Archive for the ‘News’ Category

Tuesday, May 16th, 2017

Can This Be A CPA Firm?

“We are trying to change this old culture to try to sustain our profession for the future.” – Bernie Ackerman, CPA

Quite a few years ago I met Bernie Ackerman and his son, Jason at an AICPA conference. For several years, we would meet-up and talk about their firm, current topics, other firms and the profession, in general.

BernieBernie and Jason have always been, to me, a great two-generational team that had a firm grasp on what they could do to take their firm, BNA, into the future.

Recently, they were featured in the Journal of Accountancy for the very innovative things they were doing. The title: BNA: A Completely Flat Hierarchy.

As the article notes, you might think they were a tech start-up because staffers set their own working hours and never touch a time sheet. All employees get their own offices, starting on day one. There is no path to partner because there are no partners!

While their practices are very unusual in the profession, they are Jasonpaying off in term of recruitment. Jason Ackerman reports that they receive 10 to 15 resumes a week, even when they are not hiring!

Follow the links above to read the article and to visit their website.

I hope this inspires you to create a great culture and a future for your firm.

 

  • The best way to predict your future is to create it.
  • Abraham Lincoln

Friday, April 28th, 2017

“For happiness one needs security, but joy can spring like a flower even from the cliffs of despair.” – Anne Morrow Lindbergh

Because of all the concerns about cybersecurity and the opportunity that it provides for CPAs to provide cybersecurity-related assurance services, I wanted to share a press release from the AICPA this week.

AICPA Unveils Cybersecurity Risk Management Reporting Framework

Voluntary Engagement Will Help Companies and Auditors Communicate Cyber Risk Readiness

NEW YORK (April 26, 2017) – At a time when organizations around the world are facing cybersecurity attacks, it is more important than ever for them to demonstrate to key stakeholders the extent and effectiveness of their cybersecurity risk management efforts. To help businesses meet this growing challenge, the American Institute of CPAs (AICPA) has introduced a market-driven, flexible and voluntary cybersecurity risk management reporting framework.

“Cybersecurity threats are escalating, thereby unnerving boards of directors, managers, investors and customers of businesses of all sizes – whether public or private,” said Susan S. Coffey, CPA, CGMA, AICPA executive vice president for public practice. “While there are many methods, controls and frameworks for developing cybersecurity risk management programs, until now there hasn’t been a common language for companies to communicate about, and report on, these efforts.”

The AICPA’s new framework will enable all organizations – in industries worldwide – to take a proactive and agile approach to cybersecurity risk management and to communicate on those activities with stakeholders. Two resources that support reporting under the framework are being released today:

  • Description criteria – For use by management in explaining its cybersecurity risk management program in a consistent manner and for use by CPAs to report on management’s description.
  • Control criteria – Used by CPAs providing advisory or attestation services to evaluate and report on the effectiveness of the controls within a client’s program.

A third resource for CPAs will be available in May:

  • Attest guide – This guidance, Reporting on an Entity’s Cybersecurity Risk Management Program and Controls, will be published next month to assist CPAs engaged to examine and report on an entity’s cybersecurity risk management program.

Building on CPAs’ experience in auditing information technology controls, the AICPA’s Assurance Services Executive Committee identified the emerging need for cybersecurity-related assurance services. The goal was to enable companies to more effectively communicate the robustness of their cybersecurity risk management programs to key stakeholders.

“The framework we have developed will serve as a critical step to enabling a consistent, market-based mechanism for companies worldwide to explain how they’re managing cybersecurity risk,” Coffey explained. “We believe investors, boards, audit committees and business partners will see tremendous value in gaining a better understanding of organizations’ cybersecurity risk management efforts. That information, combined with the CPA’s opinion on the effectiveness of management’s efforts, will increase stakeholders’ confidence in organizations’ due care and diligence in managing cybersecurity risk.”

For more information and links to valuable resources for CPAs providing cybersecurity advisory and assurance services, visit our Cybersecurity Resource Center.

  • Man maintains his balance, poise, and sense of security only as he is moving forward.
  • Maxwell Maltz

Thursday, April 27th, 2017

Interesting Topics From The New Horizon Group Meeting

marc-rosenberg-2017“When you are in the news business, you always expect the unexpected.” – Helen Thomas

Earlier this month, I blogged about attending the New Horizon Group of CPA firm consultants’ annual meeting. It was held at the AICPA offices in New York.

This year I attended virtually (and it worked really well). Members are: Jim Bourke, Gale Crosley, Chris Frederiksen, Carl George, Angie Grissom, Rita Keller, Roman Kepczyk, Allan Koltin, Mark Koziel, Rob Nixon, Darren Root, Marc Rosenberg and Jennifer Wilson. Barry Melancon graciously gave us a briefing.

This week, Marc Rosenberg blogged about some “pearls of wisdom” obtained from that meeting. Be sure to read Rosenberg’s post here. Some significant changes are unfolding.

  • In the case of news, we should always wait for the sacrament of confirmation.
  • Voltaire

Wednesday, April 19th, 2017

Virtual Employees Made Easier

“Any sufficiently advanced technology is equivalent to magic.” – Arthur C. Clarke

In case you missed it, I wanted give you a link to an article in the latest issue of Accounting Today – Rise of the robot. It’s pretty cool.

We have been talking about remote and virtual employees and how to deal with them for several years now. Things continually evolve and firms are learning how to manage the ever-changing world of employee engagement and retention.

beam_pro_sizedOne firm, Navolio & Tallman featured in the article, is now using a machine called the Beam mobile presence system as their mobile conference set-up for individuals working virtually.

Think of the episode of Big Bang where Sheldon wants to protect his body from the hazards of the world and begins using a virtual presence machine.

Check out the article and the pictures. It also proves that you don’t have to be a humongous firm to do some very creative things. N&T has 3 partners and 18 people.

The firm’s work-from-home culture is thriving. They have a compressed work week, after April 15. Employees work 9 hours a day Monday through Thursday, and work from home Friday with the day ending at noon. During tax season, staff members do work on Saturdays, but they can do that from home as well.

I believe the best message for retaining top talent is simple. Invest in technology.

 

  • It has become appallingly obvious that our technology has exceeded our humanity.
  • Albert Einstein

Thursday, April 13th, 2017

The Next Generation of the CPA Exam

“Success is no accident It is hard work, perseverance, learning, studying, sacrifice and most of all, love os what you are doing or learning to do.” – Pele

I just received a press release about the new Exam.

AICPA_ThisWayToCPA_logo_WEB-1jl846vNational Association of State Boards of Accountancy (NASBA) and Prometric are pleased to announce the successful launch of an updated version of the Uniform CPA Examination.

The next generation Exam, which began testing on April 1, has added additional assessment of higher-order cognitive skills that test a candidate’s critical thinking, problem solving and analytical ability. The Exam also makes greater use of task-based simulations (TBSs) as a means of assessing these higher-order skills. Recent research confirms that CPAs are now performing tasks that rely upon these skills earlier in their careers.

Follow this link to read the press release and the most important changes to the CPA Exam.

  • That is the exploration that awaits you! Not mapping stars and studying nebula, but charting the unknown possibilities of existence.
  • Leonard Nimoy

Tuesday, April 4th, 2017

Blockchain

“The aim of argument, or of discussion, should not be victory, but progress.” – Joseph Joubert

Rarely do I miss a day posting on this blog. However, yesterday was one of those days and I apologize – BUT I had a great reason. I was attending (virtually) the annual New Horizon Group of consultants to the CPA profession meeting. The meeting was held at the AICPA offices in NYC, hosted by Mark Koziel. The co-chairs of this years meeting were Carl George and Jennifer Wilson.

Other members (who I am so honored to be affiliated with) are: Roman Kepczyk, Allan Koltin, Gale Crosley, Angie Grissom, Jim Bourke, Chris Frederiksen, Rob Nixon, Darren Root and Marc Rosenberg.

An important discussion topic was Blockchain and how it will affect the future of auditing. Honestly, it sounds like it will affect the future of many things.

My point today is for you, as a CPA practitioner or non-CPA in a firm leadership position, to take the time to learn about blockchain. I must admit, I didn’t have a clear understanding of it until yesterday.

Below, I am furnishing you a link to a great article (via Accounting Today) that will help you learn more about blockchain. It is critical for you to educate yourself and your team – it is a huge change and it is coming about quickly – you can’t wait and think it is something to worry about 10 years from now.

Blockchain is defined as an open, distributed ledger, blockchain technology records and verifies transactions without any trusted central authority.  Read more…..

  • Frequently the more trifling the subject, the more animated and protracted the discussion.
  • Franklin Pierce

Wednesday, March 15th, 2017

2017 Accounting Today Top 100 Firms

Dan Hood, Accounting Today

Dan Hood, Accounting Today

“There are lies, damned lies and statistics.” – Mark Twain

Those of us working in, or affiliated with, the world of public accounting are always interested in the performance of CPA firms across the country. What are they doing that we could do? How do their numbers look compared to ours? What new trends should we be aware of?

That’s why I wanted to share a link to a podcast from Dan Hood, Editor In Chief of Accounting Today. Their annual ranking of leading firms in the profession offers up a host of insights and secrets; in this podcast, Hood shares some of the most interesting, such as, over-all growth in revenue was 8.8%

If you don’t have time, right now, to listen to the entire 13 minute podcast, bookmark this page and take time over the weekend (or after mid-April) to listen and learn.

Here a link to the podcast, A Deep Dive Into The Top 100 Firms.

  • It is the mark of a truly intelligent person to be moved by statistics.
  • George Bernard Shaw

Tuesday, March 14th, 2017

Practice Management Software

“The perfect is the enemy of the good.” – Voltaire

I often receive questions about the pros and cons of practice management software. Which one should we be using? Is one better than the rest? What’s the best one for a small firm? What’s the best one for a large firm?

Recently, Accounting Today published A Comparison Guide To Vendors’ Offerings.

Per the article accompanying the Guide…. Looking at the accompanying comparison chart, you will notice that different vendors have taken very different approaches with their application. That’s a good thing, as it offers a wider variety of capabilities that will hopefully sync up with your firm’s needs without providing lots of unneeded functionality.

You will find the article here and from it you can access the Comparison Guide.

  • No matter how great the talent or efforts, some things just take time. You can't produce a baby in one month by getting nine women pregnant.
  • Warren Buffett

Wednesday, March 1st, 2017

If You Still Don’t Think Things Are Rapidly Changing – Take a Look at TALK

“It’s the little details that are vital. Little things make big things happen.” – John Wooden

Think about it. Things that used to take you hours and hours to complete can now be mastered in a matter of minutes. The CPA’s most important tool is technology.

I shudder because I still interact with some practitioners who are not even PAPERLESS! They still cannot review a tax return ON SCREEN!

Talk_logo_bright_green-07663d94ffbd16b53ca1e60cd21c721aLast week I received information about a new app called TALK. TALK can now do the books for a business owner – you should pay attention to this – for no other reason than to realize that change is coming very fast. To put it briefly, your client could talk to the app and it would do the bookkeeping.

Here’s the press release and below is a link to the website where you can watch a short video.

22 Million Small Business Owners and Sales People Struggle With
Bookkeeping and Mileage Tracking.  It Stops Today.

If you can take a picture of a receipt or sales order and talk into your phone, TALK does your books.

TALK Accounting of Tucson announced a new phone app today that lets anyone, regardless of their accounting skills, to stop worrying about bookkeeping or tax deductions.  

Founder KC Truby says “Because of new voice recognition and artificial intelligence, the process is 10- second simple. The app codes, verifies and post your transactions right into a spreadsheet, QuickBooks or other software.”

To assure accuracy TALK automatically double checks the transaction against your current list of customers, vendors and deductions, right before your eyes.  No more receipts.  No more lost deductions.  No more worries about IRS questions.

What if you forget to TALK in a credit card charge?  No problem.  TALK has partnered with Finicity to review all your credit and debit transactions daily. KC says “if we see you forgot to TALK about something, we’ll send you a notification at the end of the day asking for the missing details, long before you forget.”

Tax returns made easy.  When you get a 1099 or other critical documents in the mail just take a picture and talk about it.  The documents are stored online – ready for your accountant.  No more ‘all-nighters’ on April 15th looking for lost documents. 

IRS ready mileage logs, automatically. TALK has also partnered with Automatic.com to intercept a GPS recording of where your car has been. This is data directly from the vehicle without draining your phone’s battery. After a trip, TALK will quietly ask if you’d like to include a business purpose for the miles driven. Just answer the question in one sentence and you have an IRS ‘bomb proof’ log ready for expense reports or tax returns. 

No learning curve. TALK has teamed up with Fujitsu’s ScanSnap scanner for 1 button push to upload documents whenever needed from a scanner. On the app side, the artificial intelligence codes your transactions for you – that means you don’t need accounting skills, just follow the app’s instructions and you’re left with rock-solid books.

Here’s a link to more information on the TALK site. Be sure to watch the short video at the top of the page.

 

  • Never neglect details. When everyone's mind is dulled or distracted the leader must be doubly vigilant.
  • Colin Powell

Monday, February 27th, 2017

If You Like My Blog – I Hope You Will Vote

“A vote is like a rifle; its usefulness depends upon the character of the user.” – Theodore Roosevelt

I try to write helpful blog posts for the CPA profession. As most of you know, I have been writing daily for eleven years.

This year my blog has been selected as one of the 50 finalists by WalletHub. They are now seeking votes from readers to determine the BEST blogs being written for tax professionals.

Here’s where you vote – I’m #30:

https://wallethub.com/blog/best-tax-blogs/32604/

I hope you will vote and share the link with others who would be willing to vote for my blog.

It’s Monday, so think positive, get a lot done this week, keep your sense of humor and have fun.

  • Good, better, best. Never let it rest until your good is better and your better is best.
  • St. Jerome