MACPA’S
STATEMENT October 2013 | Maryland Association of Certified Public Accountants, Inc.
HEALTH CARE:
Big changes for small business PAGE 6
PLANNING FOR PROPERTY TRANSFER IN DIVORCE PAGE 38
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health care reform
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CONTENTS October 2013 | Maryland Association of Certified Public Accountants, Inc.
CHAIR’S COLUMN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 FEATURES Health care: Big changes for small business . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .. . . . 6 Planning for property transfer in divorce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
DEPARTMENTS News & Views . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Business & Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 High Tech Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Tax Corner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Financial Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Professional Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 Member Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
MEMBER NOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 NYPN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 48 CLASSIFIEDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 ADMINISTRATION
PRODUCT DEVELOPMENT
rebekah@macpa.org
DIRECTORS
Amy Stumme amy@macpa.org
Akesha Brown akesha@macpa.org
Donna Lewis donna@macpa.org
Samantha Bowling, CPA
Becky Conley becky@macpa.org
Debbie Zizwarek debbie@macpa.org
Ryan Wey ryan@macpa.org
Shane Grady, CPA
TECHNOLOGY
TECHNICAL SERVICES
Kara King Bess, CPA
Doug Shaner doug@macpa.org
MaryBeth Halpern marybeth@macpa.org
Amy Puente amyp@macpa.org
Joselin R. Martin, CPA
COMMUNICATIONS
Cora Edwards cora@macpa.org
Paige Sawicki paige@macpa.org
Amy Moran amym@macpa.org Bill Sheridan bill@macpa.org FINANCE Margaret DeRoose margaret@macpa.org Laura Swann, CPA lauras@macpa.org
PROFESSIONAL DEVELOPMENT Dee Sullivan dee@macpa.org Pamela C. Devine pam@macpa.org Chris Dougherty chrisd@macpa.org
Meredith Senio meredith@macpa.org Laura Dorsey-Shaner laura@macpa.org Andrew Hood andrew@macpa.org
2013-2014 BOARD OF DIRECTORS
Lisa Cines, CPA
Michael Manspeaker, CPA Amy Myers, CPA Robert Tarola, CPA
SENIOR STAFF
WE WANT TO HEAR FROM YOU! See below to submit content Bill Sheridan MACPA Dulaney Center II 901 Dulaney Valley Road Suite 710 Towson, MD 21204 For content submission: bill@macpa.org feedback@macpa.org P: 410.296.6250 F: 410.296.8713 Toll free: 800.782.2036
MACPA EXECUTIVE DIRECTOR J. Thomas Hood III, CPA tom@macpa.org
OFFICERS
MACPA DEPUTY EXECUTIVE DIRECTOR
MEMBER SERVICES
MaryBeth Drusano marybethd@macpa.org
Byron Patrick, CPA.CITP, MCSE Chair
Julianne Part julianne@macpa.org
Jared Feinstein jared@macpa.org
Jacqueline E. G. Brown jackie@macpa.org
Marianela del Pino-Rivera, CPA Vice Chair
Jeannie Richardson jeannie@macpa.org
Megan Gratz megan@macpa.org
DIRECTOR OF FINANCE AND ADMINISTRATION
Michael Manspeaker, CPA Secretary/Treasurer
Ashlee Stem ashlee@macpa.org
Emily Trott emily@macpa.org
Skip Falatko, CPA skip@macpa.org
Anoop N. Mehta, CPA, CGMA Immediate Past Chair
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 Amy Moran, Advertising Sales
Rebekah Brown
OCTOBER 2013
3
CHAIR’S COLUMN AS CHANGE MOUNTS, YOUR ADVANTAGE AS A CPA IS THIS: YOU’RE FROM MARYLAND BY BYRON PATRICK, CPA.CITP, CGMA, MCSE CEO AND CO-FOUNDER, SIMPLIFIED INNOVATIONS
It’s easy to take greatness for granted when you see it every day, when you live with it and work with it and are friends with it. Make no mistake, though: The Maryland Association of CPAs is a great organization. People throw out that word all too quickly these days – so quickly that it often loses its meaning. Not in this case. You are members of a world-class organization and you need to be aware of that fact, because the people who work there will never say as much out loud. They’re too busy working their tails off to support and protect your profession. But the rest of the world knows. Consider:
HOOD LEADS THE WAY MACPA Executive Director Tom Hood once again has earned a place on Accounting Today’s annual list of the 100 most influential people in accounting, and in a separate survey of the 103 candidates for the honor, Tom was named the second most influential person in the public accounting world, just after AICPA President and CEO Barry Melancon. That means he placed ahead of such luminaries as PCAOB Chair James Doty, FASB Chair Russell Golden, SEC Chair Mary Jo White, and President Barack Obama. Writes Accounting Today, “If there’s a conversation going on about the future of the profession, you’re bound to hear Hood’s name mentioned as one of the people leading the way there.”
CUTTING-EDGE TRAINING Remember the Horizons 2025 project? The one that identified the top skills CPAs will need going forward? Those competencies included things like leadership training,
4
communication, interpersonal skills, strategic thinking, and collaboration. Do you know who provides training like that? The MACPA’s own Business Learning Institute. The BLI has become of the one biggest providers of customized, competency-based learning plans for firms and organizations worldwide, and it’s part of your membership organization. Of course, the core of our professional development programs centers on technical accounting skills, and no one provides them in as many different ways – classroom presentations, live webinars, recorded webcasts – as the MACPA.
XBRL: SETTING THE PACE The MACPA was one of the first non-profit organizations to grasp the importance of eXtensible Business Reporting Language, or XBRL, and to understand that its significance reaches far beyond the realm of public company financial reporting. The association began tagging its own financials via XBRL a few years ago in an effort to increase internal efficiencies. Now, MACPA Finance Director Skip Falatko is working hand-in-hand with representatives of the Financial Accounting Standards Board to develop an XBRL taxonomy specific to non-profit organizations. It’s a perfect example of the MACPA scanning the horizon for weak signals of disruptive change, then figuring out how to position itself and its members to take advantage of that change. It’s an example of why we’re all members of the MACPA to begin with.
WE WROTE A BOOK! By “we,” I mean the MACPA’s chief communication officer, Bill Sheridan. He has been writing for the MACPA’s blog, CPA Success, for more than six years now, and he recently compiled some
of his most meaningful blog posts into a leadership-themed and future-focused book titled, Look, Lead, Love, Learn: Four Steps to Better Business, a Better Life – and Conquering Complexity in the Process. The book is available in both print and electronic formats on Amazon.com.
AND THAT’S JUST THE START I attend a lot of accounting events from coast to coast, and I meet a lot of colleagues along the way. When I tell them I’m from Maryland, the reaction is almost invariably the same: “You’re from Maryland? You guys are doing some incredible things there. I wish our state society was half as innovative as yours.” That’s not an embellishment. It’s the truth. There are lots of CPAs out there who don’t live in Maryland but wish they did, simply because of the work the MACPA does. How do you feel about your association now? And remember this: Participation in the association brings you even closer to that greatness. Standing on the sidelines and watching is good, but getting involved and surrounding yourself with great people, leaders in the profession, elevates your own game. I hope you’ll consider joining us as an MACPA volunteer. There’s a lot happening out there that impacts your business and your clients. I get that. I also know that with every change that arises, your professional association will work tirelessly to protect you and your clients. You live and work in Maryland. You can count on it.
STATEMENT
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More than 25,000 CPA firms depend on the AICPA Professional Liability Insurance Program. Here’s why: • Policy form designed to cover the unique exposures of CPA firms • All size firms and areas of practice are eligible • Premium credits designed to reflect the way CPAs do business • Quality coverage at a price that fits your budget
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H E A LT H C A R E : Big changes for small business A complicated new rating structure is just one of the PPACA provisions that will impact Maryland’s small companies. BY RICHARD PRINCINSKY
Do you own a company in Maryland? Do you have fewer than 50 employees? If so, are you ready for the 2014 wave of provisions from the Patient Protection and Affordable Care Act?
structure. In Maryland, for our small
could not be charged more than $500
businesses, the new rating structure to
per month for the individual rate. The
determine the cost of health insurance will
compression of a 3-to-1 ratio creates less
be based on the age of each individual
of a gap in cost between the younger
employee and dependents enrolled.
person and older person. Therefore, the
That means rates will be based on each
change from the current rates may be
person’s age, not a group’s average age
greater for the younger person than the
and common tier level rate. All employees
older. However, it is yet to be determined
and their dependents with different ages
because the older worker will now be
will have a unique rate.
rated solely on his or her age, without the help of their younger co-workers bringing
With the new rating structure, employers
the average age down. Stay tuned …
will be charged by the insurance company Small businesses that provide health
a monthly premium of the sum of each
If they haven’t already, all employers
insurance to their employees are
of their employees’ uniquely calculated
should put administrative systems in place
accustomed to a very straightforward
rates. Each employee’s unique rate will be
and revise business strategies / plans to
rating structure. It has been relatively
based on his or her age. If an employee
meet the current and ongoing demands of
easy to prepare and project the costs of
would like to include a spouse on the
the PPACA, such as defined contribution
insurance each year.
plan, the cost will be the sum of the two
options. As it stands, if an employer
individual rates based on their ages. The
chooses to offer health insurance through
family plan rate will be the sum of each
the State SHOP Exchange and offers
member’s rate based on their age. For
a monetary contribution to help offset
example, the rate will be comprised of
the employee cost, that amount must
the rate associated with the age of the
be an equal percentage regardless of
employee, the spouse, the oldest three
the different costs for each employee’s
children under the age of 21, and all adult
uniquely calculated rate based on his or
children between the ages of 21 and 26.
her age. This may be a different approach
The cost of health insurance currently depends on the average age of all employees enrolled in the health insurance plan. Once the average age has been determined, insurance companies establish the rates for each tier level of coverage, meaning individuals, individuals plus spouses, families, and all employees pay the same tier rate, regardless of their
than the current method some employers Confused yet?
use to determine contribution amounts.
ages. Now take into consideration the rate Get ready, because this rating structure is
While there have been delays and
structure ratios moving from 5-to-1 to
about to change.
revisions to some of the health care
3-to-1. An example of the current ratio
reform provisions, many remain in effect,
would imply that if the individual group
such as the PCORI fee (an excise tax to
rate was $100 per month for the lowest
fund the Patient Centered Outcomes
average age group in the state, then
Research Institute), elimination of all pre-
the group with the highest average age
existing condition exclusions, employee
Starting on Jan. 1, 2014, under the PPACA, insurance companies must implement a new member-level rating
6
STATEMENT
(F)All Access is a two-day CPE event for CPAs that covers a wide range of topics. In a concentrated time frame, CPAs get “all access” to choose from the courses offered. COURSES OFFERED DURING (F)ALL ACCESS: November 19th 7:30am (pick 1 course)
• Overview of Annual Updates (1FALL1) • Digital note-taking for Business Professionals: Comparing Microsoft OneNote 2010 and other apps (1FALL3) • Taxation for Expatriates: Outbound Tax Issues (1FALL9)
November 19th 11:30pm (pick 1 course)
• Compilation, Review, and Accounting Services (1FALL2) • Cloud Computing - Unraveling the Issues (1FALL4) • Taxation for Foreign Nationals (1FALL10)
November 20th 7:30am (pick 1 course)
• Audit Workpapers: Documenting Field Work (1FALL5) • Microsoft Office 2013 New Features and Windows 8: Making the Transition to your PC or tablet (1FALL7) • Annual Income Tax Update (1FALL11)
November 20th 12:00pm (pick 1 course)
• Fraud in Purchasing and Cash Disbursement Cycles (1FALL6) • Microsoft Excel Hot Topics and Productivity Tips for CPAs (1FALL8) • Estate State Planning for Older Americans (1Fall12)
COST
For more information or to register, call the Member Service Center at 800.782.2036.
MACPA Members Non-Members
$150
$200
EVENT ID
CPE
see above 4 hrs. per course
Register Here: http://cpa.tc/4forFall
Sponsored by:
16 hrs. total
Pay $125 if you register by October 19th.
7
STATEMENT
Oct. 11 webcast offers answers to your health care questions Are your clients asking you what they need to know and do to stay complaint with all the provisions of the Patient Protection and Affordable Care Act? The law is complex and changing, but as a trusted advisor, you need to stay ahead of the questions your clients are asking. Doing so isn’t easy. But help is available. Richard J. Princinsky and Associates – the MACPA’s preferred provider of health care, employee benefit, human resources and wellness services – will bring you up to date and answer all of your questions in a webcast encore of a special health care-related MACPA town hall meeting. The webcast will be held from 8:30 a.m. to 12:30 p.m. on Oct. 11. (17W910) All business managers and employee benefits managers should be taking steps to be sure they are prepared for the PPACA requirements that take effect later this year, in 2014, and beyond. While some requirements vary based on employer size, business entity or type of health plan offered, other requirements apply to all individuals and employer groups regardless of employee size or type of business entity. This special edition town hall meeting will provide participants with the information and resources that will help you make informed business decisions and advise clients related to this evolving legislation. Get details and register at http://cpa.tc/38h.
notice of exchanges, new wellness
with the PPACA will be simplified as
program requirements, and so on. Many
provisions are continually reviewed and
are on the horizon, slated to begin in
implemented in the coming months.
2014, including the implementation of required health exchanges, the individual mandate, non-grandfathered plans that must comply with the annual limitation on out-of-pocket maximums, 90-day waiting period limits, and the requirement
MACPA PARTNERSHIP RJP & Associates, Inc., has been the MACPA’s exclusive preferred provider of employee benefits for more than 20 years.
RJP & Associates’ integrated services include: • strategic benefits planning; • account management and customer service; • claims management;
The RJP team supports the MACPA in
• custom benefits communications;
multiple capacities. As a leading resource
limitations.
for health care reform education and
• group benefit enrollment and billing services;
planning, employee benefits regulatory compliance, and corporate wellness,
• HR and benefits technology solutions;
Employers need to be aware and ready for each implementation round of
the RJP experts offer webcasts; present
health care reform requirements. The
at chapter meetings, town halls, and
wait-and-see approach is not advised.
conferences; and are always accessible
All employers should have a team of
to all MACPA members and clients for
• health care reform education;
trusted advisors, such as an experienced
employee benefits and HR support.
• corporate wellness solutions; and
employee benefits broker, to assist with
Richard Princinsky is president of Richard J.
compliance and implementation strategy.
Princinsky & Associates, Inc.
for all plans to comply with deductible
• client risk management, including HR services and compliance; • HR outsource services;
• retirement services.
Employers can only hope that compliance
8
STATEMENT
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Payroll is a huge business opportunity that’s right under your nose. OCTOBER 2013
ADP is a Premier Bronze Sponsor of the Maryland Association of CPAs. For more information about our member benefit program call 410.933.2181 today!
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| Presented by Jody Padar, CPA, MST, New Vision CPA Group, Inc.
Win the tax season race. is an ideal way to prepare for the tax season rush. It is an extensive seminar covering changes in individual tax law. The event is interactive and features audience participation. Attendees are also provided with an 800+ page manual written by full-time practitioners, a two-hour IRS selfstudy course, as well as dozens of other resources.
December 3 & 4 SEMINAR Event ID: 211001 Cost: Member $350, Non-member $450 CPE: 16 hours tax Early Bird: 11/03/2013
January 7 & 8 SEMINAR Event ID: 211002 Cost: Member $350, Non-member $450 CPE: 16 hours tax Early Bird: 12/07/2013 For questions or for more information, please call the Member Service Center at 800.782.2036.
Sponsored by:
10
STATEMENT
AICPA Women’s Global Leadership Summit
ENHANCING THE SKILLS & POTENTIAL OF WOMEN LEADERS WITHIN THE FINANCIAL COMMUNITY.
macpa.org/womensAICPAsummit
OCTOBER 24 & 25 | WASHINGTON, DC
REAL LEADERSHIP
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NEWS & VIEWS NEWS & VIEWS What challenges are keeping CPAs up at night? FROM THE AICPA What are the biggest concerns affecting
is conducted biennially with results
Some of the key takeaways from the
firms like yours across the country?
categorized by firm size. While each
survey include the following:
size grouping has a unique list of top
• Firms have put the economic crisis
Results of the American Institute of CPAs’
five issues, common elements provide
2013 CPA Firm Top Issues Survey (http://
snapshots of general trends.
behind them. Not only did client retention move out of the top five issues for firms
cpa.tc/37z), sponsored by the Private
with two to five, six to 10, and more than
Companies Practice Section (PCPS),
Client retention, for example, was a
provide the answers.
significant concern for firms in the 2009 survey, during the midst of the economic
21 professionals this year, but fee pressure / pricing and client collections, which
This year, the survey found that greater economic stability has prompted
CBM’S ACEITUNO EARNS BICYCLE COMMUTER SPIRIT AWARD
practitioners to take a longer-term, more strategic view of the most important
said Mark Koziel, CPA, CGMA, the AICPA’s
Robert Aceituno, CPA and tax manager with Councilor, Buchanan & Mitchell, has been presented with a “Bicycle Commuter Spirit Award” by Bethesda Transportation Solutions and the Bethesda Urban Partnership. Given during Bethesda’s annual Bike to Work Day celebration, the award recognizes the most dedicated bicycle commuters in the community. An avid cyclist, Robert was originally motivated to bike the 21.5 miles to work by the traffic congestion. His personal health and fitness goals also played a role in the decision. Since Wahington D.C. and Bethesda are bike-friendly areas featuring numerous paths with scenic views, Robert continues to combine
vice president of firm services and global
exercise with his commute when the weather allows.
challenges facing their firms. Bringing in new clients was cited as an issue by firms of all sizes, and all but the smallest firms were concentrating on finding qualified talent. “The 2013 survey results paint a picture of firms that are poised for future growth,”
alliances. “Practitioners are reassessing where they stand after the recession and preparing for renewed demand.” Using the survey results as a benchmark, CPAs can test their own experiences against those of others and make strategic planning decisions accordingly. “The PCPS CPA Firm Top Issues Survey results present a valuable resource for firms. They help MACPA member firms of various sizes, who are focused on growth, track the issues facing peer and larger firms and anticipate future challenges,” said MACPA Executive Director Tom Hood.
TOP CHALLENGES BY FIRM SIZE The PCPS CPA Firm Top Issues Survey OCTOBER 2013
downturn. Again, client retention was consistently cited across all firm sizes in 2011, but was not among the top five issues for all firm groups this year; it ranked fourth and fifth, respectively, among sole practitioners (http://cpa. tc/380) and firms with 11-20 professionals (http://cpa.tc/381). In the meantime, succession, which only the largest firms chose as a top issue in 2011, has also now become a challenge for nearly all firm segments. To view all the top issues lists for 2013, visit: aicpa.org/pcps.
WHAT THE RESULTS MEAN FOR CPAS
were concerns for many firms in 2011 and 2013, also moved down the list and out of the top five for all firm sizes. • Tax law changes and complexity and workload compression remain burdens for the smallest firms. They are perennially among the top five issues for firms with five or fewer professionals. • Remember when scrambling to find great staff was a major concern? Those days are on the horizon, if not here already. • Firms that have not begun concentrating on their transition to new ownership or
CONTINUED ON PAGE 14
13
leaders would be well advised to do so as
• Consider whether you would make any
• The PCPS Practice Growth and Client
baby boomers head into retirement and
changes in your strategic plans based
Services (http://cpa.tc/383)
as strong M&A activity changes their local
on the survey results. Discuss questions
marketplace.
such as: Is the firm making the most
• Succession Planning Resource Centers
of the new business opportunities that
(http://cpa.tc/384)
• Both large and some smaller firms
may be available now that the economy
are thinking about partner unity and
The PCPS 2013 CPA Firm Top Issues
has stabilized? If not, what changes are
accountability. Many firms weathered
Survey Commentary (http://cpa.tc/385)
needed? Is it time to begin or revisit
the recession by tightening up
includes links to useful tools and a
your succession plans? Will your staff
expectations for partner contributions
discussion of what the trends mean and
recruitment and retention efforts give you
and standardizing their procedures to
how CPAs can respond to them.
a competitive edge in an active hiring
maximize efficiency. Those have turned
market?
The survey results webpage
out to be smart management choices and
(http://cpa.tc/385) provides the top
firms appear ready to stick with them even
As part of your strategic planning, you can
issues lists for various firm sizes, and
though the downturn is over.
turn to a broad range of AICPA and PCPS
indicates the resources that help
resources to help you address all of the
practitioners address those critical issues.
ACTION STEPS FOR SUCCESS
issues identified in this year’s survey. They
How can you put the survey findings to
include:
In addition, the AICPA’s PCPS team has recently launched webpages specifically
work in your practice?
• The AICPA’s Tax Practitioners Toolkit
targeted toward sole practitioners, small,
• Review the results in a partner or
(http://cpa.tc/381)
medium and large firms, so that CPAs
strategic planning meeting. Do they track
• The AICPA’s Health Care Reform
can more easily access resources and find
to your firm’s experiences? Are there any
Resource Center (http://cpa.tc/382)
practice management solutions tailored to the size of their firm.
surprises?
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15
BUSINESS & INDUSTRY Risk management: Executive compensation in tax-exempt organizations B Y DAV E W. RYA N , CPA , CCP, JD Many of your clients give back to the
and maintain appropriate executive pay
measures? Why do you do it?
community by serving as directors of tax-
and avoid the imposition of excise taxes
exempt organizations. To help protect
under the IRS Section 4958 Intermediate
2. Market definition. Define relevant
them from financial and reputational
Sanctions rules.
risk, CPA advisors should make sure their clients are aware that executive
The Intermediate Sanctions regulations
compensation at tax-exempt organizations
make it clear that independent directors
can be a challenging issue.
of tax-exempt organizations can protect their organization and themselves by
peer group, targeted positioning of pay versus the market, and appropriate data sources. If there is a reason to pay higher or lower than the market median for your executives, this is the place to define it. 3. Executive benefits and perquisites
For example, under the IRC Section
establishing and maintaining defensible
4958 Intermediate Sanctions provisions,
rationales for their compensation
directors that approve compensation
programs and by following good
that is found to be excessive can be
governance practices. The key concern
personally liable for a 10 percent excise
that tax-exempt organizations should
tax on the amount of the compensation
address is establishing a “rebuttable
that is deemed to be excessive. Moreover,
presumption of reasonableness” of the
a recipient of excessive compensation is
compensation. To do so, the regulations
Define and document the role of the
subject to a 25 percent excise tax on the
contain the following three key
committee that approves executive
amount of the excess compensation.
requirements:
compensation:
The IRS is continuing its audit focus on
1. Approval of executive compensation
1. The committee must be comprised of
executive compensation of tax-exempt
must be done by an independent board
independent directors.
organizations. In fact, in its Exempt
or a designated committee.
Organizations 2013 Work Plan, the IRS
2. The committee should review
called out a focus on the transparency of total executive compensation and the disclosures in Form 990.
comparable and appropriate compensation data as part of the decision-making process.
Prudent directors should take steps to
3. The final decision and the rationale
protect themselves and their organization
for such must be documented by the
from the IRS Intermediate Sanctions
committee.
as well as public / press challenges to executive pay. In my experience, an organization that clearly defines how and why executives are being compensated and is open and aboveboard with all aspects of this subject is in a better position to defend against not only IRS scrutiny, but that of the press and public at large. So let’s review the key steps directors should follow to establish
16
Directors should typically address four key topics regarding executive compensation: Define and document the organization’s executive compensation strategy, including: 1. Organizational pay philosophy. This is the why and how of what you pay. Do you pay for performance? If so, what are the
approach. Often the perquisites associated with a position draw the ire of people outside and inside of the organization. For example, an executive driving a particularly ostentatious vehicle may be noticed for the wrong reasons.
2. The committee is charged with review of all elements of pay (“total compensation”). 3. The timing and process of compensation and performance reviews (if you have a pay for performance approach) should be considered. 4. Outside advice to be considered: Decide whether to use an independent compensation consultant. Thoroughly document the committee’s decision process and outcomes, including: 1. Date of the decision.
CONTINUED ON PAGE 18 STATEMENT
Celebrate the Profession at the
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A series for financial professionals in Business & Industry
QUARTERLY FINANCIAL
LEADERS
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2. Members’ present and voting results.
salary, bonus and any other cash
independent compensation consultant
3. Terms of the compensation and
payments that may be made.
with the expertise to assist with gathering
benefits decisions.
3. Review executive perquisites and
and analyzing compensation data
benefits.
of comparable organizations and to
4. Review severance arrangements. Again,
actionable advice for Committee
typically issues will need to be resolved
members’ use.
4. Outside advice and details of market comparability data used. 5. Rationale for decisions made. Understand the total compensation package – your process should include: 1. Review and understand existing and proposed employment contracts. Many times significant changes to total compensation can only be affected when a new executive starts or a current contract expires. If there are issues that need to be addressed in this manner, they should be understood by the committee ahead of time. 2. Review cash compensation – base
18
upon a change in employment or with the expiration of a current employment
synthesize complex data into simple,
Dave W. Ryan, CPA, CCP, JD, is managing
contract.
director of CompensationGPS, which aligns
Given what’s at stake, it is important that
methods to attract, retain and motivate the
directors of tax-exempt organizations
right employees. He has more than 25 years of
establish and follow a thorough and
in-depth consulting and corporate leadership
transparent governance process for
experience in the design and implementation
executive compensation decisions.
of compensation, performance management,
Doing so can help mitigate risks for
and benefit programs for a wide range of U.S.
the organization, its executives and its
and global companies across many industries.
pay with company performance and develops
independent directors against the threat of Intermediate Sanctions from the IRS. As part of this process, compensation committees frequently engage an STATEMENT
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BUSINESS & INDUSTRY Integrated reporting: A new reporting model for the 21st century I I RC I N VI TE S C PA S TO H E LP SH A PE T HE F UT URE O F CO RPO RAT E REPORTING There’s a new opportunity for CPAs today,
On April 16, the International Integrated
explaining how an organization creates
and it provides organizations and their
Reporting Council (IIRC) released a
value over the short, medium and long
stakeholders with deeper insights into
“Consultation Draft of the International
term. This new focus encompasses
business operations than past and present
Integrated Reporting Framework.” The
information describing the way in which
corporate reporting models.
draft framework lays out integrated
the organization has used and intends
reporting’s core concepts, guiding
to use the different types of capital, and
Integrated reporting surpasses the
principles, primary elements and,
the interdependencies between those
traditional reporting model by concisely
generally, how organizations will
capitals that influence value creation over
explaining how an organization’s
communicate with their stakeholders.
time. Creating value over the long term
strategy, governance, performance and environment, lead to the creation of value
KEY FEATURES OF THE DRAFT FRAMEWORK
over the short, medium and long term.
As integrated reporting expands its
prospects, in the context of its external
It also meets the increasing demands of investors, who now expect as much information about an organization’s nonfinancial assets and future prospects as they do about financial assets and current and past performance. Integrated reporting represents the next step in the evolution of corporate reporting in United States and global markets. It strongly emphasizes the value of intellectual capital, sustainability, brand and talent.
usually requires that all types of capital are considered. Maximizing one type while disregarding others will not suffice in most cases.
footprint throughout the business community and accounting profession, opportunities ranging from report preparation to consulting services will arise for CPAs in both industry and public accounting. It is, therefore, important to understand what integrated reporting means to CPAs, their organizations and their clients. Here are four need-to-know features of the draft framework: 1. NEW INTERPRETATION OF CAPITAL:
Combining financial and non-financial
Types of capital reach beyond financial to
information into a periodic integrated
also include manufactured, intellectual,
report, it seeks to break down the silos
human, social and relationship, and
that often separate internal departments
natural capitals. A business draws on
or groups and inhibit informed decision
these capitals and enhances, diminishes
making.
or otherwise transforms them as it pursues its objective of creating value over time.
Integrated reporting also elevates
For example, an organization’s financial
transparency about a business’s intangible
capital is increased when it makes a profit,
assets, which have long been under-
and the quality of its human capital is
represented in strategic decision-
improved when employees’ skills are
making and reporting, to a higher
enhanced through training.
level of importance in driving growth, reducing costs and determining future
2. EMPHASIS ON VALUE CREATION:
performance.
Integrated reporting focuses on
20
3. BEYOND TRADITIONAL THINKING: Integrated thinking expands an organization’s focus beyond the traditional. By doing so, it breaks down
CONTINUED ON PAGE 22 STATEMENT
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“silo thinking” within an organization
the process, it helps investors, employees
also on CPAs, so it’s important that our
and allows people to concentrate on the
and other stakeholders understand
members provide their feedback through
relationships between their departments
the different factors that affect the
the Consultation Questions included in
or groups as well as the relationships
organization’s future and the ways that
the Draft Framework,” said Maryland
between the different types of capital the
these factors interact with one another.
Association of CPAs Executive Director
organization uses or affects.
SHARE YOUR OPINION
4. BETTER CONNECTIVITY: Integrated thinking promotes better connectivity of information presented in an integrated report. Information communicated focuses on the complete picture of how the organization uniquely positions its strategy, governance, performance and prospects to create value over time. In
The IIRC is now providing CPAs and other stakeholders with the opportunity to read and assess the draft framework.
Tom Hood. The IIRC plans to issue the initial version of the framework in December. To learn more about the draft framework and obtain additional information on integrated
“The IIRC’s International Integrated
reporting, visit the AICPA’s Sustainability
Reporting Framework will have a positive
Reporting and Assurance webpage (http://
impact not only on businesses, investors,
cpa.tc/37x) and the IIRC’s website (http://cpa.
capital markets and the economy, but
tc/37y).
Because you are trusted.
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BUSINESS & INDUSTRY Management accountants: Delivering value beyond the numbers B Y TH E A I C PA Few organizations, regardless of size
retaining and developing finance
range of activities, making a measurable
or industry, have escaped the shadow
employees with such an in-demand
impact on executive decisions,
of uncertainty that has long hovered
combination of skills.
performance and competitive position.
over the business community. This
Whether managing risk across a portfolio
uncertainty has exhibited itself in ways
Management accountants – specifically,
of projects, formulating strategy or
ranging from intensified competition
those awarded the Chartered Global
initiating and leading innovation and
and market volatility to complex
Management Accountant (CGMA)
change, management accountants are
regulatory requirements and widespread
designation – are setting themselves apart
helping finance departments more
digitalization.
from other professionals in fulfilling this
proactively respond to leadership’s call for
unmet need. With their proven talent in
deeper, more hands-on collaboration and
In spite of the inherent challenges of this
both financial and management areas,
partnership.
environment, a re-engineered formula
coupled with their business acumen,
for organizational success has emerged
management accountants are advancing
Further building management
and finance teams are transforming and
into key advisory roles that are critical to
accountants’ value is a skill set that
reenergizing themselves in its wake.
operations and strategy. In the process,
extends beyond domestic operations.
BRIDGING THE TALENT DIVIDE The finance team’s evolving remit is largely due to its greater role as a trusted
they are filling a talent void that, if not met, could undermine sustainable growth
“Management accountants and CGMAs
and progress.
are also making tremendous contributions to global and non-U.S. operations,
“As senior leaders continue to look
especially in long-term strategic planning,
to finance departments for insightful
short-term business planning, and
management advice and direction,
monitoring and control,” said Hiroshi
opportunities will grow exponentially
Miyamasu, CPA, CGMA, finance director
for CGMAs to prove their value to
at Nike Japan. “Among the benefits of
organizations, both in the U.S. and
their strengthening, multifunctional role
abroad,” said Michael R. Nall, CPA,
has been a measurable improvement to
making insights.
CM&AA, CGMA, founder of Alliance
the top- and bottom-lines at a time when
of M&A Advisors. “Among the ways
organizations of all types need to be at
A study by the American Institute of CPAs
CGMAs can ensure that their expanded
their competitive best.”
and Chartered Institute of Management
new role will endure in the years ahead
Accountants titled Rebooting Business:
is to reach out to fellow members of the
As the new business mandate moves
Valuing the Human Dimension (http://
CGMA community to share best practices,
beyond core financial accounting skills,
cpa.tc/38l) supports business savvy’s more
and participate in programs that can
management accountants are using a
prominent footprint in corporate America,
further develop their skills, expertise and
wide range of financial processes to
with non-financial senior executives stating
leadership perspective.”
move business operations forward. The
partner with senior leadership and the higher demand for a specific combination of skills needed to guide the organization. Key decision makers are looking for financial professionals who combine analytical and financial expertise with strategic, management and decision-
that 68 percent of the value provided to
following examples underscore some of
the organization is non-financial.
REDEFINING CAPABILITIES AND CONTRIBUTIONS
However, according to Deloitte’s 2013
Similar to many of their peers from other
Global Finance Talent Survey (http://cpa.
leadership disciplines, management
tc/38m), there is growing concern among
accountants’ contributions span the full
many finance executives over recruiting,
24
the diversity of their responsibilities: • Providing non-financial information and analysis of Big Data. • Advising on internal and external drivers of cost, risk and value. STATEMENT
• Performing rigorous analysis of the data
are allocated.
group responded that it was equal
leading to performance improvements.
Management accountants are increasingly
to or greater than other parts of the
• Sharing insights into product, sector and
preparing and being recognized for their
customer profitability to determine the
expanded organizational role at a time
success of marketing efforts.
when their contribution is strongly felt at
• Driving cost-reduction strategies within
all levels. According to a CGMA survey,
organization.
BUILDING A SUSTAINABLE MOMENTUM
New Skills, Existing Talent, 75 percent
Looking ahead, management accountants
of global finance executives reported
will further identify new opportunities to
that when finance professionals support
broaden their scope of responsibilities,
management, the organization better
grow their capabilities and deliver even
meets its objectives. In fact, there are few
greater value. The result will be an
• Helping to ensure that remuneration
innovative organizations today that are
organization that not only maximizes and
policy supports long-term value creation.
genuinely successful without the influence
benefits from the full potential of the
• Leading the identification and
of management accountants and other
finance team but is also poised for long-
assessment of new business opportunities.
finance professionals.
term success.
• Developing financial awareness and
The New Skills, Existing Talent survey
Access additional valuable resources and
also provides insights into management
information on this topic and more at
• Monitoring how organizational
accountants’ potential influence on future
CGMA.org.
groups attain goals and contribute to
leadership initiatives. When finance
performance.
professionals and business managers
finance and throughout the organization. • Setting objectives to ensure that the business is run in the long-term best interests of stakeholders.
expertise within the organization.
• Ensuring that goals are shared across the business and appropriate resources
were asked whether finance provided an appropriate training ground for future business leaders, the majority of each
Not a designation holder? Find out more about the designation and eligibility requirements at cgma.org/ BecomeACGMA.
HIGH-TECH SOLUTIONS Technology accelerates niche growth B Y L . G A RY B OOM E R Growth typically requires both
business plan and projections. Too often,
team approach to meet the expanding
entrepreneurial and managerial skills. The
these are little more than a spreadsheet
requirements. Broader scope often
majority of CPAs are more skilled in the
estimating hourly rates and the number of
requires additional internal or sourced
management area than entrepreneurship.
hours utilized.
resources.
and grow through innovation and
More important is a business model and
Lisa Gansky, the author of The Mesh,
learning. The end result is a new kind
platform focusing on client dangers,
coined the term “mesh.” It is appropriate
of collaborative accounting where
opportunities and strengths. The pricing
for an accounting market in which leasing
technology plays an important role – the
strategy should be value-based rather
rather than owning is appropriate for firms
accelerator.
than hourly and the business model
and their clients. The rugged individual
should be collaborative. In order to
approach typically results in less-than-
How well do you know your clients
be collaborative, the platform will be
optimal results for the client in the areas
and prospects? Do you use the data
typically cloud or software as a service-
of strategic planning, budgeting, cash
to market and differentiate your firm?
based rather than traditional client server
flow, human resources, technology and
Marketing trumps facts when it comes
architecture.
talent development. Properly naming,
With both skills, firms can reduce risk
to sales. Great companies and firms
packaging and pricing these services
are using data mining and business
3. LACK OF KNOWLEDGE
intelligence to increase their market share.
Firms too often lack knowledge or ignore
satisfaction while increasing firm revenue
You are the trusted business advisor
important data regarding client needs
and margins.
with relationships and have access to
other than from an accounting and tax
important and accurate data. Are you
perspective. While tax and accounting are
leveraging these relationships and market
important, they are only part of the client’s
5. TRADITIONAL ACCOUNTING FIRM MANAGEMENT METHODS
intelligence for the benefit of your clients
requirements.
Most firms have focused on
and to your firm’s advantage? Or are you
can result in extreme client savings and
independence rather than advocacy. Both
simply too busy charging hours to notice
The CPA is the most trusted business
values are important depending upon the
the less commoditized opportunities?
advisor and must think like a quarterback
type of service being offered. Continual
rather than a defensive lineman or safety. There are five significant traps that firms
commoditization in the audit and tax
There are many higher value-added
often fall into when trying to enter a new
compliance areas is forcing firms to look
opportunities beyond the transactional
or expanded niche with new innovation:
at margins and rethink service offerings.
services that firms can offer. This requires
The charge-hour mentality also challenges
a process of communication to identify
good business thinking.
1. LACK OF FOCUSED LEADERSHIP
and package services beyond tax and accounting
Firm leaders are often distracted with existing responsibilities and try to develop
With the right business model and platform, firms can increase both revenues
Some professionals are comfortable with
and margins. Unique processes and
the new services on a part-time basis. If
change while others resist. Is your firm
a hosted platform make the services
the niche is a priority and part of the firm’s
missing viable opportunities because you
scalable and address client requirements.
strategic plan, then adequate resources
haven’t named, packaged and priced
The most profitable firms focus on selling
including firm leadership should be
services to meet client needs? These
consulting services, even to assurance
allocated accordingly.
opportunities may also require different
service clients. There are of course some
skills and delivery personnel.
limitations based upon independence
2. THE ALLURE OF A PLAN VERSUS A BUSINESS MODEL AND PLATFORM
4. “JUST DO IT” ATTITUDE
Conventional wisdom typically includes a
over. Today’s client services require a
26
requirements.
The day of the rugged individualist is
CONTINUED ON PAGE 29 STATEMENT
We couldn’t do everything that we do for our members without our
Preferred Providers & Premier Sponsors MACPA PREFERRED PROVIDERS
MACPA PREMIER SPONSORS
For information about sponsoring MACPA programs or to learn more about advertising with the MACPA please contact Andrew Hood at 443.632.2323 or andrew@macpa.org
The CPA Event of the year. 6.16.2014 macpa.org/summit
INNOVATION SUMMIT Promoting and Protecting CPAs in Maryland
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THE CURRENT ENVIRONMENT AND OPPORTUNITIES The tools and climate are right to change industries, professions and the world. Technology can be disruptive. The “trusted business advisor” status requires collaboration, creates value,
the additional services in a particular priced and grew the service. To remain competitive they focus on innovation.
resources.
In practice, we see four primary resources
• Proven track record.
and typically is based upon a fixed
1. A champion with passion.
creation agreement” improves cash flow
• Access to internal and external • Politically connected.
requires scope and pricing in advance,
protect the client and the firm. The “value
• Team builder who is a multiplier leader.
REQUIRED RESOURCES that dictate success:
monthly fee with change order clauses to
beyond personal gain.
niche. They learned, adjusted, packaged,
• Passionate.
2. Existing clients who need the services.
WORDS OF WISDOM Those with passion do, while those
3. A unique ability team to service the
without passion try. Remember Charles
and addresses workload compression, if
clients.
properly managed.
4. A technology platform that supports collaboration.
Kettering’s law on committees: If you want to grow an idea, keep it away from committees. Success requires leadership
You must think more like a lean startup than a traditional CPA firm. The service
We will only focus on the characteristics
life-cycle has multiple phases. You should
of the champion who reduces risk and
start with the vision of your market,
develops a profitable service. The
experiment, and learn as you progress.
characteristics are as follows:
and a unique ability team. L. Gary Boomer is CEO and senior consultant of Boomer Consulting, Inc.
Most successful firms admit they got • Level 5 leader with a purpose and vision
Revamped:
their start from a client that requested
NEW speakers, NEW tech strategy sessions, NEW tech budgeting sessions 2013 MACPA Technology Conference 11/4/13 • Martin’s WesT • Event ID: 121009 • macpa.org/techconf Helping CPAs use technology for better accounting practice.
Sponsored by:
OCTOBER 2013
29
HIGH-TECH SOLUTIONS The dollars and sense behind CPA mobile websites B Y M A D I SO N M IN E R As a CPA in Maryland, you’ve probably
the Internet. Mobile websites are the new
powerful tool to grow your client referrals.
noticed how attached your clients are
vehicle for web browsing.
A mobile website should capitalize on this
to their mobile phones. Busy consumer
When you make the move to go mobile,
by integrating with all social networks.
and business clients rely on their phones to communicate and search for local businesses any spare moment they can find. Mobile phones are ingrained into our daily lives, and the rise in mobile usage is projected to continue. With mobile web traffic set to increase
consider the following tips to make your site interactive for your clients: • CALL WITH ONE CLICK. It’s important to make it easy for mobile users to contact you. The goal is to turn a search into a client. And the simplest way to do this is to enable a “click to call” function on the
• STREAMLINE. Many of the flashy design tricks, heavy text blocks, and oversized graphics that work for a desktop site will not serve you well on mobile. In fact, they may take so long to load that you lose customers – if they load at all. The design and content should remain brand consistent but be
2,600 percent in four
accessible and easy to
years, CPAs need to
find. No pinching and
consider how a mobile
zooming required.
world affects their • MORE THAN
business.
NUMBERS. You are Consider this: 95 percent
the cornerstone of your
of mobile users search
business and your most
for local businesses.
valuable asset. You
Put simply, if you’re
want to foster trust and
not adjusting to a
be approachable. Your
mobile world, you’re
mobile website should
losing business. This
clearly show who you
is especially true for
are and why you should
professional services
be trusted with a client’s
because your clients (or potential clients) will be making a decision about your credibility based on your web presence. In fact, 40 percent of smartphone users switch to competitors after a bad mobile experience. The last thing you want is another roadblock between you and your clients. So, can your mobile customers view your webpage on a small screen? Customers today expect websites to be mobile friendly and easy to navigate with their fingertips, without having to pinch and zoom. And with mobile browsing speeds getting faster, the desktop computer is no longer the access point to
finances.
mobile site. This is also true for contact pages. These should be simple and built for hassle-free touch screen navigation to help capture incoming business. • GUIDE THEM TO YOUR DOOR. Your website should sync with mapping features such as Google Maps so that a user can find you in a search and get directions from their current location. • SOCIALLY SMART. If you have carved out some time to create a blog or social media presence, incorporate that on your mobile site. These mediums give you an outlet to engage existing and new customers. Not only that, social media is a
Once your mobile site is up and running, you will see more traffic from search engines via smartphones, and have more of those searches lead to new clients. It’s a mobile world, which is an advantage to CPAs who seize the opportunity to stay connected. Madison Miner is CEO of WompMobile, a Bellingham-based company that converts regular websites to mobile ready, making them accessible and searchable on smartphones. For more information, visit www.wompmobile.com or e-mail madison@wompmobile.com.
The CPA profession is built on ethics. It’s ethics that provide a CPA’s clout and professional purpose. MACPA.ORG/ETHICS
What you need to know: Maryland CPAs are required to take 4 hours of ethics as part of the minimum 80 hours to qualify for license renewal. This is the only subject requirement for CPE. No carryover is allowed. The ethics CPE requirement does not apply to inactive licenses. The requirement for new licensees begins in the first two-year license term after initial renewal.
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TAX CORNER Six ways the IRS uses information statements for compliance T H E IR S I S L E V E R A GIN G D ATA A N D D E VE L O PIN G IN ITIATIV ES TO A U TOMATICA L LY MATCH INFO R M ATI O N Editor’s note: The following article was published in June 2013 in the AICPA CPA Insider e-newsletter. It is reprinted with permission. BY JIM B UT T O N O W, C PA , C IT P The IRS estimates that employers,
Testifying before Congress on April 9
individuals and businesses. Here’s how
businesses, financial institutions and
(http://cpa.tc/37p), former acting IRS
several of the programs work:
other payers will file almost 2.3 billion
Commissioner Steven Miller provided
information statements (http://cpa.
a prospective on how the IRS views
Individual Automated Underreporter
tc/37m) for 2012 to report income
information reporting for compliance
(AUR) program: You’ll know this matching
and financial transactions to the IRS.
enforcement.
program by its primary notice: CP2000, Notice of Proposed Adjustment for
Individuals and businesses use this information to help prepare accurate tax
“It will be interesting to see what some of
Underpayment/Overpayment. IRS systems
returns. The IRS uses this information to
the reporting that (lawmakers) have given
automatically send this notice when items
address the $450 billion annual loss in
(the IRS) will do to the tax gap in the next
reported on Form 1040 returns don’t
taxes due to taxpayer underreporting,
couple of years – the foreign account
match information reported to the IRS
non-filing and underpayment.
reporting, the credit card reporting, the
by employers and other payers. The first
basis reporting. Those are going to be
round of these notices arrives just after
interesting things that should make us
Thanksgiving, and the second round
much more efficient,” Miller said.
arrives toward the end of the next year’s
IMPORTANCE OF INFORMATION STATEMENTS TO COMPLIANCE EFFORTS Every year, an IRS Oversight Board survey (http://cpa.tc/37n) studies factors that influence taxpayer voluntary compliance. Consistently, the survey results indicate that the second-most compelling factor holding taxpayers accountable to accurately file and pay their taxes, behind personal integrity, are third-party information statements. This ranks even higher than fear of an IRS audit. As the IRS faces reduced budgets and personnel, its use of information statements is a cost-effective, high-touch strategy to hold taxpayers accountable. In information-matching programs, IRS systems detect inconsistencies between third-party information statements and taxpayer data, and the taxpayer receives a notice. In 2012, information-matching programs (http://cpa.tc/37o) were the only major compliance initiatives to increase enforcement revenue.
32
filing season. Miller also made clear that the IRS places a premium on the technology resources
The CP2000 notice has been a mainstay
needed for information-matching
of IRS information reporting for decades.
programs.
In 2012, the IRS issued more than 4.5 million CP2000 notices, with an average
“If you were to ask me, ‘If you had
of $1,572 in additional taxes owed
one last dollar … and that dollar was
(http://cpa.tc/37q).
for bodies or for IT,’ I would take it for IT, because that is the lifeblood of our
Business Underreporter (BMF-
efficiency,” Miller said.
AUR) program: Many taxpayers and practitioners think the IRS matches
The IRS will continue to develop initiatives
income reported under business Employer
in this area. For example, in 2012, the IRS
Identification Numbers to business
expanded its under-reporter matching
returns. However, until September 2012,
programs to businesses. The IRS is
the IRS conducted business matching only
setting the stage to use technology and
in audits. The IRS is in the preliminary
information statements to address the
stages of a program that matches
most egregious under-reporters: small
business income against filed Forms
businesses.
1120, producing a new automated notice:
HOW THE IRS ALREADY USES INFORMATION STATEMENTS
CP2030, Initial Notice Issued to Request Verification for Unreported Income, Deductions, Payments and/or Credits
There are a variety of existing IRS
on BMF Income Tax Returns Matched to
information-matching programs for
Payer Information Documents. STATEMENT
Form 1099-K merchant card transaction matching program: In 2012, the IRS started receiving Forms 1099-K reporting merchant card transactions, and the IRS quickly began using this information to match against business returns. However, because businesses do not specifically report merchant card transactions as separate line items on business tax returns, the IRS can only infer potential underreporting. For example, if a business has a disproportionate amount of cash to credit / debit card sales, based on its line of business, the IRS may look closer. These kinds of mismatches have led the IRS to develop compliance initiatives, including “soft” notices requesting explanation and mail audits requesting documentation.
appear to make up the majority or
The IRS also uses information statements
even exceed the total business receipts
to investigate non-filers. These inquiries
reported on the return. In these cases,
are called taxpayer delinquency
the IRS perceives that the business is
investigations (TDIs), in which the IRS
underreporting cash sales due to the
Collection function pursues potential non-
disproportionate share of merchant card
filers who don’t respond to delinquent
payments. Accrual-basis taxpayers and
return notices. At the end of 2012, 3.9
e-commerce businesses whose receipts
million TDIs (http://cpa.tc/37s) were in
do not neatly match merchant card
progress.
transactions are likely early targets in this
HOW THE IRS WILL EXPAND ITS USE OF INFORMATION Automated substitute for return program: STATEMENTS program.
According to the 2006 Tax Gap Study, the U.S. Treasury loses $28 billion (http:// cpa.tc/37r) annually due to taxpayers who don’t file their returns. When a taxpayer does not file and the IRS has information statements indicating a filing requirement, the IRS uses the data to file a return on behalf of the taxpayer
The IRS is in the learning stages of developing the Form 1099-K matching initiative. Many initial notices indicate that the IRS is focusing on under-reporting cases in which merchant card payments
l aw ye rs
if there is a projected balance owed. In 2012, the IRS used information statements to file 803,000 returns for taxpayers, totaling $6.7 billion (http://cpa.tc/37q) in additional taxes owed.
C PAs
Congress has expanded the IRS’s reach to access more information to enforce compliance and implement new legislation. Here are two examples: Under-reporting of foreign income: According to a 2009 TIGTA study, annual losses to the U.S. Treasury due to international under-reporting could be as high as $123 billion a year (http:// cpa.tc/37t). To combat that loss, the IRS is implementing the Foreign Account Tax Compliance Act (FATCA) to receive information on foreign accounts. In 2014,
2013 A dva n c e d Tax I n st i t u t e M a st e ri n g th e Complex m ac pa . o rg/ at i
A dva n c e d T a x In st i t u t e
S p o n s o re d b y :
Monday, 11/18 • Current Tax Issues & Business Tax Update • 121002 Tuesday, 11/19 • Estate Planning Issues • 121003 Wednesday, 11/20 • State & Local Tax Issues • 121004 Thursday, 11/21 • Real Estate & Partnerships • 121005 OCTOBER 2013
33
the IRS will have the ability to match
proposed in IRS Notice 2012-32, in 2015,
A recent Government Accountability
taxpayers’ returns against the information
the IRS will also receive information from
Office study (http://cpa.tc/37w) showed
it receives on U.S. taxpayers with accounts
health insurance companies (http://
that the IRS spends $267 million on under-
at foreign financial institutions. The IRS
cpa.tc/37v) on employee coverage,
reporter matching programs, compared
will likely scrutinize taxpayers who have
including the name and identifying
to the $4.2 billion it spends on audits. Automated information-
not filed the required
“If you were to ask me, ‘If you
matching programs return
Financial Assets.
had one last dollar … and that
revenue than audits.
Affordable care act
dollar was for bodies or for IT,’
With fewer IRS agents
I would take it for IT, because
the IRS will increasingly
that is the lifeblood of our
matching programs that
Form 8938, Statement of Specified Foreign
compliance: As the Patient Protection and Affordable Care Act (PPACA) becomes fully implemented in the next
and reduced budgets, rely on technology-driven use hundreds of millions
efficiency,” Miller said.
several years, the IRS will
almost six times more
of information statements – and growing.
start using information statements for individual
information of the employer. The IRS
and employer compliance with PPACA
can use the information to identify and
Jim Buttonow, CPA/CITP, is cofounder of
mandates. In 2012, employers reported
penalize individuals and employers for
Beyond415. He has more than 26 years of
the value of employer-provided health
noncompliance with PPACA mandates.
experience in IRS practice and procedure. Reach Jim at JButtonow@Beyond415.com.
insurance (http://cpa.tc/37u) on Forms W-2 to inform taxpayers of the value of their health insurance coverage. As
THE FUTURE: COMPLIANCE ACHIEVED THROUGH BIG DATA
BLI e press L E A D E R S H I P
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TAX CORNER How does a business figure out who can be an independent contractor? B Y E DWA R D E. SH A RKE Y, E SQ .
Would you like to save a client from liability for significant penalties?
case, the court held that the dancers
The next time you hear a client say it need
The following facts were enough evidence of control:
not withhold employment taxes because its workers are independent contractors, ask what criteria they used to classify the workers. Businesses do not have discretion to decide that a worker is an independent contractor. Instead, a variety of state and federal laws establish tests for determining which workers are employees and which can be classified as independent contractors for particular
were employees for whom the business was required to make unemployment insurance contributions.
1. THE BUSINESS SET RULES FOR THE DANCERS. 2. RULE VIOLATIONS WERE PUNISHABLE BY FINES AND TERMINATION. Numerous factors are relevant to assessing the level of control. Guidance issued by the IRS (Available at: http://
purposes.
tinyurl.com/bg6wcrv), for example,
A recent case (http://tinyurl.com/
jurisdictions and agencies, such as
bjb9dbh) from Kansas reminds us that
Maryland’s Department of Labor (http://
getting the classification wrong affects
tinyurl.com/atr69h5), identify criteria, in
more than just tax liability. It affects
addition to control, that are relevant to
requirements for wages, worker’s
the classification of workers.
compensation insurance, retirement
lists 20 factors to be considered. Some
benefits, and health care.
In any case, properly designating a worker
The case concerned a business that
reason, and because the test for who is
classified exotic dancers as independent
considered an independent contractor
contractors. One of the dancers filed
varies depending on the jurisdiction
for unemployment benefits. Eventually,
and law in question, clients need to
her claim made its way to the Kansas
review their designations carefully, and
Supreme Court. The court assessed the
potentially with counsel, before they
parties’ relationship under the law of its
become the target of a state or federal
state.
investigation.
In Kansas, as in most other states, the
Edward E. Sharkey focuses on business law
critical factor in determining whether a
and litigation in Bethesda, Md. He can be
worker is an employee or an independent
reached at esharkey@sharkeylaw.com or www.
contractor is the business’s right to control
sharkeylaw.com.
requires a fact intensive inquiry. For this
the worker and his or her work. In this
OCTOBER 2013
35
FINANCIAL PLANNING Recognizing insolvency under the Bankruptcy Code and its impact on the CPA-client relationship B Y S U SA N J A F FE ROBE RTS In difficult economic times, it is important
In addition to book value, expert
As a CPA, you may wonder how your
for a CPA to recognize the signs that
opinions, appraisals and the company’s
client’s insolvency impacts you. Two
a client may be insolvent within the
actual operating experience will be
common issues may arise: first, the ability
meaning of the United States Bankruptcy
considered in this determination. To
to retain payments the client has made
Code, 11 U.S.C § 101, et seq.
determine the fair value of a company
within the preference period, and second,
on its “deathbed,” the court will apply a
the ability to continue to provide services
For a CPA, an insolvent company simply
liquidation test in which the value of the
to the debtor and to be paid for those
has a negative net worth. Total liabilities
debtor’s assets is the aggregate price
services after the petition is filed.
exceed total assets, resulting in a situation
the assets would fetch at a liquidation or
in which the client is “insolvent on
distress sale. Only after the fair value of
PREFERENCES
the books.” A company that is simply
the company is determined will the court
insolvent on the books may not, however,
Under the code, an entity is presumed
apply a balance sheet test to determine
be insolvent under the code.
to be insolvent during the preference
whether the company was insolvent or
period, the 90-day period prior to the
not.
filing of the petition. Upon filing, all assets
INSOLVENCY UNDER THE CODE Under the code, a corporate business
To be clear, a company may be a going
debtor is insolvent when its “financial
concern and still be insolvent under
condition (is) such that the sum of such
the code. Moreover, a company may
entity’s debts is greater than all of such
file a bankruptcy case to restructure its
entity’s property, at a fair valuation …” 11
liabilities, but not be insolvent under the
U.S.C § 101(32). Thus, while book value
code.
may be indicative of insolvency (since a company’s financial statements are often analyzed based upon historic information) and may be based upon acquisition costs and applicable depreciation, book value as reflected in a company’s financial statement is not sufficient alone to demonstrate a company’s insolvency under the code because it does not represent the actual fair market value of
If a client entity is insolvent on the books, a CPA should look for signs that the entity is insolvent under the code. Classic red flags include the failure of the company to pay its debts as they come due in the ordinary course of business, lack of liquidity, acquisition of new debt solely to pay existing debt or the securitization of previously unsecured debt, transactions
the company.
that leave the company undercapitalized,
A different analysis applies depending
obtain new credit, credit relationships
on whether the company is a going
that convert to cash on delivery, lawsuits
concern for bankruptcy purposes or on its
and judgments, decreased sales, and
“deathbed” – that is, in such a precarious
higher percentages of aged receivables.
financial condition that liquidation is
If signs of code insolvency exist, the CPA
imminent when a bankruptcy petition is
should consider whether the distressed
filed. Fair value will be determined by
client may need to take steps to facilitate
the fair market price of the debtor’s assets
a turnaround, including as an option,
that could be obtained if the company
consulting an attorney regarding the
were sold to a willing buyer in a prudent
filing of a bankruptcy case to assist in
manner within a reasonable time to pay
the reorganization process before the
the debtor’s debts.
company ends up on its deathbed.
failure to pay tax liabilities, inability to
of the entity become part of the debtor’s “estate,” which consists of all legal and equitable interests of the debtor – that is, assets in the debtor’s possession, as well as assets of the debtor in the hands of others, as well as the debtor’s claims and causes of action. Based upon the code’s prime policy of equality of distribution, the debtor (or a court appointed trustee) may seek to bring payments made to creditors during the preference period back into the estate to be part of the assets to be distributed, pro rata, to creditors. If the CPA has received payments on fees from the bankrupt entity in the preference period, those fees are potentially recoverable for the estate, unless certain affirmative defenses apply to preclude recovery. For a CPA who has maintained a regular billing and payment relationship with the client throughout the preference period, preference claims may be defended on the grounds that the payments were made in the ordinary course of business between the client and the CPA. Additionally, while the debtor entity will be presumed insolvent during the preference period, a preference claim will
Because even
WHIPPERSNAPPERS need to plan their future.
28TH ANNUAL
ADVANCED PERSONAL FINANCIAL PLANNING CONFERENCE October 25, 2013
Martin’s West, Baltimore
macpa.org/PFP
Event ID: 121007
sponsored by:
be dismissed if the debtor is shown to
and be paid just as before the bankruptcy
have been solvent during the preference
filing.
period. The CPA may also have other
If the CPA’s post-bankruptcy services are
defenses to preference claims, of which defense counsel may advise.
GETTING ENGAGED AND PAID AFTER YOUR CLIENT FILES FOR BANKRUPTCY
expected to be more extensive and to be a significant but necessary cost to the debtor’s estate, the debtor may need to obtain permission from the court to engage the CPA. Then, the CPA cannot be paid for his services without the court’s
post-bankruptcy engagement. If your client needs to file a bankruptcy case, be sure to communicate with the client’s counsel. If you are providing post-bankruptcy services, it is important to work with the debtor’s counsel to ensure you know your status, whether as an ordinary course professional, or as a professional engaged by the debtor’s
Once a bankruptcy petition is filed,
approval for the engagement. The motion
your client may need your services as
seeking authority for the bankrupt client
a CPA as much, or more, than prior
to engage the CPA must be accompanied
to its bankruptcy. The bankrupt client
by the engagement letter and the fee
may need to provide various kinds of
structure, usually hourly rates, must be
budgets, projections and forecasts to
disclosed.
1. For bankruptcy purposes, a “going
of cash subject to secured creditors’
Subsequently, the CPA must submit an
under generally accepted accounting
liens, and to support the confirmation
application to the court for approval for
principles. Rather, in bankruptcy, a “going
of a plan of reorganization. If the usual
fees incurred to be paid. The application
concern” is a commercial enterprise
services are provided and are part of the
must be detailed and include descriptions
actively engaging in business with the
debtor’s normal operational budget, the
of the services performed and the time
expectation of indefinite continuance.
CPA may be paid as an ordinary course
spent on the services. In some cases, if
professional, after being approved for
you have invoices from the preference
Susan Jaffe Roberts is a partner with the
such a designation by an order of the
period that remain unpaid by the client,
law firm of Whiteford, Taylor & Preston, LLP.
court. As an ordinary course professional,
you may need to waive payment of those
Her practice focuses on bankruptcy, complex
the CPA would invoice the client entity
invoices in order to be approved for the
litigation, accountant malpractice claims, and corporate issues.
the court to support requests for use
OCTOBER 2013
estate who is subject to the approval and fee application process.
FOOTNOTE concern” valuation is not the same as
37
FINANCIAL PLANNING Tax and financial planning for the transfer of property in divorce B Y A L A N Z I P P, CPA , ATTORN E Y The U.S. Supreme Court recently ruled
property, and (3) equitably allocate the
to a divorce, the transfer can have
that same-sex couples have as much right
property between the spouses.
significant tax consequences upon the
as heterosexual couples to be miserable in
subsequent disposition of the property. In
their marriage and suffer the same income
A CPA can provide valuable assistance
some cases, the immediate transfer may
tax problems when they divorce. [United
to the divorcing client and the attorney
cause recapture of previously claimed
States v. Windsor, 570 U.S. (2013)].
in the identification and valuation of
tax benefits, such as where depreciable
marital property. In addition, a CPA can
business property used by one spouse is
Among the many tax traps facing
be an important advisor in assisting in the
transferred to the other who does not use
divorcing couples, regardless of sexual
development of a settlement agreement
the property in a trade or business.
preference, are the tax consequences of
to equitably divide marital property.
property transfers.
Section 1041 requires the recipient spouse Although the general rule of Section 1041
to take the property subject to all of the
In Maryland, state law requires the Family
is that no gain or loss is recognized on
tax attributes of the transferor. Those tax
Law Court to (1) identify all marital
a transfer of property from an individual
attributes include basis carryover; Section
property, (2) value each item of marital
to a spouse or former spouse incident
179 recapture if the transferee does not
“One of the most significant tax traps is the federal tax lien against one of the parties.�
38
STATEMENT
use the property in a trade or business;
even after the property was transferred to
subject to income taxation when she takes
Section 280F listed property depreciation
the wife in a divorce settlement. Several
distributions from her IRA.
recapture; Section 1245 ordinary income
years after the divorce, the wife sold the
(rather than capital gain) for depreciation
house and the IRS seized 50 percent
taken by the transferor; Section 469(j)
of the proceeds to satisfy the tax lien
(6) denial of suspended losses on the
against the husband. A CPA should
transfer of passive activities; Section
advise the attorney that tax liens
1366(d)(2)(B) carryover of S corporation
against one of the parties should
LEARN MORE AT THE ADVANCED PFP CONFERENCE
suspended losses; a carryover of federal
be satisfied before joint property is
Alan Zipp will be speaking on “Tax and
tax liens against the transferor for
divided in a divorce settlement.
Financial Planning for Property Transfers
property transferred; income and excise
in Divorce” as part of the MACPA’s 28th
taxes for pension transfers without a
Stock in a closely held business can
court order; ordinary income recognition
be transferred in a divorce under
to the transferee upon the exercise of
Section 1041 without immediate tax
non-statutory stock options and non-
consequences. However, in most
qualified deferred compensation; and
cases one of the spouses wants to
constructive dividends to the transferor
remove the other from the business,
upon the redemption of corporate stock
so a buy-out of the other’s interest is
Keogh and pension accounts can be
in a divorce.
frequently the plan. This can result in
transferred without tax consequences
annual Advanced Personal Financial Planning Conference, scheduled for 8 a.m. to 4:30 p.m. on Oct. 25 at Martin’s West in Baltimore. Get details and register at http://cpa.tc/38j.
unintended tax consequences if the
to the transferor if the funds are first
Effective financial planning requires a
cash comes from the business. In many
transferred from the pension into the IRA
CPA to value all property on an after-
cases the corporation is used to redeem
of the transferor and then transferred into
tax basis to determine what an equal
the stock of the party to be bought out.
the IRA of the transferee.
division of property would be. While the
This results in a constructive dividend,
divorce court applies an
taxable as ordinary income, to the spouse
A Qualified Domestic Relations Order,
equitable distribution
continuing to own the business.
issued by the Family Law Court, can be used to transfer pension funds from one
policy, a CPA advisor should analyze proposed
The Tax Court view is that a corporate
spouse to the other. If the order transfers
property divisions on
redemption to the wife was “on behalf
the pension into the IRA of the other
an equal after-tax value
of” the husband and that the husband
spouse no tax consequences will result
basis.
realized a constructive dividend [Reed,
until distributions are made from the IRA.
Carol, et al., 114 T.C. 2 (2000)]. The
If the order requires the distribution from
Also, potential tax traps
best planning advice in such cases is for
the pension of one party directly to the
should be presented
the husband to borrow the cash from
other, no early withdrawal penalty will be
to the client and the
the corporation and use the funds to
applicable, but the recipient spouse will
divorce attorney. One of
buy out the wife’s shares. In that case,
be subject to ordinary income tax on the
the most significant tax
Section 1041 would apply and no taxable
pension income under Section 61(a)(11)
traps is the federal tax
income would be recognized. Corporate
[Weir, Katherine, T.C. Memo. 2001-184].
lien against one of the
redemptions should be avoided whenever
parties.
possible.
After-tax valuations of all property should be made based on the fair market value
The United States
IRA accounts can be transferred without
of the property less the adjusted basis of
Supreme Court ruled
penalty or income taxation to the
the property. An inventory of this after-tax
[U.S. v. Craft, 535 U.S.
transferor if made pursuant to written
value can be provided to the client and
274 (2002)] that an IRS
agreement incident to divorce, under
the attorney to assist in the development
lien on the husband
Section 408(d)(6). Under that provision,
of an effective property settlement
continued against
the husband’s IRA can be transferred
agreement.
property owned by him
directly from his IRA into the IRA of
and his wife, as tenants
the wife. If the transfer is accomplished
Alan Zipp is a CPA, Attorney at Law, Certified
by the entireties at the
between the trustees, no withholding
Business Appraiser, Certified Fraud Examiner,
time the lien was placed,
tax will be required. The wife will be
author, lecturer, and discussion leader for the AICPA.
39
BE THERE WHEN YOU CAN’T BE THERE MACPA offers over 400 webcasts a year. macpa.org/webcasts
PROFESSIONAL DEVELOPMENT What’s up with the MACPA’s BVLS Committee? THERE’S A LOT HAPPENING WITH THE MACPA’S BUSINESS VALUATION AND LITIGATION SERVICES COMMITTEE.
In 2014, the BVLS Committee is planning
number of meetings annually to remain
its second annual Forensic Valuations
on the committee. If you are interested
Conference, to be held on May 16 at
in joining the committee, would like to
the BWI Hilton. Last year’s conference
attend committee events, or would like
was a great success, featuring nationally
more information about the committee
For one thing, it is changing its name
recognized speakers such as Mark Zyla
and upcoming events, please call Dee
to the Forensic and Valuation Services
and Gary Trugman and showcasing the
Committee to adequately address the
talents of regional experts. The committee
topics covered at its recurring Speaker
anticipates even greater participation this
Series and the annual conference.
year.
Founded in 1990 to provide a forum for
In January, as part of its Speaker Series,
CPAs practicing in the area of business
the committee is planning a “mini-mock
valuations, the committee has grown to
trial.” Last year, the committee hosted an
more than 200 committee and association
interactive mock deposition and trial at
members. Its members and the profession
Stevenson University to offer members
have continued to diversify the type of
a unique and in-depth understanding of
consulting services that it offers. Growing
defense strategies used in the courtroom.
out of their expertise in accounting and
This year, the group plans to offer a two-
business valuations, members also work
hour, focused program specifically on the
in other areas such as lost profit / value
role of the expert witness.
analyses, fraud investigations, asset tracing, bankruptcy administration, and forensic accounting. That’s in addition to providing expert witness testimony in all of the aforementioned areas. Therefore, consistent with the AICPA’s committee structure, the committee has changed its name to include forensic services. During the fiscal year, the committee offers a Speaker Series, a valuation and forensic conference, and other targeted education opportunities. The committee plans four to six Speaker Series presentations each year. The Speaker Series is usually held on the third Friday of each month from 8:30 to 10:30 a.m. at the MACPA’s Columbia Center. The committee will host speakers in September, November, January, April and July.
The committee also has new leadership for the 2013-14 fiscal year: • Chairperson Lynette Brown, of Invotex, Inc.; • Vice Chairperson Kris Hallengren of Weyrich, Cronin & Sorra Chartered; and • Secretary David Lanchak of Gross, Mendelsohn & Associates, P.A.
ON-SITE TRAINING P O W E R E D B Y:
YOUR STRATEGY. OUR LEARNING EXPERTS. ORGANIZATIONAL SUCCESS.
We develop cost-effective customized learning solutions to help your organization achieve its goals.
The BVLS Committee is ably supported
Call Pam Devine today at
by its MACPA coordinator, Dee Sullivan,
443.632.2321
the MACPA’s conference manager and webcast specialist.
to find out how we can tailor a solution to your needs.
The committee is actively recruiting interested individuals to participate. Members must attend a minimum of
OCTOBER 2013
41
MEMBER NOTES NEWS & VIEWS Cynthia “Cindy” Alt, CPA, a Shareholder with
years of accounting experience, Mr. Buckberg specializes in
Stoy, Malone & Company, P.C., was awarded a Paul
providing audit and accounting services to multi-employer
Harris Fellowship by the Rotary Club of Towson in
benefit plans and labor organizations. A Certified Fraud
recognition of her volunteer services to the Club.
Examiner and Certified in Financial Forensics, he is also deeply
Paul Harris was the founder of Rotary International. The RI
experienced in performing fraud examinations and providing
Foundation has established the Paul Harris Fellowship as a way
litigation support for labor organizations, multi-employer benefit
to recognize people who make valuable contributions to the
plans, and a wide variety of privately-held entities.
community.
Lily Cheng, an MACPA CPA Candidate Member, joined Squire,
Sara Baker, an MACPA CPA Candidate Member, has been
Lemkin + Company, LLP as a staff accountant on September 3,
promoted to senior accountant with Squire, Lemkin +
2013. Ms. Cheng received her bachelor’s in Accounting from
Company. Ms. Baker received her bachelor’s in Accounting
Shippensburg University.
from Shippensburg University. She is currently working on her
William Coulter, Jr., CPA, has been promoted to in-charge
masters from George Washington University.
accountant with Squire, Lemkin + Company. He recently earned
McLean, Koehler, Sparks & Hammond (MKS&H)
his CPA designation. Billy received his bachelor’s in Accounting
is pleased to announce the addition of Wayne
from Mt. St. Mary’s University.
Baldwin, CPA. He has joined the accounting and business consulting firm as a principal. In his new role, Mr. Baldwin will be in charge of overseeing the daily operations and client service aspects of the audit and accounting department in the Hunt Valley office.
DeLeon & Stang is pleased to announce Allen DeLeon, CPA, PFS, a Partner at DeLeon & Stang, has been elected to the Montgomery College Life Sciences Park Foundation Board. The Montgomery College Life Sciences Park
Scott Beck, CPA, CFO at Catholic Charities of Baltimore, was
Foundation is an educational foundation that manages the
recently honored with a Baltimore Business Journal 2013 CEO/
assets of the College’s life sciences park and helps foster
CFO Dream Team Award. Winners are judged on the impact
academic partnerships with firms and individuals in the life
they make on their businesses, such as revenue growth, new
sciences industry. Mr. DeLeon is a founding partner of DeLeon &
products and innovations, M&A success, stock appreciation, net
Stang. His specialties include audit, tax, financial and advisory
income growth, corporate philanthropy, and overall leadership
services for businesses and not-for-profit organizations.
style.
Ellin & Tucker, Chartered, announced that Samantha Invotex, a national accounting, financial and
DeRemigis, CPA, has been promoted to Supervisor in the Tax
economic consulting firm, is pleased to announce
Department. Prior to joining Ellin & Tucker, Ms. DeRemigis
that Lyn Brown, CPA, has been elected Chair
was a tax associate for a regional accounting firm. She holds a
of the Business Valuation and Litigation Services
Bachelor of Science degree in accounting and is a Candidate for
committee of the Maryland Association of Certified
a Master of Science degree in Taxation from the University of
Public Accountants. A director in Invotex’s litigation practice,
Baltimore, School of Law.
Ms. Brown has been a member of BVLS for seven years. As
Susmita Ghimire, an MACPA CPA Candidate Member, joined
incoming chair, she will focus on a number of new initiatives involving training, development, and membership. Lyn Brown, CPA has also been appointed an adjunct professor at Georgetown Law School. She will teach Basic Accounting Concepts for Lawyers in the Master of Laws program this fall.
Squire, Lemkin + Company, LLP as a staff accountant on September 3, 2013. Ms. Ghimire received her bachelor’s in Accounting from University of Maryland, College Park. Scott Handwerger, CPA, a member of Gross Mendelsohn’s Construction and Real Estate Group, was recently named a partner at Gross,
Mark A. Buckberg, CPA, CFE, CFF recently joined Bond Beebe Accountants & Advisors as a Principal in the rapidly-growing Benefits and Labor Sector. A professional with over eighteen
42
Mendelsohn & Associates. He helps contractors and real estate developers, managers and investors with tax planning and tax compliance. He specializes in cost segregation studies, which often benefit companies that
STATEMENT
have built a new facility or renovated an existing facility. Mr.
and reviews of a wide range of businesses, including health
Handwerger also provides a full range of tax and accounting
care, real estate and casualty and life insurance companies.
services to restaurants.
Gross, Mendelsohn & Associates, P.A. is pleased to announce
Volunteers of America Chesapeake announced the appointment
that Cristine “Tina” McCubbin, CPA, joined the firm’s tax
of John P. (Jack) Hollerbach, CPA, as Executive Vice President
department as a senior accountant. Ms. McCubbin graduated
and Chief Financial Officer. In the newly created role, Mr.
from Towson University with a bachelor’s degree in accounting
Hollerbach will assume responsibility for the organization’s
and from University of Baltimore with a master’s degree in
strategic, financial and administrative functions, and will play
taxation. She is a Certified Public Accountant with 17 years of
a key role in assessing new opportunities for growth and
accounting experience in public accounting and private industry.
expansion of the nonprofit organization.
Stegman & Company would like to congratulate Matthew
Russ Houseal, CPA, recently retired after working 49 years as a
Mehlbaum, an MACPA CPA Candidate Member. He has been
CPA. He established his own firm in 1976 and sold it to Twilley
promoted to the position of Senior Accountant at the firm.
Rommel & Stephens, PA in 2007. Mr. Houseal has been a
Craig Mellendick, CPA, CFO at Enterprise Community
member of the MACPA for almost 40 years.
Investment, was recently honored with a Baltimore Business
Carl Kampel, CPA, Director in Charge of
Journal 2013 CEO/CFO Dream Team Award. Winners are
Professional Standards at Ellin & Tucker, Chartered,
judged on the impact they make on their businesses, such as
was recently elected to serve on the 2013-14
revenue growth, new products and innovations, M&A success,
Board of Directors of the Maryland Association of
stock appreciation, net income growth, corporate philanthropy,
Certified Public Accountants (MACPA). Mr.
and overall leadership style.
Kampel advises clients on financial reporting for complex
Hertzbach & Company, P.A. is pleased to
transactions and represents the firm before financial reporting
announce that Donald S. Miller, CPA, has joined
standard-setting organizations. He is a member of the Financial
the firm as a principal. Mr. Miller has over twenty
Accounting Standards Board Emerging Issues Task Force,
five years of public accounting experience. Prior
the Board of Directors of the Baltimore Chapter of Financial
to joining Hertzbach, he was a Director at Ellin
Executives International (FEl) and Co-Chair of the Baltimore
& Tucker. Mr. Miller has extensive experience providing audit,
Chapter of the Financial Executives Networking Group.
accounting, tax, and consulting services to the manufacturing, wholesale, not-for-profit, and employee benefit plan industries.
Jeffrey M. Lawson, CPA, a shareholder of Stoy,
Stegman & Company would like to congratulate Scott Murray,
Malone & Company, P.C., has been appointed to
CPA. He has been promoted to the position of Supervisor at
the Towson University Accounting Advisory Board.
the firm.
His primary areas of concentration at the firm are
Kathryn Nelson, CPA, Tax Manager of Squire, Lemkin +
pass-through entity taxation, state and local taxation (SALT)
Company, LLP, was elected as the President of the Washington,
and individual income taxation. In addition, Jeff frequently
DC Estate Planning Council. Her term will run through June 30,
represents clients with federal and state tax examinations and
2014.
notices. Jeff serves clients all over the world ranging from self-employed individuals to large multi-state corporations and partnerships. His primary specialty areas are real estate, investments and foreign compliance.
Gelman, Rosenberg & Freedman CPAs announces that Jacqueline Oneto, CPA, will become the firm’s new managing partner effective July 1, 2013. She will succeed David F. Graling, CPA, who has served as managing partner since 1998. Ms.
Jim Liang, CPA, has been elected a partner of Rosenberg
Oneto, a partner at Gelman, Rosenberg & Freedman, specializes
Martin Greenberg, LLP. He represents individuals and entities
in providing non-profit audit services and benefit plan audit
during all stages of federal and state tax controversies and
services for 401(k), 401(a), 403(b), profit-sharing, pension, health
litigation. Prior to joining the firm, Mr. Liang was employed as
and welfare plans.
a Certified Public Accountant, during which time he prepared individual, business and trust tax returns and performed audits OCTOBER 2013
43
MEMBER NOTES NEWS & VIEWS Gross, Mendelsohn & Associates, P.A. is pleased to announce
Gross, Mendelsohn & Associates, P.A. is pleased to announce
that Willie “Will” Pass, an MACPA CPA Candidate Member,
that Rich Shank, CPA, CMA, a supervisor in the firm’s audit
joined the firm’s audit and accounting department as a semi-
and accounting department, was appointed treasurer of Stocks
senior accountant. Mr. Pass graduated from University of
in the Future, a nonprofit organization developed by Johns
Maryland with a bachelor’s degree in accounting and is pursuing
Hopkins University to teach financial life skills to middle school
a master’s degree in nonprofit management and finance at
students.
University of Maryland University College. He has 12 years of
Jillian Sposato, CPA, has been promoted to Supervisor with
accounting experience.
Stegman & Company. Ms. Sposato recently obtained her CPA
Byron K. Patrick, CPA.CITP, CGMA, MCSE, Co-founder/CEO
license.
of Simplified Innovations Inc. and Chair of MACPA’s Board of
Ellin & Tucker, Chartered, a leading regional certified public
Directors, was recognized as a “40 Under 40” Honoree by The CPA Practice Advisor. The “40 Under 40” program recognizes individuals in accounting, tax, and related fields under the age of 40 that exemplify the best in their field.
accounting and business consulting firm, announced that Cynthia Taylor, CPA, has been promoted to Manager in the Audit, Accounting, and Consulting Department of the firm. She is a key member of the firm’s Not-for-Profit Services
Glen R. Peak, III, an MACPA CPA Candidate
Group. Additionally, Ms. Taylor is responsible for conducting
Member, recently joined the professional staff of
audits, reviews and compilations of financial statements and
Stoy, Malone & Company, P.C., a Towson-based
preparing corporate tax returns for privately held companies in
regional accounting and business consulting
the manufacturing, service and wholesale industries, as well as
firm. Mr. Peak graduated from Towson University and is in the
employee benefit plans.
process of earning his CPA designation. He will provide tax preparation for a wide range of individual and corporate clients.
Arlene R. Thayer (Ciroula), AAAPM, Chief Operating Officer of KatzAbosch, has recently
Reid Roberts, CPA, CCIFP, a member of Gross Mendelsohn’s Construction and Real Estate Group, as well as the Nonprofit Group and Healthcare Group, was recently named a partner at Gross, Mendelsohn & Associates. He provides
been inducted into Network 2000, a non-profit organization founded in 1993 with the mission to promote the advancement of women in professional and executive positions. Stegman & Company would like to congratulate Ana Welborn,
audit, accounting and tax services, including employee benefit
CPA. She has been elected to the Firm’s Board of Directors.
plan audits, to construction contractors, long-term healthcare
Angeline White, CPA, CCA, a Senior Manager at Weyrich,
providers, and manufacturers and distributors. Mr. Roberts
Cronin & Sorra, Chartered, has qualified as a Certified
is a Certified Construction Industry Financial Professional, a
Construction Auditor (CCA) and has become a member of the
designation earned only by those with specialized expertise in
National Association of Construction Auditors (NACA). Ms.
the construction industry.
White has over 20 years of accounting experience in both public and private industry.
R. Christopher Rosenthal, CPA, a Director in the Forensic and Valuation Services Group at Ellin & Tucker, Chartered, has recently been elected President-elect of The Baltimore Estate Planning
Stegman & Company would like to congratulate Keith N. Wiessner, CPA, Director of the firm’s Tax Department. He has been elected to the Firm’s Board of Directors.
Council. The Council is an interdisciplinary organization for professionals involved in estate planning. It strives to foster understanding of the proper relationship between the functions of the Trust Officer, Attorney, Qualified Financial Advisor, Non-Profit Professional, Accountant, and any other party or parties having to do with estate planning, and to encourage cooperation of persons under those disciplines.
44
STATEMENT
FIRM NOTES
Bormel, Grice & Huyett, P.A. is proud to announce the presentation of the Bormel, Grice & Huyett Business Scholarship Awards to Brian Shade and Tempitope Biobaku, both seniors from Mount Hebron High School. The Bormel, Grice & Huyett Business Scholarship Award is presented annually to area high school seniors for scholastic achievement and interest in pursuing a business curriculum in college. Past recipients include students from River Hill High School, Laurel High School, Pallotti High School, Reservoir High School, Hammond High School, Glenelg High School, and Atholton High School. After several years working together in a business relationship,
CohnReznick LLP’s Baltimore and Bethesda offices have been
Chesapeake Accounting & Bookkeeping Service, Inc. has
honored with the 2013 Alfred P. Sloan Award for Excellence in
joined the CPA firm of Weyrich, Cronin & Sorra, Chartered
Workplace Effectiveness and Flexibility in the Maryland category.
(WC&S). Chesapeake Accounting & Bookkeeping Service, Inc.
The award recognizes the Firm’s use of flexibility and other
has been serving Maryland, Delaware and Pennsylvania for over
aspects of workplace effectiveness as a workplace strategy to
30 years and has been voted one of Cecil County’s favorites
increase business and employee success. This prestigious award,
for accounting and bookkeeping services several years in a
part of the national When Work Works project administered by
row. The merger was the next natural step for the firms since
Families and Work Institute (FWI) and the Society for Human
WC&S has been doing work in Cecil County for several years
Resource Management (SHRM), recognizes employers of all
and performing the tax work for Chesapeake Accounting &
sizes and types in Maryland and across the country.
Bookkeeping Service’s clients for the past two years. OCTOBER 2013
45
FIRM NOTES Gross, Mendelsohn & Associates is ranked number 168 on
The Weyrich, Cronin & Sorra, Chartered and Michael D. Sisk
INSIDE Public Accounting’s “IPA 200,” a list of the largest CPA
& Company, PC merger brings together a great combination of
firms in the country. Gross, Mendelsohn & Associates was
practices. Weyrich, Cronin & Sorra, Certified Public Accountants
also named to INSIDE Public Accounting’s “IPA 200 Fastest-
& Business Consultants (WC&S) welcomes some new faces to
Growing,” a list of the fastest-growing firms in the country.
their Lutherville office. The Michael D. Sisk & Company, PC
Gross Mendelsohn is a Baltimore-based CPA and consulting
joined the CPA firm of WC&S on June 7th. The merger provides
firm serving the complete financial needs of privately-held
a great combination of practices that are very complementary,
businesses, nonprofit organizations and families in the Mid-
making it a ‘good fit.’
Atlantic region.
Jeff W. Wilson II, CPA, CFE, AFC, Principal of J. Wilson II, CPA
Haines & Lagerquist, CPAs, LLC has been selected as one of
LLC, has been selected as one of 38 young CPAs to participate
the “Top 500 Emerging Businesses in the U.S.” and as one of
in the American Institute of CPAs 5th annual Leadership
the “Top 100 Diversity Owned Businesses in Maryland” for 2013
Academy in Durham, N.C. this fall. Mr. Wilson will join rising
by DiversityBusiness.com, the nation’s leading multicultural B2B
stars in the accounting profession from across the country
online website. Located in Bowie and Hyattsville, MD, Haines &
to learn leadership theory and strategic planning techniques
Lagerquist provides creative, analytical and strategic business
develop tools for handling complex management challenges
guidance to companies in the Washington, D.C. metropolitan
and discuss the most important issues facing CPAs and the
area. The firm’s experienced advisors provide outsourced
accounting industry.
CFO services, tax planning and preparation, and bookkeeping services to companies in a variety of industries. The American Institute of Certified Public Accountants (AICPA) has identified Hertzbach & Company, P.A. as one of the 500 largest CPA firms in the United States, out of more than 48,000 firms in the nation. Hertzbach has also been recognized as an official member of the Group of 400 (G400). Aside from the 100 largest firms in the United States that make up the Major Firms Group, the AICPA works closely with the G400 which is comprised of the next 400 largest firms. As a member of the G400, Hertzbach will be able to collaborate with leaders at the AICPA and in the profession to share best practices and assist in getting the best information and services to our clients. Ryan & Wetmore, PC has partnered with the Junior Achievement of Central Maryland to support their efforts in providing the financial curriculum for Maryland students. Members of the firm will visit middle schools in Frederick County in the fall and spring as “Content experts.” They will
MEMORIAM Patrick E. “Pat” Kline, CPA, passed away on March 14, 2013. He first worked for Smith Elliott Kearns & Company in Hagerstown, but later opened his own accounting firm Kline & Company in 1991. Paul Naden, CPA, a founding partner of the Hunt Valley firm Naden/Lean, passed away on July 26, 2013 at the age of 82. Mr. Naden, a CPA and attorney, worked as a sole practitioner until Gerald Lean joined the firm as an associate in 1966. They went into partnership in 1979.
provide students with information regarding the CPA profession and answer questions they have both financially and regarding the profession. Santos, Postal & Company, P.C., a leading certified public accounting and business consulting firm, announced that Thompson & Associates, P.C., Certified Public Accountants, merged into Santos, Postal. This merger became effective on August 1, 2013. The merged firm will continue to offer wealth management and advisory services, as well as traditional tax, auditing, and accounting services.
46
STATEMENT
ON-SITE TRAINING YOUR STRATEGY. OUR LEARNING EXPERTS. ORGANIZATIONAL SUCCESS. The Business Learning Institute is the strategic learning partner and talent management consultancy for organizations worldwide. As the learning affiliate of the Maryland Association of CPAs, we offer services and content to help organizations maximize career trajectories. 60+ instructors. Programs in all formats (live events, webcasts, on-demand). Tailored to you.
Call Pam Devine today at
443.632.2321 to find out how we can tailor a solution to your needs.
NYPN NEWS As we say goodbye to summer and prepare for the coming year,
This fall, NYPN will be holding a full committee meeting on Oct.
we welcome our newly inducted 2013-14 NYPN Advisory Board.
17. Please plan on attending if you are on the committee or are
Please see the list of member names below. Our Advisory Board
interested in learning more about NYPN. E-mail nypn@macpa.
is looking forward to organizing new and exciting events for
org for details.
NYPN, and planning valuable CPE and volunteer opportunities. Following the meeting, we will hold our fall happy hour in The MACPA Wine Tasting, brought to you by NYPN, was held
Timonium at Hightopps Backstage Grille.
on Friday, Aug. 23 in Baltimore. NYPN enjoyed a celebratory night out at the Ritz. Delicious hors d’oeuvres were provided
Lastly, if you are a newly licensed CPA, don’t miss out on
by La Fontaine Bleue Catering, wine tastings by Woodhall
attending the 2014 Newly Licensed CPAs Swearing-In Ceremony
Wine Cellars, and of course the breathtaking location by The
and Reception to be held on Nov. 4.
Ritz-Carlton Residences, Inner Harbor. Gift card prizes were won during a networking bingo game and a raffle drawing by the following individuals: Chimere DeVane, Angeline Huffman, Jessica Kaufman, Catherine Martin, and Victoria McNair.
Visit the NYPN webpage at MACPA.org/NYPN. NYPN is also on Facebook, Twitter, and Linkedin.
Congratulations to our winners! Thank you for all that attended this special event.
GROW UP. But not too much. Young CPAs connect at MACPA’s New Young Professionals Network macpa.org/NYPN
What is NYPN? NYPN is an organization committed to connecting new / young professionals to the MACPA, protecting the integrity of the profession, and helping new CPAs and CPA candidates achieve their goals. NYPN is a place where new CPA professionals can make contacts in the profession, get involved in the community and get the support they need to be successful. The requirements to be a part of NYPN are CPA candidates (working on or having achieved the 150-hour threshold) or current CPAs under the age of 40 and/ or licensed for fewer than five years.
TOP 10 REASONS TO GET INVOLVED: 1. Camaraderie 2. Insight 3. Professionalism 4. Development 5. Growth
6. Commitment 7. Charity 8. Community 9. Responsibility 10. FUN!
Get involved GET TO KNOW OUR NYPN ADVISORY BOARD AND FIND OUT FIRST-HAND WHAT WE’RE ALL ABOUT: Chair: Nick Hollander, L&H Business Consulting: nhollander@lhbusinessconsulting.com Vice chair / chair-elect: Debra Hale, Weil, Akman, Baylin & Coleman, P.A.: Debra.Hale@wabccpas.com Secretary / treasurer: Stephen Hohne, Hertzbach & Company: shohne@hertzbach.com Past chair: Jeff Klima, SC&H: jklima@scandh.com
LEADERSHIP BOARD Activities / professional development chair: Jennie Hammett, Gorfine, Schiller & Gardyn: jhammet@gsg-cpa.com Public Relations / outreach chair: Barrett Young, The Green Abacus: barrett@thegreenabascus.com At-large member: Kuo Lee, KSL LLC: kuosheinglee@gmail.com At-large member: Harry Sturgis, Weyrich, Cronin & Sorra Chtd.: harrys@wcscpa.com
You’re invited • OCT. 17 – NYPN COMMITTEE MEETING, MACPA Towson Office, 3-5 p.m., Complimentary, register by e-mailing nypn@macpa.org • OCT. 17 – NYPN FALL HAPPY HOUR, Hightopps Backstage Grille, Timonium, 5:30- 8:30 p.m., Complimentary to members, register at www.macpa.org • NOV. 4 – CELEBRATE THE PROFESSION, Newly Licensed CPAs Swearing In Ceremony and Reception, Hilton Baltimore BWI Airport, Linthicum, 5:30 – 9 p.m., Complimentary for newly licensed CPAs/$25 guests Register at www.macpa.org • DEC. 12 – NYPN WINTER HAPPY HOUR, TBD, 5:30 -8:30 p.m., Complimentary to members • DEC. 19 – NYPN WINTER HAPPY HOUR, TBD, 5:30 -8:30 p.m., Complimentary to members OCTOBER 2013
49
MEMBER SERVICES WELCOME, NEW & REINSTATED MACPA MEMBERS! ANNE ARUNDEL COUNTY
CISA
PRITI R. DESAI, CPA
KIMBERLY A. AUGUSTERFER, CPA
ELIZABETH A. ROGERS, CPA
JOSHUA M. DOWNEY, CPA
DAVID M. SHIFFERT, CPA
JASON FRIEDMAN, CPA
SEONGMUK SIM, CPA
DAVID S. GOLDMAN, CPA
WENDY M. STEPHENS, CPA
RICHARD GREENWOOD, CPA
MARK J. SUMMERS, CPA
SALOMON GRUNHUT, CPA
MOUYUNG H. SUN, CPA
BRIAN P. HELLMAN, CPA
ZHANG TIAN, CPA
THOMAS J. HOECK, CPA
KAREN M. WITCHER, CPA
RICHARD A. HURST, CPA
MIENTOR E. WUOR, CPA
YISROEL T. ICKOVITZ, CPA
KIMBERLY A. YINGLING, CPA
MICHAEL J. JOHNSON, CPA
FRANCES L. BROWN, CPA YOUNHEE DAVIS, CPA GRACE C. HARDY, CPA BRYAN D. HINES, CPA RODELO ILAGAN, CPA FRANCIS X. JAHN IV, CPA ANGIE D. MARKLEY, CPA JULIE MUSSOG, CPA PAMELA A. NEWMAN, CPA
BASSEYDOU KAMAGATE, CPA
DONNA L. POOLE, CPA
CENTRAL MARYLAND CHAPTER
LYNN WILKINSON, CPA
BONNIE J. KATZ, CPA
SCOTT R. ALLENDER, CPA CAPITAL AREA CHAPTER
JESSICA B. ANDREWS, CPA
AFTAB AHMAD, CPA
RANDALL ANDREWS JR., CPA
WILLIAM H. ARNOLD, CPA
JAMES M. ANUSZEWSKI, CPA
DENISE T. BOSSARD, CPA
ADAM S. ARNOLD, CPA
NIKOLINA T. BOYADZHIEVA, CPA
COLLEEN D. AUBURGER, CPA
DAVID N. CARR, CPA
STEPHEN M. BISHOP SR, CPA
MICHELE A. COLEMAN, CPA
TRACY L. BLACK, CPA, MBA
GREGORY CUTAJAR-WYNNE, CPA
AMANDA L. BOSSI, CPA
MARCO A. FERNANDES JR., CPA TIMOTHY E. FORCE, CPA
JOSEPH J. BRUSAK IV, CPA SCOTT D. BURTZLAFF, CPA
MEHERET GOBEZIE, CPA
JUSTIN R. BUSCH, CPA
KAREN W. JACOBS, CPA
GEORGE A. CAVELIUS, CPA
EZRA G. LULANDALA, CPA
MICHAEL CIUFO, CPA
RICHARD J. MOORE, CPA
ANTHONY B. CLARK, CPA
NEETI NARAYANA, CPA
STEPHANIE COPPEL, CPA
MYLENE L. ORTIZ LUIS, CPA SHARON PETERS MARTIN, CPA DR. AMY C. PIERCE, CPA, CFF,
LYDIA M. BROWN, CPA
JACOB A. DEBUS, CPA LAURA N. DEMMITT, CPA
CHRISTINE Y. KOSKI, CPA ANGIENA LABARRIE, CPA, MST
RONALD C. SEUFERT, CPA, MS FINANCE ANDREW T. SHOBE, CPA BRUCE W. SIXX, CPA KATIE E. SKUFIS, CPA
SOUTHERN MARYLAND CATHRYN A. FRERE, CPA AMY L. MCALLUM, CPA
OUMOU SOW, CPA
JEFF W. WILSON II, CPA, CFE, AFC
ANITA A. TAYLOR, CPA
CLINT ATHEY, CPA
ANDREW J. TOMASCHKO, CPA
CHRISTOPHER C. POWELL, CPA
MEGHAN N. TROVATO, CPA
RONALD G. REED, CPA
TIMOTHY J. TURNER, CPA
DALE R. SHADEL, CPA
CHRISTOPHER VAZIRI, CPA SHEENA-KAMOUY A. VICKERS, CPA SUSAN P. WEAVER, CPA SAMUEL J. WEILAND, CPA
DILAWAR LAKHANI, CPA
DONALD WEINAPPLE, MBA, CPA
ROBERT J. LATTERI, CPA
LILI ZHANG, CPA
DONALD E. LAVIN, CPA
ROBIN E. ZIMMERMAN, CPA
PEGGY J. LEE, CPA, MBA
OUT OF STATE JONATHAN R. BARTON, CPA ANNE-MARIE P. BRIZENDINE, CPA LISA A. JORGENSEN, CPA JENNIFER SCHMITT, CPA ANTHONY B. SCOLA, CPA JAMES B. SELLS, CPA
JANE N. LEWIS, CPA
EASTERN SHORE
KRISTIE A. STRUBECK, CPA, CRPC
COURTNEY A. MOORE, CPA
JORDAN ADAMS, CPA
JOSEPH M. WALLACE, CPA
RUSSELL D. MOORE, CPA
ALICIA E. BACCHI, CPA
LAWRENCE W. WINFIELD, CPA
TYSHEBA L. MORGAN, CPA THOMAS J. MURPHY, CPA, MBA
BARBARA A. FAULKNER, CPA, MBA
NICHOLAS A. MYERS, CPA
THOMAS P. HEALEY, CPA
OLUBUNMI O. OLARINDE, CPA
VIRGINIA L. KILMON, CPA
SETH D. RABINOVITZ, CPA
DANIELLE L. PRINCE, CPA
PAULA M. RAYNOR, CPA ARCHIE B. REED, CPA
MID-MARYLAND CHAPTER
STEPHEN E. ROPELEWSKI, CPA
NANCY C. GIUFFREDA, CPA
LAUREN E. ROSE, CPA
CATHERINE M. NAZARENE, CPA
DAVID A. SACK, CPA
KERY SWOPE, CPA
DAVID SERENO, CPA
JOANNE D. WILLIAMS, CPA
WELCOME, NEW CPA CANDIDATE MEMBERS! ANNE ARUNDEL COUNTY GEOFFREY D. BREWSTER SUSAN E. BROWN REBECCA A. CHAUZA MICHAEL FIELDS ASHLEY J. GUESS DUSTIE HORN ANDREW W. MARTIN MARK PERRY MATTIE E. RILEY CAPITAL AREA CHAPTER CHRISTOPHER S. BAKER COMORA D. BROCK WESLEY A. CALL LILY CHENG GEORGE E. DELGADO ROBERTO DIAZ CARLY MAY A. GERONIMO
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SUSMITA GHIMIRE
CHRISTOPHER D. DOW
DEBORAH MELTON
STEPHEN A. KINCAID
ALETHEA FRANKLIN
ADAM F. MILOSZ
EASTERN SHORE
OUT OF STATE
CASEY KOVAL
ANGELA L. GETTIER, EA
LOGAN J. MONACO
MATTHEW CHANCE
REBECCA A. BROWN
IRMA M. OKE
JONATHAN GILL
OTYLIA E. MOORE
MAME N. DIAW
MAURICE JONES JR.
ZACHARIAS A. PITZER
MARIA V. GOMOZOVA
SHATERRA M. NEELY
MIRANDA O’NEAL
WAYTU LO
JASPREET RAGHU
DAVID A. HERRON
WILLIE J. PASS III, MS, MBA
IRINA O. SPIRINA
JIYOUN PARK
ARPITH RAO
JESSICA V. HUGHES
KRISHNA PATEL
RACHEL ROBARGE
JOSHUA S. HYMAN
PARINA PATEL
MID-MARYLAND
MICHAEL C. WINTER
KELLY IRWIN
AMY J. PRICE
ABOUBACAR BAH
KYLE D. WOLFER
CENTRAL MARYLAND CHAPTER
ELIZABETH B. JOHNSON
JONATHAN RADA
MATTHEW M. BROCKWAY
JEAN XIE
WILLIAM F. ANDERSON, MBA
THAO M. KHUU
ANGELA M. RICHARDSON
JONATHAN A. EMMELL
ELIEZER KIFFEL
JASON RINAUDO
TRINA L. TANSEY
JACEN P. KILLEBREW
ERIC R. RUSSELL
ALEXANDER KIMTIS
MATTHEW A. SMILER
SOUTHERN MARYLAND
ANDREW R. KINSEY
PEGGY SPIOCH
YUWEI LIU
LISA M. KLEINWORT
CHRISTIE E. STRUCKO
JOSEPH R. KOEHLER
SEAN R. SWEENEY
WESTERN MARYLAND
SUGAN KOIRALA
DEBORAH L. WALLACE
JONATHAN HINER
PHILLIP E. LARRABEE
MARC K. WALSCH
DALLAS OUELLETTE
WILLIAM BOYD ELIE I. CALM CHAUNTIA S. CARROLL ERIN CHARLES TORIE COLE JON M. COONAN LOUIS H. COXE
KIM M. LEWIS
THOMAS-KLING
GLEN R. PEAK
MARISSA L.
STATEMENT
CLASSIFIEDS mergers & acquisitions
PRIME OFFICE SUITES AT CITY DOCK, ANNAPOLIS: Come see the only office building available at city dock in downtown Annapolis. This building
QUALITY CPA FIRM WISHES TO ACQUIRE PRACTICE OR ACCOUNTS in Baltimore/Washington/
has 4 stories and over 7,000 square feet of office space for
Annapolis area, or possible association with retirement-minded
Annapolis’ city dock, enjoy meeting friends and walking to the
practitioner. “Top Dollar Paid.” Reply in strictest confidence to
many restaurants, bars and shops after work. Offices range in
410.539.7100, or File No. 63-87.
size from 80 - 364sf and come furnished with desk and chairs,
you to configure anyway you want!!! Located in the heart of
high speed Internet service, mailbox, use of conference room.
STEELEY & ASSOCIATES is a diversified service
Some offices have spectacular views of the market house and
provider operating in the Maryland and DC areas. We seek to
city dock!!! Whole or half floors are available now. Offices can
offer succession and continuity solutions by partnering with
be combined to include reception areas, copier rooms, etc.
retirement-minded CPAs. Transitions of 1-5 years are preferred,
while ensuring for complete privacy. Perfect for a law office,
though immediate or longer time frames will be considered. If
architect, accountant, marine business or anyone who wants to
you are a CPA considering retirement, or simply transitioning to
impress their clients!!!. You have to see the space for yourself
other lines of work, please call (301) 263-8519, or email
to appreciate its location and potential.
info@steeley.com. All conversations will be kept confidential.
MARYLAND PRACTICE FOR SALE: Towson
Please call Cindy Reiner at (410) 849-2667, or Janis Rotner (410) 849-2444 for a showing.
Audit, Tax & Accounting Practice - annual gross $250K. Wellestablished practice, located in a prime area with good cash flow to owner. For more information call 1-800-397-0249. Also, view
job openings
listings, inquire for details and register for free email updates at www.AccountingPracticeSales.com.
LOOKING FOR TAX ACCOUNTANT, during
THINKING OF SELLING YOUR PRACTICE?
tax season, for a family business in Baltimore. Contact
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@apsleader.com.
TaxLady2004@yahoo.com for more information.
TAX PROFESSIONAL FOR BUSY SEASON Kenneally & Company, a progressive, medium-size, Towson CPA firm of highly motivated professionals, seeks like-minded individuals capable of individual and/or business tax return preparation. Familiarity with ProSystem fx is a plus. Flexible hours, incentive compensation and a pleasant working environment are just a few of our benefits. Forward your resume via e-mail to mlindemon@jlkcpas.com, or via fax (410) 321-9809.
office space EXECUTIVE OFFICE SPACE AVAILABLE with multiple amenities and free parking. Our business center provides a professional environment, features wellappointed reception areas, offices and conference facilities. Enhanced communication and administrative support services are also available. For terms and availability, please call us at 301.263.8519 or e-mail Steeley.Associates@gmail.com. Location zip is 20817. OCTOBER 2013
TAX SENIOR: SC&H Tax & Advisory Services is seeking experienced Senior Tax professionals for significant, growthoriented career opportunities in Sparks, MD and McLean, VA locations. As a Tax Senior with SC&H you will provide compliance and consulting services to our middle market and publicly traded clients. We seek individuals familiar with the tax compliance process, the ability to understand and identify a broad range of general tax issues, preparation of complex tax returns, forming opinions on outcomes of tax issues, strong work paper techniques and the professionalism necessary to effective communicate with clients, peers and
CONTINUED ON PAGE 52
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CLASSIFIEDS SC&H professionals at all levels. You’ll have the opportunity to develop and pursue creative strategies while using the latest technologies. Your primary responsibilities include tax planning, compliance and research
Qualified candidates will have the following: -Bachelors degree in Accounting, Finance or other business related field, Masters in Tax and CPA -A minimum of 5 yrs public accounting experience preparing
projects for SC&H’s clients.
and reviewing tax returns and advising companies on their tax
Qualified candidates will have:
-Significant experience with pass through entities, Partnerships
-Bachelor’s degree in Accounting, Finance or other business
etc.
related field.
-Previous Big 4/ National or Regional firm experience
-2 or more years of public accounting experience (Big 4, national
performing tax compliance, research and consulting
or large regional firm experience preferred).
-Excellent research, writing and interpersonal skills
-Excellent Research, Writing and Interpersonal skills.
strategy
SC&H Group is a management consulting firm with more
SC&H Group is a management consulting firm with more than
than 20 years experience advising leading companies on
20 years experience advising leading companies on accounting,
accounting, tax, profitability and strategy solutions that
tax, profitability and strategy solutions that deliver exceptional
deliver exceptional business results. SC&H has been named
business results. SC&H has been named among the Top 100
among the Top 100 firms by Accounting Today and Inside
firms by Accounting Today and Inside Public Accounting, has
Public Accounting, has appeared on the “Future 50” list of
appeared on the “Future 50” list of Smart CEO magazine, has
Smart CEO magazine, has been a multi-year award winner
been a multi-year award winner of the “Best Places to Work”
of the “Best Places to Work” by the Baltimore Business
by the Baltimore Business Journal, and has been named one
Journal, and has been named one of the “Best of the Best
of the “Best of the Best CPA Firms.” With approximately 300
CPA Firms.” With approximately 300 employees, SC&H has
employees, SC&H has offices in Maryland, Virginia and Georgia,
offices in Maryland, Virginia and Georgia, and provide services
and provide services throughout the United States.
throughout the United States.
At SC&H we attract, hire, and retain the most results-oriented
At SC&H we attract, hire, and retain the most results-oriented
goal-driven professionals, and offer outstanding salary and
goal-driven professionals, and offer outstanding salary
benefit packages which include outstanding bonus opportunities,
and benefit packages which include outstanding bonus
(ESOP) employee stock ownership plan, 401K, and firm
opportunities, (ESOP) employee stock ownership plan, 401K,
sponsored vacations. Take the first step in joining our firm by
and firm sponsored vacations. Take the first step in joining our
applying on line www.scandh.com
firm by applying on line www.scandh.com
An EOE
An EOE
TAX MANAGER:
SC&H Tax & Advisory Services is
searching for a Tax Manager with a strong tax compliance and consulting background to work in our Sparks, MD headquarters. The Tax Manager serves as the focal point of contact between our firm and our middle market clients. He/ she will lead
AUDIT SENIOR: SC&H Group is currently searching for a Senior Auditor to join our growing team in our Sparks, MD headquarters. As a part of our team you will: * Provide clients with accounting, audit and business
tax engagement teams on various projects, handle all tax
consulting services
compliance and consulting issues for assigned clients, keep
* Maintain a strong client focus by effectively serving client
clients abreast of technical tax changes affecting their industry,
needs and developing productive working relationships with
identify opportunities to cross-sell, look for opportunities to
client personnel
expand tax services, cultivate and maintain effective relationships with audit counterparts on mutual audit/tax engagements and will mentor, train and assist senior and staff associates.
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* Stay abreast of new accounting pronouncements/standards, current business and economic developments and/or other guidance relevant to the client’s business STATEMENT
* Display teamwork, integrity, leadership, initiative and work
Preferred candidates will be knowledgeable about nonprofit
with team members to set goals and responsibilities for specific
accounting, committed to the organization’s mission and
engagements
willing to assist the organization in meeting its financial and
* Take intelligent risks on assignments without being told what to do or the need for detailed guidance
programmatic goals. For more information, please contact Ed Kilcullen, State Director, at ed@marylandcasa.org.
knowledge with team members and enhance service delivery
SQUIRE, LEMKIN + COMPANY, LLP’S IS LOOKING FOR AN AUDIT SENIOR. Our staff
* Understand SC&H and its service lines and actively encourage
rates our medium-sized CPA firm as a great place to work! Our
team members to contribute ideas and identify potential
firm culture is designed to encourage our staff to learn, grow
opportunities to apply SC&H services
and assume responsibility. We emphasize a balance between
* Utilize technology and data analytics to continually learn, share
personal and professional life. And we have an audit senior Requirements: * Bachelor’s degree in Accounting or Finance, with a minimum GPA of 3.2 * 2-4 years previous Audit experience working for another Public Accounting firm (Big 4, National or large regional public accounting firm experience preferred). * CPA (or working toward designation) is required * Proficiency in Microsoft Office Suite SC&H Group is a management consulting firm with more than
position available! Play a leadership role in our growing audit practice, train and mentor our staff, and contribute to our teamoriented approach to the high quality work we do. Conveniently located in Bethesda/Rockville area, we provide audit, review and tax services to high quality non-profit clients throughout the Washington DC metropolitan area. Seeking a professional with 3 – 5 years of non-profit audit experience, CPA preferred. Competitive salary, comprehensive benefits, and collegial working environment. To submit your resume visit www. support@mycpas.com.
tax, profitability and strategy solutions that deliver exceptional
SQUIRE, LEMKIN + COMPANY, LLP’S IS LOOKING FOR A TAX SENIOR. Our staff rate
business results. SC&H has been named among the Top 100
our medium-sized CPA firms as a great place to work! Our
firms by Accounting Today and Inside Public Accounting, has
firm culture is designed to encourage our staff to learn, grow
appeared on the “Future 50” list of Smart CEO magazine, has
and assume responsibility. We emphasize a balance between
been a multi-year award winner of the “Best Places to Work”
personal and professional life. And we have a tax senior
by the Baltimore Business Journal, and has been named one
position available! Play a leadership role in our growing tax
of the “Best of the Best CPA Firms.” With approximately 300
practice, train and mentor our staff, and contribute to our team-
employees, SC&H has offices in Maryland, Virginia and Georgia,
oriented approach to the high quality work we do. Conveniently
and provide services throughout the United States.
located in Bethesda/Rockville area, we provide audit, review and
20 years experience advising leading companies on accounting,
tax services to high quality clients throughout the Washington At SC&H we attract, hire, and retain the most results-oriented
DC metropolitan area. Seeking a professional with 3 – 5 years
goal-driven professionals, and offer outstanding salary and
of tax experience. Competitive salary, comprehensive benefits,
benefit packages which include : Team Profit Sharing Bonuses,
and collegial working environment. To submit your resume visit
(ESOP) employee stock ownership plan, 401K, and firm
www.support@mycpas.com.
sponsored vacations. Take the first step in joining our firm by applying on line www.scandh.com An EOE
MARYLAND CASA SEEKS CPA FOR BOARD OF DIRECTORS: Maryland CASA (Court Appointed Special Advocates) Association, a statewide nonprofit organization dedicated to ensuring the rights of abused and neglected children to live in safe and permanent homes, is seeking a CPA to join its Board of Directors. This is a volunteer position that involves approximately four hours per month, attendance at meetings and events, and other responsibilities. OCTOBER 2013
WANT TO SUBMIT A CLASSIFIED AD? To submit a classified ad, please visit macpa. org/submitclassifieds, or contact Amy Moran at 443.632.2319, or by email amym@macpa.org.
CONFIDENTIAL ADS: Replies to confidential ads will be addressed to the file number in care of: Amy Moran MACPA 901 Dulaney Valley Road, Suite 710 Towson, MD 21204
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MARYLAND ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS Dulaney Center II | 901 Dulaney Valley Road, Suite 710 Towson, MD 21204 | www.macpa.org 410. 296.6250 | Fax: 410.296.8713
Celebrate the Profession at the
THE
3
BIG
E V EN TS FOR CPA S
CPA SWEARING IN CEREMONY 11/4/13
macpa.org/celebration
Promoting and Protecting CPAs in Maryland 1/15/14 2014 macpa.org/cpaday
Connecting, protecting, & achieving start here.
INNOVATION SUMMIT The CPA Event of the year. 6/16/14 macpa.org/summit