On Balance September | October 2016

September | October 2016 | Vol. 12 No. 5 A publication of the Wisconsin Institute of CPAs | wicpa.org

Ready, Set, Roll Amy M. Manthey, CPA, CITP, CISA | 6 Senior manager, Professional Practice Group Baker Tilly Virchow Krause, LLP

Plus: 5 keys to selecting the right technology for your business

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6 transformational leadership traits to enhance your skills

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Create harmony when networking online and in person

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A publication of Wisconsin Institute of CPAs | wicpa.org

September/October 2016 Vol. 12 No. 5

6 Features

Columns

6 Ready, set, roll

26 TAX

Amy M. Manthey, CPA, CITP, CISA combines expertise in audit with a passion for technology.

10 3 adjectives that should describe your accounting technology

By Scott E. Hess, CPA

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

By Scott A. Wegner

18 Building a foundation for success WICPA Educational Foundation grant gives Menomonee Falls High School students a glimpse at accounting careers.

By Donna Pinsoneault

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28 SOFT SKILLS

14 5 keys to selecting the right technology for your business These five tips can help your company select the best cost-efficient technology.

Assembly Bill 553 increases the threshold for sales tax exemptions Gain insight into the newly signed bill, which rescues nonprofits by relaxing the sales tax exemptions for occasional sales by nonprofit organizations.

By Cynthia M. Hodnett

To make sure your accounting applications are the proper fit to help run your business, you should be able to describe it with three key adjectives: agile, integrated and automated.

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6 capabilities of transformational leaders Today’s most effective business leaders create new ways to meet their company’s challenges and to drive cost reduction without destroying value.

By Samantha White

30 TECHNOLOGY

Rockin’ it old school: Face-to-face networking has a magic online forums can’t match

Departments 3 Outlook | chair’s letter 5

Membership Matters | member benefits

13 In Touch | president & CEO’s message 22 Kudos | members in the news 23 Memorials | departed members

Learn how to create harmony between networking online and in person.

By Kristy Short, Ed.D.

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Odds & Ends AICPA offers next version of CPA Exam in April 2017

2013 Apex Award for Publication Excellence 2016–2017 WICPA OFFICERS/BOARD MEMBERS Chair Steven G. Handrick, CPA, CGMA Chair-elect William L. Komisar, CPA, J.D. Past-chair Jean M. Hansen, CPA, MBA, CGMA Secretary-treasurer Katherine L. Hauser, CPA, CGMA Directors Michael D. Akers, CPA, CBM, CFE, CGMA, CIA, CMA, Ph.D. Lucien Beaudry, CPA, J.D. Ryan Hanson, CPA, CGMA Debra L. Lenz, CPA, CGMA, CIA, CRMA Terri M. Lillesand, CPA Matthew A. Los, CPA Scott Miller, CPA, ABV, PFS, CVA Matthew J. Schaefer, CPA, CGMA Wendi M. Unger, CPA AICPA Council Neil R. Keller, CPA, ABV, CVA Nicholas S. Lascari, CPA, CEA, CGMA 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 Copy Editor Joan Bahr Design & Layout Brett Stallman

The American Institute of Certified Public Accountants (AICPA) presented final details on the next version of the Uniform CPA Examination that will debut on April 1, 2017 (http://tinyurl.com/nextcpaexam). The new CPA Exam is based on a practice analysis, an extensive research project overseen by the AICPA’s Board of Examiners, which includes input from key stakeholders across the accounting profession. The result maintains the strong commitment of the profession to protect the public interest. The next exam remains current, relevant, reliable and legally defensible. The exam meets the needs of boards of accountancy by providing reasonable assurance that individuals who pass the exam have the technical knowledge and skills necessary for CPA licensure.

Verification service now available for CPA licensure The National Association of State Boards of Accountancy (NASBA) has a new service: CPA Experience Verification (http://tinyurl.com/nasbafaqs). This service was created in response to the accounting profession’s increasing need for a more coherent and standardized experience validation and verification process for international and domestic CPA licensure applicants.

Through this efficient experience verification process, applicants seeking licensure as certified public accountants (CPAs) in the United States will be paired with a NASBA client manager to guide them through the application process, followed by verification of work experience by the DataFlow Group — a global provider of specialized Primary Source Verification (PSV) solutions — and an interview with a licensed CPA to further validate the applicant’s requisite experience and determine if the applicant is qualified for licensure. NASBA’s Experience Verification service is available in Wisconsin, Illinois, Kentucky, Minnesota, Montana, Ohio, Washington, D.C., Oklahoma, Washington and Virginia (http://tinyurl.com/nasbaform).

Sikich LLP acquires BCG & Co. Sikich LLP acquired the assets of Brockman, Coats, Gedelian & Co., BCG Systems, Inc. and BCG Wealth Advisors, LLC (collectively referred to herein as “BCG & Co.”). With annual revenue of more than $18 million, BCG & Co. represents the largest-ever corporate acquisition for Sikich. Based in Akron, Ohio, BCG & Co. offers audit and assurance, tax, technology and wealth management services. BCG & Co. staff will continue to work out of the firm’s existing offices in Akron and Atlanta, Ga.

SVA named as one of largest Milwaukee-area accounting firms SVA was named to the Milwaukee Business Journal’s list of largest Milwaukee-area accounting firms. Ranked by total number of local CPAs in the Milwaukee area, SVA is No. 15 on this list with 28 CPAs on staff.

Wegner CPAs joins GGI Wegner CPAs joined with GGI, an alliance of accounting, law and consulting firm. Through GGI, Wegner CPAs has access to more than 25,000 experts who give advice on local regulations, compliance and go-to-market strategies. Currently, GGI has more than 500 members with nearly 700 offices in 120 countries. Through Wegner’s GGI membership, it has access to high quality firms in nearly every major financial and commercial center worldwide.

Advertising Manager Ellen Engel Printing The Printery, An RR Donnelley Company 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 2016 On Balance.

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

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{ Outlook | chair’s letter } “As Jim Collins said in his book, ‘Good to Great,’ ‘… when used right, technology becomes an accelerator of momentum, not a creator of it.’

As an industry, we should be proud of using technology as an accelerator of momentum.”

Technology and CPAs: From longhand to the cloud

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elcome to this issue of On Balance, which highlights topics including purchasing the right software for your firm and technology trends and tips for accounting professionals.

Technology continues to transform our profession. As is true in many industries, technology used by CPAs in performing their daily functions is critical when it comes to efficiency, increased productivity and seamless integration. Innovations are occurring daily, which allow us to perform tasks faster and more intuitively.

When it comes to technology, we’ve come a long way from when I began my career. Let’s go down memory lane.

Our first mainframe computer was used to enter checks and deposits to generate general ledgers and financial statements for clients. Remember green bar paper off the dot matrix printers? Also, the computer was the size of a desk, and we had someone working on it 24 hours a day to get our ROI. Our file rooms had rows and rows of computer binders.

I remember doing tax returns by hand, then using a product called StayFed whereby we filled in forms and sent them off to a processor. A few days later, the tax return would show up at our door to be reviewed. Changes had to go back to the processor, but it promised faster turnaround time on the returns with changes.

Then, we advanced to first-generation desktop computers.

The desktop computers were shared by all tax preparers on a time schedule, switching out 5.25-inch floppy disks, depending on which part of the tax return we were working on. Hard drives were too expensive.

If staff wanted computers at their desks versus sharing the ones in the office, we each had to purchase our computer from the firm with an interest-free loan. Depreciation schedules were done manually in longhand with 16-column worksheets

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taped to multiple 16-column worksheets to handle all the years of depreciation of the assets. We used manually-prepared working trial balances. Financial statements were typed from scratch every year. Finally, along came correction tape within the typewriter ribbon cartridge. What a blessing!

We have come so far with technology, including private networks, computing in the cloud, mobile access, working from home, international access, going digital and cybersecurity. With all the advances, however, how do you know what’s right for you? This issue of On Balance will provide you some guidance.

As Jim Collins said in his book, “Good to Great,” “… when used right, technology becomes an accelerator of momentum, not a creator of it.” As an industry, we should be proud of using technology as an accelerator of momentum.

Steven G. Handrick, CPA, CGMA is partner of Hawkins Ash CPAs in Green Bay. Onat Balance September Contact him 920-337-4541 or | October 2016 shandrick@hawkinsashcpas.com.

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Visit wicpa.org/marketplace for discounted pricing, codes and links to take advantage of the buying power WICPA members have.

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{ Membership Matters | Becker Professional Education } “Whether you take the CPA Exam before the 2017 changes or after, Becker Professional Education will guide you every step of the way.”

Prepare for CPA Exam changes with Becker

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or more than 50 years, Becker Professional Education has helped nearly half a million accounting, project management and health care professionals. In fact, it’s likely many of our members utilized Becker’s Review Course as they prepared for the Uniform CPA Examination.

A rich history Becker’s roots are deeply entrenched in the accounting profession. The company’s founder, Newt Becker, began his career as a young Price Waterhouse associate, where he developed a course to help eight of his Cleveland office colleagues pass the Uniform CPA Exam back in 1957.

Disappointed with test prep materials he researched as a graduate student in accounting, Becker developed his own program that focused on reviewing materials, and taught testtaking strategies that allowed students to be successful. With the support of firm partners, Becker fine-tuned his course, until branching out on his own in 1960. And so, Becker Professional Education was born.

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Exam changes ahead In response to a changing business climate and evolving accounting profession, the American Institute of Certified Public Accountants’ research and development of the next version of the CPA Exam is complete and set to launch on April 1, 2017. The exam will now require more task-based simulations, and demonstrated higher-order cognitive skills such as critical thinking, problem solving and analytical ability.

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the CPA Exam requires, rather than offering rote memorization learning. With online and live study formats, students can select the platform that works best for them.

In addition to these changes, the CPA Exam will be longer, increasing from 14 to 16 hours to complete. The AICPA believes this shift in what the exam will test and the method of testing will keep the next version of the exam aligned with the knowledge and skills required for initial licensure.

Committed partner of the WICPA Becker has a long relationship with the WICPA. As an affinity partner, Becker has sponsored the WICPA New CPA Dinner for years. You may have met Becker representatives at a WICPA conference, or seen the firm’s ad in CPA2b. For your colleagues or interns preparing for the exam, consider Becker’s discount of $300 on the full four-part in-class, online or CD-ROM CPA review course. Live courses starting soon in Milwaukee, Madison and Whitewater.

Be Becker prepared Whether you take the CPA Exam before the 2017 changes or after, Becker Professional Education will guide you every step of the way. Becker focuses content to maximize study time and effort, preparing students for the comprehension that

For more information, contact local representative Adriana Coopman at acoopman@becker.com, and learn more about Becker Professional Education at www.beckercpa.com. Check out your many member benefit offerings in the WICPA’s Member Benefits Marketplace at wicpa.org/marketplace.

Ellen Engel is advertising manager at the WICPA. Contact her at 262-785-0445 On Balance September | October 2016 ext. 4513 or ellen@wicpa.org.

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Photography by John Sibilski

Amy M. Manthey, CPA, CITP, CISA first learned accounting skills as a child while working at her family’s roller skating rink.

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Amy M. Manthey, CPA, CITP, CISA combines expertise in audit with a passion for technology

By Cynthia M. Hodnett

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hat does a roller skating rink have to do with accounting?

If you’re Amy M. Manthey, CPA, CITP, CISA, it was the place where you spent time as an adolescent learning accountingrelated skills such as cash collections and how to prepare deposits.

Today, Manthey specializes in information technology (IT) risk assessments, auditing and consulting services as a senior manager in the Professional Practice Group (PPG) at Baker Tilly Virchow Krause, LLP in Madison. She also specializes in financial audits of municipalities and utilities, compliance audits, and reviewing, analyzing and identifying areas for improvement in an organization's internal control environment, focusing on controls over information technology.

New technologies, such as cloud computing, mobile devices and advances in accounting and auditing software, continue to transform the accounting profession. Accounting professionals like Manthey with technology expertise help their peers and the firm navigate these and other new technological terrains.

Her experience in both financial audit and specialized IT projects generates unique insight into the IT controls that are critical to support the assurance applications and tools used for the review and preparation of many different types of engagements.

“IT is always changing, and this presents new opportunities for a firm,” she said. “It also brings challenges. It’s always interesting to see how these things can help us do what we do better than how we did them before.”

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Discovering a passion for audit, technology Bookkeeping wasn’t the only skill Manthey learned while working at her family’s business. She also taught herself how to program her family’s home computer.

“I remember the computer came with a book on how to program it to do certain things like flash colors and play a tune,” she said. “I would sit for hours just learning how it all worked together to do all of these interesting things.”

In high school, Manthey took accounting courses, which piqued her interest in pursuing an accounting career. By 1998, she earned a Bachelor of Science in Accounting from the University of Wisconsin-La Crosse. While in college, she had an internship in auditing at a CPA firm and another internship in an accounting department at a manufacturing company.

“I learned pretty early on that tax wasn’t for me,” she said. “Those internships were great because they helped me narrow it down to auditing, which I enjoyed. Plus, I thought working with different clients was interesting.”

Manthey began at Baker Tilly in 1998 as a staff auditor.

However, a series of opportunities created a career path that began at the intersection of audit and technology.

“When I first started, I knew about the opportunity to become a partner in the audit practice,” she said. “But there wasn’t a career that combined technology and accounting. Everyone knew those were both passions of mine, so they helped me pursue it. I had colleagues who would ask me about programs, like Excel, because they knew I knew it. Then, more and more opportunities to pursue both kept coming up, and that created a unique career for me that didn’t exist before.”

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'Pursue every opportunity’ In addition to earning a certified public accounting designation in 2001, Manthey earned her certified information technology professional designation in 2009 and certified information system auditor designation in 2011.

Because of her expertise in technology, Manthey was selected to join the firm’s Professional Practice Group (PPG). In part, the group is responsible for developing, implementing and maintaining the firm’s audit software and templates, said James A. Smolinski, CPA, partner of the firm’s Assurance PPG. “As auditing evolves toward systems and internal control focused audits, the dual specialties of technology and audit are necessary to develop and implement effective and efficient processes incorporating or driven by technology,” Smolinski said.

“Amy was able to meld something she was passionate about (technology) and a skillset (audit) and run with it,” he said. “This has enabled her to have an incredibly successful career at Baker Tilly and make herself invaluable to the organization. I think this is a great example for those trying to find the right direction with their career on how to meld something you love with what you do on a daily basis.”

Manthey was also invited to share her knowledge about auditing software at various conferences and seminars, which she continues to do today. Speaking at conferences is another tool she has in her professional arsenal.

“Communication, both verbal and written, are important,” she said. “Being able to explain what the technology needs are

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and what needs to be done in a clear and concise way is important.

Plus, I’ve learned patience, because you don’t always work with people who know as much about the software. But it’s rewarding because you’ve helped them.”

Manthey encourages accounting professionals who want to combine their career skills with their love for technology to seek out and create their own career opportunities.

“Find what you like about accounting, and apply it to technology,” she said. “Learn as much as you can. Also, let leadership at your firm know what your interests are, and pursue every opportunity that’s available.”

Cynthia M. Hodnett is editor of On Balance magazine. Contact her at 262-785-0445 ext. 4516 or cynthia@wicpa.org.

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Technology and CPAs How will technology impact the future of accounting?

Cloud computing and mobile devices, such as smartphones and tablets, will make the largest impact on the accounting profession in the near future. Firms must provide their data in a simplistic and secure format that can fit on a mobile device.

What software should every accounting professional know?

Microsoft Office and Excel are important. It’s important to understand how functions in Excel work beyond just sums. Learning the advance features can help understand and analyze all areas of business. Then, there’s an increasing variety of data mining software that will help firms and businesses better understand the business and correlations across industry lines.

Regulations and trends New and updated regulations continue to be proposed and approved. Technology auditors need to stay apprised of the upcoming changes and how they may impact their clients and their audit process.

— Told to the WICPA by Amy M. Manthey, CPA, CITP, CISA

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3 adjectives that should describe your accounting technology 10

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he evolution of technology is following that of many professions: specialization. There are thousands of software options with functionality designed to fit your specific business unit, industry or enterprise. Finding the correct fit can make a big impact on the success of your business. In competitive industries, the ability to spot trends and adapt quickly provides an advantage over the competition.

to your suppliers and customers. Your accounting or enterprise resource planning software should be a major player in communication efforts throughout your business, large or small, because the information it can provide is critical to the success of each business unit.

Companies should be able to scale their systems quickly, and make sure that it provides the right information at the right time.

To ensure your accounting applications are the proper fit to help run your business, you should be able to describe your technology with three key adjectives: agile, integrated and automated.

Before you jump into just scrapping what you have, make sure you’ve done what you can to properly leverage your current system. Are there features that you’re not using or manual processes that you’re performing because that’s how they’ve always been done? Look for process improvements first, creativity before capital, or get an objective look from an outsider to help spot the opportunities that the business team is too close to see.

Third party apps can also be leveraged to make inventory, project management, CRM, and accounting solutions talk together more efficiently.

By Scott E. Hess, CPA

Agile Software agility is about being scalable through ease and speed of managing deployment and cost. With some software packages, implementation can be quite a bear and you may end up paying for functionality you don’t use. Cloud-based software and software as a service are two options that provide agility for businesses because different tiers of functionality are typically offered.

Their flexibility leaves you room to easily scale up down the road without investing significant dollars today or locking yourself into a cumbersome system with high switching costs that will be difficult to walk away from or undo later. When you’re ready to add the next rung of functionality, allocate the additional budget for it, and turn it on (plus, it works the same in reverse).

Integrated

Automated With the speed of business today, we can’t babysit our systems.

We need intuitive software that facilitates automating processes that feed into up-to-the-minute reporting. If you’re doing manual or duplicate entry, it’s time for an evaluation of your accounting technology. Not only does the data entry take time, it also leaves you more susceptible to error and delay.

With anything, as you move toward the next generation of software and systems for your business, planning is the key.

• Get all of the stakeholders involved in the process early, and define what’s important for each individual.

• Don’t let just one business unit like production, sales or human resources drive the decision.

• Once your needs are defined, take an objective look at the features and benefits that are mission critical versus those that are nice to have, and assess how they fit into the overall budget.

Technology helps us communicate better across business functions and put more context around the information we’re examining. How’s your inventory moving, which customers are buying, when are they buying, what are the trends or missed opportunities, and how do we adjust? These are all questions that the sales, operations, and finance teams are trying to answer on a daily basis. If your sales, inventory, customer relationship management (CRM) and/or accounting systems don’t talk to one another, the opportunity may be lost.

Finally, plan for agility, integration, and automation in everything you do. Design your system with the ability to flex into where your business is headed tomorrow and not just where it is today, and you’ll set up your business with the infrastructure it needs for success.

Without clear data, the sales, operations, and finance functions may move in different directions, which can put undo strain on everything, from your working capital and banking relationship

Scott E. Hess, CPA is a principal at CliftonLarsonAllen LLP in Racine.

Contact him at 262-637-9351 or Scott.Hess@cliftoncpa.com.

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• Ask yourself if the investment make sense.

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WICPA

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NOMINATE SOMEONE EXTRAORDINARY FOR A WICPA EXCELLENCE AWARD Take a moment to think about those who have made an impact on you or the accounting profession such as: • An exceptional co-worker • A mentor • Someone who gives back countless hours to the community or nonprofit group • Someone who has made significant contributions to the profession Show your appreciation by submitting your nomination at wicpa.org/awards now through Nov. 11, 2016.

Descriptions for the 10 award categories can be found at wicpa.org/awards. Recipients will be announced in December and will be honored at the Member Recognition Banquet & Annual Business Meeting on May 4, 2017 at the Harley-Davidson Museum® in Milwaukee.

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{ In Touch | president & CEO’s message } “While technological developments increase the potential for some workers to be displaced by thinking machines, technology developments are evolving the CPA profession into increasingly higher value skills and services.”

CPAs leverage technology while minimizing risk

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t seems that for every technological development, there’s a headline describing a new technology security issue. Managed skillfully, the financial benefits from technology developments far exceed the costs resulting from failure to effectively control related information technology (IT) risks. Balancing and managing technological developments and related risks requires specialized skills and training, which CPAs routinely apply to successfully navigate rapidly evolving IT terrain.

Business decision makers have long recognized and relied upon CPAs’ skills in reviewing and reporting past transactions to inform decisions made by executives, investors, lenders and taxpayers. Increasingly, CPAs’ abilities to anticipate, recognize, communicate and exploit business opportunities are being recognized as among CPAs’ most valuable contributions to organizations. The same analytical CPA skills that have resulted in reliable reports of past financial transactions for more than a century are critical for CPAs who are now expected to guide and implement forward-looking business decisions based on strategic insight.

CPAs are using their skills to help organizations gather, sort, and analyze enormous amounts of data (“big data”) that are now becoming accessible for the purpose of identifying business trends and opportunities. While CPAs have historically performed analytical reviews of data during audits to identify potential transactional reporting errors, these analytical skills are now being applied by CPAs using complex algorithms to identify opportunities for improving and accelerating business decisions, processes and efficiency.

CPAs’ skills in the area of internal controls and business processes are also being deployed in new ways to identify and mitigate risks with respect to the digital flow of information within and between various technology platforms. The potential evolution of audit processes to continuously review

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100 percent of business transactions could enable CPAs to identify and eliminate risks sooner than waiting until an annual audit process has commenced. Artificial intelligence is now being applied to reduce risk by more efficiently focusing audit procedures, e.g., computers “reading” legal contracts to identify words and phrases that increase audit scrutiny.

While technological developments increase the potential for some workers to be displaced by thinking machines, technology developments are evolving the CPA profession into increasingly higher value skills and services. The need for digital information to be reliable, for processes and systems to minimize risk of corruption and data breach, and the high value of decisions based on insightful data analysis are certain to keep CPAs moving higher up the value chain in the business community.

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

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5 keys to selecting the right technology for your business 14

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ccounting firms have an overwhelming amount of technology options available to help them manage finances and customer relationships and store and access important files and data. Plus, firms vary in size and need. As a

By Scott A. Wegner result, it can be difficult to decide what technology to implement and where to start. The following are five tips that accounting firms (and others) can use to prioritize the most important considerations and select technology that will enhance efficiency and meet their specific needs.

1. Determine your business requirements When a company begins to consider new technology, the first step is to look at its needs — taking into account everything from the industries it works in to client preferences. Accounting firms may want to upgrade their time and billing and document management applications or their audit programs, tax software and research tools. Once a company establishes its core needs, it can then begin to compare different options and packages.

As part of this initial business assessment, a firm will also need to determine its data requirements. How much data do we have? What kind of data do we have? What do we need to do with our data? Companies in industries such as oil and gas have massive data sets that require large data warehouses and advanced business intelligence functionality. Accounting firms, on the other hand, may not have the same quantities of data but require the highest level of security to protect the highly sensitive information clients share via online portals or other means.

2. Prioritize compliance and security Data security is important for every company in this era of all-too-frequent cyberattacks. Further, nearly every industry has mandatory compliance requirements, e.g., Health Insurance Portability And Assurance, Payment Card Industry Data Security Standard, Sarbanes-Oxley Act or reporting standards, which have

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a major impact on a company’s technology choices, especially its security posture. Since accounting firms hold highly sensitive data, security should be a top priority to ensure they maintain client trust and confidence.

Some strategies firms can consider to better protect data and information could be to implement two-factor authentication for remote access and network segmentation to compartmentalize certain types of highly sensitive data. Firewalls and content filtering can also help ward off attacks. Additionally, companies should consider completing an information technology (IT) risk assessment, followed by monthly vulnerability scanning to keep security defenses updated and prepared for the latest threats.

Annual or biannual penetration testing, in which trained security professionals attempt to breach a company’s IT security defenses, can help the company pinpoint areas of exposure and then work to mitigate risks.

3. Make sure the technology fits the workforce The geographic disposition of an organization’s workforce will also dictate technology needs. If most employees work out of a centralized office, the company can probably afford to operate with a pared down on-premises technology footing. However, a

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company with a workforce spread across multiple locations will require wide-area networking technology, such as multiprotocol label switching or virtual private network tunnels over the internet to connect offices. Also, a company with a distributed or mobile workforce likely will need remote application and desktop technology and secure connectivity to enable employees to work remotely.

In addition, cloud technology can enable companies to deliver applications to staff in the office, at home or on the road. Many commonly used email and productivity applications have become commoditized public cloud offerings that offer the benefit of on-demand consumption without large capital investments or ongoing IT administration costs. The cloud can provide features that would be impossible to duplicate on premises with even substantial budgets. Plus, cloud applications are always up to date. It’s crucial that when a company decides on where to spend its technology dollars, it ensures its investments align with the business structure and the productivity needs of its workforce.

4. Have a plan for the future Most companies expect to grow in the future. However, to do this, the company’s technology needs to grow along with it. By adopting technology that is scalable to growth, a company can avoid having to overhaul its IT footing with every expansion.

One option to ensure technology facilitates company growth is to prioritize software applications with subscription models that allow companies to pay as they go. A subscription setup will allow a company to quickly and easily expand the licensing and delivery of technology to new users as it expands with new hiring or acquisitions. At the same time, should the company

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endure a setback and lose employees, it will not want to pay for underutilized technology. Therefore, it’s important to look for technology models that can accommodate both up- and downsizing.

5. Take stock of your resources It’s crucial to account for the support required to manage and maintain technology. Companies with a large, experienced IT team likely will be able to manage technology deployments themselves. Other firms with only a single network administrator or a small team may want to consider working with a partner, such as a managed service provider.

Further, accounting firms need to ensure new technology fits seamlessly into their current operations. For example, a company shouldn’t implement a Unix-based software application if the rest of the organization uses Microsoft products. And companies should adopt technology that can be easily supported. Therefore, steer clear of applications on niche operating systems.

Implementing new technology can be an involved and sometimes complex endeavor, but also a worthwhile one.

Advanced technology can help CPAs be more productive, collaborative and improve client service. When backed by a thorough assessment of company needs and resources, technology investments can position firms for long-term success.

Scott A. Wegner is a partner at Sikich LLP in Naperville, Ill. Contact him at 630-566-8417 or Scott.Wegner@sikich.com.

wicpa.org

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Photography by Janet McMillan MFHS business teacher Sara Burling (front row, center) and her students get a glimpse at accounting careers during a visit at Chortek LLP in Waukesha.

Rebekah A. Shull (front row, right) helped Burling coordinate the visit.

BUILDING A FOUNDATION FOR SUCCESS

WICPA Educational Foundation grant gives MFHS students a glimpse at accounting careers

By Donna Pinsoneault

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wicpa.org

Sara Burling (center), clockwise: Karly Volz, Kristina Barczak, Eric Neuman, CPA, Megan Welsh, Josh McMahon, Dana Franzowiak discuss the audit presentation.

S

even Menomonee Falls High School juniors enjoyed a potentially career-changing experience on their final day of classes in June.

It all began when Sara Burling, a business teacher at Menomonee Falls High School (MFHS), talked with Rebekah A. Shull, a lead accounting associate at Chortek LLP and a WICPA member.

Shull is a MFHS grad and Burling’s former student. Shull is a strong advocate of exposing students to real-world accounting experiences in high school.

Over the next few weeks, Burling, Shull and Megan Welsh, also of Chortek and a WICPA member, developed a mock audit project. Students would be challenged to work through the audit, and to present their findings to professionals at Chortek’s Waukesha office.

“We wanted students to see how what they were learning in the classroom applies to real life,” Burling said. “Presenting findings to accounting professionals gave them a bonus — an opportunity to network, to learn firsthand about all the different areas of accounting.”

‘We saw this as an awesome opportunity’ In lieu of a traditional final exam, the students only had a few days to complete the audit. Solution in hand, they arrived at Chortek early, dressed professionally and prepared to present their project.

“We saw this as an awesome opportunity,” said student Tanner Trombley. “In class, we were always looking at what would be correct. This project required us to look at things from the other side.”

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Students Haley Richards and Andrew DeLuka agreed with Trombley.

“In class, we don’t usually get asked to solve a mystery,” Richards said. “We didn’t get to see the audit side of accounting.”

“Most of the problems we worked on in class turned out perfect,” DeLuka said. “This one wasn’t set up that way.”

Presentation day began with an in-depth tour of Chortek’s facilities and opportunities to hear tax, audit, mergers and acquisitions and information technology professionals describe their roles. Students’ questions ranged from how long it takes to complete an audit to how difficult it would be to work with companies to how teams communicate and work together within the accounting firm. After the tour, students divided into smaller groups to present and discuss their findings with the pros.

“This case seemed like a lot at first,” DeLuka said, while explaining that one of their first steps was breaking out the cost of goods sold.

Trombley explained how students checked the math as reported by the hypothetical client and identified things they wanted to discuss with the client.

“We practiced ‘trust but verify,’” he said.

Learning in the classroom and boardroom Richards rounded out her group’s presentation by explaining how they put together the report and prepared suggestions.

“Our advisors encouraged us to look for things that were unusual,” she said.

“Throughout the audit project, the students asked really challenging questions,” Shull said. “We encouraged them to

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keep looking, to keep asking, ‘What might we be missing?’”

Would they do it again?

“This was our first go-round with it,” Shull said. “At first, we worried that the case might have been too hard.

"Students thought that too, at first, but they encouraged project planners to make next year’s challenge even harder.”

“Once we figured out what to do, it was pretty easy,” Richards said.

“We were beyond thrilled to see the results of all the planning,” Burling said. “We’re 100 percent committed to doing it again.”

Students Kristina Barczak, Dana Franzowiak, Josh McMahon and Karly Volz made up the second group of presenters and also recommended repeating and extending the challenge.

Left: Students Andrew DeLuka, Tanner Trombley, Josh McMahon, Haley Richards, Karly Volz and Kristina Barczak prepare for their audit presentation.

“This exposed us to real world material,” Volz said. “We were able to combine what we learned with what really happens.”

“Once we got into it, it was great to get insights into a real-life job scenario,” McMahon said.

Barczak would like to see more students have a similar opportunity.

“I would for sure recommend it to others,” she said.

“It would be great if other accounting firms did this in their companies,” Franzowiak said. “That would give the whole profession a real chance to welcome more students.”

Giving back to the profession Each year, the WICPA Educational Foundation provides Accounting Career Awareness grants to fund this and other projects to benefit high school students interested in accounting careers.

This year, the foundation awarded $51,272 to 37 Wisconsin high school teachers for local projects that promote accounting as a career and involve interaction with Wisconsin CPAs. “When I was a student, I had no idea what it would be like to actually work in accounting,” said Christopher M. Cholka CPA, accounting staff with Cousins Submarines Inc. and a member of the Educational Foundation board of directors grants subcommittee.

“This grant gave students a view of what an actual working environment is like.”

Accounting firms also benefit, Shull said.

“Students not only had an opportunity to look into what auditing really means, they got to see how a firm like ours operates,” she said.

“We recruit locally, and they got to see that you don’t have to choose a Big Four firm to have a fulfilling accounting career.”

After the presentations, Chortek professionals described their own career paths, offered advice and encouraged students to take initiative and practice behaviors that would help them professionally.

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Left: Students Karly Volz, Kristina Barczak, Josh McMahon, Dana Franzowiak listen to a speaker.

“Public accounting can offer a huge amount of variety,” said Julie Schroeder CPA, principal at Chortek. “Doing internships will give you exposure to the day-to-day challenges. Then, you can find the size, structure and environment of firm that you are looking for.

There are fantastic opportunities out there for you.”

Over lunch, more Chortek associates talked with students.

“Our media center was packed.” Shull said. “We all could see that the students were extremely interested. They confirmed that it’s important for our profession to reach out sooner and help students gain these insights at a younger age.”

Donna Pinsoneault is a freelance writer in Brookfield. Contact her at dpinsoneault@gmail.com.

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NEW CPAs WELCOME TO THE PROFESSION! Fifty-one newly licensed CPAs celebrated the accomplishment of becoming a CPA at the 9th annual New CPA Welcome Dinner on June 9 at the Holiday Inn Pewaukee-Milwaukee West.

The event, with nearly 150 attendees, included a keynote speech by Kimberly Ellison-Taylor, CPA, CGMA, vice chair of the AICPA Board of Directors. After the dinner and program, guests enjoyed circus-themed entertainment including balloon creations, magic tricks, face painting, tattoos, cotton candy, popcorn and more!

SEE EVENT PHOTOS AT WICPA.ORG/FACEBOOK.

THANK YOU TO OUR SPONSORS ENTERTAINMENT SPONSOR

NETWORKING RECEPTION SPONSOR EVENT SPONSORS

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kudos Tanya Binning was hired as a firm-wide employee at Hawkins Ash CPAs in Medford.

Joann Noe Cross, Ph.D., CPA, CMA, CGFM, CGMA, professor and co-chair of the accounting department at the University of Wisconsin-Oshkosh, received the 2015 American Institute of Certified Public Accountants Outstanding Discussion Leader Award.

Kenesha A. Crafton, CPA was hired as a federal tax supervisor at RSM US LLP in Schaumburg, Ill. Brian T. Falk, CPA, a member of the nonprofit team at RitzHolman CPAs in Milwaukee, was promoted to supervisor.

Becky Giombi, a member of the nonprofit team at RitzHolman CPAs in Milwaukee, was promoted to senior accountant.

Nicholas J. Heckenkamp

Diana G. Luttmann, CPA, a member of the nonprofit team at RitzHolman CPAs in Milwaukee, was promoted to senior manager.

Michael A. Maass, CPA, CVA was hired as a senior manager in the tax and business services department at Wegner CPAs in Madison.

Katey Pasqualini, a member of the tax team at RitzHolman CPAs in Milwaukee, was promoted to senior accountant.

Sara Paull, CPA, a member of the nonprofit team at RitzHolman CPAs in Milwaukee, was promoted to senior accountant.

Lacey M. Puls of Smith & Gesteland in Middleton was named a recipient of the Elijah Watt Sells Award. She was incorrectly identified as a CPA in the July/August On Balance.

Kelly Goodmon, a member of the outsourcing team at RitzHolman CPAs in Milwaukee, was promoted to manager.

Paul A. Rothering, CPA was promoted to audit manager at Vrakas CPAs + Advisors in Brookfield.

Clenton Hall, CPA, a member of the tax team at RitzHolman CPAs in Milwaukee, was promoted to senior accountant.

Michelle L. Scholbe, CPA was promoted to senior manager at Dwayne Johnson & Associates, S.C. in Waukesha.

Paul A. Rothering, CPA

Carrie Small, CPA, MST was named partner in tax-financial services at Baker Tilly in Milwaukee, according to The Daily Reporter.

Nicholas J. Heckenkamp was promoted to senior accountant at Vrakas CPAs + Advisors in Brookfield.

Cameron D. Johnson, CPA was promoted to manager at Dwayne Johnson & Associates, S.C. in Waukesha.

Melinda L. Johnson

Melinda L. Johnson was promoted to senior accountant at Vrakas CPAs + Advisors in Brookfield.

Jackalyn M. Staus, CPA

Evan A. Thom, CPA, MBA was promoted to manager in the tax and business services department at Wegner CPAs in Baraboo.

Melissa L. Karis, CPA was promoted to audit manager at Vrakas CPAs + Advisors in Brookfield.

Melissa L. Karis, CPA

James T. Lindell, CPA, president of Thorsten Consulting Group, Inc. in Dousman, received the 2015 American Institute of Certified Public Accountants Outstanding Discussion Leader Award.

Want your

Jackalyn M. Staus, CPA was promoted to manager at Dwayne Johnson & Associates, S.C. in Waukesha.

Mary L. Wolter, CPA, CIA, CMA

Brian T. Wilson, CPA, a member of the tax team at RitzHolman CPAs in Milwaukee, was promoted to senior manager.

Mary L. Wolter, CPA, CIA, CMA was promoted to director – Gas Regulatory Planning & Policy at WEC Energy Group in Milwaukee.

promotion or award mentioned in Kudos?

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

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memorials Ervin J. Golembiewski, CPA

Edward J. Klune, CPA

Ervin J. Golembiewski, CPA died May 23, according to Milwaukee Journal Sentinel. He was 85. Golembiewski graduated from the University of Wisconsin-Madison in 1953.

He earned his certified public accounting license in 1959. He worked as a certified public accountant with the Milwaukee Office of the City Treasurer for 32 years before retiring in 1996.

The Plymouth resident joined the WICPA in 1960.

Edward J. Klune, CPA died June 11, according to Merrill Foto News. He was 86. Klune both earned his certified public accounting license and joined the WICPA in 1960.

The Merrill resident also owned and operated his own accounting practice for many years.

(1931–2016)

Arthur J. Keup, CPA (1927–2016)

Arthur J. Keup, CPA, died May 18, according to Milwaukee Journal Sentinel. He was 88. Keup, a Marquette University graduate, earned his certified public accounting license in 1955. He also served in the military during World War II. He began his accounting career as an auditor at what is now KPMG, followed by a position as treasurer at Alloy Products Corporation in Waukesha. He retired from Alloy in 1991. The Brookfield resident joined the WICPA in 1955.

(1930–2016)

Lawrence T. “Larry” Lopina, CPA (1930–2016)

Lawrence T. “Larry” Lopina, CPA died July 12, according to the Milwaukee Journal Sentinel. He was 85. Lopina graduated from the University of Notre Dame with a Bachelor of Philosophy in 1952, a Master of Business Administration from DePaul University in 1953 and a Master of Business Administration from the University of Chicago in 1963.

He served in the United States Army from 1953–1955. His accounting career included positons at companies including Haskins & Sells, Certified Public Accountants in Chicago, Applied Power, Inc. in Milwaukee and Broan in Hartford.

The Wauwatosa resident both earned his certified public accounting license and joined the WICPA in 1965.

Cecil B. “Skip” Sanders, CPA (1929–2016)

Cecil B. “Skip” Sanders, CPA died May 26, according to Milwaukee Journal Sentinel. He was 87. Sanders graduated from both the University of Louisville and the Harvard School of Business. He earned his certified public accounting license in 1967. He was a certified public accountant for many years with Arthur Young & Co. and later started his own firm specializing in auditing nonprofit organizations. The Elm Grove resident both earned his certified public accountant license and joined the WICPA in 1967.

Robert G. Urban, CPA (1928–2016)

Robert G. Urban, CPA died on May 18, according to Milwaukee Journal Sentinel. He was 87. Urban earned his certified public accounting license in 1956. The Wauwatosa resident joined the WICPA in 1958.

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23

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Join the WICPA Board of Directors!

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

Some of the opportunities include: • Staying up-to-date on professional issues

• Providing strategic governance in accordance with the WICPA strategic plan, mission and vision

• Attending Board of Directors meetings and membership events

To apply, visit wicpa.org/BoardApplication through Nov. 15, 2016.

All applicants must be a WICPA Fellow member in good standing. A Fellow member is defined as a person who has obtained a valid certificate as a CPA from the Accounting Examining Board of the State of Wisconsin, or from a similar legally constituted authority in any other state, possession or territory of the United States or the District of Columbia.

Questions?

Contact jessica@wicpa.org.

Financial statements now available online The Finance Committee of the WICPA Board has reviewed and approved the WICPA audited financial statements for the fiscal year ended April 30, 2016. The WICPA Educational Foundation Board has reviewed and approved the audited WICPA Educational Foundation financial statements for the fiscal year ended April 30, 2016.

The complete audited financial statements are available for all members to view at wicpa.org/financialstatements. Your username and password is required to access the statements online.

Members may also request a printed copy of the audited financial statements by contacting WICPA Chief Financial & Operating Officer, Tammy Hofstede, at 262-785-0445 or W233N2080 Ridgeview Parkway, Suite 201, Waukesha, WI 53188.

Sincerely, Steven G. Handrick, CPA, CGMA, WICPA Chair

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Dennis F. Tomorsky, CPA, J.D., CGMA, WICPA President & CEO

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{ Tax | Assembly Bill 553 }

Assembly Bill 553 increases the threshold for sales tax exemptions occasional sales by nonprofit organizations. This means that fewer nonprofits will owe sales tax when they sell goods or services throughout the state. The following is a summary of the changes: • Under current law, if a nonprofit sells an aggregate of more than $25,000 and those sales occur more than 20 days during the year, it’s liable for sales tax. The new bill increases these measurements to 75 days and $50,000 in sales.

• Also under current law, if a nonprofit sells admission to an event where the entertainment cost is more than $500, the admissions are taxable. The new law increases the eligible entertainment expense to $10,000.

A

s the fall breeze brings tourists into Wisconsin, various nonprofit enterprises, such as churches and chambers of commerce, are holding their events and enjoying the great outdoors.

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

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While sales tax couldn’t be further from most people’s minds, Wisconsin’s taxation of occasional sales by these entities can be an expensive and unforeseen misfortune. On April 15, Gov. Scott Walker signed into law Assembly Bill 553, which increases the threshold for sales tax exemptions for

September | October 2016

For example, a Wisconsin tax exempt entity that charged admission to attend a golf outing where a jazz band was playing during the reception would be subject to the tax for the admissions to the event if the band was paid $600. Under the new law, the admissions would no longer be subject to a sales tax.

As another example, a church arranged for volunteers to donate time to provide $35,000 of fundraising for 18 pie sales during the year. The church also sold T-shirts three times a year to its members’ affinity groups. It would have to pay sales tax on the amount more than $25,000 — in this case, $10,000. Under the new law, these sales would be exempt from the sales tax.

Wisconsin legislators addressed an increasingly burdensome requirement for many tax exempt entities.

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{ Tax | Assembly Bill 553 }

“On April 15, Gov. Scott Walker signed into law Assembly Bill 553, which increases the threshold for sales tax exemptions for occasional sales by nonprofit organizations. This means that fewer nonprofits will owe sales tax when they sell goods or services across Wisconsin.”

Under the old law, the definition of “entertainment” was being expanded by the Wisconsin Department of Revenue to include musicians, artists and the presence of doughnuts and coffee at an event.

This created a trap for nonprofits seeking to carry out their taxexempt mission in that they faced an unforeseen expense, resulting in tax and penalties and interest being assessed on these “sales.”

Under the new law, nonprofit Wisconsin entities can reduce the cost of providing these services to residents and guests, plus enjoy

wbb-law.com

lower compliance and administrative costs associated with an outdated statute. The increased limits apply to sales beginning Jan. 1, 2017, so affected organizations should plan accordingly for any events in 2016.

Robert A. Mathers, J.D., CPA, ABV, PFS is a shareholder at von Briesen & Roper, s.c. in Oshkosh. Contact him at 920-232-4855 or rmathers@vonbriesen.com.

THE LAW FIRM OF WEISS BERZOWSKI LLP has been working with businesses and individuals to resolve tax issues for nearly 60 years. The Tax Team has unique skills and knowledge in accounting (CPAs), business and real estate law to handle diverse tax situations. They have earned the reputation for successfully resolving federal and state tax disputes from audit, to appeals, through the Tax Court and into collections.

To learn more about how the Tax Team of Weiss Berzowski can assist you in solving your tax problems, contact Rob Teuber at 414.270.2538 or rbt@wbb-law.com.

B U S I N E S S • E M P LOY M E N T • E STAT E P L A N N I N G • L I T I G AT I O N • R E A L E STAT E • TA X

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{ Soft Skills | Leadership }

6 capabilities of transformational leaders

By Samantha White

I

ncreasingly complex demands are being placed on leaders as social change, shifts in the global economy, resource scarcity, and technological advances disrupt long-standing business models. Leaders are being called upon to create new ways of working to meet these challenges and to drive cost reduction without destroying value.

o The ability to act on the big and small picture. Leaders must be able to provide vision and direction, as well as get involved in detailed action where necessary.

Yet less than 10 percent of senior management have the capabilities and experience required to bring about this type of transformational change, according to a study of 6,000 leaders conducted by Harthill Consulting in collaboration with PwC.

o Creative use of power. Whether it be formal, informal, institutional, or personal power, using it wisely builds long-term commitment and trust among peers, employees, and other stakeholders.

It’s not just tenure that counts, and the skillset needed for successful transformation is different from that needed to excel in the day-today running of a company or to thrive in a crisis.

The research describes 52 percent of current senior management as “achievers.” This type of leader is action- and goal-oriented and well-suited to managerial roles. He or she is able to juggle managerial duties and market demands, as well as achieve strategic goals efficiently, through his or her team.

However, solving direct challenges to business-as-usual calls for a different type of leader with different attributes. The “strategists” who are capable of leading successful transformation in a complex business environment possess a multifaceted way of looking at the world, an ability to reflect on and learn from each experience, and the humility to inquire rather than advocate and engage instead of command.

Strategists can articulate a vision for the future of an organization while also ensuring it runs effectively in the present. They also create opportunities for others to thrive.

The 6 capabilities According to the researchers, strategists possess the following capabilities: o A fresh perspective. Being able to see a situation from a number of perspectives can generate new approaches and therefore promote innovation and problem-solving.

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o Passionate detachment. Leaders must balance passion for their mission and objectives with the detachment to weigh situations objectively and change course when required.

o Positive use of language. Strategist leaders use language with skill and awareness to inspire and influence, with the clear goal of creating positive outcomes. o Leading with vulnerability and courage. Effective leaders have the courage to make tough and potentially unpopular decisions.

Meanwhile, vulnerability, a characteristic less common amongst leaders, is crucial to enabling others to both take responsibility and give frank, honest feedback.

Such leaders are in short supply, and few have emerged over the past decade. Research conducted in 2005 classified 7 percent of all senior managers as strategists, and the figure for the 2015 survey was 8 percent.

The research also indicates that strategists are often to be found working in consultancy or advisory roles, and may be reluctant to work directly for an organization, particularly if it relies on hierarchical management structures. In this context, organizations need to do more to attract, retain, and develop the type of individuals capable of taking their business forward.

How to develop and retain transformational leaders Drawing on best practices observed in the study, researchers suggest organizations take the following steps to develop transformational capabilities: 1. Distribute responsibility. The first step to developing this type of capability is distributing responsibility downward and

wicpa.org

{ Soft Skills | Leadership } outward, enhancing the organization’s adaptability, resilience, and intelligence as a whole.

2. Be realistic about the quality of information. Be aware of and acknowledge the limitations of available data.

3. Build an empowering collective culture. Turn shared aims into behavioral norms across the organization.

Take a holistic view of employees Those organizations defined by researchers as strategists demonstrate their concern for their employees’ overall well-being with policies such as life coaching or on-site child care. Other approaches include:

4. Invest in professional development opportunities. To develop transformative leaders, life coaching, action learning, and reflective thinking should be prioritized.

o Build strategy collectively. Many strategist organizations have defined methods of working collectively on business strategy.

The theory is that anyone who shares responsibility for execution of the strategy should get a say in its formulation.

5. Recruit for transformation. Prioritizing the attributes of transformative leaders right from the recruitment and on-boarding processes helps create the conditions they need to thrive and ensures cultural fit.

o Tone from the top. For strategists to grow and develop at all levels of the organization, senior leaders must also embody these values.

6. Address conflict and failure openly. In successful transformations, there is a culture of experimentation in which failure is seen as a necessary part of the development process. Some companies in the study discuss unsuccessful projects, identifying what went wrong and lessons can be learned. Other organizations in the study have developed forums in which colleagues can discuss the personal aspects of any conflicts that arise.

o Prioritize reflection. All staff should set time aside for unstructured reflection on a regular basis.

YOU’VE GOT THE INTELLECT. NOW GET THE INTANGIBLES.

Samantha White is a CGMA Magazine senior editor. Contact her at swhite@aicpa.org. Copyright © 2011-2015 American Institute of CPAs. Copyright © 2011–2015 Chartered Institute of Management Accountants.

All rights reserved.

INTRODUCING THE CGMA PROGRAM DISCOVER A LIFELONG PROFESSIONAL LEARNING JOURNEY AT CGMA.org/Program ®

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

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{ Technology | Online forums }

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{ Technology | Online forums }

Face-to-face networking has a magic online forums can’t match

"I

By Kristy Short, Ed.D.

’m All A-Twitter;” “It’s a Tweet Life,” “Incurable Tweaker,” i.e., someone so addicted that they sneak tweets. By now, you’ve heard all the cool play on words surrounding this social media phenomena. It seems like everyone is writing about social media in general these days — offering advice on appropriate implementation or reporting on success stories. It’s there at every turn of the page.

Social media, applied purposefully, is a smart addition to any marketing communications program. Without question, the value of social media can’t be overstated. However, neither can the value of networking live and in person. What it comes down to is finding the right balance between the two.

Accounting continues to change, and among the many changes over the past few years is the growing popularity of social media within firms, including Twitter, Facebook, Flickr and YouTube. Acceptance is fabulous, as long as firms understand that accepting the new doesn’t mean throwing out the old.

The most successful firms are leveraging the power of social media while preserving traditional, effective elements of their communications model, like attending on-site social events.

Consider a firm’s clients: While clients love the convenience of online services, e.g., portals, they still expect periodic sit-downs with their trusted advisor. The same philosophy can be applied to firms. Building a social media following is smart marketing, but there’s as much value and necessity in mixing it up face-to-face.

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Putting the cool back in old school Compared to the uber-cool feeling of tweeting and blogging, on-ground networking is sometimes considered doing it “old school.” Nonetheless, on-site forums (or communities) offer a solid venue for exchanging information and knowledge between colleagues. Participants work collaboratively to identify resolutions to common issues and pain points within the profession, and all within a supportive and non-competitive environment. Many of these events also offer demonstrations on the latest and greatest technologies, roundtable discussions, and leadership and software training.

On-site, non-cumulus forums (just a little cloud humor) provide participants with a level of energy and in-depth discussion that’s difficult to replicate in a web-based environment. Brainstorming for solutions and defining best practices is a complex and dynamic process that’s best supported by dedicated in-person interaction. For most, coming up with the next great idea is difficult to do in isolation. Generally, it’s through a process of idea slinging and dedicated group discussions that viable solutions evolve.

What are community members talking about?

Community participants are talking about everything, from technology and staffing issues to paperless processes and automated workflow. And unlike social media, discussions are synchronous. As ideas evolve, members actively work and rework them, applying practical experience and theory. Immediate multiway feedback helps to sustain momentum and excitement, motivating participants to take ideas through to completion and devise action plans for implementation. In the end, everyone walks away with a host of inventive ideas. Community members are hitting all the hottest topics, and these are definitely conversations to get in on.

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{ Technology | Online forums }

“Social media, applied purposefully, is a smart addition to any marketing communications program. Without question, the value of social media can’t be overstated. However, neither can the value of networking live and in person. What it comes down to is finding the right balance between the two.”

For example: • Time is money, so firms are always searching for ways to boost efficiency. Integrated software solutions are key in supporting digital processes, moving firms toward zero data entry, and ultimately boosting ROI. Through hands-on demos, forum members are taken through each step of an integrated workflow and what it takes to implement.

• Who isn’t talking about paperless? Everyone knows the value props — elevated efficiency, reduced overhead, and the coveted “green effect.” For most firms, however, the biggest obstacle is not knowing where to start. Community members are sharing paperless success stories and the technologies and practices that got them there.

• Software as a Service (SaaS) is easy, affordable, and people like it. Many community members are using SaaS applications and sharing how cloud computing has helped them achieve true lifework balance, recruit and maintain qualified staff, and accelerate efficiency overall. SaaS is at the center of a new paradigm in the profession. It’s the topic to talk about. Participants can discuss the leading practice management applications and see them in action. Product demos illustrate how to centralize firm data in one convenient location and maintain real-time views of firm status via advanced digital dashboard technology. With so many firms moving to the “hub” model, there’s a wealth of information flowing between community participants.

• Doesn’t it always seems like the minute you learn one technology, a new one pops up on the radar? Firms are always

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On Balance

September | October 2016

one technology away from being outdated. On-site communities offer the skinny on the newest applications, enhancements, and other progressive technologies. If you’ve wondered how some firms always seem to stay a step ahead with technology, chances are they attend on-site events regularly.

Tweet and meet, and then be merry The marriage of social media channels with traditional on-site communities provides the balance firms require. Social media offers a forum for day-to-day communications and eliminates the boundaries of time and distance. Through these cyber portals, professionals can now reach beyond their local accounting neighborhood and access a world of knowledge.

On-site events support face-to-face connections that drive effusive dialogue and leverage the experience of the many who make up a diverse profession. One medium doesn’t outweigh the other in importance, but rather they rely on each other to create a sound networking foundation for today’s next-generation CPA firm.

So what’s the final 411? Keep writing on walls, blogging with a vengeance and chirping it up, while also building relationships via active on-site community participation. Combined, these efforts will continue to move firms toward the light, or rather, the lightbulb.

Kristy Short, Ed.D. is president of SAS Communications 360 (SAScommunications360.com) and chief marketing officer and partner in RootWorks Communications (RootWorks.com) in Bloomington, Ind. Contact her at kristy@rwc360.com.

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