New Jersey CPA - Fall 2022 by New Jersey Society of CPAs

KEEPINGPROCESSESAUDIT AND STANDARDSINCHECK 5 STEPS TO PROTECT YOUR ORGANIZATION FROM A CATASTROPHICCYBERATTACK CPAs LOOK TO CPE FOR Inspiration FALL 2022

RALPH ALBERT THOMAS, CPA (DC), CGMA Chief Executive Officer & Executive rthomas@njcpa.orgDirector THERESA HINTON Chief Operating thinton@njcpa.orgOfficer DON MEYER, CAE Chief Marketing dmeyer@njcpa.orgOfficer RACHAEL BELL Managing rbell@njcpa.orgEditor KATHLEEN HOFFELDER Senior Content khoffelder@njcpa.orgEditor DIANE ESPIRITU Senior Graphic despiritu@njcpa.orgDesigner THE NEW JERSEY SOCIETY OF CERTIFIED ACCOUNTANTSPUBLIC 105 EISENHOWER PARKWAY SUITE 300, ROSELAND NJ 07068 973-226-4494 | READ#NJCPAMAGNJCPA.ORG NEW JERSEY CPA ONLINE AT NEWJERSEYCPANJCPA.ORG/ TO ADVERTISE OR PROVIDE SPONSORED CONTENT IN NEW JERSEY CPA Visit njcpa.org/advertising or contact Eileen Proven at oreproven@njcpa.org862-702-5640 CLOSE2 UP Advocacy Ramps Up AUDITINGACCOUNTING,10&ATTEST Using Technology to Improve Audit Outcomes BECOMING11 A CPA 3 Ways to Evolve Accounting Education MANAGEMENTBUSINESS12 Moving Forward By Going Backward SPONSORED CONTENT 7 Ways HR Leaders Are Helping Their Companies Thrive FIRM14 MANAGEMENT How to Create a Year-End Marketing Plan INDUSTRIES15 6 Ways CPAs Can Strengthen the Financial Outlook for Nonprofits LITIGATION16 SERVICES & VALUATIONBUSINESS Risks and Opportunities for the CPA in Client Bankruptcies DEVELOPMENTPROFESSIONAL17 Connections Drive Success for CPAs in Business & VirtualIndustryversus In-Person CPE: Pros and Cons TAX20 Can’t Move? Move Your Assets. The OftenOverlooked Tax Benefits of BasisDAPTsReporting of the Sale of Business Assets TECHNOLOGY22 4 Technology Trends to Enhance Your Business NJCPA23 NEWS y 2022 Ovation Awards y Member Categories Bylaws Vote on Tap y In JackMemoriam:Dailey y In HowardMemoriam:Bookbinder y Lotteries Help with CPA Costs MEMBER40CLASSIFIEDS39PROFILE Alexandra Guccione, CPA, MBA contents THE MAGAZINE OF THE NEW JERSEY SOCIETY OF CERTIFIED PUBLICFALLACCOUNTANTS2022 4 Keeping Audit Processes and Standards in Check Auditing has come of age. The pandemic created both challenges and opportunities for auditors, while new and improved standards should help modernize and enhance transparency in financial reporting. 6 5 Steps to Protect Your Organization from a Catastrophic Cyber Attack As organizations up their reliance on digital technologies, they become more vulnerable to cyber attacks. Realizing that cyber risk can never truly be eliminated, savvy organizations are adopting new methods of understanding, measuring and managing cyber risk on a continuous basis. 8 CPAs Look to CPE for Inspiration In the wake of COVID-19, CPAs are seeking out new ways to stay competitive, improve leadership training and upend skillsets. Virtual and in-person CPE classes are in demand on everything from new quality management standards and leadership skills to environmental, social and governance (ESG) reporting.

The NJCPA continues to be recognized as a key player in the state capital, as exemplified by NJCPA CEO and Executive Director Ralph Albert Thomas, CPA (DC), CGMA. He was recently appointed to two prestigious public policy positions and continues to advocate for issues important to CPAs and the businesses they serve.

The commission consists of 10 members: the State Treasurer, three members of the executive branch designated by the Governor, two public members appointed by the Senate President, two public members appointed by the Speaker of the General Assembly and two public members appointed by the Governor with the consent of the Senate.

The Center’s first project was the creation of a Multi-Year Budget Workgroup. Ralph sits on the workgroup’s Tax and Revenue Projection Committee. The workgroup released its first report in June, New Jersey’s Fiscal Future: Comparing Multi-Year Revenue Forecasts With Current Services Budget Pro jections (chss.rowan.edu/centers/sweeney_ center/), providing analysis of state budget revenue and expenditure projections over the next five years. The report concluded that although New Jersey was expecting a $10.5 billion surplus for fiscal year 2022, the state is most likely facing a fiscal cliff in the years ahead, based on multi-year revenue

Advocacy Ramps Up

In June, Ralph was appointed by Assembly Speaker Craig Coughlin to the state’s Sales and Use Tax Commission. The commission reviews all proposed legislation that will either expand or reduce the sales and use tax base. They review such legislation to analyze its fiscal impact and provide com ments or recommendations for changes.

CLOSE UP

BY JEFFREY KASZERMAN, NJCPA GOVERNMENT RELATIONS VICE PRESIDENT forecasts and a current services budget projection developed by the workgroup. The workgroup’s fiscal policy experts and economists agreed that there is an 80-percent probability that revenue collections from FY24 to FY27 will fall $10.5 billion to $20.5 billion short of the projected expen ditures needed in those four budget years to continue current services and state aid with normal inflation and to make up for budget holes left when federal COVID aid is exhausted.

ONGOING ADVOCACY

SALES AND USE TAX COMMISSION

In March, Ralph was appointed to a new think tank created by former Senate President Steve Sweeney, The Steve Sweeney Center for Public Policy at Rowan University. It was created to fill the need for an inde pendent, bipartisan, public policy center to conduct research and develop pragmatic solutions to complex policy issues based on data-driven analysis and rigorous academic research. It convenes working groups that bring together policy experts, stakeholders and advocates to reach consensus.

READ MORE LEGISLATIVE ACTION CENTER njcpa.org/advocacy 2 FALL 2022 | NEW JERSEY CPA

POSTMASTER: Send address changes to New Jersey CPA, 105 Eisenhower Parkway, Suite 300, Roseland, NJ The07068-1640.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.

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. 92 Copyright © 2022 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.

During tax season, Ralph participated in press conferences held by Senator Robert Menendez and Congressman Josh Gottheimer urging the IRS to speed up its processing of tax returns. He also participated in a press conference held by Assembly Speaker Coughlin announcing a new student loan program signed by theRalphGovernor.andothers at the NJCPA have also been busy this year educating members on the importance of contributing to the non-partisan New Jersey CPA Political Action Committee (PAC). The PAC supports candidates who protect and promote the CPA profession and is the only organization in New Jersey dedicated solely to fighting for CPAs in the legisla tive arena. All funding comes from CPAs making voluntary contributions; none of its funding comes from the NJCPA. Our profession badly trails other groups in PAC fundraising. For example, 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. Our PAC is at a severe disadvantage when other groups, which sometimes have competing political interests to CPAs, have far greater PAC participation from their members. You can contribute to the PAC at njcpa.org/pac.

PUBLIC POLICY THINK TANK

3NEW JERSEY CPA | FALL 2022 Request Your Demo at MoneySavecorvee.com/NJCPAClientsonTaxes With Corvee Tax Planning Software Inc. 5000 is a registered trademark of Mansueto Ventures LLC

PANDEMIC’S TOLL With many businesses wanting or needing to do almost everything remotely, setting up virtual auditing capabilities and remote working conditions for staff during the pandemic was a must for auditors looking to not only retain clients but staff as well. “Many organizations have afforded their employees the opportunity to work remotely,” explained Brad Muniz, CPA, CGMA, member of the firm and director of accounting and auditing at SobelCo. But while working remotely has greatly enhanced employee satisfaction, he said it has also, “potentially opened the door to weakness in the control environment.” He added that particularly where those orga nizations had not adopted a Committee of Sponsoring Organizations of the Treadway Commission (COSO) control environment, they “have relied upon controls that could only be performed in person.”

the Firm and

CPA Partner Citrin Cooperman SALVATORE

CGMA Member

Salvatore Collemi, CPA, managing member of Collemi Consulting and Advisory Services, LLC, agreed, noting the pandemic has left many businesses with a shortage of key staff. “What’s still posing a problem is that not everybody’s back to full operation. Many businesses are missing key personnel — whether they’re not onsite or they have been let go.”

BRAD E. MUNIZ, CPA, of Director

MODERNIZING RISK ASSESSMENT

SENIOR

Auditors, he said, have identified that organizations have not updated/modified their controls to properly mitigate the weaknesses in the environment. “Due to many distractions, organizations have not performed their own risk assessment of their control environment,” he added. Internal controls are precisely what Laura Crowley, CPA, a partner at Citrin Cooperman, also said needs to be watched in a post-COVID environment. “The biggest challenge I have observed post-COVID is that, with the talent shortage, some clients do not have the resources they need to maintain a robust system of internal control over financial reporting,” she said. “My observation is that systems of internal control have been adapted to meet the current need; some individuals involved in the internal control process may be lifting a heavier workload than usual. Auditors need to remain skeptical in assessing the control environment and be alert for signs of weakness in the control environment.”

EDITOR KEEPING INANDPROCESSESAUDITSTANDARDSCHECK CONTRIBUTORS (in order of appearance)

of Accounting and Auditing SobelCo

By KATHLEEN HOFFELDER NJCPA CONTENT

In continuing to improve audit quality, the American Institute of CPAs (AICPA) Auditing Standards Board (ASB) and Even before the COVID-19 pandemic, audit quality was improving for the better, and it will continue to evolve. While the pandemic showed auditors and companies alike that virtual audits are a viable option, aligning those new operating practices with a thorough understanding of new auditing standards will help ensure accuracy in the audit process going forward.

LAURA M. CROWLEY, A.

COLLEMI, CPA Managing Member Collemi Consulting & Advisory Services, LLC 4 FALL 2022 | NEW JERSEY CPA

With companies’ staff taking on multiple roles, this can lead to an increase in fraud risk. According to Collemi, “A lot of busi nesses are back up and running but they are not 100 percent. They don’t have proper segregation of duties.” He added, “They are having internal control challenges. Auditors and accountants have to be careful not to downplay that risk in this environment.”

Other standards changes have been necessary to increase transparency.

ADOPTION IS KEY Difficulties remain, however, in getting clients and organizations to thoroughly adopt these and other standards. “Nearly 20 years ago, the AICPA issued a suite of risk assessment standards. Since then, the results of peer reviews continue to indicate that firms struggle with properly documenting and understanding the environment, assessing risk of material misstatement and aligning audit procedures to those assessed risks,” explained Muniz.

For example, SAS 134, Auditor Reporting and Amendments, including Amendments Addressing Disclosures in the Audit of Financial Statements, required a new audit report (including layout) and revised com munication with governance. The standard, which went into effect Dec. 15, 2021, also changed the audit report for employee benefit audits and eliminated the “limited scope” concept, noted Muniz. “Too often, peer reviews have identified firms not properly adopting recently effective guidance. Findings like this could result in a peer review rating of pass with deficiency or a fail, in addition to eroding the confidence of the users of the financial statements.”

Crowley noted that SAS 145 does not represent a significant change in approach, but it clarifies certain aspects of the risk assessment process that auditors follow.

LEADERSHIP’S INFLUENCE

Added Muniz, “While we have been conditioned to be told what we are doing wrong in audits, it is beneficial that the AICPA has altered the Quality Control Standards communication. This will better direct practitioners to focus on the design of their system from the outset.”

its Accounting and Review Services Committee teamed up in June to develop four new quality management standards that represent a modern approach to risk assessment and audit quality. The new standards, which are effective Dec. 15, 2025, are scalable, reflect changes in technology and incorporate the increased use of external service providers. The standards, according to the AICPA, “clarify and improve existing quality management processes.” They include: y A new risk-based approach focused on quality management tailored to the firm’s circum-stances y Revised components of the system of quality management, including information and communication y More robust leadership and governance requirements y An enhanced monitoring and remediation process y Requirements for networks and service providers

Results from a recent AICPA survey on audit quality reiterated that organizations need to improve documentation but also noted the need to incorporate a top-down approach. The survey of more than 1,000 CPA firms reported that the following factors are most important for a highquality audit: y

Leadership — ultimate responsibility and accountability for the system of quality management resides with the firm’s managing partner/CEO y Acceptance and continuance — the firm performs a risk assessment on all engagements y Human resources — the firm has established reasonable deadlines y Engagement performance — the engagement partners or other senior members of the engagement team review significant working papers y Monitoring — the firm monitors CPE for all professional staff While Crowley was not surprised by the AICPA survey findings, she explained, “Firms recognized that a robust system of quality control leads to better-quality audits and also improves efficiency.

He added that, as part of the audit process, companies are required to consider and report, if applicable, significant deficiencies or material weaknesses in internal controls. However, companies have experienced “significant pushback from management when a deficiency or weak ness is identified and reported,” he said.

“While enhancing and clarifying standards so that there is more consistency and a deeper understanding by auditors of the objectives of the standards, standard setters should remain cognizant of the need to allow room for auditor judgement in these areas,” she added.

Recent ASB standards were designed to assist with assessing control risk and make the standards more adaptable to modern auditing practices. For example, the ASB’s Statement on Auditing Standards (SAS) No. 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement, goes into effect for audits of financial statements on or after Dec. 15, 2023. Included in this standard is a revision of the definition of significant risk; a new requirement to separately assess inherent risk and control risk; guidance on the use of information technology and general IT controls; guidance on main taining professional skepticism; and a new “stand-back” requirement regarding the completeness of disclosures.

Engagements where quality is built in from upfront vetting of potential issues to assigning an appropriately experienced team run smoother from the start and reduce issues later in the engagement.”

READ MORE AUDIT QUALITY KNOWLEDGE HUB njcpa.org/hub/auditquality LEARN MORE Sept. 20, Live Webcast FOCUS ON ENGAGEMENT QUALITY: HOW TO AVOID DEFICIENCIES IN PEER REVIEWS Oct. 20, Live Webcast PERFORMING AN EFFECTIVE AUDIT RISK ASSESSMENT IN THE COVID-19 ENVIRONMENT Oct. 21, Live Webcast UPDATE ON AICPA’S NEW ETHICS AND QUALITY CONTROL STANDARDS njcpa.org/events 5NEW JERSEY CPA | FALL 2022

“Too often, management would rather receive a ‘good report card’ than under stand and correct the potential issues.”

The harsh reality is that the financial sector is the biggest target for cyber attacks because these firms hold large volumes of personal and financial data. They are a single access point to data from multiple organizations, which is incredibly valuable to cyber Thesecriminals.attackscome in many different forms. The top three threats a financial firm should worry about are ransomware, phishing attacks and loss of sensitive data. The ransomware business alone is a multi-billion-dollar business that is built on holding data from networks for ransom. All these threats open the door to impeded workflow, liability and loss of clients.

UNDERSTAND THE MYTHS Many myths surround cybersecurity. Consider these: y “I’m too small. Why would anyone want to target me?” Most ransomware and other attacks are indiscriminate. They are carried out at volume and are completely scalable. The attackers blast hundreds of thousands of emails. They think in terms of conversion rate. They don’t know, nor do they care, who it is.

ORGANIZATION

6 FALL 2022 | NEW JERSEY CPA

“Antivirus is good enough.” The cold, hard truth is that antivirus can only react. It works by checking files against a list of known viruses and comparing the two. If a virus is new and yet unknown, there is nothing to compare it to, and the user will be infected.

y “We’re covered because we have cybersecurity insurance.” Like all other insurance, this is the last thing you want to rely on to make your company whole. After a breach, insurance is not going to make your reputation whole. In fact, 60 percent of small businesses that are victims of a cyber attack go out of business within six months. All businesses are at risk for a cyber attack. And in these uncertain economic times, it is expected that the risk will increase. The past has shown a correlation between recession and cybercrime. During and before the 2008-09 Great Recession, fraud on the internet increased by 33 percent. Today’s increased digitization makes data more vulnerable than ever. By TOM KIRKHAM YOUR FROM A CATASTROPHIC CYBER ATTACK

“I can’t afford enterprise-grade security.” Cybersecurity doesn’t have to be expensive. An organization can invest only $20-30 a month per device and get some of the same technical controls, administrative procedures or administrative controls, and other tactics, techniques and procedures that the Department of Defense and Fortune 10 companies use. Considering that the average ransomware payout is more than $100,000, and victims who paid the criminals only recovered 65 percent of their data, that is a small investment.

IRONTECH SECURITY 5 STEPS TO PROTECT

According to a report from Boston Consulting Group, cyber attacks have hit financial services firms 300 times more than other companies. Forbes reveals that 25 percent of all malware attacks are targeted at financial and accounting firms, with cyber attacks costing $18 million per firm compared to $12 million per incident in other industries. Fortunately, by being vigilant about protection, 97 percent of breaches can be prevented.

5. Create and foster a security-first environment from the top of the organization down. Employees are your first line of defense against a breach. Everyone who has access to any kind of computer or device on a network must have security awareness training continuously. No one is exempt.

y “Cybersecurity is an IT issue.” It’s not. It’s a security issue. IT and information security are two different disciplines that require two different skillsets. By understanding that these are myths and the cyber attack risk is real, companies can adequately protect themselves and clients from harm.

1. Realize that cybersecurity is not an IT issue. There is a difference between information security and IT. IT specialists ensure that networks are safe, secure and running smoothly. A skilled team of information security specialists live and breathe cybersecurity 24/7. They keep up with the changing cyber threats. They reveal current risks and vulnerabilities and develop a plan to put security controls in place. And they orchestrate the controls, tools, plans, policies and procedures.

TYING IT ALL TOGETHER Cyber risk is constantly evolving. As the dependence on digital technologies in the business world increases, so does the scope of cyber risk. Cyber threat actors are active adversaries, constantly adapting their tactics, techniques and procedures to cause Cyberharm.riskcan never be eliminated, so organizations need to adopt new methods of understanding, measuring and managing cyber risk on a continuous basis. A combination of cyber insurance and best-in-class cybersecurity practices can reduce this risk and provide some peace of mind for leaders.

Tom Kirkham is the founder and CEO of Kirkham.IT and IronTech Security. He is the author of the book, The Cyber Pandemic Survival Guide — Protecting Yourself from the Coming Worldwide Cyber War, and can be reached at sales@irontechsecurity.com

5 STEPS TO CYBERSECURITY

A layered security approach with multiple best-of-breed tools and constant vigilance is the most effective line of defense. By taking the following steps, companies can put in place a comprehensive, ongoing cybersecurity program:

2. Don't rely on antivirus. In today’s cyber environment, antivirus software is ineffective. Antivirus looks for mali cious code; malicious logs must already be known, so they typically are three to six months old. Instead, enable an endpoint detection and response (EDR) tool and eliminate antivirus. EDR tools monitor, analyze and find threats for malicious activity and anomalies in real time.

4. Multifactor authentication (MFA) is necessary. MFA is an authentication method that requires the user to provide two or more verification factors to gain access to a resource such as an application, online account or VPN. Rather than just asking for a username and password, MFA requires one or more additional verification factors, which decreases the likelihood of a successful cyberattack. MFA should be required for remote access to a desktop, server or any data. It is also good practice to use MFA wherever it is available, including bank accounts, social media and e-commerce sites.

READ MORE CYBERSECURITY KNOWLEDGE HUB njcpa.org/hub/cybersecurity LEARN MORE Oct. 3, Live Webcast (replay on Oct. 12) NEXT-LEVEL PROTECTIONSECURITY Jan. 5, Cinnaminson SOUTHWEST JERSEY CHAPTER — CYBERSECURITY njcpa.org/events 7NEW JERSEY CPA | FALL 2022

3. Learn the importance of encryption. Disk encryption is built into most mobile devices and almost all iPads and phones. This technology protects information by changing it to unreadable code and should be enabled for all devices.

John H. Higgins, CPA.CITP

Renee Rampulla, CPA, CGMA

We have experienced a number of interesting changes in CPA learning patterns (a.k.a. CPE) over the past year, partially as a result of the pandemic environment and partially due to the rapid evolution of technology impacting CPAs and other financial profes sionals. Regarding delivery formats, there has been a substantial transformation to favoring online or virtual learning programs over in-person learning. Obviously, this trend was originally fueled by the pandemic and related lockdowns. However, it also introduced many CPAs to the convenience of online learning, so we believe most of the transformation will stick. Now that many CPA associations are beginning to offer in-person learning again, there is clearly a segment of the profession that prefers in-person learning and are excited to be back networking and learning with their peers. Many associations are offering a hybrid format of online virtual attendance and in-person for selected events, which optimizes the opportunities to meet their members’ needs. Related to this trend, we are experiencing a greater number of registrations coming in closer to the event date, even the day of, since online events don’t require local or long-distance travel, as well as the fact that there is an abundance of online learning offerings to choose from. This has also increased interest in on-demand/self-study courses that can be taken 24x7. The last point about this is a substantial trend towards shorter programs of one to two CPE credits. People are fatigued with long days of on-screen learning.

What kind of learning/programs are in high demand among CPAs looking to fulfill CPE requirements?

The CPA profession has always been very forward thinking. As the physical, virtual and technological environment of our clients and employers change, the CPA profession continues to evolve in order to meet the demands brought about by these changes. There are several emerging topics that come to mind. For example, there is an increased need to understand the digital asset ecosystem. How are digital assets accounted for, valued and audited? What types of controls are needed and are they regulated? Another emerging topic is envi ronmental, social and governance (ESG). There are increased pressures in the United States and the global business environment to report ESG data. ESG presents a wonderful opportunity for CPAs who have always been viewed as the trusted professional.

JOHN H. CPA.CITPHIGGINS, Chief Partnership Officer CPA Crossings, LLC ANGELAMBARUSSO, Director of Learning New Jersey Society of CPAs

CPE course offerings have evolved over the course of the pandemic. New technological advantages and niche training needs are compelling CPAs to delve into new knowledge areas, find better ways to obtain leads, empower staff and change outdated modes of operating forever. We asked several CPE providers what content trends they’re seeing and what methods of learning CPAs are gravitating towards today.

CPA s LOOK TO CPE INSPIRATIONFOR 8 FALL 2022 | NEW JERSEY CPA

CONTRIBUTORS (in order of appearance)

Angela Russo, MBA Our Virtual CPE Pass was extremely successful during the pandemic as CPAs looked for convenient and affordable ways to meet their annual CPE requirements. This trend continues today as we are still seeing demand for virtual programming. On-demand learning, in particular, draws a lot of interest since CPAs can obtain CPE when and where they want it. The NJCPA is adding on-demand programs and subscriptions to address our members’ needs. We’ve partnered with many vendors that provide high-quality and relevant content, and we also create our own content. Micro-certifications in niche areas is trending and will be offered to members. Are CPAs looking to solidify particular niche areas of expertise?

RAMPULLA,RENEECPA,CGMA Owner RampullaServices,AdvisoryLLC

DONNY CPA.CITP,SHIMAMOTO,C.CGMA

CEO and Founder IntrapriseTechKnowlogiesLLC DAISLEY,RICHARDCPA Vice President of Accounting and Auditing Curriculum Surgent CPE

John H. Higgins, CPA.CITP

Are CPAs looking to augment certain skillsets over others as they prepare for the future?

9NEW JERSEY CPA | FALL 2022

Donny C. Shimamoto, CPA.CITP, CGMA I’m seeing more requests than ever this year for training related to digital transfor mation — not how to actually do it from a technology perspective, but how accountants can help their firms or companies balance risk and innovation. Cybersecurity remains a highly requested session, too, especially as it relates to risk assessment, incident response and business continuity — all key areas for CPAs to collaborate with IT to ensure the business impacts of cybersecurity are considered and addressed.

Renee Rampulla, CPA, CGMA

Angela Russo, MBA

Specific niche areas that have grown in interest include data analytics and dashboard reporting, cryptocurrency and blockchain technology, CPA practice technology and CAAS (client accounting and advisory services) business models and best practices.

While critical to performing work effectively and efficiently, these skills also greatly enhance employee retention andLastly,commitment.firmleaders are focusing their training on creating a challenging yet engaging firm culture that creates ample opportunity for all employees to thrive. While money will always matter, training that focuses on identifying what motivates employees and how best to develop them and recognize their contributions creates a competitive advantage, especially in a period of tight resources. While there will always be the need for formal training and on-the-job technical development for CPAs of all levels of experience, firms that are proactive in creating professionals with well-rounded skillsets will have a significant competitive advantage.

It is not coincidental that the CPA Exam is changing to recognize the competencies and skills needed as the profession moves forward into the future. We are certainly in a “CPA Evolution.”

CPAs are learning how to leverage their expertise and skill sets to ensure the reliability of ESG reporting. Lastly, as the reliance on the use of service organizations (i.e., outsourcing payroll processing, cloud computing) continues to increase, the need to understand the effectiveness of the service organization’s internal controls and safeguards also increases. Knowing what a service organization controls (SOC) report is, when it is needed and what type of report is needed becomes increasingly important. There will always be a demand for conventional accounting and auditing courses, but as the business environment evolves, continuing education for CPAs will need to expand to meet emerging topics and opportunities.

When I talk about digital transformation, I explain the business analyst and data scientist skillsets: analyzing processes and data structures and creating data models that represent business operations. These tie back to the accounting information systems course that many of us took when we originally did our accounting degrees and is critical as CPAs seek to go beyond financial data into operations — and also as they try to utilize more data analytics and visualizations.

Richard Daisley, CPA While technical expertise is fundamental to our profession, CPAs that are managing the significant disruption caused by the COVID-19 pandemic are forging ahead with training in the areas of interpersonal skills, coaching and leadership, and enhancing corporate culture and work environment inclusiveness to provide themselves with a competitive advantage.

LEARN MORE Search all NJCPA CPE njcpa.org/eventsPrograms

Proactive CPAs are engaging in training programs that emphasize improving communication skills, especially those skills utilized in a virtual work environment. This includes developing skills such as effective listening and those that identify barriers and solutions to effective virtual communication.Further,withless one-on-one engage ment, firms are also emphasizing training that develops coaching skills, such as problem identification and solving skills, criticalthinking and effective employee motivation.

Angela Russo, MBA Relevant CPE hot topics include Schedules K-2/K-3; cannabis; New Jersey PassThrough Business Alternative Income Tax (BAIT); environmental, social and governance (ESG); and data analytics.

We will continue to offer many opportu nities for CPAs to prepare for the future in technology, communication, supervision of staff and, most importantly, leadership skills in the new work environment.

Donny C. Shimamoto, CPA.CITP, CGMA

To varying degrees, all professionals have struggled with the COVID-19-induced changed work environment. CPAs need to adapt to this new environment in which face-to-face interaction is reduced and opportunities for real-time coaching and on-the-job development are curtailed.

BY DONALD P. KAISER, CPA, McCARTHY & COMPANY

Using Technology to Improve Audit Outcomes

CLOUD-BASED COMPUTING

Auditors can use cognitive technology to analyze structured and unstructured data in ways that were not possible before.

Cognitive technology — also known as artificial intelligence (AI) — can assess and quickly analyze vast amounts of data in a way that is impossible even with a team of auditors. Cognitive technology involves algorithms that enable software to absorb information, reason and think in ways similar to humans. It also encompasses a process known as machine learning, where computers can course correct and try new strategies as they encounter obstacles or unknowns in their work.

The COVID-19 pandemic showed how important technology is to the audit function — specifically, the need to use innovative technology or computer-aided audit tools (CAATs) to help improve the efficiency and quality of external audits in a virtual

While Excel is still widely used by accountants, systems like Sage Intact, DataRails and Case Idea are now available to help auditors improve efficiencies andHavingoutcomes.access to more meaningful data implies that clients will expect more insights from the audit. Auditors will need to provide clients with information on what happened in the past, as well as what can be expected in the future. Although the information is abundant online, auditors must research and test third-party data to ensure it is reliable, relevant, objective, accurate and complies with auditing standards. It is therefore advisable to use only vetted, trusted and respected sources of information.

Donald Kaiser, CPA, is a partner with McCarthy & Company, PC. He is a member of the NJCPA and can be reached at don.kaiser@mccarthy.cpa

READ MORE ACCOUNTING & AUDITING KNOWLEDGE HUB njcpa.org/hub/accounting LEARN MORE Sept. 22, Paramus ACCOUNTING & AUDITING UPDATE Sept. 23, East Hanover ACCOUNTING & AUDITING UPDATE Oct. 18, Live Webcast ACCOUNTING AND AUDITING CONFERENCE Oct. 18, East Brunswick ACCOUNTING & AUDITING UPDATE njcpa.org/events 10 FALL 2022 | NEW JERSEY CPA10

SMART DIGITAL HUBS Smart digital hubs serve as “smart platforms,” allowing auditors to work remotely and in real-time, utilizing data and analytics, automation and visualization. Examples include virtual collaboration tools, chatbots, e-commerce apps, virtual reality apps, conversational AI, omnichannel marketing and self-service portals.

ACCOUNTING, AUDITING & ATTEST

Structured data is highly organized and formatted to be easily searchable in relational databases. Unstructured data has no predefined format or organization, making it much more difficult to collect, process and analyze.

ARTIFICIAL INTELLIGENCE

PREDICTIVE ANALYTICS

Apps like Microsoft Azure, Google Cloud and Amazon Web Services (AWS) enable auditors to perform testing tasks and auditing from any location. Auditors can also securely deliver information, reports and working papers via the cloud.

Auditorsenvironment.traditionally had to spend time at a client’s facility to test sample transactions and internal controls manually. Now, test checking can be replaced by 100-percent verifications since computers can quickly analyze more data than humans. Depending on the client and the firm’s internal systems, it may also be possible to audit in real-time, eliminating the need to rely on data that could be outdated. Auditors can now use technology to remotely identify fraud and operational business risks, generate financial reports and tailor their approach to deliver better results. In addition, data analytics can allow auditors to better understand the accuracy of the reported information. As IT appli cations become even more sophisticated, auditors can use a combination of client, predictive, industry and market data to make more meaningful connections, identify patterns and form correlations between the data to identify issues and findEvensolutions.withall the technological advance ments available today, auditors will still need to use their professional judgment to determine if a client’s financials comply with Generally Accepted Accounting Principles (GAAP) and other audit standards.

There are many technology advancements that auditors can use to help with data analytics, analysis, data mining and other audit functions.

Predictive analytics uses advanced data analysis to make predictions based on probabilities about what might happen in the future. Auditors can use digital tools to extract client information and use predictive analytics to identify patterns and possible outcomes and trends. This type of analysis can help auditors gain deeper insight into a client’s business and financial risks by comparing the data with industry and market benchmarks.

2. INTEGRATE TECHNOLOGY

Brigid D’Souza, CPA, MBA, is an assistant professor and CPA advisor at the Frank J. Guarini School of Business at Saint Peter’s University. She can be reached at bdsouza@saintpeters.edu READ MORE CPA EVOLUTION evolutionofcpa.org CPA EVOLUTION MODEL CURRICULUM modelCPAcurriculumthiswaytocpa.com/program/

3 Ways to Evolve Accounting Education

The window on the current CPA Exam format is quickly closing, making the new CPA Evolution licensure format an imperative classroom focus. Accounting professors serve as tip-of-the-spear resources to help students understand the new format and should be adjusting both curriculum and classroom learning approaches. CPA Evolution maps to current market trends, reflecting increased demand for CPAs who can double as technologists and think more critically within problem-solving, client service environments. At Saint Peter’s University, where I currently teach undergraduate students and also serve as the departmental CPA advisor, we have been adjusting our focus since last fall and will continue to do so as more resources emerge from the American Institute of CPAs (AICPA), National Association of State Boards of Accountancy (NASBA) andHeremore.are three ways that educators can better prepare students for CPA Evolution:

Educators should leverage guest speakers, particularly recent graduates who are working at the staff level. Current accounting students are learning during an exciting and rapidly changing time in the profession. Bringing in guest speakers can help class rooms remain connected to the profession. Once again, this is time that professors must surrender, but benefits abound. Last semester, I invited two former students back to speak. Their insights were imme diate, concrete and relatable to students in the classroom and generated deeper discussions around concerns that many students felt about entering the workforce, approaching CPA Exam prep and more. Adjusting curriculum and classroom learning towards CPA Evolution and the 2024 Exam changes is an imperative for the college classroom. Professors and program leaders must help their students enter the 2024 paradigm prepared to not just pass the CPA Exam but thrive in a new and exciting career.

3. BRING IN GUEST SPEAKERS

BECOMING A CPA

BY BRIGID D’SOUZA, CPA, MBA, SAINT PETER’S UNIVERSITY

11NEW JERSEY CPA | FALL 2022

1. UPDATE STUDENT ADVISING LANGUAGE Educators should map student advising language to the new CPA Evolution Model Curriculum. The new model uses a “core + discipline” approach; this language frames what students need to already be doing: mastering the core accounting curriculum but also thinking of a “discipline” focus for the job market. The core represents the spine of the typical accounting major requirements. The discipline represents a direction that a student can specialize in for purposes of taking the new CPA Exam. The three disciplines are: y Business Analysis and Reporting, including research, government and nonprofit accounting and advanced accounting topics y Information Systems and Controls, including risk assessment, tests of internal controls and system and orga nization controls (SOC) engagements y Tax Compliance and Planning, including individual and corporate Thetaxationdisciplines can be framed as a focus for electives, potential minors and potential graduate-level courses but also as a pathway into the workforce.

Technology, data analysis and data visualization should be integrated into every course, including fundamentals of accounting. Accounting textbooks have been integrating data-intensive skills for years; more is likely to come as they adapt to the new licensure requirements. Students should also be increasingly pushed into technologies like spreadsheets, data visualization software and coding. Educators can do this as early as the fundamentals in accounting courses. For example, I asked my students to create a balance sheet from scratch within a spreadsheet, using ledger data pulled from a textbook exercise. This was a simple yet powerful exercise that required me to build more time into the lesson as the students struggled to master the spreadsheet environment in addition to learning the fundamentals of accounting. The most basic spreadsheet tasks — such as wid ening columns or merging cells, writing formulas and learning data types, and separating the account name from the account balance into separate cells — was time consuming for them to master. That was time I needed to create in my class, but it was worth it; it gave students the space to act in two spheres at once — accounting and technology — which is what the workforce is demanding of them. Educators must give students that experience in the classroom. Accounting programs can also adjust on a macro level. In fall 2021, Saint Peter’s University launched “Microsoft Excel for Accounting & Business Environments,” and the course is now a required computer science course for accounting majors.

Dr. Christopher Young, MBA, MAFF, CVA, is associate professor of professional practice at Rutgers University and founder of the Red Maple Group, a full-service economic firm. He can be reached at chris@theredmaplegroup.com.

This article is the second in a two-part series on differentiating oneself from competitors. It follows on from “The Trusted Strategic Accountant” in the summer 2022 issue of New Jersey CPA. As a professor in a business school, it hurts me to say that business education is foundationally skewed toward a dysfunc tional version of capitalism that evolved beginning in the late 19th century with the suggestion of something called Social Darwinism. Putting aside a gentler idea of capitalism as expressed by Adam Smith in The Theory of Moral Sentiments, capitalism evolved into a dog-eat-dog phenomenon, where the only attribute of a business’s value is cash flow, and the only outcome that matters is winning against competitors.

So, how can the strategic CPA use this idea?

YOUNG, THE RED MAPLE GROUP 12 FALL 2022 | NEW JERSEY CPA

Dr. Gordon further emphasized this idea in his development of the Gordon Growth Dividend Discount Model, where the value of a business is predicated exclusively on the cash flow it provides to its shareholders. Essentially, the value of a firm is equal to the summation of forecasted risk-adjusted cash flows in perpetuity. A NEW MODEL Thankfully, this idea of Darwinian Capitalism is starting to lose favor, especially among the younger generations of businesspeople. Rather than focusing exclusively on financial record keeping, more enlightened pro fessionals also report on other important variables, such as employee and customer satisfaction, product or service quality, environmental damage and philanthropy. This reinforces the one important ingredient missing for most companies: recording other variables of importance aligned with theirThismission.ideamodifies the Gordon Growth Dividend Discount Model. Rather than the value of a company equaling the future cash flows, the value of a business should be reexamined to include all other notions of societal profit predicated on the business owner’s mission. The value of a company is unique to the business owner’s mission, vision and values.

LEARN MORE Sept. 26, Live Webcast DRIVING PERFORMANCE:CORPORATETHECFO’S ROLE IN DEVELOPING COMPETITIVE ADVANTAGE Oct. 28, Live Webcast CFO SERIES — CREATING COMPETITIVE ADVANTAGE njcpa.org/events READ MORE BUSINESS KNOWLEDGEMANAGEMENTHUB businessmanagementnjcpa.org/hub/ Moving Forward By Going Backward

BY CHRISTOPHER

BUSINESS MANAGEMENT

First, understanding the goals and desires of a business is paramount to developing a long-standing, high-value relationship. The CPA can continue to challenge business owners or senior mangement in their thinking when they suggest a rash or illogical decision that may take the company away from this goal.

Historically, the value of a business (V) is equal to the summation (∑) of riskadjusted profits (P). I suggest that business value should be equal to the risk-adjusted financial profits plus the risk-adjusted value of good social profits (SG) provided by the company to others. Essentially, V = ∑(P)+ ∑(SG)

PUTTING IT INTO PRACTICE

Second, the simple formula above will help the strategic CPA think through the most critical aspects of a business. Perhaps the company vision is to provide the highest quality products in the industry. The strategic CPA can record measurements so that the business can stay on track in obtaining this goal. Perhaps the business strives to offer the best workplace for employees, with great pay, high safety standards and the best quality of life. The strategic CPA can work through the development and record keeping of variables and metrics to assist in tracking these goals.

It has been shown that companies with strong ethical brands drive even higher yields. CPAs can help their company or their clients create a more ethical brand, suggestive of a company that records more than just profits. Talk to clients or senior management about their individual goals and the company’s purpose. Find out about the legacy they want to leave. The trusted strategic CPA is that person who moves past the statutory deliverables, the conversations of Sunday’s football outcomes, and moves into the desires of their clients or employer. These conversa tions often do not evolve overnight, but it is a must if you desire to be the strategic CPA who leaves a legacy in this world. Get deeper, ask the hard questions and help move capitalism toward an ideology that is primarily about improving the lives of everyone. Value is unique to each company and each business owner; know what makes them special and help them drive more value from it.

Survey Methodology: The 2022 Paychex Pulse of HR Survey was conducted via an online survey from April 15 to May 6, 2022, among 1,000 HR decision-makers at U.S. companies with 20 or more employees. It is the sixth in an annual series of benchmark surveys investigating HR leaders’ challenges, priorities and use of technology.

Paychex, a national leader in payroll services for small to midsize businesses, is proud to be a NJCPA member benefit provider. Learn more at njcpa.org/benefits.

A system to plan and track manager/ employee check-ins (41%)

SPONSORED CONTENT

A confidential way for employees to receive answers from HR (37%)

6. HR LEADERS ARE PRIORITIZING DEI HR leaders are incorporating DEI initiatives, with 71 percent of HR leaders doing at least one of the following: Offering bias and DEI-related training (33%)

Increased training to optimize remote employee productivity (36%) Online tools to keep managers and employees connected (35%)

Technology to optimize remote employee productivity (39%)

BUSINESS MANAGEMENT The Paychex 2022 Pulse of HR Survey examined how human resources (HR) leaders are delivering on both HR and business objectives while serving employees’ needs. Following are seven key findings that CPAs should be aware of. 1. HR LEADERS FACE TIME CRUNCH Managing remote employees and flexible schedules has created additional demands on HR. Half of those surveyed found HR software/technology boosted their efficiency, and close to 40 percent found it eased administrative burdens. Companies using a new payroll solution/technology reported significant savings: y 37-percent savings in tax preparation time y 36-percent savings in time spent on reporting and entering information into multiple systems y 29-percent savings by giving employees self-service capabilities 2. SUCCESSFUL HR LEADERS LEVERAGE KEY TACTICS Acquiring new talent is critical to businesses and time-consuming for HR leaders. Top tactics include: y Using third-party job sites to boost openings and increase job applicants y Offering remote work and higher pay 3. ATTENTION MUST BE PAID TO EMPLOYEE ENGAGEMENT AND RETENTION HR leaders are challenged with engaging and retaining their workforce. Larger com panies with 500 or more employees have used tactics that may prove helpful to all businesses. For example, larger companies are 33 percent more likely to provide pay transparency and 42 percent more likely to have “stay” conversations. HR leaders are also: y Increasing flexible hours and remote work (41%) y Increasing compensation (36%) y Focusing on employee engagement (35%) y Committing to diversity, equity and inclusion (DEI) (31%) 4. HYBRID WORK HELPS EMPLOYEES THRIVE Offering alternate worksites and schedules is beneficial to employee morale and productivity. Companies with remote or hybrid workers have increased by 124 percent, and flexible scheduling increased by 50 percent. HR leaders plan to manage employees by using: y

Ensuring that vendors/partners have a commitment to DEI (33%) y Making DEI guidelines easily accessible (30%) y Getting a skilled consultant to create a plan (28%)

The Pulse of HR report reveals the link between meeting the needs of employees and business success, and the important role that HR tools and technology play in doing this effectively. To keep up with changing demands, HR leaders are leveraging tools and technology to manage responsibilities, engage employees and achieve HR and business goals. Access the full report at secure/whitepapers/hr-pulse-2022paychex.com/.

7 Ways HR Leaders Are Helping Their Companies Thrive

A full 60 percent of larger businesses will use employee training and skill building to support remote career advancement.

5. SUPPORTING EMPLOYEE WELL-BEING HAS BECOME THE KEYSTONE OF BETTER BUSINESS

7. COMPANIES ARE EXPANDING AND OPTIMIZING BENEFITS Companies are expanding benefit offerings to meet employees’ priorities. Benefit offerings have increased an average of 22 percent compared to before the COVID-19 pandemic.

13NEW JERSEY CPA | FALL 2022

Tackling employee well-being is a priority for today’s HR leaders, with 60 percent expressing burnout as a concern, an increase of 18 percent from before the COVID-19 pandemic. HR leaders plan to help by: Offering flexible work schedules (41%) Emphasizing work/life balance as part of company culture (31%) Encouraging managers to create clear job descriptions/expectations (29%) Providing training on avoiding burnout (26%) Creating confidential ways for employees to communicate concerns (26%)

HR TOOLS AND TECHNOLOGY BENEFIT BUSINESS GOALS

y Who’s going to do it? If you don’t have an in-house marketing team, you’ll need to use a consultant.

READ MORE CLIENT ACQUISITION AND RETENTION KNOWLEDGE HUB njcpa.org/hub/clients LEARN MORE Sept. 8, Oct. 4 or Nov. 1, Live Webcast PODCASTS: HOW TO MARKET YOUR EXPERTISE TO GET MORE CLIENTS Sept. 10, Sept. 26 or Oct. 10, Live Webcast GETTING AHEAD: THE ART OF MARKETING FOR CPAs Sept. 21, Live Webcast ADVISORY SERVICES CONFERENCE njcpa.org/events 14 FALL 2022 | NEW JERSEY CPA

Now that you know your differentiator, tell your audience with a go-to-market strategy.

CUSTOMER ANALYSIS

To help achieve that, the marketing team will pursue the following:

Becky Livingston is the owner of Penheel Marketing, a virtual CMO for CPAs and small business owners. She can be reached at becky@penheel.com

First, determine what you want to accom plish. The marketing plan then supports your business goals. Create a plan that outlines the number of attainable initiatives during the goal’s timeframe.

CASE STUDY y Goal: A solo practitioner in Pennsylvania wants to increase tax season leads by 10 percent over the previous year.

Audience: Small business owners with uncomplicated tax returns and interna tional tax filers within the U.S.; located in a 50-mile radius of the firm. Budget: $1,500 y Marketing Initiatives: review the website for search engine optimization (SEO) and launch a series of Google ads from Feb. 1 to March 31. y Competitor Deficiency: International tax. Opportunity for this firm. Going to Market and Channels: Promote location, years of experience, technical expertise; use website landing page and dedicated email address to capture leads; and work with consultant to craft, monitor and report online ad strategy. y Outcome: Online ad budget of $1,000 resulted in 19,100 impressions (number of times ads were shown), 435 ad clicks and 45 new leads. Goal achieved.

How to Create a Year-End Marketing Plan

BUSINESS INITIATIVES/GOALS

BUDGET Define your budget and success metrics. Then, work with people who can provide forecasts and estimates to help you reach your goals.

y How will the service be promoted, such as advertising, downloadable content, webinars, podcast subscriptions or events?

y Are you located within driving distance? If not, how are you going to engage with them?

In order to reach the right customers, they need to be identified. First consider your primary audience by industry, location, job title, service needs or business entity/ formation. Then define a secondary audience. They might include sub industries, second-tier job titles, reach locations and secondary services.

Example: Our goal is to generate 10 percent more income in 2023 than in 2022.

In general, a customer analysis includes age, location, title, goals, personal challenges, pain points and trigger events. Trigger events are time-based and require your ser vices, such as nonprofit audits, international tax filings, quarterlies and extensions.

Don’t delay. The new year will be here before you know it.

y Measurement Metrics: monitor website page views per month to determine if we are attracting the target audience; generate 10-20 content downloads per month to generate new leads for the sales team.

Identifying your competition is not only important, it’s fun! Prospects have choices when it comes to solving their problems. Do you know what your competition is doing to solve them? Do you do it better, different, faster, easier? Look at what your competition has done in the past and identify their strengths, weaknesses, opportunities and threats. Then use that to craft your unique selling proposition.

y Is your product or service unique? Maybe you use online services or AI to enhance offerings or have more experience.

GOING TO MARKET

MARKETING CHANNELS

This is where you’ll publish content to draw in leads, generate interest in your brand or educate prospects. This might include social media, online advertising, traditional media, events, mailings, app development, email or other channels.

COMPETITOR ANALYSIS

Year-end is right around the corner. What’s the state of your marketing plan? Get on the right track with this outline.

BY BECKY LIVINGSTON, PENHEEL MARKETING

y Initiative: Over the next 12 months, build a blog that becomes a go-to resource for our clients’ questions. It will be our number-one resource for generating leads month over month.

y Does price factor in? Would a seasonal promotion make you more attractive to prospects? Or would a bundled package make more sense? Does the price meet the expectation of your target marketing (too high or too low could be game changer)?

Answer the following:

FIRM MANAGEMENT

y Initiative Goal: Increase our website’s rank on search engines by creating content that addresses prospects’ pain points.

Nonprofit boards in every state except Pennsylvania manage endowment investments and spending under the requirements of the Uniform Prudent Management of Institutional Funds Act (UPMIFA). Board members may be investment experts but have no familiarity with UPMIFA. This creates an opportunity for CPAs to help boards successfully perform their fiduciary responsibilities by advising them on the details of this endowment law.

Financial oversight is a key responsibility of nonprofit boards, but many members lack the understanding of finance or nonprofit accounting to effectively perform this duty. As their trusted advisor, a CPA is perfectly positioned to equip board members for this critical task and ensure that their nonprofit maintains strong governance. Here are six ways to get them there:

Financial terminology, such as restricted funds, functional expenses, net assets and nonprofit revenue recognition rules can be overwhelming and confusing for new board members. But training from a CPA in accounting concepts can quickly bring them up to speed. Despite the critical information foot notes provide, they are often overlooked. In one scenario, a finance committee didn’t read the footnotes and missed a large, underfunded pension obligation. An outside consultant raised the issue and now the organization is taking steps to address the problem.

6. INVESTMENT EXECUTION

2. MONITORING FINANCIAL PERFORMANCE

4. INVESTMENTS

One of the most important board invest ment decisions is determining who will manage investments. Some nonprofits hire an investment consultant to recommend changes to the endowment portfolio. Other nonprofits contract an outside investment company (called an outside chief investment officer or OCIO) to recommend endowment strategy and make day-to-day investment decisions. Nonprofits with the largest endowments build their own in-house investment team. Short-term funds are usually invested by staff in high-quality fixed income securities or by an external investment company. Each option has benefits and shortcomings, but as a financial expert, the CPA can lead the board through these important decisions.

6 Ways CPAs Can Strengthen the Financial Outlook for Nonprofits

5. SETTING TOLERANCEOBJECTIVESINVESTMENTANDRISK

3. LONG RANGE FINANCIAL PLANNING

UPMIFA directs boards to use modern portfolio theory by building portfolios with a diversified mix of asset classes and evaluating potential investments in the context of the entire portfolio and overall strategy. New Jersey did not adopt an optional provision that expenditures above 7 percent are considered imprudent, as was done by some states. Instead, board members are expected to set spending levels using seven factors: duration and preservation of the fund; purpose of the fund and institution; economic conditions; inflation and deflation; expected total return; other available resources; and the organization’s investment policy.

1. NONPROFIT ACCOUNTING 101

John Citti, CPA, CTP, MIM, is the managing member of Impacting Nonprofits, LLC. He is a member of the NJCPA Nonprofit Interest Group and can be reached at john@impactingnonprofits.com

INDUSTRIES

Boards monitor a nonprofit’s financial health and make decisions throughout the year. But to do this effectively, the right information must be presented clearly and concisely. CPAs can work with the board to craft management reports tailored to the expertise of board members and their strategic objectives. Essential information includes liquidity (expressed in dollars and days of operating expenses), accounts payable aging, borrowings, debt covenant compliance, and investment performance and holdings. Since board members can be held personally liable for unpaid payroll taxes, a CPA can put processes in place to ensure they are paid each period.

In addition to evaluating past results and monitoring the present, boards create a vision for the future with a strategic planning process. By using their accounting and spreadsheet skills, CPAs are uniquely qualified to translate the board’s vision into financial plans that set realistic targets for the future.

15NEW JERSEY CPA | FALL 2022

BY JOHN CITTI, CPA, CTP, MIM, IMPACTING NONPROFITS

While UPMIFA sets the regulatory framework for investment management, the board determines the organization’s objectives, risk tolerance and operations. They decide how much to let the nonprofit’s portfolio rise or fall in value (volatility), the amount and timing of redemptions, and the required investment return. The board also sets the credit ratings, maturities and instruments permitted for short-term investments used for working capital expenditures.CPAscanhelp boards codify these requirements in a written Investment Policy Statement, which provides direction for investment managers and acts as the primary investment risk management tool.

OPPORTUNITIES FOR CPA s WITH DISTRESSED CLIENTS

CPAs add tremendous value in bankruptcy, as debtors and their attorneys need accounting advice. But CPAs should be careful, as the rules are complex and present traps for the unwary. CPAs would be wise to consult their own bankruptcy counsel when faced with a client in distress. As the potential for an economic downturn increases, proceeding with counsel’s advice should greatly reduce the risk of costly lawsuits and related liability, while allowing CPAs to capitalize on continued retention during bankruptcy.

BY JOHN W. WEISS, ESQ., AND DILLON J. McGUIRE, ESQ., PASHMAN STEIN WALDER HAYDEN P.C.

During a Chapter 11 proceeding, CPAs can seek to be retained and paid for services rendered to their client during bankruptcy. Allowed professional fees must be provided for in a debtor’s confirmed plan of reorga nization (11 U.S.C. § 1129(a)(9)). Despite this requirement, the risk of non-payment must be considered before servicing a bankrupt client.

Economists warn that a fiscal storm is brewing, with prolonged recession the likely result. Bankruptcy filings seem im minent, and there will be a growing need for CPAs to assist their clients in financial distress. CPAs should be aware of the following key issues and opportunities when their clients face Chapter 11.

Fraudulent transfer actions seek recovery of money or property trans ferred by debtors in the two years prior to bankruptcy. Debtors may also invoke state laws, which include longer look-back periods. Plaintiffs must establish that the debtor: (a) made a transfer with actual intent to hinder, delay or defraud any entity; or (b) received less than reasonably equivalent value in exchange for such transfer or transaction, and at the time of the transfer (i) was insolvent, (ii) was rendered insolvent as a result, (iii) incurred or intended to incur debts it would be unable to repay or (iv) made the transfer to benefit an insider (11 U.S.C. § 548).

Utilizing and strictly adhering to engagement agreements that either require payment in advance (the best defense to avoidance) or ensure a steady payment schedule to support an “ordinary course of business” defense. Avoid “dunning” clients for payment, as dunning can undermine this defense.

The information contained herein is for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem.

Carefully maintaining billing records and ensuring billing terms are stringently followed. To minimize exposure, cease work and require current payment if clients fall in arrears. When a client is in arrears, insist on current payment for new services performed, to argue that such payment represents new payment for new work.

y Preference actions seek to “claw back” payments made on preexisting debt by an insolvent debtor within the 90 days prior to bankruptcy (one year if an insider). Targets of these actions may assert defenses by arguing that such payments (i) were not for an “existing debt,” (ii) were made in a “contempora neous exchange” for the existing debt, (iii) were made in the “ordinary course of business” or (iv) that liability should be reduced by “new value” provided to the debtor following such payments (11 U.S.C. § 547).

16 FALL 2022 | NEW JERSEY CPA

LITIGATION SERVICES & BUSINESS VALUATION

CPAs can minimize risk of nonpayment by:

RISKS TO CPA s DURING BANKRUPTCY PROCEEDINGS

y For CPAs who work with clients prior to bankruptcy, the automatic stay (11 U.S.C. § 362) must be considered. The filing of a bankruptcy petition automatically stays creditors’ actions to collect debts. Accordingly, it is critical that CPAs’ invoices be paid prior to bankruptcy, otherwise, any amounts owed as of the bankruptcy filing could be paid pennies on the dollar or discharged.

TIPS TO MITIGATE RISKS OF NONPAYMENT

Filing an affidavit of “disinterested ness” (to be retained and paid for services following bankruptcy) to prove they do not have any disqualifying conflicts and allow for their retention to be approved by court order. CPAs owed money at the time of a bankruptcy, or who were paid within 90 days prior to commencement of bankruptcy, may face challenges to their retention.

y A company in bankruptcy (or party acting on its behalf) may seek to “claw back” payments made prior to bank ruptcy. These are called avoidance actions and include fraudulent transfers and preferences. y

Opportunities

Risks and for the CPA in Client Bankruptcies

John W. Weiss, Esq., is a partner and chair of the Bankruptcy, Restructuring & Creditors’ Rights practice at Pashman Stein Walder Hayden. He can be reached at jweiss@pashmanstein.com Dillon J. McGuire, Esq., is an associate with Pashman Stein Walder Hayden. He can be reached at dmcguire@pashmanstein.com

BY SUSAN M. DYER, CAE, NJCPA MEMBERSHIP DEVELOPMENT DIRECTOR

Connections Drive Success for CPAs in Business & Industry

At the root of NJCPA membership is connection. Especially in today’s hybrid work environments where face-to-face interaction and interaction outside one’s immediate circle of contacts may be limited, connection and feelings of belonging are critical for success both personally and professionally. Maintaining a link to the CPA profession through NJCPA membership allows those working in the corporate sector to stay current on technical accounting topics and remain embedded in a community rich in knowledge, business connections and personal relationships. When asked about the advice she would give to members in private accounting, Kathleen Powers, CPA, 2022/23 NJCPA president and CFO of the Matheny Medical and Educational Center, urged, “stay connected to the NJCPA — its members will be your lifeline not only in the work that you do but also for your whole career.”

17NEW JERSEY CPA | FALL 2022

Additionally, education and networking needs change when one makes the transition to industry since a CFO or finance director’s focus becomes solely based on their company’s industry, such as insurance, construction, finance or pharmaceutical. Also, the available time for obtaining CPE can change. Though a CPA may not have 60-plus hour work week schedules during busy season as they did in public accounting, they will have to juggle around month-, quarter- or year-end reporting.

Susan M. Dyer, CAE, is the membership development director at the NJCPA and can be reached at sdyer@njcpa.org DO MORE JOIN THE BUSINESS & INDUSTRY PROFESSIONALS INTEREST GROUP njcpa.org/groups READ MORE BUSINESS KNOWLEDGEMANAGEMENTHUB njcpa.org/hub/business

PROFESSIONAL DEVELOPMENT

The NJCPA Business & Industry Professionals Interest Group (njcpa.org/ bip) exists because members in business and industry needed their own forum to discuss unique challenges with issues such as human resources, risk management, technology, finance and operations.

The CPA career journey can take many twists and turns. For decades, the traditional route for CPAs and future CPAs was to start in public accounting and, after gaining experience and servicing various clients in different industries, make the transition to private industry. In many instances, this leap means going from an organization of many CPAs to an organization with some times only one other CPA or just enough CPAs to field a bowling or softball team. The demands and rewards are different between public and private or other segments such as government or academia, but being part of a community of like-minded professionals and making rewarding connections will help all CPAs succeed.

LICENSING AND CPE A key issue for business and industry accounting professionals is the maintenance of their CPA license and meeting CPE requirements. CPAs in public accounting at midsize and large firms often have their CPE credits and license renewal managed by their firm. CPAs working in a finance department or as a CFO may have to manage this on their own. Carefully keeping track of one’s CPE can help smooth the process of maintaining license requirements. The NJCPA CPE Tracker (njcpa.org/cpetracker) tracks and provides a report of CPE credits for courses taken both through the NJCPA and exter nal providers. The report is accepted by the New Jersey State Board of Accountancy in the event of a CPE audit. Another related concern is the cost of taking CPE when an employer does not provide or reimburse for education. While there are many third-party providers of CPE, the NJCPA also has opportunities to take free CPE. NJCPA members automat ically get 20 free CPE credits on technical and other professional development topics (njcpa.org/plus). Free CPE is also available by participating in the Business & Industry Professionals Interest Group, and low-cost options exist through the Virtual CPE Pass (njcpa.org/eventbundles) and in-person chapter programs (njcpa.org/chapters).

Led by Christopher Schiffer, CPA, MBA, CFP®, AIF®, CPFA®, senior vice president at the Wealth Enhancement Group, along with vice leader Caren Jesseman, CPA, MBA, owner and president at CFO Solution, LLC, the interest group has helped members navigate topics during the pandemic, such as Paycheck Protection Program requirements, work-from-home policies and hiring and staff retention during the Great Resignation. The group meets virtually 10 times per year and provides free CPE on relevant topics. Members also engage via the interest group’s forum on Connect (connect.njcpa.org). Jesseman explains, “As a finance professional in industry as opposed to public, you are exposed to a lot more than just accounting. You will also need to become well versed in the operations of an organization to be an effective financial steward.”

STAYING CONNECTED

Asking questions. Attending an in-person event generally offers more opportunities for Q&A time and raising your hand to interact with the speaker in real time. You may even have the chance to further the discussion with the speaker after the event. With your questions answered, the takeaway will be a better understanding of the subject.

Over the past few years, the recurring theme that we have all been faced with is change. As CPAs and accounting professionals, we’ve also seen this change through our continuing professional education oppor tunities. In the beginning of the pandemic, we were limited to learning programs that were hosted virtually. This was a huge change for many CPAs who had previously attended mostly in-person CPE events. Now, as we head back towards a sense of normalcy and decide how to schedule out those 40 CPE hours for the year, let’s take a step back and look at some pros and cons of in-person and virtual education.

Virtual versus

WEALTH

IN-PERSON LEARNING Pros: y Avoids distractions. While you’re phone, you are less likely to be facing distractions, allowing yourself to fully devote your attention to learning and understanding the materials or topics presented. y Change of scenery. Sometimes just getting out of the usual routine can help to clear your head or increase enthusiasm. Generally, in-person events allow for a more fun experience, too. y Networking and socializing with other attendees. In-person events are a great opportunity to meet new people, build relationships and catch up with friends and colleagues. These events bring together accounting professionals with sponsors and other valuable connections. y

Cons: y Travel time. If the event is too far away, you’ll be using up additional time for transportation or may be deterred from even registering. y More expensive. There are the travel costs incurred for gas, flights and hotel stays, and the fees to register for the event may be higher too, due to the costs of hosting the event. y Constraints due to the venue. There may be a limited number of In-Person CPE: Pros and Cons

BY CHRISTINA M. WHITE, CPA, MS, TRAPHAGEN CPAs & ADVISORS

PROFESSIONAL DEVELOPMENT

18 FALL 2022 | NEW JERSEY CPA

VIRTUAL

Increased accessibility. New opportunities have become available, allowing you to attend programs being held all over the state, or even the country, without worry of travel costs or the extra time commitment.

More chances for distractions. While sitting in your office or at your computer, emails, calls or a knock on the door can easily take away your focus. Less interaction. Attendees may feel discouraged from asking questions, or questions submitted electronically can be missed. Also communicating with other attendees and sponsors is often not supported. Some platforms don’t allow you to even view the attendee list.

Christina M. White, CPA, MS, is a manager at Traphagen CPAs & Wealth Advisors She is a member of several NJCPA interest groups and is active in the Bergen Chapter. Christina can be reached at christina@tfgllc.com

Cons: y Technology issues. Technology can be detrimental to the effectiveness of the session. This could impact the host from being able to reach all of the attendees, or for attendees to be unable to access the program. If the application won’t work, it can be a huge waste of time and cause of frustration for all.

Pros: y No travel time. Forgoing travel time not only means less money spent on gas, but not having to allocate additional time from your day to travel back and forth to the venue. Fits into your schedule. More people may be encouraged attend a virtual event since there is a smaller time commitment, especially when you are working with a busy schedule. This applies even more so to programs that are pre-recorded and can be watched at your convenience.

spots or a waiting list due to limited seats available at the venue. The event could also be cancelled or rescheduled due to weather or other unexpected circumstances. LEARNING

y Reliability. The event won’t be canceled due to inclement weather or other unexpected circumstances at the venue.

While change is always a challenging obstacle to overcome, it is clear that both learning formats have their benefits as well as reasons you may be hesitant to attend. There will always be a demand for in-person events, but virtual events are likely here to stay, too. There’s so much that can be done with both formats to help make the expe rience memorable and positive for all. So, whether you’re all in on heading back into classroom learning, ready to log on from your couch, or mixing it up and having it both ways — take a moment to maximize your time and schedule your CPE in the method that works best for you.

njcpa.org/events 20 FALL 2022 | NEW JERSEY CPA

TAX Can’t Move? Move Your Assets. The Often-Overlooked Tax Benefits of DAPTs

Nevertheless, the tax laws of the grantor’s home state are still relevant and must be carefully navigated. For example, both New Jersey and New York take the position that a non-grantor trust established by a resident would be subject to state income tax unless all of the following conditions exist:

y The trust does not own any tangible property located in the state. y The trust has no income sourced to the Moreover,state.New York and California have both enacted versions of a “throwback tax” which imposes a tax on undistributed income earned in prior years that is subsequently distributed to a beneficiary residing in the state.

AREA

Like an individual, a non-grantor trust must pay federal income tax as well as state income tax in the state where it resides. However, a trust can “reside” in a state other than where its grantor does. In that way, a trust can avail itself of the laws of a DAPT state with no state-level income tax, which is especially beneficial to grantors who reside in high-income-tax states.

PRACTICAL CONSIDERATIONS

A CGNG DAPT is structured so that transfers to the trust are completed gifts notwithstanding that the grantor is also a beneficiary of the trust. Such transfers consume the grantor’s estate and gift tax lifetime exemption, thereby removing the assets, income and appreciation from the grantor’s taxable estate. This makes a CGNG DAPT particularly attractive for those who wish to take advantage of the temporarily increased lifetime exemption before it sunsets in 2026.

Finally, for New Jersey and New York resident trusts, it is vital to ensure there is no state source income. While certain measures can be taken to segregate source income, poor drafting or inattention to trust investments could result in a single dollar of source income tainting the trust and subjecting all income to state income tax.

y There are no in-state trustees.

Adam Sandler, J.D., LL.M., is the director of wealth planning at AJ Wealth and can be reached at adam@ajwealthllc.com. Justyn Volesko, J.D., LL.M, is the co-founder and a managing partner at AJ Wealth and can be reached at justyn@ajwealthllc.com.

ADVANCED

ROADMAP

ESTATE AND GIFT TAX

Great care must be taken in drafting the trust to avoid triggering one of the grantor trust rules. For example, distributions to the grantor or the grantor’s spouse must require the consent of another beneficiary (an adverse party) or the trust would be a grantor trust under IRC § 677(a)(1).

Until the late 1990s, spendthrift protection did not extend to trusts established by an individual for their own benefit (a selfsettled trust). The assets inside would still be reachable by their creditors. Many states have since enacted Domestic Asset Protection Trust (DAPT) laws extending spendthrift protection to self-settled trusts so long as the requirements of the state-specific statute are met. While initially intended to achieve asset protection goals, the new creditor protection afforded to DAPTs inadvertently created incredible estate tax and income tax planning oppor tunities for individuals who do not wish to completely part with their assets.

The pitfalls of IRC § 2036 that would ordinarily bring assets of a self-settled trust back into the grantor’s estate are avoided through the DAPT’s unique creditor protection as well as vesting distributions in an independent trustee’s sole discretion.

There are several issues both clients and advisors should be aware of. First, receiving distributions from a CGNG DAPT is counterproductive from an estate tax perspective as the trust assets are already removed from the grantor’s estate. Thus, clients should not gift away assets, or the income from which, they need to spend in theSecond,future. there should be no expectation or implied understanding that the assets will be returned to the grantor in the future. Trust assets should only be consumed as a last resort in the trustee’s discretion.

BY ADAM L. SANDLER, J.D., LL.M., AND JUSTYN VOLESKO, J.D., LL.M., AJ WEALTH LLC

A completed-gift non-grantor DAPT (CGNG DAPT) is a technique designed for those who have significant wealth and income. They are typically structured for the benefit of the grantor, the grantor’s spouse and the grantor’s descendants and sitused in a tax-friendly DAPT jurisdiction (e.g., South Dakota, Nevada, Delaware) by naming an in-state “directed trustee.” This type of trust mitigates both estate tax and income tax liability while maintaining indirect access to the trust assets if the need arises.

LEARN MORE Sept. 28, Oct. 25 or Nov. 1, Live Webcast TRUST ISSUES: A FOR COMPLEX Nov. 2, Live CLIENT

Webcast ESTATE AND LIFE PLANNING ISSUES FOR THE MIDDLE-INCOME

INCOME TAX A CGNG DAPT is also structured so that income and gains are taxable to the trust itself (a non-grantor trust) rather than to the grantor individually (a grantor trust).

SUCCESS IN AN INCREASINGLY

APPRAISALSELLER'S APPRAISALBUYER'S Accounts Receivable $250,000

The land has a cost basis of $200,000. The intangibles include covenants not to compete (ordinary income) and a customer list (capital gain) 50/50. sales price minus the total appraisal value is allocated to goodwill. Both intangibles and the goodwill are amortized over 15 years. building is nonresidential and depreciated over 39 years.

Total

Ralph Loggia, CPA, MST, is a partner at Goldstein & Loggia CPA’s, LLC. He is a member of the NJCPA and can be reached at Ralph@agcpa.net

Using the buyer’s appraisal, the depreci ation and amortization deduction for a full year is approximately $211,000. Using the same tax rates as above, the approximate tax savings is $84,000.

s, LLC 21NEW JERSEY CPA | FALL 2022

Forsale.example,

When making a sale, the buyer usually wants an asset sale and the seller wants a stock sale. The reason for this is because an asset sale provides an immediate write off for some of the assets acquired, providing the buyer with an opportunity to recoup some of the purchase price quickly. A seller prefers a stock sale because it generally means the gain is taxed at the favorable long-term capital gain (LTCG) tax rate, which can be a difference of 7 percent (.37-.20) or more if the rate is 15 percent. With a stock sale, the buyer loses the opportunity for the potential immediate write-offs available with accelerated depreciation under an asset a buyer and seller agree to an asset sale with a price of $1.5 million. Each hires a qualified valuation professional to provide an appraisal of the assets being sold. Neither the buyer nor the seller are C corporations. The results are as follows: $275,000 Assets $100,000 $175,000 $250,000 $250,000 $500,000 $350,000 $175,000 $200,000 $1,275,000 $1,250,000 factors:

In the year of purchase, using the seller’s appraisal, the depreciation and amortization deduction for a full year is approximately $133,000. Using the 37-percent federal tax rate and 9 percent New Jersey tax rate, the approximate tax savings is $54,000.

For buyers, if a deal can be finalized in either 2022 or 2023, it is better to close the deal in 2022 as bonus depreciation is dropping from 100 percent in 2022 to 80 percent in 2023. Keep in mind that if the deal is structured as an installment sale, the gain from inventory and/or depreciation recapture is not eligible for installment reporting. Only capital gain income qualifies. A cost segregation study can help to accelerate the building depreciation from 39 years to assets with a useful life of 20 years or fewer that are eligible for bonus depreciation.

TAX

RESULTS FOR THE SELLER

Fixed

If the seller insists on a stock sale, a compromise could be a Section 338(h)(10) or Section 336€ election, which treat the transaction for federal income tax purposes as if it had been structured as an asset sale. New Jersey conforms to both codeForsections.sellers,the tax on the gain can be deferred by investing in a Qualified Opportunity Zone. If the gain is not de ferred, it should not be subject to the net investment income tax. For New Jersey purposes, if a final-year S corporation or partnership tax return is filed in the year of the sale, the gain can be allocated to the disposition of assets line on the tax return, which would move the gain out of the partnership/S corporation buckets on the personal tax return and into the net income from disposition of property bucket. The advantage is that this gain can be decreased if the seller has current-year losses realized from the sale of securities.

Basis Reporting of the Sale of Business Assets

While a $19,000 tax savings for the seller and a $30,000 savings for the buyer should not be a deal breaker, if the amounts are considered material, then negotiations begin. Once a compromise is reached, the breakdown is reported on Form 8594, Asset Acquisition Statement, Under Section 1060.

TAX PLANNING OPPORTUNITIES

Intangibles

BY RALPH LOGGIA, CPA, MST, GOLDSTEIN & CPA’

Land

y The

Building

Additional

y The

Using the seller’s appraisal and federal tax rates of 20 percent LTCG, 25 percent for the gain on the building, 37 percent for the top bracket and 9 percent for New Jersey, the approximate tax paid is $430,000, leaving the seller with approximately $1,070,000 after tax. Using the buyer’s appraisal and the same tax rates mentioned above, the approximate tax paid is $449,000 leaving the seller with approximately $1,051,000 after tax.

While the price is important in an asset sale, also important is the allocation of the sales price among the assets, the basis, and the depreciation and amortization available for the assets to calculate the remaining cash that remains for the seller after paying taxes and the immediate tax savings for the buyer.

The fixed assets are fully depreciated equipment, furniture and fixtures.

RESULTS FOR THE BUYER

The building has an adjusted cost basis of $100,000.

2. DIGITAL WORKFLOW TRACKING

4. SOCIAL MEDIA

DO MORE JOIN THE EMERGING TECHNOLOGIES INTEREST GROUP njcpa.org/groups LEARN MORE Sept. 20, Live Webcast EXPLORING THE A-B-C-D OF THE DIGITAL AGE AND THE IMPACT ON ACCOUNTING Sept. 26, Oct. 19 or Nov. 28, Live Webcast TECHNOLOGY TRENDS UPDATE njcpa.org/events 22 FALL 2022 | NEW JERSEY CPA

TECHNOLOGY

Nicole DeRosa, CPA, MAcc, is a senior tax manager at Wiss. She is an NJCPA Trustee and has served on several interest groups and committees. Nicole can be reached at nderosa@wiss.com njcpa.org/hub/technology

company. Ask for a demo, or perhaps even a free trial. After deciding on a product, it’s also very important to make sure there’s a process in place to fully utilize the features and maximize the efficiencies offered by the software.

LinkedIn, Twitter and Instagram have become the norm for many businesses; the key is to keep content updated and relevant. By having a strong social media presence, a company can attract new business, retain current business and distinguish itself from competitors, which will ultimately also attract talent. It’s a win-win-win-win situation.

READ MORE TECHNOLOGY PLANNING KNOWLEDGE HUB

Technology Trends to Enhance Your Business

1. DOCUMENT STORAGE

The days of searching through file cabinets filled with red ropes of ledgers and source documents are a thing of the past. Electronic document storage is not only the way of the future, but it has numerous benefits — some of which may not initially be obvious. The efficiencies gained by storing documents electronically will save time and space, which will directly translate into money saved. The initial cash outlay of implementing a cloud-based storage system will pay for itself in no time. Each storage product will vary, so it’s important to be aware of the various capabilities associated with each. CPAs can ensure a product is a good fit for their business by answering following questions: y What types of files is the company looking to store electronically? y How is the file management system set up to enable maximum efficiency in finding specific documents? y How does staff want to access the documents? Is there a mobile application? y Can a client portal be integrated to allow for sharing of documents?

Real-time accessibility has transformed many businesses when it comes to work flow tracking. “One stop shop” cloud technologies can typically be customized for data entry as the information is gathered in one place. Knowing where a specific task stands in the process not only enhances the workflow but can also provide added insights through the generation of reports As technology continues to evolve, many platforms are now introducing mobile applications that enhance the user experience and make it even easier to know where something stands literally at any point in time. From tax returns to notice correspondence and everything in between, digital workflow tracking will not only help to prevent tasks from slipping through the cracks but also help to keep workflows organized and moving forward efficiently.

Many may not think of social media as a technology trend, but it can very easily differentiate your business, increase awareness and, in turn, increase profits.

3. DATA AUTOMATION

It goes without saying that technology is an extremely integral part of running a successful business in today’s world. Although often a significant investment up front, the endless gains in efficiency and productivity will quickly transcend the initial cash outlay. The following are trends that can help everyone from sole practitioners to large public accounting firms to CPAs in business and industry.

BY NICOLE DeROSA, CPA, MAcc, WISS

For tax professionals – this is a no-brainer. In addition to aiding in going paperless, data automation software can do a lot of the heavy lifting — scanning, organizing a PDF and pre-populating tax returns. This can help to eliminate human error as well as save time on manual data entry. Data automation products offer various levels of automation, validation, organization and population, so it’s important to get a good handle on each. It is also imperative to ensure that the product is compatible and “speaks” to the other products and software programs being used at the

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 the multitude of ways that individuals contribute significant time, energy and intellect to developing our profession and fostering its success. The awards celebrate the high achievers who are emerging leaders, innovators, champions of diversity, educators, volunteers, notable women and other individuals who have made a substantial impact in accounting in 2021/22. Read more about the recipients at njcpa.org/awards.23NEW JERSEY CPA | FALL 2022

24 FALL 2022 | NEW JERSEY

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

NJCPA NEWS

Living by example, Al-Nesha is passionate about increasing the number of sustainable small businesses in marginalized communities and the number of Black CPAs. She is a mentor with the National Society of Black CPAs, her high school and her alma mater, Montclair State University. She also offers structured mentorships which lead to paid internships at her firm.

Keri brings new meaning to inclusion. Recognizing a need to give voice and action to issues that matter, she formed the Mazars Inclusion & Diversity Council. She also serves as a Mazars professional mentor to veterans transitioning to civilian life, is a board member of Oasis-A Haven for Women and Children in Paterson and previously introduced a formal diversity and inclusion initiative at a national retailer/manufacturer. CPA

PATRICE K. TURNER, CPA AUDIT PROFESSIONAL AT DELOITTE & TOUCHE LLP Whether through her national DEI efforts, involvement in local and national DEI recruiting, or her National Association of Black Accountant’s board role, Patrice focuses on DEI challenges and tactical solutions. She launched a virtual happy hour for Black professionals and was a program manager for Deloitte’s Stride CPA readiness program that helps diverse students complete the CPA Exam.

MICHAEL A. POLITO, CPA RETIRED PARTNER AT DELOITTE & TOUCHE LLP

Mike has a long tradition with the NJCPA, having served as president for the 2001/02 term, on the Board of Trustees and as a chair of the Finance Committee, NJ Uniform Accountancy Bill Committee and Professional Conduct Committee. He has played an integral role in writing and teaching the NJCPA ethics course since inception in 2002.

LIFETIME LEADER

Mike has a scholarship awarded annually in his name because he helped raise more than $500,000 for the NJCPA Scholarship Fund.

Honoring the champions of diversity, equity and inclusion (DEI) who work passionately to make the accounting 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.

KERI FLEMING CHIEF PEOPLE OFFICER AT MAZARS USA LLP

AL-NESHA JONES, CPA, MBA PARTNER AND FOUNDER AT ASE GROUP

INCLUSIONDIVERSITY,EQUITY&

25NEW JERSEY CPA | FALL 2022

A wide range of skills, one idea of excellence.

Jim,

Mazars congratulates our very own Jim Blake, Paula Ferreira, Keri Fleming, and Ryan Berdnik, along with all of the other NJCPA 2022 Ovation Awards honorees. Paula, Keri and Ryan embody Mazars’ core values and principles everyday by demonstrating leadership while empowering people. at www.mazars.us

Find out more

JOSEPH W. BREEN, CPA, MBA SENIOR TAX ACCOUNTANT AT WITHUM Joe has exhibited dedication, incredible work ethic and willingness to go above and beyond. He is an Elijah Watt Sells Award winner, a two-time NJCPA scholarship winner, the student with the highest GPA from Monmouth University Business School, the winner of the Withum Emerging Leader Award for 2020 and nominee for the Withum Strength of Client Service Award in 2021.

RYAN BERDNIK, CPA, CFP® SENIOR MANAGER AT MAZARS USA LLP

EMERGINGLEADERS

Ryan actively promotes the accounting profession and helps future CPAs achieve their goals. For the past four years, he has led the Mazars Thanksgiving food drive in part with the NJCPA Emerging Leaders Council. He has participated in various NJCPA career nights, the NJCPA scholarship interviewing process, and is a career coach and member of the We Are Mazars committee.

Recognizing savvy superstars who have been working in the accounting profession 10 years or less and have noteworthy

NJCPA NEWS

KYLE R. DROST, CPA ASSURANCE MANAGER AT CITRIN COOPERMAN & COMPANY LLP

26 FALL 2022 | NEW JERSEY CPA withum.com

Kyle is always looking for ways to up his game and broaden his abilities. Because of his unique combination of a strong work ethic and an easy-going nature, Kyle is a frequently requested coach for those participating in the firm’s internal mentoring program. He is also helping to lead the charge on a business development pilot program.

advancementaccomplishments;professionalcombinedpersonalandprofessionalachievementsthatmeritspecialrecognition;and/oractivelyparticipatedintheoftheprofessionorNJCPA.

NICI-TALARICO,KAREN CPA DIRECTOR AT MERCK & CO. INC.

27NEW JERSEY CPA | FALL 2022

Joseph Hunt, CPA, PSASobelCoLLC.com

JOSEPH F. HUNT, CPA, PSA AUDIT SENIOR AT SOBELCO

Karen led Merck’s internal audit group’s response to her company spinning off a new Fortune 500 company, which included the development of the overall audit approach and leading a team of 75 auditors. The former NJCPA scholarship recipient also set up an internal audit function for the new company, where she developed a comprehensive Sarbanes-Oxley audit program from the ground up. Congratulations to our friend and colleague for receiving the Emerging Leader Award

NJCPA NEWS

JAY H. GUTTMANN, CPA PARTNER AT SRG ADVISORS, LLC Jay inspires others at all levels. He has been active on the NJCPA Bergen Chapter board since 2018 and is a well-known voice on the Bergen Chapter Practitioners Forum. Jay is the lead partner at his firm for internship and first-year associate recruiting. He started the firm’s “SOS! Second Opinion Services,” a theirbusinessconsultationcomplimentaryprograminwhichandindividualscanhavetaxreturnsreviewed.

NJCPA OVATION2022AWARDS

Joe is an advocate for the accounting profession and continuously reaches out to engage other young/emerging leaders. An active participant in the NJCPA since 2018, Joe was appointed to the Emerging Leaders Council and founded the NJCPA Book Club. He is also a member of the Finance Committee at The Salvation Army Morristown Chapter.

RACHEL A. SUNTAG, CPA AUDIT SENIOR AT DELOITTE

28 FALL 2022 | NEW JERSEY CPA

An innovative educator, Amy integrates technology tools into the fundamental understanding of auditing and accounting, earning her extremely favorable ratings from students. She is routinely sought out for career mentoring and advice. Her curriculum review regarding CPA Evolution served as a basis for launching the MS in Accounting program at Rowan. She previously worked at EY for 12 years.

Sarah is dedicated to her students’ success and their pursuit of the CPA credential. In 2021, she received the RBS Excellence in Teaching award solely based on student voting. She creates and leads innovative programs in support of her students, including a mentoring program to connect students with practitioners and the “Pathway to CPA” program.

ASSISTANT PROFESSOR AT ROWAN UNIVERSITY

Rachel exudes leadership and promotes community within Deloitte and is the lead of its Junior Talent Council. She is passionate about the accounting profession, having been a featured speaker on Deloitte’s Greater Tri-State practice calls on talent and retention. She is active as a mentor and a teacher at work and serves as a mentor to NJCPA scholarship recipients.

Dating back to 2006 when Chris first joined as a Student member, he has been actively engaged in the NJCPA. He was the Mercer Chapter president in 2016/17 and was elected to the NJCPA Board of Trustees in 2019/20. Chris is a strong supporter of encouraging the next generation of CPAs and is a frequent Career Awareness presenter at both the high school and college levels.

AMY LYSAK, CPA, Ph.D.

CHRISTOPHER R. STOOP, CPA SENIOR MANAGER AT EISNERAMPER

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.

WILLIAM SMITHEMANC. JR., CPA, CFE AUDIT MANAGER AT BARATZ & ASSOCIATES, P.A. Bill has been a leader since he joined his firm through an acquisition several years ago. In a short time, he has risen to audit manager and, in addition to achieving his CPA, recently earned his CFE, all while increasing his responsibilities at the firm to include staff training and being on the acquisition transition team.

LECTURER OF PROFESSIONAL PRACTICE AT RUTGERS BUSINESS SCHOOLNEW BRUNSWICK

NJCPA NEWS

SARAH O'ROURKE, CPA

EXCEPTIONALEDUCATORS

IMPACT

NEIL BECOURTNEY, CPA TAX PARTNER COHNREZNICKATLLP

29NEW JERSEY CPA | FALL 2022

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.

Neil’s contributions to the NJCPA and the tax community are well known. He chaired the NJCPA State Tax Committee (now State Tax Interest Group) from 1998 to 2000 and has continued to make presentations on state tax developments at State Tax Interest Group meetings for more than 20 years. Even during the pandemic, he never missed a beat. He continues to assist the public through the NJCPA’s annual tax Q&A programs.

Jim believes in giving back to the community. He has been a member of the NJCPA since 1993 and has been an active participant in the New Jersey CPA Political Action Committee (NJ-CPAPAC) since 2010. He has also served on the American Institute of CPAs’ Council and is a Private Companies Practice Section (PCPS) board member.

NJCPA NEWS

JAMES BLAKE, CPA PARTNER AND CHIEF OPERATING OFFICER AT MAZARS USA LLP

NICOLE M. DeROSA, CPA, MAcc SENIOR TAX MANAGER AT WISS & COMPANY LLP

As a new NJCPA Trustee and the outgoing chair of the Emerging Leaders Council, Nicole is an inspirational leader at the NJCPA and in the community. Nicole was an NJBIZ Accounting Power 50 award winner in 2020 and 2021, a 2019 NJCPA Woman to Watch award winner and a 2022 nominee for the American Institute of CPAs’ Most Powerful Women in Accounting.

DELLA HAMMER, CPA, CGMA CFO AT FOUNDATIONMAKE-A-WISHOFNEW JERSEY

ROBBIN E. CARUSO, CPA, CGMA PARTNER AT PRAGER METIS CPAs, LLC Robbin serves on the national IRS Liaison Committee for the American Academy of AttorneyCPAs and meets monthly with leaders at the IRS. During COVID, she became an expert on the Paycheck Protection Program and the tax changes enacted. She regularly gave talks on the topic for the New Jersey Business & Industry Association (NJBIA) and other groups.

30 FALL 2022 | NEW JERSEY CPA

NJCPA NEWS

Over the past 10 years, Della's tireless work has strengthened the Make-A-Wish Foundation of New Jersey’s financial resources to grant wishes to more than 5,000 children with critical illnesses, which includes the iconic Wishing Place castle in Monroe Township. Her leadership roles at Chase, PHH and Metlife led her toward New Jersey nonprofit work and giving back to the community.

CHRISTOPHER M. LOVASZ, CPA MANAGING DIRECTOR AT DELOITTE & TOUCHE, LLP Chris is a longtime NJCPA volunteer who is passionate about the success of students and future CPAs. He led the NJCPA Scholarship Fund through important changes to the program including the recent addition of the Sophomore and Minority scholarships. Chris is an NJCPA Trustee and has been active in the NJCPA Student Programs and Scholarship Committee since 2009.

EXECUTIVE IN RESIDENCE AT ROWAN UNIVERSITY AND AUTHOR Jerry is a powerful influencer of the next generation of CPAs. He is the author of Advice for a Successful Career in the Accounting Profession: How to Make Your Assets Greatly Exceed Your Liabilities . Jerry has been credited with elevating the accounting program at Rowan, leading its Accounting Advisory Board with distinction, connecting to students in impactful ways and being an inspiration to the Rutgers mentorship program.

AINSLEY A. REYNOLDS, CPA, CGMA DIRECTOR OF ACCOUNTING AT THE NEW JERSEY DIVISION OF INVESTMENT

BRIAN G. LAWRENCE, CPA, MBA CEO AT FELLOWSHIP SENIOR LIVING As CEO, Brian repositioned Fellowship Senior Living to become a premier provider of senior services in New Jersey. Formerly the CFO, Brian uses his expertise and knowledge as a CPA to analyze trends and direct a fiscally responsible organization.

Brian also guided the Visiting Nurse Association of Somerset Hills to be positioned for merger/ acquisition and sits on the Finance and Property committees of the Millburn Board of Education.

NJCPA NEWS

JERRY MAGINNIS, CPA

DANIEL J. MARQUES, CPA, MT PRINCIPAL AT DRUCKER & SCACCETTI, P.C. Dan is truly a role model. From March 2020 through August 2021, he wrote 23 blog posts chronicling each update to the Paycheck Protection Program (taxwarriors. com/covid-19-ppp). These blogs were collectively read by more than 110,000 unique readers across the U.S. And he did this while managing and growing his own book of business as a partner in the firm and teaching several CPE courses.

Ainsley has made his mark on many levels. He recently completed his third term as president of the New Jersey State Board of Accountancy. He also heads the accounting department at the New Jersey Division of Investment, which manages the state’s $90 billion public worker pension fund.

31NEW JERSEY CPA | FALL 2022

ALAN J. PREIS, CPA OWNER AT ALAN J. PREIS, CPA, PC Alan is a go-to source for New Jersey tax-related issues. He was voted an outstanding instructor by the American Institute of CPAs and a Distinguished Discussion Leader by the New York State Society of CPAs’ Foundation for Accounting Education. He is the co-author and instructor of a fullday course on New Jersey taxes presented annually for the NJCPA.

DANIEL GELTRUDE, CPA MANAGING PARTNER AT GELTRUDE & COMPANY, LLC CPAs

THEUERKAUF,MICHELE CPA MICHELE THEUERKAUF, CPA LLC

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.

ANTINOZZI,VINCENZO CPA AUDIT STAFF WILKINGUTTENPLANAT An innovative whiz when it comes to the audit process, Vinny uses technology and various data analyses to identify efficiencies and leverage tech effectiveness. He is a self-starter who identified the need and then executed on new technology implementation enthusiastically, and he continues this work for the benefit of his firm, clients and colleagues.

32 FALL 2022 | NEW JERSEY CPA

As 2020/21 president of NJCPA Bergen Chapter, Michele quickly worked to steady the ship during the COVID-19 pandemic to deliver valuable programs to members as well as keep them engaged. She also volunteered to stay on as president for a second year and made it a priority to keep the Bergen Chapter connected and eventually back to having in-person seminars.

With regular appearances on television and radio, Dan is wellknown for having a distinguished career in accounting. Inspired by his father's illness, he co-founded the Mike Geltrude Foundation for Melanoma Education and Research. He is the sole sponsor of the David Wright Day and Johnny Damon Day at John Walker Middle School in Nutley and his UNICO scholarships.

EDWARD K. ZOLLARS, CPA OWNER AT THOMAS ZOLLARS & LYNCH, LTD. Ed tirelessly guides and instructs New Jersey CPAs through the NJCPA’s Open Forum member community daily, providing insight into new and existing legislation, tax code references and real-world interpretations to challenging situations. His insight and direction are invaluable, as noted by the many messages of thanks that come through the forum.

INNOVATION

NJCPA NEWS

Shawn has been instrumental in leveraging new technologies, such as tax flow software, to improve Citrin Cooperman’s tax department processes and procedures, and he has ensured adoption of new technologies through training, tracking and tenacity. Shawn has also helped improve the firm’s culture and inclusion by developing strategies to better integrate employees.

MASSOOD,CHRISTOPHERCPA

PAULA G. FERREIRA, CPA OFFICE MANAGING PARTNER AT MAZARS USA LLP Paula is a recognized influencer in the profession — she is the office managing partner and leader of the firm’s accounting and auditing practice in New Jersey, as well as vice chairperson of the NJCPA-PAC. As a proactive leader, mentor and trusted advisor, Paula works collaboratively with local community leaders in growing businesses throughout the state.

DANIELLE ABRAHAMSEN,N. CPA ASSISTANT CONTROLLER AT COMMVAULT SYSTEMS, INC. Danielle is truly forging new ground. She is considered to be a valued partner to her clients as well as a point person who has the right knowledge of the business and knows what’s needed for clients. She has a knack for challenging specific information and successfully digesting concerns as well as providing thoughtful responses and specific examples/ documents to satisfy clients’ requirements.

SHAWN HENDERSON,T. CPA DIRECTOR AND NJ TAX PRACTICE LEADER AT CITRIN COOPERMAN & COMPANY, LLP

33NEW JERSEY CPA | FALL 2022

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

SENIOR ACCOUNTANT AT MASSOOD & COMPANY, P.A. Chris created Elephant CPA, an innovative, low-priced, cloudbased management tool that helps small to midsize accounting firms streamline their businesses and help with client management, time tracking, integrated invoicing, e-signature, electronic payment processing and securing documents. It also helps his own firm increase productivity. Chris is the secretary of the NJCPA Passaic County Chapter.

RYAN P. WARNET, CPA ACCOUNTANT AT SKC & CO. CPAs, LLC With Ryan’s commitment to learning and development, SKC began a data analytics focus group and engaged with Upstream Academy to formally create a data analytics service line that launched in 2021. Truly selfmotivated, Ryan began researching data analytics by taking classes, working with a data scientist and diving deep into the data coming from Quick Books and various other software.

TOWOMENWATCH

COURTNEY A. McLAUGHLIN, CPA SENIOR TAX MANAGER AT JOHNSON & JOHNSON

34 FALL 2022 | NEW JERSEY CPA

LORI A. ROTH, CPA, ABV/CFF

NATIONAL MANAGING PARTNER AT PRAGER METIS CPAs, LLC

MICHELLE GASIOROWSKI,E. CPA PARTNER AT BOWMAN & COMPANY

Michelle is committed to the advancement of women’s health and self-esteem. She is an active member of the National Association of Women Business Owners, where she was honored for her dedication. Michelle is also a board member and coach for Girls on the Run New Jersey and is a Southern New Jersey board member for the American Heart Association.

Courtney believes in giving back. At Johnson & Johnson, she is part of the Culture Team that helps bring awareness about different cultures. She is also a member of the NJCPA Emerging Leaders Council and mentors CPA Exam candidates. In her previous job at Withum, she was active in its East Brunswick Emerging Leaders group, where she organized volunteer opportunities and was a mentor.

Lori is not only personally successful, but she is a caring mentor who genuinely wants every team member to succeed. She maintains a work environment that is flexible, transparent and diverse. Lori was voted one of the Crains NY Notable Women in Accounting in 2021 and made the ROI-NJ Influencers: Power List for 2021.

• NJCPA NEWS

35NEW JERSEY CPA | FALL 2022 Learn more at njcpa.org/certificates

A true role model for female CPAs, Caitlin has developed systems and processes specifically for her healthcare clients that have made a major, positive business impact. Because of her level of knowledge and deep understanding, she now leads the practice area and is actively growing the firm’s client base. Caitlin takes the time to really listen — not only to her clients — but to her staff as well.

NJCPA NEWS

CAITLIN M. SMITH, CPA AT SKC & CO. CPA LLC

ACCOUNTANT

JENNA SANFILIPPO, CPA SENIOR AT WILKINGUTTENPLAN

VALERIE THORPE, CPA WILKINGUTTENPLANAT

MANAGER

When you’re ready to show your competencies, expand your career opportunities or enter new areas of practice, start by earning an AICPA certificate. When you successfully complete any program, you can display a digital badge and gain recognition as an invaluable asset to firm or organization.

Jenna is the whole package, with her dedication to WilkinGuttenplan, the accounting profession and her own personal growth. She is committed to excellence within her team as well as the profession. She brings a lot of energy to her volunteer activities at the NJCPA, which includes being a scholarship interviewer and mentor, a member of the Emerging Leaders Council and helping with the NJCPA Food Drive.

your

Val is the consummate working parent, a highly technical leader and staff developer. She is a great teacher of young staff — patient, thorough, empathetic and always has a smile. She identifies problems but also brings solutions. Val leads various affinity groups for working and new parents and started the firm’s Women’s Group and New Parents Group.

Data AuditingAnalytics • Finance • Cybersecurity • AccountingForensic Personal Financial Planning • Robotic AutomationProcess • Not-for-Profit • IFRSBlockchain Choose a certificate that matches your next career goal. We cover multiple areas: Think bigger. AICPA certificates take your career from here to there.

Member Categories Bylaws Vote on Tap

Affiliates would not be allowed to vote on ballot measures presented to the membership but may be eligible for limited leadership positions including chapter board positions, committee/group chair/ leadership and appointed committees.

36 FALL 2022 | NEW JERSEY CPA Bradley

is it time for... LifeFamilyAChange Time to SELL? Delivering ResultsOne Practice At a time Scan Here

NJCPA NEWS

Between Oct. 18 and Nov. 1, 2022, NJCPA members will be asked to vote on proposed changes to the Society’s bylaws that will update terminology and simplify and consolidate membership categories, making it as easy as possible for graduates/new professionals to remain NJCPA members and start taking advantage of the benefits of membership.Theproposed changes are as follows:

VOTING DETAILS

1. Merge the CPA Candidate and Associate membership classes into a new membership class named Affiliate. The following people would qualify for the proposed Affiliate membership: y Those who have completed the academic requirements to become a CPA and are pursuing further requirements necessary to become a CPA (the current qualifications for the CPA Candidate member class) y Professional staff working in an accounting or finance position under the supervision of a CPA y Any chartered accountant or its equivalent in any country other than the United States (the current qualifications for the Associate member class) y Instructors of accountancy in schools of collegiate standing y Non-CPA owners, partners, shareholders or principals of firms licensed by the New Jersey State Board of Accountancy.

3. Rename the Fellow member class to CPA member (eligibility remains the Additionalsame).information, including a “redlined” version of the current bylaws, is available at njcpa.org/bylaws

In early October, all Fellow members will receive an email from AssociationVoting, an independent online voting platform that provides secure online elections. If we do not have your email address, voting instructions will be mailed to your preferred mailing address as it appears on your profile as of Oct. 1. This address can be either your work or home address. Please take a moment ahead of the vote to confirm that we have the correct email address and mailing address for you at njcpa.org/profile 800-397-0249Bradley@APS.netHolmeswww.APS.net

2. Change the definition of the Student member class to “An undergraduate or graduate student who has an interest in accounting, finance, business or information systems.”

When an Affiliate becomes a CPA, he or she will be elevated to CPA member.

The NJCPA mourns the loss of John (Jack) F. Dailey, Jr., CPA, RMA, PSA, who passed away on June 23 at the age of 71.

In Memoriam

Jack, known for being a stalwart supporter of the NJCPA, par ticularly its Scholarship Fund, was a past president of the NJCPA, a past president of the Southwest Jersey Chapter, and participated in numerous committees and interest groups. He was also an appointed member of the New Jersey State Board of Accountancy. A sought-after presenter, Jack was always available to lend an ear or help educate his fellow CPAs about ethics codes and regulations. In 2021, he won the NJCPA’s Lifetime Leader Ovation Award, which is given to those members who have had remarkable contributions over the course of their lifetime.

Jack was a retired partner at Bowman & Company LLP in Voorhees Township and had been a member of the NJCPA since“Jack1978.will be fondly remembered. He was always available to help author ethics guidelines, inform his fellow CPAs about important regulations or to simply catch up,” said Ralph Albert Thomas, CPA (DC), CGMA, CEO and executive director at the NJCPA. “We will miss him dearly.”

Jack is survived by his wife, Mary; his daughter, Megan; his son, John; and a brother, a sister and two grandchildren.

HOWARD BOOKBINDERJ.

The NJCPA is saddened by the passing of Howard J. Bookbinder, CPA, on June 5 at the age of 83. Known and admired by all ages at the NJCPA, Howard served as an NJCPA Trustee, treasurer of the NJ-CPA-PAC, president of the Bergen Chapter, and member of numerous interest groups and committees. He also was a 2019 Lifetime Leader Ovation Award recipient. Howard will be remembered for his sense of humor, his ability to make everyone feel comfortable and his willingness to go above and beyond to help his fellow CPAs. A member of the NJCPA since 1969, Howard ran a successful accounting practice in Fair Lawn, authored Bergen Record’s Tax Mailbag as well as his own books and was appointed to the New Jersey Israel“HowardCommission.wastruly one-of-a-kind and a great resource to all who knew him. Whether discussing taxes or his time on Broadway, Howard was always ready to talk. He will be sorely missed,” said Ralph Albert Thomas, CPA (DC), CGMA, CEO and executive director at the NJCPA. Howard is predeceased by his wife, Beverly, and his daughter, Melisa. He is survived by his sons, David and Glenn, and his brother, Michael.

JOHN DAILEY,F. JR.

To make an NJCPA Scholarship Fund contribution in memory of Jack and/or Howard, visit njcpa.org/scholarship.

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NJCPA NEWS

The CPA Exam Fee Lottery, which is open from Oct. 1 through Oct. 31, is available to all Student and CPA Candidate Ten winners will be selected at random to receive $750 each to cover the fees associated with taking the CPA Exam. The NJCPA is offering the compensation since taking and preparing for the Exam through review courses and study guides can be very costly. Entries can be made at njcpa.org/cpaexamfeelottery. Winners will be announced in mid-November.

LOTTERY

NJCPA

members.

38 FALL 2022 | NEW JERSEY CPA Don't put your exit strategy ON ICE! Start your planningSuccessiontoday. Start planning your exit strategy today! Visit PoeGroupAdvisors.com/Plan to download our full Succession Planning Guide. clientserviceteam@poegroupadvisors.com1-888-642-2693 Helping accountants write their next chapter With this team, you're always MVP.

Loan Debt Lottery.

To reduce the cost of becoming a the NJCPA is once again the Student

CPA EXAM FEE

“The percentage of students that need federal or private loans to subsidize education costs is on the rise, and with that brings the risk of students eventually borrowing beyond what they make after graduating,” added Zachary Cohen, CPA, manager at CFGI and a member of the Student Loan Debt Task Force. “The lottery is an excellent member benefit that helps lessen the financial burden for those that followed the path to becoming a CPA. Although the impact may not seem significant against larger balances, every dollar helps in the long-term.”

The Student Loan Debt Lottery will distribute $1,200 each to 10 Fellow or CPA Candidate members who have accumulated significant debt in obtaining their accounting education. Entries will be accepted at njcpa.org/studentloandebtlottery from Nov. 1 through Nov. 30. Winners will be selected at random and announced in mid-December.“Studentloan debt has hit staggering levels. Left unchecked, not only can it hinder one’s career path, it can also limit one’s ability to further their education or buy a home. We are thrilled that the Society continues to support debt-holding members through the student loan debt lottery program,” said Melissa A. Dardani, CPA, CFE, MAcc, managing member of MD Advisory Services and a member of the Student Loan Debt Task Force.

STUDENT LOAN DEBT LOTTERY

offering members two lotteries — the CPA Exam Fee Lottery and

CPA,

PROFESSIONAL SERVICES

CLASSIFIEDS

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Retirement-minded Bergen County CPA looking for a small firm or sole practitioner to take over my practice. Write-up and tax practice with annual billing of $150k. I have a very loyal client base. They have requested a smaller firm (sole-practitioner or two/ three member partnership) with part ners between the ages of 40–55. Reply in confidence at njcpa.org/classifieds. Seize a opportunitymerger/acquisitionwithbenefitsfor you. We are looking for firms ranging from $300,000 to $5,000,000 eager to com bine 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 Essexconversation.Countyretirement-minded CPA seeks CPA to assume his partnership interest and to continue with remaining partner at our office location. Retiring partner will remain during transition period. If interested reply to: essexcpa@ gmail.com principals only. New Jersey practices for sale: gross revenues shown: Camden County CPA $1.270M; Somerset Hunterdon County CPA $700k; Toms River metro CPA $443K; Ocean County tax $109K; Elizabeth tax $256K; northwest Essex County CPA $850K; southeast Passaic County CPA $700K; Atlantic Cape May County area CPA $325K; far south Middlesex County CPA $395K; Salem County tax and accounting $500K; Morris County partnership $175K; Gloucester County CPA $615K. For more information, call 800-397-0249 or visit www.aps.net.

MERGERS/ACQUISITIONS

To see additional classified listings or to place an ad, visit njcpa.org/classifieds

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where the company was sold to a private equity firm. “Being e-commerce, that was a lot more fun,” she admits. Eventually, after several years at PwC, an opportunity came up at Tapestry, Inc.

40 FALL 2022 | NEW JERSEY CPA

Allie also learned a lot at her latest educational institution, Columbia University, where she completed her MBA. “I went to get my MBA to study corporate strategy and corporate development,” she says, noting that her current department is very research heavy.

THE EARLY YEARS

After interning in PwC’s assurance practice, she was then hired into the practice after obtaining her B.S. in accounting and completing her CPA. While there, Allie spent most of her time working on pharmaceutical giant Merck. She explains, “Associates were given one area of the business to review/audit in the assurance practice. I was personally responsible for revenue, and thus conducted all required revenue testing.”

BY KATHLEEN HOFFELDER, NJCPA SENIOR CONTENT EDITOR

LOOKING FOR STRATEGY

So, what inspired such a determined pro fessional to go into accounting in the first place? Her alma mater, Lehigh University. “They have a very good accounting program,” she explains. “At Lehigh, the university sets students up to graduate with nearly 150 credits and the skills to pass the CPA Exam.” She feels that its course structure helps encourage students to take the CPA Exam right after college. Her family also influenced her decision to go into accounting. “I originally thought I wanted to be a sports agent,” she explains, but her father convinced her that accounting was a good business major with great job opportunities. Allie’s mother is also a CPA. A lot of students, she says, don’t love accounting while attending their university but having an extra push from family in the field definitely helps.

Allie enjoyed the work but soon realized PwC’s transaction services practice, which consisted of financial due diligence and mergers and acquisitions work, seemed more interesting and challenging to her. Never one to back down from new experi ences, Allie jumped feet first into the trans actions group and loved every minute of it. There, she advised clients on how much they should buy or sell a company for. “I would normalize earnings in order to produce an earnings number that our clients could either 1) bid off of in order to acquire a target company or 2) use as a proxy selling price if they chose to sell their own company,” she says. “What I liked about the work was the constant new challenges and projects. I would work on a deal for a month or so and then, shortly after, be placed on a new deal; my work was constantly changing.”

From Traditional Accounting to High-Fashion Strategy

As the global retail apparel and fashion holding company for Coach, Kate Spade New York and Stuart Weitzman, Tapestry offered Allie an opportunity to focus her career on corporate strategy. Now, after more than four years at Tapestry, Allie is pleased with her decision. “I wanted to make a career move to go in-house where I could see the full lifecycle of my work play out,” she explains. “At the time I joined, Tapestry had just rebranded from Coach to Tapestry. They wanted someone who had accounting, controls and an M&A background to help integrate Kate Spade into the organization.” That experience also proved to be exactly what the NJCPA could use in its chapter leadership positions. Allie became the president of the NJCPA Essex Chapter in June, after serving on the chapter board since 2019.

Alexandra (Allie) Guccione, CPA, had one of the more typical beginnings in the field of accounting, but the Fairfield, New Jersey, native’s career certainly didn’t stay that way.

In the transactions group, Allie worked mainly with private equity firms on deals in health care and pharma. “Being in New York and New Jersey, pharmaceutical deals were very hot at the time,” she explains. She also particularly liked working on a deal for the e-commerce giant Chewy.com,

MEMBER STORY

Explore these events and more at NJCPA.ORG/TAXEVENTS Planning Strategies | Federal Compliance Local Compliance | State and Federal Broad Overview TAXINDIVIDUALSURGENT’SCAMP FRIDAY, SEPT. 30 LIVE WEBCAST 8 CPE Credits CONFERENCETAXMULTISTATE WEDNESDAY, NOV. 16 LIVE WEBCAST 8 CPE Credits TAXFEDERALSURGENT’SCAMP FRIDAY, OCT. 28 LIVE WEBCAST 8 CPE Credits TAXANNUALSEMINAR FRIDAY, JAN. 6 LIVE WEBCAST 5 CPE Credits WEDNESDAY, JAN. 18 WEBCAST REPLAY 5 CPE Credits CPE for your Success Throughout the Tax Life Cycle SEPTEMBER 2022 JANUARY 2023 EDUCATIONTOPTAX

NJCPA.ORG/EVENTBUNDLES YOUR WAY TAKE NJCPA CPE ARE BUNDLESCPEBACK! THIS YEAR’S HOTTEST CPE VIRTUAL PASS Eight Webinars/ 24 CPE Credits CHAPTER SEASON PASSES In-person and Local CPE

New Jersey CPA - Fall 2022

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