Category: News

Most organizations are effectively helping their staffs cope during a time that has put even the strongest among us on edge. Some stress-relieving strategies include:

• moving to a four-day workweek,
• giving stipends for wellness coaches or classes and
• openly discussing mental health and better self-care with the staff.

Job security is one of people’s top worries. According to a National Institute for Health Care Management Foundation study, 54% of Americans fear that they’ll lose their job because of the pandemic. Articles, studies, podcasts or white papers are published almost daily about how employees must learn new skills to remain employable in a world where industries are going through digital transformation. The accounting and finance profession is no exception. From conducting audits and safeguarding clients’ data to improving customers’ experiences, technology is altering how we work.

Knowing job security is one of people’s top fears, how can organizations alleviate some of their staffs’ stress? Offer more training. Unfortunately, the learning and development budget often dips during uncertain times. Smart leaders, while making critical decisions to keep businesses running as smoothly as possible, understand that people are an incredible asset. Those employees drive culture and culture drives brand. Organizations that offer learning to their staffs not only boost goodwill but set up the organization to surpass competitors beyond the pandemic and for years to come.

Some organizations wrongly believe that trained employees will desert them for better-paying jobs. Science Daily cites the five-year study by two German university professors that says the opposite. They found that training increases not only productivity but loyalty to the company, even when an employee could leave for a high-paying role.

Investing in staff learning and development also can grow a business’s bottom line. An elearningindustry.com article says that companies investing at least $1,500 per employee annually earn 24% more profit than companies with lower training budgets. 

Josh Bersin, an influencer and global industry analyst, says in a LinkedIn article that the value of employees increases over time. At first, a new employee is a cost to the organization. With time, they begin to understand the internal workings and, with the right development, become more valuable to the organization. Retention is key to realizing that appreciating asset that comes from holding on to valuable staff members.

If you’re a partner or senior leader, how should you invest in your staff’s training? What does your staff need to take your organization to the next level? Maybe it’s that LMS system you’ve considered. Perhaps it’s getting a qualified trainer to educate your staff about the latest technologies. Could several members of your staff attend an upcoming conference that serves CPAs in a variety of roles and industries and at various career levels, such as ENGAGE 2021? Take advantage of group pricing and register your team.

Look for free or low-cost options to develop your staff, such as the AICPA’s Digital Mindset Pack that offers free CPE for AICPA® members around the hottest technologies changing the profession. Check out the Go Beyond Disruption podcast for insights on emerging technology, human intelligence and digital transformation.

Keeping your staff engaged with the learning they need for the future shows that you care about career development. They’ll probably be thankful and loyal to you through the pandemic, quite possibly as loud brand ambassadors who praise your organization while taking your business to the next level.

Association Staff

     

Related Stories

• 5 free resources to help market your services
• It’s Data Privacy Day. Where has your ID been?
• Taxpayers are unaware of remote worker state tax liabilities

 

Your personal identification (ID) is just that, personal. Unfortunately, in today’s world, your ID could get compromised with everyday activities such as ordering food online or signing up for a new music service. To observe Data Privacy Day, the AICPA® Financial Literacy Commission encourages you to take a few steps to find out where your ID has been — and make sure it’s safe and secure.

It might surprise you to learn that most Americans feel that it’s inevitable that their information will be stolen. Three in five (60%) say that it’s likely that ID theft will lead to a financial loss in the next year. The good news is that they recognize this as a real threat. The bad news is that many still don’t incorporate measures to protect their financial information, even with a significant increase in their online shopping since the start of the pandemic. This is all according to a recent AICPA survey The Harris Poll conducted on behalf of the American Institute of CPAs® (AICPA).

Taking a few proactive steps can go a long way to help mitigate the ID theft threat. To avoid the financial fallout of someone posing as you, the AICPA’s 360 Degrees of Financial Literacy program encourages Americans to use Data Privacy Day to learn about the threat and the steps that will help protect them.

Why is protecting your personal and financial information important? And what can YOU do to prevent your data from falling into the wrong hands? To learn these answers and more, Matt Rosenberg, CPA/PFS, a member of the AICPA’s National CPA Financial Literacy Commission, spoke with AICPA Insights about the AICPA survey results  and how to protect your information from scammers.

Did anything from the survey concern you? Why does this matter now more than ever?

Matt Rosenberg: The fact that more than half of Americans have increased their online shopping (56%) since the start of the pandemic shouldn’t come as a surprise, however, it is concerning that less than half of online shoppers (45%) regularly check their statements to ensure charges are recorded correctly. This is not only important for preventing fraud but also catching mistakes. I’d hate for $200 to be taken from my account for a cup of coffee instead of $2.00, simply because the vendor misplaced a decimal and I never noticed it. 

What are some of the risks for those who don’t take steps to protect their information?

MR: While credit card companies or banks may refund some fraudulent purchases, this isn’t a certainty, and most of the risks to identity theft are broader than a single transaction. Once a fraudster has access to your personal and financial information, they can be used to make recurring unauthorized purchases, open accounts and damage your credit. Bad credit makes it harder to obtain credit cards, favorable loan terms, lease a car, purchase a home or even pass a background check as part of a job application. The outcome can be a downward spiral of financial difficulty that will make a consumer’s life harder and more stressful. The increase in online shopping has created more opportunity for scammers. So now, more than ever, it’s important for consumers to pay attention. Many people who haven’t fallen victim to identity theft may not take it as seriously. However, the survey found that nearly one in five Americans (19%) suffered identity theft or attempted identity theft within the last year, showing that the issue is widespread.

How can Americans protect their IDs?

MR: First, people should be familiar with their credit report and score. Unfortunately, the survey found that one-third (33%) of Americans have never check their credit report. While regularly checking your credit can feel like a chore, credit agencies make it easier by allowing individuals to sign up to receive alerts anytime something changes their credit scores. Everyone should sign up for these alerts and make sure to look at it when one is received. Second, everyone should create an efficient password system and keep it confidential. Using the same password for all sites, or easily guessed passwords, is never a good idea. But using superfluous or elusive passwords that are different for every site often leads people to write them down and/or create lists that can be compromised. Having a password system that is both secure and manageable takes time and thought, but it’s the best way to prevent your identity from being compromised.

The AICPA has resources at 360FinancialLiteracy.org/SafeID to help Americans learn about the ways to protect their information and the steps to take if they become an ID theft victim. Share this valuable information with friends, family members and clients to help them protect their personal and financial information from fraudsters.

Association Staff

     

Related Stories

• To avoid tax surprises Americans should update their W-4
• Taxpayers are unaware of remote worker state tax liabilities
• 2021 busy season due dates can’t come soon enough

 

New legislation from the Consolidated Appropriations Act, 2021 creates a chance for some of your clients to take advantage of both Paycheck Protection Program (PPP) loans and the Employee Retention Credit (ERC).

Several changes specific to the ERC can provide an opportunity for additional relief for your clients. The significant changes that affect small businesses include:

• Extension of the ERC through June 30, 2021
• Increased credit rate from 50% to 70% of qualified wages
• Increased the limit on per-employee qualified wages from $10,000 for the year to $10,000 for each quarter
• Reduced year-over-year gross receipts decline from 50% to 20% and
• Created a safe harbor to allow employers to use prior-quarter gross receipts to determine eligibility

The legislation means that employers who receive PPP loans may still qualify for the ERC retroactive to March 13, 2020.

Previously, clients receiving a PPP loan during the first round of relief couldn’t take advantage of the ERC. However, with the new legislation, a business can take the ERC even if they received PPP funding and loan forgiveness as long as the payroll identified for the ERC was not paid out of PPP funds. As noted above, this change is retroactive to March 13, 2020.

Your clients may not be aware of this planning opportunity. It’s also a chance for you to bring more value to your clients by helping them take full advantage of relief options. And the time to do so is now — before completing your clients’ year-end payroll filings, especially if your clients haven’t applied for PPP debt forgiveness. Your clients can still claim the ERC if they’ve received forgiveness, but planning will be simpler if your clients haven’t applied yet. While waiting for specific IRS guidance needed to implement these provisions, you can begin discussing the opportunity with your clients.

Specifically, the bill allows eligible entities to claim the prior quarter’s credits from 2020 in the quarter in which the bill was signed: the fourth quarter of 2020.  

The ERC is a fully refundable payroll tax credit for employers that, for 2020, is equal to 50% of qualified wages employers paid beginning March 13, 2020. Businesses are eligible if:

• They were fully or partially suspended due to an order from a governmental authority limiting travel, business and meetings during the quarter of payroll not paid out of PPP funds, or:
• The business had a reduction in gross receipts of 50% or more during a calendar quarter compared to the same calendar quarter in 2019.

When the covered period for PPP loans was extended to 24 weeks, many clients’ applications for debt forgiveness qualified for 100% forgiveness on payroll alone without considering the other eligible nonpayroll costs. However, those other costs now may play a big role in receiving the ERC benefit. In assisting your clients with their forgiveness calculations, analyzing the ratio of payroll and nonpayroll costs is a critical step. If sufficient nonpayroll costs are available, limiting payroll costs to the 60% threshold required for full forgiveness may allow the remaining payroll to be eligible for the ERC-provided relief.

For your clients with fewer than 100 employees, the credit applies to all employee wages paid. For clients with more than 100 employees, there are further restrictions in analyzing the ERC opportunity. The ERC requirements for qualified wages and business activity for 2020 are different than for the ERC on wages paid in 2021. Make sure you understand the specifics and how they affect your clients.

Now is the time to plan how to help your clients maximize both PPP loans and the ERC, as this expansion also applies to round two of the PPP. A Jan. 22 webcast will review ERC changes and how PPP borrowers can use these credits. We’ll also provide updates during our AICPA Town Hall Series, in which Erik Asgeirsson, President and CEO, CPA.com; Lisa Simpson, VP — Firm Services; and leading subject-matter experts share the latest news and updates on pressing issues affecting the accounting profession. Additionally, you can find more information and resources at our Coronavirus Resource Center, which is continuously updated with news and tools to help you navigate the COVID-19 pandemic.

Carl Peterson, CPA, CGMA, Vice President — Small Firm Interests, Association of International Certified Professional Accountants

     

Related Stories

• Business funding: A key new advisory category for your firm
• Taxpayers are unaware of remote worker state tax liabilities
• 2021 busy season due dates can’t come soon enough

 

During the COVID-19 pandemic, remote work has become common for many companies. What once was a relatively small percentage of remote workers has drastically increased. A recent survey found that many new remote workers are unaware of the potential state tax implications of working in a state or states different from where their company is located.

On behalf of the American Institute of CPAs® (AICPA®), The Harris Poll surveyed 2,053 U.S. adults in October. Among the 58% of Americans employed, 42% have worked remotely during the COVID-19 pandemic and 25% were currently working remotely. More than half (55%) of those working remotely during the pandemic were unaware that failing to change their state tax withholding to reflect their remote work situation could have tax consequences.

The AICPA survey found that of those who have worked remotely during the COVID-19 pandemic,

• 47% were unaware that each state has its own tax laws related to remote working;
• 71% were unaware that working from a different state than their employer’s physical location can affect the amount of state taxes owed; and
• 54% were unaware that the number of days worked out of the state where their physical workplace is located may also affect the amount of state taxes owed.

When asked if their state has state income tax reciprocity with any other state, 42% were unsure.

Among those working remotely who have worked in a state other than their pre-pandemic physical workplace, many have done so across multiple states (on average three) for relatively short periods. Most of these remote workers (75%) have worked out of state for 60 days or fewer and 51% have worked out of state for fewer than 30 days total.

The survey also provided some optimistic results. It noted that 67% of those who have worked out of state notified their employer of the state where they were working, 51% have tracked the number of days worked in each state and 41% have changed their state income tax withholding.

The AICPA recommends remote workers take six steps to prepare for the 2021 tax filing season:

1. Compile a list of any states where you have worked remotely during 2020.
2. If you didn’t track the number of days worked in other states, try to approximate the number of days worked in each state.
3. Cities, counties, municipalities, school districts or other jurisdictions may also levy income taxes, depending on the state. Make sure you also track this level of detail.
4. Consult a CPA. You will likely have questions about how and where to file state taxes. A licensed CPA can help navigate those questions and effectively manage your state tax liability.
5. Check your state tax withholding and make any needed adjustments. If you don’t have the correct state tax withholding, you may owe state taxes, interest and penalties when you file your taxes.
6. Continue to keep a record of all jurisdictions where you have worked remotely.

It’s important to look back and ensure that you take the necessary steps to avoid a surprise tax bill in the 2021 filing season.

Association Staff

     

Related Stories

• 2021 busy season due dates can’t come soon enough
• How COVID-19 will affect states’ revenues, taxes and you
• Business funding: A key new advisory category for your firm

 

“There is no terror in the bang, only in the anticipation of it.”– Alfred Hitchcock

In a good year, CPAs fret over due dates. I’m a glass half-full type of guy, but there aren’t too many measures that could be used to call 2020 a good year. (I digress for one moment and thank my wonderful colleagues at the AICPA and the many CPAs who volunteer to assist the profession, with whom I’ve shared the 2020 journey of achievement.)

Although we’re not finished with 2020, we’re already hearing from members about March and April 15, 2021.

Will the IRS postpone those dates much like they postponed the April 15 date in 2020? What is the AICPA’s position? Now I know what Hitchcock meant — the anticipation of March and April 15 is causing “terror!”

Last spring, when the AICPA heavily advocated for a change in the April 15, 2020, due date, I heard from several members who wanted to hold fast. When the AICPA did not advocate for systemic extension beyond July 15, I heard from several more members who wanted automatic extensions until Oct. 15. I even heard from members who wanted automatic extensions until Jan. 15 or April 15, 2021.

Our members are incredibly diverse and equally passionate in their opinions. We are fortunate that our Tax Executive Committee helps us decipher often dissimilar data points and determines the best course of action for the profession.

As you can imagine, moving the filing deadline is highly controversial.

Many members feel that a deadline change is necessary to meet the compressed workload, while others think it is dragging the workload further out, which makes for a more strenuous filing season. Additionally, there will be pressure to hold to April 15 as Tax Day because of federal revenue considerations. From a state conformity perspective, states will also be under pressure to keep to original due dates because of revenue shortfalls.

The IRS has not spoken publicly about possible changes to filing or payment dates for the upcoming tax filing season. Regardless, taxpayers and their advisers should presume that it will be “business as usual” and engage in their customary busy season readiness activities to gear up for the March 15, April 15 and other due dates that we all face. You can track IRS COVID-related impacts at IRS Operations During COVID-19: Mission-critical functions continue.

The AICPA, too, is not currently advocating a change from the normal filing or payment deadlines.

Importantly, our Tax Section continues to ready members for a strategic advantage — during tax filing season and beyond — in demonstrating CPAs’ value as a trusted provider of professional tax and planning services.

Our Annual Tax Compliance Kit of engagement letters, organizers, checklists and practice guides helps members comply with tax laws and effectively serve your clients.

We are closely monitoring the situation with COVID-19 and the impact on taxpayers, the tax community and tax administration. We will make ongoing assessments in early 2021 so that there will be ample time leading up to the March and April deadlines for all impacted parties to make adjustments.

In addition, the AICPA’s tax advocacy initiatives continue to address the issues taxpayers and tax practitioners are currently struggling with, daily, in their IRS interactions.

They include:

• Pushing for an expedited and streamlined reasonable cause penalty abatement process for taxpayers affected by the pandemic
• Protecting taxpayers, their representatives and the IRS, by requesting that the IRS extend the expiration date of the Aug. 28, 2020, memorandum (“Temporary Deviation From Handwritten Signature Requirement for Limited List of Tax Forms”) through Oct. 15, 2021
• Stopping the rash of collection levy notices that have escalated quickly (sometimes without an initial notice) to actual levies, and partly relate to the significant IRS mail backlog
• Changing a new IRS power of attorney pilot program that doesn’t facilitate the process, requires more security measures than wet signatures, is time consuming, and doesn’t provide any real benefit to CPAs
• Facilitating the IRS’s development of a new “Online Tax Pro’s Account” that is workable from a CPA’s perspective

Finally, the Tax Executive Committee has created a task force to consider our COVID-19 tax system experiences in 2020 and 2021 — indeed, we have not yet reached the end of those experiences — and recommend tax practice management and systemic changes. Recommendations, however, are likely not to be made until starting in mid-2021 at the earliest.

One of Alfred Hitchcock’s approaches to moviemaking was to “always make the audience suffer as much as possible.” That’s understandable for a director who was known as the “master of suspense,” but not what CPAs are looking for in tax filing season. We are here to help remove some of the drama from the annual tax show.

Edward S. Karl, CPA, CGMA, Vice President of Taxation, American Institute of CPAs

     

Related Stories

• How COVID-19 will affect states’ revenues, taxes and you
• Do THIS — Not THAT in preparation for the upcoming tax season
• Employee Payroll Tax Deferral — Is it workable?

 

In this interview, Barry Melancon, CPA, CGMA, President and CEO of the American Institute of CPAs (AICPA) and CEO of the Association of International Certified Professional Accountants (the Association), reflects on an extraordinary year and the steps we must take to prepare for 2021.

You have described 2020 as a “historic” year for the profession. Can you explain what you mean by that?

We faced a level of disruption none of us had ever experienced before. As a trusted profession, accountants were looked to for guidance and stability. We were on the front line of the pandemic’s economic effects, and our expertise, abilities and the relationships we have built were put to the test. I am especially proud of how the profession rallied to support small businesses during this challenging period.

We could effectively respond to this crisis because of our long history of anticipating change and adapting. The profession is — and has always been — transformative, evolving to meet the demands of a rapidly-changing environment. For more than 133 years, we have grown our services and skills to remain resilient against disruption and turn that resilience into results for our clients, communities and companies.

How is the Association helping members and students navigate the pandemic?

In March, we launched the AICPA coronavirus resource center, and shared tools, resources, and learning to help members stay informed as the pandemic unfolded — the weekly AICPA Town Hall webcast series continues. To make sure members continued to have access to our learning, we converted our in-person training and conferences to online, including our premier ENGAGE conference, held this summer. We also created a dedicated resource center for management accountants and a 5-part Agile Finance webcast and whitepaper series, developed in partnership with Oracle, to address issues specific to those working in business and industry.

The Paycheck Protection Program (PPP) helped many businesses get through the pandemic. CPAs were key to preparing loan applications and navigating businesses through the loan forgiveness process. To help CPAs implement the program, we created a resource page, forgiveness tools, and in September, we launched a next-generation PPP Forgiveness platform for CPAs and businesses. We will continue to help members navigate the confusion around the forgiveness process.

Students were also under enormous stress, particularly when it came to their exams. We worked with the National Association of State Boards of Accountancy (NASBA) and Prometric to evoke an emergency testing window. We accelerated our efforts to move the CGMA exam online, implementing a remote option in May. We also instituted a new hardship grant for accounting students.

We take our responsibility to members and students very seriously and are committed to providing the tools they need to be successful — no matter the environment.

The Association is key to sound policymaking around the world. Can you tell us about some of the U.S. efforts from 2020?

With help from our members and CPA State Societies, we successfully advocated for many key relief programs and efforts throughout 2020. Highlights include:

• Successfully advocated for the extension of the April 15 tax filing and payment deadline to July 15
• Urged the Internal Revenue Service (IRS) to update and modernize e-filing signature requirements on key forms — specifically requesting e-signatures during the coronavirus pandemic — with the goal of making this temporary relief permanent
• Successfully advocated for public accounting to be designated as an essential service
• Created an AICPA PPP Coalition of small business payroll providers to facilitate information sharing and ease-of-access for loan funding
• Urged the IRS and Treasury to issue guidance on the employer retention credit, sick leave and medical leave credits and PPP loan forgiveness
• Mobilized members and state CPA societies to push for deductibility of PPP-funded expenses
• Supported state-level activities, including the Alliance for Responsible Professional Licensing‘s interstate practice report and development of state-level coalitions to address local threats to licensure

We have always had a strong voice in advocacy, but this year, we have been more essential to public policy changes in the U.S. and beyond than ever before. The level of activity is historic for the profession, and it will continue well beyond the end of the health crisis.

The Association did not just focus on COVID-19 in 2020. What are some of the key initiatives we made progress on in 2020?

The pandemic did not disrupt our efforts to reimagine the profession. 

We made significant progress on CPA Evolution, a joint effort with NASBA to reimagine CPA licensure. This year, both the AICPA Governing Council and the NASBA Board of Directors voted to support advancing the initiative. We are moving forward with implementing the core plus discipline licensure model.

The AICPA, CPA.com and CaseWare International have developed the Dynamic Audit Solution. This year, we delivered a minimally viable product to participating firms, and we plan to deliver our first end-to-end commercial release in mid-2021.

Through CPA.com, we also launched the .cpa domain, a new secure domain exclusive to CPA firms. It signals a clear connection to the profession, driving trust in an increasingly uncertain online environment.

In January, we created a Global Career Hub for both management and public accounting. Since launch, we posted more than one million jobs and developed career resources to help members and students navigate COVID-19.

As a digital-first organization, we continue to reimagine how we deliver insights, tools and services online. We created a new streamlined digital experience, so members and students can get information quickly and customize it based on their preferences and needs.

We expanded on our Future of Finance series with the Finance transformation: the human perspective report published in partnership with KPMG, examining the impact of digital technology on the finance function and its people. We recently released an update to the report focusing on the pandemic’s effect on digital transformation.

This year, I signed a call to action in response to climate change on behalf of the Association, demonstrating our profession’s commitment to combating climate change and our support of members working to address climate risk.

What is your advice to members and students as they prepare for 2021?

Focus on people.

The strength of the profession depends on our people. So, we must continue building the human resilience needed to navigate through — and beyond — the disruption facing us. Wellbeing and mental health should be top of mind for firms and businesses, particularly as the crisis drags on into the new year.

2020 has reminded us of the importance of our commitment to diversity, equity and inclusion. By tapping into different cultures and perspectives, our profession is positioned to solve even the most complex and challenging issues. The Association is committed to fostering a culture of belonging, and we offer resources, tools and training to help firms recruit, retain and advance diverse talent in the profession.

Adapt and expand your services and focus on value.

Once this crisis has passed, the world will need new and different things from us. The profession is positioned to embrace new and emerging opportunities to deliver value.

We saw tax CPAs take on more planning and advisory services during the start of the pandemic. Formalizing these services can lead to new revenue streams, reduced workload compression and stronger client relationships.

Technology has been transforming our profession for years, and even more so during this crisis. There are opportunities for CPAs to serve clients and businesses through assurance and advisory services in areas such as information privacy, blockchain and cybersecurity.

COVID-19 also heightened awareness for supply chain risk management. CPAs can provide advisory and assurance services on organizations’ systems and controls and help companies assess and mitigate supply chain risks.

There is an increasing demand for companies to demonstrate their commitment to people, community and the environment. CPAs can provide sustainability reporting and assurance, and through integrated reporting, help organizations articulate their value beyond profit.

Commit to learn, unlearn, relearn.

As we learned this year, we must be willing to adapt. That means recognizing the skills we have today may not be enough for the future. In fact, according to the most recent World Economic Forum Future of Jobs report, 44 percent of the skills employees will need to perform their jobs effectively will change by 2025. To reskill and upskill, we must commit to a cycle of learning, unlearning and relearning. We saw through the pandemic the value of being a nimble profession, and this adaptability will continue to be important.

We help equip members and students with the technological and people skills needed for the future through our Go beyond disruption professional development series. In addition, the Digital Mindset Pack, Powered by AICPA and CIMA research, can help members leverage the technologies that are rapidly transforming finance, accounting and tax functions.

Do you have any final thoughts for our members before we close out a truly extraordinary year?

This year was tough for everyone, but it has also provided the profession opportunities to support our clients, businesses and communities in new ways. Accountants are leading in economic recovery efforts, and our ability to do so is because of your hard work. As trusted advisers, you restore confidence amid disruption. Thank you for all you do.

None of us could have fully prepared for 2020, and the path ahead is unclear. While we may not know what is in store for 2021, that does not mean we can stop where we are now. Together, we must reimagine the world we want to create, then build that future.

Barry Melancon, CPA, CGMA, President and CEO of the AICPA and CEO of the Association of International Certified Professional Accountants

     

Related Stories

• 5 free resources to help market your services
• Business funding: A key new advisory category for your firm
• Do THIS — Not THAT in preparation for the upcoming tax season

 

Your to-do list likely includes items such as scheduling next year’s engagements, sending client information requests, preparing for year-end client accounting services processes, gathering and reviewing documents needed for early 2021 and contacting clients to plan for the year ahead. Taking time to market your services to prospects and clients might be missing from your list. We understand that. With so much else going on, this task often isn’t a priority. But we’d like to help you showcase your expertise and the value you provide with our new CPA Marketing Toolkit. Check out the following five marketing resources, included as part of your AICPA membership.

1. Showcase your CPA designation.

These prestigious three letters tell others that you are knowledgeable and experienced in your profession. Did you know that you can use CPA logos in your marketing materials? Why not add a CPA logo to your email signature or feature one prominently on your website or online professional profile? You’ll find several variations to choose from, along with guidance on logo usage.

2. Articulate the value of hiring a CPA.

Use this PowerPoint presentation as you meet with prospective clients. It explains the advantages of working with a CPA and highlights the types of year-round services you provide. 

3. Highlight your offerings during year-end planning conversations.

We’ve developed year-end planning letters to help you start conversations with individual and small business tax clients. These letters feature a list of key considerations for this year that your clients will need to factor in for next year. The letters also lead to more extensive conversations about how you can support your clients.

4. Start strongly during the proposal meeting.

Making a good first impression is important. Use this checklist to make sure you prepare for your next prospective client proposal meeting. Taking time for this pre-meeting activity will help you build strong relationships and help expand your service opportunities.  

5. Talk with small business clients about the benefits of working with a CPA.

Your small business clients will appreciate you sharing this guide that outlines the services you can offer to help them plan, run and grow their business. Plus, there’s a space on the first page of the document for you to add your firm’s logo.

In addition to using the above resources, take your practice to the next level by incorporating the CPA brand into your website URL. Apply for a .CPA domain, exclusively available to CPA firms, and distinguish your services from those of non-CPAs. .CPA is a secure, restricted web domain, making it a harder-to-spoof online identity, allowing you to protect your firm’s data and your clients’ personal information from phishing and other security threats.

Another way to differentiate yourself from others is to strengthen your advisory services offerings by pursuing a credential. This year, you’ve witnessed firsthand how the COVID-19 pandemic paved the way for CPAs to be the trusted adviser for matters other than just tax or audit. Clients wanted CPAs to guide them in areas such as business continuity, economic relief, loan applications, cybersecurity consultations and retirement planning. Why not go further and harness that momentum to display your expertise in a specialty area such as valuation, forensics, financial planning or technology with a credential? 

We hope you find these resources helpful as you communicate with prospects and clients about the value you provide and the opportunities available to expand upon the services you offer.   

Association Staff

     

Related Stories

• Do THIS — Not THAT in preparation for the upcoming tax season
• To avoid tax surprises Americans should update their W-4
• How COVID-19 will affect states’ revenues, taxes and you

 

CPAs are meeting the moment when it comes to small business relief. This is a new advisory service for the profession, one that will last through 2021 and 2022, in terms of lingering pandemic impacts. Beyond that, I firmly believe funding options will continue to be a valuable category for CPAs to explore with their small business clients. To do it right, though, firms need expanded capabilities and tools.

Throughout 2020, the AICPA and CPA.com have been providing resources and guidance to CPA firms on relief developments, particularly those related to the Paycheck Protection Program (PPP). Here’s some of the things we’ve done since March:

• Advocated for fast, effective small business relief both as a solo organization and as the leader of a small business funding coalition we organized
• Offered key advice to Treasury Department and Small Business Administration officials on improving guidance to the PPP and other relief programs
• Stood up a page of valuable PPP resources and recommendations that is constantly updated by experts within the AICPA’s firm and tax management sections
• Organized regular AICPA Town Halls (which offer free CPE for members) on the latest PPP developments and related matters that have provided timely updates and insight to thousands of members each session
• Created calculators for PPP loan applications and PPP loan forgiveness

While all of these steps have been helpful, it became obvious that small businesses and the CPAs who advise them needed more. In July, we partnered with fintech leader Biz2Credit on a free tool to process a master report for PPP loan forgiveness applications. And in September, we worked with Biz2Credit again to create a business funding portal (CPALoanPortal.com) for CPA firms that expect to handle forgiveness applications from multiple clients, as well as new applications from a potential second round of PPP funding.

As Congressional negotiations on business relief advance, we’re advising you to reach out to your small business clients proactively to build up your firm’s capabilities. Once “PPP2” is authorized, something we strongly advocate, that groundwork will pay off.

CPALoanPortal.com has several features that can help, including:

• A free basic service for small businesses or those of you advising only a few clients
• A more robust set of fee-based tools in a single platform to help you manage multiple clients in a standardized way
• Upfront integration with leading payroll providers (with more providers being added regularly) to intake data automatically from official payroll reports
• Access to the power of AICPA technical input and calculators
• Payment of agent fees for firms registered for one of the paid plans available through the platform (assuming this is permissible in PPP2, as it was in the original PPP)

Once the pandemic ebbs, we see the business funding category evolving into a routine part of the advisory services that CPA firms offer their clients. CPALoanPortal.com will evolve, as well. These kinds of tools and solutions will help you deepen your relationships with clients and broaden your roles as trusted advisors.

Erik Asgeirsson, President and CEO, CPA.com

     

Related Stories

• How to audit during a pandemic? You asked. We answered.
• 4 A&A challenges caused by COVID-19
• How COVID-19 will affect states’ revenues, taxes and you

 

Ready or not, tax season 2021 is rapidly approaching. And while we all hope that it will be better than tax season 2020, as John Wooden famously said, “Failing to prepare is preparing to fail.” So, why not hope for the best but prepare for the … unexpected?

In thinking about what you can do to get yourself, your clients and your firm ready for tax season, I asked my #TaxTwitter network for some advice. What kind of advice, you may be wondering?

Wrong advice.

Terrible advice.

On purpose.

Not real advice, because this is 2020 and we all need some healthy sarcasm in our lives, right? Not just me? Good. But along with the off-the-mark advice, I will respond with good advice as well as recommendations for AICPA resources to help you hit the ground running.

Here’s what the voices of #TaxTwitter had to say …

Justin Miller @justinmilleresq

“Good things come to those who wait. #badtaxadvice”

Procrastination can sometimes be rewarded. But this is rarely the case when planning for your financial future. Help your clients understand that major life events present opportunities to discuss tax and financial implications. Flyers on getting married or divorced, welcoming a new child, saving for education and retirement from the new CPA Marketing Toolkit can be great conversation-starters.

 

Jeanne W @JLWCPA2

“You can deduct anything you want under ‘other deductions.’ ”

While there are situations where items can be categorized as “other deductions,” if you think this is a good catch-all, it could be time to take a look at the 2020 Annual Tax Compliance Kit. This toolkit includes engagement letters, organizers, checklists and practice guides to help you comply with tax laws and effectively serve your clients. And may I suggest a refresher of the Code of Conduct and standards?

 

Joe Kristan @joebwan

“Don’t sweat it. 2019 software will work just fine.”

While tax practitioners rely on tax software, there is no substitute for education and knowing the tax laws (and asking for assistance when needed). If you have clients who are still unsure of the value you provide as a CPA, maybe it’s time for you to take a few minutes to enlighten them and share your expertise. Use this presentation as a starting point.

Greg Barnhardt @UpperValleyCPA

“To simplify workflow, request a snap of each tax document and then email it directly to your preparer as a .jpg. — preferably one .jpg per email to prevent a cluster #Yourewelcome.”

While we can all appreciate a great picture or a meme, receiving tax data this way is not optimal nor secure. In an ideal situation, clients would send a 100% complete packet of information the first time. But we don’t live in an ideal world. One idea to help is to start by sending your individual clients a year-end planning letter, which may provide them some ideas about what they should be thinking about. The letter can also reinforce the value of your secure company tools for transmitting confidential documents.

 

Nicole Davis @wifemomcpa100

“Wait until April 15 to send your tax documents to us. We love procrastinators!”

We talked earlier about how planning is the antidote to chaos. Continuing in that vein, your small business clients would likely benefit from a year-end planning letter to help them start moving in the right direction. And if they are moving closer to the deadline in providing documents, you may consider moving them to the “ex-clients” list.

Tax TeleGraf @LoganGrafTax

“Pay the amount due on the IRS notice you received, no questions asked.”

Like everyone, the IRS makes mistakes. And maybe even if they have correctly identified additional tax, a penalty may have been assessed that can be abated due to reasonable cause or first-time penalty abatement procedures. We have templates available that can help you draft a letter to request the IRS take a closer look.

Jeremy Wells, Ph.D., EA @JWellsCFO

“Don’t worry about tax update CPE. The software will figure it all out for you.”

We’ve got you covered if you missed your tax law update course this year because of the 2020 chaos. Register for our Tax Practice Quarterly: 2021 Busy Season Readiness that will take place on Thursday, Dec. 17 (rebroadcasted Jan. 6). Thought leader Tony Nitti, CPA, will get you ready for tax season by discussing topics such as the Families First Coronavirus Response Act, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) and the Paycheck Protection Program (PPP) and Health Care Enhancement Act.

This event is free for AICPA Tax Section members (discounted for AICPA members) and offers two hours of CPE credit. Not already a Tax Section member? Join now for only $160 for the first year ($240 each year after) for over $600 in value.

Mary @AccountingAsArt

“If you’re not sure about an amount, go ahead and let the tax preparer just make up some numbers.”

Ethical issues aside, if this is your line of thinking, take a look at the Tax Section Odyssey weekly video series, which highlights resources available to you, tax research tips and trending tax topics. And yes, there is a tax standard on using estimates.

Liz Farr @liz_farr

“If you got paid in cash, it doesn’t count. If it’s not on a 1099, you can leave it off your return.”

If you have clients that think this way, it’s likely they have received IRS notices. And if they are struggling to pay the tax, there are options. Review the IRS Payment Agreements Guide (an AICPA Tax Section resource), recently updated to include the latest and greatest.

Jeff Kristoff @jckristoff

“Due to the security risks, don’t e-file your return or even use software. It’s best to make sure you or your accountant prepare the return by hand using red ink so the numbers stand out. Since the return is mailed to the IRS, you can just use a regular stamp, but the U.S. Postal Service (USPS) has great holiday options!”

While I especially love the USPS holiday stamps, mailing tax returns that can be e-filed is not a solution, especially while the IRS is still catching up on mail from earlier in 2020 due to COVID-19. Speaking of security, does your firm have a plan for keeping client data secure? Take a look at these best practices that can be implemented as part of your overall security plan. And, document your policies by using our Gramm-Leach-Bliley Act Information Security Plan Template.

Nick Meals @nickmeals

“You think those expenses covered by PPP funds should be deductible? Me too! Let’s deduct them.”

As of the writing of this blog post, the IRS guidance still stands generally requiring non-deductibility of expenses paid with Paycheck Protection Program (PPP) funds if forgiveness is reasonably anticipated. But a great place to keep up with all the latest PPP news is to check out the AICPA’s SBA Paycheck Protection Program (PPP) resources for CPAs and tune in for the AICPA Town Hall Series.  

Hopefully, you weren’t tricked by any of the bad advice and learned about some new AICPA Tax Section resources along the way. We’re wishing you a warm holiday season and the best kickoff to tax season.

And, if you want to connect with me and my peers to share some of your client stories, please follow me on Twitter @aprilshowerstax.

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

     

Related Stories

• To avoid tax surprises Americans should update their W-4
• How COVID-19 will affect states’ revenues, taxes and you
• How to audit during a pandemic? You asked. We answered.

 

The accounting profession has undergone major changes in recent years. New technologies are redefining client expectations and therefore how the profession works. Now, with the pandemic, the need to adapt has accelerated.

The 2020 AICPA Leadership Academy gave 29 young CPAs from firms, businesses and academia across the nation the opportunity to refine and enhance the skills they will need to meet these challenges.

“I now not only have a better understanding of the importance of having a solid grasp on what is going on in my organization and the profession, but also understand how to look at the current state and plan for the future and be ready to adapt,” said 2020 academy graduate Jessica McClain, a CPA with Brand USA in Washington DC.

The AICPA Leadership Academy traditionally is a four-day event held in Durham, NC. Because of coronavirus restrictions, the 2020 academy was held virtually. CPAs participated in interactive workshops on advanced leadership training based on their character strength profiles. The academy included presentations from some of the profession’s top thought leaders, as well as networking opportunities. This year’s class was divided into five cohorts, each with a separate executive leadership coach.

Attendees discussed key issues and interacted with influential leaders in the profession, including Tracy Golden, CPA, CGMA, AICPA chair; Barry Melancon, CPA, CGMA, president and CEO of the AICPA and CEO of the Association of International Certified Professional Accountants; Sue Coffey, CPA, CGMA, AICPA executive vice president — public practice; and Tom Hood, CPA/CITP, CGMA, CEO of the Business Learning Institute.

Josh Russell, a CPA with Patterson, Prince & Associates PC in Florence, AL, said he was surprised by how much all the attendees had in common.

“Whether we came from a large, medium or small firm, industry or organization, we all had many similar successes, struggles, stories, wants and experiences,” said Russell, a 2020 academy graduate. “Sometimes I think we treat public accounting firms like each group is in its own bucket based on size, but we all have things in common.”

Lauren Uraski, a CPA with StoneTurn in New York and a 2020 academy graduate, said the academy helped her understand her values and leadership traits, which will help her relate better to colleagues.

“The feedback through the leadership profiles, plus an awesome coach to learn with, was really eye-opening,” she said. “Knowing my values and tendencies will allow me to be more intentional in my decisions and action.”

One current that flowed under all the discussions was the coronavirus pandemic’s impact on the profession and the greater world.

“COVID was really a catalyst for many changes the profession has been discussing for some time,” said 2020 academy graduate John Confrey, a CPA with Mazars USA LLP in New York. “The profession can sometimes be slow to change, but COVID proved we can be adaptive.”

The accounting profession, particularly for younger CPAs, has a reputation for long, rigid office hours. The pandemic forced firms to adopt remote working and flexible schedules as well as rethink processes and efficiencies.

Some are optimistic that the pandemic will spur the profession to more quickly and readily adopt new technologies into their practices.

“Organizations that had not implemented remote-working technology and digital, cloud-based systems have struggled in this environment,” said Russell. “COVID has shown that we have to embrace technology or risk dying out.”

As the profession and CPA licensure model develop, technology skills will be in greater demand. Confrey said he looks forward to seeing the potential they offer in the profession.

“I see technology as a way to minimize routine tasks, allowing professionals to spend more time using their creative skills to problem-solve for their companies or clients,” he said. “I’m most interested in implementing robotic process automation [RPA] to improve processes.”

Learn more about the AICPA Leadership Academy or apply to be part of the 2021 class today.

You can also stay abreast of the latest trends, technology and topics in the profession through AICPA webinars, such as Robotic Process Automation Strategy for Business Leaders, Blockchain for Financial Advisors and the Data Analytics Executive Program.

Association Staff

     

Related Stories

• To avoid tax surprises Americans should update their W-4
• How to audit during a pandemic? You asked. We answered.
• How COVID-19 will affect states’ revenues, taxes and you