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2. accounting and auditing

sumnews
Volume 22 Number
2
Spring 2011
10
IRS Hiring Agents in Abusive Transactions Group
Looking to the Future of Forensic Accounting
How to Fire a Client
Your Investment in Marketing is an
Investment in the Future of Your Firm
Becoming Your Clients’ Trustee
This issue is sponsored in part by:
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sumnews
MSCPAonline.org
[email protected]
Tel: 617.556.4000 or 800.392.6145
Fax: 617.556.4126
105 Chauncy Street, 10th Floor
Boston, MA 02111
Table of Contents
2010–2011 Board of Directors
Officers
Chairman
Jeffrey D. Solomon, CPA, CVA
Levine Katz Nannis & Solomon PC
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Chairman-Elect
Stuart R. Benton, CPA
Bradford Soapworks, Inc.
Vice Chairman Finance
Merrill S. Puopolo, CPA
CBIZ Tofias & Mayer Hoffman McCann PC Tofias New England Division
Vice Chairman
Nancy R. Baldiga, CPA
College of the Holy Cross
Vice Chairman
Patrick B. Riley, CPA
Braver PC
Past Chairman
Daniel P. DeVasto, CPA
Wolf & Company PC
President / CEO
Theodore J. Flynn, CAE
Massachusetts Society of CPAs
Board Members
Kristen P. Connell, CPA
Jofran Sales, Inc.
Jeffrey E. Mead, CPA
CCR LLP
Paul E. Costantino, CPA
Costantino Richards & Rizzo LLP
Charles Metjian, Jr., CPA
Miller Wachman LLP
Paul J. Gerry, Jr., CPA
Gray Gray & Gray LLP
Robb D. Morton, CPA
Boisselle Morton & Associates LLP
Scott Levy, CPA
Grant Thornton LLP
Phillip B. Pacino, CPA
Greene Rubin Miller & Pacino
Kevin P. Martin, Jr., CPA
Kevin P. Martin & Associates PC
Kevin R. Rhodes, CPA
PlumChoice, Inc.
Carla M. McCall, CPA
Alexander Aronson Finning & Co. PC
Carolyn R. Stall, CPA
Stall Advisors LLC
MSCPA Executive Staff
Executive Vice President
Marianne Brush
Featured Articles
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10
15
18
23
25
IRS Hiring Agents in Abusive Transactions Group
Minimizing the Stress of Divorce
Looking to the Future of Forensic Accounting
How to Fire a Client
Your Investment in Marketing Is an Investment in
the Future of Your Firm
Becoming Your Clients’ Trustee
Vice President, Member Services / Peer Review
Beth Lyons, CAE
Vice President / CFO
William Townsend
Editorial Staff
Marketing Specialist
Julia Bowker
[email protected]
Communications Specialist
Elizabeth Emanuelson
[email protected]
Graphic Designer
Kristin Goede
[email protected]
Membership / Communications Supervisor
Kara Kieran
[email protected]
SumNews is published bi-monthly by the Massachusetts Society
of Certified Public Accountants, Inc.®; 105 Chauncy Street, 10th Floor, Boston, MA 02111.
Subscriptions to SumNews are limited to members of the Society only as a
member benefit and the subscription is free to all members. Application to mail at
periodical postage rate paid at Boston, MA 02205.
POSTMASTER: Send address changes to: SumNews, MSCPA, 105 Chauncy Street,
10th Floor, Boston, MA 02111. SumNews is provided to each member of the
Massachusetts Society of CPAs, free of charge, as a member benefit.
Additional Content
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9
17
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Chairman’s Message
Membership
Management of an Accounting Practice
The Buzz
Continuing Professional Education
Classifieds
Member Spotlight
Each and every member of the MSCPA receives one issue on
a bi-monthly basis, six times per year.
©2011 Massachusetts Society of Certified Public Accountants Inc.®
The opinions expressed herein are those of the authors, and not
necessarily those of the Massachusetts Society of CPA’s.
* EDITOR’S NOTE:
Frank Constance of Coles & Bodin LLP, Needham, has been appointed to the Board of
Directors. The MSCPA regrets the error that appeared in the Winter II issue of SumNews.
Thank You
A Letter From Chairman Jeffrey Solomon, CPA
my first
“From
year as a MSCPA
member to the
present, I’ve
greatly benefited
from my personal
involvement within the Society.
”
Society has
“The
also helped me
stay connected
with the profession by providing
me with the latest industry news
and by offering
informative CPE
courses.
”
As my term as chairman draws to an
end, I want to thank the Society staff
and fellow board members for making
my job very easy, with a special thank
you to Ted Flynn for putting up with my
constant calls and questions throughout the year. The Society staff is dedicated to you, and without their commitment to the profession, we would
not have one of the most respected
state societies in the country.
I am proud of the achievements that
were made in the profession during
my tenure. One of my priorities as the
incoming chairman was to reach out
to firms across the Commonwealth to
communicate our value, and to hear
feedback on how the Society could
become stronger. Between the board
and staff, we visited over 20 firms and
experienced very positive and productive interactions that will help the
Society grow and provide you with
the tools and pertinent information
you need. Additionally, the Society’s
presence on Beacon Hill has helped
form new tax legislation that should
bring major improvements for all of us
in the future. “MSCPA By the Numbers”
(page 6) gives you the rundown of the
other Society activities during 2010.
It's MSCPA Membership Renewal Time!
Renew your membership online: www.mscpaonline.org/renewdues
Renew your membership by phone: 800.392.6145
From my first year as an MSCPA member to the present, I’ve greatly benefited from my personal involvement within the Society. As a young professional,
I attended Society events and joined
committees to network with people
that have helped me advance my career, and whom I now consider to be
my lifelong friends.
The Society has also helped me stay
connected with the profession by
providing me with the latest industry
news, and by offering informative CPE
courses. I urge you to get involved and
explore different interests you may
have or pursue new twists on your professional training. You will be glad you
did. Learn more about how you can
get involved on page 7.
To kick off the new year at the Society,
please join me at the Annual Meeting
and Recognition Reception on May
12. It is a great way to see what the
Society offers to its members, honor
the future of the profession, meet new
contacts and connect with old acquaintances.
As I pass the torch to my friend, Stu
Benton, I know the Society will be in
good hands and continue to be a
strong and vibrant organization under
his leadership. I have been honored
to serve you and look forward to my
continued involvement for many more
years to come.
Till we meet again,
Jeff
sumnews Spring 2011
3
IRS Hiring
Agents in
Abusive
Transactions
Group
By Lance Wallach
Here it is. Here is proof of my predictions. Perhaps you
didn’t believe me when I told you the IRS was coming after
what it has deemed “abusive transactions,” but here it is,
right from the IRS’s own job posting website: “If you or
your clients were involved with a 419, and you haven’t yet
approached an expert for help, you had better do it now,
before the notices start piling up on your desk.”
Specific forms need to be properly filed under IRC Section
6707A to avoid large IRS fines. These fines are in addition
to IRS audits and disallowances of tax deductions. With this
tactic, the IRS gets your client twice. First, they get audited
and their tax deduction gets disallowed with possible
interest and penalties. Then the IRS comes after your client
again for not properly filing forms under Internal Revenue
Code 6707A. The resulting fines for not properly filing are
large, but they can usually be avoided by properly filing the
required forms. Here is a small portion of the job posting I
referred to above:
OUR TRADECENTER TAX TEAM
Job Title: Internal Revenue Agent
(Abusive Transactions Group)
Agency: Internal Revenue Service
Open Period: Monday, October 18, 2010, to Monday,
November 1, 2010
Sub Agency: Internal Revenue Service
Job Announcement Number: 11PH1-SBB0058-0512-12/13
Who may be considered:
•
4
IRS employees on career or career conditional
appointments in the competitive service;
•
Treasury Office of chief counsel employees on career
or career conditional appointments or with prior
competitive status; and
•
IRS employees on term appointments with potential
conversion to a career or career conditional appointment in the same line of work.
www.MSCPAonline.org
Steve Burke,
John Colucci,
Esquire
Esquire
• CPA
• Tax Controversies and
•
•
Planning
•
• ESOPs
•
• Employee Benefits/ERISA •
• Executive Compensation •
• Estate Planning
Rick Stone,
Esquire
CPA
Business Succession
Mergers and Acquisitions
Estate Planning
Start-up Businesses
Private Companies
State, Federal and
International Tax:
[email protected]
[email protected]
[email protected]
(781) 904 - 2711
(781) 904 - 2691
(617) 848 - 9360
• Planning and
Controversy
• Audits
• Appeals
• Litigation
TradeCenter 128
300 TradeCenter, Suite 6400
Woburn, MA 01801
www.mclane.com
Woburn, MA
Concord, NH
Manchester, NH
Portsmouth, NH
|
|
|
|
(781) 904 - 2700
(603) 226 - 0400
(603) 625 - 6464
(603) 436 - 2818
IRS
According to the job description, the
agents of the Abusive Transactions
Group will be conducting examinations of individuals, sole proprietorships, small corporations, partnerships and fiduciaries. They will be
examining tax returns and will
“determine the correct tax liability,
and identify situations with potential
for understated taxes.”
These agents will work in the Small
Business/Self-Employed Business
Division (SB/SE), which conducts
examinations for about 7 million
small businesses, and upwards of 33
million self-employed and supplemental income taxpayers. This group
specifically goes after taxpayers who
generally have higher incomes than
most taxpayers, need to file more tax
forms and rely more on paid tax
preparers. Their examinations can
contain “special audit features or
anticipated accounting, tax law or
investigative issues,” and look to
make sure that, for example,
specialty returns are filed properly.
The fines are severe. Under IRC
6707A, fines were up to $200,000
annually for not properly disclosing
participation in a listed transaction.
There was a moratorium on those
fines until June 2010, pending new
legislation to reduce them, but the
new law, which was passed in
September, virtually guarantees you
will be fined. The fines had been
$200,000 per year on the corporate
level and $100,000 per year on the
personal level. You were fined even if
you made zero contributions for the
year. All you had to do was to be in
the plan and fail to properly disclose
your participation.
they are going to move aggressively
to collect from people that were
already assessed. There is no reason
not to now, which is especially true
because the new legislation still does
not provide for a right to appeal or
judicial review. The IRS is still judge,
jury and executioner. Its word is
absolute as far as determining what
is a listed transaction, or now, a
reportable transaction, participation
that now triggers the same penalty.
A reportable transaction is defined
as any transaction with the potential
for tax avoidance, a much broader
definition than that for a listed
transaction.
You can possibly still help your clients
avoid all this by properly filing Form
8886 immediately with the IRS. Time
is especially of the essence now, as
you must file before they assess the
penalty. For months, the IRS held off
on actually collecting from people
that they assessed because they did
not know what Congress was going
to do. But now they do know, so
So you have to file Form 8886 fast,
but you also have to file it properly.
The IRS treats forms that are incorrectly filed as if they were never filed.
You can be fined for filing incorrectly,
or for not filing at all. The statute of
limitations will not begin unless you
properly file. This means that the IRS
can come back to get you any time
in the future unless you file properly.
The road to success
is not always paved.
www.dgccpa.com
Training
Mentoring
Collaboration
At DGC, we provide the tools and resources to
help you reach important milestones in your career.
If you don’t want these new IRS
agents, or any other IRS agents for
that matter, to be earning their
paychecks by coming after your
clients and you as a material advisor,
make sure you have done all you can
to ensure that you have filed properly by reaching out for expert help
today.
Information provided herein is not
intended as legal, accounting, financial or
any other type of advice for any specific
individual or other entity. You should
contact an appropriate professional for
any such advice.
Lance Wallach, National Society of
Accountants Speaker of the Year and
member of the AICPA Faculty of Teaching Professionals, is a frequent speaker
on retirement plans, financial and estate
planning and abusive tax shelters. He
writes about 412(i), 419 and captive
insurance plans. He gives expert witness
testimony, and his side has never lost a
case. Contact him at 516.938.5007 or
[email protected].
sumnews Spring 2011
5
MEMBERSHIP
MSCPA By the Numbers
Check out these facts and figures and watch the value of your membership add up!
In 2010, the MSCPA:
Held
186 CPE courses in 19 locations throughout Massachusetts.
Had
Saved members at least
480 members attend MSCPA Red Sox and Celtics games.
$540 on CPE (if all 80 credits were taken through the MSCPA).
1,200 members on the MSCPA's LinkedIn.com group; had 589 fans of the MSCPA's Facebook page;
and 1,020 followers on Twitter.
Organized 20 special events ranging from golf outings to networking breakfasts.
Connected with
Offered
22 committees for MSCPA members to join, and created a network of 700 active members.
Distributed
Encouraged
Donated
Reached
6,500 financial literacy calendars to the public through 110 community libraries in MA.
875 MSCPA student members to pursue accounting as a career. Provided 58,202 CPE credits.
Protected the CPA license of 10,500 members through continuous lobbying and legislative monitoring.
$83,000 to students through scholarships and CPE Exam vouchers. Administered 350 peer reviews.
Responded to 50 interview requests from local and national news media.
Engaged 400 young professionals through community service projects and events.
650 job seekers at the bi-annual career fairs.
Hosted
Linked
45 members with local nonprofits seeking CPAs to serve on their boards.
150 jobs in the Career Center (members receive a 30% discount) and over 50 per diem job opportunities.
Bottom Line: The Value of Your MSCPA Membership is a Number that Can't be Crunched.
6
www.MSCPAonline.org
Make the Most of Your
MSCPA Membership Join a Committee
While your MSCPA membership provides
benefits such as SumNews, Friday@Five,
advocacy and CPE discounts, active
participation and engagement in the
MSCPA will yield the highest ROI. The more
you get involved, the more benefits you
receive. Get the most out of your MSCPA
membership and join a committee.
“
Committee participation allows you to forge
lasting ties with others who have common
professional interests and similar business
concerns. These relationships will be rich,
ongoing sources of inspiration and ideas.
– Robert Half International
”
By joining a committee you:
• Gain a competitive edge by being an
active, informed professional;
• Broaden your perspective by collaborating with peers outside of your place
of employment;
• Convey to your employer your commitment to increasing your technical
and communication skills; and
• Expand your professional network and
develop new relationships that can act
as a sounding board or advisory group.
“
Make the commitment. Get involved in the
Society, and I guarantee that it will pay you
back tremendously.
– MSCPA Chairman Jeffrey Solomon, CPA
”
You can choose from over 20 MSCPA
committees based on your area of
interest. The new committee season
begins in May, so it’s a perfect time to get
involved. Committees generally meet six
times a year for a maximum of two hours
per meeting. The time investment is minimal, but the return is invaluable.
Visit www.mscpaonline.org/committees
to view a list of all MSCPA committees
and to join online. If you’d like more
information on committees, email Beth
Bouchard,
[email protected].
Young Professional Committee
Involvement
All members, regardless of career level,
are encouraged to join a committee –
it's never too early to get involved!
Committee participation is a great way
to demonstrate to your manager that
you are interested in developing your
career and strengthening your leadership skills. Plus, it's fun – bring fresh, new
ideas to your peers while learning
about your industry or niche from more
seasoned professionals.
Committees provide the opportunity to
network and collaborate with like minded members that can provide
guidance and useful insight. Take the
initiative and join a committee today:
www.mscpaonline.org/committees.
“
Joining the MSCPA real estate committee has been a great experience which
has positively impacted my career. It’s
provided great opportunities to network
with colleagues who have similar
interests, as well as offering interesting
and highly relevant presentations. Since
joining, I have increased both my
network and my knowledge of the real
estate community in Boston. I encourage
other young professionals to get involved
and attend a committee meeting.
”
– MSCPA Member Anthony Rooney,
CPA
7
Sheraton Hotel, Needham
www.mscpaonline.org/htconference
FASB/ IASB Joint Projects Update
Lease Accounting –
New Exposure Draft
Accounting for Income
Tax Uncertainties
Corporate Tax and S Corporations
Business Combination
Valuation Matters
Fraud Matters
Information Technology Security
Revenue Recognition Updates
*Special Thanks to our Exhibitor as of 4/1
MSCPA
Annual Communications Survey
Complete the Survey and Enter to Win a:
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How do you like to receive your news
and MSCPA updates? Is it by email, print
or social media? Let us know what you
think! Your feedback will help us determine
the best way to communicate with our
membership and what type of content we
should be covering. By completing this
brief survey, you can enter to win a $150
VISA gift card or a $50 VISA gift card. The
survey will close on May 31, 2011.
Take the survey today:
www.mscpaonline.org/commsurvey
8
www.MSCPAonline.org
42nd Annual
Accounting
& Auditing
Conference
Marriott Hotel, Burlington
www.mscpaonline.org/aaconference
Fraud in a Financial
Statement Audit
SAS and SSARS Update
FASB Pronouncements
(Accounting Standards Updates)
*Special Thanks to our Exhibitors as of 4/1
FRIDAY, JUNE 10TH
high
technology
accounting
conference
THURSDAY, JUNE 16TH
MEMBERSHIP
Friday@Five
Stay in the Know
Friday@Five, the MSCPA's e-newsletter, provides a
weekly update on legislative changes, IRS and DOR
updates, upcoming CPE courses and MSCPA news and
events. Reading Friday@Five is the best and easiest way
to stay current on professional issues and to learn about
MSCPA benefits and offerings.
Not Receiving Friday@Five?
Check your MSCPA profile to make sure we have
your email address on file:
www.mscpaonline.org/update_profile.
Add [email protected] to your
email address book. This will prevent Friday@Five
from being filtered in your spam or junk folder.
You may have inadvertently unsubcribed from
Friday@Five by unsubscribing from other MSCPA
communications. Please contact Kara Kieran,
[email protected] if you think this may be
the case.
THRIVING
MANAGEMENT OF AN ACCOUNTING PRACTICE
in challenging times
By Rita Keller
Do you know the official definition of plateaued? It means a
relatively long period of stability, a leveling-off. As I travel across
the country talking with hundreds of CPA firm leaders, many of
them tell me they seem to have plateaued. Try as they might, they
can’t seem to propel their firm and their people to a higher level.
Whether you are a long-time firm leader or one of the younger
partners just stepping-up to leadership, it is important to realize
that to move off the plateau and climb the next mountain you
must exit the ways of the past and enter the path toward improvement. This applies to you, personally, and to the firm in general.
Firms that aggressively address the following important management concerns will build a foundation for future growth and
profitability.
The Three M's: Mentoring, Marketing and Managing
Now, more than ever, CPA firm leaders need to ask themselves:
What more can we do during these challenging times?
Why is it important to have a healthy mentoring program?
Why should all team members renew their enthusiasm for
marketing?
How can we best utilize the power of all generations inside
the firm?
What can we do to help our managers truly manage — taking
it beyond just a title?
Winning the CPA Firm Communication Game:
Saying What Needs to Be Said
The good old days are gone; status quo is not a choice. To survive
and thrive in the future, firm leaders need to enhance their
communication. To win new clients and to attract and retain an
all-star team, effective and timely communication is essential. Firm
leaders should consider the following questions:
How do your current and potential clients view your firm?
Are your firm leaders saying what needs to be said to each
other?
How can firms engage their people to help the firm thrive?
Why is communication at the root of almost all hurdles inside
a firm?
Can information sharing truly motivate your workforce?
What about the diversity issues regarding communication
inside a firm?
To hear great ideas on these topics and go home with
practical tools to implement in your firm, mark your calendars now for the MSCPA’s annual New England MAP
Conference on November 16 – 18, 2011. I am delighted to
be part of the conference this year and am looking
forward to engaging in lively discussions with you and your
peers on improving essential communications — outward,
downward, upward and between diverse groups inside the
firm.
Rita Keller, Keller Advisors, LLC, Practice Management
Solutions is an award-winning and widely respected voice
for CPA firm management. She writes an award-winning
daily blog focused on CPA firm management and works
with firms across the country to build a firm where top
talent wants to stay and build their careers. She has been
repeatedly named to the Top 100 Most Influential People
in Accounting by Accounting Today.
sumnews Spring 2011
9
DIVORCE PLANNING
By Laura Da Fonseca,
CPA, CFE, CFF, CDFA, MST
Minimizing The Stress Of Divorce
Divorce, one of the more traumatic
events in life, is becoming a statistical certainty for more than 50
percent of married couples. Stress is
an inherent element in this extremely
emotional and personal experience,
but some of the stress can easily be
prevented when the proper specialists have been consulted. Although
lawyers have the expertise to facilitate the legal dissolution of the
marriage and to apply applicable
state laws on property division and
support, there are aspects of the
process that may require the expertise of others. Certified public
accountants (CPAs), certified divorce
financial analysts (CDFAs), and
certified valuation analysts (CVAs)
can assist lawyers and alleviate some
of the avoidable stress in the divorce
process by assisting in evaluating
proposed divorce settlements.
When evaluating property settlements and support agreements, it is
critical to consider the future tax
ramifications of the settlement and
the future cash flow requirements of
the parties. It may seem perfectly
equitable to distribute the assets
50/50; however, depending upon the
assets each party receives, there may
be more tax liability assumed by or
more liquid assets given to one
party, making the settlement less
equitable when looked at prospectively.
10
www.MSCPAonline.org
The first area where a CPA can be
helpful is in assisting the party in
completing the list of assets and
debts, and preparing the budget of
income and expenses. This is the
foundation from which the judge
evaluates the divorce settlement.
When listing the assets, depending
upon the respective state, the
separate and the marital assets need
to be identified. Property owned by
one party prior to marriage or
property received by a party as a gift
or inheritance during the marriage,
as long as it is not commingled with
marital assets, may remain a separate
asset to that individual party. If the
asset appreciated during the
marriage that appreciation may be
considered a marital asset. For
example, if the husband inherited
Bank of America stock during the
marriage, and kept it in a brokerage
account in his name only, that asset
may be considered a separate asset.
If the Bank of America stock's fair
market value was $100 a share when
it was inherited, but its value is $200
a share at the time of the divorce,
the $100 appreciation could be
considered a marital asset. Also, if
the husband put the stock into a
jointly owned account, the separate
asset is converted into a marital
asset. These laws vary by state and
the CPA should work closely with the
attorney in identifying the specific
laws in the jurisdiction of the divorce.
When preparing budgets, the CPA
can review the last five years of
financial activity to identify missing
income and expenses to gain an
understanding of the standard of
living to which the couple has been
accustomed. In addition, the CPA
may consider future expenses that
are part of their new environment.
DIVORCE PLANNING
Once the parties’ potential needs are
identified through the budget, the
assets can be evaluated to determine
what will be necessary to meet those
needs. If the asset division isn’t
sufficient to support the party,
spousal support can be an additional
consideration.
When evaluating the assets for
allocation, the fair market value of
each asset needs to be determined.
Appraisals are necessary for real
estate, and business valuations are
necessary for closely held business
entities or sole proprietorships of the
parties. When attaining business
valuations, an independent CVA is
strongly recommended.
When evaluating how the assets will
be allocated, the mixture of assets
awarded should take into consideration the parties’ immediate cash
flow requirements, the future needs
of the parties, and the tax consequences of potential asset dispositions. In order to meet current
financial obligations, liquid assets,
income generating assets or assets
that can be easily converted to cash
are necessary. When an asset is
liquidated, only the after-tax cash
flow will assist in meeting the financial obligations of the party. By
accepting assets with low cost basis,
the party is accepting the future tax
obligation along with the asset.
Some specific tax considerations that
need to be reviewed are the receipt
of low basis assets, distribution of
the retirement plans, the sale of the
personal residence, business owner-
ship, spousal support and the
applicable tax rates. Real estate,
artwork, jewelry, boats, etc. are not
assets that are easily liquidated.
Accepting retirement account assets
includes the assumption of the
underlying taxes on future distributions. Generally, retirement accounts
can be distributed through a Qualified Domestic Relations Order
(QDRO) where a percentage of the
retirement accounts are earmarked
for the non-employee party. The plan
document needs to be reviewed to
evaluate what options for distribution are available. ROTH IRAs can
have little to no future tax liability on
their distributions, and therefore
could be the better choice in some
circumstances.
Continued on page 12
Visit wolfandco.com/team to learn more.
sumnews Spring 2011
11
DIVORCE PLANNING
The personal residence is an asset
that has personal attachment to the
parties. Although one or both parties
may want to retain the residence, in
some cases, due to the future
financial position of the parties, it
may not be financially prudent to
keep the property. As a result, there
may need to be some difficult
discussions with the couple to
explain the ramifications of not
disposing of the residence. Taking
the personal residence in your
divorce settlement can be structured
to minimize future taxes. If the house
is to be retained until the underage
children become of age, it may be
beneficial to keep the house in both
names until that time, and then sell
the house and distribute the
proceeds. The party not living in the
residence still owns the property and
will get credit for the other party's
time residing in the property.
12
www.MSCPAonline.org
When the residence is sold, both
parties will qualify for the $250,000
exclusion on the gain on the sale of a
personal residence. If the house is
transferred to the residing party,
he/she will only have his/her
$250,000 exclusion to use toward
the gain on the sale of the entire
residence, potentially resulting in a
partially taxable gain. In addition, it is
critical that the property be
refinanced during the transfer to
prevent the party who no longer
owns the property from being legally
liable on the mortgage. Retaining
joint ownership or staying liable on
the mortgage may impact the ability
of the party not living in the
residence to obtain financing if
he/she decided to purchase a
principal residence of his/her own.
A business owned by one or both
parties may be one of the more
valuable assets of the marriage.
Valuing a closely held business
requires judgment by the CVA to
arrive at the value. The business
records will need to be closely
reviewed to ensure that expenses are
reasonable, any personal payments
on behalf of the owners have been
properly classified and that compensation to owners is reasonable. Once
the value is established, the parties
will need to decide the future of the
business. The business may not
survive with two owners at odds with
each other, and therefore the only
options may be for one party to take
the business as part of the asset
division or to sell to a third party.
Taking the business as part of the
asset division is a nontaxable transfer
of property “incident to divorce.” As
an alternative, the entity may redeem
the party's ownership interest, but
the result would be a taxable transaction.
DIVORCE PLANNING
If there aren’t sufficient assets in the
marriage to arrive at the desired
division of assets between the
parties, an interest-bearing promissory note may be used. If an
interest-bearing promissory note is
used, the note should be collateralized to protect the party in the event
of default. There is always risk in
accepting a promissory note in lieu
of taking another asset currently.
When all assets have been
earmarked for distribution, there
may be instances where one party
may not have sufficient earning
potential or income earning assets to
support him/herself. If that is the
case, spousal support can be
requested. Spousal support can be
included in the income of the recipient party and tax deductible for the
payer party if all of the following
requirements are met:
The payments must be in cash, check or
money order;
There must be a divorce or separation
agreement;
The couple cannot agree, in the agreement, that the payments wouldn’t receive
spousal support tax treatment;
The couple cannot reside in the same
household;
The payments cannot be required to be
made after the death of the recipient
party;
The couple cannot file a joint return; and
No portion of the payment may be
considered child support.
“Certified public accountants
(CPAs), certified divorce financial analysts (CDFAs), and
certified valuation analysts
(CVAs) can assist lawyers and
alleviate some of the avoidable
stress in the divorce process by
assisting in evaluating
proposed divorce settlements.”
Even if the payments, on the surface,
appear to qualify as spousal support,
they will be characterized as child
support if the payments will be
reduced, upon the happening of any
contingency relating to a child, or at
a time that can be clearly associated
with the contingency related to the
child. A contingency, such as attaining a certain age, marriage, death,
employment, etc., is related to a
child, whether or not the event is
certain or likely to occur. There are
only two situations where payments
are considered as “clearly associated
with a contingency” — when the
payments are to be reduced not
more than six months before or after
the date the child is to attain the age
of 18, 21, or the legal age of majority
in their state, or on two or more
occasions, which occur not more
than one year before or after a
different child attains a certain age
between 18 and 24, inclusive. For
example, if spousal support
payments will decrease from $1,000
a month to $500 when the child
reaches the age of 18, the $500
decrease in the spousal support
payment will be considered child
support from inception.
Spousal support may be recaptured.
If the payments are reduced during
the initial three-year period by
certain calculated amounts, the
payments are still deductible when
made, but the reduction is recaptured and included as taxable
income of the payer party beginning
in the third year after the divorce.
The recaptured amount is deductible
by the recipient party at the same
time. The recapture only applies for
one year. There are exceptions to the
recapture rule. The excess does not
need to be recaptured if either party
dies or the recipient party remarries
before the end of the third year, the
payment fluctuates due to circum-
stances the payer doesn’t control,
the payments are temporary spousal
support or the payments decline by
$15,000 or less over the first three
years.
Other non-tax related issues that
couples must consider include
changing the beneficiaries on life
insurance policies or retirement
accounts, getting health insurance
coverage, completing QDROs, etc.
before the divorce is final, getting
life insurance on a payer party,
determining when social security or
retirement benefits can be paid to
the non-employee party, applying for
new credit cards and many other
issues.
As you can see, there are many
pitfalls that can be encountered by
couples involved in a divorce. Those
who are proactive and receive the
proper advice from experts will
benefit by reducing some of the
unnecessary stress and being confident that they have reached the best
results possible for their situation.
Laura Da Fonseca, CPA, CFE, CFF,
CDFA, MST, is a principal with
Piccerelli, Gilstein, & Company, LLP.
She has extensive experience in
taxation and is a member of her
firm’s litigation support practice.
Da Fonseca received her bachelor’s
degree in accounting from the
University of Massachusetts Dartmouth and her master’s in taxation
from Bryant University.
Da Fonseca is a member of the
MSCPA, RISCPA, IDFA, ACFE, and
RICFE. She is on the board of the
RICFE and is the chair of their
Scholarship Committee.
sumnews Spring 2011
13
The MSCPA and the AICPA are looking for women who have made significant contributions to the accounting profession, or who demonstrate characteristics that enable
them to become leaders in the profession and their community. Nominations will be
accepted through June 30, 2011.
The awards program highlights the achievements of women in the
CPA profession. Awards fall into two categories: Experienced Leaders,
who are established members of the profession; and Emerging
Leaders, who are professionals that have been in the accounting field
15 years or less.
Criteria for selection include:
The mentoring of other professionals;
Leadership in workplace initiatives and improvements;
Overall contributions to the profession;
Public or community service; and
Involvement with their alma mater.
Winners will be selected by a panel of past award recipients and
MSCPA leadership, and will be recognized at the Women to Watch
Recognition Reception in September.
Government
Accounting
& Auditing
Conference
Sheraton Hotel, Framingham
www.mscpaonline.org/gaaconference
Qualifies for 8
Yellow Book Credits
GAAP Update
DOR Update
Single Audit Update
Future of Cloud
Computing in Government
Accounting Software
*Special Thanks to our Exhibitors as of 4/1
14
www.MSCPAonline.org
FRIDAY, JUNE 17TH
If you’d like to view a list of last year's winners and nominate a
Woman to Watch, visit www.MSCPAonline.org/WomentoWatch.
Contact Kara Kieran, [email protected] for more information.
“As my practice grew,
my bank was right
there with me.”
At LowellBank, I value the personal one-on-one relationship
with my banker. Their commitment to my small business and it’s
growth made all the difference.
To experience the LowellBank difference, call Tim Frechette
at 978.332.7035 or email [email protected].
www.LowellBank.com
Looking
to the
Future of
Forensic
Accounting
There is a point where the accounting
and legal professions merge. A point
when you have to investigate,
analyze, interpret and communicate.
It’s a point where you often have to
put pieces together with partial information that is buried in a sea of data,
and then present a clear picture of
the situation to a jury, judge or mediator. This point is called forensic
accounting. When you speak to practitioners who specialize in forensic
accounting — such as Mike Ueltzen,
CPA, CFF, CFE, a partner at Ueltzen &
Company, LLP in Sacramento, CA,
and Ronald Durkin, CPA, CFF, CFE,
CIRA, the National Partner in
Charge-Fraud and Misconduct Investigations at Clifton Gunderson LLP in
Los Angeles — you quickly understand why the forensic accounting
practice area is set for tremendous
growth and opportunity.
Ueltzen, chair of the CFF Credential
Committee, and Durkin, a member of
the AICPA National Accreditation
Commission, recently discussed the
state of forensic accounting, its future
and the Certified in Financial Forensics (CFF) credential during telephone
interviews with the AICPA.
Continued on page 16
sumnews Spring 2011
15
FORENSIC ACCOUNTING
AICPA: What is the most enjoyable part
of forensic accounting for you?
Ueltzen: “I love what I do — the
people I work with, the cases I am
working on and the adrenaline rush
that comes with it. The adrenaline
rush means you know you are going
into the courtroom, a deposition, a
mediation or a meeting and somebody is going to try to discredit you.
As long as you are on solid ground,
you are good. But you never know
what they are going to say, what they
are going to do and how they are
going to come at you. So I like being
at the top of my game.”
Durkin: “This is hallowed ground for
me. I love doing this stuff. Combining
my FBI skills with the CPA skill set that
I have acquired over the years — it’s
exciting. I’ve always wanted this
credential, the Certified in Financial
Forensic credential, to be one that
stretches across multiple, different
areas.”
data and tell a story. It’s the forensic
accountant who is called upon. Somebody with some special experience to
help unravel the mess.”
AICPA: What does it take to be a forensic accountant and do the job well?
AICPA: What do you see as the biggest
opportunities in forensic accounting?
Ueltzen: “There is an incredible
opportunity for young people to join
in this arena of the profession and
learn a specialized skill set. Let’s face
it, if you pick up an article about a
bank failure, an industry failure or
Madoff, who are among the first to
arrive on the scene? The forensic
accountants with the special skill set,
the interviewing skills, the ability to
conduct computer forensics, the
ability to take incredible amounts of
Durkin: “You’ve got to keep your
eyes open for clues, be intuitive and
more than skeptical. I call it forensic
thinking. You’ve got to be alert to the
possibility that there is more than
meets the eye. You need to understand that the essence of fraud is
concealment. You can’t give up—you
must push through to the conclusion
and deal with incomplete facts. You
need to be able to do the analysis
and understand how it will play out in
court. You must be able to communicate.”
Article provided by The American
Institute of Certified Public Accountants.
Durkin: “I think that everybody needs
to be better equipped to deal with
fraud issues, both proactively and
reactively. Proactively includes being
alert to the possibility that fraud
could exist and what types [auditors]
may find. From the reactive side, we
need to equip accountants to be
better at interviewing. I think interviewing skills are weak today.”
Ueltzen: “The biggest challenge is
finding good forensic accountants.
Finding people that are willing to
step up, accept a challenge and be
cross examined. To find people
willing to deal in areas where they
may not feel totally comfortable
because there are no absolutes; and
people that are willing to tell their
story in front of a large crowd in
adverse conditions and subject themselves to cross examination.”
16
www.MSCPAonline.org
©2011 LarsonAllen LLP
Illustration by Alan Pranke
AICPA: What do you see as the biggest
challenge in forensic accounting?
• Nationalbreadthwithoutthecorporatebluster
• Builders—morethanmoversandshakers
• Ahistoryofgrowthandabrightfuture
LarsonAllen is growing in New England.
We would like to hear from firms interested in joining us.
ContactDougFiebelkorn,CPAat617-984-8114.
Accounting | Assurance | Tax | Consulting | Advisory
Noticeably Different.
300CrownColonyDrive,Suite310,Quincy,MA02169
To submit your member/firm news and announcements,
email Elizabeth Emanuelson, [email protected].
THE B
UZ Z
Firm News
DiCicco, Gulman & Company,
LLP, Woburn, will host its third
annual A&E Summit in June.
Downey & Company,
Braintree, was accepted as a
member of Premier International Associates. Premier
International is a worldwide,
elite, tightly-knit network of
accounting, tax and business
consulting firms.
Tobolsky & Wachsler CPAs
opened an office at 129
Morgan Drive, Norwood.
Wolf & Company PC, Boston,
was named a 2011 BBJ
Pacesetter by the Boston
Business Journal for its fifth
annual Pacesetters event that
recognizes the area's fastest
growing private companies,
ranked by revenue growth.
Promotions and
New Positions
Mark J. Alaimo, CPA/PFS,
CFP®, was promoted to
manager at Sullivan Bille
Group, Tewksbury.
CCR LLP (CCR), Westborough,
promoted Daniel J. McMahon,
CPA, David W. Stevenson,
CPA and James G. Jumes to
partner.
Jim Fitzgerald, CPA, was
promoted to chief operating
officer at VERC Enterprises,
Duxbury.
Pierce R. Keefe, CPA, MBA,
joined Aaron Smith, PC, East
Longmeadow, as a tax
manager.
Edward M. Mulherin, CPA, was
appointed to chief financial
officer at Conihasset Capital
Partners, Inc., Cohasset.
Christopher Pelland, CPA, and
Keith Pfeifer, CPA, MSA, were
promoted to audit manager at
O'Connor & Drew, PC,
Braintree.
Rucci Bardaro & Barrett PC,
Malden, appointed Mark
Paquin, CPA, to partner. As a
full-fledged member of the
firm’s leadership team, Paquin
will continue to direct and
expand its Audit Practice
Group. Harold S. (Hank)
Wolfson joined the firm as
chief operating officer. Wolfson
will be responsible for directing
and managing operations for
the 45-person firm.
Sechrest & Bloom, LLC, Acton,
announced that Jarod J.
Bloom, CPA, CFP, was named
partner effective on January 1.
Bloom is also a partner in the
sister firm, Sechrest Financial
Services, LLC.
Melanie Whitney, CPA, was
appointed to assistant vice
president and senior accounting officer at Rockland Trust,
Rockland.
Speaker/Writer/
Community
Blum Shapiro & Company, PC,
Rockland, announced that:
Jonathan Dupont passed
all sections of the Uniform
CPA Exam;
John A. Lynch, CPA, MST,
partner, was elected
member of the South
Shore Economic Development Corporation for
2011; and
Kevin T. White, CPA,
partner, was elected to the
board of directors of the
South Shore Chamber of
Commerce.
Ellen M. Bruno, CPA/PFS,
Compliance Advisor Professionals, LLC, Berkley,
presented a session on
investment advisor compliance
at the January AICPA
Advanced Personal Financial
Planning Conference in Las
Vegas. Bruno also authored an
article entitled “Summary of
Changes to Form ADV Part 2”
THE BUZZ
in the January/February Planner
newsletter of the AICPA
Personal Financial Planning
Community.
DiCicco Gulman & Company,
LLP, Woburn, donated a total
of $5,000 to The Home for
Little Wanderers, The Lowell
Wish Project and T.H.E. FARM
(Tewksbury Hospital Equestrian
FARM) charities with proceeds
from the sale of used laptops.
The firm now also has a
monthly finance column
running in the Construction,
Design and Engineering section
of the New England Real Estate
Journal.
Kris Hebert of DiCicco,
Gulman & Company, LLP,
Woburn, wrote an article which
appeared in the January issue
of Commercial Investment Real
Estate. The article, titled
“Lease Resistance,” focused on
new accounting standards.
David Sullivan, CPA, and
George Shaw of DiCicco,
Gulman & Company, LLP,
33%
EXPERTISE
Woburn, presented on the
topic of M&A and due
diligence to the Commercial
Finance Association on
February 24.
McGladrey, Boston, and the
McGladrey Foundation
(formerly the Caturano
Foundation), Boston, donated
$8,800 to the Special Olympics
Massachusetts (SOMA)
following the McGladrey
Culinary Challenge for Charity.
Morris N. Robinson, CPA, J.D.,
LL.M., managing director of
the law firm, M. Robinson &
Company, PC, Boston, wrote
an article entitled "IRS Poised
to Announce New FBAR
(Foreign Bank Account Report)
Amnesty" in the Boston
Business Journal’s, Business
View section on February 4.
Millie Tobolsky, CPA, and
Irene Wachsler, CPA, of
Tobolsky & Wachsler CPAs,
Sharon, were quoted in an
article on taxes in the Patriot
Ledger.
29%
DEDICATION
24%
INTELLIGENCE
14%
“MAN,
I LOVE
THIS
STUFF!
WE GIVE
OUR CLIENTS
100%
Our team members bring their diverse backgrounds and strengths to the table,
resulting in a true blend of national firm experience and local firm delivery.
We share a common passion: a personal commitment to each
client’s success as well as to the communities in which we live and work.
The passion to unlock potential
NW
NEEDEL WELCH & STONE
CPAs
is now a
division of
ADVISORS
www.blumshapiro.com
1001 Hingham Street, Rockland, MA 02370
Phone: 781.982.1001
sumnews Spring 2011
17
By Hugh Duffy
How to Fire a Client
No matter the size of the firm, there are going to be
some tough decisions to make along the way – and one
of the most difficult is firing a client.
We no longer live in an environment in which the only
repercussions might be the initial awkward conversation
when the firing occurs. Today, we have positive and
negative social media. In our always-on world where a
negative blog or Twitter posting can go viral in a matter
of moments, accounting professionals will want to ensure
they do not suffer potential negative consequences.
Why Fire a Client?
There are many reasons to sever the accounting/client
relationship. Take a look at these reasons and think about
whether this has happened in your practice.
1. The client takes up too much time. This is the
number one reason we fire clients. Heard of the
80/20 rule in which you spend 80 percent of your
time on the bottom 20 percent of your client base?
These are the clients who are not adding to your
bottom line, so your return on investment is very
slim. It’s better to get rid of the bottom 20 percent of
your clients so you can focus on the remaining clients
who will generate more revenue.
2. The client withholds information. If you find clients
18
www.MSCPAonline.org
not being honest in a particular situation or withholding valuable information that you need to do your
work in the most ethical and legal manner possible,
it’s time to part ways. You cannot afford to damage
your reputation with a client who has the potential to
do harm to himself, and in turn, to your practice.
3. Clients do not want to be helped. As strange as this
sounds, we’ve all had clients who did not want our
professional assistance, no matter how simple or
complex the situation. A client who does not want to
be helped will never accept your advice or respect
your intentions. It’s time to find clients who will
benefit from your professional experience and
knowledge.
How to Fire a Client
Having to say “so long” to anyone isn’t pleasant; think
about the times you’ve had to let an employee go.
Nevertheless, when it’s time to cut the cord, you have to
do it in the most professional way possible.
Looking at the three scenarios above, it’s easy to see why
you would want to fire a client, but one of the main traits
we have as human beings is the “likeability” factor. For
example, you may have a client who will literally give you
the shirt off his back if you ask him for it, but is a lousy
businessman and costs you time and money.
CLIENT MANAGEMENT
If this happens, you need to separate your personal
feelings from your professional beliefs. After all, you may
see the client in religious or social situations. Perhaps you
belong to the same Rotary or Lion’s Club. What are you
going to say to the fired client the next time you see each
other?
The best way to move on is to have a professional
conversation with the client, explaining to him or her why
you need to part ways. You must be prepared to provide
concrete examples. Just as you document activities when
you fire an employee, you need to do the same when you
fire a client.
Be reasonable and explain in plain terms the problem.
While it’s most likely not going to be surprising to the
client that there is a problem, no one wants to be faced
with rejection, so the initial reaction may be anger. If this
happens, reassure the client that this is a completely
private matter between the two of you and should
remain so. You will not talk to anyone about this and you
would appreciate it if the client would do the same.
Back to social media: what do you do if the client says
something negative on LinkedIn, Twitter, Facebook or in
a blog posting? You may have to get an attorney
involved. However, watch your own temper. It would be
unprofessional of you to lash back in retaliation.
Take the high road; the best stance is to do nothing. It’s
better to let the client stumble over his or her words than
to react to them.
If it escalates to the point that your colleagues and
perhaps even your other clients are aware of the problem, it may be time to communicate via letter or email to
explain the situation. Still, don’t reveal any information
that can be used against you later on. Again, an attorney
can guide you through this difficult situation.
There are multitudes of business matters that we are
faced with, but we often forget the human side of the
equation. Firing anyone isn’t pleasant, but with planning,
communications and calm demeanor, you’re going to
emerge positively from the situation.
Hugh Duffy is co-founder and chief marketing officer of
Build Your Firm, a practice development and marketing
company with services to small CPA firms. Duffy teaches
a series of Accounting Marketing Workshops; writes an
email newsletter reaching thousands of accountants; and
is frequently published in various publications, including
The CPA Technology Advisor, Progressive Accountant
and state CPA society newsletters and magazines. He can
be reached at 888.999.9800 x151, or at
[email protected].
sumnews Spring 2011
19
BACK TO CPE...
*Note: $/$ = Member / Nonmember
Friday, May 20
Update Security Breach Rules
- 201 MR 17 (AM Session)
Waltham - $140 / $160
Friday, May 20
Microsoft's New Operating System and
Enhanced Office Products (PM Session)
Waltham - $140 / $160
Monday, May 23
Excel Tips, Tricks and
Techniques for Accountants
Newton - $265 / $319
Monday, May 23
Loscalzo's Not-for-Profit
Auditing Made Easy
Framingham - $265 / $319
Yellow Book
Tuesday, May 24
Excel Pivot Tables for Accountants
(AM Session)
Newton - $140 / $160
MAY
Tuesday, May 3
Auditing: Ex-con Shares 14 Fraudulent
Financial Reporting Techniques
Randolph - $265 / $319
Yellow Book
Thursday, May 12
GAAP Disclosure and Review for the
Closely Held Business
Framingham - $265 / $319
Friday, May 13
Update Security Breach Rules
- 201 MR 17 (AM Session)
Framingham - $140 / $160
Friday, May 13
Microsoft's New Operating System and
Enhanced Office Products (PM Session)
Framingham - $140 / $160
Monday, May 16
Annual Review of Tax Cases
Needham - $265 / $319
Monday, May 16
Audits of 403(b) Plans
Newton - $225 / $265
Yellow Book
AICPA Members: $30 Discount
Tuesday, May 17
Work Life Balance
- A Foundation that Enables Sound Ethical
Decisions (AM Session)
Randolph - $140 / $160
Ethics
20
www.MSCPAonline.org
Tuesday, May 17
Audits of 401K Plans
Newton - $225 / $265
AICPA Members: $30 Discount
Tuesday, May 24
Excel Macros (PM Session)
Newton - $140 / $160
Tuesday, May 17
Investment Fundamental
for the Individual
Needham - $265 / $319
Tuesday, May 24
Professional Ethics for CPAs
(AM Session)
Framingham - $140 / $160
Ethics
Tuesday, May 17
Overview A-133 Audit
Randolph - $265 / $319
Yellow Book
Tuesday, May 24
Estate Planning for 2011 and Beyond
Norwood - $265 / $319
Wednesday, May 18
Regulated Investment Companies
Boston - $130 / $130
InfoShare, CFP
Wednesday, May 18
Latest Developments in
Compilation and Review
Waltham - $265 / $319
Thursday, May 19−Friday, May 20
AICPA National CFO Conference
Boston - $1425 / $1125 (AICPA members)
Thursday, May 19
Professional Presence for Women
(AM Sesson)
Needham - $140 / $160
Wednesday, May 25
Estate and Financial Planning
for the Older Client
Norwood - $265 / $319
Wednesday, May 25
Internal Controls for Small Business
Accounting Systems
Randolph - $265 / $319
Wednesday, May 25
Loscalzo's GAAP Refresher
Framingham - $265 / $319
Yellow Book
JUNE
Thursday, May 19
AICPA Trusted Advisor
Thursday, May 19
Overview A-133 Audit
Worcester - $265 / $319
Yellow Book
Wednesday, June 1
Successful Mergers/Acquisitions
of CPA Firms
Needham - $265 / $319
Complete course listings and registration information are available online at: MSCPAonline.org/cpe
Wednesday, June 1
Guide to Audits in Times of Massive
Financial, Legal, Healthcare and
Regulatory Reform
Randolph - $265 / $319
Yellow Book
Wednesday, June 8
Revised Yellow Book
Waltham - $225 / $265
Yellow Book
AICPA Members: $30 Discount
Thursday, June 16
Ethics in the Real World:
Living Values for Today (PM Session)
Needham - $140 / $160
Ethics
Wednesday, June 8
What CPAs Need to Know about Wall
Street Today: Managing Assets for Clients,
your Firm and Yourself
Needham - $265 / $319
Thursday, June 16
Fiduciary Income Tax Returns Form 1041 Workshop
Worcester - $265 / $319
CFP
Thursday, June 2
Improving Engagement Realization
and Profitability (AM Session)
Needham - $140 / $160
Thursday, June 9
LinkedIn for CPAs (AM Session)
Newton - $140 / $160
Thursday, June 16
High Technology Accounting Conference
Needham - $235 / $275
Thursday, June 2
Compilation and Review Essentials - Rules
for Local Practitioners
Waltham - $265 / $319
Friday, June 10
42nd Annual MSCPA Accounting &
Auditing Conference
Burlington - $235 / $275
Friday, June 17
Ethical and Legal Responsibilities
of Board Members
Needham - $265 / $319
Ethics
Thursday, June 2
GAAP Disclosure and Review
for the Closely Held Business
Springfield - $265 / $319
Monday, June 13
Audits of Defined Contribution
Pension Plans
Framingham - $265 / $319
Thursday, June 2
Guide to 15 NEW Fraud Cases
for 2011 Engagements
Randolph - $265 / $319
Monday, June 13
The Complete Guide to Understanding
Challenging Nonprofit Tax and Form
Norwood - $265 / $319
Yellow Book
Wednesday, June 1
Restaurant Accounting and Controls
Norwood - $265 / $319
Friday, June 3
Professional Ethics Update
Springfield - $140 / $160 (AM Session)
Ethics
Friday, June 3
Disclosure - The Key to
Financial Statements
Waltham - $265 / $319
Yellow Book
Monday, June 6
GAAP Disclosure and Review
for the Closely Held Business
Randolph - $265 / $319
Monday, June 6
International Taxation:
To and From the United States
Worcester - $225 / $265
AICPA Members: $30 Discount
Tuesday, June 7
Professional Ethics for CPAs (AM Session)
Randolph - $140 / $160
Ethics
Tuesday, June 7
State Tax Update (AM Session)
Norwood - $140 / $160
Wednesday, June 8
Alternative Investments
(AM Session)
Boston - $140 / $160
InfoShare, CFP
Friday, June 17
Government Accounting &
Auditing Conference
Framingham - $220 / $260
Yellow Book
Friday, June 17
Loscalzo's GAAP Refresher
Worcester - $265 / $319
Yellow Book
Tuesday, June 14
Healthcare Reform - The Inside Scoop
(AM Session)
Needham - $140 / $160
Friday, June 17
The Complete Trust Workshop
Worcester - $265 / $319
Tuesday, June 14
Current Practice Issues and Solutions
in Audits of Employee Benefit Plans
Framingham - $265 / $319
Monday, June 20
Latest Developments in
Compilation and Review
Woburn - $265 / $319
Tuesday, June 14
Mastering Basis, Distributions and Loss
Limitation Issues for S Corps, LLCs and
Partnerships
Norwood - $265 / $319
Monday, June 20
New Critical Decisions in Selecting
the Best Retirement Plan
Randolph - $265 / $319
CFP
Wednesday, June 15
Accounting & Auditing Considerations for
403(b) Plans and Important 2011
Framingham - $265 / $319
Yellow Book
Tuesday, June 21
Surgent's Advanced Critical Tax Issues for
LLCs and Partnerships
Randolph - $265 / $319
Wednesday, June 15
Determining How Much Money
You Need to Retire
Norwood - $265 / $319
CFP
Thursday, June 16
Cases in Corporate Ethics: Discussion of
Real Life Conflicts (AM Session)
Needham - $140 / $160
Ethics
Tuesday, June 21
Time Mastery for CPAs - Over 100 Ways
to Maximize Your Productivity
and Satisfaction
Framingham - $265 / $319
Wednesday, June 22
Social Security, Medicare and
Prescription Drug Retirement Benefits
Randolph - $265 / $319
CFP
sumnews Spring 2011
21
Wednesday, June 22
Strategic Financial Planning and
Corporate Investment Opportunities
Needham - $265 / $319
Thursday, June 23
Work Life Balance - A Foundation that
Enables Sound Ethical Decisions
(AM Session)
Newton - $140 / $160
Ethics
Thursday, June 23
Audits of HUD Assisted Programs
Norwood - $225 / $265
Yellow Book
AICPA Members: $30 Discount
Thursday, June 23
The Complete Guide to Payroll
Taxes and 1099 Issues
Waltham - $265 / $319
Friday, June 24
GAAP Disclosure and Review for the
Closely Held Business
Stockbridge - $265 / $319
Friday, June 24
Implementation Guide to the
Risk Assessment Standards
Worcester - $265 / $319
Yellow Book
NEW ONLINE
ENHANCEMENTS
TO CPE!
Friday, June 24
Top 50 Mistakes Practitioners Make in
Nonprofit Taxation and Governance
Waltham - $265 / $319
Yellow Book
Wednesday, June 29
Advanced Tax Structures: Using Tiered
Partnerships, Multiple Corporations, Series
LLCs and Disregarded Entities
Woburn - $265 / $319
Monday, June 27
Choosing the Best Entity Structure
Under the New Tax Law in 2011
Woburn - $265 / $319
CFP
Wednesday, June 29
Excel-Based Dashboards
Framingham - $265 / $319
Monday, June 27
GAAP Disclosure and Review
Plymouth - $265 / $319
Wednesday, June 29
Step by Step Guide to Compliance
Auditing - A Gateway to Efficiency
Newton - $265 / $319
Yellow Book
Monday, June 27
Tax Practitioner's Guide to
Accounting and Reporting Issues
Randolph - $265 / $319
Thursday, June 30
Professional Ethics Update (AM Session)
Randolph - $140 / $160
Ethics
Tuesday, June 28
Professional Ethics Update (AM Session)
Plymouth - $140 / $160
Ethics
Thursday, June 30
Cloud Computing
Framingham - $265 / $319
Tuesday, June 28
Accounts Payable Fraud
Randolph - $265 / $319
Tuesday, June 28
Strategies and Tactics in the New War
Against Higher Individual Taxes
Woburn - $265 / $319
Find your future
Unique Opportunity
for Tax Professional
We are seeking an experienced
tax senior/manager who is
looking for advancement and a
fast track to partnership.
During busy season, the MSCPA
added some new features to the
CPE section of MSCPAonline.org.
NOW YOU CAN:
Register multiple users for different courses in one transaction;
Discover our collaborative work
environment and strong tradition as a
stable, people-oriented firm with a focus
on work-life balance.
Sign up online for concurrent
sessions at conferences; and
View upcoming webinar listings
from MSCPA partners (members
get a discount!).
22
www.MSCPAonline.org
Thursday, June 30
Not-for-Profit Industry Update and
Major Accounting & Disclosure Issue
Newton - $265 / $319
Yellow Book
Please mail, fax
or email your
resume and salary
requirements to:
Director of Personnel
G.T. Reilly & Company
424 Adams Street
Milton, MA 02186
Fax: 617-698-1803
Email: [email protected]
Work with privately-held
businesses and entrepreneurs
in diverse fields. Find your
future with a well-respected
independent regional firm that
has international reach.
Opportunities also exist for tax
return preparers and entry-level
tax professionals.
G.T. Reilly & Company offers competitive
salary & benefits, training opportunities
and a collaborative work environment
that encourages professional growth.
An independent firm associated with
MARKETING
Your Investment in
Marketing Is an
Investment in the
Future of Your Firm
By Eileen P. Monesson
Many accounting firms are feeling
the effects of the economy. As a
result, firms across the nation are
cutting expenses and streamlining
operations in order to stay afloat.
Every department is being asked to
do more with less, especially in
marketing.
“Marketers are valuable to their firms
because they help ensure that there
is a structured, disciplined approach
to branding. The value in creating a
well recognized, well respected
name and reputation is beyond
measurement,” suggests Sally Glick,
principal of the firm and chief growth
strategist with Sobel & Co., LLC.
Marketing is traditionally viewed as a
cost center and is therefore hard hit
in a bad economic climate. “Marketing and business development are
more important than ever for practitioners and firms in a fragile
economy,” states Tracy Crevar
Warren, owner of The Crevar Group
and editor/co-author of Bull’s-Eye:
The Ultimate How-To Marketing and
Sales Guide for CPAs. “2011 offers
welcome news of business prospects
according to the 2010 CCH Accounting Firm Client Survey. This survey
found that 36 percent of business
clients will consider switching CPA
firms in the next year. The study
clearly demonstrates how competitive the industry has become. Of the
36 percent considering a switch, 55
percent have been prospected by
another firm.”
in the past will not necessarily propel
it in the future,” added Crevar
Warren. “Success in the coming
years will require thoughtful new
strategy and ongoing, disciplined
execution of that strategy.”
According to CCH’s study, 79
percent of the clients interviewed are
generally satisfied with their certified
public accounting firm. Of that
group, only 17 percent reported
being completely satisfied. This puts
many client-accountant relationships
at risk. Merely satisfied clients are
more likely to leave a firm than
completely satisfied clients. Satisfied
clients are not as engaged in the
relationship which can open the door
for a competitor.
Strategic marketers will look at a
commodity service such as audit or
tax, and determine how to add true
value to that service. Marketers are
trained to track a service through its
lifecycle. They know to look for
changes in regulations, technology,
the competition or economy to
develop new market opportunities
for commodity services or a completely new service offering. The
proposed International Financial
Reporting Standards (IFRS) is a great
example. A progressive marketer
would suggest new value-based
services for the firm to prepare
clients for this change in accounting
standards. Another example is
Electronic Healthcare Records which
provides numerous opportunities to
offer practice management and IT
consulting services to clients.
The article entitled “Auditing the
Auditor” published in the April 2010
issue of CFO Magazine claims that
82 percent of auditor changes in
2009 were because companies fired
their auditors (among the Big Four,
the number was 90 percent). Companies are demanding lower fees and
added value ranging from
corporate-board education to
competitive intelligence.
“New business is the lifeblood of a
firm, but what made a firm successful
Service providers should learn from
their counterparts that produce
products. Product-based companies
know the value of marketing and are
Continued on page 24
sumnews Spring 2011
23
MARKETING
committed to the five Ps of this
discipline: product, place, promotion, price and people. Few companies would invest in the production
of a product without conducting
market research to determine its
need. Service providers should do
the same. Marketers should be
involved with the development and
promotion of new services, and
provide input on pricing. Marketers
also need to work on the development of a strong firm culture or
organizational brand.
RainToday.com published the results
of its survey entitled “How Clients
Buy: 2009 Benchmark Report on
Professional Services Marketing &
Selling from the Client Perspective.”
The report identifies the top factor in
a buyer’s decision to hire a service
provider. Ninety percent of the
respondents stated that the overall
value the provider can deliver was an
important factor.
“The true benefit of a good marketing program is that it shortens the
sales cycle,” states Emily Bennington, director of marketing and
development with the West Virginia
office of Dixon Hughes, PLLC. “If I’ve
done my job in promoting the value
of our firm to the right audience,
credibility is established before the
partner meets with a prospect.”
Strong marketers know the importance of demonstrating a high level
of knowledge in a specific industry
niche or service area. They will invest
the time to ensure that the accountants working in a specific area are
educated and communicate their
knowledge in seminars, articles,
whitepapers and case studies. All of
these tools showcase the value that
the firm can bring to the relationship.
The result of a marketing program is
determined by the return in the
investment and value it brings to the
firm. Firms should define benchmarks, such as the number of new
clients, an increase in client reten24
www.MSCPAonline.org
tion, percentage of satisfied clients,
as well as increases in billable hours
and realization rates and measure
these benchmarks over time.
Partners should also track the
number of hours contributed to
marketing by the accountants, as
well as the hours invested in a
project by the marketing team.
Marketers can add more value to a
firm by attending networking events,
writing proposals, ghost-writing
articles and creating seminar materials. This will reduce the cost of
developing these materials (typically
a marketer’s time is not billable) and
allow the accountants to spend more
time on billable work.
“Working as a marketing professional in the service industry is a bit
different,” claims Aliona Groh,
marketing coordinator with Hoyman
Dobson. “I see my success through
the success of our team members.
My goal is to make our team’s job as
easy as possible. The less time that
our team has to spend on marketing,
the more time they have to serve
clients and make money for the
firm.”
Now is not the time to cut back on
marketing. Today’s economy
provides many new areas to explore.
A marketer is trained to provide
recommendations on growth opportunities, as well as a plan to move
new initiatives forward. The future of
a firm depends on its partners
embracing marketing as a strategic
function.
Eileen P. Monesson, is a founding
principal with PRCounts, LLC. The
firm is dedicated to helping its
clients use the power of public
relations to drive their personal,
organizational and corporate brand.
Monesson has 12 years of experience in accounting marketing. She
can be contacted at
[email protected].
deposit & cash management • commercial banking
residential mortgage • investment management & trust
What
can a private
bank do for a
privately oWned business?
as
it turns out,
plenty.
Ranfac Corporation
Avon, Massachusetts
Ranfac Corporation collaborates with their clients to develop solutions to their current and emerging
needs. Our experienced commercial bankers work in the same way, taking the time to understand
your unique business and banking needs and offer tailored solutions that will help you grow, manage
and protect your business — today and in the future.
Please contact Mark Thompson, CEO & President, at (617) 912-1919
or [email protected]
a
www.bostonprivatebank.com
Y
Becoming Your
Clients’ Trustee
By Mark S. Furman & Emily C. Shanahan
Duty of Loyalty
As a CPA, you have intimate knowledge of your clients’ financial
affairs, matters that many of your clients consider to be of a highly
sensitive and confidential nature. You may even be privy to the
dynamics and politics of their families and businesses. Given the
nature of the relationship between you and your client, it would
not be unreasonable to consider your client’s request that you serve
as trustee to be a vote of confidence in your skills and judgment
and a testament to the strength of your relationship with the client.
Serving as a trustee can be a rewarding experience, but it is not
without risks, including lawsuits brought by disgruntled beneficiaries. This article is intended to provide a broad introduction to the
responsibilities of a trustee to assist you in weighing the pros and
cons of assuming that role.
It is critical to be aware that the duty of loyalty that a trustee owes
runs to the beneficiaries of the trust, not the settlor of the trust.
That being said, as trustee, you are not an agent of the beneficiaries.
Rather, the trustee is to act solely in the interests of the beneficiaries and must take affirmative action to further the interests of the
trust.
Fundamental Duties as Trustee
A trustee is a fiduciary. As such, a trustee has several fundamental
duties, including the duty of loyalty, the duty to act prudently, the
duty of impartiality, the duty to account to and inform beneficiaries and the duty to carry out the terms of the trust.
Assuming the role of trustee for a valued client poses the inherent
risk of divided loyalties. Your natural and understandable desire to
please a long-term client who is the settlor of the trust may conflict
with your duty to act only in the best interest of the trust and its
beneficiaries. For example, if the settlor, who also is your client,
approaches you in your role as trustee to request that the trust
make a loan to the settlor, you must assess the issue from the
perspective of whether the loan is good for the trust, not whether
there is any plausible basis to conclude that the loan can be made
without harming the trust. The trust that gives the trustee authority to make loans does not insulate the trustee from a breach of
fiduciary duty claim if the trustee fails to take affirmative action to
further the interests of the trust.
Continued on page 26
sumnews Spring 2011
25
TRUSTEE
Duty to Act Prudently
Duty of Impartiality Continued
A trustee is under a further duty to act prudently. In particular, a
trustee, absent contrary language in the trust, is subject to the
prudent investor rule, as codified by the Massachusetts Prudent
Investor Act, Mass. Gen. Laws ch. 203C (“MPIA”). The standard of
care under the MPIA requires a trustee to “invest and manage trust
assets as a prudent investor would, considering the purposes, terms
and other circumstances of the trust, including those set forth in
subsection (c). In satisfying this standard, the trustee shall exercise
reasonable care, skill and caution.” Mass. Gen. Laws ch. 203C, §
3(a). This assessment is made in light of all the facts and circumstances as of the time the investment decision was made.
In practice, determining the standard of living to which the income
beneficiary is entitled may be complicated because the terms of the
trust are unclear. Under the terms of the trust, the trustee must take
into account the income beneficiary’s other assets? May the trustee
do so? Or is the trustee affirmatively precluded from taking the
income beneficiary’s other assets into account? If the trust is
unclear, the trustee may consider filing a complaint for instructions
to protect against a claim by the beneficiary disadvantaged by the
trustee’s decision. Seeking a judicial determination of the proper
interpretation of the trust is critical because a mistake of law in
interpreting a trust is not a defense in any subsequent litigation, and
acting contrary to the terms of the trust is a breach of the trustee’s
fiduciary duties. An additional advantage to a complaint for
instructions is that the trustee generally is able to have his reasonable attorneys’ fees and costs paid from the trust.
As your client’s CPA, you are familiar with your client’s financial
affairs. That being said, it is unlikely that as a CPA you also are a
professional investment manager. To the extent you hold yourself
out as having special skills or expertise in this regard, in your role as
trustee, you will be held to the standard of one who, in fact,
possesses such skills or expertise.
More likely than not, however, if you take on the role of trustee, you
will need to engage another professional to manage the assets of the
trust. While a trustee may be permitted to delegate the investment
of the trust’s assets, a trustee nevertheless retains a variety of duties.
Among other things, a trustee must personally define the trust’s
investment objectives, exercise reasonable care in selecting an
investment manager and adequately supervise the investment
manager.
Duty of Impartiality
Conflict arising from the competing interests of the income beneficiary and those beneficiaries who are entitled to the trust property
upon the termination of the income beneficiary’s interest in the
trust (“the remaindermen”) is a common scenario that often can
test another one of a trustee’s fundamental duties – the duty of
impartiality. The duty of impartiality requires a trustee not to favor
one beneficiary over another unless directed by the terms of the
trust. Instead, a trustee must remain neutral and not advocate for
any particular beneficiary or class of beneficiaries. The challenge
often arises where a trustee must determine the standard of living
to which the income beneficiary is entitled. The trustee is in the
unenviable position of potentially being viewed as too stingy by the
income beneficiary or profligate by the remaindermen.
26
www.MSCPAonline.org
We speak IRS & DOR. Fluently.
For more than 13 years,
Matthew J. Previte CPA PC has
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individuals and businesses. So
firms like yours don’t have to.
By partnering with us, you can
help your clients in debt with
the IRS or DOR while avoiding the huge learning curve that
destroys your profitability and increases your risk of potential
malpractice.
Your clients get a locally based expert here in Massachusetts
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Visit www.taxproblemsrus.com for video & written testimonials.
Clients receive a free initial consultation. Call 508-655-1500.
Matthew J. Previte, CPA PC - Natick, MA
email: [email protected]
TRUSTEE
Conclusion
Duty to Account and Inform
A trustee has a duty to account to the beneficiaries. The beneficiaries of an irrevocable trust are entitled to be reasonably informed
about the administration of the trust so they are able to protect
their interests. Having your accounts judicially allowed on a regular
basis benefits you as trustee because allowance of accounts
discharges a trustee from any liability for transactions covered by
the accounting. Once allowed, accounts generally cannot be
questioned in collateral proceeding in law or in equity, absent fraud
or manifest error, and only rarely are re-opened. In Massachusetts,
for example, Section 7-307 of the Uniform Probate Code
establishes both a statute of limitations (six months) and a statute of
repose (three years) for claims against a trustee by a beneficiary
who has received a final accounting.
Given the often complex duties of acting as trustee, as well as the
potential liability arising from a breach of those duties, it is important that trustee positions not be viewed as another service to offer
clients; that is, a way to “add value” to the client relationship. To that
point, before taking on the role of trustee, consult with your insurance carrier regarding coverage for claims arising out of your work
as a fiduciary. You will want to be certain that you have coverage for
your acts as trustee. If your malpractice insurance does not provide
coverage, consider obtaining a separate errors and omissions policy
that will provide the needed coverage. In the end, the decision to act
as trustee should be the product of considered judgment, weighing
all facts and circumstances that counsel for and against assuming
this role.
Mark S. Furman is a shareholder and chair of the Litigation
Department at Tarlow Breed Hart & Rodgers PC in Boston.
He has over 30 years of experience representing clients in
litigation, including trust and estate disputes.
Emily C. Shanahan is of counsel at Tarlow Breed Hart &
Rodgers PC in Boston. She concentrates her practice in
litigation, including trust and estate disputes.
Trustees have a further duty to inform and communicate with
beneficiaries. A trustee’s duty to communicate is two-fold: It
includes an affirmative obligation to inform beneficiaries of certain
information, as well as an obligation to respond to beneficiaries’
reasonable requests for information about the trust. That duty
encompasses, among other things, informing a beneficiary of the
existence of the trust and of the right to request a copy of the trust.
Duty to Carry Out Terms of Trust
While it may seem an obvious point that a trustee should not act in
contravention of the terms of the trust, avoiding such potential
liability could at times be difficult in practice. Maintaining an
existing relationship with a settlor or beneficiary of a trust who also
is a client has the potential to place significant pressure on a CPA
who takes on the role of trustee. For example, what do you do if the
settlor, who also is your long-term client, approaches you in your
role as trustee to make a loan from the trust, but the trust does not
authorize the trustee to make such a loan? If you agree to the
request, you would breach both your duty of loyalty and your duty
to carry out the terms of the trust. Accordingly, it is critical that
upon accepting the role of trustee, you read and understand the
terms of the trust, and then revisit the terms of the trust before
taking any action that is not obviously within the scope of your
responsibilities and authority as trustee.
sumnews Spring 2011
27
classifieds
Positions Available
Mattapoisett Accounting Firm
seeks CPA with minimum of
three years experience in public
accounting for position within
our Mattapoisett, MA office.
Excellent opportunity for
individual that is self-motivated,
positive minded and able to
work independently. Full time,
permanent, part time or per
diem o.k. To be considered,
please send detailed resume
outlining work history (three
years minimum in public
accounting) plus salary requirements and references to:
[email protected].
NO CALLS OR RECRUITERS
PLEASE.
South Shore CPA Firm Growing
and progressive CPA firm with
clients in various industries has
opportunities for entry level,
senior accountant and manager
positions to provide audit, tax
and consulting services. Please
contact us if you are looking for
an interesting and energetic
environment with a team of
professionals dedicated to
quality client service on the
South Shore. We offer flexibility,
competitive salary, excellent
benefits package including
401(k) with employer match,
health, life and disability
insurance and health club
membership. Please send your
cover letter and resume to
Human Resources, Leonard,
Mulherin & Greene, PC, 625
Grove Street, Braintree, MA
02184; (f) 781.356.5800;
[email protected].
CPA FIRM: Progressive Braintree
CPA/Business Consulting firm
with sophisticated clients from
various industries, is seeking
Entry and Senior level Accountants, and Managers for audits,
consulting engagements, tax
planning and return preparation.
Competitive salary and comprehensive benefits package
including 401k, profit sharing
plan, health, life and disability
insurance. If you are looking for
an exciting work environment
with excellent growth opportunities, please forward your
resume to: Schneider, Schneider
& Associates, P.C., 35 Braintree
Hill Office Park, Braintree, MA
02184; (f) 781.849.6772;
[email protected].
Paul Kunin Consulting Accounting careers can be a minefield of
conflicting interests, aspirations,
and needs. Finding the right
work situation at each career
stage involves identifying what
you want, uncovering opportunities, and executing a strategy to
seize them. At Paul Kunin
Consulting, we combine an
28
www.MSCPAonline.org
intimate knowledge of the
accounting profession with
wide contacts in the field to
find experienced New England
finance professionals the
position that’s right for them.
You will be assured personal
and confidential service few
other recruiters can offer. For
more information, call or email
Paul Kunin at (617) 232-4500,
[email protected].
Carey & Company, PC is a
multi-service forensic accounting and certified public
accounting firm with a staff of
professionals who have many
years of experience providing
litigation support and forensic
accounting services. We are
interested in hiring qualified
professionals with a minimum
of one to three years experience to join our growing firm.
The right candidates with more
experience will also be given
consideration. Individuals must
be CPAs or CPA candidates.
Please refer to our Web site for
more information:
www.careycpas.com. Please
mail, e-mail or fax resume to us
at 20 Winthrop Square, Boston,
MA 02110; [email protected];
(f) 617.523.9292.
PARTNER/MANAGER – Tax or
Audit: We are looking for an
entrepreneurial
partner/manager with portable
clients. If you want to find a
comfortable home for your
practice, we would like to talk
with you about joining our
27-person firm in Newton. We
can provide a terrific opportunity and a comfortable firm
culture where people look
forward to coming to work.
Feel free to talk with us in
confidentiality by contacting
Stephen Bonder of Friedman
Suvalle & Salomon, PC at
[email protected].
Greenberg, Rosenblatt, Kull &
Bitsoli, PC a Regional CPA firm,
has career opportunities
available in the following areas:
Tax Manager w/ international
experience; and
Senior/Supervisor A&A.
The right candidates must be
CPAs with a minimum of 3 years
recent directly related experience in public accounting. We
offer a highly competitive salary
and fast track opportunities.
Our benefits include 401(k) and
profit sharing plans, health, life
and disability insurance, tuition
reimbursement, continuing
professional education,
flex-time, and a cafeteria plan
for medical and childcare
expenses. Please forward cover
letter and resume to: Greenberg, Kull & Bitsoli, PC, Attn:
Not-For-Profit TECHNOLOGY EXPERTS
Specializing in Nonprofit Accounting Software
CERTIFIED RESELLER OF:
AccuFund®
■ The Financial Edge®
■
By Blackbaud
■
Blackbaud FundWare®
Contact Jim Clarkson at (877) 755-0745
or [email protected]
Mission-Oriented Solutions for the Public Sector
www.NESandS.com
KST, P.O. Box 15034, Worcester,
MA 01615-0034; [email protected];
(f)508.799.2059.
PARTNERSHIP OPPORTUNTY Natick firm seeks CPA to initially
share office space and then to
become a partner in our firm.
Great location and excellent
facilities. Ideal for CPA starting
their own business or looking to
move from their home. Please
contact Sharon or Carol at Burke
& Raphael LLC, 209 West Central
Street #117, Natick, MA.
508-653-0018.
Edelstein & Company LLP, a
Regional CPA firm, with over 40
years of certified public accounting experience has career
opportunities available in the
following areas:
• Tax Senior Manager
• Audit Senior
•Associate/Supervisor
Candidates must be CPA’s with
public accounting experience.
At Edelstein & Company, we
have built a tradition of encouraging creativity, innovation and
teamwork. We offer employees
an excellent work environment
and a competitive compensation
and benefits package. Please
refer to our website for more
information at
www.edelsteincpa.com or email
your resume to us at
[email protected].
Experienced Accountant New
England’s largest regional
accounting, tax and business
consulting firm is seeking two
accountants with two to five
years of recent public accounting
experience in our Rockland, MA
office. Desirable candidates
should be looking for career
advancement with a firm that not
only appreciates, but actually
practices work/life balance, while
providing superior service to a
diverse and successful client
base. Requirements: Good
communication skills, creative,
motivated, ability to supervise
and review engagements,
not-for-profit industry and yellow
book experience required for
one of these roles, CPA certification a plus. We offer: competitive salary, great benefits,
stimulating team environment,
professional growth and
development, leading edge
technology. EOE Please apply
through the following link:
https://home.eease.com/recruit/
?id=566940.
Mergers/Acquisitions
Acquisition/Merger Opportunity: Join forces with a leading
New England CPA and Business
Advisory firm actively seeking
young, progressive niche
practitioners/small firms or
succession minded partners
interested in merging. Abrams
Little-Gill Loberfeld PC (ALL) is
an innovative, full-service firm
combining cutting edge
technology with a range of tax,
audit, accounting and business
advisory services. Our professionals work with closely held
business owners, high net worth
clients, individuals and nonprofit organizations, with an
emphasis on high quality client
service. We welcome interested
inquiries. All replies held in
strictest confidence. Please
contact Ron Loberfeld, CPA,
ALL, 1330 Boylston Street, FL 5,
Chestnut Hill, MA 02467;
617.738.5200; [email protected].
MERGER/ACQUISITION: We are
looking to expand our 27 person
Newton firm with existing
practices whose owners would
like to be a part of a larger
entrepreneurial firm. We are a
progressive, full service firm
providing attest, tax and
business advisory services. We
welcome niche practices as well
as non-specialized complementary practices. All inquiries will
be held in the strictest
confidence. Please contact Steve
Schwartz, Friedman, Suvalle &
Salomon, PC, at 617.641.0040;
[email protected].
CLASSIFIEDS
Achieve Your Retirement Goals
With Us Established CPA firm
desires to acquire accounting
and tax practice from CPA
retiring within 5 years. We offer
accounting and tax services to
private businesses in diverse
industries. We know the
challenges that growing
companies face and provide
creative thinking to help our
clients take advantage of
opportunities and avoid pitfalls.
We provide continuous interaction with our clients throughout
the year and prompt responsive
service at all times. If you
operate likewise, please contact:
Gerald M. Tulis, Tulis, Miller &
Company LLP, 313 Congress
Street, Boston, MA 02210-1218;
617.946.9118 or
[email protected]. All replies
are strictly confidential.
PARTNERSHIP – Do you have an
existing client base? If so, our
Natick CPA firm can provide a
fantastic opportunity for you to
build your practice and become
the next generation partner.
Great space. Contact Sharon or
Carol at Burke & Raphael LLC,
209 West Central Street #117,
Natick, MA. 508-653-0018.
ACQUISITION/RETIREMENT IN
NEAR FUTURE Established CPA
firm located in Chestnut Hill is
very interested in acquiring or
merging with practitioner(s) who
would like to retire in the near
future. Our history of past
transactions has been successful. Respond in confidence to
Norman P. Posner, CPA Samet &
Company PC, 1330 Boylston
Street, Chestnut Hill, MA 02467;
617.731.1222; (f) 617.734.8052;
[email protected].
WE ARE YOUNG ENTREPRENEURS – If you are a partner in a
firm that is seeking young
owners to eventually take over
your practice when you and your
other partners retire, please
contact us. We are presently
partners or managers in small
local firms located in the
Lexington to Wakefield area. We
have decided to come together
by merging into, and taking
over, a retirement minded
practice in the $1M to $3M
range. We are a pleasant well
financed group of people. To
discuss this in complete
confidence, please contact our
advisor, Stephen Weinstein, CPA
at 203-483-6664, or at
[email protected].
Greenberg, Rosenblatt, Kull &
Bitsoli, PC, a well-established
CPA firm located in Worcester, is
interested in acquiring quality
accounting and/or tax practices.
We provide a full range of audit
and accounting, tax, estate
planning and trust administration, management advisory, and
business valuation and forensic
services. We take pride in
offering the high-quality client
service found in smaller firms,
while also being able to provide
the additional resources and
expertise of a larger firm. Please
respond in confidence to Agnes
E. Kull, CPA, Greenberg,
Rosenblatt, Kull & Bitsoli, PC,
306 Main Street, Worcester, MA
01615-0034;
[email protected].
PRACTICES FOR SALE &
WANTED THINKING OF
SELLING YOUR PRACTICE?
Accounting Practice Sales is the
leading marketer of accounting
& tax practices in North
America. We have a large pool
of buyers, both individuals &
firms, looking for practices now.
We also have the experience to
help you locate the right fit for
your firm and negotiate the best
price and terms. To find out
more about our risk-free and
confidential services, call
Bradley Holmes with The
Holmes Group at 1-800-3970249 or email
[email protected].
INTERESTED IN BUYING? See
our listings and register for free
email updates at
www.accountingpracticesales.com
or call 1-800-397-0249.
Sharkansky, LLP - We are an
established firm interested in
acquiring a quality accounting
and tax practice located south
of Boston whose owners are
planning to retire in the near
future. We are a progressive full
service firm committed to
providing those services with
the highest level of attention.
Please respond in complete
confidence to Scott Estabrooks,
Sharkansky, LLP, 1350 Belmont
Street, Brockton, MA 02301 at
(508) 313-2338 or
[email protected].
PRACTICES FOR SALE
THROUGHOUT MASSACHUSETTS & NEW ENGLAND: (1)
NH - Concord, CPA firm, Gr.
$233,000, (2) NH - Concord,
CPA firm, Gr. $166,000, (3)
Maine - Northern, accounting
practice, Gr. $60,603, (4) Maine
- Bangor, tax practice, Gr.
$75,000, (5) Vermont - Northern VT, CPA firm, Gr. $110,000.
(6) New York – Upstate NY, tax
practice Gr. $31,339. Are you
interested in buying or selling a
CPA firm? We specialize in the
purchase, sale, and merger of
CPA firms throughout the New
England states. Based in Boston
we offer local knowledge
combined with an extensive
database of local buyers and
sellers. To arrange a no obligation confidential consultation,
contact Patrick O’Riordan
directly @ 1-888-511-1040.
Online at:
www.WorldwidePracticeSales.com.
Acquisition Opportunity for
CPA Firms with Retirement
Minded Partners: Costantino
Richards Rizzo, LLP located in
Practices for Sale
Throughout Massachusetts
Patrick O’Riordan
1-888-511-1040
www.WorldwidePracticeSales.com
Wakefield, Mass, seeks to
acquire a well established CPA
firm located North of Boston
with revenues of $500,000 to
$1,500,000. Our firm has a solid
infrastructure, state of the art
systems and procedures, strong
personnel and a reputation for
high quality work. We are well
positioned to ensure a successful transition of a practice with
retirement minded partners.
Please respond in confidence to
Paul E. Costantino, CPA, MST,
Costantino Richards Rizzo, LLP,
545 Salem Street, Wakefield, MA
01880; 781.279.7788;
[email protected].
Merger Established Boston CPA
firm seeks to merge their clients
into a well established tax and
audit practice. Fees of approximately $2.3 M are generated
between tax, audit and accounting services. Most principals
look to retire within the next 2 to
5 years. Interested parties
should respond to MSCPA
Confidential Box #190, c/o Julia
Bowker, 105 Chauncy St, 10th
floor, Boston, MA 02111;
[email protected].
Unique Opportunity in
Northern Worcester County
Retirement focused practitioner
looking for multi-year transition
plan for well-established tax,
audit and accounting practice.
Firm’s gross revenues average
over $500,000 annually. For a
confidential discussion, please
respond to MSCPA Confidential
Box #170, c/o Julia Bowker, 105
Chauncy St, 10th floor, Boston,
MA 02111;
[email protected].
SOUTH SHORE/BOSTON
MERGER - Are you a sole
proprietor (or a two partner firm)
looking for the resources of a
larger firm to provide retirement
protection, technical support,
staff resources, substantial
growth or other benefits? We
are one of the longest established firms in the greater
Boston area, and are looking to
diversify our practice by
acquiring, or merging in, a niche,
“small business”, or tax practice.
We seek a firm with gross
volume of between $500,000 to
$1,000,000, that can become an
important part of our practice.
To learn more about us, please
see our website, www.ocd.com.
To discuss this, in complete
confidence, please call or e-mail
Mark Dow, Managing Partner,
O’Connor & Drew, P.C., 25
Braintree Hill Office Park, Suite
102, Braintree, MA 02184 at
617.471.1120 or [email protected].
Miscellaneous
OVER 1,300 QUICKBOOKS
IMPLEMENTATIONS Kimberly
Adams will provide setup,
training and telephone support
for your clients.
www.adamsconsultinginc.com or
781.433.0807.
PEACHTREE CONSULTING,
SUPPORT & TRAINING for your
firm and your clients. North Star
Ventures, Inc. is the largest
Peachtree support group in New
England, with five Sage
Software Small Business
Certified Consultants for
Peachtree on staff, two offices
and over 20 years of experience.
We can assist in Peachtree
setup, implementation, on going
support, ACT! 2010 integration,
Simply Accounting and Crystal
Reports. New Premium Support
service is provided via Remote
Access "Dial-In" computing.
Hands-on 2-day classroom
training sessions are offered
each month in Andover and
Sharon, MA. Contact us at
www.nostar.com;
[email protected];
978-470-0799 ext. 12.
QUICKBOOKS SUPPORT,
CONSULTING & TRAINING for
your company and your clients.
North Star Ventures, Inc. can
assist in the QuickBooks setup,
implementation and on going
support with our certified
support staff. Our Premium
Support Service is provided via
Remote Access "Dial-In"
computing. Contact us at
www.nostar.com;
[email protected]; 978-470-0799
ext. 12 and [email protected];
978-470-0799 ext. 19.
sumnews Spring 2011
29
CLASSIFIEDS
Peer Review
Your Firm Will Benefit Greatly
from Outsourcing Technical
Review & Inspections Keep up
with changing professional
standards and reduce risk by
adding an experienced resource
to your firm. With 30 years
experience with closely held
businesses, I customize technical
support for sole-practitioners,
small and medium-sized firms. I
support your firm, not compete
with it. You’ll also benefit from
my 15 years as peer review
program technical director, to
help navigate through this
requirement. Improve quality
and gain the time to add value
to your clients’ businesses.
Contact Jack Goldberg, CPA for
a free consultation:
617.303.2416;
[email protected].
PEER REVIEWS Experienced in
review for both MA Society and
the NE Peer Review systems.
Other services available include
merger and acquisition consulting, partner dispute resolution
service, and team building.
Member EBPAQC and GAQC.
Call Tom Quin, QRGA, LLP, to
chat about your needs;
781.551.0040.
PEER REVIEW On and off site
reviews. Experienced with all
size firms. Pre and post issuance
reviews and inspections. In-firm
consulting with respect to
financial statements and
accountants reports. Call
Richard DelGaudio, CPA, at
978.667.4609.
PEER REVIEWS Experienced
reviewer for on-site & off-site
reviews, as well as
inspections/monitoring. Contact
Michael Rurak of Roy & Rurak,
LLC, 158 Pleasant St, North
Andover, MA 01845; (p)
978.409.6180; (f) 978.409.6183.
Peer Review Siegrist & Cree is
an experienced reviewer for
systems reviews, engagement
reviews and interim annual
inspections/monitoring. We will
tailor the peer review to
highlight your strengths and to
offer recommendations to
highlight your strengths and to
offer recommendations to
improve efficiency. We understand the many issues local firms
face in today’s accounting
environment. Please call Michael
J. Alessandri, CPA to discuss
preparation for your next review.
Michael J. Alessandri, CPA,
Siegrist & Cree, CPAs, PC;
781.237.4620 ext. 115; (f)
781.235.8021; or e-mail
[email protected].
PEER REVIEWS AND INSPECTIONS Extensive experience
providing these services to all
size firms for over ten years. Pre
and post issuance reviews. We
know the compliance issues of
small and medium sized firms.
Contact Ed Mann, E. L. MANN,
PC 1290 Worcester Road,
Framingham, MA 01702,
508.872.4400;
[email protected].
Bigger is Better
Peer Reviews Call an experienced firm. Our experience
results in a professional,
competent and economical
review. Call Charles Comtois at
Sullivan Bille, PC, 600 Clark
Road, Tewksbury, MA 01876;
978.970.2900;
[email protected].
Peer Review CPA Firm in Lowell
area, MA, has extensive
experience with all size firms
concerning on and off-site peer
reviews. Understand problems
faced by local firms today.
Maximize efficiency while
maintaining high standard of
quality. Competitive fixed rates.
Contact Loiselle & Associates,
PC, at 978.649.2204;
[email protected].
Peer Reviews Thomas P. Kirwin,
CPA, has performed many peer
reviews and provides an efficient
review that adds value to your
firm's quality control system. Let
us put together your next peer
review team or perform your
next inspection. Call Tom to
discuss your review or inspection. Thomas P. Kirwin, CPA, PC,
170 Main St Ste 111, Tewksbury,
MA 01876; 978.851.8111;
[email protected].
Accounting Practice Sales is North
America’s leader in sales because
we know how to navigate today’s
tricky financial market.
When you decide to sell your
practice, remember APS got to be
the biggest because we earned it.
We are the best at what we do!
Bigger is Better!
Call Bradley Holmes today!
The Holmes Group
Call 1.800.397.0249
www.AccountingPracticeSales.com
[email protected]
NORTHÊAMERICA'SÊLEADERÊINÊPRACTICEÊSALES
e’ll assist you.
Maximize your firm’s finances to
work smarter and more efficiently.
FINANCIAL SERVICES FOR ACCOUNTANTS
Webster offers a tailored package of financial services to help you manage your
costs and run your practice more efficiently. We can offer your firm business
checking account options suited to your needs, and competitive rates on
business credit lines1 to manage your firm’s cash flow. For more information,
contact Mary Stuart Kilner at 401.228.2045 or [email protected].
WebsterBank.com
All credit products, pricing and overdraft protection are subject to the normal credit approval process. Some applications may require further consideration and/or supplemental
information. Certain terms and conditions may apply. SBA guaranteed products may also be subject to additional terms, conditions and fees. All loans/lines of credit require a Webster
business checking account which must be opened prior to loan closing and which must be used for auto-deduct of payment.
The Webster Symbol and Webster Bank are registered in the U.S. Patent and Trademark Office.
1
We’ll Assist You - MA CPAs
30
Studio Number: 009482011
www.MSCPAonline.org
Ad Code: WFC-BPB-2012
3/16/2011
GD: Jessie
Sumnews
Size: Half Page (7.5” x 4.875”)
Color: BW
MM: Joanne Renna
Webster Bank, N.A.
Member FDIC
TAKING A
MEMBER SPOTLIGHT
1. Why did you toss your office chair, opting to stand
all day?
To me, being an active accountant is about striking a
balance with my personal goals and professional life. With
our profession being extremely sedentary, the challenge to
be active can seem daunting. After having read several
articles about how bad sitting all day was, it seemed like an
easy experiment (all I really had to do was stand, how hard
would that be?).
2.You started this experiment in January 2011. How
long did it take to adjust to your new work
environment?
The
he first week was strange. I have breakfast after arriving in
the morning, so standing while eating was certainly different. One of the benefits was that I rarely felt the afternoon
lull that usually happens between 2 and 4 p.m.
3.How did you reorganize your office?
At the start, I used a bookshelf for my computer monitors
and keyboard. Then I realized that the TV stand that I was
using for a standing workspace would be perfect for my
computer and writing. After two months, I bought a “fatigue
mat,” basically a rubber pad that you see at the airport for
TSA agents, to help relieve my tired feet. The whole thing
cost about $60.
4.What was the reaction from your co-workers
and how did you justify it to your superiors?
It was funny, trying to create a stand-up office on the cheap
meant I didn’t have too much resistance. I’m also lucky to
have an office, so my experiment wouldn’t affect other’s
work environments. My coworkers were intrigued and
interested to see if it would work. However, I got teased
frequently when I’d be sitting in the lunchroom or out at a
client.
5.What’s changed since you started standing?
When I sit for long periods of time now, my shoulders and
back get tight. I naturally hunch over the computer, but with
standing, my posture was much better. When coworkers
come into my office, they are forced to stand too. It is easier
to look at work papers or tax returns together because
nobody is standing over my shoulder. The long hours of tax
season were my biggest challenge because I had trouble
concentrating after 5 p.m.
, CPA
born LLP
n
a
S
pany
than
Jona ein & Com
t
s
l
e
Ed
6.As a triathlete and someone who runs to work
(Sanborn works in Boston and lives in Somerville),
you are athletic. Do you need to be athletic?
This was perhaps the most interesting side effect of the
experiment. I don’t think being a runner made standing all
day easier. The hardest part was mental and having been
conditioned over so many years of sitting while at work. I
truly believe anyone could do this without any significant
athletic background.
7. How has this endeavor affected your work?
Overall, I don’t think it’s affected my work product either
way. I felt a bit more focused when standing, but it became
increasingly challenging to work on lots of complex tax
returns all day. When critically thinking, my natural tendency
is to sit. I think once I break this association (hard thinking =
sitting), standing will feel a bit more natural when doing
complex tax returns and financial statements. After the first
month, it just felt natural to be standing.
8.Would you recommend that other CPAs switch to
standing? Why?
Yes, because I believe changing your physical surroundings
helps one think differently and to notice new things about
your work that may have become routine. It’s not a replacement for being active outside the office, but I’ve found it to
be a way to bridge the gap and try something new. Stand
on my friends.
Sanborn writes about his experiment in the “Tales of the Active
Accountant” articles, which are published on the MSCPA website.
Read part three of his journey today:
http://www.mscpaonline.org/activeaccountant.
sumnews Spring 2011
31
sumnews
MSCPA
105 Chauncy Street
10th Floor
Boston, MA 02111-1742
617.556.4000
800.392.6145
Fax 617.556.4126
MSCPAonline.org
New Member Benefit: FedEx
MSCPA has teamed up with FedEx to help boost your bottom line. As a MSCPA member, you
are now eligible to receive valuable discounts of up to 29% on select FedEx Express® and FedEx
Ground® shipping. Visit www.mscpaonline.org/FedExBenefit (enter passcode DDWCGS)
Join the MSCPA’s
TOASTMASTER
CLUB Master the art of public
speaking and set yourself
apart when you are:
Giving client
presentations;
Conducting educational
seminars; and
Addressing industry
organizations.
The MSCPA Toastmasters
Club meets June - Dec. on
the second and fourth
Wednesday of the month
from 6:00 - 7:00pm in
Boston. Come to the demo
meeting on May 25 to learn
more about the Club.
Visit www.MSCPAonline.org/toast
CPA
dAY of Service
friday, June 17
For more information
visit: www.mscpaonline.org/dayofservice
or email Kara Kieran,
[email protected].
This event, developed by the MSCPA's
Young
Professional
Community
Service Committee, offers a great way
for CPAs across the state to unite and
positively impact their communities.
Firms, companies and individuals are
encouraged to volunteer for a
community organization of their
choice, and are able to tailor the event
to fit any schedule — whether
committing to a whole day or just a
few hours. Clean up the local park,
visit a school, hold a clothing drive,
serve lunch at a food bank or donate
blood.