CPA Now Blog Archive

Is it possible for you to be a "good boss" and at the same time underperform, or even fail, as a leader in your organization? Very much so. Successful leaders must lead well in all directions: leading up to your boss, across with your colleagues, and in front of your team.

The state of the economy is top-of-mind for businesses and individuals, so it is paramount that CPAs remain focused on the many different measures and forecasts so they can best serve their clients, companies, or organizations. To that end, the PICPA is providing updates during this turbulent summer so you are prepared to offer sound advice.

Seven days after the 2022-2023 fiscal year began on July 1, Gov. Tom Wolf and state lawmakers did finally adopt a $42.8 billion state General Fund appropriations bill. This year there was big news on the tax front: there will be a staged reduction in the Pennsylvania corporate net income (CNI) tax rate -- the state’s first CNI tax rate reduction in more than two decades.

Commitment to diversity, equity, and inclusion (DEI) should be integral to every organization’s culture because studies show that embracing DEI is good for business. A 2019 report by McKinsey & Company, for example, found that companies with executive teams in the top quartile for gender and ethnic diversity were 25% more likely to have above-average profitability.

The role of the CFO has undeniably grown. The position has moved more toward the stewardship of capital and taking on the responsibility of strategic business partner. CFO work is shifting from generating reports to generating and optimizing value for the entire organization.

Thirty percent of midcareer professionals (between 30 and 45 years old) have quit their jobs over the past year. A third of those left without another job lined up. Employee turnover is costly, disruptive, and robs CPA firms of a pipeline of future leaders. Why, then, do so many firms focus on recruiting new employees instead of keeping the top talent they have?

When it comes to accounting firm mergers and acquisitions (M&A), two factors in 2022 are making a hardy impact: staffing challenges and the acceleration of technology. For those in today’s market, here are five vital priorities to be more successful with your M&A endeavor.

An effective asset protection plan must be implemented before any foreseeable claims because reactionary transfers (made to avoid a present or future creditor) are reversible. Be careful to not get entangled in a potentially fraudulent transfer.

To ensure the PICPA remains a valuable resource for CPAs across Pennsylvania, it is essential for the organization to provide future-conscious information and opportunities for 21st century CPAs and for CPAs to embrace the changes in technology and business practices. To that end, Dr. Daniel Susskind, fellow in economics at Oxford University, was the keynote speaker at PICPA's 125th Annual Meeting where he shared his view on the future of the profession.

A data breach at a CPA firm will likely require remediation and a forensic investigation; it may also require costly client notification. The road does not end there, however. Perhaps the most concerning results of a data breach will be the civil penalties and litigation.

Members of the Pennsylvania CPA Journal Editorial Board met in May for their annual meeting to plan the featured content for the 2022-2023 issues of the Pennsylvania CPA Journal. The group came into the meeting with their eyes on several critical issues facing CPAs, particularly in the areas of technical accounting, practice management, and the future of the profession.

The Federal Reserve raised interest rates by the largest increase since 1994. Find out from Patrick Harker, president and CEO of the Federal Reserve Bank of Philadelphia, what is behind the Fed's thinking on the hike.

Have you ever found it challenging to hold on to your authentic self, especially when it is out of sync with others? As a relative introvert in a business world often dominated by extroverts, Puneet Sapra has found that being true to himself is the key to his success.

The “broken rung” is a gap in the advancement cycle that stifles the promotion of women to senior leadership. For every 100 men promoted to a first-time manager position, only 72 women are. This should be getting much more press than the well-known and often used phrase “shatter the glass ceiling.” The “broken rung” is a bigger deal.

Changes to tax law -- particularly the increase in the federal estate tax exemption and the enactment of the portability election -- have made certain irrevocable trusts, such as residual trusts, less prevalent because many taxpayers who may have benefited no longer are subject to the estate tax. In fact, a residual trust that was established years ago could actually end up increasing taxes today.

Accounting firms – including the Big Four of Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers – announced in March that they are leaving the Russian market following Russia’s invasion of Ukraine. The process of removing Russian affiliates from the Big Four’s networks, however, is not a simple task, and is fraught with complications.

PICPA local events are back! As life continues to return to normal, our members are eager to get back together in person. If you’re ready, the PICPA will keep you busy all summer long with happy hours, baseball games, and more.

For CPA firms, a data breach is especially pernicious because firms will not only have to deal with the direct costs resulting from a breach, but also the indirect costs such regulatory compliance and reputational damage. It is crucial that all firms understand what all their obligations are in the immediate aftermath of such a breach.

There’s no denying things are changing fast. Technology has been quietly replacing busywork at public accounting firms for years, and the "disruptive" future accounting industry is now here, in all its automated, analytical glory. So, is your firm future-ready?

No industry is immune from a lack of labor, even those among the professional class such as CPAs. Firms are now looking outside their local areas – and even in other states – to find qualified candidates. As firms consider factors to support this growing remote workforce, there are a few items to keep in mind.