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ACCOU NTI NG PI PELI N E I SSU E
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ASCPA Connections
TA B L E O F C O N T E N T S
FEATURES 6
COLUMNS
2020 Scholarships Recipients
Congratulations to the 2020 ASCPA Educational Foundation Scholarship Recipients
PEER REVIEW
AICPA Urges Firms to Schedule Peer Reviews as Off-Site Deadline is Extended
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Ken Tysiac, Editorial Director of the Journal of Accountancy
ZOEBELEIN ON TAX
Thoughts on Planning as 2020 Nears Its End
Tom Zoebelein & Clara Benitez, Pearce Bevill
CPE
Ethics Matters
Sedrik Newbern, Operations Director of Center for the Public Trust
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New Initiatives & Opportunities to Support the Accounting Pipeline The ASCPA Educational Foundation Board of Directors and Accounting Career Development staff are finding new ways to support the future of the profession.
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First Generation College to First Generation Professional
First generation college student turned Director of AUM School of Accountancy offers insights on how to support students making history for their families.
Managing Change in an 22 Ever-Changing Profession
What if we disrupted our profession before someone or something else did?
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Inside the ASCPA Message from Jeannine ............... 4 Message from the Chair ............... 5 Member News ........................... 13 Ordinary People, Extraordinary Impact .................. 16 Mark Your Calendar ................... 18 Classifieds .................................. 22 General CPE Schedule ............... 24 Self-Study CPE ........................... 26 Cover Image: College Accounting Students at 2019 Accounting Interview Day
We’re @ALsocietyofCPAs on Facebook, Instagram, & Twitter— follow us to see the latest from the ASCPA. September/October
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MESSAGE FROM JEANNINE
W
e made it to September! Our good friends and tax columnists, Tom Zoebelein & Clara Benitez, tell us that hindsight is 20/20, and in regard to the year 2020, I could not agree more. There are many things that the ASCPA and your organizations were prepared for going into various crises throughout the year. Still, throughout this health pandemic, there were challenges that revealed opportunities for each of us; opportunities where we have been able to learn and grow. Because of our need to flip the 2020 in-person CPE programs into 100% live-stream and webinars, we recently made a significant change to our web design. Our online CPE Catalog is easier to navigate and includes more self-study and virtual events than ever before. We have added these self-study events to the back of the magazine on page 30 for your convenience. More virtual learning opportunities is something that we hope to continue well after 2020 so that you can easily incorporate CPE into your schedule and gain insights on timely topics.
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ASCPA Connections
The year is not yet over, and as I write this neither is our CPE season. So, I hope to see you online at one of our remaining events. Thanks to our dedicated CPE staff and committee volunteers we are able to host the long-standing annual Financial A&A Conference, an 8-hour A&A event. The event will be held September 25, 2020 and brings the nation’s top A&A experts directly to you. Also, our friends from the AICPA, Alabama Department of Revenue, Black Talon Security, and member-favorite, Jim Martin, will join us on the very last day of the season, Wednesday, September 30, 2020, for 2020-exclusive event, the Annual CPE Meeting. You will have the opportunity to earn 4-hours of prime education geared to readiness and, hopefully, foresight. The agenda is available and registration is open on www.ascpa.org/AM2020. We look forward to the future of the profession with these new changes, but mainly because of the many faces you will see on page 6. The students pictured are scholarship recipients from your contributions to the ASCPA Educational Foundation. The Educational Foundation is adapting to meet the needs of our future CPAs by offering CPA exam scholarships. In the same vein, our Accounting Career Development staff is creating resources and opportunities that meet students where they are and answer frequently asked questions. The ASCPA Peer Review Program is working in partnership with the AICPA to support those of you undergoing system reviews commencing before June 30, 2021; see page 19 for more details about recent extensions. They understand the challenges you have
met and want to continue to make life easier for you in scheduling and completing both your system and engagement reviews. Do not hesitate to contact them with your questions at peer.review@ascpa.org. On the legislative front, a tremendous issue that we are working to resolve is the Alabama taxation of Coronavirus Relief Funds. Somewhere around 2.5 million Alabamians have received either stimulus dollars or PPP grants. Currently these dollars are taxable as Alabama statute does not follow federal statute. ASCPA State Tax Committee leadership has worked long and hard will bill sponsor Senator Dan Roberts and the Alabama Department of Revenue to draft legislation. We hope that the Governor will call a special session so we can introduce and pass this bill; Governor Ivey is well aware of this matter. However, it may bill that our bill will be taken up in the 2021 Regular Legislative Session set to begin February 2, 2021. The bill would be retroactive if it is taken up in 2021. So, as you run into or recognize issues in your work, we hope you will find equity in your connections and the resources available through the ASCPA. We are dedicated to helping you and are eager to create a sustainable legacy through our organization. Please do not hesitate to bring your issues to us. You can always reach us at 334.834.7650 or me at jbirmingham@ascpa.org. Stay well and cheers to all that we have accomplished together thus far in 2020!
Jeannine
MESSAGE FROM THE CHAIR
As we head into the Fall, it sure does feel different, doesn’t it? I am not talking about the weather either because it still feels like Alabama to me. In any other year, most of us would be planning a weekend cheering on our favorite college football team and enjoying hanging out with family and friends in large groups. Now, we are just hoping that our favorite teams will get to play an entire season. What is also different this year is the fact that many of our future CPAs are entering into a school year with uncertainties as to whether they will be in the classroom or having to take their courses online. This issue of Connections focuses on accounting education and the accounting pipeline. These areas are such a key to the future of our profession, and both are facing challenges that are new to all of us. For those of us currently in practice, we can understand the challenges that these times have brought to us as we adjust our pipeline of work to serve our clients better. Accounting educators and students now are facing challenges also that they have never encountered before. Colleges and universities around the country are now challenged with deciding whether to be in the classroom, virtual, or a blending of both. Students are now facing quarantines, masks, and social distancing all while trying to focus on their studies to prepare for their futures. Thankfully, technology has changed so rapidly that meeting these everchanging needs has been easier to adjust to. Can you imagine going through all of this 20 years ago? I have no doubt it would have been much more challenging, but the fact is that today’s students are facing some difficult challenges. The ASCPA Educational Foundation is set up to help in attracting the best and the bright-
est into the accounting profession. We need them more than ever to face these challenging times. The Foundation helps through awarding general, diversity in accounting, and financial need scholarships every year to prospective CPAs. Those scholarships certainly help relieve some of the pressures faced by our pipeline students. While the traditional Accounting Interview Day might not be in the “traditional” format, the ASCPA is working hard to continue to offer the students of smaller programs the opportunity to interview with firms from across the state with the newly developed ASCPA Student Summit at the end of October. I encourage all of our members to get involved as much as possible in these efforts with the ASCPA to help provide a positive impact on the future of our profession. As we think about the future of our profession, let’s turn our attention to the future of the CPA license. This year, both the AICPA Governing Council and the National Association of State Boards of Accountancy (NASBA) voted unanimously to support the advancement of the CPA Evolution initiative that will transform the CPA licensure model to recognize the rapidly changing skills and competencies that are required of CPAs today and in the future. The new licensure model will require each CPA candidate to exhibit core skills in accounting, auditing, tax, and technology. Additionally, each candidate will be required to show more in-depth skills and knowledge in either tax compliance and planning; business reporting and analysis; or information systems and controls. Each successful candidate will get the same CPA license regardless of the discipline chosen. The new exam is expected to be launched in January
of 2024. This will mean big changes to both our educators and our future pipeline. To learn more about the initiative, visit https:// www.evolutionofcpa.org/. With September 30th quickly approaching, I encourage you all to make sure that you have your required CPE. If you still need CPE hours, take advantage of all the ASCPA has to offer by visiting www.ascpa.org/CPE to find offerings to meet your needs. As we move into the Fall, I would encourage all of us to not let the current state of events distract us from the future of our profession. I think we all have learned a great deal from all the new opportunities presented to us in these challenging times. I am hopeful that we will all take advantage of these many opportunities to support our accounting educators and future pipeline and to continue to build an even better accounting pipeline!
Michael
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2020 SCHOLARSHIP RECIPIENTS Audry Anerton University of North Alabama
Chrissa Brown Jacksonville State University
Abbigail Barron Faulkner University
Kelsey Ching Auburn University
Peyton Blair The University of Alabama
Abby Kay Choate BirminghamSouthern College
Matthew Boring Alabama State University
Zachary Collins University of West Alabama
Caitlin Brewer Spring Hill College
Ethan Cowart University of Mobile
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ASCPA Connections
Anna Davis Huntingdon College
Kayla Dollar The University of Alabama at Birmingham
Raina Esteves The University of Alabama
Logan Etheridge University of South Alabama
Marland Gilleylen The University of Alabama at Birmingham
Katherine Golden Auburn University at Montgomery
Alexander Gray The University of Alabama at Birmingham
Will Hancock BirminghamSouthern College
David Hartley Samford University
Anna Hill Samford University
Zackary Himes Troy University
Matthew Lash Spring Hill College
Mackenzie Johnson Auburn University
Autumn Leavins University of North Alabama
Orlanda Johnson The University of Alabama
Jin Kim BirminghamSouthern College
Holly LaForce University of Montevallo
Chardonnay Loadholt University of Montevallo
Annalee Ludham Troy University
Frankie Malveo University of West Alabama
Julia Matthews Auburn University
Jacob McDowell Samford University
Robyn Reed University of Mobile
Brittany Rowe Auburn University
Alexis Thomas Alabama State University
The ASCPA Educational Foundation awards General, Diversity in Accounting, and Financial Need Scholarships each year. Applications for scholarships are accepted from October 2020 – March 2021. Each scholarship is $2500.
Brecht Van Buggenhout University of Montevallo
A total of 30 scholarships are awarded as followed: •
Megan Moland Athens State University
23 SCHOLARSHIPS – One for each
accredited accounting program in
Mallie Saville Auburn University Wai “Winnie” Wong The University of Alabama at Birmingham
Alabama. •
5 DIVERSITY IN ACCOUNTING SCHOLARSHIPS – Awarded at-large
to create a more diverse and reflective Rayley Nelson Jacksonville State University
professional accounting population.
Tyler Sexton Auburn University at Montgomery
• Elizabeth Workman The University of Alabama in Huntsville
Emily Phillips University of Mobile
Caleb Smith University of Montevallo Tessie Yates Troy University
Bethany Randall Jacksonville State University
Savannah Street Auburn University
2 FINANCIAL NEED SCHOLARSHIPS – Awarded at-large
to students in particularly stressful financial situations.
Your contributions to the ASCPA Educational Foundation help support these deserving students as they pursue the CPA license. Learn more about the Educational Foundation and donate at www.ascpa.org/ EdFoundation.
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your contributions supported:
$107,000 Scholarships
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Accounting Students across alabama
Including $37,500 for 19 chapter scholarships
NEW INITIATIVES & OPPORTUNITIES TO SUPPORT THE ACCOUNTING PIPELINE On Friday, August 14, 2020, the ASCPA Educational Foundation Board of Directors held their quarterly meeting via Zoom and discussed the various ways the Educational Foundation can meet the needs of accounting students working to attain the CPA license. Board members present included Chair Gerald Pentecost, Jamey Carroll, Marc Hamilton, Lynne Bozeman, Dennis Sherrin, Amanda Paul, Kevin Cook, and Karen Moore. ASCPA staff, Jeannine Birmingham, ASCPA President & CEO, Renee Hubbard, College Pipeline Initiatives Manager, and Zack Camerio, Membership Relations Manager, participated in the call to ensure the ASCPA staff could support the ASCPA Educational Foundation’s efforts.
Zack Camerio presented the latest initiative to diversify the accounting pipeline. Dr. Dave Thompson, Jr., Alabama State University (ASU) faculty, reached out to Zack with his insights on why their accounting students do not sit for the CPA exam. In large part, his concerns surrounded the high cost of the exam and accessibility of exam review preparation materials. Each section of the exam costs $224.99 (four sections), the Initial Application Fee or Transfer of Credit costs $120, and if a candidate has to retake any section of the exam, the Re-examination Application Fee is $75 for each section. CPA exam review preparation programs can cost upwards of $3200.
Jake Ray, from Merrill Lynch, presented the Educational Foundation’s Quarterly Investment Account Report. The account’s 2020 to date rate-of-return was 4.73.
In response, Zack successfully partnered with Surgent CPA Exam Review to offer their course for $299 to all ASU accounting faculty and students; the market price for their review program is $1599. Surgent CPA Exam Review will also provide all ASU accounting faculty and students to their review prep course materials when ASU establishes a review course for students to enroll in as juniors and seniors.
As of July 31, 2020, the portfolio has a net unrealized gain of $360,160 and assets of $1,770,899. He confirmed that the Educational Foundation did withdraw from the investments this year for partial funding of scholarships. The Board then discussed July 31, 2020, Financial Statement of the ASCPA Educational Foundation, which was $1,742,466 in total assets. This is $105,648 up from the last quarter. Cash assets were down because the 2020 Young CPA Charity Golf Tournament was canceled due to COVID-19. However, the Foundation was still able to fund program expenses, including: • • •
$72,235 in scholarships, two Accounting Career Awareness Program (ACAP) case study winner scholarships, and three endowed scholarships, including one at the University of North Alabama and another at Samford University.
Renee Hubbard initiated discussion to update the Educational Foundation’s mission statement. The Board of Directors contributed ideas and discussed the vision of the organization. They will vote on a final draft of the statement during their meeting in November.
Spurred by this promising partnership, the group further discussed how the Educational Foundation could assist other students with CPA exam fees. The Board of Director decided that, in additional to the 30 scholarships awarded at-large, five new $500 scholarships will be created to alleviate the cost of CPA exam fees. Renee will draft an application for the CPA exam fee scholarships, including financial need criteria and exclusion if the applicant is a recipient of another Educational Foundation scholarship, for the Board of Directors to review and approve of during their meeting in November. After review, the group discovered that a very low percentage of Educational Foundation funding is collected from annual membership dues statements. They decided that a systematic annual fundraising model outside of the Young CPA Charity Golf Tournament and dues contributions was necessary to continue the Educational Foundation’s financial health. Renee proposed a direct ask of members and crowd-funding as plausible solutions. This plan would include removing donation solicitation from annual dues statements, and instead, asking firms and members via a sep-
arate mailer, direct email, or reviving an app that makes reoccurring donations possible. The Board of Directors requested that the Young CPA Cabinet be consulted on the best way to reach and capture donors. The group agreed that considering the timing and the current economic situation that the best time to implement this approach would be May 2021. Zack informed the Board of Directors that ITAC Solutions is in the very early stages of partnering with California based software companies that are interested in diversification of the profession. If a formal agreement is established, the Board of Directors may seek partnership with these organizations to aid their efforts in Alabama. Zack also highlighted that Amazon Smile recently shifted to allow purchases made through the Amazon app to benefit a customer’s not-for-profit of choice. Previously, Amazon would only contribute to the user’s notfor-profit of choice if their purchase was made from a web browser. The ASCPA Educational Foundation is one of many not-for-profits that consumers can choose as their Amazon Smile beneficiary. So, the ASCPA staff will promote this new opportunity to members in all future Amazon Smile marketing. Finally, Renee and Zack highlighted the ASCPA Student Summit on October 29-30, 2020. The new and completely virtual event combines the ASCPA’s most popular student events—the Diversity in Accounting Student Conference and Accounting Interview Day. Day One of the conference is open to all accounting students and will feature round table discussions, interview tips, and Accounting Career Development topics with CPA leaders from across the country. Day Two follows the same format as previous Accounting Interview Days; accounting students from smaller colleges and universities will have the opportunity to interview with public accounting, industry, and governmental entities. Several firms and businesses have already stepped forward to sponsor this event and to make it excellent for our students. The Board of Directors plans to meet again in November 2020 to discuss progress and next steps on all these initiatives.
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FIRST GENERATION COLLEGE TO FIRST GENERATION PROFESSIONAL BY DR. SCOTT LANE
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ASCPA Connections
Traditionally, a career in accounting was seen as a way to enter one of the professions for those without the resources to go to medical school or law school. A first step into a professional life is a big challenge for any student. For those who are first generation college students (i.e. students coming from families where their parents did not attend college), just attending college is one large step in itself. Becoming a first generation professional may seem unattainable. I was a first-generation college student; now I know that I needed more advice. I fell into accounting almost by accident as I changed majors. Since I was good at math I was told I should try accounting. It was the start of a lifechanging trajectory for me and my family. Even today as college attendance has increased, 30% of incoming college students come from families where parents did not attend college. Twenty-five percent of those drop out in their first year. Many are economically disadvantaged without the resources to provide a safety net. Often they are minority students. How do we help these students meet these challenges? Auburn University at Montgomery (AUM) has many first generation college students. My AUM students are often stressed by the need to work their way through school. Their lack of financial resources = need to work = time management issues. Many of the academic problems I see in my office are really life problems intruding into college. Some feel pressure to succeed from family at the same time they feel pressure to support their family – both emotionally as well as financially. I know my family benefited from my college experience as my daughters grew up while I worked on college campuses; they understood how things worked by watching (and sometimes listening to) me. Many first generations are lost because they do not understand that: 1.
2.
3.
Selecting a college (or perhaps even more important – selecting a major) is possibly the most important step in a college experience and that decision is often influenced by chance or convenience. Financial aid, FASFA forms, the total cost of attendance, and scholarships are all often mysterious to new students. Support is available on campus through advisors, programs, and
health centers – if you know how to access it. 4.
5.
Opportunities like clubs and trips are available if you are involved on campus.
come in and speak to them (often about recruiting them!) This is a great tool for providing the role models for them to emulate. •
Our Beta Alpha Psi (BAP) chapter also increases expectations and provides opportunities for events, trips and interacting with professionals. Our BAP chapter was just named a superior chapter by BAP National as a result of our students’ engagement in the organization.
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Retention – I personally speak to any accounting major who gets a D or an F and we discuss an action plan. This is when I hear the problems that often are not academic in nature. We try to make sure we move forward onto a path leading to success.
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We are expanding student work studies and the accounting program has scholarships available specifically for accounting majors beyond those available at the college or university level.
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Mentoring – our faculty try to establish personal relationships as student success is our business. Our CPA Exam pass rate for the MACC graduates is over 75% and students are happy to report back as they pass sections.
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Professional dress for interviews. Our BAP chapter collected over 200 pieces of professional dress donated by CPAs at our annual Financial Accounting and Audit Conference (FAAC) last September. It is an important support for low income students.
Learning how to navigate the institution, its unwritten rules, and the bureaucracy is a skill.
Some students’ lack of resources often leads to delayed entry and/or “impostor syndrome” where students do not feel they belong on campus. Becoming socially isolated and having money problems can increase the chances that a student will drop out. Being a commuter student does not help either of these issues as it can be harder to network and make those important connections. The accounting major provides other problems: often a lack of familiarity with or role models for accounting careers can be an issue - not to mention difficult and time consuming coursework. So what can we do to help First Gen College students become First Gen Accounting Professionals? Many of the things we do at AUM are very deliberately aimed at this group, which is, after all, a decent percentage of our student body. At the AUM level, The Warhawk Academic Success Center (WASC) on campus provides academic success advising and tutoring services. Also the College of Business provides several professional development activities each semester. What does the School of Accountancy do specifically for the accounting students? •
Small class sizes. The average size of an upper division accounting course is 23. For better or worse, our faculty learn names and give students personal attention. Attendance is noted and students are challenged.
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The Accounting Club recruits at freshman orientations; we are the largest club on campus and almost every Monday night, we have a guest speaker from public accounting, the ASCPA, State and Local Government, or other accounting organizations. Students often get to see our successful alumni (“Who were sitting in your seat a few years ago!” - I love to say that). Not only do we feed them dinner, but they get to see professionals dressed for success
What is the impact of COVID-19 on this? Well, FAAC will be on-line this year. As I write this we are making tremendous efforts to open classes on AUM’s campus despite Covid-19. We will not be able to do all of the social (and socializing) events we often do and our classroom interactions will be different due to social distancing requirements but we are working on it. We have a great faculty working hard to provide a quality interaction this semester. Many activities will be online with Zoom and other technologies, where sometimes we find the students are already there, waiting for us. Dr. Scott Lane is Auburn University at Montgomery’s Director of the School of Accountancy. You can reach him at Scott.Lane@aum.edu. September/October
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THE STUDENT SUMMIT OCTOBER 29-30, 2020 For our profession to remain relevant in an everevolving global market, it is imperative that we attract and value diverse talent. The ASCPA is committed to helping members like you succeed in diversifying their talent pool by offering you opportunities to reach students from across Alabama. On October 29-30, 2020, the ASCPA will host the ASCPA Student Summit. This new student conference combines our two most popular student events, ASCPA Diversity in Accounting Student Conference and ASCPA Accounting Interview Day, into one virtual event. The first day of the event will include roundtable discussions
with CPAs and students. CPAs will discuss a broad range of subjects to prepare students for life in our profession. The second day will include a full day of interviews with public accounting firms, businesses, and government agencies. Over 100 students and faculty from across Alabama are expected to attend this event. They will benefit from the dissemination of knowledge and opportunity to add to their professional network. Participating firms and companies will benefit from the opportunity to engage with qualified and diverse candidates. To learn more or to get involved, please contact Zack Camerio at zcamerio@ascpa.org.
Hear from Accounting Pipeline & Diversity experts Interview top talent Meet hiring industry, governmental, & public accounting entities
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ASCPA Connections
9/17/2020 10:12:09 AM
MEMBER NEWS Joshua Russell was one of only 30 CPAs honored by the American Institute of CPAs (AICPA) as a member of the Leadership Academy’s 12th graduating class. Josh was selected based on his exceptional leadership skills and professional experience for the four-day Leadership Academy program, which will be held October 5-8, 2020 Josh works with the firm of Patterson Prince and Associates, P.C., Florence, AL. He is a manager with almost five years of experience with the firm. Before moving to Florence, AL, Josh lived and worked in Kansas and is a 2013 graduate of Washburn University, Topeka, Kansas. Josh is a licensed CPA and a CFE, Certified Fraud Examiner. Currently, Josh is a leader of the ASCPA’s Young CPA Cabinet. He is also involved in his local community serving on the boards for NextGen Shoals and Easterseals of Northwest Alabama and is also an Ambassador for the Shoals Chamber of Commerce. The AICPA Leadership Academy was designed to strengthen and expand the leadership skills of promising young professionals while they network with a peer group of talented and motivated CPAs. The Leadership Academy features career-development workshops and sessions with some of the accounting profession’s most prominent influencers, including Tracey Golden, CPA, CGMA, chairman of the AICPA and Barry Melancon, CPA, CGMA, AICPA president and CEO, Association of Certified Professional Accountants CEO. Participants were selected from public accounting firms of all sizes, business and industry, academia and consulting firms. The 2020 Leadership Academy attendees were recommended by their employers, state CPA societies and/or volunteer organizations. Candidates submitted resumes and a statement explaining how participating in the Leadership Academy would impact them personally and professionally. They also wrote an essay on the topic “The future will bring significant changes to the accounting profession. What do leaders have to get right in order to successfully lead?” To date, more than 385 CPAs have participated in the AICPA Leadership Academy, including several Alabama CPAs. Many of the young women and men have gone on to accept leadership positions in their firms, businesses and volunteer organizations. For more information about the AICPA Leadership Academy, visit AICPA.org/Leadership. Anglin Reichmann Armstrong is pleased to announce that Ryan Campbell, CGMA, CVA will joined its Pensacola office as Partner in Charge this July. As Partner in Charge, Ryan leads management responsibilities and decisions for the Pensacola office. Additionally, he brings a depth of experience and knowledge in key industries that Anglin serves, including Manufacturing, Construction, Government Contracting, Health Care and Real Estate. A Certified Valuation Analyst, Ryan has a special focus on CFO and outsourced accounting advisory services, R&D credits, business valuations and accounting systems. He joined Anglin in 2003 and quickly became active in young professional and small business groups in Huntsville. Ryan and his family will relocate to Pensacola to take on his new role.
Borland Benefield, P.C. is beyond pleased to announce the promotions of Clay Clark to Manager and Leigh Anna Hall to Supervisor. Clay graduated from Auburn University and has over 6 years of experience in audits, reviews, compilations, and tax services. Leigh Anna is a graduate of Auburn University and has over 11 years of experience in tax and accounting services. Please join us in congratulating our two esteemed colleagues on their recent promotions. In a year of extraordinary events and challenges, BMSS Advisors & CPAs’ Don Murphy was one of 10 managing partners throughout the country to be selected for Accounting Today’s 2020 Managing Partner Elite list. The MP Elite are chosen annually based upon sustainable firm growth, strategic planning, diversity and inclusion, innovation and technology, and cultivation of strong firm culture. For 2020, a managing partner’s ability to lead throughout COVID-19, an extended busy season and transitioning to a primarily remote workforce was taken into consideration. Under Murphy’s leadership, BMSS has grown from three original founders with no clients or staff to one of the most respected and largest firms in Alabama with four locations and almost 200 employees. In addition to the CPA firm’s extraordinary growth, BMSS has continued to create value-added companies to help fulfill the multifaceted personal and business needs of its clients. “Our goal has been to create a one-stop shop for our clients’ personal and business needs,” said Murphy. “We launched Abacus Technologies, our managed IT solutions and cybersecurity company, in 2000. Payroll & Benefit Solutions (PBS) was established in 2005, followed by BMSS Wesson Wealth Solutions in 2016 and PBS PEO in 2017. Most recently, in an effort to serve our clients’ advisory needs, we created our Business Advisory and Consulting Services practice area which includes business restructuring and turnaround services, human resources and government contracting consulting.” “I strive to encourage the BMSS team and empower them to do their job while not micromanaging their performance. I also truly love all of our people and try to contribute to the BMSS “family” feel that I believe has helped us create our firm culture.”
BMSS Advisors & CPAs is also pleased to announce that Emily Riles, Tyler Roberts, and Molly Smith have recently been promoted to Supervisor.
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Luke Arnett and Jake Bechert have been promoted to Manager. Brad Brown, Matt Capone, and Trae Zablan, CGMA have been promoted to Senior Manager.
Jackson Thornton, a certified public accounting and consulting firm headquartered in Montgomery, is pleased to announce several recent promotions across Alabama. Kelly McGhee was promoted to Senior Manager. McGhee has served as the firm’s Controller since 2017. Prior to rejoining the firm, she had been with Jackson Thornton for 10 years previously as an auditor in the audit and accounting line of business. McGhee has served as treasurer of the Juvenile Justice Project of Louisiana and secretary/treasurer of the Alabama Dance Theatre. She currently serves on the board of directors of the Family Guidance Center. McGhee received her undergraduate degree from Auburn University Montgomery. Jake Studdard was promoted to Senior Manager. Studdard, who started with the firm in 2013, helps lead Jackson Thornton’s automobile dealership industry niche in the tax line of business. He is a member of the Wetumpka Lions Club and serves on the board of directors of the Wetumpka Area Chamber of Commerce. He is also a member of the DealerCPA network. Studdard obtained his undergraduate degree from Auburn University Montgomery. Austin Gaines was also promoted to Senior Manager. Gaines joined the firm in 2014 and specializes in tax planning and consulting for closely-held small businesses. He is a past president of Emerge Montgomery and served as president of Jackson Thornton Young Professionals (JTYP). Gaines serves on the Montgomery Mayoral Young Professional Council, is vice chair of the YMCA Boys Work Committee, is on the Junior Executive Board for the Montgomery Museum of Fine Arts and on the board of ClefWorks. He is a member of the Kiwanis Club, the Jimmy Hitchcock Committee and serves as a Finance Committee member for the River Region United Way. Gaines holds an undergraduate degree in accounting from Auburn University. Jackson Thornton also promoted Logan Remson, Candace Lawton, Frankie Wilbourne, and Mark Cooley to Manager.
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ASCPA Connections
The Directors of Kassouf & Co., P.C. are pleased to announce Anita Atkinson as the firm’s new Chief Operating Officer. Atkinson joined Kassouf in the second quarter of 2020. As COO, she will lead the firm’s daily operations, which include streamlining internal processes and overseeing firm administration. Atkinson is the firm’s first Chief Operating Officer. Atkinson began her career at Ernst & Young (EY), where she worked in the firm’s audit department. Following her time at EY, she transitioned from public accounting to industry, with most of her industry experience being in pharmaceutical. She has over twenty years of experience providing financial leadership in her previous roles. For ten of those years, Atkinson focused her expertise on planning and strategy. She holds a Bachelor of Science degree from the University of Alabama at Birmingham (UAB).
Lacey Heath was named Partner with Top 100 Accounting Firm, Mauldin & Jenkins, LLC. She graduated with a Master’s in Accounting from Auburn University in 2005 and joined Mauldin & Jenkins shortly after. Services provided to clients include financial statement audits, internal audits and tax services. She is a CPA in the state of Alabama and is also a member of the AICPA. Lacey and her husband, Matthew, reside in Birmingham. Outside of the office Lacey attends The Church at Brook Hills.
The Partners of Russell Thompson Butler & Houston (RTBH) are pleased to announce the promotion of Morgan McDaniel to Senior Accountant. Morgan is a 2017 graduate of the University of South Alabama. She holds a Bachelor of Science in Business Administration with a concentration in accounting. While she has a wide range of practice areas including both tax and audit work, Morgan’s unique focuses include insurance companies and physicians’ groups.
Wilkins Miller LLC, an accounting and advisory firm with offices in Mobile and Fairhope, is pleased to announce that Tammy Smith has successfully completed and passed the Certified Bookkeeper exam administered by the American Institute of Professional Bookkeepers (AIPB). The Certified Bookkeeper designation requires a level of knowledge and skill needed to carry out key functions through the adjusted trail balance including payroll and inventory. Smith has over 16 years of experience in bookkeeping, sales tax and payroll preparation. She studied Payroll Accounting at the University of South Alabama and is a Certified QuickBooks ProAdvisor.
MEMBER NEWS
Way, Ray, Shelton announces that Pamela Rice and Trenton Shepherd have become shareholders in the firm as of July 1, 2020.
Carl Jamison is a shareholder and chair of the executive committee for the Tuscaloosa firm JamisonMoneyFarmer, PC. He holds over 35 years of attest, tax and consulting services to manufacturing, construction, medical and real estate industry clients. Jamison is past chair and currently serves on the executive committee for the Business Council of Alabama and is past chair and current board member for the Tuscaloosa County Industrial Development Authority and Progress PAC.
Anglin Reichmann Armstrong has been named among the Best Accounting Firms to Work for, a project of Accounting Today and Best Companies Group. “Being recognized among the best places to work is an incredible honor,” said Managing Partner Gary Anglin. “It is especially meaningful after such a challenging tax season. I am proud of our employees and their ability to proactively serve our clients through all the legislative changes, relief measures and extended tax deadlines.” 216 McFarland Circle North • Tuscaloosa, AL 35406 205-345-5860 TA-NA5059783
WHAT’S HAPPENING OUT THERE Governor Kay Ivey has appointed Tony Cochran to represent a northern region board seat and Carl Jamison to represent the central region of the Alabama State Port Authority. Pursuant to the Alabama Constitution and pertinent statutes, the State Senate will need to consider and confirm all appointments during the legislature’s 2021 regular session. Ivey informed the appointees in respective letters, expressing her appreciation for their service and tasking them to be good stewards of public money. She noted that while also instilling trust in state government, the board membersO.K.would be making important PROOF O.K. BY:___________________________ WITH CORRECTIONS BY:________________________ decisions affecting the citizens of Alabama. PLEASE READ CAREFULLY • SUBMIT CORRECTIONS ONLINE
TA-NA5059783 (100%)
“I’ve appointed individuals that have consistently demonstrated the necessary knowledge and leadership skills critical to economic expansion in Alabama,” Ivey said in a statement. “The success of our port is fundamental to Alabama businesses and jobs, and I’m confident these folks will contribute to the great work being done under John Driscoll and the board.”
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“We have made a number of positive changes to our benefits and employee development programs over the last few years,” said Director of Staff Development, Wendy Tucker. “We strive to create an environment where employees enjoy coming to work and feel they are a valued member of the team. This award affirms that we are accomplishing that.”
BMSS Advisors & CPAs was recently named as a 2020 Accounting Today’s Best Accounting Firms to Work for. Accounting Today has partnered with Best Companies Group to identify companies that have excelled in creating quality workplaces for employees. This survey and awards program also designed to identify, recognize and honor the best employers in the accounting profession, benefiting its economy, workforce and businesses. The list is made up of 100 firms. For more information on Accounting Today’s Best Accounting Firms to Work for program, visit www. BestAccountingFirmsToWorkFor.com.
PUBLICATION: TA-TUSCALOOSA NEWS
Tony Cochran is the owner and managing partner of Albertville-based CK Business Solutions, PC, holding over 40 years in business management consulting and accounting experience. He is a CPA and a chartered global management accountant focused on business acquisitions and sales. Cochran holds leadership positions on numerous boards and commissions, including the Albertville Chamber of Commerce, Business Council of Alabama, the National Acoustic Neuroma Association and his recent appointment as chair of the Alabama Small Business Commission.
Wilkins Miller, an accounting and advisory firm with offices in Mobile and Fairhope, has been named one of the 2020 Best Accounting Firms to Work for by Accounting Today for the sixth year in a row. Out of only 100 firm selected, Wilkins Miller was one of two firms from the Mobile or Baldwin County region to make the list and one of five accounting firms in the state of Alabama. “Six years in a row is an accomplishment that we are tremendously proud of,” Wilkins Miller Managing Partner Allen Carroll said. “The firm strives to develop and motivate the very best people who are committed to helping our clients, team and community achieve.” “We are constantly innovating to find new ways to engage our team,” Wilkins Miller Partner Brandi Morgan said. “From our mentorship program to our continuing education resources, we look to provide opportunities for everyone at the firm to achieve their professional and personal goals.”
September/October
15
Ordinary People,
EXTRAORDINARY IMPACT As a volunteer-led organization, we need member ideas, expertise and leadership to perform a vast number of different tasks that help us help you be successful. But it’s not all about us. Your involvement can help you solve a problem at work, expand your expertise, provide-coworkers with key information, and build professional relationships and friendships along the way. Volunteer with ASCPA and the American Institute of CPAs (AICPA) to connect with other members in areas of interest you care about, have expertise in, or want to learn more about:
ASCPA Strategic Committees: • Audit • Education • Education Foundation • Ethics • Diversity and Inclusion • Governmental Accounting & Auditing Forum • Federal Taxation • Nomination • Political Action Committee • Peer Review • State Taxation
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ASCPA Connections
ASCPA Chapter Advisory Boards: •
Birmingham
•
East Alabama
•
Huntsville
•
Mobile
•
Montgomery
•
North Alabama
•
Northeast Alabama
•
South Central Alabama (Troy area)
•
Southeast Alabama
•
Tuscaloosa
•
Wheeler Basin
Other Ways to Get Involved: •
Become a CPE speaker.
•
Write for ASCPA Connections.
•
Join the Legislative Key Person Network.
•
Join one of the many AICPA committees that work on behalf of CPAs nationwide.
Most committees meet two to four times a year, and take on projects revolving around legislation and tax, career awareness, education, young professionals’ events, financial literacy, community service, and building a diverse and inclusive community within the profession.
Visit www.ascpa.org/volunteer to find out more and sign up now.
ASCPA Members Impacting CPAs Nationwide through the AICPA Since the AICPA began, member volunteers have contributed to the Institute and the profession. Volunteer service in one of the AICPA’s approximate 180 volunteer groups gives members the opportunity to influence and guide the profession’s direction as well as network with peers. Many volunteers participate on the AICPA’s approximate 180 volunteer groups. You can find out more about supporting the initiatives of the CPA profession as an AICPA volunteer on volunteer. aicpa.org.
The following ASCPA members have been appointed to an AICPA volunteer group for the committee year that began May 2020 and will end in May 2021. We are grateful for these excellent individuals who can speak on behalf of Alabama CPAs on a national platform.
MICHAEL L. BRAND
PAUL PERRY
STEPHEN GRICE
JOHN SHANK
CLYNT HART
TOMMIE SINGLETON
JON HEATH
DARRELL WATES
DON MURPHY
JIMMY WILLIAMSON
Designated AICPA Council Representative for One Year AICPA Board of Examiners AICPA Peer Review Board and Peer Review Board Education & Communication Task Force AICPA Auditing Standards Board and Elected AICPA Council Member AICPA Practice Advisory Group
AICPA Information Management and Technology Assurance Executive Committee Elected AICPA Council Member AICPA CITP Champion Program and CITP Credential Committee AICPA Professional Ethics Executive Committee (PEEC) and PEEC Enforcement Subcommittee AICPA Past Presidents and Chairmen of the Board
DARREN NEUSCHWANDER
AICPA Individual & Self-Employed Tax Technical Resource Panel September/October
17
MARK YOUR CALENDAR We want you to be able to safely network with CPAs and other professionals in your region. Here are a few ASCPA Chapter Events coming to you soon. Use the Event Code to find the latest details on times and locations about each event.
Septemeber
09.17.20 East Alabama Chapter Bankers & Attorneys Social Event Code: CHEA5
Moore’s Mill Club Pavilion – Auburn
09.18.2020 Birmingham Chapter A&A Update with Bruce Nunnally Event Code: CHBHM2 4.0 – 8.0 CPE Credits Zoom Meeting
09.23.2020 Mobile Chapter Tax Update with Lisa McKinney Event Code: CHMOB4 4.0 CPE Credits Zoom Meeting
october
10.15.2020 Mobile Chapter Post-Deadline Party
10.30.2020 Birmingham Chapter Tax Update with Bradley Law Event Code: CHBHM3 4.0 CPE Credits
Harbert Center – Birmingham
november
11.05.2020 East Alabama Chapter Luncheon with Mayor Fuller Event Code: CHEA6
Saugahatchee Country Club – Opelika
11.05.2020 Eastern Shore Professionals Night
11.16.2020 Downtown Rescue Mission Evening of Service Event Code: CHHSV1
Downtown Rescue Mission - Huntsville
11.17.2020 Tuscaloosa Chapter Luncheon with Mayor Maddox Event Code: CHTUS4
Levee Bar & Grille – Tuscaloosa
11.19.2020 Mobile Professionals Night Event Code: CHMOB7
Cedar Street Social Club – Mobile
Event Code: CHMOB6
Fairhope Brewing Company – Fairhope
11.06.2020 Montgomery Chapter Tailgate Event Code: CHMGM1
Mission House – Montgomery
Event Code: CHMOB5
Heroes Sports Bar & Grille – Mobile
Visit www.ascpa.org/CPE and select “Chapter Events” from Course Type for the latest information and to RSVP or register for any of these events.
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ASCPA Connections
PEER REVIEW
AICPA Urges Firms to Schedule Peer Reviews as Off-Site Deadline is Extended BY KEN TYSIAC
CPA, CGMA, AICPA vice president– Ethics and Practice Quality. “The ability to perform a review remotely without obtaining advance approval adds efficiency to the process.”
reviews. Reviewers’ firms also will be affected by the pandemic, so firms that wait too long might have difficulty scheduling their reviews in time to meet the new deadline.
In response to the coronavirus pandemic, the PRB previously had waived the requirement that reviewers and firms obtain prior approval to perform a system review off-site through Sept. 30 of this year. The PRB voted Thursday to extend that waiver.
However, Brackens said it’s still important for firms to work with their peer reviewers to determine whether a remote system review is advisable and to get the review on their calendars. In May, the PRB voted to grant six-month extensions for peer reviews, corrective actions, and implementation plans with original due dates between Jan. 1 and Sept. 30 of this year.
Brackens said approximately 45% of firms that received automatic due date extensions because of the pandemic have scheduled their reviews.
“Today’s action of the Peer Review Board demonstrates their continuing sensitivity to the struggles of firms and reviewers during these extraordinary times,” said Jim Brackens,
In the wake of that extension, the AICPA has been consistently urging firms to contact their peer reviewers as soon as possible to schedule a mutually convenient time for their
CPA firm peer reviews can continue to be held remotely without prior approval of the administering entity for system reviews commencing before June 30, 2021, as a result of a vote Thursday, August 20, 2020 by the AICPA Peer Review Board (PRB) that extended the off-site waiver.
“We need as many firms as possible to take this step and strongly encourage firms that have not scheduled their reviews yet to do so immediately,” he said. “Firms don’t need to meet their original due date but do need to schedule them now to avoid trouble down the road.” Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director. September/October
19
ZOEBELEIN ON TAX
Thoughts on Planning As 2020 Nears Its End by Tom Zoebelein & Clara Benitez
They say hindsight is “20/20.” Frankly, we are looking forward to 2020 being hindsight. The 2020 tax season is waning – with only the September, October, and November 15th extension deadlines remaining to close the most challenging tax season of our careers. Despite the overwhelming nature of the past few months – and the three deadlines still ahead of us – we find our minds already turning towards next year. Before we can put 2020 in the books and take a moment to relax, we have several tax planning items to consider for 2021.
Net Investment Income Tax and Additional Medicare Taxes Protective Claims
The US Supreme Court has granted certiorari to hear the case Texas v. United States, 945 F. 3d 355 (5th Cir. 2019) to determine the constitutionality of the Affordable Care Act. This case challenges the Net Investment Income Tax (IRC §1411) and the Additional Medicare Tax (IRC §3101(b)(2)). The case will be heard sometime in 2021. As of July 15, 2020, our firm filed a number of protective claims for refunds for clients who paid these taxes on their 2016 Forms 1040, and who originally filed by July 15, 2017. The deadline to file a protective claim is three years from the later of the return’s original filing date or due date, so some clients who extended their 2016 tax returns still have time. The protective claim only activates if the Supreme Court rules in favor of the plaintiff and does not keep the statute open for any other tax issues. Remember to discuss whether to file protective claims for 2017 (due April 15, 2021) in your year-end planning sessions with your effected clients.
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ASCPA Connections
PPP Loan Forgiveness
The jury is still out on loan forgiveness even though the SBA designated August 10, 2020, as the date for lenders to start receiving forgiveness applications. Lenders are still waiting for guidance. The best advice we can give is to wait a little longer before jumping into the PPP forgiveness process. Borrowers have ten months after the completion of the covered period to file for forgiveness. There are currently too many unanswered questions. For example, there has been a recent legislative push for automatic forgiveness of loans of $150,000 or less. We do know that the changes enacted June 5, 2020, expanded the covered period from eight to 24 weeks for all borrowers. Those who received loans before that date, however, can elect the eight-week covered period. Borrowers receiving PPP loans on or after June 5, 2020, will keep the same one percent interest rate and five-year term. Be sure that employee compensation remains at least 75% of 2019 levels and at least 60% of the PPP loan is used for payroll. Additionally, it is vital that employment levels be maintained for the covered period to avoid a forgiveness reduction. This may make electing eight weeks preferable if employment levels diminished after PPP funds were expended. There are exceptions for employee refusals to return and industries directly impacted by COVID-19 restrictions. There are other exceptions, like the restoration of the workforce by December 31, 2020, but those rules need further guidance. The expansion increased the compensation ceiling from $15,384 for the eight-week period to $46,154 for the 24-week period. Owners’ covered cash compensation is limited
$20,833, regardless of entity type. This is a single cap that includes all entities they own. C-corporation and S-corporation owner-employees may include employer retirement contributions to their employee retirement plans, capped at 2.5/12 of their 2019 amount. Two percent or greater S-corporation owner-employees cannot include health insurance payments in payroll costs, but C-corporation owner-employees may. The self-employed, including partners, cannot include payments for retirement or health insurance. A rule of thumb for pass-through owners is if it is included in either guaranteed payments or W-2 income it is limited to the $20,833 cap. LLC owner-employees must follow the rules which apply to how their business was organized for tax filing purposes for 2019. One more fact to ponder is that both the LLC member and the S-corporation shareholder will include in income their individual PPP payments from the entities they own, but self-employed Schedule C filers should not. After all, that would make Schedule C filers’ PPP loan taxable. The PPP forgiveness applications are filed on SBA Forms 3508 and 3508EZ. As the name implies the 3508EZ is easier, if your client can use it.
NOL Treatment
The CARES Act changed the NOL carryback for tax years 2018 - 2020. Forms 1139 (corporate) and 1045 (individuals) for 2018 had to be filed by June 30, 2020. The carryback is still available but must be filed via an amended return. For clients who decided not to make the carryback, I believe it necessary to amend 2018 to elect the loss carryforward (same for
2019, if not elected). Remember, the 2019 NOL carryback on Forms 1139 and 1045 must be filed by December 31, 2020, giving the IRS only 90 days to act on the refund claim. Also, the TCJA $500,000 and 80% of taxable income loss caps are removed for tax years 2018 - 2020 under the CARES Act. For clients facing a 2020 NOL, consider ways to increase the loss to take advantage of the five-year carryback in your 2020 planning.
Business Interest Limitation §163(j)
Section 163(j) limited business interest to 30% of “adjusted taxable income,” with excess interest expense carried forward. The CARES Act increased that limit to 50% for 2019 and 2020 for corporations. This is now extended to partnerships for 2020 as well. Both corporations and partnerships can elect to use their 2019 income to compute the 2020 limitation. This is an election, so also consider the implications in other areas, like the §199A deduction for non-corporate clients, as the disallowed interest is carried over. Realty companies (now including nursing homes) and farmers can elect out of this limitation and use the ADS depreciation.
Qualified Improvement Property Fifteen-Year Property
The TCJA attempted to move all improvements to the interior of buildings into one fifteen-year category called “qualified improvement property,” but instead inadvertently made it all 39-year property. This included leasehold improvements, restaurant property, retail property, and property that failed the fifteen-year category because the building was not three years old or it was owner-occupied.
The CARES Act retroactively (to 2018) made it all fifteen-year property and subject to bonus. We want to emphasize the importance of it including owner-occupied improvements. This is a huge change as it eliminates the related party rule that also prevented the use of the fifteen-year property under pre-TCJA interior improvements. Consider amending 2018 and 2019 to take advantage of this change. You will need to file a Form 3115 using DCN 244 for the change to fifteen-year property and DCN 245 if you want to elect out of bonus or elect ADS. Like the NOL treatment, tax returns already filed may need to be amended to take or elect out of bonus for this property for 2018 and or 2019. Remember it is allowed or allowable.
Amending 2018 and 2019 Tax Returns
There is a natural tendency not to amend tax returns, the thought being “why give the IRS a second look at our clients’ returns?” In the case of the major retroactive changes originated by the CARES Act, that adage loses some of its wisdom. Your client’s return, after all, will be one in a sea of expected amended returns. Do not give it a second thought and do not lose sight of the elections that the retroactive changes require to even stay in the same tax position as pre-CARES Act.
fer paying the employer portion of Social Security tax that is due from March – December 2020, until 2021 and 2022. Self-employed taxpayers may similarly delay paying their self-employment tax in. These are unavailable if the taxpayer had a PPP loan. •
Unemployment payments are taxable.
•
Student loan forbearance will result in an approximately 50% reduction in individual taxpayers’ student loan interest deductions for 2020.
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Unless the Alabama Legislature acts to make them nontaxable, the economic stimulus payments are taxable to Alabama.
•
Congress’ next round of COVID-19 relief might include a new round of PPP loans for those suffering a 50% loss of business.
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If there is a change in administration after the November election, consider possible tax rate increases, such that maximizing 2020 taxable income may be a wise move.
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Will the expenses paid with PPP money be deductible? The IRS has already said no, but Congress may say yes.
•
Revisit whether your clients now qualify as small businesses (allowing them to use the cash method of accounting, the completed contract method, etc.). For 2020, the test is $26 million average revenue.
Final Thoughts to Remember •
The CARES Act increased the income limits for charitable contributions made in 2020 for both individuals and corporations and added an “above-the-line” charitable deduction for individuals who do not itemize.
•
The CARES Act allows employers to de-
Here’s hoping for a better 2021. September/October
21
Managing Change in an Ever-Changing Profession BY MELISA GALASSO Disruption is everywhere! The rate of change we are currently experiencing has led us to describe our environment as VUCA (Volatile, Uncertain, Complex and Ambiguous). This change impacts all aspects of the CPA profession and is driven in large part by expanding use of technology by both auditors and preparers. Cloud computing and RPA are considered standards today and we do not have to look too far into the future to see machine learning and artificial intelligence become commonplace as well. Today, in lieu of asking staff to read thousands of lease agreements to adopt GASB 87 or Topic 842, firms are leveraging machine learning to have computers read the leases, identify the key terms and provide a summary. This leaves staff to focus on the important element – adopting the standard! Artificial intelligence, virtual reality, blockchain all at one point seemed very futuristic. Now, these are commonplace in business and industry. Virtual reality is driving improvements in training by providing realistic simulations to test skills in a virtual environment and blockchain is helping companies track the movement of assets in seconds. Preparers are being asked to change their focus from reporting about the past to focus on assisting in decisions about the future. Instead of reporting on past events, finance executives will be asked to leverage data to determine how businesses can achieve certain outcomes. A McKinsey study1 evaluated various aspects of the accounting profession and found that 42% of finance activities today could be fully automated with technology already in existence, while another 19% could be mostly automated. While, accountants won’t be replaced by technology, many of the tasks today will be automated leaving CPAs to focus on higher-value tasks. The skills of the future are skills that computers can’t perform. Emotional intelligence, creativity, and people management are squarely in the human corner. Therefore, CPAs need to focus not only on technical skills but also on developing their people skills. The CPA exam is also evolving to incorporate technology and higher-order thinking skills. Rote memorization is no longer seen as a skillset of choice. Memorizing dates and definitions are easily searched and thus no longer carry the same value. Instead, application and analysis are needed. We ask more of staff today because computers have 1
https://www.mckinsey.com/business-functions/ strategy-and-corporate-finance/our-insights/botsalgorithms-and-the-future-of-the-finance-function
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ASCPA Connections
replaced the mundane work we asked of staff decades ago. As change continues to accelerate, firms and organizations need to develop methodologies to not only manage change but also to enable change. Change must be seen as an opportunity to grow. However, we know some CPAs do not embrace change and instead try to find ways to continue to do things the ways that have worked in the past to minimize disruption. Firms and organizations need to embrace strong change management programs to bring them on board. Change requires a vision of the future that compels people to come along for the ride. Moreover, innovative solutions come from environments where people feel safe and are willing to fail (but fail fast). Communication and leadership skills can coach people through the change and create buy-in. Without a strong change management program, employees may feel like a given change is simply the flavor of the month and never fully buy-in. CPAs need to embrace this change or risk becoming like Blockbuster, Kodak, and other industries that held on to the past. Let’s disrupt our profession, before someone else does! Melisa F. Galasso is the founder and CEO of Galasso Learning Solutions LLC. A CPA with over 15 years of experience in the accounting profession. Melisa designs and facilitates several self-study and live-courses for the ASCPA in advanced technical accounting and auditing topics, including not for profit and governmental accounting. Search for Galasso on www.ascpa. org/CPE to find her courses.
ASCPA’S MANAGING CHANGE IN AN EVER- CHANGING PROFESSION Leader: Melisa Galasso Course Code: MCCP-MG Self-Study Available Until 4/29/21 2.0 hours of A&A
CPE
ETHICS MATTERS The Alabama State Board of Accountancy mandated October 1, 2019 that practitioners complete two-hours of ethics continuing professional education. Throughout the years, the NASBA Center for the Public Trust (CPT) has provided ethics trainings, both live and online. With the ASBPA’s ruling, the CPT set out to develop a course to support the Alabama Society of CPAs (ASCPA) and its practitioners. The CPT developed an online ethics course for the ASCPA, which is delivered through a CPT learning management system (LMS). The ASCPA launched the course along with other offerings to their members in May. By partnering with the CPT and leveraging its LMS, the ASCPA has an efficient and effective means of collecting course fees, administering the content, and monitoring course completions through reporting functionality. “The Alabama Society of CPAs is pleased to partner with NASBA CPT in offering our members a premier ethics course,” says Jeannine Birmingham, President and CEO of the ASCPA. “The two-hour learning opportunity is filled with important information delivered in a fun, fast-paced, online platform.”
ASCPA’S ETHICS Leader: Alfonzo Alexander, MBA, CPC, Chief Ethics & Diversity Officer of NASBA Course Code: AAAE 2.0 hours of Ethics Visit www.ascpa.org/ethics to register for access to this course. After registering through the ASCPA, you will complete and pay for registration via email notification from NASBA.
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September/October
23
GENERAL CPE SCHEDULE 027 Peer Review Update Course Friday, September 18, 2020 8:00 AM-11:30AM Live Stream AA: 4 089 Surgent’s Individual Income Tax Update Monday, September 21, 2020 12:30PM-4:00PM Live Stream TX: 4 094 Developing Your Digital Mindset Tuesday, September 22, 2020 8:00 AM-11:30AM Live Stream MG: 4 096 Surgent’s Individual Tax Planning Ideas Tuesday, September 22, 2020 8:00 AM-11:30AM Live Stream TX: 4 103 Conquering the New Leasing Standard Tuesday, September 22, 2020 12:30PM-4:00 PM Live Stream AA: 4 083 ASCPA’s Community Banking Update Monday, September 21, 2020 8:00 AM-3:30 PM Live Stream AA: 8 051 Sirote’s Hottest Tax Topics Monday, September 21, 2020 12:30PM-4:00 PM Live Stream TX: 4
087 Section 199A: Schedule K-1 Reporting for Relevant Passthrough Entities Tuesday, September 22, 2020 12:30PM-4:00 PM Live Stream TX: 4 119 Revenue Recognition for Nonprofit Organizations Wednesday, September 23, 2020 12:30PM-4:00 PM Live Stream AA: 4 120 Not For Profit Accounting Update Thursday, September 24, 2020 12:30PM-4:00 PM Live Stream AA: 4 108 K2’s Best Word, Outlook, and PowerPoint Features Wednesday, September 23, 2020 8:00 AM-11:30AM Live Stream Other: 4 115 Real World Ethics Update for CPASs in Public Practice Wednesday, September 23, 2020 10:00AM-11:40AM Live Stream Ethics: 2 113 Required Minimum Distributions: Compliance and Planning Thursday, September 24, 2020 8:00 AM-11:30AM Live Stream TX: 4
124 Accounting and Auditing for Tax People Who Absolutely Detest Accounting and Auditing Thursday, September 24, 2020 8:00 AM-11:30AM Live Stream AA: 4 123 K2’s Remote Access for Small Businesses Thursday, September 24, 2020 8:00 AM-11:30AM Live Stream Other: 4 127 Succession Planning for the Small Business Owner: Finding the Exit Ramp Thursday, September 24, 2020 12:30PM-4:00PM Live Stream TX: 4 130 K2’s Implementing Internal Controls in QuickBooks Environments Thursday, September 24, 2020 12:30PM-4:00 PM Live Stream AA: 4
088 Controller’s Update: Today’s Latest Trends Monday, September 21, 2020 8:00 AM-11:30AM Live Stream Finance: 4 095 Conquering the New Revenue Standard Tuesday, September 22, 2020 8:00 AM-11:30AM Live Stream AA: 4 138 Evaluating Fraud Risk in a Financial Statement Audit Monday, September 28, 2020 8:00 AM-11:30AM Live Stream AA: 4 143 Auditing Deficiencies in Peer Reviews: Focus on Engagement Quality Monday, September 28, 2020 12:30PM-4:00 PM Live Stream AA: 4
145 Common Issues Practitioners Have Experience with the revenue Standard 131 2020 Preparation, Monday, September 28, Compilation & Review (SSARS) 2020 Update for the Local Firm 8:00 AM-3:30PM Thursday, September 24, Live Stream 2020 AA: 8 12:30PM-4:00 PM 144 Select Estate and Life Live Stream Planning Issues for the MiddleAA: 4 Income Client 085 S Corporation Taxation: Wednesday, September 23, Advanced Issues 2020 Monday, September 21, 8:00AM-11:30AM 2020 Live Stream 8:00 AM-11:30AM TX: 4 Live Stream TX: 4
GO TO WWW.ASCPA.ORG FOR NEW CLASSES AND MOST CURRENT INFORMATION. 24
ASCPA Connections
150 Conquering the New Leasing Standard Tuesday, September 29, 2020 8:00AM-3:30PM Live Stream AA: 8 148 Update on Recent AICPA Standard Setting: Staying Current in a Changing Environment Tuesday, September 29, 2020 8:00 AM-11:30AM Live Stream AA: 4 154 Key Partnership and S Corporation Tax Planning Strategies Wednesday, September 23, 2020 12:30PM-4:00 PM Live Stream TX: 4 162 Become an AICPA Peer Review Team or Review Captain Case Study Application Thursday, September 10, 2020 8:00AM-3:30PM Live Stream AA: 8
158 Blockchain - The Basics of What Businesses Need to Know Monday, September 21, 2020 12:30PM-4:00 PM Live Stream Other: 4 170 The Best Individual Income Tax Update Course Friday, November 20, 2020 8:00AM-3:30PM Live Stream TX : 8 171 The Best Federal Tax Update Course Friday, October 30, 2020 8:00AM-3:30PM Live Stream TX: 8 172 The Best Federal Tax Update Tuesday, December 29, 2020 8:00AM-3:30PM Live Stream TX: 8 173 Annual Accounting and Auditing Update Friday, November 20, 2020 8:00AM-3:30PM-Live Stream AA: 8
165 If You Only Knew What Microsoft Word Could Do Friday, October 16, 2020 9:00AM-11:00AM Live Stream MG: 2
167 Shortcuts Excel Users Love Friday, December 18, 2020 9:00AM-11:00AM Live Stream Other: 2
175 Compilations, Reviews, & Preparations: Engagement Performance & Annual Update Friday, December 04, 2020 8:00AM 3:30PM-Live Stream AA: 8
174 Accounting, Audit, and Attest Update for Practitioners with Small-Business Clients Thursday, December 17, 2020 8:00AM 3:30PM-Live Stream AA: 8
102 Change the Way You Work: Success as a Virtual CFO Tuesday, September 22, 2020 12:30PM-4:00 PM Live Stream MG: 4
153 Annual FASB Update and Review Tuesday, September 29, 2020 12:30PM-4:00 PM Live Stream AA: 4
114 Real World Ethics Update for CPAs in Industry Wednesday, September 23, 2020 8:00 AM-9:40 AM Live Stream Ethics: 2
161 The Best Federal Tax Update Course by Surgent Thursday, January 07, 2021 8:00 AM-3:30 PM Live Stream TX: 8
116 K2’s Excel Charting and Visualizations Wednesday, September 23, 2020 12:30PM-4:00 PM Live Stream Other: 4 128 Governmental Accounting and Auditing Update Thursday, September 24, 2020 8:00 AM-11:30AM Live Stream AA: 4 PROF2 ASCPA’s Professional Issues: What Every CPA Needs to Know Wednesday, September 23, 2020 11:00AM-12:30PM Live Stream Other: 1.8
163 Getting the Most from Microsoft Outlook Thursday, November 19, 2020 9:00AM-11:00AM Live Stream Other: 2 166 Internal Control Creation and Design Concepts Thursday, September 17, 2020 9:00AM 11:00AM Live Stream AA: 2 169 The Best S Corporation, Limited Liabi lity, & Partnership Update Friday, November 13, 2020 8:00AM-3:30PM Live Stream TX: 8
VAM-101 ASCPA’s Virtual Annual CPE Meeting Wednesday, September 30, 2020 8:00AM-12:30PM Live Stream AA: 1.5; Other: 2.5
GO TO WWW.ASCPA.ORG FOR NEW CLASSES AND MOST CURRENT INFORMATION. September/October
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SELF-STUDY CPE SCHEDULE BBB-LS ASCPA’s Small Business Workout & Bankruptcy Strategies 8:00AM-3:30PM Self Study | TX: 1
AAAE ASCPA’s Ethics 8:00AM-3:30PM Self Study | Ethics: 2
ECPP-JM Ethics For Public Practice 8:00AM-3:30PM Self Study | Ethics: 2
AAGE-MG ASCPA’s What’s Changing in A&A for Governmental Entities 8:00AM-3:30PM Self Study | AA: 4
EUPC-KD ASCPA’s Economic Update, Post COVID-19 8:00AM-3:30PM Self Study | Other: 1
BUNDLE20 ASCPA’s Build Your Own 20-Hour Bundle 6:30AM-12:00PM Self Study | Other: 20
PDDA Preparing for the DataDriven Age 8:00AM-3:30PM Self Study | Other: 0.2
ANAR-JM ASCPA’s SSAE 19 What a Relief for Agreed-Upon Procedures Engagements 8:00AM-3:30PM Self Study | AA: 2
IAT-JM Impairment Accounting Toolkit for the Local Practitioner 8:00AM-3:30PM Self Study | Other: 4 ASEA-JM ASCPA’s The Corona Virus Accounting ToolKit for the Local Practitioner 8:00AM-3:30PM Self Study | AA: 4 AAAU-JM ASCPA’s A&A Update For the Local Firm 8:00AM-3:30PM Self Study | AA: 4 BCNI08 ASCPA’s Business Combinations & Non- Controlling Interests 8:30AM-12:00PM Self Study | AA: 4
ASUT-BE ASCPA’s Sales and Use Tax Highlights for AL CPA’s 8:00AM-3:30PM Self Study | TX: 2 AUGN-MG ASCPA’s Annual Update for Governmental and Notfor-Profits 8:00AM-3:30PM Self Study | AA: 4 BUNDLE40 ASCPA’s Build Your Own 40-Hour Bundle 6:30AM-12:00PM Self Study | Other: 40
CHAA-MB ASCPA’s COVID-19 Impact on Your Accounting and Auditing Practice 8:00AM-3:30PM Self Study | AA: 1 CHCOV-SS COVID-19 Economic Stimulus Webinar with Karen Miller & Lisa McKinney 12:00PM-2:00PM Self Study | TX: 2 FVA09 ASCPA’s Fair Value Accounting 2020 8:30AM-12:00PM Self Study | AA: 4 GAU-MG ASCPA’s Governmental Auditing Update: Yellow Book & Uniform Guidance What You Need to Know 8:00AM-3:30PM Self Study | AA: 4 ICBA-KM ASCPA’s Refund Opportunities for Indi viduals & Businesses CARES Act 8:00AM-3:30PM Self Study | TX: 1 MCCP-MG ASCPA’S Managing Change in an Ever Changing Profession 8:00AM-3:30PM Self Study | AA: 2
Financial A&A Conference WWW.ASCPA.ORG/FAAC
Annual CPE Meeting WWW.ASCPA.ORG/AM2020
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ASCPA Connections
PEAAE-OL ASCPA’s Understanding The Independence Guidelines of the Accounting Profession 8:30AM-12:00PM Self Study | AA: 4 SSARS-JM ASCPA’s SSARS Update (Preparation, Compilation and Review) 8:00AM-3:30PM Self Study | AA: 4 TCJA-KM ASCPA’s State Income Tax Considerations- CARES Act & TCJA 8:00AM-3:30PM Self Study | TX: 1 WGASB-MG ASCPA’s What’s Going on at the GASB 8:00AM-3:30PM Self Study | AA: 4 AEIS-JM ASCPA’s Ethics for CPAs in Industry or Searching 8:00AM-3:30PM Self Study | Ethics: 2 ASU-OL ASCPA’s Auditing Standards Update 8:30AM-12:00PM Self Study | AA: 4 NFPAA-MG ASCPA’s Not-forProfit Accounting Update 8:00AM-3:30PM Self Study | AA: 4
FRIDAY, SEPTEMBER 25, 2020 8 A&A CPE CREDITS NATIONALLY RECOGNIZED A&A EXPERTS THE LATEST ASCPA INITIATIVES ENJOY LUNCH ON US VIA UBER EATS
WEDNESDAY, SEPTEMBER 30 1.5 A&A + 2.5 OTHER CPE CREDITS AICPA PROFESSIONAL ISSUES UPDATE CYBERSECURITY UPDATE ADOR + LEGISLATIVE INSIGHTS A&A WITH JIM MARTIN
Save + Customize + Track your 2020 CPE with the ASCPA Self-Study Bundle. Visit ascpa.org/CPE to choose & save today.
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Sell By Year End! Delivering Results - One Practice At a time Lori Newcomer, CPA & Tim Price, CPA
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