Partners' Network

Partners’ Network Newsletter May 2015

Partners’ Network Newsletter May 2015

journal-gradLetter from the Editor


Ed Mendlowitz

To our colleagues,
Tax season is behind us, and I hope it was a good and profitable period for you. We are now gearing up for the rest of the year; and to help you, we’ve put together a fantastic all day program with eight separate presentations.

On the following page is the program for the Partners’ Network June CPE Program. It will be the same in both the New Jersey and New York locations, and we have assembled a wide array of speakers – all specialists in their topics. Some of the topics have been requested in your evaluations, so thank you for the ideas. We work hard to provide up-to-the-minute information you can immediately apply to your practice and hope you take advantage of these efforts.

The CPE programs also introduce you to colleagues you can call if you have questions on what they speak about. You can also call me, Heather or Danielle with your questions and we will find the right person who can assist you among our 80 partners and over 420 staff.

Brian Lovett (in NY) and Peter Weitsen (in NJ) will be speaking on ways a foreigner could invest in U.S. real estate and businesses. Randy Paulikens will be covering a topic we get a lot of calls about – helping a client value their business when contemplating a sale. This is done differently than the traditional valuation methods. Peter will be giving his extremely popular IRS Update. Peggy Gallagher and Frank Boutillette will be splitting the A&A update. Topics that will be covered include a peer review update, SSARS 21, verification letters, agreed upon procedures, ASU 2014-18, status of revenue, leasing, not-for-profit projects and anything new that comes up. Larry Horn and Rich Sapinski, two lawyer friends, will give us the latest on IRS enforcement of unreported foreign income. I will be presenting twice – the first and last programs. The Buffett speech has been given a few times and is really a tremendous program, and I throw in some financial planning advice. The going beyond the checklists contains tips on how to add value to your clients outside of the regular services you perform. You will like it.

A free benefit of the Partners’ Network is the monthly Q&A that over 1200 people receive monthly. You must request it since it is a bulk email, and if you are not receiving it, simply send an email to [email protected] requesting it. You should also be reading the www.partners-network.com blog which addresses issues our clients have. This is free also, just go there, sign up and confirm it when requested.

The full program and schedule is on the next page. The handout will be posted online at a secure link to only those who are registered and also provided on a USB drive – it will be valuable reference source you can refer to in the future.

Be sure to sign up today for this valuable CPE program on June 23 in NY or Jun 25 in NJ. 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 Newsletter (May 2015)_Page_2

journal-gradInterview with Brian Lovett, CPA, JD, Partner

Brian Lovett, CPA, JD

HOW LONG HAVE YOU BEEN IN THE ACCOUNTING PROFESSION?

I got my first accounting internship in the spring of 1998, so I just completed my 18th busy season in the accounting profession. It’s hard for me to believe that it’s been 18 years.

WHY DID YOU DECIDE TO BE AN ACCOUNTANT?

When I went to college, I knew I wanted to major in something business related. I talked to a few people about it, and their advice was to start with accounting. They felt like it would provide a good base for another business discipline, and it was easier to switch out of accounting and into another business major. I enjoyed the classes at first and then, when I took my first tax class, I knew I was in the right place.

YOU WERE WITH A BIG 4 FIRM BEFORE YOU CAME TO WS+B. WHAT MADE YOU LEAVE AND COME TO A SMALLER FIRM, AND HOW DID YOU CHOOSE WS+B?

The real reason I left PwC was simple geography. I started working in their Philadelphia office and then moved up to the New York office. Living in Lawrenceville, NJ, the commute in and out of NYC was sometimes 3 1/2 hours each day (which was on top of the crazy hours I was putting in at the office). Once my first son arrived, I decided to find a regional firm closer to home.

After considering the options closer to home, I looked at WS+B and another regional firm that has recently merged upstream. I immediately felt comfortable with everyone I met from WS+B. In addition, I was friends with another WS+B employee who had, and still has, great things to say about the Firm and the culture, so I decided to go with WS+B. Obviously, I think I made the right choice.

WAS THERE ANY TRANSITION ISSUES “DOWNSIZING”?

There were really none. I spent the first 5+ years of my career at a small firm in Princeton, NJ. I was very well aware of what to expect from a smaller firm. My biggest concerns were (1) being able to find work with enough complexity to keep me interested; and (2) the availability of the resources and technologies I had become accustomed to with PwC. Both of these issues did not end up being issues at all. My day is full of complex issues and challenges that keep me challenged beyond my wildest dreams. The unique size of WS+B allows me to work on complex and challenging issues while at the same time being a trusted advisor to our clients. On the technology side, I think WS+B has some of the best technology resources among our peers. In both software and hardware, WS+B makes sure our professionals have the cutting edge resources necessary to provide excellent client service.

YOU STARTED IN THE NATIONAL TAX SERVICES GROUP IN PRINCETON AND NOW HEAD UP THE TAX SERVICES GROUP IN THE NEW BRUNSWICK OFFICE. HOW DID THIS COME ABOUT?

I had some great leaders and role models to in the Princeton office. A couple years back, I was approached about the possibility of relocating to the New Brunswick office to provide leadership and oversight to the tax department in that office. Always one to look for new and different challenges, I willingly jumped at the opportunity.

HEADING UP TAX SERVICES PUTS YOU IN A LEADERSHIP AND MANAGEMENT POSITION IN ADDITION TO WORKING WITH CLIENTS AND PERFORMING RESEARCH AND REVIEW. WHAT INSIGHT CAN YOU OFFER ON THIS?

One thing that I’m learning myself is that you really need to focus on the staff and personnel development. I firmly believe that a group or a firm will be as successful as their ability to develop and retain quality staff people. I can’t accomplish all of my daily responsibilities on my own, so I need to make sure I have the right people to be able to delegate to – people I can trust to get the job done right, on time and on budget.

HOW MANY CHILDREN DO YOU HAVE? DO YOU MAKE TIME TO GO TO THEIR GAMES AND COACH THEM?

I have four sons, Jacob (8), Elijah (5), Benjamin (2) and Zachary (2) who are twins. I’m fortunate that only two of them are active in sports so far, so making it to games has been pretty easy. As they all become more active in sports and other activities, I plan to be as involved as possible and coach them.

WS+B HAS GROWN SUBSTANTIALLY SINCE YOU CAME HERE. WHAT OBSERVATIONS CAN YOU OFFER?

My biggest take-away from all the growth I’ve witnessed while I’ve been with WS+B is the importance of culture. Culture is a word that is used everywhere, but I feel like it very rarely means what it means to WS+B. Whether through organic growth or the acquisitions of other firms, it is important that everyone shares the same philosophy towards work and life. Finding employees and merger partners that share the same culture has allowed the firm to grow quickly, complete mergers (relatively) seamlessly and keep employees very happy in the meantime.

IN ADDITION TO YOUR FULL PLATE, ARE YOU ABLE TO GET INVOLVED WITH ANY BOARDS?

I currently sit on two boards. I am on the Board of Directors and the Finance Committee for Big Brothers Big Sisters of Mercer County. In addition, I am a Trustee and the Treasurer for the Lawrence Township Education Foundation. No matter how full my plate, I feel it is important to give back to the community. Both of these boards have missions that I identify with, and I’m honored to be able to give some time back to these organizations to assist in their missions.

YOU HAD A PRETTY BAD ANKLE BREAK PLAYING IN OUR INTER-OFFICE SOFTBALL TOURNAMENT. HAVE YOU FULLY RECOVERED, AND WILL YOU BE PLAYING ANYMORE?

I’m not fully recovered yet. There was a good amount of damage done and recovery from two surgical procedures. However, six months after surgery, I’m feeling pretty good and optimistic about my prospects for full recovery. As far as softball is concerned, I’m not ready to say never, but I think it will be quite some time before I step onto the field again. There are just too many other things I like to do to risk another injury.

WHAT OCCUPIES YOUR FREE TIME WHEN YOU GET IT?

All things considered, I don’t have too much free time. I try to get to CrossFit every morning at 5am since that is the one time during the day that I can generally guarantee that nothing will interfere with my ability to get my workout in. In addition to exercise, I enjoy reading and golf.

MOST REWARDING MOMENT(S) OF YOUR CAREER THUS FAR?

I’d have to say that the highlight of my career so far was making partner at WS+B in July 2014. That was the culmination of years of effort and sacrifice. It was an honor to be selected by the partner group and was the realization of a goal I set for myself a long time ago.

journal-gradWithum Rules —(or Why they’re my favorite Big firm)

AT THIS POINT, EVERYBODY HAS TO HAVE HEARD OF WITHUMSMITH+BROWN.

You may have seen one of their crazy flash mob videos with their team lip syncing and dancing burning up on social media. You may have read about them in Accounting Today where they are ranked No. 29 on the infamous at Top 100 list.

But why are they my favorite Big Firm?

They have partners with genuine, unique personalities who always seem willing to help smaller firms (like mine) and the profession as whole. The personal brands of their partners are actually likeable – and as a result draw attention to their bigger, corporate-like firm.

The tone comes from the top. Bill Hagaman, the firm’s CEO, can often be seen in their videos sporting shades and getting right into the fun. He’s smart – he knows by demonstrating his firm is hip, he’ll attract like talent. And with a firm of talent, fun, and skill, you can pretty much do anything.

I personally know three of WS+B’s partners and each one is different but yet share an underlying personality and helpfulness that make them so likeable – giving me an impression of their entire firm that I can’t help but love.

Culture is so hard to define. But when you are exposed to multiple partners and each of them is different, yet so cool, I think you’ve done the culture and branding of a professional service firm right!

Ed Mendlowitz Example A: Ed Mendlowitz (a.k.a. Baseball Card Ed). Yes, his business card is an actual baseball card. I have it on my bulletin board above my desk and it’s even been known to attend our internal team meeting when I refer to something Ed has shared on practice management. We don’t agree on all of the same philosophies, but Ed has years of experience and is always willing to share what he’s learned. If you are not on his email list get on it, his newsletter is always worth a read.
Nitti-Tony Example B: Toni Nitti (Code Head Extraordinaire). His way of explaining difficult tax concepts is hysterical and technical. But even more so, he is willing to share it with the profession. You can catch his blog on Forbes. When working in a smaller firm you don’t always have access to the technical, yet I know if I reach out to him he will help with that practical code application.
Bourke-Jim
Example C:
Jim Bourke (IT Guru). Is there an AICPA committee or council related to the profession he is not a part of? I mean, for real. He has made the IT CPA mainstream. His efforts to move the profession forward through the use of technology are amazingly awesome and practical. The best place to catch Jim is at the AICPA Practitioner’s Symposium and Tech + Conference in June. He always has a crowd in his sessions.

There are lots of big firms out there. Yet unlike Withum, individual brands don’t shine through the firm. They’re lacking in personality. A CPA firm will always have partners, yet Withum is the only “big firm” in my eyes with individuals who add to the brand as a whole – and as result have a much larger reach.

Ed, Tony, and Jim all use social media to amplify them across the country. They do different things, but yet it all comes back to the source – the corporate culture of the firm. If I were a big firm and looking for acquisitions this might be a good strategy to connect with smaller firms or for smaller firm referrals.

What can I say? Jim, Ed, and Tony are my “Boyz” and that’s why it’s Withum all the way.

Jody Padar, CPA, MST, is the chief executive officer and principal at New Vision CPA Group and the author of The Radical CPA (www.theradicalcpa.com). Reprinted with permission from the Accounting Tomorrow blog.

journal-gradPeter’s Tax Issues

Peter Weitsen

MY EXPERIENCE THIS TAX SEASON WAS THAT, FOR THE MOST PART, ALL THE WHEELS WERE TURNING LIKE A FINELY TUNED MACHINE. OF COURSE, AS ALWAYS, I HAD TO KICK INTO A HIGHER GEAR AT THE END, WHICH SOMEHOW I ALWAYS MANAGE TO DO.

Ed has always professed that we should approach the tax return process the same no matter whether we are at the beginning, the middle or the end of tax season, and I agree. In order to keep my systems in tune (as with other times of the year), it was my routine to ride my 15 year old Trek hybrid outside for about a half-hour before work, weather permitting. Otherwise, I would ride a stationary bike inside. You see, I have been riding a 2 wheeler since I was 5 years old and in my mind continuing to do this keeps the “boy” in me.

As with any machinery, a bike chain needs lubrication; and this caused me a small problem. I’ve had this can of 3 In One Oil™ forever, and I just barely squeezed out the last drop. I probably bought it at Rickel’s (which went out of business in 1997). I now needed to replace the oil, and I did not even know if it still existed. As it turns out, 3 In One Oil™ has been around for a very long time – it was originally formulated in 1894. Its name, given by the inventor George W. Cole of New Jersey, derives from the product’s triple ability to “clean, lubricate and protect,” originally for use on bicycles. Although now owned by the WD-40 company, it can be found at Home Depot and other hardware and home improvement stores. Other lubricants, some which are even “dry,” now exist, but I found that there is a huge fan base in manufacturing and other trades for this old school product.

Well, that now brings me to my point. I think in many ways we should still be applying many of the old school principals and approach to our work, and that cleaning, lubricating and protecting of our work product still goes.

journal-gradFrank’s Review Notes: SSARS 21 Clarification and Recodification

Frank BoutilletteIN OCTOBER 2014, THE AICPA ACCOUNTING AND REVIEW SERVICES COMMITTEE (ARSC) ISSUED A NEW PRONOUNCEMENT TO CLARIFY AND REVISE THE STANDARDS FOR REVIEWS, COMPILATIONS AND ENGAGEMENTS TO PREPARE FINANCIAL STATEMENTS. IN ADDITION TO CLARIFYING THE STANDARDS, SSARS 21 MAKES SIGNIFICANT REVISIONS THAT AFFECT STANDARDS FOR ACCOUNTANTS IN PUBLIC PRACTICE WHO PREPARE FINANCIAL STATEMENTS.

The preparation of financial statements in Section 70 of SSARS 21, applies when an accountant in public practice is engaged to prepare financial statements but is not engaged to perform an audit, review or compilation. It does not apply to accountants outside of public practice. An engagement to prepare financial statements is considered a non-attest service, whereas, audits, reviews and compilations are considered attest services.

A report is not required even when the financial statements are expected to be used by or presented to a third party, like a bank.

The preparer of the financial statements should include a statement on each page of the financial statement that no assurance is being provided. In addition, the accountant is required to obtain an engagement signed by both the accountant and the client’s management. When engaged to prepare a financial statement, the accountant does not need to consider whether he/she is independent, just as in all other nonattest services such as bookkeeping/accounting services.

OTHER CHANGES NOTED IN SSARS 21 ARE AS FOLLOWS:

Compilations reports

  • streamlined to differentiate from assurance (review and audit reports consisting of one paragraph with no headings)

Reviews reports

  • requires the use of headings for each paragraph
  • accountant is required to name city and state of the issuing office
      can be met if the accountant’s letterhead has the issuing office’s address
  • Requirement to obtain a signed engagement letter for all SSARS engagements

This standard is effective for reviews, compilations and engagements to prepare financial statements of periods ending on or after December 15, 2015. Earlier implementation is permitted.

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 Litsa or Danielle with your credit card information, or put a check and business card in the mail. It’s as easy as that. Contact Litsa 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.

Download PN Member Form

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