APRIL 2014
The Official Publication of the Hawaii Society of Certified Public Accountants
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April 2014 The Official Publication of the Hawaii Society of Certified Public Accountants
Ex-Officio
Officers
President President-Elect Vice President Secretary/Treasurer
Michael I. Tanaka Patrick Oki Gordon M. Tom Warren Y.F. Wee
Directors • 2012 – 2014
Gordon D. Ciano James P. Hasselman Robert S. Kawahara (MAUI) Edmund N. Nakano Norman N. Okimoto Samantha L. Shetzline (KAUAI)
Immediate Past President Craig M. Watanabe
President’s Message ................................ By Michael Tanaka
Darryl K. Nitta (Designated) Ross R. Murakami (Elected)
Executive Director Kathy M. Castillo
Administrative Assistant Debbie Cortes
Hawaii Society of CPAs
900 Fort Street Mall, Suite 850 P.O. Box 1754 Honolulu, Hawaii 96806 Tel: (808) 537-9475 Fax: (808) 537-3520 E-mail: info@hscpa.org Website: www.hscpa.org
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AICPA Council
Directors • 2013 – 2015 Brenda F. Cutwright Ronald I. Heller Wendell K. Lee Trisha N. Nomura Valerie N. Shintaku Melanie S. Shishido Jessica Su
In This Issue
Technology Trends to Monitor in 2014..... By Thomas G. Stephens, Jr
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Collaboration - Buzzword or Reality?......... By Sue Thiemann Hawaii Accountancy Law Mandates Peer Review...........................
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Managers vs. Leaders............................ By Dr. Linda Talley
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Norman’s Book Review......................... CPA Firm Microcomputer Technology.. By Ron Gouveia
This publication is designed to provide general information only, and should not be used as a substitute for professional advice. The authors and editors disclaim any liability for any loss or damage resulting from the use of any information or advice herein. Although a reasonable attempt has been made to be accurate, neither the HSCPA nor the authors and editors can guarantee that all information contained herein is correct as of the date of publication. KALA (the Hawaiian word for money) is published monthly and is the official publication of the Hawai‘i Society of Certified Public Accountants. Please direct all inquiries regarding editorial content, subscriptions and circulation to HSCPA, 900 Fort Street Mall, Suite 850, Honolulu, Hawai‘i 96813.
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Y-CPA Buzz......................................,....
Book Orders....................................,....
2014 Annual Conference....................... April Kala 2014
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President 's Message By Michael Tanaka
Aloha, Members!
Congratulations to those who have already filed your 2013 income tax returns! You’re one of roughly 148 million that will be filing an individual income tax return this year. For those of you who prepare tax returns and have family members that need your assistance, I feel your pain! All kidding aside, there is much satisfaction in knowing that I can be somewhat useful in helping my dad, four siblings and several nephews with their tax reurns – all free of charge of course! Speaking of my dad, I recall having to help him around the house and yard during my youth and taking these long, slow drives over the Pali to the Kailua Landfill and then back home. He would have his transistor radio and the radio in his truck tuned to AM Talk Radio all day long. Boring! I wanted to hear tunes! But, like a good son, I bit my tongue, and endured the blather. Fast forward to today. Strangely, I find myself listening to Talk Radio on the weekends when doing chores or while driving. One program which I occasionally catch and that my dad introduced me to is Bob Brinker’s MoneyTalk. This show has been on since Super Bowl Sunday 1986 (28 years) and currently airs each Sunday, 10am to 1pm and replayed from 3pm to 6pm on AM 690. Bob fields questions from his national audience and discusses financial subjects during the first two hours, and has a guest speaker during the third hour. 4
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On a recent program, Bob’s guest was Eric Brynjolfsson, a professor at MIT and author of the New York Times bestseller, The Second Machine Age. His co-author is Andrew McAfee. Their book looks at how the digital age is changing the way we live and its impact on professions of all kinds. During the interview, Eric gave examples of who might benefit and who might be hurt by the second machine age. Not to be an alarmist for us tax folks, but he caught my attention when he commented that those people who do routine work with information in structured types of jobs such as tax preparers may be hurt. Could I really be replaced by a robot someday? He went on to mention that those who would benefit include entrepreneurial-types and those with great ideas.
recreational therapists (0.003), dentists (0.004) and athletic trainers (0.007). In The Second Machine Age, the authors recommend that people can remain valuable knowledge workers in the new machine age by working to improve the skills of 1) ideation (i.e., coming up with good new ideas or concepts), 2) large-frame pattern recognition, and 3) complex communication instead of just focusing on the three Rs (reading, writing and arithmetic). We as CPAs will likely need to continue to be consultative, add new value to the services we perform and continue to do more future-focused work. For students, the authors recommend that they take advantage of SOLEs (selforganizing learning environments), which have a track record of developing the above skills. They also speak favorably of the Khan Academy and MOOCs (massive open online courses) for students.
In order for many of us to continue to stay In a September 17, 2013, a paper by Carl relevant and to keep up with the ongoing changes in technology, consider attending Benedikt Frey and Michael Osborne, of this year’s HSCPA Technology Conference the University of Oxford, titled, The Future of Employment: How Susceptible are and other HSCPA courses to broaden your Jobs to Computerisation?, they examined expertise. Please also consider joining us at this year’s Annual Conference the probability of computerization for 702 occupations and estimated that 47% scheduled for Friday, June 20th, where we are very fortunate to have excellent of total U.S. employment is at risk of being automated within two decades includ- guest speakers including Barry Melaning accountancy, paralegal work, techni- con, AICPA President and CEO, who will cal writing and a lot of other white-collar provide us with an update on the accountoccupations. In their study, accountants ing profession. Registration information is available at the HSCPA website and look and auditors had a probability of 0.94 for the more information highlighting (1 = certain) that computerization will our guest speakers and honorees in KALA lead to job losses within the next two (on the HSCPA website). I’ll speak more decades. This was right up there with about this next month. telemarketers at a probability of 0.99. Those occupations deemed safe with a In the meantime, stay healthy and enjoy low probability of digitization included the last few weeks of busy season!
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Technology Trends to Monitor in 2014 Thomas G. Stephens, Jr., CPA.CITP With 2014 officially underway, our thoughts turn away from the Holiday season and back to helping our organizations run more smoothly, efficiently, professionally, and (hopefully!) profitably. To that end, we have identified six technology trends that may help you to achieve these objectives. While not all of the these technologies may be applicable to all organizations, the pervasiveness with which these tools, services, and devices are appearing, leave no doubt that these are the technology trends you should monitor and capitalize on as appropriate in 2014.
As you seek to update/upgrade/replace your current software, inquire to see if your software publisher offers a subscription model and, if so, carefully weigh the merits of changing how you license your software.
Software Licensing is Changing
Cloud Collaboration is Real
In the past, most individuals and organizations did not spend much time at all considering how they licensed software. Rather, as needs arose, they simply purchased licenses of boxed software, such as Microsoft Office. While these options still exist and may be viable in many cases, for an increasing number of individuals and organizations, licensing software through monthly subscription plans provides not only more functionality, but it reduces costs. For example, companies seeking to acquire “traditional” licenses of Microsoft Office Professional Plus 2013 will pay over $500 (MSRP) for each license of the software. However, you can acquire the same software in an Office 365 subscription model for as little as $12 per user, per month. Further, when acquired through the Office 365 subscription model, you can install the software on up to five computers that you use, as opposed to one computer in the traditional model. 6
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choose to store in the Cloud, yet still receive all of the benefits of being able to collaborate with other users on critical documents. Further, storing critical documents in secure Cloud-based services allows you to retrieve those documents from most, if not all, devices you use, including your desktop, laptop, tablet, and smartphone. The combination of these factors leads to increased organizational efficiency, productivity, and security and means that we cannot ignore the Cloud as a collaboration vehicle. Windows 8 is a Substantial Player for Businesses
As workforces grow increasingly mobile and as professionals continue to need to collaborate with others both internal and external to their organizations, using the Cloud as a collaboration tool is gaining favor rather rapidly. In the past, team members would accomplish this by subscribing to individual accounts with services such as Dropbox, Box, SugarSync, and Google Drive. Although each of these services provides exceptional levels of functionality, challenges exist with respect to the ownership and security of organizational data stored in Cloud services licensed by individuals. Accordingly, many organizations desiring to reap the benefits of Cloud-based collaboration are turning to corporate-level services such as, SharePoint, AccountantsWorld, SkyDrive Pro, and ShareFile to use the Cloud safely and securely as a mechanism for collaboration. By opting for corporate-level accounts, you can stay in control and ownership of the data that you and your team may
Though shunned by some upon its initial release, Windows 8 and Windows 8.1 are really beginning to shine for many individuals and businesses. Designed as a “dual-personality” operating system, Windows 8/8.1 allows users to work the way that they want, either in touchscreen mode or classic mouse and keyboard mode – or both at the same time! Beyond user interface changes, you will likely find Windows 8/8.1 to be faster and more secure than prior versions of Windows. Coupled with innovative features such as Windows To Go, Picture Passwords, and the ability to search your computer and the Internet simultaneously, Microsoft’s latest release of Windows is one that you should not ignore in business environments, particularly if you are considering how to replace existing Windows XP computers in your organization. Touchscreen Devices are not Fads Most accounting and financial professionals today carry a smartphone and/
or a tablet that includes a touchscreen; increasingly desktop and laptop computers offer touchscreens as options. If you use a touchscreen on your smartphone or tablet, why would you not want the same level of convenience to manipulate your desktop or laptop computer? Touchscreen devices – including desktop and laptop computers – are mainstream computing tools today and viewing them as fads may be robbing you and your team of substantial opportunities for increased productivity. For example, consider the restaurant industry. The next time you visit a restaurant, notice the prevalence of touchscreen-enabled point-of-sale terminals in these establishments. Even in these high-volume environments, touchscreen devices have proven their worth. Is it time that you consider touchscreens in your organization, particularly if Windows 8/8.1 is in your future? It’s a Virtual World, After All In today’s computing environment, we seek the best of all worlds – low cost, high-speed, secure, and easily administered computing. When we design our computing infrastructures such that we have multiple physical servers and desktops to maintain, we likely are not able to meet all of our desired objectives. However, if we begin to virtualize our infrastructures – in either the Cloud or onpremise – the opportunities for achieving our objectives increase, as does the ability to increase the return on our investment in technology. Virtualization simply means that the “real” computing is being done on a computer other than the one we use to input and
view data. Such a device could be a “thin client” connected to a virtual desktop in your office, or you could connect it to a virtual desktop hosted by a company such as IVDesk, Cloud9 Real Time, or Thomson Reuters. Likewise, we can choose to have our servers hosted by companies such as Rackspace, Amazon, or Dell. In a large percentage of cases, organizations find that not only do they save money when virtualizing some or their entire infrastructure, but the quality of their computing environment increases also. Tablets are Growing Up and Ready for Business iPad, Surface/Surface Pro 2, Nexus – these are just a few of the many tablet computers from which you can choose in today’s market. Tablets are rapidly catching up with their laptop cousins in terms of computing power. For example, you can now obtain a Surface Pro 2 from Microsoft with an Intel i5 processor, 8 GB of RAM, and a 512 GB hard drive running Windows 8.1 Pro – in either words, a full laptop computer in the form factor of a tablet computer weighing in at a paltry 2 pounds. As you consider your next computer, do not overlook the possibility that you might be able to obtain all of the computing power you need in a tablet device. This could be particularly true if you virtualize your desktop and all you need is a device that allows you to access it remotely over the Internet.
to be useful to all readers. However, you should keep a close eye on each of the items mentioned and carefully consider whether implementing one or more of these technologies this year will prove to be beneficial. We believe that you will find many of these technologies to help make 2014 a very good year. Tommy Stephens is a shareholder in K2 Enterprises, where he develops and presents continuing professional education programs to accounting, financial, and other business professionals across North America. You may contact him at tommy@k2e.com.
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Collaboration - Buzzword or Reality? By Sue Thiemann Leaders want to get people to think as one company. But managers or other leaders in different functions or different business units may seem surprisingly reluctant to work together. Jealousies, misunderstandings and enmity may seem more common than collaboration. Many people confuse collaboration with teamwork. You know the attitude of team against team philosophy (the ol’ tug-ofwar idea) when leadership really wants to encourage team with team thinking.
The Journey Ahead by Sandra Wiley, COO and Shareholder at Boomer Consulting, Inc. Sandra outlines the journey a fictitious firm takes in moving toward a collaborative firm environment. I do want to take this moment to state collaboration within a firm is not the sole focus of Sandra’s book. In fact she spends considerable time describing collaboration within the industry. Her description of this fictitious firm’s journey is engaging and inspiring. Gary Boomer states in the forward: “Finally there is a clear plan and path for truly changing your firm from a group of individuals sharing overhead to Collaboration can be within a firm or a team of collaborators creating somewithin an industry. In this article, I would thing larger than any individual.” like to address collaboration within a firm. What does collaboration really look “Creating something larger than any like? This is clearly outlined in the book individual” really resonated with me.
Collaboration is not an option in this economy; it’s an imperative. If you are in any doubt that collaborative leadership is an imperative, and not just a fad, take a look at any of these 22 articles in the Harvard Business Review series on collaboration. Anyone can be collaborative leader — no matter whether you are the president, a mid-level manager or a front-line supervisor or in a large corporation, a small business, a non-profit, or an accounting firm. Collaborative leaders create communities and build relationships. Reference chapter 4 in Sandra’s book for a description of steps this firm took to build relationships within their firm. Anyone in a firm can be a participant in a
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collaborative effort within the firm at any level or position from the administrative assistant to the partner or consultant. Why Collaborate? Collaboration is working together to create something new or better in support of a shared vision. The key point is that this is not an individual effort, something new or better is created, and that the glue is the shared vision. A perfect example of collaboration in our company was the SamePage Project. The mission was to take BCI’s core work and place it in a location and format that everyone can use, share and collaborate on. The collaboration happened among everyone in the company from the very backstage associate to the front stage consultant deliver-
ing the service to our clients. Everyone bought into the project and contributed multiple ideas and concepts, shared in the work to convert to complete the project. The end result is a very functional process for everyone in the company to access and work on any project with any client from location using the devise of their choice. If you are truly interested in a roadmap to collaboration in your firm, I encourage you to obtain Sandra’s book and start your journey ahead to collaboration within your firm. Sue Thiemann is the Executive Assistant for Boomer Consulting, Inc. Sue’s primary responsibilities include company financials as well as preparation for the annual Boomer Technology Circles Summit.
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Hawaii Accountancy Law Mandates Peer Review for Firm Licensure Are you performing attestation work (compilations, reviews, audits)? If so, this applies to you!
In 1995, the HSCPA was approved to administer the American Institute of CPAs (AICPA) Peer Review Program for AICPA member firms with their main offices in Hawaii.
pany accounting oversight board firm inspection standards for public company audit firms required under the SarbanesOxley Act of 2002, as amended, as its minimum standards for peer reviews.”
In 2012 the Hawaii Legislature passed mandatory peer review law stating that the Hawaii Board of Public Accountancy shall “adopt the Standards for Performing and Reporting on Peer Reviews and any applicable ethical requirements adopted by the American Institute of Certified Public Accountants and the public com-
With the requirements of the impending peer review law taking action soon, the HSCPA is working to establish the HSCPA Peer Review Program for non-members of the AICPA and will also adopt the AICPA Standards for Performing and Reporting on Peer Reviews as its minimum standards.
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Hawaii law states that: 1. Every firm, including the Hawaii offices and Hawaii engagements of foreign or multistate firms, that is required to obtain a firm permit to practice pursuant to section 466-7 shall undergo a peer review every three years. The firm’s Hawaii offices, if any, and Hawaii attest engagements shall be included in the scope of the peer review performed in accordance with the American Institute of Certified Public Accountants Standards for Performing and Reporting on Peer Reviews. 2. All firms subject to this part and performing Hawaii attest work as of December 31, 2014, shall enroll in the applicable program of an approved sponsoring organization by December 31, 2015, notify the board of enrollment in that program, and have a peer review performed by December 31, 2017.
3. Any firm that begins performing Hawaii attest work after December 31, 2014, shall: 3 Notify the board within thirty days of the beginning of the performance of attest work;
So listen up members . . . if your firm is engaged in an accounting and auditing practice, you must enroll in a practicemonitoring program by December 31, 2015 – and notify the Hawaii Board of Public Accountancy of that enrollment.
Then by December 31, 2017, your firm must have completed a peer review. For additional information, please go to the HSCPA website: www.hscpa.org/ professional-development/peer-review
3 Enroll in the applicable programs of an approved sponsoring organization within one year from its initial licensing date or the performance of Hawaii attest work that requires a peer review; 3 Provide the board with enrollment information within one year of the date the Hawaii attest work was first performed; 3 Have a peer review performed within eighteen months of the date the Hawaii attest work was first performed; 3 Adopt the peer review due date as signed by the sponsoring organization and notify the board of the peer review due date within thirty days of its assignment; and 3 Schedule and begin an additional review within three years of the previous review’s due date, or earlier if required by the sponsoring organization or the board; provided that the firm shall be responsible for anticipating its needs for peer review services in sufficient time to enable the reviewer to complete the review by the assigned review due date. 4. A firm that does not perform Hawaii attest work shall be exempt from the peer review process.
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Managers vs. Leaders By Dr. Linda Talley There are many high performance managers in organizations today and many times are promoted to senior level positions because they got things done; achieved desired results/goals; kept the ball rolling; reduced costs or achieved efficiencies. And, this is why we call them high performance managers. But what happens when they are at the C level? They may be great managers but are they good and effective leaders? Historically we have seen this happen in such organizations as Apple, Fiat, or IBM. These organizations were over managed and under led. The job of a manager is to
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get things done. The job of a leader is to move people from where they currently are to where they need to be.
while the leader focuses on stepping forward to focus on conceptual skills and relationship skills.
So there are differences between a manager and a leader. Numerous books have been written about these and I will focus on 5 main differences:
2. A leader seeks opportunities while a manager reacts. Managers must react to solve problems, put out fires, and provide direction or guidance. A leader takes time to work on the business and not in the business.
1. Managers control for risk. It’s not their job to stick their neck out. Leaders take risks although not in a hedonistic way as some debunked leaders sitting in jail may have learned. Risks are not only about taking financial risks, but taking relationship risks, too. A leader has strong people around him or her to focus on results
3. A manager maintains the organizational policies and procedures while a leader seeks to improve or change them as the business grows, changes, and evolves. Will the same policy and procedures that proved effective for a national marketing organization
hold true when the same organization becomes global? 4. A leader shows followers the way. They have a strong message and vision and can share that with others so that others are inspired to move forward with the leader. A manager follows the leader’s guidance and direction. Their performance is reviewed based on their ability to seek and follow guidance. 5. A manager manages change or coordinates employee efforts. As noted in #4, it’s part of their job description to manage change. Leaders must inspire that change effort. To that end, a leader must have good verbal and no nverbal communication skills as both are necessary for effective communication, influence, persuasion, and followership. Basically, managers focus on implementation, maintenance, and administration—mostly stable processes. Leaders focus on change, vision, overcoming obstacles and inspiration—mostly dynamic and changing processes. Yes, there are differences, but aren’t some managers good leaders? I believe that every good manager must be a good leader, but not every good leader is a good manager. A leader must inspire, provide hope and direction in order to achieve an overarching goal that includes everyone in the organization. Being a good manager is good training for the emerging leader. Emerging as a leader is a unique process all together. Linda Talley, body language expert, leadership development coach, behavioral theorist, keynote speaker, and business coach works with leaders to improve their business relationships, communication, and performance.
Request for Proposal for Audit and Tax Services The Hawaii Society of CPAs is accepting proposals from Hawaii CPA firms to provide audit and tax services for the fiscal years ending June 30, 2014 through June 30, 2017. The proposal must be submitted by June 30, 2014 for consideration by the HSCPA Budget and Finance Committee, subject to approval by the Board of Directors. The proposal must include the following: • Confirmation of scope of services being offered to include audit of the financial statements of the HSCPA and preparation of the related tax returns for the years ending June 20, 2014, 2015, 2016 and 2017; • Availability to present the audit report and management recommendation to the Board of Directors, if requested; • Estimated fees and expense reimbursement policy for each of the four years; • Copy of your firm’s most recent peer review report, the related letter of comment and your firm’s response to the letter of comment, if applicable. The HSCPA will evaluate proposals on a qualitative basis. This includes the review of the firm’s peer review report and related materials, interviews with senior engagement personnel to be assigned to the HSCPA, and the firm’s completeness and timeliness in its response to us. Proposals must be received by June 30, 2014. Send to:
Hawaii Society of CPAs Budget & Finance Committee P.O. Box 1754 Honolulu, HI 96806
April Kala 2014
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“Break Your Own Rules” by Jill Flynn, Kathryn Heath and Mary Davis Holt While the number of females graduating from college as well as getting accounting degrees is greater than males, males still dominate corporate Board, CEO and senior management positions. The authors feel women should be more represented in the executive ranks, and show how they can reach their highest potential. This book is a must read for anyone with C-Suite potential and aspirations, especially women and parents raising girls. I had the honor of being one of a handful of males in a room full of female executives attending a seminar featuring the three authors and their book “Break Your Own Rules.” I was mesmerized and knew I had to review their book. An extra bonus in the book is there are many words of wisdom from Sharon Allen, former Chairman of the Board for Deloitte, LLP. She spent her entire 38-year career with Deloitte, and was the first and only woman to ever serve as chairman of a large, private U.S. professional services organization. The essence of the book is the authors conclude based on their experience and research that there are six Old Rules (faulty assumptions) which many women follow that get in the way of achieving their full potential. They then give you the correlating six New Rules that clear the path to the executive boardroom. The following are the six Old and New Rules noted in the book, as well as things I thought would be of interest to you: 14
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Old Rules Vs. New Rules
• Focus on Others
(Instead of Taking Center Stage) Many talented women naturally focus their attention on others instead of spending their precious time nurturing their own career success. They need to take their own career dreams and aspirations seriously. This is the first fundamental step to breaking your own rules.
• Seek Approval (Instead of
Proceeding Until Apprehended) Women tend to be exceptional collaborative leaders and like to be liked. They need to act more decisively to make things happen, while still retaining their core strengths.
• Be Modest (Instead of Projecting
Personal Power) Modesty, self-depreciation, and ambivalence about projecting power come more naturally to women than men. Women need to adjust their thinking and dial up their comfort level in order to feel at home in a position of power and authority.
• Work Harder (Instead of Being
Politically Savvy) Working harder is not the key to getting promoted, and will not deliver the life that you want. Many women are disappointed when their hard work and long hours don’t pay off in terms of career advancement. You need to build your career as if you
were running for office – creating a platform, lining up sponsors, putting together a coalition – and then do it over and over again as your career goals change.
• Play It Safe
(Instead of Playing to Win) Many women let others take the lead and play it safe, because they do not want to take risks and possibly fail, even though they have proven themselves countless times. To set yourself apart from others, you need to play to win. This includes making yourself visible and taking the lead in high-stakes situations.
• It’s All or Nothing
(Instead of Both-And) “Having it all” is a common phrase in the authors’ coaching files, and it’s no coincidence that many of these women who want to have it all are the most disappointed and frustrated. Black and white thinking doesn’t lead to career success or personal satisfaction. Instead, dealing with ambiguity is the primary leadership trait women need to master.
Page 16 summarizes in more detail what the authors mean by the Old and New Rules, and the book expands on these items, giving specific examples and executive summaries. Expertise Of The Authors After 20 year careers in corporate America, they decided to use what they had learned to help other women succeed. Over the past 10 years, they have trained
over 5,000 professional women. In the course of their work, they have interviewed more than 1,700 executives, and surveyed over 3,500 people. Why We Need More Women Leaders Research has shown firms with more women executives as well as more women board of directors, outperform their competitors on key financial measures. Also having women in the boardroom improves corporate governance, because boards with more women pay greater attention to audit and risk oversight, and take into account the needs of more categories of stakeholders. The Most Critical Factor For Women To Succeed The authors have found the most critical factor for women to succeed is how women think, because their thinking directly influences their behavior. It can be either an advantage or a handicap. At first the authors assumed if they helped their clients improve their work skills, that would be enough and the promotions would follow. Not so! The thinking that motivates behavior is the fuel that sustains the behavior. A women’s path to power is filled with emotional, logistical and practical challenges. It’s a long, winding, and narrow path, but lots of women have walked it successfully, and you can too. “Do What You Love And Follow ‘The Money” Bonnie St. John, despite having her right leg amputated at age five, won three medals at the 1984 Paralympics in Innsbruck, Austria, becoming
the first African American to ever win Olympic medals in skiing. She graduated from Harvard, is a Rhodes Scholar, and is featured in many national and international media outlets. When asked how she got comfortable taking stage, she commented:
She felt she had performed very well and presented him with a list of all her accomplishments. Guess what he told her…he didn’t know she had done all those things!
When Sharon tells the story today, she laughs, shakes her head, and says, “That’s the very last time I ever let that “You know, it is a funny thing, people happen.” She continues and states, write books and give speeches saying, “Through my experience, I’ve realized “Do what you love and the money will that many women think if they work come.” I don’t agree with that. I know hard, others will recognize their aca lot of people who are doing what they complishments and they’ll be rewarded. love, and they are practically broke. What I’ve learned is that it’s important to What I say is, “Do what you love and fol- ensure that those around you recognize low the money.” Figure out what makes your accomplishments and the contribusense economically. How can I do some- tions you’ve made. And there are ways to thing that I love in a way that will pay me do that without being a braggart.” well? How can I have more success and more personal satisfaction in my life? Political Savvy And Relationships Are Critical Satisfaction is subjective; it is very perAccording to Lois Frankel, author of sonal. I think you can have high satisfac- “Nice Girls Don’t Get The Corner Oftion and high achievement, but many of fice,” “political savvy and the relationus settle for high satisfaction and low ships we forge at work are just as instruachievement or high achievement and mental to success as hard work and low satisfaction. I think we can all look accomplishments. Not only is business for creative ways to find the high satisfac- a game, but it’s a game that changes. tion, high achievement solution. In my It has rules, boundaries, winners, and case, when my daughter was young… losers. If you’re not involved in office I wanted more flexibility in my life. So politics, you’re not playing the game, I asked myself, how can I have a career and, if you’re not playing the game, where I can spend more time with my you can’t possibly win. Unfortunately, child? I decided to become a successwomen tend to avoid office politics.” ful keynote speaker and worked hard at becoming one. It took time but I did it.” What Can You Do With Your Daughters Make Sure Your Accomplishments When people ask Gail Evans, former exAre Recognized ecutive at CNN and author of “Play Like Sharon Allen shared this story about herself A Man, Win Like a Woman,” what they when she was a rising manager in her 30’s. can do with their daughters to help them She was taken aback when she received play politics better, she says, “Teach a memo announcing the promotion of them how to play chess, poker, Monopseveral colleagues and wondered why her oly, Risk, bridge, rummy – whatever the name wasn’t on it. She stewed about it for games are, they need to be taught about a few days then went in to see her boss. strategy and bluffing.” Continued on page 16
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Continued from page 15
If You Don’t Like Your Job, Get A New One! Lynne Ford, former CEO of ING Individual Retirement, told the authors, “You know that old adage: if you don’t like your friends, get new ones; there are lots of people out there who can be your friend.” She said that the same thing is true about a job. There are lots of jobs out there. If you don’t like your job, get a new one! Be A Rainmaker! Women who can sell are powerful and are considered rainmakers. Rainmakers get promoted because they bring in the business! Selling is about cultivating relationships, demonstrating genuine passion, and building trust and authenticity. Women are outstanding at this! Trait Of Successful People According to Marshall Goldsmith, “Successful people have an intense need for self-determination. They believe they do what they do because they have made a choice – not because they have to do it! The more successful someone is, the more likely this is the case. These two characteristics are connected. When we do what we choose to do, we’re more committed to it and enthusiastic about it.” Why We Need To Think Differently “By thinking differently, you’ll find it much easier to act differently. By acting differently, your voice will be heard, and you will be considered for the job opportunities you really want.” Summary While this is the most I have ever written about a book, I still feel there is so much more I want to share with you. This is one of my instant classic books which jumped to the front of the book review line when I listened to the authors and read their book. The book is well organized, easy to read, and filled with an amazing amount of helpful information. While it is geared to women, men will also find it interesting as it could equally inspire all the women in their lives. 16
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OLD RULES
NEW RULES
Focus On Others
Take Center Stage
1. I must take care of everyone else. 2. My needs come last. 3. It’s not okay to ask for help. 4. I’m a great number two. 5. I don’t belong on center stage.
1. 2. 3. 4. 5. 6. 7.
Seek Approval
Proceed Until Apprehended
1. Being liked is more important than being promoted. 2. Ambition is selfish. 3. I must ask for permission. 4. I’m afraid they’ll say no.
1. Don’t wait for permission. 2. Make things happen. 3. Fake it ‘til you make it.
Take your goals and dreams seriously. Think bigger. Aim higher. Just say no. Be ruthless with your calendar. Take time to refuel. Get famous for something. Practice taking center stage.
Be Modest
Project Personal Power
1. I feel ambivalent about power. 2. I need to be modest. 3. I feel like an imposter. 4. I don’t know how to act powerful.
1. 2. 3. 4.
Exude poise, confidence, and power. Take credit for your hard work. Don’t confide your insecurities. Practice your power skills.
Work Harder
Be Politically Savvy
1. Playing politics is sleazy. 2. I’ve never been good at office politics. 3. It’s possible to opt out of the political game at work. 4. Hard work is enough to get me noticed and promoted. 5. Business should be a meritocracy.
1. 2. 3. 4.
Play It Safe
Play To Win
1. I like my comfortable role. 2. I don’t like sales. 3. I shrink to fit. 4. I let others take the lead. 5. I might fail.
1. 2. 3. 4. 5. 6.
It’s All Or Nothing
It’s Both-And
1. I’m prone to negative thinking. 2. Everything is black and white. 3. Success means doing it all. 4. I’ll opt out.
1. 2. 3. 4. 5.
Recognize that women excel at politics. Be in the know. Run for office at the office. Become a political activist.
It is a game. Reinvent yourself. Leave your trapeze. Be a risk taker. Be a rainmaker. Do-overs are fine. Don’t limit yourself. Just get over it. Be an entrepreneur. Get centered. Call in reinforcements.
By Ron Gouveia CPA, CITP of Carr, Gouveia + Associates, CPAs, Inc. Microsoft announced a March 19th ship date for Power Cover Keyboard for the Surface Pro, Surface Pro2 and RT based Surface 2. The $200 Type Cover variant will provide 70% more battery life to these tablets and sounds like a good investment for those who do a lot of traveling. Microsoft has kicked off a blog series to help business users learn Windows 8.1. See Mary Jo Foley’s article Microsoft offers business users some Windows 8.1 hand-holding with new blog series (type title into Google) for the content of the series and a link to the blogs. I recently listened to a webinar hosted by
Darren Root, “Building Your Collaborative Client Accounting Ecosystem.” Darren advocates building an accounting ecosystem using QuickBooks hosted by Right Networks to do the accounting, SmartVault For Accountants to handle all documents, Bill. com and Tallie to automate bill payments and accounts receivable invoicing and receipts. This ecosystem, which is fully integrated, offers impressive automation with access by both the client and the CPA firm. If you want to find out more about Darren Root and his ideas about an accounting ecosystem go to www.rootworks.com. One reason to consider hosted QuickBooks instead of QuickBooks Online is that it uses the desktop version which is more robust than the Online version. SmartVault offers
cloud document storage which integrates with accounting software such as QuickBooks and offers client portals for CPA firm integration with their clients. Bill.com offers cloud automation of the accounts payable and accounts receivable process that integrates with QuickBooks. Tallie offers automation of the expense reimbursement process with integration with Bill.com and QuickBooks. Together these applications provide an integrated ecosystem linking client and CPA firm. Here’s another reminder that the April 2014 deadline for getting off Windows XP is here. You should upgrade to Windows 7 or Windows 8.1 now. If you have any questions or comments call me at (808) 837-2507, or send e-mail to ron@cga-cpa.com.
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Hawaii’s Unclaimed Property Program By Lynnsey Okada
Have you ever waited weeks to do a load of laundry? During busy season, it feels like months in between loads, but when you finally get around to it, you may find old receipts, random pieces of jewelry, or sometimes, if you’re lucky, wads of cash sitting in your jeans pocket. Finding things I forgot I even had is one of those simple joys in life that make my busy season just a little bit brighter. A few weeks ago, a friend of mine told me about Hawaii’s Unclaimed Property Program, a State program whereby unclaimed property is held in a custodial capacity by the State of Hawaii until the rightful owner or heir claims it. What is the Unclaimed Property Program? The unclaimed property program is administered under the provisions of Hawaii Revised Statute 523A. Its purpose is to act as a custodian for the unclaimed property of individuals and businesses until claimed by their rightful owner. According to HRS 523A, types of property held by the State include: 1) money, in the form of a check, draft, deposit, interest, or dividend; 2) a credit balance, customer’s overpayment, gift certificate, security deposit, refund, credit memorandum, unpaid wage, unused ticket, mineral proceeds, or unidentified remittance; 3) stock or other evidence of ownership of an interest in a business
association or financial organization; 4) A bond, debenture, note, or other evidence of indebtedness; 5) money deposited to redeem stocks, bonds, coupons, or other securities or to make distributions; 6) an amount due and payable under the terms of an annuity or insurance policy, including policies providing life insurance, property and casualty insurance, workers’ compensation insurance, or health and disability insurance; and 7) an amount distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings, supplemental unemployment insurance, or similar benefits. Property is considered to be abandoned when there has been no owner activity in relation to the account for a specific period of time and when the holder of the asset is unable to contact the owner. How can you tell if any unclaimed/ abandoned property belongs to you? The State’s unclaimed property program can be found at the following website: http://budget.hawaii.gov/finance/unclaimedproperty. Once at the website, click on the “search now” link to the right of your screen. The link will take you to an online database, which allows you to enter the name of any individual or business. After doing so, click on “Begin Search.” If you are in luck, the
database will pull up any unclaimed property the State is holding in your name. How can you claim your property? To the left of any property identified in the database based on your search, there is a link under “Prop ID” that you can click on to file a claim. Once you click on the link, you will be presented with an online form, asking for information such as your name or business name, social security number, address, birthday, and email address. After entering your information, click “next.” The website will take you to another page with a summary of your information. After verifying the information is correct, click on “Claim form” at the bottom of the page. The link will create a claim form which you will need to print, sign, and submit to the State of Hawaii Department of Budget and Finance Unclaimed Property Branch. Along with the claim form, you will also need to submit additional documentation, which includes a copy of a current government issued ID showing your current email address, and, 2) a copy of a document showing your affiliation with the address shown on the owner information. Not everyone has unclaimed property held by the program, but it is definitely worth your time to take a look. Maybe you’ll find more than what’s hiding in your jeans pocket.
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2014 TAX BOOK ORDER FORM ALL SALES FINAL
2014 CCH U.S. Master Tax Guide – $60.00 / $70.00 Provides helpful and practical guidance on today’s federal tax law. This 97th Edition reflects all pertinent federal taxation changes that affect 2013 returns and provides fast and reliable answers to tax questions.
2014 RIA Federal Tax Handbook – $40.00 / $50.00 The Handbook reflects all federal tax legislation passed by Congress to date of publication. It also reflects other key developments (such as new regulations, rulings and revenue procedures) affecting the 2013 return and the 2014 tax year.
2014 Taxes of Hawaii – $26.00 / $35.00 Hawaii’s only comprehensive tax-season tool! Updated annual publication with all the new state tax laws and court decisions. An invaluable reference used by Island and mainland CPAs, tax preparers and bookkeepers, as well as attorneys, small businesses, individual taxpayers and students. Includes income tax rate tables, specimen tax forms and vital information on income. General Excise, use, estate, property, unemployment, transient accommodations and other taxes.
2014 TAX BOOK ORDER FORM Quantity
Member Price
2014 CCH U.S. Master Tax Guide
$ 60.00
$ 70.00
2014 RIA Federal Tax Handbook
$ 40.00
$ 50.00
2014 Taxes of Hawaii
$ 26.00
$ 35.00
Mailing: Postage & Handling* $6.00 for 1st book
1 - $6.00
1 - $8.00
2nd + - $3.00
2nd + - $3.00
$3.00/book for 2nd book & thereafter
*Mainland/International - call for pricing
TOTAL AMOUNT DUE
o No mailing necessary – will pick up at the HSCPA office on o Check #
$
Non-Member Price Total
(call before pick-up)
o VISA o MasterCard Card No.
Signature
Print name on card
Name
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Address
Tel
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Please remit completed form with payment to: HSCPA • P.O. Box 1754 • Honolulu, Hawaii 96806 • T - (808) 537-9475 • F - (808) 537-3520 • E-mail: info@hscpa.org
HSCPA 54TH ANNUAL CONFERENCE
June 20, 2014 Hawaii Prince Hotel Waikiki
J
oin us and other industry leaders at the 54th Annual Conference of the Hawaii Society of CPAs on Friday, June 20, 2014 at the Hawaii Prince Hotel. This Conference promises to be a rewarding and informative day featuring some of the most trusted and highly-respected leaders in the nation. The program is guaranteed to keep you informed on the challenges and opportunities facing the profession. Our keynote speaker is one of the top leaders in the profession and we are honored to have Barry Melancon, President and CEO of the American Institute of CPAs, give his always informative and thought-provoking presentation on the most up-to-date issues affecting the accounting profession. If you haven’t experienced a “Barry update” before, you will be mesmerized by his depth of knowledge of the profession. We are delighted to welcome back one of Hawaii’s most influential business leader, David Heenan. He continues his legacy as educator and is a visiting professor at Georgetown University and as a prolific author of several books on business and leadership. His latest book, “Leaving on Top: Graceful Exits for Leaders”, offers some thought-provoking messages on dealing with one of life’s most formidable challenges: the graceful exit. Keeping your undivided attention through the Conference will be Hawaii’s favorite FBI Special Agent, Tom Simon. He will be discussing the epidemic of investment frauds that have been plaguing the Hawaii economy over the past four years. The presentation will present high-profile investment scam cases investigated by the FBI in Hawaii with a goal toward making attendees better able to recognize the tell-tale signs of a Ponzi Scheme before clients, friends, and family members are financially ruined. You don’t want to miss this! Don’t miss this opportunity to hear top-flight speakers, a dynamic program and great networking at Happy Hour immediately following the conclusion of the Conference! Register now at https://www.hscpa.org/professional-development/ AC1413/hscpa-54th-annual-conference for the best CPE deal this year . . . 7 CPE credit hours, complete breakfast and lunch, awesome speakers and Happy Hour – what more can you ask for!
Honoring Accounting Legends 2014 HSCPA Legacy Hall of Fame The Hawaii Society of CPAs is proud to honor those in the profession who have paved the way for the next generation. They are the Trailblazers . . . the Mentors . . . the Legends. Please join us in saluting:
Gary T. Nishikawa
Garrett K. Serikawa
Keiji Tsuhako
Distinguished Achievement in Accounting Education
Warren Y.F. Wee
Our distinguished speakers:
Barry C. Melancon, CPA, CGMA
Barry C. Melancon is the President and Chief Executive Officer at the American Institute of Certified Public Accountants (AICPA), the national professional association of CPAs, with nearly 386,000 members worldwide. He directs the Institute’s operations in New York; Durham, NC; Washington, DC and New Jersey.
As head of the largest body of CPAs in the world, Melancon is called upon to represent the Institute with
David A. Heenan
David A. Heenan is a trustee of the Estate of James Campbell, one of the nation’s largest landowners, and a visiting professor at Georgetown University. Formerly, he served as chairman and CEO of Theo. H. Davies & Co., Ltd., the North American holding company for the Hong Kongbased Jardine Matheson. Earlier, he was the vice president for academic affairs at the University of Hawaii and, before that, dean of its business school. In addition, he has worked internationally for Chevron, Citicorp and McKinsey—and is a former Marine Corps pilot.
Mr. Heenan holds the A.B. degree from the College of William and Mary, the M.B.A. from Columbia University
Tom Simon
Special Agent Tom Simon joined the Federal Bureau of Investigation in 1995. He currently investigates high-yield investment frauds, major embezzlements, and traditional white collar crimes affecting Hawaii’s residents and small business community. In addition to his investigations, Tom also serves as the press spokesperson for the Honolulu FBI office and is a regular fixture on local news programs and radio talk shows.
Prior to transferring to the FBI Honolulu office in 2009, Tom worked at the FBI Chicago office for 14 years where he investigated financial crimes, counter-terrorism, and political corruption. Following the 9-11 attacks, he was assigned to a team of Special Agents who dismantled
state, national and international organizations and is sought after by key opinion leaders for his expertise. Under Melancon, the Institute has spearheaded a number of initiatives designed to benefit not only the profession, but also investors, business owners, lenders and the general public. These include audit quality centers; private company reporting standards; eXtensible Business Reporting Language (XBRL); the computerized CPA exam; and two consumer financial literacy education programs. and the Ph.D. from the Wharton School of the University of Pennsylvania. He has served on the faculties of the Wharton School and Columbia Business School. He also serves or has served on the boards of eight publicly traded companies. An active writer, Mr. Heenan’s articles have appeared in such diverse publications as the Harvard Business Review (eight times), the Sloan Management Review, The Wall Street Journal, The New York Times and The Christian Science Monitor. He is the author or co-author of eight books, including Leaving On Top: Graceful Exits for Leaders, Bright Triumphs From Dark Hours, Flight Capital and Co-Leaders. several Islamic charities funneling money to Al Qaeda and other extremist groups. As his final case in Chicago, Tom was on the team of agents who investigated Illinois Governor Rod Blagojevich which culminated in convicting the Governor of attempting to sell the U.S. Senate seat formerly held by U.S. President Barack Obama. Tom earned a Bachelor’s degree in Accounting from Clemson University and is a non-practicing certified public accountant. He worked at KPMG as a Forensic Accountant for three years before joining the FBI.