Want to write an accounting blog, but don’t know how to get started?

March 19, 2013

Writing a blog is quite a bit different than some of the reports and other papers you may write – if you do much professional writing at all. Doing work

People read blogs to learn new information from the writer’s distinct point of view. They want easy reading, and they want interesting information.

Here’s how you can give them what they want.

What should I write my blog about?

As a CPA, you have an abundance of information at your fingertips that people are really interested in hearing about.

Think about the questions you get asked most on a daily basis by your clients or by your friends at a cocktail party or backyard barbeque.

Those conversations will give you the best ideas because you’re writing a blog for the public – and those people are the public. You don’t want to write about the latest FASB update or the new IRS Revenue Ruling, which may be water cooler conversation at the office, but is in the stratosphere for your intended reader.

Your readers want information that will help make their lives better – that will earn them more money, cost them fewer taxes, protect their businesses from fraud or cut their office expenses.

It’s essential to remember who your audience is. So, unless you are writing for a professional site directed toward other CPAs, your audience is either the general public or a particular business or industry group – none of whom are CPAs.

If you work in the tax area, there are dozens of topics people would like to learn more about, especially at this time of year.  You can write about their individual taxes or tax issues that affect their businesses. If your website is divided into different niche areas, you can customize your blog to builders, manufacturers, nonprofit organizations, professional service businesses or other industry groups.

Here are just a handful of possibilities that might spark an idea:

  • How businesses can take advantage of the reinstated R&D credit
  • Gifting opportunities and other planning measures to avert higher estate taxes
  • How Obamacare will affect businesses
  • Making the most of the home office deduction
  • How enhanced Section 179 elections can help small businesses
  • Planning to reduce capital gains taxes
  • Minimizing taxes on IRAs, 401(k)s and other retirement plans

If fraud is your area, there are endless possibilities for blogs on how to prevent and detect fraud. Consider topics related to workers’ comp, tax evasion, identity theft, collusion, employee pilfering, embezzlement – the list goes on and on.

Case studies and recent court cases can serve as colorful examples to illustrate broader issues.

A&A also has areas of interest to business people. Some possible topics are:

  • How to prepare for your annual audit
  • What your auditor does – and doesn’t do
  • Understanding your financial statements
  • How to develop adequate internal controls

Regardless of your area of expertise, when you’re looking for a topic, think of the questions most often asked by your clients, as well as important information that could be beneficial to them but that they might not know to ask about.

How do I write the blog?

Read the rest of this entry »

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Posted by cpamericaintl

What Would The U.S. Debt Be If An Accountant Was In Charge?

February 26, 2013
Art Winstead

Art Winstead

It’s always bothered me there has never been a T.V. series or a good movie using an accountant or an accounting firm as the star.

For that matter, I do not know of any athletes that majored in accounting while in college. Nor have I heard of an accountant that became a famous rock star or rapper. Those thoughts have clouded my mind for a number of years.

Okay, so the world may not welcome us to the stage, the screen or athletic fields, but consider this:

What if there was an accountant in charge of the U.S. budget? That’s right; one of us bean-counting nerds in charge of the U.S. budget.

Maybe we could even be granted the title of an appointed Presidential Czar. Now, that would be pretty cool, interesting and no doubt challenging. Think about it, a “CPA Czar,”or the “Czar CPA,” the opportunities are endless.

I just “Binged” US National Debt Clocks (Yep, I am “Binging” now. I got tired of “Google-ling”).

The clock that I selected from the search documented an astounding $16,595,134,780,792 as the amount of the U.S. national debt. That’s real money. It’s more money than I have been associated with as a reporting accountant or auditor. To put it in perspective, it would take 256,964,529 dollars going around the world 64,581 times to amount to the size of the U.S. debt.

So, let’s put the accountant in charge. Think about it:

  • The U.S. books would balance. Have you ever thought about where are all of those debits for the other side of all the U.S. debt credits?
  • The accountant would have all the variable interest entities properly accounted for.
  • The accountant would have the fair value of the U.S. debt fairly stated. Think about that – what is the value of the U.S. debt? Is the value of the almost $17 trillion the U.S. owes? Would the U.S. Government Accountability Office still issue a disclaimer of opinion on the U.S. consolidated financial statements. I am sure the consolidated financial statements recognize all the U.S. government variable interest entities or certainly all component units.
  • If an accountant were in charge, what would the communication letter to those charged with governance read like as to significant deficiencies and material weaknesses? That begs the question; perhaps all deficiencies in internal control for the U.S. are indeed material weaknesses.

I see no reason not to put an accountant in charge of the U.S. debt, could it be any worse?

 

Art Winstead is the Director of Accounting and Auditing Services for CPAmerica International. He has over 30 years of experience with Davenport, Marvin, Joyce & Co., LLP. He manages technical resources, engagement support, audit practice matters, reviews A&A publications for CPAmerica and is a part of the Expert Services team.

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Auditing Standards – Clarified and Converged

November 28, 2012

Art Winstead

Over the years I’ve had the good fortune to practice in this profession, there have been periods when auditors have experienced changes to the professional standards and guidance we are required to apply.

This year will not be different for those of us practicing as auditors of financial statements prepared by non-issuer entities here in the United States.

In mid-December the “clarified and converged” auditing standards (C&C Standards) will be effective for audits of financial statements with reporting periods ending on or after that date.

The AICPA Auditing Standards Board issued the C&C Standards In 2011. This issuance was the result of the C&C Project initiated in 2004.

Auditors will now be using terms such as “overall objectives,” “the applicable financial reporting framework,” “special purpose frameworks,” and “terms of engagement.”

In my opinion, the biggest change will be in the format and the wording of the “auditor’s report.” Although the wording is not dramatically different, it has changed. The responsibilities of the auditor and management, and the requirements for the procedures, are still substantially the same.

So what changed? In my opinion, from the perspective of an auditor who applies required procedures, not a lot.

The organization, codification, and format of the standards did change significantly. The codification organization – the numbers applicable to a standard – is indeed different, but there is nothing tough to overcome for users of the standards. The numbers we have used for decades for the general, fieldwork, and reporting standards are different, but that should not present barriers or challenges for their proper application.

The format of the standards is much more user-friendly. The statement format begins with a clarified statement of objective, followed by definitions where needed, the requirements for the procedures to be applied, and concludes with application and explanatory material that cannot be ignored by the auditor. Read the rest of this entry »

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What Happened to all of Those Variable Interest Entities?

September 26, 2012

 

It has been approximately 10 years since preparers of financial statements have been required to consolidate entities that may not have common ownership in excess of 50% (first required with the issuance of FIN 46-R).

This 50% rule was more formally recognized in regard to control through a quantitative measure of voting interest greater than 50%. The reasons for the additional requirement in 2003 had as much to do with entities that were accounted for “off balance sheet” in comparison to those entities in which the more-than-50% threshold existed between common ownership entities.

Keep in mind that FIN 46-R was an interpretation of ARB 51 which replaced FIN 46.

And yes, what we commonly refer to as “FIN 46” is all incorporated in the guidance within FASB Codification Topics 810, 805.

Some of the more discussed reasons for expanding the requirements included:

  • Loans and/or notes receivable
  • Guarantees
  • Certain insurance contracts
  • Derivative contracts
  • Leases
  • Service or management agreements

The requirements became more qualitative as compared to the previous guidance which was based on a quantitative measurement requirement, i.e., the 50% rule.

The new requirements in 2003 were met with much disagreement and confusion as to why – and how – these new requirements should be applied. Read the rest of this entry »

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What are you getting out of your CPE training?

August 29, 2012

National Registry of CPE SponsorsDespite generous expenditures, most CPE training dollars filter into a black hole from the standpoint of benefit to the sponsoring CPA firm.

Beyond licensure CPE requirements and individual career development, the sponsoring firm should pay attention to ways it can further maximize those training dollars.

The biggest shortcoming I see among CPA firms is to arrange, schedule and pay for a CPE experience and then not expect the trainee(s) to be debriefed following the training and – further – to not challenge the trainee to “apply” the training in some practical way to contribute to the betterment of the firm.

Firms should consider a recommended process for training, such as:

  1. Match both hard and soft skills training to the career path of the individual.
  2. Hold a pre-training meeting with the trainee before each training event to discuss his or her expectations and the firm’s expectations, to encourage note-taking during the training and to plan to debrief others after the training.
  3. Hold a post-training meeting with the trainee immediately following each event to discuss how the training applies to personal career development, as well as to identify any aspects of the training that can be leveraged throughout the firm.  Specifically, discuss with the trainee the three ideas they want to remember, put into action or change, both on a personal and on a firm level.
  4. Consider placing the trainee in a “training” role so they can re-teach what was learned to others in the firm.  This approach may also qualify for in-house CPE credit for participants.
  5. Set measureable goals to be accomplished as a result of the training.  Revisit progress quarterly.

I’m excited by the requests I receive for guidance on training from learning directors at CPAmerica member firms.

Good tax and audit training is available in many shapes and sizes from a variety of professional vendors and state societies dedicated to quality.  But meaningful soft skills training can be much more difficult to find and is a frequently lost benefit to the firm if a follow up process is not implemented. Read the rest of this entry »

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How to Build a Firmwide Pipeline Meeting

August 23, 2012

At all levels, people will do as they are measured.

This principle underlies the purpose of a pipeline meeting.

A group under the pressure of identifying and presenting changes in the status of prospective clients will likely increase sales activity.

What is a sales pipeline?

A sales pipeline is a report that is recorded and published by the participant for review among colleagues and superiors.  The real concept is that, if sales progression is written or saved for examination, there will be more sales and business development activity.

What do we measure?

Many firms struggle with determining what, exactly, they will measure with the pipeline. The pipeline report can be based on an accepted, formal business development process.  Or it can be a self-designed process based on the firm’s own recognized categories for development of a prospect through the sales process.

The important factor is consistency and regularity of reporting from meeting to meeting.  As the individual prospect is compared to other prospects and moves through the development process, the expectation is that the firm’s responsible individual will do what is required to make the sale.

The process starts by tracking basic information on the targeted prospect, including:

  • Prospect name
  • Decision maker(s)
  • Contact numbers

Also recorded and presented should be a definition of the status of the effort.  It may include selling stages such as: Read the rest of this entry »

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Webinars Sizzle at CPAmerica

July 16, 2012

This summer, many of you will be searching for CPE opportunities.

Luckily, most firms have embraced the online method of receiving these valued CPE credits.

CPAmerica International members have taken advantage of the summer S Corporations Series – a soup-to-nuts approach on S corporation taxation that provides education for staff from basic to intermediate- level webinars.

Averaging more than 350 participants per webinar, programs held in June show the value of providing online CPE at a good price.  Starting in July, the S corporation series will continue with more advanced topics.

CPAmerica members receive not only CPE credits, they actually learn S Corporation taxation, starting with the very basic through the more advanced issues.

You’ve heard the advantages of online CPE vs. live programs.  In addition to less time out of the office and better pricing than live courses, many firms are taking advantage of the group participation option.  From new staff to partners, our members’ tax personnel gather in conference rooms to participate in the webinar together.  After the webinar, they take time to discuss specific client situations or revenue opportunities.

A great instructor doesn’t hurt either.  Many recognize Jim Hamill as one of the best tax instructors in the nation, and members participating in this series certainly agree:

“Jim Hamill is one of the best instructors I have had: concise, clear, does not patronize – effectively presents the material in a way that can be understood without boring you to death even though it is dry material.  Retention of information provided is guaranteed.  Great choice of presenter.”

“Jim always does a nice job.  This elementary class in S-corps was very helpful for our newest accountants and a good review for those who have been in the business for a while.”

 “Great topics for some new practitioners and seasoned veterans to refresh on.”

 “This series is awesome; James also does an incredible job at presenting material.  So much to learn from him!”

In addition to the S corporation series, CPAmerica is also offering an A&A series beginning this month, presented by national expert, Dr. Tom Ratcliffe.  These programs will differ from the content presented in Ratcliffe’s Plain English programs, to which many members subscribe. Read the rest of this entry »

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Financial Reporting Standards Take an Interesting Turn

July 9, 2012

Art Winstead

Art Winstead, Director of A&A at CPAmerica International and recently wrote this article for his Davenport, Marvin, Joyce & Co.’s blog.

Yes, it is a great time to be a CPA. The conversation regarding financial reporting standards in the US for private companies has taken a very interesting turn.

In my opinion, the AICPA has taken an interesting path. They are endorsing the FAF decision for introducing the Private Company Council, but at the same time announcing that they are establishing an OCBOA group to set OCBOA standards for SMEs. The assumption may be SMEs with all private companies. I personally am not satisfied with how SMEs are determined in the IFRS framework for SMEs. But, that’s just me.

So where will we be when, and assuming this OCBOA for SMEs framework, is indeed developed by the AICPA?

As you may recall, the AICPA made a hard decision in the 1970′s to get out of the accounting standard setting business and develop standards for reporting on financial statements using a specific framework of accounting standards, i.e., FASB, GASB, FASAB, IFRS etc. Those same reporting standards provide guidance for accountants and auditors to use if an entity is using an OCBOA framework. Without question, that is summarizing the 1970s process  in very brief terms.

I believe most members of the AICPA will endorse this role. It will make financial reporting “easier,” seemingly less complicated, and perhaps cost efficient for entities using the AICPA OBOA framework. Morevoer, it will also be interesting to see if the AICPA amends the Code to add the AICPA SME framework as a “permitted” financial reporting framework and the OCBOA “tag” gets lost?

The users of financial statements, primarily creditors and owners in our member firm client base, will have to make a decision; OCBOA statements using standards established by the AICPA or “GAAP” statements using standards set by the FASB/FAF Private Company Council.

This indeed will be fascinating to watch.

Art Winstead is the Director of Accounting and Auditing Services for CPAmerica International. He has over 30 years of experience with Davenport, Marvin, Joyce & Co., LLP. He manages technical resources, engagement support, audit practice matters, reviews A&A publications for CPAmerica and is a part of the Expert Services team.

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FASB to Revisit “Going Concern” Question

May 17, 2012

I have personally found the deliberation by the FASB of the “going concern” question for entities somewhat fascinating and, at the same time, frustrating to follow.

On May 3, 2012, FASB announced its decision to revisit management’s requirement or no requirement to management if there is doubt about an entity’s ability to continue as a “going concern.”

In January 2012, FASB decided and announced it would not require management to assess whether there is substantial doubt about an entity’s ability to continue as a “going concern.” The FASB announced such a requirement would be difficult to apply and, in the same announcement, decided ongoing disclosures about risks and uncertainties would be more valuable to users of financial statements.

Certainly, these disclosures about risks and uncertainties are valuable information, but I believe that “going concern” is one the “broad” accounting principles that have come to include consistency, materiality, historical cost, matching, revenue recognition, conservatism, disclosure/prudence, time period, and the consistent or comparable application of the accounting principles applied by an entity.

We can debate which – if any – of these broad principles may be more significant than others. We can also debate if some are in fact principles or concepts. Regardless, however, Generally Accepted Accounting Principles (GAAP) as the issued guidance in the FASB Accounting Standards Codification (ASC) are substantial in detail of their accepted application. The relevant guidance for each of the broad principles exists with the exception of “going concern.”

ASC Topic 205, “Presentation of Financial Statements,” addresses “changes affecting comparability” of financial statements. This relates to the consistency of financial information. To me, consistency relates to the principle of a specific time period and there is no doubt as to the entity’s ability to continue for another comparable time period. Read the rest of this entry »

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Faster than a Speeding Bullet – US GAAP – IFRS Convergence

March 15, 2012

Art Winstead

Yes, it’s a cliché. And a pretty good one at that, if you like Superman and Seinfeld episodes.

But, is there ever a good time to adopt a pace slower than a speeding bullet? When it came to converging US GAAP with IFRS, I initially thought it could not move fast enough.

Today, however, converging US GAAP with IFRS strikes me as a path that should be taken at a slower pace. What I cannot see clearly now, is the path to convergence and the time it will take to come to the end of that path.

Periodically, we hear that progress is being made. But shortly thereafter, we hear reports contrary to convergence being achieved in a short period.

What exactly does convergence mean? Without question, convergence is the ultimate goal to establish globally-accepted, high-quality accounting standards.

Though we sometimes scoff at the differences, some of those differences could – and will – have significant economic consequences. Read the rest of this entry »

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