, CGMA was named partner at MBE CPAs in Wausau.

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

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memorials Elizabeth S. Peters, CPA (1927–2017)

Elizabeth S. Peters, CPA died March 15, according to the Wausau Daily Herald. She was 90. She received her accounting degree from the University of Wisconsin-Madison in 1949. She earned her certified public accounting credential in 1952. After graduating from UW-Madison, Peters joined Wipfli LLP, where she worked for more than 40 years and became a partner in 1962.

Peters was the first woman in Wisconsin to become a partner in a CPA firm, according to the newspaper. She was the first woman appointed to the Accounting Examining Board by former Gov. Patrick Lucey. She served on the board for eight years. Prior to retirement, she joined the UW Business Alumni Board. The Wausau resident joined the WICPA in 1952.

Martin D. Verhelst, CPA (1949–2017)

Martin D. Verhelst, CPA, past chair-elect of the WICPA Board of Directors, died March 17. He was 67. Verhelst graduated from the University of WisconsinMadison in 1972, according to the Wisconsin State Journal. He began his accounting career at Arthur Andersen in Milwaukee. He later returned to Madison as controller at Memorial Union, then as secretary/treasurer and controller at Wisco Industries, Inc. in Oregon. He earned his certified public accounting credential in 1975.

In 1988, he became a sole-practitioner, working with small business and professional clients. His wife, Debbi, worked with him since January 1990, starting from the basement of their home, according to the newspaper.

Verhelst incorporated his accounting practice, Verhelst CPA, S.C., with his longtime business partner, Richard Reale, CPA in 2013. A WICPA member since 1975, Verhelst served on the board as a vice president from 1989 through 1991. He served on several WICPA committees, including as chair of the Public Policy Committee and as member of the Board of Directors Nominations Committee.

He received the WICPA Spirit Award in 1992 and 2012, as well as the Outstanding Committee Chair Award in 2000 for his leadership of the Accounting, Auditing & Financial Management Committee.

He was a resident of Oregon.

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Interested?

Contact Cynthia M. Hodnett at cynthia@wicpa.org or 262-785-0445 ext. 4516.

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{ Tax | Partnership audit rules }

Coming changes to

partnership tax audit rules 28

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{ Tax | Partnership audit rules }

W

ith the recent wave of executive orders addressing various federal government regulations, confusion regarding the current state of tax law is high. What has not changed with the new administration are the new partnership audit rules.

By Robert A. Mathers, J.D., CPA, ABV, PFS and

John A. Sikora, J.D.

wicpa.org

Beginning Jan. 1, 2018, revised Internal Revenue Code Section 6221 and subsequent code sections change the way partnerships are audited, and how taxes relating to partnership examinations are collected. While partnership audit adjustments (such as adjustments to the return of a limited liability company taxed as a partnership) will continue to be made at the partnership level, the Internal Revenue Service will for the first time be able to calculate and collect tax at the partnership level, rather than collecting the resulting tax from the partners. Moreover, the partnership tax is, as a general rule, calculated at the highest individual tax rate.

This new paradigm for partnership audits was created by the Bipartisan Budget Act of 2015.

The previous rules, the so-called TEFRA audit rules, regarding how partnerships were audited date from 1982. The principal reason for the legislative change is the old rules’ administrative complexity; the process was paper and labor intensive. While providing for a partnership level examination and permitting the Internal Revenue Service (IRS) to deal with a single person (a tax matters partner), the TEFRA audit rules required notices of the commencement of proceedings and of proposed audit adjustments to all partners, and subsequent calculations of the tax due from each partner upon completion of the process.

In addition, the IRS sometimes experienced difficulties identifying the tax matters partner authorized to act for the entity, contacting that

“The new audit rules contain many traps for the unwary.

However, some things can be done in 2017 to prepare for the new audit regime.” person, or reacting to the intervention of other partners in the examination proceedings.

Given these problems, and the exponential growth in the number of partnership income tax returns being filed, it was perceived that the TEFRA audit rules contributed to: • The number of partnerships audited being substantially less than the number of similarsize corporations being audited.

• Less comprehensive examinations of, fewer adjustments regarding issues for, and less tax being collected with respect to the activity of enterprises operated in tax partnership form, compared to similar-size corporations.

• The IRS not being able to make assessments against partners due to notice difficulties, particularly as to multi-tiered partnerships, or because statutes of limitation would run out by the time they were able to reach the true taxpayer.

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{ Tax | Partnership audit rules }

While enactment of the new rules may have been principally motivated to address difficulties examining large partnerships in the real estate, financial services or other industries, they also generally apply to smaller, closely-held businesses. However, an exception permits partnerships issuing (subject to special rules relating to partners that are S corporations) less than 100 K-1s to “elect out” of the new audit regime. The election-out is an annual event that needs to be made by the partnership on a timely filed return. In addition, the election-out would not be available in certain situations, e.g., if the entity has an owner that is a trust.

The term “tax matters partner” has been eliminated under the new rules and replaced with a “partnership representative.” Unlike the previous rules, the partnership representative no longer needs to be a partner of the partnership; the partnership representative will be required to have a substantial U.S. presence.

While the tax can now be assessed at the partnership level, an election, sometimes referred to as a “push out” or “push up” election, is also available. This election would allow the effect of the partnership audit proceedings to be pushed from the partnership to the partners for payment. However, there are a host of tax and non-tax issues associated with this election, including some affected by the partnership’s (or limited liability company’s) decision-making and governance provisions.

The new audit rules contain many traps for the unwary. However, some things can be done in 2017 to prepare for the new audit regime. Planning involves adjusting partnership agreements and operating agreements to set the expectations of the owners regarding tax audit issues.

For example, it will generally be preferable, if possible, to avoid the new partnership audit rules. Therefore, entities may wish to require that, for qualifying entities, partnership returns include the election out of the new regime. The parties might also include a requirement that S corporation partners provide information about shareholders if necessary to properly make the election. The partners (or members) might also consider including a prohibition on entity interest transfers that may prevent the making of an election out of the new regime. The consequences of an owner making such a prohibited transfer would also need to be addressed.

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Operating agreements and partnership agreements might also address issues relating to the partnership representative, including how the representative will be selected or removed, standards for those occupying the position, the scope of the representative’s authority, duties to keep partners and former partners informed regarding proceedings, and, potentially, indemnification of the representative.

The owners may also wish to consider addressing whether push out elections are optional or mandatory and standards to be considered in the former case. Such agreements might also include text as to how current and former owners will share in the payment of any tax imposed at the partnership level, how the resulting rights can be enforced or secured and what should happen if the entity has been liquidated when the tax becomes payable.

Operating and partnership agreements and other documents must also consider the effect of the new rules when, for example, a person purchases or acquires by contribution interests in an entity that is taxed as a partnership, owners are redeemed, entities taxed as partnerships merge, such entities are dissolved, or other transactions involving the entity or its owners occur.

Finally, due diligence checklists for entities that acquire partnership or LLC interests need to be updated to address the new rules.

In conclusion, the new partnership audit regime will reach more than just hedge funds and real estate syndicates. The 2015 statute, effective in 2018, will affect closely-held businesses and the consequences can be severe. However, with proper planning, CPAs and attorneys can take some preventive measures now, in anticipation of the effective date, to help protect their clients.

Robert A. Mathers, J.D., CPA, ABV, PFS is a shareholder at von Briesen in Milwaukee. Contact him at 414-918-4974 or rmathers@vonbriesen.com.

John A. Sikora, J.D., is a shareholder at von Briesen in Milwaukee.

Contact him at 414-270-2512 or jsikora@vonbriesen.com.

wicpa.org

{ Industry | Ethics }

Are you an ethical leader? wicpa.org

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{ Industry | Ethics }

A

s children, we are taught the difference between right and wrong, good versus bad, and what we should and shouldn’t do. However, it’s easy to convince ourselves that there’s a gray area between the right and wrong decision. These thoughts are usually perpetuated by the pressures of everyday life, such as time, money, By loyalties or ambition. How many Edward H. Rueter, times have you said or heard someone say, “That’s good enough,” “No one CPA will notice anyway,” “It just isn’t worth it,” or “Next year we will do it right”?

Making ethical decisions is difficult in a world that consists of so many challenges and pressures. Quite simply, being an ethical leader is not a skill that we are born with or inherit; it is the ability to face life’s pressures with integrity and honesty so the people around us and after us will have the right example to follow.

As accountants and CPAs, it is easy to believe we are doing the right thing because we are in charge of handling a company’s books, auditing a set of financial statements, or helping people with their personal finances. Many in the accounting industry would say that trust, integrity and strong moral character are the pillars of accounting.

However, in a December 2015 Gallup Poll, participants were asked to rank professions with high ethics. Only 39 percent of the people surveyed believed accountants practice high ethical behavior. People who are paid money — sometimes a lot of money — to watch over the finances of a company or an individual are not considered ethical leaders by today’s society.

Why has the accounting industry lost trust?

Accounting has taken ethical hit after ethical hit over the years. Historically, reputable firms such as Arthur Andersen have collapsed because of poor decisions. Individuals have been sent to jail for improperly taking advantage of their clients, and every few years there seems to be a scandal at one of the largest companies in the industry. In Wisconsin, we had the infamous Koss Corporation fraud case, where the vice president of finance stole millions of dollars from the company. These problems seem to continue even after the industry makes new rules and standards, schools change the focus of their classes, and accountants go to prison.

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“Quite simply, being an ethical leader is not a skill that we are born with or inherit; it is the ability to face life’s pressures with integrity and honesty so the people around us and after us will have the right example to follow.”

What appears to be missing from these new rules and standards is the reinforcement of individual ethics. After all, there is no rule or standard that can’t be manipulated or broken, and no punishment that can’t be avoided. We need to focus on the core ethical lessons learned long ago from parents, teachers, and even “Mister Rogers” and “Sesame Street.” These basic standards are what keep us from making poor decisions and shape us into accountants, CPAs, and leaders who will create a future without scandal.

Build a strong ethical foundation An accountant today is often faced with pressure to succeed, maintain work-life balance, retain a job in a world of outsourcing, and meet tight deadlines. When these pressures arise, we must have a strong enough ethical foundation to make the right decisions.

We tend to justify our poor decisions with reasoning like, “This isn’t that big of a deal” or “Nobody will notice this time.” These small ethical failures can seem harmless at the time. However, these failures are known as unethical creep: the gradual process of lowering one’s ethical standards until there is a disconnect between what we think we should do and what we are really doing. This can lead us to lose perspective, devalue the right decision, and take us down the path to becoming the next fraud headline. At a minimum, these unethical steps are a poor precedent to set for our peers and subordinates.

As John Pepper, former Procter & Gamble CEO, once said, “Make sure you know what you really believe in, what you live and die by. And be clear on the mission of your life and the values you want to have guided it.”

wicpa.org

{ Industry | Ethics }

Would you pass this ethics test?

Let’s take a look at a simple situation that you might encounter on the job.

You take your new employee out to lunch, and the dessert is mistakenly left off the check. Do you say something? On the ride back to the office, do you discuss what a great deal you got? Do you act differently if your boss is with you?

Your response in this situation sets an ethical standard with the new employee as to what is and is not acceptable for a manager and an employee.

As leaders in our profession, we must set an example and make ethical decisions in all situations, even if it’s as minor as correcting a mistake on a lunch bill. In his book, “Moral Courage,” Rushworth M. Kidder states that moral courage “is simply the courage to take action for moral reasons despite risk of adverse consequences.” While it may seem easy to follow, moral courage can be put to the test when everyone’s bonus or job is on the line.

Setting a new standard

• When you’re under pressure, consult with close friends, significant others, or colleagues to find ethical solutions.

We have all faced tough situations, and facing them alone only makes them tougher.

• Remove temptations when confronted with unethical situations. Incentives like a bonus or a promotion cloud our thoughts and make it all too easy to justify a poor decision.

• Make the decision that will allow you to sleep at night and live at peace with yourself.

We must continue to reinforce these basic principles so we are ethical leaders in times of pressure, choose what is right, and set a new standard for future accountants and CPAs to follow.

Edward H. Rueter is a CPA at CliftonLarsonAllen LLP in Milwaukee. Contact him at 414-721-7652 or edward.rueter@CLAconnect.com.

When confronted with difficult situations, here are three ways we can strengthen our moral courage and prevent an unethical outcome.

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{ Technology | Cybersecurity }

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{ Financial Planning | Investing }} { Technology | Cybersecurity

Is there an open-door policy on your network?

O

By Steve Hyde and

pen-door policies with your manager are good. Open-door policies on your computer systems can be downright dangerous.

People want access to your network for identity theft, to gain financial information, payroll data, intellectual property — and they’ll do anything to get it. Often, the attacks on companies are multi-layered, utilizing a combination of information or vulnerabilities to successfully compromise the information systems. The best defense? A multi-layered security strategy.

Establish strong information technology usage policies (including change management and patch reviews)

Abe Babler

wicpa.org

Up to 70 percent of IT security issues originate from internal staff who do not follow uniform practices or begrudgingly cause damage, as recently noted by Citibank, where a system administrator intentionally shut down 90 percent of the company’s servers.

• Determine who may have access to the systems and how they may be used, and ensure that every employee reviews the policy before they start working at the company.

• Make sure your IT team is informed and that access rights are reviewed whenever someone leaves your company or changes positions.

• At least annually review the access rights of all your users. You never know if someone fell through the cracks.

• It’s helpful to have an outside assurance firm perform a compliance audit or security assessment that can determine if the internal controls are sufficient or if there are gaps that should be addressed.

Perform a vulnerability scan This service utilizes tools to analyze computers, networks and applications for potential weaknesses.

Hackers use these same tools to look for open ports within a network — potentially finding an open door to exploit your information. Using this tool can also help in creating a network inventory, as well as verification of network security.

Have a penetration test performed A penetration test uses a variety of methods for trying to exploit weaknesses in multiple areas (servers, web applications, wireless networks, mobile devices and more). Once a vulnerability is found, testers will attempt to compromise

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{ Technology | Cybersecurity }

“Often, the attacks on companies are multi-layered, utilizing a combination of information or vulnerabilities to successfully compromise the information systems. The best defense?

A multi-layered security strategy.� additional internal resources and dig deeper into higher levels of security clearance. A penetration test typically collects the vulnerabilities and presents them to IT and network managers to assist in prioritizing remediation efforts.

Companies are increasingly asking for social engineering tests to be performed alongside the penetration tests to determine if hackers can gain access by manipulating key information from employees themselves.

Having an ethical organization trying to hack into your computer systems provides a variety of benefits. Beyond identification and prioritization of vulnerabilities, the test helps your company meet regulatory requirements (and avoid fines), preserve your corporate brand and customer loyalty, and avoid costly downtime or litigation costs if a breach were to occur.

An external, independent set of eyes on your organization makes all the difference in identifying security gaps.

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Run these tests regularly This is especially important if new locations have opened, policies have changed, or if changes have been made within the IT infrastructure. Technology is constantly changing at an ever-increasing pace, and hackers are creating new methods to get to your sensitive data. In the past few years, we’ve seen a massive increase of ransomware, malicious viruses that demand payment to release your data in the Midwest.

Steve Hyde is chief information officer and director-information technology services at Schenck SC in Appleton. Contact him at 920-996-1292 or steve.hyde@schencksc.com.

Abe Babler is an IT risk professional at Schenck SC in Appleton.

Contact him at 920-996-1490 or abe.babler@schencksc.com.

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Combining our industry leading expertise with innovative technology, we take a collaborative and creative approach to problem-solving the most complex matters.

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To learn more about our Tax Law Team, please contact Robert A. Mathers at rmathers@vonbriesen.com.

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