Brought to you by the Maryland Association of CPAs Leading off Podcast: Inspiring next-gen CPAs New MACPA Chair Christine Aspell says changing the CPA narrative “from the ever-adapting day-to-day work to the purpose behind that work” is an opportunity we can’t afford to miss. She explains why in this week’s episode of “Future-Proof.” (From the MACPA) • Subscribe: iTunes | Spotify | Google Play | Stitcher PCAOB report: Audit deficiencies rise again in 2022 The number of audits found to have deficiencies during PCAOB inspections showed another year-over-year increase in 2022, according to a board staff report. The report said the PCAOB expects about 61% of the 710 audits the PCAOB reviewed in 2022 to have one or more Part I.A or Part I.B deficiencies — up from 55% in 2021 and 44% percent in 2020. (From the Journal of Accountancy) Barriers to entry: Why they're not becoming accountants It’s not that students don’t see value in the CPA license — it’s that it’s expensive and difficult to achieve, and frankly, not that exciting to a lot of them. (From Accounting Today) A.I. not an enemy, but an enabler of progress While A.I. does have the ability to take on some aspects of an accounting professional’s role, there’s no reason to fear the worst just yet. A.I. and technology in general are not going to take over the work of professional accountants in a hurry. It’s important that we see them as enablers in providing clients and the industry at large with more value-added services. (From Accounting Today) Maryland Maryland court delays inevitable fate of digital ad tax A recent ruling involving digital taxes in Maryland does little except to create uncertainty and costs for both taxpayers and the state without protecting any other interests, says Mike Semes of BakerHostetler. (From Bloomberg Tax) Maryland AG vows to fight for corporate diversity policies Maryland Attorney General Anthony Brown has vowed to fight attempts to end the racial equity and inclusion policies used by private corporations. (From Maryland Matters) Strengthen the profession: Support our PAC Through contributions from members like you, the MACPA’s political action committee is able to work toward favorable outcomes on legislative issues that affect CPAs, educate legislators about matters that are important to the profession, and keep MACPA members informed. Your generous contribution will help ensure Maryland CPAs have a voice in Annapolis and a vibrant CPA profession in the future. Donate today! Economy Fed hikes interest rates to highest point in 22 years The Federal Reserve raised its benchmark lending rate by a quarter point Wednesday, lifting interest rates to their highest level in 22 years. It’s the 11th rate increase since the Fed began its inflation fight in March 2022, and comes just one month after the central bank hit pause in order to assess the state of the economy. (From CNN) Economists see U.S. recession odds at 50% or less A strong majority of business economists now say the odds of the U.S. entering a recession in the next 12 months are 50% or less, according to a National Association for Business Economics survey. (From BNN Bloomberg) Half of U.S. states near record low unemployment rates Half of U.S. states were experiencing record-low unemployment — or very close to it — in June, underscoring the strength of the nation’s labor market. The unemployment rates in 25 states are currently at or within 0.1 percentage point of a record low, Bureau of Labor Statistics data showed Friday. (From CPA Practice Advisor) Consumer confidence climbs to 2-year high as worry over inflation and recession ease A survey of U.S. consumer confidence climbed to a two-year high of 117.0 in July, a sign that Americans are growing more optimistic about the economy. (From MarketWatch) Tax IRS signals new phase of ERC work With the IRS making substantial progress in the ongoing effort related to the Employee Retention Credit claims, Commissioner Danny Werfel said the agency has entered a new phase of increasing scrutiny on dubious submissions while renewing consumer warnings against aggressive marketing. (From the IRS) IRS warns of summertime tax scams The Internal Revenue Service is seeing a surge of tax scams this summer hitting taxpayers via email and text messages touting tax refunds and quick fixes to their tax problems. (From Accounting Today) IRS ends most unannounced revenue officer visits The IRS is drastically cutting back on its decades-long practice of surprising taxpayers at their homes or businesses because of concerns about the safety of employees and confusion caused by scam artists who also knock on doors, IRS Commissioner Danny Werfel said Monday. (From the Journal of Accountancy) IRS good at addressing cyberthreats, but not documenting them While the IRS has done a good job of addressing cyberthreats, the Treasury Inspector General for Tax Administration said it needs to do better at documenting the incidents afterward. (From Accounting Today) Tax deadline approaching for storm victims in four states The IRS extended the tax deadline to July 31 for storm victims in several states. Here are the counties in Arkansas, Indiana, Mississippi, and Tennessee that need to file — and pay — federal taxes soon. (From Kiplinger) UPCOMING EVENTS Chesapeake Tax Conference 2023 Every year, the Chesapeake Tax Conference offers tax CPAs a robust look at the new changes and issues affecting tax accounting. The event features topics related to federal and state taxation, as well as specialty topics. 38th Annual Personal Financial Planning Your clients trust you with their financial security – make sure you’re advising them with the best information available. The Personal Financial Planning Conference is designed to give you up-to-date insights into the issues and trends that impact local, regional, and global markets. All of our speakers will be VIRTUAL – but we are hosting a “WATCH PARTY” at our offices in Towson. If you would like to attend IN PERSON and network with colleagues please sign up for IN PERSON. We have LIMITED seats for our watch party! Group discounts are available! 2023 Women to Watch Awards Breakfast We are excited to again host the MACPA’s Women to Watch awards, highlighting the accomplishments of women in the profession and demonstrating to emerging female leaders that success is not out of reach. The awards are given in two categories: Emerging Leaders and Experienced Leaders. Emerging Leaders are those women who are up-and-coming stars in their organizations, while Experienced Leaders are those who have established their roles as leaders in their organizations by advancing to the highest levels of management or ownership, and by mentoring those following in their footsteps. Winners will be selected by a special MACPA task force of past winners and MACPA’s volunteer leaders. All nominees will be recognized and winners announced at the 2023 Women to Watch Awards Ceremony on September 22, 2023. All nominations are due by July 31, 2023. All nominees must be a Certified Public Accountant and a member of MACPA. Public practice AICPA introduces strategy planning toolkit for accounting firms The American Institute of CPAs and CIMA have released the PCPS Strategy Planning Toolkit, a resource designed to assist accounting firms in business model transformation. The toolkit empowers firms of all sizes to create a shared vision for the future of their organizations. The PCPS Strategy Planning Toolkit is free for a limited time. (From CPA Practice Advisor) ESG risks and opportunities for CPA firms As CPAs, our professional integrity, skepticism, and responsibility for quality, as well as our understanding of the companies we serve, positions us as the ideal provider of ESG and sustainability services. (From Accounting Today) Three fundamental questions to ask in audit We’ve evolved from paper and pencil to technology, but we’re not teaching the staff what audit is about. Their focus is on the forms and not on what matters most to the client – the bottom line. (From CPA Trendlines) How tax practitioners became cybersecurity risks In 2015 the IRS held its first Security Summit. By creating a public-private partnership via the summit, the IRS is seeking to protect more taxpayers and more tax dollars from tax-related identity theft. (From CPA Trendlines) Your firm and your A.I. tools Each person’s A.I. journey will be different. There is no right and wrong way to use the tools, but there may be better ways that we learn over time. (From CPA Practice Advisor) Business and industry Global watchdog backs new company climate disclosures A global securities watchdog on Tuesday formally backed new international company climate disclosures to help speed up international adoption and crack down on greenwashing. (From Reuters) AICPA launches new climate resilience accounting resource The AICPA has launched “Accounting for Climate Resilience,” a new online educational brief designed to help finance professionals build their sustainability literacy so they can lead and support the journeys of their organizations, firms, and clients as they adapt business models and operations in response to increasing climate-related risks. (From the AICPA) SEC adopts rules on cybersecurity risk, disclosures The Securities and Exchange Commission has adopted rules requiring registrants to disclose material cybersecurity incidents they experience and to disclose on an annual basis material information regarding their cybersecurity risk management, strategy, and governance. The SEC also adopted rules requiring foreign private issuers to make comparable disclosures. (From the SEC) Operational efficiency: CFOs face a dilemma and an opportunity Ensuring operational efficiency and effectiveness are top agenda items for C-suites but the macroeconomic landscape is riddled with obstacles that must be carefully balanced, particularly by CFOs spearheading their company’s cost excellence strategy. (From CFO.com) Some companies are mandating office etiquette training as workers return to office As more companies call employees back to the office or step up enforcement of hybrid policies, some are worried their workers will leave their office manners at home. (From the Baltimore Business Journal) Technology WormGPT, FraudGPT emerge to help scammers steal your data The arrival of WormGPT and now FraudGPT signals that hackers are seizing the opportunity to create AI-powered chatbots to facilitate cybercrime and scams. (From PC Magazine) How to steer ChatGPT toward giving you better results To understand how to shape a productive session with ChatGPT, think of it as a glider that takes you on journeys through knowledge and possibilities. (From Fast Company) GAO calls for federal blockchain legislation The Government Accountability Office, in a recent report, called on Congress to pass federal blockchain regulation in order to account for gaps in the current regulatory system. (From Accounting Today) Professional development 3 skills accountants need in a ‘post-truth’ era In the “post-truth” era, objective facts can be overshadowed by misinformation, manipulation and personal beliefs. Learn why it’s vital for accountants to develop skills in ethics, critical thinking and trust. (From CPA Australia) Leaders: Ignore Employee wellbeing at your own risk Only about one in four U.S. employees feel strongly that their organization cares about their wellbeing. This percentage has been trending down since it peaked at the start of the pandemic. (From Gallup) Is your employee recognition really authentic? Employees want — and need — to be recognized at work for what they do and who they are. Gallup and Workhuman have uncovered many ways in which recognition boosts employees’ engagement, wellbeing, inclusion and belonging at work — all of which may help to explain why organizations that make recognition a part of their culture also see cost-savings in retention. (From Gallup) From our partners Try CPACharge and pay no monthly fee for 3 months Don’t let time-consuming tasks take up your day. Streamline your processes with CPACharge, the only payment solution made with accounting professionals in mind. Easily and securely accept credit, debit, and eCheck payments anytime, anywhere. MACPA members who sign up by July 31 will pay no monthly fee for 3 months! (From CPACharge) Reaching your CAS practice goals starts here CPA.com CAS workshops are designed to guide firms at all phases of their journey to grow and scale their practices. So whether your firm is just getting started in building a CAS strategy, or has an established practice looking to boost revenue, learn more about our workshop offerings and reserve your seat. Learn more here. (From CPA.com) Aug. 9 demo: Growing your advisory practice According to CPA.com’s recent survey, 40% of accounting firms that offer spend management advisory bill $1K-$3K per client in monthly fees. That’s because business clients understand the value of this service and want more control over their spending. Join this Aug. 9 demo at 3 p.m. ET to learn how your firm can leverage spend management technology to gain efficiencies and grow revenues. (From CPA.com) Aug. 22 webinar: CAS practice transformation strategy Join this free Aug. 22 webinar at 2 p.m. ET to learn the opportunities of building a successful client advisory services practice. This session will explore the first pillar of the CAS 2.0 framework, strategy and governance, focusing on internal firm structure, leadership alignment and change management planning. Learn more here. (From CPA.com) Read: 'Add value, efficiency with these 5 tools and services' Over the past few years, small and midsized accounting firms have helped Main Street businesses survive and thrive. These firms have held a front-row seat to myriad financial services, from tax compliance to cash flow management, serving as operational partners and trusted advisors along the way. But it’s your accounting firm’s ability to modernize that can give you that critical edge. By embracing new technology or offerings, you can boost client value and efficiency in your accounting firm. (From ADP) Read: 'There's no substitute for quality' Quality is something that can only be embedded through a CPA firm’s people and culture. It is not something on a checklist or completed prior to the issuance of a CPA firm report. It is a fundamental value and way of life for a true professional. (From Aon) AccounTrends: A podcast from Intuit Accountants Tune in to AccounTrends, Intuit Accountants’ dynamic podcast for tax and accounting professionals hosted by Intuit’s Jasen Stine. Updated every two weeks, we will bring you insights and advice from the accounting industry’s top experts and thought leaders. AccounTrends is available on Apple Podcasts, Spotify​, and Google Podcasts​. Subscribe today! (From Intuit) MARYLAND ASSOCIATION OF CPAs 901 Dulaney Valley Rd, Ste 800, Towson, MD, 21204­-2683 800­-782­-2036 | MACPA.ORG Update your email preferences here