WashingtonCPA 2016 Spring by Washington Society of CPAs

washington

CPA Spring 2016

Volume 59, Number 4

The Future of Small Business Finance

2016-2017 Board of Directors Nominees The CGMA Exam Five Factors for the Successful Buyer

www.wscpa.org

WashingtonCPA Spring 2016

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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 William A. Simer Chair David J. Miniken Vice Chair Kirsten S. Duke Treasurer Joseph P. Smith Secretary Heather L. Fitzpatrick Immediate Past Chair Richard E. Jones President & CEO

Laurie J. Anderson Kristine L. Lambright Ryan T. Bartlett Lucy L. Liu Justin A. Bourn Amanda V. O’Rourke Thomas G. Donaghy Michael Reeves Robert W. Heller Abby M. Sanders CHAPTER BOARD CHAIRS Erika Hosea Bellevue Area Lydia Ahn Bellingham Area Dana Lashbaugh Everett Area Diane Bingaman Olympia Area Joe O’Meara Seattle Area Fred Peck Spokane Area Dani Espinda Tacoma Area Alexander King Tri-Cities Area Molly VanderWoude Tri-Cities Area David Stubing Vancouver Area Sean Kinney Yakima Area

Jeanette Kebede

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.

CONTENTS 8

The Future of Small Business Finance

12 2016-2017 Board of Directors Nominees 17 CPAs, Advocacy and Politics: Where do you fit in? 19 Constructing Waterfall Charts in Excel 2016 22 Firm Administrator Resources

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.

24 Thank You to Foundation and CPAPAC Contributors

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.

28 The CGMA Exam

Periodicals postage paid at Bellevue, Washington and additional mailing offices.

31 Five Factors for the Successful Buyer

Cover photo: © Maciej Bledowski/iStock by Getty 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

CPE Digest

News Briefs

Conferences

Advocacy

Registration

Tech Tip

Classified Ads

Chapters

Member Profile

Networking Events WashingtonCPA Spring 2016

LEADERSHIP LENS

Transitions By Rich Jones, CPA, CGMA, President & CEO

wo years prior to her retirement last May 31st, Ann Young and I discussed the timing of her retirement in relation to mine.Ann wanted to ensure that her replacement had sufficient time to learn the job before I decided to retire. She understood the importance of succession planning and the importance of her role in supporting me as CEO. Fortunately for the WSCPA, her replacement, Helen Doty, has done an outstanding job in adding value as Manager of Governance and Human Resources. Similarly, Rick Sweeney, recently retired Executive Director (E.D.) of the Washington State Board of Accountancy (WBOA), had the foresight to prepare his organization for his eventual retirement. He established a Deputy Director position and hired Jennifer Sciba several years ago with the knowledge that, as a gubernatorial appointee, the E.D. served at the pleasure of the Governor and could be asked to retire at any point. Rick wanted to make sure that whenever he retired the Board would have someone who could step in and keep things running until a new E.D. was hired. Our state requires that the Executive Director of the WBOA be a CPA--which Jennifer is not, so Rick knew she could not be his successor. At about the same time Rick hired Charles Satterlund as the Director of Investigations for the WBOA. I had the privilege of serving on the committee that selected Charles for that position and I remember one of the criteria we considered in filling the position was whether the candidate had the potential to grow into the E.D. position when Rick was ready to retire. I felt that Charles had that skillset, and was very pleased when Charles was appointed to the position upon Rick’s retirement. This was a classic example of thoughtful and

WashingtonCPA Spring 2016

There is some personal hesitancy to have to admit that at some point you have to hang up your cleats, just like Marshawn Lynch recently did.

effective succession planning. Back at the WSCPA, Judy Love, Director of Advocacy, planned to retire in December 2014. She had been very successfully directing the Society’s government relations and advocacy work since I arrived at the WSCPA in May 2005 and had been working in the advocacy arena with my predecessor, Marcia Holland, before that. Although Judy trained me in the government relations area for almost a decade and made sure I was up to speed when she retired, I realized that the Society would need someone else to step into that role when I retired. The role seemed ideal for Kimberly Scott, who had been active in Olympia in lobbying for the Financial Literacy Public/ Private Partnership initiative and enjoyed interacting with legislators. Before retiring, Judy started sharing her advocacy expertise with Kimberly, who has taken the lead like a pro on our legislative successes during the past two years. I have talked with the WSCPA management team and Board of Directors for the past 2+ years about my plans for retirement. A year ago I signed my final employment contract for two years ending May 31, 2017.The Board and I had been planning for this for some time, so this was not a surprise. It has not been

a secret during this time, but we also did not see much purpose in making an announcement so far in advance of my actual retirement date. There is some personal hesitancy to have to admit that at some point you have to hang up your cleats, just like Marshawn Lynch recently did. The WSCPA is well positioned to make this transition. The management team has strong leadership and talent in each of our key areas (Education, Communication, Advocacy, Finance, Membership, Professional Standards, and Human Resources) and each of these people has taken on new responsibilities over the past two years with great success. As a team we have been planning for these changes and are well prepared. Bill Simer, our current Board Chair, and Dave Miniken, Vice Chair, will co-chair a Selection Committee to recommend the next President and CEO to the WSCPA Board of Directors. Together they will appoint the selection committee, which will include diverse representatives from the Society’s membership, and direct its activities. Additional details about the search will be shared as they are available. The goal is to have a new CEO in place before I retire on May 31, 2017. I expect many qualified internal and external candidates to apply, and I am certain that the Society will have an exceptional President and CEO to lead us into the future. I am certain I will have additional opportunities to express how much I have enjoyed my time with the WSCPA and what an honor it has been to represent and lead this organization. It will forever be the highlight of my professional career. You can contact Rich Jones at rjones@ wscpa.org. www.wscpa.org

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To be eligible to receive your WSCPA Passport Corporate Card, renew your 2016-2017 WSCPA membership now at www.wscpa.org/renew WashingtonCPA Spring 2016

LEADERSHIP LENS

A Major ‘Get To’ By William Simer, CPA, WSCPA Chair for 2015-16

have a way of describing life as being made up of “Get To’s” and “Have To’s” and being the Chair of the WSCPA has been a major “Get To” for me. It’s hard to believe that by the time you read this my year as Chair will be nearing its end. It has gone more quickly than I could ever have imagined. Along the way I’ve had the opportunity to work with a wonderful Board of Directors of qualified and enthusiastic colleagues, an incredible staff, and a supportive group of members. We set out this year to visit local chapter meetings throughout the state, and I’ve had the opportunity to take part in two of these visits. I’ve been impressed with the dedication that chapter leaders and members alike have shown to our profession, and to supporting the WSCPA. Along the way I’ve made new friends and renewed old friendships. As I step back to consider the accomplishments of this year, our work with the Washington State Board of Accountancy (WBOA) and the Washington CPA Foundation to establish a major scholarship program has to rank at the top. You’ll read more about this on page 24, but I wanted to take the opportunity to thank everyone who worked to make this happen. It’s been a great success and we’re just getting started. In the first quarter of this year we’ve been directly engaged to draft legislation and work with both the Washington State House and Senate to bring forward important bills that will provide firm mobility and bring the definition of attest in the Washington State Accountancy Act into closer conformity with the Uniform Accountancy Act. The leadership of the WBOA worked closely with us on this legislation and it passed out of both the House and the Senate and was signed by the Governor on March 31.

WashingtonCPA Spring 2016

Woody Allen said that 80 percent of success is showing up, and I think he’s got it right. So, the next time you read about a local chapter activity, see a request for help in reviewing scholarship applications or an invitation to join a committee or task force, say “yes” and then show up.

The year also featured significant developments in the U.S. CGMA designation. The Board and Council of the AICPA have approved Non-CPA CGMA members in the U.S. as was the case outside the U.S. prior to these votes. Starting April 18, AICPA members are being asked to vote on the formation of an international joint venture between the AICPA and the Charted Institute of Management Accountants (CIMA) to advocate for the accounting profession on an international scale. These changes represent significant developments for our profession on a global scale. The role of the WSCPA in this transition will be the subject of much discussion over the next several months, and we’ll examine and debate both the potential opportunities and potential challenges that may be available to us. We’ll be critical in our examination of these issues, and will welcome the input of our members as we chart a course.

at the state or even the national level. These opportunities rarely come your way without some individual initiative so that’s the message I’m going to leave you with as I conclude my term as Chair. Woody Allen said that 80 percent of success is showing up, and I think he’s got it right. So, the next time you read about a local chapter activity, see a request for help in reviewing scholarship applications or an invitation to join a committee or task force, say “yes” and then show up. You’ll “get to” be part of something larger than yourself, and the friends you will make along the way will make participation both meaningful and enjoyable. To learn about upcoming chapter events, join a committee or become a volunteer, visit www.wscpa.org/community. What are you waiting for? William Simer, CPA, is Partner with Eide Bailly LLP in Spokane.You can contact him at bsimer@eidebailly.com.

The common thread that I’ve noted throughout all of this past year is the significance of dedicated and engaged individuals who have stepped up to be active participants in leading our profession. That leadership can take many paths, from working with your local chapter to being active in committees

www.wscpa.org

WashingtonCPA Spring 2016

SMALL BUSINESS FINANCE

The Future of Small Business Finance By Mike Paul

Commercial Banks

I was drawn to a financial services career in 1977 and believed banking would provide secure employment and a chance to use and develop my analytical skills. I also expected banks would offer

WashingtonCPA Spring 2016

“S

mall business is the backbone of the U.S. economy. Small businesses are primary job creators.” While these statements are popular sound bites during an election, it should be noted that newer firms, regardless of defined revenue and employment size parameters, are net providers of employment growth. What do we mean by small business anyway? The U.S. Small Business Administration defines a small business (eligible for 7(a) and 504 program financing) based on its industry, ranging from $750,000 to $38.5 million in revenues, and having 500 to 1500 employees. For purposes of this article, which reviews funding sources available to small business, let’s assume the definition of small business is closely-held firms with credit needs up to $1 million, excluding real estate financing. This is a more practical limit, based on the manner in which small business is served by lenders. There are two basic forms of support to a balance sheet - Debt and Equity. While the media often will describe both as “capital,” debt is a liability, structured to be repaid and is subject to repayment analysis, and requires historical cash flow adequate to service existing and proposed debt. Equity is ownership in the firm, and requires no repayment analysis, rather an assessment of the potential return on investment and the likelihood of a liquidity event at some time in the future. Now that those definitions are clear, let’s look at the various funding sources available to small businesses: commercial banks, credit unions, alternative financing, peer to peer lending and crowdfunding.

plenty of opportunities to serve walkin credit seekers. Nearly 40 years later, the analytical part remains paramount, job continuity was deeply impacted by deregulation of the late 1970s and 1980s and the following industry consolidation, and walk-in applicants, like the three martini lunch, was an illusion. For nearly 200

years, commercial lending was the nearly sole domain of commercial banks. The growth of both credit union membership and the information age has allowed other industries to serve small business. As a current practice, national and regional banks tend to segment commercial clients by revenue and or credit usage www.wscpa.org

SMALL BUSINESS FINANCE

size, which are reflections of relative contribution to profitability. Thus, small business, middle market and large corporate segments are served according to the respective perceived potential return. Middle market and large corporate firms are more valuable, based on volume and use of peripheral services like treasury management, foreign exchange, and interest rate protection products. The small business segment tends to use fewer services, having smaller and less complex needs. As a result, most national and superregional banks (assets over $50 billion) tend to serve small business with a local sales representative, centralized or regionalized underwriting, loan servicing and operational service centers.This provides economies of scale in pricing and production resources, a training ground for young bankers, and access to a slate of products and services. Regional banks, based in the Northwest, with assets in the $1-20 billion range, also tend to deliver business by market segments driven by borrowing level, and also tend to offer centralized underwriting. Community banks, with assets under $1 billion, tend to focus on small business, and offer a less comprehensive menu of services, delivered by more experienced relationship managers. According to the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA), small business borrowing from commercial banks represents 93% of the total universe, with 59% served by the national banks with asset levels over $100 billion. Regional banks with assets $1-100 billion account for26% of small business loans, and community banks account for 8%. There are now 5,309 commercial banks in the U.S., with 52 chartered in the State of Washington. Benefits of borrowing from commercial banks are historical expertise, well developed standard practices and availability of peripheral services. www.wscpa.org

Drawbacks include a pro-cyclical regulatory environment which tends to restrict credit during recessionary periods and continuing consolidation which can cause relationship management turnover.

Credit Unions

Credit unions have been making member-business loans (MBLs) since their inception in the early 1900s. In the first 90 years of their existence, there was no

There has never been a period in history where small business borrowers have more choice in providers... •

Commercial Banks

•

Credit Unions

•

Alternative Financing

•

Peer to Peer Lending

•

Crowdfunding

cap on business lending. In 1998, Congress imposed the current cap for aggregate MBL at 12.25% of total assets, with exceptions in place and legislation pending to increase the cap in the near future. Like commercial banks, credit unions are depository institutions, with deposit insurance provided the National Credit Union Share Insurance Fund (NCUSIF with regulatory authority being dependent upon state or national charter. Credit unions are cooperative ownership structures. Nationwide, there are now 6,231 credit unions. In Washington, there are 94 credit unions, 52 of which offer

member business lending. Initially, credit unions focused on permanent commercial real estate loans, but more recently also began offering construction lending and commercial lending for working capital, expansion and equipment financing support. Consolidation within the commercial banking industry has resulted in more migration of commercial bankers to credit unions, and the ability to create credit administration and portfolio management systems required for safety and soundness. According to the FDIC and NCUA, credit unions account for 7% of small business lending. Benefits of using a credit union for member business services include membership in a co-op, comparable products and services to a commercial bank, competitive pricing and increasingly experienced relationship managers. Drawbacks are similar to those of commercial banks – significant regulatory framework in place, consolidation via merger, although less so than commercial banking.

Alternative Financing

There are several sources of alternative financing for working capital and equipment. In addition to large national providers (i.e. GE Capital), there are many privately owned firms which offer credit with specialized monitoring requirements. Many of these firms can finance a borrower with operating losses, provided cash flow from collateral conversion can revolve the borrower’s debt level. While a large alternative lender like GE Capital has access to multiple financing sources, both short and long term, debt and equity, smaller firms tend to rely more heavily on their own equity. Firms with earnings volatility and or high financial leverage can often find funding here. Benefits of alternative lending are availability and lender expertise, and the drawback is cost.

WashingtonCPA Spring 2016

SMALL BUSINESS FINANCE

Peer to Peer Lending

Technology has dramatically changed forever the small business lending landscape. The information world has given birth to Peer to Peer or P2P lending. Since 2007, several firms have shown explosive growth in small business lending. Morgan Stanley estimated the P2P market share at 3.3% in October 2015, and P2P was expected to originate $7.9 billion in new loans in 2015, up 68% from the prior year. These “marketplace” lenders provide an exchange where accredited and institutional investors can fund small business borrowers. Underwriting techniques are broader than depository institutions in this non-regulated market, and include evaluation of social media, product reviews and other nontraditional methods. Loans range from $5,000 to $300,000, with a sweet spot under $50,000. The benefits are convenience, speed of decisioning and more liberal availability, whereas the drawbacks are higher pricing and the lack of a professional financial representative. The bigger players in this industry are Kabbage, OnDeck, Lending Club, Prosper and CAN Capital. To date, this industry shows little signs of slowing down. Some are partnering with commercial banks to generate small business loans from bank referrals.While we do not know how this industry will perform during a recessionary business cycle, its ability to attract equity investors, including institutions has been impressive to date.

Crowdfunding

The passage of Sarbanes Oxley Act in 2002 provided greater disclosure and financial reporting requirements which did provide more transparency for investors, but raised the cost of becoming and being a public company. In 2012, in order to broaden small business access to capital markets, Congress passed the “Jumpstarts our Business Startups Act” (JOBS Act), and the State of Washington implemented rules in late 2014. The “Crowdfunding” program is intended to simplify, reduce the cost of, and broaden the investor pool for, raising equity by small

WashingtonCPA Spring 2016

Technology has dramatically changed forever the small business lending landscape.

business. Eligible firms must be located, earn 80% of their revenues, house 80% of their assets and use 80% of the proceeds in the state in which the equity is issued. Generally, eligible firms can raise up to $1 million, with less costly registration, financial reporting and disclosure requirements than are in place for larger firms and offerings. While the program is new, it appears the terms and cost of issuance can be quite advantageous to a small business. Balance sheet-wise, equity is more permanent than debt, and is an excellent source of support for long term growth. Greater detail may be found at the State of Washington Department of Financial Institutions website: www.dfi.wa.gov/small-business/smallcompany-offering-registration.

Conclusion

There has never been a period in history where small business borrowers have more choice in providers. The financial services world, owing largely to 7 years of stimulative monetary policy practiced by the Federal Reserve System, has left lending and funding industries with low interest rates and abundant liquidity. Dependent on the length of time in business, the volatility of earnings, depth of management, need for relationship management advocacy, small firms

will continue to use depository institutions as their more traditional sources of credit. Start-up firms, those with high growth potential or volatile earnings, are more likely to better be served by P2P sources and crowdfunding. If Moore’s Law applies to the provision of financing, one would expect the growth of the nonbank sources to grow significantly over the next 10 years. While I may be ending my career by that time, the digital financial fun may just be getting started. Mike Paul is Senior VicexPresidentxand RegionxDirectorxfor HarborstonexCredit Union. He is a 38-year veteran of commercial lending and business services, having served as a commercial bank, insurance firm and credit union executive. He is a former commercial bank CEO and a past Chairman of the Oregon Bankers Association. He can be reached at mike.paul@ harborstone.com or 206-695-4340.

www.wscpa.org

NEWS BRIEFS

Board of Accountancy Announces New Executive Director On February 8, 2016, The Honorable Jay Inslee, Governor of the State of Washington appointed Charles Satterlund, CPA, CIA, as the Executive Director for the Washington State Board of Accountancy (WBOA). Charles lives in Olympia, Washington and holds a bachelor’s degree in Business Economics from Central Washington University. Prior to his appointment as the current Executive Director, Charles served the agency as the Director of Investigations. Prior to joining the WBOA, Charles worked for the Department of Health, the State Auditor’s Office, and the Department of Social and Health Services during his 28 year career with the State of Washington.

Free Monthly PCPS Resource In partnership with the AICPA Private Companies Practice Section (PCPS), the WSCPA offers a free rotating tool available every month at www.wscpa.org/pcpsresources. Past tools have included: Overcoming Pricing Objections Tool, Firm inMotion Transition Continuum and Checklist, Business Development Expectations by Level Tool. Watch the Short Form for a link to the latest tool or visit the website. The WSCPA office will be closed Wednesday, April 27 for staff training.

Correction Notice Christopher Hesse was not included on the AICPA Committee list in the Winter 2016 issue. He serves on the Tax Executive Committee. www.wscpa.org

IN MEMORIAM:

Ralph W. Garhart

Ralph William Garhart, 1972-1973 Board Chair of the WSCPA, passed away on February 3, 2016. He was born on November 21, 1922 in Portland, Oregon. He joined the U.S. Army Air Corps in December, 1941 and served in various capacities until November, 1945. He attended the University of Washington on the G.I. Bill, where he was president of the Beta Alpha Psi accounting fraternity. He graduated magna cum laude and Phi Beta Kappa in 1950. He worked for a Portland CPA firm before returning to Seattle in 1953 to work for Ralph Peterson, who formed the Peterson Sullivan CPA firm. An active WSCPA member throughout his career, Ralph retired as Managing Partner of Peterson Sullivan in 1987, but continued to work as a consultant at the firm until 1990. Ralph is survived by his wife Molly and her three children and their families.

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Payroll

Benefits

Learn more at www.wscpa.org/benefits

WashingtonCPA Spring 2016

BOARD OF DIRECTORS

2016-2017 Board of Directors Nominees The Board of Directors is pleased to present for your review nominees for the Society’s 2016-17 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, 2016. If a contest for one or more positions develops, an election for those positions will be held at the meeting.

Thomas G. Donaghy, CPA Position

Vice Chair

Term

1 year; automatically becomes chair 2017-18

Board service

Since 2013

Tom Donaghy, CPA, is an investment officer and financial advisor in Bellingham, Washington. Previously, Tom was a Financial Consultant with Smith Barney, a Financial Analyst at Boeing Corporate Headquarters, Resident Audit Manager for Puget Sound Bancorp, and a Staff Accountant for Moss Adams. A graduate of Seattle University, Tom is an active member of the Knights of Columbus, North-west Business Club, and a Team Captain for the “Big Climb,” an annual fundrais-ing event for the Leukemia & Lymphoma Society. Tom has served on various com-munity boards and has also sponsored musical events which have raised thou-sands of dollars for local charities in the Whatcom County area for many years. Tom and his wife Wendy live in Blaine and have two sons.

WashingtonCPA Spring 2016

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.

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BOARD OF DIRECTORS

Meet the Incoming Chair: David J. Miniken, CPA

Dawn E. Beck, CPA

Erika C. Hosea, CPA

Position

Director

Position

Director

Term

3 years

Term

3 years

Dawn Beck, CPA, is the Controller for the Seattle Art Museum. She is a Seattle native and a graduate of the Michael G. Foster School of Business at the University of Washington. She has 20 years of experience in both public accounting and private industry. Before joining SAM, Dawn specialized primarily in the restaurant and food manufacturing industries, including experience at the Space Needle, Wild Ginger/Triple Door, and the Redhook Ale Brewery. Dawn has two grown children, loves to cook and run half marathons, volunteers with senior citizens and lives with her husband in North Seattle.

www.wscpa.org

Erika Hosea, CPA, CGMA, is a wellrounded professional with years of industry experience in management, operations, process, auditing and payroll accounting. She began her career with KPMG implementing full scale enterprise solutions for Fortune 500 organizations. Thereafter, she developed her career in the telecom and transportation sectors, most notably T-Mobile, Inc. and Alaska Airlines, Inc. Her bi-cultural background and focus on community collaboration has led her to a number of volunteer opportunities and community leadership roles. Erika is a graduate of the University of Oklahoma and studied abroad at the Universidad de Santiago de Compostela in Spain.

Dave Miniken, CPA, CGMA, MBA, is a member of the management team at Sweeney Conrad, where he serves as the Director of Sweeney Conradâ&#x20AC;&#x2122;s audit and accounting practice. Dave has more than 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 BellevuexDowntownxAssociation, Bellevue Rotary, and the Bellevue Schools Foundation. Dave and his wife, Leslie, live in Issaquah with their two daughters.

WashingtonCPA Spring 2016

BOARD OF DIRECTORS

Rhonda S. Powell, CPA

Kelley Smith, CPA

Ronald L. Tilden, CPA

Position

Director

Position

Director

Position

Director

Term

3 years

Term

2 years

Term

3 years

Rhonda Powell, CPA, is the Firm Director of Tax for Moss Adams. She leads the firm’s tax committee, focusing on all aspects of the tax practice – clients, growth, people, and safety. She is responsible for the firm’s tax quality control policies, continuing education, and technology. Prior to becoming Firm Director of Tax, Rhonda provided tax services related to federal income tax, ASC 740 issues, accounting methods, research tax credits, international taxes, and state and local taxes. She has served small, closely held businesses to multinational companies in a variety of industries, including technology, automotive, forest products, manufacturing, retail, and utilities.

WashingtonCPA Spring 2016

Kelley Smith, CPA, is an experienced finance professional who joined Microsoft in 2010 and is currently working as an Audit Manager in the Internal Audit organization. Previously, she’s held various finance roles at Expedia Inc. and the University of Washington. Kelley holds a Bachelor’s degree in Economics from the University of Washington and is a CPA licensed in Washington State. She currently serves as Vice President on the Board of Directors for the National Association of Black Accountants (NABA) Seattle Chapter.

Ron Tilden, CPA, MBA, is a Senior Lecturer at the University of Washington where he has taught accounting and business classes for the past 15 years. Ron was the recipient of the Distinguished Teaching Award for the Bothell campus in 2013. He graduated from the University of Washington in 1979 and began his accounting career with Deloitte. He later was Chief Financial Officer of Intermec Corporation and WRQ, Inc. Ron has three grown children and lives with his wife, Gail, in Woodinville.

www.wscpa.org

You’re invited Remaining on the Board The following members currently serve on the board and will serve on the 2016-17 Board in the following positions: Chair: David J. Miniken, CPA, CGMA

Immediate Past Chair: William A. Simer, CPA

David E. Trujillo, CPA Position

Director

Term

3 years

David Trujillo, CPA, CGMA, is Executive Director of the Washington State Gambling Commission. He has been an enforcement officer or overseeing one or more enforcement functions of the agency since 1992. Dave has been a licensed CPA and actively involved with the WSCPA since 1998. He has served on the Society’s Board of Directors, the Professional Conduct Committee, Olympia Chapter Board, and on various Society Task Forces. In 2013-14, he received the Society’s Outstanding Volunteer Leader Award. A graduate of Western Washington University and Central Washington University, Dave is a police academy graduate, part of the National Guard Community, a recipient of the FBI LEEDA Trilogy Award and serves on the Saint Martin’s Accounting Advisory Board. He makes his home in Thurston County. www.wscpa.org

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

Directors: Robert W. Heller, JD, LLM Amanda V. O’Rourke, CPA Abby M. Sanders, CPA Ryan T. Bartlett, CPA Justin A. Bourn, CPA

Annual Meeting How to Use Big Data to Create Business Advantage in the Real World BRIAN DENNEHY, PHD Executive Vice President and Chief Marketing Officer, Nordstrom, Inc. Thursday, June 9 3 :00-6:00 pm Bell Harbor International Conference Center Seattle, WA Members $30 | Students $10 Networking reception included Register at www.wscpa.org

Kristine L. Lambright, CPA Michael W. Reeves, CPA

WashingtonCPA Spring 2016

www.wscpa.org

ADVOCACY

CPAs, Advocacy and Politics: Where do you fit in? By Kimberly Scott, CAE

If you have the passion to get involved in politics, I am inviting you to participate. CPAs have unique experience and expertise in issues such as taxes, small businesses, budgeting, and the long-term impact of financial decisions. CPAs who serve in elected offices bring a perspective that is often missing, needed and valued. Washington State currently does not have a CPA in the State legislature or in Congress. However, there are a few CPA members serving at the county level in elected roles in Washington State. There are CPAs serving in elected roles from other states at the federal level. AICPA Senior Vice President for Congressional & Political Affairs, Mark Peterson says this about the elected officials, “The 11 representatives and senators who are CPAs or accountants bring a unique perspective to financial policy debates on Capitol Hill.”

Photo courtesy of Washington State Legislative Support Services

ave you ever been interested in something and want to get involved, but you didn’t know how? I have. It is typically something that I am passionate about—either for or against. I really want to get involved to make a change, or support the cause, but I am not certain how to start or whether my participation will be valued. Sometimes it takes a personal invitation to convince me to participate.

WBOA Executive Director Charles Satterlund, WSCPA Vice Chair Dave Miniken, WSCPA Vice President of Government and Member Relations Kimberly Scott, WBOA Deputy Director Jennifer Sciba, Representative Brandon Vick and his daughter Makenna watch as Governor Inslee signs Engrossed Substitute House Bill 2433 on March 31. The bill provides for firm mobility and brings the definition of attest in the Washington State Accountancy Act into closer conformity with the Uniform Accountancy Act. •

All campaigns need a CPA with campaign finance experience. If you know someone who is running for office and they don’t have a CPA, this is your opportunity to volunteer.

•

The CPAPAC will be looking for CPAs to deliver campaign checks to their local representatives or senators this summer. If you are interested in helping, please contact me by the beginning of June.

If you are interested or ready to run for an office, let me know and I will share the available resources to assist you. Running for office may not appeal to you, but everyone can make a difference by getting involved in other ways. This is an election year (in case you have missed the media coverage), not just on a national level, but at the state level as well. Here are a few ways you can get involved:

www.wscpa.org

•

Legislators like to hear from their constituents about how issues affect them.You would be surprised at how valuable your input is to legislators. Reach out to your local Representative or Senator about an issue, or attend an event they will be attending to meet them in person.

If you decide to get involved in one of the above ways, please let me know so that I may share resources to assist you. WashingtonCPA Spring 2016

ADVOCACY

More than once the relationship that the CPA had with their local legislator as a trusted advisor or friend made all the difference in securing their support for the legislation.

Maybe you are interested, but want a way to learn more, or start slowly: •

•

Attend Washington State Board of Accountancy (WBOA) meetings. The quarterly meetings are open to the public and the decisions directly affect you as a licensed CPA in the state. Join a WSCPA committee. Often times when a legislative issue arises at the state or national level, we invite committee members to provide feedback on the issue. Join the Grassroots Committee to stay updated on issues. Sometimes this group is asked to reach out to their representatives or senators when the WSCPA is weighing in on bills or key issues. If you’re invited to phone or email a representative in this way, you’ll be provided with tools, such as talking points, to enable you to highlight the key issues and concerns.

Some of our Grassroots volunteers jumped in this legislative session to support the bill we ran that updated the definition of attest, and allows firm mobility.

WashingtonCPA Spring 2016

•

WSCPA members and WBOA members worked together to draft the bill language.

•

Once we found a legislative sponsor and officially had a draft bill, some members testified in support of the bill in Olympia.

•

Other members called or sent emails to their legislators letting them know they supported the bill and asked that the legislator support the bill and pass it out of committee. • More than once the relationship that the CPA had with their local legislator as a trusted advisor or friend made all the difference in securing their support for the legislation.

The majority of the bills passed by the House and Senate must be signed by the Governor into law within 20 days after the end of session. If they are not signed, they are considered dead and need to be ran through the houses again. Our bill made it into law with just a couple days to spare. ESHB2433 was officially signed by the Governor March 31st. It was a team effort and a real testament to the credibility of CPAs and how essential relationships are in getting a bill passed through the legislative process. A special thank you to Bill Simer and Tom Neill for testifying. However, many more members sent emails and made phone calls. Thank you to everyone involved! If advocacy or politics is something you are passionate about, please let us know. Your voice is powerful and your help is always needed. Kimberly Scott, CAE, is WSCPA Vice President of Government and Member Relations. Contact her at kscott@wscpa.org.

I am thrilled to report that on March 1st our bill, ESHB2433, was voted off the floor of the Senate and was on its way to the Governor’s desk for a signature to be signed into law. If you were following what happened in Olympia this session, you know that legislators went into a special session when regular session ended March 10th. Legislators needed the special session to finish the work on the budget. The Governor was not signing bills until their work was completed.

www.wscpa.org

TECH TIP

Constructing Waterfall Charts in Excel 2016 By K2 Enterprises

xcel 2016 added six new chart types, several of which will be very useful to accounting and financial professionals. In particular, waterfall charts – newly added to Excel 2016 – can be very beneficial when attempting to show how a total was distributed amongst various components, such as how total revenue was reduced by cost of goods sold and operating expenses when arriving at net income. In this tip, you will learn how to create waterfall charts using the tools found in Excel 2016.

Arranging Your Data

The first step in constructing your waterfall chart is to ensure that you arrange data properly. In this example, we want to show how a company’s Total Revenue of approximately $23 million was reduced by $10 million in Cost of Goods Sold and $6 million in SG&A Expenses to arrive at net income of $7 million. Therefore, we need to arrange the source data for the waterfall chart in Excel, as shown in Table 1.

Figure 1 - Inserting a Waterfall Chart

Table 1 - Income Statement Data Arranged for Waterall Chart

Notice that the arrangement of the data follows the order in which we will want the waterfall chart to “step-down” from $23 million to $7 million.

Creating the Waterfall Chart

Once you have arranged your data, as shown above, select the entire range of data. Then, choose Insert, Charts, All Charts, and select the Waterfall option, as shown in Figure 1. Upon doing so, your basic waterfall chart should resemble that shown in Figure 2.

Cleaning Up the Waterfall Chart

The basic chart presented in Figure 2, does not tell the story that we want it to tell. www.wscpa.org

Figure 2 - Basic Waterfall Chart WashingtonCPA Spring 2016

TECH TIP

Specifically, it does not “step down” from $23 million in Total Revenue to $7 million in Net Income, so we have a bit of cleanup work to do. Begin by selecting the Gross Margin data point and in Series Options, check the box marked Set as total. Repeat the same process for the Net Income data point. Establishing Gross Margin and Net Income as “totals” instructs Excel to anchor these data points on the horizontal axis so that their values do not appear to “float” in the chart. Upon indicating that these two data points are totals, your chart should resemble that pictured in Figure 3. A little additional cleanup and formatting efforts transforms the chart in Figure 3 to the final product pictured in Figure 4.

Figure 3 - Modified Waterfall Chart

Summary

Excel 2016 makes six new chart types available to all users, and waterfall charts are included in this list. Properly constructed, waterfall charts can be very effective at telling the story of how we get from point A to point B, so take advantage of this feature in Excel 2016 to create charts that are more effective at communicating your intended messages. For a video demonstration of this tip, please visit www.tinyurl.com/k2tips191.

Learn More APRIL 22 Excel Tips, Tricks and Techniques for Accountants Bellevue - 8 CPE credits MAY 5 Excel Formula Expert Series Defined Names & Tables Webinar - 2 CPE credits

www.wscpa.org/cpe 20

WashingtonCPA Spring 2016

Figure 4 - Completed Waterfall Chart in Excel 2016

Free Tax Podcasts www.wscpa.org/more/podcasts

www.wscpa.org

WashingtonCPA Spring 2016

Firm Administrator Resources

wscpa.org

WEBSITE FEATURE

COMMITTEE SPOTLIGHT

Tools for Firm Admins

Firm Administrators Want a way to connect and learn from other firm administrators? Join the WSCPA Firm Administrators committee, which meets during even months of the year at various member firms in the Puget Sound area to discuss topics of interest.

If you are a firm administrator for your firm, you can access various self-service tools via the WSCPA website. With these tools, you can: • • • • • •

Renew membership for your organization’s staff in one payment (see below for details) Register multiple staff at once for a CPE event Print CPE transcripts and certificates of attendance for your staff Update your firm’s employee roster Update your firm’s contact information Enroll or renew in the CPA referral service

NEXT MEETING: Thursday, April 28 - 12:00-2:00 pm VWC, Kirkland Department of Labor Rules on Exempt and Non-exempt Staff At future meetings, the committee will discuss employee manuals, management training, and young professionals (newer staff to share what keeps them motivated). To join the committee, contact Member Services at memberservices@wscpa.org.

To learn more about becoming a firm administrator or if you need assistance with these tools, contact Member Services at memberservices@wscpa.org or call (425) 644-4800.

How can I renew WSCPA membership for my organization’s staff in one payment?

Contact the WSCPA to set up firm billing.

Once membership renewal has been posted (in mid- April), go to www.wscpa.org/mywscpa and login.

From your MyWSCPA page, under My Recent Invoices select “View All Invoices.”

WashingtonCPA Spring 2016

Membership renewal invoices will appear under My Open Invoices. Click Customer Name to sort invoices in alphabetical order. Check the box next to each staff member’s invoice and select Add to Cart.

If your staff chooses to contribute to the PAC and Washington CPA Foundation, you may contribute here. Check the appropriate box, select or enter the contribution amount and click OK. Or, click the x in the top right corner to continue to the Shopping Cart.

www.wscpa.org

Confirm payment details are entered correctly. To ensure that you receive an email receipt, be sure that Send Confirmation Email box is checked.

Click Submit Order.

In the Shopping Cart, click Check-Out.

Enter payment information and click Continue. Questions about how to pay online or submitting payment? Contact Roo Mulligan: (425) 586-1142rmulligan@wscpa.org

www.wscpa.org

WashingtonCPA Spring 2016

Thank You to Foundation and CPAPAC Contributors The following individuals and organizations donated to the Washington CPA Foundation or CPAPAC from March 2015-February 2016.

www.wscpa.org/foundation

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. The last year has been tremendously important for the Foundation. In 2015, the Washington State legislature passed substitute Senate Bill 5534 which created the Certified Public Accounting Scholarship Program. Governor Inslee signed the bill on May 8, 2015 to be effective July 24, 2015. The final State Operating Budget for 2015-17 allocated a total of $3.3 million to this program and in 2016, 35 $5,000 scholarships were awarded. The Foundation also awarded nine named scholarships, two endowed scholarships and one Foundation Ph.D. scholarship.

2016

Win a $5,000 accounting scholarship...

46 scholarships

#ONEOF40

www.wscpa.org/scholarships

awarded

$5,000 each | $230,000 total

311

online applications started

3.6 average GPA

172

final applicants

selection committee members

Washington colleges Ph.D. candidate

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

WashingtonCPA Spring 2016

Named Scholarship Contributors and Endowments ($5,000+)

Contribution of $5,000 toward a named scholarship to be awarded the next academic year.

Roy J. Polley Memorial Scholarship Clark Nuber Accounting Scholarship EY Accounting Scholarship KPMG Accounting Scholarship Moss Adams LLP Accounting Scholarship Peterson Sullivan LLP Accounting Scholarship PwC Accounting Scholarship Sambataro Family Foundation Shimer Family Scholarship Waterman Endowed Scholarship

Chairmanâ&#x20AC;&#x2122;s Circle ($2,500+) Mr Richard E Jones, CPA, CGMA

Senior Executives Circle ($1,000-$2,499) Ms Kiyosha Baird, CPA

Executives Circle ($500-$999)

or wait tables for 527 hours*

Foundation Contributors

Ms Pat L Bohan, CPA, CGMA, CGFM Mr Weldon T Burton, CPA Mr Scott E Eschbach, CPA Mr Brett James Jordan, CPA Goldman Sachs & Co Mr Richard D Greaves, CPA Mr James R Ladd, CPA, CGMA Ms Kristine L Lambright, CPA Mr William A Simer, CPA Ms Susan L Thomson-Sines, CPA

Leaders Circle ($250-$499)

Mr Ryan Thomas Bartlett, CPA Becker Professional Review Mr Justin A Bourn, CPA Ms Jolene G Cox, CPA Mr Thomas G Donaghy, CPA Mr Dean A Granholm, CPA,CGMA Ms Michelle Hartley Gretsch, CPA Mr Christopher William Hesse, CPA Mr Mark Alan Hugh, CPA Mr Marc S Hutchinson, CPA JW Data LLC Mr Glenn M Light Ms Mary Dowling Marino, CPA, CGMA, MBA Mr David J Miniken, CPA, CGMA, MBA Mr Joseph Paul Smith, CPA Thomson & Company PLLC Mr Edward C Wartelle Mr William Lloyd Wells Mr Hayden B Williams, CPA, CGMA Mr Glenn G Wisegarver, CPA, CGMA

www.wscpa.org

Senior Contributors ($100$249)

Ms Erica Marie Ash, CPA, MBA Mr Robert W Ash Ms Adele Brady Bolson, CPA Mr Sesinando N Cantor, CPA, CGMA, MBA Mr Robert M Cole, Jr, CPA, CGMA, MA Ms Bonnie Lynn Curran, CPA Dixon Golf Inc Mr Alan L Erlenbush, CPA Mr Robert L Gerth Mr Charles E Hallett, IV, CPA,CGMA Mr Edwin G Jolicoeur, CPA Mr Gregg D Jordshaugen, CPA Mr Michael J Kander, CPA,CIA Mr John P Marvin Ms Sandra J Moss, CPA Dr Gerhard G Mueller, PhD Mr Daniel B Myers-Power, CPA Ms Sharon Kay Philpott Mr Andrew L Read, CPA Mr Robert A Underhill, CPA,JD

Supporting Contributors (<$99)

Mr Michael R Ammerman, CPA Ms Robin Amundson, CPA, EA Ms Alex T Anderson, CPA Mr Gordon P Asheim, CPA Mr Donald F Aubrey, CPA Mr Bill Bailey, CPA Mr John P Baker, CPA Mr Tyler John Baldwin, CPA Ms Cathi Lyn Barta, CPA Mr Ronald James Bassage, CPA Mr Marc G Bateman, CPA Mr David George Bembridge, CPA Mr Robert Charles Best, CPA, JD Mr Bruce E Bixler Mr Gregg Blodgett Mr Sidney H Boles, CPA Mr Wayne R Borkowski, MBA Mr Robert Joseph Bowls, CPA Ms Megan Yeung Brady, CPA Mr Paul W Brandstetter, CPA Mr Rustin Porter Brewer, CPA Mr Brian Richard Bronk, CPA Mr David A Brown Ms Christine B Brunner, CPA Mr Bruce P Budge, CPA Ms Deanne Marie Butler, CPA, CGMA Ms Yasmin Lyn Caldwell, CPA Ms Linda M Canney Ms Maria T Carrion-Ochoa, CPA, CGMA Mr Edward T Carson, CPA Ms Rebecca A Cates, CPA Ms Suzanne C Chaille, CPA Ms Robin A Clark, CPA

www.wscpa.org

Mr Roger F Clark, CPA Mr R Douglas Collier, CPA Mr Craig S Connell, CPA Ms Elizabeth F Copstead, CPA Mr Jeffrey M Cordova, CPA Mr Gordon Robert Craig, CPA,CFE,CIA,CISA Mr Jay F Cramer Mr Michael R Cross, CPA Mr John E Currie Ms Jacqueline D Davis, CPA Mr Joseph P Deacon, CPA Ms Brenda L Dean, CPA,CIA Mr Matthew Ervin DesVoigne, CPA Ms Billie Devore, CPA Mr David L Dierst, CPA Ms Eva M Wagner Donahoo, CPA Mr Thomas N Durrett, CPA Mr Thomas Jefferson Eby, MBA Mr Robert J Erickson, CPA, JD Mr Randy A Farrell, CPA Ms Joan Catherine Faubion, CPA Mr Leon F Ficker, CPA Mr Daniel W Fisher, CGMA Mr Joseph R Forde, CPA Mr Rick R Foster, CPA Mr Norman H Frey Mr John W Friends, CPA, MBA Mr James H Gall, CPA, MBA Mr Steven C Garber, CPA Mr Chris A Gates, CPA, CGMA, CITP Ms Pamela S Geiger Mr Bert R Golla, CPA Mr Brian G Gosline, CPA,JD Ms Bonnie Louise Green, CPA Ms Linda Marie Greenly, MBA 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 Mr Michael D Haveman, CPA Ms Cecile E Haw Ms Alicia Marie Heggerness, CPA Ms M Suzanne Heidema, CPA Ms Teresa A Herrin, CPA Mr William D Hood, CPA Mr Stephen J Hopps, CPA Mr Loren D Hostek, CPA Mr Michael James Howisey, CPA Mr Paul V Hughes, CGMA, MBA Mr Charles D Huibregtse, CPA Mr Michael K Hutchinson, CPA Mr Hitoshi Inoue, CPA Ms Cindy L Isaacson, CPA Mr Gregory Alan Jackson, CPA, MSTax, CVA Mr Ernest R Johnson Mr Kraig Andrew Jones, CPA Mr Waylon P Jones, CPA, CGMA, CFE Mr Luther D Jonson, CPA

Ms Deborah J Juntunen, CPA Mr Arthur Y Kageyama Mr Osamu Kasuya Mr Raad T Kattula, CPA Ms Marinilka Barros Kimbro, PhD Ms Kristin L Knopf, CPA, CGMA, MBA, MPAcc Mr James Duncan Koran Mr Karl J Korsmo Mr Glenn E Kosai Ms Vildana Kunduklija, CPA Mr Stroud W Kunkle, CPA Mr Frank J Kuntz, CPA,PS Ms Irene R Laible, CPA Mr Antonio M Laliberte, JD Ms Nancy M Lalic, CPA, CFE, CGM, CITP Ms Carol M LaMotte, CPA Mr Clayton David Linnell Ms Luellen H Lockwood, CPA, MBA, EA Ms Deborah Michelle Loober, CPA Mr John S Macdonald, CPA Mr Michael J Mansfield, CPA Ms Carrie A Martin, CPA Ms Connie M Martin, CPA Ms Elizabeth Deak Masnari, CPA, CISA Mr Gregory Allen Matty, CPA Mr Jeffrey P Maxwell, CPA, JD Ms Lillian L McDonell, CPA, MBA Mr James W McKean, CPA Mr Robert Paul McKinley, CPA Mr Tim McNees Mr Michael D Meeks, CPA,MSTax Mr Arthur D Miles, CPA Mr Louis H Mills, CPA Mr Ki Chul Min, CPA Mr Donald W Mitchell Ms Beatrice Mitman, CPA Ms Patricia G Molnar, CPA Mr Ryan L Munn, CPA Ms Alisa S Na, CPA Ms Stephanie Maria Neis, CPA, MBA Ms Kristine T Nelson, CPA, MPAcc Mr Todd G Nelson Mr Thomas P Nicholas, CPA Ms Aldryth Neilson O’Hara, CPA Mr Terence V O’Keefe Ms Emily Ann Olson, CPA Ms Susan F O’Neill, CPA Mr Benjamin James Page, JD Mr Richard N Pahre Mr Stephen Patterson, CPA Mr Michael S Peasley, CGMA, MSTax Mr Ronald J Perkins, CPA Ms Hwan Ja Choi Perreault, CPA Ms Jacqueline M Perriella, CPA Mr Jack B Person, CPA Mr Scott Thomas Petersen, CPA Ms Trisha Peterson Ms Christina A Polf, CPA Mr Robert J Rebar, CPA, CGMA

Mr Bill Reed, CPA Mr Lonnie Lee Rich, CPA, CFE, FCPA Ms Penny Faye Ridderbusch, CPA Mr Christopher J Rieke Mr James J Rigos, CPA, JD, LLM, CMA Ms Rachel M Robert, CPA Ms Lauri Dee Roberts, CPA Mr Donald L Rodman, CPA, MBA Mr Harvey J Rothschild, III, CPA, MBA Mr Robert W Rubel, CPA Mr James Lee Russell, CPA Ms Claire E Sadlier, CPA Ms Susan J Sanders, CPA Mr John P Sandstrom Mr Thomas P Sawatzki, CPA Ms Suzanne M Schiffler, CPA Mr Jeffery S Schilling, CPA Mr Morgan L Schulte, CPA, CMA Mr Martin F Seiler, CPA Sally Sheck Mr Jay T Shilhanek, CPA Ms Janis Harkins Simpson, CPA Ms Orphalee Smith, CPA, PFS Mr Russell Joseph Smith, CPA Mr Terry D Sodders, CPA Ms Cathy L St John, CPA Mr William M Stanke Mr Eric J Stepper Mr Donald W Stetson, CPA Mr Chris W Strand, CPA, MSTax, PFS Ms Linda M Teachout, CPA Mr Lenin Thomas, CPA Mr David E Thompson, CPA, ABV, CVA Mr Harold G Thompson, Jr, CPA Mr Mark E Ulloa, CPA Mr John M Urrutia, CPA, MSTax Mr Jeffrey M Van Burkleo, MSTax Ms Susanne Wendy Vickerman, CPA, MSTax Mr Richard A Volk, CPA Mr Franz Von Bradsky, MBA Ms Judith L Waddell, CPA Ms Carol L Wagar, CPA Mr Robert W Wales Ms Catherine B Wandell, CPA Ms Eva M Weisenburger, CPA Ms Elizabeth Jenkins Widdison Ms Shari A Wood-Richardson, CPA Mr Justin K Yamamoto, CPA Mr Josh Yeyni, CPA, PS Mr Stephen J Zevenbergen, CPA Ms Danielle Renee Zlatich, CPA

WashingtonCPA Spring 2016

CPAPAC Contributors www.wscpa.org/cpapac

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. The last two legislative sessions—with three advocacy bills drafted, passed and signed—have been incredibly busy for the WSCPA advocacy team.

2015-2016 Advocacy Victories

Bills Drafted, Passed, and Signed

CPAs Exempt from PI Statute nse P.I. Lice

Governor Jay Inslee signed House Bill No. 1263, which exempts CPAs from the private investigators’ statute. The bill became a law on July 24, 2015.

New Scholarship Fund Created Substitute Senate Bill No. 5534, signed into law by the Governor on May 8, 2015, created a $3 million scholarship fund for accounting students to be administered by Washington CPA Foundation.

$3 million

Definition of Attest Updated and Firm Mobility Allowed Engrossed Substitute House Bill 2433, signed into law by the Governor on March 31, 2016, provided firm mobility across Washington State lines and brought the definition of attest in Washington State into closer conformity with the Uniform Accountancy Act.

Advocacy doesn’t cost. It pays.

WashingtonCPA Spring 2016

Firms

Bader Martin PS Berntson Porter & Company PLLC CliftonLarsonAllen LLP Deloitte LLP (Seattle) EY (Seattle) Hellam Varon & Co Inc PS PwC (Seattle) Sweeney Conrad PS Ms Carmen J Aguiar, CPA, PFS, CFP Mr Andrew J Amrine, CPA Ms Alex T Anderson, CPA Mr Gordon P Asheim, CPA Mr Paul M Bailey, CPA Mr Tyler John Baldwin, CPA Ms Cathi Lyn Barta, CPA Mr Ryan Thomas Bartlett, CPA Mr Marc G Bateman, CPA Mr David George Bembridge, CPA Marcia K Bennison, CPA Ms Janice K Berg, CPA Mr Robert Charles Best, CPA, JD Mr Steven B Bishop, CPA, CFF, CVA Mr Jeffrey J Bogdanovich, CPA, PFS Ms Pat L Bohan, CPA, CGMA, CGFM Ms Adele Brady Bolson, CPA Mr Brady William Borel Mr Kevin L Bouchillon, CPA Mr Justin A Bourn, CPA Mr Paul W Brandstetter, CPA Mr Rustin Porter Brewer, CPA Mr David A Brown Ms Christine B Brunner, CPA Mr Bruce P Budge, CPA Ms Linda M Canney Mr Sesinando N Cantor, CPA,CGMA,MBA Mr Christopher Myron Carlson, CPA,CCIFP Ms Rebecca A Cates, CPA Mr John J Clements, CPA Mr Robert M Cole, Jr, CPA, CGMA, MA Mr Craig S Connell, CPA Ms Jolene G Cox, CPA Mr Gordon Robert Craig, CPA, CFE, CIA, CISA Mr Jay F Cramer Mr Michael R Cross, CPA Ms Vicky M Dalton, CPA, CGFM Mr Stephen G Dashiell, CPA Mr Chris Davies, CPA, CMA Ms Jacqueline D Davis, CPA Mr Joseph P Deacon, CPA Ms Brenda L Dean, CPA, CIA Ms Kyla Jean Delgado, CPA Ms Billie Devore, CPA

www.wscpa.org

Ms Mary E Dickinson, CPA Mr Thomas G Donaghy, CPA Ms Kirsten Simpson Duke, CPA, CGMA Mr Scott C Eastham, CPA Mr Scott E Eschbach, CPA Ms Joan Catherine Faubion, CPA Mr Leon F Ficker, CPA Mr John T Fisher, CPA, CGFM Mr Joseph R Forde, CPA Mr Rick R Foster, CPA Mr Daniel Frein, CPA Mr Rodney K Fujita, CPA Mr James H Gall, CPA,MBA Mr Steven C Garber, CPA Mr Arvid B Garnaas, CPA Mr Chris A Gates, CPA, CGMA, CITP Ms Eleanor Ewing Gittelman, CPA Ms Michele Louise Godvin, CPA Mr Dennis B Goldstein, CPA Mr Bert R Golla, CPA Mr Brian G Gosline, CPA, JD Mr Rick H Graham, CPA Mr William J Graham, CPA Mr Dean A Granholm, CPA, CGMA Mr Alan L Gray, CPA Mr Richard D Greaves, CPA Ms Bonnie Louise Green, CPA Mr Mark A Greenfield, CPA, CGMA Mr Gerald Greer, CPA Ms Suzanne Rae Greer Mr Vaughn S Hagen, CPA Mr Mark T Hanson, CPA Mr Michael P Hart, CPA, MPAc Mr Michael D Haveman, CPA Ms Cecile E Haw Ms M Suzanne Heidema, CPA Mr Christopher William Hesse, CPA Mr Matthew D Hobbs, CPA Mr William D Hood, CPA Mr Stephen J Hopps, CPA Mr Loren D Hostek, CPA Mr Michael James Howisey, CPA Mr Mark Alan Hugh, CPA Mr Christopher J Hugo, CPA, MS Mr Marc S Hutchinson, CPA Mr Michael K Hutchinson, CPA Mr Hitoshi Inoue, CPA Mr Thomas M Jeannet, CPA Ms Nancy A Jones, CPA Mr Richard Edward Jones, CPA, CGMA Mr Waylon P Jones, CPA, CGMA, CFE Mr Arthur Y Kageyama Mr Osamu Kasuya Mr James W Keyes, CPA Ms Marinilka Barros Kimbro, PhD

www.wscpa.org

Mr Karl J Korsmo Manfred Krawietz Mr Stroud W Kunkle, CPA Mr Frank J Kuntz, CPA,PS Mr James R Ladd, CPA, CGMA Ms Irene R Laible, CPA Ms Nancy M Lalic, CPA, CFE, CGM, CITP Ms Kristine L Lambright, CPA Mr Jeff E Leary, CPA,CFP Mr Robert B Loe, CPA, MBA, CFE Mr Mark Tipton Long, CPA, MSTax Ms Deborah Michelle Loober, CPA Mr John F Lynch, CPA Mr Peter S Margitan, CPA Ms Mary Dowling Marino, CPA, CGMA, MBA Ms Elizabeth Deak Masnari, CPA, CISA 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 Ki Chul Min, CPA Mr David J Miniken, CPA, CGMA, MBA Mr Donald W Mitchell Mr Robert Lawrence Moline, CPA Mr Mark J Morrissette, CPA Mr Matthew Scott Moser, CPA, MSTax, PFS Mr Gary E Mueller, CPA Mr Scott Douglas Murphy, CPA Ms Alisa S Na, CPA Mr Kenshi Nagayoshi, CPA Mr Eiichi Naka, CPA Mr David S Nelson, CPA, CTRS Mr Thomas P Nicholas, CPA Mr Robert M Nicklos, CPA Mr Daniel McGrath Niles, CPA Mr Terence V O’Keefe Ms Susan F O’Neill, CPA Mr Douglas M Oord, CPA Ms Joanne Lynn Ort, CPA, MPAcc Mr Richard N Pahre Mr Stephen Patterson, CPA Mr Jack B Person, CPA Mr Scott Thomas Petersen, CPA Patrick Whitney Pugh Mr Robert J Rebar, CPA, CGMA Ms Margo Reich, CPA Mr Christopher J Rieke Mr James J Rigos, CPA, JD, LLM, CMA Ms Lauri Dee Roberts, CPA Mr Donald L Rodman, CPA, MBA Mr Robert W Rubel, CPA Mr James Lee Russell, CPA Mr Craig S Ruthford, CPA Ms Susan J Sanders, CPA

Mr John P Sandstrom Mr Thomas P Sawatzki, CPA Mr Jeffery S Schilling, CPA Mr Daniel J Schroeder, CPA Mr Christopher C Seel, CPA Sally Sheck Mr Jay T Shilhanek, CPA Mr Ralph Siegel, CPA Mr William A Simer, CPA Mr William A Simer, CPA Ms Tina Loraine Skidmore, CPA Mr Jeremy Lee Skogsbergh, CPA Mr Joseph Paul Smith, CPA Ms Orphalee Smith, CPA,PFS Mr Stephen Sommerville, CPA, CA Mr Douglas D Springer, CPA, PFS Mr Sidney J Starr, CPA, CFF, DABFA Mr Donald W Stetson, CPA Mr David A Stiefel, CPA,PFS Mr David E Thompson, CPA, ABV, CVA Mr Harold G Thompson, Jr, CPA Mr Terry M Thompson, CPA Ms Susan L Thomson-Sines, CPA Mr Mark E Ulloa, CPA Mr Robert A Underhill, CPA, JD Mr John M Urrutia, CPA, MSTax Mr Scott F Usher, CPA, MSTax Mr Jeffrey M Van Burkleo, MSTax Ms Susanne Wendy Vickerman, CPA, MSTax Mr Richard A Volk, CPA Ms Carol L Wagar, CPA Ms Dorothy R Wagsholm, CPA Mr Robert W Wales Mr William Lloyd Wells Kenneth Williams Ms Azucena A Wingard Mr Glenn G Wisegarver, CPA, CGMA Ms Carol Ann Woo, CPA Ms Shari A Wood-Richardson, CPA Ms Cheryl K Woods, CPA, CGMA Mr Josh Yeyni, CPA, PS Mr Stephen J Zevenbergen, CPA Mr Jianyou Zhou, CPA Ms Xue Zhou

Learn more about the Foundation and CPAPAC at www.wscpa.org.

Contributions may be made at any time during the year, or when you renew your Society membership every spring.

WashingtonCPA Spring 2016

CGMA EXAM

The CGMA Exam By Neil Amato

he Chartered Global Management Accountant (CGMA) exam is a scenario-based test of management accounting competencies. The exam is a requirement for the CGMA designation among members of the Chartered Institute of Management Accountants (CIMA) and AICPA members who intend to obtain the designation. The competencies at issue have been adapted from conversations with employers around the world about what they expect from their finance staff. The competencies include, but are not limited to, traditional accounting and finance skills; they are designed to make certain that finance professionals also possess business, leadership, and people skills. The exam tests the areas of strategic and risk management and financial strategy highlighted in the CIMA Professional Qualification Syllabus (available at tinyurl.com/oxx5nnh), which was updated in 2014 to reflect the changing role of today’s finance professional. The syllabus includes topics such as managing Big Data, narrative reporting, sustainability, and finance function transformation. Here are questions and answers to provide further insight into the exam. More exam resources are available at cgma.org.

respond to a handful of scenarios based Q. How does it differ from the on one comprehensive business case. CPA exam? A. The biggest difference between the Q. What are the eligibility Q. Tell me about the exam two is that the CGMA exam is one inte- requirements? A. Case study examinations combine grated, overarching case, said Josh Stopek, A. Any regular AICPA member is eligiknowledge and learning across multiple subjects. The CGMA exam is a strategic case study that asks candidates to provide strategic analysis of options leading to recommendations, an associated risk analysis, and formulation of a financial strategy. The format tests competencies in a way that takes advantage of improvements in technology and reflects changes in the workplace. The approach allows for testing of a wide range of knowledge, and skills including research and analysis, how to present information, and communication.

WashingtonCPA Spring 2016

senior technical manager–Research at the AICPA.The CPA exam has objectively scored item formats such as multiple choice questions and short cases called task-based simulations that more directly test topics such as understanding price elasticity or the candidate’s ability to calculate long-term growth based on an interest rate. The CGMA exam requires candidates to incorporate that knowledge into long-form, written answers. The CPA exam is composed of multiple parts, with hundreds of questions; the CGMA exam asks the candidate to analyze and

ble to take the exam, but the candidate must meet an experience requirement to become a CGMA designation holder. Members are likely to perform better on the exam with some experience, but they do not need to meet an experience requirement to take the exam. (Editor’s Note: In October 2015, the Board and Council of the AICPA approved opening the CGMA exam to non-CPA professionals in the U.S.)

Q. Is the exam computer-based? Do you go to a testing site? www.wscpa.org

CGMA EXAM

A. Upon registration, members will then choose an exam site. Candidates must take the computerized exam at the site. The exam is administered by Pearson VUE, which has more than 5,100 test centers, including more than 2,000 in the United States. Q. What is the format of the exam? A. The exam is based on real-world case

studies, requiring users to answer openended questions using the competencies described above. Candidates are given a data set and industry information about a hypothetical organization several weeks in advance of the exam (example: a toy company with operations in the United States and four other countries). No outside materials, such as printed pages or notes, are allowed in the testing center. During the exam, participants will have computer access to the same data they received in advance. During the three-hour exam, candidates will be asked three to six questions regarding the business case. The questions may bring forth new information or change the scenario to which the exam taker must adapt his or her answer. Each question must be answered in the allotted time, which is shown on the screen.

Foundations for the Exam

The CGMA exam is based on the CIMA Professional Qualification Syllabus. The purpose of the syllabus and exam is to produce competent management accounting professionals who can lead their organizations to sustainable business success. The CGMA exam covers the subjects of strategic management, risk management, and financial strategy, all of which fall under the strategic level www.wscpa.org

Q. What constitutes a good answer? Q. What is a passing grade? How do test takers earn points? A. A specific passing grade has not yet been established. This is subjective. A strong response A.

demonstrates mastery of each of the four competencies: core accounting skills, business skills, leadership, and people skills. A successful candidate must demonstrate: • • • •

•

Ability to effectively communicate to different groups of primary stakeholders. Ability to research and synthesize large amounts of data efficiently. Ability to make decisions and give recommendations at a strategic level. Ability to generate insight from business data, giving appropriate consideration to risks and financial aspects. Understanding of complex, global business situations.

Q. How is the exam scored?

Q. If candidates do not pass the exam, can they take it again? A. Yes, but only once per testing window. If needed, candidates could take the test four times per year, once in each quarter.

Q. Are passing candidates retested? A. Passing candidates don’t have to retake

the exam. To maintain the designation, dues and continuing professional education required by the AICPA membership policy must be kept up to date.

Q. How do members register for the exam? A. Members can complete a form online

or call the AICPA member service center at 888-777-7077 to set up exam registration.Visit cgma.org/exam for information. Neil Amato is a Journal of Accountancy

A. It is peer-reviewed,scored anonymously (jofA) senior editor. Contact him at namato@ by management accounting experts. Results are to be released to test takers within three weeks of taking the exam.

aicpa.org or 919-402-2187.

of the syllabus. The foundation for the syllabus is the CGMA Competency Framework. The framework, released in April, defines the skills and competencies that finance professionals need to drive business success. The framework was developed through a three-phase research process by CIMA and the AICPA that included face-to-face interviews, round-table meetings, and online surveys with middle- to upper-

level staff at public and private companies around the world. The organizations provided insight from their corporate competency frameworks, allowing the creation of a general framework for finance professionals. The framework is based on what the organizations expect from their finance staff: technical skills, business skills, people skills, and leadership skills. The framework served as the WashingtonCPA Spring 2016

CGMA EXAM

foundation for the syllabus and exam and as a way for employers to benchmark finance competencies. “It will not only help management accountants in their current and future roles, but also help employers as they craft a job description or help academics develop a curriculum,” said Nancy Marc-Thrasybule, CPA, CGMA, technical manager–Management Accounting at the AICPA. The syllabus has three levels: •

•

Operational. Implementation of strategy and reporting on that implementation. The operational level has a short-term focus. Management. The focus here is translating high-level strategy and communicating it to lower levels for implementation. The management level monitors the implementation of strategy and ensures corrective action is taken when required. This level has a medium-term focus. Strategic. The focus of this level is on making strategic decisions and providing context for why those decisions would be implemented. The strategic level has a long-term focus.

The framework covers four levels of proficiency—foundational, intermediate, advanced, and expert—and four knowledge areas. Here is a breakdown of the knowledge areas and selected competencies: •

Technical skills. Collecting, storing, and processing information to be shared with other stakeholders. Task examples include financial accounting and reporting; cost accounting; treasury management; and tax strategy, planning, and compliance.

WashingtonCPA Spring 2016

•

Business skills. Using knowledge of the organization and the organization’s business environment to turn data into insight. Task examples include strategy, process and project management, and macroeconomic analysis. People skills. Used to influence decisions, actions, and behaviors of decision-makers and other stakeholders. Task examples include negotiating, decision-making, and collaborating or partnering. Leadership skills. These skills come in three types— peer, functional, and strategic. Task examples include team building, managing change, and driving performance.

As individuals advance in proficiency level, the weighting of each skill changes. For example, those on the foundational level are not expected to devote much time to leadership skills. Those on the advanced level have the most even mix of all four skills. At the expert level, leadership is the most heavily weighted skill, and less attention is placed on technical skills. Round-table participants said that the competencies should be integrated (see Exhibit 1) and also underpinned by ethics, integrity, and professionalism. This article first appeared in the June 2014 issue of Journal of Accountancy and was reprinted with permission. For more CGMA articles, sign up for the weekly email update from CGMA Magazine at http://bit. ly/UZ07NC.

www.wscpa.org

MERGERS AND ACQUISITIONS

Five Factors for the Successful Buyer By Ira S. Rosenbloom, CPA

he number of firms in merger and acquisition (M&A) conversations is growing at an accelerated pace with no signs of slowing. In fact, the AICPA predicts that in less than 10 years, 75 percent of all current accounting firm partners will be retired. Succession planning and the quest for market share growth are two of several factors that are fueling the M&A momentum.Those interested in being a successor may see more overall competition than imagined, and more of an analytical type of competition as well. Here are five critical factors to best position your company as the champion suitor.

Clarity of Vision

Defining what the combined firm will be and what it will look like is essential to guiding the process, much like the rendering for a construction project. The more operational details that you include and the more compelling picture that you paint, the better chance you’ll have of getting the deal. Focus on the company brand, its deliverables, pricing, market presence, human resources, scheduling, work flow, billing and collections, service modules, and client-retention methods. As the buyer, you need to do some critical long-term planning before even stepping up to the negotiating table. Some of the most important components for you to consider include your client base, fee structure, employees, and the number of billable hours that you’ll need to execute your company’s vision. Do not underestimate the importance of your own office culture when contemplating a merger.What’s the ideal size and scope of your firm, and how would an acquisition fit into this goal? All of these factors should be integrated into your business plan. Once you have developed a roadmap for longevity, you can begin to determine which type of sellers fit into this vision. www.wscpa.org

Company Strategy and Motivation

Establishing prioritized goals and being disciplined about them is significant. The more closely aligned your goals are with the seller’s, the better potential you have for a successful deal. Common priorities for a buyer would be increasing talent, creating or intensifying a niche, marketplace positioning, enhancing profitability, offering new services, improving client demographics, and strengthening appeal to potential new hires. Focus on the details of what you’re trying to achieve and how a particular acquisition might fulfill that. For example, if your firm already has a good reputation for servicing a particular sector and you want to continue growth in that area or expand into a parallel sector, then it makes sense to target practices that would accomplish that. Another strategy might be taking your firm’s established knowledge base and expanding it into a specific geography to help you sustain long-term growth. The more excited the seller is with your strategy the better the odds for a deal.

Attitude

If yours is a multipartner firm, being united in your goals and interests is vital. Without that unity, it will likely take longer to close a deal, if at all.A seller may even downgrade your firm as an option or raise the ante to finalize the transaction. In many cases, attitude will lead to concessions that otherwise would not be possible. Consistent focus on, and communication of, the deal’s benefits will help intensify interest and keep the partners on the same page. Differences in succession planning goals, or lack thereof, can kill a possible sale before it even gets to the negotiating stage. Each partner in the firm will likely have his own succession plan and timing, so it’s best to understand what those are at the onset. When a sole practitioner is the buyer, confidence and humility are essential. Learning and gaining expertise go a long way in motivating a seller when negotiating with a solo practitioner. Staging the deal, or allowing for phases that build toward an agreed end date/full merger or WashingtonCPA Spring 2016

MERGERS AND ACQUISITIONS

sale, may carry clout as well.

Capacity for Expansion

Sellers want to know that their successors have the skills and personnel to both handle their clients and protect their staff. It is critical to carefully evaluate your firm’s staffing capacity and how it will handle the potential new workload. Experience has shown that when merging accounting firms have transitioned effectively, an overwhelming majority of acquired clients, typically 90 percent, remain with the new practice. That will be a significant increase in client accounts, so if your firm is already at capacity this could be overwhelming. Think seriously about your own firm’s current capacity to manage that and how your staffing may need to change to fulfill it. If your staff already has a full workload, splitting the new client accounts amongst existing staff is probably unrealistic. Unemployment is currently very low in the accounting field, so be prepared for the amount of time it will take to recruit the right employees.

Comfort with Compromise

The best buyers recognize that onesided deals are unlikely to prevail. Furthermore, deals that require too much compromise are just as unlikely. Buyers need to know what their “line in the

WashingtonCPA Spring 2016

Of course, price and purchasing terms are always important factors that impact a final sale, but rarely do these two elements derail a merger. Differences in company culture, long-term goals, and partner succession are more likely to be deal-breakers.

sand” issues are, prioritizing their most important items and making adjustments on less important issues. When working through a compromise, conversation is critical both internally and externally. The more that issues are discussed and not merely dismissed – clarified and not argued – the greater the propensity for a successful outcome. If you can’t reach a compromise in a reasonable amount of time, try moving on to a different issue or bringing in an outside mediator. In most transactions, it is assumed that a certain level of negotiation and compromise will take place, especially once the larger pieces are in place. A smart buyer

will keep the long-term vision at the forefront of the M&A negotiation and not get sidetracked by short-term factors that may look good on paper but won’t help fulfill that vision. Of course, price and purchasing terms are always important factors that impact a final sale, but rarely do these two elements derail a merger. Differences in company culture, long-term goals, and partner succession are more likely to be deal-breakers. Savvy buyers will treat M&A like a line of business, and they will analyze every factor that could affect the success of their practice. Time spent exercising due diligence now and incorporating that analysis into the business plan will best prepare buyers for making the most advantageous match possible. Ira S. Rosenbloom, CPA, is chief operating executive at Optimum Strategies LLC in Spring House, Pennsylvania. He can be reached at ira@optimumstrategies.com. Reprinted with permission from the Pennsylvania CPA Journal, a publication of the Pennsylvania Institute of Certified Public Accountants.

www.wscpa.org

Get involved in

YOUR LOCAL CHAPTER www.wscpa.org/chapters Date

CPE

Event

Code

Location

Bellevue Area Chapter May 19

Bellevue

State and Local Tax Update, 7:30 am-9:30 am

16CHBVMY19

Bellingham Area Chapter May 2

Mt Vernon

Employment Law Update, 5:00 pm

16CHBLMY02

Everett Area Chapter May 5

May 10

1.5

Maggiano’s - Lincoln Square Max Dale’s Restaurant Lynnwood/Everett

Networking Event at Brunswick Majestic Lanes, 6:30 pm-8:30 pm

16CHEVMY05

Brunswick Zone Majestic Bowl, Lynnwood

Professional Update - Everett, 7:30 am-9:30 am

16CHEVMY10

Holiday Inn Everett

Olympia Area Chapter

Olympia

Apr 20

What’s Next for the City of Olympia? 12:00 pm-2:00 pm

16CHOLAP06

Indian Summer Golf

May 4

WSBOA & WSCPA Update, 12:00 pm-2:00 pm

16CHOLMY04

Indian Summer Golf

June 1

Hiring, Firing, and Death: Retention and Succession Planning, 12:00 pm-2:00 pm

17CHOLJN01

Indian Summer Golf

Seattle Area Chapter May 11

1.5

Seattle

Professional Update - Seattle, 3:00 pm-6:00 pm

16CHSEMY11

Spokane Area Chapter May 11

1.5

May 26

Spokane

Professional Update - Spokane, 3:30 pm-6:00 pm

16CHSPMY11

DoubleTree Hotel Spokane City Center

Spokane Chapter 17th Annual Golf Tournament, 1:15 pm-

16GOLFMY26

Circling Raven Golf Club, Worley

Tacoma Area Chapter Apr 20

Federal Way

State Nexus: It’s Worse Than You Think! Washington State Tax Update, 7:30 am-9:30 am

16CMSSIAP

Tri-Cities Area Chapter May 9

Ruth’s Chris Steakhouse

Courtyard by Marriott Kennewick

State and Local Tax Update, 12pm-1pm

16CHTCMY09

Country Gentleman Restaurant

NETWORKING EVENTS www.wscpa.org/events

Date

CPE

Event

Code

Location

May 5

Networking Event at Brunswick Majestic Lanes, 6:30 pm-8:30 pm

16CHEVMY05

Brunswick Zone Majestic Bowl, Lynnwood

May 26

Spokane Chapter 17th Annual Golf Tournament, 1:15 pm-

16GOLFMY26

Circling Raven Golf Club, Worley

June 9

1.5

WSCPA Annual Meeting 2016, 3pm-6pm

17AM

Bell Harbor International Conference Center, Seattle

June 13

2016 Golf Tournament, 1pm-

17GOLFJN13

Bear Creek Country Club, Woodinville

www.wscpa.org

WashingtonCPA Spring 2016

PHOTO ALBUM

2016 Golf Tournaments MONDAY, JUNE 13 Bear Creek Country Club, Woodinville, WA www.wscpa.org/golf Sponsors: Tournament Sponsor

Lunch Sponsor

Drink Sponsor

THURSDAY, MAY 26 Circling Raven Golf Club, Worley, ID www.wscpa.org/spokanegolf Circling Raven Golf Club

WashingtonCPA Spring 2016

www.wscpa.org

CPE Digest Frazzled Florence, CPA

Stress?! I donâ&#x20AC;&#x2122;t let stress affect me. I just need a little break ... a month on the French Riviera and Iâ&#x20AC;&#x2122;ll be just fine.

Feeling a little frazzled lately? Find out how to halve your stress, triple your memory, and boost your productivity with renowned author and speaker, Jonathan Robinson. May 9 Triple Your Memory, Prevent Dementia, and Halve Your Stress May 10 Getting on Top of It All: The New Science for Increasing Productivity in Yourself and Others

Bellevue | Webcast Bellevue

WashingtonCPA Spring 2016

EDUCATION AND EVENTS Date

CPE Credits

Course

Code

Type

EVENTS BY LOCATION WSCPA education and events scheduled for April - May 2016 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. LEARN MORE To view complete course details, please visit the CPE & Event Catalog at www.wscpa.org/cpe/catalog.

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

Code

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

Type

WSCPA NonAICPA Member Member Member Discount Fee Fee

Subject

Facility

Subject

Bellevue 4/19

4/20

4/21

Lean Accounting: Higher Profits by Streamlining Operations, 8am-4pm

16LAMAAP

295

395

-30

WSCPA

A&A

Webcast also available

16WWLAMAAP

285

385

-30

Webcast

A&A

Annual Update for Controllers, 8am-4pm

16SKSBAP

295

395

-30

WSCPA

Webcast also available

16WWSKSBAP

285

385

-30

Webcast

QuickBooks for Accountants, 8am-4pm

16QBPAP21

295

395

WSCPA

TEC

Webcast also available

16WWQBPAP

285

385

Webcast

TEC

4/22

Excel Tips, Tricks and Techniques for Accountants, 8am-4pm

16EXLAP22

295

395

WSCPA

TEC

4/25

The 8-Hour MBA:Value Added, 8am-4pm

168MBAVAP

295

395

WSCPA

4/26

The 8-Hour MBA: Business Strategy, 8am-4pm

168MBABAP

295

395

WSCPA

4/28

The New Controllership: Keys to Boosting Corporate Performance, 8am-4pm

16CCOFAP

295

395

-30

WSCPA

Webcast also available

16WWCCOFAP

285

385

-30

Webcast

Advanced Business Law for CPAs, 8am-4pm

16ABLTAP

295

395

-30

WSCPA

Webcast also available

16WWABLTAP

285

385

-30

Webcast

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

16TKBPMY02

295

395

-30

WSCPA

Webcast also available

16WWTKBPMY

285

385

-30

Webcast

Governance-Enhancing Risk Management: Setting the Right Balance Innovation and Controls!, 8am-4pm

16SRMMY03

295

395

WSCPA

Webcast also available

16WWSRMMY

285

385

Webcast

Triple Your Memory, Prevent Dementia, and Halve Your Stress, 8am-4pm

16TYMCMY09

295

395

WSCPA

Webcast also available

16WWTYMCMY

285

385

Webcast

Identity Theft and Tax Practice Information Security, 8am-4pm

16ITISMY10

300

400

WSCPA

TAX

Webcast also available

16WWITISMY

290

390

Webcast

TAX

4/29 5/2

5/3

5/9

5/10

Getting on Top of It All: The New Science for Increasing Productivity in Yourself and Others, 8am-4pm

16GOTMY10

295

395

WSCPA

5/11

Fringe Benefits, 8am-4pm

16FBMY11

300

400

WSCPA

TAX

Webcast also available

16WWFBMY

290

390

Webcast

TAX

Conversation Strategies That Get Results, 8am-4pm

16CSTGMY13

285

385

WSCPA

Webcast also available

16WWCSTGM

285

385

Webcast

Combating Fraud: Turning Vulnerability to Victory Every Day, 8am-4pm

16CFVVMY

310

410

WSCPA

A&A

5/12

5/16

ç New |  Non-tech credits |

WashingtonCPA Spring 2016

Networking event

www.wscpa.org

Course

CPE Credits

# 5/16

EDUCATION AND EVENTS Code

WSCPA NonAICPA Member Member Member Discount Fee Fee

Facility

Subject

Type

The Top 50 Mistakes Practitioners Make and How to Fix Them: Individual Tax and Financial Planning, 8am-4pm

16INBBMY19

310

410

WSCPA

TAX

Webcast also available

16WWINBBMY

300

400

Webcast

TAX

5/17

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

16TCFOMY

310

410

WSCPA

5/17

Surgent’s Handbook for Mastering Basis, Distributions, and Loss Limitation Issues for S Corporations, LLCs, and Partnerships, 8am-4pm

16HMBIMY20

310

410

WSCPA

TAX

Webcast also available

16WWHMBIMY

300

400

Webcast

TAX

Getting It Right, ERISA, Know Your Fiduciary Responsibilities, 8am-11:30am

16GIRAMY18

149

WSCPA

Webcast also available

16WWGIRAMY

149

Webcast

5/18



WSCPA Women's Leadership Summit 2016, Presented by Deloitte LLP, KPMG LLP, and Moss Adams LLP, 8am-5pm

16WLS

305

405

Meydenbauer Center

5/19

l S

State and Local Tax Update, 7:30am-9:30am

16CHBVMY19

Maggiano's at Lincoln Square

TAX

5/19

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

16FRUMY19

295

395

-30

WSCPA

A&A

Webcast also available

16WWFRUMY

285

385

-30

Webcast

A&A

5/20

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

16INRRMY20

295

395

-30

WSCPA

A&A

Webcast also available

16WWINRRMY

285

385

-30

Webcast

A&A

5/23

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

16BFHCMY23

315

415

WSCPA

A&A

5/24

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

16CRURMY24

315

415

WSCPA

A&A

Webcast also available

16WWCRURMY

305

405

Webcast

A&A

Accounting Standards for Small- and Medium-Sized Businesses: the Annual Update and Review of GAAP and the Tax, Cash, and AICPA Special Purpose Frameworks by Walter Haig, 8am-4pm

16ASURMY25

315

415

WSCPA

A&A

Webcast also available

16WWASURMY

305

405

Webcast

A&A

The Personal Financial Health Checkup: A process on how to become “Financially Self-Sufficient” by Walter J. Haig, 8am-4pm

16PFHCMY26

315

415

WSCPA

A&A

5/25

5/26

Everett 4/25-26

 Y

Governmental Accounting & Auditing Conference 2016 (Everett), 8am-5pm

16GAACE

385

485

Everett Community College

GNP

5/10

1.5

l S

Professional Update, 7:30am-9:30am

16CHEVMY10

Holiday Inn Everett

Washington CPA Ethics and New Developments by Mark Hugh (A WA Requirement) Hosted by the Tacoma Chapter, 7:30am-11:30am

16ETMHMY18

150

175

Courtyard by Marriott

Ethics

l S

State and Local Tax Update, 12pm-1pm

16CHTCMY09

Country Gentleman Restaurant

TAX

Members' Reception at Woodmark Hotel

17NPAU18

Woodmark Hotel

Federal Way 5/18 Kennewick 5/9 Kirkland 8/18

0 S

Mount Vernon 5/2

l S

Employment Law Update, 5pm-7pm

16CHBLMY02

Max Dale's Restaurant

l S

WSBOA & WSCPA Update, 12pm-2pm

16CHOLMY04

Indian Summer Golf

Olympia 5/4

ç New |  Non-tech credits |

www.wscpa.org

Networking event

WashingtonCPA Spring 2016

CONFERENCES

While you’re stuck at the office, I’ll be enjoying a gourmet lunch with a view of Puget Sound.

Get the good stuff @ WSCPA Conferences

WashingtonCPA Spring 2016

www.wscpa.org

CONFERENCES

2016 Conferences Great topics - phenomenal speakers opportunities too amazing for you to miss! April 25-26 WSCPA/AGA Governmental Accounting & Auditing Conference May 9 International Tax Conference May 17 WSCPA/AHIA Health Care Conference presented by CliftonLarsonAllen LLP May 18 Womenâ&#x20AC;&#x2122;s Leadership Summit presented by Deloitte LLP, KPMG LLP, and Moss Adams LLP June 24 Washington State Tax Conference presented by Moss Adams LLP August 2 Farm Tax Conference with Roger McEowen

www.wscpa.org

November 2-3 Pacific Tax Institute November 7 Accounting & Auditing Conference November 14-15 WSCPA/CFMA Construction Industry Conference November 17-18 Not-For-Profit Conference December 8 Fraud Conference December 12-13 Information Technology Conference webcast available

WashingtonCPA Spring 2016

EDUCATION AND EVENTS Date

CPE Credits

Course

Code

WSCPA NonAICPA Member Member Member Discount Fee Fee

Facility

Subject

Type

Seattle 5/9



International Tax Conference 2016, 8am-5pm

16INTC

295

395

Bell Harbor Conf Ctr

TAX

5/17



WSCPA/AHIA Health Care Conference 2016 presented by CliftonLarsonAllen LLP, 8am-5pm

16HCC

280

380

Bell Harbor Conf Ctr

6/9

WSCPA Annual Meeting June 2016, 3pm-6pm

17AM

Bell Harbor Conf Ctr

Spokane 16

 Y

Governmental Accounting & Auditing Conference 2016 (Spokane), 8am-5pm

16GAACS

385

485

NE WA Educ Svc District 101

GNP

4/20

l S

State Nexus: It's Worse Than You Think! Washington State Tax Update, 7:30am-9:30am

16CMSSIAP

Best Western Tacoma Dome

TAX

4/25-26

Governmental Accounting & Auditing Conference 2016 (Tacoma), 8am-5pm

16GAACT

395

495

Tacoma Convention & Trade Ctr

GNP

Webcast also available

16WWGAAC

385

485

Webcast

GNP

4/25-26 Tacoma

 Y

Are you A&A Andy? Tax Goddess Gina? Nonprofit Nicole?

Tax Goddess Gina, CPA

A&A Andy, CPA

ç New |  Non-tech credits |

Update your interests today! www.wscpa.org/mywscpa Click “Manage My Interests”

Nonprofit Nicole, CPA

Superhero CFO Stan, CPA

We recognize that you’re busy and want to send you the information that’s of interest to you.

Construction Ken, CPA

WashingtonCPA Spring 2016

Networking event

www.wscpa.org

CPE Credits

Course

EDUCATION AND EVENTS Code

WSCPA NonAICPA Member Member Member Discount Fee Fee

Facility

Subject

Type

Your Desk - Webcasts and Webinars 4/19

Accounting and Auditing Update WEBCAST, 8:30am-4:30pm

16WBCAP19A

275

375

Webcast

A&A

4/19

Capital Gains Tax Strategies for Advanced Transactions WEBINAR, 11am-1pm

16WNCAP19A

Webinar

TAX

4/19

Single Audit Primer and Update WEBINAR, 8am-10am

16WNCAP19B

Webinar

GNP

4/19

Risk, Cost, and Cash Management for Controllers and Financial Managers WEBCAST, 10am-2pm

16WBBAP19A

149

199

Webcast

4/20

IC-DISC - An Introduction to the Last Remaining U.S. Export Tax Incentive WEBCAST, 10am-12pm

16WBAAP20A

109

Webcast

TAX

4/20

Other Comprehensive Basis of Accounting Fundamentals WEBCAST, 8:30am-4pm

16WBCAP20A

275

375

Webcast

A&A

4/20

Staff Retention: Why Your Best People Leave and How to Prevent It WEBINAR, 9am-11am

16WNCAP20A

Webinar

4/20

Statement of Cash Flows: Preparation, Presentation, and Use WEBCAST, 10am-2pm

16WBBAP20A

149

199

Webcast

A&A

4/21

Administrative Rules for Federal Grants WEBCAST, 8:30am-4pm

16WBCAP21A

275

375

Webcast

GNP

4/22

ASC 740/FAS 109 Step by Step Instruction - Level Basic WEBCAST, 7am-3pm

16WBAAP22A

195

245

Webcast

A&A

4/22

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

16WNCAP22B

Webinar

A&A

4/22

Cloud Accounting Review Series - Systems Overview WEBINAR, 11am-1pm

16WNCAP22A

Webinar

TEC

4/22

Analyzing a Company's Financial Statement WEBCAST, 10am-2pm

16WBBAP22A

149

199

Webcast

A&A

4/22

Washington CPA Ethics and New Developments by Mark Hugh (A WA Requirement) WEBCAST, 8am-12pm

16WBAAP22B

164

194

Webcast

Ethics

4/25

Scenarios, Contingency Planning, & Simulation to Achieve Your Goals & Strategy WEBCAST, 8am-4pm

16WBAAP25A

195

245

Webcast

4/25

GASB Basic Financial Statements for State and Local Governments WEBCAST, 8:30am-4:30pm

16WBCAP25A

275

375

Webcast

GNP

4/25

Deceit, Lies and Embezzlement: How I Stole $350,000 WEBINAR, 8am-10am

16WNCAP25A

Webinar

A&A

4/25

Compilation, Preparation, and Review Engagements Update WEBCAST, 7:30am-11:30am

16WBBAP25A

149

199

Webcast

A&A

4/26

Government Pension Accounting and Financial Reporting WEBCAST, 8:30am-4:30pm

16WBCAP26A

275

375

Webcast

A&A

4/26

Social Security: Public Employee Issues: Social Security Research Techniques WEBINAR, 11am-1pm

16WNCAP26C

Webinar

TAX

4/26

Social Security: Annual Earnings Test & Taxability of Benefits WEBINAR, 8am-10am

16WNCAP26B

Webinar

TAX

4/26

Critical Thinking Skills for Finance and Accounting Professionals WEBINAR, 9am-11am

16WNCAP26A

Webinar

4/27

HUD Multifamily Housing Audits 2014 WEBCAST, 12pm-4pm

16WBAAP27B

129

159

Webcast

GNP

4/27

Yellow Book Audits WEBCAST, 8am-12pm

16WBAAP27A

129

159

Webcast

GNP

4/27

Frequent Frauds Found in Governments and Not-for-Profits WEBCAST, 8:30am-4:30pm

16WBCAP27A

275

375

Webcast

GNP

4/27

Raising Financing: Start-ups, Non-Profits and Growing Entities WEBINAR, 9am-11am

16WNCAP27A

Webinar

4/27

The Most Common Financial Statement and Asset Fraud Schemes: How to Detect and Prevent Them WEBCAST, 10am-2pm

16WBBAP27A

149

199

Webcast

A&A

4/28

Cash Management Strategies WEBCAST, 2pm-4pm

16WBAAP28A

109

Webcast

4/28

Using Performance Metrics to Improve Financial Planning and Control WEBCAST, 7:00am - 9:00pm

16WBAAP28B

109

Webcast

A&A

4/28

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

16WBCAP28A

275

375

Webcast

GNP

4/28

Accounting and Auditing Update WEBCAST, 10am-2pm

16WBBAP28A

149

199

Webcast

A&A

ç New |  Non-tech credits |

www.wscpa.org

Networking event

WashingtonCPA Spring 2016

EDUCATION AND EVENTS Date

CPE Credits

Course

Code

WSCPA NonAICPA Member Member Member Discount Fee Fee

Facility

Subject

Type

4/29

Galvanizing, Enabling, and Measuring Innovation WEBCAST, 9am-11am

16WBAAP29A

109

Webcast

4/29

Cloud Systems - How Do I Know My Data is Safe and Secure? WEBINAR, 12pm-2pm

16WNCAP29A

Webinar

TEC

5/2

Federal Taxation of Legal Marijuana WEBCAST, 9am-1pm

16WBAMY02A

129

159

Webcast

TAX

5/2

5 Elements of a Finding WEBINAR, 10am-12pm

16WNCMY02A

Webinar

GNP

5/2

Single Audit Primer and Update WEBINAR, 2pm-4pm

16WNCMY02B

Webinar

GNP

5/3

Nonprofits: Working with or Serving on Nonprofit Boards WEBINAR, 9am-11am

16WNCMY03A

Webinar

5/3

Sales Tricks to Fool CFOs and Auditors WEBINAR, 1pm-3pm

16WNCMY03B

Webinar

A&A

5/4

S Corporations: How to Calculate the Owner's Basis WEBINAR, 8am-10am

16WNCMY04A

Webinar

TAX

5/4

Strategic Skills for CFOs WEBINAR, 3pm-5pm

16WNCMY04B

Webinar

5/4

Statement of Cash Flows: Preparation, Presentation, and Use WEBCAST, 10am-2pm

16WBBMY04A

159

199

Webcast

A&A

5/5

Preventing Small Business Fraud WEBCAST, 10am-12pm

16WBAMY05B

129

Webcast

A&A

5/5

Finance and Innovation: Reinvent Your Department and Your Company WEBCAST, 12pm-2pm

16WBAMY05A

109

Webcast

5/5

Partnership Investments - How to Calculate the Owner's Basis WEBINAR, 12pm-2pm

16WNCMY05A

Webinar

TAX

5/5

Nuts & Bolts: Detecting & Deterring Fraud in Small Business WEBINAR, 3pm-5pm

16WNCMY05B

Webinar

A&A

5/5

Excel Formula Expert Series - Defined Names & Tables WEBINAR, 11am-1pm

16WNCMY05C

Webinar

TEC

5/6

Keys to Balanced Scorecard: Keeping your Business On-Track! WEBINAR, 9am-11am

16WNCMY06A

Webinar

A&A

5/6

COD Income Issues WEBINAR, 12pm-2pm

16WNCMY06B

Webinar

TAX

5/7

2016 Nonprofit Fraud and Abuse: 5 New Cases SATURDAY WEBINAR, 8:30am-11:30am

16WNCMY07A

Webinar

A&A

5/9

Defective Compensation Systems: When Bonuses and Incentives Go Bad WEBINAR, 11am-1pm

16WNCMY09A

Webinar

A&A

5/9

Construction Contractors: Accounting, Auditing, and Tax WEBCAST, 7:30am-3:30pm

16WBBMY09A

249

319

Webcast

A&A

5/10

Mastering the One Minute Relationship: How to Immediately Build Rapport and Trust So You Can Create More Business WEBCAST, 12pm-4pm

16WBAMY10A

129

159

Webcast

5/10

Real Estate Tax Update: Key Changes for Investors and Owners WEBINAR, 8am-10am

16WNCMY10A

Webinar

TAX

5/10

What’s New in A & A? WEBINAR, 2pm-4pm

16WNCMY10B

Webinar

A&A

5/10

Audit Workpapers: Reviewing Field Work WEBCAST, 10am-2pm

16WBBMY10A

159

199

Webcast

A&A

5/11

CSI RETIREMENT Crime Scene Investigation WEBCAST, 7am-3pm

16WBAMY11A

195

245

Webcast

PFP

5/11

Understand Inventory Accounting: GAAP, Software and Variance Recognition Basics WEBCAST, 11am-1pm

16WBAMY11B

109

Webcast

A&A

5/11

Creating Equity Compensation Plans WEBINAR, 9am-11am

16WNCMY11A

Webinar

5/11

Key Tax Strategies for Partnerships and LLCs WEBINAR, 12pm-2pm

16WNCMY11B

Webinar

TAX

5/12

Using Performance Metrics to Improve Financial Planning and Control WEBCAST, 9am-11am

16WBAMY12A

109

Webcast

A&A

5/12

The GAO’s Green Book: Internal Controls WEBINAR, 8am-10am

16WNCMY12A

Webinar

GNP

5/12

FICA/Self-Employment Tax Exposure: S Corps & Partnerships WEBINAR, 2pm-4pm

16WNCMY12B

Webinar

TAX

5/13

Supplier Audits to Protect Your Bottom Line WEBINAR, 11am-1pm

16WNCMY13A

Webinar

A&A

5/14

Alternative Minimum Tax: How it Can Impact Your Clients SATURDAY WEBINAR, 7am-9am

16WNCMY14A

Webinar

TAX

ç New |  Non-tech credits |

WashingtonCPA Spring 2016

Networking event

www.wscpa.org

CPE Credits

EDUCATION AND EVENTS

Course

Code

WSCPA NonAICPA Member Member Member Discount Fee Fee

Facility

Subject

Type

5/16

Federal Taxation of Legal Marijuana WEBCAST, 9am-1pm

16WBAMY16A

129

159

Webcast

TAX

5/16

Financial Accounting for Related Party Transactions WEBINAR, 1pm3pm

16WNCMY16A

Webinar

A&A

5/16

How Will You Handle the New Revenue Recognition Standard? WEBINAR, 3pm-5pm

16WNCMY16B

Webinar

A&A

5/16

Identity Theft: Preventing, Detecting, and Investigating WEBCAST, 7:30am-3:30pm

16WBBMY16A

249

319

Webcast

5/17

Small GAAP: AICPA Private Company Financial Reporting Standards WEBINAR, 8am-10am

16WNCMY17A

Webinar

A&A

5/17

Protecting Americans from Tax Hikes Act of 2015 WEBINAR, 10am12pm

16WNCMY17B

Webinar

TAX

5/18

Yellow Book Audits WEBCAST, 8am-12pm

16WBAMY18A

129

159

Webcast

GNP

5/18

HUD Multifamily Housing Audits 2014 WEBCAST, 12pm-4pm

16WBAMY18B

129

159

Webcast

GNP

5/18

Millennials: Myths and Truths Behind the Next Gen of Leaders WEBINAR, 8:30am-10:30am

16WNCMY18A

Webinar

5/18

Fake Confirmations, Reports, and Opinions: Detection and Solutions WEBINAR, 1pm-3pm

16WNCMY18B

Webinar

A&A

5/19

Captive Insurance: An Effective Financial and Risk Management WEBINAR, 9am-11am

16WNCMY19A

Webinar

TAX

5/19

5 Elements of a Finding WEBINAR, 2pm-4pm

16WNCMY19B

Webinar

GNP

5/19

Interpreting the New Revenue Recognition Standard: What All CPAs Need to Know WEBCAST, 10am-2pm

16WBBMY19A

159

199

Webcast

A&A

5/20

Financial Infidelity and Divorce Strategies WEBINAR, 8am-10am

16WNCMY20A

Webinar

5/21

Asset Protection Strategies SATURDAY WEBINAR, 7am-9am

16WNCMY21A

Webinar

TAX

5/23

Performance Auditing Essentials WEBINAR, 9am-11am

16WNCMY23A

Webinar

GNP

5/23

Real Estate Tax Update: Key Changes for Investors and Owners WEBINAR, 12pm-2pm

16WNCMY23B

Webinar

TAX

5/24

IRA/ Roth IRA Planning Strategies WEBINAR, 12pm-2pm

16WNCMY24A

Webinar

TAX

5/24

Individual Tax Update and Recent Developments WEBINAR, 2pm-4pm

16WNCMY24B

Webinar

TAX

5/25

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

16WBAMY25A

195

245

Webcast

TEC

5/25

What You Need to Know About the New AICPA PFP Standards WEBINAR, 9am-11am

16WNCMY25A

Webinar

5/25

Tax Depreciation: Current Developments and Update WEBINAR, 11am-1pm

16WNCMY25B

Webinar

TAX

5/26

Net Operating Losses - Dealing with the Complexities WEBINAR, 8am-10am

16WNCMY26A

Webinar

TAX

5/26

Partnerships and LLCs vs. S Corporations - How Many Tax Differences Remain? WEBINAR, 1pm-3pm

16WNCMY26B

Webinar

TAX

5/27

Time Mastery for CPAs: Over 100 Ways to Maximize Your Productivity and Satisfaction WEBCAST, 7am-3pm

16WBAMY27A

195

245

Webcast

5/31

Nuts & Bolts: Detecting & Deterring Fraud in Small Business WEBINAR, 9am-11am

16WNCMY31A

Webinar

A&A

5/31

Internal Control’s New Muscles WEBINAR, 12pm-2pm

16WNCMY31B

Webinar

A&A

www.wscpa.org/cpexpress

ç New |  Non-tech credits |

www.wscpa.org

Networking event

WashingtonCPA Spring 2016

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 2016

www.wscpa.org

CLASSIFIED ADS

Detailed advertising information is available online at www.wscpa.org under More. Ads are $1 per word, with a $50 minimum fee. Active e-mail and web site addresses are included.Ads are placed on the website for 60 days when received and in the next magazine when received by the deadline, June1 for the summer 2016 issue. Post a job listing at www.wscpa.org (click Job Board). For rental or vacation property use the miscellaneous category. Contact Janet White at (425) 586-1126, or memberservices@wscpa.org for more information. All ads must be pre-paid. OFFICE SPACE Downtown Seattle Office Space withWestern Puget SoundView. Up to 3 window offices ($1,300) and up to, 2 interior office spaces ($400) available May 1…17th Floor of Puget Sound Plaza. Cross referrals and tax software sharing possibilities with professional and collegial group of tax/business attorneys and CPA.Reception and conference room included. Potential for earlier move-in date. Contact joanne@ortcpa.com or 206-696-7516. PRODUCTS & SERVICES CANADIAN TAX RETURN PREPARATION Preparation of Canadian income tax returns for U.S. individuals and companies doing business, providing services, earning rental income or selling real property in Canada. Please contact Gabor Palos CPA (Cda), CGA, Vancouver BC, www.gxp.tax, (604) 261-0714, gpalos@gxp.tax. SELF-DIRECTED IRA LEGAL CONSULTING Have a client who is considering (or already has) an IRA that is invested into “nontraditional” assets (e.g., real estate, closely-held business interests, etc.)? I am a tax attorney in Seattle and my practice consists almost exclusively of counseling clients in this complex area of tax law. See www.FairviewLawGroup.com for more information. MERGERS & SALES CPA PRACTICE FOR SALE-UNIVERSITY PLACE/TACOMA Established practice of 30 years, comprised of 60% tax and 40% audit work. Sole practitioner plus one CPA, a full-time receptionistbookkeeper and one-part time person.The practice is located in a stand-alone, low-overhead building that is also for sale. (253) 564-1725. Considering Selling Your Practice? Consider all your options. We do the work. Confidential. We have buyers actively seeking practices. Call Mark Hause at (877) 345-7722 or visit our website at www.accountingpracticesales.com. Accounting 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.

www.wscpa.org

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 1096) Marysville CPA Tax Practice for Sale: This CPA practice that provides quality tax services for many loyal clients is for sale.This firm is the type of practice many seek with a high percentage of the annual revenues from the preparation of income tax returns. The firm’s revenue dollars by category of service are 94% income tax and 6% write up. The practice, with a great bottom line, is the right opportunity for any accountant ready to start their own firm, take a small firm to the next level, or a nearby firm seeking to add a book of business to an existing practice. (WA 1100) Poulsbo EATax Practice for Sale: This tax centered EA practice is for sale. The firm generates 77% of revenues from a tax practice with just enough write up work to balance out the year. The fee structure is excellent for individual returns with the average being equal or above most similar sized firms.The practice takes a proactive approach with clients to provide advice and counsel throughout the year rather than only during tax season.The result is an extremely loyal group of clients who actively refer clients seeking the personal touch.This firm is the perfect husband/wife opportunity or for buyers seeking a tax centered practice with the hard work accomplished in building a practice. (WA 1101) Bellingham/Ferndale-Whatcom County CPA Tax Practice for Sale: This wellmanaged CPA tax centric practice is for sale. The firm is filled with clients that return year after year and produce a net cash flow that exceeds 50% of revenues.The revenues are 87% income tax and the balance is write up and consulting.With an excellent staff providing solid backup, the firm offers ample opportunity for the expansion of services consistent with the abilities and interest of the new owner. Whether looking for your first practice or a highly profitable addition to an existing firm, this practice provides ample challenge and reward. (WA 1102) Seattle CPATax Practice for Sale: This CPA firm is a tax practice that specializes in the commercial fishing industry.The firm has no write up work electing to focus on rendering income tax services to the clients of the practice.The next

attribute is the overall average of fees equaling $879 per return which creates a great net cash flow. Last but by no means least is a tax practice without the 4-15 crunch.The firm extends many of the returns with the result being that 45% of the annual billable time is performed in the time period from June to October.This practice with all these elements mentioned including a great staff is the kind professionals actively seek and rarely find. All of this without the really difficult tax season stresses that push the staff and owner to the limit. (WA 1095) Clallam County/Central Olympic Peninsula EA Tax Practice for Sale: This Enrolled Agent practice is well balanced with a tax practice that produces approx. 58% of annual revenues and write-up services bring in the rest. The firm has an excellent location that promotes a community awareness of its services due to the high daily traffic count. In addition, the practice has many loyal clients who annually refer their friends and produces a net cash flow to owner that is head and shoulders above the norm.This practice is set for any buyer to continue the success of the past under new ownership.

SOLD

(WA 1092) Kittitas County EA Tax Practice for Sale: This well-established Enrolled Agent practice with remarkable balance in professional fees is for sale.The firm has two great books of business with tax and write-up revenues being approximately equal and a small amount of consulting making up the balance.The revenue stream provides great balance and great cash flow through the year.The firm also has great momentum with revenue increasing in double digits for the last two years.This firm fits a number of buyers who are looking for an opportunity to enjoy the fruits of their labor. (WA 1073) 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.

VOLUNTEER OPPORTUNITIES The following organizations need a CPA to serve on the board of directors and/or provide other guidance on financial matters. Learn more about these, and others organizations that need your help, under Volunteer opportunities for CPAs, at www.wscpa.org/more/marketing-to-cpas.

EKARI Foundation – new Helping Link-Mot Dau Noi) Seattle Milk Fund – new The Mockingbird Society - new University of Washington Medical Center Service League – new

WashingtonCPA Spring 2016

www.wscpa.org

MEMBER PROFILE

Gayle Bushnell, CPA Senior Vice President/CFO Northwest Administrators, Inc. Seattle, WA Member since 1980

Employer: I have worked with Northwest Administrators, Inc. (NWA), a third party administrator for employee benefit programs, for just over 39 years, starting less than a year after I graduated from Central Washington University as an accounting major.

Originally from:

Port Orchard, Washington

Highlights of my career:

Being named a corporate officer at a very young age and now mentoring the next generation of NWA leaders

My idea of a great weekend:

A getaway planned by my husband to anywhere on the Oregon coast so we can hike, walk on foggy beaches and eat lots of salmon!

I volunteer: Hobbies:

Building homes locally and throughout the country for Habitat for Humanity. I have served on the board for the local Seattle Habitat for Humanity affiliate. Reading, walking, golf

Latest book I have read:

The Nature of the Beast by Louise Penny

Favorite book:

Favorite movies:

Favoite musician/genre of music:

If I weren’t an accountant, I would be: An architect because I’m fascinated by the design and construction process for buildings as well as interior spaces

The Pillars of the Earth by Ken Follett Chariots of Fire, Brooklyn Michael Buble/easy listening

Favorite TV channel: HGTV Favorite vacation spot:

Santorini, Greece - the island setting is breathtaking!

People would be surprised to know:

I am a devoted fan of “Dancing With the Stars” and feel confident in my ability to determine if any particular dance sequence includes enough “content” to achieve a 10 score.

My superpower:

My ability to zoom in on any words in any context that are spelled incorrectly

The superpower I would like to have: If I could have dinner with anyone:

I would like the ability to instantly transport myself to another city or country without having to take normal transportation methods!

My friendships and making sure that I treat those friendships as cherished gifts

I am passionate about:

Favorite quote: www.wscpa.org

I would choose Carol Burnett, because she came from humble beginnings and through hard work and perseverance she made her mark.

“Be faithful in small things because it is in them that your strength lies.” - Mother Teresa WashingtonCPA Spring 2016

Periodicals postage paid at Bellevue WA and additional mailing offices

Your Profession. Your Future. Your Advocate.

CLEAR

AREA

THANK YOU FOR YOUR MEMBERSHIP

Jumping Jan, CPA

Your WSCPA membership is up for renewal. Jump like Jan and renew your membership now. You might even receive a snazzy reward... Renew and update your interests by June 1 for a chance to win one of four $300 Amazon™ gift cards.

Whenever I receive an invoice or a bill, I jump up and take care of it right away.

Renew now! www.wscpa.org/renew Update interests at www.wscpa.org/MyWSCPA (click “Manage My Interests”)