The Washington CPA 2020 Fall

THE

WASHINGTON CPA

Volume 64, Number 2

FALL 2020

CPA Evolution: New CPA Licensure Model Internal Controls in a Remote World The Advanced Guide to Automation for Accountants

Reaching Toward the Future

THE WASHINGTON CPA FALL 2020

CONTENTS

On the Cover CPA Evolution: New CPA Licensure Model 14

www.wscpa.org • memberservices@wscpa.org Tel 425.644.4800 902 140th Ave NE Bellevue, WA 98005-3480

BOARD OF DIRECTORS Jared M. Theis Chair Thomas J. Sulewski Vice Chair Diane Pietrowski Treasurer Andrew Brajcich Secretary Amanda V. O’Rourke Immediate Past Chair Kimberly D. Scott President & CEO

Sara E. Bailey Joyce Lee

Aaron R. Dawson Bill Reed

Sarah Funk Leslie A. Sesser

Lowel J. Krueger Susan L. Thomson

Kris Lambright Bonnie Tse

CHAPTER BOARD CHAIRS

Laurel Cohen Bellingham Area Charles Meyerson Everett Area Darin Johnson Olympia Area Allison McClure Seattle/Bellevue Area Shayna DesJardin Spokane Area Jessica Packer Tacoma Area Anthony Adams Tri-Cities Area Connie Olson Tri-Cities Area Raquel Martinez Yakima Area

Jeanette Kebede Kaitlin Brake

Editor Art Direction

Internal Controls in a Remote World 20 The Advanced Guide to Automation for Accountants 23

Spotlights Together, We Can Make a Difference: A 12-Step 8 Plan to Address Racism and Unconscious Bias .CPA - A Restricted Domain Exclusively for the 18 CPA Profession State Tax Nexus: Frequently Awkward Questions 26 Your Next Staycation is Only a Drive Away 36

Departments Membership News 5

The Washington CPA is published by the Washington Society of Certified Public Accountants for its members. Views and opinions appearing in this publication are not necessarily endorsed by the Washington Society of CPAs. The products and services advertised in The Washington CPA have not been reviewed or endorsed by the Washington Society of Certified Public Accountants, its board of directors, or staff.

The Washington CPA (USPS 009754) is published four times annually by the Washington Society of Certified Public Accountants, 902 140th Avenue NE, Bellevue, WA 98005-3480. $12 of members’ annual dues goes toward a subscription to The Washington CPA.

Leadership Lens 7 Upcoming CPE 28 WSCPA Peak Firms 32 Classified Ads 34

Periodicals postage paid at Bellevue, Washington and additional mailing offices.

Cover Illustration: © iStock/Andrey Suslov

POSTMASTER: Send address changes to The Washington CPA, c/o WSCPA, 902 140th Avenue NE, Bellevue, WA 98005-3480.

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@WashingtonCPAs

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MEMBERSHIP NEWS

Call for Nominations: WSCPA Board of Directors The Board Governance Committee is now accepting nominations for the 2021-2022 Board of Directors. Do you know someone who has been involved with the WSCPA and whose leadership could contribute to the future of the organization? Nominate them to serve on the board!

To submit a nomination, contact Helen Doty, WSCPA Director of Governance & HR at hdoty@wscpa.org. Nominations are due October 31.

Do You Know Someone Who Deserves Recognition?

Lifetime Achievement Award Do you know a “rock star” CPA who over their career has held numerous leadership roles inside and outside their organization, locally, statewide, and/or nationally, dedicated to the profession?

Nominate them for the Lifetime Achievement Award!

Community Leadership Award Or, do you know a “rock star” CPA who has held numerous or longterm leadership roles in community organizations and whose efforts have expanded the public’s awareness of the value of the CPA profession? Nominate them for the Community Leadership Award!

Submit an award nomination at wscpa.org/awards Nominations accepted through December 31.

Coffee & Conversations Coffee & Conversations is our newest member benefit to connect students and new professionals to our community of leaders.

Coffee and Conversations will give students an easy way to conduct and access informational interviews, without the cold call!

Learn more in the Coffee and Conversations Resource Group on Connect, the WSCPA's private community, or email memberservices@wscpa.org.

Utilize your Passport Corporate Card to get great deals on all your at-home needs!

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Athletic Greens: 15% off online orders Boll & Branch: $50 off your online purchase of $250+ InMovement: 15% off treadmill desks & standing desks Showtime: Save 50% off on first 3 months after free trial Vitamix: 20% off plus free shipping on $100+

Visit wscpa.org/passport for more discounts.

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MEMBERSHIP NEWS

Take Advantage of Reduced Virtual CPE Prices The WSCPA is proud to announce that we are lowering our standard fees for select 8- and 16-hour webcasts! Our new, lower pricing means that you'll save up to 20% on the same quality CPE you rely on to keep your practice current.

View the full list of webcasts with lower prices in our catalog, and register for some fall CPE today!

Check out our Reduced Price Virtual Classes on page 28.

CPE AT A GLANCE

20

120

Minimum CPE hours per year

Total CPE hours per reporting period

Don't Forget! New 20-hour CPE Rule for 2020 On January 1, 2020, new rules regarding CPE came into effect.

One of the biggest changes is that individuals holding an active CPA license are now required to complete a minimum of 20 hours of CPE per year. This starts in 2020 and is not retroactive.

Active licensees still need to complete a total of 120 hours of CPE, including a Washington State Board of Accountancy approved ethics course, within their total reporting period, but should plan their CPE so they're earning at least 20 hours each year.

WSCPA Now Offers Ethics On Demand We are excited to announce the addition of WSCPA self-study ethics! Now you can take Mark Hugh's Washington State ethics course whenever you want. Find the new Washington Ethics and New Developments 2020 - ON DEMAND in the WSCPA online catalog.

Learn more at wscpa.org/ethics-on-demand.

Get the Most Bang For Your Buck with the Prix Fixe CPE Webinar Series The Prix Fixe CPE Series Bundle is a collection of one-hour webinars on a variety of topics held now through May 31, 2021.

Always on a Friday, always at noon, so grab your lunch and tune in for a quick and informative update.

Can't attend them all? Not interested in every one? No problem!

Even participating in just about half of the webinars will still mean you're getting more CPE than a regular eight-hour webinar for a lesser price!

Learn more at wscpa.org/prix-fixe-fall

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LEADERSHIP LENS

Moving Forward: One Step, Conversation, and Coffee at a Time Jared Theis As I sit here this evening, following the first presidential debate, my initial thought is that we have not progressed much in the last few months – the pandemic is still significantly impacting our lives and business, there continues to be social unrest, and we seem to have somehow become more divisive in politics. I also think about how much our state, our profession, our friends and families have been affected. And weirdly, I have not been in Seattle or on an airplane for more than six months (or really anywhere outside of Eastern Washington for that matter). I miss those trips, which prior to the pandemic I took weekly from Spokane for almost six years to connect with clients and friends. Let’s not forget another tradition that we cannot enjoy this year, WSU tailgating in Pullman!

Yet, with everything going on that concerns me, I somehow feel optimistic about our future. I have confidence that we will overcome the current challenges and implement changes that will have long-term positive impacts on all of us. It feels strange, but then I reflect on the many conversations I’ve had over the past several months with colleagues, friends, and family, some of which were on topics and issues that we’ve never discussed before as they were normally avoided.

Illustration: © iStock/ Anna Minkina

While there is still a tremendous amount of work to be done, the fact that we are having some of these conversations to better understand the issues, and each other, is certainly a step in the right direction. Technology has allowed us to stay connected or re-connect, including through virtual happy hours to unwind and for myself, even a game of virtual charades. I see a silver lining: the current environment has allowed me to spend more time with my wife and young kids, which has offered me a new perspective that I previously took for granted. Progress is being made if you look at the glass half full.

Like all of our members, colleagues, and friends, the WSCPA has seen its share of struggles these past several months as well.

However, the WSCPA staff has been putting forth tremendous effort to support the activities of the Society and our members.

I continue to be impressed by what they can accomplish. The foresight of the team and leadership over the past several years to invest in technology has paid dividends, and they continue to find creative solutions to provide value and assistance to our members: from adjusting the timing of membership renewal deadlines to allow financial flexibility, rapidly providing online education on current topics (CARES Act programming anyone?), hosting share forums for professionals and virtual career fairs for students, and even creating a new member benefit – Coffee & Conversations – to help connect students and new professionals to our community of leaders. All the while, they are continuing to focus on being fiscally responsible to position the Society, its staff, and members for long-term success. They certainly have seized the opportunity and maintain the perspective that the glass, or shall I say coffee cup, is half full.

We also continue to focus on strategic initiatives for improving diversity and inclusion within our profession. The board and leadership team have been actively discussing these issues with firms, businesses, organizations, and universities to better understand how we can use our powerful CPA network to support and create meaningful change for the profession in our beautiful state. More to come on that in the future, and please reach out if you want to be more engaged with us on it.

It may not always be easy to see, but we are taking steps and moving forward. We will not be able to fix all the issues, and new ones will arise, but with the right perspective, we can all do our part to create a better profession. So, grab a cup of coffee (virtual or in-person) with a friend, colleague, peer, mentor, or anyone for that matter, to listen and learn a bit more about each other – these relationships will continue to provide the help we need to move forward together.

Thank you for your support of the WSCPA.

Jared Theis, CPA, is an Accounting Advisory Director in the Seattle office of KPMG LLP and chair of the WSCPA Board of Directors. You can contact him at jtheis@kpmg.com.

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TOGETHER, WE CAN MAKE A DIFFERENCE: A 12-Step Plan to Address Racism and Unconscious Bias Kimberly Ellison-Taylor, CPA, CGMA

Tragic, sad, and unbelievable are just a few of the words to describe COVID-19. Those words apply as well to the most recent events involving Ahmaud Arbery, Breonna Taylor, Christian Cooper, and George Floyd. The events involving Black and African Americans have been hurtful, shocking, and polarizing.

Over the years, Black and African Americans were cautiously optimistic when the CEO said, “Inclusion is important.” However, if my mom was right and “love is as love does,” we needed more than words. We need specific plans with accountability with expected outcomes to address racism and unconscious bias.

But here is where the similarities stop. With the COVID-19 pandemic, there is targeted funding, expected outcomes, and accountability, as well as the best and the brightest minds working together on treatment plans and a vaccine.

With over 100,000 pandemic-related deaths in the United States (as of this writing) and more expected, COVID-19 requires a basic understanding of the threat, consistent safety precautions, individual accountability, and new thinking about how we work and interact.

The pain pouring out over the past days is a consequence of an agony that permeates every aspect of our lives — writing a check in the grocery store and being asked for ID when no else is, being looked over for promotions, and or even having others cross the street to avoid you. The statements issued by business leaders have been beautiful and well written.

But are they just words?

"Progress won’t be made overnight, but our resolve must be unwavering..."

We need similar resources and focus to address the consequences of systemic racism and unconscious bias. Instead, in the prepandemic environment, we noted more than a few cases of “changing direction” in diversity and inclusion with less funding, reduced head count, and less organization-wide emphasis. Further, in many instances, diversity and inclusion was managed far below the top leadership, and its approach has been mostly risk-management-based, with a focus on what “not to do” rather than how to achieve lasting change.

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In the Black and African American community, along with the guidance to “avoid the police,” “never leave the store without a receipt or bag, even for gum,” and “never walk with your hood up,” we have added another one: “Make sure you get it on video.”

The frequency of tragic events has accelerated to a level we can no longer ignore, a point where sleeping at home in bed, visiting friends, taking an afternoon jog, going into your own home, or visiting a park to bird-watch are not safe. What’s different now is the cumulative effect of horrific videos showing

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DIVERSITY & INCLUSION multiple scenarios. These scenarios refute the “these are isolated incidents” reasoning. This is also why it is disheartening to see the distractions from the message we are working hard to get across. And while the destruction of property and violence are unacceptable on every level, we must maintain our focus on inclusion and not be swayed from the progress we want and need.

What else is different? We have visible and public encouragement from our allies and champions. I am personally overwhelmed by the outpouring of support from our colleagues who always said, “Kimberly, I see you.” My photo gallery is a rich kaleidoscope of people from across the accounting profession. I have appreciated the interactions, the friendships, and the opportunity to give my colleagues a safe space to ask questions they wouldn’t be able to ask anyone else. I am now compelled to expand that safe space, to give a different view, and to help with progress.

Now that we are talking about gaps in opportunity, access, and equity in the Black and African American community, the rest of the world is hearing what we have long known — there are systemic challenges in education, employment, health care, nutrition, business capital, prison sentences, etc.

We must work together to overcome these systemic challenges.

Over the years, leaders and professionals across the accounting profession have come together to address economic, regulatory, pipeline, and advocacy challenges and initiatives. This gives me great confidence that we can make a difference in our own firms and businesses. Progress won’t be made overnight, but our resolve must be unwavering, whether it takes three weeks, three months, or three years.

Wondering where to start?

Recognizing that firms and businesses are in different places, please consider these 12 steps for revamping or even starting inclusion initiatives:

1. Acknowledge the challenges faced by the Black and African American community.

An authentic voice is required, and that only happens if there is at least a basic understanding of the underlying hurt. Unless we are willing to suffer the discomfort of confronting our own belief systems, the changes will only last as long as an amazing, visionary leader is in place. Please note that just because you don’t use the “N” word, it doesn’t mean that you have not unconsciously discriminated with your actions or lack thereof.

2. Conduct a “listen and understand” town hall with ideas sourced from team members across the organization.

These are opportunities to hear from the Black and African American community and learn things that may have never been considered. Many of our colleagues are afraid of saying the wrong thing, but you should just speak from the heart. Put yourself in our shoes. How would you feel if it were you or your family?

3. Review the data.

Assess the initiatives around recruitment, promotions, and overall retention of Black and African American team members. Ask tough questions, evaluate the legal department’s concerns, and determine actionable insights. It is true that there are many aspects of diversity, but right now we are talking about the Black and African American community. Where are you recruiting?

What résumés are reviewed? What candidates are interviewed, and who interviews them? Please don’t get distracted by the diverse segments that are easier to show results. Gender is an area where we see focus and increasing improvement.

However, those results are not evenly reflected for Black and African American women. One step further, are there Black and African American executive leaders?

4. Ask periodically for honest feedback on the culture of the organization, and communicate transparently about the results and action plan.

More than words are needed. Team members and, in particular, Black and African Americans are asking for progress across the talent management life cycle. Inclusion and “the best and brightest” are not contradictory statements. Many organizations

Join the discussion in the Diversity & Inclusion Resource Group on WSCPA Connect!

Check it out: wscpa.org/connect

Watch Kimberly Ellison-Taylor's presentation Diversity in the Accounting Profession from the WSCPA's 2020 Student Accounting Accelerator.

Watch now: wscpa.org/taylor-diversity

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DIVERSITY & INCLUSION have at least one Black or African American team member, but this is not perceived as diversity. Firms must determine that they will recruit, develop, advance, and retain diverse individuals. One way to do this is by pushing back on candidate pools and interview panels that do not reflect the Inclusion initiative.

Another way is to crowd source new ideas from across the firm, as well as to seek referrals for high-performing talent — in this case for Black and African Americans.

5. Establish appropriate funding that is aligned with outcomes expected.

In the COVID-19 environment, funding of new initiatives is challenging, but please don’t let that stop you from doing what you can.

6. Communicate the vision.

It is important to bring everyone together on the initiative so it becomes a lived part of the mission, purpose, and values of the organization with accountability at the both individual and management levels. Start with the end in mind. Review the business case for diversity and inclusion. An example is from my Experience Inspiration session on “When Everyone Has a Seat at the Table.” (Watch the video at wscpa.org/table.)

7. Encourage allies to join the affinity groups, and create new groups based on hobbies and interests.

Both are needed to promote teamwork and a sense of belonging and improve retention.

8. Determine ways to promote individual and collective accountability for the inclusion culture and the organization’s core values.

Making everyone responsible in performance evaluations is a great way to align the messaging with the day-to-day life. The chief diversity officers or human resources can’t be the only ones with the inclusion core values in their performance plans.

9. Journey-map the employee experience of various employees across the organization.

Map their experience across the life cycle of hiring, pay, day-to-day work assignments, performance reviews, promotions, and leadership development. Where are there inconsistencies? Why? The results will highlight opportunities for training — for the individual team members as well as middle and executive management.

10. Conduct diversity and inclusion training.

The training should go one level deeper than the “Sense of Belonging” or “Respect Everyone” training that may be in place.

The training must include enhanced real-life exit interview information and work scenarios. It is not surprising if many team members exit the current training thinking, “Who are those people that do those terrible things?” and do not realize the consequences of their own actions. Further, the training must be for everyone, similar to training on sexual harassment,

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DIVERSITY & INCLUSION insider trading, ethics, etc. Why? Because inconsistent training has already led to inconsistent results.

11. Review what additional support and training can be provided to middle managers based on various scenarios and exit interviews.

Ask and evaluate if middle managers support and promote the inclusion initiative. Many Black and African Americans have reported a disconnect between what the CEO says and how middle management executes the message.

12. Move inclusive leadership to the main stage.

If this area is a key strategic priority, it must be discussed, promoted, and reported in the general session with top leadership involvement. Breakout sessions are usually for optional topics.

Further, Inclusive leadership must be demonstrated authentically across conference speakers, panelists, and the program.

The 12-steps list underlying detail must be customized to each firm or company. There are many other considerations that may make some of the things I listed challenging, including pipeline, size of firm, revenue, geography, specialization, etc. But we can all acknowledge, understand, and work with others for progress.

Inclusive leadership is a business imperative that has implications for our customers, clients, and business partners as well. Even if you are in an area where you don’t know a single Black or African American person, you can still implement strategies. It is also true that you could do all of the steps above and still have challenges recruiting and retaining Black and African American employees, but there still is tremendous benefit to be gained.

In a COVID-19 environment with significant economic impacts, we must implement a sensible and realistic plan that promotes progress — every step forward helps. When the camera is off, the social media furor has diminished, and if or when the next tragic event unfortunately happens, we must remain committed. With individual and collective understanding, inspiration, encouragement, lessons learned, and tone at both the top and the middle, our efforts will help those interactions at the workplace, the grocery store, the apartment building, the gym, and the park happen differently.

Kimberly Ellison-Taylor, CPA, CGMA, is executive director, Finance Thought Leadership for Oracle. She is a former AICPA chairman, former chairman of the Association of International Certified Professional Accountants, and former chairman of the Maryland Association of CPAs and is currently the vice chairman of the AICPA’s National Commission on Diversity and Inclusion.

This article was originally published in the Journal of Accountancy and is reprinted with permission.

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Illustration: © iStock/Lyubov Ivanova

We have come together on other initiatives and have made a great difference in promoting the public interest. It is time to use the lessons and best practices we learned to reduce and hopefully one day eliminate racism and unconscious bias.

Together, I am sure that we can do it.

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As a WSCPA member, you are part of a community.

One of the WSCPA's most important functions as an organization is to provide you with opportunities to collaborate, socialize, and celebrate with your fellow members. The Connect platform is your interactive member directory. Find and chat with members from across the state. You can join groups organized around your interests and participate in discussions on a variety of topics that are important to you.

Connect is your gateway to join resource groups and committees. Find groups you are already a part of and find others to join. Then, let the collaboration begin!

Join the discussion and find great resources on Connect!

Women's Initiative Resource Group Diversity & Inclusion Resource Group COVID-19 Business Challenges Resource Group and more!

Check it out: wscpa.org/connect

CPA LICENSURE

CPA Evolution: New CPA Licensure Model Julia Woislaw The CPA Evolution initiative aims to transform the CPA licensure model to recognize the rapidly changing skills and competencies the practice of accounting requires today and will require in the future. It is a joint effort of the National Association of State Boards of Accountancy (NASBA) and the American Institute of Certified Public Accountants (AICPA). Based on the feedback received from over 3,000 stakeholders, NASBA and the AICPA developed a new model for CPA licensure.

The AICPA Governing Council and the NASBA Board of Directors have both voted to support advancing the CPA Evolution initiative.

The Changing Profession Stakeholder feedback and other research show that the body of knowledge required of newly licensed CPAs is growing rapidly (see side note 1).

Additionally, procedures historically performed by newly-licensed CPAs are being automated, offshored or performed by paraprofessionals. Now, entry-level CPAs are performing more procedures that require deeper critical thinking, problem-solving and professional judgment.

“Responsibilities that were traditionally assigned to more experienced staff are being pushed down to the staff level,” said Carl Mayes, CPA, Associate Director, CPA Quality & Evolution at AICPA. “As a result, newly licensed CPAs need to know more than ever before to meet the needs of practice. To protect the public, the CPA licensure model must reflect these changes” (see side note 2).

However, the examination and education requirements can only cover so much information in the current licensure model. As the knowledge required of newlylicensed CPAs continues to increase over time, options include: • Stretch the examination and education requirements to cover a greater range of material with less depth, which would water down the requirements for licensure; • Expand the number of examination and curriculum hours as the body of knowledge continues to grow, which would increase barriers to entry for the profession and ultimately prove unsustainable; • Or find an alternative solution.

Stakeholder Engagement Over the course of three years, NASBA and the AICPA gathered feedback from over 3,000 stakeholders from across the profession to gather input on how to transform CPA licensure (see side note 3).

Feedback included: • Support for the need to change the CPA licensure model • Newly-licensed CPAs should all demonstrate strong common core competencies • The new CPA licensure model should position the CPA for the future • The new CPA licensure model should protect the public interest

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BODY OF KNOWLEDGE FOR NEWLYLICENSED CPAS GROWING RAPIDLY. Compared to 1980, today there are: • 3x as many pages in the Internal Revenue Code • 4x as many accounting standards • 5x as many auditing standards

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DEMANDS OF PRACTICE REQUIRE DEEPER SKILLSETS • Critical thinking • Professional judgement/skepticism • Problem solving • Understanding of business – systems, controls, risk • Data management and analysis • SOC engagements

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CPA LICENSURE

New CPA Licensure Model: Expected to Launch in 2024 In Fall 2019, NASBA and the AICPA reviewed all of the feedback received, studied other professions’ licensure models and considered multiple options for updates to the CPA licensure model before developing the below approach, which will be implemented with the goal to launch a new Uniform CPA Examination in 2024 (see graphic below).

This model: • Enhances public protection by producing candidates who have the deep knowledge necessary to perform high-quality work, meeting the needs of organizations, firms and the public • Is responsive to feedback, as it builds accounting, auditing, tax and technology knowledge requirements into a robust common core • Reflects the realities of practice, requiring deeper proven knowledge in one of three disciplines that are pillars of the profession • Is adaptive and flexible, helping to future-proof the CPA as the profession continues to evolve • Results in one CPA license

This approach is responsive to stakeholder input while still propelling the profession into the future. The new model is a core + disciplines licensure model. The model starts with a deep and strong core in accounting, auditing, tax and technology that all candidates will be required to complete. Then, each candidate will choose a discipline in which to demonstrate deeper skills and knowledge.

Regardless of chosen discipline, this model leads to full CPA licensure, with rights and privileges consistent with any other CPA. A discipline selected for testing does not mean the CPA is limited to that practice area.

NEW CPA LICENSURE MODEL LAUNCHING 2024 1.

2.

3.

4.

5.

6.

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Strong core with accounting, auditing, tax, and technology Deeper knowledge in three primary disciplines Reflects reality of practice Adaptive and flexible One CPA license Enhances public protection

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FEEDBACK GATHERED FROM THESE STAKEHOLDERS: • AICPA Council • Boards of Accountancy • State CPA Societies • Firms of all sizes • Academia • Volunteer committees • Federal regulators • Students • Technology experts • CPAs in business and industry

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CPA LICENSURE IMPACT ON EXAM, EDUCATION AND STATES

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Exam Still expected to be four sections: candidates pass three core sections and one discipline Education Will provide resources to support tech integration, model curricula and model internship States • Will need statutory change in one state and rules changes in 7 states • UAA model rules changes around education • Will aspire to uniformity in all states; not required to implement CPA Evolution

Julia Woislaw is Lead Manager, CPA Evolution for AICPA.

What’s Next The AICPA Governing Council and the NASBA Board of Directors recently voted to support the CPA Evolution initiative. Plans are being established for a multi-year effort to implement this licensure model. The goal is to launch a new exam in January 2024 (see side note 4).

As part of the CPA Evolution initiative, the leadership of NASBA, in collaboration with the AICPA, determined that the Uniform Accountancy Act Model Rules around educational requirements for licensure needed to incorporate additional subjects and skills reflective of the evolving profession, and create more consistency. Those changes, which were endorsed by AICPA’s Board of Directors, were exposed for public comment by NASBA from May 26, 2020 through August 31, 2020. NASBA expects to issue final model rules this fall. You can find the exposure draft at wscpa.org/exposure-draft.

NASBA and the AICPA will continue to work collaboratively with stakeholders from across the profession to implement this new licensure model. Both organizations are eager to move forward with a core + discipline model to meet the needs of the profession and the public.

You con contact her at julia.woislaw@aicpa-cima.com.

For more information and updates, visit evolutionofcpa.org

Graphics: © iStock/portarefortuna

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.CPA

.CPA

A Restricted Domain Exclusively for the CPA Profession

Evolution of the Internet and Top-Level Domains Our lives increasingly take place online. Thanks to the connecting power of the Internet, it’s possible to perform the majority of activities that make up our day-to-day – banking, communication, entertainment, research, to name just a few – from our computers.

But as the Internet’s power and capabilities have multiplied, so too have the bad actors who operate within it. “Today, there’s a lack of authentication and growing mistrust of online information,” said Erik Asgeirsson, president and CEO of CPA. com, the AICPA’s business and technology arm. Cybercrime frequently involves the exploitation of top-level domains, or the string of letters that follow the dot in a URL or email address. A crucial part of the Internet’s navigation system, there are currently more than 350 million unique domain names, a significant percentage of which are being used in phishing, malware, and ransomware schemes.

Graphics: © iStock/amtitus

To combat this, new trust and security features are being put in place, notably protected top-level domains. While most top-level domains are open, available to anyone, restricted top-level domains are only accessible to verified users. “This is why many leading companies and communities, such as Amazon, KPMG, and the banking industry are moving to restricted top-level domains,” Asgeirsson said. A secure, verified domain allows organizations to validate and oversee access, which restricts bad actors’ ability to spoof and otherwise impersonate legitimate addresses and accounts.

Enter .cpa, a new restricted domain exclusively for the accounting profession.

Owned by AICPA and managed by CPA.com, the top-level domain name is reserved exclusively for licensed CPA firms and licensed individual CPAs. License verification will take place at the time of purchase as well as when a .cpa domain is renewed, a process that maintains exclusivity and allows firms to more securely communicate with clients, partners, and prospective hires.

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.CPA

In addition to added security, access to the .cpa top-level domain opens the door for firms to secure a URL that aligns with their desired marketplace branding and positioning, while also signaling a verified connection to the profession.

Restricted Domain

.cpa provides:

Why get a restricted domain?

• Restricted to a community or group with a barrier to entry.

• Provides greater availability of branding options • Allows you to better position your name or brand to the left of the extension versus the right of the extension: garciajonescpas.com vs. garciajones.cpa

Security • Mitigate firm risk (e.g., cyber squatting, phishing attacks) • Added layer to protect client data

Benefits of being restricted?

• Registry’s required to monitor for malware and other malicious activity • No cyber-squatters buying up all the most valuable names • No cyber criminals exploiting lookalike domains

Trust • A verified digital identity helps build trust and credibility with clients • Restricted domains provide trust through community

Brand • Amplify your online presence • Distinction through community • You’re a digitally progressive firm

Early application deadline for .cpa is October 31, 2020.

Learn more about .cpa at domains.cpa/resources

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INTERNAL CONTROLS

Internal Controls in a Remote World Natalie Rooney As remote work takes hold at CPA firms and organizations, getting a grip on internal controls is essential for overcoming the security risks of an at-home workforce.

Before COVID-19, working from home full time was the exception rather than the rule. According to a June 2020 survey by IBM Security and Morning Consult, 83 percent of respondents said that prior to the pandemic they worked from home either rarely or not at all. In face-to-face, pre-pandemic office settings, employers and IT teams managed, implemented, and monitored security measures and protocols from a central location. Now those systems are upended.

“Managing internal controls in an office setting is one thing.

Managing internal controls when everyone is working from their kitchen tables is another thing altogether,” says Bob Dohrer, CPA, CGMA, chief auditor for the AICPA. As pandemic concerns remain high, many workplaces plan to continue remote work into 2021 and beyond, and organizations may find themselves playing catch-up as they try to manage potential security risks in a world where in-person oversight is impossible and traditional controls are ineffective. The pandemic has exacerbated the usual risks, with remote work, furloughs, and layoffs all creating new weaknesses. “Suddenly there may be fewer people available to process financial transactions, and that creates pressure,” Dohrer says. “Combine all of this with issues surrounding the segregation of duties, and teams that aren’t interacting in a live setting, and problems can develop quickly. Controls designed for the office just don’t work as well in a virtual environment. We have a new level of consideration that has to take place.”

If you haven’t revisited your internal controls lately, now is the time, says Jenny Deloy, CPA, MBA, Marcum LLP’s Chicago office managing partner and Illinois region partner in charge of assurance services. “Change, anxiety, and uncertainty are creating an environment where fraud proliferates, and fraudsters are out there with new scams to convince people to do things they wouldn’t normally do,” she explains.

As a result, companies need to be very aware of the steps they can take to avoid the opportunity for fraud, advises Elizabeth Sloan, CPA, managing director in Grant Thornton’s Chicago audit methodology and standards group: “Since we’re not all physically together, we need to think about the basics. What changes have occurred to the control environment because of remote work? We need to be sure we’re thinking about the right things and not becoming complacent.”

Here’s how to ensure your internal controls remain relevant in a remote environment.

"If you haven’t revisited your internal controls lately, now is the time."

Graphics: © iStock/akindo

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INTERNAL CONTROLS Step zero, Sloan says, is to embrace the change: “Think of this as an opportunity to improve and build a more effective structure of internal controls rather than just having an interim structure.”

After that, take these steps: #1: Reexamine segregation of duties. Look for gaps or dead ends in workflows created by virtual work. How might duties need to change or be restructured? If sign-offs were previously handled manually, how are they handled now? Has there been a loss of checks and balances? #2: Take advantage of technology. Use secure portals to transmit documents, leverage the cloud, and embed timestamps on files to tighten security. #3: Track, document, and confirm. These steps are so basic that they’re often overlooked, Dohrer says. Reach out to the information sender. Confirm they sent it, and it’s what you received. Track and document any changes made to approval levels, access rights, procedures, or responsibilities. #4: Know your data. What data do you have? Who can access it? Verify that data, including something as simple as a videoconferencing link, is not publicly accessible or open to more internal access than necessary. #5: Find new lines of communication.

“Casually passing someone’s office used to spark conversations,” Deloy says. “Now that you’re not in front of someone, you might not hear about problems. Initiate conversations on a regular basis and in a collaborative way. Make sure you’re on the same page and pursuing the same goals.” Consider checking in daily with your team and using video more often than telephone or email.

#8: Draw attention to ongoing monitoring. Continuously discussing processes demonstrates to team members that someone is always assessing the situation, and that can be a real fraud deterrent. “If someone is considering bad behaviors, just knowing someone is watching is helpful, even if they’re watching from home,” Deloy says. #9: Remember the human element. Don’t forget about the people behind the processes. “Make sure team members are engaged and not burned out,” Sloan recommends. “Working virtually in a pandemic means the opportunity and pressure to potentially commit fraud are already there. If people lose their engagement, they can easily rationalize things they usually wouldn’t do.” #10: Communicate with your clients. A review of internal controls presents a perfect opening for firms to reach out to clients. “Help them think about these matters within their organizations, because their attention is definitely elsewhere,” Deloy urges. “Take advantage of this opportunity to advise, guide, and help your clients revisit, refresh, and improve their internal controls.”

Can Be Better

Do you really need to think about internal controls differently in a virtual world? Yes. Do organizations need to panic? No. Remember: The fundamental principles don’t change. “You don’t need to adopt a new framework and change everything,” Dohrer says. “Think about a control objective in the manual world, and then consider how that can be accomplished in the virtual world. Most businesses and auditors will find that a good understanding of fundamental principles will go a long way in this environment.”

“Think of this as an opportunity to improve and build a more effective structure."

#6: Assess cyber risk. IBM’s report found that fraud has risen dramatically since March. “Cyber risk assessment is crucial right now,” Deloy cautions. “Provide teams with training and awareness of cyber-related matters so they recognize current scams.” Now is a good time to confirm your IT systems are in place and working securely and that proper passwords, encryption services, and multifactor authentication are in place. #7: Get leaders involved. “Those charged with governance need to remain visible to employees, particularly in the accounting function,” Deloy stresses. She suggests using live video for meetings. “Your team needs to see leaders involved, monitoring, and supporting positive behaviors. People want to do the right thing. Provide the support they need to do so.”

Rather than dragging organizations down, virtual work and rethinking internal controls and processes should be propelling organizations forward, Sloan suggests. “At Grant Thornton, we’re focusing on quality and are working smarter by utilizing more advanced data. Examining data analytics has allowed us to be more precise and to home in on specific risks,” she shares.

“From a technology perspective, remote work has helped us improve our communication and use more tools to facilitate collaboration. We’re not just doing what we’ve always done.

Even when we’re back in the office, we won’t go back to the way things used to be.”

Natalie Rooney is owner of Executive Communications.

You can contact her at natalie.g.rooney@gmail.com.

Reprinted with permission from the Illinois CPA Society’s Insight magazine.

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TECHNOLOGY

Accounting brings with it a heavy mental workload—and even accountants who absolutely love crunching numbers eventually start to feel the strain.

Through automation, you can reduce many of the menial tasks you are responsible for every day, freeing you up to take on more important advisory tasks that will help advance your clients' or organization’s financial situations and provide you with vital information about tax responsibilities, investments, and more.

Automation can categorize transactions, run payroll, pay bills, run financial reporting (that's easy to read and understand), invoice clients/vendors, take care of revenue recognition, and more.

Further, automation helps reduce mental stress and decreases frustration related to deadlines. The result? Your firm has happier team members who can focus their efforts on high-value tasks and do more of what they enjoy, as opposed to the monotonous and never-ending data catch-up.

By off-loading the manual and laborintensive tasks, not only can you do more for your clients, but that decreased mental load can help you and your staff feel sharper and better prepared.

Jessica King

DOES YOUR ACCOUNTING FIRM/TEAM REALLY NEED AUTOMATION? The short answer? Yes. Maybe your accounting firm or team has operated just fine without automation.

But the reality is that you must prepare for the future—today.

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TECHNOLOGY The CPA profession has matured away from the mind-set that automation is replacing people. Automation is simply the next step in accounting evolution... as vital and necessary as embracing the calculator or the spreadsheet.

The latest generation of accounting trends will allow you to stop spending your time just "keeping up" with the manual data work. Instead, you'll get to spend your time actually using that data to create a value-focused firm/team.

Automation is fast.

AI is faster at completing many of the tasks that your accountants accomplish every day, and it's more effective. However, AI doesn't have the technology to replace human thought, and in some instances, it requires human involvement to verify information.

Automation is more accurate.

AI spots even the smallest errors immediately. High-quality AI will not only use automation to categorize but also to correct mistakes and adapt the structure for future processes.

Automation can reduce burnout.

You want to keep your accountants and make your organization a great place to work. For modern accountants, that means offering automated solutions that can help make it easier to accomplish the tasks on their plates every day.

These are just the AI technologies and trends we’ve begun to adopt, and on the horizon, there’s so much more to be discovered, understood, adapted, and applied. Bringing the right automated solution into your firm can make a big difference as to how your accounting firm conducts its business, differentiates itself from the competition, and positions for future success.

So when it comes time to devise an action plan for the upcoming quarter at work, take a moment to consider: Are you creating a strategy that aligns with where you're headed, or where you are now?

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HANDING IT OVER TO AUTOMATION Automation and artificial intelligence can take on a number of the “decisions” that once relied on a human being—while simultaneously removing the inevitable human-error factor. AI can automatically go over data to make sure that it's as accurate as possible, including:

Checking sources against one another to make sure they match.

Does the information in Spreadsheet A match the information from Invoice B? Your system can check that information for you automatically, which means that your clients will always be working with accurate information.

Checking sources against past reports.

Is an invoice wildly different from the ones usually sent by that company? Does a payment fail to reflect the amount a specific company has paid in the past, or the amount that the company usually pays for specific services? Automated bookkeeping software can automatically check those sources and reconcile them, then flag the ones that need further attention from a live person.

Confirming payments.

Automated bookkeeping software can help keep up with payments and debits to all client accounts. The system can also automatically recalculate balances and keep track of expenses, making it easier to deliver insights into your clients' spending and suggested changes for improving their financial outcomes.

Augmenting manual tasks with automation.

Some tasks still require manual input, but that doesn't mean you have to handle them entirely by yourself. Effective accounting and bookkeeping software can augment those processes, ensuring accuracy and speed.

Automation can't entirely replace all of the processes that accountants perform everyday, but it can provide critical assistance to accounting firms, reducing overall barriers to growth and preventing the likelihood of errors in their daily tasks.

SO YOU'RE READY TO ADOPT AUTOMATION: NOW WHAT? Before you dive in and purchase software to help take over those tasks, you’ll need a solid idea of what you're looking for. Additionally, it's important to have a plan for implementation that will help you get the maximum value out of your chosen software.

Questions to consider: • • • •

W ● ill automation allow your firm to grow your book of business by servicing new industries? ●Will it provide the ability to offer additional, value-based services to existing clients?

W ● ill the software enable you to leverage recouped capacity elsewhere?

Or is this a chance to reduce resources?

H ● ow do you envision the roll-out and change management?

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TECHNOLOGY

HOW ARE YOU USING THE SOFTWARE? That depends on your organization’s requirements. Do you need:

Illustrations: © iStock/luplupme

Software that can support the needs of multiple, different clients?

When you choose accounting or bookkeeping software, make sure it's set up to handle the specific, unique needs of your firm—that includes tools to support both your success as a firm and your clients' success, too.

Software that automates your firm's most inefficient internal processes?

You want a solution that will take over or streamline the tasks that bog your staff down, not one that will leave your accountants with their least favorite work still on their plates at 4:30.

A solution that will allow your business to grow?

By automating your bookkeeping tasks, you’ll likely discover that your book of business can grow in ways you didn't anticipate in the past.

Consolidating your tech stack?

Finding a platform that allows you to consolidate your technology and manage your clients from one place (without having to become a systems integration expert) is key.

Training and support?

Learn more about automation in accounting at wscpa's new Spark Technology Virtual Conference on Dec. 3!

Explore topics and register: wscpa.org/tech-automation

Not only do you need to select effective accounting automation options that will allow your accountants to spend less time on menial tasks (and more time actually using the data in front of them), but you also need each member of your team to know how to actually use the technology.

SECURITY SOLUTIONS FOR YOU AND YOUR CLIENTS As an accounting firm, you deal with a consistent stream of confidential data from all of your clients. You may have access to sensitive information—not just payment information, but information about the business' finances that your clients don't want disclosed. As a result, you need to carefully consider the security offered by the software you choose.

Think about:

How is the information stored and protected?

Jessica King is an experienced B2B marketer with a history of working in the software, Saas, technology, accounting, and services space.

She is Vice President of Marketing at Botkeeper. You can contact her at jessica@botkeeper.com.

Cloud storage can make your data easily accessible, but you want to make sure that the information is encrypted and protected so that it's not vulnerable to hacking.

SOFTWARE THAT FITS YOUR BUDGET Your accounting software shouldn't be one of the biggest expenses that your firm faces. Instead, it should be an addition that allows you to grow your book of business and continue to provide high-quality service to your clients without substantially increasing your firm's expenses.

It all comes down to the right fit for your firm, and that means you have to know what questions to ask and what to look for in a solution.

The discovery process for any new piece of technology or service is never easy, and it's often overwhelming, but hopefully, this guide helps you navigate that process with a bit more confidence.

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STATE TAX

State Tax Nexus: Frequently Awkward Questions Mark Hugh, CPA

In the last two years, 43 states have expanded their rules regarding tax “nexus”, whether a business has to collect and/or pay state taxes to a state. The requirement for compliance has exploded with now smaller businesses having multiple tax connections to multiple jurisdictions, even with very limited activity and very limited contact.

If you have not reviewed your filing obligations within the last two years, it is important to review them immediately.

As a guide we present the following FAQ: Frequently Awkward Questions.

What is nexus?

What is economic nexus?

A “sufficient link” or “tie” with the power of a jurisdiction to tax.

Nexus is created by transitory activities such as visits to a state, as well as permanent activities such as having an employee or inventory in a state, or recently, merely a certain amount of transactions or sales made in a state.

Affirmed by the U.S. Supreme Court in Wayfair et. All v. South Dakota (2018), a seller with no physical presence in a state is required to collect or pay taxes to a state if sales or transactions sourced to a state are over certain annual thresholds.

Is this a sales tax thing or an income tax thing?

Nexus is an every "thing". These rules apply to all taxes, and taxing authorities may use different standards internally for different types of taxes.

South Dakota required sellers with no physical presence to collect and remit sales tax if annual South Dakota sales exceeded $100,000 or 200 or more annual South Dakota transactions.

“Physical presence” or “economic nexus” and states are free to pick and choose one or all. Many states have chosen both.

This has created an explosion of new nexus standards: since 2018, 43 of the 45 states that impose sales taxes have adopted economic nexus standards, many similar to South Dakota’s.

What is physical presence?

Are there any federal protections?

“Physical presence” is generally property or employees/independent contractors within a state on even a transitory basis, or in-state activities to establish or maintain a market.

One very old federal law still applies to state income taxes.

The Federal Interstate Income Act of 1959, known as P.L. 86-272, provides a safe harbor for taxes based upon net income. It provides a state income tax safe harbor for: soliciting orders; for sales of tangible personal property; with the orders sent outside a state for acceptance; and filled by shipment or delivered from outside a state.

What are common nexus standards?

In Scripto Inc v. Carson (1960), the U.S. Supreme Court held that third parties create nexus and whether salespeople were employees or not was “without constitutional significance”.

It noted “to permit such formal ‘contractual shifts’ to make a constitutional difference would open the gates to a stampede of tax avoidance”.

What are examples of physical presence?

Illustrations: © iStock/ojogabonitoo

Property in a state on a permanent or temporary basis; an employee in a state on a permanent or temporary basis; soliciting sales in a state by an employee or by using an agent; or installing, assembling, or repairing goods in a state.

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STATE TAX

What does P.L. 86-272 not apply to?

What about materiality?

Business taxes not based upon net income, such as Delaware, Hawaii, Nevada, Ohio, Oregon, Texas, Washington; minimum taxes in any state such as the California minimum tax; sales of other than property such as services or royalties; or sales taxes.

Materiality is for CPAs, not state taxing authorities. Even in low gross receipt states, if nexus exists, taxing authorities want returns with no or low activity, as state and local governments fiercely defend their sovereign taxing power, and relief runs through unfavorable state and local courts.

What financial information should I review?

Gross income by jurisdiction, generally sourced to the customer location or the delivery location; gross income should be separated by service and property; and gross income should be separated by whether at wholesale or retail.

Mark Hugh, CPA, is the principal of Mark Hugh PLLC. You can contact him at mark@markhugh.com.

For sales tax purposes, it is important to review the number of state sourced transactions per year. Under general Wayfair standards, the test is more than $100,000 of annual sales in a state OR more than 200 annual transactions in a state. An average transaction of $50 in a state times 200 annual transactions creates an obligation to collect the sales tax with total annual sales in a state of only $10,000.

What else to think about?

There is a reasonable connection between the amount of gross sales in a state and the marketing activity in that state, higher gross sales usually mean more marketing activities and connections in a state. Employees based in or entering any state generally creates nexus unless narrowly protected under P.L. 86-272. Ownership of property always creates nexus.

Low gross sales states may result in low income tax, potentially immaterial, but sales tax may be more material, as based upon gross amounts and new Wayfair based standards apply to a low level of activity or transactions in a state.

Learn more from Mark 2020 Not-For-Profit & Health Care Virtual Conference November 16-19 2020 Pacific Tax Virtual Institute November 5-6 Washington Sales Tax Webcast November 5, November 20, December 21 Washington Tax for Service Businesses November 16, December 14 Washington Tax Audits October 29, December 14

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Upcoming CPE A selection of WSCPA CPE events scheduled October - January are listed.

To view the hundreds of course listings and complete details, please visit the CPE & Event Catalog at wscpa.org/cpe.

Pacific Tax Institute Virtual Conference Webcast, November 5-6 12 Credits

The Pacific Tax Virtual Institute will provide you with comprehensive updates of the most recent federal and state tax developments and help you prepare to advise your clients through the next round of tax returns. Join top practitioners/ educators Sam Donaldson, Mark Hugh, and Ed Zollars for in-depth discussion and analysis of emerging tax issues affecting your practice and clients, including recent federal tax updates, Paycheck Protection Program loans and the CARES Act, and state and local tax ramifications. Plus, hear from the AICPA what the landscape could look like post-election, and so much more!

Not-For-Profit & Health Care Virtual Conference Webcast, November 18-19 16 Credits

The pandemic, as well as its attendant work culture and legislative changes, has disrupted business as usual so much that we’re all still trying to figure out what “the new normal” will be. You're not alone. Join other professionals and learn about what's new in the not-for-profit and health care accounting worlds together at the WSCPA Not-For-Profit and Health Care Conference.

Discover how to persevere in the face of disruption, build resilience into your strategy, and support your clients.

Spark Technology Virtual Conference

Fraud Virtual Conference

Leadership Mastery Series

Ethics - Now On Demand

Webcast, December 3 8 Credits

Webcast, October 26. November 30, December 29 2 Credits Each 28

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Webcast, December 10 8 Credits

Self Study 4 Credits

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Register at www.wscpa.org/cpe

EDUCATION AND EVENTS

Online CPE

Reduced Virtual Event Pricing

DATE

COURSE TITLE

CREDITS

11/2

Passive Activities WEBCAST

8

11/2

Surgent's Advanced Critical Tax Issues For Limited Liability WEBCAST

8

11/3

Securing A Comfortable Retirement in the Age of Spending WEBCAST

8

11/3

The Best S Corporation, Limited Liability and Partnership Update Course by Surgent WEBCAST

8

11/4

Forensic Accounting Investigative Practices WEBCAST

8

11/4

The Best Individual Income Tax Update Course by Surgent WEBCAST

8

11/5

Internal Control and COSO Essentials for Financial Managers, Accountants, and Auditor WEBCAST

8

11/5-6

Pacific Tax Institute Virtual Conference

12

11/5

Washington Sales Tax WEBCAST

2

11/6

2020 Rules, Regulations, and Ethics for CPAs in Washington by Thomas Neill (A WA Requirement) WEBCAST

4

11/6

Annual Update and Practice Issues for Preparation, Compilation, and Review Engagements WEBCAST

8

11/9

Federal Tax Update -Individuals (Form 1040) WEBCAST

8

11/9

Reviewing Individual Tax Returns: What Are You Missing? WEBCAST

4

11/9

Reviewing Partnership Tax Returns: What Are You Missing? WEBCAST

4

11/10

Audit Working Papers: Documenting and Reviewing Field Work WEBCAST

8

11/10

Federal Tax Update - C & S Corporations, Partnerships & LLCs (Forms 1120, 1120S & 1065) WEBCAST

8

11/11

Annual Update for Accountants and Auditors WEBCAST

8

11/12

Revenue Recognition: Mastering the New FASB Requirements WEBCAST

8

11/12

Washington State Community Property and Estate Tax Law Update WEBCAST

8

11/13

Hottest Tax Topics for 2020 WEBCAST

8

11/13

Leases: Mastering the New FASB Requirements WEBCAST

8

11/16

Accounting and Reporting for Not-for-Profit Organizations WEBCAST

8

11/16

CFO Series: Emotional Intelligence WEBCAST

8

11/16

Washington Tax Audits WEBCAST

1

11/16

Washington Tax for Service Businesses WEBCAST

2

11/17

Enterprise Risk Management: New Approaches for Today's Complexities WEBCAST

8

11/17

Real-World Frauds Found in Governments WEBCAST

4

The Washington Society of CPAs is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of group live and group-internet-based continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org For more information regarding refunds, complaints, program cancellations or other policies visit www.wscpa. org/cpe/cpe-policies or call 425.644.4800

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EDUCATION AND EVENTS

Register at www.wscpa.org/cpe Reduced Virtual Event Pricing

DATE

COURSE TITLE

CREDITS

11/17

Real-World Frauds Found in Not-for-Profits WEBCAST

4

11/18

Annual Update for Controllers WEBCAST

8

11/18-19 2020 Not-For-Profit & Health Care Virtual Conference

16

11/19

Washington Ethics and New Developments 2020 WEBCAST

4

11/20

Washington Sales Tax WEBCAST

2

11/23

Governmental and Not-for-Profit Annual Update WEBCAST

8

11/23

Washington Ethics and New Developments 2020 WEBCAST

4

11/23

WSCPA's Accelerated 1040 with Art Werner WEBCAST

8

11/24

A Practical Guide to Trusts WEBCAST

8

11/24

Real-World Fraud Found in Governments and Not-for-Profits WEBCAST

8

11/30

2020 Rules, Regulations, and Ethics for CPAs in Washington by Thomas Neill (A WA Requirement) WEBCAST

4

11/30

Leadership Mastery 2020Â Webcast Series - Coaching for Impact

2

12/1

2020 Federal Tax Update for Individuals with Greg & George WEBCAST

8

12/2

2020 Federal Tax Update for Business with Greg & George WEBCAST

8

12/3

2020 Spark Technology Virtual Conference

8

12/4

Employment Law Update: Key Risks and Recent Trends WEBCAST

8

12/7

Professional Conduct & Ethics - AICPA and Washington Board CPA Regulatory Update - 2020 WEBCAST

4

12/7

Surgent's Annual Tax Planning for S Corporations, Partnerships and LLCs WEBCAST

8

12/8

Character of Income WEBCAST

8

12/8

Comprehensive Guide to Tax Depreciation, Expensing, and Property Transactions WEBCAST

8

12/9

Partnership Taxation WEBCAST

8

12/9

Washington Ethics and New Developments 2020 WEBCAST

4

12/10

Complete Guide to Payroll Taxes and 1099 Issues WEBCAST

8

12/10

2020 Fraud Virtual Conference

8

12/11

Employer's Handbook: Legal, Tax and Health Care Issues WEBCAST

8

12/11

Qualified Business Income Deduction - Section 199A WEBCAST

4

12/14

Federal Tax Update - Individual & Business Current Developments WEBCAST

8

12/14

Like Kind Exchanges & Involuntary Conversions WEBCAST

8

12/14

Washington Tax Audits WEBCAST

1

12/14

Washington Tax for Service Businesses WEBCAST

2

12/15

Federal Tax Update - Individuals 1040 WEBCAST

8

12/15

Financial Statement Disclosures: A Guide for Small and Medium-Sized Businesses WEBCAST

4

12/15

Guide and Update to Compilations, Reviews, and Preparations WEBCAST

4

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Register at www.wscpa.org/cpe

EDUCATION AND EVENTS Reduced Virtual Event Pricing

DATE

COURSE TITLE

CREDITS

12/15

Rental Real Estate WEBCAST

8

12/16

Federal Tax Update - C & S Corporations,Partnerships & LLCs (Forms 1120, 1120S & 1065) WEBCAST

8

12/16

Preparation and Compilation Engagements Under the SSARS WEBCAST

4

12/16

The Most Dangerous Elements of a GAAS Audit WEBCAST

4

12/17

CFO Series: Cash Management WEBCAST

8

12/17

Tax Planning for Small Businesses WEBCAST

8

12/18

CFO Series Become More Effective WEBCAST

8

12/18

Tax Research I WEBCAST

4

12/18

Tax Research II WEBCAST

4

12/21

Annual Tax Update: Individuals Sole Proprietors WEBCAST

8

12/21

Washington Sales Tax WEBCAST

2

12/22

Tax Fundamentals of LLCs Partnerships WEBCAST

8

12/29

2020 Rules, Regulations, and Ethics for CPAs in Washington by Thomas Neill (A WA Requirement) WEBCAST

4

12/29

Leadership Mastery 2020Â Webcast Series - Performance Execution

2

12/30

Federal Tax Update for Businesses with Greg and George WEBCAST

4

12/31

Washington Ethics and New Developments 2020 WEBCAST

4

1/6

Federal Tax Update with George & Greg WEBCAST

8

1/11

Washington Ethics and New Developments 2020 WEBCAST

4

1/13

Preparing Individual Tax Returns for New Staff and Para-Professionals WEBCAST

8

1/14

Hot IRS Examination Issues for Individuals and Businesses WEBCAST

8

1/25

Tax Advisor's Update WEBCAST

8

PEAK FIRMS

INTRODUCING WSCPA PEAK FIRMS! BENEFITS FOR FIRMS: •

Membership Dues Stay With Your Firm – Traditionally, WSCPA memberships remain with an individual, even if they leave your firm. When a member leaves a Peak Firm, we’ll honor your previous investment by providing FREE membership for the remainder of the membership year to your new hire.

•

FREE WSCPA Room Rental – One room per year, up to $920 value, subject to availability.

•

FREE Job Listings – Up to two free listings on the WSCPA Job Board per year, additional listings at discounted member rate.

Up to $200 value.

•

FREE Passport Corporate Cards – All staff, members, and support staff/nonmembers; up to 30% of paid membership.

As f CP o y t ocie

•

Recognition – Your firm will be listed as a Peak Firm on the WSCPA website and social media, as well as in our quarterly magazine, The Washington CPA.

1

The WSCPA Peak Firm program recognizes and awards special benefits to firms that sign up 100% of their eligible staff for WSCPA membership. Being a Peak Firm establishes you as a leader in the profession and provides an array of discounts and benefits.

•

Receive a Peak Firm Logo – Display on your website and to recruit staff and clients.

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All benefits are for the membership year, June 1 - May 31.

DO YOU QUALIFY? HERE'S HOW TO BECOME A PEAK FIRM. •

100% of your licensed CPA staff are enrolled as WSCPA CPA Members.

•

100% of your students, exam candidates and exam passers that are not yet licensed are enrolled as WSCPA student members.

•

Your firm has demonstrated commitment to the profession by making a contribution to the Washington CPA Foundation or CPAPAC of at least $50 before May 31, 2021.

Request enrollment in this program by completing and submitting the Peak Firms Enrollment Form at wscpa.org/peak-enroll

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PEAK FIRMS

CURRENT PEAK FIRMS

Photo: © iStock/lightphoto

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CLASSIFIED

Detailed advertising information is available online at wscpa.org under Resources.

Contact Sharon Olene-Marander at smarander@wscpa.org for more information.

Mergers & Sales Considering Selling Your Practice? Consider all your options. We do the work. Confidential.

We have buyers actively seeking practices. Call Mark Hause at (877) 345-7722 or visit our website at www.accountingpracticesales.com Accounting Practice Sales. We make dreams happen!

IBA Sells Privately Held Companies. Do you represent a client who is ready to retire or has taken a company as far as they want to or can? IBA is the Pacific Northwest’s oldest business brokerage (M&A) firm. We are professional negotiators with over 4000 completed transactions. Please contact us if we can be of assistance at (800) 218-4422 or www.ibainc.com

Office Space

Volunteer Opportunities

Office space for Rent - S King/N Pierce Counties.

Well located south King/north Pierce counties, Attractive and Reasonable. Space is in a Park Like setting with a cooperative Landlord. There is room to expand, if needed. Contact Mark Freitas at markfccim@gmail.com or 206.947.3313 for more information.

Situations Wanted CPA/Accountant To Share Office Space (Redmond) Older CPA looking for person with their own clients to share office space in exchange for assisting me in my tax practice. Experience with Pro/Fx CCh tax software needed. Convenient downtown location with ample parking. Opportunity for practice succession in the future. Contact Van Deming at van@demingandassociates.com or 425.883.2441.

(WA 1142) Southwest Washington: This full service CPA practice with a small audit practice is for sale. The firm has focused on client service in all its years. As a result, all of the firm’s clients are the result of client referrals who make up a solid group of clients with little if any turnover.

In addition, the firm has a balanced work load through the year to avoid the frantic pace some firms have during tax season. This management approach makes the work year and summertime enjoyable for all concerned. The profitability of this firm is excellent easily being in the highest percentile of comparable sized firms with fee averages well above the norm. This practice fits any number of potential buyers regardless of size and client composition who are looking for a solid and stable firm for a spring board to future growth.

SOLD

(WA 1144) Bellingham/Ferndale Area: This CPA practice is a full-service practice including attestation services in the professional services rendered. The firm revenue percentages are income tax 54%, auditing 28%, reviews 13%, with the balance being consulting engagements. The practice is filled with many long-term clients, with low turnover, who provide the practice with new client referrals, that include a high number of client’s with multiple engagements involving personal, business, and fiduciary returns. This firm provides excellent net cash flow to the owner and is a great opportunity to move into ownership or expand your existing practice. To assist in the acquisition of the firm, the Seller will finance a significant percentage of the purchase price provided the Buyer makes a sizable down payment and has excellent credit and collateral.

(WA 1143) Centralia/Chehalis/Olympia Area: This CPA tax practice is for sale. The firm revenues are 100% income tax preparation providing the opportunity to grow by either adding write up services or continuing the rapid growth experienced in tax services. The profit of the practice is excellent with approx. 75% of fees being realized by the owner. In addition, the fees are excellent and allow for this firm to fit nicely into any practice regardless of the size of the firm. The practice is an ideal opportunity for any individual or firm looking to start or expand a firm with little to no changes.

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(WA 1141) Seattle: This CPA practice is unique in that it provides a wide variety of governmental accounting and attestation services. These services include performance audits, attestation services, and internal control assignments. The firm is filled with many loyal clients with long term relationship who consistently utilize the professional services of the firm. Reflecting the commitment and desire to provide the best transition possible, the Seller’s are insistent on providing a hands-on transition for the Buyer of this excellent practice. This firm offers a unique opportunity for any practitioner or firm to immediately be a force in the arena of governmental accounting services. Any firm with experience working in this field of professional services will have an advantage in acquiring this practice.

(WA 1138) Seattle-Financial District: This EA practice is 100% tax services with per return averages of approx. $1,500 per return for all professional services rendered. With the growth of the Seattle metro area, a high percentage of clients have opted to mail in their returns. As a result, the practice uses a home office and an office time share for its facilities. The result is a

The following organizations need a CPA to serve on the board of directors and/or provide other guidance on financial matters. Learn more about these and other organizations that need your help online at wscpa.org under community.

Arivva Center for Arts & Technology Cedar River Montessori School Helping Link / Môt Dâu Nôi NARAL Pro-Choice Washington Northwest Justice Project The Max Foundation Tilth Alliance Washington CASA Association

very reasonable charge for office facility expense.

If desired, the office arrangements could be a more traditional in nature with an accompanying increase in monthly obligation for the increased office square footage. All of these qualities in this practice make for an excellent addition to any firm’s client base with excellent average fees that make this an easy decision.

(WA 1133) North East Washington/ Stevens County: This CPA firm located in North East Washington is a tax and accounting practice with a small amount of write up during the year. The practice revenues consist of income tax preparation and consulting 97% and write up 3%. The firm’s fee structure is excellent with realization rates that are the equal of any firm regardless of size. The strength of the firm is found in the cash flow to the owner that is well above the norm reflecting the excellent management practices of the Seller. This firm is the perfect fit for a professional looking for an excellent opportunity coupled with a pace and style of life that is not big city. When combined with a Seller who seeks to provide a good transition, this firm provides opportunity that many seek but few find in moving to ownership.

(WA 1126) Island County: This well-established enrolled agent practice is for sale. The firm is well balanced with a tax practice that produces 75% of revenue and a write-up practice that generates the balance. The practice is well positioned for future growth due to having a solid staff serving long-term clients. The Seller is retiring but will be available to assist in transition. For any firm looking for a satellite office, an existing practice wishing to branch out, or an individual who has aspirations of getting out on their own, this practice is an excellent choice. The Seller, to assist in the sale, will consider financing the purchase of the practice provided the Buyer makes a substantial down payment and has excellent credit and collateral.

SOLD

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CLASSIFIED ADS

Pierce County Tax Book of Business: Private Practice Transitions is assisting a client in Pierce County with the sale of a thriving book of tax business. The service breakdown is 94.5% Tax Return Preparation & Accounting Services and 5.5% Bookkeeping. The book of business includes over 700 active clients that bring in an average of over $285,000 each year (2017-2019), with 2020 revenues looking even stronger. If you’re interested in adding this solid book of clients to your current business, contact us today! Email "Listing #1122 – Pierce County Tax Book of Business" to info@privatepracticetransitions.com or call 253.509.9224 to learn more.

Clackamas County Oregon CPA Practice: Private Practice Transitions is assisting a client, located in Clackamas County, Oregon with the sale of an established CPA business. The firm’s service by revenue breakdown is 63% Income Tax Preparation, 15% Consulting & Tax Planning, 10% Review Engagements, 10% Compilation & Write Up, and 2% Payroll. The firm is owner operator and has extremely low overhead with 2019 Seller’s Discretionary Earnings at almost 89% of gross revenue. The owner is willing to stay on for up to one year to assist with the transition to new ownership, if desired. For more information email “Listing #1118 - Clackamas County Oregon CPA Practice” to info@privatepracticetransitions.com or call 253.509.9224.

Highly Efficient Bellevue CPA Practice: Private Practice Transitions is assisting a client, located in Bellevue, Washington with the sale of a thriving CPA business. The firm’s service by revenue breakdown is 100% Income Tax Preparation and Planning Services. The firm filed 336 tax returns in 2019 for both businesses and individuals.

The firm is owner operator and has extremely low overhead with 2019 Seller’s Discretionary Earnings at almost 82% of gross revenue. The owner is willing to stay on for up to one tax season to assist with the transition to new ownership, if desired. For more information email “Listing #1121 - Highly Efficient Bellevue CPA Practice” to info@privatepracticetransitions.com or call 253.509.9224.

Eastern Washington CPA Practice: Private Practice Transitions is assisting a client, located in Eastern Washington with the sale of a busy tax and accounting practice. Tax preparation accounts for about 72% of the firm’s business and 28% comes from accounting services. The firm was established in the 1980’s, has over 600 active clients and has an excellent reputation in the community. The firm employs four staff, including the owner, in a fully furnished office.

With average gross revenues of $458,000 the last three years (2017-2019), you don’t want to miss out on this amazing opportunity. Email “Listing #1115 – Eastern Washington CPA Practice” to info@privatepracticetransitions.com or call 253.509.9224.

Established Seattle CPA Practice: Private Practice Transitions is assisting a client, located in Seattle, Washington with the sale of a busy CPA firm. The firm’s service by revenue breakdown is 100% Income Tax Preparation and Planning Services. The firm filed over 350 tax returns in 2019 for both businesses and individuals

and has three staff, including the owner. The firm is completely turn-key and ready for new ownership. The owner is willing to stay on for up to one year to assist with the transition to new ownership. For more information email “Listing #1114 - Established Seattle CPA Practice” to info@privatepracticetransitions.com or call 253.509.9224.

Highly Profitable Oregon Tax Practice: Private Practice Transitions is assisting a client in Washington County, Oregon with the sale of a highly profitable, turn-key, private tax practice.

The service breakdown is 72% Tax Preparation & Planning, 25% Accounting and Write-up, and 3% Other. In 2019, the Practice brought in over $1.1 Million in gross receipts and has approximately 550 active clients as of July 2020. The Practice has shown consistent YoY growth each of the last three years, is well known in the community for providing the highest level of customer service and employs nine (9) staff including the owners.

Email "Listing #1113 – Highly Profitable Oregon Tax Practice" to info@privatepracticetransitions. com or call 253.509.9224 to learn more.

Profitable West Seattle Tax Practice: Private Practice Transitions is assisting a client, located in West Seattle, with the sale of a busy tax and bookkeeping firm. The firm’s service by revenue breakdown is 95% Tax Preparation, 4% Bookkeeping and Ancillary Services, and 1% Other. The firm has over 1,400 active clients and is completely turn-key and ready for new ownership. The firm is centrally located in a well-established, thriving market, and is poised for explosive growth.

With average gross revenues over $350,000 in 2018, you don’t want to miss out on this great opportunity. Email info@privatepracticetransitions. com or call 253.509.9224.

Get Confidential Feedback on Your Financial Statements The WSCPA Financial Statement Review Committee will review redacted financial statements submitted by WSCPA members, provide written comments and suggestions for changes or improvements. Learn more and submit statements at wscpa.org/fsr

STATEMENT OF OWNERSHIP, MANAGEMENT, AND CIRCULATION (REQUIRED BY 39 U.S.C. 3685) 1. Publication Title: The Washington CPA 2. Publication No.: 0000-9754 3. Filing Date: 29 September 2020 4. Issue Frequency: Quarterly 5. No. of Issues Published Annually: 4 6. Annual Subscription Price: $12 7. Complete Mailing Address of Known Office of Publication: 902 140th Avenue NE, Bellevue, Washington 980053480 Contact Person: Jeanette Kebede, Telephone: 425.586.1120 8. Complete Mailing Address of Headquarters or General Business Office of Publisher: Same as #7 9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor: Publisher: Washington Society of Certified Public Accountants, Editor: Jeanette Kebede, Managing Editor: n/a, Washington Society of Certified Public Accountants, 902 140th Avenue NE, Bellevue, WA 98005-3480 10.

Owner: Washington Society of Certified Public Accountants, 902 140th Avenue NE, Bellevue, WA 98005-3480 11. Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages, or Other Securities: None 12. Tax Status Has Not Changed During Preceding 12 Months 13. Publication Name: The Washington CPA 14. Issue Date for Circulation Data Below: 07/24/2020 15. Extent and Nature of Circulation (Avg. No. Copies Each Issue During Preceding 12 Months, Actual No. Copies of Single Issue Published Nearest to Filing Date). a. Total No. Copies (Net press run): 7,143, 7,325. b. Paid Circulation (By Mail and Outside the Mail): (1) Mailed Outside-County Paid Subscriptions Stated on PS Form 3541: 3,755, 3,979.

(2) Mailed In-County Subscriptions Stated on PS Form 3541: 3,153, 3,146. (3) Paid Distribution Outside the Mail Including Sales through Dealers and Carriers, Street Vendors, Counter Sales, and Other Paid Distribution Outside USPS: 0, 0. (4) Paid Distribution by Other Classes of Mail Through the USPS (e.g., First-Class Mail®): 0, 0 c. Total Paid Distribution [Sum of 15b (1), (2), (3) and (4)]: 6,908, 7,125. d. Free or Nominal Rate Distribution (By Mail and Outside the Mail): (1) Free or Nominal Rate Outside-County Copies included on PS Form 3541: 37, 33 (2) Free or Nominal Rate In-County Copies included on PS Form 3541: 0, 0. (3) Free or Nominal Rate Copies Mailed at Other Classes Mailed Through the USPS: 22, 28. (4) Free or Nominal Rate Distribution Outside the Mail: 35, 0. e. Total Free or Nominal Rate Distribution (Sum of 15c and 15e): 94, 61. f. Total Distribution (Sum of 15c and e): 7,002, 7,186. g. Copies not Distributed: 141, 139. h. Total (Sum of 15f and g): 7,143, 7,325. i. Percent Paid: 98.66%, 99.15%. 16. Electronic Copy Circulation n/a 17. Publication of Statement of Ownership If the publication is a general publication, publication of this statement is required. Will be printed in the 10/23/2020 issue of this publication. 18. Signature and Title of Editor, Publisher, Business Manager, or Owner: Jeanette Kebede, Editor, Date 9/29/2020

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The Washington CPA Fall 2020

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Ferry t

o Whid

bey Is

land

g l Flemin of: Danie courtesy Photos

ers

ek Rail Rid

Vance Cre

VANCE CREEK RAILRIDERS Daniel Fleming

Membership Administrator

My quaran-team and I recently enjoyed a 13 mile round trip excursion on an old train track that winds along the Goldsborough Creek in a lush timbered forest atop a 4 person cart.

After a pleasant drive from Seattle to Shelton, we arrived at “Camp 1." The guides gave us a brief explanation of the carts, how they operate (pedal power!), and off we went!

The first leg is primarily level with sections having a mild decline (save your energy! Those declines become inclines on the return trip). We pedaled through beautiful greenery, across bridges, and made a quick jaunt across an old RR crossing.

Each cart is equipped with a hydraulic hand break which allowed us to easily slow down and enjoy the scenery. We got up to about 10 miles per hour at our fastest. Flying down the declines, bouncing along with nothing but the

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wind in our hair and the ground rushing beneath us, it was exhilarating!

At the 6.5 mile marker, the guides had everyone hop off the carts. We had a chance to stretch our legs, eat some snacks, and rehydrate while the guides turned the carts around. The return trip, while traveling the same track, offered a different perspective and was just as enjoyable, all be it more physically taxing. Those declines that were so fun to coast down now demanded some leg pumping exercise. We chanted in rhythm to the pedaling, propelling us up the inclines. We'd then laugh at our ridiculousness as we pedaled with much greater ease along the even sections.

TREEHOUSE POINT & SNOQUALMIE FALLS Hayden Williams

Chief Financial Officer

Book a stay at TreeHouse Point — home to six rentable treehouses — near Issaquah!

You can spend the night or set up a tour in advance. Take camping to the next level.

If you're in the area, you can also stop by Snoqualmie Falls.

About two hours after setting out, we arrived back at “Camp 1” and disembarked. The four of us with lighter spirits, sun-kissed skin, and bug-stained teeth (true story)!

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WSCPA STAFF PICKS WHIDBEY ISLAND Roo Mulligan

Manager of Membership Engagement

Photos courtesy of: Roo Mulligan

My daughter and I took the ferry to Whidbey Island. You can get out of your car on the ferry if you want and stand outside. We got lucky with our car on the second level side of the boat so we had our own "private window". We drove north on Whidbey towards Coupeville and stopped at Greenbank Farms. They have a pie shop, a wine shop, cheese shop, and lots of open trails that are also a dog park so you can bring your dog to run around if you want to.

We went into Coupeville and had delicious Caprese sandwiches at Ciao. Ciao is a deli-style Italian restaurant that also sells wines and pasta in their little shop. They have a patio with outdoor seating and umbrellas to cover you from the sun.

AFTERNOON AT A PUMPKIN PATCH Monette Anderson

Carleton F

arms in La

ke Stevens,

WA

Photos cour tesy

of: Monette Anderson

Director of Membership

Our family pumpkin patch trip is one of the events I most look forward to every year. This year, my requirements around family activities revolve around safety, and that usually means the ability to stay outdoors in well-ventilated areas.

While our state has a plethora of family pumpkin farms with limitless outdoor recreation activities, Carleton Farms has become a favorite of ours.

• • • • • • •

Corn Maze. Check.

Tractor rides. Check.

Pumpkin cannon. Check.

Spacious kids' playground complete with zip lines.

Check.

Farm animals. Check.

Food stand serving up seasonal favorites like warm pumpkin donuts and apple cider. Check.

Great family photo opps. Check and Check.

An added bonus at Carleton Farms is the family market where you can find lots of pickled goods from homemade salsas, jams, pickles, olives and our personal family favorite: candied jalapenos. Take a self-care PTO day and go during the week to avoid crowds. This year, we may go more than once!

Other Great Pumpkin Patches

SOUTHERN WASHINGTON ROAD TRIP

Carver Farms, Spokane Middleton Six Sons Farms, Pasco

Country Cousins Farm, Othello Joe's Place Farms, Vancouver

Suzette Rangel

Manager of Conferences & Special Events

I make an annual trek to go swimming and kayaking in the Columbia River near Vantage. There are several camping sights in that area hosted by Grant PUD. The campgrounds are less traveled and are well kept. They are all at riverside and you can catch the most spectacular sunsets. When nightfall arrives the sound of the river waves crashing at shore and the brightest stars appear.

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For folks like me who love to learn about the geographical history of the area, the Ginkgo Petrified Forest early morning hike is amazing. You can see for miles the beauty of the desert.

During harvest time, I enjoy heading over to Benton City and up state highway 224 to visit the wineries and get a first taste of their new wine.

When I go to the Tri-Cities, I tour the LIGO Hanford Observatory, a gravitational wave research center. I also check out the REACH Museum in the Tri-Cities to see exhibits from when that area was covered in ocean. My top places to eat are mostly for novelty sake. Atomic Ale has good pizza, beer, spudnuts — potato flour donuts. Yummy!

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WSCPA STAFF PICKS

PATIO GLOW-UP Brian Reid

Membership Outreach Coordinator

Photos C ourtesy of Brian Reid

We have strategically invested what would've/could've been vacation cash into home decor cash! Projects started back in May, and we got all new tableware, complete with flower vases and new table runners. Next we potted plants out on the patio and that was an all-family event. We then bought new rugs and that brightened up the space entirely.

Uns plas h/K ara Ead s

OUTDOOR MOVIE NIGHT Hayden Williams

Chief Financial Officer

Have an outdoor theater experience! Use a data projector to project a movie onto the side of your house or a white sheet hung up like a movie screen.

Pop some popcorn and grab some treats. Kids will definitely remember that evening.

Kaitlin Brake

Communications Design & Marketing Coordinator

My friends, family, and I have re-purposed our travel funds to explore some new hobbies.

Some of our exciting new purchases include: • Roller-skates • Kayaks • House Plants • Painting & Drawing Supplies • Bicycles

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The Washington CPA Fall 2020

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Background Graphics: © iStock/AndreaAstes/Veronika Oliinyk/pop_jop

EXPLORE NEW HOBBIES

Photo: © Uns plash/ Quinto n Coetz ee

Pho to: ©

Photo: © iStock/vga jic

anning /Taryn M Unsplash Photo: ©

The kids loved potting the patio flowers, so my next activity will be potting indoor plants in tiny pots for spaces throughout the apartment. All-in-all, the money we spent on home decor and plants has paid off nicely, and by rotating plants it made it feel as if we went away every week.

Periodicals postage paid at Bellevue WA and additional mailing offices 902 140th Ave NE Bellevue WA 98005-3480

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