Brought to you by the Maryland Association of CPAs Leading off As companies embrace A.I., the FTC issues a warning Between the emergence of ChatGPT and the ongoing quest for automation in a tight labor market, artificial intelligence is taking a big turn in the spotlight, but that buzz is being accompanied by a warning from the Federal Trade Commission. (From the Baltimore Business Journal) FASB studies A.I. use in financial data analysis The Financial Accounting Standards Board is studying the use of artificial intelligence in capital allocation decisions as part of a broad effort to understand how investors process data, FASB Chair Richard Jones told trustees of the Financial Accounting Foundation. (From CFO Dive) Are your biggest cyber risks internal? In a world where everyone is a target, companies also need to understand their exposure to risks that come from inside their organizations. (From Harvard Business Review) Maryland General Assembly Maryland lawmaker withdraws four-day workweek bill Don’t make regular Friday plans yet. The four-day workweek dream is no longer on the (legislative) table for 2023. (From The Baltimore Banner) 3 bills meant to boost small-business economy After eight years with a Republican governor who frequently vetoed Democratic majority-led legislation in the Maryland General Assembly, some lawmakers are bullish that legislation to increase participation among minority and women-owned businesses with state contracts may become law. (From The Baltimore Banner) Maryland lawmakers could take a key cannabis vote this week The Cannabis Reform Act of 2023 is expected to hit the floor of the Maryland House of Delegates on Tuesday accompanied by amendments, as the bill to prop up an adult-use recreational marijuana market progresses through the General Assembly. (From The Baltimore Banner) Economy Fed chair warns inflation fight will be long, bumpy Federal Reserve chairman Jerome Powell warned on Tuesday the central bank may have to push interest rates higher than previously expected in order to curb stubborn inflation. (From National Public Radio) Why global debt and supply chain risks are likely to linger Many companies rely on financial leverage to meet operational needs in an inflationary and inconstant era. This demand and dependence on debt will continue, a new report says. Capital pressures from supply chain risks also continue to burden organizations, and many businesses will need to invest in technology to stay efficient, the report says. (From Financial Management) Tax season Tax season so far: ERC abuses and new frauds The filing season is continuing its successful start, with just a small amount of carryover from last year. Third-party marketing of the Employee Retention Credit is causing concern, with the IRS reaching out to employers to be cautious in claiming a credit that they may not be eligible for, and to practitioners, reminding them of their Circular 230 due diligence responsibilities. (From Accounting Today) Pros handle 45% of income tax returns Tax season 2023 has been consistent. Refunds are down, and so are self-prepared filings and IRS.gov visits. By every other marker, though, business is as usual or better. (From CPA Trendlines) Who gets the biggest refunds? Despite what you may think, the size of the average individual income tax refund in any particular state does not depend on the state’s economic weight, or the size of its population — and that was all the more true in 2021, thanks to the impact of pandemic relief payments. (From Accounting Today) More in tax Senate committee approves Werfel as IRS commissioner The Senate Finance Committee approved Thursday the nomination of Daniel Werfel as the next Internal Revenue Service commissioner by a 17-9 vote. (From Accounting Today) ChatGPT's tax advice was wrong 100% of the time ChatGPT can write essays, poetry, letters, and more, so we posed the question; Can it do our taxes? TaxBuzz, decided to take the technology for a test drive. (From TaxProf Blog) IRS warns of new tax season scam involving bogus W-2 claims The Internal Revenue Service is cautioning taxpayers to beware of a new scam involving the Form W-2, in which fraudsters are urging people to use wage information on a tax return to claim false credits so they can score a big tax refund. (From Accounting Today) IRS issues another warning about the popular ERC The IRS is once again warning small-business owners to steer clear of Employee Retention Credit scams, and it’s signaling plans to actively audit and pursue criminal investigations for those falsely claiming the tax credit. (From the Baltimore Business Journal) Republicans denounce study on IRS setting up its own free e-filing system A pair of Republican leaders of Congress’ main tax-writing committee are criticizing the fairness of an upcoming Internal Revenue Service study on the possibility of setting up its own free tax-filing system that would compete with the commercial tax software industry. (From Accounting Today) Business and industry Companies prepare for SEC climate-related disclosures Organizations are getting ready for the Securities and Exchange Commission to finalize the climate-related disclosure rule it proposed last year, or at least a scaled back version of it. (From Accounting Today) ESG reporting muddled by jumble of standards: IFAC Ninety-five percent of large companies worldwide release sustainability reports, an increase of four percentage points since 2019, but they use a jumble of inconsistent performance standards that cloud assessments by investors and lenders, two global accounting organizations said. (From CFO Dive) Cybersecurity: How to protect against the rising storm With cyberattacks becoming more frequent, now is the time for CFOs to shore up their cybersecurity programs and strategies. (From CFO.com) New standard provides risk-based approach to group audits The AICPA Auditing Standards Board on Tuesday issued Statement on Auditing Standards No. 149, a standard that introduces a risk-based approach to planning and performing a group audit. (From the Journal of Accountancy) Are finance leaders being held back from innovating? With the pandemic-induced economies putting many financial executives in a position of doing whatever is necessary to allow their company to survive, many have begun to expand outside of their traditional financial-related tasks and towards more leadership-centric tasks. Through this transition, many CFOs feel they’re being undervalued from a leadership perspective. (From CFO.com) UPCOMING EVENTS Forensic Valuation Conference Insights into Business Valuation, Forensic Accounting, and Litigation Support. MACPA has designed the Forensic Valuation Conference specifically to serve the critical niche of CPAs involved or interested in these sectors. This year’s topics include: Reasonable Compensation Using IRS Job Aid Data Analytics Market Approach Jim Hitchner will be our keynote speaker! This will be a great event! 2023 Government and Not for Profit Conference – In Person and Virtual Event We are so excited to offer our Government Not for Profit Conference with both an in person and virtual component for 2023! This year will be 3 days of CPE – that is 14 hours of CPE in one event! We are offering our first day, Friday, April 28th IN PERSON ONLY at the Maritime Conference Center. Day 2, Thursday, May 4th and Day 3, Friday, May 5th will be our two VIRTUAL ONLY four hour days (a.m. only). We are excited to offer this conference to you in a reimagined way! You will pay one price, and be able to attend all three days! Employee Benefit Plan Audit Conference Employee Benefit Plans are important to the hiring and retention of employees for any business. However, there are many aspects of plan operations that if not properly administered by plan sponsors can lead to errors and possible loss of exempt status. The Employee Benefit Plan Audit Conference equips CPAs who audit these Employee Benefit Plans with guidance on planning and performing more efficient and effective audits in accordance with the AICPA Audit and Accounting Guide and Department of Labor audit requirements. Public practice The search for talent in firms Nine out of 10 accountants in the United States report that they have struggled to hire good, quality job candidates in the past year, according to a new survey. (From CPA Practice Advisor) 3 keys to building a firm that's attractive to talent Attracting and retaining #talent is a common dilemma for firms of all sizes. While it can be frustrating to fix the problem, the three pieces discussed here can serve as a starting point. (From Accounting Today) 3 challenges tech will solve for your firm in 2023 While e-commerce enablers are a godsend for small businesses still struggling to survive in locations where foot traffic is scarce, they’re making life miserable for the accountants and bookkeepers who are responsible for reconciling sales and deposits, analyzing P&L and maintaining general ledgers for retail clients. (From Accounting Today) 5 tips for achieving work-life harmony during busy seasons From tight deadlines to too much work, achieving work-life harmony during the busy season can be challenging. While it may be impossible to eliminate stress, there are strategies you can use to help reduce the negative impact of stress and increase productivity. (From CPA Practice Advisor) Diversity / equity / inclusion Many companies are losing momentum on DEI Nearly three years after companies across the nation pledged to make strides on diversity, equity and inclusion, many are dropping the ball on key strategic elements of the effort. (From the Baltimore Business Journal) How to spark a revolution in company culture One in five employees have left a job because of poor company #culture. Here are the key actions leaders can take to lay the ground for inclusive change. (From Fast Company) Talent Prioritizing soft skills in hiring is crucial An organization of soft-skilled employees will run and communicate like a well-oiled machine. Managers can save themselves many future heartaches if they prioritize soft skills during the hiring process. (From Entrepreneur) The full-time return to the office isn't quite what it seems Nearly three years after the pandemic left millions of employees working remotely, many companies are clamping down on work-from-home arrangements. (From the Baltimore Business Journal) From our partners March 17 webinar: 'What To Do When Your Clients Ask For More' Join accounting expert Jennie Moore for this informative webinar as she shares her proven strategies for handling out-of-scope work requests from clients. Discover how to confidently communicate your value and avoid professional liability. Learn how to turn awkward conversations into productive ones and protect your profit margin while keeping your team and your clients happy. (From Ignition) March 21 webinar: Your CAS journey starts here Client Advisory Services is the fastest-growing firm segment in the profession. In this half-day “Introduction to CAS” workshop, you’ll learn what it takes to build a top-performing CAS practice. (From CPA.com) March 22 webinar: Gain insights, efficiency with Divvy Join this free webinar to learn how spend management technology can save your firm time and help you deliver higher-value advisory services to your clients. (From CPA.com) A proactive approach to expense management Spend management is a modern approach to expense management that provides real-time visibility into your clients’ spending, allowing you to take a more strategic role to help your clients meet budgeting goals. Read this blog from CPA.com to learn more about what spend management is and why it’s a win-win for you and your clients. (From CPA.com) 2023 Startup Accelerator Cohort announced The AICPA and CPA.com have announced its 2023 Startup Accelerator Cohort, which include five early stage companies pursuing solutions in audit, accounting, tax and e-commerce. The Startup Accelerator supports the growth of early-stage technology companies benefiting the accounting and finance ecosystem. Find out more about the program and participating companies here. (From CPA.com) 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) Save time with AuditMiner's SOC 1 Toolkits We know it is a busy time of year, and AuditMiner’s SOC 1 toolkits are designed to save you and your team a lot of time! The SOC 1 Review Toolkit provides information identified in a service organization’s Type 2, System and Organization Controls Report. It’s an Excel workbook that comes pre-loaded with information identified by the service auditor and is designed to meet audit standards for review of the Type 2, SOC 1 report. The toolkits are $250 and can be purchased directly from our website. (From AuditMiner) The role of technology in new firm staffing models The accounting field is changing. Does your practice have the technology, strategy, and resiliency needed to thrive in today’s challenging and uncertain business environment? That is a question firms must consider as they navigate the shifts and complexities that are impacting the profession. This white paper from Avalara takes a closer look. (From Avalara) On-demand webinar: Predictions for the profession For many accounting practitioners, 2022 has been a year of continuing challenges, with extended filing deadlines, growing client expectations, staffing upheaval and pressure to grow through enhanced advisory work and smart use of technology. We don’t expect the pace for change to slow down in 2023. In this forward-looking session, we dig into big trends like new business models and the arrival of private equity in Top 100 firms that foreshadow historic growth. Don’t miss this panel featuring three of the most influential thought leaders in accounting as we explore what’s ahead in 2023! (From Avalara) MARYLAND ASSOCIATION OF CPAs 901 Dulaney Valley Rd, Ste 800, Towson, MD, 21204­-2683 800­-782­-2036 | MACPA.ORG Update your email preferences here