Insight Magazine - May / June 2010

1 Alliant loan rates as of 04/01/2010. 2 Source: Illinois average bank rate provided by National Association of Federal Credit Unions in cooperation with Datatrac Corp. as of 04/01/2010. 3 Alliant vehicle rates as of 04/01/2010. Loan approval, APR and downpayment required based on payment method, creditworthiness, collateral and ability to repay. Rates include automatic payment option. Rates are 0.4% higher without automatic payment. Rates, terms and conditions are subject to change. APR = Annual Percentage Rate. Add 1% for 84 month term. Terms up to 60 months for loan amounts less than $20,000. Terms up to 72 months for 2009 or 2010 models with a loan amount of $20,000 or more. Terms up to 84 months on new vehicle loans of $25,000 or more. 4 Alliant HELOC Rates as of 04/01/2010. Rates include automatic payment option. Rates are 0.4% higher without automatic payment. Offer subject to credit approval, which includes verification of application information and receipt of collateral documents. Maximum Loan to Value of up to 80% depending on the state in which the property is located; Loan to Value is 75% in AZ, CA, CT, FL, HI, MA, MD, MN, NJ, NV, OH and VA. HELOC not available in all states. Initial rate is based on loan amount, Loan to Value and credit history. The APR is a variable rate and adjusts annually (starting on the anniversary date of

Garelli Wong and Jackson Wabash are Chicagoland’s experts in financial recruiting and staffing.

Our team unites employers with the right accounting and finance talent for direct hire, temporary and consulting assignments. We look and listen beyond the job description to combine the right skills with the desired experience.

To learn more about our dedication to finding the right fit, visit us on the web or call your local office.

Finding the perfect fit doesn’t have to be a challenge, it’s what we do.

FIRST W O R D

I N S I G H T S TA F F

Publisher/ICPAS President & CEO Elaine Weiss

Editor-in-Chief/Director of Publications Judy Giannetto

Creative Services Director Gene Levitan

Creative Services Manager Rosa Garcia

Publications Specialist Derrick Lilly

National Sales & Advertising Angie VanGorder

YGS Group, 3650 West Market Street, York, PA 17404

P: 800 501 9571 x176 F: 717 825 2171

E: angie vangorder@theygsgroup com

Circulation/Member Services Director Ron Jankowski

Editorial Offices: 550 W Jackson Blvd , Suite 900 Chicago, IL 60661

I C P A S O F F I C E R S

Chairperson, Sara Mikuta, CPA Leaders Bank

Vice Chairperson, Robert E Cameron, CPA Cameron Smith & Company PC

Secretary, Daniel F Rahill, CPA KPMG LLP

Treasurer, James P Jones, CPA

Edward Don & Company

Immediate Past Chairperson, Lee A. Gould, CPA/ABV, JD, CFE, CFF Gould & Pakter Associates LLC

I C PA S B O A R D O F D I R E C T O R S

Brent A Baccus, CPA, Washington Pittman & McKeever

William P Graf, CPA, Deloitte & Touche LLP

Edward J. Hannon, CPA, JD, Freeborn & Peters LLP

John A Hepp, CPA, Ph D, Grant Thornton LLP

Cara C Hoffman, CPA, Blackman Kallick LLP

Geralyn R Hurd, CPA, Crowe Horwath LLP

Leif J Jensen, CPA, Leif Jensen & Associates Ltd

Elizabeth A Murphy, CPA, PhD, DePaul University

Annette M O’Connor, CPA, RR Donnelley & Sons Company

Michael J Pierce, CPA, RSM McGladrey Inc

J Bradley Sargent, CPA, Sargent Consulting Group LLC

Edward H Stassen, CPA, Recycled Paper Greetings Inc

Reva B. Steinberg, CPA, BDO Seidman LLP

I n a n a n a l y s i s c o n d u c t e d b y C a r e e r C a s t , “ a c c o u n t a n t ” ranked 9 out of the “20 best jobs in 2010” cited. CNN Money ranked CPAs at 6 in a list of the “Top 50 Best Jobs in America ” The Bureau of Labor Statistics predicts the employment of auditors and accountants will grow by 22 p e rc e n t b e t w e e n 2 0 0 8 a n d 2 0 1 8 , f u e l e d b y c h a n g i n g financial laws and government regulations, globalization and a greater emphasis on accountability, transparency and controls in financial reporting.

And although all signs point to the fact that the profession i s d o i n g w e l l , e v e n i n a t o u g h e c o n o m y, t h e n u m b e r s don’t tell the whole story

It’s still a challenging, volatile work environment out there You need to remain valuable in a changing marketplace; perhaps you’ve taken on new responsibilities and need to fine tune your skills to keep on top of them; perhaps you’ve made a job change and find that you’re faced with unfamiliar issues

In good times or bad, there can be a discrepancy between the global picture and the local one, between what you know and what you need to know. The Society is here to close the gaps. With an ear to what our members are saying, we’re continually developing tools and programs with you in mind

Trying to attract new customers? List your business in our new Find a CPA directory. Need to brush up on the hiring process? Our online Career Center offers members-only programs on subjects like social media, professional relationships and transitional stress

Want to know more about what’s going on in the field or the latest professional developments? Low-cost webcasts keep you up-to-date on trends and developments, and our conferences, courses, member forums and chapter events offer opportunities to learn and network

If you haven’t visited our website [icpas org] lately, just take a look at what we have to offer There always will be a demand for what CPAs do And when CPAs need a little balance between life’s realities and their own personal growth and success, the Illinois CPA Society is here to help

INSIGHT is the official magazine of the Illinois CPA Society, 550 W Jackson, Suite 900, Chicago, IL 60661, USA Its purpose is to serve as the primary news and information vehicle for some 23,000 CPA members and professional affiliates 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 (ISSN-1053-8542) is published six times a year, in February/March, May/June, July, August, September/October, November/December, by

CHAIR’S MESSAGE

I am humbled by being elected to the chair of the Illinois CPA Society Being a CPA has opened so many doors in my life This profession is one that I am proud to be a part of From the time I walked across the stage to receive my certificate in 1980 to now, 30 years later, the words Certified Public Accountant have been very important to me. And I know those words are just as important to all of those who are members of the Society

It is that membership that the Board of Directors and I are very proud to serve It has been our focus to “Enhance the Value of the CPA Profession,” and we do it through so many programs that I must admit I’m continually amazed by what’s available to our members all at the click of a mouse

Let me tell you about a few of our areas of focus

With the economy continuing to batter those in all areas of our profession, and with so many of our fellow members out of work, we will continue to provide career transition services, trying to steady footings in a shaky job market

In the face of standards and regulation overload, we will continue to bring you up-todate webinars and conferences to help you effectively navigate our changing environment, with significant value for the dollars spent.

About Sara Mikuta, CPA

Current Position

CFO, Leaders Bank, Oak Brook, IL

CPA Certified 1980

ICPAS Board Service Treasurer (2008-09); Vice Chairperson (2007-08/2008-10); Director (2005-07)

Current Committee Service

Community Structure & Volunteerism Task Force (2005-10); Executive Committee (2008-10); Finance & Treasury Committee (2008-10, chair 2008-09); Finance Committee (chair, 2008-09); Illinois CPAs for Political Action (2008-10); Industry & Business Advisory (2008-10); Lifetime Achievement Award Task Force (2006-10); Young Professionals Group (2007-10)

Former Committee Service Audit Committee (2008-09); Banking Conference Task Force (1993-2006); Board Governance & Leadership Task Force (2007-09); CCFL Advisory Group (2007-08); Financial Institutions Committee (2000-08, chair 2003-07); Financial Literacy Advisory Task Force (2006-07); Future of the Show Task Force (2008-09); Public Service Award Task Force (2005-06)

We will continue to ensure that this is a career of choice for high school and college students through the work of our Students and Young Professionals Group and Student Ambassadors I really can’t wait for the new CPA banquet and to shake hands with our future, emerging leaders I challenge all of you to bring them into your organizations and learn from them.

What’s more, diversity continues to be paramount in making the profession vibrant and exciting, and we will continue our efforts in this area as well

So many of the things the Society does are immeasurable funny coming from a CPA But if just one person finds new employment through our services, a firm gains a new client who searched our Find a CPA directory, a student benefits from one of our many scholarships, a recent grad becomes a CPA, or a member of the military gets their taxes done by one of our volunteers, that’s success to me.

I think opportunities to give back to the community are also very much needed in this environment. Being a CPA has led me to explore philanthropic work My family knows that I’ve always had a hard time saying “no” to volunteering for another committee, board or association, but it has always been a wonderful part of my career It’s my way of giving back to a profession that has done so much for me. In fact, I often think it has been the best part of my career I often tell people that I earn more “psychic” income from this; it really has made me a richer person

The Society provides such wonderful volunteer opportunities for all of us, and you may be surprised by what you learn when you do something that stretches you a bit and takes you out of your comfort zone.

I look forward to this next year and assure you that the Board and I will have your best interests at heart

Lastly, I would be remiss if I didn’t thank Lee Gould for his guidance as our chair this past year The Society could not have asked for a better person to guide us

Sara Mi kuta, CPA

Love Your Job?

According to an annual Adecco Group North America [adeccousa com] online survey, fewer US workers (72 percent) love their jobs in 2010 than in 2009 (78 percent) Just having a job isn’t cutting it anymore, either Only 39 percent feel the economic situation has caused them to appreciate their jobs more, down considerably from the 55 percent a year ago What ’ s more, a mere 17 percent of workers are willing to work harder to avoid layoffs, and only 19 percent are willing to work longer hours. The survey also reveals that 26 percent of Generation Y workers are nervous about the instability of their jobs, and 27 percent are less satisfied with their jobs than last year Among Generation X workers, 51 percent say they would "do over " their careers

&

SEEN H E A R D

Fraudulent Activity Rising

The Institute of Internal Auditor ’ s Knowledge Alert: Emerging Trends in Fraud Risks study has found that acts of fraud have risen since the recession began, and likely won’t slow down anytime soon Theft of company property and resources is the fastest-growing fraud reported, followed by embezzlement, including expense-account and third-party/vendor fraud.

To lower your chances of being a victim, take a page out of internal audit ’ s book:

n Increase fraud awareness, communication and training throughout the organization

n Review systems in place and their corresponding policies, procedures and controls.

n Perform regularly scheduled audits that monitor highrisk areas

n Implement a continuous audit process.

n Perform risk assessments and risk-based audits

n Increase coordination and cooperation with internal and external groups and other organizational programs.

n Conduct or assist in fraud investigations

n Perform data-mining and analysis

Seven Links to Free Cash

State treasuries and other agencies are holding billions of dollars in unclaimed assets from inactive checking and savings accounts, payroll checks, utility deposits, tax refunds, stock certificates, certificates of deposit, insurance benefits, pension payments and safe - deposit box contents These websites will help you determine whether any of it is yours or your client ’ s

80%

unclaimed.org: The National Association of Unclaimed Property Administrators (NAUPA) is a nonprofit organization representing state governments that actively find and protect unclaimed funds

missingmoney.com: An NAUPA-endorsed website that provides searchable databases of lost funds for nearly every state and provincial government

irs.gov: The site will help you track down unclaimed tax refund checks

demutualization- claims com: Find unclaimed stock shares in major insurers that have converted from mutual life insurance companies to publicly traded firms

pbgc.gov: Search the Pension Benefit Guaranty Corp ’ s directory to see if you ’ re owed employee benefits

Source: hewitt Associates

fdic gov: Access a list of unclaimed insured deposits at firms that closed between 1989 and 1993 treasurydirect.gov: Track down lost or forgotten savings bonds, and Treasury notes and bonds from 1974 or later

50 percent

of executives in large companies say office politics get in the way of business and need improvement

Source: nfi research

Business Lunches Pay for Themselves

Breaking bread with key contacts is good business, according to a recent Robert Half Management Resources [roberthalfmr com] survey of 1,400 CFOs In fact, 36 percent of executives surveyed said their most successful business meetings outside of the office are conducted over a meal Follow these tips to make your next out- of-the - office business meeting a winner:

n Choose the right location: Select a restaurant that is quiet, easy to find, and provides excellent food and service Make sure the menu has enough variety to accommodate anyone with dietary restrictions

n Arrive early: Plan to get to the meeting before your guests, so you can select a comfortable spot and be there to greet them.

n Stay on schedule: Postpone talking shop until after you ' ve ordered, and don't let the meal go on too long if your client has limited time to meet

n Give them your undivided attention: Never take cell phone calls or check email at the table

As the host, it's your job to make sure the meeting is productive and on topic

Confidence in Retirement

In an Investment Company Institute [ici org] survey of 3,000 households, 73 percent said they are confident that retirement plan accounts can help people reach their retirement goals Seventy-eight percent of defined contribution plan participants and IRA owners expressed confidence Even larger majorities supported 401(k) system features, such as tax advantages and payroll deductions.

UN Calls on Former ICPAS Chair

The United Nations Conference on Trade and Development (UNCTAD) recently invited Belverd E Needles Jr , Ph D/CPA to join the Consultative Group to its Intergovernmental Working Group of Experts on International Standards on Accounting and Reporting (ISAR) This group strives to assist developing countries and countries with economies in transition in their efforts to harmonize national reporting standards and codes with IFRS requirements

“More than 100 countries in the world have adopted IFRS Most of those countries are developing countries and emerging economies The problem they have is whether they have the technical expertise in those countries to actually carry out those standards,” says Needles, a member of the Illinois CPA Society since 1972, the Society ’ s former board chair and current president of the CPA Endowment Fund of Illinois Board of Directors

As Needles explains, “Most countries adopt IFRS except in the areas they don’t want to Singapore, for example, has adopted IFRS, but there are eight major categories where they have not adopted IFRS standards, so their statements are not comparable with those of other countries What that does is undercut the major objective of harmonization of reporting standards, which is to get comparability from country to country ”

With 30 years of involvement in international standards, Needles is “excited about this opportunity,” and hopes his participation in this select group will help to “achieve some good ”

“When you think about it, a lot of developing countries only have a handful of public companies that have their stocks traded, and they depend a lot on foreign investment in order for their countries and capital markets to grow, ” says Needles, who is also an Ernst & Young Distinguished Professor of Accounting at the School of Accountancy at DePaul University, vice president of education at the American Accounting Association, and a partner at Needles & Powers Inc in Winnetka, Ill “This will facilitate the flow of capital into those countries in a very legitimate way ”

Bonuses Are Best

The majority of today ’ s finance execs say cash is still king in employee recognition. Forty-six percent of the CFOs Accountemps [accountemps.com] interviewed for its survey cited bonuses as the most effective way to acknowledge hard work and a job well done Other leading rewards for accounting teams include: Time off (21 percent), department lunches and social gatherings (15 percent), and tickets to sporting or entertainment events (4 percent) Twelve percent of CFOs offer no rewards

96 % of bank executives oppose governmentset compensation parameters.

Source: Grant Thornton

Right on Schedule

IRS

Announcement 2010-9 (the Announcement), issued on January 26, proposes a separate disclosure schedule to be filed with business income tax returns whose total assets exceed $10 million. The disclosure schedule will require information regarding “uncertain tax positions” specifically, a concise description that will allow the IRS to determine the nature of the issue (including the rationale for the position) and a concise general statement of the reasons the position is uncertain

The description must contain:

n “The Internal Revenue Code sections potentially implicated by the position ”

n “A description of the taxable year or years to which the position relates.”

n “A statement that the position involves an item of income, gain, loss, deduction, or credit against tax ”

n “A statement that the position involve s a p e r m a n e n t i n c l u s i o n o r e x c l u si o n o f a n y i t e m , t h e t i m i n g o f t h a t item, or both ”

n “A statement whether the position involves a determination of the value of any property or right.”

n “A statement whether the position involves a computation of basis.”

In addition, the schedule will require t h e m a x i m u m a m o u n t o f p o t e n t i a l f e de r a l t a x l i a b i l i t y a t t r i b u t a b l e t o e a c h uncertain tax position

The Announcement indicates that disclosure will be required for each position for which a reserve has been established either under FASB Interpretation No 48, Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109 (FIN 48), or pursuant to other Generally Accepted Accounting Principles (GAAP), such as International Financial Accounting Standards (IFRS) and country-specific generally accepted accounting standards In addition, disclosure will be required for uncertain positions in certain situations where reserves have not been established, such as where the taxpayer has determined that the IRS has a general administrative practice not to examine the issue

Although the IRS cites United States v Arthur Young (465 U S 805, 815 [1984]) as support for compelling the taxpayer ’s risk assessments and reserve amounts, the Announcement indicates that the schedule will not require those items. It also indicates that the IRS

H a r v e y C o u s t a n , C PA is an Ernst & Young retired partner who currently consults on substantive technical and professional standards issues He has also served as an expert witness in a number of cases

i s p r o p o s i n g t o o t h e r w i s e r e t a i n i t s e x i s t i n g p o l i c y o f r e s t r a i n t d e s c r i b e d i n a 2 0 0 2 announcement, as well as its Internal Revenue Manual, which describes the situations in which the IRS will ask for “tax accrual workpapers” (generally where a taxpayer has entered “listed” transactions)

The Announcement invites comments on the proposal with particular interest in:

n “How the maximum tax adjustment should be reflected on the schedule so that it provides the Service with an objective and quantifiable measure of each reported tax position (e g specific dollar amount or by appropriate dollar ranges) ”

n “What alternative methods of disclosure of the amount at issue would allow the Service to identify the relative importance of the uncertain tax positions ”

n “Whether the calculation of the maximum tax adjustment should relate solely to the tax period for which the return is filed or to all tax periods to which the position relates, and whether net operating losses or excess credits should be taken into account in determining the maximum tax adjustment ”

n “How the related entity rules should be applied ”

n “Whether the scope of the Announcement should be modified regarding the uncertain tax positions for which information is required to be reported (e g positions for which no tax reserve has been established because the taxpayer determined the Service has a general administrative practice not to examine the position).”

n “Whether transition rules should be used or criteria modified to either include or e x c l u d e c e r t a i n b u s i n e s s t a x p a y e r s ( e g t h e p r o p o s e d t h r e s h o l d o f $ 1 0 m i l l i o n total assets) ”

n “How the new schedule should address taxpayers that initially did not record a reserve for an issue, but in later years do record a reserve.”

n “W h e t h e r t h e l i s t o f i n f o r m a t i o n p r o p o s e d t o b e i n c l u d e d s h o u l d b e m o d i f i e d , including whether certain information should be requested in some circumstances upon examination rather than with tax return “

It’s easy to see how the use of this schedule can dramatically change the relationship between taxpayers and the IRS, and, alarmingly, between taxpayers and tax preparers. Implementation of FIN 48 has already caused concern among businesses whose financial statements are subject to that FASB Interpretation Disclosure to auditors has long been problematic for clients who are worried about the loss of attorney-client privilege in instances where auditors request third-party opinions written to discuss the tax aspects of transactions. In the Textron case, which may end up in the Supreme Court, the First Circuit Court of Appeals supported work-product protection for tax-reserve analysis workpapers shown to auditors, but then withdrew its opinion and issued an opinion that went the other way

As far as the schedule that Announcement 2010-9 eventually might require, privilege or work-product protection are not issues This information will be disclosed with the return

According to a report of a comment made by Heather Maloy, commissioner of the Large and Midsize Business Division of the IRS, last February, the IRS needs this information in order to cut down on the audit time necessary to identify issues estimated at 25 percent. Ms Maloy stated that the new schedule is anticipated to first apply to 2010 returns filed in 2011 She also mentioned, according to the report, that although corporate taxpayers are the primary focus, the Announcement was not clear on its effect on other entities meeting the criteria. She believed that the most likely penalty for non-compliance would be the penalty for filing an incomplete schedule. Interaction with preparer penalties also is being looked at The close of the period for comments was originally set for March 29, but in February, the AICPA asked for a 60-day extension

I believe that a schedule providing more detail regarding uncertain tax positions ultimately will be required If that’s the case, it will result in a number of things Some taxpayers will not be as candid with their tax return preparers. Others will resist challenging the IRS on various positions. And it seems likely that identifying issues won’t be a significant part of the IRS’ examination of reporting taxpayers Hopefully, it will apply a realistic approach to issues whose potential for additional tax assessment is immaterial

More later

RETIREMENT INSIGHT

Off the Clock

Mark J Gilbert, CPA/PFS

is a principal in the financial advisory firm of Reason Financial Advisors, Inc. His 25+ years of finance and accounting experience includes 13 years in personal financial planning An ICPAS member since 1982, Mark currently serves in the Society ’ s IA/PFP Member Forum Group and on its Committee on Structure and Volunteerism

When you’re talking about retirement, client conversations sometimes evolve beyond the technical to something far more personal, and even emotional And it can make for some pretty uncomfortable moments on both sides of the desk Some clients might feel so emotionally paralyzed by the topic of retirement that they can’t take action or make the decisions they need to make

The longer decisions aren’t made and plans aren’t laid, however, the more difficult it is to deal with the issue, and particularly with the allimportant question, “When should I retire?”

In my experience, people tend to have a prec o n c e i v e d n o t i o n o f t h e r i g h t t i m e t o r e t i r e Maybe it’s due to a formative experience (such a s w h e n a p a r e n t o r o t h e r i n f l u e n t i a l a d u l t retired) or maybe it’s based on a strong desire to b e d o n e w i t h a l e s s - t h a n - s a t i s f y i n g c o m p a n y relationship In any event, the idea of the right age to retire is a powerful motivator

Added to that are the emotions wrapped up in a person’s sense of purpose. Some clients will use the time that retirement frees up to pursue the things they couldn’t pursue while working perhaps art or travel. Some will begin volunteer work with favorite charities Some will care for loved ones. Whatever the case, without addressing how they plan to fill up those hours, retirement might not be as rewarding as they’d hoped I’ve even seen clients opt to return to work.

And while there is no right or wrong answer to the question of when to retire, there are factors that will affect the decision

Health

Most clients will retire healthy enough to do the things they enjoy, regardless of their planned retirement date Unfortunately, though, others will need to shorten their time in the workforce because of their or their loved ones’ health issues. Advise your clients to frankly discuss their situations with their physicians, and to weigh the pros and cons of working until a certain retirement age

Lifestyle Expenses

Clients need to estimate their planned retirement living expenses even if it’s just a best guess All things being equal, the larger these expenses, the later a client’s retirement, and the bigger their nest egg

To arrive at an estimate, ask them to exclude expenses related to work (such as transportation, business wardrobe, unreimbursed business expenses, etc.) and factor in other expenses that are specifically associated with post-retirement such as leisure activities.

Discuss factors they might not have considered, such as inflation, future potential m

Income Sources

e n t ’s I R A a n d o t h e r a c c o u n t b a l a n c e plans, pensions and Social Security Bear in mind that the age at which optimal benefits are paid out will vary

IRAs and similar account balance-type retirement plans likely provide the greatest flexibility in starting benefits IRAs may be drawn upon with no penalty after reaching a g e 5 9 ½ , a n d e a r l i e r u n d e r s p e c i f i c c i rcumstances Traditional pension plans may provide benefits as early as age 55 at a subs t a n t i a l l y r e d u c e d l e v e l , w h i l e n o r m a l retirement age is likely defined as age 62 or 65 Social Security benefits generally can begin as early as age 62 at a reduced level, while normal retirement age may be anywhere from 65 to 67. If the client defers S oc ia l S e c urity be ne fits until a g e 70, the benefit amount increases

Financial Resources

The amount of liquid and illiquid investment assets accumulated over a lifetime of w o r k i s a s t r o n g i n d i c a t o r o f a c l i e n t ’s wherewithal to retire at a certain age

How much is enough to retire? A rule of thumb is that if withdrawals are limited to 4 percent of the investment portfolio in the first year, then increased annually for inflation, a balanced investment portfolio should grow sufficiently to last throughout the client’s life. Some planners argue that the 4percent figure should be increased to as much as 5 5 or 6 percent, with somewhat less confidence that assets will last throughout the client’s life

However, rules of thumb don’t consider unique situations. A customized retirement projection which considers specific financial facts and lifestyle goals is the better way to go. Discuss your client’s unique financial issues and encourage them to work with a qualified planner.

As a trusted advisor, you can provide your clients with the objective financial information needed to make an informed decision about when to retire You can also provide them with some insights into the emotional factors they’ll need to deal with.

upcoming events

May 27, 2010 - Chicago, IL

How to Measure Financial Success

Thomas L. Zeller, PhD, MBA, CPA Professor of Accountancy and University Scholar in the School of Business Administration at Loyola University Chicago

September TBA, 2010 - Chicago, IL

Designing & Implementing a Balanced Scorecard Framework

Mark Frigo, PhD, CPA, CMA Director, The Center for Strategy, Execution and Valuation, Kellstadt Graduate School of Business, DePaul University

December TBA, 2010 - Chicago, IL

Strategic Cost Analysis: Tools for Lowering Your Company’s Costs

John W. Hill, PhD, JD

Arthur M. Weimer Chair in Business, Kelley School of Business, Indiana University

Additional executive education classes and networking breakfasts are being added throughout the year.

Smart Phone IQ

By Daniel Dern

It's an increasingly rare professional who isn't using a smart phone like an iPhone or BlackBerry these days. For those lingering in the minority, a smart phone is a mobile device that's not only a cell phone, but also a PDA that can run local applications (or “apps”) and access the Internet "A smart phone offers instant-on email, calendar and contacts, and, of course, phone," explains TabletPCTalk.com Website Manager Chris de Herrera "These are the major things that everybody looks for "

B u t b e y o n d t h e h y p e , a r e s m a r t p h o n e s s m a r t enough to meet the work demands of out-of-office, on-the-go CPAs? Are the apps CPAs need available? And what can't smart phones do (or not do easily)?

Smart Phone, Smart Choice

As a visit to any electronics or wireless phone store makes clear, you ' ve got a large sometimes overwhelming range of smart phone choices, priced from around $100 to $600 This includes the highly visible BlackBerries and Apple iPhones, along with a plethora of makes and models from vendors like HTC, Motorola, Nokia, Palm and Samsung And there's quite a choice of potential carriers as well, including AT&T, Sprint, T-Mobile, Verizon, and sundry smaller players and resellers Factors that should drive your smart phone decision include,

O f t h e m a n y b u s i n e s s - u s e f u l s m a r t p h o n e a p p s , there are a growing number specifically relevant to CPAs and their clients. For example, "All the major accounting software vendors, like Intuit [Intuit com], Thomson Reuters [cs.thomsonreuters.com] and CCH [cch com] are moving elements of their products to smart phones," says Rick Telberg, president and chief executive of Bay Street G r o u p L L C , w h i c h p r o v i d e s c u s t o m research, marketing, strategic consulting and other services to the professional tax, accounting and finance community

n Which phones and carriers will support the apps you need?

n Which phones include the functional features you’ll need to deal with business outside of the office, for instance camera, video, keyboard, minimum display size, battery run-time?

n Which carriers offer coverage where you need it? For instance, do you expect to travel outside the United States, and if so, do you want to use a single phone?

n Will you need to "tether ” in other words, let your notebook/netbook (or other smart-phone users) access and use the smart phone's broadband data connection, via a cable, Bluetooth and/or WiFi? (Not all carriers offer plans that allow this )

Intuit QuickBooks Online, for instance, is available for the iPhone and BlackBerry, while Intuit's GoPayment can accept credit card payments on mobile devices. What’s more, ProOnGo Expense with Receipt Reader from Chicagobased ProOnGo LLC [ProOnGo com] allows CPAs and their clients to enter expense receipts by taking a picture with their mobile phone, extracting the data, filling out an expense report, and archiving a copy of the receipt image ProOnGo is available for BlackBerry, iPhone, Windows Mobile and Android

"For CPAs, it means clients are submitting accurate data on time and have reliably archived receipts, suitable for audits," says Phillip Leslie, ProOnGo

is here.

Looking for the most intuitive, cost-effective and complete XBRL solution? WebFilings takes the and complication out of XBRL mapping, tagging and reporting. Unlike “bolt-on” post-process solutions, our end-to-end SEC report management software enables accountants — not XML programmers — to tag SEC reports as they draft them. WebFilings is a revolution in regulatory compliance software, delivering the only complete, integrated solution to meet SEC reporting requirements.

Reduce Overhead, Save Days

Reduce Overhead, Days

Integrated, easy-to use XBRL tools and instant EDGAR conversion eliminate timeconsuming and costly internal and external processes.

Integrated, easy-to use XBRL and instant EDGAR conversion eliminate timeconsuming and costly internal and external processes.

Ensure Accuracy

Ensure Accuracy

Streamline the Process

Streamline the Process

Sophisticated data linking, document review and validation capabilities improve accuracy, transparency and compliance.

Sophisticated data linking, document review and validation capabilities improve accuracy, transparency and compliance.

Schedule a demonstration now e: demo@webfilings.com | p: 888-275-3125 | w: webfilings.com

Schedule demonstration now e: demo@webfilings.com | p: 888-275-3125 | w: webfilings.com

© 2010 WebFilings LLC

CEO "A small-business owner can snap a photo of their receipts, and their CPA sees the transactions show up in QuickBooks " ProOnGo also works with PayServe Systems and, according to Leslie, "We integrate with Excel spreadsheets, XML files, fax machines, and more "

Along with its broader browser-accessed SaaS (Software-as-aService) offerings, NetSuite [NetSuite com] offers NetSuite for iPhone, which includes BI (business intelligence) Business Performance dashboards, and access to customer and sales data, amongst other functions

"Our biggest strength is the ERP, the relationship of all the data to accounting," says Malin Huffman, principal product manager for NetSuite ”The iPhone app is really a viewer, a lookup and reporting tool,” Huffman notes, "It's not intended for data entry; it's more of an analytics tool formatted for the iPhone display "

"There are a few smart phone tools that CPAs really like," says De Herrera. "One, spreadsheets like Excel, and two, an HP 12c financial calculator application, which emulates the still popular HP 12c, and is used for quick calculations like interest, which you can't do easily in Excel."

One challenge, De Herrera cautions, is that "most smart phones can view spreadsheets, but only some smart phones can also create or edit them. This is both device and carrier dependent, in terms of which applications come pre-installed "

Along with CPA-specific and CPA-relevant applications, there’s a wide range of other smart phone business applications that CPAs find useful Nathan Clevenger, mobile practice director for the ITR Group, an IT services group, recommends Pixily [Pixily com], a document management and scanning service that makes documents searchable online (Pixily will either return or shred and recycle paper originals )

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n Yahoo Finance: Keep up with market activity, get the day ’ s top financial news, personalize your portfolio, and follow companies that are important to you

n MarketWatch: Keep up with breaking market and business news, real-time commentary and market data quotes You can also create a customizable market data watch list

n CNBC: Track real-time quotes and interactive charts before, during and after market hours direct from the NYSE & NASDAQ

n Bloomberg: Create a customizable home page from one of America’s most trusted sources of financial information.

n Morningstar: Garner highly respected independent investment research, and check out top mutual fund and stock picks

n Thomson Reuters News Pro: Stay current on the latest news, extensive global financial data, corporate information and interactive financial charting You can also create a customizable watch list

n Black Gold Oil, Gas and Gold Price Tracking: Monitor pricing for crude oil, gold, gas, natural gas and heating oil while you ’ re on the go

Source: YoungMoney com

Smart Safety Tips

Smart phones pose the same security risks as any other mobile device, so be sure to,

n Password-protect the device

n Encrypt any sensitive data.

n Encrypt confidential data stored on removable media

n Use VPNs or other secure connections to access company networks or related websites

In his article, "11 Apps For the Business Professional" (iPhone Life, Winter 2010), Clevenger recommends scanR Business Center [scanr com] for creating PDFs for email or faxing, using your smart phone camera; DayTracker [TheDayTracker com], which captures mileage including via Google maps or GPS to Excel reports; and iDcrm [numenes com], an iPhone client for organizations that use Microsoft Dynamics CRM

W h a t ’s m o r e , " C i t r i x ' s G o To M y P C [ g o t o m y p c c o m ] c a n b e hugely valuable if it helps you retrieve a document you left at the office," says Telberg. There are also e-fax apps like MyFax, he says, which allow CPAs to receive faxes as message attachments

For BlackBerry users, Telberg recommends tools available from appworld blackberry com, including RepliGo Reader (similar to Adobe Reader); inForm, for creating and distributing forms, surveys, databases, and micro-applications; and Database Viewer Plus

One big thing that out-of-office CPAs need is access to work

d , v i e w a n d f o r w a r d Wo r d d o c um e n t s , s p r e a d s h e e t s , P D F s , e m a i l m e s s a g e s , e t c e t e r a . C o n t e n t management systems like Autonomy iManage WorkSite [interwoven com] allow CPAs do this from their Blackberrys, incorporating functionality for printing or faxing documents, without having to go through IT or somebody else back at the office.

"The iPhone or smart phone is not a replacement for a netbook, however," De Herrera states "It doesn't have the screen size, readability, typing speed, CPU speed, or ability to run regular Windows desktop applications "

For some models and apps, you can finesse the display and keyboard size by accessorizing with a RedFly Celio [celiocorp com], currently available with a 7-inch or 8-inch 800x600 display and a full-sized keyboard With Windows Mobile, that's enough to edit some Excel spreadsheets. But not all applications will scale properly to the Celio's display.

Clevenger points out that, "A lot of mobile workers in the accounting industry bring their own 17-inch laptops, plus a second monitor, plus a laser printer. But if a smart phone can make you productive for even one or two extra hours a week, you'll be recouping your investment and being a lot more responsive to your clients "

"A smart phone lets you do anything the client can do, so you can be in touch with your client the way the client wants you to be in touch," says Telberg. "For example, if the client is moving data and documents through their smart phone, they expect you to be able to track it through yours Our research for the white paper, The Connected Accountant: The Growing Mobility Trend, demonstrates that CPA smart-phone users are more efficient, happier in work/life balance, make more money, and generally run their businesses better "

keep your career on track

Red Flag Warning

Ho w w i l l th e F TC ’ s Red F l ags Rul es i m pac t yo u?

By Carolyn Tang

In 2009, the number of identity fraud victims in the United States reached 11 1 million, up 12 percent from 2008. They totaled a projected $54 billion in losses, according to a Javelin Strategy and Research study

In an effort to target identity theft at its point of origin, the Federal Trade Commission (FTC) has established the Red Flags Rules, which require certain types of business to implement a written Identity Theft Prevention Program that includes four elements: Reasonable policies and procedures to identify red flags; procedures to detect the identified red flags; a statement of appropriate actions to be taken when red flags are detected; and periodic re-evaluation of the program to reflect any new risks “Red flags” are defined as suspicious patterns or practices that indicate the possibility of identity theft

Although the Rules don’t necessarily shift the burden of bad debt away from creditors, they do add a new element “The creditor who shares d e b t o r p e r s o n a l i n f o r m a t i o n w i t h t h i r d p a r t i e s , like a collection agency, is now potentially liable f o r a n y b r e a c h l e a d i n g t o t h e d e b t o r ’s i d e n t i t y theft,” explains Brad Sargent, managing member o f T h e S a rg e n t C o n s u l t i n g G r o u p , L L C “ B u s inesses that provide credit must know the policies and procedures of all of their strategic partners regarding identity theft ”

While the Rules have been in effect since 2008, actual enforcement was delayed until June 1, 2010 to give businesses time to develop and implement their written Identity Theft Prevention Programs

The Red Flags Rules specifically apply to “financial institutions” and “creditors,” although these terms are broadly defined And it’s partly for this reason that there’s been a delay in enforcement institutions are asking, do we fall under the Rules or not?

T h e F T C d e f i n e s f i n a n c i a l i n s t i t u t i o n s a s “ a state or national bank, a state or federal savings and loan association, a mutual savings bank, a state or federal credit union, or any other person t h a t d i r e c t l y o r i n d i r e c t l y h o l d s a t r a n s a c t i o n account belonging to a consumer.” Creditors are defined as “businesses or organizations that regularly defer payment for goods or services, or provide goods or services and bill customers later ” The FTC cites finance companies, car dealers, mortgage brokers, utility companies and telecommunications companies as examples. However, it also states that “accepting credit cards as a form of payment does not, in and of itself, make an entity a creditor ”

“Covered accounts generally relate to customers who are potential ID theft targets, individuals or small companies such as sole proprietorships,” explains Don Blumenthal, principal of DMB Associates, LLC and an adjunct professor at the University of Michigan School of Information Entities whose only clients are major corporations, he adds, likely would not have to be concerned with the Red Flag Rules on a day-to-day basis He emphasizes, though, that the Rules do impose an obligation of periodic client reviews to ensure that status under the Rules doesn’t change.

Having the resources to comply with the Rules is another bone of contention, especially for smaller businesses “As a small-business owner myself, it can be a tremendous drain on company resources to design, implement and document a new program,” says Sargent. “Training staff and monitoring the program takes additional time and energy Certainly, larger entities with greater resources are more capable of responding and complying ”

Historically, says Blumenthal, the FTC has taken risk-based approaches to information security and privacy issues “There are no rigid ‘one-size-fits-all’ requirements A business’ written Identity Theft Protection Program has to include elements outlined in the regulations, but the details of those elements can be tailored to the business realities of any given organization,” he explains.

Having said that, Sargent does expect the FTC to enforce the Rules vigorously “I would expect to see some high-profile entities facing large fines soon after enforcement begins a tactic that usually provides extra incentive to other financial institutions and creditors to comply,” he says.

While many organizations already have fraud detection measures in place, the Red Flags Rules ensure that those measures address elements proven to be critical in the prevention of identity theft And, since the Rules focus specifically on identity theft, one of the fastest-growing sectors of fraud, they are very precise “This is far more specific than the typical fraud prevention program,” Sargent explains.

The Rules also make it a point to engage the highest echelons of management This may impact smaller businesses as well. “The Rules are very clear regarding the responsibilities of boards, officers and others within a business that simply may not exist at small to mid-sized companies,” says Sargent.

Lawyers are a single exception to the Red Flag Rules Earlier this year, the American Bar Association (ABA) was successful in a motion for summary judgment for declaratory and injunctive relief from the Rules

“The ABA is gratified that the court recognized the historic role of active state regulation of lawyers, the dearth of examples of identity theft involving lawyers and their clients, and the absence of any evidence that Congress intended the Red Flags Rules to apply to lawyers,” said Carolyn B. Lamm, ABA president.

Whether this exception will set a precedent for other professions can only be determined by a court; however, the American Medical Association and the American Institute of CPAs (AICPA) are also working to achieve the same exemption

Per the FTC’s interpretation, the Rules apply to public accountants because CPA firms typically bill clients for services rendered, therefore technically qualifying those firms as “creditors ” However, the AICPA filed a lawsuit in the US District Court for the District of Columbia, stating that the Red Flags Rules would impose onerous and unnecessary r e q u i r e m e n t s o n A I C PA m e m b e r s , a n d f u r t h e r t h a t i n d o i n g s o , t h e F T C w o u l d b e exceeding its statutory authority. The AICPA case, filed in November 2009, references the ABA decision that exempts lawyers from the Rules (Note: There had been no Senate action on the bill at press time.)

“We do not believe that there is any reasonably foreseeable risk of identity theft when C PA c l i e n t s a r e b i l l e d f o r s e r v i c e s r e n d e r e d , ” s a i d A I C PA P r e s i d e n t a n d C E O B a r r y M e l a n c o n i n a N o v e m b e r p r e s s r e l e a s e “ A s t r u s t e d a d v i s o r s , C PA s a r e p e r s o n a l l y acquainted with their clients and already adhere to strict privacy requirements governing identifying information.”

Will the rules work? Sargent suspects that if they were in place earlier, there might have been a material reduction in the amount of mortgage/loan fraud that contributed to the real estate market meltdown What’s more, when companies adhere to the Rules, it’s very likely that many cases of identity fraud will be prevented before they even happen Certainly keen awareness is one of the best deterrents, and at the very minimum, the Red Flags Rules will accomplish this goal

“If nothing else, the publicity concerning the Red Flags Rules good, bad, or indifferent has raised awareness of the issues and signs that could indicate the potential for identity theft,” says Blumenthal. “As protection programs are implemented, I’m certain that they will catch identity theft red flags that otherwise would have gone undetected ”

Which Business Bank?

By Selena Chavis

In the world of business banking, one size does not fit all. Each option from megabanks to boutique community banks brings with it a unique culture and client approach

While it’s not rocket science, industry professionals agree that the responsibility of selecting a business bank shouldn’t be taken too lightly, and that best practices are a must In an era where so many banks are facing crisis, best practices are more important than ever, in fact

Consider this: 140 banks failed in 2009, according to FDIC statistics, and predictions suggest that many more are on the way “We still have 400 to 500 banks that are expected to fail in this economic climate,” explains Sam Thacker, a business finance expert with Allbusiness com “The FDIC estimates that there will be a good percentage of regional banks that will be under a great deal of pressure this year ”

H e r e , t h e n , a r e F i v e B e s t P r a c t i c e s f o r Selecting a Business Bank

1. Weigh the risk

Assessing a bank’s potential risk is a crucial first step in making an informed decision, s a y s T h a c k e r S p e c i f i c a l l y, h e s a y s , g a i n knowledge of its Tier 1 Capital essentially the measure of a bank’s financial strength based on core capital, comprised of equity c a p i t a l a n d d i s c l o s e d r e s e r v e s Yo u c a n usua lly find this informa tion in qua rte rly and annual public filings and documents

“ E i g h t p e rc e n t a n d a b o v e i s g o o d , ”

Tha c k e r e x pla ins “If be low 5 pe rc e nt in Tier 1 Capital, you need to look closely at that bank and whether it will survive over the long haul ”

Business Bank Finder

O t h e r t h i n g s t o l o o k o u t f o r a r e h o w much “underwater” real estate a bank may be holding, as well as the amount of consumer credit card debt. “There is a commercial real estate issue that has not flown through the economy yet,” says Thacker “A question you might ask a bank is, ‘How much commercial real estate do you have in your portfolio?’”

In terms of credit card debt, he notes that, historically, the consumer credit card write-off for banks runs about 2-percent higher than the national unemployment rate The industry expectation is that banks may write off upwards of 14 percent in the coming year

2 Value relationships; watch fees

“Relationships are key when it comes to banking,” notes Ken Gaebler, president of Gaebler Ventures, a Chicago-based investment firm. “When choosing a bank, you really have to assess not only the services offered, but also the personnel Find out who will be managing your relationship and make sure you feel comfortable with that individual ”

It’s about aligning philosophies, which means that a company will want its bank to understand its processes, says Mark Robertson, CPA/CFF/CIRA/CM&AA, a director with Blackman Kallick

ILLINOIS CPA SOCIETY

Monthly Chapter Activities

Central Chapter – Central Illinois

Various CPE Meeting – Quarterly – Various locations

Chicago Metro Chapter – Chicago

Last Wed Chicago Metro Chapter Meeting – Monthly - Chicago – (Downtown)

3rd Mon Chicago Metro Chapter Networking Breakfast – Chicago – (Downtown)

Chicago South Chapter – Far South Chicago and Southwest Suburban Chicagoland

3rd Thurs CPE Meeting – Monthly – Palos Heights

1st Thurs Networking Breakfast – Homewood

Next to Last Wed Networking Breakfast – Orland Park (1)

C H A P T E R S

3rd Tue Practice Management Forum – Tinley Park

3rd or 4th Tue (varies) CFO/Controller Forum – (Location Varies)

3rd Thurs Networking Breakfast – Chicago (Beverly)

Last Wed Networking Breakfast – Orland Park (2)

Fox River Trail Chapter – Far Northwest Suburban Chicagoland

Last Thurs CPE Meeting – Monthly – Lake Zurich

2nd Fri Networking Breakfast – Fox River Grove

Fox Valley Chapter – West Suburban Chicagoland

Various CPE Meeting – Naperville

1st Wed Networking Breakfast – Oakbrook

2nd Tue Networking Meeting – Will County

2nd Wed Networking Breakfast – Naperville

4th Mon Small Practitioner Tax Group – Wheaton

4th Fri Networking Breakfast – St. Charles

North Shore Chapter – Far North Chicago and North Shore Suburban Chicagoland

3rd Tue CPE Chapter Meeting – Monthly – Northbrook

2nd Mon Chapter Industry & Business Forum – Monthly–Skokie

1st Mon Chapter Networking Breakfast – Monthly-Chicago

1st Fri Chapter Networking Breakfast – Monthly-Glenview

O’Hare Chapter – Northwest Suburban Chicagoland

3rd Wed CPE Meeting - Monthly – Schaumburg

2nd Thu Networking Breakfast –Buffalo Grove

3nd Fri Networking Breakfast – Elk Grove Village

Western Chapter – Western Illinois

Various CPE Meeting – Various locations

Check the ICPAS website weekly for new events posted. Please view the most current schedule and get meeting details at www.icpas.org

Questions: Contact: Becky Whitehurst, Chapter Relations Coordinator Email: whitehurstb@icpas.org or call 800.993.0407 (Illinois only)

“Whether you are an accountant or a widget maker, the bank needs to understand the business,” he explains “Do you want a bank to cut its teeth on a new industry through your organization?

“Banks that are more likely to give you access to senior bankers may have higher fees,” he continues. “Unfortunately, the trend these days is that many banks put junior employees on the front lines of relationship management. If you find that your contact at the bank is inexperienced with limited authority to make decisions, you may want to consider talking to another bank I once worked with a small boutique bank The fees were much higher than if I had gone with the megabanks, but I felt like the bank could do more for me in terms of providing access to capital, so the fees were worth it ”

That said, Gaebler also cautions organizations not to be “nickel and dimed.”

“All things being equal between two banks, you clearly want to go with the bank that has lower fees. However, it's sometimes a labyrinth of fine print that you have to work through to understand the bank's fees,” he explains.

Pay attention to the entire relationship package, says Robertson “Some may entice you with a low interest rate loan, but then they may charge you higher-than-average fees on daily transactions and services,” he warns Look out specifically for fees associated with transactions such as wire transfers and stop payments.

buy into “bigger is better”

T h a c k e r c l a s s i f i e s b a n k s i n t o t h r e e c a t e g o r i e s m e g a b a n k s , r e g i o n a l b a n k s a n d c o m m u n i t y b a n k s C u r r e n t l y, o f t h e 8 , 0 0 0 banks in the United States, approximately 7,500 fall into the community bank category, or those with assets of less than $1 billion

Wi t h t h e e x c e p t i o n o f a f e w s e r v i c e s t h a t w o u l d b e u s e d b y large, international companies, Thacker feels that there are very few differences in the types of services you get from a megabank versus a community bank “The types of things the megabanks can o f f e r o f t e n c a n b e d o n e o n t h e c o m m u n i t y b a n k l e v e l , ” h e explains “The vast majority of accounting professionals will find t h e b e s t o p p o r t u n i t i e s f o r r e l a t i o n s h i p s a m o n g c o m m u n i t y o r regional banks ”

On the flip side, Robertson cautions that being the largest customer a bank services is a big red flag “You can potentially cause problems for a bank from a regulatory perspective,” he explains He describes a situation where a startup organization established a relationship with a community bank and then grew to a level where it needed a $20 to $30 million loan Based on a bank’s capital, ”Its board of directors or loan committee may not be able to approve such a large loan for a single customer due to the risk to the bank should the loan go bad,” he explains “Bank regulators also pay close attention to concentration risk in a bank’s loan portfolio and may take issue with a single customer representing a large portion of the bank’s total loans ”

4. Find a bank that understands your industry

“There was a time when banks tended to specialize in a particular industry,” says Robertson. “But it seems they have gotten away from that for the purposes of diversifying their loan portfolios ” Nevertheless, he suggests that businesses still ask for references from customers within the same industry or from those who are at least aligned with the industry.

“A banker who knows a particular industry well can serve business interests better than a banker who doesn't understand the economic climate or current challenges for a business,” says Gaebler “For example, a startup financial services firm may want to obtain an SBA loan In this case, it makes sense to look for banks that have a strong track record in SBA lending. Always check the bank's recent lending activity If it was an SBA active lender three years ago but is no longer actively involved with SBA loans, that's an important thing to know ”

From an accounting perspective, Thacker explains that some banks have a strong “professional and executive (P&E)” lending department geared towards specific professions, such as accounting, legal and medical. “They cater more to those groups than a normal commercial lender would,” he says “The bank’s goal is to bring in the firm’s business as many deposit relationships as possible A lot of CPAs don’t know to ask about a P&E department ”

There are many ways to make a deal work and we have tried them all at one time or another. Our reservoir of experience will serve you well, whether you are an owner gettingwhat you deserve for your practice or a buyer seeking a new adventure. Accounting PracticeSales is always working for you. Call Trent Holmes today and let’s talk. 1.800.937.0249 trent@accountingpracticesales.com

5. Get advice from the trenches

At the end of the day, professionals agree that one of the best practices in choosing a business bank is to ask around Word-of-mouth referrals are an underrated resource

“Comparison charts can be misleading. A banker once gave me a comparison chart that indicated his bank was the best in the area Based on the chart, it looked like he was correct,” Gaebler r e c a l l s . “ H o w e v e r, t h e p i e c e o f t h e p u z z l e t h a t w a s n ' t r e a d i l y apparent was that the bank only worked out of grocery stores, and there was no separate treatment for business accounts Business owners had to wait in line along with other bank patrons, and those lines were incredibly long. So, on paper the bank looked great, but in reality it would have been a nightmare ”

3. Don’t

The Illinois CPA Society, together with the AICPA, is once again looking for outstanding accounting profession, their

experienced leaders

•mentoring other professionals

•public or community service

•major or unique contributions to the profession

•leadership in workplace improvements

•authorship of professional articles

emerging leaders

•demonstration of leadership

•contributions to the profession

•creation and implementation of unique initiatives in the workplace

•public or community service

•involvement with her alma mater

For more information or to nominate a deserving woman, visit www.icpas.org, or call 800.993.0407, ext. 220.

Deadline for submissions is June 7, 2010

Defense Plan

Do yo u n eed

By Sheryl Nance -Nash

Mistakes happen Things go wrong Not all clients are happy clients

“Maybe you prepared a financial statement for someone who now says they suffered a loss because of the statement, or you advised a client on a business decision and the business partner now says you did something wrong, or unknowingly a client’s information gets into the hands of a third party and they sue you for disclosing confidential information,” explains Peter Sullivan, a partner with the law firm of Hinshaw & Culbertson “It could be that embezzlement occurred at a client’s place of business and the client suffers loss. They will then look for a deep pocket because the person who stole the money has long spent it So they sue the accountant for failure to detect the embezzlement The situations are endless and not always foreseeable But when you get sued, you have to defend yourself ”

Professional liability insurance, in essence, is your safety net. “Anyone who delivers professional services to clients needs professional indemnity insurance This includes the firm, its current and former partners, members and principals, directors and employees,” explains Ken Rand, a senior VP at Marsh, which provides insurance program management.

What can a professional liability policy do for you? “Generally, it provides the insured (CPA firm and its subsidiaries) coverage for any claims based on a negligent act, error or omission in the rendering of profess i o n

Want to reduce your premium costs?

Prepare a thorough insurance submission

Educate insurers on your exposures, explain the trends you ’ re seeing, and communicate regularly, especially about claims and circumstances; don’t give them any surprises, says Lemme

Develop & adhere to a risk management program

“ I n c l u d e r i g o r o u s c l i e n t a c c e p t a n c e a n d c o n t i n u a t i o n policies,” Lemme advises. “Furthermore, don’t allow general partners to go beyond their expertise, and encourage or even mandate the involvement of specialists and consultants when necessary ”

Develop a faultless track record

“ What (juries) care about is CPAs getting it right,” says Parisi “[I]f something looks irregular, it probably is Investigate it, document it, communicate it, and get it right ”

Avoid conflicts of interest

Participating in business deals with clients is often a mistake Advising both parties to a transaction, or helping them resolve a dispute, is also risky

Avoid lawsuits for fees

Lawsuits for fees and countersuits almost always result in CPAs spending far more in attorney fees and in lost billable time than is warranted for the fees owed to them

f Lemme Insurance Brokers and Consultants. Basic policies may include a

, trustee work and financial planning Some also may broadly define professional services as advice given or services performed for others of whatever nature, as long as a portion of the fee inures to the benefit of the insured, says Lemme.

This checklist will help you find the right policy

Exclusions & Limitations

All policies contain exclusions and other limitations “Take extra care in understanding how these provisions affect your coverage, and seek the advice of a qualified insurance broker or legal counsel,” Lemme advises.

Supplementary Benefits

Also check for additional or supplementary benefits such as loss prevention and tax hotlines, subpoena services, and pre-claims legal counsel, which are provided free of charge by some carriers. “Some will provide such services but put restrictive limits on the amount of access to them,” warns Ronald Parisi, CPA/JD, national program director for CAMICO Mutual Insurance Company

Coverage Amount

Deciding how much coverage to buy is tough “The old rule of thumb is one times fees or $100,000 per licensed employee,” says Bill Thompson, president of CPA Mutual RRG “But some state boards have minimum requirements. There are a number of key considerations.”

“Asking, ‘What is the firm’s annual revenue?’ is a good starting point. Policy limits chosen by firms tend to approach their annual revenue,” says Parisi In his experience, as long as the policy limit is sufficient, relative to the net worth that can be legally reached, plaintiffs generally will accept the amount available under the policy “We are not advocates of a ‘buy as much as you can afford’ strategy,” he says The size of a policy limit can unfortunately motivate plaintiffs to exaggerate their damages and make it harder to negotiate a reasonable settlement. “The best size is neither too big nor too small,” he says.

Policy Limits

Also consider the fact that entities such as LLCs and LLPs require certain liability insurance limits, and that the types of services your firm offers can affect those limits For example, will you need a single-limit policy or a split-limit policy, which has a per-claim limit as well as an aggregate limit? Claims from audit services tend to be relatively large, while claims from tax services tend to be smaller and to occur more frequently, says Parisi A higher single-limit policy might work better for a firm specializing in audit services, while a split-limit policy might make more sense for a firm specializing in tax services

Furthermore, if you have one or more high-net-worth clients, or audit clients with significant lines of credit or loans to the business, the amount of damages that may be claimed as a result of an error or omission will affect how high the policy limits should be. Also, certain types of industries and services such as construction, financial services, investments, etc pose a higher risk than others

Carrier Reputation

“You want an insurance carrier that is Rated A or above by AM Best,” says Randy Mrozowicz, executive vice president for Monitor Liability Managers, LLC. Have an idea, too, about the insurer ’s commitment to the accounting market. When the market turns, companies will exit for more profitable lines, says Thompson Furthermore, what’s the company’s claims handling reputation? “Ask a local attorney about the insurance company’s claims processing Are they slow pay, no pay or what?” he asks

Loss Prevention

The loss prevention services the carrier provides are just as important as any other factor, says Parisi. Avoiding a claim can result in significant savings to a firm. Lost billable hours spent in legal proceedings can be substantial, as can damage to a firm’s reputation.

Cost

“The cost of professional liability insurance for a CPA firm can be significant even, perhaps, its largest expense after payroll and rent,” says Lemme.

But while premium matters, it shouldn’t be the main factor in deciding which policy to buy “If a firm is just shopping the market for cheap price quotes, it will end up with a cheap policy However, a cheap policy could end up being more expensive in pre-claims or claims situations because of the carrier disclaiming liabilities or taking inappropriate or detrimental actions,” says Parisi

What’s more, you need to understand what impacts cost “The actual premium cost is difficult to generalize, as it depends on a number of factors such as revenue, professional headcount, geographic footprint, management structure, subsidiaries, areas of practice, industries served, client bankruptcies/insolvencies, commitment to risk/practice management and claims experience over the last 5 to 10 years,” Lemme explains “Another important consideration is insurance market conditions The insurance market is cyclical in nature and there are periods when supply (or insurance capacity) exceeds demand, resulting in competitive market conditions.”

Once you’ve picked a policy, review it on a regular basis at least once a year for large firms, and every other year for smaller firms Make sure you have appropriate limits and coverages for your firm, and that you’re receiving the services you need at the right prices

However well-prepared and well-researched you are, though, bear the law of averages in mind “[J]ust about every CPA will experience at least one claim in his or her career,” says Parisi.

Green This

By Kristine Blenkhorn Rodriguez

f o r bus i n es s

According to the National Recycling Coalition, the amount of waste recycled in the United States has almost doubled over the last 15 years, clocking in at 33 percent today Much of that effort has been spearheaded by our cities and the managers of the buildings in which we work

Professional services firms haven’t exactly been on the leading edge of this trend, but they are catching up. The Chicago Green Office Challenge [chicagogreenofficechallenge.org], which aims t

Chicago offices generate, boasts a heavy concentration of professional services firms in its latest participant list Using a Green Office Scorecard, participants are acknowledged for efforts in up to 50 green strategies

Peter Steinmeyer, an attorney in Epstein Becker & Green P.C.’s Chicago office, talks about his firm’s participation in the Challenge: “We have reduced our electric bill by 15 to 20 percent since joining the Challenge We’ve reduced paper usage and costs by one-third And we spent almost nothing to participate in this program The ROI has been great ”

He cites tasks as simple as unplugging unused computer equipm

h t s e n s o r s “ We a s k people to turn off the lights in conference rooms, bathrooms and copy rooms when they’re not in use. We ask them to use doublesided printing when possible. We purchased a set of plates for the break room No more throwaways It has really been painless and yet is saving us money ”

Priceless Greening: No - cost ways to create an eco -friendly office.

P a p e r

n Purge mailing lists check out go-green com for tips on how to reduce unwanted mail, including removing the name of your business or employees from major mail databases and purging former employees from existing mailing lists

n Add a “ Think Before You Print ” tag to all email signatures

n Implement a double - sided or “duplex” print policy

n Use single - spaced type and adjust page margins to the minimum in order to fit as much type as possible on a single page

n Encourage employees to create email files rather than printing S u p p l i e s

n Organize your office supply inventory to avoid redundant ordering Also make it a policy to reissue unused supplies

n Ask employees to bring in their own mugs, plates and cutlery; do away with the disposable stuff

n Opt for green office supplies, such as refillable pens and pencils and dual-powered calculators (solar and battery), provided by local and/or green suppliers

R e c y c l i n g

n If not already in place, work with the office of the building to contract with a recycling company.

n Issue employees with recycling bins for paper, cans, glass bottles, plastics, etc , or set up a recycling area in the office Make sure staff have easy access to this area

E n e r g y

n Reduce the number of appliances in your offices no minirefrigerators or coffee -makers at individual desks

n Consolidate spaces, such as storage rooms, to reduce the number of areas requiring maintenance

n Switch off and/or unplug all equipment when not in use

n Switch off lights whenever leaving a space that is not in use

n Maximize on natural light sources change desk orientations to better access windows, etc

n Don’t heat/cool corridors, storage rooms and unused spaces

n Turn the temp up/down one or two degrees in the winter/summer.

n Opt for CFL light bulbs

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Establishing a recycling program isn’t hard, says Mike Mitchell, executive director of the Illinois Recycling Association [illinoisrecycles org] “About 75 percent of the buildings in Chicago’s Loop are recycling If this was rocket science, if they weren’t saving money, if it was expensive, they wouldn’t be doing it ”

Paul Forrester, partner and chair of Mayer Brown LLP’s Chicago office Green Committee, says his firm “went for the quick, relatively painless actions that would have immediate real impact,” including buying paper with greater recycled content, duplex (two-sided) printing, replacing Styrofoam cups with china mugs, and using tap water over bottled water With approximately 1,000 people in two different Chicago office locations, these small steps had a significant impact on Mayer Brown’s waste stream and costs

“Most firms think about paper but forget about things like bottled water and soda cans,” says Mitchell “If you average two drink c o n t a i n e r s p e r p e r s o n p e r d a y a n d y o u ’ r e n o t r e c y c l i n g , t h i n k about how much extra you’re paying for waste ” In an office the size of Mayer Brown’s, a firm would generate 40,000 drink containers per month

While greening was the “right thing to do,” client demand also spurred the effort, says Forrester “When we’ve filled out RFPs over the past year, our large institutional clients have begun to ask about our carbon footprint They want to know how green we are ”

For those businesses whose buildings may not have a recycling program in place, the Illinois Recycling Association will be rolling o u t a w e b - b a s e d w o r k p l a c e r e c y c l i n g k i t t h i s s u m m e r I t w i l l include a service provider list and instructions for starting an office recycling program

Mitchell breaks it down into four simple steps:

1. Understand how garbage “works.”

Find out how your building’s garbage is collected and what recycling opportunities already exist

2. Do a waste audit.

“You can pay a company to do a really thorough job and give you a binder with a fancy printed report, but you can also do this on your own,” says Mitchell “It’s really just figuring out where your waste is generated and what it consists of is it paper, water bottles, etc ?”

3. Target your materials.

“ I n a n o f f i c e s e t t i n g , t h e m o s t v a l u a b l e r e s o u rc e i s u s u a l l y paper,” says Mitchell “So put your recycling bins in the most convenient spots Mark them clearly Educate people beforehand via a memo or brief meeting. If you put a recycling bin back by the loading dock and they have to go down two floors to get to it, forget it.”

4. Appoint a coordinator.

You need someone to communicate regularly on the program’s progress and successes.

Upper management is extremely important to the greening effort

“Even if the boss has nothing to do with running the program, the boss must set the example and tone for everyone in the office if you want people to take it seriously,” says Chelsea Gleis, owner of Office Greeners LLC. “And unless your cleaning/maintenance crew is familiar with your recycling program, you may not achieve the savings you intended.“ Those savings, says Gleis, can be upwards of 25 percent in terms of carting or waste-hauling costs alone

“If you take it from the angle of efficiencies and saving money, no one argues,” says Gleis “Even the least green employee can’t argue with saving money ”

The National Recycling Association posits that if offices were to push recycling rates even 10-percent higher for things like aluminum and steel cans, plastic PET and glass containers, newsprint and corrugated packaging, the amount of energy saved would:

n Heat 1 5 million American homes in a moderate climate for one year.

n Provide electricity to 1 8 million homes for one year

n Save Americans about $957 million in costs for barrels of crude oil not purchased

The days of convincing management to go green should be history, says Epstein “When I was a brand new lawyer in 1990, the firm I worked for introduced a rudimentary recycling program The partners joked about having to go to ‘trash training.’ Please. Those days are over We’re all more enlightened Management gets it. You just have to show them it will save money instead of costing them ”

Business Master

MB A ?

By Christine Bockelman

The CPA is still the undisputed king of accounting certifications, but there’s a sea of other three-letter designations that can supplement it Of these, it’s one of the more high-profile, the MBA, that also tends to be the most contentious.

A Masters of Business Administration, a degree held by many of the country’s best and brightest business leaders, would seem to go hand-in-hand with a CPA “I think an MBA prepares a person for the dynamic changes they’re going to have in their careers as the business world, and the whole world, changes,” says Joseph Ament, professor of accounting and taxation at The Walter E. Heller College of Business Administration at Roosevelt University in Chicago.

Unfortunately, it’s not all black and white For starters, earning an MBA is a huge investment in time and money up to $90,000 and two years off work. And then there’s the whole question of public versus private sectors

“In the public accounting model, an MBA isn’t as critical as it is in some other industries,” explains Warren Stippich, partner and Chicago practice leader of Business Advisory Services at Grant Thornton “When I’m going through the criteria of whether or not to promote someone, I measure them on client service, technical ability, business development skills and the ability to work in a team environment; not if they have an MBA,” says Stippich “An MBA can help round out someone’s base of knowledge, but I will not promote John over Suzie because he has an MBA In some public accounting firm service lines, the MBA has less impact ” Stippich doesn’t necessarily carry the unanimous vote on this point, however

“The combination of being a CPA and an MBA, from my perspective, is optimal,” says Dorri McWhorter, CPA, a partner in the Chicago office of Crowe Horwath Working in the public accounting sector, “I think it gives me such a greater depth of understanding from a business perspective, and it allows me to take a more comprehensive approach to solving problems Business models are changing so quickly and if accountants don’t really understand those models or concepts, we risk becoming irrelevant to some degree ”

“I don’t think an MBA is a required criteria for advancement in public accounting, however I do see where it could provide some benefits,” says Steve Ferrara, partner and assurance services business line leader at BDO “A public accounting firm is still a business It needs to be run by people who can help it grow, and an MBA will help give them a broader view of business.

“I recently met with our senior managers to discuss the skills needed to make it to the partner level,” he adds “One is business development skills, including finding new clients, and the second is business advisory skills when working with clients. An MBA would help our team broaden their focus in developing such skills ”

In the end, though, the value of an MBA is up to the individual to weigh against investments of time and money Although, even here, recent history may be throwing MBA seekers a bone

The story begins in 2006, when 47-year-old Lori Singleton-Clarke filed her 2005 return

According to the Wall Street Journal, Singleton-Clarke claimed about $50,000 of income, several smaller deductions, and $14,787 of expenses for an MBA from the University of Phoenix Typically, complex tax laws discourage students from taking the deduction. The IRS challenged her on the education deduction, but she refused to back down, believing that it was allowed according to IRS Publication 970. She sat before Judge Stanley Goldberg in late 2008, and almost one year later, in December 2009, was victorious

While the ruling doesn’t mean everyone will be able to deduct their degrees, experts say it might just put the tax-deductible MBA within the realm of possibility

Class of 2010 , the Illinois CPA Society applauds your magnificent achievement.

Hailey D. Adams

Ryan M. Adams

Jason Aguiar

Emmanuel Akwafo

Aiden Allen

Jennifer Alma

Courtney Ambrosch

Jason F. Ananias

Brett Anderson

Danielle Anetsberger

Ben Antao

Jeremy Archibald

Stephen H. Arendt

Dana Armon

Azam A. Azeem

Afthab Badimoole

Susannah Baney

Lazeric Banks

Tombari Bariker

George Barnett

Matthew J. Barr

Michelle Bartosik

Kathryn P. Batkiewicz

Amber Beach

Ryan M. Beckmann

Michael C. Beesley

Megan C. Betancourt

Shruti Bhat

Asta Bickauskaite

Gina A. Biel

Denise Biggs

Thomas Bishop

Allison N. Blackburn

Lauren N. Blaies

Tracy Blasiak

Amber Blatt

Belinda B. Boddy

Cesar Bonilla

Paulina Boonman

Lonnie D. Branch

Kierstin D. Brandt

Alexander S. Braser

Jared H. Breslaw

Ryan Brickl

Jennifer L. Briner

Mustansir Broachwala

Andrea M. Brown

David Browne

Laura E. Brumlove

Julia Buhnerkempe

Diana Burbick

Gregory T. Burke

Devin Buswell

Jessica L. Buterbaugh

Andrea Cantrell

Erminio Caporale

Brendan Carey

Nathan A. Catt

Yasemin M. Celebi-Ener

Pang-Yu Chen

Wei Chen

Wei-Ying Chen

Xiaoxi Chen

Michelle K. Chin

Steven M. Chin

Brandi Cho

You Jin Cho

Daniel Christensen

Tyler Christianson

An-shiuan Chuang

Yin Chen Chuang

Christine Cisneros

Megan Clare

Kevin E. Clark

Ryan A. Clark

Jennifer K. Clement

Kendrick C. Coleman

Adam T. Corbin

Adam M. Corbitt

Amanda. Craig

Jaclyn R. Creek

Mark A. Cynova

Matthew Daggett

Brittany R. D'Arcy

Jennifer L. Davidson

Joshua R. Davis

Tim Deets

Dawn A. Degand

Bethany N. Deien

Andrew P. Deising

Brian Demijan

Manuel A. DeMoya

Luke M. Derheimer

Marti Desjarlais

Nam R. Devadas

Joseph Diamond

Dorina Diaz

Rodolfo Diaz

Devon L. Dickson

Therese A. Djatche

Madeline F. Dort

Samantha L. Drake

Nick Draus

Lisa V. Drew

Stacie M. Droege

Stephen J. Drolet

Natalia M. Dudzinska

Dariusz Dziurdzik

Sarah C. Earnhart

Karl M. Erickson

Amber Faber

Brittany Falconio

Sara R. Falk

David J. Farber

Ellen Farrell

Megan E. Farris

Andrew S. Fedele

Steve Fekety

Jenna Feldhake

Gina Fieramosca

Ashley M. Francis

Jessica M. Frechette

Shannon Fritz

Rachel Froemel

Phillip M. Frohn

William R. Frost

Jennifer Fuerst

Eric D. German

Jessica Gibbens

Kelli J. Gibson

Jessica Gildens

Jeff Glickman

Joanna Golebiewska

Laura A. Golightly

Andrew Gorup

Pattie Grain

David Granstrom

Craig Green

Kevin Gregori

Anthony John Griglione

Bradley Grimes

Richard Gross

Anna Gueorguieva

Brandon Guyette

Sarisa Hall

Trista Hanauer

Kyle Hangartner

Bailey Jo Hasemeyer

Laura Hayes

Yoon HeeJin

Kyle Hempen

Lauren Hendrickson

Charmaine Henning

Carly Herst

Denise C. Hodges

Sarah M. Hoedebecke

Wade T. Hoey

Danielle Hoffman

Rachel Hofmann

Kaitlin A. Holcomb

Richard J. Hollowood

Jacoby Holtz

Jennifer L. Hosmon

Adam J. Hruskocy

Chih - Ming Hsiang

Tongjie Hu

Xuan Hu

Jianjia Huang

Qing Tian Hubschmitt

Elizabeth Hudon

Elizabeth Hudson

Marlow D. Hudson

Olivia S. Hugh

Sean E. Hughes

Kuo-Wei Hung

Brian Hwang

Heriberto Ibarra

Alexander Igolnikov

Whitney W. Innes

Ryan C. Jackson

Andrew N. Jadin

Jennifer A. Janick

Katherine Jaronczyk

Kenneth S. Jenke

Yan Jin

Bryan Johnson

Timothy C. Johnson

Wesley R. Johnson

Jacob T. Johnston

Joy M. Jones

Samuel T. Jones

Ashley L. Jozsa

Christopher Kadonsky

Christopher Kalogcropoulos

Andrew Kamphuis

Katie Kamykowski

Rajashree Kanungo

Kevin F. Karam

Kevin Karpiel

Adam E. Keene

Katie A. Kelch

Christine E. Kelinske

Nikki C. Kemp

Theresa Kengott

Tim C. Kenwick

Maysara Kereytova

Sean Kerschen

Allison L. Kief

Ji Hye Kim

Kevan J. Kim

Young Suk Kim

Kara M. King

Kevin J. King

Elizabeth Kitchin

Heather Knorr

Hina Kochhar

Lisa J. Koengeter

Claire A. Koerner

Corie A. Koesler

Danielle C. Kole

Jarrad Koon

David Kosmowski

Manali Kothari

Usman A. Kothawala

Joseph D. Kott

Matthew D. Kowalczyk

Elizabeth Kraft

Bethany Kramer

Carly R. Krizmanich

Kyle M. Kruke

Paula S. Kuester-Coy

Supriya S. Kumar

Michelle Kwan

Jessie S. Lai

Matthew Lampugnano

Nora K. Lander

Whitney F. Lang

Michael B. Lange

Matthew P. Larson

Steven Laube

Boban Lazarevskiy

Jessica Q Lee

Joseph Lee

Ham Li

Ling Li

Shan Liang

Soo Jin Lim

Weichun Lin

Andrew Litwin

Chang Liu

Innokentiy Loos

Erin P. Lowenthal

Jessica Lubczynski

Mark Lyznicki

Yong S. Mai

Krystle M. Malic

Olga Malkiman

Diana C. Mammoser

Sarah A. Manijak

Adam R. Manning

David R. Mapes

Melanie A. Maple

Tara Mareth

Jeffrey T. Marinier

Kristina Marinkovich

Jennifer Mark

Shanin M. Marshall

Lisa Martin

Leonel Martinez

Kateryna Marynenko

Ryan L. Masterson

Caitlin McCabe

Matt McDonald

Michael T. McElyea

Beatriz Mendoza

Jennifer C. Meyer

Brandon L. Miller

Christopher R. Miller

Joseph M. Park Miller

Susana Millinovich

Laurence R. Milstein

Brittany Minkler

Samantha Mirza

Renaldo Misrasi

Jennifer Mokry

Linda J. Montee

Monica Moore

Sean Morrison

Alison J. Moss

Sachi An-Thu Moy

Ryan M. Mroz

Claire Mueller

Sean P. Mulchrone

Anne F. Munaretto

Jerry Munk

Kelsey Myers

Zachary L. Myers

Paul D. Natalino

Jennifer A. Neff

Michael J. Nejedly

Jeremy E. Nelson

Stephanie Nelson

Bradley S. Nemeth

Dominique T. Nettles

Andrew Nicholas Renscher Nicholas

Debi Nicoue

Rumiana Nihtianova

Matthew P. Noffke

Patricia Norek

Michael A. Novack

Tolkynbek Nurgaliyev

Beth N. Olson

Kenneth M. Orth

Andrew Oster

Tara Osterhoff

Mark H. Paik

Thomas Parker

Danicka Parks

Arjun Patel

Reenie Patel

Tulsi A. Patel

Meghan E. Pearl

Amanda Peckinpaugh

Akushla Peduruhevage

Carissa Pekin

Martha V. Perez

Lauren M. Peterson

Michelle D. Petty

Erica Piotrowski

Michael W. Plahm

David Pociask

Kevin A. Pojman

Kate Polak

Sadiq Poonawala

Elizabeth A. Postlewait

Amy N. Price

Michael Prieto

Stephanie Proffitt

Kyle K. Putzstuck

Lucas Raab

Imanuel Rabrich

Robin Ragsdale

Jason Rahn

Ali M. Rampurawala

Cameron V. Randle

Mary Rathert

Joseph A. Raupp

Michael Rayfield

Adam Rebidas

Amanda N. Reed

Matthew Reed

Paul Reed

Ryan Reed

Lindsay Regan

Thomas A. Reynolds

Jamie Richards

Robert M. Ritchie

David A. Robb

Lanita C. Robinson

Ryan A. Rogina

Joseph M. Rossi

Melody Dawn Rowe

Michelle C. Rusin

Jonathan Ruswak

Brad S. Rutenschroer

David Rybak

Elnara Safronova

Eddie Salcedo

Patrick Saliba

Benjamin Sanchez

Shaely M. Sands

Craig M. Sanford

Amelia M. Scales

John M. Schaffner

Ryan R. Schleich

Amelia Schmidt

Kyle Schmitz

Janelle Schoon

Brian Schreiber

Samantha E. Schreiner

Calvin Schultz

Kelsey R. Schumacher

Adam M. Searles

Tim Seong

Jai P. Shah

Puja S. Shah

Logan M. Shalett

Danielle Sharp

Kayla E. Sharpe

Muneer Shehadi

Nadia Sheikh

Yang Sheng

Krunal S. Sheth

Victor Shevlyagin

Alex J. Shumate

Caitlin G. Siedlecki

Julia Siegfriedt-Wilson

He Siyao

Alison A. Skaife

Matthew R. Slama

Amela Smajkan

Ryan A.Smith

Tyler H. Smith

Samantha Smolin

Bryce A. Soer

Anthony Solano

Kelly Solomon

Cindy Song

Florence Soyinka

Laura Speck

Matthew A. Speicher

Holly Spence

Marcin J. Spik

Calvin Stauffer

Ronald J. Steele

Emily D. Sterling

Christina M. Sterzel

Susan M. Stoever

Justin Stryker

Chelsea Sullivan

John S. Sullivan

Roman Svir

David Sweet

Yi-Chun Tang

Bryan P. Taylor

Tam M. Thai

Daniel S. Theisinger

Kyle A. Tichy

James M. Tolles

Taylor Troemel

Rebecca Trudeau

Joe M. Tulig

Molly E. Twigg

Jillian Urbelis

Lisa A. Vahling

Christine M. Valentino

Julie Valentyn

Joan VanderLaan

Jeremy Varel

Nicole Vari

Sailesh Venkatraman

Alissa L. Ventrelli

Debbie Wallace

Alison L. Walton

Ching-Hsien Wang

Yan Wang

Yan Lin Wang

Aaron D. Weiman

Kristine A. Weiss

Andrew J. Weissenburger

Byron R. Wendte

Jacqueline C. Wessel

Elizabeth L. White

Jeff D. White

Brian J. Whiting

Clarissa D. Wilkerson

Meghan Wilkosz

Jessica L. Wilson

Nichjira Witayanonaketavee

Krissy L. Wolfe

Kortney M. Wollert

Allyson Wolsfeld

Pin-Chu Wu

Ruey Wu

Ruoxi Xiong

Anqi Yan

Sisi Yi

Jeanna Yoon

Jennifer C. Young

Kaci Young

Ronnie Zakhem

Walid D. Zeidat

Jia Zeng

Kevin Zhang

Ruojin Zhang

Tingting Zhang

Huan Zhao

Puyu Zhu

Amanda C. Zukoski

Prof ession Pulse of t he

The pr esent, futur e and global outlook for today’s CPAs.

By Derrick Lilly

In December 2009 the Illinois CPA Society (ICPAS) Strategic Planning Committee a subcommittee of the ICPAS Board of Directors launched an initiative to identify and explore the major trends and challenges facing CPAs and their profession. Combining their observations and experiences with those of other ICPAS committees, as well as task forces, chapters, member forum groups and the ICPAS LinkedIn community, the Committee gained multifaceted insight into what is influencing and concerning today’s CPAs.

The truth is, the profession is facing a future of change and challenge. And let’s be honest, it’s downright unnerving for some. But the best way to overcome or at least alleviate the uneasiness and uncertainty is to be watchful and plan strategically. During his December 2009 address to fellow board mem-

rightly so The fallout from failed attempts to take on excessive credit and financial market risk has plunged our economy into depths from which it’s taking extraordinary efforts to surface The ensuing volatility and growing uncertainty surrounding business and consumer investing and spending has affected nearly every aspect of our economy and lives As a nation, we’ve been trying to recover from a recession that seemingly nobody expected or was prepared for Even accounting, which is often labeled “recession-proof,” has felt the pain

“ M o s t C PA f i r m s a r e b u s i n e s s - t o - b u s i n e s s s e r v i c e p r o v i d e r s , ” s a y s C h a r l i e K u y k , C PA / A B V, C F E , C r FA , C VA , c o - c h a i r o f t h e Strategic Planning Committee and a director at Crowe Horwath LLP in Chicago “In this recession there are fewer business transactions, and thus, reduced need for accounting assistance ”

“CPAs at all levels are experiencing layoffs, pay cuts and underemployment,” adds Annette M O’Connor, CPA, co-chair of the Strategic Planning Committee and director of corporate financial planning & analysis at RR Donnelley & Sons Company in Chicago

Financial results reported by Deloitte, Ernst & Young, KPMG LLP and PricewaterhouseCoopers, aka the Big Four, reflect some of the struggles the accounting industry is facing Citing tough external conditions, slow global economic growth, cost-conscious clients, and sluggish merger and acquisition activity, the Big Four saw their combined revenues for a difficult 2009 fall nearly 5 percent After years of continuous revenue growth, even a slight decline is a bit of a shock to the system and a real gauge of the economy.

While the Big Four ’s cumulative decline isn’t necessarily overwhelming compared to declines in other segments of the financial industry, if the largest accounting firms in the world are showing signs of weakness you can bet their small and mid-sized counterparts are feeling the pressure as well.

M a n y o f o u r t r o u b l e s s t e m f r o m t h e f r o z e n c r e d i t m a r k e t s brought on by the collapse of Bear Stearns and Lehman Brothers. Wi t h t h e s e m a r k e t s a s y e t u n t h a w e d , t h e a b i l i t i e s o f e v e n a b l e b u s i n e s s e s t o f i n a n c e t h e i r o p e r a t i o n s a n d f u t u r e i n v e s t m e n t s remain severely crimped. As a result, many organizations continue to weigh the options of additional service and job cuts all at a time when our economy seems stuck on a merry-go-round of compounding layoffs and budget cuts As we’ve witnessed in one form or another, layoffs = less spending = less demand = budget cuts, bankruptcies and mergers = more layoffs This cycle ultimately means more fiscal challenges for businesses and consumers to overcome

Thomson Reuters’ review of global investment banking activity during 2009 revealed global M&As totaled a mere $1 97 trillion, a 32-percent drop from 2008 ($2 89 trillion) and down a significant 53 percent from the record high set in 2007 ($4 17 trillion) Hopefully a sign of brighter days ahead, the review also showed an encouraging 32-percent increase in M&A activity during the fourth quarter of 2009, which was the biggest quarter for private equity-backed M&As in 18 months, and the biggest quarter for global IPOs in two years Consequently, Thomson Reuters sees total 2010 deal activity improving, which could save or even bring back jobs, as long as the capital markets continue to recover and business confidence makes a lasting return

There may be another silver lining hidden among the lingering whispers of gloom and doom Despite shedding 10,800 private-sec-

tor accountant positions between December 2008 and December 2009, the Bureau of Labor Statistics (BLS) is anticipating increased demand for accountants in the coming years The BLS estimates positions will increase 21.7 percent, adding some 498,000 accounting jobs, to reach a total of 1 57 million employees by 2018

Another boon may come in the form of the US government “About 10 years ago I jokingly said to a colleague, ‘We’re all going to end up working for the government,’” says Mary Lou Pier, CPA, president of Chicago-based Pier & Associates Ltd And, in fact, the excessive credit and market risks and rising cases of financial fraud have incited waves of renewed oversights and regulations that may offer CPAs employment opportunities in new and expanded government agencies Lending support to the BLS estimates, jobs are expected to follow in the private and public sectors, as organizations realize the importance of enhancing compliance efforts

“There’s never been a more dynamic time in our industry,” says Jones. “The only one who can stand between all the regulations and the practical application of them is a CPA ” “

scandal, as well as Foreign Corrupt Practices Act (FCPA) violations, have been a wake-up call,” adds Kuyk, who foresees opportunities increasing for internal auditors, risk managers and fraud investigation professionals

Looking a little deeper, the CPA’s role and competencies are e x

changes The ICPAS Board foresees CPAs becoming more involved in certain areas of tax, fraud prevention and detection, risk management, cost control, financial forecasting, loan brokering and

i e s l i k e X B R L (eXtensible Business Reporting Language) and IFRS (International Financial Reporting Standards) could open doors to new opportunities and entirely new CPA roles And while the CPA credential remains the gold standard, exploring additional niche certifications may help CPAs to stand out from their peers.

Employment aside, another near-term concern persists, namely rising taxes An unfortunate outcome of the government’s string of bailout and stimulus efforts and recession-hit tax revenues is a skyrocketing national debt and budget deficit Now, instead of focusing purely on rejuvenating business operations, the ICPAS Board warns that businesses will need to watch out for tax increases and tax credit cuts at the state and federal levels.

“We ran up a lot of debt and that can’t be solved with more debt; you cannot pay off debt with more debt,” Jones stresses “The government is going to have to raise taxes and they’re going to have to tax things that traditionally have been untaxed The government has no choice; it needs to get more tax revenue ”

“As a business leader you have to anticipate that taxes are going to rise, and you have to make sure you have more contingency to cover that eventuality,” says Ed Stassen, CPA/MBA, ICPAS Board member and CFO of Chicago-based Recycled Paper Greetings Inc Unfortunately, he says, “It’s really tough to plan for it because you just don’t know the magnitude until it shows up on the radar screen

“What I’ve already observed is a lot of state agencies being more a g g r e s s i v e i n c o l l

more aggressive attempts to make sure they’re getting all of the taxes they’re owed,” says Stassen

For practitioners, rising taxes and business expenses coupled with ongoing recessionary impacts will likely push clients’ feesensitivity beyond its already heightened level.

“The pressure on fees is huge, and unfortunately the accounting service a client thinks will decrease next year just isn’t going to happen,” says Pier What’s more, “There’s a standards overload out there, and clients don’t want to deal with it anymore. They’re having hard times with their banks, and anything relating to their numbers when their numbers are bad they don’t want to deal with again,” she explains “A CPA is just another expense ”

As such, the fear of less demand and fewer opportunities for CPAs in the future raises the question, ”Will need outweigh costs?” The old adage claims that a picture is worth a thousand words But when someone outside of the industry or corporate world pictures a CPA, can they think of a thousand needs for one?

Countless consumers individuals and businesspeople alike still have no idea what “CPA” stands for, let alone what services one can provide And if consumers don’t recognize a CPA’s importance, then business opportunities will be cut short

“It’s important that people understand that we are trusted advis o r s , a n d y o u a b s o l u t e l y h a v e t o p r o v e y o u r v a l u e , ” s a y s P i e r. “ E v e n i f i t i s n ’t a s c l e a r- c u t a s , ‘ W h a t I d i d f o r y o u s a v e d y o u $6,000,’ you have to explain your work ”

Volunteerism Boosts Careers

Shine a positive light on your career and your profession by giving something back These volunteer opportunities offered through CPAs for the Public Interest, the community service arm of the Illinois CPA Society, give you the opportunity to use your financial expertise to help those in need, and educate the public on the services the CPA profession provides:

n College Financial Aid Application Assistance – Help Chicago Public School students complete their FAFSA forms

n CPA Board Connection – Serve on the board of directors of a not-for-profit organization

n Habitat for Humanity: Building Financial Foundations –Provide financial management guidance to Habitat for Humanity homeowner families

n IRS Disaster Assistance / Emergency Relief – Help disaster victims understand the services and benefits available to them

n Junior Achievement: Dollars and Sense for Kids – Teach money management skills to elementary and middle schoolaged children

n Military Service Tax Preparation – Provide free tax preparation services for members of the military in Illinois

n Pro -bono Consulting Opportunities – Support small and emerging not-for-profits as they strengthen their financial management systems

n Tax Preparer for Low -income Families – Volunteer to help low -income individuals and families at tax time

n Workshop Presenters – Present a financial workshop for small not-for-profit boards and staff and/or the general public

To get involved contact Jill Wiles, com m unity service m anager, at 8 0 0 9 9 3 0 4 0 7 ext 2 7 7 or wilesj@icpas org A lternatively, visit us online at icpas org/volunteer

THE ROAD AHEAD

Taking a forward look at the concept of the CPA image, O’Connor contends that, “The CPA brand needs a serious makeover for both the public and students considering a career in the profession. The CPA image all work, no fun, no life needs to be updated to reflect the rewards and opportunities of the profession ”

Without a steady flow of new students pursuing those opportun i t i

widen With Baby Boomer retirement on the horizon, we can’t afford to have the influx of new talent stymied.

The Strategic Planning Committee predicts that the first wave of Baby Boomers will begin stepping down within the next two years, and as they do, the gaps in ownership, executive and management r

quently, for organizations with an aging staff, succession planning, mentoring programs, leadership training and recruiting strategies will require a more focused approach

“The real key to succession planning that I see firms consistently make a mistake on is planning early. A 5-year ‘route out’ i s a n a b s o l u t e m u s t f o r o w n e r s o r u p p e r m a n a g e m e n t a t t h a t stage,” says Rob Cameron, CPA, ICPAS Board vice chair and principal of Cameron Smith & Company in Springfield, Ill.

“Many US companies and organizations have not trained, prepared, or secured sufficient numbers of mid-level managers to fill the executive ranks nationally. A talent pool shortage among those with executive quality potential significantly affects the level of competitiveness of US industries and the quality of service,” warns the American Society of Association Executives and The Center for Association Leadership in Designing Your Future: Key Trends, Challenges, and Choices Facing Association and Nonprofit Leaders.

“Owners need to come down and do more,” says Cameron “I spend huge amounts of time showing my younger staff how 150 different clients may only create three or four different kinds of work. I show them the patterns and walk them through the thought process ”

What Keeps You Up at Night?

We asked our committees, LinkedIn community and Young Professionals Group, “ What four trends or issues do you see on the horizon impacting the CPA community?” Here’s what they had to say:

12 Trends to Watch

Using the American Society of Association Executives and The Center for Association Leadership’s Designing Your Future: Key Trends, C hallenges, and C hoices Facing A ssociation and Nonprofit Leaders as its guide, the ICPAS Board of Directors identified 12 trends they believe will have the biggest impact on CPAs and the CPA profession going forward:

1 Growing financial market risks and uncertainty, which create turbulence and impede economic recovery

2 Evolution of decentralized and highly networked companies that utilize freelance and project-based employees Also, growing demand for transparency and accountability

3 Baby Boomer retirement, leading to talent shortages Plus, financial pressures forcing many into post-retirement employment or unretirement

4 The Internet transforming government, governance and business communications and accountability

5 The rising economic strength of China and India, which represent an increasing share of global GDP, and may overtake the United States in coming years

6 Generation Y influencing change in the workplace and society

Similarly, Pier spends “a lot of time trying to analyze the way I work and define those checkpoints and quality measures to pass on to the person next in line. The grooming of young people to come in and buy you out is just a portion of succession planning.”

Added to the issue of hiring and retention is the issue of retirement and, specifically, its changing definition Factors like longer life expectancies, higher living expenses, and declines in retirement savings are forcing many professionals to postpone their retirement plans, opt for phased retirements and even seek part-time work over traditional retirement. Essentially, that translates into fewer growth opportunities for younger generations impatient for promotion The risk is that talented young professionals will simply move from one company to another in order to achieve their goals.

In response, Dan Rahill, CPA, ICPAS Board secretary, explains that, “It’s important to build a culture within your organization that p r o m o t e s p r o f e s s i o n a l d e v e l o p m e n t , t r a n s p a r e n c y, r e c o g n i t i o n , c a m a r a d e r i e a n d g o o d t e a m m o r a l e . C r e a t i n g a n e n v i r o n m e n t where employees like and respect each other and their managers, and where they want to be a part of the organization is critical ” Rahill is KPMG LLP’s partner-in-charge, tax for the Chicago metro business unit, and a recruiter and advisory board member at Notre Dame and the University of Illinois

F o r n o w, t h e B u r e a u o f L a b o r S t a t i s t i c s p r e d i c t s t h a t B a b y Boomers will continue to stick around, but their overall numbers in the workforce will steadily decline The number of workers aged 55 and over is projected to make up only one-quarter of the labor force in 2018, whereas Generation Y workers will make up nearly 50 percent Professionals prolonging their careers will need to adapt to the management style and workplace attitudes of their younger colleagues, who will soon make up the vast majority.

In fact, the way business is conducted is likely to change drastically as Gen X and Y rise in influence The challenge is to calm tensions and harness each generation’s unique abilities and qualities.

“You have to be nimble and you have to think outside the box,” says Cameron

“Sometimes there’s conflict because the older professional doesn’t want to give, but open-minded people who are seeking a common goal can have a great meeting of the minds; both parties can coexist very well,” says Jones “ H o w w e m e e t t h e g o a l s m a y b e d r a m a t i c a l l y d i f f e r e n t , b u t t h e m e t h o d t o g e t t o t h e g o a l s i s r e a l l y s e c o n d a r y ”

They are “digital-natives,” civically engaged, and more politically and socially tolerant than their elders

7 The widening generation gap between employees, which is creating tensions

8 The increasing popularity of online versus classroom education

9 Population diversity (minorities make up one -third of the US population), which affects political and economic outlooks

10 Rising US personal and federal debt, which impacts the US’ overall financial stability

11 Deepening US outsourcing, which raises concerns over employ-ment opportunities, cost control and competitiveness

12 US loss of political and financial influence internationally due to currency weakness, financial market turbulence and adverse reactions to foreign policy

Drawing on next-generation influences, companies are evolving their strategies to capitalize on new technologies, and therefore keep their competitive edge. “You either adapt to these changes or face an eroding client base and high employee turnover, or both at least over the long-haul,” says Kuyk.

As a result, accountants, CFOs and other finance professionals are being called upon to analyze and consult on IT spending and investments, therefore finding the most flexible, cost-effective and profitable solutions

“You definitely need to understand technology The exceptional CFO or CPA is one that has the vision of how this expenditure can support the initiative to move a business forward,” says Jones

Gartner Financial Executives International’s 2009 Technology Issues for Financial Executives Survey, reveals that 42 percent of IT organizations report to the CFO, and that statistic is expected to grow.

“A lot of companies have eliminated the COO job and have rolled those responsibilities over,” says Jones. “Now the finance guy is involved with not only finance but operations and technology as well. That’s a pretty big triumvirate of responsibility.”

The evolution of technology in the workplace continues to influe n c e t h e w a y w e c o m p l e t e o u r t a s k s To d a y, t h e r e ’s a g r e a t e r demand for transparency, accountability and seamless delivery of services; we’re seeing blogs, the Internet, mobile devices, virtual networks, data rooms and cloud computing playing greater roles in supporting business transactions and customer service; and social networks are increasingly becoming interwoven into communications with staff, partners, clients, customers and shareholders

“People have raised their expectations,” says Jones “Connectivity is enormous; you can really set yourself apart with it.”

“Everything happens more quickly than it used to because technology has us connected all of the time,” says Stassen. “The speed of decision-making has accelerated because you are operating in a 24/7 environment.”

“The business model is shifting,” Kuyk explains “A small firm can be as competitive as a big firm, and can provide services for less money That’s a window of opportunity for smaller firms to play in a bigger environment You can have a small company in a suburb of Chicago selling products or services to international customers much easier than you ever could before ”

THE WORLD AROUND US

Internet World Stats [internetworldstats.com] reports Internet users in China and India have increased by more than 1,500 percent over the last decade, and China alone now has more users than the United States On that note, it’s no surprise that emerging markets are now taking on higher-value tasks and maturing into formidable players on the global stage

“The coupling of the Internet and global business is a dynamic that is affecting all accountants today You just have to pay attention to it; your competitor is not necessarily the CPA down Madison Street,” says Kuyk. “It could be the chartered accountant in India.”

In its Global Portfolio Strategy report, “The BRICs Nifty 50: The EM & DM Winners,” Goldman Sachs points out that BRIC (Brazil, Russia, India and China) companies are becoming increasingly competitive on cost and on an international scale. This means t h a t U S p r o f e s s i o n a l s e r v i c e s c o m p a n i e s , l i k e a c c o u n t i n g a n d investment firms, are being compelled to offshore and outsource tasks to drive top-line growth

“With a tough economy people are looking for value all of the time Without compromising quality, in order to achieve a lower price point in this economy many firms and companies are looking to outsource,” says Jones

“There is almost no accounting function that isn’t being looked at by international service providers,” says Kuyk. “It’s not just the back-office credit card operation; foreign outsourcing is permeating all levels of business enterprise The outsourcing of jobs is with us today, and will likely continue ”

India’s call centers, for example, known primarily for their comp u t e r a n

e r s e r v i c e a n d t e c h s u p p o r t , a r e evolving into accounting, consulting and tax service providers Investment banks are also increasingly outsourcing parts of their research divisions to India and other emerging markets.

“The market says it wants the best product for the best value. It’s a very easy decision, and competing against that decision is going to be pretty ineffective,” says Cameron “To stay ahead in today’s e c o n o m y y o u h a v e t o b e n i m b l e a n d y o u h a v e t o b e o p e n t o change because the market is much freer to choose the direction it wants to go ”

T h e l o n g - t e r m p e r s p e c t i v e , t h e n , p o i n t s t o e m e rg i n g m a r k e t s taking market share from the United States Based on Goldman Sachs’ estimates, BRIC economies are expected to account for 50

In Touch with Technology

Respondents to Gartner Financial Executives International’s 2009 Technology Issues for Financial Executives Survey say execs should explore these technologies:

n Web - oriented software (37 1 percent)

n XBRL (29 percent)

n Governance Risk and Compliance or GRC (24 8 percent)

n Social Networking (19 5 percent)

n Cloud Computing (16 7 percent)

n Software -as -a- Service or SaaS (15.7 percent)

n Green IT (14 8 percent)

n Service - Oriented Architecture or SOA (13.8 percent)

n Corporate Social Networking (13 3 percent)

n Unified Communications (11.9 percent)

n Carbon Accounting (6 2 percent)

n Enterprise Mashups (6.2 percent)

percent of global GDP by 2050, and the ongoing financial and economic troubles in the United States and other developed markets seems to be accelerating this trend

What’s more, the United States’ global influence and economic contributions continue to be diminished by the dollar ’s volatility, lingering concerns over our financial stability and fears of slipping into a “double-dip” recession. It’s widely believed that a weak dollar bolsters international demand for US products and services, but it also weakens its status as a legitimate reserve currency

Our skyrocketing national debt and budget deficit, for example, is causing uneasiness among major foreign holders of US debt If i n v e s t o r s d e m a n d h i g h e r i n t e r e s t p a y m e n t s a n d r e d u c e o r s t o p future US Treasury purchases, the government's ability to finance its borrowing could be at risk; it could be facing its own personal credit crisis

An international shift away from the US dollar as a preferred currency reserve also could alter the allocation of foreign direct investment in the United States, and change the balance and location of global assets held by corporations, governments and other investors Furthermore, as the countries within BRIC, the European Union and the Middle East grapple for more economic and political influence, the world will become increasingly “multi-polar,” meaning that the US’ preeminence will further diminish Globally, political and economic influences will become more universally intertwined.

“As globalization trends continue, accountants increasingly will be expected to bring international understanding and perspective to their clients,” says Rahill. “We’re seeing it now with many of our global clients, and expect this to increase in the years ahead ”

CPAs therefore will need to become much more focused on being competitive in an international, rather than local, marketplace. Bureau of Labor Statistics researchers emphasize that, “Continued globalization of business will lead to more demand for accounting expertise and services related to international trade and accounting rules and international mergers and acquisitions ” As such, the potential US adoption of IFRS will likely become increasingly significant to US practitioners sooner rather than later

F o r p r o f e s s i o n a l s e d u c a t e d o n t h e m a t t e r a n d u p - t o - d a t e o n international trends, IFRS adoption and a truly global marketplace can present an array of opportunities around the globe “If and when the United States moves toward conversion to IFRS, there clearly will be opportunities for accountants and other professionals with solid IFRS knowledge and experience to bring value to their clients,” says Rahill

The AICPA points out that business and finance globalization h a s l e d t o I F R S a d o p t i o n b y m o r e t h a n 1 2 , 0 0 0 c o m p a n i e s i n approximately 113 countries. And in the next two years, major U S t r a d e p a r t n e r s , C a n a d a , I n d i a , J a p a n a n d M e x i c o w i l l j o i n their ranks

“You’re going to want to translate the financials of your competitors and see what they’re doing,” says Stassen “For that reason, pressure will certainly start to build to understand IFRS standards and to be able to read the financial statements.”

The AICPA predicts that, “Once a critical mass of non-US companies in a certain industry sector begin to report their financial results using IFRS, there will likely be pressure for US issuers to do the same ” The bottom line, according to the AICPA, “is that CPAs need to begin to prepare for the day in the not-so-distant future w h e n t h e S E C c o u l d d e s i g n a t e a

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Successful Northshore CPA Firm seeks practitioner wi planning and growth.

We are a 65 person full service CPA firm that would like to discuss purchasing and/or merging with your firm. We have completed 15 such transactions over the past 30 years. Please contact me at earlh@msco.net to begin building our future together. Thank you, Earl Holtzman

An excellent opportunity for and growth on many levels.

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SEEKING MERGER PARTNER IN MISSOURI OR SOUTHERN ILLINOIS

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BUY OR SELL AN ACCOUNTING OR TAX PRACTICE

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Conner Ash P C a progressive, dynamic and growing firm is seeking a merger with a quality firm that is committed to creating and maintaining Raving Fan service We offer a full range of services including attest services, income and estate tax planning and compliance, accounting and outsourced controllership services, payroll processing, strategic planning and wealth management We would prefer our merger partners to become part of our management team but will certainly consider retirement minded practitioners We consider our employees to be our greatest asset and we value a true work life balance If you are interested in exploring how teaming with Conner Ash may benefit you, your firm and your clients please contact Howard Rosen at 314-317-6500 or hrosen@connerash com

ILLINOIS PRACTICES FOR SALE:

Grayslake CPA Practice gross $491K; Rochelle CPA Practice gross $106K; Peoria Area Tax & Accounting Practice gross $137K; Springfield Area CPA Practice gross $135K For details, call 1-800-397-0249 or visit us at www accountingpracticesales com to inquire about available opportunities and register for free email updates THINKING OF SELLING YOUR PRACTICE?

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ACCOUNTING OPPORTUNITY

Small CPA firm with many high earning clients located in Buffalo Grove looking to bring in a Junior CPA for future partnership

My goal is to possibly retire in approximately 10 years Please respond only if you have an established client base bonnie@fischmancpa com

Mark Your Calendar!

2010 CONFERENCES

Taxation on Real Estate

May 13 –Chicago

Business Valuation Symposium

May 14 –Chicago

Employee Benefits

May 17 –Chicago

Estate & Gift Tax

May 18 –Chicago

Forensic Accounting

June 2 –Chicago

Business Tax

June 10 –Chicago

Business Tax

June 15 –Springfield

Not-for-Profit Complex & Emerging Accounting and A-133 Issues

June 21 –Chicago

Rainmaker Academy Workshop™ v.2.0

Business Development, Branding, Client Communication and Pricing for Profit

July 20, – Chicago

Full-day workshop co-sponsored by the Illinois CPA Society

The Illinois CPA Society

Annual Midwest Accounting & Finance Showcase

August 24-25, 2010

Donald E. Stephens Convention Center, Rosemont IL

Free Access to Exhibitors 16 hours of CPE for $ 280

For the most current information or to register, visit www.icpas.org. Dates and locations are subject to change. All conferences offer CPE Credit; check our website regarding CLE and other specialty credits.

TIME TA L E N T &

Junior Achievement Dollars & Sense for Kids

In the fall of 2009, the Illinois CPA Society (ICPAS) began a partnership with Junior Achievement (JA) to match ICPAS CPA members with JA volunteer opport u n i t i e s i n I l l i n o i s . T h r o u g h t h i s p a r t n e r s h i p , I C PA S member volunteers were invited to lead fun, hands - on activities to teach K-8th grade students in Chicago, Mount Prospect and Carol Stream al l about m oney management, the workings of the economy and the value of an education

This new partnership means that CPA volunteers are able to become professional role models to young students, while teaching and reinforcing vital life skills

Spring 2010 Junior Achievement volunteer opportunities in Chicago and suburban communities are available through May 2010 In the fall of this year, the Society will offer JA volunteer opportunities to communities in both the Chicago area and Central Illinois Interested members are invited to attend a volunteer training session; all activities are presented using JA learning materials.

Thank you to those ICPAS members who shared their time and energy to present Junior Achievement last fall:

Noah Angeletti

Blake Bowler

Ashley Brodarick

Barb Brown

FOR MORE INFO

Contact Jill Wiles, ICPAS community service manager, at wilesj@icpas org or 312 993 0407 ext 277 Or visit us online at icpas org/volunteer to learn about upcoming volunteer opportunities

Serve on a Not-for-Profit Board

Not-for-profit organizations in your community are looking for the skills and expertise that only CPAs can provide to their boards of directors Serving on a board of directors, and lending your financial skills and professional experience, is a valuable way to take an active role in strengthening your community and supporting a cause or organization that is important to you

The CPA Board Connection is an online directory of more than 150 organizations across Illinois that are actively seeking a CPA to join their boards Find the board service opportunity that fits your specific skills, time requirements and areas of interest by accessing the directory at icpas org today Note that previous board experience is not required

Patricia Cannon

Kathy Capodice

Criss Chang

Dyan Dalesandro

James Dore

Gloria Evans -Melton

Maggie Garris

Kenneth Harris

Michael Jaeger

Sue Katano

Ieshia King

Susan Koepke

Amy Langfelder

Dory Mauro

Amanda Maxwell

Mary Catherine McAdams

Janet McLaughlin

Deborah Mitrenga

John Morris

Jacob Mrugacz

Sean Mulchrone

Rebecca Mulligan

Robert Mullins

Matthew Novak

Doug Offerman

Michael Perry

Carla Peterson

Rob Reznick

Jeff Rozovics

Carlos Sanchez

Bill Schmitt

Valerie Schmitt

Ken Singh

Elizabeth Stanier

Reva Steinberg

Mary Stewart

BeiBei Tang

Caroline Walker

Josh Weir

Maribeth White

Judy Wilk

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