New Jersey CPA - Fall 2023

BUSTING MYTHS:

TOP 10 MESSAGES FOR THE NEXT GENERATION

THE AI REVOLUTION: TRANSFORMING ACCOUNTANTS' ROLES

THE CHANGING LANDSCAPE OF NON-COMPETES AND RESTRICTIVE COVENANTS

AIYSHA (AJ) JOHNSON, MA, IOM Chief Executive Officer & Executive Director ajohnson@njcpa.org

THERESA HINTON Chief Operating Officer thinton@njcpa.org

DON MEYER, CAE Chief Marketing Officer dmeyer@njcpa.org

RACHAEL BELL, CAE Managing Editor rbell@njcpa.org

KATHLEEN HOFFELDER, MA Senior Content Editor khoffelder@njcpa.org

DIANE ESPIRITU Senior Designer despiritu@njcpa.org

4 Busting Myths: Top 10 Messages for the Next Generation

New niche markets, AI, remote work and more-efficient billing practices have shed new light on the accounting profession. But the old stereotypes remain. We asked emerging leaders and others to debunk common myths about the profession to attract the next generation.

8 The AI Revolution: Transforming Accountants’ Roles

Through the use of machine learning, artificial intelligence and better data analysis, accountants can free up time to become the trusted advisors they’ve always strived to be. Learn how these tools can speed up decision-making processes and create efficiencies.

10

The Changing Landscape of Non-Competes and Restrictive Covenants

Pending legislation in the New Jersey Legislature could significantly limit the enforceability of non-competition agreements, such as keeping them to one year and restricting the scope to the borders of New Jersey. Along with other crackdowns nationally, more limitations are likely.

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Getting to Know AJ Johnson

BY KATHLEEN HOFFELDER, NJCPA SENIOR CONTENT EDITOR

the innovative work-for-credit programs initiated by Saint Peter’s University and PwC, Seton Hall University and Withum, and hopefully others soon and working towards keeping the accounting profession open and diverse.

connection.” She added, “we need to support our chapters to make sure they have the resources they need to go out and promote the profession.”

The New Jersey Society of CPAs welcomed Aiysha (AJ) Johnson, MA, IOM, as CEO and executive director, effective June 12, replacing Ralph Albert Thomas, CPA, CGMA, who retired after 23 years. Prior to the NJCPA, AJ was executive director at BKR International’s Americas Region, where she was responsible for overseeing the implementation of strategic efforts for BKR accounting and business advisory member firms.

INCREASING CANDIDATE FLOW

Attacking the dwindling number of accounting students and CPA candidates head-on will be top of mind for the Chicago native. “I would like the NJCPA and the state of New Jersey to be an example of what we can do to resolve some of these pipeline issues,” she said, noting there are multiple avenues to open the spigot for more accounting candidates. These include tapping emerging leaders more; working with our NJCPA chapters; supporting

Emerging leaders should get prepared to have even more seats “at the table,” she explained. “There’s a lot the emerging leaders can do now — that’s inclusive of the young professionals who may or may not be a part of our interest group. We need to call on them and others to go to high schools and share their stories,” she said. “The younger generation is going to identify with them.”

Hand in hand with those pipeline efforts are initiatives to increase NJCPA membership. If young professionals have an opportunity to learn and grow at their own organizations as well as at the NJCPA — and then channel that into becoming leaders — then we are doing something right, she maintained. “I would like to see as many young professionals be members and for firms and companies to push for that.”

Educators can play a big role in helping to shape, or turn, students’ collective minds about the profession. “They are the ones who are going to help if they see an individual who may have a strong affinity for learning accounting and have the skills,” she said. “They can tell them, ‘Accounting is an excellent pathway for your career.”’

Similarly, the NJCPA chapters, according to AJ, “are also a great peer-to-peer

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Keeping those doors open and diverse will also attract young professionals. To AJ, more outreach — as well as the right kind of outreach — is needed. “We know some firms have already done a lot of work around diversity, equity and inclusion, so we need to understand how we can create an environment to attract diverse talent and get them in earlier to experience accounting and hopefully gain an interest in it.”

AMPLIFY THE PROFESSION

Advocating for the profession is also front and center for AJ. “If we are to amplify the profession and obtain the attention of lobbyists and lawmakers, then we can impact the business landscape and community. We will be acting on our vision — helping accounting and finance professionals to thrive in their careers.”

Supporting the NJCPA Affiliate member category assists those advocacy efforts. “Outreach to the larger community of accounting professionals who are not CPAs and who could potentially be shown an alternative pathway/journey to becoming a CPA is needed,” she said.

LESSONS LEARNED

At BKR, AJ discussed the many issues that impact the profession nationally and globally. “Everyone is having conversations around artificial intelligence and data analytics; that’s regardless of firm size and environment,” she said. “Those who embrace the fact that change is coming will allow us to strengthen our position and share our story. You will always need the human checks and balances.”

Going forward, she plans to tap those discussions with NJCPA members. “What I’m really excited about is drilling down in New Jersey and having impact here,” said AJ, who, in her spare time, also plans to dig deeper into improving her golf and pickleball games.

WE WALK THE TALK.

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BUSTING MYTHS: TOP 10 MESSAGES FOR THE NEXT GENERATION

The accounting function today seems more like a distant cousin of what it was when the parents of the current Millennial and Gen Z workers first walked the halls of their organizations. Technological advancements have done a lot to “bust” old myths about what it means to be an accountant or CPA. Yet, old stereotypes remain.

Here are the top 10 messages that members of the NJCPA Emerging Leaders Interest Group and others want communicated to the next generation:

MYTH BUSTER #1: ACCOUNTANTS CAN HAVE A GOOD WORK/LIFE BALANCE.

No more horror stories.

“While eager to enter the workforce, many students have voiced their hesitation about the path to CPA licensure and/or concern about the longevity of their future career in accounting. Such uncertainties often originate from accounting horror stories communicated by peers including unsuccessful CPA Exam attempts, demanding clients and work/life imbalance. The perception of a prosperous career as an accountant is diminished before many of these students experience their first internship or entry-level job in the field. As current CPAs, we can change this perception by sharing more stories about what keeps us excited about the profession. My passion for accounting grows with each engagement as I strive to become a cherished advisor to my clients and a meaningful mentor to the next generation of young professionals. The stories I share revolve around projects I’ve worked on that help clients and teams achieve their goals. We all have invigorating experiences we can share to

inspire the next generation to enter the accounting field with confidence. No more horror stories.”

Ryan Berdnik, CPA, CFP®, senior manager at Mazars USA

“Yes, the hours can be more around busy season or when onboarding a new client, for example, but they still have time for a social life, time to work out and even study for the CPA Exam. Yes, there is a ‘busy season’ which is busier, but there is still a work/life balance that is attained. This myth ultimately falls on employers as they need to staff appropriately to avoid burnout.”

Nicole DeRosa, CPA, Macc, partner at Wiss

“Many who are new to the profession don’t recognize that the real opportunity as a CPA is to help people. Unfortunately, the profession is often viewed as a combination of tangible work products and long hours along with stressful tax deadlines. That isn’t very inspiring! Instead, what we are all looking for is an opportunity to make a difference in the work that we do. I’d stress to aspiring CPAs that whatever industry they begin working in, they will have the potential to make a profound difference in someone’s life — and bring solutions and stability to whatever situation it is they are facing.”

Joseph Hunt, CPA, PSA, assurance manager at CliftonLarsonAllen

“Many firms and organizations promote flexible work arrangements, remote/hybrid work options and a healthy work/life balance. The work culture and the potential for work/life integration within the profession is of critical importance.”

Jeremy I. Kaye, CPA, audit manager at Deloitte

“People think CPAs and accountants sacrifice personal time. Despite busy times and deadlines, CPAs and accountants enjoy flexibility and freedom in choosing when and where to work, which gives them time to focus on their personal aspirations.”

Paul L. Peterson, CPA, managing partner at Wiss

MYTH BUSTER #2: ACCOUNTING IS A FUN JOB.

“Most people don’t think of accounting as a ‘fun’ career, but fun is so subjective because it is ultimately what you make of it. As a tax professional, I have been really fortunate to do some pretty fun things during my career. Through my direct involvement with the NJCPA, I have appeared on TV and radio and have been quoted in several noteworthy publications. On the teaching front, I have been an adjunct professor and have both attended

and spoken at accounting-related conferences across the nation.”

Nicole DeRosa, CPA, Macc, partner at Wiss

“What I love most about my job is that it is not the same thing day in and day out.

The accounting profession is a profession of problem solvers, and CPAs are some of the most well-rounded individuals. Helping a nonprofit organization find ways to make their dollars go further and help more people is where I spend most of my time. If you told me as an accounting student that I’d have the opportunity to work side by side with nonprofit organization leaders to help them help more people, I’d sign up immediately.”

Joseph Hunt, CPA, PSA, assurance manager at CliftonLarsonAllen

“I recently had the opportunity to work with the toll auditors and learn the process of how E-ZPass works both independently and in collaboration with their system. I also work with water, sewer and landfill authorities, which gives me the opportunity to always learn something new and unique about each client. Growing up, I never even knew that these entities had independent auditors, so this goes to show how diverse the accounting profession can be!”

Lexi B. Wilson, CPA, manager at Bowman & Company LLP

MYTH BUSTER #3: MANY ACCOUNTANTS ARE EXTROVERTS WHO LOVE TO SOCIALIZE.

“Generally, most people think of accountants as introverted hermits who sit at a desk and crunch numbers on a daily basis while working crazy hours.

What I love most about my job is that it is not the same thing day in and day out.

This myth could not be further from the truth; it is the polar opposite of what people in the accounting profession actually do. There are accounting professionals who are introverts, yes, but many are extroverts who love to socialize. Whether it is with their colleagues at a company event or while working on a project, onsite at a client or with peers in the profession at networking events, one thing is for sure: Accountants are not all introverted hermits.”

Nicole M. DeRosa, CPA, Macc, partner at Wiss

“One thing I learned early on in my career is that CPAs are some of the most passionate and driven professionals out there. So often we get mixed in with the public’s stereotypical idea of accounting; we are seen as nerdy, anti-social and boring. I can safely say CPAs are so much more than that. We are passionate about learning. Every day, we face a new challenge and work through it. Whether it is bouncing ideas off peers or doing independent research, we encourage the challenge and find the answers. We are also passionate about servicing our clients and companies. I can recall one day when I worked in public accounting and went into a client’s office to help them with some questions. Two hours later we had all the questions answered. And we also set up her Spotify!”

Matthew J. Mojica, CPA, financial reporting specialist at Prudential Financial

“I think the biggest stereotype surrounding the accounting profession is that we are all introverted and work alone at our desks. In my experience, that could not be further from the truth! I rarely go a day without communicating with my clients, and I interact with my team daily. It is so important for accountants to have strong communication skills, as an integral part of our job is to create and build relationships with clients and collaborate with our team.”

Lexi B. Wilson, CPA, manager at Bowman & Company LLP

MYTH BUSTER #4: ACCOUNTANTS PROVIDE HIGH-QUALITY ANALYSIS FOR BETTER DECISION-MAKING.

“Today, we get to provide higher-quality analysis faster than ever before. We would be doing ourselves a disservice if we did not acknowledge that many of the changes in our industry align with what Gen Z demands in a career. Young CPAs are being exposed to, and can exercise, professional judgement earlier in their careers thanks to basic tasks being replaced or reduced by technology. A generation that places a high degree of importance on finding meaning in their work and emphasizes entrepreneurial behavior would be attracted to a profession that advises business leaders, protects the capital markets, leverages new technology and is comprised, in part, by thousands of independent firms. It’s on us to communicate this well enough to inspire the next generation.”

Alex Agnoletto, CPA, MSA, CFO at Blue Foundry Bank

MYTH BUSTER #5: ACCOUNTANTS ARE STRATEGIC THINKERS.

“To be a CPA in today’s economy is to be at the epicenter of the decision-making process for any business that chooses to engage with you. It means that you have taken the truest form a trusted advisor can take — one that is intimately involved in the creation and growth of a client’s income and quality of life. With some of the most significant technological advances now available, prospective CPAs are in an ideal position to unilaterally end the compliance-driven stigma current CPAs are now battling. What they now need to ask themselves is this: Are they ready to take on such a vital role and help change the course of a profession?”

Sean P. Breheney, CPA, MBA, principal at PKF O’Connor Davies

“Accountants think critically to understand the inner workings of a business and empower clients to build a sound financial future better than anyone. Walking alongside clients during challeng-

ing life stages and navigating them through uncertainty are perhaps the most fulfilling aspects of becoming an accountant. For those with a passion for serving the community, accounting is a catalyst for change, allowing accountants to make an impact and join a larger initiative, whether servicing nonprofits or volunteering on the advisory board of a local organization. Providing a level of confidence to donors and stakeholders and being called upon for technical expertise helps accountants stay relevant and respected.”

Kim Condurso, assurance associate at CliftonLarsonAllen

“Another myth surrounding accountants is that they’re just number crunchers and tax experts. In fact, accountants play a vital role as a valued advisor to families and businesses. Let’s use football as an example. Becoming a CPA or accountant may seem like the role of the punter or kicker; both are valuable but isolated in specialized roles. A CPA or accountant is more like a quarterback, skillfully coordinating and orchestrating various elements for families and businesses alike. They step into the role of trusted advisor, guiding financial decisions with precision and finesse.”

Paul L. Peterson, CPA, managing partner at Wiss

MYTH BUSTER #6: CAREER POSSIBILITIES ARE ENDLESS FOR ACCOUNTANTS AND

CPA s.

“Young professionals need to know that accounting is a dynamic profession where your professional possibilities are endless. The principles and concepts of accounting are woven throughout society — there is truly no place where accounting does not have an impact. Every business or industry needs someone who understands the fundamentals of accounting to operate successfully. From sports teams and entertainers, to real estate entities and everything in between, a strong accounting foundation is important.”

Tara M. Baldwin, CPA, manager at WilkinGuttenplan

“Warren Buffet once said that ‘accounting is the language of business.’ Learning this language (and arguably showing your expertise of it by getting a CPA license) creates limitless opportunities for your career. Accountants are in a very unique — and advantageous — situation where they can ‘get a seat at the table’ and help businesses make key strategic decisions. There are not many other lines of work that provide as much empowerment as becoming an accountant or CPA.”

Zachary Cohen, CPA, senior manager at CFGI

“Global experiences allow CPAs to travel and become immersed in diverse cultures and experiences as remote work becomes more universal. The CPA license offers accountants a gateway to amplified earning potential, and that upward trajectory continues throughout each career stage. Career possibilities are endless and vast for accountants and CPAs, from academia to government and beyond, and the CPA license connotes an advanced level of business savvy and proficiency. Despite the misconceptions of accounting being a boring profession, the future is dynamic and ever-changing, with tremendous potential for transformation.”

Kim Condurso, assurance associate at CliftonLarsonAllen

“Accounting offers a wide range of career opportunities beyond traditional roles. It is not just about bookkeeping and crunching numbers all day. CPAs play critical roles in areas such as financial analysis, strategic planning, risk management and consulting. The varied career paths and growth potential are key advantages of the accounting profession.”

Jeremy I. Kaye, CPA, audit manager at Deloitte

MYTH BUSTER #7: ACCOUNTANTS AND CPA s HAVE MANY WEALTH-BUILDING OPPORTUNITIES.

“Let’s talk about the rewards. I’m not sure why, but accounting is underrated in terms of pay. The reality is that it is a highly compensated field with wealthbuilding opportunities. I’ve never met an unemployed CPA!”

Paul L. Peterson, CPA, managing partner at Wiss

“Being a CPA gives us the freedom to live the lives we want! With the high pay and great flexibility, we are able to travel, go to music festivals, work anywhere in the world and pursue our passions! CPAs aren’t boring number pushers; we are passionate individuals who love learning, challenges, servicing our clients and chasing what makes us happy.”

Matthew J. Mojica, CPA, financial reporting specialist at Prudential Financial

MYTH BUSTER #8: ACCOUNTING OFFERS THE ABILITY TO SHIFT CAREERS.

“Going into accounting means that you have a knack and understanding for business. This creates many career opportunities or potential mid-career shifts because, in the end, you have the basis for being proficient in business (i.e., accounting). It has allowed me to work across the country and the world providing professional services both as an internal and external consultant. In the early stages of my career, I was in audit. I am currently in tax and advisory services. Not many careers could have provided such opportunities and career shifts in my technical service offering.”

Robert Premselaar, CPA, owner at Premselaar CPA LLC

MYTH BUSTER #9: DEMAND FOR NEW CPA s TO REPLACE BABY BOOMERS IS HIGH. “With more and more CPAs from the Baby Boomer generation retiring, the demand for new CPAs to take their place has never been higher. Adding this to the already known benefits of job security, limitless earnings potential and the prestige that comes with a CPA license, it seems like a no-brainer for young professionals to consider this line of work.”

Zachary Cohen, CPA, senior manager at CFGI

MYTH BUSTER #10: THE REWARDS OF ACHIEVING THE CPA LICENSE ARE WORTH THE COMMITMENT.

“Firms are evolving to meet the changing needs of their staff — even more so than other professional services. Young professionals also need to know that the CPA Exam should not scare them. Yes, it is a challenging exam. Yes, it involves a personal investment and commitment of both time and money. However, the reward of achieving this designation and the esteem that comes with it, as well as the opportunities, is well worth the commitment.”

Tara M. Baldwin, CPA, manager at WilkinGuttenplan

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The varied career paths and growth potential are key advantages of the accounting profession.

THE AI REVOLUTION: TRANSFORMING ACCOUNTANTS’ ROLES

By SEAN P. BREHENEY, CPA, MBA PKF O’CONNOR DAVIES

Specific to the accounting industry, AI is used to automate repetitive, high-volume and time-consuming tasks traditionally performed by humans. These tasks include data entry, reconciliation, classification and analysis of financial transactions. Functions such as tax preparation automation and financial statement audit testing have also become targets of AI implementors. If implemented the right way, AI has the potential to significantly improve efficiency and reduce costs for the accounting industry while freeing up professionals’ time to focus on higher-level, value-added engagements.

MACHINE LEARNING

The impact of machine learning on the steady evolution of AI cannot be overstated. As algorithms created to learn from provided data, the process of machine learning has enabled the automation of repetitive tasks that have historically taken up a great deal of an accountant’s billable time. With such processes in place, accounting firms are able to speed up decision-making processes while simultaneously lowering associated costs.

While the financial ability to invest in higher levels of machine learning is generally restricted to the major firms, smaller firms can use pre-built machine learning software to implement the same processes on a smaller scale. Machine learning will have a direct, positive impact on the future importance of advisory services. With time requirements within both auditing and tax compliance processes significantly reduced, advisory services has seen and will continue to see a significant rise.

HOW AI CAN HELP

While there may be an overarching concern about AI’s potential to replace or eliminate many human aspects of the accounting industry, it offers a more-intuitive approach to data analysis that can eliminate the impact of human error and provide accurate, precise and consistent results. The use of AI can also help companies comply with laws and regulations as it can recognize patterns and detect anomalies that suggest noncompliance. This will be seen most prominently within the audit industry in the overall reduction of fraud risk.

By automating compliance processes, AI helps accountants save valuable time and effort, prompting the exploration of new specialties. With lower-level tasks and processes now automated, job functions will change, and accountants will find ways to add higher levels of value in other practice areas. They will be able to focus on the human element, allowing them to stand out from their peers.

THE IMPACT ON ACCOUNTING JOBS

This is the big question people have when it comes to the development of AI within the accounting industry: What will happen to the jobs? One significant impact of AI on the accounting profession is the perception of inevitable job displacement. This notion has gained some steam over the last several years as the accounting profession has experienced the steady automation of previously manual, time-intensive tasks.

For example, before the emergence of AI, individual bookkeepers were relied upon to classify transactional information leading

Despite having an historical reputation as a relatively conservative profession, accounting has been steadily shifting to embrace technological advancements, the most relevant of which is artificial intelligence (AI).

to the formulation of an organization’s books and records. They have also historically been counted on to reconcile individual accounts on a monthly basis. These processes are (and have been) time intensive, delaying an organization’s monthly close by days or even weeks. With AI and machine learning in place, these tasks have been automated, freeing up accountants and bookkeepers to focus on higher-value tasks. This technology has also been implemented in processes such as accounts receivable and payable, as well as the generation of routine financial reporting.

In the world of auditing, AI programs are currently being used to test audit samples. With the efficiency that AI creates in this process, auditors are able to test larger samples (if not 100%) of applicable transactional information. This allows them to focus on higherrisk audit areas, raising audit quality while simultaneously reducing audit-related costs.

Success in this evolving industry can and will be found by those professionals who are willing to buy in to developing AI technology in addition to being able to adapt and leverage the opportunities that will arise. With the understanding that current and future accountants will need to develop skills that go beyond those considered to be traditional accounting, early adopters of new technology such as AI will give accountants the ability to make themselves stand out, becoming an irreplaceable talent within the industry.

THE BOTTOM LINE: SHOULD WE BE WORRIED?

The short answer is “no.” Of course, the longer answer comes with a caveat. AI will inevitably continue to leave its mark on the accounting industry and its professionals in the coming years. The generation of precise, transparent financial data will be critical to both the integrity and reliability of financial reporting, and, with AI, it can be achieved consistently — creating a new purpose for roles within the profession.

It is only natural that current (and future) accountants are concerned about the establishment of AI within the accounting industry. However, it’s important for them to recognize that it is not necessarily a direct threat to their livelihood. It is an opportunity for them to evolve, improve, advance and differentiate.

Current and future AI tools, for the most part, will take over the “low-hanging fruit” — basic tasks and processes that do not require a human element. This will allow those accountants to focus on higher-level tasks that rely upon human expertise. With innovation comes change, and accounting professionals desiring to be at the forefront of this movement need to be willing to stay abreast of the latest AI advancements and work collaboratively with technology to stand out amongst their peers and establish themselves as true irreplaceable assets.

READ MORE AI KNOWLEDGE HUB njcpa.org/hub/ai

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THE RISKS AND BENEFITS OF CHATGPT AND ARTIFICIAL INTELLIGENCE

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Sean P. Breheney, CPA, MBA, is principal at PKF O’Connor Davies. He is a member of the NJCPA Emerging Technologies Interest Group and numerous other interest groups and committees. He can be reached at sbreheney@pkfod.com.

THE CHANGING LANDSCAPE OF NON-COMPETES AND RESTRICTIVE COVENANTS

By JOHN M. LOSINGER, J.D. SAIBER LLC

A common example of a non-compete restriction is a new CPA who signs such an agreement as part of his or her onboarding paperwork. Years later, the CPA considers moving to another firm, or opening their own firm, but that non-compete still exists, with everyone unsure of what it means. Will the employee comply with it? Will the employer seek to enforce it? If a lawsuit is filed, will a court enforce it? In New Jersey, the general rule is that it depends.

Restrictive covenants are agreements — such as non-competes, non-solicitation agreements and non-disclosure agreements — that govern an employee’s rights and obligations after he or she separates from an employer. Under current New Jersey law, these agreements are generally enforceable and must be considered on a case-by-case basis.

A non-compete is enforceable as long as it is reasonable in duration, territory and scope. The court will weigh an employer’s legitimate business interests against the hardship imposed on the employee. If a court determines that a non-compete is overly broad, it can “blue pencil” the agreement to narrow it in a way that would be reasonable and enforceable. This remains the current law in New Jersey. However, over the past few years, there have been several proposals that would upend years of state jurisprudence by curtailing, or completely eliminating, non-competes.

PROPOSED NEW JERSEY LEGISLATION

There is legislation pending in the New Jersey Legislature (A3715) that would significantly limit the enforceability of non-competes. Among other things, the proposed legislation would statutorily limit non-competes to one year and would limit the scope of a non-compete to the borders of New Jersey. An employee working in New Jersey could not be precluded from working in New York, for example.

In addition, under the proposed legislation, an employer would be required to pay an employee “garden leave” for the entire duration of the non-compete. This means that the employer would have to pay 100% of the employee’s pay and benefits for the entire time that the employee is precluded from working for a competitor. Under the proposed legislation, overly broad non-competes would be null and void and the court would no longer have the ability to blue pencil a non-compete to make it reasonable. The pending legislation would not apply retroactively to existing agreements.

This legislation has been pending in the Legislature for over a year, and it remains unclear whether it will gain the momentum necessary to be passed into law. But the theme of limiting the enforceability of non-competes is consistent with nationwide trends, including those occurring at the federal level. It should be noted that the New York legislature recently passed a bill banning non-competes between employers and employees. The legislation will not apply to agreements entered into in New Jersey but could influence the New Jersey Legislature with regard to its pending legislation.

THE PROPOSED FTC RULE

In January 2023, the Federal Trade Commission (FTC) proposed a rule condemning non-competes as a violation of anti-trust law and prohibiting noncompetes nationwide, with a few very

For many years, employees and employers have engaged in a staring contest when it comes to non-competition agreements, or “non-competes.”

limited exceptions. The proposed FTC rule would apply retroactively to existing agreements and would apply to “de facto non-competes,” including overly broad nonsolicitation agreements and non-disclosure agreements. If implemented, the proposed FTC rule would be a sweeping change that would invalidate an immeasurable number of currently valid non-compete agreements.

While the proposed FTC rule appears to have bipartisan and media support, there is a question as to whether the FTC has the constitutional authority to pass such a rule. If implemented, the proposed rule will likely be challenged on several theories, including the argument that the FTC’s rule-making authority is limited and does not include the authority to upend established state contract law.

THE NLRB GENERAL COUNSEL OPINION

Similarly, in May 2023, the National Labor Relations Board (NLRB) General Counsel issued a memorandum opining that non-competes, as a general proposition, violate the National Labor Relations Act because they “reasonably tend to chill employees” or stop them entirely from exercising their rights to organize for the purpose of collective bargaining. While the memorandum makes no change to the law, it is significant because it shows that the NLRB has its sights set on non-competes for NLRB litigation.

THE WORKFORCE MOBILITY ACT

The Workforce Mobility Act (WMA) is bipartisan federal legislation pending in Congress. If passed, it would prohibit noncompetes nationwide, with a few minimal exceptions. The WMA would specifically charge the FTC with the authority to enforce the ban and would provide a right of action in federal court against employers that impose non-competes on their employees. Unlike the proposed FTC rule, the WMA would not apply retroactively to existing agreements.

WHAT DOES THIS ALL MEAN?

In New Jersey, restrictive covenants, including non-competes, remain enforceable. However, consistent with the national trend, New Jersey courts are becoming less inclined to enforce non-competes without a very compelling and legitimate business interest that can only be protected through a non-compete. If there is an option that would impose less of a hardship on the employee, the court is likely to prefer that option.

The critical question that should be considered when entering into a noncompete is: what legitimate business interest are we looking to protect? For many CPA firms, that interest might be customer relationships or details of how the firm prices its services. If the goal is to create an agreement that will be enforceable after an employee separates from the firm, the employer should endeavor to narrowly tailor the restrictive covenant to address the specific protectable interest. In some situations, a non-solicitation agreement, or a non-disclosure agreement, may be sufficient, may provide more protection than a non-compete and may remain enforceable even if some of the aforementioned proposals become law.

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EMPLOYMENT LAW KNOWLEDGE HUB

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UNDERSTANDING NON-COMPETE AGREEMENTS

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John M. Losinger, J.D., is a member at Saiber LLC, where he advocates on behalf of businesses and individuals in connection with commercial disputes. He can be reached at jlosinger@saiber.com

The Role of Analytics in Improving Staffing Strategies

Human resources (HR) is a business operation where efficiency is imperative. Specifically, the process of employee recruitment and retention is simply too important to leave to chance. Whether a business unit manager needs the latest information on time and attendance to streamline their scheduling process or a quick payroll audit by the HR manager to address a problem, analytics help make data accessible to business leaders. Here are some ways to leverage HR analytics to improve the way businesses are run and increase efficiency:

y Recruiting. When a job candidate is brought on board but ends up not being right for the position, turnover can happen, and filling open positions becomes expensive and time-consuming. Recruiting analytics lets a company see where its best candidates come from and which profiles tend to succeed more often over the long term.

y Tracking time and attendance. With time and attendance analytics, companies can determine the most efficient patterns in employee scheduling to strategically manage the scheduling process, stay in compliance with company and legal requirements and even identify patterns of absenteeism.

y Streamlining the management of benefits. Consider the reporting needed during open enrollment. An analytics-driven reporting system makes it easy to see who is enrolled and where decisions are pending.

EMPLOYEE RETENTION

In a competitive job market, it is essential to focus on improving employee retention, so that one is not expending time and financial resources in the recruitment process. The following actions can help identify what’s needed to retain employees and how analytics can help improve employee retention efforts overall:

y Measure employee turnover. Many business owners and HR professionals use employee retention metrics to evaluate the quality of their hiring programs and overall health of their workforce. For example, if they regularly employ 20 workers and three resigned or were terminated during the first quarter, their employee retention rate would be (20-3) / 20 = 0.85 or 85%. This percentage can vary across different industries and in different parts of the country, so this benchmark is most valuable as an internal metric evaluated over time.

y Explain career development. Employees are more likely to stay at a job when they have a clear understanding of their individual career development path. It’s wise to help candidates understand where each position could lead.

y Work together. When it comes to addressing employee retention, businesses may fail to support one of the most important relationships that define a worker’s day-to-day experience: the interaction between managers and employees.

Establishing employee retention as an important metric can help give managers the incentive that they need to focus on retaining talent. Best practices include the following:

y Provide information to managers on why employee retention is important to the company, including the costs of replacing workers who leave.

y Make employee retention an explicit key performance indicator (KPI) for manager evaluations.

y Invest in basic management training on communication, goal setting and other important skills for managers who oversee other staff members.

y Make time in schedules to actively interact with employees. HR needs to consider timing when developing manager allocations, and they should periodically check-in with managers on areas where they can use support.

THE ROLE OF HR TECHNOLOGY

An effective retention strategy begins with recruiting the right employees. By leveraging the resources of human capital management software, it’s possible to target efforts on finding ideal candidates for specific positions and for the company culture. With today’s applicant tracking systems, it’s possible to:

y Develop job descriptions with input from all stakeholders.

y Set minimum screening criteria to focus on the most qualified applicants.

y Access data for the entire recruiting process from a single interface

With smoother operations, better screening tools and access to data, recruiters can attract a higher caliber of employees. Starting with the right employees makes it easier to increase employee retention beginning on day one.

Paychex offers highly impactful service and enhanced technology offerings within Paychex Flex, including the Paychex Employee Retention Tax Credit (ERTC) Service (paychex.com/ tax-services/employee-retention-tax-creditservices), Paychex Retention Insights (paychex. com/human-resources/hr-analytics), and enhancements to Paychex Flex Hiring and Onboarding (paychex.com/hiring) for a fully digital and paperless experience. Paychex is an NJCPA member benefit provider (njcpa.org/ benefits).

Preparing Your Firm for Your Death or Disability

BY EDWARD MENDLOWITZ, CPA, WITHUM

handle the load, while a much larger practice might not have staff who would maintain the proper interest level for your clients.

Select someone you know. Understand how they practice, the type of clients they have and how well they relate to their clients.

HOW TO PREPARE

Prior to approaching a prospective PCA partner, prepare the following:

CONSEQUENCES OF NOT HAVING A PCA

Not convinced yet? Consider these consequences of not having a PCA in place:

y A legacy of dissipating value

y Wasted time by your widow, widower or family representative

y Unnecessary legal expenses

y Possible unnecessary valuation costs

Many CPAs who practice in a partnership have a buy-sell agreement in the event they die prematurely or become unexpectedly disabled. Since sole practitioners cannot have such an arrangement, they should have a practice continuation agreement (PCA). Too many practitioners die without any arrangements, leaving their families bewildered and unable to find appropriate assistance with disposing of the deceased’s practice or finding someone to service the clients until the “temporary” disability is cleared up. They want an instant solution, which would easily have existed if the practitioner had a PCA. Here is how it works.

A PCA is an agreement by a practitioner with someone who would acquire their practice upon their death or would service their clients until they recover from a temporary disability, with the price and payment terms agreed to. It has no effect under any other circumstances and does not restrict the practitioner from doing anything they want with their practice. It does not create a partnership or in any other way encumber the way the practice is run. Any arrangements to dispose of your practice, retire or semi-retire can be made and it would supersede or vitiate the PCA.

FINDING A PCA PARTNER

Choose a firm three to four times larger than your practice so that it can absorb your practice without too much difficulty. A smaller practice might not be able to

y A brief fact sheet about your practice

y A list of your clients with contact people, the type of services you provide and the timing, the fee arrangement, your passwords, how to gain access to your clients’ files and how backup is maintained

y A list of your employees, length of service, capabilities, salaries and bonus arrangements

y Information about your websites and software

These listings would not be provided to anyone, except for the fact sheet, until the event of your death or disability. Since this information will become outdated, it should be updated periodically. Put it in a secure location, and let your spouse or other family member know when and how to access it.

PAYMENT STRUCTURE

There are many ways to structure payment under a PCA. A common arrangement is to use a percentage of annual collections for a fixed period, such as 20 percent of collections for five years. There should be no guarantees and no down payments. If a client is lost, there would be no payment. If a fee is increased, the payment would be based on that. Payment for work on clients during a disability would be 20 percent of collections.

y Possible failure of heirs to agree, causing divisiveness and altercation

y Abandoned clients

y Inability for any buyer to properly understand your client service and fee arrangements and locate passwords, contracts, policies and leases

Death is inevitable. Disability is not. Both can occur unexpectedly, without warning or expectations. The few hours spent planning and executing a PCA need only be done once and then hopefully never used. Such an agreement assures an orderly, smooth transition that will provide substantial benefits to your practice.

Edward Mendlowitz, CPA, is emeritus partner at Withum. He is a member of the NJCPA and can be reached at emendlowitz@withum.com.

Common Misconceptions about Selling a Practice

BY SHERIF BOCTOR, CPA, ACCOUNTING PRACTICE SALES II, INC.

MISCONCEPTION 2

“The best buyer for an accounting practice is another accounting firm.”

In many instances, an existing firm is not the ideal buyer of a practice because it doesn’t have the time to take on another practice. In a typical sale situation, the seller is ready to retire. The buyer must be willing to assume the workload of an experienced owner as well as do all the extra things involved in a transition. A typical buying firm does not have such an individual available who can fill the shoes of the seller.

Sometimes a seller turns away a very motivated and capable buyer because, for one reason or another, the seller decides the buyer is not quite perfect. His or her misconception is that there are many buyers and that all buyers are equally motivated and equally willing to pay some known price. That misconception could be costly.

Selling an accounting practice is a once-in-a-lifetime experience for most practice owners. Since it is such a rare event, sellers need to be aware of some key misconceptions about the process.

MISCONCEPTION 1

“The seller needs to stay around for years to assist the buyer in the transition.”

Despite what most think when they consider selling their practice, extensive experience with countless practice sales has shown us that a shorter transition is much more effective for both parties.

It is also a common belief that the best scenario is for the seller to engage in extended and/or repeated meetings between the buyer and the clients. However, experienced buyers know that the tendency in such meetings is for the former owner and client to do all of the talking and for the buyer to be an outsider. Similarly, if the seller stays around the office, clients will want to talk to the seller rather than to the new buyer. However, if the buyer meets the clients without the seller, there will be a better chance for the buyer to get to know the clients and to establish good relationships.

This lack of time ties into the second reason why firms are sometimes not the best buyers for practices: Firms are often only marginally motivated to buy a practice. Of course, all firms are motivated if a seller offers generous terms and agrees to continue working at a reduced rate of pay. Compare this to a potential buyer who has several years of experience and has dreamed of owning a practice. That buyer brings to the table the willingness to devote much time and energy to taking over the workload.

MISCONCEPTION 3

“Accounting practices have some intrinsic value that all potential buyers recognize, and with which all agree.”

If one is selling a gallon of gasoline, this might be true. But most people need gasoline, purchase it regularly and have a good idea of what it costs. This is not true of accounting practices. Many people in the world would not purchase a practice if it were offered to them for a dollar. In a metropolitan area of millions, there might only be a couple hundred potential buyers for a particular practice. In other areas, there might be considerably less.

If a practice is offered at a certain price, all potential buyers might step up to the plate with check in hand. On the other hand, it could be priced at a level where only one or two would agree to purchase.

This same misconception comes into play when sellers think that the only trick is finding a buyer. Practice owners routinely say, “I have someone interested in buying my practice.” The implication is that finding a buyer is the hard part. The object in selling a practice (unlike in selling gasoline) is to first locate all potential buyers for the practice and, from that group, determine the top five or 10 percent in terms of motivation and ability. It is from this group one must find the buyer if one is interested in finding the true value of the firm.

Sherif Boctor, CPA, is the president of Accounting Practice Sales II, Inc. (APS), a national sales and marketing firm specializing in the sales and acquisitions of CPA, accounting, audit and related practices. He can be reached at sherif@aps.net

APS Holmes Group, a brokerage group in New Jersey, specializes in accounting practice sales (APS) and has over 50 years of combined experience in both practice sales and acquisitions. Its members have diverse backgrounds in accounting, sales and finance to assist in every part of the sales process from business valuation and marketing to closing and transition. Contact Accounting Practice Sales at info@aps.net

An Accountant’s Vital Role in Resolving a Divorce

BY TANYA N. HELFAND, ESQ., SCHENCK PRICE SMITH & KING

Every divorce case can benefit from the input of an accountant, from very simple cases to the most complex matters. It is the breakup of a “partnership.”

Certainly, divorces cause enormous emotional upheaval; however, a good portion of any case will be focused on the numbers. Most, if not all, divorce agreements prepared by divorce counsel contain language that the parties have been advised to review the agreement with an accountant and the clients are not relying on the divorce attorney for tax advice.

Divorce lawyers are often not as well versed in the tax ramifications as accountants. Alimony and “equitable distribution” are not mere math problems. The most successful arguments in court are supported by hard financial evidence, such as tax returns, pay stubs and credit card bills, which will be organized and analyzed by accountants. For higher-net-worth cases, or those with financial complexities, there is a need to hire forensic accountants.

THE ACCOUNTANT’S ROLE

How can the family accountant help parties conserve resources and help the client move forward to a better future?

y Provide copies of tax returns and any adjustments promptly to either party regardless of whether the CPA primarily dealt with one party. The CPA has a duty to immediately cooperate with both parties.

y Provide tax projections, if requested, as the parties will be filing separately going forward.

y Perform state tax calculations on alimony. Although federal law changed, eliminating tax consequences, many states, including New Jersey, still provide for the deductibility and taxation of alimony.

y Determine who can/should claim dependency exemptions, child tax credit and Earned Income Tax Credit (EITC) for any children.

y Estimate capital gains on homes or investments, whether recently sold or still owned and to be sold in the future. If one party is considering keeping a home, the exemption can change significantly from joint to individual.

y Review the divorce agreement for tax issues or creative planning if requested.

Sometimes, spouses refuse to file jointly because of cash/fraud issues or simply refuse to file jointly “to be difficult.” The accountant can prepare a return based on filing jointly and a second one based on filing separately to show the impact to the obstructive spouse for possible reimbursement. (See Bursztyn v. Bursztyn, 379 N.J. Super. 385 (App. Div. 2005))

In complex divorces, a forensic accountant is often hired to prepare reports and testify at trial. I interviewed a well-known forensic accountant, Ilan Hirschfeld, CPA, of Marcum LLP, for this article to further discuss how the family accountant can help the divorce process by providing clear and transparent financial information. First, Mr. Hirschfeld made it clear that forensic accountants do not get involved with custody. His job is to look at the divorce as a business transaction: How are assets valued and how is cash flow determined? The forensic accountant performs due diligence, considers liquidity and looks at past performance to estimate future cash flow to calculate support and business values. Cash flow should not be confused with taxable income. The forensic accountant can also trace assets and help calculate the marital values of restricted stock units (RSUs) and options.

Mr. Hirschfeld explained that the family accountant can play a crucial role in the process, providing data promptly, including, but not limited to, tax returns (both business and personal) and year-end journal entries, along with general ledgers or Quickbooks files used to prepare tax returns. A trained forensic accountant can help establish and negotiate normalized earnings and the value of businesses and not waste the lawyer’s time and the parties’ money to get documents. The more delays or obstruction, the greater the emotional and financial cost to both sides.

Tanya N. Helfand, Esq., is the chair of the family law department at Schenck Price Smith & King. She can be reached at thelfand@spsk.com

Green and Red Lights for Career Success

BY KATHLEEN HOFFELDER, NJCPA SENIOR CONTENT EDITOR

To Matthew Mojica, CPA, financial reporting specialist at Prudential and panelist at the session, forming good relationships with coworkers and managers helps to “not let the generational divide cause separation.” He suggests understanding what’s important to each group is key to getting along. For example, he added, young professionals are in favor of standing desks and flex time.

Wilson maintained that simple red-light situations can also be easily turned into green-light opportunities if workers are not afraid to ask when they don’t know something. It’s also important to show initiative on the job, she said. Even if a manager’s first response is “no,” it could be a “yes” later on.

Finding a mentor, selecting a career path and passing the CPA Exam are just some of the opportunities and challenges facing the bright young professionals filling the hallways of accounting practices and organizations today. During a panel presentation at the NJCPA Convention & Expo in June, emerging leaders discussed what they consider “green lights” for success and what they labelled “red lights” or issues to overcome.

GREEN LIGHTS

Some great chances for learning often go unnoticed or are underappreciated in organizations today, which is why Joseph Hunt, CPA, PSA, assurance manager at CliftonLarsonAllen and moderator of the panel, said it’s important to know how to “shadow” other professionals to get a leg up on learning. Young professionals, he said, need to ask for those opportunities even if they are not readily available. “It makes a big difference, and it helps bridge the generational gap.”

Panelist Lexi B. Wilson, CPA, manager at Bowman & Company LLP, added that working with other generations increases those learning opportunities as well as enhances the culture in the office. “At the end of the day, we all have to work out a way to work together,” she said, noting that the younger generations “need to step up.” While Baby Boomers are already many of the mentors, she added that younger professionals need to make themselves heard, and similarly, Baby Boomers need to listen to new ideas presented.

As Hunt reminds, “everyone wants to have a purpose.” He said it’s important to know the “whys” of doing things in the office, and older professionals need to be aware that younger generations will be asking lots of questions.

Indeed, young accountants today value articulating the firm’s strategy from the top of the organization down to first-line staff on a consistent basis so that everyone can see how their role contributes to the overall strategy, according to a November 2022 Thomson Reuters survey.

Learning, however, is also a two-way street, particularly among different generations. According to panelist Jenna Sanfilippo, CPA, MSA, a senior tax accountant at WilkinGuttenplan, younger professionals can still be mentors, even early on in their careers. She said it can be comforting to hear, “I just learned it this month.” This way, a manager “goes down to their level” to show how they can relate.

RED AND YELLOW LIGHTS

From overcoming confidence issues to passing the CPA Exam, emerging leaders in the accounting profession have a lot of red or amber lights to attempt to slow them down, but panelists were quick to find ways around them.

Decidedly, one of the toughest hurdles or “red lights” to get past is studying for the CPA Exam while working 40-, 50- or 60-hour workweeks. Hunt recommended employees inform their managers about study times to lock it in on their schedules — this helps both the manager in scheduling projects and the employee in sticking to their study routine.

Finding and seizing those learning opportunities can make or break a career. After all, Mojica noted that there’s so much learning that occurs on the job. “We’re the magicians of the business world.”

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MANAGING UP THE LADDER

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Are You a Rock Star CPA in NJ?

OUR ROCK STAR CPA REQUIREMENTS:

The desire to build the #1 Cannabis firm in New Jersey

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leads and help you price and close them to get your firm started quickly. Our success depends on your success so we are only looking for the best of the best.

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The Soft Skills of Management: Being Human Through Using Humor

BY JAN McINNIS, THE WORK LADY

"I might bomb,” or “I’m not naturally funny” are two reasons I hear a lot from people as to why they’re not using humor in business. But using humor at work isn’t about writing jokes and being a comedian; it’s another tool you can use to do your job. It’s one of the “soft” skills that include communication, teamwork and creativity. Aside from people wanting to work with someone who uses humor, there are many benefits:

y Humor connects people instantly. You know that “aha” moment you feel when someone else “gets” your humor? That means you've just found some common ground without spending 20 minutes on small talk about their kid’s school. Making this quick connection opens the lines of communication easily with clients, potential clients, coworkers and staff.

y Humor gets people to listen and makes your message memorable. Experts say that if you want people to retain information, you must connect it to an emotion, like laughter. People will take time for something (or someone) funny, and they’ll remember it and share it. Businesses spend millions on funny Super Bowl ads because humor works. You can use it, too, for free!

y Humor defuses tension. Humor can help calm people down and change the energy in the environment. Is your staff stressed? A little humor can quickly get them from ruffled to relaxed.

THREE QUICK WAYS TO FIND HUMOR

y Pull out the contradictions. Humor is about irony, so look around and start noticing the ironies and contradictions in your environment. A sign in the bathroom at my last company read “Low-flush toilets — please flush

twice.” Someone missed the point about water conservation! Point out these ironies for some quick humor.

y Ask funnier questions. The next time you’re networking, instead of asking someone their name and title (all the stuff on their badge!), sprinkle in a few fun questions to get more memorable information which will spark a funnier conversation. Saying you work at the bank is good, but saying “yeah, this beats my first job after college telemarketing sides of beef” is funnier. It piques people’s interest, encourages them to connect with their funny job and gives you an opportunity to inject more humor. Your chat will be more interesting and memorable. (By the way, yes, I telemarketed sides of beef, and yes, I have some humor about it.)

y Do passive humor. If you don’t want to say something funny, then show them. One quick way is to change the meaning of your business acronyms. No one remembers what they mean anyway, so add in a few funny definitions to get people laughing — they may even read your entire email. RFP — Request for Proposal becomes Really Frustrating Paperwork, and HMO — Health Maintenance Organization becomes Having Many Oops. You can also add passive humor in your bio or the “about us” page on your website. Noting that “John played high school football” is boring. Change it to “John was a great high school football player, which influenced his career. After being repeatedly tackled by 300-pound guys, he opted for a career in accounting,” shows your sense of humor.

BONUS TIPS

y Start small! Comedians start out doing three minutes at an open mic night and build up to 60 minutes. You can

start small, too, by just bringing up one funny thing you noticed or asking one client a funnier question.

y Practice. No, you don’t have to stand in front of the mirror telling jokes, but humor is a muscle, so exercise it. Start actively looking for the ironies now, and soon they’ll pop out at you automatically. Then, when you want to use humor, you'll be able to find it quickly.

Oh, and are you worried about bombing? Don’t be! Most people in business don’t get mad if the humor isn’t killer because they don’t expect you to be a comedian. They’re just appreciative of you trying to lighten the situation.

Remember, your business may not be funny, but getting people to listen to your message can be!

Jan McInnis is a keynote speaker, author, comedian and comedy writer who shows businesses how to use humor. She can be reached at Jan@TheWorkLady.com

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Not Your Keys, Not Your Coins — Lessons Learned from the FTX Bankruptcy

BY MELISSA A. DARDANI, CPA, CFE, MAcc, MD ADVISORY SERVICES

As the use of digital assets, such as cryptocurrencies and digital securities, continues to grow, the role of accountants in managing and safeguarding these assets is becoming increasingly important. One of the key elements in managing digital assets is the use of private keys, which are critical for ensuring the security and integrity of these assets.

Private keys are generated using cryptographic algorithms that create a unique, random sequence of characters and are used to control access to digital assets. In the case of cryptocurrencies, the private key is generated when a user creates a new wallet on a blockchain or distributed ledger.

One of the key benefits of using private keys for digital assets is that they provide a high level of security. The use of cryptographic algorithms makes it extremely difficult to crack the private keys. In addition to providing security, private keys also play a critical role in ensuring the integrity of digital assets. Private keys are used to create digital signatures that verify the authenticity and integrity of digital assets, prevent fraud and ensure that transactions are not tampered with or altered in any way.

LESSONS LEARNED FROM THE FTX BANKRUPTCY

FTX was a cryptocurrency exchange and hedge fund run by the now-disgraced Sam Bankman-Fried (SBF) that collapsed in November 2022. In his declaration in support of the Chapter 11 bankruptcy petition, interim CEO John J. Ray III, who replaced SBF, claimed that in more than 40 years of legal and restructuring experience, he had never seen such a complete failure of corporate controls and absence of trustworthy financial information as occurred at FTX. He cited specifics, including compromised systems integrity and the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals.

The party with possession of the private keys is the effective owner of the digital assets. When a crypto owner holds their digital asset on an exchange such as FTX, opportunity exists for the exchange to transfer or sell the digital assets without the permission or knowledge of the depositor. Of important note from his declaration is Mr. Ray’s reference to the unsecured account used to access private keys. According to Mr. Ray, “unacceptable management practices included the use of an unsecured group email account as the root user to access confidential private keys and critically sensitive data for the FTX Group companies around the world, the absence of daily reconciliation of positions on the blockchain, [and] the use of software to conceal the misuse of customer funds.”

CONSIDERATIONS FOR CPA s

The use of private keys for digital assets can also help to improve transparency and accountability. Digital assets that are protected by private keys are recorded on a public ledger that is accessible to anyone. This means that transactions can be easily tracked and audited, which can help to improve accountability and prevent fraud. However, the use of private keys for digital assets also presents some unique challenges for accountants. One of the key considerations is ensuring that private keys are properly safeguarded and managed. Private keys are extremely valuable; if they fall into the wrong hands, they can be used to steal or manipulate digital assets, as seen in the case of FTX. Accountants should advise their clients of the risk associated with digital asset ownership rights and stress the importance of safeguarding the keys to the kingdom.

For businesses and individuals that do not hold their digital assets on an exchange and therefore have possession of their own private keys, another challenge is the need to ensure that private keys are properly managed over time. Private keys can be lost

or forgotten, resulting in the permanent loss of digital assets. As a result, accountants must advise stakeholders to ensure private keys are properly backed up and that they are accessible when needed.

Digital assets are becoming increasingly relevant for many businesses, and their value can often be significant. Therefore, the security and integrity of these assets must be a top priority for owners and management. Auditors and advisors must consider private key security when conducting their risk management evaluation. Private keys must be kept secure and only shared with trusted parties when absolutely necessary. It is also important to have a backup of the private keys stored in a secure location to prevent loss due to technical failures or human error. By doing so, owners can maintain complete control and ownership over their digital assets and minimize the risk of loss or theft.

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Melissa A. Dardani, CPA, CFE, MAcc, is founder of MD Advisory Services. She is a member of the NJCPA Emerging Technologies Interest Group and several other interest groups. She can be reached at melissa.dardani@mdas.cpa.

Utilizing ChatGPT as a Tax Assistance Tool: A Practical Guide

BY SHENEYA WILSON, MS, MBA, CPA, FOLA FINANCIAL LLC

of a client’s investment property sale and be able to provide a proper response to the client’s inquiry.

2. Prompt: Kevin enters the following prompt into ChatGPT: What are some questions a tax accountant should ask as it relates to a client looking to gain an understanding of the tax implications of an investment property sale?

ChatGPT-4 Output (top 5):

• What was the purchase price of the investment property and when was it acquired?

Questioning whether you need to adopt artificial intelligence (AI) in your tax practice today is like an accountant 20 years ago deciding whether to use tax preparation software or continue to prepare paper tax returns. Thus, putting AI tools into practice should be something that practitioners embrace.

WHAT IS CHATGPT?

Think Google, with a human-like consciousness — a search engine with the ability to put information into context and make it more useful. Developed by OpenAI, ChatGPT (chat.openai.com) is an AI-powered language model trained on an extensive dataset, enabling it to comprehend and respond to a wide array of queries.

HOW TO USE CHATGPT

Think of ChatGPT as your really smart best friend of whom you can ask any question. The more time you spend interacting and communicating with this friend, the better the conversations usually are and the better advice you’ll receive.

Utilizing ChatGPT can be broken into the following four steps:

1. Define your objective. Clearly state what you want to achieve by using ChatGPT, such as getting answers to questions or solving specific problems.

2. Provide clear and specific prompts. Ask ChatGPT clear and specific questions or provide detailed instructions to get accurate and relevant responses.

3. Assess quality and evaluate accuracy. Check the responses from ChatGPT to ensure they are reliable and align with what you know or have learned.

4. Iterate to customize output as needed. Make adjustments to your questions or prompts and try different approaches to get better results from ChatGPT.

Now let’s apply these steps in practice.

CHATGPT AS A TAX ASSISTANCE TOOL

Here’s an example scenario: Kevin, a tax practitioner, has a client who wants to understand the tax implications of the sale of an investment property while in the process of filing his tax returns with Kevin’s firm. Kevin has no prior experience working with this type of client transaction and decides to proactively seek advice from ChatGPT. He walks through the four-step process:

1. Objective: His objective is to gain relevant knowledge of the tax implications

• Have there been any improvements or renovations made to the property during the ownership period?

• What is the selling price of the property and when was it sold?

• Are there any outstanding mortgages or loans on the property?

• Did the client use the property for personal purposes, such as a vacation home, in addition to rental purposes?

3. Evaluation: Kevin evaluates the output to determine whether these questions are relevant to his objective. Many of them are, so he decides to include them as discussion points during his preparation meeting with the client. Though this response was good, it doesn’t really meet all of his objectives. He enters the following prompt to continue his chat: What are some of the common tax implications for a client who sold an investment property during the tax year. Please provide the relevant IRC code for reference.

ChatGPT-4 Output (top 3):

• Capital Gains Tax: The client may be subject to capital gains tax on

the profit made from the sale of the property. The specific tax rate depends on various factors, such as the client’s income level and how long they held the property. Relevant IRC code: Section 1221.

• Depreciation Recapture: If the client previously claimed depreciation deductions for the property, a portion of the gain may be subject to depreciation recapture tax at a higher rate. Relevant IRC code: Section 1250.

• Net Investment Income Tax (NIIT): Depending on the client’s income and filing status, they may be liable for an additional 3.8% NIIT on their investment income, including capital gains from the sale of the property. Relevant IRC code: Section 1411.

4. Iteration: Kevin now has a clearer direction to begin researching the tax code and properly advising the client.

Kevin’s experience demonstrates how powerful and useful AI tools such as ChatGPT can be for tax practitioners and firm owners. However, it is important to remember that while ChatGPT can offer valuable assistance, professional expertise and judgment still remain crucial in interpreting and applying the information provided by the model — and this is great news for practitioners who seek to leverage technology to propel their success.

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ARTIFICIAL INTELLIGENCE KNOWLEDGE HUB njcpa.org/hub/ai

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CHATGPT FOR ACCOUNTANTS: 50+ USE CASES

Sept. 18, Oct. 16 and additional dates, Live Webcast

UNLEASH THE POWER OF AI: A CPA’s GUIDE TO CHATGPT njcpa.org/events

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JOIN THE EMERGING TECHNOLOGIES INTEREST GROUP njcpa.org/groups

Sheneya Wilson, MS, MBA, CPA, is the founder and CEO of FOLA Financial LLC. She can be reached at sheneyawilson@folafinancial.com.

Are Employment Litigation Expenses Deductible? Maybe.

BY WILLIAM ROTHROCK, CSSC, BRANT HICKEY

The deductibility of legal fees and settlement payments is derived from the nature of the claim, per a Supreme Court ruling in 1963. Subsequent updates to the Internal Revenue Code (IRC) have further narrowed the deductible nature of both payments. These changes affected both parties to the litigation. Examining the impact on the employer first provides a clearer picture of deductibility.

TAX RULINGS AND STATUTES

The Supreme Court ruling set the framework for all other IRS codes. For example, Internal Revenue Code §162(q) includes that using a non-disclosure clause in a release agreement for sexual harassment and sexual abuse precludes the deductibility of all related expenses. In comparison, a measure in the Tax Cuts and Jobs Act of 2017 concerns the restrictive nature of deductible expenses affecting both the plaintiff (employee) and the defense (employer) in equal measure.

The Tax Court of the Fifth Circuit took the view that the company could not deduct litigation expenses stemming from non-profit-seeking activity. Two major obstacles to the deductibility of litigation expense derive from the nature of the litigation and the added barrier of the release language requested by the defense. Litigation derived from non-business activity or using a non-disclosure clause in the release agreement eliminates the deductibility of litigation expense. Notably, cases of sexual harassment or sexual abuse often qualify for both.

The clearly defined threshold for employers regarding expense deductibility does not exist for employees who bring the claim as a plaintiff. The inclusion of Lines 24(h) and 24(i) of Part II, Adjustments to Income in 2021, made it easier to account for the expense but did little to clarify what, if anything, should be placed as such and whether the corresponding income was includable on the client’s 1040.

Exploring IRC §104a, IRC 62€(18), IRC 162(q), plus other sections with their corresponding private letter rulings, exceeds the scope of this article. However, some straightforward rules do exist that can help in guiding clients. Consider that IRC §104 represents the apex of the decision tree for employees. The 26 U.S. Code § 104, Compensation for Injuries or Sickness, eliminates the inclusion of settlements from ordinary income for the employee. The fee paid to the attorney reduces the settlement received by the employee or injured party. The settlement does not constitute income per the IRS if bodily injury occurred.

DEFINITION OF INJURY

What constitutes an injury? Unfortunately, the very definition of injury changes almost monthly. Injuries with a direct impact on the body seem easy to define. However, post-traumatic stress disorder, sexual abuse and rape provide more complex definitions of injury. These kinds of events often require injured persons or employees to respond to uncomfortable questions to define the taxability requirements of the litigation. The critical thing to remember is that injury can equate to a physical manifestation or penetration event on the body.

National Structured Settlement Trade Association (NSSTA) members have addressed these problematic questions since 1985. For example, what if a case falls outside IRC §104, such as sexual harassment? Congress enacted an above-the-line deduction for attorney fees in 2005. As a result of Congress’s action, the plaintiff pays income tax only on the net settlement received. However, 100% of the net settlement taxed in one year can be a harsh tax bill.

MITIGATING THE TAX IMPACT

Avenues exist to mitigate the taxation impact of a settlement. The original product created for IRC §104 cases can be utilized

on a non-qualified basis. Any form of unlawful discrimination, including those in the Civil Rights Act of 1964, would qualify for this tax treatment. A gray area emerges even further for those who handle plaintiff litigation cases that derive from the definition of “civil rights” or “injury.” Professionals in this position should rely on the legal and accounting teams at their insurance carrier to make that judgment.

The insurance carrier’s decision-making lines often shift when new information becomes available, but there are some simple guidelines. Consider the definitions for injury and civil rights. Injury can be stated straightforwardly as physical damage or discernable alteration to the body or body chemistry. Similarly, civil rights can be interpreted as any right humans would wish to possess. Some prefer the broadest interpretation of the term: “human rights.” Whether a CPA represents the employee or employer, the nature of the case, particularly regarding how an injury is defined, and the resulting agreement are essential in determining the tax treatment.

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Sept. 26, Oct. 31 and additional dates, Live Webcast

TAXATION OF JUDGEMENTS AND SETTLEMENTS

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William Rothrock, CSSC, is a settlement consultant at Brant Hickey. He can be reached at wrothrock@ branthickey.com

Useful AI and Automation Tools for Accountants

BY JEFFREY CHRISTAKOS, CPA/PFS, MBA, CFP, WESTFIELD WEALTH MANAGEMENT, LLC, AND BENJAMIN M. LOWE, LEBETA TECH, LLC

Artificial intelligence (AI) has emerged as a transformative force in various industries, revolutionizing the way tasks are performed and reshaping job roles, including the field of accounting. The use of accounting software and tools has already automated many processes such as data entry, reconciliation and financial statement generation. As AI technologies continue to advance, accountants must adapt to the changing landscape to remain relevant and excel in their profession.

Several major accounting firms have already shifted towards AI and heavier use of technology to enhance their capabilities to serve their clients. PwC recently announced that it will spend $1 billion in the next three years on AI capabilities to upskill their workforce and processes to help their clients reinvent their businesses, generate richer insights, boost productivity and develop new products and services.

KPMG is using Mindbridge’s advanced AI technology to enhance audit quality and provide deeper organizational insights by providing auditors the ability to detect unexpected or high-risk transactions in advance, which will lead to more transparent, visible and explainable audits.

Deloitte has launched the Deloitte AI Academy to provide an educational ecosystem between academia, technology companies, corporate learning providers, Deloitte AI specialists, career development and talent experience programs. This will provide a hands-on, immersive bootcamp for their clients.

Following are examples of AI and automation software impacting the accounting field:

y Robotic process automation (RPA). RPA can automate data entry, report generation, reconciliation and other routine processes. RPA software such as UiPath (uipath.com), Automation Anywhere (automationanywhere.com) and Blue Prism (blueprism.com) automates repetitive and rules-based tasks, allowing accountants to focus on higher-value activities.

y Natural language processing (NLP) and machine learning (ML). NLP and ML technologies are used in various software applications to analyze and interpret text or speech. They can be leveraged for tasks such as extracting information from financial documents, understanding and responding to client inquiries, or generating narratives for financial reports. Examples include Deloitte’s Audit Command Language, BioBERT for biomedical language representation and FinBERT which contains financial data.

y Data analytics and business intelligence (BI) tools. AI-powered data analytics and BI tools enable accountants to process large volumes of financial data, identify trends, perform predictive analysis and generate meaningful insights. Popular solutions include Tableau (tableau.com), Power BI ( powerbi. microsoft.com) and QlikView (qlik.com).

y Audit tools. Audit software solutions, such as CaseWare IDEA (caseware.com), ACL Analytics (diligent.com) and TeamMate Analytics (wolterskluwer.com), incorporate AI capabilities to automate

audit procedures, analyze data for anomalies and facilitate risk assessment. These tools can enhance audit quality and efficiency.

y AI-enabled tax software. Tax software with AI capabilities helps accountants streamline tax compliance, calculations and reporting. Solutions like Thomson Reuters ONESOURCE (tax.thomsonreuters.com), Intuit ProConnect Tax Online ( proconnect. intuit.com) and Wolters Kluwer CCH Axcess Tax (wolterskluwer.com) utilize AI to automate tax-related processes, stay updated with changing regulations and optimize tax planning.

y Financial planning and budgeting software. AI-powered financial planning and budgeting software, such as Workday Adaptive Planning (workday.com), Anaplan (Anaplan.com) and Oracle Planning and Budgeting Cloud (oracle.com/performancemanagement/planning), leverage predictive analytics and scenario modeling to improve accuracy, enable real-time forecasting and facilitate collaborative planning processes.

y Fraud detection and risk management tools. Advanced fraud detection software, such as SAS Fraud Framework (sas.com) and ACL Analytics Exchange (highbond.com), applies advanced analytics and machine learning to identify anomalies, patterns of fraudulent activities and potential risks in financial data. These tools can help accountants proactively detect and mitigate fraud.

y Virtual assistants and chatbots. Virtual assistants like Xero Assistant (xero.com), Sage Intacct Smart Events (sage.com) and QuickBooks Assistant (quickbooks.intuit.com) employ advanced software technologies to provide conversational interfaces for accountants, assisting with queries, data retrieval and performing routine tasks.

The impact of AI and advanced software tools on accountants is undeniable, transforming their roles and responsibilities. Those who embrace lifelong learning and continuously update their skills will thrive in the evolving landscape, ensuring their relevance and success in the era of AI.

Footnote: Reference to any specific commercial product, process or service by trade name, trademark, manufacturer or otherwise, does not necessarily constitute or imply its endorsement, recommendation or favor.

Jeffrey Christakos CPA/PFS, MBA, CFP, is a senior investment advisor at Westfield Wealth Management, LLC, tax partner at Christakos & Co., PC and a term professor at Seton Hall University. He is president of the NJCPA Union County Chapter and can be reached at jeff@christakos.cpa. Benjamin M. Lowe is the managing partner of Lebeta Tech, LLC, and lecturer at Seton Hall University. He can be reached at benjamin.lowe@shu.edu.

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ARTIFICIAL INTELLIGENCE KNOWLEDGE HUB

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Sept. 6, Live Webcast, or Sept. 11, Webcast Replay RISE OF THE AICCOUNTANTSTM | HOW TO NAVIGATE THE AI FUTURE

Oct. 10, Nov. 30 and additional dates, Live Webcast

ARTIFICIAL INTELLIGENCE FOR ACCOUNTING AND FINANCE PROFESSIONALS

Nov. 10 and additional dates, Live Webcast

DEMYSTIFYING ARTIFICIAL INTELLIGENCE

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CPAs Divided Over New Jersey’s Economy

New Jersey’s economy is expected to stay about the same during the second half of the year compared to the first half, according to 44% of the 434 certified public accountants surveyed by the NJCPA in June. An equal number (44%) believed it would worsen. Only 12% believed it would improve.

The moderate stance is more positive than the same economic survey initiated by the NJCPA in 2022, which showed nearly 65% of CPAs believed New Jersey’s economy would worsen during the second half of the year and 28% of believed it would stay the same. Only 7% thought the state's economy would improve.

CHALLENGES

Inflation and the ability to find skilled personnel are two of the biggest challenges facing survey participants this year, at 66% and 53%, respectively, followed by state and federal policies that are unfriendly to businesses (40%) and rising interest rates (39%).

Last year, the survey showed similar top concerns, but inflation at that time was a heavier worry at 73%, followed by the availability of skilled personnel at 57%.

“Surveys like this one are a good way to gauge sentiment in all facets of society. It’s not surprising that inflation was more of a concern last year,” said Roosevelt D. Bowman, a senior investment strategist with Bernstein Private Wealth Management.

“As strategic advisors to their clients and organizations, CPAs are good sounding boards about the business environment. Our members always have a great read on what’s important for growth and sustaining business operations,” said Aiysha (AJ) Johnson, MA, IOM, CEO and executive director of the NJCPA.

NATIONAL PERSPECTIVE

On a broader scale, respondents this year were also more positive about the national economy. A higher majority (47%) believed the U.S. economy would stay the same during the second half of the year and 37% said it would worsen, while last year only 23% said it would stay the same and 69% said it would worsen. Going forward, respondents said the most helpful steps government could take to improve business conditions include implementing measures to ease inflation (73%) and reducing burdensome regulations (66%). Respondents recommended addressing the needs of small business, lessening the tax burdens of individuals, cutting government spending, reducing the pension burden and incentivizing people to work.

The survey, sponsored by Bernstein Private Wealth Management, was conducted to gauge CPAs’ outlook on the national and New Jersey economies midway through the year.

CPA License Renewal Time Is Approaching

Those looking to renew their active New Jersey CPA license as part of the three-year triennial, which began January 1, 2021, are reminded that they must complete any of their remaining continuing professional education (CPE) credits by Dec. 31.

As per the New Jersey State Board of Accountancy, any credits taken between Jan.1, 2021, and June 30, 2021, as part of the pandemic extension for the 2018-2020 cycle are not allowed to be included in this triennial. The Board has specifically stated that there is “no double-dipping” of credits by counting them both for the 2018-2020 and 2021-2023 cycles. A minimum of 20 credits per year is required, and a total of 120 CPE credits is needed for the three-year period.

Enter the CPA Exam Fee Lottery

To reduce the cost of becoming a CPA, the NJCPA is once again offering members a chance to win $750 towards studying for and taking the CPA Exam. The cost to take all four parts of the CPA Exam can be almost $1,000, while any review courses and/or books on top of that can bring the cost of preparing for such an endeavor to $3,000 to $4,000 on average.

The CPA Exam Fee Lottery, now in its fifth year, is available to all active NJCPA Student and Affiliate members. Ten winners will be selected at random to receive $750 each from the NJCPA Scholarship Fund.

To be eligible, applicants must not be receiving compensation from their employer in the form of payments/reimbursements for any Exam fees or review courses. Winners will need to provide a copy of their Notice to Schedule (NTS) issued by the National Association of State Boards of Accountancy (NASBA) CPA Exam Services.

Entries can be made at njcpa.org/cpaexamfeelottery from Oct 1 through Oct. 31. Winners will be notified in early November.

Licensees who have had an address change in the past three years should submit the change at newjersey.mylicense.com/ eGov/Login.aspx by Sept. 30. Renewal notices will be mailed to licensees’ current address of record 60 days prior to the Dec. 31 renewal deadline. One cannot renew their license until they receive the notice.

Those who need to earn additional CPE credits can search the NJCPA’s upcoming events and on-demand learning at njcpa. org/events. NJCPA members can use the CPE Tracker (njcpa.org/tracker) to record all CPE earned through the NJCPA and elsewhere.

MERGERS/ACQUISITIONS

Monmouth County retirement-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. Practice has large individual and small business tax preparation service. Cash collections in excess of $1,000,000. Reply in confidence at njcpa.org/classifieds.

Matthews, Panariello P.C., a full service Bergen County firm located in Paramus, is looking to merge or acquire firms, sole practitioners, or accounts (audits, reviews, compilations and tax preparation and compliance services). We are a peer reviewed firm with a strong track record of client retention. We have been successful in prior acquisitions; let’s talk. Visit our website at www.mpcpas.com To confidentially discuss email Peter at pmanetta@mpcpas.com.

Whitman Transition Advisors has has been helping CPA firms with their M&A needs since 2003. We are working with several new buyers in the marketplace that are paying cash up front, regardless of firm size. If your revenues exceed $1.50MM annually then we should talk today! To confidentially discuss this opportunity, please email us at pw@whitmantransition.com

Monmouth County CPA practice for sale. Approximately $750,000 annual revenue. Individual, business and trust income tax, including year-round advisement for high income clientele. Also write up and consulting services for solid year round income. Excellent growth opportunities within existing client base. No audits or reviews. The practice has a very strong fee structure. Owner will stay on for transition and is available to work. Reply in confidence at njcpa.org/classifieds

PROFESSIONAL SERVICES

Quality Review for CPA firms: Audit, Review, Compilation, Employee Benefit Plans, Yellow Book, Revenue Recognition, Leases. Contact James M. Sausmer, CPA at 732-261-7710 or james.sausmer@ gmail.com.

Seize a merger/acquisition opportunity with benefits for you. We are looking for firms ranging from $300,000 to $5,000,000 eager to combine forces as we continue to grow across northern NJ, Westchester and the Hudson Valley region. Goldstein Lieberman & Company is ideally situated to service all types of industries. Visit www.glcpas.com; email me, Phillip Goldstein, CPA, Managing Partner, philg@glcpas.com; or call me at 800-839-5767 to have a confidential conversation.

Traphagen CPAs & Wealth Advisors, a well-established firm in Bergen County with diverse client base and credentialed support staff is seeking small firms and sole practitioners for acquisition or merger. We are looking for firms ranging in size from $300K to $700K. This is an opportunity to align with a quality peer- reviewed firm, while continuing to provide your clients with exceptional service. To confidentially discuss this opportunity please email us at carolynn@tfgllc.com.

Small firm with offices in Princeton and Metuchen looking to expand seeks purchase of practices. Our staff consists of 2 CPAs, one EA and support staff. Lets talk. Contact Joe Gormley CPA at 732-549-1116.

The Business and Accounting Side of Music

BY KATHLEEN HOFFELDER, NJCPA SENIOR CONTENT EDITOR

Jennifer L. Rosen, CPA, didn’t immediately set her sights on accounting or what it could lead to, nor did she expect to end up on the business and accounting side of music when she was playing the piano growing up in South Jersey. At that time, accounting was probably one of the furthest professions from her mind.

Jennifer and her older brother, Stephen, were introduced to music by their mother at an early age. Her brother, also a music enthusiast, eventually became an attorney who specializes in music. Jennifer performed in regional piano competitions throughout her childhood, driven around by her mother and father, and enjoys music so much she left at least one job to get back into it.

FOLLOWING THE NOTES

After obtaining both her Bachelor of Science degree in accounting and her M.B.A. in finance from American University, Jennifer started out in a traditional accounting job where she worked in auditing for a public accounting firm and then made the leap

to EMI Music as the publishing royalties manager. There, she managed the department responsible for the calculation and payment of foreign royalties to music publishers and songwriters.

After briefly leaving EMI to be an internal auditor for the sports and entertainment group at Aramark, the food services company, she returned to EMI — this time to EMI Music Publishing, feeling something was missing. There she spearheaded the team responsible for uncovering missing or misappropriated royalties that songwriters and producers are due, somewhat like forensic accounting. “It highlighted to me that the music part of it was key to me enjoying the number aspect of it,” she adds.

“At EMI, I was running the Infringement and Compliance unit. My job was to bring in money that otherwise wasn’t coming in — identify folks using music without a license, etc. My job was really investigative but on the financial end of it,” she explains. “There was something very satisfying about that full-circle approach, knowing

that songwriter is getting paid. We’re talking about hundreds of millions of dollars over my 15 years at EMI.”

In 2012, she joined Google Play Music, which was looking for someone who understood digital music licensing. “If they had an accounting background, it was considered even better,” she says, noting her CPA license was highly regarded. Later, she was also part of the team that sunset Google Play Music when Google Play and YouTube merged products in 2018. “At that time, we had two competing music services. It didn’t make sense to operate both,” she says.

Jennifer, now head of music publishing partnerships (North America) at YouTube, combines the best of both the business world and music. She manages YouTube’s relationships with music publishers who represent artists like Taylor Swift who writes many of her own songs. “I still talk to the folks I met back in the ’90s. The music business is very small in the grand scheme of things,” she adds.

The relationship part of the job has been key to her success. “At EMI, people had to like you to want to pay you and at YouTube, it’s critical in keeping the music available. So, if I’m calling, it’s essential the phone is answered; it’s a lot about building partnerships and relationships,” says Jennifer, who now resides in Wayne with her husband, Chad, and still enjoys playing the piano. “Even when I was doing the forensic accounting stuff, the relationship was the biggest piece of that,” she adds.

However, the most interesting part of her job is meeting famous singers and performers and hearing about their journeys as well as listening to live music. “I have met a lot of celebrities. Stevie Wonder and Sting were heros, and of course, being a Jersey Girl, meeting Jon Bon Jovi was epic,” she says. “For me, it was very cool to present Cyndi Lauper with her million-subscriber button. That’s an accounting function!”

◀ Jennifer Rosen (l) presents Cyndi Lauper with a million-subscriber button.

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