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Accounting Illustrated: Technology in the Tax Department

by Abby Alger

Accounting Illustrated by Accounting Principals

tax-tech-accounting-principals

Accounting Illustrated is back with a second installment: Technology in the Tax Department! In each episode, we bring the latest accounting and finance insight to life with hand-drawn depictions of what’s shaping the industry. In this episode, we discuss information from our recent Tech Tax white paper.

To comply with rules and regulations (like Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act) companies are investing in tax technology. By putting everything in one place, data warehouses are of huge value to companies. Of companies with over 1,000 employees, 71-percent rely on multiple financial systems from multiple vendors. In this episode, we also address the great debate for business leaders: to host or not to host? Companies must decide between hosting data on their own local servers or working with hosting providers. We weigh the pros of each to help you decide!

As new technology fills the tax department, the need for tech-savvy finance professionals is growing fast. Finding a specialist that can properly use these technologies can give any team a clear advantage during tax season and all year long. A tech-savvy tax specialist should be able to understand how technology integrates with enterprise software, ensure that automated reports are clear and accurate, as well as have the business knowledge to speak the language of the boardroom.We at Accounting Principals can help you understand all of the technology impacting the accounting and finance world, and supply you with tech-savvy tax specialists to complete your workforce!

Don’t have a copy of our Tech Tax white paper? You can request one on our website!

Watch Accounting Illustrated: Technology in the Tax Department below, and leave your feedback in the comments!


Accounting Illustrated: Technology in the Tax Department from AccountingPrincipals
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Accounting and Finance Salary Guide: Roundtable Rewind

by Abby Alger

api-roundtable-rewind

Last week, we hosted a virtual roundtable on our Google+ page to discuss our 2014 Salary Guide. It’s up to business leaders to strike the balance between an economy on the rise and a workforce looking for raises in order to recruit and retain top talent. The 2014 Accounting Principals Salary Guide can help. During our roundtable, we provided the critical compensation insight you need to recruit and retain top accounting and finance talent in today’s market. If you were able to make the roundtable, we thank you for hanging out with us! If not, we’ve got you covered. Here are a couple highlights!

 

Michelle Clark

“We’re seeing a lot of staff and senior accountant positions  opening up, and there is not a lot of talent there. My advice to employers is that if you have an employee that is a key component to your company, you need to keep that employee in place. Consider giving them at least a 5% raise if not a 10% raise. We’ve come to a point where working candidates are now ready to move on to their next job. Don’t lose your best people.” 

-Michele Clark, Division Director

 

Byron White

“The entry-level candidate that has don an internship and has some sort of relevant employment in addition to their academic performance are the candidates that are getting more demand. For companies, partnering with internship programs at local universities usually leads to more success with entry-level talent.”

-Byron White, Managing Director

 

Our Managing Directors have many years of experience in accounting and finance staffing, and we’re always willing to share our knowledge. You can view our entire virtual roundtable below! Don’t forget to  Follow us on Google+ for important insights and announcements about upcoming roundtables, contests and events.

Have any unanswered questions? We would love to hear from you! Visit our website to find your local office.


Virtual Roundtable: Our 2014 Salary Guide from AccountingPrincipals

Finance and Accounting Jobs Report: February 2014

by Abby Alger

january 2014 hiring numbers as reported by the BLS

 

 GAINS, REVISIONS & SHORTFALLS 

 

The BLS “The Employment Situation — January 2014” report revealed only 113,000 new jobs were added to the United States economy — once again, thousands less than expected by economists.

After a disappointing December report with only 75,000 jobs added, January marks the second month in a row that has come up short. Prior to these reports, the United States was reporting an average of 204,000 jobs added month over month from August to November 2013.

REVISIONS ON PREVIOUS NUMBERS ADD UP TO GOOD NEWS 

 

The January report also showed revisions to the November and December numbers released. An additional 1,000 jobs were added to December 2013, and 33,000 were added to November 2013. This makes the total number of jobs added in November 2013 a pleasing 274,000, the highest total since January 2012. These revisions are proof that despite a few bumps in the road, the US economy is in fact growing.

THE FORECAST FOR THE JOB ECONOMY

 

As mentioned in our previous report, many blame harsh temperatures for the recent decrease in employment numbers. However, the BLS has stated that, “In order for severe weather conditions to reduce the estimate of payroll employment, employees have to be off work without pay for the entire pay period.” Unfortunately, only future data will tell if this is truly the case.

The report also reported that the unemployment rate dropped marginally in January, sitting currently at 6.6 percent. This number is almost that of October 2008’s 6.5 percent unemployment rate. The past three months have shown a steadily declining jobless rate, with each month dropping by 0.6 percent.

AN OPTIMISTIC OUTLOOK FOR ACCOUNTING & FINANCE

 

accounting principals senior vice president trent beekman speaks to accounting today about the january 2014 jobs report issued by the BLSIn the accounting and bookkeeping services sector, employment grew by 5,000 and temporary help services employment added 8,000 jobs in the month of January. Job growth in this sector averaged 19,000 per month in 2013. Accounting Principals Senior Vice President, Trent Beekman, sat down with Accounting Today to discuss the growing sectors.

“If you look at the numbers and drill down, we’re seeing a pretty good pickup in what we would see as traditionally slower months, which is November, December and January,” he said. “The demand we see shows there is not as much supply, which makes it a favorable candidate-based market. That’s continued to be pretty strong for the last 18 to 24 months.”

Accounting Principals has seen its typical demand for temporary help during audit, tax and budgeting season. “That’s a time when temporary and seasonal employment picks up because of the demand for tax, really until sometime through the extension period,” he added.

In a candidate-based market, finding top talent is the key to success. At Accounting Principals, we align top accounting and finance professionals with great companies to create businesses that prevail in all economic circumstances. Contact your local Accounting Principals office today!

Accounting Illustrated: 2014 Salaries, Trends and Predictions

by Abby Alger

Accounting Illustrated - Finance & Accounting Salaries Edition

You should know by now that you can count on us here at Accounting Principals to bring you the most recent trends, accurate data and in-demand talent in the accounting and finance industry. We’ve taken it to a whole new level with our new video series, Accounting Illustrated! In each episode, we will bring the latest accounting and finance insight to life with hand-drawn depictions of what’s currently shaping the industry.

In our first episode of Accounting Illustrated, we dive into our 2014 Salary Guide. We take an in depth look at the average finance and accounting salaries, as well as total compensation data for popular accounting and finance positions. You’ll learn the top salary trends in the accounting and finance space, what influences a salary increase, top jobs for MBA grads, the most in-demand jobs, popular retention tactics, and predictions for the future of  accounting and finance salaries. Watch Accounting Illustrated: 2014 Salary Trends and Predictions below, and leave your feedback in the comments!

Most importantly, don’t forget to request your free copy of the Accounting Principals 2014 Salary Guide.

Accounting Illustrated 2014 Salary Guide Trends and Predictions from AccountingPrincipals

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Accounting and Finance News | Week of 1/27-1/31

by Abby Alger

accounting and finance industry news

You can count on us to bring you the latest news updates in the accounting and finance industry! Here’s what happened this week:

IASB Releases Interim Accounting Standards for Rate-Regulated Utilities

The International Accounting Standards Board has released an interim standard for businesses that engage in rate-regulated activities, such as gas, electric and water utility companies, even as a new report from two prominent accounting profession organizations outlines some of the challenges the IASB is facing.

Read more on Accounting Today.

Obama offers new ‘myRA’ retirement accounts

On Tuesday, President Obama offered up a new kind of “starter” retirement accounts aimed at employees of companies that don’t offer such plans. Obama is calling them the “myRA” and said he would, by executive order, direct the Treasury Department to create them. Details were scarce Tuesday night, but employees will be able to contribute part of their wages to the savings accounts, which would be backed by the U.S. government.

Read more on CNN Money.

Spreadsheet-Based Form 1040 Available at No Cost for 2013 Tax Year

Although the IRS is still madly preparing for the 2013 filing season, one man remains ahead of the curve. Glenn Reeves of Burlington, Kansas, has released his seventeenth spreadsheet-based version of the US Individual Income Tax Return, commonly known as Form 1040. Since 1997, Mr. Reeves has pursued this “labor of love,” which means he allows any taxpayer to download and use the spreadsheet for free.

Read more on AccountingWEB.

For more industry insights, visit our website or contact your local Accounting Principals office today!

Fees, Guidelines, and Essentials: Get Caught Up On The Latest In PPACA Compliance

by Abby Alger

accounting principals ppaca

 

The Patient Protection and Affordable Care Act changed the healthcare landscape forever, and there are many aspects of the law that are still changing today. To help keep you up to speed — and in compliance — we’ve put together a list of the most critical updates that you need to know.

New fees for employers

The PPACA mandates two fees for employers — transitional reinsurance program fees and patient-centered outcome research fees.

•  Transitional reinsurance program fees

Fully insured and self-insured group health plans providing major medical coverage will be assessed an annual fee from 2014-2016. In 2014, the fee is set at $63 per plan participant (including spouses and dependants). These fees were established to generate stability for premiums in the individual insurance market.

•  Patient-centered outcome research fees:

Mandated by the IRS, these fees are applicable to health insurance issuers for fully-insured group health plans and plan sponsors of self-insured group health plans. The fee is $2 multiplied by the number of participants (including spouses and dependants) covered under the health plan. These fees are applicable through 2019, and employers must report and record the fee on Form 720.

Established essentials

By January 1, 2014, individual states were required to identify minimum criteria for “essential health coverage,” and plans offered through state exchanges must meet these thresholds. Though large employers (those with 50 full-time employees or the equivalent) are not required to offer coverage meeting these thresholds, offering sub-standard coverage could drive more of your employees to the exchanges which, in turn, could cost you under the employer mandate.

Changing wellness program reward guidelines

If you offer a health-contingent wellness program that requires your employees to meet a health threshold or achieve a health outcome in exchange for a reward, the amount of the reward has been increased from 20 percent to 30 percent of the total cost of employee only coverage under your healthcare plan. In addition, you must ensure that all employees have reasonable access to the reward. Thus, if your thresholds or targets discriminate against those with disabilities or others within your workforce, you must provide an alternative means of achieving the reward.

To learn more about these changes, or for help mitigating the impact of the Patient Protection and Affordable Care Act, contact your local Accounting Principals office today!

 

Finance and Accounting Jobs Report: January 2014

by Abby Alger

API-JAN-JOBS-ADDED

Disappointing December Jobs Report Baffles Economists

The BLS “The Employment Situation – December 2013” jobs report has caused the most confusion and disappointment in years. Although 197,000 jobs were expected to add to the economy in December, only 74,000 jobs were added to nonfarm payrolls. Before the December report, the US employment situation was averaging 204,000 new jobs on a monthly basis (August-November).  Economists were baffled, as the report shows a gain of just 74,000 jobs in December 2013. This number is the smallest gain seen in the US since 2011. For a more in-depth look at the report, contact your local Accounting Principals office.

What is to blame?

It is normal for December to see a decrease in jobs, as the Holiday season creates empty offices. But this December was hit by other factors that significantly impacted hiring. One huge factor was the Polar Vortex. The deep freeze that caused high electric bills, water pipe damage, closed offices, and thousands of cancelled flights is expected to cost the US $5 billion. Outdoor industries took a huge hit, such as construction, which added 16,000 less jobs in December than November. Aside from weather, the country has also battled widespread flu outbreak. According to the Centers for Disease Control and Prevention, widespread influenza activity has been reported in 40 states. With a combination of weather, holidays, and illness, it could also be said that job seekers had little motivation to hunt for jobs in December. Additionally, many retirees could be factored into this number, as more and more baby boomers opt to leave the workplace.

Some Industries Beat the Odds

Despite a loss of commercial banking positions, the Financial Activities sector reported its second consecutive month of job growth in December. 4,000 new jobs were generated in all, as rental and leasing service companies and insurance carriers hired. Professional and Business Services added 19,000 new jobs in December. Within the last 12 months alone, the sector has generated 637,000 new jobs. Within this sector, Accounting and Bookkeeping Services added 24,700 less jobs in December than November 2013. Although hiring is slow, this number will rise as new hires are needed for tax season. As evidenced by December’s jobs report, employers are still seeking the services of workforce solutions companies to fulfill their staffing needs. In December, the Temporary Help Services sector reported its eleventh successive month of job creation, with 40,400 new jobs generated in all. 2.8 million workers were employed within the sector.

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Optimizing Success: Generational Diversity In The Workplace

by Accounting Principals

multigenerational-workforce

With Traditionalists, Baby Boomers, Generation X, and Millennials all working together under one roof, understanding how to motivate each generation is key. In our new white paper, "Generation Optimization", we dig into generational diversity in the workplace, outlining each generation to find out how to attract them to your organization, keep them there, and motivate them to do their best work.

Traditionalists

Traditionalists, (born 1925-1945) are currently 2% of the workforce. Responsible, loyal and conventional, these workers are looking for stability and financial security. With respect and recognition, traditionalists will always perform.

Baby Boomers

Representing 32% of the workforce, Baby Boomers (born 1946-1964) are the first generation to bring along college degrees. 27% of these altruistic, open-minded individuals attended college. This extremely coachable generation is more open to technology than the Traditionalists before them. Boomers are looking for benefits and financial security in a career. Motivate this generation with respect and autonomy in the workplace.

Generation X

Generation X (born 1965-1979) is representing the largest percentage of the workforce, with 39%. These individuals are tech-savvy, independent, risk takers that are motivated by recognition, collaboration, and flexibility. Education is important to this generation, as 60% attended college. Stability, performance-based incentives, and a flexible schedule matter the most to Gen X.

Millennials

The extremely tech-savvy and independent generation, Millennials (born 1980-2000), represent 27% of the workforce. Motivated by collaboration, involvement and feedback, 62% of these individuals attended college. Up-to-date technology, corporate culture, and performance-based incentives are important to this young generation.

Our infographic (below) puts the motivators, values, and characteristics of each generation side by side to help business leaders recognize where similarities and differences lie.

For an in-depth look at each generation, request your free copy of our Generation Optimization white paper!

Generational diversity in the workplace (infographic)

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GAAP to IFRS: the Ultimate Resource Roundup

by Accounting Principals

An accountant researching resources for IFRS and GAAP accounting standards.

Until recently, finance and accounting systems have varied between companies. Globalization, however, has pushed for the inevitable – with more businesses engaging in international activity, the need for consolidated accounting systems is stronger than ever.

Globalization, the Sarbanes-Oxley Act, and the SEC adoption of international standards has been placing pressure on the U.S. and other countries to close gaps between International Financial Reporting Systems (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP).

Education is half the battle for completing this transition successfully. Whether you operate in public or private accounting, teach yourself and your accounting team what your company needs to know to navigate this financial labyrinth. Here are five resources to help you along the way: 

 

The Impact Of Combining The U.S. GAAP And IFRS

(Source: Investopedia)

This article walks through the impact of GAAP to IFRS transitions on financial reporting, corporate management, investors, stock markets, accounting professionals, and accounting software setters. You’ll also learn about arguments – for and against – the transition as well as research about quality standards

 

US GAAP Convergence & IFRS Knowledge Center

(Source: PricewaterhouseCooopers (PwC))

The PwC has assembled a comprehensive knowledge center with a video series and collection of reports that detail steps that accounting professionals can take to navigate a transition in financial systems. There is also a newsletter available for accounting professionals to receive regular updates on the U.S. GAAP convergence process.

 

IFRS GAAP Comparison Publications

(Source: KPMG)

KPMG has put together several e-guides to help accounting professionals understand the differences between IFRS and accounting principles that are accepted in specific countries. The reports will teach readers how to recognize, measure, and present differences. The most recent report was released in November 2013 and focuses on a direct comparison between IFRS and U.S. GAAP.

 

Comparison of U.S. GAAP and IFRS

(Source: Grant Thornton)

This whitepaper is designed to help accounting professionals understand the major similarities and differences between U.S. GAAP and IFRS. The comparison only covers the differences that Grant Thornton believes to be encountered by accounting professionals in everyday business. This resource will help audiences distill complex details into their most important components.

 

Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S. Insurers

(Source: SEC)

In July 2012, the SEC released its final staff report that reviews its Work Plan for global accounting standards. The Work Plan is not designed to provide an answer to the philosophical question of whether transitioning to IFRS is in the best interest of the U.S. securities markets. Rather, the guide walks through tactical and logistical considerations for the transition.

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Final Thoughts

There is no cookie-cutter, one-size-fits-all approach for the transition. Organizations need to compare notes, navigate nuances, and adopt the best strategy that is right for their account teams and operations. What has your organization learned, and how is that knowledge evolving your workplace? Share your thoughts in the comments section below. We also invite you to subscribe by e-mail, and join us in the ongoing conversation.

PPACA Confusion Can Make or Break a Tax Pro

by Abby Alger

Confused-Tax-Payer-Obamacare

The taxpaying public has started drilling the tax department with questions pertaining to the Patient Protection and Affordable Care Act. The PPACA with it’s enrollment website, tax breaks, and new taxes, has added even more confusion to pre-tax season.

“Most of the changes that are to be implemented in 2014 have to do with healthcare coverage.“ Charles E. McCabe, President and CEO of The Income Tax School wrote this past September. “This Provision requires that each person either have the minimum essential coverage, qualify for an exemption or make a payment when filing his or her federal income tax return.”

Chuck-McCabe

“Forty of the 500 provisions in the ACA amend or add provision to the U.S. Tax Code. This Provision requires that each person either have the minimum essential coverage, qualify for an exemption or make a payment when filing his or her federal income tax return.”

-Charles E. McCabe, President & CEO of The income Tax School

 

Many believe that the PPACA and all of it’s confusion will hinder the relationship between accountant and client. This confusion could change a relationship built on trust and mutual success, to one that could create a negative outlook on accountants. The tax department could go from being seen as an ally, to being seen as “narcs” or “rats” very quickly if the line of communication isn’t clear. The IRS isn’t fighting this battle, so the ball is in the hands of accounting and tax preparers. If they fail to report non-compliance with the PPACA, tax pros could face prosecution for fraud. While all of this is important to consider, we have a different outlook.

If you are a new or temporary hire, being able to educate your clients on the PPACA is a way that you can earn respect and potentially gain clients in the future. The PPACA could open doors for your career, and raise you above the rest. If you are currently seeking a temporary or permanent position in accounting, understanding intricate details of the PPACA could set you apart from other applicants and snag you the position you’ve been looking for. Our suggestion? Read up on everything you can.

 

For our accountants currently in the workforce, are you getting questions from your clients? What are you doing to clear the fog?