A CPA firm, like any business, should always have its eyes on the horizon — looking at what’s next for its clients and its future. This often includes expanding the firm’s services or restructuring existing ones. There are several major categories of services in the accounting industry — tax, audit and advisory — and each has its own benefits.

Tax

Traditionally, tax planning and preparation services have been significant contributors to the work of CPA firms, but are they the most productive services?

Pros:

• Everyone must file taxes. Taxes are a constant; CPA firms review the tax complexity of each client and evaluate tax credits and opportunities. Offering these tax services to individuals and businesses annually provides a steady source of income for a firm.
• It’s the least expensive service. Unlike advisory services, taxes are formulaic, and new tax software has streamlined the process significantly. This is more cost effective for clients and less intensive for the firm’s staff. 

• It only happens a few times a year. Most people and businesses only file their taxes once or twice a year. This leaves little room to develop the necessary relationships with clients to ensure their return.
• The market is shrinking. Tax software companies are marketing more types of taxes as DIY, shrinking the need to go through a firm to file. This makes it harder to compete in the market.

Takeaway: Tax services are a great place to build upon for emerging firms, but they don’t present much added value if the firm is already established and looking to grow.

Audit

Like taxes, audits have traditionally served as a primary source of revenue for CPA firms. This is where the most value can be added for a firm that is considering how to develop its presence in a competitive market.

Pros:

• It’s cost efficient. Assurance services are formulaic in nature, making them cost-efficient. 
• It facilitates multi-service clients. While assurance services require a firm to be independent, if different teams are doing work, these clients can also become tax or advisory clients, building a stronger relationship. 
• It’s required. Audits are required for many different businesses and business transactions, making them a consistent source of income for a firm. 

Cons: 

• It comes with risk to the firm. When a firm executes an audit for a business, it creates a level of liability to the firm. If the audit was part of a loan process and that business defaults, the firm could be held liable to the extent that lenders or other entities relied on the accuracy of their findings. 
• It’s a transactional service. Like taxes, audits are not an ongoing service. They are executed annually or semi-annually, leaving little to no added value for the firm once they are completed.

Takeaway:Assurance services can be a beneficial addition for clients, but they do pose risks. When considering adding them, it’s important to understand the tradeoffs and make a decision that reflects the firm’s goals and needs.

Advisory

Advisory is usually added to established firms that are looking to expand. While these services require a great deal of maintenance, the added value can be worth it.

Pros:

• It creates loyal customers. Because advisory generally is an ongoing engagement rather than a one-time, transactional service, the primary benefit is the door it opens to creating long-term relationships with clients. Relationships create loyal customers, and loyal customers create a sustainable revenue source.
• It creates more-valuable clients. Advisory clients often become tax or assurance clients in other firm departments — increasing their overall value as clients.
• There’s added value throughout the process. Being a client’s advisor often puts the CPA in the driver’s seat to streamline processes for interacting with other departments in the firm. If a CPA is helping clients prepare statements throughout the year, there will be less clean up when it comes time to file or submit for an audit.

Cons:

• It can be expensive and time-consuming. Landing an advisory client can take a lot of time and effort. The high-touch nature of the relationship can strain a firm’s team if the adequate time and resources are not allocated to complete the assessment.

Takeaway: Advisory services may be more time-consuming than others, but they can provide your firm with sustainable growth over the years.

Looking Toward the Future

A key factor in planning a firm’s future is evaluating where it is today. Start with an analysis of the current operations and work from there to determine if and how to modify or expand services.

It’s important to target the efforts towards remaining cost effective and up to date with current technologies to stay competitive in the market and show clients the firm is committed to growth and moving forward together.

The accounting profession is vast when it comes to job choices — accountants can work in public practice or the private or corporate sector, for governmental/nonprofit organizations or in academia. But what motivates one to choose public over private or vice versa? Which aspects of each appeal to jobs seekers in order to prioritize one versus the other? Here are five considerations:

1. Exposure to different aspects of accounting. Public accounting can provide the opportunity to work across multiple industries. During my public accounting years, I realized that I like the manufacturing and distribution industry. I have had colleagues who realized that their niche was financial services. Private accounting can also provide some great exposure, but it will be limited to the industry in which the corporation operates and cyclical daily/monthly accounting tasks. Accounting skills obtained within a specific private industry can be transferrable.
2. Compensation. It’s no secret that, coming out of college, public accounting compensates more than private accounting. The raises are generally also better depending on how well you perform. Many graduates tend to prioritize a high-paying job so to provide some breathing room while addressing their debt-to-equity ratio. In private accounting, despite the starting salary being lower, there are future opportunities for significant base salary increase through promotion or a lateral move to another company within the same industry.
3. The level of experience. In public accounting, you can get experience being exposed to various industries (financial services, manufacturing and distribution, food, retirement plans etc.), running meetings, managing teams, cross-organization collaboration, mentorship (both upward and downward), presenting and becoming an expert within your respective field. In private accounting, one can delve deeply into the specific industry the company is in.
4. Work-life balance. Working in public accounting typically requires long hours, lots of travel and a challenging work-life balance as opposed to private accounting, where the hours are set and the increased work hours are seasonal (e.g., during month-end close, year-end close). I must add that, given the fact that we have been in the middle of a pandemic for more than two years, remote work is being offered by more and more businesses. That can help contribute to some sort of work-life balance.
5. Know your end goal. The answer to this question will determine your choice of a career in public or private accounting. If your goal is to make partner/director and become a leader of a business segment, then public accounting should be your choice. If your goal is to work for a company and contribute to the operation and success of that company, then private is for you. One can also combine both public and private by starting in one and switching. I wanted experience in technical accounting, managing, mentoring and participating in business meetings, so I chose to start in public accounting. I spent four years learning the craft and, after I had reached my goals, I transitioned into private where I combined my expertise acquired in manufacturing and distribution with internal audit.

There is no one-size-fits-all formula; choosing a career in public versus private accounting is based on many factors. The key determinants are to know yourself, what motivates you and what your short- and long-term goals are. Once you have enough self-awareness, you can make a choice. If you do not feel like you made the right choice, then reevaluate and make some adjustments. Most importantly, do not be afraid to fail, and do not embrace the easy way out; both are recipes for disaster in your professional and personal life. 

More employers have come to embrace diversity, equity and inclusion (DEI) initiatives as a way to improve workplace culture and demonstrate they value their employees as people, not just workers. A 2021 Harvard Business Review report found that 65 percent of U.S. executives say DEI is a high strategic priority, and organizations report multiple organizational benefits related to their DEI work, including increased employee engagement, innovation and success in recruitment and retention of employees. Additional studies suggest that taking the right actions to improve DEI can also lead to better financial outcomes for the organization.

There are many opportunities for employers to make small adjustments with big impact, particularly in employee benefits, programs and policies, and these adjustments may be easier and less expensive than you’d think. These include:

• Pathways to parenthood: family-forming benefits. Many health plans cover some form of fertility treatment, but the scope of treatment options may inadvertently exclude certain plan members and family structures, such as transgender individuals, same-sex couples or single individuals, as well as members in need of donor tissue and/or looking to preserve fertility. Making changes to the types of treatment covered by the plan can greatly expand access to these services and demonstrate your commitment to DEI.
• Healthcare access. People from some racial and ethnic minority groups continue to face multiple barriers to accessing healthcare, such as inadequate insurance, proximity to care, access to childcare or the ability to take time off from work, according to the CDC. Social determinants of health — conditions in the places where people live, learn, work, play and worship that affect a wide range of health risks and outcomes — have historically prevented certain groups from equal access to care. Taking steps to ensure employees have just and fair opportunities to be as healthy as possible may help reduce their financial burdens and help reduce overall health plan costs.
• Financial wellness. Benefits and programs to support the financial well-being of your employees signal that you value and support them and their needs. Helping employees address their financial concerns can also help increase engagement and reduce absenteeism and presenteeism.
• Retirement. A 2020 report from the Federal Reserve found that among middle-aged families (age 35 to 54), only 44 percent of Black families and 28 percent of Latinx families have at least one retirement account, compared to 65 percent of white families. Addressing the importance of retirement, presented in a meaningful way to employees, can help bolster retirement readiness. For example, use a custom-tailored approach to communicate financial wellness to different employee groups.
• Policies and communication. Expanding policy offerings and eligibility beyond what’s required by law is an easy and often low- or no-cost way to demonstrate your commitment to increasing DEI within your workplace. For example, adjust time-off policies to include a broader range of reasons so that more employees can better manage work/life responsibilities, and/or update existing employee handbooks, policies and communications with more gender-neutral language. Training your HR and benefits admin employees, as well as people managers, on how to address employee questions and concerns in an inclusive manner can also help foster more open communication and better understanding.

Work with your benefits providers and/or third-party administrator to determine what coverages, services and solutions may already be available to employees, or programs to enhance or expand. Employers may also choose to engage third-party solutions or service providers to address needs not currently being met.

Your business-owning clients have nightmares, and as an accounting professional who cares about them, you do, too. But here’s a nightmare scenario your business-owning client might not have considered: Let’s say they own a business they have spent decades building up, and the value of the business represents the majority of their wealth. No one else in the family works because the business provides the owner with a good enough income. The business has weathered the peaks and valleys of economic cycles; however, because of the pandemic, it is now struggling. 

If the business owner dies, staff may continue to operate the business on a day-to-day basis. But if word spreads that the owner is gone and clients with outstanding invoices don’t pay, the business will develop cash-flow problems. Meanwhile, if the family no longer has the owner’s paycheck coming in to pay household expenses and they have no interest in running the business, they may look for a quick sale. If the business is sold for a fraction of its value under ideal conditions, the family will suffer, and longtime employees will lose their jobs.

This scenario happened because there was no business succession plan in place. Here are some options for your business-owning client who needs a succession plan:

1. Sell the business to employees

Your client may decide to sell the business to their employees. This involves setting up an employee stock ownership plan (ESOP). The first step is setting up an ESOP trust. The company either contributes cash to the trust or borrows money from a bank. This cash is used to buy all or some of the shares of stock belonging to the owner. They have effectively sold the business (or a portion) to the ESOP trust. The business is valued independently. Assuming cash from the firm was used (and no debt), shares are allocated to company employees on a fair basis. These shares are part of the employee’s 401(k) plan. The employees’ ownership of the shares vests over time, and employees leaving the company are cashed out. This requires the ESOP trust to have cash on hand to buy back those shares from departing employees.

The owner can still be involved in running the business in this situation if they still retain some shares. The employee-owned company will have a board of directors that includes employee shareholders. There are significant tax advantages for the owner, company and employees. For example, if the employees’ shares are held within their 401(k) plans, they are in a tax-deferred environment.  

How accountants can add value: The business needs to be independently valued, the ESOP trust needs to be established, the funding and structure need to be determined, the trust needs to be administered and tax reporting needs to be addressed.

2. Merge the business

Your client may be planning to retire and needs an exit strategy. Perhaps another business owner in a similar or complimentary field knows your client, and they get along well. Your client may decide to merge the two businesses, taking on a percentage ownership of the newly combined business. Your client can still be active in the business, and both businesses are independently valued to arrive at a realistic value for the combined new entity. Responsibilities are defined, and the business owner must live up to his or her obligations.  

If the business owner dies, the family or the owner’s estate owns a stake in the combined company, which is an ongoing business. The expectation is the other partner(s) would buy them out.

How accountants can add value: The business needs to be valued, a good merger partner needs to be found and that business needs valuation, too. The terms of the merger agreement need to be set, and the responsibilities of each party need to be spelled out.

3. Buy key person insurance

What if your business owner has partners? What if the business doesn’t generate enough cash flow or have large enough reserves to easily buy out a partner? One solution is to buy a life insurance policy for each partner or owner. This is called key person insurance. These policies are owned by the business, and the business pays the premiums. When a death occurs, the policy pays the death benefit to the business, allowing the business to compensate the deceased partner’s estate for the value of their shares.

How accountants can add value: This is primarily an insurance purchase, yet the accountant is involved because of their fiduciary role. As an accountant, you can determine if this is the best and most cost-effective coverage and whether the policy should be cancelled.

4. Sell the business to a buyer

This takes advance planning. The business owner makes a conscious decision to sell, understanding they will be involved after the sale and paid over time. The business will need to be in good shape. A buyer must be found, either through a business broker or personal connections, and they will agree on terms. In many cases, the value of the business is in the customer base and the revenue they provide. The business owner may be involved for a few years, transitioning the clientele into the new business. Payments to the owner are made based on how well this has been accomplished.

There are instances in which a sale can happen more quickly and the owner can be out of the picture after the sale. If your client owns an oil well, for example, the value of the business is primarily the value of the oil underground. If your client owns a fast-food restaurant at a busy airport, they are doing a volume-based business, so the owner’s presence would have little effect on the business’s profitability. When there’s goodwill involved and the customer base needs to transition, the owner’s involvement and the payment period will be prolonged.

How accountants can add value: The business needs to be valued, a buyer needs to be found, the terms of the sale need to be negotiated, the payment schedule must be defined and the responsibilities of each party need to be spelled out.  

Your business-owning client needs a succession plan. The alternative can be a nightmare scenario.

This blog was originally published as a column on AccountingWEB and can be read in its entirety here.

Think of blockchain as a huge group of obsessed accountants who want to perfectly keep track of everything. The group has a million complicated rules they must follow to make sure each accountant records the same thing at the same time. After every accountant is satisfied, they all have an exact copy of each record — the records are filed in a see-through drawer with a combination. The combination to the drawer is scrambled. The scrambled combination is put into the next drawer along with the new records from the second day. Since the combination to the first drawer was scrambled, it will never be able to open that drawer again. The same thing happens with the second drawer — the combination is scrambled, put into the third drawer and so on. There are an unlimited number of drawers in each file cabinet. Because the drawers are transparent, clients can view what was done. For instance, Joe Client can view the file cabinet and see when his bank reconciliation was done.

In reality, a blockchain is an intricate technology designed to securely record transactions. There are various blockchain platforms running different systems. All blockchains work with specialized machines called nodes, which are connected to each other and work together exchanging, storing and securing information. Software specific to the blockchain network runs on the nodes. 

Types of Blockchains

There are public and private blockchains, with benefits to both. Public blockchains are available to anyone and provide privacy to participants. Bitcoin and Ethereum are examples of public blockchains. Bitcoin uses a mining and proof of work (PoW) system to validate cryptocurrency transactions, while Ethereum uses a mining and proof of stake (PoS) system.

In a private blockchain, every user is known and has specific permissions such as viewing, entering and approving data. Walmart uses a private blockchain system which allows suppliers to add certificates of authenticity to the network making it easier for the company to trace the origin of a product. 

While blockchain technology is very complex, fortunately users do not have to know how the blockchain works to participate in it. Similar to Venmo and PayPal, the user can transfer money to someone without knowing what happens in the background.    

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.

Bitcoin, the oldest and most popular cryptocurrency created in 2008, paved the way for thousands of different altcoins available on today’s market. Cryptocurrency quickly gained popularity as transactions could be performed quickly with no involvement of an intermediary to facilitate these transactions. Coupled with anonymity, transparency, worldwide use and access, crypto became a popular choice for remitting and receiving payments.

Bitcoin’s first large price increase occurred in 2010; it jumped from less than a penny to eight cents. Celebrity endorsements inspired the world to jump into investing and trading cryptocurrency. The value popularity of cryptocurrency reached a high as Bitcoin broke $66,990.90 a coin on Nov.10, 2021. Crypto’s journey into the mainstream markets hit a milestone in October of 2021, when the first exchange-traded fund linked to bitcoin futures made its stock market debut; this allowed anyone to buy and sell a bitcoin-backed financial product on the stock market. ProShares, the Maryland-based company behind the ETF, saw its product top $1 billion in trading volume on its first day. However, what many have failed to recognize are the tax implications.

Factoring in Taxes

A required question on an individual’s 2020 1040 Schedule 1 was “At any time during [the tax year], did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?” This very question alluded to the IRS’s increased scrutiny of cryptocurrency transactions as its popularity grew. A taxable event occurs when a taxpayer trades cryptocurrency to fiat currency like the U.S. dollar, trades one cryptocurrency for another cryptocurrency, uses cryptocurrency to pay for goods and services or earns crypto as income.

Capital gains will be realized when the crypto received is sold. The gain or loss will be the difference between the adjusted basis in the virtual currency and the fair market value (FMV) of the amount received in virtual currency. Because wash sale rules currently do not apply to crypto, all losses can be used to offset gains. If one regularly trades cryptocurrency, it may be beneficial to make a mark-to-market election, given the complexity and multitude of trades.

Income generated from staking or mining crypto should be recognized as ordinary income. Simply put, mining crypto is the process of solving complex mathematical problems and using computing power to add new transactions to the blockchain. Despite mining income being subject to self-employment tax, the income is considered ordinary in nature and, therefore, it can be reported on schedule C where expenses may then be deducted. Staking crypto, on the other hand, is similar to keeping money in the bank and earning interest.

In 2019 alone, the IRS issued more than 10,000 warning and action letters to non-compliant crypto investors. Although crypto exchanges may not issue 1099s to investors and traders, it is the individual’s responsibility to properly report these transactions on their tax return. Don’t leave it to Uncle Sam to determine your liability!

Search engine optimization (SEO) is the organic way that people find your company using a search engine, such as Google or Bing. Some of the more common U.S. accounting terms, according to Google’s keyword ranking tool for June 2019 through May 2020 include the following: accounting, CPA, accountant, bookkeeper, certified management accountant, CPA near me, tax preparation near me, QuickBooks Intuit and tax preparers.

By using common terms on your website, the site competes with thousands of others for first-page ranking. It’s more effective to create the niche result you want to be found for rather than ask people to sift through the noise to find you.

What can you do?

Here are five SEO strategies you can begin using today to help people find your website tomorrow:

1. Complete your free Google and Bing local business listing pages. Be sure to complete as many fields as possible, including your services and the industries you serve. Also include an interesting photo of your location or office to help it stand out. Remember to make the image file name your brand name and location, e.g., MyCPAFirm_NYC.jpg.
2. Conduct keyword research to incorporate niche, industry and service line keywords into your website content, including headlines, URLs, image file names and text. See the bonus tip below.
3. Work with an SEO professional and your website developer to ensure keywords are used throughout your site, including page URLs, description and keyword meta tag fields, image alt tags and H1 and H2 header tags. If you’re using WordPress, some effective SEO plugins include All In One SEO, SEO Press, Rank Math and WP Rocket. Find additional SEO tools in this post by WP Beginner.
4. Contact your website and domain hosting providers to add an SSL certificate to the site. Creative Minds states, “If your site is being used to collect any sort of information on your visitors (name, address, credit card information, etc.), you’ll want to make sure you’re using SSL. Without it, your customers are at risk of having their information compromised.” Sites without an SSL certificate also have a hard time ranking on Google Search.
5. Create monthly content themes that align with your business goals. Then post focused content onto your website. You can find a sample content calendar here.

Bonus Tip

When it comes to keyword ranking, there are a few things to keep in mind, including:

• Create a shortlist (three to five phrases) of the main keywords you want to rank for all the time.
• Identify your geographic region of focus. Interestingly, location does influence some top search terms. For example, “small business bookkeeping” may rank high in one location but not in another.
• Consider common misspellings, such as “acountant,” acounting” or “bookeeping.”

Quick-Hit SEO

The above items take some time to complete. What can you do now that will have some impact? Here are some tips from Backlinko:

• Check your site load time. Use Google’s Page Speed Insights, which tells you how to improve your page’s load time.
• Link to great content on your site and other sites within existing posts or pages.
• Repurpose content into different formats. For example, a blog list could become a video or infographic.
• Leverage the firm’s brand name in the page’s title tag, e.g., 5 SEO Strategies to Get Found Online | NJCPA.

How to Find Keywords

Below are several free keyword planning tools to find the keyword phrases most people use for your skills, services or products.

• Google Trends
• Keyword Generator
• Keyword Sheeter
• Answer the Public
• Keyworddit
• Google Search Console
• Questiondb
• Keyword Planner

Now that you have these SEO tips, it’s time to revisit the most prominent pages on your site and ensure the right keywords are in place. Once it’s complete, remember to resubmit the website to the search engines. That step is free. Motley Fool outlines how to tackle that simple step.

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.

October is National Cybersecurity Awareness Month. The FBI’s Internet Crime Report from March 2021 shows that the cost of cybercrimes reached $2.7 billion in 2020 alone. The top three crimes reported were phishing scams, non-payment/non-delivery scams and extortion. Victims lost the most money to business email compromise scams, romance and confidence schemes, and investment fraud.

Notably, 2020 also saw the emergence of scams exploiting the COVID-19 pandemic. The Internet Crime Complaint Center (IC3) received more than 28,500 complaints related to COVID-19, with fraudsters targeting both businesses and individuals.

Cyberattack Costs

The following are some of the most obvious costs and those that can still have a big impact but remain hidden:

Explicit (visible) costs:

• Technical investigation
• Customer breach notification
• Post-breach customer protection
• Regulatory compliance
• Attorney fees and litigation
• Improving cybersecurity going forward

Hidden costs:

• Increase in insurance premium, raising debt
• Operational disruption/destruction impact
• Loss of contract revenue
• Impact on trade name
• Loss of intellectual property stolen
• Loss of customer trust and relationship
• National security/impact to the economy

Source: Deloitte Webinar -Quantifying Cyber Risk to Chart a More Secure Future

Small Business Impact

Information technology and high-speed Internet are great enablers of small business success, but with those benefits comes the need to guard against growing cyber threats. As larger companies take steps to secure their systems, less-secure small businesses are easier targets for cyber criminals. According to a recent Small Business Administration (SBA) survey, 88 percent of small business owners felt their business was vulnerable to a cyberattack. Yet many businesses can’t afford professional IT solutions, have limited time to devote to cybersecurity or don’t know where to begin. The National Cyber Security Alliance reports that 60 percent of small and midsize businesses that face a severe cyberattack go out of business within six months.

CPAs can assist in keeping clients’ data safe. Implementing a security-first culture helps to keep a company secure. Here are some tips on how to keep small businesses safe from cyberattacks:

• Learn how to protect your business by paying attention to cybersecurity training and tools.
• Realize the threats that companies should expect in the hybrid working mode and how to prevent risks.
• Understand how the importance of security has changed since COVID-19.
• Recognize the most important steps to take when integrating security into a company’s DNA.
• Know how Secure Software Development Lifecycle (SDLC) is being implemented by security experts in different industries and companies.

Avoiding Threats

Smart cybersecurity has a promising role to play in identifying, filtering, remediating and neutralizing cyber threats. By harnessing the smart automated enterprise tools such as artificial intelligence and machine learning, enterprises will be more readily able to meet future challenges.

A cybersecurity risk assessment can identify where a business is vulnerable and help clients create a plan of action — which should include user training, guidance on securing email platforms and advice on protecting the business’s information assets.

Best Practices

The following best practices can be followed by both CPAs in their own organizations and at their small business clients:
 

• Train employees on emails (a leading cause of data breaches for small businesses):
  
  • Spot a phishing email
  • Use good browsing practices
  • Avoid suspicious downloads
  • Create strong passwords
  • Protect sensitive customer and vendor information
  • Maintain good cyber hygiene
• Use antivirus/antispyware software and keep it updated
• Secure your networks
• Use strong passwords
• Implement multi-factor authentication
• Protect sensitive data by:
  • Backing up data
  • Securing payment processing
  • Controlling physical access

Additional Resources and Tools

• Consider contracting for dedicated IT support.
• The Federal Communications Commission (FCC) offers a cybersecurity planning tool to help you build a strategy based on your unique business needs.
• The Department of Homeland Security’s (DHS) Cyber Resilience Review (CRR) is a non-technical assessment to evaluate operational resilience and cybersecurity practices. You can either do the assessment yourself, or request a facilitated assessment by DHS cybersecurity professionals.
• DHS offers cyber hygiene vulnerability scanning free for small businesses. This service can help secure your internet-facing systems from weak configuration and known vulnerabilities. You will receive a weekly report for your action.
• Developed by the DHS’ Cybersecurity and Infrastructure Agency (CISA), the Supply Chain Risk Management Toolkit can be used to help shield businesses’ information and communications technology from sophisticated supply chain attacks.

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.

We live in a world of short attention spans, social media, 24-hour news and two-minute YouTube clips. Novelties, fads and marketing gimmicks can grab someone’s attention for a moment, but keeping their attention requires substance — it requires true thought leadership.

As a CPA, your clients deserve and are seeking your expertise and opinions. They need a trusted source of information that helps them cut through the noise of social media and gimmicks. They need you — for help in understanding the current tax landscape, where there are opportunities and pitfalls, and since the current environment is shifting towards a tax planning model. Clients are also getting inundated with information. 

Thought leadership, therefore, is all about having ideas and not being afraid to share them. It is about seeing beyond the current uncertainty and finding ways to communicate perspectives and points of view so that clients and others can make better financial decisions. Take politics, for example. After the November elections, there was a lot of noise, distraction and some disappointment that clouded decisions for months. As a trusted advisor, CPAs needed to help their clients and organizations stay focused on what they can control. Regardless of who was (and who wasn’t) elected President, clients should understand how the outcome may affect their individual situation and what you are doing as their most trusted advisor to provide what-if planning.

Your Role

CPAs need to be prepared for what may come and to show clients opportunities that fit their goals. The truth is, those who act on what they can control and influence, will find the next few years ripe with financial and estate and tax planning opportunities. Those that remain mired in the uncontrollable will miss out.

For high-net worth clients, estate taxes can be a place to help mitigate their tax exposure. Estate tax is a voluntary tax. As thought leaders we can find simple ways to motivate our clients to take advantage of tax planning opportunities. The planning clients do today can save them in the future. Motivating clients and moving past their concerns is a key role a thought leader plays in their clients’ lives. 

Here are six simple steps to thought leadership:

1. Find a topic and own it.
2. Stay informed: Read. Read. Read.
3. As you learn something, share it.
4. Be a thought originator and a thought collector: Repost related content from other sources on this topic.
5. Stay brief: Less than 1,000 words.
6. Stay top of mind: Be their thought leader today and reap the rewards tomorrow.

Your clients need this type of proactive thought leadership. Control what you can control and influence and continue to be both a trusted advisor and a true thought leader.

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.

In delivering organizational visibility and mission critical data on a single platform while supporting collaboration across remote workforces, enterprise resource planning (ERP) platforms help companies make quick decisions in today’s unpredictable business environment. By putting finance and accounting, customer service, procurement, inventory, supply chain management, warehouse management and order fulfillment on a single platform, ERPs unify core business operations, improve internal controls and enhance visibility into organizational performance, when compared to entry-level accounting software, spreadsheets and other point solutions. Thus, ERPs are a must for a growing business.

But although many companies may have shifted to ERPs from their more rudimentary accounting software, few have harnessed the power of cloud ERP systems. Organizations using on-premise ERP systems are paying higher annual software maintenance costs and in-house IT salaries than competitors using cloud ERP solutions — and most don’t even have access to the latest features and functionalities.

Additionally, on-premise ERPs suffer from sluggish system performance and a lack of effective collaboration tools, which leads to an overall decline in productivity. Lack of integrated solutions and difficulty penetrating departmental data silos make it harder to know what is happening in the business when companies need visibility more. Combined with added demands on IT and demand for remote access to a variety of systems, the network capacity of these organizations is strained, and new security concerns are introduced.

Cloud ERP overcomes these issues by allowing remote users to access the functionality and data anywhere with an internet connection. A cloud ERP system can help transform companies into resilient organizations that can weather any storm. Here are some reasons why cloud ERP works:

• Enables remote workforce management and collaboration. Accounting (such as closing the books) is collaborative work. Using basic accounting software or an outdated ERP system and its standard approach isn’t feasible with the entire accounting team working from home. Using cloud ERP, the accounting team can review the data, make changes and close the books remotely without having to be in the same physical location.
• Helps comply with accounting standards and regulatory requirements. Complying with changing rules and regulations has pushed many organizations to reconsider processes typically handled with spreadsheets. Cloud ERPs receive regular feature and capability updates that are automatically passed on to users.
• Gives all organizational departments a unified and accurate picture of the business. It provides accurate, real-time data that helps teams collaborate more effectively, leading to better-informed decisions, increased revenue and happier customers.
• Drives quick reaction times. As opposed to IT or finance teams gathering and producing reports pulling data from disparate systems, which are often outdated by the time leadership sees them, Cloud ERPs feature role-based dashboards that give employees immediate access to the data they need to do their jobs and the ability to drill down for further analysis.
• Reduces operational risk. Cloud ERPs help limit these risks by embedding approval workflows into procurement, accounts payable and other financial processes, as well as by controlling access to system features and data based on user roles and individual permissions.
• Tracks unit economics, customer and project profitability. Due to the visibility gaps impacting margins that exist in on-premise ERP systems, regularly evaluating revenue and cost on a per-unit basis becomes difficult unlike in cloud ERP.
• Helps companies scale and adapt. As businesses expand and add new services or products, they quickly outgrow their basic accounting solutions. With growing needs for scalability, visibility and adaptability, the need for a more robust ERP grows exponentially.

Even with all these benefits and more, some businesses running on-premise ERPs are reluctant to undertake upgrades because of disruptions caused by broken integrations and customizations being overwritten. There are clearly many measured benefits to taking such action, and, overall, the benefits outweigh the short-term costs.

CPAs’ roles are evolving from being historians and compliance police into tactical advisors who interpret stories hidden in data. As Big Data gets bigger, data visualization is becoming increasingly more important for CPAs, who need to understand large data sets and make informed decisions. 

Data visualization should be user friendly, have a purpose, provide value and use reliable data. When implementing a data visualization project, take the following considerations into account:

• Start with a plan and identify the users. A plan should define the purpose of using data visualization and take the users’ skills and time into consideration. 
• Ask how, when, what and why when beginning to observe patterns. For example, how do cost of sales change over time? When do they increase or decrease? Why does this happen and what does it mean? Using this process, the story forms, and then data visualization conveys the story to users. 
• Use bar and line charts because these methods easily show data differences. Pie charts are the least effective way to present data — because with more than five slices, the visualization becomes useless. It is also difficult to compare slices in one pie chart to slices in another pie chart.

Some common free data visualization apps are Google Charts and Microsoft Power BI. Both can manipulate data from multiple sources and make graphs quickly, but each comes with its own performance problems. Some popular paid apps are Tableau and Qlik Sense. These apps can present complex data in simple ways and are good for financial reporting. However, these apps require some technical knowledge and can be slow.

These are just a few of many data visualization apps available. When choosing an app, it’s best to focus on a pleasing user experience, an easy-to-read dashboard, simple visuals and contrasting colors. Also, consider performance before complexity, because sometimes less can be more. 

In March 2021, the Employee Retention Credit (ERC) was extended through Dec. 31, 2021, and expanded as part of the American Rescue Plan Act of 2021. But there are many nuances and complexities CPAs need to be aware of to fully educate their clients.

Here are 10 misunderstandings about the ERC to keep in mind:

1. My client can’t claim ERC if they’ve already claimed Paycheck Protection Program (PPP) loans or gotten their PPP loans forgiven. Now you can claim both! Congress, in the Consolidated Appropriations Act (CAA) of 2021, removed the limitation on only claiming one or the other. PPP will only account for 2.5 times monthly payroll expenses and is meant to be spread out over six months. This leaves plenty of uncovered wage expenses for claiming the ERC.
2. My client’s business did not have a drop in gross receipts of 50 percent or more. The CAA has changed the qualifications so that a reduction of 20 percent now qualifies. BUT remember there is also another way to qualify for the ERC — if a business has been subject to a partial or full suspension due to a government order... see the next point.
3. My client’s business was not shut down during the pandemic. Even a partial suspension order by the government (federal, state or local) of a client’s business could potentially qualify. For instance, a partial shutdown; a disruption in their business; inability to access equipment; having limited capacity; shutdowns of their supply chain or vendors; reduction in services offered; reduction of hours to accommodate sanitation; shut down of some locations and not others; and shutdowns of some members of a business are all scenarios that still potentially qualify for the ERC. The key considerations are: due to the government-ordered partial (or full) suspension, is/was your client’s business not able to continue its activities in a comparable manner, and did that result in a more-than-nominal impact on their business operations? Remember, the partial or full suspension is an alternative way to qualify for the ERC, separate from the reduction in gross receipts test.
4. My client’s company was deemed an essential business, so they do not qualify because of business suspension. Even if your client’s business is deemed essential, an impact or change in their business may still qualify them. For example, even if they were open but their vendors were closed down or they couldn’t go to their client’s job site, they may still qualify. Or, alternatively, if part of their business was considered non- essential and was impacted by a government-ordered suspension, they may also qualify. The scenarios discussed above in item 3 could apply here as well.
5. My client’s company has grown during quarantine. The ERC isn’t something they should take. That’s great news! But even if your client’s company has grown during quarantine, there are expenses that may qualify if they experienced a full or partial suspension.
6. Sales have rebounded for my client in Q1 of 2021; they cannot qualify for this credit. With the introduction of the CAA, you have the option to look at one quarter prior to determine qualification. This means we can determine eligibility based on lost revenue in 2020. Also, if your client was subject to a full or partial suspension, they may qualify regardless.
7. My client was in losses, or they do not have any tax liability. This is a refundable credit. In practice, this means that any credit overage above tax liability is sent to the taxpayer/business owner as a refund.
8. My client’s company has grown to more than 500 employees, so they are not eligible for the ERC. The employee count restriction is based on full-time equivalent (FTE) employees, which is a more involved calculation than just counting everyone in the office. We helped a business with 640 employees, and the FTE calculation put them at under 500. Furthermore, if your client paid any employees to NOT work, or to work less than the hours for which they were paid, then the employee count restriction would not apply for those employees.
9. My client is a charity and the ERC is only for businesses. The ERC also may provide significant benefit to charities — churches, nonprofit hospitals, museums, etc. Charities can be particularly good candidates.
10. We don’t need to document everything. There are still many tax advisors who think that they can just create their own simple form. They check a few boxes, provide a few sentence explanation and expect the IRS to hand over thousands and thousands of dollars on a silver platter and then play audit lottery? Guess again. To avoid headaches and heartaches down the road, clients need to properly and fully document how their business qualifies for the ERC.

Professors can shape a student’s experiences, influencing whether students take a course or pursue a career because the person at the front of the classroom looks like them. The first Black CPA Ph.D.s have played an important role in attracting generations of future Black CPAs.

Having diversity in the front of the classroom benefits all students, especially the students of color who may not be used to seeing people like themselves in that position, said Mark Dawkins, CPA, Ph.D., professor of accounting at the University of North Florida and the first Black CPA Ph.D. president-elect of the American Accounting Association.

Among other things, the person teaching the class can have a significant impact on whether students decide to try a course in that subject — and ultimately make it a career — because they see it is being taught by someone who likely embodies similar life experiences. For that reason, the first Black CPA Ph.D.s, and the professors they mentored or inspired, have played an important role in attracting generations of ambitious Black students to the profession.

Overcoming Barriers

The earliest Black people to earn Ph.D.s in accounting faced numerous barriers. In fact, the first five “had no chance at full-time positions in majority-white institutions” when they got their start in the 1950s and 1960s, according to Theresa A. Hammond, Ph.D., accounting professor at San Francisco State University’s Lam Family College of Business and author of A White-Collar Profession: African American Certified Public Accountants Since 1921.

That was the case for William Louis Campfield (1912-1993), who in 1951 became the first Black CPA Ph.D. He was also the first Black CPA in North Carolina and the first Black person inducted into the Beta Alpha Psi organization. His parents, graduates of the Tuskegee Institute and students of Booker T. Washington, were teachers, according to research by Dereck Barr-Pulliam, CPA, Ph.D., assistant professor of accountancy at the University of Louisville. Campfield and his eight siblings attended a school on the Institute’s campus and then he was sent to live with relatives in Pittsburgh so he could attend a college preparatory high school. He enrolled in New York University, supporting himself by working at a bowling alley, then returned to teach at Tuskegee in 1933.

When it hired Campfield in 1951, the University of San Francisco had the distinction of being the first majority-white institution in the country to hire a Black Ph.D. in accounting, according to Hammond. However, he was hired as a lecturer, not a professor, even though no other faculty member, including the dean, had a Ph.D. A year later, Campfield returned to working in accounting in a government position and created a practitioner-in-residence program that allowed him and numerous other government accountants to take leave and teach accounting. He retired in 1972 as associate director of what was then called the U.S. General Accounting Office, now known as the Government Accountability Office, and in 2019 became the first Black accountant to be inducted (posthumously) into the American Accounting Association’s Hall of Fame.

Succeeding Through Persistence

Another pioneer, Larzette Hale (1920-2015), showed similar determination. Sent to an orphanage at age 11 after her father’s death and when her mother could no longer care for her, she learned bookkeeping when the business office’s accountant took an interest in her. She went on to study business in college, where an accounting professor became her mentor. “Thanks to her, I fell in love with balancing the books and knew I wanted to study accounting in college,” Hale told the Journal of Accountancy in 2009.

She faced a number of forms of discrimination. Although a resident of Oklahoma, Hale was barred from attending its two state universities because of her race, so she attended Langston University, the state’s only historically Black college. The state of Oklahoma would later pay her tuition to attend the University of Wisconsin for her master’s degree, according to Hammond. While teaching at Clark College in Atlanta, she decided to get her CPA at the urging of her mentor, Jesse Blayton, an influential early Black accounting professor. When Hale took the CPA Exam, she was asked to sit in the back of the room and wasn’t allowed to use the lunchroom. In 1955, she became the nation’s first female Black CPA Ph.D. She ran a solo practice for a decade but was drawn to teaching. Hale ultimately became the head of Utah State University’s school of accountancy and also taught at Langston and Brigham Young. She was appointed a regent of the Utah Board of Higher Education, the first Black person in that role.  

A First for a New Generation

Dawkins, who met Hale early in his career, set out to follow the lead of these early pioneers. “There are a lot of prominent and impactful faculty of color who may not have had an opportunity to serve in this role, so I stand on the shoulders of giants,” he said. He said he’s grateful for the chance to highlight issues and concerns related to diversity at a time when attention is being focused on racial injustice and economic inequity.

Dawkins promotes the advancement of future Black accountants through his involvement in the PhD Project, which aims to diversify corporate America by increasing the number of business professors from underrepresented minority communities and attract more minority students to college business courses. He was in graduate school before the PhD Project started, but he began attending the project’s annual conference as soon as it began. Currently, he co-mentors four junior faculty members involved in the project, discussing questions they may have about research or teaching and helping them build the success they need to gain tenure. When the project began, Dawkins recalled that there were so few faculty of color that they would refer to each other by number based on the order in which they had become Ph.D.s. “Today, we have 1,500,” he said.

Expanding Students’ Knowledge Base

To keep the momentum going, efforts are underway to nurture a new generation of diverse CPA Ph.D.s and provide them with the learning and tools they need to succeed. For example, Dawkins served on a task force for CPA Evolution, a joint initiative of the National Association of State Boards of Accountancy and the AICPA to transform the CPA licensure model to encompass the rapidly changing skills and competencies that accountants need now and in the future. That will include changing what is being taught. “I believe accounting schools do a good job of giving students the basic toolkit they need,” he said. “But we will need a combination of schools better preparing students and firms enhancing employee training.” Speaking of his work with the learning process and the PhD Project, Dawkins concluded, “for me, it’s a lifelong commitment.”

This blog post was originally published by the Illinois CPA Society (ICPAS) and was reprinted with permission. The Black CPA Centennial is a yearlong effort to honor, celebrate and build upon the progress Black CPAs have made in shaping the accounting profession. The celebration is a collaborative effort of the AICPA, Diverse Organization of Firms, Illinois CPA Society, National Association of Black Accountants and National Society of Black CPAs.

When cash flow problems emerge, the business owner probably didn’t accurately estimate anticipated revenue versus anticipated expenses. The estimate of startup costs was too conservative. Clients aren’t paying as quickly as they hoped or sales didn’t follow the anticipated trajectory.

There are several reasons business clients run into cash flow problems or just simply need more money in a hurry. It’s better to get in front of this problem sooner than later and as their accountant, you need to be able to ask the tough questions. Business owners, especially startups, can be excessively optimistic and not properly plan for the aforementioned scenarios. They are simply convinced their idea will take off.

Here are seven questions to ask clients in order to better understand their finance needs: 

1. Why is your business going to succeed? Answering this question requires a robust business plan. Ask your client the following questions:
2. How much money will you (realistically) need? This should be followed by “How did you arrive at that number?” You want them to walk you through their business plan. They often need exponentially more money as the business ramps up operations. Where will this money come from? Is it from product sales? How have they matched projected sales revenue with the more predictable outflow for expenses? Remind them of the timeless advice people are given when going on vacation: “Bring twice as much money as you think you will need.” That was back when people carried cash. Today the advice would be “Be prepared to spend twice as much as you anticipated in out-of-pocket costs.”
3. Are you prepared for contingencies? How will they be addressed? When you embark on a construction project such as building a new home, the architect typically builds in a cushion of 10 percent (or more) into the project budget. Why? Because they don’t know what problems they will encounter along the way. If construction is halted, rent still must be paid on equipment. The mortgage needs to be paid. When renovating an older home, contractors usually protect themselves by saying: “We don’t know what we'll find when we open up the walls.” Assume everything will not go according to plan. What cushion has the business owner built in?
4. Are you borrowing or taking on investors who will own equity? The answer might be “yes” to both options. If the client is borrowing, they'll need that robust business plan that will persuade the bank their venture is a good risk. If they are bringing on investors who will pay to own a slice of the equity, they need to be confident the projected return on investment is sufficient to balance the risk they are accepting. Their investment will likely be illiquid for a long time. What can they expect as a return on investment? When should they be starting to see a return? Regardless, if it’s a loan or equity, the client will need that good business plan.
5. How much equity are you prepared to give away? It’s been said early money is the most expensive money. If investors are willing to put money into a startup, they are buying into a vision and the business owner who promises to deliver. They are taking a major risk. They want to be adequately compensated. The client wants to retain control of their business, but they must be prepared to part with enough equity to make the risk worthwhile to the investor.
6. How much of your own money are you putting at risk? How much are immediate family members investing in the business? The client needs to understand that if a bank lends them money, they want to be lending alongside the client. They want them to have “skin in the game.” If a business runs into serious financial trouble, lenders have standing ahead of equity investors. They want the client to have a substantial amount of their own money at risk, so that they are motivated to see their business succeed.
7. How much are you prepared to pay to borrow money? The return on equity must far exceed the cost of borrowing money. Ask your client to imagine the following scenario: You are confident your business can return 20 percent, yet the only lender you can find wants 35 percent interest and your personal guarantee of the loan. In this scenario, the client shouldn’t be starting or expanding their business at this time. They need to bear in mind that there are costs besides the posted interest rate. Origination fees are a good example. The interest rate will likely be variable, which is dangerous in a rising interest rate environment.

Ideas can look great on paper. Things get complicated once loans are negotiated and your client signs documents. They need to be aware of the risks they are assuming along with costs and consequences.

This blog was originally published as a column on AccountingWeb and can be read in its entirety here.

The COVID-19 pandemic forced thousands of organizations around the world to become entirely remote seemingly overnight. Many businesses had some experience with mobility and remote access to work from home, but few, if any, were equipped to operate 100-percent remote. Cyber criminals and opportunistic attackers wasted no time targeting insecure home networks and household smart devices like doorbells, thermostats and yes, even fish tanks.

From credential theft, to email phishing scams to social engineering, cybercriminals sought to exploit any and every aspect of the remote transition of our workforce. Cyber criminals don’t discriminate. They feverishly work to find any and all security vulnerabilities that will allow them to access to the networks of large, small, global, regional and local businesses.

Small and Midsize Businesses

These mounting cybersecurity threats are particularly troublesome for small and midsize businesses (SMB). Even before the pandemic, SMBs and their chief information security officers (CISOs), if they had one, faced challenges when it came to limited budgets, complex cyber solution and services offerings, and the challenges and costs of hiring skilled staff. As the pandemic continues to take its toll on the broader economy, tighter budgets, higher prices and greater risks have increased the complexity and cost of securing your business. As SMBs find their footing in the post-quarantine world, they must embrace the critical importance of cybersecurity and scale appropriately.

The "2021 Survey of CISOs with Small Security Teams," from Cynet finds that companies with small security teams are facing a number of unique challenges, placing these organizations at greater risk than their larger enterprise counterparts. Here are some key findings that SMBs and their CPAs should be aware of:

• 63 percent of these SMBs’ CISOs feel their risk of attack is higher compared to enterprises, despite enterprises having a larger target on their backs.
• 57 percent of companies indicated they do not have enough skill and experience to protect against cyberattacks.
• Almost all small security teams are looking to outsource security mitigation to an external provider with over half focused on outsourcing managed detection and response (MDR).

SMBs can and should increase their cybersecurity resilience to boost their chances of success. A crucial first step is for owners of SMBs to lead by example and pay attention to their employees’ online habits. They can demonstrate good cyber hygiene and educate their employees.

Here are some considerations:

• Identify business-critical assets and data to prioritize their protection.
• Be proactive, rather than reactive, when protecting against cyberattacks.
• Access online resources to boost cybersecurity awareness and education. For example, the Small Business Administration offers free access to planning tools, business assessments, cyber hygiene vulnerability scanning and best practices on their website.