MAP Breakfasts Gather Leaders to Discuss Top Issues Impacting CPA Firms

More than 30 CPA firm leaders are gathered at the Richmond CPA Center this morning to discuss top issues affecting firms. It’s this year’s second Virginia Society of CPAs (VSCPA) Management of an Accounting Practice (MAP) Breakfast, the first of which was held yesterday morning in Northern Virginia.

On the agenda? The results of the latest American Institute of CPAs (AICPA) Private Companies Practice Section (PCPS) CPA Firm Top Issues Survey.

The discussion has been great this week. Here are some of the highlights:

• Staffing has been the dominant issue for many firms over the last decade, but for the first time in several years, staffing isn’t the number one issue in the PCPS CPA Firm Top Issues Survey. For sole practitioners, tax complexity isn’t the number one issue, as it has been in recent years. Although results varied based on firm size in the last survey, conducted in 2007, the 2009 survey now has the same top issue for all size firms — client retention. No doubt the economy has something to do with this result. Other common issues include technical complexity, succession planning, marketing to new clients and human capital.
• Based on the results, most firms, no matter size, felt the recovery won’t start much before 4th quarter 2009 with the majority being in 2010.
• Across all sizes and categories, firms expect A/R strain and reduction of revenue will most impact them.

Learn more about the survey results online at www.vscpa.com.

Countdown to 2010 Session

It’s that time again! The Virginia General Assembly convenes January 13, and VSCPA volunteer members and I have been hard at work identifying potential legislation that could impact Virginia CPAs or their clients. We will continue to monitor those bills and others that pop up throughout session and take action as needed.

In addition, the VSCPA pursues an aggressive legislative and regulatory agenda each year to protect the CPA profession and designation in Virginia, and this year is no different. Check out the VSCPA’s 2010 agenda to see what we’re tackling now.

Currently, the VSCPA is working with long-time VSCPA member Sen. Walter Stosch, CPA, to introduce two pieces of legislation in the upcoming session:

• Conformity: Each year, the VSCPA advocates for the quick passage of legislation to conform Virginia’s tax code to the federal tax code. This year is no different. Except the VSCPA’s bill would move the conformity date forward two years to make it a prospective date rather than a retroactive date, as has been used in the past. Additionally, it incorporates a threshold impact component, which will create some protection for Virginia from federal changes that could have a significant negative impact on tax revenue in Virginia.
  
• Penalties on pass-through entities: The VSCPA’s bill separates the pass-through entity penalty structure into two separate penalties: failure to file and failure to pay.

Finally, the VSCPA will be hosting CPA Day 2010 at the Virginia General Assembly on Tuesday, January 19, from 7:30 a.m. to 3 p.m. at the Virginia State Capitol. It’s not too late to join us! Represent the CPA profession at the Virginia General Assembly by engaging your legislators. Sign up by January 12, and help us ensure our legislative goals are met. Can’t make it? We’ll be tweeting live from the General Assembly that day, so stay tuned to @VSCPANews on www.twitter.com.

Great news to start off the new year! As of December 30, 2009, the VSCPA’s retention rate was 95.39 percent, up from last year’s rate of 94.02 percent. As the VSCPA’s membership year ends April 30, that rate could potentially increase.

What’s more, the VSCPA’s retention rate is exceeding industry standards. According to 2009 data published by the American Society of Association Executives (ASAE) & The Center for Association Leadership, the mean retention rate for individual membership organizations is 83 percent, and the median is 87 percent.

It’s important to bring new members into the fold, but equally important to ensure members return year to year. The high retention rate indicates members are satisfied with their overall membership experience and find value in maintaining their membership, which is good news for the organization. The stronger the membership, the greater the impact the organization can make.

Due to recruitment and retention efforts combined, this community has hit an all-time high — 8,900 members! That’s cause for celebration!

Through a commitment to research and gathering member feedback, the VSCPA continuously strives to ensure members’ needs are being met. If you have feedback on VSCPA programs, services or events, never hesitate to contact any of us directly with your thoughts.

Write, Text, Call or Come By?

We’re now well into the 21st century and communication technology has made it possible to choose any number of ways to interact. As a writer, I spend most of my time trying to convey ideas to audiences of varying size without much feedback. In my former life as a sales person, I valued the face-to-face and phone interactions that gave me the opportunity to consult and converse with potential customers. We all face several chances each day to share, trade or discuss information with a variety of people ... are you making the most of the opportunity?

Take a look at this article: The Five Levels of Communication in a Connected World. I’m not sure that five is the correct number to classify communication (with the speed technology develops it's probably 20 by now), but the article does have some good points about using the correct communication medium for a situation.

New CPA Regulations Are Now In Process!

We are pleased to report that after months of development, revised regulations governing CPAs in Virginia have been submitted into the “fast-track” regulatory process by the Virginia Board of Accountancy (BOA).

The VSCPA has issued official comments to Gov. Tim Kaine on the proposal, but you can read a recap of the regulations here.

In our comment letter, it’s clear we fully support the BOA’s proposal, and we’d like the state government to push these through the regulatory process as quickly as possible. Right now, conflicts between the statutes and regulations are confusing to Virginia CPAs and creating a lot of questions about the current rules for practicing public accounting in the Commonwealth.

We take our responsibility to advocate on your behalf very seriously at the VSCPA. Our leaders and staff want to ensure your needs, as a CPA regulant who must follow Virginia law, are adequately represented and spoken for.

If you have any questions about the regulations and the VSCPA’s role in the process, feel free to contact me at speters@vscpa.com or (804) 612-9423. VSCPA Government Affairs Director Emily Walker can also answer your questions at (804) 612-9424.

A PR Plan: Celebrating Financial Literacy Successes Through Virginia Media

When Gov. Tim Kaine signed into law the new Virginia high school graduation requirement of one credit in economics and personal finance, it was cause for celebration for Virginia CPAs. Here at the VSCPA, it marked a major victory six years in the making; for the past several years, the requirement was so important that it was on the VSCPA's legislative agenda.

We began talking about ways to get this exciting news out to the public. During a recession, we felt it was more important than ever that parents knew their children would be required to learn valuable money management skills before graduating from high school.

We also wanted to get the word out about the tremendous member support we had for this issue. During the Virginia Board of Education's comment period for the new requirement in 2008, 329 comments were submitted — primarily from VSCPA members and members of the Virginia Jump$tart Coalition for Personal Financial Literacy (a group spearheaded by the VSCPA in 2005). The Virginia CPA community spoke, and the VBOE listened. The VBOE indicated the comments were a key factor in their decision to incorporate the course into graduation requirements.

VSCPA Vice-President of Member & Public Relations Tina Lambert, CAE, was the perfect voice for this issue. She is currently on the Virginia Jump$tart Board of Directors and served as its chair from 2005– 2008.

We sent an opinion/editorial piece written by Tina, "Teaching Virginia's Children Some Cents," to several media outlets, and were thrilled that it was run in the Greater Richmond Chamber of Commerce's e-newsletter, as well as a national e-newsletter from WebCPA.

So when an article in the Richmond Times-Dispatch on December 10, 2009, "Mandatory Course Raises Concerns," brought some school teachers' and administrators' problems with the requirement to light, we were prepared. We immediately sent a letter to the editor of the Times-Dispatch, e-mails to the article's reporters and editors and requests for space to send in our op/ed. We were excited when the editor upgraded our letter to an op/ed. With a few tweaks to our original commentary, our response to the Times-Dispatch was off and printed December 18.

Ensuring we are an advocate for the financial literacy of all Virginians remains a major priority for the VSCPA, and we will continue to spread this message to the media. It's just one of the ways we advocate for our CPA members and the issues they care about most.

To Be Successful, Make More Mistakes

That sounds a bit counterintuitive, but in a recent article by former CFO, John L. Daly, CPA, CMA, CPIM, about surviving an economic downturn, that’s the advice … and it’s sound. Daly emphasizes the wisdom of small evolutionary changes rather than large revolutionary transformations, and includes an insightful list of characteristics of companies that struggle in economic downturns.

The article is a five-minute read, but I took away a few really good nuggets regarding change, allocation of resources and the proper place for cost-cutting. Click here to take a look. Enjoy!