Magazine of the
New Jersey Society of Certified Public Accountants
The Cloud Should You Be in the Cloud?, p. 6 Cloud Problems: Preparing for Rain, p. 8 Private Versus Public Clouds, p. 10 What the Heck Is the Internet of Things?, p. 12
March • April 2015
March • April 2015
features
Ralph Albert Thomas, CGMA Chief Executive Officer & Executive Director rthomas@njcpa.org
Ellen C. McSherry, CGMA
Don Meyer
Director, Communications & Marketing dmeyer@njcpa.org
David Plaskow
Managing Editor dplaskow@njcpa.org
Jeanette L. Miller Editorial Assistant jmiller@njcpa.org
Janice M. Celeste Multimedia Specialist jceleste@njcpa.org
Editorial Advisory Board Daniel R. Arcuri, CPA Neil B. Becourtney, CPA Timothy A. Burley, CPA Salvatore A. Collemi, CPA Rebecca B. Fitzhugh, CPA Catherine Z. Horn, CPA Bernard M. Kiely, CPA Ryan J. Lapinski, CPA Gregory Levine, CPA Marcella LoCastro, CPA David A. Lopez, CPA Anthony F. Marone, CPA Marc D. Mintz, CPA Margaret Van Brunt, CPA
The New Jersey Society of Certified Public Accountants 425 Eagle Rock Avenue Roseland, NJ 07068-1723 973-226-4494 njcpa.org #njcpamag ReadNew NewJersey JerseyCPA Read CPA digital at digital at njscpa.org/newjerseycpa. njcpa.org/newjerseycpa.
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Should You Be in the Cloud? You may know the benefits and advantages of cloud computing. But have you ever asked yourself: Should I really be in the cloud?
Chief Operating Officer emcsherry@njcpa.org
8
Cloud Problems: Preparing for Rain Moving to the cloud lets you better serve clients and can add to your bottom line. But you must be prepared for problems that can turn a shower into a downpour.
10
Private Versus Public Clouds The level of data control is of the utmost importance when deciding on going to the cloud. Thankfully, you have some options.
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What the Heck Is the Internet of Things? A driverless train; a smoke detector that alerts the local firehouse. These are examples of the IoT. But how will this technology impact CPAs?
2
Close Up Tech Talk with the CEO of the NJ Tech Council
28 Tax Talk Sales Tax Due Diligence in M&A Engagements
4
News Briefs
29 Tech Center When You Need to Leave the Cloud
22 A&A Buzz Intermediate QuickBooks
31 Classifieds 23 Best Practices Avoid Struggling with a Non-Tech-Savvy Boss
35 Young Professionals Five Apps Guaranteed to Increase Your Productivity
24 Business & Industry Insights B Corporations Create CPA Opportunities
36 Legislative Views Transportation Trust Fund Running Out of Gas
25 Financial Planning New York’s Overhauled Estate Tax
37 Member Profile I’m Just Glad He’s on Our Side
26 Forensic File Why Not Create Your Own Software Valuation Model?
Society Pages CPE Offerings and Events, 32 Member Benefits, 32 Get Involved, 33 NJ State Board of Accountancy Report, 34
27 Small/Sole Practitioner Three Password Managers for Small Businesses
New Jersey CPA (ISSN 1534-6692) is published six times per year by the New Jersey Society of Certified Public Accountants, 425 Eagle Rock Avenue-Suite 100, Roseland, NJ 07068. Issue No. 50. Copyright © 2015 New Jersey Society of Certified Public Accountants. Annual membership dues includes $8 for a one-year subscription to New Jersey CPA magazine. Members may not deduct subscription price from dues. Periodicals postage paid at Roseland, NJ, and at additional mailing office. POSTMASTER: Send address changes to New Jersey CPA, 425 Eagle Rock Avenue, Suite 100, Roseland, NJ 07068-1723. The materials and information contained within New Jersey CPA are offered as information only and not as practice, financial, accounting, legal or other professional advice. The opinions expressed herein are those of the authors and not necessarily those of the New Jersey Society of CPAs. Publication of an advertisement in New Jersey CPA does not constitute an endorsement of the product or service by the New Jersey Society of CPAs.
CLOSE
up
Tech Talk with the CEO of the NJ Tech Council B y David Plaskow, N J C PA C ommu nications M anager
N
helping people and companies access resources, including capital.
technology companies who want to stay and grow here.
What’s your organization’s mission? Our goal is to help people and their organizations grow and succeed by supporting the tech, innovation and entrepreneurial ecosystems across the region. We do this by holding events, providing networking forums, advocating pro-technology policies in Washington, DC, and Trenton, and
How would you describe New Jersey’s technology landscape? New Jersey has a highly skilled workforce, great educational institutions and an excellent broadband/global fiber optic cable infrastructure. There are more than 350,000 people in NJ’s technology workforce. This represents 11 percent of the state’s workforce, yet accounts for 20 percent of its salaries. I think NJ will continue to attract global
How does New Jersey's higher education compare with other states in preparing technology professionals? It’s very competitive. We have great centers of learning that are expanding their degree programs. The challenge is to foster collaboration among universities, industry and the government to work more effectively. We’re not as good at that as some other states. We also need to keep a larger number of NJ college graduates in the state.
ew Jersey CPA recently chatted with the President and CEO of the NJ Tech Council (NJTC), James Barrood, on the state of the state with respect to technology.
2014/15 Board of Trustees Executive Committee President – Brad E. Muniz, CPA President-Elect – Frank R. Boutillette, CPA Secretary – Edward I. Guttenplan, CPA Treasurer – John M. Szczomak, CPA Immediate Past President – Gerard Abbattista, CPA CEO & Executive Director – R alph Albert Thomas, CGMA Trustees Sharon J. Bishop, CPA Leonard N. Brooks, CPA William A. Cadmus, CPA Joseph C. DiFalco, CPA Michael W. Gutwetter, CPA Robert P. Herman, CPA Sarah Krom, CPA Edward G. O’Connell, CPA William J. Ryan III, CPA Audrey J. Sherrick, CPA Lorenzo T. Vanore, CPA Joseph A. Zielinski, CPA
NEW JERSEY CPA • MARCH • APRIL 2015
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Is there a labor shortage of qualified technology professionals in New Jersey? Yes. This shortage exists at the state, federal and global levels. The NJTC is helping create more science, technology, engineering and math programs. We’re also trying to get more women to enter the technology field, and we support immigration reform to bring more talent into the workforce. We also advocate for the retraining of veterans, the unemployed and the underemployed. What’s a financial hot button issue for technology companies? R&D credits is a big one. They aren’t as robust here as they should be. Congress passed some extenders, but this is more a short-term approach versus long-term relief. We would also like to see more investment by government in early-stage companies. We realize there are budget constraints,
both at the state and federal levels. So, the NJTC has helped by forming a venture fund and an angel network. What percentage of businesses currently use cloud technology, and where will the adoption rate be in a few years? It’s currently between 50 and 60 percent. Within five years, cloud computing will be between 80 and 90 percent. How can companies improve information security in the cloud? There are comprehensive protocols one could follow. The main things I would recommend, however, are to read the fine print in any vendor agreement and have an attorney review it. It also helps to have a very good comfort level with your cloud vendor. How can a CPA firm better market its cloud computing services?
Highlight the fact that it will reduce a client’s costs and make doing business much more efficient and secure. Will it become easier for smaller companies to leverage cloud technology? Absolutely. For companies with a staff of 5-20, most are or have migrated to the cloud. The cloud has been a real boon to startups. It allows an entrepreneur to enter a market more cost effectively. He or she is no longer paying a vendor for significant hardware costs, which is a real gamechanger. To learn more about the New Jersey Technology Council, visit njtc.org. To read more of our interview with James Barrood, visit njcpa.org/ newjerseycpa/marapr15.
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1Cash Back rewards credited to your account will equal the total amount of eligible signature-based point-of-sale purchase transactions posted to and cleared through your Provident BusinessAdvantage Checking account each statement period multiplied by a factor of 0.25% (.0025). This Cash Back rewards factor is variable and may change at our discretion. To be eligible, qualifying point-of-sale signature-based transactions must be posted to and cleared through your Provident BusinessAdvantage Checking account as of the last business day of the statement period. Cash Back rewards will be redeemed, deposited and available on the first business day of the following statement period. 2 Free BusinessAdvantage Checking account includes 1,000 free transactions per statement period, with 12 statement periods per year. Free transactions include checks paid, deposited items, debits and credits. Fees will apply if the transaction limit is exceeded. 3 No minimum account balance required, however, you must deposit a minimum of $50 to open this account. 4 Does not include Cash Management accounts and services. Ask for details.
NEW JERSEY CPA • MARCH • APRIL 2015
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NEWS
briefs
AICPA Proposes Peer Review Transformation
security is also projected to become a larger revenue growth driver. D&A leaped to the top of the list with 51 percent in the 2014 survey, compared to 33 percent in 2013, and 19 percent two years ago. Of those citing mobile or cloud as a leading revenue driver, 53 percent say mobile revenues exceeded 2013 forecasts, compared to 26 percent in last year’s survey; and 46 percent say cloud revenues exceeded their 2013 forecasts, compared to 28 percent a year ago. While technology executives continue to believe that security is the biggest challenge to businesses adopting cloud, mobile or social media technologies and applications, 85 percent say their companies have not suffered a security breach in the past year. Still, almost two-thirds expect their companies to spend 1 to 5 percent of their revenues on information security over the next 12 months. Visit kpmg.com.
The American Institute of CPAs has issued a concept paper, “Evolving the CPA Profession’s Peer Review Program for the Future,” which pictures how the existing peer review program for firms’ accounting and auditing engagements could be transformed into a technology-driven practice-monitoring process. The concept’s primary goal is to increase public protection through enhanced accounting and auditing effectiveness by (1) highlighting potential quality risk indicators and detecting engagement issues earlier; (2) reviewing all firms that perform accounting, auditing and attestation engagements; and (3) monitoring all engagements subject to review. The concept would be powered by five activities: • Continuous analytical evaluation of engagement performance. • Human review when system-identified concerns are raised. • Involvement of external monitors. • Periodic inspection of system integrity. • Oversight of the system’s operating effectiveness.
OIC Post-Appeals Available Nationwide
The Internal Revenue Service (IRS) released a revenue procedure providing rules for the nationwide rollout of post-appeals mediation for Offer in Compromise (OIC) and Trust Fund Recovery Penalty (TFRP) cases. Post-appeals mediation is available to help resolve disputes after unsuccessful negotiations with the IRS Office of Appeals and is available for both factual and legal issues. The mediator’s role is to assist the parties in reaching their own agreement collaboratively, but the mediator does not have settlement authority over any issue. Appeals officers trained in mediation techniques will serve as mediators at no cost to taxpayers. Taxpayers also have the option of paying for a qualified non-IRS co-mediator. Taxpayers or the IRS Office of Appeals may request nonbinding mediation for eligible cases,
The AICPA expects that the practice-monitoring concept would be developed and implemented in multiple phases. Email comments to prsupport@ aicpa.org by June 15, 2015.
KPMG Survey: Cloud and Mobile Revenue Exceed Forecasts
According to KPMG’s annual Technology Industry Outlook survey, U.S. industry leaders expect data and analytics (D&A) to be the top revenue growth driver over the next two years. Mobile and cloud revenues are surging, and
Stockton College’s Purchase of the Showboat Casino by the Numbers 18,000,000
Dollar purchase price
1,400,000
Square feet of space
8,570
Total number of Stockton students
26
Property acreage NEW JERSEY CPA • MARCH • APRIL 2015
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but the taxpayer may decline the IRS Office of Appeal’s request for mediation. The goal is to complete the process within 90 days after the mediation request is approved. For more information, visit irs.gov/individuals/appealsmediation-programs.
Financial Triumvirate Releases New Strategic Plan The Financial Accounting Foundation, the Financial Accounting Standards Board and the Governmental Accounting Standards Board have developed a strategic plan that articulates their long-range vision and mission. The strategic plan affirms that the principal objective of developing the highest-quality financial accounting standards is to promote financial reporting that affords investors and other users of financial statements a clear window into the financial condition of public and private companies, nonprofits, and state and local governments. A second critical element of the mission is to foster better understanding among stakeholders as to how to apply and implement those standards. To see the strategic plan, visit accountingfoundation.org.
IRS and Treasury Select an Issue for Industry Issue Resolution Program
The IRS and the Treasury Department announced that they have accepted a request for guidance under the IRS’ Industry Issue Resolution (IIR) program regarding the capitalization rules as used by restaurants. The request seeks guidance on the capitalization rules, including the application of unit of property rules, refresh and remodel expenses, and rules for general maintenance and repair expenses. The objective of the IIR program is to resolve business tax issues common to significant numbers of taxpayers through new and improved guidance. For each issue selected, an IIR team of IRS and Treasury personnel gather relevant facts from taxpayers or other interested parties affected by the issue. At any time, business associations and taxpayers may submit tax issues that they believe could be resolved through the IIR program to iir@irs.gov. IIR selection criteria and
submission procedures are outlined in Revenue Procedure 2003-36, available at irs.gov.
njcpa.org Spotlight
2015 GAAP Financial Reporting Taxonomy Available
The Financial Accounting Standards Board (FASB) taxonomy is a list of computer-readable tags in XBRL that allows companies to tag precisely the thousands of pieces of financial data that are included in typical long-form financial statements and related footnote disclosures. The tags allow computers to automatically search for, assemble and process data so it can be readily accessed and analyzed by investors, analysts, journalists and regulators. The taxonomy contains updates for accounting standards and other improvements to the 2014 taxonomy currently used by Securities and Exchange Commission issuers. Visit fasb.org.
We’ve Simplified Your Event Search and Registration One of the most commonly used features on the njcpa.org website has been completely overhauled. We think you’ll find the process of searching for and registering for New Jersey Society of CPAs' events much easier thanks to the following upgrades: Friendly Filtering – In addition to being able to search by date, location, keyword and topic, you can now search events by CPE credit category, number of CPE credits and chapter. And, you don’t have to toggle between the search screen and the results screen. The filter options appear to the left of your search results, so you can add and remove filters and immediately see the results. Optimized Overview – The layout of the event details/overview page has been improved to help you see the pertinent details at a glance and let you dive deeper into additional content. Rapid Registration – Our main goal was to provide a faster, more streamlined checkout process. We’ve condensed the previous three-step checkout down to a single screen to save you valuable time. Mobile Matters – Whether you’re accessing the site from your desktop, laptop, tablet or phone, we’ve optimized the experience to fit your screen size.
Chronic Diseases Cost the State Billions
According to the NJ Department of Health’s November 2014 report, Improving and Protecting NJ’s Health, it costs New Jersey more than $39 billion annually due to chronic diseases such as cancer, diabetes, heart disease, hypertension and others. Of the $39 billion, $31.5 billion accounts for lost productivity, while $7.5 billion represents treatment expenditures. Perhaps more alarmingly, these numbers are expected to nearly triple by 2023. To read the entire report, visit state.nj.us/health.
IRS Launches International Data Exchange Service
The IRS announced the opening of the International Data Exchange Service (IDES) for enrollment. Financial institutions and host country tax authorities will use IDES to securely send their information reports on financial accounts held by U.S. persons to the IRS under the Foreign Account Tax Compliance Act or pursuant to the terms of an intergovernmental agreement, as applicable. The IDES is designed to provide a secure system of automated, standardized information exchanges among government tax authorities, which will enhance the IRS’ ability to detect hidden accounts and help ensure fairness in the tax system. Learn more at irs.gov.
Give it a try today at njcpa. org/events. Questions? Contact Rachael Bell at rbell@njcpa.org or 973-226-4494 x220.
NEW JERSEY CPA • MARCH • APRIL 2015
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Should You Be in the Cloud? You’ve undoubtedly heard by now from all sides regarding the benefits and advantages of cloud computing. But have you ever asked yourself: Should I really be in the cloud?
By James C. Bourke, CPA WithumSmith+Brown
As vendors that serviced our space began to deploy PC-based applications to meet our demands, we witnessed the migration of work from off-site data centers to within the walls of CPA firms. No area was more impacted than tax preparation. The days of CPA firms filling in grid sheets and waiting hours, or even days, to receive completed returns back from service providers were over. Soon after PCs began to permeate our profession, the Internet went through a similar growth period. Early versions of web browsers allowed CPAs to access information and become more productive. Vendors realized that the Internet’s expanding infrastructure allowed greater flexibility in application delivery. Even though the Internet did provide 24/7 access to unlimited information, many in the accounting profession were concerned about the security surrounding private and confidential client data. Most were concerned about where data was stored and what controls existed to ensure data couldn’t be compromised. Financial institutions, online retailers, credit card companies and others began to use the Internet as their primary channel to reach consumers and store their private information. With this came federal rules and regulations by nearly every state regarding the protection of confidential consumer data. It wasn’t long before our profession also began to embrace the Internet as NEW JERSEY CPA • MARCH • APRIL 2015
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a place to access information and store data. Enter cloud computing. This comes back to the original question. Should you be in the cloud? The answer: absolutely.
Leveling the Playing Field
Just as our profession embraced the PC as a necessary business tool, the cloud is no different. The Internet’s reach and power are undeniable. Tapping into the enormous network in the cloud allows sole practitioners to utilize the same platforms and applications as the world’s largest firms. The days of having a competitive technological advantage due to size are over.
Is the Cloud a More CostEffective Way of Doing Business?
The cloud is not a panacea for cutting costs. The cloud model, if done right, simply allocates those technology dollars differently. Instead of investing in an infrastructure with a life span of three to five years before it needs to be revamped, the cloud model takes those dollars and spreads them equally over the contract life with the cloud provider. The cloud model also allows business owners to pay as they go. As a company grows it has the ability to expand the number of seats or licenses that it needs, thus spending for the technology when needed, as opposed to building an infrastructure long in advance. When we discuss cloud computing, it helps to understand it in terms of what it means now. Cloud computing can generally be broken down as Software as a Service (SaaS), Platform as a Service (PaaS) or Infrastructure as a Service (IaaS). See Figure 1.
The Private Cloud
Many in our profession are taking advantage of one or more of these platforms. As the cloud model matures and as there is a heightened awareness surrounding high-profile security breaches and compromises of personal and confidential information, there is a growing interest in the “private cloud” model as a viable alternative. The private cloud model places the power of the cloud under the control of the firm. In a standard private cloud model, the firm dictates where the application and data are stored. The application and data are generally stored in a data center under the direct control or supervision of the firm.
Figure 1
Cloud Computing Today Type
Description
Example
Software as a Service (SaaS)
To utilize the service provider’s applications running on a cloud infrastructure.
Accounting/ERP – Intacct
Platform as a Service (PaaS)
To deploy onto the cloud infrastructure consumer-created or acquired applications created using programming languages and tools supported by the service provider.
Multi-use platform with integrated development environment – Netsuite
Infrastructure as a Service (IaaS)
To provision processing, storage, networks and other functional computing resources where the consumer is able to deploy and run arbitrary software.
Hosting and backup – Amazon Web Services
Going Forward
We’ve made tremendous progress in our profession thanks to the Internet and cloud computing. Most firms today utilize this model for tax preparation, engagement management, practice management, research, client collaboration and data management, including the storage of data as well as the delivery and receipt of data from clients and other third parties. The American Institute of CPAs and CPA.com are currently beta testing a cloud model for the dissemination of financial and tax information to clients and from those clients to interested third parties.
The cloud computing model has also given rise to firms offering integrated accounting services, online bill paying and outsourced CFO functions to clients. The cloud model is a perfect conduit for leveraging each of these services while generating additional revenue for firms. The use of cloud computing and the opportunities it presents will continue to evolve and grow. There is no better time than now for CPAs (at any size organization) to get up to speed on this technology. CPAs are perfectly positioned to leverage the power of the cloud to better serve clients and to more cost-effectively operate and grow their practices. NEW JERSEY CPA • MARCH • APRIL 2015
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See our cloud primer video at njcpa.org/newjerseycpa/ marapr15. James C. Bourke, CPA, CITP, CFF, CGMA, is a partner and the director of firm technology at WithumSmith+Brown. He has served as chair of the AICPA CITP Credential Committee and the AICPA Tech+ Conference. He has been named by Accounting Today as one of the “Top 100 Most Influential People in Accounting” and by CPA Practice Advisor as a “Top 25 Thought Leader in the Accounting Profession.” He is a past president of the New Jersey Society of CPAs. Contact him at jbourke@withum.com.
Cloud Problems: Preparing for Rain On the surface, cloud computing sounds like the solution to all of your computer needs and problems. With cloud computing, information technology is outsourced, so there is no need to worry about backups, hardware failures or having data on different computers. Unfortunately, every solution presents its own unique set of problems for which you may be unprepared. Hosting
By Peter J. Renzulli, CPA Bookkeepers2Go
You will first need to know how and where to store your data files before you move any of them to the cloud. There are three types of systems and files to consider during this initial phase. First, some data is dependent on software, such as QuickBooks and other specialized tax software. In these cases, you will need to have both the data and the software hosted together. The second system to consider is where to store Word and Excel-type files. The third system to consider is email. It is possible to host all three systems together. However, this approach is both expensive and risky. If your cloud computing system is down for any reason, you will not be able to access any of the data or files in the systems. As such, small firms should keep the three systems separate and hosted in the cloud by companies with expertise in each area. Cloud systems for email and for Word and Excel-type files have been in the cloud for a long time, and these systems are fairly robust. For our purposes, we’ll focus on the hosting for NEW JERSEY CPA • MARCH • APRIL 2015
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accounting and tax software because these systems are newer and not as robust.
Security
Security is the first issue you must address during your migration to the cloud. Specifically, you must determine who has access to which files. On the surface, this seems to be an easy task, but when clients have access to their data it can be very complicated and time consuming. This is especially true if you want to limit specific staff to specific clients. When security goes wrong it can go very wrong and everyone—you, your staff, clients, their employees—might
not be able to access anything while the system is down. Think of trying to use an umbrella in hurricane-force winds. A simple patch does not fix security. You must put the time and effort into testing the system prior to allowing your clients access to it in order to prevent any security leaks. The only way to test client security is when you initially test the client’s login to confirm that the proper security is in place.
Technical Issues
Cloud computing is not free from technical issues, and your clients will expect that you know how to resolve them. When it rains, it usually pours. Everyone in your cloud will be affected when issues occur. It is likely that your phone will ring off the hook when you are trying to talk with the support team at your hosting company. If the technical issues are, in fact, with the hosting company, you will be on hold as every one of their customers will be calling and waiting for assistance. Fortunately, technical issues emanating from the hosting company are few and far between. But when they happen, you will need to do crisis management to prevent your clients from losing faith in the cloud and, subsequently, you. Sometimes the technical issues will not be on your side, but rather on your client’s computer or with its Internet provider. Your clients will expect you to troubleshoot their issues and deal with their computers or Internet providers. Unfortunately, there are so many parts and different vendors when in the cloud that it is very difficult to prevent technical issues. You will need to be very specific with your clients as to what services you provide to them. You must also have a lot of empathy and patience with their frustrations when they try to deal with their computers’ technical issues, particularly when these are issues that they have never had to deal with previously.
Formal Agreements
as QuickBooks. As such, you will need to learn how to do cloud services sales in addition to accounting. If you are like most accountants and use simple engagement letters, a potential storm can hit you hard. The contracts needed to put your clients in the cloud can be lengthy and are drafted to shift all liability from the cloud provider to your client. Because the legal issues surrounding the cloud can be just as daunting as the technical ones, it is vital to have an attorney write your contracts to ensure that you are protected. Also, update them every time the cloud company makes a change to its terms of service and adjust your errors and omissions insurance to cover the new cloud services.
and add to your bottom line. But you need to be prepared for the hidden downsides and unique problems that come with a new service offering. Make sure that you understand exactly what services you will be receiving, your responsibilities and the responsibilities of your clients so that you are prepared to solve any issues that arise. During the conversion process, insist that you receive sales training from your cloud service provider so that you know and understand the talking points, features and benefits of the cloud. The cloud can provide a rainbow of happy customers and profits, but can also be a rainstorm of trouble if you are not prepared. Peter J. Renzulli, CPA, is with Bookkeepers2Go. He is a member of the New Jersey Society of CPAs. Contact him at renzulli@bookkeepers2go.com or 908-541-0101.
Today’s Forecast: Sunny
Moving to the cloud will put your accounting firm on the cutting edge, allow you to better serve your clients
New York State Tax Audit Representation and Advisory Services Residency Audits — Sales Tax — Corporation Tax
Brian Gordon, CPA State and Local Tax Director bgordon@st-cpas.com
Former NYS Dept. of Tax and Finance — District Audit Manager Frequent Speaker at Hudson and Bergen County Tax Seminars • Appeals • Offers in Compromise • Deferred Payment Plans
• Tax Planning • Multi-State Nexus Studies • Voluntary Disclosure
www.st-cpas.com Long Island Office: 350 Jericho Turnpike, Suite 1, Jericho, NY 11753 | Phone: 516-938-5219 New York City Office: 275 Madison Avenue, Suite 1711, New York, NY 10016 | Phone: 212-370-3743
Most CPAs want to be in the cloud to simplify their process of helping clients with their accounting on software such NEW JERSEY CPA • MARCH • APRIL 2015
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Private Versus Public Clouds When CPA firms evaluate going to the cloud, a glance at the horror stories of hackers and breaches of sensitive information can be all it takes to make those cotton puffs look more like dangerous storm clouds.
By Jeffrey A. Levy, CPA, and Thomas Hasard Wilkin & Guttenplan, P.C.
For some firms, giving up control over client data feels awkward and perhaps even irresponsible—an unacceptable price to pay regardless of how enticing the benefits might be. Fortunately, the cloud comes in many different forms, including private cloud options that provide many of the same benefits of public cloud offerings, while allowing firms to retain more control over their infrastructures. Let’s explore several different models of cloud computing, comparing the benefits and degree of control afforded by each. First, a brief word of caution: It’s important not to overstate the importance of retaining control over data. The desire for control often amounts to little more than fear of the unknown. Don’t be afraid to ask your cloud provider about security or for its Service Organization Control report. Cloud providers generally have the resources to implement security controls that are far more sophisticated than what a small firm could implement on its own. So before giving up the benefits of the cloud to retain control, be sure that there is a real need to do so. What are firms trying to achieve by moving to the cloud? Generally, we think of cloud benefits as being: • Available from anywhere over the Internet. • Highly available with minimal downtime. • Free from IT infrastructure maintenance and backups. NEW JERSEY CPA • MARCH • APRIL 2015
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• Easily scalable (i.e., easy to add users and storage capacity). • Financed as a subscription or operating expense with minimal capital expenditure. Let’s consider a hypothetical cloudbased document management system. As a Software as a Service (SaaS) solution, it achieves all of these benefits quite easily. However, what it doesn’t provide is control over where our data is stored, how it’s secured or how well the system performs. What other options do firms have when looking to retain some control? One option is to consider an Infrastructure as a Service (IaaS) solution instead of an SaaS product. With IaaS, the cloud provider is only responsible for delivering a virtual server with an operating system installed on it (e.g., Amazon’s Elastic Compute Cloud). It’s the firm’s responsibility to install the document management application it wants to use on the server. For some firms, this might be the same product used today, simply moved from an on-premise server to a cloud-based server. See how well this solution meets our list of cloud benefits (Figure 1). Although our cloud objectives may not be achieved as completely with the IaaS model, we do retain more control. We have the ability to choose which IaaS location stores our data, how the system will be configured to secure that data and how the system will be updated. We also gain comfort that if we decide to stop using this application we can easily download our data from the cloud. Even though the IaaS model does afford firms more control, like SaaS, it’s still considered a public cloud solution. That’s because your virtual
Figure 1
Infrastructure as a Service
Availability from anywhere over the Internet?
Yes, depending on the application.
Minimal downtime?
Yes, depending on how your solution is architected.
Freedom from IT maintenance?
Achieves freedom from hardware maintenance, but requires maintaining the software and backing up data.
Scalability?
Yes, server resources can be adjusted to accommodate growth.
Subscription pricing?
Yes.
Windows server runs on the same physical infrastructure as several other virtual machines for other companies. For firms whose need for control is even greater, there are private cloud options that may be worth considering. A private cloud is an arrangement where the physical server resources are dedicated solely to your firm, providing greater isolation from neighboring cloud users. The tradeoff in taking control of the physical computing resources is typically the loss of some scalability and uptime. Private clouds often involve a monthly or yearly commitment, and adjusting the resources provided can take some negotiating. Furthermore, high availability is not guaranteed by most private cloud platforms. If this is desired, the IT team building your solution on top of the private cloud platform must design the solution with this goal in mind.
One final private option for firms looking for control is co-location, meaning renting space in a data center and filling it with physical computing resources owned by the firm. The data center usually provides robust physical security, along with redundant power and Internet to help with high availability. The sacrifices here are responsibility for maintaining the physical servers and capital expenditures for purchasing equipment. However, for firms that expect to have fairly consistent needs over a period of years (i.e., scalability is not essential), purchasing the equipment can yield some cost savings over renting it. When deciding how much control you want, it’s important to remember that with control comes responsibility. Having control over how your servers are secured means you are responsible for securing them. For most firms, that NEW JERSEY CPA • MARCH • APRIL 2015
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means you will need an IT department or consultant to manage your cloud resources on your behalf. This begs the question: Is assigning those responsibilities to an IT department or consultant really very different from assigning them to a cloud provider? When considering your options, enter into the process knowing which objectives are most important to you and what risks are most worrisome. A knowledgeable and impartial consultant can help you understand which options might be a fit for your needs and the risks and benefits of each. Jeffrey A. Levy, CPA, is a senior consultant and Thomas Hasard is the lead systems engineer at Wilkin & Guttenplan. Levy is a member of the New Jersey Society of CPAs Technology Interest Group. Contact the authors at 732-846-3000.
What the Heck Is the
Internet of Things? Technology companies are notorious for selling the sizzle of products while they’re still in their infancies. Today, it’s difficult to peruse technology literature, or the general press for that matter, without stumbling upon a story discussing a new phenomenon of the evolving digital age: the Internet of Things (IoT). General Electric has dubbed this process of accumulating information from advanced sensor technology, “the industrialization of the Internet.” Cisco Systems, a global manufacturer of digital routing and switching equipment, has boldly proclaimed this the “Internet of everything.”
By Marc D. Mintz, CPA Marc Mintz & Associates, LLC
Examples of the IoT are the remote monitoring of medical patients outside of a hospital or a driverless car. One thing is certain; over the next generation, our world will change dramatically as miniaturized lowcost sensors are embedded into the everyday objects currently found in our homes, our cars and eventually inside our bodies themselves. These sensors—which will have the ability to communicate, learn and control—will eventually tie into vast networks of analytical decision support systems. While this may seem far-fetched, several advances have converged to provide the building blocks for such a future: • Miniature and inexpensive singlefunction microprocessors. • Advances in low-cost radio communications. NEW JERSEY CPA • MARCH • APRIL 2015
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• Availability of high-speed Internet connectivity. • Development of advanced analytical software systems. Applications for the use of these devices in industrial and communications components are leading a drive to a world in which billions of additional microprocessors will be brought online in the near future. New automobiles contain dozens of these chips in various components, including sophisticated on-board communications systems. It’s conceivable that the day will arrive when most street signs, thermostats, industrial light bulbs, medical devices and countless other objects will possesses the ability to monitor, notify and even react to a changing set of rules and conditions.
That’s Great. But How Will It Impact Financial Professionals?
The implications for commerce, manufacturing and finance will be titanic as real-time transaction and data feeds are shared between companies, their vendors, industries, governmental entities and research institutions. Many of these smart devices will become de facto platforms that give rise to businesses and industries that currently do not exist. Just like the Internet provided the required mainstay for the quickly expanding Software as a Service industry, billions of sensors generating mountains of data will provide vast opportunities for utilizing the information from
these new resources. A proliferation of information specialists, often with keen financial skills, will be required for accumulating, validating and managing this avalanche of minuscule data. Having the ingenuity to design and maintain wide-ranging financial modeling systems, which can be used as a foundation for making sound business decisions, will be critical. Areas such as inventory management, resource capacity planning and capital expenditure budgeting will be influenced as accountants and financial managers allocate assets based on the continuous flow of information arriving from the equipment and products soon to be enabled with sensor technology. Pricing philosophies and policies will be revolutionized as continuous product tracking will allow for complex models that maximize profits based on usage and perceived customer value. Uber’s 21st century transportation service is an excellent example of how commoditized pricing for goods and services will be replaced with unique pricing by transaction. Product shrinkage and spoilage will also be reduced, as products embedded with sensors can track both physical location and environmental conditions. It’s not difficult to imagine a future where emerging financial sciences in areas such as predictive analytics, big data management and identifying relevant key performance indicators will dramatically increase management’s reliance on savvy professionals who can meld data analysis with financial acumen.
IoT's Future?
While the IoT sounds like something from Charlie Chaplin’s Modern Times, who could’ve imagined the profound impacts that the personal computer, smartphone and World Wide Web would have on our everyday lives? While predicting the future involves guesswork, I’d like to offer some thoughts of what might happen as the IoT continues to expand. The essence of this evolution will be a world where devices and things will communicate
and control other devices and things, with much less need for human intervention. Microprocessors will communicate with each other to schedule appointments, control environmental conditions and perform surgeries. Intelligent systems, based upon rules and analysis of constantly changing conditions, will run continuously. Human will, judgment and experience will reside at the core of these interactions between inanimate objects, but advances in design, artificial intelligence and material sciences will produce devices that will be stronger, faster, more reliable and less subjective than mere mortals. Beyond the scope of this discussion, the issues of security, privacy and ethical trepidations will also play into the ebb and flow of this inescapable revolution. If the proper procedures and programs are all in place, is it really that hard to envision an audit occurring with nominal human NEW JERSEY CPA • MARCH • APRIL 2015
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interaction or a tax return being prepared from readily available online information? Twenty-five years ago, who would have thought that banking information could be passed to accounting programs, tax forms could be matched to taxpayer’s returns, or state and federal agencies could share information, all with no manual human effort? It all seems inevitable; the only question that remains is when will all of this occur? The continuing evolution of the IoT will look much different to my progeny than it does to me. Marc D. Mintz, CPA, CITP, CGMA, is the managing member of Marc Mintz & Associates, LLC, a technology consulting firm that assists businesses with strategic planning and the selection and implementation of information technology systems. He is currently a member of the New Jersey Society of CPAs Strategic Planning Committee and the Editorial Advisory Board of New Jersey CPA magazine. Contact him at marc@marcmintz.com or 973-808-9040.
SPECIAL ADVERTISING SECTION
CONTINUING EDUCATION PROFILE Master of Accountancy in Financial Accounting
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his innovative and convenient 30-credit program is designed for graduating accounting majors and accounting professionals who want to earn a graduate degree while meeting the 150-hour education requirement to be licensed as a CPA. The program offers students the flexibility to start or continue their employment while pursuing the additional college credits to meet the 150-hour requirement. Two consecutive five-week summer sessions need to be taken on campus. All other classes are taken online. The program focuses on enhancing the accounting professional’s knowledge of current issues facing the world of accounting. Graduates are prepared to pursue careers in public accounting, private industry, government, education, not-for-profit corporations, and consulting. Rutgers Business School (RBS) thrives within Rutgers University, the nation’s eighth oldest institute of higher education. With more than 270 degree programs with which to partner, RBS is uniquely capable of delivering cuttingedge multidisciplinary curricula that combine a mix of business, science, and technology skills required by today’s leading corporations. The Master of Accountancy in Financial Accounting program goes beyond the basics of accounting to develop professionals with comprehensive insight into the world of business through a curriculum strongly focused on emerging technologies, analytical and communications skills, and a wide range of practice areas from forensic accounting, to business valuation, to litigation support, and more. More than 130 partners and principals in the Big Four firms are Rutgers alumni—representing one of the single greatest concentrations from major business schools. Graduates of Rutgers accounting programs are highly sought
by all major accounting firms and corporations. Today’s global business environment requires accounting professionals who understand the impact of accounting on other business disciplines, the stewardship of corporate financial resources, and the current movement toward international accounting standards. Students in the Master of Accountancy in Financial Accounting program may elect to take courses in other business disciplines such as finance, management, and international business to broaden their knowledge of these disciplines. Innovation is essential for corporations to maintain growth and stay ahead of the competition. These successful companies recognize diversity is a key ingredient to meeting their innovation goals. RBS is an integral part of a campus that has been ranked #1 in diversity since 1997 by U.S. News & World Report when the magazine began ranking diversity. Students in the Master of Accountancy in Financial Accounting program benefit from a curriculum developed with the input of industry leaders, taught by experts in the subject areas. One example is the online business valuation course developed and taught by the former executive vice president in charge of the corporate valuation consulting practice at Standard & Poor’s. Other real-world learning opportunities include: • Decoding of Corporate Financial Communications; • Utilizing Technology in Auditing; • Analyzing Governance Issues; • Exploring Ethical Considerations in Today’s Global Business Environment. Completion of the program requires 30 credit hours of course work. Students entering the program in the summer take five core courses during two consecutive five-week sessions. Remaining classes are taken online.
Rutgers Business School 1 Washington Park Newark, NJ 07102 973-353-1234 Geographically situated at the center of global business, RBS has access to the top executives leading the world’s largest corporations. Our partnerships with these companies are central to the RBS experience and offer our students distinct career advantages, evidenced by the success of 30,000-plus RBS alumni. The Master of Accountancy in Financial Accounting program partners with leading representatives from the Big Four and regional accounting firms to ensure students receive broad exposure to the multifaceted aspects of today’s world of business and finance, along with developing the leadership and team-building skills that lead to success.
A STUDENT PERSPECTIVE The Master of Accountancy in Financial Accounting program’s structure allowed me to obtain my graduate degree within a year, and to earn the 150 credits that I needed to sit for the CPA Exam. The dedication and knowledge of the professors, the teamwork and camaraderie with a diverse range of fellow students, and the access to career resources specifically targeted to the accounting profession, made my Master of Accountancy in Financial Accounting experience extremely beneficial. — Derkyl Paton (’12)
business.rutgers.edu/finmaccy
Rutgers Master of Accountancy in Financial Accounting On-campus & Online Program
Earn your Masters in Financial Accounting in 12 months for less than $25K.* The program requires 30 credits, 15 are earned during the summer session, when students are enrolled on campus on a full-time basis. The remaining 15 credits are electives taken on a part-time basis on-line in the Fall and Spring semesters. The program provides flexibility for students and firms. Accounting graduates admitted into the program in the summer can complete 50% of the degree requirement prior to joining a firm.
Online Audit Analytics Certificate As an alternative to the masters program, non-matriculated students may complete four online courses to receive a certificate in Audit Analytics. The certificate program consists of courses in advanced topics such as Audit Analytics and Information Risk Management. Visit: business.rutgers.edu/finmaccy Email: admit@business.rutgers.edu Telephone: 848-445-9229 *The Board of Governors reviews the tuition and fees on an annual basis and sets new tuition and fee rates at its July board meeting.
“The Financial Accounting program is structured in a way that allows students to obtain a master’s degree without a significant delay to the start of their careers and related earning capabilities. Along with providing a solid knowledge base in accounting, the Financial Accounting program provides students with a broad perspective. They graduate with the knowledge and skills they need to get started and succeed in the accounting profession. It’s a program I highly recommend.” Paul Krieger, Audit Partner, Rutgers, The State University of New Jersey – founded 1766
Deloitte & Touche
SPECIAL ADVERTISING SECTION
CONTINUING EDUCATION PROFILE Kean University’s M.S. in Accounting Prepares You for the CPA Exam and for Your Career
A
re you ready to sit for the CPA exam? Or perhaps you have already sat for it, but still need 150 credits to practice as a Certified Public Accountant in New Jersey? If so, the M.S. in Accounting at Kean University offers a rigorous program that meets CPA requirements and allows you to move your career forward right now. Kean’s M.S. in Accounting program is designed for students whose undergraduate majors are business related. Faculty are highly credentialed professional CPAs. Courses offer a critical analysis of accounting principles, pension and retirement issues, trusts and estate plans, legal concepts important to accounting professionals, case studies, and more. Data and statistical analysis are studied in depth, as is the use of microcomputers in conducting audits. Additionally, there are elective courses which can be drawn from the global MBA and other fields. The 30-credit, 10-course format is fast and flexible. Highly motivated students can finish the program within one year.
The ancillary benefits of the program are considerable. Small class size means greater student-faculty interaction. A full-time career counselor assists students seeking internship and job placement opportunities. The Accounting Club invites high-level professionals in the field to speak at their annual symposium, and there are opportunities for networking. Your peers are highly driven students drawn from diverse fields throughout the region, and Kean is a world-class institution. Courses take place at the award-winning, state-of-the-art Green Lane Building on Kean University’s Union, NJ, campus. All of these advantages work to shape the careers of highly successful accounting professionals.
Kean’s M.S. in Accounting program prepares you for the CPA exam and for the professional demands of a career that has been shown to weather all types of economic environments. It envelops a body of knowledge that will help you guide future clients, and will give you a competitive advantage in an increasingly resilient profession. CPAs perform a core function that simply cannot be eliminated; they are in demand, even in the most challenging times. There are two important opportunities this spring to visit Kean’s campus and find out more about the M.S. in Accounting program: an Information Session on April 9 at the Green Lane Building; and a Spring Open House on March 22 at Kean’s East Campus. Contact Dr. Veysel Yucetepe at 908-737-4762 or vyucetep@kean.edu and go to grad.kean.edu/masters-programs/ accounting for more information. We look forward to meeting you.
Spring 2015 Graduate Open House Sunday, March 22, 2015 12:30 P.M. - 3:30 P.M. Kean University East Campus Union, NJ 07083
M.S. Accounting Information Session Thursday, April 9, 2015 5:30 P.M. - 6:30 P.M. Kean University Green Lane Academic Building, Room 209 Union, NJ 07083
PREPARE TO QUALIFY FOR THE CPA EXAM WITH A WORLD-CLASS
MASTER OF SCIENCE IN ACCOUNTING PROGRAM THAT’S CLOSE TO HOME.
THE PROGRAM INCLUDES COURSES IN: • Financial Accounting for Managers and Corporations • Taxation of Individuals, Estates, Corporations and more • Research Seminar in Public Accounting and Auditing Practice • Law, Ethics and Professional Accounting Practice • Auditing Information Systems Small class size. Professors with real-world experience. Flexible class schedules.
NAT H A N W E I S S
GRADUATE COLLE GE KEAN UNIVERSITY, 1000 Morris Avenue, Union NJ 07083 908-737-GRAD (4723) • grad-adm@kean.edu • grad.kean.edu
SPECIAL ADVERTISING SECTION
CONTINUING EDUCATION PROFILE
Accounting for Your Education
W
hether you are a practicing certified public accountant or considering entering the accounting profession, acquiring the necessary education and experience are key steps in advancing and achieving your professional goals. At no other time has an accounting degree been more relevant and adaptable to the workplace. “The accounting professional is essential to the successful operation of government, industry and small business in America,” said Dr. Michael Williams, dean of the School of Business and Management at Thomas Edison State College. “Credentialed accounting professionals are in demand. In order to be and remain competitive, accountants must be aware of the constantly shifting governmental regulations, trends in international accounting and the unique needs of their clients.” Often, accountants are considered key business advisors by industry leaders. As a result, accounting professionals are frequently asked general business management-related questions. Increasingly, accountants are acquiring formal management knowledge, competencies and skills as an extension of their accounting expertise. “In many organizations, accountants serve in several key leadership roles,” said Williams. “Possessing a scholar-practitioner oriented management education can enhance accountants’ value and contributions to organizations.” Bachelor of Science in Business Administration Degree in Accounting/CPA The college’s Bachelor of Science in Business Administration (BSBA)
degree program in Accounting/CPA provides CPA-bound students with the prerequisites required to sit for the CPA exam in New Jersey. Students earning their degree can then seamlessly integrate the 120 credits they have earned into our CPA & Master’s Track. CPA & Master’s Track The college’s CPA & Master’s Track provides an affordable and flexible method for CPA-bound accountants who already possess a bachelor’s degree to earn the 30 additional credits needed to become a certified public accountant and apply those 30 credits to a master’s degree program. Already passed your CPA exam? You can earn up to 6 credits toward your Master of Science in Management degree.
Our MSM is designed so working adults can complete the program on a part-time basis in about 18 months. The School of Business and Management offers a practitioner-oriented graduate curriculum that enables students to advance in their careers. — Dr. Michael Williams
For more information, contact the School of Business and Management at sbm@tesc.edu, (609) 633-6460 or toll free (888) 442-8372. Visit us online:
www.tesc.edu/business Master of Science in Management (MSM) with an Area of Study in Accounting The Master of Science in Management degree program with an area of study in Accounting offers students a uniquely collaborative online experience while expanding their management and leadership acumen. The Accounting area of study builds on the principles of financial accounting, theoretical structures of accounting, stock market transactions and auditing and investigative fraud techniques. The program is aimed at individuals who have already completed an undergraduate degree at a regionally accredited institution and have a minimum of 24 credits in accounting. “Our MSM is designed so working adults can complete the program on a part-time basis in about 18 months,” noted Williams. “The School of Business and Management offers a practitioner-oriented graduate curriculum that enables students to advance in their careers.”
design your
education
maximize your roi
Earn your Master of Science in Management with an Area of Study in Accounting In a world where every penny counts, the right degree could accrue serious interest. Expand your management and leadership skills while supplementing your knowledge in financial accounting, theoretical structures of accounting, stock market transactions, and auditing and investigative fraud techniques. At Thomas Edison State College, you can do it on your schedule and at a cost that makes balancing your budget a whole lot easier.
LEARN MORE: VISIT CALL
www.tesc.edu/business (888) 442-8372
Thomas Edison State College is one of the 11 senior public colleges and universities in New Jersey, and is accredited by the Middle States Commission on Higher Education, 3624 Market Street, Philadelphia, PA 19104 (267) 284-5000.
SPECIAL ADVERTISING SECTION
CONTINUING EDUCATION PROFILE Rutgers University Announces its 2015 Professional Master of Accounting
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he Rutgers School of Business– Camden will bring its recognized Professional Master of Accounting (PMAc) degree program to the Cherry Hill/Camden NJ area again, by popular demand, for 2015. Designed for working accounting and business professionals, the Rutgers PMAc degree program is structured as a 16-month accelerated degree program. Participants thrive with a curriculum that conveys analytical tools, the latest business techniques, and enhanced skills needed to succeed in today’s competitive marketplace, all of which can be instantly applied in the workplace. In addition to satisfying the 150hour eligibility requirement to sit for the CPA exam in New Jersey, New York, and Pennsylvania, the curriculum incorporates the CPA three-part exam methodology. Through relevant coursework, engaging team projects, and challenging case studies and
simulations, students receive a broad background in accounting and business, and further develop their careers in public, corporate, government, non-profit accounting, and education. Guided by highly experienced and accomplished Rutgers School of Business-Camden faculty, students develop their knowledge, critical thinking and decision-making skills, and teamwork savvy. With Saturday classes and no classes during peak tax season, it is the ideal solution for those who wish to earn their master of accounting degree from a highly respected AACSB Internationallyaccredited institution without disrupting their full-time career. The program’s popular cohort format brings together groups of diverse professionals from a variety of organizations and industries throughout the region. Students collaborate to stimulate their intellect, heighten their potential, and broaden their perspectives, all while expanding their professional network.
PROGRAM FEATURES •C onvenient 16-month accelerated degree program
•W orld-class Rutgers University faculty
• Saturday classes
• CPA 3-part exam methodology built into curriculum; meets the 150-hour eligibility requirement
•N o classes held during peak tax season (March and April)
Rutgers University School of Business – Camden 227 Penn Street Camden, New Jersey 08102-1656
Upcoming Information Sessions Attend one of the upcoming Information Sessions in the Cherry Hill/Camden NJ area: • Thursday, June 4, 2015 6:30 to 8 p.m. • Tuesday, July 7, 2015 6:30 to 8 p.m. • Saturday, July 25, 2015 9:30-11:30 am • Saturday, August 1, 2015 9:30-11:30 am • Tuesday, August 18, 2015 6:30 to 8 p.m. To register or for more information, go to: http://business.camden. rutgers.edu/pmac/ or call us at (856) 225-2700
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Join us at an information session: Wednesday, March 4 6:30 pm to 8 pm
Wednesday, May 6 6:30 pm to 8 pm
Wednesday, April 8 6:30 pm to 8 pm
Thursday, June 4 6:30 pm to 8 pm
Location: Cherry Hill NJ area To register visit:
pmac.rutgers.edu/infosessions or call 856-225-2700
Expect More. Be More. Choose RutgeRs.
A&A
buzz
Intermediate QuickBooks By Jaime C ampbell, CPA, Tier One Services LLC
W
e all know that we can probably get more out of QuickBooks. For auditors, the following features and techniques are a must for the experienced QuickBooks Desktop Edition user.
rows” to non-zero. Finally, and most importantly, click on the Filters tab and set the Account to Accounts Receivable or another account of your choosing. You can also go to the Header/ Footer tab and change the report title from Custom Summary Report to “Cash Basis A/R by Customer” or some other descriptive title. This technique is identical for the following reports: Cash Basis A/P by Vendor, Undeposited Funds by Payor, Unearned Income by Customer, Prepaid Expenses by Vendor, and Accrued Interest Payable by Lender.
New for 2015: Commented Reports
Accountants can use the Commented Reports feature to freeze a report’s numbers and type a comment on each line item. For those of us doing analytics for attestation engagements, this feature helps us keep the data inside QuickBooks, instead of us having to collect a stack of Excel spreadsheets. Simply run the report and click Comment on Report. Click the small green callout icon and type your comments. Then click Save to add the report to the Commented Reports list.
Faster-Than-Light Adjustments
Whether you do financial statement work, perform tax work or supervise the data entry of a junior accountant or bookkeeper, the Batch Reclassify feature will dramatically decrease your supervisory time, as well as increase the quality of the records over time. The disadvantages of calculating and entering journal entries include the difficulty in someone else understanding a batch total and the need for extra workpapers to document the calculation and adjustment decision. Also, without a client or junior training session, future transactions will again be booked incorrectly. With Batch Reclassify, the incorrect transactions are changed all at once. Batch Reclassify is a gem inside the Client Data Review, found in the Accountant menu. You can bring up all transactions for a certain customer, vendor or other name—no matter the G/L account—and you can look for
QuickBooks Statement Writer patterns and interruptions to those patterns. You can also look at the ledger for an account and spot misclassified transactions, similar to how you would look through a ledger outside the CDR. There’s a checkbox for each transaction and a Select All button. Select the transactions to be reclassified, enter the destination account for all of the checked transactions and click Reclassify. Get an accountant’s copy from your client first so that you can send these changes back to the client.
Cash Basis A/R and A/P
Have you ever run a cash basis balance sheet and seen an accounts receivable or accounts payable balance? A journal entry to income or purchases against an offset account may be inaccurate, and it makes the client’s financial reports very confusing. However, you can quickly narrow down the source of this non-zero amount and figure out how to fix it appropriately by building a custom report. From the Reports menu, select Custom Reports, then Summary. Set the Report Basis to Cash and set Display Rows By to Payee. Next, click the Advanced button and set “display NEW JERSEY CPA • MARCH • APRIL 2015
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Problems with issuing financial statements using something other than QuickBooks may include the need to create a financial statement template from scratch, lack of transparency about which QuickBooks accounts comprise each financial statement account, and the need to update numbers in two places if another adjustment is required after the financial statements have been created. The QuickBooks Statement Writer is free and effective. It creates an Excellike interface, but it is completely integrated with the QuickBooks file. Follow the prompts to create the financial statements in minutes— combining accounts where desired— and set your preferences. Even if you are in public accounting, you can still save the template to use next year, because it’s actually separate from the main QuickBooks file even though it’s integrated. Jaime Campbell, CPA, M.B.A., CGMA, is the chief financial officer for Tier One Services LLC. She is a member of the New Jersey Society of CPAs Technology Interest Group. Contact her at jcampbellcpa@tieroneservices.net or 704-837-0185.
BEST
practices
Avoid Struggling with a Non-Tech-Savvy Boss By Mario Nowogrodzki, CPA, Mendelson Consulting
I
n today’s technology-driven world, being able to hold an effective conversation with a non-tech-savvy individual is an important skill—even more so when dealing with a boss. Here are some recommendations on how to talk “tech” with your boss so that you can maintain his or her attention and communicate effectively.
Understand
Depending on the level of management and industry, a boss may or may not necessarily need to be very tech savvy. If he/she has capable staff, that team can certainly be successful. The supervisor may be able to command the team effectively, regardless of technological knowhow. Don’t assume that because he/she is a non-tech-savvy boss, he/she won’t be effective at the position.
Gauge
Determine your boss’ working knowledge by asking simple, pointed questions or by making casual passing comments about something specific in computers or mobility. For example, chat about your preferred web browser or the operating system on your mobile devices and assess his/her reaction. Avoid coming across as patronizing; try not to underestimate your supervisor’s knowledge.
Communicate
After you understand your boss’ level of knowledge, you’ll then know how deeply you need to explain something. Explain things in plain English, use simple examples and don’t overwhelm with over-the-top explanations. You’re not trying to impress with your technical knowledge; you’re simply trying to communicate effectively. The ultimate goal is to be understood. Unless absolutely necessary, or
depending on how the boss asks questions, there’s little reason to explain how you’re going to do something. The more important questions are why you are doing it and what the possible results may be. Think about when you visit a doctor or an attorney—they tend to speak in unfamiliar medical jargon or legalese. If you can relate to that feeling of wanting them to “cut to the chase” and tell you what’s really going on in plain English, then you can relate to the non-tech-savvy boss listening to you talking tech. Another good example is when you go to an auto mechanic. If you aren’t a car aficionado, you won’t want to hear about what is wrong with what part, but more of what needs to be done to get you back on the road. If the doctor, attorney and car mechanic were to speak in plain English and speak about the end goals, they’ve accomplished the task of communicating effectively.
Confirm and Share
Use language to which a supervisor can relate. Use terminology and methodology that’s conducive to effective communication. If necessary, use pictures or diagrams. Visuals often help strip down tech-speak without being condescending. Use scenarios and situations that are pertinent to the supervisor’s background. Be creative and make analogies to relay complex concepts. Pause between different points and encourage your boss to ask clarifying questions. Remember, you want to ensure proper understanding, so it’s critical that you get feedback and confirmation of understanding. Non-tech-savvy individuals prefer NEW JERSEY CPA • MARCH • APRIL 2015
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things in writing so that they can read and re-read at their own pace. An effective boss may also like to research the topic, so share any resources that may be relevant. For example, provide helpful web pages or links that explain things in simple terms. You may want to impress a boss with your vast amount of technical knowledge. However, if he or she doesn’t understand said knowledge, your efforts are lost. The objective is to communicate effectively, not impress your supervisor with techno-speak. When explaining a concept, take it slow, strip it down to basics, use analogies, talk in familiar terms and emphasize the results of the technology more than the technology itself. Your techno-speak shouldn’t be perceived as jargon, but familiar terminology that has a purpose. It’s important to note that these strategies extend beyond your boss to conversations with coworkers, clients, vendors and others. Mario Nowogrodzki, CPA, CITP, is founder and principal of Mendelson Consulting, an accounting technology consulting firm that assists entities with planning, selecting and implementing accounting information systems. Nowogrodzki is a member of the Florida Institute of CPAs Business Technology Section; a contributing author and speaker for Intuit, The Sleeter Group and the National Advisor Network; and founder of the South Florida QuickBooks Meetup Group. Contact him at mario@mendelsonconsulting.com or 954-447-0250.
BUSINESS & INDUSTRY
insights
B Corporations Create CPA Opportunities B y Sean S tein S mith, C PA, United Water
P
erusing business headlines, trade publications or academic journals reveals that there are several trends dominating discussion and research. Risk management, cybersecurity and macroeconomics are headline news stories, but there are several others in the background poised to spring to the forefront. Sustainability, corporate governance and a reassessment of business overall are topics and themes gaining traction in virtually every realm of society. Sustainability reporting, integrating financial reporting, investment funds oriented specifically for eco-friendly options and organizations such as Global Market Insight, which focuses on corporate governance, are clear market-directed results of these trends. Businesses and corporations are subject to increasing scrutiny and critique from a broad range of stakeholders, including regulators, investors, environmental groups and the communities they serve. As a partial response to this shifting sentiment, a new corporate structure has emerged: the benefit corporation (B corporation).
What Is a B Corp?
According to the Benefit Corp Information Center, a B corporation is one that shall create general benefit, as well as retaining the right to specify a particular public benefit (e.g., charitable giving, carbon neutrality, local sourcing). Reporting requirements are also oriented toward these dual profit and societal goals, which must include assessing societal goals and disseminating the information to shareholders. When analyzing the concept of a B corporation, look at the flexibility inherent in the general versus
specific public benefit and the fact that the directors and managerial team have significant discretion over goal specifics. Another key point for reporting purposes is that there is not yet a defined and formalized framework for the financial reporting of B corporation results. While this concept might seem to be a relatively recent development, it’s basically an extension of the “do good by doing well” philosophy epitomized by Ben and Jerry’s. Every state that has currently ratified the B corporation has individualized reporting and legislative requirements. New Jersey has its own specific reporting requirements and guidelines, listed in N.J. STAT. ANN. § 14A: 6-1(2) (2013). This creates opportunities for accounting professionals willing to leverage this innovative business concept.
CPA Opportunities
B Corporations represent the convergence of several trends sweeping the business world, and CPAs are well-positioned to capitalize on these advantages. Green metrics, sustainability reporting and quantitative rankings related to corporate governance are increasingly important in practitioner literature and continuing education courses. These trends and ideas are also manifested in the marketplace, including proxy fights over eBay and governance issues that caused the Alibaba IPO to take place on the New York Stock Exchange. Accounting professionals are well-qualified to observe these strategies and leverage them into the following areas relating to B corporations, which themselves integrate financial and nonfinancial information into operations: • Develop and improve sustainability and environmental metrics. NEW JERSEY CPA • MARCH • APRIL 2015
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• Quantify and measure the effect of good governance on business operations. • Work with professional bodies, such as the American Institute of CPAs, to develop attestation standards. • Ensure appropriate and accurate disclosure of nonfinancial information in B corporation reporting. • Bring rigor and professionalism to an emerging area to ensure accurate, transparent and comparable information is delivered to the marketplace. Regardless of the particular corporate form a company selects, there are certain requirements that must be satisfied pertaining to externally reported information. Essentially, a key driver of value of the accounting profession is the production, interpretation and distribution of information pertinent to the users of this information. Financial reporting has traditionally focused on metrics and qualitative information most useful to debt and equity holders. But with increasing pressure for a more comprehensive view of financial performance, this framework is no longer entirely sufficient. B corporations, with a unique blend of social mission— which can include sustainability and governance layers—and profit motive, provide accounting practitioners the opportunities to continue to create value for both their organizations and the profession. These practitioners must be willing to be flexible and embrace this innovative thinking. Sean Stein Smith, CPA, M.S., M.B.A., CMA, CGMA, is a senior accountant at United Water. He is a member of the New Jersey Society of CPAs. Contact him at ssteinsmith@yahoo.com.
FINANCIAL
planning
New York’s Overhauled Estate Tax B y Edward R. Collins, Artisan Wealth M anagement, L L C
W
hen President Bush signed the 2001 Economic Growth and Tax Relief Reconciliation Act, he increased the federal estate tax exemption and, perhaps more importantly, eliminated the state estate tax credit, starting the process of decoupling between the federal estate tax system and those of the individual states. Since 1963, New York has imposed its own level of estate tax. However, its amount and collection were integrated within the federal estate tax prior to the decoupling. For the past 13 years, New York had been a relatively expensive state in which to pass away. While the per-person federal estate tax exemption amount continued to rise from $1 million in 2001 to $5,340,000 in 2014 and now $5,430,000 this year, New York has held its exemption at $1 million. That meant that while one may not have had to worry about a federal estate tax liability, the estates of many New Yorkers were exposed to a state-level of estate tax—until April 1 of last year. New York overhauled its estate tax system in 2014. The legislature and
Figure 1
Governor Cuomo revised the system to mirror the federal system by 2019, at least from an exemption standpoint. For those passing away on or after April 1, 2014, but before April 1, 2015, the New York estate tax exemption increased from $1 million to $2,062,500. This exemption will continue to increase over the next few years to ultimately match the federal exemption by 2019 (Figure 1). This overhaul means that the estates of thousands of New Yorkers will be relieved of the burden of a New York estate tax liability over the next few years.
Don’t Be Fooled
Many of your clients may come to realize that this overhaul comes with a rather cruel April Fools’ joke. While the New York exemption amount is going to increase, the revised law has two challenging components. First, unlike the prior law, what a client has done in the past may come back to haunt him or her. Taxable gifts made within three years of the date of death will now be included in the
New York Estate Tax Exemption Table
Death on or After
Before
NY Basic Estate Tax Exclusion Amount
100-Percent Loss of Exclusion
January 1, 2014
April 1, 2014
$1,000,000
N/A
April 1, 2014
April 1, 2015
$2,062,500
$2,165,625
April 1, 2015
April 1, 2016
$3,125,000
$3,281,250
April 1, 2016
April 1, 2017
$4,187,500
$4,396,875
April 1, 2017
January 1, 2019
$5,250,000
$5,512,500
January 1, 2019
Going forward
Federal estate tax exemption amount
105 percent of the federal estate tax exemption amount
NEW JERSEY CPA • MARCH • APRIL 2015
25
gross estate. Therefore, it is even more important to properly plan one’s gifting strategy going forward. Second, and even more contentious, is what some are calling a “cliff” estate tax reality. The current law will eliminate the beneficial effects of the New York estate tax exclusion amount for estates equal to or above 105 percent of that year’s exemption. Therefore, for a New Yorker passing away on April 1, 2015, with an estate valued at $3,281,249, his or her estate would benefit from an exemption on the first $3,125,000. However, if the estate was worth just $1 more, the entire exemption would disappear and $3,281,250 would be completely exposed to New York’s estate tax.
Failure to Plan Is Planning to Fail
While it is clear that there are some tremendous benefits of this overhaul, there are also some serious issues to address via prudent planning. Estate tax minimization is not the sole reason to engage in estate planning. Some would argue that tax minimization is a distant third to asset protection and ongoing management and control of what has taken a lifetime to accumulate to benefit one’s intended heirs. Tax season is an ideal time to reconnect with your clients and help them to understand the benefits of prudent planning. It is also an ideal time to ensure you have an understanding of their complete financial pictures. Edward R. Collins, CFP, AAMS, RFC, is a founding partner and wealth advisor at Artisan Wealth Management, LLC. Contact him at 908-366-7630 or ecollins@artisanwealthmanagement.com.
Forensic
file
Why Not Create Your Own Software Valuation Model? B y Gary R. Trugman , C PA, T r u gman Val uation A ssociates , I nc .
S
omeone once asked me what type of software I use to perform business valuations. My answer was Excel. Although there are many valuation software products on the market that will work well for the majority of these professionals, I’ve found them to be too restrictive in allowing me to drive the software, rather than the software driving my valuation. Creating your own software valuation model has many advantages over using canned software. Our models have been created as templates so that each time a staff member opens it, he or she saves it as a client-specific file. Once we’ve verified that the model does what’s expected, there’s no reason to check the math each time. In fact, we have password protected any cell that contains a calculation so that our staff is unable to change a formula without management knowing about it. Each of our models is set up to link to each other, but we split them up years ago because a single model was getting so large that it was becoming unruly. Our main three templates allow us to handle all aspects of the valuation from start to finish. We can input the raw data and get comparative financial statements, common-sized financial statements, about 60 financial ratios, a working capital analysis, a DuPont analysis and an ability to make normalization adjustments. We can then get adjusted comparative financial statements, adjusted common-sized financial statements, adjusted financial ratios, an adjusted working capital analysis, an adjusted DuPont analysis and a worksheet that can perform a forecast for a discounted cash flow analysis. We can also simplify our analysis by weighting historical data for a singleperiod capitalization model.
We’ve even input Morningstar and Duff & Phelps data to allow us to automatically calculate a discount rate once we put the valuation date into our model. We modify what is needed for a particular job, and our income approach is finished. Our balance sheet allows us to bring the values to fair market value and even perform an excess earnings method if necessary. Our other templates are designed to import guideline company data and transaction data from several different databases, which saves time and allows us to apply the market approach with an incredible amount of detail and analysis. Using drop-down menus allows us to pick and choose which reports we want to print, as we’ve created print macros that save time and formatting. We would otherwise get about 3,000 pages of printout if we just merely print the workbook. Creating our own software has taken many years to get it to where it currently is today, and the models constantly need updating as things evolve in our profession. Data providers and databases change, how you download items changes and valuation theory keeps evolving. You may think that it is too much work to keep updating the templates, NEW JERSEY CPA • MARCH • APRIL 2015
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but there is nothing better than having control of your own destiny. You’ll never be faced with answering the question: “How did the software derive that figure?” Remember, you are responsible for the software that you use, and you must understand the problems that exist in the various software packages that are commercially available. They all have issues, some larger than others. Creating your own valuation models may take time, but it is well worth the investment. Make sure that you test the model before you use it, and consider locking those cells that you do not want someone to change. You can even color code cells to indicate which cells require input, which contain calculations and which ones the user is allowed to change. The changes are usually words and not formulas. Gary R. Trugman, CPA, ABV, MCBA, ASA, MVS, is president of Trugman Valuation Associates, Inc. He is the author of Understanding Business Valuation: A Practical Guide to Valuing Small to Medium-Sized Businesses. He is a member of the New Jersey Society of CPAs Business Valuation Forensic Litigation Services Interest Group. Contact him at grtrugman@trugmanvaluation.com.
Small/Sole
practitioner
Three Password Managers for Small Businesses B y Ryan J. L apinski, CPA, J ohnson Lambert LLP
P
assword management is an important aspect of a small business that can be easily overlooked because day-to-day responsibilities become a business owner’s priority. Since a business may need various passwords for numerous accounts, an owner may find it difficult to store all of these passwords in a safe place. With the high-profile security breaches recently encountered by several companies, having sufficient password management is essential to avoid security breaches and hacks that could threaten a company’s information. A small business owner may find it very advantageous to acquire a password manager to help prevent these problems from occurring.
What Is a Password Manager?
Password managers have the responsibility of remembering all of your different passwords. This enables you to create strong, unique passwords for each of your online accounts. As such, you can lower the risk of potential security breaches that can harm your company. Password managers automatically complete the username and password for the applicable account websites. By not having to enter login information every time you wish to enter an account, a small business owner can devote more time to other responsibilities of managing the business. For small business owners who rely heavily on the Internet, the amount of time saved can make a positive impact for both the owner and company. Password managers are small applications that are installed onto a computer and integrate directly with the web browser. If a business also relies on various mobile devices to
function, the password manager can easily sync up to them as well. In order to use the password manager once it is installed onto a computer and other devices, a single master password is created that the owner will then use to access the manager application. You must examine the pros and cons of each password manager to determine which one is best for you. Here are a few designed for small businesses:
1. CommonKey
CommonKey is a newer password management tool that caters specifically to small businesses and entrepreneurs, while also being user-friendly. One distinctive feature is that it lets small companies securely send passwords across different departments. CommonKey encrypts your data in the cloud, allowing you to access your account from anywhere. CommonKey offers a pair of versions: a free version for up to three people with unlimited accounts and a $2 monthly subscription that can accommodate a larger number of people (commonkey.com).
2. LastPass
LastPass has been in business since 2008. One unique feature of this password manager is that it gives you the option of adding an additional NEW JERSEY CPA • MARCH • APRIL 2015
27
level of security called the two-factor identification. This requires you to provide a second method of proof to access your account, such as a code texted to your smartphone. Another feature of LastPass is that it can monitor your credit and contact you if anything significant changes. This basic version is free to download. There is also a premium version that costs $12 annually. The premium version supports the manager on mobile devices, has increased security and eliminates pop-up ads (lastpass.com).
3. RoboForm
RoboForm is another password manager that has been on the market for a while. One feature of RoboForm not found in other password managers is the ability to complete extensive online forms with just the click of a button. Once it recalls the first form, it can then save the data and use it to autofill subsequent forms. RoboForm also has a strong password generator that eliminates any need for you to create a strong password because it does it for you. This manager is also free to download, but it can only save a limited amount of logins. There is another version called RoboForm Everywhere that costs $9.95 for the first year and subsequently increases to $19.95 annually. RoboForm Everywhere permits access to your logins from multiple desktops, laptops, tablets or mobile devices from anywhere at any time (roboform.com). Ryan J. Lapinski, CPA, M.B.A., is a senior associate at Johnson Lambert LLP. He is a member of the New Jersey Society of CPAs Technology Interest Group and the Editorial Advisory Board of New Jersey CPA magazine. Contact him at rlapinski@ johnsonlambert.com or 732-383-4300.
TAX
talk
Sales Tax Due Diligence in M&A Engagements B y Patrick J. Duffany, C PA, M atthe w Nick, and Milo P eck , C ohn R eznick L L P
I
n merger and acquisition engagements, sales and use (S&U) taxes are some of the most complex areas requiring review. S&U taxes are transaction-based taxes where liability and, thus, risk are typically based on sales and purchase volume—not net income. Typically, S&U tax risks can be classified into three general categories: (1) Nexus— S&U taxes have unique nexus rules that differ from income tax nexus rules; (2) Taxability—S&U tax rules can be complex and are jurisdictionspecific; and (3) Compliance—S&U tax documentation requirements are often lacking.
Issues
Nexus – For S&U tax purposes, a taxpayer must have a physical presence in a state to be subject to that state’s S&U taxes. Physical presence generally, but not always, exists when a taxpayer has an employee, agent or property in a state. Nexus risks often arise due to taxpayers’ lack of awareness of the state rules—or their activities outside their home states. For example, taxpayers often believe that because they are not subject to a state’s income tax due to their limited contacts with such state, they are also not subject to that state’s S&U taxes. As noted, typically any physical presence—even a presence that will not subject the taxpayer to a state’s income tax—will subject the taxpayer to S&U taxes. Many states are also expanding their definitions of what constitutes a physical presence via click-through legislation, which deems out-of-state sellers to be subject to S&U taxes due to the activities of affiliates (generally third parties) located within the state. Accordingly, advisors working on due diligence matters must understand the target’s operational activities in order to identify jurisdictions in which the target may have sales tax nexus.
Taxability – 45 states impose tax on the sale or use of tangible personal property (TPP) and specified services. While the determination of what is considered TPP would seem straightforward, there are twists. For example, many jurisdictions tax canned software, but some states do not tax software if delivered electronically. Also, many states tax services, but the rules vary greatly by state, and the states’ definitions of those services can be ambiguous. Even if the target is fully compliant with the sales tax rules as applied to its products or services, use tax (tax on their purchases) can be problematic. Accordingly, advisors must understand what the target is selling, the taxability rules in the jurisdictions where the products and services are sold, what the target is buying and the related taxability rules. Compliance – The taxability and reporting of S&U tax transactions are extremely document-dependent. For example, S&U tax exemptions are legion. Each jurisdiction uses them to incentivize specific activities, industries or regions within its state. These exemptions are myriad and very detailed, and it is up to the seller to ensure that it has the proper documentation if the seller is not charging sales tax to the buyer. Exemption certificate documentation and use tax accrual workpapers are often inadequate to support the returns filed. An analysis of these documents and workpapers should be integral components of due diligence reviews.
Other S&U Tax Considerations
It’s important to inquire about the target’s history of business acquisitions. Many states impose successor liability for taxes on buyers—even when only assets are acquired. In order to avoid successor liability, the buyer generally must comply with notification and NEW JERSEY CPA • MARCH • APRIL 2015
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withholding requirements. Such requirements are often overlooked, creating an additional S&U tax risk for anyone acquiring the target. S&U tax rules can be a high-risk area in any due diligence review, and the S&U tax nexus rules can be quite complex. Furthermore, taxability rules and the application of such rules for use tax purposes are complex and can be confusing, especially for multistate taxpayers. Lastly, S&U tax reporting and documentation requirements imposed on the seller may have been overlooked and should be part of any due diligence review. S&U tax is often a significant tax risk in a due diligence review. Advisors who do not spend enough time examining a target’s S&U tax compliance, processes and history tread a perilous path. Patrick J. Duffany, CPA, J.D., Matthew Nick, J.D., and Milo Peck, J.D., are with CohnReznick LLP. Contact the authors at 732-635-3128.
TECH
center
When You Need to Leave the Cloud B y Thomas M. Angelo, C PA, Spire Gro u p, P. C .
I
n almost every other technology or accounting blog post, we read about moving a business to the cloud. The trend is to move as many, if not all, of the core business applications to the cloud, thereby removing the need for on-premise servers and backups as well as minimizing costly downtime. What we don’t always read about is: “What happens when you need to get your data out of the cloud?” Some of the reasons that a business may need to move its data out of the cloud are the sale or merger of a company, changing of vendors, or moving to the private cloud or on-premises.
One item to consider when moving from the cloud actually needs to happen before you even make the move. When choosing your cloud vendor among the many startups and established companies, perform the proper due diligence on both the vendor and your cloud service agreement. There are hundreds, maybe thousands, of cloud vendors. Just about anyone can start a company and rent some servers in a data center. Many companies depend on venture funding to keep operating. Thus, it becomes possible that a vendor will abruptly shut down when it runs out of funds. Then you are left to scramble and
hopefully get your valuable business data. To help mitigate the risk, use established companies with good references. Also, make sure your agreement has provisions for you to obtain your data easily and with minimal cost upon departure. For example, will the vendor provide a transition period without a long-term renewal? Is the data in a format that can be universally transferred to a new vendor?
Plan
The cloud is not the place to leave quickly and without notice. Whether
Let Electronic Office Systems (An industry multi-award winning provider) custom tailor fit the right: • Office Equipment and accessories (Printers/Copiers/ Scanners/Fax) • Supplies and service plan • Financing and payment plan • User/operator training • Document management, security and workflow solution
CALL TODAY! (973)808-0100 330 FAIRFIELD ROAD FAIRFIELD, NJ 07004 VISIT US AT:
www.eosnj.com
NEW JERSEY CPA • MARCH • APRIL 2015
29
your company is merging, changing vendors or moving to a private cloud, it is important to develop a plan and timeline. Your organization may be tied to the vendor on a long-term contract that cannot be cancelled without substantial penalties. Or, the contract is almost over, but you will need time to transition. It is vital to develop a detailed project plan that involves all areas of your business. From operations to finance to legal, each has a part to play. Having a new vendor in place and a firm plan will help ensure a smooth transition as well as minimize the costs of leaving a vendor.
Keep IT in the Loop
If you were making a significant change to your on-premise hardware or software, you would most likely involve your internal information technology (IT) department or your outside IT support vendor. There are a great many cloud integration tools currently used by IT professionals that allow you to move cloud data safely and securely. Your IT professional often
has experience in moving from Google Apps to Office 365 or from Salesforce. com to Zoho CRM. He or she also probably has experience moving data to local servers. Involving your IT professionals early in the process can make leaving the cloud a safe and efficient process.
Global Cloud Spending
((in
)
billions) ()
2013............ $145 2014............ $170 2015............ $200 2016............ $220 2017............ $235
Budget
Just as there are costs in migrating to the cloud, there are most likely costs in moving your data out. Create a budget that includes the conversion, new software, on-premise hardware, NEW JERSEY CPA • MARCH • APRIL 2015
30
and consulting or technical support to ensure that you properly forecast your upcoming costs. You may also need to run multiple systems during the transition or keep the cloud data until you can verify that your new application—whether in the cloud or on premise—is working correctly and is not missing anything. While not as exciting as going to the cloud, leaving the cloud requires a significant amount of planning, resources, expertise and money. If not done properly, your company could lose important data or suffer downtime that will compromise your business. Follow a good plan and perform your due diligence to keep the cloud from falling on you. Thomas M. Angelo, CPA, CITP, is a principal at the Spire Group, P.C. He is a member of the New Jersey Society of CPAs Technology and Nonprofit interest groups. Contact him at tangelo@spirecpa. com or 732-381-8887.
CLASSIFIEDS Mergers/Acquisitions
Seize a merger/acquisition opportunity with benefits for you. Tired of dealing with issues of running a firm? 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 glcpas.com; email me, Phillip Goldstein, CPA, managing partner, philg@glcpas.com; or call 800-839-5767 to have a confidential conversation.
Parsippany, NJ. Three-partner CPA firm seeks retirement-minded practitioner to merge/acquire practice ranging from $100K and up. Please contact Carl Gutt, 973-451-0800 x22 or cgutt@dglcpa.com. Thinking of selling your practice? Accounting Practice Sales is the leading marketer of accounting and tax practices in North America. We have qualified buyers waiting and the experience to help you find the right fit for your firm and negotiate the best deal possible. For information about our risk-free and confidential services, call Bradley Holmes at 800-397-0249 or email bradley@apsleader.com. Buyers see listings and register for free email notifications at accountingpracticesales.com. Mountain Lakes, two-partner CPA firm is seeking to merge with or acquire retirement-minded sole practitioners and small firms looking for succession planning. Firm’s gross billings should be from $100K on up. Please reply in confidence to Murray Leipzig, CPA, at 973-394-8920 x11 or northjerseycpas@ earthlink.net.
Bergen County, small size, peer reviewed CPA firm is seeking association with same for office/ practice sharing of space. Will consider future merger of practices. Contact Bruce Kaminer at 201-794-6400 or bruce@brucekaminercpa.com.
Professional Services Add a wealth management division to your accounting practice. Successful Bergen County, high net worth financial planning and money management firm wants to work with your firm to create a financial services division. For 30-plus years we have been successfully implementing professional partnerships with CPA firms to increase their revenues by offering financial products to their clients. Contact Steven Kolinsky at 201-474-4012 or skolinsky@ kolinskywealth.com.
The Curchin Group, LLC, a central NJ, Monmouth County firm is seeking to merge-in near-retirement sole practitioners and small firms needing succession planning. Other individuals seeking growth and expansion are welcome to inquire. Initial practice continuation also an option. Reply in confidence to Peter Pfister, CPA, at 732-747-0500 or ppfister@ curchin.com.
Classified Advertising Replies to ads with file numbers should be sent to: File______________________ New Jersey CPA Classifieds 425 Eagle Rock Avenue, Suite 100 Roseland, NJ 07068-1723 To see additional classified listings or to place an ad, visit njcpa.org/classifieds.
ADVERTISERS INDEX New Jersey CPA is the only way to reach each of the 15,500 members of the New Jersey Society of CPAs, and 55 percent of readers take action after seeing an advertisement in the magazine— by either purchasing the product, contacting the advertiser, visiting a website or recommending the product or service to a client. For advertising opportunities, contact: Companies A-L Aileen Kronke 770-431-0867 x212/aileen@lionhrtpub.com Companies M-Z John Davis 770-431-0867 x226/jdavis@lionhrtpub.com Accounting Practice Sales accountingpracticesales.com
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Electronic Office Systems 29 eosnj.com ImagineTime, Inc. imaginetime.com Kean University grad-adm@kean.edu
2
16, 17
PNC Bank C2 pnc.com Magazine of the
New Jersey Society of Certified Public Accountants
May • June 2015
Provident Bank providentnj.com
May/June – Coming Attractions Improving Business in New Jersey
Rutgers University 14, 15, 20, 21 business.rutgers.edu/accounting.com/finmaccy
l
Tax Reform l Economic Development
l
Unintended Consequences
l
3
Sanders Thaler Viola & Katz, LLP st-cpas.com
9
Legislative Initiatives Thomas Edison State College tesc.edu/business
N E W J E R S E Y C P A • march • april 2 0 1 5
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18, 19
SOCIETY
pages
CPE Offerings and Events Upcoming Education Foundation Events Date
Event/Code
Location
CPE Credit
3/26
Issues Watch with Ralph Thomas (E1503044)
N/A
1/SK
Location
CPE Credit
Upcoming Chapter Events Date
Chapter
Event/Code
4/21
Hudson
Peer Review/Cloud Computing (E1504099)
Secaucus
4/AA
4/24
Southwest Jersey
Nonprofit Update (E1504059)
Berlin
4/AA
4/24
Mercer
Controllership Update (E1504079)
West Windsor
4/AA
4/24
Atlantic/Cape May
Consulting Services (E1504039)
Northfield
4/TX
4/24
Essex
Not-for-Profit Update (E1504029)
East Hanover
4/AA
4/28
Union County
Technology and CPA Succession Planning (E1504049)
Kenilworth
2/MC
4/30
Passaic County
Real Estate and Financing (E1504129)
Paterson
4/AA
5/5
Bergen
Professional Development (E1505049)
Paramus
4/CS
5/5
Monmouth/Ocean
Elder Care/PFP (E1505219)
Neptune
2/AA
5/6
Middlesex/Somerset
Best Practices for Sole Practitioners and Exit Strategies (E1505159)
Somerset
4/TX
5/8
Morris/Sussex
Accounting and Auditing Update (E1505169)
Randolph
4/CS
5/8
Mercer
Accounting and Auditing Update (E1505139)
West Windsor
4/AA
AA – Accounting & Auditing MT – Management
CS – Consulting Services PD – Personal Development SK – Specialized Knowledge
KEY
EC – Economics PE – Professional Ethics TX – Taxation
MC – Multiple Categories PM – Practice Management
Please note: Events are subject to change. For a full listing of all NJCPA events, visit njcpa.org/catalog.
Be a Hero to Your Firm’s Young Professionals The red cape is optional, but you can be a hero to your firm’s young professionals. They struggle with maintaining work-life balance, studying for the CPA Exam, meeting client demands, building new business and just making sure the boss is happy. Young professionals communicate and work differently than you did when you first began your career; however, they still need the tools and resources to excel. That’s where you come in. Reward your young professionals with a New Jersey Society of CPAs membership (njcpa.org/join) and give them an outlet for learning new technical skills, networking with their peers and giving back to the community—things they value highly. Here are a few suggestions to help you achieve hero status: • Support your young professionals’ development through fun and educational events planned by our member-driven Young CPAs Council (njcpa.org/youngcpas).
• Encourage their participation at quality and relevant CPE courses to help them maintain the CPA designation that they worked so hard to achieve (njcpa.org/events). • Bring your young professionals with you to the NJCPA Annual Convention & Expo where there are educational sessions designed just for them (njcpa.org/convention). • Direct your CPA candidates to the NJCPA Exam Cram Blog (njcpa.org/examcram), and take advantage of the exam preparation course member discount (njcpa.org/benefits). Put your young professionals on the fast track for success by encouraging them to join the NJCPA at njcpa.org/join. We’ll do the rest, and you can go back to leaping tall buildings in a single bound.
NEW JERSEY CPA • MARCH • APRIL 2015
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Get Involved Get Noticed When You Get Involved By Julia Van Saun, CPA, WithumSmith+Brown
Get noticed. Enhance your network. Find a mentor. Step out of your comfort zone. These may be standard career tips, but how do you get started? You get started by getting involved. Step away from your cubicle and go above and beyond your daily responsibilities. When you participate in additional employer activities, attend external networking events and volunteer with professional or charitable organizations, you’ll fast-track your career. Start opening doors with these simple ideas:
Give Back; Make a Difference; Help Others Form a team for a charity run or participate in a food drive – Many companies are community-focused and comprised of partners and senior managers who sit on various nonprofit boards. While you may not yet have the expertise to sit on a board, there are still many ways you can help and contribute. By forming a team for a charity run or spearheading a food drive, you’re showing that you possess the ability to lead and enjoy giving back to the community. You can also meet other professionals and start growing your network.
Develop New Skills and Practice Ones You Don’t Use in Your Current Position Participate in the New Jersey Society of CPAs Pay It Forward program – This extremely rewarding program involves professionals visiting high schools to discuss the rewards and opportunities of a CPA career path. Many high school students don’t know much about the “real world” of accounting, so hearing from someone active in the field will help reinforce what their teachers have been telling them—that accounting is a great profession. Visit njcpa.org/payitforward. Participate in speaking opportunities – Presenting a topic in which you have an expertise can be extremely rewarding, whether through a professional association or at your own company. Become recognized as a thought leader to those in attendance, and garner significant publicity for you and your company. Webinars have also become a great tool for presenting subject matter to large audiences, and you can still reap the benefits of a live presentation.
or a LinkedIn invitation after the event to ensure that you stand out to the individuals you’ve met. As your career advances, the other young professionals that you've met at these events are progressing as well. This means that your peers could act as a constant resource. Visit njcpa.org/youngcpas. Make every opportunity a networking opportunity – Get to know the people with whom you work. If you’re at a company event and sitting near a coworker you don’t know, introduce yourself. When you’re walking around the office, notice a group that you may not be familiar with and join the conversation. Turning coworkers into friends can be very beneficial, both personally and professionally. No matter what your profession, finding the time to go above and beyond your daily responsibilities can be extremely difficult. The first step is making the commitment to spend a few hours on developing yourself professionally outside of your normal tasks. A successful career begins with you, and the long-term rewards truly outweigh the demands required from you now. See Van Saun talk about her NJCPA Scholarship experience at njcpa.org/newjerseycpa/marapr15. Julia Van Saun, CPA, M.S., is a supervisor at WithumSmith+Brown. She is chair of the NJCPA Young CPAs Council. Contact her at jvansaun@withum.com or follow her on Twitter @jules_vs.
NJ CPA Month of Service: May 2015
Organized by the New Jersey Society of CPAs, the NJ CPA Month of Service represents the CPA profession’s ongoing commitment to serving the communities where its professionals live and work. CPAs across the state volunteer at locations encompassing a variety of organizations. We encourage you to volunteer for a community organization of your choice; participate as an individual, a group or a firm. Commit to a whole day of volunteering or just a few hours—it’s up to you. Once you choose your volunteer activity, let us know by contacting Don Meyer at 973-226-4494 x207 or dmeyer@njcpa.org. In the meantime, check out the great work that our members and firms did in 2014 at njcpa.org/volunteer-contribute/cpa-month-of-service.
Enhance Your Network and Build Camaraderie Join your company sports team, or form one – Even though you see your colleagues throughout the day, this gives you a chance to interact with them in a more relaxed setting. If you don’t have a sports team, take the initiative to form one. Participating in extra-curricular activities shows management that you enjoy your company and are team-oriented. Plus, taking home a trophy and getting bragging rights never hurt anyone. Attend NJCPA young professionals networking events – The NJCPA offers events throughout the year for young CPAs and CPA candidates to mingle with bankers, lawyers, finance experts, business owners and other professionals. The key, however, is to follow up. Send an email
What’s Your Story?
Did you ever win a chili cook-off? Do you have the world’s largest collection of matchbooks? We want to know. New Jersey CPA magazine is looking for candidates for its Member Profile column. Profilees should have a unique career path or interesting hobby— the quirkier the better. If you have a captivating personal story to tell, contact the magazine’s editor, David Plaskow, at dplaskow@njcpa.org.
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SOCIETY
pages
NJ State Board of Accountancy Report Not Too Early to Review 2018 Sunsetting Regs Newark (December 18) Committees
RMA – 21 people sat for the Registered Municipal Accountants (RMA) Exam in December. Grading will begin in early January. Reciprocity – The committee should follow up with the legal or regulatory analyst on changes to the reciprocity rules. Statutes/Rules/Regulations – The committee needs to plan for the NJ regulations, which sunset in 2018.
Public
New Jersey Society of CPAs’ NJ Law and Ethics instructor Michael A. Polito, CPA, invited the board to attend a recently approved NJ Law and Ethics course administered by the NJCPA. NJCPA CEO and Executive Director Ralph Albert Thomas, CGMA, congratulated the board for its implementation of the Accounting Licensee Database. Thomas mentioned that the American Institute of CPAs is appealing a ruling that
found it did not have standing to file a suit against the Internal Revenue Service with regard to a process for registering unlicensed tax preparers. Thomas said that the Society is building a coalition to help reform New Jersey’s “death” tax. Thomas indicated the Society will also be reviewing the regulations, which are scheduled to sunset in 2018, and offered the board its assistance and feedback.
Newark (January 15) Legislative
The board had received public comments from four parties—including the NJCPA— regarding the revised regulations. It will review and comment if necessary.
Committees
RMA – Of the 21 people who sat for the RMA Exam in December, eight had passed. Monitoring Profession – The board will
reach out to the National Association of State Boards of Accountancy for assistance with the upcoming CPE audits for the 2012-14 triennial. Also, a total of $157,000 in fines was assessed for the 2009-11 triennial, which was categorized as “historically low.”
Public
NJCPA CEO and Executive Director Ralph Albert Thomas, CGMA, mentioned the Society’s annual scholarship ceremony scheduled for Thursday, April 23. Thomas informed the board that a pair of Democratic U.S. Senators had introduced tax preparer registration legislation, which the Society opposes. Thomas indicated that the NJCPA had submitted its peer review report—which was a passing grade—to the board Kenneth A. Heaslip, CPA and an educator, had also submitted a comment letter to the board regarding the revised regulations. He advocated that the best forum to foster learning is a classroom where an instructor and students can interact and share ideas.
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YOUNG
professionals
Five Apps Guaranteed to Increase Your Productivity B y Christopher M. Ch udyk , C PA, Traphagen F inancial G rou p
W
ith the explosion of cloud and mobile technologies, many young professionals and students can use a host of apps to help them stay organized, increase productivity and improve efficiencies to advance their careers. Here are some of my favorite apps: • Evernote • Dropbox • Mint • Google Drive • Study Blue
1. Evernote
I recently downloaded Evernote to my iPhone. (It’s also available for Android devices.) Evernote is a perfect tool for people to organize their personal, financial and academic lives. This app takes all of your important information and stores it in organized notebooks in the cloud. Storable information includes receipts, pictures, to-do lists, articles, class notes and more. Evernote is a free app that can be upgraded to premium for $5 a month or to business for $10 a month. The premium app has enhanced search features, while the business app allows you to collaborate on projects with colleagues.
2. Dropbox
I’ve been using Dropbox for years. It’s a fantastic way to store files in the cloud and access them any time from any device. Because it’s cloud-based, there are no space limitations when sending or receiving files, and it eliminates the need for flash drives to backup and restore data. All you need to do is save a file into a folder and it will be accessible on all of your devices. Dropbox came in very handy for me recently. As head coach of my son’s football team, I had the task of creating a slideshow to present at our
end-of-year party. I used a movie maker program that allowed me to create the slideshow, which even contained background music and animation. It was such a success that all of the parents asked for a copy. The file itself was too large to email, so I saved the presentation in my Dropbox and gave all of the parents access to that folder for them to download the slideshow. It’s a wonderful tool that can save time and money when sending large documents and/or images.
3. Mint
Keeping track of your finances can be challenging, no matter your age. When I first moved out on my own, I had expenses I never dreamed of. Back then, Mint could have helped me keep all of my finances in one place and allowed me to understand the big picture. Mint connects to most financial institutions (banks, credit cards, investment accounts) and automatically updates information in real time. You can keep track of where you are spending your money, monitor your bills, create a budget, generate alerts and view your account balances. Mint can even give recommendations on how to save money based on your spending patterns and financial situation.
4. Google Drive
Google Drive is a great tool for those who want a free (up to 15GB of space) cloud app where they can store and backup files, videos and pictures. Google Drive can be accessed from anywhere as long as you have an Internet connection, and it’s a great tool to invite others to collaborate, view and download files without having to attach them to an email. N E W J E R S E Y C P A • march • april 2 0 1 5
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5. Study Blue
Study Blue allows students to upload class study material, save classroom notes, develop personalized study materials, create flashcards and build practice exams all on a smartphone or computer. Study Blue also lets students connect with other students who are working on the same materials and subjects. Makes taking the CPA Exam a little less daunting, doesn’t it? Thanks to cloud technology, students and professionals of all ages can be much more knowledgeable and productive. It’s a fast-paced world, and everyone wants information at their fingertips. One day soon, all software may be in the cloud and there will be no traditional servers or networks in offices. Getting up to speed with these apps and technologies sooner rather than later can give you a big edge in the marketplace. Christopher M. Chudyk, CPA, CITP, is a partner at Traphagen Financial Group. He is a member of the New Jersey Society of CPAs Technology Interest Group. Contact him at chris@tfgllc.com.
LEGISLATIVE
views
Transportation Trust Fund Running Out of Gas B y Jeffrey T. Kaszerman , NJ C PA Government R elations D irector
W
ith the NJ Transportation Trust Fund (TTF) set to run out of money this coming June, a growing number of lawmakers and interest groups are talking about the possibility of raising the state’s gas tax as a funding source. At 14.5 cents a gallon, New Jersey’s gas tax is the second-lowest in the nation (New York has a 50.6-cent tax and Pennsylvania’s is 32.3 cents.) NJ’s gas tax has remained the same since 1988 when it represented about 11 percent of the cost of a gallon of gas. Today, it represents approximately 5 percent. As outlined by public policy analyst Mark J. Magyar in the online news outlet NJ Spotlight, the “New Jersey Transportation Trust Fund is how the state raises money to finance highway, bridge and mass-transit construction projects that often take years to complete and span multiple budgets. The TTF also includes state aid to counties and municipalities for their transportation capital projects. Created under Governor Thomas Kean in 1984, the TTF was supposed to combine dedicated tax and fee receipts with bond issues, thus ensuring a stable and predictable funding source. Over the past several years, however, an almost total reliance on bonding and borrowing for transportation projects has exacerbated New Jersey’s tax-supported debt burden, which was already among the heaviest in the nation.” The TTF is now $14.8 billion in debt, with nearly all of its funds being used to pay down that debt. Without an infusion of new money by June, the fund will become insolvent. That could cost New Jersey more than $1.6 billion in matching federal money, and many of the projects to fix the state’s roads,
bridges and rail lines could grind to a halt. This bleak outlook has led a growing number of legislative leaders, interest groups and public policy experts to call for a hike in the gas tax to provide a stable source of dedicated funding for the TTF. Many of the individuals and groups proposing the gas tax hike are traditional opponents of tax increases, but they assert that the gas tax is the only viable option to raise the funds needed to ensure the state has the healthy infrastructure needed to support economic growth. Leading the drive to ensure stable funding for the TTF is the Forward NEW JERSEY CPA • MARCH • APRIL 2015
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NJ coalition, headed by NJ State Chamber of Commerce President Thomas Bracken. Forward NJ has more than 75 member organizations, including many regional chambers of commerce, labor unions and business groups like the NJ Bankers Association and the NJ Alliance for Action. (For a complete list of members, visit forwardnewjersey.com/coalitionmembers.) Even Governor Chris Christie has indicated that he’s open to the possibility of a gas tax hike, and some key conservative Republican legislators have likewise expressed openness— especially if it’s linked to a cut in the state’s onerous estate and inheritance taxes. New Jersey has the highest death taxes in the nation, and many business and taxpayer groups—including the New Jersey Society of CPAs—have been advocating for reducing the burden for years. A recent economic outlook survey of Society members showed that 56 percent would support a hike in the gas tax if the revenues were dedicated to the TTF. That response would likely have been significantly higher if the hike was linked to a decrease in death taxes, because the same survey showed that 83 percent of NJCPA respondents believe the state’s burdensome death taxes are prompting their clients to leave New Jersey. The Society is keenly aware that the state’s transportation infrastructure is critical to the public, the business community and its members. As such, the NJCPA is closely monitoring the TTF funding debate and recently urged lawmakers to propose a package that would include a decrease in the estate and inheritance taxes coupled with a gas tax hike.
MEMBER
profile
I’m Just Glad He’s on Our Side By David Plaskow, NJCPA Communications Manager
“G
rowing up in Los Angeles, I had a neighbor who was an FBI agent who used to tell me exciting things about the bureau,” says Grant Ashley, CPA. “Ever since then, even as a six-year-old, I knew I wanted to be an FBI agent.” Eleven years later, Grant called an FBI recruiter. The recruiter’s response? “How old are you?” When Grant said 17, the recruiter replied “Get an accounting degree and then we’ll talk,” before hanging up. “An accounting education was reinforced by the father of a girl I was dating at the time; he was a CPA in industry,” Grant recalls. Grant attended California State University at Northridge, graduating in 1978 with a B.S. in business with a concentration in accounting. “I worked for the FBI by day in a non-agent position and went to school at night,” says Grant. After graduation and due to a hiring freeze, the FBI recruiter suggested Grant get a year of accounting experience and then he would be in a much better position to become an agent. Grant worked at a small public firm in Los Angeles. His clients included many actors and musicians. “I remember one record producer asking if he could deduct illicit drug expenses on his tax return,” laughs Grant. Grant, in fact, found out that he became an FBI agent during a client’s IRS audit. So, starting in 1980, Grant started on the law enforcement fast-track that took him from Los Angeles to Washington, DC, to Chicago to San Diego to San Francisco to Las Vegas. “I was on teams that investigated major frauds, violent crime, terrorism
and other cases,” comments Grant. That’s putting it mildly. Grant was, at one time, the number-three person at the FBI, running two-thirds of the bureau. His list of assignments is staggering: the Oklahoma City bombing, attempted assassination of President Reagan, Unabomber, and 1984 Olympics, among many others. “I think the most satisfying cases, though, were the ones where my team was able to return kidnapped children to their parents,” says Grant. He received a well-deserved Presidential Rank Award in 2003 for his senior executive service. Through it all, his accounting and business training played a role. “It helped me rationally analyze and present information, as well as optimally use and distribute resources—particularly when we ramped up our anti-terrorism efforts,” notes Grant. It was as an FBI agent in the mid1980s when Grant received the CPA designation. “Whatever profession you enter, you should strive to learn the proper skills for both your work and for the people who rely on you,” he says. Named the “2005 Outstanding CPA in Government” by the American Institute of CPAs, Grant currently sits on the AICPA Board. Grant retired from the FBI in 2006. He did global security for Caesars in Las Vegas, but after a year he wanted something more. “Out of the blue, I was N E W J E R S E Y C P A • march • april 2 0 1 5
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approached by a recruiter for Merck,” notes Grant. “Merck was continually cited as a best place to work. Perhaps more importantly, it had a track record for breakthrough discoveries, notably focused now on a number of diseases including Alzheimer’s, which my dad passed away from and which my mother-in-law now suffers from.” Grant took the position at Merck and is today head of global security where he’s involved with personnel, investigations, anti-counterfeiting and protecting trade secrets. So, does someone who’s wanted to be an FBI agent since age six miss the action of the bureau? “There’s many a time I wake up in the middle of the night dreaming about the FBI,” says the New Jersey Society of CPAs member. “I’ve always been intrigued by people whose professions cause them to run to problems and not away from them, such as law enforcement, soldiers and firefighters.” Grant still contributes to the law enforcement community by sitting on the FBI/Homeland Security Domestic Security Alliance Council and the State Department’s Overseas Security Advisory Council. How does this Westfield resident unwind after a long day of thwarting those up to no good? “I enjoy really bad golf,” comments Grant. “And my wife and I are involved in animal rescue.” I guess helping two-legged creatures just isn’t enough for him.
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