AZ CPA Feb. 2015 by ASCPA

CPA February 2015

The Arizona Society of Certified Public Accountants

Managing Personal Devices Without Stifling Creativity Disability in the Workplace 10 Things You Can Do to Secure Your Information www.ascpa.com

Committed to a

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CPA FEBRUARY 2015

Volume 31 Number 2

Embrace the Elephant in the Room — Disability in the Workplace

As baby boomers age, disabilities are becoming more prevalent — through Cosmo’s first-hand experience, discover ways to address the “elephant in the room” now. by Vito A. Cosmo Jr., CPA, CGMA

The Top 10 Things You Can Do to Secure Your Company and Client Information

Features How to Manage the Use of Personal Devices Without Stifling Productivity

The explosion of individually owned devices connected to company networks can be a cause for concern for employers. by Thomas G. Stephens, Jr., CPA, CITP, CGMA

17 With the increase in security breaches, now more than ever, it makes sense to review your company and client information security. by Paul J. Beckert, CPA

Columns & Departments 6

Chair’s Message by Anita Baker, CPA

Focus on Members

A Dash of SALT by James Busby, Jr., CPA

22 Classifieds Arizona Society of Certified Public Accountants 4801 E. Washington St., Suite 225-B Phoenix, Arizona 85034-2021 www.ascpa.com

4 AZ CPA y FEBRUARY 2015

In the Black ... Adventures in Accounting

CPA

The Arizona Society of Certified Public Accountants

President & CEO

Cindie Hubiak

Editor

Patricia Gannon

Copy & Advertising Deadline The first of the month one month prior to publication date. Board of Directors Chair Chair-Elect Secretary/Treasurer Directors

Anita Baker Rob Dubberly Greg Nelson Gary Fleming Randy Fletchall Diane Groover Mike Holt Bill Judge Adam Miller Molly Montgomery Jennifer Nordstrom Vanesa Romero Sandra Torre Jared W. Van Arsdale Craig Van Slyke

Immediate Past Chair Karen Abraham AICPA Council Members Karen Abraham Armando Roman Chapter Presidents Southern Chapter Northern Chapter Southwest Chapter North-Central Chapter

Flo Zenblu Kay McConagha Jayne Wright Richard Joliet

2015 Arizona Tax Guide

AZ CPA is published by the Arizona Society of Certified Public

Accountants (ASCPA) to provide information, news and trends in the profession of accounting. It is distributed 10 times a year as a regular service to members of the Society. The ASCPA, its members, board of directors and administrative staff assume no responsibility for advertisements herein. The ASCPA and the above people also assume no liability for business decisions made by readers in reference to statements and/or claims in advertisements within this publication. Opinions expressed by correspondents and contributors are not necessarily those of the ASCPA.

Arizona Society of CPAs 4801 E. Washington St., Suite 225-B Phoenix, AZ 85034-2021 Telephone (602) 252-4144 AZ Toll-Free (888) 237-0700 Fax (602) 252-1511

Order the only comprehensive guide on Arizona taxes Authors: Ira Feldman, Pat Derdenger, Steve Rodis and Ed Zollars New in the 2015 Arizona Tax Guide:

• Arizona sales tax simplification changes coming January 1, 2015 • Discussion of the revision of ADOR’s position on calculation of net operating loss carryforwards for taxpayers that move into Arizona

Order and learn more about the guides at www.ascpa.com

www.ascpa.com FEBRUARY 2015 y AZ CPA

Chair’s Message

by Anita Baker, CPA

The Changing Rules of Engagement When I look back over the last 30 years, I realize how many things have changed in the profession. Technology has certainly made it easier to keep up with these changes. I remember when we used to have to research information using the extensive library in our office that housed the accounting and auditing standards, tax regulations and other necessary resources. Now it is so convenient to have the literature at our fingertips wherever and whenever we need to access it. Of course it requires some training and diligence to understand and keep up on the changes in an online environment. I asked my son who is a senior at ASU if he ever goes to the library now that he has all of the information available on his laptop. He said that they still use the library to “study” but they very seldom actually use the books. When I mentioned microfiche, he asked “what’s that?” So, for the younger generation, here is the definition: mi•cro•fiche — noun: a sheet of film that has very small photographs of the pages of a newspaper, magazine, etc., which are viewed by using a special machine: a sheet of microfilm In December, I attended the AICPA Technical Standards Subcommittee (TSS) meeting in Durham, North Carolina. As part of our general meeting we had an update on some of the changes happening in the profession. It is very important that we understand these changes and adapt our policies and procedures to ensure that we comply with the changes and do not end up on the next agenda of the TSS. Fortunately, you can access the information online! The Professional Ethics Executive Committee (PEEC) adopted a revised Code of Professional Conduct (the code) that was effective December 15, 2014. The Conceptual Framework for Members in Business and the Conceptual Framework for Members in Public Practice are effective December 15, 2015. The revised Code and conceptual frameworks may be implemented early. The online version is available at http:// pub.aicpa.org/codeofconduct/Ethics.aspx#. The AICPA membership adopted the code to provide guidance and rules to all members in the performance of their professional responsibilities. The

6 AZ CPA y FEBRUARY 2015

code consists of principles and rules as well as interpretations and other guidance. The principles provide the framework for the rules that govern the performance of their professional responsibilities. The AICPA bylaws require that members adhere to the rules of the code. Compliance with the rules is dependent primarily on members’ understanding and voluntary actions; secondarily on reinforcement by peers and public opinion; and ultimately on disciplinary proceedings, when necessary, against members who fail to comply with the rules. The AICPA Ethics Codification was adopted in June 2014 to be intuitively organized, improve research capability, enhance clarity, retain the substance of existing standards and highlight nonauthoritative guidance. Here a few highlights of the recent changes to the code: Revised Interpretation 102-2: Conflicts of Interest (COI) for Members in Public Practice was effective September 30, 2014 and requires that you take reasonable steps to identify a COI. It also added

a description of a COI and additional examples. Basically, this requires you to identify, evaluate, disclose and obtain consent when you have a COI. The Client Affiliates rule requires you to apply the independence rules to any affiliate of a financial statement attest client. It defines terms in the rule and is generally effective for engagements covering periods beginning on or after January 1, 2014. For non-attest services such as financial statement preparation, cash to accrual conversions and reconciliations, the member may not assume management responsibilities for the client. The client must agree to certain conditions and the specific terms must be established and documented in writing. For example, they must accept responsibility for designing, implementing and maintaining internal control and for performing ongoing evaluations of the client’s internal control as part of its monitoring activities. This is effective for engagements covering periods beginning on or after December 15, 2014. I encourage you to review the provisions that are applicable to you whether in public practice, industry or government so that you can ensure you comply with the code. Happy reading! AZ CPA

Focus on Members CBIZ, LLC & Mayer Hoffman McCann P.C., recently hired the following individuals: Anne Davison, CPA, as tax manager, and Jianjie Li, as tax associate, and Michael Milliken, Karan Pahwa, and Max Sharp as audit associates. L i n d s e y S a u l , C PA , j o i n e d CliftonLarsonAllen, LLP as a senior associate in tax. Kathryn Baker, CPA, VP and treasurer of Blue Cross Blue Shield of Arizona, received the Desert Botanical Garden’s Spirit of Philanthropy Award. (Baker had previously served as the Garden’s Board of Trustees president from June, 2011 to May, 2013.) Gregg Leach, CPA, CFO of Able Engineering, has been named a “Superstar” by The Institute for HealthCare Consumerism, a national organization focused on health and benefit management. Leach received the 2014 award for the most innovative benefit plan design and implementation. Stacy Thompson, CPA, has been promoted to consulting manager, and Matt Anson was promoted to senior accountant at Keegan, Linscott & Kenon, PC.

AICPA Committee Members The following ASCPA members were appointed to American Institute of CPAs (AICPA) Committees for 2014-2015: Corey Arvizu

Definition of Client Task Force (Chair)

Nominations Committee

The Practice Monitoring Task Force for Single Audits

Ken Askelson Business Environment & Concepts (BEC)

Subcommittee

Journal of Accountancy Editorial Advisers

Anita Baker

Employee Benefits Plans Audit Quality Center Executive Committee

Technical Standards Subcommittee

David Baldwin

Individual & Self-Employed Tax Technical

Resource Panel

Jeffery Bridgens

State & Local Government Expert Panel

Nicholas Daddario

Hospitality Revenue Recognition Task Force

Michael Daggett

Board of Examiners (BOE)

Michael Fahlman

FLS Damages Task Force (Chair)

Forensic and Litigation Services Committee

Randy Fletchall

AICPA Foundation Board of Trustees (President)

Suzanne Heidenreich PRB Oversight Task Force

Technical Reviewers Advisory Task Force

William Heimerdinger Health Care Expert Panel

Healthcare Revenue Recognition Task Force

Benjamin Field, CPA, and Lawrence Field, CPA, have formed the firm of Benjamin H. Field, CPA, PC.

Craig Isakson

Airline Revenue Recognition Task Force

Mark Landy

Technical Standards Subcommittee

Lela Lawless

Business Valuations Committee

Daniel L. Hulsizer, CPA, JD, was recently promoted to partner of the firm Warner Angle Hallam Jackson & Formanek PLC.

Sharon Lechter Financial Literacy Commission

Dr. Rufus Glasper, CPA,Chancellor of Maricopa Community Colleges, received the Dwight Patterson Lifetime Achievement Award from East Valley Partnership.

Armando Roman

Financial Literacy Commission

Carolyn Sechler

Journal of Accountancy Editorial Advisers

Thomas Selling

Financial Accounting & Reporting (FAR)

Raelynn Mackenzie

Joint Trial Board

Ryan Patterson

Government Performance and

Accountability Committee (GPAC)

Subcommittee

Jacob Wilkinson

Partnership Taxation Technical Resource Panel

Kevin Yeanoplos

Journal of Accountancy Editorial Advisers

FEBRUARY 2015 y AZ CPA

Enjoy the Convenience of Webcasts Earn CPE from the comfort of your home or office with the ASCPA’s live interactive webcasts. Webcasts allow you to see the speaker live on your computer screen and follow along with the presentation, as if you were in the classroom. You can type in your questions or comments, and they will be relayed to the speaker throughout the program, to allow interaction.

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A Dash of SALT

Fundamentals of Nexus in Arizona: Income Tax Nexus This month’s state and local tax (SALT) column introduces an additional hurdle that state and local governments must overcome, beyond the U.S. Constitutional limitations discussed in last month’s column, before they may impose taxes on or measured by net income from interstate commerce, and the Arizona Department of Revenue’s (ADOR’s) interpretation of this federal law. Last month’s column introduced two important limitations on states’ ability to impose taxes on proceeds from interstate and foreign commerce -- the “Due Process” clause, and the “Commerce Clause.” Our founding fathers included these limitations in the U.S. Constitution, and they apply to all types of taxes. In 1959, Congress exercised its prerogative to regulate interstate commerce by enacting Public Law 86-272, which provides an additional hurdle for states and local governments to overcome before they may impose taxes on or measured by net income from interstate commerce.

The Scope of Public Law 86-272 Public Law 86-272 generally prohibits states and local governments from imposing income taxes on taxpayers whose only in-state activity is the mere “solicitation of orders” for sales of tangible personal property. For Public Law 86-272 protection to apply, the orders must be sent outside the state for approval or rejection and, if approved, the product must be shipped or delivered from a point outside the state. Independent contractors may even maintain an office in a state and actually sell tangible personal property, rather than just solicit orders to sell, for a

principal they represent and not exceed the protection provided by Public Law 86-272. However, they must represent more than one principal and hold themselves out as such in the regular course of their business activities in order to qualify as an independent contractor.

Limitations on Public Law 86-272 Although the protections afforded by the Due Process Clause and the Commerce Clause apply to all types of taxes, the additional protections afforded by Public Law 86-272 only apply to taxes imposed on or measured by net income. So, for example, pursuant to Public Law 86-272, a taxpayer may not be required to file an income tax return in a particular state, but the state might be able to force the taxpayer to collect and remit sales tax on the transactions that generated income in that state for the taxpayer. Likewise, Public Law 86-272 only protects income derived from sales of tangible personal property. Thus, for instance, income from sales of services is not protected by Public Law 86-272. And, Public Law 86-272 does not protect corporations that are incorporated in, or individuals who are domiciled in, a particular state from any tax imposed by that state.

ADOR’s Guidelines Regarding Public Law 86-272

Like the taxing authorities in many other states, ADOR has interpreted Public Law 86-272 and issued guidance regarding specific activities that it believes are protected and unprotected by Public Law 86-272. ADOR’s guidance is contained in Arizona Corporate Tax Ruling CTR 99-5, which is available on their website. The ruling provides, for example, that some of the in-state activities that ADOR agrees will not cause the loss of protection for otherwise protected sales include: 1. Soliciting orders for sales by any type of advertising. 2. Soliciting of orders by an in-state resident employee or representative of the company, so long as such person does not maintain or use any office or other place of business in the state other than an “in-home” office as described . . . above. 3. Carrying samples and promotional materials only for display or distribution without charge or other consideration. 4. Furnishing or setting up display racks and advising customers on the display of the company’s products without charge or other consideration.

FEBRUARY 2015 y AZ CPA

Governmental Accounting Conference Feb. 13, 2015 Arizona Biltmore

General Sessions include: 2014: The Year That the News Coverage of Government Ethical Issues Exceeded the Coverage of Business Ethical Issues— Marianne Jennings, emeritus professor W.P. Carey School of Business at ASU GASB Update—David Bean, Governmental Accounting Standards Board GASB’s Revised Pension Standards: Effect on Arizona Governments in 2015—Donna Miller, Arizona Office of the Auditor General Carlo Ponzi or Bernard Madoff—Who Was the Bigger Villain?—David Cotton, Cotton & Company, LLP Breakout Sessions include: • GASB below the Surface • Preparing for the Audit – Auditor and Auditee Insights • Was it Fraud? If so, Who Did It? • The Psychology of Fraud • What Governmental Employers Participating in Arizona’s Pension Plans Need for 2015 • Single Audit Improvements and Efficiencies

5. Providing automobiles to sales personnel for their use in conducting protected activities. 6. Passing orders, inquiries, and complaints on to the home office. Practice Tip! – Savvy CPAs help their clients distinguish between the types of activities that may create nexus for sales tax purposes yet are protected by Public Law 86-272. That way, their clients do not have to file income tax returns in more states than they need to. AZ CPA James G. Busby, Jr. is a state and local tax attorney and CPA at The Cavanagh Law Firm. Busby previously worked in the SALT departments at Arthur Andersen and Deloitte & Touche. Before entering private practice, Busby was in charge of all transaction privilege (sales) tax audits at the Arizona Department of Revenue. A Dash of SALT ™ is provided for educational and informational purposes only and does not constitute legal counseling or other professional services. If you have any questions, please contact the author. He can be reached at (602) 322-4146 or JBusby@CavanaghLaw.com.

Learn more and register by going to www.ascpa.com, select CPE and then conferences.

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Sensitive company data can be at RISK in a Bring Your Own Device environment.

How to Manage the Use of Personal Devices Without Stifling Productivity by Thomas G. Stephens, Jr., CPA, CITP, CGMA

Over the past five years, the rapidly expanding universe of personal technology devices, such as smartphones and tablets, has had an ancillary effect â&#x20AC;&#x201C; an explosion of individually owned devices connected to corporate networks. In this phenomenon, known as Bring Your Own Device (BYOD), well-meaning end users connect their personally owned smartphones, tablets and other devices to corporate networks so that they can access email and other data and services while away from the office. In the best of all possible worlds, BYOD facilitates increased productivity and allows team members greater flexibility and options to work while away from the office. On the other hand, because team members rarely activate adequate security FEBRUARY 2015 y AZ CPA

measures on their individually owned devices, sensitive corporate data can be at risk in a BYOD environment. In this article, we discuss how you can manage BYOD and reduce the related risks, without stifling productivity. Educate Your Team on the Risks

Above all else, educate your team about the absolute business requirement for securing sensitive data, including that accessed through BYOD. Every team member should understand the risks associated with BYOD. Once they understand the risks, most team members will attempt to make all reasonable efforts to mitigate those risks. Perhaps the two biggest risks that exist with BYOD are the following. Compromised sensitive data. If a team member’s device becomes lost or stolen and it is not secured properly, then sensitive data potentially becomes compromised. Further, under security breach notification laws in place in almost all states, if such a breach occurs, your organization likely must notify all parties that are potentially impacted by the breach. Loss of control of organizational data. If a team member using a personal device to access corporate networks leaves the organization, then all data on that team member’s device falls out of control of the organization. Accordingly, all parties should be aware of this risk and you should implement measures to regain control of corporate data upon the departure of a team member. In fact, and as indicated in the next section, you should implement policies that clearly spell out what each team member’s responsibilities are in a BYOD scenario. Reducing BYOD Risk Starts with a Policy

Effectively managing BYOD begins with creating a BYOD policy and requiring all team members to agree to the policy as a condition of participating in BYOD. Team members who

12 AZ CPA y FEBRUARY 2015

Above all else, educate your team about the absolute business requirement for securing sensitive data, including that accessed through

BYOD.

choose not to consent to the BYOD policy should be expressly prohibited from connecting any personal device to the corporate network. The following five items are among those to include in the BYOD policy. • Specify what devices are permitted to connect to the corporate network. Include specific makes and models of devices that are expressly allowed to connect. You should not allow any device not in this approved device list to connect to corporate networks, even including email. • Identify who owns the data stored on the device and what happens to that data in the event a participating team member leaves the employment of the organization. • Indicate the list of apps permitted on the devices. In the absence of this step, participating team members could download apps that might potentially be harmful and expose or compromise sensitive data.

• Stipulate what amount of reimbursement, if any, will be provided to team members for business use of the employee-owned device. • Indicate what specific security measures team members MUST implement on their devices as a condition of participating in BYOD. Don’t Forget to Address BYOC

In addition to BYOD, you should address a related risk, that of Bring Your Own Cloud (BYOC.) With BYOC, team members store corporate data in their personal cloud-based storage facilities, such as OneDrive, Dropbox, Google Drive, and Box. In the absence of a policy prohibiting using personal cloud-based storage tools, sensitive data can leak from your organization and you may no longer be able to control, secure, manage, backup, or recover this critical information. Again, team members generally do not have bad intentions when storing

data in their personal cloud services. Rather, cloud-based storage can be a very convenient way of sharing data across multiple devices. Further, it can facilitate collaboration between team members, leading to even higher levels of productivity. But to mitigate risk, data should not be stored in personal cloud services. Instead, subscribe to businessoriented services such as OneDrive for Business, Dropbox for Business, or Box for Business. Additionally, tools such as ShareFile represent excellent options for corporate-level, cloud-based storage and collaboration. Consider Implementing Mobile Device Management Software

To manage the risks of BYOD more effectively and efficiently, consider implementing mobile device management (MDM) software. With MDM tools, you can create security policies and “push” these policies onto mobile devices used by your team members.

Examples of items you can include in these policies are: • Password length and complexity, • Password age, • What features, such as a camera, can be accessed on a mobile device, and • Can the device connect to WiFi networks and, if so, which ones. One example of an MDM tool is Apple’s iPhone Configuration Utility,. Other examples of MDM tools include AirWatch, MobileIron, and Good Pro. Each of these mobile device management tools provides you with the capability to create, distribute, and enforce necessary security policies on mobile devices. With such policies in place, you can substantially reduce the risks associated with BYOD, while simultaneously minimizing the amount of time you spend in the process. Properly managed and controlled, BYOD represents a potential win-win for all involved. Anytime access to data,

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better collaboration, improved intra and inter-organizational communications can all stem from an appropriatelyimplemented BYOD plan. However, in today’s world, BYOD also presents a significant risk. Compromised data coupled with potential loss of control of data are the two biggest risks facing organizations allowing BYOD. However, by educating team members, implementing a well-designed and communicated BYOD policy, addressing BYOC, and implementing MDM tools, you can efficiently and effectively manage these risks without stifling team member AZ CPA productivity. Tommy Stephens is a shareholder at K2 Enterprises, where he develops and presents continuing education courses to business professionals across North America. You may contact Tommy at tommy@k2e.com. You may also follow Tommy on Twitter where his handle is @ TommyStephens.

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Embrace the Elephant in the Room Disability in the Workplace

by Vito A. Cosmo Jr., CPA, CGMA

This year the youngest of the baby boomers will be turning 50. Yes, it’s hard to believe, but those born in the year The Beatles invaded America are turning 50. This means that a large segment of the population, particularly the working population, will range in age from 50 to 68, using 1946 as the beginning of the boom. This also means that there will be a larger segment of the working population with age-related disabilities.1 Employees and employers need to know their rights and obligations considering the growing likelihood that someone with a disability will be an active participant in the workplace. The Americans with Disabilities Act (ADA), passed in 1990, is intended to prevent discrimination against individuals with disabilities. The ADA makes it unlawful to discriminate against a qualified individual with a disability. Here are some of the general provisions:2 • Individuals with disabilities who are qualified to perform the duties of employment are protected from job discrimination. • “Qualified to perform the duties of employment” means satisfying the employer’s requirements for the job, such as education, employment

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experience, skills, or licenses. In addition, one must perform the essential functions of the job with or without reasonable accommodation. • “Reasonable accommodation” is any change to a job or work environment that permits a qualified employee with a disability to perform the essential functions of a job, or to enjoy benefits and privileges of employment equal to those enjoyed by employees without disabilities. Reasonable accommodation may include the following: providing or modifying equipment or devices; job restructuring; modifying work schedules; reassigning to a vacant position; adjusting or modifying examinations, training materials, or policies; providing readers and interpreters, and making the workplace readily accessible to, and usable by, people with disabilities.3 I have firsthand knowledge of the situation. In fact, just a few months before my 50th birthday two years ago, I was diagnosed with early-onset Parkinson’s disease. I probably had it since 2002, when I saw my handwriting become increasingly smaller and illegible and I lost my sense of smell. Both are classic symptoms of Parkinson’s. Over the past decade, a tremor developed in my right hand that grew to include my whole right arm. I knew I had a problem in 2009. My firm sponsored a seminar for our clients, and I was on a five-person panel of speakers. When a colleague started to speak, I attempted to pour myself a glass of water. My whole arm shook and I missed the glass. I was embarrassed as the entire audience watched me struggle to pour a simple glass of water. There was some misdiagnosis along the way, and by 2012 my condition had worsened to the point that my family doctor urged me to make an appointment with the Movement Disorder Center at Pennsylvania Hospital. Two neurologists who specialize in move-

How you manage your disability in the workplace is important, but how you deal with it personally also resonates with coworkers.

ment disorders examined me. After three hours of various physical and mental tests, they told me that I had Parkinson’s. I was not fazed at all. At least my frustrations now had a label. On the way home that afternoon, my wife, Rosanne, asked me if I was going to tell anybody. Thinking about my career at Grant Thornton LLP, I knew I had to share this information. This would be the first of four steps that I’ve found help deal with disability in the workplace. Knowing that I had 10 to 15 years remaining in my career and that this was a degenerative disease, the first thing I did was to tell my boss at Grant Thornton. My boss encouraged me to tell our office managing partner, our tax partner-in-charge, and our human resources leader. That is the second step of dealing with a disability in the workplace. Sharing your private life, particularly something medical-related, can be difficult, but it is critical to let the decision makers and managers know. A disability may impact one’s ability to perform certain tasks, but it does not necessarily change one’s qualifications to do the job. Accordingly, clear expectations and goals need to be set with an employer, who, under the ADA, must make reasonable accommodations.4 In order for the employer to do so, though, the employee must disclose his or her condition.5 Public accounting is a meritocracy, so it is understood that CPAs are measured by their results – chargeable hours and revenues. How one achieves those results is secondary, within reason. In my case, I can no longer take handwritten notes, which is problematic for someone in state and local tax consulting. So, in setting clear expectations with Grant Thornton, I emphasized that either I need to use my laptop at every internal or client meeting (my tremor does not impact my ability to type yet), or I need

someone to take notes on my behalf. Grant Thornton made that reasonable accommodation. Another symptom of my disease is occasional fatigue. That means I may need to work from home once in a while, arrive later in the morning, or leave earlier in the afternoon. So long as I am still producing results, Grant Thornton made this other accommodation. My Parkinson’s, however, can’t be used as an excuse for poor performance. That is a crucial distinction. If, as a result of my Parkinson’s, I can no longer perform my job, that will be the time for a mutual discussion on whether or not long-term disability is best for both of us. I have decided to be very open about my Parkinson’s. I shared my condition with fellow employees and clients. After all, my tremor is the proverbial “elephant in the room.” By being forthcoming, I help make fellow employees and clients feel more at ease. That’s good for business, and it is the third step in my approach to dealing with disability in the workplace. I also recommend using humor to diffuse potentially awkward situations. For instance, I give a fair number of speeches each year, including many with the PICPA. Midway through a speech, I sometimes notice the attendees looking more at my tremor than at me or the PowerPoint slide projected behind me. I say, “Time out. I see you all noticed my tremor. Well, I have Parkinson’s disease. It’s OK. I have it under control. But if you don’t like the presentation, go easy on the evaluations. After all, I have Parkinson’s.” With that gratuitous, Michael J. Fox-like delivery, a roar of belly laughs comes from the attendees. When tactfully done, humor is the fourth step in dealing with a disability in the workplace.6 How you manage your disability in the workplace is important, but how you deal with it personally also

FEBRUARY 2015 y AZ CPA

resonates with coworkers. Personally, I maintain a positive outlook. I remind myself every day that there are much worse diseases out there than Parkinson’s. That outlook is reinforced by my support network, which includes my wife. She is my partner in dealing with my disease. I have also embraced the Parkinson’s community by becoming active with The Parkinson Council, where I now sit on its board of directors. The Parkinson Council, a local affiliate of the National Parkinson’s Foundation, provides funding and support to local research projects and clinics. Furthermore, I have raised funds for The Parkinson Council through Grant Thornton, which has been a sponsor of such events as the Parkinson Council’s annual golf outing. Some disabilities respond to good diet and exercise. Make sure you incorporate these good habits into your workday. In fact, these are positive choices that everyone can embrace, so your actions can serve as a model for other employees.

16 AZ CPA y FEBRUARY 2015

What works for one person, however, may not be a fit for everyone. An employee with a disability should meet with his or her physician to develop an effective, personalized plan. Finally, CPAs work in a profession that can occasionally be stressful. Having a disability can worsen stress; conversely, stress can sometimes worsen the disability. Take each workday one at a time. I make every effort to reduce my stress level at work by surrounding myself with positive people, employing deep breathing exercises, and staying organized, a skill for which my CPA training has prepared me well. I don’t make any expressed or implied guaranties that what works for me will work for everyone. I am neither an attorney nor a human resources professional. I’m simply a CPA dealing with a disability in the workplace, and it is my hope that my personal story will help other CPAs with disabilities or others who may work with someone AZ CPA with a disability.

Endnotes

1. With the pushback of the fullbenefit Social Security retirement age to 67 for most baby boomers, more individuals will be working later in their lives. 2. www.eeoc.gov/laws/types/disability. cfm 3. Id. 4. The Americans with Disabilities Act of 1990 5. Id. 6. Other workplace challenges can be networking functions and business meals. One should be up-front about a disorder here as well. Vito A. Cosmo Jr., is a CPA in Philadelphia, where he is managing director of state and local taxes for Grant Thornton LLP.. He can be reached at vito.cosmo@us.gt. com. Reprinted with permission from the Pennsylvania CPA Journal, a publication of the Pennsylvania Institute of Certified Public Accountants

The Top 10 Things You Can Do To Secure Your Company and Client Information by Paul J. Beckert, CPA

Itâ&#x20AC;&#x2122;s not just big businesses like JPMorgan Chase, Target and Home Depot that get hacked. Small companies suffer from intrusions into their computer systems, too. The costs associated with computer and website attacks can run well into the thousands and even millions of dollars for a small company. Many small businesses have been attacked â&#x20AC;&#x201D; 44%, according to a 2013 survey by the National Small Business Association. Those companies had costs averaging $8,700. JPMorgan Chase (JPM) said the attack on its computer servers this summer compromised customer information from about 76 million households and 7 million small businesses. Digital thieves are constantly on the lookout for data to stealâ&#x20AC;&#x201D;personal information, financial records, intellectual property, or whatever valuable data they can get. They may then use this data to steal money from bank accounts or to set up credit cards, or they may simply sell the personal information to a third party. With this increase in security breaches, now more than ever, it makes sense to review your company and client information security. Following is a list of the top 10 things you may want to consider.

FEBRUARY 2015 y AZ CPA

1. Conduct a security audit

If you don’t know what parts of your business are vulnerable or what data you have that needs to be protected, you can’t properly secure it. It is critical that you work with a professional to audit your entire IT infrastructure—computers, network, and mobile devices—to determine what you need to do to prevent hackers from accessing your network. 2. Make staff aware of the important role they play in security and have policies

Your staff are your front line of defense when it comes to security. Sure, hackers can access your network remotely and siphon off data without setting foot in your office. However, vigilant employees can ensure that human error—which is a big cause of data security breaches—is minimized. Its one thing to ask employees to work securely, but you must also have clear and simple policies in place for them to follow to ensure that they are working in a secure environment. For example, insist that all notebook computers connected to the corporate network have security software. Mandate that no security information ever be given over the phone. Policies like this and more will help ensure that your staff are doing their part to be security aware. 3. Use strong and multiple passwords

Too many of us use simple passwords that are easy for hackers to guess. When we have complicated passwords, a simple “dictionary attack”—an attack by a hacker using an automated tool that uses a combination of dictionary words and numbers to crack passwords—can’t happen. Don’t write passwords down; commit them to memory. The most common recommendations when it comes to picking a password includes not using the same password on every one of your accounts, using combinations of letters, characters, and numbers, and making sure that your password is as arcane as possible without necessarily making it too difficult for you to remember it.

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4. Put up a strong firewall and encrypt your data

In order to have a properly protected network, firewalls are a must. A firewall protects your network by controlling Internet traffic coming into and flowing out of your business. They’re pretty standard across the board. Encryption is a great security tool to use in case your data is stolen. Good encryption uses very robust secret codes that are difficult if not impossible to crack, to protect your data. For example, if your hard disk is stolen or you lose your USB thumb drive, whoever accesses the data won’t be able to read it if it’s encrypted. Relatively easy-to-use e-mail and file encryption software is available. 5. Update your software

Make sure you have the latest updates for your software - especially for your virus checking software. Make it a habit to regularly check for updates and enable automatic updates for software that offers that feature. 6. Back up

Security is important, but if your data is not backed up, you will lose it. Ensure that your data is properly backed up, and test the backup to ensure that your data can be recovered when you need it. 7. Protect your mobile work force

With the proliferation of the Android, iPhone, and other mobile devices, more of your staff are working away from the office—and away from the protection of your network security. They are operating “in the open” on your customers’

networks, public networks at coffee shops, or free networks in the park. It is important to ensure that their mobile technology, often connected wirelessly, is as secure as possible. Protect your smartphone: • Set a Password — Yes, it sounds ridiculously simple. But setting a password is the first step to securing your smart phone. • Install Security Software — It’s an indicator of how serious an issue smartphone security has become: the top antivirus providers offer software specifically designed to protect handheld devices. It’s worth your while to review all of your options and choose a solution that best fits your needs. • Enable Remote Wipe —It’s a terrible feeling, to suddenly realize that your smartphone (along with its, business contacts, emails, etc.) is still in the passenger seat of the airplane, that it’s been stolen, or that you don’t have any idea where you left it. In a worst-case scenario, your only recourse is to remotely wipe your data. Blackberry, iPhone, Windows Mobile, and Palm platforms include remote wipe capabilities. • Download Trusted Apps — it may be fun to jailbreak your iPhone. But be aware that when you step outside the closed environment of a trusted app store, you are exposing yourself to the malware that these sources screen out. All of the major platforms have trusted app sources, including the iPhone App Store, the Android Market and the BlackBerry App World, stay inside the closed environment. (continued on pg. 20)

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y Management Monitor Survey, which © 2014 Services provided by Bank of Arizona, a division of BOKF, NA, Member, FDIC. BOKF, NA is a subsidiary of BOK Financial Corporation. *Results are from the 2013 Phoenix-Hecht Cash monitors both public and private U.S. corporations with sales of $40 million and greater. It ranks corporations in three performance categories: product performance, bank perception and relationship management.**BOK Financial is among the top 25 largest U.S.-based commercial bank holding companies in the U.S., based on total assets, according to SNL Financial as of 12/31/13.

8. Be conscious of home computer security

On the other side of the coin, your own computer may be a trouble spot for Internet security. If you have a DSL line, broadband cable modem or other connection to the Internet that is up and running 24 hours, unlike a modem-and-phone-line connection, be sure to turn your computer off when you are not using it. Most home PCs have poor security compared to the UNIX workstations that power most commercial Web sites. System crackers search for vulnerable, unattended DSL-connected home computers, and can invade them with surprising ease, searching through files looking for credit card numbers or other sensitive data. 9. Go paperless in as many ways as possible

Consider cutting back on the mail you receive from clients, banks, financial institutions by discontinuing paper bills and statements. Access

confidential information via secure file transfer or at the issuer’s website instead. Ensure whatever paper confidential information you do receive goes through the shredder instead of into the wastebasket. Shred anything that has any number, name, and address on it. 10. Implement a multiplesecurity-technology solution

Viruses that corrupt data are not the only security threat. Hackers, and their attacks, are more sophisticated than ever, and it is critical to have multiple layers of security technology on all your different devices (including each desktop, mobile device, file server, mail server, and network end point) to comprehensively secure your data. This multiple security will block attacks on your network and/or alert you to a problem so that you (or your IT expert) can take the appropriate action. Securing your business’s data is not easy, and it takes expertise. However,

you can implement very practical and simple solutions to ensure that when a hacker sniffs around your network or computers, they will move on to another victim—because your infrastructure is not worth the trouble of hacking into it. With the number of security breaches increasing on a daily basis, now more than ever, it makes sense to review your company and client information security. Implementing some of the measures listed above can really make a difference in your business informaAZ CPA tion security. Sources: Ramon Ray, Smallbiztechnology.com, Technology Solutions for Growing Businesses. Stanton McCandlish, EFF Technology, Lisa Rogak, Credit Card Help, Roland Cloutier, Chief Security Officer for ADP and a board member for the National Cyber Security Alliance, USA Today. Paul J. Beckert, MBA, CPA, is president of Pinnacle Business Solutions. He is a member of the ASCPA Tax Steering Committee — paul@pinnacle-business.com.

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GR WTH It’s what CGMA stands for. Officially, of course, it’s Chartered Global Management Accountant. A new designation representing accomplished professionals that drive and deliver business success, worldwide.

Find out more at cgma.org

FEBRUARY 2015 y AZ CPA

Classifieds Business Opportunities/ Practices for Sale CPA FIRM SEEKING TO BUY CLIENTS —Established over 30 years, we are experienced in smooth transitions and maintaining high client retention. We specialize in servicing small to medium businesses. If you are planning on retiring, we can customize a transition for you. If you want to downsize or change careers, we will buy part of, or your entire client base. We service the entire metropolitan Phoenix area and offer complete accounting and tax services. Call Joy today at (480) 990-2727 or email joy@awcpas.com. TUCSON CPA TAX PRACTICE AVAILABLE FOR MERGER/BUYOUT OR NEW PARTNER — Two retirement minded partners of a $1 million, primarily tax practice in Tucson seek a firm that wants to merge or buyout the partners over an agreed upon time frame. The practice is well established over the last thirty years and highly profitable with a strong concentration in business and individual tax preparation and consulting. Firm would also consider a strong candidate to buy into the practice. Firm has a no cost 90-day notice to landlord, if firm merges and cancels lease. Please send inquiries and desired goals to yazzr33@ gmail.com or CPA, 6590 North Regal Manor, Tucson, Az 85750.

Employment CPA FULL/PART TIME— Camelback corrider CPA firm seeking CPA for full or part time. Ideal candidate will have five-plus years’ experience in public accounting. Responsibilities include individual/business entity tax preparation, quickbooks account analysis, financial statement preparation, client relations. Knowledge of Lacerte a plus. You will be working with other CPAs in a sociable environment. CPA with existing practice would invite a valuable discussion. Please send resume and expected salary requirements to MRA@PHXCPA.NET. Full Charge Bookkeeper or Accountant — Daniel S. Spiro Companies Ltd. - Scottsdale Lighting Design & Wholesale Electrical Supply Company is looking to hire a CPA or CPA candidate. Bachelor’s degree in Accounting or Finance5 years’ minimum of the last 5 years, verifiable experience, proficiency in QuickBooks required. Certification a plus, experience in construction/ A/E experience a plus.Candidate needs to be an analytical thinker, highly organized, self-starter having multitasking capability with a good sense of prioritization. The position requires excellent verbal and written communication skills interacting with vendors and clients. $62,000-$65,000/ yr DOE Full Time. Full medical & dental, $3,500/yr HSA contribution,

401K Profit sharing, 401K Employee contribution & vacation. Email resumes to: cbell@spirocompanies.com. SENIOR TAX MANAGER — CPA required. Prepare and review complex business tax returns. Part time position. Dynamic firm. Paperless environment. Highly technical. Qbooks, Lacerte, RIA and Practice CS are utilized. Flexible hours are available. Attach resume in pdf to lams12@aol.com TAX ACCOUNTANT— Epstein Schneider, PLC - Growing CPA firm in Scottsdale seeks a Tax Accountant with 2-5+ years of recent CPA firm experience to join our team for preparation of business and individual income tax returns. We offer a paperless work environment, opportunity for growth and advancement, and competitive salary and benefits. Experience with ProSystems fx and QuickBooks a plus. Interested candidates may submit a resume to mark.schneider@epsteinschneider.com.

Office Space DOWNTOWN PHOENIX CPA ANNEX-DESIGNED BY A CPA FOR A CPA—9 were available, ONLY 3 left. Free Rent and Free Parking. Office Space $500 per month. Ideal for sole proprietor. Walk to Ball Park, Basketball Arena and great restaurants. Dynamic environment. Collaborate. Share resources. Class A Office. Call Lance at (602) 741-7876. www.office4cpa.com.

For more information on classifieds, go to www.ascpa.com and click on marketplace, for display advertising, contact hfrei@ascpa.com.

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In the Black ... Adventures in Accounting

Concept: Heidi Frei; Illust.: Jack Gannon

Stress Relief During Tax Season ...

Check out the ASCPA Connect Site to see more stress relieving solutions and join the discussion. Knowing you are not alone this time of year is also very therapeutic.

connect

Communicate • Collaborate • Contribute The interactive online community only for ASCPA members What’s Happening on Connect?

3Best Practice Sharing — Are you encrypting your computers’ hard drives? Don’t miss out! Join communities on Connect for your field of interest.

If so, is it for desktops, laptops, servers or all of the above? And what are you using to handle it? The same question arises for phones and tablets.

Articles of Interest — National tax expert Ed Zollars shared his blog post “Reimbursement of Individual Plan Premiums by an Employer: The Issue and How to Deal with Clients Impacted by It.”

Questions Answered — “I’m looking for a resource that I can give to new board members of a small religious nonprofit organization. Specifically, a resource that addresses some of the financial and legal aspects of nonprofit management would be very helpful. A primer on nonprofit finances would also be helpful, especially one geared toward non-financial types.”

Referrals — Property tax attorneys, CPA in Mexico, collection agencies, website developers and more.

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PRSRT STD U.S. Postage PAID Phoenix, Arizona Permit No. 952

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Health Care Reform—You have questions, we have answers! Along with guaranteed acceptance for health insurance under the Affordable Care Act, there are multiple ways to purchase coverage. For those who qualify for a tax subsidy because they earn less than 400% of the Federal Poverty Line, the “Marketplace” is the mandatory enrollment vehicle. But how does someone know which plan to buy? How can they know if they qualify for a subsidy? How much will it be? Are there any other benefits to qualifying for the subsidy? Which insurance company is the right choice? How do they access the Marketplace (previously known as the Exchange)? The Argus Group is committed to the insurance business, and we have answers to all of these questions and more. If you and/or your clients are looking for guidance in this new world of health insurance, we would love to be the company that helps you navigate the storm. Please feel free to give us a call at (602) 863-0080. We are here to help.

The Argus Group 602 863-0080, ext. 105 or ext. 106

24 AZ CPA y FEBRUARY 2015