The WashingtonCPA Fall 2013 by Washington Society of CPAs

washington

CPA Fall 2013

Volume 56, Number 2

Mergers & Acquisitions Transaction Planning: Tax Issues Sellers Need to Know Acquisitions and the Affordable Care Act The CFO’s Role in Evaluating Acquisitions

Form 990 Strategies for Review – Have the Organization Shine Are Subchapter K Partnership Taxation Questions Keeping You Up at Night? The Top 5 Reasons Your Job Description Does Include Marketing Management

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WashingtonCPA Fall 2013

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CONTENTS

wa s h i n g t o n

CPA www.wscpa.org • memberservices@wscpa.org Tel (425) 644-4800 • Toll free in WA (800) 272-8273 Fax (425) 562-8853 902 140th Ave NE Bellevue, WA 98005-3480

BOARD OF DIRECTORS Glenn G. Wisegarver Chair Heather L. Fitzpatrick Vice Chair David J. Miniken Treasurer William A. Simer Secretary Mary D. Marino Immediate Past Chair Richard E. Jones President & CEO

Laurie J. Anderson Marinilka B. Kimbro Thomas G. Donaghy Lucy L. Liu Kirsten S. Duke Karissa A. Marker Dean A. Granholm Peter R. E. Miller Robert L. Grannum Sharon K. Philpott Waylon P. Jones Andrew L. Read CHAPTER BOARD CHAIRS Richard C. Meyer, Jr. Bellevue Area Alex R. King Central Molly Vander Woude Central — North Seattle Jack W. Curnow Northwest Kathryn A. Dixon Olympia — Peninsula — Pierce County Amanda J. Goodman Sammamish Valley Dora K. Leung Sammamish Valley Jeffrey A. May Seattle Rachel T. Sites Snohomish County Dani L. Espinda South King County John Vogel South Sound Industry Matthew E. Lee Southwest Lucas M. Zarecor Spokane — Wenatchee Kyle S. Meissner Yakima

Jeanette Kebede

Editor

The WashingtonCPA is published by the Washington Society of Certified Public Accountants for its members. Views and opinions appearing in this publication are not necessarily endorsed by the WSCPA. The products and services advertised in The Washington CPA have not been reviewed or endorsed by the Washington Society of Certified Public Accountants, its board of directors or staff. The WashingtonCPA (USPS 009754) is published four times annually by the Washington Society of Certified Public Accountants, 902 140th Avenue NE, Bellevue, WA 98005-3480. $12 of members’ annual dues goes toward a subscription to The WashingtonCPA. Periodicals postage paid at Bellevue, Washington and additional mailing offices.

Mergers & Acquisitions Transaction Planning: Tax Issues Sellers Need to Know 8 Acquisitions and the Affordable Care Act 11 The CFO’s Role in Evaluating Acquisitions 6

17 The Academy Awards ... and Advocacy 19 Form 990 Strategies for Review – Have the Organization Shine 23 Are Subchapter K Partnership Taxation Questions Keeping You Up at Night? 26 The Top 5 Reasons Your Job Description Does Include Marketing Management

Departments

Cover photo: ©iStock by Getty Images/Yuri

Leadership Lens

29 Events

POSTMASTER: Send address changes to The WashingtonCPA, c/o WSCPA, 902 140th Avenue NE, Bellevue, WA 98005-3480.

News Briefs

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CPE Digest

17 Advocacy

32 Conferences

Registration Form

27 Foundation

Classified Ads

Member Profile

Financial Literacy Photo Album

WashingtonCPA Fall 2013

Leadership lens

Our Peerless Volunteers By Rich Jones, CPA, CGMA, President & CEO

group of WSCPA members who are active in the AICPA Peer Review program recently attended the 2013 Peer Review Conference in Providence, RI, along with about 350 people from around the U.S. Our delegation included Marc Bateman, Kai Bottomley, Shannon Knipp, Robert Loe, Jeff Mock, Julie Phipps (administrator of the Peer Review Program for the WSCPA), Abby Sanders, and me. The three day conference is held annually to discuss the AICPA’s Peer Review Program and to discuss issues, challenges, and best practices for the program and those who make it work. Attendees include staff from state societies who administer the program; CPAs who perform the peer reviews, serve as Technical Reviewers, and volunteer their time to serve on state society Peer Review Committees and Report Acceptance Bodies (RABs); members of the national Peer Review Board; and a number of administrative and technical staff from the AICPA. This very impressive group of CPAs and others works diligently to monitor the quality of CPA firms across the country, with the goal of helping these firms perform their auditing and attestation services in accordance with the profession’s high standards. Here is a quick primer about the Peer Review Program. •

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Any member of the AICPA who performs audit and attest services is required to do so through a firm that is enrolled in the Peer Review Program. The Washington State Board of Accountancy now has a similar requirement, whether or not the CPA is a member of the AICPA or the WSCPA. Under this program, affected firms are reviewed every three years by a peer reviewer who is a licensed CPA who meets the specific requirements of

WashingtonCPA Fall 2013

Peer Review volunteers are protecting the reputation and public perception of the foundation of our profession, the attest function. We all owe these volunteers a great debt of gratitude. Thank you to all WSCPA members who are a part of this program.

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the Peer Review Program. One such requirement is that the peer reviewer’s firm must have received a Pass result on its most recent peer review. The reviewed firm can select any qualified peer reviewer to do its review. Over 30,000 firms are enrolled in the program nationally. Approximately 16,000 of these firms will have an Engagement Review; the other 14,000 firms will have a System Review. Generally, if the highest level of service performed by the firm during the three year review period is a compilation or review, then the firm may qualify for an Engagement Review. The objective of an Engagement Review is to evaluate whether engagements submitted for review are performed and reported on in conformity with applicable professional standards in all material respects. An Engagement Review consists of reading the financial statements or information submitted by the reviewed firm and the accountant’s report

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thereon, together with certain background information and representations and the applicable documentation required by professional standards. Firms that provide a higher level of service, i.e. engagements performed under the Statement on Auditing Standards (audits), the Government Auditing Standards (Yellow Book), examinations under the Statement on Standards for Attestation Engagement (SSAEs), or audits of non-SEC issuers performed pursuant to the standard of the PCAOB must have a System Review. A System Review includes determining whether a firm’s system of quality control for its accounting and auditing practice is designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards. This review is almost always performed at the reviewed firm’s offices. To evaluate the effectiveness of the firm’s system of quality control, continued on page 22 www.wscpa.org

Leadership lens

Why Networking Will Fail You By Glenn Wisegarver, CPA, CGMA, WSCPA Chair for 2013-14

didn’t know the sender. The email arrived at work without anticipation. After a brief introduction, the writer got right to the point and expressed his desire to “network” with me. Random anonymous notes don’t normally move me, but the sheer audacity of the writer sparked sufficient curiosity to cause my fingers to craft a reply suggesting a brief telephone conversation.

networking and relationships. Networking often feels transactional and transient. Relationships sustain and endure upon a foundation of trust and affinity of interests. The significance of distinction between the two concepts is nurturing cultivation of the latter in order for roots to grow deeply.

At the appointed time my telephone sounded. The voice was that of a desperate gentleman seeking encouragement and, possibly, an opportunity. Like so many others during the bleakest epoch of the recession whose livelihood was extirpated, the young man, a controller at a smaller company, found himself unemployed. Cast adrift, he sought to supplement his sparse relationships with additional fresh personal associations. It didn’t escape me the timing of his outreach coincided with my broadcast of an available corporate controller role.

The occasion to invest in relationships is long before you need support or assistance. If you wait until you need help, it’s far too late.

His answers to my queries were telling. He lacked membership in any professional organization. Industry association participation was not within his purview. His attention had been centered on his young family with little instance or interest in extracurricular relationships or activities. And no, he never comprehended the value of pursuing a CPA license. Ten comfortable years with his prior employer ended suddenly. Just as unforeseen, he went from sole wage earner to unemployed. Hence, his abrupt frenetic interest in networking. After I informed the gentleman he could not be considered for the controller role as a current CPA license was required, I pondered what manner of advice or counsel I might offer. As delicately as I might, I drew contrast between

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I suppose he had no choice but to place hope upon transient transaction. During the preceding years, he probably viewed professional license as superfluous and relationships as mere conveniences. And he found himself a stranger in the crowded room of people he should already know and whose help he needed right now. As people, we are unique from animals both in intelligent ingenuity and cooperative social relationships. While we easily romanticize the individual, the genesis of our real strength emanates from a community comprised of cohesive organisms strongly connected to achieve greater accomplishments. The manner of our relationship determines the strength of

our connection. The fundamental molecule of relationships is trust. If I only just met you through email, a short telephone conversation, or perhaps momentarily in person, do I trust you? How likely am I to risk my professional reputation and personal honor to refer or recommend someone I hardly know and barely trust? If I do so at all, it will be tepid at best and qualified at worst. Trust is earned. Trust is earned in person over time, or validated through shared experiences. Development of trust may occur slowly over the course of years, or through short but intensive interactions. Trust is not transient, transactional, or accidental. The occasion to invest in relationships is long before you need support or assistance. If you wait until you need help, it’s far too late. My advice to the gentleman then is the same as my advice to you now. Deliberately invest in relationships beginning forthwith, but to recognize the relationship seeds sowed now need patience, nurturing, and trust to blossom. WSCPA offers a multitude of superlative opportunities to develop mutual relationships with a variety of fascinating CPA colleagues spanning industries and services. One of those relationships begun today may be exactly what you need one day in the future. You may find information on WSCPA opportunities online at www.wscpa.org. You can contact Glenn at gwisegarver@ gmail.com.

WashingtonCPA Fall 2013

cover story

Transaction Planning: Tax Issues Sellers Need to Know By Andrew Cates, CPA, Partner, Moss Adams LLP

elling a business is a complex endeavor, and perhaps nowhere is it more complex than in the realm of tax.There are a number of things to consider when planning for a transaction, each of which could have a significant tax impact on the seller—and possibly alter the shape or path of the transaction. With that in mind, let’s explore several of the more common issues faced by sellers of private businesses, along with examples and suggestions on how to approach their treatment.

Form of Transaction

What kind of transaction is taking place? Is it an asset sale, partial or total equity sale, merger, or stock-for-stock exchange? The form of the transaction is of utmost importance. Not only does it determine whether each party receives what it’s looking for from the transaction, but it also has significant tax consequences—for the seller as well as the buyer. The presence of tax attributes (net operating losses, tax credits), the type of assets present in the business (intangibles, workforce in place), and whether there’s significant goodwill (either within the business or with the owner of the business) each have an impact on how the buyer and seller view the transaction. Let’s look at an example. A closely held S corporation has significant intellectual property, and the buyer wishes, as is common, to purchase assets to obtain a step-up in the basis of the IP as well as future amortization deductions. Because the IP is a capital asset in the hands of the S corporation and creates capital gain when sold, the seller has the same gain as if it had sold its stock. A Section 338(h)(10) election allows the seller to sell stock but for tax purposes treat the sale as a sale of assets. This election is made jointly by the buyer and seller, and it’s best to have it be a condition included

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as part of the transaction documents. However, there are complicating factors that arise that can prevent the previous example from qualifying as a Section 338(h)(10) transaction. What if the buyer were ineligible to be an S corporation shareholder, as is often the case when investors form an investment entity (typically an LLC to allow both common and preferred investors) to make an acquisition? This creates tax issues that can be addressed but may require a different approach. For example, it may be possible to merge the target corporation into the LLC. For tax purposes this would

There are a number of things to consider when planning for a transaction, each of which could have a significant tax impact on the seller—and possibly alter the shape or path of the transaction.

keeping the structure simple might be more beneficial in the end. Both tax and nontax costs should always be part of the evaluation.

Management Participation

Many times key executives are asked to remain with the company for business reasons. Some may hold shares in the selling company, which can create additional complexity in structuring the sale if they expect to maintain some level of ownership after the transaction. Care must be taken with continued ownership. For example, in our situation above, if the present executives retained 25 percent ownership by receiving shares of the post-transaction entity, the requirements to make an election under Section 338(h)(10) wouldn’t be met because 80 percent of the target’s stock must be sold to meet the requirements of Section 338(h)(10). Evaluating how management will continue to participate in the business, including any compensation or noncompete agreements, is a key part of successfully structuring the sale. This will also dictate how the executives will be taxed and whether that amount is a payment for equity or for services and therefore as capital gains or ordinary income.

Transaction Costs

be treated as an asset sale followed by the liquidation of the S corporation. This achieves substantially the same results for the S corporation shareholders as the Section 338(h)(10) election would. Using a merger as part of the acquisition structure raises other issues as well.Third-party contracts may require additional approval or create additional expenses. When the parties evaluate the type of structure to use in an acquisition, each increased level of complexity will likely come with a higher level of service-provider costs. For this reason,

These can be significant in any transaction, and their treatment should be considered when planning a sale or acquisition. The contracts themselves determine where the costs belong, and the structure of the transaction and specific tax law affects their ultimate treatment. For example, let’s say a closely held S corporation is considering selling and engages a firm to help it prepare and present its materials to potential buyers. Many times the fees paid for such services are “success based” and are paid from funds upon the successful closing of www.wscpa.org

Tax Considerations for sales/mergers

the transaction.The IRS has simplified the treatment of these fees in Revenue Procedure 2011-29, whereby a taxpayer can elect to treat 70 percent of such costs as non-facilitative and possibly deductible. If the payment isn’t contingent on the successful closing of the transaction, however, the costs are generally required to be capitalized unless the taxpayer can show through sufficient documentation that those fees didn’t “facilitate the transaction.” Non-contingent costs incurred during the process of a transaction that don’t fall into the category of success-based fees—such as those paid to attorneys and CPAs—must also be considered. Having a plan and an understanding of how the costs should be treated before they’re incurred will help a company meet the documentation requirements. A best practice is to have service providers allocate fees to specific activities so that costs can be associated with those required to be capitalized and those that are deductible or amortizable.

Type of Buyer

As discussed earlier, the type of buyer could affect how the transaction is structured. For example, the joining of a consolidated group—if the buyer is a C corporation that acquires the stock of the S corporation target—carries a www.wscpa.org

variety of effects and requires elections and filings by both buyer and seller that should be included as part of the sale agreement. The responsibility for making the elections and filings and the timing for getting them completed should be considered in the agreements to ensure consistency and understanding between the parties. In contrast, if the acquirer is another S corporation, a qualified subchapter S subsidiary election can be made that will treat the acquirer as owning all the assets and liabilities of the target and a single tax return will be filed rather than a consolidated tax return, as could be the case had the buyer been a C corporation as discussed above. Determining the types of entities involved will also affect the scope of due diligence, since the types of filings, elections, and possibly tax attributes will all be affected.

Elections and Other Considerations

There are many different elections that can result from the form of—and participants in—a transaction. Best practice is to identify what specific elections will be made and who will be making them. Timing is also important, since it can affect when income is received by either the buyer or seller and the tax

deductions available. Accounting method changes may be possible if during the diligence process issues are discovered that can be corrected. Also important to consider are the many elections involved in either continuing the entity as a taxpayer within a new structure or making elections related to a newly formed entity. The most important step is to consider all the potential elections and filings while structuring the transaction, agree between the parties who is responsible for such elections, and include them as part of the sales agreement. This way the parties aren’t left to determine the consequences of the transaction after they go their separate ways. It will also assist the acquirer in the event of a subsequent examination by taxing authorities if the specific elections and filings have already been agreed to in advance and subsequent filings match the agreement.

Conclusion

Structures, elections, filings: Each facet of a transaction, in addition to the treatment for each participant, can be complicated. And lack of advanced planning only adds to that complexity, not to mention making the subsequent reporting much more difficult and costly. That’s why it makes sense for owners who are considering a transaction—and their advisors—to engage early on in the planning process, mapping out a path to a successful transaction that takes into account the tax impacts of their decisions. Andrew Cates has worked in public accounting with Moss Adams since 1995, with a focus on large corporate and partnership consolidations, formation and operation of privately held companies and LLCs, and acquisition and liquidation or sale of domestic and international businesses. You can reach him at (206) 302-6372 or andrew.cates@mossadams.com.

WashingtonCPA Fall 2013

acquisitions & Health Care reform

Acquisitions and the ACA: How Entities Need to Alter Their Thinking about Ownership Changes Under Health Care Reform By Rick Krueger, CPA, and Dan Frein, CPA, CliftonLarsonAllen LLP

Background on Penalties

However, before we dive into the considerations, a little background on the employer mandate provisions may be helpful. In 2015, the employer mandate provisions, as added by the ACA, provide

WashingtonCPA Fall 2013

ergers, acquisitions, and other changes in ownership have always been complex. Now, business owners and their advisors are finding that the Patient Protection and Affordable Care Act (ACA) is adding a new set of factors to consider during the planning and due diligence phases of the merger or acquisition. For this reason, there are a few critical areas of health care reform to review for any merger, acquisition, or other change in ownership. 1. How will the transaction affect the size of the company? Size is a major determining factor in how health care reform affects an employer in terms of penalties as well as access to an employer exchange plan and other requirements such as W-2 reporting and autoenrollment. 2. How will ownership be structured? Separate legal entities may have to be combined under controlled group rules for determination of large employer status. 3. How much will health care cost for the new organization? There is no simple equation for this. Employees’ income levels, hours worked, participation levels, and amount of employee and employer premiums are among the factors that can affect the employer’s health care costs.

that an applicable large employer (i.e., one with 50 or more full-time equivalent employees) could be subject to one of two potential penalties: the No Coverage Penalty or the Unaffordable Coverage Penalty. It is important to note that for ACA, a full-time employee is one averaging at least 30 hours per week or 130 hours per month. These penalties are sometimes referred to as the employer mandate because they require employers to offer coverage or pay a penalty. •

No Coverage Penalty If an employer does not offer its full-time employees and their dependents the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan, and at least one full-time employee receives a government subsidy through an exchange under ACA, then the employer is subject to this penalty. The penalty is $2,000 for each full-time employee (excluding the first 30 employees).

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Unaffordable Coverage Penalty This penalty applies if an employer offers its full-time employees and their dependents the opportunity to enroll in minimum essential coverage under an eligible employersponsored plan that either is unaffordable relative to an employee’s household income or does not provide minimum value. A plan is unaffordable if the employee’s premium payments for insurance coverage are more than 9.5% of his or her household income. However, there are safe harbors available that allow an employer to only look at a self-only premium compared to the employee’s income (even if the employee selects a plan with a spouse and/or dependents). If at least one full-time employee enrolls in an exchange and is certified to receive a government subsidy, the employer is subject to the penalty of $3,000 for each employee www.wscpa.org

acquisitions & Health Care reform

that receives the subsidy. The government subsidies are available for employees whose household income is between 100%-400% of the Federal Poverty Level (FPL). For employees in the State of Washington, the Medicaid program has been expanded and employees whose household income is below 138% of the FPL will be covered by Medicaid. 1. Size Matters As noted above, the employer mandate applies to large employers with 50 or more full-time equivalent employees. Whether a company is merging or simply growing, this cutoff is significant in determining the impact of the ACA. The chart below illustrates a few examples of how quickly penalties can increase as size changes. The closer a company is to the penalty thresholds, the more significant the impact will be. For example, in the second illustration, the

number of employees increased by 40% yet the penalty would increase 400%. Thus, understanding how the number of full-time employees affects employer penalties is an important consideration for all companies to review, particularly those planning mergers or acquisitions.

(IRC), the answer is almost always “no.” In addition, entities already legally separate may be required to be combined for penalty purposes based on their ownership structure and interactions.

The details defining controlled groups, common control groups, and affiliated 2. Ownership Matters service groups are governed by IRC SecThe rules relating to controlled groups, tions 414(b), 414(c), and 414(m). Basicommon control groups, and affiliated cally, the rules combine companies with service groups can play a significant role direct ownership in each other, common in determining how health care reform ownership, or companies with integrated affects an ownership change. Even when service and material cross-ownership. In there is not a direct relationship between a simple example, if an owner has a 100% two entities, the ACA may require the interest in a restaurant with 40 full-time entities to be combined for purposes employees and purchases a 100% interest of determining penalties under the in a second restaurant with 30 full-time employer mandate.The problem this cre- employees, it would need to combine ates is that small business owners are not the companies under ACA. This is the often thinking of this when they make a case even if they are separate legal entitransaction. Also, many owners ask us the ties with no interactions. Thus, two entiquestion,“Can I split my business to avoid ties that would otherwise be considered penalties under pay or play?” Because of small employers for penalty purposes, are how controlled groups, common control treated as a large employer under these groups, and affiliated service groups are rules. Additionally it is worth noting that treated under the Internal Revenue Code as ownership percentages change, the

Acquisitions and Penalties under the Affordable Care Act

Current Entity Size

Offers Insurance

Current Penalty

Employees Added from Acquisition

Updated Penalty

49 full-time equivalents (FTE), including 49 full-time employees (FT)

1 FT employee

$40,000 (50 FT - 30 excluded = 20 subject to penalty x $2,000)

50 FTEs, including 35 FT

$10,000 (35 FT - 30 excluded = 5 subject to penalty x $2,000)

20 FT employees

$50,000 (55 FT - 30 excluded = 25 subject to penalty x $2,000)

50 FTEs, including 31 FT

Yes, $2,000* but not affordable

19 FT employees

Lesser of $40,000 or # receiving subsidies times $3,000

* Although the unaffordable coverage penalty would apply to each of the 31 full-time employees that would take a government subsidy, the unaffordable coverage penalty is capped at the amount of the no coverage penalty. So even if all 31 full-time employees go to the exchange and receive a subsidy, the penalty would only be $2,000. Additionally in this example, any employees receiving subsidies through an exchange plan would no longer be part of the insurance sponsored by the employer. So any portion of the premium that had been paid by the employer would go away as well. www.wscpa.org

WashingtonCPA Fall 2013

acquisitions & Health Care reform

determination can become much more involved and sometimes subjective. This part of health care reform often surprises owners who may have multiple companies they consider to be independent from one another. Any time there is a merger, acquisition, or other change in ownership, it is important to take a step back and review it for controlled groups, common control groups, and affiliated service groups, as this can significantly affect estimating the financial impact of the ACA. 3. Cost Matters Now that we discussed how size is important and how ownership changes affect us, it is time to bring everything together and see how the overall cost will change. Planning for ownership changes now is difficult because of the major impacts health care reform will have in 2014 and 2015. The only real way to get a handle on how a transaction will affect costs is to sit down with an employee census from both organizations, the health plan documents, and do some hard math. In our practice, we have seen both cost increases and decreases predicted for 2015, and in both cases, the details were the determining factor. However, there are some preliminary questions to help a company get an idea of the financial impact of the ACA: •

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Are both entities presently offering adequate health coverage under ACA? If the combined entity does not offer insurance to essentially all its full-time employees, it will likely be assessed a penalty. Are there many employees who will become eligible using ACA’s definition of a full-time employee? Many companies have different eligibility requirements for their current health plan. What is the current participation rate for full-time employees? There are two primary

WashingtonCPA Fall 2013

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A merger or acquisition provides a great opportunity for employers to review their overall benefits packages, including health care. The best thing a company can do is gain an understanding of how health care reform will affect the company and its employees. factors that may affect the future participation rate: o Individual Mandate - As individuals seek to comply with the individual mandate in 2014, they have a greater incentive to seek out any affordable employer-sponsored health plans being offered. It is hard to predict the exact impact, but organizations with a younger population will likely see the greatest impact. o Changes in Spousal/Dependent Coverage - Even if an employee waives coverage because he/she is on a spouse’s plan, employers should consider the risk that the spouse’s plan will no longer offer health coverage. Even before ACA, there had been a trend of employers reducing the amount they subsidize spouses or adding surcharges for a working spouse with other access to insurance. Some surveys predict this trend will continue as the ACA becomes fully implemented.

Is the health plan part of the small group market? Starting in 2014, the adjusted community rating rules take effect. For small group and individual plans, insurers may no longer consider experience ratings and are limited in the differences they charge based on age. Effectively this means that younger, healthier plans will see very large premium increases and plans with an older, unhealthier employee population may see premium decreases.

Summary

Dan Frein is a partner with CliftonLarson Allen’s health care group, based in Bellevue. Rick Krueger is a manager withCliftonLarson Allen’s employee benefit plan group, based in Milwaukee, WI. For morecinformation, email dan.frein@claconnect.com or richard.krueger@claconnect.com or visit www.cliftonlarsonallen.com/healthreform.

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CFO’s Role in evaluating acquisitions

The CFO’s Role in Evaluating Acquisitions By Daniel M. Spilman

Ê Valuation – What is a fair price to pay for an acquisition? Ë Planning – What are the short and long-term financial implications of making an acquisition? Ì Financing – Can a company pay for the acquisition? Í Maximizing Value – How much value does the acquisition bring to the acquirer?

1.Valuation - What is a fair price to pay for an acquisition?

To answer this question the CFO must be knowledgeable about valuation skills and concepts. There are generally recognized to be three approaches to valuation: the asset, market and earnings approach. All three should be considered when analyzing an acquisition.The following is an outline of each method and how it fits into the analysis of an acquisition. Asset Approach - The asset approach assumes a business is worth the market value of the assets it owns. This approach is most commonly used for businesses of an investment nature or for businesses that have created no value beyond the value of their assets. In other words they have no goodwill. Operating businesses whose greatest www.wscpa.org

he CFO’s skills are indispensible when a company is considering an acquisition. Many of these skills fall into the realm of finance and are only briefly touched on in the accounting curriculum. CFOs and those aspiring to be CFOs must possess these finance skills in order to help their companies build value, rather than destroy value through an acquisition. The following is a discussion of four areas where financial skills and expertise help the CFO bring value to the acquisition process. value is derived using the asset approach are usually “worth more dead than alive.” From a practical standpoint, the asset value of an operating business is generally the lowest amount you could expect to pay for an acquisition. You always have to value a potential acquisition using the asset approach because the difference between the net asset value and what you pay for the business is goodwill that must be recorded on the financial statements. Market Approach – The market approach attempts to value a business by comparing it to “comparable” companies. The valuator looks at other companies that are being sold in the public markets or private companies which have sold in the past and determine a value multiple based on some measure of financial performance. An example of Enterprise Value multiples would be “Enterprise Value as a Multiple of Earnings Before Interest Taxes Depreciation and Amortization” (Value to EBITDA) or “Enterprise Value as a Multiple of Earnings Before Interest and Taxes” (Value to EBIT). There are two problems with this approach. First, you need access to a database of companies that have been

sold in the past, unless you are acquiring a company large enough to be comparable to a public company. The second and bigger problem with this approach is the term “comparable.” No two companies are exactly alike. Even if they are in the same industry, they more than likely have different plans, growth rates, requirements for reinvestment in working capital, cost structures, need for reinvestment for machinery and equipment, etc. Using a multiple to value a business assumes away all of these potential differences that impact value. If there is a benchmark multiple for companies in your industry you should use it as a factor in your analysis, but don’t base your entire analysis on that method. Many times these benchmarks are nothing more than industry folklore perpetuated by hopeful sellers and not representative of current market conditions. Earnings Approach – The earnings approach to valuation is the approach the CFO must rely on as the primary determinant of purchase price. While it is the most difficult to use, it is also the only method that has any theoretical basis. The approach to determining Enterprise Value (the value of a debt free business) using this method is easy to describe: the WashingtonCPA Fall 2013

CFO’s Role in evaluating acquisitions

Enterprise value of a business is equal to the cash flow available to all providers of capital, both debt and equity, discounted at an interest rate that reflects the weighted average cost of debt and equity, weighted at their market values. This earnings approach to valuation should be your weapon of choice in determining what to pay for an acquisition. To implement this approach you need an estimate of the future cash flows the company can expect to generate and the company’s weighted average cost of capital. An explanation of these inputs is beyond the scope of this article, but suffice it to say that this approach is the gold standard for valuing acquisitions. Paying more than the amount determined using this method will likely decrease the value of the acquirer.

2. Planning - What are the short and long-term financial implications of making an acquisition?

To answer this question the CFO must possess financial model building skills. Financial statement models generally fall into two general categories: shortterm and long-term. Depending on the acquirer’s financial condition, one or both of these models will be important in assessing the impact of an acquisition on the acquirer. Long-term models are generally designed to analyze a company’s overall financial condition for several years into the future. They are usually “big picture” models that help analyze cash flow, leverage and efficiency based on assumptions about profits.These models are especially helpful in analyzing the ability to meet loan covenants, the impact of strategic plans, leveraged buyouts and serve as the basis for determining cash flow in the valuation calculations mentioned above. Structurally, these models begin with the income statement, then use historical or planned relationships between the income statement and balance sheet to forecast all of the components of the balance sheet except cash and short-term borrowings. Finally the cash flow statement is developed, and the calculation of

WashingtonCPA Fall 2013

change in cash and change in short-term borrowings is determined. Because of the effect of interest expense on profit these models require circular logic, a tricky but easily mastered option in Excel. Short-term models are more detailed and are focused on cash flow. They are generally prepared to predict monthly cash flow for a year or more into the future and are frequently used to estimate cash flow, short-term borrowing requirements and collateral available to

CFO skills are indispensible to the acquisition process. CFOs need financial modeling and valuation skills along with knowledge of the terms and conditions expected from lenders and investors.

support short-term borrowing. They are especially useful for rapidly growing companies, companies in seasonal or cyclical industries and over-leveraged companies struggling with cash flow. They are much more detailed and less generic than longterm models. Every significant element of cash receipts and disbursements are modeled leading to the cash flow statement. After the cash flow statement is completed the income statement and balance sheet can be prepared. Notice the difference between the two types of models. In a long-term model the income statement and balance sheet are the first items to be forecasted, whereas in short-term models they are the last. The difference in approach is dictated by their different purposes.

All acquisitions require the preparation of at least two long-term models: one for the company being acquired and one for the acquirer showing the effect of the combined entity. The model for the company being acquired is used along with the valuation tools discussed above to determine how much to pay for an acquisition. The model for the combined entity is used for several things. First, using valuation tools to determine how much value can be added to the acquirer as a result of the acquisition. Second, to determine if financing can be obtained and the terms and covenants that can be expected based on the acquisition’s impact on financial condition. Short-term models are frequently prepared when the acquisition creates high leverage and lenders want assurance of cash flow to support loan payments and/or collateral to support loan balances.

3. Financing - Can a company pay for the acquisition?

The preparation of a long-term model of the combined entity gives a picture of the company’s financial condition and cash flow in the future. Using this information the CFO must determine if the acquisition is “bankable” based on the strength of the combined entity. In other words, can the CFO get the necessary financing from a bank, other lender or investor to complete the deal? This requires the CFO to be knowledgeable of what banks are thinking and their appetite for commercial loans and risk. CFOs also need to be familiar with other sources of financing in addition to banks including the terms and conditions to expect from each type of lender or investor. The CFO should be a company’s primary contact and negotiator for sources of growth capital. To effectively do this he or she must fully understand the company’s financial condition, stage in the company’s life cycle, and type of financial condition appropriate under the circumstances. Understanding the company’s financial condition means understanding if the company is credit worthy or a credit risk. To do this the CFO must trend and benchmark all four dimenwww.wscpa.org

CFO’s Role in evaluating acquisitions

sions of financial condition: profitability, liquidity, leverage and efficiency to know how banks, other potential creditors and investors perceive their company’s financial condition.

4. Maximizing Value - How much value does the acquisition bring to the acquirer?

An acquisition for which an acquirer paid fair market value creates no value for the acquirer! There are certainly exceptions to this rule. One obvious exception is when a large, usually publicly traded company with a low cost of capital, acquires a smaller company with a higher cost of capital. But when we are dealing with private companies the rule generally holds. Value is created by what the acquirer does with the acquisition to create value beyond the purchase price. Examples include lowering costs, combining marketing efforts, raising prices, eliminating redundant engineering costs, savings from vertical integration, controlling distribution channels, etc. Using the financial modeling and valuation skills mentioned above, the CFO could easily estimate the incremental value these improvements in the acquisition’s financial performance can create for their company. The challenge for the acquirer is to avoid paying for the benefits the acquirer brings to the acquiree, yet offer a high enough price to acquire the company which provides the profit enhancement opportunities. How can you avoid paying too much? First, value the acquisition based on its own historical financial performance. Other than “normalizing adjustments” to historical performance like excess officer or family member compensation, the financial performance should not be modified. Do not include growth or cost savings your company as acquirer will bring to the acquisition. Many times an owner will say that they have just introduced a new product or process that will dramatically improve financial performance and for which they should be paid. Typically this type of promise is handled with a contingent payment to the seller; the additional profit will be paid for when www.wscpa.org

and if it is realized. Another frequent area of disagreement between buyers and sellers is growth. Buyers will promise high long-term growth, whereas sellers should generally be reluctant to pay for any growth beyond inflationary growth.

Conclusion

CFO skills are indispensible to the acquisition process. But many of those skills are finance based and beyond those learned in the accounting curriculum. CFOs need financial modeling and valuation skills along with knowledge of the terms and conditions expected from lenders and investors. With these skills and knowledge a CFO can help his or

her company build value and become a valued member of the management team. Daniel M. Spilman, ABV, CFF, MBA, is a financialxconsultant and was the founder of Spilman, Hills & Heidebrink, Ltd., a 50 person firm located in Toledo, Ohio, now part of a regional CPA firm. Dan also teaches CFOs and aspiring CFOs in the WSCPA’s CFO Series (www.wscpa.org/ cfo). You can contact Dan at dan.spilman@ spilmanconsulting.com.

Learn more Mergers, sales and acquisitions October 28 Introduction to Mergers, Sales and Acquisitions for Closely-Held Businesses (BASB) WSCPA, Bellevue December 3 WEBCAST Deal Structure for Mergers and Acquisitions Transactions (WEBC153) Your Desk

March 28 Acquisitions to Grow the Business - Strategy, Structure, Integration and Due Diligence (AGB) WSCPA, Bellevue

CFO Series with Daniel Spilman, ABV, CFF, MBA October 18 | March 25 CFO Series - Financial Statement and Cash Flow Forecasting and Modeling (CFOSF01) WSCPA, Bellevue December 11 | May 16 CFO Series - Valuation, Acquisitions, Capital Projects and Leveraged Buyouts (CFOSV01) WSCPA, Bellevue

March 21 CFO Series - Bank Financing and Financial Statement Analysis (CFOSB02) WSCPA, Bellevue Learn about these and other courses/webcasts designed for CFOs and aspiring CFOs at www.wscpa.org/cfo

WashingtonCPA Fall 2013

news briefs

Special Member Discount from CCH Save 25% on U. S. Master Tax Guide 2014 Tax season is just around the corner. Order the U.S. Master Tax Guide through the WSCPA and save 25% off the $93.50 list price. Place your order online and pay only $70.12 plus tax and shipping. You will not be billed until after the book ships.(Cancel before shipment without charge.) An e-Book option is now available; download to your computer instantly once the book becomes available. The 2014 edition will contain timely

and precise explanations of federal taxes for individuals, corporations, partnerships, estates and trusts. To order, visit http://tax.cchgroup.com/ members/wscpa (search for “US Master Tax Guide 2014”). When you check out, enter priority code Y5596. If you are interested in other CCH top tax and accounting titles, save up to 40% on CCH’s current book specials. Use the link above and click on “Current Book Specials.”

http://tax.cchgroup.com/members/wscpa

Call for Nominations to WSCPA Board of Directors

The WSCPA Board Governance Committee is accepting nominations for the 2014-2015 Board of Directors. To submit a nomination, contact Ann Young (ayoung@wscpa.org). Nominations are due October 31.

WSCPA Mailing List Policy

The Society does not sell member e-mail or mailing addresses. Members may occasionally receive mail from the Society’s third party affinity partners that offer products or services deemed to provide value to members. If you prefer to be excluded from these mailings, send a request to unsubscribe from third-party mailings to memberservices@wscpa.org or call the Society at (425) 644-4800 or (800) 272-8273 (toll-free in Washington).

WashingtonCPA Fall 2013

WSCPA Accounting, Auditing, and Review Standards Committee Technical Hotline for Members

Ever wonder who you can turn to when you have a question about an accounting, auditing or review standards (AARS) issue? Members of the Accounting, Auditing and Review Standards Committee are available to discuss issues related to AARS with WSCPA members. To connect with a member of this committee, contact the WSCPA at (425) 5861142 or (800) 272-8273, Ext. 1142 (inside Washington). If you are interested in being a part of this technical hotline, consider joining the Accounting, Auditing and Review Standards Committee. Visit www.wscpa.org/ committees or e-mail memberservices@ wscpa.org.

CPA Referral Service

Begin Your Subscription Now for Tax Season Sign up now at wscpa.org (click “Find a CPA”) If your firm wants to build your client base, look no further than the WSCPA Find a CPA Referral Service. The cost of the enrollment is still just $175—less than 50 cents per day— and covers your listing through June 30, 2014. The WSCPA referral service is a great source of new clients looking for services in industries that match your firm’s expertise. Rather than using directory assistance to find a CPA, potential clients feel comfortable about their referral from the WSCPA. To enroll in the service visit www.wscpa.org, click on Find A CPA, then Enroll Online Today. To learn more about the service call Jennifer Ayoub at (800) 272-8273, Ext. 1142 (toll-free in WA) or (425) 586-1142 or e-mail jayoub@wscpa.org.

In Memoriam The WSCPA holds in memory with families and the larger community, these members who have recently passed on: Norman Anderson, CPA Stephen A. Coan, CPA Donna Rae Colburn, CPA Sydney Mylo Lindgren, CPA Peter A. Martinelli, CPA Rose M. Parkinson, CPA www.wscpa.org

social media

Join the conversation! LinkedIn Is anyone interested in speaking to our chapter about Financial Reporting Framework for Small- and MediumSized Entities?

Are you a member of the WSCPA group on LinkedIn? Join the conversation today! Plus, follow WSCPA news and find event photos on Facebook and Twitter. You may have missed the following discussions, news and posts:

Facebook Infographic: Rise of Forensic Accounting

Connect with fellow members, and participate in discussions at www.wscpa.org/linkedin

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IRS releases government shutdown contingency plan ow.ly/pm6yi Congratulations to 2012-2013 John L. Oâ&#x20AC;&#x2122;Brien Lifetime Achievement Award winner Robert G. Nuber, CPA-Retired, CMC. pic.twitter.com/ry9os2469t

Report for submission to WADOT regarding O/H Allocation for WADOT Contractor Did you notice that your B&O tax rate went down in July?

Twitter

The WSCPA Southwest Chapter put on a great Student Night last night... WashingtonCPA WSCPANPPugetSound WSCPANPSpokane WSCPAStudents

Follow the WSCPA on Twitter @wscpa

Follow the WSCPA Washington CPAs

WashingtonCPA Fall 2013

www.wscpa.org

advocacy

The Academy Awards . . . and Advocacy By Judy Love,WSCPA Director of Advocacy

But as the list grew longer, I had already exceeded my 600 word limit. I fear it will be like the Oscars, with the orchestra starting to play as someone drags me off the stage while I’m saying, “But wait! I’m not done!!” (And, “Do I really have to return the Harry Winston diamonds tomorrow?”) So, consider this a shout out to everyone who has contributed time, expertise and passion to these Oscar nominations for Best Documentary Feature:

2000

Significant changes to the Uniform Accountancy Act. SSB 5583: • Expanded definition of attest services • CPA=CPA: Work experience gained in workplaces other than public accounting qualifies for licensure. (Over 2,000 people initially made the “conversion.”) Non-licensed www.wscpa.org

What a privilege it’s been to work for and on behalf of some of the smartest, most dedicated and passionate professionals anywhere...

s I prepare to retire at the end of the year, I have been reflecting on the many changes to the profession, the majority of which were shaped through the WSCPA’s advocacy efforts. Of course, it is impossible to remember those efforts without thinking about all the Super Stars who have made my job easier, to say nothing of how each has enriched my life for the past 13 years. “Aha!” I thought. “There’s my column – a shout out to all the WSCPA volunteers who have made phone calls; sent emails; delivered PAC checks; reviewed drafts of legislation; worked tirelessly with State agencies, the DOR in particular; testified at legislative hearings; traveled to Olympia for ceremonial bill signings; negotiated with key stakeholders; stepped up to serve on the Washington State Board of Accountancy (WBOA); and sparred with me over philosophical and political differences (and you know who you are!).”

certificate holders who choose to take only the 4-hour Washington State Ethics course may use the title CPA-Inactive. Required all firms calling themselves CPA firms to be licensed Allowed ownership in CPA firms by non-CPAs with a majority CPA ownership still required; currently 36 active non-CPA owners Allowed commissions and contingent fees for non-attest services

applauded the Society’s efforts in communicating early and often with legislators about the need for cooler heads to prevail at the State legislature in the • wake of the Sarbanes-Oxley Act. During a House Commerce and Labor Commit• tee hearing, legislators expressed concerns about whether they should create a SOX-type law for Washington CPAs and their non-public company clients. Following testimony by WBOA repre• sentatives, the committee chair said, “So, what I’m hearing is we don’t need to do anything. Is that correct.” “Yes, sir, that is correct.” The committee moved on 2002 to another topic. We all breathed a sigh State Senator Georgia Gardner, CPA, of relief. WashingtonCPA Fall 2013

advocacy

2006

The Secretary of State (SOS) proposed an amendment to the Charitable Solicitations Act that applied aspects of Sarbanes-Oxley to charitable solicitations organizations. A number of organizations, including the WSCPA, pushed back, calling for more input. Following six Town Hall meetings with stakeholders around the State, the SOS withdrew the amendment. WSCPA members served as panelists for the meetings and on a subsequent task force to develop a more workable solution.

2008

Washington was among the first dozen states to make changes to the Uniform Accountancy Act that remove interstate practice barriers. Today, all but California and Hawaii have adopted full mobility, a remarkable collaborative effort by NASBA, individual State Boards of Accountancy, State Societies and the major firms.

2009 - 2010

The WSCPA, NASBA, the AICPA, a key legislator and individual members of the Board of Accountancy pushed back on pre-session proposals from the Governor’s office to move WBOA into the

WashingtonCPA Fall 2013

Department of Licensing. The proposal died. However, the Governor’s office reintroduced the legislation the following year. Three WSCPA members testified against the bill at a legislative hearing and literally hundreds of grassroots volunteers around the State communicated the Society’s opposition to their legislators. The bill was defeated. Stakeholder groups around the country continue to place a high priority on maintaining or gaining independent agency status for state boards of accountancy.

2012

After years of feedback from members who wished to have some formal way to indicate their ties to the profession after retirement—including a memorable luncheon during which some well past the age of Social Security eligibility offered to charter a bus and travel to Olympia to “get this thing fixed!”—WBOA and the WSCPA collaborated on writing the rule (WAC 4-30-058) that now allows the designation CPA Retired.

2013

Due to the efforts of the Society, including 120 members who communicated with legislators representing nearly every district in the State, a proposed

$3.2 million sweep of funds from the WBOA was removed from the State’s final budget. The relationship between the WBOA and the WSCPA is the one common element in the successes over the past eight years. Mutual respect, agreeing to identify areas of shared interest and to seek solutions, openness to listening and understanding when opinions diverge, and an unspoken “no surprises” rule have fostered a working relationship that is the envy of state society and accountancy board peers around the country. What a privilege it’s been to work for and on behalf of some of the smartest, most dedicated and passionate professionals anywhere; to have shared time in the political trenches and in watering holes around the country; to have learned when to capitalize or expense new or existing assets (“it depends”); and to have helped support and promote CPAs’ skills, knowledge and integrity. Thank you. You can contact Judy Love at jlove@ wscpa.org.

www.wscpa.org

non-profits

Form 990 Strategies for Review – Have the Organization Shine By Jane M. Searing, CPA, M.S.T., Shareholder and Karen Lewit Dunn, JD, LLM, Manager, Clark Nuber Not-for-Profit Tax Services Group

The longed-for streamlined executive summary is built into the form at Page 1.

This snapshot summary of the detail in the rest of the form contains a mission statement, a summary of financial information with a comparison to the prior year, unrelated business income, and statistics about numbers of board members, independent board members, and volunteers. This page should correspond to your understanding of the mission and operations of the organization. Program Service Accomplishments (Part III, page 2).

This is the section where the organization shouts its success and charitable accomplishments to anyone who will read page 2. Most reporters, donors, and potential donors get at least this far in the return and can either be pleasantly rewarded or woefully disappointed by the depth of content provided. Expenses, www.wscpa.org

he Form 990 may be an organization’s most publicly available document.The Form 990 is not only filed with the IRS, but it is open to public inspection and is on the web available to anyone. The return can be more than 40 pages. Whether you prepare or review the form for your clients or your own organization, where should you focus your attention to present the organization in the most positive light? Of course, we all want to assure that the Form 990 is technically correct, but we also should review the return with an eye toward how it may be interpreted by someone from the general public and be prepared to ask questions. So, where do you begin? A good start is the first two pages, which provides the organization’s financial results, explains its purpose, and its most important accomplishments over the past year.

Whether you prepare or review the Form 990 for your clients or your own organization, where should you focus your attention to present the organization in the most positive light? including grants and revenues from the four largest programs are detailed here. A well prepared Part III provides illustrative details about service accomplishments such as how many people attended productions, what quantity of medical supplies were provided, or the number and average amount of scholarships awarded. Does the mission statement on line 1 match your understanding of the organization’s mission? Are the programs described with enough detail to present the organization in the best light? Are there any new programs or changes in programs and if so, are the correct boxes checked and are the changes adequately described in Schedule O? Next, four areas of the Form 990 provide important information for decision makers in the organization as well as anyone who may be looking at the form on the web, such as potential donors or members of the media.

Compliance and Governance (Parts V, VI, and Schedule L).

This is where board members and management demonstrate the organization’s compliance with tax laws and strong governance policies. For example, if an organization provided required donor acknowledgments and filed required employment and foreign filings, Part V is the showcase of compliance. If the organization has safeguarded its assets, changed its governing documents, or favorably handled conflicts of interests, report this in Part VI. The explanations for these and other items in Parts V and VI are detailed on Schedule O. Governance policies and practices also are disclosed in Part VI.

Not all of the questions asked in Part VI reflect tax requirements for tax exempt status, but they do reflect the IRS opinion on what constitutes best practices in WashingtonCPA Fall 2013

non-profits

governance. The IRS believes there may be some correlation between the answers to the questions in Part VI and compliance with tax law. See “Are Form 990 Governance Questions a Good Indicator of Tax Compliance?” by Jane M. Searing in the August 2012 issue of Clark Nuber’s Governance Newsletter - In the Boardroom at www.wscpa.org/90article. Do your organization’s policies and procedures reflect good governance? Do the explanations in Schedule O correctly and completely reflect the practice of your organization? Schedule L is the sunlight schedule. It discloses transactions with “interested persons.” Although these transactions could result in prohibited private inurement or taxable excess benefit transactions, they also could demonstrate additional largess on the part of people close to the organization. An interest free loan by a board member to the organization is reported on Part II of Schedule L. This could be critical to the success of the theater organization’s upcoming season. The key to Schedule L is sunlight; full and complete explanation. If the organization’s Form 990 has a Schedule L included, are the transactions reported accurately and completely? Are all transactions that should be reported included? If a reported transaction was fair and reasonable, is there sufficient explanation to show that it was to the benefit or betterment of the organization?

Learn more November 21-22 Not-For-Profit Conference (NFPC) Bell Harbor, Seattle November 25 Form 990: A Comprehensive Approach with Jane Searing, CPA (EOF99003) WSCPA, Bellevue

WashingtonCPA Fall 2013

Compensation (Part VII and Schedule J).

These parts disclose who is in charge; listing the current and certain former directors, trustees, officers, key employees and the five highest compensated employees as well as their compensation. Note that there are specific IRS definitions for these positions. It is important to identify all individuals required to be listed. The definitions are dictated by the IRS in the instructions. Are the hours of each individual properly reported? Does their compensation match their annual calendar year reported compensation? Is compensation from a related or unrelated organization for services to your organization reported? On Schedule J, page 1, are any incentives or perks reported? Has the process for determining compensation been properly explained? How would this information appear to an outside person looking at it on the web? Fundraising (Part IX and Schedule G). If the organization does any fundraising or has any fundraising events, look at Core Form Part IX column D; and Schedule G. Do the fundraising expenses

reflect what you would expect given the organization’s fundraising activities? If it looks too low or if there are no fundraising expenses at all, are the amounts instead shown in Part VIII line 8b, direct fundraising event expenses? Is all the fundraising done by volunteers? If the organization receives contributions or grants, fundraising expenses should appear somewhere on the return, unless all the fundraising is done by volunteers or a related organization. Notice if there is an amount on Part IX, line 11e of the Core Form. If so, does this correspond to the information in Schedule G, Part I, line 2 and do the amounts there meet with your understanding of the organization’s fundraising agreements? Take a look at Parts II and III of Schedule G, if applicable. Do the amounts there agree with your understanding of these events? Note that the net income in Part II, which carries to Part VIII line 8c, may be low or even a loss because the contribution portion of the event revenue is reported separately and included with contributions in Part VIII line 1 of the Core Form. www.wscpa.org

non-profits

Reconciling to the audited financial statements (Schedule D Parts XI and XII).

Why does the total revenue and expense on the Form 990 not match the audited financial statements? Schedule D Parts XI and XII detail the adjustments made to the financial statement amounts to arrive at the Form 990 amounts. The most common differences are donated services, donated use of facilities, and unrealized gains or losses that may be included in revenue on the financial statements but not on the Form 990. Other differences are items of revenue that may be shown net of expenses on the financial statements or Form 990 but are broken out separately on the other report. For example, are there special event expenses which are subtracted from special event revenue in the Form 990 Part VIII but are reported as separate expenses on the financial statements?

www.wscpa.org

Working Together to Achieve Best Practices in Form 990 Reporting

Starting with a good understanding of the Form 990 and its peculiar definitions is important for nonprofit organizations. The Form 990 is open to public inspection for three years after it is filed with the IRS and is available on the web through www.guidestar.com. It may be looked at by donors, potential donors, the general public, and the media. The objective of the Form 990 is to demonstrate that the organization is fulfilling its taxexempt purpose, show that the financial resources of the organization are used to further these purposes, and ensure accountability and transparency of activities, governance, and relationships. This is best accomplished through an effective working relationship between the exempt organizations and their tax professional and is augmented by a high level

board review of the Form prior to filing by the board or committee of the board.

Jane M. Searing, CPA, M.S.T., is a Shareholder with Clark Nuber Not-for-Profit Tax Services Group in Bellevue. She can be reached at jearing@clarknuber.com. Karen Lewit Dunn, JD, LLM, is a Manager with Clark Nuber Not-for-Profit Tax Services Group. She can be reached at kdunn@clarknuber.com.

WashingtonCPA Fall 2013

Technology Tip

Maybe the Best Microsoft Office Keyboard Shortcut Ever By K2 Enterprises

Microsoft Office application, such as Excel, Word, and PowerPoint, causes the application to repeat its last command. Whether it’s inserting or deleting rows, applying formats, repetitively pasting data, or anything else you are working on in your familiar Microsoft Office applications, just remember to press F4 to repeat your last action. For a video demonstration of this tip, please visit www.tinyurl.com/k2tips149.

Learn more December 12-13 Information Technology Conference (ITC) Meydenbauer Center, Bellevue December 19 Excel Best Practices (EBP) Hampton Inn, Spokane

Our Peerless Volunteers (continued from page 4)

• •

the reviewer will test a reasonable cross-section of the firm’s engagements with a focus on high-risk engagements in addition to significant risk areas where the possibility exists of engagements being performed and/or reported on that are not in accordance with professional standards in all material respects. The reviewer may issue one of three opinions: pass, pass with deficiencies, or fail. The reviewer’s report and opinion is always discussed with the reviewed firm in an Exit Conference at the conclusion of the review. The reviewed firm is given the opportunity to respond in writing to the reviewer’s findings.

WashingtonCPA Fall 2013

•

After the review is completed, it is submitted to a Technical Reviewer (who is independent of the engagement and is hired by the WSCPA) to make sure the review was conducted in accordance with Peer Review Program standards. • The Peer Review report is then presented to a Report Acceptance Body (RAB) which is composed of experienced peer reviewers. The purpose of the RAB is to review and approve the rating assigned to the reviewed firm and to agree on any corrective measures that may be necessary to improve any deficiencies noted in the review. This is a simplified and generalized description of the national Peer Review

Program. I have learned so much about this program through my service on the national Peer Review Board during the past year. What has struck me the most is that this very elaborate and comprehensive program is so dependent on the willingness of CPA volunteers across the country to invest their time to learn, execute, and continuously improve it. These are the people who are protecting the reputation and public perception of the foundation of our profession, the attest function. We all owe these volunteers a great debt of gratitude. Thank you to all WSCPA members who are a part of this program. If you have any questions about the Peer Review program, please contact Julie Phipps, WSCPA Manager of Practice Quality, at jphipps@wscpa.org or (425) 586-1132. Or you can contact me at rjones@wscpa.org. www.wscpa.org

e are all busy and looking for ways to save time and become more efficient with the tools we use at work and at play. For the majority of business professionals, one of the ubiquitous tools in use is Microsoft Office. In this tip, you will learn perhaps the single best keyboard shortcut for Microsoft Office applications that you should commit to memory and begin using right away to reclaim valuable time. Suppose you are working on a Microsoft Office document – in this example, let’s assume an Excel spreadsheet – and you perform a certain action, such as inserting a row. Immediately after completing that action, you realize that you meant to insert two rows, not one. Instead of re-executing the keystrokes that you used to insert the row the first time, simply press F4 and, voila, Excel automatically inserts the row for you. More specifically, pressing F4 in a

Taxation

Are Subchapter K Partnership Taxation Questions Keeping You Up at Night? Be on the Lookout for these Complex Tax Issues By Lloyd Born, CPA

ost of my clients are CPAs who need help with complex tax issues that they previously have not faced in their tax practices.These tax issues are often so complex that they are difficult to research. Many of these issues require the simultaneous consideration of several code sections. These tax issues often fall into the areas of real estate, passive activity losses, property for services, discharge of indebtedness and S corporations. The area that I consider to be the most complex, however, is Subchapter K - partnership. I consult in this area more than any other area of the tax law. Here are examples of the recent complex tax issues in the partnership area that you may also face:

Capital Gains vs Ordinary Deduction with Goodwill at Partner Retirement

A CPA is retiring and the partnership redeems his interest and pays for the capital account and his share of goodwill based on his partnership percentage times one year of gross earnings. The retiring CPA wants capital gain treatment and the partnership wants an ordinary deduction when the goodwill is paid. In this situation, it is necessary to consider: a.

b. c. d.

Section 736(a) & (b) re payments to the retiring partner where Section 736(a) are ordinary deductions and section 736(b) are capital gains to the retiring partner; Section 1274 re imputed interest related to the deferred payment for the goodwill; Section 197 re the goodwill to the partnership; Section 754 to assure that the partnership actually gets tax basis in the goodwill;

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e. f.

Section 751 re the amount of ordinary gain on payment for the capital account; and Section 1411 re the impact of the new Medicare tax re interest or imputed interest on the deferred payments.

Special Allocations and Section 704(b)

A partnership is created by two equal partners with one partner contributing a land lease with a 40 year term that was signed just before the partnership was formed, and the other partner contributing $1,000,000 to the partnership to build a building on the land. The partner contributing the lease will also contribute the cash to make all the lease payments and will be specially allocating this deduction. The partner paying for the building will be specially allocating all the depreciation relating to the building. All other income and expenses will be shared equally. The partners have agreed that they will have made equal partnership contributions over the 40 year term of the lease. The key question to consider here is whether the special allocations have substantial economic effect under Section 704(b).

Partnership Assets and Basis under Section 754

A partner had purchased a partnership interest a few years ago at an appreciated price. Because the partnership had a Section 754 election in effect, the purchasing partner had a step up in basis in the appreciated assets. One of the major assets was distributed to one of the other partners in liquidation of the partnership interest.The issues raised by this scenario include: a. b. c.

The basis to the retiring partner; The basis adjustment to partnership assets required under Section 754; and How to treat the step up to the partner who had an additional basis in the asset distributed.

Section 469 Passive Activity Losses

Consider this example of a situation relating to Section 469 passive activity losses. Two LLCs each owned real estate that was leased to a closely held C corporation. One of the LLCs had tax losses and another had profits.The issues WashingtonCPA Fall 2013

Taxation

here include: a. The self-rental recharacterization rules which, if applicable, provide that losses are passive and profits are nonpassive; b. The grouping rules where multiple entities can be combined and treated as one entity, including what can be combined and timing for elections; c. The material participation rules to determine if the transaction is truly a self rental; and d. The former passive activity

rules to determine when any passive activity loss carryover can be used to offsetthe income of a former passive activity. If complex tax questions are keeping you up at night, getting the answers you need is easier than you might think. I have written and will be teaching nine new WSCPA courses on complex tax issues. Even the most experienced tax practitioners will appreciate the in-depth study of the code, regulations and cases presented in these courses.

Lloyd W. Born, CPA, teaches masters of taxation courses at Golden Gate University. Hear him at the Pacific Tax Institute, November 14-15 in Seattle, where he will discuss “Par tnership:xBasis Adjustments and Hot Assets” and “Passive Activities: Recharacterization and Self Charged Interest Rules.” You can contact Lloyd at lwborn@comcast.net.

Learn more

Lloyd Born will be teaching the following advanced-level taxation courses this fall at the WSCPA Learning Center in Bellevue. For details, visit www.wscpa.org/born.

December 9 Passive Activity Losses A-Z (PAL02) December 10 Imputed Interest and Original Issue Discount (IIO401) Unraveling the At Risk Rules (UAR402)

WashingtonCPA Fall 2013

December 16 Character of Income (COI401) Section 83 - Property for Services (S83401) December 17 Discharge of Debt Rules (DODR402) Vacation Home, Business Use of Home and Hobby Losses (VHB401)

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Financial Literacy

Does X Mark the Spot?

eneration X has been labeled the “baby busters,” the “Slacker generation,” and the “MTV Generation.” I suspect every generation has been labeled negatively by the older ones since the beginning of time. We’ve all heard how kids these days have it easier than we did. Of course, technological and scientific advances have made some things easier over time, but it doesn’t mean there aren’t challenges for each generation—they are just different. In past columns, I’ve written about the financial challenges facing the Millennials (those born after 1980). One generation that hasn’t been receiving as much attention but quietly may be warning us of what the future might hold is Generation X (those born 1965-1980). Sandwiched between two large generations, this group has its own hurdles and concerns when it comes to finances.They are stepping into the challenging role that Baby Boomers are all too familiar with: trying to balance the needs of the families they are raising while attending to the needs of the older generations. As a group, they are highly educated, independent, and have more of an entrepreneurial spirit than previous generations. In the workplace, they have challenged the culture, pushed for (or demanded) more work/life balance, and were the group to start job hopping to get ahead. The first generation to grow up with home computers, Gen Xers led the way with the Internet and you can see their fingerprints all over it.They have also seen tough economic times due to recessions, the dot com bust, acts of terrorism, the housing market implosion and cuts to employer benefits such as pensions and healthcare plans. As parents, many work hard to provide security for their children, including helping with the high cost of college or setting up their room again when they can’t find a job after college. As children, they increaswww.wscpa.org

ingly are helping their parents both financially and with their time. As adaptable as they may be, those are tough financial waters to navigate and still save adequately for retirement. Research seems to suggest that this group is very underprepared for retirement, in part due to heavy debt loads and the bad timing of economic recessions. They have accumulated less wealth than their parents at the same age 25 years ago. It’s predicted that this generation will need to adjust their lifestyle down to 50% of their income once they retire. Cash flow issues seem to be the largest reason for financial concerns: 49% find it difficult to meet household expenses each month, 58% consistently carry balances on their credit cards, and 44% find it difficult to make their payments on time. These percentages are significantly higher than the Boomers and Millennials. Many Gen Xers need to tap into their retirement funds or are using funds that should be going to retirement to cover short term expenses. Gen Xers’ biggest retirement concerns include running out of money, healthcare costs, not being able to maintain their standard of living, and meeting their monthly expenses. While some of these are similar to the concerns of Boomers, where they differ is the amount of retirement funds required to actually meet those needs coupled with their current debt loads. Boomers had more money saved before the recession and lower debt, so they were able to weather the turbulent times a little better. Their assets were four times higher than their debt, in contrast to Xers’ assets being only double their debt. Although, Gen Xers have grown up with the idea that Social Security will not really be there as a resource or at all, they haven’t been working to fill in the gap. Facing these gloomy prospects of retirement funds and their current financial stresses, what can this group do? Well, my

By Amy O’Donnell

hope is they will tap into their strengths to turn things around and in their usual fashion quietly work on changing how things go.While they are doing that, some things that can be done now are: • • • •

Maximize retirement opportunities, Always negotiate your salaries, Put the extra money from raises into retirement, and Strategically adjust lifestyle spending.

Many employers are evaluating how to offer financial wellness programs. CPAs can assist with this by organizing workshops, offering materials or websites, presenting at workshops or recruiting a fellow CPA to speak. Another way to address this concern is to set something up in your community targeting the specific needs and concerns of this group. The one thing Gen Xers need to hear is that they can change this direction and hearing from a trusted advisor like a CPA, will go a long way. Amy O’Donnell is WSCPA Director of Member Services. She oversees the Society’s Financial Education Outreach Program (formerly Financial Literacy Program) and can be reached at aodonnell@wscpa.org. Sources: PWC, Boston Globe, Forbes WashingtonCPA Fall 2013

management

The Top 5 Reasons Your Job Description Does Include Marketing Management By Heather Fitzpatrick, CPA, CGMA

s your marketing working? Does it generate a sufficient return given the size of the investment? Most executives and financial managers confess to at least some level of doubt relative to these questions. They are not sure what their marketing does, or whether it is delivering the outcomes it was supposed to, or how to measure it even if it is. In some cases, they are not even sure it can be measured. But it can. If you share any responsibility for your organization’s financial performance, managing marketing risks and measuring associated returns should be high on your list of concerns. Here are five reasons why. 1. Marketing is a big expense item for most organizations, and those dollars should be spent wisely. When you include both labor costs and other expenses, marketing makes up a big part of most organizations’ budgets. Regardless of your title, you should be concerned about whether your organization is spending its money wisely. 2. Because marketing requires time to produce results, it is critical to understand whether or not investments make sense before you begin. Think about it. If you add a new product or service line to your company, there is considerable investment that happens before that product or service begins generating revenue, much less repaying the investment. In most cases, and particularly with promotional efforts like advertising, marketing is not a current term expense with a current term revenue stream associated with it. With that kind

WashingtonCPA Fall 2013

If you share any responsibility for your organization’s financial performance, managing marketing risks and measuring associated returns should be high on your list of concerns.

of timeline, it is all too easy to inadvertently waste funds. 3. Effective management of marketing, at all levels within the organization, makes a significant difference in profitability. Benchmarking studies show that most companies invest roughly the same percentage of their expenses in marketing, and yet market leaders get a substantially better return on their marketing investment. My research indicates that most of that success is driven by the risk-management efforts of nonmarketing managers. 4. Market leaders credit marketing with their success ... and you should too, if you want to become one. In fact, the executives within market leading companies are so serious about the importance of marketing, that they consider

marketing management as one of the most important roles their CEO plays. 5. The final reason you should care is that YOU can make a difference. Whether you are the CFO, a CPA in public accounting, or an accounting manager with occasional marketing budgeting responsibilities, our research indicates that everyone in the organization needs to be working together in order to maximize marketing returns. Convinced but unsure how to get there? That’s not uncommon. The WSCPA has two resources available to help you improve your ability to manage marketing: • The WSCPA webcast, Marketing Management for CFOs and Other Financial Managers, will provide you with an overview of the common sources of risk in marketing www.wscpa.org

washington cpa foundation

CPA Profession’s Future Depends Upon What We Do Today By Kimberly Scott, CAE

•

investments, as well as some tools to help you more effectively manage marketing returns; and The AICPA publication, Marketing Management for Non-Marketing Managers: Improving returns on marketing investments, provides a more in depth guide to non-marketing managers who want to improve and measure their marketing returns.

Heather Fitzpatrick is the founder, president and CEO of MarketFitz, Inc., a management consulting firm focused on helping clients deliver measurably improved financial returns on marketfacing investments. A licensed CPA and CGMA with over 20 years’ experience as a marketing professional, Fitzpatrick brings unusual insight to her quest to help clients more effectively manage their marketing efforts. She can be reached directly at hfitzpatrick@marketfitz.com.

Learn more WEBCAST: Marketing Management for CFOs and Other Financial Managers October 28 (WEBA143) November 25 (WEBA144) December 27 (WEBA145) For details on this and other CPE programs designed for CFOs, please visit www.wscpa.org/cfo.

www.wscpa.org

he CPA designation means something to you. It is not easy to earn. In the business world it communicates that you are ethical, informed, well-educated, and trusted. The designation most likely helped you obtain, or is critical to, your job. It has created a career path that you can be proud of. When you have pride in your profession, you tend to want to protect it. You want to ensure it is always equated with high standards, the standards that make you proud to be called a CPA. One way to continue to encourage the best and the brightest to pursue the CPA designation is through scholarships. The cost of tuition is skyrocketing and many talented and qualified students need a little help to follow their dreams of becoming a CPA. Providing scholarships may fulfill our desire to give back, to do something good. However, it also directly helps the future of the CPA profession. As the WSCPA promotes the Foundation scholarships while at college campuses, it communicates to students that today’s CPAs care about them. Foundation scholarships create a link between students and the profession. Due to the efforts in our state, enrollment in accounting programs is on the rise. The WSCPA has a robust, diverse and growing student member population. Students are joining the Society at a young age, staying members as they transition to CPAs and contributing their time and dollars back to the profession as they progress in their careers. This is a great accomplishment. However, it is not the time to celebrate success yet.Various sources predict a shortage of accounting talent by 2018, and list the accounting and finance profession as having one of the top 5 “biggest worker shortages” (ManpowerGroup). The 2013 Salary Guide from Robert Half suggests that even with an increased number of students entering the accounting programs, the pace of experienced talent leaving the marketplace will outpace them. The guides states: “Although accounting firms have a growing demand for staff, they’re competing for talent with businesses that have a renewed interest in adding people with some of the same sought-after skills. Accounting firms are improving compensation as a result, but may need to further enhance their efforts, both to attract new talent and retain experienced accountants who may be tempted to consider more lucrative or lifestyle-friendly opportunities in private industry.” If you own a business, and especially if you are a partner in an accounting firm, you should be concerned about business viability given the predicted future shortage of CPAs. Please consider supporting the Washington CPA Foundation with a taxdeductible contribution. Your contribution helps the Washington CPA Foundation truly to make a difference in the future of the accounting profession in our state. Contributions of any denomination help. If you contribute $250 or more, you will join the Leadership Circle, which allows you to personally meet our scholarship winners each year. A contribution of $3,000 allows you to name a scholarship and help present it each year (Foundation scholarships are $3,000). Kimberly Scott, CAE, is WSCPA Vice President of Member Services and Executive Director of the Washington CPA Foundation. You can contact her at kscott@wscpa.org or (425) 586-1108. WashingtonCPA Fall 2013

member resources

Photo Album Small Firm Career Fair

CPA Tour for Japanese Accountants

August 21 - WSCPA Learning Center, Bellevue More than 80 student members and firm representatives attended the Small Firm Career Fair.

July 16 - Accountants from Japan, hosted by the University of Washington, visited the WSCPA Learning Center. During their visit Tom Bourne, CPA, talked with them about business succession and retirement planning.

View more photos at: Board of Directors Retreat

Junewww.facebook.com/washingtonCPAs 17-18 - Willows Lodge, Woodinville New and returning board members met in Woodinville for orientation, the June Board meeting, and team building activities, including a memorable murder mystery dinner. (L. to r.) Karissa Marker, Glenn Wisegarver, and Tom Donaghy prepare for their roles in the mystery.

Chairs Dinner

Martin Silver  L.L.M. (Tax) New York University  ü Author of Washington Taxes: Representing Taxpayers May 2 - ü Harbor Club, Before The Department of Revenue, (Butterworths 1992)  ü Adjunct Professor, Golden Gate Bellevue Representing Businesses and Professionals Nationwide, Confidentiality Guaranteed.

Once a year Past Presidents/Chairs of the OFFICES Society OF gather for an evening of Attorneys & Counselors networking, 1420 Fifthreminiscing, Avenue, Suite 3000 | Seattle, Washington 98101-2393 | Telephone (206) 224-3461 | Fax (206) 224-3459 and catching up on what’s new with the Society and the profession.

Martin Silver, P.S.

WashingtonCPA Fall 2013

www.wscpa.org

Events

2013

Networking Events

You’re invited... New Professionals Networking Events Date Aug 22

Location Developing Your Business Network at Daniel’s Broiler, Bellevue Puget Sound Oct 24 Mingling Oct 24 Mingling atatthe theMembers’ Reception, Pike’s Brewery, Seattle Members’ Reception Nov Spokane Chief’s Game, Spokane

Learn more & REgister: www.wscpa.org/CPE/catalog (enter “NP” in search box)

Pike’s Brewery, Seattle Complimentary (NP06) Chapter Networking Events Date

FEES: $20-$30 per event

Chapter - Location

SPOKANE

(unless noted otherwise)

Nov 20

Spokane Chiefs Game at the Spokane Arena (NP07) Learn more at www.wscpa.org/cpe/catalog.

Key Partners

Thank you!

sponsorS

Premier Partners

Supporters

Friends

Spokane Chapter

CHAPTER NETWORKING EVENTS

Spokane Chapter Meet the Legislators Reception October 22 - Barrister Winery, Spokane (CHSPOC3) South King County Chapter Happy Hour December 4 - Mick Kelly’s Irish Pub, Kent (CHSKDC2) Fall 2013 www.wscpa.org WashingtonCPA

member resources

Whether you are an employer looking to fill a vacant position or an individual looking for a job, the WSCPA Career Center is an online resource designed to meet these needs and so much more. For employers looking to hire a CPA the Career Center offers: •

• •

Online Job Posting—inexpensive job posting targeting Washington CPAs. Post job openings for up to 60 days for just $100. Non-Profit Organizations— list your open positions for free! Online Résumés—members can view online résumés.

For job seeking members looking for the perfect job or career information, the WSCPA Career Center offers the following services: •

Networking—connect with other members to find your next job. Attend WSCPA networking events, chapter events or participate on a committee. Visit the WSCPA Community section.

•

• • •

Social Networking—join the WSCPA members only LinkedIn group and the WSCPA Facebook group to make connections and find your next job lead. Visit the WSCPA Community section. Online Job Listings—view local jobs posted on the WSCPA Job Listing Service. Resumes—post your resume online. Salary Calculator—use this calculator from PayScale. Members also have access to a premium salary report for six months ($19.95 value). To access this resource, log on as a member and click on Career Center, then Salary Information.

In addition to the traditional services above, the WSCPA Career Center also features: • WashingtonCPA Classified Ads—looking for office space to rent, or even a practice to purchase or sell? You may just find what you are looking for in The WashingtonCPA Classified

WSCPA Membership—Your Access to Your Next Employee or Position

Ads at www.wscpa.org/Content/classifieds.aspx. •

Volunteer Positions— seeking an opportunity to give back to your community? Need a way to add experience on your resume? Browse volunteer opportunities for CPAs as requested by bona fide not-forprofit organizations in need of pro bono work by a CPA, or looking for CPAs to serve on their boards of directors.

Whether you are an employer or a job seeker, the WSCPA Career Center is your resource. Visit www.wscpa.org/ careers and start using these tools to your advantage!

IRS or Washington State Tax Problems? Experience Can Make A Difference. IRS, Revenue and Labor & Industries Audits: Administrative and Judicial Appeals & Refund Actions; Lien & Collection Problems; Tax Planning; Commercial Litigation. Martin Silver  ü L.L.M. (Tax) New York University  ü Author of Washington Taxes: Representing Taxpayers Before The Department of Revenue, (Butterworths 1992)  ü Adjunct Professor, Golden Gate Representing Businesses and Professionals Nationwide, Confidentiality Guaranteed.

OFFICES OF

Martin Silver, P.S. Attorneys & Counselors

1420 Fifth Avenue, Suite 3000 | Seattle, Washington 98101-2393 | Telephone (206) 224-3461 | Fax (206) 224-3459

WashingtonCPA Fall 2013

www.wscpa.org

WashingtonCPA Fall 2013

CPE Digest

C o n fe re n c e s Fall 2013 w w w. w s cpa. or g/conferenc es

Pacif ic NW C o n st r u ct io n In d u s t r y C onf e re nc e November 11-12 8:00 a.m. - 4:15 p.m. Seattle, WA

REGISTRATION FEES

The Pacific Northwest Construction Industry Conference, co-sponsored by the CFMA, will bring you up to speed on recent trends and provide essential guidance on hot topics affecting construction accounting and financial management. Noted experts in the construction industry will provide updates on economic trends, accounting and tax developments, and much more. GENERAL SESSIONS Panel: Affordable Care Act | Project Construction Management Federal Tax Update | Don’t Just Talk—Communicate! | Panel: Best Practices for Filing a Claim State Tax Developments for Construction | Economic Update Management Succession Planning for Construction Finance Professionals PLUS Concurrent Sessions

Acc ounting & Au d it in g C o nf e re nc e

Pacif ic Ta x In st it u t e

Standard Fee

$660

Fees include continental breakfast, lunch, free parking, and networking reception CPE

CODE

16 credits (up to 2 non-tech) CIC

ACCOMMODATIONS Room block details are at www.wscpa.org/conferences

WSCPA Members

$325

Standard Fee

$400

CPE Earn up to 9 tech credits when you attend Bonus Session Fees include CPE, continental breakfast, lunch, free parking, and networking reception CODE AAC

Location Bell Harbor International Conference Center, Seattle, WA

November 14-15 8:00 a.m. - 4:15 p.m. Seattle, WA| Webcast

REGISTRATION FEES

This is the Tax Institute to attend in Washington State! The Pacific Tax Institute, a conference designed for experienced tax professionals, will explore the many changes in federal tax. Spend two days at a stunning waterfront setting, taking a close look at important current federal tax issues that affect you and your clients.

WashingtonCPA Fall 2013

$585

REGISTRATION FEES

Stay aware of the latest developments affecting accounting and auditing standards with the Accounting & Auditing Conference. Learn the crucial guidance you need to stay in compliance with the many A&A rules affecting your practice, business or clients.

WSCPA & CFMA Members

Location Bell Harbor International Conference Center, Seattle, WA

November 14 8:00 a.m. - 4:10 p.m. Seattle, WA

GENERAL SESSIONS Healthcare - Insurance/Impact on Employer Federal Tax Update | Passive Activities | Estate Planning for the 99% Hot Topics in IRS Enforcement PLUS 4 Bonus Sessions | Concurrent Sessions

Location Bell Harbor International Conference Center, Seattle, WA

Win Windows 8/ Office 13 to be given away at the end of the conference.

Webcast

WSCPA Members

$700

$600

Standard Fee

$775

$675

CPE Earn up to 20 tech credits in 2 days when you attend the four Bonus Sessions Fees include CPE, continental breakfast, lunch, free parking, networking reception ACCOMMODATIONS Room block details are at www.wscpa.org/conferences CODES PTI, WEBPTI

www.wscpa.org

N ot-For-P ro fit C o n fe re n ce November 21-22 8:00 a.m. - 4:30 p.m. Seattle, WA | Webcast Are your approaches to the unique challenges facing not-for-profit organizations set on auto pilot? Be energized and get informed about trends and hot issues you needto know to be prepared for the current climate and its recent changes. Attend the Not-For-Profit Conference! GENERAL SESSIONS Extreme Non-Profit Makeover: How to Survive and Thrive in a Changing World | AICPA’s Overhauled NFP Audit & Accounting Guide Fraud: The Other Employee Benefit | Washington State Health Insurance Exchange FASB Update | New Horizons for the Accountant PLUS Concurrent Sessions | Luncheon Speaker

F r a ud C on fe re n ce December 6 8:00 a.m. - 4:20 p.m. Bellevue, WA

Location Bell Harbor International Conference Center, Seattle, WA REGISTRATION FEES

Webcast

WSCPA Members

$450

$400

Standard Fee

$525

$475

Fees include continental breakfast, lunch, free parking, and networking reception CPE Earn 16 credits (up to 2 nontech credits, up to 3 Yellow Book) CODES NFPC, WEBNFPC ACCOMMODATIONS Room block details are online Win Windows 8/Office 13 to be given away at the end of the conference.

Location Meydenbauer Center Bellevue, WA REGISTRATION FEES

Forget about the theories. The Fraud Conference will share real life fraud case studies and give you the facts you need to know to better understand how to detect and prevent fraudulent activity. Whether you work in public accounting, industry or government, you will gain an understanding of how recent fraud cases unfolded and were discovered. GENERAL SESSIONS These Weights Didn’t Measure Up! - A Fraud Case Study The End Game | Operation Smoke and Mirrors – A Fraud Case Study A Wolf in Sheep’s Clothing, Snake in the Grass, and a Trojan Horse Rolled into One Operation Dialing for Dollars – A Fraud Case Study Battling Fraud on the Front Lines of Xbox LIVE

In for m atio n Te c hn o l o g y Conf e re nc e December 12-13 8:00 a.m. - 4:00 p.m. Bellevue, WA

WSCPA & ACFE Members

$260

Standard Fee

$335

Fees include continental breakfast, lunch, and free parking CPE Earn up to 8 technical credits CODE FDC

Location Meydenbauer Center Bellevue, WA REGISTRATION FEES

How do you keep up with the latest technology? The Information Technology Conference is filled with 16 hours of fast-paced presentations designed to maximize your time and help you get a handle on the latest technology trends. Walk away with helpful tips, advanced techniques and proven tools to help you keep up with the ever-increasing pace of changes in computer technology. HIGHLIGHTS Tech Update 2013 | Mobile Strategies | Favorite Apps Excel’s Best New Features | CPA Firm Tech | Cloud Accounting Solutions Cloud Doc Management | QuickBooks | Dashboard Reporting Tools | Office 2013 Business Continuity/Disaster Recovery | Creating a Virtual Office | PDF Forms | Excel’s PowerPivot | Excel’s Guru Toolbox www.wscpa.org

WSCPA Members

$595

Standard Fee

$675

Fees include continental breakfast, lunch, and free parking CPE Earn up to 16 technical credits CODE ITC Win Windows 8 / Office 13 to be given away at the end of the conference.

WashingtonCPA Fall 2013

CPE DIgest

NEW CPE

events by location WSCPA education and events scheduled for October-December, 2013 are listed below, chronologically by location. If you are looking for a program in another location, it may be scheduled for later in the year. Using the online CPE/Event Catalog at www. wscpa.org/CPE/catalog, you can search by location. 2013 EVENT SCHEDULE To view and search the schedule of events through May 2014, visit the CPE/Event Catalog at www.wscpa.org. LEARN MORE To view complete course details, please visit the CPE/ Event Catalog at www.wscpa.org/CPE/catalog.

events added daily to: www.wscpa.org/CPE/catalog

A&A CS EB PFP

SUBJECTS The main subject area is listed for each program.

Ethics GNP MG PD SK

Need help finding a seminar or webcast? Call (800) 272-8273 or (425) 644-4800.

TAX TEC

Accounting and Auditing Consulting Services Employee Benefits Estate/Financial Planning Ethics Government / NFP Management Personal Development Specialized Knowledge Taxation Technology

Fees

Date

CPE Credits

Course

Type

WSCPA NonAICPA Code Member Member Member For more details, Discount Fee Fee search by code at www.wscpa.org/cpe

Facility

Subject

Bellevue Oct 21

Annual Update for Controllers: Current Issues and the Latest Trends, 8am-4pm

SKSB01

290

365

-30

WSCPA

Oct 22

Advanced CFO and Controller Skills, 8am-4pm

ACCS02

290

365

-30

WSCPA

ç Oct 22

Internal Control: Essentials for Financial Managers, Accountants and Auditors, 8am-4pm

ICDAD02

290

365

-30

WSCPA

A&A

Oct 23

Oct 24

Fiduciary Income Tax Returns - Form 1041 Workshop, 8am-4pm

1041

300

375

WSCPA

TAX

Surgent McCoy's Handbook for Mastering Basis, Distributions, and Loss Limitation Issues for S Corporations, LLCs, and Partnerships, 8am-4pm

HMBI

300

375

WSCPA

TAX

Oct 24

The Best Income Tax, Estate Tax, and Financial Planning Ideas of 2013, 8am-4pm

IEFP01

300

375

WSCPA

TAX

Oct 25

The Complete Guide to Payroll Taxes and 1099 Issues, 8am-4pm

CGPT

300

375

WSCPA

TAX

Oct 25

A Complete Guide to the Yellow Book, 8am-4pm

YBYB

300

375

WSCPA

GNP

Oct 28

Introduction to Mergers, Sales and Acquisitions for Closely-Held Businesses, 8am-4pm

BASB

290

365

-30

WSCPA

TAX

Oct 30

Common Frauds Risks, What Can Go Wrong? 8am-4pm

CFIC

290

365

-30

WSCPA

A&A

Oct 30

S Corporation Fundamentals, 8am-4pm

SCORP02

290

365

-30

WSCPA

TAX

ç Oct 31

Estates and Trusts Income Taxation: Tax Issues to Address in Preparing Form 1041, 8am-4pm

ITET

290

365

-30

WSCPA

TAX

Oct 31

Not-for-Profits: Start to Finish, 8am-4pm

NPAR

290

365

-30

WSCPA

GNP

Nov 1

Pass-Through Entities Income Tax Boot Camp, 8am-4pm

PFIT

290

365

-30

WSCPA

TAX

Nov 1

WNSF02

290

365

WSCPA

PFP

6 What's Next: 10 Success Factors to Best Manage Retirement, 8am-4pm

Nov 4

More QuickBooks for the Accounting Professional, 8am-4pm

COMQB202

255

330

WSCPA

TEC

Nov 5

Auditing Standards Update and Review by Walter Haig, 8am-4pm

AUUR01

310

385

WSCPA

A&A

Nov 5

ç Nov 6

Excel Tips, Tricks & Functions, 8am-4pm

COMEXF02

255

330

WSCPA

TEC

Auditing Not-for-Profit Entities: Superior Skills for an Effective and Efficient Audit, 8am-4pm

ANFP

300

375

WSCPA

GNP

Nov 6

Compilation and Review Standards Update and Review by Walter Haig, 8am-4pm

CRUR03

310

385

WSCPA

A&A

Nov 7

GAAP and OCBOAs for Small and Medium-Sized Entities Update and Review by Walter Haig, 8am-4pm

GOSME03

310

385

WSCPA

A&A

Nov 7

Social Security, Medicare, and Prescription Drug Retirement Benefits: What Every Baby Boomer Needs to Know Now, 8am-4pm

SSRB

300

375

WSCPA

TAX

Nov 8

Ethics Training for CPAs in Washington by Thomas Neill (A WA Requirement), 8-11:30am

CENRW403

185

220

WSCPA

Ethics

Nov 11

Larry Stein's Getting Ready for Tax Season - Individual Tax Clients (Including SelfEmployed Schedule C), 8am-4pm

GRTI

295

370

WSCPA

TAX

Nov 12

Larry Stein's Getting Ready for Tax Season - Self-Employed Business Tax Clients Form 1120S, Form 1065, Form 1120 and Schedule C, 8am-4pm

GRTF

295

370

WSCPA

TAX

Nov 13

Taxation of Washington Registered Domestic Partners and Same Sex Couples, 8-11:30am

RDP402

145

180

WSCPA

TAX

Nov 13

WA Trusts - The Accountant’s Role Beyond the 1041 (The New Washington Trust Law), 8am-4pm

WTLC

240

315

WSCPA

A&A

WashingtonCPA Fall 2013

Networking Event | S Season Ticket and Coupons N/A

www.wscpa.org

Education and events Fees

Date

CPE Credits

Course

Type

Code

For more details, search by code at www.wscpa.org/cpe

WSCPA NonAICPA Member Member Member Discount Fee Fee

Subject

Nov 14

Business Law Essentials for Accountants and CPAs, 8am-4pm

BLT01

290

365

Nov 14

New "Repair Regs" - Sec 263, 8am-4pm

NRR02

290

365

Nov 15

Handling IRS Disputes: Tips and Traps to Look for When Dealing with the IRS, 8am-4pm

DIRS

290

365

-30

Nov 15

Revenue Recognition: Getting the New Standard Right, 8am-4pm

RRNS03

290

365

-30

WSCPA

A&A

Nov 18-19

Surgent McCoy's Basic Audit Staff Training -- Level I, 8am-4pm

AST1

495

610

WSCPA

A&A

Nov 19

Gary Zeune's Detecting and Preventing Fraud and Abuse in Government and Non-Profits, 8am-4pm

FAGNP

290

365

WSCPA

GNP

Nov 20-21

Surgent McCoy's Experienced Audit Staff Training -- Level II, 8am-4pm

AST2

495

610

WSCPA

A&A

WSCPA

Nov 20

Nov 21

1.5 S l

Nov 22

Gary Zeune's Controller to CFO: 11 Skills to Transform Yourself, 8am-4pm

GCFO

290

365

Nonprofit Accounting and Auditing Update, 8am-4pm

NAU02

290

365

Professional Issues Update, 7:30-9am

CHBANV1

Accounting for Business Combinations and Consolidation of Noncontrolling Interests, 8am-4pm

BCO

290

365

-30

Facility

-30

WSCPA

TAX

WSCPA

TAX

WSCPA

GNP

McCormick & Schmick's Seafood

WSCPA

A&A

Nov 25

Preparing Complex 1040s, 8am-4pm

PCR

290

365

WSCPA

TAX

Nov 25

Fraud Alert! Prevention & Follow-Up, 8am-4pm

290

365

Sheraton Bellevue

A&A

Nov 25

Form 990: A Comprehensive Approach with Jane Searing, CPA, 8am-4pm

EOF99003

290

365

WSCPA

GNP

-30

Nov 26

Tax Aspects of Bankruptcy: All Need Not Be Lost, 8am-4pm

TAOB02

290

365

WSCPA

TAX

Nov 26

Risk Analysis and Management: What Every Financial Manager Must Know, 8am4pm

RAM

290

365

WSCPA

A&A

Dec 2

Washington State Community Property and Estate Tax Law Update, 8am-4pm

WKCP01

290

365

WSCPA

TAX

Dec 2

Cash Flow Planning & Management Using Excel, 8am-4pm

COMEXCF

255

330

WSCPA

TEC

Dec 3-4

Tax Staff Training- Level 2 Business, 8am-4pm

TSTB

495

610

WSCPA

TAX

Dec 3

Excel Pivot Tables, 8am-4pm

COMEXP03

255

330

WSCPA

TEC

Dec 3

Advanced Update for Compilation Review and Accounting Services, 8am-4pm

RPCR

285

360

ç Dec 4

A&A Year in Review: Exploring the Latest Issues and Challenges Facing CPAs, 8am-4pm

AAYR

300

375

Dec 4

2013 Hot Tax Topics, 8am-4pm

HOT

290

365

ç Dec 5

Revenue Recognition: A New Day is Dawning, 8am-4pm

RERE

300

375

Dec 5

AICPA's Annual Tax Update: What Individuals and Sole Proprietors Need to Know, 8am-4pm

TSUI03

290

365

Dec 6

OMB A-133 from A to Z, 8am-4pm

A133

300

Dec 6

Effective And Efficient Senior-Level Review Of Tax Returns In Busy Season, 8am4pm

ERTW

300

Dec 6

Dec 9-10

 Fraud Conference, 8:00am-4:20pm

Surgent McCoy's Beginning In-Charge Training -- Level III, 8am-4pm

-30

Sheraton Bellevue

A&A

WSCPA

A&A

Sheraton Bellevue

TAX

WSCPA

A&A

WSCPA

TAX

375

WSCPA

GNP

375

WSCPA

TAX

-30

FDC

260

335

Meydenbauer Center

AST3

495

610

WSCPA

A&A

Dec 9

Passive Activity Losses A-Z, 8am-4pm

PAL02

290

365

WSCPA

TAX

Dec 10

Imputed Interest and Original Issue Discount, 8-11:30am

IIO401

145

180

WSCPA

TAX

Dec 10

Unraveling the At Risk Rules, 12:30-4pm

UAR402

145

180

WSCPA

TAX

Dec 11-12

Surgent McCoy's Experienced In-Charge Training -- Level IV, 8am-4pm

AST4

495

610

WSCPA

A&A

Dec 11

CFO Series - Valuation, Acquisitions, Capital Projects and Leveraged Buyouts, 8am-4pm

CFOSV01

290

365

WSCPA

The Basics of Filing an Offer in Compromise, 8am-4pm

BFOF

290

365

WSCPA

TAX

ITC

595

675

Meydenbauer Center

TEC

CFO

290

365

WSCPA

Dec 12 Dec 12-13 Dec 13

8 16.5

 Information Technology Conference, 8am-4pm

Dec 13

ç Dec 16

Chief Financial Officer - Executive Level Skills for Financial Managers, 8am-4pm Y

Latest Developments in Nonprofit Accounting and Auditing 2013, 8am-4pm

NPAA

300

375

WSCPA

GNP

Occupational Fraud: The Top 50 Tips on How to Prevent Executives, Managers and Employees from Stealing and Not Getting Caught, 8am-4pm

OCFR

300

375

WSCPA

A&A

Dec 16

Character of Income, 8-11:30am

COI401

145

180

WSCPA

TAX

Dec 16

Section 83 - Property for Services, 1-4pm

S83401

145

180

WSCPA

TAX

www.wscpa.org

Networking Event | S Season Ticket and Coupons N/A

WashingtonCPA Fall 2013

Education and events

Fees

Date

CPE Credits

Course

Type

Code

For more details, search by code at www.wscpa.org/cpe

WSCPA NonAICPA Member Member Member Discount Fee Fee

Facility

Subject

ç Dec 17

Forensic Accounting: A Comprehensive Guide to Conducting Financial Fraud Investigations, 8am-4pm

FOAC

300

375

WSCPA

A&A

Dec 17

Discharge of Debt Rules, 8-11:30am

DODR402

145

180

WSCPA

TAX

Dec 17

Vacation Home, Business Use of Home and Hobby Losses, 12:30-4pm

VHB401

145

180

WSCPA

TAX

Dec 18

Introduction to Partnership Taxation, 8am-4pm

IPT

290

365

Sheraton Bellevue

TAX

Dec 18

Washington State CPA Ethics and New Developments by Mark Hugh (A WA Requirement), 8-11:30am

CENRW412

185

220

WSCPA

Ethics

Dec 19

The Best Individual Income Tax Update Course by Surgent McCoy, 8am-4pm

BITU02

300

375

WSCPA

TAX

Dec 19

Exploring Internal Control Deficiencies: Identifying, Evaluating and Communicating with Management, 8am-4pm

ICDAR01

290

365

WSCPA

A&A

-30

Dec 19

Washington Tax and New Developments by Mark Hugh, 8am-4pm

WSTX05

290

365

Sheraton Bellevue

TAX

Dec 20

The Best S Corporation, Limited Liability, and Partnership Update Course by Surgent McCoy, 8am-4pm

BCPE02

300

375

WSCPA

TAX

Dec 20

Construction Contractors: Accounting, Auditing and Tax, 8am-4pm

CAAT

290

365

WSCPA

A&A

Dec 30

Compilation and Review Standards Update and Review by Walter Haig, 8am-4pm

CRUR05

310

385

WSCPA

A&A

Dec 31

GAAP and OCBOAs for Small and Medium-Sized Entities Update and Review by Walter Haig, 8am-4pm

GOSME05

310

385

WSCPA

A&A

Nov 21

Financial Statement Analysis - A Realistic Approach, 8am-4pm

FSA

290

365

Best Western Plus Lakeway Inn & Conv Ctr

A&A

Nov 22

Three-For-One Accounting, Assurance, and Compilation Annual Update, 8am-4pm

TFOUD

290

365

Best Western Plus Lakeway Inn & Conv Ctr

A&A

Dec 2

Washington CPA Regulatory Ethics by James Rigos (A WA Requirement), 8-11:30am

CENRW407

185

220

Best Western Plus Lakeway Inn & Conv Ctr

Ethics

Dec 18

Federal Tax Update Individuals (Form 1040), 8am-4pm

FTUI03

295

370

Best Western Plus Lakeway Inn & Conv Ctr

TAX

Oct 25

Advanced Tax Structures: Using Tiered Partnerships, Multiple Corporations, Series LLCs and Disregarded Entities, 8am-4pm

ADTS

300

375

Comcast Arena Everett Events Ctr

TAX

Oct 29

Update for Accountants and Auditors: Latest Developments, 8am-4pm

AUAA03

290

365

Comcast Arena Everett Events Ctr

A&A

Nov 6

The Best Federal Tax Update Course by Surgent McCoy, 8am-4pm

BFTU01

300

375

Comcast Arena Everett Events Ctr

TAX

Nov 13

Larry Stein's 1040 Solutions and Strategies (Year-End Tax Compliance), 8am-4pm

ITYE

295

370

Comcast Arena Everett Events Ctr

TAX

Internal Control: Essentials for Financial Managers, Accountants and Auditors, 8am-4pm

ICDAD01

290

365

Three Rivers Conv Ctr

A&A

-30

Bellingham

Everett

-30

Kennewick ç Oct 21

-30

Nov 18

Federal Tax Update Individuals (Form 1040), 8am-4pm

FTUI01

295

370

Three Rivers Conv Ctr

TAX

Nov 19

Federal Tax Update - C & S Corporations, Partnerships & LLCs (Forms 1120, 1120S & 1065), 8am-4pm

FTUB01

295

370

Three Rivers Conv Ctr

TAX

Nov 20

Washington Tax and New Developments by Mark Hugh, 8am-4pm

WSTX02

290

365

Three Rivers Conv Ctr

TAX

Nov 21

Washington State CPA Ethics and New Developments by Mark Hugh (A WA Requirement), 8-11:30am

CENRW404

185

220

Three Rivers Conv Ctr

Ethics

S l

How to Read an S Corporation Tax Return Like a Pro!, 8-9am

CHSKNV1

Golden Steer Restaurant

TAX

S l

Happy Hour Networking Event, 5:30-7pm

CHSKDC2

Mick Kelly's Irish Pub

Washington Tax and New Developments by Mark Hugh, 8am-4pm

WSTX03

290

365

Embassy Suites HotelLynnwood

TAX

Washington State CPA Ethics and New Developments by Mark Hugh (A WA Requirement), 8-11:30am

CENRW408

185

220

Embassy Suites HotelLynnwood

Ethics

Kent Nov 21 Dec 4 Lynnwood Dec 5

Dec 6

Dec 16

Federal Tax Update Individuals (Form 1040), 8am-4pm

FTUI02

295

370

Embassy Suites HotelLynnwood

TAX

Dec 17

Federal Tax Update - C & S Corporations, Partnerships & LLCs (Forms 1120, 1120S & 1065), 8am-4pm

FTUB02

295

370

Embassy Suites HotelLynnwood

TAX

WashingtonCPA Fall 2013

Networking Event | S Season Ticket and Coupons N/A

www.wscpa.org

Education and events Fees

Date

CPE Credits

Course

Type

Code

For more details, search by code at www.wscpa.org/cpe

WSCPA NonAICPA Member Member Member Discount Fee Fee

Facility

Subject

Olympia Oct 29

Nov 22

S Corporation Fundamentals, 8am-4pm

SCORP01

290

365

Ethics Training for CPAs in Washington by Thomas Neill (A WA Requirement), 8-11:30am

CENRW405

185

220

Dec 3

AICPA's Annual Tax Update: What Individuals and Sole Proprietors Need to Know, 8am-4pm

TSUI02

290

365

Dec 11

Accounting and Auditing Update, 8am-4pm

AAU02

290

365

Mingling at the Members' Reception, 6-8:30pm

NP06

Shortcuts to Tax Cuts: Individual, Social Security & Retirement Planning Tools and Strategies, 8am-4pm

TXCU02

300

-30

Indian Summer Golf

TAX

Indian Summer Golf

Ethics

Indian Summer Golf

TAX

Indian Summer Golf

A&A

The Pike Brewing Company

375

Best Western Plus Executive Inn

TAX

Bell Harbor Int'l Conf Ctr

Best Western Plus Executive Inn

TAX

-30

Seattle Oct 24

ç Nov 4

Nov 11-12

16  Pacific NW Construction Industry Conference, 8am-4:30pm 6

CIC

660

Nov 14

ITTF

290

365

Nov 14-15

 Pacific Tax Institute, 8am-4:30pm

PTI

700

775

Bell Harbor Int'l Conf Ctr

TAX

Nov 14



Accounting & Auditing Conference, 8am-4:30pm

AAC

325

400

Bell Harbor Int'l Conf Ctr

A&A

Nov 15

Partnership and LLC Taxation: Advanced Issues, 8am-4pm

PTAI

290

365

Best Western Plus Executive Inn

TAX

Nov 20

Passive Activities & Rental Real Estate Income Tax Issues, 8am-4pm

PARE

295

370

Best Western Plus Executive Inn

TAX

Nov 21-22

16  Not-for-Profit Conference, 8am-4:30pm Y 6

NFPC

525

Bell Harbor Int'l Conf Ctr

A&A

Dec 2

Ethics Training for CPAs in Washington by Thomas Neill (A WA Requirement), 8-11:30am

CENRW406

185

220

Washington State Conv Ctr

Ethics

Dec 4

Accounting for Deferred Income Taxes: Case Studies for ASC 740 (SFAS No. 109 and FIN 48), 8am-4pm

AIT

290

365

Best Western Plus Executive Inn

A&A

Dec 10

What Board Treasurers Need to Know, 8-11:30am

WBTN401

120

Best Western Plus Executive Inn

GNP

Accounting and Reporting Standards Annual Update and Review by Walter Haig, 8am-4pm

ARSUR03

535

650

DoubleTree Guest Suites Southcenter

A&A

6 How to Deal with Conflict and Be More Productive and Less Stressed, 8am-4pm

HDCM

285

360

Hampton Inn Spokane

International Taxation for Business, 8am-4pm

-30

Southcenter (Tukwila) Dec 19-20 Spokane Oct 23 Oct 28

Update for Accountants and Auditors: Latest Developments, 8am-4pm

AUAA02

290

365

-30

Hampton Inn Spokane

A&A

Oct 29

Tax Strategies for Business: Planning Techniques and Current Issues, 8am-4pm

CHTX01

290

365

-30

Hampton Inn Spokane

TAX

Oct 30

Taxation Fundamentals of LLCs and Partnerships: Internal Revenue Code Subchapter K, 8am-4pm

TLLLO02

290

365

-30

Hampton Inn Spokane

TAX

Oct 31

S l

Creating a Competitive Spokane Region, 12-2pm

CHSPOC1

The Lincoln Center

S l

Spokane Fall Series Registering for All Four Classes

CHSPFS1

180

The Lincoln Center

Oct 31-21 Nov 5

Latest Developments in Government and Nonprofit Accounting & Auditing 2013, 8am-4pm

GNAA

300

375

Hampton Inn Spokane

GNP

Nov 7

S l

Social Security, 12-2pm

CHSPNV3

The Lincoln Center

TAX

Nov 12

The Best Individual Income Tax Update Course by Surgent McCoy, 8am-4pm

BITU01

300

375

Hampton Inn Spokane

TAX

Nov 13

S l

E Claire Daniels Symposium: Accounting and Business Issues (NON-STUDENTS), 12-2pm

CHSPNV1

The Spokane Club

A&A

Nov 13

S l

E Claire Daniels Symposium: Accounting and Business Issues (STUDENTS ONLY), 12-2pm

CHSPNV2

The Spokane Club

A&A

Nov 13

S l

Accounting and Business Issues at Litehouse Foods Inc, 12-2pm

CHSPNV6

The Spokane Club

Nov 14

S l

Making Your Business Social, 12-2pm

CHSPNV4

The Lincoln Center

TEC

www.wscpa.org

Networking Event | S Season Ticket and Coupons N/A

WashingtonCPA Fall 2013

Education and events

Fees

Date

CPE Credits

# Nov 20

Course

Type

Code

For more details, search by code at www.wscpa.org/cpe

WSCPA NonAICPA Member Member Member Discount Fee Fee

Facility

Subject

Spokane Chiefs Game, 6-8:30pm

NP07

Spokane Arena

S l

Retirement Planning and Investments, 12-2pm

CHSPNV5

The Lincoln Center

Nov 21

Nov 25

GAAP and OCBOAs for Small and Medium-Sized Entities Update and Review by Walter Haig, 8am-4pm

GOSME04

310

385

Hampton Inn Spokane

A&A

Nov 26

Compilation and Review Standards Update and Review by Walter Haig, 8am-4pm

CRUR04

310

385

Hampton Inn Spokane

A&A

Dec 3

Dec 9

Washington State Community Property and Estate Tax Law Update, 8am-4pm

WKCP02

290

365

Hampton Inn Spokane

TAX

Ethics Training for CPAs in Washington by Thomas Neill (A WA Requirement), 8-11:30am

CENRW409

185

220

Hampton Inn Spokane

Ethics

Dec 12

Corporate Finance Check-up - Renovate Your Analytical Toolbox, 8am-4pm

CFC02

290

365

Hampton Inn Spokane

Dec 13

Collection Defense Tactics, 8am-4pm

CDTS

290

365

Hampton Inn Spokane

TAX

Dec 18

Small Business Internal Controls, Security and Fraud Prevention and Detection, 8am-4pm

ITCS02

290

365

Hampton Inn Spokane

A&A

Dec 19

Excel Best Practices, 8am-4pm

EBP01

290

365

Hampton Inn Spokane

TEC

Tax Strategies for Business: Planning Techniques and Current Issues, 8am-4pm

CHTX02

290

365

Pacific Grill Events Center

TAX

Tacoma Oct 31

l C

-30

Nov 5

The Best Income Tax, Estate Tax, and Financial Planning Ideas of 2013, 8am-4pm

IEFP02

300

375

Pacific Grill Events Center

TAX

Nov 13

The Best S Corporation, Limited Liability, and Partnership Update Course by Surgent McCoy, 8am-4pm

BCPE01

300

375

Pacific Grill Events Center

TAX

Nov 18

Gary Zeune's Detecting and Preventing Internal Fraud, Theft and Abuse, 8am-4pm

IFTA

290

365

Pacific Grill Events Center

A&A

Nov 20

Dec 2

Dec 5

Dec 6

Dec 9

Dec 10

FASB Industry Review: Targeting Recent GAAP Issues, 8am-4pm

FASBI01

290

365

-30

Pacific Grill Events Center

A&A

Accounting and Reporting Practices of Not-for-Profit Organizations, 8am-4pm

FSNPO02

290

365

-30

Pacific Grill Events Center

GNP

Pacific Grill Events Center

TAX

-30

Pacific Grill Events Center

The Best Federal Tax Update Course by Surgent McCoy, 8am-4pm

BFTU02

300

375

Business Law Essentials for Accountants and CPAs, 8am-4pm

BLT02

290

365

Washington Tax and New Developments by Mark Hugh, 8am-4pm

WSTX04

290

365

Pacific Grill Events Center

TAX

Washington State CPA Ethics and New Developments by Mark Hugh (A WA Requirement), 8-11:30am

CENRW410

185

220

Pacific Grill Events Center

Ethics

AICPA's Annual Tax Update: What Individuals and Sole Proprietors Need to Know, 8am-4pm

TSUI01

290

365

Heathman Lodge

TAX

Vancouver Nov 11

Dec 10

Dec 16

-30

Accounting and Auditing Update, 8am-4pm

AAU01

290

365

Heathman Lodge

A&A

Washington CPA Regulatory Ethics by James Rigos (A WA Requirement), 8-11:30am

CENRW411

185

220

Heathman Lodge

Ethics

Your Desk - Webcasts and Webinars Oct 21

WEBCAST Best Practices for Industry - Understanding Your Liability and How to Secure and Protect Corporate Information, 6am-2pm

WEBA245

195

245

Webcast

Oct 21

WEBCAST Deal Structure for Mergers and Acquisitions Transactions, 8:30am4:30pm

WEBC081

255

295

Webcast

TAX

Oct 21

WEBINAR Affordable Care Act - Key Issues For Employers, 11am-1pm

WNR187

Webinar

TAX

Oct 21

WEBINAR Affordable Care Act - Key Issues For Individuals, 8-10am

WNR188

Webinar

TAX

Oct 21

WEBINAR Fraud: The 10 Biggest Risks for 2013 Engagements, 7-9am

WNR189

Webinar

A&A

Oct 22

WEBCAST EVENING Free Cash Flow - The Key to Shareholder Value, 2-9pm

SWEBA047

195

225

Webcast

Oct 22

WEBCAST LLCs and Partnerships: Review of Selected Topics (25% California Content), 8:30am-4:30pm

WEBC082

255

295

Webcast

TAX

Oct 23

WEBCAST Compilation & Review Update and Advanced Considerations, 5:30am2:30pm

WEBA246

190

220

Webcast

A&A

Oct 23

WEBCAST Preparing for a CFO Role, 2-3pm

WEBA247

Webcast

Oct 23

WEBCAST Federal Tax Update: Individuals (Form 1040), 8:30am-4:30pm

WEBC083

255

295

Webcast

TAX

Oct 23

WEBINAR Ex-Con Shares Techniques on How to Detect and Prevent Fraud - Part 1, 8-10am

WNR190

Webinar

A&A

Oct 23

WEBINAR Ex-Con Shares Techniques on How to Detect and Prevent Fraud - Part 2, 11am-1pm

WNR191

Webinar

A&A

Oct 24

WEBA248

109

Webcast

6 WEBCAST Would I Work for Me? (Becoming the Kind of Boss People Want to Work For), 9-11am

WashingtonCPA Fall 2013

Networking Event | S Season Ticket and Coupons N/A

www.wscpa.org

Education and events Fees

Date

CPE Credits

# Oct 24

Course

Type

WEBCAST Creating Competitive Advantage: Developing a Roadmap for Sustainable Performance, 10am-12pm

Code

For more details, search by code at www.wscpa.org/cpe

WEBA249

WSCPA NonAICPA Member Member Member Discount Fee Fee

109

Facility

Subject

Webcast

Oct 24

WEBCAST EVENING Recognizing Sham Transactions, 6-8pm

SWEBA048

109

Webcast

Oct 24

WEBCAST Federal Tax Update: C & S Corporations, Partnerships & LLCs (Forms 1120, 1120S & 1065), 8:30am-4:30pm

WEBC084

255

295

Webcast

TAX

Oct 25

WEBCAST FIN 48: Accounting for Uncertain Tax Positions (ASC Topic 740.10), 8:30am-4:30pm

WEBC085

255

295

Webcast

A&A

Oct 25

WEBINAR How to Build the Best Spreadsheets with Excel, 8-10am

WNR193

Webinar

TEC

Oct 25

Oct 26

Y Y

WEBINAR Excel - Improving the Presentation of Your Spreadsheets, 11am-1pm

WNR194

Webinar

TEC

WEBCAST SATURDAY Washington CPA Ethics and New Developments (A WA Requirement), 8-11:30am

SWEBA024

164

194

Webcast

Ethics

WEBCAST SATURDAY Washington State Sales Tax and New Developments, 12-4pm

SWEBA023

129

159

Webcast

TAX

WEBCAST SATURDAY A133 Audits - 2013 How I Can Do It Better, 9am-1pm

SWEBA014

129

159

Webcast

GNP

Oct 26

WEBCAST SATURDAY HUD Audits in 2013, 9am-1pm

SWEBA016

129

159

Webcast

GNP

Oct 28

WEBCAST Marketing Management for CFOs and Other Financial Managers, 11am-1pm

WEBA143

109

Webcast

Oct 28

WEBCAST Internal Control:Your Number One Defense Against Errors and Fraud, 8:30am-4:30pm

WEBC086

255

295

Webcast

A&A

Oct 28

WEBCAST FASB and AICPA Update: Practical Guidance, 8:30am-4:30pm

WEBC087

255

295

Webcast

A&A

Oct 28

WEBINAR 10 Steps to a Digital Office in the Cloud, 10am-12pm

WNR195

Webinar

TEC

Oct 28

WEBINAR Windows 8 - Should I Go or Should I Wait? 11am-1pm

WNR196

Webinar

TEC

Oct 29

WEBA112

Webcast

Oct 29

WEBC088

255

295

Webcast

A&A

6 WEBCAST Give Your Elevator Speech a Lift, 11am-12pm WEBCAST Tax Practitioner's Guide to Accounting and Reporting Issues, 8:30am4:30pm

Oct 29

WEBINAR Cloud Computing: Taking Your IT Strategy to the Next Level, 7-9am

WNR197

Webinar

TEC

Oct 29

WEBINAR Microsoft Office 2013 and Office 365 - What's New? 10am-12pm

WNR198

Webinar

TEC

Oct 29

WEBINAR S Corporations: Financial Accounting - Part I, 8-10am

WNR199

Webinar

A&A

Oct 29

WEBINAR S Corporations: Financial Accounting - Part 2, 11am-1pm

WNR200

Webinar

A&A

Oct 30

WEBCAST 2013 Partnerships and LLCs Update, 7am-3pm

WEBA047

195

225

Webcast

TAX

Oct 30

WEBA185

Webcast

Oct 30

WEBCAST Balanced Scorecard Module I: Overview, 6-10am

WEBA250

129

159

Webcast

Oct 30

WEBCAST ESOPs: Uses, Strategies, Benefits and Pitfalls (25% California Content), 8:30am-4:30pm

WEBC089

255

295

Webcast

6 WEBCAST Punctuation That Counts: Catch Your Mistakes Before Your Readers Do!, 11am-12pm

Oct 30

WEBINAR iPad - Review of Top Apps for Business Professionals, 10am-12pm

WNR201

Webinar

TEC

Oct 31

WEBCAST Accounting Scams and Scandals: 2013 "Red Flags" Update, 6:30-8:30am

WEBA251

109

Webcast

A&A

Oct 31

WEBCAST Rolling Forecasts Replace Budget, 10am-2pm

WEBA252

129

159

Webcast

Oct 31

WEBCAST EVENING Taking Your Small Business Paperless, 4-8pm

SWEBA049

129

159

Webcast

Oct 31

WEBCAST EVENING Managing Electronically Stored Information Securely, 8pm12am

SWEBA050

129

159

Webcast

TEC

Oct 31

WEBINAR Using the iPad and the Cloud to Manage Your Documents on the Go, 7-9am

WNR203

Webinar

TEC

Oct 31

WEBINAR Know Your Costs: Double Your Profits, 8-10am

WNR204

Webinar

ç Nov 1

WEBCAST Annual Compilation Update - A Seminar Presentation Designed for Smaller Firms, 11am-3pm

WEBA253

129

159

Webcast

A&A

Nov 1

WEBCAST Auditing of Employee Benefit Plans: Mastering the Fundamentals, 8:30am-4:30pm

WEBC090

255

295

Webcast

A&A

Nov 1

WEBCAST Top 10 Things Financial Planners Need to Know About Estate Planning, 8:30am-4:30pm

WEBC092

255

295

Webcast

TAX

Nov 1

WEBCAST Opportunities and Methodologies for Running a Successful Litigation Services Practice, 8:30am-4:30pm

WEBC091

255

295

Webcast

Nov 1

WEBINAR Fraud and Abuse in Government Entities, 8-10am

WNR205

Webinar

A&A

Nov 1

WEBINAR Fraud and Abuse in Nonprofits, 11am-1pm

WNR206

Webinar

A&A

ç Nov 2

WEBCAST SATURDAY Internal Controls for Business - Preventing Fraud and Loss, 7am-3pm

SWEBA051

195

225

Webcast

A&A

www.wscpa.org

Networking Event | S Season Ticket and Coupons N/A

WashingtonCPA Fall 2013

Education and events

Fees

Date

CPE Credits

Course

Type

Code

For more details, search by code at www.wscpa.org/cpe

WSCPA NonAICPA Member Member Member Discount Fee Fee

Facility

Subject

Nov 2

WEBCAST SATURDAY Understanding When To Take Social Security, 3-4pm

SWEBA052

Webcast

PFP

Nov 4

WEBCAST Technology Update for Industry, 12-4pm

WEBA254

129

159

Webcast

TEC

Nov 4

WEBCAST Preparing Complex 1040s, Calculating NOLs, 8:30am-4:30pm

WEBC093

255

295

Webcast

TAX

Nov 4

WEBINAR Creating Better Budgets: Plan for the Unknown, 8-10am

WNR207

Webinar

A&A

Nov 4

WEBINAR Strategies to Avoid the Top 10 Legal Mistakes Companies Make, 11am1pm

WNR208

Webinar

Nov 5

SWEBA053

129

159

Webcast

6 WEBCAST EVENING Achieving Balance in Work and Life, 6-10pm

Nov 5

WEBCAST Pension and Profit-Sharing Plan Strategies, 8:30am-4:30pm

WEBC094

255

295

Webcast

PFP

Nov 5

WEBCAST Introduction to International Taxation, 8:30am-4:30pm

WEBC095

255

295

Webcast

TAX

Nov 5

WEBINAR MS PowerPoint - Creating Professional Presentations to Engage Your Audience, 7-9am

WNR209

Webinar

TEC

Nov 5

WEBINAR MS PowerPoint - Advanced Techniques for Better Presentations, 10am-12pm

WNR210

Webinar

TEC

ç Nov 5

WEBINAR Grant Writing for Nonprofits: What You Need to Know, 11am-1pm

WNR211

Webinar

GNP

Nov 6

WEBCAST Partnership and LLC Taxation: Advanced Issues, Including Transfers of Interests and Liquidations, 8:30am-4:30pm

WEBC096

255

295

Webcast

TAX

Nov 6

WEBINAR The Digital Office - Scanning Document Management & Workflow Solutions, 11am-1pm

WNR212

Webinar

TEC

Nov 7

WEBCAST Strategies for Tax Dispute Resolution, 8:30am-4:30pm

WEBC098

255

295

Webcast

TAX

Nov 7

WEBCAST S Corporation Preparation, Basis Calculations and Distributions: Form 1120S Schedule K & K1 Analysis, 8:30am-4:30pm

WEBC097

255

295

Webcast

TAX

ç Nov 7

WEBINAR The Digital Office - Cloud Based Accounting Systems, 8-10am

WNR213

Webinar

TEC

Nov 7

WEBINAR Tips, Tricks & Techniques for Managing Your Outlook E-mail, 11am-1pm

WNR214

Webinar

TEC

Nov 8

WEBCAST Accounting Scams and Scandals: 2013 "Nondisclosure Exposure" Update, 12:30-2:30pm

WEBA255

109

Webcast

A&A

Nov 8

WEBCAST Partnership Preparation, Basis Calculations and Distributions: Form 1065 Schedule K & K1 Analysis, 8:30am-4:30pm

WEBC099

255

295

Webcast

TAX

Nov 8

WEBINAR New AICPA Private Company Financial Reporting Standards, 11am1pm

WNR215

Webinar

A&A

Nov 8

WEBINAR Repairs to Tangible Property - Capitalize or Expense?, 8-10am

WNR216

Webinar

TAX

Nov 9

WEBCAST SATURDAY Revenue Budgeting - How to Get Your Revenue Forecast RIGHT the First Time! - 4 of 6 of the Budgeting Series, 10am-1pm

SWEBA010

129

Webcast

Nov 9

WEBCAST SATURDAY Expense Budgeting How to Replace Fat with Reality in Your Expense Budget! - 5 of 6 of the Budgeting Series, 1-3pm

SWEBA011

109

Webcast

Nov 9

WEBCAST SATURDAY Capital Budgeting - How to Make Every Capital Dollar Provide Value! - 6 of 6 of the Budgeting Series, 1-3pm

SWEBA012

109

Webcast

ç Nov 9

WEBCAST SATURDAY Doing Business with the IRS Part 7: Trust Fund Recovery Penalty, 9-11am

SWEBA054

109

Webcast

TAX

Nov 11

WEBCAST Lean Accounting, 2-4pm

WEBA256

109

Webcast

A&A

Nov 11

WEBCAST Living Trust Administration Workshop (25% California Content), 8:30am-4:30pm

WEBC101

255

295

Webcast

TAX

Nov 11

WEBCAST Mutual Fund Investing: A Working Knowledge, 8:30am-4:30pm

WEBC102

255

295

Webcast

Nov 12

WEBINAR The Digital Office - Securing Your Information, 8-10am

WNR217

Webinar

TEC

Nov 12

WEBINAR Word - Advanced Tips Tricks & Techniques, 11am-1pm

WNR218

Webinar

TEC

Nov 12

WEBINAR Financial Accounting for LLCs and Partnerships - Part I, 9-11am

WNR219

Webinar

A&A

Nov 12

WEBINAR Financial Accounting for LLCs and Partnerships - Part 2, 12-2pm

WNR220

Webinar

A&A

Nov 13

WEBCAST 2013 Basic Tax Considerations for Individuals, 7am-3pm

WEBA048

195

225

Webcast

TAX

Nov 14

WEBCAST 2013 Partnerships and LLCs Update, 7am-3pm

WEBA049

195

225

Webcast

TAX

Nov 14-15

16 

WEBCAST Pacific Tax Institute, 8am-4:30pm

WEBPTI

600

675

Webcast

TAX

Nov 14

WEBCAST Private Foundations Tax Primer, 8:30am-4:30pm

WEBC104

255

295

Webcast

TAX

Nov 14

WEBCAST Practical Guide to Accounting Fraud, 8:30am-4:30pm

WEBC103

255

295

Webcast

A&A

Nov 14

WEBINAR Excel - How to Maximize the Accuracy of Your Trial Balance and Financial Statements Part 1, 8-10am

WNR221

Webinar

TEC

Nov 14

WEBINAR Excel - How to Maximize the Accuracy of Your Trial Balance and Financial Statements Part 2, 11am-1pm

WNR222

Webinar

TEC

WashingtonCPA Fall 2013

Networking Event | S Season Ticket and Coupons N/A

www.wscpa.org

Education and events Fees

Date

CPE Credits

Course

Type

Code

For more details, search by code at www.wscpa.org/cpe

WSCPA NonAICPA Member Member Member Discount Fee Fee

Facility

Subject

Nov 15

WEBINAR Detecting and Preventing Internal Fraud, Theft and Abuse, 8-10am

WNR223

Webinar

A&A

Nov 15

WEBINAR Fraud Detection and Prevention in Small and Mid-Sized Businesses, 11am-1pm

WNR224

Webinar

A&A

Nov 16

WEBCAST SATURDAY Successful Wall Street Investing in 7 Steps, 7am-3pm

SWEBA055

195

225

Webcast

Nov 16

WEBCAST SATURDAY The CFO's Role in Banking and Financing, 12-2pm

SWEBA056

109

Webcast

Nov 16

WEBCAST SATURDAY The CFO's Role in Operational Control, 2-4pm

SWEBA057

109

Webcast

Nov 18

WEBCAST Preventing Legal Issues On Construction Projects, 12-2pm

WEBA262

109

Webcast

Nov 18

WEBCAST The Top 10 Legal Mistakes Companies Make And How To Avoid Them, 2-4pm

WEBA257

109

Webcast

ç Nov 18

WEBCAST Compilations and Reviews: Risks, Procedures and Fraud, 8:30am4:30pm

WEBC105

255

295

Webcast

A&A

Nov 18

WEBINAR Using the iPad and the Cloud to Manage Your Documents on the Go, 7-9am

WNR225

Webinar

TEC

ç Nov 18

WEBINAR The CFO's Role in Compensation and Incentive Plans, 11am-1pm

WNR226

Webinar

ç Nov 18

WEBINAR Communicating Financial Information to Non-Accountants, 8-10am

WNR227

Webinar

Nov 19

WEBCAST EVENING Finance Basics for Accounting Professionals, 2-6pm

SWEBA058

129

159

Webcast

Nov 19

WEBCAST Small Business Internal Control, Security and Fraud Prevention and Detection, 8:30am-4:30pm

WEBC106

255

295

Webcast

A&A

Nov 19

WEBCAST Business Succession Planning and Exit Strategies: Understanding and Planning for Business Ownership Change, 8:30am-4:30pm

WEBC107

255

295

Webcast

Nov 19

WEBINAR Cloud Computing: Taking Your IT Strategy to the Next Level, 12-2pm

WNR228

Webinar

TEC

Nov 19

WEBINAR The Role of E-mail and E-Messages in Modern Contracts: Get the Terms You Want, 11am-1pm

WNR229

Webinar

Nov 20

WEBCAST 2013 Tax Planning Issues for the Small Business Owner, 7am-3pm

WEBA050

195

225

Webcast

TAX

Nov 20

WEBA186

Webcast

Nov 20

WEBA258

195

245

Webcast

6 WEBCAST Punctuation That Counts: Catch Your Mistakes Before Your Readers Do!, 11am-12pm WEBCAST Best Practices for Industry - Creating and Managing Electronic Documents and Information, 7am-3pm

Nov 20

WEBCAST New GASB Pension Standards: Implementation Issues, 11am-1pm

WEBA259

109

Webcast

A&A

Nov 20

DATE CHANGE WEBCAST Business & Wealth Succession Planning in 2013 (25% California Content), 8:30am-4:30pm

WEBC035

255

295

Webcast

TAX

WEBA113

Webcast

WEBA260

129

Webcast

Nov 21

6 WEBCAST Give Your Elevator Speech a Lift, 11am-12pm WEBCAST Balanced Scorecard Module II: Show How Balanced Scorecard Support Strategy, 11am-2pm

Nov 21

WEBCAST EVENING How Good Companies Become Great, 4-6pm

SWEBA059

109

Webcast

Nov 21

WEBCAST EVENING Creating Competitive Advantage: Developing a Roadmap, 6-8pm

SWEBA060

109

Webcast

Nov 21-22

16  WEBCAST Not-for-Profit Conference, 8am-4:30pm Y 6

WEBNFPC

475

Webcast

A&A

Nov 21

WEBC109

255

295

Webcast

GNP

WEBCAST Advanced Auditing of HUD-Assisted Projects: Common Pitfalls, 8:30am-4:30pm

Nov 21

WEBCAST Audit Standards Update: Clarity Standards Overview, 8:30am-4:30pm

WEBC108

255

295

Webcast

A&A

Nov 21

WEBINAR Know Your Costs: Double Your Profits, 11am-1pm

WNR230

Webinar

Nov 22

WEBCAST Risk Analysis and Management, 12-2pm

WEBA261

109

Webcast

A&A

Nov 22

WEBCAST S Corporations: A Complete Guide to Planning and Compliance, 8:30am-4:30pm

WEBC111

255

295

Webcast

TAX

Nov 22

WEBCAST Audits of 401(k) Plans, 8:30am-4:30pm

WEBC110

255

295

Webcast

A&A

Nov 22

WEBINAR Closing Best Practices - Shortening Month-End, 8-10am

WNR231

Webinar

A&A

Nov 22

WEBINAR Financial Analysis in a Metrics Driven World, 11am-1pm

WNR232

Webinar

A&A

Nov 25

WEBCAST Washington CPA Ethics and New Developments (A WA Requirement), 8-11:30am

WEBA051

164

194

Webcast

Ethics

Nov 25

WEBCAST Washington State Sales Tax and New Developments, 12-3:30pm

WEBA052

129

159

Webcast

TAX

Nov 25

WEBCAST Marketing Management for CFOs and Other Financial Managers, 11am-1pm

WEBA144

109

Webcast

ç Nov 25

WEBCAST Implementing the Right Business Technology - Where to Best Spend Your Money, 7am-3pm

WEBA263

195

225

Webcast

TEC

www.wscpa.org

Networking Event | S Season Ticket and Coupons N/A

WashingtonCPA Fall 2013

Education and events

Fees

Date

CPE Credits

Course

Type

Code

For more details, search by code at www.wscpa.org/cpe

WSCPA NonAICPA Member Member Member Discount Fee Fee

Facility

Subject

Nov 25

WEBINAR Excel - Building Spreadsheets to Analyze Your Data, 7-9am

WNR233

Webinar

TEC

Nov 25

WEBINAR Taking Excel to the Next Level for Experienced Users, 10am-12pm

WNR234

Webinar

TEC

Nov 25

WEBINAR The Financial Manager's Role in Risk Analysis and Management, 11am1pm

WNR235

Webinar

Nov 26

WEBA264

109

Webcast

WEBA265

129

159

Webcast

TEC

WEBA266

109

Webcast

Nov 26

ç Nov 26

6 WEBCAST Would I Work for Me? (Becoming the Kind of Boss People Want to Work For), 7-9am WEBCAST What is Cloud Computing? 12-4pm 6 WEBCAST Enhance Your Career Through Personal Branding and Effective Networking, 1-3pm

ç Nov 26

WEBCAST EVENING Data Backup and Recovery - Where is Your Data?, 2-6pm

SWEBA061

129

159

Webcast

TEC

Nov 26

WEBCAST EVENING Accounting in the Cloud vs. On Premise, What You Need to Know, 6-10pm

SWEBA062

129

159

Webcast

TEC

Nov 26

WEBINAR How to Build the Best Spreadsheets with Excel, 7-9am

WNR236

Webinar

TEC

Nov 26

WEBINAR Excel - Improving the Presentation of Your Spreadsheets, 10am-12pm

WNR237

Webinar

TEC

ç Nov 26

WEBINAR 2013 Tax Update for Business, 11am-1pm

WNR238

Webinar

TAX

Nov 26

WEBINAR 2013 Tax Update for Individuals, 8-10am

WNR239

Webinar

TAX

Nov 27

WEBCAST 2013 Basic Tax Considerations for Individuals, 7am-3pm

WEBA053

195

225

Webcast

TAX

Nov 27

WEBA267

195

245

Webcast

6 WEBCAST Shortcuts to Success: The 14 Best Tools for Personal and Professional Growth, 8am-4pm

Nov 27

WEBINAR iPad - Review of Top Apps for Business Professionals, 8-10am

WNR240

Webinar

TEC

Nov 27

WEBINAR Microsoft Office 2013 and Office 365 - What's New? 11am-1pm

WNR241

Webinar

TEC

Dec 2

WEBCAST Fundamentals of the Corporate Income Tax Return, 8:30am-4pm

WEBC151

255

295

Webcast

TAX

Dec 2

WEBCAST Disclosure: The Key to Financial Statements, 8:30am-4pm

WEBC150

255

295

Webcast

A&A

Dec 2

WEBINAR Client Portals - Gateway to the Future, 10am-12pm

WNR242

Webinar

TEC

Dec 2

WEBINAR Windows 8 - Should I Go or Should I Wait? 7-9am

WNR243

Webinar

TEC

ç Dec 3

WEBCAST EVENING Internal Controls, Corporate Governance & Risk Management, 2-10pm

SWEBA063

195

225

Webcast

A&A

Dec 3

WEBCAST Deal Structure for Mergers and Acquisitions Transactions, 8:30am4:30pm

WEBC153

255

295

Webcast

TAX

Dec 3

Dec 4

WEBCAST Leases: Past, Present and Future, 8:30am-4:30pm 6 WEBINAR Critical Thinking Skills For Finance and Accounting Professionals, 11am-1pm WEBCAST 2013 Tax Planning Issues for the Small Business Owner, 7am-3pm

WEBC152

255

295

Webcast

A&A

WNR244

Webinar

WEBA054

195

225

Webcast

TAX

ç Dec 4

WEBCAST Critical Business Law Issues Every Accountant Should Know, 7am-3pm

WEBA268

195

245

Webcast

Dec 4

WEBINAR 10 Steps to a Digital Office in the Cloud, 10am-12pm

WNR247

Webinar

TEC

ç Dec 4

WEBINAR The Digital Office - Cloud Based Accounting Systems, 7-9am

WNR248

Webinar

TEC

Dec 4

WEBINAR Creating Better Budgets: Plan for the Unknown, 11am-1pm

WNR249

Webinar

A&A

Dec 4

WEBINAR Strategies to Avoid the Top 10 Legal Mistakes Companies Make, 8-10am

WNR250

Webinar

Dec 5

WEBCAST Budget Basics Myths of Budgeting and How to Overcome Them - 1of 6 of the Budgeting Series, 8-11am

WEBA075

129

Webcast

Dec 5

WEBCAST Budget Priorities: How Reality-Based Budgeting Really Works - 2 of 6 of the Budgeting Series, 11am-2pm

WEBA081

129

Webcast

Dec 5

WEBCAST Budget Accountability - How to Ensure Accountability Gets Embedded in Your Budget Process! - 3 of 6 of the Budgeting Series, 2-5pm

WEBA087

129

Webcast

Dec 5

WEBCAST Fair Value: Explained and Updated, 8:30am-4:30pm

WEBC154

255

295

Webcast

A&A

Dec 5

WEBINAR Tips & Tricks for Managing Your Outlook Calendar, Contacts and Tasks, 11am-1pm

WNR252

Webinar

TEC

Dec 5

WEBINAR Tips, Tricks & Techniques for Managing Your Outlook E-mail, 8-10am

WNR251

Webinar

TEC

Dec 6

WEBCAST Revenue Budgeting How to Get Your Revenue Forecast RIGHT the First Time! - 4 of 6 of the Budgeting Series, 8-11am

WEBA093

129

Webcast

Dec 6

WEBCAST Expense Budgeting How to Replace Fat with Reality in Your Expense Budget! - 5 of 6 of the Budgeting Series, 11am-1pm

WEBA099

109

Webcast

Dec 6

WEBCAST Capital Budgeting How to Make Every Capital Dollar Provide Value! 6 of 6 of the Budgeting Series, 1-3pm

WEBA105

109

Webcast

WEBINAR The Digital Office - The CPA Technology Toolkit, 7-9am

WNR253

Webinar

TEC

Dec 6

WashingtonCPA Fall 2013

Networking Event | S Season Ticket and Coupons N/A

www.wscpa.org

Education and events Fees

Date

CPE Credits

Course

Type

Code

For more details, search by code at www.wscpa.org/cpe

WSCPA NonAICPA Member Member Member Discount Fee Fee

Facility

Subject

Dec 6

WEBINAR The Digital Office - Scanning Document Management & Workflow Solutions, 10am-12pm

WNR254

Webinar

TEC

Dec 9

WEBCAST Fundamentals of 1031 Exchanges (25% CA Content), 8:30am-4pm

WEBC156

255

295

Webcast

TAX

Dec 9

WEBCAST Tax Practitioner's Guide to Accounting and Reporting Issues, 8:30am4:30pm

WEBC155

255

295

Webcast

A&A

Dec 10

WEBCAST The CFO's Role in Banking and Financing, 12-2pm

WEBA163

109

Webcast

Dec 10

WEBCAST A133 Audits - 2013 What I Need To Know, 8am-12pm

WEBA119

129

159

Webcast

GNP

Dec 10

WEBCAST A133 Audits - 2013 How I Can Do It Better, 12-4pm

WEBA125

129

159

Webcast

GNP

Dec 10

WEBCAST The CFO's Role in Operational Control, 2-4pm

WEBA166

109

Webcast

Dec 10

WEBCAST Doing Business with the IRS Part 1: Organization of the IRS, the FOIA and Privacy Act, and Confidentiality and Disclosure of Tax Returns, 9-11am

WEBA269

109

Webcast

TAX

Dec 10

WEBA270

129

159

Webcast

Dec 10

6 WEBCAST Personal Leadership Skills, 11am-3pm WEBCAST Retirement Distributions: Planning Options, 8:30am-4:30pm

WEBC159

255

295

Webcast

PFP

Dec 10

WEBCAST Not-for-Profit Organizations: Accounting and Auditing Principles, 8:30am-4:30pm

WEBC157

255

295

Webcast

A&A

Dec 10

WEBINAR The Medicare Tax on Net Investment Income, 11am-1pm

WNR255

Webinar

TAX

Dec 10

WEBINAR New AICPA Private Company Financial Reporting Standards, 8-10am

WNR256

Webinar

A&A

Dec 11

WEBCAST 2013 Annual Tax Update, 7am-3pm

WEBA055

195

225

Webcast

TAX

Dec 11

WEBCAST Yellow Book Audits in 2013, 8am-12pm

WEBA131

129

159

Webcast

GNP

Dec 11

WEBCAST HUD Audits in 2013, 12-4pm

WEBA137

129

159

Webcast

GNP

Dec 11

WEBCAST Construction Contractors: Special Tax and Accounting Considerations, 8:30am-4:30pm

WEBC160

255

295

Webcast

TAX

Dec 11

WEBCAST Strategies for Tax Dispute Resolution, 8:30am-4:30pm

WEBC161

255

295

Webcast

TAX

Dec 11

WEBINAR Ex-Con Shares Techniques on How to Detect and Prevent Fraud - Part 1, 8-10am

WNR257

Webinar

A&A

Dec 11

WEBINAR Ex-Con Shares Techniques on How to Detect and Prevent Fraud - Part 2, 11am-1pm

WNR258

Webinar

A&A

Dec 12

WEBCAST Risk Analysis and Management, 8-10am

WEBA271

109

Webcast

A&A

Dec 12

WEBINAR Tax Depreciation: Review & Update, 12-2pm

WNR245

Webinar

TAX

Dec 12

WEBINAR Travel & Entertainment Expenses: Review & Update, 12-2pm

WNR246

Webinar

TAX

ç Dec 12

WEBCAST EVENING Critical Business Law Issues Every Accountant Should Know, 2-10pm

SWEBA064

195

245

Webcast

ç Dec 12

WEBCAST EVENING Internal Controls for Business - Preventing Fraud and, 3-11pm

SWEBA065

195

225

Webcast

A&A

Dec 12

WEBCAST Social Security Benefits: Advising Clients, 8:30am-4:30pm

WEBC162

255

295

Webcast

PFP

WEBINAR Fraud and Abuse in Government Entities, 8-10am

WNR259

Webinar

A&A

WEBINAR Fraud and Abuse in Nonprofits, 11am-1pm

WNR260

Webinar

A&A

WEBCAST EVENING Understanding When To Take Social Security, 8-9pm

SWEBA066

Webcast

PFP

ç Dec 13

WEBCAST Health Care Industry Accounting & Regulatory Update, 7am-3pm

WEBA056

195

225

Webcast

Dec 13

WEBCAST Doing Business with the IRS Part 4: How to Handle the IRS Audit, 9-11am

WEBA272

109

Webcast

TAX

Dec 13

WEBCAST Excel and Access: Tools of the Trade for Business, 8:30am-4pm

WEBC164

255

295

Webcast

TEC

Dec 13

WEBCAST Business Valuation: A Review of the Essentials, 8:30am-4pm

WEBC158

255

295

Webcast

Dec 13

WEBCAST Overcoming the Auditing Challenges of Defined Contribution Plans, 8:30am-4pm

WEBC163

255

295

Webcast

A&A

Dec 13

WEBINAR Fraud: The 10 Biggest Risks for 2013 Engagements, 8-10am

WNR261

Webinar

A&A

Dec 13

WEBINAR Fraud Detection and Prevention in Small and Mid-Sized Businesses, 11am-1pm

WNR262

Webinar

A&A

Dec 14

SWEBA067

129

159

Webcast

6 WEBCAST SATURDAY Triple Your Memory and Confidence, and Halve Your Stress, 11am-3pm

www.wscpa.org

Networking Event | S Season Ticket and Coupons N/A

WashingtonCPA Fall 2013

Registration

Register online with credit card at www.wscpa.org/CPE/catalog or: • Mail form with check to WSCPA, 902 140th Ave NE, Bellevue, WA 98005-3480 • Call (425) 644-4800 or (800) 272-8273 (toll-free in Washington) Questions? E-mail cpe@wscpa.org or call the WSCPA.

Code

Title

Date

City

Fee1

To pay by credit card, please visit www.wscpa.org/cpe/catalog or call (425) 644-4800.

WSCPA CPE policies apply to all programs in the CPE Digest. Review the CPE policies at www.wscpa.org.

WashingtonCPA Fall 2013

www.wscpa.org

classified ads

Detailed advertising information is available online at www.wscpa.org. Ads are $1 per word with a minimum fee of $50. Active e-mail and web site addresses are included. Classified Ads are placed on the website for 60 days when received and in the next magazine when received by the deadline, December 1 for the Winter 2013 issue. Positions available ads are no longer available in the magazine. To post a job listing, visit the Career Center at www.wscpa.org.Want to list a rental or vacation property? Use the Miscellaneous category. Contact Janet White at (425) 586-1126, (800) 272-8273, Ext. 1126, or classifieds@wscpa.org for additional information. All ads must be pre-paid. Find classified ads at www.wscpa.org under Newsroom.

OFFICE SPACE Available for Lease in East Bellevue: Corner Office in Professional Suite. Second floor 130 square foot office in congenial suite in 520 corridor. Conference room, reception area, free parking, ample natural lighting, operable windows, A/C, coffee service, copier, fax, shower, Comcast high-speed Internet. Close to bike trail. $1275/ month.Contact (425) 462-7070 ext.1 or theo@vjbk.com Available for Lease: 1st floor of office building. 1,087 square feet accommodates 6-8 desks plus reception area. Recent renovation includes dedicated kitchen, ADA bathroom, large windows, air conditioning and storage. Lower Queen Anne close to Seattle Center with nearby parking and private entrance. $1.32/ft inclusive. View on-line at LindleyPropertiesLLC.com or contact mace@ westlakeassociates.com or call (206)334-6163. Office Space for Lease or Sale, North Seattle Location.A professional building with high visibility,1500 square feet, 5 offices + 1 file room/office, 2 bathrooms, parking, A/C, and signage. Office space has been a CPA office for over 30 years. Please call Bob at (425) 941-5224.

MERGERS & SALES Everett/Bellevue CPA and Wealth Management firm seeking owners wishing to transition into retirement. We have successfully merged with other local owners allowing them to take care of their long-term client base, work part-time during the transition, offer a wider array of services to help their clients and provide retirement income to the owner. Our client base is as broad as the services we offer but we specialize in individuals and small business. Please contact the owner, Brian Evans at (425) 252-6909 or email to brian@bauerevans.com.Please visit www.bauerevans.com and www.bondstreetwealth.com. Considering SellingYour Practice? Consider all your options.We do the work. Confidential.We have buyers actively seeking practices. Call Mark Hause at (877) 3457722 or visit our website at www.accountingpracticesales. comAccounting Practice Sales.We make dreams happen! IBA Sells Privately Held Companies. Do you represent a client who is ready to retire or has taken a company as far as they want to or can? IBA is the Pacific Northwest’s oldest business brokerage (M&A) firm.We are professional negotiators with over 4000 completed transactions. Please contact us if we can be of assistance at (800) 218-4422 or www.ibainc.com Snohomish County CPA looking to purchase a small, accounting/tax practice in S. Snohomish / N. King Co. area. $75,000 - $175,000.Willing to work with seller on a desired transition plan. Please respond by e-mail to larry@staveassociates.com.

PRACTICES FOR SALE Contact Mark Hause at Accounting Practice Sales by e-mail at MARKHAUSE@CONTACTAPS.COM or call (877) 345-7722 for more information on the following practices: East King County-Snoqualmie Valley Area Write-Up Practice: This tax and write-up practice is looking to sell the write-up portion of the practice. The firm’s write-up business has really grown n the last few years and is approx. 50% of total revenues of the firm. The services rendered are the traditional services of profit and loss statements,bank reconciliations,sales tax,payroll,small business setup,accounting support, and consulting related thereto. The Seller is downsizing the firm to handle only the income tax and is seeking a buyer for the write-up segment of the practice. The buyer will own a thriving business that bills out write-up services at hourly and flat rates that are excellent plus the opportunity to own the real estate. Kirkland CPA Practice for Sale: This CPA firm is a tax practice but also has a fair amount of writeup services to balance out the year. The revenue mix is 82% tax, 17% write-up and a small amount of consulting. The amount of the write-up services allows for the effective use of an assistant who can lend a hand with tax preparation as well. The clients are accustomed to very personal service and most have been with the firm for a number of years. This practice is an ideal solution for any number of tax professionals looking for a solid practice that will provide challenge and opportunity. CentralWashington-Grant County CPA Practice for Sale: This CPA firm has been existence for a number of years and is ready for new leadership as the current owner wants to retire. The firm is a tax practice but has a good amount of write-up services the balances out cash flow in other parts of the year. In addition, a well-qualified and loyal staff is in place. With a solid gold reputation for years of continuous service and a building available for transition, this firm is a practice that is very desirable. Island County Area Tax Practice for Sale: This practice is a straight up tax practice with a broad spectrum of clients. The firm is full of long time clients who are serviced by the owner and a staff of over 100 years of experience. The revenues come from income tax 82%, write-up 16%, and misc. services of 2%. The fee averages are good with the individual returns averaging $350 and business returns $824. The practice is primed for a new owner that wants to start a practice or an expansion focused buyer. The timing could not be better for this opportunity. Poulsbo CPATax Practice for Sale: This solid CPA practice with an excellent client base is for sale. The firm is full of satisfied clients who refer approx.95% of all new clients. The firm with this kind of reputation works extremely hard at providing excellent service to a client base with a health mix of all types of clients. As with most firms,the practice mix consists of mostly individual returns but does have business returns as well. For buyers looking for an established practice or firms seeking markets for new growth this firm in one you should inquire about. SeattleTax andWrite-Up Practice for Sale-This

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accounting firm for sale is a tax and write-up practice that was formed 37 years ago. The mix of professional services is approx. 68% income tax and 32% write-up with excellent per return fees. The firm has always stressed excellent service to its clients. The result is a practice filled with long term clients who refer excellent new clients. The firm’s clients interact with the practice generally by phone, mail and electronic media making this practice one with very little walk in business. In recent years, the practice has been pruned to allow the owner to transition to retirement. What remains are clients who are the envy of many firms. This practice is an ideal purchase opportunity for any professional looking for financial reward and professional challenge. South East Washington (Whitman/Asotin County) CPA Practice for Sale: This wellestablished CPA practice with an emphasis on tax preparation is for sale. The firm provides hands on personalized customer service that has created a client base that is extremely loyal and includes multiple generations of clients. In addition, the firm possesses many opportunities for growth coupled with a bottom line that is well above average. The result is a practice that many look for but seldom find when pursuing opportunities to own a firm or to expand a firm’s service footprint. This firm is at a price point that any serious buyer should move on this opportunity. Grays Harbor County Area Enrolled Agent Practice for Sale: This enrolled agent practice is primed for growth with a good mix of income tax and write-up professional services. The firm has excellent visibility due to being located on a high traffic count street and has been in the area for a number of years. In addition, the Seller offers the ability to retain the existing location which will make the transition of clients easy. This firm is a great opportunity for any number of buyers from a business minded accountant, to a firm looking to grow a book of business or offer an up and coming young associate ownership. North Olympic Peninsula-Clallam County CPA Practice for Sale: This firm is a tax practice that many seek but few find with a significant amount of business returns coupled with the personal income tax returns that follow. The firm has an excellent location with a high traffic count which fosters walk-in business. The perfect buyer for this practice is a financially successful CPA looking for a practice that has a solid year round income from a variety of fiscal year ends that provides a relaxed pace and good work life balance. South Puget Sound Area-CPA Practice for Sale: This CPA practice has a broad range of clients with no concentration in one area and a broad range of services that are rendered in the areas of income tax, auditing, and financial services. The firm has a history of stability that has fostered excellent client relationships that provide consistent referrals. This firm is further enhanced by an outstanding staff that has outstanding credentials making this firm unique in its ability to provide quality professional services at all service levels to all clients. The financial advisory segment of this practice makes it an obvious advantage for any firm looking to add to their suite of professional services. Any firm with designs on expanding services, looking for expertise, along with an outstanding client list has found an opportunity that is hard to beat with this firm.

WashingtonCPA Fall 2013

VOLUNTEER POSITIONS The following organizations need a CPA to serve on the board of directors and/or provide other guidance on financial matters. Learn more at www.wscpa.org (enter volunteer positions in the search box). Accounting for International Development - new Crisis Clinic of Thurston/Mason Counties Easter Seals Washington Education Across Borders Gingerâ&#x20AC;&#x2122;s Pet Rescue Girls on the Run of Puget Sound - new Health Alliance International - new Helping Link Interlake Childcare & Learning Center Macha Monkey Productions National Council of Disability Determination Directors North East Seattle Together - new Northwest School of Wooden Boatbuilding - new Open Arms Perinatal Services Pet Savers Puget Sound Bike Share Purrfect Pals - new Seattle Audubon Society Step it up Camp The Camelot Society The Mockingbird Society The Seattle Piano Institute Transitional Resources Vision Loss Connections Washington Butterfly Association Washington Poison Center - new WithinReach

WashingtonCPA Fall 2013

STATEMENT OF OWNERSHIP, MANAGEMENT,AND CIRCULATION (REQUIRED BY 39 U.S.C. 3685) 1. Publication Title:The Washington CPA 2. Publication No.: 0000-9754 3. Filing Date: 16 September 2013 4. Issue Frequency: Quarterly 5. No. of Issues Published Annually: 4 6.Annual Subscription Price: $12 7. Complete Mailing Address of Known Office of Publication: 902 140th Avenue NE, Bellevue, King, Washington 98005-3480. Contact Person: Judy Love. Telephone: 425-586-1130 8. Complete Mailing Address of Headquarters or General Business Office of Publisher: Same as #7 9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor: Publisher: Washington Society of Certified Public Accountants, Editor: Jeanette Kebede, Managing Editor: n/a,Washington Society of Certified Public Accountants, 902 140th Avenue NE, Bellevue, WA 98005-3480 10. Owner:Washington Society of Certified Public Accountants, 902 140th Avenue NE, Bellevue,WA 98005-3480 11. Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages, or Other Securities: None 12. Tax Status: n/a.13. Publication Name:The Washington CPA 14. Issue Date for Circulation Data Below: Summer 2013. 15. Extent and Nature of Circulation (Avg. No. Copies Each Issue During Preceding 12 Months,Actual No. Copies of Single Issue Published Nearest to Filing Date). a.Total No. Copies: 9,516, 9,200 b. Legitimate Paid and/or Requested Distribution: (1) Outside-County Paid/Requested Mail Subscriptions stated on Form 3541: 4,613, 4,380. (2) In-County Paid/Requested Mail Subscriptions stated on Form 3541: 4,542, 4,315. (3) Sales through Dealers and Carriers, Street Vendors, Counter Sales, and Other Non-USPS Paid Distribution: n/a, n/a. (4) Requested Copies Distributed by Other Mail Classes Through the USPS: 56, 35. c.Total Paid and/or Requested Circulation (sum of 15b(1), (2), (3), and (4)): 9,211, 8,730. d. Nonrequested Distribution (By Mail and Outside the Mail): (1) Outside County Nonrequested Copies Stated on Form 3541, 109, 208. (2) In-County Nonrequested Copies Stated on Form 3541: 125, 175. (3) Nonrequested Copies Distributed Through the USPS by Other Classes of Mail: 0, 0. (4) Nonrequested Copies Distributed Outside the Mail: 32, 53. e.Total Nonrequested Distribution: 266, 436. f.Total Distribution (Sum of 15c and e): 9,477, 9,166. g. Copies not Distributed: 39, 34. h.Total (Sum of 15f and g): 9,516, 9,200. i. Percent Paid and/ or Requested Circulation (15c divided by f times 100): 97%, 95%. 16. Publication of Statement of Ownership for a Requestor Publication is required and will be printed in the Fall 2013 issue of this publication. 17. Signature and Title of Editor, Publisher, Business Manager, or Owner: Judy Love

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Member profile

A Win-Win-Win Proposition Jim Ladd, CPA

nyone who spends even a short amount of time with Jim Ladd quickly learns about his passion for volunteer service with not-for-profit organizations. He has been on boards of over 20 organizations, including the WSCPA. While he was 2010-2011 Chair of the WSCPA Board, he also chaired the Board of Seattle Children’s Hospital. For several years he served simultaneously as treasurer of both United Way of King County and The Seattle Foundation, among other roles. Jim is also an ardent Duke University alum, serving at one time as board chair of the Duke Alumni Association. As he was growing up in Bellevue, Jim had a good volunteering role model in his father, who was very active in Rotary, Seafair, and industry organizations. “But I’ve chosen different kinds of organizations – more towards social welfare and health care. It started at Duke, and continued from early in my CPA career, when I had not-for-profit clients that I loved. One thing led to another. It’s not hard to be successful if you like what you’re doing.” Jim chose Duke University in North Carolina because he wanted to see more of the country. About that decision he says, “I had great experiences while at Duke, where I majored in economics, and I thought I might go to law school. But as an econ major I had to take accounting, had a great professor, liked it and did well. My accounting professor suggested I work for a CPA firm for three years, rather than going to law school. Even though I was accepted at law schools and MBA programs, I was eager to marry my high school sweetheart, so I took the CPA route. That professor changed my life and I’ve stayed in touch with him to this day.” Following his professor’s advice, Jim planned to work at a CPA firm for only three years. But as Deloitte continued to give him wonderful opportunities, he www.wscpa.org

“I get more than I give. I meet people with skills I will never have, who have had experiences that are very different from mine. I learn from them, which enriches and stimulates my life. At the same time, I have skills that can help them and they apprecistayed for 28 years. One of the highlights of his tenure at Deloitte was being managing partner of the Tokyo office for five years, which afforded his family some wonderful experiences. He then managed firm-wide human resources at the headquarters in New York, finally returning to Seattle to lead Deloitte’s northwest area as he finished his career in public accounting. He subsequently moved to private industry, where he helped four companies through periods of big challenges. Ladd describes himself as “semiretired” now, participating on boards and serving as executor of a complex estate. “Business is my hobby,” he says.“I want to stay involved, but not full time. I get more than I give. I meet people with skills I will never have, who have had experiences that are very different from mine. I learn from them, which enriches and stimulates my life. At the same time, I have skills that can help them and they appreciate it. And together we make our communities better. It’s a win-win-win proposition!” Jim frequently uses such words as

ate it. And together we make our communities better. It’s a win-win-win proposition!” “fortunate” and “honored” to describe his career, family and volunteer paths. Also, “lucky,” as he describes his 49-year marriage to the young woman he chose accounting over law school for. “We’re lucky, because we were only 21 and just out of college when we got married, but we have been able grow and develop together in parallel paths. We have three great children and just had our first grandchild – another sweetheart for me!” As he continues to enjoy a satisfying “semi-retirement,” he relates how a friend helped him keep track of the days of the week – “The big paper comes on Sundays.” Now, if only he has time to read it. WashingtonCPA Fall 2013

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