ASCPA Connections - Nov/Dec 2022

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By Tom Zoebelein

Happy Fall everyone. I hope that you are enjoying the nice weather, sports, art festivals, and all the wonderful events that happen this time of year. ASCPA recently held two fantastic annual events, Emerging Leaders, and Charity Cornhole. Thank you, thank you for your support. Also on the fall calendar was AICPA’s Fall Council Meeting. AICPA Council is the governing body of the profession. ASCPA leaders and representatives from all other states and jurisdictions attended Fall Council and it was a tremendous learning opportunity. Here are a few highlights:

Reinventing for tomorrow – Could you have predicted the past three years? The answer is no. In the process of working through the past three years, coupled with an incredible fast-paced digital world, technological transformation has become more important and more relevant to your organization and to your talent. The reality is that technology touches everything we do. I hope that you will pay attention to a couple of areas. First, Client Accounting Services (CAS) is the number one growth area for firms. 84% of the top 100 firms are experiencing increased CAS demand. Clients want to grow their business. They do not want to focus on accounting, statistics, and data analytics, which proves a great need for client advisory services. Next, Dynamic Audit Solutions (DAS), a technological effort developed by 34 of the top 100 CPA firms, AICPA and CaseWare, is a cloud-based, integrated tool driven by audit methodology. It assesses risk at any level of an engagement. Version

2 will be tested during busy season 2023 with the goal to make version 3 available during the Summer of 2023. The tool is not a big firm tool, rather, DAS will be sized for all firms and all engagements.

Balancing the licensure journey and advancing human capital - There are many stakeholders working together to develop tools and resources that all can use to help pipeline efforts. AICPA and Center for Audit Quality, State Societies, Academia, NASBA and State Boards, and Firms have all been a part of this effort. Discussion areas of firm culture, STEM legislation, high school outreach, CPA exam and education, and CPA Evolution are some of the areas these stakeholders are working on. One obvious effort: how do we reach an audience that thinks accounting is boring? We tell the truth. Everyone involved in pipeline efforts must do a better job of articulating what accountants do and what skill sets are needed. Your personal story must also be shared. A story of why a career in accounting has allowed you to grow as a leader, has offered flexibility, and more importantly, how you, as a trusted adviser, have advised clients and businesses helping them to thrive, grow, expand, and strategically achieve financial goals.

Human capital and organizational culture are critical components of the future. We encourage you to get involved with any of the pipeline initiatives the ASCPA has underway. We also encourage you to think about your business structure and how you might adapt to attract and retain talent. Let’s begin to use (new) resources and communication stories to tell the positive story of our profession. Accounting is a career that helps business and economies thrive while offering technology tools that are second nature to younger talent.

One pipeline program that I would like to introduce to you to is the KPMG, Master of Accounting with Data Analytics (MADA) degree. Alabama State University (ASU) has embarked on an exciting learning opportunity for Master of Accountancy students. Unique to ASU in Alabama, the KPMG MADA coursework goes beyond traditional accounting principles to include use of technologies and methodologies used in today’s overly complex, data-centric accounting environment. ASU has integrated the MADA

program into its Master of Accounting degree for at least 30 hours of credit. The coursework includes subjects such as: Data Analytics and Visualization, Systems for Data Analytics, Auditing through Information Systems, Auditing with Automated Audit Procedures, Data Mining and more.

If a student is selected as a participant, see page 5, the student will be called a KPMG scholar, will work with the latest tools and technologies in the KPMG MADA cloud environment, all tuition and book costs will be covered, Becker CPA Exam study materials, a $500 monthly stipend, and a laptop will be provided. Applications are now open. Interested students should contact Dr. Kamal Hingorani, Dean, at khingorani@alasu.edu. I encourage everyone to share this incredible opportunity with future CPAs, interns, and students of whom you are connected.

2022 Education and Looking Forward - The ASCPA team would like to thank everyone who supported our education programs this CPE season. Honestly, it was a tough one for us due to complex changes in our database and delivery tools for educational courses. I do hope that you are now familiar and comfortable with the new database. The user interface is easy-to-use and, as it relates to CPE, members have constant access to CPE certificates and annual compliance reporting. Speaking of, we are most appreciative of Boyd Busby and the Alabama State Board of Public Accountancy (ASBPA) team for working with us to create a CSV file that you can quite literally cut and paste into the ASBPA CPE compliance report due with your annual registration. We are already planning a new education year, 2023, and hope you will look at all the innovative programs being offered.

As always, if you have an interest in becoming involved with the ASCPA, committee or task force efforts, please feel free to connect with me at jbirmingham@alabama.cpa. The entire ASCPA team thanks you for your continued support of our valued programs and services.

As we move out the crunch of the extension busy season and into the preparation phase of the 2022 filing and 2023 busy season, I’m reminded that practice management never ends. Managing our practice to improve our client and human capital experiences are always ongoing.

As a former college athlete, I’m reminded that practice makes perfect – actually, my dad always reminded me that “perfect” practice makes perfect. Last year’s chair, James Moody, asked why we call it practicing our profession. One definition of practice is to “perform (an activity) or exercise (a skill) repeatedly or regularly in order to improve or maintain one’s proficiency.” Isn’t that exactly what we do each day? Whether you annually prepare 20 returns or thousands, perform two audits or 20, you close-out the books one or 12 times, or you teach 30 students or 300, you’re “practicing”. If you are like me, then an honest assessment probably indicates room for improvement exists – for me, a lot of room!

One of my favorite quotes from a college coach is, “either we get better or worse every day – there is no staying the same.” He shared that even if we felt like taking the day off while thinking that we are “staying the same”, then we lost that 24 hours of opportunity to get better. So, he asked us to practice hard every day to take advantage of the one resource that only comes around once – time!

And much like practicing for sports, band, writing, dance, theatre, etc., the key is repetition. Doing things repeatedly with an eye towards progressing our proficiency is paramount. Our profession’s practice is the same. We’re taking stock of the processes that we follow and determining the best ways to advance them. We’re identifying

and implementing new software and tools to help us to improve all of the aspects of managing our practices. We are hiring new talent and developing our teams.

In this Practice Management issue, many different aspects of the profession are on the table: software and technology, policy and process, recruiting, talent management and development, billing and collection, customer or client satisfaction, social media, marketing, claims, service offerings, snacks and social gatherings, etc. The list is long and daunting. This one is probably incomplete, as the “real” list that you are tackling could fill the page. Luckily, we don’t have to be an expert in everything (e.g. accounting standards, auditing standards, tax code, or client accounting software stacks) to make a significant difference for our organizations or firms. We can choose one thing, make it better, and then choose another. We can also take these opportunities to allow others in our organizations to develop or grow. Having a great team around us is such a blessing!

Practice (and practice management) does require an investment of time and effort. If you’re like me, you probably feel like you don’t have time to invest, but I hope that you’ll take this opportunity to improve your practice by devoting time, developing a plan, and pouring into your people, policies, and process to improve. This issue will give you a few shortcuts to help maximize your time. If you don’t find the answer inside the issue, then we hope that you will reach out to the amazing staff at the Alabama Society. They strive to connect, protect, and educate you to enhance the profession (and your opportunities inside it) in Alabama and beyond.

We deeply appreciate the opportunity to serve you; we are thankful for you. We are so very excited about the future of the profession.

As we approach the 2022 holidays and the 2022/2023 busy season, we wish our members and their families a wonderful Christmas and holiday season. May we be reminded of our many blessings and give thanks for them. May we share love, hope, joy, peace, grace, and good tidings to all of those around us.

Within her first semester in the program, Ballinger was offered a full-time position with KPMG.

Raegan Ballinger, KPMG Scholar of Alabama State University, was one of the first students to earn this designation in the university’s history. “We started the program in the Fall and we admitted 4 students as KPMG scholars,” said Dr. Kamal Hingorani. “Raegen is one of the best students in the MAcc program.”

Zoebelein on Tax

• Partnerships- don’t forget to continue to elect out of the audit regime. This is an annual election.

• Advise clients to consider purchasing equipment by year end as bonus is reduced to 80% in 2023.

• In this down market it may be time to harvest losses from your clients’ portfolios. Your clients can buy them back but watch the wash rules.

• Plan for the $500,000 business loss limitation where possible.

• Employee Retention Credit filings - it is not too late.

1. The changes for the 2021 credit can be substantial for your client.

• a $10,000 per employee per qualified quarter,

• 70% of the qualifying wages

• Qualifying by a mere 20% reduction in gross receipts compared to the same quarter of 2019.

election may be especially important for your multi-state clients. Check each state’s rules as these may be a little different.

• Crypto Currencies - make sure you discuss with your client before yearend. Make clients aware that gains are taxable.

• Remember startups with R & D credits can use the credit to offset payroll taxes up to $250,000 ($500,000 after 2022). This is only a one time deal.

The items above are just to get you thinking, but there are other items to consider for your yearend meeting.

To Like Kind Exchange or Not to Like Kind Exchange

I could spend an entire article on this subject, but my space is limited. I just wanted to bring up two examples from this tax season that show why planning is important. I discussed with a client the possibility of doing a like kind exchange (LKE) where the replacement commercial property was to be built during the 180day period. The client did engage a QI and had him handle the sale but did not engage an exchange accommodator title holder “EAT” for the build. This blew the §1031 exchange but it brought up a

real estate for raw land. This resulted in the §1250 recapture being recognized. Though the definition of like kind for real property is broad, going from depreciable property to raw land triggers the depreciation recapture.

A like kind exchange runs the risk of a capital gain rate increase. The present administration had a rate change in their proposed tax changes fortunately it did not pass. On the flip side the §1031 can be a part of estate planning as deferred gain can be permanently avoided upon the death of the owner/member. Provided a basis step-up to FMV at date of death remains in the current tax code.

Consider OPZONES

The investments in opportunity funds, despite being beyond the period to achieve a 15% reduction in the capital gain deferred, still offer benefits to consider. The first is there are three more years of recognition deferral (tax due by 12/31/26).

The second advantage - if held for ten years the gain will not be taxed. This means no depreciation recapture upon the sale. There are funds available that invest in Opzones, providing the holder the advantage of a depreciation deduction during the ten years without the normal

recapture of §1250 & §1245 depreciation (gain but no pain).

Time Out on Unused Tax Credits?

If your client’s tax credit will expire in 2022 or your client died in 2022 before using their tax credit do not panic. IRC §196 comes to the rescue by allowing the restoration of the expense(s) that were reduced for the original tax credit. Though not as good as a tax credit it at least allows the deduction of the expenses in the year of death or the year the credit expires.

Consider Holding off Energy Saving Improvements to 2023

Recent legislation extended the expired Energy Efficient Home Improvement credit for tax years 2023-2032. The credit will be computed on 30% of the expenditure with a yearly maximum credit of $1,200 per year (gone the $500 lifetime limit). Below are the breakdown of how the credit is computed:

• $600 cap on windows

• $250 per door up to $500

Alternative heating and cooling have an annual cap at $2,000 on the following improvements:

• Bio-stoves

• Geothermal units

• Air source heat pumps

A 30% credit up to $150 for home energy audit

Commercial buildings achieving an energy efficiency of 25% (not prior 50%) there will be a $0.50 per square foot deduction up to a $1.00 per square foot for a rating 50% efficiency (in increments of $.02 per Sq. ft. for each degree of efficiency over 25% up to an efficiency rating increase of 50%). This is a deduction not a credit. Please note that the same energy improvements implemented on government buildings can be taken by the contractor/architect. It is on a first come first serve basis. Your client must go to the governmental agency for an allocation of the deduction.

Builders of New Energy Efficient Homes

Credit Extended through 12/31/2022 at $1,000 and $2,000 per unit. From 2023 through 2032 the credit will be based on the energy efficiency standards (under the old rules) with tax credits ranging from $500 to a maximum of $5,000 per unit.

Electric Vehicles & Clean Vehicle Credit

This much touted credit is up to $3,750 per vehicle for purchases made after August 16, 2022. Please advise your clients

to contact you before buying an electric vehicle if they are counting on the credit. Keep in mind that for 2022 the original 200,000 units per model limit still exists. The 200,000 per model manufacturer limitation will be lifted after 12/31/2022. This has been a nightmare for clients who were told by the salesman that their vehicle qualified only later to discover that was not true.

There will be a credit for buying used EV capped at $25,000 but not for 2022.

To qualify, the vehicle must pass the following:

• Final assembly must be in North America

• Source of critical minerals used in the vehicle

• Battery component of the vehicle must be manufactured or assembled in North America.

• The manufacturer suggests retail price can’t exceed $80,000 for vans, SUVs or pickup trucks. $55,000 for other vehicles.

There are AGI caps on the credit for higher income clients. The AGI cap is for the year of purchase, or the prior tax year’s AGI is capped when greater than $300,000 for MFJ, $225,000 for Head of Household, and $150,000 for all other taxpayers. One caveat that is not mentioned by those touting electric vehicle is the cost of replacement batteries. We had a client in 2021 who spent $20,000 for her Tesla vehicle. There are stories of people getting locked in and out of their EV when the battery failed (not to mention recent examples on the news of EVs catching fire)

This may sound great but keep in mind that this past September the average electric car price was $65,291 according to Kelley Blue Book.

Below are prices for electric vehicles for the same period.

• Tesla Model Y ($65,990)

• Tesla Model 3 ($46,990)

• Ford Mustang Mach-E ($46,895)

• Tesla Model X ($120,990)

• Hyundai IONIQ 5 ($39,950)

• Kia EV6 ($41,400)

• Tesla Model S ($104,990)

• Nissan LEAF ($27,800)

• Kia Niro Electric ($39,990)

• Audi e-tron ($70,800)

Timber Tax Clients Paid Not to Cut

The environmental craze may provide your timber clients cash for not cutting their timber. This may seem a little bizarre but there is a market paying timber owners cash for allowing companies to use the negative carbon imprint of their growing timber. I was actually asked about it this year when a co-worker’s parent was approached to pay them for not cutting their timber. Their contract was for one year.

Many household named companies are trying to improve their image by seeking to reduce their carbon imprint. 450 large companies have pledged to go net zerocarbon by 2050. One way to accomplish this is by buying carbon offsets. What better carbon reducer than timber? Before the current environmental craze, it was difficult for the small timber owner to tap in this market but not today. There are now several companies to help your clients tap into this market.

The IRS has not ruled on the type of income the payment represents is it renting the timber or capital gain?

If I have created an interest, I suggest the following resources to get you started:

• Arbor Day Foundation,

• The American Forest Foundation,

• The New York Times Nov. 23, 2021 “The latest Farm Product: Carbon Credits” by Elizabeth G. Dunn and

• www.indigoag.com/carbon/for-farmers A facilitator to entering into the market.

I hope you have found this useful for your year-end client meetings. My wish to you and your family is for a happy and enjoyable upcoming Holiday Season.

Thomas C. Zoebelein, CPA Director of Tax Research Pearce, Bevill, Leesburg, Moore, P.C.

PIPELINE REFRESHPIPELINE REFRESH

Keeping the

By Matthew Hilburn, CPA, CFE

leaving behind what no longer works

“Keep the best of the past alive and be willing to leave behind what no longer works.” This simple yet deeply profound statement was made by Dee Ann Turner in her book, Bet on Talent, in reference to how Chick-fil-A has built arguably the most successful and widely known brands and culture. Yet, I find myself continually coming back to this statement when having conversations about the pipeline challenges we are facing within our profession. Truth be told, it shouldn’t come as a surprise the challenges we are facing: The baby boomer generation is entering retirement stage, birth rates are down, geographical limitations on job markets are almost nonexistent due to rapidly growing technologies and the availability of information at our fingertips is leading to employers from all corners of the market to compete in real-time, over multiple medias, for the same candidates.

Dr. Joshua McGowan, Assistant Professor with Troy University, recently posted a question on Twitter asking his followers why they thought accounting enrollment is down. This question generated hundreds of responses, of which some of the more compelling comments centered around the following:

• Accounting has a major branding problem. A large majority seem to not know what accountants do and often associate the profession with being good at math or a number cruncher. Accounting needs to be rebranded for what it truly is.

• Waiting to recruit juniors and seniors in four-year colleges is too late. We need to increase our presence well before this point.

• Lack of purpose/meaning. Work has become meaningless and a “check the box” activity.

• We don’t promote the impact you can make on others or how versatile a career in the field can be; focus too heavily on public accounting.

• We don’t promote opportunities outside of public accounting, such as working in industry, working with innovative technology, or working as business partners to deliver value add services that have impacts on real people.

• Too many hours, not enough pay.

• Lack of work/life balance.

• Large educational investment for stagnant wages that do not provide a timely ROI.

• Five-year/150-hour requirement is a novalue add obstacle that deters students.

Let’s go ahead and address that last point, which was cited heavily and continues to come up in most conversations. For purposes of this article, we will focus our time on those actions which we can implement immediately at the micro-level of the individual professional and do not require any sort of legislative or regulatory action.

Brand Image & Messaging

One of the very first things we must all come together on is that we must start recruiting for the accounting profession, not just CPAs and not just public. The inconvenient truth is that not everyone will become a CPA, and our unwillingness to “say that part out loud” or openly accept that reality is lending no favors to our brand, nor does it truly line up with the reality in which we operate.

Now let’s go ahead and address the elephant in the room with that statement: In no way am I saying that we should lower our standards in which we measure employees in terms of ethics, competency, skills, and knowledge. I find it incumbent on us as CPAs and leaders to always encourage students and colleagues to aim for and achieve the highest attainable level. The CPA designation should never be discounted below being among the one of the most trusted, respected, and valued designations in business. What I do mean however, is that the days of “CPA or bust” are part of what has gotten us to this point. We cannot ignore the true value in an accounting degree from a quality, reputable program that we see so often from Alabama’s great universities. After all, these programs are the foundation of the knowledge in which we operate. Everyone has worked with professionals who either never passed the exam or took many years into their career to pass, but were incredible, dedicated, hardworking accountants that performed the same duties alongside CPAs. Often, at least in public accounting, these employees are held to the same continuing education requirements as CPAs.

Additionally, we must realize that by widening our recruitment efforts to the profession over recruiting for just CPAs, we are also indirectly helping our business and the businesses of clients. If you recruit the profession, you are also recruiting governmental accountants, industry accountants, and business leaders/entrepreneurs who will use accounting as the baseline for their other endeavors. These people become clients and business partners in the future. After all, a competent client with the right mix of skills, knowledge, and expertise can have a profound impact on the profitability of an engagement, the efficiency of resources that you must dedicate to that engagement, and it can also have the same impact on the overall morale of the engagement staff.

Part of this means that our early messaging to recruit candidates to the profession could be better served by focusing more broadly on the accounting profession, including the opportunities and versatility of the modern-day accounting professional. Let’s tailor our message to what drives us to do what we do and where we find out meaning and purpose:

• Accountants are complex problem solvers who bring order to chaos in a subject matter that reaches across the world: Our reach = our limitless impact on real people.

• Accountants help individuals and businesses grow and succeed and lend a hand to pull them up when all seems hopeless.

• Accountants want more out of our careers and want to become business owners and leaders. What better way to do that than to sit at the table with C-level clients, successful entrepreneurs, and other highly successful people. You can do this day 1 in our profession and grow yourself in the process to do bigger, better things if you choose.

Accountants and CPAs must not overlook the realities of the day-to-day. This profession offers incredible experience at light speed, but only when the environment and culture of their employer cultivates such meaning and purpose. The younger generation of professionals value a

balance between work and personal life and feel a renewed energy towards working to live, not living to work. With technologies at our fingertips, this balance is possible and can prove to be quite beneficial to the employer as well, but only if the employer is willing to look at itself and make decisions that might not fall within the legacy image of the profession.

Our profession is evolving rapidly thanks to more sophisticated accounting software, data mining and analytical software, blockchain, RPA, and overall familiarity with technology by younger talent. Our brand needs to incorporate the role an accountant can play in technological change and innovation. As a profession, we sit at the forefront of designing and implementing real innovation in what we do. Now is the best time to enter accounting to be part of the technological advancement built on the foundation of blockchain and RPA. By removing unnecessary burdens, we can rebrand ourselves as forwardthinking agents of change and innovation.

The new generation of professionals are increasingly coming to the realization that more money diminishes in value if they cannot find a healthy balance and purpose in the process. This is the real message of this generational change and why the legacy image of our profession is not translating well with younger employees. We cannot continue to manage public or private accounting as it has been done nor can we allow a young employee to work in a repetitive, “check the box” capacity, for the sake of future higher earnings. Some of this translates to allowing remote work or flexible schedules, removing the pressures on staff related to profitability and efficiency metrics, remove minimums on set hours, and allow the professional to be just that: a professional. To quote Dee Ann Turner again, “Always be willing to offer others assistance, solve the challenges, and remove the obstacles that may be preventing others from accomplishing their job.”

Recruiting Footprint

Like so many in the profession, I did not go to college with a degree in accounting in mind. In fact, it was my third major and I only stumbled upon it because it was a required class for my previous major. A taskforce formed by the ASCPA to discuss pipeline initiatives has several younger professionals who share the same story. An overwhelming amount of us in the profession started elsewhere, such was the case of a few auditors in my office a few months ago. Two of the 3 auditors told me that they took the same path, one in engineering and the other in hospitality management and culinary arts. If this trend is so prevalent, then why are we waiting to invest our recruiting efforts so heavily in those who have already chosen the profession, generally around their junior year of college?

The previously mentioned taskforce quickly and decisively concluded that we can no longer dedicate 100% of our recruiting efforts to such a small fragment of our pipeline. What this looks like in practice incorporates several initiatives, most of which require us as individual professionals to initiate and cultivate a grassroots movement. At the college level, we need to branch out of the traditional recruiting efforts at the major universities. This means reaching out to junior/ community colleges, smaller four-year colleges, and HBCUs. We can do this by calling upon the professors, physically being on campus whether it’s as formal as interviewing students or as simple as setting up a table in the hallway and offering coffee and snacks to students, or volunteering to speak to classes or campus organizations. Professional accountants need to offer our skills, knowledge, and expertise to aid academic programs.

There is an unfortunate reality regarding diversity within our profession. There are so many discussions to be had on this subject, and I would encourage us all to listen and start having genuine conversations about how to move forward. Alabama leads the country in number of HBCUs, yet recruiting efforts and partnerships with these institutions appear to be subpar. Part of our discussions and initiatives moving forward must be inclusive of HBCUs and what we can do to support their success and inclusivity. One such example is the latest news out of Alabama State University’s College of Business, which established a student chapter of the NASBA Center for Public Trust. ASCPA’s very own Jeannine Birmingham, along with NASBA, and ASU students and faculty, advocated for this program to further professional opportunities afforded ASU students. This is the caliber of movements that must occur statewide for us to move forward to build a sustainable

pipeline, linking quality students with quality career opportunities.

Lastly, our pipeline initiatives must reach into the high schools. ASCPA is creating a plan for accounting professionals to get in front of students. Introducing the accounting profession to young minds before they reach college will hopefully begin to build interest and curiosity much earlier than in the past. Ideally, we look towards incorporating accounting in the high school curriculum at even the most basic level to spark a student’s interest or help them discover an unknown talent or passion. Therefore, we encourage everyone to reach out to friends and family who work within your surrounding school systems, utilize social media, and call upon local schools to offer your time to speak to their students and/or faculty. Using social media as a kickstart, I have been in contact with a school interested in me speaking to their Future Business Leaders of America organization. Another organization, Business Understanding & Ownership for Youth, has asked that I come speak to their program, and in November, myself and a fellow ASCPA Board member will take part in a roundtable discussion with the Alabama State Department of Education Career Coaches from each school system across the state. Additionally, two four-year universities have inquired as to speaking to their accounting classes and organizations about accounting opportunities beyond public accounting. All of this resulted from utilizing social media to reach as many educators as possible.

We are challenging everyone in the profession to start getting involved now at any institution of learning that will allow you to and push for those that might be reluctant. Everyone can start telling their story today. If your story seems to be at odds with the good news, then start being the agent of change within your organization. Our profession’s future is dependent on you to not wait for someone else to make you relevant in rebranding our profession.

Be a champion for yourself. Be a champion for the profession. Be a champion for others.

Matthew P. Hilburn, CPA, CFE ASCPA Board member and Corporate Accountant for Crowne Health Care

Troy University’s Sorrell College of Business has named its School of Accountancy in honor of Enterprise native William Carr, founder and managing partner of the accounting firm of Carr, Riggs & Ingram, LLC.

Carr was honored Thursday, Sept. 8 during the School’s Accountancy Day festivities on the Troy Campus, where the School’s name was officially changed by Chancellor Dr. Jack Hawkins, Jr.

“On behalf of our Board of Trustees and Foundation Board, and the entire Troy University family, today, and on this occasion, the William H. Carr School of Accountancy is created,” Dr. Hawkins said.

Founded in 1992, Carr has led CRI to become one of the fastest-growing accounting and advisory firms in the nation, experiencing consistent year-over-year growth. Under his leadership, CRI rose to become the 19th nationally ranked accounting and advisory firm in 2018 by Accounting Today magazine.

“Bill Carr, is a true gentleman and highly respected throughout the country as an ethical and entrepreneurial leader,” said Sorrell Dean Dr. Judson Edwards. “It is our

honor to be home of the Carr School of Accountancy and I am certain Bill would never allow his name to be associated with any institution not meeting his high personal standards of excellence and integrity.”

The firm has offices in Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, New Mexico, North Carolina, Tennessee, Texas and Chihuahua, Mexico. It employs more than 2,300 people and represents more than 100,000 clients in all 50 states, Canada, Mexico, Puerto Rico and overseas military installations. The Carr School of Accounting is one of the few in Alabama to hold AASCB Accounting Accreditation.

“Troy University has been extremely important to our firm … our fertile ground is Troy University. That’s where we get our foundation,” Carr said. “We’ve got lot of partners from TROY and it’s really in leadership positions; (Troy University) has meant a lot to us.”

Carr told the students and guests assembled in the Lamar P. Higgins Ballrooms on the Troy Campus that he’s never seen such a demand for CPA and advising services.

“You are the supply, and we have the demand (for your skills),” he said, adding “four pointers” for students entering the marketplace.

“First, what you do here at the University is important – your grades matter because … they demonstrate work ethic and intelligence. Second, when you finish at TROY, the flag you carry doesn’t matter anymore and you’re on a level playing field. At that point in time, it’s up to you to continue to learn, to continue to accept change and be successful,” he said.

Carr added that students should always practice with integrity and practice with vision.

“Our world is changing so fast and what we do today will not be what we’re doing 10 years or even five years from now. Keep yourself relevant,” he said. “You are entering a great profession … and I’m envious of that. I came across a quote that said ‘if you enjoy what you do, you’ll never work a day in your life’ – I can say that I’ve never worked a single day.”

Pictured above, Chancellor Dr. Jack Hawkins, Jr. and William (Bill) Carr unveil the new name for the School of Accountancy.

Article by Clif Lusk, University Relations Coordinator

Photo by University Photographer, Troy University

Troy UniversiTy names school of accoUnTancy in honor of William h. carr

ASCPA hosted the 35th Annual Financial Accounting and Auditing Conference Friday, September 30, on the campus of Auburn University at Montgomery. More than 70 participants gathered for the in-person conference and heard from a terrific line-up of speakers, covering a multitude of topics. We hope you will save the date and join us next year!

Federal Tax Clinic Hybrid | Tuscaloosa 11/16/2022 (8:30 AM - 5:10PM) 11/17/2022 (8:30AM - 4:20PM) 16.0 CPE (2 Ethics, 14 Tax/Other)

Member Appreciation Series: Paychex Virtual | 11/17/2022 (12:00PM-12:50PM)

TBD | 1 Other

Federal Income Tax Update with Don Farmer Virtual | 11/18/2022

A&A Update with Jim Martin Virtual | 12/1/2022

ASCPA’s Independent Contractor Workshop featuring Bradley Virtual | 12/1/2022

Women’s Leadership Forum Virtual | 12/7/2022

Don Farmer’s Corporate /Business Income Tax Update with Bill Harden Virtual | 12/12/2022

A&A Update with Jim Martin Virtual | 12/14/2022

ASCPA’s Governmental Accounting and Auditing Forum ATTENDING BOTH DAYS (GAAF)

Hybrid | Montgomery 12/8/2022 (1:00PM-4:00PM) & 12/9/2022 (8:30AM-12:00PM)

Various | 8 AA

ASCPA’s Governmental Accounting and Auditing Forum DAY ONE ONLY (GAAF1)

Hybrid | Montgomery 12/8/2022 (1:00PM-4:00PM)

Various | 4 AA

ASCPA’s Governmental Accounting and Auditing Forum DAY TWO ONLY (GAAF2)

Hybrid | Montgomery 12/9/2022 (8:30AM-12:00PM)

Various | 4 AA

Member Appreciation Series: CTA Virtual 12/6/2022 (12:00PM-12:50PM)

TBD |

Other

Member Appreciation Series: AON Virtual 1/19/2023 (12:00PM-12:50PM)

TBD |

Member Appreciation Series: February Virtual 2/15/2023 (12:00PM-12:50PM)

TBD

Member Appreciation Series: March Virtual 3/15/2023 (12:00PM-12:50PM)

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Member Appreciation Series: April Virtual 4/17/2023 (12:00PM-12:50PM)

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WOMEN'S LEADERSHIP

7 | Virtual

Will you BE BOLD?

Being Bold means defying odds, breaking barriers, changing norms and achieving your biggest obstacles. And that’s what we ’ re doing at this year ’ s Women’s Leadership Forum on December 7 we ’ re Being Bold

Designed to elevate, empower and propel women at all stages of their careers, the Women’s Leadership Forum offers dynamic speakers and inspiring content that will help you thrive in the workplace Throughout the conference you'll learn:

How to master your inner critic and stop feeding into imposter syndrome

changing negotiation

Proven strategies to empower success during disruption

to evaluate the habits you want to change and how to move forward

provide radical support for women while debunking beauty myth

Rally alongside a community of like minded women, and enjoy powerful sessions that will teach you to become more resilient. Be BOLD and register by Nov. 11 to save your seat at the early bird rate.

Encouraging Supporting &

the Next Generation of Accountants

By: Dr. Josh McGowan and Dr. Richard Turpin

There were 32,186 new CPA candidates in 2021. This represents approximately 2,000 more candidates than in 2020. Unfortunately, these are the two smallest classes of new CPA candidates in the last 15 years. Furthermore, the 2021 class of new CPA candidates is about 33% smaller than the 2016 class1. Regrettably, these trends appear likely to continue as college enrollments are down approximately 10% over the last decade. In a period of staffing shortages, how can we address, or at least manage, the potential issues these declining numbers could have on our profession?

To begin, it is imperative that we spread positivity about the accounting profession. There are many incredible facets of our profession that younger generations are not exposed to. The countless opportunities, flexibility, stability, strong earnings potential, and ability to positively impact the lives of others are just a few trademarks of the accounting profession. Before spreading the good news about the accounting profession, we need

to educate ourselves about the upcoming generations. While the overall number of students selfselecting into our profession might be diminishing, if we are willing to understand their characteristics, motivations, and goals, we might be able to better attract, support, and retain them as accounting professionals.

Generation Z, more recently referred to as “Zoomers”, are currently between the ages of 10-25. Some are starting to enter the workforce and many more will enter in the upcoming years. Recent Gen Z academic studies found “Zoomers” desire mentorship more than prior generations2,3. This provides a fantastic opportunity as we are a profession built on mentorship. We can reach out to students at local high schools or colleges and build meaningful relationships. As most of these students have no prior connection to our profession, establishing connections might encourage them to join our ranks.

“Zoomers” are looking for an opportunity for growth when selecting a career. In fact, “Zoomers” ranked promotion opportunities as the 2nd highest factor when considering their work values4. Although the accounting profession is abundant with advancement opportunities, “Zoomers” are not fond of tying advancement to years of service. Too often, this is either the reality in accounting organizations or at least the perception many have surrounding our profession. Gen Z prefers actionable checklists of what needs to be accomplished for them to obtain upward mobility within an organization. Examples of items on a checklist in a public accounting firm might be tasks such as a certain number of tax returns completed without error or staying under a budget on a percentage of audit assignments. Although the tasks would vary from organization to organization, the overarching point is allowing new, Gen Z, employees to track their own progress and give them a sense of control in their career progression.

A study of Gen Z business students discovered the number one value a Zoomer desires out of their career

is “the ability to see the results of their work, reflecting their interest in meaningful work and making an impact4.” Fortunately, for our industry, we are constantly providing our clients with purposeful work. Work-related to the BP oil spill, PPP loans, and helping small businesses thrive through tax planning and financial knowledge are all examples. As professionals in the industry, we understand how meaningful this type of work is because we see how it directly impacts the quality of life of those we serve. However, this is not as apparent to those not within our ranks, especially the younger generations. This can be improved by discussing with Gen Z what the final product of their work will accomplish. Students, who might have just learned about accounting careers in the last few months, are quickly asked whether they want to go into public accounting or private industry. They may even be asked if they prefer tax or audit. These are great conversations to have, but it behooves our industry to first explain how each of these paths benefits our clients and our communities. This will allow “Zoomers” to better understand the impact of our work.

Each of the items discussed above is backed by survey data of individuals in Generation Z. As academicians we are anecdotally seeing the same values play out within the classroom. Gen Z has been influenced by different events and circumstances than previous generations and as such, they have different motivations and values. Further, with labor shortages across many industries, “Zoomers” are presently being recruited into different industries as early as high school. For the accounting industry to maintain its labor competitiveness, we not only need to do a better job of explaining what we do and why we do it, but it is imperative we educate ourselves on what these future employees value. It can no longer be assumed that the lure of the accounting profession is sufficient for attracting the next generation. Gen Z is a capable, hardworking group, and it is our duty to go out and excite “Zoomers” about all the wonderful, life-changing, opportunities our profession offers.

1AICPA 2021 Trends Report

2Barhate, B., & Dirani, K. M. (2021). Career aspirations of generation Z: a systematic literature review. European Journal of Training and Development.

3Iorgulescu, M. (2016), “Generation Z and its perception of work”, CrossCultural Management Journal, Vol. 18 No. 1, pp. 47-54.

4Maloni, M., Hiatt, M. S., & Campbell, S. (2019). Understanding the work values of Gen Z business students. The International Journal of Management Education, 17(3), 100320.

Dr. Josh McGowan, CPA Assistant Professor of Accounting, Troy University

Dr. Richard Turpin

Associate Professor of Accounting, Troy University

Building Blocks to Quality

The ABCs of Risk Management

By CNA Risk Control Group

Many CPAs fondly remember toy wooden blocks of their early childhood, colorfully displaying the letters of the alphabet.

As children, future CPAs may have spent more playtime counting and organizing the blocks, rather than spelling with them. Regardless, those toy alphabet blocks helped develop a foundation for future learning and growth. Similarly, there are fundamental risk management practices CPA firms can follow to establish a foundation for quality and growth.

A is for acceptance (and continuance)

A CPA firm’s first opportunity to develop a commitment to quality and good risk management, rests with the client and engagement acceptance process. Before ever receiving a request for services or proposing on an engagement, a CPA firm first has to determine its appetite for risk and the services it will provide. Based upon these factors, which may encompass specific areas of expertise, industry or service niches, the firm can develop an ideal client profile, against which all prospective clients and engagements may be evaluated.

Some clients may clearly be a good fit for the firm. Some clients may stray far from the ideal client profile and present too high of a risk to accept. Other clients may require a thoughtful acceptance

decision to understand and identify risks. In such situations, the firm could implement procedures to manage identified risks. For example, a retainer could be collected for an accepted client that has a risk of nonpayment of fees. The client acceptance process should, at a minimum, involve consideration of the following:

• Client integrity;

• Client financial stability;

• Independence, where required;

• Potential conflicts of interest; and

• Alignment of client and firm’s expectations of the services to be provided.

Client and engagement acceptance procedures should be consistently applied across the firm. Acceptance decisions related to higher risk clients and prospective clients, such as high net worth individuals, public companies, financial institutions, or companies with negative cash flow indicators, may need to be elevated for additional consultation or approval.

The client continuance process is simply an extension of the client acceptance process. The firm addresses many of the same questions with the added benefit

of additional information about the client. All clients should be subjected to a continuance analysis, or re-accepted, at least annually and more frequently if there has been a significant change at the client or firm. Clients or engagements with identified risks should receive additional focus to ensure continuation of quality services or be considered for termination.

B is for billing practices

Many CPAs dread the billing process, perceiving it as an administrative task that diverts time and resources away from the performance of client services, rather than getting paid for a job well done. However, when it comes to risk management, billing practices have more value than just collecting fees.

In the event of a professional liability claim, billing records can provide important support for the scope and timing of services performed. For example, billing a client for the services outlined in an engagement letter helps support the defined scope of the engagement. Further, billing practices can be a preventative risk management tool. Billing and collecting at regular intervals can help identify cost overruns which may be a sign of scope creep. Discussing a bill with the client could identify a client’s dissatisfaction with

service while there is time for correction.

Consider implementing the following tips in your billing practices:

• Use retainers to manage collection risks;

• Monitor outstanding receivables and suspend work for non-payment;

• Bill early and often; and

• Attach a copy of the engagement letter to support the billing narrative.

C is for communication

Client communication is essential to the success of a CPA firm. Through oral, written and electronic communication, CPAs gather, analyze and report on information to the client. A breakdown in communication between the client and CPA could lead to differing service expectations or, potentially, to errors in a deliverable.

Clear, concise and professional communication can do a great deal to help reduce professional liability risk. The reverse concept is true of unprofessional or vague communications. In the event of a professional liability claim, such communications could call the CPA’s independence or objectivity into question or argue that the CPA did not meet service expectations.

Important tips for appropriate communication with clients include:

• Maintenance of regular communications throughout the engagement;

• Elevation of issues to the client without hesitation;

• Documentation of oral discussions in a memo to the file or follow-up e-mail to the client; and

• Limiting, or, better yet, avoiding, communications with third parties.

Policies governing appropriate communication with clients, including use of e-mail, text messaging and social media, can assist firm personnel in navigating this sensitive component of practice management. If properly addressed, communication can create strong, longterm client relationships and further enhance a firm’s reputation for quality.

D is for documentation

Documentation is a vital component of any engagement, whether it be an attest, tax or consulting engagement. It is so engrained in the profession that it is specifically addressed in multiple professional standards. Despite this prominent position in the profession, the level of documentation often falls short.

Weak or inadequate documentation can be detrimental in the event of a professional liability claim. If it is not documented, it did not happen. Conversely, strong documentation may reduce the likelihood of a client dispute rising to the level of a claim. For example, an e-mail reminding a client of their responsibility to provide supporting documents by a certain date in order to complete services by a deadline could be useful if the deadline was missed due to the client’s procrastination.

Good documentation should include:

• Nature, timing and extent of procedures (when applicable);

• Assumptions, whether made by the client or CPA;

• Important client conversations;

• Departures from engagement parameters;

• Items for client follow-up; and

• Conclusions reached.

Documentation is a CPA’s ally and should be a primary focus of any engagement. Good documentation and quality services go hand in hand.

D does double duty and is also for data security

CPA firms are at risk of a cyber-attack in light of the abundance of confidential and sensitive client data received, used and stored. As such, it is essential that CPA firms implement sound data security protocols to help prevent, detect, and contain a data security incident. This starts with practicing good data hygiene which includes understanding:

• How data is received by the firm;

• What data is received;

• What protections are required by law or regulation;

• Where data is stored;

• How long data is stored; and

• How data is disposed.

Security measures should be implemented wherever sensitive data is stored, and unnecessary or outdated client data should be moved or purged in accordance with the firm’s document retention policy. The risk of a data security incident, and the cost of responding to such, can increase significantly if a firm has not implemented appropriate data management processes.

E is for engagement letters

The significance of having an engagement letter for every engagement should not be underestimated. This document memorializes the agreement between a CPA firm and its client, defines the parameters of the service to be performed and guides the engagement from beginning to end.

An engagement letter helps align firm and client expectations, demonstrate compliance with professional standards, provides for the efficient resolution of client disagreements, or may even identify opportunities to provide a client with additional services. Consider a tax preparation client that requests assistance planning for the following tax year. Without a clearly defined scope of services, limiting the engagement to tax compliance only, fees for a tax consulting work could have been lost as part of the existing tax preparation service. When services expand beyond the scope of the original engagement, an amended or a new engagement letter should be issued.

CPA firms can reduce the administrative time to draft engagement letters by maintaining engagement letter templates to be customized for each engagement. Sample templates are available from your professional liability insurer, the AICPA or paid providers, and can help get you started. A well drafted engagement letter should, at a minimum, include:

• A detailed scope of services;

• The client’s and CPA’s respective responsibilities;

Employee Benefits Administration: How to Manage Benefits Effectively

Implementing employee benefits can boost employment satisfaction and. Due to nationwide labor shortages, businesses have shifted benefit packages from a nice-to-offer to a must-offer. According to the 2022 Paychex Pulse of HR Survey, organizations have increased their benefit offerings by an average of 22% compared to the year before the COVID-19 pandemic.

With benefits packages becoming increasingly necessary to stay competitive, benefits administration software is critical for effectively managing these offerings.

What Is Benefits Administration?

Benefits administration is the process of creating, developing, managing, and updating the benefits program that an organization offers its employees. Benefits administration software can streamline ongoing benefits management tasks such as benefits reporting, communicating to employees, conducting audits, etc.

What Does an Employee Benefits Administrator Do?

The benefits administrator is typically responsible for auditing current benefit offerings, investigating new benefits, and monitoring the day-to-day operations of benefits programs. They also maintain compliance with federal laws that govern health, retirement, and other benefits.

Steps in Benefits Administration Audit Your Benefits Package

Offering benefits to your employees is a balancing act between meeting employees’ needs and staying within your budget. An audit might reveal ways to save money, boost offerings, or receive taxadvantages, such as:

Health care benefits: For smaller budgets, you could combine health savings accounts with qualified high deductible health plans. Also, flexible spending accounts for medical expenses do not require any employer contributions.

Retirement savings: Help employees save for their retirement by offering a qualified retirement plan. Tax credits may

be available for setting up the plan and educating employees about it

Training: Train employees on the job or let them take education courses outside of work. This can be a tax-free benefit for employees.

No-cost benefits: Consider offering flex time, work from home, or other arrangements that support work/life balance.

Establish a Benefits Communication Plan

Developing an ongoing employee benefits communication plan can create favorable perceptions that drive strategic business goals. Some communication plan best practices include:

Communicate frequently. Send regular communications that are easy to understand, quick to read, and foster positive impressions.

Get started ASAP. When benefit changes are imminent, have all the facts in place before making any official announcement so you can answer employee questions clearly.

Frame the message positively. Employee reactions will depend on how you frame the message. If you are canceling an established plan, make clear you aren’t cutting benefits across the board. Instead, you might communicate that you are providing access to improved benefits.

Don’t use jargon. Health insurance and employee benefits information can be cluttered with confusing insider jargon. Strive for clarity.

Tailor your communications. Consider targeting collateral and communications address to different interests and concerns based on your employees’ demographics or different stages of life.

Use all distribution channels. “Use a variety of methods to reach employees, such as videos, blogs, social media, town

hall meetings, lunch-and-learns, and benefits fairs,” says Paychex HR Services human resources coach Kirsten Tornow. “Some workers tend to appreciate more face-to-face enrollment meetings, while other workers may prefer getting details on their devices, with important information delivered in short, concise bites.”

How Can Employee Benefits Administration Software Help Your Business?

Benefits administration software can help organizations more easily and securely administer benefit packages and encourage employees to use their benefits. It can also make open enrollment easier than a paper system. Most benefits administration software includes a dashboard to view and adjust benefits packages.

Benefits administration software gives employees control over making claims, managing personal information, and updating their coverage. Employees are empowered to make their own changes, freeing up time and resources that would otherwise fall to HR.

Benefits administration software can help businesses stay compliant with federal and local regulations, such as the Affordable Care Act (ACA), the Health Insurance Portability and Accountability Act (HIPAA), and others.

Stay Competitive and Alleviate Administrative Burdens with Benefits Software

Just as important as establishing attractive employee benefits is administering them effectively. You can easily manage all your offerings from one place via employee benefits administration software. This technology provides a holistic view of your company’s benefit plans, helping improve productivity, communication with employees, and your ability to make wellinformed business decisions.

Paychex is proud to be the preferred payroll provider for the Alabama Society of CPAs.

• Any limitations of services;

• A description of the deliverable or work product and any limitations on its use;

• The timing of the engagement; and

• The fee for services.

Additional engagement letter provisions, such as alternative dispute resolution or limitation of liability, where permitted, can be included to allocate risk between the CPA and client.

Now we know our ABCs…

Public accounting is a complex and evolving profession that requires continuous improvement to meet challenges. Yet every firm, whether new or well established, can focus on the fundamentals and learn their ABCs (and Ds and Es) of risk management, helping to blaze a path to success.

This information is produced and presented by CNA, which is solely responsible for its content.

The purpose of this article is to provide information, rather than advice or opinion. It is accurate to the best of the authors’ knowledge as of the date of the article. Accordingly, this article should not be viewed as a substitute for the guidance and recommendations of a retained professional. In addition, CNA does not endorse any coverages, systems, processes or protocols addressed herein unless they are produced or created by CNA. CNA recommends consultation with competent legal counsel and/or other professional advisors before applying this material in any particular factual situations.

Any references to non-CNA Web sites are provided solely for convenience, and CNA disclaims any responsibility with respect to such Web sites.

To the extent this article contains any examples, please note that they are for illustrative purposes only and any similarity to actual individuals, entities, places or situations is unintentional and purely coincidental. In addition, any examples are not intended to establish any standards of care, to serve as legal advice appropriate for any particular factual situations, or to provide an acknowledgment that any given factual situation is covered under any CNA insurance policy. The material presented is not intended to constitute a binding contract.

Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All CNA products and services may not be available in all states and may be subject to change without notice.

Continental Casualty Company, one of the CNA insurance companies, is the underwriter of the AICPA Professional Liability Insurance Program.

By Accountants Professional Liability Risk Control, CNA, 151 North Franklin Street, 16th Floor, Chicago, IL 60606.

“CNA” is a registered trademark of CNA Financial Corporation. Certain CNA Financial Corporation subsidiaries use the “CNA” trademark in connection with insurance underwriting and claims activities. Copyright © 2022 CNA. All rights reserved.

Clients

on Taxes

Congratulations to Alabama’s newest CPA

Christine Baclig Alvarez, Madison

Maximilian Francis Archer, Moody

Melinda Allyn Sanders Atchison, Montevallo

Conor Noah Baird, Valrico, FL

Kevin Ray Baker, Tallassee

Dara Lynn Barker, Alexander City

Samuel James Barr, Madison

Richard Craig Barton, Scottsboro

Gavin Michael Baugh, Birmingham

Judson Hilliard Beedy, Troy

Sandra Lee Besnoy, Tuscaloosa

Curtis Anthony Bockemehl, Altoona

Mary Grace Braswell, Auburn

Anna Kate Brown, Macon, GA

Ian Lewis Bumpas, Birmingham

Mark Howard Burgess, Birmingham

Abigail Kay Choate, Birmingham

Margaret Anne Clark, Birmingham

Alex Kerney Clark, Birmingham

Tessie Dorae Cowart, Macon, GA

LICENSED CPAs!

Nicholas Dean Craddock, Birmingham

LICENSED CPAs!

Leslie Joyce Craft, Wedowee

Madison Rae Daniell, Birmingham

ENTER THE NEXT CHAPTER OF YOUR LIFE

ENTER THE NEXT CHAPTER OF YOUR LIFE

Robert Tucker Davis, Northport Madison Alexandria Dougherty, Birmingham

Logan Timothy Etheridge, Dixons Mills

Annie Laura Ethridge, Hoover

Emily Nicole Frady, Hoover

Kristen Elizabeth Glass, Hoover Colby Trey Goode, Athens

Sara Margaret Graves, Huntsville

Ethan Alexander Guynes, Homewood Tyler Austin Hamp, Trussville

Donna Faye Harrison, Daphne Dawson Forbus Horton, Birmingham Elizabeth Imhoff, Twinsburgh, OH

Sean Paul Ivy, Mobile

Sean Patrick Janelle, Fultondale Hak-Joon Jeong, Duluth, GA Morris Malone Johnson, Huntsville

Sarah Elizabeth Flemming Leonelli, Birmingham

Connor Elizabeth Linton, Geneva Macy Reagan Mathews, Mobile Brady Catherine Mcaleer, Mobile Hannah Louise Mccutchen, Orange Beach Holly Elizabeth Mckeown, Deatsville

Sarah Zimmerman Mezzacapo, Madison Brittany Lynn Nunez, Auburn

Robert Lawrence Olmstead, Athens

Caroline Elizabeth Ozgun, Hoover

Jenifer Ken Phung, Northport

James Hampton Quinn, Athens Tyne Reyburn, Wilsonville

Margaret Taylor Ricks, Atlanta, GA

Robert Mitchell Ritchie, Trussville

Mason Yancey Ruffner, Conroe, TX

Hannah Elizabeth Schuette, Birmingham Hadyn Pignato Smith, Huntsville Mary Grace Sprayberry, Mountain Brook Jajuan Dewayne Stinson, Birmingham

James Baxley Stoke, Birmingham Cherine Desiree Taylor, Athens Chloe Elizabeth Thaeler, Ponte Vedra Beach, FL

Congratulations newly licensed CPAs. You have worked incredibly hard and achieved a

the years ahead!

The investment you have made in your future will provide a great

Katherine Elizabeth Vega, Montgomery Donald Nathan Vickers, Homewood Dawson Lee Wade, Birmingham Michael Edward Williams, Calera Caroline Elizabeth Willoughby, Hoover Taylor Fowler Wood, Athens

made in

achieved a

future

provide a great

between July 1, 2022-August

Accounting is a terrific profession that can both create an excellent standard of living for you and your family and challenge you to

Accounting is a terrific profession

of living for you and your family and challenge you to

professionally and personally. It can also develop and position you for many exciting career opportunities while simultaneously offering a sense of purpose and satisfaction.

for many exciting career opportunities while simultaneously offering a sense of purpose and satisfaction.

position

Here are a few tips that I hope will be helpful as you continue your professional journey:

Here are a few tips that I hope will be helpful as you continue your professional journey:

core values are essential to your success as a professional accountant. It is critically important to understand this and commit to embracing behaviors that will build trust, credibility, and respect.

core values are essential to your success as a professional accountant. It is critically important to understand this and commit to embracing behaviors that will build trust, credibility, and respect.

Congratulations newly licensed CPAs. You have worked incredibly hard and achieved a significant career milestone. The investment you have made in your future will provide a great return in the years ahead!

Your technical skills are the currency that will finance your professional career. Focus on continually developing and enhancing them and adopt a philosophy of lifelong learning and improvement.

Accounting is a terrific profession that can both create an excellent standard of living for you and your family and challenge you to grow, professionally and personally. It can also develop and position you for many exciting career opportunities while simultaneously offering a sense of purpose and satisfaction.

Your technical skills are the currency that will finance your professional career. Focus on continually developing and enhancing them and adopt a philosophy of lifelong learning and improvement.

day, every interaction, presents an opportunity to add value. Be mindful of this reality because, over the long term, your ability to add value will be the key determinant of your success.

Every day, every interaction, presents an opportunity to add value. Be mindful of this reality because, over the long term, your ability to add value will be the key determinant of your success.

Change is constant and inevitable, and the pace of change is accelerating. But change is not to be feared; rather, it should be welcomed! This is particularly true relative to new and powerful technologies, which have the potential to enhance your performance, productivity, and value in the marketplace.

Here are a few tips that I hope will be helpful as you continue your professional journey:

Change is constant and inevitable, and the pace of change is accelerating. But change is not to be feared; rather, it should be welcomed! This is particularly true relative to new and powerful technologies, which have the potential to enhance your performance, productivity, and value in the marketplace.

Never underestimate the power of personal relationships in helping advance your career. Make it a priority to devote enough time to develop and nurture them on a regular basis and you will realize a significant return on your investment.

Never underestimate the power of personal relationships in helping advance your career. Make it a priority to devote enough time to develop and nurture them on a regular basis and you will realize a significant return on your investment.

• Certain core values are essential to your success as a professional accountant. It is critically important to understand this and commit to embracing behaviors that will build trust, credibility, and respect.

Finally and importantly, make the time to mentor, coach and develop those who come behind you and to give back to the communities where you live and work. As former President John F. Kennedy said (quoting the Gospel of Saint Luke): “From those to whom much has been given, much is expected.”

Finally and importantly, make the time to mentor, coach and develop those who come behind you and to give back to the communities where you live and work. As former President John F. Kennedy said (quoting the Gospel of Saint Luke): “From those to whom much has been given, much is expected.”

• Your technical skills are the currency that will finance your professional career. Focus on continually developing and enhancing them and adopt a philosophy of lifelong learning and improvement.

All the best for a successful career!

All the best for a successful career!

• Every day, every interaction, presents an opportunity to add value. Be mindful of this reality because, over the long term, your ability to add value will be the key determinant of your success.

• Change is constant and inevitable, and the pace of change is accelerating. But change is not to be feared; rather, it should be welcomed! This is particularly true relative to new and powerful technologies, which have the potential to enhance your performance, productivity, and value in the marketplace

• Never underestimate the power of personal relationships in helping advance your career. Make it a priority to devote enough time to develop and nurture them on a regular basis and you will realize a significant return on your investment.

• Finally and importantly, make the

Jerry Maginnis, CPA, is a retired KPMG audit partner and a board member of several public companies. He is the

of “Advice for a Successful

in the Accounting Profession”,

Jerry Maginnis, CPA, is a retired KPMG audit partner and a board member of several public companies. He is the author of “Advice for a Successful Career in the Accounting Profession”, recently published by Wiley and available on Amazon.

Jerry Maginnis, CPA

Jerry Maginnis, CPA

Looking Ahead to the 4th Quarter of 2022: Key Federal and State Tax Priorities at the Close of the Year

By Karen R. Miller, University of Alabama

After nine months of fairly continuous legislative debate and negotiations at the federal and state levels, it appears that the last two months of 2022 may be marked by:

• A potential flurry of technical guidance related to the recently enacted Inflation Reduction Act;

• Efforts by the states to address any conformity issues resulting from the Act and to appropriate surplus from fiscal year 2022; and

• Lobbying efforts for the upcoming year-end federal extenders bill.

As we move past the October 15th filing deadline, it will be important for practitioners and their clients to monitor these areas and consider the impact on year-end tax planning for individual and business clients.

Outlook in D.C.

Potential for Legislation and Technical Guidance in November and December

As this issue goes to press, the Senate has approved the short-term funding bill which will prevent a government shutdown, and the legislation is now moving to the House for a vote prior to the planned six-week hiatus for the

mid-term elections in November. The House and Senate are expected to recess for the month of October and the first two weeks of November, and their return will leave only a short window of time to address any final legislative priorities before the close of year.

The post-election, lame-duck session could be the focus of renewed lobbying efforts for provisions such as the full expensing of research and development costs, which have been widely discussed over the past nine months but have failed to gather the necessary support for enactment. Over the past few weeks, we have a seen a large number of public announcements by companies which are significantly impacted by the switch to mandatory capitalization of research and development costs in 2022, many of which have highlighted the billion-dollar adverse impact on expected cash flow and income tax payments at the federal and state level. It is expected that the these industries will continue to push for the potential return to full expensing through the incorporation of a provision in the year-end extenders bill, but as of the time of publication, the ultimate likelihood is highly uncertain. Taxpayers which have significant levels of research and development costs should prepare for the possibility that the legislation may not be enacted by the end of the year and consider the impact on any final estimated tax payments for the 2022 tax year.

It is also expected that the Treasury Department and the IRS will begin to issue interim guidance related to several key areas of the Inflation Reduction Act, including:

• The new alternative tax on book income for large corporations;

• The new excise tax on repurchases of stock by publicly traded corporations; and

• The new clean-energy tax credits.

Many of the provisions in the Inflation Reduction Act have effective dates of January 1, 2023, and it is highly unlikely that the regulations, which will provide much-needed clarity and resolution, will be released in the next few months due to the volume of the issues which will have to be addressed. The legislation granted the Treasury Department broad regulatory authority, particularly as it relates to the new alternative tax on book income, and it is expected that extensive work will be undertaken. Consequently, it now appears likely that the Treasury Department and the IRS will issue interim guidance through a series of notices in order to provide more immediate clarification concerning the various technical and procedural issues associated with each of the three key provisions in the Act. It is expected that the interim guidance might address issues such as:

• The calculation of the adjustments necessary to arrive at the book income base upon which the new corporate alternative minimum tax will be assessed;

• The application of the new excise tax for stock repurchases in numerous merger and acquisition transactions, such as leveraged buyouts and the utilization of convertible securities or preferred stock; and

• Clarification regarding the prevailing wage and apprenticeship program requirements for the energyrelated tax credits authorized by the Act.

Outlook in Montgomery

Consideration of Federal Conformity Issues Related to the Inflation Reduction Act and Deliberations over the Use of Surplus in the Fiscal Year 2022 results

Closer to home, we expect the focus of the next two months to be primarily on two key areas:

• The consideration of any legislative changes which may be needed as a result of the enactment of the Inflation Reduction Act; and

• Deliberation concerning the utilization of budget surplus from FY 2022.

In August, the ASCPA State Tax Committee met with representatives from the Alabama Department of Revenue (ADOR), and one of the key topics for discussion was the proposed approach for the review of the Inflation Reduction Act and the identification of any legislative changes which might be necessary to update Alabama’s

income tax provisions. The mutual goal of both the ASCPA and the ADOR is to identify any needed legislative changes well in advance of the beginning of the regular session in early 2023.

The ASCPA State Tax Committee will begin its detailed review of the potential state considerations associated with the Inflation Reduction Act after the October 15th deadline concludes, and we anticipate that one of the areas for which revisions will likely be necessary is the incorporation of the new federal alternative book income-based tax into the calculation of the Alabama corporate federal income tax deduction. The current Alabama statutes and regulations reference the previous federal alternative minimum tax for corporations, which was repealed through the enactment of the Tax Cuts and Jobs Act of 2017. The State Tax Committee will update the ASCPA members as the review process unfolds, and we encourage members who have any concerns related to specific provisions of the Inflation Reduction Act to contact the ASCPA.

Between now and the start of the new year, we also expect to see considerable discussion related to the anticipated FY 2022 Alabama budget surplus and the potential tax benefit provisions which may offered to Alabama taxpayers. As of the time of publication, the exact amount of the FY 2022 surplus is still being calculated, but the state tax revenue collections as of the end of August indicate that the surplus could be significant, and preliminary discussions concerning any tax benefit provisions for Alabama taxpayers have already commenced. Provisions which may be considered include a one-time rebate, similar to the rebates recently granted by other states, increased standard deductions, and credits for taxpayers with relatively low levels of adjusted gross income. Similar to the timing at the federal level, we expect the deliberation over this issue to continue in the background through the November elections and then return to the forefront shortly after the elections conclude. The ASCPA State Tax Committee will update members as additional information becomes available later this fall.

Karen Miller, CPA Instructor, Culverhouse School of Accountancy University of Alabama.

Anglin Reichmann Armstrong, P.C. is pleased to announce several promotions for its employees:

Jacqueline Sasser - Manager Audit & Assurance Services

Kayla Burgess - Manager Client Accounting & Advisory Services (CAAS)

Rebecca Givens - Manager Tax Advisory Services

Christine Hopkins - Supervisor Tax Advisory Services

Elissa Radway - Senior Accountant Solutions Advisory Services

Fanny Starzmann - Senior Accountant Tax Advisory Services

Jack Kline - Senior Accountant Tax Advisory Services

John Prince - Senior Accountant Audit & Assurance Services

Julie Long - Senior Accountant Solutions Advisory Services

Leah Lawrence - Senior Accountant Tax Advisory Services

“Leadership skills are best learned by doing,” says Brandon Smith, Managing Partner.

“By accepting the next challenge in their careers, these individuals are hitting their stride for success and growth. I can’t wait to see what they accomplish here at Anglin in the coming years.”

Zachary Clifton, CPA, chief accountant/deputy finance director for City of Vestavia Hills, was featured in the Birmingham Business Journal recently in an article focusing on statewide efforts to fix Alabama’s municipal auditing woes.

In the article Clifton said the city was unsure at first whether or not it would be required to complete a single audit, and that the delay was caused by staffing issues.

“It was the furthest they’d been since I could go back and see the audits,” Clifton said.

Clifton started in his current role last September. Last year Vestavia Hills had to request two deadline extensions for its audit to Sept. 30. Municipal audits are technically due at the end of March, but Clifton said it is common for cities and towns to request an extension to June 30.

Jackson Thornton, a certified public accounting and consulting firm headquartered in Montgomery, AL, is pleased to announce that Ashley Taylor has successfully completed the rigorous certification process with the National Association of Certified Valuators and Analysts® (NACVA®) to earn the Master Analyst in Financial Forensics® (MAFF®) credential.

Taylor, Principal and Director of Recruiting, has worked in the firm’s Business Valuation and Litigation Consulting group since 2009.

“The Master Analyst in Financial Forensics credential is designed to provide assurance to the business and legal communities - the primary users of financial forensic consulting services - that the designee possesses a level of experience and knowledge deemed acceptable by the Association to provide competent and professional financial litigation support services,” stated NACVA’s Chief Executive Officer, Parnell Black, MBA, CPA, CVA. “The designation is an indication to the professional community that Taylor has met the Association’s rigorous standards of professionalism, expertise, objectivity, and integrity in the financial litigation consulting disciplines.”

Taylor received her Bachelor of Science in Business Administration and Master of Business Administration from Auburn University Montgomery. She is a graduate of the Emerge Montgomery Torchbearers Leadership Class IV and the Leadership Montgomery Legacy Class XXXVII. She served on the inaugural Junior Executive Board for Child Protect Children’s Advocacy Center, is a past president of Jackson Thornton Young Professionals, and a past president of Emerge Montgomery. She currently serves on the Montgomery Area Chamber of Commerce’s Women in Business Council, the Montgomery Area Chamber of Commerce’s Talent Recruitment Initiative Committee, and board of directors of the Kiwanis Club of Montgomery. Taylor was named as Emerge Montgomery’s 2015 Young Professional of the Year and Auburn University Montgomery’s College of Business 2017 Outstanding Young Alumni.

JamisonMoneyFarmer PC is pleased to announce the following promotions:

Morgan Akins, CPA has been promoted to Manager. Morgan began full time at JMF in 2014 as a staff accountant in tax and accounting. She worked as an intern for JMF during the 2013 and 2014 tax seasons. She graduated with a Bachelor of Science in Commerce and Business Administration in Accounting and has a master’s degree in accounting from the University of Alabama. Morgan is the Treasurer of Arc of Tuscaloosa and is originally from Tuscaloosa, AL.

Taylor

Akins

Matt Shirley, CPA has been promoted to Manager. Matt began full time at JMF in 2014 as a staff accountant in tax and accounting. He worked as an intern for JMF during the 2012 and 2013 tax seasons. He graduated magna cum laude with a Bachelor of Science in Commerce and Business Administration in Accounting and has a master’s degree in accounting from the University of Alabama. He is originally from Fayette, AL.

Brennan Bush, CPA has been promoted to Supervisor. Brennan began full time at JMF in 2018 as a staff accountant in tax and accounting. He worked as an intern for JMF during the 2017 and 2018 tax seasons. He graduated with a Bachelor of Science in Commerce and Business Administration in Accounting and has a master’s degree in accounting from the University of Alabama. Brennan is originally from Tuscaloosa, Alabama.

Zach Romain has been promoted to Supervisor. He began full time at JMF in January 2019 as a staff accountant with a focus in tax. Zach worked as an intern for JMF during the 2018 tax season. He graduated with a Bachelor of Science in Commerce and Business Administration in Accounting from the University of Alabama. Zach is originally from Ralph, Alabama, and has one son.

Crystal Lewis, CPA (no photo available) has been promoted to Supervisor. Crystal began full time at JMF in 2021 as a senior accountant in tax and accounting. She previously worked as a Grants Accountant at UAB and as an internal accountant at Cheney Lime. She graduated with a Bachelor of Business Administration, majoring in Accounting from Texas State University. She is the Wow class (4th-6th graders) Sunday School teacher at Fowler Springs Baptist Church. Crystal is originally from Center, Texas, has been married to husband, Jay, for 17 years and has a daughter, Chloë, and a son, Garrett.

Jackson Thornton Asset Management (JTAM), a wealth management firm with offices in Montgomery, Dothan, and Opelika, AL, is pleased to announce that it has been named to CNBC’s 2022 Top 100 Financial Advisors list.

From an initial list of more than 39,000 firms considered, JTAM was ranked 88th of the Top 100 firms across the US. “We are honored to be included in CNBC’s Top 100,” said Thomas Bedsole, President of JTAM. “Our purpose every day is help clients reach their financial and retirement goals. Recognition like this serves to increase the confidence of those clients in JTAM and our team.”

The methodology for the 2022 edition of CNBC’s annual FA 100 ranking of registered investment advisors (RIAs) was prepared in partnership with data provider AccuPoint Solutions. A variety of core data points from AccuPoint Solutions’ database of RIAs were analyzed, ranging from the firm’s compliance record and years in business to total accounts and assets under management.

Warren Averett CPAs and Advisors has made The Top 50 Construction Accounting Firms™ list by Construction Executive (CE) for the third year in a row. Out of the 700+ U.S. construction accounting firms to complete the survey, the firm was ranked number 25.

Warren Averett’s Construction Industry Practice Group is made of more than 60 experienced professionals who stay abreast of regulatory changes and tax strategies so they can best serve the needs of their construction clients. They work one on one with clients to help operate successful businesses through various tax planning strategies, business consulting and accounting services.

“Warren Averett is honored to have been ranked as one of The Top 50 Construction Accounting Firms again this year,” said Will Aderholt, CPA, CCIFP, the Construction Industry Practice Group Leader. “Warren Averett is proud to serve many of the top construction and design firms in the Southeast, and we look forward to providing exceptional service and helping our clients thrive for years to come.”

The firm has been named as the top firm in the large firm category (250+ employees) in Accounting Today’s 2022 Best Firms to Work For list. The Best Firms to Work For distinction identifies and honors the best employers in the accounting profession.

To determine the 2022 list, Accounting Today partnered with the Best Companies Group and used their help to rank companies based on the results of anonymous employee surveys and data on the firms’ workplace policies, practices, philosophies, systems and demographics. These combined scores determined the top companies. Almost 250 firms from across the United States were entered into the process.

Shirley Bush Romain

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:

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• Northwest of Birmingham CPA grossing $315K * Sold *

• Cullman County CPA grossing $340K * Sold *

• Baldwin County CPA grossing $245K * Sold *

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.

TAX ACCOUNTANT WANTED

D. Bruce Logan, LLC is seeking a tax professional with 5+ years experience in individual, partnership, corporate, and/ or fiduciary taxation that is looking for more of a home life/ work life balance.

This position can be full- or part-time with flexible hours. The heaviest workload is from January through mid-May, but never requires more than 40 hours per week. From mid May to early August the workload would be approximately 10 hours per week. The remainder of the year would have a workload of approximately 20 hours per week.

Preference given to applicants with active CPA license, multi-state tax experience, bookkeeping and financial statement preparation, and proficiency with QuickBooks and ProSeries. Corporate experience is also a plus. For more information email bruce@brucelogan.net