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Why Your Small Business Needs a CPA Every business, no matter how small, needs a financial and tax advisor. But your business needs a Certified Public Accountant (CPA), not just an accountant. "Accountant" is a general term, referring to financial and tax professionals who follow specific rules and regulations, including Generally Accepted Accounting Principles (GAAP), which are rules and standards set forth by the Financial Accounting Standards Board (FASB). CPA's are accou...ntants who have passed a licensing examination in a state. So, you could say that all CPA's are accountants, but not all accountants are CPA's. Many small businesses use the services of an accountant, and there are many competent accountants serving small companies. For a very small business, an accountant may fill some of the accounting needs, but there are specific circumstances in which using the services of a CPA has advantages. Even if you have a very small business or a single-person business, you probably need the services of a CPA, for several reasons: A CPA is licensed by a state, and must keep current with tax laws in order to maintain a license in that state. Accountants aren't licensed. The CPA exam is a rigorous process over several days, including many facets of financial and tax expertise. After they are licensed, CPA's also must comply with continuing education requirements in order to maintain their licenses; accountants don't have this requirement. You can learn more about the standards that CPA's must follow by checking out the CPA professional organization, the American Institute of CPA's (AICPA). While not all CPA's specialize in small business taxes, almost all CPA's are more familiar with tax laws than are accountants. thebalance.com See more

SOC for Cybersecurity This 2017 edition of AICPA Codification of Statement on Standards for Attestation Engagementincludes the newly clarified Statements on Standards for Attestation Engagements in SSAE No. 18, Attestation Standards: Clarification and Recodification. Redrafted in accordance with the clarity drafting conventions and differentiated from the extant standards by using the identifier AT-C, the attestation standards are easier to read, understand, and apply by establishing objectives and definitions in each AT-C section,... aicpa.org

Fake Financial News is a Real Threat to Majority of Americans NEW YORK (April 27, 2017) Fake news, deliberately false and misleading articles, has been all over the news lately. A new survey reveals that fake financial news has the potential to be a real serious problem, and it’s impacting Americans’ ability to make retirement, investment and healthcare decisions. These often completely made up stories are presented to consumers in many forms, such as sponsored content or f...ake websites meant to mirror the look and feel of credible news sites. Even worse, a majority of Americans say they feel that fake news is going to become even more prevalent in the future. The risk of making an impulsive financial decision in reaction to a headline or article that may be designed to mislead has the potential to cause serious problems. Acting hastily does not allow the proper time to think a decision through and weigh the long and short-term financial implications. However, more than 3-in-4 (77 percent) Americans feel it's important to act fast to make financial decisions when breaking financial news becomes available, with 40 percent saying it's very important to act quickly. That’s according to a new telephone survey of 1,018 adults conducted in March 2017 for the American Institute of CPAs (AICPA) by Harris Poll in support of National Financial Capability Month. Having accurate, reliable financial information is the basis for deliberate and rational decision making, said Greg Anton, CPA, CGMA, and chair of the AICPA’s National CPA Financial Literacy Commission. With few exceptions, making snap financial decisions is usually not a good idea. There is a fine line between reacting and overreacting, and Americans should proceed cautiously until they’re able to parse the facts. There is widespread awareness about the issue of fake financial news. Almost 3-in-5 Americans (58 percent) believe that fake news is a serious threat to their financial decision making, with more than half of those (33 percent) saying the threat is very serious. Those sentiments are consistent for both genders, among household incomes and across generations. However, fake news is not just an abstract threat it’s having a serious impact on Americans’ ability to navigate their financial lives. More than 3-in-5 Americans (63 percent) say that the spread of fake news has made it more difficult to make critical financial decisions. Specifically, they’re having a harder time with healthcare decisions (44 percent), investing in the stock market (40 percent), retiring (36 percent) and buying or selling a house (35 percent). aicpa.org See more

How to get the help you need from IT Having a computer freeze up or battling a stubborn projector before a major presentation is no one's idea of time well-spent on the job. In addition to stress and frustration, technology disruptions can mean a loss of hours worked (and, at some accounting firms, hours billed). That's why it's important to make sure that things are running smoothly and, if they're not, to get things up to speed as quickly as possible. Clients expect almost ...immediate feedback, said Jim Bourke, CPA/CITP/CFF, CGMA, a partner and head of firm technology at New Jersey-based regional accounting firm WithumSmith+Brown. "If technology is not what it should be," he said, "how can you provide an instantaneous response?" To meet clients' or customers' expectations, you need to have a good working relationship with the IT professionals who keep your organization plugged in. Here are some tips on how to do that. How to ask for help The best route, experts say, is to follow the process that's in place to ask for help. Some large firms have a ticketing system in place while other IT departments prefer that associates send an email or call a help line. Dropping by in person can work as well, but many IT departments prefer having a documented system in place so that they can prioritize different requests, said Peter Henley, CPA/CITP, chief information officer for the Bellevue, Wash.-based firm Clark Nuber. When you're filling out a request for help, be specific and offer as many details as possible about what programs may be acting up, and any error messages you get or pressing deadlines that you have. If you don't get any response to your request, escalate to an IT manager, your manager, or someone in an authoritative position, Henley said. Employees working out of the office, such as auditors, should always let their IT colleagues know they're having problems remotely, he said. "If you're at the client's [office] and your computer is broken, you're done," Henley said, whereas if you're at your workplace, "you can probably find something to do." In his firm, those having problems out of the office almost always get classified as a high priority. Also, realize that your IT colleagues are likely dealing with a number of requests and may not be able to drop everything immediately to help you, said Marc Staut of Boomer Consulting, a technology consulting firm for the accounting profession. "Every single person thinks whatever they need should be priority number one," said Staut. "It can be a challenge to make sure everyone's getting that top level of service." Few things are more frustrating for IT professionals than facing a colleague in crisis mode, and having him or her mention the problem existed for the last few weeks, Staut said. journalofaccountancy.com See more

Keeping Millennial accountants engaged The accounting profession, as is stated repeatedly and nearly constantly, is currently in the midst of a dramatic transformation and realignment. Cloud computing, the increasing use of analytics in business decision making, and technology becoming more and more integrated into every aspect of client and business life are just a handful of the issues facing the profession. On top of these structural changes, the demographics of the profes...Continue reading

Case Studies: Online accounting A decade ago, firms had very few options in cloud-based accounting software, and solutions that addressed the specific needs of their smaller, niche clients were more or less non-existent. Today, there are a range of software options for firms that serve individuals, large corporations, nonprofits and everything in between. Below, three firms and one small business discuss their online accounting software of choice. Product: Xero Firm: Acui...Continue reading

5 Ways to Develop Your Professional Skills Through Digital Learning Disruption in the marketplace, changes to regulations, tax reform, technology advances and globalization make developing professional competencies more important than ever for CPAs. According to a recent Harvard Business Review article, continuous and persistent learning isn’t merely a decision. It must become a habit. And as such, it requires careful cultivation. Ongoing skill development is critical for m...aintaining your professional relevance. You need to dedicate time to continue your competency development. But where do you start, and how do you fit it in to your schedule? Digital learning activities provide opportunities to incorporate learning into your daily life and offer flexibility that a traditional classroom can’t. Here are five digital learning activities to try: Leveraging social media to gain insights from thought leaders and peers around the globe is an easy way to incorporate digital learning into your development plan. Obtain valuable resource tips, find articles and discover infographics on LinkedIn. Exchange professional opinions in discussion forums pertaining to emerging industry trends and get peer input on your unique business challenges through your social channels. These guides from the AICPA can help you get started with best practices. Podcasts provide you with an opportunity for hands-free learning. Listen to podcasts from industry leaders, authors, and keynote speakers while exercising or commuting. You can stimulate your mind while improving your body physically and utilize your commute time for your professional development. A new and exciting trend in the evolution of online learning is the integration of 3D avatars and augmented reality. blog.aicpa.org See more

7 Benefits of Cybersecurity Penetration Testing Security breaches are prevalent in today’s business environment and reports indicate that these threats are not going away any time soon. As a result, organizations need to take steps to safeguard their confidential data and other sensitive information. Smaller-sized organizations like small businesses and not-for-profit entities are particularly vulnerable. A recent study by Symantec found that 43 percent of phishing campaigns ...affected small businesses in 2016, a significant uptick compared to 2011 when just 18 percent of attacks targeted small businesses. Even organizations with limited resources have affordable and effective options for protecting valuable data. I recommend penetration testing, a type of cybersecurity vulnerability assessment, to my clients working in the not-for-profit sector. Many of my not-for-profit clients feel compelled to conduct cybersecurity penetration testing when they consider how accepting online donations may create vulnerabilities for not only for themselves but also for their donors. Potential donors may feel more comfortable donating online once they hear that the organization has safeguards in place to protect their information. Penetration testing is performed by an outside, third party and can be tailored to the needs, or concerns of the organizations. Regardless of an organization’s size and area of impact, penetration testing can be a valuable tool. blog.aicpa.org See more

Working with competitors can aid revenue recognition effort Lara Long, CPA, never would have imagined five years ago that she soon would be in a room with some of her company's biggest competitors and broader industry peers, talking candidly and transparently about accounting issues. But pursuit of a smooth implementation of the new revenue recognition standard has caused financial statement preparers to go to unprecedented lengths. Developed jointly by FASB and the Internati...Continue reading

Women in the Profession The Women’s Initiatives Executive Committee of the AICPA contributes to the progress of women in the profession by conducting research to examine the advancement of women to ownership and leadership roles, as well as... aicpa.org

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