Brought to you by the Maryland Association of CPAs Women to Watch Lisa Blackmore, Faye Miller named ‘Women to Watch’ for 2017 Two outstanding business leaders — Lisa Blackmore, CPA, MBA, a partner with Squire, Lemkin + Company, LLP, and Faye Miller, CPA, a partner with RSM US LLP — have been honored by the Maryland Association of CPAs as Maryland’s “Women to Watch” for 2017. (From CPA Success) Wanted: Mentors and mentees MACPA Mentor Program expands Following a successful pilot program, the MACPA is expanding its Mentor Program this fall. Online applications for mentors / mentees to join the program must be completed by Oct. 6. The program asks for a one-year commitment; arrangements are made for virtual and / or in-person meetings through the year at the convenience of participants. A kick-off event at which pairs are introduced will take place immediately preceding Celebrate the Profession / CPA Night — the swearing-in of newly licensed CPAs. (From CPA Success) Upcoming events Tax reform GOP framework takes big step toward tax reform The tax reform plan by Republican leaders and the Trump administration is more focused on corporate taxes than individual taxes, experts say — and while it may not be the beginning of the end of tax reform, it might be the end of the beginning, as Congress now faces the difficult task of turning it into actual legislation. (From Accounting Today) What's in and what's out: The GOP tax reform proposal The word of the day is “framework” — that’s how the proposal is being characterized. It’s clear that the intention is to continue to make changes as talks progress. Forbes writer Kelly Phillips Erb breaks down the GOP tax reform plan. (From Forbes) Trump tax plan repeals most itemized deductions, AMT, estate tax President Trump and his handpicked “Big Six” group of Republican leaders finally released the latest version of their long-awaited tax reform package. As with previous proposals, the new plan promises to cut taxes for individuals and businesses while wiping out deductions and repealing other controversial tax provisions. (From CPA Practice Advisor) A breakdown of the proposed framework on tax reform Tax reform has been in the works behind the scenes for months (and some parts of it for years), but it has now been released to the public as nearly every business and individual taxpayer will be impacted. However, the framework released by Congress was short on details. (From AccountingWEB) Tax Increasing numbers of taxpayers to file at the ‘other’ tax deadline While 143 million individual tax returns were filed by July 21, 2017, the IRS expects an additional 9 million to be filed by the extended due date of Oct. 16, according to IRS Commissioner John Koskinen. The normal due date of Oct. 15 falls on a Sunday this year). (From Accounting Today) An early look at 2017 year-end planning Year-end planning this year faces an almost perfect storm of uncertainties. Leading the pack is tax reform, with basic questions remaining on what “reform” will cover and when it will become effective … if at all. Another source of uncertainty revolves around the regulatory reset that is expected soon from the Treasury Department and the Internal Revenue Service after months of consideration. (From Accounting Today) 'Tis the season for tax amnesty and voluntary disclosure programs Oklahoma and Virginia are currently holding voluntary disclosure and tax amnesty programs that offer various levels of penalty and interest waivers intended to induce payment of outstanding tax and filing of delinquent returns and reports. Other state legislatures have authorized such programs to be developed by state revenue departments and held in the near future. (From Bloomberg BNA) Creating a sales tax nexus versus a nexus for state income tax When I began this series, I explained what a Nexus was and when you need to create one, but do you know the difference between a nexus created for sales tax and a nexus for state income tax? (From AccountingWEB) Outsourced CFOs Outsourced CFO services get boost from MACPA With a tip of the hat to one of the fastest-growing segments of the accounting and finance world, the Maryland Association of CPAs and its center for learning and innovation, the Business Learning Institute, have helped plant the seeds for a community of professionals who call themselves outsourced CFOs. (From CPA Practice Advisor) Study shows shift from hiring full-time employees to using white-collar contractors A new study shows significant trends in enterprise use of external contractors; growing enterprise demand for on-demand support, influx of highly skilled contractors into the workforce, business challenges, and increased individual interest in flexible work structures. Together, the findings point to a universal movement toward an on-demand white collar workforce. (From CPA Practice Advisor) Public practice / A&A Peer review, M&A issues challenge CPAs Tightening peer review standards, and the desire to maximize potential M&A opportunities are among the top issues facing CPA firms today. (From CPA Success) How data-hosting services affect independence Under a new ethics interpretation, a CPA’s independence will be impaired when taking responsibility for hosting an attest client’s data or records. (From the Journal of Accountancy) PCAOB requests additional comment on standard for lead auditor’s use of other auditors The Public Company Accounting Oversight Board has voted to issue a supplemental request for comment on an earlier proposal regarding the lead auditor’s use of other audit auditors. (From CPA Success) Three questions in avoiding the CPA / client disconnect Whether your firm operates with clientele across many oceans, or with a smaller population in a mellow pond, it is always of the highest importance to stay connected with your clients. (From AccountingWEB) The unknowns of retirement health care: How much to save? When it comes to health care — your own, or your clients — how do you plan for an expense that defies traditional planning? Carolyn McClanahan, MD, CFP says it boils down to focusing on items where you can influence the outcome, and presents a three-tiered approach. (From CPA Success) Business and industry How rev rec changes are affecting preparers like GE, Microsoft FASB and the International Accounting Standards Board designed their converged revenue recognition standard to enhance comparability across industries. But the standard has presented different implementation challenges to the various business sectors. (From the Journal of Accountancy) Interpretive guidance issued to ease compliance with pay ratio disclosure rule The SEC issued interpretive guidance to ease compliance with its upcoming pay ratio disclosure rules. The Dodd-Frank rules were issued in 2015 and require public companies to disclose a ratio comparing their chief executive’s compensation with that of the median worker. (From Thomson Reuters’ Checkpoint Tax) Companies piling losses onto balance sheets Freewheeling reporting rules on other comprehensive income set the stage for earnings management, researchers assert. (From CFO) FASAB establishes concepts for federal agencies’ financial reporting A new statement issued by the Federal Accounting Standards Advisory Board establishes foundational concepts for federal agencies’ financial reporting. (From the Journal of Accountancy) Talent 2018 Accounting MOVE Project Survey now open The Accounting MOVE Project, founded by Moss Adams, CohnReznick, and other participating firms, has opened its 2018 survey, seeking input from firms of all sizes to gauge female leadership in public accounting. (From Accounting Today) CPAs satisfied as average salary tops six figures Two-thirds of CPAs based in the United States are satisfied with their current salary, and more than four-fifths expect to be earning more within a year, according to a new survey by the Association of International Certified Professional Accountants. (From the Journal of Accountancy) Problem solving, software skills stand out as talent needs evolve at accounting firms Accounting firms face many challenges in seeking and retaining talent amid a constantly changing environment in which skills needed to do the job are always evolving, according to a 2017 talent survey by Karbon, an accounting practice management software company. (From AccountingWEB) What motivates employees more: Rewards or punishments? To motivate employees, which should we be using: the promise of carrots or the threat of sticks? And when? (From Harvard Business Review) Technology Cloud use rising, raising importance of security As a nationally-recognized IT expert specializing in use of the technology by CPAs, Byron Patrick, a past MACPA chair, is a strong advocate for the value of the cloud to CPAs in audit, tax, business and industry, and an equally strong proponent for the need to set up responsible cloud security. (From CPA Success) Accounting leaders tap technology as top concern The common wisdom these days is that every business is a technology business, but it might be more true to say that every business is a business that wrestles with technology — trying to make the most of the opportunities it offers while minimizing the disruption and disintermediation in inevitably brings — and accounting is no exception, according to the profession’s leaders. (From Accounting Today) Lawmakers worry CPA domain name at risk of deceiving consumers Four U.S. legislators have warned the nonprofit group overseeing internet domain names that certain generic top-level domain strings, such as .cpa, could be used to deceive consumers about professional services – in this case, the services of certified public accountants. (From AccountingWEB) Confusion over what A.I. is — and is not — poses challenges for CFOs the lack of a common, clear definition of AI is a potentially troublesome issue for CFOs when deciding on new technology purchases, especially given the current proliferation of new vendors pushing AI or machine-learning solutions. (From CFO) From our partners Take the Leap from Compliance to Consulting: Nov. 28-29 With the increased velocity of technological advancements, artificial intelligence, and machine learning comes the need for all of us to better hone our relationship skills. If you are ready to develop your future-ready advisory skills, we are offering this highly acclaimed two-day workshop led by VeraSage Institute Senior Fellow and award-winning speaker Ed Kless. (From Sage) The Modern Practice: Oct. 24 Do you know the number one reason clients leave their accounting firm? We’ll give you a hint — it has to do with technology. Join Xero for this exclusive behind-the-success look at an in-depth study of accounting and bookkeeping firms across the globe. We’ll share with you how to leverage technology to add scale to your firm, while helping you learn which software mistakes to avoid. (From Xero) How to Build your Brand in a Tech-Driven World: Oct. 11 Talent is THE differentiator in achieving company goals. The future of work presents new types of dispersed and virtual teams, different expectations for growth and management, increased desire for flexibility, and rapid changes in technology. Building a successful career path requires an understanding of influence, strengths, and differentiators – your professional brand. This lunch-and-learn program will offer strategies to adapt a results-oriented, strengths-focused approach to your career path. (From OpHaus) Cloud Accounting Seminar: Oct. 2-3 Incorporating the cloud into your accounting and bookkeeping processes can revolutionize your efficiency. These seminars will give you an understanding of exactly where your firm is on the journey to cloud adoption and the best way to accelerate your progress. (From Receipt Bank) • Register for the Oct. 2 seminar • Register for the Oct. 3 seminar MARYLAND ASSOCIATION OF CPAs 901 Dulaney Valley Rd, Ste 800, Towson, MD, 21204­-2683 800­-782­-2036 | MACPA.ORG Update your email preferences here