CONNECTIONS | March - April 2020 by Alabama Society of CPAs

M A R C H

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A P R I L

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In Uncertain Times, You Have More Control Than You Realize Page 8

The Biggest Cyber Risks for Your Company and How to Manage Them Page 10

RESCHEDULED FOR FALL 2020 We’ll hear from leaders in the accounting profession, celebrate the ability to socialize, and enjoy a beautiful view of The Magic City. We can’t wait to see you this fall at The Club in Birmingham!

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TA B L E O F C O N T E N T S

FEATURES

COLUMNS TAX

BABC SALT Corner 20 New Ruling Gives Physicians Hope in Claiming the Rural Physician Tax

TECHNOLOGY

The Evolution of Accounting through Technology 23 A New Series with Past Chair Marc Hamilton, CFO & Treasurer, CDG Engineers & Associates

2020 Business & Industry CPE Schedule

CPE courses for CFOs, controllers, & CPAs making moves in B&I for their companies.

In Uncertain Times, You Have More Control Than You Realize

“…while times are highly uncertain in an allencompassing way, this global disruption on a massive scale is also creating new ways to have a positive, significant impact on the present & the future.”

The Biggest Cyber Risks for Your Company and How to Manage Them Arm yourself and protect your organization with these insights.

Responding to COVID-19 with Remote Access?

Inside the ASCPA Message from Jeannine................ 4 Message from the Chair................ 5 Member News............................ 14 Remembering............................. 16 ASCPA Across Alabama.............. 19 Classifieds................................... 26

Pay attention to security as you WFH (work from home)!

We’re @ALsocietyofCPAs on Facebook, Instagram, & Twitter— follow us to see the latest from the ASCPA. March/April

MESSAGE FROM JEANNINE

efore this issue could go to print, we had to press pause and reconsider how to organize events and provide resources that add value to your professional life, your organization and the teams you manage. So, our traditional Business & Industry issue looks a little different this year. You will read more about how to effectively utilize technology for your organization; the importance thereof we now know more than ever. Using technology tools is something that the ASCPA team had to transition to on a dime and the team has worked very hard and very well in a remote environment. In this issue, you will also notice we have less about our upcoming events, because we are reconfiguring them to be hosted completely online (like the Employee Benefit Plans Workshop) or we are rescheduling them for a later date (like our Annual Meeting). This is an unprecedented time in our history. The COVID-19 pandemic is having an impact on the health of our loved ones, the businesses we rely upon, the health of the global economy, and the way we live our daily lives. As we all continue to navigate through these unique and evolving challenges, we want you to know that ASCPA is here for you. In our more than 100 years of business, we’ve most recently weathered with you the storms of the dot com bust, September 11, 2001, the 2008 financial crisis, the recession that followed, and major weather events— and

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throughout this shared journey we have worked to support and sustain our profession, our members, and our partners. As we address a pandemic that will no doubt become a chapter in the history books, our commitment to you will not waiver. We know our members of all sizes are under stress and that some of you are facing significant hardship. We are working to find new ways to meet your needs and will draw on our technology and resources to make a difference for you. ASCPA is more committed than ever to keeping you connected to our profession when it matters most. Leaders are prepared to cover guidance that is necessary to understand the latest legislation, new deadlines, and stimulus package. Please look for easy ways to connect and learn via on-demand webinars and small firm forums all offered through live-stream, webinars, Zoom and more. The ASCPA team will continue to share the latest updates via email and our coronavirus resource page— www.ascpa.org/coronavirus. You can also expect deep dives into these topics in our upcoming issues of ASCPA Connections. Thank you for being a member of the ASCPA and for the trust you place in us every day.

Jeannine

MESSAGE FROM THE CHAIR

The Coronavirus is affecting our country and the world in ways that will bring changes we can’t yet imagine. I am just 58 and, in my lifetime, I have not witnessed anything like what we are seeing occur around the world. My Mother is a child born before the Great Depression and World War II and has a better understanding of something more devastating with even greater sacrifices. However, she reminds me, our country prevailed due to its people. While there are countless fears regarding the unknowns, the economy, and our business model, I believe we should always look at challenging times as a catalyst for embracing change and maintain a determination of doing whatever it takes to recover. This issue of Connections focuses on our members in business and industry. Our friends serving organizations in businesses and industries are vital parts of the progress those organizations achieve. B&I CPAs speak the language and contribute to progress, creativity, innovation, and financial performance with a depth of capability we all appreciate. There organizations need them more than ever, right now. And, let’s not forget, without B&I, CPAs firms don’t have clients to serve! Business and industry are facing the same exponential changes firms are facing. The change in how we work, the technology we use and the way we serve customers/ clients is quite similar. CPAs in industry have critical roles in advocating for and supporting

the need to evaluate future disruption and change. Recently, I heard well known futurist, Pascal Finette speak on disruption and the incredible opportunities that are available for businesses. Finette emphasized businesses must prepare for the opportunities created out of disruption. He believes small and large companies focused on niches are prospering while companies (small or large) that are too diverse are suffering. Check out Finette’s videos on You Tube. They are worth the watch. Even a time of crisis, I believe Finette’s points still apply. Focus on serving those industries you know best. Your expertise in difficult times is needed even more as we all look at the relief effort. As spring and summer arrive, we face many unknowns. I encourage you to take this time to form a research group or committee dedicated to finding new, better ways to serve those who are impacted by this pandemic. We are needed as advisors and counselors more than ever regardless of whether you are a practitioner, educator or a professional working in industry. Organizations need recovery help and help creating new strategies for their future. As you probably expect most of ASCPA live programming has been postponed or canceled. The newsletter and our social media updates will provide more information

on many changes to our education calendar, Annual Meeting and the like. Our Education Team has taken significant steps to transform options to obtain needed education to insure you obtain your required hours and have content available that benefits professionals in this time. In closing, thank you for your continued support of ASCPA. As Chair, I see the incredible hard work Jeannine and the entire ASCPA staff do on behalf of you, as members and CPAs. In this time of crisis, the entire team’s responsiveness to support members and organizations in need is even more obvious. When you have the chance to offer thanks to them, please, do. Their organizations are why your state society is so well respected around this great nation.

Dennis

March/April

B&I CPE SCHEDULE

010 Controller’s Update: Today’s Latest Trends Monday, June 22, 2020 Spectrum Beach Club 8:00AM-11:30AM Instructor: Marc Hamilton Finance: 4 013 The Changing Role of the Controller: Advancing from Tactical to Strategic Monday, June 22, 2020 Spectrum Beach Club 12:30PM-4:00PM Instructor: Marc Hamilton Business Management and Organization: 4 016 Critical Issues That CPAs in Industry Will Need to Face This Year Tuesday, June 23, 2020 Spectrum Beach Club 8:00AM-11:30AM Instructor: Marc Hamilton Accounting: 2, Taxes: 2 – Total: 4

019 Enterprise Risk Management Concepts and Strategy for Small and Medium-Sized Companies Tuesday, June 23, 2020 Spectrum Beach Club 12:30PM-4:00PM Instructor: Marc Hamilton Management Services: 4 022 Top 10 Technology Risks and Trends Every CPA Should Know Wednesday, June 24, 2020 Spectrum Beach Club 8:00AM-11:30AM Instructor: Marc Hamilton Auditing: 2, Information Technology: 2 – Total: 4 025 Project Management for Small and Medium-Sized Enterprises Wednesday, June 24, 2020 Spectrum Beach Club 12:30PM-4:00PM Instructor: Marc Hamilton Management Services: 4

028 K2’s Excel Financial Reporting and Analysis Tuesday, August 18, 2020 Embassy Suites Huntsville 8:00AM-3:30PM Instructor: Tommy Stephens Accounting: 8

036 K2’s Advanced Excel Data Magic Wednesday, August 19, 2020 Pelham Civic Complex 8:00AM-3:30PM Instructor: Tommy Stephens Accounting: 8

030 Advanced Controller and CFO Skills Tuesday, August 18, 2020 Alabama Society of CPAs 8:00AM-3:30PM Bruce Shepard Finance: 8

037 The Eight Hour MBA Wednesday, August 19, 2020 Pelham Civic Complex 8:00AM-3:30PM Instructor: Jennifer Elder Business Management and Organization: 8

034 Construction Contractors Advanced Issues Wednesday, August 19, 2020 Alabama Society of CPAs 8:00AM-3:30PM Bruce Shepard Auditing: 8

043 The Value-Added Controller Thursday, August 20, 2020 Pelham Civic Complex 8:00AM-3:30PM Instructor: Jennifer Elder Business Management and Organization: 8

GO TO WWW.ASCPA.ORG FOR NEW CLASSES AND MOST CURRENT INFORMATION. 6

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B&I CPE SCHEDULE 053 K2’s Case Studies in Fraud and Technology Controls Monday, August 24, 2020 Admiral Hotel 8:00AM-3:30PM Instructor: Mac McClelland Auditing: 8

068 K2’s Budgeting and Forecasting Tools and Techniques Wednesday, August 26, 2020 Alabama Society of CPAs 8:00AM-3:30PM Instructor: Tommy Stephens Computer Software & 055 Enterprise Risk Management Applications: 4, Accounting: for Small and Medium-Sized 4 – Total: 4 Companies Monday, August 24, 2020 088 Controller’s Update: Today’s Pelham Civic Complex Latest Trends 8:00AM-3:30PM Monday, September 21, 2020 Instructor: Marc Hamilton Embassy Suites Huntsville Management Services: 8 8:00AM-11:30AM Instructor: Marc Hamilton 060 K2’s Advanced Excel Finance: 4 Tuesday, August 25, 2020 Alabama Society of CPAs 090 Risk, Cost, and Cash 8:00AM-3:30PM Management for Controllers and Instructor: Tommy Stephens Financial Managers Computer Software & Monday, September 21, 2020 Applications: 4, Accounting: Embassy Suites Huntsville 4 – Total: 8 12:30PM-4:00PM Instructor: Marc Hamilton 061 Enterprise Risk Management Management Services: 4 for Small and Medium-Sized Companies 094 Developing Your Digital Tuesday, August 25, 2020 Mindset Alabama Society of CPAs Tuesday, September 22, 2020 8:00AM-3:30PM Pelham Civic Complex Instructor: Joann Cross 8:00AM-11:30AM Management Services: 8 Instructor: Marc Hamilton Business Management and 062 Project Management for Organization: 4 Finance Professionals Tuesday, August 25, 2020 102 Change the Way You Work: Pelham Civic Complex Success as a Virtual CFO 8:00AM-3:30PM Tuesday, September 22, 2020 Instructor: Marc Hamilton Pelham Civic Complex Management Services: 8 12:30PM-4:00PM Instructor: Marc Hamilton 064 Analytics and Big Data for Business Management and Accountants Organization: 4 Wednesday, August 26, 2020 Pelham Civic Complex 8:00AM-3:30PM Instructor: Marc Hamilton Finance: 8

108 K2’s Best Word, Outlook, and PowerPoint Features Wednesday, September 23, 2020 Pelham Civic Complex 8:00AM-11:30AM Instructor: Tommy Stephens Computer Software & Applications: 4

156 Cybersecurity Update Wednesday, September 30, 2020 Admiral Hotel 8:00AM-11:30AM Instructor: Marc Hamilton Information Technology: 4

158 ABCs of Blockchain – Beyond the Hype; the Basics of What 114 Real World Ethics Update for Business Needs to Know CPAs in Industry Wednesday, September 30, 2020 Wednesday, September 23, 2020 Admiral Hotel Alabama Society of CPAs 12:30PM-4:00PM 8:00AM-9:40AM Instructor: Marc Hamilton Instructor: James Martin Information Technology: 2 Ethics: 2 LS030 Advanced Controller and 116 K2’s Excel Charting and CFO Skills Visualizations Tuesday, August 18, 2020 Wednesday, September 23, 2020 Webcast Pelham Civic Complex 8:00AM-3:30PM 12:30PM-4:00PM Instructor: Bruce Shepard Instructor: Tommy Stephens Finance: 8 Computer Software & LS034 Construction Contractors Applications: 4 Advanced Issues 123 K2’s Remote Access for Wednesday, August 19, 2020 Small Businesses Webcast Thursday, September 24, 2020 8:00AM-3:30PM Pelham Civic Complex Instructor: Bruce Shepard 8:00AM-11:30AM Auditing: 8 Instructor: Tommy Stephens LS061 Enterprise Risk Information Technology: 4 Management for Small and 130 K2’s Implementing Medium-Sized Companies Internal Controls in QuickBooks Tuesday, August 25, 2020 Environments Webcast Thursday, September 24, 2020 8:00AM-3:30PM Pelham Civic Complex Instructor: Joann Cross 12:30PM-4:00PM Management Services: 8 Instructor: Tommy Stephens Auditing: 4 133 Top 10 Technology Risks and Trends Every CPA Should Know Thursday, September 24, 2020 Pelham Civic Complex 12:30PM-4:00PM Instructor: Greg Clark Auditing: 2, Information Technology: 2 – Total: 4

GO TO WWW.ASCPA.ORG FOR NEW CLASSES AND MOST CURRENT INFORMATION.

March/April

MA-UncertainTimes.indd 1

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Traditionally, when an individual or organization fears change, it has something to do with digital technology disrupting their status quo. Will something autonomous replace my job? What if something is created that puts me completely out of business? Aside from digital transformation, another wave of fear comes from new, fast-moving competition and the threat of loss of relevance and market share. I have discussed at length these fears and many more, and how to become more anticipatory, paying attention to the Hard Trends that are shaping the future both inside and outside of your industry, and how to see disruption and change before they strike, and most importantly identify and act on the opportunities they represent. Few would have thought that in the early stages of 2020, our economy would be in a downturn, we would be instantly converted to remote work or, unfortunately for some, laid off, and we would be quarantined to our homes due to a global pandemic. REAL-WORLD DYSTOPIA Whether you’re in business or not, ever since the Great Recession about a decade ago 8

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it seems the majority of individuals will not admit to their tendency to sleep with one eye open on the economy. This “hope for the best but expect the worst” attitude can be useful, but it can also be dangerous, both for your health and well-being, and your entrepreneurial ability to see and act on the many new opportunities disruptive change presents. Unfortunately, the COVID-19 pandemic has, to a great extent, suppressed our positive, innovative mentality as a species, and has sent many of us into a primordial tailspin of trying to get back to the way things were — the status quo. Due to fear, we are finding ourselves in a real-world dystopian society, where individuals buy in bulk unnecessarily, prepping for the end of the world. The pandemic will end and we will recover to another new version of normal. What if we made the new post-pandemic normal much better than what we had before? Is that possible? It sure is, if we get past fear and reacting to the next disruptive problem and become anticipatory, using the power of disruptive change to create a better tomorrow for all.

Keep in mind that while times are highly uncertain in an all-encompassing way, this global disruption on a massive scale is also creating new ways to have a positive, significant impact on the present and the future. GOING REMOTE, NO MATTER WHO A global pandemic, shutdown, and quarantine are very similar to digital disruption: They know no boundaries and will disrupt every industry there is. However, what this pandemic disruption is showing us is that many organizations are quickly shifting to reposition their workforce to new roles or remote roles by digitally banding together and working efficiently from a distance. It is easy to consider going remote when you have a desk job or a career that is already rooted in flex-time industries. However, what about those that don’t have it as easy? Virtual reality and augmented reality (VR and AR) are two technologies that have started gaining traction in recent years, given the exponential changes of the Three Digital Accelerators of bandwidth, computing power, and processing power that I have discussed since the early 1980s. Now more

than ever, we can see industries — which ordinarily are unable to go remote because they were based on the need for a customer to be physically present — figure out ways to provide a remote customer experience. An incredibly outside-the-box example can be found by way of museums, zoos, and even theme parks going remote, as discussed in a recent Insider article. Monterey Bay Aquarium and even Walt Disney World have gone remote using live-streaming video and a form of virtual reality applications like Google Street View, so guests having to cancel their vacation can still “walk through” Disney World with their families for something to do. If Walt Disney World, an in-person entertainment giant with visceral experiences, can find a way to go remote, imagine the remote possibilities in several other industries around the world. INNOVATION IS NEEDED MORE THAN EVER While our worlds may seem to be in a period of indefinite stasis, the world and peoples’ needs don’t stop. A Hard Trend most people take for granted is that there are more than 500 cycles that continue, such as the sun setting tonight and rising tomorrow, the stock market going down and going up, and the pandemic beginning and ending. If you have followed my writings, you know that I want us all to become positive disruptors, creating the disruptions that need to happen in order to make the world a better place for all. Being a disruptor during times like these might sound contrary to what people want. However, when you’re a positive disruptor, you choose significance over success, focusing much less on you and what you have done, and more on what you can do for others in a significant way. When you look for ways to elevate your significance in times like these, you can find new ways to change your community, your state, your nation and, if you think big enough, even the world for the better. I can’t think of a more needed time than right now. Ask yourself: What can you and your organization do now that would have a significant impact on others? Stop looking at this economic and social slowdown as a time to wallow in the disruption of your status quo. It is also a free

pass to innovate as much as you can! An identifiable Hard Trend based on the science of cycles is that the pandemic will end and the market and economy will bounce back. So in the meantime, focus on the positive difference you can make and what you can disrupt in a positive way – what you can do now to make a difference by helping others. The needs are massive and so are the opportunities to make a significant difference! LOOKING FOR OPPORTUNITY IN HELPING OTHERS Consider this: Perhaps your organization has shifted to remote work with ease, whereas a customer of yours in a similar industry is struggling and falling behind. Is there a way to help them now? What if, in this unusual time of need, you didn’t charge them for the help? Would they remember that generosity in the future? This pandemic has inadvertently leveled the playing field. Therefore, no one is safe from disruption, and this global disruption is happening a lot faster than digital disruption. We’re all in the same boat, so one major way to innovate is to find ways to help your customers through this in ways that you haven’t thought of before. You’re thinking too small if you are thinking of offering them a discount on your product or service. It’s better to look at their desperate needs now and ways that help them stay afloat, which in turn might help you stay afloat. This concept isn’t solely constrained to business and customer relationships. This touches on the topic of thinking about your employees who rely on you. You may be in business as a unified organization, but an employee now working remotely with kids at home and having to now think in terms of profits and losses in their personal life has unmet needs as well that you need to think about and act on. As you work to keep the doors open, what are you doing to take care of your own? Let’s return to the entertainment industry with an example of the National Basketball Association shutting down during this crisis. While it is no secret that owners, players, and team affiliates will be financially okay during this situation, the workers at the snack bars, restaurants, and merchandise stores will feel a major financial impact, if they can survive at all. However, many teams have stepped up and donated portions of

their salaries to cover the losses the service employees will feel while out of work, which in turn incentivizes them to continue to work for the stadiums and gives them a sense of belonging to the organization. That has already created a positive change throughout the rest of the NBA, as other teams follow suit and help their fellow man and woman when in need. This positive disruption is spreading to other sports faster than any virus! ANTICIPATION WILL GET YOU THROUGH THIS Hard times will pass, but the Hard Trend in times of complete uncertainty is that a new day will dawn with new opportunities to make a significant difference unfolding with it. There will be a tomorrow, so what are you doing to anticipate, innovate, and seize the opportunity it brings with it? Are you using this pandemic to be a positive disruptor, or will COVID-19 close your business’s doors for good? It doesn’t have to. As my good friend W. Mitchell, who has been through several major accidents, says; “It’s not what happens to you. It’s what you do about it.” The way I see it, COVID-19 isn’t our biggest problem, it’s what we are doing, or not doing about it. Those of you who have read my latest book, The Anticipatory Organization, know one of my principles is this: Take your biggest problem and skip it. The real problem for your business isn’t the virus, it’s how you are reacting to it. Don’t panic. Focus on defining the real problem both you and your customers are having and use the certainties found in Hard Trends to reveal a solution. There will be a future after the pandemic. If you are anticipatory, pre-solving predictable problems before you have them and becoming a positive disruptor creating the transformations that need to happen, you will find the future is bright. Daniel Burrus is considered one of the world’s leading futurist speakers on global trends and disruptive innovation. The New York Times has referred to him as one of the top three business gurus in highest demand as a speaker.

March/April

The Biggest Cyber Risks for Your Company and How to Manage Them by Paul Perry, FHFMA, CITP, CPA

Rapidly-advancing technology and the need for security produce unique risks for the businesses of today. You can begin to arm yourself and protect your organization from threats by knowing the different types of common cyber risks and how you can prepare your company to meet each of them head on.

CYBERCRIME AND CYBERATTACK RISK

The most obvious cyber risk to be aware of are those malicious attempts to exploit your data from outside your organization. The effects of any cyberattack can be debilitating for a business, but not all cybercrime tactics look the same. As technology has progressed, the variety of cyber schemes has too, and there are many different types of attack methods that cyber criminals employ.

Ransomware

Ransomware attacks—as the name indicates—occur when a hacker encrypts or locks your system’s information and holds it for ransom. Hackers will often demand pay in Bitcoin, or another type of cryptocurrency, within a few days under the threat that if the ransom is not paid, your data will be lost or destroyed.

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Phishing

Phishing attacks are often conducted through emails that target a business’s employees and contain a malicious link disguised as a familiar contact or company. These emails typically look like they’re from legitimate organization asking for a password or credit card information.

Fileless Attacks

Unlike other common malware attacks, like phishing and ransomware, fileless attacks don’t require a user’s click to install the software. Instead, hackers exploit a computer’s random access memory (RAM) and inject malicious code there.

Denial of Service

A Denial of Service (DoS) employs several bots to spike traffic to your website. That spike in traffic will put a strain on your servers, which can result in legitimate traffic not being able to access your company’s website.

EMPLOYEE EDUCATION AND BEHAVIOR RISK

Unfortunately, risk doesn’t just come from outside of organizations. Many external threats increasingly target those individuals within your company, making internal risk higher than ever before. Even if you, as a business leader, know all of the latest types of cyberattacks and how to protect against them, your employees may not. Employees are responsible for 60% of the cyberattacks on businesses; some of this activity is accidental, and unfortunately, some is not. Accidental errors could include an employee interacting with a malicious email on a company device, sub-par IT practices or having poor password habits. Though not intentionally malicious, these behaviors open the door for outside threats from the inside. On the other hand, there is also intentional activity that causes risk to your organization from the inside. Fraud costs U.S. businesses $50 billion each year.

COMPLIANCE RISK

As consumers have become more concerned about their privacy, legislators worldwide are responding with rules and regulations to govern how data is collected and stored. One regulation that went into effect about a year ago is the General Data Protection Regulation (GDPR), a European standard that demands companies tell consumers what data is being collected and how they can opt out of

data collection. In the United States, there’s not a federal law that governs how data is collected and stored by businesses, but there are some laws that govern specific industries, such as HIPPA for health providers and the Bank Secrecy Act for financial institutions. I also often see that many companies that have third party credit card processors don’t realize the processors are storing credit card numbers on their servers, which can cause many financial and compliance problems for a business.

when. It’s crucial for your company to have a plan of action in responding to risk—both proactively and retroactively. You’ll be in a position to minimize risk, prevent cyberattacks and keep your company in compliance, but you’ll also be able to identify a cyberattack faster and minimize the damage if one does occur. Set standards, procedures and guidelines, and consistently revisit their effectiveness, how they are being implemented and any updates or advancements in cybersecurity or technology.

Many states have also created their own stringent data privacy regulations that set requirements for business operations. All 50 states have some form of breach notification law that dictates how a business should attempt to prevent and respond to cyber threats and data breaches, though specific regulations vary from state to state.

Train Your Employees and Consider Internal Controls

Compliance risk is projected to only increase for businesses. Ultimately, it’s your business’s responsibility to be aware of the regulations in the physical locations and industry areas in which you conduct business.

MANAGING CYBER RISKS

Considering these risks and places where your business may be susceptible, where do you begin to protect yourself? While each risk merits specific precautionary measures, there are some broad strokes that you can take in your business in order to set the foundation of effectively protecting against them. There are a few things you can do now to minimize your risk and any future damages.

Have a Risk Assessment Performed

A great place to start is with having a risk assessment done on your systems. A risk assessment takes a look into your company’s infrastructure to identify weaknesses and risks which can exist independent of vulnerabilities. Regardless of how savvy your internal IT may be, having an outside, objective and professional opinion about where your business may be vulnerable can be a huge advantage when it comes to protecting against cyber risk. Having a risk assessment performed allows you to act in the specific ways that will be most advantageous. This can help your business prioritize what vulnerabilities and risks to focus on, understand how severe the threats to your business might be and take action in the most effective way possible.

Develop a Plan of Action

Most IT professionals operate from the standpoint of not if a cyberattack happens, but

It’s important to train your team to identify cyberattacks so they don’t become the cause of one. If you don’t have one already, create a training program and educational materials that will help your team to understand cyber risks and how they can protect your company as its first line of defense. Equipping your employees to be proactive about identifying risk will not only minimize your risk for internal cyber issues, but it also empowers them to identify other compliance or security related issues within their respective job functions. It’s also important to consider your business’s internal controls, which can mitigate errors and prevent fraudulent activity. The majority of fraud carried out in small businesses could be prevented through improved corporate governance and better internal controls.

Know Your Regulations

Take the time to familiarize yourself with the specific regulations your company should be abiding by. Your industry, operations and location may already be dictating how you should be managing risk and protecting data. Compliance regulations change frequently, and new regulations are introduced all the time, so it’s important to stay looped in and informed of what is expected of your business. You may find that it’s helpful to partner with a compliance professional to help ensure that your company is checking all of its boxes.

KNOWING THE RISKS AND PROTECTING AGAINST THEM Each company’s risk is unique and different, so at the end of the day, the most effective solutions are going to be those that have your specific company, operations, employees, locations, vulnerabilities and strengths in mind. Familiarizing yourself with what the risks are and learning how to manage them is the first step to sound security for your business.

March/April

WHAT CAN THE ASCPA DO FOR YOU? Current ASCPA members told us that the ASCPA has helped them...

+ ACHIEVE + E A + EACH + E E I E + E HI + AC IVA E + I H + E CE + A VA CE + IE HI + A E HI + A V CA E + IV + AI + + EC + + A E + E + CE E A E + I AC + CE I ICA I + I E CE + A I + E E H + C I E CE + I + EC E + C EC + I E I + E VE + C EA E + I VI E + HA E + E E I E + E E + E HE + EVE + + EA + EA + H IVE + A + IVE + + A E + E E + I E + IVA E + E C A E + VA E + I + E HA CE

Visit www.ascpa.org/my-bene its to learn more, and be sure to renew your membership in April to keep your bene its year round.

Your Chapter dues Contribution Counts. Why we do what we do comes back to one thing—you. You, your organization, your career, and your community all have potential to advance, expand, persevere, and create an intentional legacy through the accounting profession. Last year, the ASCPA was able to give away $139,200 to future CPAs, local charities, & disaster relief across Alabama. Here is how it made a difference across the state. +++

Total Contributions from Chapter Dues in 2019

$139,200

those contributions supported:

$35,000

Chapter Scholarships to Alabama Accounting Students

$66,500

Educational Foundation Scholarships to Alabama Accounting Students

$37,700 Donations to Local Chapter Community Service Efforts

+++

PLUS, we hosted 42 chapter events across Alabama, ranging from community service projects to Bankers & Attorneys socials to CPE opportunities. We are just getting started! Now more than ever, we see the significance of investing in our communities, the profession, & opportunities for you to connect with other professionals. Check the box next to “Pay My Chapter Balance” when you renew your ASCPA membership to make your contribution count in 2020.

March/April

Get more involved in your local chapter by contacting Zack Camerio at zcamerio@ascpa.org.

MEMBER NEWS

The Alabama Senate has confirmed Governor Kay Ivey’s reappointment of Florence CPA and businessman Marty Abroms, President of Abroms & Associates in Florence, to the University of North Alabama Board of Trustees’ continued service in a new six-year term. Marty’s reappointment term begins on October 1 and extends through 2026.

BMSS is excited to announce two staff achievements. Member Todd Hindsman has been selected as a Business Council of Alabama (BCA) Board member for 2020. Supervisor Abigail Waddell passed the Certified Financial Planner exam and is now a Certified Financial Planner (CFP®) Brunson, Wilkerson, Bowden & Associates, P.C. is pleased to announce the following recent promotions in their firm. Ashley Hataway has been promoted to Shareholder. Ashley joined the firm in 2009. She is a CPA who specializes in audits of governmental, non-profit and HUD entities. Ashley also serves a variety of clients in tax and business consulting services. She graduated from Troy University with a Bachelor of Science in Business Administration in May 2008 and a Master of Business Administration in July 2009. Lee Steverson has been promoted to Manager. Lee earned his Bachelor of Science in Accounting from Florida State University in May 2013 and became certified as a CPA

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in 2020. Lee joined the firm in 2013. Lee serves a variety of clients in audit, tax and business consulting services. Steven Smith has been promoted to Manager. Steven earned his Bachelor of Arts with a concentration in accounting from Huntingdon College in May 2015 and his Master of Professional Accountancy from the University of South Dakota in August 2018. He became certified as a CPA in 2020. Steven joined the firm in 2015. Steven serves a variety of clients in audit, tax and business consulting services. Josh Riley has been promoted to Senior Accountant. Josh earned his Bachelor of Science in Accounting from Troy University in May 2017 and became certified as a CPA in 2019. Josh joined the firm in 2018. Josh serves a variety of clients in audit, tax and business consulting services. Barry Kennedy has joined First Southern State Bank and will serve as chief financial officer and Senior Vice President. Barry brings nearly 35 years of experience to his new position, after most recently serving as Shareholder of CK Business Solutions, PC in Albertville, an affiliation that spans 27 years. Prior to joining the bank, Barry specialized in audit, tax and consulting services to financial institutions, manufacturing, loan companies, as well as professional services companies. He earned a Bachelors of Science degree with honors in Business Management and Accounting from Jacksonville State University. In addition to being a member of the ASCPA and AICPA, Barry is a member of the Paul Harris Fellow of the Albertville Rotary Club and is a Past President and Charter Member of the Boaz Rotary Club. He previously served as the Chairman and Board member of the Albertville Chamber of Commerce, and as a member of Jacksonville State University, College of Commerce and Business Administration’s Board of Visitors. He has served as an USSF and AYSO Certified Soccer Official and coached youth soccer in Albertville for 10 years. He is also a member of the First Baptist Church of Albertville.

Carl Jamison of Tuscaloosa and a third-generation Shareholder in JamisonMoneyFarmerPC, was appointed to the Study Group for Gambling Policy. On February 14, 2020 Governor Kay Ivey on Friday signed Executive Order 719, which formed the Study Group for Gambling Policy. The Study Group is tasked with gathering detailed information to allow the governor, the Legislature, and the citizens of our state to make an informed decision on gaming expansion in Alabama. The Study Group is made up of 12 individuals representing a cross-section of Alabama interests, including legal scholars, law enforcement, public servants from state and local levels, clergy and successful members of the business community. At JamisonMoneyFarmer, Carl primarily works in the areas of tax planning and audit services to clients in the manufacturing, medical, retail, construction, and professional services industries. He received a Bachelor of Science in Accounting from the University of Alabama. Darren Neuschwander, Managing Member of Green Neuschwander & Manning LLC in Robertsdale, has been appointed to the AICPA’s Individual and Self-Employed Tax Technical Resource Panel for the 2020-2021 volunteer service year that will begin May 21, 2020 for a 12-month term. The panel will monitor legislative and regulatory activity on matters related to individual income taxation and self-employment tax; suggest areas for modifications to simplify and clarify individual tax provisions; maintain appropriate relationships with the IRS, Treasury, Congress and other government officials; provide oversight for task forces created to address specific issues related to tax law, regulatory rules and tax process relating to individual income taxation; collaborate with other organizations, such as the American Bar Association, as appropriate; act as a resource to assist the other AICPA committees, technical resource panels and task forces, as appropriate, on individual income tax matters. William “Wes” Russell, a member of Russell & Company, LLC, a public accounting firm located in Bessemer, was elected to the Boards of Directors of First Financial Bank.

Russell & Company, LLC works with small businesses in areas of tax and accounting. Wes has been with Russell & Company, LLC since July 2006. Prior to joining Russell & Company, LLC, he worked for KPMG, LLP from 2000 to 2006 and was a tax manager. Wes has a broad and varied community service background. He is currently serving on the Board of Directors of Bessemer Academy. He has served in prior years on the Board of the local YMCA and has served as President and Treasurer of the Bessemer Kiwanis Club. He also assists other local non-profits, including churches and foundations, in various advisory roles. Wes grew up in the McCalla, Alabama, community and graduated from McAdory High School in 1995. He received his Bachelor of Science in Business Administration with a concentration in accounting (1999) and a Master of Taxation (2000) from the University of Alabama. He and his wife live in Hoover with their three children where their family is actively involved in the Hoover City Schools System, Hoover Youth Sports, and Riverchase United Methodist Church. David Sturdivant, chief operating officer and chief financial officer of Russell Lands, has formally been elected to the Do it Best Corp. board of directors at their annual fall market Shareholders’ Meeting in Indianapolis. This is David’s first term on the 12-person board, the member-elected governing body ultimately responsible for securing the coop’s financial stability and driving its strategic direction. David joined Russell Lands as controller in 1993. Ten years later, he was named chief financial officer and ascended to chief operating officer in 2014. In May, Russell Do it Center was named to the 2019 Class of Hardware All Stars by Hardware + Building Supply Dealer magazine. David has always cared deeply about the communities in which he lives and works and has sought opportunities to give back through participation in a variety of organizations and boards. “It is a great honor to be selected to serve on this energetic and eminent board of an international co-op that exemplifies what it means to be member-driven and growth-ori

ented,” said David. “I promise to serve my fellow member-owners by helping them grow profitable and community-centered businesses.” Delvin D. Seawright, Ph.D., CPA, CGMA, CGFM has been chosen to serve as a director-at-large on the board of the Southeast Texas Chapter of the Texas Society of CPAs. He will serve a two-year term beginning May 1, 2020. Dr. Seawright, a member of the ASCPA Outof-State Chapter, is a 5th year assistant professor of accounting at Lamar University in Beaumont, Texas. He researches corporate governance, business ethics, and accounting education topics and teaches financial and governmental accounting courses. He has over 10 years of experience as an accountant with the State of Alabama. He earned his Ph.D., M.S. and B.S. degrees in accounting from Morgan State University, Alabama State University, and Spring Hill College, respectively. Paul Perry, member of Warren Averett and the practice leader of the Security, Risk and Controls Group, has been appointed to the AICPA’s Information Management and Technology Assurance (IMTA) Executive Committee for the 2020-2021 volunteer service year that will begin May 21, 2020 for a 12-month term. The AICPA’s IMTA Division serves members of the IMTA Section, CPAs who hold the Certified Information Technology Professional (CITP) credential, other AICPA members, and others who provide risk, fraud, internal control, audit, and/or information management services within their firms or for their employers. Paul will have the opportunity to support members and credential holders who leverage technology to provide assurance or business insight about financial-related information (direct and indirect financial data, processes or reporting) to support their clients and/or employers.

WHAT’S HAPPENING OUT THERE Anglin Reichmann Armstrong is starting the New Year right with a national Top Firm ranking through Forbes. In a U.S. survey vetted through a market research firm, Anglin joined 227 large and small firms as “the most recommended firms for tax and accounting

services in the U.S.” Anglin received special recognition for being among just 90 firms receiving the most recommendations for tax services and accounting services. The recognition comes from 1,800 independent survey nominations by corporate clients, enrolled agents, CPAs, CFOs and tax lawyers. Survey analysis included each firm’s depth of services, but also the level of value provided to clients. Firms receiving the most nominations were included in the lists. “When we received the news, we were pleased to see that survey participants independently recommended Anglin, including other CPAs who will refer our firm if they can’t take on the work,” noted Anglin’s Managing Partner, Gary Anglin, CPA. “It’s especially exciting to know we are recommended for both our tax and accounting service areas.” The “America’s Top Recommended Tax and Accounting Firms” are listed on the Forbes website for further recognition, including a short description of firm services. The corresponding article discusses the importance of evaluating CPA firm relationships considering tax law changes and increasingly complex tax and accounting issues for businesses and individuals. Anglin has spent considerable time positioning the firm for the future, including a strategic tax services merger in Florida in 2019 and a focus on business advisory services, niche industry consulting, assurance, peer review and complex tax and accounting planning for growing companies. “It appears that clients and other CPAs trust our strategy,” Gary Anglin said. “That feels good as we enter a new year.” BMSS is proud to be listed on America’s Top Recommended Tax and Accounting Firms 2020 by Forbes. BMSS is also proud to be named a Birmingham Business Journal “Best Places to Work” for 2019. The partners of Mason and Gardner CPAs LLC are pleased to announce the firm’s expansion into Clarke County effective January 1, 2020. Their office is located at 327 Alabama Avenue in Thomasville. From their initial office in Demopolis, Mason and Gardner CPAs has provided accounting and advisory services to individuals, businesses, and governmental entities in the surrounding area since 1986. The addition of the Thomasville office will allow Mason and Gardner CPAs to expand its services deeper into Southwest Alabama. March/April

Mobile, Alabama-based CPA firm Russell Thompson Butler and Houston, LLP (RTBH) has been named as one of America’s Top Recommended Tax and Accounting Firms 2020 by Forbes. Forbes Media partnered with market research company Statista to create the recommended listing through an independent survey of more than 1,800 respondents, including professionals working at tax and accounting firms (peers), tax attorneys, and CFOs. The final list included 227 firms which is 0.5% of the firms in the United States. RTBH is one of just seven Alabama firms to make the list and the only one in the Mobile Bay Area.

“Being named by Forbes as one of America’s Top Recommended Tax Firms is such an honor. I am proud of our team and know that this recognition is a result of the dedication and commitment of all of our team members to our clients,” said Skip Brown, RTBH Managing Partner. “At RTBH, we’re committed to providing expert guidance with today’s ever-changing tax laws. Our goal is to become our clients’ trusted advisor and to be a resource and business partner.” Two Alabama researchers were selected to receive a grant from the AICPA’s Assurance Research Advisory Group (ARAG) to support their Enhancing Audit Quality research. Marcus Doxey, Assistant Professor, and

Chez Sealy, Assistant Professor, University of Alabama whose research project is titled “The Effects of Assurance Level on Assurance Professionals’ and Financial Statement Users’ Qualitative Materiality Judgments.” The ARAG is comprised of representatives from academia and public practice. The group funds research projects addressing private company1 assurance topics that are of interest to practitioners. Selected research topics are shared annually through a call for interest. Approved research teams are eligible for access to firm personnel, peer reviewers and up to $10,000 in funding. The research funded by the ARAG will provide the profession with valuable insights into the factors that affect the quality of assurance services.

CELEBRATING THE FUTURE OF THE ACCOUNTING PROFESSION From offering scholarships, hosting a student interview day with firms across the state, to talking with students at accounting club meetings, ASCPA invests their time and resources into helping students grow and succeed. The best part about working with them is getting to learn from such caring and creative people. Hannah Donovan Student Member, Auburn University Montgomery 2019 ASCPA Intern + Scholarship Recipient

Support more students like Hannah when you contribute to the ASCPA Educational Foundation through www.ascpa.org/EdFoundation.

16 EdFoundation.indd ASCPA1 Connections

3/27/2020 4:55:50 PM

REMEMBERING MALLORY JACKSON July 15, 1958 – January 9, 2020 Mountain Brook, AL | Certificate # 4502 Mallory Jackson passed away on January 9, 2020 at the age of 61. She grew up in Mountain Brook and later attended Auburn University and UAB. She obtained her CPA certification and joined her family’s firm that was started by her grandfather. Mallory served as the treasurer for the Alabama Republican Party for two terms and was a founding member of the Shelby County Republican Women. For many years she owned the historic Jackson Four Mile Farm in Wilsonville, where she raised cattle, sheep and chickens. She also served as a board member for the fire department in Four Mile. She also was very involved with CFO camp at Camp Sumatanga in Gallant. She will be missed by many, many friends.

DAVIS SHELTON BURTON, JR. June 6, 1935 – January 12, 2020 Tuscaloosa, AL | Certificate #507 Davis Shelton “Buddy” Burton, Jr., age 84, of Tuscaloosa, passed away on January 12, 2020. Buddy grew up in Tuscaloosa in the Forest Lake neighborhood. He earned a Bachelor of Science degree in Accounting from The University of Alabama. He was a CPA with JamisonMoneyFarmer PC for 45 years including 14 years as Managing Shareholder. Buddy was a founding member and served as Chairman of the Community Foundation of West Alabama (CFWA) Board and was named a Pillar of the Community by the CFWA in 2018. He was also inducted into the

Tuscaloosa Civic Hall of Fame and served as Chairman of the Board of the Salvation Army. He served on many other boards including United Way, Tuscaloosa Estate Planning Council, Tuscaloosa Industrial Development Authority, and Tuscaloosa Parks and Recreation Authority, serving in multiple leadership roles in each of these organizations. He coached girl’s church league softball for 35 years and was inducted into the West Alabama Softball Hall of Fame. A lifelong member of Forest Lake United Methodist Church, he served faithfully in many capacities, including Council on Ministries Chairman, Finance Committee Chairman, Sunday School teacher, youth counselor, usher and greeter. He loved Alabama sports, and especially enjoyed attending UA basketball and softball games and traveling to the beach. Above all, Buddy was a beloved and devoted husband, father, mentor and friend to many.

GEORGE FRANCIS BOHORFOUSH, IV July 29, 1953 – February 19, 2020 Vestavia Hills, AL | Certificate # 1765 George Francis Bohorfoush, IV, 66, of Vestavia Hills passed away on February 19, 2020 surrounded by his loving family. George was an amazing husband, father and friend. The list of positive attributes he brought to those around him is long, but, if you knew George, his family takes solace in the fact that you knew all these things. George was born July 29, 1953 in Birmingham to Mr. and Mrs. George Francis Bohorfoush, III. George attended John Carroll High School in Birmingham. He went on to receive a Bachelor of Science degree in Accounting from the University of Alabama and continued his education to become a member of the ASCPA.

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ASCPA ACROSS ALABAMA

1 Jeannine with Scott Lane and Ross Dickens from AUM and Jonathan Avant from BBVA for Financial Literacy Day at AUM; 2 Enjoying Vulcan Park at the B&I Appreciation Conference; 3 Getting Answers from a B&I Tech Expert;

4 Industry Leaders at the B&I Appreciation Conference; 5 First Ever Auburn Interview

Skills Workshop; 6 Troy Accounting Students at the Interview Skills Workshop; 7 Meeting with University of Mobile Accounting Students; 8 Our Accounting Interview Workshop Experts

8 March/April

BABC SALT CORNER

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NEW RULING GIVES PHYSICIANS HOPE IN CLAIMING

THE RURAL PHYSICIAN TAX CREDIT

Governor Ivey in her State of the State address on February 4 argued forcefully that Alabama must do more to attract physicians (and nurse-practitioners) to practice in the rural, under-served areas of the state. Unfortunately, one of the only current tax incentives to do so—a $5,000 income tax credit that can be claimed over a 5 consecutive year period--has been the source of many audits and administrative and Alabama Tax Tribunal appeals. And more often than not, physicians claiming the credit lost, despite their (and their CPA’s) belief that they met all the requirements of the somewhat vague statute-- and in some cases even though their tax prep software confirmed their qualification. Good news. The Tax Tribunal recently held in favor of a rural physician while providing needed clarity on the criteria for the tax credit. Phillip & Jennifer L. Dean v. State of Alabama Department of Revenue, Docket No. INC.18569-JP (1/20/20). There, Chief Judge Jeff Patterson found that a doctor living in Muscle Shoals but practicing in nearby Sheffield and Russellville qualified as a “rural physician” practicing in a “small or rural community.” By way of background, in Thomasina Sharpe v. State of Alabama Department of Revenue, Docket No. INC. 17-452-JP (2/5/18), the Tax Tribunal parsed the definition of “rural physician”: he or she must: (1) be licensed to

practice medicine in Alabama; (2) practice and reside in a “small or rural community;” and (3) have admitting privileges to a “small or rural hospital.” A small or rural community is defined as a community that has less than 25,000 residents according to the latest U.S. decennial census and has a hospital with an emergency room. Ala. Code section 4018-131. In Sharpe, the Tribunal denied the taxpayer’s appeal because, although she lived in a rural community and commuted to a different rural community to practice, the community where she lived didn’t have a hospital with an emergency room. In the present case, the ADOR originally insisted that the physician both reside and practice in the same rural community. Thus, Dr. Dean didn’t seem to qualify for the tax credit because he resided in Muscle Shoals but practiced elsewhere. The taxpayer (and, we assume, his attorney-wife) argued articulately that the Sharpe decision was not intended to require this, but only that the community where the doctor resides and the community where he or she practices both constitute a “rural community” under the statute. All three cities have hospitals with emergency rooms, and each had a population below the 25,000 resident cap. At the Tax Tribunal, however, the ADOR dropped that argument and instead asserted that the four adjacent cities (known as

the Quad Cities) of Muscle Shoals, Florence, Tuscumbia, and Sheffield constitute but one “community” which has a combined population above the 25,000 cap. Since the statute uses the term “community” rather than “municipality,” the ADOR believed the Alabama legislature intended this application. The Tribunal instead relied on the language in the statute’s definition that references the latest decennial census as a clue to interpreting legislative intent. After analyzing U.S. census law, the Tribunal held that Alabama law does not allow aggregating municipal populations and therefore the definition of a rural community can only be applied to a singular geographical unit, not including surrounding areas. Accordingly, the ADOR was directed to issue the taxpayers their full refund claim, plus interest. The Tribunal’s new decision provides helpful guidance to physicians who are or who are contemplating practicing in a rural area of the state (and their CPAs) in applying for this credit. Since the ADOR didn’t pursue its original argument that a physician must both practice and reside in the same rural community, though, that issue may remain open. However, the Tribunal included in its Final Order the portion of the ADOR’s letter to Dr. Dean asserting that argument, and then proceeded to rule for him. That

may be a hint the Tribunal likely would have held for the doctor even if the state had pursued that argument on appeal. Although it’s unknown whether the ADOR plans to appeal, refund claims for other qualifying rural physicians are now in order, subject to the applicable statute of limitations. If the reader has any questions about the new ruling, please contact Bruce at bely@bradley. com or Will at wthistle@bradley. com.

A special thanks to our law clerk, Jack Pouchert, for his assistance in preparing this column. Jack is a 3L at Cumberland School of Law here in Birmingham and the Student Materials Editor of the Cumberland Law Review. 1

March/April

TECHNOLOGY

The Evolution of Accounting through Technology By Marc Hamilton, CFO & Treasurer, CDG Engineers and Associates In a series of articles throughout 2020, I will present a discussion of current technology implications on the future of accounting processes and particularly financial statement preparation. In these articles, we will look at many technological innovations that are impacting the accounting profession. I would contend that we could agree that we are living in an extraordinary time of digital change. Changes in both the work that we do and how we get it done has become so commonplace that it is difficult to understand what to do to avoid being left behind. Let’s consider how many of the accounting processes and financial reporting efforts are 22

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currently being disrupted by new technologies. Let’s also look more futuristically into detail about specific technology innovations that many believe will be even more transformational to accounting and the financial statement preparation processes very soon I would also contend that we are at a time in the evolution of technologies where there are several exciting technologies maturing in a “convergence” that will impact society in ways that we cannot yet imagine. Our profession continuously evolves, and as professionals we must recognize the necessity in continuing to gain better technology insight by developing a “digital mindset,” one which

requires welcoming the adoption of technology and challenges of implementing new practices. The AICPA offers a continuing education course titled “Developing your Digital Mindset” which focuses on the cultural implication of creating a digital mindset. The course material states that “the digital mindset involves seeking to implement and embrace effective digital solutions in as many areas and interactions as possible.” The immediate need to “think digital first” is nowhere more impactful for an organization than in accounting and reporting processes. Organizations can manage the risk of being left behind by strategically shifting to a culture that thinks digital first.

Since the origins of written language, civilizations have used accounting methods to track transactions and keep data organized. The first narrative ledgers date back to over 2,000 years B.C. with the emergence of barter and trade. As society adopted the use of “currencies” as a means of trade, the singleentry records became insufficient. In 1494, Italian monk Luca Pacioli laid the groundwork for modern accounting with the publication of a textbook which showed the benefits of a double-entry system for bookkeeping. Fast forward to the mid to late 1800s, when the industrial revolution and the appearance of corporations in America became catalysts for transforming these double entry bookkeeping

methods by establishing formal accounting practices and reporting. With the necessity to protect the public interest and standardize financial statement reporting, in 1896 the profession of accounting and the CPA credentialing process was first recognized. Over the next 125 years our profession moved from using simple adding machines through the introduction of the first IBM computers in the 1950s to the realm of computer software and use of the internet that we have today. Over this period of time our profession has learned to embrace technology tools as a foundation of efficiency in process. Electronic ledger systems and report writing tools have been mainstream since the introduction of personal computers, and it is very difficult to imagine how we could perform our reporting function without these technology tools. Let’s now think for a moment about the traditional financial reporting framework. We generally think of financial statement preparation as the process of organizing data from the general ledger trial balance into three prescribed financial report formats, the Balance Sheet, Income Statement and Cash Flow Statement. This effort doesn’t seem so difficult when stated so simplistically! However, what we know from the practical perspective is that this exercise is challenging. The organization required to prepare financial statements involves a complex and tedious series of activities. We are required to accumulate and assimilate diverse data from multiple sources while continually maintaining controls over the processes to minimize opportunity for error. Add to this effort the technical challenges of ever-changing standards and rules and the constantly evolving business transaction environment, and it is very easy to understand the necessity of technology efficiency.

In May of 2019 Wesley Bricker, the SEC chief accountant, spoke on the future of financial reporting. Bricker noted that “since its invention in 1989 the internet or world wide web has exponentially expanded the reach of information technology and has transformed the world and business.” He stated that “technology is a prominent force that has been a catalyst of profound changes to business models, business process accounting and auditing.” He further stated that “this can be demonstrated by recognizing the substantial amount of capital investment that the technology sector has attracted and an understanding that it represents a significant share of the economy.” Currently there are 71 companies belonging to the S&P 500’s information technology sector which represents 22 percent of the S&P 500 company’s total market capitalization. It is currently the largest individual sector in the S&P 500 index. Technology also affects how investors and users access and process financial information. On a typical day investors and other market participants access public company financial disclosure documents through the Electronic Data Gathering Analysis and Retrieval system, or Edgar, over 41 million times, and that is in a single day. The opportunities and benefits that technology provides also comes with risks and complexities. Data security and privacy concerns have become prominent enterprise risks, and responding to these risks creates profound challenges. In a later article we will review in some detail cybersecurity risk fundamentals. Henry Ford is often quoted as saying “if you always do what you’ve always done, you’ll always get what you’ve always got.” Recognizing the truth in that statement, our profession is challenged to turn to advances in technology to change what we do and how we do it. The future

of financial statement preparation must focus on efficiency and shifting the use of resources from the compilation efforts to new methods of communicating information throughout organizations. The value of the new methods of communication comes from facilitating better decision making. Let’s think about the idea of having the ability to make decisions based on quality realtime data. Financial reporting generally has been based on a historic descriptive perspective, typically reported prior period, prior quarter or prior year. This has been necessitated by the resources needed to ensure quality data is reported. As our systems have become more robust, we have recognized the competitive advantages that are gained from the improved timing of information. As related to internal reporting, timely insight leads to better decision-making. For external reporting, the focus is driven by creating efficiency both in the speed of preparation and in minimizing cost and resource commitments. All reporting efforts demands significant attention to maintaining accuracy and controls. In the report, Finance 2020, Death by Digital, David Accent stated that “finance is evolving from an expense control, spreadsheet driven accounting and reporting center into a predictive analytics powerhouse function that creates business value.” A Deloitte publication “Reporting in a Digital World” states that the laborious grind of management and financial reporting today likely won’t exist in the near future. People will be insight generators and not report builders. Deloitte also states that “in the future financial reporting will be intelligent, financial reporting will be interactive and financial reporting will be realtime.” We are beginning to see the implications of continuous automation improvements in

our ledger systems. These functionalities help simplify and streamline data management and allow automation of data analytics on transaction data used in reporting. Software does the analytical work, and the report preparation happens automatically as transactions occur. This allows more time to focus on communicating what’s hidden in the data. In addition, these technologies will essentially eliminate the need for excessive reconciliation. In the near future, entire organizations will provide a single cloud-based source of data for all business functions. They will be able to operate from the same reliable data set. True real-time reporting will arrive when all aspects of the reporting process become automated and streamlined. The biggest barriers to real-time reporting today are establishing data quality and addressing latency, both of which contribute to the lack of timeliness. In the next article we will take a closer look at several of the key innovations and influences. We will discuss new technology that is being deployed throughout organizations to help use information more efficiently and drive better decisions. Many of these technology innovations are focused on developing automation primarily using algorithms and artificial intelligence. Most accounting teams have yet to put it all together, but several digital drivers are showing early signs of adoption. Among these that we will review are data visualization, chatbots, Big Data and artificial intelligence, robotics process automation or RPA, and predictive analytics. In the final article for 2020, we will look in some detail at the current application of distributed ledger technology or blockchain, the maturity of financial technology or fintech, and the implication for enterprise risk management particularly cybersecurity. I hope you will find this information informative and that it will encourage you to develop a “think digital first” mindset. March/April

Responding to COVID-19 with Remote Access?

PAY ATTENTION TO SECURITY! Thomas G. Stephens, Jr., CPA, CITP, CGMA

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As the world comes to grips with COVID-19, many businesses are responding by encouraging team members to work from home. The rationale behind this action is to reduce the possibility of a contaminated team member encountering other team members, and potentially contaminating them. Unfortunately, not everyone has thoughtfully considered the security ramifications of encouraging team members to work remotely. Consequently, many of these new remote workers may potentially and unknowingly compromise sensitive information. Read this article to learn about five security best practices you need to have in place in these environments. Do Not Connect through Unsecured Wi-Fi It's an unfortunate fact, but many home wi-fi networks remain unsecured. As such, cybercriminals can intercept the data transmitted over these networks easily. Of course, this results in potentially compromising sensitive and privileged information. Therefore, if you work from home and use wi-fi, protect the network at a minimum by requiring a password to establish a connection. Remember, you should never utilize an unsecured wi-fi network, regardless of whether it is in your home, a hotel, or any other venue! To improve security relative to your internet access while working remotely, consider the following options: • Connect to the Internet using wired connections. Not only will they be more secure, but they might also be faster. • If wired connections are not practical, secure your wi-fi connection with a strong password. You may need to reconfigure your wi-fi router to add this password. Consider Utilizing a Virtual Private Network Virtual Private Networks (VPNs) create a secure, encrypted “tunnel” in the otherwise unencrypted Internet. Accordingly, the VPN encrypts all traffic that passes through it, even if the network itself is not encrypted. Stated differently, assuming a secure network connection (as described in the previous paragraph), a VPN adds yet another level of encryption to your data. Your IT staff may already have a VPN option in place for you. However, if they do not, you can take

advantage of one of many good “personal” VPN’s, including Nord VPN, Private Internet Access, Express VPN, and CyberGhost VPN. Either approach helps to reduce your risk of exposing confidential and sensitive information. Be Aware of BYOD Risk If you work from a computer that you provide personally – as opposed to a companyprovided device – are you sure that your device is adequately secured. This risk is known as Bring Your Own Device (BYOD) risk, and it can be quite significant. For devices that your IT staff maintains, they likely implemented necessary security measures already. Examples include ensuring that anti-malware software updates automatically, users do not log-in with Administrative rights on the computer, and unauthorized software cannot run on the computer. But in the traditional home computer environment, often these and other necessary security measures are not in place. Further, because several family members likely use the home computer, you run the risk of compromising data due to someone else's actions or activities on the device. In short, when working from home, try to use devices managed by your IT team. When this occurs, we shift the security issues associated with the computer to professionals who should have adequate training for the task. If, however, you must use your device to work remotely, at a minimum, ensure that your operating system and all your applications have the most recent updates available. Also, verify that anti-malware software is installed on the computer and is updated at least daily. These measures help to reduce BYOD risk when working from home. Watch Out for Leaving Data Behind Following on the previous point, be careful about where you store your data if you are working on your computer. In these situations, it is common for team members to save files on the local hard disk, as opposed to the corporate server or some Cloudbased resources. Then, when the working environment transitions back to a more routine one, and you return to the office to work, you may realize that all the files you have been working on are still on your home computer. To address this issue, consider storing all your data on an external hard disk and then taking

that hard disk with you to the office when normal operations resume. Better yet, if your organization provides access to Cloud-based storage such as OneDrive for Business, store the files there. That way, you can collaborate with either team members in real-time using Microsoft Office applications. Is Your Office Computer Turned On? You can use tools to control your computer in the office remotely. This approach gives you access to all the files on the device and network and to all the applications installed on the computer. However, there is a downside to this approach. The downside is that, with some exceptions, you must leave the computer turned on so that you access it remotely. Of course, while the computer is on and you are not physically present in the office, unauthorized users might choose to run applications and access data from that device. Therefore, you may want to consider asking your IT staff to enable Wake-on-LAN (WoL) on your computer. Without going into a technical discussion, WoL essentially allows you to turn on your computer remotely. With this feature enabled, you won't have to leave it running 24/7, and, in turn, you reduce your security risk. Summary The global pandemic caused by COVID-19 has clearly put us in uncharted territory, on many fronts. Yet business needs to continue with as little disruption as possible. One way that can happen is to work from remote locations to reduce the risk of contracting or contaminating team members. For those who work remotely on a routine basis, hopefully, the five items discussed above have already been addressed. However, for those who are suddenly working in this environment, be sure to address the issues outlined in this article to reduce the risk of compromising confidential and sensitive data. Let’s not make a challenging situation any worse because of a data breach. Tommy is one of the shareholders in K2 Enterprises, affiliating with the Firm in 2003 and joining as a shareholder in 2007. At K2, Tommy focuses on creating and delivering content and is responsible for many of the Firm's management and marketing functions. You may reach him at tommy@k2e.com, and you may learn more about K2 Enterprises at www.k2e.com.

March/April

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Lori$310,000 Newcomer, CPA & Tim Price, CPA • Northeast TN / North of Knoxville CPA PNGroup@aps.net www.APS.net grossing $315,000

YOUR PRACTICE WANTED

Thinking about selling your practice? Accounting Practice Sales delivers results, bringing you the best price, optimal terms and a buyer who represents an ideal fit for your clientele. Contact us today for a confidential discussion. Our current listings include: • Near Huntsville / Decatur / Athens accounting & tax practice grossing $630,000 • Fort Walton Beach, FL area CPA grossing $75,000

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ASCPA Connections

For more information on these listings or to sell your practice, contact Lori Newcomer, CPA and Tim Price, CPA at (888) 553-1040 or PNgroup@APS.net, or visit www.APS.net.

RARE OPPORTUNITY!

Small, well-established CPA firm in Panama City Beach, FL for sale by retirement-minded sole practitioner. Audit, tax and bookkeeping. Reply to P. O. Box 19604 Panama City Beach, FL 32417.

SELLING YOUR FIRM IS COMPLEX. LET US MAKE IT SIMPLE.

Selling your firm is complex. Let us make it simple.

Accounting Biz Brokers has been selling CPA firms for over 15 years and we know your market. We have a large database of buyers ready to purchase. Our “Six Steps to Success” process for selling your firm includes a personalized, confidential approach to bring you the win-win deal you are seeking.

Our brokers are Certified Business Intermediaries (CBI) specializing in the sale of CPA firms. We are here to help you navigate through the entire sales process – from marketing to negotiating, to closing and successfully transitioning the firm. Contact us TODAY to receive a free market analysis.

LISTINGS: Chattanooga, TN Area Gross $635k; Huntsville Gross $200k-SOLD; NE MS Tax & Bookkeeping Firm Gross $850k-SOLD.

Kathy Brents, CPA, CBI Cell 501.514.4928 Office 866.260.2793 Kathy@AccountingBizBrokers.com visit us at www.AccountingBizBrokers.com

3/26/2020 5:21:35 PM

GENERAL CPE SCHEDULE LS001 ASCPA’s Employee Benefits Workshop Friday, May 15, 2020 8:00am-3:30pm Webcast | Accounting: 8

Compliance and Planning Monday, June 22, 2020 12:30pm-4:00pm Gulf Shores | Taxes: 4

022 Top 10 Technology Risks and Trends Every CPA Should Know Wednesday, June 24, 2020 8:00am-11:30am Gulf Shores | Auditing: 2 | Information Technology: 2 | Total: 4

002 Accounting and Auditing for Tax People Who Absolutely Detest Accounting and Auditing Wednesday, May 27, 2020 8:00am-11:30am Birmingham | Accounting: 4

013 The Changing Role of the Controller: Advancing from Tactical to Strategic Monday, June 22, 2020 12:30pm-4:00pm Gulf Shores | Business Management and Organization: 4

003 2020 Preparation, Compilation & Review (SSARS) Update for the Local Firm Wednesday, May 27, 2020 12:30pm-4:00pm Birmingham | Accounting: 4

014 Preparation, Compilation, and Review Engagements: Update and Review Tuesday, June 23, 2020 8:00am-11:30am Gulf Shores | Auditing: 4

004 Real World Ethics Update for CPAs in Industry Thursday, May 28, 2020 8:00am-9:40am Birmingham | Ethics: 2

015 Section 199A: Schedule K-1 Reporting for Relevant Passthrough Entities Tuesday, June 23, 2020 8:00am-11:30am Gulf Shores | Taxes: 4

025 Project Management for Small and Medium-Sized Enterprises Wednesday, June 24, 2020 12:30pm-4:00pm Gulf Shores | Management Services: 4

016 Critical Issues That CPAs in Industry Will Need to Face This Year Tuesday, June 23, 2020 8:00am-11:30am Gulf Shores | Accounting: 2 | Taxes: 2 | Total: 8

028 K2’s Excel Financial Reporting and Analysis Tuesday, August 18, 2020 8:00am-3:30pm Huntsville | Accounting: 8

005 Real World Ethics Update for CPASs in Public Practice Thursday, May 28, 2020 10:00am-11:40am Birmingham | Ethics: 2 006 Conquering the New Leasing Standard Thursday, May 28, 2020 12:30pm-4:00pm Birmingham | Accounting: 4 007 Staff Tax Training Level III Thursday, June 18, 2020 8:00am-3:30pm Montgomery | Taxes: 16 008 Accounting and Auditing Update Monday, June 22, 2020 8:00am-11:30am Gulf Shores | Accounting: 4 009 Surgent’s Individual Income Tax Update Monday, June 22, 2020 8:00am-11:30am Gulf Shores | Taxes: 4 010 Controller’s Update: Today’s Latest Trends Monday, June 22, 2020 8:00am-11:30am Gulf Shores | Finance: 4 011 Ethics and Professional Conduct: Updates and Practical Applications Monday, June 22, 2020 12:30pm-4:00pm Gulf Shores | Behavioral Ethics: 4 012 Required Minimum Distributions:

017 The Bottom Line on the New Lease Accounting Requirements Tuesday, June 23, 2020 12:30pm-4:00pm Gulf Shores | Accounting: 4 018 Maximizing Your Social Security Benefits Tuesday, June 23, 2020 12:30pm-4:00pm Gulf Shores | Taxes: 4 019 Enterprise Risk Management Concepts and Strategy for Small and Medium-Sized Companies Tuesday, June 23, 2020 12:30pm-4:00pm Gulf Shores | Management Services: 4 020 Evaluating Fraud Risk in a Financial Statement Audit Wednesday, June 24, 2020 8:00am-11:30am Gulf Shores | Auditing: 4 021 Succession Planning for the Small Business Owner: Finding the Exit Ramp Wednesday, June 24, 2020 8:00am-11:30am Gulf Shores | Taxes: 4

023 Financial Statement Disclosures: A Guide for Small and Medium-Sized Businesses Wednesday, June 24, 2020 12:30pm-4:00pm Gulf Shores | Accounting: 4 024 This Year’s Top Tax and FinancialPlanning Ideas Wednesday, June 24, 2020 12:30pm-4:00pm Gulf Shores | Taxes: 4

029 Accounting and Auditing Update for Small Businesses Tuesday, August 18, 2020 8:00am-3:30pm Huntsville | Accounting: 8 030 Advanced Controller and CFO Skills Tuesday, August 18, 2020 8:00am-3:30pm Montgomery | Finance: 8 LS030 Advanced Controller and CFO Skills Tuesday, August 18, 2020 8:00am-3:30pm Webcast | Finance: 8 031 Best Practices for Payroll Taxes and 1099 Issues Wednesday, August 19, 2020 8:00am-3:30pm Birmingham | Taxes: 8 032 The Best Federal Tax Update Course by Surgent Wednesday, August 19, 2020 8:00am-3:30pm Huntsville | Taxes: 8 033 Governmental Accounting and Auditing Update Wednesday, August 19, 2020 8:00am-3:30pm

Huntsville | Accounting - GO: 8 034 Construction Contractors Advanced Issues Wednesday, August 19, 2020 8:00am-3:30pm Montgomery | Auditing: 8 035 Intermediate Individual Taxation Wednesday, August 19, 2020 8:00am-3:30pm Montgomery | Taxes: 8 036 K2’s Advanced Excel Data Magic Wednesday, August 19, 2020 8:00am-3:30pm Birmingham | Accounting: 8 037 The Eight Hour MBA Wednesday, August 19, 2020 8:00am-3:30pm Birmingham | Business Management and Organization: 8 LS034 Construction Contractors Advanced Issues Wednesday, August 19, 2020 8:00am-3:30pm Webcast | Auditing: 8 038 Annual Tax Update: Corporations and Pass-Through Entities Thursday, August 20, 2020 8:00am-3:30pm Birmingham | Taxes: 8 039 The Best S Corporation, Limited Liability, and Partnership Update Course by Surgent Thursday, August 20, 2020 8:00am-3:30pm Huntsville | Taxes: 8 040 Focus on Engagement Quality: How to Avoid Deficiencies in Peer Reviews Thursday, August 20, 2020 8:00am-3:30pm Huntsville | Auditing: 8 041 Surgent’s Individual and Financial-Planning Tax Camp Thursday, August 20, 2020 8:00am-3:30pm Montgomery | Taxes: 8 043 The Value-Added Controller Thursday, August 20, 2020 8:00am-3:30pm Birmingham | Business Management and Organization: 8 044 Governmental Accounting and Auditing Update Thursday, August 20, 2020 8:00am-11:30am Birmingham | Accounting - GO: 8

GO TO WWW.ASCPA.ORG FOR NEW CLASSES AND MOST CURRENT INFORMATION.

March/April

045 Intermediate Individual Taxation Friday, August 21, 2020 8:00am-3:30pm Birmingham | Taxes: 8 046 Assessing the Risk of Fraud in a Financial Statement Audit Friday, August 21, 2020 8:00am-3:30pm Huntsville | Auditing: 8 047 Fiduciary Accounting and Tax Issues of Estates and Trusts Friday, August 21, 2020 8:00am-3:30pm Huntsville | Accounting: 4 | Taxes: 4 | Total: 8 048 Not-for-Profit Accounting and Auditing Update Friday, August 21, 2020 8:00am-3:30pm Birmingham | Accounting - GO: 8 050 Reviewing Partnership Tax Returns: What Are You Missing? Friday, August 21, 2020 8:00am-11:30am Montgomery | Taxes: 4 051 Sirote’s Hottest Tax Topics Friday, August 21, 2020 12:30pm-4:00pm Montgomery | Taxes: 4 LS051 Sirote’s Hottest Tax Topics Friday, August 21, 2020 12:30pm-4:00pm Webcast | Taxes: 4 052 ASCPA’s Fraud Update Monday, August 24, 2020 8:00am-3:30pm Birmingham | Accounting: 8 053 K2’s Case Studies in Fraud and Technology Controls Monday, August 24, 2020 8:00am-3:30pm Mobile | Auditing: 8 054 The Best S Corporation, Limited Liability, and Partnership Update Course by Surgent Monday, August 24, 2020 8:00am-3:30pm Mobile | Taxes: 8 055 Enterprise Risk Management for Small and Medium-Sized Companies Monday, August 24, 2020 8:00am-3:30pm Birmingham | Management Services: 8 056 Surgent’s Federal Tax Camp Monday, August 24, 2020 8:00am-3:30pm Birmingham | Taxes: 8

057 Accounting and Auditing Update for Small Businesses Tuesday, August 25, 2020 8:00am-3:30pm Birmingham | Accounting: 8 058 2020 Accounting & Auditing Update for the Real World Tuesday, August 25, 2020 8:00am-3:30pm Mobile | Accounting: 8 059 Surgent’s Federal Tax Camp Tuesday, August 25, 2020 8:00am-3:30pm Mobile | Taxes: 8 060 K2’s Advanced Excel Tuesday, August 25, 2020 8:00am-3:30pm Montgomery | Computer Software & Applications: 4 | Accounting: 4 | Total: 8 061 Enterprise Risk Management for Small and Medium-Sized Companies Tuesday, August 25, 2020 8:00am-3:30pm Montgomery | Management Services: 8

Wednesday, August 26, 2020 8:00am-3:30pm Mobile | Auditing: 8 067 Securing a Comfortable Retirement in the Age of Spending Wednesday, August 26, 2020 8:00am-3:30pm Mobile | Taxes: 8 068 K2’s Budgeting and Forecasting Tools and Techniques Wednesday, August 26, 2020 8:00am-3:30pm Montgomery | Computer Software & Applications: 4 | Accounting: 4 | Total: 8 069 Fraud in Not-for-profit Entities and Governments: Stealing From Everyone Wednesday, August 26, 2020 8:00am-3:30pm Montgomery |Auditing - GO: 8 070 Social Security and Medicare: Planning for You and Your Clients Wednesday, August 26, 2020 8:00am-3:30pm Birmingham | Taxes: 8

062 Project Management for Finance Professionals Tuesday, August 25, 2020 8:00am-3:30pm Birmingham | Management Services: 8

049 Using Internal Control to Strengthen Security, Efficiency, and Employee Conduct Thursday, August 27, 2020 8:00am-3:30pm Birmingham | Accounting: 8

063 The Year’s Best Income Tax, Estate Tax, and Financial-Planning Ideas Tuesday, August 25, 2020 8:00am-3:30pm Birmingham | Taxes: 8

072 Accounting and Auditing Update Thursday, August 27, 2020 8:00am-11:30am Dothan | Accounting: 4

LS061 Enterprise Risk Management for Small and Medium-Sized Companies Tuesday, August 25, 2020 8:00am-3:30pm Webcast | Management Services: 8 064 Analytics and Big Data for Accountants Wednesday, August 26, 2020 8:00am-3:30pm Birmingham | Finance: 8 065 Annual Update and Practice Issues for Preparation, Compilation, and Review Engagements Wednesday, August 26, 2020 8:00am-3:30pm Birmingham | Auditing: 8 066 2020 Preparation, Compilation & Review (SSARS) Update for the Local Firm

073 Preparation, Compilation, and Review Engagements: Update and Review Thursday, August 27, 2020 12:30pm-4:00pm Dothan | Auditing: 4 074 Surgent’s Federal Tax Update Thursday, August 27, 2020 8:00am-11:30am Dothan | Taxes: 4 075 Maximizing Your Social Security Benefits Thursday, August 27, 2020 12:30pm-4:00pm Dothan | Taxes: 4 076 Assessing the Risk of Fraud in a Financial Statement Audit Thursday, August 27, 2020 8:00am-3:30pm Montgomery | Auditing: 8 077 Advanced Audits of 401(k) Plans: Best Practices and Current

Developments Thursday, August 27, 2020 8:00am-3:30pm Birmingham | Auditing: 8 042 Internal and External Fraud: Understanding it and Working to Control it Friday, August 28, 2020 8:00am-3:30pm Montgomery | Accounting: 8 078 The Bottom Line on the New Lease Accounting Requirements Friday, August 28, 2020 8:00am-11:30am Dothan | Accounting: 4 079 Surgent’s Individual Tax Planning Ideas Friday, August 28, 2020 8:00am-11:30am Dothan | Taxes: 4 080 Ethics and Professional Conduct: Updates and Practical Applications Friday, August 28, 2020 12:30pm-4:00pm Dothan |Behavioral Ethics: 4 081 The Top Five Tax Issues in Dealing with LLCs and Partnerships Friday, August 28, 2020 12:30pm-4:00pm Dothan | Taxes: 4 082 2020 Accounting & Auditing Update for the Real World Friday, August 28, 2020 8:00am-3:30pm Montgomery | Accounting: 8 LS042 Internal and External Fraud: Understanding it and Working to Control it Friday, August 28, 2020 8:00am-3:30pm Webcast | Accounting: 8 LS082 2020 Accounting & Auditing Update for the Real World Friday, August 28, 2020 8:00am-3:30pm Webcast | Accounting: 8 027 Peer Review Update Course Friday, September 18, 2020 8:00am-11:30am Montgomery | Auditing: 4 LS027 Peer Review Update Course Friday, September 18, 2020 8:00am-11:30 AM Webcast | Auditing: 4 083 ASCPA’s Community Banking Update Monday, September 21, 2020 8:00am-3:30pm

GO TO WWW.ASCPA.ORG FOR NEW CLASSES AND MOST CURRENT INFORMATION. 28

ASCPA Connections

Birmingham | Accounting: 8

Management and Organization: 4

Huntsville | Auditing: 4

084 2020 Accounting & Auditing Update for the Real World Monday, September 21, 2020 8:00am-11:30 AM Auburn | Accounting: 4

095 Common Pitfalls of Implementing the New Revenue Recognition Standard Tuesday, September 22, 2020 8:00am-11:30 AM Auburn | Accounting: 4

106 Reviewing Partnership Tax Returns: What Are You Missing? Tuesday, September 22, 2020 12:30pm-4:00pm Huntsville | Taxes: 4

085 S Corporation Taxation: Advanced Issues Monday, September 21, 2020 8:00am-11:30 AM Auburn | Taxes: 4 086 2020 Preparation, Compilation & Review (SSARS) Update for the Local Firm Monday, September 21, 2020 12:30pm-4:00pm Auburn | Auditing: 4 087 Section 199A: Schedule K-1 Reporting for Relevant Passthrough Entities Monday, September 21, 2020 12:30pm-4:00pm Auburn | Taxes: 4 088 Controller’s Update: Today’s Latest Trends Monday, September 21, 2020 8:00am-11:30am Huntsville | Finance: 4 089 Surgent’s Individual Income Tax Update Monday, September 21, 2020 8:00am-11:30am Huntsville | Taxes: 4 090 Risk, Cost, and Cash Management for Controllers and Financial Managers Monday, September 21, 2020 12:30pm-4:00pm Huntsville | Management Services: 4 091 IRS Tax Examinations and Hot Issues Monday, September 21, 2020 12:30pm-4:00pm Huntsville | Taxes: 4 092 The Best Estate and Financial Planning Topics of 2020 Monday, September 21, 2020 8:00am-3:30pm Birmingham | Taxes: 8 093 Reviewing Individual Tax Returns: What Are You Missing? Tuesday, September 22, 2020 8:00am-11:30am Birmingham | Taxes: 4 094 Developing Your Digital Mindset Tuesday, September 22, 2020 8:00am-11:30am Birmingham | Business

096 Surgent’s Individual Tax Planning Ideas Tuesday, September 22, 2020 8:00am-11:30 AM Auburn | Taxes: 4 097 Ethics and Professional Conduct: Updates and Practical Applications Tuesday, September 22, 2020 8:00am-11:30am Huntsville | Behavioral Ethics: 4

107 Examining the New Lease Accounting Standard: More Than Meets the Eye Tuesday, September 22, 2020 12:30pm-4:00pm Birmingham | Accounting: 4 LS100 Federal Tax Update Tuesday, September 22, 2020 8:00am-3:30pm Webcast | Taxes: 8

098 Reviewing Individual Tax Returns: What Are You Missing? Tuesday, September 22, 2020 8:00am-11:30am Huntsville | Taxes: 4

108 K2’s Best Word, Outlook, and PowerPoint Features Wednesday, September 23, 2020 8:00am-11:30am Birmingham | Computer Software & Applications: 4

099 Topic 606: Tackling the Year Two Post-Implementation Issues Tuesday, September 22, 2020 8:00am-11:30am Birmingham | Accounting: 4

109 Audit Workpapers: Documenting Field Work Wednesday, September 23, 2020 8:00am-11:30am Huntsville | Auditing: 4

100 Federal Tax Update Tuesday, September 22, 2020 8:00am-3:30pm Montgomery | Taxes: 8 |

110 The Top Five Tax Issues in Dealing with LLCs and Partnerships Wednesday, September 23, 2020 8:00am-11:30am Huntsville | Taxes: 4

101 Reviewing Partnership Tax Returns: What Are You Missing? Tuesday, September 22, 2020 12:30pm-4:00pm Birmingham | Taxes: 4 102 Change the Way You Work: Success as a Virtual CFO Tuesday, September 22, 2020 12:30pm-4:00pm Birmingham | Business Management and Organization: 4

111 Financial Reporting for Not-forProfit Entities Wednesday, September 23, 2020 8:00am-11:30am Montgomery | Accounting - GO: 4 112 Applying the New Yellow Book to a Financial Statement Audit Wednesday, September 23, 2020 8:00am-11:30am Birmingham | Auditing - GO: 4

103 Conquering the New Leasing Standard Tuesday, September 22, 2020 12:30pm-4:00pm Auburn | Accounting: 4

113 Required Minimum Distributions: Compliance and Planning Wednesday, September 23, 2020 8:00am-11:30am Birmingham | Taxes: 4

104 Critical Issues That Tax Public Accountants Will Need to Face This Year Tuesday, September 22, 2020 12:30pm-4:00pm Auburn | Taxes: 4

114 Real World Ethics Update for CPAs in Industry Wednesday, September 23, 2020 8:00am-9:40am Montgomery | Ethics: 2

105 Fraud and Cash Receipts: Common Frauds and Internal Controls Tuesday, September 22, 2020 12:30pm-4:00pm

115 Real World Ethics Update for CPASs in Public Practice Wednesday, September 23, 2020 10:00am-11:40am Montgomery | Ethics: 2

116 K2’s Excel Charting and Visualizations Wednesday, September 23, 2020 12:30pm-4:00pm Birmingham | Computer Software & Applications: 4 117 Applying Professional Skepticism in an Audit Wednesday, September 23, 2020 12:30pm-4:00pm Huntsville | Auditing: 4 118 Section 199A: Schedule K-1 Reporting for Relevant Passthrough Entities Wednesday, September 23, 2020 12:30pm-4:00pm Huntsville | Taxes: 4 119 2020 Preparation, Compilation & Review (SSARS) Update for the Local Firm Wednesday, September 23, 2020 12:30pm-4:00pm Montgomery | Auditing: 4 120 Yellow Book in 4 Hours - Complying with the Latest Requirements Wednesday, September 23, 2020 12:30pm-4:00pm Montgomery |Auditing - GO: 4 121 The Most Critical Challenges in Not-for-Profit Accounting Today Wednesday, September 23, 2020 12:30pm-4:00pm Birmingham | Accounting - GO: 4 122 Advanced Trust Issues: A Roadmap for Success in an Increasingly Complex Area Wednesday, September 23, 2020 12:30pm-4:00pm Birmingham | Taxes: 4 LS114 Real World Ethics Update for CPAs in Industry Wednesday, September 23, 2020 8:00am-9:40 AM Webcast | Ethics: 2 LS115 Real World Ethics Update for CPASs in Public Practice Wednesday, September 23, 2020 10:00am-11:40 AM Webcast | Ethics: 2 LS120 Yellow Book in 4 Hours - Complying with the Latest Requirements Wednesday, September 23, 2020 12:30pm-4:00pm Webcast | Auditing - GO: 4 123 K2’s Remote Access for Small Businesses

GO TO WWW.ASCPA.ORG FOR NEW CLASSES AND MOST CURRENT INFORMATION.

March/April

Thursday, September 24, 2020 8:00am-11:30am Birmingham |Information Technology: 4 124 Accounting and Auditing for Tax People Who Absolutely Detest Accounting and Auditing Thursday, September 24, 2020 8:00am-11:30am Huntsville | Accounting: 4 125 Real Estate Taxation: Critical Considerations Thursday, September 24, 2020 8:00am-11:30am Huntsville | Taxes: 4 126 Auditing Deficiencies in Peer Reviews: Focus on Engagement Quality Thursday, September 24, 2020 8:00am-11:30am Birmingham | Auditing: 4 127 Succession Planning for the Small Business Owner: Finding the Exit Ramp Thursday, September 24, 2020 8:00am-11:30am Birmingham | Taxes: 4 128 Governmental Accounting and Auditing Update Thursday, September 24, 2020 8:00am-3:30pm Montgomery | Accounting - GO: 8 129 ASCPA’s Forensic Workshop Thursday, September 24, 2020 8:00am-3:30pm Montgomery | Accounting: 8 130 K2’s Implementing Internal Controls in QuickBooks Environments Thursday, September 24, 2020 12:30pm-4:00pm Birmingham | Auditing: 4 131 2020 Preparation, Compilation & Review (SSARS) Update for the Local Firm Thursday, September 24, 2020 12:30pm-4:00pm Huntsville | Auditing: 4 132 Critical Issues Involving Taxation of Construction Contractors Thursday, September 24, 2020 12:30pm-4:00pm Huntsville | Taxes: 4 133 Top 10 Technology Risks and Trends Every CPA Should Know Thursday, September 24, 2020 12:30pm-4:00pm Birmingham | Auditing: 2 | Information Technology: 2 | Total: 4

134 Four Tiers of Loss Limitations: A Guide to the New Rules for PassThrough Entities Thursday, September 24, 2020 12:30pm-4:00pm Birmingham | Taxes: 4

143 Auditing Deficiencies in Peer Reviews: Focus on Engagement Quality Monday, September 28, 2020 12:30pm-4:00pm Montgomery | Auditing: 4

152 Section 199A: Schedule K-1 Reporting for Relevant Passthrough Entities Tuesday, September 29, 2020 12:30pm-4:00pm Mobile | Taxes: 4

LS128 Governmental Accounting and Auditing Update Thursday, September 24, 2020 8:00am-3:30pm Webcast | Accounting - GO: 8

144 Select Estate and Life Planning Issues for the Middle-Income Client Monday, September 28, 2020 12:30pm-4:00pm Montgomery | Taxes: 4

153 Annual FASB Update and Review Tuesday, September 29, 2020 12:30pm-4:00pm Montgomery | Accounting: 4

135 2020 Accounting & Auditing Update for the Real World Monday, September 28, 2020 8:00am-11:30 AM Tuscaloosa | Accounting: 4

LS139 Section 199A: Schedule K-1 Reporting for Relevant Passthrough Entities Monday, September 28, 2020 8:00am-11:30 AM Webcast | Taxes: 4

136 Recent Frauds Occurring in Notfor-Profit Entities and Governments Monday, September 28, 2020 8:00am-11:30am Mobile | Auditing - GO: 4 137 Key Partnership and S Corporation Tax Planning Strategies Monday, September 28, 2020 8:00am-11:30am Mobile | Taxes: 4 138 Evaluating Fraud Risk in a Financial Statement Audit Monday, September 28, 2020 8:00am-11:30am Montgomery | Auditing: 4 139 Section 199A: Schedule K-1 Reporting for Relevant Passthrough Entities Monday, September 28, 2020 8:00am-11:30am Montgomery | Taxes: 4 140 2020 Preparation, Compilation & Review (SSARS) Update for the Local Firm Monday, September 28, 2020 12:30pm-4:00pm Tuscaloosa| Auditing: 4 141 Applying the New Yellow Book to a Financial Statement Audit Monday, September 28, 2020 12:30pm-4:00pm Mobile | Auditing - GO: 4 142 Four Tiers of Loss Limitations: A Guide to the New Rules for PassThrough Entities Monday, September 28, 2020 12:30pm-4:00pm Mobile | Taxes: 4

LS144 Select Estate and Life Planning Issues for the Middle-Income Client Monday, September 28, 2020 12:30pm-4:00pm Webcast | Taxes: 4 145 Common Pitfalls of Implementing the New Revenue Recognition Standard Tuesday, September 29, 2020 8:00am-11:30 AM Tuscaloosa | Accounting: 4 146 The Most Critical Challenges in Not-for-Profit Accounting Today Tuesday, September 29, 2020 8:00am-11:30am Mobile | Accounting - GO: 4 147 IRS Tax Examinations and Hot Issues Tuesday, September 29, 2020 8:00am-11:30am Mobile | Taxes: 4 148 Update on Recent AICPA Standard Setting: Staying Current in a Changing Environment Tuesday, September 29, 2020 8:00am-11:30am Montgomery | Auditing: 4 149 Maximizing Your Social Security Benefits Tuesday, September 29, 2020 8:00am-11:30am Montgomery | Taxes: 4 150 Conquering the New Leasing Standard Tuesday, September 29, 2020 12:30pm-4:00pm Auburn | Accounting: 4 151 Ethical Considerations for CPAs Tuesday, September 29, 2020 12:30pm-4:00pm Mobile | Behavioral Ethics: 4

154 Key Partnership and S Corporation Tax Planning Strategies Tuesday, September 29, 2020 12:30pm-4:00pm Montgomery | Taxes: 4 LS148 Update on Recent AICPA Standard Setting: Staying Current in a Changing Environment Tuesday, September 29, 2020 8:00am-11:30 AM Webcast | Auditing: 4 LS153 Annual FASB Update and Review Tuesday, September 29, 2020 12:30pm-4:00pm Webcast | Accounting: 4 155 Succession Planning for the Small Business Owner: Finding the Exit Ramp Wednesday, September 30, 2020 8:00am-11:30am Mobile | Taxes: 4 156 Cybersecurity Update Wednesday, September 30, 2020 8:00am-11:30am Mobile |Information Technology: 4 157 Required Minimum Distributions: Compliance and Planning Wednesday, September 30, 2020 12:30pm-4:00pm Mobile | Taxes: 4 158 ABCs of Blockchain – Beyond the Hype; the Basics of What Business Needs toKnow Wednesday, September 30, 2020 12:30pm-4:00pm Mobile |Information Technology: 2 161 The Best Federal Tax Update Course by Surgent Thursday, January 07, 2021 8:00am-3:30pm Birmingham | Taxes: 8 026 Becoming an AICPA Peer Review Team or Review Captain: Case Study Application TBD 8:00am-3:30pm Montgomery | Auditing: 8

GO TO WWW.ASCPA.ORG FOR NEW CLASSES AND MOST CURRENT INFORMATION. 30

ASCPA Connections

Take a deep breath. We are here for you. Our mission is to enhance your profession through advocacy, education, and member engagement.

Let one of us know how we can help you. Visit www.ascpa.org/staff to reach one of us today.

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

Experiencing

March Madness? Make This Your FINAL SEASON!

Lori Newcomer, CPA & Tim Price, CPA

(888) 553-1040

PNgroup@APS.net www.APS.net

Delivering Results -One Practice At a time