WashingtonCPA 2015 Spring by Washington Society of CPAs

washington

CPA Spring 2015

Volume 58, Number 4

Data Breach - How to Protect Your Firm - What to Do in the Event of a Data Breach

2015-2016 Board of Directors Nominees So, You Think Youâ&#x20AC;&#x2122;re Not a Leader? Diversity and Inclusion: Resources for Your Organization

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WashingtonCPA Spring 2015

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CONTENTS

wa s h i n g t o n

CPA www.wscpa.org • memberservices@wscpa.org Tel (425) 644-4800 • Toll free in WA (800) 272-8273 Fax (425) 562-8853 902 140th Ave NE Bellevue, WA 98005-3480

BOARD OF DIRECTORS Heather L. Fitzpatrick Chair William A. Simer Vice Chair David J. Miniken Treasurer Lucy L. Liu Secretary Glenn G. Wisegarver Immediate Past Chair Richard E. Jones President & CEO

Laurie J. Anderson Marinilka B. Kimbro Thomas G. Donaghy Amanda V. O’Rourke Kirsten S. Duke Andrew L. Read Dean A. Granholm Abby M. Sanders Robert L. Grannum Joseph P. Smith Robert W. Heller CHAPTER BOARD CHAIRS Craig S. Connell Bellevue Area Alex R. King Central Molly Vander Woude Central Northwest Diane Bingaman Olympia Michael T. Enos Sammamish Valley Rachel T. Sites Snohomish County Dani L. Espinda South King County David P. Stubing Southwest Robert S. Plumb Spokane Sean P. Kinney Yakima

Jeanette Kebede

Data Breach 5

Think You Are Too Small to Be a Target of Cyber Crime? Think Again.

How to Protect Your CPA Firm From a Data Breach

10 Four Critical Steps to Take in the Event of a Data Breach

Editor

The WashingtonCPA is published by the Washington Society of Certified Public Accountants for its members. Views and opinions appearing in this publication are not necessarily endorsed by the WSCPA. The products and services advertised in The Washington CPA have not been reviewed or endorsed by the Washington Society of Certified Public Accountants, its board of directors or staff. The WashingtonCPA (USPS 009754) is published four times annually by the Washington Society of Certified Public Accountants, 902 140th Avenue NE, Bellevue, WA 98005-3480. $12 of members’ annual dues goes toward a subscription to The WashingtonCPA. Periodicals postage paid at Bellevue, Washington and additional mailing offices.

14 2015-2016 Board of Directors Nominees 21 Thank You to Washington CPA Foundation and CPAPAC Contributors

25 So, You Think You’re Not a Leader? 28 Diversity and Inclusion: Resources for Your Organization

Cover photo: © iStock/Tatsianama POSTMASTER: Send address changes to The WashingtonCPA, c/o WSCPA, 902 140th Avenue NE, Bellevue, WA 98005-3480.

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DEPARTMENTS 4

Leadership Lens

Member Benefits

News Briefs

CPE Digest

18 Advocacy

42 Conferences

24 Foundation

Registration Form

Classified Ads

Networking Events

WashingtonCPA Spring 2015

LEADERSHIP LENS

A Fond Farewell ... By Rich Jones, CPA, CGMA, President & CEO

hink back to what you were doing 25 years ago. In my case, my family had just relocated to Seattle from San Jose, California and we were enjoying learning about a new community and its culture. Twenty-five years ago, the cable TV show The Simpsons was launched. The show is still in active production today, having produced almost 600 episodes, and is the longest-running American sitcom of all time. Ann Young started her career at the WSCPA 25 years ago and her more than 6,000 duty days makes her one of our longest-serving employees, far surpassing the number of episodes of The Simpsons. On May 31, 2015,Ann will be retiring from the Society. As Homer Simpson would say: D’oh! In March 1990, Ann began working at the WSCPA as Association Secretary for Lauren Thomas. Over the years, she worked with John Plymyer, Marcia Holland-Risch, and me, so she has worked with all of the Society’s CEOs except the late Russell Davis, who was our first CEO. During her career here, she has done just about everything, including answer phones, update and edit materials, handle facilities, plan parties, retreats, and staff meetings, and take minutes for Board of Directors meetings. In 2006, Ann began handling Human Resources and Board of Directors Liaison responsibilities. Her current title is Manager of Governance/HR. She is responsible for organizing and scheduling meetings, preparing minutes, and following-up to ensure completion of open items for the Board and for a number of Board committees. In addition, she is responsible for planning and scheduling many staff-level committees including staff meetings, staff retreats, and staff outings. She is also our lead human resources professional and is responsible for benefits administration as well as hiring and on-boarding all new employees and transitioning people as they leave the organization. Ann has been my co-pilot for the past 10 years as I have had the privilege to lead our organization. She has been a great sounding board for me and I have sought her advice on many occasions, as has our staff. She is our office’s resident mother, grandmother,

Ann Young was born in Chicago and lived in that city and surrounding suburbs for most of her formative years. She attended North Park University on the north side of Chicago. After graduation, she worked at the Allstate Insurance Company’s home office as a production assistant (which included responsibilities such as secretary, script girl, and occasionally “talent”) producing films and training materials to instruct Allstate agents. She then took a 10 year break from working to raise her four sons, and later worked at home for a few years as a single mom. Ann made the decision to attend her 20 year high school reunion and has been forever glad that she did. There she met the love of her life, Richard Young. They married soon after, and with Richard’s son they now had enough boys to field their own basketball team. They moved to San Antonio, Texas where Richard had landed a teaching position at the University of Texas at San Antonio. Richard has his PhD from Stanford University and is a professor of Political Science. While in Texas, Ann also worked at UTSA at the Center fo r x A rc h a e o l o g i c a l Research. In 1987, Richard was hired to teach at Seattle University, so their family packed up, moved to Bellevue, and bought the house they still live in today. Ann and Richard are the proud grandparents of four granddaughters, including Bella (pictured above with Ann).

continued on page 6

WashingtonCPA Spring 2015

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LEADERSHIP LENS

Think You Are Too Small to Be a Target of Cyber Crime? Think Again. By Heather Fitzpatrick, CPA, CGMA, WSCPA Chair for 2014-15

Unfortunately, it appears that my confidence in hackers’ disinterest in small business is as misplaced as it is common among small business owners. A recent study by technology security giant Symantec suggests that 70% of small business owners feel they are unlikely to become targets of cyber crime. The numbers prove us wrong. The Symantec study also shows that about 30% of all targeted cyber attacks are directed against business with less than 250 employees. One in five small businesses has already been the focus of a cyber attack of some sort. Unfortunately, according to the National Cyber Security Alliance, if this happens to you, your business’ chance of survival isn’t good. About 60% of the small businesses that are hacked will go out of business within six months. Those numbers are quite sobering, but they prompted additional questions. Why is that the case? Why would someone be interested in hacking into a small business? Surely there are greater challenges and rewards elsewhere… Apparently, there are several reasons small businesses are targets. One of them is the simple fact that we don’t have a substantial force of IT experts employed in house to protect our assets. In fact, many small business owners do their own tech-

nology maintenance. Since we’re business people with many demands on our time, it’s not uncommon for cyber security to slip on our “to do” list of things we need to get done. This makes us easier targets and prime testing grounds for “beginning hackers” who want to hone their skills.

including any on shared or attached network drives, and request a ransom of several hundred or thousand dollars from the business owner in order to release the files. This scheme emerged in 2012 and grew 500% over the course of 2013, and small businesses

One in five small businesses has already been the focus of a cyber attack of some sort. Unfortunately, according to the National Cyber Security Alliance, if this happens to you, your business’ chance of survival isn’t good. About 60% of the small businesses that are hacked will go out of business within six months.

When they do get in, they can cause a great deal of damage. They can steal client and employee data, ranging from names to social security numbers. They can commandeer our social media, email or website accounts, causing embarrassing damage to our reputation. And in some cases, they can completely destroy entire data systems, leaving us scrambling to figure out what to do next. Perhaps the most frightening trend in the past few years is the emergence of ransomware. Hackers encrypt your files,

s the number of serious data breaches within high profile organizations such as Target, Sony and Anthem Blue Cross has increased, I’ve been thankful I am the CEO of a small business. My business, I have reasoned, is too small to be of interest to hackers. My greater concerns have always been the loss of data to fire, hard drive failure, or laptop theft.

and consumers are the most common victims. Sometimes, the small business is just the host. Hackers will often target small businesses who serve larger companies or who might be acquired by larger companies. These companies can serve as information arsenals to cyber criminals who are preparing for an attack on the larger organization, even providing access through partner systems. In some cases, hackers hide inside small companies for years waiting for the continued on page 6

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WashingtonCPA Spring 2015

LEADERSHIP LENS

A Fond Farewell.. continued from page 4

Think You Are Too Small to Be a Target of Cyber Crime? Think Again. continued from page 5

or in my case, sister. Our staff know they can discuss anything with her and it will be kept in confidence. I have never had a colleague who is as proactive as Ann. Her organizational abilities are phenomenal, and she handles all of her tasks with the sweetest disposition possible. We all have our mental lists of the nicest people we know. If you have had the privilege to know and work with Ann, I bet she is on your list. She is on mine.

appropriate opportunity to launch an assault on their host’s large client.

Many of our members have known Ann for many years and, upon learning of her pending retirement, have asked me to be sure to let them know when we are having her going away party. Typical of Ann, she does not want to be in the spotlight, so instead we are having a simple staff farewell party in her honor. However, if you want to send a note of thanks or best wishes to Ann, please send it to me at rjones@wscpa.org and I will make sure she gets it. Thank you Ann for everything you have done for WSCPA and our members. We all wish you and Richard a long, fun, and healthy retirement.

So, what can a small business owner do to protect his or her company? The answers are fairly consistent:

WashingtonCPA Spring 2015

Of course, predatory hackers aren’t the only form of risk. In fact, they are the source of only 34% of all data breaches. Almost as common are data, passwords, or other information that is accidently made public (representing 29% of all breaches), and the theft or loss of a computer or drive (representing 27% of all data breaches).

• • • • •

Use anti-virus and malware software Make sure you update your software routinely with patches issued by the manufacturer Restrict access to critical systems to the people who must have access Don’t expose essential services or systems to the internet Develop a culture of safety, including routine education

•

• •

about the risks and encouragement to follow solid cybersafety protocols Use solid passwords (any word found in the dictionary and used as a password can be broken by a hacker in less than 30 seconds) Change passwords routinely Backup your systems and store those backups offsite

Any IT professional will tell you these are common best practices. However, small business owners confess that they are inconsistently applied, largely because most of them don’t see themselves as targets for cybercrime. If you are a small business owner, I hope you’ll join me in taking your name off the list of the uninformed and make a resolution to protect your business in 2015. Heather Fitzpatrick, CPA, CGMA, is the President & CEO of MarketFitz, Inc.You can contact her at hfitzpatrick@marketfitz.com.

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DATA BREACH

How to Protect Your CPA Firm From a Data Breach By Tom Parker

n today’s world, being able to access information anywhere, anytime, from any device is a blessing and a curse. You’re able to save time by working whenever and wherever you want, but you’re also opening yourself up to hackers looking to attack and exploit specific vulnerabilities within your firm or company. If you think for one moment that you aren’t at all vulnerable, think again. It’s going to happen … at some point, hackers will steal your firm information, and much more likely, your clients’ information. The harsh reality is that data breaches happen, and turning a blind eye to it or being in denial won’t help one bit. You must think of it not as a matter of “if” you will get attacked, but rather, “when and how.” Think of it as health insurance; no matter how much you exercise and eat healthy, you can still get sick. The good news is the healthier you are, the faster you recover and the quicker you find something wrong. In case you’re still not sold on the realities of cyber attacks and data breaches, the Identity Theft Resource Center estimates there was an average of 15 data breaches a week in 2014, and according to USA Today, 43% of U.S. companies had a data breach in the past year. Moreover, cybercrime cost the global economy $575 billion and the U.S. economy $100 billion annually, making it the largest hit to any country, according to a report from Intel and the Security and the Center for Strategic and International Studies. The more data and information out there, the greater the risk. Consider all of the information your firm maintains, from credit card and bank account numbers, to client names, social security

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In today’s world, being able to access information anywhere, anytime, from any device is a blessing and a curse. You’re able to save time by working whenever and wherever you want, but you’re also opening yourself up to hackers looking to attack and exploit specific vulnerabilities within your firm or company.

numbers, tax IDS, and anything else that can personally identify an individual. Before the Internet became mainstream in the mid-90s, hackers were isolated.They were probably more successful picking your pocket or even rummaging through your trash than finding anything of value online. Today, it’s a different story – even the most unsophisticated hacker can create real problems for an organization. All the hacker has to do is copy a more-seasoned hacker’s code from the Internet and run it. It’s very scary, but it is the reality in which we live. Think of it as a chess game where you must protect

your queen from being captured. In your firm, you must work toward protecting your organization from cybercrime. Without fail. Whether you are a managing partner of a large firm, working as a staff accountant or even a sole proprietor, you are your clients’ trusted advisor. You are in charge of managing your clients’ most personal information, including their taxes and finances. As a result, there is no room for error when it comes to protecting your firm from a data breach. In order to keep your firm and its clients as safe as possible, here are some WashingtonCPA Spring 2015

DATA BREACH

Protecting your firm from a data breach isn’t difficult, but it does require constant attention, something I like to refer to as “simple system hygiene.”

preventative practices for consideration:

Create Security Awareness

First, you must look at your systems not as something that just processes information, but something that “lives” and needs to be protected. Build a culture of accountability with your staff and in your firm. It is everyone’s responsibility to think about security and it’s time to make this personal by reminding the staff about their own privacy. After all, would you want your own social security number, bank accounts or any other data to be breached? If it can happen to you, it can easily happen to your clients. Email is a huge problem. Even one email to a co-worker can trigger the breach, if sensitive information is transmitted. Phishing, too, is getting more sophisticated – an email that looks like it’s valid from your bank could cause great harm. No one should ever ask for your password in an email, so clicking a link inside your email is one of the most popular ways a system gets infected. An easy way to tell if the email is a phishing expedition is to hover over or right click the “from” address. Look at the domain – if it’s anything that seems suspicious, it probably is. It’s also a good idea to educate your clients about email in terms of receiving messages and automatically

WashingtonCPA Spring 2015

opening them. For example, tell them about phishing and what you’re doing within the firm to protect their information. Not only may this conversation save them from having their data hacked; the fact that you are having the discussion also goes a long way to maintaining the trust and loyalty they have in you as their financial advisor.

Maintain Simple System Hygiene

Protecting your firm from a data breach isn’t difficult, but it does require constant attention, something I like to refer to as “simple system hygiene.” At the very least, you want to update your security on a regular basis. This comes down to patching your systems, and usually involves more than Microsoft Windows or Mac system updates, such as Java, for example. Anti-virus software helps, too, but you can’t always rely on standardized programs, such as McAfee or Norton, to protect you. All software providers provide security updates, so if you aren’t getting these or are unaware of where to get the updates, you should contact your provider right away.

Establish Policies and Procedures

In my experience, firms and organizations that have clear, written systems’ policies and procedures are far less vulnerable to data breaches than companies that don’t. Creating these policies is good for several reasons. First, it gives

your staff a roadmap to follow and takes away any guesswork on their part as to what they can, for example, download from the Internet. Second, it helps protect your clients’ personal information because you’ve implemented best practices in your organization. Another plus is that you can tell your clients about your proactive stance in mitigating any potential risk. That establishes a great deal of trust between you and your clients. Your policies and procedures should be a working document, constantly updated as needed, and if your firm is large enough, you may have an IT professional on staff who can take it on. Regardless, you can think of these polices and procedures as the repository for a security awareness program. The main function of the program is to make all of the staff aware of what they need to do to protect the firm’s sensitive information. As basic as it sounds, include, for example, procedures on password length and how often a password ought to be changed. It is good, basic hygiene to change your passwords every 90 days. Speaking of passwords, I know you’ve seen this time and time again in your firm and probably at home – yellow sticky notes stuck to the monitors with passwords. You may think your co-workers aren’t paying attention to the notes, let alone the cleaning crew who comes in at night. Losing control of your passwords can easily lead to lots of www.wscpa.org

DATA BREACH

problems, and you do not want to be the one responsible for the breach. Thanks to advanced technologies, there are quite a few password programs on the market that can be had for a firm or company at a very reasonable cost. These cloud-based programs will create secure passwords and store them for you. Search for a program that makes sense for your firm and/or ask your colleagues in other firms or companies for their recommendations.

Establish Access Controls

As a firm grows, you must implement access controls, and while you might think that a sole proprietor doesn’t need to worry about access, you’re greatly mistaken. Even the presence of one more staff person – administrative or otherwise – could create an opportunity for a data breach. Access controls focuses on “who” gets access to “what’ information. Think of this in terms of your finances. Your admin may prepare the checks for you to sign, but he or she shouldn’t also have signing authority. Similarly, you want to ensure you aren’t giving access to everything in your company to everyone in your company. Instead, give employees access only to what they need access to, and if you get pushback, you may have a larger problem. Access controls are also referred to as role-based security, granting access designed for each employee’s specific role. A good place to write down your role-based security procedures and processes is in the document you created when you looked at simple system hygiene.

Conduct Regular Risk Assessments

Risk assessments should be conducted at least once a year. It’s important to pick a vendor to do this that isn’t just running tools against your network. The vendor needs to look at your company holistically, and understand that you need a mobile, secure workforce. This is vital www.wscpa.org

since your CPAs and staff are out in the field talking to clients and working from their locations. The end game here is to take a risk-based approach to your systems and processes instead of just thinking of them as stand-alone components that do not integrate with the rest of your organization. There are lots of control frameworks out there, including the ISO 27,000 Standards and COSO (Committee on Sponsoring Organizations) framework. Chances are the Washington Society of CPAs, and certainly AICPA, maintain resource materials on these frameworks. Or, you can do a simple search for information security controls and choose one that fits your firm.

Don’t Forget About Physical Security

The last piece to discuss is physical security. Protecting your firm from a data breach isn’t just about systems and processes, but also about leaving that data exposed outside of an electronic system. I touched on this earlier when talking about passwords, but physical security goes much further than sticky notes.

Learn more Don’t Be a Target – Secure Your Systems WEBCAST (15WBAMY26A) Date

May 26

CPE

4 technical credits

There’s a good reason CPAs are referred to as trusted advisors; don’t make the mistake of thinking about trust just on your accounting and tax advice.

Tom Parker is chief information officer for Avalara. Prior to joining Avalara, Tom was director of application security at Microsoft, accountable for the And, while many firms have tried to overall risk managego paperless with cloud-based storment of its IT appliage, the old 4-drawer metal file cabinets cation portfolio. He also served as strategic hanging around in your storeroom are security advisor for the North Central Distotally exposed. trict at Microsoft in Minneapolis, and helped Take an inventory of exactly where shape Microsoft’s enterprise application you are vulnerable and begin to create platform business architecture, and supportpractical policies around physical security. ing models and tools. In addition, Tom was No one is saying to completely ditch the a managing consultant for Shavilk Technolofile cabinets, but you could do something gies, a senior security engineer and division as simple as locking the cabinets or stor- manager for the National Security Agency, ing your files in a secure location offsite. and has held several leadership roles in the United States Navy. Contact Tom at tom.parker@avalara.com. Be Your Clients’ Trusted Advisor Security is not something to take lightly and you cannot let it go to the back burner.You must be holistic, do your research and seek help from professionals. With an issue like a data breach that can make or break your life’s work, you must take action and do everything you can to protect yourself and your clients. WashingtonCPA Spring 2015

DATA BREACH

‘Our data’s been breached! What do we do now?’ Four critical steps to take in the event of a data breach By Randy R. Werner, J.D., LL.M./Tax, CPA

he external auditor was assigned to audit the financial statements of a multi-state grocery store chain. During the audit, he uploaded payroll and pension plan data for about 5,000 employees onto his laptop computer, planning on encrypting the data when he got back to his office. He stopped for lunch at a restaurant, leaving his laptop in the car. When he returned, the doors were unlocked and the laptop was missing. What should the auditor do now?

1) Report the loss immediately. Many victims err in not reporting the theft immediately, either because they’re embarrassed about the loss, worried about losing their job, or thought they just misplaced the device and would find it soon. However, every firm should persuade its leadership and its employees to adopt a strict policy that requires them to report losses immediately. This allows the firm to prevent further losses and to begin the repair and retrieval process right away. Some states’ laws require that clients be notified within a short period of time following the detection of a data loss. 2) Activate safeguards for protecting personal information. A remote mobile device security service is an effective way to provide safeguards capable of activating a “kill switch” if security has been compromised. Remote security enables a user to prevent access to protected files, or to execute complete data wiping in the event a computer, tablet, smart phone or USB storage drive has been lost or stolen. The service may also track devices when they are connected to the Internet. Safeguards that protect information without user involvement are effective in

WashingtonCPA Spring 2015

Cyber liability or data breach insurance is recommended for covering data breach response costs, including notifications to clients and third parties, and computer network assets such as data. Some insurance policies cover legal services, forensic services, business interruption expense, as well expense stemming from cyber extortion and cyber terrorism.

reducing vulnerabilities. Encryption policies and other protective actions can be managed by the firm or by a third-party managed service provider (MSP). Both approaches should protect the organization independently of the end-user and should work whether the computer is online or offline. Some services are available by online subscription, without the need to purchase or support hardware or software infrastructure.

3) Notify the firm’s attorney, risk adviser/insurance company. The firm will need to verify whether it’s a breach as defined by current state and/or federal laws. Your attorney and risk adviser will assist in making that determination. The advisers should also be able to help you fulfill the reporting and notification requirements under law. Cyber

liability

data

breach

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DATA BREACH

insurance is recommended for covering data breach response costs, including notifications to clients and third parties, and computer network assets such as data. Some insurance policies cover legal services, forensic services, business interruption expense, as well expense stemming from cyber extortion and cyber terrorism. Some state laws require law enforcement be notified in the event of a theft. This may trigger news media inquiries. If the media focus on a data breach, news reports may affect the firm’s public image and reputation. In such situations, a crisis management or public relations firm may help to control communications and protect the firm’s reputation. Credit monitoring services and identity theft education and assistance services are also recommended. Cyber liability or data breach insurance will often cover expenses stemming from those services as well. Breach response services are sometimes included in a cyber-liability insurance program. 4) Activate the firm’s incident response plan. If the firm is prepared, it will have an incident response plan in place to manage a breach. The best time to plan for an emergency is before it happens.The worst time to figure out how to respond to a crisis is while it is happening. An effective plan will help the firm: • •

• •

quickly and efficiently recover from security incidents, respond in a systematic manner to incidents and carry out all necessary steps to correctly handle an incident, prevent or minimize disruption of critical information systems, minimize loss or theft of sensitive or critical information,

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An incident response plan should be part of a broader information security program that satisfies the provisions of state and federal regulations. Some state regulations require such programs to be in writing.

• •

ensure that firm resources are used wisely and efficiently, and govern the flow of communications among the stakeholders (internal) and other organizations (e.g., insurance companies and law enforcement agencies).

Outline the basic steps of the plan by establishing checklists and clear action items. Immediately upon discovery of a cyber incident, the following questions usually arise: • • • • • •

What happened? What data was affected? How many individuals were affected? Is there a legal obligation to notify? (Consult with the firm’s attorney.) Should the affected individuals be notified immediately? Who needs to be notified? Business partners? Law enforcement or regulatory agencies?

If the firm has not yet prepared an incident response plan, assign individuals to be responsible for preparing a plan.

They should be able to recruit others to a response team if necessary. Team members need to know where client and personal information is stored. Inbound and outbound sources of information, and all methods of communicating such information, should be addressed by the plan. An incident response plan should be part of a broader information security program that satisfies the provisions of state and federal regulations. Some state regulations require such programs to be in writing. One advantage to having a written security program is that it can be taught to staff to ensure that each employee knows the firm’s expectations and what he or she is required to do, including best practices for addressing new and continuing risks (e.g., social engineering, phishing and web application attacks). Update the program to reflect new laws or regulations. Training sessions to update staff on changes will make it a dynamic, living program for the staff. Several benefits come with a strong information security program. Besides helping to ensure that private information remains confidential and available only to authorized parties, a strong program helps the firm avoid or reduce the high costs associated with data breaches and becomes a powerful selling point appreciated by many clients in this era of heightened security awareness. R a n d y x R . x We r n e r, J.D.,xLL.M./Tax,xCPA, i s x a x L o s s x P r ev e n tionxExecutivexwith C AMICOx(www. camico.com).xShe responds to CAMICO loss prevention hotline inquiries and speaks to CPA groups on various topics. WashingtonCPA Spring 2015

NEWS BRIEFS

Join the conversation! LinkedIn

Are you a member of the WSCPA group on LinkedIn? Join the conversation today! Plus, follow WSCPA news and find event photos on Facebook and Twitter.You may have missed the following discussions, news and posts:

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Seeking advice regarding inheritance from England Seeking advice on prior year incorrect income tax form filings Are consulting and operating fees deductible on WA State B&O tax when invoiced to a foreign entity? EB-5 Regional Center needs accounting and auditing assistance. Anyone do that kind of work?

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WSCPA Blog

Accounting for the Changing Face of Leadership by Ed Thomas, Deloitte IRS Updates and News Releases

Read WSCPA News & Commentary at www.wscpa.org/news

IRS Makes it Easier for Small Businesses to Apply Repair Regulations to 2014 and Future Years

Article submissions welcome. Contact webmaster@wscpa.org.

In Memoriam The WSCPA holds in memory with families and the larger community, these members who have recently passed on: Eileen R. Bruce David D. Chandler Clifford W. Davidson Philip King Hintz John R. Mahoney Gustav F. Raaum Kathleen J. Tomsick John N. Zaremba www.wscpa.org/community/ in-memoriam

WashingtonCPA Spring 2015

Follow the WSCPA on Twitter @wscpa

2015 Holds Great Promise for Accounting Profession by Barry Melancon, AICPA

NOTICE TO MEMBERSHIP Member admonishment:

The American Institute of Certified Public Accountants (AICPA) and the Washington Society of Certified Public Accountants (WSCPA) have admonished Kenneth G. Smith, of Edmonds, Washington, under the automatic disciplinary provisions of the AICPAâ&#x20AC;&#x2122;s bylaws. This action was taken in connection with the disciplinary action of the Washington State Board of Accountancy.

Member termination:

Dennis Duban of Los Angeles, CA Violation: Mr. Duban was convicted of a crime under federal law State Board of Accountancy sanctions: Mr. Duban voluntarily surrendered his license to practice in Washington. The Washington Society of Certified Public Accountants has terminated the membership of Dennis Duban. www.wscpa.org

NEWS BRIEFS

Renew, Update and Win! Thank you for your membership and continued support. It is time to renew your membership for June 1, 2015 - May 31, 2016. Soon you will be receiving an invoice in the mail and an email with links to renew your membership online. Please take a moment to renew your membership by June 1 to ensure uninterrupted access to your member benefits. Renew and update your interests by June 1 to be entered to win one of four $300 Amazon gift cards!

How to Renew and Update Your Profile ONLINE www.wscpa.org

To Renew with Credit Card Go to www.wscpa.org > click “MyWSCPA” and login Click “My Membership” > click “Renew”

Your website login is your email address. Click “Forgot Your Password” if you need to reset your password.

To View/Print Invoice & Pay by Check Go to www.wscpa.org > click “MyWSCPA” and login Click “View All Invoices” > click “Renew”

PHONE (425) 644-4800

(800) 272-8273 (toll-free in WA)

RENEW & UPDATE YOUR INTERESTS BY JUNE 1

Win a $300 Amazon Gift Card

MAIL

WSCPA, 902 140th Ave NE Bellevue,WA 98005-3480 (include invoice)

Renew your membership and update your interests by June 1, 2015 (at midnight) and you’ll be entered to win one of four $300 Amazon gift cards!

accounting@wscpa.org (include invoice)

Updating your interests will enable you to receive WSCPA communications with more relevant, customized content.

Need help renewing your membership? Call (800) 272-8273 | email memberservices@wscpa.org

To update your interests call (800) 272-8273 or: • Go to www.wscpa.org • Click “MyWSCPA” and login • Click “Manage My Interests”

If you have questions about your membership, please contact Jennifer Ayoub, Member Services Coordinator, at jayoub@wscpa.org or (425) 586-1142. Are you on leave or unemployed? Give us a call to see if you qualify for a reduced rate. www.wscpa.org

WashingtonCPA Spring 2015

BOARD OF DIRECTORS

2015-2016 Board of Directors Nominees The Board of Directors is pleased to present for your review nominees for the Society’s 2015-16 Board of Directors. In accordance with Article VI of the bylaws, all nominees will be declared elected by the secretary at the annual meeting unless other nominations, supported by at least one percent of membership, are received by April 1, 2015. If a contest for one or more positions develops, an election for those positions will be held at the meeting.

David J. Miniken, CPA Position

Vice Chair

Term

1 year; automatically becomes chair 2016-17

Board service

Since 2011

Dave Miniken, CPA, CGMA, MBA, is a member of the management team at Sweeney Conrad, where he serves as the Director of Sweeney Conrad’s audit and accounting practice. Dave has 20 years of experience providing all phases of audit and financial accounting advisory services to a wide range of industries and to a diverse group of privately-held businesses and their owners. Dave has served in leadership positions with a number of civic organizations, including the Bellevue Downtown Association, Bellevue Rotary, and the Bellevue Schools Foundation. Dave and his wife, Leslie, live in Issaquah with their two daughters.

WashingtonCPA Spring 2015

Kirsten S. Duke, CPA Positions

Board service

Joseph P. Smith, CPA

Treasurer

Position

Secretary

1 year

Term

1 year

Since 2013

Board service

Since 2014

Kirsten Duke, CPA, CGMA is the VP, Finance and Human Resources of DomainTools. A graduate of the University of Washington, Kirsten began her career at Ernst & Young in the Assurance and Advisory Business Services Practice. After nine years in public accounting, Kirsten moved on to industry serving as Director of Technical Accounting for Getty Images, as well as Controller of a small public biotechnology company in Bothell before coming to DomainTools. Kirsten’s previous volunteer activities include President of the Sauvage Healing Heart Guild, Board Member and Finance Chair of the Hope Heart Institute, as well as Finance, Long Range Planning and Investment committees at the Seattle Yacht Club.

Joseph Smith, CPA, CGMA, is the Associate Vice President for Finance at Gonzaga University. Prior to joining Gonzaga, Joe was a Senior Manager in the audit practice of KPMG LLP in Seattle. Joe began his public accounting career with Arthur Andersen LLP. He is an Adjunct Professor of accounting at Gonzaga’s School of Business Administration, and also serves as a board member for Catholic Housing Communities (a division of Catholic Charities of Spokane) and RiteCare of Washington. Joe is a graduate of Gonzaga University and Palomar College.

www.wscpa.org

BOARD OF DIRECTORS

Meet the Incoming Chair: William A. Simer, CPA

Ryan T. Bartlett, CPA

Justin A. Bourn, CPA

Position

Director

Position

Director

Term

3 years

Term

3 years

Ryan Bartlett, CPA, is the Director of Finance at Delta Dental of Washington. Prior to joining Delta Dental, Ryan was a Senior Manager in the A&A practice at Bader Martin, PS, where his areas of expertise included employee benefit plans, investment funds, and professional service firms. Ryan is the Chair of the WSCPA Professional Conduct Committee, as well as the Board Treasurer for WestSide Baby. Ryan and his wife enjoy camping, hiking, and vacationing with their two young daughters.

www.wscpa.org

Justin Bourn is the Director of Accounting at Willett, Zevenbergen & Bennett. Prior to joining Willett, Zevenbergen & Bennett, Justin worked in industry for approximately nine years after beginning his career at an international accounting firm. Justin currently serves on the WSCPAâ&#x20AC;&#x2122;s Engagement Report Acceptance Body and is an active engagement peer reviewer. He is also a member of the University of Washington Alumni Association Board of Trustees. Justin and his wife, Tiana, live in Kenmore with their daughter and son.

William Simer, CPA, is a shareholder in the Spokane office of Eide Bailly LLP. With more than 35 years of experience in both public accounting and industry, Bill has held key leadership positions in many community organizations, including Greater Spokane Incorporated, the Spokane Symphony, and the Fox Theater. He serves on the board of the Eastern Washington University Foundation and the board of the Inland Northwest Community Foundation. A member of the AICPA, Bill earned a B.A. in Professional Accounting from Eastern Washington University. Bill and his wife, ReneĂŠ Rolando, live in Spokane.

WashingtonCPA Spring 2015

BOARD OF DIRECTORS

Remaining on the Board The following members currently serve on the board and will serve on the 2015-16 Board in the following positions: Chair: William A. Simer, CPA

Immediate Past Chair: Heather L. Fitzpatrick, CPA, CGMA

Kristine L. Lambright, CPA Position

Director

Position

Director

Term

3 years

Term

3 years

Kris Lambright, CPA, CGMA, is the Chief Financial Officer for YWCA Seattle | King | Snohomish. She has been with the YWCA since 1999, CFO since 2004. Kris oversees accounting, payroll, risk management, investments, and management information systems. Her prior work experience included government, public and private industry accounting. Kris is a trustee with College Spark Washington, volunteers for Page Ahead Children’s Literacy Program, and is active in the WSCPA’s Not-for-Profit Committee. She was recognized by the Puget Sound Business Journal as CFO of the Year in 2009. A graduate of the University of Washington, she lives with her husband in Seattle.

Michael Reeves, CPA

WashingtonCPA Spring 2015

Michael Reeves, CPA, is the Office Managing Partner, Assurance Services for BDO’s Seattle office. Michael specializes in financial statement audits of companies primarily in the technology, life sciences, manufacturing, and venture capital industries. Michael has nearly 25 years of experience in public accounting and also worked in Amazon.com’s financial reporting group. Michael is a graduate of the University of California, Los Angeles and is a member of the Seattle Children’s Hospital Board of Trustees, as well as its Audit Committee Chairman. He is also a past Chairman of the Board of Directors of the Epilepsy Foundation Northwest. Michael lives in Sammamish with his wife, Katie, and two sons.

President & CEO: Richard E. Jones, CPA, CGMA

Directors: Laurie J. Anderson, CPA Thomas G. Donaghy, CPA Lucy L. Liu, CPA Kirsten S. Duke, CPA Robert W. Heller, JD, LLM Amanda V. O’Rourke, CPA Abby M. Sanders, CPA Joseph P. Smith, CPA

www.wscpa.org

Youâ&#x20AC;&#x2122;re invited!

ANNUAL MEETING

What will the future hold?

June 10, 2015 Washington State Convention Center, Seattle 7:30 - 9:00 am featuring Futurist Jared Weiner, Executive Vice President Weiner, Edrich, Brown Sponsorship opportunities available. Call (425) 644-4800 for details.

www.wscpa.org

WashingtonCPA Spring 2015

ADVOCACY

Passing a Bill in Olympia ... By Kimberly Scott, CAE

he process sounds easy enough: you have an issue you need fixed, you find a legislator who agrees your issue needs to be fixed, and you draft a bill. From there it is reviewed by a legislative committee, gets a public hearing, and then the committee decides whether to pass it, reject it or take no action. Now it starts getting complicated. If the bill passes out of committee it is read on the floor and sent to the Rules Committee. The Rules Committee can either place the bill on the second reading calendar for debate before the entire body, or take no action. At the second reading, a bill is subject to debate and amendment before being placed on the third reading calendar for final passage. If you are lucky enough to get your bill through one of the houses, it goes through the same procedure in the other house. If amendments are made in the other house, the first house must approve the changes. When the bill is accepted in both houses, it is signed by the respective leaders and sent to the governor. The governor signs the bill into law or may veto all or part of it. If the governor fails to act on the bill, it may become law without a signature. To make it even more challenging, your bill is typically one of hundreds, if not thousands, introduced any given year. This year, the WSCPA introduced two potential bills. One provides an exemption for CPAs from the Private Investigator statute. The second is to create a scholarship fund for accounting students in Washington State. The first bill, House Bill 1263 (HB1263), is the bill that creates an exemption for CPAs and has been met with great support so far. Things change daily, but as of

WashingtonCPA Spring 2015

This year the WSCPA introduced 2 potential bills. One provides an exemption for CPAs from the Private Investigator statute. The second is to create a scholarship fund for accounting students in Washington State.

writing this, the bill has made it out of the House of Representatives and has been heard and passed by the Senate Committee on Commerce and Labor. WSCPA member, Pete Miller, CPA, CFE, did an outstanding job testifying on behalf of the WSCPA in both houses. If the bill passes successfully, Washington will be the 12th state to get an exemption for CPAs. The second bill seemed a little more challenging, so it was introduced in both the House and the Senate at the same time (referred to as companion bills) as HB1814 and SB5534. The Higher Education Committee found the idea unique and each house passed it out of committee. However, in the House of Representatives it died due to lack of action of the Rules Committee. On the Senate side, it was passed all the way through, and now SB5534 is back in the House. WSCPA members Heather Fitzpatrick, Brett Jordan, Dan Thompson and Ryan Cranke all took time to testify in Olympia. Many other members have sent letters in support to their Representatives and Senators, and all of your efforts are appreciated. The WSCPA also monitors and comments when necessary on bills other organizations and individuals bring to Olympia. This year, bills have been introduced to create a tax division of the court of appeals, to create a patent troll prevention act, to â&#x20AC;&#x153;ban the boxâ&#x20AC;? on employment applications, and many other potential

bills that could directly affect how CPAs do business in Washington State. Our legislative session is for a set amount of time as determined by the state constitution. This year it is scheduled to meet for 105 days, starting January 12, 2015 and ending April 26, 2015. Within that set amount of days are various deadlines for when proposed bills need to be heard and voted on in each house. This year is a budget year as well, and there are still a lot of questions around what will be proposed in the budget. The legislators need to fund education under the McCleary decision, and address the mental health care lawsuit. Although revenues are on the rise, it is not certain if projected income will meet expenses. What will the proposed budgets look like in each house? Will there be proposals for new revenue? Possibly the biggest question: Will they be able to get this done by April 26th? If you are interested in tracking the bills mentioned above, go to apps.leg. wa.gov/billinfo and type in the bill number you are interested in. Kimberly Scott, CAE, is WSCPA Vice President of Member Services. You can contact her at kscott@wscpa. org.

www.wscpa.org

Source: http://leg.wa.gov/legislature/Pages/Bill2Law.aspx

www.wscpa.org

www.wscpa.org/advocacy

WashingtonCPA Spring 2015

www.wscpa.org

WASHINGTON CPA FOUNDATION

Thank You for Your Support of Washington CPA Foundation and CPAPAC Washington CPA Foundation

CPAPAC

www.wscpa.org/foundation

www.wscpa.org/cpapac

Your generous support of the Washington CPA Foundation allows us to continue with our core mission of raising funds to support deserving Washington based accounting students and programs. In 2015, 21 students were selected to receive $64,000 in scholarships. They represent 10 different schools and have an average GPA of 3.86.

Thanks to the many contributions from WSCPA members, the CPAPAC continues to provide feedback to lawmakers on issues that affect our profession, as well as educate legislators on the crucial role that CPAs play in our economy. We also strive to ensure that the Washington State Board of Accountancy has the ability to stay independent and effective. Advocacy doesn’t cost. It pays.

Foundation Circle Contributors Named Scholarship Contributors Roy J. Polley Memorial Scholarship The Aguiar Group Accounting Scholarship* Baird Family Accounting Scholarship* Clark Nuber Accounting Scholarship Deloitte Accounting Scholarship EY Accounting Scholarship KPMG Accounting Scholarship

Moss Adams Accounting Scholarship PwC Accounting Scholarship Sambataro Family Foundation TrueBlue Accounting Scholarship George J. Waterman Memorial Scholarship Bill Wells Accounting Scholarship*

Foundation Contributor Level

Contribution

Named Scholarship Contributor Chairman’s Circle Senior Executives Circle Executives Circle Leaders Circle Senior Contributor Supporting Contributor

$3,000+ $2,500+ $1,000-$2,499 $500 -$999 $250 - $499 $100 - $249 $50 - $99

Contribution of at least $3,000 toward a named scholarship to be awarded the next academic year. * Foundation Board Members

Chairman’s Circle

Senior Executives Circle

Richard E Jones, CPA, CGMA

James R Ladd, CPA, CGMA

Executives Circle Goldman Sachs & Co Ms Pat L Bohan, CPA,CGMA,CGFM*

Mr Weldon T Burton, CPA Mr Scott E Eschbach, CPA

Mr Richard D Greaves, CPA* Mr Brett James Jordan, CPA*

Leaders Circle Russell Investments Ms Laurie Jo Anderson, CPA Mr Robert M Cole, Jr, CPA, CGMA, MA* Ms Jolene G Cox, CPA Mr Thomas G Donaghy, CPA Ms Heather L Fitzpatrick, CPA,CGMA Mr Rob Grannum, CPA

Mr Robert W Heller, JD,LLM Mr Christopher William Hesse, CPA Mr Mark Alan Hugh, CPA Mr Glenn M Light Ms Lucy L Liu, CPA Dr Gerhard G Mueller, PhD Ms Amanda V O’Rourke, CPA

Ms Abby Mae Sanders, CPA,CFE Mr Joseph Paul Smith, CPA Ms Julleen J Snyder, CPA,CGMA Sweeney Conrad PS Mr William Lloyd Wells*

LEARN MORE about the Foundation and CPAPAC at www.wscpa.org. CONTRIBUTIONS to the Washington CPA Foundation and CPAPAC may be made at any time during the year, or when you renew your Society membership every spring. www.wscpa.org WashingtonCPA Spring 2015

WASHINGTON CPA FOUNDATION

Thank You to Contributors to the Foundation and CPAPAC The following individuals and organizations donated to the Washington CPA Foundation or CPAPAC from March 2014-February 2015.

Foundation Contributors Senior Contributors

Mr Robert W Ash Mr Sidney H Boles, CPA Ms Adele Brady Bolson, CPA Mr Robert Joseph Bowls, CPA Mr Sesinando N Cantor, CPA, MBA, CGMA Ms Rebecca A Cates, CPA Mr Robert A Chace, CPA,ABV Mr Tarun Chadha Ms Bonnie Lynn Curran, CPA Mr Chris Adam Davies, CPA,CMA Dixon Golf Inc Mr Alan L Erlenbush, CPA Mr Robert L Gerth Mr Brian G Gosline, CPA,JD Mr Charles Hallett, IV, CPA,CGMA Ms Wendy F Jones, CPA,CMA,CFE,CIA Mr Gregg D Jordshaugen, CPA Mr Michael J Kander, CPA,CIA Mr Donald W Luby, CPA Mr Donald W McHargue Mr Daniel B Myers-Power, CPA Mr E William Parker Mr E William Parker Ms Sharon Kay Philpott Ms Rachel M Robert, CPA Ms Emily Reodica Rollins, CPA Mr Michael D Sweeney, CPA Mr William E Tremper Mr Edward C Wartelle Mr Lucas Michael Zarecor, CPA, MA*

Supporting Contributors

Ms Carmen J Aguiar, CPA,PFS,CFP* Mr Sang Mok Ahn, CPA, CMA, CFM Mr Michael R Ammerman, CPA Ms Robin Amundson, CPA,EA Ms Erica Marie Ash, CPA,MBA Mr Gordon P Asheim, CPA Mr Donald F Aubrey, CPA Ms Janis Augustin, CPA, MBA Mr Bill Bailey Ms Mary E Bailey, CPA Ms Kiyosha B Baird, CPA* Mr John P Baker, CPA Mr Tyler John Baldwin, CPA

“This scholarship is allowing me to accomplish my goals and become the first person in my family to graduate from college.” Angela Hansen, 2014 scholarship recipient

Thank you

Mr Marc G Bateman, CPA Ms Karen A Bell, MBA Marcia K Bennison, CPA Mr Robert Charles Best, CPA, JD Mr Bruce E Bixler Mr Gregg Blodgett Ms Jerrilyn Ann Bogart Mr Jeffrey J Bogdanovich, CPA, PFS Ms Geraldine L Booth, CPA Mr Robert S Boyd, CPA Mr Paul W Brandstetter, CPA Mr William H Bratton, CPA Mr Bruce D Breitenbach, CPA Ms Margaret E Brennan, MBA Mr Rustin Porter Brewer, CPA Mr Gunnar Brokhaug, CPA Mr Brian Richard Bronk, CPA Mr David A Brown Ms Christine B Brunner, CPA Ms Linda M Canney Ms Debra Lee Carlson Mr Edward T Carson, CPA Mr Douglas B Chandler, CPA Ms Amanda Yiwen Chang, CPA,MSTax Mr Marc David Christianson, CPA Ms Robin A Clark, CPA Mr Roger F Clark, CPA Ms Barbara J Clevenger, CPA Mr James E Coates, CPA Mr Alton R Cogert, CPA,CGMA,CFA,CAIA Mr R Douglas Collier, CPA Mr Marvin A Condotta, CPA Mr Jay F Cramer Mr Michael R Cross, CPA Mr Stephen G Dashiell, CPA Mr Stefan Nikolai Davidson, CPA Ms Billie De Vore, CPA Mr Joseph P Deacon, CPA Mr Wesley L Delaney, CPA Mr Matthew Ervin DesVoigne, CPA Ms Carol Elaine Didier, CPA Mr David L Dierst, CPA Ms Eva M Wagner Donahoo, CPA Ms Kirsten Simpson Duke, CPA Ms Terri L W Dyer, CPA,CMA Mr Thomas Jefferson Eby, MBA Mr Robert J Erickson, CPA,JD Ms M Clydene Evans-Wenzel, RDH Mr Leon F Ficker, CPA Mr Daniel W Fisher, CGMA Mr Joseph R Forde, CPA

WashingtonCPA Spring 2015

View all scholarship recipients at www.wscpa.org/foundation

Mr Rick R Foster, CPA Ms Dana L Freeland, CPA, CFP Mr Norman H Frey Mr James H Gall, CPA,MBA Mr Steven C Garber, CPA Mr Chris A Gates, CPA,CGMA,CITP Mr Christopher W Goetz, CPA Mr Brian G Gosline, CPA,JD Ms Bonnie Louise Green, CPA Mr Gerald Greer, CPA Ms Harumi K Guiberson Mr Clarence G Guimond, Jr, CPA, CMA, CFM Mr Vaughn S Hagen, CPA Mr Michael P Hart, CPA, MPAc Ms Katherine H Hasegawa, CPA Ms Mary H Hawkins, CPA,MSTax Ms Sandra Jean Heffernan, CPA Ms M Suzanne Heidema, CPA Ms Jacqueline J Henry, CPA Mr Patrick Stuart Herrin, CPA Ms Shyh-Ing Hong, CPA Mr William D Hood, CPA Mr Stephen J Hopps, CPA Ms Barbara T Huang Ms Dixie A Hughson, CPA Mr Charles D Huibregtse, CPA Mr Michael K Hutchinson, CPA Mr Hitoshi Inoue, CPA Ms Cindy L Isaacson, CPA Ms Wendy S Jacobson, CPA Mr Ernest R Johnson Mr Ronald A Johnson, CPA, MBA Mr Waylon P Jones, CPA, CFE, CGMA Ms Mary E Joyce, CPA Ms Deborah J Juntunen, CPA Mr Arthur Y Kageyama Mr Osamu Kasuya Mr Raad T Kattula, CPA Ms Jo Ann Kelly, CPA Ms Marinilka Barros Kimbro, PhD Mr Katsunori Kitamura, CPA Ms Kristin L Knopf, CPA,CGMA,MBA,MPAcc Mr John P Koenes, CPA Mr Karl J Korsmo Mr Glenn E Kosai Ms Vildana Kunduklija, CPA Mr Stroud W Kunkle, CPA Ms Evelyn M LaFond Mr Antonio M Laliberte, JD Ms Nancy M Lalic, CPA,CFE,CGM,CITP Dr Margie Ness LaShaw, CPA Ms Amy Lewis

Mr Kenneth Cameron Lewis Ms Silvia Lim Ms Luellen H Lockwood, CPA,MBA,EA Ms Deborah Michelle Loober, CPA Ms Jessica J Lustig, CPA Mr Mark E Luthi, CPA Mr Richard C Lyga, CPA Mr John E Mackey, III, CPA Ms Joyce I Mahlum-Towle, CPA, CEA Mr Michael J Mansfield, CPA Mr Peter S Margitan Ms Carrie A Martin, CPA Ms Elizabeth Masnari, CPA,CISA Ms Lillian L McDonell, CPA,MBA Mr James W McKean, CPA Mr Donald L McKenzie, Jr Mr Tim McNees Mr Arthur D Miles, CPA Mr Louis H Mills, CPA Mr Donald W Mitchell Ms Patricia G Molnar, CPA Ms Sandra J Moss, CPA Mr Michael A Munger, CPA Mr Ryan L Munn, CPA Ms Anna K Murry Ms Bea L Nahon, CPA,CGMA Ms Raquel Renea Nelson, CPA Mr Daniel R Neuharth, CPA Mr Thomas P Nicholas, CPA Mr Kanwar Nijher, CPA Ms Aldryth Neilson O’Hara, CPA Mr Gregory L Oien, CPA Mr Terence V O’Keefe Ms Susan F O’Neill, CPA Ms Joanne Lynn Ort, CPA,MPAcc Mr Benjamin James Page, JD Mr Richard N Pahre, CPA Ms Un Hi Pak, CPA Mr Stephen Patterson, CPA Ms Rhoda M Pawlak Mr Ronald J Perkins, CPA Ms Hwan Ja Choi Perreault, CPA Mr Jack B Person, CPA Mr Scott Thomas Petersen, CPA Ms Molly M Philopant Mr Michael Charles Plato, CPA, EA Mr Michael J Plymale, CPA Mr Edward L Raisl, CPA Mr Robert J Rebar, CPA Ms Margo Reich, CPA Ms Penny Faye Ridderbusch, CPA Mr James J Rigos, CPA,JD,LLM,CMA

Mr Donald L Rodman, CPA,MBA Mr Harvey J Rothschild, III, CPA,MBA Mr Robert W Rubel, CPA Dr Debra Lee Sanders, CPA Ms Susan J Sanders, CPA Mr John P Sandstrom Mr Thomas P Sawatzki, CPA Mr Morgan L Schulte, CPA, CMA Mr David R Schultz, CPA Mr Harold G Shapiro Mr Christopher A Sherfey, MBA Mr Robert E Sherwood, MBA,CGFM Mr Jay T Shilhanek, CPA Ms Janis Harkins Simpson, CPA Mr Thomas R Skoda Ms Orphalee Smith, CPA,PFS Mr Russell Joseph Smith, CPA Mr Douglas D Springer, CPA,PFS Ms Cathy L St John, CPA Mr Donald L Starr, CPA Mr Donald W Stetson, CPA Mr George W Stewart, CPA Ms Beatrice M Stockwell, CPA Mr Jeff Sweet Mr Roger T Tanabe, CPA Mr Harry H Taniguchi, Jr Ms Linda M Teachout, CPA Mr Edward D Thomas, CPA Mr Lenin Thomas, CPA Mr Harold G Thompson, Jr, CPA Mr Tommy R Thomson, CPA Ms Susan L Thomson-Sines, CPA* Ms Anne Marie Trimnell Mr Robert A Underhill, CPA, JD Mr Jeffrey M Van Burkleo, MSTax Mr Robert W Wales Mr H Thomas Wick Ms Elizabeth Jenkins Widdison Ms Azucena A Wingard Mr Virgil Bruce Woodfield, CPA Ms Shari A Wood-Richardson, CPA Ms Danielle Renee Zlatich, CPA

www.wscpa.org

WASHINGTON CPA FOUNDATION

k u!

Learn more about CPAPAC and WSCPA Advocacy efforts at www.wscpa.org/advocacy

CPAPAC Contributors

Firms

KPMG LLP (Seattle)

Moss Adams LLP (Seattle)

PwC (Seattle)

EY (Seattle)

Ms Carmen J Aguiar, CPA,PFS,CFP Mr Matthew Edward Alexander Ms Laurie Jo Anderson, CPA Mr Gordon P Asheim, CPA Mr Richard F Askew Ms Mary E Bailey, CPA Ms Nicki L H Bailey, CPA Mr Kevin Baldwin Mr Tyler John Baldwin, CPA Ms Catherine Ann Banks, CPA Mr Marc G Bateman, CPA Mr Gregory M Beams, CPA Marcia K Bennison, CPA Mr Michael Phillip Bentley, CPA Mr Robert Charles Best, CPA, JD Mr Jeffrey J Bogdanovich, CPA, PFS Ms Pat L Bohan, CPA,CGMA,CGFM Mr Sidney H Boles, CPA Ms Geraldine L Booth, CPA Susan Borgman Mr Daniel L Boyd, CPA Mr Paul W Brandstetter, CPA Mr David A Brown Ms Christine B Brunner, CPA Mr Michael John Bursiek, CPA Mr Terry J Campbell, CPA, MSTax Ms Linda M Canney Ms Rebecca A Cates, CPA Mr Douglas B Chandler, CPA Ms Amanda Yiwen Chang, CPA,MSTax Mr Marc David Christianson, CPA Ms Jennifer Catherine Civitts, CPA Mr James E Coates, CPA Mr Robert M Cole, Jr, CPA, CGMA, MA Mr Craig S Connell, CPA Ms Jolene G Cox, CPA Mr Jay F Cramer Mr Michael R Cross, CPA Ms Vicky M Dalton, CPA, CGFM Mr Stephen G Dashiell, CPA Mr Stefan Nikolai Davidson, CPA Mr Chris Adam Davies, CPA,CMA Mr Charles R Davis, CPA

Ms Billie De Vore, CPA Mr Joseph P Deacon, CPA Mr Wesley L Delaney, CPA Mr Matthew Ervin DesVoigne, CPA Ms Carol Elaine Didier, CPA Mr Thomas G Donaghy, CPA Ms Kirsten Simpson Duke, CPA Mr Scott C Eastham, CPA Mr Scott E Eschbach, CPA Mr Leon F Ficker, CPA Ms Heather L Fitzpatrick, CPA,CGMA Mr Joseph R Forde, CPA Mr Rick R Foster, CPA Mr Norman H Frey Mr James H Gall, CPA,MBA Mr Steven C Garber, CPA Mr Chris A Gates, CPA,CGMA,CITP Mr Michael J Gillespie, CPA,MBA Mr M Raymond Gilmour, CPA, CFP Ms Sandee J Gimblett, CPA Ms Eleanor Ewing Gittelman, CPA Mr Christopher W Goetz, CPA Mr Bert R Golla, CPA Mr Brian G Gosline, CPA,JD Mr Edward John Grabowy, CPA Mr Rick H Graham, CPA Mr William J Graham, CPA Mr Rob Grannum, CPA Mr Alan L Gray, CPA Ms Bonnie Louise Green, CPA Mr Vaughn S Hagen, CPA Mr Michael P Hart, CPA, MPAc Ms M Suzanne Heidema, CPA Mr Robert W Heller, JD,LLM Ms Teresa A Herrin, CPA Mr Christopher William Hesse, CPA Mr Gary L Hielkema Mr James K Hilger, CPA Mr William D Hood, CPA Mr Stephen J Hopps, CPA Mr Navzer Rustom Hormazdi, CPA,MSTax,MT Mr Mark Alan Hugh, CPA

Mr Michael K Hutchinson, CPA Mr Hitoshi Inoue, CPA Ms Cindy L Isaacson, CPA Mr Thomas M Jeannet, CPA Mr Richard Edward Jones Tracy Jones Mr Waylon P Jones, CPA, CFE, CGMA Mr Arthur Y Kageyama Mr Osamu Kasuya Ms Kelly Anne Keller, CPA Mr James W Keyes, CPA Mr Herbert S Kim, CPA Ms Marinilka Barros Kimbro, PhD Mr Katsunori Kitamura, CPA Mr John P Koenes, CPA Mr Stroud W Kunkle, CPA Mr James R Ladd, CPA,CGMA Mr Antonio M Laliberte, JD Ms Nancy M Lalic, CPA,CFE,CGM,CITP Mr Michael R Lampton, CPA Mr Oren Mitchell Lang-Furr, CPA James Little Ms Lucy L Liu, CPA Mr Robert B Loe, CPA,MBA,CFE Mr Mark Tipton Long, CPA,MSTax Ms Deborah Michelle Loober, CPA Ms Jessica J Lustig, CPA Mr Mark E Luthi, CPA Mr Richard C Lyga, CPA Mr Carl A Mackleit, CPA Mr Anthony Thanh Mai Ms Elizabeth Masnari, CPA,CISA Mr Mark Robert Mathewson, CPA Mr Gregory Allen Matty, CPA Ms Lillian L McDonell, CPA,MBA Mr Robert Paul McKinley, CPA Mr Tim McNees Mr Arthur D Miles, CPA Mr Chad Christian Miller, CPA Ms Heather J Mills, CPA Mr Louis H Mills, CPA Mr David J Miniken, CPA, CGMA, MBA Mr Bruce I Mitchell, CPA, MBA Mr Donald W Mitchell

Mr Mark J Morrissette, CPA Mr Michael A Munger, CPA Mr Ryan L Munn, CPA Mr Kenshi Nagayoshi, CPA Ms Bea L Nahon, CPA,CGMA Ms Heather Marie Nelson, CPA Ms Raquel Renea Nelson, CPA Mr Daniel R Neuharth, CPA Mr Thomas P Nicholas, CPA Mr Gregory L Oien, CPA Mr Terence V O’Keefe Ms Susan F O’Neill, CPA Mr Douglas M Oord, CPA Mr Richard M Openshaw, CPA, CGMA, JD Konstantine Orfanos, CPA Ms Amanda V O’Rourke, CPA Ms Joanne Lynn Ort, CPA,MPAcc Audrey M Padmos Mr Richard N Pahre, CPA Mr Stephen Patterson, CPA Mr Jack B Person, CPA Mr Scott Thomas Petersen, CPA Ms Molly M Philopant Mr Michael Charles Plato, CPA, EA Mr Michael J Plymale, CPA Mr Edward L Raisl, CPA Mr Robert J Rebar, CPA Ms Margo Reich, CPA Mr James J Rigos, CPA,JD,LLM,CMA Ms Rachel M Robert, CPA Mr Robert W Rubel, CPA Mr Matthew Allen Rundorff, CPA Mr James Lee Russell, CPA Mr Craig S Ruthford, CPA Mr Joseph P Sambataro, Jr Ms Abby Mae Sanders, CPA,CFE Ms Susan J Sanders, CPA Mr John P Sandstrom Mr Thomas P Sawatzki, CPA Mr James D Schafer, CPA, MS Mr Daniel J Schroeder, CPA Ms Jacqueline M Selvar, CPA Mr Harold G Shapiro Mr Robert E Sherwood, MBA,CGFM

www.wscpa.org

Mr Jay T Shilhanek, CPA Ms Janis Harkins Simpson, CPA Douglas Sirotta Mr Daniel C Smith, CPA Mr Joseph Paul Smith, CPA Ms Kathleen K Smith, CPA Ms Orphalee Smith, CPA,PFS Ms Wakeya Smith Mr Douglas D Springer, CPA,PFS Mr Donald L Starr, CPA Mr Sidney J Starr, CPA, CFF, DABFA Mr Donald W Stetson, CPA Mr George W Stewart, CPA Mr Matthew J Stover, CPA Mr Scot A Studebaker, CPA Mr Roger T Tanabe, CPA Mr Timothy William Tasker, CPA Alexander C Thacher Mr Edward D Thomas, CPA Mr Lenin Thomas, CPA Mr Harold G Thompson, Jr, CPA Mr Terry M Thompson, CPA Mr Tommy R Thomson, CPA Ms Susan L Thomson-Sines, CPA Christian Tinder Mr Kenneth Larry Tracy, CPA Mr Robert A Underhill, CPA, JD Mr Jeffrey M Van Burkleo, MSTax Mr Robert W Wales Mr William Lloyd Wells Ms Linda Sue West, CFE Mr H Thomas Wick Ms Elizabeth Jenkins Widdison Ms Sandra Ashby Wight, CPA Ms Carol Ann Woo, CPA Mr Virgil Bruce Woodfield, CPA Ms Cheryl K Woods, CPA Mr Stephen J Zevenbergen, CPA

WashingtonCPA Spring 2015

WASHINGTON CPA FOUNDATION

What My WSCPA Scholarship has Meant to Me By Daniel Thompson

s I look back over the past year, many things have changed in my life. A year ago, I was taking accounting classes on a part time basis and working full time in a different field. I was planning on slowly working toward my accounting degree with the hope of graduating sometime in 2017. However, when I received a Washington CPA Foundation scholarship my plans changed. Four specific events have occurred that are the direct result of that scholarship. First, the scholarship allowed me to go to school on a full time basis. Prior to this school year, I was working full time as a high school math teacher, and taking classes in the evenings. I enjoyed my time as a teacher and over the years had encouraged many of my students to pursue careers related to mathematics. About four years ago I decided to take my own advice and began exploring the possibility of being an accountant. I began to take a few classes and eventually entered the University of Washington Tacoma in the fall of 2013 as a part time student. Receiving the scholarship gave me the financial security to become a full time student. Second, by becoming a full time student for this current school year, I will be able to graduate in June of 2015. At the rate I was taking classes before, I’m confident I would not have been able to graduate until 2017 at the earliest. Third, the scholarship I received was supported by a business headquartered in Tacoma called TrueBlue. At one of the scholarship awards nights, I met the director of accounting for TrueBlue, Karyn Huffman, who presented me with a certificate of accomplishment. A couple of months later, Karyn contacted me and offered me an internship with TrueBlue. The internship lasted about four months

WashingtonCPA Spring 2015

Watch amazing testimonials from a standout group of aspiring CPAs, including Daniel Thompson at: www.wscpa.org/ foundation/videos

“The scholarship made it so that I could attend [school] full time... it gave me an opportunity to go after my dream.” and gave me the opportunity to put into practice the concepts I had been learning in my classes. The fourth event is the culmination of the other three. This past January, after completing my internship, I was offered a position in the accounting department at TrueBlue. After my graduation this June, I will join their accounting staff as a full time employee.

this great job to look forward to. A student member of the WSCPA, Daniel Thompson is the 2014 recipient of the TrueBlue Accounting Scholarship through the Washington CPA Foundation.

I am very grateful for the Washington CPA Foundation scholarship I received and recognize the large impact it has had on my life. I can confidently say that without this scholarship, I would not be graduating in 2015 and would not have www.wscpa.org

LEADERSHIP

So, You Think You’re Not a Leader? By Ron Rael, CPA, CGMA

magine that you saw this headline in the WSCPA Short Form: “CPA Sells His Soul for Influence!”

Leadership is often perceived as having all the power and telling others what to do. Many share the confusion that managing and leading are the same effort. However, our profession has many managers but very few leaders. CPA managers love the status quo, while CPA leaders love change. CPA managers exist to control events and people, while CPA leaders thrive on chaos and confusion. Accounting is what we are trained to do; leading is what we must do. In this article, I will share three ways to own your responsibility to lead and what you can do to improve the quality of leadership in your business and in your life.

Poor leadership hurts everyone in your organization. Good leadership makes everyone better. Which do you choose? Poor leadership hurts everyone in your organization. Good leadership makes everyone better. Which do you choose?

How to Know if You are a As a profession, it is time we face some True Leader

Leadership and Your Bottom-Line

hard truths. Here are specific reasons I urge you to own up to the obligation to be a leader. •

•

Poor leadership practices cost the typical organization an amount equal to as much as 7 percent of their total annual sales. One poor leader costs a company over $126,000 in low productivity, high turnover, and dissension. Nearly 44 percent of American workers have worked for a supervisor or employer whom they consider abusive.

www.wscpa.org

You would likely be horrified because this person worked hard to gain a reputation for integrity and then chose to lose it. People who would sell their integrity or reputation for power do not understand leadership.

So that you accurately understand leadership, let’s start at the beginning, with my 1st Natural Law of Leadership: The success of any team, company, and nation is always dependent on the quality of its leadership. This means if your CPA firm, your accounting team, your not-for-profit, or your government agency is not at its best, the first step must be to improve everyone’s ability to lead. True leadership is not about having power; it is about having beneficial influence and impact. Do you want to have an impact on employees, clients, the public,

your children, or friends? Are you expected to influence others so that they pay taxes timely, act ethically, serve the customer, or deliver profitable revenue opportunities? If you answered “yes” to these questions, then you are a leader. High Road Institute, after studying over 12,000 leaders in the U.S. and Canada, found over 70 percent of people in a leadership role say, “I am NOT a leader. Please don’t apply that label to me.” These individuals—and you might be one—are reluctant to be defined as “the one in charge.” Consider this: What do the responsibilities of a CFO, a controller, a business owner, a parent, a CPA firm partner, an executive, a volunteer, or a change agent all have in common? •

You have people relying on you to accomplish something. WashingtonCPA Spring 2015

LEADERSHIP

It is normal to feel reluctant about being the one people look up to. Yet, to gain respect and get things done, you must overcome this innate reluctance. You are uncomfortable because leading is both natural and unnatural. The unnatural part of leading is what I call the art of leadership. It’s scary to realize that everyone is looking at you for guidance and direction. It’s intimidating to know that should you fail to deliver, many people could get hurt.

To obtain the respect you deserve, you must first grow comfortable leading yourself. Self-leadership is defined as the internal ability to convince oneself to make the best choices and decisions on a moment-by-moment basis throughout the day. The 2nd Natural Law of Leadership states: You cannot lead others until you can lead yourself.

Many in our profession are uncomfortable with the responsibilities, burdens, and high cost of being designated as the one in charge. The first and foremost reason people are fearful is the myth that a leader is perfect, or that a leader should never make mistakes.

• • •

You have an impact on the outcome and the means to achieve it. You must rely on others to achieve the outcomes. You influence others by your words and actions.

That is what a leader does. If any of these conditions apply, you are a perceived by others as the person with the reins. Therefore, you are supposed to act and think like a leader! All professions need leaders—people who want to influence the direction and tone of their chosen profession. However, when your reluctance is obvious, people could disrespect you, ignore you, or go around you. Once this happens, it is hard to regain your influence.

WashingtonCPA Spring 2015

Now that you recognize you are the one in charge, but may be uncomfortable with this responsibility, I’ll share three keys to help you own the obligation to have beneficial impact and influence.

First Key: Own Your Reluctance

The first key to being a person of influence and impact is to accept and acknowledge that it is okay to be a reluctant leader. Many in our profession are uncomfortable with the responsibilities, burdens, and high cost of being designated as the one in charge. The first and foremost reason people are fearful is the myth that a leader is perfect, or that a leader should never make mistakes. The second reason for declining this honor is ultimate accountability.When you are the one in charge the buck stops with you. There is no room for excuses, blaming others, or claiming “I didn’t know.”

Second Key: Adjust Your Attitude

You may wonder, “How do I lead myself?” The answer is the second key to feeling comfortable with leader responsibilities.You start by internalizing that true leadership is an attitude, not a calling. Your reluctance to lead from the front ceases once you adopt the leader attitude: “I can and will have an impact and make a difference for others.” Leadership is not a box on the organization chart or an elected office. Leadership is not about the title or the perks. Leadership does not come through education or with age. You learn how to lead by leading.x As you learn to lead, you will crash and burn more than you succeed. Over time, your wins will be greater than your losses; that is how a leader grows. Anyone can lead.x I have seen children as young as six take on the role of leader. My 8-year old granddaughter Naomi decided to run for class president because she wants to have an impact or influence on her classmates, yet she has never been in charge. She is learning both the art and science of leading in her relationships with her brother and classmates and by observing her parents, teachers, and of course me. www.wscpa.org

LEADERSHIP

Learn more Leadership is a bond of trust between you and the people you lead. It is they who give you feedback on your ability to lead. Many reluctant leaders are not paying attention when those around them say, “I want to follow you because I believe in you. I trust you.”

Third Key: Seize the Opportunity to Lead

The third key to having the courage to say, “I am your leader” is to change your perception. The leadership door is available to us, though you may not see it. This door opens for us several times a day, but is disguised as hard work or greater responsibility. You likely became the leader when: • Your boss resigned or took a leave of absence. • You earned a promotion for excellent work. • You shared some great ideas and the boss said, “Make it happen.” • A committee lost its way and you said, “Let’s go in this direction.” • At a meeting nothing was getting accomplished so you stood up and said, “I have an idea.” In other words, you were in the right place at the right time! You became a leader simply because you saw a void and filled it by walking through the door of opportunity. Most reluctant leaders are technically trained people like you who have a track record of accomplishment. Those who work with you saw something special in you and either opened the door for you or shoved you through it. This leadership door is really an opportunity to have an impact, to change things for the better, and to influence others in positive ways. The most amazing aspect of leading is this: once you have walked through that door and discovered what you can do, you will always be a leader. You will define yourself differently. You can no longer hide from www.wscpa.org

the opportunity to serve others because when you see the door opening, a part of you wants to walk through it. You will carry the leadership attitude within you for the rest of your life.

Women’s Leadership Summit presented by

Please Commit

We can have a profession that enjoys an abundance of leaders at all levels. Together and individually we can get there by: 1) Being okay with our reluctance to wear the leader label. 2) Adopting the leader attitude “I can and will have an impact and make a difference with others.” 3) Walking through the opportunity door with courage and conviction. 4) Sparking the desire to have influence and impact within yourself and others. 5) Committing to taking at least three leadership courses every year. You don’t need power to change the world.You don’t need to sell your soul to make society and our profession better. All you need to do is believe,“If it is to be, it is up to me.” Ron Rael, CPA, CGMA, is a noted consultant, author, and blogger on leadership issues. He is the CEO of the High Road Institute of Sammamish, Washington. Ron wrote the AICPA’s courses on leadership and advanced controllership and regularly serves WSCPA as discussion leader for our essential skills and our CFO and controller courses and webcasts. Ron’s latest publication The Reluctant Leader: Own Your Responsibility with Courage is now available at Amazon.com. Catch Ron Rael’s next CPE course,Toolkit of Best Practices for Today’s Controller and Financial Manager, on May 20 in Bellevue.

May 21, 2015

Meydenbauer Center, Bellevue “The Women’s Leadership Summit is an entire day where we can concentrate on self-improvement and empowerment. Very contagious!” - 2014 attendee Women at all career stages will walk away from the Women’s Leadership Summit inspired and equipped with practical tools. Spend time connecting with other current or future leaders and listening to seminars on the topics that matter to professional women like you. Hear from some of the nation’s top speakers, as well as phenomenal local leaders. Though designed for women, the sessions and speakers will motivate all.

CPE

8 non-technical credits

DIVERSITY & INCLUSION

Diversity & Inclusion: Resources for Your Organization By Ed Ramos, CPA

WashingtonCPA Spring 2015

wo years ago I was nominated to serve a three year term on the AICPA’s National Commission for Diversity and Inclusion (NCDI). The NCDI was formed to serve as a champion and advisor within the accounting profession proposing strategies to recruit, retain, and advance underrepresented minorities in the profession. As I look back at my time serving on the NCDI, I am amazed by the progress made in such a short period of time. However, looking forward, there is still a lot of work to be done. I was born and raised in Tacoma. My family moved from Puerto Rico to Washington. Growing up, I always felt comforted by the immediate surroundings of my family. During my journey as a minority student in accounting, I found myself lost without direction in the profession. I did not have anyone to push my potential to the next level, nor did I realize the value of networking and how it could help steer my career. When I became a CPA, I thought I would sit at a desk and not have to talk to a lot of people. I was surprised by the amount of communication and interaction that I was to encounter on the job. It was not until I found the Association of Latino Professionals in Finance and Accounting (ALPFA) that my eyes opened to the full potential of my career. ALPFA helped me find something in the profession that I was familiar with – comfort and family. This journey has led me to where I am today. I became a shareholder in 2009 at the age of 33 at DP&C (formerly Dwyer Pemberton & Coulson) and I was happy with my personal success. But that was not enough. I knew it was unique for a minority to become a shareholder in a CPA firm. When I received the call to join the AICPA’s NCDI, I did not hesitate. As the population and the buying power around us continues to grow more

Where are the minority students? Are we hiring diverse candidates just to increase the numbers? How can I get more minorities to interview at my firm? Why do minorities tend to leave my organization after a certain amount of years? diverse, our profession must remain relevant and continue tapping into diverse markets. Many accounting firms/organizations struggle with understanding exactly what they should do to improve the recruiting and retention of diverse talent in their organizations.We all ask the same questions: Where are the minority students? Are we hiring diverse candidates just to increase the numbers? How can I get more minorities to interview at my firm? Why do minorities tend to leave my organization after a certain amount of years? While this article is not intended to answer all of these questions, the

AICPA’s Diversity & Inclusion team, in collaboration with the NCDI, has developed valuable resources, including Inclusion Solutions, the Accounting Inclusion Maturity Model and the Recruitment and Retention Toolkit, which were launched at the AICPA’s Fall Meeting of Council in 2014. The AICPA has also developed a pipeline initiative to help increase the number of minorities entering the profession.

Pipeline Initiatives

The Pipeline Project Vision is to develop a profession-wide and profession-funded effort that increases the www.wscpa.org

DIVERSITY & INCLUSION

number of underrepresented minorities entering the accounting profession. Major initiatives include: • • •

Increase communication and awareness in diverse communities Increase support of schoolbased programs for students pursing accounting Increase the number of minorities who sit and pass the CPA exam

Inclusion Maturity Model visit aicpa.org/ maturitymodel.

Recruitment and Retention Toolkit

The Recruitment and Retention Toolkit offers practical guidance on attracting, recruiting and retaining diverse talent and provides a useful framework for developing an action plan. •

Inclusion Solutions

Inclusion Solutions is a monthly e-newsletter that delivers timely stories about diversity and inclusion best practices, trends, recruiting, retention, policy and regulatory information and AICPArelated diversity and inclusion news. Visit aicpa.org/inclusion for more information.

Accounting Inclusion Maturity Model

The Accounting Inclusion Maturity Model helps you assess your organization’s current diversity and inclusion environment and will eventually allow you to compare yourself to other firms of similar size. •

•

Firms complete the assessment, composed of approximately 100 questions which evaluate four key areas of business, including Workforce, Workplace, Marketplace and Community and Supplier Relations. The assessment is designed to be completed by multiple teams across the organization including human resources, marketing, and finance.

After completing the assessment, firms will have access to summary results indicating their diversity maturity. The four stages of maturity include Foundational, Englightened, Integrated and Optimized. Soon organizations will have the ability to compare themselves to others of similar size. To sign up to take the Accounting www.wscpa.org

•

• •

The toolkit is a resource to help leaders understand how attracting, recruiting and retaining a diverse workforce can help them better achieve their companies’ overall talent recruitment and retention goals. The toolkit provides an outline of the process necessary to make diversity and inclusion initiatives an ongoing part of a company’s culture. An action plan provides examples to assist in implementing changes. To learn more about the Recruitment and Retention Toolkit visit aicpa.org/diversity

In my experience, growing up in a close family environment where not much was shared outside of the family, I believe my communication with others was my largest challenge. Does having this challenge because of a different cultural perspective mean that I cannot become a shareholder or a strong leader? I may have a different experience than the coworker next to me, but if you provide me with the tools and the opportunity to succeed, I will succeed. These resources will help you understand how each employee in your organization is valuable in a different way, through their own life experiences, challenges, ethnicity, and/or religion. Only a few years ago, I used to say that I elevated my career because I found mentors that looked like me, talked like me, and shared similar experiences. I have progressed to learn that I became successful because I became comfortable in my profession, which happened through

my association with ALPFA. However, that could have come from anyone willing to be my mentor and willing to understand my culture and our differences. Diversity is not about hiring or retaining employees for the sake of keeping the status quo. Diversity is about embracing and understanding everyone’s differences where ideas, backgrounds, and perspectives are brought together to create business value. It is discussed often in the accounting profession and is an important aspect of the work at the AICPA. Organizations committed to diversity and inclusion and utilizing the resources described above are taking the first steps to maintaining this success in the future. Ed Ramos, CPA, is Shareholder of DP&C in Tacoma. A member of the WSCPA since 2001, he serves on the AICPA’s National Commission for Diversity and Inclusion. You can contact him at eramos@dpcpa.com.

Learn more Accounting Inclusion Maturity Model aicpa.org/maturitymodel Recruitment and Retention Toolkit aicpa.org/diversity Inclusion Solutions e-newsletter aicpa.org/inclusion National Commission for Diversity and Inclusion (NCDI) aicpa.org (search “NCDI”)

WashingtonCPA Spring 2015

EVENTS

Networking Events

WashingtonCPA Spring 2015

www.wscpa.org

Golf Tournament Thursday, June 4 THE GOLF CLUB AT

Redmond Ridge Only $135/person, includes golf, lunch, dinner, drinks, cart and prizes Sponsorships are available.

Tournament Sponsor

Lunch Sponsor

Hole Sponsor

Spokane Area WSCPA/RMA Golf Outing Thursday, May 28 Circling Raven Golf Club Register at www.wscpa.org/spokanegolf

Worley, ID

www.wscpa.org

WashingtonCPA Spring 2015

MEMBER BENEFITS

Take Stock in the Value of Your Membership

he WSCPA is dedicated to continuously adding value to your membership and providing the resources you need to fulfill your professional responsibilities. Are you aware of the member benefits your membership offers you?

“T h i s i s t he best cont inu i ng p ro fe s s ional education that I have e ve r taken.” Rece nt WSCPA CPE prog ra m a t ten d ee

Networking with peers. Attend fun networking events, join a committee, or participate in a chapter meeting and gain the opportunity to meet and talk with other CPAs in your area who have similar interests. Visit www.wscpa.org/ networking or turn to page 30. Online community. Become a member of the WSCPA LinkedIn group and make connections with members across the state. Visit www.wscpa.org/linkedin to join the group.

“T h e WSCPA and the advocac y partn ers p rotect t he profess i on i n a way n o o n e else can.”

Cutting edge and convenient CPE. Choose from thousands of hours of live professional education annually, as well as a wide array of self-study and webcast options, in-house training and Value CPE discount options. To search for CPE to meet your needs, visit www.wscpa.org/ cpe/catalog.

Peter M i ller, CPA

WSCPA Job Board. Whether you are a CPA looking for a new position or an employer with a position to fill, the Job Board is a helpful resource. Visit www. wscpa.org/job-board for details. Timely information. Receive timely information and keep up to date on changes in the profession with information at www.wscpa.org, in The WashingtonCPA magazine and The Short Form e-Newsletter. “My WS CPA membership has e nhance d m y p e rsonal and professi onal netwo rks by giving me a wa y to conne c t wi th o thers in t he profe ssi on.” Dan i E sp i n d a , CPA

WashingtonCPA Spring 2015

Find a CPA Service. Enroll in the online referral service and use this cost effective tool to market your firm’s services and increase your client base. Visit www.wscpa.org (click “Find a CPA”) for more information.

Community outreach. Engage in avenues to give back to your community and share your expertise. For Financial Education visit www.wscpa.org/fined and for Advocacy visit www.wscpa.org/advocacy. Insurance services. From group health insurance to professional liability and from long term care to disability insurance, the WSCPA has partnered with insurance providers and brokers to help you get the coverage you need. For more information, visit www.wscpa.org/benefits (Scroll to “Insurance Services”). Discounts. Receive access to discounts on various services and products needed for everyday business like Paychex, CCH, UPS shipping, and more. View the discounts at www.wscpa.org/benefits. CPA exam review discounts. Student members receive substantial discounts on both live and self study exam review courses. Choose from Becker, ExamMatrix, Kaplan, Lambers, Roger, Surgent Kolar and Yaeger. For details visit www. wscpa.org/benefits (scroll down to “Student Discounts”). Advocacy. You surely don’t have the time to attend Washington State Board of Accountancy meetings or monitor legislation as it is proposed in Olympia. The WSCPA takes care of this for you and works with legislators and regulators to make sure the concerns of the profession are heard. Learn more at www.wscpa. org/advocacy. Remember to renew your WSCPA membership by June 1, 2015 to continue enjoying your benefits. (See page 13 for information on how to renew online). If you have questions about your WSCPA member benefits, please contact Jennifer Ayoub, Member Services Coordinator, at (425) 586-1142, or (800) 272-8273, Ext. 1142 or jayoub@wscpa.org.

www.wscpa.org

WashingtonCPA Spring 2015

www.wscpa.org/cpexpress

WashingtonCPA Spring 2015

www.wscpa.org

MAP SURVEY

Dynamic Firm Benchmarking: The New MAP Survey Platform in Action By Stephen Nelson, CPA

ave you ever performed an in-depth comparison of your firm’s standing against other firms of the same size? The 2014 PCPS/TSCPA National Management of an Accounting Practice Survey provides some new and valuable ways to assess where your firm stands and plot your future course. If you participated in the survey this year but haven’t really delved into the results, which became available in November, you definitely want to check them out. Thanks to a new online platform, it’s much easier to take a peek at how firms like yours operate. And even if you didn’t participate, the survey offers some valuable information that will help your firm plan. Take the case of a single owner firm like mine. We have a boutique corporate tax practice. In addition to myself, our permanent staff includes one CPA and one CPA candidate, but we add an administrative person and per diem help in busy season.When I’m planning for the future, I often wonder what a top performance single-owner firm looks like, but it’s tough to find more than anecdotal information.

Questions Answered

While the MAP survey data has always been a great resource for practitioners, a new platform this year makes it much easier to microslice the results, filtering them various ways and focusing on your peer group. In addition, the survey offers access to objective data on how the top performers are running their firms, serving clients, spending money or handling staffing—in your own size segment and others. With the new MAP survey website, you can answer your most important questions with a couple of clicks. You can see if some firms are doing better in critical areas such as realization or leverage. If you’re thinking about growing your www.wscpa.org

firm, you can check out the results and approaches of practices larger than your own. In this year’s survey, for example, I learned that while the 811 single-owner firms included in the MAP survey generate median revenue of $330,000 and median profit of $143,000, the top 60 single-owner firms generate median revenue of $1.5 million and median profits of just under $500,000. It’s true that only one in more than a dozen single-owner firms hit the big numbers, but having a sense of what’s possible makes a huge difference when you’re thinking about how big you can be.

Finding the Roadmap for Success

It’s great to know what’s possible for your firm, but charting the route that will take you there is even better. Say, for example, that you want to double the size of your firm. The next and obvious question is “how,” and the new MAP survey offers some answers. You can scroll up through size segments, seeing what services a firm might add as it expands. You can follow how a firm’s technology use and choices alter as it grows, whether billing rates change and at what points a firm might add staff, say, or improve realization.You can track the necessary steps to move to the next level. In short, the new MAP survey helps PCPS members map a clear route to wherever they want to go.

Added Depth

One final high-level point: The MAP survey has provided wonderful richness and granularity for years, and it goes even further this year. For example, while in the past we’ve gotten average values broken down into categories based on size and region, now we get that same data but with 25th percentile, 50th percentile (median) and 75th percentile values reported. Detailed reporting should

make your benchmarking opportunities that much more valuable. And another example: While in the past, the MAP results have included useful tabulations of the ways firms use technology, this year’s survey ramps things up. You can get very detailed tabulations of highly filtered data about, for example, which tax software program and research library products firms like yours use, whether you really need a blog or a portal at your size, and more. In short, the results blew me away. They will help me recognize changes I need to make and how to differentiate myself from the rest of the pack. I’ve been looking for data like this for a decade. Stephen L. Nelson, CPA, is a sole practitioner in Redmond, and the author of QuickBooks for Dummies and Quicken for Dummies, among other books. He can be reached at steve@stephenlnelson.com. Reprinted with permission of AICPA.

Learn more Download the latest MAP Survey results www.wscpa.org/more/ map-survey-results

WashingtonCPA Spring 2015

GOVERNMENT

The “Four Ts” for Managing Local Government Performance

etropolitan areas continue to grow and increasingly affect the global economy. Are their local governments up for the challenges ahead?

While the majority of business leaders feel their local governments understand their needs for zoning, waste, technology and infrastructure, 70 percent do not think their efforts in service transformation, online processes or improved transparency add any value to their business. They believe government fails to recognize the investment opportunities that will support them. Finance management can change the status quo, creating new opportunities between businesses and governments. Success will require careful planning, execution, monitoring, and analysis of results. Yet despite the obvious need, finance currently plays a limited strategic role in many local governments.

The “Four Ts” necessary to change the dynamic.

New research by the AICPA and CIMA shows effective performance management and strong financial leadership will reverse the stagnation of local governments, and create sustainable public service delivery. There are four key areas where government leaders need to focus. Dubbed the “Four Ts,” they are: transformation, technology, transparency, and talent. The good news is that 70 percent of

WashingtonCPA Spring 2015

In today’s global marketplace, closer alignments between businesses and local governments have never been more critical. But the often uneasy alliance between the two continues to be hampered by what businesses feel they need versus what governments are prepared to provide.

local governments are already undergoing or have recently gone through organizational transformation of their public services. Another 20 percent said they plan to do so within the next year and a half. They know the need for change exists. But does transformation add immediate value? So far, a third of government leaders report difficulty quantifying the financial benefits of such change. Adoption of technology is central to improving these transformation efforts. Technology quickly improves the communications, efficiencies and decisionmaking of local governments. Still, 40 percent struggle to manage data and share insights, and only 57 percent of them say they have the proper budget to execute their technology strategy, making it underutilized as an agent of change. Today, society demands much greater openness. As a result, local governments are making their operations more transparent. It’s a win-win for all involved, as it enhances both business and citizen trust while improving internal collaboration and organizational effectiveness. Over three-quarters of local government leaders believe transparency improves the

quality of public service delivery. Unfortunately, an ongoing challenge for local governments is the recruitment and retention of top talent. While most believe they have a well-defined talent management strategy in place, almost half struggle to compete with their private sector rivals. The Four Ts can help finance leaders manage the forward accounting capabilities so necessary in today’s global marketplace. Working together, the four key areas help implement future-focused, evidence-based and agile decision-making, creating stronger alliances between businesses and their local governments. Learn more by viewing the infographic at cgma.org/FourTs. CGMA designation holders can download the full report atxwww.cgma.org/Resources/Reports/ Pages/transformation-and-transparency. aspx. Not a CGMA designation holder? Find out how to become one at CGMA.org. Reprinted with permission of CGMA.

www.wscpa.org

WashingtonCPA Spring 2015

CPE Digest A&A Andy, CPA

Oh sweet A&A! How I love you during the month of May!

Baffled by revenue recognition? Time for a GAAP review? Gearing up to audit defined contribution plans? Need to brush up on comp and review standards? Turn to the WSCPA during May for CPE courses to bring you up to speed: A&A courses galore and moreâ&#x20AC;&#x201D;including conferences on Health Care, International Tax and Womenâ&#x20AC;&#x2122;s Leadership!

WashingtonCPA Spring 2015

www.wscpa.org

EDUCATION AND EVENTS Fees

Date

CPE Credits

Course

Code

EVENTS #BY LOCATION WSCPA education and events scheduled for April - May 2015 are listed below, chronologically by location. If you are looking for a program in another location, it may be scheduled for later in the year. Using the online CPE & Event Catalog at www.wscpa.org/cpe/ catalog, you can search by location. Type

LEARN MORE To view complete course details, please visit the CPE & Event Catalog at www.wscpa.org/cpe/catalog.

For more details, search by code at www.wscpa.org/cpe

WSCPA NonAICPA Member Member Member Discount Fee Fee

NEW CPE events added throughout year to: www.wscpa.org/cpe/catalog

Facility

A&A CS EB PFP

SUBJECTS The main subject area is listed for each program.

Ethics GNP MG PD SK TAX

NEED HELP finding a seminar or webcast? Call (800) 272-8273 or (425) 644-4800.

TEC

Accounting and Auditing Consulting Services Employee Benefits Estate/Financial Planning Ethics Government / NFP Management Personal Development Specialized Knowledge Taxation Technology

Fees

Date

CPE Credits

Course

WSCPA NonAICPA Code Member Member Member For more details, Discount Fee Fee search by code at www.wscpa.org/cpe

Type

Subject

Facility

Subject

Bellevue 4/21

Excel-Based Dashboards, 8am - 4pm

15EBDAP

295

370

WSCPA

TEC

4/22

Cloud Computing, 8am - 4pm

15CLCAP

295

370

WSCPA

TEC

4/23

Annual Financial Management Spotlight: 4 Current Topics, 8am - 4pm

15AFMSAP

295

370

WSCPA

4/24

Chief Financial Officer - Executive Level Skills for Financial Managers, 15CFOAP 8am - 4pm

295

370

WSCPA

4/28

Key Ratio Analysis, 8am - 4pm

15KEYAP

295

370

WSCPA

Webcast also available

15WWKEY

265

340

Webcast

Cash and Credit Management, 8am - 4pm

15CCMAP

295

370

WSCPA

Webcast also available

15WBCCM

265

340

Webcast

WSCPA

GNP

4/29

Not For Profit Committee Meeting (Registration for Committee 15CMNFPAP Members Only), 12pm - 2pm

4/30

Advanced Business Law for CPAs, 8am - 4pm

15ABLTAP

295

370

-30

WSCPA

Webcast also available

15WWABLTAP

265

340

-30

Webcast

CFO Series - Financing a Privately Owned Company, 8am - 4pm

15CFOSPMY

295

370

WSCPA

Webcast also available

15WBWCFOSP

265

340

Webcast

CPA Succession Planning, 8am - 4pm

15CSPMY11

300

375

WSCPA

TAX

International Tax Conference, 8:05am - 4:15pm

15INTC

295

370

Meydenbauer Center

TAX

5/8

5/11

5/12

Fringe Benefits 2015, 8am - 4pm

15FBMY

300

375

WSCPA

TAX

5/14

Real-World Fraud: War Stories from the Front Lines, 8am - 4pm

15RWFRAP

310

385

WSCPA

Webcast also available

15WWRWFRAP

280

355

Webcast

Current Developments and Best Practices for Today's CFOs and Controllers, 8am - 4pm

15TCFOMY

310

385

WSCPA

Webcast

WSCPA

A&A

WSCPA

TEC

WSCPA

A&A

WSCPA

TEC



5/15

Webcast also available

15WWTCFOMY

280

355

5/18

Auditing Employee Benefit Plans, 8am - 4pm

15EBPEMY18

295

370

5/18

Excel Boot Camp: Two Days of Intensive Excel Training, 8am - 4pm

15EBCAP

500

615

5/19

FASB Review: Common GAAP Issues Impacting All CPAs, 8am - 4pm

15FRUMY19

295

370

5/20

The Mobile Office, 8am - 4pm

15MOBAP

295

370

5/20

Toolkit of Best Practices for Today's Controller and Financial Manager, 15TKBPMY20 8am - 4pm

295

370

-30

WSCPA

5/21

Revenue Recognition: Mastering the New FASB Requirements, 8am 15INRRMY21 - 4pm

295

370

-30

WSCPA

A&A

5/21

Women's Leadership Summit presented by Deloitte, KPMG and Moss 15WLS2 Adams, 8:30am - 4:45pm

315

395

Meydenbauer Center

5/26

Auditing Defined Contribution Plans, 8am - 4pm

295

370

WSCPA

A&A

 

ç New |  Non-tech credits |

www.wscpa.org

15AEMPMY26

-30 -30

-30

Networking event

WashingtonCPA Spring 2015

EDUCATION AND EVENTS

Fees

Date

CPE Credits

# ç

Course

Code

For more details, search by code at www.wscpa.org/cpe

Type

WSCPA NonAICPA Member Member Member Discount Fee Fee

5/27

Internal Control Best Practices for Small and Medium-Sized Entitles, 15ICSMMY27 8am - 4pm

295

370

5/27

Not For Profit Committee Meeting (Registration for Committee 15CMNFPMY Members Only), 12pm - 2pm

5/27

The Business Financial Health Checkup: A Process to Identify Mis- 15BFHCMY statements and Profitability Roadblocks Using Analytical Procedures by Walter Haig, 8am - 4pm

5/28

Internal Controls and Risk Assessment: Key Factors in a Successful 15ICRAMY28 Audit, 8am - 4pm

5/29

Identifying Fraudulent Financial Transactions, 8am - 4pm

5/29

6/24

-30

Facility

Subject

WSCPA

A&A

WSCPA

GNP

315

390

WSCPA

A&A

Compilation and Review Standards: the Annual Update and Review by 15CRURMY2 Walter Haig, 8am - 4pm

315

390

WSCPA

A&A

Webcast also available

285

360

Webcast

A&A

295

370

-30

WSCPA

A&A

295

370

-30

WSCPA

A&A

Preparing Financial Statements for Small & Med Sized Businesses: An 15ASURMY1 Update & Review of GAAP & Tax, Cash and Special Purpose Frameworks by Walt Haig, 8am - 4pm

315

390

WSCPA

A&A

Webcast also available

285

360

Webcast

A&A

Not For Profit Committee Meeting (Registration for Committee 16CMNFPJN Members Only), 12pm - 2pm

WSCPA

GNP

Governmental Accounting & Auditing Live Video Conference (Everett), 15GAACE 8am - 4pm

345

420

Comcast Arena Events Center

GNP

Networking Event at R-Jay's Scoreboard, 5:00pm - 7:00pm

15CHSKAP22

R-Jays Scoreboard

15WWCRURMY

15FEFFTMY

15WWASURMY

Everett 4/20

Y 

Federal Way 4/22

4/22

Excel Tips and Tricks, 7:30am - 9:30am

15CMSSIAP

Poodle Dog Restaurant

TEC

5/20

Washington State Tax Update, 7:30am - 9:30am

15CMSSIMY

Poodle Dog Restaurant

TAX

 l

Fife

Kent 4/23

1031 Exchange Solutions for CPAs, 8:am - 9am

15CHSKAP23

Golden Steer Restaurant

TAX

5/21

The Top Three Issues for S Corporations: Basis Compensation and 15CHSKMY21 Losses, 8:am - 9am

Golden Steer Restaurant

TAX

6/18

Washington State Tax Update, 7:30am - 9:30am

16CHSKJN18

Golden Steer Restaurant

TAX

7/16

IRS Audits, 8am - 9am

16CHSKJL16

Golden Steer Restaurant

TAX

Washington State Tax Update, 7am - 9am

15CHSVMY21

Heathman Hotel

TAX

5/6

Board of Accountancy & WSCPA Update, 12pm - 2pm

15CHOLMY06

Indian Summer Golf

6/3

Divorce Valuation, Tips, Traps, and Other Issues, 12pm - 2pm

16CHOLJN03

Indian Summer Golf



Health Care Conference presented by KPMG, 8:00am - 4:40pm

15HCC

280

355

Bell Harbor International Conf Center

4/20

Y 

Governmental Accounting & Auditing Live Video Conference (Spokane), 8am - 4pm

15GAACS

345

420

NE WA Educ Svc Dist 101

GNP

5/13

 l

Leadership, 12:00 pm - 2:00 pm

15CHSPMY13

The Spokane Club

4/20

Y 

Governmental Accounting & Auditing Conference (Tacoma), 8am - 15GAACT 4pm

395

470

Greater Tacoma Convention & Trade Center

GNP

5/8

 l

CPA/Student Trivia Night at The Swiss Pub, 5:00PM - 7:00PM

The Swiss Restaurant and Pub

Kirkland ç

5/21

Olympia

Seattle 5/18 Spokane

Tacoma

ç New |  Non-tech credits |

15CHSKMY08

WashingtonCPA Spring 2015

Networking event

www.wscpa.org

EDUCATION AND EVENTS Fees

Date

Course

CPE Credits

Code

For more details, search by code at www.wscpa.org/cpe

Type

WSCPA NonAICPA Member Member Member Discount Fee Fee

Facility

Subject

Your Desk - Webcasts and Webinars ç

4/20

Governmental Accounting & Auditing Live Video Conference WEBCAST , 8am - 4pm

15WBGAAC

345

420

Webcast

GNP

4/20

Live Video Interview with Ponzi Expert Kathy Bazoian Phelps WEBINAR, 11am - 1pm

15WNCAP20A

Webinar

A&A

4/21

Audit Workpapers: Documenting and Reviewing Fieldwork WEB- 15WBBAP21A CAST, 6am - 2pm

249

345

Webcast

A&A

4/21

Interpreting The Yellow Book WEBCAST, 8:30am - 4pm

275

375

Webcast

GNP

4/21

Key Tax Issues for Industry and the Affordable Care Act WEBINAR, 15WNCAP21A 9am - 11am

Webinar

TAX

4/22

New FASB Developments for Business & Industry WEBCAST, 10am 15WBBAP22A - 2pm

149

199

Webcast

A&A

4/22

The ZZZZ Best Story: Ex-Con, Z Best CFO, Shares Techniques On 15WNCAP22A How To Detect And Prevent Fraud WEBINAR, 8am - 10am

Webinar

A&A

4/22

Washington CPA Ethics and New Developments by Mark Hugh (A 15WBAAP22A WA Requirement) WEBCAST, 8:00AM - 12:00PM

164

194

Webcast

Ethics

4/22

Washington Sales Tax and New Developments by Mark Hugh WEB- 15WBAAP22B CAST, 12pm - 4pm

129

159

Webcast

TAX

4/23

4.5

Explore Forensic Techniques to Recognize Fraud WEBCAST, 10am - 15WBBAP23A 2:30pm

149

199

Webcast

A&A

4/23

Partnerships and LLCs:Tax Issues in the Formation of the Entity WEBI- 15WNCAP23A NAR, 8am - 10am

Webinar

TAX

4/23

Practical Guide to Accounting Fraud WEBCAST, 8:30am - 12pm

15WBCAP23A

138

188

Webcast

A&A

4/24

401(k)s and Retirement Plans For Small Businesses WEBCAST, 10am - 12pm

15WBAAP24A

109

Webcast

PFP

4/24

Create Reports that Matter: Turn Information into Action WEBCAST, 15WBCAP24A 8:30am - 4pm

275

375

Webcast

4/24

Federal Awards: Changes under the Revised Uniform Grant Guidance 15WBAAP24B WEBCAST, 8am - 10am

109

Webcast

GNP

4/24

Financial Reporting Framework for SMEs WEBCAST, 8:30am - 12pm

15WBCAP24B

138

188

Webcast

A&A

4/24

Open Innovation for Accountants WEBINAR, 9am - 11am

15WNCAP24A

Webinar

TEC

4/27

Cost Principles for State and Local Governments and Nonprofit 15WBCAP27A Organizations WEBCAST, 8:30am - 4pm

275

375

Webcast

GNP

4/27

Fraud and the Affordable Care Act WEBINAR, 7am - 9am

15WNCAP27A

Webinar

A&A

4/27

GAAP Update WEBCAST, 8:30am - 4:30pm

15WBCAP27B

275

375

Webcast

A&A

4/28

Annual Compilation Update – A Seminar Designed for Smaller Firms 15WBAAP28A 2014 WEBCAST, 9am - 1pm

129

159

Webcast

A&A

4/28

Fraud in Revenue and Cash Receipts Cycles WEBCAST, 6am - 10am

15WBBAP28A

149

199

Webcast

A&A

4/28

Mobile Financial Apps for Accountants WEBINAR, 9am - 11am

15WNCAP28A

Webinar

TEC

4/29

Compilations and Reviews: Risks, Procedures and Fraud WEBCAST, 15WBCAP29A 8:30am - 4:30pm

275

375

Webcast

A&A

4/29

Implementing the Right Business Technology WEBCAST, 8am - 4pm

15WBAAP29A

195

245

Webcast

TEC

4/29

Passive Activities - A Primer WEBINAR, 11am - 1pm

15WNCAP29A

Webinar

TAX

4/30

AICPA Private Company Financial Reporting Standards WEBINAR, 15WNCAP30A 8am - 10am

Webinar

A&A

Y 

15WBCAP21A

4/30

Marketing the CPA in Public Practice WEBCAST, 8:30am - 4pm

275

375

Webcast

A&A

5/1

Business Use of a Home and Vacation Home Rentals Rules - What You 15WNCMY01A Need to Know WEBINAR, 7am - 9am

Webinar

TAX

5/1

Partnerships and S Corporations: New Tax Rules You Need to Know 15WNCMY01B WEBINAR, 10am - 12pm

Webinar

TAX

5/2

Fraud Brainstorming and Interviewing Techniques for Auditors and 15WBSMY02A Accountants SATURDAY WEBCAST, 11am - 1pm

109

Webcast

A&A

5/4

2015 Technology Update WEBINAR, 8am - 10am

15WNCMY04A

Webinar

TEC

5/4

Cloud Accounting Review Series - QuickBooks Online WEBINAR, 15WNCMY04B 11am - 1pm

Webinar

TEC

ç New |  Non-tech credits |

www.wscpa.org

15WBCAP30A

Networking event

WashingtonCPA Spring 2015

Thereâ&#x20AC;&#x2122;s a better way to get attention at work Attend WSCPA Conferences and share what you have learned

WashingtonCPA Spring 2015

www.wscpa.org

2015 Conferences Great topics - phenomenal speakers - opportunities too amazing for you to miss!

April 20-21 Governmental Accounting & Auditing Conference

November 4-5 Pacific Tax Institute

May 11 International Tax Conference

November 13 Accounting & Auditing Conference

May 18 Health Care Conference presented by KPMG

November 16-17 Pacific NW Construction Industry Conference

May 21 Womenâ&#x20AC;&#x2122;s Leadership Summit presented by Deloitte, KPMG and Moss Adams

November 19-20 Not-For-Profit Conference

June 15 Washington State Tax Conference August 13 Farm Tax Conference

December 4 Fraud Conference December 14-15 Information Technology Conference webcast available

September 2-3 Northwest Accounting Educators Conference www.wscpa.org REGISTER NOW

WashingtonCPA www.wscpa.org/conferences | (425) 644-4800

Spring 2015

EDUCATION AND EVENTS

Fees

Date

CPE Credits

Course

Code

For more details, search by code at www.wscpa.org/cpe

Type

WSCPA NonAICPA Member Member Member Discount Fee Fee

Facility

Subject

5/4

Your Clients Medicare Benefits and Solutions to Long Term Care 15WBAMY04A WEBCAST, 9am - 11am

109

Webcast

PFP

5/5

Interview with Ex-Con Legislator W. Carlton Weddington WEBINAR, 15WNCMY05 11am - 1pm

Webinar

A&A

5/5

Mergers & Acquisitions: Tricks, Traps, & Terrors EVENING WEBCAST, 15WBSMY05B 2:00pm - 6:00pm

129

159

Webcast

5/5

Pension Accounting and Financial Reporting: New Standards WEB- 15WBCMY05A CAST, 8:30am - 4pm

275

375

Webcast

GNP

5/5

The Comprehensive Annual Financial Report WEBCAST, 7:30am 8:30am

15WBAMY05A

Webcast

A&A

5/6

Employee Benefit Plan Disclosures WEBCAST, 7am - 8am

15WBAMY06A

Webcast

5/6

Foreign Account Reporting Requirements: Forms 8938 and 3520 15WNCMY06B WEBINAR, 11am - 1pm

Webinar

TAX

5/6

GASB 68 and 71: New Pension Standards WEBCAST, 8:30am - 12pm

140

188

Webcast

GNP

5/6

S Corporations: How to Calculate AAA, Basis and Loans WEBINAR, 15WNCMY06A 8am - 10am

Webinar

TAX

5/7

A Briefing on the Tax and Accounting Impact of "Obamacare" on Busi- 15WBAMY07A ness WEBCAST, 7am - 8am

Webcast

A&A

5/7

Real Estate Tax - What Owners and Investors Need to Know WEBI- 15WNCMY07A NAR, 8am - 10am

Webinar

TAX

5/7

Tax Depreciation Update: Rules and Special Situations WEBINAR, 15WNCMY07B 11am - 1pm

Webinar

TAX

5/8

Key Tax Issues for Business WEBINAR, 10am - 12pm

15WNCMY08B

Webinar

TAX

5/8

Key Tax Issues for Individuals WEBINAR, 7am - 9am

15WNCMY08A

Webinar

TAX

5/8

Lessons From the World of Managerial Accounting WEBCAST, 7am 15WBAMY08A - 8am

Webcast

5/11

Choice of Entity: How to Choose the Best Option for Your Client 15WNCMY11A WEBINAR, 10am - 12pm

Webinar

TAX

5/11

Detecting and Preventing Internal Fraud, Theft and Abuse WEBINAR, 15WNCMY11B 12pm - 2pm

Webinar

A&A

5/11

Finance and Innovation: Reinvent Your Department and Your Company 15WBAMY11A WEBCAST, 9am - 11am

109

Webcast

5/12

Black Swans: Prepare for the Unexpected WEBCAST, 8am - 10am

15WBAMY12A

109

Webcast

5/12

Google is Not Enough For Accountants: The Best Search Tools You 15WNCMY12B Aren't Using WEBINAR, 1pm - 3pm

Webinar

TEC

5/12

IRS Internet Resources for Accountants WEBINAR, 10am - 12pm

Webinar

TEC

5/13

Annual Compilation Update - A Seminar Designed for Smaller Firms 15WBAMY13A 2014 WEBCAST, 11:00am - 3:00pm

129

159

Webcast

A&A

5/13

Social Security and Spousal Benefits WEBINAR, 12pm - 2pm

15WNCMY13B

Webinar

TAX

5/13

Social Security: Public Employee Issues: Social Security Research Techniques WEBINAR, 9am - 11am

15WNCMY13A

Webinar

TAX

5/14

Dealing with the Net Investment Income Tax and Additional Medicare 15WNCMY14A Tax WEBINAR, 7am - 9am

Webinar

TAX

5/14

Raising Financing: Start-ups, Non-Profits and Growing Entities WEBI- 15WNCMY14B NAR, 9am - 11am

Webinar

5/15

Crowd Funding:What Every Financial Manager Must Know WEBINAR, 15WNCMY15B 10am - 12pm

Webinar

5/15

Fraud: 10 BIGGEST Risks for Small and Mid-Sized Entities WEBINAR, 15WNCMY15A 8am - 10am

Webinar

A&A

5/15

QuickBooks Desktop Accounting Software Overview and Update 15WBCMY15B WEBCAST, 8:30am - 4pm

275

375

Webcast

TEC

5/15

U.S. GAAP and IFRS Divergence WEBCAST, 8:30am - 4pm

275

375

Webcast

A&A

5/18

1040 Tax Document Automation Systems Review WEBINAR, 7am - 15WNCMY18A 9am

Webinar

TAX

5/18

Affordable Care for Employers - How to Comply with the New Man- 15WNCMY18B date WEBINAR, 8am - 10am

Webinar

TAX

5/18

Guide to Filing Affordable Care for Individuals WEBINAR, 11am - 1pm 15WNCMY18C

Webinar

TAX

ç New |  Non-tech credits |

15WBCMY06A

15WNCMY12A

15WBCMY15A

WashingtonCPA Spring 2015

Networking event

www.wscpa.org

46 Register at www.wscpa.org/cpe/catalog or page 46

EDUCATION AND EVENTS Fees

Date

CPE Credits

Course

Code

For more details, search by code at www.wscpa.org/cpe

Type

WSCPA NonAICPA Member Member Member Fee Discount Fee

Facility

Subject

5/19

Advanced Excel Workshop WEBCAST, 8:30am - 4pm

15WBCMY19B

140

188

Webcast

TEC

5/19

Live Video Interview with Ex-Con Purchasing Agent Vern Beck WEBINAR, 9am - 11am

15WNCMY19A

Webinar

A&A

5/19

Practical Guide to Accounting Fraud WEBCAST, 8:30am - 12pm

15WBCMY19A

140

188

Webcast

A&A

5/19

Small GAAP: AICPA Private Company Financial Reporting Standards 15WNCMY19B WEBINAR, 11am - 1pm

Webinar

A&A

5/20

Compilations and Reviews: Risks, Procedures and Fraud WEBCAST, 15WBCMY20A 8:30am - 4:30pm

275

375

Webcast

A&A

5/20

S Corporations: Elections and Form 2553 WEBINAR, 7am - 9am

15WNCMY20A

Webinar

TAX

5/20

Why Do We Need Another Basis of Accounting - FRF for SMEs? 15WNCMY20B WEBINAR, 10am - 12pm

Webinar

A&A

5/21

Retirement Plans in the Closely Held Business - A Tax Planning Perspective WEBINAR, 10am - 12pm

15WNCMY21

Webinar

TAX

5/22

Detecting and Preventing T&E Fraud WEBINAR, 7am - 9am

15WNCMY22

Webinar

A&A

5/26

Alternative Minimum Tax: How it Can Impact Your Clients WEBINAR, 15WNCMY26C 11am - 1pm

Webinar

TAX

5/26

Detecting and Preventing Accounts Payable Fraud WEBINAR, 7am - 15WNCMY26A 9am

Webinar

A&A

5/26

Detecting and Preventing Accounts Receivable Fraud WEBINAR, 15WNCMY26B 10am - 12pm

Webinar

A&A

5/27

Interview with Ex-Con Bank CEO Paul Allen WEBINAR, 10am - 12pm

Webinar

A&A

5/28

Financial Accounting for Related Party Transactions WEBINAR, 10am 15WNCMY28B - 12pm

Webinar

A&A

5/28

Live Video Interview with Elder Fraud Expert David Kessler WEBINAR, 8am - 10am

15WNCMY28A

Webinar

A&A

5/28

Live Video Interview with Ex-CPA Ex-CFO Criminal Sam Antar WEBINAR

15WNCMY28C

Webinar

A&A

5/29

Getting Along at Work - Managing Four Generations WEBINAR, 8am 15WNCMY29A - 10am

Webinar

5/29

Profit Improvement: Use Process Analysis to Identify Opportunities 15WNCMY29B WEBINAR, 9am - 11am

Webinar

A&A

5/30

The ZZZZ Best Story: Ex-Con, Z Best CFO, Shares Techniques On 15WNCMY30 How To Detect And Prevent Fraud WEBINAR, 7am - 9am

Webinar

A&A

15WNCMY27

New CPE programs are added regularly to the online catalog: www.wscpa.org/CPE/catalog Questions? Need assistance finding a CPE program? Call (800) 272-8273 (Toll-free in WA) or (425) 644-4800.

ç New |  Non-tech credits |

www.wscpa.org

Networking event

WashingtonCPA Spring 2015

REGISTRATION

Register online with credit card at www.wscpa.org/cpe/catalog or: • Mail form with check to WSCPA, 902 140th Ave NE, Bellevue, WA 98005-3480 • Call (425) 644-4800 or (800) 272-8273 (toll-free in Washington) Questions? E-mail cpe@wscpa.org or call the WSCPA.

Code

Title

Date

City

Fee1

To pay by credit card, please visit www.wscpa.org/cpe/catalog or call (425) 644-4800.

WSCPA CPE policies apply to all programs in the CPE Digest. Review the CPE policies at www.wscpa.org.

WashingtonCPA Spring 2015

www.wscpa.org

CLASSIFIED ADS

Detailed advertising information is available online at www.wscpa.org. Ads are $1 per word with a minimum fee of $50. Active e-mail and web site addresses are included. Classified ads are placed on the website for 60 days when received and in the next magazine when received by the deadline, June 1 for the summer 2015 issue. Positions available ads are no longer available in the magazine.To post a job listing, www.wscpa.org (click Job Board.) Want to list a rental or vacation property? Use the Miscellaneous category. Contact Janet White at (425) 586-1126, (800) 272-8273, Ext. 1126, or memberservices@wscpa.org for more information. All ads must be pre-paid. Find classified ads at www.wscpa. org under More.

OFFICE SPACE Downtown Seattle Office Space for Sub-lease. ClassA office space on 26th and 27th floors ofTwo Union Square (6th & Union Street).Two and three bay window offices. Smaller interior offices and adjacent secretarial stations also available. Staffed reception, conference rooms, and access to copiers/fax/postage meter. Available January 15, 2015. Contact Carol at 206-654-2434 or hill@lasher.com SITUATIONS WANTED Join a Good Team. Excellent opportunity for someone with a small or home-based tax practice to merge with an established CPA firm.We may need to replace one of our two partners after April 15th. This can give the right person(s) an entrance into a quality oriented tax firm in Spokane, WA. Contact Anson Avery, CPA anson@aaverycpa.com, (509) 310-8510. MERGERS & SALES Transition,retire or join offices.Looking to purchase attest and/or tax practice with $100,000 - 300,000 annual revenue. Lower Queen Anne location, office available. Experienced in transitioning firms/owners and negotiating details. Confidential. Contact Martha Lindley, martha@lindleyandco.com,(206)332-0386,http://www. lindleyandco.com Considering SellingYour Practice? Consider all your options.We do the work. Confidential.We have buyers actively seeking practices. Call Mark Hause at (877) 3457722 or visit our website at www.accountingpracticesales. comAccounting Practice Sales.We make dreams happen! IBA Sells Privately Held Companies. Do you represent a client who is ready to retire or has taken a company as far as they want to or can? IBA is the Pacific Northwest’s oldest business brokerage (M&A) firm.We are professional negotiators with over 4000 completed transactions. Please contact us if we can be of assistance at (800) 218-4422 or www.ibainc.com

VOLUNTEER OPPORTUNITIES The following new organizations need a CPA to serve on the board of directors and/or provide other guidance on financial matters. Learn more at www.wscpa.org (click volunteer opportunities at the bottom of the page). Bulgarian Cultural and Heritage Center of Seattle Eastlake Community Council

PRACTICES FOR SALE Contact Mark Hause at Accounting Practice Sales by e-mail at MARKHAUSE@CONTACTAPS.COM or call (877) 345-7722 for more information on the following practices: (WA 1089) Bellingham CPA Practice For Sale: This CPA firm is almost 100% a tax practice with writeup only consisting of approx. 6% of gross receipts. The practice is run very efficiently and has a net cash flow percentage that is excellent. The year over year revenues are solid with this stable group of tax clients providing steady income. The size and profitability of this practice make it attractive to any number of buyers looking to grow a firm with immediate possession possible. (WA 1085) San Juan Islands CPATax Practice For Sale: This practice with long term roots in the community and an eye popping net cash flow is for sale.The firm is a tax practice that renders only minimal write-up services required by its clients. The practice has a good balance with a busy season that is not overwhelming and allows for recreation and ample time off outside of tax season. The practice is advanced in the use of technology that allows for a work smarter not harder approach with a cloud based paperless office environment.The ideal buyer will be one who enjoys the island life and establishes a significant presence in the community. To assist in the acquisition of the practice, the Seller is willing to provide financing to qualified buyers. (WA 1086) University Place EATax Practice: This practice is for sale due to health reasons. The Seller will be leaving behind approx. 173 loyal clients. The practice is mostly individual tax clients with approx. 90% of the returns being 1040’s. These clients produce an excellent annual cash flow that approximates 73% of gross revenues. With good average fees, the practice is a great addition for a firm looking for that extra utilization of their staff or for a practitioner looking to make a quick profitable addition to their practice. With a motivated Seller, the timing could not be better.

SOLD

(WA 1083) Olympia/LaceyArea CPA Practice For Sale: This CPA practice is a tax and financial planning practice.The Seller is selling the tax practice and retaining the financial planning practice. The revenue dollars are provided principally by a good tax practice that is approx. 80% of total revenue. The tax practice has both individual and business returns with individual returns being approx. 60% of the tax work. The hidden part of this practice is an excellent staff that could accommodate a buyer looking to beef up their staff. The Buyer will need to be interested only in the tax and accounting and available for referrals from the financial planning side of the business.

SOLD

(WA1078) Port Orchard EA &Write-Up Practice For Sale: This EA practice is for sale. The practice is a tax and write-up practice with equal amounts of both professional services and a small amount of consulting. The firm has grown significantly in the recent year with a 35% increase in fees. The billing philosophy of the owner is a fee structure based on a by-the-job basis and not hourly. The result is an excellent realization rate on services performed that makes for a well above average profit percentage. This practice is a perfect opportunity

for any accountant starting out on their own or a firm looking to add a solid base of clients. (WA1073) Island County EATax Practice for Sale: This well-established Enrolled Agent practice is for sale. The firm is well balanced with a tax practice that produces 71% of the firm’s revenue with write-up generating the remainder of the income. The practice is well positioned for future growth due to having a solid staff serving long term clients. The seller is retiring but will be available to assist in transition. For any firm looking for a satellite office, an existing practice wishing to branch out, or an individual who has aspirations of getting out on their own, this practice is an excellent choice. (WA1069) Poulsbo CPA Tax Practice for Sale: This solid CPA practice with an excellent client base is for sale. The firm is full of satisfied clients who refer approx. 95% of all new clients. The firm with this kind of reputation works extremely hard at providing excellent service to a client base with a health mix of all types of clients. As with most firms, the practice mix consists of mostly individual returns but does have business returns as well. For buyers looking for an established practice or firms seeking markets for new growth this firm in one you should inquire about. (WA1068) Seattle Tax Practice For Sale: This accounting firm is a tax and write-up practice that was formed 38 years ago. The mix of professional services is approx. 65% income tax, 32% write-up, and 3% consulting with excellent per return fees. The firm has always stressed excellent service to its clients. The result is a practice filled with long-term clients who refer excellent new clients. The firm’s clients interact with the practice generally by phone, mail, and electronic media making this practice one with very little walk in business. Most clients are located or work in the Seattle Central Metropolitan area and appreciate easy driving access of a neighborhood office location for those times when in person meetings are desired or necessary. In recent years, the practice has been pruned to allow the owner to transition to retirement, yet total fees have continued to increase. What remains are clients who are the envy of many firms. This practice is an ideal purchase opportunity for any professional looking for financial reward and professional challenge. . (WA1065) South Puget Sound Area-CPA Practice For Sale: This CPA practice has a broad range of clients with no concentration in one area and a broad range of services that are rendered in the areas of income tax,auditing,and financial services.The firm has a history of stability that has fostered excellent client relationships that provide consistent referrals.This firm is further enhanced by an outstanding staff that has outstanding credentials making this firm unique in its ability to provide quality professional services at all service levels to all clients. The financial advisory segment of this practice makes it an obvious advantage for any firm looking to add to their suite of professional services. Any firm with designs on expanding services, looking for expertise, along with an outstanding client list has found an opportunity that is hard to beat with this firm.

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