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THE OFFICIAL MAGAZINE OF THE VIRGINIA SOCIETY OF CPAs

SPRING 2021

VSCPA.COM/DISCLOSURES

TRAILBLAZING tech

A career in FP&A Quality management standards Honoring Martha Mavredes, CPA

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CONTENTS

Features 18

Trailblazing tech: What you need to know Leverage five emerging technologies to enhance your business model and create a winning experience.

24 28

Embarking on an FP&A career Building a culture of trust: Martha Mavredes, CPA

Columns 8 Practice Management CPA firm compensation 12 Auditing Auditing standards exposure drafts

FIND US... WEBSITE vscpa.com CONNECT connect.vscpa.com TWITTER @VSCPANews

Departments

LINKEDIN tinyurl.com/ LinkedInVSCPA

From the CEO

Line Items

FACEBOOK facebook.com/VSCPA

10 Advocacy 32

VSCPA News

Classifieds

INSTAGRAM instagram.com/VSCPA PODCAST vscpa.com/ LeadingForward

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SPRING 2021

FROM THE CEO

4309 Cox Road Glen Allen, VA 23060 (800) 733-8272 vscpa.com

disclosures vscpa.com/disclosures disclosures@vscpa.com SPRING 2021 Volume 34, No. 2 Managing Editor Jill Edmonds disclosures@vscpa.com Editorial Task Force Olaf Barthelmai, CPA Cheri David, CPA Melisa Galasso, CPA Genevieve Hancock, CPA Karen Helderman, CPA Harold Martin Jr., CPA Anthony Otaigbe, CPA David Peters, CPA Mark Plostock, CPA Zach Shoaf, CPA Barbara Sukramani, CPA Disclosures is published six times a year by the Virginia Society of Certified Public Accountants (VSCPA). The magazine’s mission is to communicate information of value to VSCPA members, including professional issues and VSCPA initiatives. The materials and information in Disclosures are offered as material only and not as practice, financial, accounting, legal or other professional advice. Statements of fact and opinion are made by the authors alone and do not imply an opinion on the part of VSCPA officers, members or editorial staff. Publication of an advertisement in Disclosures does not constitute a VSCPA endorsement of the product or service. Copyright © 2020 Virginia Society of CPAs.

VSCPA Preferred Providers

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SPRING 2021

Hiring help is here Recruitment, retention, the gig

economy, onboarding, remote employees … If any of these topics have come up recently at your firm or company, you’re not alone. We’ve heard a lot from CPAs around the state over the past year about challenges in recruitment and retention — and those issues have only been heightened during the pandemic. A recent report from Robert Half on talent demand in the COVID-19 landscape finds companies are pivoting and adopting new hiring practices — particularly as candidates with the most in-demand skills are difficult to find. Some of these tactics include trying to lure passive job seekers, casting a wider geographic net, and becoming more accommodating to permanent remote work. To make sure we’re giving you what you need, we’re launching enhanced careerrelated resources, including a new and improved online Career Center. In partnership with YM Careers, our new Career Center will allow you to easily post jobs to find qualified talent around the state (or even the country, if you prefer), with discounted member pricing. A new Job Flash email will put your open position in front of job seekers, and you can post internships for free. And if you’re job hunting, advanced search features and free résumé review can help connect you to your next opportunity. Find it at careers. vscpa.com. A new Career Resource Center at vscpa. com/CareerResources contains articles, whitepapers and more for firms and companies, job seekers, new CPAs, CPAs thinking about a job change, and students. We’re also pushing out news and information on career topics in our social media feeds, e-newsletters and even Disclosures. (See page 24 for info on the FP&A career field.)

To make sure employers can create competitive compensation and benefits structures, the VSCPA and Whorton Marketing & Research conducted a compensation and benefits survey among public accounting firms. See page 8 for more information and how to get your copy. And if you’re wondering how to jump into the gig economy, a new VSCPA partnership with Accountingfly could assist you. Accountingfly hires U.S.-based remote accounting talent and employers and offers seasonal, temporary and permanent placements. VSCPA members can receive a discount (see vscpa.com/ PartnerDiscounts for more). We know you want to make sure you’re providing the highest-quality service to clients and also employing the brightest talent and new, energized CPAs. We are always looking for more ways we can help! Have ideas? Contact me anytime at speters@vscpa.com. n

Stephanie Peters, CAE, has served as VSCPA’s president and CEO since 2007. speters@vscpa.com @StephPeters

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SPRING 2021

LINE ITEMS

Kickstart your career or connect with exceptional talent Enhanced VSCPA Career Center, new resources, member discounts and more. Looking to recruit the best talent or find a new opportunity? The VSCPA

has you covered with enhanced career resources and a new Career Center, in partnership with YM Careers, that allows you to easily find and post jobs. What you can expect: • Easy access: Sign in with your VSCPA account and experience a seamless transition of your previous account and job postings with the new interface. • For job seekers: Advanced search features allow you to quickly and easily search for jobs. Upload your résumé and get customized job alerts with the VSCPA Job Flash email. Also take advantage of free résumé review services. • For employers: Find new packages and larger networks for job postings with discounted member pricing. Add your post to the VSCPA Job Flash email and post internships for free! Also, take advantage of discounted pricing for contract employees through our partnership with Accountingfly. Visit careers.vscpa.com to find the Career Center, resources and more!

Watching weed On Feb. 27, 2021, Virginia became the 16th state to legalize recreational

marijuana use, although commercial sales will not start until 2024 and the bill contains a reenactment clause so will need to pass again in 2022. Additionally, Virginia is the first state in the south to legalize. The bill passed by the General Assembly will allow possession of up to an ounce by anyone over age 21. A state agency will be established to oversee cannabis regulation. Cannabis is a hot topic for CPAs because it has tax and business implications; CPAs in many other states are issuing guidance on how to account for cannabis sales and other issues legalization raises. The pandemic will bring lasting change to the cannabis market, as argued by Ryan Cram, CVA, and Ron Seigneur, CPA/ABV, in their November/December 2020 Disclosures feature, “Illicit to essential: Cannabis in a post-COVID-19 world.” “Moving the image of legal cannabis from illicit to essential has been huge and brought about changes that would not have happened nearly as quickly as they have since coronavirus hit,” the authors state. Find the full article at vscpa.com/ cannabis-after-covid.

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SPRING 2021

COVID AND FINANCE: ONE YEAR LATER A global report from the Institute of Management Accountants (IMA) reveals the impact of the pandemic on the finance function of organizations, from organizations as a whole to the effect on revenue and staffing levels. Finance can be part of the solution to rebuilding and reopening in the coming months, the report says. “As companies look to reconfigure their businesses, the finance organization can play a key role in helping them stabilize operations and strategize for the future.” A few takeaways: • Companies saw a decline in revenue across the board, with large corporations (more than $10 billion in revenue) taking the largest hit. • Among 10 industries surveyed, travel/ hospitality reported the largest decrease in revenue (unsurprisingly). Accounting and finance reported the least amount of considerable, negative fiscal impact. • While approximately half of companies surveyed had decreased staffing levels, U.S. companies were the least likely to reduce staff and also the least like to cut compensation. • Companies are now spending much more time on risk management than in the past, followed by cash forecasting/management. Download the full report for more statistics at imanet.org.

ATTENTION STUDENTS You can take advantage of the Career Center, too! Search for internships, use free résumé review services, find scholarships and learn more about becoming a CPA!

LINE ITEMS

TICKER 55 The average number of hours worked per week by CPA firm employees in Virginia during tax season.

85 The percentage of firms in Virginia that offer flexible work hours.

2 The number of states that do not have any sort of balanced budget requirements (North Dakota and Wyoming), although stringency varies among states.

33 The number of states with strong balanced budget requirements, as identified by the Urban-Brookings Tax Policy Center. (Virginia makes the cut.)

55 The percentage of multi-owner firms that are currently experiencing succession challenges.

26 The percentage of multi-owner firms that were experiencing succession challenges in 2016.

33 The percentage of Americans who have never checked their credit report.

68 Among those who do check their credit report, the percentage who found inaccuracies.

Waiting on winter… Virginia CEOs predict more ‘normal’ business functions late this year. In the Q4 2020 Economic Outlook Survey of Virginia CEOs, the Virginia Council of CEOs and University of Richmond Robins School of Business asked respondents when they expect business as usual to become more normal — with “normal” defined as no masks and working in person. The majority — 43% — predict late 2021, with another 29% saying sometime next year. And a full 10% have no expectation of a return to normalcy. And, once “normal” returns, what do CEOs expect to change? The new working world will likely include more remote work options with videoconferencing and hiring with remote interviewing. Find full survey results on the Virginia Council of CEOs website at vaceos.org.

NEW TAX SCAM

WATCH FOR SHADY EMAILS ASKING FOR YOUR EFIN! The IRS and its Security Summit partners are cautioning tax pros to watch out for a new scam email that impersonates the IRS and asks the recipient to reveal their Electronic Filing Identification Number (EFIN). Arriving at the start of this year’s tax season, the new scam shows that tax professionals are a high target for criminals. “Tax professionals must remain vigilant,” IRS Commissioner Chuck Rettig said. “The scammers are very active and very creative.” This particular email is from sender “IRS Tax E-filing,” with the subject line “Verifying your EFIN before e-filing.” The IRS warns all tax pros to not take any steps outlined in the email, especially responding to the email. If you receive it, save it as a file and send as an attachment to phishing@irs.gov. Before every tax season, it’s a good idea to refresh yourself and your staff with reminders on identity theft and data protections. Review IRS Publication 4557, “Safeguarding Taxpayer Data,” and the “Identity Theft Information for Tax Professionals” webpage, both available at irs.gov.

WHAT’S A CHIEF TAXPAYER EXPERIENCE OFFICER? Sound new? It is. This new IRS position will help unify and expand efforts across the agency to serve taxpayers. It’s the first senior leadership role in the IRS created under the Taxpayer First Act.

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SPRING 2021

PRACTICE MANAGEMENT

The Virginia landscape of CPA firm compensation When it comes to total compensation and benefits,

how do firms across Virginia stack up? To help them determine compensation and benefits structures, the VSCPA and Whorton Marketing & Research conducted a compensation and benefits survey among public accounting firm members in November and December 2020.

Most respondents (86%) have paid time off. Full-time staff receive a mean of 18.3 days in the first year of employment, 20.6 days at their third anniversary, 22.9 days at their fifth, 26 days at their 10th, and 27.2 days at 15 or more years of experience.

The survey determined the mean and median salaries offered across the state at all levels of employment, as well as other issues related to benefits like paid leave and insurance. Other survey questions touched on staff turnover, diversity, the effect of COVID on work arrangements and more.

The most common benefits available to employees is medical insurance (76%), with 60% providing medical for dependents/families. Others include matching contributions for retirement programs (75%), professional membership dues (71%), professional license/credential reimbursement, and bonuses for passing the CPA Exam (55% each).

While a vast majority of firm respondents conduct tax services (93%), audit came in at 56%, consulting services at 37%, and outsourced accounting or bookkeeping at 32%.

KEY COMPENSATION FINDINGS The mean salary level for an entry-level accountant at a public accounting firm in Virginia is $51,121. Salaries increase from there, with first-level supervisors making a mean of $75,110 and partners a mean of $210,780. Respondents were also asked for salary information on a variety of other positions, including paraprofessionals/ bookkeepers, marketing, finance and IT. Staff who work in specialty areas do earn more than generalists, and CPAs earn a mean of 15% more than non-CPAs. The average percentage for raises was a mean of 4% between October 2019 and 2020, and respondents indicated it will be the same for the 2020–2021 period. Unsurprisingly, mean bonus targets generally rise with income and experience. And in the quarantine age, how did firms do with staff retention? Overall, respondents show slight growth, losing a mean of 4.6/median of 1.0 staff, and hiring a mean of 5.6/median of 1.0.

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KEY BENEFITS FINDINGS

SPRING 2021

In the COVID age, 49% now offer flexible work arrangements, and it looks like remote work is here to stay for many firms. Looking into the near future, 22% plan to have staff remain full time in the office, with 33% having most time working at home and 40% some time. n

GET THE FULL REPORT Access a complimentary copy of the survey’s executive summary or purchase full results at tinyurl.com/VSCPAcompsurvey. Full results include: •

Detailed compensation for each position level by geographic location, including salary, raises and bonuses.

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Information broken down by firm size: small (1–5 staff), medium (6–15) and large (more than 15 full-time employees).

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Demographic information on firms, including diversity programs and other recruitment and retention activities.

•

Much more!

Let’s Move Forward — Together

Paychex supports accounting professionals with resources and tools to help enhance consultations with clients. • AccountantHQ: Manage client payroll and HR data from a single dashboard designed specifically for accountants. payx.me/ahq • Accountant Knowledge Center: Find up-to-date resources — CPE self-study courses and the 2021 online U.S. Master Tax Guide — and free online tools to help you enhance your professional development. payx.me/akc • Paychex Business Series podcasts: Join host and CPA Gene Marks as he discusses insights on latest legislation with politicians and best practices with HR managers and business owners. payx.me/vscpa-podcasts

Let us know how we can help. 877-534-4198 Paychex is proud to be the preferred provider of payroll services for the VSCPA.

DISCLOSURES

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SPRING 2021

ADVOCACY

A long two-month road to tax conformity This year’s Virginia General Assembly had to wrestle with pandemic-related relief when debating conformity. Some years tax conformity happens quicker than others. This year, unfortunately, we had to wait until the end of February to get a full vote. The complexities presented by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Consolidate Appropriations Act (CAA) made this year’s conformity process especially challenging.

Tax conformity passed the House on Friday, Feb. 26 with only two dissenters and unanimously in the Senate the next morning, Feb. 27. The legislation advanced the date of conformity of Virginia’s tax code to the U.S. Internal Revenue Code from Dec. 31, 2019, to Dec. 31, 2020. The emergency clause, which allowed conformity to go into effect immediately upon Gov. Ralph Northam’s signature, was removed from earlier bill iterations, much to accountants’ dismay, but was added back into the final versions. With Northam’s signature on March 16, conformity became official. The conformity legislation allows Virginia to conform to most U.S. Internal Revenue Code provisions through Dec. 31, 2020, including:

• COVID-19-related retirement distributions. • Above-the-line charitable contributions deduction. • Deduction limitations for certain charitable contributions. • Exclusion of educational payments. • Extension of the $300 deduction for nonitemizers to taxable year 2021. • Enhancing the charitable deduction for individuals for certain contributions. • Temporary full business meals deduction. • Extension of exclusion for certain employer payments of student loans. • Depreciation of certain residential rental property over a 30-year period. • Temporary enhancement of the EITC. • Repeal of the deduction for qualified tuition.

DEADLINE DELAYS March brought a flurry of tax delays causing consternation for tax professionals. On March 17, the Treasury Department and IRS announced a federal income tax filing due date delay for individuals until May 17, 2021. But that was problematic because estimated tax payments were due as usual. We reached out to federal legislators advocating a further delay and also asked VSCPA members to contact their representatives. At press time, no further changes had been announced. After the federal delay, we asked Virginia to follow suit. On March 17, Gov. Northam directed the Virginia Department of Taxation to also extend the state’s individual income tax deadline to May 17. The news and information have come at us quickly over the past few months. We always post breaking taxrelated news on our social media channels. See page 3 to learn how to find us!

DISCLOSURES

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SPRING 2021

ADVOCACY

With respect to forgiven Paycheck Protection Program (PPP) loan and Rebuild Virginia grant expense deductibility, Virginia will allow a deduction of up to $100,000 for tax year 2020. All previous deconformity will remain in place, such as bonus depreciation. In addition, Virginia will not conform to the following from CARES and CAA: • Extension of the 7.5% floor in the medical expense deduction. • Provisions of the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act related to the net operating loss (NOL) limitations and carryback.

• Excess business losses for noncorporate taxpayers. • Business interest deduction limitations. • Deductibility of business expenses funded by PPP loan and EIDL fund proceeds except as described above. As you know, the VSCPA sent out many Session Watch emails this winter to keep you apprised of conformity, and we asked for your help to repeatedly contact your legislators. We cannot thank you enough for your messages and calls to your elected officials to advocate for conformity. With the help of dedicated members, leaders and committee volunteers, as well as our legislative counsel and staff, we were able to secure a vote. n

ROLL CALL: TRACKING VIRGINIA BILLS In addition to conformity, the VSCPA watched and lobbied on several other bills this year. Check out the list below for details on a few and see the full list in our Bill Tracker at vscpa.com/get-involved/advocacy.

Bill Number

Description

VSCPA Position

Result

HB 1999

Allows tax commissioner to waive interest accrual for any taxpayers experiencing undue hardship under a governor-declared state of emergency.

Support

Passed.

HB 2060

Directs TAX to establish an online portal for tax practitioners. The VSCPA is expected to be involved in a study of similar systems from the IRS and other states.

Support

Passed.

HB 2059

Aligns Virginia with the IRS related to filing of delinquent returns.

Support

Passed.

HB 1956

Changes how the Virginia Department of Taxation (TAX) assesses late penalties. We will be working with TAX on reforming the tax penalty structure heading into the 2022 session.

Support

Died in House Finance Committee.

HB 2143

Offers employers immunity from civil claims related to COVID exposure or contraction.

Support

Died in House Committee for Courts for Justice without a hearing.

HB 2259

Gives the governor power to grant licenses to persons who were denied licensure by a regulatory board.

Oppose

Died in House General Laws Subcommittee.

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SPRING 2021

AUDITING

One size no longer fits all New auditing standards exposure drafts move quality management standards to principles-based approach. On Feb. 4, 2021, the American Institute of CPAs

(AICPA) Auditing Standards Board (ASB) issued a threepart exposure draft addressing quality management. Two of the exposure drafts would create Statements on Quality Management Standards (SQMS) to replace the current Statements on Quality Control Standards (SQCS). The third exposure draft would update the Statements on Auditing Standards (SAS) to incorporate the concept of a system of quality management. The project is a convergence project with the International Auditing and Assurance Standards Board (IAASB). Comments are due on Aug. 31, 2021.

Melisa Galasso, CPA

PROPOSED SQMS 1 SQMS 1 — Proposed Statement on Quality Management Standards, A Firm’s System of Quality Management, was issued to improve scalability and remove a one-size-fitsall quality control concept. Instead, a principles-based, risk-based approach to quality will be more scalable and address regulators’ concerns. Unlike extant QC Section 10, the new approach requires a firm to customize the design, implementation and operation of its system of quality management. Now, firms will be unable to simply rely solely on thirdparty practice aids. They will need to perform their own risk assessment based on the types of engagements, clients and industries and develop an appropriate response for the risks identified. The proposal asks firms to move from a policies and procedures methodology focused on standalone elements to the concept of a system of quality control that is integrated and iterative. The AICPA has updated the components of QM to include: • The firm’s risk assessment process (new). • Governance and leadership (adapted from the leadership responsibilities for quality within the firm component in QC Section 10). • Relevant ethical requirements (same name as component in QC Section 10).

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SPRING 2021

• Acceptance and continuance of client relationships and specific engagements (same name as component in QC Section 10). • Engagement performance (same name as component in QC Section 10). • Resources (adapted from the human resources component in QC Section 10). • Information and communication (new). • The monitoring and remediation process (adapted from the monitoring component in QC Section 10).

FIGURE 1: COMPONENTS OF QUALITY MANAGEMENT The risk-based approach would require a firm to establish quality objectives; some are required by SQMS 1, but additional objectives may be necessary. Then the firm would identify and assess the risks and respond by designing and implementing responses to those risks. Proposed SQMS 1 would be required to be designed and implemented by Dec. 15, 2023. The evaluation of the system of quality management required by proposed SQMS would be required to be performed within one year following Dec. 15, 2023.

PROPOSED SQMS 2 SQMS 2 — Proposed Statement on Quality Management Standards, Engagement Quality Reviews, applies to all engagements for which an engagement quality review is required to be performed as a specified response designed and implemented by the firm in accordance with SQMS 1. The AICPA continues to allow firms the flexibility to decide when a quality review is required. SQMS 2 would not apply if a firm did not identify any engagements that required a quality review based on SQMS 1.

AUDITING

The proposal would require firms to have policies and procedures on who has the authority to identify quality reviewers, as well as establish policies and procedures on the qualifications for those individuals. It also includes performance requirements that indicate what is expected of the quality reviewer. To address threats to objectivity, the proposal includes a cooling-off period of two years or longer for individuals who previously served as the engagement partner, which is consistent with the IAASB requirements. Finally, the engagement partner is precluded from dating the report until notification has been received from the engagement quality reviewer that the engagement review is complete.

key items for which the engagement partner can not delegate their responsibility. It also provides explicit requirements for the engagement partner’s responsibility for leadership, direction, supervision and review, as well as includes a stand-back provision for acceptance of overall quality. This proposal is expected to be effective for engagements conducted in accordance with GAAS for periods beginning on or after Dec. 15, 2023. As these proposals include significant changes to the firm’s processes, policies and procedures, the AICPA would love to hear from firms of all sizes. Comments are due Aug. 31, 2021. View the PDF of all three proposals at tinyurl.com/QMproposals. n

PROPOSED SAS The last proposal, SAS, Quality Management for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards (GAAS), addresses how the engagement partner leverages the system of quality control from SQMS 1 and manages quality at the engagement level (an individual audit). The proposal identifies

Melisa Galasso, CPA, is founder & CEO of Galasso Learning Solutions in Charlotte, N.C. An accounting and auditing standards expert, Melisa is a previous member of the VSCPA Board of Directors, currently sits on the Editorial Task Force, and is a nominee to AICPA Council. melisa@galassolearningsolutions.com

TAX REMOTE TALENT IT'S TIME TO HIRE

with the remote accounting experts at Accountingfly.com Tax Hiring Season: May to October

PERMANENT TALENT | FREELANCE TALENT | REMOTE WORKPLACE CONSULTING

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SPRING 2021

SPONSORED CONTENT

SECURE ACT 2.0: ON THE horizon FOR WORKFORCE RETIREMENT PLANS As Congress continues to vet the second phase of the Setting Every Community Up for Retirement Enhancement (SECURE) Act prior to voting, CPAs can begin preparing to advise their clients. You might already be getting questions about some of the changes being proposed from the first phase of the Act. • Mandate auto-enrollment across all employer-sponsored 401(k) plans. • Increase tax credit for small-employer retirement plan startup costs. • Allow businesses to join with one another to offer retirement plans to employees. • Increase the required minimum distribution age to 75. • Allow individuals to pay down a student loan instead of contributing to a 401(k) plan.

THE SECURE ACT — EXPANDING AND PRESERVING RETIREMENT SAVINGS Many Americans don’t have a way to save for retirement. The SECURE Act’s goal is to address this problem by providing incentives for businesses and easing the restrictions that hinder small- and medium-sized businesses from offering 401(k) plans.

Staying ahead of the curve in an ever-changing legislative and regulatory environment can enhance your consultative opportunities and solidify your most-trusted advisor status with clients. Read the full article at payx.me/vscpa-secure.

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SPRING 2021

THE POWER OF PEP The Pooled Employer Plan (PEP) 401(k) allows unrelated businesses to pool their assets into a single plan administered by a professional plan manager. This could give your clients a simple, cost-effective solution that eases the burden of 401(k) management. By making the 401(k) more manageable, your clients can use this in-demand plan to help attract new employees and retain top talent.

THE SECURE ACT 2.0 — GOOD FOR BUSINESS, GOOD FOR EMPLOYEES Multigenerational workforce: Today’s workplace is more generationally diverse than ever. Older employees are working longer and millennials make up roughly one-third of the American workforce. For older employees, the bill would raise the required minimum distribution (RMD) age from 72 to 75 so they can save for longer. For younger employees, they could opt to make contributions that go toward paying off student loans. These contributions would still be eligible for employer matching. Automatic enrollment encourages participation: The bill would require smaller businesses with 401(k) and 403(b) plans to be automatically enrolled. Typically, the initial enrollment amount is at least 3% and then increased each year. There is an exception for businesses based on the number of employees. To add even more convenience, businesses could integrate automatic enrollment with payroll. Increased tax credits for small business start-ups: For startup businesses with up to 50 employees, the current tax credit is equal to 50% of administrative costs, capped annually at $5,000. Under the new proposal, the 50% would be increased to 100% and businesses of up to 100 employees could qualify. In addition, the bill would give employees a $1,000 tax credit in the first year of a defined contribution plan, phased down gradually over five years. Reduced penalties to make compliance easier: Being compliant with tax regulations can be a challenge for businesses. The SECURE Act 2.0 would allow businesses and taxpayers to avoid harsh penalties for inadvertent errors. It would also protect retirees who unknowingly receive retirement plan overpayments. n

THANK YOU FOR BEING A VSCPA MEMBER RENEWAL IS NOW OPEN FOR THE 2021–2022 MEMBERSHIP YEAR. Membership Highlights Include: 20+ FREE CPE credits annually. Saving of up to $225 on conferences, $125 on seminars and more. Disclosures magazine delivered quarterly. A network of 13,300 other Virginia accounting professionals. Exclusive savings on insurance products, business services and technology. And so much more!

Please renew by May 31 at vscpa.com/Renew.

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SPRING 2021

VSCPA ETHIC EXCITING CHANGES TO THE VSCPA ETHICS COURSES These courses are written by expert state, national and international authors, and they meet the two-hour Virginia Board of Accountancy (VBOA) ethics CPE requirement. And good news … pricing for all ethics courses purchased as an individual remains $59, with special group pricing available as well. More courses will be added throughout the year. Visit CPAEthics.com to register and learn more. For more information on in-house offerings, contact VSCPA Employer Outreach Specialist Janie Medley at jmedley@vscpa.com.

In-house

In-person

Webcast

On-demand

Ethical Considerations in Diversity, Equity & Inclusion (DEI): Foundations for Our Profession Discover how to build a foundation of DEI in your workplace, the profession and the community around you. Designed for: All licensed CPAs Virginia’s Regulatory Landscape for CPAs: What You Need to Know This course will help you navigate the many different rules and expectations any CPA should consider when making decisions on a daily basis. Designed for: Newly licensed CPAs (1–2 years); Licensed CPAs needing a refresher on the laws, regulations and policies that govern the profession Tax Ethics: Navigating Client Needs & The Law CPAs and tax professionals are subject to a variety of rules from different sources. This course breaks down consequences if you are not in compliance. Designed for: CPAs, accountants and finance professionals with a focus in tax Corporate Finance Ethics: How to Ensure Zombie Ethics Won’t Kill Your Business This fun and distinctive course presents myths about accounting that hinder your ability to serve your clients and enjoy a thriving business. Designed for: CPAs, CFOs, controllers, internal auditors, board members, business owners, attorneys, entrepreneurs, compliance professionals, HR managers and meeting planners Corporate Finance Ethics: What a Virginia CPA in Business or Government Needs to Know About Professional Ethics Explore real-world case studies that highlight ethical issues encountered by Virginia CPAs in business and government. Designed for: CPAs, accountants and finance professionals working in corporate finance Government Ethics: Theory & Application Review the key concepts of ethics applicable to auditors in a governmental environment. In addition to fulfilling your ethics requirement, this course qualifies for up to 2.5 hours of Yellow Book credit. Designed for: Practitioners who perform Yellow Book engagements for nonprofits and governmental entities 16

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SPRING 2021

CS COURSES MEET THE AUTHORS BRIAN FRIEDRICH, CPA, LL.M. Brian is a Canada-based board member of the International Ethics Standards Board for Accountants (IESBA), an independent standard-setting board that develops and issues high-quality ethical standards and pronouncements for more than 2.5 million professional accountants worldwide.

LATOYA JORDAN, CPA, CGFM LayToya is a government financial management professional, currently serving as an audit director on the Reporting and Standards Team at the Auditor of Public Accounts (APA).

VIVIAN J. PAIGE, CPA Vivian is a well-known college educator, currently teaching accounting at Christopher Newport University (CNU). She is a member of the VSCPA DEI Advisory Council and founded the Norfolk United Facing Race nonprofit that facilitated dialogue on race, reconciliation and responsibility.

ALBERT SPALDING JR., CPA, PH.D. Albert serves on the faculty of the Department of Accounting at the Wayne State University Mike Ilitch School of Business, where he teaches business law, tax, forensic and fiduciary accounting, as well as professional ethics, in the M.S. in Accounting and MBA programs.

MELISA GALASSO, CPA, CGMA Melisa is the founder and CEO of Galasso Learning Solutions LLC and has over 15 years of experience in the accounting profession. She designs and facilitates courses in advanced technical accounting and auditing topics.

CLARE LEVISON, CPA, CGMA Clare is the owner of Inspired Responsibility, a consulting company dedicated to delivering continuing education via positive messages and meaningful content that inspire change. She has been an author and presenter of VBOA-approved ethics courses for over a decade.

STEPHANIE SAUNDERS, CPA Stephanie is a member of the AICPA Professional Ethics Executive Committee, a secretary and board member for NASBA, chair of the NASBA Uniform Accountancy Act Committee, and serves on many committee taskforces for the AICPA and NASBA. She served as a discussion leader for previous VSCPA ethics courses.

BRUCE WEINSTEIN, PH.D. Bruce is a professional ethicist whose interactive talks show how all of us can make better decisions using four simple steps. He is the author or editor of four books and the author of over 20 articles on ethics.

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TECHNOLOGY

TRAILBLAZING tech:

WHAT YOU NEED TO KNOW Leverage five emerging technologies to enhance your business model and create a winning experience.

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TECHNOLOGY

There is no denying technology adoption

Samantha Mansfield

grew exponentially in 2020. In fact, it changed our behaviors. Those who never thought they would buy groceries online now ask why they didn’t start earlier; it saves time, money, and is fairly easy to use. As we implement emerging technology, we need to focus on the experience it creates and what transformation could take place by implementing it. If our processes and business models have not evolved as a result of leveraging new tools, we run a significant risk of being disrupted and losing. Daniel Burrus, a leading futurist, recently shared in his e-newsletter a fantastic example of how Blockbuster adopted technology but did not transform. We all know Blockbuster’s story. When Blockbuster started, it rented VHS tapes, and when DVD and Blu-ray came out, it switched inventory to the new technology — but its business model stayed the same. Marc Randolph, the co-founder of Netflix, had the idea for Netflix while we were watching VHS; they could not fit in an envelope or a mail slot, so when DVD emerged, Netflix began. Not only did Netflix change our movie rental process, it leveraged the advancement in Internet bandwidth to transform our whole home entertainment experience. Today, we turn on the TV and stream whatever we want to watch, whenever we want. Netflix was a major disruptor, and now has many imitators. Take a moment to reflect on some of the technology you adopted over the last year. Now, critically look at how you have changed your staff and client experience through the use of that technology. Have you simply inserted it into legacy processes and models? Or have you taken the opportunity to create a new, higher value service? Are you thinking like Blockbuster or Netflix? Regarding the five emerging technologies detailed below, think of the implications of these tools and consider how they could improve your business model and client experience. Thinking through the effects technology will have is a lot easier said than done. Blocking time on our calendars to think will easily be forfeited for other action, but if we plan to do an exercise that guides us through a process, we are more likely to accomplish the task. Pascal Finette, co-founder at be radical and Singularity University’s Chair of Entrepreneurship and

Open Innovation, has been teaching professionals how to use a disruption map to productively think through areas affected by emerging technology, prioritize a starting point, and develop action steps. You can access this tool and a 10-minute instructional video through the CPA.com site at cpa.com/videos/navigating-future. There are five emerging technology areas to be aware of and begin developing your strategies on how they will impact your organizations and clients.

5G With each iteration of cellular bandwidth, more capabilities emerge. 3G created an infrastructure in which we could download large data files on mobile devices; we could email from anywhere! 4G opened up bandwidth to the extent entirely new industries emerged, like ride-sharing companies Uber and Lyft. 5G will exponentially increase the bandwidth available to us and promises to reduce latency issues. The Internet of Things (IoT) is one of the technologies that will greatly benefit from the rollout of 5G. According to Gartner, in 2019 the top industries using IoT were utilities, government, building automation, physical security, and manufacturing and natural resources. Health care continued to advance its use of IoT sensors as well to combat COVID-19. The combination of 5G and IoT offers organizations, and people, nearly instantaneous access to data. Imagine a person with diabetes has a wearable device that can monitor their blood sugar. With nearly zero latency, the IoT sensor can signal the need for help and save more lives. Smart cities can have IoT sensors on traffic lights and adjust the timing based on congestion or emergency vehicles approaching. As a society, we have grown to expect real-time access. 5G is the infrastructure that will allow us to continue to deliver on that experience. By having real-time data on resource usage and equipment performance, we can have less waste and maneuver assets to where they are needed most.

EDGE COMPUTING Cloud computing was likely the most widely adopted technology in 2020. Though many have been using it for decades, when the rush to remote work occurred there were immediate needs to migrate even more processes and systems to the cloud. When working u

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TECHNOLOGY

in the cloud, latency issues are frustrating and can be costly for organizations. Depending on bandwidth, sending packets of data to and from cloud servers can cause delays. Edge computing brings the processing closer to the device being used. The processing power is being decentralized from the main data center and enabling more processing to take place on hardware closer to where the user is working. It is a component of the technology trend called “distributed cloud.” This does not indicate cloud computing is fading away. Edge computing provides the option for data to be transferred and retrieved from the main data center during a less congested time and offers the end user a more real-time experience. For example, when we ask our virtual assistant a question, that question is sent to the main data center for processing, which then sends the response back to the device. When we ask Alexa to tell us a joke, we may feel additional speed is not necessary — but when we are in an autonomous vehicle, we rely on immediate processing of data gathered through the sensors to direct the vehicle with an appropriate response. Reduced latency offers greater productivity, trust in the tools, and a better overall experience.

BLOCKCHAIN In 2020, 1040 tax forms were updated to report cryptocurrency. An estimated 8–14% of Americans owned cryptocurrency, new use cases emerged,

Source: CPA.com and Wallstreet Blockchain Alliance

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and Wyoming was granted the first cryptocurrency bank charter. “This [first crypto bank] represents the development of an efficient, transparent, responsible nexus between the world of traditional finance and the developing crypto ecosystem,“ said Marco Santori, chief legal officer at Kraken, an Americanbased cryptocurrency exchange, in an interview with Forbes magazine. This signals a growing acceptance and maturing of blockchain and the need for auditing standards and services to be developed. Several industries are establishing use cases for blockchain that are beyond cryptocurrency. Supply chain issues were especially a challenge for many industries during the pandemic. Blockchain offers real advantages to the overall process. Consider the food recall issues we encountered. Given blockchain tracks the original source, future contamination recalls can identify exactly which processing plant the product came from all the way to the specific stores that received those products. No longer do we have tremendous waste of food by requiring everyone to throw out their products purchased within a specified date range. Food production is not the only industry that is implementing this kind of power as part of its supply chain. Below is a chart from CPA.com and the American Institute of CPAs (AICPA) 2020 Blockchain Symposium breaking down some of the data on supply chain uses.

TECHNOLOGY

Blockchain, IoT and artificial intelligence are being combined to offer even more powerful systems of tracking. By placing IoT sensors in the transportation process, better predictions on delivery dates can be determined, and monitoring appropriate temperatures in containers can eliminate spoilage. These tools are providing companies means to save money, be more productive, and deliver on their commitments to customers.

ARTIFICIAL INTELLIGENCE (AI) AI has been on “emerging technology” lists for years because the use cases keep expanding. We see on the 2020 Gartner Emerging Technology Hype Cycle many AI-based technologies, and several of which are predicted to hit the plateau of productivity within the next two to five years.

These predictions were made pre-pandemic. McKinsey and Company and other research institutes observed technology adoption was accelerated by five years in just two months due the global pandemic, so we may see these tools be mainstreamed faster than initially expected. Data analytics, autonomous vehicles, fraud detection … are all getting a helping hand from AI. As users of the systems, we want to approach AI databases like teaching a child. The quality of the inputs will affect the maturity and reliability of the system. This means organizations are wise to establish long-term plans for training staff on how to create unbiased, wellinformed AI databases, so they augment the skills and knowledge of the team. u

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We are using AI daily. Every time we speak to our virtual assistants we are engaging with forms of artificial intelligence. The question we must ask ourselves is: How do we harness this maturing technology to empower our teams and provide a higher-value product to our clients? We must be intentional and set clear objectives in our implementation. As an example, consider where bots fit in your organizations, and train bots well so the interaction is seamless and not maddening. Look into data analytic systems leveraging AI to identify anomalies in the complete dataset as opposed to testing samples. The uses in accounting and finance are endless. It is a matter of prioritizing where your industry, team and clients would benefit most from an AI teammate.

HYPERAUTOMATION Throughout 2020, organizations were implementing technologies to solve individual problems. In the fall of 2020, Gartner released its “Top Strategic Technology Trends for 2021,” which states: “Many organizations are supported by a ‘patchwork’ of technologies that are not lean, optimized, connected, clean or explicit. At the same time, the acceleration of digital business requires efficiency, speed and democratization. Organizations that don’t focus on efficiency, efficacy and business agility will be left behind.” This explains why they named hyperautomation as a top 10 technology trend for the second year in a row. Hyperautomation is the automation of repetitive processes performed by humans through the culmination of technologies, like AI and robotic process automation (RPA). RPA alone is highly effective in automating structured, rules-based processes, i.e. accounts payable processing. With

the insertion of AI, we can begin to automate more unstructured systems as well. The accounting profession has a shortage of qualified professionals. By leveraging tools that can automate repetitive processes we can free up capacity of the staff we have and engage them in work that employs their specialized knowledge and skills. Deloitte found in its 5th Annual Global Robotics Survey (2019): “On average [organizations using intelligent automation] expect a 26% increase in back-office capacity over the next three years and a 17% increase in capacity in their core business operations.” Given the increased capacity this creates, the Deloitte report suggested work be redefined: • By driving results and solving problems, not tasks performed. • By motivating and engaging with teams. • By automating work and augmenting the team to “increase productivity and enhance value to customers.” • By integrating learning and development into daily work.

WHERE TO BEGIN? We can learn by watching other industries and how they are implementing these new technologies. It won’t take long for them to cross boundaries and become disruptors in the accounting profession. Schedule time on your calendar to watch the disruption map instructional video, ideally with a few people from different departments, ages, industries, etc. to ideate with you. Take at least 30 minutes to map out the implications of one of the technologies; let the ideas flow. Then prioritize those that will have

Samantha Mansfield is presenting at the VSCPA Virtual Leaders’ Summit on May 13 on preparing for technology’s next normal. Visit vscpa.com/summit for more info! And check her out as our featured guest on the VSCPA Leading Forward podcast in April. Access all episodes and transcripts at vscpa.com/podcast.

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the biggest impact on your organization and create action steps for where to begin. We don’t have to design the whole concept before experimenting. Failure will happen, which is why we start small. Remember, we are not looking for technology that will let us operate the way we always have. We are looking to build on the opportunities they create. Brian Hopkins, VP and principal analyst at Forrester, said, “‘Firms that make big bets on new business models, new ways of working, and new talent will be more adaptive and resilient to the disruptive forces that will characterize the 2020s.” What is your vision of the future? n

Samantha Mansfield is a Michigan-based consultant, public speaker, and founder of Samantha Mansfield LLC. She has been in the tax and accounting technology field for over 20 years and consulted with firms on implementation and gaining efficiency. Samantha has been recognized as a “Top 40 Under 40” by CPA Practice Advisor, “Most Influential Women in Accounting” by AICPA and CPA Practice Advisor, and Accounting Today’s “Top 100 Most Influential in Accounting” multiple times. samnmansfield@gmail.com linkedin.com/in/samanthamansfield1 @SnMansfield

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CAREERS

Embarking ON AN FP&A CAREER The CPA of the future embodies the skills needed for financial planning and analysis (FP&A).

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CAREERS

When I left public accounting for a role that

included FP&A, many at my firm were unsure what that acronym meant. FP&A — financial planning and analysis — is a relatively new title, but it has begun working its way down from only the largest, most robust finance organizations to more moderately sized companies.

John Reynolds, CPA

FP&A is a future-forward role that is picking up steam. Many small- or mid-sized businesses might have never had someone titled FP&A, but they should. FP&A is a team of financial professionals who plan and partner with business leaders to steer their organization’s future. Below are the main roles for FP&A professionals.

BUDGETING The FP&A team is primarily associated with budgeting and maintaining those budgets. It builds, monitors, maintains and updates as needed every aspect of the budgeting process. More frequent budgeting is no longer simply “nice to have”; it’s a requirement. The days of organizations budgeting once a year and simply throwing in the budget to actual as part of monthly reporting are in the rear-view mirror. Today’s FP&A team is more deeply embedded with the business’s needs than ever before and will constantly seek approvals and modifications to budget or plan as needed throughout the business cycle. When the pandemic hit, one of the first things our team did was reevaluate the budget given our understanding of potential disruptions to business. This wasn’t a static-point estimate, but a range of potential outcomes and what effects they might have on business operations and ultimately the financials. The modern FP&A team will not just monitor variances from budget but update expectations once they are known or knowable. How do you navigate a boat in a storm if you have no map, compass or, in modern times, GPS? What if the metaphorical GPS says recalculating until next year’s budget? How can your business respond?

BUSINESS PARTNERING Another major part of a modern FP&A team includes heavy business partnering — another area where the “CPA of the future” comes into full view. We aren’t just “bean counters” giving a post-hoc view of

performance. The business partners on an FP&A team are there from the beginning of any new project, product offering or process change. When I first took on an FP&A role, I went to every development team to truly embed myself in an understanding of what they do every day, and be first in line to know if something was going wrong. This is truly the windshield view of a finance team — the eyes and ears for the CFO. FP&A team members work to deeply know the business and help the business owners (those managing business decisions) make the right call from the beginning. They act as a sort of mini-CFO for sections of the organization, generating and providing valuable insights as an integrated partner of the organization. This could be through projected financials, supportive data, or simply the perspective of a finance-minded person within the operational team. It is for this reason that FP&A shouldn’t be buried in the back office. These team members need to be equally comfortable in a collaborative environment, communicating quickly and effectively as they analyze data through spreadsheets and modeling tools.

DECISION SUPPORT The role of FP&A cannot truly be captured without an understanding of its role in decision support. Any time there is a major call to make, the FP&A team gathers as much data as possible and creates models to help the CFO and entire management team or board have useful views to aid their decision. The team can help answer questions like: Should we push forward or kill this business line? Should we acquire this company? If our revenues fall by X, Y or Z% due to COVID, how can we respond effectively? These are all questions that may come up and FP&A can tackle them with the discreet preservation of trust CPAs are known for. Any truly major decision by management can and should be aided by the analysis of the FP&A team.

IS THIS FOR YOU? If all the roles and responsibilities I noted above sound fun to you, this may be your next great career path. I have certainly enjoyed the role and learned a ton along the way. u

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FP&A (financial planning and analysis): A team of financial professionals who plan and partner with business leaders to steer their organization’s future.

One of the fears I often hear for those interested in moving to an industry role is a fear of boredom or monotony. As someone who left public accounting and moved into FP&A, this could not be further from the truth. This gave me an opportunity to get deep in a topic. I began to deeply understand the business, its drivers of success, and the levers of optimization that management has at its disposal rather than blazing by it as fast as possible. That said, I hardly feel like I have slowed down. The general cadence of FP&A is tied to the financial reporting deadlines but is not exclusively married to them. You will be involved in the business all month long with new product initiatives, supporting business process improvements, and constant agile budget support. As a business partner you are needed all year — not just at month, quarter or annual close. Someone in this role needs to be a true financial analysis wizard. The core competency of the role is financial analysis, so data cleansing, mapping and modeling should be second nature. The good thing about these skills is that they can be taught pretty easily. Software is designed to be easy to use and even the most complex of tools can be learned with enough motivation. Often, this skill is a gatekeeper to an entry-level role, but if you need to build your skills in this area, put in some time learning the basics and you will go a long way.

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BE THE CPA OF THE FUTURE I have talked a lot about the future CPA and how that may be different from CPAs of yester-year. Here are a few of the differences I hear over and over: The CPA of the past was: • In a back office away from others. • Evaluating and categorizing historical data. • Using rules and regulation memorization as a cornerstone for success. • Allowing speed and accuracy to define performance. The CPA of the future: • Partners with the business to make critical decisions. • Focuses on the future first, driving forwardlooking projections, analyzing financial and non-financial metrics, and giving management the tools to pivot ahead of the storm.

CAREERS

• Uses tools and software to automate compliance work so time and effort can be focused on adding value through perspective rather than computations. • Are, at their core, communicators. This skill cannot be overlooked at any level. It is my firm belief that FP&A and the roles it fills are the future of the CPA profession in private practice. FP&A represents an opportunity to be future forward, a true business advisor and a strategic communicator. If you are a finance leader, consider adding FP&A staff to your team. If you are a training provider, continue to build out your offerings supporting these skills. And if you are a CPA looking to shift careers and continue growing into a true business partner, consider a role in FP&A. n

John Reynolds, CPA, is the controller for Tracepoint Group in Fredericksburg, which provides innovative solutions for cyber incident response mediation and recovery. He formerly served as U.S. lead FP&A analyst for Block.one. A 2019 recipient of the VSCPA Top 5 Under 35 award, he sits on the VSCPA Board of Directors. John lives in Blacksburg. John.Reynolds@tracepoint.com

SMALL BUSINESS MADE EASY Sage | Accounting makes managing your clients finances easy with reliable native-cloud capabilities like automation, remote access, and real-time reporting so you can see a consolidated view of your clients’ data with one click.

Visit sage.com/us/sbca-ae or call 1-866-565-2726

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CPA PIONEER

BUILDING A culture OF TRUST Martha Mavredes, CPA, made her mark on the Commonwealth by serving as the first female auditor of public accounts.

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CPA PIONEER

Martha Mavredes,

CPA, is a planner. When the COVID-19 pandemic sent her staff at the Virginia Auditor of Public Accounts (APA) home in March 2020, the team didn’t miss a beat — in no small part because of work she had done years prior.

Chip Knighton

Mavredes, who was appointed Virginia’s auditor of public accounts in 2013, officially retired at the end of 2020, ending a 37-year career at the agency. The pandemic gave her a final year some would say is unbefitting of the legacy of the first woman to hold the position she attained in Virginia. However, the values and practices she instilled at the APA were instrumental in helping the agency fulfill its mission through unprecedented challenges. Five years ago, Mavredes led a strategic planning process that resulted in the development of the APA’s core values. That “guidepost,” as APA Audit Director George Strudgeon, CPA, called it, made all the difference in continuing the agency’s work. “We didn’t have to come out with strict rules about how to be on camera or contact a client or anything else,” Strudgeon said. “Everybody just seemed to adapt those values to the virtual setting. Her setting that up five years ago was really great when the pandemic hit, because it allowed us to pivot with very little friction on how people interacted.” No one knew at the time that the period of mandatory telework would outlast Mavredes’ career. Her retirement party took place over Zoom, and her victory lap at the James Monroe Building turned into a few scattered trips to an empty office to collect her belongings. But her fingerprints remain all over the APA’s work and processes.

A LEGACY OF TRUST After graduating from the College of William & Mary in 1980, Mavredes began her career at Peat Marwick International before a desire for more work-life balance led her to the APA in 1984. She quickly rose up the ranks at the agency — even securing a promotion while out on maternity leave — and became deputy auditor of public accounts under thenauditor Walt Kucharski, CPA, in 2007. One of the influences she took from Kucharski was the way she developed her staff, allowing them to gain experience and exposure in the parts of the government they’d need to know to advance in their careers.

“He gave me opportunities to get to know some of the legislative staff, so I was able to see how part of that process worked,” Mavredes said. “Even as deputy, he would let me handle things on my own, and then as auditor, I felt comfortable dealing with those legislators and committees, because he had given me those opportunities and that visibility with them.” Mavredes kept that in mind when grooming the deputy who would become her successor, Staci Henshaw, CPA. “She always said, ‘I don’t want to be here forever because I want you to have the opportunity to advance,’” Henshaw said. “We had that conversation several times, and I think that says a lot about her leadership that she thought about my career as well.” That kind of forethought also extended to the rest of her staff. Both Strudgeon and Henshaw got their first taste of leadership by being in charge of Virginia’s Comprehensive Annual Financial Report audit. In Strudgeon’s case, she brought him onto the project a year in advance and didn’t hesitate to let him take on other high-pressure responsibilities. “One thing that Martha brought that stood out was the amount of trust that she had on her directors who were working with her,” Strudgeon said. “I can remember being up at the General Assembly. She was giving a presentation about one of my agencies, and they were having difficulties, and one of the members started asking questions about the agency. She had the trust and the faith and knew I was in the audience and would be able to answer the questions.” As much trust as Mavredes extended to her staff, the faith in her from those who depended on her professionally was absolute. When she stepped down, the people charged with picking her replacement didn’t even do a true interview with Henshaw, instead just asking her to provide information on her background. Mavredes’ recommendation was enough. “She was instrumental in making me who I am today,” Henshaw said. “She helped me find my niche in my career.”

A SWEET-SMELLING FAMILY ATMOSPHERE Mavredes grew up in Charlottesville and started out as a mathematics major at William & Mary u

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CPA PIONEER Martha with her oldest daughter, Stephanie, and granddaughters Grace and Sophia on a windy beach day.

before deciding to study the more practical side of the discipline — as she puts it, “I liked the numbers more than the theory of it.” She wound up in a twoaccountant marriage — her husband, Jim, worked at what was then Coopers & Lybrand — and decided to get away from the ‘Big Eight’ lifestyle when they wanted to start a family. (They had two daughters, Stephanie and Meghan, and in another cruel COVID twist, Mavredes now has two grandchildren in Oklahoma whom she can’t visit despite her newfound free time.) A former manager of hers at Peat Marwick, Leigh Joyce, invited her to interview at the APA for what wound up being her last employer switch. The responsibility of ensuring Virginia spends taxpayer money responsibly was a big driving factor for her — as she put it, “The legislators say how the money is spent, and we are the eyes for them in the different agencies to make sure things are being spent correctly” — as well as building (and retaining) the best staff she could on a public-sector budget. “I tried to make sure people understood that family was important,” Mavredes said. “If they had a kid who was sick or had a school play or whatever, taking time off to tend to those kind of things was acceptable and encouraged. If you’re feeling like your life is fulfilled and filled out, you’re going to be a better employee than if you feel like we’re just running you through the mill.” Ask a former employee how Mavredes was as a boss and you’ll get glowing tributes. Strudgeon says “You knew she always had your back,” while Henshaw emphasizes that “she’s someone who cares about you as a person as well.” And it wasn’t just emphasizing family and making genuine conversation at the office that instilled that faith. “Back when she was the deputy auditor, I walked into her office and noticed a smell,” Strudgeon said. “She said she had just bought a new air freshener, and I asked what brand it was. I said that the smell took me back to the smell when I first met my wife, which was the smell of her dorm room in college. “A week later, I walk into my office and there’s a fresh, new air freshener that I had talked to her about. She had remembered that story and what that scent meant to me, and the next time she was out shopping, she got it. You always think people are just

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CPA PIONEER Staci Henshaw, CPA, succeeds Martha at the Auditor of Public Accounts and is the second female to serve in the leadership role.

Martha enjoys attending U.Va. football games with her youngest daughter, Meghan.

being polite and listening to you, but the little things like that stood out.”

with expanding her cooking repertoire and getting more exercise.

A SERVANT’S HEART

She’s also still taking stock and contextualizing a career end she never could have predicted and the way the staff she built is carrying out her legacy at the APA. True to form, when asked to reflect on nearly four decades serving Virginia, it doesn’t take long for her to deflect credit to other people.

Mavredes’ career and life have been marked by her desire to give back, both to the community and the accounting profession. A former member of the VSCPA Board of Directors, she threw herself into the role of state auditor, serving on numerous committees and work groups for the National State Auditors Association, as well as the American Institute of CPAs Government Performance and Accountability Committee. Even in retirement, she’s still serving. She’s the chair of the finance committee at her church — she notes the strange feeling of currently being on the receiving end of an audit after spending so many years auditing state agencies. She’s got other plans for retirement beyond trips to Oklahoma — her reading has picked up since she retired, and she even was able to serve as a beta reader and provide feedback on an early draft for Carla Laureano, one of her favorite authors. She’s a diehard University of Virginia fan who hopes to be able to use her football season tickets after being shut out of the stadium last fall. She’s working on digitizing years of family photos and memories, along

“This last year at work was so challenging,” Mavredes said. “My former staff have worked really hard to pivot and look at new ways to do things in the current environment. We were able to successfully bring new auditors on board and get them working, even if they weren’t around people as much. It was a challenge that I think everybody was going to be able to rise to. “I was proud of how well my folks rose to the occasion.” n

Chip Knighton is a seasoned freelance writer and former communications manager for the VSCPA. He currently serves as senior marketing manager at the Virginia Economic Development Partnership. aknighton@gmail.com

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VSCPA

The VSCPA congratulates new 40-year members The VSCPA welcomes 79 new 40-year members this year — a record amount! This designation is bestowed upon members in their 41st year of consecutive membership. While 40-year members are normally celebrated at the in-person annual business meeting each year, we will be recognizing them during our virtual business meeting event on May 13. See page 33 for more information!

Edward Amorosso, CPA, Norfolk

Dallas Heilman II, CPA, Virginia Beach

Charles Pearson Jr., CPA, Mechanicsville

Richard Andrews Jr., CPA, Henrico

Joyce Hoffman, CPA, Manassas

Jerrold Perkins, CPA, CGMA, Fairfax

Carol Atchison, CPA, Charlottesville

Jack Honeycutt, CPA, Farmville

Cynthia Pettibone, CPA, Ann Arbor, Mich.

John Atkinson Jr., CPA, Midlothian

Henry Howerton, CPA, South Hill

James Prince III, CPA, Norfolk

John Beavers, CPA, Winchester

Karen Ioffredo, CPA, McLean

William Prout, CPA, CGMA, Glen Allen

Robert Bruce, CPA, CGMA, Winchester

Benjamin Johnson, CPA, Farmville

Robert Carmines, MST, CFP, CPA, Newport News

Carl Jones, CPA, Henrico

Leslie Robson, CPA, CVA, CFF, Mechanicsville

Ed Kearney, CPA, Alexandria

Terrance Rogstad, CPA, Gainesville

Betsy Chappell, CPA, Richmond

Steven Kazansky, CPA, Virginia Beach

Mark Seamon, CPA, Bristol

Joseph Cheely, Henrico

Duff Scudder, CPA, CGMA, Centreville

Clark Cole, CPA, Roanoke

Andrea Kilmer, CPA, CGMA, Virginia Beach

Brian Cory, CPA, Midlothian

Stephen Kinnier, CPA, Midlothian

Sidney Simmonds, CPA, Arlington

David Creasy, CPA, Richmond

Stephen Kimata, CPA, Charlottesville

Jerry Smith, CPA, CGMA, Wytheville

Charles Cureton, CPA, Alexandria

Robert Layser, CPA, CGMA, Alexandria

Edward Lee Curtis Jr., CPA, Vienna

Charles Lowder, CPA, CFP, Suffolk

Charles Snead Jr., CPA, CGMA, CITP, Danville

Richard Davenport, CPA, CGMA, North Chesterfield

John Lowenhaupt, CPA, Williamsburg

David Snyder, CPA, Roanoke

David Lucas, CPA, Salem

Penny Stant, CPA, Virginia Beach

Jon Deane, CPA, Jupiter, Fla.

Frederick Malvin, CPA, Williamsburg

C. Jeffrey Stump, CPA, Christiansburg

Linda Devine, CPA, Richmond

J.D. Mears, Henrico

Debra Terry, CPA, Wytheville

Kendric Dobson Jr., CPA, Reedville

Thomas McQuade, CPA, Roanoke

Robert Wade, CPA, Alexandria

Harry Dyche III, CPA, CGMA, Chesapeake

Jeffrey Mitchell, CPA, Leesburg

Scott Warren, Richmond

George Morris, CPA, CGMA, Winchester

Victor Wilfore, CPA, CGMA, Chesapeake

David Mosso, MBA, Williamsburg

John Withers, CPA, Staunton

Lawrence Myers, CPA, Poquoson

John Wiita, CPA, CGMA, Stanley

Melody Nichols, Charlottesville

Lauren Wolcott, CPA, Norfolk

William Northern, CPA, Roanoke

Gwendolyn Young, CPA, CFE, Williamsburg

John Early Jr., CPA, CGMA, Roanoke David Ellwanger Sr., CPA, CGMA, Henrico Larry French, CPA, Bridgewater Jack Gibson, CPA, Chesapeake William Grubb Jr., CPA, CAE, Clarksburg, Md.

Susan Nottingham, CPA, Accomac

Kimball Hargis, CPA, Chesapeake

Grace Overstreet, CPA, MCSE, Vinton

Debra Harrison, CPA, Orkney Springs

William Peak, CPA, Franklin

DISCLOSURES

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SPRING 2021

O.D. Shrader Jr., CPA, Harrisonburg

Elsie Ziegenfus, CPA, Harrisonburg

VSCPA

CONGRATULATIONS, 2021 AWARD WINNERS OUTSTANDING MEMBER

TOP 5 MEMBERS UNDER 35

Alan Witt, CPA, CGMA, PBMares

Victor Geagla, CPA, Baker Tilly Iris Laws, CPA, DHG Brad Lester, CPA, Brown Edwards Amanda DiStasio, CPA, Optimal Accounting Evan Wrinkle, CPA, WellsColeman

RUTH COLES HARRIS ADVANCING DIVERSITY & INCLUSION Sponsored by Tyrone Dickerson, CPA, sole proprietor

VSCPA Annual Meeting and 2021–2022 Board of Directors The VSCPA’s Annual Meeting will be held virtually on Thursday, May 13. During the meeting, the Nominations Committee will present the following nominated members for election as 2021–2022 officers and directors:

CHAIR Anne Hagen, CPA, CGMA, MBA, Masonic Home of Virginia, Henrico

CHAIR-ELECT George Forsythe, CPA, CGMA, WellsColeman, Richmond

VICE CHAIRS Nammy Lee, CPA, Ph.D., University of Virginia, Falls Church Jennifer Lehman, CPA, CGMA, Hantzmon Wiebel LLP, Charlottesville Aaron Peters, CPA, Peters & Associates, PC, Falls Church Christine Williamson, CPA, CohnReznick LLP, Tysons

AT-LARGE DIRECTORS Courtney Arrington, CPA, Genworth, Richmond Michael Brunson, Sr., CPA, Virginia Credit Union, Inc., Richmond

Daniel Hudgens, CPA, Deloitte & Touche, LLP, Richmond LaToya Jordan, CPA, Auditor of Public Accounts, Richmond Andrew Martin, CPA, Corbin & Company, PC, Chesapeake Thomas Milburn, CPA, Yount, Hyde & Barbour, PC, Winchester John Reynolds, CPA, Tracepoint, Fredericksburg Neena Shukla, CPA, CFA, CGMA, PBMares, LLP, Fairfax Gregory Wallig, CISA, CISM, Grant Thornton LLP, Arlington John Waters, CPA, Wall, Einhorn & Chernitzer, PC, Norfolk

DISCLOSURES

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SPRING 2021

VSCPA

Congrats to the following members NEW HIRES Clay Lyons, CPA, is the new controller at Progressive Design in Midlothian. Joseph Cheely is the new CFO at LeClairRyan in Richmond. Blaine Hegner, CPA, has joined CST Group in Reston as partner. Amy Schulz, CPA, was hired as a senior manager Sherman, Spero, Safarino & Co., CPAs, PC, in Virginia Beach.

PROMOTIONS Matthew Comstock, CPA, CGMA, and Tristan McNair, CPA, were promoted to partner at Sherman, Spero, Safarino & Co., CPAs, PC in Virginia Beach. Angela Hill, CPA, CGMA, from Christiansburg, has been promoted to assistant county administrator for Montgomery County. Harvey Johnson, CPA, was named CEO of PBMares LLP in Newport News. Stephanie Mercer, CPA, is now partner at Updegrove, McDaniel, McMullen & Chiccehitto, PLC, in Leesburg. Jonathan Motely, CPA, is now executive vice president of TowneBank Mortgage in Suffolk.

APPOINTMENTS & AWARDS Melisa Galasso, CPA, CGMA, CEO of Galasso Learning Solutions in Charlotte, N.C., has been nominated as an atlarge member to the American Institute of CPAs Council. Staci Henshaw, CPA, has been appointed to a four-year term as the Virginia Auditor of Public Accounts in Richmond. Pictured left to right: Amy Schulz, CPA, Matthew Comstock, CPA, CGMA, Tristan McNair, CPA, Harvey Johnson, CPA, Melisa Galasso, CPA, CGMA, Staci Henshaw, CPA, Jim Holland, CPA, Nadia Rogers, CPA, Walter Stosch, CPA, Hillary West, CPA, Alan Witt, CPA.

DISCLOSURES

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SPRING 2021

Jim Holland, CPA, an educator at Virginia Commonwealth University, is the 2021 chair of the Chesterfield County Board of Supervisors. Kevin Mele, CPA, a sole proprietor in Moneta, has been appointed to the board of the Bedford Regional Water Authority.

VSCPA

Nadia Rogers, CPA, associate professor at Virginia Tech in Blacksburg, received the Virginia Tech Pamplin College of Business’s 2020 Certificate of Teaching Excellence. Walter Stosch, CPA, a VSCPA Life member retired from Stosch, Dacey & George, PC, in Richmond, will be inducted into the Junior Achievement Greater Richmond Business Hall of Fame.

FIRM NEWS Citrin Cooperman has acquired Homes, Lowry, Horn & Johnson in Fairfax. The following firms headquartered in Virginia and suburban Maryland were named to Forbes magazine’s list of America’s best tax and accounting firms:

• GRF CPAs & Advisors, Bethesda, Md. • Hantzmon Wiebel, Charlottesville • Homes, Lowry, Horn & Johnson, Fairfax • Johnson Lambert, Vienna

• Brown Edwards, Roanoke • PBMares, Newport News

Hillary West, CPA, partner at CST Group in Reston, was named treasurer on the board of Food for Others.

• Calibre CPA Group, Bethesda, Md.

Alan Witt, CPA, CEO emeritus of PBMares LLP in Newport News, was elected chair of the Virginia Chamber of Commerce’s Board of Directors.

• CST Group, Reston

• Thompson, Greenspon, Fairfax • Cherry Bekaert, Richmond

• Dembo Jones, North Bethesda, Md. • E. Cohen, Rockville, Md.

• Wall, Einhorn & Chernitzer, Norfolk • Yount, Hyde & Barbour, Winchester

DISCLOSURES

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SPRING 2021

VSCPA

Staff news ANNIVERSARIES April 1: Emily Walker, vice president, advocacy,18 years May 15: Maureen Dingus, chief operating officer, 14 years June 5: Janie Medley, employer outreach specialist, 15 years June 6: Doris Pennington, member services assistant, 7 years June 19: Diane Jones, senior manager, finance & administration, 15 years Janie Medley 15 years

Diane Jones 15 years

Brag, please!

Send your member news to disclosures@ vscpa.com.

NEW HIRES Zeke Leeper and Chandra Painter have joined the VSCPA as learning specialists. Welcome, Zeke and Chandra!

DEPARTURES Public Relations Director Tim Barry and Online Learning Specialist Kathy Suddarth have left the Society. We wish them luck!

THE VSCPA MOURNS THE LOSS OF Franklin Dennis, CPA, a Life member and sole proprietor from Norfolk who served in the U.S. Army in Vietnam. Marty Einhorn, CPA, from Norfolk. He was a founding shareholder in Wall, Einhorn & Chernitzer, PC, and served on the VSCPA Educational Foundation Board of Directors. He supported many other organizations, such as ForKids, the Simon Family Jewish Community Center, Arts for Learning Virginia and others. In 2018, he paid for R&B band Tower of Power to perform a concert and raised $33,000 for the Leukemia & Lymphoma Society. He received Virginia Business Super CPA award multiple years, as well as many other leadership awards. Estelle Fenner, CPA, from Chesterfield. She most recently worked for the Virginia Employment Commission. Thomas Vadnais, CPA, from Fairfax. He was a shareholder in McKinnon & Vadnais, Inc., in Alexandria.

DISCLOSURES

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SPRING 2021

VSCPA

CONGRATS TO THE VSCPA’S NEWEST VIRGINIA CPA LICENSEES Danielle Agosta, CPA, Arlington

Dongqiong Guan, CPA, Glen Allen

Miroslav Pejcic, CPA, Sterling

Raghav Ahuja, CPA, Arlington

Hoa Ha, CPA, Falls Church

Benjamin Phifer, CPA, Mechanicsville

Shengyang Ai, CPA, Tysons

Adam Heishman, CPA, Winchester

Caitlin Phillips, CPA, Charlottesville

Stephen Anderson, CPA, Clifton

John Himpler, CPA, McLean

Leo Prawi, CPA, Arlington

Faye Antezana, CPA, Suffolk

Connor Hoback, CPA, Glen Allen

Mei Ling Reynolds, CPA, Alexandria

Anish Bachu, CPA, Burtonsville

Kevin Jamerson, CPA, Virginia Beach

Jonathan Ryan, CPA, Broadlands

Gerimy Bailey, CPA, Virginia Beach

Ryan Johnston, CPA, Arlington

Eric San Emeterio Bohdanc, CPA, Tysons

Daniel Brooker, CPA, Lynchburg

Moutaz Karara, CPA, Arlington

Christopher Santos, CPA, Arlington

Vanessa Cannavino, CPA, Newport News

Emily Kelly, CPA, Woodbridge

Brian Schobel, CPA, Spotsylvania

Ethan Carter, CPA, Richmond

Ryan Kirtner, CPA, Powhatan

Colleen Smith, CPA, Lynchburg

Spencer Clarke, CPA, Roanoke

Amy Koran, CPA, Charlottesville

Nicholas Sojka, CPA, Arlington

Victoria Coleman, CPA, Tysons

Rebecca Kovac, CPA, Midlothian

Sarah Sotelo, CPA, Vienna

Caroline Cook, CPA, Washington, D.C.

Joshua Koven, CPA, McLean

Danielle Spickard, CPA, Arlington

Mikaela Cook, CPA, Nashville, Tenn.

Nicole La Vertue, CPA, Suffolk

William Spivack, CPA, Bethesda, Md.

Michael Coss, CPA, Richmond

Heather Lane, CPA, Powhatan

Nicklaus Stegmuller, CPA, Virginia Beach

Joshua Covington, CPA, Doswell

Emily Lawrence, CPA, Suffolk

Emily Stickman, CPA, Winchester

Lauren Crockett, CPA, Chesapeake

Samantha Jieng Lee, CPA, Rockville, Md.

Hariharan Subrahmanyan, CPA, Chantilly

Sean Cronin, CPA, Centreville

Xiaomeng Lee, CPA, Centreville

Jesse Swartz, CPA, Irvington

Patrick Cunneen, CPA, Arlington

Benjamin LePere, CPA, Richmond

Maryam Tahseen, CPA, Richmond

Ryan David, CPA, Henrico

Kathleen Loverde, CPA, Henrico

Rachel Tan, CPA, Raleigh

Alena Dubavaya, CPA, Highland Springs

Ashlee Lynch, CPA, Arlington

Joanna Taylor, CPA, Richmond

Matthew Duffin, CPA, North Chesterfield

Caitlyn Manalo, CPA, Silver Spring, Md.

Larissa Teelucksingh, CPA, Arlington

David Eismeier, CPA, Washington, D.C.

Teresa Marangon, CPA, Toano

Amanda Thumm, CPA, Alexandria

Michael Ellis, CPA, Tysons

Colin McFadden, CPA, Mechanicsville

Meredith Toney, CPA, Falls Church

Jill Fawley, CPA, McLean

Elizabeth McGrady, CPA, Richmond

Evan Turner, CPA, Arlington

Rebecca Feild, CPA, Charlottesville

Nathaniel Miranda, CPA, Richmond

Christina Valenzuela, CPA, Tysons

Shirbriya Fletcher, CPA, Vienna

Matthew Mitchell, CPA, Suffolk

Frank Vintz, CPA, Arlington

Barbara Fontaine, CPA, Arlington

Stephanie Mivsek, CPA, Falls Church

Christina Visintainer, CPA, Washington

Conner Freedman, CPA, Richmond

Erin Montgomery, CPA, Tysons

Rohit Wadhwa, CPA, Ashburn

Mitchell Fritz, CPA, Washington

Kurtis Moran, CPA, Gaithersburg, Md.

Hannah Wallace, CPA, Falls Church

Benjamin Gardner, CPA, Fairfax

Janelle Moss, CPA, Virginia Beach

Eric Wetzel, CPA, Richmond

Brian George, CPA, Winchester

Yu Nie, CPA, Tysons

Joshua White, CPA, Chesapeake

Joshua Goldstein, CPA, Arlington

Benjamin Noel, CPA, Covington

Philip Whittle, CPA, McLean

Danielle Gollehon, CPA, Fairfax

Eric Norberg, CPA, Leesburg

Jennifer Williams, CPA, Chesapeake

Adam Gostomski, CPA, Richmond

Jessica Park, CPA, Fairfax

Xinyu Zheng, CPA

Cindy Gu, CPA, Tysons

Kanaiyalal Patel, CPA, Hanover Park, Ill.

List from Oct. 1, 2020, through Jan. 31, 2021.

DISCLOSURES

•

SPRING 2021

CLASSIFIEDS

TRANSFORMING YOUR PRACTICE? Do it with intention based on tried and true methods. Join Poe Group Advisors’ online community workshop. Learn more at www.accountingpracticeacademy.com.

ACCOUNTING PRACTICE SALES IS THE largest marketer of CPA firms in the US. The reason? Proven success! Contact us for a confidential, no-obligation discussion or to receive a FREE valuation. Call 888-847-1040 or email Wade@APS.net.

HELPING ACCOUNTANTS WRITE THEIR NEXT CHAPTER. Let us help you find your next opportunity. Bank financing is available! Visit our website www.poegroupadvisors.com for resources and current listings. Email cpoe@poegroupadvisors.com or call today 888-246-0974.

Featured Practices Available for Sale: Richmond Area CPA Practice grossing $1,050,000; Washington DC Metro Accounting and Tax Practice Grossing $470,000; Southwest VA CPA Practice grossing $285,000! Buyers — for more information on available listings, please email Holmes@APS.net or visit www.APS.net.

Join the VSCPA 100% Member Program

Show your company’s commitment to your employee’s success and the accounting profession by joining the VSCPA 100% Member Program. The 100% Member Program includes benefits for your organization like: • Concierge-style service. • A single renewal invoice. • Recognition in VSCPA publications. Learn more and sign up today at vscpa.com/100% or contact Julia Henderson at jhenderson@vscpa.com.

DISCLOSURES

•

SPRING 2021

HELPING ACCOUNTANTS WRITE THEIR NEXT CHAPTER. Selling your practice? Get Powerful, yet Practical insights to help you plan a successful exit. Checkout our video by visiting www.poegroupadvisors.com/sellvideo.

YOUR AD COULD BE

here!

Classified ads are a great way to reach VSCPA members — 94 percent rate the information in Disclosures as excellent or good. What are you waiting for? Contact us at classifieds@vscpa. com or visit vscpa.com/ Classifieds for rate information. Members receive a discount.

Experiencing

March Madness?

Sell Your Practice, and Make This Your FINAL SEASON!

Delivering Results - One Practice At a time Wade Holmes 888-847-1040 x2 Wade@APS.net

www.APS.net DISCLOSURES

•

SPRING 2021

Virginia Society of CPAs 4309 Cox Road Glen Allen, VA 23060

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