Partners’ Network Newsletter May 2014

Partners’ Network Newsletter May 2014

Letter From The Editor

WithumSmith+Brown, PC
One Spring Street
New Brunswick, NJ 08901
P. 732.828.1614
F. 732.828.5156

Contact:
Ed Mendlowitz
[email protected]

Heather Suddoth
[email protected]

To our colleagues,

Hope you had a great tax season. We are now gearing up for the rest of the year and one way is to put together a fantastic all day CPE program for you with eight separate presentations by people who are experts in each area. These are also colleagues you can call if you have questions about those topics.

Our expanded Partners’ Network will have the same full day of programs in New Jersey and New York. You can attend the one that is more convenient for you. We’ve incorporated some programs that have been requested on the evaluation sheets from our previous conferences. Keep providing your feedback.

I will be talking on how to assist a client in calculating labor costs and pricing services. This is a process that can be applied to every type of business, including your own. Eric Wilson and Melissa Crowe will give a look at how they advise emerging growth companies, which has become a hot area for us, and hopefully for many of our colleagues too. Al LaRosa, a trust and estate specialist will review how to handle an initial trust return for a client. Peter Weitsen will give the latest scoop on the inner workings of the IRS and how it affects the active practitioner. Peggy Gallagher will present up-to-the-minute insights into accounting and auditing changes. Tony Tuths spends time with our wealthiest clients and I’ve asked him to share some of his most sophisticated tax planning tips. Last summer I heard Andrew Roth and William Miller speak on qualified retirement plans and while I am pretty well versed in this area I was treated to new insights in some overlooked pitfalls and ways to maximize our clients’ deductions. They graciously agreed to speak for the Partners’ Network and I believe you will benefit greatly from their presentation. Frank Boutillette will discuss preparing for peer review and why it should be a continuous quality control process.

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

Be sure to sign up today for this valuable CPE program on June 19 in New Jersey or June 24 in New York. Peter, Frank and I look forward to seeing you.

Cordially,

Edward Mendlowitz, CPA
President

Heather Suddoth
Development Manager

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.

Full Day Seminar | Two Locations | 8 CPE Credits

THURSDAY, JUNE 19, 2014
8:00am-4:30pm
333 Davidson Avenue
Somerset, NJ 08893

TUESDAY, JUNE 24, 2014
8:00am-4:30pm
1411 Broadway
New York, NY 10018

Cost

$215 for Partner’s Network members. $295 for non-members. $100 to purchase conference materials (if you cannot attend).

QUESTIONS?

New Jersey – Ashton Abby | [email protected] | 732.842.3113
New York – Jenny Kowalski | [email protected] |212.751.9100

WithumSmith+Brown,PC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org. For information regarding refund, complaint, and program cancellation policies, please contact Ashton Abby at [email protected].

Program Level: Intermediate Prerequisites: Must be a CPA in own practice or a Partner/Manager in a firm
Advanced Preparation: None Delivery Method: Group-Live

WORK IS ALWAYS BETTER WHEN THINGS ARE IN ORDER AND YOU ARE IN CONTROL.

Interview With Peter Weitsen CPA, Partner

How long have you been with WithumSmith+Brown?
Mendlowitz Weitsen, LLP, CPAs merged into the Firm on January 1, 2005. So I’ve been with them for nearly 10 years.

When were you introduced to WS+B, and how did you eventually decide to make an upward merger decision?
It’s a long story full of lots of twists and turns. I first met Ed Mendlowitz in 1978 when I was working as an auditor for the IRS and was assigned to look into one of his clients. I then ran into Ed a few years down the road while playing softball and it just so happened that our wives met each other during the same time at a Mahjong game. From there our friendship began to grow. While I was working at the IRS, I knew I didn’t want to work there all of my life. So I decided to sit for the CPA exam, took some courses I needed and passed the exam. I ended up meeting a future partner at WS+B, Ron Bleich, through another audit with the IRS. I told him of my interest in getting into public accounting. I then went through an interview process with both Ed’s and Ron’s firms – was given two identical offers – but chose Ron’s firm as it was closer to home. A few years later, both Ed and I were looking for an opportunity to grow on our own. We then formed Mendlowitz Weitsen, LLP on July 1, 1988. As the years went on, we grew, and eventually hired Frank, who we made a partner. We then crossed paths with another future partner at WS+B, Ruben Cardona, at the Largest Networking Party held annually in New Brunswick. He mentioned to us that Withum was a great firm, and he had recently merged in. Ron Bleich too had merged into WS+B and spoke highly of the company as well. Through the Middlesex Country Regional Chamber of Commerce, I got to know Bill [Hagaman] as he and I both held leadership roles within the Chamber. Shortly thereafter, we had lunch, discussed how our firms would work together, and five months later we were officially part of WS+B.

What was the transition like from being your own boss to now working for a larger firm? Were there differences in the way you performed engagements, in the culture, management, etc.?
We couldn’t have found a better fit than here. We never felt unwanted or uncomfortable from the moment we got here. There were a lot of freedoms with having your own firm, but we merged to gain resources that we didn’t have that allowed us to now be part of something bigger and go after prospects that we would have never had the skill or expertise to pursue. The transition was a gain – we didn’t lose anything. We also benefitted greatly from a technology standpoint. We were introduced to fantastic technology. Withum has always been on the cutting edge of implementing new technology. Along with the merger came the learning curve on how WS+B operated as opposed to Mendlowitz Weitsen, LLP. We were flexible; you have to be to make it work. We also shared the same vision as Withum – we believed in homegrown talent. Bring in young staff with little or no experience, right out of school and train them to do their job and do it well. We were very successful through this method. We had the big firm mentality in the size of a small firm.

The Partners’ Network started with Mendlowitz Weitsen in the mid ’90s. What was the thought process for starting this and how did you grow it to what it is today
While Ed and I were sitting in the airport on our way home from a two day conference in Disney, we came up with the idea. We always held a pre-tax meeting for our staff to fill them in on what to look for and be aware of in the upcoming year. Well, sole practitioners and small firms got wind of this and wanted to start attending our internal sessions. After a few years, we had a pretty large group. We decided to really make this into something – we’d provide education and serve as a resource to anyone who wants to come for a small fee. When we merged with Withum, the program came too.

What has been the most gratifying moment in your career?
I have a few… Passing the CPA exam – it just makes you feel good. You did something that you hoped you could do. You’re now recognized and looked at differently when you gain those three letters. Getting my first job at a public accounting firm and then becoming a tax manager. Becoming a partner with Ed, which was a tremendous opportunity. Becoming a partner at WS+B, a larger and recognized quality firm. Now, becoming partner emeritus – you have a lot of options, stop working, keep working…whatever you want to do.

WS+B has a mandatory retirement age of 65. Upon reaching this milestone, you become a partner emeritus. How have you transitioned from being a fulltime tax partners to a “retired” partner?
Well, it’s nice not to work on Fridays. You figure out what is good for you – if you want to work more or less, either is ok with the Firm. I’m still learning how to make the transition. I’ve passed off work to other partners, even before I officially retired, to help make the transition a little easier. However it’s a slow process. A lot of the transition took place at the end of my first year as a partner emeritus. It’s hard for me to completely retire at this point though. I enjoy helping people. I feel good when I’ve helped my clients and enjoy riding the roller coaster with them, through good times and in bad.

How do you fill your time since you’ve become emeritus?
To be honest, I’ve only knocked off one day a week. But I do come in a little later and find that traffic doesn’t really exist when I get to the office around 10 am, which is nice. I’m now looking to play golf once a week since the weather is nice. Now that my schedule is more flexible, I also exercise before I come into work. I used to be the first one into the office, but now I’m ok with coming in later. I’m at a point in my life where I need to focus on my health and my life, and I now have time to do that. But I now have possibilities I never had before – you still work a little, make a little money and have time to enjoy your life.

Do you ever think that you will fully retire?
Yes, of course. I can’t tell you when or what day that will be, but I think everyone should. Right now, this is my second longest job, next to Mendlowitz Weitsen, but this could be my longest. You never know.

How did you juggle the task of being a father, a husband and working in public accounting?
I coached a lot for my kids when they were of age – baseball, soccer, basketball. When at Mendlowitz Weitsen, it was nice to be my own boss so I could leave during tax season to coach. I also never brought my work home. I did my work in the office so I could enjoy my family and time at home. Being in this profession doesn’t mean you can’t have time with family. You have time and you should make time.

Who Says Telecommuting is Better?

Good morning everyone,

About a year ago the Chairman of the ABC Charity Organization, who is a longtime client of the firm, called Andy Vitale to propose on the audit, tax returns and pension audit of the charity. The Charity is an elite organization serving a valuable function in Central NJ. Initially, the board had decided to give us the pension audit, and after seeing the work of our team, led by Glenn Bellomy and Dave Dacey, we were recently successful in getting the tax and audit work for the Charity.

When our audit field team, consisting of Lisa Galinsky, Christina Lazaro and Lauren Hanrahan, was performing the pension audit, they went to lunch with the CFO and were asked numerous questions about our audit and tax approach. The team was successful in explaining our capabilities, and they were able to convince the client we were the firm for all of their accounting and tax needs.

Our firm has built up a very nice niche of these types of charitable organizations in the region and our experience in this niche was extremely important in obtaining the ABC Charity Organization as a client.

Good work to the entire team and thanks for taking advantage of the opening.

Top 10 Free Apps Every CPA Must Have

[author-style]Vivek Agarwal CISA, CPA, CFE, Manager[/author-style]

	EVERNOTE is extremely easy to use to take notes and save ideas. You can sync your notes across all computers and devices that you use. Your notes are also searchable and can be organized by notebooks and tags. You can also clip web pages and save them for later reading. I find this particularly useful when I am researching a new regulation and want all information in a single place. Voice notes can also be recorded and stored. Free users are allowed 60 MB of data upload each month and unlimited storage. Additional data upload requires purchase of subscription.
	LINKEDIN is the world’s largest professional network. The app makes it easier to stay up-to-date with people in your network, connect with new people, edit your profile, search for companies and groups, view your inbox, and accept people invitations.
	CAMCARD FREE lets you quickly and accurately scan business cards into your phone. There is no more need for keeping paper business cards. It lets you share contacts easily with others via SMS, email and QR code. You can also easily search, sort and group your cards across your various devices (via CamCard website).This free version is Ad-supported.
	GENIUS SCAN turns your phone into a pocket scanner. This is particularly useful when you are out of office and have to scan and send documents to someone. You can quickly scan documents on the go and email the scans as JPEG or PDF from your phone. It also allows you to scan multiple pages into a single PDF. Genius Scan can also be used to archive travel receipts.
	DROPBOX provides an easy way to access your documents and files. When you save a file in Dropbox, the file automatically syncs and is available across all your devices such as laptop, phone or iPad. You can access your files even when you are offline. You can also share whole folders with others – there is no longer the need to send attachments via email. Users are provided 2GB space for free.
	GOOGLE AUTHENTICATOR increases the security of your Google accounts and other supported applications such as Dropbox, Evernote, Facebook, SalesForce.com, Microsoft account by providing a 2-step verification process. The app generates a six digit one-time password users must provide in addition to their username and password each time they log into their account. Once configured, you can get verification codes without the need of a network or cellular connection.
	WAZE a community based traffic and navigation app. What is unique about Waze is that you can share real-time traffic and road information such as road closures, road hazards, traffic, accidents, etc. The app also automatically re-routes you if conditions on the road change. Another cool feature is that you can send someone whom you are visiting, a link to a live web map showing your real time drive and Expected Time of Arrival. A recent upgrade allows it to sync with your calendar and thus locations are automatically added for one tap navigation when it’s time to go.
	FLIPBOARD is one of the best news apps out there. All you have to do is select topics that interest you and Flipboard will automatically provide related news and articles from popular publications and websites. Start flipping!
	ADOBE READER can be used to easily view and interact with PDF documents. The app allows you to fill out fillable PDF forms, save and sign forms, search text, add comments or text, highlight/ strikethrough/ underline content and mark up content with the freehand drawing tool. You can also create folders to organize your PDFs.
	APPS GONE FREE provides a short handpicked list of paid apps that became free each day. You may find a nice app every now and then.

Frank’s Review Notes

New Exposure Draft For Compilations

[author-style]Frank Boutillette CPA/ABV/CGMA, Partner[/author-style]

This exposure draft deals with three questions CPAs have struggled with for years:

• Am I associated with a set of financial statements?
• Have I prepared the financial statements by just pushing a button?
• Have I compiled a set of financial statements?

Many years ago, before personal computers, it was easy to determine when an accountant prepared a financial statement. He/she took the client’s trial balance and turned it into a financial statement using paper and pen, and some typing. With the advent of computers and more so with software accounting packages, it isn’t so clear whether by pushing a button the accountant has “prepared” a financial statement. Here is a brief summary of this exposure draft.

ASSOCIATION WITH FINANCIAL STATEMENTS

An accountant may allow his/her name to be used in a report, document or written communication containing financial statements on which the accountant has not issued an audit, review or compilation report. The accountant should read the financial statements to ensure there are no obvious errors and also that the statements are marked that no CPA provides any assurance on the statements. They could, if they choose, issue a disclaimer on the financial statements.

PREPARATION OF FINANCIAL STATEMENTS

The preparation of financial statements is a non-attest service and the accountant is not required to verify the accuracy or completeness of the information provided by management or to otherwise gather evidence to express an opinion or conclusion on the statements. Some things to note here is that the accountant should include on each page of the financial statement an adequate statement indicating that no CPA provides assurance on the financial statements.

COMPILATION ENGAGEMENTS

When an accountant is required to report on a compilation of historical financial statements, there are specific requirements that need to be followed. These requirements have not changed but have been clarified to include that a written engagement letter must be obtained.

Additionally, a new compilation report will be introduced. The report will be one paragraph and very explicit as to the responsibilities of the accountant. The purpose is to make a clear distinction between the review and audit reports.

If this exposure draft is ratified as written, the “plain paper” statement introduced years ago under SSARS No 8, will become a thing of the past. I believe this exposure draft, if ratified, will make it easier for CPAs to determine when they need to issue a report and what the requirements are when they do not issue a report.

Exposure drafts are circulated to get a sense of how practitioners feel about proposals, and they are not effective until issued in final form.

[featured-content title=”Stallone’s Quotes”]

[author-style]Michael G. Stallone CPA, Partner[/author-style]

The winner is always part of the answer.
The loser is always part of the problem.

The winner always has a program.
The loser always has an excuse.

The winner sees an answer for every problem.
The loser sees a problem for every answers.

The winner sees a green near every sand trap.
The loser sees two or three sand traps near a green.

The winner says “let me do it for you.”
The loser says “that’s not my job.”

The winner says “it may be difficult, but it’s possible.”
The loser says “it may be possible, but it’s too difficult.”[/featured-content]

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 Ashton with your credit card information, or put a check and business card in the mail. It’s as easy as that. So give Ashton a call today at 732.842.3113, or send an e-mail, [email protected]. We look forward to hearing from you soon.

Get Ed’s opinions that are provided to clients on issues that concern them. Blog posted twice a week. Visit www.partners-network.com. Log in and sign up for automatic delivery of new postings. After you sign up, you will need to respond to an email to activate the delivery.

Get Frank’s opinions on issues affecting the financial services arena. Visit www.withumonwallstreet.com. Log in and sign up for automatic delivery of new postings. After you sign up, you will need to respond to an email to activate the delivery.

Top 5 Questions From Partners’ Network Members

Each month Ed compiles the top 5 questions he received in the past month with his responses. These are posted on the NJSCPA and NYSSCPA Open Forums and also by CPA Trendlines.

If you would like to receive them directly send Ed your e-mail address to be added to his private list. His address is [email protected] and you are also welcome to contact him with your questions, also by e-mail, or call him at 732 964-9329.

Succession Planning

Succession Planning will help your company continue to succeed -even after you’re gone.

Begin planning for the extended life of your company. Call us today to discuss which options are best for your company’s future.

Ed Mendlowitz, CPA/ABV/CFF, Partner
732.828.1614

Peer and Quality Reviews

We are registered with the Public Company Accounting Oversight Board (PCAOB) and are available to perform your peer review.

Call us for more information.

Frank R. Boutillette, CPA/ABV, Partner
212.751.9100

The Partners’ Network Newsletter is published by WithumSmith+Brown, PC, Certified Public Accountants and Consultants. The information contained in this publication is for informational purposes and should not be acted upon without professional advice.