Archive for the ‘AICPA’ Category

Tuesday, October 29th, 2019

Digital CPA

“The majority of meetings should be discussions that lead to decisions.” – Patrick Lencioni

Here’s the press release from the AICPA about the upcoming Digital CPA conference. Digital CPA is the leading conference for practitioners curious about technology and its impact on the accounting landscape. Together we’re challenging business models, transforming practice areas and driving innovation across the profession.

CPA.com Announces 2019 Digital CPA Conference Keynote Lineup

Innovation Futurists and Leadership Experts Offer Insights at Dec. 9-11 Event

NEW YORK (Oct. 23, 2019) – Innovation is reshaping the traditional areas of practice in the accounting profession, and CPAs who want to position their firms for success can gain the latest intelligence and insights about this shift at the 2019 Digital CPA Conference, sponsored by the American Institute of CPAs and its technology arm, CPA.com.

This year’s conference will be held just outside Seattle at the Hyatt Regency in Bellevue, Wash. The Dec. 9-11 event is organized around the theme “Age of Innovation,” and includes sessions on the shift to advisory services across all core areas of the CPA firm, such as audit and assurance, tax, and accounting services.

Keynote speakers at the event include:

  • Lisa Bodell, founder, and CEO of FutureThink, a global consulting firm that helps companies eliminate red tape and busy work and adopt simplicity as an operating model to unleash innovation.
  • Pascal Finette, chair of Open Innovation and Entrepreneurship at Singularity University and co-founder of radical Ventures, a firm that takes the long view on the impact of technological change. Pascal will share insights and future trend predictions from his year-long collaboration with CPA.com in a program called “Navigating the Future,” which is designed to help CPA firms prepare and prosper from exponential change.
  • Steven Robbins, founder of S. L. Robbins and Associates, a firm that studies human behavior, who will talk about how inclusion, leadership and the “power of caring” are key drivers of productivity and innovation.

Further rounding out the speaker lineup are Barry C. Melancon, CPA, CGMA, president and CEO of the American Institute of CPAs, will provide a professional issues update, and Erik Asgeirsson, president and CEO of CPA.com, will give a “state of the union” on Digital CPA trends.

The Digital CPA Conference is designed for CPA firm partners, managers and, staffers responsible for rolling out cloud solutions, and business development, firm marketing and human resources directors within firms.

Reporters interested in covering the event can apply for on-site press credentials or arrange for online access to live broadcasts. Members of the media can contact Jeff May, jeffrey.may@aicpa-cima.com, for more details.

For more information about the conference, please visit digitalcpa.com.

  • Learning is not attained by chance, it must be sought for with ardor and attended to with diligence.
  • Abigail Adams

Monday, October 7th, 2019

National Tax Conference – FYI

“It’s income tax time again, Americans: time to gather up those receipts, get out those tax forms, sharpen up that pencil, and stab yourself in the aorta.” – Dave Barry

The quote above is for those of you preparing extended 1040s!

Here’s a press release from the AICPA:

SAVE THE DATE: AICPA National Tax Conference

Washington, D.C. (October 3, 2019) – This November, the American Institute of CPA

s (AICPA) will host its annual National Tax Conference. Press registration includes access both online and in-person access. Please mark your calendars.

WHAT:            2019 AICPA National Tax Conference

WHEN:            November 13-14, 2019                                                          

WHERE:         The Marriott Marquis, Washington, D.C.

INVITED:                   

  • Charles Rettig, IRS Commissioner
  • Michael Desmond, IRS Chief Counsel
  • Rochelle Hodes, Washington National Tax Office Crowe, LLP
  • Tony Nitti, Partner, RubinBrown LLP

TOPICS INCLUDE:

  •  Using Machine Learning to Predict Outcomes in Tax Law
  •  Treasury and the TCJA
  •  Small Business Exceptions and the Tax Shelter
  •  Lessons Learned from the 1st Year of Filing After TCJA                             

CONFERENCE SCHEDULE: Current information about speakers and conference topics including full agenda may be found here

 

Note: AICPA Fall Tax Division Meeting will take place at the Marriott Marquis on November 15th. These meetings are open to the press but not accessible via the internet.

 

  • I'm proud to pay taxes in the United States; the only thing is, I could be just as proud for half the money.
  • Arthur Godfrey

Tuesday, October 1st, 2019

PCPS 2019 Top Issues

“If your only tool is a hammer then every problem looks like a nail.” – Abraham Maslow

I should have shared these sooner. 2019 is passing by too quickly.

How does your firm line-up? Hopefully, you have addressed some of these issues this summer.

2019 PCPS Top Issues

Sole Practitioners

  1. Keeping up with changes and complexity of tax laws
  2. Managing privacy / security risks
  3. Keeping up with changes in technology & managing associated costs
  4. Technical training of owners / partners and staff
  5. Seasonality / workload compression

2 – 5 Professionals

  1. Finding qualified staff
  2. Keeping up with changes and complexity of tax laws
  3. Managing privacy / security risks
  4. Seasonality / workload compression
  5. Developing & executing a succession plan

6 – 10 Professionals

  1. Finding qualified staff
  2. Keeping up with changes and complexity of tax laws
  3. Seasonality / workload compression
  4. Managing privacy / security risks
  5. Developing & executing a succession plan

11 – 20 Professionals

  1. Finding qualified staff
  2. Keeping up with changes and complexity of tax laws
  3. Seasonality / workload compression
  4. Retaining qualified staff
  5. Managing Privacy / security tisks

21+ Professionals

  1. Finding qualified staff
  2. Retaining qualified staff
  3. Managing work/life balance initiatives
  4. Owner / Partner accountability & unity
  5. Seasonality / workload compression & Managing privacy/security risks

 

  • There's no use talking about the problem unless you talk about the solution.
  • Betty Williams

Tuesday, September 3rd, 2019

Changes in Hiring and in Technology

“Every business is having to transform today, no matter the size,” Melancon explained. “It’s up to us to transform to meet those expectations.” – Barry Melancon, CEO AICPA

Unless you have been living under a rock, you have noticed that the future of the CPA profession means if you haven’t refocused your practice on consulting you won’t be successful in the future.

I don’t really believe that the move to significantly more consulting is happening (or will happen) as rapidly as the leaders of the profession predict. From my years of experience with CPAs, the majority always proceed with caution.

It is true that public accounting firms are hiring more non-CPAs and that is a current trend that will definitely continue. These non-CPAs will bring more consulting opportunities and skills into firms.

The current pyramid model in most firms will move to more of a diamond shape. The base-level tasks will be automated or outsourced. The middle level of experts an consultants will grow and the ownership group, at the top of the diamond, will still be the smaller elite.

A different kind of hiring is just one change. Another major change lies in technology. Firm leaders must be willing to invest more than ever in technology. They must also invest time in learning and relearning to keep pace with the technology available.

Read more about all this in this informative article by Danielle Lee via Accounting Today.

 

  • The ability to learn will be one of the most important skills for accountants going forward.
  • Barry Melancon

Thursday, August 22nd, 2019

The Hiring Model Has Shifted For CPA Firms

“Out of your vulnerabilities will come your strength.” – Sigmund Freud

The following is a press release I received from the AICPA. It is much longer than my normal post but I think it is important for firm leaders to read. Read it, then think about it and begin making plans.

Public Accounting Firm Hiring Model Shifts: AICPA ‘Trends Report’

  • Undergraduate accounting enrollments were second highest on record in 2017-2018
  • AICPA is working with key stakeholders on programs to strengthen pipeline of talent entering the profession

NEW YORK (Aug. 12, 2019) – Rapid advances in technology continue to impact the accounting profession. As CPA firms shift their hiring models to focus more on technology skills, non-accounting graduates now comprise 31 percent of all new graduate hires in public accounting. That’s an increase of 11 percentage points from 2016 to 2018, according to the “2019 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits,” released today by the AICPA.

The biennial report, published since 1971, provides statistical projections and expectations based upon university responses for the 2017-2018 academic year and firm responses for the 2018 calendar year. This data provides a snapshot of the profession, set against the current economy, and the ability to forecast future trends.

“Increased demand for technology skills is shifting the accounting firm hiring model. This is leading to more non-accounting graduates being hired, particularly in the audit function,” said Barry Melancon, CPA, CGMA, AICPA president and CEO, and CEO of the Association of International Certified Professional Accountants. “CPAs have an unmatched reputation for trust and integrity, earned through decades of working in the public interest. However, to play this vital role in the future will require an increased focus on technology.  It is incumbent upon the profession to ensure accounting graduates and newly licensed CPAs have these skills and expertise needed to support the evolution of the audit.”

One of the ways AICPA is seeking to address this trend is through the CPA Evolution project, in partnership with the National Association of State Boards of Accountancy. This project strives to ensure that CPAs continue to have the competencies needed to support an accounting profession that plays a critical role in protecting the public interest.

The percentage of new accounting graduate hires assigned to audit-related work is increasing. This area now comprises 56 percent of new accounting graduate hires. That’s up four percentage points from 2016 and nine percentage points from 2014.

Overall CPA firms hired about 11 percent fewer accounting graduates in 2018 than they did in 2016, and nearly 30 percent fewer than in 2014. As firms continue to embrace technology and evolve their approach to the audit, they are seeking employees with data science and data analytics skills. They are largely filling those needs with non-accounting graduates, though there is anecdotal evidence from firms to suggest that some of this technology-specific hiring is occurring at the experienced hire level.

On the supply side, enrollments in undergraduate accounting programs stand at the second highest level on record after pulling back slightly from their all-time high in 2015-2016.

Nearly 208,000 projected students were enrolled in undergraduate accounting programs during the 2017-2018 school year, topping 200,000 for the fourth Trends report in a row. More than 33,000 projected students were enrolled in master’s programs in 2017-2018. This reflects a six percent decline from 2015-2016 but remains comfortably above any level pre-recession. Declines in graduate student enrollment is due largely to more students opting to enter the workforce in lieu of pursuing an advanced accounting degree.

There were nearly 55,000 projected bachelor’s and more than 21,000 projected master’s degrees earned in 2017-2018. This reflects a decline of four percent each from the previous report. However, the combined 76,542 degrees remains above pre-recession levels.

After a significant increase in the number of new CPA Exam candidates in 2016, largely attributed to the new version of the exam launching in 2017, the number of candidates and newly licensed CPAs in 2018 dipped to the lowest level in 10 years. CPA candidates fell 7 percent to 36,827, while newly licensed CPAs fell 6 percent to 23,941.

“The AICPA and other stakeholders in the profession are focused on anticipating the changes shaping our economy and ensuring newly licensed CPAs have the skills they need to serve as trusted advisors to their clients,” said Yvonne Hinson, CPA, CGMA, Ph.D., AICPA Academic-in-Residence, Academic & Student Engagement. “As the pace of change increases, the Institute has been accelerating our work on a number of profession-wide initiatives that attract, inspire, and engage the next generation of CPAs.”

In addition to CPA Evolution, some of these initiatives include:

  • A CPA Exam practice analysis focused on the impact of technology and the critical skills for newly licensed CPAs. An exposure draft and invitation-to-comment will be published in late December.
  • Accounting Accreditation Practitioner Engagement Program which places CPA practitioners on AACSB accounting accreditation teams and committees.
  • Accounting Doctoral Scholars Program provides funding for CPAs to obtain their doctorates and teach.
  • Accounting Program for Building the Profession trains high school educators to teach a college-level accounting class.

The Institute is working with organizations to increase the likelihood that racial and ethnic minority students consider accounting early in their career decision-making process. AICPA scholarships and programs such as the Accounting Scholars Leadership Workshop help ensure accounting students have a meaningful and successful experience as they work to earn their CPA license.

The report found that racial/ethnic diversity has increased, with the highest percentage of non-white enrollees to date. Enrollment by gender is nearly even at both the bachelor’s and master’s levels.

View the full Trends report

  • Strength and growth come only through continuous effort and struggle.
  • Napoleon Hill

Wednesday, June 12th, 2019

New Internet Domain for CPAs

Here’s a recent press release from the AICPA.

AICPA to Oversee New Internet Domain for CPAs

.CPA Will Enhance Trust and Branding of Profession in the Digital World

LAS VEGAS (June 10, 2019) –The American Institute of CPAs is in the process of being awarded the .cpa domain and is currently in a contract execution phase with the Internet’s global governing body, the Internet Corporation for Assigned Names and Numbers (ICANN). The AICPA’s role in administering .cpa will provide a defined global domain for CPAs worldwide to connect with their clients with increased trust, security, and verification.

The Internet, like most things, is evolving. ICANN is charged with developing important future drivers for connection in the digital world. As part of this mission, it has expanded the top-level domain structure to aid navigation on the Internet and support trusted and value-based entities and communities. To supplement traditional top-level domains such as .com, .edu and .org, ICANN has approved more than 1,200 specialized domain extensions – including Amazon’s .aws, Google’s launch of .app, as well as those for other well-known businesses, governments, and institutions, such as .vanguard, .barclays, .kpmg, .mlb, and .nyc.

“By overseeing the .cpa domain in collaboration with other global CPA organizations, the AICPA can help promote CPAs’ visibility and protect their professional standing online,” said Barry Melancon, CPA, CGMA, the president and CEO of the AICPA. “We also want the public to have confidence that someone using a .cpa domain address for email or a website is affiliated with the CPA profession.”

The new domain extension will be available to CPAs and their firms and will signal a clear connection to the profession. For example, Firm Name, LLC, could have a website address of www.firmname.cpa. Jane Smith, an employee at that firm, could have an email address ofjsmith@firmname.cpa.

“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 technology subsidiary. “This is why many leading companies and communities, such as Amazon, KPMG, and the banking industry are moving to restricted top-level domains. We’re looking forward to bringing this important new capability to the profession.”

More details on registering a domain name will be available later this year. For additional information and the opportunity to sign up for notifications, please visit https://domains.cpa.com

  • By overseeing the .cpa domain in collaboration with other global CPA organizations, the AICPA can help promote CPAs’ visibility and protect their professional standing online.
  • Barry Melancon

Friday, May 17th, 2019

Millennials’ Desired Workplace Benefits

From a recent AICPA survey:

  • Nearly two-thirds of young adult job seekers have student loan debt, with an average of $33,332.
  • Millennials with loan debt value more help with repayment over all other employee benefits.
  • AICPA Employee Benefits Report offers guidance on understanding and utilizing benefits.

When asked to choose the top three benefits that would most help them achieve their financial goals, young adult job seekers top two choices focused on the traditional benefits of health insurance and paid time off. Interestingly, student loan forgiveness was the third most cited option.

Young Adult Job Seekers

Benefit

Chosen in Top 3 by:

 Health Insurance

54%

 Paid Time Off

45%

 Student Loan Forgiveness

41%

 Working Remotely

38%

 401(k) Retirement Fund Match

36%

 Tuition Reimbursement

25%

 Pension

15%

 Paid Parental Leave

13%

The full results of the survey conducted by MAVY Poll on behalf of the AICPA, along with further analysis, are available in a free Employee Benefits Report on the AICPA’s 360 Degrees of Financial Literacy website.

  • All growth depends upon activity. There is no development physically or intellectually without effort, and effort means work.
  • Calvin Coolidge

Wednesday, May 15th, 2019

Be Sure To Take Part in the AICPA PCPS Top Issues Survey

“He who has no opinion of his own, but depends upon the opinion of others, is a slave.” – Friedrich Gottlieb Klopstock

There are just a few days left to weigh in on the top issues facing your firm!

Take 10 minutes for the AICPA PCPS Top Issues Survey and help set the direction for the resources they develop.

Survey closes 5.17.19 http://bit.ly/302prW6 

  • It is not truth, but opinion that can travel the world without a passport.
  • Walter Raleigh

Monday, December 17th, 2018

Digital Client Advisory Services Roadmap Workshop

“Opportunity does not knock, it presents itself when you beat down the door.” – Kyle Chandler

I have talked to many CPAs about truly organizing and adding Client Accounting Services to their menu of services. Many firms are experiencing great success. It is important for you to understand the digital part of the equation.

CPA.com is offering a helpful workshop – Digital Client Advisory Services Roadmap Workshop – on January 23-24, 2019 in Burlingame, CA. Here a link to more information.

There is a $300 discount that expires on December 23.

Who should attend:

  • Client accounting service practice leaders
  • Key staff
  • Partners in small, midsize and large CPA firms
  • Accounting firm business development and marketing professionals

I hope you explore this opportunity.

  • The game of life is a lot like football. You have to tackle your problems, block your fears, and score your points when you get the opportunity.
  • Lewis Grizzard

Thursday, November 29th, 2018

CPA Regulators & Profession Jointly Explore Evolving Licensure Model

“Everyone thinks of changing the world, but no one thinks of changing himself.” ― Leo Tolstoy

Interesting press release from the AICPA. Times are changing and changes need to happen.

NASHVILLE and NEW YORK (November 29, 2018) – Leaders of the CPA profession, the regulatory community and representatives from critical stakeholder groups are joining together to explore possible changes to the CPA licensure model that embrace the need for expanded skillsets of professionals. The goal of the effort is to align licensure with how CPAs will perform services in an increasingly technologically-driven environment.

The CPA Evolution Working Group, which is having its second meeting today, was formed by the National Association of State Boards of Accountancy (NASBA) and the American Institute of CPAs(AICPA).

The Working Group consists of representatives from Boards of Accountancy, state CPA societies, CPA firms of all sizes from around the country, the accounting academic community, and NASBA and AICPA volunteer committees. They have been tasked with advising NASBA and the AICPA on actions that would position the profession for the future while continuing to protect the public interest.

“Technological innovation and changing client demands are rapidly transforming the skills accountants need to thrive,” said Working Group Chair Cathy Allen, CPA, a managing member of Audit Conduct LLC and a member of NASBA’s Board of Directors. “We want to reimagine the CPA learning and licensure approach. Working Group members recognize the critical role of technological and data analysis expertise needed in firms and businesses today. Our goal is to recommend a strategy that provides the guiding principles for how to build related knowledge and skills into accounting curricula and how to test for those proficiencies on the CPA Exam.”

In the last year, the AICPA and NASBA have discussed potential alternatives to the current licensure model with key stakeholders and have gathered valuable initial feedback. A principal theme that has emerged from the feedback is support for action to evolve the approach to licensure.

“We really value the early engagement we’ve seen from the profession’s key stakeholders,” said Susan S. Coffey, CPA, CGMA, AICPA executive vice president for public practice. “Based on what we’ve heard, there is no question that the profession is ready to take action to capitalize on the opportunities that technology presents to us. That includes an evolution in our approach to licensure that embraces the changes and continues our public protection mandate. I’m looking forward to the Working Group’s recommendations and engaging with the profession and our key stakeholders throughout 2019.”

The Working Group will meet again this winter, and recommendations on a path forward regarding the licensure model are expected to be shared with state boards, state societies, CPAs and other stakeholders next year.

In addition to Allen, CPA Evolution Working Group members are:

  • Tom Broderick, CPA, CGMA, managing principal, BPW&C
  • Mark Dawkins, CPA, CGMA, CMA, dean, Coggin College of Business, University of North Florida
  • Clay Huffman, CPA, senior manager, Frazier & Deeter, LLC
  • Nancy Wolven-Juron, CPA, partner, Deloitte LLP
  • Audrey Katcher, CPA/CITP, CGMA, CISA, partner, RubinBrown LLP
  • Rick Niswander, CPA, CGMA, professor, East Carolina University
  • Todd Shapiro, president and CEO, Illinois CPA Society
  • Susan Somers, executive director, Kansas Board of Accountancy
  • Michael Womble, CPA/ABV/CFF, CVA, MAFF, ASA, managing partner, Williams Overman Pierce, LLP

 

  • Education is the most powerful weapon which you can use to change the world.
  • Nelson Mandela