Accounting Today articles from August 2007

Accounting Today archives from August 2007

Retirement Management: Now what?: Good financial planning doesn't stop the day a client retires - it just changes focus.
August 6, 2007... Although there are reams of literature and generally accepted guidelines stating that people typically spend 75 percent to 80 percent of their pre-retirement income during retirement, some advisors have found that's not necessarily the case....

Pracs to IRS: Get with the times!: Collection Financial Standards haven't been updated since January 2006.
August 6, 2007... The Collection Financial Standards, the measures used by the Internal Revenue Service in negotiating installment agreements and offers in compromise, have been stuck in a time warp, according to observers. "They haven't been updated since...

EAs to lawmakers: Qualify AMT preparers!: 'Repealing the full AMT would be a huge step in the simplification of the Tax Code, but one that may no longer be in the cards.'.
August 6, 2007... WASHINGTON, D.C. -- Conceding that a full-blown repeal of the alternative minimum tax may now be near-impossible, representatives of the nation's enrolled agents urged Congress to place new restrictions on the type of tax preparers authorized...

Correction.(Correction notice)
August 6, 2007... The review of off-the-shelf accounting software in the July 9-22, 2007, issue (page 22) incorrectly said that QuickBooks users' only options for payroll were QuickPay or an outside service bureau. In fact, QuickBooks offers a number of...

Connecticut gov vetoes GAAP bill.(Jodi Rell )(Brief article)
August 6, 2007... HARTFORD, CONN. -- Connecticut Governor Jodi Rell vetoed a bill that would have allowed Connecticut to set its own accounting standards. "I have serious concerns about the potential fiscal impact this bill may have," said Rell. "The plain...

GASB defines basic elements of gov't financial statements.(Governmental Accounting Standards Board)
August 6, 2007... NORWALK, CONN. -- It may seem belated, but the Governmental Accounting Standards Board has just recently gotten around to defining such fundamental accounting concepts as "asset" and "liability." It has also defined a pair of distinct...

In Brief.
August 6, 2007... PWC TO PAY $225M IN TYCO SUIT CONCORD, N.H. - Big Four firm PricewaterhouseCoopers agreed to pay $225 million to settle a securities and accounting fraud class-action lawsuit brought by Tyco shareholders. The settlement covers...

Editor's desk: Walker's wake-up.
August 6, 2007... When it comes to fixing things in my home, I hail from the Woody Allen school of repair. I try something twice. After that, I start to hit. When it comes to my car, I often ignore it and hope that it goes away - sort of like many Americans when...

Commentary: Succeeding in the Idea Age.(knowledge management)(Reprint)
August 6, 2007... There is a confluence of events brewing, equal to an organizational version of a perfect storm, and it will have consequences that are difficult to pinpoint. The elements coming together include the following: a wave of Baby Boomers set to...

IRS's Free File Program sliding despite e-filing mandate.(United States. Internal Revenue Service)
August 6, 2007... Fewer taxpayers took advantage of the Internal Revenue Service's free electronic tax return filing service in 2007 than in previous years, according to a new audit report released by the Treasury Inspector General for Tax Administration. ...

In Brief.
August 6, 2007... PRIVATE COLLECTION PROGRAM SURVIVES HOUSE VOTE By a margin of 240-179, House lawmakers approved funding for the Internal Revenue Service for fiscal 2008, and in the process eliminated a provision that would have capped spending on the...

A review of end-of-term tax cases.
August 6, 2007... It is always difficult to get the Supreme Court to review a case, but this seems especially true for tax cases. The recent court term just ended proved to be no exception. Of several cases practitioners were hoping that the court would accept,...

IIA study indicates a rapidly maturing profession.(Institute of Internal Auditors)
August 6, 2007... ALTAMONTE SPRINGS, FLA. -- When the Institute of Internal Auditors reached out to the world in an effort to understand the nature of internal auditing, it hoped to get comments from 20 countries. It heard from 91. The 9,344 responses...

Change of auditors.
August 6, 2007... CVB ENGAGES KPMG CVB Financial Corp., an Ontario, Calif.-based holding concern for Citizens Business Bank, has hired Big Four firm KPMG as its independent accountant, replacing McGladrey & Pullen. In a filing, no reason was given for...

It's time to throw the equity method overboard.
August 6, 2007... The more we consider what the Financial Accounting Standards Board accomplished with SFAS 159, the more we're warming up to the sea change it represents. This standard, titled "The Fair Value Option for Financial Assets and Financial...

Do REITs make sense for your client's portfolio?
August 6, 2007... By now, your clients should have heard the term "REIT," or real estate investment trust, in the investment world, but they may be wondering what one is and how it works. First, they should know that REITs are not new. They've been around...

In Brief.(United States. Internal Revenue Service's employment law)(H.D. Vest Advisory Services Inc.'s asset valuation)
August 6, 2007... IRS RULES ON PARTIAL TERMINATION The Internal Revenue Service ruled that a partial termination of a qualified plan occurred where 23 percent of a plan's participants were no longer active due to the closing of one of the employer's four...

Software Review: The byword for payroll in '07: 'Accountant-centric'.
August 6, 2007... In 2007, it's clear that payroll processing has become better, cheaper and faster - particularly at the small-business end of the marketplace. Companies like Intuit and Sage are building payroll into their accounting products for all but...

In Brief.(Sage Software Inc.'s new software)(report on small businesses)(Brief article)
August 6, 2007... SAGE RELEASES TIMESLIPS 2008 Sage Software has released the latest version of its billing application, Timeslips by Sage 2008. The new offering allows greater capability for determining when clients should be billed based on billing...

Part-time partners: A look at your future.
August 6, 2007... During the first-ever Women's Forum in May, we had the privilege of speaking to a group of 200 professional women who were smart and fun, and had plenty to say about what is working and not working in our industry. One of the most interesting...

New Products.
August 6, 2007... SOFTWARE & SERVICES QUICKBOOKS GOES OPEN SOURCE Intuit Inc. has announced that users will soon be able to run its QuickBooks Enterprise Solutions mid-market accounting software on servers running the Linux open-source operating system....

People.(briefs)(appointments)
August 6, 2007... CALIFORNIA Jeff Faust, director of business valuations at Greenstein Rogoff Olsen & Co. LLP, Fremont, has earned the Accredited Valuation Analyst designation from the National Association of Certified Valuation Analysts.... Karen M....

Firms.
August 6, 2007... FLORIDA Friedman, Cohen, Taubman & Co. LLC, Plantation, has revamped and relaunched its FamilyFirst Elder Planning Services practice, adding family updates, home inspections and maintenance, and hurricane protection plans to its financial...

Coming Events.
August 6, 2007... August 8-10: NCCPAP Summer Conference, National Conference of CPA Practitioners. Cape Codder Resort, Hyannis, Mass. Contact: (888) 488-5400. 8-10: SME Advisors Conference, Canadian Institute of Chartered Accountants. Niagara Falls,...

Advertiser Index.
August 6, 2007... Advertiser Page 1st Global 19 AccountantsWorld 31 ADP Small Business Services 15 The Advisory Board 29 CCH Tax Group 7,32 Ceridian 8 Robert Half International 9 Sage Software 16-17 Serenic...

Sarbanes-Oxley: SOX at 5: The profession reflects on a milestone.
August 20, 2007... On a muggy July day five years ago, President George W. Bush put his pen to the Sarbanes-Oxley Act, an expansive piece of corporate reform legislation designed to help restore investor confidence in a nation scarred by an apparently unending...

Litigation Support: Can I get a witness?: CPA firms strive to meet the rising demand for litigation support services.(certified public accountants)
August 20, 2007... If forensic accounting is sexy, litigation support is hot - and CPAs who offer these specialty services are finding their firms' business boiling over into new areas. Being retained by legal counsel to give an expert opinion is at the core...

SEC calls for more support for GASB.(United States. Securities and Exchange Commission's Christopher Cox)(Governmental Accounting Standards Board)
August 20, 2007... NORWALK, CONN. -- Is the Governmental Accounting Standards Board in trouble? "Trouble" may be too strong a word, but it's been a bumpy couple of months for the state and local government standard-setter. In December, the Government...

News Analysis: 2008 candidates long on issues, short on tax reform.
August 20, 2007... WASHINGTON, D.C. -- While the current crop of 2008 presidential candidates continues to stake out positions on the Iraq war, health care and the economy, only a few have shown much interest in a key issue of concern to most tax professionals -...

SEC approves new auditing standard.(Securities and Exchange Commission)(Brief article)
August 20, 2007... WASHINGTON, D.C. -- The Securities and Exchange Commission approved the Public Company Accounting Oversight Board's new internal control auditing standard by a 5-0 vote in late July. Registered audit firms are now required to use the new...

ASPs: Not just for big firms anymore: Smaller firms help hosted offerings gain traction.(application service provider)
August 20, 2007... The advantages of application service provider technology are becoming apparent to more tax professionals as the larger players in the field continue to tout its benefits, while smaller entries prepare their own offerings. "The most...

In Brief.(Brief article)
August 20, 2007... PCAOB PROPOSES NEW ETHICS RULE WASHINGTON, D.C. - The Public Company Accounting Oversight Board has proposed a new ethics rule on communicating with audit committees concerning independence. Rule 3526 would require an accounting firm...

Correction.(Correction notice)
August 20, 2007... "Audit boards, academics to re-assess audit reports" (July 9-22, 2007, page 14) incorrectly identified the university affiliations of five professors running a project for the Auditing Standards Board. The project's two principal investigators...

Editor's desk: Five years already?(Editorial)
August 20, 2007... According to those more experienced in such matters, I'm told the proper gift for a fifth anniversary is wood. To mark my five years of wedded bliss, I asked for a new wood driver. My wife, astutely predicting that such a gift would provide an...

Commentary: CPAs I have known - Part 4.(certified public accountant Philip L. Defliese )(Personal account)
August 20, 2007... PHILIP L. DEFLIESE I first met Phil Defliese at a dinner meeting sponsored by the City College Fund. He was good looking with curly dark hair, and as each of us identified himself, Phil said, "I am Philip Defliese of Lybrand, Ross Bros. &...

Congress turns up heat on preparers: Iraq bill boosts accountability on returns.
August 20, 2007... Congress hopes to partially remedy the tax gap by making tax preparers more responsible for the positions their clients take on returns. Because paid preparers prepare over 62 percent of all individual income tax returns, they are a...

In Brief.(United States. Internal Revenue Service is making electronic tax filing easier)(United States. Congress. Senate. Committee on Finance is urging United States. Internal Revenue Service to advertise its Saver's Credit service)(nonprofit organizations are required to submit annual electronic notices)
August 20, 2007... IRS SIMPLIFIES E-SIGNATURES WASHINGTON, D.C. - The Internal Revenue Service said that it plans to simplify the signature process for electronically filed individual tax returns by allowing tax practitioners to avoid the need to send a...

Capital gains planning: 2010 sunset date begins to matter.
August 20, 2007... This coming January officially marks the three-year countdown before the axe falls on the lower individual capital gains rates now in place. Since May 6, 2003, thanks to the Jobs and Growth Tax Relief Reconciliation Act of 2003, gain from...

GASB gets a grip on intangibles: 'A lot of governments did not apply the statement 34 provisions beyond leases. Therefore, the need for a standard became apparent.'.(Governmental Accounting Standards Board )
August 20, 2007... NORWALK, CONN. -- The Governmental Accounting Standards Board has unveiled a new standard on accounting and reporting for intangible assets, clearing up a requirement of Statement 34 that had caused widespread uncertainty in the preparation and...

Change of auditors.
August 20, 2007... NEOPHARM RETAINS BDO SEIDMAN Pharmaceutical concern NeoPharm Inc., a marketer of cancer treatment drugs, has engaged BDO Seidman as its new independent accountant, succeeding Big Four firm KPMG. The Waukegan, Ill.-based company said...

POOP: Not what the world needs, but what it gets: Everything changes, except for GAAP. In fact, much of GAAP is so ancient that we call it 'pitifully old and obsolete principles,' or POOP for short.(generally accepted accounting principles)
August 20, 2007... Two years ago, we criticized the Financial Accounting Standards Board for publishing an exposure draft that proposed doing away with the Rule 203 exceptions that permit, and even encourage, departures from generally accepted accounting...

Executives need financial planning help too!
August 20, 2007... The government is frustrated over seniors' difficulties with the expanded Medicare menu. Evidently, having so many choices has led to confusion, rather than informed decisions. Maybe they should seek advice from corporate executives, who...

In Brief.
August 20, 2007... SEC ADOPTS FRAUD MEASURE The Securities and Exchange Commission voted to adopt a sweeping anti-fraud rule that targets money managers who deliberately mislead investors. The new rule, which was first proposed by the SEC in December,...

Blogging For Dollars: CPA blogs help boost exposure and garner clients.(certified public accountants)
August 20, 2007... Gina Gwozdz realized just how valuable blogging can be when, as a sole practitioner vying for clients with three other CPA firms in the small town of Bullard, Texas, she started looking to expand her reach beyond writing articles and columns in...

IT strategies and tactics.(information technology)
August 20, 2007... Over the past 10 years, technology has become more ubiquitous, as well as more complex. In accounting firms, the definition of technology is now "anything that plugs into the wall" - including telephone systems and copiers/scanners....

In Brief.(NetSuite Inc.'s Initial public offering)(Brief article)
August 20, 2007... NETSUITE FILES IPO REGISTRATION FORM Online business management applications provider NetSuite has filed a Form S-1 registration statement with the Securities and Exchange Commission for its planned initial public offering. NetSuite...

Prospect pipelines: A conduit to growth Process helps firm partners see, understand and act.
August 20, 2007... Like motherhood and apple pie, a pipeline process that helps you organize and realize your opportunities is easy to label "a good thing." But there's a considerable gap between knowing this and making it happen in your own firm. My goal in...

New Products.(briefs)
August 20, 2007... Software & Hardware CONTROLSDOC In response to its own new risk standards, as well as the PCAOB's Auditing Standard No. 5, the American Institute of CPAs has released ControlsDoc, a CD product that streamlines the process of...

People.
August 20, 2007... ALABAMA The Birmingham Business Journal has named David Forrestall, chief information officer and controller of Tidwell DeWitt, one of its Top 40 Under 40. CALIFORNIA Hany Louis has joined KMJ | Corbin & Co., Irvine, as an audit...

Firms.(briefs)
August 20, 2007... CHILE Tax Advisors, Santiago, has joined JHI as the newest member of its Region of the Americas. COLORADO Ehrhardt Keefe Steiner & Hottman PC has opened an office in Boulder, to be headed up by firm principals Hy Harris and Jim...

Coming Events.(Calendar)
August 20, 2007... August 20: NATP Practice Management: Multiplying Your Income, National Association of Tax Professionals. Naperville, Ill. Contact: (800) 558-3402 ext. 3 or www.natptax.com. 20: Investigating Conflicts of Interest, Association of...

In Brief.(Moore Stephens Frost North America Inc. acquired Lynch and Howard)(LaPorte Sehrt Romig and Hand and Gautreau Group are planning to merge)(appointment of Gerald D. Cox at Institute of Internal Auditors )
August 20, 2007... MOORE STEPHENS FROST BUYS NORTH CAROLINA FIRM LITTLE ROCK, ARK. - Arkansas accounting giant Moore Stephens Frost has acquired a North Carolina firm, Lynch and Howard. The acquiring firm is the one of the largest based in Arkansas and...

What makes a great partnership?(Viewpoint essay)
August 20, 2007... After more than 25 years of consulting with large and small accounting firms, I feel comfortable in sharing with you my observations about great partnerships and how they got that way. Most new firms, and some long-time firms, unfortunately...

Advertiser Index.
August 20, 2007... Advertiser Page 1st Global 17 CCH Tax Group 7, 40 GoSystem Tax RS 13 NACVA 4 Rainmaker Academy 11 Sage Software 20-21 State Farm Insurance 9 Thomson Creative Solutions 2 (c) 2007 Accounting...

Editor's Note: More Than Once A Year.
August 20, 2007... As you may already know, it was a banner year for e-filing. The IRS advises that this 2007 tax filing season set a number of electronic records, highlighted by more than 76 million electronically-filed individual tax returns and more than 140...

Observations of the Year.(electronic tax filing)(Viewpoint essay)
August 20, 2007... Clearly, e-filing was a dominant issue and clearly, client reluctance was still apparent. "I like the old fashioned way" and "This gives the government a lot of my financial information" were two comments widely heard. I especially like that...

A Challenging But Highly Successful Tax Season.(CCH Tax Compliance's acquisition of Universal Tax Systems Inc. and ATX Inc.)
August 20, 2007... Tax season 2007 was a challenge, to say the least. Last August, CCH, a Wolters Kluwer business, purchased ATX/Kleinrock, with nearly 45,000 customers in the small CPA and accounting industry. In November, CCH acquired TaxWise, with nearly...

Web Integration Drives Productivity and Control.
August 20, 2007... Over the past 10 years rapid expansion of the Internet has touched every form of business, including the tax and accounting industry. Everyday we are seeing the industry becoming more competitive and the new leaders are seeking greater...

Avoid These Costly Mistakes.
August 20, 2007... Reviewing lessons learned from the past season is a great way to avoid similar "surprises" next year. By taking the time now to go over these issues with your staff, you may be able to avoid them next year. MISSING THE APPLICATION OF THE...

Delivering Service/Enhancing Productivity Tools: The ability to outsource year-end write-up and bookkeeping work frees precious internal resources.(Xpitax LLC)
August 20, 2007... Xpitax LLC, a leader in providing outsourcing services to the accounting industry, has delivered new productivity tools and enhanced its service offerings to help CPA firms better utilize in-house resources and focus on more value-driving work...

Partner for the 2007 Tax Season.(Thomson Corp. Thomson Tax and Accounting)
August 20, 2007... Once again this tax season, practitioners were able to research with confidence and efficiency using Checkpoint(r)-Thomson Tax & Accounting's market-leading online tax research platform. The integration of in-depth primary source information...

Reclaiming Tax Season: We believe our most valuable asset is the people who work for us.(accounting services)
August 20, 2007... Spring tax busy season has ended. What were our successes? What areas of improvement do we target for next year? The conclusion: focus on our people. Middle market firms, including ourselves, have seen significant growth over the past few...

Take the Help Where You Can Get It.(ADP Financial Services's EasyPayNetSM payroll software)
August 20, 2007... Accountants are becoming more and more involved in payroll on behalf of their small business clients. As technology evolves over time, the burdens of payroll administration lessen, allowing more accountants to offer this service as a way to...

Workflow Automation Software Delivers.(XCM Solutions)
August 20, 2007... Now in its fifth version, XCM Solutions' hosted workflow and information automation software offers CPA firms of all sizes powerful tools to manage all of their internal processes and ensure the execution of best practices throughout the firm....

On Target.
August 20, 2007... For the third consecutive year, Orrtax Software Solutions was the first electronic transmitter to deliver IRS Acknowledgements and RAL Checks to customers, kicking off the company's most successful tax filing season ever. Being first on the...

Prepare Now for 2008 Tax Season.
August 20, 2007... Reduce your taxes and build your wealth. That's the key message Gilman Ciocia, a leading provider of tax and financial planning services, is conveying to American taxpayers at the mid-way point of 2007. The company's philosophy is to look...