MACPA Statement // October 2013

Page 1

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


Prepare your business for the changing landscape of employee benefits and health care reform

WE WILL GUIDE YOU every step of the way

control costs

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health care reform

RJP will guide you through Health Care Reform to help you understand what actions you need to take and how the laws will affect your business. We offer a customized cost impact analysis to help you start making changes now that will position your company for the future. The timely Health Care Reform cost impact analysis is free for MACPA members and your clients.

RJP & Associates, Inc. is the MACPA’s Exclusive Preferred Provider for employee benefits.

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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,

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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

Please call Rich Bacher at Aon Insurance Services at 800.221.3023 or visit www.cpai.com/premierad today! Endorsed by:

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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

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9

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Brought to you by CCH

| 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.

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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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NEW! Accounting Certificate now available to prepare you to sit for the CPA exam.

For more information, visit: www.ubalt.edu/admissions *According to the 2013 Baltimore Business Journal Book of Lists, the University of Baltimore ranked first in terms of the number of alumni managing or co-managing Baltimore’s largest 25 accounting firms.

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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

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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.

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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


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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).

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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


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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

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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.


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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

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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

50

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

51


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.

52

* 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

53


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


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