Individual retirement accounts (IRAs) are powerful tools for building retirement savings while enjoying valuable tax benefits. Whether used as a complement to an employer-sponsored plan, like a 401(k), or as a standalone savings vehicle, IRAs provide flexibility and potential growth to help secure individuals’ financial futures.

However, with several types of IRAs to choose from, deciding which account to fund can feel overwhelming. The two most common types of IRAs are Traditional and Roth, and each offers distinct features and advantages depending on one’s financial goals, tax situation and income level.

Traditional IRAs

A traditional IRA allows individuals to make pre-tax contributions, which may qualify as a tax deduction and reduce taxable income in the contribution year. For 2025, the annual contribution limit is $7,000, or $8,000 for those age 50 or older and eligible for catch-up contributions. These contributions grow tax-deferred, meaning taxes on earnings are postponed until the funds are withdrawn in retirement. Once an individual reaches age 73, they must begin taking required minimum distributions (RMDs), which are taxed as ordinary income. Traditional IRAs can be especially beneficial for individuals who expect to be in a lower tax bracket during retirement, as the deferred taxes could result in overall savings compared to paying taxes at higher rates during their working years.

Roth IRAs

Roth IRAs, on the other hand, are funded with after-tax dollars. While contributions do not reduce taxable income in the year they are made, the advantage lies in the tax-free growth of one’s investments. When funds are withdrawn in retirement, both the contributions and earnings are tax-free, provided that the account has been open for at least five years and the taxpayer is age 59½ or older.

For 2025, Roth IRA contribution limits are the same as those for traditional IRAs: $7,000 or $8,000 for individuals 50 or older. However, Roth IRAs have income limitations, with eligibility to contribute directly phasing out at $146,000 to $161,000 for single filers and $230,000 to $240,000 for married couples filing jointly. Unlike traditional IRAs, Roth IRAs do not require RMDs, making them a more flexible savings option for those who may not need to access their funds during retirement. This flexibility, combined with tax-free growth, also makes Roth IRAs advantageous for estate planning, as the account can continue to grow tax-free for heirs.

For high-income earners who are ineligible to contribute directly to a Roth IRA, the backdoor Roth IRA offers a valuable workaround. This strategy involves contributing to a traditional IRA and then converting the funds to a Roth IRA. To execute a backdoor Roth IRA, one must first make a non-deductible contribution to a traditional IRA using after-tax dollars and then convert the contribution to a Roth IRA, ideally within a few days, to minimize the chance of earning taxable investment gains in the traditional IRA before the conversion. When executed properly, the conversion incurs little to no tax liability. However, it is important to be aware of the pro-rata rule, which requires the IRS to treat all of a taxpayer’s traditional IRA accounts as one. For those who have pre-tax balances in other traditional IRAs, a portion of the conversion will be taxable. Timing also matters when executing a backdoor Roth IRA. While IRA contributions for a given tax year can be made until the tax filing deadline (typically April 15 of the following year), the conversion itself is taxed in the year it is completed. To simplify tax reporting, it is often best to complete the contribution and conversion in the same calendar year.

Weighing the Options

When deciding which IRA to fund, several factors should be considered, including one’s current and expected future tax brackets, income level and retirement goals. A traditional IRA may be the better option for those who expect to be in a lower tax bracket during retirement and want the immediate benefit of a tax deduction. Conversely, those who expect to be in the same or a higher tax bracket in retirement may see greater long-term advantages with a Roth IRA due to its tax-free growth. For high-income earners, the backdoor Roth IRA provides a way to enjoy the benefits of a Roth IRA despite income limitations.

There are some other important factors to consider. For example, Roth IRAs may be particularly appealing to younger individuals with a longer investment horizon, as they have more time to benefit from tax-free growth. Additionally, Roth IRAs are often preferred for estate planning purposes due to the absence of RMDs, which allows the account to grow tax-free for heirs. Market conditions can also play a role in timing Roth conversions, as executing the conversion during a market downturn may help reduce the taxes owed on the conversion amount.

IRA contributions for the 2024 tax year can be made until April 15, 2025. This deadline applies to both traditional and Roth IRAs, allowing individuals to maximize contributions even after the end of the calendar year.

IRAs are essential components of a well-rounded retirement plan, offering tax advantages and opportunities for long-term growth. The decision to choose a traditional IRA, Roth IRA or implement a backdoor Roth strategy depends on each person’s unique financial situation. With proper planning and execution, these accounts can help individuals achieve a comfortable and financially secure retirement.

The COVID-19 pandemic reshaped the nonprofit landscape, exposing vulnerabilities in financial planning while offering valuable lessons in adaptability and resilience. As CFO of Make-A-Wish New Jersey, I witnessed firsthand how strategic planning and financial agility can help navigate uncertainty. Here are five lessons learned from the pandemic that still work:

1. Flexibility in Budgeting is Essential

The pandemic demonstrated the need for dynamic budgeting that prepares nonprofits for uncertainty. Developing best-case, worst-case and most-likely scenarios provides organizations with a roadmap:

• Best-case: Plan to reinvest surplus funds into strategic initiatives like expanding programs or improving infrastructure.
• Worst-case: Identify cost-cutting measures, such as deferring non-essential expenses or reallocating resources.
• Most-likely: Use this as the foundation for routine operations, ensuring alignment with expected revenue and expenses.

This approach reduces reactive decision-making and ensures operational stability, even in a crisis. CPAs can support nonprofits by implementing rolling forecasts and scenario analyses that adapt to evolving conditions, fostering a culture of proactive planning.

2. Diversified Revenue Streams Provide Stability

The pandemic revealed the risks of reliance on a single revenue source. Diversifying income — through grants, individual donations, corporate sponsorships and digital fundraising — helps mitigate vulnerabilities.

CPAs play a crucial role in assessing revenue composition and identifying over-reliance on any single stream. By guiding nonprofits toward more balanced funding strategies, CPAs can ensure financial stability while aligning with organizational capacity and mission. Moreover, diversification strengthens donor engagement by appealing to various funding preferences.

3. Technology Is a Game-Changer

Understanding an organization’s technological capabilities is key to sustaining operations in uncertain times. During the pandemic, technology enabled nonprofits to shift to virtual events, implement online donor systems and deliver programs digitally — all while maintaining donor connections and continuity of services.

Investing in technology doesn’t just improve efficiency; it also positions nonprofits to remain competitive and relevant. CPAs can guide nonprofits in evaluating existing tools, securing funding for upgrades and assessing return on investment to ensure technology is used strategically to achieve mission objectives. A forward-looking technology plan is now essential for resilience in an increasingly digital world.

4. Reserves and Transparency Are Cornerstones of Resilience

Robust reserves and unrestricted investments proved invaluable during the pandemic. Endowments generate steady income to support essential programs, while unrestricted investments provide liquidity to address urgent needs. These financial buffers safeguard an organization’s mission and allow them to adapt to disruptions without compromising long-term goals.

Equally important is transparency with donors. Regular updates on financial health and program outcomes build trust and strengthen relationships. CPAs can assist nonprofits in crafting reserve policies, modeling financial scenarios and developing reporting frameworks that foster donor confidence.

5. CPAs Play a Role in Building Resilience

Nonprofits increasingly look to CPAs for strategic insights beyond compliance. CPAs bring a unique perspective that helps organizations optimize budgets, diversify revenue, leverage technology and strengthen reserves. By working closely with nonprofit leadership, CPAs can identify opportunities for growth and build financial strategies that ensure long-term sustainability.

In a rapidly changing environment, CPAs also play a pivotal role in helping nonprofits interpret financial data, evaluate risks and align resources with mission-critical priorities. Their expertise is instrumental in creating agile, resilient organizations prepared to weather uncertainty and seize opportunities.

The COVID-19 pandemic was a wake-up call for the nonprofit sector, emphasizing the need for flexibility, diversification, technology, reserves and transparency. These elements are not merely responses to past challenges but foundational strategies for building resilience and delivering long-term impact. As trusted advisors, CPAs are essential partners in this journey, helping nonprofits strengthen their financial health and navigate future uncertainties with confidence. By applying these lessons, organizations can ensure their ability to fulfill their missions and remain a vital force for good, no matter the challenges ahead.

In order to avoid paying federal (and often state) income tax on revenue generated by a nonprofit organization, the organization generally must affirmatively apply for tax-exempt status. The type of tax-exempt organization generally controls how much revenue can avoid tax under the federal tax rules. For example, an Internal Revenue Code (IRC) section 501(c)(3) organization may be exempt as a private foundation, which must pay income tax on net investment income, or as a public charity that avoids the net investment income tax. In total, there are 29 different tax-exempt organization types under IRC section 501(a), with 25 different categories found under section 501(c). Each organization type has different levels of tax-exempt status, but all may be subject to the unrelated business income tax (UBIT), which is a tax assessed on income that is generated by an unrelated trade or business.  

What Qualifies 

To fall under the unrelated business income rules, an activity must meet the following three requirements: 

1. Be considered a trade or business: There is no objective definition of what is considered a trade or business. Instead, the IRS looks at multiple factors to determine whether an activity rises to the level of a trade or business. An activity is generally found to be a trade or business if it is carried out in a business-like manner, and there is an expectation that the activity will generate a profit.
2. Be regularly carried on: To determine whether an activity is regularly carried on, the IRS will focus on the type of activity and the regularity required of that activity. For example, if an organization operates a store that is open every day with set hours, it would generally be found to be regularly carried on. In contrast, if an organization put on a one-time sale event at a local store to generate revenue, the “regularly carried on” factor would likely not be met.
3. Be substantially unrelated: When determining whether an activity is related to an organization’s exempt purpose, the organization must analyze the activity being performed — not what is ultimately done with the revenue generated by the activity. This analysis is very fact specific and may be challenging to determine. For example, an organization whose exempt purpose is the furtherance of the arts within a community may argue that putting on an arts festival annually is related to their exempt purpose. However, if an organization whose exempt purpose is to protect wildlife puts on an annual arts festival to raise funds, it becomes harder to link an art festival to the protection of wildlife.

Not all unrelated business activities will fall under the UBIT rules. For example, some income from investment activities — interest, dividends, capital gains and rental income — may be unrelated to the organization’s exempt purpose but are specifically excluded from the definition of unrelated business income for public charities and certain other organizations. In contrast, advertising revenue generated from a publication put out by an organization would generally fall under the UBIT rules due to its commercial nature. 

UBIT Reporting 

Once a charitable organization makes the determination that an activity falls within the unrelated business income rules, the organization must separately account for the revenue and expenses related to that activity. If the gross income from the activity exceeds $1,000, then the organization must file a Form 990-T to report the revenue and expenses and calculate any UBIT that may be owed. Each activity must be separately reported with its own tax calculation. If an organization invests in publicly traded partnerships or makes other investments that report unrelated business income, the income from these investing activities may qualify to be aggregated for reporting and tax calculation purposes. 

Form 990-T is due on the 15th day of the fifth month after the end of the organization’s tax year. An organization that has a year-end of Dec. 31 will need to file Form 990-T by May 15 of the following year. The organization may also apply for a six-month filing extension by submitting a request on Form 8868 on or before the original due date. Note that this extension is separate from an extension to file the organization’s Form 990, 990-EZ, 990-N or 990-PF. In addition, any taxes that may be owed must be paid by the original due date of the return. Payments are made electronically using the Electronic Federal Tax Payment System (EFTPS). Late payment and late filing penalties may apply if the organization misses these deadlines.  

Tax-exempt organizations should be cautious when engaging in activities that may not be substantially related to their exempt purpose. When an organization has a significant amount of revenue from unrelated business activities, the organization may owe a significant amount in tax or may even jeopardize its tax-exempt status.  

“If you want to stop losing money, stop performing.” This was my tongue-in-cheek advice to the artistic director of a nonprofit choral organization. Each concert cost them more than $10,000 over and above the ticket sales they took in.

The same is true for almost every nonprofit. So, stop doing what you exist for and your financial problems will be solved? Obviously, that’s not a great option.

As a CPA advising nonprofit clients, you’ll encounter this fundamental challenge: balancing mission fulfillment with financial sustainability. While “just stop” might technically solve their financial equation, it completely misses the point of why these organizations exist. Instead, here are some strategies to share with your clients for managing their cash flow while continuing to serve their mission.

1. Help Them Master Revenue Planning

Guide your clients to understand their revenue streams. Start by helping them identify their minimum guaranteed receipts — these are the funds they can count on with near certainty. This becomes their baseline for budgeting decisions.

Think of it as building a house: you wouldn’t construct the roof before ensuring the foundation can support it. Similarly, advise your clients not to commit to programming costs until they’ve secured their baseline funding.

2. Recommend Subscription-Based Donations

Show your clients how one-time donations are like catching raindrops in a bucket — unpredictable and inconsistent. Help them understand how subscription-based giving programs transform those sporadic raindrops into a steady stream. Research shows that donors typically give more through recurring donations, providing more-predictable revenue.

Help them develop different “membership” levels with appropriate perks, making it easy for supporters to see the ongoing value of their contribution.

3. Guide Them in Building Strategic Cash Reserves

Teach your clients that smart cash management isn’t about keeping all funds in a checking account. Instead, advise them to:

• Maintain only enough operating cash for one to two weeks of expenses.
• Move excess funds into reserve accounts that earn interest.
• During profitable periods, build an emergency fund.

Think of cash reserves like a squirrel storing nuts for winter — you need enough readily available for immediate needs, but the rest should be safely stored away for leaner times.

4. Implement a 52-Week Rolling Cash Flow Model

Your nonprofit clients often face dramatic seasonal swings in both income and expenses. Show them how a 52-week rolling cash flow model helps:

• Visualize their entire year’s financial patterns.
• Identify potential cash crunches before they occur.
• Plan strategies to smooth out the peaks and valleys.
• Make proactive rather than reactive financial decisions.

5. Optimize Workforce Strategy

Since staff costs often represent the largest expense for nonprofits, help your clients develop a tiered approach to staffing:

• Maintain minimal paid staff for critical roles.
• Build a robust volunteer program for support functions.
• Offer meaningful non-monetary rewards (e.g., exclusive access, recognition).
• Create clear paths for volunteer development.

Remember: volunteers aren’t free labor — they’re mission-driven supporters who deserve investment and appreciation.

6. Provide Additional Cash Flow Best Practices

Coach your clients on these fundamentals:

• Negotiate favorable payment terms with vendors.
• Accelerate receivables collection.
• Time major expenses to align with revenue peaks.
• Maintain strong banking relationships.
• Regularly review pricing structures.
• Explore grant opportunities strategically.

The Bottom Line

By implementing these strategies, you can help your nonprofit clients build financially sustainable organizations while fulfilling their missions. The key is to help your clients understand that financial sustainability isn’t about having the most money, it’s about having the right amount at the right time to do what matters most. With your guidance, your nonprofit clients can continue making a difference while maintaining fiscal health.

Remember: Their mission is why they exist, but strong financial management is what allows them to continue existing.

Here are the lessons I've learned in my first quarter century of working in public accounting — actually, it's been 27 years — but who's counting?

The day I started writing this was a Friday in the summertime. Fridays are much different than they used to be when I first started in this business. Fridays are now a day to catch up on emails, make phone calls, do some billing and do my timesheet. Then, when I am done with that, it's time to help my wife with some household projects, maybe get the dogs to the vet or work as a pool boy at the house. I was inspired to write this piece because of the negative press the accounting industry has recently received. 

The supply and demand dynamics in accounting have been a factor since I started in 1996, but they've worsened in recent years. I'm not sure if it's due to the 150 credit hours required to sit for the CPA Exam — or perhaps the misconception that a career in accounting means sacrificing your personal life. The latter is simply not true; with proper time management, you can achieve a great work-life balance in this field. Meanwhile, the evolution of industries like technology and alternative income streams has led to an inherent shortage of available candidates. Sometimes, I joke that if I were in my 20s today, I might just become a social media influencer. My family teases me because I tend to buy anything that's marketed well on Instagram.

The Early Years

The truth is, this business has afforded me an excellent life. My dad is a CPA, and I used to admire how quickly he could add numbers on an adding machine tape — his fingers seemed to fly! He inspired me to pursue a career as a CPA. I've dedicated a lot to this profession, which has given me so much in return. I started at a small firm making $22,000, then moved on to CohnReznick and EY before joining Wiss in 2002. Each step of my journey was influenced by connections I made along the way; for instance, I served coffee and bagels to the people who later hired me at CohnReznick while working at a deli during high school and college. That experience taught me the true meaning of customer service, and I still make a pretty mean egg sandwich! The deli owner once told me, "If a customer wants a fresh cup of coffee, brew a new pot."

Accounting Landscape

In recent years, that coffee example has been a good reminder about customer service. Firms have made significant investments to meet their clients' evolving needs. While many say that robots are coming, the reality is that this presents an opportunity for us to provide even greater value to our clients. Who has more data than we do? Clients will always need a trusted advisor, especially in today's fast-paced environment. As CPAs, we are their most trusted partners.

This is, has been — and always will be — a relationship business. Although it might feel more transactional today due to reduced time in the field and less face-to-face interaction through tools like Zoom and Teams, the essence of our work remains rooted in relationships. I encourage all of my teams to "walk the halls" of their clients. Even if you arrive with a light agenda, the conversation doesn't always have to focus on work. As we learned during the pandemic, human connection is vital in business. The more trust we build with our clients, the more they will choose to work with us; it's simply a fact. Ask yourself, do you want to be an order taker or a trusted advisor?

As I reflect on my time in this business, there are five pillars of success that come to mind:

1. Build Relationships

• Internal/External Client Service. Internal client service — working effectively with your teams — is even more crucial than external client service. Clients can't receive outstanding service from the firm without a well-oiled, cohesive team. It truly takes a village to serve a client in today's environment. The more team members you introduce to your client, the better their experience will be, leading to a more profitable relationship.
• Networking. Building relationships with your peers at the firm is incredibly powerful and should begin when you first join an organization. To this day, I'm still connected with those in my entry-level class. It doesn't solely involve networking with people outside one’s firm like bankers or lawyers.
• Leadership. It's never too early to start thinking about leadership and management. As a young associate, you may focus on executing tasks, but when you get promoted to manager, you will need to know how to handle relationships. Reading books and listening to podcasts on leadership and management, even at a young age, is a wise investment in your future.

2. Enhance Communication and Business Writing

• Becoming an accountant doesn't mean you can neglect writing and communication skills — quite the opposite. Effective communication and business writing are among the most critical skills for a successful public accounting career.
• Anticipate client needs. Like a skilled quarterback, you must be able to throw to the open receiver. Anticipating where the receiver will be at the end of the route is essential for building strong client relationships.
• Listen more than you talk. Listening is just as important as conveying your message.
• Have a long-term perspective. This business is a marathon, not a sprint. It's not a get-rich-quick scheme; it takes years of cultivating both internal and external relationships to achieve your professional and personal goals.

3. Create a Support System

• Don't bring work problems home. It's crucial to maintain boundaries between work and home life.
• Support your family. I've worked extremely hard during my 27 years in this field, but never missed any of my kids' games, school events or important milestones. With today's technology, it's possible to be flexible, nimble and responsive.
• Embrace flexibility. To be honest, I was practicing a flexible work arrangement long before it became a formal option.
• Seek out a mentor. I was fortunate to have a wonderful mentor at the firm. He was the best listener I've ever met. As I navigated my career, he allowed me to make mistakes while guiding me toward my long-term goals.
• Faith, family and firm. This motto guides my life. Regardless of your faith, having a spiritual presence has been one of the most profound influences on my success.

4. Develop Your GRIT

• Hard work beats talent. Hard work always triumphs when talent doesn't put in the effort.
• Ask for more when you're slow. When you have the capacity, don't hesitate to seek additional responsibilities.
• "Go into the tent." I coach my daughters' sprint track team for ages 13 to 15. At league championships, the tent is where the girls line up before their races. This is the moment when anxiety is at its peak; they all want to perform their best, but the anticipation can be overwhelming. Sound familiar? Once the race is over, they feel proud of their efforts, win or lose, knowing they ran their best. I encourage everyone to "go into the tent" in your own life — make that phone call, send that email or schedule that meeting. You won't regret it.
• Stay consistent. Regular physical fitness is crucial for both physical and mental well-being. Consistency is key to success.
• Prioritize mental health. I see a mental health professional every other week to maintain my mental well-being.

5. Obtain Lifelong Learning and Purpose

• At the beginning of my career, I thought I would do my two years in public accounting and then move on to a controller or CFO role. However, over the past 27 years, I've learned something new every single day. Early on in public accounting, I had the opportunity to interact with business owners and high-level executives, which was invaluable.
• In my 20s, I worked for a large international construction company in Queens, NY. The CFO made it clear that he would only answer questions at 7 a.m. I lived at my wife's mother's house, so I had to be up by 5 a.m. She was a school bus driver and would wake up early to buy me a bagel and coffee before I headed into Queens. It wasn't fun then, but looking back, I realize how that experience sparked something in me. I learned the importance of being on time and delivering results on budget, which instilled a sense of ownership and pride.
• I was an assurance specialist for the first 15 years of my career. Twelve years ago, the firm asked me to take over the real estate practice, which required a solid understanding of tax. At that time, I knew very little about tax, so I quickly sought help and asked many questions of my tax-expert colleagues. Today, public accounting offers numerous opportunities to pivot within the firm, whether in advisory, tax, assurance, or family office services.
• For the last few years, my daughter and I have raised money for a unique charity each year by running a 5K on Thanksgiving morning. Knowing that I am helping others, even if it's just a small contribution to a greater cause, gives me a sense of purpose.

It's especially important for those of us who have found success in this business to share our stories. A career in public accounting has provided me with so much; I've been able to support my family financially and never miss a moment. My son is an accounting major at the University of South Carolina, and I hope this inspires him as well.

I want to give a shout-out to my family, especially my wife of 22 years, Patti Narcise. Thank you for your unwavering love and support throughout this journey. I have three children: Alex (20), Abbey (18) and Avery (12). They are the most important people in my life.

There is still a long way to go in this business, but I am very excited about the future of the CPA profession and all its possibilities.

There is no shortage of articles, podcasts or webinars discussing the current state of accounting education, as well as what aspects should be changed to attract and retain students throughout the high school and college pipeline. In addition to these changes, the profession is in the midst of a dramatic technological shift, with tools such as blockchain, tokenized transactions and artificial intelligence (AI) driving change through every aspect of the accounting world. Educators and institutions of higher education find themselves tasked with not only trying to attract and retain students in the face of accounting pipeline challenges, but also trying to integrate these emerging topics and technologies into the classroom. And this is all while seeking to prepare students for a revamped CPA Exam that is both more personalized and more technologically oriented.

While sounding like being between the proverbial rock and hard place, this is actually an opportunity for something many educators have long clamored for: flexibility to experiment and the ability to not just teach from the text or to a certain exam. Let’s take a look at a few strategies that educators can implement today to better integrate technology topics with zero or almost zero cost to students.

AI-Driven Accounting Problems

One approach is to begin by explaining how AI is transforming the accounting field, particularly in areas like automating repetitive tasks, fraud detection and data analysis. Lectures can highlight the growing importance of AI in financial decision-making and how understanding these tools is becoming essential for modern accountants.

Professors can then introduce AI-powered accounting software, demonstrating the features in a classroom setting. Assignments can be designed for students use these tools to automate tasks such as data entry or tax calculation or to analyze large datasets to identify trends and anomalies. This hands-on approach gives students practical experience with the technology they will likely encounter in the workplace.

Some of the software options that provide free trials and/or educator versions for hands-on experience with AI include, but are not limited to, the following:

• QuickBooks provides a free trial with AI features for automating bookkeeping tasks.
• Microsoft Power BI’s educator licenses allow free access to AI-driven data analytics tools.
• MindBridge AI Auditor offers limited free trials, allowing students to explore AI in auditing.

Crypto Integration into Accounting Courses

Instructors can also incorporate case studies that demonstrate how companies are incorporating cryptocurrency in their operations and the specific accounting challenges posed, such as valuing crypto assets, recognizing revenue from crypto transactions and understanding tax obligations in different jurisdictions. The real-world adoption of crypto payments, including by firms with household names like PayPal, provides a wide range of information from which to construct problems, discussions and assignments.

Hands-on projects can involve students in using blockchain-based accounting systems or wallets, allowing them to record transactions using cryptocurrency. Simulated accounting exercises involving crypto transactions help students understand how to report and audit cryptocurrency holdings.

Students could also explore the regulatory environment surrounding cryptocurrency, examining frameworks like the Financial Accounting Standards Board (FASB) guidance on digital assets and the IRS rules for crypto taxation. Since all of these publications are publicly and freely available, these are also excellent resources from which both instructors and students can learn.

Additionally, several crypto wallet and service providers provide free demos or access that can be utilized, including the following:

• Coinbase provides free tools and a sandbox environment for trading and managing cryptocurrencies, including opportunities to take free course and earn crypto as a result.
• Cryptoverse offers free educational modules on cryptocurrency and blockchain for students.
• BitPay has educator resources on accepting and managing crypto payments for financial reporting.
• IBM SkillsBuild offers free access to courses, whitepapers and other learning resources.

Accountants and accounting educators are no strangers to integrating new technologies and tactics into work products; the newest batch of emerging technologies are critical to know and even more important to teach. 

Traditional accounting classes such as financial and managerial accounting are important and serve as the foundation for the greater accounting profession. A solid understanding of these concepts is essential and paves the pathway for many other exciting accounting topics. However, young professionals are increasingly expected to enter the practice with additional abilities such as analytical, technological and planning and organizational skills. The recently revamped CPA Exam certainly reflects this new focus with these topics mixed throughout the various sections.

Additionally, while there is still great value in the traditional classroom format — a full three-credit course with regular classroom meetings and plenty of in-person discussion where students can learn communication skills — students also desire flexibility that works with busy schedules. This means online offerings, exposure to a variety of topics, availability of customization, etc. Students might want to add an extra credit here or there (as in one credit), rather than a full three-credit course. This can be an especially useful approach in gradually working toward the 150-hour requirement.

Rutgers’ Flexibility

At Rutgers Business School, we have a program that checks all these boxes in one flexible program. The Build Your Own Courses (BYOC) series is an innovative online learning initiative developed by the Accounting Information System (AIS) and Continuous Auditing & Reporting (CAR) Lab which builds on the “School With A Million Courses” (SWAM) platform, a learning management system built by the AIS department to offer diverse modules on a variety of subjects.

The program was developed by Miklos Vasarhelyi, KPMG Distinguished Professor of Accounting Information Systems and Director of Rutgers Accounting Research Center and CAR Lab, along with Hussein Issa, associate professor with tenure.

Basically, each course is worth one credit and is made of five modules. One module is mandatory, which sets the tone for the other modules selected. Students can “build their own course” with a variety of topics that interest them. Basically, the students can select any four modules from a library of over 65 modules (and increasing). 

For example, a potential course option is AI in Accounting and Auditing. The required module is Basics of Artificial Intelligence in Accounting and Audit, which introduces the topic of the one-credit course. The students can then pick four choices from the modules library, such as the recommended modules below: 

• Basics of Continuous Auditing and Continuous Monitoring
• Introduction to Process Mining
• Use of Classifiers in Audit
• Analyses of Exceptions and Anomalies
• Duplicate Detection Techniques
• Introduction to Audit Automation
• Basics of Clustering for Audit
• Basics of Regression Analyses for Audit
• Advanced Artificial Intelligence in Accounting and Audit

Along with great flexibility with these courses, there is still full instructional support. Students are required to successfully complete a set of assessments that can include quizzes, projects, case studies and exams. These assessments are dependent on and relate to the specific modules selected by every student.

Thus, the BYOC series allows the flexibility demanded by its users and provides a fantastic opportunity for students to gain the necessary skills for an ever-changing profession — one credit at a time. There is no one “right way” to learn, no “one size fits all” plan, so why not mix it up? It will engage more students. 

A New CPA Path Emerges

As we think about the fall season, we have a lot to reflect on. The 150-hour requirement for CPA licensure is always top of mind. After much discussion over a long period of time, the American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA) recently unveiled an alternative pathway to the standard 150-hour requirement. The proposed CPA Competency-Based Experience Pathway is intended to help the accounting profession fix our well-publicized CPA well-publicized CPA shortage.

The additional option would not replace existing pathways to licensure but aim to provide an alternative pathway for candidates without lowering the bar to enter the profession. The proposed pathway would allow CPA candidates to obtain an additional year of competency-based work experience instead of the additional 30 hours to demonstrate their professional and technical skills. (See the chart below.) Candidates would still be required to earn a bachelor’s degree, complete one year of general experience and pass the CPA Exam.

Under the proposal, candidates could become a CPA by demonstrating skills in areas such as ethical behavior, critical thinking, audit services, tax engagements and financial reporting based on a year of competency-based work experience. Candidates would be required to exhibit all seven professional competencies and at least one of the three technical competencies, which would be verified by at least one “CPA Evaluator” in their organization. In addition, a CPA Candidate must obtain one year of general work experience.

In line with that proposal, the AICPA and NASBA are also recommending changes to the Uniform Accountancy Act (UAA). The UAA model legislation gives state legislatures and boards of accountancy a national model that can be adopted in full or in part to meet the needs of their own jurisdiction. The changes in the UAA provide for implementing the competency model. They would also make changes to the current substantial equivalency provisions in the UAA, which would be monitored and implemented by NASBA.

Comments on the proposals are due Dec. 6 and Dec. 30, respectively. The AICPA and NASBA are aiming to finalize the framework as early as February.

We at NJCPA support an alternative pathway to licensure but we have fundamental differences with the AICPA/NASBA proposal on how to get there. The basis of our recommendations is to ensure ease and to streamline the process to reduce barriers to licensing while supporting the rigor that is expected to enter the profession. 

The two proposals were reviewed at the NJCPA’s Board of Trustees meeting on Sept. 26. The Board supports licensure with an additional year of experience instead of 30 credits but does not support the proposal’s requirement that the first year of experience be done within the competency-based framework outlined in their proposal. We are concerned about the onerous compliance requirements on employers to document specific competencies. We are also concerned about the potential to disproportionately impact small firms. 

The Board did not support the draft UAA’s proposal to adopt a modified version of the current substantial equivalency system to provide for interstate mobility. Instead, the Board supports the concept of “automatic mobility,” which provides mobility privileges to any person with a CPA license in any other state, so long as they have passed the CPA exam, received a bachelor’s degree, and have two years of experience.

A member working group was formed by the Board to compose the NJCPA’s response by November, which will be shared with members and interested stakeholders. We’d also like to hear from you at feedback@njcpa.org.

You can learn more about the proposals at our free webinar on Nov. 13 or Nov. 19. And, as always, learn more about what the NJCPA and others are doing to meet the pipeline challenge at njcpa.org/pipeline.

As technology continues to become more advanced, it’s more important than ever to be able to identify imposter scams and protect yourself from them. An imposter scam occurs when a scammer pretends to be someone else to deceive an individual into sending them personal identifiable information or money or allowing direct access to bank accounts. In 2023, more than 330,000 business impersonation scams and more than 160,000 government impersonation scams were reported to the Federal Trade Commission (FTC); losses from these scams were more than $1.1 billion, which is about three times what had been reported in 2020.

Imposter scams do not discriminate. Although we typically hear about the elderly being common targets of fraudsters, per the FTC, younger adults, including Gen Z and millennials, were 34% more likely to report losing money due to fraud compared to individuals over 60. Earlier this year, a financial-advice columnist for The Cut put $50,000 in a shoebox and gave it to a stranger, after being duped by a scammer pretending to be an investigator with the FTC.

An imposter scam may start with a text message, phone call, or email — it is likely that those of you reading this blog have received a threatening phone call from the IRS” or a text message from a stranger pretending to be someone you are supposed to know. The FTC has noted that scams involving text messages are on the rise. These fraudsters want you to panic and act irrationally in response to these communications.

Per the FTC, the following are some of the top imposter scams of 2023:

• Copycat account security alerts: An individual receives a text message from a company like Amazon or a bank reporting suspicious activity or unauthorized charges on his or her account. These messages frequently include an additional step, like responding “yes” or “no” to a prompt, or an offer to provide further assistance with the alleged issue. The goal of these messages is to engage in communication that will convince the person to share personal identifiable information.
• Sweepstakes scams:  A scammer convinces someone that they’ve won a prize or a contest and subsequently tricks that person into providing personal identifiable information or paying money to get access to the prize.
• Subscription renewal scams: Phishing emails or text messages attempt to trick people into paying to renew a subscription to a known business. These messages often look legitimate, including company logos and fake invoices; the FTC has seen many instances of this fraud scheme involving a subscription renewal for the Geek Squad.
• Package delivery scams: Fabricated messages about package deliveries from UPS, the Postal Service, FedEx or Amazon indicate that there’s an issue with a package delivery. The message includes a link to a website that typically requests credit card information to process a redelivery fee or update payment information.

Additionally, criminals are using artificial intelligence (AI) to create deepfake videos or phone calls utilizing voice cloning, which has made imposter frauds even more convincing. These methods are typically utilized in a family member scam, where fraudsters will use technology to mimic the voice of a family member to make it sound as if this person is in danger and needs financial assistance. Last year, scammers demanded a $1 million ransom from a mother in Arizona by using AI to clone her daughter’s voice to claim that she had been kidnapped. These scams typically target elderly family members who may be less technologically savvy; however, voice cloning has the potential to fool even the most diligent skeptic.

Action Steps

In 2023, consumers lost $10 billion to fraud, and imposter scams were the most prevalent kind of fraud reported to the FTC. The following are measures CPAs can take to recognize imposter scams and protect their clients:

• Remain educated and communicate.  CPAs need to stay informed about imposter scams and changing technology to be able to identify red flags and tactics used by fraudsters, and they need to communicate this information to clients on a regular basis. Consider creating a newsletter or an awareness campaign regarding new and developing fraud schemes.
• Instill clients with best practices. This could include monitoring bank account statements on a regular basis, avoiding communicating with unexpected text messages from unknown numbers and remaining skeptical and calm in response to unsolicited messages.
• Do an internal controls review.  Review your clients’ internal controls to identify any areas of weakness, especially around data security.

It is important to stay diligent and educated to protect yourself from imposter scams. Remain skeptical and perform your own due diligence in response to suspicious communications. Should you become a victim of a fraud scam, report it to the FTC or the FBI’s internet crime complaint center. 

While it’s certainly reasonable for the New Jersey Division of Taxation to expect that a business’s filed sales tax and income tax returns accurately reflect the business’s true financial activities, unfortunately, that is not always the case.

For numerous reasons, there may exist reporting discrepancies and/or deficiencies with respect to the business’s tax returns and associated books and records that may go back several years. Simply due to their small size, many small businesses (e.g., sole proprietorships, single-member LLCs) — particularly those with primarily cash operations —, do not have proper internal controls. Additionally, their bookkeeping and recordkeeping practices are oftentimes less than adequate.  Moreover, implementing reporting improvements, such as a point-of-sale system, are quite costly to purchase and require constant maintenance. Thus, depending on the nature and/or severity of the associated issues, the business’s stakeholders may be at risk when being audited by the Division. The resulting audit assessment may directly and adversely impact the financial affairs of the business and its owners, as well as the business’s ability to remain as a going concern. 

The good news is that many of the potentially adverse issues and concerns can be timely detected and resolved, thus ensuring that the business remains viable. For example, the business’s CPA or outsourced tax specialist should consider spearheading a team effort which, hopefully, will bring the business entity into reasonable compliance with all of the Division’s applicable statutes, regulations, rules and policies. Creating a compliance plan is a good starting point for the engagement. Many of the items within the plan should be already known and quite familiar to the team’s participants These include the nature and tax implications of the industry the business operates within; the business’s existing accounting system and associated recordkeeping procedures; and a host of other miscellaneous items.

Additionally, there are two critical areas to focus on when reviewing a cash business’s compliance with New Jersey’s taxes.

Reconciliation of Gross Receipts

All primary categories of gross receipts as listed below should be totaled annually/fiscally and then compared to each other for the last four years. 

• Monthly bank deposits
• Total sales per business income tax return
• Total sales per books and records
• Total sales per sales tax returns

All material differences should be investigated and reconciled. This procedure may prove to be extremely difficult due to the passage of time, which may result in the loss of what formerly was readily available information. However, on a go-forward basis, perform the applicable steps in this process at least on a quarterly basis and detail/support/retain the information associated with the reconciliation of gross receipts procedures.

Additionally, the reported taxable receipts as listed on the business’s sales tax returns should be scheduled and analyzed for the same four years with all issues reviewed and further investigated if required. By performing the above procedures, you may be directed into various other areas that may require further investigation and analysis. 

For example, the business’s CPA may file the entity’s income tax returns while the business’s owner may file the entity’s sales tax returns. Since the sales in a cash business (e.g., restaurant, bar, landscaping company) are usually fully subject to sales tax, the totals for each year should be approximately the same. By performing this procedure, material weaknesses in the business’s recordkeeping procedures and/or sales tax compliance processes (among other areas) may be detected. Once an issue or error is detected it can usually be corrected. Choosing to wait for the Division’s auditor to inform you about this type of discrepancy during an audit may prove to be an extremely costly decision.    

Analysis of the Business’s Cost of Goods Sold (COGS)

Reviewing and analyzing the business’s reported COGS is another important area. An appropriate test period to perform this procedure would be the last fully completed year. Generally, the records that should be reviewed are the purchase journals listing all COGS purchases, the bank statements evidencing the payment of all purchases and the purchase invoices from the associated supplying vendors. Additionally, all purchases paid in cash should be fully detailed and also supported by purchase invoices.        

Note: The Division obtains a report directly from New Jersey’s alcohol distributors fully listing all of the business’s purchases of alcoholic beverages (beer, wine and liquor) for all periods under audit. Additionally, auditors generally seek and obtain a report from the business’s additional suppliers detailing all of the COGS purchases for the audit period.

Should any issues be detected when performing this procedure, they should be fully investigated, resolved if possible, and a procedure/system put in place to ensure compliance on a prospective basis.

While the above information only scratches the surface, it’s a start in assisting and safeguarding your clients, so they can remain your clients. Instead of hearing (right or wrong) from small business owners, “Why didn’t my accountant tell me that?” I am looking forward to hearing, “Yep, made it through the audit in fine shape.”

As technology and digitization has increasingly become part of our everyday personal and professional lives, the importance of safeguarding data has only increased. For CPAs, very frequently tasked with handling personally identifiable information (PII) and other confidential/financial information, institution of solid internal controls for firm and client use is of paramount importance. One of the most commonly utilized methods for increasing the security over data is two-factor authentication (2FA). While the specifics will vary depending on the protocol implemented, 2FA is an identity and access management security method that requires users to have access to two forms of ID. This can take the form of a text code, biometric (such as with Bloomberg), facial ID (like with the iPhone) or a retinal scan. In the post-COVID economic landscape, the potential opportunity for bad actors to leverage weak controls and implementation of 2FA has continued to grow.

Two methods have been identified by the Federal Communications Commission (FCC) that have been used by fraudsters to wreak havoc leveraging the very tools individuals trust to keep data safe. Additionally, I myself fell victim to one of these methods in March 2024, so these events can happen to anyone at any time.

SIM Swapping

SIM swapping occurs when a cybercriminal obtains enough personal information — either through phishing scams or via dark web auctions — to trick the victim’s cell service provider into believing the victim has changed carriers. By completing this part, the cybercriminals have transferred the cell number to a new device and gained virtually complete control over the cell phone and all associated data. As all calls and texts are routed to the new device, 2FA protocols now provide unlimited access to all social media, financial and other accounts connected to the phone number.

Port-Out Fraud

Similar to SIM swapping, a port-out fraud occurs when the cybercriminals open an account with a different cell phone carrier than the one the victim uses. Once completed, the cybercriminals will contact the new carrier — the one with the fraudulently set up account — and transfer the victim’s number to it. While slightly more complicated than the SIM swap, which only involves activating a new SIM card, the end result is the same. This is the 2FA fraud that impacted me, and it took me several weeks to unwind and rectify. For more on this please watch the webinar (passcode:  G+^9mj&H) where the entire episode was explained in detail.

Prevention Measures

2FA fraud can strike any individual or institution at any time, but there are steps that CPAs can take with colleagues and clients to help keep important data safe and secure from cybercriminals. These are in addition to the “standard” recommendations for utilizing up-to-date firewalls, establishing (and enforcing) a password change schedule and potentially implementing passkeys for sensitive data. Let’s take a look at a few of them:  

• Invest in identity monitoring. Especially for business owners or high-net-worth individuals, investing in and establishing an identity monitoring program is essential. There are different levels of scanning and protection available but having that real-time access to news about the business and whether websites that are linked to an online profile have been comprised can allow you and your clients to proactively monitor potential hacks and breaches.
• Utilize separate personal and business devices. The popularity of bring-your-own-device (BYOD) policies has been a boon from a convenience perspective but potentially a disaster from a data security point of view. By keeping the devices, numbers and 2FA distinct from each other, this allows a greater ability to minimize damage if a 2FA hack or breach occurs, and it also provides your client with a secondary device from which to maintain contact and operations if such an event occurs.  
• Minimize the use of public Wi-Fi, enable a VPN and obtain backup numbers. As convenient as public Wi-Fi is, public networks are never as secure as an enterprise network or a home network that have passwords that are updated and only have a small number of people that are aware of and/or use them. Especially with the importance of phone numbers, enabling a mobile VPN protocol (usually via an identity protection plan) is a solid first step. Additionally, consider advising clients or colleagues to obtain a non-phone number, such as a Google number, for additional security (or even 2FA) purposes.

2FA is a powerful tool that helps CPAs keep firm and client data secure, but if not carefully monitored and updated, it can be leveraged against its users. CPAs and other financial advisors should be well versed in how to effectively leverage 2FA, as well as how to prevent unethical actors from seizing control of these security measures. 

Fraud schemes targeting older adults and estates have become a growing concern in recent years. The elderly are often targeted because of their financial stability and the perception that they may not be as technologically or cognitively savvy. Estates represent significant wealth repositories and can be easy marks for sophisticated scams. CPAs can inform and educate their elderly clients and estate representatives about the most common types of fraud perpetrated against these groups and essential strategies to protect against them. The common scams/frauds include the following:

• Grandparent scam: This scam preys on the emotions of elderly individuals by exploiting their love and concern for their grandchildren. Scammers call, posing as a distressed grandchild, claiming to need urgent financial help due to an emergency, such as an arrest or accident. The urgency created by these fraudulent calls pressures the elderly victim into sending money without verifying the story.
• Imposter scams: These scams involve fraudsters posing as government officials from agencies like the IRS, Social Security Administration or Medicare. The perpetrators often claim that the victim owes money or is at risk of losing benefits, creating a sense of fear and urgency. This fear is used to manipulate victims into making immediate payments or providing sensitive personal information.
• Tech support scams: In these scams, fraudsters impersonate tech support representatives from reputable companies. They convince the victim that their computer is infected with a virus and offer to fix it. Once they gain remote access, they steal personal information or install malware.
• Romance scams: Scammers create fake profiles on social media or dating websites, building trust with elderly victims over time. Once an emotional bond is formed, they ask for money for fabricated emergencies, such as medical bills or travel expenses. These scams not only result in financial loss but also cause emotional distress.
• Sweepstakes and lottery scams: In these scams, elderly individuals are notified that they have won a prize but must pay a fee to claim it. Fraudsters create a sense of excitement and urgency, persuading victims to pay these fraudulent fees.

Social Engineering Frauds Targeting Estates

Estates are targeted by scammers for their wealth. The fraudsters explore the potential vulnerabilities of the executors or beneficiaries. Common scams in this category include the following:

• Executor impersonation: Scammers pose as executors or other estate representatives, contacting beneficiaries or creditors to obtain personal or financial details. They may claim they need this information to process payments or settle debts, exploiting the trust and lack of familiarity with estate procedures.
• Phishing attacks: Estate representatives or beneficiaries receive phishing emails that appear to come from legitimate sources. These emails or text messages contain malicious links or attachments that, when clicked, can lead to malware infections or theft of sensitive information. Phishing strategy often involves creating a sense of urgency or the promise of a tempting deal.
• Inheritance scams: Fraudsters contact potential beneficiaries, claiming to be the deceased’s relative or trusted representative. They ask for personal information or financial details to facilitate the transfer of an inheritance, often providing seemingly credible details about the deceased to build trust with the target.
• Estate planning fraud: Targeting elderly individuals or those with health concerns, scammers offer fraudulent assistance with estate planning. They may convince victims to sign documents that transfer assets or provide access to financial information.
• Fraudulent probate proceedings: Scammers manipulate or forge probate documents to gain control of an estate’s assets. They might appoint themselves as executors or beneficiaries and divert assets for personal gain.

Steps to Protect Against Fraud

CPAs can review their clients' financial activities for suspicious transactions, which would generally include monitoring for sudden large transfers, unexpected changes in spending patterns, or withdrawals that might indicate a scam. They can also recommend effective internal controls for estates, such as secure communication channels, multi-factor authentication and regular account reconciliations, as well as investigate discrepancies in estate documents. Clients should know the following: 

• Verify information independently. Never provide personal or financial information to someone you don’t know or trust. Always independently verify the identity of anyone contacting you about your finances or estate.
• Be wary of any unsolicited contacts. If you receive a suspicious call, text message, email or letter, verify the sender’s identity before responding. Use trusted and secure communication channels, and avoid clicking on links, scanning bar codes or downloading attachments from unknown sources.
• Secure your digital presence. As cybercrime evolves, securing digital communication is essential, especially regarding sensitive financial documents and confidential personal information. Strong passwords, multi-factor authentication and encrypted communication will help to prevent unauthorized access.
• Consult with professionals. Engaging CPAs, experienced estate attorneys and cybersecurity professionals can help protect against fraudulent scams. These skilled professionals will offer guidance on securing your assets, communications and proper legal procedures.
• Stay informed and educated. Staying informed about the latest scams and understanding how fraudsters operate is crucial. Education on recognizing social engineering tactics can significantly reduce the risk of falling victim to these schemes.

Safeguarding financial assets requires awareness, vigilance and proactive measures. By understanding the various scams and implementing protective strategies, elderly individuals and estate representatives can take steps to protect their assets and financial well-being. 

I am just a practical, old time, semi-retired non-tech savvy CPA who struggles to even use a TV remote control. Don’t waste my time with theory. Just give me answers to a few basic questions:

• What specific practical tasks can artificial intelligence (AI) do today to make a CPA’s life easier?
• What specific practical steps can a CPA do today to prepare AI for the 2025 tax season?
• How much will this save me?

AI Discovery

CPAs understand that there is incredible potential with AI, but they don’t know what to do with it. Last year, with my frustration and passive aggressive nature in hand, I marched into the office of Chris Stephenson, our Director of Intelligent Automation, and aired my AI grievances. I realized his answers to the above questions could help a lot of CPAs.

To him, the answer to all three of the questions above lies in the following: It’s called AI Discovery. Last year he created a think tank with about 200 CPA firm professionals who overwhelmingly said, “I don’t know where to start.” Here are some practical first steps he recommends:

1. Set up an ideation session. This part is a workshop with partners and staff that gives everyone an opportunity to present their problems and ideas for possible AI solutions. Everyone on your team probably has AI ideas.
2. Initiate scoring: So, you got a bunch of ideas but now what? This is where scoring is critical. Discovery often hinges on scoring each idea based on objective measures to determine their priority. Every firm is different, but you want to score on several dimensions like which can get solved the fastest, which will have the biggest impact, which can scale for every department, etc.
3. Do technology infrastructure assessment: Ok, you know which AI projects are going to have an impact on your business but is your firm’s system even ready for AI? You’ll need to have your tech infrastructure evaluated to determine its AI readiness, and to find out if there are any shortcomings preventing you from getting started.
4. Create a roadmap: Finally, you need a clear roadmap to lay out how you’re going to deploy each solution. Do you need to buy a solution? Build an AI? How about training employees? How do you measure if your solution is having an impact?

He instantly identified five problems where AI could help:

• Collecting payments from clients
• Requesting and processing documents from clients
• Moving trial balances to workpapers
• Responding to IRS letters
• Setting up a Chatbox to handle internal queries, like HR questions

With this information, AI solutions can be created to address each of these problems. Do your own AI discovery to identify your firm’s biggest pain points and develop a plan to attack with AI.

How Much Can CPAs Save

With AI in hand, I think about CPAs increasing their bottom-line profits by looking at the following:

• The time spent on client billing analysis such as excel spreadsheets that track time, project by project, to justify hours and bills, and put that into a client letter
• Those routine IRS Notice letters written to explain why a client’s 1099-DIV did not match the tax return Schedule B
• Other mundane tasks which I used to do in public practice that bored me

Would life have been better as a CPA 45 years ago when I started in public practice if AI existed back then? Should I even consider a return to public accounting from my semi-retirement with AI in the picture?

The answer to the first question is an obvious “Yes” and to the second question an even more obvious “No.” But for those still in the game, let’s face it. It’s time to jump on the AI bandwagon to be more profitable, have less stress, have more free time and have more fun.

Accounting seemed to catch my attention when I least expected it. I began college as a marketing major, not entirely sure of what I wanted for my future. I would think of potential career options, but none I could actually picture myself doing for the majority of my life. Scared of the future, and anchored to my past, I quickly realized that the present is the only thing I have control of. This realization pushed me to explore new areas outside of my initial field of study, leading me to discover my passion for accounting- a field I had originally overlooked.

It was during my first accounting class where this newfound interest fascinated me. Throughout my life, I have always gravitated towards structure and precision — traits that I found translate directly into the accounting concepts I was learning. It wasn’t just the numbers that stuck out to me; it was the systematic approach to understanding and managing those numbers, making it evident how closely my personal qualities were mirrored into the field of accounting.

This journey has also sparked a specific interest in forensic accounting, an area I am eager to learn more about. It is a specialization that combines my passion for accounting with a strong desire to protect the public. Despite not knowing what I wanted for my future, the one thing that I have always known is that I want to help people and make a difference in the world; whether big or small. My commitment to pursuing a career in forensic accounting stems from a strong aspiration to utilize my skills in accounting, not just for economic efficiency, but for the greater good.

As I look forward to becoming a CPA, I am driven by the positive impact I am going to make on individuals, businesses and society as a whole. It’s going to be a challenging path, but it also promises a rewarding career where I can not only excel in a supporting work environment, but also contribute meaningfully to the communities I serve.

While embracing accounting in this new chapter of my life, I’ve learned that fear of the unknown is normal, but it should never deter us from exploring new possibilities. This journey from uncertainty to discovery has taught me the value of being open to change and the importance of finding work that aligns who we are with what we dream to accomplish. Accounting, for me, is not simply just a profession — it is the perfect combination of a career that combines my skills, interests and aspirations in a way that I could have never imagined when I first stepped foot at Rowan University. Through this transition of my life, I am no longer afraid of the future. I am excited to have the opportunity to discover who I am and how I can make a difference in the world.

This article was reprinted with permission from Rowan University. Kathryn Meehan won honorable mention in Rowan's "Celebrating Success" accounting essay award program in May. 

As I’m about to begin my second year in college, pursuing a degree in accounting, I am filled with anticipation and excitement for the vast amount of knowledge and experiences that lie ahead. With each passing day, I am immersing myself further into this dynamic field, and I am increasingly captivated by the universal applicability of accounting principles and their profound impact on businesses and economies across the world. Through my academic pursuits and personal reflections, I have come to realize that accounting is more than just a profession; it is a powerful instrument for bringing about positive change in society.

The versatility of accounting principles is what initially drew me in and never fails to intrigue me. Its principles act as the foundation of financial communication, spanning various industries, countries, and economic landscapes. Whether delving into the financial records of a large corporation or a small charitable organization the language of accounting remains consistent, offering a structure for interpretation and strategic planning.

In addition, accounting provides a mentally stimulating setting where individuals can utilize their expertise to tackle real-world problems. Whether it be analyzing intricate financial information or creating plans to minimize costs, the accounting field offers continuous chances for critical thinking and finding solutions. As I continue to advance in my educational path, I find myself becoming more and more captivated by the profound influence that accountants possess in fostering and nurturing economic growth, as well as upholding financial stability and maintaining the integrity of financial markets. Through a combination of classes, and involvement in various activities outside of the classroom, I have been able to participate in practical learning opportunities that have enhanced my comprehension of accounting concepts and how they are put into practice in the business world.

Furthermore, achieving the status of a Certified Public Accountant (CPA) goes beyond simply obtaining a professional certification; it demonstrates a dedication to upholding high standards of excellence, honesty and ethical behavior. By obtaining my CPA license, my goal is to strengthen my reputation, ultimately enabling me to make a greater difference in marginalized communities. With the CPA title, I will have a platform to champion economic advancement.

My passion for accounting and my goal of obtaining a CPA license are fueled by a greater purpose. In addition to my career ambitions, I am inspired by a strong desire to impact the lives of individuals in marginalized communities. An aspiration that holds significant importance for me is the creation of non-profit organizations dedicated to offering financial education and support to minority groups and individuals facing economic hardships.

As a child raised in the Caribbean, I had the opportunity to directly witness the glaring inequalities in terms of access to financial education and resources. This experience served as a catalyst, igniting a deep-seated passion within me to be an accountant and one day utilize my expertise in accounting to make a tangible impact in the lives of individuals, specifically by advocating for and enhancing financial literacy and economic empowerment. One way in which accounting perfectly aligns with my aspirations which will allow me to create nonprofit businesses that focus on catering to minorities and underprivileged individuals. I envision establishing community-oriented initiatives that offer financial education, resources and assistance to those who are in dire need. Through these initiatives, I aim to empower individuals to escape the vicious cycle of poverty and instead, cultivate generational wealth, leading to sustained economic stability and overall prosperity for many years to come.

In conclusion, my journey into accounting has been characterized by a blend of intellectual curiosity, introspection, and a desire to make a meaningful impact on society. Looking ahead, I am eager for the chance to further my knowledge, engage in meaningful collaborations and expand my skills alongside my mentors and other students in the accounting profession. By staying dedicated, upholding ethical principles and channeling my enthusiasm for driving change, I am optimistic about my ability to use my accounting expertise to bring about positive transformations in various communities.

This article was reprinted with permission from Rowan University. Hadassa Juste won second place in Rowan's "Celebrating Success" accounting essay award program in May.  

Getting hacked as a CPA is a grave concern due to the sensitive financial information managed. If you suspect or confirm a breach, prompt action is crucial to minimize damage. Here are ten essential steps to take if you find yourself in this unfortunate situation:

1. Stay calm and assess the situation. First, don’t panic. Take a moment to gather information about the breach. Identify what has been compromised — your email, social media accounts, bank information or your computer system as a whole?
2. Disconnect from the internet. To prevent further unauthorized access, disconnect your device from the internet. This can help stop the hacker from continuing to extract data from your system.
3. Change your passwords. Immediately change your passwords for all your accounts, starting with the most sensitive ones — banking and email accounts. Use strong, unique passwords for each account and consider utilizing a password manager for secure storage.
4. Enable two-factor authentication (2FA/MFA). This adds an extra layer of security by requiring not just a password but also a second verification form, such as a code sent via text. This is also known as multi-factor authentication.
5. Notify relevant parties. Inform your bank, email provider and other relevant organizations about the breach. They can assist in securing your accounts and monitoring for suspicious activity.
6. Run a security scan. Utilize reputable endpoint detection software to perform a comprehensive scan of your device. This can help identify and remove any malicious software that might have been installed.
7. Update your software. Ensure your operating system, browsers and all applications are updated. Software updates often include security patches that protect against known vulnerabilities.
8. Pull from backups. If you have backups of important data, make sure they are in working order now. This ensures you do not lose critical information if you need to reset or reformat your device. If you haven’t been backing up your data, now is the time to start.
9. Educate yourself and your team. It’s crucial to educate yourself and your team on online security best practices. Focus on recognizing phishing attempts, avoiding suspicious downloads and using secure connections. Use secure portals with clients to exchange sensitive information instead of email to ensure encryption and data protection.
10. Initiate risk assessment and incident response protocols. Conduct regular risk assessments to identify vulnerabilities. Develop a comprehensive incident response plan covering communication protocols, data recovery and mitigation strategies.

Being hacked can be distressing, but with immediate and thoughtful action, you can mitigate the damage. Following these steps can help you regain control of your accounts and strengthen defenses against future threats. Staying up to date on state-specific regulations can also help, such as New York’s SHIELD Act, which outlines reasonable security practices and breach notification procedures, and on the IRS’s “Security Six” steps. Stay vigilant and proactive to safeguard your digital life. 

Client engagement is a crucial factor in the success of accounting firms today. To differentiate yourself, it’s best to foster strong relationships with clients by providing personalized and efficient services. Artificial Intelligence (AI) offers innovative solutions that can enhance client engagement, making interactions with your firm more meaningful and responsive.

Effective client engagement builds trust and understanding between a firm and its clients, which leads to the following:

• Improved client retention. Satisfied clients are more likely to continue using your services and recommend them to others. 
• Increased client satisfaction. Personalized interactions make clients feel valued and understood.
• Better communication. AI can help provide timely and accurate responses to client inquiries, improving the overall client experience.

How AI Helps

AI tools transform how accounting firms interact with clients by offering personalized, timely and insightful services, such as the following:

• Personalized communication. AI analyzes client data to provide personalized recommendations and insights, making communication more relevant to each client’s needs.
• 24/7 availability. AI-powered chatbots provide around-the-clock support, answering client queries and helping as needed.
• Proactive client interaction. AI tools identify patterns and trends in client behavior, allowing you to proactively address client needs and concerns.
• Improved feedback mechanisms. AI analyzes client feedback and sentiment to help understand client satisfaction and identify areas for improvement.
• Efficient scheduling and reminders. AI automates scheduling and sends reminders for important deadlines, ensuring clients stay on track with their financial obligations.

Top 10 Tools

Here are ten AI tools that can help enhance client engagement:

1. Drift helps engage with clients through real-time chat, personalized messaging and automated responses, improving communication efficiency.
2. Intercom offers AI-driven messaging solutions for interacting with clients across various channels, providing personalized support and enhancing engagement.
3. HubSpot provides insights into client interactions, helping personalize communication, track client behavior, and improve engagement strategies.
4. Zendesk streamlines customer support, offering quick and accurate responses to client inquiries and enhancing satisfaction and engagement.
5. Freshchat enables real-time communication with clients, offering personalized and efficient support.
6. Jasper AI creates high-quality content focused on client needs and pain points, generating content ideas and optimizing for SEO.
7. Perplexity AI understands market trends, client needs and competitive landscapes, which can be a valuable tool for market research.
8. Talla provides AI-powered chatbots for customer support, efficiently handling client inquiries and improving the client experience.
9. ChatBot handles client interactions, providing personalized and responsive support.
10. Salesforce Einstein offers AI capabilities for analyzing client data, predicting client needs and personalizing engagement strategies.

Implementing AI

To successfully integrate AI tools, consider these steps:

• Identify engagement goals. Determine which aspects of client engagement you want to enhance, such as communication, feedback or personalization.
• Select the right tools. Choose AI tools that align with your engagement goals and integrate seamlessly with your existing systems.
• Train your team: Ensure your team understands how to use the AI tools effectively to improve client interactions.
• Monitor client feedback. Continuously gather and analyze client feedback to assess the impact of AI tools on engagement and make necessary adjustments.
• Stay agile. Be open to adopting new AI technologies and strategies to keep your client engagement efforts fresh and effective.

By leveraging AI tools, accounting professionals can transform their client engagement strategies, offering personalized and efficient services that meet the evolving needs of clients. These tools can help enable you to build stronger relationships, enhance client satisfaction and ultimately drive business success. Where will your AI client engagement strategy take your firm?

With the accounting profession in a position where 300,000 professionals have left their jobs within two years and fewer are entering the field to fill these positions, advisory services can be transformative for your team. After all, your firm is unique. It’s important to home in on what your existing clients already want and need. It’s often more affordable and easier to sell to existing clients than attract new ones, so start thinking of offering more to the clients you already have relationships with.

But what if your clients really want or need a service that you’re not equipped to offer? Or what if your resources are stretched and you want to launch your services with as little friction as possible? Technology can help solve both problems.

Leveraging Technology

The right technology can help bridge skills gaps, ensure your services are delivered efficiently, provide the necessary insights and save time by automating tasks.

While there are many solutions available, here are a few apps that will help you start offering advisory services:

• Ignition automates proposals and payments for your advisory services to help you reclaim revenue and improve cash flow management.
• Clockwork.ai is AI-powered financial planning and analysis (FP&A) software built for professionals. Use it to provide clients with real-time financial insights and automate technical finance tasks like scenario planning and cash flow forecasting.
• Karbon is a practice management platform that can help you streamline your workflow and enhance the delivery of your services.

Every firm will have its own goals and audience. You may find that there are other solutions that help meet your individual needs. However, these three apps will cover the basics and help you deliver your advisory services more efficiently.

Once you’ve hammered out your services, pricing and technology, the only thing left to do is implement your services and monitor your results.

Monitor and Improve

Once you’ve launched your services, this isn’t the end of the road. Your goal is to deliver quality service that meets your clients’ needs and position yourself as a one-stop shop for their financial needs.

Implementing a feedback loop can help you determine whether you’re on track to reaching these goals. Then, you can use client feedback to improve your services over time.

For example:

• You can send out questionnaires and services regularly to ask, “how am I doing.”
• After client meetings, ask how you can improve or whether there are services they want or need that you don’t offer.

Make sure that you review this feedback regularly and actively implement changes to improve your services.

Scaling Your Advisory Services

As you continue to improve your services over time, you may reach a point where you’d like to scale your services. Clockwork has an excellent guide on how to scale advisory services that I highly recommend you check out.

There are so many “myths” about the accounting field — from the hours worked to the traditional pathways. My real-life story breaks all of them!

• Myth 1- Need to love math. Let me tell you what I love about my career in accounting; it’s not math.
• Myth 2 - Need to be happy with a boring job. Read my story to break this myth.
• Myth 3 - Need to stay in public accounting. I initially had plans to stay but another opportunity came along.
• Myth 4 - Need to work long hours. Perhaps sometimes there are extra hours to put in at times but there are also lots of alternatives to that.

Where it Began

My story began with majoring in accounting at Montclair State University. Upon graduation I worked at Coopers & Lybrand in their audit department. I spent eight years in public accounting as an auditor and loved it. I met so many interesting, friendly people and saw so many different companies. It was an adventure I am so glad I experienced. For example, I had clients that made Band-Aids (it was really neat to watch how these were made); companies that harvested bones for use in the medical field (what an experience I had doing the inventory there!); several colleges as clients (it was so fun to stroll through campus on my way to work). With all of these interactions, I learned a lot about the business world and developed the skills I needed to make the jump to my next job.

Next Steps

My next step was to get a job at a large publishing company as an internal audit manager. I was able to travel across the U.S. meeting the people who ran the operations of these company units and receiving an understanding of how businesses ran outside of the numbers. It was a great way to see the country, too!

Next, I took several years off to have children. I decided to go back into the accounting world part time. To accomplish this, I started cold calling local CPAs and small accounting firms. It did not take long to find work. My first job back was working for a sole practitioner doing accounting and tax returns. He was happy to get the help and was very flexible with my work schedule. Once he retired, I decided to go to a small firm. I have been working part time at small firms for almost 20 years, doing reviews, tax returns and estate work. The firms have been flexible with my work schedule — I have been fully remote now for five years.

Becoming a CPA today opens many doors. It’s up to the individual to enter them and find out what they like to do best.

8 Steps to Take Now and to Prepare for the Next Big Hike

The Department of Labor (DOL)’s new overtime rule is here – and it means big changes for many employers. Moreover, the rule impacts CPAs both as employers (since you may need to increase the salaries of your managers) and as trusted advisors to your clients to alert them regarding this important development. Specifically, the salary threshold for the so-called “white-collar” exemptions just rose to $43,888 on July 1 (and will jump to nearly $59,000 at the start of 2025). What’s more, the threshold for the “highly compensated employee” (HCE) exemption rose from $107,432 to $132,964 on July 1, then will increase to a whopping $151,164 on Jan. 1, 2025. While legal challenges to the rule are ongoing, you can’t count on a court halting the rule before the next effective date. So, now is the time to ensure your practices comply with the most recent requirements and to get ready for Phase II. Here are the top eight steps to consider.

1. Review pay practices. Under the federal Fair Labor Standards Act (FLSA), employees generally must be paid an overtime premium of 1.5 times their regular rate of pay for all hours worked beyond 40 in a workweek — unless they fall under an exemption. One of the criteria for the FLSA’s executive, administrative and professional exemptions (the so-called “white-collar” exemptions) is earning a weekly salary above a certain level. As of July 1, that level is $844 a week ($43,888 annualized). For the next phase, which takes effect on Jan. 1, 2025, the salary threshold will rise to $1,128 (or $58,656 a year). For the HCE exemption, employees must be paid at least the HCE threshold of $132,964 on July 1, and $151,164 on Jan. 1, 2025. For more information on how the new overtime rule impacts HCEs, click here.
2. Work through your decision tree. Do you currently have white-collar exempt employees who earn less than $58,656 a year (or $132,964 for HCE)? You will have to decide whether to raise their salary to meet the new threshold or convert them to non-exempt status. If you decide to convert them, there are many considerations, and you should work with legal counsel. Additionally, you may want to start tracking their actual hours worked now to help you understand the potential impact of converting to non-exempt status, as those individuals will need to be paid overtime.
3. When reclassifying employees to non-exempt, consider the impact on employee morale and prepare a communication plan. Reclassifying employees to non-exempt could have a negative impact on morale. Many employees associate prestige with being classified as an exempt-salaried employee, they like the flexibility that comes with being salaried, and they don’t want to track and record their hours worked.
4. Plan to provide advance notice of changes. You’ll want to provide a written communication to each employee about the specific changes to their compensation and what new responsibilities come with the changes, such as timekeeping and record keeping. 
5. Review your policies on company equipment and personal devices. Do you have different policies for exempt and non-exempt employees when it comes to issuing company equipment and using personal devices? Exempt employees may have more leeway to use company laptops or their own personal devices — such as smartphones — to conduct business while traveling or outside of their regular office hours.
6. Develop a training plan for managers and newly non-exempt employees. It is highly recommended that you provide detailed training to newly reclassified employees and their managers prior to the changes taking effect. The specifics may vary from business to business, but you’ll want to cover scheduled hours, overtime approval policies, timekeeping procedures, rules about meal and rest breaks and more.
7. Ensure exempt employees meet the duties test. Besides the salary test, exempt employees also need to satisfy certain duties requirements. Neither their job title nor job description alone determines whether an employee qualifies for a white-collar (or any other) exemption. This is a good opportunity to ensure they meet these standards as well.
8. Track legal challenges. A district court temporarily halted the rule only as it applies to the state of Texas as an employer while it hears an underlying legal challenge. Other lawsuits are likely to be filed throughout the country seeking a broader injunction, and you should also monitor appeals in 5th Circuit Court of Appeals. Meanwhile, New Jersey employers (and private employers across the country) will need to adjust their compensation practices to comply until and unless a court says otherwise.