Category: Acct/Tax TechTips

As I sit in the terminal in Salt Lake City, Utah, I am reminded of a trip I took a few years back with my wife.

I was working with a client, and we chose to spend a few extra days in this wonderfully beautiful part of our country.

The one thing that struck me the most was the deep cultural happiness, politeness and willingness to offer a pleasurable and memorable experience.

Not just the hotel where we stayed, not just the horse farm we saddled up to ride the hills of Utah, not just the restaurants we frequented, not just the Olympic bobsled ride we took at a nail-biting 65 miles and hour, not just the cab ride both to and from the airport, not just the movie theatre we grabbed the latest show, but every single interaction and experience with each aspect of our visit.

I know you might be thinking… the faith of the region promotes this unique culture, but the point I am trying to make is that it was consistent…across the board…everyone on board!  That to me was not just awesome, it was eye-opening.

So how do we then create the same type of consistency within our teams? A level of excellence where everyone is engaged, enthusiastic, committed and confident in their day-to-day execution of your company’s mission.

Well, there’s a good starting point: Does you company actually have a mission, a vision, a set of values that drive your employees forward on a daily basis? Good question!!

The end result or goal that I offer every company I am blessed to work with is something called a “Line of One Culture”—the ability to create a solid and unified force of people and energy, focused on accomplishing the same mission”.

There’s that word again—MISSION.

In order for any company to offer “a perfect product, delivered by caring friendly people, in a timely way”, you must have a mission that everyone can believe in and commit to on a consistent (daily) basis.

So, your mission, if you chose to accept it, is to revisit the over-reaching reason why you open the doors everyday.

Is it to make money? Fine!  Is it to grow world-class, exquisite plants? Great! Is it to keep the family business for one more generation? Perfect!

But the big question…one worth asking yourself everyday Mr. and Mrs. Owner is “Why do I get up everyday to do this?”

I can tell you this–your employees are asking the very same question every single day, and if their answer is “because I have to,” you may not have the consistent workplace for your plants and people to thrive and survive.

If their answer is “because I want to,” than you have the kind of environment that can grow, build and transform your culture, your clients and your future.

Which is your answer—Do I “have” to or do I “want” to?

I am always delighted to create systems within organizations that promote the culture of “want”.

Ones that celebrate successes, ones that support the training needs of the organization, ones that quickly address issues, ones that strive to not do a bunch of stuff “well”, but executes a handful of things better than any other competitor—“great”!

God gave us two hands to make our lives simple.  Let’s not overly complicate things.  We should all create a culture where there are “five things that you manage every day” to a high level of accuracy and commitment, and then there are “five things that you master everyday” without exception, without negotiation! These are your “mission possible” items.

Left hand and right hand—simple!

When you align your team and your company to these 10 objectives, tie them into your mission, feed the employees the top three meals they hunger (Motivation, Communication, Delegation), and do this everyday to a level of consistency that stands heads above the competition, your will have found your “Line of One Culture”

Final Thought:

I would rather be consistently mediocre than inconsistently great. At least I know what I am getting on a consistent basis.  Somewhat sarcastic and snarky, but so very true!

How do you become consistently great is your next big MISSION.

PS:  I have now arrived at my destination in Boise. I am staying at the Hampton Inn—consistently a great brand every single time!!!

We would like to thank John Kennedy for his contribution to our Professionals Blog. To learn more about John Kennedy please click here.

One hallmark of our profession is the notion that we are mind workers. Our stock in trade consists of professional skepticism, rational thought, and the weight of sufficient competent evidentiary material on our analysis. We are a profession of Spocks, not Kirks. (Tech Tips is an unabashed Trekkie, if you hadn’t picked up on that by now.)

So, a query for you, fellow practitioner: Given that we are in the business of thinking rationally, why do we eschew and otherwise look down on the courses in the liberal arts?

I understand that some of you may not do so, but consider this query at the level of the profession, not an individual practitioner. What courses must one have to sit for the CPA, EA, or Bar exams? What courses do employers want to see on transcripts? What does our profession value – in terms of its requirements for entry and continued practice, and do those actual values differ from the values stated in marketing pieces from industry level bodies?

I will tell you that in my entire time as an undergrad accounting major, I did not have much exposure to the liberal arts, other than the bare minimum. (Liberal arts here is defined as academic subjects such as literature, philosophy, mathematics, and social and physical sciences as distinct from professional and technical subjects.)

I graduated with honors, yet I could barely write a paper worth reading, and some might still say that’s the case. Touche.

This is a weakness of our profession. If we make our livings with our minds, if what we offer to the public is our ability to think, then we hurt the profession and the public by not integrating more of the liberal arts into the core accounting educational curriculum.

To that end, we’re going to engage in a crash course of philosophy over the next several posts.

This post will start with a brief history of that august subject.

Philosophy means ‘The study of wisdom or knowledge’.

Einstein, when asked about his taxes, famously quipped, “Taxes? The math is too difficult, it would take a philospher.”

We are that philosopher.

Thousands of years ago, the ancient Greeks, forebears of our society, embarked on what would become the sciences under the umbrella term, philosophy. We use the term philosophy to refer to all the fields of study as they were practiced then. Aristotle, granddaddy of logic, was equally at home in rhetoric, science, math, government, languages, arts, etc, but he wouldn’t have considered himself solely as one practioner of this field or that field – these categories came later.

As knowledge in each respective field advanced, it peeled off to its own ‘sophy’ or ‘ology’. What remained in philosophy as we understand it today is the use of logic and premises to determine if something is true, correct, or valid. Also included in this field are things like epistomology (the study of ‘how we know what we know’), aesthetics, metaphysics, and something of constant concern to us, ethics.

I cheekily referred to Aristotle as the ‘granddaddy of logic’ because of his extensive writings on this subject in his work, “De Interpretatione” which is one of the earliest writings we have that delves into the link between language and logic (https://www.en.wikipedia.org/wiki/De_IInterpretatione).

Later scholars took this work, particularly in chapters 6-7 and set forth a diagram we know today as the ‘Square of Oppositions’. Some of you may be familiar with the premise that ‘All men are mortal. Socrates was a man. Therefore, Socrates was mortal.’ and similar constructs. This is the foundation of logic.

I don’t know about you, but I never learned any of this in college, nor in my CPA exam prep, nor in any professional context in 2 decades of practice. I had to go out and get this knowledge on my own, long, long after my college years. And it’s a shame because we who must use logic to do our jobs properly should be introduced to these concepts during our training.

We once had a junior staff member on our team who made an off-hand comment of derision towards the liberal arts as a waste of time. This person had integrity, a good work ethic, high grades, and looked great on paper, but in the aggregate, did not make for a good accountant. To do what we do, we must go beyond debits and credits. To truly understand what these laws and regulations require of us, we must understand how they are formed. That is the realm of logic.

To understand how to persuade people that it’s in their best interest to comply with these rules, that is the field of rhetoric. To understand what is real and what is fake, that is epistomology. To have any hope of knowing what actions to take in a difficult situation, that is ethics.

It is of course beyond the scope of this blog to make us all experts in each of these fields, or any one particular field, but my hope is to give a brief introduction to each of these topics that can then inspire you to continue your reading and growth on your own – and to invite you to share what you’ve gained with us at our FB group, or at the email below.

Stay safe!

We’d like to hear from you! Please submit your own tech tips to us! We will award a free subscription to The Tax Book to the person who submits the best tip. Please submit your tips to this email address: techtips@msatp.org

Thanks, and catch you next time!

Are you considering selling your practice or downsizing? National Accounting Sales is here to help you with the process. Visit their website for more information.

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Have questions about PPP Loan Forgiveness? Join @Frost Law PPP expert Peter Haukebo right here on MSATP TV live on March 11, 2021 at 10 a.m. to get your questions answered! Comment your questions on our Facebook page, or email info@msatp.org. Don’t forget to tune in for the live presentation!

MSATP Membership Milestones

This year, many MSATP members will be reaching a milestone with their membership! To congratulate and thank our wonderful members for their dedication and continued support, we have created a new page on our website to display their names and the milestone they have reached.

Again, thank you all for your continued support and commitment to MSATP!

Licensee Alert! Fake E-mail Regarding Your License Renewal and Personal Information

We recently learned about an e-mail scam potentially targeting our customers and claiming to have been sent from our agency. As one of our licensees or stakeholders, you may have received this fraudulent e-mail containing the subject line, “Maryland Division of Occupational and Professional Licensing Important Notices.” The e-mail warns of “delay and future problems” in renewing a 2021 license if you do not click a link in the message urging you to “validate your profile.”

This e-mail is a scam.

If you received the e-mail, please delete it immediately and do not click on the link it contains. The Maryland Department of Labor’s Division of Occupational and Professional Licensing will never ask you to provide us with personal information through e-mail, such as your:

• Updated licensee profile data or password
• Social security number or tax identification number
• Bank account or credit card information
• Answers to any ID questions like your mother’s maiden name

Also, we will never direct you to contact a third-party payment processor like Western Union or ask you to download any attachments in order to renew your license or update your record.

For more information, click here.

Things Taxpayers Should Know When Choosing Between Standard and Itemized Deductions

Deductions reduce the amount of taxable income when filing a federal income tax return. In other words, they can reduce the amount of tax someone owes. Most taxpayers have a choice of either taking the standard deduction or itemizing their deductions. The standard deduction may be quicker and easier, but, itemizing deductions may lower taxes more, in some situations. It’s important for all taxpayers to look into which deduction method best fits them.

For more information, click here.

IRS Reminds Farmers and Fishers of March 1 Tax Deadline | IR-2021-42

The IRS is reminding those with income from a farming or fishing business that they can avoid making any estimated tax payments by filing and paying their entire tax due on or before March 1.

This rule generally applies if farming or fishing income was at least two-thirds of the taxpayer’s total gross income in either the current or the preceding tax year. Those who choose not to file by March 1 should have made an estimated tax payment by Jan. 15 to avoid an estimated tax penalty. For more information on estimated tax, refer to Publication 505, Tax Withholding and Estimated Tax.

For more information, click here.

Be On the Lookout For Identity Theft Involving Unemployment Benefits

The IRS urges taxpayers whose identities may have been used by thieves to steal unemployment benefits to file a tax return claiming only the income they actually received.

In 2020, millions of taxpayers were affected by the COVID-19 pandemic through job loss or reduced work hours. Some taxpayers applied for and received unemployment compensation from their state. By law, unemployment benefits are taxable.

For more information, click here.

Additional Sales and Use Tax in Henry County, Virginia | Virginia Tax Bulletin 21-2

Virginia Tax is announcing that effective April 1, 2021, a new 1% additional retail sales and use tax will be levied in Henry County, Virginia. The sales and use tax levied will total 6.3%, comprised of the 4.3% state tax, the 1% percent local option tax and the 1% Henry County additional tax.

To learn more, click here.

All First and Second Economic Impact Payments Issued; Eligible People Can Claim Recovery Rebate Credit| IR-2021-38

WASHINGTON – The IRS announced today that, as required by law, all legally permitted first and second round of Economic Impact Payments have been issued and the IRS now turns its full attention to the 2021 filing season.

For more information, click here.

All Taxpayers Have The Right to Pay No More Than The Correct Amount of Tax| IR-2021-23

When taxpayers complete their tax returns, they may discover they will owe taxes. By law, they have the right to pay no more than the correct amount of tax.

This is one of ten Taxpayer Bill of Rights. These are fundamental rights taxpayers have when dealing with the IRS. One of which is the right to pay no more than the correct amount of tax, including interest and penalties, and to have the IRS apply all tax payments properly.

For more information please click here.

I think I can speak for many when I say Adobe is rather confusing with their product offerings at times. For some services they offer two products whether it is web-based or software installed on your computer such as Adobe Lightroom for our photography lovers, or in this case Adobe Reader DC versus Adobe Reader Pro DC. This article may help you understand the differences and may even shed some light on features you may be missing!

Let’s start with the free version which is listed as Adobe Reader on the Adobe website. This is a free software from Adobe which you can view comment, print and sign PDFs (limited). This is the basic Adobe most folks probably have used since they were introduced to Adobe. This would be similar to Google PDF viewer for those who like the Google suite. It is a great program, but it has it’s limitations, which unless you have ever used the Pro program you might never realize what you are missing out on.

So, let’s look at the pro version. This like most Adobe programs now is subscription based. You will pay monthly for the service ($14.99) and you get a whole host of features. For example have you ever scanned a set of documents and realized after you have pages in the incorrect order? With the pro version you can simply rearrange the documents to your choosing. You even have the ability to sign any document utilizing your adobe signature. One feature I really like in the pro version is the redact feature. In my lifetime I’ve had people who have poor quality scans with blotches or just unsightly things that need fixing. Using the redact feature I can erase those blotches quickly and easily. It is a lot like Photoshop for a document.

I hope this tip helps!

If you have any questions on this or any other professionals blog please reach out to Walter Moore.

In continuing without our post from last week discussing internet bandwidth, this week we will discuss a key component of that, Wi-Fi. We all know what Wi-Fi is or as many people call it wireless internet. Just about every major internet cable provider now sends you a router with it’s own Wi-Fi access built into it so we will skip the basics. We are here to discuss the dangers of Wi-Fi access points and what you can do to secure them.

First off make sure when you receive your router set it to require a password with at least 8 characters. Make sure that it is something more than your name, address or something anyone outside your home can easily figure out but you yourself can remember. Also, turn off any secondary unsecured network to prevent any tampering from someone outside your house. If you need an extender, see if the provider sells their own. While they are usually a little more in cost, they will not have any backdoor software installed versus the no name products you will find on Amazon. I have seen those have access to places as far away as China where scammers are looking to gain access to sensitive data on your network.

If you find yourself out and about utilizing public Wi-Fi be sure to use a VPN. Some places that offer free Wi-Fi can be compromised. This means a hacker has created a way to position himself or herself in between you and the connection with access to all your data. They can also distribute malware using this means to harm your computer or gather data. In these situations never allow sharing to other computers on the network, and be sure to turn off any auto connect features as well.

I hope these simple tips help and please stay safe.

The cloud has been billowing in our skies for the better part of a decade now. Visions of bank feeds and seemless integrations have beckoned us to journey towards the mythical land of Paperless Office, just outside of the famed Shangra-La and not too far from Atlantis.

Leaving the sarcasm aside, the bank feeds and their attendant bank rules have been one of the most compelling features of the cloud accounting apps. And yes, QuickBooks Desktop, that venerable software that we love and our clients hate, did have a primative version of bank feeds for years, but now, in the cloud, the workflow makes the work flow, better.

Having a bank feed means books can be updated each day, providing small businesses with an actual shot of having some semblance of internal control, let alone timely financial statements.

The technology is great.

When it works.

As with most things technological, when it breaks down, people tend to blame the thing itself, and sometimes the practitioner who recommended (if that happens to you, time to get a new client – just sayin’).

The heart of the matter though is that it isn’t the general ledger software, or the 3rd party data aggregator. The real villain(s) here are the banks. Because of course they are.

Having been thoroughly in the cloud for coming up on 5 years, I’ve had experience with how several banks handle the cloud and feeds with QBO and Xero. Banks such as Wells Fargo, Capital One, and soon, Bank of America, have direct feed relationships with Xero. Other banks such as PNC, M&T, BB&T have an intermediary, usually a company called, “Yodlee” (no, that’s not a joke, it’s actually a long established player in this space.) wherein the 3rd party will login to the bank, ‘scrape’ the transactional data and feed that into Xero, or QBO.

QBO has more direct feed relationships than Xero, but that is changing, and it really doesn’t matter.

The issue is that each bank has their own standards and procedures for how they handle bank feeds, and they periodically change those standards. When those standards change, the feeds break. Most times, it’s easy enough to re-establish them, but not always.

In July of 2019, BB&T, M&T, Bank of America, PNC, and Capital One all decided to reset their security policies at roughly the same time. Let me tell you how fun it was to manage my inbox and phone that day. (It wasn’t. It really wasn’t.) By the end of the following day, most of the feeds had been reset, except for PNC which really is averse to having anyone (or any app) sync in for their data, and Capital One which has great marketing, but not the greatest U/X.

The point of all this is that our job, as accountants, is to ensure the smooth running of our nation’s commerce. It’s in our code of conduct, our charge to the public. The future of our profession is using cloud based ledgers and bank feeds to secure the entire chain of a transaction from inception to reconciliation.

To that end, it’s time to have some entity, perhaps NIST, put forth a security protocol for all the banks, software providers, and other participants to adopt. It’s no longer a mere annoyance to deal with each bank’s approach to these feeds, it’s a threat to our nation’s commerce.

We’ll close with this whopper of a logic bomb:
A couple months ago, a client who has been with ‘Goliath National Bank’ and quite unhappy with said bank’s service, went shopping for other banks. They looked at Hyper Local Bank who proceeded to sing a smooth song of enticement. When asked about bank feeds, they said, “We value our clients’ security, therefore we don’t have bank feeds, our clients manually reconcile their accounts each morning.”

My reply to said client went like this, “Hyper Local Bank doesn’t offer bank feeds because they value your security. Goliath National Bank does offer bank feeds because they ‘don’t’ value your security? Does that argument really make sense? Further, you clear 1,000 transactions each month. Do you really want to pay me to process that much volume, manually, or would you prefer to let the robots do what they were designed to do?”

Ultimately that hyper local bank was bought out by a larger bank that did offer feeds…

Bank feeds are the future and this toothpaste is not going back into the tube.

It’s time for a national standard.

We’d like to hear from you! Please submit your own tech tips to us! We will award a free subscription to The Tax Book to the person who submits the best tip. Please submit your tips to this email address: techtips@msatp.org

Thanks, and catch you next time!