Practice Management and Student Issue

ALABAMA CPA MAGAZINE NOVEMBER/DECEMBER 2015

P R A C T I C E M A N A G E M E N T A N D S T U D E N T I S S U E

2 THE ALABAMA CPA MAGAZINE

Things are changing……..aren’t they always. Ben Franklin is often credited with having stated that there are only two things that you can count on in this world….death and taxes. We probably ought to add a third item to that list…..change.

One of the changes that the AICPA has been focused on in recent months is the change in the nature of the accounting work force. Much has been written about the millennials lately and the AICPA has gotten in on that discussion, as well. We have heard a lot from our professional leaders about how those entering our workforce now have different motivations from most of us and how accounting professionals need to adjust recruiting and certain aspects of practice management to be successful in attracting and keeping the best and brightest. We are hearing from various sources that those in the millennial generation are perceived to be a bit less interested in the financial rewards of work and more interested in fulfillment. That group is often characterized as wanting and needing constant feedback about the quality of their work while having a need to be stretched by what they do. One of the things I find refreshing about this group is that they do seem to have a greater desire to want to give back than those in my generation did at the same point in our lives.

It is interesting to me that this group is often perceived as being lazy. As you know, I work with college students every day, and I will tell you that I don’t see that. They are interested in fulfillment. They often talk about “work/life integration”. To them that seems to be a set of circumstances in which they enjoy the people they work with and are making a difference with what they do in addition to just earning a good paycheck. Frankly, I don’t know that I see that as a negative. It’s certainly different from the way I thought when I entered the profession, but I don’t know that it is a bad thing.

How current practitioners might integrate that into the way an accounting practice is managed is something the leaders of our profession would like for you to give some thought to. Maybe it would be wise to let the new hires get a glimpse of the big picture a bit earlier. If they understand how their job helps clients to accomplish their dreams and provide financial security for themselves and their families, it is very likely to motivate them.

Another interesting point related to practice management and millennials is the number of current accounting majors who choose to sit for the CPA exam. While the number of college students majoring in accounting is at an all-time high, the number of candidates sitting for the CPA exam has been flat for a while. In order to replace the Baby Boomers that are leaving the profession over the next few years, that trend will need to change. AICPA research indicates that one of the three major factors affecting a young professional’s decision on whether to sit for the CPA exam is the incentives offered by the employer including time off to study and compensation increases or bonuses tied directly to passing the exam. Food for thought for those looking for staff members that will be the ones to continue your practice and fund your retirement!

There is no doubt that change in our profession is happening and will continue to occur. I think we would all be wise to study the factors creating those changes and attempt to manage them as best we can both for the benefit of the profession and ourselves. Best of luck to all of us on that adventure!

Lowell

THE ALABAMA CPA MAGAZINE

Alabama Society of

Certified Public Accountants

P.O. Box 242987

Montgomery, Alabama 36124-2987

1-800-227-1711

334-834-7650

www.ascpa.org

OFFICERS

Dr. Lowell S. Broom, Chair

James R. L. Carroll, Chair-Elect

Don McCleod, Past Chair

BOARD OF DIRECTORS

Lynne N. Bozeman

Michael L. Brand

Caitlin F. Glass

Paul Marcus Hamilton

M. Buddy Johnsey

Lisa M. McKinney

Gregory E. Sellers

Dennis E. Sherrin

Rachel M. Taylor

Macaroy Underwood

AICPA COUNCIL MEMBERS

Dr. Lowell S. Broom

E. Lamar Reeves

John P. Shank

Jimmy L. Williamson,

Past Chair, AICPA

The Alabama CPA Magazine is published by

Alabama Society of Certified Public Accountants

as a membership service to Society members.

Views and opinions appearing in this publication

are not necessarily endorsed by the ASCPA. The

deadline for submitting materials for publication is

the first of the month preceding issue date.

Jeannine P. Birmingham, CPA, CAE, CGMA

President and CEO

Diane L. Christy, Editor

ON THE COVER

Denesha Judkins, Jasmine James, Shaquilla

Thornton and Maria Rives of Alabama State

University at Accounting Interview Day 2015

Message from the Chair...

It’s what CGMA stands for.

A new designation representing accomplished professionals that drive and deliver business success, worldwide.

Find out more at cgma.org

GR WTH

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THE ALABAMA CPA MAGAZINE 3


No, that’s not a typo, it’s definitely Driving to Miss Daisy instead of Driving Miss Daisy. Your ASCPA

staff is always looking at ways in which we can 1. make a contribution to the community, 2. make connections within the community and 3. inspire others to do the same.

Roger Spain, an ASCPA member with Aldridge Borden, suggested getting involved with a local service for Montgomery area seniors. The Montgomery Area Council on Aging, MACOA, needs help with delivering nutritious, hot lunches through their Meals on Wheels program. They have funding for the food, and a way to get the meals prepared, but recent budget cuts eliminated some of their drivers. They are developing corporate sponsors to fill the gap. After a voice vote at the weekly staff meeting, it’s a done deal for ASCPA staff.

Here’s how it works: the ASCPA will send two staff members to pick up meals from a local hospital for 8-10 MACOA clients. The volunteers are assigned a route for the same day each week and will deliver the meals to those same folks, week in, week out. That’s it, so simple.

CPE Director Jessica Roberts spoke of her experience when she worked for the Central Alabama Community Foundation.

“Because you see the same people every week, you really bond with them. You may be the only person who stops by their house that day and the contact is so meaningful – for both parties. They may want to chat for a minute or two! I was really sad when I learned one of my ladies had passed away. I’m excited that we are taking this on.”

For more information on the program and to become a corporate sponsor in the Montgomery area, contact MACOA at 334.263.0532. Or for a program in your area, contact Meals on Wheels America, 888-998-6325, ww w.mowaa.org.

Driving to Miss Daisy

ASCPA Forms Professional Standards Committee

Jason Miller, Chair

I am excited to announce that in October the ASCPA established a Professional Standards Committee! This Committee will enhance

membership benefits, as well as allow our Society to play a larger role in the standard setting process. The Committee’s primary focus is to support our membership in the area of financial reporting by

evaluating and commenting on exposure drafts and informing the membership of accounting standard updates once issued. This focus follows the Society’s goal to protect, educate, and connect our over 6,700 members.

We can protect our members by analyzing expo-sure drafts, collecting Committee and member feed-back on the exposures, and submitting comment let-

ters on behalf of the Society. This feedback is critical to insure that standard setters are provided with the valuable insights of those who will have to implement the potential standards. Our Society rep-resents a wide range of constituents ranging from small business to big business, government to private, sole practitioners to national firms. I feel it is important for feedback to be obtained from all af-fected groups. This is especially true for those groups who will have to implement changes but lack the resources to affect or properly implement change.

As accounting standard updates are issued, we will educate members on the issuance and their primary effects. Within the last several years, I believe everyone has noticed an increase in the standards being issued. With this increased activity, it can often be difficult to track when standards are issued and when the standards take effect. By disseminating this information to our membership and posting to the Society’s various media feeds, we will provide our membership with another avenue to receive this critical information.

Another great effect of starting this Committee is the ability to connect members. This connection starts by the initial volunteers who formed the Committee. I would personally like to thank Derrel Curry, Jeremy Blackburn, John Mastin, Mike Brand, and Rachel Godwin for taking time out of their valuable schedules to contribute to this worthy cause. Without this Committee, several of us may not have connected. In addition to the core group, this Committee will receive feedback and engage in conversations with our fellow members on items of interest to individual members. Also, for any members interested in being a sounding board to the Committee, please contact Jason Miller [email protected]. A sounding board would be useful for us to bounce our ideas off other parties who would be affected by a particular standard being exposed.

Again, I just want to say I am excited at the value this Committee can bring to our membership. I would like to thank Jeannine Birmingham, the officers, and the Board of Directors for forming the Professional Standards Committee. We look forward to serving you!

Jason Miller


Managing your own accounting practice

is a gratifying and fulfilling experience, especially if you’ve worked many years to make that dream a reality.

However, many practitioners face similar pain points when it comes to organizing data, tracking projects and managing finances. In a busi-ness environment filled with com-plex client expectations, constant legislative changes and advancing technology, addressing these pain points by re-evaluating your internal work processes is more important than ever.

Let’s take a look at some of the most common pain points of prac-tice management and common sense approaches to solving them.

1. Organizing Your Client Data

Needless to say, unorganized client data can lead to a complicated work environment and ultimately a disappointing client experi-ence. We’ve all heard the horror stories of tax returns being sent to the wrong address or in-voices going unpaid because a client moved offices.

These problems often occur because most firms use numerous systems to address their compliance, accounting, payroll, audit, CRM, email and document management needs. With so many access points, client data is nearly impossible to keep up to date and organized.

The simple answer to this challenge is a single database where changes and updates only have to be made one time. This is where an all-encompassing practice management system comes into play. With a single data entry point for all information, you can ensure consistency, accuracy and time savings for the entire firm—and this leads to a seamless client experience.

Managing an Accounting FirmBefore you make the commitment to

implementing a single system, however, make sure the owner or partners of the firm have bought in and are supportive of the process. If staff sees that management isn’t following the guidelines, they’re much less likely to comply.

It’s also important to establish a champion within the firm to oversee the change. Give them accountability and clear measurements for success and make sure they have sufficient time to manage the process. Document the new process very clearly and make sure every member of the staff knows the firm’s expectations.

Most importantly, make sure to properly train staff on the new process and follow up frequently to confirm their understanding and ensure that they’re following the steps properly. If they understand the benefits of using a single system and the ways in which it will help them get their job done more quickly, easily and efficiently, they will be much more engaged in the process.

2. Tracking Your Projects

Whether you refer to it as workflow, due date tracking or project management, keep-ing track of your client obligations can be a big challenge. From current work to anticipated projects, it is imperative for a successful firm to keep track of who is working on what and what the real-time status is so that client ques-tions can be answered in the same way, by any staff member. Further, your staff should have access to this information at any time and from any location. As we all know, clients now expect to call, email or text their firm and receive a response in real time.

With an integrated project management system that is part of an overall practice management system, you can track all aspects of your firm’s projects, including client/contact management, resource management, notes and interaction tracking.

As you evaluate and implement a project management tracking system, ensure that the system is not only easy to set up and implement but also allows for future growth and refinement, as the staff become more adept at tracking and updating the system. If the system is too complex and difficult to maintain, the staff will quit using it, which could result in a firm-wide breakdown in project tracking. You should also make certain that the system has a real-time dashboard and reporting function that allows any staff member in the firm to check on the status of a project in real time, in order to address any client inquiry quickly.

3. Managing Your Finances

Many firms think they have a handle on where they’re making and losing money, and don’t see the need to keep track of it in detail. These firms are often surprised at the incred-ible visibility they get into their business when they implement a practice management sys-tem.

In order to ensure the practice is running at its most optimal state, it’s important that you are able to answer questions about the type of work you do best, as well as which staff members are most productive and contributing most to the bottom line. It’s also vital to know which clients are the most profitable, as well as those clients for which you should raise fees or let go.

By addressing common pain points with a comprehensive practice management system, a more efficient and productive work environ-ment emerges, giving you more time to focus providing the best possible experience for your clients.

It is important to realize, however, that mak-ing this change is a major undertaking. Without the support of the entire firm, it will be difficult to see the implementation through to comple-tion. So, take your time, do your research, and make a thoughtful plan of action. If you do, you’ll undoubtedly realize the benefits are well worth the investment—and rest assured you’ll be providing your firm with a foundation of ef-ficiency, productivity and growth for years to come. ________Matt Jagst is director of product management of the professional segment with the Tax & Accounting business of Thomson Reuters.

Doing It Better

It’s important to establish a champion within the firm to oversee the change. Give

them accountability and clear measurements for success and make sure they have sufficient time to manage the process.


S O L U T I O N S

H A R D S H O E S T O F I L L ? Where filling someone’s shoes is concerned, we get it. Fit goes beyond the shoe’s size to the style and comfort of the wearer. Otherwise, wouldn’t everyone walk around in the same shoes?

We believe that when you connect the right person to the right job and the right individual to the right company, the shoes will be just right. We’re here to help you find the person to step into these shoes, And to make sure they can HIT THE GROUND RUNNING.

www.itacsolutions.comTECHNOLOGY | CORPORATE PROFESSIONAL/CLERICAL

GOVERNMENT/ENGINEERING | ACCOUNTING/FINANCE Providing temporary/contract, contract-to-hire, and direct hire staffing solutions.

Birmingham | Mobile | Huntsville | Nashville

PROMOTIONS AND NEW POSITIONSJackson Thornton announced that Eden Thornton recently joined the firm as a senior manager. With more than 20 years of experience, Thorn-ton will focus primarily on tax and assurance services for closely held businesses and the construction indus-try. She is a graduate of Troy University and is an active member of the Prattville Ro-tary Club.

Smith Dukes announced that Autumn E. Brown has been promoted to se-nior tax accountant. Autumn received her undergraduate degree with honors in 2010 from the University of South-ern Mississippi and a masters of professional accountancy in 2011.

James C. White, Jr. has been named a partner in Banks, Finley, White & Co., one of the oldest black-owned firms in the U.S. White is a graduate of the University of Maryland and has over 18 years of experience. He has worked primarily with publicly-traded compa-nies with an emphasis on financial reporting.

Wilkins Miller announced that Jack Johnson, Mandy Parker and Frank Smith have all been promoted to the position of senior accountant. Johnson’s area of special concentration includes audit and tax. Johnson became an intern for Wilkins Miller in 2013 and has now worked his way to senior accountant. He graduated from Auburn University in 2007 with a bachelor’s degree in English and completed his masters in accounting from University of South Alabama in 2013.

Parker’s area of special con-centration also includes audit and tax. Parker joined the firm in 2012, graduated from the University of Alabama summa cum laude in 2012 and has a master of accoun-tancy from the University of South Alabama.

Smith’s area of special concentration includes

M E M B E R S I N M O T I O N

audit and tax with a focus on contractor cli-ents. Smith graduated from the University of Alabama in 2004 with a bachelor of science in finance. He completed additional accounting courses at the University of South Alabama in 2012 and was certified in 2015.

COMMUNITY NEWS

Barfield, Murphy, Shank & Smith (BMSS) is pleased to announce their award as one of the Best Accounting Firms to Work for by Ac-counting Today. This is the seventh time the firm has been named to this prestigious list. Accounting Today invited firms from across the country to participate in a two-part survey. The first part consists of evaluating each nom-inated firm’s workplace policies, practices, systems, philosophy and demographics. The second part consists of an employee survey to measure their overall experience.

Warren Averett Technology Group, a pre-mier technology consulting and outsourced IT provider, and Kianoff & Associates, a leading business software consulting group, announce the joining of their firms. Their combined experience brings together best-in-class technology services, expanding the capabilities and resources, and creating ad-ditional opportunities for our professionals and our clients. Visit www.watechgroup.com/kianoff to learn more about the merger.

Mandy Parker

Jack Johnson

Eden Thornton

Frank Smith

Autumn Brown

REMEMBERINGRobert Clarence Bibb, Jr.January 1, 1938 – September 3, 2015Huntsville, Alabama / Certificate #839

Bob Bibb was a fifth generation Alabam-ian, a direct descendent of the second governor of Alabama, Thomas Bibb. He was graduated from Decatur High School in 1956 at attended the University of Alabama where he was a member of Pi Kappa Alpha. Following graduation he served in the U.S. Army 1962-64 and in the reserves 1964-67. He became a CPA in 1969. In 1978 he founded Bibb & Associates and was active with the firm until retiring in 2010. Bibb was active in the community and a fan of Crimson Tide football. The family has requested that memorial contributions be made to the Michael J. Fox Foundation, www.michaelfox.org or the Huntsville Parkinson’s Support Group, PO Box 18721, Huntsville, AL 35804.


how the Department plans to administer the sanction against the tax exempt failure:

“If the entity fails to obtain a certificate prior to January 1, 2016, their current exemption will be invalid until: 1. They obtain a certificate. 2. Any subsequent certificate must be renewed

prior to expiration and reporting requirements must be met before a certificate will be re-newed.

3. If a certificate is not renewed prior to the ex-piration date, the entity will not be allowed a tax exemption until a certificate is obtained.

4. If an entity fails to meet the reporting require-ments it may be barred from the use of any certificate for a. up to six months for the first offense and b. one year for the second offense. c. On the third offense, the entity shall be

barred from the use of any certificate un-til such time as the entity is authorized to obtain a certificate of exemption pursuant to a joint resolution by the Legislature.

Why this new change? According to the De-partment Representative, it was to meet the re-quirement of quantifying the loss revenue from this tax exemption, which must be reported to the Legislative Fiscal Office (LFO) to provide the Alabama Legislature for budget purposes.

Act No. 2015-448 Simplified Seller Use Tax Remittance. This Act allows out-of -state vendors to use a Flat 8% local tax effective October 1, 2015 (tax returns due November 20, 2015). It also allows the out-of-state vendor to participate in a program to collect, report, and remit a flat eight percent (8 %) seller use tax on all sales made into Alabama. An eligible seller is one that sells tangible personal property or a service into the state of Alabama from an inventory or location outside the state, but does not have a physical presence in the state. This is a long overdue measure that this writer has championed for many years. Hopefully the simplification will lead to more compliance and stopping the revenue loss on internet sales.

Other Revenue Raiser• ncrease of 15 cents for each prescription

filled or refilled for a citizen of Alabama effective 9/1/15.

The 2015 budget balancing act that con-sumed most of the regular legislative ses-

sion (as well as two special sessions) pro-duced only minor success. The first page in any government’s budget writing primer is increasing tax revenue. Sales and use tax has always been an easy target, and the 2015 leg-islative sessions proved no exception. I have highlighted some of the recent changes, as well as some prior changes that may impact your clients. Before I begin, I would like to thank Bruce Ely of Bradley Arant Boult Cum-mings LLP and the Department of Revenue for their help in educating this old goat on the finer points of Act No. 2015-237.

Act No. 2015-237 Requires Yearly Regis-tration for Exemption. The Department of Revenue’s new requirement that entities (other than government entities) granted exemption from sales, use, and lodgings tax under Ala-bama Code §40-23-5 or Chapter 9 must now register and obtain an exemption certificate by 12/31/15 to keep their exemption in 2016 and beyond. The entity registers by filing Form STE – 1 by December 31st of 2015 and every year thereafter. Form STE-1 can be downloaded from the department’s website at http://rev-enue.alabama.gov/salestax/stexa1.pdf.

According to the Department Representa-tive, the entity will not be tax exempt in 2016 without the exemption. Any of your clients that sell to this group can no longer rely on

§40-23-5 or other similar exemptions, and must obtain the tax exempt’s cer-tification of exemption for all sales after

January 1, 2016. Failure to obtain the exemption certificate by January 1, 2016 will subject the former tax exempt entity to even-tual revocation of their exemption. According to the Department Representative, here is

• Act No. 2015-536, which imposes a sec-ondary supplemental privilege assessment at an annual rate of $401.28 or $33.44 a month for each bed in a nursing facility. This amount will increase the total annual nursing facility rate from $4,028.04 to $4,429.32 or $369.11 per month per bed. This change will be effective October 1, 2015.

One last note on sales tax collection & exemptions for your retailing clients:• Just like your jar of peanut butter, all Depart-

ment-issued sales tax exemption certificates now have expiration dates, including manufac-turers. So be watchful the ones you have are current for the date of sale. Beginning January 1, 2016, all vendors must obtain a copy of the certificate of exemption before selling ex-tax unless selling to a governmental agency.

• I tell my retail clients to err on the conservative side and charge sales tax when in doubt. Fail-ure can mean a profit loss of eight to ten percent, not counting interest & penalties.

• Contractors & Subcontractors please note: Form STC-1, Sales and Use Tax Certificate of Exemption for Government Entity Proj-ect. Exemption Certificates will be issued as of the project start date or the received date of the application. If, upon receipt of the application, the project has already commenced, the certificate will be issued as of the received date of the application. Any purchases made prior to the issuance of a certificate will not be exempt.

I hope this has been somewhat helpful. Have a wonderful holiday season and a Happy New Tax Year 2016! -Tom_____Tom Zoebelein, CPA, Tax Manager110 Office Park Drive, Suite 100, Birmingham, AL 35223, 205-323-5440 |www.pearcebevill.com [email protected]

To access the relevant information on the ADOR website, go to www.ador.state.al.us. Click on the following: Divisions/Property Tax tab/Taxes Administered by this Section/Personal Property tab

Protect Your Client’s Continued Statutory Exempt Status and Have Your Clients Register Their Exempt Status Before January 1, 16Important 2015 Changes to Alabama Sales, Use, and Lodging Tax Nota Bene: Statutory Tax Exemptions Expire 12/31/15.

Zoebelein on Tax


Congratulations to the 2015/16 ASCPA Educational Foundation Scholarship Recipients

William BaldwinUniversity of West Alabama

John BorowskiUniversity of Mobile

Jessica BrownUniversity of South Alabama

Lauren ClevelandAuburn University

Aubrey DodtUniversity of Alabama at

Birmingham

Summer FaulknerTroy University

Kalyn FullerSamford University University

of Alabama

Rebecca GlosemeyerAuburn University

James HayleyUniversity of Mobile

Stephanie HoweUniversity of Montevallo

Tim HuffordUniversity of Alabama in

Huntsville

Symone HusbandsTuskegee University

“My scholarship has given me the peace of

mind to focus on my studies. It also helped

me attend the National Association of Black

Accountants (NABA) Southern Region

Conference in Atlanta in September.”

Nichole Green, Alabama State University

The Alabama Society of

CPAs’ scholarship helped alleviate

the financial burden on me and my

family, especially with my husband

and son in college concurrently. This

scholarship allowed me to concentrate

more on my studies instead of on

ways to make my tuition payments.

Thank you Alabama Society of CPA!

Jennifer Saringo Paris Troy University Dothan

Christina GlassUniversity of Alabama


Congratulations to the 2015/16 ASCPA Educational Foundation Scholarship Recipients

Demetrius JohnsAthens State University

Ambur LoveUniversity of North Alabama

Josh McGowanTroy University

Chang ParkUniversity of Alabama at

Birmingham

Ashley PurvisSpring Hill College

Brianna RobertsJacksonville State University

Michelle RogersTroy University Montgomery

Chelsea RolloSamford University

Kaylen StanleyUniversity of Alabama

Quala ThompsonAthens State University

Kendall WilliamsAlabama State University

Bryan WomackAlabama State University

“Thanks to the ASCPA

scholarship I have been able

to pursue higher education

through the MAcc program.

Without a doubt I would highly

recommend to all accounting

students to join the ASCPA, not

only for its scholarship program,

but it fantastic networking

opportunities as well.”

Walter DulaneyAuburn Montgomery

“Being a recipient of the Alabama

Society of CPAs’ scholarship has

allowed me to spend less time

at work and more time pursuing

my goal of obtaining my Masters

of Accountancy and becoming

a CPA. I am extremely grateful

for their generosity and investment

in my education and future.”

Jasmine Pettaway University of Alabama


John Shank, Chair

The Educational Foundation was begun in 1967 as a way to support college ac-

counting majors. The fund itself has grown through your generosity, and the awards have also grown, now providing $2500 for qualified students. The board meets quar-terly to discuss

Early each year applications are distrib-uted to department heads at 23 college ac-counting programs. Both ASCPA staff and the Educational Foundation Board of Direc-tors screen and select the recipients for gen-eral scholarships at each of the schools, for two Kassouf & Co. endowed scholarships at the University of Alabama and at Auburn University, for the Pearce Bevill Minority Scholarship at the University of Alabama at Birmingham, and for the 5 diversity in ac-counting and 2 financial need scholarships (Chairman’s Awards) created as a result of the Fortune Forward capital campaign in 2011.

We hope that you will continue to support the good works of your ASCPA Educational Foundation. As more and more career op-portunities are presented to our youth, we need to make sure that we reach the best and brightest and help create an environ-ment (which includes financial consider-ations) that keeps them in our profession.

We also want to offer a helping hand to those who may not be financially able to pay the high cost of a college education, just like many of us were helped.

Did you know that, through your Educa-tional Foundation, we gave 32 scholarships for a total of $77,000 this past year?

Please consider the Educational Foun-dation as you plan your charitable giving throughout the year and, in particular, at the end of the year. We would also be happy to talk to you about planned giving oppor-tunities. Please reach out to Diane Christy at 334.386.5752, [email protected].

Thank you to all the amazing speakers at the 8th annual Educator Conference, held on October 9. Special thanks to Mike Duffy and Karen Reetz of Wiley CPAexcel, sponsor for the program. To learn more about the work of the Education Committee and to volunteer contact Dena Mitchell, [email protected].

Educational Foundation Board of DirectorsThe board is currently comprised of four immediate past chairs of the ASCPA and two educators. They meet quarterly to discuss the board’s fiscal condition, to review proposals for projects or support outside of annually-awarded academic scholarships and to conduct other business.

John P. Shank, Chair Barfield, Murphy, Shank & Smith

Lowell S. Broom Samford University’s Brock School of Business

Renee B. Hubbard Jackson Thornton & Co.

Amanda N. Paul Troy University School of Accountancy

E. Lamar Reeves Smith, Dukes & Buckalew

Steve A. Shelton Way, Ray Shelton & Co.

In 2011 the Foundation conducted a capital campaign to increase its endowment. More than $620,000 was raised, resulting in an increase in the amount of each scholarship award from $1500 to $2500. ASCPA interns receive the equivalent amount in a stipend at the conclusion of their roughly 13 week intern period.

ASCPA Educational Foundation

2015 EDUCATOR CONFERENCE


A ssume one of your tax clients instructs you to provide select information from your file

to a third party. You know the information is incomplete and would be misleading for the third party’s specific use. What do you do?

Likely, if you are a tax return preparer not subject to the AICPA’s Code of Professional Conduct, you would send the information as instructed because you would not want to risk losing the client’s business. As long as no laws are broken, that would be just good business practice.

If you are an attorney, you might do the same thing, but for a different reason. Many attorneys believe they are ethically obligated to advance a client’s interest within the bounds of the law without necessarily considering the morality of a client’s actions. Thus, as long as no laws are broken, many would consider it just good legal practice.

However, and in contrast to business peo-ple and attorneys, CPAs are generally seen as having a greater ethical obligation to third parties and the public. So much so that the public has reason to think, and tends to think, of CPAs as watchdogs for the public interest. To understand why that is so, it helps to re-member who brought us to this dance – it was the public.

Public accounting as a profession in the United States got its big kick-start in the 1930s with passage of the Securities Acts of 1933 and 1934. That legislation was responsive to the stock market scandals of the 1920s and early 30s – in particular the 1932 Swedish Match Company investment scheme that, in current dollars, might rival investor losses in Enron. For the first time, federal law required public companies to include audited financial statements in their registration statements and annual reports.

At the time, there was considerable debate over whether the government should do the auditing. The prestige of public accounting is owed, in large part, to those who persuaded the U.S. Senate Committee on Banking and Currency not to assign the external audit function to a government agency. Essentially, the argument was, and continues to be, that CPAs - in fact all accountants – can be trusted to be accountable to the public at large.

Recently, Olivia Kirtley, former chair of the AICPA board of directors and current president of the International Federation of

ETHICALLY SPEAKING:

Let’s Not Forget Who Brought Us to the DanceGeorge W. DuRant, CPA/ABV, CFF, ASA

Accountants (IFAC), posted the following on the AICPA Insights blog: “I’ve always thought the world would be a better place if only there were more professional accountants working throughout organizations. Each and every day, we bring transparency and accountability to businesses and governments around the globe. We promote financial integrity, expose wrongdoing, and lift the veil of uncertainty to shine light on the truth. When you think about it, we are much like the Swiss-Army knife for modern business—equipped to bring solutions in countless ways.”

Without regard to the type of service per-formed (audit, tax, litigation support or other services), the AICPA Code of Professional Conduct obligates members to always act in the public interest, always honor the public trust, and always demonstrate a commitment to professionalism (§0.300.030.01). Our obli-gation to the public interest is far more than just a lofty aspiration. George Oliver May, one of the giants of the accounting profession ob-served in 1932, that accountants can be seen to have greater ethical obligations to persons who are not clients than other professionals such as lawyers and physicians.

As the late Harvey Kapnick (chairman and chief executive of Arthur Andersen from 1970 to 1979) put it: “The accounting profession is – or should be – the link between responsible business and the public in providing adequate financial data in an understandable manner for use in arriving at sound, unbiased conclusions about the effectiveness of business enterprises in managing our economic wealth for the overall benefit of society.” 1

Kapnick succinctly described the account-ing profession’s public service calling. It is our integrity and objectivity that warrants the public trust. It is our fidelity to that trust that makes us professional and different from other business people and attorneys.

Acting in the public interest can and of-ten does conflict with a client’s interest or the CPA’s self-interest. The Code provides that CPAs must resolve conflicting pressures from clients, credit grantors, governments, employ-ers, investors, the business and financial com-munity, and others by acting “with integrity, guided by the precept that when members fulfill their responsibility to the public, clients’ and employers’ interests are best served” (§0.300.030.03).

The “conflict” dilemma described at the beginning of this column has a multitude of variations in practice, all with the same solution. For example, a client asks you to prepare a tax return based on information that you know or suspect is wrong; what do you do? Or, you are asked to prepare cash basis financial statements for an insolvent client seeking capital; what do you do? In each case, acting with integrity and objectivity in the public interest requires subordination of all other interests, including the CPA’s own interest as a business person.

Fortunately, most clients do want to act morally and legally. When tempted to do otherwise, they welcome a virtuous response from their CPA. For the few who do not, we should remember that helping them obtain an unjust result is the same as helping them to steal.

We are at the dance because the public trusts us. Let’s keep it that way.________George DuRant is a member of DuRant, Schraibman & Lindsay, LLC in Columbia, South Carolina. He currently serves as a member of the AICPA’s Joint Trial Board and is a past president of SCACPA’s Central Chapter. This article was reprinted with per-mission of the SCACPA. 1 Kapnick, Harvey, Accounting and Financial Reporting

In the Public Interest, Arthur Andersen & Co. 1974,

Vol. 1


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1. When did you decide you wanted to major in accounting? Did you take any courses in high school which influenced you?

I decided I wanted to major in accounting my senior year of high school. I had always wanted to be a teacher. However, the conversations I overheard from both primary and secondary school teachers expressed dissatisfaction with their pay but also how much they loved their jobs. I knew as an accounting major I would most likely always be able to build a career, be compensated well, and teach at the college level if I desired. Unfortunately, at my high school, due to its small size there were limited classes outside of core subjects and those electives required for graduation.

2. Our Young CPA Board is working hard on a student recruitment campaign. What would have been the most persuasive message for them to bring to you as a high school student?

As a high school student, I’d say simply telling me about the profession in general, what practitioners do on a daily basis and relating personal experiences would have had a tremendous impact. Maybe sharing handouts with some of the basic principles of accounting would illustrate the nuts and bolts. Personally, I didn’t know much about the accounting profession. As a result, I did some research and couldn’t resist articles titled “The Top 10 Paying Careers” or “The Top Fastest Growing Professions.” I know that a Young CPA’s own story would help me gauge whether I could see myself in their situation.

3. Tell us about your inspiration/motivation. Did you have a mentor in high school? In college? Where did you go to high school?

I’ve had one mentor in accounting and that is one of my professors at Alabama State University, Ms. Jorja Bradford. She takes the time to develop relationships with her students and is so approachable and easy to

talk to. You can go to her to talk about things other than school when needed and she will listen intently, with an open-mind, and give her honest opinion. She is an extraordinary teacher and I have learned so much from her that will be beneficial to my future career.

4. Was there a member of your family or a family friend who was a CPA?

I have a great uncle who is a CPA and passed the exam his first time. Though I’m not super close to him, I keep [his achievement] in the back of mind as motivation. It’s a reminder that I can accomplish anything I set my mind to.

5. Tell us about your experience as an accounting major at Alabama State.

I graduated summa cum laude from Calhoun Community College in the spring of 2012 with an A.S. degree in general studies and transferred to Alabama State the following fall. As a senior at ASU, I can say my experience has been more than I ever imagined. I’ve made some life-long friends with students and faculty, I have been an active member of the business honor society, Delta Mu Delta (I’m now the chapter president), and have learned so much more about accounting than I thought possible because of the outstanding professors and their experiences in the field.

6. What are some community service projects that you’ve been involved with?

This past August I participated in Devoted 24/7. It’s a week that the students of the Landmark Campus Ministry, along with other campus ministries, dedicated their time to being devoted to God in many different ways. The event for the Friday of that week was devoted to service. I went with a group to Common Ground Montgomery. We took

Rachel Cochran

Fall Intern Profile

Continued on page 15


RODNEY HAWKINS – Chair Supervisor, Himmelwright, Huguley & Boles, OpelikaHawkins is from east Alabama, growing up in Alexander City and living currently in Opelika. So naturally he attended Auburn University, ended up with his BSBA and MAcc. On his bucket list are travelling to Ireland and the UK, which he also considers his ideal vacation destination. If he weren’t a CPA he’d be a skilled blue-collar guy, most likely a welder.

BEST MOMENT AS A CPA: “Being on the front cover of the ASCPA magazine.”

LORI HALL – Vice Chair Bank Independent, Muscle ShoalsA native of Tuscumbia and resident of Muscle Shoals, Hall earned both her bachelor’s degree and MBA from the University of West Alabama. She is assistant con-troller and manager of the accounting department at Bank Independent. Hall wants to travel and her desti-nation is “everywhere”.

I’D LIKE AN UNLIMITED SUPPLY OF: “Groceries. Then I wouldn’t have to shop for them.”

ALLISON GUICE – Secretary Senior Manager – Jackson Thornton, MontgomeryGuice attended Auburn Montgomery and has both an undergraduate degree and MBA. She has a passion for children and has winning Survivor on her bucket list. If she weren’t a CPA she’d be a ballet dancer or magazine editor. Leadership Academy Class II

IF I COULD HAVE AN ENDLESS SUPPLY OF ANYTHING IT WOULD BE: “Key lime pie” TRENTON SHEPHERD – Golf Chair Shepherd has a passion for the outdoors. He has the Master’s golf tournament on his bucket list. He’s from Northport and didn’t stray very far from home to attend the University of Alabama. He has both his bachelor’s and MAcc from UA.

BEST MOMENT AS A CPA: “Assisting with the Young CPA Charity Golf Tournament this year and learning firsthand the impact it has on The Exceptional Foundation.”

JEFF SIMS – Classroom Blitz Chair Manager - Dent, Baker & Co., BirminghamFrom Pinson, Alabama, Sims has a passion for teaching others and would be a teacher if he were not a CPA. He has a fear of heights, but has an Antarctic cruise or rafting the Colorado River through the Grand Canyon on his bucket list! Leadership Academy Class III

LATE NIGHT SNACK: “Popcorn or Fruit Loops”

BEN ADAMS – Staff accountant Byrd, Smalley & Adams, DecaturThis UA grad loves sports and would be a coach if he were not a CPA. His ideal vacation spot is on a Caribbean island with an endless supply of bubblegum or sweets.

BUCKET LIST: “Attending some of the world’s premier sporting events.” ANDREA ARMSTRONG – Senior accountant Jamison Money Farmer, TuscaloosaArmstrong has a strong affinity for two things: chocolate and the Dominican Republic. She honeymooned there and recently went on a mission trip with Feed My Starving Children. An amazing experience for her. She’d work as a missionary full-time if she were not a CPA. Endless supply of…chocolate. Favorite late night snack….chocolate. She graduated from the University of Alabama with both undergraduate and MAcc degrees.

WHAT SCARES YOU: “The dark. My big brother made me watch Are You Afraid of the Dark? when I was little!”

JOHN BEDSOLE Kalifeh, Bedsole & Company, Mobile Leadership Academy Class IVA graduate of both the University of Alabama and the University of North Carolina at Chapel Hill, Bedsole has an undergraduate degree and two master’s degrees – an MA in economics and a MAcc. On his bucket list is obtaining his SCUBA certificate, although his ideal vacation spot is Montana! He uses late night injections of McDonald’s French fries to keep him going, but fears phone calls on April 14.

IF I COULD HAVE AN UNLIMITED SUPPLY OF ANYTHING: It would be Tuna sashimi. CATHERINE CASEY – Senior Accountant Carr, Riggs & Ingram, BirminghamCasey is a graduate of Rhodes College and completed her master’s degree at Samford. She has a passion for working with local governments and small businesses and considers Monterey, California an ideal vacation destination. If she weren’t a CPA she’d be a public health professional, snacking late night on hummus and pita with an unlimited supply of Icebox Cold Brewed coffee (Birmingham-based company).

ON MY BUCKET LIST: “Seeing the northern lights.”

KATE FLUKER – Supervisor Barfield Murphy Shank and Smith, BirminghamFluker is a self-described Army brat whose footloose upbringing has given her the motivation to travel extensively. Visits to all seven continents are on her bucket list. She’d have popcorn to snack on and a personal chef serving healthy meals. Her personal

Meet the Young CPA Cabinet


faith has led her to mentor high school girls. Currently attending Class V of Leadership Academy.

BEST MOMENT AS A CPA: “Observing the abstract become real when you consult with a client, putting a human face on facts and figures.” DANA HESS, Tax manager – estate and trust tax specialist – Jackson Thornton, MontgomeryHess was a double major in accounting and IS while at Auburn. She wants to visit each state at least once, with a generous supply of pumpkin spice cookies to fuel her. She is passionate about learning new software and equally passionate about enjoying college football with her family. (It was such a close call that she didn’t know which was the better answer!) Leadership Academy alumna

IF I WERE NOT A CPA: “I’d like to open an animal rescue center. There is something soothing about being around animals that just makes everything better.” BENJAMIN MACDONALD – Senior staff accountant Joan Sanders & Assoc., AnnistonMacDonald is a man with lists. On his bucket list: “I would love to travel to every country in the world.” He loves the outdoors and a mountain retreat in Colorado is his idea of an ideal vacation. Big picture fears are unfunded pension liability, the state of the world’s economy and a disregard for planet earth and its resources.

IF I WEREN’T A CPA I’D BE: “An insurance salesman. As a young boy, I created my own fictitious insurance company. I had an old typewriter and I would create invoices for the policies that I sold to my sister and her dolls. I created a checkbook and would pay bills and issue refunds to my customers.” CARLTON MELTON – Senior accountant McNorton, Ishee & Jones, MobileMelton is a Mobile native who attended Auburn Montgomery and graduated with his undergraduate and MBA degrees. His best moment as a CPA was making a presentation to accounting students at Spring Hill College. If he weren’t a CPA he’d be “a janitor at a college even though I’d be smarter than most of the people there. Sometimes, while I’m working, I’ll see an unfinished equation on the blackboard and just solve it. And my best friend would be Ben Affleck.” Leadership Academy Class III

WHAT SCARES YOU: “Spiders, Sasquatch, unicorns and Very Large Sea Creatures.”

Meet the Young CPA Cabineton the project of reconstructing a house. It’s the first time I had participated in community service with construction. I really enjoyed it and definitely plan on doing more service activities like this!

7. Have you worked while going to school? If so, how have those experiences contributed to your accounting career?

When I was attending Calhoun, I worked at Lowe’s as an associate in the paint and home décor departments. I was also a cashier when needed. I also worked as a receptionist in a pediatric office. I was very appreciative to have flexible jobs allowing me to work, go to school and still have enough time for homework. From both of these jobs I learned the importance of customer/patient satisfaction, multi-tasking, and healthy relationships with co-workers. I also learned how to manage my time better and my money. All of these things have contributed to my future accounting career by showing me to be a better employee and able to help my future clients in the best manner possible.

8. Do you have brothers and sisters? Tell us a little about them.

I’m the oldest of three and the only girl. My brothers are Jacob and Joshua Warren. Jacob recently began his college education at Calhoun Community College and plans to major in biology and teach and coach high school students. He enjoys working out, playing games, and spending time with family. My younger brother, Joshua, is a junior at New Hope High School. He plays varsity football and basketball. He enjoys spending time with his friends, doing anything that involves being outdoors, and spending time with family. He plans to join the military after graduating in 2017 in hopes of becoming a Navy SEAL.

9. You’re about to become a military wife. What are your plans to finish the steps leading to the CPA?

Because my husband will be commissioned in the Air Force in the spring, I will be moving quite often in the next several years. I’ve decided to take my first year after graduation off to study for the GRE and the CPA exam and to look for on-line master’s programs in accounting or business administration.

10. And after that, what does your professional life look like?

After my recent internship with governmental accounting at the Retirement Systems of Alabama (RSA), I’ve realized that working in a large-scale environment is not for me. I think I’d rather work for a small-town CPA firm. Having a family is really important to me and being in a flexible situation will enable me to find balance between my work and home lives.

FALL INTERN PROFILE Continued from page 13


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State Taxation Committee Thomas C. Zoebelein, II, Chair Martin R. Abroms Jane B. Bochnak John C. Boohaker Frank D. Brown Roger F. Bryant G. Allen Cave, Jr. Vivian Chateau Edward F. Cutter William A. Dow Wallace Dunn, II Michael A. Frost Larry B. Gilley Whitcomb H. Guerin Henry H. Haisten, III David L. Harwood Renee B. Hubbard William B. Hughes, Jr. Stanley C. Huner Robert M. Hunt, Jr. Clifton T. Jackson Leon M. Kelley

Ethics Committee Gary S. Anglin, Chair Catherine M. Bostrom Daryl M. Feige Gregory B. Guin S. Jon Heath Donnie Holder William A. Julian J. Kevin Smith Timothy B. Smith Richard A. Turpen

YOU are the key to the ASCPA’s success!

Audit Committee Charles H. Adams, Chair J. Brian Barksdale Steven M. Baranco Lucinda S. Bollinger Phyllis S. Ingram Doug L. Smith

Federal Taxation Committee Joe B. Abbott, Jr. G. Allen Cave, Jr. Jake R. Culotta, Jr. Carol E. Gilliland Laura Q. Hanks Renee B. Hubbard Kendall T. Jordan, Jr. Gerard J. Kassouf Diana S. Knight George W. Lorimer, II Frank M. Messina Jim L. Richardson Dr. Kaye F. Sheridan Timothy B. Smith Glen H. Strickland

Education Committee Dena S. Mitchell, Chair Dr. Mark Lawrence Garrett Allen Dr. Lowell Broom Dr. Jim Byrd Tiffany DeRoy Brittany Harris Dr. Jan Heier Charlie Hickman Dr. Tom Noland Gerald Pentecost, Jr.

Gregory P. Logan Michael E. Mason Justin L. Mitchell Jeremy D. Mosteller Cathy A. Mozingo Darren L. Neuschwander Karen R. Poist Lyvonnia S. Poppell Lamar Reeves James L. Richardson Elizabeth D. Sasser Dr. Kaye F. Sheridan Jeffrey M. Sims, Jr. Kimberly B. Smith Kimberly D. Tarnakow Rachel M. Taylor William T. Thistle II Peggy R. Wall James A. Watson



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Have a wonderful Thanksgiving holiday.The Alabama Society office will be closed on November 26 and 27.

It's the simple things which speak loudest.

CLASSIFIEDS

NOVEMBER/DECEMBER 2015

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PAIDPermit No. 131

Montgomery, AL

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1041 Longfield CourtP.O. Box 242987

Montgomery, AL 36124

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Practice Management and Student Issue