3Q2011 CPA Report

CPA ReportCPA ReportSouth Carolina Association of Certified Public Accountants

T h i r d E d i t i o n 2 0 1 1

Battle to Recruit and Retain Young Talent Not All About the Money

With Challenges Come Opportunities for South Carolina

Transitioning Staff Up the Ladder Vital to Firms Wanting to Span Generations

PLUS

South Carolina CPA Report 2 (888) 557-4814 | www.scacpa.org

Charleston 2430 Mall Drive, Suite 360 Greenville

843-884-3912 Charleston, SC 29406 864-245-8788

www.american-pensions.com

South Carolina CPA Report 3(888) 557-4814 | www.scacpa.org

In This Issue

In Every Issue

OfficersTimothy L. Baker, cPA, President

Michael r. Putich, cPA, President-elect

sharon e. Mann, cPA, Vice President

Malynda M. Grimsley, cPA, Secretary-Treasurer

charles e. “eddie” Brown, cPA, Past President

BOArD Of DirecTOrsWilliam R. Barefoot, CPAPatrick P. Carey Jr., CPA

Clarence Coleman Jr., CPA, Ph.D.Mark S. Crocker, CPA

Alys Anne Dennis, CPAJ. Bratton Fennell, CPA

Cheryl O. Lang, CPAPenny A. Lewis, CPA

A.D. “Dave” Masters, CPAJ. Patrick McDermott, CPA

James W. McIlrath, CPAPhilip R. Snipes, CPA

Michael J. Targia, CPA, CFARobert M. Tilton, CPABeth T. Zamorski, CPA

eXecUTiVe DirecTOr Erin P. Hardwick, CAE

MANAGiNG eDiTOrMaureen Taylor

GrAPHic DesiGNer Lisa S. McGee

cONTriBUTiNG wriTersApril Blake

Reva Brennan, MPA, CAE, IOMAmanda S, Colgate, CPA

John L. Daly, CPA, CMA, CPIMErin P. Hardwick, CAE

Mark T. Hobbs, CPA, CFFJ. Patrick McDermott, CPADebbie McDonough, CPA

Derrick B. Stark, CPAMaureen Taylor

V. Carroll Webster , CPAWalda Wildman, CPA

2011 eDiTOriAL BOArDCharles E. Alvis, CPA, MPA, MBA, Chair

Ellen K. Adkins, CPA, MBAJohn B. Brantley, CPA

Neil A. Brown, CPA, MAcc, CFPAmanda S. Colgate, CPA

Lisa S. Cooke, CPAErin P. Hardwick, CAEKaren A. Hursey, CPALesley H. Kelly, CPA

Margaret L. Lattimore, CPAMarsha G. LePhew, CPAAnthony G. Masino, CPAA. D. “Dave” Masters, CPA

Derrick B. Stark, CPAV. Carroll Webster, CPA, MBA

South Carolina Association of Certified Public Accountants Magazine

Volume 41, Third Edition 2011

Statements of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers or members of SCACPA. Advertising rates will be furnished on request to SCACPA, 570 Chris Drive, West Columbia, SC 29169, (803) 791-4181. Publication of an advertisement in The CPA Report does not constitute an endorsement of the product or service by The CPA Report or SCACPA.

CPA ReportSouth Carolina Association of CPAs

5 From the President6 Association News9 On Your Behalf 25 Board of Accountancy News 27 Member Profile Lynn Dantzler

7 South Carolina Represented at AICPA Governing Council Spring Meeting

8 2012 Brings Changes for Clarified Statement on Auditing Standards

15 IRS & SCDOR Want to Hear from You

20 SCACPA Celebrates CPA Day at the State House, Welcomes New CPAs

23 IFRS

24 Navigating the Road to Success with PIUs

29 Emerging Trends in Accounting: Corporate Sustainability

32 Women’s Rise in the Workplace: Three Key Areas of Development

34 The Productivity of Trustworthy Leadership

35 2011 CPA Summit & Annual Meeting

Features10 Economic Outlook: With Challenges Come Opportunities for South Carolina

14 Customer Service, Accountability Top Priorities for Templeton

16 Transitioning Staff Up the Ladder Vital to Firms Wanting to Span Generations

18 Battle to Recruit and Retain Young Talent Not All About the Money

28 Member News29 Welcome New Members31 Chapter Connections34 Upcoming CPE38 Classifieds/Advertiser Index

9

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Aon Insurance Services is a division of Affinity Insurance Services, Inc.; in CA, MN & OK, (CA License #0795465) Aon Insurance Services is a division of AIS Affinity Insurance Agency, Inc.; and in NY, AIS Affinity Insurance Agency.

One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2011 CNA. All rights reserved. E-5929-0411 SC

Endorsed by: Endorsed by: Underwritten by: Nationally Administered by:

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As a CPA, you work too hard to let a malpractice claim ruin your business.The AICPA-endorsed Premier Plan can provide your firm with broad coverage and a comprehensive risk control program designed to help your firm reduce its risk of claims. Our plan offers insureds:

• A risk control hotline with specialists who provide advice

• Training in three convenient formats: live seminar, webcast or online self-study

• Online policyholder resource center, which offers engagement letter guides, 14 sample engagement letter templates, case studies and other useful tools to assist your firm

In the event that you do incur a claim, the Program provides insureds experienced claims management. CNA, the Plan

underwriter, insures over 25,000 firms and has handled more than 14,000 accountants malpractice claims

and potential claims over the past 10 years.

NEW! 5% Premium Credit to AICPAPrivate Companies Practice Section

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E-5929-0411 SC_E-5929-0411 SC 3/23/11 10:32 AM Page 1

Timothy L. Baker, cPA, ciTP, cMA2011 SCACPA President

SCACPA member since 1994

While for many warmer weather may mean a slower pace, for the SCACPA staff and board there has been a flurry of activity.

On May 4, SCACPA held its annual CPA Day at the State House. The event offered an opportunity for SCACPA members to network with state legislators and constitutional officers.

Thirty-eight new CPAs were also welcomed into the profession during the Oath Ceremony. We are very excited to count these young professionals among our ranks. For more information on CPA Day, see the story on page 20.

Also in May, Pat McDermott, Michael Putich, Erin Hardwick, Reva Brennan and I attended the spring AICPA Council meeting in Washington, DC. Of particular interest, was the vote on the Global Chartered Management Accountant (GCMA) designation and the Blue Ribbon Panel on Private Company Financial Reporting. More information on both of these items can be found on page 7.

While at the AICPA Council meeting, we visited with the South Carolina delegation in the House and Senate to discuss issues of importance to the profession including tax strategy patent legislation, tax return due date reform, tax simplification and the Mobile Workforce State Income Tax Simplification Act of 2011. We also had an opportunity to discuss these issues with Barry Melancon, CEO/president of AICPA and AICPA Chair Paul Stahlin. It is important to point

out that not all of the SCACPA members were in support of all issues. I encourage you to make your voice heard on issues, whether you agree or disagree. Contact SCACPA at [email protected].

Speaking of making your voice heard, SCACPA members will have an opportunity to do just that at the 2011 Professional Issues Update. SCACPA staff is busy charting the course for this members-only exclusive, which brings four hours of CPE to eight locations around the state. Not only do you have an opportunity to hear about key issues affecting the profession, your feedback helps us identify and prioritize areas of importance to you.

Board members, staff and volunteers have also been working on strategic initiatives as part of the association’s goals for 2011-2016. The goals focus on CPE delivery and marketing; communication, marketing and branding; profession advocacy; young professionals; and association and governance structure. During the August board retreat, strategic plan goal leaders and board champions will offer updates on activity and share challenges and successes as well as next steps. I would like to thank all of the volunteers that have stepped up to serve and make SCACPA the organization we are today. Service is the backbone of our organization and there is always room for more. I encourage you to get involved and join a committee or task force. SCACPA is your organization. By volunteering you help to shape our future. For a list of opportunities, visit www.scacpa.org/getinvolved

In closing, please keep your fellow South Carolinians and Americans in mind and prayer. We have a large number of disasters that have occurred this spring, and many areas are still in recovery. n

Timothy L. Baker, CPA, CITP, CMA, is vice president of consulting for Blytheco, LLC. He can be reached at (803) 612-7500 ext. 2641 or via email at [email protected].

cPA DAY AT THe sTATe HOUsep from left: SCACPA Board Member Pat McDermott, SCACPA President Tim Baker, SCACPA Executive Director Erin Hardwick and Secretary of State Mark Hammond.


scAcPA receives Best in Business Awards The South Carolina Association of CPAs was recently honored with three Best in Business Awards (BIB) by the South Carolina Society of Association Executives (SCSAE). The BIB Awards Program recognizes outstanding association programs, projects, events and activities that member associations have accomplished during 2010. During the May 20 SCSAE Awards Luncheon, SCACPA was presented with awards in the Event Marketing, Public Relations and Newsletter categories.

Brennan Named Treasurer of scsAeSCACPA Associate Director Reva Brennan, CAE, IOM, was recently installed as treasurer of the board of directors for the South Carolina Society of Association Executives. The installation ceremony was held in conjunction with the society’s annual conference in June at the Hilton Head Marriott. Brennan previously served as director-at-large. SCSAE is an organization of chief executive officers and professional staff who manage a variety of trade, professional and nonprofit associations as well as companies that provide products and services to the association community.

Keep Us Up to Date and we’ll return the favor! Are you interested in cost saving programs and services? Professional development resources? Updates on legislative issues? At SCACPA, we communicate with our members in a variety of ways – email, mailings, social media and yes, even phone calls. To make certain you are up to date on the latest news, programs and services, keep us current with your most recent contact information. Log onto the website at www.scacpa.org and select “manage my membership” (under My Membership) to update your personal profile.

Can’t remember your log in information? Call April Blake at 803-791-4181 ext. 100.

welcome scAcPA’s Newest AdditionSCACPA Education Manager April Cox and her husband Taylor welcomed a daughter into the family on June 8. McKinley Grace entered the world at 6 lbs. 2 oz. Congratulations to the proud parents. April can be reached at [email protected].

cALL fOr VOLUNTeersGet More. Get involved. Join a scAcPA committee or Task force Today!SCACPA’s Board of Directors has made a commitment to becoming a more inclusive organization that provides increased opportunities for participation. With that in mind, we are conducting an open call for interested and qualified individuals to contribute to the future growth and success of SCACPA.

Whether you’re looking to share your skills, gain practical experience, enhance your career, build your contacts, or give back to the profession, SCACPA relies on you to help make a difference for South Carolina’s accounting profession. When you choose to volunteer, you will get more from your membership. Just tell us how you would like to get involved.

This is your opportunity to share your expertise and experience! As a committee or task force member, you will devote time, energy, and ideas to move SCACPA projects and programs forward as envisioned by the Board of Directors, and in turn, lead the profession in supporting a wide range of efforts on behalf of our members, communities and CPAs across the country.

To learn more about how to get involved visit www.scacpa.org/getinvolved or contact Associate Director Reva Brennan at [email protected] or 888.557.4814, ext. 103. n


570 Chris Drive, West Columbia, South Carolina 29169(803) 791-4181 or Toll-free (888) 557-4814

Fax (803) 791-4196 | www.SCACPA.org

SCACPA

The spring 2011 meeting of the AICPA Governing council was held in Washington, DC, May

22-24. I attended as South Carolina’s elected member to council along with SCACPA President Tim Baker; Executive Director Erin Hardwick; President-elect Michael Putich and Associate Director Reva Brennan.

Two primary items of interest were:

1. New credential: cGMAA vote was taken and passed to approve an AICPA/Chartered Institute of Management Accountants (CIMA) joint venture establishing the Chartered Global Management Accountant credential. This joint venture establishes a partnership between the AICPA and CIMA, which is based in London. Together, the new venture will cover more than 550,000 members and students worldwide. The new credential will be available in 2012. Current members in business/industry with three years of experience will qualify for the new credential. For more information visit www.aicpa.org.

2. Private company financial reporting: Grassroots efforts Needed AICPA President Barry Melancon gave an impassioned plea for members of council to begin a grassroots campaign to communicate with the Financial Accounting Foundation (FAF) related to Private Company Financial Reporting. A toolbox for assisting in the letter writing campaign is available to you at https://apps.aicpa.org/pcfr.

South Carolina Represented at AICPA Governing Council Spring Meetingby J. Patrick McDermott, CPASCACPA Member since 1982

You will better understand the urgency and importance of this campaign by watching the video of Barry Melancon recorded at the Council meeting. It is available at http://bit.ly/mCcKBO (Take Action for Change). In addition, there are educational resources available at www.aipca.org/privateGAAP.

At the conclusion of the council meeting on May 24, the SCACPA delegation made visits to Capitol Hill. We sat down with our senators and congressmen and their staff to discuss issues important to the profession, such as:

• Tax strategy patent legislation; • Tax return due date reform

(S.845);• Tax simplification; and the • Mobile Workforce State Income

Tax Simplification Act of 2011 (H.R.1864).

As SCACPA’s elected member to the AICPA Governing Council, I am open to your comments and ideas. Feel free to contact me at [email protected] n

J. Patrick McDermott, CPA, is treasurer and controller for The Beach Company of Charleston, a full service real estate company, including development; leasing, sales and management.

He currently serves as a member of the SCACPA Board of Directors as South Carolina’s elected member to the AICPA Council, the Legislative and Advocacy Committee, the PAC Committee and the Strategic Membership Task Force. Pat is a past president of the board.

Glenna P. OsierPeer Review & Member Services Manager

Ext. 109, [email protected]


Effective for audits of the 2012 calendar year and the fiscal year ending June 30, 2013, clarified auditing standards will be in effect regarding

what audit findings constitute significant deficiencies and material weaknesses. For those of you with access to the Journal of Accountancy, the clarified SAS begins on page 105 of the November edition.

The clarified SAS lists a number of situations which indicate significant deficiencies or material weaknesses or both. Some that caught my attention are:

• Ineffective oversight of the audit entity’s financial reporting and internal control by those charged with governance

• Inadequate design of controls over the preparation of financial statements

• Inadequate documentation of the components of internal control

• Ineffective risk assessment process• Inadequate design of I/T general and application

controls• Employees who lack proper training and/or

supervision to do their jobs• Inadequate monitoring of effectiveness of controls

What this says to me is that beginning in a little over a year, even small audit clients will have to be compliant with the Committee of Sponsoring Organizations’ (COSO) model of internal control.

2012 Brings Changes for Clarified Statement on Auditing Standards by Walda Wildman, CPASCACPA Member since 1984

u ON THe THeOreTicAL siDe THAT MeANs:

1. A control conscious group of those charged with governance (which includes the board in addition to management),

2. Must have conducted a formal assessment of where risk of both theft and financial statement misstatement could occur in their organization,

3. Must have established and documented controls to prevent, timely detect and, in the case of financial statement misstatements, correct, theft and misstatements,

4. Must have established clear lines of communication in the organization to assure appropriate, timely, accurate and current communication of internal control procedures and financial results,

5. And must have established procedures for continuously monitoring the effectiveness of the controls established as a result of the risk assessment.

u ON THe PrAcTicAL siDe THis MeANs:

1. Internal control is not just about theft prevention2. Audit clients must be able to prepare their own

financial statements3. Auditors won’t be able to make trial balance

adjustments which are beyond the skill of client staff4. Audit clients must conduct a formal risk assessment

and in all but the smallest organizations prepare an internal control policies and procedures manual

5. Audit clients must demonstrate that they monitor controls, not just that controls are effective

6. The board of directors must be educated about and actively engaged in the financial reporting process

7. These processes must be in effect at the beginning of 2012

2012 is not far off! n

Walda Wildman, CPA, is a sole practitioner in Columbia whose audit clients are state and local governments and not-for-profit organizations. She is a member of the Benefits Committee and previously served on the Membership Committee and as chairman of the CPE Committee.


August 2011

For the profession, by the profession—that’s what the South Carolina Association of CPAs is all about. SCACPA’s board of directors, committees and task forces and Young CPAs Leadership Cabinet are hard at work making decisions, providing guidance and embarking on projects and programs that strengthen the profession and enable members to improve their knowledge, network and technical skills.

rePOrT frOM scAcPA BOArD MeeTiNGThe SCACPA Board of Directors met May 4 following the CPA Day at the State House event. The board welcomed Bobby Creech, CPA, chairman of the S.C. Board of Accountancy (BOA), who discussed changes occurring at the S.C. Department of Labor Licensing and Regulation (LLR). New LLR Director Catherine Templeton (see page 14) appointed to this post by Gov. Haley early this year, has made numerous structural changes within the agency. Bobby is optimistic that the changes within the agency will translate in to a more effective working environment for the BOA. In addition, the BOA may request assistance from SCACPA from time to time to help pass legislative initiatives since their ability to make technical corrections is more limited under the new state administration.

President Tim Baker presented information on a new certification, the Chartered Global Management Accountant (CGMA), that will soon be offered through AICPA. In addition, Tim led a discussion about the ramped-up momentum around private company financial standards. SCACPA will be asking members, and their clients, to write letters in favor of differential standards.

Other agenda items included an update on the Educational Fund and SCACPA’s investments, a discussion

about the protection of member email addresses and the board received the association’s 2010 audit.

New cOLLABOrATiVe effOrTs wiTH s.c. DePArTMeNT Of reVeNUeIn an effort to help tax professionals proactively identify and prevent problems and to establish an even better working relationship between the S.C. Department of Revenue (SCDOR) and the practitioner community, SCACPA and SCDOR are working collaboratively through two new task forces.

1. Following the concerns this year about the PT-100 filings, a collaborative formed which involves CPAs in ensuring the South Carolina Business One Stop (SCBOS) website is an ef-fective tool for the practitioner community. In partnership with SCBOS, the business portal for the state which allows businesses to file business-to-government (B2G) transactions, SCACPA will be part of a task force that will be reviewing current SCBOS filings and future filings. The group will have a fairly intensive meet-ing schedule that will devolve into once a month once the initial work is done. Many thanks to Charles Ayers, Ken Newhouse and Darin Aldinger for serving as SCACPA’s representatives on this important task force.

2. Another SCACPA/SCDOR task force will be working to resolve issues, discuss challenges and pro-actively identify and prevent prob-lems by bringing together senior staff at SCDOR with CPAs who are tax professionals. This group will examine and discuss issues from both sides of the table and as a member of SCACPA you will be kept informed of the outcomes. The success of this task force will depend on involvement of mem-bers of SCACPA who specialize in tax. As you anticipate or encounter challenges, or if there are quality enhancements you want to recom-mend, this is an effective vehicle to elevate your concerns to a level at which action can be taken. Many thanks to Todd Dailey, Darin Hardin, Mark Hobbs, Jason Sweatt and Tony Wrobel for serving on this task force.

To submit your concerns, ideas and comments either go to the Taxation Knowledge Network on SCACPA’s website or email: [email protected] n

Erin P. Hardwick, CAE, has served as SCACPA’s executive director since 2005. She currently serves as secretary/treasurer of the CPA Society Executives Association, a member of the AICPA Horizons 2025 Advisory

Panel, a member of the S.C Secretary of State’s Nonprofit Advisory Council and the S.C. Economics Board of Directors.

With Challenges Come Opportunities for South

Carolina Economy

“On the positive side, increased transportation costs make local products in south carolina more competitive by

increasing the price of goods that are produced elsewhere and have to be shipped to south carolina.” -- Joey Von Nessen

Compiled by Maureen TaylorSCACPA Member Services Manager


With Challenges Come Opportunities for South

Carolina Economy

AS SOUTH CAROLINA’S ECONOMY CONTINUES TO MEND, CPAs are far less optimistic about the direction of the U.S. economy than they were in the first quarter of 2011, according to the AICPA Business and Industry

Economic Outlook Survey.

Inflation, raw material costs and rising energy costs top the list of concerns for the nation’s CPAs. While these issues have the ability to weaken economic activity and revenue for our state there are some bright spots as well. SCACPA recently asked economists from around the state how these issues as well as corporate incentives and foreign investment will impact the Palmetto State’s economy.

Jonathan Munn of Francis Marion University, Robert Salvino of Coastal Carolina University, Joey Von Nessen of the University of South Carolina and Bruce Yandle of Clemson University also shared their views on the top action items needed to get the economy moving.

In the interest of space we were not able to include all of the responses to every question. However, the article in its entirety can be found online at www.scacpa.org/ExpandedCPAReport.

u u Higher fuel prices cause consumers to adjust spending in other areas. How will fuel costs impact other markets that are important to South Carolina?

Dr. Robert F. Salvino: Fuel costs are a frequent, recurring expense by consumers. Given a fixed monthly income, an increase in the price of gasoline would lead to a decrease in the purchases of other goods in the individual’s overall consumption bundle. Goods and services that are relatively less necessary are the easiest target for cutting back. In the current weak economy, consumers have already been forced to economize on everything from utility usage to eating out. Higher fuel costs would therefore affect recreational spending and spending on more durable-type goods.

Dr. Joey Von Nessen: Higher fuel costs impact all markets in South Carolina, from manufacturing and textiles to agriculture and tourism. Rises in fuel costs contribute to an overall increase in transportation costs for goods and services, which must be absorbed by businesses or passed along to the final consumer. For example, the tourism industry is susceptible to higher fuel costs because people cannot afford to travel as much for vacations. On the positive side, increased transportation costs make local products in South Carolina more competitive by increasing the price of goods that are produced elsewhere and have to be shipped to South Carolina. For example, fruit grown in South Carolina becomes relatively less expensive as farmers outside of South Carolina have to pay more to ship their fruit here – and thus must increase the price of their fruit to compensate. Thus, South Carolina fruit becomes relatively cheaper.

u u South Carolina strives to position itself as a global leader in attracting foreign direct investment. Can you expand upon the impact of foreign investment in the state and future trends and/or opportunities?

Dr. Johnathan Munn: One must only look at the names of many of our state’s major employers, like BMW, Bosch, Michelin and Honda to see how important foreign


Dr. Johnathan Munn Assistant Professor of Economics Francis Marion University

Dr. robert f. salvinoResearch Economist, BB&T Center for Economic and Community Development, Assistant Professor of Economics, Coastal Carolina University

direct investment has been to our state’s economy. According to the Financial Times, South Carolina became the home of 107 new investment projects made by 84 foreign companies between the years 2003 and 2007. In 2010, South Carolina ranked second nationally in the percentage of its work force employed by foreign affiliates. Foreign direct investment is extremely important to our economic well-being. As the world’s economies continue to become more interconnected, one would expect its importance to only grow.

Dr. Bruce Yandle: Our state has been known for its international business climate for decades. The cultural diversity generated is now part of the S.C. brand, which many find attractive. Economic research suggests that immigration of young professionals among the U.S. states is driven partly by cultural diversity, personal freedom and economic freedom. Keeping an open door to international firms and people is another way of opening the door wider to young professionals.

u u South Carolina boasts a business-friendly tax and incentive structure designed to encourage economic growth. In light of the recent controversy surrounding corporate incentives (such as Amazon) what do these additional jobs (or loss of) really mean to our economy?

Salvino: The situation with Amazon in South Carolina is more complex than a typical corporate incentive. Internet retailers have relied on a 1992

Supreme Court decision, Quill Corp. v. North Dakota, to avoid collecting sales taxes in states unless they have a physical presence. Amazon’s proposed distribution center would create a physical presence in South Carolina, thus requiring Amazon to collect sales taxes in South Carolina. The additional sales tax revenue would have been a boon for state revenue, but that revenue source doesn’t currently exist and would not exist without the distribution center. The 1,249 jobs or 2,000 jobs, whichever comes to be, would be a positive development for South Carolina’s workforce.

Yandle: New investments in the state that offer meaningful employment opportunities can be associated with footloose firms and others that need S.C. specific locations. Amazon is an example of a footloose firm. If it doesn’t locate here, it can easily locate elsewhere. Not getting Amazon means there will be no S.C. sales taxes collected—one way or another—and no new Amazon jobs. Other firms, such as Boeing, may not be as footloose as Amazon; they assign higher value to the benefits of a S.C. location. There may be less need for large incentives as between the two cases. We should be as conscious of providing competitive incentives for existing and new local firms to expand as for providing incentives to outside firms to expand in South Carolina.

u u According to a recent AICPA Business & Industry Economic Outlook Survey, unemployment and increasing

debt have CPAs more pessimistic about the economy and increasingly concerned about inflation. Raw material costs, energy costs and interest rates are seen as the most significant risk to business. How will higher inflation impact South Carolina’s economic recovery in 2012?

Munn: In South Carolina, real (inflation adjusted) income rose from 2009 to 2010 by 1.6 percent. However, everyone in the state has noticed the increase in prices of many of the goods and services we buy. If increases in price levels begin to outpace increases in personal income, inflation fears could become a drag on South Carolina’s economic outlook. Inflation can be a natural byproduct of a healthy economy, but in times of economic distress high levels of inflation can compound the problem. South Carolina’s economic recovery will continue to follow national trends. Nationally, the housing market continues to negatively affect the economy as prices continue to be roughly 14 percent lower than when prices peaked in 2007. In South Carolina, housing prices peaked in 2008 and are still 8.5 percent lower than their highs in 2008. This loss of equity, coupled with rising price levels leaves many consumers with a heightened sense of uncertainty. In periods of uncertainty, consumers typically spend less and businesses typically invest less in capital and labor.

Von Nessen: At this point it is difficult to say with any certainty whether the inflation rate will be higher or lower in


Dr. Joey Von NessenResearch Economist, Division of Research, University of South Carolina, Moore School of Business, and RESH Marketing Consultants

Dr. Bruce YandleClemson University Professor of Economics Emeritus, Dean Emeritus, Clemson College of Business & Behavioral Science

2012, but it is important to note that this question implies an expected increase in inflation in 2012. Expectations about the future – especially with regards to inflation and interest rates – can have real effects. Expectations of rising inflation – and therefore of lower investment returns – can produce more risk aversion and slow private investment in the economy because of the accompanying perceived erosion of purchasing power and lower real interest rates.

u u What do you see as the top action steps needed to get South Carolina’s economy moving?

Munn: Perhaps the most immediate action that can be taken to improve the long-term fortunes of the state’s economy is to solidify plans for expansion and dredging of the Port of Charleston. This has the potential to increase the economic fortunes of the state in several ways. Expansion will obviously lead to more jobs in the Lowcountry. However, upon completion of the expansion of the Panama Canal, the canal will be enlarged to a depth of 50 feet. Thus, container ships passing through from the Pacific into the Atlantic will begin to increase in size. Positioning Charleston to take advantage of this development would lead to increases in port traffic and new opportunities in other regions in the state

The condition of the available labor force consistently ranks high on the list of importance to potential employers.

South Carolina continues to rank toward the bottom in most primary education metrics. When looking for investment opportunities, potential employers are always looking for a capable workforce. While programs that target secondary education and adult skill re-development are important and attractive to employers, South Carolina should focus now on taking steps to develop its workforce of the future.

Salvino: Eliminate the individual income tax or at least adjust the brackets for inflation. For South Carolina’s 65 and older population, the state currently exempts all social security income and the first $10,000 of pension income, while the younger workforce faces one of the most regressive income taxes in the country. South Carolina’s income tax brackets are not indexed to inflation. In South Carolina in 2011, $13,350 of annual income puts an individual in the highest tax bracket, 7 percent. If indexed for inflation, only income in excess of $73,200 would be taxed at this rate. In one of the lowest income states in the country, South Carolina’s income tax is regressive, placing a greater burden on lower wage earners, the young and less-skilled.

Reduce South Carolina’s effective manufacturing property tax rate, the highest in the country, to the U.S. average and minimize the current reliance on fees in lieu of taxes. The high rate induces political lobbying and high-cost negotiations between firms and local government authorities. South Carolina’s effective rate is currently two

and a half times that of Georgia and four times that of North Carolina.

Von Nessen: One of the major stumbling blocks South Carolina has had in the past regarding long-term economic development is the lack of communication and conflicting messages delivered among the various agencies responsible for business recruitment and economic development. The governor’s office and the legislature can help with this process by providing a coordinated effort with county, city, and state level agencies and articulating a common vision for development that each agency can participate in supporting. When businesses and investors from outside of the state receive mixed messages from state and local advocates of South Carolina, it creates uncertainty, which again, is detrimental to investment.

Yandle: Improve protection of life and property. Across S.C. cities and areas, we have some of the highest crime rates in the nation. We have one of the highest highway fatality rates.

Improve provision of infrastructure. We lack statewide broadband and interconnected networks. Our harbor infrastructure is ill equipped for larger vessels. We have one of the largest state highway systems in the nation, in miles. Close underutilized state roads and transfer state roads that are actually city streets to municipalities and counties. Improve remaining state highways. n


Catherine Templeton heads the agency tasked with regulating and licensing South Carolina’s CPAs. As director of the Department of Labor, Licensing

and Regulation, SCACPA recently asked Templeton how her experience has prepared her to lead the agency, what her priorities are and what issues CPAs should be aware of in the near future.

u u You were appointed by Gov. Haley in January as the new director of the Department of Labor, Licensing and Regulation. Briefly describe your professional background and service specialty (-ies) leading up to this position.

Templeton: I was fortunate to start my career as a process improvement manager at Milliken & Co. I was trained to measure, account for, and make efficient every aspect of the workplace. Although I have spent the majority of my career as a corporate defense attorney, the Milliken job was the most valuable professional experience I have had.

During law school, I clerked for the former director of LLR under the Beasley Administration, Lewis Gossett. It was just after the restructuring that brought the individual boards under one umbrella and created LLR. While my law practice did not involve LLR during the 15 years after I left, I was here when the legislature’s intent on how to operate the agency was clear and respected.

I have also been active in many volunteer organizations. It is easy to track my life through the service organizations I’ve joined. As a newlywed, my mother-in-law insisted I join the Garden Club of Charleston. As a new mother, it was the kindergarten board and Sunday School teacher. As my son has gotten older, it is the Boy Scouts. Nothing prepares a person to learn motivational skills better than trying to mobilize volunteers!

u u What about your past experiences has prepared you to lead a state agency, and what do you hope to accomplish?

Templeton: I have a business background, a law degree, and training in measured processes. I know how LLR was intended to run and I have a healthy disrespect for red tape and bureaucracy. For the labor portion of

“There are wonderful

people at LLr who know

their jobs and are willing to work hard so licensees can

do theirs.”


by Reva Brennan, MPA, CAE, IOMSCACPA Associate Director

On Wednesday, Oct. 26, SCACPA’s Taxation Committee will host their annual meeting

with the Internal Revenue Service and South Carolina Department of Revenue. During this meeting key employees from both agencies will address issues and concerns of the CPAs of South Carolina as provided in the annual survey. This is an ideal opportunity to share your issues and concerns. A report of the meeting will be provided in the January issue of the CPA Report.

All SCACPA members are encouraged to share their comments through the online survey, available on the SCACPA website at www.scacpa.org. There you’ll find eight important questions with a chance to share your thoughts about reoccurring issues or things the agencies are doing well.

Upon completion of the survey participants can enter a drawing to win a complimentary registration for the 2011 CPA Annual Summit and Member Meeting, held in conjunction with the Tax and Technology Conferences, Nov. 3-4 in Columbia.

JUsT THree eAsY sTePs TO HAVe YOUr cONcerNs

ADDresseD BY THe irs AND DOr:

u Visit www.scacpa.orgv Complete the online survey by Friday,

Sept. 30w Read the January issue of the CPA

Report

irs & scDOr want to Hear from You

the agency, I have experience in traditional labor union campaigns and advising companies on our labor laws. For the professional and occupational licensing portion of the agency, I sat on a professional board for the past eight years and I understand their significance and needs. For the fire and life safety portion of the agency, I am fortunate to have an incredible state fire marshall and I trust him to lead the charge.

u u [Realizing you’re new to the position...] What areas and issues will be top priority in 2011? As CPAs in particular, what should we be aware of in the near future?

Templeton: Customer service is the top priority; everything from getting an actual person on the phone to getting your license without complications. I have now been in office for five months and am thrilled that our licensing division has moved back under the individual boards. It is crucial that we create accountability in the agency and measure how we are doing. Upon arrival, no one knew how long it took to issue a license because there was no procedure for issuing one or tracking our progress.

There are wonderful people at LLR who know their jobs and are willing to work hard so licensees can do theirs. We are finally getting the structure in place so that the hard work of the employees pays off and is starting to become evident to the citizens of South Carolina.

u u You’ve recently been named one of the “Best Lawyers in America” (among other awards) -- what made you choose this career path? What are you most proud of? What do you enjoy most about what you do?

Templeton: My father told me that if I had my law degree I could have any job I wanted. Law school teaches you how to think a certain way. You learn to attack problems from all sides and see as many perspectives as possible. That education shapes all of my decisions and is very beneficial walking in to any organization that has had the same leadership for eight years.

I am probably most proud of my work nationally with a project called iCivics.org. Justice Sandra Day O’Connor, concerned with civics education, created a gaming website to teach middle school students about the three branches of government. We started the pilot project here in South Carolina and are now in all 50 states and one territory. My friend, Molly Craig, and I are Justice O’Connor’s national coordinators and the experience with the children and the Justice has been phenomenal. n


Whether a firm is large or small, the issue of transitioning

staff up through the organization is relevant. Most firms

are dynamic and should be thought of as living, breathing

things that are constantly evolving and changing. That necessarily

implies that client relationships to the firm will usually change creating

the opportunity for staff to expand their importance to the firm and to

clients of the firm. There are a few critical points to consider if there

exists the intention of giving the firm longevity spanning more than one

or two generations of owners. These points are:

1 Hire staff who show promise of meeting the basic requirements of the profession including becoming a CPA and committing to

lifelong learning. The firm must likewise commit itself to providing a structured learning environment. The body of knowledge we must contend with is ever growing. It is difficult for a person to master all of the knowledge we must rely on to effectively advise clients. Staff members should be encouraged to have a very good general knowledge of what we do but also to channel their knowledge by pursuing one or two niche areas that will allow him/her to become highly skilled in providing services to firm clients. This may mean providing these deep skills to a set of firm clients and/or in support of more than one partner’s clients. These niche skills may also allow the staff person to garner new clients while promoting these skills.

2 Have an effective and timely evaluation program and know the personal and professional goals of each staff person. Lack

of effective communication is one of the biggest complaints in staff feedback. Having an effective evaluation program can address some of these criticisms. Often staff members do not know what is expected of them to clear promotion hurdles. Evaluation meetings should offer an opportunity not just to talk about past accomplishments, but to learn what staff members expect of themselves and what their personal and

Transitioning Staff Up the Ladder Vital to Firms Wanting to Span Generations by V. Carroll Webster, CPASCACPA Member since 1975


professional goals are. Too often we find that a staff person came to feel that personal and professional goals could better be achieved elsewhere and that is learned in an exit interview. Information gained in exit interviews can be valuable for changing aspects of the organization but it usually is too late to do anything about a person who has considered his/her goals versus the perceived opportunities in the firm.

An effective evaluation process including interim meetings, mentoring, group interactions, etc. can go a long way toward aligning firm and individual goals and helping staff members understand what it takes to clear certain hurdles and have a steady upward movement in the firm. For those who do match up well against standards set by the firm, make certain we are not asking this group to do something they cannot excel at. Perhaps another more suitable track should be considered. Also the firm must be fair in considering whether a given staff person can realize his/her personal and professional goals in the firm’s organization. Turnover is expensive to the firm and inhibits the ability to build a successful staff and client transition plan. These actions can help manage turnover to a more reasonable level.

3 Give staff access to clients and involve them in material

client issues at least by the time they reach manager level (five to eight years of experience). Partners should be building client skills in staff members to give them an opportunity to evolve the knowledge and skills that cause clients to seek them out directly thus aiding the client transition process, which is critical to giving staff members upward mobility and getting clients

accustomed to dealing with someone other than just one partner. The client relationship should grow to the point that communication flows through the staff member(s) who manage the services provided not just through the partner. Limiting such access does not serve the long term transition plans well. The partnership agreement or employment contracts should address concerns partners may have about exposing staff to clients and creating a risk of losing the client should the staff member decide to leave the firm.

4 Do not overly incentivize partners to retain client volume

due to ongoing compensation or retirement compensation. Too often in multi-partner firms, clients are still managed in “silos” with a partner controlling a wide range of services provided to a client. Sometimes this is an incentivized result of having an ongoing compensation plan or a retirement compensation plan that relies too heavily on a “book of business” approach. Such an approach can result in partners protecting “their” client base and trying to serve clients across a wide range of knowledge. Partners should be incentivized to push down clients to staff or younger partners moving up through the firm and go out and seek new clients to support the firm’s growth plan.

5 Have a growth plan for the firm. Partners as well as upper

level professional staff members may have reluctance about pushing down clients unless the firm has a robust client growth plan. All staff should be a part of the plan. Those moving up through the firm should not only have a good understanding of the firm’s growth plan but should have his/her own success tied to that of the firm and have compensation

tied to participation in the growth efforts. Most partners are expected to be “rainmakers” and as such should a have specific part in the growth of the firm. A client push down incentive for partners along with robust expectations about new services and new clients can create the sort of updraft that creates an effective client transition plan and helps staff transition plans.

If a firm wants to remain independent and span generations or give itself a chance of doing so, an effective plan for moving staff up through the organization is critical. Lay out the opportunities and adhere to the firm’s commitments. n

“The client relationship should grow to the point that communication flows through the staff member(s) who manage the services provided not just through the partner.“

V. Carroll Webster, CPA, is managing partner of WebsterRogers LLP, an accounting firm of over 100 professional and support staff with multiple offices in midlands and eastern South Carolina. He currently serves on the Bylaws Task Force,

the Editorial Board Task Force and the PAC Committee. He is past president of the board, past chairman of the Managing Partners Task Force and previously served as a member of the Professional Relations Task Force and the Legislative and Advocacy Committee. He also served two terms as the elected member to AICPA Council and serves on the Practice Advisory Group and Nominating Committee of AICPA.

18 (888) 557-4814 | www.scacpa.org

Young accounting professionals are vital to all public accounting firms. They are the future of the profession. They are also in high demand.

According to the Bureau of Labor Statistics, the number of jobs available for accountants and auditors will increase by 22 percent between 2008 and 2018. This increase in demand comes at a time when there is a projected decrease in the availability of accounting professionals. Accounting firms must focus on attracting and retaining young accountants to remain viable and grow.

The good news is that according to the AICPA 2011 Trends Report, the number of graduate and undergraduate students enrolling in accounting programs is increasing. In 2010, there were 225,000 students enrolled in accounting degree programs. This is the highest enrollment since the AICPA began tracking this information in 1971. At the same time, hiring of accounting graduates during 2010 was at its second highest point since the survey began. The bad news is that the AICPA estimates that the number of new accounting professionals will not even be enough to replace those who are retiring from or otherwise exiting the profession, let alone fill the new jobs that are being created.

What can firms do to compete in this talent war? How can public accounting firms effectively recruit and retain new accounting professionals?

Here’s a hint - It is not all about money.

The following strategies are based on discussions and surveys with new accounting professionals entering the profession and accounting professionals with up to 10 years of work experience.

The overwhelming sentiment among young accounting professionals is that they want opportunities for career growth. They want to be

Battle to Recruit and Retain Young Talent Not All About the Moneyby Amanda Colgate, CPASCACPA member since 2006


given intellectually stimulating and diverse projects. A common issue faced by staff at many firms relates to the level of complexity of the work assigned to them. The perception among staff is that managers and partners are hoarding more challenging projects. This leads to boredom, and it also makes staff question their value to the firm. In order to provide the professional development that younger staff are seeking, firms should ensure that each employee is challenged by work assignments. This may result in more questions, but procedures should be implemented to lessen the burden on managers and to encourage them to develop younger professionals in their firms.

Young CPAs also want opportunities for direct client contact. This is an important aspect of the development of future firm leaders. Many young CPAs feel shut out from the process and do not believe that they are getting enough experience meeting with clients. Even if staff do not actively participate in these conversations, they learn from listening to partners during these meetings. As experience is gained, these younger accountants can be called upon to lead some of these meetings. Getting these professionals out of their comfort zones will help them grow professionally and will also demonstrate their value to the firm.

New accounting professionals want to be given the tools and training that they need to perform their work. While many partners believe that they are providing staff with ample

training and tools, many young CPAs disagree. Research materials should be current and easily accessible. In addition, keeping up with the latest technology offerings will also help to attract and retain the new generation of accountants. Recent accounting graduates are accustomed to utilizing technology to work more efficiently and are frustrated by spending unnecessary time on tasks.

Firms should also offer continuous learning opportunities through formal training. Continuing education is an investment and not simply a necessary expense. Partners should choose education programs based on the strategic goals of the firm and also be open to suggestions from staff based on individual areas of interest. Allowing younger professionals to choose some of their educational opportunities will increase retention of staff who value career development. These areas of interest may even lead to growth opportunities for the firm.

Feedback is a key component of a firm’s strategy to develop and retain staff. This is a two-way street. Younger accountants value ongoing performance evaluations, both in the form of formal performance reviews and more frequent informal critiques and acknowledgements. In addition, they want to be heard by management. Most young CPAs have strong opinions about what works and where they feel changes need to be made within their firms. Partners can gain valuable insights from staff by keeping dialogue open and being accessible.

Many young accountants are also concerned with job flexibility and work/life balance issues. They are more focused on productivity and value instead of billable hours. They think that face time is a waste of time. If their work is done, they see no need to be at the office. Furthermore, they value the flexibility provided by technology, and

According to the Bureau of Labor statistics, the number of jobs available for accountants and auditors will increase by 22 percent between 2008 and 2018.

BY THe NUMBers the ability to work remotely and on their schedule.

Of course, competitive salaries and benefits packages remain an important part of hiring and retaining accounting professionals. The Robert Half 2011 Salary Guide, approximates the range of starting salaries for new graduates joining public accounting firms in South Carolina to be between $37,350 and $55,125 depending on firm size. More specific salary information can be found on the Robert Half website (www.rhii.com). It is also important that staff understand the review process and how raises are determined.

Bonus programs and incentive pay can also be a powerful tool; however, many talented young CPAs are dissatisfied with the bonus structures within their firms. They feel that compensation at their firms is based more on tenure than on performance. This can quickly create dissention among employees and result in staff turnover. Incentive pay programs should be developed based on the goals of the firm and staff should be familiar with these programs.

As stated earlier, when it comes to recruitment and retention it is not all about money. By involving young professionals in interesting projects, putting staff in front of clients, and providing the tools young accountants need to effectively perform their job, firms will have an edge on the competition in the talent war. In the end, these young CPAs will have a greater level of commitment to their work, higher morale and a greater sense of loyalty. n

Amanda colgate, cPA, is a partner at Godshall & Colgate, LLC. A past chair of the Young CPAs Leadership Cabinet, Amanda currently serves on SCACPA’s Editorial Board. She is also a member of the AICPA’s Young CPA Committee.


cPA Day at the state Housep (1) Some of South Carolina’s newest CPAs following the Oath Ceremony. (2) Ken Newhouse, Mike Targia and Tim Baker prior to the start of the Legislative/Regulatory Issues Update. (3) State Comptroller Richard Eckstrom addresses new CPAs prior to administering the oath. (Photo by Christian Viera Photography) (4) New CPAs Kerri Snipes and Gabrielle Davis following the Oath Ceremony. (5) Members of the Young CPAs Cabinet welcomed new CPAs with an Ice Cream Social.

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w x

y

SCACPA members, new CPAs and state legislators gathered recently to celebrate CPA Day at the State

House and hear about issues impacting the profession and the business community.

The 5th annual event was held May 4 at the Columbia Metropolitan Convention Center. The program got under way with a State Legislative Review panel featuring Erin Hardwick, SCACPA executive director; Otis Rawl, CEO of the S.C. Chamber of Commerce; Jason Sweatt of Ernst & Young and chair of the SCACPA Legislative and Advocacy Committee; and Jeff Thordahl, SCACPA legislative lobbyist.

Attendees also had an opportunity to hear from two new state agency directors Catherine Templeton, S.C. Department of Labor, Licensing and Regulation and James Etter, S.C. Department of Revenue. A networking lunch offered SCACPA members an opportunity to interact with state legislators and strengthen the profession’s voice at the state level.

During the Oath Ceremony, 38 new CPAs were sworn in by State Comptroller Richard Eckstrom. Friends, family members and fellow CPAs also heard from SCACPA President Tim Baker, S.C. Board of Accountancy Chairman Bobby R. Creech, and Ashley Thiem, chair of the Young CPA Cabinet. The ceremony was sponsored by Dixon Hughes Goodman; Duncan, Farmer, Munden, McIlrath & Cobb; Elliott Davis and WebsterRogers. Following the Oath Ceremony attendees were treated to an Ice Cream Social sponsored by SCACPA’s Young CPA Cabinet. n

SCACPA Celebrates CPA Day at the State House, Welcomes New CPAs


Rebecca Allison t Eugene D. Ashman Daniel F. Barden Shannon Barwick Matthew D. Becker Cheryl L. Bennett t Jonathan W. Blanchard * tRyan T. Bowman Alison D. Boyd t Diana C. Bray t Roderick Broady t Raymond M. Brown Meghan M. Burkett * t Pamela S. Burnfield t Steven D. Carter * t Pete Chavez Alfred T. Clarkson * t David T. Cole * t Peggy S. Conkel Paula L. Cooper * t David T. Corey Jonathan T. Crapps t James B. D'alton Harris J. Darver * t Arlynne Davis Gabrielle P. Davis * t

Tiffany D. Davis * t Victor V. Ditommaso Jonathan N. Dowbak t Ryan D. Downing Aaron D. Dresdow Jeremy G. Dunn t Shannon R. Eichelberger * Philip O. Espy t James D. Ferguson * t Kathryn C. Ferguson * tLauren R. Floyd * t Sara M. Fox * t Timothy D. Gacsy Joel A. Gibbons * t Ashley L. Glasgow Robyn L. Hager * Patrick C. Haller t Michael A. Harrison Stephanie A. Harrison John F. Hatcher t Monica Herrera Damon Hilton * t Laurel E. Holmes * Carla L. Howell t Mckenna S. Hughes * Jamie M. Hypes *

Cristen A. Jones * Eboni L. Jones * Amanda M. Jones Linda K. Jones t Jospeh S. Kassim t Georgi E. Katrov Melynda R. Kesler * t Jeffrey M. Kowalk Michelle Ladd * t Frances B. Lambe t Michael D. Langley Renee A. Larocque Ginger R. Lawrimore t Renee L. Lewis t Kevin S. Light t Brittany A. Long t Jean A. Mackulin Ronald A. Mackunis Lyn D. McGee Linda J. Mckeet Elizabeth A. Mcknight Maureen M. Miley * Matthew S. Miller * t Ashley P. Mims Megan A. Moxie Erica L. Nanke * t

John M. Nixon * t Gwyn Northrup Amanda S. Osborne t Stephen M. Pelcher t Steven M. Petersen Timothy L. Petrie Joseph P. Phipps t Marisa S. Phoenix * t Leslie I. Platt t Addison B. Potter t Paula J. Pridgen * t William R. Quattlebaum * t Kelly M. Ranney Kristopher N. Reed t Meagan M. Richards * t Andrew W. Saleeby t Neal Schaefer Robert Schlau * t Vicki L. Schmidt Thomas P. Self Briana M. Shafer Elizabeth M. Sharpe * t Jennifer L .Shields *t Michael L. Sijon Gerald D. Skippert Kerri B. Snipes * t

South Carolina New CPAs, October 2010 - March 2011 t = SCACPA member * = Attended ceremony

Adebambo Sonaike John St. George * Benjamin A. Steele t Keon A. Stevenson t Keith A. Stokeld Austin W. Stone Coleman F. Szely Nicholas J. Thomas Travis B. Traxler t Janice L. Turvey James M. Van Hook Jessica M. Wahr t Quincy L. Walde Michael L. Wolf Timothy S. Wyld Lolita A. Wynn Matthew F. Young * t

q(1) Thirty-eight new CPAs participated in the Oath Ceremony. (Photo by Christian Viera Photography) (2) Ronny Burkett hands Meghan Burkett her certificate during the Oath Ceremony. (Photo by Christian Viera Photography)

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864.286.5300accountant.adp.com

HR. Payroll. Benefi ts.

The ADP logo and ADP are registered trademarks of ADP, Inc. In the Business of Your Success is a service mark of ADP, Inc. ©2011 ADP, Inc.

Take yourbottom linestraight tothe top.You’re not afraid of a little hard work - but you don’t want to fi ll your day with it. From payroll to HR and benefi ts administration and beyond, ADP® has the expertise and experience to handle your clients’ changing needs. That means you’ll spend less time on day-to-day administration and more time on your strategic and bottom line goals.

ADP is an Exclusively Endorsed Payroll Provider for the South Carolina Association of Certifi ed Public Accountants.

Call 864.286.5300 today!

SCACPA Ad.indd 1 6/17/11 3:25 PM


As CPAs, International Financial Reporting Standards (IFRS) are important now (see Why

IFRS Matters Now, 2nd Edition 2011 CPA Report, www.scacpa.org/cparepor-tarchives).

With uncertainty in the ultimate conver-gence of IFRS and accounting principles generally accepted in the United States (US GAAP), practitioners will no doubt continue to prepare and report finan-cial information in accordance with US GAAP. For those who have specific reasons for adopting IFRS, financial statement items with contradictory authoritative guidance will require ad-justing entries from the US GAAP trial balance. Inventory and long-lived assets are common items that have differences that will require separate accounting and adjustments.

LONG-LiVeD AsseTs The accounting rules for IFRS and US GAAP associated with the acquisition, depreciation, impairment, and disposal of long-lived assets have many com-monalities. Significant differences that should be considered in adjusting US GAAP to IFRS reporting include:

• Capitalized borrowing costs –IFRS and US GAAP require inclusion in the initial cost of an asset, the capital-ized borrowing costs incurred during the period of time in which a long-lived asset is constructed or prepared for use. IFRS, however, includes foreign exchange gains and losses in the eligible costs as well as an offset of any investment income from the specific borrowings associated with

the asset during construction. US GAAP does not.

• Component depreciation – IFRS requires major components of a single asset to be depreciated separately where the useful lives are signifi-cantly different. For example, if a single machine used in manufactur-ing has structure, housing, and other non-moving components that are expected to last significantly longer than the motor and moving compo-nents, the moving component(s) will be depreciated over expected useful lives shorter than those used for the non-moving components. US GAAP permits component depreciation, but it is not required and not common in practice.

Separate fixed asset and depreciation records are relatively simple to maintain after initial set up. If future IFRS report-ing is possible, it may be more efficient to establish separate fixed asset records in accordance with IFRS as assets are ac-quired or constructed in the event IFRS statements are prepared in the future.

iNVeNTOrYThe general concepts utilized in ac-counting for inventory are fairly similar under US GAAP and IFRS. Common differences, however, that are likely to be material for many financial statement preparers are:

• Methods for determining cost – IFRS specifically prohibits the last in-first out (LIFO) method, while US GAAP, for the time being, permits LIFO as an acceptable method for determining inventory cost. Preparers that use the

LIFO method under US GAAP will need to separately maintain inven-tory records using the first in-first out (FIFO) or weighted average methods for preparation of IFRS financial statements.

• Reversal for impairment write-downs – While both IFRS and US GAAP require evaluation of inven-tory for impairment and adjustment to the lower of cost of net realizable value, only IFRS permits those im-pairment adjustments to be subse-quently reversed up to the amount of the original adjustment.

This article merely covers common dif-ferences in aggregate circumstances and is not a comprehensive guide. For ad-ditional information, go to the authorita-tive sources. Unaccompanied IFRSs and access to the IFRS for Small and Medi-um-Sized Entities (IFRS for SMEs) can be accessed directly at http://www.ifrs.org/IFRSs/IFRS.htm. The Accounting Standards Codification (ASC) is acces-sible by visiting http://asc.fasb.org/. n

Derrick B. Stark, CPA is man-aging member of ClaraVista LLC, a reimbursement and consult-ing firm serving home medical equipment suppliers throughout the United States. Derrick’s areas of expertise include data analyt-ics and application develop-

ment. He currently serves on SCACPA’s Editorial Board Task Force and has previously served on the CPA Ambassadors Task Force, the Business Valuation and Forensic & Litigation Services Task Force and the Young CPAs Task Force. Derrick can be reached at [email protected].

864.286.5300accountant.adp.com

HR. Payroll. Benefi ts.

The ADP logo and ADP are registered trademarks of ADP, Inc. In the Business of Your Success is a service mark of ADP, Inc. ©2011 ADP, Inc.

Take yourbottom linestraight tothe top.You’re not afraid of a little hard work - but you don’t want to fi ll your day with it. From payroll to HR and benefi ts administration and beyond, ADP® has the expertise and experience to handle your clients’ changing needs. That means you’ll spend less time on day-to-day administration and more time on your strategic and bottom line goals.

ADP is an Exclusively Endorsed Payroll Provider for the South Carolina Association of Certifi ed Public Accountants.

Call 864.286.5300 today!

SCACPA Ad.indd 1 6/17/11 3:25 PM

Getting from Point GAAP to Point ifrsby Derrick B. Stark, CPASCACPA member since 1996


2011 Professional Issues Update SeriesMapping Your Road to Success

8 cities | 4 hours of FREE CPE | Exclusively for SCACPA Members

Register now to attend this members-only exclusive where you will have an opportunity to:

Whether you are a past attendee or �rst-timer, the 2011 PIU will give you the latest information on last year’s topics, details about recent events and the news you need to know.

Register online www.scacpa.org/pius

Aug. 25 Aug. 26 Sept. 20 Sept. 23 Sept. 29Sept. 30 Nov. 10 Nov. 11

Florence Myrtle Beach Rock Hill Columbia CharlestonHilton HeadSpartanburgGreenville

p.m.a.m.p.m.a.m.a.m.a.m.p.m.a.m.

Discuss key issues a�ecting the CPA profession

Learn about new trends in accounting and business

Hear the latest news from the Board of Accountancy

Discover marketing tips to grow and retain your client base

Network with your peers and association leaders


sOMe KeY issUes DiscUsseD AT THis YeAr’s reGiONAL MeeTiNG

• Blue Ribbon Panel on Big GAAP vs. Little GAAP – this topic is currently being considered by the Financial Accounting Foundation. The majority position of this Blue Ribbon Panel is that a new methodology of establishing financial accounting standards is needed for the non-public business entities. The minority position recommends using one framework but focus on exceptions or exclusions in certain circumstances for privately owned entities.

• S.C. board members attended a session on current ethical issues facing state regulating boards in which we also examined issues before the AICPA Professional Ethics Executive Committee. Many states, like South Carolina, have incorporated the AICPA Code of Professional Ethics by reference into their state accountancy practice act. Since our state law incorporates the AICPA rules as state law it is imperative that we, as state board members and staff, stay current and have input on these rules and interpretations so we can effectively serve our role as regulators.

by Mark T. Hobbs, CPASCACPA member since 1981

Third Quarter report

IRS GETS SOCIAL

The IRS is getting social with its tax preparer community and those needing help resolving issues with the agency.

The new Facebook page is intended to keep tax preparers informed about various developments within the IRS that affect their profession and to serve as a place to engage in conversation with professionals in the tax preparation industry. Visit the IRS on Facebook at http://www.facebook.com/IRStaxpros.

Members of the S.C. Board of Accountancy participated in the Eastern Regional Meeting of the National Association of State Boards of

Accountancy (NASBA) in Point Clear, Ala. in June.

Since there is no CPE or other educational programs on how to be an effective member of a regulating board like the Board of Accountancy, this meeting offers a wealth of opportunity to learn. The education sessions help assure that the state regulatory processes are functioning and to assist us, as state board members, in fulfilling the responsibility to protect the public interest.

OTHer iMPOrTANT News The S.C. Board of Accountancy includes the appointment of David C. Nichols, an accounting practitioner, to the board in January 2011. This is the first time since I was appointed in 2005 that the board has its full complement of nine members (five CPAs; two APs and two public members). David is a sole practitioner in Newberry. His previous experience includes state government (Auditors’ Office), public accounting at a CPA Firm, and serving as vice president for Business Affairs at Newberry College. He is a member of the National Society of Accountants and the South Carolina Society of Accountants. n

South Carolina Department Of Labor, Licensing & RegulationBoard of Accountancy • (803) 896-4770 www.llr.state.sc.us/pol/accountancy

“LET’S TALK THIS THROUGH”Ron Klein, JD, CFE, VP Claims Counsel for CAMICO, discusses the risks faced by CPAs every day.

OK, Ron, is this client relationship really a risk to me?

Well, let’s look at the red flags. The client has careless record-keeping practices, is late in providing information and is often non-responsive, causing you delays. What happens if the business fails or you later discover the client had been deliberately withholding information due to unethical activity. How might you be blamed?

Isn’t it better to fix the problem and keep the client?

Sure, if you can. But at what cost to you, your staff and your firm?

But disengagement is such an unpleasant business...

Not nearly as unpleasant as getting sued. Proactively managing your risk through client selection and retention is really about upgrading your client base and thus upgrading your firm.

OK, so I’m ready to disengage from this problem client. What’s the next step?

Calling CAMICO is always your first step. Our risk management specialists will help you tactfully and securely end the relationship. We have dozens of sample disengagement letters and will even help you tailor your own letter to make sure all your bases are covered.

Not insured by us? Give CAMICO a call, and we can start the conversation about lowering your risk – and easing your heartburn – today.

See a video of Ron Klein talking about how CPAs can

best handle disengagements at www.camico.com/disengage

YOU GET TWO DOLLARS IN HEARTBURN FROM THIS CLIENT FOR EVERY DOLLAR IN FEES?

CELEBRATING A QUARTER CENTURY OF PROFESSIONAL LIABILITY INSURANCE FOR CPAS

DAVI D PORTE R

1.800 .652 .1772

D PORTE R@CAM ICO.COM

CAMICO PROFESSIONAL LIABILITY INSURANCE

IS ENDORSED BY:

“LET’S TALK THIS THROUGH”Ron Klein, JD, CFE, VP Claims Counsel for CAMICO, discusses the risks faced by CPAs every day.

OK, Ron, is this client relationship really a risk to me?

Well, let’s look at the red flags. The client has careless record-keeping practices, is late in providing information and is often non-responsive, causing you delays. What happens if the business fails or you later discover the client had been deliberately withholding information due to unethical activity. How might you be blamed?

Isn’t it better to fix the problem and keep the client?

Sure, if you can. But at what cost to you, your staff and your firm?

But disengagement is such an unpleasant business...

Not nearly as unpleasant as getting sued. Proactively managing your risk through client selection and retention is really about upgrading your client base and thus upgrading your firm.

OK, so I’m ready to disengage from this problem client. What’s the next step?

Calling CAMICO is always your first step. Our risk management specialists will help you tactfully and securely end the relationship. We have dozens of sample disengagement letters and will even help you tailor your own letter to make sure all your bases are covered.

Not insured by us? Give CAMICO a call, and we can start the conversation about lowering your risk – and easing your heartburn – today.

See a video of Ron Klein talking about how CPAs can

best handle disengagements at www.camico.com/disengage

YOU GET TWO DOLLARS IN HEARTBURN FROM THIS CLIENT FOR EVERY DOLLAR IN FEES?

CELEBRATING A QUARTER CENTURY OF PROFESSIONAL LIABILITY INSURANCE FOR CPAS

DAVI D PORTE R

1.800 .652 .1772

D PORTE R@CAM ICO.COM

CAMICO PROFESSIONAL LIABILITY INSURANCE

IS ENDORSED BY:


Focus On Membership

SCACPA member since 2002Lynn Dantzler, cPA

Member Profile

what made you choose to become a cPA? As a child, my game of choice was playing accountant/banker. Of course, I was always the accountant and my friends were the clients. Through high school, college, and graduate school I loved all classes revolving around finance and accounting. During my grandmother’s later years, I managed all of her financial affairs. This experience taught me invaluable lessons on how to deal with accounting issues on a personal level with empathy. My pursuit of the CPA profession has resulted in a challenging career where I hope to make a difference every day.

what led you to being a cPA in the real estate industry? While working for public accounting firms, I enjoyed the tax compliance and planning work that involved real estate clients and transactions. I took additional CPE courses on topics such as Like Kind Exchanges and Construction Projects to further my knowledge. When the opportunity

was offered to become the CFO for a property management/real estate company, I felt prepared for the challenge.

The National Association of realtors recently reported the improving economy means an increased demand for commercial real estate. is south carolina mirroring this trend?Commercial Real Estate has always been an active component in the South Carolina economy, especially in the historic towns and growing cities. There has been more activity lately with investors interested in buying and selling commercial real estate, and well as tenants looking for spaces to lease. As the economy continues to improve overall, commercial real estate in South Carolina should continue to be in high demand.

what do you find most challenging about working in the real estate industry? Most rewarding? The most challenging aspect of working in the real estate industry is interacting with different types

of investors. Every person or entity that invests in real estate has different expectations, so the key is to learn what they need and how to excel in the services provided to them. The most rewarding part of working in the real estate industry is knowing that you have exceeded all expectations and provided value to the investors.

what advice do you have for young cPAs? I would definitely tell young CPAs to never turn down a chance to learn something new. The accounting and finance world is always changing, and CPAs stay competitive by staying up to date on the newest accounting laws and trends needed to solve issues and add value to clients. Also, involvement in the community provides an invaluable understanding of the local economy, and how the people and businesses interact.

How have you benefitted from your membership in scAcPA? SCACPA is a great service engine for networking among CPAs and their clients. SCACPA also provides a wide variety of CPE and even has a committee focused on CPAs in industry.

How do you enjoy your leisure time? I love being on or near the water. My favorite places are Lake Murray, Pawley’s Island and Isle of Palms. A recent vacation was sailing around the British Virgin Islands for a week. I also enjoy reading. With a recent pur-chase of a Kindle, I find it exciting that thousands of books are a download away. My favorite genre is mystery fiction followed closely by non-fiction accounts of the Civil War. n

chief financial OfficerSoutheastern Management Group, Inc.

Charleston, S.C.

scAcPA involvement: Coastal Chapter Vice President

“The most challenging aspect of workingin the real estate industry is interacting with

different types of investors.”

28

FIRM NEWSFord & Crowley, CPA, LLC recently welcomed Lisa Wechsler as a partner and changed the firm’s name to Crowley Wechsler & Associates LLC. Crowley Wechsler & Associates has offices in Beaufort and Charleston.

George N. Love, CPA, of Laurens recently welcomed Gary Bailey, CPA as a partner and changed the accounting firm’s name to Love Bailey & Associates, LLC.

MEMBER MOVESBen Stoner, CPA, has joined A.T. LOCKE, Greenville as an accounting analyst.

IN THE NEWS Harris J. Darver, CPA, has been promoted to the level of senior staff accountant with McGregor & Company, LLP. He works out of the Columbia office and primarily performs governmental and not-for-profit auditing and assurance services.

Gabrielle P. Davis, CPA, has been promoted to the level of senior staff accountant with McGregor & Company, LLP in Columbia. She currently works out of the Columbia office and primarily audits governmental, not-for-profit and nonpublic companies.

Member NewsFocus On Membership

Columbia Charlotte Charleston Greenville Raleigh Myrtle Beach

Experience. Service. Results.

mgclaw.com

At MG&C, our experienced professionals are committed to excellent service and innovative solutions for diverse legal and business challenges.

Elliott Davis, LLC, one of the largest accounting, tax and consulting services firms in the Southeast, has been recognized among the “Best Upstate Companies for Working Moms” by the March of Dimes and Greenville Business Magazine. The firm was one of 11 recipients of the honor.

Jason M. Blumer, CPA, CFE, of Blumer & Associate, CPAs, PC, Greenville, was named to the CPA Technology Advisor’s 40 Under 40 Class of 2010.

Mary Ann Prater, CPA, an accounting lecturer in the College of Business and Behavioral Science at Clemson University, was presented with the 2011 Master Teacher Award by the Student Alumni Council.

CONDOLENCESWillis Josey Woodham, Jr., of Bishopville, passed away on June 25, 2011. Born July 31, 1962, he was a graduate of Robert E. Lee Academy and Wofford College and a lifelong member of Bethlehem United Methodist Church. A SCACPA member since 1988, he was a Certified Public Accountant and a partner in the firm Moore Beauston and Woodham where he served as manager of the Hartsville office. He was a member of Civitans, the Hartsville Chamber Board and chairman of the Robert E. Lee Board. He was named Business Man of the Year for 2010 by the Hartsville Chamber of Commerce. n

Every year, the South Carolina Association of CPAs honors the accomplishments of members who demonstrate exemplary practices of ethics, leadership, community involvement and association involvement.

SCACPA invites you to nominate one or more candidates for the Public service Award, Accounting educator of the Year Award, Outstanding Member in Business & industry Award, service to the Profession Award and Young cPA Award.

All nominees must be members in good standing with SCACPA. Recipients will be recognized during the 2011 Annual CPA Summit, held November 3-4, 2011 in Columbia, SC. Nomination deadline: September 1, 2011.

staff contact: Emily Allen, [email protected], 803.791.4181 ext.106

SCACPA Searches for

Stars in the Profession


welcome New Members March 28 - June 28, 2011

Focus On Membership

Academic Affiliate Patricia M. Herkenham Okatie, S.C.

AssociateHarold D. BakerNaples, Fla.

Jetal V. Patel Duncan, S.C.

Claire Pitsis Mount Pleasant, S.C.

William V. Ward Greenville, S.C.

Affiliate/Non-CPAJane Y. Thayer Myrtle Beach. S.C.

CPA CandidateStephanie J. Hill Bluffton, S.C.

Franklin C. Gillam Orangeburg, S.C.

Lori Reynolds Sumter, S.C.

Jessica N. LaneyWest Columbia, S.C.

Christine C. Bedenbaugh Greenwood, S.C.

Lee F. Horton Florence, S.C.

Patricia A. Trombly Pawleys Island, S.C.

FellowKevin A. Robinson Blythewood, S.C. Pamela S. Burnfield Cassatt, S.C.

Leslie K. Martin Hilton Head Island, S.C.

Kyle E. Herbert Lexington, S.C.

Maureen M. Miley North Charleston, S.C.

Kelly A. Barr Florence, S.C.

Raymond M. Brown Greenville, S.C.

Wesley E. Carr Greenville, S.C.

Lori A. McLaughlin Greer, S.C.

Steven M. Petersen Spartanburg, S.C.

Jennifer G. Nichols Spartanburg, S.C.

Fellow – GovernmentWilliam M. Blume Jr. Mount Pleasant, S.C.

Dawn Willan Summerville, S.C.

Firm AdminWendi R. Richardson Columbia, S.C.

StudentJoshua A. Carlson Rock Hill, S.C.

Adrienne C. DePaul Columbia, S.C.

Emelia G. Howell Fort Mill, S.C.

Miles A. Klickman Rock Hill, S.C.

Lindsay Lesesne Columbia, S.C.

Amanda G. Newell Inman, S.C.

Wyche W. Scarimbolo Irmo, S.C.

Rebecca L. Shirer Mount Pleasant, S.C.

Carrie M. Sims Columbia, S.C.

Elizabeth A. Tucker Lexington, S.C.

Sustainability is becoming one of the most significant forces impacting the accounting profession, and it will continue to evolve in the coming years. It is for this reason that SCACPA is offering its first ever Emerging Trends in Accounting conference focused on the issue of corporate sustainability. This eight-hour, full day conference takes place Wednesday, Dec. 7 in Columbia.

Whether you work in public practice or in business/industry, mark your calendar now to attend this cutting-edge conference to learn more about corporate sustainability and the related opportunities and challenges impacting our profession. Hear various perspectives from knowledgeable presenters and leave the conference with a deeper understanding of corporate sustainability and your role in this emerging trend.

Look for registration information at scacpa.org

Wednesday, December 7, 2011

TOPics wiLL iNcLUDe:• Theevolutionofcorporate

sustainability and how U.S. companies are proactively positioning themselves to leverage the benefits associated with sustainability

• Anupdateonenergyandtaxcredits

• Leanaccountingforcontinuousimprovement

• ACPAfirm’sdecisiontodevelopapractice niche on sustainability

• Small/mediumenterprisesustainability assessment and benchmarking tool

• A4-Squarebusinessprocesstoimplement a sustainability strategy and possible consulting opportunities for accounting firms

“Rather than treating sustainability as primarily a response to legal and regulatory compliance, more and more companies are adopting sustainability as a core business philosophy and incorporating these practices into all aspects of their businesses.”

Emerging Trends in Accounting: Corporate Sustainability

ATTORNEYS AND COUNSELORS AT LAW

Joseph D. (Joe) Clark, Esq., 1201 Main Street, Columbia, SC 29201

WWW.HSBLAWFIRM.COM CHARLESTON COLUMBIA FLORENCE GREENVILLE MYRTLE BEACH WASHINGTON, DC

HELPING OUR CLIENTS NAVIGATE THROUGH GOOD TIMES AND BAD

Haynsworth Sinkler Boyd has one of the largest and most experienced corporate and business law practices in South Carolina.

Our corporate and business attorneys meet the needs of business clients, both large and small, for advice and counsel with organization and governance, mergers and acquisitions,

Let us help you prepare for the economy’s next bullish market.

TRANSFORMING THE BUSINESS LANDSCAPE


CATAWBADues: $60, includes discounted registration to CPE seminars and free family/networking event• August: Annual Business Meeting• September 20: Professional Issues

Update (4 hours, 70411RH)• September: CPE Seminar (8 hours)• November: Annual Tax Update (8 hours)• Winter: Family/Networking Event

CENTRALDues: $50, includes discounted registration to CPE seminars, free Oyster Roast, Family Day and Business Meeting Dinner; invitation to Professional Night and Golf Tournament• September 22: Annual Business

Meeting Dinner (CEABM11) • September 23: Professional Issues

Update (4 hours, 70411CO)• September 27: Mastering the

Applications of Budgeting While Side Stepping the Pitfalls, Ron Rael

(8 hours, CE92711A)• October 14: Annual Oyster Roast &

Harvest Hope Food Bank Drive • November 10: Corporate Law for

Accountants (3 hours, CE111011)• November 30: Tax Update (8 hours, CE113011)

COASTALDues: $130, includes free registration to CPE seminars (additional registration fee for Tax Update) and free registration to family/networking event• September: Annual Business Meeting • September 20: Technology Update

with Randy Johnston (6 hours) and Current Tax Update with Jason Sweatt (2 hours) (CO092011)

• September 29: Professional Issues Update (4 hours, 70411CH)

• October 27: Federal Tax Update with Jack Surgent (8 hours, CO102711)

FOOTHILLSDues: $40, includes discounted registration to CPE seminars and three free social/networking events• August 4: A&A Update, Russ

Madray (8 hours, FO080411)• September: Annual Business

Meeting• October: Student Night• November 10: Professional Issues

Update (4 hours, 70411SP)• November 18: Corporate Tax

Update (4 hours, FO1118AM)• November 18: Individual Tax

Update (4 hours, FO1118PM)• December: CPE Seminar• December: Social Event

GRAND STRANDDues: $125, includes free registration to CPE seminars; Holiday Party and Student Recruitment Fair• August 26: Professional Issues

Update (4 hours, 70411MB)• September 20: Annual Business

Meeting (GRABM11)• September 21: Meet & Greet

with CCU Accounting Students (GRSN11)

• November 11: A&A Update with Mark Hobbs (8 hours, GR1119A)

• December: Holiday Dinner/Social

PEE DEEDues: $50, includes discounted registration to CPE and free social events• August 25 a.m.: 4 hours CPE before

Professional Issues Update• August 25 p.m.: Professional Issues

Update (4 hours, 70411FL)• September: CPE Seminar (4 hours)• September: Annual Business

Meeting• November: Chapter/Student

Bowling Night

PIEDMONTDues: $50, includes registration for CPE at a nominal fee and free holiday luncheon• August 18: Corporate FIT/Sales Tax or

International Tax/UCP, 1099, Wage (4 hours PITMG1)

• September 22: Property Tax/Canadian Tax or Tax Managers/SALT, Income(4 hours PITMG2)

• September: Annual Business Meeting • September 29: Corporate FIT/Sales

Tax or International Tax/UCP, 1099, Wage (4 hours PITMG1)

• November 11: Professional Issues Update (4 hours, 70411GR)

• November 17: Corporate FIT/Sales Tax or International Tax/UCP, 1099, Wage (4 hours PITMG1)

• December 15: Property Tax/Canadian Tax or Tax Managers/SALT, Income(4 hours PITMG2)

• December: Annual Holiday Charity Luncheon

SEA ISLANDDues: $135, includes free registration to CPE seminars and two special events, Tax Breather Social and Professionals’ Night• September 30: Professional Issues

Update (4 hours)• September 30: 4 hours CPE following

Professional Issues Update• September 30: CPE (4 hours)• November: Professionals’ Night • December: CPE (8 hours)

chapter eventsFocus On Membership

ATTORNEYS AND COUNSELORS AT LAW

Joseph D. (Joe) Clark, Esq., 1201 Main Street, Columbia, SC 29201

WWW.HSBLAWFIRM.COM CHARLESTON COLUMBIA FLORENCE GREENVILLE MYRTLE BEACH WASHINGTON, DC

HELPING OUR CLIENTS NAVIGATE THROUGH GOOD TIMES AND BAD

Haynsworth Sinkler Boyd has one of the largest and most experienced corporate and business law practices in South Carolina.

Our corporate and business attorneys meet the needs of business clients, both large and small, for advice and counsel with organization and governance, mergers and acquisitions,

Let us help you prepare for the economy’s next bullish market.

TRANSFORMING THE BUSINESS LANDSCAPE

Central CoastalFoothills Grand Strand Piedmont

South Carolina

CPA

South Carolina

CPA

South

Carolina Association

Certi�ed Public Accountants

QUALITY CHAPTER AWARD


Henry Ford once said, “Whether you believe you can, or you believe you cannot, you will always be right.” In my experience,

women often lack self-confidence. One of the most pervasive problems facing senior level women is bringing visibility and notice to their achievements. Women often feel uncomfortable drawing attention to themselves under the assumption that they will appear to be “bragging” about career accomplishments. For instance, women may give credit to their direct reports for team achievements at the expense of themselves. While giving credit to team members is important, it’s also critical that women “toot their own horns” as well. In the study, Men and Women: Differing Drivers in the Development of Senior Executive Talent, researchers suggest that firms focus developmental efforts on encouraging women to speak about their contributions and to provide assistance in support of such a dynamic. Coaches and mentors can prompt women to identify and articulate strengths then help these women harness the positive attributes to improve their own self-perception and the perceptions of others.

Women’s Rise in the Workplace: Three Key Areas of Development

by Debbie McDonough, CPASCACPA member since 1990

Differences between men and women have been the heart of jokes, anecdotes and good-natured ribbing for centuries. Recent gender studies, however, show that these differences are no laughing matter and in some cases may hold women back

professionally. Three specific areas in which women tend to struggle developmentally are in relation to self, relationships and the future. But even though such challenges exist, they can be overcome, and accounting firms should consider resources to help make that happen. SCACPA’s Women in Leadership Conference on Nov. 17 will be one such opportunity for women to receive training in these key areas.

Overloaded, women often lack the time to engage in the social networking that is essential for advancement. Harvard Business Review’s article

Women and the Labyrinth of Leadership offers the following description of managers who advance rapidly up the corporate ladder:

Fast-track managers “spent relatively more time and effort socializing, politicking, and interacting with outsiders than did their less successful counterparts…”

This implies that networking plays a significant role in the advancement of women in the profession. These relationships should start when women are first hired as employees and be nurtured over time so that internal and external networks have solidified prior to the time the employee is faced with business development goals. Accounting firms must give women the tools to successfully build these relationships through networking training and through the creation of opportunities to apply this training.

DevelopingSelfDeveloping

Relationships


WOMEN IN LEADERSHIP CONFERENCEDon’t miss the opportunity to learn more about women in the workplace, finding your balance, networking and staying motivated at the 2011 Women in Leadership Conference. Visit www.scacpa.org/conferences for details and to register.

OVercOMiNG THe cHALLeNGeSince more than half of today’s accounting graduates are women, public accounting firms simply cannot remain competitive nor have enough partners for proper succession without retaining and developing women. Even after years of progress, women still make up less than 25 percent of the owners in public accounting firms. Women’s initiatives, established in many companies, should consider focusing on the above development areas for women. SCACPA recognizes these needs and has designed this year’s Women in Leadership Conference to tackle some of these issues. This year’s conference will offer topics in professional vision and networking for results as well as leading in your community and steps for motivation in the workplace. n

Without a destination in mind, it’s difficult to arrive there. Women are pulled in multiple directions by clients, bosses, staff and family. As a result, women often focus on meeting

short term demands and overlook the importance of creating a long term strategic vision. In another recent Harvard Business Review article, Women and the Vision Thing, the authors, who surveyed 2,816 executives from 149 countries, link the fact that women are in a minority in the top ranks of business organizations to a woman’s perceived lack of vision. This lack of vision may be as broad as their ability to recognize new opportunities and trends in the environment to developing a new strategic direction for an enterprise – or even formulating their own career goals. Career planning gives women a strong foundation on which to make choices, both at work and at home. Formulating a career vision is one of the most important activities a woman can do for herself. Personal empowerment is a key byproduct of effective career planning. An increased awareness of personal goals will lead to greater control in life and result in the ability to more clearly and decidedly make choices.

Debbie McDonough, CPA is a senior manager at Elliott Davis, LLC where she serves as chair of the firm’s Women’s Development Council. Debbie is a member of SCACPA’s Women to Watch Awards Task Force.

South Carolina

CPASouth Carolina Association of Certi�ed Public Accountants

Women in Leadership ConferenceNovember 17, 2011 | Embassy Suites, Columbia

Find Your Balance

CALL FOR NOMINATIONS!2011 Women to Watch Award winners will be recognized

at this event. Submit your award nominations to SCACPA

by Aug. 12, 2011. For award details and nomination

requirements visit www.scacpa.org/womentowatch.

Auditor Malpractice IssuesConsulting/Expert Witness

Peer Review & InspectionsOver 500 System Reviews

Conducted Nationwide

D i r e c t ( 8 0 3 ) 6 0 8 - 8 0 6 6 E m a i l J o h n f h @ a o l . c o m

John F. Hamilton, CMA, CPAHamilton, McKinney & Moss

Developing the Future


“With ‘too much’ work to do, people are willing to

share that work and the re-sponsibility and information that goes with it. They are grateful for help, and they don’t perceive those who help them as threatening,

because these people have all they can handle, too.”

Jim Collins, in his best-selling book Good to Great, observed that companies that successfully transitioned from being merely good to becoming truly great had fewer procedural controls but far stronger cultural controls. These management teams were able to challenge each other, even the CEO, and hold each other accountable. The result was organizations that were more focused and more nimble.

In his biography, Legendary General Electric CEO Jack Welch said that as he became more experienced he began to appreciate corporate culture’s role more and more. Eventually, he believed that managing corporate culture was not the most important thing, it was the only thing.

My own experience as a turnaround consultant tells me corporate culture is often an organization’s root problem. Struggling management teams often fail to be honest and candid with each other. Often, everyone knows what the team must do, but everyone is unable to discuss the tough issues because talking about the company’s challenges would set-off political maneuvering that would quickly consume all the organization’s time.

How can your organization substantially improve performance? Perhaps you should begin by asking what your management team can do to provide more trustworthy leadership. n

John L. Daly, MBA, CPA, CMA, CPIM, is a Chelsea, Michigan based management consultant specializing in pricing, costing and business turnarounds. Earlier in his career, John was chief financial officer for a medium-sized Tier 1 automotive parts supplier. He has also been CFO for a large restaurant chain and COO for a manufacturer of window treatments. John is the author of Pricing for Profitability, published by Wiley & Sons. He is a frequent seminar presenter for Executive Education, Inc. Forty North American accounting associations present Executive Education’s seminars.

______________________________________________________1. Crucial Confrontations: Tools for Resolving Broken Promises, Violated Expectations and Bad Behavior, by Kerry Patterson, Joseph Grenny, Ron McMillan and Al Switzler, McGraw-Hill, 2005.

The Productivity of Trustworthy Leadershipby John L. Daly, MBA, CPA, CMA, CPIMExecutive Education, Inc.

Have you ever noticed some teams are super produc-tive, while others seem to take forever to accomplish anything?

Many organizations are unfulfilling places to work. Manage-ment doesn’t trust employees, employees don’t trust man-agement and managers may not even trust each other. This results in high political activity levels that drain the organiza-tion’s productivity.

How does a management team create an environment of open-ness, honesty and trust? A good beginning is to be trustwor-thy.

Many managers believe that employees should trust them be-cause they always tell the truth. Trust is more than that. Trust requires honesty, candor and reliability.

u HONESTY

Honesty is more than telling the truth. What we say should always be factually correct. However, trust is just as much about what we don’t say as what we do say. If we give our team members voluminous facts, but leave out important news affecting their jobs and lives, people will not trust us. Hence, the role of candor.

u CANDOR

In efficient organizations, there is a psychological bond between management and ordinary employees. Company leadership is candid with team members, and shares things affecting them. Management looks after the entire team’s best interests. In exchange, employees look after management’s best interests.

u RELIABILITY

We can be open and honest, but people still will not trust us if we don’t follow through on our commitments. One broken promise can quickly undo all of our efforts to be honest and candid.

The authors of Crucial Confrontations1, cite a 40% productiv-ity improvement in companies where management attended training in open and honest communications.

Paul Hawken, in his classic entrepreneurship book, Growing a Business, believed it was best if organizations were slightly understaffed.

Mr. Daly’s colleague, Diane D. White, MBA, CPA, CMA will speak about The Trustworthy Leader at the CPAs in Business and Industry Conference on Friday, Oct. 14. Register now!


Mr. Daly’s colleague, Diane D. White, MBA, CPA, CMA will speak about The Trustworthy Leader at the CPAs in Business and Industry Conference on Friday, Oct. 14. Register now!

Don’t miss this opportunity! save the date, learn more and register at www.scacpa.org/summit!

INSIGHT. Discover a variety of learning and networking opportunities that offer the insight you need to stay relevant and current, and develop relationships you need to benefit you in the future.

INSPIRATION. Slow down for a few days, and discuss issues and solutions with your peers and industry leaders that will have you inspired and equipped to get things accomplished.

IMPACT. Take advantage of the opportunity to be challenged by your peers and industry leaders and be inspired with the insight and confidence you need to make an impact.

Insight. Inspiration. Impact. Discover all of this in two days. At this premier event you will find insight and inspiration that will have you ready to make an impact! The summit offers over 48 credit hours across three educational tracks.

Summit Highlights:u Annual Business Meeting (SCACPA

eligible members only)u Member Receptionu Circle of Excellence Awards

Luncheon, honoring SCACPA’s 2011 award recipients

u Student Recognition Luncheon, honoring 2011-2012 SCACPA scholarship recipients

u New CPA Oath Ceremony, honoring April – September 2011 newly licensed CPAs in South Carolina

u Young CPAs Receptionu Old Guard Reception

u Managing Partners Breakfastu Special Workshop for Accounting

Students and CPA Candidatesu 17 hours of unique CPE, offering the

hottest topics and speakers in three different tracks!

Discussion Leaders:- David Aughtry, Chamberlain, Hrdlicka,

White Williams & Martin- Pete Baney, Automatic Data Processing- Jason Blumer, Blumer & Associates,

CPAs, PC- Doris Cubitt, SC Board of Accountancy - Erik Doerring, McNair Law Firm- Jane Downey, Moore Taylor and Thomas- Michael Grady, WR Sequence, LLC- Erin Hardwick, SCACPA- John Higgins, CPA Crossings - Mark Hobbs, The Hobbs Group, PA- James King, WebsterRogers, LLP- Pete Margaritis, Business Learning

Institute

- Jay Matthews, Haynsworth Sinkler Boyd, PA- Ken Newhouse, Sellars, Cole and

Bachkosky, LLC- Mark Riley, American Benefits- Christopher Rouse, Windham Brannon- Tom Sheaffer, Internal Revenue Service - Bob Spencer, K2 Enterprises - Bob Thomas, SC Department of Revenue- Holley Ulbrich, Clemson University- Scott Voynich, Robinson Grimes & Co.- Frank Warren, Blumer & Associates,

CPAs, PC- Don West, Blytheco, LLC- Mark Witte, College of Charleston- SCACPA Lobbying Team, MG&C

Consulting Services

Sponsors and Exhibitors:u American Pensionsu Camico Mutual Insurance u WR Sequence, LLC

ColumbiaMetropolitanConventionCenter• Nov.3-4, 2011

I n s i g h t . I n s p i r a t i o n . I m p a c t .


OcTOBer 13-14, 2011 industry conferenceBuoy Your Success

Buoys are water traffic signs that provide direction and information. They also help identify danger areas and restricted zones. The only way to know what the buoy means is with a marine chart. Let SCACPA serve as your marine chart and help you buoy your success in this unstable economy with information provided at the 2011 CPAs in Business & Industry Conference

OcTOBer 20, 2011Personal financial Planning conference Managing Your Risks

Risk management in financial planning is the systematic approach to the discovery and treatment of risks. The objective is to minimize worry by dealing with the possible losses before they happen. Attend this conference to hear the latest on the economy and professional resources available to assist you in developing a strategy to manage your risks as well as your clients.

NOVeMBer 3-14, 2011cPA Annual summit in conjunction with the Tax & Technology conferencesInsight. Inspiration. Impact.

Insight. Inspiration. Impact. Discover them all in two days. At this premiere event you will find insight and inspiration that will have you ready to make an impact! The summit offers

over 48 credits across three CPE tracks with hot topic bonus sessions that allow you to earn 17 hours over two days. You will also have time for social activities such as networking with colleagues, sponsors and exhibitors over breaks and two special lunch programs that recognize the 2011 SCACPA award winners and South Carolina accounting students that received 2011 educational scholarships from the SCACPA Education Fund.

NOVeMBer 15, 2011Governmental Bonus workshop Hot Off the Press

The term “hot off the press” is applied especially to newspapers. The term only really makes literal sense for printed items which use the hot metal printing process. However, by extension it is also used figuratively to refer to anything that is fresh and newly made, which is what you will get at this event. This workshop will cover the latest in four different areas of governmental: the revised Yellow Book Standards, SAS 99, GASB 54, and eliciting information during the audit process. Attend to get the latest information hot off the press.

NOVeMBer 17, 2011women in Leadership conference Find Your Balance

A woman’s life can be quite the balancing act. Between your professional, personal and social responsibilities, it can be difficult to decide how to divide your time among these many obligations. Take some time for yourself to learn the best ratio

2011 Fall Conferences You Don’t Want to Miss!for your life among other like-minded professional women at the Women in Leadership Conference.

DeceMBer 7, 2011emerging Trends in Accounting conference: corporate sustainability

Whether you work in public practice or in business/industry, mark your calendar now to attend this cutting-edge conference to learn more about corporate sustainability and the related opportunities and challenges impacting our profession. Hear various perspectives from knowledgeable presenters and leave the conference with a deeper understanding of corporate sustainability and your role in this emerging trend.

DeceMBer 8-9, 2011Accounting & Auditing conference Count Me In

As accountants know, an abacus is a calculation tool, often constructed as a wooden frame with beads sliding on wires. It was in use centuries before the adoption of the written numeral system. Just as the use of calculation tools have changed over the years, so does accounting and auditing. We have developed this conference with the idea of keeping you up with the latest in this area. Make sure we count you in for this last chance A&A conference in beautiful downtown Charleston.

For more details on each of these events or to register securely online visit www.scacpa.org/conferences. n


TAXATiONSeptember 7, 2011Estate and Gift Taxation- The New Law (75211) City: West Columbia Credits: 8

GOVerNMeNTSeptember 13, 2011 Now I See! Comprehending OMB A-133 (75511A) City: West Columbia Credits: 8

TecHNOLOGYSeptember 27, 2011 Top 50 Security Measures for CPAs-50 Proven Measures for Protecting Computers, Data, Employees, & Assets (76711) City: Columbia Credits: 8 AccOUNTiNG & AUDiTiNGSeptember 28, 2011 Common Frauds and Internal Controls for Revenue, Purchasing and Cash Receipts (76811A) City: West Columbia Credits: 8

weBcAsTsOctober 13, 2011Ethics in the Real World (WEBAEIR9) City: Online Credits: 2

sATeLLiTeOctober 26, 2011 Partnerships & LLCs Update (77311SW) City: Satellite Credits: 8

NONPrOfiTNovember 21, 2011Non-Profit Financial Management: Critical Competencies, Knowledge and Tools (78211) City: West Columbia Credits: 8

MANAGeMeNTDecember 2, 2011 Increasing Both the Top and Bottom Lines (78711) City: West Columbia Credits: 8

2011 SCACPA CPE

We have a class for that.

Government

Accounting& Auditing

Nonprofit

Technology

Management

Taxation

Webcasts Satellite

South Carolina

CPA


ADVERTISER INDEX

Accounting Practice Saleswww.accountingpracticesales.com

Inside Back Cover

ADPwww.adp.com

Page 22

Aon/BB&T Insurance Services/AICPA Professional Liability Insurance Program

www.cpai.com Page 4

American Pensionswww.ampen.com Inside Front Cover

Blytheco www.blytheco.com

Back Cover

Camico www.camico.com

Page 26

John F. Hamilton, [email protected]

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Haynsworth Sinkler Boyd, P.A. www.hsblawfirm.com

Page 30

McAngus Goudelock & Courie, LLCwww.mgclaw.com

Page 28

OFFICE SPACE AVAILABLE Unique Opportunity I am a CPA based in the Charleston suburb of Daniel Island nearing retirement . If you are a CPA looking to open your own office, or a small firm seeking a new office, we should talk.

I have been downsizing my practice for several years, however I still have many great clients who will need the services of a strong tax oriented CPA. Additionally, there is great potential for growing a tax practice here on Daniel Island.

My office is up and running, including everything you need – truly move-in condition. In addition to being fully furnished I have networked computers and printers, great software (Creative Solutions and Lacerte), copy machine, fax, etc., etc. The office is a 1,300squarefootstorefrontonthemain‘downtown’streetofbeautifulDanielIsland,a growing upscale East Cooper bedroom community. As is, three or four people would haveplentyofroom;withminorchangesthatnumbercoulddouble.There’samplefree street parking for clients and more for staff in a lot behind the office. The rent is reasonableandtheleasecouldbeextendedformanyyears.There’salsoaweb-site(whichcouldusesomeattention)andaphonenumberendingin‘1040’.

If this sounds interesting, drop me an email, [email protected].

fort Mill – rock Hill sc Tax & Accounting Practice – Gross Income $182k Focus is on Tax and Accounting services for small businesses and individuals. The firm is in a very appealing location. The location, combined with effective marketing and strong service enabled the firm to increase gross revenue through the recession. Outstanding Opportunity for an individual to have his or her own practice or for an existing firm to expand its business. Owner will assist with financing if needed to secure SBA loan.

Asking Price $180k. Contact Bill Britt at 1-866-768-0089 or [email protected]

OTHERBoard Member Needed by Richland Tuberculosis Association (RTBA), a401(c)(3) non-profit in Columbia. Founded in 1917, the mission of RTBA is to promote and assist in the elimination of TB through education, collaboration, research and practice. Visit RTBA at Richlandtb.com. For more information, contact Board Member Tom Alewine, EA at (803)790-0666 or email at [email protected].

Oblique Hanging file system complete with filing structure (black) and legal folders (orange). Approximately 18 units available. Can be installed for reasonable fee. Original cost was approximately $17,000. Asking $3,600 for all. Call Mike Williams, CPA, 803-794-1328 ext. 2.

AD SPACE AVAILABLE Get Your Ad in front of the right AudienceWhetheryou’relookingforapotentialbuyer,renter,consumerornewstaffmember,the CPA Report will put your ad in front of more than 4,000 CPAs and accounting professionals in South Carolina. Classified advertising rates are $1 per word for members and $2 per word for nonmembers with a $30 minimum. Contact Emily Allen at [email protected] or call 803-791-4181 to find out more.

GETCONNECTEDGet Social with SCACPA on Facebook, Twitter,

LinkedIn and Wordpress!

Visit www.scacpa.org/socialmedia

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Please visit our team’s brand new website to learn more about The Seamless Transition™ at www.PoeGroupAdvisors.com

Exceptional CPA practice by all measures. Owner has prior big-8 as well as mid-size firm experience and has built a great practice located in a wonderful community. Firm has excellent clients, paperless office, desirable location, efficient systems

and quality staff in place…just to name a few of the strengths of this business. There is no audit work and owner has been very selective about which clients to accept. Future growth potential is strong and past growth has been consistent.

This could make an excellent addition to an area firm, or a great opportunity for someone with similar experience to strike out on their own.

Well established firm with very strong employees. The Charleston area is a wonderful place to live and work. The area offers great recreation, entertainment and a good business environment. The “low country” of South Carolina

is one of the most beautiful areas around with excellent beaches nearby.... and historic downtown Charleston is very unique.

Great CPA Practice with huge potential!!!!! Excellent cash flow to owner! Exceptional practice with potential for growth. Loyal clients with an opportunity to increase billings. Very good systems in place, turn key operation. Great location in

a great community. Practice could be easily grown with an energetic practitioner.

Using real-world scenarios, practice owner testimonials,

and written exercises, CPA and author Brannon Poe offers keen

insights for developing customized, straightforward approaches

to hone your focus, eliminate frustration, grow your bottom line,

and achieve meaningful work-life balance while increasing profitability.

www.accountantsflightplan.com for more information

Selling? Our clients:1. Maximize the value of their practice. 2. Experience The Seamless Transition™, our unique process.3. Help their buyer succeed.

Using a consultative approach, we help you design, plan, and implement a successful transfer that you can be proud of.

The cumulative effect of years of marketing exclusively to the accounting profession, combined with our time-tested system of

identifying suitable candidates, topped-off with experience-driven transition planning – achieves your intended results.

PRSRT STDUS POSTAGE PAIDPERMIT NO. 1146

Columbia, SC

south carolina Association of cPAs570 Chris Drive, West Columbia, SC 29169

3Q2011 CPA Report

Documents

Transcript of 3Q2011 CPA Report