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THE WASHINGTON CPA
FALL 2024
www.wscpa.org • memberservices@wscpa.org
Tel 425.644.4800
170 120th Ave NE Ste E101 Bellevue, WA 98005
BOARD OF DIRECTORS
Sarah Funk Chair
Joel Williams Vice Chair
Ed Ramos Treasurer
Richard Burger Mackey Secretary
Andrew Brajcich Immediate Past Chair
Kimberly D. Scott President & CEO
Jerrilyn Bogart
Jamie Hueners
Writu Kakshapati
Michaela Kay
Kelly Nelson
Ursula Perkins Liz Redmond Jillian Robison
Scott Rodgers David Togami
CHAPTER BOARD CHAIRS
Marcie McAllister Everett Area
TBD Seattle/Bellevue Area
Kairi Roberts Spokane Area
Nick Braun-Lopez Tacoma Area
TBD Tri-Cities Area
Canada Segura Yakima Area
Wade Helms Yakima Area
MAGAZINE PRODUCTION
Jeanette Kebede Editor
Jennifer Johnson 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.
The Washington CPA is published quarterly by the Washington Society of Certified Public Accountants, 170 120th Ave NE Ste E101, Bellevue, WA 98005. $12 of members’ annual dues goes toward a subscription to The Washington CPA
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Cover and Contents Graphics: © iStock/andrejco, © iStock/Alexandr Zakharov
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Send address changes to The Washington CPA, c/o WSCPA, 170 120th Ave NE Ste E101, Bellevue, WA 98005.
From Passion to Purpose: How CPAs Can Make a Difference through Volunteerism From Deal to Ledger: Essential Considerations for the Financial Reporting of Income Taxes in
WSCPA Award Nominations
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. Do you know someone who fits this description? Nominate a superstar for the WSCPA Lifetime Achievement or Community Leadership Award by December 31 at wscpa.org/nominate.
A Call for Nominations: WSCPA Board of Directors
The Board Governance Committee is now accepting nominations for the 2025-2026 Board of Directors. Do you know someone who has been involved with the WSCPA and whose leadership could contribute to the future of the organization? Nominate them to serve on the board!
To submit a nomination, contact Cara DiCostanzo, Executive Assistant and Governance Administrator, at cdicostanzo@wscpa.org. Nominations are due by October 31
Have you met your 20-hour CPE Requirement for 2024?
Individuals holding an active CPA license need to complete a minimum of 20 hours of CPE per year. Active licensees need to complete a total of 120 hours of CPE, including a Washington State Board of Accountancy approved ethics course, within their total reporting period, but should plan their CPE so they're earning at least 20 hours each year.
WSCPA Mailing List Policy
The WSCPA does not sell member email or mailing addresses. Members may occasionally receive mail from third-party partners that offer products or services deemed to provide value to members. To be excluded from these mailings, update your Communication Preferences online by clicking the "Update Preferences" link in any WSCPA email, or send a request to unsubscribe from third-party mailings to webmaster@wscpa.org
Washington CPA Foundation: Exciting Changes on the Horizon
Monette Anderson, CAE
In August, the Washington CPA Foundation Trustees gathered for a productive strategic planning session, focusing on expanding our impact and continuing to support the future of the accounting profession. We're excited to share some significant updates to our scholarship and grant programs aimed at making a difference for students across Washington state.
Expanding Our Grant Program
We’re thrilled to announce that we’ve increased our grant budget by $20,000, bringing the total to $50,000. These grants will fund impactful projects that spread awareness of accounting opportunities and career pathways, particularly for underrepresented students. This initiative aligns with our goal of addressing the accounting pipeline by fostering greater inclusion and diversity within the profession.
New Scholarship Opportunities
As we enter our third year of offering Associate scholarships to first- and second-year accounting students, we are expanding our scholarship offerings in meaningful ways. This year, we are proud to introduce 10 additional $5,000 scholarships, with a focus on students with a 2.5 GPA or higher (previously 3.0), and those from underrepresented backgrounds, including financial need, ethnic diversity, veteran status, and first-generation college students. These scholarships reflect our commitment to supporting students who bring diverse experiences and perspectives to the field.
The Foundation is also excited to announce the Rich Jones International Support Scholarship. With a deep commitment to
students, Richard E. (Rich) Jones, CPA, former WSCPA President & CEO and Foundation contributor, has been a passionate advocate for supporting international students, particularly those facing unique obstacles related to their status, such as students from conflict-torn regions where returning to home is unsafe. This scholarship aims to provide additional resources to help students overcome the barriers threatening their ability to complete their education and earn CPA licensure. Through his work as a mentor, Rich has witnessed firsthand the challenges faced by our international student population, reinforcing the urgent need for continued support and assistance in their journeys.
We’re proud of these new initiatives and remain committed to supporting future CPAs and accounting professionals across the state. Stay tuned for more updates on how these changes will shape the future of accounting in Washington!
If you would like to support the Foundation, you can do so at wscpa.org/support
Monette Anderson, CAE, is Executive Director of the Washington CPA Foundation. You can contact Monette at manderson@wscpa.org.
photo: © iStock/Prostock-Studio
“Always walk through life as if you have something new to learn, and you will,” said Vernon Howard.
Growth Mindset & Your CPE Requirement: A Path to Development & Adaptability
Cultivating a growth mindset and diligently identifying opportunities for improvement and continuous learning contributes to our professional development and adaptability.
Sarah Funk, CPA, CGMA
When you think of learning something new, do our CPE requirements come to mind?
With my three-year CPA license renewal approaching at the end of this year, I have found the requirement to take a minimum of 20 CPE hours each year to be helpful in keeping me on track in obtaining hours. This also encourages me to explore new areas of interest. There’s always something new to learn!
Amid the ongoing disruption of technology and regulatory changes, the lifelong learning journey of being a Certified Public Accountant extends far beyond merely counting credits to meet compliance requirements. Whether you’re working to learn a little about something new or a lot in your field of expertise, harnessing a growth mindset is essential in our ever-changing world.
CPE enables us to focus not only on our areas of expertise but also on emerging areas, such as creating Artificial Intelligence (AI) literate workforces—accelerating and transforming the way many of us work. My organization is increasingly leveraging AI tools for process documentation and drafting meeting notes, shifting our efforts from tactical to strategic initiatives and fostering improved collaboration as we find new ways to work. We are gaining momentum in using data trend algorithms analysis to improve decision-making.
For me, learning often leads me to ask better questions and build sustainable processes and controls to ensure improved completeness and accuracy of financial reporting to appropriately mitigate, monitor and manage risk.
For example, with the evolution in System & Organization Controls (SOC) Reporting available, I find it’s useful to understand the differences between various SOC reports and report types to determine which report is most appropriate to meet my organization’s needs and compliance requirements.
With increased cybersecurity incidents, SOC reports provide credibility to both internal and external stakeholders, if you obtain the correct report.
Type 1 reports focus on the design of controls at a point in time, providing less comfort, while Type 2 reports assess the operational effectiveness over a period of time through testing of controls. User control considerations (UCCs) within SOC reports are also critical to understand as part of the vendor selection process to ensure your organization manages control gaps not covered by third-party organizations.
Though not part of my day-to-day work, staying up to date on SOC changes through CPE has been helpful in shaping the way my organization evaluates new vendors and gains insights into how to protect data and manage risks.
Leveraging vendors with the appropriate SOC reports also allowed us to scope and scale controls and processes for a Payment Card Industry Data Security Standard compliance (PCI DSS) audit.
The work that we as CPAs do is so varied and keeping up to date on new requirements and developments affecting our work is indeed a challenge. Fortunately, we can turn to the WSCPA for CPE to help us meet those challenges. From the Member Exclusive Webinar Series (lunch and learn programs) to FlexCasts to in-person and online conferences, all with a broad breath of topics and speakers, there are thousands of program options in the recently updated online CPE & Event Catalog (visit www.wscpa.org/cpe). If you need help finding a CPE program to meet your needs, reach out to the WSCPA team. They are ready to help you locate a course that is ideal for you.
Sarah Funk, CPA, CGMA, is Chair of the WSCPA Board of Directors. Contact Sarah at sarahfunkcpa@gmail.com.
graphics: © iStock/Judith Rowe, © iStock/Youngoldman
Expand Your Advisory Reach
"Through their strengths and personal engagement, managers influence 70% of the factors that determine team engagement."
Strengths-Driven Success: Why WSCPA is Investing in Gallup CliftonStrengths Training
Monette Anderson, CAE
In March, I boarded a plane to Chicago to embark on an exciting new journey. I was joining a diverse group of professionals for a one-week intensive training on Gallup CliftonStrengths. I wasn’t quite prepared for the sheer volume of materials I received—enough to make me wish I’d checked an extra bag for the trip home—but the experience was nothing short of amazing. Over the week, I engaged in deep conversations with 20 other professionals from vastly different backgrounds, all united by a common goal: harnessing the power of strengths.
In a room teeming with HR leaders, life coaches, and college career counselors. I stood out as the lone representative of a CPA membership association—a rare species, I suppose. It’s not every day you find yourself talking shop with someone who works in Vistage Executive Coaching or Bloomberg HR, but it was clear that strengths-based development had something valuable to offer each of us, no matter how different our day jobs might be. Investing in strengths is more than just a strategy—it’s a powerful way to unlock potential, no matter where you start.
The Data-Driven Decision Behind Our Investment
When you think of Gallup, you might initially think of research polling. However, it may surprise you to learn that 30% of Gallup’s total revenue comes from organizational psychology and employee engagement. Fortunately, if anyone has the data to support their approaches, it’s Gallup—and we, like you, our CPA members, value data-backed strategies. Here are a few compelling statistics that Gallup highlights for its CliftonStrengths model:
• Increased Employee Engagement: Gallup research shows that employees who use their strengths every day are six times more likely to be engaged in their jobs. Engagement is strongly linked to higher productivity, better customer service, and lower turnover.1
• Higher Productivity: Teams that focus on strengths daily experience a 12.5% increase in productivity.2 For small- to medium-sized businesses, this could mean an additional $62,500 to $250,000 in productivity gains.
• Lower Turnover: Gallup’s studies indicate that strengthsbased development can reduce employee turnover by as much as 72% in high-turnover organizations. The costs of replacing an employee can be around 1.5 to 2 times their annual salary.3
• Strengthened Leadership Impact: Through their strengths and personal engagement, managers influence 70% of the factors that determine team engagement. Leaders who prioritize strengths create more motivated, high-achieving teams.4
How We’re Implementing Strengths-Based Training
WSCPA is committed to equipping our members with the tools they need to thrive in today’s challenging environment. To that end, we’ve trained three members of our executive team in strengths-based training, so they can bring this powerful approach to your organizations and our broader community. This combination of leadership experience and a focus on strengths positions us to help your organization tackle key challenges, such as short staffing, high turnover, and a shrinking talent pipeline.
We are utilizing this training in a few key areas.
In-House
Strengths-Based Training:
Ready to bring strengths-based development directly to your leadership team or staff? Our executive leaders are here to help with tailored training that understands your business and goes beyond what other Strengths Coaches can offer.
We’re currently offering free leadership training to WSCPA Peak Firms (with the only out-of-pocket expense being the cost of the CliftonStrengths assessments, starting at just $10 per test). This package is valued at $2,000!
If your firm isn't a Peak Firm, we also offer competitive rates starting at $2,000, plus the cost of assessments.
What’s covered in a strengths training session?
• Building a Strengths-Based Culture: Practical ways to integrate strengths into daily operations and team culture.
• Strengths Development Plan: Personalized strategies to grow strengths and address blind spots.
• Strengths for Leadership: Empower employees and nurture leadership using strengths-based development.
• Team Strengths Map: Visual tools to identify team strengths, patterns, and gaps.
• Strengths & Blind Spots: Understand how strengths show up at work and the risks of overuse.
• Strengths-Based Communication: Improve communication by leveraging colleagues' strengths.
• Collaboration Techniques: Enhance teamwork and productivity by aligning strengths with tasks.
• Strengths & Role Alignment: Match responsibilities to strengths for better performance and satisfaction.
What Sets Us Apart?
With WSCPA facilitating your training, your team will not only gain valuable insights into their strengths but also have the added benefit of earning CPE credits—an offering not typically available with other Strengths Coaches. Our approach is tailored to fit the unique needs of your profession, providing strategies that directly address the challenges accounting professionals face.
The Benefits We’re Seeing
The feedback from our in-house training sessions has been overwhelmingly positive. In fact, 100% of respondents indicated they are very likely or somewhat likely to apply what they’ve learned in their day-to-day work. We’ve seen stronger team collaboration, more engaged leadership, and enhanced communication within firms who’ve embraced this approach. One such example comes from Baker Tilly-Seattle, where CliftonStrengths training has made a profound impact. Kelly Nelson, Managing Partner, shared, "I firmly believe it’s essential to identify each team member’s unique genius and natural strengths to enhance the efficiency of both strategy development
Organizations are failing to create workplaces of higher engagement and wellbeing.
13% Actively Disengaged
36% Engaged 51% Not Engaged
and execution. When we lead with strengths, we’re not simply assigning tasks—we are celebrating what makes each individual exceptional. This enables people to shine, ensuring that their talents are both recognized and nurtured."
By aligning strengths across teams, Baker Tilly-Seattle has been able to build collaborative teams that achieve extraordinary results. "Participating in a facilitated session with WSCPA gave us the opportunity to better understand our individual strengths and motivations while also helping us identify team members whose abilities complement our own," Nelson concluded.
Learn More
Monette Anderson, CAE and Gallup-Certified Strengths Coach, is the WSCPA Vice President of Membership & Education. You can contact Monette at manderson@wscpa.org.
• Bring in-house training on Gallup CliftonStrengths to your firm. Visit wscpa.org/training
• Attend the Emerging Leaders Workshop, Nov 20 in Bellevue. Registration includes CliftonStrengths for Leaders assessment/report and guidance on how to leverage your unique strengths. Register today at wscpa.org/ emerging-leaders
1. Gallup, Inc. (2020), CliftonStrengths Resource Guide for Managers, Gallup Press.
2. Gallup, Inc. (2020), CliftonStrengths Resource Guide for Managers.
3. Gallup, Inc. (2020), Strengths-Based Development: Leadership’s Role, Gallup Press. 4. Gallup, Inc. (2020), Strengths-Based Leadership, Gallup Press.
image: © iStock/wildpixel
Source: Gallup, Inc. (2020), Gallup Global Strengths Coach, Gallup.
*Gallup 2020 research- represents US workforce
Why More Employees Aren't the Answer: Focusing on Your Best Clients
Matthew F. Hersch, CFP®, CEPA
The shortage of available accountants can make expanding your team difficult and risky, leading to increased complexity and potential cultural issues. A more strategic approach involves segmenting your clients to focus on high-value relationships and reassessing your minimum fees to better balance supply and demand.
If you were able to transform your business in a way that would help you transform your life, what would that give you? More money, more time off, and less stress often make the shortlist. The pursuit of these goals is common, yet elusive for many business owners. The primary barrier? Time.
When we think of solutions, hiring more people frequently comes to mind. However, a shortage of qualified accountants makes this approach challenging. Even if you were to find someone, hiring often addresses the wrong problem—catering to clients who no longer align with your practice instead of adding value to your best clients. We often think about the salary when hiring, but there are other issues to contend with as well that shouldn't be overlooked: the hidden costs of hiring (bonuses, 401(k) match, health care benefits, workstations, etc.), the complexities of managing more employees, and the impact on your firm’s culture if a wrong hire is made.
Additionally, it is important to think about who you work with and how. This can be thought about from two different angles. First, identify the clients you are working with and how you are helping them. Second, who are you working with at your firm and how are they working to create a better client experience? To start, let's walk through a way to assess your client base to understand the various categories of clients and the potential opportunities with each.
Segmenting Your Client Base Differently
You’ve likely encountered the Boston Consulting Group Matrix1 (think of the Cash Cow) for client categorization. While useful, our experience led us to modify this matrix to better serve the needs of a professional services organization. On the x-axis is revenue (high on the right and low on the left). On the y-axis is complexity (high on the top and low on the bottom).
Quadrant 1: VIPs (High Revenue, High Complexity)
Not only do these clients generate high revenue, but they also have complex and evolving situations. There are numerous advanced planning opportunities with which to assist these clients and monitor over time. Addressing these needs requires both subject matter expertise and ongoing communication with the clients and their teams of professionals.
Who should work with this group? We see the firm's partners working best with these clients. Not only do the partners typically have the most experience, but they also have the closest relationships to these clients.
Quadrant 2: Wildcards (Low Revenue, High Complexity)
At first you may be scratching your head on this one. Wildcards may not yet generate high revenue but have the complexity and potential to become VIPs. These are clients who are on the verge of a change in their situation, which will require a more in-depth engagement with the firm over time.
Who should work with this group? We often see people on the track to becoming a partner working with this group of clients, as they too may be viewed as wildcards and can grow alongside the client and their situation.
Quadrant 3: Cash Cows (High Revenue, Low Complexity)
This is the only quadrant name retained from the original matrix. These clients meet a revenue threshold above your minimum fee, prefer working with a professional to going it alone, yet have straightforward situations, making them less likely to need advanced planning.
Who should work with this group? We feel that this quadrant can be overseen by a relationship manager that has the experience and people skills to manage a larger number of clients who simply need the job to be done and done right.
Modified from Boston Consulting Group Matrix (see footnote 1).
Quadrant 4: Mis-Fits (Low Revenue, Low Complexity)
Mis-Fits are clients who have become misaligned with the work your practice does and therefore are no longer the right fit as clients of your firm. People often discount the impact that this group has on the firm, but this group often collectively can require a disproportionate amount of the firm’s resources relative to the revenue they produce.
Who should work with this group? Ideally, someone that is outside of your firm. While there will always be people in this group that will remain in your practice, it is likely that there are also a number that can be transitioned to a new home outside of your firm.
Then What?
Once you’ve categorized your clients, the next steps are crucial for optimizing your practice.
Step 1: Assess Your Teams' Capabilities
Evaluate your team members, determining who has the skills to manage the relationships in the various categories. Keep in mind that the people overseeing each category may have different strengths. Only once you turn over the management of these relationships will you have the needed bandwidth to work more closely with your VIPs.
Step 2: Review Mis-Fits
Identify which Mis-Fits are in fact misaligned and no longer fit your practice. Once identified, develop a strategy to transition them to a new home that is better suited for their needs. For those that do remain, ensure the fee they are paying at a minimum covers the cost of having them as a client.
Step 3: Focus on VIPs
We have all heard of the 80/20 rule and it wouldn't surprise me if 80% of your revenue comes from the top 20% of your clients. Spend the majority of your time as a partner with these people, who are likely your VIPs. Seek out additional planning opportunities and work closely with them and their team of professionals to implement these strategies. Not only will this help you have a lasting impact on these clients’ lives, but it will likely lead to introductions to more people just like them.
Effectively segmenting your clients and focusing your time on those who provide the most value can be transformative to your business and the lives of your clients. While this transformation will likely have an impact on your professional life, it will also give you the personal benefits you seek—more money, more time off, and less stress. Embrace this strategy to achieve the balance you desire while making a true impact on the lives of your best clients.
image: © iStock/PeopleImages
Matthew Hersch is a Financial Advisor with the Global Wealth Management Division of Morgan Stanley in Seattle, Washington. The information contained in this article is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. The strategies and/or investments referenced may not be appropriate for all investors as the appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. Investing involves risks and there is always the potential of losing money when you invest. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC, Member SIPC, or its affiliates. Information contained herein has been obtained from sources considered to be reliable, but we do not guarantee their accuracy or completeness.
CRC 3822359 09/24
Learn More
Hear Matthew Hersch at the 2024 Pacific Tax Institute, October 29-30 at Meydenbauer Center in Bellevue/Webcast. Register now at wscpa.org/pacific24
1.
Matthew F. Hersch, CFP®, CEPA, is Executive Director and Financial Advisor of Pike Place Partners at Morgan Stanley. You can contact Matthew at matthew.f.hersch@ms.com.
Accounting Pipeline Crisis Presents Opportunity
CPA jobs offer variety from 9-to-5 employment to business ownership
Nick R. Fuller, CPA, CFP®
Elvis Presley is credited for once stating “I have no use for bodyguards, but I have very specific use for two highly trained certified public accountants.”
Today, CPAs enjoy a collective reputation as trustworthy and respected professionals, in part due to the number of regulatory agencies that oversee their work—Securities and Exchange Commission, IRS, National Association of State Boards of Accountancy, Public Company Accounting Oversight Board, and more. Continuing education also is required to maintain CPA licenses. CPAs possess technical knowledge relied upon by stakeholders throughout the business world.
The accounting profession is in the midst of a talent pipeline crisis, facing labor market challenges that are wide ranging and affect a broad spectrum of businesses, as well as some that are industry specific. Baby boomers are retiring, and firms are struggling to attract and retain millennial and Gen Z talent. College enrollment is down, and aspects of the accounting business model, such as the seasonality of revenue forcing long hours during the tax season, have led to a high level of employee burnout and a diminishing reputation among high school and college students.
Once predicted to be replaced by computers—as per a 2013 Oxford study on the future of employment—the reality is that despite significant impacts from technologies like AI and machine learning, the demand for CPAs is growing, not shrinking.
The Bureau of Labor Statistics estimates the need for accountants and auditors will grow at a rate of 4% per year between 2022 and 2032. Meanwhile, the American Institute for CPAs reported in its 2023 Trends Report that accounting bachelor’s degree completions have decreased each year from the 2016 academic year through 2022, with roughly 17% fewer accounting students graduating in 2022 than in 2016. The trends are more glaring for new candidates sitting for the CPA exam each year, which decreased roughly 37%—almost 18,000 prospective CPAs—in the same period.
This talent squeeze is being felt on a national level, as the National Pipeline Advisory Group (NPAG), recently released a draft report outlining root causes of the shortage and proposing preliminary strategies to address the issue.
Recommendations from NPAG are wide-ranging and include reducing the financial barriers to CPA licensure, increasing starting salaries, casting a wider net by attracting nontraditional students, and enhancing the employment experience, which calls for adapting to a workforce that prioritizes flexibility and values alignment more than previous generations.
The effects of the shortage are also being felt locally. In my role with the Spokane chapter of the Washington Society of CPAs, I have had countless conversations with local and regional firm owners eager to hire both experienced and prospective CPAs. A quick online search produces dozens of Spokane job postings ranging from large, national firms like BDO, CLA, and Moss Adams to small, local practices with 10 or less employees, as well as finance and accounting roles at highly regarded Spokane-area corporations Avista and Itron. Local tax firms are hitting capacity limits and selling or simply letting go of clients they can’t serve appropriately.
Plainly put, there’s an imbalance of supply and demand. Simple economics points to an attractive opportunity for accounting professionals and students considering the CPA career path.
Job security and stability for CPAs in the current environment is unrivaled, but the benefits of a career as a CPA go beyond steady employability.
The CPA credential commands a level of respect few others are afforded early in their careers, as first and second-year staff at public firms are often granted a seat at the table with decision makers and business owners, which leads to incredible opportunities for on-the-job learning and expedited career advancement.
Career flexibility is another benefit afforded to students who choose accounting. Often referred to as the language of business, a comprehensive understanding of accounting can be utilized in many fields, offering CPAs comfort should they realize their first job out of college isn't their dream role. Financial planning, private equity, and banking are all industries a CPA can transition smoothly into. Even the FBI regularly hires special agents with an accounting background.
The choices don’t stop there, as the risk averse professionals can pursue a predictable 9-to-5 job with a stable salary and great benefits, while those with an entrepreneurial spirit can pave a path to business ownership.
Anecdotal evidence suggests that the average time to partner is around 15 years, but that varies widely. For those who transition out of public accounting, there are opportunities for a corner office in other sectors, for example, chief financial officer, where compensation ranges but remains competitive.
As menial tasks that accountants previously performed continue to be automated at an exponential rate, CPAs sit on the front lines of innovation and continue to resist obsolescence. Public accounting firms historically have focused on audit and tax services, but the field has been transformed by technology, and CPAs are relied upon to consult in a variety of areas, including information technology and data security, cloud computing, data analysis, blockchain technology, corporate ESG initiatives, financial planning, and artificial intelligence. In essence, if a technology or topic is making waves in the business world, it’s safe to assume there's a team of CPAs involved with it in some capacity.
With four area universities that offer bachelor’s degrees with an accounting focus and a strong community college system, Spokane can help ease this pipeline crisis.
Spokane’s Andrew Brajcich is the Jud Regis Endowed Chair of Accounting at Gonzaga University and the immediate past chair of the WSCPA. A thought leader on accounting and taxation, Brajcich is among those who spearheaded an effort to make CPA licensure more attainable by lengthening the window Washington applicants have to pass all four required exam sections from
18 months to 36 months, the longest in the country. He is also a leader of conversations on a national level that bring into question the traditional 150 credit hour requirement prospective CPAs need to sit for the exams, which often requires students to attend and pay for a costly fifth year of college.
Kimberly Scott, President and CEO of the WSCPA, is working alongside Brajcich in these efforts and sits on the National Pipeline Advisory Group with industry leaders from across the country. In a July visit to Spokane, Scott emphasized the need for the industry to tell a better story to prospective accountants and to adapt an outdated business model to improve the employee experience. Specifically, Scott pointed to a middlemanagement problem where employees are promoted based on their work product but not properly equipped to manage people. A passionate advocate for the profession, Scott works directly with firms to help them align employee roles and workflows with their natural strengths.
Ultimately, the accounting pipeline problem is glaring, which is forcing employers to adapt in order to attract and retain talent. Salaries are rising and work-life balance is in the spotlight. Students planning for their future would be smart to consider careers in accounting as they stand to benefit from the supplydemand disparity.
Nick R. Fuller is a CPA and financial planner at Spokane-based Quantum Financial Planning and a member of the board of the Spokane chapter of the WSCPA.
Which Path Forward?
Mike Nelson
How many hours of education should CPA candidates complete? For the last few years, there has been a fierce debate about whether 150 hours or 120 hours of education should be required for licensure. After a year of much debate and many changes, several options are emerging to change licensing laws across the states.
During the May 2023 AICPA Council meeting, the National Pipeline Advisory Group (NPAG) was formed, with representatives from the AICPA, the National Association of State Boards of Accountancy (NASBA), state societies, firms, industry, and academia serving on the group. The group met throughout 2023 and 2024 to produce a report on a multi-faceted approach to addressing the overall pipeline. As part of that report for licensure, NPAG has recommended moving away from a set number of hours and toward an end goal of having competencies embedded in the process. This would allow any candidate, regardless of their educational background, to have the opportunity to pass the exam and demonstrate the various competencies needed to be a CPA.
In October 2023, NASBA, at the direction of their chair, formed their own group to look at licensure and mobility issues. As a result of the efforts of the NASBA group and NPAG, work is now
underway to update the Uniform Accountancy Act (UAA) with new language around mobility and licensure. The UAA serves as the model language that states individually adopt into state laws and regulations. By updating the UAA, the hope is that states move together in a general direction of implementing new requirements that preserve mobility and licensure as much as possible in the coming years as new pathways are adopted in various states.
Licensing Pathways
Minnesota in many ways started the discussion around adding additional licensing pathways when they introduced legislation in 2023 which would have allowed candidates a pathway to licensure if they had earned 120 hours and completed two years of experience or 150 hours and one year of experience. While their legislation has not passed yet, several other states and state boards of accountancies had expressed an interest in changing licensing laws following this proposal.
So far this year, one of the largest changes has come out of the California Board of Accountancy. Like other states, California has been watching the conversation around licensure pathways and has put together their own set of proposals. The general framework that they are looking to implement for licensure is completion of a baccalaureate degree in accounting or related field and two years of experience or completion of a master’s degree in a relevant field and one year of experience. California is awaiting final approval to introduce legislation and begin rulemaking.
The AICPA and NASBA groups are suggesting a slightly different model. Their general proposal for a near term change to licensing is a baccalaureate degree with one year of “enhanced” experience and one year of general experience or a master’s degree and one year of general experience. The enhanced experience, as they have conceptualized it, would be designed to validate a candidate’s competencies in various areas needed to become a CPA. There has been some pushback on how the enhanced experience would work and that is still being refined through a public comment period and additional meetings into December. During a NASBA conference call in August, it was noted that states like Washington, Oregon, Nevada, and others who already have the verification of competencies required within experience, would already qualify as the enhanced experience and not need to adopt a completely new “enhanced” proposal as part of an update to experience. This is important because, while California is expected to move forward with their plans in the coming year, Oregon is also planning to run legislation that would closely mirror the outline California has so far proposed.
Substantial Equivalency vs Automatic Mobility
While the various licensing pathways play out in the coming year, an equally important change being developed is related to mobility. Mobility is important to many CPAs and CPA firms as it allows them to work across state lines. Under the current
language in most states, mobility will be lost if a state adopts an alternative pathway to licensure as described above. As a result, two new forms of mobility are being widely discussed.
NASBA and the AICPA have been working on updating the existing language of mobility to allow any state that meets the minimum standards for licensure, and particularly the enhanced experience, would remain substantially equivalent to other states and maintain mobility.
The other option, which is a part of California’s proposal and is being discussed in many other states, is automatic mobility. This language already exists in North Carolina, Nebraska, Alabama, and Nevada statutes. It says that any CPA who has passed the CPA exam and been licensed in a state also is eligible to practice in those states. This would allow the most stability for those CPAs and firms that use mobility as it removes specific requirements around education or experience and instead relies on state boards of accountancy to work together and trust each other to have oversight of licensees in their states.
In the next year or two most states will adopt changes to their licensure and mobility laws. What the final laws will look like remains to be seen but the movement to change away from the current 150-hour education requirement and toward pathways for baccalaureate graduates and competency-verified experience is certain.
Stay up to date on the latest changes by reading the Present Value newsletter and when public comments are open, let national or state leaders know what direction you would like to see.
Mike Nelson is WSCPA Manager of Government Affairs. Contact Mike at mnelson@wscpa.org.
From Passion to Purpose: How CPAs Can Make a Difference through Volunteerism
Have you wondered how to find a cause you are passionate about and how you can leverage your skills to make a difference?
During a WSCPA Member Exclusive webinar held earlier this year, Daniel Nguyen-Fleming, WSCPA Director of Membership, talked with several CPAs who are committed to making a difference through volunteerism and giving back to the profession.
MEET THE MEMBERS
Martha Ramirez is a tax operations manager at Clark Nuber and a CPA with five years of experience specializing in nonprofit tax returns. She is a current trustee of the Washington CPA Foundation.
Can you share your journey into nonprofit work, either professionally or personally, and how your role as a CPA has influenced that path?
Michaela: I started working with nonprofits professionally and doing audits for them early in my career. I quickly found that working with the nonprofit organizations that we serve was just more rewarding. As a manager, I had an opportunity to get unofficial board experience by serving on Wellspring Family Services’ associate board. I served for several years and then about five years ago, I began serving on the Board of Directors and now am the Chair of the Wellspring Board. I get a lot of personal fulfillment from my time spent in the not-for-profit world, whether it's auditing nonprofits or volunteering with them.
Michaela Kay is the practice leader for the BDO Seattle office’s government and nonprofit practices and previously worked for World Vision as a lead senior accountant for two years. She currently serves on the WSCPA Board.
Richard Burger-Mackey is an investigator working in the tech industry with 20 years of experience in controllership, compliance and assurance. He is an active volunteer with the WSCPA and his local community, serving on the WSCPA Board and as a previous trustee of the Washington CPA Foundation.
Martha: My desire to be involved in the community has been a part of me since childhood. My family and I were often on the receiving end of community kindness while I was growing up, and it instilled a desire within me to give back. As a teen, I ran toy drives or volunteered at soup kitchens. Now in a professional setting, I'm excited to be able to give back in other ways, too. As a CPA, I worked in nonprofit tax for about five years and helped clients navigate complex tax law and prepared returns that allowed them to tell their stories. It was rewarding to be working with nonprofits in that way.
Richard: I've always had community-focused role models. My values were instilled when my father served in the armed forces and then later transitioned to government work and my mother, who was raising the kids, still found time to volunteer at community events and parent-teacher associations. Early in my career, I was surrounded by mentors who were volunteering and serving on boards. They encouraged me to find a way to contribute that was meaningful, no matter how big or how small. I found it was easy to build on those low commitment volunteer experiences and naturally grew into positions with
more responsibility. As a professional accountant, one of my first opportunities was serving on the finance committee for the board of a nonprofit community theater. They needed financially-literate volunteers to help serve on their committees. One of my first responsibilities was performing audits of their internal controls, because they needed that specialized skillset that we bring as accountants and CPAs.
How has your experience serving on WSCPA committees and boards shaped your perspective on volunteering and giving back?
Martha: As a student, I received a scholarship from the Washington CPA Foundation and today, I sit on the very same board. It is rewarding to be an active part of the board that gives students the same opportunities that I was given years ago. When I received my scholarship from the Washington CPA Foundation, it opened many doors for me, and not just through financial support. I was welcomed into a network of professionals, who were more than willing to share their experiences, their resources, and in some cases, their friendship. I learned so much by receiving the WSCPA Foundation scholarship and I am motivated to cultivate those opportunities for others—for future CPAs and students who are trying to navigate what realistically can be a complex path to follow. I'm excited to continue that mission as part of the Foundation board.
Michaela: I got involved with the WSCPA many years ago through the Not-for-Profit Resource Group. They held monthly meetings on interesting topics where I could go and learn, and over time I was able to build relationships and friendships with other CPAs that are part of the WSCPA and part of that group. I got involved in planning the Not-For-Profit Conference that happens in the fall, and the more I got involved, the more I got out of it. We get back a lot from what we put in, effort wise. Saying “I want to learn about these topics” grew into so much more than that just by showing up and raising my hand and saying, “I can help with that.”
What motivates you to remain actively involved in the community, service and nonprofit organizations?
Richard: I’m motivated by opportunities to meet individuals and hear their stories. It's the opportunities to make a real difference in the lives of stakeholders, customers, community members. I know people whose lives were shaped because I was volunteering on income tax assistance or WSCPA's Washington CPA Foundation awarding scholarships and giving college and university opportunities to folks who could never have dreamed of that pathway. When you get to meet these folks and catch up with them yearly and see how they're progressing toward their goals and their dreams, and when they finish school and they're out in the working world and they become your colleagues, it's just an amazing sense of satisfaction that you had a real tangible impact on the lives of a real person. It's not just a statistic of
millions of people helped. It's these real personal stories with faces and names, real community members. It just lives in my heart and motivates me to keep going.
Martha: What makes it so easy to stay motivated is how easy it is to get involved. You don't have to know anybody to get started. If you're passionate about supporting pets, call up your local humane society and ask them for volunteer opportunities. You don’t need to be part of a board, but you can if you’d like to be. Boards are always looking for members who have financial literacy, but as you build your network of connections, those opportunities are going to come up organically to the point where eventually you'll have to say no and push them off. If I am feeling completely overwhelmed at work and I really need to do something outside of my house, it's easy to find an opportunity to volunteer. And it’s very rewarding at the end of the day!
What would you recommend for those who want to volunteer but don't necessarily want to volunteer in a financial capacity?
Michaela: If somebody knows you're a CPA, you will likely be asked to join the finance committee. Be prepared to say no a lot, but you can set boundaries and offer to do other things.
Martha: I think that if you want to do something for fun, find out or determine what is that “fun” for you. What does that look like? Is it hands-on building houses? Is it planning networking events? Is it teaching? Find something that you're passionate about and you’ll find that those opportunities are plentiful, beyond serving on the finance committee of a nonprofit board.
Richard: I wouldn't discount the value of financial literacy activities, even if you don't want to volunteer in a finance role. The financial literacy that you have, the acumen, the ability to translate that with management and operational objectives, being able to advise on that, or the ability to advocate for members of your community who aren't able to speak as fluently. I think there are still a lot of opportunities, even if you don't want to be volunteering in an accounting role or doing more journal entries.
What strategies do you use to help balance that professional responsibility piece with the passion for community service? In addition to being prepared to say “no, thank you.”
Michaela: I view my ongoing volunteer commitments just as important as my paid work. I don't really prioritize one in front of the other. Calendar management is key to making all those puzzle pieces fit together. It probably also helps with my firm being really supportive of it. We have a time code to “charge” our volunteer hours to.
Martha: Join a firm with a similar passion or a company with a similar passion for volunteerism. Firms that are committed to making an impact in their communities will sponsor volunteer events. They encourage and support external community
involvement. They'll be flexible with your schedule. It makes it easier to get involved if your co-workers are also a part of it! As far as being prepared to say no, I would recommend defining exactly how you want to be involved and what causes are important to you. Once you define what you want out of it, you will be able to say yes to those volunteer opportunities that are in alignment with your passion, and it’ll be easier to pass on opportunities that will not be as fulfilling.
What advice would you like to give your fellow CPAs looking to get involved in nonprofit or community work?
Richard: Do it. Get involved. Even if you don’t know from the outset what the perfect volunteer experience is going to look like, the best way to start is to lend a hand and start making an effort.
Michaela: If you haven't done any volunteer work lately, but you want to get involved, sign up for something. Just raise your hand. There's so much need out there that somebody will take you up on the offer.
Martha: The best advice I could give is to just go and get started. There is a lot of need in our communities and it's not hard to start doing something. You don't have to start as president of the board, a trustee or even a treasurer. You could just sign up to walk dogs with your humane society, serve in food kitchens, volunteer your time to sort through donations, build a playground, etc. Call up a nonprofit you’re passionate about and ask them how you can volunteer. Nonprofit organizations would be happy to get a call from you.
Looking for volunteer opportunities?
Visit the Volunteer Opportunities page on the WSCPA website at wscpa.org/giving
Watch the full Member
Exclusive interview:
Follow the QR code or visit wscpa.org/volunteer24
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From Deal to Ledger: Essential Considerations for the Financial Reporting of Income Taxes in M&A Transactions
Michael Noreman, CPA, MST, MAcc, and Nick Stufano, CPA
With merger and acquisition (M&A) activity on the rise in 2024, a trend that practitioners are encountering is the preparation or audit of the associated purchase accounting, which is required under Accounting Standards Codification (ASC) 805, Business Combinations. Many professionals who deal with ASC 805 are well versed in the non-tax aspects, but when tax comes into the picture, many can be outside their comfort zone. The following framework can help ensure that the appropriate considerations are made.
Determine the Tax Structure of the Transaction
The initial consideration that should be made is to understand the tax structure of the acquirer and the acquiree as well as the method being undertaken to effectuate the transaction. This can be done through a careful review of company organizational charts as well as the purchase agreement.
Transactions are effectuated in one of two ways: through a taxable transaction or through a non-taxable transaction.
A taxable transaction leads to a “step-up” in the target’s tax basis of assets acquired and liabilities assumed to fair market value. This type of treatment is typically seen in acquisitions of assets and stock acquisitions that are treated as asset acquisitions for tax purposes by election (e.g., §338 elections for qualified stock purchases).
Conversely, a nontaxable transaction results in a “carryover” of the historical tax basis in the assets acquired and liabilities assumed. Assuming a premium is paid, this will typically result in a lower tax basis than the fair market value utilized for financial statement purposes under ASC 805. This type of transaction generally occurs in an acquisition of the acquired entity’s stock (unless a §338 election is made).
Determine the Financial Statement and Tax Bases
Under ASC 805-20-30-1, the acquirer measures the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquiree at their acquisition-date fair values. A valuation specialist is typically engaged to assist with the identification and measurement of such fair values. This will typically result in a step-up for financial reporting purposes to the acquired assets and liabilities of the target. The deferred tax consequences of such a step-up will depend on how the transaction is being accounted for from a tax perspective.
Taxable Transactions
In a taxable transaction, the acquirer will receive stepped-up basis in acquired assets and liabilities for both financial reporting and tax purposes. In many cases, the basis in each class of assets will be equal for both financial reporting and tax purposes. Accordingly, no deferred taxes are recorded as part of purchase accounting in these instances. However, in some cases, there can still be a difference between the financial reporting fair value and the tax allocation of acquired assets and liabilities under IRC §1060. When this occurs, deferred taxes are recorded in purchase accounting to reflect the differences between financial reporting and tax bases. It is important to review the purchase agreement in detail as it may outline how the parties will allocate the fair value for tax purposes and can save considerable time during the financial statement preparation and audit.
Non-Taxable Transactions
In a non-taxable transaction, the financial reporting basis of assets and liabilities both receive a step up to fair market value; however, the tax basis in assets and liabilities maintain carryover basis. This will lead to basis differences between book and tax that will require the establishment of deferred tax assets (DTAs) and deferred tax liabilities (DTLs). The most common and significant difference relates to the step-up in non-goodwill intangibles, resulting in a DTL.
A complexity that is commonly faced is accounting for goodwill. In cases where goodwill established for financial reporting purposes exceeds tax-deductible goodwill, no DTL should be established. However, a DTA is established when tax goodwill basis is greater.
Analyze Acquired Tax Attributes
In a non-taxable transaction, tax attributes such as net operating losses, tax credit and disallowed interest expense carry forward to the acquirer. These future tax benefits will be reflected as acquired DTAs which may be significant. However, it is crucial to understand any potential limitations in the future utilization of these acquired tax attributes (e.g., IRC §382 on net operating losses). If an attribute will necessarily expire unutilized due to these limitations, then it is not appropriate to record a DTA as of the date of acquisition.
Perform Realization Assessment for Deferred Tax Assets
Acquirers should assess the need for a valuation allowance against acquired DTAs as part of business combination accounting. An analysis of whether reversing taxable temporary differences (such as DTLs) are sufficient to utilize existing DTAs is an objective way to determine if a valuation allowance is needed, although there are other sources of evidence allowable to be used under the accounting standards (e.g., historical and projected profitability from operations). Also, acquirers should consider if the business combination warrants a change in the valuation allowance assertion for its own DTAs based on the combined entity’s tax position.
Consider Treatment of Tax Uncertainties and Indemnifications
Additional historical tax exposures may be uncovered during the due diligence process. It is imperative that if there are findings on historical positions that the risk be assessed and, if appropriate, recorded as a liability as part of purchase accounting. The recognition and measurement criteria for these findings can vary depending on if the liability falls within ASC 740, Income Taxes, or ASC 450, Contingencies.
Although accounting for the income tax in a business combination is complex, the above framework can be a great starting point to navigate the reporting nuances and considerations.
Learn More:
Engage with CPAs who share your interests by participating in one of the many resource groups and committees, which are open to WSCPA members. These groups provide a space for you to share your insights and stay aware of developments affecting your specific practice area, such as taxation, non-profit, or A&A. Visit wscpa.org/groups24
Michael Noreman, CPA, MST, MAcc, is a senior director at Alvarez & Marsal Tax, LLC. He can be reached at noreman@alvarezandmarsal.com.
Nick Stufano, CPA, is a manager at Alvarez & Marsal Tax, LLC. He can be reached at nstufano@alvarezandmarsal.com.
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Upcoming CPE
A selection of WSCPA CPE events scheduled November-January are listed.
To view the thousands of courses and complete details, please visit the CPE & Event Catalog at wscpa.org/cpe.
Pacific Tax Institute
October 29-30 | Bellevue & Webcast | 16 Credits
Prepare to advise your clients through the next round of tax returns! The Pacific Tax Institute, a conference designed for experienced tax professionals, will provide you with comprehensive updates of the most recent federal tax developments. Maximize your ability to reduce your clients' liabilities with the many strategies you will learn at this in-depth conference.
Emerging Leaders Workshop
November 20 | Bellevue | 8 Credits
Emerging leaders, take the lead in your leadership journey. This event will help you develop new skills, see the big picture, and connect with other emerging leaders. You'll gain valuable knowledge, strategies, and tools from insightful sessions and expert speakers. By the end of the event, you'll be ready to lead effectively in your organization and beyond.
Not-For-Profit Conference
November 20-21 | Bellevue & Webcast | 17 Credits
Not-for-profit professionals are masters of doing the most with limited resources. Get guidance on best practices from professionals in your industry. Plus, catch up on new and current regulations and connect with colleagues at this must-attend event!
Fraud Conference
December 5 | Bellevue & Webcast | 8 Credits
Even the most vigilant CPAs can be susceptible to fraud. Bad actors are constantly finding new ways to defraud your clients or organization. Come learn how to stop fraud in its tracks. Hear real life case studies and get the facts needed to recognize and prevent fraudulent activity. Whether you work in public accounting, industry or government, you will gain an understanding of how recent fraud cases unfolded and were discovered.
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
Oct 29 2024
Jan 22
Oct 24 Boos & Brews Trivia Night | Spokane
Oct 25 Coffee, Convos & Companies | Virtual
Oct 29 Pacific Tax Institute Reception | Bellevue
Nov 20 Not-For-Profit Networking Reception | Bellevue
Dec 5 Student Networking Event (Fraud Conference) | Bellevue
WSCPA PEAK FIRMS
CURRENT PEAK FIRMS
NEW PEAK FIRM
ACCOUNTING
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
Exclusive Benefits Include:
• Membership Dues Stay With Your Firm – Traditionally, WSCPA memberships remain with an individual, even if they leave your firm. When a member leaves a Peak Firm, we’ll honor your previous investment by providing FREE membership for the remainder of the membership year to your new hire.
• Easy Billing – Don’t get lost in paperwork—we’ll provide you with a single membership renewal invoice for all your employees.
• FREE In-House Training - Get 2.5 hours of personalized in-house training (valued up to $2,000), customized to meet the specific needs of your organization.
• FREE WSCPA Room Rental – One room per year, up to $1,200 value, subject to availability.
• FREE Job Listings – Up to two free listings on the WSCPA Job Board per year, additional listings at discounted member rate. Up to $200 value.
• FREE Passport Corporate Cards – All staff, members, and support staff/nonmembers; up to 30% of paid membership.
• Recognition – Your firm will be listed as a Peak Firm on the WSCPA website and social media, as well as in our quarterly magazine, The Washington CPA
• Receive a Peak Firm Logo – Display on your website to recruit staff and clients.
All benefits are for the membership year, June 1 - May 31.
Affinity Group CPAs & Consultants
Alegria & Company PS
Baker Tilly LLC
Brantley Janson Yost & Ellison
Clark & Associates CPA PS
Cook CPAs and Consultants, PLLC
Cordell Neher & Company PLLC
Dwyer Pemberton & Coulson PC
Eide Bailly LLP
Falco Sult & Co
FBCPA Group PS Inc
Finney Neill & Co PS
Greenwood Ohlund PS
Hauser Jones & Sas
Hellam Varon & Co Inc PS
Hunt Jackson PLLC
Hutchinson & Walter PLLC
Jacobson Jarvis & Co PLLC
James Russell PLLC
Johnson & Shute PS
Johnson Stone & Pagano PS
King & Oliason PLLC
Kovarik & Kim PLLC
Larson Gross PLLC
Lodder CPA PLLC
Martin Bircher Thompson PC
McDevitt & Duffy CPAs
Moss Adams LLP
Nicholas Knapton PS
Norris Lutkewitte PLLC
Northwest CPA Group PLLC
Opsahl Dawson PS
Rekdal Hopkins Howard PS
Ryan Jorgenson & Limoli PS
Shannon & Associates LLP
Smith & DeKay PS
Starr & Leaf CPA Group PLLC
StraderHallett PS
Sweeney Conrad PS
The Doty Group PS
The Myers Associates PC
Vine Dahlen PLLC
Werner O'Meara & Co PLLC
Willet Zevenbergen & Bennett LLP
Your Financial Solutions LLC
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VOLUNTEER OPPORTUNITIES VOLUNTEER OPPORTUNITIES
Interested in using your CPA skills to make an impact in your local community? WSCPA has a list of volunteer opportunities for you to check out!
• Equal Origins – new
• Pierce County Community Development Corporation - new
• Eastside Audubon
• Pushing Boundaries
Find or submit an opportunity at: wscpa.org/volunteer-opportunities
Check out this free benefit for WSCPA members!
Verifyle and the WSCPA have partnered to offer all members access to Verifyle Pro™️, Verifyle’s premium, ultra-secure online file sharing and messaging service (a $108 value) at no cost to WSCPA members
Sign up at verifyle.com/wscpa using the email on your WSCPA member account.
WSCPA Passport Card
Learn more at: wscpa.org/job-board
STATEMENT OF OWNERSHIP, MANAGEMENT, AND CIRCULATION (REQUIRED BY 39 U.S.C. 3685)
Your WSCPA membership includes this free benefit (a $150 value). Access 3,000+ discounts online and in your neighborhood. Great for dining, travel and shopping. Find your next adventure at wscpa.org/passport
1. Publication Title: The Washington CPA 2. Publication No.: 0000-9754 3. Filing Date: 27 September 2024. 4. Issue Frequency: Quarterly 5. No. of Issues Published Annually: 4 6. Annual Subscription Price: $12 7. Complete Mailing Address of Known Office of Publication: 170 120th Avenue NE Ste 101 Bldg E, Bellevue, Washington 98005-3051 Contact Person: Jeanette Kebede, Telephone: 425.586.1120 8. Complete Mailing Address of Headquarters or General Business Office of Publisher: Same as #7 9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor: Publisher: Washington Society of Certified Public Accountants, Editor: Jeanette Kebede, Managing Editor: n/a, Washington Society of Certified Public Accountants, 170 120th Avenue NE Ste 101 Bldg E, Bellevue, Washington 98005-3051. Owner: Washington Society of Certified Public Accountants, 170 120th Avenue NE Ste 101 Bldg E, Bellevue, Washington 98005-3051 11. Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages, or Other Securities: None 12. Tax Status Has Not Changed During Preceding 12 Months 13. Publication Name: The Washington CPA 14. Issue Date for Circulation Data Below: 08/02/2024 15. Extent and Nature of Circulation (Avg. No. Copies Each Issue During Preceding 12 Months, Actual No. Copies of Single Issue Published Nearest to Filing Date). a. Total No. Copies (Net press run): 5,937, 5,550. b. Paid Circulation (By Mail and Outside the Mail): (1) Mailed Outside-County Paid Subscriptions Stated on PS Form 3541: 3,224, 3,023. (2) Mailed In-County Subscriptions Stated on PS Form 3541: 2,549, 2,393. (3) Paid Distribution Outside the Mail Including Sales through Dealers and Carriers, Street Vendors, Counter Sales, and Other Paid Distribution Outside USPS: 0, 0. (4) Paid Distribution by Other Classes of Mail Through the USPS (e.g., First-Class Mail®): 0, 0. c. Total Paid Distribution [Sum of 15b (1), (2), (3) and (4)]: 5,773, 5,416. d. Free or Nominal Rate Distribution (By Mail and Outside the Mail): (1) Free or Nominal Rate Outside-County Copies included on PS Form 3541: 34, 37. (2) Free or Nominal Rate In-County Copies included on PS Form 3541: 0, 0. (3) Free or Nominal Rate Copies Mailed at Other Classes Mailed Through the USPS: 23, 26. (4) Free or Nominal Rate Distribution Outside the Mail: 0, 0. e. Total Free or Nominal Rate Distribution (Sum of 15c and 15e): 57, 63. f. Total Distribution (Sum of 15c and e): 5,830, 5,479. g. Copies not Distributed: 107, 71. h. Total (Sum of 15f and g): 5,937, 5,550. i. Percent Paid: 99.02%, 98.85%. 16. Electronic Copy Circulation n/a 17. Publication of Statement of Ownership If the publication is a general publication, publication of this statement is required. Will be printed in the 10/21/2024 issue of this publication. 18. Signature and Title of Editor, Publisher, Business Manager, or Owner: Jeanette Kebede, Editor, Date 09/27/2024
Mergers & Sales
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 4,300 completed transactions. Please contact us if we can be of assistance at 425.454.3052, 509.907.9406, or www.ibainc.com.
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Have a client / owner ready to explore the business sale process? We help owners confidentially explore the sale process. Transaction expertise, market knowledge, and results. 100% performance-based feesowners pay only at closing. Business owners are experts on their business. We are experts on the process of selling a business. Call 206.703.3555 for a confidential, no commitment consultation. Check out resources and learn more at wabusinessbrokers.com. Put our experts to work for you!
Are you looking to downsize your practice?
Public accounting firm in the Seattle area is seeking to acquire clients with complex tax preparation needs from a local firm that uses CCH Axcess Tax or ProSystem fx. We’re seeking corporate, fiduciary, partnership, and individual tax services clients. Individuals with complicated income streams from businesses, investments, rentals, trusts, and those with multi-state filing requirements are generally a good fit for our services. If you are looking to rightsize your practice, please contact us at 425.746.3232 or info@starrleaf.com.
Thriving King County Tax & Accounting Practice (WA 1236): Established in 2013, this successful practice has provided a wide range of tax and accounting services to both business and individual clients. At this time, there are 926 total clients. The Practice’s service by revenue breakdown is 81% tax and 19% accounting. In 2023, the Practice had over $2 Million in revenue and over $575k in EBITDA. The Practice’s success can largely be attributed to its established name and loyal clients who have grown to trust the services it provides. The practice currently employs ten (10) individuals, including the owner, who is willing to provide transition assistance and help with goodwill transfer, business development, and other “mentoring” functions for an agreed-upon period of time. To take advantage of this exciting business opportunity, call us at 253.509.9224 or email info@privatepracticetransitions.com, with "1236 Thriving King County Tax & Accounting Practice" in the subject line.
Highly Profitable Marion County Tax and Accounting Firm (OR 1208): For over 68+ years, this Marion County tax and accounting practice has provided its services to countless clients within the community and surrounding areas. The Practice offers a wide range of services such as Tax Preparation & Consulting, Financial Statements, Payroll, and Bookkeeping. The Practice’s success can largely be attributed to its established name and loyal clients who have grown to trust the services it provides. In 2023, the Practice had impressive gross revenues of over $1.8M. The Practice has thirteen (13) loyal staff members including the Owner, who is willing to assist with the transition to new ownership for a short period of time to maximize the transfer of goodwill and client retention. To learn more about this exciting business opportunity, call us at 253.509.9224 or, send an email to info@privatepracticetransitions. com, with "1208 Highly Profitable Marion County Tax and Accounting Firm" in the subject line.
Highly Profitable PNW Tax & Accounting Practice (1238). This successful Practice has provided tax preparation and consulting services to countless clients. As of June 2024, the Practice has approximately 1,161 active clients. The Practice’s service by revenue breakdown is 100% tax and tax consulting. In 2023, the Practice brought in gross receipts of just under $1.5 million, with the trailing twelve month (TTM) gross receipts over $1.67 million. Additionally, the Practice is highly profitable with a 41.7% EBITDA to Sales over the last twelve months. The Practice owes much of its success to its well-known reputation and dedicated clients who trust its reliable services. The Practice currently employs seven (7) individuals, including the owner, who is willing to provide transition assistance and help with goodwill transfer, business development, and other “mentoring” functions for an agreed-upon period of time. To take advantage of this exciting business opportunity, call us at 253.509.9224 or email info@privatepracticetransitions.com.
Successful Thurston County Tax & Accounting Firm (1232). Established in 1982, this successful Practice has provided a wide range of tax and accounting services to both business and individual clients. Currently, there are 1,111 total active clients. The Practice’s service by revenue breakdown is 26.2% Client Accounting Services (CAS), 33.1% Tax Preparation and Planning and 40.7% Special Projects. Over the past three (3) years, the Practice has averaged gross revenue of approximately $2,360,422 (2021-2023). In 2023, the Practice reached an impressive $3,029,988 in gross receipts, marking an outstanding 33.5% year-over-year increase! The Practice’s success can largely be attributed to its established name and loyal clients who have grown to trust the services it provides. The Practice currently employs fifteen (15) individuals, including the owners, who are willing to provide transition assistance and help with goodwill transfer, business development, and other “mentoring” functions for an agreed-upon period of time. To take advantage of this exciting business opportunity, call us at 253.509.9224 or email info@privatepracticetransitions.com, with “1232 Successful Thurston County Tax & Accounting Firm” in the subject line.
