AZ CPA Nov. 2014 by ASCPA

CPA NOVEMBER 2014

The Arizona Society of Certified Public Accountants

CPA Helps Bring

SUper bowl and $$$ to Arizona

New Sales Tax Requirements • 1031 Exchange Activity • Succession Planning www.ascpa.com

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NOVEMBER 2014 y AZ CPA

CPA NOVEMBER 2014

Volume 30 Number 9

New Sales Tax Requirements to Hit Arizona Construction Contractors

Taxpayers and CPAs may find it difficult to comply with Arizona’s new “Tax Simplification” law affecting construction contractors’ transaction privilege sales taxes. by James Barash, CPA, and Nicholas Walters, Esq.

Financially Unsophisticated Clients: Headache or Opportunity?

New ways to look at “challenging” clients. by Phillip Glasscock, CPA

Features

The Accounting Education Summit

The Economics of the Game

CPA Jodi Noble is a member of the Super Bowl Host Committee, helping to bring business to Arizona.

by Ross Grainger, CPA and Shyam V. Sunder

by Patty Gannon

Building Your Bench for Succession

The single most important factor for a successful succession plan may be who you are grooming to succeed you.

Three Factors Driving the Surge in 1031 Exchange Activity in 2014

by Gary Adamson

The growing trend of 1031 exchange activities. by Joe Callaway

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

4 AZ CPA y NOVEMBER 2014

Lessons learned from the Accounting Education Summit from the employers’ and eductors’ viewpoints.

Columns & Departments 6

Chair’s Message by Anita Baker, CPA

Focus on Members

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

26 Classifieds 27

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 Sandra Hieb Mike Holt Bill Judge Adam Miller Molly Montgomery Jennifer Nordstrom Vanesa Romero 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

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

www.ascpa.com

AXIOM

Financial Advisory Group, LLC

Wealth management for high income, high net worth individuals and highly profitable business owners. • Financial Planning • Investments • Retirement Plans Armando G. Roman, CPA/PFS MBA Wealth Manager/Financial Advisor

Gainey Ranch Financial Center 7373 E. Doubletree Ranch Rd., Ste. 170, Scottsdale, AZ 85258 (480) 367-9000 • www.axiomcorp.com Registered Representatives offering securities and advisory services through Independent Financial Group LLC, a registered broker-dealer and investment advisor. Member FINRA/SIPC. Independent Financial Group, LLC and AXIOM Financial Advisory Group, LLC are not affiliated. Office of supervisory jurisdiction: 12671 High Bluff Dr., Ste. 200, San Diego, CA 92130.

NOVEMBER 2014 y AZ CPA

Chair’s Message

by Anita Baker, CPA

New Experiences and Opportunities I’m writing this on Oct. 3, only 12 days until a big deadline, and here I am at the Miramar Air Show in San Diego. It is days like these when I am grateful for mobile technology and the ability to work remotely from any location! You may wonder why I would choose to attend this event given the timing. My husband is a big fan of air shows and World War II history and last spring he was able to fly in a P-51 Mustang, his favorite World War II fighter plane (see photo). Since life and marriage involves compromise and my husband is a huge supporter of me professionally, I decided that I could attend the air show (as long as he didn’t mind me working during the “slow” part of the show) and enjoy the weekend in San Diego. I have always been willing to try new experiences and take on opportunities both personally and professionally. When I started my career, I had the opportunity to work on audits, reviews, compilations and even prepare tax returns. This experience gave me a great foundation for my career. I remember the first (manual) tax return that I prepared when I was a new staff. I had so many review comments from the manager that I thought I was going to be fired! Fortunately, an audit manager left the firm and the partner asked me if I wanted to be in-charge of a large multiemployer plan audit. Fortunately, I was willing to take on the opportunity to work directly with the partner and client on this engagement. This ultimately led me to be promoted to manager and focus on employee benefit plan audits. When the Affordable Care Act (ACA) was passed in 2010, I was asked to take on a leadership role to educate and assist employers with ACA compliance. It has been a significant opportunity for me to expand my knowledge and develop my speaking and writing skills. Since this is a topic that affects everyone, including nonprofit and governmental entities, there is a significant opportunity for CPAs to provide advice and resources. My intention is not to educate you on the ACA in this article, however, I

6 AZ CPA y NOVEMBER 2014

thought it would be helpful to provide you with a few questions to ask regarding an employer’s readiness for the ACA. Are you a small, mid-size or large employer? A small employer generally has less than 50 full-time employees (>30 hours/week) plus full-time equivalents (FTEs). Full-time equivalents are calculated by adding up all of the parttime hours in a month (up to 120) and dividing by 120. A mid-size employer has between 50-99 FTEs and a large employer has 100 or more FTEs. If you are a small employer, do you currently provide a group health plan for your employees? A small employer may use the Small Employer Health Option Program in the Marketplace to obtain a group health plan and may qualify for the small employer tax credit. Small employers are not subject to the shared responsibility penalties, even if their employees obtain individual coverage at the Marketplace and qualify for a premium tax credit. If you are a mid-size employer, do you meet the criteria to delay the employer shared responsibility penalties until January 1, 2016? The criteria includes having between 50-99 employees in 2014 with no reduction in the workforce hours or size between 2/9/14 and 12/31/14 and maintaining previously-offered health coverage between 2/9/2014 and the end

of the plan year in 2015. This information must be certified by the employer. If you are a large employer, have you determined if your group health plan meets the minimum value standards and is affordable (less than 9.56% of an employee’s income)? A large employer may be subject to penalties on Jan. 1, 2015 if any employee goes to the Marketplace, obtains insurance and receives a premium tax credit. The credit may be available to individuals, depending on their income, if the employer does not offer coverage or offers coverage that is not affordable. There are many other provisions of the ACA that are important to discuss with your clients, including the new reporting requirements that take effect in 2015. This is a great opportunity to expand your knowledge and be a trusted adviser on a very important topic that impacts all individuals and AZ CPA employers.

Focus on Members Jason Mayer, CPA, joined National Bank of Arizona as a vice president. Pamela Chan, CPA, joined Credit Union West as CFO. She recently retired from Alliance Bank of Arizona as their Chief Financial Officer where she played an integral role in several acquisitions and the development of a robust risk management process. Lisa Daniels, CPA, with KPMG, LLP, is now on the advisory board of the Musical Instrument Museum. James G. Busby, Jr., CPA, of The Cavanagh Law Firm, has been appointed to the advisory board of the Phoenix Tax Workshop. REDW promoted Jose Escalante and Myrond Muskett to senior accountant in the firm’s audit & consulting department. Jim Susa, CPA, has joined the Tucson office of the law firm DeConcini McDonald Yetwin & Lacy, P.C. as a shareholder in the firm’s tax practice group. Aaron Grant, CPA, MBA, CGMA, accepted a position on the Board of Directors for AEA Federal Credit Union in Yuma, AZ. Brooke Westemeier, CPA, was promoted to partner and Traci Sowersby, CPA, was promoted to executive director in EY’s assurance practice based in Phoenix.

Jack Sheldon – In Search of a Stamp ASCPA member Jack Sheldon, CPA, is a serious philatelist – which means he is wild about stamps. In fact, when he saw the CPA postage stamp and poster in the ASCPA office, he had to have one. The U.S. Post Office released the stamp on Sept. 21, 1987, to commemorate the 100th anniversary of the accounting profession in the United States. The stamp was issued at the Radio City Music Hall during the opening of the American Institute of Certified Public Accountants’ (AICPA) five-day centennial membership meeting and exposition. Sheldon found that while the CPA stamp was not too hard to find, “interestingly, there is version of this stamp that mistakenly omitted the ‘CPA’ letters and ‘22 USA’ denomination, which is more valuable and not within the budget of many collectors.” He obtained both the official stamp and its more valuable counterpart with the error. (see inset above) “There are several ways to collect the issue, and at the ASCPA office hangs a framed poster and a mint single,” says Sheldon. “While the poster is out of print and as I experienced recently, difficult to locate, a sheet of the stamps can be found online at popular auction websites. An interested party can choose to collect a mint or used single copy, a block of four or plate block, a sheet of

Newsworthy CPAs..

50, a commemorative panel, and / or a first day cover, all of which are typically

Dr. Rufus Glasper, CPA, chancellor of the Maricopa County Community College District, was the subject of the cover story in the August issue of Frontdoors Magazine.

available from online sources. One has to be cautious about who the seller is, and

•••

compare pricing, and of course to be patient when searching these resources.” Sheldon began collecting stamps as a young boy and invested his weekly allowance at the post office in Owosso, Michigan, where postal clerks “anticipating my weekly arrival, began to hold some gems aside for me.” He is a life member

In Memorium

of the American Philatelic Society, and a member of the U.S. Airmail Society, the

Andy Laubmeier

U.S. Stamp Society, and the Mesa and Phoenix Stamp clubs. — Patty Gannon

NOVEMBER 2014 y AZ CPA

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A Dash of SALT

Qualified Manufacturers are No Longer Subject to Arizona Sales Tax on Purchases of Electricity and Natural Gas This month’s state and local tax (SALT) column focuses on Arizona’s new transaction privilege (“sales”) tax deduction for purchases of electricity and natural gas by qualified manufacturers. The deduction went into effect on August 1, 2014. General Qualifications To qualify for the sales tax deduction, businesses must be “principally engaged” in manufacturing, and at least 51 percent of the electricity or natural gas purchased must be used in manufacturing. The deduction does not apply to the cost of gas transportation services.

Definition of “Manufacturing” The statute defines “manufacturing” as “the performance as a business of an integrated series of operations that places tangible personal property in a form, composition or character different from that in which it was acquired and transforms it into a different product with a distinctive name, character or use.” But, for purposes of the deduction, manufacturing does not include “processing, fabricating, job printing, mining, generating electricity or operating a restaurant.”

What does it Mean to be “Principally Engaged” in Manufacturing? The new statute provides that “principally engaged” in manufacturing means at least 51 percent of the business is a manufacturing operation. According to draft guidance from the Arizona Department of Revenue, businesses that do not qualify for the deduction at the entity level may still qualify at the facility level.

ADOR’s draft guidance provides that companies are principally engaged in manufacturing if 51 percent or more of their business is directly related to manufacturing based on the percentage of their: (1) capital equipment costs that are directly related to manufacturing; (2) revenue that is directly related to manufacturing; (3) head count that is directly related to manufacturing; and (4) square footage that is directly related to manufacturing. According to ADOR’s draft guidance, businesses are “principally engaged” in manufacturing if they satisfy the 51 percent test for two or more of these criteria.

The Other 51 Percent Test To qualify for the deduction, businesses that are principally engaged in manufacturing also must use at least 51 percent of the electricity that they purchase in manufacturing operations in order to qualify for the electricity deduction and at least 51 percent of the natural gas that they purchase in manufacturing operations in order to qualify for the natural gas deduction.

Some Arizona Municipalities May Not Allow the Deduction The legislature left it up to each Arizona city and town to decide for itself whether to provide a corresponding local sales tax deduction, so we should know soon which municipalities follow

the state’s lead by adding this incentive for manufacturers to locate and expand their operations in Arizona to their local tax codes. Practice Tip! – Savvy CPAs alert their clients to tax law changes that affect them. If any of your clients clearly are manufacturers, or may fall under the relatively broad language that the Arizona Legislature used to define “manufacturing” for purposes of this new deduction, they will appreciate it if you bring this potential tax savings opportunity to their attention and help them determine whether it applies to them. AZ CPA James G. Busby, Jr., CPA, is a state and local tax attorney 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. He is a member of the Arizona Society of CPAs. 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.

NOVEMBER 2014 y AZ CPA

The Economics of the Game CPA helps bring Super Bowl and business to Arizona by Patty Gannon

For a football fan, there may be no greater dream volunteer opportunity than to be a member of the group that helps plan the Super Bowl in your state. This dream has come true for one Arizona CPA. Jodi Noble is the only CPA, and one of only two women on the 20-person Board of Directors of the Arizona Super Bowl Host Committee. The Arizona Super Bowl Host Committee is a private, nonprofit Arizona corporation that drives Arizona’s plan for Super Bowl XLIX and is responsible for a $30 million fundraising goal. Noble got her dream opportunity through her love of football, network connections and hard work. “Football has always been a family affair at our house,” says Noble, who is married to Mike Noble and has two children. “We have had Cardinal season tickets since the stadium was built and we even plan our vacations around the games.” “My role on the Committee is very similar to my ‘day job,’” explains Noble, who serves as an audit partner with Deloitte & Touche LLP, working with large companies in real estate and retail industries. Her expertise includes public and private offerings, business combinations, divestitures and SEC reporting. “Of course as a CPA, I am the treasurer and culpability is my highest priority,” says Noble. “It’s a big role and I take it very seriously. I focus on compliance and our responsibility to the NFL and our partners. I make sure we have an accurate reporting of our results and measure the progress we have made, and communicate that accurately. And we are doing great so far!” she adds. “In 2011, Arizona won the bid for the 2015 Super Bowl to be held Feb. 1, 2015,” she explains. “The bidding process is complicated and expensive and involves many individuals around the state. One component of winning the bid is for the Committee to pay $25-30 million to the NFL to help offset some of the costs of bringing the game to Arizona. Each member of the Host Committee

10 AZ CPA y NOVEMBER 2014

is personally responsible for raising $2 million.” “Fundraising is not my strong point,” says Noble. “I even hate to ask family members to buy my kids’ fundraising gift wrap, so this will be a challenge for me! Luckily, many key partners have signed on early, wanting to be part of the excitement of the game and the surrounding publicity. The money comes from businesses and tourism organizations, and individuals who want to have a presence at the Super Bowl and help the Host Committee tell ‘our story’ of Arizona.” Part of the Committee’s purpose is to bring a united approach to maximize positive media exposure, positive economic impact for the state and to leave a lasting legacy long after Super Bowl XLIX is over. While she may not be most comfortable at fundraising, she is definitely passionate about the game and the business opportunities that will be presented in conjunction with the Super Bowl. Noble is particularly proud of two programs that engage the business community. The first is the Arizona Super Bowl Host Committee Business Connect, where more than 400 small businesses connect to the NFL through a database and website. The program will also provide business development in the forms of workshops and tradeshows focusing on how to best partner with the NFL. “The second program is the CEO Connect Program,” explains Noble. “We’ve selected CEOs from across the country to introduce them to Arizona government and local business leaders. We want to open their eyes to how great Arizona really is and share the story we want to share. The purpose is to encourage these individuals to relocate or expand their businesses to Arizona, to host conferences and events here, or just to come back to spend their vacation dollars. We are hoping to trigger many future opportunities working with these select leaders.” “Of course, there is also the charitable arm of the Committee,” says Noble. “We

I focus on compliance and our responsibility to the NFL and our partners. Jodi Noble, CPA

Photo by Jeff Noble

NOVEMBER 2014 y AZ CPA

Super Bowl Economics $500+ Million in Economic Impact to Arizona $2+ Million Community Non-profit Grants 10,000 Volunteer Opportunities

Brings 100,000 Visitors to Arizona

20,000 Hotel Rooms Blocked

160 Million TV Viewers 190 Countries Broadcast the Game 6,000 Media Attendees

200,000 NFL Experience Attendees 1,000,000 Super Bowl Central Attendees

6,000+ private aircraft flights to Arizona airports within 5 days

will invest $2 million ($600,000 has already been awarded) to nonprofits promoting education and a healthy lifestyle to youth and families in the community. We plan to choose a few small groups and invest heavily so we can make a greater impact.” As a “perk” of working on the Host Committee, Noble is of course excited about participating in all of the festivities the week of the game. “There is so much going on! The week before the game, we will also have the Pro Bowl here and the Waste Management Golf Tournament. There will be lots of events around Phoenix and the other adjoining cities.” “One of the newest features that differs from the last Super Bowl held here is the addition of Super Bowl Central — a giant block party in downtown Phoenix that will feature fun events for the entire family.” “Super Bowl Central will give those who may not have the chance to attend the game a chance to participate in the fun,” says Noble. “We will have a feature that is definitely a ‘wow factor’ attraction that will be unique to Arizona.” In fact, according to the Super Bowl website, Super Bowl Central will take up over 12 city blocks in downtown Phoenix and will serve as the hub of fan, sponsor, media and NFL activities for Super Bowl XLIX. The NFL Experience and Media Center will sit adjacent to Super Bowl Central to optimize the fan experience. The festival will feature family friendly activities for fans of all. Local culture and food will be showcased and one million visitors are expected to participate. Super Bowl XLIX promises to bring an estimated $500 million in economic impact to Arizona. If you think you might enjoy a Super Bowl volunteer experience as well, Noble points out, “there are 10,000 volunteer opportunities out there for those that want to help out and they get a cool experience and T-shirt in AZ CPA the bargain!” Patty Gannon is senior manager of communications for the Arizona Society of CPAs. You can reach her at pgannon@ ascpa.com.

12 AZ CPA y NOVEMBER 2014

FACTOR #1: HIGHER TAX RATES

Three Factors Driving the Surge in 1031 Exchange Activity in 2014 by Joe Callaway

In the real estate market, the convergence of higher tax rates, a very strong commercial market, and a recovering residential market has resulted in a surge in 1031 exchange activity this year. Before getting into why this is happening, a quick recap on 1031 exchanges. IRC Section 1031 allows investors to sell investment real estate, roll sale proceeds into “like kind” property, and defer taxes due on sale. There are no limitations on how many times this may be done. For all practical matters, using 1031 a taxpayer may defer gains and taxes all his or her life and upon death, taxpayer’s heirs get a step up in basis effectively wiping out prior untaxed gains. A brief moment of silence for this beautiful taxation anomaly. An investor exchanging for “like kind” property may exchange raw land for a single family home, apartments, a commercial building, a Delaware Statutory Trust (DST) or certain oil and gas investments. A DST is basically a trust holding professionally-managed real estate for the benefit of multiple 1031 exchangers. According to Armando Roman, financial advisor at AXIOM Financial Advisory Group, sellers may achieve more portfolio diversification by exchanging into a DST or certain oil and gas investments that qualify as “like kind” property. Although real estate investors may be experiencing gains, they are faced with a headwind of taxation which may be viewed as reducing net investment returns. Consequently, investors may seek ways to reduce their tax liability. Once again, IRC Section 1031 emerges as a valuable tool for boosting net investment returns by deferring tax liability, and for preserving capital for reinvestment into “likekind” replacement properties.

Tax rates and their impact on an investor’s net investment return can drive investment decisions. CPAs know this all too well. Taxes should not necessarily drive the decision making process but certainly should be considered in making the decision. Economist Art Laffer stated that when tax rates increase, actual tax revenues can decrease as a result of efforts by investors to mitigate tax consequences. In essence, as tax rates increase, an investor’s motivation to defer immediate taxation also increases. This is reflected currently in a surge in 1031 exchange activity. Many investors are surprised to find that today they may face four different taxes and, when combined, the aggregate impact can be significant: 1. Depreciation Recapture: Upon sale of investment real estate, depreciation recapture is taxed at 25%. 2. Federal Capital Gain Taxes: Investors in the higher tax brackets pay capital gains taxes at 20%; lower tax brackets pay capital gains at 15%. 3. Net Investment Income Tax: Pursuant to IRC Section 1411, an additional 3.8% surtax applies to taxpayers with “net investment income” who exceed certain threshold income amounts. 4. State Taxes: Investors must also pay applicable state tax. FACTOR #2: ROBUST COMMERCIAL MARKETS

Currently, commercial real estate (CRE) prices nationwide are about 3% above the previous market peak in 2006. Domestic commercial investors, institutions, and Real Estate Investment Trusts (REITS) continue to exhibit a strong appetite for quality commercial properties. International investors see the U.S. as a safe haven, and their demand further fuels the CRE activity. Commercial investors having strong borrowing and buying capacity, capitalize on favorable CRE opportunities. The demand for quality CRE assets is so strong that CRE activity is

NOVEMBER 2014 y AZ CPA

now beginning to expand to secondary and non-core markets. All of this CRE activity is contributing to the surge in 1031 exchange activity as CRE investors utilize 1031 to minimize the tax impact of their transactions. Sales of office, retail, multifamily, hospitality and land were approximately $370 billion in 2013, 18% higher than the year before, and the strongest year since 2007. This momentum is continuing in 2014. Vacancy rates have decreased and net absorption has been strong in the office, industrial and retail markets. Last year and continuing into this year, investors continue to be very active in the hotel property sector which was up 40%, industrial increased by 23%, office up by 18%, multi-family rose 14%, and retail rose 10%. In addition, REITs appear to be very active this year with a projected pace of acquisition and expenditures running about 60% higher than the pace of dispositions. More evidence of the strong commercial activity can be

14 AZ CPA y NOVEMBER 2014

seen by the year-to-date rent growth in the U.S. apartment market, which is the best since the economy started to recover from the Great Recession (according to Axiometrics, Inc.)

new home construction during the Great Recession has led to a shortage of new single-family homes, further pushing up home prices. 1031 EXCHANGES

FACTOR #3: RESIDENTIAL HOME PRICE RECOVERY

According to the Case-Schiller Index of 20 major cities, home prices nationwide have recovered by about 20% from the market trough. Among the nation’s 35 largest metro markets, all but St. Louis and Kansas City have experienced year-over-year home price increases as of April 2014. Those with the most notable annual increases include Riverside (22%), Las Vegas (22%), Sacramento (16%), and Orlando (16%). Forecasts show about one-third of the nation experiencing home appreciation higher than the national average over the next 12 months. Rents on single-family rentals have also increased, rising by 2.3% on a year-over-year basis. Also, the lack of

The convergence of higher taxes, a robust commercial real estate market and a recovering residential market has led to an increase in 1031 exchange activity. The trend appears to be growing as more investors come to understand the tax impact of an outright sale. AZ CPA Joe Callaway is division manager at Asset Preservation Inc, a 1031 exchange Qualified Intermediary. He can be reached at (800) 282-1031 or joe@apiexchange. com. Investors should discuss their specific tax situation with their tax advisor to assess the potential value of using IRC Section 1031. This information is not intended to replace qualified tax and/ or legal advice.

New Sales Tax Requirements to Hit Arizona Construction Contractors by James Barash, CPA, and Nicholas Walters, Esq

Taxpayers and their CPAs may find it difficult to comply with Arizona’s new “Tax Simplification” law (H.B. 2111) affecting construction contractors’ transaction privilege (sales) taxes beginning next year. Effective Jan. 1, 2015, contractors will soon be facing the following problems: • Contractors must determine, on an individual contract-by-contract basis, whether the work performed under each contract is a “modification” activity subject to the state’s prime contracting sales tax, or a “service contracting” activity subject to the state’s retail sales tax. • Service contractors may face difficulty determining which city may impose tax upon the cost of construction materials. • Contractors may have to comply with new project-specific exemption certificate requirements. These changes result from the Legislature’s 2013 passage of the “Tax Simplification” law that essentially created a second sales tax regime for construction contractors as follows: • The bill created a new “service contractor” regime for repair, maintenance, and alteration activities in which the contractor pays retail sales tax on its materials but does not pay contracting sales tax on its revenue. • The original prime contracting regime remains intact for contracts in which the contractor performs “modification” activities. In a modification contract, the prime contractor buys materials exempt but pays tax on the revenue of that contract while providing exemption certificates to subcontractors and material vendors.

Many contractors may be subject to both taxing regimes and will have to determine if the contract is a “modification” or “service” contract before bidding the tax cost related to the contract. In addition, the contractor should consider the type of contract when purchasing materials. Tax Simplification also requires that the Department of Revenue (DOR) take over all city administrative, audit, appeal, and compliance duties by creating a centralized online portal for licensing, reporting, and paying both state and city sales taxes. In response to perceived difficulties implementing the new “Tax Simplification” law, the Arizona legislature recently passed a “clean-up” technical corrections bill (2014 H.B. 2389) to address some concerns about the statutory language that has arisen prior to the implementation of “Tax Simplification” as follows: • Limited the definition of “modify” and “modification,” and • Reduced the project specific exemption certificate requirement to only service contractors. Additionally, the DOR issued a draft FAQ (Prime Contracting Classification, August, 2014 FAQs). The draft FAQ provides examples of “modification contracts” and “service contracts.” However, the department’s distinction between service and modification contracts remains unclear in many respects. For example, the draft FAQ indicates that a contract to build a new wall where one did not previously exist would be considered a “modification” and subject to the prime contracting tax (tax base on revenue at job site). However, the draft FAQ also determined that a kitchen remodel that includes the construction of a new island where one did not previously exist is an “alteration” and therefore would be considered service contracting (tax base on cost of materials at vendor location). This service contracting regime also introduces issues determining which city may tax the purchase of materi-

NOVEMBER 2014 y AZ CPA

These changes may significantly complicate a contractor’s ability to bid, manage and track taxes related to purchasing materials in advance of performing jobs because current systems do not account for the data requirements of the new service contracting regime.

als. For example, when a contractor purchases material exempt from retail sales tax but subsequently uses those materials in a service contract, it will be required to remit tax on the purchase price of the materials. However, it is currently unclear in which jurisdiction the contractor would source the transaction. Regarding the new project-specific exemption certificates, the certificates are intended to apply to unlicensed service contractors that are performing subcontracting work for a taxable prime contractor. The draft FAQ indicates that

the prime contractor will be required to apply to the department of Revenue, via U.S. Mail, by supplying information about itself and for what project the certificate will be used. If approved, the department will issue a project-specific exemption certificate for the prime contractor to provide to the unlicensed service contractor. The unlicensed service contractor can then purchase materials exempt from tax for the job. At this time, it is unclear how quickly the Department will be able to issue the exemption certificates.

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Currently, there is no word from the department on what the final version of the FAQ will contain, whether the above examples will be included, or whether the final FAQ will be published prior to the effective date of January 1, 2015. If you’re confused about how contractors will comply with the new “Tax Simplification” requirements by Jan. 1, 2015, you’re not alone. These changes may significantly complicate a contractor’s ability to bid, manage and track taxes related to purchasing materials in advance of performing jobs because current systems do not account for the data requirements of the new service contracting regime. As a result, a group of contractors and builders recently petitioned the Governor to delay implementation until July of 2015 (Phoenix Business Journal, Oct. 2, 2014). However, the Governor’s Office, declined the request to delay the implementation of the law. To further complicate matters, the DOR’s Director announced in an open letter that the department needed to delay implementation of Tax Simplification’s requirement to create a single online portal for licensing, reporting, and paying state and city sales taxes until Jan. 1, 2016. However, the delayed implementation of the online portal does not delay the above issues affecting contractors. Thus, with the exception of the new online portal, it appears that contractors and their CPAs must resolve and comply with the above “Tax Simplification” issues by Jan.1, 2015. AZ CPA James Barash, CPA, director, and Nicholas Walters, Esq., supervisor; work within McGladrey LLP’s National State and Local Tax (“SALT”) practice in Phoenix, AZ. Together they have more than 25 years of experience resolving complex SALT issues for their clients. They can be reached at James.Barash@McGladrey.com and Nicholas.Walters@McGladrey.com. James Barash is a member of the Arizona Society of CPAs.

Financially Unsophisticated Clients: Headache or Opportunity? by Phillip Glasscock, CPA

Last year, an unscientific survey I conducted via ASCPA Connect sought to measure the financial and business acumen of entrepreneurs and the public at large, as perceived by Arizona accountants. The results painted a somewhat bleak picture. While 61% of respondents found experienced small business owners to have at least an “Adequate” level of business expertise, 85% described most new business owners’ expertise as “Inadequate/Poor” or “Dismal.” Shifting from business to personal finances, the assessment was not much brighter, as 71% of respondents rated the public’s personal financial expertise as “Inadequate/Poor.” If the responding accountants’ perceptions were shaped by their impressions of their clients, and if the respondents’ views represent those of financial professionals in general, that raises an important issue that can have a profound effect on the growth of an accountant’s practice and revenues: At which end of the “client sophistication” spectrum do my greatest opportunities lie? As I discussed the survey results and the above question with some of my CPA friends, their responses and preferences covered the spectrum. “A” Clients

CPAs who prefer to maximize their contacts and time spent with relatively sophisticated clients – let’s call them “A” Clients – cite the professional satisfaction and cross-marketing benefits of tackling complex issues and delivering high-level, nontraditional planning and consulting services. In short, it’s fun and profitable to talk with sophisticated clients about sophisticated things. “A” Clients might require more hand-holding, but it’s the good kind. You can expect them to look after themselves a bit more. “Projects”

While there was a general preference for working with “A” Clients, it was interesting to get the perspective of accountants whose professional DNA leads them

to appreciate the potential of many of their less sophisticated clients, or, to use a less pejorative term, “Projects.” With Projects, you frequently have to step back a bit. Requisite qualities in serving them include patience and the willingness to educate a receptive client about the basics – corporate compliance, keeping their books and records straight, contracts, dealing with employees, and dealing with suppliers and landlords. You cannot assume that they know what is important or, if they do know, how to deal with it, but at least they understand that doing important things the right way is a good idea. Projects represent an opportunity to be proactive in a non-challenging way, hopefully in a way that piques their interest and grabs their attention. You can help them set the agenda for the future decisions, and you can instill in them the ability to discern what they can do for themselves, and when to call in the cavalry (i.e, you). In the process, you have the rare and satisfying opportunity to raise the business and financial sophistication of a client and perhaps be the determining factor in whether the client fails or succeeds – and remains a client. To survive, your client can’t fall victim to some problem out there that they don’t anticipate and that, by the time they bring it to you, the damage is irreparable. That applies specifically to CPAs in terms of taxes – we’re seeing more people and companies who simply aren’t doing their taxes – and in terms of people who don’t know what their break-even point is and don’t know whether they’re making money. They don’t know how to look at their financial statements to see if their income, expenses, assets and liabilities are in line or not, or if the ratios are in line or not, so they can detect if something is going wrong before it becomes critical. That should be a CPA’s bread and butter. One of the keys to working with a Project is overcoming their resistance to being helped. First of all, the CPA has to initiate communication with the client, and there has to be information flowing

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from the client to the CPA. That can be challenging, especially among clients who come in the week before taxes are due and dump a bunch of information on the CPA, the CPA cranks out the taxes, the clients sign the returns, and that is the extent of the information. Thus, it’s vital that you get in to see the client, or send them a newsletter. Even if four out of five newsletters wind up in the trash, every once in a while a client will read them. I think that getting the client into the office or going out to see the client outside of tax season is key. CPAs who, after tax season, are basically non compos mentis – on vacation mentally and physically – have a liability. They lose track of their clients and lose the opportunity to keep the communication going. When they are with their clients, they should be asking, “How’s business? How does it compare to the past? What are you doing? What are your challenges for the future? What are your plans?” These conversations can lead to a tighter relationship and ultimately more work. Like you, I have worked both sides of the street on the A Client vs. Project issue. I have some clients who do some pretty sophisticated things, including doing their EEO investigations internally, and that’s impressive. They’re pretty sophisticated, they follow all the standard rules, and they generally do things right. I have other clients who wouldn’t even know that they even needed to conduct an EEO investigation, when they receive a complaint. All in all, I think the Projects pose more opportunities – not necessarily because they are less sophisticated, but because they are are more likely to grow and to introduce interesting new dimensions to my client base and my law practice. The same can AZ CPA be true for you. Phillip Glasscock, CPA, is an attorney, and a member of the Arizona Society of CPAs. He is a frequent contributor on the ASCPA Connect site and can be reached at (480) 941-4359 or jpg@ jpglaw.com.

The Accounting Education Summit A dialogue between employers and faculty examines the future of accounting education. More than 40 people recently attended the Accounting Education Summit, which included a panel discussion about how educators can better prepare accounting students for their future. Here are two viewpoints from two of the panelists who particiapted in the event.

Lessons Learned from Accounting Education Summit – The Employer Point-of-View

The Future of Accounting Education — The Educators’ Viewpoint

by Ross Grainger, CPA

by Shyam V. Sunder

“I don’t like a 4.0!” While this was not the only opinion I had as a panelist at the recent Accounting Education Summit, it was the first one that came to me. Yes, a good GPA is important but there is so much more for accounting students to learn during their years in school than just accounting theory and debits and credits in a textbook. If a recent graduate has a 4.0 at the end of their college career but nothing else to go with it, then they have missed out on some of the best education available during their schooling. First, students should get involved in something other than school. Sports, work, church, underwater basket weavers anonymous, anything, just do more than hit the books (or is it electronic devices now?) all day every day— bonus points for holding a leadership position and being the head basket weaver. The time management skills students will learn when being involved in extracurricular activities is something that cannot be taught in the classroom. Time management is different from multitasking. Multitasking means one is distracted by the many other things that they are trying to accomplish at the same time without effectively completing any of them. Time management on the other hand means the students have learned to properly prioritize activities to achieve the most important first. Another benefit of outside activities is learning to deal with conflict. While conflict for the sake of fighting is never a good idea, neither is shying away from necessary, productive disagreements. When students are involved in other activities, they are forced to interact with people who have other ideals

The education summit organized by the ASCPA provided an opportunity for those of us in academia to exchange thoughts about the emerging trends in the profession with CPAs in public accounting and industry. This column summarizes the key topics covered in the panel discussion from the perspective of the academics on the panel. The panel actively discussed the following issues: (1) emerging trends in professional accounting that have a bearing on training of future accountants, (2) how academia is dealing with a shortage in accounting faculty, and (3) challenges to students in achieving the CPA professional certification. The role of accountants in practice is constantly evolving and academia has to anticipate these trends to effectively train students to be job-ready. Across the panel, there was a broad consensus that accounting students need to be prepared for three main trends. First, with the wide-spread adoption of IT systems and rapid strides in data analytics, accountants need to adapt to the role of data scientists. This trend requires academia to offer courses on business intelligence and data analytics so that accounting students can gain familiarity with analyzing and identifying trends in large databases of transaction records. There is a growing interest on the part of both faculty and students to explore course offerings that combine information systems and accounting. Second, the student body in the universities is reflecting the globalization of businesses and the increasing importance of economies outside of the U.S. The students need training in

Employer’s Viewpoint Continued on next page.

Educators’ Viewpoint Continued on next page.

NOVEMBER 2014 y AZ CPA

Employer’s Viewpoint Continued... and ideas. These interactions are similar to what students can expect to face once they enter the business world, and the more practice they have, the better off they will be after graduation. Conflict in the real world drives innovation and positive change as long as it is managed in the right way. Face-to- face networking is invaluable and occurs when taking part in groups, clubs and work. In a society where we all have 964 Facebook friends and 1,269 LinkedIn connections, only the individuals who know us personally will come to our aid when needed. Electronic media is great for monitoring a network, but a cup of coffee beats out a text message every time when it comes to building lasting relationships and trust with those who will become coworkers, clients and business partners. Students need to accept that they do not know everything coming out of school. They also need to understand that employers do not expect them to

know everything. It is accepted and encouraged for recent graduates to ask a lot of questions, especially in the beginning. Here is a recommendation; recent graduates need to take notes when they ask questions. It has been said that, “there are no stupid questions.” I would modify that statement to, “there are no stupid questions, but only the first or maybe the second time they’re asked.” Any more than twice and that saying is no longer true, and the recent graduate starts to look either uninterested or incompetent, neither of which is good for their long-term career goals. In a few short words: encourage students to learn in and outside the classroom, encourage conflict, and encourage good old-fashioned networking. And in the end, how hard could it be now that the CPA quiz is on the computer and offered nine months of AZ CPA the year? Ross Grainger, CPA, is a director at Apollo Education Group. He is a member of the ASCPA and can be reached at ross. grainger@apollo.edu.

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Educators’ Viewpoint Continued... dealing with business issues in different economic and social environments as many would be joining organizations with a global footprint. The rapid increase in the number of international students requires that courses in accounting also reflect global accounting practices and disclosure requirements. Finally, with internationalization and growing complexity in practice, students need to develop soft skills in addition to technical expertise. Accounting departments are placing a lot of importance on developing leadership and communicaAZ CPA tion skills for students. Imparting these soft skills requires imaginative use of out of classroom experiences. We are leveraging such learning opportunities to include skills such as working in teams, business presentation skills, and analytical thinking. We are also giving importance to classroom discussion and introducing courses where students are encouraged to embrace complexity and not focus on one right answer. The demand for skilled students means that academic departments need a deep bench of faculty. Unfortunately, the availability of qualified faculty with doctoral degrees continues to be an issue. The initiatives of the public accounting firms in conjunction with the American Institute of CPAs need to be continued and strengthened. Finally, the panel was of the view that there continues to be a strong desire among students to obtain the CPA certification. It is important that members in practice continue to send a consistent and strong message encouraging students to take the requisite college credit hours required for the CPA certification. Overall, the summit helped to frame issues relevant for training and educating students for careers in AZ CPA accounting. Shyam V. Sunder is an associate professor of accounting at the University of Arizona. He can be reached at shyamvsunder@email.arizona.edu.

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2015 Arizona Tax Guide 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

The Arizona Tax Guide includes the following guides: • The Arizona Income Tax Guide is a comprehensive and easy reference guide that highlights the differences between Arizona and Federal income tax law and provides references to the Arizona Revised Statutes for a more in-depth analysis. It contains individual, corporate, partnership and trust tax differences, including tax tables, and is arranged in a manner that facilitates research on any topic. • The Arizona Sales and Use Tax Guide is a resource for anyone preparing or filing Arizona and city sales and use tax returns. The guide details the various sales and use tax rates that apply to each type of sale or product as well as the many exceptions, administrative provisions and Model Cities Tax Code provisions. • The Arizona Personal Property Tax Guide outlines the nature of the tax, reporting requirements, analysis of forms, audit and appeal procedures and small business exemptions. • The Arizona Unclaimed Property Guide covers Arizona rules that apply to unclaimed property, how to report and pay, and how to file your claim.

Pre-order by Dec. 18, 2014 and save Guides will be available for delivery mid-January 2015.

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Name ___________________________________________ Company ________________________________________ Address ________________________________________ City ___________________State _____ Zip ___________ Phone __________________ Fax ____________________ Email ____________________________________________

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Building Your Bench for Succession A gameplan to help your future By Gary Adamson, CPA Thousands of firms are working through the succession and retirement of senior partners and deciding along the way whether or not they can pull it off internally and stay independent. The single most important factor for success is what we see when we look over our shoulder — is the bench of people there to succeed us? It is that simple, but for many firms building that bench has been a daunting task. If you have near term retirements and your bench isn’t up to the task or just doesn’t exist, then you are probably one of the many firms driving the merger and acquisition explosion in the profession. If you have some time to work on it, this article will provide some ideas to help you.

Recruiting Make recruiting a constant effort in your firm, meaning that you are always looking for people, not just when someone leaves. Said a little differently, we should always be looking, and have room, for great people. If you make the commitment to hire more than you need, another very healthy thing will likely happen — you will actually be able to make choices and outplace the weaker players, strengthening the team along the way. We will never be able to do this as well as the Big 4 who historically have accepted (or promoted) significant turnover of their younger staff while watching the cream rise to the top. But we need to do it better. Firms having the best success building their bench almost always have a commitment to grow their own. That means a commitment to a campus recruiting process

and not being afraid to compete with the larger firms. This takes consistency, a campus presence, a social media and web face for the firm, knowing the professors and selling your firm. You don’t have to settle for the second tier of students. Not every top student is destined for a national firm — you can get some of the best if you work at it. Please don’t be cheap — if you want some of the best, don’t let a few thousand dollars stand in the way. I also encourage you to create an internship program in your firm. It is a tremendous way to get a test drive before you actually hire someone. Most schools are now structuring internships that run during tax season. A few points: make sure that you look for interns who you have a reasonable shot at hiring when they graduate; look for multiple year students if you can find them (repeating internships); again, don’t be cheap — you want to pay market or better. Make sure that you have a staff bonus program for recruiting experienced people. You want your team talking to friends about how great it is to work for you and with some “skin in the game” they will be more inclined. The good news here is that the quality of what they send you is generally much better than what you’ll get from an outside recruiter. You want to talk to their friends who aren’t currently looking for a job. These plans are generally for senior positions and above and pay $5,000 or more with half at the time of hire and the other half at some future date, if the person sticks.

Growth and Development If you can fill the pipeline with new hires, how do you grow and keep them? A few ideas that may be helpful: • Do a better job in defining your position descriptions and what it takes to advance to the next level in your firm. Your staff want a checklist – this is not what I am talking about. It is more about the experiences that they have had, the initiatives and leadership they have shown, and the training that they have completed. Try to articulate how your expectations are different for each level, for example a senior over a staff

NOVEMBER 2014 y AZ CPA

ASCPA Technology Conference Dec. 10 Desert Willow Conference Center This conference is developed by K2 Enterprises, one of the nation’s leading vendors in technology, to provide participants with the tools and skills they need to keep up with the ever-increasing pace of changes in computer technology. General Session: Tech Update This update on “all things tech” will help you to capitalize on trends in 2014 and beyond. Morning Breakout Sessions: • Choosing the Best Tools for a CPA Practice • Tech Cookbook - Plain Tech Talk for Your Office • Office 365 – Solving the Puzzle Afternoon Breakout Sessions: • Mobile Device Management - Not Optional Anymore! • Top Accounting Software Solutions • Excel Tables - Database Functionality Comes to Spreadsheets General Session: Windows 8.1 Tips and Tricks In this session, you will learn how to configure and use Windows 8.1 more effectively to improve your productivity, security, and system reliability. Learn more and register at

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person. If you can describe that verbally first, that’s a good start. That will give you the basis to build around in writing your position description. • Make it clear what the career progression is in your firm and what the ladder looks like. Then, if you are like most firms and have people on that ladder who are not advancing (they have peaked out at a particular level and will never be an owner in the firm) be honest with them and with everyone else in the firm. That means tell them the truth – they are not going to be a partner. They probably already know it. As important is that everyone else in the firm knows who is on track and who is not. You will lose younger “stars” who want to move up if they think the ladder is clogged by too many people above them. When I started out in public accounting, I didn’t get much nurturing along the way. It’s different now, and building your bench begins with the new hires. It starts off with “buddies” who are peers

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to help get new staff going, then mentors who are career counselors in most firms, and a newer role that I am starting to see in more firms is the sponsor. A sponsor is a partner who takes a personal interest in helping someone grow into a future owner. It means spending the time and building the relationship to help that person get there. It is identifying one of the “stars” in your firm and taking a personal interest in their success. This is a step beyond mentorship and it takes the right partner to do it. Unfortunately, most firms don’t have enough, if any, sponsors.

Inclusion The college grads that you are hiring today want to be “a part of it.” That means much more than it used to and it is difficult for many firms to meet their expectations. It is more than communication — it is involvement. The Millenials want you to involve them on the front end. They want to be in the know. They want to understand where the firm is going and they want to influence the direction.

Short of putting new hires on the Executive Committee, there are things that you can do to make your people feel more “a part of it.” Here are a few examples: • Most firms are not very good at articulating the firm’s mission and vision. Your staff really does care where the firm is going and they want to be part of a winning team. You need to find opportunities to talk about your mission and vision often and how the firm’s actions and direction are consistent with them. • Put young people on taskforces and committees of the firm. Better yet, form an Inclusion Committee to get their ideas on how the firm can improve communications and involvement with the team. • Create opportunities to communicate with the team, especially from the firm’s management/leadership group. For example, meet with your manager group after partner meetings to keep them informed; hold an open forum lunch for staff with your managing partner a couple of times a year. Building your bench is a big job and it involves several different fronts. For

smaller firms it is much more difficult to devote the resources to get it done. With that said, it is the answer to perpetuating your firm and accomplishing AZ CPA internal succession. Gary Adamson is the president of Adamson Advisory. He can be reached at (765)488.0691 or gadamson@adamsonadvisory.com. Want more information about Succession Planning? Go online and download our E-zine on Succession Plannng at www.ascpa.com.

WORK WHERE IT FEELS LESS LIKE A JOB AND MORE LIKE YOUR FUTURE. If you’re on the fast track for success, opportunity lives in choosing a firm that values talent and understands the desire to grow. Combining the strengths of two well-established, respected CPA firms in Phoenix— Miller, Allen & Co. and Abalos & Associates — under the REDW brand, adds up to both opportunity and growth to energetic and experienced professionals. Find your future. Current career opportunities available now at redw.com/careers

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Classifieds Business Opportunities/ Practices for Sale CPA FIRM SEEKING TO BUY CLIENTS — Established more than 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 Craig today at (480) 990-2727 or email craig@awcpas.com. CPA Firms Seeking to Support Positive Succession Plan — CPA firms seeking flexible succession plan – REDW is a regional CPA firm looking to acquire Phoenix-based CPA practices. Ideal candidates are those firms that provide tax and consulting services to high net worth individuals and businesses with collected billings between $250,000 and $1,000,000 annually and are looking to transition their clients and fulfill a succession plan. REDW provides a flexible succession plan model with opportunity for owners and team members to earn income and participate in REDW benefits. Contact Mike Allen at mallen@redw.com or call (602) 730-3602 to learn more about this opportunity. LOOKING TO RETIRE OR SLOW DOWN? — If you are looking to retire, slow down or part with some or all of your practice, please give us a call. We are a CPA firm in the central valley that has been around for 30 years. We have acquired many accounting firms and have had great results for both the seller and us. We would enjoy speaking to those of you that might be interested in how we might be able to work together and/or transition your firm with ours, please contact robert@azmoneyguy.com. Buyer seeking CPA’s Tax Practice — Tucson — I would like to purchase a CPA’s tax practice in the

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Employment Audit Manager — Terkelsen, Smith, Tyree & Snell, PLC — Audit Manager maintains and manages client relationships and oversees day-to-day operations of audit engagements – including supervision of staff. Must have deep technical experience, and is involved with all aspects of the audit. Also involved with regulatory and accounting issues that arise during audits. Provides leadership in the timely delivery of quality work to TSTS clients. Ideal candidate is proficient in ProSystems & Microsoft Office; possess strong interpersonal and communication skills; also has strong technical knowledge and understanding of GAAP. Bachelor’s required • CPA required • Minimum five years public accounting experience • Agribusiness experience preferred Website: http:// tstscpas.com. Email: TET@TSTScpas.com or fax (928) 343-0648. 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 AND AUDIT PROFESSIONALS – REDW — As one of the largest, full-service CPA and business consulting firms in the Phoenix metropolitan area, REDW provides a broad range of services to a diverse client base. Our rapid growth and increasing demands for our services has created a need for highly motivated tax and audit professionals to join our Phoenix team. Successful candidates will have the opportunity to enhance their technical and professional skills, build and expand client relationships, and learn from industry leaders. If you are looking for a career instead of job and have what it takes, apply at: redw.

com/careers or contact Jessica Taylor at jtaylor@redw.com. TAX STAFF — Henderson Willis Jorgensen, PLC — Rapidly expanding East Valley CPA firm is seeking experienced Tax Staff to prepare business and individual returns. QuickBooks knowledge and experience required. This is an excellent “ground floor” opportunity. Please send resume to gerry@hendersonwillis.com. FULL TIME ACCOUNTANT — North Scottsdale CPA firm providing accounting, tax and consulting services is seeking a full time accountant with at least 5 years Public Accounting experience including experience preparing individual and business tax returns, payroll taxes and sales taxes, as well as servicing and working with business owners. Knowledge of QuickBooks, Lacerte and Excel software a must. Must be a critical thinker, problem solver and detail oriented. Partnership is a possibility for the right candidate. Salary commensurate with experience. Benefits available. Great opportunity for the right candidate! Please email your resume/salary requirement to: scottsdalecpa85260@gmail.com. TAX PREPARER— Les Nesmith CPA/ PFS—Tax preparer needed for Sun City CPA firm established in 1983. Full time for tax season only. Requirements include three or more years’ experience. Knowledge of Trust and Estate tax a plus. Salary DOE. fax (623) 977-9362 or email lesnesmithcpa@hotmail.com. SENIOR ACCOUNTANT – Tull, Forsberg & Olson is looking for experienced CPAs in auditing who enjoy working in a team environment and have excellent analytical and problem solving skills. Please email resumes to kforsberg@ tfocpa.com, for more information see the careers tab on our website at www. tfocpa.com/careers.

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OFFICE SPACE AVAILABLE — Executive Suite type office space available for solo practitioner. We are located in Central Phoenix around 7th Street and Bethany Home area. Parking, receptionist, telephone service, copiers, scanners, break room,

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For information on classifieds, go to www.ascpa.com

PROFESSIONAL SUITE — 16TH STREET CORRIDOR — 2,700 SF of recently renovated suite space. Two large offices, bullpen, conference room, large utility room, server room, storage, reception, and use of bathrooms and break room. Access to Cox or T1. Possibility of shared resources/services with other CPA’s in building. May have furniture available, including cubicles. Jason (602) 850-5110 or Jason@azcre.biz.

In the Black ... Adventures in Accounting So what are you thankful for this year?

Concept: Heidi Frei; Illust.: Jack Gannon

I’m thankful that Game of Thrones starts in 150 days...

And, also that the ASCPA reminded me to renew my CPA license on Nov. 26, since the last day of the month lands on a weekend.

Thank you for your continued support of the ASCPA. Happy Thanksgiving! NOVEMBER 2014 y AZ CPA

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Arizona Society of Certified Public Accountants 4801 E. Washington St., Suite 225-B Phoenix, AZ 85034

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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

28 AZ CPA y NOVEMBER 2014