ASCPA Magazine April 2015 by Alabama Society of CPAs

ALABAMA CPA MAGAZINE APRIL 2015

BUSINESS AND INDUSTRY ISSUE

THE ALABAMA CPA MAGAZINE Alabama Society of Certified Public Accountants P.O. Box 242987 Montgomery, Alabama 36124-2987 1-800-227-1711 334-834-7650 www.ascpa.org OFFICERS Don McCleod, Chair Dr. Lowell Broom, Chair-Elect Renee Hubbard, Past Chair BOARD OF DIRECTORS James R. L. Carroll Caitlin F. Glass Kate J. Ham Paul Marcus Hamilton M. Buddy Johnsey Jason L. Miller Michael C. Reibling Gregory E. Sellers Dennis E. Sherrin Rachel M. Taylor AICPA COUNCIL MEMBERS Don McCleod

Message from the Chair... I can still remember, as a newly-minted graduate of the University of Illinois, the feeling of excitement that I had when I was offered my first job. It was with a company in the industrial supply distribution industry. As a financial analyst, I was assigned to a talented team of highly motivated rising stars who all seemed, like me, to have had their minds shaped by a graduate business program’s constant drum beat of “you must maximize shareholders’ value”. I remember how, as the youngest member on the team, I was assigned the task of developing a break-even analysis for each of our branch store locations. To me, it was the coolest work ever. I remember many of the conversations that I had with my teammates. They shared with me their stories about becoming a CPA and how it prepared them to enter the world of business and industry. I remember how they made me realize how valuable a CPA was as a financial professional who lived within the complex world of business strategy and operations. It was indeed a wonderful time of enlightenment. While my time in industry led to the discovery that becoming a CPA would provide me with the transferable skills needed to perform well, the Alabama Society of CPAs has always known that our most important credential says a lot about our other equally important designations. This is why I’m so excited about how the Alabama Society of CPAs is working hard to support members in business and industry. For example, in May the ASCPA will hold the Woman’s Summit, which focuses on helping our members to understand how to properly feed their time, energy and brainpower for business success. This event will feature, along with other speakers and guests, Ms. Tommye Barie, chair of the American Institute of CPAs. Through events like this and others, the ASCPA is doing so much to support our members; fostering an environment which continues to inspire greatness in financial leaders within business and industry. Lastly, we know that by being an organization that steadfastly stands true to our mission of promoting the interests of our members in business and industry, the ASCPA will continue to be inextricably tied to a greater legacy of outstanding service to the business community. In closing, today as a not-so-newly-minted chairman of the Alabama Society of CPAs, I believe that within all businesses, both large and small, can be found the strength of our members. Our members are working diligently every day to make our business and industry communities even better. They are indeed the “backbone of our business communities”, and for this I humbly say, thank you for all that you do!

E. Lamar Reeves John P. Shank Past Chair, AICPA The Alabama CPA Magazine is published by Alabama Society of Certified Public Accountants as a membership service to Society members. Views and opinions appearing in this publication are not necessarily endorsed by the ASCPA. The deadline for submitting materials for publication is the first of the month preceding issue date.

Jeannine P. Birmingham, CPA, CAE, CGMA President and CEO Diane L. Christy, Editor

Frank Jenkins, III, CPA is the Entrepreneur-inResidence at the Montgomery Small Business Resource Center. Photo courtesy of the Montgomery Business Journal

GR WTH It’s what CGMA stands for.

A new designation representing accomplished professionals that drive and deliver business success, worldwide. Find out more at cgma.org

Jimmy L. Williamson,

THE ALABAMA CPA MAGAZINE

BUSINESS AND INDUSTRY

KNOW WHERE YOU STAND (FOR FREE)

Entrepreneur in Residence counsels Small Business Resource Center clients by David Zaslawsky

lients at the Montgomery Area Chamber of Commerce Small Business Resource Center (SBRC) received an email about assessing their company’s financial position at the midway point of 2014. That email reminded the incubation clients and the co-working space clients to: • Explain signification differences from budget plans for sales and expenses. • Determine if the cash position is at a comfortable level, and if not, find out why. • Determine the accounts receivable and if the number is within industry standards.

The email went on to say: “These are only some of the assessments that will help you understand where your business has been and where it appears to be headed. If you are unable to perform one or more of the assessments listed above because your accounting system is not producing the required information or you are unclear as to how to accomplish please contact your accountant or me.” The “me” is Frank A. Jenkins III, CPA, who has 35-plus years of experience in the financial industry; was an accounting professor; and has a master’s degree in business administration Frank Jenkins from the Wharton School of Finance at the University of Pennsylvania. He is the Entrepreneur in Residence at the Small Business Resource Center. He is the go-to expert in financial matters and his advice is free to SBRC clients. He has been serving in this role for nearly four years and in return for his services receives free office space. “Since my forte is accounting, I provide an accounting platform [to explore a business’s] accounts structure; and explain the kinds of things you need to start a business,” Jenkins said. He said many clients have accountants and he is careful not to impact that relationship. He said sometimes clients will ask him questions because his advice is free, but he does remind the business owners to talk to their accountants as he did in the above email. He works with clients on record keeping, understanding financial statements, choosing THE ALABAMA CPA MAGAZINE

an entity type, starting a business, forming a business plan, raising capital, and funding a business. Jenkins, managing director of Jenkins & Associates, said, “As entrepreneurs, you have to be aggressive and think that you have the background and knowledge to run your business.” But not all small business owners understand the financial aspects, which can be complicated, or know how or where to seek funding or understand the difference between an employee and an independent contractor. A favorite story of his is of a banker asking a business owner, “How did you do last year? What were your revenues and expenses?” Jenkins, who served on the Aliant Bank Board of Directors for 15 years, said, “The banker doesn’t want to hear you use this terminology: ‘Um, about.’ I help them realize that you have to understand where your business is and where’s it’s going. The ‘um

about’ method is not a good approach to get funding for your business.” He talks to clients about the importance of accounting software so a business owner can track operating results. “It’s important to know your working capital position at all times,” Jenkins said. Other issues include how to set up the company, business licensing, and tax forms. One of the issues he deals with is business owners who co-mingle funds. “People will start a business and, before they are legally organized, they will run their operations out of their personal accounts.” He said some entrepreneurs cannot answer how much money they invested in their business because they did not track purchases. Jenkins is a member of Service Corps of Resource Executives (SCORE), which has an office at the Small Business Resource Center. SCORE offers free consulting services. He has been a member of the Alabama Society of CPAs since 1978.

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DOING IT BETTER

Don’t “Cliff Out” on Your Career Climb W e often look at our careers as an upward climb; even with their inevitable twists and turns there is a tacit belief that “up” is inherently better than “down.” Reversing direction has a tremendous stigma attached. One of the biggest mental obstacles for people undergoing a mid-career change is an aversion to “losing ground”. No one wants to go back to the starting line even though this “going back” is almost always just a temporary re-route, enabling you to get on the path to doing better work with more career satisfaction. So what happens to people when they realize they are not where they want to be professionally - not moving forward, but afraid to go back? Several years ago I moved from the east coast to a town high in the Colorado Rockies. One day, hiking in a remote area, I was on a trail that led right into the rocks; but it appeared I could climb up and over a rocky area and keep hiking. The trail offered good steps, and was not pitched too steeply, so up I went. I became focused on finding sturdy foot and hand holds, looking only at the rock as I climbed, and then, unexpectedly, I was stuck. I just stood there, immobile, almost perfectly vertical with hands and face on rock, remembering a term I’d heard in a survival training course: “Cliff Out.” I remembered very clearly the survival class instructor explaining people have to be rescued each year because they try to climb mountains or complete hikes that were beyond their experience and skill level. How easily a simple hike could turn in to a “cliff out” - where someone is stuck - unable to move up or down. The emotions that accompany being alone in nature and realizing that you are in trouble, are almost always the same - shame and embarrassment. These two emotions are most detrimental to a person’s chances of survival. It’s shame and embarrassment (for letting it happen, for not knowing better, for doing something “stupid”) that leads people to make bad choices when they might otherwise have made level-headed ones… survivable ones. I knew that the smartest thing I could do was stop the self-defeating talk in my head and get calm. I got my bearings, slowed my heart rate, moved very slowly and found a way to ease back down. Admittedly, it wasn’t a bad cliff out, but the thing about these situations is they rarely are catastrophic, they are often survivable. Here are three tips to prevent YOU from cliffing out. 1. Be crystal clear on where you’re going. Failure to connect purpose to work is a major disengagement and results in burnout. The Bureau of Labor Statistics reports that about half of employees aren’t engaged. From my anecdotal experience, it’s higher. How many people do you know have a crystal clear vision for their future that energizes and excites them? Countless times in my career (spent mostly in the Big 4) I saw people disillusioned with their careers but not willing to take a step back to find something that had meaning for them. They lingered in middle management, or even higher positions, not meeting their expectations or anyone else’s. So what do you do when this happens?

Take stock and honestly acknowledge where you are: •R ate your level of job and satisfaction with it on a scale of 1-10. • Ask yourself if you are in the same place in one year - how happy will you be with that? • I f you aren’t happy, what have you done to change it? •W hat worked? What didn’t? •W hat can you do next? 2. Choose between being a master or a commodity. Find something you like, are good at doing and become a master. Everyone seems to be clamoring to get certifications, with little attention to real mastery and depth of knowledge. The potential to be an artist and a master exists in every profession – from accounting to plumbing to dry cleaning. Most modern professional training is designed to make us good commodities. The more of a commodity you are the better for your employer; it’s safe for you and dependable for them. It’s why performance reviews almost always point out what you’re not doing well and devise ways of getting you to strengthen areas in which you are “weak”. You’re better off focusing on what you already do well and finding ways to be even more brilliant at it. This is a choice that has to be made with discretion, but this inherent assumption that we must have high levels of skills in all areas limits our ability to become a master of one we really enjoy and have the potential to master. 3. Collaboration leads to mastery In the first few minutes of class, the survival course instructor said, “most people die in the wilderness for one reason…” I was thinking avalanche, inability to read a map or a compass, etc., but he shared something unexpected, “don’t go alone and if you do, tell someone where you’re going and when to expect you back.” The biggest mistake I see people make in their career is going it alone and not asking for help. One effective way to do this is to get into a one or more Master Mind groups – a group of people who are committed to helping each other achieve personal and professional goals by sharing knowledge, brainstorming ideas, helping problem solve or just acting as a sounding board. The best people to mastermind with are usually not in your work peer group or even in your inner circle. Information on how to create and a run a mastermind is freely available. W. Clement Stone grew up in complete poverty. At the age of six he was selling newspapers to help support him and his mother. He went on to build the Aon Insurance Company and sold it for $2.56 billion. He attributed working in masterminds as the single greatest factor to his incredible success. _______ Courtney Kirschbaum is a human development and high performance expert who specializes in equipping Millennials to transition seamlessly from college to career as high performers and helping professionals make successful midcareer transitions. She can be contacted at http://www.courtneykirschbaum.

THE ALABAMA CPA MAGAZINE

Annual Meeting 2015 OPENING 7:00 – 8:00 a.m.

Registration and Chair’s Breakfast

MORNING SESSIONS Session I 8:00 – 9:45 a.m. “CPA Professional Issues Update” Timothy Christen, CPA, AICPA Vice-Chair, CEO Baker Tilly Virchow Krause, LLP 10:00 – 10:40 a.m. “Southeast Region Economic Forecast” Governor Bob Riley 10:40 – 11:45 am “Generations & Diversity: Shaping the Future of the Accounting Profession” Ken Bouyer, CPA, EY, and Ralph Thomas, CPA, New Jersey Society CPAs Session II 8:00 – 11:45 am 12:00 – 1:15 pm

“Internal Controls and Fraud Prevention and Detection” Tommy Stephens, CPA, K2 Enterprises Luncheon, Awards, and Business Meeting

AFTERNOON SESSIONS Session III 1:15 – 4:40 pm “Accounting and Auditing Update” James D. Martin, CPA, Martin & Company, CPA, P.C. Session IV 1:15 – 4:40 pm Trends in Worker Reclassification Audits and Mobile Workforce Tax Compliance Bruce P. Ely, Esq., John Hargrove, Esq., James E. Long, Esq., Sims Rhyne, Esq., Will Thistle, Esq., Bradley Arant Boult Cummings, LLP Register online at www.ascpa.org or contact Corena Unpingco at 334-386-5764

YOUNG CPA CHARITY GOLF TOURNAMENT For information on teams and sponsorships contact Amanda Freeman, 334.386.5755 or Rebecca Vosghanian, 334.386.5753.

THE ALABAMA CPA MAGAZINE

“Your tax credit donation will give me an opportunity!”

“C” corporations and individuals can receive a dollar-for-dollar tax credit.

Donate a portion of your Alabama income tax liability and receive a dollar-for-dollar income tax credit today! Currently, “C” Corporations and individuals can receive a state income tax credit to offset up to 50% of the corporation’s Alabama income tax liability. However, an individual’s taxcreditable donation is capped at $7,500 per calendar year. In addition, donations can qualify for the federal Section 170 charitable contribution deduction. Legislation was introduced this year that would allow partnerships, LLCs, and “S” Corporations to make tax-creditable donations. The legislation would also remove the $7,500 cap on individual contributions.

“

Your tax dollars are hard at work funding scholarships and helping children like mine achieve academic success.

”

Dalphne Wilson AOSF Parent

12,000 children applied 2,851 scholarships were awarded by the Alabama Opportunity Scholarship Fund for the 20142015 school year with students enrolled in 131 partner schools across Alabama. 2,200 children waitlisted 83% of scholarship awards were to minorities. Lesley Searcy Executive Director lsearcy@alabamascholarshipfund.org 205.206.7801 6

“

We make a commitment that if we’re going to take these dollars that we are going to do the very, very best by these children. I anticipate that this will bring a whole group of children who will come up and support their state. They will be taxpayers and they will help the economy because they are well educated and well employed.

”

Sharon Lewis Associate Superintendent of Schools for the Southeast Adventist Schools in Alabama

Alabama Opportunity Scholarship Fund P.O. Box 59188 Birmingham, AL 35209 www.alabamascholarshipfund.org

Bri Jackson Development Director bjackson@alabamascholarshipfund.org 205.206.7803 THE ALABAMA CPA MAGAZINE

CPA STANDOUT: TIM HALL, CPA

Giving new meaning to the term “straight shooter”

or Montgomery CPA Tim Hall “hardware” is not just about his computer. It’s also about the tools of his hobby, competitive shooting. And not shooting at tin cans stuck on a fence post! His shooting is big time trap shooting. Hall’s career as a CPA preceded his interest in shooting, from the time he was in college and learned more about accounting from John Livings of Montgomery firm Livings, Lankford & Lambert. He went first to Auburn, completed his degree at Auburn Montgomery, and returned to Auburn for his master of accountancy degree with tax concentration. In graduate school Dr. Steve Crowell served as a mentor. He worked in industry after earning his fouryear degree, then with Wilson, Price, Barranco, Blankenship & Billingsley (now Warren Averett) before going to graduate school. “After leaving Auburn I joined Art Leadingham’s firm, Leadingham Rodgers, and started building toward my own practice with his help. I went out on my own in 1993 and mostly do taxation for small businesses and individuals. That’s been the most rewarding part of my work, helping clients realize their goals. The flip side is that I have trouble letting go of my desk at the end of the day. I am blessed to have a very supportive wife! She did an amazing job raising our children while I was working. Honestly, I’ve been surprised by how much I’ve enjoyed having my own firm. Maybe that’s why it’s hard to turn off.” His practice and shooting overlapped when Hall began spending a lot of time at a trap range outside Montgomery, owned by a client. “I became enthralled with how shooters

could consistently hit the targets. It became a personal challenge. In 2006 I started shooting competitively and was able to take that challenge on. I’m in my fourth term as president of the association and third term as secretary/ treasurer of the Southern Zone Trapshooting Association.” He was featured in the September/October edition of Trap Shooting USA magazine in an article about the Alabama State Trap Shoot held in last May in Mathews, Alabama. He came in fourth in one event and was named champion of another. “Generally, I start the year shooting in Tampa in January at the Dixie Satellite Grand, then attend 3-4 state shoots in the southeast after tax season ends. I’ll shoot the Southeastern Tournament in July and then the Grand American (the national tournament) in August in Illinois.” Hall’s gotten the family involved, too, with all his children enjoying shooting and acting as volunteers at the Alabama State Shoot. When not shooting for himself, Tim mentors young shooters. He has a NRA Level 1 coaching certificate and works with both adults and young people on shooting trap and skeet.

Shooting can be an expensive hobby! “The initial investment is just a shotgun costing about $500. A client of mine, a top-ranked trap shooter, has a customized shotgun which cost $50,000. So there’s one of the places where numbers and shooting overlap. But I actually do see a connection between the two. For both, you must be able to maintain a high level of concentration until you finish your task.” Hall and his wife take time off from both work and shooting by taking their RV to Auburn football games and he goes with her as she travels with a horse rig for trail rides. “Sometimes she’ll let me come along to ride, but I feel safer on my Harley than on a horse. Having my CPA license has allowed me to make a nice living, enjoy my hobbies, travel and provide for my family. Having my own practice has given me many lifelong friends and I am blessed to have a wonderful staff which cares about our clients as much as I do.”

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IN MEMORIAM

JAMES WAYNE “ROCKY” WASHAM September 30, 1946 - December 11, 2014 Talladega, Alabama Certificate #2891 FRED OSBORNE KELLEY July 9, 1928 – January 14, 2015 Birmingham, Alabama Certificate #466 BOBBY JOE GLENN November 28, 1949 - January 26, 2015 Montgomery, Alabama Certificate #1488 JOSEPH STEVEN LEE February 15, 1951 – March 17, 2015 Mobile, Alabama Certificate #4620 THE ALABAMA CPA MAGAZINE

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DOING IT BETTER

The new repair regulations: By Edward K. Zollars, CPA, Nichols Patrick CPE, Incorporated, October 2014

he revised repair and capitalization regulations are now out in force. CPAs must be prepared to comply with these rules when completing returns for years beginning on and after Jan. 1, 2014. This article looks at certain key features that CPAs should focus on as you approach the coming filing season when these rules are applied. Depreciation of repairs One key feature of the new regulations is what the IRS sees as a “clarification” of the application of the deduction for repairs under IRC §162. Specifically, the IRS modified Reg. §1.162-4 to provide that an expenditure can be treated as a repair only if the taxpayer determines it is not required to be capitalized under any other provision of the tax law. Previously, this regulation had a description of what a repair was and did not require taxpayers to determine if another capitalization for the expenditure was applicable. The IRS appears to believe that courts, in interpreting the old regulation, were first testing expenditures against that regulation’s terms. The practical impact of this rule is that taxpayers should expect the IRS to insist on the capitalization of more items than was true in the past. Accounting method changes The IRS specifically prohibited limiting the regulations’ use only to assets acquired after the effective date of the new regulations. Instead, the IRS views these regulations as imposing a rather staggering number of new accounting methods that taxpayers need to adopt on 2014 returns, requiring the filing of Forms 3115. Each of these method changes require taxpayers to compute the cumulative difference in taxable income that would have been recognized in the past had these methods been used instead of the prior regulations. That number, referred to as the §481(a) adjustment, will generally need to be included in income over four years if it is a positive adjustment, or in the year of change for a negative adjustment. The IRS published a pair of Revenue Procedures (Revenue Procedures 2014-16 and 2014-17) providing for the granting of automatic consent to change accounting methods. CPAs need to study this pair of 8

What CPAs need to know

procedures and understand the number of changes in method that will need to be handled, as well as the information to be assembled. As these are automatic method changes, the Form 3115 does not need to be prepared until the taxpayer prepares his or her 2014 tax return. At that time, the form will be prepared in duplicate, with one copy sent to the IRS Service Center in Ogden, Utah, at the address found in the Revenue Procedures, and one copy sent with the taxpayer’s original return when it is filed. Buildings and the new rules [Reg. §1.263(a)-3(e)(2)] Major changes have been made in determining what must be capitalized related to real property. Specifically, the rules provide that a taxpayer must not just determine if the expenditure resulted in an improvement of the building as a whole, but also whether it improved any building system (with a number of those specifically defined in the regulations) or any structural component of the building (including the roof, windows, etc.). (Editor’s note: See Mark Sellner’s accompanying article on page 10 for further explanation of how the new repair regulations apply to roofs.) An improvement of either the building as a whole or smaller part will require capitalization of that item. This represents a significant change from prior case law where the courts had recently tested the building as a whole as the item for improvement. Given the long lives of buildings (39 years MACRS lives for commercial buildings), the real property rules are likely to result in significant adjustments. Any item treated as a repair on a commercial building within that 39-year period would still have an unrecovered cost component had that repair been capitalized. De Minimis rule [Reg. §1.263(a)-1(f)] The regulations contain a special provision where taxpayers may make use of capitalization policies used for financial reporting purposes to justify writing off items that otherwise would need to be capitalized under these rules. The starting point for making use of these rules is determining if the taxpayer has an “applicable financial statement” as defined in the regulations. An applicable financial statement only includes: A statement filed with the SEC.

A financial statement audited by an independent CPA that is used for nontax purposes. A statement (other than a tax return) required to be filed with the federal or state government or any federal or state agency (other than the IRS or SEC). [Reg. §1.263(a)1(f)(4)] A taxpayer with such a statement must have had written accounting procedures in place at the beginning of the year that were followed in preparing the applicable financial statement. In such a case, any amount paid for property with an invoice cost of less than $5,000 that is expensed under that policy can be written off on the tax return. [Reg. §1.263(a)-1(f)(1)(i)] If a taxpayer does not have an applicable financial statement, the rules are different. First, the entity must have accounting procedures in place as of the beginning of the year (though the regulation does not state they must be in writing in this case), and those procedures must be used in preparing the taxpayer’s

(Continued on page 15) On February 13, 2015 the IRS released Revenue Procedure 2015-20 to permit a small business taxpayer to apply the repair and disposition regulations prospectively on a cut-off basis in taxable years beginning on or after January 1, 2014 without filing a Form 3115 Application for Change in Accounting Method. A small business taxpayer is defined as a business with total assets of less than $10 million or average annual gross receipts of $10 million or less for the prior three taxable years, CPAs with middle market clients struggled over the last couple of years with the repair regulations more than with any other issue in recent memory. Many finally decided that most of their clients were substantially in compliance, but would file Forms 3115 anyway with a zero Section 481(a) adjustment to acknowledge their consideration, analysis, and adoption of the new rules, and continue to do so. THE ALABAMA CPA MAGAZINE

THE ALABAMA CPA MAGAZINE

FINANCE FORTE: THE FUTURE OF FINANCIAL Survey and results from EY o one expects the top finance job to be easy. When problems get to the CFO’s desk, they are inherently difficult ones — otherwise they would have been addressed earlier. Nevertheless, as organizations look ahead to an uncertain future, the responsibilities of the role will only increase. Finance forte provides insight on the future of the CFO role and what current CFOs, aspiring CFOs and boards need to do to keep up. The study is based on a survey of over 530 Group CFOs and their reports across Europe, the Middle East, India and Africa, as well as a series of in-depth interviews with leading CFOs and future finance leaders from across these regions. At a time when the importance of the CFO role has never been greater, the focus on cultivating the pipeline of future finance leaders needs to catch up with the role’s evolution.

“CFOs who do not have [communication] skills but excel in the traditional aspects of finance are now regarded as rather quaint and antiquated. They may be very good at what they do, but they wouldn’t be their own replacement.” The future of the top job Few jobs today can rival the CFO’s role in terms of breadth, influence and profile. Indeed, the CFO is now arguably the most influential role in the organization, particularly at a time when economic uncertainty continues to cause unpredictable demand, capital availability and cash flows. In light of this role stretch, two-thirds of survey respondents agree that the title “CFO” is inadequate. And while only onethird of respondent organizations currently have a deputy CFO, the majority believe that the increasing complexity of the role will mean that more organizations will appoint one. Seventy-two percent of respondents 10

agree the breadth and profile of the CFO role makes it a more attractive career aspiration. Yet there are also concerns that the pool of individuals with the appropriate skills and experience to succeed in the position is not sufficient. Seventy-three percent of respondents agree that very few people in their current finance organization have the broad skills required to succeed as Group CFO. Those leading CFOs we spoke to do not believe that there is a lack of talented finance professionals. Instead, a number point out that structural changes within the finance function may limit the opportunities for talented candidates to develop the right experience for the top job. In view of this, they argue that formal identification and development of talent is critical to ensure that there is a strong pipeline of candidates with the right credentials for the role. Our study suggests that there are nine key steps that aspiring Group CFOs can take to ensure that they are well prepared to meet the future challenges of the role: 1. Gain a breadth of finance experience According to survey respondents, it is more important for prospective candidates to gain experience in a wide range of roles within the finance function. However, it’s not about slavishly rotating through each of the central functions. It is far more important to build on skills acquired at the head office and gain broader commercial and strategic experience, often in divisional or operational roles.

How important is it for future Group CFOs to have experience in the following areas? Select up to three (percentage)

The best stepping stones to the top job Reflecting the need for candidates to build a breadth of experience, respondents consider the best stepping stones for the job to be deputy CFO, Group CFO of another organization and financial controller. 2. Develop commercial insight Sixty-seven percent of respondents believe that prospective CFOs who have spent their entire career in the finance function are at a disadvantage compared to those with direct commercial experience. Yet, only a slim majority of companies create opportunities for junior finance professionals to gain broad commercial skills, although higher-performing companies are more likely to do so. Many managers may be reluctant to lose high performers, even temporarily, at a time when finance functions have been downsized and resources are tight. 3. Seek out M&A experience Most leading CFOs interviewed for this report see M&A experience as a prerequisite to the role. Although deals have been few and far between during the financial crisis, the economic recovery should herald a return of M&A activity, giving future finance leaders a good opportunity to demonstrate their strategic and leadership skills. When they are involved with M&A projects, most finance professionals, however, are likely to participate in the predeal stage of valuation, due diligence and assessment of potential synergies. Far fewer will be involved in the post-merger integration phase. This is a missed opportunity. THE ALABAMA CPA MAGAZINE

LEADERSHIP Nine Steps for CFOs to prepare for the future 4. Obtain a balance of traditional and non-traditional skills Much of the traditional CFO role will remain central. Successful candidates for the position will still need a firm grasp of finance fundamentals and most will continue to originate from a finance background. However, it will be those who can demonstrate experience in key areas over and above core finance who will shine. The ability to lead diverse teams, give commercial insight, lead major projects and build trusted relationships with internal and external stakeholders are skills that will set the top contenders apart. 5. Develop leadership skills Individual performance criteria are no longer the basis for selection of a Group CFO. Increasingly, boards are looking for evidence of leadership skills and the ability to build effective teams. Three-quarters of respondents agree that Group CFOs need the experience of managing diverse teams, while almost 80% think that the CFO role is primarily about being a leader of the entire organization rather than just being head of the finance function. It is almost impossible for a CFO to be an expert in the complete range of activities under his or her control, especially when IT, sourcing, and other functions are added to the CFO’s remit. Finance leaders must therefore be highly adept at building and leading effective teams around them. 6. Get international exposure As global companies become increasingly polarized between fast-growing, immature markets and slow-growing, mature ones, CFOs who have experience of managing both will be in high demand. Companies should anticipate this requirement by putting in place career paths for future finance leaders that include periods in both developed and emerging markets. “It’s becoming best practice to take THE ALABAMA CPA MAGAZINE

younger finance people, put them into emerging markets with a lot of training from a general practitioner standpoint and then move that person to a market at the next level of maturity so that they’re gaining experience and knowledge along the way,” says Bill Leisy, Principal, EY 7. Gain experience of finance transformation initiatives Despite the sizeable benefits of finance transformation initiatives, they could have an unforeseen impact on the long-term talent pipeline. By migrating transactional processes to centralized or outsourced providers, organizations may no longer be giving finance professionals adequate experience of the fundamental skills of finance. Also, the big project experience of implementing and managing a shared service center is increasingly becoming a core competence for senior finance professionals. Talent management programs that enable finance professionals to manage this type of project and include temporary rotation into shared service centers can help to fill these gaps. 8. Gain exposure to the markets and its stakeholders The CFO is increasingly becoming the public face of the organization. As such, aspiring CFOs should seek to build relationships with a wide range of stakeholders including banks, equity and bond investors, regulators, rating agencies, analysts and the media. Organizations need to take a structured approach to providing the necessary exposure and building these opportunities into the talent management process. Developing skills and experience Question asked of Group CFOs/ finance directors: In which of the following areas do your direct reports most need to develop their skills and experience in order to progress to a Group CFO role?

that you most need to develop your skills and experience in order to progress to a Group CFO role? Non-Group CFOs (incl. financial controllers and treasurers) 9. Build effective relationships with the board Perhaps the most crucial set of stakeholders for aspiring CFOs is the board. When Group CFOs first take on the role, they must become attuned to boardroom dynamics, and build effective relationships with key board members, including the CEO, the Chairman, and the Chair of the Audit Committee. By kick-starting these relationships as part of the succession planning process, companies will ensure a much smoother transition for the incoming CFO. _______ This article was reprinted from EY online resources with their permission.

Group CFOs/finance directors Question asked of non-Group CFOs: In which of the following areas do you feel 11

MEMBERS IN MOTION PROMOTIONS AND NEW POSITIONS Warren Averett announced that Will Aderholt, Ryan Chaffin and Phillip Rivers have all been named members of the firm. Aderholt serves in the tax division of the Birmingham office. With more than nine years of experience, he specializes in tax planning and consulting for closely-held and private-equity owned businesses. He has extensive experience serving clients in construction, manufacturing and distribution, Will Aderholt healthcare and retail industries. Ryan Chaffin serves in the audit division and as the service area leader of the Huntsville office. With more than 12 years of public accounting experience, Chaffin has extensive experience serving clients in the automotive, healthcare facilities/ hospital, manufacturing and distribution industries, as well as serving nonprofit organizations. Phillip Rivers leads Warren Averett’s new Mobile office with more Ryan Chaffin than 13 years of accounting experience in a wide range of industries including real estate, healthcare, financial services, manufacturing and transportation. He specializes in internal control reviews, due diligence, debt issuances as well as assistance with mergers, acquisitions and spinoffs. Phillip Rivers

Todd Turner

Todd Turner, Katy Beth Jackson, and Lauren Roberts were promoted to manager at JamisonMoneyFarmer while Andrea Armstrong and PJ Talley became senior accounts. Turner worked at JMF as a runner in 2004 through 2007 and then as a tax intern in 2008 before becoming a full time staff accountant in August 2008. Mr. Turner was a graduate assistant at the University of Alabama and graduated summa cum laude with a Bachelor of Science degree and Masters of Accountancy. He is a member of Young CPAs of Tuscaloosa and Alpha Kappa Psi. Mr. Turner was the Vice – President of the Tuscaloosa ASCPA Chapter for 2014 – 2015 and will serve as President in 2015 – 2016.

Jackson joined JMF as a staff accountant in 2007 in tax and accounting. She graduated summa cum laude with an undergraduate degree and master of taxation at the University of Alabama. She worked as a tax intern at JMF prior to joining the firm full time. Roberts Katy Beth Jackson worked as a tax intern and a client services intern for JMF in 2007. She graduated with honors from the Culverhouse School of Accountancy at the University of Alabama and started working full time at JMF in 2008. She also has a Bachelor of Arts in Dance. Armstrong began full time at JMF in October 2012 as a staff accountant in tax and accounting. She worked as an intern for JMF during the 2011 and 2012 tax seasons. Lauren Roberts She graduated with undergraduate and masters of accountancy degrees from the University of Alabama. PJ Talley began full time at JMF in October 2012 as a staff accountant in tax and accounting. He worked as an intern for JMF during the 2011 tax season. He graduated from the University of Alabama with a minor in computing technology. PJ Talley

The Calera Chamber of Commerce recently named Alabaster resident and small business owner Jennifer

Hand as its new executive director. Hand worked in industry for 22 years and recently opened her own fulltime business, Family Memories Travel. Barfield, Murphy, Shank & Smith (BMSS) is proud to announce that Karen Poist and Bill Lorimer became members of the firm on January 1, 2015. Karen Poist joined the firm in 1998. She heads the firm’s state and local Karen Poist tax services group (SALT). Her experience and areas of specialty include state and local income taxation, individual and corporate taxation, compliance, planning, audit representation and mergers and acquisitions. She works with, and represents clients on, tax audits with the IRS and state and local governments. Karen has presented SALT seminars for clients including topics on state and local taxes, sales tax, nexus and apportionBill Lorimer ment and allocation. Bill Lorimer joined BMSS in 2006. He previously worked 12 years for a local accounting firm. His special areas of practice include individual, corporate federal and state income, along with not-forprofit taxation and compliance. Lorimer has experience working with all forms of entities in real estate, construction, manufacturing, retail, not-for-profit, entertainment and service industries. He regularly presents to not-forprofits and businesses on tax compliance. Melissa Archibald Smith Dukes & Buckalew was pleased to welcome back Melissa D. Archibald, CPA, as a senior assurance Accountant. She first joined the firm in 2010, and recently relocated back to Mobile and Smith Dukes. Since joining us in 2010, she has specialized in governmental and non-profit audit and tax engagements. Melissa graduated from the University of Alabama, and received her Master’s in Accounting from the University Kathy Killion of South Alabama. Kathy Killion, CPA joined the firm full-time as a tax manager. She has over thirty years of public accounting experience, and specializes in the field of taxation. Killion has extensive experience working with real estate investments, small businesses, non-profit organizations, and employee benefit plans, as well as individual, partnership and corporate taxation. Peter F. Susman has been promoted to assurance manager. He joined Smith Dukes in 2014 with seven Peter Sussman years of experience with a Big Four firm in Illinois. He has extensive experience in accounting and auditing for complex multi-national and middle market firms, as well as small businesses, non-profit entities and employee benefit plans. Susman has industry knowledge and experience in the aerospace, defense and industrial manufacturing sectors. He is a graduate of Southern Methodist University, and is licensed in Alabama, Zack Wolf Texas, and Illinois. Zack Wolf has been promoted to assurance supervisor. He joined SDB in 2013 in the assurance department, and provides audit, accounting, and tax services to non-profit and governmental clients, as well as individuals and corporations. He received his bachelor’s degree from the University of Alabama and his masters of accountancy from Vanderbilt University. Zack teaches principles of accounting in the fall, as an James Wishon adjunct faculty member for the University of Mobile’s THE ALABAMA CPA MAGAZINE

Adult & Professional Studies program. James Wishon, III has been promoted to tax supervisor. Since joining the firm in 2011, he has specialized in closely held businesses, as well as timber and fiduciary taxation. He received his B.S. in accounting and his master’s in tax accounting from the University of Alabama. Wishon is heavily involved in several CPA organizations in the community, including serving as president of the ASCPA Young CPA Board. Bevill State Community College has appointed executive vice president Mark Ellard as interim president. Ellard has more than 16 years of business and educational experience. He has been at Bevill State since 1998 has worked in the roles of CFO and dean. He previously worked with the Alabama Department of Examiners of Public Accounts, auditing colleges and universities for 7 years. He holds an undergraduate degree from the University of Alabama and an MBA from UAB. Anglin Reichman Snellgrove & Armstrong announced the following new partners effective January 1, 2015: Ryan Campbell, N. Scott Hand, Jeremy Mostellar and Brandon Smith. Campbell has been working in public accounting with the firm for 12 years. He works in ARSA Solutions group providing consulting services, including CFO and outsourced accounting services, systems Ryan Campbell consulting, and planning services to clients in the construction, manufacturing, professional services, real estate, and other industries. He is a summa cum laude graduate of Troy University with a BSBA in Accounting and holds a Master of Accountancy from the University of Alabama in Huntsville. Hand has 12 years of experience in public accounting and is a partner of the Tax Advisory Services group. He provides preparation, planning and advisory services for clients in manufacScott Hand turing, residential and commercial construction, real estate, professional, and international industries. He also has experience with planning for estate, trust and gift tax planning and is a member of the Financial and Estate Planning Council of Huntsville. He has a BBA in Accounting and Finance from the University of North Alabama and a Master of Business Administration from the University of Alabama in Huntsville. Mosteller has Jeremy Mostellar worked in public accounting for 15 years and is a partner in the Tax Advisory Services group. He provides comprehensive tax planning and technical advisory services to closely held businesses and high net worth individuals. He also works with clients in the government contracting, biotechnology, information technology, not for profit, and professional services industries. He has extensive experience in multi-state tax services Brandon Smith including state & local tax advisement and is a member of the ASCPA State Tax Committee. He is a graduate of Auburn University with a BSBA in Accounting. Smith has been with the firm for 9 years and has a background of industry and public accounting experience. In the ARSA Solutions group, he provides extensive consulting services for government contractors including CFO Services, systems consulting, DCAA compliance, rate analysis and structuring. He also works with clients in biotechnology, information technology, professional services, health care and other industries. He is a graduate of the University of Alabama with a BS in MIS/Computer Science and the University of Alabama in Huntsville with a Certificate in Accounting and a Master of Accountancy. Mr. Smith also serves on several Boards of Directors for non-profits. THE ALABAMA CPA MAGAZINE

Scott Browning

Scott Browning was promoted to partner at Wilkins Miller. He has over seventeen years of experience providing tax planning and compliance services to businesses and individuals with extensive experience in real estate, construction, manufacturing, and professional services. Before joining predecessor firm, Hieronymus Gaillard & Jones in 2001, Browning worked for PricewaterhouseCoopers, LLP in Birmingham. In 1995, Browning was graduated from The University of Alabama with a degree in accounting and in 1996 he received his master of taxation at UA. He currently serves on the board of directors for the Alabama Federal Tax Clinic and as the treasurer for the Dauphin Island Sea Lab Foundation..

AWARDS AND NEW DESIGNATIONS Wilkins Miller, an accounting and advisory firm with offices in Fairhope and Mobile, is pleased to announce that Blake Ethredge has been awarded the Certified in Financial Forensics credential (CFF) by the AICPA, joining three other professionals with the designation at the firm. Blake Ethredge

MEMBERS IN THE MEDIA Patrick Bowman, member at Barfield Murphy Shank & Smith LLC, and Maddox Casey, member at Warren Averett LLC, were named to the Birmingham Business Journal’s 40 under 40 list for 2015. Bowman, 39, is one of the youngest members at BMSS and has been instrumental in developing the firm’s nonprofit and governmental practice, as well as landing new clients. Casey, 32, has fast become a respected leader as Warren Averett has continued to grow. He leads the firm’s health care client practice group, focusing on medical practice profitability, physician ownership and health care reform – three key areas in a rapidly changing industry. COMMUNITY NEWS Russell Thompson Butler & Houston, LLP (RTBH) has recently been accepted into CPAmerica International, an exclusive accounting association of independent CPA firms that provides shared best practices, networking opportunities and access to expert resources for its members. Only firms with the highest standards across all practice areas are approved for membership. RTBH is a full-service CPA firm providing accounting, taxation, and business consultation services to more than 3,000 clients. The practice is diversified an Carr, Riggs & Ingram, LLC (CRI), deepened its Texas roots by merging CPA firm Oman Berry & Associates and BOI Consulting. Both entities will now operate under the CRI name while retaining their current staff and office in The Woodlands, a master-planned community near Houston. Created in 2009, BOI Consulting assisted business clients by providing specialized support during mergers and acquisitions providing both buy-side and sell-side services with a heavy emphasis on due diligence, offer negotiation, evaluation, and integration support. Oman Berry & Associates, formed in 2012, delivered individual and business tax preparation and planning services, as well as business bookkeeping services, in the North Houston area for the last three years. CRI is ranked as a Top 25 accounting firm nationally by Accounting Today and delivers services from offices located in 22 markets throughout nine states across the South. CRI Transaction Advisors, one of three divisions of CRI, is a licensed broker/dealer offering transaction services that encompasses a broad range of sell-side and buy-side offerings. 13

BOARD OF DIRECTORS

Slate of officers proposed for ASCPA Board of Directors

ccording to Article VII of the ASCPA By-Laws, revised February 21, 2014, the nominations committee met on January 14, 2015 to select candidates for open positions on the ASCPA Board of Directors. “The ASCPA Nomination Committee shall consist of the two immediate past-chairs of the board of directors, the current chair of the board of directors and three members voted upon by the board of directors. The chair of the board shall appoint one of the elected members as chair of the nomination committee.” Therefore, the 2015 Nomination Committee is comprised of current chair Don McCleod, past chairs Renee Hubbard and Steve Shelton, and three elected members: Jeremy Blackburn, CDPA,

Allison Guice, Jackson Thornton, and Mike Baker, Dent Baker. Open ASCPA Board positions are for three-year terms that will commence with the Society’s election of officers at the 96th Annual Meeting on June 4, 2015. The following members were nominated and have agreed to serve: • Lynne Bozeman, Richard Harris Ingram Bozeman • Michael Brand, Johnson, Feigley, Newton & Brand • Lisa McKinney, University of Alabama College of Commerce • Mac Underwood, Birmingham Water Works. Nominated officers are Dr. Lowell Broom, Samford University, chair and Jamey Carroll, MDA Professional Group, chair-elect.

Annual Meeting Notice Under the provisions of Article VI of the Alabama Society of CPAs’ bylaws, notice is hereby given of the annual business meeting. The meeting will be held Thursday, June 4, 2015 at the Cahaba Grand Conference Center, Birmingham, Alabama, beginning at noon.

THE ALABAMA CPA MAGAZINE

Young CPA Board Proposed Bylaw Amendment History

Proposed Amendment

The Young CPA Board began in 2002, with each member selected by their local chapter as set in the bylaws of the ASCPA. This group plans and executes the Classroom Blitz and the Young CPA Charity Golf Tournament, as well as other leadership endeavors, like attracting the Best and Brightest to our profession. They have been vital in providing insight to the Board of Directors regarding generational changes of the profession. Over the years, some chapters have not had many willing participants while others have had more eager young leaders than could serve. The Young CPA Board feels it is necessary to amend the bylaws giving them more flexibility in selecting the members to continue the vitality and wellbeing of this group.

The proposed bylaw amendment would allow us to change the way CPAs are elected to the Young CPA Board. Currently, our bylaws state that each chapter selects one young CPA as a representative. This amendment would propose the following: Mention of the Young CPA Board as a separate board would be stricken from the bylaws. The Young CPA Board would become a permanent committee as outlined in the bylaws, and be titled “Young CPA Cabinet”. The Young CPA Cabinet would then follow the rules pertaining to permanent committees as stated in the bylaws. The Young CPA Board is developing an application process it will use in selecting new members that would be open to all members of the ASCPA 35 and under. If the bylaw amendment passes, you will find this application on our website, www.ascpa.org.

The new repair regulations:

What CPAs need to know

(Continued from page 8) books and records. In this case, items written off under the accounting procedures may also be written off on the return, but the protected invoice cost decreases to $500. In either case, the taxpayer must make an explicit election each year using language found in Reg. §1.263(a)-1(f)(5). Partnerships and S corporations make this election at the entity level. Small taxpayer, small building safe harbor [Reg. §1.263(a)3(h)] Another special rule applies to taxpayers with average annual gross receipts in the prior three years of less than $10 million that relates to real estate. The taxpayers may elect to use this method on a building-by-building basis for each qualifying property. A property qualifies if the building has an unadjusted basis of $1 million or less. In this case, the taxpayer adds up all expenses paid for repairs, improvements, maintenance and similar activities on the property for the year, while not making use of any other special rule that allows for expensing of such items. If that total is less than 2 percent of the building’s unadjusted basis (though no more than $10,000), and the taxpayer elects to use this method, all costs are immediately expensed. If the total exceeds that amount, the taxpayer is not eligible for this election and each expenditure is tested under the standard rules. To use this method, the taxpayer must attach an election to the return as described in Reg. §1.263(a)-3(h)(6). In the election, the taxpayer will identify the specific property or properties for which the taxpayer makes the election each year. Routine maintenance safe harbor [Reg. §1.263(a)-3(i)] One more special rule is a safe harbor for determining routine maintenance. Currently, a taxpayer may expense activities reasonably expected to be performed more than once during the asset’s class life as routine maintenance. The asset’s class life can be found most easily by consulting

THE ALABAMA CPA MAGAZINE

the tables found in Appendix B of Publication 946 (taken from Revenue Procedure 87-56). Note that this is not the MACRS life for depreciation, nor does it refer to the economic useful life of the property to the taxpayer. Moving forward These are just some of the key provisions found in the revised repair and capitalization regulations -- many more details can be found within the regulations, along with a large number of helpful examples of applying the regulations to specific cases. Taxpayers need to understand these rules and take action to assure proper compliance on returns filed for the 2014 tax year. These taxpayers will look to CPAs to assist them with handling the issues involved, and CPAs should be proactive in informing taxpayers of the issues they will face to comply with these new rules. _______ Edward K. Zollars, CPA, is a partner with the Phoenix CPA firm of Thomas, Zollars & Lynch, Ltd., and an author and lecturer for Nichols Patrick CPE, Incorporated.

EDUCATION EXPRESS No. Date 001 5/22/15 002 6/22/15 003 6/22/15 004 6/22/15 005 6/22/15 006 6/22/15 007 6/22/15 008 6/23/15 009 6/23/15 010 6/23/15 011 6/23/15 012 6/23/15 013 6/23/15 014 6/24/15 015 6/24/15 016 6/24/15 017 6/24/15 018 6/24/15 019 6/24/15 020 7/27/2015 021 7/27/2015 022 7/27/2015 023 7/27/2015 024 7/27/2015 025 7/27/2015 026 7/28/2015 027 7/28/2015 028 7/28/2015 029 7/29/2015 030 7/29/2015 031 7/29/2015 032 7/27/2015 033 7/28/2015 034 7/29/2015 035 7/29/2015 036 7/30/2015 037 7/30/2015 038 7/31/2015 039 7/31/2015 040 8/3/2015 041 8/4/2015 160 9/17/2015 161 9/17/2015 042 8/13/2015 043 8/13/2015 044 8/13 - 8/14/2015 045 8/14/2015 046 8/17/2015 047 8/17/2015 048 8/18/2015 049 8/18/2015 050 8/17/2015 051 8/17/2015 052 8/17/2015 053 8/17/2015 054 8/17/2015 055 8/17/2015 056 8/18/2015 057 8/18/2015 058 8/18/2015 059 8/18/2015 060 8/18/2015 061 8/18/2015 062 8/19/2015 063 8/19/2015 064 8/19/2015 065 8/19/2015 066 8/19/2015 067 8/19/2015 068 8/19/2015 069 8/19/2015 070 8/19/2015 071 8/20/2015 072 8/20/2015 073 8/20/2015 074 8/20/2015 075 8/21/2015 076 8/21/2015 077 8/21/2015 078 8/24/2015 079 8/24/2015

City Credit Montgomery AA Gulf Shores AA Gulf Shores Tax Gulf Shores Other Gulf Shores AA Gulf Shores Tax Gulf Shores Other Gulf Shores AA Gulf Shores Tax Gulf Shores AA Gulf Shores AA Gulf Shores Tax Gulf Shores AA Gulf Shores AA Gulf Shores Tax Gulf Shores AA Gulf Shores AA Gulf Shores Tax Gulf Shores AA Birmingham Tax Birmingham Tax Birmingham Tech Birmingham AA Birmingham Tax Birmingham Tech Birmingham AA Birmingham Tax Birmingham Tech Birmingham AA Birmingham Tax Birmingham Tax Montgomery AA Montgomery Tax Montgomery AA Montgomery Tax Birmingham Tax Birmingham AA Birmingham AA Birmingham Other Birmingham AA Birmingham AA Huntsville Tax Huntsville Tax Birmingham AA Birmingham AA Birmingham AA Birmingham AA Montgomery AA Montgomery Tax Montgomery AA Montgomery Tax Huntsville AA Huntsville Tax Huntsville Gov/NP Huntsville AA Huntsville Tax Huntsville Gov/NP Huntsville AA Huntsville Tax Huntsville Tech Huntsville AA Huntsville Tax Huntsville Tech Huntsville AA Huntsville Tax Huntsville Tax Huntsville 4AA/4Other Mobile AA Mobile Tax Mobile Gov/NP Mobile AA Mobile Tax Mobile Gov/NP Mobile AA Mobile Tax Mobile Gov/NP Mobile AA Mobile Tax Mobile 6AA/2TX Dothan AA Dothan Tax

Save $25 when you register at least 10 days before class date.

Hours Title Standard Fee 8 AICPA Peer Review Program Advanced Course 275 4 Interpreting the New Revenue Recognition Standard: What All CPAs Need to Know 180 4 Healthcare Reform Act: Critical Tax and Insurance Ramifications 180 4 Controller’s Update: Today’s Latest Trends 180 4 Engagement Essentials: Preparation of Financial Statements 180 4 Social Security and Medicare: Maximizing Retirement Benefits 180 4 Position Your Organization for Success: Strategies for Today’s Competitive Environment 180 4 Revenue and Cash Receipts: Common Frauds and Internal Controls 180 4 Tax Consequences and Reporting Issues of LLCs, LLPs and LPs and Other Partnerships 180 4 Accounting Standards Review for Controllers and Finance Professionals 180 4 Fraud: Recent Findings, Red Flags, and Corruption Schemes 180 4 Tax Planning Strategies for Small Businesses: Corporations, Partnerships and LLCs 180 4 Lease Accounting - Where Are We Headed? 180 4 Accounting and Auditing Update 180 4 Capitalized Costs and Depreciation: Key Issues and Answers 180 4 A Practical Guide to Business Combination Standards: FASB Statements 141, 142 & 146 180 4 Statement of Cash Flows: Preparation, Presentation, and Use 180 4 Reviewing Individual Tax Returns: What Are You Missing? 180 4 What’s New in Compilations, Review, and the Cash and Tax Basis of Accounting 180 8 New “Repair Regs” - Sec. 263(a) 285 4 Healtcare Reform Act from employer side 190 4 Do It Yourself Business Intelligence 190 4 TBD 190 4 Physician Practice Management 190 4 QuickBooks Online - Changing the Paradigm of Small Business Accounting 190 8 Internal Controls and Risk Assessment: Key Factors in a Successful Audit 285 8 Core Issues Related to Properly Assessing and Responding to Financial Statement Audit Risk 285 8 Excel-Based Dashboards 285 8 TBA 285 8 Basis/Distributions for Pass-Throuh Entities: Simplifying the Complexities 285 8 Medical Finances: Enhancing Your Value to a Medical Practice 285 8 Core Issues Related to Properly Assessing and Responding to Financial Statement Audit Risk 275 8 Construction Contractors: Special Tax and Accounting Considerations 275 8 Internal Control Best Practices for Small and Medium Sized Intities 275 8 TBA 275 8 Healthcare WS 285 8 Auditing Employee Benefits Plans 285 8 Community Banking Update 285 8 Advanced Business Law for CPAs 285 8 2015 Accounting and Auditing Update 285 8 2015 Compilation and Review Update 285 4 Tax Planning for Small Businesses 180 4 Health Care Reform Act: Critical Tax and Insurance Ramifications 180 4 Fraud: Recent Findings, Red Flags, and Corruption Schemes 190 4 Data Security - led by the IRS 190 16 Yellow Book Workshop: Super Circular and Advanced Topics in a Single Audit 8 Identity Theft: Preventing, Detecting, and Investigating 285 8 Employee Benefits 275 8 The Complete Guide to Payroll Taxes and 1099 Issues 275 8 Audits of 401(k) Plans: New Developments and Critical Issues for an Effective and Efficient Audit 275 8 TBA 275 4 Revenue Cash and Receipts: Common Frauds and Internal Controls 180 4 Hot Tax Planning Developments Under the Current Tax Law 180 4 GASB Statement No. 68 Audit and Accounting Workshop 180 4 Fraud: Recent Findings, Red Flags, and Corruption Schemes 180 4 Reviewing Individual Tax Returns: What Are You Missing? 180 4 Not-for-Profit Organizations: Key Accounting and Reporting Considerations 180 4 Compilation, Preparation, and Review Engagements Update 180 4 Key S Corporations Tax Strategies and Compliance Issues 180 4 Technology Update 180 4 Engagement Essentials: Preparation of Financial Statements 180 4 Tax Planning Strategies for Small Businesses: Corporations, Partnerships and LLCs 180 4 Securing Your Data - Practical Tools for Protecting Information 180 8 Internal Controls and Risk Assessment: Key Factors in a Successful Audit 275 4 Sirote’s Hottest Tax Topics for CPAs 180 4 Cancellation of Debt for Individuals and Businesses 180 8 Advanced Excel 275 4 Current Issues in Accounting and Auditing: An Annual Update 180 4 Cancellation of Debt for Individuals and Businesses 180 4 Compilation and Review Guide and Update 180 4 The Most Common Financial Statement and Asset Fraud Schemes: How to Detect and Prevent Them 180 4 Income Taxation of Estates and Trusts 180 4 The Auditor’s Responsibilities Related to Fraud and Abuse Under GAAS and the Yellow Book 180 8 FASB Review: Common GAAP Issues Impacting ALL CPAs 180 8 Federal Tax Update - Individual & Business Current Developments 190 4 Tailoring the Audit to Suit a Not-for-Profit Entity 180 8 Forensic Accounting Investigative Practices 275 8 Basis Calculations and Distributions for Pass-Thru Entity Owners - Schedule K-1 Analysis 295 8 Construction Contractors: Critical Accounting, Auditing, and Tax Issues in Today’s Environment 275 4 Revenue Cash and Receipts: Common Frauds and Internal Controls 180 4 Hot Tax Planning Developments Under the Current Tax Law 180

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City Credit Dothan AA Dothan Tax Dothan AA Dothan Tax Dothan AA Dothan Tax Birmingham AA Birmingham Tax Birmingham Gov/NP Birmingham AA Birmingham Tax Birmingham Gov/NP Birmingham AA Birmingham Tax Birmingham AA Birmingham Tax Birmingham AA Birmingham AA for IND Birmingham Tax Huntsville AA Huntsville Tax Montgomery AA Montgomery Tax Montgomery AA Montgomery Tax Montgomery AA Montgomery Tax Montgomery AA Montgomery Tax Montgomery Other Montgomery Tax Tuscaloosa AA Tuscaloosa Tax Tuscaloosa AA Tuscaloosa Tax

Hours Title Standard Fee 4 Fraud: Recent Findings, Red Flags, and Corruption Schemes 180 4 Reviewing Individual Tax Returns: What Are You Missing? 180 4 Interpreting the New Revenue Recognition Standard: What All CPAs Need to Know 180 4 Key S Corporations Tax Strategies and Compliance Issues 180 4 Engagement Essentials: Preparation of Financial Statements 180 4 Tax Planning Strategies for Small Businesses: Corporations, Partnerships and LLCs 180 4 Revenue Cash and Receipts: Common Frauds and Internal Controls 190 4 Hot Tax Planning Developments Under the Current Tax Law 190 4 GASB Statement No. 68 Audit and Accounting Workshop 190 4 Fraud: Recent Findings, Red Flags, and Corruption Schemes 190 4 Reviewing Individual Tax Returns: What Are You Missing? 190 4 Not-for-Profit Organizations: Key Accounting and Reporting Considerations 190 4 Interpreting the New Revenue Recognition Standard: What All CPAs Need to Know 190 4 Key S Corporations Tax Strategies and Compliance Issues 190 4 Engagement Essentials: Preparation of Financial Statements 190 4 Tax Planning Strategies for Small Businesses: Corporations, Partnerships and LLCs 190 8 Upcoming Peer Review: Is Your Firm Ready? 285 8 Accounting Standards Review for Controllers and Finance Professionals 285 8 Sales and Use Tax Workshop: 6 hours of BABC content, 1 hour of ADOR content, 2 30-minute moderated sessions 285 8 Revenue Recognition: The New Perspectives 275 8 Payroll Taxes and 1099 Isseus: Everything You Need to Know 275 4 Accounting and Auditing Update for Nonprofit Organizations 180 4 Individual Income Tax Update 180 4 Applying the Lessons of Zappos to Nonprofits 180 4 Corporate Taxation: Advanced Issues 180 4 TBA 180 4 Maximizing Your Social Security Benefits 180 4 Cost Segregation and the Tangible Property Regulations 180 4 Individual Tax Planning Ideas for 2015 180 8 The Eight Hour MBA 275 8 Hot IRS Tax Examination Issues for Individuals and Businesses 275 8 Revenue Recognition: Mastering the New FASB Requirement 275 8 Multigenerational Financial and Tax Planning for Clients 275 8 Recognizing and Responding to Fraud Risk in Governmental and Not-for-Profit Organizations 275 8 Surgent’s Handbook for Mastering Basis, Distributions, and Loss Limitation Issues for S Corporations, LLCs, and Partnerships 275 Birmingham IND 4 CFO Update 190 Birmingham AA 4 Small Business Fraud: The Lessons Behind the Stories 190 Birmingham AA 4 Revenue Recognition: The New Perspectives 190 Montgomery AA 8 2015 Accounting & Auditing Update for the Real World 275 Auburn AA 4 2015 Accounting & Auditing Update for the Real World 180 Auburn Tax 4 Tax Planning Strategies for Small Businesses: Corporations, Partnerships and LLCs 180 Auburn AA 4 2015 Compilation and Review Update: Change is Here 180 Auburn Tax 4 Reviewing Individual Tax Returns: What Are You Missing? 180 Birmingham AA 8 TBA 285 Birmingham Other 8 Getting Things Done - Engaging People to Execute Effectively 285 Mobile AA 8 Revenue Recognition: The New Perspectives 275 Mobile Tax 8 Oil and Gas Taxation: Landowner & Investors 275 Mobile AA 8 2015 Accounting & Auditing Update for the Real World 275 Birmingham Other 8 Leadership and Retaining Talent: How the Generational Shifts Changing Leadership 285 Birmingham AA 8 Small Business Internal Controls, Security, and Fraud Prevention and Detection 285 Montgomery Tax 8 Basis Calculations and Distributions for Pass-Thru Entity Owners - Schedule K-1 Analysis 295 Huntsville AA 8 2015 Accounting & Auditing Update for the Real World 275 Montgomery Tax 8 Federal Tax Update - Individual & Business Current Developments 295 Tuscaloosa AA 4 2015 Accounting & Auditing Update for the Real World 180 Tuscaloosa Tax 4 Sirote’s Hottest Tax Topics for CPAs 180 Tuscaloosa AA 4 2015 Compilation and Review Update: Change is Here 180 Tuscaloosa Tax 4 Waiting for topic selection 180 Birmingham Tax 8 Federal Tax Update - Individual & Business Current Developments 295 Mobile Tax 8 Income Taxation of Trusts and Estates: Planning and Preparation of Form 1041 275 Mobile Tech 8 Excel Best Practices 275 Montgomery Tax 8 Red Flag Issues: Areas the IRS Attacks in Examinations 275 Montgomery Tech 8 Technology for CPAs - Don’t Get Left Behind 275 Montgomery Tax 8 TBA 275 Advanced Excel 275 Montgomery 4AA/4Other 8 Birmingham AA 8 FASB’s “Big 3” - Revenue Recognition, Leases and Financial Instruments 190 Birmingham Tax 4 Sirote’s Hottest Tax Topics for CPAs 190 Birmingham Other 4 Shorten Month-End: Closing Best Practices 190 Birmingham AA 4 Cost Segregation and the Tangible Property Regulations 190 Birmingham Tax A Practical Guide to Small Business Health Insurance and Fringe Benefits: 2015 and Beyond 190 Birmingham Other 4 Cash Management Techniques, Systems & Solutions 190 Birmingham AA 8 Recent Frauds Occurring in the Not for Profit Entities and Governments 285 Birmingham Tax 8 Complilation and Review Guide and Update 285 Birmingham Other 8 Annual Financial Management Spotlight: 4 Current Topics 285 Birmingham AA 8 Audit Workpapers: Documenting and Reviewing Fieldwork 285 Birmingham Tax 8 Getting More Active with the Passive Acitivity Rules and the Net Investment Income Tax 285 Birmingham Tax 8 Surgent’s Ferderal Tax Camp 285 Birmingham AA 8 Governmental and Not-for-Profit Annual Update 285 Birmingham Tax 8 Surgent’s Individual and Financial Planning Tax Camp 285 Montgomery AA 8 Applying the Uniform Guidance for Federal Awards in Your Single Audits 275 Montgomery Other 8 Transforming Your Role as Controller to Business Partner 275

THE ALABAMA CPA MAGAZINE

EDUCATION EXPRESS

Save $25 when you register at least 10 days before class date.

Enjoy high quality learning from the comfort of your own office at the tap of a computer key. ASCPA webinars cover a wide range of topics while offering convenience and great value. Register on-line, www.ascpa.org. No.

Title

Date

WEB330

Professional Conduct and Ethics Webcast: Anticipating and Preventing

4/2/2015

138

188

WEB331

Frequent Frauds Found in Governments and Not-for-Profits

4/13/2015

275

375

WEB332

Top10 Tools for CFOs to be More Effective Business Partners

4/17/2015

275

375

WEB333

Accounting Fraud

4/17/2015

275

375

WEB334

Controls, Risks and Financial Reporting

4/22/2015

275

375

WEB335

Practical Guide to Accounting Fraud

4/23/2015

138

188

WEB336

Professional Conduct and Ethics Webcast: Anticipating and Preventing

4/23/2015

138

188

WEB337

Create Reports that Matter: Turn Information into Action

4/24/2015

275

375

WEB338

Financial Reporting Framework for SMEs

4/24/2015

138

188

WEB339

Cost Principles for State and Local Governments and Nonprofit Organizatio

4/27/2015

275

375

WEB340

GAAP Update

4/27/2015

275

375

WEB341

Health Care Conference

4/28/2015

325

425

WEB342

Marketing the CPA in Public Practice

4/30/2015

275

375

Hours

Member Fee Non-Member Fee

THE ALABAMA CPA MAGAZINE

Working together, we get deals done. Specializing in the sale of accounting firms and tax practices, our team at Accounting Biz Brokers is committed to providing personalized business brokerage services to our clients and customers.

THE ALABAMA CPA MAGAZINE

Presorted Std US Postage PAID Permit No. 131 Montgomery, AL APRIL

2015

The Alabama Society of Certified Public Accountants 1041 Longfield Court P.O. Box 242987 Montgomery, AL 36124

C L A S S I F I E D

CAROLYN T. YOUNG MARCH 1, 1927- NOVEMBER 29, 2014 MONTGOMERY, ALABAMA, CERTIFICATE #801

YOUR PRACTICE WANTED: We are North Americaâ&#x20AC;&#x2122;s leader in practice sales. Let us navigate the complexities, locate the best match from a deep pool of qualified and serious buyers, and optimize your return on the years invested in building your practice. If you are considering a change, contact Alabama broker Lori Newcomer, CPA, at (888) 277-6040 or LNewcomer@apsleader.com for a confidential discussion.

Successful transitions require experienced, confidential, professional services you can trust. This is what Akins Professional Brokerage provides. Specializing exclusively in the brokerage of CPA firms, we have no upfront fees. List your firm w/ a professional. Call David Akins, CPA, at (877) 2770272. Visit our website at www.ProfessionalCPAbroker.com.

FINANCIAL ANALYST WANTED: Civil Air Patrol (CAP), a 501c(3), is seeking a financial analyst to work at national headquarters in Montgomery. CAP is a volunteer organization of 58,000 members which conducts aerospace education and cadet programs, as well as Air Force flying missions. Applicants should have a degree in accounting; at least 5 years of broadbased accounting experience dealing with GL, AP and budgeting. Skills must include all Microsoft Office products. CAP offers a competitive salary and benefits including a 401(k) with company match, BCBS health insurance, flex spending account, companypaid life insurance, CPE allowance, plus vacation and sick leave. Submit your resume to HR@caphq.gov or fax to 334.953.9906. Go to www.gocivilairpatrol.com for additional information about Civil Air Patrol.

Ms. Young was the first woman partner at Jackson Thornton and blazed a trail for two subsequent generations of women in the profession. She retired in 1989 and enrolled at Huntingdon College, earning an undergraduate degree in English and a masterâ&#x20AC;&#x2122;s of liberal arts degree from Auburn Montgomery. She served as volunteer treasurer for the Montgomery Museum of Fine Arts for many years.

Contribute to the ASCPA archive as we celebrate 100 years. Send photos, early CPA certificates and other memorabilia. Contact Jeannine Birmingham jbirmingham@ascpa.org