New Jersey CPA - Fall 2021 by New Jersey Society of CPAs

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THE MAGAZINE OF THE NEW JERSEY SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS

4 Gubernatorial Candidates — Leading the Charge Governor Phil Murphy and Jack Ciattarelli, Republican nominee for Governor, responded to NJCPA’s questions on what’s needed to improve New Jersey’s economy, small business opportunities, living conditions and tax challenges. Find out how their answers stack up.

RALPH ALBERT THOMAS, CPA (DC), CGMA Chief Executive Officer & Executive Director rthomas@njcpa.org THERESA HINTON Chief Operating Officer thinton@njcpa.org DON MEYER, CAE Chief Marketing Officer dmeyer@njcpa.org RACHAEL BELL Managing Editor rbell@njcpa.org KATHLEEN HOFFELDER Senior Content Editor khoffelder@njcpa.org DIANE ESPIRITU Senior Graphic Designer despiritu@njcpa.org THE NEW JERSEY SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS 105 EISENHOWER PARKWAY SUITE 300, ROSELAND NJ 07068 973-226-4494 | NJCPA.ORG #NJCPAMAG READ NEW JERSEY CPA ONLINE AT NJCPA.ORG/ NEWJERSEYCPA

TO ADVERTISE OR P R OV I D E S PONSORED CON T EN T IN NEW J E R S E Y C PA Visit njcpa.org/advertising or contact Eileen Proven at eproven@njcpa.org or 862-702-5640

8 Pivoting Through the Pandemic:

The Way Forward

Persevering through a challenging business environment, accounting professionals looked back on what worked during the pandemic. They will need to determine whether they can keep those strategies, operations and flexible work schedules moving forward.

10 Domestic Manufacturing in a Pandemic:

All Hustle and Grit

Staying afloat during a pandemic is no easy task, but thriving during that time takes another level of strategy. Find out how one New Jersey manufacturer powered through with strength, determination and ingenuity.

12 Celebrating Entrepreneurship:

Innovating Beyond the Pandemic

During the pandemic, accountants have worked tirelessly to innovate, create and adopt new ways of doing business using advanced technology and novel ways of communicating. See what new companies, niche products and different careers developed.

2 CLOSE UP

Making Our Voices Heard in Trenton 14 ACCOUNTING, AUDITING & ATTEST

5 Risk Assessment Challenges for Audits 16 BECOMING A CPA

The Road to 150: Four Options for Maximizing the Final 30 Credits

17 BUSINESS MANAGEMENT

21 RISK & COMPLIANCE

The Benefits of a Fractional CFO

Leveraging Data Analytics for Fraud Prevention and Detection

18 FIRM MANAGEMENT

The Office — Will It Make a Comeback? SPONSORED CONTENT

Understand Top Business Trends to Enhance Consultations with Clients 20 PROFESSIONAL DEVELOPMENT

The Power of Successful Negotiation

23 TAX

7 Tax-Saving Opportunities for Real Estate Investors SPONSORED CONTENT

Cost Segregation in a Post-COVID-19 World 25 TECHNOLOGY & INFORMATION MANAGEMENT

4 Useful Excel Macros

26 NJCPA NEWS

y 2021 Ovation Awards y Lotteries Help Offset Members’ Financial Costs 43 CLASSIFIEDS 44 MEMBER PROFILE

Dr. Evelyn McDowell, CPA, CGMA

CLOSE UP

Making Our Voices Heard in Trenton BY JOSEPH F. SCUTELLARO, CPA, CHAIRPERSON OF THE NJ-CPA-PAC AND PARTNER AT COHNREZNICK LLP

The New Jersey CPA Political Action Committee (NJ-CPA-PAC) is one of the surest ways for CPAs to make their voices heard in Trenton. By contributing to the NJ-CPA-PAC, CPAs can help bring the issues they care about to the forefront with the New Jersey Legislature. CPAs have helped bring about change by supporting many issues from the Pass-Through Business Alternative Income Tax Act (BAIT), an entity-level tax designed to circumvent the state and local tax (SALT) deduction limitations, and overall tax reform in New Jersey to halting initiatives that increase CPAs’ and their clients’ liability. The NJCPA has recently backed legislation that protects businesses from unfair coronavirus-related lawsuits. Businesses that followed all the rules for protecting employees and customers from COVID-19 should not be subjected to unfair lawsuits. We also supported legislation that called for reducing the statute of limitations for professional malpractice from six years to two years and opposed legislation that banned non-compete and non-solicitation covenants. We have also drafted our own legislation to provide for capital gains tax breaks. For these reasons and more, we need NJCPA members to support the NJ-CPA-PAC. LAGGING BEHIND More work needs to be done to help ensure that CPA-supported legislation is enacted and a pro-business environment is fostered. By contributing to the NJ-CPA-PAC, CPAs help to elect pro-CPA candidates who support our positions on important legislation. All funding from the NJ-CPAPAC comes from CPAs making voluntary contributions. That’s why it’s so important to be involved. To be frank, the contributions of CPAs lag far behind other professionals and groups. The average annual contribution per NJCPA member is only $4, while the average for the realtors association is $30, the dental association is $52 and the trial lawyers is $175! So, it’s time that CPAs

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increase their participation for the sake of the profession and their livelihood — and to put the PAC on a level playing field with political opponents. HOW IT OPERATES Established in 1977, the NJ-CPA-PAC is a nonprofit, bipartisan entity that represents the interests of CPAs and the business community. A 12-member board of trustees governs the NJ-CPA-PAC. The board selects which candidates will receive donations based on NJ-CPA-PAC member feedback, input from NJCPA staff and guidance from the Society’s Trenton-based lobbying firm.

The NJ-CPA-PAC board holds meetings three to four times annually, and all contributors to the PAC are invited to attend and have a say. This is a particularly important time to get involved with all seats in the Legislature and the Governor’s office up for election this year. The support of NJCPA members is critical to ensure the CPA profession has a seat at the table when important proposals are being debated and that we’re on a level playing field with our opponents in the legislative arena. Please take a moment to contribute now at njcpa.org/pac to allow us to make sure the voices of CPAs are heard in the state capitol.

New Jersey CPA (ISSN 1534-6692) is published quarterly by the New Jersey Society of Certified Public Accountants, 105 Eisenhower Parkway, Suite 300, Roseland, NJ 07068. Issue No. 88 Copyright © 2021 New Jersey Society of Certified Public Accountants. Annual membership dues include $9 for a one-year subscription to New Jersey CPA magazine. Members may not deduct the subscription price from dues. Periodicals postage paid at Roseland, NJ, and at additional mailing office. POSTMASTER: Send address changes to New Jersey CPA, 105 Eisenhower Parkway, Suite 300, Roseland, NJ 07068-1640. The materials and information contained within New Jersey CPA are offered as information only and not as practice, financial, accounting, legal or other professional advice. The opinions expressed herein are those of the authors and not necessarily those of the New Jersey Society of CPAs. Publication of an advertisement in New Jersey CPA does not constitute an endorsement of the product or service by the New Jersey Society of CPAs.

NEWS AND ANALYSIS

on professional issues impacting accounting professionals

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y New Jersey legislative changes y Macro business trends y The local and national economies y Accounting, tax and regulatory updates

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UPCOMING PROGRAMS

Professional Issues Update September 13 — Live Webcast September 14 — Webcast Replay

Q&A with Jack Ciattarelli September 20 — Live Webcast

NEW JERSEY CPA | FALL 2021

GUBERNATORIAL CANDIDATES — LEADING THE CHARGE

PHIL MURPHY

JACK CIATTARELLI

New Jersey CPA asked New Jersey’s Republican gubernatorial candidate Jack Ciattarelli and incumbent Governor Phil Murphy to weigh in on specific challenges facing the Garden State, how to improve its economic well-being and what priorities should be the main focus if elected or re-elected. economic growth and create jobs. Most urgently, it requires an extensive recovery from the COVID-19 pandemic that has upended our state, economy and livelihoods. We can’t go back to a system that benefited only the wealthy and well-connected. We must continue building opportunities for all New Jerseyans, including those who have historically been left behind. That’s exactly what we’ve said we would do from day one, and we will continue to lead as we always have — by moving New Jersey forward.

What big challenges do you think New Jersey will face over the next four years and how would you lead the state to get through them?

Governor Murphy: Our state has faced significant fiscal challenges over the last few decades. Yet over the past three-plus years, we were able to accomplish so much — including raising the minimum wage, ensuring equal pay for equal work, and making the first full pension payment in 25 years, thereby meeting our obligations to thousands of New Jersey families and saving the state billions of dollars. Today, we are proud to say our population has

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grown to 9.3 million and that New Jersey is the best state in the country to raise a family. We recognize there is still more work to be done. The challenges we’ve faced, particularly over the past year, have laid bare longstanding disparities that require a strong, equitable agenda to move our state forward. This agenda includes building a stronger economic future for all New Jerseyans through investments in infrastructure, small businesses and higher education. It requires continued efforts to incubate and build new industries, like our clean energy economy, to stimulate

Jack Ciattarelli: New Jersey is in an economic death spiral. We lag the nation in job growth, wage growth and fiscal health. Making matters worse are significant structural state budget deficits and billions in unfunded liabilities specific to public worker retirement benefits (i.e., pension and health). New Jersey must become more economically dynamic and regionally competitive. We must grow our economy. To address these challenges . . . After Governor’s Murphy’s prolonged and unscientific shutdown, we must get New Jersey’s small business/Main Street economy back up and running and thriving. We must also ensure that New Jersey’s infrastructure is safe, reliable and able to support, in every way, a growing state economy. And we

desperately need a flatter, simpler state tax structure that incentivizes robust economic growth and attracts entrepreneurs, businesses and workers.

What are your top three priorities for the state over the next year?

Governor Murphy: 1. Recovering from the pandemic to ensure that every family and every small business has the opportunity to succeed in New Jersey. I especially want to ensure that the recovery addresses the centuries-old social and racial inequities that COVID-19 laid bare. 2. Building a stronger economic future for all New Jerseyans through investments in infrastructure, small businesses workforce development, and continuing the historic investments in Pre-K, K-12 and higher education. 3. Creating the nation’s leading clean energy economy, including a robust offshore wind industry. Jack Ciattarelli: New Jersey can and should be a place where people can afford to live, work, open a business and retire. To become that place, New Jersey must address the three crises that paralyze our state fiscally and economically; namely, our worst-in-the-nation property taxes; our worst-in-the-nation business environment; and our bloated and inefficient state government. As governor, I will do all that is necessary to provide each and every citizen opportunity and security. And so, my priorities will be to: 1) make New Jersey more affordable by lowering property taxes with a new school funding formula; 2) create more jobs by igniting our economy with less regulations and major pro-growth reforms to our tax code; and 3) reduce spending by downsizing, modernizing and streamlining our state government.

Do you feel the business environment in New Jersey needs to be improved? What should be done to help small businesses?

Governor Murphy: Our administration has worked tirelessly to improve the business environment, accelerate sustainable economic growth, and support jobcreating small businesses in New Jersey.

Moody’s has upgraded New Jersey’s credit outlook to positive, and as recently noted by Bloomberg, New Jersey “is one of only seven states with an improving economy over the last three and a half years.” There is still more work to do, but over the past three-plus years, our accomplishments include: y Unveiling a statewide economic development plan to build a stronger and fairer economy while creating the country’s most inclusive innovation economy; y Developing and passing a multi-billion dollar economic recovery package that brings accountability and labor protections to New Jersey’s incentives programs; y Reinvigorating and coordinating workforce development programs through the Jobs NJ plan, including growing apprenticeship programs and connecting worker training efforts to labor market demand; y Increasing the allocation of Neighborhood Revitalization Tax Credits by 50 percent;

y Appointing the state’s first Chief Innovation Officer and enhancing the state’s digital government services capacity through the New Jersey Office of Innovation; y Re-activating and funding the Commission of Science, Innovation, and Technology to facilitate investments in the innovation economy; and y Opening Choose New Jersey offices in Europe and India and completing trade missions to Germany, India and Israel. Additionally, through the New Jersey Economic Development Authority, some 63,000 businesses have received a lifesaving grant or loan. This year, we invested an additional $235 million in small business relief for New Jersey businesses that continue to suffer economic effects of the pandemic, bringing the total amount of aid to $420 million since the beginning of the pandemic. Jack Ciattarelli: To attract residents, entrepreneurs and businesses, New Jersey desperately needs an improved business environment, especially for small businesses.

NEW JERSEY CPA | FALL 2021

Simply put, we need to declare economic war on our neighboring states. Having started and run two successful Main Street businesses, I understand firsthand what policies will make us more regionally competitive, especially for small businesses so badly impacted by the pandemic. As Governor, I will create a dynamic economy that will provide opportunity, jobs, economic growth and prosperity. We will no longer have the worst business environment in the nation. Specific to small businesses, we will eliminate regulations that make it unnecessarily hard and expensive to start and grow a business. We will also make changes to the tax code that incentivize entrepreneurs and provide the financial wherewithal for growth.

$500 rebates for families making under $150,000 per household or $75,000 for a single individual with at least one dependent child. That rebate put cash directly in the pockets of over 760,000 New Jersey families. Prior to taking office, I called for sweeping and fundamental reforms to New Jersey’s corporate tax incentive system that drained billions of taxpayer dollars and failed to create promised jobs. Despite the lavish and wasteful incentives, New Jersey lagged behind in every economic measure. I enacted an economic recovery package in 2021 that creates a new incentive system that will accelerate sustainable economic growth, support job-creating small businesses and uplift middle-class families.

Do you think businesses and wealthy individuals should be paying more taxes to help fund state government?

Jack Ciattarelli: Twelve years ago the tate budget was $29 billion; three years ago it was $34 billion. It is $45 billion today, up 33 percent in less than four years under Governor Phil Murphy. Governor Murphy has also made our personal taxes the third highest in the nation; our business taxes and property taxes the highest in the nation; and, on top of significant gas tax increases, he increased tolls. The average New Jerseyan now pays nearly $1 million in taxes – 50 percent of their income – over their lifetime (the national average is $530,000). The last thing New Jersey’s residents and business owners need are

Governor Murphy: My administration is committed now more than ever to building a stronger and fairer New Jersey for every family, not just the wealthy and well-connected. Last fall, I enacted a millionaires tax to further that commitment, an especially critical step given the financial realities exacerbated by the COVID-19 pandemic. By implementing a tax on the wealthiest among us, we have been able to provide middle-class New Jerseyans relief through

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higher taxes. What we desperately need is to restructure and simplify our tax code, eliminate harmful regulations and reduce the size and cost of state government by modernizing operations, reducing headcount, reforming benefits and creating jobs to reduce Medicaid expenses. Only then will our economy grow.

LEARN MORE Sept. 20, 12-1 p.m., Live Webcast

ISSUESWATCH LIVE: Q&A WITH JACK CIATTARELLI

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We have extended an invitation to to Governor Murphy’s campaign for a Q&A session. Check njcpa.org/ issueswatch for updates.

READ MORE Governor Murphy's campaign

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Jack Ciattarelli's campaign

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SURGENT’S INDIVIDUAL TAX CAMP THURSDAY, SEPT. 23 8 CPE CREDITS

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CPE for your Success Throughout the Tax Life Cycle Explore these events and more at NJCPA.ORG/TAXEVENTS

NEW JERSEY CPA | FALL 2021

PIVOTING THROUGH THE PANDEMIC: THE WAY FORWARD By KATHLEEN HOFFELDER

NJCPA SENIOR CONTENT EDITOR

As the pandemic progressed, accounting executives began to ask the tough questions: How long will it take for my firm, our clients or my company to rebound? What are some ways in which we will be operating differently? What’s the best way forward?

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Accountants overcame many challenges last year and, in some cases, altered the way they work forever. Now accounting professionals everywhere face many decisions: Keep on operating like they have been or switch gears permanently and adapt to quicker, more efficient and more reliable technology, expanded customer service and flexible hours? What worked well during the pandemic and what will continue to work afterwards? ADAPTING ON THE FLY As Lee Frederiksen, Ph.D., managing partner at Hinge, a strategy, research, branding and marketing firm, explains, many clients discovered that they can easily work with their CPA firm remotely. “At the end of the day, these adjustments brought about improvements in how we recruited, operated and delivered our services,” he said. “As with many firms, we have learned that working from home offers flexibility that can help address talent shortages.” Those who were able to adapt and initiate new offerings benefitted from the pandemic, he said. According to a June 2021 report conducted by the Association for Accounting Marketing (AAM) and the Hinge Research Institute

(accountingmarketing.org/publications/ surveys/cpa-marketing-budgets), almost half of firms said the COVID-19 pandemic had an overall positive effect on them. “These developments have been a boon for many firms, with over 45 percent of firms reporting a net positive business impact from the crisis. They have garnered new opportunities and found ways to get further ahead of competitors,” explained Frederiksen. MANAGERS ON THE MOVE When the pandemic shuttered offices, it also closed the gate on in-person training, onboarding and instructing. Managers had to be creative in working with staff, outlining plans and keeping on top of workloads. For CPAs, that meant Zoom calls, screen sharing and lots of chatting over Microsoft Teams and other products. As Christina White, CPA, MS, manager at Traphagen CPAs & Wealth Advisors, explains, “In person, I could easily follow up with my team members for status updates, scheduling or review throughout the day. When the stay-at-home order commenced, and we began to work on a fully remote basis, that effortless flow of communication was also abruptly shut down.” Managers had to take a step back and evaluate the best method of working with staff and clients. White recognized early on that she needed to identify problems as they arose and implement changes to daily routines if working from home was going to be successful. “I quickly found that establishing more formal and scheduled

CONTRIBUTORS (in order of appearance)

LEE FREDERIKSEN, PH.D.

CHRISTINA WHITE, CPA, MBA

NICOLE DeROSA, CPA, MAcc

Managing Partner Hinge

Manager Traphagen CPAs & Wealth Advisors

Senior Tax Manager Wiss

KEN HUFFMAN, CPA President CPA to CPA, Inc.

one-on-one meetings with staff was necessary. This allowed us to have dedicated time for reviewing questions together, prioritizing tasks and even just to keep in contact and make sure that everyone was okay,” she said. White immediately implemented weekly team scheduling meetings to monitor workflow, shifted projects around as needed and ensured that all deadlines and client needs would be met. Microsoft Teams and their chat tool was also used for more frequent, informal contact, she said. “As the pandemic continued to change rapidly, it remained important to continue to monitor and evaluate these procedures, identify problems and implement adjustments as needed along the way. Maintaining effective communication all throughout helped my team to thrive during unprecedented times, and we continued to provide our clients with the highest possible level of service,” she added. Other managers also understood the value of extra communication with staff and clients. “In a virtual environment, it is extremely easy to fly under the radar. It takes more effort to be visible to your staff; you really must make a concerted

effort. By being visible and putting your best foot forward, you are also perceived as approachable,” says Nicole DeRosa, CPA, MAcc, senior tax manager at Wiss. “Effectively managing your staff, as well as the relationships with your staff, is key to a cohesive department and pleasant work environment — it is a win-win.” Though DeRosa always maintained a hands-on approach to working with staff and clients, she had even more contact during the pandemic. “The teacher in me comes out, and demonstrating or showing a staff member something seems to go a lot further than simply giving an answer over a Teams chat,” she adds. “Pre-pandemic, I would always send ‘thought you might be interested in this’ emails as well as holiday cards, etc. During the pandemic and going forward, nothing has seemed to change except perhaps the frequency of the ‘thought you might be interested in this’ email being sent since the tax laws changed so drastically in a short period of time during the height of COVID.” Those accounting professionals who used effective tools like video conferencing to connect with staff as well as clients and customers were ahead of the pack.

As Ken Huffman, CPA, president of CPA to CPA, Inc., explains, “The inability to look directly into the other person’s eyes is certainly not ideal, but the ability to see the other person and not just hear a voice is a bonding step.” Video conferencing, he adds, provided the ability to schedule meetings faster and back-to-back as opposed to in-person. “Clients can simply click a few buttons to enter a meeting space — now that’s efficient!” While he said nothing can take the place of a face-to-face meeting accompanied by a firm handshake, video conferencing platforms have been “an innovative asset to the fabric of our business workings.” While all businesses are decidedly altered from before the pandemic, accounting professionals everywhere are left to ponder how effectively their organization and their clients’ or customers’ business operated at that time and what could have been done differently. Accounting staff should expect their previous ways of doing business to be disrupted considerably.

NEW JERSEY CPA | FALL 2021

DOMESTIC MANUFACTURING IN A PANDEMIC: ALL HUSTLE AND GRIT By MITCH CAHN UNIONWEAR

Thanks to the pandemic, “Made in USA” manufacturing has become more than a buzzword or feel-good catch phrase; it is now an imminent national security priority.

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While saying we want to bring manufacturing back to the U.S. sounds good, doing so successfully — and profitably — is not easy. For more than 25 years, I have run a unionized manufacturing company in Newark. In that time, I have learned that Made in USA manufacturing is not only possible but inevitable, especially given recent events. Manufacturers can succeed here, even with relatively high labor costs. The key to domestic manufacturing success isn’t cutting corners or hiring the cheapest labor. Rather, it’s embracing a lean manufacturing mindset. BENEFITS OF LEAN MANUFACTURING Supply chain management is daunting during a crisis and even more challenging during times of shortages. During the pandemic, we had both. As a result, many New Jersey manufacturers leaned into lean manufacturing and successfully pivoted their businesses towards products and services to stay afloat during the pandemic. The first thing lean manufacturers must do is constantly free up bottlenecks. Every system has a bottleneck since a production line can only produce as many widgets as its slowest operation. Speeding up the slowest operation automatically makes the next-slowest operation the newest bottleneck. Even if the production line is automated and perfectly balanced — unless the sales team is selling and the administrative staff is processing orders at the same exact rate — there will be backlogs and shortages, overproduction and underproduction. Overproduction sinks companies. Underproduction sinks economies.

When the economy is humming, bottlenecks caused by completely outsourcing manufacturing to another continent are invisible because it’s just throwing money at the problem. In the spring of 2020, our health care system experienced a string of bottlenecks that could not be solved by throwing money at it. Shortages of masks, gowns and respirators led to a shortage of healthy medical professionals and their ability to treat patients, causing significant bottlenecks across the supply chain.

For our business, in order to pivot into manufacturing protective equipment, we had to face and anticipate these constraints and develop workarounds, such as: y Buying from other industries y Working with competitors and our labor union as business partners y Thinking way outside the box, like asking Newark’s mayor to make a PSA on the radio to find home sewers who could work for us in the absence of available workers

None of this could have been possible if we hadn’t already had a lean manufacturing mindset. This lean mindset was a huge asset to us during the pandemic, as we were able to pivot quickly to supply healthcare workers with PPE while keeping most of our workforce safely employed. I couldn’t pretend to know anything about requirements on medical textiles to someone who does. What Unionwear had expertise in is hustling — hustling in sourcing, prototyping and delivering —

because that is the only way we are able to thrive despite all our competition coming from low-wage countries. So, when the shortage in personal protective equipment (PPE) hit, we didn’t sell face shields. We didn’t even sell “Made in USA.” We sold hustle. THINKING OUTSIDE THE BOX Thinking outside the box meant taking big risks. Whether it was a state, military, hospital, medical or union executive who asked us to help, we decided to pull back the curtains and let them know every single step we were going to take to solve their

problem. We shared the unexpected obstacles we might encounter and how we would counter them, and then we encouraged the customer to share those ideas with other vendors they were working with — and to not hesitate to contact us. Under normal circumstances, we are loathe to give away our trade secrets. But, in this case, sharing that information might mean that someone I know is less likely to experience a shortage of medical professionals if they get the virus next month.

Furthermore, during the pandemic our workstyles changed materially. For one, dedication to process became the only way for administrative workers to work remotely while factory workers worked in house. We had tried for years to eliminate paperwork and the need for physical folders, and the pandemic got us there. In addition, there was far less supervision. Fortunately, our workers really stepped up and took on a lot more responsibility. There was a new focus on safety and accountability as well. The pandemic made budgeting difficult and projections nearly impossible. Early 2020 was all about survival. But as it became clear that the government was going to backstop our failure with Paycheck Protection Program (PPP) loans and tax incentives, we became eager to invest in the future and build scale. We built an entirely new level of government business during the pandemic while we waited for our event-related merchandise business to return. And when that does return in full, we expect to have a much larger business. LESSONS LEARNED The most important result for our business was the idea that pivoting into a new market or line of business is always possible, even when times are not desperate. We have become much more open to suggestions for building new production lines for a single client or for a finite time period. We also are far more focused on results and less on facetime for our managers and salespeople. Finally, our success in predicting and responding to shortages has us constantly on the lookout for black swans and random events that can lead to opportunities for growth. Ultimately, it was our hustle, grit and determination that got us through the pandemic. Mitch Cahn is president of Unionwear, a manufacturer of union Made-in-USA hats, bags and binders for the promotional, fashion and uniform markets. He can be reached at mitch@unionwear.com.

NEW JERSEY CPA | FALL 2021

CELEBRATING ENTREPRENEURSHIP: INNOVATING BEYOND THE PANDEMIC By KATHLEEN HOFFELDER

NJCPA SENIOR CONTENT EDITOR

The COVID-19 pandemic turned the accounting profession on its collective head, and it came out more respected and more essential than ever before.

Accountants, along with their nonaccounting colleagues, worked tirelessly this past year to innovate, create and adopt new ways of servicing customers and clients, making budgets work on less and organizing remote staff to be as effective as possible. Accountants everywhere — from academics to interns to managing partners and CFOs — contributed to new service offerings, such as COVID-19 resource centers, in-house cybersecurity programs, niche advisory practices and better uses of data and analytics. RISING TO THE CHALLENGE Many accounting firm leaders and CFOs/ controllers pushed themselves and their companies to new heights and in new directions to assist and retain their clients. As Eileen Monesson, CPC, a principal of PRCounts, LLC, explains, those accounting advisories that took a business-as-usual approach with their clients during the pandemic had a tougher time retaining them in the midst of burgeoning competition

that seemed to be bursting with helpful pandemic resources. “Although most people would not consider the pandemic as being innovative, it was. People, processes and opinions changed. Just as the smart phone transformed how we communicate, the pandemic altered how we live, forcing businesses to adapt to survive and thrive,” she said. Peter Mares, CPA, MBA, co-founder of Growth CPR, explains that accounting firms that offer cash management advisory services will not only help keep their clients in business, but they will also accelerate their own growth. “Business owners excel at their core competency, and that core competency is often not financial management. Accounting firms have the necessary training, experience and market permission to expand beyond compliancebased services and offer valued and valuable advisory services,” he said. “No other business challenge is as prevalent or as threatening to businesses than cash management. Understanding and managing cash flows is critical to the survival of any business,” he added. Sarah Krom, CPA, managing partner of SKC and Co. CPAs, LLC, and a past NJCPA president, noted that the pandemic was an ideal time to launch the firm’s data analytics service line. “The pandemic has catapulted that service line faster than we could have planned. The immediate need for predictive analytics — using historical data to predict future results — was our first project. We created a model for cash flow projections based on existing company data. This became a priority as companies went into lockdown and, in some cases, panicked over where the next dollar or sale would come from,” she said.

CONTRIBUTORS (in order of appearance)

EILEEN MONESSON, CPC

PETER MARES, CPA, MBA

SARAH KROM, CPA

SCOTT STERN, CPA, CCIFP

Principal PRCounts, LLC

Co-founder Growth CPR

Managing Partner SKC and Co CPAs

Audit Principal Grassi

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DR. BARRY R. PALATNIK, CPA, MBA

DR. SEAN STEIN SMITH, CPA, DBA, CMA, CGMA, CFE

Assistant Professor of Accounting Stockton University

Assistant Professor Lehman College (CUNY)

SUSAN FIRRIOLO, CPA, CISA Director and Founder Pet Rescue 990 Project

“Once we were able to easily create a cash projection product, the next layer was to add assumptions that the business owners could manipulate and see in real time what the impact to their cash flow would be if they made various decisions,” she added. “Once clients saw that we could extract, clean and analyze their data from various sources into something meaningful to them, the possibilities became endless. We created models for project manager profitability, service firm inefficiencies and inventory reorder management within months of the pandemic hitting.” Grassi & Co. also expanded its services during the pandemic by creating the Grassi Loan Application Asset Services program and soon realized it could help small businesses beyond their client base. Scott Stern, CPA, CCIFP, audit principal at Grassi, explains, “At the height of the pandemic, we held a virtual ‘Small Business Support Saturday’ that welcomed small businesses across the country to call in and get free advice on Paycheck Protection Program (PPP) loans, tax incentives and other strategies for surviving the crisis. Dozens of our partners and other professionals donated a full day of their personal time to answer questions from more than 350 small businesses.” PERMANENT CHANGES Dr. Barry R. Palatnik, CPA, MBA, assistant professor of accounting at Stockton University, believes the accounting profession will continue to have challenges as a result of COVID-19. But some will be more prepared than others. The way Palatnik delivered course content and communicated to his students changed immediately once the government closed businesses and schools. “My accounting students upon graduation should be ahead of the curve regarding COVID-19 work environment changes. The students are already working with cloud-based technology by accessing class projects and software off campus,” he added. Dr. Sean Stein Smith, CPA, DBA, CMA, CGMA, CFE, assistant professor at Lehman College (CUNY), noted that the pandemic not only caused professionals to rethink how their work is being done but also to reevaluate career trajectories and

directions. “To put it simply, the pandemic and associated economic ripple effects caused everyone in the profession to reassess (and improve) our collective digital capabilities and familiarity,” he said. “These are not trends that seem to be a fad. Rather, these shifts look like permanent changes to the business environment.” Susan Firriolo, CPA, CISA, now the director and founder of Pet Rescue 990 Project, is one example of someone who made a new career move. “The point is, pandemic or not, take your passion and align it with your profession. Be happy.” After discovering a rescue pit bull named Billie, who was used for breeding and fighting and was dumped by her owners at the age of seven, was to be euthanized the next day, she adopted the dog. As Firriolo noted, “I wanted to save more pets. I decided I could help by providing affordable accounting solutions exclusively to 501(c)(3) pet rescues. I searched the IRS for registered charities using key words like rescue, paws, animal and others. I made cute little cards and mailed them out.” Surprised by the huge response, she knew she had the makings of a business and had to run the business virtually and be able to

provide affordable services during and after the pandemic to be effective. “I started with a virtual accounting system and added apps based on each rescue’s needs. Since it was a time of uncertainty, I prepared detailed proposals with services, prices, a timeline and responsibilities.” Regardless of their motivation — whether it was survival, client retention or an interesting niche market to explore — accounting professionals have proven how resilient and resourceful they were amid the COVID-19 pandemic. One thing is clear: their many entrepreneurial initiatives and better uses of technology and data and analytics are here to stay.

LEARN MORE Sept. 20, Oct. 25 and Nov. 20 LEVERAGING CHANGE AND INSPIRING INNOVATION

Nov. 10, Live Webcast

HOW TO INNOVATE WHEN YOUR BOSS SAYS ‘NO’

On Demand

DISRUPTIVE BUSINESS INNOVATION

njcpa.org/events

NEW JERSEY CPA | FALL 2021

ACCOUNTING, AUDITING & ATTEST

5 Risk Assessment Challenges for Audits BY MICHAEL CARO, JR., CPA, BEDERSON LLP

2. SUFFICIENTLY TEST THE CONTROLS To be able to assess control risk at less than high, an auditor must have performed a test of controls on the audit areas and relevant assertions. Preparing a narrative or memorandum on the internal controls that are in place in the respective audit areas without performing any test of controls on the audit areas is not sufficient to assess control risk at less than high. Testing of the actual controls that are in place must be performed, and the details of those tests must be documented to support the control risk assessment.

Risk assessments establish the audit approach and procedures that need to be performed on an audit. As auditors plan an audit, they assess the risk of material misstatement of a company or organization at the assertion level so that they can determine the level of substantive audit testing that needs to be performed. The assessed risk of material misstatement is determined by assessing the inherent and control risk at the relevant assertion level of a company by its significant audit areas. These risk assessments and conclusions in audits can be challenging, but they are necessary and important to perform an efficient and effective audit. These risk assessments also need to be documented appropriately, and that is where auditors commonly run into some issues with the audits. Common pitfalls in the documenting of risk assessments include the following: 1. Not documenting the inherent risk assessment considerations 2. Assessing control risk at less than high without sufficiently testing controls 3. Not documenting risk at the relevant assertion level 4. Not assessing risk on all significant audit areas

FALL 2021 | NEW JERSEY CPA

5. Not properly documenting the linkage between risk assessment and procedures performed 1. DOCUMENT INHERIT RISK Inherent risk is the susceptibility of an assertion about a class of transaction, account balance or disclosure to a misstatement that could be material without considering any internal controls. Although auditors are always able to explain the reasons for the determination of the inherent risks assessed on a company or organization being audited, those considerations are not always documented appropriately. It is important to document the reasons for the inherent risk assessment determination for each significant audit area and relevant assertion. Some audit areas and assertions might have inherent risk assessment set at high, for example, due to transactions being difficult to audit or containing complex calculations. Others might be set at low or moderate because the calculations are simple and the transactions are not difficult to audit. Documenting these considerations is important to determine an auditor’s reasons for their assessments, their audit approach and to properly design the audit procedures being performed.

3. USE THE RELEVANT ASSERTION LEVEL There are six categories of assertions when an auditor makes their risk assessments: y y y y y y

Existence or occurrence Completeness Rights or obligations Accuracy or classification Valuation or allocation Cutoff

When documenting risk assessments, an auditor needs to make an assessment for each relevant assertion, regardless of whether an auditor has identified any specific risks related to that assertion. Risk assessment can no longer be performed by the audit area and must be performed by the assertion level. 4. ASSESS ALL SIGNIFICANT AUDIT AREAS An audit area is considered significant if it contains significant transaction class, material account balance, fraud risk or other significant risk, or if it requires significant disclosures. It is important to perform a risk assessment on all the audit areas considered significant in order to be able to develop an appropriate audit approach and procedures for that area. If a significant area is missed, the audit can be ineffective. Additionally, assessing risk on

ACCOUNTING, AUDITING & ATTEST

a nonsignificant audit area can cause the audit to be inefficient. 5. PROVIDE PROPER DOCUMENTATION The risk assessed should link to the nature, timing and extent of audit procedures performed. The risk assessment documentation should reference — or comments should be made — linking the assessments to the audit work performed. Audit procedures might need to be tailored to do the risk assessments, or the risk assessments might need to be revised due to changes needed in the audit procedures being performed. The risk assessments are developed at planning but can change throughout the audit process. These changes should be documented, and the risk assessments should be updated during the audit. Explaining the reasons why a certain audit approach and certain audit procedures were taken on an audit is not enough without any documentation for those

decisions. Documentation of the risk assessments that lead to those audit approaches and audit procedures are necessary for an audit to be in compliance with the risk assessment standards.

DO MORE JOIN THE ACCOUNTING & AUDITING STANDARDS INTEREST GROUP

njcpa.org/groups

Michael Caro, Jr., CPA, CFE, PSA, is a partner at Bederson LLP. He is a member of the NJCPA and can be reached at mcaro@bederson.com.

AUDITING ARTICLES AND RESOURCES

LEARN MORE

njcpa.org/topics/auditing

Sept. 7, Sept. 24, Oct. 12, Oct. 27, Nov. 1 or Nov. 16

COMMON AUDIT DEFICIENCIES

Sept. 20, Live Webcast

FOCUS ON ENGAGEMENT QUALITY: HOW TO AVOID DEFICIENCIES IN PEER REVIEWS

Nov. 9, Live Webcast

ACCOUNTING AND AUDITING CONFERENCE

njcpa.org/events

NEW JERSEY CPA | FALL 2021

BECOMING A CPA

The Road to 150: Four Options for Maximizing the Final 30 Credits BY JO ANNA M. DIZON, CPA, WISS & COMPANY LLP

construction, technology, pharmaceutical and more. For example, a student interested in music could take a music theory course. Those credits could help set them apart when applying for an accounting position in the music industry.

The journey to becoming a CPA is filled with myriad requirements and, oftentimes, various twists and turns. The first step to achieve this desired goal is the education requirement. The path for the first 120 credits is usually straightforward, since most students follow the university’s curriculum in taking the required classes needed to earn a bachelor’s degree in accounting. The remaining 30 credits are not as straightforward, as students are offered more flexibility in choosing classes to take to complete the educational requirement needed for licensure. The freedom that these last 30 credits affords can be a double-edged sword. While the freedom and flexibility provide a great opportunity for candidates to branch out and focus on specific subjects of their choosing, it can be daunting for those overwhelmed by numerous options. The road to 150 credits is an experience that will be different for each person, and there is no one-size-fits-all approach. Below are four options to consider when selecting courses to fulfill the 30 credits. 1. IMPROVE ACCOUNTING KNOWLEDGE Most students have one or more areas of the accounting curriculum they could improve on. Devoting time to these areas by taking additional classes would certainly help strengthen any weak areas.

FALL 2021 | NEW JERSEY CPA

Peruse the college course catalog and select subjects/topics that will enhance knowledge in those areas. Gaining more exposure in a specific area can also help prepare candidates for the CPA Exam. 2. SELECT AN ACCOUNTING CONCENTRATION College is a great time to begin to explore various interests within the accounting profession. Candidates don’t have to wait for an internship or first job to begin this exploration. The accounting field is quite extensive; the opportunities in the profession are endless, just like the various options for concentrations. Forensic accounting, data analytics, finance and real estate are just a few of the many concentrations in which students can take a deeper dive. For candidates who are not looking to obtain a master’s degree, this is a great option for the remaining 30 credits. 3. EXPLORE GENERAL CLASSES OF INTEREST For students who are at the point where they feel comfortable with the number of accounting-related courses they have already taken, there is a benefit to exploring outside of the accounting arena. Students can consider other classes or courses that intrigue them and spark their interest. The accounting profession caters to many different industries: music, real estate,

4. EARN A MASTER’S DEGREE Another popular option that most candidates consider is the master’s degree route. Colleges often have a five-year accounting track where a candidate can earn both a bachelor’s degree and a master’s degree. Some colleges even offer a hybrid BS/MS where you can earn both degrees in less than five years. There are various graduate programs to choose from such as an MST (Master’s in Taxation), MAcc (Master’s in Accountancy) or MBA (Master’s in Business Administration). These are all great ways to earn a dual degree while at the same time fulfilling the necessary 150 credits. This option is also more straightforward, as candidates can simply follow the five-year track of course offerings as outlined by their university. The road to 150 is not set in stone. Each person’s path for the last 30 credits can be customized to meet their needs and prepare them for a successful accounting career. Jo Anna M. Dizon, CPA, is a senior tax associate at Wiss & Company, LLP. She is a member of the NJCPA and can be reached at jdizon@wiss.com.

SPONSORED CONTENT

Cost Segregation in a Post-COVID-19 World BY ROBERT RAHNER, COST RECOVERY SOLUTIONS LLC

COVID-19 hit the world with a vengeance, and the commercial real estate industry took a hard hit. Both tenants and building owners struggled in the pandemic’s wake. While some sectors are beginning to recover, a still-fragile future leaves many investors searching for a plan to recoup from devastating losses as well as position themselves to weather more potential storms. Some may have had to invest in unexpected building improvements or even had to repurpose a building just to survive the pandemic’s impacts, leaving them short on cash. It’s important to know that these investments can have tax advantages that accounting professionals can offer their clients. One such incentive is the IRSapproved, engineering-based tax strategy of cost segregation, which accelerates depreciation deductions on commercial real estate property to save tax dollars immediately.

Table 1. Average Cash Flow Increase Generated by a Cost Segregation Study*

COST SEGREGATION OVERVIEW While commercial buildings generally must be depreciated over 39 years, the IRS has designated certain types of building components and land improvements that can instead be depreciated at five, seven or 15 years (such as flooring, accent lighting, decorative millwork and landscaping). Under the Tax Cuts and Jobs Act (TCJA) of 2017, an additional immediate 100-percent bonus depreciation incentive effectively cut that rate even further to just one year. Cost segregation studies identify which assets in and around a property qualify for these reduced depreciation schedules. Reclassifying qualified assets can save investors tens of thousands or even millions in income taxes. A study can be performed on new construction/acquisitions or even on previously owned property (up to 15 years) without amending tax returns.

y Taxpayers can apply 100-percent bonus depreciation, which effectively allows the full expensing of costs in the year incurred.

THE PAYOFF FOR INVESTORS Table 1 details the percentage of assets that can typically be reclassified and the resulting tax savings gained based on different property types.

FALL 2021 | NEW JERSEY CPA

PROPERTY TYPE

TYPICAL % RECLASSIFIED

FIRST YEAR TAX SAVINGS

FIRST YEAR DEPRECIATION

APARTMENT BUILDING

24%

$475,800

$1,309,400

HOTEL

23%

$460,000

$1,228,300

MEDICAL OFFICE

20%

$400,000

$1,081,300

OFFICE BUILDING

17%

$340,000

$934,400

RETAIL STRIP CENTER

18%

$360,000

$963,300

WAREHOUSE

16%

$320,000

$885,400

*Based on a $5M building eligible for 100-percent bonus depreciation

A quality study can provide critically needed tax relief to many in a postCOVID-19 world. While cost segregation is not a new concept, the Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020 set a 15-year depreciation schedule for qualified improvement property (QIP) made to the interior of non-residential buildings. Key benefits include the following:

y The change is retroactive to 2018. A retroactive study does not require an amended tax return; taxpayers can simply submit Form 3115 to take the deduction in the current tax year. y Potential tax losses created by largedepreciation deductions may be used to offset taxable income generated from other properties or carried forward to future years. Not all improvement costs are eligible for the 15-year QIP classification. “Structural” costs such as exterior windows, exterior HVAC units, elevators and others must remain as 39-year property. VENDOR QUALIFICATIONS AND STUDY COMPONENTS Studies are typically initiated either directly from a property owner or their

accountant. Approaches used to perform studies range from the IRS-preferred “fully engineered study” to a “rule of thumb” approach. Because of these variations, the American Society of Cost Segregation Professionals (ASCSP) was formed to help establish credentials, create/maintain quality standards and provide a code of ethics for the industry. Using an ASCSP-certified professional helps ensure the quality of the study and that elevated COVID safety procedures are followed. As the commercial real estate industry continues to look for relief from COVID-19 effects, implementing cost segregation as a tax strategy may be a critical way for investors to regain significant lost ground, increase their cash flow to reinvest in upcoming projects or improvements and look forward to a brighter future. Robert Rahner, CFA, ASA, CCSP, is the managing director of Cost Recovery Solutions LLC. He can be reached at rob@crscostseg.com.

Cost Recovery Solutions LLC works with accountants of commercial property owners to maximize depreciation deductions, reducing client income taxes and boosting their return on investment. Services include cost segregation studies, energy tax services and tangible asset appraisals/reviews. Learn more at CRS’ Capabilities Brochure.

TECHNOLOGY & INFORMATION MANAGEMENT

4 Useful Excel Macros BY JAIME CAMPBELL, CPA, MBA, CGMA, CIT, MCT, TIER ONE SERVICES

An Excel macro is a program that can automate tasks in Excel. Macros can best be used to automate tasks that don't require professional judgment, and they can be used in both nonprofit and forprofit settings. Learning the language of macros — Visual Basic for Applications (VBA) — saves time and reduces errors on recurring tasks. Start with good principles of design: workbook structure, flexible cell references and the user experience. The most efficient workbook structure has an input area for raw data, the macro that uses that data and the output. The result is a template which is reusable month after month, transferable to other clients and transferable to other practitioners. Use named ranges in your VBA instead of cell references so the macro continues to work even if a row or column is inserted and the necessary data is no longer in those ranges. Refer to those range names in the VBA code such as Range(“Amount”) or Range(“TransactionDate”). Best practices for the user experience include user controls, status bar updates and pop-ups. Controls such as command buttons are in the Developer tab. Use confirmation pop-ups such as MsgBox (“Your data is ready for import into the accounting system.”). For long, iterative macros, the status bar can be updated, for example, Application.StatusBar = CurrentRecordNumber & “ of ” & TotalRecords & “ complete.” Following are four examples of useful macros. 1. ALLOCATING PAYROLL Arrange the input area to accept imported or pasted information from a .csv file of the payroll report for the gross wages and other key figures for each employee. In a separate workbook tab, have a vertical listing of each employee with adjacent columns for the areas of percent allocation such as jobs, functional expenses or locations. These percentages can be hand-entered upon setup, or they can be formulas that read an

export from a time-tracking system. In separate columns, multiply those percentages and the payroll figures. Have the macro build from scratch a single entry with the correct debits and credits in the layout compatible with your upload tool. The macro will involve creating columns with the following information: y Identical data in each row such as the transaction date y Separate numerical data in each row such as the allocated payroll y Custom text data in each row, such as the transaction memo with the employee’s name

2. IMPORTING TRANSACTIONS When a financial institution doesn’t link with the accounting systems, sometimes the solution is to download a .csv and import into the accounting system. Program the macro to copy and paste the columns of source data into the correct layout in order to be compatible with the upload tool and to change certain positive numbers to negative ones where needed for the disbursements. The macro can also be used to split up the database between cash receipts and cash disbursements, if that is required by the upload tool. The macro can export the results in .csv format and either prompt the user to select a location to save the file or detect the workbook location and place the .csv in the same folder. 3. SUMMARIZING E-COMMERCE TRANSACTIONS In a high-volume environment, don't duplicate the revenue database in the accounting system. However, when the

transactions are too complex to run a report in the e-commerce system and make a journal entry, a macro might be needed to prepare a daily summary of gross revenue, sales tax payable, shipping income, merchant service fees, discounts and returns. Start with the data exported from the external system and, using worksheet functions, identify the appropriate General Ledger account for each transaction. Some Excel functions can look for keywords in the sales description, or the XLOOKUP function can be used to look up the price and identify the correct income account. Program the macro to place the data onto the output tab in a layout compatible with the upload tool. It can summarize the transactions by account, by day. 4. MULTI-LOCATION REPORTING Link an option button object to a macro in order to instantly show or hide columns containing reports for different locations. This is especially useful for presenting a proposed budget to a board of directors for a multi-location nonprofit. The macro can be a simple as two lines of code: ActiveSheet.Range(“AllLocations”). EntireColumn.Hide ActiveSheet.Range(“Lawrenceville”). EntireColumn.Show Jaime Campbell, CPA, MBA, CGMA, CTT, MCT, is the chief financial officer of Tier One Services, a fractional CFO and outsourced accounting firm serving $1 million to $20 million organizations. She is a member of several NJCPA interest groups and can be reached at jcampbellcpa@tieroneservices.net.

LEARN MORE Sept. 9, Sept. 22, Oct. 7., Oct. 20, Nov. 8 or Nov. 10, Live Webcast

EXCEL ESSENTIALS FOR TODAY’S ACCOUNTANT: HOW TO BECOME AN EXPERT IN ONE DAY

njcpa.org/events

NEW JERSEY CPA | FALL 2021

NJCPA NEWS

NJCPA OVATION AWARDS HONOR SUPERSTARS WHOSE EXEMPLARY EFFORTS AND STELLAR ACHIEVEMENTS ARE ADVANCING NEW JERSEY’S ACCOUNTING PROFESSION. We are pleased to recognize those emerging leaders, innovators, champions of diversity, educators, volunteers, notable women and other individuals who have made a difference in 2020/21. Read more about the recipients at njcpa.org/awards

LIFETIME LEADER Celebrating the standout NJCPA member of exceptional merit for remarkable contributions to the accounting profession over the course of their career.

JOHN (JACK) F. DAILEY, JR., CPA, RMA, PSA RETIRED PARTNER AT BOWMAN & COMPANY LLP

Jack’s selfless commitment to propelling the accounting profession forward is unmatched. Whether it’s teaching, authoring revisions on ethics code of conduct, or simply lending an ear, Jack is always ready to serve his fellow accountants. As a past president of the NJCPA, a past president of the Southwest Jersey Chapter, a participant in numerous accounting interest groups and committees, as well as an appointed member of the New Jersey State Board of Accountancy, Jack is truly a lifetime leader.

FALL 2021 | NEW JERSEY CPA

Bowman & Company LLP is proud to congratulate John F. Dailey, Jr., CPA, RMA, PSA on receiving the NJCPA Ovation Award Recognition!

NEW JERSEY CPA | FALL 2021

NJCPA NEWS

DIVERSITY, EQUITY & INCLUSION Honoring the champions of diversity, equity and inclusion (DEI) who work passionately to make the accounting and finance profession open, welcoming and fair to encourage and promote initiatives and change, regardless of race, sexual orientation, religion, age, gender, disability status or other dimension of diversity.

FALL 2021 | NEW JERSEY CPA

JUAN ARANA, CPA SUPERVISOR AT WILKINGUTTENPLAN

As a member of Rider University’s Aspiring Accounting Professional Program, Juan assists accounting students of diverse backgrounds and ethnicities. Having immigrated to the U.S. from Columbia at age 10, Juan knows first-hand how to mentor students and prepare them for interviews, which has led to job opportunities at WilkinGuttenplan. He also provides free QuickBooks Online consulting services to minorityowned businesses.

DAWN PERRI

ELENA RICHARDS

CHIEF HUMAN RESOURCES OFFICER AT PKF O’CONNOR DAVIES, LLP

CHIEF DIVERSITY AND INCLUSION OFFICER AT KPMG LLP

As PKF O’Connor Davies’ champion of diversity and inclusion, Dawn acts as a mentor to all. Her monthly heritage and cultural celebrations initiative and her implementation of DEI training programs have created a work environment that is welcoming and encouraging to all employees. Dawn also participates on a nonprofit board that serves underrepresented communities.

Elena leads KPMG’s national Inclusion and Diversity team and works closely with management and the board of directors to advance the firm’s Accelerate 2025 initiative. Elena is a Certified Professional Coach (CPC) and is a member of the AICPA National Commission on Diversity & Inclusion.

LAURA M. CROWLEY, CPA, MBA DIRECTOR AT CITRIN COOPERMAN & COMPANY, LLP

A leader in diversity, equity and inclusion, Laura co-founded Citrin Cooperman’s Empowering Diversity and Gender Equality committee and has worked to bring awareness and culture change to the firm through educational programs, panel discussions, newsletters and other activities. Laura partnered with the firm’s corporate learning and development team to provide firm-wide diversity training to all employees.

TANNISHA A. TROUTMAN, CPA AUDIT AND ASSURANCE SENIOR MANAGER AT DELOITTE

A born leader, Tannisha works tirelessly to develop the next generation of CPAs and co-leads Deloitte’s Talent Council. She has won the Deloitte Pacesetter Award and participates in its NJ Inclusion Council and National D&I Management Development Program. She promotes diversity in the community as well, serving at Good Shepherd Services, the Harlem YMCA and Junior Achievement of New Jersey.

NJCPA NEWS

Congratulations Dawn Perri 2021 NJCPA Ovation Award Winner for Diversity, Equity & Inclusion

From All Your Friends at PKF O’Connor Davies pkfod.com 914.381.8900

pkfod.com NEW JERSEY CPA | FALL 2021

NJCPA NEWS

EMERGING LEADERS Recognizing savvy superstars who have been working in the accounting profession 10 years or less and have had noteworthy professional accomplishments, combined personal and professional achievements that merit special recognition, and/or actively participated in the advancement of the profession or NJCPA.

CARLY R. BRANCATO, CPA

SOFIA CORDERO, CPA MANAGER, TRANSPORTATION AND LOGISTICS AT MAZARS USA LLP

SENIOR AUDITOR AT WILKINGUTTENPLAN

Carly is a leader in the making. She is a mentor for new hires and interns on auditing and is a buddy to the younger staff going through their first year. Carly is also a mentee to a college student through the NJCPA mentor program. She is an active member of the firm’s selective Advisory Council and part of the firm’s Future Council group, where she participates in discussions on how to steer emerging leaders’ careers.

Sofia cultivates productive team environments by keeping peers engaged and motivated. She is a member of the NJCPA Emerging Leaders Council and Student Programs and Scholarship Committee. At Mazars, she is an internal coach for a participant of the Mazars Transformational Leadership Program and is member of the Women@Mazars Committee.

The WilkinGuttenplan Family Congratulates our NJCPA Ovation Award Winners!

Tom Hasard Innovation

Juan Arana Diversity, Equity and Inclusion

Carly Brancato Emerging Leader

732.846.3000 | wgcpas.com NEW JERSEY I NEW YORK CITY 30

FALL 2021 | NEW JERSEY CPA

NJCPA NEWS

JAKE D. DERICKS, CPA, MPAc

LARISSA M. HOFFMANN, CPA

JOSEPH F. HUNT, CPA, MBA

SENIOR ASSOCIATE AT CITRIN COOPERMAN & COMPANY, LLP

AUDIT SENIOR AT DELOITTE

AUDIT SENIOR AT SOBELCO

Larissa leads by example. She runs the NJCPA CPA Career Awareness program for the Deloitte office and is a key liaison for Deloitte with the NJCPA. An outstanding and consistent top performer, Larissa is well respected by her C-suite clients and takes on increasingly difficult conversations and meetings with top client management. She is expected to be a future leader in the accounting profession.

Joe is not only passionate about his work, but he truly cares about his clients as well as staff. He is a forward thinker and is always looking for ways to enhance audit processes and growth areas for the firm. He is not only skilled technically, but he is also involved in business development. In addition, Joe radiates positivity, which is an important quality of a leader.

As a key member of the audit team, Jake has become a go-to resource for many of the staff on matters of accounting and auditing. A born leader, Jake helps to develop and lead training for new hires and interns. He is also known as a key problem solver when it comes to accounting software, helping to routinely train staff and troubleshoot.

Congratulations! We are proud to join NJCPA in honoring Tannisha Troutman, Larissa Hoﬀmann, and Vincent Galluccio for their ovation award recognizing exemplary eﬀorts and stellar achievements.

NEW JERSEY CPA | FALL 2021

NJCPA NEWS

RUDY T. IPEKCIAN, CPA

ROBERT N. SLOOTMAKER, CPA

CHRISTINA M. WHITE, CPA, MS

TAX MANAGER AT BDO USA LLP

ASSURANCE PRINCIPAL AT UNTRACHT EARLY LLC

MANAGER AT TRAPHAGEN CPAs & WEALTH ADVISORS

Robert’s quiet-yet-commanding, calm-yet-persistent nature is what makes him a natural-born leader. His passion for new ideas helps drive his firm, the profession and his community forward. His drive to push not only himself, but also the firm, and his commitment to giving back to his community are the hallmarks of what make Robert a consummate accounting professional.

Christina has assumed a greater level of responsibility at her firm with training, mentoring and supervising associates, while managing and coordinating accounting functions, state tax nexus and taxation in New York. She participates on the NJCPA Bergen Chapter Scholarship Committee, Emerging Leaders Council and the NJCPA CPA Career Awareness Program.

As one of the youngest tax managers at his firm, Rudy has the respect and admiration of his colleagues. He is the president of the NJCPA Passaic County Chapter and has done a tremendous job guiding the chapter through the current uncertain climate. Rudy’s work ethic and dedication is contagious to all who know him.

FALL 2021 | NEW JERSEY CPA

NJCPA NEWS

EXCEPTIONAL EDUCATORS Recognizing full-time college accounting educators who distinguish themselves with their excellence in teaching and prominence in state-wide or regional activity to actively encourage careers in accounting and by serving as role models in academia.

GEORGE C. ROMEO, PH.D.

MARSHALL E. SAUNDERS, CPA, MBA

PROFESSOR AT ROWAN UNIVERSITY

ACCOUNTING INSTRUCTOR AT RUTGERS BUSINESS SCHOOL

George has been an accounting professor at Rowan University (formerly Glassboro State) since 1979. His commitment to teaching excellence has touched the lives of thousands of students and launched a variety of successful careers — many of his former students are now practicing CPAs. He has won the Lindback Distinguished Teaching Award and multiple Professor of the Year and Wall of Fame Awards.

Marshall has left his mark on both academia and the accounting profession. He cares about his students and is always open and eager to help them, including taking a position as faculty advisor to the Beta Alpha Psi honor society. He is also an adjunct professor at Rockland Community College-SUNY. Marshall has been active at the NJCPA and is a past president of the Passaic County Chapter.

A Heritage of Excellence A Focus on Results A Partner for Success

Congratulations to our friend and colleague for receiving the 2021 Emerging Leader Award

Joseph Hunt, CPA Senior Accountant

SobelCoLLC.com Livingston, NJ | Woodcliff, NJ | Paoli, PA NEW JERSEY CPA | FALL 2021

NJCPA NEWS

DOUGLAS P. STIVES, CPA, MBA

RON WEST, CPA/PFS, CFP®, J.D., LL.M.

SPECIALIST PROFESSOR AT MONMOUTH UNIVERSITY

CHAIR, DEPARTMENT OF ACCOUNTING, TAXATION & LAW AT SILBERMAN COLLEGE OF BUSINESS AT FAIRLEIGH DICKINSON UNIVERSITY

Truly a legend, Doug is known for his ability to break down complicated tax material into understandable terms. Having been quoted in The New York Times, Wall Street Journal, CNBC, CNN and other media outlets, Doug is well-known in the accounting industry. At the NJCPA, he is admired for becoming president at the age of 42, being chair of the Monmouth/Ocean Chapter and teaching CPE programs.

Admired both in and out of the classroom, Ron knows the value of integrating education with the accounting profession. With a background in law and accounting, Ron brings real-world experiences to his teaching. He helped design and launch a Wealth Management Advisory minor and Financial Planning concentration.

IMPACT Recognizing those who dedicate meaningful time and energy to any of the following commendable endeavors: giving back to the community; sharing professional expertise to support others; or advancing the interests and needs of the accounting profession through active engagement, leadership or advocacy.

MEGGAN L. CIACCIA, CPA, CGMA

REYNOLD CICALESE, CPA, MST

SHAREHOLDER AT MONTECINO & CIACCIA, P.A.

ASSOCIATE PARTNER AT ALLOY, SILVERSTEIN, SHAPIRO, ADAMS, MULFORD, CICALESE, WILSON & CO.

Meggan is all about making a difference. Several years ago, she took a more active role in inspiring others in accounting, particularly female professionals. Currently as president of the National Association of Women Business Owners, she regularly empowers female business owners. She also volunteers at her local elementary school, where she encourages girls to do anything they set their mind to.

FALL 2021 | NEW JERSEY CPA

Ren is an unwavering leader both in the workplace and the community. He played an essential role in helping businesses stay afloat during the pandemic and presented four sold-out webinars to more than 350 business owners. He received the Voice of Business Young Professional Award in 2020 from the Burlington County Chamber of Commerce. Ren is a board member for the Cooperative Business Assistance Corporation.

A wide range of skills, one idea of excellence.

Mazars is pleased to congratuate Alisha Jernack, Ken Pogrob, Sofia Cordero and all of the other honorees of the New Jersey Society of CPAs 2021 Ovation Awards. Alisha, Ken and Sofia emobody Mazars’ core values and principles by driving innovation and demonstrating leadership while empowering the people they work with. Find out more at mazars.us NEW JERSEY CPA | FALL 2021

NJCPA NEWS

VINCENT GALLUCCIO, CPA

KENNETH POGROB, CPA

CHRIS J. SCHIFFER, CPA, CFP, MBA, AIF

MANAGING DIRECTOR AT DELOITTE

PARTNER AT MAZARS USA LLP

SENIOR VICE PRESIDENT AT WEALTH ENHANCEMENT GROUP

A staunch supporter of growing the CPA pipeline and fostering the development of the next generation of CPAs, Vincent truly leads by example. He takes an active and personal approach to retaining top talent at Deloitte, understanding that people are critical to a company’s success. He has been the firm’s CPA Champion in New Jersey for years, and his support for CPA Exam takers is noteworthy.

Ken is all about giving back. As chair of the #WeAreMazars Committee for the past 10 years, he has made a significant impact on the community through the firm's many charitable efforts. In addition to bringing all firm partners and staff together internally, Ken leads the firm’s philanthropic endeavors. He has also been involved in the NJCPA Student Programs & Scholarships Committee for more than 10 years.

Chris is a point person for business and industry professionals at the NJCPA. As the leader of the Business & Industry Professionals Interest Group, Chris is well versed in what’s needed to keep accounting professionals thriving in business. He brings more than 30 years of experience in the financial services industry to his leadership role at the NJCPA.

A CCOUNTANTS

AND

A DVISORS

A P R O F ES S I O N A L C O R P O R AT I O N

TAX | ACCOUNTING | AUDITING | ADVISORY Cherry Hill

FALL 2021 | NEW JERSEY CPA

Hammonton

856.667.4100

AlloySilverstein.com

NJCPA NEWS

MARITA SCIARROTTA DEPUTY DIRECTOR AT THE NEW JERSEY DIVISION OF TAXATION

Marita has been invaluable to the NJCPA and its members during the COVID-19 pandemic, going above and beyond to keep Society staff and practitioners informed about tax filings and payment and policy changes made by the New Jersey Division of Taxation. A subject matter expert on tax investigations, compliance and enforcement, Marita understands the importance of discussing issues stakeholder to stakeholder.

ROBERT J. VALAS, CPA/ABV, CFE, CGMA

JOSEPH H. WISNIEWSKI, CPA

PARTNER AT CULLARI CARRICO LLC

PARTNER AT PREMIER ACCOUNTING SERVICES, PC

Robert knows the true meaning of making an impact. He was the principal drafter of three comment letters to standard setters. As an active member of the NJCPA Accounting and Auditing Standards Interest Group and the leader of the AICPA Auditing Standards Work Group, he informs accounting professionals about important auditing standards.

Joe has frequently been cited as one of the main reasons why students have gone on to pursue an accounting career. For the past 12 years, Joe has volunteered to talk to high school accounting classes. His passion and enthusiasm for the accounting profession along with his career insight are greatly appreciated by the students.

IN RECOGNITION OF EXEMPLARY EFFORTS AND STELLAR ACHIEVEMENT IN ADVANCING NEW JERSEY’S ACCOUNTING PROFESSION 2021 IMPACT

Robert Valas

CPA/ABV, CFE, CGMA

The Impact award recognizes those who dedicate meaningful time and energy to any of the following commendable endeavors: giving back to the community; sharing professional expertise to support others; or advancing the interests and needs of theaccounting profession through active engagement, leadership or advocacy.

CULLARI CARRICO LLC

55 Lane Road, Ste 300, Fairfield New Jersey 07004 973.406.3955 | www.cullaricarrico.com

NEW JERSEY CPA | FALL 2021

NJCPA NEWS

INNOVATION Honoring those who are transforming accounting at lightning speed: driving innovation of all kinds, as it relates to accounting — leveraging new technologies, using forward-thinking data analytics strategies, implementing alternative business models or rolling out experimental engagement strategies to improve employee culture.

THOMAS HASARD, CISSP

ALISHA A. JERNACK, CPA

IT DIRECTOR AND PRINCIPAL AT WILKINGUTTENPLAN

PARTNER AT MAZARS USA LLP

Not only is Tom the cybersecurity leader at WilkinGuttenplan, he participates in Lean Six Sigma initiatives to improve professional services processes and manages the IT managed service business with a state-of-the-art workflow feedback system. He also leads the firm’s Innovation Council. Over this past year, Tom has been the firm’s MVP, successfully transitioning to a fully remote platform.

DR. ETHAN KINORY

JAIME C. RAPPS, CPA

ASSISTANT PROFESSOR AT RUTGERS UNIVERSITY-CAMDEN

AUDIT SENIOR MANAGER AT GRASSI

Dr. Kinory has co-authored several academic papers on leading-edge technologies that have been published in the American Accounting Association’s (AAA) Journal of Emerging Technologies. He has presented at national AAA conferences on blockchain and has integrated it into his coursework. He received a National Research Award on blockchain in 2020 and the AICPA National Educator Award in 2019.

Despite working in an industry that is often hesitant to make costly upgrades to technology, Jaime helps his nonprofit clients with cost benefit analyses and implementation strategies that help them make confident decisions and realize optimal ROI from their technology. He also helps clients measure and monitor their ongoing performance through KPIs, benchmarking and technology assessments.

FALL 2021 | NEW JERSEY CPA

MARIA T. ROLLINS, CPA, MST MANAGING PARTNER AT KRS CPAs, LLC

Innovating on the fly comes naturally to Maria. From putting a flexible work program in place and her forward-looking approach to HR to successfully serving clients remotely, she’s earned a spot on ROI-NJ’s Influencers Power List for the past three years and was named a 2021 Leader in Finance by NJBIZ.

Alisha led Mazars’ COVID-19 business advisory team and new service offering, the “Reshape Crisis Recovery Program.” It was such a success that ABC7 NY filmed Alisha and her client for a feature segment on how working with the right business advisor helped them survive a year of the pandemic. She is also active in the NJCPA Monmouth/Ocean Chapter, Student Programs & Scholarships Committee and served a four-year term as a student mentor.

ERIC YUAN SENIOR MANAGER IN ASSURANCE AT ERNST & YOUNG LLP

Due to Eric’s innovative use of analytics, he was tasked with transitioning the EY audit program to a digital-first approach, helping to become the basis for the EY Digital Global Accounting Methodology that is used globally. He led a team in developing analytical templates to present data in new ways and drive results for clients.

NJCPA NEWS

WOMEN TO WATCH Applauding the growth and success of female NJCPA members for their leadership, potential, contributions, and/or commitment to fostering the success of their colleagues.

ASHLEY ACKERMAN, CPA

AVANI BHARUCHA, CPA, MBA

KATHLEEN P. BLOCH, CPA, MBA

SENIOR MANAGER AT HOLMAN FRENIA ALLISON, P.C.

ASSOCIATE PARTNER AT BARATZ & ASSOCIATES, P.A.

CFO AT CYTOSORBENTS, INC.

Truly a woman to watch, Ashley is extremely motivated. Within one year of joining her firm in 2019, she was promoted to senior manager, grew her network from nothing, brought in clients including one from across the country and took over as director of quality control. She is also an adjunct professor at Kean University, a board member of Coastal Habitat for Humanity and an NJCPA mentor.

A role model to many, Avani was promoted to associate partner in 2020 — the first female partner in the history of her firm. Avani is a first-generation immigrant who moved to the U.S. from India in her teens and who was not a native English speaker. Her accomplishments have inspired staff members and promoted an increased awareness of the importance of diversity and inclusion.

Kathy has been a top financial executive for more than 20 years. She has been the CFO at CytoSorbents since 2013 and previously held COO and CFO titles at a variety of organizations. In 2016, she won the NJBIZ Public Company CFO of the Year Award. She is credited with spearheading CytoSorbents’ up-listing to NASDAQ and ensuring ongoing compliance. She is the NJCPA Mercer Chapter vice president.

Congratulations to Jaime Rapps and all of the

NJCPA Ovation Award Winners

Jaime Rapps, CPA Senior Manager

grassicpas.com

NEW JERSEY CPA | FALL 2021

NJCPA NEWS

TANYA E. DUNBAR, CPA

MELISSA O’SHEA, CPA

DIRECTOR AT EISNERAMPER LLP

Missy is a true woman to watch, not just because she is a leading female in her field and an important role model, but also because she facilitates training of younger members. She made partner at age 31, is a member of Sax’s Leadership Advisory and A&A Quality Control committees, is vice president of the Surety Association of New Jersey and was an NJCPA 30 Under 30 award winner.

STACY PALMER, CPA, MBA, MST

PARTNER AT SAX LLP

Tanya helped to re-established the robustness of the quality monitoring program at EisnerAmper, with a focus on both internal and external stakeholders including the Public Company Accounting Oversight Board, AICPA and the Department of Labor. She also serves on the Women of EisnerAmper Steering Committee and its Diversity & Inclusion Council and is co-chair of the Black Employee Network Employee Resource Group.

BARATZ

ASSOCIATES

TAX PRINCIPAL AT UNTRACHT EARLY LLC

Stacy is a leader to watch as well as a woman to watch. As a tax principal at Untracht Early, she focuses on corporate as well as individual tax compliance. She also has served as an adjunct accounting professor at Fairleigh Dickinson University. In 2019, she completed the Emerging Leaders program of Upstream Academy, which assists companies in meeting future business challenges.

BIDS

Congratulations! TO

This

O R

OWN

O ATION

AWARD

WINNER

Woman to Watch is...

Associate Partner Expert in the Tax Practice Mentor to New Employees Consultant to Small Businesses An Essential Part o Our Team

We work with leaders every day. baratzcpa.com 1 856.985.5688

FALL 2021 | NEW JERSEY CPA

Avani Bharucha3 CPA MBA

NJCPA NEWS

MELISSA SCIARRILLO, CPA

HAYLEY SHULMAN, CPA

CATHERINE SYSLO, CPA

AUDIT MANAGER AT ERNST & YOUNG LLP

SENIOR MANAGER AT WITHUMSMITH+BROWN

DIRECTOR OF QUALITY CONTROL AT COHNREZNICK LLP

Melissa is passionate about women having a seat at the table. She leads the EY Professional Women’s Network in New Jersey, having been its chair for the past 10 years and a member for 17. Melissa has also led the New Jersey chapter of EY’s Entrepreneurial Winning Women, a program aimed at helping women business owners, and she has mentored women through EY Mentor Connect.

Hayley was the sole recipient of Withum’s firm-wide 2020 Emerging Leader II Strength Award, which recognizes those who exhibit the characteristics of a future leader. As a subject matter expert in the healthcare and nonprofit tax spaces, her technical competence has earned her the utmost respect from her colleagues and clients alike. She also served as an NJCPA mentor and a scholarship interviewer.

Cathy truly makes a difference at the NJCPA and CohnReznick, where she specializes in auditing, including nonprofit and single audit engagements. She is a past leader of the NJCPA Nonprofit Interest Group and serves on the NJCPA Student Programs & Scholarship Committee and Accounting & Auditing Interest Group. Cathy’s dedication to the NJCPA runs deep, always looking to assist members with educational opportunities.

NEW JERSEY CPA | FALL 2021

NJCPA NEWS

Lotteries Help Offset Members’ Financial Costs Recognizing the importance of assisting students and young accounting professionals with the financial burden associated with becoming a CPA, the NJCPA is again offering two lotteries to members this fall. The CPA Exam Fee Lottery opens from Oct. 1 through Oct. 31 at njcpa.org/ cpaexamfeelottery, and the Student Loan Debt Lottery opens Nov. 1 through Nov. 30 at njcpa.org/studentloandebtlottery. CPA EXAM FEE LOTTERY The CPA Exam Fee Lottery offers NJCPA Student and CPA Candidate members a chance to receive $750 each to cover some of the fees associated with taking the CPA Exam. The lottery was created since the cost to take the Exam has skyrocketed in recent years, given the actual test, expected prep work, study guides and review courses that are typically necessary to pass. The 10 randomly selected winners, who must not be able to receive compensation for the CPA Exam from their employers, will be notified by Nov. 15. STUDENT LOAN DEBT LOTTERY Similarly, the costs involved in becoming a CPA have also far outpaced young professionals’ earnings in the accounting

field, often resulting in mountains of student loan debt for newly licensed CPAs. College graduates looking to earn the extra credits needed for CPA licensure in New Jersey often attend a graduate degree program or pursue other advanced credits. Ten Student Loan Debt Lottery winners will be selected at random to receive $1,200 toward their student loan debt and notified by Dec. 15. Winners must be either a CPA Candidate, Fellow or Associate member at the time of entry. Developed by the NJCPA Student Loan Debt Task Force, the Student Loan Debt Lottery was created to offset some of the financial burdens that may be limiting accounting professionals to stay in accounting. “There are many challenges are out there for students attempting to enter the field of accounting or young professionals seeking to attain their CPA license. It’s important to assist in any way we can. We are proud to offer lotteries that can lessen some of that financial hardship,” said Ralph Albert Thomas, CPA (DC), CGMA, CEO and executive director of the NJCPA.

ADVERTISERS INDEX 36 ALLOY SILVERSTEIN — alloysilverstein.com 6

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15 ADP — adp.com/switchtoadp 40 BARATZ & ASSOCIATES, P.A. — baratzcpa.com 27 BOWMAN & COMPANY LLP — bowman.cpa C3 CAMICO/GALLAGHER AFFINITY — njcpa.org/marketplace 42 CAPSTAN TAX STRATEGIES — capstantax.com 24 COST RECOVERY SOLUTIONS LLC — online.1stflip.com/dskd/3fmg/ 37 CULLARI CARRICO LLC — cullaricarrico.com 31 DELOITTE — deloitte.com 22 ELLAVOZ — ellavoz.com 39 GRASSI — grassicpas.com 35 MAZARS — mazars.us 19 PAYCHEX — paychex.com/ accounting-professionals 29 PKF O'CONNOR DAVIES — pkfod.com 33 SOBELCO — sobelcollc.com 32 UNTRACHT EARLY — untracht.com 30 WILKINGUTTENPLAN — wgcpas.com 41 WITHUM — withum.com

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CLASSIFIEDS

Retirement-minded CPAs seek experienced CPA for succession at our Morris County firm. We are peer reviewed with $900k gross revenue tax and accounting (mix of audit, reviews and compilations). Reply in confidence at njcpa.org/classifieds.

MERGERS/ACQUISITIONS

Accounting Practice Exchange, the online marketplace dedicated exclusively to the purchase, sale and merger of CPA and accounting practices across the USA. View opportunities here: www.accountingpracticeexchange.com. First Choice Business Brokers has the utmost experience, scale, integrity and commitment in successful sales and acquisitions of businesses. It's why Inc.com rates the company #3 on their list of "Top Boutique Brokers." I'm Gregory J. Carafello, principal broker, and for 39 years, I've owned and operated businesses in NY/NJ. Please contact me to discuss how I can assist you and your clients with business transition needs at 973-632-2192 or gcarafello@fcbb.com. Whitman Business Advisors www.whitmanbiz.com has been helping CPA firms with their M&A needs since 2008. We are working with several non-NJ headquartered firms that are looking for a foundational firm to expand their foot-print into NJ. If your revenues exceed $3MM annually then we should talk today! To confidentially discuss this opportunity, please email us at pw@whitmanbiz.com.

Matthews, Panariello P.C., a well established full service Bergen County firm located in Paramus, is looking Matthews, Panariello P.C., a well established full service Bergen County firm located in Paramus, is looking to acquire firms, sole practitioners, or accounts (audits, reviews, and tax preparation) ranging in size from $100,000 to $750,000. We are a peer reviewed firm with a strong track record of client satisfaction and retention. We have been successful in prior acquisitions; let's talk. Please visit our website at www.mpcpas.com. To confidentially discuss this opportunity, email Peter at pmanetta@mpcpas.com.

Morris County based practice looking for strategic alignment with area practice. Ideal for practitioner looking at succession planning, resource sharing or solo looking for potential partnership. Reply in confidence at njcpa.org/classifieds. Mercer County Audit practice for sale. Retirement-minded sole practitioner grosses $100,000 in audit, review, and compilation fees. Financing available. He will retain the tax and write up clients for a few more years. For more information, email buymymerceraudits@yahoo.com.

Retirement-minded CPA located in South Jersey looking for experienced CPA or CPA firm to acquire a well-established practice. $650K Gross in write up, tax, consulting. Reply in confidence at njcpa.org/classifieds. PROFESSIONAL SERVICES

Bergen County CPA firm $4-4.5 million top line ISO succession. Write-ups, taxes, financials. Reply in confidence at njcpa.org/classifieds. Seize a merger/acquisition opportunity with benefits for you. We are looking for firms ranging from $300,000 to $5,000,000 eager to combine forces as we continue to grow across northern NJ, Westchester and the Hudson Valley region. Goldstein Lieberman & Company is ideally situated to service all types of industries. Visit www.glcpas.com; email me, Phillip Goldstein, CPA, Managing Partner, philg@glcpas.com; or call me at 800-839-5767 to have a confidential conversation. New Jersey practices for sale: gross revenues shown: Bordentown, NJ CPA $220K; Gloucester Co. CPA $615K; Toms River metro area CPA $690K; southern Middlesex Co. CPA $1.075M. For more information, call 800-397-0249 or visit www.aps.net.

Quality Review for CPA firms: audit, review, compilation, employee benefit plans, Yellow Book, revenue recognition. Contact James M. Sausmer, CPA at 732-261-7710 or james.sausmer@gmail.com. Unlimited Risk Advisors LLC. We're CPAs that help other CPAs and their clients address their Health, Life, Disability, Long-Term Care, and Medicare Insurance needs! We provide individual policies and work with any size organization to develop and implement best-in-class group benefit plans. For additional information, please give us a call at 732-510-5670 or email us at info@unlimited-financial.com.

Russell P. Trocano, JD,LL. M, licensed by NY/NJ Bar Associations, provides taxpayer defense in NY/NJ, Banking, Corporate/Finance Law and Estate planning services. Contact Information: 201-445-0777, 60 S. Maple Street Ridgewood, NJ 07450, www.russell-trocano.com.

NEW JERSEY CPA | FALL 2021

MEMBER STORY

then her Doctor of Philosophy from Case Western Reserve University. Soon after, she jumped into teaching full-time. This took her from Cleveland to New Jersey, where she remains. According to Evelyn, the most rewarding thing about teaching is helping students, especially students of color, navigate and enter the accounting profession. “I think accounting is the best profession ever on the history of the planet,” she explains. “I really like teaching intermediate accounting because that’s the foundation. If you don’t get that, then you are lost. I love having the responsibility to make sure they get it.”

Breaking Down Barriers BY KATHLEEN HOFFELDER, NJCPA SENIOR CONTENT EDITOR

After growing up in the inner city of Cleveland, Dr. Evelyn McDowell, CPA, CGMA, has overcome many obstacles. Now an associate professor of accounting and department chair at Rider University, Evelyn has lessons to share both inside and outside the classroom. THE EARLY DAYS As the second oldest of eight children, she took it upon herself to make sure her siblings were entertained — the only way an accountant knows how. “All my life I’ve been an accountant. I used to make paper money and hide it all over the house for my younger sisters and brothers to find, then I’d count it. Whoever had the highest amount would be the winner,” says Evelyn. “When I went to grocery stores, I wanted to work at the cash register. I loved that whole thing. I was mesmerized. I loved calculators. I loved the technology,” she adds.

FALL 2021 | NEW JERSEY CPA

While there was no mentor in Evelyn’s family, she did have an accounting influence at her high school when she took an accounting course. “I didn’t know anyone that had an accounting degree,” she explained, but she liked the work involved. It was also in high school where she became one of the first members of INROADS, a nonprofit organization that helps African Americans become acclimated to the business world. There she learned what it takes to make it in business — which paid off in spades. She eventually worked in public accounting, for the city of Cleveland, in internal audit for the Federal Reserve Bank of Cleveland, internal audit for another bank and for a hospital before forming her own CPA firm. Evelyn soon discovered she had a knack for explaining and presenting accounting to her clients and others — in short, teaching. So, she went back to school and got her Master of Accountancy and

COMMEMORATING THE MIDDLE PASSAGE Evelyn also realized American slavery was something everyone, especially the youth, needed to be educated on. “Growing up in the United States of America, I could see that our country has a problem with owning up to the problems of the past and its relationship to the present. We all grow up not knowing much about the bad parts. I grew up not knowing about the magnitude and extreme barbarity of American chattel slavery and not knowing how deeply my family was affected by it,” she explains. “But, as I researched my family’s history, I could see the history from my great grandparents’ putting an ‘X’ as their signature since they couldn’t read and write, and a will with my second great grandmother (who was eight years old) being inventoried as slave property, just above the hogs and furniture.” After researching her own history, she realized that other people could do the same and founded a hereditary society for descendants of those who were enslaved, called Sons & Daughters of the United States Middle Passage. The other part of the mission, according to Evelyn, who is the president of the organization, is to commemorate their lives. “Once we know their name, we remember who they are and what they went through and the last part is to educate their children and others about that history,” she says. As a new grandmother herself, Evelyn realizes how precious one’s history is.

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New Jersey CPA - Fall 2021

Articles inside

Breaking Down Barriers

4 Useful Excel Macros

Cost Segregation in a Post-COVID-19 World

7 Tax-Saving Opportunities for Real Estate Investors

Leveraging Data Analytics for Fraud Prevention and Detection

The Power of Successful Negotiation

Understand Top Business Trends to Enhance Consultations with Clients

The Office — Will it Make a Comeback?

The Benefits of a Fractional CFO

The Road to 150: Four Options for Maximizing the Final 30 Credits

5 Risk Assessment Challenges for Audits

Celebrating Entrepreneurship: Innovating Beyond the Pandemic

Gubernatorial Candidates - Leading the Charge

Making Our Voices Heard in Trenton

Domestic Manufacturing in a Pandemic All Hustle and Grit

Pivoting Through the Pandemic The Way Forward