Insight Magazine - Summer 2017

IN ACCOUNTING AND FINANCE, IT’S SINK OR SWIM.

In competitive swimming, fractions of a second can make all the difference between first and last place; a single stroke can mean either victory or defeat. So it is in the fast-paced accounting and finance industries where the smallest details can make all the difference. You need highly skilled candidates

who possess mental toughness and personal endurance You need Accounting Principals and Parker + Lynch. Aligning companies who strive for professional excellence with top performers is what we do so you can focus on meeting your clients’ needs. Take the plunge: contact us today!

Among

A peek inside exclusive business

’sCPA

INSIGHTS FROM TODD SHAPIRO, ICPAS PRESIDENT & CEO

{Follow Todd on Twitter @Todd ICPAS}

{Watch Todd’s CEO Video Series on YouTube}

Work-life?

Technology

We’ve all heard the term work-life “balance ” Now there’s also work-life “integration” and work-life “flexibility” But what do all of these terms mean? And, more importantly, how are we supposed to manage a workplace when each term means different things to different people?

As Charlie Brown would say, “Oh, good grief!”

The workplace has changed dramatically over the past 20 years, driven heavily by smaller and faster technologies that have made us more mobile, more nimble, and more available We seamlessly check our emails, make transactions, and remote into our office networks from the devices we hold in the palms of our hands Te c h n o l o g y n o w t e t h e r s u s t o w o r k 2 4 / 7 / 3 6 5 w e c a n w o r k anytime and anywhere

But, what has that done to the culture of the “workplace” and our ability to actually have work-life balance? And when I say worklife balance, I mean a defined time when one is truly disconnected both mentally and physically from one’s job (not counting when you’re asleep) Our constant connectivity doesn’t just affect oneself, it can and does affect the coworkers around us

Now, I openly admit to checking and responding to email almost every night and weekend because that’s when I have free time, but I also proactively tell my employees that there’s no expectation of an immediate response. However, I’m learning that’s not always the case in today’s firms and companies

In some firms, it’s not unusual for a staff person to get an email from a partner on the Friday of a holiday weekend asking them to c o m p l e t e a t a s k b y 5 p m o n S a t u r d a y I s t h a t c o n s i d e r e d work-life integration?

A p a r t n e r o r s e n i o r e x e c u t i v e m a y t a l k o f g o i n g t o a c h i l d ’s sporting event but then takes conference calls at the event Is that work-life flexibility?

On the flipside, staffers may have the option to work anytime, which might mean 7 p m to 2 a m The only way for the manager on the receiving end of their middle-of-the-night emails to disconnect is to literally turn off his or her smartphone.

My point is, technology and our morphing work anytime and anyw h e r e p o l i c i e s h a v e b l u r r e d , a n d m a y b e e v e n e l i m i n a t e d , o u r w o r k p l a c e b o u n d a r i e s t h o s e b e i n g t h e p h y s i c a l o f f i c e a n d “9-to-5” workday, and if you had work to do beyond it, you stayed late or went back into the office on the weekend There was only so much you could do or would do at home, and checking work email wasn’t part of it.

Technology has “freed” us to work anytime and anywhere And yet, staff retention is always identified as a key business challenge.

So, what are we to do? What do young professionals want? As we shot my recent CEO video, we talked with graduating accounting s t u d e n t s f r o m D e P a u l U n i v e r s i t y a b o u t t h e i r e x p e c t a t i o n s f o r w o r k - l i f e “ s o m e t h i n g ” . N o t s u r p r i s i n g l y, t h e i r a n s w e r s w e r e a l l across the board Some anticipate some level of work-life integration; others want jobs where they can truly get away from it all on nights and weekends.

It’s easy to get caught up in trends as we try to attract and retain talent In the end, I think we business leaders need to pause and a s

we truly want to create for our teams. We have the oppor-

“whatever-you-want-to-call-it” help advance the value of the CPA profession?

INSIGHT MAGAZINE

Editorial Offices

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

Publisher/President & CEO Todd Shapiro

Editor Derrick Lilly

Creative Director Gene Levitan

Photography Jay Rubinic, Derrick Lilly, Nancy Cammarata

Circulation John McQuillan

Advertising Michael W Walker | mike@rwwcompany com

ICPAS OFFICERS

Chairperson, Lisa Har tkopf, CPA Ernst & Young LLP

Vice Chairperson, Rosaria Cammarata, CPA , CGMA Mattersight Corporation

Secretary, Geof frey Harlow, CPA Kessler Orlean Silver & Co , PC

Treasurer, Kevin V Wydra, CPA Crowe Horwath LLP

Immediate Past Chairperson, Scott D Stef fens, CPA Grant Thornton LLP

ICPAS BOARD OF DIRECTORS

Michael Bedell, Ph D Northeastern Illinois University

Terry A Bishop, CPA Sikich LLP

Jon S Davis, CPA University of Illinois at Urbana

Jonathan W Hauser, CPA KPMG LLP

Elizabeth S Pittelkow, CPA, CITP, CGMA ArrowStream Inc

Christopher F Beaulieu, CPA, MST CliftonLarsonAllen LLP

Stephen R Ferrara, CPA BDO USA LLP

Anne M Kohler, MBA, CPA, CGMA The Mpower Group

Maria de J Prado, CPA Prado & Renteria CPAs

Andrea K Urban, CPA ThoughtWorks Inc

Brian Blaha, CPA Wipfli LLP

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

Thomas B Murtagh, CPA, JD BKD LLP

Stella Marie Santos, CPA Adelfia LLC

INSIGHT is the magaz ne of the Ill nois CPA Society Statements or ar icles of opinion appearing n INSIGHT are no necessari y the views of the llinois CPA Soc ety The materials and nformation contained with n NSIGHT are offered as information only and not as practice, financ a , accounting, legal or other professional advice Readers are strongly encouraged to consult w th an appropriate professional advisor before acting on he informat on contained in this publication t is INS GHT’s policy no to know ngly accept advertising that d scriminates on the basis of race religion sex age or origin The Illinois CPA Society reserves the right to re ect paid advert sing that does not mee INSIGHT’s qualifications or that may detract from its professiona and ethical standards The I linois 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 he products or services they may provide or

SEEN HEARD

“Great things in business are never done by one person, they’re done by a team of people.” – Steve Jobs

How to Beat the 3 p.m. Slump

Anyone with a sleep-deprived schedule knows it all too well; it’s the 3 p.m. slump where your overworked brain and body finally say, “No more, not today; put that spreadsheet away. ”

For many of us, this means slinking off to the employee lounge to top off our “World’s Best Accountant” mug with some lukewarm liquid energy (you know, coffee or whatever else is caffeinated), but experts say we ’ ve got it all wrong

By studying chronically sleep-deprived students in a controlled experiment, researchers from the University of Georgia found that 10 minutes of walking up and down stairs at a regular pace

is more likely to reenergize your appetite for work than ingesting 50 milligrams of caffeine, or the equivalent of a can of soda

“We found, in both the caffeine and the placebo conditions, that there was not much change in how they felt, but with exercise they did feel more energetic and vigorous,” says Patrick J O'Connor, a professor in the department of kinesiology and co-author of the study which aimed to simulate typical office workday conditions

So there you have it The best way to beat back the 3 p m slump is to schlep up and down the stairs for a bit or maybe just go for a walk outside since it’s summer and all

CFOs Eye Cyberthreats

If anything can unite finance leaders across the country, it’s the need to thwart cybercrime In “Cyber and Data Security in the Middle Market,” a study of companies with annual revenues between $25 million and $500 million, CFO Research found that 21 percent of respondents had their business activities disrupted by hackers in the past two years

While that’s not a particularly startling figure, the fact that it compares to 37 percent who reported having had physical property stolen during that same period puts it in perspective cyberthefts will likely outstrip traditional thefts very soon

Even companies that didn’t suffer an all-out business disruption were impacted by cyber threats over the last two years Sixty percent of respondents reported losing time and resources as a result of managing a security breach; 23 percent lost revenue; 20 percent lost valuable information; 19 percent lost credibility with customers, suppliers, or the public; and 15 percent lost financial assets

As cyberattacks continue to target all levels of organizations, it’s becoming increasingly important for top executives to communicate the gravity and seriousness of a breach to the rest of the company

63%

of consumers believe AI will help solve complex problems that plague modern societies.

[PwC]

Board of Directors

CHAIRPERSON

Lisa Har tkopf

Ernst & Young LLP

VICE CHAIRPERSON

Rosaria Cammarata

Mattersight Corporation

SECRETARY

Geof frey J Harlow

Kessler Orlean Silver & Co , PC

TREASURER

Kevin V Wydra

Crowe Hor wath LLP

IMMEDIATE PAST CHAIRPERSON

Scott D Stef fens

Grant Thornton LLP

DIRECTORS

Christopher F Beaulieu

Clif tonLarsonAllen LLP

Michael D Bedell

Nor theastern Illinois University

Terr y A Bishop Sikich LLP

Brian J Blaha

Wipfli LLP

Jon S Davis

University of Illinois

Stephen R Ferrara

BDO USA , LLP

Jonat han W Hauser

KPMG LLP

Anne M Kohler

The Mpower Group, Inc

Dorri C McWhor ter

YWCA Metropolitan Chicago

Thomas B Mur tagh

BKD, LLP

Elizabet h S Pittelkow

ArrowStream, Inc

Maria de J Prado

Prado & Renteria CPAs

Stella Marie Santos

Adelfia LLC

Andrea K Urban

ThoughtWorks Inc

Chapter Presidents

CENTRAL

Steven S Howard RSM US LLP

CHICAGO METRO

Anna M Harris

CHICAGO SOUTH

Lawrence E Mish

FOX RIVER TRAIL

Kur t L Schneider

Exemplar Accounting and Tax Advisors

FOX VALLEY

Gar y P Steeno

Ayotte Decker LLC

NORTHERN

Jakob J. Thompson

Benning Group LLC

O’HARE

Deborah L. Kur tzke

Grieco Kur tzke & Adelman LLC

Committee Chairs

ACCOUNTING PRINCIPLES

Ryan Brady Grant Thornton LLP

AUDIT & ASSURANCE SERVICES

James R. Javorcic

CBIZ / Mayer Hof fman

McCann P C

AWARDS

Kenton J Klaus

Deloitte Tax LLP

EMPLOYEE BENEFITS

JoAnn E Cassell

Cassell Plan Audits, Inc

ETHICS

Lawrence A . Hor wich Wipfli, LLP

GOVERNMENTAL EXECUTIVE

Christine A . Torres

Crowe Hor wath LLP

GOVERNMENTAL REPORT REVIEW

Stephanie I Blanco

John Kasperek Co Inc CPA

ILLINOIS CPAS FOR POLITICAL ACTION

Floyd D. Perkins

Nixon Peabody

NOMINATING

Scott D Stef fens

Grant Thornton LLP

NOT-FOR -PROFIT

ORGANIZATIONS

Melissa E Struck

Clif tonLarsonAllen LLP

The Illinois CPA Society thanks its volunteer leaders for their tireless service and contributions. Volunteers like you are the foundation of the Society, and without you, we would not be able to achieve our core mission of enhancing the value of the CPA profession.

PEER REVIEW REPORT

ACCEPTANCE

Russell J Wilson Por te Brown LLC

SCHOL ARSHIP SELECTION

Kenton J. Klaus Deloitte Tax LLP

TAX ADVISORY GROUP

Eunice K. Sullivan

S & P Tax Solutions Ltd

TAXATION BUSINESS

Ryan J Vaughan Ernst & Young LLP

TAXATION ESTATE, GIFT & TRUSTS

Paige B. Goepfer t RSM US LLP

TAXATION EXECUTIVE

Jeremy A Dubow

NDH Group Ltd

TAXATION FLOW-THROUGH

ENTITIES

James B Eisenmenger

Mar tin, Hood, Friese & Associates, LLC

TAXATION INDIVIDUAL

Matt hew J Zaba FGMK, LLC

TAXATION INTERNATIONAL

Madhuri Thaker

TAXATION PRACTICE & PROCEDURES

Mark Heroux

Baker Tilly Virchow Krause, LLP

TAXATION STATE & LOCAL

David J Kupiec

Kupiec & Mar tin, LLC

WOMEN’S CONNECTIONS

Mar y E McCormick

WOMEN’S EXECUTIVE

Eileen M Iles

Crowe Hor wath LLP

Conference Planning

Task Force Chairs

ACCOUNTING & AUDITING

Jodi Seelye

Mueller & Company LLP

ADVANCED TOPICS IN FLOWTHROUGH TAXATION

Jef frey D Butler

Kessler, Orlean, Silver & Company, PC

EMPLOYEE BENEFITS - SPRING

Rose Ann Abraham

Baker Tilly Virchow Krause, LLP

EMPLOYEE BENEFITS - WINTER

Janice L Forgue

Marcum LLP

ESTATE AND GIFT TAX

Lee A Arbus

Levun, Goodman & Cohen, LLP

FINANCIAL INSTITUTIONS

Ryan Abdoo

Plante Moran, PLLC

FRAUD & FORENSIC

Frank L Der y

PricewaterhouseCoopers LLP

GOVERNMENT

Linda S. Abernet hy RSM US LLP

HEALTHCARE COMPLIANCE & FRAUD

Howard L Stone

Stone, McGuire & Siegel, PC

IRS/TAX PRACTITIONERS

SYMPOSIUM

Michael J Singer

Michael J Singer & Co , PC

FINANCIAL REPORTING

SYMPOSIUM

Joseph Howell

Workiva

NOT-FOR -PROFIT - ROSEMONT

Susan Greggo Warady & Davis LLP

NOT-FOR -PROFIT - SPRINGFIELD

Lori K Milosevich

Estes, Bridgewater & Ogden CPA s

NOT-FOR -PROFIT ADVANCED AND EMERGING ACCOUNTING AND A-133 ISSUES

Jennifer Richards

Crowe Hor wath LLP

STATE AND LOCAL TAX

David J Kupiec

Kupiec & Mar tin, LLC

TAXATION ON REAL ESTATE

Rober t Beesley

Deloitte Tax LLP

WOMEN’S LEADERSHIP FORUM

Lindy R Ellis Ernst & Young LLP

Member Forum Groups Chairs

FUTURES, SECURITIES & DERIVATIVES

Adam J Wilhite

RSM US LLP

MANAGEMENT CONSULTING

Milan G. Weber

Kwikclarity

NOT-FOR -PROFIT

Alison H Fetzer

ORBA

PERSONAL FINANCIAL

PL ANNING

Elizabet h D Buf fardi

Crescendo Financial Planners

Brian J. Kearns

EmberHouse

Task Force Chairs

COMMITTEE STRUCTURE & VOLUNTEERISM

Rona Bezman

Rona Bezman, CPA

CPA EXAM AWARD

Elizabet h A Murphy

DePaul University

LEGISL ATOR TAX GUIDE

Victor V Scimeca

Victor V Scimeca, CPA

LIFETIME ACHIEVEMENT AWARD

Scott D. Stef fens

Grant Thornton LLP

Other Volunteer Group Chairs

DIVERSIT Y ADVISORY COUNCIL

Seun Salami

Jones Lang LaSalle Inc

YOUNG LEADERS

ADVISORY COUNCIL

Megan P Angle

Por te Brown LLC

YOUNG PROFESSIONALS GROUP

Kate Burian

CohnReznick

Meghan K. Rzepczynski

Crowe Hor wath LLP

Accounting for AI

IBM’s Watson tackles audit and tax as artificial intelligence takes on the accounting world

By Ryan Watson, CPA

Ken Jennings was untouchable. Beating back competitor after competitor, he strung together a winning streak for the ages, which, to this day, remains the longest winning streak in Jeopardy history. Then, in February 2011, Jennings squared off against his most formidable opponent in his historic 74th game. Watson.

Weighing in at just under 1,500 pounds and having 200 million pages of information committed to memory, Watson didn’t look like the 144 people Ken had defeated In fact, Watson wasn’t a person at all. Watson was IBM’s AI (artificial intelligence) supercomputer, and unseating the greatest trivia expert of all time was just the coming out party for what appears to be a long and disruptive livelihood.

Its latest endeavor? Accounting

Who’s Watson?

A pioneer of cognitive computing, Watson is quickly becoming whoever you need it to be. Unlike basic computing, which only works with structured data in databases, Watson relies on natural language processing to understand and process unstructured data Meaning, rather than solely looking for keyword matches, it evaluates words and phrases to interpret the context and draw inferences about the meaning and intent just like you and me

When Watson begins in a new domain like tax, for instance it begins with a basic collection of information as the foundation of its knowledge Then, with the help of human experts, it refines its knowledge through a process known as machine learning, where it evaluates pairs of questions and answers to understand linguistic patterns in the data Like humans, Watson uses information to form and analyze options, develop hypotheses, make decisions, and ingest results, getting “smarter” with each feedback loop.

Watson Rising

In Watson’s first commercial application, it outpaced real doctors in successfully diagnosing lung cancer. IBM has since partnered with many industry leaders in education, financial services, healthcare, and more, and is by all accounts looking to be the central AI engine powering all business and consumer applications through its developer ecosystem and open application program interface

It was just a matter of time before Watson would take on the accounting world, and that time is now

After all, Watson excels at analyzing terabytes of disparate, unstructured data to apply order and context Watson processes this data and makes determinations on it in mere milliseconds In many ways, evaluating data and applying “rules” is the bedrock of traditional accounting work, leaving Watson poised to disrupt a significant amount of the work being done.

Automated Assurance

Not buying it? Several of the largest firms in the industry have already begun deploying Watson in exactly this way While they’ve not disclosed all of the specifics around its application, KPMG is leveraging Watson in its audit practice to analyze large volumes of structured and unstructured data related to a company’s financial information Watson is being trained by KPMG’s auditors to fine-tune assessments, giving them faster access to precise measurements used to analyze anomalies

An increasingly important component of assurance work is performing analytic procedures on individual transaction data Historically, these procedures have been limited and basic, restricted by the computing power of humans and their laptop computers. But with Watson, all bets are off. And as the technology

behind the AI supercomputer improves, it will continue to make more sense for firms, like KPMG, to use Watson to develop a much richer understanding of the enormous amounts of data that we’re increasingly producing

Tackling Tax

H&R Block is another noteworthy player leveraging Watson to disrupt traditional business practices, but this time it’s for tax preparation

“By using Watson, H&R Block’s tax professionals highlight additional areas of possible tax implications based on a personalized cognitive interview,” explains George Guastello, H&R Block vice president of client experience “The client can follow along with the tax professional on a monitor that brings to life key focus areas for deductions, making tax preparation more engaging and transparent ”

What’s interesting about the H&R Block/Watson partnership is that it offers us a glimpse into the future of human and machine interaction According to Guastello, Watson isn’t replacing tax preparers, but rather helping them do their jobs better

“Tax professionals are the heart and brain of the client experience, that role will not change,” says Guastello “Watson augments and expands human intelligence, it does not replace it This is man and machine working together; the best tax professionals working with the best technology to deliver the best outcome for clients.”

In this, we begin to see a future for how AI and humans will exist symbiotically. In professional service industries where trust is foundational to the relationship, automation alone is unable to service the need However, when automation and client service combine, the promise is a higher quality product at a lower cost, benefiting both the accountant and the client in the long run

AI Ahead

It’s unclear what IBM’s true intent is for Watson in the accounting space, but clearly opportunities for AI in the industry exist broadly Machine learning systems are increasingly being implemented into accounting platforms, automating manually repetitive tasks. For instance, cloud-based accounting software provider Xero recently applied machine learning capabilities to its “Find and Recode” function, a function designed to help accountants and bookkeepers tidy up their clients’ incorrectly coded entries.

The model learns from invoice coding behaviors, noting any mistakes recognized and corrected by the advisor, and then offers suggestions and predictions Next time the user tries to affix an incorrect code to an invoice, the machine learning system suggests a label that should be used instead.

What’s next? Imagine a big data engine that can monitor credit worthiness against thousands of indicators and approve financing in seconds Consider the possibility of an audit quality system that can perform real-time benchmarking against a perfectly comparable peer group Perhaps we’ll one day see a program that can do smart forecasting based on company-specific and macro-economic trends They’re all likely scenarios that will bring change to accountancy

There will never be a future without human accountants and bookkeepers, but those who will succeed in the age of automation and machine learning will welcome the disruption In this future, the accounting professional will be focused on offering intuitive insights and more value to their clients And the mundane, dirty work? Well, we’ll leave that for the machines.

Ryan Watson, CPA is a founder and principal of tech-savvy accounting firm Upsourced Accounting and Xero’s Midwest ambassador He can be reached at rwatson@upsourcedaccounting com

Building a Border Battle

Among turbulent legislative times in Washington, D.C., the possibility of a controversial border adjustment tax has resurfaced

By Robert J Derocher

Calling themselves the American Made Coalition, CEOs from some of the U S ’s largest companies and corporations have urged Congress to tackle our outdated tax system, passing “big and bold” tax reform including a border adjustment tax (BAT)

When it comes to deciphering the details and divining the direction of a so-called BAT along with the broader issue of federal tax reform it might be a good idea to have a good accountant, a knowledgeable economist, and a plugged-in D.C. insider on your team

“There’s a lot of complexity to this, and one of the biggest challenges is tracking it all,” says Joseph Calianno, CPA, JD, LLM, partner and international technical tax practice leader in Washington, D.C. for Chicago-based BDO USA. “There are a lot of things you have to be prepared for You need to think about all of the potential implications You can’t just ignore it ”

As Congress and the presidential administration continue to maneuver through turbulent legislative times in the District, talk of tax reform and the possibility of an often controversial BAT has resurfaced

While the BAT itself didn’t immediately appear on President Trump’s tax reform agenda, tax and finance observers say that doesn’t mean it’s completely off the table.

The question of just what the BAT might mean in the world of corporate finance and trade particularly for some Illinois firms who would like to see it enacted remains an open-ended one It’s also one that has CPAs and finance professionals on edge as they work to help their clients plan for the seemingly unplannable: guidance from Washington, D.C.

BATtling Ideas

The BAT gained traction last year as part of an overall U S tax reform package promoted by House Republicans, known more widely as the House Blueprint The Blueprint’s highlights included cutting the corporate tax rate from the current 35 percent to 20 percent as a means of spurring economic growth and reinvestment.

The idea behind the BAT? Shifting corporate taxes from an “originbased tax” (where goods are manufactured) to a “destination-based cash flow tax” (where goods are consumed), often referred to as a territorial tax system In short, a BAT would tax U S imports while exempting U S manufacturing exports

“It ignores cross-border payments and is trying to capture the net value of consumption in the U S , ” explains Rob Clary, principal in the international tax practice for KPMG in Chicago And, predictably, the BAT has backers and opponents.

“On the pro side, people say it encourages domestic production of goods in the U.S.,” he says. “On the con side, people say we have a global economy that is built on imports, and the import scenario will lead to higher priced products because of the higher taxes ”

Illinois-based manufacturing heavyweights with significant global sales, such as Chicago-based Boeing and Peoria-headquartered Caterpillar, have joined forces with similar-minded companies in the American Made Coalition, a lobbying and public information group to support the BAT And while the coalition includes other corporate titans such as General Electric, Johnson & Johnson, MillerCoors, and United Technologies, it also includes smaller but wide-reaching players like Mount Prospect, Ill -based Cummins Allison Corp , the only U S -based manufacturer and supplier of coin and currency handling products

In a posting on the American Made Coalition website (www. americanmadecoalition org), company Chairman and CEO William Jones spelled out his support for the BAT

“Cutting business taxes and rebating taxes on my exported machines would allow my company to increase sales,” he wrote “Although my costs would rise somewhat because I have to import certain components that are no longer made domestically, the border tax would compensate for that loss by canceling out the taxrebate advantage currently enjoyed by my foreign competitors.” And increased sales, he adds, would lead to more local hiring and more local tax revenues for an improved economy It’s a theme echoed by American Made Coalition spokesman John Gentzel, who calls the BAT a vital component of the House Blueprint. The BAT, he says, is not a stand-alone tax and is part of overall tax reform

“People recognize that the current tax code is broken and that it’s too complex,” Gentzel says “Our broad hope is for pro-growth tax reform That’s what we’re hoping to see accomplished here ”

At the same time, the National Retail Federation (NRF), whose members range from big-box retailers to mom-and-pop shops, has also launched a strident anti-BAT campaign, predicting that a BAT would substantially drive up the tax bills of many import-dependent retailers particularly small business owners

The NRF has produced a series of As Seen on TV-style commercials taking aim at the BAT:

“It’ll tax your car, your food, your gas, your medicine, your clothes you name it, BAT will tax it!

And that’s not all. As a special bonus, we’ll include the new jobkilling formula for free! You’ll get it all the income-chilling, taxbringing, job-killing BAT ”

Further pressing the concern, a survey of the University of Chicago’s Initiative on Global Market Economic Experts Panel in April found that 40 percent of respondents agreed that a BAT would “substantially raise prices for U S consumers,” with just 19 percent disagreeing

“The big concern is that if you’re a net importer, this could have a significant impact on your tax position,” Calianno says

BATtling Uncertainty

While the University of Chicago’s panel findings raised concern about rising prices under the BAT, they also highlighted the biggest: uncertainty. Because, while 40 percent of those surveyed said higher prices were likely under the BAT, the same percentage said that they just weren’t sure

And for many financial observers, that’s just where the problem lies now tax reform has become an unpredictable waiting game.

“It still isn’t clear where the administration is on this,” Clary says. “We have a lot of proposals out there in the Tax Reform Sweepstakes, and the BAT is still out there ”

Questions also linger about the survivability of a BAT, either as proposed or in an amended form

“How will it affect importers? How will it affect costs? This is something that is outside of the scope of tax geeks,” Clary adds.

“The economists are continuing to deliberate on this ”

Calianno adds that the complexity of modern global trade only increases uncertainty. Many companies regularly import and export raw materials and goods to create products, he says, which could blur the lines of what’s taxable and what isn’t Questions also remain about services, aside from physical products

As a result, Clary and Calianno say that accounting firms are spending more time with their clients talking about what may or may not happen, and how to prepare for what comes out of Washington, D C

“Our clients are preparing for multiple scenarios We’re sitting down with them and helping them understand the potential impacts to their business,” Clary explains

And all that complexity and those concerns could bring a mixed bag for accountants, as well, Calianno says “To a large degree, accounting firms are providing a service, and they’re providing this service all over the globe,” he says, meaning, while many CPAs would do well to develop sophisticated tracking systems for their clients, firms themselves need to consider their own tax implications.

To a great degree, this all adds up to a great deal of uneasiness for finance professionals “It’s a challenging pill to swallow,” Clary says. “And businesses don’t like uncertainty.”

Live Local, Think Global

In today ’ s business world, the globally minded CPA will inherit the work.

By Sheryl Nance-Nash

Once upon a time, caring only about the comings and goings in your neighborhood or city, and maybe even your state, was enough to get by in life and business Those days are gone Today, if you’re not looking at everything through a global lens, you may as well be blind

“You’ll be so far behind, you’ll never catch up. Your competitors will surpass you and get the business,” stresses Debra Benton, author of “The Leadership Mind Switch ” “And you’ll miss out on some great food that your mama never made!”

All joking aside, “any business leader who is worth the role simultaneously thinks about globalization, changing demographics, and technology changes all of the time,” she adds “It’s the new world of work ”

“Gone are the days when you could confine your thinking to domestic implications,” says Suz O’Donnell, executive advisor at global management consulting and leadership coaching company Thrivatize “Whether you think your work is global or not, there are always global implications ”

What this all means is it’s imperative to build a global mindset if you want your career and business to keep moving forward

“The higher you rise, the less important the basic duties of your job become. Crunching numbers, consistent accuracy, and critical thinking are all job requirements that got you to where you are now. Thinking globally will take you to the next level,” O’Donnell says But what does thinking globally really mean?

The challenge for most CPAs is that global thinking is a relatively new concept “Most CPAs don’t think globally because we were never taught, nor encouraged, to do so. Most of us were simply taught to take good care of our clients which meant doing quality work on a timely basis for a reasonable fee,” explains Howard Rosen, CPA, JD, AEP, director of business development at Mesa, Ariz -based Schmidt Westergard & Company PLLC “That’s not the world of today. Today we all compete on a global basis, and if we cannot do so, our future is in peril ”

The mindset behind global thinking isn’t just about sustainability or survival, though; it’s about making you a better professional and building a better profession Here’s how to get started

1. Get Forward-Focused

“If you don’t want to get left behind, move forward,” says John Norman, CPA, partner at Charlotte, N C -based CPA and advisory firm GreerWalker LLP Simply having technical knowledge and know-how isn’t enough anymore if you want to build lasting business relationships

“‘Globalization’ has become the buzzword of the last two decades. Our industry in general might not have adjusted to the new market conditions as fast as other industries have,” he says, “but you clearly see that’s changing ”

“You need to have a genuine thirst for knowledgeable about economic, political, and cultural issues around the world, and to look into the complexity of international affairs,” Norman continues, suggesting tapping into the news and resources from

organizations like World Affairs Councils of America, The World Trade Association, and the international chambers of commerce where your customers or clients do business as a good way to start growing your global mindset.

The point is a global mindset isn’t an innate feature, but it can be developed, adds Dr. Lilac Nachum, professor at Baruch College’s Zicklin School of Business in New York and an international business executive educator and consultant “Social interaction with people outside one’s usual circles, and connection with people that differ from one’s own, is a particularly effective means for the development of a global mindset,” she explains “Research shows that professionals across all business areas considerably improve their scores on global mindset tests after engaging in such activities ”

2 Tap Your Clients’ Minds

Thinking beyond the world you live in means also thinking more about the world your customers and clients live in. Truth is, today, even if your company or your clients are domestic, they have global competitors or suppliers affecting their business

“Talk with your clients See how they interact with their customers and learn how they do business outside their local markets,” Rosen suggests. “Global thinking is looking at your market on a worldwide basis Do you have clients with operations in Canada or Mexico? Do your clients sell into Europe or Africa? It’ll amaze you how much international business your clients do once you ask them about it.”

Being curious not only benefits you, it likely benefits business relations, too Sharing his experience, Rosen recalls a client from the printing industry “One of their customers was a foreign auto manufacturer who had plants in the U.S. Our client printed owners’ manuals for the cars When we did a bit of inquiry, we discovered a portion of the autos built in the U S were shipped to other countries for end-user sale. This created a tax planning opportunity that

wouldn’t have been available if the cars were sold only in the U.S. Thinking globally allowed us to assist our client in an ongoing technique that lowered their taxes.”

3 Pull From the Profession

“To me, global thinking also means thinking about business opportunities existing outside of our boundaries and how our services can create value when we address the needs of foreignowned entities doing business in the U S and domestic companies doing business in other parts of the world,” Norman explains.

What better way to learn about the needs of your foreign counterparts and the value you can bring them than straight from the source?

“Join one of the many international associations of accountants. Attend regional and worldwide conferences that accounting associations sponsor. Meet members from other countries,” Rosen encourages “These are the best sources ”

For those of you already working in a global organization or firm that does business abroad, it would behoove you to take on a global role or expatriate assignment to enhance your global mindset, grow your leadership profile, and also to spice up your work life

After all, even if you think you’re not currently working in a global environment, we’ve got news for you: You are.

“The reality of today’s business environment is that we’re competing with businesses throughout the world If you’re still thinking that your competitors are just down the street, you will probably not stay in business for very long, at least not very successfully,” Norman says

“The sooner we recognize this, the better,” Rosen adds “If we don’t recognize the importance of global thinking, we as an industry are doomed to failure.”

CPA

If you’re a CPA with a specialized interest, you can build on the value of your license by adding an AICPA advisory service credential: Personal Financial Specialist (PFS™ ), Accredited in Business Valuation (ABV ® ), Certi ed in Financial Forensics (CFF® ) or Certi ed Information Technology Professional (CITP® ) developed for the profession by the profession AICPA credentials make a statement They set you apar t and get you noticed. And, they can seriously boost your career.

CFO : Mission Possible?

Increasingly tasked with being all things to all people, today ’ s CFOs are being asked to make the impossible possible

By Carolyn Kmet

The last decade has forcefully redefined the role of the chief financial officer (CFO) from a shadowed back-office numbers-cruncher into a power figure whose presence and influence permeates the entire organization

To little surprise, 85 percent of CFOs surveyed by Robert Half Finance & Accounting say their roles have expanded outside of traditional accounting and finance over the past few years, with human resources and information technology as two of the most commonly cited new areas.

Which begs the question: Is pushing and pulling CFOs away from focusing only on mission-critical finance functions in the best interest of the business world? Or, perhaps it doesn’t matter right or wrong, this is the new norm

“ T h e C F O r o l e h a s e v o l v e d f r o m b e i n g t h e s c o r e k e e p e r t o b e i n g a t r u s t e d b u s i n e s s p a r t n e r, ” explains Ken Hager, who experienced the evolution of the modern CFO firsthand as he helmed the CFO role at DST Systems Inc from 1988 until retiring in 2014 “Effective CFOs need to understand not only the financial dynamics of the business, but also the business itself, the markets served, and all of the challenges facing businesses ahead ”

If that’s not enough, the CFO’s purview now extends beyond internal operations, too. Today, it’s common to see CFOs at the forefront of representing their organizations to customers and clients, consultants and advisors, and stakeholders, shareholders, and investors alike. Which, as Jason Heath, CFO of Leadpages and former CFO of Media Temple, says, requires today’s current and prospective CFOs to develop “a deep understanding of the customer and what challenges they face ”

What’s accelerating this endless evolution is our increasing reliance on technology and data in driving decision making.

Are you ready to invest in your future?

Whether you want to improve technology, increase staff, or expand your CPA practice through acquisition, Oak Street Funding can fund your growth plan. We specialize in financing for CPAs based on future fees rather than personal assets. From initial growth through the development and eventual divestiture of your practice, we can provide capital to meet your goals.

•

•

•

•

•

“ To d a y ’s C F O s h a v e a c c e s s t o i n f o r m a t i o n a b o u t t h e d e t a i l s o f resource consumption and the efficiency of invested capital that empowers them to be more proactive, and also more concerned about the entire spectrum of company performance and not just financial results,” says Ian Charles, CFO of Host Analytics “It’s expected that today’s CFO will deliver strategic, data-driven guidance and apply critical thinking to decisions across the organization ”

“This oversight of all aspects of the organization has turned today’s C F O i n t o a s t r a t e g i c p a r t n e r f o r t h e C E O a n d n o t j u s t a b e a n counter,” Charles continues “Now the CEO is empowered with a valuable partner who is armed with data that allows for accurate, quick, and insightful business decisions.”

The truly successful CFOs, however, will be those that embrace these expectations and continue to evolve, both personally and professionally, to meet them

Role With It

“Now, successful CFOs must be adept at navigating not only technical accounting, but also human resources, risk management, developing and monitoring key performance indicators (KPIs) for operations, and constantly worrying and planning for what’s next,” says Matthew Hinson, CPA, principal at Live Oak Advisors, who points to the demands of middle-market and private companies as big drivers of the continually evolving CFO role

With this increased exposure and reach into functions beyond traditional corporate accounting and finance comes the opportunity and responsibility to guide, advise, and inspire departments across an entire organization.

“Modern CFOs are expected to deliver strategic guidance that will positively impact the company’s bottom line,” explains John Sadofsky, director of permanent placement services for Chicago-based Robert Half Finance & Accounting

For example, Sadofsky says CFOs are increasingly collaborating with HR to contribute to decisions aimed at attracting and retaining the best talent while also spending efficiently and effectively on that talent. Not only do these decisions impact an organization’s bottom line, they play a key role in managing risks in an increasingly competitive business environment

H a g e r e x p l a i n s t h a t t h e c u r r e n t e m p h a s i s o n r i s k m a n a g e m e n t across all business functions is requiring CFOs to gather and assess both quantitative and qualitative metrics in order to generate a holistic view of organizational performance.

While developing risk management strategies has always been a traditional expectation of CFOs, Heath says that today’s leading

finance officers must take it a step further “The CFO must develop strategies that objectively hold departments accountable to their results, while at the same time encouraging, allowing, and assisting teams to take risks and invest in new business ideas that ultimately drive growth,” Heath says

R e a l l y, i n o r d e r f o r C F O s t o e f f e c t i v e l y f u l f i l l t h e i r “ b a s i c ” j o b duties today, they must fully understand the increasingly competi t i v e a n d c o m p l e x n a t u r e o f t o d a y ’s b u s i n e s s e n v i r o n m e n t a tough task when our technological and regulatory environments are in a constant state of change

“These forces require a broad skill set to triage and identify where there is value and opportunity for investment and innovation and where the organization should focus its time,” Heath says Right or wrong, organizations are increasingly being scrutinized for their decisions in these arenas, further heightening the visibility and significance of the CFO

In short, “It’s tough out there!” Hinson says

Mission Ready?

With such broad responsibilities, the question now becomes, can one truly prepare to be a CFO?

Those already on course for the C-suite would be well-served to actively build relationships across functions within their organizations, Heath says. “Sit with customer service to learn what customers need; meet with engineers to understand cutting edge technologies; work with marketing to help evaluate performance of a new campaign or branding exercise,” he encourages “A strategic CFO must have a strong understanding of the undercurrent that drives the business if they hope to create and drive value ”

“Those who aspire to the position definitely need to pay their dues in accounting and finance first,” Charles suggests. “Work for an accounting firm; work in investment banking; work for large companies, small companies, and even go the route of an entrepreneur if you can ”

Point being, managing your career to get as much experience as possible is what’s needed first; because today’s CFOs have oversight and influence over the entire organization, they must have a broad background that spans functions as well as industries.

Sometimes scars can be seen, and sometimes they can’t The important takeaway is that scar tissue often teaches you what not to do as much as it teaches you what to do,” Charles says. “But remember, it takes a passion to build, grow, and preserve the value of a business.”

“Effective CFOs need to understand not only the financial dynamics of the business, but also the business itself, the markets served, and all of the challenges facing businesses ahead.”

You probably already have

But do you have enough?

Over the years, your living expenses may have increased Could your current life insurance benefits:

• Help your family maintain their lifestyle?

• Pay for your kids’ college education?

• Allow your spouse to retire comfortably?

It’s always a struggle to lose someone you love. But your family’s emotional struggles don’t need to be compounded by financial problems

That’s why the Group 10-Year Level Term Life Insurance Plan is made available to ICPAS members.* This valuable insurance program offers:

• Your choice of benefit amounts up to $250,000.

• Rates that are locked in for 10 full years.

• Benefit amounts remain steady for the 10-year coverage period. There are no age reductions.

Getting Out What You Put In

In the Outcome Economy, data- driven decision-making reigns.

By Robert J Derocher

There are bean counters, and then there are laugh counters No, wait I’m being absolutely serious In Barcelona, Spain, the Teatraneu Theatre uses facial recognition technology to register each laugh and charges customers on a per-smile basis The result? A 25 percent revenue increase over previous ticket prices, says Steven Tiell, senior principal at Accenture Labs in San Jose, Calif

WELCOME TO THE WORLD OF THE OUTCOME ECONOMY.

“It’s no longer about selling products and services; it’s about selling more meaningful outcomes,” Tiell explains. “It upends long-held notions of how superior products and services are defined.”

Thanks to continued technological advances, companies no longer need to just sell a widget or a service and move on Now, they can learn about the consumer who bought that widget and what they did with it, in the hopes of selling more widgets, making better widgets, and being more useful to consumers down the road. And that’s likely to mean more precise tracking, auditing, and financial analysis in the future as the global economy shifts towards more precise measurement of who buys what and why and how it all works out in the end

THE AGE OF DATA AND THINGS

Helge Tennø, a technology consultant, writer, and speaker in Oslo, Norway, traces the beginnings of the Outcome Economy to GE Chairman Jeffrey Immelt’s discussions about the company’s cloudbased platform for the Industrial Internet, Predix, in 2014

“GE could move to an economy where the business model was based on the measured output of their solutions,” Tennø explains. “Since then, there has been an emergence of smarter and smarter hardware as in sensors, software as in AI (artificial intelligence), and machine learning which has increased our ability to measure whatever ”

One of the keys to the acceleration of the Outcome Economy, according to Tiell, has been the ability among more companies to place that intelligent hardware where digital and physical worlds intersect, allowing companies to capture meaningful data that can generate information and insights into how customers use products and services

And in this new technological frontier, the term “hardware” is not confined to the traditional computer lingo of servers, networking gear, and PCs, Tiell explains. How about getting feedback and information from your washing machine, the activity tracker on your wrist, nearby security cameras, or your office elevator?

“With this feedback loop, companies are, for the first time, able to have a quantifiable, end-to-end understanding of how their products perform not just for their customers, but for their customers’ customers,” Tiell adds. “The Outcome Economy is defined by companies’ abilities to create value by delivering solutions to customers that, in turn, lead to quantifiable, measurable results ”

And that, in turn, brings a deeper understanding of what customers ultimately want from those products and services.

The concepts, collectively referred to as the Outcome Economy nowadays, are not entirely new, says Swaminathan Sridharan, John and Norma Darling Distinguished Professor in the Accounting Information and Management Department at the Kellogg School of Management, Northwestern University, Evanston, Ill “Measuring data related to products and services delivered, customer behavior including customer satisfaction, and the efficiency of such operations at every link of the value chain is something we’ve been studying and practicing for several years now. The difference now is that companies are able to measure more precisely a greater number of such aspects throughout the value chain thanks to improved flow of information ”

The obvious benefit, he says, is more data, more quickly, which enables real-time decision-making to meet customer demands

A GLOBAL REVOLUTION

In just a few short years, the Outcome Economy has picked up momentum across the globe In Europe, Tennø credits Finnish companies and groups such as Siemens and Smart & Clean (a public-private partnership dedicated to improving environmental sustainability in metropolitan Helsinki) with driving interest and changing established mindsets.

“What we were basically saying was, ‘Get off of autopilot, you can measure anything,’” he says “Don’t let that stop you from identifying new ways of finding and measuring what is important and valuable for your company, however.”

A 2015 report issued by World Economic Forum and co-author Accenture illustrates the growing potential for the Outcome Economy “Agricultural companies now have the data necessary to calculate how many bushels of wheat can be produced on a given piece of farmland with a particular mix of seed, fertilizer, water, soil chemistry, and weather conditions. By combining analytics software with connected tractors, tillers, and planters, they can apply the precise mix of seed and fertilizer to maximize crop yield at harvest,” the report stated.

Tiell cites two other specific examples of successful outcome-driven programs that illustrate this new economic approach:

The City of Los Angeles has 7,000 smart parking spaces that communicate real-time parking conditions to smartphone apps, telling

drivers where parking is available These connected parking spaces have delivered tangible outcomes: Parking revenue increased 2 percent; average parking costs decreased 11 percent; and space utilization increased 11 percent

Proteus Digital Health, billing itself as the world’s first digital medicine service, integrates a tiny, inert sensor in the pills it produces The sensor acts together with a wearable device and mobile app to provide full “adherence transparency,” indicating to patients, healthcare providers, and payers when medication is taken or missed Not only can the Proteus hardware-based system determine when patients take their medications, but it also can send alerts and reminders to patients if they forget to take a pill. What kind of economic impact might that have? A 2007 study by the New England Healthcare Institute estimated that missed medications cost $100 billion annually in excess hospitalizations alone.

“Delivering customer outcomes is a strategy for sustaining competitive advantage today,” Tiell contends. “It will be a turnaround strategy in the next few years, and a survival strategy beyond that.”

CHANGING THE FACE OF FINANCE

This new technology-fueled landscape is likely to mean a combination of old and new approaches to accounting and finance in the years ahead, Tiell and others say. Books will still need to be audited, finances analyzed, and information collected and disseminated, but just what’s in those numbers and how they’re analyzed is already changing, as is the finance approach behind them.

“There are new ways to accrue revenue, such as micro-payments, new commission-based roles, and ecosystem partners,” Tiell explains. “Similarly, raising capital has been upended. No longer are banks and capital markets the only options for financing new endeavors; crowdfunding or ‘customer-funded’ financing models are now as much a financial strategy as they are business and product strategies ”

The ready availability of more and more data also opens up possibilities for accountants and potential pitfalls, Sridharan warns.

“Accountants have always been looking for ways of going beyond our traditional business boundaries,” he explains “We now have quite a lot of data available Now auditors can gain access to off-balance sheets, and more access to computer networks I can foresee huge conflicts of interest Do you want insurance companies to know some of this information?”

Tennø worries that companies may misuse the surplus of data to the disadvantage of customers as well as their own employees “The prerequisite for understanding the market is measurable data However this leaves out troves of valuable data that gives insight and understanding, but is just not measurable,” he says “With the Outcome Economy, we are trying to capture more data that can be measured, but also make sense of data that is important but not measurable.”

Tiell foresees “an ecosystem-driven digital economy” with increasing business/technology partnerships continuing to drive change “In fact, one of the key trends we identified in the Accenture Technology Vision 2017 report is that to fulfill their digital ambitions, companies will need to take on a leadership role to help shape the new rules of the game,” he says.

While there still may be some ethical minefields, Sridharan agrees that the Outcome Economy will present opportunities for the accounting and finance industry, with versatility and technological literacy being important requirements.

“We can’t call ourselves by just one name we’re not just accountants,” he says “It’s a very exciting time to be a student of economics And if you’re a practice manager, you better learn about what’s happening ”

As regional managing partner of the Great Lakes Region of RSM US LLP, Donna Sciarappa, CPA has more than 25 years of assurance and business advisory experience. She recently completed a four-year term on RSM US LLP’s board of directors; she’s also a member of Leadership Cleveland’s class of 2010, a past recipient of YWCA Greater Cleveland’s Women of Achievement Award, and was named to Crain’s Cleveland Business’

“40 Under 40” list

In other words, Sciarappa doesn’t really need any more credentials or credits to her name, but when The Committee of 200 (C200), an invitation-only professional organization for the world’s most successful women entrepreneurs and corporate leaders and one of the more exclusive membership organizations headquartered in Chicago came onto her radar two years ago, this CPA simply couldn’t ignore the opportunity.

FOR MEMBERS ONLY!

By Br idget McCrea

After all, Sciarappa had recently taken on the role of regional managing partner at her firm and found herself spending more and more time in Chicago

“I really didn’t have a network in Chicago, so I was looking forward to an opportunity to get to know other women professionals in the community,” Sciarappa recalls. Working with C200’s membership coordinator, Sciarappa completed the process of joining and soon found herself immersed in an invaluable network of women and resources

Sciarappa says C200 has since exposed her to several “extremely well done” group events where she’s tapped the minds of many successful, entrepreneurial women “That creates a lot of energy and enthusiasm,” Sciarappa says, adding that she often shares the insights and knowledge she’s gleaned from those interactions with her Chicago colleagues and coworkers

“It’s been very positive for our ability to connect with people within the community,” Sciarappa says, noting that she’s looking forward to forging deeper bonds with fellow members under a new council.

C200 is in the process of setting up a new, more intimate council in Chicago, of which Sciarappa will be a member “It will be a smaller group, so we’ll all have the opportunity to spend more time with one another, really getting to know the group on a more informal basis,” she says “That's just one of the things I’m looking forward to as a member ”

THE MOVERS AND THE SHAKERS

Sciarappa’s story is just one example of what can come from being part of Chicago’s exclusive executive membership club scene, which dates back nearly 150 years to when The Chicago Club and The Standard Club both founded in 1869 paved the way for exclusive clubs and organizations.

Today, Chicago is home to many elite business clubs and organizations that provide benefits like important networking opportunities, access to industry events and experts, connections with potential clients, and in most cases the opportunity to enjoy some great

A peek inside some of Chicago’s most exclusive business clubs reveals a few good reasons why they’re the place to be for r ising accounting and finance pros.

food and wine, making Chicago a virtual hotbed for “joiners” who want to explore new horizons with like-minded professionals

Zachary Weiner, CEO at Chicago PR firm Emerging Insider, says social clubs have become key for professionals who want to expand their networking opportunities and entrench themselves in the social scene “As more and more consultants preach ‘digital,’ an investment towards face-to-face marketing is a factor of differentiation for savvy CPAs,” Weiner says “Social clubs offer this differentiating capability ”

For example, Weiner says clubs will often help qualified and credible CPAs reach out to their communities in a “non-promotional” manner, in person and outside of the digital noise “This persona-

The Committee of 200

C200 org

In 1982, a handful of the mos t power ful women in business gathered in Los Angeles to raise $200,000 for The National Association for Women Business Owners, a networ k dedicated to women entrepreneurs Once the group raised the funds, the member s recognized the collective s trength of the infor mal community they had created Ultimately, the founders, including K athar ine Graham and Chr is tie Hefner, conceived a broader agenda that became what ’s now The Committee of 200 (C200), with a membership that has far surpassed the original goal

From its first days, C200 has ser ved as a vit al networ k and community for women with common business leadership experiences and like-minded goals to come tog ether to share their successes and to suppor t each other. C200’s primar y mission is to foster, celebrate, and advance women ’s leadership in business through unique programming and professional and personal networking C200 leaders seek to promote success shared among the membership and with future generations of female leaders, and its members represent an innovative, suppor tive community of women Its uniq ue mix of cor porate leaders and entrepreneurs form an exclusive network

Membership is by invit ation onl y Annual dues: $1,800

based marketing and exposure carries far more weight than a Facebook ad, email, cold call, or webinar ever could,” he says

It’s not just CPAs that benefit from being part of business and executive clubs, either Trave Harmon, CEO of managed IT services provider Triton Technologies in Worcester, Mass , certainly isn’t a CPA, but he can attest to the value of joining multiple professional organizations and prestigious social groups

“When I started my business, I got involved with various clubs, chambers, and events that helped me make proper introductions to the ‘movers and shakers’ in the area,” Harmon says, who’s since met some of his largest clients through these groups “I’ve even met CPAs, attorneys, doctors, and business professionals who to this day are still helping me grow my business ”

The Executives ’ Club of Chicago

Executivesclub org

Since 1911, The Executives’ Club of Chicago has helped shape Chicago business and economic growth as one of the countr y’s premier executive member ship development and networking organizations

From its founding, the org anization has ser ved as a platform for senior-level executives; up-and-coming young leaders; professionals and entrepreneurs of large and small, local, national, and multinational corporations; leaders of universities; state and city government of ficials; and foreign dignit ar ies to build relationships, share ideas, develop new business oppor tunities, and par ticipate in wor ld-class programming

Each year, The Executives’ Club presents prog rams on cur rent business and economic trends that hosts some of the most influential global and local business trailblazers of the time think Amelia Earhar t, Bill Gates, Chr is tine Lag arde, Jamie Dimon, and Michelle Obama

Membership is by invitation only, and new members must be nominated by a current member Annual dues: Undisclosed

Entrepreneurs ’ Org anization, Chicago

EOChicago org

The Entrepreneurs’ Organization (EO) is a global business network of more than 12,000 entrepreneurs spread around the globe Founded in 1987 by a group of young entrepreneurs, EO aims to inspire business owners to engage in its expanding peer-to-peer networked and to learn from each other, leading to greater business success and an enriched personal life

The organization provides resources in the form of global events, leadership-development prog rams, an online entrepreneur forum, and executive education oppor tunities, among other of ferings designed for personal and professional growth What ’s impor tant about this global organization is that it also has local chapters fur thering its mission

EO Chicago, named one of Chicago’s mos t exclusive entrepreneur ial clubs by Crain’s Chicago Business, has more than 136 local members and puts on its own regional events designed to help members build their businesses and gain inspiration from other local entrepreneurs

Prospective members must meet rigorous q ualif ications to appl y Annual dues: EO Global $1,900; EO Chicago $2,033 (excluding application and initiation fees)

Getting In

Without a doubt, Chicago’s exclusive business club scene is replete with oppor tunities for all professionals. Below are just six wor th explor ing

Giving Back

Regardless of which group you join, or which events you decide to par ticipate in, Sciarappa says professionals who put the time and energy into the organization will def initely get more than their fair share out of it “Ever y time you meet with someone and give back a bit of your time and energy, the relationships that form are incredible,” Sciarappa says

“I belong to a few dif ferent groups, but I’m pretty selective, and I make sure that I can spend the time and energy to develop those relationships I would encourage others to do the same,” Sciarappa adds In particular, she says CPAs should seek out the business groups that will help them keep their fingers on the pulse of the local and global business communities “As CPAs, when we advise our clients, it’s really impor tant that we get a sense for what’s going on in the business world,” she says. “This is a great way to accumulate that knowledge while forming relationships and giving back to the community at the same time ”

The Chicago N etwor k

TheChicagoNetwork org

A letter went out in the summer of 1979 “calling together women distinguished by their achievements in business, the ar ts, the professions, government, and academia ” Of the 113 recipients, 97 exceptional Chicago women accepted the invit ation to meet for the f ir s t time And so, The Chicago Network (TCN) was formed Today, TCN has more than 450 members from Chicago’s business, professional, cultural, nonprofit, and educational communities set on a mission to connect for professional and per sonal g rowth; advance civic, business, and philanthropic communities; and inspire and suppor t the next generation of leaders TCN has various initiatives aimed at leveling the playing field for women in business, including expanding their presence in boardrooms and executive suites.

Membership is by invit ation onl y Annual dues: Undisclosed

The Commercial Club of Chicago

Commercialclubchicago org

“From Wacker Drive to Grant Park to the Museum of Science and Industr y, The Commercial Club of Chicago and its af filiate organizations have played a role in shaping Chicago ” That ’s a nice introduction to this organization that was founded in 187 7 Membership, however, is limited to onl y 350 active members, and tot al membership is approximately 500, including active, life, and non-resident members, making The Commercial Club of Chicago quite exclusive That ’s before you consider that to even be considered for membership, you must be nominated in writing by a Commercial Club member and seconded by at least six other members

But gaining entr y is cer tainly wor th it The Commercial Club of Chicago br ings tog ether leading men and women of Chicago’s metropolit an area business, professional, cultural, philanthropic, and educational communities

“If an issue is cr itical to Chicago, it ’s impor tant to us,” the organization states on its website “ That includes economic, development, and social issues ” The group holds luncheons nine months out of the year which draw in leaders from business, government, and the civic arenas both locally and nationally to discuss key “news of the day ”

Election to membership is highly limited

Annual dues: Undisclosed

Chicago Finance Exchange

ChicagoFinanceExchange org

Chicago F inance Exchang e (CFE) was founded in 1980 as the premier networ k for accom plished women leader s in f inance in Chicago’s public, pr ivate, and non-profit business communities This includes the likes of CFOs, CPAs, commercial and investment bankers, treasurers, venture capitalists, and more Launched with 25 member s, CFE has over 230 member s today and provides member s with an assor tment of professional and networ king events aimed at better ing its community and the business wor ld through the exchanging of ideas, experiences, and exper tise

According to CFE’s website, its key organizational goals include actively exploring and sharing ideas and exper tise impor tant to today's financial decision makers; creating a professional and personal community resource within the engaged member base; and contr ibuting ideas, exper tise, and talent to the Chicago and global business communities

Member ship is by invit ation onl y and an existing member must sponsor new members Annual dues: $600

the bias

By Kr istine Blenkhor n Rodr iguez

CPAs are sticklers for the numbers adding up, balancing out In the public accounting profession, however, despite women accounting for roughly half of all accounting education program enrollments and employee counts, they hold fewer than 25 percent of firm partner roles, according to research by the AICPA’s Women’s Initiatives Executive Committee (WIEC). These numbers just don’t add up, no matter how you crunch them

This isn’t “news ” Despite years of articles, surveys, and reports highlighting the issues and challenges women face in accounting and finance, and calls for dedicated efforts and initiatives to promote women’s advancement within firms, the numbers of women at leadership levels still come up short Despite women holding commanding representation within the new professional and associate ranks, and even among senior managers and senior associates in many segments, their numbers decline rapidly at top leadership levels

It’s a cold reminder of the “frozen middle” as Andrea March, CEO and cofounder of the Women’s Leadership Exchange, calls it the point in a woman’s career where she has reached the ranks of middle management and then must seemingly leave a firm for outside opportunities or be content to progress no further

At a time when most organizations are lacking gender equality in their leadership ranks, it takes best-in-class empathy to make change and strive for greater representation of women in executive accounting and finance roles.

It’s time for this to change.

Paving Their Way

Where do women go if they’re not advancing in public accounting firms? Career changes are an obvious choice, but they’re not the only one The WIEC 2015 CPA Firm Gender Survey found that women make up 43 percent of partners at firms with two to 10 professionals, indicating that women stalled within larger firms may be deciding to take ownership into their own hands, in their own firms. This is a noble and commendable move one that’s certainly a positive development for the profession as a whole But we still should question why it has come to this.

Illinois CPA Society members Alyssia Benford, CPA and Kimi Ellen, CPA are prime examples of that 43 percent Following decades of combined Big Four and corporate finance, advisory, and audit experience, the former college sorority sisters founded Benford Brown & Associates LLC in 1996 as a certified minority and woman-owned CPA firm.

“We had to create what worked for us because the firms we worked for didn’t,” says Benford Referring to herself as a pragmatist, Benford readily admits that owning her own firm was her solution to advancement and work-life balance after being unable to find it at large accounting firms and corporations

“I needed to be in a place where hours were not unreasonable, quotas were not the basis for partnership, and where being a woman more significantly, a woman of color was not hurting my career,” she explains “It was about me taking the initiative rather than waiting for a firm to do it for me ”

Working With Women

Benford’s public accounting and corporate experience isn’t an anomaly or isolated case In fact, McKinsey & Company released research earlier this year indicating that regardless of how compelling gender diversity and equality may be among organizations, progress towards gender parity remains slow across the business world

Much like in public accounting, women are struggling to tip the scales in public and private companies and board rooms in the U.S. and abroad In the U S , only 17 percent of executivecommittee members are women, and women comprise fewer than 19 percent of members of corporate boards, according to McKinsey & Company’s report, “Women Matter 2016: Reinventing the Workplace to Unlock the Potential of Gender Diversity.” Among companies listed in Western Europe’s major market indexes, the respective numbers are 17 percent among executive committees and 32 percent among boards.

Paula Loop, director of PwC’s Governance Insights Center, told Forbes last year: “Typically, boards look for a candidate that has been a CEO or held another executive role, as boards often want current or former CEOs as directors But a mere four percent of S&P 500 CEOs are female and only 14 percent of the top five leadership positions at the companies in the S&P 500 are held by women That doesn’t make for a big pool of potential candidates ”

We’ve seen millions of women marching in unity in Washington, D C , and around the globe, to push for greater representation, a stronger voice, and equality in business and politics, among other things. With reinvigorated women’s movements garnering mainstream public attention, and board diversity becoming a visible and actionable shareholder concern, organizations must focus more on filling their pipelines with female talent sooner rather than later But how?

What are the organizations succeeding at advancing and retaining women doing differently?

McKinsey & Company’s report reveals three gamechangers among “best-in-class” organizations:

• Persistence. Best-in-class companies initiated diversity programs earlier, indicating that it takes time to effect tangible, sustainable results

• CEO commitment, cascading down to all management levels. Companies that have built gender diversity successfully at the leadership level are twice as likely to place gender diversity among the top three priorities on their strategic agenda, to have strong support from the CEO/management, and to integrate gender diversity at all levels of the organization

• Comprehensive transformation programs. Best-in-class companies have initiated change programs that ingrain gender diversity in all aspects of the business Specifically, those companies are more likely to have change agents and role models at all levels of the organization. They also have developed and communicated a compelling change story to support the programs, policies, and processes they have put in place.

At the ground level, two rather straightforward initiatives repeatedly come up among women in accounting leadership roles that encompass these game-changer ideas: sponsorship and flex-work programs

Sponsoring Change

While mentoring programs have become fairly common at most large professional services firms, programs alone don’t create change McKinsey & Company puts it clearly: “Although having a critical mass of measures is important, volume alone

does not explain women’s representation in top management Fifty-two percent of the companies in our sample implemented more than 50 percent of the gender equality measures, but only 24 percent of them reported having more than 20 percent of women in top management positions.”

What’s lacking for women, and what is a studied solution to the current bias towards men in leadership, March says, is actual sponsorship “Companies can’t say they have mentorship programs for women and leave it at that anymore,” March says “Women need sponsorship if we are to tip the scales anytime soon ”

“A mentor walks beside you. An executive sponsor walks ahead of you, and opens doors for you,” states the 2016 Accounting MOVE Project report, “Sponsorship: Stepping Up Success ” In other words, an executive sponsor puts his or her influence on the line for the benefit of another. A sponsor has the goal of helping a particular candidate gain a targeted position or assignment it’s about providing opportunity, pure and simple.

“Sponsorship is one of the most powerful and overlooked dynamics for propelling women through the talent pipeline,” according to the Accounting MOVE Project.

Finding the Flex

An unfortunate blockage in the pipeline for many women is the notion of a “baby penalty ”

“Women will not achieve equality in leadership ranks until the baby penalty is openly addressed by upper management,” March says “We need to speak about it without dodging the issue.”

What she’s referring to is the need to overcome the stigma that a woman simply can’t grow both her family and her career at the same time the idea that it must be one or the other.

“We generally tend to lose women at the manager level And usually, it’s because they get married and want to have a family Until we figure out how to exceed client expectations while also tending to a family, we’ll continue to have this dilemma,” explains Eileen Iles, CPA, CGMA, CIA, CFSA, CCSA, CRMA, chair of the ICPAS Women’s Executive Committee and a partner in Crowe Horwath’s Risk Management Financial Institution Group

Jackie Rosenfeldt, CPA, is just one example of how that dilemma can be overcome Rosenfeldt earned her place among Grant Thornton’s partner ranks while both working a reduced, flexible schedule about 80 percent of a “typical” workload and raising a young family. Her career has now surpassed 15 years with Grant Thornton, where she’s currently a partner and key leader in the firm’s Chicago audit services practice.

“As long as I kept working hard and focused, it all seemed to work out,” Rosenfeldt says “It’s a marathon, not a sprint You’ll still have some people who think you are not as motivated because you work flex time Take the long view Don’t take it personally Just deliver the results you need to get to that next career goal in the way that works for you,” Rosenfeldt adds, encouraging women to be mindful not to stifle their opportunities and to make finding a sponsor a priority, particularly those on flexible schedules, because as she puts it, “men often progress faster because they build relationships faster Women, instead, sit behind and finish the work up many times so they can get home to their kids ”

That said, Iles says she sees “more men taking time off to participate at home after a baby is born It’s a start and the more firms that accept it as a matter of course, regardless of gender, the quicker we’ll get to a more equitable gender leadership picture ”

Valuing Gen Next

In fact, as generational changes are pushing organizations to rethink their corporate cultures and be more considerate of staff wants and needs in terms of work-life balance, there’s hope that more balance and opportunity will come to all, which will in turn open more equal opportunities for women’s advancement.

One move Crowe Horwath has made to benefit all of the firm’s employees is launching its “Measuring What Matters” program In short, Iles explains that Crowe Horwath is aiming to increase flexibility when staff isn’t facing clients “Work from home, Starbucks wherever works for you. That’s the fundamental idea We emphasize results over chargeable hours How you get to the result is what works best for you ”

Crowe Horwath isn’t alone in this mentality; roughly 65 percent of the selected firms surveyed by the Accounting MOVE Project offer formal flex-work arrangements, and every generational change is expected to bring greater calls for flexibility and equality in the workforce

“You have to think that children raised by a female breadwinner will have different expectations about capability and equality at home and at work,” Benford says

Today’s best-in-class firms and companies are realizing this and are making equal representation of women within their organizations a serious science What remains to be seen, however, is whether the rest of the accounting profession, and the rest of the business world, will follow suit and put gender inequality in leadership to rest If so, it may be the first time the gender equality books are balanced ever.

By Timothy Inklebarger

There’s no question that politically and financially the state is in disarray that news is pushed on us day in and day out With billions in pension and healthcare debt, education missteps, and political inaction, it’s simple to see the issues lingering over the state like a dark cloud threatening to engulf any potential progress but there are some sunny spots on the horizon, like Illinois’ bright tech sector. Here’s what some of the top minds in the state think about Illinois’ business climate

STEM Initiatives

Despite the discontent over funding and pensions, it isn’t all doom and gloom for education in Illinois In fact, Illinois is making solid strides in science, technology, engineering, and math education commonly known as STEM The Illinois Science & Technology Coalition’s fall 2016 Illinois Innovation Index reported that 29 1 percent of Illinois graduates earned STEM degrees in 2015, outpacing the national average of 27 percent One especially strong spot is the state’s healthcare sector 41 9 percent of STEM degrees earned in Illinois in 2015 were healthcare related, compared to 34 2 percent nationally The Illinois Innovation Index also notes that Illinois was second only to California in computer science graduates.

Sure, Illinois still slightly trails the national average in STEM-related jobs, but in looking to the future, the Illinois Innovation Index projects that those lucrative STEM jobs new graduates and experienced pros are seeking “will grow at a faster rate than the national average over the coming decade ” Matt Bragg, Illinois Science & Technology Coalition program manager for data and policy, says that outlook is backed by Illinois Department of Employment Security statistics

Logically, Illinois-based universities are taking notice and committing major resources to STEM education In early 2016, the University of Chicago announced a major expansion of its computer science department, and Northwestern University rolled out plans to invest $150 million in computer science in the coming years The University of Illinois at Urbana-Champaign, identified by the Illinois Innovation Index as the fourth largest producer of computer science graduates in the country, also is expanding its program Even beleaguered Chicago Public Schools is continuing its STEM commitment, announcing computer science will be a graduation requirement starting with its class of 2020 as part of its ongoing and expanding Computer Science 4 All initiative. In turn, both the state and City of Chicago are making commitments to attract and develop STEM talent and build “communities and workspaces where STEM entrepreneurs can partner with business and talent to grow new companies ”

“These efforts include spaces such as 1871, Coalition: Energy, MATTER, mHUB, and a network of university-affiliated technology parks, as well as organizations such as Built in Chicago, Clean Energy Trust, and iBIO, among others,” according to the Illinois Innovation Index

Continuing along this path could eventually pay big dividends to Illinois’ workforce and business climate, as well as the broader economy, considering that the U S has been falling behind the rest of the world

“Today, as ever, the majority of employers struggle finding qualified workers it is among the most cited problems faced by executives. OECD [The Organisation for Economic Co-operation and Development] found that America’s high school graduation rate dipped from 18th among 24 industrialized nations a few years ago to 20th most recently,” reports John Rait in the U.S. Chamber of Commerce Foundation article, “To Compete Globally, America Must Up its Game ”

“In standardized testing of students, we remain on a downward track in rankings, dropping six places in reading literacy, six places in math literacy, and two places in scientific literacy And we place last in the proportion of college students receiving degrees in the skills of science, engineering, and math,” Rait reports.

A s I l l i n o i s we a t h e r s t u r b u l e n t times, some bright spots for its business climate are beaconing.

Innovation

Although the Illinois Innovation Index paints an optimistic picture of the state’s burgeoning high-tech workforce, Bloomberg offers a reality check with a more sober appraisal of the state’s overall innovation, ranking Illinois as the country’s 22nd most innovative state down one spot from the previous year based on the metrics of “R&D intensity; productivity; high-tech density; concentration of science, technology, engineering, and mathematics (STEM) employment; science and engineering degree holders; and patent activity.”

On Bloomberg’s scale of zero to 100, Illinois scored 54, which at least bests its Midwest neighbors of Indiana at 33, Iowa at 39, Missouri at 41, and Wisconsin at 42 Bloomberg notes, however, that “to some extent, the data show the limits of measuring healthy innovation For example, the migration of talent across state lines can be difficult to measure and often captured only on delay, such as through U.S. Census bureau figures.”

Aiming to solve this problem, LinkedIn aided the Illinois Innovation Index in tracking the migration of workers in and out of Illinois. The result, unfortunately, revealed that while Illinois attracts talent from across the Midwest and abroad, it ultimately loses much of that brainpower to other states

Tech talent inflow often comes from India, Indiana, Iowa, Kansas, and Ohio That same talent is later lost primarily to California, Colorado, Florida, Texas, and Washington “These migration patterns, paired with our earlier analysis of computer science degree production in Illinois, show a state that is exporting tech talent to industry hotbeds outside the state,” reports the Illinois Innovation Index

“Chicago, and the state, has a reputation as a talent exporter,” Bragg says For change to really come, he says, “It’s a matter of retaining those jobs as much as it is attracting them from other states ”

Population Growth

In other words, Illinois must continue growing high-tech and highly paid jobs, among other things, if it’s going stem the tide of talented residents exiting the state

Reporting by the Chicago Tribune in March states: “Illinois was among eight states to lose residents [in 2016], putting its population at 12,801,539 people, its lowest since about 2009. The state’s population first began to drop in 2014, when the state lost 11,961 people That number more than doubled in 2015, with a loss of 28,497 people, and further multiplied in 2016, according to census data.” Cook County actually suffered the largest outflows in the entire nation, reporting a total of 66,244 residents migrating to other parts of the U S from July 2015 to July 2016, according to U S Census Bureau data

In fact, most of Illinois is depopulating 93 of Illinois’ 102 counties are experiencing net out-migration, and 89 of Illinois’ 102 counties have shrinking populations A Paul Simon Public Policy Institute poll released in October 2016 found that taxes were the top reason people want to leave Illinois

Bill Bergman, director of research for the Chicago-based nonprofit Truth in Accounting, says Illinois’ tax burden “is a consequence of our long-term financial practices ”

“The state’s inability to fund retiree healthcare and pension benefits is putting pressure on elected officials to raise taxes or cut government services, and that’s driving people away,” Bergman explains “The out-migration of residents can lead to a ‘downward spiral’ because along with those residents goes much needed tax revenue, further exacerbating the problem ”

Fiscal Health

Truth in Accounting released in March its financial breakdown report, “Illinois Finances Continue to Crumble ” And, as you might

“Looking to the future, embracing the concept of a state driven by the tech and healthcare industries could create new, and more prosperous, paths for Illinois.”

have guessed, Illinois garnered the grade of “F” on its financial report card

“Repeated decisions by state officials have left the state with a staggering debt burden of $210.4 billion. … That burden equates to $50,400 for every Illinois taxpayer These statistics are troubling, but what’s more troubling is that state government officials continue to obscure large amounts of retirement debt on their balance sheets, despite new rules to increase financial transparency,” the report notes, revealing that, at the time of its writing, Illinois had a $138 billion unfunded pension liability and $44 5 billion in unfunded retiree healthcare costs hanging over its head

This financial stress has caused Illinois to lag behind other states in rebuilding budget reserves depleted during the 2008 financial crisis, says a September 2016 report from the Pew Charitable Trusts In 2015, Pew identified Illinois as having 10 6 days’ worth of reserves the amount of time the state could continue to operate without new revenue That dropped to less than a week in fiscal year 2016. Further failure to establish reserve funds could severely risk the state’s ability to “manage budgetary uncertainty, deal with revenue forecasting errors, prevent severe spending cuts and tax increases, and cope with unforeseen emergencies,” according to Pew

Housing Market

Of course, this all has an impact on housing Realtor com forecasts the Chicago area to have one of the slowest growing real estate markets in the country this year

Jonathan Smoke, chief economist for Realtor com, told Crain’s Chicago Business in December that their projection of a slow-growing market is tied to “relatively high unemployment” in the Windy City, paired with “low income growth and slow home price recovery.” Smoke told Crain’s that lagging prices “holds back inventory and limits the rate of turnover by existing owners ”

The good news is that both price and sales growth for the entire state have actually been tracking higher from the prior year during the first quarter of 2017, according to reports from Illinois Realtors, a statewide trade association.

“Our biggest issue is a lack of inventory,” says Illinois Realtors President Doug Carpenter, adding that the association is seeing more properties “getting multiple offers” as they come back on the market

“Consumers have no choice but to be nimble as they find fewer homes on the market and increased competition for those homes,” Carpenter said in April. “Many of the realtors I talk to are reporting an increase in multiple offer situations, which means buyers can’t dawdle when they find what they want and they may want to make sure any offer they bring is an aggressive one ”

Again forming a bright spot, Illinois’ burgeoning tech sector is predicted to have an impact on the real estate market as well. IT staffing services company Modis recently conducted a user survey to determine which big city housing markets were poised to be “transformed” by the tech industry Chicago landed at number one in the ranking.

Looking Ahead

Most pundits would agree that things are going to get worse in Illinois before they get better, but efforts in Springfield toward balancing the budget and reforming the state’s broken pension system could go a long way toward righting Illinois’ fiscal ship Don’t expect those reforms to come without new taxes and further budget cuts, but real reforms would send a sign to the business community that Illinois is open for business

Looking to the future, embracing the concept of a state driven by the tech and healthcare industries could create new, and more prosperous, paths for Illinois, luring back Midwesterners who’ve departed for greener pastures and hopefully attracting some new ones, too

HYPE IT

Sarah Herrmann Hype It Editor ICPAS Member Outreach

Adventures in an Open Office

The open-office concept is all the rage again I see more and more firms and companies making the move as I make site visits. Looking to inspire more collaboration and freshen up our office, the Illinois CPA Society staff workspace recently underwent renovations to achieve a more open-office look and feel, too

Call

At first, I was excited to find out about the coming renovation. Then, admittedly, I was unsure What would I do with all the giveaways and event materials crammed in my large filing cabinets? After six years in the same cubicle, it felt like home Would I like my new space and location? I had to take a tip from our Young Professionals’ Leadership Conference: Evolve I had to embrace flexibility

So, in preparation for the big move, I put on my game face, found a new place to stash my giveaways, cleared out a ton of old, unnecessary files, and discovered I have a tendency to hoard Post-It pads (but that’s a story for a different day).

Honestly, it’s been liberating to let go of so much clutter I also learned a few other things take note if an open-office is coming your way:

• Inside voices are always appreciated Whether you’re on the phone or chatting with a coworker, noise travels much further in an open office and it’s easier to be distracting or get distracted

• Smelly lunch food should stay in the staff lounge. I’m an eat-at-my-desk kind of girl, so I’ve been made more aware of the smells I’m introducing to the office sorry!

• Privacy is still precious. No walls or low cube walls might make it tempting to pop y o u r h e a d i n t o y o u r n e i g h b o r ’s

because it’s convenient is annoying. On the flip side, some conversations happen more naturally because of closer proximities I urge you to be sensitive to everyone’s space and need for privacy

Overall, having a funky, updated environment definitely makes me feel energized, and the newfound sunlight stretching into our office is refreshing, too The renovation has been a good lesson in embracing change.

INSIGHT Magazine is asking young professionals to share their insights and words of wisdom in an upcoming column that highlights next generation accounting and f inance pros making change in the profession Contact Derr ick Lilly, Assistant Director, Communications and Publications, at lillyd@icpas org to lear n how you can be featured and help inspire your peer s

capitolReport

THE LATEST ON LEGISLATION FROM MARTY GREEN, ESQ., ICPAS VP OF GOVERNMENT RELATIONS

{Read the latest issue of Capitol Dispatch www.icpas.org/CapitolDispatch}

Springing Into Action

As part of the Society’s ongoing advocacy efforts, the Governm e n t R e l a t i o n s O f f i c e w o r k e d w i t h m e m b e r s o f t h e G e n e r a l Assembly either to amend or oppose legislation that was adverse to the CPA profession and our business climate Without progress on resolving the ongoing budget dilemma, legislators turned their attention and focus to professional licensure, business regulation, and contingency fee audits, among other things

PROFESSIONAL LICENSURE

The Illinois CPA Society, in working with the Illinois Department of Financial and Professional Regulation (IDFPR), was successful i n p a s s i n g S e n a t e B i l l 8 9 9 , w h i c h a m e n d s t h e I l l i n o i s P u b l i c A c c o u n t i n g A c t . T h i s l e g i s l a t i o n a c c o m p l i s h e s f o u r t h i n g s : ( 1 ) e x t e n d s i n d i v i d u a l C PA m o b i l i t y t o C PA f i r m s ; ( 2 ) p r o v i d e s f o r Continuing Professional Education (CPE) reciprocity by exempting CPAs who hold multiple state licenses from having to meet each state’s CPE requirements so long as the licensee meets the CPE requirements of their home state; (3) makes a technical update to Section 16(e) of the Public Accounting Act to reflect professional practices and the Public Accounting Administrative Rules; and (4) creates a CPA Coordinator as a full-time in-house resource within the IDFPR This legislation is on its way to the governor for action

We’ll work with the governor ’s legislative staff and encourage the governor to sign SB 899 into law.

A second professional licensure bill awaiting the governor ’s signature is HB 2408, which amends IDFPR’s Law of Administrative Code to reflect the department’s migration to email as its delivery method of official notices to licensees and requires professional l i c e n s u r e a p p l i c a n t s a n d l i c e n s e e s t o m a i n t a i n a c t i v e e m a i l addresses with the department.

We also saw six bills introduced regarding treatment of felony convictions by licensing and regulatory agencies On first blush, the l e g i s l a t i v e s p o n s o r s ’ o r i g i n a l i n t e n t i n f i l i n g t h e s e b i l l s w a s t o enable past offenders to become productive citizens, pay taxes, and meet family obligations by obtaining and maintaining professional licensure for employment Working closely with the Illinois Realtors Association, legislative staffs, and other stakeholder advoc a c y g r o u p s , w e s u c c e s s f u l l y d o d g e d t h e m o r e s e v e r e b i l l t h a t would’ve prohibited the IDFPR from denying a CPA license based solely on a criminal conviction The better of the six bills passed don’t negatively impact the CPA profession, preserving the high standards and integrity of our profession A big part of this “victory” was our ability to emphasize the trusted and confidential roles CPAs play when handling confidential financial information of clients and when performing audit and forensic work.

BUSINESS REGULATION

On a different employment front, for the better part of a year now, e m p l o y m e n t a n d h u m a n r e g u l a t i o n s i s s u e s h a v e b e e n g a i n i n g widespread attention among the public and legislators alike. In Illin o i s , t w o b i l l s f o c u s e d o n e q u a l r i g h t s a n d d i s c r i m i n a t i o n advanced HB 2462, which will be presented to the governor, creates the Equal Pay Act to prohibit employers from screening job applicants based on wage history HB 3539, also awaiting the governor ’s review, requires bidders on state contracts to obtain equal pay certificates before purchasing agencies may issue them contracts SB 1502/HB 2774, which passed the Senate but failed in the House, aimed to create the Right to Know Act in effort to require operators of websites or online services that collect Illinois customers’ personally identifiable information to notify the customer and provide an email address and toll-free number for customers to request that information.

In my nine years with the Illinois CPA Society, by far this has been one of the busiest for legislative issues impacting both the CPA profession and the businesses it serves.

TAXING INVESTMENT MANAGEMENT SERVICES

As the state looks for new sources of revenue, investment services have been a target for years SB 1720 originally aimed to i m p o s e a 2 0 p e rc e n t p r i v i l e g e t a x o n investment management services, but the S e n a t e a m e n d e d t h e b i l l t o n a r r o w t h e application to “the fees calculated by reference to the performance of the investm e n t p o r t f o l i o f u n d s a n d n o t f r o m t h e investment itself ” The amendment also removed the enactment tie-in provision to other states passing similar legislation.

A mirror image of the original senate bill was introduced in the House (HB 3393) as a n i n i t i a t i v e o f t h e C h i c a g o Te a c h e r s Union to address perceived inequities with the carried interest provision in the Federal Tax Code We joined a coalition with the I l l i n o i s B a n k e r s A s s o c i a t i o n a n d Ve n t u r e Capital Association to oppose both bills

HB 3393 was successfully stopped, but SB 1 7 2 0 e m e rg e d a n d p a s s e d i n t h e S e n a t e a n d i s p e n d i n g c o n s i d e r a t i o n b y t h e House It’s expected that this concept may become a part of the House Democratic Revenue Proposal

CONTINGENT FEE AUDITS

HB 2717 is another sensitive piece of legi s l a t i o n t h a t w o u l d a u t h o r i z e t h e I l l i n o i s Department of Revenue to disclose confidential taxpayer information to an authori z e d i n d e p e n d e n t t h i r d - p a r t y v e n d o r i n relation to the Retailer ’s Occupation Tax A t t h e i n v i t a t i o n o f t h e H o u s e R e v e n u e Committee Chair, we testified in opposition of contingent fee audits before a Joint C o m m i t t e e o f t h e H o u s e R e v e n u e C o mm i t t e e a n d t h e H o u s e S u b c o m m i t t e e o n C i t i e s a n d Vi l l a g e s D u e t o o p p o s i t i o n from additional stakeholder organizations, this legislation was not called for a vote, but I suspect that this bill will ultimately be voted on in the House.

In similar fashion, State Treasurer Frerich’s l e g i s l a t i o n ( H B 2 6 0 3 ) t o r e v i s e t h e U n if o r m U n c l a i m e d P r o p e r t y A c t m e t s t i f f o p p o s i t i o n f r o m u s a n d o t h e r o rg a n i z ations and was not called for a vote The bill proposed the elimination of the businesst o - b u s i n e s s e x c e p t i o n f o r r e p o r t i n g r e q u i r e m e n t s a n d p r o v i s i o n s t h a t w o u l d e x p a n d c o n t i n g e n t f e e a u d i t s t o i n - s t a t e b u s i n e s s e s a n d e n t i t i e s . S t a k e h o l d e r g r o u p s a r e n o w w o r k i n g w i t h t h e Tr e asurer ’s staff on improving the legislation

As with any legislative session, we’ve had some victories and some losses. Throughout the Spring Session we supported and o p p o s e d b i l l s i n c o m m i t t e e , t e s t i f i e d i n support of bills that were favorable to the

CPA profession, and testified against bills t h a t w e r e n o t We j o i n e d c o a l i t i o n s t o actively work each member of the General Assembly to oppose bills, such as the 20 percent Gross Receipts Tax on investment m a n a g e m e n t s

As the budget gridlock continues we’re

e n t e r i n g t h r e e y e a r s w i t h o u t a s t a t e b u d g e t t h e s t a t e i s s i n k i n g i n t o d e e p e r debt and disrepair The ultimate solution w i l l b e r a i s i n g m o r e r e v e n u e f r o m m o r e sources. Your ICPAS Government Relations Office will continue to closely monitor revenue proposals and take action when necessary. As always, keep the lines of communications open and let us know if you have concerns on pending legislation

ETHICS ENGAGED

EXPLORING THE ROLE OF ETHICS IN BUSINESS & FINANCE TODAY

Moral Machines

The ethics of artificial intelligence.

Elizabeth Pittelkow

K P M G i s u s i n g M c L a r e n A p p l i e d Te c hnologies (MAT) and Watson Analytics, and D e l o i t t e i s u s i n g K i r a S y s t e m s f o r d o c ument review and data analytics EY is crea t i n g i t s o w n a r t i f i c i a l i n t e l l i g e n c e ( A I ) c e n t e r i n I n d i a w i t h t h e g o a l o f h e l p i n g c l i e n t s i n t e g r a t e t e c h n o l o g y m o r e i n t o t h e i r b u s i n e s s p r o c e s s e s . P w C r e c e n t l y issued “Bot Me: A Revolutionary Partners h i p , ” a n i n - d e p t h r e p o r t o n h o w A I i s p u s h i n g h u m a n s a n d m a c h i n e s c l o s e r together, and what impact this relationship

w i l l h a v e o n o u r f u t u r e l i k e t h e l i k e l ihood of AI assistants replacing humans for t a x p r e p a r a t i o n a n d f i n a n c i a l a d v i s o r y services.

In other words, automation tools and AI a r e c a t c h i n g t h e e y e s o f s o m e o f t h e b i g g e s t p l a y e r s i n t h e a c c o u n t i n g a n d f i n a n c e w o r l d s , w h i c h m e a n s w e w o u l d all be wise to take notice, especially when McKinsey & Company’s “Where Machines

C o u l d R e p l a c e H u m a n s a n d W h e r e They Can’t Yet” estimates 86% of the work d o n e b y b o o k k e e p e r s , a c c o u n t a n t s , a n d auditing clerks could potentially be automated

I n “ I m p r o v i n g E x p e r i e n c e d A u d i t o r s ’ D e t e c t i o n o f D e c e p t i o n i n C E O N a r r at i v e s , ” U n i v e r s i t y o f I l l i n o i s a t U r b a n a -

C h a m p a i g n a n d D u k e U n i v e r s i t y researchers found that experienced human auditors (71 percent accurate) are currently performing similarly to machines (69 percent accurate) for fraud-detection, but we may be overtaken soon However, while humans and machines both now have the ability to learn, humans may also experience more objectivity issues that prevent them from detecting fraud, like maintaining long-term relationships with clients and fearing the implications of being wrong.

What impact will our increasing interaction with advanced technologies have on o u r e t h i c s , a n d w h a t i m p l i c a t i o n s d o e s technology have on our professional interactions?

We have been (mostly) comfortable with our computers up to this point because we t r u s t t h e d e v e l o p e r s t o e n s u r e t h e h a r dware and software we use does what they say it will Thanks to these hardware and software products, our accounting is more e f f i c i e n t . C l i e n t s c a n u s e f i n a n c i a l s t a t ement and tax preparation software in their businesses to help automate some of our w o r k , a n d w e c a n s p e n d m o r e t i m e o n value-add activities, evaluating data, making decisions, and recommending strategies Time for non-traditional accounting a c t i v i t i e s h a s e v e n f u e l e d t h e t r e n d o f CFOs building the skills needed to move from CFO to CEO, like at PepsiCo, Crate & Barrel, Siemens, and Hartford Financial, to name a few

The technology tools of our future, however, will not only process data, but also make decisions on the data As machines d e v e l o p m o r e c o g n i t i v e a n d d e c i s i o nmaking skills, we must concern ourselves with how AI acts toward humans, which f o r m s t h e c o n c e p t o f m a c h i n e e t h i c s o r moral machines.

A c c o r d i n g t o J a m e s H M o o r, D a n i e l P Stone Professor in Intellectual and Moral Philosophy at Dartmouth College, we are a l r e a d y f a c i n g f o u r t y p e s o f m a c h i n e s when it comes to ethical influences:

• Ethical Impact Agents are machines that c a r r y a n i m p a c t w h e t h e r i n t e n d e d o r not; for example, a clock may influence us to be on time, which may or may not be the intent of the clock.

CPA, CITP, CGMA, DTM Director, Accounting & Compliance ArrowStream, Inc

• I m p l i c i t E t h i c a l A g e n t s a r e m a c h i n e s designed to avoid unethical and negative outcomes; usually they are built for security or safety, like your car alerting you when the fuel is low

• E x p l i c i t E t h i c a l A g e n t s a r e m a c h i n e s programmed with algorithms to act ethi c a l l y, l i k e a d r o n e p r o g r a m m e d t o destroy an empty military vehicle while avoiding nearby humans.

• F u l l E t h i c a l A g e n t s a r e m a c h i n e s t h a t have free will, thinking ability, and consciousness to make independent ethical decisions like humans. In other words, the machine makes moral decisions and c a n u n d e r s t a n d w h y i t m a k e s t h e s e decisions

Decades ago, professor and acclaimed science-fiction writer Isaac Asimov presented his Three Laws of Robotics as an idea for a machine moral code:

1 A robot may not injure a human being o r, t h r o u g h i n a c t i o n , a l l o w a h u m a n being to come to harm

2. A robot must obey the orders given it b y h u m a n b e i n g s e x c e p t w h e r e s u c h orders would conflict with the First Law

3. A robot must protect its own existence as long as protection does not conflict with the First or Second Laws

However, Asimov tested his own laws and found them unsuitable for an effective AI moral code because there is not a set of fixed laws that can anticipate all possible situations

A second idea for a moral code that has tested closer to effectiveness (still not perf e c t ) i s K a n t ’s C a t e g o r i c a l I m p e r a t i v e , w h i c h s a y s , “ A c t o n l y a c c o r d i n g t o t h a t maxim whereby you can, at the same time, will that it should become a universal law.”

A third idea is for machines to learn casuistry and ethics through observing human interactions on the internet, but some have a l r e a d y d e m o n s t r a t e d n e g a t i v e h u m a n behaviors like biases and discrimination.

An idea for AI used in accounting is to program our profession’s Code of Professional Conduct into the machines. How would we need to modify it for interactions that involve AI?

Much debate has already gone into determining if machines can have a common e t h i c a l c o d e , a n d m u c h m o r e d e b a t e i s still to come If you want to weigh in on the debate, MIT has launched the Moral M a c h i n e , a w e b p l a t f o r m f o r g a t h e r i n g h u m a n p e r s p e c t i v e s o n m o r a l d e c i s i o n s made by today’s machine intelligence.

As humans, we do not always make perfect ethical decisions Can we expect machines to live up to an impossible standard?

A Good Day for Doing Good

Be part of the Illinois CPA Society’s 8th annual CPA Day of Service.

It’s as easy as 1-2-3: Choose a community organization or charity to help.

Register your volunteer activity plans at www.icpas.org/CPADayofService

Receive a free CPA Day of Service t-shirt (while supplies last, free to ICPAS members).

Volunteer as an individual or get a group together and volunteer as a team!

Questions? Please contact Basia Boksa at boksab@icpas.org or 800.993.0407, x7648.

CPAs for the Public Interest (CPAsPI), the community service arm of the Illinois CPA Society, links the expertise of CPAs and finance professionals with Illinois not-for-profit organizations and community needs.

Keith Staats, JD Executive Director Illinois Chamber Tax Institute

Dormant bank accounts, uncashed checks, unused balances on gift cards, the contents of abandoned safe deposit boxes, and stocks and other securities These are all common examples of unclaimed property Their uniting thread is what happens to each type of property when the holder is unable to locate the property owner after diligent efforts namely, attempting to communicate with owners at their last known addresses and trying to locate property owners prior to turning the property over to the state treasurer

You see, abandoned (unclaimed) property is tangible and intangible property owned by someone, but held in the custody of another, and Illinois law requires it all to be reported and turned over to the Illinois treasurer

Under the Illinois Uniform Disposition of Unclaimed Property Act, the governing Illinois law, the state treasurer takes custody of unclaimed property and makes further attempts to locate the rightful property owner.

The law also establishes abandonment periods Typically, the general period of abandonment is five years However, some types of property have longer or shorter abandon-

The Law of the Land

ment periods For example, unclaimed wages, payroll, or salary have a one-year period of abandonment, while travelers’ checks assuming anyone still uses them have a 15-year abandonment period

While unclaimed property laws are not tax laws, tax departments at many organizations take on responsibility for unclaimed property recordkeeping and reporting It’s also worth noting that local governments are not exempt from unclaimed property reporting requirements CPA advisors to businesses and local governments need to be especially aware of these requirements, because a failure to properly document and report unclaimed property can raise significant liabilities

Unclaimed property reporting has become an increasingly important topic because the state treasurer has proposed legislation that could make significant changes to current unclaimed property reporting requirements in Illinois. To little surprise, some of the proposed changes have generated concern within the business and practitioner community As I write this column, bill HB 2603 has not moved forward, but representatives of the treasurer have advised that they wish to move forward, either in HB 2603 or another bill

HB 2603 proposes eliminating the current business-to-business exemption from unclaimed property reporting Many years ago, the Illinois General Assembly recognized that businesses dealing at armslength don’t usually end up with unclaimed property and enacted the exemption This exemption has worked well over the years and has allowed the treasurer to avoid the types of disputes the business community

and unclaimed property custodians have become embroiled in around the country HB 2603 also aims to shorten the presumptive abandonment period for certain types of property to three years, creating more and more frequent reporting burdens An additional reporting burden would come by way of HB 2603’s intention to modify the treatment of gift cards and gift certificates, even though there’s no indication that current reporting requirements are inadequate or ineffective

Statutes of Limitation – Section 23.5 of the current law provides that the treasurer has five years after a report has been filed in which to issue a notice of deficiency. Section 610(b) of HB 2603 expands that limitations period to 10 years, which seems excessive in our view

The proposed legislation also would authorize the treasurer to contract with third-party contingent fee auditors to conduct audits of Illinois-based businesses on behalf of the treasurer, which is currently forbidden. Current law recognizes resource limitations of the treasurer by authorizing the hiring of such auditors to conduct outof-state audits. In my estimation, any fears of a possible constitutional infirmity created by disparate treatment of in-state and outof-state audits is misplaced.

Unclaimed property reporting is an area that’s sometimes overlooked by businesses and governments, but a failure to fulfill reporting requirements can result in significant liabilities In other words, get to know our state’s unclaimed property laws and reporting requirements now and stay abreast of what’s to come.

As a business advisor, CPAs must know state unclaimed property laws and requirements

LIFETIME ACHIEVEMENT AWARD

Mary Ann Webb, CPA Managing Partner, Sulaski & Webb CPAs

OUTSTANDING EDUCATOR AWARDS

Julia P. Shapland, CPA, MS Lecturer of Accountancy, University of Illinois at Urbana-Champaign

Gregory P. Tapis, PhD, CPA Assistant Professor, Augustana College

Everett Westmeyer, CPA, CGMA Accounting Faculty, Kishwaukee College

YOUNG PROFESSIONAL LEADERSHIP AWARD

Timm Bellazzini, CPA, CGMA Partner, Sikich LLP

TIME AND TALENT PUBLIC SERVICE VOLUNTEERISM AWARD

Wipfli LLP

LESTER H. MCKEEVER

JR. EMERGING LEADER IN ADVANCING DIVERSITY AWARD

Marques Fisher, CPA Manager, PwC LLP

LESTER H. MCKEEVER

JR. OUTSTANDING LEADER IN ADVANCING DIVERSITY AWARD

Stella Marie B. Santos, CPA Managing Partner, Adelfia LLC

The Illinois CPA Society is proud to recognize all of our 2017 award winners and congratulate them on their accomplishments.

DISTINGUISHED SERVICE AWARDS

Linda S. Abernethy, CPA

RSM US LLP

Governmental Executive Committee

Jeff T. Conrad, CPA, JD BKD, LLP

Taxation Estate Gift & Trust Committee

Lindy R. Ellis, CPA

Ernst & Young LLP

Women’s Executive Committee

Karen M. Fleming, CPA BKD, LLP

Taxation Estate Gift & Trust Committee

Carla A. Garza, CPA HERE

Women’s Connections Committee

Jody A. Gauthier, CPA BKD, LLP Not-for-Profit Organizations Committee

Robert J. Giblichman, CPA Warady & Davis LLP

Peer Review Acceptance Committee

Paige Goepfert, CPA, MST, CSEP RSM US LLP

Taxation Estate Gift & Trust Committee

Amy S. Jenkins, CPA Sikich LLP

Governmental Report Review Committee

Deanna M. Kanosky, CPA HERE

Women’s Connections Committee

Andrew D. Klemens, CPA, MST, MSA BKD, LLP

Taxation Flow-through Entities Committee

David J. Kupiec, CPA, JD

Kupiec & Martin, LLC

Taxation State & Local Committee

Edward T. McCormick, CPA

MPS | CPA

Governmental Executive Committee

Kathleen A. Musial, CPA

Wipfli LLP

Employee Benefits Committee

Cynthia A. Quigley, CPA

Accenture PLC

Chicago South Chapter

Carla J. Randolph, CPA, MBA, CISA

CJ Randolph CPA LLC

Governmental Report Review Committee

Deborah J. Ringer, CPA, CGFM

Kerber, Eck & Braeckel LLP

Governmental Executive Committee

James R. Savio, CPA, MAS

Sikich LLP

Governmental Executive Committee

William G. Schmidt, CPA, MBA

Skokie Park District

Governmental Executive Committee

Keith W. Staats, JD

Illinois Chamber of Commerce

Tax Institute

Taxation State & Local Committee

Madhuri Thaker, CPA

Plante Moran, PLLC

Taxation International Committee

Rose Cammarata

CPA, CGMA

VP & Controller, Mattersight ICPAS Board of Directors

Overcoming Criticism

The way you react to constructive and unconstructive criticism speaks volumes about who you are, personally and professionally.

In my spring column, I stressed the importance of getting constructive feedback duri n g y o u r p e r f o r m a n c e r e v i e w f e e d b a c k that’s actionable and gives you the opportunity to add value to the company and to your career. Sometimes, though, construct i v e f e e d b a c k i s n ’t a l l t h a t c o n s t r u c t i v e . S o m e t i m e s i t i s n ’t a c t i o n a b l e o r p r o d u ctive Sometimes it’s just criticism

It would be great if you never encountered this, but at some point in your career you may be on the receiving end of negative criticism that leaves you without any idea h o w t o r e s p o n d I t m i g h t c o m e f r o m a m a n a g e r, a p e e r, o r a d i r e c t r e p o r t , b u t regardless of who it comes from, it’s likely to leave you feeling uncomfortable, putting it mildly This is a really tough situation to be in

Yes, you can pretend you never heard it a n d h o p e t h e s i t u a t i o n “ r e s o l v e s ” i t s e l f , but, ultimately, you need to move past it in a h e a l t h y w a y t h a t d o e s n ’t h i n d e r y o u r future career prospects

So what can you do?

FOCUS ON THE FUTURE

I won’t tell you that the criticism isn’t pers o n a l I t w i l l f e e l v e r y p e r s o n a l a n d y o u m a y i m m e d i a t e l y f i n d y o u r s e l f o n t h e defensive That said, it’s best not to react in the moment I know that’s easier said than done, but the way you react speaks volu m e s a b o u t y o u a n d h o w y o u m a n a g e conflict. Pause; listen with intent to understand, and focus on the long-term impact of any reaction you may have.

DIG INTO THE DETAILS

A well-respected mentor once shared with m e h i s p h i l o s o p h y o n c r i t i c i s m : “ P r a i s e doesn’t need details, but criticism is all in t h e d e t a i l s ” G e n e r a l i z e d c r i t i c i s m l i k e , “You do not communicate well,” is of little value on its own If details are lacking, you have the right to ask for an example of a situation that prompted the criticism Try to g a t h e r e n o u g h d e t a i l s t o u n d e r s t a n d t h e motivation behind the criticism and also to d e t e r m i n e t h e a c t i o n y o u c a n t a k e t o address it.

REMAIN AUTHENTIC

It’s natural to want to avoid conflicts and quickly resolve any that do arise, particularly in the workplace, but it won’t serve you well in the long-run if your response i s n ’t a u t h e n t i c A c o l l e a g u e o n c e s h a r e d that her personality had been described as “nice,” implying that she couldn’t execute the tough decisions required by her role S h e d i d n ’t r e s p o n d b y b e i n g l e s s n i c e , instead she excelled in her role by making whatever decisions were necessary to succ e e d T h e r e a r e j u s t s o m e t h i n g s t h a t shouldn’t be changed

T h e r e a l s o a r e s o m e t h i n g s t h a t s i m p l y can’t be changed. In the category of “It’s not you, it’s me,” sometimes it really is the p r o v e r b i a l “ Yo u ” T h e r e m a y b e t i m e s w h e n y o u c o n c l u d e t h a t t h e r e ’s n o t h i n g you can do to address your criticisms You h a v e t o b e w i l l i n g t o a c c e p t t h a t s o m etimes it just doesn’t work out, and that’s all right All you can ever really do is try to be the best version of you.

CLASSIFIEDS

ADVERTISE TODAY

Hoping to reach 24,000 leading accounting and finance and business professionals in Illinois? ICPAS Members receive a 50% discount on INSIGHT Magazine display ads

Contact Mike Walker at mike@r wwcompany.com

VALUATION OF YOUR CLIENT’S BUSINESS OR PRACTICE

By: Crandall & Brackett, Ltd. 630.653.7922

Email: robert@crandall-brackett com | Web: www crandall-brackett com

Our only service is performed on your behalf in a mutual engagement setting From basic research to a full valuation, we tailor our services to your needs We author, teach and participate on policy setting committees and boards within the valuation profession

BUY OR SELL AN ILLINOIS ACCOUNTING OR TAX PRACTICE

ILLINOIS PRACTICES FOR SALE: Gross revenues shown

Bloomingdale CPA $570K; Northern Suburb of Chicago EA $82K; Northern Chicago Suburb $418K; Schaumburg CPA $392K; Mokena/Orland Park Area CPA $120K; Chicago North Shore CPA $242K; Oak Brook/Downers Grove/Hinsdale Area $447K; Southern IL CPA $1 4M; W/SW Chicago Suburb CPA $369K; Rockford Area $670K; Macoupin Co CPA $300K; E Central IL CPA $275K; NW Illinois EA $380K

For practice details call 1-800-397-0249 Or, visit us at www.APS.net to inquire about available opportunities and register for free email updates

THINKING OF SELLING YOUR PRACTICE?

Accounting Practice Sales is the leading marketer of accounting and tax practices in North America We have a large pool of buyers, both individuals and firms, looking for practices now We also have the experience to help you find the right fit for your firm, negotiate the best price and terms and get the deal done

To learn about our risk-free and confidential services, call Trent Holmes at 1-800-397-0249 or email Trent@APS net

TECH PULSE

26% - productivity increase when smartphones are taken away.

[Kaspersky Lab]

Is Your Smartphone Hurting Your Career?

“Staying connected” is just what we do. We simply can’t live without our smartphones and other mobile devices In fact, Pew Research Center data suggests more Americans than ever own smartphones (77 percent) and tablets (51 percent) But what happens when these productivity tools, now standard-issue for most accounting and finance pros, actually get in the way of productivity and, ultimately, our careers?

As it turns out, our gravitation towards technology is actually damaging our in-person interactions not exactly good news for client-facing professionals

“Mobile phones hold symbolic meaning In their presence, people have the constant urge to seek out information, check for communication, and direct their thoughts to other people and worlds,” writes Shalini Misra of Virginia Tech University, part of the team behind the study, “The iPhone Effect: The Quality of In-Person Social Interactions in the Presence of Mobile Devices ”

“Even without active use, the presence of mobile technologies has the potential to divert individuals from face-to-face exchanges, thereby undermining the character and depth of these connections,” she continues The study further revealed that conversations in the presence of mobile devices even among people with close relationships were less fulfilling, less friendly, and less empathetic

What’s more, “Technology, particularly communication technology, is the number one distraction [at work] in almost all studies,” says Larry Rosen, psychologist and co-author of “The Distracted Mind: Ancient Brains in a High-Tech World,” in an interview with MarketWatch. “We know that people check in every 15 minutes or less and, as soon as they check in it will take upwards of 20 minutes to return to the task they were working on. ”

So, what to do?

For starters, if you want to have a real, engaging face-to-face conversation with a client, colleague, friend actually, anyone try turning off your smartphone, putting it in your bag or pocket, or leaving it well out of reach

For those of us that simply can’t live in a digital-free zone for more than a few minutes, Rosen suggests at least taking a break every 90 minutes “Technology is inundating all of our sensory levels and our brains become tired,” he says “What you want to do is to take a break to calm your brain activity ”

2017 | Illinois CPA Society

The velocity of change in the accounting profession has never been greater. Join Lisa Hartkopf, CPA, Chair of the ICPAS Board of Directors and Todd Shapiro, ICPAS President & CEO, for an engaging conversation on how we can thrive in a world of disruption.

Town Hall Forums are a great opportunity for you to interact with the Society's leadership and your peers as you discuss the powerful issues facing the profession.

all programs:

CPE: 1.5 Credit Hours Cost: FREE Complimentary breakfast or lunch included.

Springfield

September 25, 2017 Code: C42624

11:30AM - Networking and Lunch

12:00PM - 1:15PM - Program and Q&A

Inn 835

835 South Second Street, Springfield, IL

Champaign-Urbana

September 26, 2017 Code: C42625

7:45AM - Networking and Breakfast

8:15AM - 9:30AM - Program and Q&A

Hyatt Place

217 N. Neil Street, Champaign, IL

Bloomington-Normal

October 2, 2017 Code: C42626

11:30AM - Networking and Lunch

12:00PM - 1:15PM - Program and Q&A

Double Tree Hotel

10 Brickyard Drive, Bloomington, IL

East Peoria

October 3, 2017 Code: C42627

7:45AM - Networking and Breakfast

8:15AM - 9:30AM - Program and Q&A

Holiday Inn & Suites East Peoria

101 Holiday Street, East Peoria, IL

Rockford

November 27, 2017 Code: C42628

11:30AM - Networking and Lunch

12:00PM - 1:15PM - Program and Q&A

Radisson Hotel and Conference Center Rockford

200 S. Bell School Road, Rockford, IL

Collinsville

December 1, 2017 Code: C42629

7:45AM - Networking and Breakfast

8:15AM - 9:30AM - Program and Q&A

Double Tree Hotel

1000 Eastport Drive, Collinsville, IL

Oakbrook Terrace

December 5, 2017 Code: C42630

7:45AM - Networking and Breakfast

8:15AM - 9:30AM - Program and Q&A

Drury Lane Theatre and Conference Center

100 Drury Lane, Oakbrook Terrace, IL

Glenview

January 17, 2018 Code: C42631

7:45AM - Networking and Breakfast

8:15AM - 9:30AM - Program and Q&A

Delta by Marriott

1400 N. Milwaukee Ave., Glenview, IL

Chicago

January 18, 2018 Code: C42632

7:45AM - Networking and Breakfast

8:15AM - 9:30AM - Program and Q&A

REGISTRATION

Please call 800.993.0407 or visit www.icpas.org.

The Crowne Plaza Chicago Metro

733 West Madison, Chicago, IL

The key to more profitable payroll: Full automation.

With the Payroll Relief solu on, you don’t have to worry about doing direct deposit, paying payroll taxes or child support, or filing payroll tax returns. Payroll Relief handles all of that automa cally, on me, and with 100% accuracy - guaranteed You can even eliminate data entry and the need to print checks in your office.

The result: a more profitable, no-hassle payroll service. And unlike tax and accoun ng, payroll processing requires virtually no professional me

Last but not least, you get all this power for a very modest investment as li le as 45¢ per paycheck

Our payroll processing me has been reduced by 75%.

Zahid Rupani, CPA

6 5 % of our customers have seen at least a 25% improvement in their payroll prac ce.

5