MACPA Statement // Spring 2022

STATEMENT MACPA’S

SPRING 2022

10 STEPS TO BETTER CYBER HYGIENE Threats are everywhere, but a little diligence and education can help you protect yourself, your employees, and your business

ALSO INSIDE: MACPA CEO Jackie Brown announces retirement Page 3 Maryland Association of Certified Public Accountants, Inc.

Does your data tell a story? Page 27

CONTENTS Spring 2022 | Maryland Association of Certified Public Accountants, Inc.

CHAIR’S COLUMN.............................................................................. 2 FEATURES

MACPA CEO Jackie Brown announces retirement............................................... 3 10 steps to better cyber hygiene.......................................................................... 4

DEPARTMENTS

News & Views........................................................................................................ 6 Public Practice........................................................................................................ 8

Business & Industry.............................................................................................. 21 High-Tech Solutions............................................................................................. 29 From Our Partners............................................................................................... 32

MEMBER NOTES................................................................................ 38 CLASSIFIEDS........................................................................................... 38 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

PROFESSIONAL DEVELOPMENT

Christine Aspell, CPA Secretary/Treasurer

Natalie Antonakas Kelly Brown Chris Dougherty Emily Trott SPONSORSHIP / ADVERTISING SALES Amy Puente Krislyn Suljak

Avonette Blanding, CPA Immediate Past Chair Maxene M. Bardwell, CPA, CIGA, CIA, CFE, CISA, CITP, CRMA Elise Brouillette, CPA Leon Katsnelson Kimberly Mustard, CPA, CGMA Dave Ryan, Esq., CPA (retired) Tim Samuel, CPA Thomas White, CPA, CGMA Jeff Wilson II, CPA, PFS, CFE, CGMA, CDFA

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

WE WANT TO HEAR FROM YOU! See below to submit content

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

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CHAIR’S COLUMN The secret of life in a world of change? Keep moving. BY LEXY KESSLER, CPA / PARTNER, ARONSON LLC “Life,” said Albert Einstein, “is like riding a bicycle. To keep your balance, you must keep moving.” We don’t have much choice in the matter, do we? The world keeps moving, faster every day. We’ve got to keep moving just to survive. And so we do, in so many ways. Let’s count a few of them, shall we? The list of trends that are impacting our profession starts and ends these days with COVID-19. So many people -- in our profession and elsewhere — want to be done with the pandemic. The pandemic, though, is not done with us. As soon as we think the worst is behind us, another surge surfaces. So we keep living with it, and learning new lessons along the way. As heartbreaking as the crisis has been, though, there’s a strange paradox at play here. The pandemic offers us a rare opportunity to alter our profession’s trajectory. We get to decide, from this point forward, how we work, where we work, and with whom we work. It’s a bit scary and terribly exciting at the same time. We’ve never had an opportunity quite like this one. It’s our chance to build

Change is our purpose. We’re your lookout post. We scan the horizon for weak signals of disruptive change, try to figure out what those changes mean, and help you take advantage of them. 2

a profession and a workforce of the future. It’s not our only opportunity, either. The hard trends that are impacting our profession are tools with which we can build a blueprint for tomorrow. New technologies, laws and regulations are joining unprecedented demographic shifts to create an inflection point for our profession. We know these things are going to happen. They are happening, in fact. There’s nothing we can do about it. How we respond to these unprecedented changes will define us going forward. That’s why the MACPA is here. Change is our purpose. We’re your lookout post. We scan the horizon for weak signals of disruptive change, try to figure out what those changes mean, and help you take advantage of them. Our promise to you — something we call MACPA 3.0 — was created with that purpose in mind. That promise includes four parts: • Community: MACPA members are connected to each other. We help members grow their professional networks and learn with — and from — each other. • Advocacy: MACPA members are protected. We promote the value of the CPA profession and support positive legislative outcomes for our members and the public. • Professional development: MACPA members achieve more. We help our members stay future-ready with meaningful professional learning and resources. • Resources: The MACPA scans the horizon to keep our members informed and aware, and to assure a futureready profession. CPAs are more important than ever, but only if we embrace change. This is what the MACPA does for you, every day.

It’s what MACPA CEO Jackie Brown has done for you every day for the past 42 years. Her career comes to a close at the end of June, and while Jackie is not a CPA, she has devoted her entire professional career to working on your behalf. That level of commitment and devotion demands your respect. I hope you’ll join me in thanking her and wishing her well as she writes the next chapter of her life’s story. Given the exponential changes our world is facing, we need more people like Jackie working on our behalf. We need a community of allies committed to helping us become more future-ready. That community is the MACPA, and our journey toward that future-readiness starts now. It’s been my honor and privilege to serve you for the past year as the MACPA’s chair. To paraphrase Steve Jobs, I think we’ve made our own little ding in the universe over the past 12 months. With the MACPA’s help and leadership, I’m confident you’re ready to make a few more.

STATEMENT

MACPA CEO Jackie Brown announces retirement 42-year MACPA career comes to an end on June 30 B Y B I L L SH E R IDA N , CA E

A remarkable era is coming to a close for the Maryland Association of CPAs. Jackie Brown, a 42-year member of the MACPA team who has served as the association’s president and CEO since early 2021, has announced that she will retire on June 30, 2022. A committee led by former MACPA Board of Directors Chair Ken Kelly is conducting a search for Brown’s permanent successor. Brown joined the MACPA in 1981 as a member of the association’s public relations team. She rose steadily through the ranks as part of the MACPA’s membership and CPE teams, and eventually was named chief operating officer when Tom Hood joined the staff as CEO in January 1997. She was promoted to CEO in February 2021 when Hood left the association to become executive vice president of business growth and engagement at the Association of International Certified Professional Accountants. “I’m so very grateful for the opportunity to work for this extraordinary profession, in various roles, for nearly 42 years,” Brown said. “So many priceless relationships have made that possible — members I call friends, colleagues from all over the country and, right here in Maryland, the absolutely fantastic MACPA team.”

“...her trademark has always been her steadfast loyalty and commitment to those around her. ”

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Brown has been an active volunteer throughout her career. Much of her activity has centered on her personal priorities of faith and family, though she also has served as a volunteer to the profession through her work with the AICPA’s Financial Literacy Committee, the Future of Learning Task Force, the Women’s Initiative Executive Committee, and as Interchange Conference chair. Accolades for Brown’s service have come in from throughout Maryland and across the country. “Jackie has spent her entire career advocating for and driving the future of our profession, not just during her time as CEO but as a partner with Tom Hood for so many years,” said Lexy Kessler, a partner with Aronson and chair of the MACPA’s Board of Directors. “She is a stellar example of a leader with undying passion for the profession who truly makes a difference. We wish her many happy, healthy years in retirement with her husband and family.” “Jackie has offered exemplary support for the CPA Profession over her 42-year career,” Hood added. “Her unique ability is her strength at building relationships, which she has used in every position she has held at the association — especially her last two positions as chief operations officer with me and as CEO. That strength was the glue that held together our leadership team, our volunteer leaders, and so many critical external relationships. I am proud to call her a friend, colleague and a mentor, and I thank her for her service and dedication to the MACPA and our profession.” “I’ve had the supreme benefit of knowing Jackie Brown for more than three decades,” said Sharon Bryson, a longtime friend and

CEO of the North Carolina Association of CPAs. “In my mind, her trademark has always been her steadfast loyalty and commitment to those around her – and that has indeed been true with her state CPA society colleagues, and of course, with respect to the MACPA team and its entire membership. Jackie’s positive approach, her energy, and her support of others have been felt by so very many of us. When you combine these amazing attributes with her undeniable focus on improving all aspects of the accounting profession, Jackie truly leaves behind a legacy of benefitting anything and everything she touched.” The CEO search committee is committed to identifying an exceptional leader who can guide the MACPA through an increasingly complex yet opportunistic professional landscape. Bill Sheridan, CAE, is editor of The Statement and chief communications officer of the Maryland Association of CPAs.

Threats are everywhere, but a little diligence and education can help you protect yourself, your employees, and your business B Y B I L L S H E R IDA N , CA E The numbers are staggering, and frightening.

500 employees is just under $3 million.

• A ransomware attack occurs every 11 seconds. In fact, 60 percent of companies have experienced a ransomware attack in the past year, and their average down time was six days. • One in every 6,000 emails contains suspicious URLs, including ransomware. • The number of malicious emails being sent is up 600 percent. • 560,000 new pieces of malware are detected every day. The costs can be just as staggering. According to research from the Center for Strategic and International Studies and security vendor McAfee, estimated global losses from cyber crime hit $1 trillion in 2020, which was double the losses of 2018. A year later, those losses increased about six-fold, to an estimated $6 trillion. The average cost of a data breach for companies with fewer than

Adding fuel to the fire is Russia’s invasion of Ukraine. Officials with the Department of Justice are urging companies throughout the world to strengthen their cybersecurity defenses in the wake of the invasion. In a recent article for TechRepublic, reporter Brandon Vigliariolo said cyberattacks against U.S. companies aren’t a question of if, but rather of “when.”

“Scott Kanry, CEO at cyber risk management company Axio, said there’s absolutely no question that U.S.-based organizations will see an increase in cyberattacks due to the conflict,” Vigliariolo writes. “Kanry said that we’re likely to see attacks like (distributed denial of service, or DDoS), phishing, activation of persistent malware and more across the 16 critical infrastructure sectors, STATEMENT

potentially all the way down to small but vital local organizations. ‘We should also be paying attention to the other organizations that are critical to a functioning society, like hospitals, schools, health clinics and local banks. Often the smallest organizations lack even basic cyber defenses which make them vulnerable to an attack,’ Kanry said.” What’s at stake? Not much, really — just your organization’s reputation, interruptions to your ability to conduct business, your going concern, our country’s economic stability, and possibly even our national defense. And given our shift to remote work, this is no longer something that only business leaders need to worry about. Everyone, from the top to the bottom of your organization, is responsible for cybersecurity. HOW TO PROTECT YOURSELF So what can we — as organizations, as leaders, as individuals — do to keep our businesses safe? Quite a bit, actually. So says Clar Rosso. The CEO of global cybersecurity association (ISC)2, Rosso offered a list of 10 cybersecurity steps business leaders can take to protect their organizations during a session at the recent DigitalNow Conference in Nashville. There’s a little something in here for everyone. 1. Lock down endpoints. This is especially important for your remote workforce. Securing mobile devices, and implementing safety measures like antivirus solutions, URL filtering and blocking, and email scanning are all ways of protecting your remote assets from nefarious elements. 2. Enable ‘least privilege access.’ This means restricting administrative rights, requiring admins to install new applications, and “turning off this kind of access when employees leave or no longer need it,” Rosso said. 3. Patch. Installing routine updates from software vendors can help remove bugs that could otherwise be exploited by cyber attackers. “Installing these patches in a timely fashion is important in limiting points of vulnerability,” Rosso said. 4. Stop ‘shadow IT.’ Remote workers often download non-approved applications which can expose your organization to dangerous vulnerabilities. “Good application management practices can ensure that only approved programs are being used with proper oversight from a security professional,” Rosso said. 5. Mandatory VPN. Virtual private networks add a crucial layer of security by creating secure Internet connections to other networks via encrypted data and hidden IP addresses. “In a remote work environment,” Rosso said, “this is a key tool for small businesses to use when communicating with their employees and partners.” 6. Backup and recovery. One of the best defenses against data loss and cyberattacks is to regularly conduct all-encompassing backups of all systems.

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Get more cybersecurity tips on our podcast Clar Rosso offers additional insights and advice about how to strengthen your cybersecurity defenses in a recent episode of the MACPA’s “Future-Proof” podcast. Listen to the conversation at bit.ly/CyberCPA. And don’t forget to subscribe to receive new episodes of “Future-Proof” wherever you get your podcasts.

“In the event of a cyber incident,” Rosso said, “small businesses that frequently back up their data have the option to simply roll back to the last uninfected backup for a given system, limiting the loss of data and the time, cost and expertise needed to recover.” Don’t forget to train remote employees how to back up their data and — equally important — how to recover uninfected data from a backup. 7. Wi-fi security. The wi-fi network in your workplace should be secure, encrypted, and hidden so that it does not broadcast its service set identifier (or SSID) to the world. Your remote workers will be using consumergrade Internet connections routers. Studies show that one in 16 home wi-fi routers still use the manufacturer’s default admin password, making them vulnerable to hacking At the most basic level, Rosso said it’s critical that they change default passwords on their home routers. 8. Fight phishing. The top cybercrime in 2020 according to the FBI, phishing scammers send fake emails designed to trick readers into sharing their personal information. These emails often look authentic, but they frequently leave clues as to their criminal intentions. Rosso said organizations should establish clear policies on acceptable email use. Meanwhile, staff should be trained on how to spot phishing emails and bad links, and to report any suspicious emails to organization leaders. 9. Better passwords. These are your organization’s weakest cybersecurity link. “For the sake of convenience, it is tempting to reuse passwords, share passwords between users, and even document them in one place such as a sticky note,” Rosso said. “However, to avoid falling victim to an avoidable cyberattack, it is imperative that all passwords are unique, complex, and kept private.” The use of a password management tool like 1Password or LastPass can help your staff easily create, store, and recall secure passwords. 10. Staff up. Assess the cybersecurity IQs of your team members, then focus on the non-technical solutions they can easily implement first before training them on the more technical security aspects. Continuously explore your technology options — particularly if you are a small business with limited resources. Bill Sheridan, CAE, is editor of The Statement and chief communications officer of the Maryland Association of CPAs.

NEWS & VIEWS Maryland private letter ruling process a step closer to reality B Y B I L L S H E R IDA N , CA E Maryland’s General Assembly has passed legislation that would establish a Legal Division in the Office of the Comptroller and create a private letter ruling process.

Division in the Office of the Comptroller and creating the PLR process, Maryland would take a strong step in the fair and transparent administration of state tax laws.

The bills in question, House Bill 366 and Senate Bill 477, passed their respective chambers during the General Assembly’s 2022 legislative session. Gov. Larry Hogan signed the legislation into law on May 16.

The MACPA’s State Tax Committee has advocated for this legislation on behalf of our tax community and worked with bills’ sponsors, Del. Brooke Lierman and Sen. Katie Fry Hester, on an amendment to extend the amount of time the PLR is binding from three to seven years.

MACPA legislative volunteers have been advocating for a Maryland private letter ruling (PLR) process for a long time. PLRs allow taxpayers to get binding answers from the Comptroller’s Office to their tax questions. In turn, the taxpayers can then pay the right amount of tax at the right time, rather than years later after an audit or litigation. Several dozen other state departments of revenue have a similar process in place. By establishing a Legal

MACPA members and legislative volunteers Karen Syrylo and Jeff Lawson in particular are to be recognized for taking time out of their busy-season schedules to testify in support of this important legislation. “We’ve been looking forward to having a PLR process in place for a long time,” said Syrylo, a tireless legislative volunteer and member of the MACPA’s State Tax

Committee. “The MACPA and other organizations advocated for it to be included in the Augustine Commission’s 2016 tax issues report, and it was. We celebrated when it was included in 2016 legislation in Senate Bill 843, but we’ve been disappointed that the Comptroller’s requests for additional funding to implement the program have not granted in any year since. MACPA members have even worked with the Comptroller’s Office with suggestions for alternative, partial procedures. “Having this year’s bills pass in both chambers with strong bipartisan support is excellent,” she added. “Now, we look forward to the next step – having the state budget process provide sufficient funding for the Comptroller’s Office to be able to hire the right, experienced personnel to perform the duties of the

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STATEMENT

NEWS & VIEWS new Legal Division and private letter ruling procedures as provided in the recently passed bills.” “This is a major milestone for Maryland tax practitioners,” said Lawson, a shareholder with Stoy, Malone & Company and chair of the MACPA’s State Tax Committee. “Until now, we’ve had only informal processes through which we can receive answers to technical questions from the Comptroller’s Office, and those answers have not been binding. MACPA volunteer leaders are looking forward to working collaboratively with the Comptroller’s Office on regulations and funding to ensure that the program starts off on the right track.” Bill Sheridan, CAE, is editor of The Statement and chief communications officer for the MACPA.

Support our PAC and strengthen your voice in Annapolis Maryland’s General Assembly meets in Annapolis each year and votes on critical issues that impact your profession, your livelihood, and the businesses you serve. That’s why we urge you to support the CPA Committee on Political Action. The CPA/CPA is the only political action committee in Maryland dedicated solely to fighting for CPAs in the legislative arena. Good relationships with legislators are the core of the MACPA’s legislative advocacy efforts. Your contribution to the CPA/CPA is one of the easiest and most effective ways for CPAs to get involved in the political process and have an impact on the profession. Contributions to our PAC lag far behind other professional groups. This puts us at a severe disadvantage, especially when certain groups have interests

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A virtual lock for the job

opposed to ours and have far greater PAC participation from their members. Through contributions from members like you, the PAC works toward favorable outcomes on legislative issues, educates legislators about matters that are important to the CPA profession, and keeps MACPA members informed. But we can’t do it alone. Your involvement makes a difference and ensures that, together, we make the greatest impact. Please support the MACPA’s CPA/ CPA today by donating online at MACPA.org/advocacy. Or scan the QR code here. Your contribution to the CPA/CPA will allow us to support legislators from both parties, and help the CPA profession maintain an influential presence in Annapolis. Thanks so much for your support!

John Wolohan, a junior at McDaniel College from New Windsor, Md., and a triple major in business administration, economics, and accounting economics, interviews with McDaniel alumnus Joey Conklin and Tyler Codd of Sturgill during McDaniel’s Interviewing Day on Sept. 30, 2021. The virtual event featured 26 accounting majors conducting 84 interviews with representatives from nine firms — Bounds Accounting & Tax Services; CliftonLarsonAllen; E. Cohen & Company; Gorfine, Schiller & Gardyn P.A.; Gross, Mendelsohn & Associates; KatzAbosch; RSM; Sturgill; and Withum.

PUBLIC PRACTICE CPA Evolution will impact today’s interns. How can firms prepare? BY CARL MAYES For the past few years, the American Institute of CPAs and the National Association of State Boards of Accountancy have collaborated with stakeholders to reimagine CPA licensure through the joint CPA Evolution initiative, an effort to transform the CPA licensure model. The organizations have now reached the critical implementation phase of this initiative, which addresses the rapidly changing skills and competencies required of a 21st century CPA. Many of the students slated for spring and summer 2022 internships will sit for the new CPA Evolution-aligned CPA Exam, which is expected to launch in early 2024. This has implications for firms in a variety of areas, from recruiting considerations to engagement with academia. The time to start plotting out your firm’s strategy is now. CPA Evolution will bring about some of the most substantive changes to licensure in decades, including a new Core + Disciplines licensure model, increased coverage in areas like information systems and data analytics, and the addition of personal financial planning. But what does it all mean for your firm? Here are some top considerations to aid your hiring and recruitment strategies. STUDENTS ARE MORE INTERESTED IN PURSUING CPA UNDER THE NEW LICENSURE MODEL In a fall 2021 AICPA-NASBA survey of accounting students, 85% of respondents indicated the new approach to licensure either increases their interest in pursuing CPA or keeps their interest at a very high level. In discussion groups with students, common themes surrounded their heightened interest in areas like data analytics, cybersecurity and information privacy, all of which are expected to be

addressed in the new CPA Exam based upon preliminary practice analysis research.

aligned with their interests. In a 2020 AICPA-NASBA survey of students:

This may represent an opportunity for firms when recruiting new staff. In addition to highlighting the earnings power of CPAs and the impact they can have on society, consider discussing the impending changes to the licensure model and how they reflect the exciting work firms are doing in emerging areas.

• 54% of respondents indicated they plan to pursue the Business Analysis and Reporting discipline, • 24% plan to pursue Information Systems and Controls; and • 22% plan to take Tax Compliance and Planning. To pass these disciplines, students will need more knowledge and skills in the related subject matter, and firms will be the beneficiaries. In fact, in an April 2021 AICPA-NASBA survey of firm hiring directors, 83% of respondents from firms with 11 or more personnel indicated that if accounting programs were aligned with CPA Evolution, their hiring of new graduates from accounting programs would likely increase, accounting program graduates would be considered more valuable than they are today, or both.

For students interested in technology, there has never been a better time to pursue CPA. UNIVERSITIES ARE CHANGING THEIR CURRICULA TO INCORPORATE EMERGING TOPICS In another fall 2021 pulse survey, the AICPA and NASBA asked accounting faculty about their plans relative to CPA Evolution. Here’s what they heard: • Eighty-eight percent of respondents indicated their accounting program will be making curriculum changes based on CPA Evolution. • Eighty-one percent said they expect to make curricular changes by Fall 2022. To inform hiring decisions, firms may want to reach out to the universities they recruit from to determine what, if any, curriculum changes are being made. Practitioners may also consider aiding the academic community in the transition, as nearly half of the faculty that won’t be making curriculum changes cited challenges in finding qualified personnel to teach emerging topics. Subject matter experts at your firm might consider serving as guest lecturers or adjunct professors to ensure the next generation of CPAs has the skills and competencies they need to be successful. MANY ACCOUNTING PROGRAM GRADUATES WILL HAVE DIFFERENT SKILLSETS As academic programs evolve, students are expected to pursue learning tracks

Firm leaders may want to engage with the firm’s HR team to consider how CPA Evolution will impact their approach to talent acquisition moving forward. NEXT STEPS The AICPA is conducting a practice analysis to determine the knowledge and skills required of newly licensed CPAs that should be assessed in the CPA Evolution aligned Exam. An associated CPA Exam Blueprint, which will detail content eligible for testing in each of the Core and Discipline sections, is expected to be issued for public comment in mid-2022 and published in final form in early 2023, with the launch of the new CPA Exam planned for January 2024. As CPA Evolution continues to progress, please check back for updates at EvolutionofCPA.org. If you have any questions, please reach out to the AICPA and NASBA at Feedback@ EvolutionofCPA.org.

STATEMENT

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#MarylandCPAproud

Monthly Online Connection

Timely Updates For Members

N E W C O N T E N T E V E RY M O N T H FOR OUR PROFESSIONAL COMMUNITY The 2022 MACPA Town Halls are here for you, our members, to give timely and relevant updates on a monthly basis. Bringing together our members to connect, share ideas, and discuss the latest in what impacts you and the CPA profession is something we are most proud of at the MACPA. Attend each month to stay connected and keep up to date.

F U L LY V I R T U A L • C P E : 1 . 0

Upcoming Town Halls: JUNE 24

J U LY 2 2

A U G U ST 1 9

Complimentary CPE for MACPA members

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LEARN MORE & REGISTER: MACPA.ORG/NEW-TOWNHALLS

WE’RE BACK 2019

CPE AT THE BEACH

June 21-24, 2022

HIGHLIGHTS

O C E A N C I T Y, M D

Welcome Reception sponsored by Frost Law on Tuesday night

Time to lather on that CPE again.

Ethics course with Greg Conderacci on Tuesday

Several Complimentary CPE sessions exclusively for MACPA members. Discounted room rates are available!

8 course options on both Wednesday and Thursday in various fields of study MACPA’s Annual Meeting as part of Friday’s Members’ Town Hall

BACK BY POPULAR DEMAND

Happy Hour sponsored by ADP on Wednesday night

#FutureReady Learning Labs!

Series of TED-style talks from our strategic partners, with complimentary CPE.

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#BeachCPE |

#MarylandCPAproud

COMPLIMENTARY CPE FOR MEMBERS

#MarylandCPAproud

2022 MACPA MEMBER

ANNUAL MEETING & TOWN HALL June 24

CPE: 1

Ocean City & Online

Celebrate our success and help set the course for our future Maryland Association of Public Accountants members are invited to attend this complimentary program — in-person or live online — to celebrate the success of the past membership year and to perform all of our official business. This includes a formal vote on MACPA’s Board candidates.

“

This year’s Annual Meeting is also the concluding part of MACPA’s CPE Beach Retreat: macpa.org/beach-retreat

Learn more: macpa.org/annual-meeting

This is a year to celebrate! I hope a record number of MACPA members will join us, in person and virtually.

- Lexy Kessler, CPA MACPA 2021-22 Chair STATEMENT

PUBLIC PRACTICE How auditors can detect fraud Editor’s note: The following article is reprinted with permission of the New Jersey Society of CPAs. BY DESIREE MARTINEZ, MS Everyone is familiar with the word “fraud,” whether it is because they or someone they know has been a victim of it or because of the many stories of business scams such as the Enron scandal. Every year, around 5 percent of entities’ revenue is lost to insider fraud. That represents a potential total loss of $4 trillion annually in the U.S. alone. The reality is that fraud is everywhere, and the threat of fraud keeps increasing. Due to COVID-19 and current economic conditions, there is an increased risk of fraud for both individuals and businesses. Auditors conduct their engagements in accordance with Generally Accepted Auditing Standards. The American Institute of CPAs’ Code of Professional Conduct requires members to comply with the Statements on Auditing Standards. SAS No. 99 requires auditors to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements, whether due to fraud or error. According to SAS 99, there are three conditions typically present when fraud is committed: • Incentives/pressures — employees’ mindset towards committing fraud. Example: Bonuses that are based on financial metrics. • Opportunities — circumstances that allow fraud to occur. Example: Lack of supervision of internal controls and a poor tone at the top. • Attitudes/rationalizations — individuals’ justification for committing fraud. Example: An individual wanting to get back at their employer because he/she was treated wrongly or an employee is feeling entitled. Keep in mind that most fraud occurs with trusted personnel. How auditors can detect fraud The standard defines fraud as an intentional act resulting in a material misstatement in the financial statements. Fraud on financial statements consists of the

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following two types: • Misstatements resulting from fraudulent financial reporting • Misstatements resulting from the misappropriation of assets The AICPA recommends that auditors assess where a company may be vulnerable to fraud and assess risk of material misrep resentation and fraud by management. It is important to keep in mind that per AU-C Section 240, Consideration of Fraud in a Financial Statement Audit, both those charged with governance and management are primarily responsible for the prevention and detection of fraud. Management, with the oversight of those charged with governance, needs to establish strong prevention guidelines which should include creating a culture of honesty and ethical behavior. While auditors are not responsible to detect fraud (but to identify fraud through planning and risk assessments), there are guidelines that auditors need to follow to comply with GAAS, including the following: • Discussion among the engagement team. It is crucial that everyone on the engagement team — from interns to partners — discuss that the financials might be susceptible to material\ misstatements due to fraud. Everyone needs to be aware of external and internal factors that may create an incentive or pressure to commit fraud. • Discussion with management and others within the entity. When interviewing employees to determine if they have any knowledge of fraud, the auditor should not only focus on asking these questions to management but also to other employees such as warehouse staff who handle the dayby-day operations. • Assessment of the risk of material misstatement. The auditor needs to identify and assess the risk of material misstatement at the financial statement level and at the assertion level for classes of transactions and account

balances. The auditor needs to review the financials, and, based on industry and entity knowledge, identify the risk of material misstatements. • Professional skepticism. Auditors should maintain professional skepticism throughout the audit. It doesn’t matter whether they have been working with the entity for several years or they have developed a relationship with management, auditors should always recognize the possibility that a material misstatement due to fraud may exist. Auditors need to be aware that business disruption coupled with employees working remotely could result in internal controls not functioning as designed, thus allowing greater potential for fraud. Auditors must be diligent, remain skeptical and follow their instincts. If something doesn’t seem right, ask more questions, perform more testing and investigate further. Desiree Martinez, MS, is a senior auditor at Traphagen CPAs & Wealth Advisors. She can be reached at desiree@tfgllc.com.

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LEADERSHIP How leaders can avoid the dangers of ‘yes’ people Editor’s note: The following article is reprinted with permission from AICPA-CIMA. BY HANNAH PITSTICK

IF ‘YES’ IS ALL YOU’RE HEARING, YOU HAVE REASON FOR CONCERN. Leaders who surround themselves with an ocean of nodding acquiescence are liable to run into icebergs. In order to discover issues while they’re still small and encourage team members at all levels to propose creative solutions and challenge ingrained ideas, leaders should navigate their teams towards a culture of candour and away from blind agreement. “The danger of surrounding yourself with ‘yes’ people is that often those people are telling you what they think you want to hear versus what they actually think,” said Kim Scott, author of Radical Candor: Be a Kick-Ass Boss Without Losing Your Humanity, based in the San Francisco Bay area. “If you haven’t created a culture of psychological safety on your team, chances are people aren’t going to feel empowered to challenge you when you’re wrong, which can lead to disastrous consequences.” Joselin Martin, CPA, CGMA, owner of True North CFO, based in Baltimore, has witnessed both the consequences of stifling candour and the benefits of maintaining frank communication in all types of business relationships, whether it’s between owners and financial managers, managers and direct reports, or finance professionals and clients. Martin was working as a financial manager for a construction company during the years leading up to the 2008 Great Recession, and she could see from her projections that the organization was highly susceptible to any changes in the industry. She believes that her ability to have uncomfortable conversations with the general manager about challenges facing the organization allowed them to make hard decisions that helped avoid the worst of the crisis.

“Because I had the ear of someone who was willing to listen, we were able to recognize the signs early and make a plan,” she said. Whether you’re working to break down silos between functions, encourage direct reports to speak up, or facilitate the free flow of ideas, here are some ways to avoid the dangers of yes people within your organization: ACTIVELY SEEK AND REWARD FEEDBACK Perhaps the best way to encourage your direct reports to give you feedback is to actively ask for it and receive it in a way that shows they can continue to be honest with you, Scott said. “Convince your team you actually do want to hear what they really think,” she said. “Show them that your requests for criticism are genuine and that you sincerely appreciate it when they say what they think.” Scott recommends leaders ask for criticism regularly and reward candour when received. It may take a while for direct reports to gather the courage necessary to give difficult feedback, which is why it’s important to reward small wins along the way.

For example, Scott’s request for feedback was consistently met with silence during team meetings, but eventually someone spoke up to complain about the tea in the office. In response, she thanked them publicly, wrote them a note by hand, and approved funds to get better tea for everyone in the office. Even relatively minor feedback like this can be used to show your entire team what happens when they speak up about workplace issues, she said. Feedback can also be collected through company-wide surveys, which can be anonymous to eliminate any fear of retribution. The key to encouraging employees to speak up about issues in surveys is to take the feedback seriously and implement any common-sense requests immediately. Kirsten Duke, CPA, CGMA, the CFO at DomainTools, based in Seattle, said an organization-wide survey helped company leadership recognize that employees were fearful of coming back to the office while COVID-19 continued to pose a risk and a vaccine was not available. “We listened to this feedback and made the decision that employees would be able to continue to work remotely through the end of the year, at which time we STATEMENT

LEADERSHIP would assess the situation for next steps,” she said. GET AN OUTSIDE PERSPECTIVE Employees are sometimes afraid to confront their boss directly about an issue, but they might be more willing to express their concerns to a third party, Duke suggested. Earlier this year, DomainTools conducted an organizational assessment, where they brought in an external consultant to ask each of their employees what was contributing to their doing their best work and what was getting in the way of their best work. The consultant then took those themes and reported back to the company leaders, who created task forces made up of employees to help determine how they could best address the identified issues as an organization. “Having the leaders determine how to best address these issues wouldn’t work,” Duke said. “These are themes that were brought up across the organization, and the employees across the organization are the ones that we need input from on how to best solve them.” CONDUCT SKIP-LEVEL MEETINGS If you’re a manager of managers, and you’re concerned that the people who work for your direct reports are having trouble voicing concerns, Scott recommends conducting skip-level meetings once a year to help overcome the challenge of hierarchy. During a skip-level meeting, you meet with the people who work for each of your direct reports to give them an opportunity to give feedback about their boss. The feedback is then compiled and shared collectively with the manager so they know what was said but not who said what. This ensures the team is comfortable criticizing their boss without fear of retribution. “Through this process we get to hear what concerns there are across the organization,” Scott said. “Feedback typically comes back loud and clear through these questions. We can take that feedback and listen to those voices to make changes for the better of the organization.” This process not only helps uncover voices SPRING 2022

from all levels of an organization, but it can also help make your direct reports better managers. During these meetings, you can collect candid feedback on a wide range of issues that can then be used to improve the organization.

oppressive formalities and encourage a free flow of communication. Martin is a big fan of walking meetings, and she has often had her teams walk together from the office to a nearby coffee shop as they discussed both personal and work-related topics.

EXPERIMENT WITH ROLE-PLAYING One way to encourage team members to consider a variety of perspectives and avoid settling on the ideas proposed by leaders is to experiment with role-playing, according to Michael Roberto, DBA, Trustee Professor of Management at Bryant University in Smithfield, Rhode Island, and author of Why Great Leaders Don’t Take Yes for an Answer.

“It was a little bit social, little bit catching up, but if there was anything that was on anybody’s mind, it was a really good time to bring it up,” she said. “The conversation was much more open and didn’t feel like a conference-room meeting — it’s about creating that environment where communication is flowing back and forth among everybody.”

Roberto has done a number of decisionmaking case studies on businesses across industries and has witnessed a few highly effective role-playing experiments that encouraged team members to view issues from fresh perspectives. When one company was trying to decide on a strategic alliance, for example, the CFO had the team role-play the competition, prompting them to consider what the reaction might be if they were to form each alliance and what consequences they might see down the road after doing so. In another exercise, the CFO and other members of the finance team took on the perspectives of marketing, sales, and operations, while marketing, sales, and operations team members looked at issues from a finance perspective. “It got this robust dialogue going, and it opened people’s eyes,” Roberto recalled. “Making people stand in each other’s shoes turned out to be a great way of helping the team understand each other’s perspectives.” Any exercise that encourages team members to consider new perspectives or propose additional options can arguably help reduce the likelihood of echo chambers and increase effective business partnering. GET CREATIVE WITH MEETINGS Holding meetings outside the confines of a conference room can help eliminate

TAKE THE STIGMA OUT OF MISTAKES Everyone makes mistakes, but when employees or leaders try to hide or minimise their blunders, it’s impossible to address and learn from them in a timely manner. “In construction there’s a saying that we love good news, don’t mind bad news, but hate surprises,” Martin said. “Don’t surprise me — 99.9% of the time it can be fixed a lot quicker if we just do it now.” In order to destigmatize mistakes and encourage everyone to speak up about issues, Scott sometimes plays a game she calls “Whoops-A-Daisy” with her team. To play the game, leaders bring a stuffed daisy flower to their next team meeting and share a mistake they’ve made in the past week. Then she opens the floor to the entire team and lets them know that anyone who tells a story gets automatic forgiveness. In Scott’s version of the game, the person who tells the best story, as measured by the level of applause, wins “Whoops” for a week and $20. She explained that the $20 prize is primarily to give team members a reason to play along with her game. And the part where leaders share a mistake of their own is an essential component of the game because the team will feel much more willing to share their blunders once the leader has demonstrated vulnerability. CONTINUED ON ON PAGE PAGE 19 19 CONTINUED

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“Starting this process and getting people comfortable with sharing their mistakes is extremely valuable for creating a culture of feedback and learning,” Scott said. STEP OUT OF THE ROOM It can sometimes make a huge difference when the leader steps out of the room and allows the rest of the team to talk amongst themselves, according to Roberto. If your team seems to have hit a wall, he recommends summarizing the issue, telling them you want some options and an evaluation, and then stepping out of the room for a bit. “Once you’re in the room, the whole dynamic changes,” he explained.

“Stepping out of the room sometimes can be a great way to give people a chance to get their thoughts in order.”

the problem unless you have it all solved,” he said. “That’s terrible because you want people to tell you what’s going on.”

PERFECT YOUR POKER FACE Team members are only going to freely express their opinions if they feel psychologically safe enough to do so, and a key part of achieving that psychological safety is reacting appropriately when people do come forward with a problem or say “no”.

Instead, leaders must do their best to react calmly to bad news and work with their teams to develop collaborative solutions. When you react, consider not only your words, but also your tone and body language.

Roberto stressed that leaders should never tell their employees, “Don’t come to me with problems, come to me with solutions.” “This is horrendous leadership because what you’re basically telling people is hide

“Take a breath before you answer,” Martin suggested. “And then find out why the mistake happened, because it could be that a company process is the problem; but either way, we definitely don’t want people to try and hide issues.”

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BUSINESS AND INDUSTRY 5 steps toward the future of finance Technology underpins finance’s role, but CFOs also need to consider data governance, managing change, and championing the move from cost to value. Editor’s note: The following article is reprinted with permission of the New Jersey Society of CPAs.

BY OLIVER ROWE It comes as no surprise that James Miln, ACMA, CGMA, senior vice president for finance and investor relations at Yelp, the U.S. crowdsourced business reviews publisher, is a tech advocate. On a recent Journal of Accountancy podcast interview, “Why a CFO Needs to Wear Two Hats,” at the end of the Future of Finance Summit in Nashville in December, he said: “Finance needs to have the tools at our disposal to better help make decisions around how we create value, and technology really underpins that.” Miln, who co-presented at the summit and has a CV that also includes stints with Unilever, Yahoo, and eBay, said, “To be a great finance business partner and value partner, we have to understand those technologies.” At Yelp, fundamentally a cloud-based technology company, artificial intelligence and machine learning models are used, he said, to “help us project data on traffic, on

“Finance needs to have the tools at our disposal to better help make decisions around how we create value, and technology really underpins that.”

SPRING 2022

business, on retention, on acquisition that can help inform our forecast models.” He said moving ERP systems to the cloud and connecting it to other applications “where we can get insight into our providers, our customers, our vendors, and what’s going on within the operations of our business” creates opportunity for the business. As well as technology, Miln highlighted four further areas discussed at the summit that finance leaders need to champion. Data governance Miln stressed the critical role of data governance. “When you think about data and this huge amount of data that’s out there, data governance is key,” he said. “From the CFO down, [it’s important to have] a point of view on how we store, use, keep the quality high on the data that we have in the business and understanding … data engineering and data science.” Finance, he suggested, can “own more of that” while looking for opportunities to partner with colleagues working under the chief technology officer or chief information office within an organization. Cost to value When it comes to managing cost, Miln said finance leaders often feel a need “to lead by example and being very careful about the budget and … championing opportunities to save cost.” He added: “But we have to flip that … to value. Let’s move from cost to value.” Trust A “huge part” of Yelp’s customer proposition is about trust, Miln said. “As

a finance leader and as a finance team at Yelp, we have to understand how to value trust,” he explained. There are other elements of the business — such as engagement, employee diversity, inclusion, supply chain, data center environmental impact — that were traditionally viewed as intangible, he said. “Today, we know that people make decisions based on … where the company is on those and how effective we are at managing them and driving value through those. I think finance needs to be a value partner on that journey.” Managing change The summit discussed the difference between managing change that you know is coming and that enforced upon you, such as the global pandemic. Miln said: “Are we ourselves and our teams and our profession, are we training people to have that adaptability almost built in?” He added: “Sometimes when you have a crisis … you’re able to drive change even more effectively and more significantly than you ever thought.” Two hats CFOs need to wear two hats, Miln suggested: “On the one hand, there’s a lot of what we’ve done traditionally that is important and critical to the business and needs to continue around governance, compliance, sort of our stewardship.” But, he said, there is “that other hat, which is about creativity. It’s about the future. It’s about uncertainty, and it’s about embracing that.” Oliver Rowe is a senior editor with The Journal of Accountancy.

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BUSINESS AND INDUSTRY The AICPA CFF® credential is evolving to meet emerging global demands – are you? Editor’s note: The following article is reprinted with permission from AICPA-CIMA.

KARI C. DAY DBA, MSA, CPA, CGMA, FCPA, CFE As CPAs and their clients work through the massive business changes worldwide, they confront a variety of fraud schemes, business continuity issues and damages concerns. Fraud in particular thrives in times of crisis as bad actors take advantage of fear and confusion. Certified in Financial Forensics (CFF®) credential holders have the knowledge and expertise to assist clients during these unprecedented times. The CFF® credential is granted exclusively to CPAs and other recognized equivalents who demonstrate expertise in financial forensic accounting through their knowledge, skills, experience and adherence to professional standards. The CFF® adds credibility and indicates expertise and competency in areas that include: • fraud detection, prevention and response • financial statement misrepresentation • digital forensics • bankruptcy and insolvency • damages calculations and dispute resolution • expert witness services • investigations • family law services NOW IS THE TIME TO UPSKILL Fraud and financial forensics are primary concerns for clients and employers across the globe. With specialized knowledge in fraud matters, dispute resolution, damages calculations, and bankruptcy; CFF® professionals are well positioned to guide businesses through crisis management, recovery of operations, and future preparedness. Earning the CFF® credential demonstrates the knowledge and business acumen of a CPA

or recognized equivalent combined with financial forensic accounting expertise in a day and age where specialized knowledge has never been more critical.

75 CPD requirement for CFF credential applications. 1000 hours of forensic related business experience and passing the CFF exam are also required.

CFF CREDENTIAL ELIGIBILITY REQUIREMENTS To qualify for the CFF® credential, a candidate must:

Start your path toward becoming a CFF® and register for the CFF® Exam today.

• Be an AICPA member in good standing • Pass the CFF® Examination • Obtain 1,000 hours of forensic accounting experience in the CFF® Body of Knowledge within the fiveyear period preceding the date of the credential application • Complete 75 hours of forensic-related continuing professional development (CPD) in the CFF® Body of Knowledge within the 5-year period preceding the date of the credential application • Hold a valid and unrevoked CPA certificate or license issued by a legally constituted state authority or recognized international equivalent There are multiple ways to earn the CFF® Credential. Study for the comprehensive exam using the CFF Exam Review Course or complete the Core and Specialized Forensic Accounting Certificate Programs. Successful completion of both certificate programs satisfies the

Dr. Kari C. Day, CPA | CGMA | FCPA | CFE is an AICPA Senior Manager for the Certified in Financial Forensics CFF® credential. She has earned four professional accounting credentials, a Master of Accountancy degree, and a Doctorate in Advance Accounting Theory with a Focus on Forensics. Kari began her career in public accounting, advancing to Senior Auditor before repositioning into higher education, earning rank and tenure as an Associate Accounting Professor in Oregon. While completing her dissertation on CPA Human Skill Competencies, she hired out as a subject matter expert and consultant for continuing professional education, university accounting programs, and course level editing and design. Kari thoroughly enjoys the creative intelligence involved in conceptual strategies for exemplary global accounting programs and worldwide proficiency for the accounting profession. It is her privilege to collaborate with friends and colleagues to promote forensic accounting awareness around the world.

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Where can an AICPA C redential take your career next? If you have a specialized interest, you can build on the value you offer clients by adding an AICPA advisory service credential: Personal Financial Specialist (PFS ), Accredited in Business Valuation (ABV ), Certified in Financial Forensics (CFF ) or Certified Information Technology Professional (CITP ). These credentials were developed for the profession by the profession. They set you apart, make a statement and get you noticed. And, they can seriously boost your career. ™

© 2017 Association of International Certified Professional Accountants. All rights reserved. AICPA and American Institute of CPAs are trademarks of the American Institute of Certified Public Accountants and are registered in the United States, European Union and other countries. The Globe Design is a trademark owned by the Association of International Certified Professional Accountants and licensed to the AICPA. 23438A-326

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HIGH-TECH SOLUTIONS Does your data tell a story? BY MARC STAUT

When most people think about data analytics, they think about dashboards, spreadsheets and algorithms. While these are all elements of data analytics, they can only take us so far. It’s not enough to simply analyze the data. You need to be able to tell a clear and compelling story with the data. One of the problems people have in leveraging their data is they approach it the wrong way. They do a data dump and see what they find. This is essentially trying to get your data to answer a question you haven’t asked. Here’s a better approach. START WITH A HYPOTHESIS If you don’t start with a hypothesis, data can play tricks on you. You can fall prey to confirmation bias, forget that correlation does not imply causation and succumb to other myths, traps and data fallacies. Instead of starting with a data dump, begin with a question or assumption. For example, you might ask, “Why are our profits down? I think it’s because people are working from home and not as productive.” Then look at the data to see if it supports that hypothesis. If the data shows people are logging more hours working from home than they did pre-pandemic, you might need to come up with a new theory. SPRING 2022

FIND THE SIGNAL IN THE NOISE In data analytics, the signal is what you want to understand. It might be the reason profits are down (or up) or whether you’ll have success promoting a new service line with an email campaign. The noise is everything else that can affect the outcome, and the more data you have, the more noise there is.

book, the gist of the message is that you (or your firm) are not the hero — you’re the guide. If you’re presenting data to a client, your client wants to be the hero of their own story. Craft your story in a way that positions the client as the hero and you as the person who guides them to success, and your story is more likely to land with your audience.

It’s tough to spot the signals if they’re obscured by noise from bad data. No data is 100% perfect. However, taking steps to clean your data by removing anything incorrect, incomplete, irrelevant or duplicated will allow for the highest quality information in your decision-making.

USE VISUALIZATIONS Visual representations of your data and narrative are useful for communicating your story clearly and memorably — especially when speaking to a non-technical audience. Whether you use charts, graphs, diagrams, pictures or videos, choose visuals that make it easier for the audience to understand and engage with the data story.

HAVE A NARRATIVE Once you find an answer to your question, don’t simply present the data to your clients, partners or other stakeholders. Instead, use it to craft a story that communicates insights gleaned from the data, the context surrounding it and the actions you recommend. A powerful tool for storytelling can be found in Donald Miller’s book, Building a Storybrand. While the book is primarily about branding and marketing, its storytelling techniques come in handy in many other situations, including presenting data. While I highly recommend reading the

Data-driven storytelling is a powerful way to communicate complex information, generate buy-in and promote better decision-making. As your firm starts harnessing and using data, don’t waste time, money and energy communicating the wrong things. Start talking about data in a compelling way. and your data will start driving change. Marc Staut is a shareholder and chief innovation and information officer at Boomer Consulting.

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FROM OUR PARTNERS Key differences between a financial advisor and a tax advisor B Y J O E A B E SA M IS, CPA As a CPA, many of my clients come to me for tax and accounting advice. Every now and then, I am asked what I think of their investment portfolio, and how they should be managing their stocks and bonds. For those questions, I reach out to my colleagues, who are financial professionals. Most of them are also Certified Financial Planners. As a CPA who specializes in income tax planning and compliance, I am focused on how to account for my client’s investments on their tax returns, while their financial advisor is responsible for managing their investments. In this article, I’ll explain the differences between a financial advisor and a tax and accounting advisor. To keep it simple, I will focus on the requirements to be a CFP and a CPA. PROFESSIONAL REQUIREMENTS CFPs require a bachelor’s degree or higher. Their exam requirement covers main topics, including: 1. Professional conduct and regulation (8%) 2. General principles of financial planning (15%) 3. Risk management and insurance planning (11%) 4. Investment planning (17%) 5. Tax planning (14%) 6. Retirement savings and income planning (18%) 7. Estate planning (10%) 8. Psychology of financial planning (7%) CPAs also require a bachelor’s degree, and most states require 150 credits to sit for the exam. There are four main parts to the exam: 1. Auditing and attestation a. Ethics, Professional Responsibilities and General Principles b. Assessing Risk and Developing a Planned Response c. Performing Further Procedures and Obtaining Evidence d. Forming Conclusions and Reporting 2. Business environment and concepts a. Enterprise Risk Management, Internal Controls and Business Processes b. Economics c. Financial Management d. Information Technology e. Operations Management 3. Financial accounting and reporting a. Conceptual Framework, Standard-Setting and Financial Reporting b. Select Financial Statement Accounts c. Select Transactions d. State and Local Governments 4. Regulation

“...being a CPA allows me to do one thing that no other professional can do: provide an opinion on a financial statement, including the balance sheet, income statement, statement of cash flows, and related reporting.” a. Ethics, Professional Responsibilities and Federal Tax Procedures b. Business Lavw c. Federal Taxation of Property Transactions d. Federal Taxation of Individuals e. Federal Taxation of Entities KEY DIFFERENCES It’s often a misconception that all CPAs can prepare tax returns. Because of the broad subjects that CPAs study, most specialize in a certain area. For example, my area is tax, but being a CPA allows me to do one thing that no other professional can do: provide an opinion on a financial statement, including the balance sheet, income statement, statement of cash flows, and related reporting. As a tax advisor, I can do advanced tax planning for federal and state purposes, as well as assist with accounting and bookkeeping work. Most firms bill their customers based on 6- or 15-minute intervals for time spent on their return or project. Other firms, like mine, charge an annual fixed fee price for services. A CFP focuses more on the financial plan of the individual, and primarily works in registered investment advisory firms, specializing in investment advisory and financial planning services. They typically charge a percentage based on assets under management. There are RIA firms that also specialize in selling insurance products or specific investments that produce commissions or kickbacks to the advisor. Some other RIA firms will be “fee only” planners, which means they receive compensation solely from the fees that clients pay for their services. A fee-only structure reduces a potential conflict of interest, which is why these types of advisors are often preferable to the commission-only structure. CONTINUED ON PAGE 35

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FROM OUR PARTNERS CONTINUED FROM PAGE 32

WHAT TO LOOK FOR IN A FINANCIAL ADVISOR AND A TAX / ACCOUNTING ADVISOR My focus is on my client’s peace of mind, as it relates to their taxes. I have a financial advisor who I hired to provide me peace of mind, when it comes to my investments. If I were to put myself in a potential client’s shoes, I would want to look for a tax/accounting professional who I can trust and is willing to grow with me. I would also look for a person who has capacity and can call me back if I have a question. But, most importantly, I would say the greatest character trait to look for is empathy. With the rise of technology, we have lost the art of being human. Empathy is a trait that technology can never mimic. As someone who just started my own firm, I believe empathy is the penultimate core value because it’s entirely human. Today, we live in a world where a robot can prepare your taxes, or you can hire a “robo-advisor” to manage your assets, but what we professionals can offer that no robot can is a relationship. I became a CPA because it allows me to be a part of the most intimate part of people’s lives – their finances. I didn’t become a CPA because I just love the Internal Revenue Code. I became

a CPA to have a relationship with my clients. How much people make is normally hidden from their closest friends, but as a CPA, people pay me to be part of their lives and see everything (and I mean everything). I’ve been in meetings with excited newlyweds who are anxious to start their business together, as well as meetings with couples trying to unravel their relationship and separate their assets from each other. There are days I am a cheerleader, and there are days I am the referee. But whether your clients engage the services of a CPA or CFP, the main thing you want to have is the relationship. We navigate the ups and the downs through wherever life takes our clients, so make sure your clients have this trusted relationship. Whether it’s you or someone else, it’s your job to look after the best interests of your clients. Joe Abesamis is a redemptive CPA who exists to redefine the customer’s tax experience through building relationships based on empathy and trust. Find Joe on Twitter at @jbacpa22 or on LinkedIn at LinkedIn.com/in/joeabesamis.

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STATEMENT

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Let us make it simple. Confidentiality

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Kathy Brents, CPA, CBI: 501-514-4928 Christy Hudson, CBI: 501-499-4357 Office: 866-260-2793 kathy@accountingbizbrokers.com christy@accountingbizbrokers.com

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MEMBER NOTES CLASSIFIEDS Jill L. Bachtell and Tyler L. Clugston have been named client relationship managers in the Hagerstown office of SEK. Joseph Belcher, MBA, CPA, has joined Lanigan Ryan, P.C., as a senior accountant. Michele Chalmers, CPA, a principal at CliftonLarsonAllen LLP, has been named managing principal of the firm’s Maryland Office. She will also continue working in her current role as the Mid-Atlantic employee benefit plan leader. Lindsay Dean, CPA, has been promoted to partner with GRF CPAs & Advisors. Sarah Dillow has been promoted to in-charge accountant with Lanigan Ryan, P.C. Lauren B. Frick, MBA, Tyler T. Jaouni, and Juliette M. Wallace have been promoted to supervisor in the Hagerstown office of SEK. Daniel Garcia and Alexandria Ahwee-Marrah have joined Lanigan Ryan, P.C., as staff accountants. Tricia Katebini, CPA, MBA, has been promoted to partner with GRF CPAs & Advisors. Jennifer Montoya, CPA, has been promoted to director with Lanigan Ryan, P.C. Melissa Musser, CPA, CITP, CISA, has been promoted to partner with GRF CPAs & Advisors. Kevin Reitzel has been promoted to senior accountant with Lanigan Ryan, P.C. Sean Scott, CPA, has been promoted to senior accountant with Lanigan Ryan, P.C. Stacey L. Webster has been promoted to controller in the Hagerstown office of SEK.

FIRM NOTES Rockville-based E. Cohen and Company, CPAs has announced a merger with DeVan & Lowery PA, a CPA firm also based in Rockville. The combined companies will offer a more diverse set of services, enhanced staff coverage on client engagements, and greater technical expertise and continued exceptional client service. SEK, CPAs & Advisors has won ClearlyRated’s 2022 Best of Accounting® Award, the second consecutive year SEK has won this award. Award winners have proven to be industry leaders in service quality based entirely on ratings from their clients. SEK received satisfaction scores of 9 or 10 out of 10 from 94% of their clients -- significantly higher than the accounting industry average of 53% in 2021. The firm also received a Net Promoter® Score of 92.5%, approximately 2.5 times the accounting industry average of 38% in 2021.

job openings HIGH QUALITY MID-SIZE TOWSON CPA FIRM seeks motivated professionals with experience in individual or business 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

mergers & acquisitions ACCOUNTING FIRM IN ROCKVILLE, 2 partners, wishes to expand tax and bookkeeping services by merging/associating with another local group for the purpose of sharing expertise and staffing. We use CCH Axcess software, and one partner is a financial advisor, separate from the income tax services. We would consider buying a small practice, as long as there is continuation of a qualified staff person to maintain the business. DIRECT INQUIRIES IN STRICT CONFIDENCE TO Krislyn@macpa.org and reference File No. XXX-10. MARYLAND PRACTICES FOR SALE: gross revenues shown: Bethseda, Gaithersburg, Frederick $117K; Essex $575K; N Baltimore Co. CPA $200K; SE Balt Cnty/Dundalk Area $83.5k; 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.

TAX PRACTICE FOR SALE,

by Rockville CPA. Gross 150K. DIRECT INQUIRIES IN STRICT CONFIDENCE TO Krislyn@macpa.org and reference File No. XXX-O6

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