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Emotional rollercoaster: The psychology of starting a small firm or business

Post author By FFC
Post date February 19, 2019

Emotional rollercoaster: The psychology of starting a small firm or business

Do you feel destiny may be calling you to something? Perhaps you’re thinking about a long overdue job change. Maybe you’re being tapped for partner or you’re exploring starting that firm you’ve always wanted to build from the ground up. As you’d expect, starting a firm or any business comes with many intricacies. Some are big details, like funding and office space, and building the right client base. Other details can wait, yet are still important, like setting up utilities, registering with your federal, state and local governments and regulatory boards (if applicable) and marketing your business.

One thing you might not have considered as you think about branching out is your own mindset. What’s keeping you from moving forward? There’s a psychology to owning your own firm. Here, we explore emotions, from fear and uncertainty to courage and enthusiasm.

Fear and anxiety

You’re not alone in the fear of starting a business; it’s normal and will be a factor in certain aspects of life. In fact, some people fear starting a business more than skydiving. Acknowledging fear is one way to neutralize it. What are you afraid of? Are you anxious your firm won’t grow or be successful? Are you worried about how you’ll cover your bills as you start up? You’ll want to begin by acting to diminish negativity and focus on the positive. When you’re in action, you’ll find you’re not as anxious. You can point to specific steps you’re taking when resurfacing fear threatens to distract you.

Another great first step is conducting a SWOT (strengths, weaknesses, opportunities and threats) analysis to help you identify your issues and prioritize an action plan. Initial steps may be to secure a line of credit, develop a business plan, identify your ideal target market and more. Taking an honest look at your SWOT and identifying your first steps may help put some of your fears to rest, or at least ease them by mapping your path forward.

Courage

Courage is being afraid and acting anyway. We’re all afraid of something. Leaving your current firm or job can be a hard decision, especially in the face of a promotion or partner opportunity. If you come to this crossroad, leverage the strengths you listed as part of your SWOT analysis. Tap into your network. Talk and listen to your peers and bounce ideas off them. Ultimately, it’s your decision and all about finding the right fit. If you do decide to leave, leave with integrity. Be sure to understand your obligations under the non-compete and/or non-solicitation clause in any agreement you signed.

Uncertainty

We all seek validation, but there’s so much uncertainty when it comes to managing your business. Ask yourself, what’s your intention in your business endeavor, what’s driving you and what are you committed to? Perhaps you seek the ability to be your own boss, have more flexibility and choose your clients. Don’t underestimate the power of your intention. You can’t expect to be certain about your new venture, but you can certainly devise strategies and follow through on your intention.

Enthusiasm

So, after deep reflection, you decide to branch out on your own. Congratulations! Now, excitement starts to settle in. As you begin your journey, this checklist might help as you start your CPA firm. Another important first step is to make sure you create a vision for your firm’s culture. What do you want your staff and clients to feel when they work with your firm? By creating a clear and strong culture up front, you’ll be able to find and retain the right staff and clients. Spread positivity, and if your staff are pursuing the CPA, support them along the way.

Whether you’re thinking about starting your own firm, you’ve been tapped for partner or you’re a veteran small firm owner, the AICPA has a dedicated resource page for small CPA firms and sole practitioners. This site features technical guidance to help you manage your practice and plan for your firm’s future.

Perhaps 2019 is the year you’ll pursue your dream of owning a firm or business. I wish you much success and happiness in whatever your career goals may be in the year ahead.

The AICPA’s Private Companies Practice Section has many tools for firm practice management like succession planning and merger and acquisition resources.

Jennifer Lee Wilson, is co-founder and partner of ConvergenceCoaching, LLC, a national leadership and management consulting firm dedicated to helping leaders achieve success.

Staying in love with your significant other – who’s also your business partner

Post author By FFC
Post date February 14, 2019

Staying in love with your significant other – who’s also your business partner

It’s Valentine’s Day, and you deserve a virtual high-five for being extra thoughtful this year. You put together a romantic dinner with candles, music, their favorite dessert – the whole nine yards.

And then you hear the love of your life, your main squeeze, yell from the shared home office, “Hey! Did you remember to pay the contractor?” Well, so much for that intimate evening sans work.

Turning your romantic partner into a business partner might sound like a struggle, especially when it comes to setting boundaries. However, with the right amount of agreed-upon expectations from the start, coupled with consistent, proactive and honest communication along the way, it is possible to succeed in both love and business.

David Almonte, CPA, CGMA and member of the AICPA’s Financial Literacy Commission provides these three tips to help you do just that.

Understand each other’s business styles.

You know their love language, but that may not be their business style. Maybe they’re used to working at a large company that had a long and intense approval process, while you prefer the flexibility of a start-up culture. There are a variety of assessments that can help break down these preferences and personality differences so you can develop a plan to work well together. Put aside some time to take tests like CliftonStrengths (previously known as Strengthfinders) or DISC, and it can yield great results for your partnership.

Review and reflect.

Have periodic, but defined progress updates along the way. What’s going well? What are some areas for improvement? Schedule a quarterly meeting with your significant other to lay out some ways you can work better together and continue to grow your business. And here’s a pro tip – it’s probably for the best if you don’t combine these meetings with date nights.

Bring in an unbiased, third-party expert.

Financial decisions cause tension in one-in-five relationships on a daily basis, and that’s just when it comes to personal finances. If you own a business with your significant other, that may add another source of financial stress to your relationship. Instead of trying to hash things out with each other, consider bringing in a CPA who can provide their unbiased, expert opinion. The AICPA’s #CPApowered campaign has a helpful tool to find a CPA near you.

Above all, remember that at the end of the day, you were a couple in love first. Separate work and home life as much as possible – now stop reading this and get back to your Valentine’s Day dinner!

Samantha Delgado, Manager – Communications, PR & Corporate Responsibility, Association of International Certified Professional Accountants

How you can help states protect your CPA license

Post author By FFC
Post date February 12, 2019

How you can help states protect your CPA license

Should the government license professions? It’s not a new question, but states across the country are taking new action in 2019. More than 30 states are considering legislation that would reduce or remove professional licensing requirements. CPAs are not exempt from this legislation.

These proposals represent a huge threat to CPA mobility. Right now, CPAs can work across state lines in 53 U.S. jurisdictions without providing any notification or paying any additional fees. CPA firms can operate the same way in 26 states thanks to CPA firm mobility.

However, this flexibility hinges on the idea that states all have the same requirements for licensure. Currently, every state requires CPAs to meet education, exam and experience requirements. All CPAs take the same exam, and all CPAs are required to maintain continuing professional education. Because of this, consumers can trust that hiring CPAs means hiring qualified and competent individuals. Changing licensure requirements in the states will lead to a higher compliance cost for CPAs and CPA firms. In today’s global economy, it’s an everyday practice for CPAs to have clients in multiple jurisdictions. The cost of obtaining licenses in multiple states would raise the cost of CPA services.

Regulatory reform in the states could change the requirements for licensure or even allow non-licensed individuals to offer CPA services. For example, the West Virginia legislature is considering a bill that would allow non-CPAs to perform attest services as long as customers sign agreements acknowledging that these service providers are not CPAs. This type of legislation is not unique to West Virginia and is gaining steam around the country.

So, what should you as a CPA do? If this legislation comes up in your state, reach out to your state CPA society to see how you can get involved. Policymakers need to hear from you and your fellow CPAs about how this legislation affects the profession and how your clients will be harmed if licensure requirements are taken away.

AICPA is working with state CPA societies, state boards of accountancy and the National Association of State Boards of Accountancy to combat this legislation in the states.

Skip Braziel, Vice President, State Regulatory & Legislative Affairs, American Institute of Certified Public Accountants

6 funny TV shows that do taxes better than you do

Post author By FFC
Post date February 8, 2019

6 funny TV shows that do taxes better than you do

There are 77 days between the start of busy season and the April 15 deadline this year. That’s an uncomfortably long — or as some would suggest, uncomfortably short — amount of time for taxes.

It just so happens that 77 days is also the total amount of time the average American adult spends watching television every year. If you’re a tax practitioner, you’re probably not getting a lot of those days in right now.

During busy season, you have a limited number of hours to watch the best programming available. You need to be sure you’re taking advantage of the precious free time you have and getting only the good stuff.

To help, here’s a list of the best television episodes dedicated to tax. Take a much-needed break and sit down for a hilarious look at what happens when busy season doesn’t go according to plan.

Maybe think of it as research!

“The Audit” – The Golden Girls, season 3, episode 10

What happens when your ex-spouse’s tax problems become your tax problems? Dorothy finds out the hard way when Stan’s audited, and the IRS starts taking a hard look at the years leading up to their divorce. Dorothy pawns her prized ring, Sophia gives advice, Rose attends a Spanish class, and maybe Stan learns his lesson after all.

Best quote of the episode: “I’ve been at this job almost four years now, and in that short time I can honestly say I have never seen such an inept, clumsy, downright stupid attempt to avoid paying income tax.”

“1040 or Fight” – The Mary Tyler Moore Show, season 1, episode 11

If you have to meet with the Internal Revenue Service, it helps to put your best foot forward. That effort doesn’t go as planned for Mary. She makes a great first impression on the auditor, Robert, and by the conclusion of the meeting, she has a date. At the end of the episode — and the end of her audit — Mary must decide if she wants to keep seeing Robert.

Best quote of the episode: “You know, Mary? You’re the only person I know who bakes chocolate chip cookies for an audit by the United States government.”

“Crimes & Misdemeanors & Ex-FSs” – The Mindy Project, season 3, episode 3

Six years of unpaid taxes can do a number on relationships. In this episode, Mindy seeks out the help of her ex-boyfriend — conveniently, also a lawyer — and hijinks ensue. Current boyfriends and past boyfriends clash and at the end of it, Mindy has a new dresser. All-in-all, not the worst outcome for someone whose back taxes are reaching the point of “seriously delinquent.”

Best quote of the episode: “In July of last year, you spent more on emojis than rent.”

“Trouble with trillions” – The Simpsons, season 9, episode 12

This 1998 tax-focused episode is a classic. As moronic and laughable as Homer Simpson is, it’s hard not to find his basic lack of tax knowledge alarming. This episode follows the unfortunate Simpson who not only is terrible at paying his taxes but gets caught up in an FBI sting set up to trap his boss, Mr. Burns. Also, if you’re a fan of Simpsons-tax crossovers, Tony Nitti, CPA, wrote an article that breaks down the top tax references in the series.

Best quote of the episode: “Okay Marge. If anybody asks, you require 24-hour nursing care, Lisa’s a clergyman, Maggie is seven people and Bart was wounded in Vietnam.”

“The One with George Stephanopoulos” – Friends, season 1, episode 4

How do you explain income taxes to someone who’s never paid them before? Hand them their first paycheck. At least, that’s how Rachel discovers just how much of her earnings are paid out before she even has a chance to spend them. The episode doesn’t exactly focus on tax, and it doesn’t feature George Stephanopoulos, but true to its name, it will give you a friendly feeling at the end.

Best quote of the episode: “Who’s FICA? Why’s he getting all my money?”

“E. Peterbus Unum” – Family Guy, season 2, episode 18

If you don’t receive a big tax refund this year, it may be a good time to establish your own country. Peter’s dream of a fancy backyard pool is almost derailed when he doesn’t get a tax refund. That’s until he decides to penny pinch and build it himself anyway. Long story short, the city won’t approve the zoning, Peter creates a new micronation (named Petoria, if you’re wondering), and he invades Joe’s backyard. Spoiler alert: It doesn’t end well for the Griffin family.

Best quote of the episode: “You can write off medical stuff? If I’d known, I wouldn’t have used a discount surgeon.”

Busy season is going to be around for a while yet, so don’t forget to take a little time out of the hectic workflow and sit down for a laugh or two. It’s a stressful time, but you’ll make it through. You’re better equipped to handle it than any of these unfortunate characters.

If you run into any problems, check back in with us. The AICPA Tax Section has a page devoted to busy season concerns. We can’t guarantee you’ll get a laugh, but you may find a resource or two that’ll get you through the next 66 days.

Allison Carter Fanney, Communications Manager, Tax, Association of International Certified Professional Accountants

5 reasons to keep your procrastibaking habit during busy season

Post author By FFC
Post date February 6, 2019

5 reasons to keep your procrastibaking habit during busy season

If you’ve been on Instagram lately, you’ve probably seen posts tagged with #procrastibaking. If you aren’t familiar with the term, to “procrastibake” is to put off doing something you have to do in favor of baking. The term was featured in a New York Times article back in May and has increased in popularity ever since. And it’s a pretty likable concept – if you are a fan of sweets and don’t mind getting your hands and your kitchen a little dirty.

Sometimes you just need a break, and as you delve deeper into busy season, you may find that periodic diversions help you get more done. But why spend this time baking?

Baking relieves stress. If you’ve ever kneaded bread dough or rolled out cookie dough, you know what I mean. There’s something very satisfying about these activities. Frustrated that a client hasn’t returned their completed organizer? Knead some dough. Getting your hands covered in flour is a nice change, and it feels better than typing a follow-up email.

Baking contributes to happiness. This was all I needed to hear. A study from the Journal of Positive Psychology found that people who spent short periods of time doing creative activities like baking reported being in a happy mood and having more positive energy. You can then spread some cheer by taking that new-found positivity back into client meetings.

Baking allows you to practice mindfulness. Philip Muskin, a psychiatry professor at Columbia University, sums it up well. He says, “Baking is mindful. Mindfulness means paying attention to yourself in the moment and not being in the past or the future, but really being there.” Like accounting, baking is all about precision, and there’s a peace that can be found in paying attention to the details. It’s important to measure ingredients carefully when baking; otherwise, you may end up with a cake that’s too dense or too sweet.

Baking invites creative expression. Despite the required precision, baking also allows you to express yourself. How you flavor the next quick bread you make or decorate the next cake you bake is completely up to you. Have you thought about making tax-themed sugar cookies? What about cupcakes with your company’s logo on top? There aren’t rules as far as I’m concerned, and that’s part of the fun.

Baking spreads joy. Sure, you could devour the batch of cookies you made all by yourself, but why not share? There’s something special about seeing people’s faces light up as they savor your homemade baked goods. Bake up a batch tonight and share them with your colleagues tomorrow. They’ll appreciate being able to share in your procrastibaking bliss.

After your baking break, check out these tax season resources to set yourself up for a smoother filing season. The AICPA tax return due dates page can help you keep track of what’s due when, the personal finance scorecard can help you discover client needs and ways you can add value, and this busy season fun calendar features ideas for keeping staff motivated during this time of year.

Alexis Rothberg, Communications Manager – Public Accounting, Association of International Certified Professional Accountants

IRS transcript changes: What to do now that busy season’s here

Post author By FFC
Post date February 1, 2019

IRS transcript changes: What to do now that busy season’s here

Busy season is here.

If you’re a tax practitioner, you’re no doubt gearing up for what lies ahead. A big part of busy season prep is making sense of the recent changes to IRS transcripts and the resulting steep transcript learning curve. You may be wondering if you can still get the information you need to serve your clients.

While complex, cumbersome and somewhat confusing, transcripts are incredibly helpful. Authorized tax practitioners can assess a taxpayer’s overall standing with the IRS by reviewing one or a combination of four types of transcripts: tax return, tax account, record of account, and wage and income.

Here’s the lowdown on what the IRS changed and what you need to do to make sure you’re ready to go.

Cybersecurity concerns

Identity thieves love tax transcripts because, until recently, they contained enough information to file a fake return or steal an identity from an unwitting victim. To better protect taxpayer data from cybercriminals, the IRS announced changes to both the format and distribution of tax transcripts. These changes are sweeping. Luckily for us, they’re being implemented in phases.

Phase one started on Sept. 23, 2018, when the IRS began redacting identifying information (Social Security numbers (SSNs), Employer Identification Numbers (EINs), addresses, etc.) on individual and business tax transcripts.

Here’s what is visible on the new tax transcript:

Last four digits of any SSNs listed on the transcript

Last four digits of any EINs listed on the transcript

Last four digits of any account or telephone numbers

First four characters of the last name for any individual

First four characters of a business’ name

First six characters of the street address, including spaces

All money amounts, including wage and income, balance due, interest and penalties

Phase two was set to begin on Feb. 4, when the IRS planned to stop faxing transcripts to either taxpayers or third parties (including a taxpayer’s CPA). However, on Jan. 30, the IRS announced it will extend its transcript faxing service beyond the planned Feb. 4 end date and is reviewing options for a new timeframe.

The third and final phase is expected to begin in May when the IRS will stop mailing transcripts to third parties listed on Line 5a of the Form 4506-T and 4506-T-EZ. This field will be eliminated from the form, and the tax transcript will be mailed to the taxpayer’s address of record only. Should the IRS also decide to stop faxing transcripts, this could represent yet another hurdle for tax practitioners seeking access to their clients’ information.

What these changes mean for you

You may have been caught off guard when you first heard about these changes. You weren’t alone. Many tax practitioners voiced concerns over the news. The AICPA shared those concerns and sent a comment letter to the IRS Commissioner. We also offered a compromise aimed at reconciling the demand for security and a practitioner’s need for quickly accessing taxpayer information to resolve client issues.

The good news is that the IRS responded to the feedback and made some changes to its plans. If you need an unmasked wage and income transcript, you can call the Practitioner Priority Service (PPS) line and with proper authorization, have the unmasked transcript deposited in your e-Services secure mailbox. This is incredibly valuable if you have a client who hasn’t filed a tax return for many years and is missing some information statements (like 1099s). You’ll have access to names of past employers and will be able to verify dollar amounts reflected in IRS records.

Fact Sheet 2018-20 outlines the steps for requesting the unredacted transcript in more detail. (Note that this fact sheet was published before the plan to extend the faxing service for transcripts was made.)

Your top takeaway for tax season

For now, it’s business as usual for practitioners who would like to receive client transcripts via fax. In light of the proposed changes, what’s the one thing you should do in the wake of all the other changes and in anticipation of the day when you can’t get a transcript faxed to you?

Set up an e-Services account. Immediately. Otherwise, it could take longer to resolve client issues, becoming costly for your clients. Money in the form of interest and penalties could add up as you wait for these important transcripts to get to you. The AICPA’s Tax Section Tax Technology Resource Center has guidance and tools that can help you set up an account and navigate other IRS online services.

There’s a lot of change happening this busy season, but you don’t have to navigate it alone. The AICPA Tax Section is here for you. Visit our busy season hub for information, resources, tools and news that can help you along the way.

Sarah Shannonhouse, CPA, Manager, Tax Practice & Ethics, Association of International Certified Professional Accountants

How workplace trends are affecting small businesses

Post author By FFC
Post date January 31, 2019

How workplace trends are affecting small businesses

It’s widely known that finding top-tier talent is a challenge many small CPA firms and other small businesses face. On the most recent episode of The Small Biz Brunch, a podcast from AICPA’s #CPApowered campaign, I chatted with Mark Astrinos, CPA/PFS about this issue, changing trends in the workplace and how they’re affecting bottom lines and company cultures. A business owner himself, he had some key insights into hiring and retaining top talent, especially when it comes to millennials. We’ve distilled three of those in this post (lets people know there is more info in the podcast).

It’s not just about the salary anymore.

A survey from the AICPA found that Americans would choose a job with benefits over an identical job that offered a salary 30% higher, but no benefits. These days, benefits – or perks – can be anything from 401(k) matches to delicious snacks in the break room. Overall, employees want to feel valued, which probably means providing more than just an appealing number on a paycheck (although, let’s be honest, that’s pretty important too).

Employees need help navigating their benefit packages.

According to the survey, only 28% of working Americans are very confident they’re using their benefits to their fullest potential. That’s likely a lot of money being left on the table. Think back to when you were on-boarded at your first job; remember all the paperwork you had to sign? And the handbook you had to read through? And that’s on top of learning your job function. It’s understandable that learning the ins and outs of your benefits took a backseat (maybe something like this as a transition). Although it’s ultimately the employee’s responsibility to make the most of their benefit package, it doesn’t hurt to for employers to offer opportunities to walk them through it from time to time. You can do this by hosting a Lunch n’ Learn with your insurance provider, or have an open-door policy if an employee ever has a question about their retirement plan. When employees to get the most from their plan, you’re getting your investment’s worth as an employer.

They don’t want your grandfather’s PTO plan.

Paid time off. It’s something that’s been debated over and over again, and still no one can seem to come up with the perfect solution. However, if you’re only offering four days of vacation time with no option to work remotely – well, don’t expect to attract the kind of talent you really want. Astrinos says that at the end of the day, it comes down to what works for your company and its culture – but if you’re not entirely sure how to manage your benefits plan, then bring in an expert to help you navigate it.

The lesson here is not to expect a potential employee to jump for joy just because you’re offering them a big, fat paycheck but limited PTO. And, don’t expect to retain your top employee because you gave them a promotion but no opportunities for outside learning. Employees need a competitive salary, but are often motivated by more than just their paycheck. Offering a work-life balance will increase staff loyalty and help attract top-tier talent.

If you need resources for your small CPA firm, check out what the AICPA offers with your membership. And if you’d like to hear my whole conversation about trends in the workplace, check out The Small Biz Brunch podcast.

Samantha Delgado, Manager – Communications, PR & Corporate Responsibility, Association of International Certified Professional Accountants

5 busy season curveballs heading your way

Post author By FFC
Post date January 29, 2019

5 busy season curveballs heading your way

Thanks to the biggest overhaul to the tax system since 1986, there’s more on your plate than usual this busy season. And while you’re managing client expectations and navigating the new federal tax laws, you have to consider accounting methods changes, Wayfair concerns and a prolonged government shutdown. It’s a lot to take on. But though this busy season may feel a bit daunting, remember that no one is better equipped to handle it than you.

As you look ahead to the task at hand, remember the famous quote by Babe Ruth: “Never allow the fear of striking out to keep you from playing the game.”

So, gear up to play the game and pay special attention to these key issues.

The government shutdown throws us a curveball.

Although many of us want to put our fingers in our ears and say “la, la, la” when we hear the words “government shutdown,” the potential effects on busy season and IRS services force us to listen closely to what’s going on. Keep in mind, the government has reopened until Feb. 15, which means we may be looking at another shutdown during busy season.

The effects of the recent shutdown on IRS processes are yet to be seen, so prepare yourself and your clients for possible bottlenecks and delays.

IRS transcripts look a little different and may take longer to get.

The IRS plans to stop faxing transcripts as of Feb. 4, 2019, which means you may have to wait on the U.S. Postal Service to get your hands on your clients’ transcripts. To make things easier, use e-Services to view a client’s return and account information online. And don’t get thrown off base by transcripts that look a little different than before. The IRS introduced a new format with redacted information and created a new customer file number to use as an identifier.

The partnership audit regime is alive and well.

The wait is over. The centralized partnership audit procedures under the Bipartisan Budget Act of 2015 (BBA) are in effect for partnerships with tax years beginning after Dec. 31, 2017, which means calendar-year partnerships must keep this in mind when filing their 2018 returns. Clients will need to decide to either elect out of the new rules or identify a partnership representative on their tax returns. Pay special attention to the new questions on Form 1065, U.S. Return of Partnership Income (see page three, question 25).

State and local tax concerns are growing after Wayfair.

Last year’s U.S. Supreme Court ruling on South Dakota v. Wayfair Inc., has an enormous influence on state and local tax considerations. Wayfair overturned 26 years of precedent by changing the nexus landscape from a physical presence standard to more of an economic-based standard. You should be touching base with clients about the potential effects on their filing situation. Use this Wayfair client notification letter to get the conversation started.

Tax reform changes are causing uncertainty.

To put it simply, tax reform changed everything. From new deductions to an assortment of new forms, schedules and guidance, it’s made our job harder. But this is absolutely in our wheelhouse to handle. We just need to adjust and decipher what to do for each client individually.

Due diligence — Be sure you’re covering all bases this busy season. Use strong engagement letters that outline your specific scope of work (you can find templates of these letters in the Tax Section’s Annual Tax Compliance Kit). Document your files exceptionally well, especially when a client takes a position that may fall in a gray area of tax law. Also, refresh yourself with Form 8275, Disclosure Statement to reduce potential penalties.

Estimated taxes and penalties — The IRS responded to concerns that individual taxpayers may have found it too difficult to estimate their 2018 taxes because of the changes from tax reform. Instead of the usual requirement to pay 90 percent of the tax, individual taxpayers won’t be assessed the penalty if they paid at least 85 percent for tax year 2018. All tax software should be adjusted for these calculations this year.

You’re up against some heavy hitters this busy season. Remember to bookmark and use our busy season guidance and resource hub to have a smoother run of it.

Thinking positively for a minute: This season gives you, the CPA, an opportunity to really hit a home run for your clients. Step up to the plate and show your clients what you’re made of.

Susan Allen, CPA/CITP, CGMA, Senior Manager, Tax Practice & Ethics, Association of International Certified Professional Accountants

Data breaches are here to stay

Post author By FFC
Post date January 28, 2019

Data breaches are here to stay

Data breaches are constantly in the news. Last year, Marriott, Quora and Dunkin Donuts all made headlines for privacy breaches – and that’s just to name a few. With breaches happening all the time, it’s easy to feel overwhelmed. But it’s more important than ever to focus on data protection. In honor of Data Privacy Day, here are three ways to protect your clients’ data during tax season and all year long.

Develop an incident response plan

Is your firm ready for a cyberattack? In today’s world, it’s not about if you will experience an attack, but when. Having a prepared incident response plan means you and your staff know what to do as soon as you realize an attack happened. You’ll be able to respond faster and more efficiently. Your response plan will delegate responsibilities, detail how you will notify your clients and help mitigate any reputation damage to your firm.

Make sure your cybersecurity efforts are working

Once you develop plans and procedures, you want to make sure they are achieving your goals. Your clients want to know that you are protecting their information, regulators want to know if you are complying with data protection laws and your senior management wants to understand all the firm’s cybersecurity efforts.

To help communicate to these and other stakeholders, the AICPA developed a cybersecurity risk management reporting framework. You can use it to analyze your own efforts, or – if you perform advisory and assurance services in this area – you can use it to help your clients evaluate and report on theirs. Not only will this help you understand if your internal controls are effective, but it will build trust and transparency with your customers and leadership.

Be aware of changing laws and regulations

Part of protecting your clients’ data is complying with all relevant laws and regulations. And these change all the time – on state, federal and international levels.

In the United States, state legislatures across the country consider data breach laws every year. These bills change when you must notify clients about a breach, how you notify them and when you notify government authorities. For example, in 2018, the New York State Assembly considered a bill that expanded data breach notification requirements to any entity that stores a New York resident’s private information. That would mean out-of-state firms with clients in New York would be subject to these rules. While the bill did not pass last year, these types of proposals are already cropping up all over the country. So far, 16 states have introduced cybersecurity legislation in 2019.

On an international level, your firm may now be subject to the European Union’s General Data Protection Regulation. If you or your clients deal with personal data of any person in the EU, the way you store data might need significant changes.

Today is Data Privacy Day but protecting your clients’ information is an everyday task. Data breaches aren’t going anywhere and it’s essential to remain on top of cybersecurity to keep your firm and your clients safe.

Julia Woislaw, Manager, Advocacy Communications, Association of International Certified Professional Accountants

10 resources to help you cross the tax season finish line

Post author By FFC
Post date January 25, 2019

10 resources to help you cross the tax season finish line

When I was working in a small practice, tax season always felt like a race to me. After months of preparation, I sped toward filing deadlines that were akin to finish lines. Whether the goal was to take first place or simply get it done, I wanted to cross the line as strong and healthy as possible. That meant I had to pay close attention to my pace.

A big part of good race pacing is having supportive resources and people helping you along the way. Luckily, you have the AICPA and Tax Section team cheering you on. Here are ten resources I think will help ease the pressure this tax season.

First and foremost, bookmark the Tax Season Resources for CPAs. It’s a hub of resources that’ll help you hit the ground running. You’ll also find news, practice guides and links to valuable toolkits like the 2018 Annual Tax Compliance Kit.

Did you pick up your tax reform pocket guide at the AICPA ENGAGE or National Tax Conference? If yes, GREAT. If not, don’t fear. We have a version of it on our website. Download this guide for an overview of federal tax law changes and planning opportunities.

Are you still unsure of how the new Sec. 199A will affect your business clients’ taxes? Take a look at the 199A flowchart on the Tax Reform Resource Center. You can also find FAQs, news, podcasts and interact with our unique Sec. 199A virtual assistant.

With all the media and press about tax law changes, you’ve probably spent more time than usual educating your clients about their taxes — and maybe now you’re wondering how to handle questions about billing. Check out these Q&As related to billing for talking points.

Do you consult with your clients regarding their potential state sales/use tax nexus? To help you with recent changes in this area, review the resources on the South Dakota v. Wayfair

You may have clients or colleagues asking you questions about how tax reform will affect their taxes this year. Download the 2018 year in review presentation from the Tax Practitioner’s Marketing Toolkit to make presenting this topic little easier.

Still trying to wrap your head around all the technology changes happening in the profession? Get future ready with the information and tools in the new Tax Technology Resource Center.

Looking for info on the due dates for federal and state returns? We got you. Refer to a handy chart on common federal due dates, and download state guides for businesses and individuals from the tax return due dates

There are many tax issues to consider when working with a new business. Use this initial business return filing checklist to assist you with filing your clients’ first year returns.

Do you need some insight into the top financial and tax planning ideas for 2019? Join this webcast on Feb. 7 to find ways to demonstrate your value during the upcoming season.

One of my favorite motivational quotes is “Don’t stop when you are tired. Stop when you are done.” I know you’ll all be tired at various points during this stressful and busy time. Just remember: you have help all along the way. Gear up now and pace yourself so you can cross the finish line strong.

Race smart, my friends!

April Walker, CPA, CGMA, Lead Manager, Tax Practice & Ethics, Association of International Certified Professional Accountants