LEADERSHIP LENS
So Many Great People, So Little Time By Tom G. Donaghy, WSCPA Chair for 2017-18
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s my year as Board Chair comes to a close, I am honored to have had the opportunity to serve such an amazing organization. This has been a very busy year, with a new CEO who took charge immediately and developed a challenging new strategic plan with the help of numerous Society members, professional consultants, immediate staff, and current board members. The goal of this significant exercise was to focus on what’s working within the organization, improve on those areas that needed attention, and venture outside the box to encourage diversification and growth of membership. The end result: to offer innovative products and services to better serve you, our valued members. I feel strongly that the direction for the future is on target. (See page 4 for an overview of the new strategic plan and watch for more details in the summer issue of this publication.) The best part of my job this past year was the opportunity to engage with some of the most talented, intelligent, and professional CPAs, in particular – the directors on the Board. What an honor it has been to work with them. We had a successful year because I did my best to get out of their way. It will be sad to have some truly great people roll off the board at the end of May. However, I am encouraged by the new crop that came on board last year and the new slate of directors for next year is equally impressive. (Learn about the slate of board nominees on page 14.) Before I “retire” as Board Chair, I thought it would be appropriate, as a financial investment advisor, to share my two cents regarding a couple of well written articles from the February 2018 issue of the Journal of Accountancy entitled “Retirement.” As described in “Help small businesses choose the right employee retirement plans,” it certainly is a tremendous ser-
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WashingtonCPA Spring 2018
vice to the client helping them figure out which type of retirement plan suits their business needs. However, that is only half the battle. Guiding them through the plan acquisition process is extremely important as well. Let’s take 401(k) plans for example. The 401(k) plan is a very popular retirement plan for companies of all sizes and there are numerous plan vendors out there chomping at the bit to get you into their product. Shopping for the right 401(k) plan and Third Party Administrator (TPA) service can be a daunting task. The biggest complaint that business owners have regarding retirement plans is the low quality level of service they are receiving from either the plan providers or their TPAs. Do your research; there are ways to verify the quality of service provided by plan vendors. Also, look at all the costs inherent in each plan. Plan costs are very important, especially now that employees are questioning how much their company’s plans are really costing them. Helping the client through not only the plan type selection process, but the plan acquisition process as well, can help you solidify your “hero” or “heroine” status. Turning to the second article, “Help clients balance retirement and education planning,” I wanted to add two things to the valuable points in this article. Since college costs have skyrocketed over the years, I recommend trying to employ the services of good old grandma and grandpa. Most grandparents enjoy going overboard for their grandchildren and would enthusiastically support the opportunity to be part of helping their kids and grandkids defray the soaring costs of higher education. 529 plans offer a great way to save, while allowing grandparents to keep control over the invested assets. Another tactic to lower the cost of college is to recommend clients find a mentor for their high school age students. It is highly advantageous
for parents to connect their child with a trusted, successful local businessperson or professional as a mentor throughout their high school years to explore career interests. Having an established and solid path already in place as they begin college can eliminate the cost of changing majors and misdirection. Kids do not always listen to their parents, but they may be more likely to listen to someone successful in their community. I have had the opportunity to serve as a mentor to many students who showed an interest in accounting. Guiding kids to a successful future in accounting or, for that matter, any profession is very rewarding. So now, I get to finally say goodbye and thank you for an amazing year. You are a part of a tremendous organization that is all about supporting you, its members, through all of the terrific programs they have to offer. Let’s not forget the advocacy portion of the services provided. Make no mistake about it; they truly have your back. The involvement and support that you give to this outstanding organization will not go unnoticed or unrewarded. Thanks again for a great year and I hope to see many of you in the coming years. Wishing you great success in your careers. Respectfully yours, Thomas G. Donaghy Tom Donaghy, CPA, is an investment officer and financial advisor in Bellingham, Washington. You can contact him at tg.donaghy1@gmail.com
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