CONNECTIONSmay • JUNE 2019

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FEATURES COLUMNS Build Upon the Mission ZOEBELEIN ON TAX 22 7 by Robert C. Harris Deferred Tax Gains: When, How and Why? by Tom Zoebelein, CPA

8 Join us for the 100th Annual STORIES OF THE CENTURY 24 Meeting and Centennial Gala Telling the Firm Story: hb&k CONTINUING EDUCATION 29 Breaking Barriers: What’s All the Fuss about A Case for Inclusion 12 by Mike Lutzenkirchen Value Pricing? by Jeremiah Moreland, CPA

14 Meet Members Celebrating 50 Years of Membership What they’ve gained from the ASCPA, why they became CPAs and what they think you ought to know.

Inside the ASCPA

Message from Jeannine...... 4 Message from the Chair...... 5 Mark Your Calendar...... 17 Spring Fever Member News...... 18 16 CPE to kick off the 2019 ASCPA Across Alabama...... 21 Classifieds...... 26 27 2019 Summer Education New Members...... 26 Conference Remembering...... 30 Sandestin is going red, white & blue this year General CPE Schedule...... 32

FOLLOW US! facebook.com/alabamacpa twitter.com/ALsocietyofcpas instagram.com/ALsocietyofcpas @ALsocietyofCPAs May/June 3 MESSAGE FROM JEANNINE

t’s May and this issue of CONNECTIONS is Huntsville firm Anglin Reichmann has been devoted to all things membership. Mem- chosen one of five firms across the country to Ibers are the center of focus here at the partner with the AICPA’s Private Companies ASCPA. Following through on member sur- Practice Section (PCPS) as part of the George vey results to improve member services is vi- Willie Ethnically Diverse Student Scholarship tal to our mission. The range of professional & Internship program. We’re so proud to education offerings and delivery methods is have an Alabama firm chosen for this exciting better than ever and based on your feedback. opportunity, which offers as much as $20,000 Building the future of Alabama’s accounting in scholarship funding for a student in their profession through a consistent campus pres- final academic year. We encourage you to ence is a constant. It is a joy for us to partici- send students to their advisor for more infor- pate in university honors day programs each mation. Application submission deadline is spring and to recognize the talented students May 31. who go on to become part of your firms and From the broader professional perspective, companies. We have ramped up the creation which we are constantly monitoring for you, of engaging chapter events, this year with a what is the evolution of the CPA designation Centennial flair! Advocating for you at the for the 21st century? The AICPA and National Alabama Statehouse and in Washington is Association of State Boards of Accountancy more important than ever and we keep you (NASBA) are working closely to arrive at a updated throughout each legislative session. definition which confirms the role that tech- Peer review has become a bigger program nology and enhanced analytics play in today’s at the ASCPA, as we expand administration accounting environment. University curricula, into other states. We are pleased to welcome CPA exam content and CPA licensure will all Bethany Booth on board as the newest mem- be affected by that definition. Stay tuned as ber of the peer review team. You’ll learn more discussions continue. about her in the July/August issue. While she What else is on the horizon? Oh yes, we have may have felt like her brain would explode on the 100th Annual Meeting on June 13, fol- Day 1, she has adapted seamlessly into our lowed by the Centennial Gala that evening! staff. It will be an amazing day, culminating in an We know that many of you have had your elegant cocktail party rocking a 1920’s theme. heads down over the course of the last sev- We can’t wait to enjoy this milestone with eral months! However, you have also been you in the beautiful setting of the Alabama generous in allowing us to bring some fun Department of Archives and History as our events to firms in promotion of our Centen- state marks its 200th anniversary. Please make nial year. Photos of our most recent food truck plans to join us for both of these events and and cornhole competitions can be found on also to sign up for the Young CPAs’ Charity page 21. At the same time, Beta Alpha Psi Golf Tournament on June 12. We’ll offer lots Chapters around the state have been cel- of suggestions for things to do while here, so ebrating their OWN centennial and it’s been bring the family that week for a deeply mean- wonderful to meet with these students. (We ingful visit to the capitol city. should have bought some Publix stock since we’ve ordered a LOT of their very tasty spe- cial occasion cakes!) Jeannine

4 ASCPA Connections MESSAGE FROM THE CHAIR

t’s been such an exciting experience to serve also so much more! Our Society does such a a profession so filled with history yet in the great job of managing peer review that Arkan- Imidst of such a transformative time! I’ve met sas has placed their program under Alabama’s so many interesting, entertaining, and brilliant umbrella. This accomplishment required an people leading and practicing our profession, enormous amount of planning and prepara- enjoyed visiting new places I haven’t seen tion, countless meetings, discussions and an before, revisited others and learned so very amazing amount of work for all those involved. much. Let me share some of what I’ve learned And it insured that peer review for Alabama with you. CPAs remains rooted in Alabama – rather than being managed from afar. Your voice is heard. When I began on the ASCPA Board, I thought I could be the voice The ASCPA acts as our liaison with regulators of small firms in the state - then I learned that making decisions that impact us and our cli- the voices of small firms were already being ents. Maintaining an active and cordial rela- heard – as were those of larger firms, business tionship with regulators, legislators, and taxing and industry, government, education and stu- authorities protects our interests, keeps our developing trend in the US began as a way to dents. In virtually every meeting I attend, each profession strong, provides needed guidance, reduce barriers for military families who fre- of these sectors of our membership are rep- and makes sure our views are understood. Ala- quently relocate and for lower income work- resented; and their needs and views are dis- bama CPAs have a great deal of respect on the ers trying to gain entry into an occupation cussed and considered. Each of our perspec- national level largely due to the high level of that required licensure (like cosmetology or tives is important to the success and strength past and present leadership. construction). However, the concept has ex- of our profession and each of us has the ability panded to envelop professional licensing into to advance the accounting field in significant Continuing communication with our mem- its wider net. With buzz phrases like Freedom ways. bers, advising them of upcoming events and to Work or reducing government overreach, passing along key information is a critical func- these bills have already been introduced in When you volunteer and get involved, tion of our Society. The ASCPA Connect Com- 26 states and are gaining support without you get more than you give. Following munity is an opportunity for members to inter- adequate consideration of the wider effect each meeting, I return to the office excited act in a variety of areas. Of course, the Society such laws would pose. We must be ready to with something to share that’s of use to our also provides member services, maintains a contact our elected officials so we can explain practice - maybe someone I met, an insight I database of our members and their interests, the difference between professional and occu- gained, a best practice, some new approach as well as planning and attending chapter ac- pational licensing in order to protect the CPA to a service or problem, a fresh perspective on tivities. There is also the Educational Founda- brand and the public trust it represents. an issue, upcoming changes, a looming threat tion and its scholarships, visits to campus for to our business – or something else entirely. I student events, firm visits, member requests In the 100 years since our ASCPA was found- always come away with benefits exceeding the – and lots of other functions that I’m missing! ed, so much has changed in our world and our time I invested – and I enjoyed it! Most signifi- profession - from changes in the demands of cantly, your active involvement keeps you (and We have a wonderful, great team of people our practice, diversity in our composition, and your organization) on top of the many rapid at our ASCPA office who do so much and who how we develop and determine core compe- changes and developments we face firsthand, have a great passion and energy for promot- tencies. Ongoing challenges continue as our not from the sidelines. ing and protecting our profession. They are profession evolves into its future incarnation. doing all they can to be sure our organization I am honored and humbled to have been se- Our profession is being led by some really provides the greatest support and benefit for lected to serve you as chair this past year. I’m brilliant and forward-thinking people. I am our members – and they are all really sweet, excited to leave you in the very capable hands constantly amazed at the outstanding people fun folks, too. I am sending a very HUGE thank of incoming ASCPA Chair Dennis Sherrin as we have leading and practicing our profession. you to all of them for making this year so great we begin our next century. I finish my term as ASCPA Chair invigorated by for me! Thank you! the future of our profession. Your Alabama delegation recently attended The ASCPA does a LOT for CPAs in Ala- the AICPA Regional Conference in Dallas. We Lynne bama! Think the ASCPA mainly provides CPE heard discussions about the continuing evo- and peer review for our members? They do lution of the CPA and changes taking place that, of course, plus arranging conferences for around the world. One presentation discussed various groups and the annual meeting – but potential threats to professional licensure. This

May/June 5

Build Upon the Mission BY ROBERT C. HARRIS

Every nonprofit has a mission or a a discussion with the board lator such as those created by statement of purpose. It communi- identifying what they think is the Texas Medical Association cates the organization’s reason for important to concisely commu- and the Florida Nursery Grow- existence and public benefit. Dis- nicate. ers and Landscape Association. cussions and decisions are framed by the mission. The best are distinctive, 2. Strategic Plan 5. Dashboards memorable and easy to recite. The plan serves as the road- Communicate progress with map or GPS (goals, priorities a visual report using graphics While the mission can stand alone, and strategies) for 3 to 5 years. such as gauges and meters. An there are five documents that easily Members should be informed updated dashboard at board build upon and enhance the impact the organization’s goals. meetings improves under- of the organization. standing of what’s important It can be summarized in a to measure and monitor. brochure or on a business card. Dashboards allow the board Keep it on the board table and to identify gaps and trends at SEQUENCING at committee meetings. It will a single glance, while tying answer, “What does the as- Sequencing is the process of com- successes back to the strategic sociation do for me?” Include bining things in a particular order. plan. it in member solicitations and For instance, launching a rocket to renewals. AIA Orlando initially Everything is built upon a good mis- the moon requires the exact se- distributed its plan to members sion statement. Develop the tools quencing for success. as a postcard. and documents to improve organiza- In an organization, the mission is the tional impact. 3. platform to build upon. You develop Impact Statement Create an infographic that de- other tools and documents based ABOUT THE AUTHOR picts the impact of the associa- Bob Harris, CAE, provides free on the mission, such as the elevator tion. Find data that impresses governance tools and tem- speech and a member ROI state- stakeholders. plates at The NonProfit Center. ment. He is on the faculty for the U.S. For example, size of the com- Here is a sequence of documents Chamber of Commerce and munity, number of employees, that can enhance the mission: has worked in Amman, Jordan, taxes paid, voting strength, Tokyo, Japan; Kiev, Ukraine; 1. Elevator Speech investments, milestones and Phenom Penh, Cambodia; Cai- An elevator speech allows successes. Members want to ro, Egypt; and Minsk, Belarus leaders to communicate a con- know their association has in- to help organizations. Bob re- sistent message between the fluence. Design it as a page or ceived “Association Partner of first and third floors of an office two, avoiding a lengthy report the Year” award from Associa- building. Because attention of statistics and paragraphs tion Trends Magazine in 2012, spans are short, be prepared that require deciphering. and he has authored books on when someone says, “Tell me association management. To 4. about your organization.” Member ROI improve management, he cre- Provide members and pros- ated the Association Self-Au- pects with a tool for deter- It is just a few sentences that diting Process, used by more mining return on investment. include the mission, descrip- than 20,000 organizations. He Before joining or renewing tion of the membership, found- believes that nonprofit organi- stakeholders ask, “Do I need ing information, and major zations should be as efficient to belong? What is the ROI?” goals of the organization. as any commercial business. Create the elevator speech in Consider an online value calcu-

Meet Bob Harris at our first ever Not-for-Profit Summit on Friday, July 26, 2019 in Montgomery. The inaugural event is sponsored by the ASCPA and Alabama Council of Association Executives in partnership with Trinity Presbyterian Church. Register, sign up for the bonus 2-hour A&A update with Jim Martin, and find more details at www.ascpa.org/NFP-2019.

May/June 7 June 13, 2019 at Wynlakes Golf and Country Club, Montgomery

firm team Lunch Break – Box Lunches Grab and Go

Stay and Play

Hampton Inn and Suites in downtown Montgomery. is a partner in the Birmingham office of multistate Bradley Law Firm. He serves as the chair of the firm’s State and Local Tax (SALT) practice group. Mr. Ely has appeared before the Alabama Supreme Court, the Alabama Court of Civil Appeals, the 11th Circuit U.S. Court of Appeals, various federal district courts, the Alabama Tax Tribunal, and various state circuit courts, as well as the U.S. Tax Court. Alabama S0ciety 0f CPAs Invites you to its 100th Anniversary Gala

Thursday, June 13, 2019 5:30-8:00 PM

Alabama Department 0f Archives and Hist0ry 624 Washington Avenue Montgomery, Alabama

$100 per pers0n • $150 per c0uple 1920s C0cktail Attire Proceeds benefit the Alabama Society’s Educational Foundation

10 ASCPA Connections Cheers to our Centennial Sponsors! We extend our deepest gratitude to the following organizations and individuals for supporting our Centennial Celebrations!

50% of the contributions from the Premiere, Chairman’s Circle, and Board Patron sponsors are a direct donation to the ASCPA’s Educational Foundation. Those contributions allow us to attract the best and brightest individuals into the accounting profession from every accredited accounting program in Alabama.

PREMIERE SPONSOR Aon – AICPA Member Insurance Programs

CHAIRMAN’S CIRCLE American Institute of Certified Dent Moses, LLP. Russell, Thompson, Butler & Houston, LLC. Public Accountants Hartmann, Blackmon & Kilgore ServisFirst Bank Anglin Reichmann Armstrong, PC JamisonMoneyFarmer, PC. Sirote Banks, Finley, & White, Co. Jim D. Martin, CPA, CGMA, MAc Smith, Dukes & Buckalew, LLP. Barfield, Murphy, Shank & Smith, LLC. Kassouf & Co. United Way of Central Alabama Carr, Riggs, & Ingram, LLC. Machen McChesney CPAs Warren Averett, LLP.

BOARD PATRON Abroms & Associates, P.C. Jackson Thornton & Co., PC. Richard Harris Ingram & Bozeman Bern, Butler, Capilouto & Massey, PC. McDaniel & Associates, P.C. Wear, Howell, Strickland, Quinn & Law, Bradley Law Firm Merrill Lynch CPAs Culotta, Scroggins, Hendrix & Gillespie, PC. Pearce, Bevill, Leesburg & Moore, P.C. Wilkins Miller

IN-KIND Walker360 WHAT’S ALL THE FUSS ABOUT “VALUE PRICING”? BY JEREMIAH K. MORELAND, CPA

In recent years, there has been a lot of discussion within etc. This theory lies in significant contrast to the Labor the CPA industry regarding the concept of Value Pricing. Theory of Value, which assumes that value is based on Many remain confused about what the term really means. inputs plus some reasonable profit margin. Essentially, Value Pricing means basing your price for services on the value that is being received by the client, as As Ron Baker once said on his podcast The Soul of perceived by the client. In other words, what is the service Enterprise, “If the Labor Theory of Value were true, then a worth to the client? rock found next to a diamond in a mine should be of equal value, because it took the miners just as much labor to Consider for a moment those times when we buy goods or extract and find the rock as it did the diamond.” services and don’t necessarily have a good sense of price prior to purchase. On the rare occasions this is the case, We all know this isn’t the case. Instead, people find e.g. auto repairs or legal work, we are often left confused diamonds extremely valuable in comparison to rocks, for or frustrated as to whether we received adequate value in no rational reason. Sure, diamonds are pretty, they are exchange for the amount we paid. Because of the mystery perceived as rare, and they have long been regarded as surrounding these transactions, these experiences often a status symbol. These traits lead people to value them result in poor customer satisfaction, particularly when the highly. But the truth is that diamonds have no real use for bill we owe is larger than expected. After all, when dealing most people. They aren’t useful for shelter, food, health, with invoices, no one likes to be surprised. Value pricing or anything else practical outside of some technological seeks to prevent this type of poor customer experience by applications. Diamonds are simply valuable because helping the customer fully understand the price and scope people perceive they are valuable. of services prior to moving forward. We in the professional service business have notoriously At its core, Value Pricing is based upon the Subjective done a poor job of understanding value from the client’s Theory of Value. Under this theory, every individual perspective. We’ve consequently done a poor job evaluates each transaction they encounter in life based on maximizing pricing. In large part, the professional service their own circumstances, experiences, status, insecurities, business assumes that high prices can only be justified by

12 ASCPA Connections high inputs. Unless the cost of rendering the service is somewhere between your cost to perform the services and high, we have reasoned, the cost cannot be high. That is a the client’s perceived value for those services. critical mistake in thinking that limits our ability to generate revenue and that ultimately creates a disconnect between While this explanation sounds simple, it’s far from it. It what we charge and what we are worth. can be very difficult to understand what a person values, because what they say and how they actually behave often Of course, it is true that clients see value in the services do not align. To cut through this grey area, our firm spends we offer. That’s why we are CPAs. But clients value more a considerable amount of time and effort to understand than effort and hours. Clients also value knowledge, ideas, how the client values accounting services. We do this by availability, responsiveness, innovation, understanding, gaining an understanding of them, their business, their and ultimately results. Instead of properly valuing these goals, and their concerns prior to developing a proposal. skills and abilities built over years of experience, we tend Additionally, we typically offer a suite of options regarding to employ a “one size fits all” methodology of billing that scope and pricing, allowing them to select the option that does a good job of tracking time, but not actual value. they perceive provides the highest value of services based on the related price. How do we begin to course correct for ourselves and our clients? First, we need to understand what Value Pricing is This approach might not be right for all firms, but for us and what it isn’t. this process more closely aligns the expectations of the client with the firm’s scope and price, which increases the Value Pricing starts with giving your clients a Price before likelihood of a positive experience for the customer. And the service is performed, rather than a Bill afterwards. The a positive experience is exactly what we want. After all, we impact of providing a price vs. providing a bill is tremendous. exist to serve our clients. Through Value Pricing, we have I often hear people say that they practice “Value Billing.” helped demystify our billing and increase revenue by billing But do not conflate the two. “Value Billing” is not the for our expertise and innovation, not just our time. same as “Value Pricing.” Most firms do practice “Value Billing.” We see this when a firm sends a bill to a client that Jeremy Moreland, CPA, CVA, CEPA is a is different from what the Work-in-Process reports tell them founding partner at MST CPAs & Advisors to bill (whether higher or lower). Value Billing is typically in Montgomery. MST CPAs implements going to be a negative for the firm because the person Value Pricing by offering options regarding billing perceives that the value received by the client is scope and pricing for practically all clients less than what the firm’s billing system indicates should be they serve, allowing the client the choice billed, so they must “write down” the difference. to decide which option provides them the highest perceived value. Value Pricing differs from Value Billing in several key ways, but the most significant difference is that, in a firm that In addition to his passion of working with practices value pricing, you give a clear price before the small business owners, Jeremy enjoys work begins. No estimates. No billing rates. You simply working with kids by coaching little league give a price for the scope of work and this price is agreed sports, leading game time for Wednesday upon by all parties for a given scope of work prior to night AWANA, and teaching Sunday performing the services. If the point of Value Pricing is to School to fourth graders. He absolutely set the price based on the value, how do you determine loves spending time with his family and what price to charge to ensure that you get maximum is always looking forward to his next trip profitability based on what the client values? to Disney World. Jeremy is very involved with various nonprofit entities as a board The short answer is that it takes more work on the front end. member and advisory member. He earned The difficulty to Value Pricing is that you must determine his BSBA in 2001 and his MBA in 2002 a fair value before you start the work. You must spend from Auburn Montgomery. He received more time to understand the desired scope of services, the Accounting Achievement Award the level of effort that you will need to accomplish this from the ASCPA in 2002 and the Merit scope of services, and what value your client places on Award from the Alabama State Board of the accomplishment of those services. If you understand Public Accountancy in 2003 for attaining the value your client places on the services, then you now the highest grades on the Uniform CPA understand your pricing ceiling for those services. However, Examination that May. it is important to remember that your goal isn’t to extract all the value out of the relationship in the form of fees, but You can find out more about Jeremy and to share in the overall value with your client so that both the services that MST CPAs & Advisors parties walk away satisfied. In the end, the proper price is provide at www.mstcpa.com.

May/June 13 Meet the Members Celebrating 50 Years of Membership

Every issue we highlight an individual in the ASCPA community with a story to tell about their journey in the profession. In honor of this special anniversary, we decided to do something a little different.

To celebrate our centennial year, we want to thank and recognize the following individuals for 50 or more years of membership in the ASCPA. They have seen the profession transform through ever-evolving standards, requirements, technology and more. Their determination to be a part of such a trusted profession kept them arm-in-arm with our Society. Some of them led very publicly with the ASCPA as Past Presidents, Chairs and Committee Members. Some of them led and continue to lead in a more finite role as leaders at within their organizations or communities. We applaud you for your dedication to the profession by supporting the ASCPA and our efforts to enhance the accounting profession.

Fred W. Nichols John S. Price Hasbrouck Haynes, Jr. Paul T. Putman Clarence R. Dudley, Jr. Jack B. Roberts Richard S. Dukes Stephen W. Mixon Jerry L. Hall George A. Young, Jr. Paul W. Alford Alan C. Davis James V. Corr Gilbert F. Dukes, Jr. Frank V. Lamar, Jr. Brenda L. Wright William D. Helton James A. Johnson William W. Jessup Bryan M. Hassler Charles R. Johnson Edwin L. Crane James W. Conrad III James H. Corbin, Jr. William R. Blankenship Glen H. Strickland Robert C. Keys Roy B. Gibson Aubrey D. Barnard Harold E. Phillips Herbert A. Barr, Sr. John E. Ingram Yuell B. Busey Charles R. Evans H. B. Lee, Jr. Dewey L. Blankenship J. Hoyt Looney Gene E. Evans Carl A. Barranco Julius K. Love Ross B. Melvin, Jr. W. Lacon Carver Thomas F. Collins Jimmy A. LaFoy John A. Lyon, Jr. John P. Livings Elizabeth P. Vrachalus Johnny C. Fricke, Jr. Mac F. Carpenter Larry E. Newman Jack G. Robison Jerry L. Parker Frederick E. Coleman G. Warren Morrison Leon M. Kelley David C. Crawford Rudolph M. Ohme, Jr. Eugene J. Donsbach, Jr. John B. Mostellar Donald R. Garris Davis S. Burton, Jr. Charles R. Chamblee Larry G. Cooke Steven L. Masterson Will J. Betancourt Joseph A. Boohaker Beckham D. Palmer, Jr.

Nominate a Fellow ASCPA Member for Recognition Has a fellow ASCPA member made an impact on your career or personal life? Do you want to know more about a younger or more experienced leader that we haven’t featured in our Member Profile column? Nominate someone for us to interview for their insights on success as a CPA and leader in their community! Send their name and three reasons why you think other ASCPA members would benefit from knowing them to Corena Cottles at [email protected]. We asked this select group of members to give us some insight into their lives as a CPA and ASCPA member. Here’s what they wanted to share with you.

How has being a member of the ASCPA benefitted you? Mac Carpenter Dothan, AL | Certificate# 478 Being a member of the Alabama Society of CPAs for 58 years has Donald Garris afforded me many opportunities to be associated with professionals Rainbow City, AL | Certificate # 836 I have grown to admire and respect. Early in my career, members of I believe that being a CPA enhanced the confidence that potential the profession and Society supported and encouraged me to seek clients and employers had in me and often helped open doors for high goals and serve in leadership positions I would have never new career opportunities. thought possible. It has been an honor and privilege I will never take for granted or forget. Leon Kelley Montgomery, AL | Certificate # 735 James Johnson As a young accountant I recognized the benefits of being a member Florence, AL | Certificate# 560 of the most trusted profession in the country. Therefore, my goal Being a member of the ASCPA gives me access to annual CPE was to become a CPA and a member of the professional accounting courses and keeps me abreast of the required practice changes. organizations.

James “Jim” Conrad, III What advice would you give a newly certified CPA? Birmingham, AL | Certificate# 671 Fred Coleman I served on the CPE committee for many years. I felt the ASCPA Birmingham, AL | Certificate# 509 courses were the best sources of CPE. Attending the courses not Studying and staying current with the literature of the public only helped me gain knowledge but gave me a chance to meet other accounting profession does not end at the time you pass the CPA CPAs and instructors that I could contact. exam It is a continual process. Your knowledge and maintaining the ethical standards of the profession is what makes you exceptional in G. Warren Morrison our society. Birmingham, AL | 701R This is a tough question to answer in just a few sentences because Glenn Strickland there are many benefits that I have received from being a member Russellville, AL | Certificate# 590 of the ASCPA! To name just a couple I have to think back to all the I hold certificate #590 and am celebrating the completion of my CPE that the ASCPA has made available to us. One of my favorite 59th tax season in public practice! The only thing that is constant is presenters was the late Dr. Tom Ratcliffe, who was an amazing change. individual. He was a very knowledgeable individual and the way he presented the material always enhanced my interest in the subject Gene E. Evans matter. Another benefit is the friendships that I have gained over the Douglasville, GA | Certificate# 600 years because of participating in some of the many activities of the Value the fact that you are a CPA. Being a CPA is a very honorable ASCPA. profession and no matter which direction you take in life being a CPA will be an asset for your career. I have been a pastor for almost 40 Why did you become a CPA? years and my experience as a CPA has been a tremendous blessing Jerry L. Parker to my life as a minister. Vonore, TN | Certificate # 829 I wanted to be a CPA and have the rewarding experience of working John Livings as a CPA in Alabama and associating with other professionals who Montgomery, AL | Certificate# 619 were in the ASCPA. I still have many friends who are retired but, I’m No matter how far technology may take us, public accounting is sure, are still members of the ASCPA. about serving people and that can result in a lifelong relationship.

David Crawford H.B. Lee, Jr. Birmingham, AL | Certificate # 832 Birmingham, AL | Certificate# 698 I believe that being a CPA has taught me the value of integrity, Find your passion in life and then follow your dreams. friendship and loyalty.

May/June 15 SpringFever19.indd 1 3/15/2019 12:01:41 PM WE’VE GOT SPRING FEVER! DON’T FORGET TO REGISTER 012 2019 Compilation and Review 016 Financial Statements of Join us in Montgomery at the at least 10 days before each class Update for the Local Firm Nonprofit Organizations: Significant SpringFever19.inddASCPA 1office or in Birmingham to get the Early Bird discount Thursday, May 16, 2019 Changes are Happening 3/15/2019 12:01:41 PM at the Pelham Civic Center for and to visit ascpa.org/cpe/catalog PM Montgomery | AA: 4 Friday, May 17, 2019 PM Montgomery | AA: 4 three days of the freshest CPE for the latest details about each of LS010 2019 A&A Update for the Real this season. these courses. World 013 The Complete Guide to Section Thursday, May 16, 2019 199A’s 20% Pass-Through Deduction AM Live Stream | AA: 4 After IRS Guidance 002 2019 A&A Update for the Real 008 The New Leasing Standard: It’s Friday, May 17, 2019 LS012 2019 Compilation and Review World Here and It’s Huge AM Montgomery | Tax: 4 Tuesday, May 14, 2019 Wednesday, May 15, 2019 Update for the Local Firm AM | Pelham | AA: 4 PM Pelham | AA: 4 Thursday, May 16, 2019 015 Agricultural and Farm PM Live Stream | AA: 4 Activities: Special Rules and New 004 2019 Compilation and Review 005 The Complete Guide to Section 009 Surgent’s Individual Income Rules Update for the Local Firm 199A’s 20% Pass-Through Deduction Friday, May 17, 2019 Tax Update Tuesday, May 14, 2019 After IRS Guidance PM Montgomery | Tax: 4 PM Pelham | AA: 4 Wednesday, May 15, 2019 Thursday, May 16, 2019 AM Pelham | Tax: 4 AM Montgomery | Tax: 4 LS013 The Complete Guide to 001 Surgent’s Individual Income 011 Surgent’s S Corporation, Section 199A’s 20% Pass-Through Tax Update 007 Surgent’s Mastering Basis Deduction After IRS Guidance Tuesday, May 14, 2019 Issues for S Corporations, Partnership, and LLC Tax Update Thursday, May 16, 2019 Friday, May 17, 2019 AM Pelham | Tax: 4 Partnerships, and LLCs AM Live Stream | Tax: 4 Wednesday, May 15, 2019 PM Montgomery | Tax: 4 003 Surgent’s S Corporation, PM Pelham | Tax: 4 014 The New Revenue Standard: LS015 Agricultural and Farm Partnership, and LLC Tax Update Activities: Special Rules and New Tuesday, May 14, 2019 010 2019 A&A Update for the Real Speaking a Different Language of Revenue Rules PM Pelham | Tax: 4 World Friday, May 17, 2019 Thursday, May 16, 2019 Friday, May 17, 2019 006 The New Revenue Standard: PM Live Stream | Tax: 4 AM Montgomery | AA: 4 AM Montgomery | AA: 4 Speaking a Different Language of Revenue Wednesday, May 15, 2019 AM Pelham | AA: 4

16 ASCPA Connections MARK YOUR CALENDAR September 19 May July Tuscaloosa Chapter May 14 July 16 Luncheon- Joe Espy East Alabama Chapter East Alabama Chapter Levee Bar & Grill, Tuscaloosa Luncheon Luncheon Saugahatchee Country Club Saugahatchee Country Club Opelika September 20 Opelika Birmingham Chapter A&A Update - Bruce Nunnally May 17 Harbert Center, Birmingham Birmingham Chapter Women’s Luncheon August September 27 The Club, Birmingham August 15 Accounting Interview Day Tuscaloosa Chapter Tax Wynlakes Country Club Montgomery Update - Lisa McKinney JamisonMoneyFarmer, Tuscaloosa

June August 23 June 1 Wheeler Basin Chapter A&A October East Alabama Chapter Jim Martin October 17 Doubletree at the Decatur Riverfront Community Service Day North Alabama Chapter Lee County Youth Development Center Social Boiler Room, Florence

June 12 Young CPA Charity Golf September Tournament September 2 Robert Trent Jones, Prattville East Alabama Chapter CPE on Artificial Intelligence June 13 Auburn Chamber of Commerce 100th Annual Meeting Wynlakes Country Club September 13 Montgomery Diversity & Inclusion Student Conference June 13 Wynlakes Country Club Centennial Gala of the Montgomery ASCPA Alabama Department of Archives and History, Montgomery

Information about these and other upcoming chapter and student events will be sent out via email and posted on www.ascpa.org.

May/June 17 MEMBER NEWS

One of ASCPA’s AICPA Fox earned a degree in accounting from really looking forward to the type of work Council Representatives, the University of Alabama in Huntsville but and people I will be working with at the S. Jon Heath, a had a special interest in manufacturing. Alabama Farmers Federation,” Holifield said. Partner and Director of This led to manufacturing positions where “One of my goals with the Federation is to Professional Services she managed a team of accountants, led improve accounting processes by helping to and SEC services at budget planning, managed cash flow and transition them to a more paperless system.” Carr, Riggs, & Ingram, coordinated reporting and audits. She was was appointed to the a key member of a merger and acquisition Holifield earned an accounting degree Auditing Standards Board team that handled due diligence, refinancing from The University of Alabama and (ASB) for the 2019-2020 volunteer service and reorganizations for multi-million-dollar received her Master of Accountancy from year beginning May 21, 2019. deals. Part of her work involved European Auburn University at Montgomery. She and Chinese entities, including a two-year previously worked with Jackson Thornton The ASB is the AICPA’s senior committee assignment in Belgium during the opening in Montgomery where she specialized in for auditing, attestation, and quality of a new manufacturing facility. Fox has external audits of utility cooperative clients. control applicable to the performance and also worked on financials and compliance Holifield and her husband, Forrest, live in issuance of audit and attestation reports for privately held and publicly held entities, Prattville and attend Centerpoint Fellowship for non-issuers. Its mission is to serve the both U.S. and foreign-owned, including SOX Church. public interest by developing, updating compliance. Her most recent work was in the and communicating comprehensive auto industry. standards and practice guidance that enable practitioners to provide high-quality, “My interest in Anglin came after I hired Joe Howard of objective audit and attestation services them for some costing and international tax Montevallo was awarded to non-issuers in an effective and efficient consulting,” Fox says. “I was impressed with the 2019 Nathalie manner. how they took care of the client, and it made Molton Gibbons Alumni me want to explore options there to work Achievement Award with multiple manufacturing companies and by the University of apply my experience in new ways.” Montevallo National Mountain Brook based Alumni Association firm,Boreland Benefield, during their P. C is beyond pleased Homecoming Luncheon to announce the The Chamber on February 9, 2019. promotions of Clif Daniel of Commerce of Howard received his Bachelor of Business to Shareholder and Bob West Alabama Administration degree from the University Poole to Supervisor. recognized top in 1989. While in college, Howard stood out volunteers for as a leader, serving as treasurer of Pi Kappa Mr. Daniel graduated 2018 during its Alpha fraternity for two years, as a resident from Birmingham 118th annual assistant in Housing and as SGA president Southern and has over celebration, his senior year. He was also a student athlete 14 years of experience in presented on the golf team from 1986-1989. audit, tax, and accounting on Thursday, services. February 28, After graduation, Howard worked with the 2019. Carol international accounting firm Coopers & Mr. Poole is a graduate Gilliland, of Northport, AL, was recognized Lybrand (now PriceWaterhouseCoopers) of Auburn University for outstanding community leadership with for more than six years. He rose to become and has over 7 years’ the Distinguished Service Awards. The manager of the Litigation Support Division experience in audit and Distinguished Service Awards are presented before leaving in 1995 to become a partner tax services. to individuals or organizations for their in a local CPA firm. Then in 2005, he opened service and leadership. his own firm. In this endeavor, Howard has been a successful small business owner for approximately 20 years. Anglin Reichmann Armstrong, P.C. Monroe County native His service has extended back to his alma announced that Kelly P. Rachell Holifield joined mater as well. As an alumnus, Howard has Fox has been hired as a the Alabama Farmers served on the UMNAA Board and the UM full-time manufacturing Federation as manager Foundation Board. Howard exemplifies consultant. Fox brings of accounting process on the Alumni Achievement Award, which 11 years of experience February 18, 2019. recognizes an alumnus whose contributions, in controller and CFO- through career or community service, reflect level services after “Being from Monroeville positively on society at the local, state or in-house work with two and growing up in a national level. manufacturers. family of farmers, I am

18 ASCPA Connections but an Elliott Davis spokesperson told the MIS and allowance for credit losses. BBJ that Tyne’s goal will be to expand the Prior to Regions, he served as chief risk JamisonMoneyFarmer PC announced the firm’s footprint into Alabama. and compliance officer at Colonial Bank, promotions of CPAs Kristi Moore and Rachel overseeing risk management, compliance, Taylor as shareholders effective Jan. 1, 2019. Tynes, who has more than 25 years of internal audit and security departments experience in finance, focuses primarily on with over 100 associates. At AmSouth Kristi Moore joined the risk advisory services, consulting on key Bank he served as chief financial officer firm in 2004 and has over issues facing clients in the financial services for the consumer line of business, which 15 years of experience in industry. Tynes will further strengthen the represented 70 percent of consolidated public accounting. She is strategic offerings the firm delivers to its earnings of the company. He began his a graduate of Leadership clients and will focus specifically on the career at PwC, where he worked as a Tuscaloosa, the ASCPA firm’s growth in Alabama, Georgia and certified public accountant (CPA) and audit Leadership Academy, and Tennessee. manager. Tynes earned his bachelor’s is an A-Team Coach at the degree in accounting from Auburn Church of the Highlands. In his previous role at Regions, he was University. Kristi is a graduate of responsible for credit reporting, credit Tuscaloosa County High School and the JULY 25, 2019 | BIRMINGHAM University of Alabama. She is married to Bobby Moore, and they have three children, Jordan, Tyler and Vera Katherine.

Rachel Taylor joined the firm in 2005 and has over 13 years of experience in public accounting. She is a member of the American Society of Woman Accountants, serves on the boards of the Hospice of West Alabama and the Federal Tax Clinic. She previously won the Woman to Watch award from the ASCPA and the Defining Women of the Year award from the Chamber of Commerce of West Alabama’s Women in Business Council. Rachel is a graduate of Tuscaloosa County High School and the University of Alabama. She is married to Andre Taylor, and they have two children, Madeline and Joseph. She is also a graduate of Leadership Tuscaloosa and the ASCPA Leadership Academy.

The addition of Taylor and Moore makes six females of the firm’s 14 current shareholders. JMF employed the first female CPA in Tuscaloosa, the late Doris Grammas.

Tommy Tynes, former senior vice president of credit risk analytics at Regions Bank, has joined Elliott Davis, LLC. as Alabama market leader and a consultant for the firm’s financial institutions group. Tynes will be based in Birmingham. There is currently no Elliott Davis office in Birmingham,

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20NFP-2019-Half.indd ASCPA 1 Connections 2/12/2019 12:54:25 PM ASCPA ACROSS ALABAMA 1 2 1 Athens State University Accounting Club Meeting; 2 David and Gerry Kassouf with Archer Maximilian; 3 Ashley and Andrea from Becker; 4 James Dicks and Kevin Cook about to battle it out in cornhole-Kassouf; 5 Off the Hook food truck event at Dent Moses; 6 Alabama State University CPA Night; 7 Troy Accounting Club; 8 Jeannine Birmingham with Accounting Achievement Award winner Matthew Farris; 9 Battle of the Bean Counters at Dent Moses. 3 4

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May/June 21 DEFERRING TAX GAINS: WHEN, HOW, AND WHY A Review and What’s New BY TOM ZOEBELEIN

I know as a practitioner our first thought is to The §1033 deferral treatment is elected by not followed as prescribed. The main requirement defer taxes as long as statutorily possible. But recognizing the gain in the tax return for the is that the exchanger cannot have receipt or in light of the current historically low tax rates, year of the involuntary conversion. In the year constructive receipt of any money or property does that make sense? The 2020 elections are of replacement or repair our client must file a prior to the close of the exchange. Both the not that far away. Is it worth taking a gamble §1033 statement with the income tax return, reverse and deferred exchanges require the that tax rates will be as low, or lower, than they listing the replacement property’s cost, amount services of a qualified intermediary (“QI”) to are today? If we are satisfied deferring is the of gain deferred, and the tax basis net of the avoid constructive receipt. The second rule is correct move, what IRC Sections are involved? gained deferred. This statement is made each that entire sale proceeds (less closing costs) be Presently, we have three Internal Revenue year there is a replacement until the gain is reinvested in the replacement property. A com- Code Sections that permit gain deferral: two absorbed or the replacement period expires. mon misconception I have seen in practice is that are old and one that is new with the TCJA. Please note that at the end of the deferral where the client believes that only the net cash period, any deferred gain not absorbed by re- showing due him at closing is all that needs to Involuntary Conversion Gain Deferral placement property or repairs will reopen the be reinvested. We must remind him that some Despite the TCJA’s severe limitations to loss year and be a recognized gain in that year. of the cash proceeds were used to pay off casualty losses (limited to federally declared debt secured by the property. It is important to disasters), the resulting gain from a casualty Like Kind Exchange Gain Deferral remember that each dollar not reinvested is a claim settlement can still be deferred under The §1031 like kind exchange (“LKE”) is the dollar of gain recognized, up to the total gain IRC §1033. §1033 gain deferral is available for most familiar method of deferring gain, as on the sale of the relinquished property. both business and nonbusiness involuntary everyone who has ever traded in their car to conversions. The fact that our client must a dealership made a like kind exchange. Prior The QI and the exchanger enter into a legal measure any settlement payment based on to 2018, LKE included both real property and agreement detailing the exchange. Prior to their historical net tax basis in the lost asset, non-real, personal property exchanges, such the sale, the exchanger makes the QI party the settlement payment (at current costs) often as trade-ins. The TCJA removed all qualifying to sale such that the net cash at closing goes can produce an artificial tax gain. §1033 allows exchanges but real estate exchanges, effec- directly to the QI. The exchanger then has our client to defer the gain from the settlement tive 1/1/2018. This instantly made all non-realty 45 days from the sale date to provide the QI and apply it against the damage repair or the exchanges taxable transactions, including with a description of three or fewer potential replacement property. business personal property trade-ins against target replacement properties. If more than new equipment. Outside of a revenue raising three properties are submitted to the QI, the The casualty loss is but one type of invol- measure this change made no logical sense, total value of properties named cannot exceed untary conversion covered by §1033 defer- especially considering its impact on regular 200% of the FMV of the relinquished property. ral. They also include theft losses, property business. The exchange must be completed within 180 condemnations, or threats of condemnation. days. The tax return cannot be filed before the Under §1033, gain from the settlement can be The irony to me is that the TCJA removed exchange is completed or the 180 days lapse. deferred for the balance of the calendar year the most restrictive §1031 exchanges while If the exchange will straddle two tax years it is of the involuntary conversion plus the next two preserving the exchanges with the most liberal important to extend the tax return. Otherwise, tax return years. Under certain circumstances, rules: real estate. The rules for qualifying re- the original due date of the tax return will toll the period can be extended by requesting ad- placement property in real property exchanges the replacement period’s end. ditional time with the reason for the extension. are so liberal that raw land can be exchanged For instance, Presidentially-declared disaster for developed property, and vice versa. To The deferred exchange is a great mechanism areas can have up to two additional tax years. qualify, the realty given up must be used in a when your client is going to build on the The request for more time to acquire the trade or business or held for investment, and replacement property. The QI will hold title to replacement property must be made in the tax the realty received must continue in that use. the property while the build is going on. At return of the second replacement year. (Remember to watch out for depreciation re- completion or at the end of the 180 days the capture when exchanging developed property land, land improvements, and building will The deferral period gives the taxpayer time to for raw land.) all qualify as replacement cost. If not com- acquire replacement property or make the nec- pleted in 180 days, then the expenses incurred essary repairs. The replacement property must The purest form of an LKE of real property during the 180 days plus the land will qualify be similar to, or similar in use to, the destroyed is the original: a simple exchange of deeds. as replacement property. The client can be property. The gain deferred reduces the basis Though the simple exchange is the purest, manager of the project, he just cannot have of the replacement property or repair cost. If it does not fit most modern exchanges, for any ownership. Remember you cannot build the settlement is delayed due to disputes over myriads of reasons. The IRS Regulations under on your property already owned, which is why the monetary loss, the two-year clock will start §1031 allow two basic tax fictions that ignore this works so well. At the end of the build or with the dispute settlement date. Disputes the interim steps of an exchange, looking 180 days, the property is transferred to the over value in the cases of government con- only at the final exchange, which mirrors the exchanger and the LKE is complete. On the demnation of a taxpayer’s property can take simple deed swapping exchange of old. The build to suit, the QI will usually set up a SMLLC years to reach settlement. two IRS sanctioned exchanges are the deferred to hold title to the property and at the end exchange and the reverse exchange. The most the SMLLC is transferred to the exchanger. In practice, I mainly see either destruction of common one is the deferred exchange, in Remember, both the 45 and 180 day periods property or eminent domain condemnation which the exchanger has a buyer for the prop- are calendar days, and not business days so (such as for road widening) involuntary conver- erty he is relinquishing but has not found a re- weekends and holidays count. There is no ex- sion cases. Do not forget involuntary conver- placement property. The less common reverse tension, and because it is legislative privilege, sion also include the threat of a condemnation exchange is, as the name implies, the reverse any failure to follow the prescribed procedures if your client wants a quick settlement. In cases of the deferred exchange, as the exchanger will cause the exchange to fail. If a deferred where there is a dispute as to the amount has found replacement property before locat- exchange straddles two tax years and fails it is of the damage or the value of condemned ing a buyer for the relinquished property. considered an installment sale and gain will be property, the reporting year is the year the recognized in the year the 180 days run out. claim is settled, not the year of the involuntary The deferred and the reverse exchanges being conversion. tax fiction, the rules in the Regulations must be

22 ASCPA Connections The reverse exchange is similar to the deferred qualified opportunity zone. We are starting I have reviewed three important IRC Sections exchange, but it involves the service of second to see QOZF funds being marketed by the available to your clients for deferring gains. In third-party professional called the exchange brokerage firms. There are funds investing in my opinion, §1033 deferral is a no brainer, and accommodator title holder (“EAT”). The EAT downtown Birmingham projects that should I used it in private practice. LKE and the new takes title to the property to be sold in what grow in value for the investor. opportunity zones, I think, take a little more is referred to as a “parking transaction.” The time and discussions with you client. I see it parking transaction is similar to sale, as the EAT I had a farming client consider taking to add a more like the TV show “Deal or No Deal,” with gives a note to the exchanger for the sale price processing plant to his farm. We look seri- you the game show host. Unlike your TV host of the property. The QI purchases the replace- ously at taking advantage of §1400Z for this counterpart, you have the advantage of advis- ment property and leases it to the exchanger new plant. The deal-killer was the farmer in the ing your clients to help them make their best at a rental rate that covers the servicing of the opportunity zone wanting our client to buy his choice. loan used to purchase the replacement prop- entire 100-acre farm when all that was needed erty. The EAT has 180 days to sell the parked was two acres. If it can fit, this is a powerful tool Edited by Clara Benitez, CPA property. If he fails, he returns the property for existing business expansions. to the exchanger and the note is canceled. Since there is no sale for gain to be deferred, the failure is a nonevent. The only times I have been involved in reverse exchanges have been with involved jet aircraft, so I am not sure how this will work with real property. §1400Z Qualified Opportunity Zone Capital Gain Deferral The TCJA established a new tax deferral which allows a taxpayer to invest his capital gain in Qualified Opportunity Zones Funds (“QOZF”). The taxpayer only invests the capital gain realized instead of the net sales price required for a successful LKE. Taxpayer has 180 days to elect to defer his capital gain by investing in the QOZF. The 180 days is normally from the date of the capital transaction, but in the case where the taxpayer only learns of the capital by receipt say of a K-1, he has 180 days from year end to invest. If the pass-through entity elects not to invest in QOZF, it does not preclude the taxpayer from making the investment. The capital gain can be deferred for a period of up to ten years before the gain is recog- nized. Ten percent of the capital gain is ex- cluded if held seven years, and a total of fifteen percent of the original capital gain is excluded when recognized in the tenth year (90% for more than five years, but less than ten). The in- vestment in QOZF can grow tax-free such that its basis will be equal to FMV at disposition when elected. If a loss, it will be recognized by not electing tax free treatment. The QOZF can be either a corporation or a partnership that must invest at least 90% of their assets in Qualified Opportunity Fund Property (all must be acquired after 12/31/17). The taxpayer can even start his own QOZF fund by self-certifying by completing IRS Form 8996 and attaching it to his tax return. This is a very important feature for a business in an opportunity zone and is expanding his plant. They can set up their own fund and invest in their own business expansion. Qualified Opportunity Zone Property are:

• Original issued partnership interest in Qualified Opportunity Zone Business

• Original issued stock in Qualified Opportunity Zone Business

• Qualified opportunity Zone business property The taxpayer is not limited to invest in his state’s opportunity zone, but can invest in a

May/June 23 hb&k collected holiday gifts for the Salvation Army’s Angel Tree program.

TELLING THE FIRM STORY Hartmann, Blackmon & Kilgore, P.C (hb&k)

Hartmann, Blackmon & Kilgore, P.C. (hb&k) was founded leadership of the firm envisioned for the future of hb&k. By in 1990 by five CPAs. Primarily based on the Gulf Coast of the mid-2000’s, Dennis Sherrin started taking over most of Alabama, the firm’s current offices are located in Fairhope, the managing shareholder responsibilities. Foley, Brewton and Mobile. There was no defined shift when Dennis became managing In the 29 years since its inception, hb&k is a firm that has shareholder, but he continues to lead hb&k in that capacity proudly challenged tradition, embraced changes, and today. Under his guidance, the firm has taken great strides created innovative solutions, all while providing excellent to focus on internal initiatives and strategic planning to service to our clients and our community. change the way work is approached.

LET’S GO BACK TO THE BEGINNING One of the most influential and positive changes the Xavier Hartmann, III served as the firm’s first managing shareholders made was the hiring of a consulting firm to shareholder. He describes the early years as being “highly assist in setting the course of the firm for the future. Since demanding” meaning that work came first, and personal 2010, hb&k has been partnered with Boomer Consulting, Inc. lives came second. An 80-100+ hour work week was This relationship provided the guidance and tools that have standard during tax season. At this time, the firm functioned helped shape the culture of hb&k into what it is today. in a top-down model of operation, with the offices working in silos – each with their own clients, employees, and CHALLENGING TRADITION processes. The very first engagement with Boomer Consulting was a facilitated Strategic Planning session. During that session, The primary focus for everyone was billable hours. Even Gary Boomer encouraged open, candid, and painful shareholders concentrated on client work, which meant conversations between the shareholders to get everyone on no one was working on building the business. Although the same page. The outcome was a more unified leadership this method of operation was standard, it wasn’t what the team and a renewed confidence in the direction the firm was

24 ASCPA Connections moving. This unity and confidence opened the path to the The firm and its employees continue to maintain this forward- next major step in creating a better-functioning team: a Lean thinking mentality today. Projects like Strategic Planning, Lean Six Sigma project. Six Sigma, Project 40™ and Kolbe started as internal solutions for hb&k. Seeing their value, hb&k now actively offers these, hb&k’s first Lean Six Sigma project reengineered the process and other consulting opportunities, as services to clients and of completing individual tax returns. This major endeavor potential clients. eliminated the varying processes and personal preferences creating one process. Doing this resulted in a new system CORE PURPOSE based on steps within a process – it meant any employee There have been many changes in the evolution from a in any office could work on any client’s information, since traditional accounting firm to an innovative consulting firm, everyone was following the same process. Within the first year, but the firm’s core purpose has remained the same from the results were obvious: more returns were completed faster 1990 until today - to create value for our clients, employees and with fewer review notes, which decreased the amount of and communities. In the past, the company phrased this time spent on returns. in a statement saying: “We serve each of our clients to the utmost of our ability, we treat our colleagues with respect and In fact, Lean Six Sigma was so impactful that Earl Blackmon, we proudly support the communities in which we live.” An one of hb&k’s founding shareholders, obtained his certification updated version of this can be seen on the firm’s social media in Lean Six Sigma. He continues to lead hb&k and other as #WeGotThis. companies through process reviews every year. Just as the firm’s catchphrase has been updated, the EMBRACING CHANGE expectation of what creates value has changed since the firm One thing that has always set hb&k apart is how the firm was founded as well. During its first decade of operation, hb&k embraces technology. With the foresight of how much functioned in a similar fashion to most traditional accounting technology would play a part in our industry and in the world, firms. Now, the firm is actively growing through acquisition hb&k has always actively researched and pursued leveraging opportunities while continuing to create a unique culture that software to create a better work experience for the employees is focused on innovation, challenging the status quo, and and a better product for our clients. This, coupled with internal looking for new avenues of growth. initiatives and Lean Six Sigma, gave way to a new goal: creating better work-life balance.

January through April remained a season of too much caffeine, headaches from hours of staring at computer screens, and an exhausting amount of overtime. But seeing the noticeable impact of Lean Six Sigma, Dennis presented the idea of working a 40-hour work week year-round.

Although the idea sounded too good to be true, a group of employees developed an internal initiative called Project 40™ to start making this idea a reality. The focus of P40™ began as an effort to decrease overtime and has evolved into a focus on increasing work-life balance and employee satisfaction.

CREATING INNOVATIVE SOLUTIONS The firm hosted an Eastern Shore Chamber of A unique aspect of hb&k’s culture is that many Commerce Business After Hours event. initiatives and internal committees are employee- driven.

Employees are actively involved in business growth and are given the opportunity to work on projects they find most meaningful. The firm uses the Kolbe A™ and Unique Abilities assessments to better understand each employee. Learning and understanding individual characteristics has encouraged more creative solutions and approaches to team building and problem solving.

For instance, hb&k was one of the first firms in Alabama to offer a Summer Leadership Academy to college students. Wanting a better process for recruiting interns, an employee researched SLA programs and formed a committee which created the schedule and activities for a 2-day SLA program. Although SLA programs are standard today, hb&k was ahead of the curve because an employee saw an opportunity and Local coffee truck brought built a program. Valentine’s Day treats

May/June 25 CLASSIFIEDS Delivering Results - One Practice At a time

Lori Newcomer, CPA & Tim Price, CPA 888-553-1040 NEW MEMBERS [email protected] www.APS.net Welcome to the Alabama Society of CPAs! YOUR PRACTICE SELLING These 24 individuals decided to join WANTED the society’s ranks this past fall. Thinking about selling YOUR FIRM IS your practice? Accounting COMPLEX. LET An introduction can go a long way—it will help Practice Sales delivers results, US MAKE IT these new society members have an instant bringing you the best price, friend and resource, and the connection will likely optimal terms and a buyer SIMPLE. prove helpful to you, too. Connect with these and who represents an ideal fit Accounting Biz Brokers has other fellow society members on the Connect for your clientele. Contact been selling CPA firms for us today for a confidential over 14 years and we know Community through the Member Directory! discussion. your market. We have a large database of buyers Casey E. Bartok, CPA PRACTICES FOR ready to purchase. Our “Six David T. Bruns SALE: Steps to Success” process • Southeast of Birmingham CPA for selling your firm includes Gordon K. Carr, CPA grossing $445,000 *New* a personalized, confidential Jonathan N. Cunnigham, CPA • Mobile area EA practice grossing approach to bring you the $95,000 *New* win-win deal you are seeking. Jennifer M. Forrester, CPA Our brokers are Certified • South Birmingham / Shelby Business Intermediaries (CBI) Kia J. Gamble,CPA County tax practice grossing specializing in the sale of CPA $70,000 *New* firms. We are here to help you Erika F. Goff, CPA • Near Huntsville & Decatur navigate through the entire Stanton K. Harrell, CPA accounting & tax practice sales process – from marketing Stuart A. Hartley,CPA grossing $630,000 *New* to negotiating, to closing and successfully transitioning the Rebecca J. Horsley,CPA • West of Montgomery, AL CPA firm. Contact us TODAY to firm grossing $1 million *New* receive a free market analysis. Jeffrey E. Hutton,CPA, CGMA • Gulf Shores CPA practice grossing Cecil W. Ingram IV $250,000 *Sold* LISTINGS: • Southwest of Birmingham tax Huntsville Gross $200k-SOLD; NE Ashley M. Jones, CPA practice grossing $275,000 MS Tax & Bookkeeping Firm Gross Ca Wen Lee,CPA *Sold* $850k-SOLD, Montgomery Area Gross $28k-SOLD. Leigh Ellen Melson,CPA For more information on these listings or to sell your Kathy Brents, CPA, CBI Hunter J. Melton,CPA practice, contact Cell 501.514.4928 Travis A. Murphy,CPA, CGMA, FP&A Lori Newcomer, CPA and Tim Office 866.260.2793 Price, CPA Fang Nie at (888) 553-1040 [email protected] or [email protected], visit us at John E. Sanderson or visit www.APS.net. www.AccountingBizBrokers.com Patrick W. Smith,CPA Mary C. Weeks,CPA SUCCESSFUL TRANSITIONS Mari H. Winborne, CPA require experienced, confidential, professional services you can trust. We specialize exclusively in the brokerage of accounting Lindsey Y. Wintzinger firms. List your firm with a professional. Scott C. Wiseman, CPA Call David Akins, CPA at 877-277-0272. To learn more about our services and to see firms we have listed, go to our website at www.akinsprofessionalbrokerage.com.

26 ASCPA Connections Spend the 4th with us! 2019 Summer Education Conference July 1-5 • Sandestin Golf & Beach Resort

Sandestin Golf & Beach Resort | 9300 Emerald Coast Parkway West | Destin, FL 32550 | www.sandestin.com

The Summer Education Conference is the perfect balance of hot topics presented by the From beachfront to poolside, there are a variety of GulfShoresCPE.inddindustry’s 1 best speakers with plenty of down-time for fun in the sun with family and friends. properties on the Sandestin Golf & Beach Resort3/29/2019 to 2:35:23 PM And this year we’ve sweetened the deal by scheduling it over the 4th of July holiday, making choose from. And with rates starting at just $215, it easier to plan your summer vacation. We’ve partnered with the Society of Louisiana CPAs to there’s something for just about every vacation bud- provide a variety of accommodations, starting at just $215/night, so we have something to fit get. Visit www.ascpa.org/SEC2019 to see what’s just about any vacation budget. Make your plans to join us this summer! available and make your reservation today.

10:00 am – 11:40 am David Yellott, CPA, CGMA from the East Professional Issues Update Baton Rouge Parish Sheriff’s Office - Baton 2019 AGENDA Jeannine Birmingham, CPA, CAE, CGMA and Rouge, LA President & CEO of the ASCPA Ron Gitz, CPA, CGMA and CEO of the Society THURSDAY, JULY 4 MONDAY, JULY 1 of Louisiana CPAs Independence Day Bash** 8:00 am – 11:40 am No CPE will be offered on July 4th so you 1:00 pm 2019 Accounting & Auditing Update for the REAL have the whole day to celebrate! Instead, World: “What’s Wevenue?”, “Did I Lease That?” and Golf Tournament** you’ll get a credit for any 4-hour webcast that other Career Enhancing Topics on the Horizon you can take at your convenience. Jim Martin, CPA, CGMA from Martin & Co. WEDNESDAY, JULY 3 CPA, PC – Atlanta, GA 8:00 am – 9:40 am FRIDAY, JULY 5 Hot IT Issues Every CPA Should Know About 8:00 am – 11:40 am Les Nettleton from Bourgeois Bennett, LLC - TUESDAY, JULY 2 Individual and Business Tax Update New Orleans, LA 8:00 am – 9:40 am Art Warner, JD from Werner-Rocca State of the U.S. Economy Seminars – Flourtown, PA Dr. Kevian Deravi from Economics Research 10:00 am – 11:40 am Services, Inc. – Montgomery, AL The Fraud Triangle and Common Rationalizations for Occupational Fraud

CPE: 20 hours (includes 6 hours of A&A) *Non-CPA staff of members may attend at the member rate. Prices are good through June (through June 21) Early Bird Fees 14 and include 6 hours of A&A. After June 14, Registration Fees: add $50 to your fee. Members: $500* / Non-Members: $600 Register online at www.ascpa.org/SEC2019 **Optional events. Fees may apply. See or by contacting the ASCPA CPE Team at www.ascpa.org/SEC2019 for more information. 334.836.7650.

May/June 27 BREAKING BARRIERS: The Case for Inclusion

BY KYLE AND BRENT PEASE

28 ASCPA Connections In typical brotherly fashion, Kyle and Brent Pease gear designed for optimal performance and comfort, grew up obsessed with sports. Passionate about their Kyle and Brent weathered the same conditions while hometown teams, the Atlanta Braves and Falcons, supporting each other and many extra pounds of they were often found playing pick-up games in gear. The strenuous course in addition to the stress their neighborhood. Although, the rules were slightly of additional equipment and weight explains why modified. When he was 5 months old, Kyle was only one other assisted athlete team in the history diagnosed with Spastic Quadriplegic Cerebral Palsy, of IRONMAN® Kona has successfully completed the which restricts the use of his arms and legs; however, race. this diagnosis has never impacted his love for sports and pursuit for independence. Almost immediately, Following a grueling 14-week training schedule the Pease family understood the importance of that consisted of more than 280 combined hours inclusion, adapting their backyard games to ensure of swimming, biking, running and strength training, Kyle was an equal competitor. Kyle and Brent made history on October 13, 2018 by being the first push-assisted team of brothers Determined to live a healthier lifestyle, Brent to cross the finish line of the IRONMANâ World completed his first IRONMAN® Triathlon in 2010. Championship – the second overall duo behind the After crossing the finish line, his younger brother, father and son team, Dick and Rick Hoyt. With a time Kyle, asked him a question that would forever change of 14 hours and 29 minutes, Kyle and Brent fulfilled both of their lives, “Can people in wheelchairs do an their lifelong dream of competing in the world- IRONMAN®?” Without hesitation, Brent responded, renowned event. They finished the 2.4-mile swim in “Yes.” 1:07:33, 112-mile bike ride in 8:22:03 and 26.2-mile run in 4:45:54. Prevailing against the race’s infamous Since then, the brothers have completed four weather conditions, the brothers were able to best IRONMAN® events and more than 75 other endurance their previous race time by 35 minutes on the sport’s races as a duo. In 2011, Kyle and Brent launched the most challenging course. Kyle Pease Foundation, a 501(c)3 nonprofit dedicated to improving the lives of the disabled through sports, Capitalizing on the event’s global audience, the to give other people facing similar challenges the World Championship presented an international opportunity to compete. Over the past eight years, platform to show the inclusion of persons with they have worked tirelessly to break down barriers for disabilities in endurance sports creates a path to athletes with disabilities, including six years lobbying permanent change well beyond the finish line. This for a spot with IRONMAN®, four years to enter the led the Kyle Pease Foundation to launch its most New York City Marathon and three to compete in ambitious fundraising goal to date. The Kona Capital their hometown 10k the Peachtree Road Race. Since Campaign was created to enhance the Foundation’s the inception of the Kyle Pease Foundation, it has infrastructure, which in turn supported a greater championed more than 100 athletes across 60 events number of athletes from across the country. As a and raised more than $1.7 million. In addition to races, result, The Kyle Pease Foundation purchased a new the Foundation offers support through programs vehicle to transport athletes to events and a new such as scholarship opportunities, purchasing equipment truck to store and carry gear that allows adaptive sports equipment and participating in athletes of all abilities to compete in races. The Kona educational campaigns around Cerebral Palsy and Capital Campaign also funds two job positions with other disabilities. the Foundation for people with disabilities and a Van Scholarship Grant to aide families who require a During the summer of 2018, Kyle and Brent were costly wheelchair accessible vehicle. invited to participate in the IRONMAN® World Championship in Kailua-Kona, Hawaii. The brothers, Today, the Pease brothers continue their quest for who chased the World Championship dream since inclusion. In March 2019, the Foundation boasted 2012, were selected for an opportunity of a lifetime, its largest field of athletes in a single race with 62 to compete among 2,400 of the world’s toughest competitors in the Publix Atlanta Half Marathon. athletes at the race’s 40th anniversary. Throughout the year, it has teams represented in nearly all major events across the country, As the only wheelchair assisted team in the 2018 including the New York City, Marine Corps and World Championship, Kyle and Brent dedicated Boston Marathons, in addition to IRONMANâ and three months, averaging 30 hours a week, preparing community races. for the most challenging single-day endurance event on the planet – a feat that only one other To help inspire others through their story of push-assisted duo has accomplished. While any perseverance, Kyle and Brent travel the country to IRONMAN® triathlon is difficult, the conditions in speak at corporations, organizations and schools. Kona, which include ocean currents and waves on In May 2019, the brothers will be releasing an the swim, high winds and significant elevation on the autobiography, Beyond the Finish. Available in-stores bike and scorching temperatures on the run, make it and online, the book shares their story of brotherhood, difficult for even the most experienced triathletes to passion and relentless determination to cross the complete. Last to start, they were required to finish iconic finish line in Kona. For more information on within the same 17-hour time limit that is applicable Kyle and Brent Pease and the Kyle Pease Foundation, to the able-bodied participants. Using custom-built visit http://www.kylepeasefoundation.org.

Kyle and Brent Pease are the keynote speakers at our inaugural Emerging Leaders Summit happening July 25, 2019 in Birmingham. Visit www.ascpa.org/EmergingLeader to register and find out more information about this Ted-talk style leadership event.

May/June 29 REMEMBERING

WILBUR GENTRY BERRY, JR. LOUIS TERRY MILLER February 14, 1933 – February 12, 2019 November 16, 1926 – February 22, 2019 Jacksonville, AL | Certificate # 777 Sheffield, AL | Certificate # 621

Wilbur Gentry Berry, Jr. passed away February 12, 2019 at Northeast On February 22, 2019, L. Terry Miller, age 92, of Sheffield, Alabama, left Alabama Regional Medical Center. He has a bachelors and masters this earth surrounded by his children. His story is not about his death, degree from The University of Alabama. He was a CPA and he became but about how he lived. Terry was a son, brother, husband, father, an accounting professor and department head at Jacksonville State grandfather, uncle and friend. He was a successful business owner, loyal University. He worked on many JSU projects including working with community supporter and dedicated Christian man. He excelled in all the JSU Foundation to ensure it was setup from its humble beginnings. his roles. He loved sailing with his friends and family at Birmingham Sailing Club. Wilbur was also a longtime member of St. Luke’s Episcopal Church. Terry was born in Walker County (Carbon Hill), Alabama, in 1926, lived through the Great Depression and learned the importance of hard- BARBARA CONNELL DAVIS work and family. He graduated from Carbon Hill High School where he played on the football team. Upon graduation he chose to serve his November 28, 1942 - March 2, 2019 country during WWII and joined the U.S. Army Air Corps. He attended Northport, AL | Certificate # 3268 officer training school and Davidson College.

Barbara Connell Davis, age 76, of Northport, passed away March 2, His military career took him to Camp Shelby (Mississippi), Shepherd 2019 at Hospice of West Alabama. She graduated with a BS in Biology Field (Texas), Tinker Field (Oklahoma) and various posts in Germany. from the University of North Alabama and a BS degree in Accounting He earned the American Campaign Medal, Army of Occupation from the University of Alabama in Birmingham. Before she retired in Medal, WWII Victory Medal and the European African Middle Eastern 2004, she worked as a CFO for Randall Publishing Company originally Campaign Medal. At the end of the war, he returned to Alabama and based in Tuscaloosa. As a member of the ASCPA, she served on the graduated from The University of Alabama with an accounting degree. Management Consulting Services Committee and Federal Tax Clinic in He began his professional career with the Internal Revenue Service. the late 90s. After earning his CPA, Terry opened his own public accounting firm in 1960 in Sheffield, Alabama. CHARLOTTE ANN MILLER December 22, 1950 – March 3, 2019 Terry loved helping his clients with their accounting and tax needs and Beauregard, AL | Certificate # 5498 had many loyal clients he worked with for more than 50 years. Among his clients were the City of Sheffield, Sheffield City Schools and Muscle Charlotte Ann Miller tragically passed away on March 3, 2019 in the Shoals City Schools. Retirement was an extremely difficult decision that tornado that devastated Lee County. Charlotte was a graduate of Terry made reluctantly at 89 years old, only due to health reasons. Auburn University with more than twenty-three years’ experience in Terry served his community and the accounting industry through public accounting and ten years in the private sector. For the past leadership roles in many organizations over his long life and was a twenty years, she worked diligently for the Opelika, AL CPA firm, member of the Sheffield Kiwanis Club for more than 25 years. He was a Bartlett, Gunter & Yeager, CPA. Charlotte has one son, Justin. She was member of Sheffield First United Methodist Church where he served as a writer and published author with a trilogy of regionally bestselling treasurer for several decades. novels in print. Terry loved traveling to new places with his wife and family. Golf was his passion and many of his vacations were spent at top golf resorts across America. He was fortunate to play many PGA courses, but playing Pebble Beach and the Old Course at St. Andrews were bucket list moments for him. He even returned to Scotland with his son on a second trip to play the Old Course again.

30 ASCPA Connections 2019 Gulf Shores June 18 - 21 CPE Clusters at the beach club

GulfShoresCPE.inddFOUR 1 DAYS AT THE BEACH Join ASCPA favorites Greg Clark, Mike Frost, STAY & PLAY 2/5/2019 2:57:08 PM Choose from 4 to 27 hours of in-person Marc Hamilton and Brent McClure as they teach Book Your Room! Call 215.224.3207 and education at the Beach Club Resort in Gulf on all the latest subjects. Choose your courses mention the ASCPA for a discounted rate. Shores this June 18-21. at www.ascpa.org/GulfShores2019. Accommodations for 1, 2, and 3 bedroom condos are available.

018 Current Issues in Accounting & 023 The Essential Multistate Tax 028 Lean Accounting and 033 Change the Way You Work: Auditing: An Annual Update Update Management: Saving Money by Success as a Virtual CFO Tuesday, June 18, 2019 Tuesday, June 18, 2019 Streamlining Operations Thursday, June 20, 2019 Morning | AA: 4 Afternoon | Tax: 4 Wednesday, June 19, 2019 Afternoon | Other: 4 Afternoon | Other: 4 019 Section 199A: Application and 024 Surgent’s Individual Income Tax 034 The 2018 Yellow Book Revision Challenges in 2019 Update 029 Examining the New Lease Thursday, June 20, 2019 Tuesday, June 18, 2019 Wednesday, June 19, 2019 Accounting Standard: More than Afternoon | AA: 4 Morning | Tax: 4 Morning | Tax: 4 Meets the Eye Wednesday, June 19, 2019 035 Securing a Comfortable 020 Annual FASB Update and Review 025 Controller’s Update: Today’s Afternoon | AA: 4 Retirement in the Age of Spending Tuesday, June 18, 2019 Latest Trends Thursday, June 20, 2019 Morning | AA: 4 Wednesday, June 19, 2019 030 ASU No. 2016-14: Not-for-Profit Afternoon | Tax: 4 Morning | Other: 4 Financial Reporting 021 Guide and Update to Thursday, June 20, 2019 036 Risk, Cost and Cash Compilations, Reviews, and 026 Guide to the Topic 606 Revenue Morning | AA: 4 Management for Controllers and Preparations Recognition Model for all CPAs Financial Managers Tuesday, June 18, 2019 Wednesday, June 19, 2019 031 Developing Your Digital Mindset Friday, June 21, 2019 Afternoon | AA: 4 Morning | AA: 4 Thursday, June 20, 2019 Morning | Other: 4 Morning | Other: 4 022 Gaining a Competitive 027 Surgent’s S Corporation, 037 Forensic Accounting 101 Advantage: Critical Skills for CFOs Partnership, and LLC Tax Update 032 Maximizing Your Social Security Friday, June 21, 2019 and Controllers Wednesday, June 19, 2019 Benefits Morning | AA: 4 Tuesday, June 18, 2019 Afternoon | Tax: 4 Thursday, June 20, 2019 Afternoon | Other: 4 Morning | Tax: 4 038 Select Estate and Life Planning Issues for the Middle-Income Client Friday, June 21, 2019 Morning | Tax: 4

May/June 31 GENERAL CPE SCHEDULE

002 2019 A&A Update for the Real 016 Financial Statements of Nonprofit 025 Controller’s Update: Today’s Latest 047 Interpreting the New Revenue World Organizations: Significant Changes are Trends Recognition Standard: What All CPAs Tuesday, May 14, 2019 Happening Wednesday, June 19, 2019 Need to Know Pelham | AM | AA: 4 Friday, May 17, 2019 Gulf Shores | AM | Other: 4 Monday, August 19, 2019 Montgomery | PM | AA: 4 Dothan | PM | AA: 4 004 2019 Compilation and Review 028 Lean Accounting and Management: Update for the Local Firm 013 Section 199A: Application and Saving Money by Streamlining 042 CFO/Controller series: Soft skills Tuesday, May 14, 2019 Challenges in 2019 Operations in Leadership, Negotiating and Team Pelham | PM | AA: 4 Friday, May 17, 2019 Wednesday, June 19, 2019 Building Montgomery | AM | Tax: 4 Gulf Shores | PM | Other: 4 Monday, August 19, 2019 001 Surgent’s Individual Income Tax Pelham | Full | Other: 8 Update 015 Agricultural and Farm Activities: 024 Surgent’s Individual Income Tax Tuesday, May 14, 2019 Special Rules and New Rules Update 044 K2’s Microsoft Office 365 -- All the Pelham | AM | Tax: 4 Friday, May 17, 2019 Wednesday, June 19, 2019 Things You Need to Know Montgomery | PM | Tax: 4 Gulf Shores | AM | Tax: 4 Monday, August 19, 2019 003 Surgent’s S Corporation, Montgomery | Full | Other: 8 Partnership, and LLC Tax Update LS013 Section 199A: Application and 027 Surgent’s S Corporation, Tuesday, May 14, 2019 Challenges in 2019 Partnership, and LLC Tax Update 041 Critical Issues Involving Taxation Pelham | PM | Tax: 4 Friday, May 17, 2019 Wednesday, June 19, 2019 of Construction Contractors Live Stream | AM | Tax: 4 Gulf Shores | PM | Tax: 4 Monday, August 19, 2019 006 The New Revenue Standard: Dothan | AM | Tax: 4 Speaking a Different Language of LS015 Agricultural and Farm Activities: 030 ASU No. 2016-14: Not-for-Profit Revenue Special Rules and New Rules Financial Reporting 045 Surgent’s Federal Tax Camp Wednesday, May 15, 2019 Friday, May 17, 2019 Thursday, June 20, 2019 Monday, August 19, 2019 Pelham | AM | AA: 4 Live Stream | PM | Tax: 4 Gulf Shores | AM | AA: 4 Pelham | Full | Tax: 8 008 The New Leasing Standard: It’s 017 ASCPA Employee Benefits 034 The 2018 Yellow Book Revision 046 Section 199A: Application and Here and It’s Huge Workshop Thursday, June 20, 2019 Challenges in 2019 Wednesday, May 15, 2019 Thursday, May 23, 2019 Gulf Shores | PM | AA: 4 Monday, August 19, 2019 Pelham | PM | AA: 4 Montgomery | Full | AA: 8 Dothan | PM | Tax: 4 031 Developing Your Digital Mindset 005 Section 199A: Application and LS017 ASCPA Employee Benefits Thursday, June 20, 2019 049 Accounting and Auditing Update Challenges in 2019 Workshop Gulf Shores | AM | Other: 4 Tuesday, August 20, 2019 Wednesday, May 15, 2019 Thursday, May 23, 2019 Dothan | AM | AA: 4 Pelham | AM | Tax: 4 Live Stream | Full | AA: 8 033 Change the Way You Work: Success as a Virtual CFO 051 2019 A&A Update for the Real World 007 Surgent’s Mastering Basis Issues 018 Current Issues in Accounting & Thursday, June 20, 2019 Tuesday, August 20, 2019 for S Corporations, Partnerships, and Auditing: An Annual Update Gulf Shores | PM | Other: 4 Tuscaloosa | AM | AA: 4 LLCs Tuesday, June 18, 2019 Wednesday, May 15, 2019 Gulf Shores | AM | AA: 4 032 Maximizing Your Social Security 052 K2’s Accounting Solutions Pelham | PM | Tax: 4 Benefits Shootout for Small and Mid-Sized 020 Annual FASB Update and Review Thursday, June 20, 2019 Businesses 010 2019 A&A Update for the Real World Tuesday, June 18, 2019 Gulf Shores | AM | Tax: 4 Tuesday, August 20, 2019 Thursday, May 16, 2019 Gulf Shores | AM | AA: 4 Pelham | Full | AA: 8 Montgomery | AM | AA: 4 035 Securing a Comfortable 021 Guide and Update to Compilations, Retirement in the Age of Spending 054 Advanced Concepts in SSARS and 012 2019 Compilation and Review Reviews, and Preparations Thursday, June 20, 2019 Nonattest Services: Are You Certain You Update for the Local Firm Tuesday, June 18, 2019 Gulf Shores | PM | Tax: 4 are in Compliance Thursday, May 16, 2019 Gulf Shores | PM | AA: 4 Tuesday, August 20, 2019 Montgomery | PM | AA: 4 037 Forensic Accounting 101 Pelham | Full | AA: 8 022 Gaining a Competitive Advantage: Friday, June 21, 2019 LS010 2019 A&A Update for the Real Critical Skills for CFOs and Controllers Gulf Shores | AM | AA: 4 058 Preparation, Compilation, and World Tuesday, June 18, 2019 Review Engagements: Update and 036 Risk, Cost and Cash Management Thursday, May 16, 2019 Gulf Shores | PM | Other: 4 Review Live Stream | AM | AA: 4 for Controllers and Financial Managers Tuesday, August 20, 2019 Friday, June 21, 2019 019 Section 199A: Application and Dothan | PM | AA: 4 LS012 2019 Compilation and Review Challenges in 2019 Gulf Shores | AM | Other: 4 Update for the Local Firm Tuesday, June 18, 2019 059 2019 Compilation and Review 038 Select Estate and Life Planning Thursday, May 16, 2019 Gulf Shores | AM | Tax: 4 Update for the Local Firm Live Stream | PM | AA: 4 Issues for the Middle-Income Client Tuesday, August 20, 2019 Friday, June 21, 2019 023 The Essential Multistate Tax Tuscaloosa | PM | AA: 4 009 Surgent’s Individual Income Tax Update Gulf Shores | AM | Tax: 4 Update Tuesday, June 18, 2019 055 Practical Accounting Update for Thursday, May 16, 2019 Gulf Shores | PM | Tax: 4 039 Peer Review Update Course Friday, August 16, 2019 Industry Montgomery | AM | Tax: 4 Tuesday, August 20, 2019 Montgomery | AM | AA: 4 026 Guide to the Topic 606 Revenue Montgomery | Full | AA: 8 011 Surgent’s S Corporation, Recognition Model for all CPAs 040 Financial Reporting for Not-for- Partnership, and LLC Tax Update Wednesday, June 19, 2019 LS055 Practical Accounting Update for Thursday, May 16, 2019 Gulf Shores | AM | AA: 4 Profit Entities Monday, August 19, 2019 Industry Montgomery | PM | Tax: 4 Tuesday, August 20, 2019 Dothan | AM | AA: 4 029 Examining the New Lease Live Stream | Full | AA: 8 014 The New Revenue Standard: Accounting Standard: More than Meets 043 ASCPA’s Fraud Update Speaking a Different Language of the Eye Monday, August 19, 2019 048 Surgent’s Individual Income Tax Wednesday, June 19, 2019 Revenue Pelham | Full | AA: 8 Update Friday, May 17, 2019 Gulf Shores | PM | AA: 4 Tuesday, August 20, 2019 Montgomery | AM | AA: 4 Dothan | AM | Tax: 4

GO TO WWW.ASCPA.ORG FOR NEW CLASSES AND MOST CURRENT INFORMATION.

32 ASCPA Connections GENERAL CPE SCHEDULE

050 Surgent’s Mastering Basis Issues 072 Governmental A&A and Yellow Book LS084 Internal and External Fraud: 092 Basis Calculations & Distributions for S Corporations, Partnerships, and Update Understanding it and Working to for Pass-Thru Entity Owners Schedule LLCs Thursday, August 22, 2019 Control It K-1 Analysis Tuesday, August 20, 2019 Pelham | Full | AA: 8 Monday, August 26, 2019 Tuesday, August 27, 2019 Tuscaloosa | AM | Tax: 4 Live Stream | Full | AA: 8 Huntsville | Full | Tax: 8 070 Construction Contractor’s 053 Surgent’s Individual and Financial- Advanced Issues 079 Agricultural and Farm Activities: 096 Surgent’s S Corporation, Planning Tax Camp Thursday, August 22, 2019 Special Rules and New Rules Partnership, and LLC Tax Update Tuesday, August 20, 2019 Montgomery | Full | AA: 6/Tax: 2 Monday, August 26, 2019 Tuesday, August 27, 2019 Pelham | Full | Tax: 8 Auburn | AM | Tax: 4 Auburn | PM | Tax: 4 071 Fiduciary Accounting and Tax 056 Section 199A: Application and Issues of Estates and Trusts 082 Federal Individual Income Tax 100 2019 Compilation and Review Challenges in 2019 Thursday, August 22, 2019 Update Update for the Local Firm Tuesday, August 20, 2019 Pelham | Full | AA: 4/Tax: 4 Monday, August 26, 2019 Wednesday, August 28, 2019 Tuscaloosa | PM | Tax: 4 Mobile | Full | Tax: 8 Mobile | Full | AA: 8 073 Practical Planning Boot Camp: S 057 Surgent’s S Corporation, Corporations & LLCs 083 Tax Cuts & Jobs Act - QBI Deduction 102 Not for Profit A&A Update Partnership, and LLC Tax Update Thursday, August 22, 2019 & TCJA Update Wednesday, August 28, 2019 Tuesday, August 20, 2019 Montgomery | Full | Tax: 8 Monday, August 26, 2019 Montgomery | Full | AA: 8 Dothan | PM | Tax: 4 Huntsville | Full | Tax: 8 LS070 Construction Contractor’s 103 Fraud Update: Detecting and 061 What You Need to Know About Advanced Issues 086 Section 199A: Application and Preventing the Top Ten Fraud Schemes the Revenue Recognition and Leasing Thursday, August 22, 2019 Challenges in 2019 Wednesday, August 28, 2019 Standards Live Stream | Full | AA: 6/Tax: 2 Monday, August 26, 2019 Huntsville | Full | AA: 8 Wednesday, August 21, 2019 Auburn | PM | Tax: 4 Tuscaloosa | AM | AA: 4 075 Revenue Recognition, Leases, and 098 K2’s Advanced Excel Financial Instruments: The FASB’s “Big 089 What You Need to Know About Wednesday, August 28, 2019 062 ASCPA’s Community Banking Three” New Standards the Revenue Recognition and Leasing Huntsville | Full | AA: 4/Other: 4 Update Friday, August 23, 2019 Standards Wednesday, August 21, 2019 Pelham | Full | AA: 8 Tuesday, August 27, 2019 099 K2’s Business Intelligence, Pelham | Full | AA: 8 Auburn | AM | AA: 4 Featuring Microsoft’s Power BI Tools 077 Not for Profit A&A Update Wednesday, August 28, 2019 066 Accounting, Audit, and Attest Friday, August 23, 2019 091 Annual Update and Practice Issues Mobile | Full | Other: 8 Update for Practitioners with Small- Pelham | Full | AA: 8 for Preparation, Compilation, and 101 Securing a Comfortable Retirement Business Clients Review Engagements Wednesday, August 21, 2019 074 Analytics and Big Data for Tuesday, August 27, 2019 in the Age of Spending Wednesday, August 28, 2019 Pelham | Full | AA: 8 Accountants Huntsville | Full | AA: 8 Friday, August 23, 2019 Montgomery | Full | Other: 4/Tax: 4 068 Financial Statements of Nonprofit Montgomery | Full | Other: 8 093 Internal Control Development That LS101 Securing a Comfortable Organizations: Significant Changes are Balances Risk with Strategy LS074 Analytics and Big Data for Tuesday, August 27, 2019 Retirement in the Age of Spending Happening Wednesday, August 28, 2019 Wednesday, August 21, 2019 Accountants Montgomery | Full | AA: 8 Friday, August 23, 2019 Live Stream | Full | Other: 4 Tax: 4 Tuscaloosa | PM | AA: 4 Live Stream | Full | Other: 8 094 Governmental A&A and Yellow 106 Governmental and Not for Profit 063 Advanced Controller/CFO Skills Book Update Wednesday, August 21, 2019 076 Employer’s Handbook: Legal, Tax, Tuesday, August 27, 2019 A&A Update Thursday, August 29, 2019 Montgomery | Full | Other: 8 and Healthcare Issues Montgomery | Full | AA: 8 Friday, August 23, 2019 Huntsville | Full | AA: 8 060 Surgent’s Individual Income Tax Montgomery | Full | Other:5/Tax: 3 095 K2’s Small Business Internal 107 2019 A&A Update for the Real World Update Controls, Security, and Fraud Prevention Thursday, August 29, 2019 Wednesday, August 21, 2019 078 Sales and Use Tax Workshop Friday, August 23, 2019 and Detection Mobile | Full | AA: 8 Tuscaloosa | AM | Tax: 4 Tuesday, August 27, 2019 Pelham | Full | Tax: 8 Mobile | Full | AA: 8 105 K2’s Budgeting and Forecasting 064 Partnership and LLC Core Tax 080 2019 A&A Update for the Real Tools and Techniques Issues from Formation Through 097 Financial Statements of Nonprofit World Thursday, August 29, 2019 Liquidation Monday, August 26, 2019 Organizations: Significant Changes are Huntsville | Full | AA: 4/Other: 4 Wednesday, August 21, 2019 Auburn | AM | AA: 4 Happening Pelham | Full | Tax: 8 Tuesday, August 27, 2019 108 Controller’s Update: Today’s Latest 081 Governmental and Not for Profit Auburn | PM | AA: 4 Trends 065 Surgent’s Federal Tax Camp Thursday, August 29, 2019 Wednesday, August 21, 2019 A&A Update Monday, August 26, 2019 LS094 Governmental A&A and Yellow Mobile | Full | Other: 8 Montgomery | Full | Tax: 8 Mobile | Full | AA: 8 Book Update Tuesday, August 27, 2019 104 Buying and Selling a Business: 067 Surgent’s S Corporation, 084 Internal and External Fraud: Live Stream | Full | AA: 8 Critical Tax and Structuring Issues Partnership, and LLC Tax Update Thursday, August 29, 2019 Wednesday, August 21, 2019 Understanding it and Working to 088 Surgent’s Individual Income Tax Montgomery | Full | Tax: 8 Tuscaloosa | PM | Tax: 4 Control It Monday, August 26, 2019 Update Tuesday, August 27, 2019 Montgomery | Full | AA: 8 LS104 Buying and Selling a Business: LS065 Surgent’s Federal Tax Camp Auburn | AM | Tax: 4 Wednesday, August 21, 2019 Critical Tax and Structuring Issues 085 Accounting and Auditing Update Thursday, August 29, 2019 Live Stream | Full | Tax: 8 090 Federal Business Income Tax for Small Businesses Live Stream | Full | Tax: 8 Update 069 Advanced Audits of 401(k) Monday, August 26, 2019 Tuesday, August 27, 2019 109 Becoming an AICPA Peer Review Plans: Best Practices and Current Huntsville | Full | AA: 8 Mobile | Full | Tax: 8 Team or Review Captain: Case Study Developments Thursday, August 22, 2019 087 2019 Compilation and Review Application Thursday, September 12, 2019 Pelham | Full | AA: 8 Update for the Local Firm Monday, August 26, 2019 Montgomery | Full | AA: 8 Auburn | PM | AA: 4

GO TO WWW.ASCPA.ORG FOR NEW CLASSES AND MOST CURRENT INFORMATION.

May/June 33 GENERAL CPE SCHEDULE

110 GASB Update 131 GASB Update 134 Introduction to Blockchain 151 Introduction to Blockchain Tuesday, September 17, 2019 Wednesday, September 18, 2019 Thursday, September 19, 2019 Friday, September 20, 2019 Huntsville | AM | AA: 4 Pelham | PM | AA: 4 Pelham | AM | Other: 4 Huntsville | PM | Other: 4 111 Ethics & Professional Conduct: LS121 LIVE STREAM - K2’s Excel Financial 136 K2’s Securing Your Data 149 Sirote’s Hottest Tax Topics Updates and Practical Applications Reporting and Analysis Thursday, September 19, 2019 Friday, September 20, 2019 Tuesday, September 17, 2019 Wednesday, September 18, 2019 Montgomery | AM | Other: 4 Pelham | AM | Tax: 4 Pelham | AM | AA: 4 Live Stream | Full | AA: 8 140 Cybersecurity Risk Fundamentals 155 R&D Credits 115 What You Need to Know About the 124 Developing Your Digital Mindset Risk Fundamentals Friday, September 20, 2019 Changes to Yellow Book and Uniform Wednesday, September 18, 2019 Thursday, September 19, 2019 Pelham | PM | Tax: 4 Guidance Update Pelham | AM | Other: 4 Pelham | PM | Other: 4 Tuesday, September 17, 2019 157 A&A for Tax People Who Hate A&A Tuesday, September 24, 2019 Huntsville | PM | AA: 4 128 Change the Way You Work: 142 K2’s Emerging Technologies for Success as a Virtual CFO Accountants, Including Blockchain and Mobile | AM | AA: 4 117 Financial Reporting for Not-for- Wednesday, September 18, 2019 Cryptocurrency 159 Nontraditional Services and Other Profit Entities Pelham | PM | Other: 4 Thursday, September 19, 2019 Tuesday, September 17, 2019 Montgomery | PM | Other: 4 Methods of Making a Living Tuesday, September 24, 2019 Pelham | PM | AA: 4 122 Federal Income Taxation of Estates and Trusts Update 133 Section 199A: Application and Mobile | PM | AA: 4 112 Controller’s Update: Today’s Latest Wednesday, September 18, 2019 Challenges in 2019 158 This Year’s Top Tax and Financial- Trends Montgomery | Full | Tax: 8 Thursday, September 19, 2019 Tuesday, September 17, 2019 Huntsville | AM | Tax: 4 Planning Ideas Tuesday, September 24, 2019 Pelham | AM | Other: 4 125 Select Estate and Life Planning Issues for the Middle-Income Client 138 Surgent’s Top Five Tax Topics This Mobile | AM | Tax: 4 116 Lean Accounting and Management: Wednesday, September 18, 2019 Year 160 The Top Five Tax Issues in Dealing Saving Money by Streamlining Huntsville | AM | Tax: 4 Thursday, September 19, 2019 Pelham | AM | Tax: 4 with LLCs and Partnerships Operations Tuesday, September 24, 2019 Tuesday, September 17, 2019 127 Critical Issues Involving Taxation Mobile | PM | Tax: 4 Pelham | PM | Other: 4 of Construction Contractors 139 Limited Liability Companies: Wednesday, September 18, 2019 Losses, Liquidations, Terminations, 162 The New Revenue Standard: 113 Securing a Comfortable Retirement Pelham | AM | Tax: 4 Continuations, and Sales Speaking a Different Language of in the Age of Spending Thursday, September 19, 2019 Tuesday, September 17, 2019 130 Maximizing Your Social Security Huntsville | PM | Tax: 4 Revenue Wednesday, September 25, 2019 Huntsville | AM | Tax: 4 Benefits Wednesday, September 18, 2019 144 Real Estate Taxation: Critical Mobile | AM | AA: 4 114 IRS Tax Examinations and Hot Huntsville | PM | Tax: 4 Consideration 163 The New Leasing Standard: It’s Issues Thursday, September 19, 2019 Tuesday, September 17, 2019 132 Four Tiers of Loss Limitations: Pelham | PM | Tax: 4 Here and It’s Huge Wednesday, September 25, 2019 Pelham | AM | Tax: 4 A guide to the New Rules for Pass- Through Entities 145 The Bottom Line on the New Lease Mobile | PM | AA: 4 118 Navigating the Tax Cuts and Jobs Wednesday, September 18, 2019 Accounting Requirements 161 Section 199A: Application and Act: Law and Planning Issues Pelham | PM | Tax: 4 Friday, September 20, 2019 Tuesday, September 17, 2019 Huntsville | AM | AA: 4 Challenges in 2019 Wednesday, September 25, 2019 Montgomery | Full | Tax: 8 135 Financial Reporting for Not-for- Profit Entities 147 K2’s Testing and Auditing Excel Mobile | AM | Tax: 4 119 Key Partnership and S Corporation Thursday, September 19, 2019 Workbooks 164 Select Estate and Life Planning Tax Planning Strategies Huntsville | AM | AA: 4 Friday, September 20, 2019 Tuesday, September 17, 2019 Pelham | AM | AA: 4 Issues for the Middle-Income Client Wednesday, September 25, 2019 Huntsville | PM | Tax: 4 137 A&A for Tax People Who Hate A&A Thursday, September 19, 2019 148 The New Revenue Standard: Mobile | PM | Tax: 4 120 S Corporation Taxation: Advanced Pelham | AM | AA: 4 Speaking a Different Language of 166 Financial Statements of Nonprofit Issues Revenue Tuesday, September 17, 2019 141 Audit Workpapers: Documenting Friday, September 20, 2019 Organizations: Significant Changes are Pelham | PM | Tax: 4 Field Work Pelham | AM | AA: 4 Happening Thursday, September 19, 2019 Thursday, September 26, 2019 LS118 Tax, Financial, and Estate Huntsville | PM | AA: 4 152 Interpreting the New Revenue Mobile | AM | AA: 4 Planning Strategies Under the Trump Recognition Standard: What All CPAs 143 2019 Compilation and Review 168 Fraud Update Administration Need to Know Thursday, September 26, 2019 Tuesday, September 17, 2019 Update for the Local Firm Friday, September 20, 2019 Thursday, September 19, 2019 Mobile | PM | AA: 4 Live Stream | Full | Tax: 8 Huntsville | PM | AA: 4 Pelham | PM | AA: 4 165 Risk, Cost and Cash Management 121 K2’s Excel Financial Reporting and 153 K2’s Advanced Excel Reporting 150 Governmental A&A Update Friday, September 20, 2019 for Controllers and Financial Managers Analysis Thursday, September 19, 2019 Thursday, September 26, 2019 Wednesday, September 18, 2019 Pelham | PM | AA: 4 Montgomery | AM | AA: 4 Mobile | AM | Other: 4 Montgomery | Full | AA: 8 154 The New Leasing Standard: It’s 156 Not for Profit A&A Update 167 Financial Forecasting: Planning for 123 A&A for Tax People Who Hate A&A Thursday, September 19, 2019 Here and It’s Huge Wednesday, September 18, 2019 Friday, September 20, 2019 Success Montgomery | PM | AA: 4 Thursday, September 26, 2019 Huntsville | AM | AA: 4 Pelham | PM | AA: 4 Mobile | PM | Other: 4 LS150 Governmental A&A Update 126 Compliance Testing for Single 146 Controller’s Update: Today’s Latest Thursday, September 19, 2019 169 The Best Federal Tax Update Audits Live Stream | AM | AA: 4 Trends Wednesday, September 18, 2019 Friday, September 20, 2019 Course by Surgent Thursday, January 09, 2020 Pelham | AM | AA: 4 Huntsville | AM | Other: 4 LS156 Not for Profit A&A Update Pelham | Full | Tax: 8 Thursday, September 19, 2019 129 2019 Compilation and Review Live Stream | PM | AA: 4 Update for the Local Firm Wednesday, September 18, 2019 Huntsville | PM | AA: 4

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