Brought to you by the Maryland Association of CPAs Leading off Podcast: U.S. joins global e-invoicing movement A 2022 pilot program has U.S. companies ready to join an operational B2B e-invoicing exchange framework this year. What comes next … and what do CPAs need to know? Avalara’s Alex Baulf takes a closer look in this week’s episode of “Future-Proof.” (From the MACPA) • Subscribe: iTunes | Spotify | Google Play | Stitcher Experiential learning: An evolution in CPA knowledge Debates continue on ways to address our depleted talent pipeline, and reasoned arguments and thoughtful ideas abound. With that in mind, the MACPA offers this opinion piece from Joseph Petito, who serves on Maryland’s Board of Accountancy. (From the MACPA) Tech experts call for halt of A.I. advances An open letter signed by hundreds of prominent artificial intelligence experts, tech entrepreneurs, and scientists calls for a pause on the development and testing of AI technologies more powerful than OpenAI’s language model GPT-4 so that the risks it may pose can be properly studied. (From Wired) Think customers trust you? Think again, says PwC Customers don’t trust businesses anywhere near as much as executives think, according to a new report from PwC. While 84% of business executives think consumers highly trust their companies, only 27% of consumers do, according to the Big Four firm’s “PwC 2023 Trust Survey.” (From Accounting Today) Economy World Bank warns of ‘lost decade’ for global economic potential The World Bank warned on Monday that the coronavirus pandemic and Russia’s war in Ukraine had contributed to a decline in the global economy’s long-term growth potential, leading to what could be a “lost decade” that would mean more poverty and fewer resources to combat the impact of climate change. (From The New York Times) Maryland Maryland fared better than most states in COVID mortality The United States has lost more than 1.1 million people to COVID-19, but Maryland’s health decisions during the pandemic helped keep deaths in the state at a national low. (From WYPR) Senate panel seeks independent state agency to oversee recreational cannabis After nearly three hours of review and debate, the Senate Finance Committee approved a heavily amended bill to regulate Maryland’s soon-to-be legalized cannabis industry Monday evening, setting up a showdown with the House of Delegates over some of the language. (From Maryland Matters) Recreational cannabis in Maryland: What can other states teach us? In November, Maryland became the 20th state to legalize adult-use recreational cannabis. Maryland follows states such as Colorado and Washington, which each legalized in 2012. Medical cannabis became available in Maryland in 2017. Here’s where Maryland is taking cues from other states, and where legislators hope to pave the way. (From The Baltimore Sun) Bill seeks to push cannabis businesses away from cash-only systems Maryland’s cash-only cannabis companies could be required to do business with traditional banks as legislators look to prevent fraud and reduce crime in the newly legalized recreational industry. (From the Baltimore Business Journal) Dirty Dozen tax scams IRS continues listing ‘Dirty Dozen’ scams for 2023 The Dirty Dozen is an annual IRS list of 12 scams and schemes that put taxpayers and the tax professional community at risk. Here are more of this year’s entries. (From the IRS) • No. 4: Too-good-to-be-true ERC claims • No. 5: Scammers using fake charities • No. 6: Shady tax preparers • No. 7: Tax advice on social media • No. 8: Warnings of ‘spearphishing’ More in tax Filing season: 'Business as usual' A unique feature of this year’s filing season thus far is the fact that there’s nothing unusual about it. The IRS is catching up on its backlog, there are fewer special credits and deductions to account for, and there hasn’t been any new tax law issued during tax season. (From Accounting Today) Mississippi storm victims qualify for tax relief Mississippi storm victims now have until July 31, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service has announced. (From the IRS) SCOTUS case pits privacy against IRS power to trace cash The U.S. Supreme Court is slated to hear a case that will test the reach of privacy protections against the IRS’s power to demand bank account records without ever notifying account holders. (From Bloomberg Tax) Survey: Maryland 7th among states with highest tax burden WalletHub compared the 50 states based on the three components of state tax burden — property taxes, individual income taxes, and sales and excise taxes — as a share of total personal income. Maryland placed seventh. (From Fox 45 Baltimore) Is IRS customer service improving? Janet Yellen says yes Treasury Secretary Janet Yellen told lawmakers the IRS is meeting its goal of answering 85% of taxpayer calls this tax season. (From CPA Practice Advisor) Business and industry Get ready for a major new business filing requirement A new law that’s taking effect next year is going to require millions of small businesses to begin filing disclosures about their true ownership with the Treasury Department or face stiff penalties, and most are unaware of it. (From Accounting Today) PCAOB proposes updated standards, faster audit filing The Public Company Accounting Oversight Board on Tuesday proposed an update of “foundational” audit standards and a requirement that the deadline for filing final documentation after completion of an audit be trimmed to 14 days from 45 days. (From CFO Dive) Startups see SOX internal control issues after going public Companies that went public before the slowdown in the IPO and SPAC markets have been having trouble complying with the internal control audit requirements of the Sarbanes-Oxley Act, according to a recent report by Deloitte. (From Accounting Today) Finance leaders: Tax and compliance is an increasing priority CFOs are continuing to address company technology needs, while balancing those needs against tightening budgets, talent issues, and the financial systems that have been impacted by recent events. (From CFO.com) Talent shortage frustrates internal auditors Forty-three percent of chief audit executives and senior internal audit leaders are concerned with finding qualified candidates as they struggle with a lack of access to the talent they need to conduct the expanding tasks of internal audit, according to Protiviti’s 2023 Next Generation Internal Audit survey. (From CFO Dive) UPCOMING EVENTS Business & Industry Conference 2023 The MACPA Business & Industry Conference will give you insight into recent trends and topics affecting not only CPAs but all financial professionals in the business and industry sectors. The B&I Conference will be in person as well as online. You will not want to miss out on hearing nationally recognized speakers Dr. Anirban Basu and Peter Margaritis! During the concurrent sessions we will only be live streaming one session, we will determine which session as we get closer to the conference! 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! Accounting Educators Symposium The modern world doesn’t work without CPAs, and there are no CPAs without accounting educators. This conference is designed for you. The Accounting Educators Symposium is an annual event that connects you with other educators, updates you on accounting industry trends, and equips you to help your students succeed. It’s about giving you the knowledge you need to better help your students succeed. Topics to be covered: MACPA Update, State Board Update, Changes to the CPA exam, Insights into the Pipeline of Accounting Students, ESG, and Ethics. We will also have a panel of recent graduates. Public practice Private equity in accounting: Is your firm ready? Signing up with a private equity partner is like nothing that most accounting firms have ever done. Even a major merger doesn’t come close, given the unusual changes in ownership structure required to wall off the attest function — to say nothing of the addition of a whole group of owners with very different philosophies from those that prevail in the accounting profession. (From Accounting Today) GPT-4 rolls A.I. tanks onto accounting’s lawn Whether it’s preparing tax returns or passing accountancy exams, ChatGPT has taken another step towards the accounting profession over the past week. But when it comes to the work accountants currently do, where are its limits and are there opportunities for firms or vendors looking to ride the A.I. wave? (From AccountingWEB) Your firm and your environment Across all the consulting professionals and active practitioners present, it was clear that opportunities were still abounding. Client demand is high, and the clients’ expectations are also high. (From CPA Practice Advisor) CAS could be your firm's solution to recruiting and capacity challenges Like many businesses across industries, accounting firms are facing significant obstacles in their pursuits to recruit skilled workers — but, unlike in other industries, the issue is unlikely to be fixed through benefits, perks and boosted compensation. While other sectors are struggling to convince skilled candidates to join their ranks, accounting firms are struggling to find qualified candidates in the first place. (From Accounting Today) How client conversations can turn tax season into opportunity season For many accountants, busy season can certainly feel more like “survival season.” However, there is a (very) small silver lining for tax season – the chance to connect with clients you may not often have the chance to speak with. (From CPA Practice Advisor) Technology 'Moore's Law' creator, Intel co-founder Gordon Moore dies at 94 Silicon Valley pioneer Gordon Moore has died at age 94 in Hawaii. Mr. Moore started working on semiconductors in the 1950s and co-founded the Intel Corporation. He famously predicted that computer processing powers would double every year, later revised to every two — an insight known as Moore’s Law. (From the BBC) 6 skills you need to stand out in the age of A.I. If you make a concerted effort to understand and develop these skills, you’ll be ready to take advantage of the opportunities found in the digital world of work. (From Fast Company) CFOs key to shaping digitization efforts: study With technology teams overloaded, the discerning CFO’s hand is crucial to shaping company digitization efforts. (From CFO Dive) From our partners 8 reasons CPAs get sued and what to do about it Whether you’re a CPA who works for yourself or you run an accounting firm that employs a dozen people, getting hit with an accounting malpractice claim can be devastating. In addition to shouldering the cost and time it takes to defend your firm, there’s also the specter of added stress and reputational harm. (From Aon) What firms can learn from recent SVB events Read this latest blog for insights from BILL CEO René Lacerte and CPA.com CEO Erik Asgeirsson on the Silicon Valley Bank incident and key lessons for firms. (From CPA.com) Why specialization is the key to firm growth More firms are realizing the benefit of specializing in practice areas and industry verticals. Specialization can open the door to increased efficiencies, improved quality and provide greater value for clients. Learn the steps to creating a niche practice. (From CPA.com) Don’t be restricted by a geographical web address While popular, country code web domains like .us and .ca can be limiting to CPAs embracing the global industry and remote work. Learn how adopting a .cpa domain can expand your possibilities and strengthen your brand. (From CPA.com) May 17-18 workshop: Ready to offer anticipatory services? Financial planning and analysis services are a high-growth advisory service area offered by top-performing CAS practices. Discover the critical components required to extend your firm’s service offering by joining the upcoming CAS Financial Planning & Analysis Workshop on May 17 and 18. (From CPA.com) Get paid now, while your clients pay later No need for negotiations with ClientCredit, an accounting fee lending solution that allows your clients to make automatic payments in installments while you get paid in total upfront. (From CPACharge) 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) 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) 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) MARYLAND ASSOCIATION OF CPAs 901 Dulaney Valley Rd, Ste 800, Towson, MD, 21204­-2683 800­-782­-2036 | MACPA.ORG Update your email preferences here