CPA Now Blog Archive

With the death of Secretary of State Colin Powell on Oct. 18, 2021, America lost one of our generation's great leaders. As we embark on 2022, we should refresh (or strive to learn) some of the leadership fundamentals Powell shared in his 2012 book, "It Worked for Me: In Life and Leadership."

Special purpose acquisition companies (SPACs) are not new in the world of investing, but there has been a recent surge in their popularity. CPAs may encounter SPACs or receive questions about them from clients, so it is important to understand the basics of these investment vehicles.

The difficulties in hiring and retaining staff in the CPA profession began prior to COVID-19, but it has been more acute during the pandemic and through the recovery. One possible solution for firms may be outsourcing some of their accounting services. However, CPAs need to be vigilant regarding the inherent risk and regulatory requirements when outsourcing work to others.

For those who work in professional services, often it is the people who are seen that get the choicest assignments. And those who get the choicest assignments ultimately tend to develop the most sophisticated skills. If always working from home or adhering to a unique schedule that doesn't align with others, it may be difficult to ensure “face time” with practice leaders and to benefit from the organic opportunities that arise when two people find themselves in a hallway or by the coffee machine.

Despite endless media reports highlighting that cyberthreats are a real risk to corporate operations, many have been stagnant in their pursuit of cybersecurity. But maybe a workable security framework has arrived in the form of the Cybersecurity Maturity Model Certification.

The best time to plan for a crisis is before it happens. Just taking the first steps in the planning process can go a long way toward facilitating the continuation of your practice, making sure clients are taken care of, and preserving the value of the practice.

Total charitable donations for the nonprofit sector increased in 2020 compared with 2019, and they are on track to increase again in 2021 compared with 2020. The growth was largely due to increases in individual donations as opposed to corporate giving. This emphasizes the importance of connecting with individual donors, and one way to track progress in connecting with a donor base is through data analytics.

This past year saw many developments in blockchain and among cryptoassets. It can be difficult for practitioners to determine where they should focus as they prepare for 2022. There are, however, several core themes that practitioners should concentrate on as cryptoassets become more integrated into mainstream financial applications and clients begin to raise an ever-increasing number of questions on the topic.

Recently, the Federal Reserve has indicated that inflation doesn’t appear as “transitory” as they thought, so interest rates are probably on the rise. This will cause bonds to lose value because a rise in rates causes bonds to sell at a discount. The choice facing the financial planner is to advise enduring the pain now and sell at a discount or spreading the pain over the remaining life of the bond via coupon payments lower than market.

The key ingredient to achieving a healthy work-life balance in accounting is time. But when so many hours are consumed by tedious, manual tasks, there is a shortage of time, thus disrupting the harmony between work and personal life. One way to address this imbalance is by automating some processes and cutting down on manual procedures. You'll give time back to staff and enhance the work-life balance.

Companies gather data to interpret the actions of groups of people and then use that interpretation to develop additional strategies. Because there is a human element to how and why data is collected, certain underlying assumptions arising from unconscious bias can quickly derail these efforts. Context, correlation, and credence can be tripping points when trying to overcome flaws and misinterpretation in data analysis.

Firms that take the time to formalize a process of gathering client feedback, evaluating consistencies, and making purposeful choices are better able to empower their team members to provide meaningful client experiences. And this focus on client service can be the differentiator among CPA firms and the linchpin to client loyalty.

Malcolm Polley, president and chief investment officer for Stewart Capital Advisors LLC, takes a look at the economic outlook for 2022, and shares his thoughts on manufacturing, supply chain difficulties, and hiring troubles.

The past two years have been challenging. CPAs have struggled to identify and understand the rules related to new federal programs, which often have limited or unclear guidance. The IRS has been virtually AWOL when it comes to getting answers. It should not surprise anyone that the uncertainty and lack of response can create or increase malpractice exposure for CPA firms.

The CPA Exam is evolving to reflect the skills CPAs will need in a technology-driven marketplace. Candidates still will have to demonstrate core skills in accounting, audit, and tax, but technology will have a greater emphasis and be embedded into each of the exams. Candidates also will have to choose one additional discipline exam in which to demonstrate more in-depth knowledge.

If a company is considering going public through a special purpose acquisition company, a traditional initial public offering, or a direct listing, having effective internal controls is a necessary step for a successful transition. This blog details some important considerations for achieving an appropriate internal control environment for this leap.

The impact of COVID-19 on the insurance industry will be a featured topic at PICPA's 2021 Insurance Conference on Dec. 2-3. Three presenters -- Jeffrey Glass, Edward Tobin, and Chris J. Rice, all of McConkey Insurance & Benefits -- answer some of our questions to give us a preview of what attendees will learn at the conference.

The Philadelphia Department of Revenue recently announced its new tax-filing and payment website, the Philadelphia Tax Center. This blog shares that announcement and highlights some of the site's features.

There is a broad mystique when it comes to the venture capital space. It’s where capital and disruptive ideas come together to bring new companies to the mainstream. Yet, this intrigue and excitement can also mask a number of risks not readily apparent.

CPAs will often help small businesses in drafting financial statement disclosures when those businesses do not have the staff familiar with disclosure requirements. This blog offers a few tips for preparing disclosures that not only meet professional standards, but also are helpful to the client.