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The Natural State of Accounting Issue 6/June 2021 2021 Annual Technology Conference, June 24-25 Get Connected with ARCPA Connect 2021 Annual Members Meeting & CPE Arkansas Society of Certified Public Accountants 1 June 2021
ARCPA STAFF MARSHA MOFFITT Executive Director/CEO ZHENGYU LI Director of Finance STEPHANIE TANNER Director of Education ROBIN HARRIS Director of Communications & Public Relations WHITNEY MAYO Director of Membership & Marketing CRYSTAL MCKEE Education Assistant GET PUBLISHED ARCPA OFFICERS JOSEPH M. RUGGER Chair If you are interested in submitting a column GINA R. MORAN Chair-Elect or feature to ROCKY W. GOODMAN Vice Chair The Natural State MIRANDA J. JOHN Secretary of Accounting monthly newsletter, PAUL S. OSBORN Treasurer please submit to STATEWIDE DIRECTORS membership@arcpa.org. DONNA E. BURNETT J. MICHAEL TUOHEY MARIE GIERINGER ANDREW ALMAND ROBERT R. REDFERN NATHAN M. NAILLING The Natural State of Accounting is published monthly by ROBERT CHRISTIANSEN JOSEPH A. WHEELER the Arkansas Society of CPAs for its members. Views and PAULA M. KINNARD opinions appearing in this publication are not necessarily the views of the ARCPA. The products and services advertised in the Natural State of Accounting have not been reviewed or endorsed by the ARCPA, its board of directors, or staff. 11300 Executive Center Dr. Photo & Media Disclaimer - By attending any ARCPA event, Little Rock, AR 72211-4352 participants understand that they may be photographed or videotaped and grant the Arkansas Society of CPAs 501.664.8739, AR Toll free 800.482.8739 permission to use them in a photograph, video, or other arcpa.org digital media. This includes any and all of its publications, including, but not limited to: social media, web-based publications, or email marketing. Should a registrant decide they do not wish to be photographed or recorded during an event, they will make their wishes known to ARCPA staff prior to the event. Arkansas Society of Certified Public Accountants 2 June 2021
CONTENTS CONFERENCES & EVENTS 5 2021 Conference Schedule 9 What Now? Technology in A Post-Pandemic Environment 12 ARCPA Conference Group Pricing 14 18th Annual Accounting Educators Conference Wrap Up LEGISLATIVE 17 A Look Back at the 2021 Arkansas Legislative Session 18 An Update on the ARCPA PAC MEMBER NEWS 20 May 2021 ARCPA Board Meeting Wrap Up 21 Welcome New Society Members 25 Student Education Fund Scholarship Recipients 28 Include Your Firm in the 2021-22 Guide to Public Accounting 29 ARCPA Member Spotlight 33 CLASSIFIEDS ANNUAL MEMBERS MEETING and FREE 1-Hour CPE Thursday, August 26, 2021, 12:00 Noon (Members Only) 12:00 p.m. – Recognition of 2020 Award Winners 12:15 p.m. – Membership Approval of Bylaws Revision and 2022 Slate of Officers and Directors 12:30 p.m. – 1:30 p.m. – Top Regulatory Items Facing Businesses. Are Your Clients Prepared? Course description: With continued impacts of the COVID-19 pandemic, as well as the priorities of a new administration, businesses today face more regulatory demands than ever before. In response, accountants are seeking to increase their client engagement regarding important legislation, creating more strategic, consultative opportunities. Join this session to learn about the top regulatory items that are impacting businesses. Ensuring that your clients address these areas wisely further strengthens and expands your advisory role. Objectives: Highlight the latest federal payroll tax-related regulatory developments and trends. Identify the top federal legislation related to healthcare policy, employment law, and more. Review resources and consultative opportunities. Sponsored By REGISTER TODAY *Membership vote by regular society CPA members only Arkansas Society of Certified Public Accountants 3 June 2021
ORDER YOUR ARCPA BACKPACK TODAY! $80 Show your support of ARCPA with a new backpack! This TSA-friendly 17” computer backpack allows you to keep your laptop inside the pack and fully protected, with a mesh computer viewing window that keeps your computer in full view without having to remove it during TSA security checks. Multiple, large-capacity, organizer storage compartments keep everything organized and easy to find. Limited Quantity Available Order your backpack today by emailing Marsha Moffitt at mmoffitt@arcpa.org. Arkansas Society of Certified Public Accountants 4 June 2021
CONFERENCES AND EVENTS ARCPA 2021 Conferences & CPE Events Technology ! Accounting Auditing Accounting & Auditing Conference Conference June 24-25, 2021 May 12-13, 2021 Virtual Event Virtual Event CPE Hours: 16 CPE Hours: 16 Register Now Register Now Member Fees: Non-member Fees: $460 Early Fee $660 Early Fee Member Fees: Non-member Fees: $490 Standard Fee $690 Standard $275 Early Fee $375 Early Fee Fee $305 Standard Fee $405 Standard Fee (early fee expires 06/10/21) (early fee expires 7/13/21) Governmental Accounting Industry, Commerce & Banking Conference Conference August 31, 2021 September 23-24, 2021 Virtual Event Virtual Event CPE Hours: 8 CPE Hours: 16 Register Now Register Now Member Fees: Non-member Fees: Member Fees: Non-member Fees: $225 Early Fee $325 Early Fee $275 Early Fee $375 Early Fee $255 Standard Fee $355 Standard Fee $305 Standard Fee $405 Standard Fee (early fee expires 8/17/21) (early fee expires 9/09/21) Two-Day Federal Tax Update: Individuals, Corporations & Partnerships October 28-29, 2021 Virtual Event CPE Hours: 16 Register Now Member Fees: Non-member Fees: $420 Early Fee $520 Early Fee $450 Standard Fee $550 Standard Fee (early fee expires 10/14/21) Arkansas Society of Certified Public Accountants 5 June 2021
CONFERENCES AND EVENTS ARCPA 2021 Conferences & CPE Events Arkansas Federal EQUIP Tax Institute Conference November 4-5, 2021 November 10, 2021 Virtual Event Virtual Event CPE Hours: 16 CPE Hours: 4 Register Now Register Now Member Fees: Non-member Fees: $220 Early Fee $320 Early Fee $250 Standard Fee $350 Standard Fee Registration Fee: $50 (early fee expires 10/21/21) Fraud Agriculture Conference Conference November 11, 2021 November 17, 2021 Virtual Event Virtual Event CPE Hours: 8 CPE Hours: 8 Register Now Register Now Member Fees: Non-member Fees: Member Fees: Non-member Fees: $250 Early Fee $350 Early Fee $225 Early Fee $325 Early Fee $280 Standard Fee $380 Standard Fee $2 55 Standard Fee $355 Standard Fee (early fee expires 11/03/21) (early fee expires 10/28/21) Arkansas Society of Certified Public Accountants 6 June 2021
June-July Seminars CONFERENCES AND EVENTS Date Course Title Field CPE Hours Location Early Bird Fee Standard (Acronym) of Study Fee JUNE June 09 Forensic Accounting: Fraud Investigations (FAFI) AA 8 VIRTUAL-ONLY Member $245** Member $275** Non-member $345** Non-member $375** 09 Nonprofit Industry Update and GAAP Refresher (NIU) AA/GOV 8 VIRTUAL-ONLY Member $245 Member $275 Non-member $345 Non-member $375 10 Audits of Defined Contribution Pension Plans (ADC) AA 8 VIRTUAL-ONLY Member $245 Member $275 Non-member $345 Non-member $375 14 Surgent’s S Corporation, Partnership, and LLC Tax Update TX 4 VIRTUAL-ONLY Member $165 Member $175 (8:30am-12:00pm) (BCP4) Non-member $215 Non-member $225 14 Surgent’s Individual Income Tax Update TX 4 VIRTUAL-ONLY Member $165 Member $175 (1:00pm-4:30pm) (BIT4) Non-member $215 Non-member $225 15 Financial Reporting for Not-for-Profit Entities AA 4 VIRTUAL-ONLY Member $165 Member $175 (8:30am-12:00pm) (CL4NFPF) Non-member $215 Non-member $225 15 Governmental and NFP Accounting and Auditing AA/GOV 4 VIRTUAL-ONLY Member $165 Member $175 (1:00pm-4:30pm) (CL4GNP) Non-member $215 Non-member $225 17 Yellowbook: Application of GAGAS Principles AA/GOV 4 VIRTUAL-ONLY Member $165 Member $175 (8:30am-12:00pm) (CL4YBAP) Non-member $215 Non-member $225 21 Accounting for Expenses in a NFP AA 2 VIRTUAL-ONLY Member $100 Member $110 (8:30am-10:10am) (CL2EXP) Non-member $125 Non-member $135 21 FASB Activities Impact on NFP Financial Reporting AA 2 VIRTUAL-ONLY Member $100 Member $110 (10:30am-12:10pm) (CL2FACT) Non-member $125 Non-member $135 22 Lease Accounting: The Impact of Changing Standards on Both AA 2 VIRTUAL-ONLY Member $100 Member $110 Lessors and Lessees (8:30am-10:10am) (AALL) Non-member $125 Non-member $135 22 Going Concern Accounting and Reporting Considerations AA 2 VIRTUAL-ONLY Member $100 Member $110 In the COVID-19 Environment (10:30am-12:10pm) (AGC2) Non-member $125 Non-member $135 22 Ethical Considerations for CPAs ET 4 VIRTUAL-ONLY Member $165 Member $175 (1:00pm-4:30pm) (ETH4) Non-member $215 Non-member $225 JULY 8 Revenue Recognition: Identifying the Contract and AA 2 VIRTUAL-ONLY Member $100 Member $110 Performance Obligations (8:30am-10:10am) (CL2CPO) Non-member $125 Non-member $135st 8 Revenue Recognition: Determining and Allocating the AA 2 VIRTUAL-ONLY Member $100 Member $110 Transaction Price (10:30am-12:10pm) (CL2TRP) Non-member $125 Non-member $135s 20 Applying the Uniform Guidance in Your Single Audits AA/GOV 8 VIRTUAL-ONLY Member $245** Member $275** (INUG) Non-member $345** Non-member $375** 21 Annual Update and Practice Issues for Preparation, AA 8 VIRTUAL-ONLY Member $245** Member $275** Compilation, and Review Engagements (CORU) Non-member $345** Non-member $375** Arkansas Society of Certified Public Accountants 7 June 2021
July-September Seminars CONFERENCES AND EVENTS Date Course Title Field CPE Hours Location Early Bird Fee Standard (Acronym) of Study Fee JULY (CONTINUED) 27 Reviewing S Corporation Tax Returns: What Are You Missing? TX 4 VIRTUAL-ONLY Member $165 Member $175 (8:30am-12:00pm) (CL4STRM) Non-member $215 Non-member $225 27 Reviewing Partnership Tax Returns: What Are You Missing? TX 4 VIRTUAL-ONLY Member $165 Member $175 (1:00pm-4:30pm) (CL4PTRM) Non-member $215 Non-member $225 28 Social Security and Medicare: Maximizing Retirement TX 4 VIRTUAL-ONLY Member $165 Member $175 Benefits (8:30am-12:00pm) (CL4SSM) Non-member $215 Non-member $225 28 Reviewing Individual Tax Returns: What Are You Missing? TX 4 VIRTUAL-ONLY Member $165 Member $175 (1:00pm-4:30pm) (CL4ITRM) Non-member $215 Non-member $225 29 Real Estate Taxation (TSE.TRE) TX 8 VIRTUAL-ONLY Member $245** Member $275** Non-member $345** Non-member $375** AUGUST 11 Controller’s Update: Today’s Latest Trends OT 4 VIRTUAL-ONLY Member $165 Member $175 (8:30am-12:00pm) (CL4SKSB) Non-member $215 Non-member $225 11 Change the Way You Work: Success as a Virtual CFO OT 4 VIRTUAL-ONLY Member $165 Member $175 (1:00pm-4:30pm) (CL4VCCO) Non-member $215 Non-member $225 AUGUST 17 Accounting and Auditing Update for Small Businesses AA 8 VIRTUAL-ONLY Member $245** Member $275** (SMBZ) Non-member $345** Non-member $375** 18 Enterprise Risk Management: New Approaches for OT 8 VIRTUAL-ONLY Member $245** Member $275** Today’s Complexities (RMGT) Non-member $345** Non-member $375** 25 Forecasting for Improved Profits, Working Capital, and OT 4 VIRTUAL-ONLY Member $165 Member $175 Decision Analysis (8:30am-12:00pm) (CL4FFMD) Non-member $215 Non-member $225 25 Risk, Cost, and Cash Management for Controllers and OT 4 VIRTUAL-ONLY Member $165 Member $175 Financial Managers (1:00pm-4:30pm) (CL4TKBP) Non-member $215 Non-member $225 SEPTEMBER 30 Advanced Controller and CFO Skills (ACCS) OT 8 VIRTUAL-ONLY Member $245** Member $275** Non-member $345** Non-member $375** COURSE INFORMATION All courses begin at 8:30 a.m. and end at 4:30 p.m. unless otherwise noted ** AICPA members may deduct $30 from AICPA courses (4 hour courses N/A). Arkansas Society of Certified Public Accountants 8 June 2021
What Now? Technology In A Post-Pandemic Environment Thomas G. Stephens, Jr., CPA, CITP, CGMA Business leaders across the globe are now focusing on rejuvenating their businesses in a post-pandemic environment. No doubt, the past eighteen months have been challenging for everyone. But now, as organizations seek to regroup and recover, managers must consider carefully the state of their organizations’ technology and what adjustments and investments they should make to maximize their organization’s chances to succeed. This article examines several critical technologies that leaders should have near the top of their lists. Remote Work Environments Demand Better Planning OK, let’s face it. In March of 2020, we got pushed into a world few could have imagined. In a single week, managers told millions to pack their desks, go home, and figure out how to work remotely with, in many cases, little, if any, assistance from the IT department. Although challenges and failures materialized, most workers innovated and found creative solutions to their challenges. Now, with many workers choosing to work remotely on at least an occasional basis, it is time to assess the state of these environments and see what we can and should do better. These issues certainly include technology. Do our team members have optimal bandwidth to connect and communicate? Have we adequately secured team members’ internet connections? Should we equip our remote workers with additional peripheral devices, such as scanners? But these types of questions are just the tip of the iceberg when implementing remote work strategies for the long haul. For example, have we addressed issues such as ergonomics in the home office? Keep in mind that workers’ compensation issues still exist, even when team members work from home. Therefore, employers generally must provide a safe workspace, even if that workspace is remote. Similarly, have we addressed potential overtime issues and conflicts in remote work situations involving non-exempt team members? If non-exempt team members work more than eight hours a day or forty hours a week, generally, employers must pay overtime wages. Therefore, appropriate scheduling and monitoring tools should be in place. Collaboration Tools Are Essential No doubt, the popularity of collaboration tools such as Microsoft Teams, Slack, Zoho Connect, and Google Workspace make it easy for team members to communicate and share documents. The usage of these platforms exploded almost overnight with the pandemic’s – Microsoft, for example, experienced an 894% increase in Teams usage from March through June 2020. Now that team members are accustomed to these platforms, it’s time to leverage them for better productivity while simultaneously striking an appropriate balance over data control. For example, we should ensure that team members know how to take advantage of multi- user, simultaneous to standard document types such as Excel, Word, and PowerPoint. Additionally, we need to safeguard against storing redundant copies of data files in our collaboration platforms. When used properly, these tools elevate productivity, but they can become a managerial nightmare when used haphazardly. Security Issues Continue To Proliferate A notable trend observed during the pandemic was the explosion of phishing attacks. Many security professionals believe that these attacks grew because of perpetrators seeking to exploit less-secure home networks. Most of these same professionals agree that security attacks will continue to haunt organizations of all sizes and types for the foreseeable future. Accordingly, security needs to remain a top-of-mind consideration in all organizations. Examples of critical security measures you should consider implementing include: • Utilizing password management tools; • Implementing Zero Trust Security Models; • Ensuring ongoing updates to operating systems and applications; • Encrypting data at every opportunity; • Backing up data on an ongoing basis and regularly testing your backups; • Maintaining physical control of all devices; and • Using Mobile Device Management software. Arkansas Society of Certified Public Accountants 9 June 2021
Consider Implementing Innovative Tools Of course, innovation provides an ever-expanding list of technology tools to improve productivity and efficiency. Some of these are tools found in everyday applications, such as Excel. For example, Excel’s Power Query feature provides extraordinary capabilities for linking data into Excel and creating transformations to clean up the data and make it more useful. Yet, very few Excel users take advantage of this feature. Similar productivity-boosting features frequently appear in other applications we use on an everyday basis. Beyond new features in familiar applications, we should consider the potential positive impact of newer technologies. For example, where do you and your organization stand with automating workflows and approval processes? Did you know you can do precisely that by taking advantage of Power Automate, a solution already available in many Microsoft 365/Office 365 subscriptions? With Power Automate, you can create a custom workflow and approval process that facilitates automating approval processes. Likewise, have you considered the ever-growing list of third-party applications that can enhance your accounting solution? From eCommerce integration to document management to enhanced financial reporting, third-party solutions are available for virtually every accounting application and service in use today. These tools provide functions and features not otherwise available in your accounting application and eliminate rote, manual processes often implemented as stop-gap measures. Accordingly, they can have a tremendous positive impact on productivity. Training Is More Critical Than Ever Of course, none of the technologies mentioned above will provide the promised benefits if team members do not know how to use them effectively. More than ever, training is a crucial driver for all types of businesses to achieve their goals in a post-pandemic environment. A significant component of your post-pandemic planning should be devoted to ensuring that team members can access the learning options they need to work effectively in a post-pandemic workplace. Team members might choose to participate in formal training sessions – web-based or in-person – or they may take advantage of informal “lunch-and-learn” environments. Likely, many will participate in both types of delivery methods. When arranging for training options, one critical consideration is not to assume that team members are as fluent with common applications – Excel and Adobe Acrobat, for example – as many believe. Many team members continue to rely on “brute force” methods when working in these applications, even though newer features can allow them to work more efficiently, accurately, and securely. Summary No doubt, post-pandemic work environments will be different from those of the past, just as our work environments changed dramatically after the widescale introduction of the personal computer. Some of these changes will be cultural in nature – social distancing, as an illustration – but many will be technological. For example, remote work environments, collaboration tools, addressing security risks, and taking advantage of new breeds of innovative tools all capitalize on the ever-improving world of technology. When you couple these types of tools – and others sure to emerge – with appropriate training, you are indeed setting the stage for organizational success in post-pandemic environments. Best of luck as you plan for success in a post-pandemic environment! Tommy is one of the shareholders of K2 Enterprises. At K2, Tommy focuses on creating and deliveringcontent and is responsible for many Firm management and marketing functions. You may reach him at tommy@k2e. com, and you may learn more about K2 Enterprises at www.k2e.com. Register here for the 2021 Annual Technology Conference! Conference, to be held Virtually, June 24-25th, 2021. Arkansas Society of Certified Public Accountants 10 June 2021
Valuable member benefit Members across the state may reach out to each other through ARCPA Connect. ARCPA Connect is a members only exclusive online community forum that is accessible on a desktop and all digital devices. This is a place where ARCPA members may exchange information, ask questions, share ideas and best practices. Log In Access ARCPA Connect through the link on ARCPA website at www.arcpa.org. Or go to connect.arcpa.org. Your login is the same as your member login for the ARCPA website, so there is no need to establish a different username or password. In Connect, you may engage in the Member Forum which is available to all members and find access to other committee groups which you may belong. Adjust your preferences for receiving notifications at any time. Get Connected Join discussions posted by others or start a new discussion topic of your own in the forums. Post links to useful websites or helpful sources in your discussion or on the links tab within the group. Sharing information is easy within the community. Get Active Visit the online community often to checkout new discussions or to initiate a discussion thread with a question, comment or beneficial resource. Your participation will help build an invaluable source of information for members. Arkansas Society of Certified Public Accountants 11 June 2021
CONFERENCES AND EVENTS ARCPA CONFERENCE GROUP PRICING Have multiple people from your firm/company wanting to attend the same conference? Register three or more people from the same firm/ company for the same conference and receive a Group Pricing Terms & Conditions: group discount! To take advantage of the ARCPA’s Conference Group Pricing just fax, mail, or email • To receive the group discount, all individuals must be your registration form with the list of attendees. registering for the same conference. Questions? Please contact Stephanie Tanner at 501- • Payment is required with registration to receive the 664-8739 or stanner@arcpa.org. group discount. The following discount is applied when three or • Group discount is only valid for ARCPA Conferences. • Only ARCPA members may qualify for the group more people from the same firm/company discount. register for the same conference: • Non-members may apply for membership to receive Technology Conference: $50 off / person the group discount. Accounting & Auditing Conference: $25 off / person • All individuals must be listed at the time of Governmental Accounting $15 off / person registration. Industry, Commerce & Banking Conference: $25 off / person • Programs excluded: Educators’ Conference Two-Day Federal Tax Update: $50 off / person Tax Institute: $25 off / person EQUIP Conference: $10 off / person Fraud Conference: $25 off / person Agriculture Conference $15 off / person Arkansas Society of Certified Public Accountants 12 June 2021
Group Pricing Registration Conference Name ______________________________________________________________________________________________________ Firm Name _____________________________________________________________________________________________________________ Address ________________________________________________________________________________________________________________ City ____________________________________________________________________ State ______________Zip _______________________ Phone _____________________________ Fax ________________________________ Email*_________________________________________ *Payment receipt will be sent to this valid email address Employee Information: Group Name Email Address Fee Discount 1. _______________________________________________ ______________________________ _______________ - _______________ 2. ______________________________________________ ______________________________ _______________ _______________ 3. ______________________________________________ ______________________________ _______________ _______________ 4. ______________________________________________ ______________________________ _______________ _______________ 5. ______________________________________________ ______________________________ _______________ _______________ 6. ______________________________________________ ______________________________ _______________ _______________ 7. ______________________________________________ ______________________________ _______________ _______________ 8. ______________________________________________ ______________________________ _______________ _______________ 9. ______________________________________________ ______________________________ _______________ _______________ 10. ______________________________________________ ______________________________ _______________ _______________ Subtotals ________________ ________________ The Early Bird Price applies only when registering at least 14 days prior to the course or conference. Total Amount Enclosed ________________ Group Pricing Terms & Conditions: • To receive the group discount, all individuals must be registering for the same conference. • Payment is required with registration to receive the group discount. • Group discount is only valid for ARCPA Conferences. • Only ARCPA members may qualify for the group discount. Non-members may apply for membership to receive the group discount. • All individuals must be listed at the time of registration. • Programs excluded: End of Busy Season CPE & Fish Fry, Educators’ Conference Cancellation Policy: Full refund, less a $10 service charge will be made if notice of cancellation is received at least 60 days prior to the course or conference date. Full refund, less a $25.00 service charge will be made if notice of cancellation is received between 10 and 60 days prior to the course or conference date. NO REFUND WILL BE MADE IF NOTICE OF CANCELLATION IS RECEIVED LESS THAN 10 DAYS PRIOR TO THE COURSE OR CONFERENCE DATE. Registration with Payment by mail: ARCPA, 11300 Executive Center Drive, Little Rock, AR 72211-4352 Registration with Credit Card payment: FAX: (501)664-8320 PHONE: (501)664-8739 or q Master Card q Visa q American Express WEB SITE: www.arcpa.org (800)482-8739 in Arkansas Card # __________________________________________________________________________Expiration Date ____________________________ Signature _____________________________________________________________________________________________________________________ Arkansas Society of Certified Public Accountants 13 June 2021
18th Annual Accounting Educators Conference Wrap Up Arkansas Society of CPAs 18th Annual Accounting Educators Conference was held Wednesday, May 12, 2021. Over forty accounting educators from various two and four-year colleges and universities attended this virtual event. The conference offered an opportunity for accounting educators to hear discussions on current issues, trends, and teaching strategies and share ideas and concerns. This year’s Andrew Almand, Henderson State University conference agenda featured individual presentations and Kriste Flowers, UA Pine Bluff a group discussion session. The event also included a Margaret Hoskins, Henderson State University demonstration of Tableau, a data visualization software, Jody Nations, Southern Arkansas University and a session for educators to meet firm representatives Ashley Phillips, University of Central Arkansas Rebecca Phillips, UA Monticello and hear about future hiring needs and how students can Lyle Rupert, Hendrix College prepare for the workforce. The event offered attendees JaLynn Thomas, University of Arkansas up to 7 CPE credit hours, including 1 hour of Ethics and 1 Charles Wu, University of Central Arkansas hour of Arkansas Ethics. Any accounting educator at a college or university in the state, who would like to assist, please email Robin Harris rharris@arcpa.org to be included on the planning task force for next year’s event. Free 1 Hour of CPE – for ARCPA Members June 23, 2021 at Noon Matt Boch Jonathon Dismang New Arkansas Tax Legislation & What It Means for Your Clients Join Matt Boch, an Arkansas tax attorney with Dover Dixon Horne PLLC, and Senator Jonathon Dismang, a leading legislator with a background in public accounting, as they discuss new Arkansas tax legislation passed by the 93rd General Assembly. Matt and Senator Dismang will cover everything you need to know about these new laws and how they will affect you and your clients. Register for this FREE event on www.arcpa.org Arkansas Society of Certified Public Accountants 14 June 2021
Ways to Save on CPE Save $30: Early Bird Save $30: AICPA Save up to $200: Discount Member Discount ARCPA Member Discount Register early and save! Are you an AICPA Member? ARCPA Members save big To qualify for the Early Bird You can save $30 on all on CPE! Members can save discount, your registration eight-hour AICPA courses! $50 on four-hour CPE, $100 (with payment) must be Look for the notation ** on on eight-hour CPE, and eligible courses. $200 on sixteen-hour CPE. received by the ARCPA 14 days prior to the program. Arkansas Society of Certified Public Accountants 15 June 2021
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LEGISLATIVE A Look Back at the 2021 Arkansas Legislative Session Through the efforts of ARCPA Lobbyist Rodney Baker, Act 593 formerly HB1705 is a technical companion bill. Attorney Matt Boch, members of ARCPA’s Legislative The bill was a State Chamber/AIA Priority bill and was and Taxation Committees, members of the ARCPA supported by ARCPA. leadership, and other society members, the 2021 legislative session was a success, passing several key Act 629 formerly SB420 by Sen. Dismang to amend tax bills. Below is a wrap-up of bills that have been the law concerning extensions of time to file income tax signed into law. returns; and to extend the extended deadline for filing a state income tax return by 30 days. Supported by the Act 248 formerly HB1361 by Rep. Eaves and Sen. State Chamber and ARCPA. Dismang adopts federal statutes for the purpose of computing Arkansas income tax liability from the Act 628 formerly SB481, PUBLIC ROADS Paycheck Protection Program, loan forgiveness, and IMPROVEMENT TAX CREDIT by Sen. Dismang would emergency grants. It excludes payments received allow 100 percent of the public roads improvements tax under the Coronavirus Food Assistance Program credit to be taken in a single year, instead of limiting it (CFAP). It sets the effective date of tax years beginning to 50 percent. It would extend the carry-forward period on or after January 1, 2019. for the credit from 3 to 10 years. The effective date would be January 1, 2020. Act 153 formerly HB1212 by Rep. Jack Ladyman and Sen. Missy Irvin is a State Chamber/AIA Priority Act 776 formerly SB528 by Sen. Sample would require Agenda item that will help employers by reducing the Department of Finance and Administration to the impact of layoffs due to COVID-19 on their provide reports to counties and cities containing data unemployment insurance taxes. The Act allows benefits on sales tax rebates and credits awarded for local sales paid for unemployment to be noncharged to the and use tax rebates, and for purchased property used separate account of each employer in the base period if in construction contracts. It would require the reports they are a result of a declared disaster emergency. The to be delivered electronically on a monthly basis and to impact has a retroactive effective date of April 4, 2020. include the name of the taxpayer and the amount of the credit or rebate awarded. The effective date would be Act 154 formerly SB236 by Sen. Dismang and January 1, 2022. Rep. Jett exempts from income tax 2020 and 2021 unemployment compensation benefits paid from federal Act 725 formerly SB153 by Sen. Gilmore would create unemployment funds or from Title IV of the Social the Workforce Expansion Act of 2021. It waives the Security Act. initial licensing fee for individuals who are seeking to receive a license in this state if the applicant Act 143 formerly HB1031 by Rep. Jett requires the has a household income that does not exceed two electronic filing of a state income tax return by a tax hundred percent (200%) of the federal poverty income practitioner if the practitioner files the federal income guidelines. A license is defined as: “…a license, tax return electronically. certificate, registration, permit, or other form of authorization required by law or rule that is required for Act 362 formerly HB1209 by Rep. Joe Jett will help an individual to engage in a particular occupation or about 40,000 Arkansas businesses reduce their profession”. The bill was amended to exempt fees for a federal taxes by an estimated $50 million or more criminal background check; an examination or test; or while generating $4 million in state revenue. HB1209 medical or drug test. was a State Chamber/AIA priority agenda bill and was strongly supported by ARCPA. Act 880 formerly HB 1596 by Rep. Jett to allow the sales and use tax exemption for sales for resale to Act 586 formerly HB1468 by Rep. Joe Jett and Sen. apply to items sold for use in printing; and to amend Jonathan Dismang seeks to create an Independent Tax the Sales and Use Tax exemption for certain machinery Appeals Commission. HB 1468 was a State Chamber/ and equipment. HB1596 seeks to expand the existing AIA priority agenda bill and was strongly supported sales and use tax manufacturing exemptions definition. by ARCPA. Arkansas Society of Certified Public Accountants 17 June 2021
LEGISLATIVE An Update on the ARCPA PAC Richard Bell, Managing Partner, Bell & Company PA Mike Carroll, CPA and government branches before laws and policies are so former Managing Partner of enacted. HB 1209, The Arkansas Pass-Through Entity Beall Barclay & Company Tax Act, now Arkansas Act 362, was a call-to-arms by CPAs PLLC in Fort Smith, the ARCPA, led by ARCPA’s Executive Director, Marsha now Landmark PLC CPAs, Moffitt, and ARCPA members and CPAs, Charlott best described our Baby Jones, Randy Milligan, Gary Cooper, respective Boomer generation of CPAs CPA members of the Legislative, Taxation, and PAC with the following comment, committees, and the entire ARCPA membership, which while working diligently with became a juggernaut of advocacy in contacting state myself and a host of other legislators in the House and Senate on the merits of ARCPA members in passing this bill. HB1209, the Elective Pass-Through Entity Tax Act, and in my own words I quote him, “During our professional The House sponsor of the Bill, Representative Joe careers, we did a good job of working with our clients Jett, asked me, while attending a House Revenue to implement policy on tax and attestation laws and and Taxation Committee meeting, where I spoke in regulations once they were legislatively passed and favor of the bill’s passage, “like what has happened to became law. the ARCPA membership?! I have never received so many phone calls, emails, and texts in support of a “However, we were not on the forefront of making Bill from the CPA community!” I explained to him that the policy, by participating in the legislative-making perhaps this was the beginning of the future, where process. We did not serve in the legislature or in local CPAs, through the ARCPA Legislative, Taxation, and political offices or serve on policy-making committees at PAC Committees, could participate in assisting our the local, state, or federal level.” legislators to understand the technical aspects of certain tax and other related business Bills that would I would add to Mike’s comment and make further help and assist to grow Arkansas businesses and our observation that we did not have or take the time state economy. With that being said, the call-to-action to serve, as we spent our days working long hours, gauntlet has been laid down as follows: Are you, as serving our clients, and managing our practices and, a member of the ARCPA, going to revert to Boomer thus, we did not prioritize the time commitment to mentality of after-the-fact policy implementation, or will participate in the creation of business laws, regulations, you grab this moment and build off the 2021 legislative and policies. If we had participated at the local, state, session and become a participant in the legislative and national level, perhaps we would live in a different process? business environment, especially fiscally at a national level, and our CPA profession would perhaps be The 2021 legislative session, through the efforts perceived in an additional trusted advisory role besides of Senator Jonathan Dismang and Representative just acting as our clients’ most trusted advisor. Joe Jett, introduced, sponsored, and passed with their fellow legislative members, legislation to bring We would become our clients’ most trusted advocate Arkansas into favorable conformity with federal law with in promoting good business laws, regulations, and the treatment of PPP loans (not taxable in Arkansas), policies through our legislative processes which, in and unemployment compensation paid (not taxable at turn, would make for a better federal, state, and local all for 2020, but is limited federally). I have not seen business community. the Arkansas Department of Finance & Administration (DFA) numbers, but I would estimate $150-200 The main purpose of my article today is to encourage million in savings to Arkansas businesses in 2020, you to change the Boomer dynamic and become an which provides additional funds for salaries, benefits, active participating member in developing sound, fiscal, purchase of equipment, and business expansion. and business policy at our local, state, and national Arkansas Society of Certified Public Accountants 18 June 2021
LEGISLATIVE An Update on the ARCPA PAC (continued) Please remember that Arkansas tax statutes do not follow federal laws when enacted. The Legislature meets every other year, thus a gap in policy and lawmaking, and the need for advocacy through our ARCPA PAC, Legislative, and Taxation committees. Think about the remainder of the year 2021 and 2022 - the state legislature will not meet again in regular session until 2023. If there are federal tax law changes in 2021 and 2022, we should use the strength of our 3,000 plus ARCPA membership to be on the forefront of working with our state legislators and DFA. We can work through various hearing committees and by contacting our individual Senators and Representatives in our respective districts and counties, and so educate the pros and cons of which federal legislation serves Let’s move away from our Boomer mentality and move Arkansas businesses well, and which do not, and why. forward as a business policy advocate to put Arkansas business first with sound economic policies and Think about the recent federal Coronavirus Retirement business practices. Bill that passed federally, that allowed for favorable tax treatment for loan repayments from retirement One last thought: HB 1209, the Entity Tax Pass- accounts and for a spread of multiple years to pay for Through Act, is projected to save Arkansas business distributions not repaid if used for Coronavirus-related taxpayers who own S-Corporations and Partnerships expenses. Despite late valiant attempts by the ARCPA, as pass-through entities, an estimated $50,000,000 ARCPA member Pat Ballard, and legal counsel Matt annually. Arkansas is the nineth state to pass such Boch, ESQ, a similar bill did not pass in Arkansas. legislation - very forward-thinking, right? ARCPA Arkansas taxpayers will, therefore, be taxed on the members actively participated in the legislative law- 2020 retirement distributions in the year paid to the making process in assisting our state legislators by recipient. We, the members of ARCPA, did not do our educating and providing technical information on the homework. We should have been on the front line of merits of the bill, and by speaking to our legislators with advocating for a similar federal law treatment before the theme “this is a good bill for Arkansas businesses” this legislative session; but because we were not it and to “please make this happen.” We did not wait to slipped through the cracks. All ARCPA members share be after-the-fact on passing HB 1209. The Bill passed responsibility by our inaction before the Legislature with no negative votes in the House or the Senate. convened in session. Good job, ARCPA! Advocacy and education take dollars invested. As I look forward to watching the future positive advocacy Chair of the ARCPA PAC Committee, I personally influence of our CPA profession through the ARCPA. challenge each ARCPA member to contribute $100 to I hope we will look back on the HB 1209 movement the ARCPA PAC each year. Our firm has committed to and continue to become willing participants in the paying $100 for each CPA firm member of the society, legislative process. We can accomplish this through and I challenge other firms to do the same. We have the ARCPA PAC and the ARCPA Legislative and the potential to become a strong Arkansas business Taxation Committees, working together to promote policy PAC. If each ARCPA member would participate, positive business policies on behalf of our clients by the annual funding of our PAC would be $300,000 plus. working with DFA, our respective state legislators, and Currently, we raise about $5,000 annually. by expanding our national level spheres of influence. Arkansas Society of Certified Public Accountants 19 June 2021
MEMBER NEWS From the Board Room... The following issues were covered in the May 20, 2021 Officers and Directors Meeting, which was held in virtual Zoom format: • The following new members joined the Board: o Rocky Goodman, Vice Chair (will serve as Chair 2023-2024) o Andrew Almand, Director, three-year term o Nathan Nailling, Director, three-year term o Joseph Wheeler, Director, three-year term • Lobbyist Rodney Baker gave a legislative wrap-up of the 2021 legislative session. • Treasurer Paul Osborn presented the financial statements for the period ending March 31, 2021, which were approved. • Executive Director/CEO Marsha Moffitt gave the Membership Report as of May 11, 2021. The Board voted to approve 14 requests for membership resignation and to contribute $100 each to the Student Education Fund in memory of seven recently deceased members. • Chair Joseph Rugger gave the Executive Committee Update, which included a recommendation to award a nonvoting honorary membership to Matthew C. Boch, a tax attorney and partner with the Little Rock firm of Dover Dixon Horne, PLLC, in appreciation for his contributions in drafting and ultimately getting passed several tax bills during the 2021 legislative session which will greatly benefit the profession, receiving unanimous approval from the Board. • Bylaws Task Force Chair Charlott Jones submitted two proposed Bylaws revisions, which were approved: o To remove “Peer Review Committee” from the list of standing committees, following a completed transfer of peer review program administration to the Alabama Society of CPAs in 2019 o To change the name of the “Public Relations Committee” to “Membership and Marketing Committee” These proposed revisions will be presented for member approval in the virtual Annual Members’ Meeting on August 26, 2021. • ASBPA Executive Director Jimmy Corley gave a report from the Arkansas State Board of Public Accountancy. • The Board heard the following Chapter and Task Force reports: o LEAD Task Force o Western Chapter o Northwest Chapter The next scheduled Board of Directors’ Meeting will be held on Wednesday, September 22, 2021. Arkansas Society of Certified Public Accountants 20 June 2021
MEMBER NEWS Welcome New Society Members! The Arkansas Society of CPAs welcomes the following new members, effective May 1, 2021. Please take the time to welcome these members and invite them to society and chapter events. To find members, visit https://www.arcpa.org/my-arcpa/member-directory Learn more about our society and the benefits of membership at https://www.arcpa.org/ CPA Members JESSICA ATRIXCO, Arkansas Legislative Audit, Harrison, Northwest Chapter ELIZABETH BENNETT, HCJ CPAs & Advisors, Little Rock, Central Chapter JAMES CLARK, Arkansas Legislative Audit, Little Rock, Central Chapter STACI CLARK, Frazee Fox and Dodge, Little Rock, Central Chapter KATHERINE CRENSHAW, BKD, Fort Smith, Western Chapter MELISSA DANIEL, Arkansas Legislative Audit, Camden, Southeast Chapter LYNNTIA DELAWARE, Bill Hillary & Chelsea Clinton Foundation, Little Rock, Central Chapter SUZANNE JONES, Cook, William P & Associates, El Dorado, South Chapter PRESTON KORDSMEIER, Gaith & Hollenberg, Conway, Central Chapter TODD MCCAULEY, Garland & Greenwood CPAs, Conway, Central Chapter SCOTT PILCHER, Smith Mayfield LLC, Jonesboro, Northeast Chapter SYDNEY THANE, Grier Reeves & Lawley PC, Texarkana, Texarkana Chapter LUKE VERA, Crystal Bridges Museum of American Art, Bentonville, Northwest Associate Members SIMON ARECHIGA, Pierce Firm PLLC, Lowell, Northwest Chapter LONDON BYRD, Pierce Firm PLLC, Bentonville, Northwest Chapter HRISHIKESH DESAI, Arkansas State University, Jonesboro, Northeast Chapter JORDAN HORNER, Garland & Greenwood CPAs, Hot Springs, DeGray Chapter TIMI KINDER, Welch Couch & Company PA, Calico Rock, Ozark Chapter MICAH LAREY, Emrich & Scroggins, Fouke, South Chapter DOVIE MITCHELL, Rasco Winter Thomas Group, Malvern, DeGray Chapter JAYNEELBHAI PATEL, Rasco Winter Thomas Group, Sherwood, Central Chapter ANNA STARR, Garland & Greenwood CPAs, Hot Springs, DeGray Chapter Student Member HEATHER CLARK, University of Arkansas Fort Smith, Van Buren, Western Chapter IN MEMORIAM TED M. HAMMETT ROBERT A. MILLER The Arkansas Society of Certified Public TX Certificate #38865 (1985) Certificate #795 (1967) Accountants deeply regrets the loss of the University of Arkansas Monticello Retired Life Member following members: Monticello Sherwood Arkansas Society of Certified Public Accountants 21 June 2021
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2021 RIA FEDERAL TAX HANDBOOK Special Pricing for ARCPA Members $55 per Copy Order your copy and Save over 55% off the retail price! (Retail cost $126.00) Limited quantity available. Softcover printed book The RIA Federal Tax Handbook, 2021 Edition will help in preparing 2020 federal income tax returns and provide specific guidance to tax consequences of transactions. The RIA Federal Tax Handbook will reflect all tax laws enacted up to the time of its publication late this year. For late or yet-to-be-enacted legislation that may affect current and future tax years after you receive your Handbook, go to: ria.thomsonreuters.com\federaltaxhandbook Order your RIA Federal Tax Handbook through ARCPA. 2021 RIA FEDERAL TAX HANDBOOK ORDER FORM Name ________________________________________________________________________ Firm/Company ________________________________________________________________ Street Address (No PO Boxes Please) ________________________________________________ City/State/Zip _________________________________________________________________ Phone _______________________________________________________________________ Please place my order for the following: ______ RIA 2021 Federal Tax Handbook @ $55 per copy = $ __________ Payment Method: ( )Company Check ( )Personal Check ( )AMEX ( )Visa ( )MasterCard Credit Card Number: _____________________________________________________ Expiration Date: _________________________________________________________ Return form and payment to: Fax form and credit card Arkansas Society of CPAs payment to: 11300 Executive Center Drive (501) 664-8320 Little Rock, AR 72211-4352 Email: rharris@arcpa.org Arkansas Society of Certified Public Accountants 23 June 2021
We’re down to the FINAL HOURS There’s still time to make a difference – become an Arkansas PBS member by June 30! Every hour of programming on Arkansas PBS is made possible by support from viewers like you. Help us meet our challenge of adding 3,000 new members by June 30 to continue bringing you the series you love. That’s one member an hour from now until the end of June. If we meet the challenge goal, the generous members of our Ambassadors Circle will donate additional funds. JOIN NOW at myarpbs.org/donate NEW MEMBER CHALLENGE Arkansas Society of Certified Public Accountants 24 June 2021
Arkansas Society of CPAs Student Education Fund Awards $59,300 in Scholarships The Arkansas Society of CPAs Student Education Fund recently held its annual meeting at the end of February to award scholarships. This year, the ARCPA Student Education Fund awarded a total of $59,300 in scholarships to thirty-five accounting students attending Arkansas colleges and universities, who intend to sit for the CPA Exam. Selections were made by the ARCPA Student Education Fund Board. The students’ college or university accounting department chairs submitted the students’ applications for consideration of the scholarships. The ARCPA Student Education Fund scholarship program rewards academic excellence and encourages promising accounting students to pursue careers as CPAs. The following students have been selected to receive scholarships for the 2021-2022 academic year: Arkansas State University UA Fayetteville Colby Crossfield $2,800 in memory of Phil Victoria Scerbo $1,800 Friday Eldredge Jones & Clark, LLP scholarship Allison Sammons $1,600 Erica Roberts $1,600 Madison Brown $1,600 Rachel Eberle $1,600 Jared Barham $1,600 Laura Loomis $1,600 Carly Clement $1,600 Abigail Smith $1,600 UA Fort Smith Lea Sappington $1,800 Henderson State University Diep Pham $1,600 Monica Tedford $1,800 Jovon Simon $1,600 UA Little Rock Jason Caple $1,600 Aleigha Smith $1,800 in Memory of Abby Trammell $1,600 Lucian Shockey Nicole Reid $1600 in Memory of Barbara S. Angel Hendrix College Lauren Herren $1,600 Joshua Cole $1,800 in Memory of Barbara S. Angel Dillon Booth $1,600 Zoe Kobriger $1,600 Margaret Hardeman $1,600 Levi Jones $1,600 Kayla (Lames) LaFarlett $1,600 UA Monticello Southern Arkansas University Jake Harris $1,800 Anna Griffin $2,300 in memory of Heather Henley $1,600 William P. and Jane C. Cook Savannah Knotts $1,600 University of Central Arkansas Kaidan Zheng $1,800 Friday Eldredge & Clark, LLP scholarship Devin Gilbert $1,600 Tristen Porter $1,600 Logan O'Donnell $1,600 Hayden Webb $1,600 Connor Wilson $1,600 Since 2005, ARCPA Student Education Fund has awarded over $ 665,000 in scholarships. Arkansas Society of Certified Public Accountants 25 June 2021
2021 TAX GUIDE FOR THE ARKANSAS LEGISLATURE ARCPA published a 2021 Legislative Tax Guide. The guide is intended Check out ARCPA Marketplace for the Latest to provide tax information unique to Classified Ads and Job Postings. members of the Arkansas Legislature. The guide features a Q&A format to On the Marketplace, you can view listings or create your own address frequently asked questions. listing! Options for posting a job or classified are 30, 60, or 90 days. All listings are subject to review by ARCPA staff and Complimentary copies were mailed will become active once approved (usually within 1 business to all Arkansas senators and day). representatives. A hard copy can be requested by contacting Robin Harris For more information, www.arcpa.org then Click on at 501-664-8739, or email to Marketplace. rharris@arcpa.org. ARCPA Student Education Fund Each year the Student Education Fund awards scholarships to qualifying accounting majors attending four-year colleges and universities in Arkansas. The Student Education Fund is supported entirely by contributions. It is a 501(c)(3)non-profit corporation, and gifts to the Student Education Fund are tax deductible. DONATE TODAY! For more information contact Robin Harris, rharris@arcpa.org Arkansas Society of Certified Public Accountants 26 June 2021
ARCPA Day of Service Friday, November 12, 2021 Join us as we give back to our communities! Join with ARCPA and the rest of your profession on Friday, November 12, and make a difference! You can choose ANY volunteer activity you want! Some ideas include helping out at an animal shelter, assembling care packages for deployed troops, or cleaning up a neighborhood park. The volunteer options are endless. For a list of possible volunteer opportunities, please contact Robin Harris, rharris@arcpa.org. How it works: 1. Choose an organization to volunteer for and contact them directly to make arrangements for you or your group to volunteer on November 12th. 2. Register your volunteer activity plans with us. 3. Receive a FREE ARCPA Day of Service t-shirt upon registering! T- shirts are free to ARCPA members while supplies last, and can be purchased by non-members at a nominal fee. 4. On November 12th, wear your t-shirt and be sure to take photos of your activity and send them to us; or share them on social media using #ARCPAvolunteer, or #ARCPADayofService so we can showcase your volunteerism on our website and Facebook page. ARCPA members will receive a FREE t-shirt when signing up by October 1st or while supplies last. Non-members may purchase a shirt for $10 each, if ordered by October 1st or while supplies last, by calling Robin Harris at (501) 664-8739 to order. Sign up as an Sign up as a individual Group Arkansas Society of Certified Public Accountants 27 June 2021 CONTACT US 501.664.8739 RHARRIS@ARCPA.ORG
MEMBER NEWS Include Your Firm in the 2021-22 Guide to Public Accounting We want to help you in your efforts to recruit and hire future staff accountants! The Arkansas Society of CPAs is preparing its printed Guide to Public Accounting Firms for distribution to accounting students at Arkansas’ colleges and universities. The guide will assist students and pre-professionals by providing them a free directory of public accounting firms throughout Arkansas and surrounding cities. This guide will also help public accounting firms gain exposure to students preparing to begin careers in accounting. The guide will be distributed to the accounting department heads of Arkansas’ colleges and universities. Further, each ARCPA student member will receive a personal copy. The guide will also be available for students to view and/or download as a PDF document on the ARCPA website. To have your firm’s information included in the Guide free of charge, please designate one person from your firm to complete and return the attached form no later than August 23, 2021. Guide to Public Accounting Firms in Arkansas Please include the information exactly as it appears below for my firm: Arkansas Society of Certified Public Accountants 28 June 2021
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