Partners' Network

Partners’ Network Newsletter January 2016

Partners’ Network Newsletter January 2016

journal-gradLetter from the Editor


Edward MendlowitzTo our colleagues,
The tax season kick-off is our Pre Tax Season CPE Program on February 1st and 4th which is free for Partners’ Network members and one guest. I hope you can come and take advantage of it. We will have five of our tax people present on areas they specialize in. We work hard to provide up to the minute information you can immediately apply to your practice and hope you benefit from these efforts.

The same Pre Tax Season CPE Program will be presented in NJ and NY. The CPE programs also introduce you to colleagues you can call if you have questions on their areas of expertise. You can also call me, Heather or Danielle with your questions and we will direct you to the right person among our 80 partners and over 500 staff that could assist you. We draw on all our resources to assist you.

I will be speaking on the latest in tax practice management techniques that will help you service clients better, work more effectively and earn greater revenues. Joe Picone will update you on the most current procedures and software we use including statistics of our smart scanner usage and tips to get maximum benefits from it. John Daly will provide an update on changes in NJ and NY taxes, and Brian Lovett will do the same for the federal changes. Peter will give you the scoop on the latest workings of the IRS and will include info on identity theft and the inspector general’s reports.

A benefit of the CPE program is the networking with us and fellow colleagues. Come early and meet and greet. We will also have a short break.

Another free benefit of the Partners’ Network is the monthly Q&A that over 2000 people receive monthly. You must request it since it is a bulk email, and if you are not receiving it simply send me ([email protected]) an email requesting it. You should also be reading the www.partners-network.com blog which addresses issues our clients have. This is free also, just sign up and confirm it when requested.

The full Pre Tax Season program and schedule is on the next page. The handout will be posted on line and provided on a stick drive and will be valuable reference source you can refer to in the future.

Be sure to sign up today for this valuable CPE program on Feb 1 in New Jersey or Feb 4 in New York. We all look forward to seeing you.

Cordially,

Ed-Mendlowitz-signature
Edward Mendlowitz
President

Heather Campisi
Administrator, New Jersey

Danielle Atkinson
Administrator, New York

P.S. We perform many services for CPAs including peer and quality reviews, business valuations and forensic services, and audits that you may not be in a position to perform. Please keep us in mind when you are in need of these services. We can also lend a hand to controllers who need assistance on special projects including tax basis conversions to GAAP, tax return preparation and state tax compliance issues.

CPE Event Info


PN schedule 16

journal-gradInterview with Sarah Cirelli

sarah cirelli linkedin

How does a Zumba® instructor, coffee addict, social media guru land at a regional public accounting firm?

I discovered Withum when I was looking for an internship and still in school. A mutual friend of mine was the current Marketing Director. At the time, as a kid in college going to school for marketing, working for an accounting firm was the last possible place I thought I would end up. I always pictured myself working for Nike, or clothing or something way sexier. Fast-forward over eight years and I’m still here. I truly believe that you can inject so much of yourself and so much passion into something that it becomes exactly what you never knew you were looking for. I encourage everyone reading to look past your own expectations and dig a little deeper into the unexpected (career, job, industry, PEOPLE…) you never know what you’ll find.

How was your role transformed during your time at Withum?

Over 8 years ago, I first started at Withum as a marketing intern. Without one day of a break, a few months later, I came on full-time as an events coordinator. It became necessary a year or two later to make myself a tad more valuable when the economy took a dive. Holding a somewhat expensive non-billable position in a very billable profession didn’t sit well with me. It was then, that I noticed an opportunity to incorporate social media into our marketing strategy. Fortunately, then (and still now) Withum had a very innovative management who was quite hands-on with marketing. I will never forget the day I sat across the board room table from Bill Hagaman, CEO, and told him that I thought it would be a good idea for 400+ of his billable professionals to start “playing online.” Bill didn’t quite get it… but, he did get that he needed to get it. Sometimes that’s the hardest part and it was certainly unique and ahead of the rest of the industry. It’s been an exciting evolving adventure since then. The industry has been changing, marketing trends are changing and our firm and department are growing!

As a nationally recognized speaker, what jump started your speaking career?

Last October, I had the honor of attending the first-ever Forbes Under 30 Summit as an invited attendee. In a session with world famous DJ, Afrojack, one sentiment stood out. Afrojack is responsible for leading crowds of thousands of people with his music. He was asked one question. “How do you get an audience to follow you?” His answer was simple. He said, “The easiest way to get ANYONE to follow you is to prove your passion to them.” I believe that if you are knowledgeable and passionate about a subject, you owe the world to talk about it and teach about it. The world needs more of that. At Withum, we’ve had an exciting adventure with our videos and social media projects. If any of our success can spark someone else’s momentum and creativity, I’m happy to share the story. I have found that people are drawn to the energy.

How do you qualify the value in being visible in the social media market since many accountants want to see a concrete ROI?

Fortunately, we have a more concrete handle on analytics today than we have in the past. My favorite answer to the request, “Show me the ROI of social media” used to be… “Show me the ROI of your mother.” You can’t. Without her, you’d be lost. She helps you do what you’re already doing more efficiently. Although this response still works, we can now use analytic tools built into social media platforms and things like Google Analytics to tell what’s working and what’s not.

How important is the use of video on social platforms?

It has to be done. Media is a must. Let’s face it, we’re still the kids that want to read the books with the pictures. It’s how we learn. It’s how we understand. Facebook has evolved, Twitter has evolved, LinkedIn has evolved and Pinterest exists purely to support media. Our mobile devices (which are outselling computers 2:1) are doubling in size to support our media-watching habits. After 72 hours, a typical person will remember 10% of something they read, 65% of something they see and 95% of something they engage with in a video. If you have something to be or something to say or something to sell… video will help you do it.

What motivates you in life and in your career?

I believe in living a certain type of life. The same goes for face-to-face interactions AND online. For colleagues, friends, family AND strangers. A bad attitude can literally block everything happy and successful from happening to you. I believe in surrounding yourself with people who celebrate you rather than tolerate you. It affects the way you view the world and how much you want to put into it. Too often, I see people with bad energy being the single reason they can’t figure out how to succeed. I believe that self-care is not selfish, it’s necessary. “Refilling your own cup” is vital to being able to pour out into your career, your family and all aspects of your life. You cannot do anyone any good if you’re not truly happy first. Also – it’s so important to be true to yourself. Embrace what makes you unique. It’s a brave thing to do and so incredibly attractive. Don’t be afraid to share, to give back without expecting anything and to go the extra mile for someone who can’t necessarily repay you. Put in the WORK… with a good heart… and you and the people around you will be happy and successful. I’ve said on occasion that “perspective” is my mentor. Every person I’ve come across and every experience I’ve ever had have been my mentors. Some of the biggest professional and personal lessons I’ve learned have come from experiences in perspective. It all circles back to attitude. Things are going to happen TO YOU and FOR YOU and BECAUSE OF YOU. It all comes down to what you choose to take from any given person or situation. Not every situation or relationship is supposed to be forever. Every experience is a lesson to be had… and lessons (with perspective) are most definitely always positive in a way. Sometimes to show you what’s right, what is wrong, to show you who you can be and to teach you what you need to be happy. To ultimately, teach you how to be the best possible YOU… professionally or personally. The ability to identify a positive perspective, to keep going and to genuinely learn and improve from everything you can is the best possible teacher I have ever asked for.

What one piece of advice can you give to a small firm or sole practitioner who is thinking about exploring social media?

You have to remember that social media marketing is still marketing. It’s still about starting from the very beginning. It’s a very strategic series of events. Understand what your goal is. Understand what you’re selling and why it is unique. Take the time to understand where your target market is hanging out online. Focus your energy on that place. Start small. And, THEN, decide how to make yourself first, different, great, unique… but, beneficial and valuable in some way. It’s up to you to make them care. I don’t care what anyone else tells you – You don’t need to be doing everything.

journal-gradJudge Kenesaw Mountain Landis’ General Ledger


judge kenesaw

Judge Kenesaw Mountain Landis became Baseball Commissioner in 1920 following the Black Sox Scandal when it was alleged that the 1919 World Series was fixed. He served until his death in 1944.

During Landis’ tenure he kept a tight financial control over baseball’s finances.

He also maintained the general ledger along with his assistant Leslie M. O’Connor and an unidentified third person. Many of the entries were made by Landis. It is believed the ledger was kept at Landis’ home as a precaution against fire, theft and as a job security measure. The general ledger is a typical one of tha time period and consists of over 150 pages and contains entries of transactions usual for any business such as rent, telephone and travel; but some are specific for the Commissioner’s office and provides a glimpse into the activities of Major League Baseball. For instance an account page shows the income and expenses of the 1934 All Star game. Receipts were $50,795.82 and expenses were $6,466.21 yielding a profit of $44,329.61. The expenses included a $22.38 payment to Spalding. Other pages are for Fines and Forfeitures and indicate a 1927 $100 fine to Tyrus Cobb and a 1942 $100 fine to Leo Durocher; and the Commissioner’s salary pages show $50,000 for 1925.

This ledger merges a significant part of baseball history with accounting history and the almost completely disappeared manually maintained general; ledgers. The ledger was acquired by Ed Mendlowitz in 1988 and is a significant part of his accounting history collection. This ledger merges a significant part of baseball history with accounting history and the almost completely disappeared manually maintained general;

journal-gradBill Hagaman’s Monday Morning Messages


Bill_Hagaman300Bill has sent a Monday Morning email since he became our managing partner. The topics vary but are always pertinent. Shown below is one which was one of a series of discussions of a book by Jack & Suzy Welch. In today’s MP Message, we will be covering the third topic from Jack & Suzy Welch’s book, The Real-Life MBA: Your No-BS Guide to Winning the Game, Building aTeam, and Growing Your Career, which is: What to Make of Marketing. In the book, the Welch’s really nail it when covering the WHY in strategic marketing. “In recent years, business-to-business marketing (or B2B) has undergone just as much change as business-to-consumer (B2C) marketing, for much the same reasons. More technology, savvier global buyers and suppliers. Increased competitiveness. Heightened transparency.” Indeed, our clients and prospects are continually doing their homework and have higher expectations with regards to client service. The book shares two guiding principles which aptly apply to out profession:

1) Companies need to do everything in their power to keep the B2B relationship very, very personal. Like our own personal relationships, professional relationships have to be built on trust with both sides feeling like they’re a win-win situation. You have to really know them, and they have to really know you. As it pertains to our clients, it’s worth sharing these tips again, which absolutely apply to that hot prospect you are pursuing as well:

  • Respond to client calls or emails as quickly as possible. A timely response makes them feel they are top priority to you, and everyone likes to feel that way.
  • Take the time to actually speak with clients at least once a month, if not more often. Pick up the phone and make a call. Or arrange a time to stop by their offices just to see how things are.
  • Take clients out to breakfast or lunch (I call this a “meeting without an agenda”). Aside from getting to know our clients better, personally use this time to discuss what is keeping them up at night, and see if you can help find a solution. We have a deep well of talent of expertise at our firm, as well as a vast network of resources of those services we do not directly provide (insurance, investments, payroll, etc.). We can likely help solve any problematic issue they have. Be a problem solver for our clients and elevate yourself to a trusted professional.
  • Make it a point to let our clients know you value their business, and are genuinely interested in them. Check out their website on a regular basis to see what they are up to. Share an article you just read that pertains to their industry. Let them know you truly care.
  • Don’t be afraid to get to know our clients on a personal level. You may be pleasantly surprised to learn how much you have in common. Ask about their family and other interests. Consider sending a note on their birthday or a gift when a new baby or grandbaby has arrived. Be a friend in business.

Jack and Suzy bookEverything you do in B2B marketing today has to be driven by a careful analysis of industry. What that means to us is to stay on top of the industry trends and issues that are most relevant to our clients’ businesses. Roughly five years ago, we embraced a niche-focused marketing model, as has most of the profession. It encourages us to be more strategic in our marketing efforts, helping us gain a competitive edge within industry verticals by demonstrating our expertise and putting our strongest people – our Niche Practice and Team Leaders – out to the forefront of their respective industries. We also demonstrate our expertise through our powerful website and content marketing strategy, our enhanced proposals, and our presence within industry associations as exhibitors at tradeshows, presenters at conferences and authors in their publications.

With business-to-business marketing, there’s a building of relationships in order to a) minimize clients going out to bid and b) ensure new business for the future. Buttress this with strategic thinking about capabilities, expertise and our competition….and you have a winning marketing mix.

I hope you enjoyed this installment of the thought leadership coming from The Real Life MBA. Remember, if you’d like to read this book yourself, feel free to visit my bookshelf on shelfari.com and order it. You can enter the expense under Publications/Subscriptions, with the words “Bill’s Virtual Library Book” in the description section.

Have a great week!
Bill

Some of Bill’s messages are enters on his Blogs which you could get by signing up at www.CEOthinks.com.

journal-gradPeter’s Inversions


Peter Weitsen

Of late there has been considerable interest in the news about Tax Inversions. In particular Pfizer announced a merger with Allergan which would result in Pfizer ending up as an Ireland corporation thereby reducing its overall tax rate substantially.

The top U.S. corporate tax rate is 35 percent compared to Ireland’s 12.5 percent tax rate Worldwide Pfizer’s current tax rate is 27.5 percent, which it now seeks to reduce even further by virtue of the inversion. In effect earnings abroad would not be subject to U.S. taxation until repatriated.

Understandably this has caused much concern in Congress and at the IRS which have indicated a commitment to curtail this loophole.
The term inversion is quite interesting on its own. Webster’s defines inversion as “a change in the position, order or relationship of things so they are opposite of what they had been.” We all have heard about temperature inversions, yield curve inversions and maybe even literary inversions. In My Guitar Gently Weeps George Harrison sang, “I don’t know how you were Inverted.” I’ve always wondered about its meaning.

In our business one could think of some other inversions such as the zero percent tax rate for capital gains, the meaning of unqualified opinions, and even the IRS constantly being audited by the Treasury Inspector General. Having tax returns prepared by partners or managers rather than by staff level accountants may also be viewed as an inversion.

Accountants’ putting returns on extension because they are too busy to finish them by April 15 and then having a second and even more stressful tax season in September and October surely looks like an inversion. As we approach Tax Season I am sure we can think of some other inversions. Recognizing causes of inversions might result in more effective scheduling and review of activities.

journal-gradThe Year in Review (From an A&A Perspective)


Frank Boutillette
I want to take a look back on the changes that occurred during 2015 and what the new year may bring.

CPE IN NEW JERSEY

The New Jersey State Board of Accountancy, voted to eliminate the maximum number of self-study credits a CPA can take. This is effective immediately. Thus a CPA can take 116 self-study credits during the triennial period. NJ has a requirement that the 4 credits for law and ethics must be a live session.

INDEPENDENCE

The AICPA has been reviewing accountant independence with respect to non-attest services. While there have not been any significant changes in the rules, there has been an increased focus on whether the client has an individual within its organization who has the skills, knowledge and experience to take responsibility for the non-attest services the independent CPA is providing. Non-attest services include but are not limited to tax preparation, bookkeeping services and writing the financial statements. The accountant must identify an individual at the client who can oversee these services and document their understanding of this individual’s skills, knowledge and experience. This documentation should be detailed enough to allow someone reviewing the documentation to reach the same conclusion.

DEPARTMENT OF LABOR

In May, the Department of Labor released a report “Assessing the Quality of Employee Benefit Plan Audits”. This report described the Department’s review of audits performed by CPA firms on employee retirement plans. The result of the study was damaging to the profession.

They found that CPA firms that audit only 1 or 2 employee plans had a 76 percent failure rate. Firms auditing 3 to 24 plans had a failure rate of approximately 68 percent. They also found that some CPA firms did not disclose that they performed audits of employee retirement plans to their peer reviewer, thus these engagements were not included in their peer review.

The result was the DOL making 11 recommendations which includes focusing on firms that perform less than 5 employee plan audits, communicating with state boards of accountancy (licensing boards) regarding the results of the study and the need to ensure that plan audits comply with professional standards. The latter frightens me as a regulatory body (the DOL) is looking for CPA firms who do not conform to lose their CPA license. The moral here is, think twice before you decide to take on an audit of an employee retirement plan for your client.

2016

I think we will see more regulations coming in 2016 in the audit area. I will leave you with this one thought. We, the CPA, is the only professional authorized to issue an opinion on a financial statement that can and is relied upon by third parties to make decisions, yet many try to be the lowest fee firm to offer their John Hancock. Thus many have begun to cut corners to be competitive and lost sight of how important our work is and the reliance the public has on our seal of approval.

I hope everyone had a wonderful holiday season and a very Happy New Year!

journal-gradHow to Join the Partners’ Network?

Why should my firm join The Partners’ Network?

  • To broaden your firm’s services and expertise
  • To help you build your business for growth and profitability
  • To obtain answers to challenging audit and tax matters with a phone call
  • To get ideas and tips on how to better manage your practice

What does The Partners’ Network offer a firm like mine?

Again, many answers:

  • Free Power Breakfast covering timely topics.
  • Discounts to the annual CPE Conference in June.
  • Invitation to the Pre-Tax Season CPE program.
  • Answers to your questions on tax, accounting, auditing, or practice management at no charge. Just pick up the phone and call, or send one of us an e-mail.
  • Contacts with peer CPA practitioners, and opportunities for exchanging ideas, resources, and information with your colleagues.

How do I join?

Membership is $175 per year ($500 for firms of 100+). Phone or e-mail Heather or Danielle with your credit card information, or put a check and business card in the mail. It’s as easy as that. Contact Heather to join our New Jersey Chapter at 732.828.1614 or [email protected] and reach out to Danielle to join our New York Chapter at 212.751.9100 or [email protected]. We look forward to hearing from you soon.

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