Category: News

There’s no question that this was a tough tax season. And, with the tax deadlines delayed until July 15, it isn’t over. In our recent Tax Section survey, 60% said COVID-19 had an enormous effect on tax season. Practitioners noted the top three pain points related to assisting with the Paycheck Protection Program (PPP), understanding new legislation and guidance and struggling with ambiguity in the relief.

Mainly due to necessity, tax practices significantly changed in 2020 to adapt to the current environment. In a webcast about the evolution of the tax practice, Brandon Lagarde, CPA, JD, LLM, and Jan Lewis, CPA, shared ways their firms try to think differently during this strange time. Here are some key points:

Get up to speed on legislation and evolving guidance.

Information was flying around at a rapid pace during the past few months when CPAs are normally hunkering down and knocking out a lot of work. Clients were anxious and calling their CPA more than ever. Emails were racking up. Firms were trying to make decisions about stay-at-home orders and how that affected working at the office. Timely absorption and dissemination of information were crucial.

Here are some ideas to get yourself, your staff and your clients up to speed:

• Read the law. No, it’s not a summer fiction novel, but by reading the actual legislation, you can identify the gaps and questions.
• Communicate often with your clients; consider providing a snapshot or client letter to discuss the highlights of the new laws and encourage them to contact you to discuss their specific situation. There are many client-facing resources on AICPA Tax Section’s coronavirus tax resource hub.
• Consider hosting webcasts for staff and clients on important aspects of the law. Zoom, GoToWebinar and WebEx are some of the popular options but do research to find your best option. Webcasts explain information quickly and efficiently. Be sure the information is dated because it changes rapidly.
• Another similar option is to record quick videos on topics. When you get client questions, you can direct them to a video rather than explaining for the 100th time how to calculate payroll costs for a PPP loan.

Automate workflow systems and remote working.

If your firm wasn’t set up and ready for a remote work environment before this tax season, the last few months have probably been tough. Once the dust settles, it’s a good time to consider firm processes and documenting them appropriately. Consider these questions:

• Is your practice operating in the cloud or does it use a virtual private network (VPN)?
• Does your firm have an automated workflow system?
• Is there a client portal for secure information transfer?
• What manual processes in the firm’s workflow can be automated?

Billing policies

Now may a good time to revamp your billing policies. Try noodling on a few of these ideas:

• Does your practice accept credit cards or have a way to pay via bank transfer?
• Would a subscription-based model help with cash flow for both the firm and clients?
• Have you considered providing an alternative for clients to pay in installments?
• Are you frequently contacting clients to gauge if they are having issues paying you or other service providers? Working out payment plans early is always preferred.

Manage remote employees.

Many people likely dabbled with working from home before COVID-19, but the stay-at-home orders made it a necessity. Many factors led to working from home during this time to be different, but there were employees who likely thrive in this environment. This could be a good time to formalize staff policies for remote working. That includes communicating clear expectations, frequent check-ins (consider video check-ins) and adding flexibility for different situations. 

Planning for the rest of 2020’s paid time off (PTO)

Mental breaks and vacations are important. It may be challenging to plan a vacation in this time of the unknown. But if employees do not take paid time off, the end of the year may roll around with some of them having a lot of “use-it-or-lose-it” PTO hours. December can be a busy time for year-end planning, and it isn’t a good idea for employees to take three weeks off in December to use their PTO. Consider asking staff to plan for time off between now and the end of 2020 based on the best knowledge available.  

Plan for contingencies and getting back to the office.

Your firm may have had an emergency plan in place before the outbreak of COVID-19. If so, kudos are in order. If not, now would be a good time to create a plan. Consider all the steps necessary to maintain business operations and a rapid response plan to deal with any situation. As businesses start to reopen and establish a new normal, consider surveying employees to determine their specific concerns and needs. Be sure to think about the risks associated with bringing employees back to the office.

Business advisory services

As tax professionals, you likely know more about Small Business Administration (SBA) loans than you ever thought you would. Given this difficult economic environment and all the uncertainty surrounding small businesses, clients need CPAs now more than ever. Have deep conversations with your clients about their needs. Guide them during difficult conversations related to cashflow planning. Now may be the time to consider adding client accounting services (CAS) since it is so important to make decisions with reliable accounting data.

It’s a wrap, or is it?

All things considered, you’ve weathered the past months and still have more to do. Adjusting to this new environment of running your practice will be a challenge. But, with a little strategic planning and organization, you can continue doing great things for the rest of the year.  

April Walker, CPA, CGMA, Lead Manager — Association of International Certified Professional Accountants

     

Related Stories

• Bouncing back: How to recoup after a busy season
• The tax season in the Upside Down
• 6 ways CPAs are making a difference right now

 

On Wednesday, May 20, we took a big step toward propelling the CPA profession into the future.

If you read the blog posts I wrote in January, May and July of 2019, you’ll be familiar with CPA Evolution — a joint effort of the AICPA and the National Association of State Boards of Accountancy (NASBA) to design and implement a new approach to CPA licensure.

Our goal is to transform the CPA licensure model to recognize the rapidly changing skills and competencies the practice of accounting requires today and will require in the future.

In January 2020, I shared how NASBA and the AICPA are proposing a core + discipline model for CPA licensure.

In this proposed model, all candidates would be required to demonstrate knowledge of a strong core in accounting, auditing, tax and technology. Then, each candidate would choose a discipline in which to demonstrate deeper skills and knowledge. Regardless of discipline, this model leads to full CPA licensure, with rights and privileges consistent with any other CPA. You can learn more about our proposed CPA licensure model at EvolutionOfCPA.org or by watching the video below.

On May 20^th, AICPA’s Board of Directors recommended that the AICPA Council vote on a resolution supporting the CPA Evolution initiative. I’m thrilled to share that Council overwhelmingly voted in support of advancing the initiative.

This is great progress toward our goal of positioning the CPA profession for continued strength and relevance in a constantly evolving business environment. I would like to thank the Board and Council for their leadership and guidance since the inception of this initiative.

Pending conversation in June at the NASBA regional meetings with state board of accountancy members, NASBA’s board of directors will consider a companion vote of support this summer. If that occurs, we will move forward with implementing the new licensure model, with the goal of launching a new CPA Exam by January 2024.

I want to say thank you to all of you.

Back in 2018, we began reaching out to stakeholders from across the profession asking for feedback on evolving CPA licensure. Since then, we’ve heard from more than 3,000 of you — CPAs working in firms of all sizes across the country; CPAs working in business and industry; members of the accounting academic community; volunteers; students; technology experts; state CPA society leaders; state boards of accountancy; and more.

It’s clear that you all are passionate about our profession and keeping it strong for decades to come.

We’ve come a long way since we shared an initial concept for CPA licensure in 2018, and your input shaped the licensure model NASBA and the AICPA proposed to Council.

Thanks to you we were able to develop a model that will position the profession well for the future.

As we look forward to the NASBA regional meetings and the NASBA board of directors vote this summer, I have never been more excited to be a part of this profession. I am hopeful that we’ll gain the support we need to continue moving forward with evolving CPA licensure. Regardless of the outcome, we will always continue to support the CPA profession and work toward its continued success.

Susan S. Coffey, CPA, CGMA, EVP — Public Practice, Association of International Certified Professional Accountants

     

Related Stories

• Preparing accounting students for a changing profession
• Our proposal to evolve CPA licensure
• Accounting firms lead the way to a more diverse business environment

 

The cryptocurrency market — such as bitcoin, ethereum and others — has taken hold in the financial world, with the market now worth more than $200 billion and growing daily.

With so much money at stake, it’s no surprise that bad actors find new ways to use the system to their financial advantage. In 2019 alone, an estimated $4.26 billion in cryptocurrencies was lost due to hacks, cybertheft, scams, misappropriation or insider fraud, up about 250% from 2018.

“With traditional money in our banking system, there’s a paper trail, a record of transactions,” said Mark DiMichael, CPA, CFF and forensic specialist with expertise in cryptocurrencies. “With cryptocurrencies, there is no paper trail. You can move large amounts of money without having to carry around a duffel bag of cash. It could be carried on a thumb drive or sheet of paper.”

That lack of a paper trail gives scammers more opportunity to embezzle funds, rip off investors or steal cash. Still, forensic accountants and financial investigators are finding new ways to track and trace cryptocurrency transactions and reduce the fraud opportunities.

What are cryptocurrencies and why do people use them?

Cryptocurrencies offer the facilitation of digital transactions without government interference or oversight. Bitcoin, the first cryptocurrency, was created in 2009 by Satoshi Nakamoto — a still unknown person or persons — as a system of money by the people, for the people. Cryptocurrencies are held in “wallets” that can take the form of a software application, a hardware device or a physical piece of paper. Cryptocurrency transactions are visible on a public online database or “blockchain.” The blockchain shows the cryptocurrency in account numbers called “addresses,” which are often a complex string of about three dozen numbers and letters.

The currencies are based on blockchain technology, and those who create — or mine — new blocks are rewarded with cryptocurrency for their work. Blockchain is largely presumed to be completely secure. It uses a distributed ledger system that essentially requires all participating networks to agree to any new inputs, and previously recorded transactions cannot be altered. Once created, cryptocurrencies can be used to pay for goods or services or traded on exchanges like any other currency.

DiMichael says that building a block is like baking a cake. Once it’s baked, you can’t go back to add more sugar. Similarly, once information is added to a block, it cannot be altered or deleted, unless all participating networks agree.

How are cryptocurrencies used in fraud schemes?

Still, the nature of cryptocurrencies and their complex cyber ecosystem offer ample opportunity for bad actors to engage in criminal enterprises or take advantage of others.

Some of the more prevalent cryptocurrency fraud scams are:

• Investment and Ponzi schemes — As with other securities, perpetrators of these schemes dupe individuals into investing in non-existent cryptocurrency funds or cryptocurrency-backed securities. They may also try to enlist investors into mining operations to create new cryptocurrency and claim to use funds to purchase expensive, high-power computer systems capable of building blocks in exchange for cryptocurrencies.
• Embezzlement — The QuadrigaCX case is perhaps the most notable incident of cryptocurrency embezzlement, as the exchange manager stole investor funds to support a lavish lifestyle. The scheme unraveled when the perpetrator reportedly died while on a three-month vacation in India, taking the passwords to the digital wallets with him. Investigators question whether the money was ever invested in cryptocurrencies.
• Phishing — Cryptocurrency wallets are only as secure as the passwords protecting them. Through phishing scams, fraudsters trick individuals into sharing passwords, which allows access to cryptocurrency wallets to steal funds.
• Ransomware — Hackers are increasingly targeting computer systems for takeover and offering access back only upon a ransom payment. In most cases, the hackers demand payment in cryptocurrencies to avoid being traced or arrested.

Once a person has taken another’s cryptocurrency, little  can be done to reclaim it, says DiMichael. The funds can be routed to a variety of wallets, moved to another country, run through a laundering service or cashed out into fiat currency.

Beyond theft and scams, some individuals try to use cryptocurrencies to hide funds from the government and others.

Tax fraud is perhaps the most prominent example. The IRS announced in 2014 that it would tax cryptocurrencies as property, and added a question for tax year 2019 about whether individuals transacted in any cryptocurrencies that may be taxable. Still, some believe they can use cryptocurrencies to hide income and funds.

Divorce lawyers are also reporting more spouses try to hide funds in cryptocurrencies to prevent having to share with their soon-to-be ex-spouses.

How can forensic accountants investigate cryptocurrency fraud?

Forensic accountants and other financial investigators are learning new tricks to better track cryptocurrencies. Clustering is a technique in which an investigator analyzes the blockchain to determine which addresses are connected.

“It’s a long, slow process,” DiMichael said of clustering. “Once you know a person’s wallet address, we can start to see the flow of money. But, it’s possible for savvy cryptocurrency users to break the trail.”

Rather, DiMichael and others warn people involved in cryptocurrencies to stay ahead of relevant fraud schemes to avoid having to track down and find stolen money. 

Learn more about schemes used to defraud cryptocurrency investors, as well as the limited regulations around cryptocurrencies and tips for how to “follow the money” in a cryptocurrency exchange. The AICPA’s Forensic and Litigation Services (FLS) Fraud Task Force’s latest Eye on Fraud report, Cryptocurrencies: Forensic techniques to meet the challenge of new fraud and corruption risks, discusses the variety of schemes used to defraud investors and what CPAs and forensic accountants need to be aware of as this new market emerges.

Association Staff

     

Related Stories

• Preparing accounting students for a changing profession
• Accounting firms lead the way to a more diverse business environment
• Bouncing back: How to recoup after a busy season

 

We are in an unprecedented time of change for the accounting academic community. I’ve seen a fire lit beneath educators the likes of which I’ve never seen before as it relates to evolving their classrooms and curricula. Accounting programs have had to quickly make changes, like adapting to full-time remote learning almost overnight in response to the coronavirus pandemic, as well as longer-term changes to ensure programs are preparing the next generation of accountants for the realities of a rapidly evolving business environment.

Research conducted by the AICPA found that public accounting firms are hiring fewer new accounting graduates. Instead, they’re hiring more non-accounting graduates who possess different skill sets, particularly those related to technology. Practitioners are increasingly advising schools that accounting curricula need to help students gain a better understanding of technology and its applications within the profession.

And it’s not just technology impacting the profession — our roles as CPAs have evolved as well. When I began my teaching career in the mid ‘90s, accounting students generally chose between studying audit or tax for public practice. That’s not the case anymore. Now, students are graduating straight into specialized roles in areas such as business valuation and forensic accounting.

Accounting academic programs must consider whether or not they are equipping students with the skills and knowledge CPAs need in today’s business environment. And they also need to consider if they’re adequately preparing students for the roles they may have once they graduate.

Evolving accounting curricula as the profession evolves

When I was the Director of Accountancy at Wake Forest University, I saw students graduate from our program — in which they chose between an audit track and a tax track — and enter roles more diverse and evolved than just “audit or tax.” Our students were being hired directly into some specialized roles, so our faculty wondered if we could do a better job as an academic institution in preparing them for those roles.

The faculty recognized that the profession and the skill sets some of our students needed had changed, so our program and curriculum needed to change as well. We altered our accountancy program tracks to mirror what we saw happening in the profession. Instead of just offering audit and tax tracks, we evolved to assurance services, tax consulting and a newly created financial transaction services track.

The result was that students obtained the skills and knowledge they needed to meet the needs of the marketplace. This evolution was a success for our program.

Now we, as an academic community, have the opportunity to achieve similar success at a much broader level.

The CPA Evolution initiative

That’s why the AICPA, in partnership with the National Association of State Boards of Accountancy (NASBA), created CPA Evolution, an effort to transform the CPA licensure model to recognize the rapidly changing skills and competencies accounting requires today and in the future.

NASBA and the AICPA are proposing that CPA licensure moves to a “core + discipline” model. The proposed model starts with a strong core in accounting, auditing, tax and technology that all candidates would be required to complete. Each candidate would then choose a discipline in which to demonstrate deeper skills and knowledge. Regardless of chosen discipline, this model leads to full CPA licensure, with rights and privileges consistent with any other CPA. You can learn more about the proposed model in this blog post and the CPA Evolution FAQs.

The AICPA Council will vote on May 20 on a resolution supporting the CPA Evolution initiative. NASBA’s board of directors will be asked to pass a companion vote of support in July. If the AICPA Council and NASBA’s board of directors support the initiative, we will move forward with implementing the new licensure model. Pending that support, our goal is to launch the new CPA Exam by January 2024.

Supporting educators through CPA Evolution

We recognize that this will be a big change, particularly for smaller colleges and universities. That’s why the AICPA is committed to helping accounting programs prepare for the new licensure model by developing the resources educators need to position their students for success. We’ve been actively working with the academic community to identify the resources they’ll need to make this transition, such as model curricula, bridge resources focused on technology integration and a model internship framework. We’ll also conduct a gap analysis to determine the differences between what is being taught today and what might be tested on the Exam under CPA Evolution.

This is an exciting time to be part of the CPA profession and the accounting academic community. I truly believe CPA Evolution and the resources the AICPA are developing for educators will help curricula reflect the needs of the profession, integrate skills the profession will need in the future and position accounting programs as a valuable option for students choosing their career paths.  initiative, visit EvolutionOfCPA.org.

Yvonne Hinson, CPA, CGMA, Ph.D., AICPA Academic in Residence, Association of International Certified Professional Accountants

     

Related Stories

• Bouncing back: How to recoup after a busy season
• More than a sense: 5 innate tools to reduce stress
• Accounting firms lead the way to a more diverse business environment

 

There are a lot of unknowns related to the COVID-19 crisis. Your clients may be feeling stressed and even uncertain about their financial future, and are likely asking questions:

• When will things stabilize?
• When will the market volatility be behind us?
• How will my retirement goals be impacted by everything going on?

Although no one has all the answers, as a CPA financial planner, you have a strong relationship with your clients, vast knowledge of tax and planning strategies and you offer objective advice that is in your clients’ best interest.

It’s important to proactively talk to your clients about their concerns and fears, connecting with them by carefully listening and then guiding them as you’re so well-equipped to do.

I’ve been reaching out to my clients to see how they are coping, so that I understand their top concerns.

Retirement concerns are high on the list.

Client’s question: As you know, I’m retired and you’ve mentioned a lot lately about extended tax deadlines, waived required minimum distribution (RMDs) for 2020, and the planning we can do around that. What do you suggest?

Advice: It’s certainly been a busy year regarding IRS action. As we discussed, since you owe for federal and state income taxes, I would not recommend filing/paying until early July. Had you been due a refund, however, I would encourage you to file as soon as possible.

Another planning aspect is the ability to waive RMDs for 2020. As a general rule, unless someone needs the money for living expenses, you should accept the government’s gift of an extra year of tax deferral within your retirement accounts. This also applies to your Inherited IRA RMD for 2020.

However, because you don’t need your RMD proceeds each year for living expenses, it presents an interesting planning opportunity to potentially convert some amount of that waived RMD to your Roth IRA. Because you’d be paying ordinary income taxes on the entire RMD amount in a typical year, you could convert that same amount to a Roth and the money would grow tax-free for the rest of your life. Thereafter, your heirs would enjoy tax-free distributions as well.

Client’s question: Given the recent market downturn, I look at my portfolio assets and worry. Will I have to work longer?

Advice: All along, we’ve been helping you plan for challenging times like this! Recall that when we began working together, we built — and have since maintained — your long-term cash flow projection. We developed a diversified portfolio that took into consideration your time horizon, risk comfort-level and retirement goals. We keep multiple years’ worth of living expenses in cash/bonds which means we won’t need to sell equities in a temporarily depressed market just to fund your retirement needs. We’ll continue to evaluate things and will make changes to your portfolio as needed.

Client’s question: My son lost his job during the COVID-19 crisis and is struggling to support his wife and two children. My wife and I would like to help. Is there anything we can do that won’t materially affect our retirement plan?

Advice: Parents having to step in and assist adult children during this very trying time has become a common occurrence. Luckily, your retirement is in good shape and you have the wherewithal to assist financially. Helping your son could be in the form of either a direct gift or intra-family loan.

A direct gift allows you to gift $15,000 each to him, his wife, and each of their two children. Your wife could even do the same for a total gift of $120,000.

An intra-family loan would necessitate a promissory note whereby there is a documented payback schedule and a required minimum interest rate. The Applicable Federal Rate (AFR) is set by the IRS, and fortunately, they are at historic lows. For instance, a 5-year loan could have an interest rate as low as 0.58% according to the May 2020 schedule. We can discuss a reasonable amount to gift or loan in the context of your overall financial plan.

Preparing for retirement can feel daunting. Your role is key.

• The coronavirus (COVID-19) personal financial planning resources — podcasts, videos, webcast recordings and more — are available to help.
• The Tax and financial planning tips: Retirement highlights important tax implications — share with your clients.

As a CPA financial planner, you provide such a valuable service, advising clients and easing anxiety during uncertainty.  Don’t overlook the dramatic impact you can have now by connecting with your clients and finding out what’s on their minds.

Michael Landsberg, CPA/PFS, Principal, Homrich Berg Wealth Management based in Atlanta, GA.  Michael engages in comprehensive financial planning and investment management for high net worth families across the country.

     

Related Stories

• The tax season in the Upside Down
• COVID-19 creates 11 new state tax issues
• Bouncing back: How to recoup after a busy season

 

The U.S. population is growing increasingly diverse, and the U.S. Census projects that minority populations will comprise more than half the population by 2045, with the largest growth among multiracial individuals.

Accounting firms are leading the charge in supporting a more diverse business environment.

The CEO Action for Diversity & Inclusion initiative, launched by PwC, has drawn commitments from more than 900 CEOs to initiate meaningful and complex conversations about diversity and inclusion, address unconscious bias and improve diversity and inclusion throughout their organizations. The Association of International Certified Public Accountants, combining the strengths of the AICPA and The Chartered Institute of Management Accountants (CIMA), has signed the CEO Action pledge.

The AICPA is a leading advocate for diversity and inclusion, offering tools and resources for firms to enhance their efforts in this area. Among the tools is the Accounting Inclusion Maturity Model (AIMM) which helps firms track and rate their diversity and inclusion efforts.

To get a better sense of how this model helps firms, I spoke with Kristin Seeger, CPA and director of talent acquisition at Kreischer Miller in Horsham, PA. Kreischer Miller was one of the first firms to use the AIMM.

Why does diversity matter to you and Kreischer Miller?

Kreischer Miller has always worked hard to be an inclusive firm because we recognize the importance and the value of having a diverse workforce—not just to our culture and our team members’ success but also to our firm’s bottom line.

Studies show that diverse firms are more effective and more profitable.

If you look at the population of people coming into the profession in recent years, they are increasingly diverse and approximately half are women. As the head of recruiting, I must be cognizant of this evolution and help make sure the firm is an appealing employer to the next generation of CPAs.

What inspired Kreischer Miller to use the Accounting Inclusion Maturity Model?

We’ve made a commitment to purposefully focus and grow our diversity and inclusion efforts.

We have routinely conducted joint presentations at colleges with the accounting association Beta Alpha Psi, the National Association of Black Accountants (NABA) and Ascend, which represents Pan-Asian accountants. We were selected to co-sponsor of the AICPA’s inaugural George Willie Scholarship & Internship Program to help fund the education of a minority student and provide him or her an internship. And we were selected for the Pennsylvania Institute of CPA’s pilot program for diversity and inclusion.

We’re focused on employee retention and ensuring all our team members are happy and fulfilled in their roles, and we wanted an outside perspective to better understand what we were doing well and where we could continue to improve.

The AIMM process brought to light several things we had not thought about. The insight was so valuable, we’ve gone through the model twice over the past 12 months.

What areas did the Accounting Inclusion Maturity Model highlight for you?

The process made us realize that gender — in addition to race and ethnicity — must be included in the diversity definition. We conducted salary assessments to ensure that males and females are being paid equitably and have the same opportunities for advancement. We still haven’t reached equality at our most senior level, but we have moved closer to equity at the director level, which is a good sign that we can reach equality at the partner level.

Also, we had previously lost a few great female future leaders, and we wanted to make sure we did a better job of keeping them going forward. We asked women in the firm what would help them feel more fulfilled in their jobs, and we were able to stem the tide in part by offering part-time and flexible work arrangements.

What areas of improvement did you discover?

One area where the AIMM showed us lacking was in our suppliers. We had never considered the diversity of the organizations we work with and support, so that is something we are looking into now.

That also led us to take a fresh look at our approach to recruitment. We’ve typically sought candidates from our staff or partners’ alma maters. Now, we are broadening our reach to ensure we have a more diverse recruitment effort.

How have things changed at Kreischer Miller since completing the Accounting Inclusion Maturity Model?

As I mentioned, we’re evaluating our suppliers and where we recruit new hires to ensure we are working with other organizations that also prioritize diversity and inclusion and to seek new employees with diverse backgrounds

We’re implementing new processes, procedures and formal training to promote diversity and inclusion within the firm. For example, we’re establishing programs in which partners and senior leaders reach out to new employees to introduce themselves and begin building a professional and amicable rapport. Diversity and inclusion efforts must come from the top, and these meetings set the tone for our team members and give everyone — regardless of their level — access to our senior leaders.

Would you recommend the Accounting Inclusion Maturity Model to others?

Absolutely. The process showed us where we needed to focus our efforts.

Building a diverse and inclusive organization is a journey, and these steps will help us continue to progress on that journey.

The AICPA staff were open to discussions and walked us through our results to help us understand where we were succeeding and where we needed improvement. I look forward to completing the AIMM process in the future to see the progress we’ve made and to fine tune policies and initiatives, as we work to become an even more diverse and inclusive firm.

The AICPA’s Accounting Inclusion Maturity Model is free for member firms to use. If you have questions about the process, you can reach out to Shelly Frazier at shelly.frazier@aicpa-cima.com. Also, the AICPA offers several resources for helping firms improve their diversity and inclusion efforts, and for regular updates on diversity and inclusion news from the AICPA, sign up for the Inclusion Solutions newsletter.

Association Staff

     

Related Stories

• Bouncing back: How to recoup after a busy season
• Learning from disruption: Reflections from AICPA Chair
• 6 ways CPAs are making a difference right now

 

When this extended busy season ends, we’ll notice summer days feeling warmer and brighter. When crossing that proverbial finish line, I acknowledge freedom that leaves me feeling spacious, accomplished and abundant. Busy seasons (especially this one) can be hard, but we all come out a little stronger, wiser and more learned each year.

Once you feel this freedom, do you ever feel a little confused about what to do with this free time? Before you rebound to the nearest couch for a Netflix marathon, restore your body, mind and soul. 

I’m no Dave Brubeck, but today’s post includes my rendition of “Take 5.” I invite you to explore my Take 5 Method to come alive again. You dedicate a lot of time, energy and knowledge to your work. After the busy season, give yourself permission to be selfish during this transition time and prioritize what brings you back to YOU.

Are you thinking, “I’ve been gone so long, how can I be selfish?” Consider the quote, “Be selfish to become selfless.” By caring for yourself today, you’re setting yourself up to be a better colleague, family member and contributor in society.

The Take 5 Method

1. Take time to celebrate.

Before we go further, take a moment to recognize your dedication and hard work over the past several months. Every busy season has its challenges and your contribution affected the final output. Go you!

Empowered action: Do a happy dance, book a spa day, go outside for a run or do whatever feels good to celebrate all you accomplished. Also, while everything is fresh in your memory, now is a great time to draft your self-evaluation and honor your positive efforts.

2. Take a break.

After working long nights and weekends, I highly suggest taking a few consecutive days off to do something that makes your heart feel good. It doesn’t matter what you’re doing, but you should try to refrain from work email. (Besides, it’s not taking a break if you’re still connected!)

In busier periods, it can be routine to check work email. But truly disconnecting from work is the difference between feeling refreshed and feeling frustrated. It’s important to enjoy a relaxing vacation without stressing about work.

Empowered action: Set expectations with your team well in advance. Find coverage to answer email while you are out of the office. If impossible, see how you can limit work during your time away. In my CPA days, I would advise my team to text me in the event of an emergency; otherwise, I didn’t look at my email. That way, I had permission to refrain from scanning my inbox and a clear process in place to support the team in an emergency. This sets a clear boundary and also makes you a team player. (Bonus tip: Make sure your out-of-office message includes a contact person in the event of an emergency.)

3. Take the initiative to rekindle the spark with loved ones.

While you’ve been working, your loved ones missed you. Post-busy season is a nice time to show affection to family and friends. I like the idea of sending postcards or personalized letters. It can be a short, yet sweet way to let someone know that you care about them.

Empowered action: Come home early to make a homemade meal, clean the house or find other ways to support friends and family with simple acts of service. This is your thank you to loved ones for supporting you during your time of need. Acts of service also help loved ones feel at ease knowing that you’re back in their lives and able to contribute again. Small gestures often mean the most.

4. Take control (of you).

Now’s the time to deploy the healthy routine you’ve wanted that you might not have had time for during the busy season. Before you easily fall into the habit of sleeping in or scrolling on social media, take control of your health. Go for daily walks, cook healthy, home-cooked meals or create a personal stress management strategy.

Empowered action: With warmer weather and an early sunrise working in your favor, summer is a great time to seize the day. There’s no better time than now! If that’s what you desire, but you’re feeling stuck or unclear about where to begin, seek support. Contact a coach, mentor, guide or trusted friend to empower you to live a life that has meaning, fulfillment and great health.

5. Take two.

Now that you have a moment to yourself, begin to look forward. Today is always a second chance to live a more aligned life.

What do you desire over the next 6–12 months. What are the small steps you can implement now to make that happen? Maybe you want to finance your first home or prepare for that promotion. It’s a perfect time to look ahead and set yourself in the right direction. Even a boat sailing 1 degree off course will not make it to the final destination. You must know exactly where you’re going and devise a plan of action to get there.

Empowered action: Create a post-busy season journal about what you achieved, what you realized and what you’d like to do differently next year. Create a goal plan that aligns with your personal, professional, health, relationship and financial goals for an incredible finish to 2020.

After taking 5, I guarantee that you will feel refreshed and ready for what’s next. When I coach my clients through the Take 5 Method, they come back to their personal and professional lives feeling more fulfilled, inspired and content.

If I can offer any advice, it’s to TAKE ACTION! This Take 5 Method is powerful and simple. There’s no perfection needed to relax, restore and to feel more like you. Inside your heart, you know exactly what’s needed to feel rejuvenated after months of working hard. Whether you invite one or five of the actions into your life, know that you are taking a positive step in the right direction.

As the year rolls forward, commit to doing something different. Make a sacred promise to yourself. Don’t just bounce back after a busy season; commit to a thriving comeback and watch how your world positively unfolds!

Lauren Baptiste is an Executive Wellness Coach, breaking-through the effects of workplace burnout. She founded Acheloa Wellness, a firm that empowers ambitious, hard-working women with the tools and techniques to be successful in today’s world. Lauren is practiced in Ayurveda, hormonal health and healing arts and is also a CPA with more than 10 years of experience in the corporate environment. 

     

Related Stories

• The tax season in the Upside Down
• COVID-19 creates 11 new state tax issues
• More than a sense: 5 innate tools to reduce stress

 

Healthcare and frontline workers have the daunting task of keeping communities safe, clean and fed. We salute them. Accountants and finance professionals have the responsibility to lead businesses through the economic recovery.

You’re needed now more than ever. Here are six ways you’re making a difference.

1. You help small businesses stay afloat and preserve jobs.

Small businesses are dealing with a multitude of COVID-related problems and are relying on your expert advice, including understanding the details and application process for the Paycheck Protection Program. In this podcast, experts untangle key parts of the application, and the Town Hall Series: CARES Act and Paycheck Protection Program offers up-to-the-minute news on PPP and the CARES Act.

With things changing quickly day-to-day, it can be hard to keep up. The AICPA Coronavirus Resource Center can help by delivering the latest news, tools and resources.

2. You assist community members most in need of financial assistance.

The U.S. government issued stimulus checks to eligible Americans, but certain individuals who didn’t file a 2018 or 2019 tax return will need to fill out an online form. CPAs are helping their communities by sharing the information with individuals and non-profits that interact with people of low socioeconomic status. Here are instructions to help non-filers.

3. You help people navigate the financial impacts of this crisis.

If you’re a CPA financial planner, you’ve likely spoken to a few panicked clients recently and have been the calm, reasonable voice of reassurance.

No one can predict the rise and the fall of the market, but there are smart money strategies that serve as the foundation for a long-term plan. Hear from top experts on topics — Roth conversion or rebalancing and refinancing and more — in these personal financial planning podcast episodes. Additionally, the coronavirus personal financial planning resources will inform you, allowing you to communicate with your clients and reinforce your role as a trusted adviser during this time of uncertainty.

4. You will lead the recovery efforts for your organization.

Organizations look to the finance function to provide strategic guidance that will lead them successfully out of this crisis. If you’re a CPA or CGMA designation holder working within a business, you’re likely managing liquidity stress, mitigating supply chain risks and rethinking your organization’s business model to identify alternative revenue opportunities. You’re probably also implementing contingency plans to help your company operate in the new normal.

COVID-19 Management Accounting resource page provides links to relevant FM Magazine articles, podcasts and upcoming events, and offers tools and resources to guide you:

• Risk Management Toolkit
• CGMA Risk Heat Map
• Audit Committee checklist

5. You warn clients about fraud and cybersecurity issues.

Fraudsters are taking advantage of the current environment and launching elaborate schemes to deceive innocent people out of much-needed funds. Scams include planting Malware, Ransomware attacks, government employee impersonation and fake websites to solicit charitable donations.

CPAs who earned the Certified in Financial Forensics credential or Certified in Information Technology credential are especially sought out for expertise in preventing, detecting and investigating COVID-19 schemes.

You help clients by paying attention to the constantly changing landscape, sifting through volumes of information and using insight and knowledge to give them solutions to avoid fraud and cybersecurity issues.

• This podcast discusses how accountants can identify and prevent coronavirus-related fraud.
• These sites — coronavirus forensic and valuation resources and the coronavirus technology resources— offer additional helpful information.

6. You help clients measure the financial impact of COVID-19 on their businesses.

As the response to the global pandemic evolves, Certified in Financial Forensics and Accredited in Business Valuation credential holders will be the key to recovery. Clients and employers will need assistance with business interruption and economic damage claims, valuation assessments and possibly, bankruptcy.

We appreciate what you’re doing for economic recovery. With things changing quickly day-to-day, we know it can be hard to keep up. The AICPA Coronavirus Resource Center delivers the latest news, tools and resources.

CPAs and CGMAs are a powerful force for good. Your financial expertise and skills are exactly what businesses — and our global economy — need to recover. Thank you again for everything you do.

Association Staff

     

Related Stories

• Small businesses should focus on PPP’s intent, keep using funds
• The tax season in the Upside Down
• Don’t get scammed out of your stimulus check

 

While your day-to-day routine may have changed in the last few months due to COVID-19, your meetings probably haven’t fallen off your calendar. Many organizations are turning to virtual meetings, utilizing cameras and audio connections to keep work going and employees engaged. 

Just because you’re at home and without a studio doesn’t mean you can’t look your best. Our Multimedia team put together a video with three key things you need to master to keep yourself looking and sounding good. Here’s what they said:

1. Who said looks don’t matter? When your video comes up on your colleagues’ screens, you want to make sure that you look professional and polished. Start with your set-up. Your background should look tidy and professional — with no visual “noise” to distract people. If you chose to use a virtual background, select one that is clean and simple. The AICPA has made some available for you!

While work attire has become increasingly casual amid this pandemic, it’s still important to maintain your professional image. Take a few minutes to brush your hair and change into atop before your first video call of the day. If you tend to be a bit shiny, use a few pats of powder to reduce the glisten.

2. Bring your light and let it shine! Lighting is crucial to a quality video call. Luckily, you already have everything you need. Utilize natural light by sitting in front of a window. If the sun isn’t shining, you can turn on an overhead light or a desk lamp.

If you’re ready to take your light game to the next level, you can purchase a low-cost LED ring light or a standing lamp.

3. Say it loud and proud. The last thing you want to hear after all the time you spent making your video look great is, “We can’t hear you.” Conduct your calls in a quiet room to help eliminate background noise. Let your family know you need an hour of quiet time and put the dog or cat somewhere else.

Ideally, you’ll use a headset or headphones that have a mic included. If these are not available, check that your room doesn’t make you sound like you’re in a can. Try a room with carpet and soft furniture. These will absorb some of the sound and eliminate the echo. If you’re sitting in front of a window, close it to prevent a breeze hitting your mic.

Using these tips, you’ll be a videoconference pro. If you’re ready to take your virtual presentation skills to the next level, check out these human intelligence tips you can implement at your next meeting.

We know that adjusting to new ways of working can be tricky, and we’re here for you during this time of uncertainty. For more resources, visit the AICPA Coronavirus Resource Center.

Association Staff

     

Related Stories

• The tax season in the Upside Down
• Zoom virtual backgrounds for CPAs
• Don’t get scammed out of your stimulus check

 

Do you remember playing the telephone game in elementary school? I’ll spare you the rules. But, in the end, the game exposes the way information mutates after numerous people filter it. As information about the Small Business Association’s Paycheck Protection Program rolled out, it quickly started to feel like a large game of telephone with misinformation floating around rampantly. Small businesses are extremely vulnerable during these times and cashflow is top of mind for every CPA and their client. Nobody can afford to live with confusion around a program promising direct relief. Let’s address a few pieces of PPP information — or misinformation. See if you can guess if the following are MYTHS or FACTS:

1. You can only receive one SBA loan at a time, so PPP applicants must rescind other SBA loan applications.

MYTH — Borrowers may apply for the PPP and other SBA financial assistance, including disaster loans and Section 7(a) loans. However, you cannot use PPP proceeds for the same purpose as your other SBA loan(s). Loan proceeds need to cover payroll for a different period or other qualifying costs. This includes the up to $10,000 grant available with Section 7(b)(2) loans — Economic Injury Disaster Loans (EIDL).

2. The employers’ share of payroll taxes increases payroll costs.

MYTH — The employer’s share of payroll taxes don’t increase payroll costs and taxes imposed on an employee don’t reduce them. Payroll costs are calculated on a gross basis without regard to federal taxes imposed or withheld, including FICA and Medicare.

3. $10 million is the maximum amount that can be borrowed.

FACT — Businesses can borrow the lesser of $10 million or 2.5 times the amount of their average monthly payroll costs. If there is an outstanding amount of an Economic Injury Disaster Loan (EIDL) made between Jan. 31, 2020, and April 3, 2020, that can be refinanced into the  the PPP loan at the borrower’s discretion. If the borrower chooses to refinance and received an emergency grant of up to $10,000; the grant portion must be excluded from the refinance as repayment of this amount is not required.  The interest rate will be 1%. The maturity of the loan is two years. Payments are deferred for six months following the disbursement of the loan. Interest will accrue on the loan beginning with disbursement.

4. You can use the PPP loan for rent payments for self-employed individuals.

FACT — Yes, it’s acceptable to use funds for self-employed individuals for business rent payments. Other acceptable uses include:

• Business utility payments
• Owner compensation replacement (calculated based on 8/52 of 2019 net profit from Form 1040 Schedule C)
• Employee payroll costs (as defined by the interim rule)
• Business mortgage interest payments on real/personal property
• Interest payments on debt obligations incurred before Feb. 15, 2020
• Refinancing an SBA EIDL loan made between Jan. 31, 2020, and April 3, 2020

Note that the individual must have claimed or be entitled to claim a deduction for the included expenses on 2019 Form 1040 Schedule C.

Businesses other than self-employed individuals can cover payroll costs, health care benefits, mortgage interest payments, rent, utility, interest payments on debt incurred before Feb. 15, 2020, and/or refinancing an SBA EIDL loan made between Jan. 31, 2020, and April 3, 2020. Check out these FAQs on payroll costs and other PPP topics.

5. The eight-week period that determines the amount of forgiveness for the PPP loan begins on the loan approval date.

MYTH — The lender must make the first disbursement of the loan no later than 10 days from the loan approval date, but those eight weeks begin on the day the lender makes the first disbursement.

The amount of loan forgiveness depends on the amount spent during those eight weeks on:

• Payroll costs as defined by the interim rule (does not include benefits for owners)
• Owner compensation replacement (limited to 8/52 of 2019 net profit and excluding any qualified sick or family leave equivalent amount for which an FFCRA credit was claimed)
• Interest payments on mortgage obligations for real/personal property incurred before Feb. 15, 2020
• Rent payments on lease agreements in force before Feb. 15, 2020
• Utility payments under service agreements dated before Feb. 15, 2020

*Note that for interest, rent and utility payments, the amounts must be deductible on Form 1040 Schedule C for those applying as a self-employed individual.

There you have it. Remember that facts around PPP and other programs springing from COVID-19 are always developing, so it’s important to be alert to news and changes. Being informed is one of the best ways to serve your clients. Another? Sharing information and resources. For more information about the PPP and other COVID-19 resources for small businesses and individuals, check out CPApowered.org.

Association Staff

     

Related Stories

• Clients and CPAs can benefit from a 100% forgivable loan
• The tax season in the Upside Down
• Zoom virtual backgrounds for CPAs