THE
WASHINGTON CPA
Volume 67, Number 3
WINTER 2024
Advocating for the CPA Profession in Washington Oh BOI: The Corporate Transparency Act and CPA Firms Top Regulatory Issues of 2024
Tax Season Cessation Program
Experiencing: • Stress? • Lack of Sleep? • IRS induced Nausea?
Ready To Sell Your Practice? WE CAN HELP YOU!
Scan Here
Delivering Results - One Practice At a time Sherif Boctor Sherif@APS.net
888-783-7822 X1 www.APS.net
THE WASHINGTON CPA
CONTENTS
WINTER 2024
www.wscpa.org • memberservices@wscpa.org Tel 425.644.4800 170 120th Ave NE Ste E101 Bellevue, WA 98005
BOARD OF DIRECTORS Andrew Brajcich Chair Sarah Funk Vice Chair Ed Ramos Treasurer Writu Kakshapati Secretary Sara Bailey Immediate Past Chair Kimberly D. Scott President & CEO Richard Burger Mackey Ursula Perkins Norman Haugen Bryce Rassilyer Courtney Hirata Liz Redmond Jamie Hueners Jillian Robison Kelly Nelson Joel Williams CHAPTER BOARD CHAIRS Charles Meyerson Everett Area 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. Periodicals postage paid at Bellevue, Washington and additional mailing offices. Cover Graphics illustrations: © iStock/Karazbaev Rusian, © iStock/ Nik01ay
POSTMASTER: Send address changes to The Washington CPA, c/o WSCPA, 170 120th Ave NE Ste E101, Bellevue, WA 98005.
www.wscpa.org
On the Cover Advocating for the CPA Profession in Washington 13 How to Build a Winning Culture 16 Oh BOI: The Corporate Transparency Act and CPA Firms 20 Top Regulatory Issues of 2024: 27 What Businesses Should Know and Prepare For
Spotlights Unlocking Team Potential: 10 Wordle’s Unexpected Leadership Lessons 2023: A Year to Remember at the WSCPA 12 New Reporting Requirements: 14 BOI Reports Required by Recent Law
Departments Membership News 4 Leadership Lens 6 Washington CPA Foundation Scholarships 8 WSCPA Peak Firms 9 Upcoming CPE 28 Classified Ads 30
@WashingtonCPAs
The Washington CPA Winter 2024
3
MEMBERSHIP NEWS
Accounting is STEM Last year, the AICPA and all 54 State CPA Societies, including the Washington Society of CPAs, sent a letter to the Department of Homeland Security (DHS) requesting DHS recognize accounting under the “T” for Technology in Science Technology Engineering Math (STEM) education. The letter specifically requested that six accountancy programs be added to the Classification of Instructional Program (CIP) code list maintained by DHS’s STEM Designated Degree Program List. Should these codes be added to the list, colleges and universities across the country could tap into a deeper pool of STEM-designated grant money to enhance their accounting programs and grow their student bodies. The letter leans heavily into the new skills accounting students are acquiring to both use existing tools and to develop new technology tools that drive change and advancement in the accounting profession. DHS is expected to release the updated STEM CIP code list in summer 2024. Learn more about this initiative at aicpa-cima.com/resources/landing/accounting-is-stem
CPE
Export CSV File of Your WSCPA CPE Transcript for License Renewal
New Resource: Keep Up with NPAG's Developments to Attract More People to Accounting
WSCPA is pleased to announce a new feature to help you easily upload your required CPE courses to the WBOA system during license renewal. Now, for courses that you have taken from the WSCPA, or courses that you have uploaded to the WSCPA LCvista CPE Suite, you can download a .csv file which can be uploaded directly into the WBOA system.
The National Pipeline Advisory Group’s profession-wide effort to tackle the talent shortage and attract more people to a rewarding career in accounting now has an online presence at accountingpipeline.org. Kimberly Scott, CAE, President & CEO of the WSCPA, and Thomas Neill, CPA (retired), WSCPA member, were named to serve on NPAG last summer.
Learn more on the WSCPA blog at wscpa.org/transcript
4
The Washington CPA Winter 2024
www.wscpa.org
MEMBERSHIP NEWS
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 $600 value) at no cost to WSCPA members. Verifyle is an extremely simple-to-use cloud storage and sharing tool that offers: • The most powerful encryption technology available on the web (Cellucrypt®️)—each individual item stored or shared in Verifyle is secured with six unique encryption keys • A polished and professional way to present yourself to existing and prospective clients, while keeping your communications private and secure • Digital signatures capability for requesting clients sign, date and initial documents inside Verifyle To take advantage of this free benefit: Sign up at verifyle.com/wscpa using the email on your WSCPA member account.
WSCPA Membership Summit 2024 June 11 | Members-Only Experience Event June 12 | WSCPA Membership Summit | Bellevue | 8 CPE credits Join us on June 12 for the WSCPA Membership Summit! This exclusive, free event is an opportunity to connect with fellow accounting professionals, exchange ideas, and gain valuable insight into the latest happenings affecting the profession. Throughout this multi-track event, you will have the opportunity to engage with your peers, participate in interactive educational sessions while earning complimentary CPE. Don’t miss out on this chance to network with like-minded peers and celebrate the accounting profession. Kick off your Membership Summit experience with the Members-Only Experience on June 11. Stay tuned for details. Register now at wscpa.org/summit24 photos: © Shelly Oberman Photography
www.wscpa.org
The Washington CPA Winter 2024
5
LEADERSHIP LENS
International Tax Accountant to Professor Andrew Brajcich, CPA, JD, LLM I have been very fortunate in my career. I was working in international tax and enjoying every aspect of it, except maybe billing. I had no plans to change. I loved what I did and with whom I worked. Then, through some undeserved luck, I fell into the only job conceivably better than the one I had. That was 12 years ago when I joined academia. I am fortunate today because I get to introduce students to a noble and worthy profession. At first the appeal of accounting is something akin to solving a puzzle. Everything balances nicely in the principles class. Homework can be like completing a crossword. As students rise to upper division coursework, the most honed recruiting system across campus kicks into high gear. Firms and the WSCPA visit campus, hold networking events, review resumes, and start the interview process. By junior year, accounting students are light years ahead of their peers pursuing other fields of study when it comes to professional development. This doesn’t happen on accident. It’s the product of an intentional profession. One that recognizes its role in a functioning society and realizes the importance of developing the next generation. While much of what we do looks toward the past, accountants by nature plan for the future. There’s not an organization in the world without the need for someone with accounting acumen. I often tell students that they will never have trouble volunteering for a non-profit board and when they do, be prepared to receive an offer for the treasurer position. We have a skillset that few possess, but every organization needs. At times we work long hours but that comes with responsibility. We are a safeguard, a gatekeeper, the front line for the financial markets and a functioning tax system, and there’s not a business decision of consequence that doesn’t require our input. I’ve traveled from London to New York to Seattle meeting a variety of business professionals in a variety of industries and nearly all advise students to take more accounting, regardless of their career goals. Today, accountants are playing an increasing role in measuring non-financial factors under the environmental, social and governance (ESG) umbrella. A background in accounting leads to a wide variety of advancement possibilities in accounting and other fields. I personally know of litigators, politicians, HR professionals, investors, and even a physician, all of whom credit accounting for much of their success. The CPA designation opens doors to advancement. Forty-four percent of CFOs hold a CPA designation.1 We all desire to have a positive impact in some way. Accounting 1 https://www.journalofaccountancy.com/news/2022/jan/diversityrises-cfos-ceos-crist-kolder-report.html
6
The Washington CPA Winter 2024
is a tremendous vehicle in getting to a position that achieves this. I enjoy educating the next generation of accountants and encourage students to study accounting for this reason. So why are fewer people choosing careers in accounting? It’s a question many are asking. I think the work done by the nonpartisan public policy organization Center for Audit Quality provides some of the best insights. The illustration on the following page, Reasons for Not Choosing Accounting as a Major, is from its July 2023 report, Increasing Diversity in the Accounting Profession Pipeline. This report analyzes responses from over 1,800 students and recent graduates. An interesting misconception for me is “Not good enough at math to become an accountant.” We don’t do math. We do arithmetic. For those at the WSCPA, this is not news. They’ve been at the forefront of addressing these issues for years. In fact, Kimberly Scott, WSCPA President & CEO, is among the select few to be serving on the AICPA’s National Pipeline Advisory Group. The WSCPA has long advocated for the profession in ways many do not realize. If they did, every CPA in the state would be a member. Their efforts have been critical in enhancing access to education, mentoring first generation college students, providing resources for professionals, and lobbying on behalf of the profession in Olympia and DC. (To learn about the many ways the WSCPA is advocating every day, visit wscpa.org/advocacy.) The WSCPA also provides networking opportunities, such as events throughout the state, for members. One event, held last October was so large that it required a change in venue. More than 100 students from area universities and community colleges attended the WSCPA Spokane Chapter’s Boos and Brews trivia event. For students looking to embark on a rewarding career in accounting, there is no better way to tap into an extensive knowledge base and network than to join the WSCPA. I encourage my students to get involved with the WSCPA because it’s an investment in their future and in the future of the CPA profession. If you are ready to get more involved with the WSCPA this year, reach out to memberservices@wscpa.org and we’ll help you find ways to engage.
Chair of the Board of Directors, Andrew Brajcich, CPA, JD, LLM, is the Jud Regis Endowed Chair of Accounting, Graduate Accounting Director, and Professor of Accounting at Gonzaga University. You can contact Andrew at brajcich@gonzaga.edu. Graphics: © iStock/CreativeDesignArt, © iStock/AzFree, © iStock/phototechno
www.wscpa.org
LEADERSHIP LENS
Law
Accounting
Finance
A background in accounting leads to a wide variety of advancement possibilities in accounting and other fields.
REASONS FOR NOT CHOOSING ACCOUNTING AS A MAJOR AMONG NON-ACCOUNTING MAJORS (N=939) Major Reason
Part of Reason
LACK I NTEREST/ PASSI ON
32%
HI GHER STARTI NG SALARY W/ OTHER MAJOR
29%
DON' T WANT TO PURSUE 1 5 0 HRS FOR CPA
28%
NOT GOOD ENOUGH AT MATH TO BECOME AN ACCOUNTANT
28%
CAN' T AFFORD 1 5 0 HRS; NEED TO START EARNI NG
25%
70% 61% 57% 60% 52%
DON' T HAVE SKI LLSET
24%
COURSES ARE TOO DI FFI CULT
23%
61%
NOT MUCH VARI ETY I N CAREER PATHS
23%
59%
57%
CONSIDERED ACCOUNTING
DID NOT CONSIDER
(n=480)
(n=451)
ACCOUNTANTS WORK LONGER HOURS THAN I WANT TO
22%
53%
Major
Major + Part of
Major
Major + Part of
TOO NI CHE/ SPECI ALI ZED
20%
53%
19%
45%↑
78%↑
DON' T SEE PEOPLE LI KE ME REPRESENTED I N PROFESSI ON
18%
60% 67%↑
27%
55%
I DON' T WANT TO TAKE THE CPA EXAM
18%
56%
60%
PEERS WHO HAVE PURSUED ARE UNHAPPY
18%
55%
23% 31%↑
61%
20%
44%
26% 26%↑
62%
Reproduced and used with permission from Center for Audit Quality, July 2023 report, Increasing Diversity in the Accounting Profession Pipeline.
46%
32% 32%↑
59% 60%↑
23%
56%
20% 25%↑
60% 63%↑
20%
55%
26%↑
57%↑
19%
49%
24%↑
56%
15%
50%
19%
47%
16%
45%
18%
57% 60%↑
18%
54%
15%
51%
21%
www.wscpa.org
54%
24% 30%↑
58%
The Washington CPA Winter 2024
7
FOUNDATION SCHOLARSHIPS
Charting Your Academic Path You could receive a $2,000 scholarship! Applications are open to rising first- and second-year college students interested in the accounting profession.
Apply by April 14, 2024
WSCPA.ORG/CHART
Where can
o c u c n t Atake you? i n g Win a $5,000 Accounting Scholarship! The Washington CPA Foundation is excited to be able to offer over $500,000 in scholarships for students in Washington State. Students entering junior year or higher in the fall of 2024, fifthyear, master's, and PhD candidates, as well as, community college transfers are encouraged to apply for this scholarship level.
AWARD AMOUNT $5,000 - $10,000* * $10,000 scholarships for master’s / PhD candidates
APPLICATION DEADLINE February 14, 2024
APPLY NOW!
BECOME A SCHOLARSHIP REVIEWER
WSCPA.ORG/CPASEAS
Help us give away over $500,000 in accounting scholarships! TIME COMMITMENT 12-20 hours Scholarship applications are reviewed in your home or office through our secure, online portal with a provided scoring matrix and guidelines. Contact Benjamin Warren at bwarren@wscpa.org
8
The Washington CPA Winter 2024
www.wscpa.org
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
CURRENT PEAK FIRMS Affinity Group CPAs & Consultants
Larson Gross PLLC
Alegria & Company PS
Lodder CPA PLLC
Baker Tilly LLC
Martin Bircher Thompson PC
Brantley Janson Yost & Ellison
McDevitt & Duffy CPAs
Clark & Associates CPA PS
Moss Adams LLP
Cordell Neher & Company PLLC
Nicholas Knapton PS
Dwyer Pemberton & Coulson PC
Norris Lutkewitte PLLC
Eide Bailly LLP
Northwest CPA Group PLLC
Falco Sult & Co
Opsahl Dawson PS
FBCPA Group PS Inc
Ryan Jorgenson & Limoli PS
Finney Neill & Co PS
Shannon & Associates LLP
Greenwood Ohlund PS
Smith & DeKay PS
Hauser Jones & Sas
Starr & Leaf CPA Group PLLC
Hellam Varon & Co Inc PS
StraderHallett PS
Hunt Jackson PLLC
Sweeney Conrad PS
Hutchinson & Walter PLLC
The Doty Group PS
Jacobson Jarvis & Co PLLC
The Myers Associates PC
James Russell PLLC
Vine Dahlen PLLC
Johnson & Shute PS
Werner O'Meara & Co PLLC
Johnson Stone & Pagano PS
Willet Zevenbergen & Bennett LLP
King & Oliason PLLC
Your Financial Solutions LLC
NEW PEAK FIRMS
9
The Washington CPA Winter 2024
Photo: © iStock/lightphoto
Kovarik & Kim PLLC
www.wscpa.org
LEADERSHIP
976 4/6
988 3/6
980 3/6
899 4/6 984 5/6
Unlocking Team Potential: Wordle’s Unexpected Leadership Lessons Monette Anderson, CAE As we get started on a new year and approach busy season, it’s a good opportunity for leaders to cultivate a culture of resilience within their teams. Charles Duhigg, in The Power of Habit, highlights how simple actions like making your bed can link to better productivity and overall health. Echoing this, retired Admiral William H. McRaven in a commencement speech said, "If you make your bed every morning, you will have accomplished the first task of the day, giving you a small sense of pride and encouraging you to do another task, and another."
hit me: my team had already established a daily ritual like this with the game Wordle. During the remote-work era prompted by COVID-19, we began sharing our Wordle scores in a group chat, celebrating wins and offering support on challenging days (Queue? Better luck next time). While this seems trivial, I realize its impact has been significant:
Reflecting on this, I pondered what the team equivalent of making your bed could be. In a team setting, particularly during high stakes or stressful times, how can a similar practice be employed? Maybe a team huddle where everyone shares goals or encourages the team to complete one task before they open their email and report what it was on a Teams or Slack channel? These all seemed favorable options. Then it
10
The Washington CPA Winter 2024
www.wscpa.org
LEADERSHIP 1.
Cultivating a sense of team cohesion: Just as making your bed allows you to start the day with a sense of personal accomplishment and order, a team ritual like a morning Wordle game fosters a sense of belonging and engagement. It’s a morning ritual where everyone comes together outside a work-related meeting or discussion, to have a shared experience that’s both enjoyable and mentally stimulating.
2.
Setting the Tone: These few minutes of camaraderie encourage a mindset of humor, competition and lightheartedness that becomes essential during stressful periods. Rituals like these can become a cornerstone for the day and team members feel connected, empowered, and energized to tackle the day’s challenges.
3.
Reinforcing Resilience: Routine and discipline is a key component of resilience. Grounding rituals like a morning or evening routine provide a sense of stability and normalcy that we can lean into when things become hectic or stressful. Amidst our daily chaos and to-do lists, there’s a constant that the team can rely on.
4.
Supporting an optimistic outlook and competence mindset: Tackling Wordle early in the day aligns with the idea of activation behaviors that promote goal achievement, as mentioned in Resilience: The Science of Mastering Life’s Greatest Challenges, a book by Steven Southwick and Dennis Charney. It builds a sense of early accomplishment and a positive mindset, fueling momentum for larger tasks.
www.wscpa.org
As a leader, I think the benefit to maintaining such a simple practice underscores the importance of mental well-being. It reminds me that while work and accomplishing tasks is important, so is the team’s emotional and psychological state. It’s a balance that’s crucial to our company culture and values. As we gear up for the demanding times ahead, I encourage leaders to consider small, daily practices like the Wordle challenge to bolster team resilience. If you start a daily Wordle challenge, I hope you’ll report back and share with me! In line with this spirit, our WSCPA Peak Firm Program supports firms by enrolling all eligible staff as WSCPA members, offering benefits like simplified billing, free job board listings, recognition, and a Peak Firm logo for your website. Your staff benefit from shared resources and knowledge sharing. Peak Firms can now enjoy another new benefit, one annual in-house CPE or staff training focused on organizational and personal development topics such as productivity, inclusive meetings, or professional updates. For more information about the Peak Firm Program and how it can support your team during this busy season and beyond, feel free to reach out to me directly. Monette Anderson, CAE, is WSCPA Vice President of Membership and Education and Executive Director of the Washington CPA Foundation. You can contact Monette at manderson@wscpa.org. illustrations: © iStock/ikhwan abdullah, © iStock/lemono photo: © iStock/fizkes
The Washington CPA Winter 2024
11
2023 WSCPA Successfully launched the inaugural Membership Summit, a free full-day conference for WSCPA members. Enhanced member benefits with up to 20 free credits of CPE annually. Launched new functionality to easily download your CPE transcript for license renewal through the My CPE Tracker on your member dashboard to upload directly to the Washington State Board of Accountancy. Hosted 40 impactful in-person events, drawing a total of 1,341 attendees. Vigilantly monitored and responded to over 70 bills in the 2023 legislative session.
Collaborated with the Washington State Board of Accountancy to expand the CPA exam window and reinstate exam credits lost during the pandemic.
Washington CPA Foundation: Awarded 94 scholarships totaling $554,000. Granted $30,000 to organizations fostering diversity in the accounting pipeline. Mobilized 30 CPA volunteers to speak in community schools about the profession.
12
The Washington CPA Winter 2024
www.wscpa.org
ADVOCACY
Advocating for the CPA Profession in Washington: The Latest Developments Learn more about the following advocacy developments at wscpa.org/advocacy-news
Hill Day 2024 One of the year’s most important advocacy events will happen on January 18, 2024. Members will gather in Olympia and meet with legislators to discuss tax policies and other issues affecting the profession. This year the WSCPA will be running legislation and legislators will be asked to support the legislation. WSCPA President & CEO, Kimberly Scott, CAE, sees this as an essential event for the Society. She said, “The meetings we have with legislators when we travel to Olympia as a whole profession builds the strength and trust we have with legislators from across the state and aisle as they face many challenges during a legislative session.”
A Call for You to Reach Out to Congress to Delay BOI Reporting Requirements New beneficial ownership information reporting requirements will affect small businesses including small CPA firms starting Jan. 1. The U.S. House of Representatives passed H.R. 5119, Protect Small Business and Prevent Illicit Financial Activity Act, providing a one-year delay to the start of the rule. On December 15, 2023, WSCPA members were encouraged to reach out to U.S. senators to ask them to pass the bill.
The Latest on Washington’s Capital Gains Tax It is no secret that the new Washington Capital Gains Excise Tax, which taxpayers have begun paying for the 2022 tax year, has been a controversial and complex tax. In feedback shared with the DOR on October 30, 2023, the WSCPA highlighted the ambiguities in the language and additional unanticipated problems which came to light during the recently-concluded tax season.
Washington CPA Exam Credit Reinstatement: Hundreds of CPA Candidates Can Continue Their Journey to CPAs Thanks to New Program At the Washington Board of Accountancy (WBOA) meeting on October 20, a CPA exam credit reinstatement program was adopted and is effective immediately. As a result of this program, Washington exam candidates who lost CPA exam credits between January 30, 2020, and December 31, 2023, will have until June 30, 2025, to complete the remaining sections of the exam.
www.wscpa.org
Pictured in Olympia: Sara Bailey, CPA, former WSCPA Chair, Kimberly Scott, CAE, President & CEO of the WSCPA and Andrew Brajcich, CPA, JD, LLM, current WSCPA Chair.
Washington Now Has Longest CPA Exam Window in the Nation The Washington State Board of Accountancy adopted a rule change to allow CPA candidates in our state to have 36 months to complete all four sections of the CPA exam. Get Involved Join the Government Affairs Committee, become a guest writer for our advocacy blog, become a WSCPA key contact or contribute to the CPAPAC. Learn more about all of these advocacy opportunities at wscpa.org/become-advocate.
The Washington CPA Winter 2024
13
COMPLIANCE
New Reporting Requirements BOI Reports Required by Recent Law Stuart R. Josephs, CPA
The Corporate Transparency Act (CTA) was enacted as part of the National Defense Act for fiscal year 2021. Under the CTA, millions of entities must report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN).
Who Must Report Reporting is required for all domestic and foreign entities that have filed formation or registration documents with a U.S. state or Indian tribe, unless they meet one of 23 specified exemptions. Two of the major exemptions are for: I. Large operating entities that meet all of these criteria: A. Employ more than 20 employees in the U.S.; B. Had gross revenue or sales over $5 million reported in the previous year’s federal income tax return; and C. Have a physical office in the U.S. II. Publicly traded companies that have registered under Section 102 of the Sarbanes-Oxley Act.
Due Dates Entities created or registered before 2024 must file their BOI report by Jan. 1, 2025. Entities created or registered after 2023 must file their BOI report within 30 days. Note: FinCEN proposed extending this 30-day deadline to 90 days for entities created or registered after 2023 and before 2025. Entities created after 2024 would continue to be required to fill their initial BOI reports within 30 days of their creation or registration. Reporting entities that have changes to previously reported information or discover errors in previously filed reports must file a new report within 30 days.
Information Required to be Reported The entity must report the following: • The entity’s legal name and any trade or DBA names; • Business address; • State or tribal jurisdiction of formation or registration; and • IRS Taxpayer Identification Number.
14
The Washington CPA Winter 2024
In addition, each reporting entity must provide the following on its beneficial owners (and its applicant(s)—for newly created entities): Name; date of birth; address; and unique identifying number and issuing jurisdiction from an acceptable identification document and an image of that document.
Severe Penalties for Noncompliance • •
Civil Penalties: Up to $500 per day that a violation continues. Criminal Penalties: These penalties include a $10,000 fine and/or up to two years in prison.
Summary of BOI Report Format The following is a summary of the BOI report: Filing Information: 1. Type of filing: a. Initial report; b. Correction of prior report; c. Update of prior report; or d. New exempt entity. 2. Date prepared. The report then contains these categories: Part I–Reporting Company Information Part II–Company Applicant Information Line 20 under Part II requires the following to be submitted: a. State-issued driver’s license; b. State/local tribe-issued ID; c. U.S. passport; d. Foreign passport; or z. Unknown. Line 31 requires the document’s number to be provided. Line 32 requires the country or jurisdiction issuing the identifying document to be shown, if known. If the United States is shown and the document is issued by a state, that state then must be shown. If unknown, a box “z” must be checked. Line 33 requires an image of the identifying document to be attached. Instructions for the upload process will be provided at this point.
www.wscpa.org
COMPLIANCE Part III–Beneficial Owner Information Line 36 under this category requires the Beneficial Owner’s FinCEN ID to be provided. If not, the following must be shown: • Full legal name; • Date of birth; • Residential address; and • Form of identification and issuing jurisdiction. The information required under this category is comparable to the information required under Part II for company applicants.
This article originally appeared in the December 2023 issue of California CPA magazine. Reprinted with permission from CalCPA.
More Guidance
illustrations: © iStock/sesame, © iStock/shapecharge
Stuart R. Josephs, CPA, has a San Diego-based Tax Assistance Practice that specializes in assisting practitioners in resolving their clients’ tax questions and problems. Josephs, a past chair of the CalCPA Committee on Taxation’s Federal Subcommittee, can be reached at (619) 469-6999 or stuartrjosephs@yahoo.com.
Additional guidance FinCEN provided on the BOI reporting requirements includes: • Updated FAQs (May 11, 2023); • BOI FAQs for clients (May 11, 2023); • BOI client letter (Oct. 18, 2023); and • A small entity compliance guide. Caution: It is uncertain whether a CPA’s involvement in preparing and/or filing these BOI reports would be the unauthorized practice of law. For guidance, the appropriate authorities should be contacted. Learn more Visit the article on page 20, "Oh BOI: The Corporate Transparency Act and CPA Firms" to learn more.
www.wscpa.org
The Washington CPA Winter 2024
15
How to Build a Winning Culture
16
The Washington CPA Winter 2024
www.wscpa.org
BUSINESS CULTURE
How Can You Build a Winning Culture at Your Organization? Insights from WSCPA Businesses of the Year During the October 18, 2023, WSCPA Member Exclusive webinar, Monette Anderson, CAE, WSCPA Vice President of Membership & Education, talked with previous WSCPA Business of the Year recipients about how they build a winning culture at their firms. Here is an excerpt from that conversation. To watch a recording of the webinar, scan the QR code at the end of the article.
Jason Mallon, CPA, Partner, Greenwood Ohlund
Greenwood Ohlund: 2022-23 WSCPA Business of the Year, Greenwood Ohlund sets a remarkable example of a firm with a strong culture, characterized by engaged staff and leadership. As a WSCPA Peak Firm, they actively participate in numerous committees and volunteer roles, and demonstrate a deep commitment to our student members through their recruitment and internship programs.
Nika Toce, CPA, MBA, Managing Partner, Hutchinson & Walter CPAs Hutchinson & Walter: Hutchinson & Walter CPAs exemplifies a firm that has made the WSCPA a part of their firm’s culture. They won the award in 2021-22 and were one of the first firms to sign up for the WSCPA Peak Firm Program, which is a commitment to support all CPAs and future CPA (student) memberships. Hutchinson & Walter staff embody community leadership through their support and encouragement of WSCPA involvement at the volunteer level, with many of their staff serving on WSCPA boards and committees. They actively support their staff's professional development through WSCPA CPE and have been supportive partners in WSCPA student events including our firm fairs and outreach activities.
www.wscpa.org
Ed Ramos, CPA, Shareholder, DP&C
DP&C: DP&C won the Business of the Year distinction in 2020-21. Based in Tacoma, they have supported the WSCPA with investing in staff memberships and encouraging their members to volunteer for many years. The firm also supports a named diversity scholarship. Ed also served on the AICPA’s original Diversity and Inclusion Committee and brought that commitment back into the organization. DP&C have a strong connection with their local community and often partner with nonprofits to help with fundraising and encourage their staff to volunteer and engage with organizations for which they have a passion. What initiatives have you implemented at your firm to encourage your staff to network and advance professionally? Toce: We have tried to help our staff make progress in their careers by documenting all the skills and expectations that we expect employees to take on at each level of their career. We want to help them understand when in their career they should also be networking. We provide examples of where to network and encourage them to explore different ways to network to find an avenue that resonates with them individually. The key is that we all get to demonstrate our dedication to our craft and our passion for what we do and be engaged with the communities that we serve. Mallon: We put the ownership in the employees’ court, but we also include networking (and all its different formats) as a component of the evaluation structure, which helps to incentivize networking. Our partners understand that it takes all different types to successfully run a firm and not everyone is going to be a rainmaker or comfortable with networking at events. Sometimes networking is showing up at work with the client base and providing exceptional service, deliverables, and communication. Networking and advancing professionally comes in many different formats, and that is why we put the onus in the hands of the employees themselves (i.e., let them choose their path). Ramos: I remind our staff that as CPAs, our middle name is “public.” It's important to be out there in public. When networking, the advice I give is find something that you’re passionate about. It makes networking more interesting and more exciting to be able to go out and network and volunteer in areas that really mean something to you.
The Washington CPA Winter 2024
17
BUSINESS CULTURE How does your firm support lifelong learning and continuous education for employees? Toce: One of the things that we've really found at our firm is the people who have the most satisfaction from their work are the people who love what they do the most, and people usually enjoy doing things they are good at. People will gravitate toward the type of work that they're really excited about, and as an employer, it's our job to help them figure out what those areas are, where they're particularly gifted, or where they really stand out in a group of 35 people. As a team, we really support each other, because you can't be an expert in all things. But we're big enough that when we help each other grow in the areas of our biggest interest, we can support each other with that knowledge. And we all love doing that. Ramos: Aside from the required CPE that everyone needs to take, we typically look for some CPE to help employees advance their careers (leadership, management skills that are outside of the typical curriculum). We feel that from a lifelong learning perspective, this type of training will help them. Mallon: I agree with that, Ed. I recall one partner who showed a genuine interest in my growth and effectively told me to follow what interested me. This was when I was still contemplating industries I wanted to focus on, which led to me to begin working with wineries, breweries, and independent schools. I ended up leaving CPA land for several years where I ended up being a CFO at an independent school furthering my knowledge base outside of the firm lifestyle and culture. When talking with team members, I try to help them identify areas of interest to specialize in and encourage them to pursue their passions. It’s invigorating to work to become an expert. Even if you're focused on a specialized area, it's important to have that well-rounded knowledge. How has your firm adapted to support and develop programs in the area of remote work? How did your organization adapt during the pandemic and how has it evolved since that time? Mallon: I love remote work and only have one client in which I go to their office. I go into our firm office once a month, which is located in Ballard. As baby boomers continue to retire and fewer graduates choose accounting as a profession, the firm has to remain flexible and pivot. In order to recruit the best employees, there has to be flexibility. Some organizations are requiring people to come back to the office for three days a week, which probably creates resentment for certain team members. For example, when employees do commute in, they may drive an hour fighting traffic only to arrive at their cubicle in time to log onto their Zoom meeting because not everyone has decided to come in that day. That is wasting that team member’s time! Our firm has found that when we collaborate utilizing Teams or Zoom, we can still create that in-person vibe. There are some significant deficiencies with remote work that I
18
The Washington CPA Winter 2024
think over the coming years we will be battling and addressing, training being a significant one, but you must pivot into this new realm because Pandora's box has been open, and I don't think you're going to see it get closed anytime soon. Toce: Our firm has changed a lot during the last five years. It has been a tremendously fast pace of growth. Prior to COVID, most of our client meetings were in person. When COVID hit we all scrambled to learn how to use Zoom and Teams quickly, and, thankfully, that works really well for us. For a lot of reasons, I think remote work is essential and we as CPA firms must figure out how to make it work long term, despite the deficiencies that Jason mentioned. And then there's also a more important piece for me, which is equity. Our firm is in Bellevue, an expensive area in which to live, and I don't want my employee base to be restricted to either people of the socioeconomic status who can live close to the firm or need to spend three hours a day commuting. As employers, we have a responsibility to our employees to ensure remote work is an option. We do a lot to help the firm still feel like a team, despite about half of our employees working almost exclusively remotely. Some just work in the office, but we have weekly lunch-and-learn meetings where everyone can log in and ask questions. I also meet weekly with most of the remote employees, so I can be aware of where they are mentally and try to help them feel as if they're not just isolated in a bubble working by themselves, which is easy to do with fully remote work. And I'm sure I'm missing a lot of things where there is a lot of room for improvement, but that's something we're working on. Ramos: I love remote work as well. At our firm, we require two days a week in the office and one of those days is Thursday. We want everyone to be there at one time, to continue to build our firm culture. We do have a few full-time remote employees, where we were able to work out an arrangement for them to be fully remote and it works great. It's just continuously evolving and even though we have a policy around it, we're still monitoring it and seeing if it works. It really is not a one-size-fits-all situation. Some people work great under the remote environment, and some don’t, and from a productivity perspective, it’s evident whether the remote environment works for someone or if it doesn’t. How do you handle the situation where there are positions that don’t lend themselves to being remote positions? Ramos: We do have a receptionist who's in the office and there isn’t the option for remote work in that position. For new staff, we are asking them to be in the office at least for the first year until they are acclimated to the firm’s way of doing things.
www.wscpa.org
BUSINESS CULTURE What steps have your firm taken to foster an inclusive environment for staff members of all backgrounds? How do you manage your personal bias when evaluating reports for career progression/promotion/opportunity at your firm? Toce: We have a diverse workforce. We have about 60% women and about 30% first- and second- generation immigrants who speak at least two languages. That has come easily to our firm as we focus on seeing an applicant’s skills and talent as shown on the resume, how much care they have put in their resume, and then interest level, as opposed to having a preconceived notion of the type of person we are looking to hire. We have employees at our firm who have been here for over 20 years. We have employees who have left and come back because it's a good place to work. I think is a good starting point for new employees too, where clearly a lot of people have had a good experience working here for a long time, and I hope that gives them the courage to carve out their own spot in our firm. Ramos: There's a saying that I heard: treating someone equally doesn't necessarily mean treating them all the same. Everyone may have different needs. Maybe someone needs more leadership training or communication training than somebody else. It's important to recognize what everyone's needs are and treat them equally and really having an inclusive workforce and working all together. I think the key is to recognize that we all have biases and being mindful of that as we look at candidates and do the best we can to put those biases aside. Mallon: During our evaluation process, our partner group works with a facilitator to coach all of us to look for specific biases. The coach asks us pointed questions during this process. In addition, when we go through the evaluation process, our HR consultant reviews the evaluations and looks for bias and asks questions, such as, “Is there some recency bias here?” This helps us actively consider and try to address bias and ensures we're creating a fair workplace for everyone.
that the clients are then able to get the services that they need. If your team members are the number one priority, your clients automatically become the number one priority. Ramos: During our busy time, including tax season, we have a Teams meeting every Monday morning, just to bring everyone together, and we do a drawing. On Thursdays, the day we all work in the office, we have lunch, or we'll have a happy hour, or something special going on. Hopefully that helps with some of the morale. Toce: I make salads for my staff five days a week during tax season. I feed those who come into the office healthy, homecooked food that meets their dietary restrictions. My staff joke that the reason they show up for work in the morning is because they know they're going to get lunch. I've done this since I was an employee here. I raised my hand in a staff meeting and asked if we could get healthier food in the lunchroom. They said, “If you can make it happen, we will reimburse you for the cost.” That's what I love about this firm. Employees who want to contribute to making their colleagues’ lives better have that opportunity. We all make lunch together every day now and it's nice to have that outlet. illustrations: © iStock/Karazbaev Rusian, © iStock/Nik01ay
Watch the full interview: Follow the QR code or visit www.youtube.com/watch?v=3oRRPzWmDKc
Toce: My best friend is a nurse and part of her nursing program required her to take Harvard implicit bias tests. Especially in nursing, if you have a bias when you're treating somebody, it can affect care. Similarly, if you have a bias that you're unaware of, it may affect how you treat an employee or a client. It’s important to be aware of your biases, whether you are in a supervisory role or are an employee. How do you keep firm staff morale high, especially during busy or challenging periods like during tax season? Mallon: I want my team to work between 40 and 45 hours per week, and I mean it. From a CFO and accounting department perspective, I've created a capacity model that limits the staff and seniors to a certain number of clients each month. My department focuses on utilizing KPIs to make sure that individuals at home are doing what they say they're doing, and
www.wscpa.org
The Washington CPA Winter 2024
19
RISK MANAGEMENT
Oh BOI: The Corporate Transparency Act and CPA Firms J. Michael Reese, J.D., LL.M, and Sarah Beckett Ference, CPA Enacted as part of the 2021 National Defense Authorization Act and amending the Bank Secrecy Act, the Corporate Transparency Act (CTA) is intended to close a perceived information gap related to money laundering and other illicit acts. The CTA requires reporting companies to self-report information to the Treasury Department’s Financial Crimes Enforcement Network (Fin-CEN) about their beneficial owners and company applicants. Determining whether a company is considered a “reporting company” and whether an individual is considered a “beneficial owner” or a “company applicant” under the CTA is complex, and failure to comply with the CTA can result in civil or criminal penalties (or both). For instance, the failure to comply with the statutorily-mandated reporting timeframes regarding the filing of initial or updated reports could result in a $500-per-day penalty (up to $10,000) and up to two years of imprisonment. Additionally, any person who, without authorization, knowingly discloses or uses beneficial ownership information (BOI) can be fined $500 per day (up to $250,000) and imprisoned for up to five years. Though some questions regarding the CTA’s compliance requirements and timing remain unanswered, it is generally accepted that the CTA will at minimum have an immediate, short-term impact on many small and midsize businesses as well as sole practitioners — the bread-and-butter client base for most CPA firms. Given the nature of the CPA-client relationship, a client’s first inclination may be to turn to their CPA for advice on the CTA rather than their attorney. CPAs who decide not to provide CTA-related services could still face professional liability risk for a client’s noncompliance in certain situations. Because of the significance of the penalties associated with noncompliance, such claims may be severe.
Addressing Allegations of a Failure to Advise
No small impact 32.6 million The approximate number of businesses the Financial Crimes Enforcement Network (FinCEN) estimates will need to comply with the Corporate Transparency Act in the act’s first year. Source: FinCEN final rule, published Sept. 30, 2022.
20
The Washington CPA Winter 2024
If a client suffers a loss that can be traced to CTA noncompliance, they may allege that the CPA failed to advise them. To help reduce the likelihood of this claim assertion, consider sending a newsletter or other general client notification letter to all clients informing them of the CTA and its reporting requirements. Retain a copy of the newsletter as well as the distribution list. In addition, unless specifically engaged to provide CTA assistance, for the avoidance of doubt, include a provision in all engagement
www.wscpa.org
RISK MANAGEMENT letters, regardless of service, disclaiming a responsibility to do so. Including this provision helps defend against a client’s “you didn’t tell me” assertion and makes it clear to the client that they should not expect advice on this topic from the CPA. A sample provision follows:
Addressing the Risk of Providing Off-the-Cuff Advice Even if not formally engaged to provide services related to the CTA, you may find yourself in the middle of a dispute if you provide informal advice in response to a client’s “quick question” about the CTA and the client’s filing obligations. Answering one-off questions related to the CTA, if relied upon by a client, may not only result in bad or incomplete advice, but may also cross the line into the unauthorized practice of law, as discussed in the next section.
Insurance considerations Coverage for any claim asserted arising from CTA services will be evaluated based on the claim’s underlying facts, the insured’s policy language, and applicable state law at the time the claim is reported. In general, an accountant’s professional liability policy covers errors and omissions arising from the delivery of professional services. Professional services is typically defined in policy language and generally includes services performed in the practice of public accountancy. The CTA is new, and how the CTA fits within the existing interpretation of the practice of public accountancy is unclear. In addition, accountants’ professional liability policies typically exclude coverage for actual or alleged criminal acts. Depending on the state, a UPL violation may be treated as a criminal matter.
Providing ad-hoc advice is typically fraught with risk. Although directing the client to an attorney for advice may be the right answer, it may not always be the most popular. If compelled to provide a high-level response of a general nature in response to a client question, be sure to follow up the advice with written documentation to the client advising them of the limitations of your advice and direct the client to retain a qualified professional for a more detailed response. For more, read “Do I Really Need a New Engagement Letter for That?” (JofA, Professional Liability Spotlight, December 2022).
Other risks Other unique risks that may arise if the CPA provides CTA assistance to clients include added bank scrutiny as bank underwriters may ask CPAs to confirm a client’s CTA compliance in the form of a “comfort letter” or other documentation; heightened data security risk as CTA compliance may require gathering data that is not ordinarily requested or retained by the CPA; and the increased risk of an aiding and abetting claim if the CPA is accused of assisting a client who is found to have intentionally filed false reports.
Risk Considerations Related to the Provision of CTA Services
Risk management considerations related to CTA services If a CPA decides to provide assistance to clients related to their CTA compliance, understanding the risks presented by the service is a key step in understanding how to manage them. Careful planning and consistent application of risk management techniques including, but not limited to, a separate engagement letter that narrowly defines the scope of services may help mitigate risk. Consultation with your legal counsel and professional liability insurance carrier is strongly recommended to help you understand your risks.
Professional liability risk associated with assisting a client with CTA reporting obligations depends on many factors, including: (1) the development of regulatory guidance and case law related to the CTA; (2) details of a specific client’s situation, organization, and ownership; and (3) the nature and extent of assistance rendered. Any CTA service, however formulated, carries its own risk profile. CTA compliance assistance carries with it some unique risks not typically associated with CPA firm services: CTA and the unauthorized practice of law (UPL) Providing technical or interpretive advice on the CTA may rise to the practice of law. The “practice of law” is defined by the states, and many have an express prohibition against UPL. Accountants have a limited grant to “interpret” tax law under Title 26 of the U.S. Code (the Internal Revenue Code) via Treasury Circular No. 230 and state accountancy statutes. It is unclear whether interpretation of CTA statutes, which are under Title 31 of the U.S. Code (Money and Finance) is similarly permissible. Depending on a client’s fact pattern, CTA compliance may require affected entities to obtain legal advice and analysis.
J. Michael Reese is a risk control consulting director and Sarah Beckett Ference is a risk control director at CNA. For more information about this article, contact specialtyriskcontrol@cna.com. Continental Casualty Company, one of the CNA insurance companies, is the underwriter of the AICPA Professional Liability Insurance Program. Aon Insurance Services, the National Program Administrator for the AICPA Professional Liability Program, is available at 800-221-3023 or visit cpai.com. This article provides information, rather than advice or opinion. It is accurate to the best of the authors’ knowledge as of the article date. This article should not be viewed as a substitute for recommendations of a retained professional. Such consultation is recommended in applying this material in any particular factual situations. Examples are for illustrative purposes only and not intended to establish any standards of care, serve as legal advice, or acknowledge any given factual situation is covered under any CNA insurance policy. The relevant insurance policy provides actual terms, coverages, amounts, conditions, and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice.
Reprinted with permission of the Journal of Accountancy. illustration: © iStock/Nuthawut Somsuk
www.wscpa.org
The Washington CPA Winter 2024
21
BOOS & BREWS TRIVIA NIGHT · MURDER MYSTERY NIGHT, OLD HOLLYWOOD STYLE · FOUNDATION SCHOLARSHIP WINNERS RECEPTION
PHOTO GALLERY
22
The Washington CPA Winter 2024
www.wscpa.org
PHOTO GALLERY
FIRST ANNUAL WSCPA MEMBERSHIP SUMMIT · NOT-FOR-PROFIT CONFERENCE · PACIFIC TAX INSTITUTE · FRAUD CONFERENCE
It was wonderful to see so many faces at WSCPA events in 2023. Hope to see even more in 2024! Register for an upcoming conference or networking event in your area. Visit wscpa.org/events24 Photography: © Jack Wade Visual Collective and © Shelly Oberman Photography
www.wscpa.org
The Washington CPA Winter 2024
23
2023 SPONSORS
24
The Washington CPA Winter 2024
www.wscpa.org
ACCOUNTING FOR A NEW AGE
www.wscpa.org
The Washington CPA Winter 2024
25
26
The Washington CPA Winter 2024
www.wscpa.org
REGULATION
Top Regulatory Issues of 2024: What Businesses Should Know and Prepare For Mike Trabold Businesses have many responsibilities in their day-to-day operations, which importantly includes staying compliant with federal and state regulations. It can be challenging. Here are the regulatory issues that could impact businesses the most in 2024 to help employers and HR professionals prepare for what could be coming down the road.
Artificial Intelligence Regulation AI is transforming the business landscape, but it comes with challenges, like potential bias and privacy issues. Governments, including the US and the EU are taking steps to regulate AI with the Biden Administration’s Executive Order being a notable example. Individual states are also focused on guardrails for the responsible use of artificial intelligence. So, while AI can help improve efficiency and raise productivity, employers need to be aware of the risks, as well as the regulatory requirements in the jurisdictions where they conduct business.
Data Privacy and Cybersecurity Data breaches are on the rise affecting businesses of all sizes, including small businesses. Data breach notification, privacy and data protection laws continue to broaden across most states. To protect your business and your customers, you’ll want a transparent privacy policy about the data you collect, use, share and retain. You’ll also want a cybersecurity program as a key part of your business strategy. You should review these regularly to ensure they reflect changes to the business and comply with the rules and regulations in your state. Washington is among the states that have privacy laws taking effect in the coming year.
than 20 states, effective January 1, 2024, including Washington. Industry-specific requirements in the hospitality, retail and healthcare sectors continue as well. Keeping up with these constantly moving targets is a major challenge and compliance is crucial to avoid any potential financial penalties.
OSHA and Workplace Safety OSHA standards are evolving with increased inspections and new reporting requirements, so businesses must stay informed and prepared. Heat-related illness prevention and workplace violence plans are becoming key focus areas. As is often the case, states with OSHA-approved plans have gotten ahead of federal OSHA, so be sure to keep track of what is happening at both the state and federal levels.
Employee Retirement The Secure Act and Secure 2.0 are changing retirement planning for businesses. Smaller companies can take advantage of a pooled employer plan, or a PEP, which pools the assets of the employees of many businesses into one large plan. You can save time and money because most of the administration is handled by the pooled plan provider, who also helps reduce your fiduciary risk. There are significant tax credits, up to $16,500 over three years for starting a plan that includes auto enrollment. This is just a snapshot of what is expected in 2024. For a more in-depth look at these issues, check out the full article at https://www.paychex.com/articles/compliance/topregulatory-issues. Mike Trabold is Director of Compliance with Paychex. illustration: © iStock/girafchik123
Wage and Hour Regulations The US Department of Labor is expected to announce a new overtime rule soon. While there is some uncertainty on when the final rule will be released, you should prepare now for the potential impacts on budgets and timekeeping. Minimum wage increases happened in more
www.wscpa.org
The Washington CPA Winter 2024
27
Upcoming CPE A selection of WSCPA CPE events scheduled January - April are listed. To view the thousands of courses and complete details, please visit the CPE & Event Catalog at wscpa.org/cpe.
WSCPA Blue Ribbon CPE Hosted and hand-selected by the WSCPA Online CPE DATE
COURSE TITLE
CREDITS
1/16
This Year's Top Tax and Financial-Planning Ideas WEBCAST
4
1/17
The Complete Guide to Preparing Forms 706 and 709 WEBCAST
8
1/18
Rules, Regulations and Ethics for CPAs in Washington - 2023 WEBCAST
4
1/19
Prix Fixe: Keeping Up with the Latest Developments: A Comprehensive FASB Update on Key Projects WEBINAR
1
1/24
Member Exclusive: Insights and Analysis: A Comprehensive Economic Update WEBINAR
1
1/26
Prix Fixe: Beyond Borders: Tackling Cross-Border Tax Issues for a Successful Tax Season WEBINAR
1
2/2
Prix Fixe: Maximizing Tax Savings with Bonus Depreciation and Cost Segregation WEBINAR
1
2/7
Member Exclusive: From Passion to Purpose: How CPAs Can Make a Difference Through Volunteerism WEBINAR
1
2/9
Prix Fixe: Leading Remote Teams in Digital Times WEBINAR
1
3/1
Prix Fixe: Mastering Form 990 and Form 990-PF: Best Practices for Compliance and Reporting WEBINAR
1
3/5
Advanced Topics in a Single Audit WEBCAST
8
3/6
Member Exclusive: Prioritizing Self-Care: Tips to Get Through Busy Season WEBINAR
1
3/7
Comparing and Contrasting Retirement Plans for Small- and Medium-Sized Businesses WEBCAST
2
3/13
2023 Washington State CPA Ethics by Jim Rigos WEBCAST
4
3/15
What Tax Practitioners Need to Know About Medicare WEBCAST
2
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
28
The Washington CPA Winter 2024
www.wscpa.org
Register at www.wscpa.org/cpe
EDUCATION AND EVENTS
Online CPE DATE
COURSE TITLE
CREDITS
3/15
Prix Fixe: Cyber Risk is Business Risk WEBINAR
1
3/18
Individual Charitable Planning: Philanthropy for Income Tax Return Reporting WEBCAST
2
3/19
Understanding and Creating an Internal Control System WEBCAST
8
3/20
Member Exclusive: Spring into Organization: Tips and Tricks for a More Organized Workspace WEBINAR
1
3/21
Business & Industry Conference - IN-PERSON EVENT
8
3/22
Prix Fixe: Hot Topics for Charitable Giving WEBINAR
1
3/27
Governmental and Not-for-Profit Accounting and Auditing WEBCAST
4
3/29
Prix Fixe: Controller and CFO Update: Hot Topics Facing Today's Finance Professionals WEBINAR
1
4/8
Non-GAAP Financial Statement Options: Cash, Modified Cash, and Tax Basis WEBCAST
4
4/10
Governmental Auditing Update WEBCAST
4
4/16
Mastering the Basics of Inventory Accounting WEBCAST
4
4/174/18
Governmental Accounting & Auditing Conference - IN-PERSON EVENT
16
4/23
Washington Ethics and New Developments 2023 WEBCAST
4
4/24
Examining ASC 842, Leases: More Than Meets the Eye WEBCAST
4
4/24
Member Exclusive: Mentoring Today's Accounting Students WEBINAR
1
4/25
Accounting for Exchange Transactions, Contributions and Gains and Losses in an NFP WEBCAST
2
4/26
Prix Fixe: Sustainable Real Estate Construction and Operating Practices and Hurdles WEBINAR
1
4/30
The Most Critical Challenges in Not-for-Profit Accounting Today WEBCAST
4
Online CPE DATE
COURSE TITLE
1/19
What Every CPA Should Know About Fraud 2023 WEBCAST
4
1/22
Artificial Intelligence Fundamentals for CPAs 2023 WEBCAST
4
2/2
Tax Planning for Sole Proprietors and Other Business Owners 2023 WEBCAST
8
2/14
Measuring Audit Risks WEBCAST
3
2/16
What's Changing in A&A for Governmental Entities WEBCAST
4
3/6
K2's 2023 Small Business Internal Controls, Security, and Fraud Prevention and Detection WEBCAST
8
3/7
Leases: ASC Topic 842 in Depth 2023 WEBCAST
8
3/26
Auditing Standards: A Comprehensive Review 2023 WEBCAST
16
4/20
Partnership Tax Updates WEBCAST
2
www.wscpa.org
CREDITS
The Washington CPA Winter 2024
29
CLASSIFIED ADS Mergers & Sales
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! • • • • • • • • •
Seattle Pro Musica Shoreline Farmers Market Theatre Puget Sound Myrina NP Northwest Gifted Child Association Juice Box Theatre SciAccess Type 1 United Washington Wild
Find or submit an opportunity at: wscpa.org/volunteer-opportunities
Looking to Acquire Firm: I'm a Seattle-based CPA with over 14 years of quality experience at small to large/national CPA firms, providing tax services to a broad range of clients ranging from small business owners to large entities and complex HNW/UHNW individuals. I already have a small book of the business that I've been growing but looking to accelerate it through an acquisition. The acquisition can happen over a number of years if the seller is interested. Also, I am open to partnerships in the right circumstances. Contact David Ghanaie, dghanaie@rainiertaxadvisors.com or 206.240.0708. 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 4200 completed transactions. Please contact us if we can be of assistance at 425.454.3052, 509.907.9406, or www.ibainc.com. Have a client / owner ready to explore the business sale process? 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! Contact Ryan Hemmert, info@wabusinessbrokers.com or 206.703.3555.
Reach Your Target Audience Check off those New Year's Resolutions with savings from your Passport Corporate Card. Your WSCPA membership includes this free benefit (a $150 value). Access 3,000+ discounts online and in your neighborhood. Great for fitness classes, dining, travel and shopping.
Find your savings today at
wscpa.org/passport
30
The Washington CPA Winter 2024
Advertise with the WSCPA Learn more at: wscpa.org/classifieds
CPA Practice for Sale! A Service-first CPA firm is available with an exceptional reputation located in Montgomery County, Maryland, just outside of Washington D.C. The practice has a balanced mix of services. This office is mostly paperless and has excellent technology and great systems and processes – enabling remote working. The office building is in a great location for visibility and client access in an attractive community with great schools. Owner hours are just over 2,000 and cashflow -to-owner is $300,000. The annual Gross is $760,000 and the asking price is $760,000. Contact Carol Poe with Poe Group Advisors at cpoe@poegroupadvisors.com or visit poegroupadvisors.com/practice/md2007/ to learn more. Vancouver and Olympic Peninsula Firms for Sale! With over 19 years of experience, Accounting Biz Brokers specializes in the sale of accounting firms and tax practices. Selling your accounting firm is complex. Let us make it simple. For Sale! Olympic Peninsula, WA Gross $360k. Vancouver, WA Gross $572k.
WSCPA Knowledge Hub - A Free Member Resource! Discover a library of free, downloadable content right at your fingertips. Includes white papers, webinars, product guides, case studies, industry analysis and much more, provided by experts and vendors within the accounting industry. Visit hub.wscpa.org
Join a Resource Group Engage with CPAs who share your interests by participating in one of the many resource groups or 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. Topics include international tax, not-for-profit, sole practitioners, student outreach and more. Visit wscpa.org/resource-group-committees
www.wscpa.org
CLASSIFIED ADS
Are you wondering what your practice is worth? We can help! Looking to find out the value of your business in today’s market? Take advantage of our proven business valuation services. Our experienced team will analyze the last three years of your business’ financials to determine your Seller’s Discretionary Earnings (SDE) and EBITDA (earnings before interest, taxes, depreciation, and amortization). The SDE and EBITDA values, along with your business’ gross revenues, will be used to calculate a valuation range specific to your industry considering market comps and many other factors. Contact our Business Systems and Financial Analyst, Mike Proa, MAI, today at mike@privatepracticetransitions.com or call (253) 509-9224 to get started! Profitable Fresno Tax & Accounting Firm (CA 1215): Established in 2012, this Certified Public Accounting practice has established a strong, long-term presence in the greater Fresno area. Since its inception, the Practice has offered a wide range of tax and accounting services to both business and individual clients. The Practice’s service by revenue breakdown is 37% Tax Preparation and Planning, 37% Accounting & Auditing, and 26% Consulting, Forensic & Valuation. Including the Owners, the Practice has twelve (12) staff members serving its ~477 active clients. Over the past three (3) years, the Practice has averaged gross revenues
of approximately $1,978,397 (2020-2022). This Practice is poised for growth and increased revenue under new ownership. To take advantage of this exciting business opportunity, call 253.509.9224 or email info@privatepracticetransitions.com. Profitable King County Tax & Accounting Firm (WA 1212): Over the past 26+ years, this Seattle Practice has offered a wide range of tax and estate services to both business and individual clients. The Practice’s service by revenue breakdown is 45% Individual Tax Preparation and Planning, 20% Business Tax Preparation and Planning, 27% Trust & Estates Tax Preparation and Planning, 4% Reviews & Compilations, 2% Bookkeeping, and 2% Other. Including the Owners, the Practice has five (5) staff members serving its ~850 active clients. Over the past two (2) years, the Practice has averaged impressive gross revenues of approximately $1,825,000 (2021-2022). The Practice’s success is in large part due to the dedicated and seasoned staff who are highly skilled with a strong focus on customer service. This Practice is poised for growth and increased revenue under new ownership. To take advantage of this exciting business opportunity, call 253.509.9224 or, email info@privatepracticetransitions.com, with “1212 Profitable King County Tax & Accounting Practice” in the subject line.
West Coast-Based Tax & Accounting Practice (1231): This highly profitable tax Practice is a prominent leader in the tax and accounting industry on the West Coast. The Practice is full-service, providing tax preparation and planning, business advice and consulting, bookkeeping, accounting, and financial statements – everything needed to help owners plan for and grow their businesses. The Practice has earned a well-respected name "brand" with prospects, peers, and loyal clients who have placed their trust in its services. The Practice’s success can largely be attributed to its established brand, loyal client base, and dedicated and tenured staff of over 30 employees. The Practice has grown its client base each of the last few years, with over ~1,700 active and loyal clients as of July 2023. The practice employs a team approach to client service and is known for having a holistic and personable approach, which its clients appreciate. Additionally, the Practice has proven processes and procedures that result in accurate, thorough, and efficiently prepared projects and services for its clients. To learn more, call 253.509.9224 or email info@privatepracticetransitions.com, with "1231 West Coast Based Tax & Accounting Practice” in the subject line. Highly Rated Methow Valley Tax & Accounting Firm (WA 1205): Over the past 40 years, this Washington tax and accounting firm has offered tax and bookkeeping services to both business and individual clients in Winthrop and surrounding areas. As of March 2023, the Practice has approximately ~671 active clients and has seen great client retention as is evidenced by the increase in client counts year-over-year. The Practice’s service by revenue breakdown is 86% Tax Preparation & Consulting, and 14% Bookkeeping. In 2022, the Practice brought in $680,566 in gross receipts which was a 14% YoY increase! Including the Owner, the Practice has seven (7) loyal staff members. The Owner is willing to stay on part-time for up to two (2) years if desired. To take advantage of this “turnkey” business opportunity, call us at 253.509.9224 or send an email to info@privatepracticetransitions. com, with “1205 Highly Rated Methow Valley Tax & Accounting Firm” in the subject line.
Visit the WSCPA Job Board! Post your opening and be seen by some of Washington's finest CPAs and finance professionals. Learn more at: wscpa.org/job-board
www.wscpa.org
The Washington CPA Winter 2024
31
Periodicals postage paid at Bellevue WA and additional mailing offices 170 120th Ave NE Ste E101 Bellevue WA 98005
CLEAR
AREA
Business & Industry Conference March 21 | Bellevue Governmental Accounting & Auditing April 17 & 18 | Sea-Tac International Tax Conference May 8 | Bellevue Women's Leadership Summit May 16 | Newcastle WSCPA Membership Summit June 11 | Pre-Summit Event June 12 | Summit | Bellevue Bottles, Brews & Buds July 30 | Seattle Farm Tax Conference August 22 | Kennewick
Register Now! wscpa.org/spring24