The January 2023 jobs report showed U.S. unemployment dropped to 3.4 percent, a 53.5-year low, and yet employers are struggling to retain and attract top talent. Compensation and advancement are always important incentives, but today’s workers, especially millennials, want more. They want employers with socially and environmentally responsible business practices and values. Here are several ways CPA firms and organizations can gain a recruiting edge, at little or no additional cost:

Employer Actions

• Bank and invest at a Community Development Financial Institution (CDFI). While low-income communities are underserved by traditional banks, CDFIs are driven to serve these areas through home mortgages, business loans and banking services. However, their small size limits the capital available to meet loan demand. By banking and investing at CDFIs, CPA firms and their clients provide new funds for CDFIs to lend which creates jobs, reduces the racial wealth gap and raises standards of living. Account deposits are FDIC insured up to $250,000.
• Leverage long term investments for ESG. Endowments and other long-term portfolios can be invested in environmental, social and governance (ESG) funds which favor socially responsible investments. Investments made directly in stock (rather than mutual funds) give the investor the right to vote on proposals that seek to protect the environment and advance social issues. An employer’s votes show staff and the public where it stands on important issues.
• Use sustainable finance. As Bloomberg reports, green bonds are a financing source used exclusively for environmentally friendly projects, such as energy efficiency, pollution prevention, green buildings and more. Sustainability-linked loans reduce the interest rate as the borrower achieves certain environmental or social goals. CPAs can advise clients that funding growth with these vehicles reduces expenses, while demonstrating their commitment to a sustainable and socially responsible business.

Employee Financial Support

Employers can empower staff to support causes important to them by use of the following:

• Retirement plans. In Schroders’ 2022 Retirement Survey, 87 percent of respondents said they want investments aligned with their values, and 74 percent would increase their retirement plan contributions if ESG funds were offered. However, only 2.9 percent of retirement plans actually offer ESG funds, according to a 2020 New York Times article. Employers can help staff take action by adding ESG funds to their company plans and offering ESG funds in a broad range of asset classes, styles and company sizes, so employees can build a fully diversified ESG retirement portfolio.
• Payroll withholdings. Companies can enable staff to make charitable contributions directly through payroll deductions. Chron.com shows you how.
• Publicizing a matching gift program. According to Double the Donation, 78 percent of donors working for companies that match employee charitable gifts are unaware their employer provides this benefit. Only 7 percent of employees actually submit the matching gift request. Employers can increase goodwill by reminding employees their charitable gifts will be matched.

Employee Social Action

A Deloitte survey showed that 69 percent of employees want more opportunities to volunteer, but 62 percent cannot dedicate time during their workday. Providing paid time off to volunteer is a simple way for employers to show they share and support employee values.  

Company volunteer programs could include:

• Company volunteering day. Some companies send teams of volunteers to work at a nonprofit for the day. Employers can build enthusiasm for the program by allowing staff to select the nonprofit to support.
  
  
• Individual volunteering. If a company volunteer day does not fit everyone’s schedule, employers can provide time to volunteer when it is convenient for the employee. M&T Bank allows 40 hours per year for volunteering.
  
  
• Nonprofit boards. Many nonprofits lack board members with the finance, business development, communications, human resources or other skills that corporate employees possess. Encouraging staff to serve on boards enables them to create positive change.

The benefits of volunteering are numerous. Studies show that volunteering lowers stress, improves mood and nurtures relationships which can reduce heart disease, stroke and depression. A Deloitte study also showed that volunteering improves morale.

Employers benefit as volunteers develop skills in time management, leadership, communications and interpersonal relations that improve job performance and collaboration. Forbes reports that consumers want to patronize companies that are ethical, socially responsible and environmentally friendly. Thus, companies that are socially responsible can improve the world while gaining a competitive edge.

According to a CNBC article, 4.2 million Americans voluntarily left their jobs last November. Given that the price of eggs rose about 60 percent in 2022, and the annual inflation rate was about 6.5 percent for the 12 months that ended December 31, 2022 (current US inflation rates: 2000-2023, USinflationcalculator.com), this job statistic surprised me a bit. As the cost-of-living surges past the verge of ridiculous, one would think that more and more people would be inclined to sit still in their cozy positions. But, as the article explains, 61 percent of U.S. workers are also considering leaving their jobs in 2023. Even the fears of a recession aren’t stopping individuals from seeking out other opportunities.

Employee retention, therefore, is one of the biggest challenges that many organizations — including those in the accounting profession — are facing today. It's never been a secret that in the public accounting industry, there's a high turnover in staff, especially among the Big 4. Recently, even smaller firms are starting to see the trend of more and more people leaving for other opportunities. Today, more workers feel less loyal to their employers, and there is no real sense of commitment anymore. People want higher compensation, an improved work-life balance, flexible schedules, and more opportunities for career growth. Companies are starting to see employees that have been there for years quit because higher compensation opportunities or more flexible schedules are being offered. “Quiet quitting” is also becoming the new trend for many companies as well because of a lack of motivation to go above and beyond in job responsibilities.

I decided to informally survey a group of 20 employees that work in public accounting, ranging from experienced staff to new managers, to try to find out what people value on their jobs. The results of the survey showed:

• 90 percent were motivated by money, work-life balance and company culture.
• 70 percent were motivated more by job satisfaction than they were by money.
• 85 percent said that work-life balance was very important to them.
• 70 percent said that they value compensation over recognition.
• 100 percent said that growth opportunities are important to them.

So, how can companies motivate and retain staff? It starts with an organization’s tone at the top and leaders getting to know their people. Here are important issues to consider:

• Business leaders need to be asking their staff what motivates them, and what they are looking to get out of their careers. They should be investing in them and showing them that they are important. It’s essential to show your employees that you care about their success and their well-being. When employees feel appreciated and feel like they are valuable members of the team and that their work matters, they are motivated to work harder, and they perform better as a result.
• While compensation doesn't seem to be a main driver for employees, it is still a pretty important factor. Better compensation can be a valuable tool for leaders to use to leverage high performers from going elsewhere.
• Creating an open culture where employees feel like they are part of the solution helps drive success. People leave jobs for many reasons, but good leadership, and some basic concepts like investing in your people and showing them that you see their efforts can be the reason why people decide to stay.

Accounting professionals have been attempting to provide quality information and services ever since cryptoassets became a mainstream financial instrument and asset class, but this has been an ongoing struggle. Due to the lack of authoritative accounting and audit standards directly connected to blockchain and cryptoassets, accountants have been seeking to provide solutions such as proof-of-reserves, proof-of-solvency practices and other services attempting to bring some much-needed transparency and reportability to the crypto space.

With crypto still a new financial instrument, accounting practitioners need to be aware of delivery and expansion issues, such as the following:   

Information Discovery

The ease with which clients — individual and institutional alike — can now enter the crypto space can lead to extremely complicated tax and accounting requirements. There is also the very real possibility that 1) the client, 2) family members of the client or 3) individuals acting on behalf of the client have gotten exposure to crypto without any overt announcement or strategic shift. Drilling down, practitioners should be sure to ask the following questions:

• Who has access to funds or trading accounts at the client?
• What applications or accounts are connected to these accounts?
• Are records and/or documentation from trading or investing activity available for review?

Expanding the Potential Client Base

It's no secret that as younger generations enter the workplace, move into leadership positions and obtain economic clout, technological and other factors accompany them. Millennials and Gen-Z, representing the largest age cohorts since the Baby Boomers, 1) are rapidly integrating in the workforce, 2) are going to be the recipients of the largest wealth transfer in history and 3) are almost universally positive toward virtual payments and currency options. For accounting firms and virtually any other business, appealing to these potential future customers while improving convenience and options for current customers makes perfect sense. Some specific factors and questions that advisors should bring up include the following:

• What is the current payment mix for customers, and what is the cost profile of maintaining this payment structure?
• Can conversations around the possibility of payments be raised with the current customer mix?
• Would cost savings driven by crypto integration justify the expense of implementation?

Crypto Vendor Management

Crypto has had no shortage of issues, failures and bad actors, and all of these factors came to the front burner in a major way during 2022. From exchanges failing and fraudulent coin offerings to criminal activity leveraging cryptoassets, clients of all kinds are likely to ask significant questions. CPAs are well positioned to provide objective and reasonable advice in this area. Since practitioners are well versed in vetting and reviewing vendors in other areas, there are factors and considerations that can be leveraged into the crypto space as well.

• What is the track of record of the vendor in question, and is there a public listing of existing clients?
• Who is on the management team of the vendor in question, and is there public information regarding their past ventures?
• Is there a way to test how crypto vendors, for payments or otherwise, will interoperate with existing technology tools?

Cryptoassets are here to stay; that much is widely agreed upon by developers, investors and policymakers alike. Firms and practitioners must be up to date on changes in accounting and regulatory treatment to best advise both current and future clients.

Consultative selling is the best method that accounting firms can use to avoid coming off as being too salesy with existing clients. As a tool, it requires accountants to ask clients good questions, actively listen to the response, be empathetic and focus on solutions.  

It is important to follow the 80/20 rule. Listen for 80 percent of the time and provide thoughtful solutions for the remaining 20 percent. The client will tell you everything that you need to know to make a sale if you take the time to listen. 

Here are four recommendations for having successful consultative sales conversations:

1. Discuss problems, needs, and wants. Ask open-ended questions to discover hot buttons, issues, challenges, needs and wants by:
   • Letting your client talk. The longer they talk, the more insight they will provide.
   • Asking open-ended questions to obtain a longer response to questions.
   • Listening intently and repeating back information to acknowledge that you understand and, if appropriate, agree with the client.
   • Talking about the client’s problem — not how wonderful you are.
   • Being prepared. Analyze the client’s key performance indicators (KPIs), historical data, industry trends and other relevant issues before the meeting.
2. Present your solution. Once you have a solid understanding of what your client is looking for or what issue they want to resolve, present your solution(s) by:
   • Explaining how you and your organization can solve their problem or meet their needs.
   • Illustrating your points with anecdotes by telling stories about the solution you provided to a client with similar issues.
   • Focusing on the benefits they will realize by expanding the scope of the engagement. Paint a picture in the client’s mind of how it will be once the solution is in place.
   • Watching your client’s behavior as you speak. Then, ask qualifying questions in response to their body language and comments.
   • Allowing the client to ask you questions or provide feedback.
   • Asking closed-ended questions to gain agreement.
3. Overcome objections. Expect objections and be ready to address them by:
   • Repeating the objection back to the client to ensure you understand them correctly.
   • Empathizing with what they’ve said and giving a thoughtful response.
   • Offering proof that you have the solution by presenting statistics to support your claim, telling a client success story, providing a report, earning designations and awards, etc.
   • Confirming that your answer has overcome their objection by asking the client if they agree.    
4. Close the sale. The client will only buy or expand the scope of the engagement once you have presented a solution to their problem, educated them on the value they will realize and addressed all their objections. Ask yourself:
   • Does the client agree that there is value in your service?
   • Does the client understand the benefits of working with you in this area?
   • Are there objections that still need to be addressed?
   • Have you minimized the risk?
   • Are there other factors that could influence the decision to expand the scope of the engagement?

   You may have to provide several forms of proof that your solution is the best to convince the client to buy the service from you. For example, offer testimonials or references, articles from vetted sources, results of research studies and statistics on other clients' return on investment (ROI).

   If you’re not sure if the client is ready to close, ask the following questions: Would you like me to help you implement (solution)? Should we get started? Can I send you a new engagement letter?

   Selling is about helping a prospect find a solution to a problem. All you need to do is educate your client that you are the best solution provider. Approach the process as a consultant — someone genuinely interested in helping — and you will not come off as salesy. Instead, you will be considered a trusted advisor, or if you are exceptional, the client’s most valuable advisor.

The accounting profession has been plagued with staffing shortages caused by a multitude of retiring professionals, a gradual decline of new entries into the profession, the pandemic and other factors. Many firms are scrambling for qualified staff to fill vacancies and are turning to outsourcing and offshoring.

U.S. Outsourcing

Firms should be mindful of their respective state board rules, IRS rules and other standard-sending bodies’ rules regarding confidentiality if they outsource within the United States.

In most cases, a disclosure of the use of third parties providing tax and accounting services will be required. The following clause can be considered in the firm’s engagement letter:

We may, from time to time and depending on the circumstances, use certain third-party service providers and transmit information to them in serving your account. Such transmissions can include, but are not limited to, tax software providers for electronic filing, technical assistance, automated processing of tax forms, online backup services and file sharing services. We may share confidential information about you with these service providers, but we remain committed to maintaining the confidentiality and security of your information.

Offshoring

Off-shore outsourcing requires strict adherence to IRS Code Section 7216. Tax preparers bound by 7216 should become familiar with the civil penalties outlined in code section 6713(a) and the criminal penalties outlined in code section 7216(a). The disclosure must:

• Outline the purpose of the disclosure
• Indicate the duration of the disclosure
• Be signed
• Be a separate written document

Civil penalties from non-compliance are $250 per disclosure and cannot exceed $10,000 in any one year. Criminal penalties are one year of imprisonment and/or $1,000.

Disclosure Guidance

There is often confusion in the profession regarding when the disclosure is required, whether it has to be a standalone document and whether it can be inserted in the engagement letter. IRS  Revenue Procedure 2008-35 provides these answers and guidance with respect to other areas of concern.

Essentially, the 7216 disclosure is required for individual tax filings. The disclosure must be in a standalone document. While the disclosure can be attached to the firm’s engagement letter, it must be a standalone document. See the Section 7216 Information Center on the IRS website for additional guidance to ensure adherence to the rules governing off-shore tax preparation.

Talent is the foundation and lifeblood of an organization. It is the most essential component for current and future sustainable success and growth. Firms that are successful at attracting talent have figured out the “secret sauce” in their recruiting process. But how do you differentiate yourself during the recruiting process?

Candidate Experience

It begins and ends with the candidate experience. This is all-encompassing and offers the candidate visibility into what he/she should expect if they were to join. This should consist of timely communication and engagement throughout the process, along with the opportunity to meet multiple employees at different levels (both tenured and newer employees) who are willing to share their experiences and offer their insights into your culture and organizational structure. Additionally, a streamlined interview process that minimizes gaps between interviews, is accommodating and yields a timely decision-making process is also key. You have one opportunity to get the candidate experience right. A favorable first impression is often the difference between the candidate selecting your firm or your competitor.    

Understanding what candidates desire in a firm is equally important. Most candidates are motivated by several factors; how they prioritize them may differ. Candidates tend to concentrate on the following:

• Inclusive culture
• Compensation/benefits
• Clear path for ongoing career advancement
• Flexibility
• Work-life balance
• Sense of belonging
• Feeling valued
• Challenging work in a preferred discipline
• Working in a growing, yet stable organization

Organizations must understand what the candidate truly values in a job. The interview process presents an opportunity for both the candidate and the firm to perform due diligence on each other. It is a fact-finding mission that should be an open dialogue, not a Q&A.  Transparency by both parties significantly increases the likelihood of a successful hire.

Retention

The candidate decides to join your firm, so the hard work is done, right? No. The real challenge lies in retaining your talent. How do the best firms retain employees? They deliver on what they advertised and promised during the interview process and more. If they fail to deliver on their promises, employees WILL LEAVE as trust is broken and it fractures any loyalty to the organization.

Accounting firms with the lowest turnover demonstrate all or most of the following characteristics:

• They are focused on successful employee integration. Performing check-ins within the first few months of the employee starting will help to ensure the experience has been favorable.
• Leadership is invested in employees’ success and ongoing development (continued education/training and career mentorship).
• Leadership shares a consistent and clear communication strategy around the firm’s vision.
• Rewards and recognition are a key ingredient for retention.
• There is a correlation between compensation, promotion opportunities and value derived. No employee wants to feel that the firm is squeezing the last bead of sweat out of them to improve margins.
• They provide flexibility and a reasonable work-life balance, which lends itself to positive mental health. Employees value their life outside the office.
• They maintain the optimal number of resources to ensure they are not over-burdening employees.
• They hire the RIGHT talent (high integrity and empathetic people) who align with the firm’s culture; diversity, equity and inclusion (DEI) strategy; and overall core values. Employees notice the firm’s commitment to hiring talent.
• They offer a pleasant environment. Employees want to work with people they like, and it helps with retention.

Recruiting and retention are woven together in a tapestry, and the most successful firms excel at both.    

It is said that accounting firms have commoditized their services. Every firm can do “similar” compliance-type reports — tax returns and bank-required audits, reviews and compilations. But the difference, the unique competitive advantage, is YOU. You are selling yourself — and for you to be granted the ability to provide that commodity or service package to this new prospect depends entirely upon your ability to read and connect with them. And communication is the key to doing just that.

Do you know your style? There are many types of communication tools like Myers-Briggs, Strengths Finder, ELI or DISC, which stands for Dominant, Intuitive, Steady and Conscientious. DISC is one of the leading programs to teach us about our styles of communication and how to recognize the styles of others. When you can recognize how others interpret communication, you can monitor your own behaviors, flex your tones, deliver your words more appropriately and come to decision-making with a better understanding.

Here is an abridged version of how to use DISC with your clients:

• Dominant type.“I before why?” This type is all about how something suits the individual. Dominants are driven by ego. They talk and walk fast and look good doing it. They are big-idea and bottom-line driven. They need to hear answers fast and delivered with confidence. They do not appreciate small talk; they prefer to get down to business. They are loud and proud, to the point, and can be abrupt and direct. They are leader oriented and typically in the roles of CEO or operations. You would recognize this type by how their office looks; a dominant prefers an “ego wall” (filled with accolades, accomplishments and “selfies”). Their biggest fear is being taken advantage of. The best way to sell to this type is to let them explain what they want first. Next, ask them to talk about how they envision the solution. Finally, quickly provide them with what they ask for and congratulate them on the win.
• The Intuitive or team leader. “We before me.” This type wants to know how your solution can help the more significant “us.” They might take a while to stop talking before they are interested in what you are pushing. They generally enjoy getting to know you, and they like to talk about their team a lot. Often dubbed the “chatty Cathy” in the office, you will know them right away by their pictures of family and the way they show their love for people. Their biggest fear is not being heard or included.When you are ready to present to this type, be sure to become part of their team. Aim to be seen as collaborative, not unilateral. Provide them with details on how your solution makes the whole group more efficient. And don’t forget to get to know them first. The biggest sales tip when working with this type is to connect personally with them first. They rarely do business with someone they wouldn’t go to dinner with or bring home to their family.
• The Steady Ready Eddies. These quiet and intelligent types are hard to read. They are most afraid of the loss of security. They want to hear words like guarantee, warranty, timeline, assurance and commitment. They do not like change at all but will change with consistent, constant reliability. They are your true supporter on a team and are notably dependable. You can identify them prominently by their clothes — mainly the firm logo — and their repetitive, systematic approach to completing tasks. Accountants are saturated with steadies; it’s a great profession to align with. It’s important to share the details of your proposal step by step, and then give them time to review and think about your proposition. If they haven’t responded to you, don’t take it personally. They aren’t ignoring you; they are thinking.Give the steady time to ask questions and respond, so schedule a follow-up meeting before leaving the initial discussion. Once they agree to your services, you can bet you’ve got a client for life.
• The Conscientious. Just the facts, Jack! Unless you come with charts, references, guides, etc., you don’t stand a chance of winning this type over. They may not even give you a chance unless they’ve been referred to you by an old friend or a family member. This consummate introvert has difficulty balancing the heart and the brain; therefore, decision-making is tricky since they never want to be wrong. Often dubbed the perfectionist, they are slow to complete tasks, especially if it’s new, because they want to be sure it’s accurate. Fear of being wrong has this type gripped. This buyer, if engaged, already knows about you, your product and your company, so prepare for a quiet meeting of the minds. To be most effective with them, be respectful of their attention to detail and facts. Don’t share your emotions; stick to research and proof, and make sure you have back up. Signing a deal with this type may take several rounds, but if you can earn their trust, they will make you feel like the smartest salesperson alive.

In a perfect world, the you you’re selling is your authentic self. But to be great at selling your services, you have to be better than just yourself — you have to change your behavior and adjust to the needs of your prospect. Half the battle is being heard. 

CPA Evolution encompasses a new model for licensure and the CPA Exam that will subsequently necessitate some significant changes to our accounting programs. As accounting educators, we’ve been considering CPA Evolution for some time. The CPA Exam is due for an overhaul, and we are enthusiastic about the changes, but many questions remain about how best to incorporate these new topics into our programs. Curriculum changes aren’t always easy to achieve. And while we recognize the importance of the new material, we also grapple with the challenge of where to include the new material in a curriculum that is already jam-packed. 

Accounting educators have been considering CPA Evolution for some time, but what about accounting students? Are they thinking about the new licensure model at all? Do they welcome the changes? Are they worried? To find the answers, I polled a few accounting majors at Rutgers Business School. Most of the students who responded to my inquiry were juniors and seniors — all of whom are likely to be affected by the new CPA Exam. 

Here’s what I found out:

• Students were aware of the new Exam but not focused on it yet — their familiarity with the new Exam was anywhere from “somewhat familiar” to “not so familiar.” They are likely waiting on more guidance from instructors or their chosen review course provider.
• Students had a positive opinion about CPA Evolution and agreed the changes were necessary. Students appreciated that the new Exam will be more modern and adapted to the ever-changing profession. They liked the inclusion of more data- and technology-related topics. They also liked that they could specialize and become more skilled in an area that interests them.
• At the same time, they also worried about the data and technology topics on the Exam. Despite students overwhelmingly listing technology as well as analytical and problem-solving skills as topics they welcomed, they were concerned their current accounting classes would not adequately prepare them for these new topics. This is a valid concern and perhaps a wakeup call for accounting educators. We also wonder what data and technology topics are most important since firms and companies vary in practice with what they use. In addition, some accounting faculty don’t feel comfortable teaching the data and technology subjects because their background is in accounting.
• The students were concerned about the requirement to choose a specialty in the new licensure model. While they did appreciate the opportunity to become more skilled in a specific area of interest, students worried about picking the wrong section. What if their chosen specialty eventually was not a good fit for them? Deciding upon an area of specialty is difficult when you’ve not yet had the chance to gain much work experience. Students also wondered if firms might favor one section over another — would they favor a job candidate over another due to their selected specialty? They also wondered about choosing between a section that might be considered easier versus choosing a section that has more practical application.
• Students showed concern about the availability of practice material for the new Exam. After all, who wants to be the first group to try out a new exam?

In general, students did seem very optimistic about the new licensure model as well as the accounting profession as a whole. They viewed accounting as a rewarding career with security and opportunities for growth.

The new CPA Exam will test candidates on knowledge required for a profession that has changed and will continue to evolve for years to come. A revised curriculum at the college level, based on the CPA Evolution initiative, will equip students with the skills expected by today’s accounting profession. While we aren’t 100-percent sure yet what that revised curriculum will look like, we know we are ready to meet the challenge — both accounting educators and students alike.

Let’s say that a New Jersey taxpayer is self-employed, with a net taxable income reported on Schedule C of Form 1040 of $225,000. This person was referred to you because you are a CPA who provides value-added tax planning opportunities, and the current accountant only provides compliance work. Eager to impress and provide tax savings, you suggest that the taxpayer makes a New Jersey Business Alternative Income Tax (BAIT) election.

This seems like a no brainer at first, because the BAIT was put in place by New Jersey to help those taxpayers impacted by the federal $10,000 state and local tax (SALT) deduction limitation. However, before adopting BAIT, an analysis should be provided so the taxpayer can make an informed decision.

By the Numbers

In this example, by reviewing the 2021 tax return, the federal tax rate was 27 percent and the income is expected to be same as last year — or “SALY” for the accounting nerds. Their $225,000 income multiplied by the New Jersey tax rate of 5.68 percent and by the federal tax rate of 27 percent provides a tax savings of $3,450.

The taxpayer is happy, but is that really the savings to the client?

As a CPA, include the following additional costs for year one of this tax strategy:

• Applying for a federal Employer Identification Number (EIN) and forming a taxpayer and spouse LLC in New Jersey: $750
• NJ LLC initial filing fee: $125
• Fee for making the BAIT election: $250
• Preparation fee for the LLC and BAIT tax returns: $1,000

If the taxpayers chose to engage an attorney to draft an operating agreement, this would represent an additional fee. In this case, since the members are married, they decided to pass on an agreement.

This leads to estimated tax savings after additional costs in year one of $1,325.

In year two and going forward, estimated tax savings would be $2,450.

Presenting this sort of breakdown to a client provides a more accurate description of the potential net savings when considering the BAIT election. Based on the facts and circumstances, it could make sense to elect S corporation status and then include the fee for adding the taxpayer to payroll. This includes the filing of federal and state quarterly payroll reports, year-end reports and obtaining workers’ compensation insurance, all of which needs to be factored into the net savings to the taxpayer. If the decision to elect S corporation status is made after the due date (75 days from the beginning of the year), there is relief available at both the federal and New Jersey levels. Then, subtract $100 from the savings analysis for the retroactive, late New Jersey S-election.

Taxpayers who already have an existing partnership or S corporation do not need this analysis since most of these costs either do not apply to them or have been already accounted for.

BAIT Rules Recap

A single-member LLC and a sole proprietorship may not elect to pay the BAIT, as only a pass-through entity, such as an S corporation or a multi-member partnership, are permitted to do so.

As a workaround to the $10,000 SALT deduction cap for individuals that included in the Tax Cuts and Jobs Act (TCJA), many states, including New Jersey, enacted pass-through entity (PTE) taxes as an elective tax. The IRS issued Notice 2020-75, which clarified that partnerships and S corporations may deduct their SALT payments at the federal entity level when computing taxable income or loss.

There are some other considerations to keep in mind: 

• New Jersey requires the BAIT election to be made annually. If the election is made, but later determined that the election should be revoked, file the revocation and claim for refund form, and the entity will receive any estimated tax payments made.
• Quarterly estimated tax payments are needed. Otherwise, underpayment penalties can be assessed.
• BAIT payments reduce the Sec. 199A qualified business income deduction as well as the amount that can be contributed to a SEP-IRA and other retirement plan options. Consider a solo 401(k) over the SEP-IRA since New Jersey permits a deduction for the 401(k) but not the SEP-IRA.

Ultimately, the tax savings are the most important factor when deciding whether electing BAIT makes sense, but they are not the only factor, as there are other costs. The higher the taxable income, the easier this decision becomes. What is the income amount needed? As with determining the reasonable compensation for an S corporation owner, it depends. The CPA plays a vital role in answering those questions.

Finding your voice is essential for professional success. Whether in a meeting or giving a presentation, you will earn the respect of your organization’s leadership and your peers if you can clearly articulate your points. To find your voice, try listening to others with strong voices and see how they communicate. You may notice that they have similar communication styles and techniques. Here are some tips to find your voice:  

• Develop a strong tone. When delivering a presentation, a clear voice is essential to communicate your message. The tone of your voice reflects your attitude, so it's vital to learn how to control it to sound confident. Practicing this skill is key and can help you overcome common communication barriers. When you’re nervous or excited, the vocal cords tend to shorten and tighten, making it challenging to produce an engaging, energetic and interesting speech.
• Use volume to emphasize points. Using volume to emphasize the most important parts of your speech is necessary to ensure your audience can hear you. Avoid a monotone voice and try to vary the volume of your words. Speaking at a constant volume is tedious and can put your audience to sleep.
• Avoid pitching your voice "up" at the end of sentences. Doing so makes your sentences sound as if you are asking a question. This can be distracting and disorienting. It makes you appear uncertain and like you seek approval, which undermines your credibility. Instead, it is best to keep your pitch even and your sentences interesting.
• Avoid shouting. Raising your voice is rude and may backfire. You should instead speak clearly and distinctly. Try to face and look directly at the person you are talking to. Another good tip is to use appropriate gestures to make your point.
• Be aware of body language. Confident people often have a relaxed and expansive physical presence. This is especially important when presenting or giving a speech because it helps people respect you and pay attention to what you are saying. Developing good body language is a great way to boost your self-esteem. Remember, your posture is important when you want to project authority. Letting your shoulders slump or slouch will give the impression of fatigue or low self-esteem.
• Avoid Using Filler Words. People use filler words (“um,” “like” or “you know”) when they are nervous. Try to avoid saying these words. Instead, take a silent pause to collect your thoughts. Filler words are distractive and diminish your credibility.

One of the most impressive people I have worked with mastered communications skills early in her career. She could captivate the room and clearly articulate her point of view. Although she was in her early 20s and had no experience, leadership listened to what she had to say because she was confident. She did her homework, knew what she was talking about and believed what she was saying. Even though she had just graduated from college at the time, the managing partner gave her opportunities that the others in her cohort could only dream about. Many of you know this woman. She is Sarah Krom, CPA, MST, managing partner at SKC & Co. CPAs, L.L.C., and a past NJCPA president. Sarah is a shining example of someone who found her voice which helped her achieve much professional success.

Reverse mentoring, where a junior employee mentors a senior employee, is a strategic method that helps employees feel more engaged with their organization and its values. It is a powerful tool for bridging the generational gap and building solid professional bonds within an organization. It can also help break down stereotypes in the workplace and increase diversity, equity and inclusion within the firm. For example, it can help educate senior leaders about racial, gender and discrimination issues, which can improve the upward mobility of women and minorities in the workplace.

Challenges and Opportunities

In theory, reverse mentoring is an excellent way for an executive to gain knowledge and skills from someone less experienced. However, there are challenges that both the mentor and mentee must overcome to make the arrangement successful. The first challenge is that the participants must share a high level of respect for one another. Another challenge is that the more-senior employees must be willing to accept feedback from their junior counterpart.

Reverse mentoring programs can also fail if the senior executive does not prioritize the relationship. Ideally, a junior staff person should lead the program, select new cohorts and train the new mentors. This training will prepare mentors for successful experiences and help them share challenges.

Reverse mentoring is an excellent alternative to conventional mentoring. However, it can be a lengthy process, may require some effort to implement, and might not be suitable for everyone. For instance, a newer team member may not feel confident sharing their opinions with an experienced colleague. Also, more-established colleagues might not want to spend time participating in such a way with newcomers.

In addition to the apparent benefit of guiding a new employee, reverse mentoring provides both the mentor and mentee with an opportunity to share their expertise. For example, experienced professionals can discuss what they have learned from being in the trenches. At the same time, novice team members can share new approaches to addressing situations with artificial intelligence and other innovative technology.    

Another benefit of reverse mentoring is that it builds stronger relationships within the workplace. It is impossible to fully understand employees' perspectives and experiences without listening to them. Reverse mentoring helps more-seasoned employees refine their leadership skills by learning from newer employees.

Empowering Employees

Reverse mentoring is a great way to develop future leaders within a firm. By pairing more senior employees with junior ones, firms can accelerate learning and boost engagement. For example, Turning the Gender Diversity Dial, a 2017 research study by Moving Ahead in collaboration with and sponsored by Deloitte, found that 87 percent of mentors and mentees said their relationship had increased their confidence and empowered them. Furthermore, 82 percent of participants believed mentoring relationships help foster meaningful connections between mentors and mentees across departments and the organization, and 84 percent reported that mentoring relationships provide two-way inspiration for mentors and mentees. The concept also has the added benefit of giving senior leaders new perspectives on emerging trends. 

A reverse mentoring program allows companies to transfer knowledge and technical skills to junior employees and familiarize their senior employees with a different mindset. Those earlier in their career can to more likely to be receptive to a new idea or offer suggestions to make processes more efficient. This type of mentoring is helpful in learning about the latest tools and applications.

Reverse mentoring can foster lifelong learning. In today's fast-paced world, employees of all levels must keep their skills and knowledge up to date.

Disclaimer: This article is for informational purposes only and doesn’t constitute professional advice.

For CPAs who face the ordeal of losing against time, here is something for you — a quick list of effective time management tactics. Remember, if you fail to govern the clock, you’ll get governed by it - Golda Meir, former Prime Minister of Israel

Has it ever happened to you? You’re making your way through a big project for what seems like minutes, only to realize that it’s already been five hours? Or you’ve been running around all day, shuffling through responsibilities, only to realize that you’ve barely made it through your to-do list? Both are a result of poor time management.

CPAs have numerous duties: updating accounts, analyzing financial reports, managing debts and more. With all of these responsibilities, losing against time is only natural. But there are ways to tackle the issue:

• Track your time. If you bill clients by the hour, time tracking will help you keep a verifiable record of the time you work on their accounts. Even if you’re not billing them by the hour, tracking your time will help you identify your problem areas and create a plan to eliminate or reduce any shortcomings.
• Plan your schedule around your peak hours. Another benefit of tracking your time is that it helps you identify your peak performance hours. There likely are certain times when you’re more productive than others. I had a friend, a CPA (he was also my client) who, in the morning, couldn’t make heads or tails of his duties, but as the afternoon came, he was at his analytic and problem-solving best. You probably also have specific productive hours, and whatever they may be, try to plan your schedule around those times.
• Focus on one task at a time. According to a 2015 joint multi-tasking paper with authors from the Utrecht University, University College London and Lingnan University, IQ scores drop when people try to focus on more than one thing during cognitive tasks. Some of the participants who multitasked had a 15-point drop in IQ, leaving them with the average IQ of an 8-year-old. Imagine an 8-year-old filing taxes — horrifying, isn’t it? So, to avoid losing your IQ, do the critical, complex, urgent and highest-value action items first, and save the easier ones for later.
• Group your minor tasks and save them for later. Sending and replying to emails, filing documents and making phone calls are essential to achieve more significant tasks. However, you’ll fail to achieve the end goal if you spend most of your time and brainpower on minor tasks. So, to avoid getting sidetracked, you can group these tasks and save them for the time when you don’t feel particularly productive.
• Get organized. It may have happened to you a couple of times: you think you had a specific engagement letter saved on your computer, but you forgot in which folder, or you thought you had a client’s contact information but don’t know where it is now. Such circumstances can cause you to lose a significant portion of your time at work. You can start small — take some time at the end of each day to ensure everything is in place — and gradually build up your organizing skills.
• Delegate tasks. Don’t try to do everything. If you’re in a senior position, only handle tasks that demand your skills and expertise. Assign the rest. If you’re a one-person accounting office, you can hire a virtual assistant or a temp to help you during the busy tax season.
• Take a few breaks. You might get the urge to power through your responsibilities in a single sitting. But, experts opine that taking breaks between work has several benefits like improved memory, a boost in energy, less stress and increased productivity.

Time management is one of the fundamental skills that every professional needs to master. Those who do enjoy a significant advantage over others.

Over the past few years, many stakeholders have been asking questions to companies on how they are addressing environmental, social and governance (ESG) risks and, more specifically, climate-related risks. This has led to increased demand from investors for disclosure transparency. For example, some stakeholders would say that being able to understand how a beverage company is managing the risk of efficiently having access to the increased amount of water needed to support potential growth should be addressed just as financial metrics are. However, the demand for transparent disclosures should not be viewed as a negative or just a form of compliance but as an opportunity for companies to take credit for their innovative and disruptive efforts. 

SEC’s Proposal on Climate Impact

The word “sustainability” is frequently used interchangeably with ESG. We've seen the terminology evolve over many years — corporate citizenship, corporate responsibility, philanthropy and sustainability, to name a few. At this point, many in the capital markets have organized around the term ESG to understand and evaluate business impacts and dependencies on the environment and society.

Although ESG relates to a broad range of environmental, social and governance risks, the driving interest right now is on the E, more specifically climate-related impacts. Fitting under the umbrella of ESG, climate addresses how companies manage both their physical risk, such as a higher rate of extreme storms and intensified weather conditions, as well as their transition risk, such as policies and regulations related to greenhouse gas emissions.

With the increasing attention by many stakeholders and, most notably, investors, regulators such as the U.S. Securities and Exchange Commission (SEC) have begun focusing on climate-related disclosures. On March 21, 2022, the SEC issued a proposed rule that would standardize climate-related disclosures provided by public companies and serve as a driver for organizations to enhance their sustainability practices. The proposed climate rule would use a phase-in approach that would require public companies to include “inside the financial statements” disclosures related to their material climate-related financial impacts, as well as an “outside the financial statements” disclosure where companies would disclose their greenhouse gas emissions, climate governance, climate risks and the progress toward their goals. Although the current proposal only impacts public companies, private companies may also need to understand the ESG needs of their major customers and investors.

Where Can Accountants Start?

Because of how new and rapidly changing the ESG regulatory environment is, it has left most companies and accountants to ask themselves, “where can I start?” Through my experience researching the ESG landscape, knowing where to start can be overwhelming. Here are five questions I believe can help you figure that out:

1. Does the company have appropriate oversight responsibility for climate-related or other ESG risks and opportunities?
2. Does the company know their stakeholders and the material issues they are interested in?
3. What is the company doing to operationalize their ESG strategy and to achieve any climate-related goals?
4. Does the company have a framework of processes and controls to support complete, accurate and timely measurement of ESG-related data?
5. Does the company have the appropriate transparent disclosures around the material ESG topics?

Considering these factors can provide a starting point to understand how mature a company is on their ESG reporting journey and where you may want to focus. 

How ESG Reporting Can Add Value to a Company

By knowing your company’s stakeholders, understanding material issues and developing processes to track progress, climate-related datapoints can be leveraged to identify cost-effective ways to improve performance. The process of compiling and assessing ESG-related data, specifically related to climate impacts, can help companies discover risks that may not be captured by conventional financial analysis. It can also help companies discover avoidable costs. This process can provide the opportunity for leaders to drive risk mitigation, enhance resilience, foster innovation, increase employee engagement and, perhaps more importantly, become more operationally efficient. 

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

As used in this document, “Deloitte” means Deloitte & Touche LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting.

As one of the nine Stockton University students who attended the 2022 NJCPA Convention and Expo in June, several highlights come to mind: the Emerging Leaders lunch, the cybersecurity presentation, data analytics discussions and the session on Crafting Your Accounting Innovation Strategy. Many of us gained insight from professionals that has helped us gear towards innovative ways of practicing accounting.

Here are some takeaways from some of my fellow Stockton students:

• Nicole Spera really enjoyed the Emerging Leaders lunch where she was able to meet and network with new people in a more casual environment.
• Katia Morales said that it was a wonderful privilege that she was able to go to an NJCPA Convention like this.
• Anh Phan felt that there are so many opportunities geared toward the accounting industry. She also said that, with so many changes in the recent decades, technologies have been integrated as a part of the workforce especially with artificial intelligence (AI) being the main topic.

Overall, most of the presentations were very informative and valuable for us as future CPAs. I would like to thank NJCPA member Daniel Barbera, CPA, MBA, CGMA, CFO of Lydia Security Monitoring, for sponsoring the students through the Stockton University Foundation and Professor Barry Palatnik, CPA, MBA, associate professor of accounting at Stockton, for inviting us to the Convention. This was a wonderful experience and a great privilege for the accounting students from Stockton University.

You’ve just had a great final interview. You like the company as much as they like you. HR called and said to check your inbox, and there you find “The Offer.” The offer letter is complete with information such as your start date, where and who you will be reporting to, your official title, information on benefits and, of course, the presentation of salary. Unfortunately, the offered salary underwhelms you. You feel melancholy. You begin to question if they did like you as much you liked them, and you freeze. The process that occurs next likely sets the tone for your “incoming behavior” and establishes boundaries, expectations and professionalism.  

Here is the perspective from the other side. HR is responsible for hiring people like you. Day in and day out, they are working with salary guides, hiring budgets and, ultimately, the authority to go up to a maximum per job opening. HR is working the numbers the moment they lay eyes on your resume. Some are so good that they can value your experience before making it to the pre-screening video chat. Keep in mind that the job of HR personnel is to stay under budget on all hires, which ultimately makes them excel at their role, so they have already developed a skill set that starts with the lowest possible offering in hopes that you will simply accept. 

But now you know better. So how do you prepare in advance? Here are three ways to make sure you don’t lose sight of your value: 

1. Set your minimum. Jobs usually have a range, and depending on the geographic location, number of employees and company revenue, this number is likely set. The only time it fluctuates is if a candidate is either missing some essential skills and the employer is desperate to hire or if the candidate is overqualified or brings a unique background to the company (a bonus candidate). Before the interview, do your homework on what the position pays by reviewing similar jobs in the market, checking salary databases or even asking your peers. Ask the interviewer how many candidates are being interviewed. or why they chose your resume. Even ask them to share the range for the position.  
2. Tell them what you want and more! Most candidates are given this cookie-cutter question: “What is your salary requirement?” This is a perfect moment for you to announce your minimum… and add 10 percent. If you are working with a recruiter, your best bet is to defer to that recruiter and let them handle it. If not, and you know that you are the right candidate, feel confident with this number. It gives you immediate leverage. Once you announce your requirement, it is up to HR to negotiate with you instead of vice versa. They may say that your number is within range. If so, bravo! You’ve just given yourself a nice 10-percent increase. If they say, I’m sorry, we are looking to pay up to “X,” then you at least have the ability to adjust down to your own set minimum. If the range is below your set minimum, thank them for the interview and continue to look for opportunities. In other words, know your worth. 
3. Don’t be afraid to decline. If a salary offer is given to you without prior discussion, you can choose to fight or flee. “Fighting” would look a lot like a dance between two professionals. You may want to consider the following responses:

• “Thank you kindly for the offer of $80,000. However, with my years of experience, my last role at (insert previous company here), I cannot accept this offer unless it is re-presented at a base salary of $85,000. Would you kindly reconsider and get back to me?”
• “I appreciate the offer, and I would love to accept; however, I was expecting this role to pay between $85,000 and $95,000 per year. As such, is there any room in the budget to increase the base pay?”
• “I am excited to begin working at (company name). However, I am concerned that the compensation presented will not allow me to truly engage in the workplace experience. Is there any wiggle room in the offer? Are there any additional opportunities for compensation enhancement within this role?” 

The truth is, if you don’t ask, you will never know.  

Many negotiations take place before the start date. These conversations are expected from a majority of new hires. While I would love to say that there is an equal ratio of men to women in terms of negotiations; unfortunately, this is not the case. Considerably fewer women negotiate their salary before taking a position; this has been expressed frequently as an underlying issue in pay equity. Negotiating your salary from the onset of a new relationship exemplifies a level of business acumen and confidence. In a worst-case scenario, you find out that you might not be suitable for the company, and in a best-case scenario, you have scored a great job and just stood up for yourself in a way that can help shape your financial future positively.  

The accounting industry has experienced a significant increase in demand over the last five years and has even more openings amid the pandemic. But with so many accounting graduates competing for the same jobs, how do you differentiate yourself to effectively get an offer prior to graduation?

Here are five tips to help:

1. Strategize and be adaptable. Job searching can be a laborious process. Strategy and adaptability can give you an edge. This process should start in your sophomore year in college. The AICPA 2019 Trends Analysis on supply of accounting graduates and the demand for public accounting recruits noted that between 2012 and 2018, on average, 80,000 students graduated yearly with an accounting degree. It also noted that, on average, 38,000 graduates were hired by accounting firms. With this hiring rate of only 50 percent of yearly graduates by accounting firms, what separates you from everyone else? Know your strengths and weaknesses. Familiarize yourself with typical candidate profiles. You'll gain a better understanding of what the accounting industry is looking for.
2. Know the size of the company you would like to work for. One of the first questions you should ask yourself is, who do I want to work for? Choices can include following:
• The Big Four (EY, Deloitte, KPMG, and PWC)
• Large, regional firms
• Midsize firms
• Small firms and sole proprietorships
• Private companies
If you decide on a Big Four, large or midsize firm, identify their candidate profile. In general, most accounting recruiters in these firms consider a good candidate as one with:
• A strong GPA
• An internship or work experience
• Some volunteering
• Progress made toward completing the CPA Exam
It helps to do extensive research on companies and establish which corporate culture fits you best. But do know that once hired, you may work long hours. If you find that's not appealing, the last thing you want to do is to end up working for a company that does not suit you. There are many benefits to becoming an accountant, and being miserable certainly is not one of them.
3. Join a professional association. After creating your plan, equip yourself with the tools necessary to succeed. For example, joining a professional organization such as the NJCPA or AICPA is the first step. If you know accounting is what you love, get involved with the NJCPA or any other professional association. I personally reaped the benefits of attending events like the NJCPA’s Career Night where you can find internships and full-time entry-level positions. I started my career in public accounting because I attended this event. I was able to connect with prospective employers and schedule interviews. Other accounting graduates have had the same success.
4. Attend career fairs and reach out to your school's alumni network. Most universities host career fairs that can help you secure a job. You can also identify alumni who are currently working within the accounting profession. For example, my alma mater, Ramapo College, holds a roundtable every semester for students and alumni from different fields to meet, connect and network.
   
   The career center, available at each university, can help you prepare your resume, cover letter, find an internship and obtain an entry-level position. I found both of my internships and interviewed with several accounting firms during my senior year, utilizing my school’s career center.
   
   If, after all these steps, you still have difficulty securing a job, apply online through websites like Indeed, Monster and LinkedIn or directly through the respective companies’ website. Set goals for the number of applications that you want to send out daily or weekly. Five or 10 applications a week is standard.
5. Make use of LinkedIn.  It has become a very important job search tool. If you do not have a LinkedIn profile, I strongly urge you to create one. Recruiters use the website to locate prospective candidates. Keep your profile and resume current and your profile picture professional. Remember that your resume and profile is your first introduction/impression to prospective employers. Make sure it represents you well.
   
   Don't underestimate the importance of social media. When used effectively, it has the potential to open doors. Many recruiters screen candidates by looking at their social media feeds. It is always imperative to demonstrate professionalism on these sites. One misstep could cost you a potential job offer.

The mindset that you have going through a situation often determines the outcome. Stay positive and treat each interview as a new opportunity, not a continuation of rejection. Even if you had 10 unsuccessful interviews, treat the eleventh as a new opportunity. Even if you do not get the job, remember that you are still getting great experience from the interview process. Like riding a bicycle, the more you ride the better you become. A job search is a marathon, not a sprint. Avoid unnecessary comparison with your peers while going trough the process. I am a firm believer that everyone has his own destiny. Run your race. Everything will work out the way it is supposed to.

Many students don’t give significant thought to the CPA Exam or licensure until later in their college careers. Perhaps the CPA license becomes a blip on their radar during senior year. After all, most candidates can’t sit for the Exam until post-graduation. However, giving thought to the process in the early stages of education is crucial. A basic awareness of the requirements for the CPA Exam and licensure in the sophomore or junior year (as opposed to a first exposure in the senior year) can make a meaningful difference for students. 

Planning is key for several reasons. As educators and employers, we can encourage our future CPAs to begin this journey as early as possible. Here are some general guidelines for students to follow:

• Plan for specific state requirements. As an educator in New Jersey, I see many students graduate and subsequently begin careers in New Jersey. However, quite a few graduates will also find opportunities in New York, along with a desire to obtain a CPA license there. Why does that matter? Some candidates aren’t initially aware that requirements to sit for the Exam and obtain a license vary by state. New Jersey and New York are prime examples with their differences in education requirements. New Jersey requires 24 accounting credits to sit for the Exam, as well as for licensure. New York, on the other hand, only requires a handful of accounting courses to sit for the Exam itself — but requires 33 accounting credits to eventually become licensed.For students who intend to earn a license in New York, awareness of those necessary 33 accounting credits is essential. Realizing in your sophomore or junior year that an extra accounting elective is necessary is somewhat trivial. However, coming to that same realization in the second half of your senior year is inconvenient, to say the least. It’s not an insurmountable obstacle, but the situation itself is avoidable. Other states (such as Illinois and California) require coursework in ethics — again, not a problem if someone has planned for that requirement all along. The takeaway: for a smoother process, students must gather information on the state they want to work in as early as possible.
• Do not feel intimidated by the CPA Exam, especially in light of the upcoming changes under the CPA Evolution initiative. As an educator, I am excited about the new model for licensure, but I’ll be the first to admit that I’m a bit intimidated myself! Early introduction to the Exam for future applicants can make all the difference.
• Talk about the Exam with professors and employers.In my Advanced Accounting class, I incorporate practice CPA Exam questions into every class. We discuss approach and strategy. I don’t overdo it — it’s an Advanced Accounting class, not a review course. But the exposure, the discussion, the increasing familiarity of the questions — over time, that experience will provide future candidates with a certain level of comfort and confidence surrounding the Exam. They can do it. As educators and employers, we provide a space where candidates can learn about this next big challenge in their lives.
• Take advantage of available resources. One great example is the free NJCPA student membership. Students should know what a valuable resource the NJCPA can be for them. The NJCPA website for potential CPAs is fantastic. The site provides very clear information on the Exam, licensure and so much more. For those considering licensure in a state other than New Jersey, similar state society and state board pages are available with these resources.

My overall goal is for our students to have increased success on the CPA Exam — that they will head into that period of intense study feeling confident and well-prepared, knowing the CPA Exam is something they can tackle. Success on the Exam sets students up for a flourishing career as a licensed CPA. We can jump start the process by providing the next generation of CPAs with the proper tools — these helpful bits of information that will pave the way for much success.

As a college student, there is often confusion on what working in the “real world” is like. Let me be the first to tell you that working in accounting is nothing like taking accounting classes in college. The biggest hurdle in transitioning from college student to an accountant is understanding that, at first, you will have absolutely no idea what you’re doing, yet understanding that is totally okay! As an entry-level staffer, it is not expected that you come into the real world with the entire Internal Revenue Code memorized.

So, how can you help make a successful leap from student to accounting professional? Here are 10 tips to do just that.

1. Remember that practice makes perfect. Not understanding what you are doing may be frustrating and discouraging at times but keep trying.
2. Know that patience is key. This doesn’t come overnight, nothing ever does.
3. Ask a million questions. There is no such thing as a stupid question, because you want to make sure everything is accurate as can be. Don’t just complete a task and submit it; ask questions to make sure you are understanding the purpose behind what you’re doing (we like to call this “the why”).
4. Don’t be afraid to mess up. If at first you don’t succeed, try, try again. Use your mistakes as learning opportunities to help ensure that you do it right the next time.
5. Create a schedule. Creating a list/schedule of your assignments will not only help you to prioritize tasks, but it will also increase your awareness of the value of time management, organization and your ability to keep on track to accomplish your tasks.
6. Record virtual meetings. Don’t focus on writing everything down. Instead, ask to record a meeting so that you can go back and process what was discussed afterwards.
7. Get the CPA Exam out of the way ASAP. Working fulltime and studying for the CPA Exam is, by far, one of the hardest things to juggle: but it’s not impossible! As you grow and excel within your career, you gain more responsibility, making it more difficult to find time to study. So even though tackling the CPA Exam right away might seem daunting, there will likely never be an easier time for you to do it.
8. Take mini breaks. There is something to be said for people with sedentary jobs and multiple computer screens; the struggle is real. Make an effort to take breaks to re-charge — get up, take a walk and grab a cup of joe while you’re at it.
9. Reward yourself. Working long hours can be dreadful at times, so having something to look forward to after work will help keep the motivation present. Something as simple as treating yourself to a pepperoni pizza and watching a movie on a Friday night can go a long way. Trust me.
10. Realize there is no one-size-fits-all approach.Ultimately everyone has a different story when starting their career in accounting.

At the end of the day, remember that it is a marathon, not a sprint, so make sure you stop and smell the roses along the way and enjoy every bit of your transition into the real world.

One of the most important things you can do in college is to find an internship that allows you to reinforce what you’re learning in the classroom in a real-world setting. The purpose of an internship is to allow you to learn about the industry you’re studying and give you a glimpse into what you can expect in the future.

Looking for an internship can be challenging, given the current COVID landscape, but here are five tips that can help:

1. Prepare. Prepping for an internship starts long before filling out the application for the position. Your internship preparation should start in the classroom as soon as possible. This simply means start forming meaningful connections with your professors, peers and advisors. Not only will these individuals provide insight into their careers, but they also have relationships with professionals within the industry who could possibly help network an internship or allow for other learning opportunities. These relationships can be formed by staying after class to have a discussion with your professor or by joining different clubs that your university may offer that revolve around your major or a mentoring program. These connections will assist you when it comes to looking for opportunities within the industry.
2. Apply. When it comes time to apply for internships, it’s best to apply for anything and everything revolving around your major; do not be closed-minded in terms of the size of the company or the industry they serve. With internships, there is no such thing as looking too early. You should always be on the lookout for internship opportunities and seek out roles that suit your current skills or education level.
3. Experience. After obtaining an internship, the most important things you can do to make the most out of your experience is to ask questions, have a positive attitude and always keep your eyes and ears open! Take advantage of your time with the company and ask questions regarding the projects you’re completing, the company you’re working for and your coworkers’ experiences within the industry. Most of the time, your coworkers will be more than happy to discuss their career paths and eager to give you any guidance that you are seeking. Maintaining a positive and professional attitude throughout your internship is essential to your success within the company. You can display your positive attitude by always accepting the assignments you’re given, no matter how small or large, and by showing you genuinely care about the work you’re completing. You should also always take advantage of any opportunity to help you stand out from the rest of your peers.
4. Learn. Some of the best learning opportunities during an internship come from being in an environment where more-experienced professionals are working. An intern can benefit greatly from simply sitting in an office and listening to the conversations that are taking place around them. You can learn how to talk to clients, expand your industry-specific vocabulary and hear how professionals handle different challenges. Observe your surroundings and reflect on how you can apply what you’ve learned to your projects or how they can benefit you in the future.
5. Develop. Overall, internships are an essential part of one’s professional career. They give you the ability to develop in your career, build your resume and get a glimpse of what your future could hold.

Applying for an internship can be intimidating but, in the end, the experience you receive from it is irreplaceable.

One of the first things I get asked when I tell people that I’m studying business in college is, “What do you want to do?” The problem with that question is: 1) I have absolutely no idea what I want to do or where to start and 2) I have no idea how to find out what I want to do, given I am only entering my junior year of college. For me, I usually learn by testing different things out; therefore, when I started my internship search, I wanted to have the opportunity to see, hear and try multiple areas of business. Fortunately, I had a mentor through Seton Hall University’s Buccino Leadership Institute — Merryl Richards, former executive director at the New Jersey Society of CPAs (NJCPA) — who helped guide me through this perplexing process. After a few months of searching, she suggested that I look more into associations, specifically, the NJCPA.

Initially, I had absolutely no idea what an association did. Of course, I knew of the basic responsibilities and mission, such as to bring people together for a certain cause, goal or objective, yet I failed to have a greater and deeper understanding of what exactly associations truly do.

To find out, she connected me with Don Meyer, the chief marketing officer of the NJCPA. Upon setting up a meeting, I was pleasantly surprised and intrigued at hearing more insight into the association’s role and presence. Not only did he share his experience working with the NJCPA, but he also shared insight into his own career journey; thankfully, and reassuringly, it wasn’t exactly linear. By the end of our meeting, I was both excited and confident that working for an association like the NJCPA would give me the opportunity to truly immerse myself in the world of business and, potentially, even find a future career path.

Within a few weeks, I applied for the position and was ecstatic to officially become a summer 2021 marketing intern for the New Jersey Society of CPAs.

Week 1

During my first week, I could not help but be absolutely mesmerized by just about everything that the office had to offer. In fact, on my very first day, I was greeted with gifts, friendly faces and my very own cubicle and badge. Truthfully, this was my very first glimpse into the business world working as a business “professional.” Granted, I use the term “professional” lightly, considering the first thing I wanted to do was to decorate my cubicle!

I walked around the office and found myself falling in love with the atmosphere and culture. Although not everyone was able to come to the office on the same days due to the pandemic, I still got an incredible glimpse at the culture here at NJCPA and, presumably, for most smaller associations. Everyone welcomed me with a warm smile and friendly demeanor. It became apparent to me almost immediately that working in a close-knit environment where everyone knows one another, and where birthdays are not only acknowledged but even celebrated, was something I strived to have in the future.

I cannot believe how much I’ve learned already in just a week with the NJCPA! I may not know just exactly the type of job I want yet, but I do know that I hope to work somewhere with a company culture as welcoming and close as the NJCPA — it truly makes all the difference in brightening any workday and changing the entire day’s dynamic and outlook.

Week 2

During the second week, I found myself slowly acclimating to everything in the office. I started to familiarize myself with the commute, hours and where everything is in the office. It was comforting to feel like I was fitting in — I enjoy coming back to my cubicle and see my stuff laid out just like I had left it.

My wonderful mentor, Merryl Richards, came to visit me this week. As she walked in the office, it was amazing to watch her contagious energy and spirits lift the room. She knew nearly everyone in the office and cheerfully greeted everyone with a warm smile and friendly demeanor. It is no surprise that the company culture is the way it is, considering the individuals here take the time to build genuine connections and relationships with their coworkers.

As a woman in business, having a mentor, friend and guide is so incredibly beneficial and important. During my internship search, I was so lucky to have Merryl help me during the process and address some questions or concerns, such as “Do I want to work for a small or large company?” and Would I like to have fixed or variable compensation?” Therefore, I knew that I wanted to find another mentor this summer who could help ease the transition from full-time student to working business “professional.”

My manager, Heather Shostack, quickly appeared as the guide and confidant that I had been looking for. She arranged a few meetings this week and gave me some incredible career advice and guidance, such as her path out of college, numerous different jobs, and, finally, how she landed her position here. Hearing her path and journey was fascinating; she had previously worked as a marketing manager in different companies and even worked as a marketing consultant — a potential job path I am interested in. Similar to Don, her career journey hadn’t been linear, and she reassured me that she needed to have multiple different jobs before she found out what she wanted to do and what she liked doing.

Having these conversations are irreplaceable; sometimes, I feel like just about everyone at my age has this idea or plan for their career. It’s discouraging to feel confused and unsure, especially halfway through college. In fact, lot of my friends and classmates have their lives planned out up until what age they hope to retire. Yet, after hearing Heather’s and Don’s experiences, I not only feel reassured but also excited and proud to have absolutely no clue! Being unsure now only means I have endless opportunities and chances to venture off into different areas and eventually find the one that fits me the most. I feel myself growing immensely and it has only been two weeks — I cannot wait but see the type of person I grow into within the next eight.

Week 3

This week I had the chance to see first-hand just how quick-paced and fast-adapting the business world is. I had the opportunity to watch the filming of IssuesWatch Live broadcast, a program that offers up-to-date information about legislative, regulatory and national issues affecting CPAs and businesses in New Jersey. I couldn’t help but feel afraid that I would knock something over or sneeze and subsequently ruin the live broadcast. Fortunately, I did not; yet I had a glimpse at the team’s management of a slight dilemma that had arose.

During the broadcast, it seemed that the agenda was running slightly behind schedule, and with less than 10 minutes left in the program, there was over three pages left in the script. I wondered if the chief operating officer, Theresa Hinton, who was the program moderator, would start to increase her pace and rush to finish everything. I remembered thinking, “How did the last hour of the broadcast just slip by?” To my delight, however, the team had already planned for the possibility of this problem arising. Calmly and confidently, the producer adjusted the script on the fly, and the rest of broadcast proceeded without any blips and ended smoothly and on-time.

I sat in awe at just how quickly the team had pivoted and avoided mistakes or blips. For me, I sat there stressed and nervous, yet the team remained calm and collected — it was admirable and refreshing. This was my first glimpse at slight adversities in the workplace, and the way it was averted was stimulating. The team’s demeanor and calm disposition, despite running behind schedule, is the exact mentality I would love to adopt eventually.

Weeks 4 and 5

I sat through my first department meeting this week. It was incredible to see how all the future plans and projects were facilitated, discussed and prepared. I sat there patiently taking notes and listening to each and every team member contribute and the way they bounced ideas off one another. Everyone was encouraged to contribute, which I know is something I want to have in my future job. Having a voice and feeling empowered to participate breeds more productivity, as demonstrated in the department meeting. The proactivity within the NJCPA is truly astonishing — they continue to plan, pivot and adapt.

I also got a chance to see how marketing worked together with the other departments within the association. I enjoyed seeing the ins-and-outs of departments, such as communications, education, etc. Although I may not pursue careers in those fields, seeing the way they interface with marketing is truly incredible. I got the opportunity to see what an association truly does in each and every sector, which is another perk of working in a smaller company. I can have multiple different mentors and receive insight into the responsibilities and role each department has.

Weeks 6 and 7

I started a project conducting research on past scholarship winners. Several of them now work for incredible accounting firms and a few of them even moved up the ranks within their companies. It was refreshing and encouraging to see how those scholarship winners have transcended the same very skills they acquired during their undergraduate years at college into successful jobs and careers. In just five years, most of them made the shift from a full-time college student into a full-time employee seamlessly.

I love hearing about the diverse experiences and jobs that those around me have had prior to their current position. I am about halfway through my internship, and I don’t quite know what I want to do yet, but I know that I am getting a glimpse into many different opportunities, which will ultimately help me navigate what I can see myself doing in the future. A few weeks ago, I was feeling discouraged that I had not yet figured out what my future career looked like. But today, I am happy that I do not know just yet.

Weeks 8 and 9

I had the incredible opportunity to work one-on-one with the senior graphic designer, Diane Espiritu, this week to brainstorm ideas and see those ideas come to life. Initially, I was worried that my ideas were childish or not up-to-par. However, she reassured me that my ideas were not only valued, but also essential for understanding the best way to market towards my generation, Gen Z.

As I began researching trendy ads and marketing campaigns, it felt exhilarating to feel in charge, powerful and important. This experience truly felt as if it was giving me a glimpse into a potential career opportunity and path. By the following week, I was able to see my research transcend into something bigger: finding sample pictures and creating a “mood board” for the actual event marketing. I felt like a true business professional responsible for conducting research and seeing that research transform into something greater. They treat me with incredible respect — I feel myself flourishing everyday as a much more mature, experienced individual.

As my time with NJCPA continues, I am so grateful to see how every week I am learning something new about the business world. I get to sit in during meetings, acquire leadership experience, hold myself accountable and responsible, while simultaneously learning more about the career I would like to have some day.

Final Week

During my final week, as I finished up some projects, I took a moment to stop and reflect on the person I have transitioned into during the past 10 weeks. Physically, I look the same, but mentally, I feel much more mature and ready for the real world…in two years. Nonetheless, my time at the NJCPA has taught me so much about the type of worker I would like to be, different roles and responsibilities of associations, proactivity, business, conflict management, company culture and, above all, future career aspirations and goals I would not only like to have but fulfill.

I remember when I first started, I had no idea what to expect. I worried about small things, such as where I was working, handling the workload, what to wear, what to talk about with my coworkers, expectations, etc. Now, I can look back and reminisce on just how tiny those worries seem and how much more confident and ready I have become over the past 10 weeks.

I truly feel empowered and confident from working here. I learned so much about myself and business from not just observing, but also participating — I even sat in on a meeting featuring marketing and communications representatives from other state CPA societies! I learned what it means to not only exhibit professionalism, but to embody it. I gained valuable hands-on experience mentoring and insight that will be utilized every single day up until the day I retire.