Insight Magazine - Fall 2020

When D i v e r s i t y Is the Deal

- Uncovering Unconscious Bias in Business

- COVID-19 Fraud: How to Combat Its Rise

- A Roadmap to Records Retention

- Internal Controls in a Remote World

- The Simple Recipe for a Great Firm

ILLINOIS CPA SOCIET Y

550 W Jackson Boulevard, Suite 900, Chicago, IL 60661

www icpas org

Publisher/President & CEO

Todd Shapiro

Editor Derrick Lilly

Assistant Editor

Hilary Collins

Creative Director

Gene Levitan

Copy Editors

Nancy Clarke | Mari Watts | Jennifer Schultz, CPA

Photography Derrick Lilly | iStock

Circulation

John McQuillan

ICPAS OFFICERS

Chairperson

Dorri C McWhorter, CPA, CGMA, CITP | YWCA Metropolitan Chicago

Vice Chairperson

Thomas B Murtagh, CPA, JD | BKD CPAs & Advisors

Secretar y

Mary K Fuller, CPA | Shepard Schwartz & Harris LLP

Treasurer

Jonathan W Hauser, CPA | KPMG LLP

Immediate Past Chairperson

Geoffrey J Harlow, CPA | Wipfli LLP

ICPAS BOARD OF DIRECTORS

John C Bird, CPA | RSM US LLP

Brian J Blaha, CPA | Wipfli LLP

Jennifer L Cavanaugh, CPA | Grant Thornton LLP

Stephen R Ferrara, CPA | BDO USA LLP

Jennifer L Goettler, CPA, CFE | Heinold Banwart Ltd

Scott E Hurwitz, CPA | Deloitte LLP

Joshua D Lance, CPA, CGMA | Lance CPA Group

Enrique Lopez, CPA | Lopez and Company CPAs Ltd

Elizabeth Pittelkow Kittner, CPA, CGMA, CITP, DTM | International Legal Technology Association

Deborah K Rood, CPA | CNA Insurance

Seun Salami, CPA | Teachers Insurance and Annuity Association of America

Stella Marie Santos, CPA | Adelfia LLC

Brian B Stanko, Ph D , CPA | Loyola University

Mark W Wolfgram, CPA | Bel Brands USA Inc

BACK ISSUES + REPRINTS

Back issues may be available Articles may be reproduced with permission

Please send requests to lillyd@icpas org

ADVERTISING

Want to reach 23,000+ accounting and finance professionals? Advertising in Insight and with the Illinois CPA Society gives you access to Illinois’ largest financial community Contact Mike Walker at mike@rwwcompany com

Insight is the magazine of the Illinois CPA Society Statements or articles of opinion appearing in Insight are not necessarily the views of the Illinois CPA Society The materials and information contained within Insight are offered as information only and not as practice, financial, accounting, legal or other professional advice Readers are strongly encouraged to consult with an appropriate professional advisor before acting on the information contained in this publication It is Insight ’ s policy not to knowingly accept advertising that discriminates on the basis of race, religion, sex, age or origin The Illinois CPA Society reserves the right to reject paid advertising that does not meet Insight ’ s qualifications or that may detract from its professional and ethical standards The Illinois CPA Society does not necessarily endorse the non-Society resources, services or products that may appear or be referenced within Insight, and makes no representation or warranties about the products or services they may provide or their accuracy or claims The Illinois CPA Society does not guarantee delivery dates for Insight The Society disclaims all warranties, express or implied, and assumes no responsibility whatsoever for damages incurred as a result of delays in delivering Insight Insight (ISSN1053-8542) is published four times a year, in spring, summer, fall, and winter, by the Illinois CPA Society, 550 W Jackson, Suite 900, Chicago, IL 60661, USA, 312 993 0407

today’sCPA

INSIGHTS FROM TODD SHAPIRO, ICPAS PRESIDENT & CEO @Todd ICPAS

Will You Control Your Future or Will the Future Control You?

To be an organization of the future, you need to be in the future Those are interesting words to live by, but I don’t think the CPA profession has many alternatives Accounting and finance will see significant, if not revolutionary, changes over the next five to 10 years Technology is changing rapidly with the expansion of artificial intelligence (AI), robotic process automation (RPA), and big data We’re also witnessing a changing workforce and, with it, changing expectations as baby boomers rapidly retire and millennials and Gen Zers become dominant in the workplace

We at the Illinois CPA Society have been studying the trends dictating the future, specifically with regards to ensuring the relevance of the CPA profession We’ve looked at the trends mentioned above, as well as those driving hiring at accounting firms, what firms and companies are expecting from their accounting professionals, and who is (and who isn’t) pursuing the CPA credential We’ve previously discussed some of these topics in our Insight Special Feature, “Trust Is Not Enough,” and articles like “Becoming a Firm of the Future ” But what we haven’t yet shared is the outcome of our full-day Illinois CPA Society Board of Directors retreat to discuss all of these trends and more The culmination of our examination to date is the development of our “CPA Profession 2027” outlook, which we hope will serve as a beacon for which we, as a profession, can chart a course to the future We’ll soon issue a new Insight Special Feature with more details behind our outlook, but here are some of our predictions to ponder now:

• Tech takes over – RPA and AI are utilized in every function a CPA performs

• Firms evolve – With audit and tax automated, firms will focus on strategic planning and insight

• Finance evolves – Corporate finance teams will focus on interpreting data to drive profitability

• Workers evolve – The talent pool will be digitally agile, demand greater flexibility, and be socially conscious

• CPA numbers fall – There will be significantly fewer CPAs than in 2019 when there were 650,000

The question firms and finance organizations face now is how to ensure they’re part of the future I’m always struck by the number of prominent Illinois firms that end up being merged into larger outof-state firms The fact is, if we don’t proactively plan for the future, we risk not being part of it I received a call last winter from a firm that asked for help becoming a firm of the future after reading our Insight article Subsequently, we sat down for about 90 minutes to discuss the key trends they’ll be facing That experience got me thinking about how the Society needs to do more than just developing a future vision for the profession We need to help firms and organizations develop strategic plans and roadmaps to become organizations that survive and thrive in the future

Fast forward to the Society’s launch of its new Strategic Planning Service tailored to public accounting firms and corporate finance organizations Using a proven methodology, the Society will work with your organization to develop a bold future vision and strategic roadmap to get you there The day-long process includes facilitated interactive sessions that will help your leadership team reflect on the past, think strategically about the future, and prioritize realistic and actionable steps to move forward together Throughout the session, participants share diverse viewpoints, ask tough questions, challenge assumptions, identify points of insight, and build consensus all with the focus of becoming future ready The outcome is a plan that is strategic, actionable, and achievable Please email me if you’d like to learn more about this new service from your Illinois CPA Society Now, on to the future!

To share your thoughts, email me at shapirot@icpas org or just give me a call 800 993 0407

If CPAs don’t proactively plan for the future, they risk not being a part of it.

LEGISLATIVE INSIGHTS FROM MARTY GREEN, ESQ , ICPAS VP OF GOVERNMENT RELATIONS @GreenMarty

Graduating to a Graduated Tax Rate

Illinois’ voters face a historic decision in a ballot measure amending the state Constitution to introduce a graduated income tax rate.

This November, voters across the U S will make many important decisions about the future direction and leadership of our country, states, cities, and counties But Illinois voters will face a unique decision: whether or not to amend the Illinois Constitution’s Article IX If approved, this amendment would lift the limitations on income taxation and allow the state to move from a flat income tax rate for individuals and corporations to a graduated income tax rate Gov J B Pritzker campaigned on moving to a graduated income tax rate and it has guided his strategic approach in his tenure thus far (For the record, the Illinois CPA Society remains neutral on this ballot question due to the diverse interests of our membership Although neutral, we are available to legislative leaders and their staffs to respond to questions with objective and technical information ) Here’s what to know about this ballot measure:

The History of the Graduated Tax Rate

Illinois’ current Constitution was adopted in 1970 and has been amended 12 times since then The last amendment was approved by voters in 2016 with the approval of the Transportation Taxes and Fees Lockbox Amendment to securitize transportation funds When discussing the 1970 Illinois Constitution, Gov Richard Ogilvie felt that the 1870 state Constitution would not allow for a graduated income tax Instead, he proposed a flat rate for the state income tax, which was passed by the General Assembly The 1970 Constitutional Convention Delegates carried forward the flat rate concept from the 1870 state Constitution which remains in place today

Roughly 50 years later, in 2019, both the Illinois House and Senate passed Senate Joint Resolution (SJR) 1, calling for voters to adopt or reject their proposed amendments to Section 3 of Article IX, which would allow a graduated tax rate The resolution also specifies the wording of Article IX, Section 3 will be changed to read: “The General Assembly shall provide by law for the rate or rates of any tax measured by income imposed by the state ”

At the same time the Illinois House and Senate were passing SJR 1, the General Assembly passed Senate Bill 687 (Public Act 101-0008), which created a schedule of graduated income-based tax rates for individuals, trusts, and estates for taxable years beginning on or after

Jan 1, 2021 The Act also established that corporations would be taxed at a rate of 7 99 percent These propositions for a graduated income tax rate are the ballot measures we ’ re voting on this November and will only be enacted if the ballot measure is approved by voters

The Illinois Constitutional Amendment Act requires the General Assembly to prepare and distribute to the electorate a brief explanation of the proposed amendment and two brief arguments one for the amendment and one against SJR 1 contains this explanation and those arguments, which will be printed and mailed by the secretary of state to each registered voter’s home prior to the general election

The Voters Decide

The General Election will be held on Nov 3, 2020 In order for the graduated tax amendment to be adopted, it must receive a majority vote of the electors voting in the election or three out of five electors voting on the proposed amendment The Constitutional Amendment Act requires the State Board of Elections to certify the election results within 20 days of the election Depending on Illinois voters and the State Board of Election’s ability to certify the general election in a timely manner, the graduated income rate could be effective January 2021

Prior to the emergence of COVID-19, the graduated income tax rate proposal was positioned as a panacea for Illinois’ precarious finances The totality of the lingering economic impact of the pandemic continues to grow, as well as the tremendous impact on state tax receipts As Illinois continues to struggle financially in the wake of the pandemic, it is not certain this ballot measure will be enough to balance the state budget Regardless of the graduated tax outcome, many difficult decisions lie ahead for the governor, the General Assembly, and the voters on state spending, public pension reform, property taxes, and more However, it is necessary to resolve these issues so that Illinois can begin moving forward again

Author’s Note: This column includes my personal observations of the evolution of the legislative environment and are not necessarily the views of the Illinois CPA Society

100% CPA MEMBERSHIP PROGRAM

Arnold, Behrens, Nesbit, Gray P.C.

Baker Tilly

Bansley, Brescia & Co., P.C.

BDO USA, LLP

Benning Group, LLC

Bernard A. Affetto & Co.

Borschnack, Pelletier & Co.

BrookWeiner, LLC

Catalano, Caboor & Co.

The Charneske Group, Ltd.

CliftonLarsonAllen

Coleman & Associates CPA's, Ltd.

Cray, Kaiser Ltd.

Crowe LLP

Cygan Hayes, Ltd.

D Tax People

Daniel P. Vargo & Associates, P.C.

Deborah K. Hannan, CPA, P.C.

Dennis Rose & Associates, P.C.

Desmond & Ahern, Ltd.

Detterbeck Johnson & Monsen

The Dolins Group, Ltd.

Duffner & Company, P.C.

Dunbar, Breitweiser & Company, LLP

Echales, Benjamin & Simkin, LLP

Eck, Schafer & Punke, LLP

FSB&W LLC

Gassensmith & Michalesko, Ltd.

Gilbert, Metzger & Madigan, LLP

Grant Thornton, LLP

Gray Hunter Stenn LLP

GW & Associates, P.C.

Hochfelder & Weber, P.C.

Hoffman & Tranel, P.C.

Holland & Company CPA’s, P.C.

Honkamp Krueger & Co., P.C.

Insight CPAs & Financial LLC

J.M. Abbott & Associates, Ltd.

J. S. Richter, Ltd.

John Kasperek Co., Inc.

John U. Smyth CPA, LLC

Jonker & Associates

Katz LLC

Kirkpatrick & Dahl, P.C.

KPMG US, LLP

Kutchins, Robbins & Diamond, Ltd.

Larry J Wolfe Ltd.

Lauterbach & Amen, LLP

Leaf Dahl & Company, Ltd.

Legacy Professionals LLP

Lerman, Sweeny & Company, LLP

Lipschultz Levin & Gray LLC

Lucas Group

M. A. Cowin, CPA, P.C.

Mack & Associates, P.C.

Mann Weitz & Associates

Marcum LLP

McCullough Rossi & Company, Ltd.

McGreal & Company, P.C.

MichaelSilver

Mueller & Co. LLP

Northshore Professional Group, Ltd.

O'Neill & Gaspardo, LLC

Ostrow Reisin Berk & Abrams, Ltd.

Pasquesi Sheppard LLC

PBG Financial Services Ltd.

PricewaterhouseCoopers, LLP

Romolo & Associates, LLC

Rub & Brillhart, LLC

RubinBrown LLP

Sassetti, LLC

Selden Fox, Ltd.

SKDO CPAs & Advisors

Tighe, Kress & Orr, P.C.

Topel Forman, L.L.C.

Trimarco Radencich, LLC

West & Company, LLC

Whitlock and Associates, P.C.

Wipfli LLP

For more information on how your firm can be part of the 100% CPA Membership Program, please visit www.icpas.org.

*minimum of 2 CPAs

To thank you for your support... of the Illinois CPA Society and the profession, we are pleased to recognize these Illinois accounting firms with 100% of their CPA staff who are members.*

Mindful Technology: A New Approach in a New Normal

In an increasingly digital world, approaching technology with mindfulness is key to both mental health and business success

BY HILARY COLLINS

Youwake up in the morning to your phone alarm, sign into your work laptop, Zoom with coworkers, FaceTime with friends, grocery shop online, stream movies online, and look up recipes online COVID-19 has only accelerated digitization and the use of technology in every facet of our lives Instead of going to Blockbuster, browsing a bookstore, filling a physical shopping cart, or sitting in a small meeting room with clients, we ’ re interacting with technology

That’s why choosing the technology we use and evaluating how we interact with it is so important Amy Vetter, CPA CITP, CGMA, MBA, has combined her expertise in technological innovation and yogic practices to champion a balanced and intentional approach to our online lives that she calls mindful technology

“During COVID-19, we saw many companies going remote in the blink of an eye, and many had no choice but to make knee-jerk decisions to keep the lights on, ” Vetter says “They implemented technology that would allow them to do the work remotely but didn’t have the time to do so thoughtfully ”

So now what? Vetter says now is the perfect time to step back and reassess what we want from technology

“The mindful piece of this is that we need to balance the need for human connection and a positive human experience with efficiency, ROI, and all the practical things we ’ re looking for from technology,” Vetter explains

The truth is that the tactile experience of working with a technology is a very important part of the overall effectiveness of that technology Some technologies may do what they were designed to do while also creating more stress and less fulfilment, which in the long run

can lead to employee burnout, client frustration, and underutilization of the technological tools a business is paying for

Organizations who want to embrace mindful technology can start by building a team to evaluate the technology the organization is using Vetter stresses the importance of listening to all voices and not just the ones that are happy with the current system

“Technology has really changed over the past 20 years 20 years ago you would find a software package, implement it, and walk away, ” Vetter notes “Today, you should focus on continual improvement and fine-tuning If you can make it 10 percent better, that’s great ”

While embracing mindful technology as an organization is an ongoing challenge, individual team members can start immediately by setting healthy boundaries

“In a remote world, it’s important to make room for the things that matter and that rejuvenate us, ” Vetter emphasizes “We should be thinking through our day and putting guardrails around our time and having the confidence to take time for priorities One complaint I hear is, ‘People put meetings on my calendar even when I have time blocked,’ but the truth is, we each have control to decide whether we accept a meeting ”

As technology becomes an integral part of our lives, approaching our digital lives with mindfulness and care should be important to us as individuals and as organizations

“When we put technology in place mindfully, we should see time freed up so we can focus more on our clients, team members, and creating better human connections,” Vetter says

OUR PROCESS: Illinois CPA Society’s interactive planning sessions will help your leadership team:

• Reflect on the past.

•Think strategically about the future.

•Prioritize realistic actionable steps to move forward together.

OUTCOMES:

Walk away with a tailored roadmap to the future that is:

Strategic | Actionable | Achievable

A Roadmap for Records Retention

For firms looking to improve document management, these principles serve as a guide to creating and implementing an effective records retention policy.

BY ANNIE MUELLER

ecords retention may not be the most glamorous area of professional service firm management, but what it lacks in glamour it makes up for in importance The cost of poor documentation, missing records, or regulatory write-ups can be massive A single missing contract, spreadsheet, or email can turn into a messy mistake In fact, poor document management was identified as one of America’s most broken business processes in a 2018 study by Nintex where 49 percent of respondents identified locating documents as a key problem in their organizations

Since records management is integral to successful firm management, it pays to do it well Consistent and secure records retention is essential not only for a firm’s well-being, but also for the well-being of its clients

THE RISKS OF RETENTION DEFICIENCIES

For their own sake, firms must be able to prove exactly what services were provided and actions were taken For their clients, firms may be a source of documentation to help solve business,

legal, or tax disputes Clients should be advised that records are retained on a schedule, preferably in the annual engagement letter, and that they are responsible for keeping their own records independently and securely

Of course, some records have no expiration date “Typically, estate planning documentation, like wills, trusts, gift tax returns, partnership agreements, and life insurance policies, are deemed to be vital records and should be retained permanently,” cautions James A J Revels, a Philadelphia-based CPA and member of the American Institute of CPAs Personal Financial Planning Executive Committee “If a firm is going to destroy estate planning documents, they should return the files to the client, or at the very least inform the client of the scheduled destruction date and provide them the option to object ”

However, sound records retention does not mean serving as document storage for clients There is no point and a lot of risk in retaining records unnecessarily After all, document storage, whether paper or electronic, comes at a cost, and organizing and

accessing documents becomes more complex and challenging as the number of documents increases And, as Revels says, “The potential for professional liability can be a danger in maintaining records too long ”

One possible risk of holding certain documents indefinitely, or just too long, is creating a bigger honeypot for potential hackers, notes Brian Daly, CPA, a sole practitioner with Bottom Line Solutions Ltd and a member of the Illinois CPA Society’s Taxation Practice & Procedures Committee “If the firm realizes a cybersecurity breach, additional data could be available to criminals which exposes the firm to potential liability The rule of thumb here is to keep records as long as necessary but not any longer,” Daly says

Thorough records management, then, is not just about keeping records A sound records retention system has three key components schedule, policies, and storage and once these components are in place, consistent implementation

A CLEARLY COMMUNICATED SCHEDULE

For the records retention schedule, every document is sorted according to class, and each class has its own timeline for retention Some classes are retained indefinitely Others, such as 1099 forms or payroll tax returns, have minimum standards for retention “The firm should determine the type of services that were provided that relied on general financial documentation This will assist in determining the length of time this type of documentation should be maintained Typically, this documentation is kept for six years, ” Revels says Firms which focus on a few specialty services will quickly become familiar with the classes of records they handle most of the time Firms with a wider variety of services and clients may need a broader range of classes

For records which do not clearly fall into a primary records class, research is the only route “Typically, records that are not deemed to be vital should be maintained for 10 years However, various states have different laws and regulations so legal counsel may prove helpful,” Revels notes “Consulting with an attorney to consider the state guidelines related to the statute of limitations is very important in creating a records retention plan ” For firms with clients in multiple states, this can become increasingly complex further reason to speak to an attorney

There is no cookie-cutter data destruction schedule “Each firm may have a different need depending on its client makeup, the services it provides to its clients, and state requirements The firm should contact its professional liability insurance provider and an attorney familiar with these issues for input on the design of the records retention policy,” Daly explains “A schedule could have different dates or a keep-it-simple approach choosing the longest required date across the board for ease of management The point is to have a schedule and adhere to it ”

CONSISTENT AND STRAIGHTFORWARD POLICIES

Firm-wide policies for how documents are named, stored, organized, and accessed keep the system functional Policies should be crystal clear and consistently applied Even smaller firms benefit from documented policies: the fewer hours spent deciding on or explaining how to keep records, the more hours spent on helping clients

A formal naming convention for all records maintains document organization and ensures that all firm members, present and future, will be able to locate needed records Firms should also ensure

that the final version of the document is retained and timestamped Timestamp any other document versions retained to maintain a clear timeline of how the record evolved

These days, many firms rely on paperless records retention exclusively, but some firms retain paper and digital versions of key documents Designate whether electronic or paper versions of records are to be maintained For records with an expiration date, detail each step, including client notification, server erasure, shredding, and use of outsourced document services Daly notes that a certificate of destruction should be obtained if a third party is used for this service

SAFE AND SECURE STORAGE

Since paperless document storage is now standard business practice, the sheer physical space required to maintain records is no longer the issue it used to be However, digital documents still require server space and come with their own set of security considerations Fortunately, there are numerous digital document services which provide servers and security with cloud-based access for firms Firms with in-house IT personnel may prefer to create their own digital storage system: it’s more customizable and may be more budget-friendly over time For smaller firms without an IT expert on hand, an all-in-one digital document management service may be best

“When considering service providers, make sure they maintain policies and procedures that comply with industry regulations Data should be encrypted, and consideration should be given to who is granted permission to access documents and more importantly, who has actually accessed the documents,” Daly says

It’s wise to give special consideration to how firm members deal with email “Some firms have been injured in the defense of professional liability claims and may maintain a separate retention policy for emails,” Revels says “Electronic documents should be stored in client files and not just kept as an attachment to an email Likewise, emails that provide vital information should be saved in the client’s engagement file ”

EFFECTIVE IMPLEMENTATION

Once the organization has created a schedule and policies, set up a storage system, and consulted with an attorney, the final step is firm-wide implementation Inform employees of the schedule and policies It’s a good idea to create “cheat sheets” that serve as guides and easy reference points

It’s also important to appoint accountable staff members to oversee implementation and education in various areas of the firm These people will also act as knowledge hubs to help answer any complex questions employees may have about records retention going forward These in-house experts should schedule regular meetings to identify and solve issues, maintain consistency, and update the records retention system as needed over time

Records retention may not be particularly exciting, but it is foundational to every firm Ensuring your firm’s system is secure, effective, and up-to-date is key to remaining a trusted and relevant resource to your clients

If you need a cheat sheet, check out the one compiled by the Illinois CPA Society’s Tax Practice & Procedures Committee at www icpas org/recordsretention

Internal Controls in a Remote World

As remote work takes hold at CPA firms and organizations, getting a grip on internal controls is essential for overcoming the security risks of an at-home workforce

BY NATALIE ROONEY

efore COVID-19, working from home full time was the exception rather than the rule According to a June 2020 survey by IBM Security and Morning Consult, 83 percent of respondents said that prior to the pandemic they worked from home either rarely or not at all In face-to-face, pre-pandemic office settings, employers and IT teams managed, implemented, and monitored security measures and protocols from a central location Now those systems are upended

“Managing internal controls in an office setting is one thing Managing internal controls when everyone is working from their kitchen tables is another thing altogether,” says Bob Dohrer, CPA, CGMA, chief auditor for the AICPA

As pandemic concerns remain high, many workplaces plan to continue remote work into 2021 and beyond, and organizations may find themselves playing catch-up as they try to manage potential security risks in a world where in-person oversight is impossible and traditional controls are ineffective The pandemic has exacerbated the usual risks, with remote work, furloughs, and

layoffs all creating new weaknesses “Suddenly there may be fewer people available to process financial transactions, and that creates pressure, ” Dohrer says “Combine all of this with issues surrounding the segregation of duties, and teams that aren’t interacting in a live setting, and problems can develop quickly Controls designed for the office just don’t work as well in a virtual environment We have a new level of consideration that has to take place ”

If you haven’t revisited your internal controls lately, now is the time, says Jenny Deloy, CPA, MBA, Marcum LLP’s Chicago office managing partner and Illinois region partner in charge of assurance services “Change, anxiety, and uncertainty are creating an environment where fraud proliferates, and fraudsters are out there with new scams to convince people to do things they wouldn’t normally do,” she explains

As a result, companies need to be very aware of the steps they can take to avoid the opportunity for fraud, advises Elizabeth Sloan, CPA, managing director in Grant Thornton’s Chicago audit methodology and standards group: “Since we ’ re not all physically

together, we need to think about the basics What changes have occurred to the control environment because of remote work? We need to be sure we ’ re thinking about the right things and not becoming complacent ”

Here’s how to ensure your internal controls remain relevant in a remote environment

TEN STEPS TO DEVELOPING ROBUST REMOTE INTERNAL CONTROLS

Step zero, Sloan says, is to embrace the change: “Think of this as an opportunity to improve and build a more effective structure of internal controls rather than just having an interim structure ” After that, take these steps:

#1: Reexamine segregation of duties Look for gaps or dead ends in workflows created by virtual work How might duties need to change or be restructured? If signoffs were previously handled manually, how are they handled now? Has there been a loss of checks and balances?

#2: Take advantage of technology. Use secure portals to transmit documents, leverage the cloud, and embed timestamps on files to tighten security

#3: Track, document, and confirm. These steps are so basic that they’re often overlooked, Dohrer says Reach out to the information sender Confirm they sent it, and it’s what you received Track and document any changes made to approval levels, access rights, procedures, or responsibilities

#4: Know your data. What data do you have? Who can access it? Verify that data, including something as simple as a videoconferencing link, is not publicly accessible or open to more internal access than necessary

#5: Find new lines of communication. “Casually passing someone ’ s office used to spark conversations,” Deloy says “Now that you ’ re not in front of someone, you might not hear about problems Initiate conversations on a regular basis and in a collaborative way Make sure you ’ re on the same page and pursuing the same goals ” Consider checking in daily with your team and using video more often than telephone or email

#6: Assess cyber risk. IBM’s report found that fraud has risen dramatically since March “Cyber risk assessment is crucial right now, ” Deloy cautions “Provide teams with training and awareness of cyber-related matters so they recognize current scams ” Now is a good time to confirm your IT systems are in place and working securely and that proper passwords, encryption services, and multifactor authentication are in place

#7: Get leaders involved. “Those charged with governance need to remain visible to employees, particularly in the accounting function,” Deloy stresses She suggests using live video for meetings “Your team needs to see leaders involved, monitoring, and supporting positive behaviors People want to do the right thing Provide the support they need to do so ”

#8: Draw attention to ongoing monitoring Continuously discussing processes demonstrates to team members that someone is always assessing the situation, and that can be a real fraud deterrent “If someone is considering bad behaviors, just knowing someone is watching is helpful, even if they’re watching from home,” Deloy says

#9: Remember the human element. Don’t forget about the people behind the processes “Make sure team members are engaged and not burned out,” Sloan recommends “Working virtually in a

pandemic means the opportunity and pressure to potentially commit fraud are already there If people lose their engagement, they can easily rationalize things they usually wouldn’t do ”

#10: Communicate with your clients. A review of internal controls presents a perfect opening for firms to reach out to clients “Help them think about these matters within their organizations, because their attention is definitely elsewhere,” Deloy urges “Take advantage of this opportunity to advise, guide, and help your clients revisit, refresh, and improve their internal controls ”

DIFFERENT CAN BE BETTER

Do you really need to think about internal controls differently in a virtual world? Yes Do organizations need to panic? No Remember: The fundamental principles don’t change “You don’t need to adopt a new framework and change everything,” Dohrer says “Think about a control objective in the manual world, and then consider how that can be accomplished in the virtual world Most businesses and auditors will find that a good understanding of fundamental principles will go a long way in this environment ”

Rather than dragging organizations down, virtual work and rethinking internal controls and processes should be propelling organizations forward, Sloan suggests “At Grant Thornton, we ’ re focusing on quality and are working smarter by utilizing more advanced data Examining data analytics has allowed us to be more precise and to home in on specific risks,” she shares “From a technology perspective, remote work has helped us improve our communication and use more tools to facilitate collaboration We’re not just doing what we ’ ve always done Even when we ’ re back in the office, we won’t go back to the way things used to be ”

IS THE NEW NORMAL

Fraudsters are taking advantage of the upheaval and anxiety of the COVID-19 crisis—here’s how to protect yourself and your organization.

BY CAROLYN KMET

In the age of COVID-19, fear, desperation, and uncertainty are fueling fraud in every sector public, private, and government and anyone can be a victim According to the Federal Trade Commission, Americans have lost more than $77 million in COVID-19-related fraud Just within the past six months, there have been several highly visible hacks: In April, hackers infiltrated the U S Small Business Administration, gaining access to the personal information associated with nearly 8,000 Paycheck Protection Program applicants, including Social Security numbers, addresses, and phone numbers In June, hackers used malware to extort $1 14 million from the University of California, San Francisco And in July, hackers hijacked the Twitter accounts of Barack Obama, Joe Biden, Bill Gates, Elon Musk, and other prominent figures, leveraging their followers to net almost $116,000 in bitcoin

“When there is a major change in business like the current pandemic, typically we see an increase in external frauds being reported,” observes Illinois CPA Society member Sean Kruskol, a principal at Cornerstone Research, an international economic and financial consulting firm “Recent reports of layoffs and furloughs across multiple industries have led to a rise in the number of unemployed and potentially disgruntled individuals, as well as frustrated employees, who may now have the motive and time to commit fraud ”

Fraud in the Workplace

The fraud triangle, a model created by criminologist Donald Cressey in the 1950s, remains relevant today The triangle explores the circumstances that motivate fraud: opportunity, pressure, and rationalization Cressey believed that for fraud to occur, all three elements must be present

“When we look at the fraud triangle, the current pandemic exacerbates two of the three sides: pressure and opportunity,” Kruskol says “The perceived pressures and opportunities to commit fraud are encountered on a daily if not hourly basis ”

The financial pressures on organizations and individuals due to COVID-19’s economic impacts have become crushing

Unemployment and unrest have seen historic highs Cash flows have slowed to a trickle The pace of business has turned to a limp Established, dependable processes have been completely

upended With no visible end to our current uncertainty, many business owners are desperately struggling to make ends meet This pressure builds and builds, and eventually engulfs the business’ suppliers, employees, and partners, continuing the cycle

Today’s environment also exponentially increases the opportunities for fraud Given the almost instantaneous abolishment of standard operating procedures, businesses are scrambling to rebuild internal checks and balances in a remote environment A dispersed workforce and the absence of centralized oversight combined undoubtedly create an environment ripe for fraud

“With more remote work arrangements and fewer face-to-face interactions, the lack of human interaction could lead certain individuals to feel more anonymous With an increased level of anonymity comes an increased perception that they will not be caught,” Kruskol explains “Some people need routine to hold them accountable Some people need other people to hold them accountable The current pandemic has altered those systems of accountability ”

The combined presence of opportunity and extreme pressure can lead to rationalization, the third element in Cressey’s fraud triangle Justifying fraudulent activity in today’s environment comes easy: I need to provide for my family; I’ll pay it back later Or: I pay taxes every year, and I just need to pay my bills I deserve the help

Unfortunately, regardless of the urgency of need or the intent, fraud is still fraud “It may be harder for employees to resist the temptation to sell confidential information or access to internal systems, particularly if the pandemic has reduced their household income or the future of their position is in doubt,” observes Stephen Cobb, an independent security and risk management researcher “Ironically, employees may have greater system access in order to work at home during the pandemic, and home is an environment where norms of behavior may be less of a deterrent to criminal activity ”

Victims of Fear

Fear of the unknown operates as both motivation and hook, not only driving people to commit fraud, but to be more susceptible to fraud themselves

“Fraud thrives on the effects that a disruptive phenomenon like a pandemic can produce: urgent need, suffering, fear, economic stress, resource diversion, and regulatory distraction,” Cobb notes Cobb has seen increased incidences of fraud during other times of disruption, such as wars, terror campaigns, and recessions “The financial pressures of the Great Recession led some people, who in less stressful times would know better, to fall for get-rich-quick schemes,” he says

Today, those get-rich-quick messages might be replaced with miracle COVID-19 cures or free antibody tests By playing to people’s fears, scammers are able to pocket some cash or obtain personally identifiable information, such as names, birth dates, and Social Security numbers Personal information can then be used for further defrauding: This July, the FBI reported a spike in fraudulent unemployment insurance claims involving the use of stolen information

“The pandemic is creating uncertainty, and uncertainty is fertile ground for fraud,” says Aviram Jenik, CEO at Beyond Security, a global provider of network and application security solutions “What outrageous or unbelievable things have we heard in the last six months that ended up being true? Each time that happens, we

gradually condition our brains to accept outrageous claims as possible truths, which makes it easier to fall for fraud ”

Businesses are no less susceptible to these hoaxes The pandemic has forced many businesses to change their focus from excellence to survival For example, the rapid breakdown of supply chains triggered widespread shortages across multiple industries and regions As businesses scrambled to identify new suppliers, corners were cut and acceptable standards lowered in favor of a quick solution Many companies placed orders for masks and other personal protective equipment from unknown suppliers that either sent defective products or pocketed the money and sent nothing at all

Supply chains aren’t the only system that’s suffered under COVID19 Workflows and internal controls have also been compromised

“Companies have been forced to recreate entire business processes and related workflows When the pandemic hit, some organizations were prepared for a virtual working environment Others were thrown into it without careful transition of the internal controls that once protected these business processes, ” Kruskol explains “For example, signatures for the review and approval of account reconciliation may be electronic now Unless a verifiable and secure control is in place for signoffs, the risk of forgery via copying and pasting an electronic signature is increased ”

Fraud Inside and Out

Clearly, in this environment both internal and external fraud are rampant Perpetrators of internal fraud can be low on the totem pole or high in the C-suite, including employees, managers, officers, and owners of the company Jenik says that today’s remote work environment only exacerbates the potential for fraud “We have sixfigure financial transactions that need to be done from home, where the CFO handling the transaction is unable to walk over to the relevant manager to confirm the transfer face-to-face,” Jenik explains

In other situations, internal employees might submit false or inflated invoices, issue payment for fictitious goods or services, or contract with shell companies Expense reports with claims for personal purchases can be tampered with

Jenik advises companies to revise their policies and update their protection strategies under the assumption that the current situation is permanent, or that it will at least last for many more months “This means putting in place additional channels for verification to replace the foolproof face-to-face conversation,” Jenik says He suggests that email requests should be confirmed by another communication method like chat or phone call; any critical process should have additional authentication and verification steps; and all information should be considered in-question until proven

Financial pressure or uncertainty can also drive employees to falsify timecard data and alter the number of hours worked Data can be used to detect these situations as well Running a simple trend report to spot spikes in hours worked or pay received would help identify employees who might be taking advantage of the system

Companies are also vulnerable to fraud instigated by external players With less effective monitoring in place, and cybersecurity diffused across home offices and personal devices, hackers have more opportunities to gain access to corporate networks

“Companies need increased cybersecurity vigilance in order to combat the many new opportunities hackers might take advantage of thanks to remote work,” says Darren Deslatte, vulnerability

operations leader at Entrust Solutions “Telework increases the number of possible endpoint devices, such as laptops or routers, that cybercriminals can use as entry points into an enterprise’s network In addition, many employees do not have the same cybersecurity measures set up in their homes as their company may have implemented at their office ”

Deslatte urges companies to ensure that all employees, regardless of whether they work in IT or not, are trained in basic cybersecurity methods “These staff trainings should include how to encrypt WiFi routers, how to identify and report phishing scams, and how to create strong, unique passwords for all accounts,” Deslatte advises Phishing scams have also intensified as of late, with Google reporting more than 18 million daily malware and phishing emails related to COVID-19 over the course of a single week

“In many cases, scammers will pose as someone you trust, whether that be a family member, your bank, a government official, or a company you purchase products or services from,” explains Todd Kartchner, an attorney and director of business litigation with law firm Fennemore Craig PC “And while each category of fraud presents its own unique challenges, in nearly every instance fraudsters are seeking either money or personal information You should automatically be on your guard when asked for either one ”

Kartchner advises that anyone receiving a strange or unexpected request from someone they know should contact that person directly through another channel to verify the request “If you ’ re feeling pressured to make a decision in a hurry, that’s also a red flag Scammers want to pressure you into acting quickly If you ’ re feeling pressured, slow things down,” Kartchner says “Look the company up online to see what you learn If nothing else, talk to a friend or family member to gain their perspective The more time you take to think something through, the more likely it is that you’ll be able to spot problems with what you ’ re being told ”

Both internal and external fraud are fueled by fear, and so it behooves businesses to assuage employee fear through open communication channels and clear strategies “The tone at the top during these trying times is key,” Kruskol advises “Management’s message should be one of solidarity and a shared sense of responsibility for getting through the pandemic and its aftermath ”

After all, fraud may be the new normal, but with clear heads and a spirit of camaraderie, we can leave the fraudsters empty-handed

When Diversity Is the Deal

Planning for the growth, sale, or succession of any accounting firm is challenging, but minorityowned firms require special attention to future leadership, mission, and cultural preservation years before decisions get made.

BY LISA WILDER AND HILARY COLLINS

What’s next for your firm? At some point, every firm leader must make that decision whether it’s about how to grow or who will take the reins next Mergers, acquisitions, and succession planning take on new dimensions and only grow more challenging when the firm is diverse, minority-owned, and hoping to maintain its unique culture

For Kimi Ellen, CPA of Benford Brown & Associates, caring about diversity is just a part of who she is During her time at a Big Four firm, she met her future business partner, Alyssia Benford, CPA They bonded over being the only Black people in the room

“That firm was just not interested in recruiting from places with diverse students,” Ellen says “So I actually changed that for them ” Ellen went to HR and told them that being the only Black person in the room was challenging and that she was sometimes put in uncomfortable situations when her peers didn’t recognize her ethnicity

“They asked me where they could find more diverse students,” Ellen says “I took them to the National Association of Black Accountants conference and showed them how to recruit there The next starting class had 13 new Black hires That was all because I wasn’t afraid to use my seat at the table We always say, if you don’t have a seat at the table, you ’ re on the menu ”

Ellen and Benford left that firm and started their own in 1996 They created the name to sound more like the older white men who dominated the profession at the time “Her maiden name was Lee and of course my last name is Ellen,” Ellen laughs “When people think of firm partners, they don’t think of two Black women in their twenties We came up with the name Benford Brown & Associates to kind of get our foot in the door ”

In the 24 years since, their firm has thrived, adding a third partner, Tim Watson, CPA, whose father was one of the first 100 Black CPAs, opening a satellite office in Bolingbrook, Ill and specializing in audits, landing major federal clients

Building a Business From the Ground Up

Like Ellen and Benford, when Enrique Lopez, CPA founded his firm, Lopez & Co , in 2007, he knew diversity would be woven into every element of the culture

“Since I founded this firm, it’s grown to a team of seven, ” he says “What makes us unique is that we ’ re not just diverse in the makeup of our staff, we ’ re also very diverse in the clients we serve and the business we pursue Obviously, with most of us being of Latino background, we have the ability to connect with clients who speak Spanish or share our culture But being diverse is also being open-minded and knowing that mainstream America is the biggest market ”

Edilberto Ortiz, CPA also knows the benefits of a small, diverse firm with a warm culture He emigrated to Chicago from the Philippines and founded E C Ortiz & Co in 1974, eventually building the firm into a team of more than 40 staff members, including 11 CPAs Ortiz’s firm has served closely-held business clients in addition to providing financial audits, single audits, and compliance examinations for state government for the past 30 years Over that time, the firm has built a “family environment” that Ortiz didn’t want to lose as he received offers over time

This June, he accepted an offer from New York-based Roth&Co The expanding East Coast firm will allow Ortiz’s team to stay in place and be able to invest more in technology and professional development, while giving Roth&Co a chance to gain a market in the Midwest

Ortiz adds that many minority firms have niches and relationships on the ground that expanding firms can benefit from “All these years, I’ve been looking for a firm I wanted to buy, but we were able to secure no change in leadership and continue doing the same thing we are supposed to do,” Ortiz says, who will stay with the firm

The State of Diversity

Minority-owned firms with specialized experience and diverse teams will be attractive in a consolidating CPA industry where mature leadership is getting closer to retirement A landmark 2014 Global Accounting Alliance report noted that about half of all U S CPA firms would likely lose at least one partner or principal to retirement over the next five years

Diverse firms with deep experience might find themselves in an attractive position as a result, says Dan McMahon, CPA, managing partner of Integrated Growth Advisors, which assists accounting firms with expansion and succession plans

Being able to demonstrate hiring and promotion patterns for diverse teams will increasingly be a plus that majority- and minority-owned firms can take advantage of either independently or with partners “It’s all about building a more competitive and valuable firm,” he says “Over the course of my career, I’ve learned that public accountants truly do serve the unique communities they work within That’s why you ’ re a certified ‘public’ accountant And, for this reason, it’s important to be reflective and representative of the communities we ’ re part of ”

According to the AICPA, in 2018 minorities represented 29 percent of all professional staff in public accounting firms, a significant jump from 1995’s 8 percent And today more than half of all accountants and auditors are women, according to a June 2020 report by Catalyst Additionally, people of color made up close to half of graduates with accounting degrees, according to that same report, with 41 percent earning bachelor’s degrees and 46 percent earning master’s degrees But this increasingly diverse workforce has not yet made it into firm leadership

When senior firm leaders start thinking about M&A or succession planning, McMahon says preserving or increasing team diversity is more than a deal point: It’s simply a good business idea Yet he notes that the industry still needs to make significant improvement in minority recruitment in firms large, small, and independent According to the AICPA, 84 percent of CPAs employed by CPA firms in 2018 were white, as well as 91 percent of the partners “We have a long way to go in bringing diversity to leadership roles in the profession,” he stresses

For minority-owned firms, it’s not about bringing diversity to leadership roles, but maintaining it Leaders of diverse firms have to keep diversity in focus in every strategic decision they make

Planning Ahead

Ellen sighs when asked about how she wants to hand her firm off “I think about that every day I literally have a 20-year plan starting this year, ” she says “I’m watching some older firms who are just not handling it well I’m really focused on grooming my team and growing the next generation, but I’m open to a merger if it’s right ”

For diverse firms who are looking to maintain what makes them unique as they expand, grow, and possibly sell or merge, it’s essential to have a clear vision for the future Like Ellen’s 20-year plan, Lopez says it’s important to have a vision for how your firm will be marketable in the future

“In five, 10, 20 years, what advantages are you going to have? For us, we ’ re a diverse firm and beyond that, we ’ ve found our specialties and really pursued those Rather than becoming okay at a lot of things, we ’ ve focused on being really good at a few things,” he explains

How should a leader at a unique firm like these approach succession planning or a sale or merger? “Start thinking about it when you start the business,” says Maria Prado, CPA, co-founder of Chicago-based Prado & Renteria The story of the founding of her firm is similar to Ellen and Benford’s Prado and her business partner Hilda Renteria, CPA were college friends at the University of Illinois at Chicago and decided to form their partnership early in their careers while working in the audit department at the First National Bank of Chicago (now part of JPMorgan Chase) The firm, at its 30-year anniversary, now has a staff of more than 25 that serves private companies, government agencies, and nonprofits “Some of the work we love to do best are the challenging projects, working with organizations in the middle of change who may have had changes in their accounting staff,” Prado says “We can support them and put the puzzle back together in a way that will give them greater confidence in their financial stability ”

But Prado laughingly admits that she and Renteria didn’t exactly take their own business advice when they started their firm, and the deep succession discussion they’re having with their team that takes everything they’ve built over the history of their firm into consideration is a puzzle that’s still a work in progress

“We’re examining how we can distinguish ourselves, not just for our external clients, but for our internal team,” Prado explains “Because one of the characteristics that’s really important for us to maintain is our corporate culture, which includes continuing the focus on team leadership development, creating internal and external trust-based relationships, and achieving outcomes as a result of integrity ”

Growing and Grooming the Firm

For minority-owned firms, planning for the future while retaining what makes them unique can be a challenge

Lopez says that developing internal talent at his firm has been incredibly rewarding for him and is his first choice for firm transition when he retires “I love developing my own people I love seeing them grow and achieve their ambitions and goals, but I also remain open to outside opportunities,” he says

“To really grow, you can’t limit yourself to people who share your cultural background,” Lopez admits “Don’t close your eyes to the diversity that’s outside of your heritage Don’t get too comfortable in that place Diversity means being truly open to other groups that you ’ re not so comfortable with and learning more about them That will give you a wider appeal ”

That “wider appeal” could be critical in the future “There’s going to be more consolidation, more acquisitions and mergers in these next few years, ” Lopez predicts “I’m open to that I don’t want to limit our potential ”

Like Lopez, Ellen is extremely focused on growing her practice and expanding into new areas that will make her firm extremely desirable to potential buyers “I have a strategy that touches a lot of different areas in the hopes it will grow my practice into something really great when it’s time for us to exit,” she says One aspect of that strategy is developing the next generation in and outside of her firm “I didn’t have a mentor when I was coming up in the profession, so I really focus on growing the next generation of Black accountants,” Ellen shares “I talk to young CPAs and tell them to go and get all the experience they can now and come back in 10 years and maybe we can talk about you buying my practice I don’t want to die at my desk!”

On a serious note, Ellen says her team is committed to only merging if the relationship is right They have entered serious discussions about merging with other Black-owned firms several times over the years, but it’s never been a good match “I think you have to be very thoughtful about M&A and make sure the culture is going to mesh,” she says “One of the most important things for diverse firms facing M&A is knowing when to say no ”

UNCOVERING UNCONSCIOUS BIAS IN BUSINESS

Finding ways to uncover and combat implicit biases is the only way to build a diverse, inclusive, and successful organization in today’s business world.

BY CASSANDRA MORRISON

Evolution has left the human body with parts that no longer serve it like the appendix, embryonic tails, and tonsils Some of these features evolve out of existence over time; others are removed with a minor surgery Similarly, evolution has also left the human brain with instincts that were necessary for survival for centuries but are no longer useful and can often be harmful like bias

Quickly categorizing things, people, and situations was vital to early humans They relied on their ability to make near-instant decisions about what was safe and unsafe to distinguish the footstep of a friend from a foe in the blink of an eye, faster than they could logically respond And today, we still have that instinct for knee-jerk judgment Our brains can only consciously process around 40 items per second, but as many as 11 million unconsciously To cope with this overload of information, we sort through these millions of factors using shortcuts our brains have developed over time Additionally, research has found that we ’ re more likely to make biased decisions when we make those decisions quickly findings that have serious implications for today’s rapidly evolving business world

By unknowingly allowing our unconscious biases to influence our fast-paced decision-making, we end up excluding certain groups, perpetuating certain stereotypes, and relying on faulty reasoning to make important choices It’s only by committing to uncovering and combating our unconscious biases, personally and in the workplace, that we can interrupt these mental shortcuts and make better, more equitable decisions

“If You Have a Brain, You Have a Bias”

Implicit biases are different from explicit biases in that we know our explicit biases exist, but our subconscious holds many biases that we may not be aware of, spanning race, gender, appearance, age, wealth, and much more Implicit biases can be more damaging than explicit biases because they often influence our decisions without our knowledge These insidious attitudes impact the workplace in many ways: From job listings to performance reviews to promotions, implicit bias pervades the decision-making process

“If you have a brain, you have a bias It’s human Our brains are hardwired to take shortcuts and bias is a form of helping us make those shortcuts Bias is a threat protector,” explains Michele MeyerShipp, Esq , principal and chief diversity and inclusion officer at KPMG “It’s real and we have to take steps to interrupt it ”

To interrupt and unlearn these biases, first we must acknowledge they exist and can impact anyone Defensiveness often creeps into conversations about ageism, sexism, or racism, but many who don’t consciously hold those views can still be influenced by them When it comes to unconscious bias, it’s important to lead the conversation to a place that acknowledges that everyone has biases implicit and explicit and it’s what we do about this fact that matters

Diversity and inclusion expert Gregory Tall, MBA, leads workshops and conferences to encourage this openness and communication

“The hard part is no one ever wants to be called out no organization wants to be accused of being biased against anyone, ” he explains “So, it starts with asking how we get everyone feeling comfortable enough to engage in an uncomfortable conversation, how we get them to the table, and how we get to the real action ”

Biases That Block the Door

Most experts agree that recruitment offers the most transparent accounts of bias in the workplace, from the wording in job descriptions to the filtering of resumes based on names Tall saw this a lot during his time in human resources “A job posting encouraging 'recent grads' to apply might be coded language

suggesting younger candidates are preferred Bias tends to operate covertly One study showed that job applicants with traditionally White-sounding names were 50 percent more likely to be contacted for an interview than applicants with traditionally African-American-sounding names, ” Tall adds

Learning more about the types of biases helps identify and interrupt them A 2019 study by Korn Ferry found the financial market has the highest percentage of women in C-suite positions with 31 percent When almost 70 percent of leadership in the financial sector is made up of men, the affinity bias can explain why it’s difficult for women to reach the C-suite in this sector and others: Those who are in charge of these decisions are drawn to those most similar to them

Meyer-Shipp says that affinity bias is one of the most pervasive forms of bias that she sees show up on a day-to-day basis “It shows up all of the time and it's not just the type of bias that happens around race or gender,” she says “For example, in a job interview, you form these points of affinity, points that you find you have in common with an interviewee, so that before you know it you ’ re halfway through the interview and you ’ re like, wait a minute, we haven’t even talked about the job ”

Besides affinity bias, research has uncovered many biases women face in the workplace, making it more difficult for them to enter organizations and ascend at the same rates as their male peers Joan Williams, JD, a 40-year veteran researcher and founding director of the Center for WorkLife Law at the University of California Hastings College of the Law, has spent her career exploring the interplay between work, class, and gender

“Many claim that the wage gap between men and women stems not from discrimination, but from the fact that men negotiate their salaries whereas women don’t,” Williams writes in “Double Jeopardy? An Empirical Study With Implications for the Debates Over Implicit Bias and Intersectionality,” published in 2014 in the Harvard Journal of Law and Gender “But a deeper look at the ‘ women don’t ask’ literature reveals a study that finds that when

women do negotiate their starting salaries, they are seen as less likable and they are less likely to be hired I suggest that the reason women do not ask is that they correctly sense that they will be penalized if they do ”

Williams calls this bias, where women are punished for behavior that men are rewarded for, “the Tightrope ” She also notes that women face a bias she calls “Prove-It-Again!” where women must show more evidence of competence than men to be seen as equally competent Black women face the Prove-It-Again! bias to an even greater degree

With such barriers to entry for women and other minorities, unconscious biases can effectively block the door at any organization For a workplace hoping to overcome unconscious bias, identifying types of bias and being able to recognize their impact is a good way to start correcting course

uncovering unconscious bias

Addressing the systemic issues behind biases is not easy Historical examples and research have shown that systems that hold minorities down do not disappear without deep, complex work and long-term commitment

“A one-shot bias training is a good start, but it is not a solution Systemic biases are built on unfair systems and cultures You can’t change culture by doing something once, right? That’s not how cultural change works,” Williams says

This is why Williams has developed the open source website biasinterrupters org, which offers free toolkits to help organizations evaluate their systems and implement small changes “Bias interrupters” are tweaks to basic business practices, like hiring, performance evaluations, assignments, promotions, and compensation, that combat implicit bias in the workplace

“If a business had a problem with sales, leaders would not just have these deep conversations about how much they care about sales, they would look at the evidence,” Williams says “They would see where things are going wrong and why sales are falling off and try

everything until they met their goals Why don’t we do the same with our bias problems?”

There are a multitude of evidence-based actions organizations that are serious about overcoming implicit bias can take In addition to using the bias interrupter tools that Williams has built, or hosting the kinds of workshops that Tall leads, many organizations are hiring diversity and inclusion officers, like Meyer-Shipp In 2019 alone, diversity and inclusion roles posted on Glassdoor rose 30 percent over the previous year

Having a diversity and inclusion officer is a great idea, but again, it can’t end there “If an organization is going to hire a diversity and inclusion leader, they should ensure they’re giving that person both a seat at the table where decisions are being made and power to make real change, including the budget and the staff they need,” MeyerShipp says “Without those things the diversity and inclusion leader is just sharing ideas that leadership may or may not put into place ”

Williams has seen this issue time and again in large organizations: “If you hire a chief diversity officer and give that person no ownership over the systems that create systemic bias, you should not be surprised that that person does not achieve your goals You have structured that position to be unable to achieve the systemic change that’s needed ”

hope for a bias-FREE WORLD

Biases in the workplace can have far-reaching effects If employees don’t feel accepted, valued, and understood, then productivity, retention, and organizational culture suffer This is supported by data: A 2018 McKinsey report on 366 public companies found that those in the top quartile for ethnic and racial diversity in management were 35 percent more likely to have financial returns above the industry mean, and those in the top quartile for gender diversity were 15 percent more likely to have returns above the industry mean Organizations that have successfully interrupted their biases also enjoy other benefits that their competitors may not Meyer-Shipp shares that at a recent global Pride conference KPMG hosted, LGBTQIA+ employees noted how far the business had come, with some finding it hard to imagine even coming out in their workplace not that long ago

Besides the benefit of a happy team, Meyer-Shipp notes that a diverse workforce can open doors to a diverse client base and exciting new ideas, but after 40 years of studying these issues, Williams is not convinced that making the business case makes an impact: “People always find a reason why they’re different, why it wouldn’t apply to their business It comes down to fixing a systemic issue ”

aN unbiased view

Williams writes in the Harvard Journal of Law and Gender, “Disrupting these automatic associations this implicit bias may well be very difficult But the issue on the ground is not whether automatic associations occur but whether, once made, the stereotyping that results can be overridden Stereotypes are reversed all the time ”

Throughout history, different biases protected our ancestors from a variety of predators and dangerous situations As society has matured, these biases no longer serve humanity But because of how deeply and precisely they’re rooted, they’re incredibly difficult to dismantle It is not hopeless, though With many conscious steps and conversations, organizations and the CPA profession can continue the long climb to becoming truly diverse and inclusive

Kristie P. Paskvan, CPA, MBA

Bias and the Board

Bias [ˈbīəs]

Prejudice in favor of or against one thing, person, or group compared with another, usually in a way considered to be unfair.

"There was evidence of bias against foreign applicants."

Board Bias [bôrd bīəs]

Prejudice in favor of or against one thing, person, or group compared with another, usually in a way considered to be unfair, which results in a deterioration of governance best practices and is a detriment to shareholder value.

Yes, it’s true I made up that second definition But after reading the existing research on the effects of various types of bias on decision-making, the threat to board governance is clear Bias can erode corporate governance standards and processes specifically put in place to ensure independence and objectivity Even when a board has separate committees for nominating, governance, audit, risk, and compensation, keeping those committees functioning properly requires taking bias concerns seriously Since boards represent the shareholders of the organization, their decisions cannot be made lightly Important ideas and initiatives are expected to be objectively assessed: information gathered, experts consulted, data reviewed, and perspectives debated before recommendations are voted on If objective measures are not taken for decision-making, and sometimes even when they are, bias comes into play When bias enters the process, decisions can more easily be influenced by conflicts of interest, peer pressure, deference to authority, reliance on unconfirmed data, and personal unconscious bias These various biases can impair even the most well-intentioned and responsible board

In the past, one root of implicit bias has been a lack of diversity in the makeup of the board

In an earlier column, I noted that many countries and a few U S states passed quotas for female corporate directors, greatly increasing gender diversity at the board level But many boards still suffer from a lack of diversity In 2019, Black Enterprise reported that 37 percent of S&P 500 companies did not have a single Black board member, down from 39 percent in 2018 Since the sum total of the board’s experience is a significant persuasive influence on critical board conversations, having diversity of thought and experience when choosing independent board members is one way to help mitigate some of the bias risk While bias may still exist, it is diluted, less of a laser with only one focus, and more of a kaleidoscope of ideas and opinions While it might seem counterintuitive that a wide array of different

When bias goes unnoticed and unchecked, it can deteriorate governance best practices, derail solid decision-making, and depreciate shareholder value.

Board Director, First Women’s Bank and SmithBucklin

Leadership Fellow, National Association of Corporate Directors kppaskvan10@gmail com | ICPAS member since 1984

and sometimes dissenting opinions leads to better decisionmaking, research shows that organizations with greater ethnic, racial, and gender diversity saw higher financial returns My guess as to why is that diversity leads to more creative problem-solving, fewer blind spots, and more innovation Based on my conversations with fellow board p broader pool of cand and diversity to orga example of how to thoughtful initiatives

Here are four of the affect decision-mak actions I suggest to

Attribution bias: You of others without any motivations to your o

ACTION: Work on the benefit of the as generous and prevent misunderst communication take If someone is late to remind yourself tha not intentional or d motivations allows y yielding better board

Anchor bias: You re gathered when mak view following inform

ACTION: Understan basing too much of that you need to ve mentioned in negoti Board members sho about all the relevan

Confirmation bias: Y supports your belief

ACTION: The board when making decisi because you disagre as successful ones a

Groupthink: You fee or disagreeing with you say nothing or you look for those th

ACTION: Energetic d not something to be and question the sta uniform agreement i

As many opportunit there are even more that is key to the board s efficacy can break down entirely if bias creeps in Understanding and confronting bias allows boards to identify where their decisions could go awry While confronting bias can be uncomfortable, just as self-awareness builds an individual’s character, honesty about interactions at the board level can build a stronger and more effective team, adding value to the organization and its shareholders

Register

Featuring: 2020 Women to Watch Award Recipients

Keynote Presentation by: Dara F. Castle, CPA Managing Par tner, RSM US LLP, Washington Metro Of fices

Elizabeth Pittelkow Kittner

An Ethical Approach to Diversity and Inclusion

Meaningful diversity and inclusion initiatives should be a foundational part of your organization’s ethics and not just because the world is demanding action.

ethicscpa@gmail com | ICPAS member since 2005

Diversity and inclusion initiatives should be a core component of an organization’s ethical framework While it is important to speak out about diversity and inclusion, your organization should also be demonstrating that it cares and is focusing on policies, initiatives, and training to improve its diversity practices Action is the best way to show that your organization and its people truly care

As society is pleading for more diversity and inclusion in organizations, the business case for diversity is strengthening McKinsey recently issued its third report in a series studying the business case for diversity: “Diversity Wins: How Inclusion Matters ” Their research shows that companies who have achieved more diversity are more likely than ever to outperform their competitors financially

Now is an excellent time to demonstrate your dedication to these values Here are three actionable steps you can take to improve diversity and inclusion within your organization now:

OPEN THE DISCUSSION

Talking about the importance of diversity and inclusion is a good first step in developing a more robust plan and creating accountability Your organization should publish a statement making clear its commitment to diversity and inclusion Prioritize diversity and inclusion at the senior management level and discuss diversity and inclusion initiatives in leadership and staff meetings This approach shows you take the topic seriously and opens the floor to discussions on how the organization is taking actionable steps, as well as other changes it should make Leadership should also use meetings to identify what harassment looks like and make it clear people can speak up without fear of retaliation

Form a task force to facilitate these discussions and identify ways to ensure diversity and inclusion are considered throughout the organization in its decision-making, operations, and personal interactions Review your code of conduct to determine if discrimination is addressed appropriately (The AICPA Code of Professional Conduct offers an example, addressing discrimination in sections 1 400 010, 2 400 010, and 3 400 010 )

Set and clearly communicate goals each year for diversity and inclusion, such as recruiting more diversity into the organization and onto the board, holding at least one diversity and inclusion event each quarter, and compiling an annual diversity and inclusion report

CPA, CGMA, CITP, DTM

Head of Finance, International Legal Technology Association

REVIEW HIRING AND TERMINATION PATTERNS

Some of the most meaningful work your organization can undertake to support diversity is ensuring your hiring and termination practices are inclusive Your organization should keep the population of résumés for each position and documentation of why candidates were not hired This review will help you determine if your hiring practices are weeding out diverse candidates On the other hand, keep documentation of why terminations occurred and conduct exit interviews to identify if there are biases or practices that are contributing to diverse workers leaving the company

Something as simple as a job description can be detrimental to diversity, so write job descriptions with inclusive language

A 2016 study by Textio discovered that phrasing in a job description affected if more women versus men applied; words like, “exhaustive,” “enforcement,” or “fearless” led to more male applicants, while “transparent,” “catalyst,” or “in touch with” led to more female applicants

A significant component of personal ethics is to work harder on treating people equally and giving more opportunities to groups that may be denied access to opportunities One way to achieve this goal is to recruit at different schools Perhaps your organization tends to only recruit from large schools; in this instance, expand your recruiting to smaller schools with similar majors

Once your organization begins to interview and hire a more diverse pool of candidates, it is important to focus on retention Mentorship programs, succession planning, skills building, and assessment of satisfaction with work and corporate culture are all good retention practices

Also, ensure your organization has an anonymous way to provide feedback to management and those with governance If people are comfortable reporting when something does not look right, the organization has a chance to address it before it perpetuates

PROVIDE TRAINING

Many organizations need to work to create a diverse and inclusive culture because of unexamined biases they may not know they hold Harvard’s Project Implicit offers ways to learn about your unconscious bias: Self-awareness helps to correct behavior and encourages individuals to question the thought process behind their decisions Incorporate broader diversity and inclusion training regularly; you can include more diversity and inclusion topics in your recurring ethics and sexual harassment trainings Encourage growth as an organization and as individuals

Effective diversity and inclusion initiatives start with becoming aware of your biases, then taking action to improve your behaviors, the behaviors of your organization, and the behaviors of the profession

Ensure your personal ethics and values align with those of your organization, and if they do not, determine if you can change your organization from the inside or if you should leave for an organization that aligns with your values Improving diversity and inclusion takes effort and courage, and you can make a meaningful difference

You can learn more about the Illinois CPA Society’s commitment to promoting diversity and inclusion, including resources for organizations and individuals, here: www icpas org/diversity

Jon Lokhorst, CPA, ACC Executive Leadership Coach, Lokhorst Consulting jon@lokhorstconsulting com

Leading Yourself Through Crisis

Strengthening your self-leadership skills will make you a better team leader and empower you to face the stress and distractions of a historic crisis.

I will never forget March 9, 2020 The morning started off like any other day on the road for me I left a client meeting for the San Diego airport to return to my home in Minneapolis and stopped by an airport restaurant to grab lunch As I took my first bite, I noticed news of a sharp drop in the stock market scrolling by on a television screen I sensed heightened anxiety from the people around me in the terminal That pervasive feeling lingered as I boarded the plane and took my seat As the plane took off and circled over the beautiful San Diego harbor, I realized that the novel coronavirus I’d read about was escalating into a much bigger issue than anyone had imagined “We’re in deep doo-doo,” I thought

Several months later, COVID-19 is still top of mind, occupying our thoughts, changing our habits, and driving our plans, including plans for the long road to recovery that lies ahead This season of disruption will be rife with new challenges for you as a leader Remember, as one of my consulting colleagues says, “All leadership starts with self-leadership ” You must lead yourself well before you can lead others well Mastering self-leadership will empower you to face the stress, fatigue, and distractions of this historic crisis with energy and insight instead of exhaustion and myopia

Here are four strategies to strengthen your self-leadership during this challenging season

REFRESH YOUR VISION

Leadership starts with vision This is true for self-leadership, too Unfortunately, being in crisis mode often results in getting stuck in the present, making it hard to move forward You can spin your wheels and stagnate in a rut According to futurist Daniel Burris, “Dwelling on current reality reinforces sameness Dwelling on future goals reinforces action ”

To get unstuck, refresh your vision Vision is the answer to the question, “Where are you going?” Your vision offers a compelling mental picture of the future you desire Having a clear vision is just as important for you as an individual as having a strategic plan is for your organization It is essential to building a strong personal foundation As the late baseball star Yogi Berra was famous for saying, “If you don’t know where you ’ re going, you’ll end up someplace else ”

Think about where you want to be two, five, or 10 years down the road Write a description of that desired future state or find an image that represents it Keep it in front of you as a reminder while you navigate the current crisis no matter what you ’ re dealing with at the moment, that’s your end goal

Every effective self-leader must develop the ability to toggle between the long view and today’s reality You cannot daydream and ignore today’s problems, but lifting your head to look to the future will keep you from becoming mired in the present Build forward movement by asking yourself the question I suggest to many of my coaching clients: “What does my vision require of me today?”

WATCH YOUR SELF-TALK

Do you ever talk to yourself ? If so, you ’ re not alone Nearly everyone I’ve met admits to talking to themselves on occasion It may be in the shower, during a morning jog, or while driving alone The more important question is whether your self-talk is healthy or unhealthy Does your self-talk move you forward or hold you back?

Two characters from well-known children’s stories offer poignant lessons about self-talk

First, there’s Eeyore, the loveable but miserable donkey in Winnie the Pooh stories One of Eeyore’s classic lines is, “Could be worse Not sure how, but it could be ” You can probably hear the sound of Eeyore’s gloomy voice in your head Eeyore’s self-talk reflects a pessimistic outlook, always focused on problems and obstacles

In contrast, there is the Little Blue Engine After much larger engines decline to pull a long train over a mountain, the much smaller engine accepts the challenge “I think I can, I think I can, I think I can, ” it says And ultimately, empowered by positive self-talk, it pulls the train over the mountain The Little Blue Engine’s self-talk reflects an optimistic perspective, not ignoring the uphill climb, but focusing on possibilities and opportunities

Which character does your self-talk resemble, Eeyore or the Little Blue Engine? Self-talk includes an element of self-fulfilling prophecy

As self-leadership experts Andrew Bryant and Ana Kazan say, “Selfleaders can choose to self-talk and self-coach themselves to winning attitudes ”

Positive, healthy self-talk is more critical in dark times than sunny What can you do to remind yourself to be a Little Blue Engine rather than an Eeyore?

GIVE YOURSELF GRACE

You are probably better at extending grace to your team members than to yourself Yet, as a leader, you constantly face conditions that are far from ideal Plan A turns to Plan B, then Plan C, and eventually you end up further down the alphabet than you would have ever thought

Give yourself credit for making the best of circumstances that are far from ideal If you are working from home, you may still be getting used to the challenges of sharing office space with a partner, watching over kids, or hearing the dog bark at the UPS truck in the background of your Zoom calls If you ’ re in the office, safety protocols and workplace reconfigurations may have changed the environment you ’ re used to

“Be gentle to yourself,” is the way one seminar attendee put it in the chat Much has been lost during the pandemic, eliciting feelings of grief for many people The school year was cut short, graduation celebrations and weddings canceled, athletic seasons put on hold, and the activities that usually enrich our lives are limited Some of us have seen people we know become ill or die from the virus In late March, “That Discomfort You’re Feeling is Grief,” became the most downloaded article in history from the Harvard Business Review website Grieving includes several stages, which require grace to process Give yourself that grace as you move forward

PRACTICE SELF-CARE

You can’t draw water from an empty well Self-care allows you to replenish your energy store so it doesn’t run dry It might seem selfish at first but if you don’t find ways to care for yourself, you will run out of energy to help your colleagues, clients, family members, friends, and neighbors

Self-care includes practices, habits, and activities that give you energy and enhance your well-being When I ask for self-care ideas during presentations and workshops, exercise and healthy eating typically top the list of suggestions Reading books, watching classic movies, gardening, cooking, and faith practices also make the list So do brewing beer, walking the dog, spending time outdoors, and doing art projects

Establish a daily routine that incorporates self-care activities Block out time on your calendar if you find that meetings and other commitments fill your schedule Coordinate with family members and find self-care activities to enjoy together Likewise, if you find your routine is no longer helpful, revamp it Change your schedule or try something new Whenever possible, eliminate activities that drain your energy, like excessive browsing of the news or social media

By refocusing your vision, changing your inner voice, treating yourself generously, and treating your body and mind with care, you can better your self-leadership skills In turn, this will make you a more engaged, empathetic, and effective leader of others Make each of these practices a priority as you lead your team down the long road to recovery

Our

Check

www.icpas.org/careers

Tim Jipping, CPA, CGMA

What Makes Great Firms Great?

The profound and simple recipe for an outstanding firm from the perspective of a 7-year-old

From time to time, I try to step back and revisit the building blocks of what makes a great firm Not the urgent tasks on my to-do list, the latest technology, or my dream clients, but the basics of how to succeed To get to the heart of this question, I went to a highly respected advisor: my 7-year-old daughter

My daughter knows almost nothing about what we CPAs do When asked, she said, “You help people who need help ” She pretty much nailed it Let us never forget that at our core we are people helping people

To start our discussion, I gave my daughter a promotion: she’s the head of my firm for the next 45 minutes Her first task is to determine how she would run a company that works directly with people a service firm I asked her questions like: How would you make your customers happy? How would you ensure your customers had an awesome experience? How would you find more customers?

I had plenty of follow-up questions as we explored how she would run a great firm, and I made sure I did not lead the witness or correct her reasoning I just listened, took notes, and then pondered what she said It struck me how deep the simplicity of children can be, and what we can learn from the basic principles and core elements of high-quality service The following summarizes her key themes:

“HELP PEOPLE REALLY GOOD LIKE, BETTER THAN OTHERS”

It should go without saying that quality of service should be our top priority even a 7-yearold understands that But as humans we tend to relax and slip up from time to time To maintain a consistent high quality of service, we should not only build in quality assurance protocols, but also revisit them regularly to ensure that high standards continue to be met

To elevate performance further, we must also have our antennas up, scanning the landscape to see what peer firms are doing This doesn’t mean you should do whatever the firm next door does, but it helps you assess where you stand, and it can help generate new ideas to progress and improve

This is the foundation of any great firm: reliably performing work of the highest quality for our clients, giving them strategic insight, and helping them get ahead

“MAKE SURE YOU HAVE THE RIGHT PEOPLE WORKING WITH YOU AND GET MORE OF THEM”

This is truer now than ever considering the many recent disruptions in our industry and world Reevaluate your team, adjust if necessary, and then invest, invest, invest While difficult for some penny-pinching CPAs to do, there is no investment that will provide a greater return

And right now is a fantastic time to find great people to join your team The economic landscape is tumultuous and uncertain, but one positive for you is that many innovative,

talented, and hard-working people are looking for something new Adding some amazing people with new skill sets to the team will help your firm thrive through the hard times and exponentially grow when the economy rebounds A quote often attributed to Warren Buffet comes to mind: “Be fearful when others are greedy; be greedy when others are fearful ”

While high-quality service may be the foundation of a great firm, it’s simply not possible without high-quality workers who are happy to deliver it Really invest in the right people

“DO MORE THAN PEOPLE ASK OR EXPECT”

The old cliché “above and beyond” came to mind as my 7-year-old was describing how she would deliver micro-surprises to keep her customers uniquely happy This does not mean that every task or project needs a cherry on top, but building in regular surprises that delight your clients and staff will position you for success and elevate your reputation beyond your wildest dreams

For the great firms, this doesn’t necessarily mean a gift basket, but it does mean adding strategic value As CPAs, we have both the nitty-gritty details and the bird’s eye perspective on our clients’ businesses Going above and beyond means helping them succeed there’s nothing they’ll appreciate more

“SING HAPPY BIRTHDAY AND PUT UP DECORATIONS”

At first it sounded childish, but the more I thought about it I realized she was hitting on one of the most important ingredients of any great firm: care Whether it be clients or colleagues, everyone feels cared for when you go the extra mile Maybe it isn’t singing a song or putting up streamers, but maybe it is! Add the creative, personal touch when others won’t take the time

After all, each colleague and client is a human being, and humans thrive on connection Remembering birthdays and anniversaries and showing appreciation for their work or their business builds that connection Great firms treat their people with care and gratitude, and thus have solid relationships that last for years

At the end of the conversation with my new 7-year-old CEO, she dropped the mic: “If you did these things, who wouldn’t want to work with you?”

Art Kuesel President, Kuesel Consulting art@kueselconsulting com

It’s Time to Rev Your Business Development Engine

Your business development practices may be metaphorically rusting on the side of the road, but now is the perfect time to bring the engine roaring back to life

What happens if you park your car and don’t start it for several months? You might cross your fingers when you eventually try to start it, right? It could have a dead battery, a flat tire, a mouse living under the hood any number of the maladies that come with a neglected car In the worst-case scenario, it could have parking tickets, a boot, or simply be gone!

The same thing can happen in business development: when it’s neglected, it can become ineffective, broken, or could disappear altogether

Listen, I get it I have lived the same nightmare as you since March I understand why business development has fallen to the bottom of your to-do list, but it cannot be neglected forever or you risk much more than a dead battery or flat tire Anyone who has been active at business development in the past has gone through a drought: several weeks without networking, months without a referral, several proposals lost in a row But when you combine ongoing economic uncertainty with a lack of business development effort, you risk a new kind of drought

Forget about new business for a second What about your current clients? What if your largest client asks for a new bid in an effort to mitigate their costs? I’ve seen it happen with some of my clients, and it will most certainly continue as the pandemic slows cash flow to a trickle If you ignore business development too long, these problems combined could become the equivalent of a car thief when you finally show up to go for a spin, you’ll find your ride has evaporated into thin air

So, how do you restart your business development engine? Here are some tried-and-true recommendations that will get you up to speed:

MAKE SURE YOUR CLIENTS FEEL THE LOVE.

This is where your client goodwill efforts, like inviting them to a pertinent webinar or sharing a helpful article, come into play Schedule calls “just to check in” and see how their business is doing given all the disruption in our world right now Don’t fear bad news You aren’t expected to solve every problem, but you are expected to be empathetic and listen Make sure your clients know about some of the newer services your firm has launched in the past few years maybe your cross-selling efforts here can land a project or two Finally,

remember that approximately 50 percent of all your business development time should be spent with your existing clients

DON’T NEGLECT RELATIONSHIPS

Pull up a list of anyone who has sent you a referral in the past few years and reach out to check in It’s been difficult to get the scuttlebutt on the street without our usual coffees, lunches, and networking events, but I suspect you haven’t been trying hard enough Also, now is a great time to help your referral sources make new connections Make introductions within your network to fuel some activity Remember that approximately 25 percent of your business development time should be spent here, as non-client referral sources influence a considerable amount of your new business

COMMIT TO WRITING AND SPEAKING (VIA WEBINAR) TO YOUR TARGET AUDIENCES.

No networking? No sponsorship events? No seminars? No award ceremonies? Just because we aren’t meeting in large groups doesn’t mean there isn’t a desire for valuable information In fact, the thirst for knowledge is high! It could be a great time to build a strong personal brand around a topic that serves as a magnet for new business going forward While rarely instant, new business opportunities can trickle in for years from something you wrote or a webinar you presented

RETHINK PROSPECT DEVELOPMENT.

First, touch base with any prospective client you didn’t win in the past few years Check in to see how they are doing and if they need any help If they chose the low-cost provider, it’s possible they have been neglected in the past several months

Second, consider your ideal client Create a list of individuals and organizations that you would like to do business with and reach out to them, or utilize your client and referral source network to open doors for you

Just like a car, allowing your business development to lie dormant for too long can cause serious problems Now that you recognize these potential risks, as well as what you can do about them, it’s time for a jump-start Commit to spending up to eight hours a week on a few of these activities and before long your business development engine will roar back to life

ser

Education

S trategic programs focused on real-world solutions

• Controller s Conference

March 18, 202 1

• ICPAS SUMMIT2 1: Corporate Finance Track

August 24-25, 202 1

• Financial Repor ting Symposium

September 202 1

Cor porate Access Program

The go-to resource for your entire corporate finance team, all for one low price.

Networ king Breakfasts

Quar terly programs to expand your knowledge base, share best practices and network

Cor porate Finance Insight

Bi-monthly e-publication delivered to your email box featuring insightful corporate finance news and trends

Cor porate Finance Online Community

Connect with fellow corporate finance professionals to ask questions, discuss issues and receive input

Career Center

Tools to help you climb the corporate ladder including job postings, aler ts, resume posting and career coaching

Mark J Gilbert, CPA/PFS, MBA President, Reason Financial Advisors mgilbert@reasonfinancial com | ICPAS member since 1982

Investing During COVID-19: Stick to Your Principles

It’s easy to panic in the midst of a pandemic, but investors must avoid portfolio mistakes that’ll plague them when the economy recovers

The COVID-19 pandemic has affected so much of our daily lives including, of course, our professional lives For me as a CPA and financial advisor, this means more than working from home It means watching interest rates drop and stock values gyrate as the U S and global economies continue to struggle In times like these, it’s good to ask, “When the world changes, should our investing principles change as well?”

THE OLD STANDARD

I think CPAs regardless of whether we offer financial planning services to clients have a pretty good understanding of the basics of investing:

• Develop an emergency fund and save or invest it in a safe, liquid vehicle

• Invest according to the timing of goals: cash and bonds for short-term goals, equities for long-term goals

• Remember that the expected return of an investment increases with the expected risk of that investment: equities are expected to return more than bonds, and both are expected to return more than cash

• Reduce equities and increase bonds and cash as you age

• Hold an appropriate amount of equities, bonds, and cash consistent with your risk tolerance

• Diversify to reduce investment risk

• Don’t rely too heavily on Social Security to provide retirement income

These basic principles have kept investors grounded and focused on their financial and lifestyle goals for decades, preventing them from getting caught up in the euphoria of bull markets or the despair of bear markets And, even in this financially challenging time, I think you and your clients will find the old standard still works

THE NEW NORMAL

Investing now is like investing during any economic recession, during a national crisis, or in a time of serious political turmoil In other words, the lion’s share of a portfolio should remain the same, and you should make small changes in response to the current environment

Along those lines, remember that your time frame for using your assets should strongly influence the changes you make If you are retiring, paying for college, or making a down payment on a house soon, then your time frame is relatively short and the pandemic’s negative impact might have a major effect on your portfolio On the other hand, if you don’t expect to make withdrawals for years, the immediate effect of the pandemic on your portfolio while certainly not pretty is not as meaningful (and could be an opportunity) So,

what kinds of small changes will help your portfolio weather the current market?

EQUITY INVESTING

Historically low interest rates are pushing more investors into equities, resulting in higher price-to-earnings multiples when valuing stocks While higher share prices are justified (to a degree), it’s important to remember the earnings component of any stock must also be rising in order to support higher share valuations The best stocks to hold for the foreseeable future might be those of companies that provide products and services most needed during the pandemic think PPE manufacturers, pharmaceutical companies developing a COVID-19 vaccine, home delivery services, streaming services, and videoconferencing providers Conversely, many companies that provide in-person experiences like travel services, cruise lines, theater operators, and restaurants are posting little to no earnings, and even losses, as the pandemic stretches on

The pandemic is taking its toll on sector investing as well Generally speaking, technology and consumer staples are faring better than the stock market as a whole Because of low interest rates, the financial sector will likely underperform the overall market Energy and commercial real estate are also likely to underperform due to reduced demand for oil and gas and rising office and retail vacancy rates

Rebalancing your portfolio to capitalize on these outlooks seems logical, but remember that market prices are based on future expectations to a great degree If a stock’s price has already been beaten down, it may be primed for a recovery on merely an incremental improvement in the company ’ s earnings outlook In fact, it could be a smart move to invest in out-of-favor stocks and wait for prices to climb as earnings forecasts begin to rise In any event, it’s prudent to diversify by investing in all sectors of the U S economy, and simply increasing or decreasing your holdings in affected industries

FIXED INCOME INVESTING

Low interest rates are a challenge for bond investors Income investors must accept lower coupon payments on new bond issues and pay more to acquire bonds with relatively high interest payouts Total return investors, who hold bonds to reduce risk in their portfolios, will enjoy the rising prices of bonds in this environment, but they face reinvestment risk when the bonds mature and need to be replaced with new, lower-yielding issues Though this is unfortunate, I don’t recommend taking any action to counter these effects The best ways to improve yields in the face of lower interest rates substituting bonds for higher yielding dividend stocks or investing in longer maturing or lower credit quality bonds all require taking on more risk In effect, investors need to bear the consequences of lower rates in the bond portion of their portfolios

However, there is another aspect to fixed income investing during the pandemic that investors should pay attention to Many observers suspect the $8 trillion stimulus (as of this writing) that the federal government and Federal Reserve have added to the economy is likely to be inflationary once the economy begins to rebound and the pandemic recession recedes If this is true, then investing in inflation-indexed Treasury bonds could be attractive as their principal value is adjusted upward consistent with the inflation rate

The bottom line is COVID-19 has spurred spikes up and down in U S and global stock markets throughout 2020 If you don’t want to get whiplash, I suggest sticking to the tried-and-true investment principles above while making small changes to realign your portfolio with our current reality

Keith Staats, JD Executive Director, Illinois Chamber of Commerce Tax Institute

The Dark Side of Illinois Property Tax Law

The Illinois property tax system often has the unintended consequence of creating cities and neighborhoods that suffer from endemic poverty.

In Illinois, there are cities and neighborhoods that suffer from endemic financial problems and have a population mired in poverty think East St Louis or Cairo, as well as some of Chicago’s neighborhoods and south suburbs A common “solution” to address these financial problems is to encourage businesses to open in these areas, with various state and federal tax credit and incentive programs adopted and announced with great fanfare The problem is that however well-intentioned the programs are, high property taxes caused by the nature of the property tax system can negate the benefits offered by these credits and incentives Without property tax relief, these programs are often rendered ineffective To understand why this occurs, it is necessary to decode the basics of Illinois real property taxation

In Illinois, real property taxes are governed by state law the Property Tax Code but are levied and collected at the local level The state of Illinois does not levy or collect taxes on real property, and not all real property is taxable The Illinois Constitution authorizes the General Assembly to exempt from property tax the property of governments, school districts, and property used exclusively for agricultural and horticultural societies, and for school, religious, cemetery, and charitable purposes In addition, the Constitution forbids the taxation of personal property by state or local government

According to the Illinois Department of Revenue, there are approximately 6,000 local government units in Illinois that are financed in whole or in part through local property taxes

The property tax bill for my house in a suburb of Springfield is not unusual It lists 12 different taxing bodies that impose property taxes on my house: the city, the county, the school district, the community college district, the township, the township road and bridge district, the airport authority, the fire protection district, the convention center district, the mass transit district, the park district, and the water reclamation district

Each local government unit determines its levy the total amount of property taxes it needs to collect to fund operations The levy is then divided among the property owners in the taxing district based on the taxable value of their property The total value of all property in the taxing district is divided by the total amount of the levy to derive the tax rate The tax rate is multiplied by the value of each individual taxable parcel to derive the amount of tax imposed on that parcel The amount of tax from each taxing district is then totaled and results in the property tax bill for the individual parcel

Taxing districts don’t have unlimited authority to tax, as state law limits the amounts that can be levied by individual taxing districts For example, my local mass transit district can’t

decide they want to replace buses with stretch limos and raise everyone ’ s taxes accordingly Also, in many areas of the state, state law provides a limit on how much the overall tax bill to a property owner can increase in any particular year The Property Tax Extension Limitation Law places limits on the year-to-year increase in the “extension” the total taxes billed to the property owner and allows taxing districts to receive a limited inflation-related annual increase on existing properties

How does the property tax system contribute to businesses leaving impoverished areas? Let’s see how it works by using a simplistic example

In 2010, City A has real property with a total assessed value of $1 billion and has a school district that levies $1 5 million for its operations When you do the math (levy divided by total assessed value), this results in a tax rate of 0 0015 of assessed value of any individual parcel I have a factory located in City A valued at $2 million, thus my factory’s property tax bill for the school district will be $3,000 per year

In 2011, assume that the factory down the road from my factory was valued at $5 million, but at the end of 2010 the factory closed and moved to Missouri The closed factory is razed and the land is donated to City A for a park Assuming that everything else remains the same, the total assessed value of all properties in City A is now $995 million because of the reduction in the tax base (When City A takes ownership of the property, the property comes off the tax rolls Recall that properties owned by governmental bodies and used for government purposes are property tax-exempt ) The school district continues to need $1 5 million for operations, but now that levy is divided over a smaller base so the property tax bill for my factory goes up to $3,015 (To keep the example simple, we are only discussing the school district portion of the property tax bill, but the portion of the total property taxes payable to the other taxing districts by my factory would also increase )

In 2012, because the factory closed and moved away, a bar and a restaurant located next to the closed factory both close for lack for business The owners of the bar and restaurant sell their buildings, but because of the closure of the factory, the buildings are no longer as desirable and sell for less than they would have before the factory closed In addition, many of the workers who worked in the closed factory sell their homes in City A and move out of town Because many homes are being sold in the same time frame in a city with fewer job opportunities, the homes sell for less than they would have before the factory closure As a result, the value of all residential real estate in City A drops

All of this contributes to a further decline in the total assessed value of real estate in City A, which means that the tax rate on the remaining property owners increases again in order for the school district to continue to collect its $1 5 million levy That means the property taxes on my factory increase again

Let’s assume that NUCO is looking to build a new factory They have their site consultants evaluate various locations, including City A They note that City A has rising property tax rates and when they compare property taxes in City A to other locations, they conclude that they could save money by locating in City B As more companies make the same decision, jobs become scarcer With fewer jobs in City A, more people move away As the downward spiral continues, the property taxes continue to increase on my factory and City A continues to become more impoverished Eventually I reach a point where I decide to move my factory out of City A

This is a very simplistic example, but it illustrates what has happened and continues to happen in many areas in Illinois The property tax system can contribute to an area ’ s downward spiral into poverty and make it more difficult to reverse that downward spiral

State income tax and sales tax credits and incentives can entice companies to locate in impoverished areas, but they must be high enough to offset the higher property taxes associated with these areas, or they must be coupled with local property tax incentives (reductions) As an alternative to, or in conjunction with, local property tax relief, the state can offer additional incentives for businesses to locate in impoverished areas The most recent version of the Illinois EDGE credit against the income tax includes an idea I suggested: providing a greater credit against the income tax for companies that locate in an underserved, impoverished area This concept is also embodied in the 2019 Data Center Investment legislation, which provides an income tax credit for data centers that locate in these underserved areas I was a principle drafter of that legislation

However, like most things tax-related, there is no quick and easy fix Without incentives to locate in impoverished areas with high property taxes, the overwhelming majority of businesses will choose to set up shop in areas that allow them the greatest amount of profit While there are arguments against these incentives on both sides of the political spectrum, I believe that state-level tax credits and incentive programs are vital to encouraging businesses to move into and serve the cities and neighborhoods that badly need them

Nancy Miller, CPA

Senior Director of Accounting, Reynolds Group Holdings

COVID-19’s Impact on Lease Accounting

One of the many consequences of the current economic environment has been an impact on rental markets The sudden slowdown has compelled many lessors to make concessions to lessees whose ability to pay has been impacted In many cases, lessors have made amendments to existing leases that created rent holidays or lowered rents, often in exchange for lease extensions, reduced space requirements, and even lease terminations which complicates the financial reporting of these deals The FASB staff issued a Q&A to address some of the most pressing issues, but the broader perspective requires an understanding of how the accounting for lease modifications under ASC 842 differs from the accounting under the previous provisions of ASC 840 and how a lease modification impacts transition accounting

As a quick refresher, a lease modification is defined in ASC 842 as a change in the scope of or consideration for a lease that was not part of the original terms and conditions of the lease A lease modification includes adding or terminating the right to use one or more underlying assets or changing the contractual lease term A modification is accounted as a separate lease only if it creates a new right-of-use asset that is priced commensurate with the cost of a stand-alone lease Otherwise, the modification is a remeasurement of the original right-of-use asset and lease obligation Here are four of the major differences and how to navigate them:

TRANSITION IMPACT

ASC 842 included many provisions that were designed to facilitate the transition to recognition of right-of-use assets by lessees For example, lessees were permitted to transition existing leases without revisiting the original determination whether the arrangement is or contains a lease, the original lease classification, or the accounting for initial direct costs The discount rate for all leases could be effective as of the implementation date

However, none of that applies if the lease is modified or remeasured for any reason (see ASC 842-10-3-4) If a modification to the contractual terms and conditions occurs on or after the effective date and the modification does not result in a separate contract or the lessee is required to remeasure the lease liability for any reason, the lessee must follow the requirements in ASC 842 from the effective date of the modification or the remeasurement date

In a turbulent market, lease modifications and concessions have become common but still require careful analysis.

EXTENSIONS OR TERMINATIONS

Under ASC 840, most extensions were accounted for as a new lease Under ASC 842, an extension of the lease is not a new lease but instead a remeasurement event for the existing right-of-use asset and lease obligation If the lease is extended, the lease liability is remeasured with an adjustment to the right-of-use asset to reflect the cost of additional rights The new lease payments are discounted at the lessee’s discretion using a revised appropriate rate on the date of the modification Any initial direct costs, lease incentives, or other payments in connection with a modification are accounted for as if the modification is a new lease

Shortening a lease is also a remeasurement event In order to qualify as a partial termination, there should be a difference between the rights before and after the modification For example, a lease that reduces the amount of space leased or the number of vehicles leased would be a partial termination On the other hand, a modification that adds new leased assets would be accounted for as a new lease but only if the lease payments increase commensurate with the standalone price for the additional rights of use

CONCESSIONS

In normal times, a concession, such as a rent holiday or deferral, would be accounted for as a modification and recognized over the remaining lease term As these are not normal times, the FASB staff permits a concession due to COVID-19 to be accounted for as contingent rent and recognized immediately Also, if the concession is not considered a modification, the transition provisions may still apply, an extra incentive to account for the concession as contingent rent However, accounting for the concession as a modification remains an option

IMPAIRMENT

The ongoing crisis is leading to extensive impairment testing of rightof-use assets, a new procedure under ASC 842 Under prior lease guidance, only capital leases were recognized on statement of financial position and therefore subject to the impairment guidance in ASC 360 Now that virtually all leases are recognized, the new right-of-use assets will need to be included in annual impairment testing, whether individually or, more likely, as part of a larger group of assets For many companies, this will require additional staff time, new skills, and the exercise of professional judgment to determine asset groups, assess recoverability and, if necessary, determine the fair value of asset groups and allocate amounts to right-of-use assets

In addition, an unremarked provision of the new standard that was added subsequent to the exposure draft requires a major change in the accounting for operating leases once an impairment is recognized In effect, expense recognition is no longer straight-line Lease expense will be front-loaded for the remaining lease term, comparable to a finance lease The FASB did not include any provision to revert to straight-line recognition if the lease is extended, so presumably this accounting will continue through extension periods

The bottom line: Lease modifications or concessions driven by the current crisis could have major impacts in current and future financial reports and require careful analysis in order to get them right

This column was co-authored by John Hepp, Ph D , clinical assistant professor of accountancy in the University of Illinois’ Geis School of Business

Finding a Higher Purpose in Volunteering

Building a successful career feels great, but sometimes reaching out and helping someone else feels even better.

BY ROXANNE CHOW, CPA

When I was a kid, I assumed my purpose-driven life would include all the “normal” milestones: graduating high school, going to college, getting a good job, getting married, and having a family But as I’ve aged like a fine wine, I’ve come to realize that I wanted a higher purpose than just hitting those milestones and I feel like I’ve discovered that greater purpose in my volunteer work

I started volunteering with Ladder Up when friends of mine who were on Ladder Up’s Associates Board invited me to check it out They told me that Ladder Up is a Chicago non-profit organization that provides financial education and resources to low-income individuals and families My friends encouraged me to volunteer for the Tax Assistance Program (TAP), which provides free tax preparation services from late January through April 15 every year

At first, I was nervous I’d done my own taxes before, but what was I doing pretending to be a tax expert for other people? Sure, I have a CPA, but I went into audit and then accounting advisory, certainly not individual taxes by any stretch of the imagination

But I went My first client was a single 19-year-old woman with one W-2 I thought, perfect I can do this Then my second clients were a married couple with three kids, who were half watching cartoons on mom ’ s phone and half annoyed to sit still in a strange place for an hour and a half They were immigrants from Mexico and spoke little English but were very warm and friendly The dad worked full time and the mom was a homemaker; they made $35,000 in total for the year I went through their paperwork and got to work, entering their information into the software and asking them a series of questions their 12-year-old helped translate As I wrapped up and looked at their 1040, I saw that they were going to get a refund of $8,500 When the quality review volunteer and I told them that number, the mom started crying and the parents both jumped up to hug us

This was when I knew that I wanted to make volunteering a regular part of my life It was an indescribable feeling to feel immense gratitude from these strangers and see the impact that you can have on another person ’ s life from spending just 45 minutes with them I have spent the past seven tax seasons volunteering as a tax preparer for Ladder Up, and it has been and continues to be one of the most fulfilling experiences in my life

So many people in this country don’t have the same access to financial education and resources as I did, and it creates a massive economic gap starting from birth that grows exponentially into adulthood This is why I volunteer with organizations like Ladder Up that help provide the resources needed to shrink that gap and give people the means to build better lives I can’t solve all these issues on my own, but I can lead a purpose-driven life, one volunteer session at a time

Roxanne Chow is a senior manager in accounting advisory at EY and the 2018 winner of the Women to Watch Emerging Leader Award from the Illinois CPA Society's Women's Committee and the American Institute of CPAs Women's Initiatives Executive Committee

At age 11, superhero-loving Dorri McWhorter decided she wanted to become an accountant, and despite all she has accomplished throughout her career, she’ll tell you that her passion and energy haven’t changed much since then Maybe that’s a good thing Not every Illinois CPA Society chairperson kicks off their term amid a pandemic that limits their ability to engage with members And not every chairperson steps in during social and political movements that are impacting the business world on so many levels But the unintentional timing of the Society appointing its first Black chairperson is perfect in hindsight, especially when you consider she’s still a true believer in superheroes and the justice and good they stand for

You call CPAs the superheroes of business In a year disrupted by COVID-19, economic uncertainty, and important social and political movements, superheroes are surely needed. What opportunities are you seeing for CPAs to step into this superhero role and influence positive change in the business world?

Right now, there is so much disruption and uncertainty Because CPAs are trusted, they have an opportunity to build upon that trust and provide their strategic insights about how businesses can recover Bottom line, CPAs are well-positioned to support that recovery and growth

Achieving racial and gender equity is the YWCA’s mission, but it’s also a personal passion of yours. How can business leaders ensure any initiatives their organizations put forth on these issues are meaningful and have staying power?

Business leaders have the opportunity to lean into this moment and recognize there’s a combination of crises that have converged Intention matters When tackling these tough issues, leaders must begin with the end in mind It’s not about just reacting to the moment; having a solution orientation provides the basis to create a truly sustainable response

Can you tell us a bit more about the YWCA’s new Until Justice Just Is campaign?

CITP, CGMA

Dorri C. McWhorter, CPA,

Chair, ICPAS Board of Directors

CEO, YWCA Metropolitan Chicago

INTERVIEWED BY DERRICK LILLY

“Until Justice Just Is” is the rallying cry for the YWCA’s Racial Justice League Given the civil unrest, we felt it was important to remind people of the work that the YWCA has done for over 140 years, give people an opportunity to directly support that work, and make their own commitments to advance racial justice Just one tool we ’ re providing is a resource library, including an anti-racism discussion guide, to support people and organizations in their journey to understand the impact of racism and how they can be part of the solution

The accounting profession has historically lacked both gender and racial diversity at the leadership levels. You’ve successfully overcome both at various organizations throughout your career. What lessons have you learned that can benefit other women and minorities aspiring to your level of success?

You have to remain true to who you are! Of course, you need to understand the culture of organizations and determine how much effort you want to put forward in evolving the culture if it doesn’t feel inclusive Sometimes, you can support cultural change, and sometimes you need to know when it may simply be time to move on I truly believe people do the best they can with what they know (or have experienced) Along my career, I have had to determine when I can support learning or when the environment was not working for me I have also continued to learn myself to make sure that I am always evolving and being the best version of myself

Any parting words for readers?

I have such a high level of respect for the CPA profession and am grateful for the Society’s members as we continue to navigate this environment I invite everyone to continue developing our trusted and strategic positioning in business as we work together to reimagine and innovate a better world!

Give a little, g et involved!

The Illinois CPA Society has Opportunities for you to Volunteer!

Volunteering is a great way to connect with others, learn new skills, advance your career, make an impact and give back.

We need your expertise and leadership to help us reach our goals and enhance the accounting profession. Visit www.icpas.org/volunteer to browse current volunteer opportunities and apply to those that match your interest and skillset, from short term projects to committee, advisory council and chapter service.

The annual call for volunteers is January 1 - 31, 2021. Outside of this time, applications are accepted on a rolling basis.

Committees

Advisory Councils Task Forces

Chapters

S t ay Smar t

Get today’s must-have skills!

Conferences

Oct 28 Construction Industr y Conference (Vir tual Only)

Nov 5 Cannabis Industr y Conference (Vir tual Only)

Nov 12 IRS/Tax Practitioner ’s Symposium (Vir tual Only)

Nov 19 Not-for-Profit Conference (Vir tual Only)

Dec. 3 Accounting & Auditing Conference (Vir tual Only)

Dec. 8 Employee Benefits Conference (Vir tual Only)

Dec. 9 Advanced Topics in Flow -Through Taxation Conference (Vir tual Only)

Jan 20 S tate & Local Tax Conference (In-person and Vir tual)

Cour ses

Oct. 20-2 1 S taf f Training - Semi-Senior (Vir tual Only)

Oct 20 International Tax (Vir tual Only)

Oct. 2 1 Per sonal Financial Planning Series: Estate & Charitable Planning - Half-Day (Vir tual Only)

Oct. 22 Interpreting the New Revenue Recognition S tandard: What All CPAs Need to Know Half-Day (Vir tual Only)

Oct 22 The Bottom Line on the New Lease Accounting Requirements - Half Day (Vir tual Only)

Oct 23 Annual Update and Practice Issues for Preparation, Compilation, and Review Engagements (Vir tual Only)

Oct. 26 The Most Critical Challenges in Not-for-Profit Accounting Today - Half Day (Vir tual Only)

Oct. 26 The Most Critical Challenges in Governmental Accounting Today - Half Day (Vir tual Only)

Oct 27 Per sonal Financial Planning Series (Retirement & Elder Planning) - Half Day (Vir tual Only)

Oct 27 Next-Gen Transitioning: Building a Sustainable & Transferable Firm - Half Day (Vir tual Only)

Oct 28 Form 990: Mastering Its Unique Characteristics (Vir tual Only)

Oct 29-30 S taf f Training - Beginning In-Charge (Vir tual Only)

Oct. 29 1040 Tax Return Workshop (Vir tual Only)

Nov. 2 Post-Death Planning and Trust AdministrationHalf Day (Vir tual Only)

Nov 4 Per sonal Financial Planning - Series (Investment Planning) - Half Day (Vir tual Only)

Nov 9-10 S taf f Training - Super visor y: Management & Leader ship Essentials (Vir tual Only)

For a full listing of all upcoming education programs visit www.icpas.org/education

Special Events

Oct. 23 Women's Leader ship Forum: The Power of You

Oct 30 Town Hall Forum (Rockford)

Dec 2 Town Hall Forum (Collinsville)

Dec. 11 Town Hall Forum (Oak Brook Terrace)

Dec 16 Town Hall Forum (Chicago)

Dec. 17 Town Hall Forum (Glenview)

Nov 9 Hottest Tax Topics for 2020 (Vir tual Only)

Nov. 10 Advanced Tax Planning S Corporations (Vir tual Only)

Nov 16-17 S taf f Training - Super visor y Plus: Management & Leader ship Essentials (Vir tual Only)

Nov. 17 Monitoring A Practical Approach - Half Day (Vir tual Only)

Nov 18 Not-for-Profit Yellow Book 10 1 - Half-Day (Vir tual Only)

Nov. 20 Buying and Selling a Business: Critical Tax and S tructuring Issues (Vir tual Only)

Nov 30 Select Estate & Life Planning Issues for Middle-Income Client - Half Day (Vir tual Only)

Nov. 30 Securing a Comfor table Retirement - Half Day (Vir tual Only)

Dec 1 Advanced Trust Issues: A Roadmap for Success in An Increasingly Complex Area - Half Day (Vir tual Only)

Dec 2 Risk Assessment: A Practical Approach - Half-Day (Vir tual Only)

Dec. 4 Internal Control and COSO Essentials for Financial Manager s, Accountants, and Auditor s (Vir tual Only)

Dec 7 GAAP Basis Governmental Repor t Review 2020 (Vir tual Only)

Dec 8 Modified Cash Basis Governmental Repor t Review 2020 (Vir tual Only)

Dec. 9 School Districts and Related Single Audit Repor t Review 2020 (Vir tual Only)

Dec 14 Advanced Governmental Repor t Review 2020 (Vir tual Only)

Dec 14 Best Practices for Payroll Taxes and 1099 Issues (Vir tual Only)

Dec 16 Advanced Individual Income Tax Return Issues (Vir tual Only)

Dec 17 Real Estate Tax Boot Camp (Vir tual Only)