The Washington CPA 2021 Summer

THE

WASHINGTON CPA

Volume 65, Number 1

SUMMER 2021

Disaster Planning

The Latest Trends in Blockchain and Crypto Sustainability Reporting Gaining Traction

in the post-COVID-19 "new normal"

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THE WASHINGTON CPA SUMMER 2021

www.wscpa.org • memberservices@wscpa.org Tel 425.644.4800 902 140th Ave NE Bellevue, WA 98005-3480

BOARD OF DIRECTORS Thomas J. Sulewski Chair Sara E. Bailey Vice Chair Joyce Lee Treasurer Andrew Brajcich Secretary Jared M. Theis Immediate Past Chair Kimberly D. Scott President & CEO

Aaron R. Dawson Lowel Krueger

Sarah Funk Diane Pietrowski

Norm Haugen Bryce Rassilyer

Courtney Hirata Leslie Sesser

Writu Kakshapti Bonnie Tse

CHAPTER BOARD CHAIRS

TBD Bellingham Area TBD Everett Area Darin Johnson Olympia Area Brittany Malidore Seattle/Bellevue Area Tara Lambert Spokane Area Jessica Packer Tacoma Area Anthony Adams Tri-Cities Area Connie Olson Tri-Cities Area Canada Segura Yakima Area Wade Helms Yakima Area

MAGAZINE PRODUCTION Jeanette Kebede Editor Kaitlin Brake Art Direction

The Washington CPA 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 Washington Society of CPAs. 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.

CONTENTS

On the Cover The Latest Trends in 16 Blockchain and Crypto Sustainability Reporting 18 Gaining Traction Disaster Planning in the Post- 21 Covid-19 "New Normal"

Spotlights 2021-2022 Washington CPA Foundation 8 Scholarship Winners 2020-2021 WSCPA Award Winners 24

Departments Leadership Lens 4 Washington CPA Foundation 14 Upcoming CPE 30 Classified Ads 34 Peak Firms 37 Advocacy 38

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

Cover Graphics Illustration: © iStock/Feodora Chiosea POSTMASTER: Send address changes to The Washington CPA, c/o WSCPA, 902 140th Avenue NE, Bellevue, WA 98005-3480.

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A Wild Ride,

Congratulations & Summer BBQs Tom Sulewski, CPA

LET ME START OFF MY TERM AS WSCPA CHAIR WITH A HEARTFELT CONGRATULATIONS! Congratulations to all WSCPA members on just simply making it through a very wild ride.

This past year reminds me of the mega coaster rides at a theme park. If you were like me, you walked up to the loading zone all confident and cocky—brushing away nerves and anxieties of those around you. “It’s just a carnival ride for goodness sake!

What’s the big deal?”

Next, it was your turn to be seated in the car. Then things started to get real and the tone started to change. You got locked in the car with a small group of people—your bubble, your pod.

You had no idea what to expect, no idea what was ahead.

It started smoothly enough as you waved tentatively to the crowd and pulled away from the boarding gate. That was totally how I felt—a two-week shutdown and this whole thing will pass, a mini “work from home vacation,” right?

Tighten Your Lap Belt Oh, were we wrong! In those early days of March 2020, I would come home from a relatively normal day at work to an entirely different reality. My wife had been to Costco stocking up on supplies and canned goods and meat for the freezer. Lots of meat for the freezer! As the pandemic played itself out during the following months and quarantine boredom set in, we started to binge watch one too many shows on heathy eating. And, now with freezers full of frozen meat, we have shifted to plant-based diets—go figure!

The ride took us on more twists and turns and loops than we would have ever imagined—canceled graduations, delayed weddings, skipped family holidays, and don’t forget online school. There were

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The Washington CPA Summer 2021

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LEADERSHIP LENS

so many points when we just wanted off the ride so badly.

But there was no way out, no easy exit, and no one to stop it. You had to rely on your own courage, connections, and faith to keep on moving forward. Now, fortunately, we are coasting along that final straightaway to the exit platform.

We are catching our breath and realizing we have likely made it through the worst. And behind those masks we are starting to smile again.

You are survivors and you are helpers. Against the unpredictable headwinds of a global pandemic, you dug in and did your part to help your families, friends and clients. Whether it was navigating PPP loans, forgiveness applications, adjusting tax planning strategies, advising on business model changes, scheduling vaccine appointments for parents, teaching kids in the dining room, or delivering groceries for those in need, you were always available when your clients or friends needed you most. You served to the best of your ability with limited preparation, almost no warning, very little authoritative guidance, and deadlines that just kept on moving. But … you did it!

You made a difference and you helped blunt the economic impact of the most sudden economic storm of our lifetimes.

Your efforts likely saved companies, saved jobs, and certainly re-affirmed why CPAs are the most trusted business professionals.

While it has certainly been a scary, unpredictable trip we have learned an awful lot as a profession and as individuals.

Family and peer connections proved to be so important to our mental and emotional well-being—even if they had to be nurtured over Zoom or from 6 feet away. Let’s not forget these relationship lessons as we begin to build back.

Our Work is Not Done Thanks to the valiant efforts of scientists and medical professionals, vaccines are gaining the upper hand and case counts are dropping throughout most of our country.

As turbulent as shutdown was for all of us, the economic snapback will have its own challenges. Most of our firms are preparing for some yet-to-be-defined “new normal.” As leaders, we will need to expand our thinking of where we work, how we work and who our workforce will even include.

From what I can see, there are some choppy waters ahead.

College accounting enrollments are down. A recent Harris Poll showed that 59 percent of middle-income workers are considering a job change.

As our employees make new life choices with pandemic motivated new priorities, we will likely have to embrace more robust, flexible work options that will include talented employees providing client service from wherever they are. We will need to keep expanding our workforce to leverage para-professionals, project managers, data analytic technology, and artificial intelligence tools to get better results, while lightening the load on the CPAs and freeing them to play to their strengths.

And our profession needs to finally get serious about expanding the reach of our recruiting programs and growing the talent pipelines. 2021 is the 100th anniversary of the first black CPA and still only two percent of our profession is black. We can do better engaging role models, advocates and outreach ambassadors for all under-represented communities.

Once we get the attention of a new generation of accounting candidates, we must tell the vibrant story of our profession: the story of how we change the world, make a difference, and fuel the economic engine of society so people’s dreams can be achieved.

Let’s listen closely to the returning workforce and do the hard work to adapt. I have two college-age sons just entering the workforce. They want to make valuable contributions, but they don’t want to work the way I did 30 years ago … and, quite frankly, I don’t want them to. They want a full and balanced life with their work as one important piece of their bigger plan.

I certainly don’t have the answers to how we are going to get there, but I do know that I am honored to be associated with an innovative group of more than 7,000 WSCPA members who will help and support our profession through the next evolution of how we serve.

Yes, we have much work to do. But in the weeks ahead do take some time to reconnect this summer as you have earned it, do plan some trips as you deserve it, and do schedule some backyard barbeques with friends as they miss you. Just don’t order meat for that barbeque … instead contact me directly as I have plenty for you in my freezer!

Tom Sulewski, CPA, is the shareholder in charge of the audit department for Clark Nuber PS and WSCPA Chair. You can contact him at tsulewski@ clarknuber.com.

How will we adjust and continue to serve with these dynamics?

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Illustration: © iStock/Diane Labombarbe

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2021-2022 Scholarship Recipients Named Scholarships

Undergraduate Recipients

Clark Nuber Accounting Scholarship Robyn Fietz Gonzaga University

George J Waterman Memorial Scholarship Tina Do University of Washington - Bothell 8

Shimer Family Foundation/ DP&C Black Accounting Deloitte Accounting Scholarship Scholarship Jenna Lauer Ronee Jones Washington State University Central Washington University - Pullman - Des Moines

George J Waterman Memorial Scholarship Madeline Seidel University of Washington

The Washington CPA Summer 2021

KPMG Accounting Scholarship Jack Ellis Washington State University - Pullman

EY Accounting Scholarship Yiting Chen University of Washington

Moss Adams LLP Accounting Scholarship Riley Bergan Whitworth University www.wscpa.org

$5,000

to undergraduate + 5th-year students PwC Accounting Scholarship Shiasia Carter Seattle Pacific University

Roy J Polley Memorial Endowed Scholarship Hisham Abdus-Salam Western Washington University

$8,000

to master’s students We are honored to celebrate the 82 accounting students in the state of Washington who recently were selected to receive accounting scholarships. We had many worthy applicants who all demonstrated significant potential for success in the profession. Our selection committee chose the following students for their outstanding GPAs, strong letters of recommendation, and compelling essays. With the support of contributors, individuals, and organizations that support the work of the Foundation, we are privileged to be able to support this promising group of future CPAs.

Roy J Polley Memorial Endowed Scholarship Daniel Borrelli Washington State University - Pullman

Roy J Polley Memorial Endowed Scholarship Paul D'Agnolo North Seattle College

Roy J Polley Memorial Endowed Scholarship Catherine Follett Gonzaga University

Roy J Polley Memorial Endowed Scholarship Chelsea Annette Hall Central Washington University - Lynnwood

Roy J Polley Memorial Endowed Scholarship Ruby LeClair Western Washington University

Roy J Polley Memorial Endowed Scholarship Dawson Oen Gonzaga University

Roy J Polley Memorial Endowed Scholarship Audrey Rhodes Gonzaga University

Roy J Polley Memorial Endowed Scholarship Tim Rowe Eastern Washington University

Roy J Polley Memorial Endowed Scholarship Lucy Turner Gonzaga University

Roy J Polley Memorial Endowed Scholarship Natalie Veto Gonzaga University

Sambataro Family Foundation Accounting Scholarship Anita Eti Gonzaga University

TrueBlue Inc Accounting Scholarship Amanda Sides University of Washington - Tacoma

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WASHINGTON CPA FOUNDATION

Washington CPA Foundation Accounting Scholarships Undergraduate Recipients

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Mariah Alexander Seattle Pacific University

Christian Anderson Washington State University - Pullman

Jeffrey Baldwin University of Washington - Bothell

Erika Burka University of Washington - Bothell

Yin Deng University of Washington

Jan Trinity Francisco St. Martin's University

Merina Gilbride Washington State University - Vancouver

Lily Haghighi University of Washington

Nathan Judd Seattle Pacific University

Dorothy Kemph University of Washington - Bothell

Se Kim University of Washington

Breanna Koenninger Gonzaga University

Rachel LaBrie Seattle Pacific University

Mariya Litovchenko University of Washington - Bothell

Rose Loetterle Western Washington University

Ryan McKinley Washington State University - Pullman

Jeff Matthew Melchor Gonzaga University

Lexi Nakhla Whitworth University

Skyler Pollak University of Washington

Emily Reid University of Washington

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WASHINGTON CPA FOUNDATION

Edrees Sidiqi University of Washington

Jeanette Sosa Western Washington University

Truman Sulewski University of Washington

Blake Tarbell Gonzaga University

Katelyn Ward University of Washington - Tacoma

Michelle Yeung University of Washington

Michelle Tan University of Washington - Bothell

For The 2021-2022 Washington CPA Foundation Scholarship Awards

82

recipients

16

colleges

40%

diverse backgrounds

26%

1st generation college students

WASHINGTON CPA FOUNDATION

Washington CPA Foundation Accounting Scholarships Graduate Recipients

12

Michaela Abraham Gonzaga University

Jessi Bader Gonzaga University

Leanna Christian University of Washington - Tacoma

Daisy Chu Seattle University

Collin Cramer Gonzaga University

Emma Dugenske Gonzaga University

Drew Dunston University of Washington

Reina Godeck University of Washington

Sylvia Gonzalez University of Washington - Tacoma

Nicholas Haynie University of Washington

Andrew Joy Western Governors University

Bethany Kaufman Gonzaga University

Kaitlyn Kiteley Western Washington University

Shravya Komarla Ramesh Seattle University

Melika Korhani Shirazi University of Washington - Bothell

Kailey Kovach Central Washington University - Lynnwood

Samuel McEwan Gonzaga University

Thanh Mai Thy Nguyen University of Washington

Chau Nguyen Gonzaga University

Patrick Parelius Gonzaga University

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WASHINGTON CPA FOUNDATION

Emily Reid Gonzaga University

Jenna Rogers Gonzaga University

Lisa Rookaird University of Washington - Bothell

Nicole Schroeder Gonzaga University

Zahra Seyedahmadbana University of Washington - Bothell

Holle Stevenson University of Washington - Tacoma

Athena Stirbis University of Washington

Jazmine Sumner Eastern Washington University

Kaitlyn Tran University of Washington

Nomin Ulziisaikhan University of Washington

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WASHINGTON CPA FOUNDATION

FOUNDATION UPDATE:

New Scholarship Opportunity and Increased Scholarship Awards in 2022 Monette Anderson

As we look to the future, the Foundation continues to adapt to environmental changes in the profession and seeks to continue to lift barriers to entry for the accountants of tomorrow. CPA Evolution is on the horizon and with it continues the debate over how well the accounting curriculum in the United States serves the needs of students and practitioners, and on how prepared students are to take the CPA Exam.

Increasing Master’s Scholarship Awards The 150-credit requirement was initially developed with the expectation that most students would pursue graduate degrees.

Due to the rising cost of higher education, increase of student debt, and added pressure of delaying work another year, we know many students are pursuing the 30 credits by taking additional courses concurrently with their bachelor’s degrees. In addition, research has found that the pass rate for graduate degree holders was significantly greater than that for bachelor’s degree holders, with a 10% higher pass rate for graduate students*. The Foundation increased award amounts in 2019 from $5,000 to $8,000 for master’s students to help address those challenges and build a stronger pipeline. We plan to increase award amounts to $10,000 for master’s degree students next year to continue to support these efforts to best prepare students for the CPA exam.

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Devoted to Pipeline Diversity The Foundation has also remained committed to making progress in supporting a more diverse pipeline of accounting students into the profession. In 2016, the first year of the Washington State Board of Accountancy scholarship partnership, only 17 percent of applicants identified themselves as diverse (with 34 percent as Caucasian and 46 percent unidentified). In 2021, 40 percent of Foundation scholarship recipients self-identified as diverse applicants. We have changed how we solicit this data from scholarship applicants (asking before and after the award process) in order to maintain the best records of metrics and success. We also modified on-campus marketing tactics at nontraditional campuses, where we saw a significant increase in applicants.

Currently, our scholarships support rising juniors through fifth year or master’s students. This year, in an Olympia Area Chapter effort to continue to increase access $2,000 Accounting to the profession, the Foundation Scholarship approved $20,000 in additional Thalya Contreras scholarship funds to support St. Martin's University students at the rising college freshman or

Illustration: © iStock/Denyshutter

Another year of Washington CPA Foundation scholarship awards has been completed, with $5,000 and $8,000 scholarship checks hitting registrars’ offices in late summer. This year, a record number of students started scholarship applications, which I think is a reflection of the struggles that students experienced in the face of this pandemic. More than 80 members, our largest number to date, stepped up to meet the challenge of reviewing applications and scoring this year’s applicant pool.

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WASHINGTON CPA FOUNDATION sophomore level. These awards will support students at $2,000 for the first two years of their education. WSCPA will also continue to support these members with a student membership and work on wrap-around support and programs within this community to provide increased networking, mentorship and professional exposure to careers possible with a CPA license.

As with all our scholarships, students will be eligible to reapply for funds every year.

We are excited about this new scholarship venture and the opportunity to fund and welcome even more students to our community. You are encouraged to support our efforts by becoming a scholarship reviewer or spreading the word about these scholarships. We know that students are more likely to apply for a scholarship if someone personally asks them to apply. Consider inviting a high school senior with an interest in accounting or a student contemplating an MPAcc to apply for a Washington CPA Scholarship. Applications will be open for all Washington CPA Foundation Scholarship opportunities in the fall. *Source: www.cpajournal.com/2019/10/02/coa-exam-performance/2019 CPA Exam Performance Monette Anderson is the WSCPA Director of Membership and staff liason to the Washington

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CPA Foundation. You can contact her at manderson@wscpa.org.

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TECHNOLOGY

The Latest Trends in Blockchain and Crypto Dr. Sean Stein Smith

The blockchain and cryptoasset landscape continues to accelerate and evolve in ways that just a short time ago would have seemed radical or outlandish. Below are some recent developments and what they might mean for practitioners moving forward.

Crypto Payments are Here Following the clarifications by the Office of the Comptroller of the Currency (OCC) allowing federally chartered banking institutions to buy, sell and approve certain crypto transactions, the trend is clear. In addition to these announcements, multiple banking charters have been granted to digital asset institutions.

The takeaway is that clients will be dealing with crypto payment issues, and CPAs need to know what to ask, how to ask and how to interpret the answers received. Other issues include the following: • Specific industries, such as the still-nascent cannabis industry, can benefit dramatically from the integration and implementation of blockchain and crypto asset solutions.

•

C  ost savings and other operational opportunities regarding near-real-time reporting and reducing the need for manual confirmations are going to increasingly move from concept to reality; are practitioners prepared for these adjustments?

Stablecoins Can the profession successfully navigate the potential complications that can, and do, arise from cryptoasset accounting for instruments such a stablecoins? Some additional issues that stablecoins create include the following: • From a practitioner perspective, what are the broader implications of clients, both now and in the future, beginning to accept crypto payments as an integrated part of business operations?

• From a cybersecurity standpoint, are clients and practitioners going to be up to speed with regard to dealing with an increasing amount of digital payments?

Accounting Open Items There are still a significant number of accounting-related open items that need to be addressed in order to generate wider adoption and utilization, including the following: • A  re clients aware of tax obligations related to crypto?

• D  o clients properly disclose crypto-related information to regulators, most notably the IRS, in the correct manner?

• I s there a process in place at the organization to correctly value and report updated values of crypto holdings as they change?

Cyber Risk New Iterations of Crypto Are Here Stablecoins, digital twins connected to blockchain and the potential rise of the non-fungible token (NFT) sector all represent new iterations of blockchain that need to be understood, assessed and integrated into business operations. Depending on the client, an increasing percentage of assets, revenues and operations might be taking place in a purely digital or even crypto environment.

Specific questions to ask include the following: •  W hat crypto wallet (storage) applications are being considered and potentially implemented by the organization?

• Has the insurance for the organization been updated or modified to account for the potential risk of hacks or other cybersecurity issues linked to block­chain and cryptoassets?

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Cybersecurity and other technology controls and considerations also need to be brought to the front burner. Practitioners need to pay special attention to the following issues: • I f crypto payments are accepted, what controls exist over the interoperability between new crypto-specific applications and legacy systems?

• Are the cybersecurity policies inside the organization (e.g., internal controls) updated and inclusive of blockchain and crypto-specific issues?

Decentralization of Finance (DEFI) In the last year or so, the concepts of decentralized finance and decentralized exchanges have raced ahead. Doing a deep dive on these concepts is beyond the scope of any single piece, but the tax and accounting implications of concepts like block rewards, liquidity mining, yield arming and other DeFi-native applications are going to continue to raise complicated questions for the foreseeable future.

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Non-Fungible Tokens The race toward new cryptoasset applications and developments continues unabated, with the recent rise of non-fungible tokens (NFTs) representing just the most recent iteration. Highlighted by digital collectibles and potential video game monetization opportunities, NFTs have tremendous potential. A working definition of this new cryptoasset can be put together as follows: NFTs are a unique and indivisible digital asset that 1) are connected to an underly­ing blockchain, 2) are unique and cannot be exchanged for one another as equivalents (versus dollars or bitcoin) and 3) are linked to a specific asset.

Clearly, the blockchain and cryptoasset sectors continue to develop and evolve at a rapid rate, and alongside this rapid development and expansion are going to be accounting and reporting issues that need to be addressed. These might seem like significant challenges, but they also create quite a few opportunities for motivated and proactive practitioners.

Dr. Sean Stein Smith, CPA, DBA, CMA, CGMA, CFE, is a professor at the City University of New York — Lehman College. He can be reached at drseansteinsmith@gmail.com.

Reprinted with permission of the New Jersey Society of CPAs, njcpa.org, from the Summer 2021 issue of New Jersey CPA magazine (njcpa.org/newjerseycpa).

Photo: © iStock/peterschreiber.media

Learn More BLOCKCHAIN: FUNCTIONAL APPLICATION Webcast | Thursday, 9/23 from 6:00am - 10:30am PDT

wscpa.org/block-function BLOCKCHAIN FOR GLOBAL SUPPLY CHAIN Webcast | Tuesday, 9/14 from 6:00am - 9:00am PDT Webcast | Wednesday, 12/8 from 10:00am - 1:00pm PDT

wscpa.org/block-supply TAX IMPLICATIONS OF CRYPTOCURRENCY Webcast | Monday, 9/27 from 8:00am - 10:00am PDT Webcast | Tuesday, 11/23 from 11:00am - 1:00pm PDT

wscpa.org/tax-crypto

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ACCOUNTING

Sustainability Reporting Gaining Traction Robert Bloom & Mark J. Myring Sustainability reporting, or social accountability as it is sometimes called, is receiving increased attention. It has been defined as encouraging companies to go beyond their legal responsibilities to invest in and improve their human capital, physical environment, and relations with diverse stakeholders.1 In this column, we look at the importance of social accountability in the minds of corporate leaders, review the research that investigates the performance of companies that embrace sustainability reporting, and discuss disclosure frameworks.

Corporate Leaders In August 2019, Business Roundtable, an association of CEOs of leading U.S. companies, revised its Statement of the Purpose of a Corporation to assert that companies should serve not only their shareholders, but also deliver value to their customers, invest in employees, and deal fairly with suppliers as well as support the communities in which they operate.2 The statement was signed by nearly 200 CEOs. On the list were the leaders of the four largest accounting firms: Carmine Di Sibio (EY), Bob Moritz (PwC), Punit Renjen (Deloitte), and Bill Thomas (KPMG).

KPMG’s 2020 CEO outlook survey,3 which included responses from 1,300 CEOs, with a follow-up survey of 315 CEOs, pointed to a greater emphasis on social accountability. For example, 79% of CEOs reported they have reevaluated their overall organizational goals as a result of the COVID-19 crisis. Further, 65% of CEOs surveyed observed that the public expects them to help fill the void on societal challenges.

Microsoft is a leader in sustainability reporting. Its sustainability report documented significant expenditures: • $1.9 billion in donated or discounted products and services to help 243,000 nonprofits globally better serve their communities.

• $4 billion to diverse-owned businesses, continuing to place Microsoft in the top 20 companies for diversity spending globally.

• Microsoft employees donated $221 million (inclusive of company matching grants) to nonprofits worldwide and volunteered more than 750,000 hours in the United States.

Company Performance Despite the increased emphasis, there have been questions about the impact these initiatives have on performance and firm value. Considerable research has been conducted on the impact of sustainability initiatives, their disclosure, and future performance. In general, these studies suggest that there may be some financial incentive to adopting or maintaining behaviors consistent with sustainability.

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Research has shown that sustainability disclosures can affect a firm’s financial standing. Some have shown that social disclosures reduce the cost of capital of firms.4 There is also some evidence that corporate philanthropy is associated with future revenue growth.5 Finally, corporate social responsibility and firm value have been shown to be positively related for firms with high customer awareness, as measured by advertising expenditures.6

Reporting The Securities and Exchange Commission (SEC) recently took action to increase the disclosures firms are required to make regarding their human capital with an amendment to Item 101 of Regulation S-K. This change will require companies to disclose a principles-based, individualistic (not boilerplate) description of their material human capital resources, including measures or objectives the company uses to manage its own operations. This new disclosure requirement is designed to provide stakeholders with insight into the operating model, talent acquisition, development, and innovation.7 The disclosures are expected to include items such as those related to the attraction, safety, engagement, and retention of employees.

Most large publicly traded companies in the United States voluntarily provide sustainability disclosures.

This reporting typically focuses on three areas: environmental, social, and governance (ESG). Ideally, ESG reporting entails a long-term perspective that aligns corporate goals with the need to conserve resources and support the community. While few companies engage in detailed ESG reporting within their annual reports, most provide social disclosures separately.

There are two primary standardsetting bodies in the area of sustainability reporting: the Sustainability Accounting Standards Board ( SAS B ) a n d t h e

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ACCOUNTING

Global Reporting Initiative (GRI). SASB standards focus on three attributes: • Financially material – Identify, manage, and report on the sustainability topics that matter most to investors and donors.

• Market informed – Standards based on feedback from companies, investors, and other market participants as part of a publicly documented process.

• Industry specific – Enable investors and companies to compare performance from company to company within an industry.

Generally, GRI standards – the older of the two – cater to enterprises in general, while SASB focuses on specific disclosure standards in 77 different industries. GRI is oriented to all stakeholders, while SASB primarily deals with investor needs.

Neither framework is required in the United States, but both have been adopted by international business and nonbusiness enterprises. Sustainability reporting is mandatory in European Union (EU) countries, with GRI standards commonly used to fulfill the requirement. The standards from both organizations follow the United Nations’ 17 Sustainable Development Goals and emphasize cost-effectiveness and decision-relevance in adoption and implementation of their disclosure metrics. The standards are not static in either framework, but are reviewed and revised periodically under ongoing research projects.

A movement is underway to consolidate and coordinate sustainability reporting disclosures. GRI and SASB, along with the Climate Disclosure Standards Board, the International Integrated Reporting Council (IIRC), and CDP

Worldwide, released a joint statement8 proclaiming the sustainability reporting frameworks are complementary rather than competitive. The statement recommends that various frameworks be used together in an effort to move toward a single, comprehensive global framework to promote uniformity, comparability, and risk assessment across industries worldwide.

Also reflective of a consolidation of standards, SASB and IIRC recently announced a merger. The International Accounting Standards Board announced its intention to launch a sustainability reporting framework to go along with its IFRS financial reporting standards.

Considerations in the Choice to Report ESG Companies considering reporting ESG items must carefully evaluate the benefits and costs of this type of reporting in the context of industry trends and political climate. The cost of producing an ESG report must be weighed against the benefits, both financial and nonfinancial. Gaining a better understanding of sustainability reporting standards offers CPAs the opportunity to help clients carefully examine the framework of the different systems of reporting standards to determine which best fits the strategic vision of the company.

Robert Bloom, PhD, is professor of accountancy, Anderson Fellow, for the Boler College of Business at John Carroll University in University Heights, Ohio. He can be reached at rbloom@jcu.edu.

Mark J. Myring, PhD, is associate dean for graduate programs and strategic initiatives and alumni distinguished professor of accounting for the Miller College of Business at Ball State University in Muncie, Ind. He can be reached at mmyring@bsu.edu.

Reprinted with permission from the Pennsylvania CPA Journal, a publication of the Pennsylvania Institute of Certified Public Accountants

er.media Illustration: © iStock/peterschreib

1 Jean-Michel Sahut, Marta Peris-Ortiz, and Frederic Teulon, “Corporate Social Responsibility and Governance,” Journal of Management and Governance (June 26, 2019.) pages 901–912. https://doi. org/10.1007/s10997-019-09472-2

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2 https://opportunity.businessroundtable. org/ourcommitment 3 https://home.kpmg/xx/en/home/ insights/2020/08/global-ceo outlook-2020.html 4 Alan J. Richardson and Michael Welker, “Social Disclosure, Financial Disclosure and the Cost of Equity Capital,” Accounting, Organizations and Society (26 [7/8], 2001) pages 597–616. https://doi. org/10.1016/S0361-3682(01)00025-3

5 Baruch Lev, Christine Petrovits, and Suresh Radhakrishnan, “Is Doing Good Good for You? How Corporate Charitable Contributions Enhance Revenue Growth,” Strategic Management Journal (31 [2] 2010) pages 182–200. https://doi org/10.1002/smj.810 6 Henri Servaes and Ane Tamayo, “The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness,” Management Science, (Vol. 59, No. 5, 2013) pages 1045–1061. www.jstor.org/ stable/23443926 7 https://www.pwc.com/us/en/cfodirect/ publications/in-the-loop/sec-new human-capital-disclosure-rules.html 8 Statement of Intent to Work Together towards Comprehensive Corporate Reporting.

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Illustration: © iStock/Feodora Chiosea

Disaster Planning

in the post-COVID-19 “new normal” Patrick Hardy

The global impact of COVID-19 has required accounting practice teams around the world to adapt quickly and recognize the importance of a robust disaster plan. These plans, when properly designed and implemented provide the tools necessary to

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empower employees and management to navigate a multidimensional disaster response. Without a plan, incident firm management responses are inconsistent, confused, and lacks continuity necessary to maintain the highest service standards.

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Designing a Complete Disaster Plan A comprehensive accounting practice disaster plan at a minimum contains three major elements: The Risk Analysis, the Emergency Response Plan, and the Business Continuity Plan. Each plan represents a separate phase in the emergency preparedness cycle.

Risk Analysis - The Risk Analysis essentially asks one question: “What threats do we face?” It should identify potential threats to firm operations in the categories of natural disasters (i.e., hurricanes, COVID-19, etc.), technological disasters (i.e., power outage, HAZMAT spill) and security emergencies (i.e., terrorism, active shooters). While there is a temptation by experienced management teams to simply do this by “gut” instinct or from past experiences, the Risk Analysis should be conducted by a multi-pronged analysis of data from local, state, and federal sources. Sometimes, corporate teams do large-scale risk analyses for their entire portfolio, when each company should have a unique risk analysis conducted for each organization.

Given the size and sophistication of many portfolios, this will unquestionably require an on-site visit by an independent professional.

One of the most important elements of the Emergency Response Plan is the Crisis Communication Plan. Crisis communication should be a key priority in these plans to ensure that uniform messaging to employees, clients and the general public is developed in a way that is realistic and provides staff with the flexibility to respond to communication queries from the public.

Training, exercise, and improvement schedules should also be rigorously implemented, so that every person from seasonal staff to senior management has a consistent understanding of how the protocols are supposed to be applied in practice. Too often, management teams simply write a plan, then expect it to be followed to the letter, when we know that direct, kinesthetic trainings of staff members is required for accurate implementation. Videos and other interactive media are NOT sufficient. Ongoing, semi-annual training of staff (and more when turnover is higher) is required to verify understanding of the plan, and implementation of procedures.

Business Continuity Plan - The final piece of an accounting practice disaster plan is the Business Continuity Plan (BCP), which is a purely recovery document.

Any company will have multiple service processes (HR, information technology, etc.) that will require a comprehensive recovery examination. However, there are pieces of the BCP that should be incorporated into your Emergency Response Plan because there are elements of recovery that also fit into a firm’s initial response phase, such as recovering utilities and ensuring that generators are set to automatically respond during a blackout. BCPs are highly technical documents and should not be written by laypeople. They require technical expertise to develop operational recovery times and points that align with a metric of consequence of late recovery for both brick and mortar as well as information technology.

A disaster plan, if implemented properly, will provide management teams and their staff the tools to respond to any emergency they face as move into the COVID “new normal.”

There are many places that have hidden hazards and threats that haven’t been considered previously. For instance, prior to 2020, few people had a real grasp of the potential for a crippling pandemic, even though the federal government placed pandemics in their National Planning Scenarios as early as 2003.

Furthermore, other bacteria long known to mankind can easily create a business disruption. For instance, minor outbreaks of yersinia pestis (commonly known as the Bubonic Plague) do crop up from time to time in certain regions of the US, particularly the Southwest in Arizona and New Mexico. While seemingly innocuous, these have occasionally resulted in area-specific quarantines and closures.

Emergency Response Plan - The Emergency Response Plan is a comprehensive document covering every element of the initial response to an incident on a firm. This may be termed the “lights and sirens” phase of an emergency. It should cover evacuation, shelter-in-place, and lockdown of the firm, and how to set up an emergency leadership structure. However, the plan must also address crisis communication, utilities, worker injuries, equipment, supplies and training. Most plans cover about 20 percent of what they really need to be effective and must be improved regularly. For corporate teams, this is a multi-pronged process that is going to require site visits, training sessions, and an aggressive drill and exercise schedule to be implemented effectively.

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This means that corporate teams should ensure the person writing the plan is a Certified Business Continuity Professional or an equivalent, because a full business continuity program will include a business impact analysis, plan, Information Technology Disaster Recovery (IT/DR), critical process recovery, recovery time objectives and point objectives to align with business goals.

A corporate BCP is typically ~50 pages for a medium-sized firm. Other BCPs, such as one for a resort-size property will be much longer (100-200 pages), including an IT/DR. When the aforementioned components are not appropriately developed within a plan, incongruent and inefficient recoveries result.

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Learning the Lessons from COVID-19 Once a comprehensive disaster plan has been designed, constructed, and implemented, it must be put to the test through regular disaster exercises or through the crucible of an actual disaster. COVID-19 has provided an opportunity for many disaster plans to be activated for the first time and put under the stress of an actual emergency. No disaster plan is perfect, nor can it ever be. However, what separates average disaster plans from exceptional plans are those that adapt and improve through a rigorous lessons-learned process after each event.

COVID-19 is no different. To learn the lessons from COVID-19, management teams must do three things: Conduct Debriefings with Management and Staff – These are a series of meetings that reveal the strengths and weaknesses of the COVID-19 response. It should be thorough and cover each part of the response plan, including communication, operations, human resources, finance, and initial recovery.

For complex businesses, this process is not short, and will likely involve multiple meetings over several days. For smaller organizations, this can be as short as 20-30 minutes with two or three groups of staff. Regardless, this process should be conducted by someone totally unaffiliated with the firm. No exceptions. Management should never lead the meetings, as employees will be extremely reluctant to critique what would be perceived as their supervisor’s policies and procedures, and corporate team members can be intimidating to line staff who are simply trying to be “team players.” An outside professional should be hired to conduct these meetings and write the reports.

Complete an After-Action Report – Once the meetings are concluded, a complete report should be written by an Emergency Preparedness Specialist called an “After-Action Report.” This is a technical document that provides actionable improvement steps on what procedural, functional, and policy modifications

need to be made to strengthen the firm’s pandemic response.

Steps on plan modifications, additional training, equipment, policy adjustments, and other elements of the response should be evaluated independently by an outside specialist to ensure nothing is omitted. On a corporate level, these recommendations can run the gamut from the simple to the complex, and this requires a synthesis of the existing documents, reports on how the plan was executed, and what additional steps need to be taken to ensure a more effective response in a future pandemic.

Redraft the Disaster Plan – Once these weaknesses have been corrected, the disaster plan should be fully redrafted with these changes that have been developed. Otherwise, the lessons-learned are useless! The disaster plan will then be improved and grow in operational sophistication as these lessons are implemented into the organization. The redrafting process can be complex and will, for most corporate teams, require 3-6 months to be done at their most efficient. Approvals, best-practice implications, and other elements can play a significant part in a successful disaster plan. Disaster plans that are not updated will fall quickly into disuse and become obsolete.

Conclusion The COVID-19 Pandemic presented unprecedented challenges to accounting practices around the world. Management teams from small or large firms should develop and maintain a sophisticated disaster plan. This plan, if implemented properly, will provide management teams and their staff the tools to respond to any emergency they face as move into the COVID “new normal.”

Patrick Hardy is founder and CEO of Hytropy Disaster Management™, the largest full-service disaster management company in the US. A Certified Emergency Manager®, Certified Risk Manager® and a FEMA Master of Exercise® he has extensive experience working in the public, private and non-profit sectors in disaster management. Patrick spoke at the WSCPA Annual Meeting on June 3.

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William Simer Lifetime Achievement Award For an exemplary career of leadership in the accounting profession and the community Recognizes a current or former WSCPA member for a career of leadership and dedicated service to the accounting profession and as an exemplary role model for other CPAs.

2020-2021 WSCPA Award Winners Every year, the WSCPA honors individuals (and one company or firm) that have demonstrated their commitment to supporting the Society and maintaining the CPA's trusted and respected place in Washington State's professional community.

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William A. (Bill) Simer, CPA, recently retired as a tax partner with the Spokane office of Eide Bailly, LLP., wrapping up his public accounting career of more than 40 years.

“A leader in the profession, Bill is well-known and respected across the state through his advice to clients, help with advocacy efforts, community involvement, mentorship and providing countless opportunities for CPAs. His accomplishments, humbleness, and willingness to improve the CPA profession have been extraordinary—his contributions embody the meaning of lifetime achievement for making the profession better!” said Jared Theis, CPA, WSCPA Board Chair (2020-21).

Bill is a Past Chair of the WSCPA (2015-16) and continues to serve on several committees. He has previously received WSCPA awards for his service to the profession, including the Community Achievement Award, the President’s Award, and the Chair’s Award.

“He has served as a role model for many in our profession.

He is very passionate about advocacy, investing a tremendous amount of time and energy toward furthering our profession’s goals in both Olympia and Washington, D.C.,” said Dave Miniken, CPA, WSCPA Board Chair (2016-17).

Bill has held key leadership positions in many organizations, including the Eastern Washington University Foundation, The INNOVIA Foundation, Greater Spokane Incorporated, the Spokane Symphony and Fox Theater.

In retirement Bill has taken on a new role as an adjunct faculty member in the Masters in Tax program at Gonzaga University, and plans to pursue his hobby of racing vintage race cars in the US, UK, and Europe. He is pictured here at the 2019 Goodwood Revival with a recreation of the “Zerex Special” that he was invited to drive at the event. Bill and his wife, Reneé Rolando, live in Spokane.

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2020-2021 WSCPA AWARD WINNERS

Ronald Rauch

Bavan Holloway

Community Leadership Award

Community Leadership Award

For outstanding, lifelong civic and community service

For outstanding, lifelong civic and community service

Recognizes a WSCPA member whose respected leadership in community organizations has enhanced the image or public perception of CPAs.

Recognizes a WSCPA member whose respected leadership in community organizations has enhanced the image or public perception of CPAs.

Ronald Rauch, CPA, retired from Clark Nuber in 2018, after having served as shareholder in the firm’s Audit and Assurance Services Group. Ron has enjoyed a full career devoted to the profession and individual professionals. Ron served as chair of the WSCPA board and the AICPA National Advanced Accounting and Auditing Technical Symposium.

He was a member of numerous other committees of the AICPA and was a mentor to many professionals during his career of more than 40 years. Ron also serves on a variety of other non-profit boards.

“I have had the honor of working with Ron nearly 30 years and am proud to add my name to the long list of professionals he has mentored throughout his career. As a partner, he delivered exceptional, solutions-based client service. As a mentor, he coached hundreds of professionals both inside and outside of the firm. As a servant to the profession, he has served as WSCPA chair and countless AICPA technical committees. As a community servant, he now gives back to society through financial literacy work at the Union Gospel Mission. Ron continues to do it all with integrity and compassion,” said Tom Sulewski, WSCPA Chair (2021-22).

Ron actively serves his community as well, having previously served as chair of the Bellevue Downtown Association and as a member of the Bellevue Rotary for 14 years. He has been volunteering for several years with men and women recovering from homelessness, addiction and domestic abuse at Seattle’s Union Gospel Mission (UGM), where he teaches personal finance classes.

“Ron has completely and uniquely customized personal finance classes to address the very real, very practical, and very emotional factors surrounding the personal finances of our residents, many who, for the first time in their lives, are forthrightly addressing significant financial challenges—civil fines, destroyed credit brought on by manipulative and abusive relationships, medical debt, mismanagement,” said Glenn Olson, MBA, CPA, Major Volunteer Officer at UGM.

“Ron has brought patience, grace, understanding, humor, and truth to his classes, engaging and encouraging men and women to take control of their financial lives, a critical component on their road to recovery and restoration to the family, friends, community, and culture around them.”

He and his wife Jacquie live in Issaquah and enjoy family and travel. Here Ron takes a break from enjoying skiing at Whistler (pre-pandemic, of course).

Bavan Holloway, CPA, CGMA, CIA, CRMA, retired as the Chief Audit Executive of the Boeing Company in April 2020.

A former KPMG partner, Bavan now is taking her broad finance and audit experience in complex and highly regulated business environments to serve on various boards. She was appointed to the board of directors of TPI Composites in September 2020 and nominated to the board of directors of T-Mobile US in April 2021.

Bavan also served on the board of the Special Olympics of Washington and recently completed a term of service on the board of YWCA Seattle | King | Snohomish.

“We are immensely grateful for Bavan Holloway’s active and engaged 10 years on YWCA Seattle | King | Snohomish’s Board of Directors. Her leadership touched all levels of the organization, including speaking at our annual luncheons, mentoring through our young professionals program, and working with our People of Color Executive Council. Her continued involvement with our Strategic Planning Taskforce will help shape the future of our organization for years to come,” said Maria Chavez-Wilcox, Chief Executive Officer, YWCA Seattle | King | Snohomish.

A graduate of the University of Tulsa and the Illinois Institute of Technology, she is also a member of several organizations, including the AICPA, WSCPA, Executive Leadership Council, and the National Association of Black Accountants.

“I have known Bavan for almost two decades. She is a champion for students generally and especially for black accounting and finance students,” said Bill Reed, CPA. “She is a fantastic role model for professional women, especially black women, and for all black folks in the accounting and finance profession.

She is the epitome of making a difference that matters!”

Here Bavan shares one of her favorite tattoos.

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2020-2021 WSCPA AWARD WINNERS

DP&C Business of the Year For setting an example in the community and the profession Recognizes a company or firm for providing noteworthy support and dedication to the WSCPA and its members.

A CPA firm operating in Tacoma, Washington since 1936, DP&C is a mid-sized, local firm with deep roots in the community.

Under the leadership of owners Jason Kors, Terry Cronk, Ed Ramos, Zach Parsons and Bryce Comfort, DP&C aims to be considered a valued business partner by every client.

DP&C lives out its mission “to enhance and elevate the lives of clients, employees and community,” by maintaining a strong connection with the local community. The firm is involved with or supports 54 non-profit organizations in the South Sound area, from Palmer Scholars to the Youth Marine Foundation.

Firm leaders also encourage staff to get involved with and support the WSCPA.

“DP&C has supported the WSCPA with memberships and volunteers for many years. They are now a WSCPA Peak Firm that supports 100 percent of their eligible staff for membership,” said Monette Anderson, WSCPA Director of Membership.

“One of their partners has been a leader for the Washington CPA Foundation and the firm is now providing a diversity scholarship through our named scholarship program. This partner also served on the American Institute of CPAs’ Diversity and Inclusion Committee and brought that commitment back to DP&C.”

This commitment was an important consideration for DP&C during their recent rebranding initiative.

“The multiple colors included in our new logo were intended to represent diversity,” said Jason Cors, CPA, MS Tax, CEO, DP&C. “We love the result and believe it is a distinct visual representation of who we are.”

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Nathan Ill Outstanding WSCPA Volunteer Leader Award For active leadership and dedicated service to the Washington CPA Foundation Recognizes an active WSCPA member for outstanding service and dedication and/or innovative and inspirational WSCPA Leadership.

Nathan Ill, CPA, CFA, has been a trustee on the Washington CPA Foundation for five years and has served as the chair for the last two years. Under Nate’s leadership the board has increased scholarship funding for accounting students pursuing master’s degrees and funding in the grants program to support organizations’ efforts to increase diversity in the CPA pipeline.

“Nate encourages trustees to connect with colleges and spread the word about scholarships and grants around the state. He has been a thoughtful and connected volunteer,” said Monette Anderson, WSCPA Director of Membership and staff liaison to the Washington CPA Foundation.

Nate is a Vice President in the Seattle office of Goldman Sachs and has been advising both institutional and private clients on portfolio investment strategy and implementation since he joined Goldman Sachs in 2012. Prior to joining Goldman Sachs, he was with Deloitte & Touche’s audit practice serving publicly-traded as well as privately-held companies in the greater Seattle area.

Nate is a graduate of the University of Washington’s Foster School of Business with a degree in business administration and concentrations in accounting and finance. In addition to his involvement with the WSCPA Foundation he is a member of the finance committee for the United Way of King County, a member of the investment committee for the Seattle Repertory Theatre and a mentor for students in the Rainier Scholars program. He spends his free time with family, playing golf or trying out a new recipe in the kitchen.

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2020-2021 WSCPA AWARD WINNERS

Ursula Perkins

Brooke Stegmeier

Outstanding WSCPA Volunteer Outstanding WSCPA Volunteer Leader Award Leader Award For active leadership in advocacy and dedicated For active leadership and dedicated service to service to the WSCPA the WSCPA Recognizes an active WSCPA member for outstanding service and dedication and/or innovative and inspirational WSCPA Leadership.

Recognizes an active WSCPA member for outstanding service and dedication and/or innovative and inspirational WSCPA Leadership.

Ursula Perkins, CPA, has been a leader in her community for the WSCPA for many years. She served on the local Southwest Chapter, ensuring events were planned and held in the area. A few years ago, Ursula accepted a position on the CPAPAC and increasingly has supported WSCPA advocacy efforts.

“She not only ensures the representatives and senators in her area are connected with and informed, but she also has taken personal time off of work to attend our Hill Day,” said Kimberly Scott, WSCPA President & CEO.

Ursula is a Senior Manager at Opsahl Dawson in Vancouver.

She joined the firm in 2010 and manages the individual tax department and specializes in individual, trust, and estate tax returns. She works with small businesses and also has prior experience with other CPA firms and in the banking industry.

Ursula enjoys being a mentor with the Washington State University Vancouver Carson Coaching Program and serves on the Vancouver Public Schools Foundation Advisory Council.

Ursula loves spending time with her husband Shawn, adult children, and two granddaughters.

One of Ursula’s favorite events is the WSCPA Women’s Leadership Summit. She is pictured here at the 2019 Summit.

Brooke Stegmeier, CPA, MHA, CMPE, has been an active volunteer with the WSCPA, participating in a number of committees during the last eight years. Most recently, she stepped into a leadership role planning the Not-For-Profit Conference. She has also engaged in our advocacy work, connecting with her local representatives. The last three years she has served as an active scholarship reviewer as well.

“Brooke actively looks for opportunities to serve the WSCPA and the profession. This eagerness to serve has awarded her an appointment on the Washington State Board of Accountancy,” said Kimberly Scott, WSCPA President & CEO.

Brooke currently is Finance Director of Elmhurst Mutual Power and Light and has nearly 25 years of operations, finance, HR, analysis experience, primarily in the healthcare industry. She has held directorships with several hospitals in the Seattle area, working to improve organizational structures, discover and analyze underlying business needs, and create dynamic solutions for complex problems.

She joined Elmhurst as the Finance Director in early June and is looking forward to learning a new industry.

When not working on client projects, Brooke keeps busy managing the social media accounts of a poodle, five chickens and three noisy ducks. Here she is with one of her chickens, Wimpy.

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2020-2021 WSCPA AWARD WINNERS

Nick Braun-Lopez

Arsen Djatej

New Professional Award

Special Award

For passion, service, and commitment to the WSCPA

For commitment and support of the CPA profession

Recognizes an active WSCPA member who has been a CPA for fewer than ten years for outstanding WSCPA leadership.

Recognizes an individual who is not a CPA but has supported or promoted the activities of CPAs and the WSCPA.

Nick Braun-Lopez, CPA, CMA, has been serving on the WSCPA Tacoma Area Chapter Board since 2017. He has served as secretary and on the outreach committee for the chapter. During the past year, he has led multiple virtual events for the chapter and has invited and engaged other chapters around the state.

Arsen Djatej, PhD, is Department of Accounting Professor of Accounting with Eastern Washington University. A WSCPA educator member for seven years, he strongly encourages his students to connect with and join the WSCPA. He is actively involved in the Spokane Area Chapter as well, serving on the board since 2014.

"For many years Arsen has partnered with the WSCPA to hold the E Clair Daniels symposium, an event that connects students and CPAs in the Spokane community," said Monette Anderson, WSCPA Director of Membership. "In 2020 he took the extra steps needed to turn the symposium into a successful virtual event."

Arsen’s teaching interests include financial accounting (GAAP), intermediate accounting and advanced accounting. He also has experience teaching classes on international financial accounting (IFRS), accounting information systems, management accounting, international business, and global accounting environment.

Among his many accomplishments, he restructured the EWU undergraduate accounting program, designed the Master of Professional Accounting program, and established the Accounting Advisory Board. He has also engaged in significant outreach efforts to accounting firms, as well as the regional and national accounting communities, and generated numerous internship and employment opportunities for students.

“Nick was the Tacoma Chapter’s MVP this last year! Rocking a Bob Ross-style wig, he went above and beyond as he led the chapter’s The Joy of Painting (and Sipping) networking events. In a year where imagining and creating engaging virtual events was not only challenging but completely new, Nick’s energetic and supportive personality helped his chapter become a trailblazer,” said Daniel Fleming, WSCPA Member Engagement Specialist. “Kudos to Nick and the Tacoma Chapter Board!”

Nick is a Senior Accountant for Quantum Corporation, where he has worked since 2019. As part of the Corporate Accounting team, he assists with month end close, oversees German subsidiaries, and manages the Fixed Asset subledger.

A graduate of Pacific Lutheran University, Nick previously worked with SOX auditing and international accounting in the healthcare industry.

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2020-2021 WSCPA AWARD WINNERS

Monette Anderson Chair's Award

Bill Reed President & CEO Award

For dedication to the growth of membership and For leadership and dedication to accounting students diversity, equity, and inclusion efforts at the WSCPA and the CPA profession Selected by the Chair of the Board of Directors, this award honors a WSCPA member who has provided extraordinary commitment and service to the WSCPA.

A graduate of San Diego State University, Monette Anderson has more than 15 years of experience managing programs for non-profit organizations, including Public Broadcasting Service (PBS) and the Make-A-Wish Foundation.

Monette managed the WSCPA’s accounting careers program for six years before stepping into the role of Director of Membership for the WSCPA. Currently, she also works with the Washington CPA Foundation administering more than $500,000 in annual scholarships and a relatively new grant program focusing on pipeline diversity for the profession.

Monette has served on boards and held volunteer roles supporting both diversity and the accounting profession.

“As chair this past year, I had two primary and interrelated objectives to improve membership and enable the Society to pursue more diversity, equity, and inclusion initiatives,” said Jared Theis, CPA, WSCPA Chair (2020-21). “For years we’ve had a steady decline in our membership numbers, and the demographics of our profession and membership have not substantively changed. During the last year, Monette Anderson has strongly focused on these two objectives, bringing new, fresh ideas to the table and helping them come to fruition. Her out-of-the-box thinking about how we can engage with our members and drive action for DEI has led to the introduction of new programs to help us change the status quo and turn that tide. I want to recognize her efforts and her successful year, which will also have a long-lasting, positive impact on the Society and our members.”

Monette enjoys cooking and documenting her family’s daily life and travels through photography.

Here, she is with her son, Tate, at Jasper National Park.

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Recognizes an individual (or organization) who has made a significant contribution to the success of the profession.

Bill Reed, MBA, CPA, CGMA, CFF, CFE, PI, PICT, CICA, has been a business consultant and instructor at Everett Community College (EvCC) for more than 18 years.

“Bill has been an advocate for the CPA profession for years by encouraging his students to pursue their licenses as well as working to increase diversity in the profession,” said Kimberly Scott, WSCPA President & CEO. “Bill may have taken a break from teaching this year, but he is far from done working to make the profession better.”

Prior to becoming tenured at EvCC, Bill worked in the private sector for over 20 years in a variety of senior level positions, including controller and treasurer for mid-size corporations.

Bill, who recently completed a three-year term on the WSCPA Board of Directors, has been actively engaged in community work for more than two decades. He is the former co-founder and co-chair of the EvCC Students of Color Career Conference, an event that allows middle and high school students from Snohomish County to connect with professionals of color.

Bill is the former program director for the Youth Development Program (YDP) operated by the partnership of the Snohomish County Branch of the NAACP and EvCC. He also is Founder and Principal Fundraiser of several scholarship funds focused on aiding students of color.

Bill has received a number of honors. He was awarded the EvCC You Made a Difference Award in 2019, the “Advancing the Dream Award” at Central Washington University in 2009, and in 2008, he was voted Exceptional Faculty at EvCC.

Bill and his wife Marcella have five children and three grandchildren. Bill enjoys listening to blues and jazz music and recently began learning to play the guitar.

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Upcoming CPE A selection of WSCPA CPE events scheduled August - October are listed.

To view the hundreds of course listings and complete details, please visit the CPE & Event Catalog at wscpa.org/cpe.

Bottles, Brews & Buds Conference Webcast, August 5-6 8 Credits

Working in wine and spirits? Accounting for ale? Curious about cannabis? Let us help you craft your practice by demystifying the risks and rewards of these rapidly growing industries at the 2021 Bottles, Brews & Buds conference! Customize your conference with multiple CPE tracks.

Bottles, Brews & Buds is presented by the Alaska, Colorado, Hawaii, Idaho, Montana, Oregon, and Washington Societies of CPAs.

Farm Tax Conference Webcast, August 12 8 Credits

Get up-to-speed on critical ag issues at the WSCPA Farm Tax Conference. This year’s virtual conference will help you recognize unique tax opportunities and pitfalls for taxpayers in the agricultural industry. Learn about the income and deduction items unique to agribusiness producers as well as recent tax development affecting agribusiness. Join us as Paul Neiffer shares his wealth of agribusiness knowledge.

Women's Leadership Summit

Additional Upcoming Conferences

September 23 | Webcast | 8 Credits

Diversity, Equity & Inclusion Conference September 24 | Webcast | 8 Credits

Pacific Tax Institute October 21-22 | Live & Webcast | Up to 16 Credits

The Washington Society of CPAs is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of group live and group-internet-based continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org For more information regarding refunds, complaints, program cancellations or other policies visit www.wscpa. org/cpe/cpe-policies or call 425.644.4800

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Register at www.wscpa.org/cpe

EDUCATION AND EVENTS

Online CPE DATE

COURSE TITLE

8/4-5

2021 Personal Financial Planning Conference WEBCAST presented by the Colorado Society of CPAs

8

8/5-6

Bottles, Brews & Buds Conference WEBCAST

8

8/6

Washington Ethics and New Developments 2021 WEBCAST

4

8/11

Advisory Services "How To" 2021 Webcast Series - Cash Management

1

8/12

Farm Tax Conference 2021 WEBCAST

8

8/16

2021 Rules, Regulations, and Ethics for CPAs in Washington by Thomas Neill (A WA Requirement) WEBCAST

4

8/18

Advanced Topics in a Single Audit WEBCAST

8

8/19

Financial Reporting for Not-for-Profit Entities WEBCAST

4

8/19

Governmental and NFP Accounting and Auditing WEBCAST

4

8/23

Evaluating Fraud Risk in a Financial Statement Audit WEBCAST

4

8/23

Fraud Basics: Protecting the Company Till WEBCAST

4

8/24

Financial Reporting Implications of the COVID-19 Pandemic WEBCAST

4

8/24

Statement of Cash Flows: Preparation Guidance and Presentation Illustrations WEBCAST

4

8/25

Advisory Services "How To" 2021 Webcast Series - Profit Maximization

1

8/27

Leadership Mastery 2021 Webcast Series - Fundamentals of Tactical Management-CoachingLeadership

2

9/3

Washington Ethics and New Developments 2021 WEBCAST

4

9/8

Advisory Services "How To" 2021 Webcast Series - Buy-ology: The Science of Effective Expense Management

1

9/9

Advanced Financial Skills WEBCAST

4

9/9

Controller's Update: Today's Latest Trends WEBCAST

4

9/9

Professional Conduct & Ethics - AICPA and Washington Board CPA Regulatory Update - 2021 WEBCAST

4

9/10

Change the Way You Work: Success as a Virtual CFO WEBCAST

4

9/10

Risk, Cost, and Cash Management for Controllers and Financial Managers WEBCAST

4

9/16

Finance Transformation - What It Means for the CFO WEBCAST

2

9/16

The New Auditors' Reporting Standards WEBCAST

8

9/16

Washington Tax Audits WEBCAST

1

9/16

Washington Taxation for Service Businesses WEBCAST

2

9/17

Preparation, Compilation and Reviews WEBCAST

4

9/20

CFO Series: Key Tax Issues Part 1 WEBCAST

4

9/20

State Tax Nexus FAQ: Frequently Awkward Questions WEBCAST

2

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CREDITS

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EDUCATION AND EVENTS

Register at www.wscpa.org/cpe

Online CPE DATE

COURSE TITLE

9/22

Washington Sales Tax WEBCAST

2

9/23

Women's Leadership Summit WEBCAST

8

9/23

Real Frauds Found in Not-for-Profits WEBCAST

4

9/23

Washington Ethics and New Developments 2021 WEBCAST

4

9/23

What is the Finance Value Chain and How Can We Improve It WEBCAST

2

9/23

Yellow Book: Application of GAGAS Principles WEBCAST

4

9/24

Advanced Auditing of HUD-Assisted Projects WEBCAST

8

9/24

Diversity, Equity and Inclusion Conference 2021 WEBCAST

8

9/27

Leadership Mastery 2021 Webcast Series - Coaching for Impact: Resolving Conflict and Confrontation

2

9/30

What is Disruption and How is it Impacting the Finance Function? WEBCAST

2

10/1

Governmental Auditing Update WEBCAST

4

10/1

Not-for- Profit Accounting Update WEBCAST

4

10/1

Washington Ethics and New Developments 2021 WEBCAST

4

10/4

Financial Reporting Update for Tax Practitioners WEBCAST

8

10/5

Winning the Fraud Battle in the 21st Century: Prevention and Detection WEBCAST

8

10/7

Finance Data Analytics for Business Results WEBCAST

2

10/13

Construction Contractors: Accounting and Auditing WEBCAST

8

10/14

Annual Update for Accountants and Auditors WEBCAST

8

10/15

Common Yellow Book and Single Audit Deficiencies WEBCAST

4

10/18

The Complete Guide to Washington Death Taxation WEBCAST

8

10/19

Traps and Pitfalls in Estate Planning WEBCAST

8

10/20

Professional Conduct & Ethics - AICPA and Washington Board CPA Regulatory Update - 2021 WEBCAST

4

10/21

Reviewing Individual Tax Returns: What Are You Missing? WEBCAST

4

10/21

Reviewing Partnership Tax Returns: What Are You Missing? WEBCAST

4

10/22

Advanced Income Tax Accounting WEBCAST

8

10/23

Washington Ethics and New Developments 2021 WEBCAST

4

10/25

CFO Series: Be the Best Part 1 WEBCAST

4

10/25

Practical Tax Strategies: Sales and Purchases of Businesses WEBCAST

2

10/26

Current and Upcoming FASB Issues WEBCAST

2

10/26

Current Audit Environment and ASB Activity WEBCAST

2

10/26

Lightning Fast Tax Depreciation and Partial Dispositions WEBCAST

2

32

The Washington CPA Summer 2021

CREDITS

www.wscpa.org

Register at www.wscpa.org/cpe

EDUCATION AND EVENTS

Online CPE DATE

COURSE TITLE

10/27

Practical Tax Strategies: Picking the Best Type of Entity for New Businesses WEBCAST

2

10/27

You Have a SOC 1 Report - Now What? WEBCAST

4

10/28

Leadership Mastery 2021 Webcast Series - Performance Execution: Long-Term Planning in a Short-Term World

2

10/28

Self-Employment Tax for LLC's and Section 199A QBID WEBCAST

2

10/28

Washington Taxation for Service Businesses WEBCAST

2

In-Person CPE

CREDITS

Wish you could network with fellow attendees when you take CPE? Join us for informal networking while viewing these webcasts, with a video stream of the instructor.

DATE

COURSE TITLE

LOCATION

CREDITS

9/9

Advanced Financial Skills

WSCPA

4

9/9

Controller's Update: Today's Latest Trends

WSCPA

8

9/10

Change the Way You Work: Success as a Virtual CFO

WSCPA

4

9/10

Risk, Cost, and Cash Management for Controllers and Financial Managers

WSCPA

4

9/16

The New Auditors' Reporting Standards

WSCPA

8

9/20

CFO Series: Key Tax Issues Part 1

WSCPA

4

9/27

CFO Series: Key Tax Issues Part 2

WSCPA

4

10/1

Governmental Auditing Update

WSCPA

4

10/1

Not-for-Profit Accounting Update

WSCPA

4

10/4

Financial Reporting Update for Tax Practitioners

WSCPA

8

10/5

Winning the Fraud Battle in the 21st Century: Prevention and Detection

WSCPA

8

10/13

Construction Contractors: Accounting and Auditing

WSCPA

8

10/14

Annual Update for Accountants and Auditors

WSCPA

8

10/18

The Complete Guide to Washington Death Taxation

WSCPA

8

10/19

Traps and Pitfalls in Estate Planning

WSCPA

8

10/20

Professional Conduct & Ethics - AICPA and Washington Board CPA Regulatory Update - 2021

WSCPA

4

10/21

Reviewing Individual Tax Returns: What Are You Missing?

WSCPA

4

10/21

Reviewing Partnership Tax Returns: What Are You Missing?

WSCPA

4

10/22

Advanced Income Tax Accounting

WSCPA

8

10/27

Conducting a Remote Audit

WSCPA

4

10/27

You Have a SOC 1 Report - Now What?

WSCPA

4

www.wscpa.org

The Washington CPA Summer 2021

33

CLASSIFIED ADS Announcements

Mergers & Sales

FBCPA Group PS, Inc. is excited to announce team member, Aiko M. Durant, is the newest CPA on our team having recently passed all four parts of the exam and meeting the Washington State licensing requirements. Aiko received her Bachelor’s Degree in Accounting from Seattle Pacific University.

She has over five years of experience working in public accounting with a very diverse background of clients including large national corporations, closely held businesses and foreign tax matters.

ADVERTISE WITH THE WSCPA!

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 425.454.3052, 509.907.9406, or www.ibainc.com Practice for Sale. Small practice, 15 tax, 1 bookkeeping 2021 Gross $15400, will sell for $28000 Mainly WA, 5 clients out of state. Contact Millsfinancial@comcast.net Products & Services

Detailed advertising information is available online at wscpa.org/classifieds.

Contact Sharon Olene-Marander at smarander@wscpa.org for more information.

Mercer Island Tax Practice (1157): Private Practice Transitions is assisting with the sale of a client-focused tax practice located in Mercer Island, Washington. The Practice was established in 2010 and focuses entirely on tax prep for both individuals and businesses. The Practice is owner-operator and has approximately 290 active clients as of June 2021. With an incredibly high percentage of Seller’s Discretionary Earnings (SDE) to Gross Revenue (74% in 2020), this is a great opportunity for the right buyer. If you are interested in growing your existing tax practice by acquisition, call us at 253.509.9224 or send an email to info@privatepracticetransitions.com, include “1157 Mercer Island Tax Practice” in the subject line.

Thriving Seattle Tax Practice w/ YoY Growth (1156): Private Practice Transitions is assisting in the sale of a thriving tax practice located in North Seattle. For more than 7 years, the practice has offered a wide range of tax preparation, consulting and bookkeeping services to many clients. The firm has an impeccable reputation for providing excellent customer service which has resulted in a loyal client base producing many word-of-mouth referrals. As of June 2021, the practice has approximately 325 active clients, representing over 350 tax returns. With incredibly strong weighted projected Seller’s Discretionary Earnings (SDE) of over $480,000, you don’t want to miss this great opportunity! If you are interested in a turn-key practice focused on tax preparation in Seattle, call us at 253.509.9224 or send an email to info@privatepracticetransitions. com, include “1156 Thriving Seattle Tax Practice w/ YoY Growth” in the subject line.

34

The Washington CPA Summer 2021

Need Help Marketing Your Firm? Consistency is key to your digital marketing, but many firms do not have the capacity or experience to implement an effective digital marketing strategy. Our team specializes in helping CPA firms grow and scale their businesses through digital marketing. Benefits include: increased revenue, more time in your day, optimized digital marketing. Our promise to you: no pushy sales tactics, and no overpromising and underdelivering. Book a free, no-hassle call today! https://calendly.com/get-smarketer/ discovery-call.

Profitable, Trusted King County Tax Practice (#1149): Private Practice Transitions is assisting in the sale of a highly regarded and profitable tax practice located in King County, Washington. For more than 17 years, the practice has offered a wide range of tax preparation and consulting services to small businesses, individuals, and families. The firm has an impeccable reputation for providing excellent customer service which has resulted in a loyal client base producing many word-ofmouth referrals. As of April 2021, the practice is working with approximately 500 active clients, representing approximately 650 tax returns. With strong weighted projected Seller’s Discretionary Earnings (SDE) of over $309,000, you don’t want to miss this great opportunity! If you are interested in a turn-key practice focused on tax preparation in King County, call us at 253.509.9224 or send an email to info@privatepracticetransitions.com, include “1149 Profitable, Trusted King County Tax Practice” in the subject line.

Office Space Small Bookkeeping office in Bellevue has one office available for immediate move-in. Perfect for bookkeeper or CPA. Approximately 100 square feet on the second floor. Quiet, clean with windows that looks out to a green space. Internet included.

On-site parking available. Please email for an appointment, kclark@psbm.net.

Professional Office Space for Lease at Northgate.

493 sf, with two offices and waiting area. Full-length windows. $950/mo NNN. Prime location, next to Northgate Mall and walk to Light Rail station. Easy I-5 access. Street signage on 5th Ave. Convenient parking. Move-in incentive. Call 206-660-4965 for showing.

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 other organizations that need your help online at wscpa.org under community.

AAUW-WA Special Projects Fund AMA Puget Sound, Seattle Arivva Center for Arts & Technology Cedar River Montessori School Facing Homelessness Helping Link / Môt Dâu Nôi The Max Foundation Tilth Alliance

Turnkey Snohomish County CPA Firm (#1162): Private Practice Transitions is assisting a client with the sale of an established Tax and Bookkeeping firm well-known for its customer service, tenured staff, and excellent results. Located in Snohomish County, the firm has six (6) staff, approximately 450 active clients, and is completely turnkey and ready for new ownership. Income tax preparation makes up for 83% of the firm’s business with the remaining 17% coming from bookkeeping and payroll services. With weighted gross revenues over $560,000 and weighted Seller’s Discretionary Earnings (SDE) of over $215,000, you don’t want to miss out on this great opportunity. Call us at 253.509.9224 or send an email to info@privatepracticetransitions. com, with “#1162 / Turnkey Snohomish County CPA Firm” in the subject line.

Bend, Oregon Tax Practice (#1163): Private Practice Transitions is assisting in the sale of an established tax practice located in Bend, Oregon. Since 2001, the practice has offered high quality tax preparation and planning services to the Deschutes County area. The firm is owneroperator with a historical revenue by service breakdown of 93% tax prep/tax planning and 7% payroll. With approximately 300 active clients representing 308 tax returns in 2020, this is a great opportunity for the right buyer to expand his/her existing practice and or venture out on their own. If you are interested in this opportunity, call us at 253.509.9224 or send an email to info@ privatepracticetransitions.com, include “1163 Bend, Oregon Tax Practice” in the subject line.

www.wscpa.org

CLASSIFIED ADS (WA1154) Olympia CPA-Tax Practice: Established in 2011 and using Drake, QuickBooks, MS Office.

The service mix consists of approximately 820 individual tax returns with an average fee of $425 per return; 90 business tax returns with an average fee of $1,400 per return; and 10 other business tax returns with an average fee of $550 per return.

(WA1153) Spokane Valley CPA Practice: Established in 1974 and using CCH, Axcess (Full Suite), and Engagement (For Financial Statements). The service mix consists of approximately 110 bookkeeping clients generating $472,000 in revenue; 460 individual tax returns with an average fee of $924 per return; 305 business tax returns with an average fee of $2,492 per return; 57 business tax returns with an average fee of $719 per return; $56,000 in revenue for 3 clients is generated via reviews (no audits); and $138,661 in revenue is generated via consulting, acquisitions, business sales, etc.

(WA1152) Vancouver CPA Practice: Established in 2002 using Drake and QuickBooks. There are approx. 57 bookkeeping clients generating $197,000 in revenue; 225 individual tax returns with an average fee of $387 per return; 110 business tax returns with an average fee of $382 per return. $106,000 +/- in revenue is generated via payroll.

(WA1151) Bellingham CPA-Tax Practice: Established in 2002 using Drake software. The service mix consists of approx. 200 individual tax returns with an average fee of $567 per return; 62 business tax returns with an average fee of $1,209 per return; 7 other business tax returns with an average fee of $635 per return. $7,466 +/- in revenue is generated via tax planning and misc. accounting services, etc.

(WA 1149) Everett (Snohomish County): This CPA practice for sale renders professional services in the areas of Income Tax and Write Up. The revenues for these sources of revenue are 57% and 39% respectively. The balance of the revenues consists of Compiled Financial Statements of 4%. One of the most important qualities of this firm is a strong staff that assists in providing these professional services to a varied client base. The practice has continuously

Maria Wasserman: 888-783-7822 X3 Maria@APS.net | WWW.APS.net

invested in technology and is equipped to provide appropriate services to the client base. Any firm seeking a presence in Snohomish County or a firm looking to move to the next level of gross revenues will do well with this solid base of clients and the opportunity this firm provides.

(WA 1148) Whidbey Island Area: This CPA practice has it all meaning that all the traditional services of a CPA practice are rendered by this firm. The firm is located on the beautiful Whidbey Island area and comes with an excellent reputation. The firm has long-term employees who assist the Seller in the rendering of these services. Further, these employees require little in the way of supervision and readily accept new challenges. All these qualities allow for worry free time out of the office for the Seller. The revenues for this practice are Income Tax 52%, Write Up 30%, Audits and Reviews 9%, and the balance is Consulting equaling 9%. This practice offers all these qualities plus the opportunity for rapid growth due to an underserved client community. All of this from a Seller willing to assist in the transition of the practice and who will consider any reasonable offer provided the Buyer has excellent credit, collateral, coupled with a significant down payment.

(WA 1147) South Seattle: This CPA practice for sale is an extraordinary opportunity for a sole practitioner or firm to add a solid group of audit clients to their practice. The firm has a niche specialty auditing practice focusing on Labor Organizations and Employee Benefit Plans. The client base is very stable due to the specialized nature of the services rendered.

Further, the clients are split approx. one half on December 31 and the balance on June 30 making for a balanced workload. The last but not the least quality of this practice is the Net Cash Flow which is an eye popping 86% annually. Any buyer would be hard pressed to find a better acquisition target

(WA 1145) Marysville/Everett Area: This tax-based CPA firm is for sale. The practice revenue mix is approx. 71% Income Tax with Write Up being the balance. The firm has a flex staff that assists the Seller with the busy season workload. Otherwise, the practice is operated by the owner in the day to day operation of the firm. This firm fits a variety of Buyers by having a solid growth and revenue potential whether as a starter practice or an excellent addition to a new or existing practice looking to make a jump to the next level of revenue. All of this is found in a firm made strong by the excellent service provided by the Owner. To assist in the sale, the Seller will provide financing but will require excellent credit and collateral be a part of the transaction.

(WA 1143) Centralia/Chehalis/Olympia Area: This CPA tax practice is for sale. The firm revenues are 100% income tax preparation providing the opportunity to grow by either adding write up services or continuing the rapid growth experienced in tax services. The profit pf the practice is excellent with approx. 75% pf fees being realized by the owner. In addition, the fees are excellent and allow for this firm to fit nicely into any practice regardless of the size of the firm. The practice is an ideal opportunity for any individual or firm looking to start or expand a firm with little to no changes.

(WA 1133) North East Washington/ Stevens County: This CPA firm located in North East Washington is a tax and accounting practice with a small amount of write up during the year. The practice revenues consist of income tax preparation and consulting 97% and write up 3%. The firm’s fee structure is excellent with realization rates that are the equal of any firm regardless of size. The strength of the firm is found in the cash flow to the owner that is well above the norm reflecting the excellent management practices of the Seller. This firm is the perfect fit for a professional looking for an excellent opportunity coupled with a pace and style of life that is not big city. When combined with a Seller who seeks to provide a good transition, this firm provides opportunity that many seek but few find in moving to ownership.

Visit the WSCPA Job Board!

Job seekers, peruse the listings and find your next big break.

Looking for talent? The WSCPA Job Board receives hundreds of visitors a month, all looking for new and exciting career opportunities. Post your opening and be seen by some of Washington's finest finance professionals.

Learn more at wscpa.org/job-board.

Looking to fill a volunteer position? www.wscpa.org

The WSCPA Volunteer Opportunities page is a complimentary service for bona fide not-for-profit organizations in need of pro bono work by a CPA, or looking for CPAs to serve on their boards of directors. Submit a free listing for your bona fide non-profit organization. Learn more at wscpa.org/volunteer.

The Washington CPA Summer 2021

35

WE’VE GOT YOUR BUSINESS. AND YOUR BACK. We take a more personal approach to business lending.

At Columbia Bank, we care as much about your business as you do. That’s why our lenders take the time to truly understand your business needs, then work closely with you every step of the process, through closing and beyond. So you can feel good that you’re getting the best loan for your business, and for you. Visit ColumbiaBank.com.

Member FDIC

Equal Housing Lender

PEAK FIRMS

WSCPA PEAK FIRMS The WSCPA Peak Firm program recognizes and awards special benefits to firms that sign up 100% of their eligible staff for WSCPA membership. Being a Peak Firm establishes you as a leader in the profession and provides an array of discounts and benefits.

Learn more and enroll your firm at wscpa.org/peak-enroll

NEW PEAK FIRM APPOINTEES

EXISTING PEAK FIRMS Hellam Varon & Co Inc PS

Nicholas Knapton PS

Bader Martin PS

HMA CPA PS

Norris Lutkewitte PLLC

Brantley Janson

Hunt Jackson PLLC

Opsahl Dawson PS

Clark Nuber PS

Hutchinson & Walter PLLC

Rettig Flyte Co

Cordell Neher & Co PLLC

Jacobson Jarvis & Co PLLC

Ryan Jorgenson & Limoli PS

Dwyer Pemberton & Coulson PC

Johnson Stone & Pagano PS

Smith & DeKay PS

Falco Sult & Co PS

King & Oliason PLLC

StraderHallett PS

FBCPA Group PS Inc

Luby & Thomson PLLC

Sweeney Conrad PS

Finney Neill & Co PS

Martin Bircher Thompson PC

The Doty Group

Greenwood Ohlund & Co CPAs

McDevitt & Duffy PS

The Myers Associates PC

Hagen Kurth Perman & Co PS

Moss Adams LLP

Werner O'Meara & Co PLLC Photo: © iStock/lightphoto

Alegria & Company PS

www.wscpa.org

The Washington CPA Summer 2021

37

ADVOCACY

Advocacy Moving Forward Mike Nelson The WSCPA Advocacy Team has been hard at work in 2021 so far. The Legislative Session started in January and due to COVID-19 it was the first remote session in state history. Not only was this a challenge with technology and processes, but it also meant legislators needed to prioritize their top issues.

Things moved slower and quicker at the same time. Fewer bills were introduced, but they sometimes moved forward in record pace.

Legislative Session One of the WSCPA’s priority bills was sponsored by Representative Amy Walen (D-Kirkland) which would exempt Paycheck Protection Program (PPP) and other government loans from B&O and some other taxes. This was very important to make sure that businesses which received assistance during the pandemic could use all of that money to navigate the pandemic.

The state’s budget outlook continued to look more and more positive as we moved into February and March, until the deficit that was projected last summer when the COVID-19 restrictions first went into place was entirely erased. This meant that the focus of tax policy became addressing the state’s overall regressive structure. The key tax legislators passed to try and address this was a capital gains tax that will go into effect in 2022. When the Legislature adjourned in April they had adopted the largest state budget in history at $59 billion over the next two years.

After years of work building relationships and trust with legislators, the WSCPA Government Affairs Committee received a record number of requests from legislators during the session for our CPAs’ administrative feedback on a variety of tax proposals that they were developing.

Summer and Fall 2021 Now that the legislative session is over, we have already switched gears to collaborating with the Washington State Board of Accountancy (WBOA) on rule changes as well as participating in work groups and communicating with legislators.

The WBOA is already drafting rules to make Washington ready for the new exam with CPA Evolution. This will be a simple but

38

The Washington CPA Summer 2021

necessary modification for when the new exam rolls out in the next few years. They will also need to draft rules for the new non-compliance with laws and regulations (NOCLAR) standards that are expected to be finalized in the coming months.

The Advocacy Team is also participating in the Tax Structure Work Group. This group will be holding public meetings across the state this year as they look at ways to fundamentally change the tax system in our state to rely less on the state sales tax and the B&O tax.

Upcoming Legislation and Events We will also continue meeting with legislators to help them better understand the profession and what CPAs do. This will also help lay the groundwork for legislation we will be working on next year with the WBOA. This legislation would create a new license status in Washington state titled “CPA-inactive.”

This would help bring us into parity with other states across the nation. Current certificate holders who have not completed the experience requirements to become licensed would be transitioned to the CPA-inactive license status.

By creating this new status, a new option would also be available to current active CPA licensees who prefer an alternative to the retired or lapsed statuses. By coming into alignment with other states around the nation and giving more options to both certificate holders and licensees, this bill would help move Washington into a positive direction for the future.

Now is also the time to start preparing for WSCPA’s Hill Day 2022 when we will hopefully be taking a group a CPAs to Olympia to meet with legislators in January. Stay on the lookout for details as we get closer. If you have any questions or would like to get involved in a different way, please reach out to me directly.

Mike Nelson is the WSCPA Manager of Government Affairs.

You can contact him at mnelson@wscpa.org.

www.wscpa.org

Periodicals postage paid at Bellevue WA and additional mailing offices 902 140th Ave NE Bellevue WA 98005-3480

CLEAR

AREA

No matter your specialty, we’ve got a conference for you!

Explore WSCPA Conferences at wscpa.org/summercpe BOTTLES, BREWS & BUDS CONFERENCE

AUGUST 5-6 | WEBCAST | 8 CREDITS

FARM TAX CONFERENCE AUGUST 12 | WEBCAST | 8 CREDITS