Connections Mar Apr 2016

bus i n ess and i ndustry

connectionsm a r • a p r 2 0 1 6

Was the INVENTORY Year-End Count a difficult process this year?

Has Management asked for Operational and Financial DASHBOARDS in real time?

Would you like to monitor and control LABOR costs?

Are you MANUALLY entering a lot of data every day?

Do you have approvals in place that you can monitor through WORKFLOWS?

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meesng your business objecsves this year.Another year of staying connected to the profession. Another year of amazing seminars and conferences.

Another year of advocacy in Montgomery and Washington.

it’s your move.Go to ascpa.org on April 20.

One click and you’re a member for another year.

3

DEPARTMENTS 4 | Message from the Chair

8 |MemberProfile: David Grizzard

26 | ASCPA 2016

26 | Member News

29|Classifieds

34 | Remembering

INSIDE THE ASCPA 11|GulfShoresCPECluster

19|AccountingConnectionsConference

20 |Business&IndustryCPECourses

28 | Report from the Diversity andInclusionCommitte

BUSINESS ANDINDUSTRY 6|ChallengesintheCorporate WorldforCPAs By L. Brent McClure, CPA

12|ZoebeleinonTax

11 | Don’t Waste the Opportunity to Be FreshBlood Posted by Caleb Newquist

12|Corporatevs.Public Accounting:Whatare the advantages of each as a career?

16|ShouldYourAuditor PrepareYourTaxReturn? by David McCann

30 |AttheNexusofAccounting andSoftwareTechnology

32 |SuccessfulNegotiating in Corporate America

33 |AICPAProposesExpanding Joint Venture with CIMA

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Well, here we are once again…….in the heart of “busy season”. Actually, I have many accountant friends who bristle a bit upon hearing the term “busy season”. Those in

public practice tend to do so because of the implication that they aren’t very busy from mid-April until January 1 of each year. Anyone who has ever walked that path knows very well that those in public practice tend to be relatively busy all year long in the exercise of their chosen profession. My accounting friends employed in industry tell me that they aren’t too fond of the “busy season” terminology either because they tend to be at their busiest during the first few days of every month with all of the duties of “close out” piled on top of their normal day-to-day responsibilities. The industry accountants, too, are a bit offended by the idea that they are, somehow, not working very hard for much of the year. Maybe, as professionals, we are a bit too sensitive about that issue, but the feelings of professional accountants in both public practice and industry in that regard are certainly understandable.

Speaking of accountants in industry, I have found that many people, including some of our own members, do not realize the substantial commitment that the ASCPA has to that group of professionals. Many of you reading this article may be surprised to know that 32% of the ASCPA membership is made up of professionals with what we in our profession commonly refer to as an “industry” affiliation while 42% of the membership is employed in the practice of public accounting. The remaining 26% of our membership is made up primarily of professionals employed in education or government, as well as those who are retired. Were you aware that almost one of every three ASCPA members were individuals employed in industry?

Clearly, with that number of industry professionals included in our membership the ASCPA must be committed to addressing the needs of those CPAs. In many areas, the issues that are of importance to our members in industry are no different from those of significance to our members in public practice. However, that is not always the case. The ASCPA staff is constantly working to identify exactly what our industry members need. In the area of continuing education, the ASCPA is making a serious attempt to offer a wider range of CPE opportunities designed to address the needs and wants of accountants in industry. Efforts are also being made to identify individuals with industry affiliation who are willing to serve in leadership capacities within the ASCPA, including serving on the board of directors.

Another example of the sensitivity of the ASCPA to the needs of our industry professionals is the dates of this year’s annual meeting (now known as the Accounting Connections Conference) in June. Some of us have heard from our members in industry that it is always difficult for them to attend the annual meeting because it is held during the first few days of June, which is the same time as their monthly closing cycle. The 2016 conference has been moved back a bit to June 9 and 10 in an attempt to address that issue. Moving it even deeper into June is always a possibility, but doing so risks getting into vacation season, which would be an issue to many of our members.

What I would like for all of our members to know, regardless of where you work, is that the ASCPA is committed to representing your professional interests. The more you communicate with us, the more we will know exactly what those interests are. Let us hear from you!

MESSAGE FROM THE

cHAiRMAN

Lowell

6

Challengesi n t h e Corporate World f o r c p a s

The role of finance is going through amajor evolution. Overthepast10yearstheroleofcorporateaccountingdepartments,specificallytheChiefFinancialOfficer(CFO)seat,hasdramaticallychanged. Traditionally seen as number crunchers and reportgenerators, the roleof thedepartmenthasexpanded inmanycompaniestoincludestrategicbusinesspartnerandadvisor.Thefinancialroleisexpectedtodriveaccurateplanningandanalysis,optimize cash flow, andmitigate risk. The evolving CFO needstohonetheirsoftskillsandspendtimeintheboardroom.Thistransformation creates new responsibilities and complexities,anditalsorequiresabalancingactoflimitedsupport,resources,andresponsibility.

Canwedomorewithless?Advancesintechnologyhavebeeninstrumental in achieving this goal. However,many small andmediumsizedcompanies(SME)finditdifficulttodeployresourcestokeepupwiththelatesttechnology.ManytimestheCPAinsidetheSMEistheonlyCPAaround,outsideoftheauditors,andaspreviouslymentionedtheirplateisfull. Itcanproveextremelydifficult and sometimesdisastrous to successfully implementanewERPsystemalongsidethedailyworkload.Evenso,itisnotimpossibleandaCPAinacorporateenvironmentmightbefacedwiththistaskseveraltimes.Thinkofitlikethis-noamountofbusinessknowledgewillmakeupfor inaccuratenumbers. Youshouldn’t spend the day piecing together reports to find an

7

answer. Allocate the necessary timeand invest in the technology so you canallocateyourtimetootherareas.

Can finance really become a businesspartner?SomeCEO’sseethefinanceteamas a few accountants who count beans,produce reports, talk with insurancecompanies,banksandregulators.Itisuptothefinanceteamtohelpbridgethegapby changing this mindset. Spend timewith other managers and executives inyourorganizationandviewthemasyourcustomer. First you need to understand whatyourcustomerneeds.Forexample:

1.Whatinformationdotheyrequire?

2.Howoftendotheyneedthisinformation?

3.Summary,detailedorboth?

So that is easy enough, right? Hold on,let’s take itastep furtherandfigureoutnotonlywhat your customers (others inyourcompany)desirebutunderstandthewhy.Thisplacesthefinancedepartmentin the driver’s seat to fully understandthe interworking of the business. Ifyou are the only CPA, then you shouldabsolutelyunderstand thebusiness fromtop to bottom. If you have multipleCPAs or a diverse accounting or financedepartment, then have meetings toeducate one another. Time is precious,butaroutinehalfhourmeetingtodiscussthelatestcorporatehappeningswillkeepeveryone in tune with the vision and on track to becoming a better businesspartner. Also remember that what thefinance department thinks is good forthebusinessmightnotactuallybeinthebusiness’s or shareholders’ best interest.Thatgoesbothways,Isuppose.

WhydoCPA’sneedsoftskills?Accordingto Wikipedia, soft skills is a termoften associated with a person’s “EQ”(Emotional Intelligence Quotient), theclusterofpersonalitytraits,socialgraces,communication, language, personalhabits,interpersonalskills,leadership,etc.that informsourrelationshipswithotherpeople. Soft skills contrast to hard skills,which are generally easily quantifiableandmeasurable(e.g.softwareknowledge,basicplumbingskills).

A person’s soft skill EQ is an importantpart of their individual contributionto the success of an organization.

Particularly those organizations dealingwithcustomersface-to-facearegenerallymore successful if they train their staffto use these skills. Screening or trainingfor personal habits or traits such asdependability and conscientiousness canyieldsignificantreturnon investmentforanorganization.Forthisreason,softskillsareincreasinglysoughtoutbyemployersinadditiontostandardqualifications.

ClearlyifCPAsaremeetingwiththeCEO,executives,ormanagers,itmakesitmucheasier iftheCPAhasahigherEQ. Theseare not your stereotypical CPA’s naturaltraits;however,youmustpayattentiontotheseasthebackofficeevolves.

Wherearemyresources? Youmayhavelearnedinbusinessschoolthatmanagershave 4 resources – human,fFinancial,physical (PP&E) and informational. Theefficient and effective use of these 4resources helps companies become andremaincompetitive.ThesameholdstrueforCPAsinthecorporateworld.Youhavea department of employees (human), abudget (financial), computers, desk andworkareas(physical),andmoredatathanmostinthecompany(informational).Theartisbalancingtheseinthemostefficientwaytoreachthedesiredresults.

Where does all my time go? With theevolving financial department and theextreme strain on time it may provedifficult to wade through it all. A greattool in dealing with prioritization isPareto’s analysis, otherwise known asthe 80 / 20 rule. Pareto’s analysis is aformal technique useful where manypossiblecoursesofactionarecompetingfor attention. In essence, the problem-solver estimates the benefit deliveredby each action, then selects a numberof themosteffectiveactionsthatdelivera total benefit reasonably close to themaximal possible one. Simply put, formanyevents, roughly 80%of the effectscome from 20% of the causes – 80% ofsalescome from20%ofclientsand80%of your daily interruptions come from20%of the staff. Thismaynot hold theanswer,butitwillhelpstimulatethinkingand organize your thoughts in a way to hopefully get the most accomplished intheleastamountoftime.

Let’s circle back to the activities of aproperlyfunctioningfinancedepartment.

The degree of emphasis on differentactivities varies by organization —and depends on factors such as the organization’s competitive position andthe prevailing economic environment.Research conducted by Ernst & Young,highlighted six principal activities thatfairlyrepresentthecontributionoftoday’stopfinanceexecutives:

1.Ensuring business decisions aregroundedinsolidfinancialcriteria2.ProvidinginsightandanalysistosupporttheCEOandotherseniormanagers3. Leading key initiatives in finance thatsupportoverallstrategicgoals4.Funding, enabling and executing thestrategysetbytheCEO5.Developing and defining the overallstrategyforyourorganization6.Representing the organization’sprogress on strategic goals to externalstakeholders

These activities collectively representthe broader mandate of executives inthe finance role. While several of themcanbemanageddiscretelyandrepresentdifferentongoingfunctionswithinfinance,they are interdependent and mutuallysupportive.

The evolving role demands the abilityto manage and mitigate risk, ensurereliabilityofthenumbers,andhelpmakeintelligent choices with a voice at theexecutivetable.

L. Brent McClure, CPA is a consultant, CFO, instructor, and self-described financial

nerd. He is currently licensed in Alabama and Mississippi, holds a Chartered Global Management Accountant (CGMA) certif-icate and has an MBA from the Freeman

School of Business at Tulane University. While maintaining his own practice, he is

also vice-president of finance for Chalk-able, a company which provides education

support for students and teachers.

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Where did you grow up? WhileIwasborninHuntsville,Alabama,IgrewupinalittletowncalledSouthside,justoutsideofGadsden,andgraduatedfromSouthsideHighSchool.

When did you decide on accounting as a career? Although I never had dreams as akid of becoming an accountant, I did haveaspirations of owningmy own business oneday. I had been told that a background inaccountingwouldgivemethebestfoundationtoaccomplishanythingthatIwantedtodoinbusiness. But it was really in college that Isettledonanaccountingcareer.

Did you have a mentor in high school or college? The accounting coursework at theUniversity of Alabama proved difficult forme. Asaresult, Ibecameverydiscouraged.I signed up for a spring internship with John Ingramat Ingram’sAccounting and FinancialManagement, Inc. in Tuscaloosa and afew very important things happened as a result. First, Iwas able toput the conceptsfrom school together with actual, real-lifeaccounting work experience – a light bulbcame on for me! Second, Mr. Ingram gaveme, and all of his interns, significant client-related duties and responsibilities. One ofthebiggertasksthat Ihadwastoproduceaweeklypayroll,withhundredsofemployees,intimetohaveitshippedFedExtothestateofIndiana.IfIdidnotcompletethepayrollontime,thentheclientwouldnotgetthepaychecksandemployeeswouldnotgetpaid.Quitealotofstressforacollegekid!Butittaughtmehowtoalwaysmeetdeadlinesandtoberesourcefulandresilient.Inevermissedapayrolldeadline. Although therewereacoupleofoccasionswhere IhadtodrivetotheBirminghamairporttotheFedExofficebecauseitwastoolatetodropoffinapick-upboxinTuscaloosa.Third,Ilearnedhowtoworkwithco-workersandclients.Customerservicewasofparamountimportanceandhardworkwasnon-negotiable.Mr.Ingramallowedmetoturnthatinternshipintoapart-timejobthatcarriedmetherestofthewaythroughbothmyundergraduatedegreeandgraduateschool.

ThereisnowaythatIcanthankMr.Ingramenough for his wisdom and guidance for that experience. The more assignmentshe gaveme, the harder Iwanted toworkandthebetterIwantedtodo.Ibelieveallaccounting students would benefit fromhaving a hands-on accounting internshipwhileincollege.

Tell us about your undergraduate experience. Where did you attend college? IreceivedascholarshiptoattendGadsdenState Community College. I worked thethird shift stocking shelves at FoodWorldduringtheyearthatIattendedcommunitycollege.IthentransferredtotheUniversityof Alabama where I earned my Bachelorof Science in Commerce and Business Administration.

What did you do following graduation? Because the 150 hour rule had just beenpassed,IdecidedtoattendtheUniversityofAlabamaatBirminghamwhereIearnedmymasterof accountingwith an emphasis intaxation.Afterearningmymaster’sdegree,Irealizedthatbeginningmycareerinpublicaccountingwouldbeextremelybeneficial.In addition,becomingaCPAwouldbemynextstep.Thiswasanintimidatinghurdle.I made the trip to Montgomery multipletimesand,finally,passedtheexam.Whilesometakegreatprideinpassingtheexam

onthefirstattempt,Ifeltgreatprideinaccomplishingamajorgoalinourprofession.

How has your career path developed?Afteranumberofyearsinpublicaccounting, I took a position in industry as an assistant controller atRiverviewRegionalMedicalCenterinGadsden.MarkNorth,theCFOatthetime,tookachanceonsomeonewithnohealthcareexperienceandfor that Iwillalwaysbegrateful. Mycareerdevelopedas IbecameanassistantCFOandthenCFOathospitalsinbothMississippiandAlabama.Currently,IamtheCFOatBaptistMedicalCenterEastinMontgomery.

meet David

David Grizzard

9

What have been the biggest changes in the profession during your career? Thebiggestchangehasbeentheneedforaccountantstohave“softskills”.Employersnolongerdesirejusttohaveanaccountantthatcansitinthebackofficewithdarkrimmedglassesandaten-keyandcrankoutauditsandtaxreturnsallday.BusinesseswantCPAsthathavethepotentialtodevelopintofutureleaders. Communicationskills,aspiritofteamworkand collaboration, critical thinking skills, problem solving, flexibility,continued learning and growth, conflict resolution and leadership arejustafewofthetalentsthatarenecessarytosecureapositionandthenprogressasaninfluentialleaderinanorganization.

What has surprised you the most as your career has evolved? I have beenamazedbytheconsistentlyhighqualitypeoplethatIhavehadthepleasure toworkwithover theyears. Thehospitals andfirmswhere Ihave worked have each had people of exceptional talent, excellence,compassion and caring.

What prompted you to become a member of the ASCPA? Joining the ASCPA seemed to be the next logical step after passing the CPA exam.Mostofmypeers intheprofessionweremembers,soIwantedtobeamember,too.

How does membership benefit you as a corporate CPA? My ASCPA membershiphelpsmestayup-to-dateoneventsandhappeningsaroundthestateaswellasprovidinganexhaustive listofcontinuingeducationopportunities. I was able to attend the summer CPE conference inSandestinlastJulyandhadtheopportunitytoseeoldfriendsaswellasmakenewones.

What keeps you inspired and motivated each day? Our mission statementhereatBaptistHealthsimplystates,“AsawitnesstotheloveofGodthroughJesusChrist,BaptistHealthexistsasavoluntary,not-for-profitorganizationtopromoteandimprovethephysical,emotionalandspiritual well-being of the people and communities it serves throughthedeliveryofqualityhealthcareservicesprovidedwithina frameworkof fiscal responsibility.” What an awesome opportunity to serve thepatients,hospitalstaff,andphysiciansofthiscommunityeachandeveryday.IoftenkidwithmyfamilythatI“savelives”everyday.Whilethatmayseemabsurdtohearfromsomeonewithanaccountingbackground,weallhavearoletoplayhereatBaptistMedicalCenterEast.Providingexcellent patient care is a sacred work that our caregivers accomplishthroughservantleadership.ItisanhonorandprivilegetohelpourteammembersgettheresourcestheyneedtodotheworkthatGodhascalledthem to do.

What are the biggest challenges facing the profession right now from your perspective in healthcare?Thebiggestchallengeisfindingawaytocontrolrisinghealthcarecosts.ForallCPAsworkinginpublicaccounting,industry,oranywhereinbetween,weallrealizethatprovidinghealthcarecoverage to employees continues to be a rising expense of doingbusiness.Howdowecontrolthatcost?Howcanwehelpouremployeesbe healthier? Howdowe keep themout of hospitalswhere inpatientstayscansometimesbecostly?Doweinstitutewellnessprograms?Dowe encourage gym memberships and other healthy lifestyle choicesby offering financial incentives to employees? How do we work withthe health insurance companies to help reduce the consistent rise inpremiums year over year?

In addition, another big challenge facing the profession is the costassociatedwith theAffordableCareAct (ACA). Muchhasbeenwrittenand said about theACA,but the legislation certainlydoesnot seem tobeaffordable. It isnotaffordable tothosewhohavesignedupfor theinsurance,norisitcosteffectivetothosecompaniesandCPAfirmswhoarenowinthemidstofcomplyingwithallofthevariousaspectsofthelaw.

What keeps you up at night? Healthcare is an ever changing world –physicians, staffing, technology, regulations, safety challenges, qualityconcerns, and reimbursement frompayers such asMedicare,MedicaidandBlueCross. Trying to stayaheadof thecurveandanticipate thesechangesandhowtheywillaffectourhospital’sfutureviabilityisaconstantsourceofconcernandrequiresmuchtimeandattention.

Tell us about your family. IammarriedtoNitaGrizzard. NitacurrentlyservesasavolunteerattheMontgomeryCancerCenterinMontgomery.Wehave twodaughters, Katie (23) andAbbie (19). Katiewas recentlymarriedtoChrisBlightinJuneof2015.Theyareexpectingtheirfirstchild,HenryOwen,inMarch.KatieisanEnglishteacheratPrattvilleJuniorHighandChris coaches thegirl’s varsity soccer teamatAuburnHighSchool.AbbiejustbeganhersecondsemesterofcollegeatAuburnUniversityatMontgomery. She is studying to become a nurse.

Is there anything else you’d like to share?IdiscoveredearlyinmycareerthatwhileCPAsmustbetechnicallycompetentintheirfieldofexpertise,they must also be experts in how they interact fairly and kindly withothers,whethertheyarepatients,physicians,clients,co-workers,bossesor subordinates.

“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

– Maya Angelou

MEMBER PROFILE

GULF SHORES CPE SESSIONS The Beach Club 925 Beach Club Trail

Gulf Shores, AL 36542

Current Issues in Accounting and Attestation: An Annual UpdateTuesday, June 21, 20168:30 AM | CPE: 4 A&AInstructor: GregClark Practical Tax Tips and Techniquesfor Closely- Held BusinessesTuesday, June 21, 20168:30 AM | CPE: 4TaxInstructor: MichaelFrost

K2’s Microsoft Office 2016 - Improving Productivity with New FeaturesTuesday, June 21, 20168:30 AM CPE: 4 OtherInstructor: TBA Guide and Update to Compilations, Reviews, and New PreparationsTuesday, June 21, 20161:00 PM | CPE: 4 A&AInstructor: GregClark

K2’s Advanced QuickBooksTips and TechniquesTuesday, June 21, 20161:00 PM CPE: 4 OtherInstructor: TBA

Smart Tax Planning Strategiesfor IndividualsTuesday, June 21, 20161:00 PM | CPE: 4TaxInstructor: MichaelFrost

Tax Consequences and ReportingIssues of LLCs, LLPs, LPs,and Other PartnershipsWednesday, June 22, 20168:30 AM | CPE: 4TaxInstructor: MichaelFrost

Preparing Special PurposeFramework Financial Statements: Cash, Modified Cash and Tax BasisWednesday, June 22, 20168:30 AM | CPE: 4 A&AInstructor: GregClark

Controller’s Update: Today’s Latest TrendsWednesday, June 22, 20168:30 AM | CPE: 4 OtherInstructor: BrentMcClure

The Statement of Cash Flows: Preparation Guidance &Presentation IllustrationsWednesday, June 22, 20161:00 PM | CPE: 4 A&AInstructor: GregClark

Capitalized Costs and Depreciation:Key Issues and AnswersWednesday, June 22, 20161:00 PM | CPE:4TaxInstructor:MichaelFrost

Analyzing a Company’s Financial StatementWednesday, June 22, 20161:00 PM | CPE: 4 OtherInstructor: BrentMcClure

Critical Skills forBudgeting SuccessThursday, June 23, 20168:30 AM | CPE: 4 OtherInstructor:BrentMcClure

IRS Disputes: Identifying Options for Your ClientThursday, June 23, 20168:30 AM | CPE: 4TaxInstructor: MichaelFrost Advanced Concepts in SSARS 21and Nonattest ServicesThursday, June 23, 20168:30 AM | CPE: 4 A&AInstructor: GregClark

Financial Forecasting: Planning for SuccessThursday, June 23, 20161:00 PM | CPE: 4 OtherInstructor: BrentMcClure

Financial Statement Disclosures:A Guide for Small and Medium-Sized BusinessesThursday, June 23, 20161:00 PM | CPE: 4 A&AInstructor: GregClark

Hot Tax Planning DevelopmentsUnder the Current Tax LawThursday, June 23, 20161:00 PM | CPE: 4TaxInstructor: MichaelFrost Fraud Basics: Protecting the Company TillFriday, June 24, 20168:30 AM | CPE: 4 A&AInstructor: GregClark

Health Care Reform Act: CriticalTax and Insurance RamificationsFriday, June 24, 20168:30 AM | CPE:4TaxInstructor: MichaelFrost

Risk, Cost, and Cash Managementfor Controllers and Financial ManagersFriday, June 24, 20168:30 AM | CPE: 4 OtherInstructor: BrentMcClure

Analyzing Costs, Productivity,and Efficiency: Three Ways toBoost Your Bottom LineFriday, June 24, 20161:00 PM | CPE: 4 OtherInstructor: BrentMcClure

Proven Controls to SteerYou Clear of FraudFriday, June 24, 20161:00 PM | CPE: 4 A&AInstructor: GregClark

Social Security and Medicare: Maximizing Retirement BenefitsFriday, June 24, 20161:00 PM | CPE: 4TaxInstructor: MichaelFrost

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12

I spent twenty-eight yearsof my career working incorporate tax departments,most of that time as the

department head. As I began my careerintaxation,theCCorporationwas the only vehicle available forthe business owner to protect his personal assets from the creditorsofthebusinessorworse, litigationthat could wipe out a lifetime ofsavings (sole proprietorships andgeneral partnerships offered noprotection). This safety net cameat the price of paying tax at thecorporate level and once againon distributions to the owners.Unlike today, the dividend wastaxed as ordinary income at theshareholder’stoptaxbracketinthetaxyearthedividendwaspaid(upto70%).

The tax on dividend distributionswas never the tax department’sconcernwhen Iworked inpubliclytraded corporations, but theopposite was the case for my closely held corporate employers.The closely held corporations(mostly family owned) wereconcerned with building equity

andthuscontrollingthetimingandamountofdividenddeclarationsintheirplanning.Thetaxdepartmenthad towalkatightropebecauseaslip oftenmeant additional tax ontheowners.TheIRSwouldlookforways to treat an item as a dividend distribution, meaning additionalcorporatetaxandadditionaltaxonthe shareholder. The second IRSweaponwasusingtheaccumulatedearningstaxtorecoverthesecondpiece of the corporate earnings pie it felt it was denied whenthe corporation elected not todistribute all its earnings. Theirthinkingwasthatretainingaportionof corporate earnings to grow the business was a sin punishable bytaxing the corporation (counteringthis presumption was the duty ofthe tax department). We’ll dealwith the toolsweused inanotherarticle.

The next progression in corporatetaxation came with the additionof Subchapter S to the InternalRevenueCode.Thankstothenewlyminted Subchapter S, qualifyingcorporationshadbutasinglelayeroftax.My44yearsinpracticehas

ZOEBELEINON TAX

by Tom Zoebelein, CPADirector of Tax Research,

Pearce Bevill Leesburg Moore

13

CABIN FEvERInspires the Writing of the First LLC Statute Circa 1977Duringthewinterof1977somebrillianttaxgeeksinWyominggatheredaroundthecabinfireplacetoplaytheirfavoritegameofNameThatCodeSection. Oneguyjumpedupandsaid,“I’mtiredofthisgame.Weneedtothinkupanother.” Aftermuchtrialanderror,theycreatedthatnowpopularboardgameTaxPictionary.Duringthefirstround,Melvindrewsomethingontheboardandalltheotherswerestumped. “Ican’tfigureoutwhatthis[businessentity]isthatyoujustdrew.Itlookslikeahybridofacorporationandapartnership.Whatdoyoucallthatthing?” “Itisalimitedliabilitycompany,”Melvinsaidwithabeamingsmile. “HolycowthisisthepuzzlepieceIhavebeenworkingonforalmosttenyears.It’sbeautiful.Itactslikeapartnershipbutwithonlyoneleveloftax.” That’showthelimitedliabilitycompanywasborn(Atleastthat’showIseeit,andit’smystory). Court-tested,Melvin’sonetaxwonder,the“LLC,”spreadlikewildfireaseachstateracedtoenacttheirversionorfacecompaniesleavingtheirstate.Alabama,nottobeleftout,puttheirLLCstatuteinthemiddleofthegeneralpartnershipcodesection,butthatisawholedifferentstory. Melvin’sLLCtodayistheSwissArmyPocketKnifeoftheInternalRevenueCodeandadreamcometrueforsmallbusinesses.OpenonebladeoftheLLC:itisapartnership.Openotherblade:itisanassociationtaxedasacorporation.Openthelastblade:itisadisregardedentity.Melvin’sthreebladedLLCgavesmallbusinessestheprotectionunderstatelawofacorporation,butwithallthebenefitsofpartnerships.It’sthehybridofallhybrids,avirtualtaxNirvana.Inthetrashcanwenttherulesforpartnershipagreementstodefendpartnershiptreatment.Sadly,theWyominggeekslosttheirshirtsontheirnewgameofTaxPictionary.Itonlysoldonecopy.Hey!Anyone up for a game?

taughtmethatwhentheIRSgivethwatchforwhatittakethaway.“Qualifyingsmallbusinesses,ifyouelectIwillallowjustonelayeroftaxanditwillbeon100%ofcorporatetaxableincome,andthoseitemsofincomewhosetaximpact isdeterminedat theshareholder levelwillbeallocatedseparately.”NowanyauditchangewasfeltbyalltheSshareholders.Therewasnopressureonthetaxdepartment.Gooddealforsmallbusinesses,sogoodinfactthattheIRSfeltcheatedoutoftheirlastCcorporatedividendandshareholdersweredeferring incomefromtheSbyuseofafiscalyear.The IRS’scureforthe revenue losswas theadditionof thebuilt ingains tax forcorporationsconvertingtoSandthebanondeferralsinexcessofthreemonths.TheIRSfeltthefiscalyearScorporationswereusingitstaxmoneyduringthedeferralperiodandsotheFiscalSnowmustpaythetaxdeferredinadvanceasatollcharge.

TheScorporationwasagoodfirst step,but the restrictionon thenumberof shareholders, at ten, coupledwith someof the less favorable corporateattributes intheSubSDNApasseddownfromitsCcorporateparents,hasmade the S corporation less than ideal formany small businesses. OneCattributeleftintheSubSgenethathasbeenproblematicsinceIhavebeeninpublicpracticeistherequirementthatshareholderdistributionsbemadeproportionaltothepercentageinterestintheS.Youknowthefamiliar“whydoeshehavetogetthesameasmewhenIhavebeencarryinghimforyears?”

Shortlivedbutverycreative,themasterlimitedpartnership,MLP,wasnextonthescene.TheMLPinterestholderreceivedlimitedpartnershiptreatmentandthat interestwaspublically traded likecorporatestock.TheMLPcouldbring in tons of cash by actually sellingMLP interest on the stockmarket.The tax department, where I was working, was tasked with evaluating aconversionofourcloselyheldcorporationintoamasterlimitedpartnershipwhenthebottomdropped.TheIRSslicedanddicedMLP,eliminatingitsuseto all but theextractive industries.MLPsflashofbrilliancewas short livedandgoodforthosegrandfatheredin,butasataxstrategy,sitsgatheringdust.

14

The other day, I read this article about CFO turnover at big companies. The long-short of it being that fresh blood does most companies a lot of good. It makes sense; different experiences make for a more diverse team that will avoid falling into the same old routine.

It got me thinking about my own career, mostly spent working in smaller companies, and how new blood — sometimes mine, sometimes someone else’s — can positively impact a company or team, mostly because they were strange. Not in a bad way mind you, because it was much different than the status quo.

The first time I experienced this was at my first job, a boutique CPA firm, when a new senior associate came on from PwC. Our firm was scrappy but disorganized and sloppy. The new senior seemed like just the type of person to bring some sanity and order to a firm that badly needed it. I knew immediately that I wanted to work with him as much as I could because I felt like he would teach me new things and could relate to me better than the partners, who were accessible but always took their knowledge for granted. We developed a good relationship quickly and I became comfortable confiding in him. Other young staff on the team felt that way too, more so than any of the other seniors and even managers, earning him lots of recognition from the partners.

At my second job, a Big 4 firm, I joined a large, exclusive team that had some perennial members. They were the go-to people for knowledge and key holders for access to managers and partners. I joined the team at the same time as a couple other new people and we bonded quickly because the perennial members looked at us like outsiders. We all worked hard (too hard, of course) but the new team members enjoyed it because of the new friendships and we gave the team some levity. Our managers and partner noticed the results and soon we became integral parts of the team, taking ownership in various areas. So

not only was the team known for being sharp and hard-working, but we were fun, making it a coveted engagement team.

This happened again with the Big 4 firm when I transferred to a new office. Here I was on an even larger team and was a total outsider. Initially this was an advantage because I had to prove myself, having no prior working history with anyone else on the team. I managed to build relationships and develop respect among staff and managers. After a time, I was able to make suggestions where I saw some opportunities for improvement.

On large teams, old habits die hard so it can take time to make a lasting impression.

I guess what I’m getting at is this — any time you’re about to join a new employer or team, you have a chance to change the dynamic and culture for the better, sometimes in big ways. Most people probably don’t think their presence makes any difference, but it should always make a difference. It can take time, but your unique experience and perspective can cause people to think in a whole new way, give life to a team that’s trudging along or be the catalyst that takes them to

a higher level of performance. In other words, don’t waste your opportunity in a new job by staying in the background. Being the new guy helps the old team. Don’t waste that.

Interviewers often want to know what a particular candidate brings to a table. Rather than give a cliched answer about “energy” or “hard work” think about how you’ve managed to change the culture of your past employers and teams and cite those specific examples. In some cases, you might not be a good fit, but that’s okay. Your distinct flavor will be the perfect addition to the right team and they won’t waste time in adding you to the mix.

Posted by Caleb Newquist,Going Concern, Accountingfly,

January 12, 2016

DON’TWASTE THE

OPPORTUNITY TO BE

FRESH BLOOD

15

CORPORATEvS. PUBLICACCOUNTINGWhat are the advantagesof each as a career?Whether you’re just starting out in your accounting career or you’re interested in making a career transition, one decision you’ll need to make is whether to pursue a career in corporate or public accounting. While there’s no one-size-fits all career path in accounting for CPAs, following is a guide to the benefits of choosing a public or corporate accounting career.

Benefits of a career in public accountingPublic accounting experience provides a great foundation for an accounting career. Exciting aspects of public accounting include working with a variety of clients and the chance to become a partner or principal. Other noteworthy advantages include:

High demand that’s growing. Growth and job availability are looking better than ever for people entering the field of public accounting. According to the AICPA’s 2013 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits, hiring by public accounting firms is “at an all-time high, especially at the Master’s degree level.” Further, the report reveals that 89% of public accounting firms also forecast that they will hire the same or more graduates year after next—a positive trend into the future. Demand is especially high in audit and tax, according to Robert Half’s 2013 Salary Guide.

Potential for travel. Large public accounting firms offer the chance to work with major, multinational clients and the possibility of extended or frequent travel, both domestically and abroad. However, CPAs who like to travel, but less regularly, may opt to join a small or midsize public accounting firm to work with local or regional clients.

Diverse exposure. Accountants at public accounting firms have the opportunity to work with multiple clients, gaining increased exposure to various types of business operations as well as senior executives. For example, as an auditor, one is usually exposed to manufacturing, service, retail, government, and other industries. This can provide more opportunity down the road if one decides to go the corporate route. Going corporate from the beginning would most likely limit exposure to those various business segments and could get one pigeonholed.

If you’re a CPA with Big Four experience, you’ll almost always be in demand among both public accounting firms and corporate accounting

departments, according to Robert Half’s Salary Guide. However, CPA candidates who don’t have experience in a particular segment (corporate or public) can also gain it through an interim or project job placement.

Competitive salary. In many cases, public accounting salaries are higher than those in private accounting, and often come with hefty sign-on bonuses. For instance, an audit manager in public accounting can earn upward of $126,500, compared with $111,000 for an internal audit manager in a midsize corporate firm, according to Robert Half’s Salary Guide. Further, a big part of the allure of public accounting is the chance to become a partner.

Opportunities for advancement. With hard work and talent, progression through the ranks of a public accounting firm can be swift over the first few years. According to the New York State Society of CPAs’ The CPA Journal, it takes just about 13 years on average to make partner. For experienced and accomplished CPAs, there are also consulting opportunities. That said, mergers, number and age of current partners, and age of partner candidates are all factors that can increase or decrease this 13-year average path to partnership.

Benefits of a corporate accounting careerPrivate accounting enables professionals to hone their craft in an area of business they enjoy. They also may enjoy a greater work/life balance than their counterparts in public accounting, although public accounting firms are taking steps to address this issue as they compete with the private sector for top talent.

Specialization opportunities. Manufacturers, major retailers, biotechnology companies, technology firms, governmental agencies, and environmental organizations are often looking for new accountant specialists for their teams. Specialty areas of IT, business valuation, and forensic accounting are also in strong demand, according to Robert Half’s 2013 Salary Guide.

Opportunitiestocontributetothebottomline.Accounting roles that support business growth in corporations—such as financial analysts and business system analysts—provide accountants with a unique opportunity to directly contribute to the company’s bottom line. Because corporate accountants report on the results of the business for which they are employed, job satisfaction can be higher than in public accounting, where the work is performed for clients. If you determine you want to be a high-ranking executive within a particular firm or in a specific industry, you may be better off gaining that specialized experience as quickly as possible in a corporation.

Personal flexibility. On the work/life balance scale, private accounting has the edge. In public accounting, the focus is on billable hours. In private accounting, there is no need to track time and relate it to money made for the company every second of the day. Generally

speaking, there are also fewer overtime hours in the corporate accounting world. On the other hand, it’s not unusual for CPAs to work six days a week during tax season.

Consistency. Knowing that you have a specific job to do (and place to do it) day after day, for many people, is comforting. Consistency and routine are important stress reducers for some professionals, which makes corporate accounting an attractive choice. Security and routines are also important as well when you’re making decisions about marriage and children.

Beyond salary incentives. In order to attract top performers, companies in the private sector are taking steps to enhance their overall compensation packages to rival those at public accounting firms. When benefits over and above salary and sign-on bonuses are considered, additional corporate compensation offerings often include stock options, annual and discretionary bonuses, and a pension.

There is more than one way to make the journey through your accounting career. If you look at CFO, controller, director of finance, and treasurer résumés, you’ll see that there’s no consistent road map. There is often a mix of public accounting and private industry experience, as many choose to work in both environments at some point in their careers. In addition, it’s not uncommon for people to begin their careers in public accounting to build a foundation, then move to corporate accounting. For some, though, the hours and stress that can be experienced in public accounting lead to a desire to switch to corporate accounting.

If, as a CPA or CPA candidate, you are having trouble deciding on public vs. private, some experienced accountants feel choosing the public route could be the best bet. While it’s relatively easy to move from public accounting to corporate/private accounting after a few years, they argue, it’s not so easy to work in private and then go back and compete with all the college grads for entry into a public career. And moving laterally from private to public can become more difficult the longer you stay in the private sector.

All-in-all, identifying your long-term personal and professional goals, along with your work environment likes and dislikes, is an ideal way to help you decide which accounting career path is right for you.

This article is provided courtesy of Robert Half, parent company of Accountemps, Robert Half Finance & Accounting and Robert

Half Management Resources. Robert Half is the world’s first and largest specialized staffing firm

placing accounting and finance professionalson a temporary, full-time and project basis.

Follow Robert Half on Twitterat twitter.com/roberthalf.

16

SHOULD YOUR AUDITORPREPARE YOUR TAX RETURN?

WHATTOExPECTINTHENEWYEAR

While regulators frown on a company’s auditor handling its taxes, new research suggests that such concern is unwarranted.

With corporate tax avoidance a hot issue in the United States and Europe these days, it’s no surprise that a recent $185 million settlement for taxes going back to 2005 between the British government and Google has proved highly contentious. Members of the political opposition have denounced it as “derisory” and a “sweetheart deal.”

Yet European regulators are set to ban an accounting arrangement that, new research suggests, actually inhibits corporate tax aggressiveness of the kind brought to light in the Google case.

Under new European Union rules slated to take effect later this year, and likely to be monitored closely by regulators across the Atlantic, auditors of corporate financial statements will be prohibited from providing a variety of tax-related services to their clients, including preparation of company tax returns.

But, according to research published in the current issue of the American Accounting Association journal The Accounting Review, tax returns prepared by companies’ external auditors claim roughly 30% less in questionable tax benefits than do those prepared by other outside accountants or by the firms’ own tax officers.

Why is this the case? The study, based on data from S&P 1,500 companies, offers a rationale: “With the joint provision of audit and tax services, auditor preparers bear greater costs, relative to other preparer parties, if a position is overturned due to a tax audit and court action.”

The study notes that auditors bear at least two types of risk that do not apply to other preparer types: (1) the risk of a

financial reporting restatement due to an audit failure; and (2) reputation risk, in that an auditor’s work is more visible and sensitive to the firm’s leadership.

In short, having more to lose than other preparers, auditors tend to be less aggressive in advancing tax-benefit claims.

“Ever since the turn-of-the-century accounting scandals involving Enron, WorldCom, and others, regulators have consistently expressed concern over companies’ purchasing both audit and tax services from the same accounting firm,” says Petro Lisowsky, a University of Illinois at Urbana-Champaign professor and a co-author of the study along with Kenneth Klassen of the University of Waterloo and Devan Mescall of the University of Saskatchewan.

Lisowsky notes that the vast majority of research on this issue has focused on whether this arrangement reduces audit independence and thereby compromises corporate financial reporting. But relatively little attention has been paid to the question of how this arrangement affects tax reporting.

“Given regulators’ perennial distrust of auditors providing tax services to their clients, our study will probably come as a surprise,” Lisowsky says. “It finds that company taxes prepared by the external auditor tend to shun questionable tax breaks — so-called unrecognized tax benefits — considerably more than those prepared by another accountant or by a firm’s tax department.”

The research takes advantage of unique access to confidential Internal Revenue Service data on who signed corporate tax returns, information made available to Lisowsky on the condition that corporate anonymity be preserved.

The authors analyzed the relationship of tax-preparer identity to three variables: (1) the amount of reserve companies

set aside each year (as footnoted in their financial statements) for unrecognized tax benefits — that is, claims that are uncertain but are deemed more likely than not to pass muster with the IRS or in court; (2) data from annual financial statements; and (3) auditor identity and fees, including tax fees.

About 55% of the companies in the sample (which consisted of more than 700 firms followed for two years, for a total of 1,533 firm-years) submitted tax forms signed by a company officer, while about 20% were signed by the firm’s external auditor and the remaining 25% by another accountant.

After controlling for size, profitability, and other factors, the authors estimate that companies whose taxes were prepared by their auditors claimed about 34% less in aggressive tax benefits than those that relied on another accountant, and about 28% less than those who prepared them internally.

While the study’s main thrust was to explore tax aggressiveness, the professors see their findings as relevant to overall corporate financial integrity, which regulators tend to see as compromised when auditors provide tax services.

As Lisowsky puts it, “Given the importance of taxes in company finance, [this study] should enhance the reliability of companies’ financial reporting. In this sense, the study should be of value to investors as well as to corporate managers, directors, and tax and finance regulators.”

The new study, entitled “The Role of Auditors, Non-Auditors, and Internal

Tax Departments in Corporate Tax Aggressiveness,” is in the January/

February issue of The Accounting Review, published every two months by the

American Accounting Association.

DAVID MCCANNCFO.com

18

19

Wednesday June 8 Annual Young CPA 10:30am – 5:30pmGolf Tournament at the Robert Trent JonesOxmoor Valley Course Registration & Lunch 10:30am

Shotgun Start 12:30pm Awards 5:30pm 19th Hole 5:30pm – 7:30pm Robert Trent JonesOxmoor Valley Clubhouse

Thursday June 9

Exhibit Hall opens 7:00am - 9:00am with Breakfast Stationsthroughout featuringAlabama favorites. Morning Sessions 8:00am – 12:00pm Morning Break from9:40am – 10:00am

SESSION A Professional Issues Update, Economic Update, and Cyber Securitywith Barry Melancon,President & CE of the AICPA,Dr. Kevan Deravi, & Melanie Lauridsen, CPA.

SESSION B ASB Matters & ARCS Matterswith Ahava Goldman, CPA& Michael Brand, CPA Networking Luncheon 12:00pm-1:00pm Afternoon Sessions 1:00pm – 5:00pm Afternoon Break from 2:40pm – 2:50pm SESSION C2016 A&A Updatewith Jim Martin, CPA SESSION DThe Top THREE 2016Hot Tax Topicswith the Sirote Tax Panel Celebration 6:30pm – 8:00 p.mof Success: Awards Reception

Friday June 10 Exhibit Hall Opens 7:00am - 9:00amwith Breakfast Stationsthroughout featuringAlabama favorites. ConCurrent SeSSionS

SESSION EFederal Tax Update 8:00am – 10:00am with Lisa McKinney, CPA

Sales And Use Tax 10:20am – 12:00pm for Alabamawith Blake Madison

SESSION F Young CPA Session 8:00am – 12:00pm with Scott Bradbary, CPAand Representative Cam Ward

SESSION G Facing the Future 8:00am – 12:00pm(student/educatorsession)with Jeff Phillips, President of AccountingFly

2016ascpa

accounting connections

June 8 – 10, 2016 • Sheraton Hotel • Birmingham, AL

BUSINESS & INDUSTRY CPE SESSIONS

K2’s Microsoft Office 2016 - Improving Productivity with New FeaturesTuesday, June 21, 168:30 AM-12:00 PMCPE: 4 OtherGulf ShoresInstructor: TBA

K2’s Advanced QuickBooks Tips and TechniquesTuesday, June 21, 20161:00 PM-4:30 PM-CPE: 4 OtherGulf ShoresInstructor: TBA

Controller’s Update: Today’s Latest TrendsWednesday, June 22, 20168:30 AM-12:00 PMCPE: 4 OtherGulf ShoresInstructor: Brent McClure

Analyzing a Company’s Financial StatementWednesday, June 22, 20161:00 PM-4:30 PMCPE: 4 OtherGulf ShoresInstructor: Brent McClure

Critical Skills for Budgeting SuccessThursday, June 23, 20168:30 AM-12:00 PMCPE: 4 OtherGulf ShoresInstructor: Brent McClure

Financial Forecasting: Planning for SuccessThursday, June 23, 20161:00 PM-4:30 PMCPE: 4 OtherGulf ShoresInstructor: Brent McClure

Risk, Cost, and Cash Management for Controllers and Financial ManagersFriday, June 24, 20168:30 AM-12:00 PMCPE: 4 OtherGulf ShoresInstructor: Brent McClure

Analyzing Costs, Productivity, and Efficiency: Three Ways to Boost Your Bottom LineFriday, June 24, 20161:00 PM-4:30 PMCPE: 4 OtherGulf ShoresInstructor: Brent McClure

K2’s Excel Tables and Data Models - Efficiently Managing, Analyzing & Reporting Your DataMonday, July 25, 20168:30 AM-4:15 PMCPE: 8 OtherBirminghamInstructor: TBA

K2’s Budgeting and Forecasting Tools and TechniquesTuesday, July 26, 20168:30 AM-4:15 PMCPE: 8 OtherBirminghamInstructor: TBA

Taking the Self Taught Excel User to the Next LevelWednesday, July 27, 20168:30 AM-4:15 PMCPE: 8 OtherMontgomeryInstructor: Karl Egnatoff

Working With, Storing, and Securing Digital InformationThursday, July 28, 20168:30 AM-4:15 PMCPE: 8 OtherMontgomeryInstructor: Karl Egnatoff

Advanced Business Law for CPAsMonday, August 15, 20168:30 AM-4:15 PMCPE: 8 OtherHuntsvilleInstructor: Robert Walter

Employment Law Update: Key Risks and Recent TrendsTuesday, August 16, 20168:30 AM-4:15 PMCPE: 8 OtherBirminghamInstructor: Robert Walter

4 Most Overlooked Business Risks: Preparing for the FutureTuesday, August 16, 20168:30 AM-4:15 PMCPE: 8 OtherMontgomeryInstructor: William O’Brien

Analytics and Big Data for AccountantsWednesday, August 17, 20168:30 AM-4:15 PMCPE: 8 OtherBirminghamInstructor: Robert Walter

00

4

02

70

29

03

4

03

90

47

052

053

054

00

70

100

130

160

19

02

20

25

21

Conducting Business the Right Way – How to Add and Keep More Customers and ClientsTuesday, August 23, 20168:30 AM-4:15 PMCPE: 8 OtherMobileInstructor: Karl Egnatoff

The Eight Hour MBAWednesday, August 24, 20168:30 AM-4:15 PMCPE: 8 OtherBirminghamInstructor: Jennifer Elder

Excel PivotTables – Powerful and Not Hard to Use…Really!Wednesday, August 24, 20168:30 AM-4:15 PMCPE: 8 OtherMontgomeryInstructor: Karl Egnatoff

The New Controllership: Keys to Boosting Financial PerformanceFriday, August 26, 20168:30 AM-12:00 PMCPE: 4 OtherBirminghamInstructor: Brent McClure

The New Controllership: Keys to Boosting Management SkillsFriday, August 26, 20161:00 PM-4:30 PMCPE: 4 OtherBirminghamInstructor: Brent McClure

K2’s Advanced ExcelMonday, August 29, 20168:30 AM-4:15 PMCPE: 8 OtherMobileInstructor: TBA

Introduction to Business valuationTuesday, August 30, 20168:30 AM-4:15 PMCPE: 8 OtherBirminghamInstructor: Kevin Andrews

K2’s Introduction to Excel MacrosTuesday, August 30, 20168:30 AM-12:00 PMCPE: 4 OtherMontgomeryInstructor: TBA

K2’s Technology UpdateTuesday, August 30, 20161:00 PM-4:30 PMCPE: 4 OtherMontgomeryInstructor: TBA

K2’s Excel Financial Reporting and AnalysisWednesday, August 31, 20168:30 AM-4:15 PMCPE: 8 OtherMontgomeryInstructor: TBA

Beyond CPA “Best Practices” - Taking Next Steps in the Future of the Client/Customer ServiceTuesday, September 13, 20168:30 AM-4:15 PMCPE: 8 OtherBirminghamInstructor: Karl Ahlrichs

Blue Oceans and Clean Paper - Using the ACA and Wellness as a Catalyst to Move OrganizationsWednesday, September 14, 20168:30 AM-12:00 PMCPE: 4 OtherBirminghamInstructor: Karl Ahlrichs

Applying “Lean” Thinking to Making Employees Your Competitive AdvantageWednesday, September 14, 20161:00 PM-4:30 PMCPE: 4 OtherBirminghamInstructor: Karl Ahlrichs

Lean Accounting: Apply Lean Thinking to Financial ManagementThursday, September 15, 20168:30 AM-12:00 PMCPE: 4 OtherMontgomeryInstructor: Don Minges

How Good Companies Become Great: Secrets to SuccessThursday, September 15, 20161:00 PM-4:30 PMCPE: 4 OtherMontgomeryInstructor: Don Minges

Executive Education’s Annual CFO Spotlight: 4 Select IssuesFriday, September 16, 20168:30 AM-4:15 PMCPE: 8 OtherMontgomeryInstructor: Don Minges

Controller/CFO Update: Hot Topics Facing Today’s Financial ProfessionalWednesday, September 21, 20168:30 AM-12:00 PMCPE: 4 OtherMobileInstructor: Brent McClure

Gaining a Competitive Advantage: Critical Skills for CFOs and ControllersWednesday, September 21, 20161:00 PM-4:30 PMCPE: 4 OtherMobileInstructor: Brent McClure

109

110

115

118

120

125

126

06

30

69

074

08

60

87

09

8

101

108

129

148

150

BUSINESS & INDUSTRY CPE SESSIONS (continued)

K2’s Excel Tips, Tricks, and Techniques for AccountantsMonday, September 26, 20168:30 AM-4:15 PMCPE: 8 OtherHuntsvilleInstructor: TBA

K2’s Excel Best PracticesTuesday, September 27, 20168:30 AM-4:15 PMCPE: 8 OtherBirminghamInstructor: TBA

K2’s Technology for CPAs - Don’t Get Left BehindTuesday, September 27, 20168:30 AM-4:15 PMCPE: 8 OtherHuntsvilleInstructor: TBA

K2’s Top PDF Features You Should KnowWednesday, September 28, 20168:30 AM-12:00 PMCPE: 4 OtherBirminghamInstructor: TBA

K2’s Tech Tools and Gadgets for a More Efficient You!Wednesday, September 28, 20161:00 PM-4:30 PMCPE: 4 OtherBirminghamInstructor: TBA

Position Your Organization for Success: Strategies for Today’s Competitive EnvironmentWednesday, September 28, 20161:00 PM-4:30 PMCPE: 4 OtherHuntsvilleInstructor: Amanda Snead

Analyzing Costs, Productivity, and Efficiency: Three Ways to Boost Your Bottom LineThursday, September 29, 20161:00 PM-4:30 PMCPE: 4 OtherHuntsvilleInstructor: Amanda Snead

Introduction to Excel PivotTablesFriday, September 30, 20161:00 PM-4:30 PMCPE: 4 OtherBirminghamInstructor: Marc Hamilton

172

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156

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Fastest smartest malpractice insurance. Period.

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BUSINESS & INDUSTRY CPE SESSIONS (continued)

23

The roles of corporate treasurers, chief financial officers and money managers are hustling to keep up with changing times. That means CFOs have a lot more on their plate than they once did.

Risk mitigation is a significant source of this growing priority list. A recent survey of CFOs and corporate finance executives released by Grant Thornton said uncertainty of the U.S. economy is one of the largest worries among this group of professionals.

But the research also uncovered how these professionals are tasked with diversifying their responsibilities. Security, for instance, also topped the list, with about half of CFOs surveyed citing cyberthreats as a chief concern.

It’s all about avoiding factors — like an economy in flux or cyberthieves — that expose a corporation to risk. Indeed, Grant Thornton found that up to 80 percent of CFOs describe themselves as “averse” to riskier growth strategies.

So, how is it that corporate treasurers are now finding themselves in a position to protect their corporations from cyberrisks?

According to new research from the American Institute of Certified Public Accountants (AICPA), more than 95 percent of Chartered Global Management Accountants (CGMA) surveyed said their businesses are worried about database breaches, phishing scams and other types of security failures. Further, 72 percent stated that their corporations have turned to the finance function to help mitigate these risks.

At first glance, it may seem that a CFO is an unlikely line of defense against something as technical as cybersecurity. But, says AICPA Vice President of CGMA External Relations Ash Noah, CFOs can actually be in a prime position to mitigate cyberrisk.

“The finance function has a unique view into the complexities of the business, as well as an in-depth understanding of the industry, markets and risk climate, yielding important insights for a company’s strategic direction,” Noah said in a

statement last month when the AICPA released its findings. “As the finance function continues to evolve to become more business-centric, it’s critical for finance executives, from the CFO down, to play a driving role in preparing for and addressing potential cyberrisks for the long-term growth of the company.”

RESPONDING TO A GROWING THREATAccording to the AICPA, nearly one-third of respondents said their company was a victim of a cyberattack in the last two years — a 7 percent increase from 2014. More than one-fifth said these attacks are worse than what is portrayed in the media and news reports.

In an interview with PYMNTS, Noah said that corporations have been gradually placing more attention and resources in the area of cybersecurity over the last four or five years. But it was the infamous Target data breach that really got CFOs acting.

As corporations impose stricter policies with their suppliers and obtain insurance, financial professionals are recognizing their position of strategy.

“Although it is a technical area and you need IT systems knowledge and IT expertise, what you need is a CFO or a finance team understanding the different implications of sets of data across the organization,” Noah explained. “You need an organizational view, rather than a functional view, of a piece of data as it moves around the organization, so finance is in a position where they can actually bring that view.”

He added that this is a natural progression of the evolving role of the CFO. “CFOs are becoming more engaged and more involved in risk management within a business, and risk management is a process of understanding and applying organization-wide policies and procedures to manage financial risks,” Noah said. “But, more and more, CFOs are becoming involved in managing the nonfinancial risk.”

Those nonfinancial risks, as separate research has also found, include cyberthreats.

But Noah pointed out that financial managers aren’t going solo to combat this issue.

“Naturally, CFOs are the ones that the business turns to, because they have the disciplines, rigor and systems knowledge. And when you partner with IT, then you’re able to really let an organization become more secure from a cyber point of view,” he explained.

While a CFO may be including cyberthreats under his or her growing list of priorities, partnering with chief information officers and IT functions is what makes a CFO effective against cybercrime, Noah added.

This collaborative approach to fighting cybercrime is essential to understanding not only how the CFO’s role within a company is changing but what exactly this function can provide in the process.

“We, as CFOs, don’t want to claim we’re the tech experts,” Noah said. “But what they’re bringing to the table is expertise in being able to manage the risk and identify it, look at a company’s process flows and systems flows, and put in a process which detects and evaluates risk then mitigates it.”

‘Risk detection, risk evaluation, risk mitigation is what finance brings to the table.’ Click To Tweet

“This whole risk detection, risk evaluation, risk mitigation is what finance brings to the table,” he continued. “When you layer on top of that the technology expertise, that’s what makes the combination really powerful in defending against cybercrime.”

CFOs and CyberseCurity

CFOs are becoming more engaged in risk

management within a

business.From the Robert Half Finance &

Accounting blog, January 4, 2016

24

NOTICE OF ANNUAL BUSINESS MEETINGUndertheprovisionsofArticleVIoftheAlabamaSocietyofCPAs’bylaws,noticeisherebygivenoftheannualbusinessmeeting.ItwillbeheldattheAccountingConnectionsConferenceattheSheraton

BirminghamonJune9,2016attwelveo’clock.

NOTICE TO MEMBERSHIP:PROPOSED BY-LAW AMENDMENT

TheASCPABoardofDirectorsmetJanuary29,2016andunanimouslyvotedtosubmittomembershipaby-lawamendmentchanging

thedefinitionofAssociateMember.Essentiallytheamendmentwillmeanthatifyouhaveanemployeewhoisanaccountingprofessionalor

whoworkscloselywiththeaccountingprofession,paraprofessionals,accountingstaff,accountingfaculty,officeadministratorsormarketingstaffasexamples,especiallythosewhoattendcontinuingeducationcourses,theywillnowbeinvitedto

joinasassociatemembers.Thesenon-votingnewmemberswillbeabletoparticipateinallASCPA

activitiesandchannelsofcommunication.

BY-LAW AMENDMENT PROPOSED: 2.3 ASSOCIATE MEMBERS

TheBoardofDirectors,bywhateverprocedureitdeemsappropriate,mayconfermembershiponpersonswhoareactivelypursuingsittingfortheUniformCertifiedPublicAccountantexamoranyoneaffiliatedwiththeaccountingprofession.Associatemembershavenovotingprivileges;are

noteligibletoholdanyofficeintheSociety;andarenotsubjecttoArticles2.7.3and2.8oftheBy-Laws.

UPDATESNOMINATIONS

COMMITTEE REPORTTheASCPANominationsCommitteemetonMonday,January19,2016.MembersofthecommitteeincludeJohnBoles,

DavidBrown,BrianBarksdale,LowellBroom,ReneeHubbardandDonMcCleod.ThecommitteesubmitsthefollowingrecommendationsinaccordancewithAlabamaSocietyof

CPAs’bylaws.Eachnomineehasagreedtoserve,ifelected.

OFFICERS:ChairoftheBoard JameyCarroll,HuntsvilleChair-elect MarcHamilton,AndalusiaPastChair LowellBroom,Birmingham

ONE-YEAR TERM:KeinaHouser MontgomeryDennis Sherrin FairhopeTimSmith Mobile

TWO-YEAR TERM:Lynne Bozeman MontgomeryMichaelBrand AthensLisaMcKinney TuscaloosaMacaroy Underwood Birmingham

THREE-YEAR TERM:Brian Grainger BirminghamCherionSibley BirminghamLaineSpruiell Albertville

AICPACouncilRepresentatives,previouslyelectedbytheboardofdirectors:JohnShank(termOctober2014–October2017)BirminghamLamarReeves(termOctober2014–October2017)Mobile

RespectfullySubmitted,JohnBoles,CPAChair,2016ASCPANominationsCommittee

Matt Tucker, ASCPA Montgomery Chapter President, Rep. Martha Roby, Rep. Terri Sewell, Jeannine Birmingham.

25

YourboardofdirectorshasbeenveryengagedandheldtheirquarterlymeetingwithafullagendaonJanuary29.Herearesomeoftheissueswherediscussionhastranslatedintoaction.

1.TheboardwillpresenttomembershipabylawamendmenttoallowpeopleaffiliatedwiththeprofessiontojointheAlabamaSocietyofCPAs.TheamendmentwillbevotedonattheASCPA’sannualbusinessmeetingattheAccountingConnectionsConferenceinJune.Whatwillthislooklike?Itbasicallymeansthatifyouhavepara-professionalsoraccountingstaffworkingalongsideyou,especiallythosewhoattendcontinuingeducationcourses,theywillnowbeinvitedtojoinasassociatemembers.CanyouenrollofficeadministratorsormarketingstaffwhoneedaccesstoASCPAinformationonCPE,programs,volunteeropportunities?Absolutely.Theannualmember fee for this categorywill be$100,plus aone-time$25 registration fee.Thesenon-votingnewmemberswillbeabletoparticipateinallASCPAactivitiesandchannelsofcommunication.

2.Renewalfeeswillseeamodestincreaseof$10percategoryacrosstheboardfor2016-17.Wecontinuetochargethelowestduesamountofanystatesocietyinthecountry.AnnualduesnoticeswillbesentApril20,2016.

3.Theboardcontinuestomonitorthechanginglandscapeofpeerreview.Iamcurrentlyservingon the national peer review committee to give the ASCPAmaximum access to this ongoingdiscussionandtoprepareAlabamaCPAsforthechangesahead.Ifyouwishtoknowmoreabouttheevolutionofpeerreviewandhowitwillaffectyourfirm,pleasecontactme.Iamhappytosharetheexposuredraft.

4.Theroleofchaptershasbeenahottopicinthelastyearandmore.Chaptergovernanceandstructurewilladaptinthenextyeartostreamlineoperations.OurgoalistohavechaptersoffertheverybestofASCPAserviceswhilemaintainingtheirownflavorandopportunitiestoconnectlocally.

5.It’sbusyseasonforpractitionersandalsofortheAlabamaLegislature.ASCPAhasaTaxReturnDueDateConformityBillthatwillcorrespondtothenewfederal.Thereareseveralotherbillswhereweneedamendmentsornoaction. PleaseconnectthroughourKeyPersonProgram.Legislatorsprefertohearfromtheirvotersandwewillneedyourvoicethissession.

ThenextboardmeetingwillbeinlateAprilandweencourageyoutojotdownyourthoughtsandpassthemalongtomembersoftheboardofdirectorsortome.

JeannineJeannineP.Birmingham,CPA,CAE,CGMAPresidentandCEO

ASCPA2016

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MOVING UP &MAKING CHANGESWARREN AvERETT announced that nine individualshavebeenpromoted to members ofthefirm.HANNY AKL, CFE, CEPA is a member in the Birminghamofficeandleadsthefirm’stransactionadvisorypractice.Hesupportsclientsinallphasesof their business and transactionlifecyclesandworkswithawidevarietyofclients,includingprivateequity,closelyheldandpubliccompaniesaswellaslocalgovernments.JANGKEUN (PAUL) HAN serves as a Member in theMontgomeryoffice,andleadstheFirm’sNationalServiceLeaderofKoreanBusiness.Heprovidesmulti-disciplinaryservicestoKoreanownedbusinessesincludingauditing,taxationandstart-upconsultingontaxandbusinessincentivefilings.TIA S. LEvANDA is a Member intheFirm’sTaxDivision,andworksoutoftheMontgomeryoffice.Tia’spracticespecializesinmulti-statetaxreturnsandtaxresearch,andsheprovidestaxplanningforclientsintheretail,realestateand manufacturing industries.Shealsoserves on the Firm’s CommitteeforTaxBestPractices. YOGESH N. PATEL CFE is a Member in the Firm’s AuditDepartment,andworksoutofboththe Birmingham and Atlantaoffices.Yogeshserves a variety of clientsbyprovidingassuranceservices,

MEMBER NEWSbusiness advisory and forensicaccounting.Industriesofexpertiseincludehealthcare,non-profit,manufacturinganddistribution,andprofessionalservicefirms. JARED SHARP is a Member intheHuntsvilleoffice,Jaredservesclientsintechnology,biotechnology,governmentcontractingand manufacturing industries.HespecializesinR&Dtaxcredits,accountingforincometaxes,FIN48andstateandlocaltaxissues.JaredisalsoHuntsville’sService Area Leader for theirTaxDivision.

ASHLEY JOHNSON, TABITHA LEE and DAN JOHNSONhaveallbeenpromoted to manager at JamisonMoneyFarmer. RACHEL AARON, ANDREA ARMSTRONG and BETSY JERNIGAN are now supervisor accountants.

ASHLEY JOHNSON is now a manager in JMF’sestateandgifttaxdepartment,withtenyears’tenureatthefirm.Johnson is a graduate of theUniversityofAlabamawith both undergraduate andmaster’softaxdegrees. TABITHA LEEisaQuickBooksCertifiedProAdvisorand a manager in the taxdepartment.SheisalsoagraduateoftheUniversityofAlabamaand began at JMF in 2004.

DAN JOHNSON is a new manager,transitioningto JMF in 2014 as part of theJessup,Ingram,Burnsand Associates merger. Hispreviousexperienceincludesworkingforanon-profitinTurkeyandfiveyearsatamajorregionalaccountingfirminChicagoland.DanhasaBachelor’sDegreeinAccountingfromSouthernIllinois,andaMaster’sDegree from Northern IllinoisUniversity.JohnsonisanativeofOakwoodHills,Illinoisandhasabachelor’sdegreefromSouthernIllinoisUniversityand his master’s degree fromNorthernIllinoisUniversity.

RACHEL AARON began fulltimeatJMFin2010asastaffaccountantintaxandaccountingafterbeinganinternduringthe2009taxseason.SheisarecentgraduateoftheAlabamaSociety of CPAs Leadership Academy and has undergraduate and master’s degrees from the UniversityofAlabama.

ANDREA ARMSTRONG workedasaninternfor

JMF during the 2011 and 2012taxseasonsandthenjoinedthefirmfull-timeasastaffaccountantin October 2012. Andrea iscurrentlythePresidentoftheWestAlabamaChapterofAccountingand Finance Women’s Alliance,andisamemberoftheASCPAYoungCPACabinet. Armstrong is another UA graduate with both undergraduate and master’s degrees.

BETSY JARNIGAN beganfulltimeatJMFin October 2011 as a staffaccountantintaxandaccountingafterworkingasaninternforJMFduringthe2011taxseason. She is on the UniversityofAlabama’sAccountingAlumniYoungProfessionalsBoardandalsoservesontheExchangeClubofTuscaloosa’sBoardanditsFoundationBoard.JerniganisalsoagraduateoftheAlabamaSocietyof CPAs Leadership Academy,andtherecipient of the ASCPA’s 2014OutstandingYoungCPAAward.She,too,isagraduate of the University ofAlabamawithbothundergraduate and master’s degrees.

THE CITY OF BAY MINETTE has hired TAMMY S. SMITH as itsnewfinancedirector.Priortojoiningthecity,Smith spent 12 years as a senior accountant/auditorwithKubina,Hayles&AssociatesinBayMinette.ShealsoheldpositionsatFaulknerStateCommunityCollege.

Smith is a graduate of the University of South AlabamaandhasbeenaCPAsince1996.

CARR RIGGS & INGRAM has two new partners in Alabama:

MATTHEW TAYLOR providesattestation,compliance,andconsultingservicestoconstructionentities,aswellasanumberofgovernmentalentities.Additionally,hehasspecializedhealthcareexpertiseinthelong-term care industry whereheprovidesaudit,review,compilation,andconsultingservices.HeisintheOneontaoffice.

HEATHER BARBER providesaudit,compliance,andconsultingservicesprimarilytofinancialinstitutions.Sheassistscommunitybankswithcomplianceservices,loanandBankSecrecyAct(BSA)reviewaswellasinternalandexternalaudits.ShealsoprovidesspecializedexpertisewithSECcompaniesandFDICIAconsultingengagements from the firm’sBirminghamoffice.

TheshareholdersofRichard,Harris,IngramandBozeman announced the promotionofSCOTT LEE toprincipalwiththefirm.

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Lee,whojoinedthefirmin2006,activelypracticesinthefirm’staxandauditsectors,withemphasisinauditsoflocalcityschoolboards,not-for-profittaxandaudit,andtaxservicestosmallbusinessesandindividuals.Hereceivedhis undergraduate and graduate degrees from Auburn University Montgomery.

PEARCE, BEvILL, LEESBURG, MOORE announced that THOMAS C. ZOEBELEIN has been promoted to director of taxresearch.Zoebeleinblends28yearsofindustryexperiencewithsixteenyearsinpublicaccounting.Heisactiveinseveralaccountingandbusinessorganizations,includingserving on the state and federaltaxcommitteesfortheBusinessCouncilofAlabamaandchairingtheASCPAStateTaxCommitteeforthepastfiveyears.HehasauthoredseveralarticlesontaxationthathavebeenpublishedinTuscaloosaBusinessInkandtheBirmingham Business Journal.Additionally,hewritesquarterlytaxarticlesfortheAlabamaSociety of CPAs.

Whileinindustry,Zoebeleinservedonnationaltaxcommitteesfor the American ForestryPulpandPaperAssociation,AmericanMiningCongress,NationalCoalAssociation,andtheAmericanTextileManufacturersAssociation.ThesegroupsworkcloselywithCongressonfederal

taxpoliciesaffectingtheirindustries.

Zoebeleinjoinedthefirmin2004.Heholdsanundergraduate degree in accountingfromVillanovaUniversity and a master’s degreeinaccountingtaxationfromIonaCollege.

TERRI LYNN WALLACE has been promoted from supervisor to manager for BorlandBenefield,P.C.ofBirmingham.Wallacewillprovidemanagementskillsforourclientsintheauditandtaxdepartments.

CONGRATULATIONS

ASHLEY TAYLOR was namedYoungProfessionaloftheYearbyEMERGEMontgomery! at a ceremony on February 3.TaylorisamanagerinJacksonThornton’sBusinessValuationandLitigationConsultinggroup.Shewasselectedfromapoolofnomineeswhowerejudgedontheircommitmenttooverallexcellence,leadershipintheirprofessions,commitment to their community,andleadershipandinnovationthroughprofessionalandpersonalgrowth.SheholdsABVandCVAdesignationsandis a graduate of Auburn Montgomery’s MBA program.

TheAndalusiaChamberofCommercewelcomedMISSY PIERCEofRabren,Odom,Pierce&Hayestotheir board of directors inJanuary.Shewillservea four year term. Pierce has18yearsofexperienceconcentratingintax,auditandbusinessconsulting.SheholdstheCGFM,CITPandCGMAcredentials.

WarrenAverettannouncedthat MAx KOSS,DirectorofInternationalTax,hasbeennamed to the Advisory BoardoftheAlabamaSmallBusinessDevelopmentCenter(ASBDC).TheASBDCstrivestoenhance economic growth inAlabama,byprovidingmanagementandtechnicalassistancetosmallbusinesses.TheASBDCfacilitatesrelationshipsbetween community organizations,local,stateandfederalagencies,establishinganetworkof

resources for the business community.TheASBDChasinitiativestoprovidecounselingandtechnicalassistanceforsmallbusinesses,governmentprocurement and internationaltrade.Kosshas26yearsofinternationaltaxexperiencetooffertheprogram,andhisprimaryfocusatWarrenAverettisidentifyingandresolvinginternationaltaxandbusiness issues. As an advisory board member fortheASBDC,KosswillhelpdevelopstrategiestocreateandgrowsmallbusinessesinAlabamaandadvisetheNetwork’sleadership.Heisservingathreeyearterm,whichbeganJanuary1,2016.

COMMUNITY NEWSMACHEN MCCHESNEY announcedtheacquisitionofWolf&Taunton,aMontgomeryaccounting

firmeffectiveDecember1,2015.The60yearoldAuburn-Opelikafirmmadetheacquisitioninrecognitionofthegrowing needs of its clientbase.

“Thisopportunitypresenteditselfthrough our relationshipswithMarcusWolf,analumnusofAuburnUniversity,andBobbyTaunton,analumnusofbothAuburnHighSchoolandAuburnUniversity,”saidmanaging partner MartyWilliams.Wolf&Tauntonbeganofferingprofessionalservicesin Montgomery in 1987andwasformedbyTaunton,whowillcontinuetoheadtheMontgomeryoffice,andtherecentlyretiredMarcusWolf.

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TheAICPAnotedinTheBusinessCaseforDiversityandInclusionthat“Inorderforourprofessiontoremainrelevantinanever

evolvingglobalmarketandtoremaincompetitivefortalentandforclients,itisimperativethatweattractandvaluediversetalentandenable that talent to attract and valuediverse clients.” TheAICPAasserted that a concerteddiversity and inclusion effort isa “business imperative” to equip the accounting profession forsignificantdemographicshifts,increasedminoritybusinessesandbuying power, and broaden workforce diversity. Additionally, arecent study by Bersin for Deloitte found that “companieswiththemostmatureandinclusivetalent-managementsystemstendtoproducebetterbusinessresults.Thesecompaniestendtohavemorecashflowperemployeeandaremorelikelytobeinnovators

intheirindustries.”TheASCPAhasrecognizedtheimportanceofinforming,engagingandsupportingourmembershipthroughthedevelopmentandexecutionofdiversityandinclusionstrategies.

InDecember2015,TheASCPAformedacommitteetochampiondiversity and inclusionwithin Alabama’s accounting community.The15memberASCPADiversityandInclusionCommitteeconsistsof key ASCPAmembers and supporters from public accounting,businessandindustry,thepublicsector,andacademia(collegiateand secondary). The committee’s objectives are aligned withtheAICPANationalCommissiononDiversityand Inclusion’sgoalof helping member, firms, and organizations “succeed in theirdiversity and inclusion efforts to attract and retain” a diverseworkforcewithaninitialfocusonethnicity,race,andgender.

A R E P O R T F R O M T H E A S C P A ’ S N E W D I V E R S I T Y A N D I N C L U S I O N C O M M I T T E EEmma Cole, CPA, Chair

Moving in The RighT DiRecTion

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YOUR PRACTICE WANTED:WeareNorthAmerica’sleaderinpracticesales.Ifyouarethinkingaboutselling,contactustodayforaconfidentialdiscussion.

PRACTICES FOR SALE: •HooverCPApractice*Sold*•SouthernMiddleTNCPAnearHuntsville*Sold*•CPANortheastofKnoxvillegrossing$190K*Available*•Murfreesboro,TNCPA*Sold*•SouthofNashvilletaxpractice*Sold*•SouthofKnoxvilleCPApractice*Sold*•CentralMSCPA*Sold*

For more info, contact Lori Newcomer, CPAat 888-277-6040 or [email protected].

AUDITOR SENIOR OR SUPERvISORLargepubliccompanyinBirminghamseeksInternalAuditorSeniororSupervisorwithaminimumof2yearsofauditexperienceor4yearsofrelevantbusinessexperience.PublicaccountingfirmexperienceisstronglydesirableandbilingualinSpanishisaplus.

Send cover letter and resume [email protected].

SELLING IN 2016? READY TO BUY A FIRM?Considering selling your CPA firm this year? Knowing what yourfirm isworth is the first step. Contact us TODAY to receive a freeno-obligationmarket analysisof yourfirm.AccountingBizBrokershasbeenofferingpersonalizedbusinessbrokerageservicestoCPAsforover11yearsandweknowyourmarket.Ourprocessisstrictlyconfidential.Visitourwebsiteatwww.AccountingBizBrokers.comtorequestadditionalinformationaboutthesalesprocess.

CURRENT LISTINGS:•MontgomeryAreaGross$40k-SOLD•VirginIslandsGross$480k

Kathy Brents, CPA, CBICell501.514.4928Office866.260.2793Kathy@AccountingBizBrokers.com

CONTROLLERCity of Opelika seeks Controller with a minimum of 10 years ofrelatedexperience.RequiresCPALicenseandbachelor’sdegreeinaccounting,financeoracloselyrelatedfield.Master’sinaccountingor finance preferred. To apply, go to www.opelika-al.gov. EOE M,F,v,D. Position open until filled.

CLASSIFIEDSThecommitteehasidentifiedthefollowingobjectivestochampiondiversityinAlabama:

• LeveragethesuccessofexistingASCPAinitiatives.

• Fosterstakeholderengagementandbuildeffectivepartnerships withotherorganizationstosupportdiversityandinclusioninitiatives.

• Provideresourcestohelpmemberfirmsdevelopstrategiestocreate awareness,addressunconsciousbiases,expandtheirdiversity “toolbox,”andincreasesupportfordiversityandinclusionefforts.

• ProposestrategiestopromotetheCPAbrandandincrease awarenessoftheaccountingprofessionandopportunitiesamong studentsinK-12andcollege(includingcommunitycolleges).

• Identifyopportunitiestoincreasethenumberofminority studentssittingforandpassingtheCPAexam.

• Developprogramsandresourcestonurturestudentsthroughthe talentpipelineandfacilitatetheirengagementwiththeprofession.

• Identifyandaddresschallengestotheretentionand advancementofadiverseworkforce.

•Developkeymetricsandmilestonestodefine,measure,and communicatecommitteeobjectivesandoutcomes.

It is important that the ASCPA membership is actively involved in theachievement of the identified objectives. Members are encouraged tovolunteer to serve as guest speakers, mentors, hosts, or sub-committeemembers. Members are also asked to consider providing resources orsponsorship fordiversityand inclusion initiatives. Additionally,members’input, recommendations, and knowledge are important assets to theachievementof theobjectives.Please feel free to contactany committeemember or me at [email protected].

ASCPA DiverSity AnD inCluSionCommittee memberS

Jeannine Birmingham, CPA ............................................President and CEO, ASCPA

Jorja Bradford, CPA ...........................Assistant Professor, Alabama State University

Courtney Bruce .................Revenue Examiner at Alabama Department of Revenue

Boyd Busby, CPA .. Executive Director, Alabama State Board of Public Accountancy

Emma Cole, CPA ...................Lecturer of Accounting, Troy University Montgomery

Connie Sheppard-Harris, CPA ...............................Sheppard-Harris and Associates

Courtnie Harris, MBA .......................................................... Instructor, Miles College

Keina Houser, CPA ................................................... Tax Manager, Jackson Thornton

Jasmine James ... Senior Accounting Student, Alabama State University and ASCPA Spring Intern

Jessica Juliano, CPA ...................................Executive Recruiter with Warren Averett Staffing and Recruiting

Audrey Marshall ........................................... Business Teacher, Auburn High School

Dr. Jenice Prather-Kinsey, CPA Professor at University of Alabama at Birmingham

David Salters ............................... Director of Sales and Operations, Warren Averett Staffing and Recruiting

Norris Watkins ... Business and IT Division Chair, Lawson State Community College

Jaylon Williams ..Accounting Student at UAB and Tax Intern at Lovoy, SummervilleShelton

Brianne Wilson, CPA ......... Assistant Professor of Accounting, Huntingdon College

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AT THE NEXUS OF ACCOUNTING

AND SOFTWARETECHNOLOGY

Building acareer fromtwo passions

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Over the last 16 years, I have been able to work with a lot of companies in several industries to find specific solutions for their software technology needs. For me, it’s not only about finding out what an executive or a manager needs to run the business, but also working with the end users to meet the company’s objectives. The side benefit of working with different industries (and a lot of very smart clients) is that we have developed several best practices. These evolved from our own innovations, and by observing our clients find creative ways to solve problems. Solving problems is certainly a characteristic of being a CPA. It just so happens that I’m looking at technology issues for clients instead of serving them in a more traditional accounting fashion. I’m living the dream that I had from a very early point in my life by melding my passion for both accounting and software technology. It became a more conscious choice as my career developed.

During my senior year in high school, I was able to take both a bookkeeping class and a programming class. Learning accounting processes, along with how to prepare and interpret financial statements, not only interested me but was a natural fit. But I also liked the idea that anything could be improved or automated through the right software and programming.

At the University of Southern Mississippi I majored in accounting and minored in management information systems. It just seemed a natural fit to merge these two interests together. Fast forward to my experiences with a regional laboratory, a multi-location urgent care/medical care practice and later on with a hospital. I gained experience about reporting, about mergers and acquisitions and a ton of day-to-day accounting while acting as controller and vice-president of finance for these organizations.

Every company I worked with always called upon me when they needed help extracting data from their accounting software or if they did not know how to use the software! I don’t know if I had “understands software technology” painted on my forehead, but I became the go to guy everywhere I went. It occurred to me that it would be great to assist companies in making the most of their software investment as my full-time career.

I had an opportunity to work with a former Microsoft Dynamics GP Partner on accounting/ERP software. I led their Microsoft Dynamics GP team for several years before starting my own business, DLD Business Solutions, Inc. This is where my interests in accounting and technology really came together.

Technology is continuing to change at such a rapid pace. Our team members at DLD must invest in education and specific software certifications just to keep ahead. It always surprises our clients how much we spend in this area. This trend is not going to reverse and new products, along with enhancements, are introduced every day. It’s

critical for companies to have the right partner to advise them on software business decisions. Once the purchase is made, continued software training and support is vital. Using software to integrate multiple systems is a great way to streamline, given that we still see companies entering data as much as 5 times! In today’s environment, companies cannot afford to be inefficient.

My experience as a CPA has given me insight into the fact that clients want products to help them seamlessly serve their customers and business objectives. They don’t want to be bogged down with the stress of choosing software and managing that software; they want to conduct their business. Accounting firms offer sound accounting advice and infrastructure (hardware) companies are much more suited to consult on servers, disaster recovery and several other services. That’s why we have focused on what we do best. We act as the third leg on the stool by partnering with our clients’ accountants and external IT team. This allows us to be able to offer the best of implementation and support the client’s accounting and ERP software. I’ve been doing this now for 16 years and it is always gratifying for me to solve complex business problems by first understanding our clients’ pain points. Being an experienced CPA gives me the expertise needed as the first step in solving an issue with technology.

We rely - a lot - on continuing education from ASCPA programs. Whether it’s online webinars, industry conferences or technology conferences there are subjects which expand my own professional development and get absorbed into how we run DLD Business Solutions. We always see one or more of our clients at these education events, and meet other CPAs to collaborate with on current issues, such as ACA compliance. We have made several contacts who we can call with a question. This is invaluable and such a gift. We have access to some of the most successful professionals, with the brightest minds, almost around the clock. What a benefit to ASCPA membership!

In the last few years I’ve become more involved with the ASCPA for all the reasons mentioned above. That relationship has reinforced for me that my being a CPA, able to combine accounting and my passion for technology, has put me in the right place at the right time.

DENNIS L. DAYCPA, CITP, CGMA

DLD Business Solutions, Inc.

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Corporate America thrives because of successful negotiations. And not everynegotiation table has a client on the otherend. Openingnegotiationswithemployees,giving them a voice in the direction of thebusiness,takesthesuccessofnegotiationstonew levels. Whatmakes somenegotiationssuccessful and others dead in the water?Conductingasuccessfulnegotiationrequirestheuseofsixmajorskills.

THE 6 PRINCIPLES OF IMPROvISATIONThesesixskillswillensureeverynegotiationhas the potential to end with a positivesolution:

1.Takeyouregooffthetable.2. Respect the other party.3.Beinthemoment(focus).4. Listen to the other party’s needs & wants.5.Adapttothesituation.6.Yes,and…

Thesestepstrulyhelpinremovingemotionsfromthetable. Heatedemotionscancausenegotiations to shut down. They aremorelikely to end in a stalemate with wastedefforts. AnthonyK.Tjanwrote inaHarvardBusinessReviewblog,“Timeandemotion—theseare thetwothingsmostoftenwastedduring a negotiation.” Andhe is very right.Wetendtoreactemotionallyandnegativelytoanypointsofnegotiationthatopposeourownagenda.Andthatwastestime.Whenourgoalsforanegotiationaresofirmlyanchoredthat we cannot budge, it becomes hard toseeanycommongoalasasolution.Instead,emotions kick in, and egos inflate—and weceasetolisten.Allwehearisourownvoiceinourheadtryingtofindawaybacktowhatwe want.

SKILLFUL NEGOTIATION IS ROOTED IN IMPROvISATIONTom Yorton was once in the corporateranks before becoming CEO of Second CityCommunications, the business solutionsdivision of the world-renowned comedycompany, The Second City. He had this to

say in a recent Business Innovation Factoryarticle, “But my experience – and in fact,my scars – are from bumping up against the same organizational hurdles that improv isso effective at helping companies get over– challenges that include connecting withcustomers, engaging employees aroundchange,movingintonewmarkets,innovatingnewproductsandservices,workingwithoutascript.”

Allof theaspectsofdrivingpositive changeinside the company depend on how wellleaders in corporateAmerica can negotiate.That equates to how well businessprofessionals can handle blocking. Blockinghappens every day. It is something brought to the table that was unexpected. It haltsforward momentum. It is something that doesn’t neatly fit inside the box of youragenda.

Daena Giardella teaches an improvisationalleadership class at MIT’s Sloan School ofManagement. She spends an entire lessonon teaching how to avoid using the most common block, the “yes, but.” In an NPRarticle, she points out, “Even though yousay, ‘Yes,’ the but says, Yeah, but that’s notreallyvalidbecausehereisthebetterpoint.“Negotiations canquickly come toagrindinghaltwhen“yes,but”comes to the table. Itiswhenemotions getheatedandtimegetswasted.

Time to remember the 6 principles of improvisation!

Listen to the other party’s needs. What are they really sayingwhen theyblock yourproposal? Be adaptableby taking your egooffthetable.Takeadeepbreathifyouneedtoandthenletthenextwordsthatcomeoutofyourmouthbe“Yes,and…” Asuccessfulnegotiation is birthed from being able torebound, to take the blocks and build withthem. That is how you connectwith otherpeople.

Have you ever watched preschoolers playwithblocks? They take turnsstacking themon top of each other until it gets so high itjusttopplesover-ortheyliketowatchitfallandknockitoveronpurpose.Butthepointis thatbothof themhaveanagenda. Theyeachwant to pick up a block and put it onthetowerandeachoneprobablyhasanideaaboutwhatthetowerwilllooklike,buttheykeepbuildinguntiltheycan’tbuildanymore.

Wearemorelikelytosucceedinnegotiationswhen both parties can envision a commongoal.Andthatiswhatimprovisationteaches.Tosetasidepersonalagendaandegoandtakewhatever the other person gives you and go withit.Thegluethattiesitalltogetheristheprincipleof“Yes,and…”Successfulpeopleallintuitivelydothis.Theyjustdon’tnecessarilyrealize that they are using improvisation intheirdailylives.

Tosucceedinnegotiations,weneedtodropour agendas long enough to truly listen—and with respect for all involved. It is trueforformalnegotiationsaroundaconferencetable and is theway to success in the dailynegotiationsoflifeandcareer—duringachatwith thebossorwithone’s spouse,orwitha child. This is the kind of straight talk wecancultivatethattrulywillmakethebiggestdifference.

Peter A. Margaritis, CPA is a speaker, educator, trainer, humorist, and self-proclaimed chief “edutainment” officer for The Accidental Accountant™. Partnering with the Business Learning Institute, his firm helps accountants and other business leaders to increase their profitability by strengthening their business success skills and improving morale through better communication. He is a member of the Ohio Society of CPAs, Georgia Society of CPAs, National Speakers Association, and the American Institute of CPAs. Peter is also the Author of Improv Is No Joke: Using Improvisation to Create Positive Results in Leadership and Life. www.theaccidentalaccountant.com

________________________________Peter A. Margaritis, CPA

SuCCeSSFuL neGotiAtinGin

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AICPA ProPoses exPAndIng JoIntVenture wIth CIMALegendary investor Warren Buffett has a saying: “Someone’s sitting in the shade today because someone planted a tree a long time ago.” This quote underscores the importance of anticipating and preparing today for the opportunities and challenges of tomorrow.

The CPA profession has a long history of doing just that. Alabama Society of CPAs and the American Institute of CPAs (AICPA) currently are working on a wide variety of initiatives to enhance the relevance and vibrancy of the profession far into the future. These initiatives include programs to promote the value of CPAs as trusted business advisors, enhance audit quality, broaden the definition of attest, help firms identify and remedy issues during A&A engagements, evolve the Uniform CPA Exam, attract the next generation of talent, and meet the information and educational needs of members in public accounting, business, government and specialized services.

In response to the needs of members working in corporations of all ownership structures and sizes, the AICPA formed a joint venture with the Chartered Institute of Management Accountants (CIMA) in 2011. CIMA is the world’s leading and largest professional body of management accountants. Founded in 1919, CIMA represents more than 227,000 members and students operating in 179 countries, working in industry, commerce and not-for-profit organizations. In January 2012, the two organizations launched the Chartered Global

Management Accountant (CGMA) designation. The number of CGMA designation holders is now more than 150,000 worldwide, with over 50,000 in the U.S.

Now, the AICPA and CIMA are beginning a conversation with their respective members about a proposal to integrate their operations, strategy and management through a newly formed association. The AICPA would continue to serve members and protect, promote and grow the CPA profession. The new association aims to maximize efficiencies and provide a broader platform for further enhancing advocacy, promoting public and management accounting on campuses and with employers and clients, and developing new research and educational offerings. According to Arleen Thomas, CPA, CGMA, AICPA Senior Vice President-Management Accounting and Global Markets, “A presence in Europe will dramatically increase our ability to advocate for members on international matters that are increasingly impacting the U.S. securities system. In addition, the proposal would enable the profession to achieve even greater influence domestically and internationally and broaden the appeal of accounting to the next generation of professionals.”

Unwavering Commitment to the CPA | “Our strategy is built on the power of ‘And,’” said Barry C. Melancon, CPA, CGMA, AICPA President and CEO. “The AICPA would continue to maintain an unwavering commitment to the CPA, promote high standards for

ethics and quality, and protect the public interest and the core values of the CPA profession. What we would gain through this new association with CIMA is the further professionalization of management accounting. Financial reporting is stronger when we drive quality in both public and management accounting.”Trends Driving Need for Evolution| The CPA profession has a history of anticipating – and adjusting to – changes in market demands. The profession has grappled with and developed solutions to address increasing complex technology, specialization, and evolving business structures; these drove such evolutionary steps as the computerization of the CPA Exam, non-CPA firm ownership and the adoption of cloud computing solutions.Current trends and challenges on the horizon have been carefully assessed by the AICPA as part of its ongoing strategic planning process. With record membership numbers and the CPA reputation at the highest level, the AICPA believes that the time is right to pursue a proposal that will better enable the profession to tackle such factors as:

The growing worldwide talent shortage and associated demand for ever higher levels of specialized knowledge and services

Significant demographic and generational shifts | The increasing number of accounting graduates bypassing professional affiliation and the associated commitment to a professional code of conduct

The shift of economic growth toward Asian and emerging markets

The greater international mindset of today’s graduates and the overall trend toward more international connectedness and interdependencies

Regulatory impact coming from Europe and other parts of the world that are affecting businesses in the U.S.

The need for finance professionals, facing an increasingly competitive job market, to differentiate themselves from their peers and demonstrate greater strategic management and business partnering skills

Building on Existing Joint venture’s Success | Approximately 50 percent of most state CPA society and AICPA members work in businesses of all sizes and ownership structures. Creating the CGMA offered these professionals a complementary designation and enhanced resources. Since the designation’s launch, the American Institute of CPAs and CIMA have delivered nearly 120 reports and tools plus online events and career development resources to members seeking to increase their knowledge and hone critical skills for the future. The organizations also developed the CGMA Competency Framework and the Global Management Accounting Principles. In addition, so that members and employers could better assess and address accountants’ skills and competency gaps, the organizations launched the AICPA | CIMA Competency and Learning platform. The tool also analyzes

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It’s what CGMA stands for.Officially, of course, it’s Chartered Global Management Accountant. A new designation representing accomplished professionals that

drive and deliver business success, worldwide.

Find out more at cgma.org

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Christy Lee WhitakerFebruary19,1962-January13,2016|Madison,Alabama|Certificate#6618

Whitakerwas born in Biloxi to an Air Force family. Her lifewas filledwith joy, adventure,wonderandsomuchlove.ShewasgraduatedfromJudsonCollegewithanaccountingdegreeand earned a MAcc from Auburn.

Shemet andmarried ColonelMarvinWhitaker inHuntsville in 1985 and she remained hisconstantcompanion,bestfriendloveofhislifeandmothertotheirtwochildren.WhitakerisrememberedasafaithfulandincredibleArmywife,servingsoldiersandtheirfamilieswithloveanddedicationformorethan29years.

Whitakerwasapreciousandkindspirit,enjoyingtraveling,readingandspendingtimewithfamilyandfriends.Sheasanavidrunnerandranmarathonswithherhusbandandrunningbuddies.ThefamilyhasaskedthatanymemorialsbemadetotheTributeFundestablishedinhernamethroughtheLUNGevityFoundationatLUNGevity.org.

CharLes Lester “skip” MCQuaidDecember5,1942-January14,2016|Geneva,Alabama|Certificate#9638

McQuaidwasborninBostonandservedintheCoastGuardforfouryears.Formorethan25yearsheownedandoperatedTheMcQuaidGroupinGenevaandwasknownasthe“taxman”.Helovedhisfamilyverymuchandwasinvolvedinhischildren’slives,especiallyasacoachfortheirballteams.HewasadiehardAuburnfanandbecameaMississippiStatefanoncehehadagranddaughterattendingschoolinStarkville.Heleftbehindfourdaughters,oneson,asister,19grandchildrenandthreegreat-grandchildren.

REMEMBERINGpublic accounting skills, such as those related to assurance as well as employee benefit plan and governmental audits.CGMA designation holders also have access to the CGMA Magazine, the CGMA Finance Impact Tool, numerous reports and case studies on best practices, and the Harvard ManageMentor online learning and performance support resource program. The website cgma.org is the hub for all of these resources and more.

Benefits of the Proposal | “We are supportive of the direction the AICPA Board is recommending,” said President and CEO Jeannine Birmingham. “The changes this profession faces today are greater than ever. To preserve our relevance and stature, the profession needs to embrace change and consider innovative ways to better anticipate, reflect and lead. The work between the AICPA and CIMA has contributed greatly to the professionalization of management accounting, and that is much needed today. The proposal would bring together the entire accounting profession and extend the influence of a CPA-led accounting profession in the U.S.”Strengthening the bond between the two organizations would streamline resources and create efficiencies to help both organizations move faster to market and produce content with broader perspective, especially on international business issues, which are increasingly impacting CPA firm clients. In particular, the AICPA cites the gains in advocacy that could be realized when speaking on behalf of more than 600,000 current and next generation accounting professionals. The association of the AICPA and CIMA would form the most influential body for the accounting profession, within the U.S. and globally, advocating on tax, audit, financial reporting and other issues important to members.

What’s Next? | Gaining member insights into the AICPA and CIMA evolution is critical to helping the Institute’s governing Council determine its next course of action. Council will assess member feedback and consider authorizing a member ballot in the spring. Moving forward would require a vote by members, with a majority of those voting supporting the proposal. CIMA has a similar requirement and timeline.

Members are encouraged to visit aicpa.org/horizons to find out more about what they could gain from a deeper relationship with CIMA and provide feedback on the proposal.




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