MACPA Statement // Fall 2021

STATEMENT MACPA’S

FA L L 2 0 2 1

Learning from

Black CPA

career role models A century after John W. Cromwell Jr. became the nation’s first Black CPA, Black role models continue to open doors in the profession. Page 6

ALSO INSIDE Maryland Association of Certified Public Accountants, Inc.

Profession's year-long celebration of pioneering Black CPAs continues

Finance transformation: How exactly do you start?

How to prospect to your niche

Page 11

Page 25

Page 30

ACCOUNTING IS IN OUR DNA We read your publications. Go to your events. Some of our risk advisors are CPAs themselves. We know the challenges inherent in your professional practice, and our risk advisors can help you with: • Succession Planning • Mergers & Acquisitions • Cyber Threats

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CONTENTS Fall 2021 | Maryland Association of Certified Public Accountants, Inc.

CHAIR’S COLUMN.............................................................................. 3 FEATURES

Learning from Black CPA career role models........................................................ 6

Profession's year-long celebration of pioneering Black CPAs continues............ 11

DEPARTMENTS

News and Views................................................................................................... 14 Business and Industry.......................................................................................... 25 Public Practice...................................................................................................... 30 High-Tech Solutions............................................................................................. 33 From Our Partners............................................................................................... 38

MEMBER NOTES................................................................................ 45 CLASSIFIEDS........................................................................................... 46 MEMBER SERVICES Lauren Baker Sydney Glen PEER REVIEW

2021–2022 BOARD OF DIRECTORS Lexy Kessler, CPA Chair

Cora Edwards

Herbert J. Geary III, CPA, CGMA Vice Chair

E-LEARNING

Christine Aspell, CPA Secretary/Treasurer

Emily Trott SEMINARS/CONFERENCES

Avonette Blanding, CPA Immediate Past Chair

Dee Sullivan

Maxene M. Bardwell, CPA, CIGA, CIA, CFE, CISA, CITP, CRMA

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SENIOR STAFF Jackie Brown CEO Skip Falatko, CPA CFO Bill Sheridan, CAE CCO Rebekah Brown, CPA Director of Development Mary Beth Halpern Director Technical Services/ Regulatory Affairs Dee Sullivan Director of Learning

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Bill Sheridan | MACPA Dulaney Center II 901 Dulaney Valley Road Suite 800 Towson, MD 21204 FOR CONTENT SUBMISSION: bill@macpa.org feedback@macpa.org TO ADVERTISE IN THE STATEMENT: krislyn@macpa.org P: 410.296.6250 F: 410.296.8713 Toll free: 800.782.2036 The MACPA reserves the right to edit all submissions for grammatical style and / or length. Statement of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers or members of MACPA. The Statement is published four times a year by the Maryland Association of Certified Public Accountants, Inc. Bill Sheridan, Editor Krislyn Suljak, Advertising Sales

FALL 2021

STATEMENT

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FALL 2021

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CHAIR’S COLUMN Building a Foundation for the future of our profession BY LEXY KESSLER, CPA / PARTNER, ARONSON LLC

We’ve been using the #MarylandCPAProud hashtag in MACPA social posts for years now, but rarely have we been as proud of Maryland’s CPAs as we are today. Flip through the pages of this magazine and you’ll see why. It’s filled with news about the extraordinary accomplishments of some of our profession’s best and brightest members. On page 15, you’ll read about the 16 newest graduates of the MACPA’s annual Leadership Academy, a three-day crash course on leading yourself, leading others, and leading organizations. The 2021 class was a diverse gathering of young professionals from every corner of the profession — and even one who isn’t a CPA at all. His mentor is a previous Leadership Academy graduate who didn’t want him to miss out on the opportunity to learn some valuable new skills. On page 18, you’ll find details about Maryland’s “Women To Watch” for 2021. Three winners were selected in each of the “Emerging Leaders” and “Experienced Leaders” categories, and they were honored during an in-person gala held on Sept. 24 in Hanover, Md. The event, which was also simulcast to a virtual audience, was one of the first large-scale MACPA events to be held in-person since the pandemic struck in early 2020, and it was a joy to gather with our fellow CPAs and pay tribute to these six amazing leaders. And on page 12, you’ll find more about the six Maryland CPAs who have been included among the "40 Under 40 Black CPAs" in America, a list announced on Sept. 16 by the organizing partners of the Black CPA Centennial. You didn’t misread that. Fully 15 percent of the nation’s "40 Under 40 Black CPAs" are from Maryland. In a year in which we are celebrating the 100th anniversary of John W. Cromwell Jr. becoming the first Black CPA in the United States, that makes us doubly proud. These three tributes — Leadership Academy, Women to Watch, and the 40 Under 40 Black CPAs — serve as proof that the future of our profession in Maryland has never been brighter. We are filling our pipeline with experienced, talented, and forward-looking young leaders who are eager to make a difference. We are proud of each of them and offer them our best wishes as they continue their professional journeys. They also point to the importance of the work being done by groups like the MACPA Foundation, whose mission is to help build Maryland’s section of the CPA talent pipeline in an effort to secure a bright future for our profession. The Foundation’s work includes:

• Supporting initiatives that help build diversity, equity, and inclusion in the profession. • Providing critical training for future leaders. • Granting scholarships for next-generation CPAs. • Facilitating mentorship connections that increase growth, engagement, and retention. Given the continuing struggle among firms and organizations to recruit, reskill, and retain talented CPAs, the Foundation’s work is more important than ever. In the 2021 edition of its annual CPA Firm Top Issues Survey, the AICPA’s Private Companies Practice Section found that issues related to talent are among the top concerns for nearly every firm in the country. Those concerns include: • Recruiting and retaining staff. • Training next-generation leaders. • Succession planning. • Keeping up with changing skill sets. • Issues related to culture, including diversity, equity and inclusion, leading teams in remote / hybrid work environments, protecting employees’ mental health, and other people issues that have arisen out of the pandemic. These concerns point to the critical nature of the MACPA Foundation’s work. As that work continues, you can expect to see more of Maryland’s best and brightest young CPAs honored for the career paths they are paving. The more they learn and grow, the stronger our profession becomes. You can lend a hand in that effort as well. The Foundation depends on donations from MACPA members to fund scholarships, provide training, and supply firms and organizations with the resources and insights they need to become future-ready. I’ll hope you’ll join us in building a better profession by donating to the MACPA Foundation today. For details on how you and your organization can get involved, visit MACPA.org/Foundation. As the honorees from Leadership Academy, Women To Watch, and the Black CPA Centennial can attest, we are building some serious momentum for the future of our profession. The MACPA and its Foundation are committed to seeing that momentum grow even further.

• Offering resources for future CPAs and educators. FALL 2021

LEARNING FROM

Black CPA career role models A century after John W. Cromwell Jr. became the nation’s first Black CPA, Black role models continue to open doors in the profession. Editor’s note: The following article originally appeared on July 26 on the Journal of Accountancy’s website. It is reprinted with permission.

BY A N ITA DENNIS A century has passed since John W. Cromwell Jr. became the nation’s first Black CPA. During that time, he and other trailblazers, such as Mary T. Washington Wylie and Elmer J. Whiting Jr., opened new doors for Black people in the profession. This article looks at a few of the Black CPAs who are continuing to break down barriers and offer advice to young professionals, as well as suggestions for strengthening the pipeline of Black CPAs. BECOMING A CPA Exposure to the profession and all it has to offer is a significant factor in whether a young person becomes a CPA. Here’s how it worked for one group of successful CPAs.

STATEMENT

Kimberly Ellison-Taylor, CPA, CGMA — founder and CEO, KET Solutions LLC. During a career discussion in her thirdgrade classroom, Ellison-Taylor learned that an accountant was someone who “managed the money.” She decided that accounting was the career for her and went on to take accounting in high school. Her college did not offer accounting as a major, so after getting degrees in information systems management and an MBA, she attended community college at night to take the courses she needed to be eligible for the CPA credential. Now the head of her own consulting firm, Ellison-Taylor has worked in global leadership roles at Oracle and was the first Black person to be the chair of the AICPA and the Association of International Certified Professional Accountants, and also the first Black woman to be the chair of the Maryland Association of CPAs. Steven Harris, CPA, CGMA — partner-in-charge, RubinBrown's Entrepreneurial Services Group and a partner in its Assurance Services Group. Harris started out studying engineering, but a foundational college accounting course piqued his interest. His father ran his own drapery installation business, and seeing the good and bad advice that he received along the way helped Harris appreciate the value of a knowledgeable business adviser. An internship at RubinBrown LLP while he was in college “made it real,” he said. “I began to love the profession.” Dorri McWhorter, CPA / CITP — incoming president and CEO, YMCA of Metropolitan Chicago. “I was always good at math, but I hadn’t associated it with a career,” McWhorter said, until she read a book about successful accountants when she was in the seventh grade. She studied bookkeeping in high school and got an internship at a local corporation’s accounting department. “I loved school, and hearing about these opportunities allowed me to focus my energy,” McWhorter said. She went on to become the first Black partner at what is now Crowe LLP, the CEO of the YWCA of Metropolitan Chicago, and the first Black person and first woman in her upcoming role at the YMCA. She was also the first Black chair of the Illinois CPA Society. JOINING THE PROFESSION What advice do these role models have for potential Black CPAs? Reach out to other Black professionals. Harris, a former chair of the National Association of Black Accountants, said that organization gave him a sense of belonging when he started out, while a local networking group for young minority professionals introduced him to people from all backgrounds. “I was able to grow and learn with people who looked like me,” he said. In addition, a diverse group of mentors — what he calls a personal board of advisers — is valuable because it can offer different perspectives, “but you need one mentor who can relate to what you’re facing” as a minority, he said. FALL 2021

Start networking early. “Surround yourself with people who have similar goals because they will energize you,” Ellison-Taylor said. She suggested having vision sessions with other young professionals to chart your path forward. When it comes to career planning, “you can’t take it for granted,” she said. She also recommended sharing your goals with a mentor or coach so they can help you achieve them. “Remember that networking is powerful and to celebrate your achievements along the way,” she advised. “Also, we can’t forget about those amazing leaders who paved the way for us as Black CPAs. Acknowledging that we are standing on the shoulders of giants is non-negotiable.” Be relentless in seeking feedback. It can help you see your blind spots and address them, Harris said. It’s also critical to recognize the value of a sponsor. “Understand that many important decisions about your career will be made when you’re not in the room, so consider who will advocate for you in those situations,” he said. Recognize that there’s more than one way to be a CPA. “There are so many different aspects to the profession,” McWhorter said. She has spent much of her career using her skills in corporations and management consulting. “If you understand the business drivers, you can apply them to any business,” she said. While at the YWCA, she led an effort to create an exchange traded fund that invests in companies that advance women’s empowerment and gender equality. The fund donates its asset management fees to the YWCA. “We need to use every lever available in the marketplace to create change,” she said. PROMOTING INCLUSION As these CPAs’ stories demonstrate, career decisions can often be made very early based on what may be a random introduction to the profession. Opening the door for more Black CPAs may require a more intentional effort to include them, since they are less likely to be introduced to an accounting career through family and community due to the low percentage of Black CPAs in the profession. CONTINUED ON PAGE 8

CONTINUED FROM PAGE 7

“One disadvantage in recruiting is that accountants are behindthe-scenes heroes,” Harris said. “It will take a collaborative effort among firms, professional organizations, and colleges to get potential Black CPAs more exposure to the profession at an early age.” “The making of a Black CPA is not done in one step,” Ellison-Taylor said. “There are multiple people, steps, and factors involved.” Looking back on her own journey to AICPA chair, she traced its beginnings to having a vision; plenty of mentors, coaches, and sponsors; getting into college; pursuing her CPA; becoming a volunteer and then senior leader in her state society; becoming the chair of the Maryland State Society and serving on the AICPA’s council; serving on the Horizon 2025 project and the Business and Industry Executive Committee; being selected for the AICPA board of directors and being successfully nominated for AICPA vice chair and then on to chair. This is just one path. Studying the many paths and barriers to success can help to identify the best ways to introduce Black students to the profession and to support them on their journey, she said.

get the second and third, and on and on until you can stop counting.” The Black CPA Centennial is a yearlong effort to honor, celebrate, and build upon the progress Black CPAs have made in shaping the accounting profession. The celebration is a collaborative effort of the AICPA, Diverse Organization of Firms, Illinois CPA Society, National Association of Black Accountants, and National Society of Black CPAs. Anita Dennis is a freelance writer based in New Jersey. To comment on this article, contact Ellen Goldstein, the Association’s director of communications and special projects, at Ellen.Goldstein@aicpacima.com.

“We have to open those doors so we can be at the table and participate,” McWhorter said. “If you are the first, the goal is then to

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Our NEW Town Hall experience is bringing monthly, virtual updates on the issues affecting your role and your membership. Each individual event is unique, exploring a different professional trend or issue per month – attend as many or as few events as desired! However, we invite you to attend as many as you can to gain invaluable insight into a wide variety of timely issues. For us, it’ll always be about helping you “navigate the now; anticipate the future” – Let’s continue forward, together.

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Complimentary CPE for MACPA members STATEMENT

BUSINESS AND INDUSTRY CONTINUED FROM PAGE 26

Let me share a more concrete example of what didn’t work from a transformation project. I started a project with engagement sessions with the finance team. I tried to create a sense of urgency by sharing a vision for the finance department and where the business wanted the F&A to go. I used some best-performing companies and competitors as examples and hoped that the team would see the vision and the future we should be aiming for. However, key F&A managers pointed out

the company shortly after I joined the organization. I had done my homework beforehand and prepared short points to share. My ideas resonated in his mind and an executive committee meeting was called shortly after, and I sat in to present my idea. A steering committee was swiftly set up to drive the finance transformation, and I was appointed as the project manager. The powerful key stakeholders were also on the steering committee to give direction and support.

Building relationships with internal customers and gaining their trust is crucial in getting buy-in for any transformation. that the function was too busy with routine work, that business partnering was not the culture of the organization, and that the finance team did not know enough about the other functional areas to give strategy recommendations. That was when I realized that implementing finance business partnering is a change management project. So, I asked myself, how do I get support? Who can I approach? How can I get the team on board? MANDATE FROM THE TOP Support from the top is crucial to kick-start a transformation in F&A, and I realized this the hard way. The background research and preparation using the three strategies above need to be in place, and when the right time comes along, you will be ready to present your ideas. In my case, an opportunity came when a member of the senior leadership asked if there were any improvement pointers for

FALL 2021

I learned that the concept of low-hanging fruit does not work in practice. Tailoring finance transformation to what the business wanted, especially to powerful stakeholders in the organization, enabled me to move mountains. FINAL WORD ON THE PEOPLE FACTOR Building relationships with internal customers and gaining their trust is crucial in getting buy-in for any transformation. Such projects must create value and provide services to solve their pain points, in the same way any business provides products or services to their customers, before internal stakeholders see the benefit of a finance transformation.

and ad hoc report preparation workload. (The second article in this series will cover more details on the vendor selection process and implementing automation.) I once listed all routine and ad hoc reports prepared by various F&A teams and focused on reports that took the longest time to prepare. Through this exercise, I concluded that about 20 to 40 percent of reports could be eliminated, automated, or simplified. The F&A teams saw how they would benefit from a transformation and how their workload could be lightened. I hope the points shared here will be useful for the scoping phase of your F&A transformation project. In upcoming articles, I will share on the specifics of implementing automation and building business knowledge to enable finance business partnering. C.F. Wong, ACMA, CGMA, is a member of the North Asia regional advisory panel for CIMA and a principal–Greater China at the CFO Centre in Hong Kong. Previously, he led the finance digital transformation of a multinational manufacturer, listed in Singapore and Hong Kong, involving all its 70 entities globally. He has more than 20 years of experience in finance, including strategic finance business partnering and mergers and acquisitions. To comment on this article or to suggest an idea for another article, contact Alexis See Tho, an FM magazine associate editor, at AlexisSeeTho@aicpa-cima.com.

One way to respond to managers who need to see how a finance transformation would benefit them is to show them the possibilities for higher efficiency. You could identify a more powerful IT tool besides spreadsheets that will help reduce both routine

PUBLIC PRACTICE How to prospect to your niche BY KYLIE PRUSER Today, many accounting firms set themselves apart from the competition by focusing on a few niche markets or services, gaining a deep understanding of their ideal client, and becoming trusted advisors and consultants for that niche. In an ideal world, once you select your niche, your target clients would pop up and come to you. But in reality, you need to go to them. As a solutions advisor for Boomer Consulting, a major part of my role is prospecting to our niche clients. So I thought I’d share the steps we take to prospect and tweak them to apply to a CPA firm’s ideal clients. STEP 1: CREATE YOUR PROSPECTING LIST When we prospect, we start with a list of the Top 400 firms, readily available from INSIDE Public Accounting. Depending on your niche, you might start with a list of the top businesses in your niche, a list of members of a particular professional organization, or a simple Google search for businesses in a target industry. This list is a good start, but it’s not complete. You’ll need to do a little bit of investigative work to gather all of the information you need. First, visit the firm’s website to find names, phone numbers, and e-mail addresses for the business owner or executives you want to connect with. While you’re there, check out whether your target prospect is part of any other associations, and whether they’ve won awards. Next, check out the individual’s LinkedIn profile to see who they know and what groups they’re involved with. Finally, I also check our own database to see whether we’ve done any work for them in the past, even if it was a long time ago. These details may seem insignificant, but they can be useful for connecting with your prospect later. Keep in mind that this step doesn’t have to be done by a busy partner, manager or staff member. You can delegate it to someone on your marketing team, an intern, or even a virtual assistant. STEP 2: SEND A SHORT EMAIL Next, we send the decision-maker an introductory email with some high-level information about the service, community, or training we think might be of interest to them. These emails should be sent from the partner or manager’s email address, as they’ll tend to get more notice. If the recipient replies to the email, the partner or manager can loop in your business development team to set up a phone call and get them further into the sales pipeline.

STEP 3: FOLLOW UP WITH A PHONE CALL If we don’t get a response from the email, we follow up with a personal phone call. During the call, I give them our short elevator pitch about our service, mention other firms we’ve worked with, and talk about our consultant’s experience and expertise. Hopefully, this call ends with setting up a phone call between the consultant and the prospect to move them further into the sales pipeline. If they’re not quite ready to set up an appointment, we ask whether we can follow up later. Prospecting in your niche needs to be a priority, so be consistent and set aside time each day for it. Of course, every email and phone call won’t result in a sale, but it’s still a chance to have prospects gain awareness of your firm and develop a relationship with you. Follow the steps above, and you’ll be well on your way to attracting prospects and growing your firm. Kylie Pruser is a solutions advisor for Boomer Consulting. Learn more at Boomer.com.

We also include a scheduling link in our emails so prospects can schedule a meeting with us directly.

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WI TH T HE DO N FARM ER!

Don’t miss the tax fun in 2021! Each year, MACPA hosts the Don Farmer Tax Workshops, noteworthy programs that skillfully combine humor with up-to-the-minute tax updates. We’re offering the following three seminars again in 2021:

Individual Income Tax Workshop

Corporate/Business Income Tax Workshop

Federal Tax Update

Monday, November 1 8:00 a.m. Live Webcast | CPE: 8

Wednesday, November 3 8:00 a.m. Live Webcast | CPE: 8

Friday, November 19 8:00 a.m. Live Webcast | CPE: 8

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HIGH-TECH SOLUTIONS What could your firm accomplish with increased IT investment? BY MARC T. STAUT Taking on technical debt insn’t always a bad decision, but it can hinder a firm’s ability to grow because it has to pay off the debt before being truly innovative. A 1 percent increase in the IT budget could go a long way toward fixing what’s broken or what has been put off being addressed for too long for many firms. PREPARE TO SCALE If you want to grow your firm efficiently, you need to take a strategic approach to scaling. Simply trying to hire more people isn’t effective, and it can actually slow you down. To scale effectively, you need to track performance metrics across the firm to determine how to optimize your operations best. Without these metrics, it’s tough to get a good handle on your firm’s health, which requires understanding the impact of each service the firm offers and how technology and other resources are being used to improve productivity. Investing in the integration of financial, talent and client data allows firm leaders to see the big picture and also zoom in on certain areas when needed. According to Flexera’s 2021 State of Tech Spend Report, financial services firms spend, on average, 10 percent of their revenue on IT. Among accounting firms, that figure is closer to 5 or 6 percent, according to surveys of Boomer Technology Circles member firms. Can you increase that number by at least 1 percent in the next year? I believe it’s not only possible, but it should be the goal of every IT and firm leader. In this increasingly digital world, every firm leader should recognize the importance of investing in technology. In the past 18 months especially, technology has moved to the forefront of virtually every firm initiative, and firm leaders have recognized that tech is the engine that drives their firms. In the meantime, we see potential cost-cutting opportunities in other areas because office space spending is down. What could you accomplish if you had an additional 1 percent of revenues in your firm’s IT budget? The answers will be unique to each firm, but I can think of a few places many should consider. PAY OFF TECHNICAL DEBT Technical debt happens when firms choose to save money in the short term but increase complexity and costs in the long term. Some examples include supporting several versions of desktop accounting software rather than transitioning all clients to a cloudbased solution or using servers or desktop computers that are no longer on support contracts or even skipping the regular refresh cycle to preserve cash.

Disparate systems limit the type of data your firm can analyze to increase efficiency and improve performance, both of which are crucial for scaling and growth. UPGRADE YOUR TEAM’S QUALITY OF LIFE Technology plays a huge part in how employees feel about their jobs and whether they’re engaged with the firm. This includes everything from the hardware on their desks to the video conferencing tools and other software they interact with every day. Last year, many people had to use whatever equipment was available to get up and running from a home office as quickly as possible. If you haven’t already, it’s time to replace any makeshift set-ups with higher-quality equipment. For example, if some members are still using old travel monitors, upgrade them to a 34-inch curved display. Or replace paper routing sheets and engagement-tracking spreadsheets with an automated workflow solution. These can have a big impact on how employees experience their everyday work, and may even influence their decisions on how long they will want to stay with your firm. LOOK FOR COMPETITIVE ADVANTAGES Emerging technologies, including robotic process automation (RPA), data analytics and blockchain, are increasingly accessible to firms of all sizes. If you haven’t yet invested in these technologies, consider allocating some of your increased IT budget here. Many of these technologies can have the dual purpose of creating value for your firm internally as well as being highly sought after new service offerings that your clients will appreciate. CONTINUED ON PAGE 34

FALL 2021

HIGH-TECH SOLUTIONS CONTINUED FROM PAGE 33

INVEST IN INNOVATION Innovation isn’t something that just happens magically when someone comes up with a new idea. Sustainable innovation is a process and methodology that your firm needs to look at as an opportunity for long term investment. Assigning an innovation leader, dedicating resources to an innovation action committee, and developing a firm-wide culture of innovation are excellent first steps in preparing your firm to adapt for success in our rapidly changing world. These technologies can help your firm internally and become a service you offer your clients down the road.

IT is the backbone of your firm, and the need to invest in technology to increase and protect your firm’s value is not slowing down. The economy has picked up, and spending on office space is down. Take this opportunity to bolster your IT budget now while you have the resources and put your firm on the path toward greater engagement, future readiness and growth. Marc T. Staut is a shareholder and Chief Innovation and Technology Officer with Boomer Consulting. Find out more by visiting Boomer.com.

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FROM OUR PARTNERS How exactly are firms deciding which payroll software to switch to? BY HITENDRA R. PATIL take their payroll business and clients away. In their search for alternatives, many have found solutions like Payroll Relief that do not compete with their firms. 2. EASY MIGRATION AND ONBOARDING Moving to another software solution creates anxiety and a one-time data migration / onboarding effort for firms. It’s a cost that involves time and effort. But when it comes to the survival of the payroll business itself, it is not a cost at all. It is an investment, provided that (a) the new payroll software is easy to migrate to, and (b) it protects the payroll business. Both factors are critically important.

Once in a lifetime, a challenge arrives that changes everything — and no, we're not talking about the pandemic. Instead, we’re talking about the challenges that accounting and payroll firms face. One such potentially business-threatening challenge impacts firms that offer payroll services — which software to use.

— unless you know what the firms that are similar to yours did before deciding upon a new payroll solution.

When your firm’s payroll software provider decides to offer full-service payroll themselves, you have a critical choice to make: either surrender your payroll practice to them or switch to another payroll solution to protect your payroll business.

Based on our studies and feedback, we have identified the most common concerns and objectives for firms, and their key decision criteria upon which they finally make payroll software decisions.

But how do you decide which payroll software to use? On first glance, most payroll solutions look and feel similar. After all, we’re talking about payroll processing and related compliance work; how much can be different? Maybe efficiency and pricing? But the decision to switch is not that easy

Here are five critical insights that can help you make your decision quickly and with great confidence. 1. SURVIVAL OF THEIR PAYROLL BUSINESS AND RETAINING THEIR CLIENTS Firm owners have told us they want to continue to provide payroll services to their clients. They don’t want to let someone else

3. PROFITABILITY The subscription price of software is not the true total cost. The tasks you have to perform manually using any software define your firm’s profitability from that software. The biggest mistake firms have made in the past was to compare the price, not the total cost. Thanks to intelligent automation around payroll processes, many firms using Payroll Relief have grown their payroll business by 200 to 300 percent or more, without adding payroll staff. 4. PAYROLL COMPLIANCE CHALLENGES Perhaps the No. 1 reason business owners outsource payroll to your firm is the complexity and tight deadlines in payroll compliance. That is the real gap between your competencies and that of your clients, who are not payroll compliance experts. But does the payroll software take the challenges out of payroll compliance without your firm needing to outsource that work to someone else? Did you know that you can retain more than 70 percent revenue from your payroll service fees by clicking just one button, which you could otherwise lose to someone else?

STATEMENT

FROM OUR PARTNERS One of the time-consuming and expensive aspects of payroll services is the need to service all the information needs of clients and their employees. 5. CLIENT COLLABORATION AND SERVICE COSTS One of the time-consuming and expensive aspects of payroll services is the need to service all the information needs of clients and their employees. This includes timely communications to clients to ensure their

payroll-related information and payments are lined up timely and accurately. If your payroll software does not allow you to manage this from within the software, it is an added cost to your firm. Automation of client and employee services, including

self-service technologies, can significantly reduce such costs and also eliminate the stress associated with tight deadlines. Never forget that you are the expert in payroll processing and compliance, not your clients — and certainly not a software company trying to service your clients themselves. Here's to a sustainable, profitable payroll service! Hitendra Patil is the head of customer success at AccountantsWorld. To learn more, visit AccountantsWorld.com.

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FALL 2021

The right payroll solution partner, the right payroll software.

Payroll is an important service for your ﬁrm. Naturally, you need and expect the full support of your payroll software provider behind you. But unfortunately, you are never going to get that from your current provider, since they themselves are in the business of providing payroll services to small businesses like your clients.

Obviously, their purpose is to use accountants to grow their own business, rather than to help accountants grow their payroll practices. You deserve better. So, do what thousands of your peers have done. These accountants have found a better payroll software partner in AccountantsWorld - the only company that’s genuinely focused on helping accountants grow their payroll practices. We created Payroll Relief® in 2004 with a single goal – to empower accountants like you to offer highly profitable payroll services without compliance headaches. No matter what payroll solution you are currently using, you’ll generate more profit from Payroll Relief while reducing your firm’s work. That’s our promise. More importantly, we never compete with you or sell our payroll solutions directly to your clients. Instead, we have tied our success to what we can do to make you more successful. So why stay with a software provider that does the opposite?

Attend our 30-minute webinar. Visit AccountantsWorld.com/Payroll to learn more. ACCOUNTING POWER

CPA Practice Advisor PAYROLL RELIEF®

HIGHEST RATING 5 YEARS

More profit, less work.

CPA Practice Advisor PRACTICE RELIEF

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CPA Practice Advisor WEBSITE RELIEF

CPA Practice Advisor

FROM OUR PARTNERS The stories your clients’ financials tell about their business BY BHAIRAVI PARIKH, CPA A recent study discovered that only 32 percent of small business owners expect their accountants to help with financial projections; the remaining have either not acknowledged the need or benefit of accurate financial statements, or believe it can be accommodated within their current role.

Only 32 percent of small business owners expect their accountants to help with financial projections. In my experience, small- to mid-size businesses are attracted to solutions more than products – anything that drives revenue growth and motivates them to buy. They are more attracted to services that promise scalability. I tell my prospective clients that a business health checkup is as important as an annual physical, and that analyzing a business’ health is similar to analyzing your personal health. In both cases, the numbers don’t lie. Just like lab reports, accurate financial statements contain significant information about a company's financial health. They help determine the current state of the business to make calculated and informed decisions in order to achieve a company’s financial goals.

Some examples include the following: • A lack of financial statements tells us the client may not be using any accounting software and will need our guidance. • A balance sheet that shows no movement in the liability section may need a review of payroll and other current liability sections. It may also require accounting accuracy for all the financing activities. • No movement in the inventory balance indicates that the client may need help with inventory and accounts payable management. • An income statement that has just one income category, “sales,” may need help with income categorization, invoicing, sales tax, and overall accounts receivable management. • Contractor and sub-contractor expenses categorized as an operating expense indicates the need for a chart of accounts restructure for proper gross margin evaluation. I recall a recent onboarding of a new client. I asked for the current year’s financial statement as a standard document request. In return, I received an Excel file that had a list of bank and cash transactions. He did not have the software to provide financial statements, and a lack of an accounting application indicated that the client was hesitant to use technology or did not have access to it. In addition, the merchant deposit bank transactions signaled the need for monthly reconciliations, while recurring debit transactions to financial institutions suggested the need for asset management and reconciling financing activities. CONTINUED ON PAGE 43

I make our engagements more attractive by offering an interactive and periodical review of a client’s financial statements at all phases of an engagement. After all, accounting records of a business have a very different purpose at different stages. Let’s review the need and use for financial data at each phase of our client engagement. ANALYZING FINANCIALS IN THE DISCOVERY PHASE Access to a client’s current financial statements is very important at the discovery phase to understand the project requirement and expand our service offerings. FALL 2021

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FROM OUR PARTNERS CONTINUED FROM PAGE 41

In one of the conversations, the client mentioned long-term contracts. This also meant he should be using a billing application and would need AR management. Based on my discovery, the client engaged me to provide these services: 1. Enable a QuickBooks® Online subscription. 2. Set up an industry-specific chart of accounts. 3. Rebuild the books of accounts for the last two years to help file taxes. 4. Provide a POS implementation that integrates with QuickBooks Online. 5. Deliver monthly bookkeeping services. 6. Provide monthly controller services, including cash, inventory, AR, and AP management. ANALYZING FINANCIALS IN THE RECURRING SERVICE PHASE Once successfully onboarded, you already have the client’s attention. In return, they expect the same attention from you. During this phase, your goal is to establish a positive financial habit of frequently reviewing financial statements. For all my clients, I insist on monthly joint reviews of financial statements. The month-end review feature in QuickBooks Online makes the process very smooth and ensures a shorter close period. In addition, with the help of the Performance Center, it is easy to review financial growth with clients. Here are some of the key items to include in your monthly financial statement review with clients on monthly basis: • Confirm cash on hand balance to ensure that there are proper internal controls, and if there is any overage or shortage, it is either minimum or accounted for. • Confirm inventory balances to determine if there is any need for control over inventory management. • Review aged AR balances with the client to suggest a tighter collection cycle. • Review expenses larger than the threshold with the client to confirm the need for capitalization. • Review any financing activities during the month to understand and properly account for a business transaction. • Review outstanding sales tax and payroll liability to ensure adherence to compliance. • Confirm transactions of a personal nature to ensure proper accounting treatment to the equity section. • Review gap in recurring expenses, such as utility, rent, or insurance in case there is a lapse in the contract period or a vendor change. • Review sudden fluctuations in the gross margin that may indicate possible categorization mistakes or flaws in inventory management.

Your scope will be now expanded from accounting activities to cash management, spend analysis, budgeting, forecasting, data analytics, and other controller / CFO services. more thoroughly, you also gain their trust. This allows you to expand your accountant role into an advisor role. Now you will be reviewing financial statements that help your client plan for their growth. Your scope will be now expanded from accounting activities to cash management, spend analysis, budgeting, forecasting, data analytics, and other controller / CFO services. Here are some of the review points that will help you scale along with your client: • Review revenue and earnings trends. Based on the client’s long- and short-term strategy, you can offer to help with financial planning, budgeting, and forecasting. • You can help to determine the need for capital restructure and borrowing activities by analyzing the company’s current value and evaluating its growth plan. • Your client may be adding multiple locations. It may even be operating in different countries. This may require class management, consolidated, and multi-currency financial statements. • There are many applications and tools to provide necessary KPIs and create reporting packages. However, it is very crucial to interpret those management reports. You can offer this as part of your expanded service offerings. With each phase of engagement, a review of the financial statements provides an opportunity to expand your role from tax accountant to controller or outsourced CFO. As soon as your clients adopt the change and identify the importance of their financials, it will be an easy task for you to become their long-term trusted advisor. Bhairavi Parikh, CPA, is a fractional CFO and consulting controller for Analytix Solutions. With more than 15 years of experience in public and private accounting, Bhairavi is well versed in managerial accounting and CFO services for small- to mid-size organizations. Find Bhairavi on Twitter at @Bhairavi_CPA.

ANALYZING FINANCIALS IN GROWTH PHASE As you start understanding your client’s business model and goals

FALL 2021

Follow the Path to Financial Data Bliss

Watch the demo

MEMBER NOTES Folahan Akinyemi has been promoted to senior accountant at Lanigan, Ryan, Malcolm & Doyle, P.C.

Chris Mathews has been promoted to partner at Lanigan, Ryan, Malcolm & Doyle, P.C.

Kaitlyn Bohrer has been promoted to in-charge accountant at Lanigan, Ryan, Malcolm & Doyle, P.C.

James Neveleff has been promoted to in-charge accountant at Lanigan, Ryan, Malcolm & Doyle, P.C.

Bryna Campbell, CPA, CGMA, Chaim Fine, CPA, CFP, and Jennifer Rock, CPA, CITP, have been elected partners at Gross, Mendelsohn & Associates, P.A.Campbell has more than 30 years of accounting experience and provides audit, accounting, tax and consulting services to businesses and non-profits. With 18 years of accounting experience, Fine provides a full range of tax and accounting services to small businesses, investment partnerships, high-net-worth families and real estate companies. Rock has more than 20 years of accounting experience and performs audit and accounting work for all kinds of non-profits, health and welfare organizations, and associations.

Angela L. Quigley, CPA, manager at SEK, CPAs & Advisors, has been named a "Forty Under 40" recipient for 2021 by the Central Penn Business Journal.

Carter Heim, CPA, CEO of HeimLantz CPAs and Advisors in Annapolis and former chair of the Maryland Association of CPAs’ Board of Directors, is one of four business leaders who will be inducted into the Anne Arundel County Chamber of Commerce’s Hall of Fame. The awards dinner is scheduled for Oct. 14 at the DoubleTree Hotel in Annapolis. Lisa Keaner has been promoted to senior accountant at Lanigan, Ryan, Malcolm & Doyle, P.C.

Lexi Rose has been promoted to in-charge accountant at Lanigan, Ryan, Malcolm & Doyle, P.C.

FIRM NOTES Yount, Hyde and Barbour CPAs and Consultants of Winchester, Va., has merged with Rowles & Company, LLP, in Baltimore. The merger will make the Baltimore office YHB’s ninth location. The addition of Rowles to YHB also expands its expertise in serving credit unions as Rowles professionals provide a range of services to financial institutions of all types. The Rowles professional staff of 11 will join YHB and continue to serve clients out of their current 8100 Sandpiper Circle, Suite 308 location in Baltimore.

NEWLY-LICENSED CPA

Swearing-In Ceremony Celebrate our profession and honor its future.

November 18, 2021 6:00 – 8:30 pm Hanover, MD FALL 2021

VENUE:

LEARN MORE & REGISTER AT MACPA.ORG/CELEBRATE #MACPACELEBRATE

#MARYLANDCPAPROUD

CLASSIFIEDS job openings E X P E R I E N C E D A C C O U N TA N T S For nearly 100 years, Grossberg Company LLP has been a premier provider of accounting, tax and business consulting services, specializing in services to the real estate industry. Grossberg Company LLP has a well-known reputation of unparalleled client satisfaction. At the heart of this success, are professional staff members who possess the skills and training required to excel in the ever-changing world of new tax laws and regulations, advanced technologies and strategic business planning. Built on decades of hard work and timely responsiveness to clients, Grossberg Company LLP devotes a substantial amount of firm resources to training its people, keeping them apprised of the latest developments that may affect their client's business operations, tax planning strategies and their longterm business objectives. As a result, the employees of Grossberg Company LLP are some of the best and brightest in their field and the casual, laid-back working atmosphere lends itself to producing successful, satisfied professionals. This is an integral part of who we are, why we are successful, and how we have maintained our reputation as one of the best firms in the country. Growth in our business has created opportunities for experienced accountants in our North Bethesda, Maryland office. If you are seeking to the move to the next level in your career, consider joining the Grossberg Team! Requirements: • BS/BA degree in Accounting or related field • 3 to 10+ years of experience • Tax or audit and accounting experience in a public accounting arena

mergers & acquisitions MARYLAND PRACTICES FOR SALE:

gross revenues shown: NW of Baltimore CPA $660K; N Baltimore Co. CPA $200K; Montgomery Co./DC Metro Area CPA Tax $120K; Essex, MD CPA $575K; Frederick, MD CPA $230K. For additional information or to see nationwide listings and register for free email updates visit us at www.APS.net. THINKING OF SELLING YOUR PRACTICE? Accounting Practice Sales is the leading marketer of tax and accounting practices in North America. We have a large pool of buyers, both individuals and firms, looking for practices to purchase. 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. We welcome the opportunity to talk to you about our risk-free and confidential services. For more information please call Bradley Holmes with the APS Holmes Group at 1-800-397-0249 or email Bradley@apsholmesgroup.com.

• Ability to research and apply concepts to clients’ situations • Proficiency in technical writing and research • Ability to communicate with staff at all levels • Comfortable with working in a team environment Grossberg Company LLP offers a competitive compensation package including training and opportunities for advancement; medical, dental, disability insurance, life insurance, retirement program including profit sharing; paid holidays and vacation, and summer half-day Fridays. Qualified candidates should apply on-line at: grossberg.catsone.com/careers

HIGH QUALITY MID-SIZE TOWSON C PA F I R M seeks motivated professionals with experience in individual income tax preparation (or review). Flexible schedule, challenging work and excellent compensation. Experience with ProSystem FX Tax is a plus. Contact: Kenneally & Company 660 Kenilworth Drive, Suite 104 Towson, MD 21204 410-321-9558 E-mail: dmiller@jlkcpas.com

HOW TO SUBMIT A CLASSIFIED AD To submit a classified ad, contact Krislyn Suljak at krislyn@macpa.org, or 443-632-2307. REPLIES TO ADS WITH FILE NUMBER: Email krislyn@macpa.org, or reply via mail: Krislyn Suljak MACPA, Classified Ads 901 Dulaney Valley Road, Suite 800, Towson, MD 21204

STATEMENT

MACPA COULDN’T DO EVERYTHING THAT WE DO FOR OUR MEMBERS WITHOUT OUR

PREFERRED PROVIDERS

L E AR N M O R E AT

www.macpa.org/preferred-provider-futureready-resources For information about sponsoring MACPA programs or to learn more about advertising with the MACPA please contact Amy Puente at 443.632.2323 or amyp@macpa.org.

FALL 2021

MARYLAND ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS 901 Dulaney Valley Road, Suite 800 Towson, MD 21204 410.296.6250 | www.macpa.org

REDUCING WORKERS’ COMP RATES AGAIN BY

...and REWARDING

SAFE

BUSINESSES WITH A CORPORATE DIVIDEND *

5%2021... in Ask your agent for a quote or visit ceiwc.com *Minimum eligibility requirements apply.

MACPA Statement // Fall 2021

Articles inside

Profession's year-long celebration of pioneering Black CPAs

How exactly are firms deciding which payroll software to switch to?

How to prospect to your niche

Learning from Black CPA career role models