CPA Report Third Edition 2013 by South Carolina Association of CPAs

Thi rd Edi tion 2 0 1 3 South Carolina Association of Certified Public Accountants

Special Technology Section

Plus... Meet Your 2013 Chair

New Volunteer Structure

Peer Review by the Numbers

Charleston

2430 Mall Drive, Suite 360

Greenville

843-884-3912

Charleston, SC 29406

864-245-8788

www.american-pensions.com

CPA Report South Carolina Association of CPAs

South Carolina Association of Certified Public Accountants Magazine Volume 43, Third Edition 2013 Officers sharon e. Mann, cPA, Chair John B. fennell, cPA, Chair Elect robert M. Tilton, cPA, Vice Chair Penny Lewis, cPA, Secretary – Treasurer Michael r. Putich, cPA, Immediate Past Chair BOArD Of DirecTOrs William R. Barefoot, CPA Patrick P. Carey Jr., CPA Zoe M. Davis, CPA Amanda (Mandy) T. Hallman, CPA Suzanne M. Harnois, CPA Lesley H. Kelly, CPA Cheryl O. Lang, CPA A.D. (Dave) Masters, CPA J. Patrick (Pat) McDermott, CPA James W. McIlrath, CPA Kenneth L. Newhouse Jr., CPA Philip R. Snipes, CPA Jason C. Sweatt, CPA William A. Thiem, CPA Beth T. Zamorski, CPA cHief eXecUTiVe Officer Erin Hardwick Pate, CAE MANAGiNG eDiTOr Maureen Taylor GrAPHic DesiGNer Lisa S. McGee cONTriBUTiNG wriTers Timothy L. Baker, CPA, CITP, CMA William R. Barefoot, CPA Reva Brennan, MPA, CAE, IOM Harris Darver, CPA Allyson DeHart, CPA Joel A Gibbons, CPA Jonathan Godwin, CPA Alan Leichtle, CPA Pat McDermott, CPA Erin Pate, CAE Thomas G. Stephens, Jr., CPA, CITP Maureen Taylor 2013 eDiTOriAL BOArD Charles E. Alvis, CPA, MPA, MBA, Chair Tim Baker, CPA John B. Brantley, CPA Robert Charles, CPA Amanda S. Colgate, CPA Lisa S. Cooke, CPA Lesley H. Kelly, CPA Margaret L. Lattimore, CPA A. D. “Dave” Masters, CPA Erin Hardwick Pate, CAE Derrick B. Stark, CPA

(888) 557-4814 | www.scacpa.org

Special Section: Technology 23 26 27 28 29 30 33

Selecting a Cloud Accounting Strategy for a Public Accounting Practice Thriving (Hopefully) in a New Environment Going Paperless….Not as Easy as 1, 2, 3 Tools You Can Use On the Go What is BYOD and Do I Want One? Reducing Fraud with Technology Member Profile: CITP a Natural Next Step for This CPA

In This Issue 4 10 11 12 15 16 18 19 20 35

Meet Your 2013 Chair 2013-14 Board of Directors New Volunteer Structure and Chairs 2013-2014 Thank You to Our 2012-13 SCACPA Volunteers Spring 2013 Meeting of AICPA Council YCPA Section Leadership is Changing – Do You Have What it Takes? Key Challenges Facing Entry-level Accounting Professionals SCACPA Members Make Their Voice Heard at CPA Day Peer Review by the Numbers

In Every Issue 4 7 8 34

From the Chair Association News On Your Behalf Welcome New Members

34 36 38 42

Member News Chapter Connections Upcoming CPE Advertiser Index

Statements of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers or members of SCACPA. Advertising rates will be furnished on request to SCACPA, 570 Chris Drive, West Columbia, SC 29169, (803) 791-4181. Publication of an advertisement in The CPA Report does not constitute an endorsement of the product or service by The CPA Report or SCACPA. South Carolina CPA Report

From the Chair “ I’ve received invaluable training from the committees and task forces I’ve served on, board leadership training such as the CPA Ambassador program and the AICPA leadership training which has made me more valuable to my company.” Q. Tell us about your experience as a CPA. Why did you choose the profession? What led you to business and industry? Choose the profession? It kind of chose me. I left the University of South Carolina and worked for a while. Then I went back to school at the University of Minnesota, took an accounting class and liked it. I returned to USC (it was too cold in Minnesota), and continued studying accounting. I had switched majors a few times before that and finally discovered something I really liked. After graduating from USC, I started off in public accounting with Derrick Stubbs & Stith. Four years later I decided to leave public accounting. I had worked in industry before finishing school and knew that was where I wanted to be. Tax season hours helped spur that along, but the hours in industry can be just as challenging at times. So, I went to work for Tri-County Home Health & Hospice and then Palmetto Health as director of finance. I left health care in 2000 to take the position as CFO at GIS and have been here ever since. Q. What has been the most rewarding part of your career? The most challenging? The most rewarding has been leading a great finance staff for the companies I have worked for and making a contribution to the success of those same companies. To see the growth in the employees as they have learned and progressed in their careers is reward-

South Carolina CPA Report

sharon Mann, cPA SCACPA Chair SCACPA member since 2000

ing as well. The most challenging was the downturn in 2008. Our business is based on employers hiring and employees changing jobs and the downturn had a definite impact on our business. We had to make decisions that affected staff such as benefits and reduced hours, which of course was hard on them as well as those making the decisions. Q. You have been involved in SCACPA leadership for a number of years. Why did you become a volunteer? When I started in public accounting, the partners encouraged me to attend Central Chapter meetings and state meetings. I met fellow CPAs and became friends with many at the different meetings and socials. Through that process I was asked if I would like to get involved in leadership with the Central Chapter. I did, and progressed through the officer positions to become president. At the same time, I also signed up to work on a committee for SCACPA. Q. What are some of your milestones and how has SCACPA impacted your career? The chapter appointed me to be its representative to the SCACPA Board. My very first duty was to serve on a task force which looked at the relationship between chapters and SCACPA, how it was working and what could be improved. The first thing we did was have SCACPA start taking the dues and registration for the chapters CPE. This was a huge

help. I can still remember while I was the Central Chapter treasurer sitting on my floor sorting deposits for CPE and social events to get to the bank. I was later elected to an at-large board position and then served in various officer positions. I’ve served on numerous committees and task forces. This has had an impact on my career in so many ways. I’ve received invaluable training from the committees and task forces I’ve served on, board leadership training such as the CPA Ambassador program and the AICPA leadership training which has made me more valuable to my company. I have made lifelong friendships with people I would not have had an opportunity to get to know if not for SCACPA. Q. What other community volunteer opportunities have you been involved in? My previous volunteer experience includes serving as treasurer of the National Kidney Foundation of S.C. and treasurer and chair of Palmetto Aids Life Support Services (PALSS). I received the Jefferson Award for my work with PALSS and the Outstanding Member in Business & Industry from SCACPA. I am a member of Westminster Presbyterian Church and have served as an elder, deacon and children’s Sunday School teacher. I have also served as chair of Friends of the Accounting Department at USC and a board member of SC Economics. I currently serve as the treasurer of the Harbison Housing Foundation, a nonprofit dedicated to

(888) 557-4814 | www.scacpa.org

serving the needs of the elderly in the Midlands, and on the IHS Yellow Jacket Club Board of Directors. As you can tell, I believe volunteer work is very important and rewarding. As has been said many times, I’ve received much more in return than I’ve given. Q. What do you see as the top issues facing the profession and the association? • Staying relevant and delivering value to the membership. • Addressing the changing landscape for our membership whether it be in the area of continuing education or legislative. • Pushing for issues that are important to the profession and citizens of the state and nation. • Retiring baby boomers – how is the gap going to be filled over the next 10 years? How will this affect our profession and in particular the members, firms and businesses in our state? • The national debt and lack of leadership in Congress. This affects the entire country – our competiveness is eroding away and this will definitely affect our profession. We can be leaders in this area pushing to help with the national voice on this issue. Q. How is the board’s strategic plan addressing these issues? Our five strategic goals directly address these issues, from looking at our CPE delivery and content to addressing our own governance to make sure our house, from the board to chapters, is structured and doing the things it needs to meet our mission. Each one of the five directly impacts the issues facing our profession and the members in our state.

(888) 557-4814 | www.scacpa.org

Q. As SCACPA chair, what are your top goals in the coming year? CPE content and delivery - specifically, helping to figure out how we will position ourselves in the area of facilities, content and delivery methods to carry us forward. Our long-range planning task force is heavily involved in looking at facility planning, smart classroom, etc. and I would like for a set plan to be put in place and acted upon, or to start acting upon, during my tenure. Also, staying on target

with the goals we’ve laid out through our strategic plan. If you could choose just one thing to accomplish, create or improve during your tenure what would it be? We have such a great staff at SCACPA. I would like to make sure that we retain them and give them the leadership and tools to keep them inspired in what they do for our members and the profession. It will all follow from there. n

favorite vacation spot? I love the beach and mountains and love to travel. Can’t say I have a favorite but Italy, Alaska & Hawaii are all at the top of the list. favorite book? I love to read so it’s hard to say. My favorite authors are Patricia Cornwall, Janet Evanovich, Vince Flynn and Kaled Hosseeni. Right now I’m reading And the Mountains Echoed by Hosseeni. what you do in your spare time? – Read, as you can tell from above, and travel, it’s one of our favorite things to do. I also watch tennis – I’m a tennis mom, go to USC football games in the fall and get on the lake in either the boat or jet skis. One thing people would be surprised to know about you. I seem to have gotten into the animal rescue area in the past two years. Since we moved to the lake I am constantly rescuing baby animals whether it be bunnies or squirrels, and also birds, although some of the rescue is from our two cats and dog. I’ve even had to save lizards and frogs. I draw the line at snakes, they can keep them. what inspires you? My husband, Steve, daughter, Rachel, and the rest of my family. God and my friends.

South Carolina CPA Report

GR WTH It’s what CGMA stands for. Officially, of course, it’s Chartered Global Management Accountant. A new designation representing accomplished professionals that drive and deliver business success, worldwide.

Find out more at cgma.org

(888) 557-4814 | www.scacpa.org

SCACPA

scAcPA cOO New President of scsAe

SCACPA COO Reva Brennan, MPA, CAE, IOM, was recently installed as president of the South Carolina Society of Association Executives for 2013-14. Brennan is the first African-American, non-CEO to serve as president. SCSAE is an organization of chief executive officers and professional staff who manage a variety of trade, professional and nonprofit associations as well as companies that provide products and services to the association community.

570 Chris Drive, West Columbia, South Carolina 29169 (803) 791-4181 or Toll-free (888) 557-4814 Fax (803) 791-4196 | www.SCACPA.org

To empower our members to grow professionally. We believe that by providing education, advocacy, communication, and leadership we will ensure our success.

Promoting the Profession

McDermott Named cPA of the Month

James Patrick (Pat) McDermott, CPA, CGMA, was selected as the July CPA of the Month for Start Here, Go Places. A program of the American Institute of CPAs, Start Here, Go Places is designed to inspire the next generation of CPAs. McDermott is controller/treasurer of The Beach Company, Charleston. A SCACPA member since 1982, he currently serves on the SCACPA Board of Directors and the Legislative and Advocacy Committee. He is also the South Carolina elected member to the AICPA Council.

For more on Start Here, Go Places, or to view the CPA of the month, visit www.startheregoplaces.com/ CLICK

Adkins Appointed to south carolina Board of Accountancy

Ellen K. Adkins, CPA, has been appointed to the South Carolina Board of Accountancy. A SCACPA member, Adkins is a partner in WebsterRogersâ&#x20AC;&#x2122; Summerville office. She specializes in audit and attest and management consulting services for governmental entities, not-for-profit organizations and small to medium-sized manufacturers, contractors, retailers and service enterprises. Adkins also serves as the quality review partner for the firm and is responsible for the design and maintenance of all quality control policies and procedures. She is a member of the American Institute of Certified Public Accountants (AICPA) and serves on the AICPA Professional Ethics Committee Technical Standards subcommittee. Adkins has served on multiple SCACPA committees including the Technical Standards Committee, Peer Review Committee, Behavioral Standards Committee, Audit Committee and the Editorial Board Task Force. n

(888) 557-4814 | www.scacpa.org

Erin Hardwick Pate, CAE Chief Executive Officer Ext. 104, epate@scacpa.org Reva E. Brennan, MPA, CAE, IOM Chief Operating Officer Ext. 103, rbrennan@scacpa.org Karen M. Hancock, CPA Finance Director Ext. 108, khancock@scacpa.org Maureen Taylor Marketing and Member Services Director Ext. 105, mtaylor@scacpa.org Glenna P. Osier Peer Review Manager Ext. 107, gosier@scacpa.org April C. Cox Education Manager Ext. 110, acox@scacpa.org Sandra P. Oxner, CMP, CMMM Chapter & Special Events Manager Ext. 112, soxner@scacpa.org Kristi Niro Membership & Communications Coordinator Ext. 106, kniro@scacpa.org

South Carolina CPA Report

On Your Behalf For the profession, by the profession – that’s what the South Carolina Association of CPAs is all about. SCACPA’s board of directors, committees and task forces, and Young CPAs Leadership Cabinet are hard at work making decisions, providing guidance and embarking on projects and programs that strengthen the profession and enable members to improve their knowledge, network and technical skills. LeGisLATiVe UPDATe For the 2013 state legislative session, SCACPA created goals or a legislative “agenda” for its work on behalf of CPAs and the profession. Following are the agenda items and the outcomes of each. 1. Reduce risk to both the public and the profession by initiating legislation to seek operational and fiscal autonomy for the S.C. Board of Accountancy House Bill 3459, the SCACPA-initiated Board of Accountancy (BOA) bill included a provision for dedicated staff for the board, exempted CPAs from the private investigator requirement and included cleanup language regarding license renewal for accounting practitioners. The bill was stopped the last day of the legislative session in the Senate when Sen. Gerald Malloy (Darlington) prevented the bill from receiving third and final reading. We are unsure at this time why Sen. Malloy chose to stop the bill, however we will work over the coming weeks to understand his concerns and use the summer and fall to prepare for the bill’s passage in 2014. H. 3459, a compromise from our original interest in creating an independent BOA, addressed some of SCACPA’s main concerns by dedicating an administrator and investigator, both of whom would have to be CPAs. Rep. Bill Sandifer (Oconee), chair of the House LCI Committee, was the bill sponsor and our champion in the House. The bill flew through the committee process and received a 110-0 favorable vote in the House. The Senate was another matter. Some members of the Senate LCI Subcommittee had concerns about the bill, but thanks to CPAs serving as Key Person Contacts (KPC) – Kathryn Greene Heeney, Will Russell and Kendall Erickson – the senators were convinced to support the bill. On the floor of the Senate other concerns were expressed, which delayed the bill. KPC Wanda Scott was instrumental in voicing SCACPA’s position with the senator holding up the bill’s progress. Ultimately, we got the bill through second reading in the Senate only to be thwarted at the 11th hour.

South Carolina CPA Report

Many thanks go to Reps. Bill Sandifer (Oconee) and Shannon Erickson (Beaufort), and Sens. Thomas Alexander (Seneca), Billy O’Dell (Greenwood), Kevin Bryant (Anderson) and Shane Massey (Edgefield) for their leadership and support. 2. Close an unintended loophole, by initiating legislation that will exempt CPAs from the requirement to become licensed as a private investigator if they perform forensic services for clients This provision was part of House Bill 3459 that did not make it through the Senate in the 2013 session. 3. Facilitate conforming of the state tax code with the federal tax code, by actively lobbying for the passage of the Department of Revenue’s tax conformity legislation Tax conformity is legislation most tax professionals want to see passed early in the calendar year to give them certainty about the rules, no matter what the rules are. That’s why SCACPA has made this an annual priority. This year was more challenging than usual, mostly due to the federal fiscal cliff and related actions at that level. Due to the phase out of certain deductions which resulted in a moderate tax increase for high income earners, Republican senators resisted supporting the bill, while Democrats accused them of protecting the rich. Tax conformity legislation became a political football thus taking nearly six weeks to pass the Senate. Using a special procedure, the House dispensed with conformity legislation in less than a week. The governor signed it into law on March 9. When this legislation was stalled in the Senate, many Key Person Contacts were asked to contact their senator to urge action. Thanks goes to John Camp, Pat Carey, Mark Hobbs, Bill Robinson, Janene Schmidt, Jim Lollis, Kathryn Greene Heeney, Steve Miller, Bernie Ackerman and Deanna Cochran for making contact with their senators and letting us know.

(888) 557-4814 | www.scacpa.org

A special thanks to Sens. Hugh Leatherman (Florence) and Billy O’Dell (Greenwood) and Rep. Brian White (Anderson) for their leadership and support of tax conformity legislation. 4. Provide leadership for members in tax preparation working with senior members of the S.C. Department of Revenue to address a wide range of issues. Meeting quarterly with the SCDOR director and his senior staff has proved fruitful by fostering open dialogue about what works and what does not work for CPAs in practice. Much of the conversation with the department over the past nine months has been around the data breach and how they are shoring up their systems. We’ve received regular, detailed updates throughout the process, including a watch for a new growing scam – criminals filing using stolen W2s to file false returns for refund.

the numerous and wide-ranging issues facing the profession and firms. “Larger firm managers, while in a competitive market, benefit from knowing each other better,” said Erin Pate, SCACPA CEO. “We are delighted to offer a forum in which this can happen.” Small Firms Conference Smaller firms and sole practitioners are the backbone of the profession. Realizing this, SCACPA has created a Small Firms Conference, scheduled for Oct. 17. While conference planning is still under way, session topics include technology, ethics of peer review and financial reporting framework for small and medium sized entities. Updated information will be available on the SCACPA website. n Erin Hardwick Pate, CAE, has served as SCACPA’s CEO since 2005. She currently serves as president of the CPA Society Executives Association, a member of the S.C. Secretary of State’s Nonprofit Advisory Council and Francis Marion University Advisory Council for the Non-Profit Leadership Institute.

E-filing did not seem to take a hit despite the public concerns about data security. Some 16,000 more individual returns were e-filed this year over last, for a total of 1.6 million or 74 percent of total returns. Sixtysix percent of these returns are filed by a preparer. Seventy percent of refunds were direct deposited, 30 percent were paper checks and 2 percent were debit cards. Corporate return filing was up too – 33,000 more this year which is a 21 percent increase. The DOR has asked if there are schedules not currently e-filed that should be – like extensions and amended returns. The DOR would like to see more individuals file their estimates electronically; only six percent do this now. SCACPA has long advocated for the ability to e-file partnership returns and at the most recent meeting with the DOR this was a major topic of conversation. We will continue to press the department to make this a priority. South Carolina Firm Managers Gather On May 13, SCACPA hosted some 17 managing partners of mid-sized and larger firms in South Carolina for a meeting that offered time for networking and professional development. Held at the Columbia office of Elliott Davis, participants were briefed on state legislative issues and SCACPA’s activities. Bob Wilson, Elliott Davis’ director of human resources, gave a presentation on the firm of the future. AICPA CEO Barry Melancon gave an overview of

(888) 557-4814 | www.scacpa.org

Takin ingg a Ca Case to to IRS IR S Appe Appeaals? Don’’t go it Don it alone. alone. Richardson Plowden attorneys not only assist taxpayers and their CPAs with preparing protests of proposed assessments and penalties; they also provide evaluations of potential resolutions with IRS Appeals based on the facts, law, choice of tax dispute forums, and the hazards of litigation.

Contact Tony Rebollo, Tax Controversy Attorney trebollo@richardsonplowden.com 803.576.3722

Columbia 1900 Barnwell St.

Myrtle Beach 2103 Farlow St.

Charleston 40 Calhoun St., Suite 220

www.RichardsonPlowden.com exper xperienc ience ema matt tters ers

South Carolina CPA Report

SCACPA 2013-14 Board of Directors

Michael R. Putich Robinson Grant & Co., PA Hilton Head Island Immediate Past Chair

Sharon E. Mann General Information Services Inc. Chapin Board Chair

John B. Fennell Burroughs & Chapin, Inc. Myrtle Beach Chair Elect

Robert M. Tilton WebsterRogers LLP Florence Vice Chair

Penny Lewis Penny A. Lewis, CPA, PA Isle of Palms Secretary - Treasurer

William R. Barefoot WebsterRogers Florence Pee Dee Chapter Rep.

Patrick P. Carey Jr. Carey & Company, PA Hilton Head Island Sea Island Chapter Rep.

Zoe M. Davis Hubbard Davis CPAs, LLP Mount Pleasant Coastal Chapter Rep.

Amanda (Mandy) T. Hallman CMAC Inc./ Loganâ&#x20AC;&#x2122;s Roadhouse Myrtle Beach Grand Strand Chapter Rep.

Lesley H. Kelly McGregor & Company, LLP Columbia Central Chapter Rep.

Cheryl O. Lang Tindall Corporation Spartanburg Foothills Chapter Rep.

A.D. (Dave) Masters Derrick Stubbs and Stith, LLP Columbia At Large Director

J. Patrick (Pat) McDermott The Beach Company Charleston AICPA Elected Council Member

James W. McIlrath Duncan, Farmer, Munden, McIlrath & Co. Myrtle Beach At Large Director

Kenneth L. Newhouse Jr. Moore Beauston & Woodham, LLP, CPAs & Consultants West Columbia At Large Director

Philip R. Snipes Ernst & Young, LLP Greenville Piedmont Chapter Rep.

Jason C. Sweatt Ernst & Young, LLP Greenville At Large Director

William A. Thiem Thiem & McCutcheon, CPAs, PA Charleston At Large Director

Beth T. Zamorski Todd, Bremer & Lawson, Inc. Rock Hill Catawba Chapter Rep.

South Carolina CPA Report

Suzanne M. Harnois Bernard N. Ackerman, CPA, PA Rock Hill At Large Director

(888) 557-4814 | www.scacpa.org

New Volunteer Structure and Chairs 2013-2014

s part of its strategic plan, the SCACPA Board of Directors evaluated the association's more than 80 distinct programs and services including committees and task forces. As a result, the board reengineered a number of committees and task forces in order to engage more members for shorter-term, project-based opportunities. Following is a list of current opportunities. n Committees: m Standing Committees: A group of members, appointed by the Board, to whom a matter is referred, or is committed for attention, investigation, analysis, or resolution. A standing or permanent committee is intended to continually consider all matters pertaining to a certain subject. Meets at regular intervals throughout the year. • Audit Committee – William Barefoot • Political Action Committee – Steve Mann • Finance Committee – Robert Tilton • Nominating Committee – Sylvia Kitchens m Other Committees: A group of members, appointed by the Board, to whom a matter is referred, or is committed for attention, investigation, analysis, or resolution. Other committees meet regularly but do not exist due to a constitutional mandate; therefore, they can be dissolved should the purpose no longer meet a need. • Accounting Careers and Academic Relations Committee – Tim Baker • Behavioral Standards Committee – TBD • Continuing Professional Education Committee – Russ Madray • Legislative, Advocacy and Regulatory Committee – Todd Dailey • Members in Business & Industry Committee – Amanda Koehler • Peer Review Committee – Christina Kelly • Taxation Committee – Brian Johnson n Special Interest Forum: A forum of like-minded

members who meet periodically as needed to share information, ideas and views and to undertake projects, if needed • Business Valuation and Forensic & Litigation Services Forum • Information Technology Forum

n Action Team: Similar to task forces, but designed to

be even shorter in scope and duration. May or may not actually have a meeting. May be asked to provide work individually and/or electronically. Staff has the authority to create action teams to meet a need, i.e. Conference Action Team to assist with speaker introductions and registration, Social Media Action Team to promote programs and services, and create networking among members. • Benefits Action Team • Conference Planning Action Teams • Membership Action Team n Roundtable or Council: Made up of members with a common specialty or practice area. Meets generally one to two times a year to discuss issues and ideas. Generally does not take on projects but may provide direction to Association on initiatives. • Managing Partners Roundtable – Dave Masters *Ed Fund and YCPAs are additional volunteer opportunities that don’t fit into the above structure. n

2013 VOLUNTEER OPPORTUNITIES Connect, Make a Difference, and Grow. SCACPA volunteer opportunities offer more ways for you to give back to your community and profession: • Committees, task forces, action teams • Governmental affairs opportunities • Community outreach and student initiatives • Professional education and networking events • Communications To connect, make a difference and grow signup today at www.scacpa.org/getinvolved.

n Task Force: Temporary group of members formed to carry out a specific project or to solve a problem. Meets as needed for the duration of the project. • Editorial Board Task Force – Charles Alvis • Long Range Planning Task Force – Dave Masters

(888) 557-4814 | www.scacpa.org

South Carolina CPA Report

THANK YOU to Our 2012-13 SCACPA Volunteers Accounting Careers & Academic Relations Task Force

Sherri Lynn Freudiger, CPA - Sherri L. Freudiger, PA - Chair Timothy L. Baker, USC -Darla Moore School of Business Steven N. Blanton, Norman Johnson & Co., PA William L. Byrd, William Levan Byrd, CPA, PC Lindsay R. Campbell, AVX Corporation Benjamin Cartwright, Dixon Hughes Goodman, LLP Clarence Coleman Jr., Winthrop University Matthew Thomas Foreman, ScanSource, Inc. Amanda T. Hallman, CMAC, Inc. D/b/a Logan's Roadhouse * Christopher Joy, The Hobbs Group, PA Charles P. McSwain Jr., M & H, LLC

Audit Committee

Robert M. Tilton, WebsterRogers LLP - Chair Timothy L. Baker, USC - Darla Moore School of Business William R. Barefoot, WebsterRogers LLP John Bratton Fennell, Burroughs & Chapin Company, Inc. Sharon E. Mann, General Information Services Inc. Michael Joseph Targia, Moore Beauston & Woodham, LLP, CPA & Consultants *

Awards Task Force

Rebecca A. Kerr, University of SC, Darla Moore School of Business - Chair Phyllis B. Buie, SC Public Employer Benefit Authority Lillian E. Gonzalez, Wofford College J. Louis Grant, Robinson Grant & Co., PA Cheryl Ottinger Lang, Tindall Corporation H. McRoy Skipper Jr., WebsterRogers, LLP Mark E. Vinson, HopeHealth, Inc. Beth T. Zamorski, Todd, Bremer & Lawson, Inc. *

Behavioral Standards Committee

John Bratton Fennell, Burroughs & Chapin Company, Inc.* - Chair Kenneth Todd Dailey, Derrick Stubbs and Stith, LLP Harry B. Gregory Sr., Harry B. Gregory & Associates, CPAs Kathryn Greene Heeney, Greene Heeney & Associates Mark T. Hobbs, The Hobbs Group, PA Douglas A. Snyder, SC Office of Rural Health Jason C. Sweatt, Ernst & Young, LLP Charles L. Talbert III, WebsterRogers LLP

John Bratton Fennell, Burroughs & Chapin Company, Inc. - Chair Timothy L. Baker, USC, Darla Moore School of Business Charles E. Brown, SwaimBrown, PA * Sharon E. Mann, General Information Services Inc. Michael R. Putich, Robinson Grant & Co., PA Robert M. Tilton, WebsterRogers LLP

Financial Literacy Task Force

Hendrikus E. Van Bulck, Van Bulck & Company, CPAs Chair George W. DuRant, DuRant, Schraibman & Lindsay, LLC Colleen M. Fellows, CMF Advisors LLC Charles Arden Gatchell Stephen A. Graham, A. Dowl Knight, CPA, PC Suzanne M. Harnois, Bernard N. Ackerman, CPA, PA * Larry A. Ramsey, Larry A. Ramsey, CPA/ABV, CVA Christopher G. Samellas, 11th Circuit Solicitor's Office Catherine B. Stoddard, Dixon Hughes Goodman, LLP Abner Calhoun Witham Jr., Witham Financial Advisors

CPE Committee

Information Technology Committee

Christina R. Kelly, The Hobbs Group, PA - Co-chair Rebecca Monroe Lee, Sheheen Hancock & Godwin, LLP â&#x20AC;&#x201C; Co-chair Gary Scott Austin, Austin Business Consulting Group, LLC Charles E. Brown, SwaimBrown, PA * Lesley H. Kelly, McGregor & Company, LLP Sheila S. Morgan, McAbee Talbert Halliday & Company Ethel C. Pettigrew, Whitener, Pettigrew and Company, LLC David Reid Rosenberg, David R. Rosenberg, CPA, LLC

Editorial Board Task Force

Benefits Committee

Educational Fund

South Carolina CPA Report

Finance Committee

Kenneth L. Newhouse Jr., Moore Beauston & Woodham, LLP, CPAs & Consultants - Chair Sylvia Cora Jean Wood Amaya, Roper Saint Francis Healthcare Zoe M. Davis, Hubbard Davis CPAs, LLP * Anne Poag Harty, City of Rock Hill Cynthia Lousie Johnson, Burroughs & Chapin Company, Inc. Ryan Andrew Johnson, Wofford College Renita M. Owens, Renita M. Owens, CPA, LLC Uvette Pope Rogers, The Childrens Trust of SC Lynn R. Sherlock, PricewaterhouseCoopers, LLP Catherine B. Stoddard, Dixon Hughes Goodman, LLP Pamela P. Turner, Francis Marion University School of Business

Business Valuation and Forensic and Litigation Task Force

Lewis E. Dutton, Cherry Bekaert & Holland, LLP - Chair Ellen K. Adkins, WebsterRogers LLP George W. DuRant, DuRant, Schraibman & Lindsay, LLC John Bratton Fennell, Burroughs & Chapin Company, Inc. Roger W. Fountain, Endeavor Insurance Services, Inc Kevin S. Light, Palmetto Brick Co. A. David Masters, Derrick Stubbs and Stith, LLP * Lamar J. Rabon, Rabon & Rabon, CPAs, LLC William Ashley Thiem, Thiem & McCutcheon, CPAs, PA Hendrikus E. Van Bulck, Van Bulck & Company, CPAs Carolyn L. Williams, Carolyn L. Williams, CPA, LLC

James W. McIlrath, Duncan, Farmer, Munden, McIlrath & Co. *- Chair William L. Byrd, William Levan Byrd, CPA, PC Kendall F. Erickson, Robinson Grant & Company, PA Danny M. Holcombe, Holcombe & Associates, LLC Walda C. Wildman, Walda C. Wildman, LLC

Board of Accountancy Autonomy Task Force

Charles E. Alvis, Winthrop University - Chair Timothy L. Baker, USC, Darla Moore School of Business * John B. Brantley, Central Electric Power Cooperative Robert Cagney Charles Amanda S. Colgate, Godshall & Colgate, LLC Lisa S. Cooke, John Shell Associates, Inc. Lesley H. Kelly, McGregor & Company, LLP Margaret L. Lattimore, SC Education Lottery A. David Masters, Derrick Stubbs and Stith, LLP Derrick B. Stark, MiraVista LLC

Angela W. Hamilton, Lee Broome MacBay & Associates, LLC - Chair Patrick P. Carey Jr., Carey & Company, PA * Jeffrey L. Deason, York County Natural Gas Authority Sheryl McAlister, GSESC William C. Robinson, Robinson Grant & Company, PA Charles L. Talbert III, WebsterRogers LLP

Keith M. Vincent, Keith M. Vincent, CPA - Chair Scott Robert Abrams, Toshiba America Nuclear Energy Timothy L. Baker, USC - Darla Moore School of Business * Mathew Alan Nesbett, IH Services Donald P. West, Donald P. West, CPA, LLC

Investment Committee

Valerie E. Rumbough, Baptist Foundation of S.C. - Chair John Bratton Fennell, Burroughs & Chapin Company, Inc. * Sheryl McAlister, GSESC

Legislative & Advocacy Committee

Jason C. Sweatt, Ernst & Young, LLP - Chair John F. Camp, Camp Moring & Cannon, LLC Stephanie L. Denham, Pathology Service Associates, LLC Nancy W. Drummond, Elliott Davis, LLC Harry B. Gregory Sr., Harry B. Gregory & Associates, CPAs, Kathryn Greene Heeney, Greene Heeney & Associates Samuel Hunter Howard Jr., Scott & Company, LLC James E. Lollis, James E. Lollis, CPA Sharon E. Mann, General Information Services Inc. * Linda L. May J. Patrick McDermott, The Beach Company Kenneth L. NewhouseJr., Moore Beauston & Woodham, LLP, CPAs & Consultants

(888) 557-4814 | www.scacpa.org

Legislative & Advocacy Committee, conâ&#x20AC;&#x2122;t

Steven Charles Rau, Moore Beauston & Woodham, LLP, CPAs & Consultants Charles W. Schulze, Elliott Davis, LLC Douglas A. Snyder, SC Office of Rural Health Marshall Stein, Elliott Davis, LLC Charles L. Talbert III, WebsterRogers LLP William Ashley Thiem, Thiem & McCutcheon, CPAs, PA Maria Ekaterina Walls, Beaufort County James Manly Ward, James M. Ward, CPA, PC Carolyn L. Williams, Carolyn L. Williams, CPA, LLC

Long Range Planning Task Force

A. David Masters, Derrick Stubbs and Stith, LLP * - Chair Roxanne Rich Caldwell, Dixon Hughes Goodman, LLP Timothy L. Baker, USC - Darla Moore School of Business Samuel Wilds Howle, Elliott Davis, LLC Christina R. Kelly, The Hobbs Group, PA Sharon E. Mann, General Information Services Inc. Charles M. Redfern III, Charles M. Redfern, CPA

Managing Partners Task Force

A. David Masters, Derrick Stubbs and Stith, LLP * - Chair Bernard N. Ackerman, Bernard N. Ackerman, CPA, PA Joseph T. Argo, Argo and Associates, LLP Robert M. Baldwin, Baldwin & Associates, LLC Mark E. Ballew, Grant Thornton, LLP Kenneth H. Bauknight, Bauknight Pietras & Stormer, PA John B. Beauston, Moore Beauston & Woodham, LLP, CPAs & Consultants Michael R. Bookhout, Smith Sapp Bookhout Crumpler & Calliham, PA Kerry R. Brown, Brittingham, Brown, Prince & Hancock LLC, CPAs Roy F. Burch Jr., Burch Oxner Seale Company, CPAs, PA Donald H. Burkett, Burkett, Burkett & Burkett, CPA, PA J. Bradley Campbell, Cherry Bekaert & Holland, LLP R. Jason Caskey, Elliott Davis, LLC Roger B. Clinkscales, Bradshaw Gordon & Clinkscales, LLC Richard E, Davis, Elliott Davis, LLC Edward M. Farmer, Duncan, Farmer, Munden, McIlrath & Co Terri Grayson-Caprio, KPMG LLP Melonie H. Hammond-Trace, Elliott Davis, LLC Mark T. Hobbs, The Hobbs Group, PA James Scott Keim, SwaimBrown, PA Dick W. King, Pope Smith Brown & King, PA Stephen D. Kirkland, Kirkland, Thomas, Watson & Dyches, LLC Terry D. Knause, Deloitte & Touche, LLP Donald J. Mobley, Scott & Company, LLC Shelia D. Pace, Pearlstine Family Companies Michael R. Putich, Robinson Grant & Co., PA Julian Hartridge Roberts Jr., Welch Roberts & Amburn, LLP Annette H. Ross, J.W. Hunt & Company, LLP Terry K. SchmoyerJr., Schmoyer and Company, LLC Charles W. Schulze, Elliott Davis, LLC Gerald D. Skipper, McGregor & Company, LLP Philip R. Snipes, Ernst & Young, LLP

(888) 557-4814 | www.scacpa.org

Charles L. TalbertIII, WebsterRogers LLP Daryl W. Taylor, Sheheen Hancock & Godwin, LLP Michael D. Trammell, Dixon Hughes Goodman, LLP Debra A. Turner, WebsterRogers LLP Dennis Vick, Dixon Hughes Goodman, LLP Raymond E. Warco, WebsterRogers LLP Patricia B. Wilson, Dixon Hughes Goodman, LLP Margaret G. Young, PricewaterhouseCoopers, LLP

Members in Business & Industry Task Force

Stacy L. Daniel - Chair Jason Bassham, Nucor Corporation Vulcraft Group Florence Division Susan J. Cribbs, Wesley Commons Robert D. Capell Jr., ZF Transmissions Gray Court, LLC Jeffrey Fitzharris, Environmental Express, Inc. Ryan D. Foster, UCI Medical Affiliates Tanya Green Greenlee, Burroughs & Chapin Company, Inc. Amanda Brooke Koehler, Turner Padget Graham & Laney, PA Cheryl Ottinger Lang, Tindall Corporation * Robert Alan Leichtle II, General Information Services Inc. Michael J. Osmundson, Bearing Distributors, Inc. Rebecca F. Richardson, Palmetto Health

Membership Committee

Gary J. Johnson, Norman Johnson & Company, PA Robert P. Jordan, Hill & Jordan, LLC, CPAs Christina R. Kelly, The Hobbs Group, PA Rebecca Monroe Lee, Sheheen Hancock & Godwin, LLP Susan B. McCracken, Dixon Hughes Goodman, LLP Sheila S. Morgan, McAbee Talbert Halliday & Company Howard M. Nichols, Howard Nichols, CPA Michael R. Putich, Robinson Grant & Co., PA * David G. Phillips, Greene Finney & Horton, LLP Dean L. Richardson, McGregor & Company, LLP Monica L. Rockwell, Cox, Cauley & Rockwell, LLC James M. Stewart Jr., Waring & Associates, CPAs, PA Terry K. Schmoyer Jr., Schmoyer and Company, LLC Randolph B. Thomas, McAbee Talbert Halliday & Company

Personal Financial Planning Task Force

Marsha G. LePhew, Marsha G. LePhew, CPA, PC - Chair Neil A. Brown, Burkett Financial Services, LLC Meyer Drucker John J. Leahey, WebsterRogers LLP Penny Lewis, Penny A. Lewis, CPA, PA * Kevin Mark Tomas, Greene Finney & Horton, LLP Nancy R. Waring, Waring & Associates, CPAs, PA

Taxation Committee

Douglas A. Snyder, SC Office of Rural Health - Chair John F. Camp, Camp Moring & Cannon, LLC Steven M. Mann, Sumter School District J. Patrick McDermott, The Beach Company * Michael R. Putich, Robinson Grant & Co., PA Victor C. Webster, WebsterRogers LLP

Charles M. Ayers, McDowell-Pearman, LLC - Chair William R. Barefoot, WebsterRogers LLP * Donna Lee Bordeaux, Bordeaux & Bordeaux, CPAs, PA William L. Byrd, William Levan Byrd, CPA, PC Michelle Comeaux, Blue Cross Blue Shield of SC James M. Cudd, James M. Cudd, CPA, LLC Kenneth Todd Dailey, Derrick Stubbs and Stith, LLP Michelle K. Florine, Derrick Stubbs and Stith, LLP Richard A. Gregory, Harry B. Gregory & Associates, CPAs Brandon J. Hoffman, Hoffman & Hoffman, CPA, PA W. Edward Howard Jr., W. Edward Howard Jr., Attorney at Law Brian Loftis Johnson, Suggs Johnson, LLC Harold W. Jones, Jones Pounder & Associates Kenneth L. Newhouse Jr., Moore Beauston & Woodham, LLP, CPAs & Consultants Sara B. Penn, Sara B Penn, CPA James M. Stewart Jr., Waring & Associates, CPAs, PA Caroline D. Strobel, USC - Darla Moore School of Business Gayle H. Wenzel, Gayle H. Wenzel, CPA Maurice A. White, Maurice A. White, CPA

Peer Review Committee

Technical Standards Committee

William Harold Jarrard, Jarrard, Nowell & Russell, LLC - Chair Penny Lewis, Penny A. Lewis, CPA, PA * Larry B. Mack, Mack Consulting, LLC Carolyn L. Williams, Carolyn L. Williams, CPA, LLC

Nominating Committee

J. Patrick McDermott, The Beach Company * - Chair Timothy L. Baker, USC , Darla Moore School of Business Charles E. Brown, SwaimBrown, PA Sylvia L. Kitchens Charles M. Redfern III, Charles M. Redfern, CPA

PAC Committee

C. Thomas DeWitt, Robinson Grant & Co., PA - Chair Joseph Stanton Beck II, Jones Pounder & Associates Matthew A. Brown, Brown, CPA, LLC Thomas D. Childers Jr., Elliott Davis, LLC Karen A. Currin, Phillips,Currin & Company, CPA's, LLC Thomas E. Fitzsimmons, WebsterRogers LLP Dennis L. Gore, Dennis L. Gore, CPA, LLC Brandon J. Hoffman, Hoffman & Hoffman, CPA, PA Carol S. Hubbard, Hubbard Davis CPAs, LLP

Joseph Stanton Beck II, Jones Pounder & Associates Chair Ellen K. Adkins, WebsterRogers LLP Thomas D. Childers Jr., Elliott Davis, LLC Brandon J. Hoffman, Hoffman & Hoffman, CPA, PA Jay J. Jacobs, Jay J. Jacobs, CPA Penny Lewis, Penny A. Lewis, CPA, PA * Gregory P. McLain, Benefitfocus.com, Inc. * Denotes board liaison

South Carolina CPA Report

When your firm is ready, there’s a path to follow. The Premier Plan. As your firm grows, so do your risks. So when it’s time to decide how to protect your firm, it’s important to choose professional liability insurance that can address the evolving needs of your business. When you choose advanced coverage offered through the AICPA Premier Plan, you have options. Available liability limits range from $100,000 to $10 million, with 28 deductible options for qualified firms. When you choose the AICPA Premier Plan, you’re on the right path to your firm’s future.

Contact Charles Cauthen at BB&T Insurance Services, Inc. today at (888) 868-3721 or (704) 954-3033 Endorsed by:

Endorsed by:

Underwritten by:

Brought to you by:

Aon Insurance Services is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc.; (AR 244489); in CA, MN & OK, AIS Affinity Insurance Agency, Inc. (CA 0795465); in CA, Aon Affinity Insurance Services, Inc., (0G94493), Aon Direct Insurance Administrator and Berkely Insurance Agency and in NY and NH, AIS Affinity Insurance Agency. One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. The statements, analyses and opinions expressed in this publication are those of the respective authors and may not necessarily reflect those of any third parties including the CNA companies. CNA is a service mark registered with the United States Patent and Trademark Office. Copyright © 2013 CNA. All rights reserved. E-9002-113 SC

Spring 2013 Meeting of AICPA Council by Pat McDermott, CPA SCACPA member since 1982

he 2013 Spring AICPA Council was held in Washington, D.C. May 19-21 and featured a full agenda. As the South Carolina elected member to council, I had the opportunity to attend along with SCACPA Board Chair Michael Putich, Chair-elect Sharon Mann, Vice Chair Bratton Fennell, SCACPA CEO Erin Pate and COO Reva Brennan. As is the case when council meets in Washington every other year, many of the speakers we heard from were politicians or political media personalities, who shared their perspective on the political landscape in 2013. Of particular interest were two of the newest members of the House who are both CPAs - South Carolina Rep. Tom Rice and Rep. Patrick Murphy of Florida. Three items required a vote, all of which passed unanimously. They included: a vote on the new definition of attest services; a vote to allow AICPA credentials to be offered internationally; and approval of the 2013-14 AICPA budget, which includes a nominal dues increase across all membership categories.

“To have a sitting member of Congress sit with you and explain the inner workings of the body is truly educational, and not something this smalltown guy gets to do very often. It truly was the highlight of my visit this year.” At the conclusion of the meetings on Tuesday, we were asked to make visits to Capital Hill to meet with our senators and congressmen and present the AICPA message on topics of interest. Erin and Reva had arranged meetings at four of our congressmen’s offices and both of our senators’. We presented information on the topics of: Tax Return Due Date Reform (S.420 & HR 901); the Mobile Workforce State Income Tax Simplification Act of 2013 (HR1129), and Municipal Advisor Oversight Improvement Act of 2013 (HR797). We also made staff aware of AICPA’s availability for providing information with regard to Comprehensive Tax Reform. We had very positive feedback from all the congressional staff members we met with. After our meeting with Rep. Rice, who was headed to the House floor for a vote, Michael, Sharon, Bratton and I were asked to have a seat in the House gallery while the congressman voted. After recording his vote on the bill, Rep. Rice joined us in the gallery for a brief period where he explained many items of interest to the four of us. To have a sitting member of Congress sit with you and explain the inner workings of the body is truly educational, and not something this small-town guy gets to do very often. It truly was the highlight of my visit this year. n

J. Patrick McDermott, CPA, CGMA, serves as controller/ treasurer of The Beach Company , Charleston. He is a member of the SCACPA Board of Directors and the Legislative and Advocacy Committee.

Pictured left: Chair-elect Sharon Mann, Vice Chair Bratton Fennell, Senator Tim Scott, AICPA Elected Council Member Pat McDermott and SCACPA Board Chair Michael Putich. (888) 557-4814 | www.scacpa.org

South Carolina CPA Report

Young

CPA From the Chair Harris Darver, cPA YCPA Chair SCACPA member since 2008

Welcome

to the YCPA section of the CPA Report. This quarterly feature section is designed to keep you informed about upcoming events, news and articles of interest that impact young CPAs. It is truly a work in progress, spearheaded by SCACPA’s YCPA Leadership Cabinet. In 2012, we launched the Young CPAs Network. The network is designed to bring young CPAs together to exchange ideas, network, and advocate and encourage individual and professional growth. The Young CPA section of the magazine is just the first step in communicating directly to SCACPA’s young professionals. In the coming months we will also be launching a quarterly e-newsletter for network members, designed by young CPAs. Melissa Barbour, CPA, of WebsterRogers LLP, Charleston, is chairing the newly-formed communications committee. As you can see from the committee reports that follow, the cabinet has been hard at work. All of our committees have been actively involved in the Emerging Leaders Conference, our largest event of the year. The conference is a great opportunity to earn 16 hours of CPE, all of which are geared toward young CPAs. The curriculum includes both “technical” and “soft-skill” courses to help young CPAs acquire the competencies to excel as a CPA and as a leader.

If you are a CPA under the age of 35 and have not yet done so, I encourage you to join the YCPAs. With the substantial benefits you will receive, the membership fee of $30 is a great investment in your professional growth. Remember, this is your network. If you have story ideas, suggestions for CPE or an idea for a social event, please contact me or one of the committee chairs. n

South Carolina CPA Report

cOMMiTTee rePOrTs cPe cOMMiTTee The 2013 Emerging Leaders Conference is set for Aug. 22-23 at the Marriott Columbia. If you are looking to grow and develop the essential skills to further your career in the CPA profession, then this is the event for you! The YCPA CPE Committee and SCACPA have worked extremely hard to make this a successful and valuable event for today’s rising leaders. The conference offers both technical and leadership skills that will help you become a stronger and more effective CPA and leader. We encourage all young CPAs to attend the conference and also take part in our networking event on Aug. 22. This is a great opportunity to meet CPAs from around the state and exchange ideas. We look forward to seeing you there! Allyson DeHart, CPA - Chair Allyson@hobbscpa.com

cOMMUNiTY serVice cOMMiTTee The Community Service Committee of the YCPA Cabinet is in charge of organizing an event every year for the YCPA Cabinet members to participate in to benefit the community. In prior years we have assisted various charitable organizations such as Lowcountry Orphan Relief in North Charleston and Project Host Soup Kitchen in Greenville. In the future, the committee plans to work with other charities throughout the state to provide support for those in need. Members of the YCPAs will receive updates on community service activities of the YCPA Cabinet as well as other community service opportunities in their area. SCACPA is currently working to organize a community service initiative for all CPAs to participate in throughout South Carolina. YCPA members will receive information on what fellow young CPAs are doing in their region in regards to this initiative. Joel A. Gibbons, CPA - Chair jgibbons@websterrogers.com (888) 557-4814 | www.scacpa.org

2013-14 YCPA Leadership Cabinet executive committee PrOMOTiONs AND sOciAL cOMMiTTee The Promotions and Social Committee has the responsibility of creating networking events at various meetings and promoting the events to raise attendance. All young CPAs are invited to attend the next event which will be held in conjunction with the Emerging Leaders Conference. The social will take place on Aug. 22 at the Carolina Ale House in the Vista. If you are unable to attend the conference, I would still encourage you to attend the social event. This is a great opportunity for you to network with your peers and learn more about the YCPAs and the YCPA Leadership Cabinet. We are also looking for new locations around the state to hold meetings, social events or just enjoy a meal together. If you have ideas for future events, or suggestions to improve our events, please contact me. Alan Leichtle, CPA - Chair alan.leichtle@gmail.com

Harris Darver, CPA - Chair Alan Leichtle, CPA - Vice Chair/Promotions & Social Activities Committee Chair Allyson DeHart, CPA - Continuing Professional Education Committee Chair Joel Gibbons, CPA - Community Service Committee Chair Melissa Barbour, CPA - Communications Committee Chair

class of 2013 Beth Blackwell, CPA, ElliottDavis LLC, Charleston Charles Coleman, CPA, UCI Medical Affiliates, Columbia Erica Dawgert, CPA, Athene Annuities, Greenville Stephanie Estrada, CPA, Goodwill Industries of Upstate, Greenville Thomas Godwin, CPA, Dixon Hughes Goodman, LLP, Greenville Trevor Hartley, CPA, McGregor & Company, LLP, Columbia Morgan Smith, CPA, Dixon Hughes Goodman, LLP, Charleston Kevin Wise, CPA, WebsterRogers, LLP, Myrtle Beach

class of 2012 Melissa Barbour, CPA, Streetman, Jones & Powers, LLC, Charleston Harris Darver, CPA, McGregor & Company, LLP, Columbia Allyson DeHart, CPA, The Hobbs Group, PA, Columbia Stephanie Denham, CPA, Pathology Service Associates, LLC, Florence Alan Leichtle, CPA, General Information Services, Inc., Chapin Doug Torchio, CPA, Johnson Lambert & Co., LLP, Charleston Damon Hilton, CPA, College of Charleston, Charleston

class of 2011 Courtney C. Cribb, CPA, WebsterRogers, LLP, Florence Valarie Davis, CPA, Bauknight Pietras & Stormer, PA, Columbia Joel A. Gibbons, CPA, WebsterRogers LLP, Charleston Russell D. Gladden, CPA, The Springs Company, Lancaster Samuel W. Howle, CPA, Elliott Davis LLC, Columbia Crystal L. McGuire, CPA, MBA, LS3P Associates, Ltd., Charleston Dana E. McMurry, CPA, Dixon Hughes Goodman, LLP, Charleston James B. Reese, CPA CITP, CISA, J.D. Shirley LLC, Columbia Patrick C. Thomasson, CPA, Scott & Company, LLP, Greenville Molly G. Waring, CPA, Elliott Davis, LLC, Charleston

Congratulations YCPA Leadership Cabinet Graduates (888) 557-4814 | www.scacpa.org

Class of 2010

Class of 2011

Kirby L. coker, cPA WebsterRogers LLP, Georgetown

samuel w. Howle, cPA Elliott Davis LLC, Columbia

cory Ouellette, cPA Elliott Davis, LLC, Greenville

James B. reese, cPA ciTP, cisA, J.D. Shirley LLC, Columbia

william A. “Ashley” Thiem, cPA Thiem & McCutcheon, CPAs, PA, Charleston

Patrick c. Thomasson, cPA Scott & Company, LLP, Greenville

roxanne r. caldwell, cPA, MPA Dixon Hughes PLLC, Greenville

courtney c. cribb, cPA WebsterRogers LLP, Florence

South Carolina CPA Report

Young

CPA Leadership is Changing -

Do You Have What it Takes? by Maureen Taylor SCACPA Director of Marketing & Members Services

hen my son was in preschool his teacher told me he was a natural born leader. While I interpreted the statement as perhaps my son was a bit bossy, I still remember how that moment filled me with pride – out of all his classmates he was the “chosen one.”

“What have not changed are the traits of an effective leader – communication, influence and collaboration – however, this is no longer a top down process.”

I share this story to demonstrate that as recently as 20 years ago leadership was viewed as a position, and power lay within that position. Even Merriam-Webster defines leadership as the office or position of a leader. While there are still some that hold to this philosophy, leadership is changing.

According to the Center for Creative Leadership, there is a growing movement toward collective leadership, meaning away from leadership as a position and toward leadership as a process. In its research on how to develop a leadership strategy, the center states:

SAVE THE DATE!

“We must understand leadership culture, as defined by the collective actions of formal and informal leaders acting together to influence organizational success. It is not simply the number or quality of individual leaders that determines organizational success, but the

2013 Emerging Leaders Conference Aug. 22-23, 2013 Marriott City Center Columbia, SC 18

South Carolina CPA Report

ability of formal and informal leaders to pull together in the support of organizational goals that ultimately makes the difference. “ Taken a step further, leadership is about the relationships within an organization and leveraging those relationships to achieve a common goal. What have not changed are the traits of an effective leader – communication, influence and collaboration – however, this is no longer a top down process. Instead, all three now occur up, down and across every organization. So, what does all this really mean and more importantly why should you care? For young CPAs there is an abundance of opportunities to lead within your organization, your profession and your association. And, these leadership opportunities can be long-term processes, such as the path to partner, or short-term such as leading a firm project. Within SCACPA you can commit to serving on a task force or take advantage of an ad hoc opportunity including serving on a quick action team, writing an article for the CPA Report or serving as an on-site coordinator for a conference. You can also apply to the Young CPAs Leadership Cabinet where you will receive training on leadership traits – communication, influence and collaboration. Regardless of which you choose, you are gaining exposure to formal and informal leaders and learning how to cultivate these relationships to achieve a common goal. n

Leadership is a process. Are you ready to take the next step? CLICK

Take the next step in leadership and register for the Emerging Leaders Conference – www.scacpa. org/emergingleaders. For more information on SCACPA volunteer opportunities visit www.scacpa. org/getinvolved. To read more about collective leadership visit the Center for Creative Leadership at ccc.org.

(888) 557-4814 | www.scacpa.org

Key Challenges Facing Entry-level Accounting Professionals by Harris Darver, CPA SCACPA member since 2008

inding value and personal gratification, along with professional success in a career is a priority for today’s graduates - entry-level accounting professionals included. Entry-level accounting professionals desire a different kind of value from their profession than what has been expected by earlier generations. Where older generations are more likely to emphasize productivity and billable hours, today’s young professionals find value in community involvement and service, which offer intrinsic as opposed to monetary rewards. Those entering this profession may be challenged by inflexible expectations of production and hours that are characteristic of the traditional accounting firm structure.

“This younger generation will also be challenged to concern themselves more with the quality of their work product than how quickly the product was produced.” Additionally, new entrants will be challenged to persuade their supervisors to invest in opportunities that allow this younger generation to grow leadership skills and develop a community presence. Again, this challenge is rooted in a difference of opinion as to wherein value lies. Young professionals will be challenged to demonstrate to their supervisors the value of this non-billable time. More so than earlier generations, today’s entry-level staff are seeking a balance between work demands and their personal time. Entry-level staff are likely more willing to sacrifice salary in exchange for reduced working hours. This does not mean that they do not desire professional advancement, but they are less willing to sacrifice family and personal time to do so. This presents a challenge to entry-level staff that are evaluated for advancement by members of an older generation who view sacrifices of personal time as an expected necessity to achieve a level of production that warrants advancement. This is particularly true of those

(888) 557-4814 | www.scacpa.org

supervisors who have achieved their success through sacrificing personal and family time. A sense of individuality and personal identity is important to our society’s younger generation. This will challenge young professionals to maintain their individuality in an occupation whose work product lends itself to little creativity and is strictly regulated. Additionally, while some young professionals may be fortunate to be given meaningful responsibilities early in their career through which they begin to develop niche practice areas early on, this is not the case for many. Young professionals will face the challenge of finding meaningful work and developing an area of expertise with supervisors who invest in that employee’s future. This younger generation will also be challenged to concern themselves more with the quality of their work product than how quickly the product was produced. This generation is often more results-driven, which will prove to be a challenge in this profession, particularly when detailed careful analysis and follow-up is extremely important. Technology plays a major role in challenges that will be faced by younger professionals. While this generation is well-versed in technological skills compared to older generations, these professionals may have less ability to communicate with or manage staff. In particular, younger professionals may not understand the value of face-to-face communication. Too often young professionals attempt to address complex topics or conflict using short-hand communication when a more productive form of communication may be over the phone or an in-person conversation. Given the common-place nature of email or text messages in this generation’s continued on page 42

South Carolina CPA Report

SCACPA Members Make Their Voice Heard at CPA Day

CACPA members gathered in Columbia on May 1 to make their voice heard during CPA Day at the State House. The annual event featured updates on legislative and regulatory issues as well as an opportunity for SCACPA members to interact with legislators and discuss issues of concerns to both CPAs and their clients. Cynthia Lund, vice president, state society affairs, AICPA offered a na-

tional perspective on the most pressing topics facing the profession. Attendees also received an update on SCACPA’s legislative agenda from Copper Dome Strategies, SCACPA’s lobbying team and Legislative, Regulatory and Advocacy co-chairs Jason Sweatt and Todd Dailey. SCDOR Director Bill Blume, CPA, shared what the agency is doing to become more accountable and taxpayer friendly. The program also featured a panel discussion on South Caro-

lina’s initiatives on regulatory review, facilitated by Chuck Bundy, deputy director of Small Business and Existing Industry at the S.C. Department of Commerce. Well over 100 were also on hand to welcome 34 new CPAs into the profession. Sponsored by Dixon Hughes Goodman, Webster Rogers LLP and Bernard N. Ackerman, CPA, PA, Bill Blume administered the oath during the New CPA Oath Ceremony. n

Pictured top left: McRoy Skipper Jr., WebsterRogers LLP and Meyer Drucker Top right: Marie Spearman, Allison Ludwig, Bernie Ackerman, Jeannette Campbell and Jason Ackerman all with Bernard N. Ackerman, CPA, PA Bottom left: Chair Michael Putich Bottom right: Tim Duncan, Duncan, Farmer, Munden, McIlrath & Co.; John F. Camp, Camp Moring & Cannon, LLC; and John F. Hamilton, Hamilton McKinney & Moss, CPA.

South Carolina CPA Report

(888) 557-4814 | www.scacpa.org

2012-2013 New CPAs Jason Ackerman Thomas Adams Jr. Jenifer Akers Laura Amick * Oyebukunola Ande Dwight Bailey Deanna Barabas * Brett Barton Richard Beason Magdalyn Bell Leigh Bethmann Cheryl Bohlen * Dawn Bondar Margaret Bost * Elizabeth Brigham Louise Brodie * Angela Brown Jared Bryson Ryan Byrd Deeann Cain Jeannette Campbell * Cody Carter Andrew Chalupa Elizabeth Chapman * Andrew Chernick Ci Chu Dean Cochenour Jessica Coker Nicholas Crandall Margaret Creech * Gabriel Creech Ashley Cribb Henry Crider Jr. *

(888) 557-4814 | www.scacpa.org

Hilary Davenport Kseniya Davis Leroy Dixon III * Megan Duffy * Bradley Ebenhoeh Philip Falzone Eric Farmer Jr. Benjamin Farthing Ian Ferguson * Lindsey Fisher * Brian Ford * Shannon Fortenberry * Stanislava Fowler * Wendy Fuhrmaneck Thomas Gaffney Aarpm Galloway Nathan Gillow * Jessica Glenney John Goldstein Valerie Gray * Kendall Green James Gregory Lauren Guthrie Quincy Halliday IV Adam Hardesty Richard Hargrave Katherine Hart Trevor Hartley * Trent Hawk Edwin Henry * Tamara Hicks Kaleb Hoefler Adam Hoey *

*Reflects SCACPA member at time of Oath Ceremony. Katherine Hoey * Roy Holland Jr. Jonathan Hood* William Howland * Kenneth Hugendubler Brian Jordan * Jens Kaufmann Shaun Kazemian Richard Kenyon John King Shane Kirkley * Elaine Kovaks Kelly-Jean Kwiatkowski Spencer Lewis Barry Long * Allison Ludwig James Mackintosh IV Philip Maiberger Pearl Marodis Vanessa McCutchen Brannon Medley Nathaniel Melsom Melynda Meyer Helen Michael * Brittany Miles Craig Miller * Scott Montgomery * William Morgan Zachary Mueller * Robert Muller Charles Myers Michael Oâ&#x20AC;&#x2122;Brien Holly Oglesbee

Wesley Paul Jason Pflug * Andrew Preston * Joseph Reese * Heather Rhinehart * Kayla Rice Rachel Rines-Leach Ally Rivers * Megan Shoenbauer Kevin Shantz Chelsea Shoolbred * Elizabeth Shull * Richard Sines * Marcia Smeenk * Morgan Smith * Daniel Smoak * Constance M. Spearman * Mallory Stamps Greg Stribos Christine Strople * Alison Swaggard * Gregory Thompson Glenn Thornburg Laura Varn * Katherine Von Ruden Gerald Walker * David Wedding Jeremy Whitaker * Philip Williams * Marla Womack Patricia Yount * Piet Zaner Xiaojun Zhang Marina Zimiceva *

South Carolina CPA Report

Technology

Technology n

Selecting a Cloud Accounting Strategy for a Public Accounting Practice

Thriving (Hopefully) in a New Environment

Going Paperless….Not as Easy as 1, 2, 3

Tools You Can Use On the Go

What is BYOD and Do I Want One?

Reducing Fraud with Technology

anaging and retaining data has emerged as the top priority for CPAs, according to the 2013 North America Top Technology Initiatives Survey. That’s a departure from results in the United States last year, when IT security led the list – a spot it had claimed for nine of the past 10 years.

FOCUS ON TECHNOLOGY CP E

Cloud Computing (94113) August 22 Identity Theft: Preventing, Detecting, and Investigating Identify Theft (90913A) August 26 Fraud Conference co-sponsored with Palmetto Chapter of ACFE (411213) September 26 Using the iPad as a Business Tool (99113) December 13 Paperless Office (99313) December 17 Visit www.scacpa.org to learn more.

South Carolina CPA Report

The survey, a joint effort between the American Institute of Certified Public Accountants (AICPA) and the Chartered Professional Accountants of Canada (CPA Canada), was based on responses from members of both organizations interested in information technology. While survey respondents see data as a key differentiator for businesses, they are less confident in their organizations’ ability to successfully address several underlying technology priorities than they were a year ago.

The Top five U.s. concerns Are: 1. 2. 3. 4. 5.

Managing and retaining data Securing the IT environment Managing IT risk and compliance Ensuring privacy Managing system implementations

In this special section, SCACPA members share some of their technology concerns and lessons learned.

(888) 557-4814 | www.scacpa.org

Selecting A Cloud Accounting Strategy for a Public Accounting Practice by William R. Barefoot, CPA SCACPA member since 1998

loud accounting – by now, most of us have heard the term. What is it? Should I be doing it? What are the issues?

wHAT is iT? The term may be new, but the concept is as old as computers themselves. When computers came into vogue in the 1950s, it was predicted that computing services would end up being sold just like electricity or other utilities. Customers would own “dumb” terminals, devices without storage or computing capacity, and buy storage and computing services from a handful of providers. Many of us in the accounting profession witnessed the “technology boom” of the 80s and 90s. During that time, the prices for personal computers

(888) 557-4814 | www.scacpa.org

and network servers became more affordable for small business. Therefore, enterprises brought their data processing in house, purchased their own hardware and hired information technology professionals to keep it all working properly. SMEs did the same with their accounting services. They brought their accounting services in-house and invested heavily in hardware, accounting software and accounting personnel. But a few years ago, the status quo for in-house computing and accounting was given an alternative. The alternative was to forego the increasing costs in hardware, software and personnel and to once again outsource those services. Providers of web-based accounting, computing and storage services were popping up on the scene. Cloud ac-

“But a few years ago, the status quo for in-house computing and accounting was given an alternative. The alternative was to forego the increasing costs in hardware, software and personnel and to once again outsource those services.”

South Carolina CPA Report

Technology counting is the term for providing accounting, computing and storage services through Web-based applications. A couple of years ago, the AICPA and CPA2biz began a campaign to get firms to move to providing accounting services “in the cloud.” Our firm decided we wanted to explore offering cloud accounting services to our clients. There are several points to consider before deciding if cloud accounting services are right for your firm. Find a champion – Do you have someone willing to take the lead in championing this service, both externally and internally? This probably needs to be someone in senior management or owner/partner level. The person(s) needs to be an early adopter of change and be willing to take criticism as the challenges of doing things differently are being experienced. Explore your options – There are many third-party vendors now who will partner with CPAs to provide accounting services. The AICPA has preferred providers that you should check out. However, you should not overlook those not listed with the AICPA. In any case, you will want to perform due diligence for security, reliability, service, backup procedures and maintaining client confidentiality.

“The learning curve may lead to lower realization numbers for a while. This is an investment in the future of your firm you should be willing to make in order to be successful.” mation; others may not be so willing. Do you force everyone to change to the “new and improved” method, or do you allow them to choose? Is it a gradual change or do you give a deadline for making the switch? In talking with other CPAs that are providing cloud accounting services I learned that it is being done different ways. Can I do this profitably? - Another concern is pricing engagements. One of the reasons SMEs took their accounting back in house is they determined they could do this cheaper themselves. In order to earn back these services, we

have to show them an economic advantage to do so without losing money ourselves. This can be challenging. I once heard someone say that if the fees for outsourcing services are three-fourths what it cost to perform in-house, then maybe it should be done in-house. What is not always considered are the hidden costs of performing a function. Discovering those hidden costs is critical in being able to properly price outsourced services and, perhaps more importantly, selling those services to your clients. Staff training – How long will it take to get staff trained on new procedures and software? Do you have the right staff for cloud accounting services? You should allow enough time for staff to get trained and in some cases certified with the new applications. The learning curve may lead to lower realization numbers for a while. This is an investment in the future of your firm you should be willing to make in order to be successful. If you do not provide the necessary training and support, your staff may become unhappy and leave the firm.

Partner “buy-in” - You will be more successful if you have the support of all your partners. There may be some resistance to changing the way accounting services are provided to your clients. If possible, you should try to address their concerns before launching cloud accounting services. How will my clients react? – Obviously this is very important. Some clients are more than happy to change the way they provide and receive infor-

South Carolina CPA Report

(888) 557-4814 | www.scacpa.org

These are some of the main things to consider before adopting a cloud accounting services niche. Next are some initial concerns I had of cloud accounting services.

competing directly with you for new clients and possibly for other services with your existing clients. Be sure you discuss what is acceptable before agreeing to terms.

WHAT SHOULD I BE CONCERNED ABOUT?

Disclosure and engagement letters – Disclosing your use of third party vendors and covering everything in the engagement letter is very important. You should indicate what you are providing for your client and what you are not providing. For example: we want to make it clear that we are not providing information technology consulting and only are providing consulting services for the accounting applications or processes we are engaged.

A chief concern I have is whether the cloud applications and/or providers deliver what I promise. There are two ways to provide cloud accounting services – cloud accounting applications and hosted services. With cloud accounting applications you log into the application directly. An example of a hosted service is when a third party provides a network you access on the web and hosts an application on their network. With either service, you have to depend on that provider to deliver so it doesn’t reflect negatively on your reputation. Security – Will your client’s information be safe? The conventional wisdom is that your data will be safer than on your local server because the companies providing the service can afford better security. I hear about data breaches too often it seems, so it is still something to consider. How reliable is their application/ network? - I don’t want calls from clients telling me they cannot access their information. Most cloud accounting companies can provide you with statistics for down-time. You should ask about it. Portability – Most cloud accounting providers have proprietary technology. So, if your client becomes dissatisfied with XYZ and decides to switch providers, their data may not import into another cloud accounting service. Maintaining and accessing historical data may be a challenge. Competition for clients – Some cloud accounting service providers may be

(888) 557-4814 | www.scacpa.org

We have been providing cloud accounting services to our clients for a little over two years. It may not be right for everyone. We have faced challenges and learned lessons along the way. It has helped us collaborate with clients more efficiently and more clients are interested in the advantages and features of cloud accounting. I think it is the right way for the profession to provide efficient accounting services to our clients and it can open the door for other tax and audit services. n

William Barefoot, CPA, is business advisory services manager with WebsterRogers’ Florence office. He currently serves on the SCACPA Board of Directors and the Audit Committee.

Do you need a peer review? At WebsterRogers, we’ve been providing peer review services since the AICPA required them to be mandatory for those in public practice. We are dedicated to enhancing the quality of accounting, auditing and attestation services provided by AICPA members. Our professionals regularly provide peer review services to small and large public accounting firms across the eastern United States. Please contact Tom Fitzsimmons at 843.665.5900 or Chuck Talbert at 843.577.5843 for more information

Charleston . Columbia . Florence . Georgetown . Hilton Head Litchfield . Myrtle Beach . Summerville . Sumter

South Carolina CPA Report

Technology

Thriving (Hopefully) in a New Environment by Jonathan Godwin, CPA SCACPA member since 1999

wasn’t alive when calculators were invented. I can only imagine that they took the world by storm. I was working in public accounting when the idea of working in a largely integrated and digital environment came around, and it’s still taking our profession by storm.

transitions are never easy. Knowing the desired end result of the change is critical and something we had to learn the hard way.

My firm decided to reduce our use of paper in 2006 by scanning client backup instead of adding it to existing files. We finally shredded the last paper file five years later in 2011. However, we told clients we were paperless at that time, and we were to a large degree, just not completely, I suppose.

You must have a documented system for everything you do. We had no systems for anything…we only had technicians doing those things. You cannot successfully shift from paper and native software to a cloud-based/ digital environment without setting up systems for everything you currently do. The idea here is to replicate the system throughout your firm and teach your team, and with no system that is impossible. We are currently working on a documented system for every function in our firm.

Over time, we explored moving our stored data to the cloud for quicker, remote access. We now utilize a hosting service for our QuickBooks Pro client files. In recent weeks, we decided it was time to transition away from natively installed tax preparation software and look to a cloud-based (SaaS) solution. As with any software application change or systems change, the

We learned a lot on our journey to become a digital and integrated CPA firm. For instance:

You must know why you want to make a change from your current system. We made the call to go paperless before we knew why we wanted to

SCACPA has scheduled these unique, 8-hour seminars where the materials will be presented on an iPad, provided for your use during the day or you can choose to use your own device!

“Knowing the desired end result of the change is critical and something we had to learn the hard way.” do it. So, when we decided to explore cloud-based tax preparation software, we took two years to analyze every reason why this change would benefit the firm. Now, we are ready and I have confidence it will work. Blowing things up and starting over takes time, so we decided to do things right the first time. You must explain the changes to your clients so they’re comfortable with them. In our case, some were open to changes in our technology and some were very nervous. We didn’t roll out our ideas in a comforting way, and we paid for it with pushback, hours of questions, frustrated emails and confusion. Clients don’t care how things get done as long as they are done correctly, in a timely manner as promised, and with as little inconvenience to them as possible. When you make a change such as introducing portals, make sure to ease your clients’ minds about potential problems and security. We continually look for ways to be more effective for our clients, even if we sacrifice efficiency in the short-term. Moving to a more digital environment was the right move for us because it allowed us to serve our clients better. What is your next move? n

Jonathan Godwin is the president of Godwin & Associates, CPA, specializing in assisting small businesses with tax structure matters and planning/ advisory/preparation. Visit www.godwincpa.com to learn more.

South Carolina CPA Report

(888) 557-4814 | www.scacpa.org

Going Paperless….Not as Easy as 1, 2, 3

by Jonathan Godwin, CPA SCACPA member since 1999

hen my CPA firm decided to move from having a room devoted to filing cabinets of client backup to digital copies stored on an in-house server, it was a monumental day. One day, we filed paper; the next day, we scanned it. It sounded so easy. As any firm owner who has attempted to “go paperless” knows, it’s not that easy. The challenges are going to come both in setting up a paperless system and in maintaining one. Here are a few things to consider in your paperless journey: Why do you want to go paperless? What are the problems and hang-ups with the current paper system? Will having less paper make your life better? Will it be easier to share information with your team and with clients if that information is in digital form? Will it be more cost effective? Identify exactly where you want to be so you’ll recognize it when you get there. And no, being cool and tech-savvy isn’t a good enough reason. Do you have a system in place for being paperless? I know, you think that being paperless IS your new system. It’s not. One simple and critical thing that we didn’t think about initially was the importance of naming PDFs in a consistent manner. In our case, we went paperless and then had to build the system. Walking to a file cabinet and pulling a file is simple. Browsing through your entire server for a client’s 2010 tax return that has been titled in an inconsistent manner isn’t easy. Before going paperless, you need to develop a system that is focused on every item of detail, including a consistent method for naming your scanned documents. Are your clients ready? My firm is, for all intents and purposes, paperless. My 76-year-old individual tax client is nowhere near paperless. So, you need to think through the processes now that you want to live in a digital world and some of your clients don’t even own a computer. We spent a great deal of time thinking through this aspect of our firm, and while we love working with clients who use technology, we also love our clients who keep accordion folders of tax documents. I know practitioners who have stopped working with clients who won’t adopt their paperless policies. You need to determine where your firm stands on this issue.

(888) 557-4814 | www.scacpa.org

“Walking to a file cabinet and pulling a file is simple. Browsing through your entire server for a client’s 2010 tax return that has been titled in an inconsistent manner isn’t easy.” Does your firm’s culture support being paperless? If I had it to do over again, I would wait on becoming paperless because my firm wasn’t ready. Nothing will derail building a new system than doing it before the players are ready for it, and more importantly, before you can describe it and replicate it. Talk to your team, heed the feedback of key team members and build this new system slowly. It will be with you for a long time to come, so do it right the first time if possible. n

Jonathan Godwin is the president of Godwin & Associates, CPA, specializing in assisting small businesses with tax structure matters and planning/advisory/ preparation. Visit www.godwincpa.com to learn more.

It’s a rare combination:

A tax lawyer with courtroom savvy. Jerry has more than 14 years of courtroom experience, having litigated cases in 18 states and scored several multi-million dollar verdicts. He graduated with distinction from Georgetown’s Tax LL.M. program, after receiving his J.D. and A.B. from Duke University. Jerry represents North and South Carolina clients in U.S. Tax Court proceedings, federal refund actions, tax collection actions, and state income and sales tax proceedings. When it’s time for your client to call in a tax lawyer, Jerry Meek is courtroom ready.

250 N. Trade Street, Suite 207 | Matthews, NC 28105 Tel: 704.845.9490 | www.jerrymeek.com

South Carolina CPA Report

Technology

Tools You Can Use

On the Go by Timothy L. Baker, CPA, CITP, CMA SCACPA member since 1995

“An organization application helps you bring together your various notes about a number of different topics and organize them all in one place.”

he age of the mobile device is upon us. Every day we hear about a new app or portal that can help our clients, or us, gain access to the tools we use every day. But what about the other uses for your tablet or mobile phone? Let’s review a few practical apps that might make your business life a little easier when on the go. We will review three different areas, and discuss different apps in each.

MeeTiNG Or cONfereNce APPLicATiONs Do you use applications such as Citrix Online’s GoToMeeting or Microsoft’s Skype to communicate with co-workers and clients? These same apps are available for several mobile operating systems and allow you to take that call from virtually anywhere you have connectivity. Citrix Online’s service, GoToMeeting, ( www.gotomeeting.com) is a subscription service that many companies utilize. The service allows up to 25 callers on a single call, and handles audio and video. The calls may be recorded, if the host desires. Mul-

tiple user accounts are also available. GoToMeeting has conferencing apps for the iPhone, iPad, and Android Operating Systems. Microsoft’s Skype offering (www. skype.com/en/) is used by many individuals and businesses. Skype allows video and audio connections with other Skype users at no charge. Group video calls with up to 10 individuals, or calls to cell phones or land lines require a subscription. Skype has apps for iPhone, Windows, and Android phones. Supported mobile device environments include Android, iPad, Kindle Fire, and Windows 8.

OrGANiZATiON APPLicATiONs Do you ever wonder what you did with that piece of paper or sticky note? Do you need your notes at home, when they are at work or vice versa? Then you may be a candidate for an organization application, such as Evernote or Microsoft’s OneNote. An organization application helps you bring together your various notes about a number of different topics and organize them all in one place.

Evernote (www.evernote.com/ ) is an application that allows you to store text, pictures, sounds, or just about any object you want. You are able to index the objects with keywords, so finding things is very simple. Evernote allows for storage of these different items on the Web, so that they can be accessed from virtually any device. File storage above the entry level 500 MB incurs a monthly fee. The application has clients for Windows or Mac computers on the desktop, or iPhone, iPad, Android, Windows phone and Blackberries at the mobile device level. Microsoft’s OneNote (www.office. microsoft.com/en-us/onenote/) allows you to take notes and other items in a similar format to Evernote. OneNote can be used locally. In order to share OneNote you will need to be working on a network, or have a subscription to Microsoft’s Office Web Apps. OneNote operates with Microsoft Windows on a PC, and Android, iPhone, iPad, and Windows devices.

fiLe sHAriNG File sharing is something that always has a use. There are several commonly continued on page 29

South Carolina CPA Report

(888) 557-4814 | www.scacpa.org

What is BYOD and Do I Want One? by Timothy L. Baker, CPA, CITP, CMA SCACPA member since 1995

o accompany the article on productivity apps for mobile devices, we thought it a good idea to cover some essential security concerns. But let’s start with some key terms first.

and has remote shutdown capabilities installed by your outsourced IT provider. Now the bad news. Fred’s personal iPhone has company email, credit card, firm portal and file sharing applications on it, all of which is accessible with merely the swipe of a finger. Fred found the device level password to be cumbersome, and didn’t have time to set up the Find My iPhone app that comes with the device. Get the picture?

BYOD stands for bring your own device. Many of SCACPA’s practitioners never had this opportunity, as laptops were called portables, weighing approximately 40 pounds each, and the only cell phones came in bags. Those were the days! Today’s proliferation of devices and connectivity has led us to people having the capability and desire to access data anytime, anywhere. It can be an enabling technology for staff and clients, allowing for quicker access to information, decision making and response. Let’s discuss a scenario with a hypothetical staff member named Fred. He is the star in your audit department. His use of technology has propelled the practice. Fred is continued from page 28

utilized apps for this purpose. A few of the applications are Dropbox (www. dropbox.com), Microsoft’s Skydrive (http://skydive.live.com), and Google Drive (www.drive.google.com). These applications allow you to store a limited amount of data at no charge (from two to 15 MB), then charge a base subscription fee after that. You are able to add users (typically one) to

(888) 557-4814 | www.scacpa.org

in the Atlanta airport waiting for a flight. He leaves his bags and laptop sitting in a chair while getting a cup of coffee. Someone picks up the firm laptop and his phone. The laptop has been secured with a password share the files with. The ability to share with a group and add group folders typically is available with the paid model. File sharing should be used with great care. Please see the article on BYOD security for more information. Meeting, organization and file sharing are just a few of the general utilities that we can use on devices to be more productive. Utilizing apps like these, in conjunction with firm and platform

Your firm should take a look at understanding who uses what on BYOD. Are files being shared with clients? Does your firm have policies on BYOD usage? What about policies for reporting loss or theft of a device to your firm, with disclosure on what was on the phone? These are just a couple of the risks to think about. A good place to start is a firm census, to help in understanding who is using what technology. You would then be able to start a policy on usage, and provide training and remediation as needed. n portals and apps, can help us to be more productive, without regard to our location. n

Timothy L. Baker, CPA, CITP, CMA, is a lecturer at the University of South Carolina Moore School of Business. He is past president of the SCACPA Board, chair of the Accounting Careers and Academic Relations Committee and a member of the Long Range Planning Task Force and Editorial Board Task Force.

South Carolina CPA Report

Technology

Reducing Fraud With Technology by Thomas G. Stephens, Jr., CPA, CITP K2 Enterprises

he statistics are everywhere and they are startling – fraud continues to run at epidemic levels, not only in the United States, but also across virtually all countries. In fact, according to the Association of Certified Fraud Examiners 2012 Report to the Nations on Occupational Fraud and Abuse, the typical organization loses approximately 5% of its gross revenues each year due to fraud, with the median loss pegged at $140,000. However, this need not be the case, because you already own some very effective tools for preventing and detecting fraud and they reside on your computer. In this article, I will provide some guidance for using tools that you already own – namely Microsoft Office Excel and Access – to help you detect fraud and to reclaim some of your profits that may be walking out the back door. UNcOVeriNG fiNANciAL sTATeMeNT frAUD One of the more expensive types of frauds committed is that of financial statement fraud. These frauds can be committed using any number of techniques, including recording fraudulent journal entries. Common characteristics of fraudulent journal entries include those in round dollar amounts and those entered on weekends. In the example shown in Figure 1, selected fields from the Journal table have been extracted into an Excel Table from a company’s accounting database. Two calculated fields are used to identify transactions in round dollar amounts and those transactions entered on Saturday or Sunday. After creating

the formulas, the results can be filtered to identify specific transactions of interest. Note the formulas used to identify transactions of interest in Figure 1. One formula uses the WEEKDAY function to identify the day of the week that the journal entry was recorded. Transactions entered on Saturday or Sunday evaluate to "7" and "1" respectively. The other formula uses the MOD function to calculate the remainder of the debit amount divided by 1,000. Transactions entered in even $1,000 amounts generate a result of "0". figure 1 - Identifying Suspicious Journal Entries

South Carolina CPA Report

(888) 557-4814 | www.scacpa.org

fiNDiNG DUPLicATe PAYMeNTs Another way that fraudsters may commit a billing scheme fraud is to make multiple payments on a valid invoice. Generally, when a legitimate vendor receives a duplicate payment, the vendor notifies the customer and asks how the duplicate payment is to be handled. In these cases, the person committing the fraud will request a refund and then intercept and negotiate the refund check. Identifying and investigating duplicate payments becomes an important part of the fraud prevention and detection process. Microsoft Access has a query wizard for identifying duplicate values in a field or across multiple fields. From a fraud detection standpoint, this feature can be very effective in identifying potential duplicate transactions, such as duplicate payments of the same invoice. To begin the process, select Create, Query Wizard from the ribbon. In the New Query dialog box, select Duplicate Query Wizard and then click OK, as shown in Figure 2. figure 2 – Find Duplicates Query Wizard in Microsoft Access Next, select the source data to query. Once the data source has been chosen, select the field or fields containing possible duplicate values, and then select any additional fields to be displayed in the query results. In this case, select Name and Amount as the fields that contain the possible duplicates, and then choose to display all fields in the results. Finally, name the query for future recall and click Finish to view the results, as shown in Figure 3.

figure 3 – Duplicate Payments Identified with Access Query

UsiNG THe AcTiVeDATA ADD-iN fOr eXceL ActiveData is an add-in for Excel that uses predefined automated processes to overcome the general lack of user knowledge and skill required to perform sophisticated fraud analysis in Excel. Priced at $249 per user, most potential users of ActiveData will not find the acquisition cost to be a barrier to obtaining the functionality embedded in this tool.

figure 4 – Stratification Results and Chart in ActiveData

(888) 557-4814 | www.scacpa.org

For example, ActiveData can be used to stratify data easily. Stratifying data is an effective technique for identifying areas of risk. Select Strata from the ActiveData tab, define the stratification bands, and then click Stratify. Click Finished to write the results along with a chart to a new sheet in the workbook, as shown in Figure 4. In this case, though 55.89% of all transactions are below $1,000, 91.67% of the financial risk is borne by transactions in the $1,000 to $20,000 strata.

South Carolina CPA Report

Technology PerfOrMiNG A BeNfOrD’s LAw TesT wiTH AcTiVeDATA Benford's Law is a powerful tool in detecting fraud because it allows examiners to test numbers against recognized norms. In doing so, significant deviations from these expected values can be investigated to

determine if there is evidence of fraud. Benford's Law is especially useful at identifying bogus transactions and at spotting transactions manipulated to avoid authorization and approval. For accountants and auditors faced with the suspicion of bogus or illegal transactions entered by employees, Benford's Law provides an excellent means of highlighting transactions that do not fit expected norms. ActiveData provides an automated process for applying Benford's Law. Begin the analysis by selecting ActiveData, Digital Analysis to open the Digital Analysis Using Benford's Law dialog box. figure 5 – Setting Options for Benford's Analysis in ActiveData

In the dialog box, select InvoiceAmount as the Column to Analyze and set the Confidence Level to 95.00%. Check Chart Results, First Digit Test, Second Digit Test, and First 2 Digits Test, as shown in Figure 5. Click Finished, and ActiveData will complete and display the analysis on a new worksheet. The results of the First Digit Analysis are displayed in Figure 6. Note that "8" and "9" are significantly oversampled, as indicated by the magnitude of the Z Statistic. An examination of the results of the First 2 Digits Test (not shown) indicates that "83," "88," "95," and "97" are significantly oversampled. The auditor should concentrate his examination on those transactions whose invoice amounts begin with the oversampled numbers

figure 6 – Results of First Digit Analysis Performed in ActiveData

sUMMArY Far from an exhaustive listing of all the ways you can use desktop technology to identify potential instances of fraud, the three examples presented above – 1) identifying potentially fraudulent journal entries with Excel, 2) testing for duplicate payments with Access, and 3) using Benford’s Law to identify potentially fraudulent transactions – should be “eye-openers” with respect to how we can use technology to curtail fraud. Remember, with fraud running at epidemic

South Carolina CPA Report

levels, using technology to prevent and detect fraud can provide an immediate positive impact on your bottom line.

Thomas G. Stephens, Jr., CPA, CITP is a shareholder in K2 Enterprises, where he develops and presents continuing professional education programs to accounting, financial, and other business professionals across North America. You may contact him at tommy@k2e.com.

(888) 557-4814 | www.scacpa.org

Member Profile

CITP a Natural Next Step for this CPA charles O. Blackmon, ciTP, PMP, cGM company: Pacolet Milliken Enterprises, Inc., Spartanburg scAcPA Member since: 2009

Why did you decide to become a CPA? After a career in industry that included everything from plant controller to chief financial officer, to director of manufacturing, I had the opportunity to move into management consulting. I felt that a CPA was the professional certification that best reflected my experience and education, and that would provide support for this new direction in my career. Why did you pursue the CITP credential? During my time in industry, I was involved in and responsible for the information technology (IT) area in a variety of industries. I developed a keen understanding of the relationship between IT and accounting. IT is the primary provider of transactional data and accounting is a primary user of transactional data. For me, the CITP certification was a natural next step after the CPA itself. How did you transition into business and industry? I began my accounting career with a regional accounting firm in Charleston. I found tax and audit work unfulfilling, and after one tax and audit season, I left to work for a multinational firm opening a manufacturing company in Summerville. The company was a joint venture producing multi strike film for the “new PC industry.” In fact, we had one of the first Apple Computers in South Carolina. I have remained in

(888) 557-4814 | www.scacpa.org

“I developed a keen understanding of the relationship between IT and accounting. IT is the primary provider of transactional data and accounting is a primary user of transactional data.” industry ever since, working for three multinationals, as well as public and private companies in the U.S.; manufacturing everything from airplane parts to zippers. How have you integrated your accounting background with IT? During my career in manufacturing I was involved in many IT implementation projects, including production and inventory control, material resource planning, enterprise resource planning, general ledger, accounts payable, accounts receivable, payroll, etc. Each system had a direct interface to the accounting system, and each system was a source of transactional data used by the accounting system. For me, the integration between accounting and IT was an integral part of the overall management system. In my opinion, it is impossible to separate one from the other. What do you consider to be the top technology issues facing CPAs in business & industry today? What general advice would you offer CPAs dealing with these issues? I think that the greatest challenge and opportunity for the accounting IT professional is to understand the difference between what we call infor-

mation technology and the strategic use of information. We all tend to become obsessed with the how - what system do I use, what server, what operating system etc. and overlook the value of, and how to use the information we create. We also forget to think about how it will all fit together, strategically. The IT process is as simple or complex as the following: data is processed in a secure, reliable and appropriate environment where it is recorded, categorized, stored, retrieved, shared and analyzed on a timely basis; the output of which is information that drives competitive advantage. It is important to have a strategic information plan that supports the goals of the organization. Technology is not the answer in itself, but support for the strategic information plan. Technology changes rapidly, but the strategic information plan should only change when the goals of the organization change. What is one thing your colleagues would be surprised to learn about you? I am a student of history; ancient Greece and Rome and Western Europe from the 14th century to our time. n

South Carolina CPA Report

focus on Membership

Member News

Brittany L. Jones, Moore Beauston & Woodham LLP, Charleston, has been promoted to a senior accountant. Ken Newhouse, CPA, CITP, Moore Beauston & Woodham LLP, West Columbia, has been promoted to manager in the tax and business consulting practice. Barrett E. Sammons, CPA, has joined

Moore Beauston & Woodham LLP’s Charleston office as a senior accountant.

Michael J. Targia, CPA, Cr.FA, Moore Beauston & Woodham LLP, West Columbia, has been promoted to senior manager in the audit and assurance practice. Jamie L. Ziembo, Moore Beauston & Woodham LLP, West Columbia, has been promoted to senior accountant.

Firm News

WebsterRogers LLP has merged the practice of Charles Talbert III, CPA, into the firm. Talbert joined the firm as a partner effective May 1. Prior to the merger, he was a shareholder and director at McAbee, Talbert, Halliday & Co. in Spartanburg, S.C. WebsterRogers LLP is pleased to announce the acquisition of the Hilton Head practice of Cherry Bekaert LLP effective June 3. As part of the acquisition WebsterRogers welcomes new partners Raymond E. Warco, CPA and Steven E. Miller, CPA along with a fulltime staff of seven. South Carolina accounting firm Moore Beauston & Woodham, LLP with offices in Charleston, Greenville, Columbia and Hartsville was the host firm for a meeting of the 64 leading accounting

firms that were represented at BKR International’s 2013 Americas Regional Meeting in Charleston, May 17-21.

Condolences

Robert Alexander Carswell, CPA, of Camden, died May 8. Born in Morganton, N.C., he was a graduate of Catawba College and was a retired CPA and senior partner of Carswell, Cantey and Associates. A lifetime member of SCACPA, he joined the association in 1964. Gary R. Logan, CPA, of Lexington died March 29. Born in Savannah, Ga., he joined SCACPA in 1986, the same year he received his license. Langdon James Smith, 22, of Florence died April 27. A student member of SCACPA, he was in his senior year at Francis Marion University.

WELCOME NEW MEMBERS AFFILIATE MEMBER/ NON-CPA Alison S. Brown Roebuck, S.C. Teresa Hawk Charlotte, N.C. Mary Higgins Charlotte, N.C. Amanda Ingram Charlotte, N.C. ASSOCIATE James K. Andreen, CPA Columbia, S.C. Shelley S. Carlson, CPA Florence, S.C. Kirk Dull, CPA Somerset, Pa. Robert J. Vodzack, CPA Bluffton, S.C. CPA CANDIDATE Kenneth R. Burton Jr. Gaston, S.C.

South Carolina CPA Report

Jessica E. Hales, Esq, LL.M. Charlotte, N.C.

Stacy B. Coleman, CPA Florence, S.C.

Bradley D. Page, CPA Piedmont, S.C.

Susanna C, Sharpe, CPA Blythewood, S.C.

Hayes Holland West Columbia, S.C.

Nick J. Crandall, CPA Greenville, S.C.

Matthew V. Phillips, CPA Greenville, S.C.

Craig A. Smith, CPA Cary, N.C.

Melynda Meyer Summerville, S.C.

Roger K. Elliott, CPA Port Royal, S.C.

Jessica M. Pruitt, CPA Columbia, S.C.

Lauren E. Smith, CPA Greenville, S.C.

FELLOW MEMBER Devon H. Brown, CPA North Charleston, S.C. Harry R. Brown, CPA Columbia, S.C. Robert M. Burch III, CPA Camden, S.C. Christine M. Byrne, CPA Aiken, S.C. DeeAnn M. Cain, CPA Camden, S.C.

Shannon L. Fortenberry, CPA Jay L. Reitzes, CPA Summerville, S.C. Indian Land, S.C. Erik M. Glaser, CPA Mount Pleasant, S.C.

James J. St. Jean Jr., CPA Lexington, S.C.

Megan Schoenbauer, CPA David A. Starkey, CPA Chapin, S.C. Mount Pleasant, S.C.

FELLOW – GOVERNMENT Andrew T. Chernick, CPA Lexington, S.C. Tonia L. Morris, CPA St. Helena, S.C. Laura K. Veronie, CPA St. Helena, Ga. FIRM ADMINISTRATOR Debra M. Downing High Point, N.C.

Lori C. Hair, CPA Lexington, S.C. Benjamin S. Halligan, CPA Columbia, S.C. William D. Huber, CPA Greenwood, S.C. Tyler M. Keisler, CPA Greenville, S.C.

Timothy P. Cherry, CPA, CGMA Marietta, S.C. David A. McKinley, CPA Lexington, S.C. Jessica L. Coker, CPA Spartanburg, S.C. Christina R. Miller, CPA Greenville, S.C.

(888) 557-4814 | www.scacpa.org

Peer Review by the Numbers

Number of Enrolled Firms by Number of Professionals*

Compiled by SCACPA Staff

CACPA administered its first peer review in 1989, under the American Institute of Certified Public Accountants (AICPA) program. At that time, the program was only available to AICPA member firms and in South Carolina almost 40 firms with auditing practice had reviews in 1990. Today, peer review is mandatory for all CPAs in South Carolina if the firm provides accounting and auditing services as part of its public accounting practice.

212

5-10

11-19

20-49

50-99

1 8

22 452

AE Program

AICPA Program

Pass

Pass with deficiency(ies)

Fail

Subtotal - System

Pass

Pass with deficiency(ies)

Fail

Subtotal - Engagement

TOTALS

149

Engagement Reviews:

Note: Data reflects peer review results as of 12/4/12. Approximately 0 of 2011 reviews are in process and their results are not included in the totals above.

Number of Engagments

Not Performed in Accordance with Professional Standards Reviewed

Not Performed in Accordance with Professional Standards 2

Audits - Governmental - All Other

Audits - ERISA

Audits - FDICIA Audits - Other

Reviews

107

Compilations with Disclosures

222

Financial Forecasts & Projections

Other SSAEs Agreed Upon Procedures

(888) 557-4814 | www.scacpa.org

System Reviews:

2 to 5

Results of Peer Reviews Performed During the Year 2011

Audit - Single Audit (A-133)

TOTALS

138

AICPA Program

Number of Engagements

Compilations without Disclosures 36

* Professionals are considered all personnel who perform services, for which the firm is responsible, whether or not they are CPAs. The number of enrolled firms is 571 as of 12/4/12.

We thought it would be interesting to take a look at how South Carolina firms are doing. n

Reviewed

Sole Practioners

Total Enrolled Firms 119

Peer review is designed to be educational for firms in public accounting to further enhance the quality in their performance of accounting and auditing work. It also allows firms to communicate with their fellow peers on the objectives of the accounting profession.

Engagement Type

AICPA Program

No A&A

As a result of the law passed in 2006, the S.C. Board of Accountancy modeled its program after the American Institute of Certified Public Accountants (AICPA) program. SCACPA serves as the administering entity for the AICPA Peer Review Program and also administers the S.C. Peer Review program for those firms not eligible to enroll in the AICPA program. According to Peer Review Manger Glenna Osier, the SCACPA Peer Review Committee anticipates performing 168 reviews in 2013.

AE Program

620

The chart to the left shows the total number of engagements reviewed and the number identified as â&#x20AC;&#x153;not performed and/or reported on in conformity with applicable professional standardsâ&#x20AC;? from peer reviews performed during 2011. The Standards state that an engagement is ordinarily considered to have not been performed in accordance with professional standards when deficiencies, individually or in aggregate, exist that are material to understanding the report or the financial statements accompanying the report, or represent an omission of a critical accounting, auditing, or attestation procedure required by professional standards. n South Carolina CPA Report

South Carolina

CPA GRAND STRAND

CATAWBA

Dues: $90 (18 months), includes discounted registration to CPE seminars and free family/networking event. • Aug. 19: Professional Issues and South Carolina Ethics (8 hours CPE) - Baxter Hood Center • Oct. 29: Federal Income Tax Update (8 hours CPE) Art Werner - Baxter Hood Center • Dec. 3: FASB/Forensic Accounting (8 hours CPE) Mark Hobbs - Baxter Hood Center

CENTRAL

Dues: $75 (18 months), includes discounted registration to CPE seminars, free socials and business meeting dinner. • Sept. 13: A Gift Bag of Individual Tax and Financial Planning Topics (8 hours CPE) Neil Brown - Doubletree by Hilton • Oct. 7: Professional Issues Update (2 hours CPE) Doubletree by Hilton Note: SCACPA will offer 2 hours Ethics and Professional Conduct for South Carolina CPAs on Oct. 7, before the PIU begins. • Nov. 15: Annual Tax Update (8 hours CPE) William Grooms - Doubletree by Hilton

COASTAL

Dues: $195 (18 months), includes free registration to CPE seminars (additional registration fee for Tax Update) and free registration to family/networking event • Sept. 24: Technology Update and A Survey of Tax Law and Regulatory Changes, focused on S.C. (8 hours CPE) Randy Johnston (6 hours), Jason Sweatt (2 hours) – Embassy Suites, N. Charleston • Oct. 3: Professional Issues and South Carolina Ethics (4 hours CPE) – Embassy Suites, N. Charleston • Nov. 12: Surgent McCoy's Best Federal Tax Update (8 hours CPE) Jack Surgent – Embassy Suites, N. Charleston

Dues: $187 (18 months), includes free registration to CPE seminars, holiday party and student recruitment fair • Aug. 27: Professional Issues and South Carolina Ethics (8 hours CPE) - Horry Georgetown Tech • Sept. 24: CCU Meet & Greet - 5:30 - 7:30 p.m. (Registration at 5:00 p.m.) Logan's Roadhouse, Myrtle Beach • Nov. 20: A&A Update (8 hours CPE) Russ Madray

PEE DEE

Dues: $75 (18 months), includes free registration to CPE seminars and free special events • Aug. 26: Professional Issues and South Carolina Ethics (4 hours CPE) - SIMT • Oct. 30: Federal Income Tax Update (8 hours CPE) Art Werner - SIMT

PIEDMONT

Dues: $50 (18 months), includes discounted registration to CPE and free social events. Note: The Piedmont Chapter is subsidizing a portion of the dues for 2013-2014 and the membership renewal will remain $50 (covers 18 months) for members. • Sept. 23: Anderson - Professional Issues and South Carolina Ethics (6 hours CPE) • Sept. 24: Greenville - Professional Issues and South Carolina Ethics (4 hours CPE)

SEA ISLAND

Dues: $202 (18 months), includes free registration to CPE seminars and special events • Oct. 4: Professional Issues and South Carolina Ethics (8 hours CPE) • Nov. 1: Federal Income Tax Update (8 hours CPE) Art Werner

Is YOUR Data Secure? • Security Policies

FOOTHILLS

Dues: $60 (18 months), includes discounted registration to CPE seminars and three free social/networking events • Sept. 25: Professional Issues and South Carolina Ethics (4 hours CPE) • Oct. 28: Federal Income Tax Update (8 hours CPE) Art Werner

South Carolina CPA Report

• Risk and Vulnerability Assessments • Penetration Tests

Don West

(803) 315-1299 • don@dpwcpa.com CPA, CITP, eCPPT, CISA, CISSP Member SCACPA, AICPA, ISACA, InfraGard, (ISC)²

(888) 557-4814 | www.scacpa.org

2013-2014 CHAPTER LEADERSHIP CATAWBA CHAPTER

President - Amy Homstead Rubin, CPA Vice President - William L. Faris, CPA Engine Power Source, Inc. Secretary/Treasurer - Glenn E. Savage, CPA Chapter Representative - Beth T. Zamorski, CPA, CGMA, Todd, Bremer & Lawson, Inc.

CENTRAL CHAPTER

President - Russell Quattlebaum, CPA, Elliott Davis, LLC Vice President - William James Stevens, CPA, The Hobbs Group, PA Secretary/Treasurer - Christopher Douglas Hinchee, CPA, McGregor & Company, LLP Chapter Representative - Lesley H. Kelly, CPA, McGregor & Company, LLP

COASTAL CHAPTER

President - E. W. Sanders, CPA, AIFA, QKA, Presidium Retirement Advisers, Inc. Vice President - Betsy Y. Moseley, CPA, Jackson & Gravesen, CPAs, PA Secretary/Treasurer - Crystal Lynn McGuire, CPA, LS3P Associates, Ltd. Chapter Representative - Zoe M Davis, CPA, CFE, Hubbard Davis CPAs, LLP

{

FOOTHILLS CHAPTER

President - Christopher Todd Holtzclaw, CPA, William Barnet & Son, LLC Vice President - Christina A. Braswell, CPA, PricewaterhouseCoopers, LLP Secretary - Brandon S. Thomas, CPA, PricewaterhouseCoopers, LLP Treasurer - Michelle Shadden Gneisig, CPA, CGMA, CBA, Tindall Corporation Chapter Representative - Cheryl O. Lang, CPA,CGMA, Tindall Corporation

GRAND STRAND CHAPTER

President - J. Burt Huggins, CPA Smith Sapp Bookhout Crumpler & Calliham, PA Vice President - Sharon D. Proctor, CPA, Smith Sapp Bookhout Crumpler & Calliham, PA Secretary/Treasurer - Deborah H. Armstrong, CPA, Armstrong Accounting, CPA, PA Chapter Representative - Amanda T. Hallman, CPA, CMAC, Inc. D/b/a Logan's Roadhouse

PEE DEE CHAPTER

President - Joseph L. Griffin IV, CPA, WebsterRogers LLP Vice President - Lawrence S. Kennedy Jr., CPA, McCall Farms

My number is… 100

July 1, 2013 to June 30, 2014 Secretary/Treasurer - Stephanie L. Denham, CPA CGMA, Pathology Service Associates, LLC Chapter Representative - William R. Barefoot, CPA, WebsterRogers LLP

PIEDMONT CHAPTER

President - Brad Ledford, CPA, CMA, CGMA, Staffing Partners, LLC Vice President - Stephen C. Stokes, CPA, Stokes & Bales, CPAs Secretary - Arthur Russell Tompkins, CPA MBA, CGMA, VistaBank Treasurer - James Frederik ten Pas, CPA, Dixon Hughes Goodman, LLP Chapter Representative - Philip R. Snipes, CPA, Ernst & Young, LLP

SEA ISLAND CHAPTER

President - Raymond H. Williams, CPA, MCCS-SC Vice President - Christopher M Linkimer, CPA, Carecore National, LLC Secretary - Amy Lou Graybill, CPA, Robinson Grant & Co., PA Treasurer - Amy L. Cavanaugh, CPA, June & Associates, PA, CPAs Chapter Representative - Patrick P. Carey Jr., CPA, Carey & Company, PA

}

ADP helps me add add $100K $100K to my bottom line… line…

So So what’s what’s your your number? number? Higher Higher revenues revenues and and profits? profits? More More and and happier happierclients? clients?Fewer Fewer work hours? An earlier retirement date? ADP can help add it all up for you, work hours? An earlier retirement date? ADP can help add it all up for you,with withproducts products and and services services that that go go beyond beyond just just payroll. payroll. Like Like cash cash flow, flow, risk risk and and talent talent management management solutions so you work smarter, easier and more efficiently. ADP offers solutions so you work smarter, easier and more efficiently. ADP offersinnovative innovativesolutions, solutions, superb superb service service and and outstanding outstanding results. results. Discover YOUR number – by calling OUR number: 855-408-3751 or visit us at www.accountant.adp.com/my-number Discover YOUR number – by calling OUR number: 855-408-3751 or visit us at www.accountant.adp.com/my-number

HR. Payroll. Benefits. HR. Payroll. Benefits. © 2012 ADP, Inc. ADP and the ADP logo are registered trademarks of ADP, Inc. In the Business of Your Success is a service mark of ADP, Inc. © 2012 ADP, Inc. ADP and the ADP logo are registered trademarks of ADP, Inc. In the Business of Your Success is a service mark of ADP, Inc.

focus on cPe

Older American Series NOVeMBer 4 – wesT cOLUMBiA case studies—Older Americans’ Tax issues - resolving Planning issues with real-Life scenarios (91213AM) Small groups will work to resolve financial and tax planning issues using real-world scenarios. This comprehensive course will focus on the income and estate tax issues while helping the participant become a more effective guide for older clients. This course will provide cases where groups will identify strengths and weaknesses in client scenarios as well as the effective strategies and techniques for helping clients achieve their financial goals.

NOVeMBer 4 – wesT cOLUMBiA estate Planning for Older Americans: Guiding Your clients to their Best Options (91213PM) Having the difficult conversation with clients about estate planning can be made easier. Attend this course to explore the various planning techniques available for older Americans to help guide them to the best option(s) for them. This course will present the strategies available for older Americans so as to identify the optimal technique for specific situations.

NOVeMBer 5 – wesT cOLUMBiA investment strategies for Older Americans - what are the Tax impacts? (91313AM) Discover why an individual’s risk tolerance is not constant throughout all life stages. This comprehensive course will explore a universe of investments ranging from most conservative to moderate risk with a special emphasis on investments chosen to supplement income in the post-retirement years. This course will provide details on timing choices to sell investments, asset allocation models, protective hedging strategies, time horizon benchmarks, active and passive investments, and the tax ramifications of these various investments.

NOVeMBer 5 – wesT cOLUMBiA communicating effectively with Older Americans- How to speak with Older Americans and Their Beneficiaries (91313PM) Discover the effective listening and speaking techniques that are important when working with older clients. This comprehensive course will delve into potentially sensitive issues arising when communicating with older clients and offers challenging and fun exercises for participants to use in bettering their communications with older clients. This course will provide ways to become a better communicator with all clients, and the older client in particular, and ways to make your office friendlier in order to facilitate optimal communication between you and the older American.

ABOUT THe DiscUssiON LeADer: The discussion leader for this series is Carla Gordon, CFP, CSA, MSFS of Chicago, Ill. In addition to serving as a special consultant to the Examinations Division of the AICPA, Gordon has trained thousands of financial professionals to successfully complete rigorous examinations to become stockbrokers and Certified Financial Planners. She is the author of over 20 financial training and textbooks, including Pension Design for the Small Business, and Principles of Retirement Planning. She has completed a set of five continuing education courses for the AICPA. Gordon serves on the faculties of DePaul University and Kenneth Zahn Financial Planning classes (CFRS) exam reviews.

ADDiTiONAL iNfOrMATiON Area: Taxes credits: 4 Level: Advanced fees (per course): Early Bird (members only): $135, Members: $150, Nonmembers: $200, *Printed Manual: $15 Location: SCACPA Learning Center, West Columbia *Each course provides a PDF version of the materials for the exclusive use of the registrant.

South Carolina CPA Report

(888) 557-4814 | www.scacpa.org

focus on cPe

2013 Conferences & Workshops AUGUsT 22-23, 2013 emerging Leaders conference (417113)

OcTOBer 17, 2013 New! small firms conference (413213)

Marriott City Center, Columbia www.scacpa.org/emergingleaders • Professional and Executive Presence • Professional Issues Update • Forensic Accounting Interviewing Techniques • SC Tax and Property Tax Update • Creating a Career Path • Networking for Results • A&A Update • The New Normal of Estate Planning • Ethics and Professional Conduct for SC CPAs • The Power of Positive Communication • Emotional IQ: Techniques for Managing People Fees: Early Bird $280 (members only), Member: $305, Non-Member: $505

SC Bar Conference Center, Columbia www.scacpa.org/smallfirms2013 • Ethics and Peer Review • Data Security • Succession Planning • Aligning People and Culture Fees: Early Bird $210 (members only), Member: $235, Non-Member: $335

sePTeMBer 26. 2013 fraud conference co-sponsored with the Palmetto chapter of Acfe (411213) SC Bar Conference Center, Columbia www.scacpa.org/fraud2013 • Ethics • Sovereign Citizen Movement and Redemption Schemes • IRS Criminal Investigation Overview and Update Fees: Member: $210, Non-Member: $335

OcTOBer 22, 2013 financial Planning conference (418013) SC Bar Conference Center, Columbia www.scacpa.org/financialplanning2013 • Reaching Your Financial Goals • Investment Strategy Techniques • Having Difficult Financial Conversations • Estate Planning Update Fees: Early Bird $210 (members only), Member: $235, Non-Member: $335

NOVeMBer 5, 2013 Governmental workshop (413013) Columbia Conference Center, Columbia www.scacpa.org/governmental2013 • Fundamentals of Accounting for Government Contracts and Grants • Benford's Law-A Valuable Audit Tool • Doing the Right Thing Especially When it is Not Easy • Something Just Doesn't Smell Right Down at the Sewer District Fees: Early Bird $210 (members only), Member: $235, Non-Member: $335

NOVeMBer 13-14, 2013 Annual summit (411013) DoubleTree by Hilton, Columbia www.scacpa.org/summit2013 • Implication of the Health Care Reform Act • Federal and State Tax Credits for Small Businesses • Estate and Gift Tax Hot Topics • Financial Reporting Framework for SMEs • Collaborative Bookkeeping and Cloud Accounting Solutions • How to Create the Virtual Office • Backup, Business Continuity, and Disaster Recovery: Why All Three? • Ethics • A&A Update • FASB Update • Fraud Techniques • Identity Theft Fees: Early Bird $335 (members only), Member: $360, Non-Member: $560

DeceMBer 5-6, 2013 Accounting & Auditing conference (416013) Marriott Downtown, Charleston www.scacpa.org/A&A2013 • A&A Update • Analyzing Financial Statements Including Cash Flow Analysis • Peer Review Deficiences • Fair Value and Disclosures • GASB Update • Technology Update • Financial Reporting Framework for SMEs • Preparing for External Auditors • Group Audits • Analytical Procedures for Reviews and Audits

Fees: Early Bird $390 (members only), Member: $415, Non-Member: $615

(888) 557-4814 | www.scacpa.org

South Carolina CPA Report

S.C. Association of CPAs Your staff deserves the best training available but providing it can be a challenge. Now you can bring top-quality programs directly to your office with the South Carolina Association of CPAsâ&#x20AC;&#x2122; On-site Customized Training program. From technical topics to professional ethics to leadership and management courses, we can find a great fit for any organization and any budget.

Ask how you can get your On-site Training Program started today! Contact Reva Brennan, MPA, CAE at (803)791-4181 x103 or rbrennan@scacpa.org, or visit www.scacpa.org/onsitetraining.

South Carolina CPA Report

(888) 557-4814 | www.scacpa.org

focus on cPe

2013 Federal Tax Update With Walter Nunnallee

In this course, Walter will review current year developments and planning ideas affecting individual, corporate and business income taxation using a combination of humor and examples. He will emphasize tax developments that affect 2013 tax return preparation and 2013 tax planning for individuals, corporations, and non-corporate businesses. The course format is designed to update CPAs with various levels of experience. The materials include: • A checklist of developments first effective in 2013. • A checklist of retroactive developments that may require amended returns. • A detailed planning section, including important individual and business planning ideas. • Selected new or modified Federal tax forms for 2013.

Five Convenient Locations To Choose From! Dec. 2 - Greenville – Embassy Suites Hotel & Golf Resort Dec. 16 - Columbia – DoubleTree by Hilton Dec. 30 – Myrtle Beach – Marina Inn at Grand Dunes Dec. 31 - Charleston – Marriott Downtown Charleston Dec. 16 - Webcast – www.scacpa.org/taxwebcast13

for event details or to register, go to www.scacpa.org/register

Professional Issues Update & S.C. Ethics Hear the latest on the issues and trends affecting the CPA profession and businesses of every size. SCACPA’s Professional Issues Update will be held in nine cities across the state. Register now to earn two hours of free CPE. Plus, you have an opportunity to earn additional CPE that can be applied to your ethics requirement. Aug. 19: Baxter Hood Center, Rock Hill (8 hours CPE) Aug. 26: Southeastern Institute of Manufacturing and Technology, Florence (4 hours CPE) Aug. 27: Horry Georgetown Tech, Myrtle Beach (8 hours CPE) Sept. 23: Hilton Garden Inn, Anderson (6 hours CPE) Sept. 24: Hilton, Greenville (4 hours CPE) Sept. 25: Marriott, Spartanburg (4 hours CPE) Oct. 3: Embassy Suites, N. Charleston (4 hours CPE) Oct. 4: Hilton Head Island Beach and Tennis Resort, Hilton Head (8 hours CPE) Oct. 7: Doubletree by Hilton, Columbia (4 hours CPE)

January 13,14 &15, 2014

www.k2e.com/ski

Beaver Run Resort & Conference Center in Breckenridge, CO The 2014 Multi-state CPE & Ski Conference supported by nineteen state CPA societies is pleased to bring you the very best CPE & Ski Conference. The Conference features six 4-hour sessions on a wide variety of today’s most popular CPE topics. The instructors rank among the top CPE instructors in the United States. To receive an information packet containing detailed course descriptions and instructor biographies, please call K2 Enterprises at (888) 542-9390. Or you may register by faxing the registration form below to the Colorado Society at (303) 773-6344 or mail the form to the Colorado Society of CPAs, 7887 E. Belleview Avenue, Suite 200, Englewood, CO 80111. Hotel Accommodations: Reservations can be made by calling Beaver Run Resort & Conference Center at 1-800-525-2253. Use group code CPA44X.

(888) 557-4814 | www.scacpa.org

South Carolina CPA Report

Classified

ADVERTISER INDEX

Buying or Selling an Accounting Practice? Want a “clean exit?” Experience The Seamless Succession™-to facilitate the absolute best transfer of your accounting practice. Learn more about our unique, 5-step process…..and view our most up-todate opportunities for purchase. We are affiliated with Accounting Practice Sales, North America’s Leader in Practice Sales. Please visit www.PoeGroupAdvisors.com or email us at info@poegroupadvisors. com . 888-246-0974 • Columbia, SC $235,000 • Florence, SC $295,000 • Columbia, SC $195,000 • Foothills, NC $550,000 Recently Sold: Rock Hill, SC $1,500,000., Columbia, SC $115,000., Piedmont, NC $415,000

LOCAL FOCUS - PERSONAL SERVICE The focus of our firm is only on CPA and Accounting practices in the Carolinas and The Carolinas’ Resource Southern Virginia. This allows us the time to for Accounting Practice Sales understand local issues and opportunities and enables us to be close enough to provide personal service. Our purpose is to help owners decide if and when they should sell or transition out of their practice. As part of the process, we help them develop and implement a plan to maximize the firm’s value and address any concerns about transitioning it to a new owner. This allows us to offer buyers firms with demonstrated value and a plan to sustain that value through the transition. To learn more, visit www.stratfordconsultinggroup.com or call Bill Britt @ 866-768-0089.

Key Challenges, con’t. from page 19 lifestyle, they may be challenged to fully develop thoughts and concepts through email, letters and reports as opposed to sending short-hand communication. Related is the challenge that the accounting profession itself faces in recruiting today’s young professionals. Today’s educational system is trending toward more creativity and technology-driven careers. As a result, the accounting profession is challenged to rebuild and market its image in a way to attract creativeminded individuals who may potentially view this profession as one made up of stuffy employees using an abacus. In addition to recruiting talented graduates, the profession must concern itself with keeping

South Carolina CPA Report

those talented young professionals who likely envision that they will have a number of employers throughout their careers. While a number of challenges face entry-level professionals in our industry, through cooperation and open-mindedness, both younger and older generations can learn from one another while improving the quality and diversity of our industry. n

Accounting Practice Sales www.accountingpracticesales.com Inside Back Cover ADP accountant.ADP.com Page 37 American Pensions www.ampen.com Inside Front Cover Aon/BB&T Insurance Services/ AICPA Professional Liability Insurance Program www.cpai.com Page 14 CGMA www.cgma.org Page 6 Jerry Meek www.jerrymeek.com page 27 John F. Hamilton, CPA JOHNFH@aol.com Page 34 Richardson Plowden Attorneys at Law www.richardsonplowden.com Page 9 Don West don@dpwcpa.com Page 36 WebsterRogers, LLP www.websterrogers.com Page 25

Get Social with SCACPA on Facebook, Twitter and LinkedIn!

Harris Darver, CPA, is a manager with McGregor &

Company, LLP, in Columbia. He currently serves as chair of the YCPAs Leadership Cabinet and is a member of the YCPAs Network.

Visit www.scacpa.org/socialmedia (888) 557-4814 | www.scacpa.org

! e t i s b e w r u no o w e n s â&#x20AC;&#x2122; t a h check out w .poegroupadvisors.com www

south carolina Association of cPAs

PRSRT STD US POSTAGE PAID PERMIT NO. 1146 Columbia, SC

570 Chris Drive, West Columbia, SC 29169

the future 2013 Annual Summit | Nov. 13-14 | DoubleTree by Hilton, Columbia

Change is not just occurring – it’s accelerating. For CPAs, this means new challenges and new opportunities as technological, regulatory and economic changes converge.

take charge of your future at the 2013 Annual Summit.