INSIGHT Magazine - July 2009

searchinvestor

Businesses get

creative in their

hunt for ever-

elusive funding

In this issue

Make your investmentsrecession-proof

Nonprofits struggle in a down economy

Overseas assignmentsjet propel careers

Twitters, blogs and Facebooks hit the office

Supply chain musclewrestles hard times

Women in publicaccounting hit theglass ceiling

Get creative to save on training dollars

Find a new definitionfor recession erasuccess

Tax changes impact US small businesses

Ira Solomon CPA, PhDtakes a bow

The Magazine of the Illinois CPA Society www.icpas.org/insight.htm | July 2009

indexJuly 2009 Vol.58 No. 8

www.icpas.org /insight.htm

features

columns

regulars

30 Desperately Seeking InvestorsBy Sheryl Nance-Nash

Businesses are searching high and low for scarce investment dollars.

34 Capital ConscienceBy Derrick Lilly

Nonprofits are feeling the pinch.

38 Recession-proof InvestmentsBy Carolyn Tang

We’ve seen the collapse of glorified investment houses, government

takeovers of bereft corporations and a steep downturn in the

markets...Given these conditions, the question of where to put your

investment dollars is a heady one.

6 The Chair Lee A. Gould, CPA/ABV, JD, CFE, CFFIncoming Society Chairperson Lee A. Gould shares his hopes and

aspirations for the year ahead.

12 Career Jet SetBy Cecily O’Connor

Working abroad can fast-track you to the top.

14 Technology TwitterblogiverseBy Allison Enright

Can you social network your way to business success?

16 Supply Chain Heavy LiftingBy Selena Chavis

Build a strong supply chain to wrestle a weak economy.

20 Diversity Accounting WomenBy ICPAS Women’s Executive Committee

Why hasn’t anything significantly changed for women in public

accounting leadership roles?

24 Development Goodbye Training Program?By Renee Beckman, CPA

Don’t bid adieu to your staff development dollars quite yet. Find

budget-friendly training alternatives instead.

26 Strategy Set the StandardBy Dean K. Matt, CPA

How do you define success in an uncertain economy?

28 Tax Small Biz, Big ImpactBy Harvey Coustan, CPA

Tax act provisions could mean significant changes for the nation’s

small businesses.

4 First Word

8 Seen+Heard

42 Classifieds

Garelli Wong and Jackson Wabash are Chicagoland’s experts in financial recruiting and staffing.

Our team unites employers with the right accounting and finance talent for direct hire, temporary and consulting assignments. We look and listen beyond the job description to combine the right skills with the desired experience. To learn more about our dedication to finding the right fit, visit us on the web or call your local office.

Great Clients Great Candidates

Great Fit

Chicago Schaumburg Oakbrook Terrace 312.583.9264 847.397.9700 630.792.1660

WWW.GARELLIWONG.COM WWW.JACKSONWABASH.COM

The economy tanked, the stock market crashed,

the unemployment rate soared, the real estate

sector collapsed. Bernard Madoff was caught in

the biggest Ponzi scheme in recent history and major

banks and investment firms with distinguished names and

records of success disappeared overnight. Other than that,

Mrs. Lincoln…it was a quiet year.

Despite the historic and tumultuous year, with its economic

turbulence and significant impact on savings and invest-

ments, I am gratified to report that the Illinois CPA Society

ends its own fiscal year on solid ground, bolstered by its

strong leadership, active membership and professional commitment to serving the CPA community

and the public at large.

Under the impressive leadership of Sheldon Holzman, the ICPAS calmly navigated through the

year, serving the needs of our members in a rapidly changing business environment. We devel-

oped programs to address the increasing number of members who found themselves facing career

transitions in uncertain times. Our Town Hall forums around the state saw increased turnout as

members were anxious to stay up-to-speed on professional issues and to maintain contact with

professional colleagues.

The media turned to the ICPAS for assistance in unraveling the economic complexity of the world

around us. From the President’s economic stimulus plan to the Governor’s budget proposal, the

media now seeks ICPAS members to provide the context, quotes and background to make sense

of financial developments and the day-to-day world around them.

The emerging issue of International Financial Reporting Standards captured the attention of the CPA

profession this year. The ICPAS provided programs and resources to help our members get up-to-

speed on the wide range of issues corresponding to IFRS. Our public service efforts increased this

year, as CPA members gave their time and expertise to assist people in critical need of financial assis-

tance, from flood victims in Iowa to military personnel and their families around the state. The ICPAS

also continued its outreach to students and young professionals, to engage them in service and social

networking opportunities that will keep them connected to their professional community and ensure

a future pipeline of smart, savvy CPAs in coming years. Our government affairs team worked hard

to advocate on behalf of Illinois CPAs and finance professionals, leading our efforts in both Spring-

field and Washington, D.C.

While the economy dominated our thoughts and activities in recent months, I believe the ICPAS ends

the fiscal year on a positive note. Membership is up slightly over last year. Our operational budget

stayed the course. The student pipeline into the profession remains robust. Our members continue

to give their time and talents to serving the ICPAS even while their day-to-day work lives get tougher

and their own workforce challenges get greater. Make no mistake. The past year has been rough. The

year ahead looks to be challenging. But the ICPAS is prepared to meet the challenge.

Today you can link-in, twitter, friend us or just show up at an old-fashioned seminar. The ICPAS

stands ready to serve. In a very tough year, I want to thank the staff and the volunteer leadership for

stepping up to the plate and serving the CPA community with energy, expertise and enthusiasm.

Elaine Weiss, JD, ICPAS President & CEO

4 INSIGHT www.icpas.org/insight.htm

FIRST WORD

PublisherICPAS President & CEO

Elaine Weiss, JD

Editor-in-ChiefPublications Director

Judy Giannetto

Creative Services Director Gene Levitan

Creative Services ManagerRosa Garcia

Publications SpecialistDerrick Lilly

National Sales & Advertising Stephanie Bunsick The YGS Group

1808 Colonial Village Lane Lancaster, PA 17601

Phone: 1.800.501.9571, ext. 137 Fax: 1.717.390.9891

[email protected]

Information Systems ManagerJim Jarocki

[email protected]

Editorial Office550 W. Jackson Blvd., Suite 900,

Chicago, IL 60661INSIGHT is the official magazine of the Illinois CPA Society,550 W. Jackson, Suite 900, Chicago, IL 60661, USA. Itspurpose is to serve as the primary news and informationvehicle for some 23,000 CPA members and professionalaffiliates. Statements or articles of opinion appearing inINSIGHT are not necessarily the views of the Illinois CPASociety. The materials and information contained withinINSIGHT are offered as information only and not aspractice, financial, accounting, legal or other professionaladvice. Readers are strongly encouraged to consult with anappropriate professional advisor before acting on theinformation contained in this publication. It is INSIGHT’spolicy not to knowingly accept advertising that discriminateson the basis of race,religion, sex, age or origin. The IllinoisCPA Society reserves the right to reject paid advertising thatdoes not meet INSIGHT’s qualifications or that may detractfrom its professional and ethical standards. The Illinois CPASociety does not necessarily endorse the non-Societyresources, services or products that may appear or bereferenced within INSIGHT, and makes no representationor warranties about the products or services they mayprovide or their accuracy or claims. The Illinois CPA Societydoes not guarantee delivery dates for INSIGHT. The Societydisclaims all warranties, express or implied, andassumes no responsibility whatsoever for damagesincurred asa result of delays in delivering INSIGHT.INSIGHT (ISSN-1053-8542) is published bimonthly exceptmonthly in July and August by the Illinois CPA Society,550 W. Jackson, Suite 900, Chicago, IL 60661, USA, 312.993.0393 or 800.993.0393, fax 312.993.0307.Subscription price for non-members: $30 U.S., $40 Canadaand International addresses, $42 Mexico. Copyright© 2009. No part of the contents may be reproduced by anymeans without the written consent of INSIGHT. Permission requests may be sent to: Editorial Director, at the addressabove. Periodicals postage paid at Chicago, IL and at addi-tional mailing offices. POSTMASTER: Send address changesto: INSIGHT, Illinois CPA Society, 550 W. Jackson, Suite900, Chicago, IL 60661, USA.

INSIGHT AWARDS2008 Apex Award, Magazine & Journal Writing

2007 Magnum Opus Award, Best All-aroundAssociation Publication

2006 Apex Award, Magazines & Journals

2006 Apex Award, Magazine & Journal Writing

2004 Apex Award, Magazines & Journals



2002 Chicago Women in Publishing ExcellenceAward, Writing/Editing

2001 Apex Award, Feature Writing

2001 Apex Award, Best Redesigns


2000 Apex Award, Best Rewrites

We value your membership.

The Illinois CPA Society...

experience theadvantage.

Was it simply an

oversight?Renew your Illinois CPA SocietyMembership Today.

During these tough economic times,it’s more important than ever to stayconnected to your profession.

Your Illinois CPA Society membership provides you:

> Free or low-cost monthly career events

> Local, affordable, high-quality CPE

> Member Buying Advantage discount programs

> Publications such as INSIGHT magazine,CCFL NewsFlash, Practice Advantage and HYPE

Don’t risk losing these and other valuablemember benefits. RENEW ONLINE atwww.icpas.org or call 800-993-0393.


I t is with great pride and respect for those who haveheld this position before me that I embark on myyear as chair of the Illinois CPA Society.

When I began my professional career as a youngauditor (and, might I add, naïve; but, of course, witha dose of healthy skepticism imbedded in me by myauditing professors at the University of Illinois), I haddreams and ambitions of a career in public account-ing as an auditor. Although my career path has dra-matically changed from my initial years in publicaccounting (for those whom I have not yet had theprivilege to meet, I am now on the consulting side ofthe profession), I am an auditor at heart and remain avery proud CPA.

As a longtime member of the Illinois CPA Society, I value all that I have learned as a volun-teer on various Society committees and special interest groups, and during my tenure as aBoard member. As a result of these contributions, I have learned how the Illinois CPA Soci-ety affects and enriches our profession.

Although the ICPAS strives to proactively meet the needs of our membership, and is one ofthe most respected contributing state societies to the AICPA, we need to continue to grow andevolve. To accomplish that end, the Board of Directors and the ICPAS undertook a Board Gov-ernance initiative that began three years ago. The initiative’s purpose is to align the ICPASwith the best practices in nonprofit governance, and create a strategic mission-focusedagenda. Our focus includes, among other goals and objectives, to:

n Anchor and align the Society with its mission (“Enhancing the Value of the CPA Profession”)and ends policies (which describe the results the Society strives to accomplish in supportof its mission).

n Strengthen and grow not only our membership but also the involvement of all of ourmembers, especially our young professionals (our future leaders).

n Maintain and enhance services to our valued membership.n Embrace and nurture the growth of diversity within the profession and the Society.

As a result of this focus, as well as the many other initiatives undertaken by the ICPAS on ourbehalf, I am very excited about the direction in which the ICPAS is headed.

The initiatives undertaken by the ICPAS are far too numerous to list in these brief remarks, butneedless to say, their impact has been extremely positive. However, I believe we must con-tinue to improve and enhance the value of all CPAs. Part of that goal—the need to increasethe diversity of our membership and persuade a wide range of minorities to join our nobleranks—remains a priority. I am proud of the ICPAS’ outreach programs and initiatives currentlyin place, and am deeply pleased with and excited about the diversity initiatives currentlybeing developed in partnership with the CPA Endowment Fund.

I look forward to beginning my year as chair. Although I believe that the ICPAS will continue tomake a positive impact on the profession, I encourage you to provide input and guidance onhow we can better serve you.

To the numerous CPAs that I am already acquainted with, I hope to see you in attendance atone of several Society Town Hall Forums, conferences or seminars. I am eager to hear aboutwhat your CPA means to you and how we can further its value for you. To those of you whomI have not yet met, I look forward to meeting you to learn your personal story, and what beinga CPA means to you.

THE CHAIR

Lee A. Gould, CPA/ABV, JD, CFE, CFF, ICPAS Chairperson

ICPAS OFFICERS

Chairperson, Lee A. Gould,

CPA/ABV, JD, CFE, CFF

Gould & Pakter Associates LLC

Vice Chairperson, Sara J. Mikuta, CPA

The Leaders Bank

Secretary, Charles F. G. Kuyk III, CPA

Crowe Horwath and Company LLP

Treasurer, Robert E. Cameron, CPA

Cameron Smith & Company PC

Immediate Past Chairperson,

Sheldon P. Holzman, CPA, CFE, CFF

Baker Tilly Virchow Krause, LLP

ICPAS BOARD

OF DIRECTORS

Brent A. Baccus, CPA

Washington Pittman & McKeever

Therese M. Bobek, CPA

PricewaterhouseCoopers LLP

William P. Graf, CPA

Deloitte & Touche LLP

Kelly J. Grier, CPA

Ernst & Young LLP

Cara C. Hoffman, CPA

Blackman Kallick LLP

James P. Jones, CPA

Edward Don & Company

Charlotte A. Montgomery, CPA

Illinois State Museum

Elizabeth A. Murphy, PhD

DePaul University

Annette M. O’Connor, CPA

RR Donnelley & Sons Company

Michael J. Pierce, CPA

RSM McGladrey Inc.

Marian Powers, PhD

Northwestern University

Daniel F. Rahill, CPA

KPMG LLP

Lawrence H. Shanker, CPA

Shanker Valleau Accountants Inc.

Edward H. Stassen, CPA

Recycled Paper Greetings Inc.


SEEN HEARDNEWS BYTES, SOUND ADVICE AND PRACTICAL BUSINESS TIPS

1.5 millionThe number of accountants and auditorswho will be employed in the UnitedStates by 2016.Source: Bureau of Labor Statistics, Occupational

Outlook Handbook, 2008-09 Edition

Recession Changes Accountant’s RoleWhile the US Bureau of Labor Statistics continues to report month-over-month joblosses, accountants still see a strong job market due to International FinancialReporting Standards (IFRS), the Economic Stimulus Package and the overall need forfinancial analysis, budgeting and forecasting during the recession. Their responsibil-ities, however, are changing.

Ajilon Finance polled 688 finance and accounting professionals as part of the Instituteof Management Accountants' Inside Talk Webinar Series, to gauge how the currenteconomy is impacting jobs, companies and the accounting profession. According tothe survey, 75 percent feel that the recession has changed their on-the-job responsibil-ities, with 59 percent citing more time spent on cost-cutting initiatives. Twenty-sevenpercent cited more time spent on risk assessment, a further 27 percent cited providingfinancial advice to their companies, and 9 percent cited a focus on regulatory work.

In the face of these changes, Ajilon offers finance professionals these tips:

1. Stay focused. It’s easy to lose sight of the most important task—fostering andgrowing business profitability. Finance managers should work closely with all stakehold-ers and anticipate their needs in the current economy.

2. Follow the stimulus. Company leaders should think about how this capital infu-sion will affect their company's business, in order to better prepare for market changes.

3. Pay at tention to TARP. Companies should review their accounting and legalteams to ensure they have the necessary talent to handle increased government regu-lation should their business participate in the Troubled Asset Relief Program (TARP).

4. Reduce carbon footprints. An easy way to trim costs is to reduce office energyusage. Significant cost savings can be realized by turning off office equipment at nightand switching off unnecessary lighting.

For more information, visit www.ajilon.com.

IFRS Inspires Mixed FeelingsGrant Thornton LLP’s national survey of CFOs and senior comptrollers from publicand private entities reveals that 49 percent believe US companies should be permit-ted to use IFRS instead of US GAAP for filing financial statements with the SEC. Theremaining 51 percent, however, sits on the other side of the fence. Given the choice,40 percent would choose to never use IFRS, while the rest are looking to bide timebefore implementation. Twenty percent said they would start using IFRS in 2011, 19percent would prefer to start using IFRS some time after 2016, and another 18 per-cent favor 2014.

Visit www.grantthornton.com for more.

$11.6 billionCompensation earned by the top 25 hedge fund managers in 2008. Source: Institutional Investor/Alpha Magazine

The World’s Top 10 Business RisksLate last year, Aon began surveying business leaders from 40 countries in 31 industries todetermine the world’s greatest emerging and escalating business risks. The recently releasedDefinitive Report on Risk – Aon’s 2009 Global Risk Management Survey reveals that the top10 most pressing risks are: 1. The economic slowdown. 2. Regulatory/legislative changes.3. Business interruption. 4. Increasing competition. 5. Commodity price risk. 6. Damage toreputation. 7. Cash flow/liquidity risk. 8. Distribution or supply chain failure. 9. Third-partyliability. 10. Failure to attract or retain top talent.

For more on the survey, visit www.aon.com.

www.icpas.org/insight.htm July 2009 9

The best and brightest interns

are at your fingertips.

The Illinois CPA Society has made iteasier than ever to identify the up andcomers in the accounting profession.Just visit the Illinois CPA Society’sCareer Center and search studentresumes to fill your next internship.

All across the state, Illinois CPA Societystudent members have uploaded theirresumes for you to view online. Thesestudents represent the future of theprofession and your guidance as aseasoned member of the professioncan put them on the right track. Thesestudents are available for summer, fallor spring internships.

Search by variouscriteria, including:

Geographic Location

Timeframe

Paid or College Credit Internships

Visit www.icpas.organd click on the Career Center.

Question Your Way to SuccessAccording to the Gallup Organization, determining why one organization, division, depart-ment or any other managerial unit is happier and more profitable than another comes downto the answers to these 12 questions:

1. Does everybody know what is expected of them? 2. Do they have the materials and equipment they need to do the work correctly? 3. Do team members have the opportunity to do what they do best every day? 4. In the last seven days, have they received recognition or praise for good work? 5. Does their manager, or someone else in the team, care about each individual as a person? 6. Does every person in the team have someone who encourages his or her development? 7. Does everybody's opinion in the team seem to count? 8. Is the company’s mission explained in such a way that the team feels its work is important?9. Are all the people in the team visibly committed to doing quality work?10. Does everybody in the team have a best friend at work?11. In the last six months, has the manager talked to each team member about progress?12. Does every person have the opportunities to learn and grow at work?The questions and their ability to analyze managerial performance are documented in FirstBreak all the Rules, by Marcus Buckingham (Simon & Schuster, 1999). [Source: Coaching forLeadership, coachingleadership.blogspot.com].

Worries Linger Among Real Estate CFOs A recent Grant Thornton LLP survey of 28 CFOs and senior comptrollers from public and private companies in the real estate industry reveals that 93 percent expect commercial realestate values to continue their decline through the year. What’s worse, 63 percent report thattheir property tax assessments have continued to increase during the past three years.

Adding to the glum outlook is the fact that more than four-out-of-five (82 percent) real estateCFOs believe the US economy will remain in a recession through the end of the year; 75 per-cent expect it to remain the same or get worse during the next six months; and 39 percentexpect layoffs at their companies.Facing pricing pressures themselves, 71 percent of real estate CFOs are concerned about thecost of employee benefits, while 74 percent are cutting costs by not giving raises this year andrefining and streamlining processes.For more on the survey, visit www.grantthornton.com.

90 millionThe number of tax returns filed electronically this year; a new record,led by a big increase in people using home computers.Source: Internal Revenue Service


51 percentDecline in Q1 2009 IPOs compared to Q1 2008.

Source: Ernst & Young US IPO Pipeline study

Fast Track Back to the Manager’s SeatIn a recent Robert Half Management Resources survey, executivespolled felt that, on average, a senior manager could be out of workfor nine months before his or her career prospects were adverselyaffected. If nine months seems too long a stretch, however, these fivetips may help to speed the process.

1. Be flexible. Explore ways to apply your expertise in new areasand highlight your transferable skills.2. Network ef fect ively. Make sure your network includes peo-ple both inside and outside of your industry, and at various experi-ence levels. Networking websites like LinkedIn can extend yourreach even further.3. Know the company. The more you can find out about a busi-ness’ strengths, weaknesses and corporate culture, the better you cantailor your resume to fit its needs.4. Consider relocating. Be open to opportunities in other cities orstates, particularly if your skills are highly specialized or few job open-ings exist locally.5. Stay positive. Finding a management position can take longerthan you expect, simply because there are fewer positions currentlyavailable. Try not to be discouraged, however, since you’ll wear awaythe very confidence you’ll need to win over recruiters. For more information, visit www.rhi.com.

Correct ion: Please note that in the May/June 2009 edition’s CuttingRoom article, Crowe Chizek should have appeared as Crowe Horwath.Also, Mike Hillgameyer was intended to appear as Mike Hillgamyer.

Obama’s 2010 Budget & IllinoisUnder President Barack Obama’s 2010 budget, which strives to create jobs and boost the economy, Illinois will see a range of changesin healthcare, education, veteran affairs and infrastructure funding.Highlights include:

n Tax cuts for 4.8 million families.n $17.5 billion in small biz loan guarantees to get credit flowing.n $4.5 billion in new funding for Pell Grants to help families pay

rising college fees.n $1.2 billion for schools, students and teachers.n A 2.9-percent pay raise for the 47,900 men and women in Illinois

serving in our Armed Forces.n The establishment of a national Infrastructure Bank to fund Illinois

infrastructure projects.n A $76.6 million investment in the federal HOME program.

n $63.3 million for the Housing Choice Voucher program to help Illinois families find affordable, good quality places to live.

n $643.9 million for state and local student achievement initiativesin low-income areas.

n $119.1 million for teacher and principal training and recruitmentefforts in high-need school districts.

n $12.4 million for the state’s School Breakfast program and $55million for its School Lunch program.

Source: WhiteHouse.gov.

Higher Pay is the Way to PlayOverall, an increase in salary is the most popular means of compen-sation among 2,000 senior executives and managers, according toa worldwide NFI Research survey. The next most popular method isperformance-based bonuses (16 percent), closely followed by morevacation time (15 percent). Almost half (49 percent) of respondentsat large companies rank salary increases top, compared to 38 per-cent at small companies.

Visit NFIResearch.com for more survey results.

member buying advantage program

save m neyon the products and services

you use every day.

A BENEFIT OF YOUR ILLINOIS CPA SOCIETY MEMBERSHIP

30% member discount on tax and accounting books. Email: http://tax.cchgroup.com/members/icpas (Enter member discount code: Y6202)

Discounts on products and services. Phone: 800.325.7000

Up to 15% off on auto insurance and 10% on home insurance. Call today for your no-obligation rate quote! Be sure to mention group #3408. Phone: 800.835.0894

Special group discounts on life, disability, major medical and liability plans.Phone: 800.323.2106 (liability) or 800.842.ICPA (medical & life plans)

Offering more than 65,000 products at competitive prices.Phone: Wanda Brooks: 708.969.5355 | Email: [email protected]

Competitive loan rates and dividends, and access to a diverse line of products and services.Phone: 800.328.1935 | Web: www.alliantcreditunion.org/ilcpa

Earn points and get rewards you want, with a no annual fee Platinum Plus MasterCard.Phone: 866.438.6262 | Apply Online: www.bankofamerica.com/creditcards

Complete administration of 125 Cafeteria Plan. 10% off of enrollment and administrative fees.Phone: 800.422.4661, press 7

Provides effective and ethical solutions for collecting debts and improving cash flow. Phone: 800.279.3511 | Web: www.icmemberbenefits.com


CAREER

Jet SetWorking abroad can fast-track you to the top.

By Cecily O’Connor

In 2003, Alan Jagiello was offered a posi-tion at Deloitte’s Brussels office to servethe needs of various large European

manufacturing clients. Although on track tomake partner back at home, the insights hegained into European markets by acceptingthe Brussels assignment prov-ed invaluablewhen it came to his later move up thecareer ladder.

“My career has definitely been enhanced,and I was able to progress faster as a result ofmy international assignment,” he explains.Jagiello is now an audit partner in Deloitte’sChicago office. He credits his overseas expe-rience with broadening his professional net-

work and providing himwith opportunities to workon high-level engagementsin the United States.

Working overseas can beone of the richest experi-ences of an accountant’scareer. Relocating is nevereasy, but the chance tobroaden tax and account-ing experience on a globalscale in places such asIndia, Mexico, China andEurope is hard to pass up.In fact, all but three of 400Deloitte professionals sur-veyed in 2008 said theiroverseas experience was sobeneficial that they’d con-sider doing it again.

While it’s not a guaranteeof advancement, “It canand often does position youahead of your peers,” saysMarilin Marzan, nationalhuman resources managerfor Grant Thornton’s globalmobility program, Chicago.

The impending adoptionof International FinancialReporting Standards (IFRS)

and ongoing globalization will drive demandfor accounting and finance professionalswith international business acumen, accord-ing to a 2008 Robert Half International sur-vey. About 71 percent of CFOs said overseasexperience will be necessary for accountingand finance professionals five years fromnow—an increase from 56 percent in 2002.

In addition to the convergence of USGAAP and IFRS, the demand for interna-tional experience is being driven by factorssuch as client requests for multinationalbuy in, the need to maintain foreign rela-tions with suppliers, and the desire tostrengthen a corporate brand worldwide.

“As a firm, we have gone as far as to posi-tion mobility as one of our 10 global prior-ities,” explains Warren Smith, director ofHR for Ernst & Young’s Midwest area, basedin Chicago.

Opportunities for international assign-ment vary widely depending on the firm,and the current slowing of the global econ-omy is taking its toll. Grant Thornton, forexample, has seen a 10-percent drop inoutbound long- and short-term assignmentsfrom last year, Marzan explains. The num-ber of inbound assignments has decreasedby about 40 percent. She expects to see abit more slowdown before the number ofplacements turns around.

Nevertheless, executives do expect num-bers to grow in the not-too-distant future.Ray Lombardi, US managing partner ofDeloitte’s Office of Global Deployment inChicago, foresees the number of deployedDeloitte professionals increasing steadilyover the next four years, with the number ofUS inbound and outbound assignmentsreaching 1,900 by 2012, up from 1,100today. For all member firms in the Deloittenetwork, that number was around 1,500 lastyear, and is likely to grow to 3,000 by 2012.

Given current shifts in the accountingprofession, now is the time for younger

www.icpas.org/insight.htm JULY 2009 13

professionals to plan for overseas develop-ment, says Louise Hraur DeSina, a directorin the communications division of theAmerican Institute of Certified PublicAccountants (AICPA). “That plan will beyour roadmap to get you where you want tobe in the world,” she says.

She offers some tips: Ask “What do I wantto achieve?” “Where would I like to live?”and “Would I prefer a long- or short-termassignment?” If you have a family, how willthey feel about relocating? If you’re not cur-rently employed, target job opportunities thatoffer multinational opportunities and startnetworking. Also get up to speed on interna-tional accounting issues. And pay attentionto global trends. Specialty areas like forensicsand corporate compliance are becoming hot-ter and hotter in the march towards increasedfinancial transparency. The green movementis also noteworthy as more accountants dealwith environmental reporting requirementson a global platform.

As you look ahead, however, be preparedfor fierce competition amongst assignmentcandidates, says Smith. Ernst & Young, forone, will likely become even more discrimi-nating in selecting global deployment candi-dates “to ensure we have the right roles andthe right people on assignment.”

Generally speaking, what are firms likeErnst & Young looking for? Strong leadershipand organizational skills, technical knowl-edge and a demonstrated interest in workingwith other cultures. Professionals who arebilingual and are familiar with another coun-try’s tax, compliance, legal and regulatoryissues also are extremely attractive as over-seas assignment recruits.

Long-term assignments typically last a yearor more, while short-term stints can range any-where from a couple of weeks to a couple ofmonths. It all depends on client needs and thescope of work involved. Firms such as Ernst &Young also offer volunteer programs abroad,through which professionals can assist anentrepreneur in an emerging country.

Most important in your hunt for interna-tional opportunities is communication ofyour desires to the people at the top. Talk topartners about their overseas experiences,tell them about your international aspira-tions, offer to work on international projectswhile you’re still stateside, and learn all youcan about the technicalities of the globalfinancial landscape.

keep your career on track [ in today’s job market ]

Career CenterA benefit of your Illinois CPA Society Membership

Search Job Listings | Post Your ResumeLocate Search Firms | Explore Career Resources

Find a Career Coach*

Check out the Career Center today at

www.icpas.org*fee-based service

Members-Only Career Event:

LOOKING FOR A JOB? Positioning Yourself in a Tough Job Market

July 30, 2009 | 8:00AM - 12:00PM | Chicago, IL | Cost: $25

Register online at www.icpas.org


TECHNOLOGY

TwitterblogiverseCan you social network your way to business success?

By Allison Enright

Business used to be done with ahandshake. Sometimes, it still is.But for a growing number of poten-

tial customers, the majority of research,referrals and recommendations are beingdone by virtual rather than physical word,via social networks like LinkedIn, Facebookand MySpace.

LinkedIn, a social network for businessprofessionals, attracts nearly 69 millionmonthly unique visitors, according to webanalytics firm Compete Inc. Facebook, oneof the largest general-interest social webcommunities in the world, has more than200 million active users (as of April 2009).More than half of that number log on to thenetwork every day, sharing more than a bil-lion pieces of content each week, accordingto Facebook research findings. Blogs, inwhich readers can respond to contentposted by blog authors, numbered more

than 112 million in 2008,states web research firmTechnorati. And 33 percentof US Internet users say theyread them.

The unbridled growth ofthese communication out-lets has compelled a seachange in the way busi-nesses communicate. Fromsole practitioners to largecorporations, participatingon the social web scene hasbecome a near essential.

“People need to wake upto this whole thing,” saysNathan Egan, founder andmanaging director of socialweb consultants, the Free-source Agency. “Get involv-ed and take it seriously.”

For those who are tempt-ed to shrug off the idea ofsocial media as somethingjust for teens and twenty-

somethings, consider this: The fastest-grow-ing user group on Facebook is women over55, which grew almost 550 percent in justsix months. The 25 and under crowd grewby less than 20 percent. LinkedIn users havean average of eight years’ work experience,and 23 percent of MySpace’s 65.1 millionactive members in the United States areaged 35 years and older. You do the math.

Egan says the benefits of active participa-tion in social media sites like LinkedIn canbe huge. Imagine, for instance, that you’re asole practitioner connected to your clientsvia a virtual network. If you were to ask asatisfied client to write a recommendationfor you, that recommendation would bebroadcast to not only your connections, butthose of your client as well. That’s invalu-able free marketing.

“If a CPA has 30 recommendations andthey are all from clients, who is going toget the look or the nod? It’s going to be theperson with the most recommendations,”Egan explains.

Business professionals also can partici-pate in LinkedIn Q&A forums, where theyanswer questions posed by the LinkedIncommunity. Whenever you answer a ques-tion, that answer appears on your profilepage. The more questions you answer, thegreater your credibility, says Egan.

What’s more, members can join LinkedInspecial interest groups, which help to furtherexpand your network and build your reputa-tion. Since LinkedIn is tied to the algorithmsGoogle uses to return search results in gen-eral web searches, boosting a profile on thenetwork can increase a CPA’s visibility tonon-LinkedIn participants as well.

Individual self-promotion is one thing;however, putting yourself “out there” as anorganization can be intimidating.

“It’s already tough for corporate execu-tives to wrap their minds around socialmedia,” says Valorie Luther, founder andCEO of Creative Concepts Consultants, a

Twitter Hits the C-SuiteTwitter is being used by almost a third ofsenior executives for business purposes,according to a new worldwide NFI Re-search survey. A fourth of senior execu-tives, specifically, say they tweet, whiletwo-thirds of senior executives and man-agers combined use LinkedIn for businesspurposes. A further 26 percent use blogsand 22 percent use Facebook. What’smore, the survey reveals that more smallcompanies versus large companies usesocial networking. Visit www.nfiresearch.com for more.

�!��)��(��+� ��,�.&1��2 �"#��!)��

��(��'��##��&� ��,�.!.,-��2 �"#��!)��

��%��%&��$(�&�'�"!&��*-�'��+��2 �"#��!)��

��!�!��!&'�'('�"!&��*-�'��+��2 �#,&��

��+��%��'�'�"!�%��-)��+��2 �),�')(-��

�!&(%�!��-)��+��2 �"#��!)��

��'��%��" #��!��%�(�� ,��-)��+��2 �),�')(-��

"!&'%(�'�"!��!�(&'%��&��-)��+��2 ��%�+))%��++��

��+�)/�'��+��2 �),�')(-��

�%�(��)/�'��+��2 �"#��!)��

��&'�'��)/�'��+��2 �),�')(-��

�"'��"%��%"��'� ��(��,�)/�'��+��2 �),�')(-��

�"'��"%��%"��'��'��+��2 �*+#(! #�&��

� #�",��!��'&� ��,��'��+��2 �),�')(-��

��"(!'�!��(��'�!��'��+��2 �),�')(-��

��"(!'�!��(��'�!��'��+��2 �*+#(! #�&��

��

��%��"(%��!��%�

2009 is a CPE Reporting Year

Licensed CPAs need 120 hours of CPE*by September 30, 2009.

*Must include 4 hours of Ethics CPE

��-�,��(��&)��-#)(,��+��,.�$��-�-)��"�(!��&&��)( �+�(��,�) �+��+��#- �"��%�).+�0��,#-�� )+�#( )�)(��(��)-"�+�,*��#�&-1��+��#-,�

�"%�'�� "&'��(%%�!'��!�"�"%�'"�%��&'�%��)�&�'***��#�&�"%��


PR and social media consultancy. “They are very leery of com-plete transparency, and are afraid of losing control. What I say toevery business afraid of this is, ‘You can only gain control onceyou lose control.’”

Also consider the fact that, in an ultra-competitive market fortalent, having a presence on social networking sites that arefavored by young professionals may give your organization theedge it needs in the fierce recruiting game. KPMG and Deloitte,for example, both use Facebook and MySpace as recruiting toolsfor internships and entry-level positions, in addition to promotingtheir on-campus events.

Other companies have used social web technologies to enhancetheir brand and business. Wells Fargo & Company, for instance, isconsidered a pioneer in bringing the social web to financial serv-ices, says Luther. The bank launched its first blog in 2006 and nowsupports five. It further developed an online virtual world gamecalled Stagecoach Island [blog.wellsfargo.com/StagecoachIsland],which targets teens with a message about fiscal responsibility. It alsocommunicates via MySpace, Facebook and Twitter.

“In every channel you can find your next consumer, an individ-ual who is interested in hearing your brand’s message,” says Luther.

As far as blogs go, though, Wells Fargo may be the exceptionrather than the rule. In fact, less than 15 percent of Fortune 500companies maintain a corporate blog, according to PR firm Bur-son-Marsteller’s blogging index survey.

Nevertheless, blogs represent an easy entrée into the world ofsocial media, and are a great way to build your personal brand andraise your profile to potential employers. “Recruiters are using blogsto help to understand their potential employees. If there is a blog outthere written by a candidate, they read it,” Egan explains. “It canreally help to make a distinction between you and the guy next toyou who doesn’t have a blog. That level of transparency makes iteasier to make a judgment call if they are going to hire.”

Some companies are going so far as to establish unique webspaces apart from their main portals to help to promote theirbrand. In February 2009, for example, Boston-based insurer Lib-erty Mutual launched the Responsibility Project [Responsibili-tyProject.com], which combines blogs, videos and forumsdesigned to stimulate conversations about personal financialresponsibility. The site is a hybrid of consumer-generated contentand content sourced by Liberty Mutual.

“Consumers today want to engage in conversation with compa-nies and other consumers, not be spoken at through corporatepress releases and glossy ads,” says Luther. “Social media worksbecause it is all about relationships.”

Zecco, a low-cost stock brokerage, launched ZeccoShare, asocial community for investors, late in 2007, making it a key part oftheir customer acquisition and marketing plan. It now boasts morethan 230,000 members that use the community think-tank todevelop and manage their portfolios. ZeccoShare allows investorsto show off their profiles and trade wins. Members also can join spe-cific groups to participate in discussions on topics like sociallyresponsible investing or diversity in investing.

No matter how deeply you decide to wade into social network-ing waters, be aware that the systems only work if you are activelyengaged in them. “People say, ‘I joined LinkedIn but it didn’t doanything for me,’” says Egan. “Well, it’s not going to do anythingfor you unless you make it work for you.”


SUPPLY CHAIN

Heavy LiftingBuild a strong supply chain to wrestle a weak economy.

By Selena Chavis

In a global economy that is uncertain atbest and plunging into a deeper chasm atworst, the concept of a strong and cost-

effective supply chain should be at the heartof every company’s agenda. At least, that’swhat a recent DSC Logistics survey says.

“We’ve seen that trend evolving for manyyears. Companies by and large certainlyrealize now that there is a lot of money andsaving at stake in the supply chain. Therecent challenges have been focusedaround the drastic changes that haveoccurred in a short period of time,” saysDSC Logistics VP of Customer Care ScottMorgan, adding that every year, the finan-cial professional’s role becomes moreprominent in this process.

We are in the midst of an era marked byextreme changes in fuel and material costs,lower consumer spending, tightening capi-tal, growing pessimism and fluctuatingexchange rates. The challenges of building astrong supply chain are piling up, says DavePittman, US lead for PricewaterhouseCoop-ers’ Operations practice. “There is an abso-lute change in cost culture since the first ofthe year, and it increases daily. It’s really envogue to reduce costs,” he says.

The dynamic nature of the economy,where fuel prices may reach more than $4a gallon one summer and drop to nearlyhalf that the next, make flexibility and the

ability to adapt quickly critical componentsof effective supply chain strategies today.

“Changes have been abrupt, forcingcompanies to be more adaptable,” Morganexplains. “Companies need to avoid gettinglocked into long-term contracts and leases.Many companies are putting out trans-portation RFPs to go back and rebid con-tracts based on lower fuel costs, for exam-ple. It’s the right thing to do. You can finddeals you didn’t dream about a year ago. Iffuel costs are high, you want to be close tothe customer. When fuel costs are low, youcan afford to be further from the customer.Being in a position to continually re-evalu-ate that is important.”

Pittman agrees, pointing to price drops incommodities such as steel, copper andcement in recent months. “There are a lot ofcompanies going back to vendors to reducecosts,” he explains. “And there are mountingconcerns over fluctuating exchange ratesand the volatility of prices overseas as well.People are looking at alternative suppliersthat are closer to home.”

It’s not just about lowering costs, though;it’s also about keeping suppliers in play.

“When I talk to financial people, one ofthe concerns they have is supplier viability,”says Pittman. The current “here today, gonetomorrow” culture of startups and evenmainstay businesses has many companiesfearing that they’ll be caught off-guard iftheir main supplier closes its doors. “How dothey keep their fingers on the pulse of thesupplier?” asks Pittman.

It’s vital that companies use all the dis-parate pieces of information available tothem to understand how economic condi-tions are affecting suppliers. “Look at all thedifferent people touching suppliers in yourcompany. How do you accumulate thatinformation? Also important to this process isan understanding of who the company’s crit-ical vendors are. A lot of companies haven’tgone through that exercise.”

While flexibility to make changes andrenegotiate contracts is one means of strate-gic improvement, savvy companies are

For more information about the onlyliability plan endorsed by the ICPAS:

1-800-337-2621www.proliability.com/accountants

CA#0633005

The Illinois CPA Society-endorsed Professional LiabilityPlan provides:

• Competitive pricing thatsaves you money

• A choice of liability limitsand deductibles to fit yourindividual needs

• Full Prior Acts coverage,change insurers withoutloss of protection

• Free 60-day ExtendedReporting Period

• Marsh, the programadministrator, has morethan 25 years of experienceserving accounting firmsnationwide

Administered by: Marsh Affinity Group Services, a service of Seabury & Smith, Inc.For policy details, please consult policy terms and conditions. Issuance of coverage subject to underwriting guidelines.d/b/a in CA Seabury & Smith Insurance Program Management©Seabury & Smith, Inc. 2009 40280, 41254

You prepare a tax return for a client. It results in severepenalties and interest charges...

You fail to file an amendment to a client’s tax returnthat would have enabled him to receive a $100,000tax refund...

Every time a client faces financial harm, you could findyourself in court. The costs to defend yourself could costmore than the lawsuit itself.

If someone in your firm makes an error, do you have theright coverage?

Since you can’t predict which way the scales of justicewill tip, your best protection is the ICPAS-endorsedProfessional Liability Insurance Plan.

Your career couldhang in the balance...Your career couldhang in the balance...

Accountants Proliability Program

600 Dresher Road, Horsham, PA 19044 215.956.8529

PROFESSIONALADVISORSALLIANCE.COM

Helping your clients plan for their future is a pretty good plan for your future.

Enhance the services provided to your clients, by helping them plan for their future. A partnership

with Professional Advisors Alliance (PAA) enables you to build on the trust and respect your clients

already have for you, while giving them the additional services they need.

We have many options for integrating financial advisory services with a collaborative approach

designed to work within your firm’s philosophy. The proven expertise of PAA will not only strengthen

your CPA practice, it will increase your value to your clients and help grow your business.

A9CD-0506-04


going a step further by identifying ways to shorten the distancebetween points along the distribution channel and maximize lessexpensive modes of transport.

“We’re seeing more attention being paid to shortening supplychains from overseas markets to more domestic locations,” saysPittman. “For example, many continue to produce in Asian mar-kets, but with more emphasis on Asian customers.”

“I have seen a lot of customers looking at rail as a viable option.People are considering rail from a greener or more sustainablepoint of view as well,” Morgan adds.

What’s more, supply chain efficiencies often are achieved byconsolidating vendors or using a transportation partner. Pittman seescompanies trying to use a greater number of common componentsin multiple products or models to consolidate vendor activity. Oth-ers eliminate the extra miles associated with moving products backand forth to and from a co-packer by handling value-added serviceswhere products are warehoused. Movement within the warehouseis also being scrutinized, since an enormous amount of time can bewasted by moving, storing and replenishing products.

“There are two things driving this movement,” Morgan explains.“First, it costs more to send something to a co-packer. Second, thelead time for these types of requests is shrinking dramatically.”

Transportation partners may contribute to that lean, mean sup-ply chain strategy, since they can “see where freight is movingbetween a number of different companies and come to the tablewith creative and collaborative solutions for working together.”

Looking further down the supply chain, ineffective inventorycontrol can wreak havoc on profit margins, says Pittman. One

way to combat this is to simplify operations by reducing the num-ber of SKUs or product offerings. “Fewer SKUs can lead to lowercosts and improved customer service, and less slow-movinginventory,” he says.

Ever a balancing act, Morgan notes that it comes down to hav-ing the “right product in the right place at the right time” and pair-ing that effort against excess inventory. “Customers are trying hardto focus on obsolete inventory, trying not to hold on to it anylonger than necessary. That’s always a challenge,” he acknowl-edges, adding that too much material means that valuable spaceis needed to hold unnecessary stock.

On the other hand, a scarcity of items may lead to lost orders.What do you do then? Put pressure on suppliers to be moreresponsive when needs arise, says Pittman. When the demand isthere, you need to be able to get stock quickly.

“Less demand lowers the amount of safety stock,” he says. “Freecash flow and lower inventories have become a focal point forhighly leveraged companies. Lowering inventories while maintain-ing customer service often requires improved demand planning,more focus on sourcing, and increased communications with ven-dors. Consequently, many companies are currently looking moreclosely at their demand planning and sourcing capabilities.”

While complexities may be high and challenges may bemounting, Morgan encourages companies to take advantage ofthe opportunity to purge. With a nod to the business concept that“good companies get better in bad times,” he concludes that,“This is a great time to take a step back and revisit processes.Make sure you are eliminating the waste.”

If you have an insurance claim, the lastthing you want to worry about is whether ornot you have the proper coverage.

That’s why the ICPAS-sponsored groupinsurance program is so important.

These plans are designed specifically for you.It’s worth a phone call to explore thisimportant member benefit.

We think you’ll find the ICPAS-sponsoredinsurance program soars above the competitionwhen it comes to providing you and yourfamily with economical financial security.

• Professional Liability Insurance*††

• Life Insurance*††

• Disability Income*††

• Group Dental Insurance*†

• Health Insurance Mart*

• Group Accidental Death andDismemberment Insurance*†

• Long-Term Care*††

• Hospital Income*††

• Group Catastrophic Major Medical Insurance*†

• Veterinary Pet Insurance*††

• 10YLT Life Insurance*††

For more information, contact Marsh Affinity Group Services at:

1-800-842-ICPA (4272)www.personal-plans.com/icpas

Take the first stepstoward helping secure your family’s futurewith the ICPAS-sponsored Insurance Plans

CA#0633005Administered and brokered by Marsh Affinity Group Services, a service ofSeabury & Smith, Inc., Insurance Program Management†Underwritten by The United States Life Insurance Company in the City of New York.d/b/a in CA Seabury & Smith Insurance Program ManagementAG-675040075, 41157, 41158, 40280, 41159, 41254, 41160, 41161

Marsh Affinity Group Services, a service of Seabury & Smith, Inc. 2009

††Underwritten by Hartford Life and Accident Insurance Company,Simsbury, CT 06089

* The plans are subject to the terms, conditions, exclusions, and limitations of thegroup policy. For costs and complete details of coverage, contact the planadministrator. Coverage may vary and may not be available in all states.


DIVERSITY

For seven years now, the Illinois CPASociety (ICPAS), through its Women’sExecutive Committee, has explored

the role of women CPAs in Illinois publicaccounting firms. And perhaps frustratingly,its recently released seventh survey findsthat little has changed over the years.

The survey was distributed to 90 Illinoisfirms with 15 or more professionals. Its goalis to track the percentage of women at threelevels of leadership—partner/principal; sen-ior manager/manager; and senior/staff—aswell as the percentage of women holdingfirm-wide leadership positions. The surveyalso gauges the effectiveness of initiativesand programs specifically targeted towomen, with findings based on responsesfrom both individual women CPAs (all areICPAS members) and their respective firms.

Assessing the success of theseinitiatives and programs pro-vides an evaluation of bestpractices for retaining andpromoting women CPAs.

The NumbersWhile the percentage of wo-men entering public account-ing firms has decreased from54 percent in 2003 to 49 per-cent in 2009, the number ofwomen being retained at thesenior manager/manager andpartner/principal levels hasslowly climbed from 40 per-cent to 43 percent and 15 per-cent to 18 percent, respec-tively, over this same timeperiod. (See Figure 1 oppositefor 2009-2006 data.) Admit-tedly, this is a slow climb, buta climb nonetheless.

That said, although thenumber of men and womenin the most senior positionsboth increased in this year’ssurvey, the number of mencontinues to far outweigh that

of women in the partner/principal positions.(See Figure 2 opposite.)

Leadership Positions There is a bright spot, however. The percent-age of women in managing partner andexecutive management positions is a strongindicator of the growing acceptance of women CPAs in leadership roles amongtoday’s firms. In this year’s survey, womenrepresented 12 percent of firm/office manag-ing partner positions, an increase of 2 per-cent from the previous year, which had beenthe high point of a steady 1-percent annualincrease since the first survey was conductedin 2002.

The number of women in the most sen-ior firm-wide leadership positions (namely,firm or office managing partners and exec-utive management) rose to 19 percent,compared to 18 percent last year and a 10to 13 percent range during the prior 5 years.For the second year in a row, this leadershippercentage is actually higher than the per-centage of Illinois women currently in part-ner/principal roles. The increase over lastyear is due in large part to the rising num-ber of women in the firm/office managingpartner category. (See Figure 3 opposite.)

Although changes in management struc-ture may cause some data inconsistenciesfrom year to year, the increase in womenholding executive management roles is astep in the right direction.

Women’s InitiativesFirms were asked to indicate which of nineworkplace initiatives are currently in placeat their firms, and to rate their effectiveness.Separately, women ICPAS members at thesame firms were asked to respond to iden-tical questions and to identify which pro-grams they would like to see implementedat their firms.

Eighty-two women and 52 of the 90 sur-veyed firms responded to these questions.

Accounting WomenWhy hasn’t anything significantly changed for women in public accounting leadership roles?

Provided by the ICPAS Women’s Executive Committee

16th Annual Midwest

FINANCIALREPORTING

Symposium

Accounting and FinancialReporting Updates from the SEC,FASB, IASB, AcSEC and PCAOB

Friday, September 25, 2009Donald E. Stephens Convention Center, Rosemont, IL8 CPE Credits | $325 members/$395 non-members

Don’t miss thisunique opportunityto interact with an all-star lineup of

financial reportingpolicy-setters.

To register, or for more information visitwww.CCFLinfo.org or call 800.993.0393.

Both groups rated the following four initiatives as the most effec-tive in retaining and promoting women:

Of these four programs, flexible work arrangements and men-toring programs continue to be the most in demand among womenworking at firms that currently do not offer these initiatives. Thediscrepancy between the firms’ ratings of flexible work arrange-ments and the women CPAs’ ratings of the same initiative is par-ticularly interesting, since it reveals a significant gap in perceptionbetween the two groups.

The following initiatives were in place at only 26-38 percent ofthe firms that took part in the survey: childcare assistance, women-specific mentoring programs, and programs to develop women aspartners on high-profile client assignments. Forty-three percent ofthe firms taking part in the survey had “part-time partner track” inplace; this initiative continues to be the most sought-after amongthe women surveyed.

The retention and promotion of women within public account-ing firms continues to have a huge impact on the industry, and it’sdisappointing to see so little movement after seven years of sur-veys. The Women’s Executive Committee will focus its futureefforts on identifying and spotlighting firms that are making realprogress in retaining and promoting their women professionals.Perhaps their success can be a roadmap for other firms in Illinois.

Turn the page for more statistics from the 2009 Role of Women in

CPA Firms survey.

We sincerely thank the firms and women that responded to our

survey and willingly shared their information with us. This coop-

eration is appreciated and necessary as we strive to advance the

role of women in public accounting firms.

60%

50%

40%

30%

20%

10%

0%

200641%

200742%

200842%

200943%

200617%

200718%

200817%

200918%

Percentage of Women in Illinois by Position

Partner/Principal Senior Manager/Manager Senior/Staff

200650%

200749%

200848%

200949%

FIGURE 1

2009 2008 2007 2006

Women 346 (17.6%) 330 (17.2%) 353 (17.9%) 306 (16.7%)

Men 1,616 (82.4%) 1,584 (82.8%) 1,614 (82.1%) 1,530 (83.3%)

FIGURE 2

Firm/Office MP Executive Management Total Executive Positions

# Women % of Total # Women % of Total # Women % of Total

2009 62 12.4% 177 22.6% 239 18.7%

2008 49 10.0% 186 23.1% 235 18.2%

2007 46 9.7% 104 15.2% 150 13.0%

2006 40 8.8% 77 11.8% 117 10.6%

FIGURE 3

% of Firms - Rating % of Women - Rating

Flexible Work Arrangements 57% - Highly Effective 45% - Moderately Effective

Mentoring Programs 57% - Moderately Effective 49% - Moderately Effective

Family Leave Policies 40% - Highly Effective 28% - Highly Effective30% - Moderately Effective 49% - Moderately Effective

Paid Time Off 43% - Highly Effective 46% - Highly Effective

FIGURE 4


* All information was provided by the firms. Surveys were sent to 90 Illinois firms that had15 or more professionals as listed in the Illinois CPA Society's Peer Review or MembershipDatabase and the 2008 Crain's Chicago Business list of Chicago's largest accountingfirms. Surveys were mailed in January 2009 and firms were asked to provide the mostrecent available data, but to not use data earlier than December 31, 2008.

*** Firm did not provide information for this year. NA = Information Not Applicable

(a) First included in survey population in 2009. (b) First included in survey population in 2008.(c) First included in survey population in 2006.

The following firms declined to participate in the survey for all years: FGMK LLC; GimbalAbrams & Singer; Scheffel & Co.; Sleeper Disbrow Morrison Tarro & Lively.

The following firms declined to participate in the survey for 2009, 2008, 2007, 2006 and 2005:Chunowitz, Teitelbaum & Baerson, Ltd.; Morrison & Morrison, Ltd.; Pasquesi Sheppard LLC

The following firms declined to participate in the survey for 2009, 2008, 2007 and 2006: Brook WeinerLLC; Medical Business Consultants - Midwest, Ltd., CPAs; Professional Business Consultants.

The following firms declined to participate in the survey for 2009, 2008 and 2007: Friedman & HueyAssociates, LLP; L. J. Soldinger Associates; UHY LLP

The following firms declined to participate in the survey for 2009 and 2008: Ahlbeck & Company;Mulcahy Pauritsch Salvador & Co, Ltd.; Wermer Rogers Doran & Ruzon, LLC.

The following firms declined to participate in the survey for 2009: BIK & Co.; Kutchins, Robbins &Diamond Ltd.; Michael James Liccar & Co.; Mowery & Shoenfeld LLC; Smith, Koelling, Dystra & Ohm, P.C.

Total # of Partner/Principal Senior Manager/Manager Senior/StaffIllinois' Largest Accounting Firms* Professionals 2009 2008 2007 2006 2009 2008 2007 2006 2009 2008 2007 2006Deloitte & Touche LLP 2,748 21% 21% 20% 18% 38% 37% 39% 36% 45% 45% 46% 46%PricewaterhouseCoopers LLP 1,573 20% 20% 24% 22% 43% 43% 49% 48% 47% 46% 46% 48%Ernst & Young LLP 1,363 16% 19% 19% 19% 42% 40% 36% 42% 44% 44% 45% 46%KPMG LLP 1,317 14% 14% 13% 14% 38% 38% 37% 33% 44% 43% 41% 42%RSM McGladrey Inc. 1,308 13% 12% 13% 10% 44% 45% 46% 43% 55% 56% 55% 53%Crowe Horwarth LLP 634 23% 20% 17% 19% 52% 52% 49% 47% 47% 45% 48% 51%Grant Thornton LLP 344 19% 16% 14% 12% 41% 37% 40% 38% 50% 51% 56% 53%Clifton Gunderson LLP 281 10% 10% 7% 9% 42% 42% 43% 47% 55% 58% 62% 61%Blackman Kallick LLP 265 22% 18% 22% 23% 39% 41% 46% 41% 46% 49% 49% 48%Sikich LLP 237 16% 17% 17% 13% 65% 64% 58% 54% 53% 66% 66% 47%BDO Seidman 183 43% 26% *** *** 37% 39% *** *** 48% 52% *** ***Miller Cooper & Co., Ltd. 166 14% 13% 15% 20% 45% 38% 30% 33% 47% 48% 51% 53%Virchow, Krause & Co., LLP 146 12% 8% 8% 9% 23% 23% 31% 31% 47% 44% 41% 45%Plante & Moran PLLC 134 4% 0% 0% 0% 58% 51% 49% 46% 54% 48% 56% 57%Wolf & Co. LLP 101 23% 25% 19% 19% 45% 52% 50% 52% 65% 58% 55% 61%Frost Ruttenberg & Rothblatt P.C. 97 16% 12% 11% 14% 56% 65% 67% 58% 50% 57% 53% 67%Legacy Professionals 89 28% 28% 33% 25% 37% 50% 39% 15% 33% 29% 33% 32%Kerber, Eck & Braeckel LLP 85 27% 25% 29% 29% 59% 47% 53% 67% 67% 48% 62% 62%Ostrow Reisin Berk & Abrams, Ltd. 85 15% 11% 12% 13% 0% NA NA NA 59% 44% 57% 53%Lindgren, Callihan, Van Osdol & Co., Ltd. 84 5% 4% 4% 5% 25% 21% 33% 21% 67% 62% 70% 67%Bansley & Kiener LLP 73 10% 17% 17% 17% 100% 80% 80% 80% 39% 33% 34% 33%Mueller & Co. LLP 72 23% 15% 25% 8% 60% 54% 50% 69% 86% 84% 85% 88%Mayer Hoffman McCann P.C. 67 29% 29% 32% 24% 50% 30% 27% 46% 50% 51% 57% 53%Reznick Group, P.C. 64 0% 0% 0% *** 36% 18% 33% *** 35% 36% 38% ***Warady & Davis LLP 63 20% 20% *** *** 52% 43% *** *** 53% 36% *** ***Smart Business Advisory and Consulting LLC 57 9% 7% *** 21% 18% 17% *** 35% 59% 56% *** 65%E.C. Ortiz & Co., LLP (b) 53 83% 83% *** *** 67% 70% *** *** 74% 75% *** ***Ganim, Meder, Childers & Hoering, P.C. 53 8% 8% *** 0% 85% 90% *** 92% 67% 70% *** 86%Gray Hunter Stenn LLP 48 14% 21% 20% 27% NA NA NA NA 68% 63% 66% 63%Michael Silver & Co. 45 11% 12% 12% 6% 80% 70% 80% 90% 63% 46% 42% 45%West & Company LLC 45 25% 25% 33% 29% 33% 25% 27% 22% 71% 71% 84% 87%DiGiovine, Hnilo, Jordan & Johnson, Ltd. 44 31% 29% 27% 29% 62% 75% 73% 78% 47% 53% 53% 50%Porte Brown LLC 44 0% 0% *** 0% 67% 40% *** 40% 47% 36% *** 40%Heinold-Banwart, Ltd. 43 20% 20% 20% 13% 57% 75% 67% 60% 85% 69% 75% 76%Topel Forman LLC 43 10% 11% 0% *** 67% 40% 33% *** 48% 48% 56% ***Selden Fox, Ltd. 42 0% 11% 10% 14% 44% 44% 44% 36% 24% 29% 21% 20%Shepard, Schwartz & Harris LLP 42 31% 31% 31% 31% 0% 0% 29% 25% 62% 59% 60% 67%Corbett, Duncan & Hubly, P.C. 39 0% 0% 0% 0% 80% 60% 50% 57% 50% 64% 77% 72%Coleman Joseph Blitstein & Stuart LLC 36 0% 0% 0% 0% 33% 29% 40% 40% 59% 35% 57% 47%Kessler, Orlean, Silver & Co., P.C. 35 0% 0% 0% 0% 25% 33% 33% 33% 72% 67% 62% 55%Eric J. Fernandez & Co. 34 0% 0% 0% 0% 33% 33% 20% 20% 71% 71% 86% 87%Martin, Hood, Friese & Associates, LLC 34 17% 30% 20% 20% 50% 78% 40% 43% 58% 50% 68% 70%Silver Lerner Schwartz & Fertel (c) 34 17% 17% *** *** 60% 60% *** *** 67% 75% *** ***Weiss & Company LLP 32 9% 11% 11% 10% 63% 40% 44% 29% 69% 69% 62% 60%Lauterbach & Amen, LLP (b) 31 50% *** *** *** 69% *** *** *** 69% *** *** ***Dugan & Lopatka, CPAs, P.C. 30 25% 25% 25% 13% 78% 67% 50% 57% 54% 76% 77% 68%Steinberg Advisors (c) 30 0% 0% 0% 0% 40% 50% 50% 67% 83% 91% 82% 92%Washington, Pittman & McKeever 30 50% 50% 50% 50% 40% 40% 50% 50% 52% 57% 54% 54%Cray, Kaiser Ltd., CPAs 26 20% 20% 20% 17% 60% 50% 50% 50% 50% 40% 46% 50%Russell Novak & Company 26 0% *** *** *** 50% *** *** *** 50% *** *** ***Krehbiel & Associates LLC 23 14% *** *** 0% 25% *** *** 50% 92% *** *** 78%May, Cocagne & King, P.C. (a) 22 25% *** *** *** 67% *** *** *** 88% *** *** ***Striegel, Knobloch & Co. LLC 21 13% 11% 11% 13% 0% 0% 25% 25% 73% 63% 63% 64%Doehring, Winders & Co. LLP 20 0% 0% 0% 0% 0% 0% 50% 50% 62% 60% 80% 70%Borhart, Spellmeyer & Co. 19 20% 20% 20% 20% 71% 80% 40% 40% 29% 40% 50% 56%Dunbar, Breitweiser & Co. LLP 19 0% 0% 0% 0% 33% 50% 33% 50% 73% 73% 71% 54%Eck, Schafer & Punke LLP (b) 18 0% 0% *** *** 17% 0% *** *** 57% 83% *** ***J.W. Boyle & Co., Ltd. 17 0% *** 0% 0% 75% *** 50% 50% 86% *** 88% 71%Pritchard Osborne LLC 16 0% 0% 0% 0% 17% 0% 0% 0% 33% 25% 25% 0%Graff, Ballauer, Blanski & Friedman, P.C. 14 0% 0% 0% 0% 0% 0% 33% 33% 43% 38% 25% 29%Capin Crouse LLP 13 33% 50% 0% 0% 100% 50% 50% 50% 44% 33% 71% 60%Rome Associates LLP 4 50% 0% 0% 0% 0% 100% 100% 75% 50% 50% 20% 67%Coleman, Epstein, Berlin & Company LLP - *** *** 0% 0% *** *** 67% 0% *** *** 56% 64%DBH & Associates, LLC - *** 17% *** 17% *** *** *** *** *** *** *** ***Hill, Taylor LLC - *** 0% 0% 0% *** 33% 25% 33% *** 56% 52% 57%Kemper CPA Group LLC - *** *** 46% 42% *** *** 86% 62% *** *** 59% 81%Knutte & Associates, P. C. - *** *** 0% *** *** *** 57% *** *** *** 45% ***Larsson, Woodyard & Henson LLP - *** *** 40% 40% *** *** 50% 67% *** *** 100% 100%

Illinois CPA Society's 2009 Survey on the Role of Women in CPA Firms - Professional Personnel Who Office In Illinois - Percentage of Women by Position

Totals/Percentages 12,761 17.6% 17.3% 17.9% 16.7% 42.6% 41.6% 42.4% 41.2% 49.2% 48.2% 49.0% 49.8%

CHART 1 - 04.16.09

Firm/Office Managing Partners Executive Management Total # of Total Women Professionals in IllinoisIllinois' Largest Accounting Firms* 2009 2008 2007 2006 2009 2008 2007 2006 Illinois Prof. 2009 2008 2007 2006Deloitte & Touche USA LLP 21% 33% 26% 25% 26% 28% 17% 16% 2,748 40% 39% 41% 40%PricewaterhouseCoopers LLP NP NP NP NP NP NP NP NP 1,573 43% 42% 42% 42%Ernst & Young LLP 18% 14% 13% 14% 25% 17% 18% 17% 1,363 39% 39% 38% 41%KPMG LLP 11% 8% 8% 8% 9% 22% 22% 21% 1,317 39% 39% 37% 36%RSM McGladrey Inc. 9% 9% 5% 0% 19% 21% 23% NP 1,308 46% 48% 46% 42%Crowe Horwath LLP 0% 0% 0% 0% 12% 5% 0% 6% 634 44% 42% 42% 45%Grant Thornton LLP 8% 4% 6% 3% 66% 60% 13% 12% 344 42% 41% 44% 42%Clifton Gunderson LLP 14% 14% 11% 15% 17% 13% 9% 15% 281 43% 44% 46% 47%Blackman Kallick LLP 0% 0% 0% 0% 0% 0% 0% 0% 265 40% 41% 43% 41%Sikich LLP NP NP NP 0% 13% 13% NP 0% 237 49% 52% 51% 37%BDO Seidman 11% 0% NP NP 0% 0% NP NP 183 44% 43% NP NPMiller Cooper & Co., Ltd. 0% 0% 0% 0% 20% 20% 20% 20% 166 40% 39% 41% 44%Virchow, Krause & Co., LLP 0% 0% 0% 0% 7% 7% 0% 3% 146 33% 33% 32% 29%Plante & Moran PLLC 13% 13% 13% 13% 14% 22% 22% 11% 134 46% 41% 43% 45%Wolf & Co. LLP 0% 0% 0% 0% 0% 0% 15% 15% 101 50% 48% 45% 48%Frost Ruttenberg & Rothblatt P.C. NP NP NP NP 0% 12% 11% 10% 97 42% 48% 40% 48%Legacy Professionals 0% 0% 0% 0% 40% 40% 20% 20% 89 33% 34% 35% 27%Kerber, Eck & Braeckel LLP 0% 0% 0% 0% 0% 11% 33% 11% 85 60% 44% 52% 56%Ostrow Reisin Berk & Abrams, Ltd. 0% 0% 0% 0% 8% 8% 8% 9% 85 48% 36% 46% 43%Lindgren, Callihan, Van Osdol & Co., Ltd. 0% 0% 0% 0% 18% 14% 14% 0% 84 43% 41% 44% 41%Bansley & Kiener LLP 0% 0% 0% 0% 0% 0% 0% 0% 73 40% 33% 34% 34%Mueller & Co. LLP 0% 0% 0% 0% 0% 0% 0% 0% 72 69% 67% 67% 70%Mayer Hoffman McCann P.C. 0% 0% 0% 0% 0% 0% NP 0% 67 43% 41% 43% 42%Reznick Group, P.C. NP NP NP NP NP NP NP NP 64 30% 28% 31% ***Warady & Davis LLP 0% 0% NP NP 11% 11% NP NP 63 40% 30% *** ***Smart Business Advisory and Consulting LLC 0% 17% NP 11% 7% 0% NP 7% 57 37% 36% *** 48%E.C. Ortiz & Co., LLP (b) 0% 0% NP NP 75% 100% NP NP 53 74% 75% *** ***Ganim, Meder, Childers & Hoering, P.C. 0% 0% NP 0% 7% 7% NP NP 53 60% 64% *** 74%Gray Hunter Stenn LLP 0% 0% 0% 0% NP NP NP NP 48 52% 50% 50% 51%Michael Silver & Co. 0% 0% 0% 0% 0% 0% 0% 0% 45 44% 38% 38% 39%West & Company LLC 0% 0% 0% 0% NP NP NP NP 45 56% 55% 65% 65%DiGiovine, Hnilo, Jordan & Johnson, Ltd. 0% 0% 0% 0% 42% 36% 36% 40% 44 45% 51% 49% 49%Porte Brown LLC 0% 0% NP 0% 0% 0% NP 0% 44 36% 28% *** 28%Heinold-Banwart, Ltd. 0% 0% 0% 0% 0% 0% 0% 0% 43 65% 58% 59% 59%Topel Forman LLC 0% 0% NP NP NP NP NP NP 43 42% 39% 41% ***Selden Fox, Ltd. 23% 23% 10% 14% NP NP 50% 40% 42 24% 28% 24% 24%Shepard, Schwartz & Harris LLP 50% 50% 50% 50% 30% 0% 30% 30% 42 48% 45% 43% 49%Corbett, Duncan & Hubly LLC 0% 0% 0% 0% 0% 0% 21% 33% 39 46% 53% 58% 55%Coleman Joseph Blitstein & Stuart LLC 0% 0% 0% 0% 0% 0% 0% 0% 36 33% 22% 38% 31%Kessler, Orlean, Silver & Co., P.C. 0% 0% 0% 0% 0% 100% 0% 0% 35 40% 35% 31% 26%Eric J. Fernandez & Co. 0% 0% 0% 0% 15% 15% 8% 7% 34 50% 50% 59% 60%Martin, Hood, Friese & Associates, LLC NP NP NP NP NP NP NP NP 34 50% 52% 55% 56%Silver Lerner Schwartz & Fertel, CPAs (c) 0% 0% NP NP 0% 0% NP NP 34 47% 47% *** ***Weiss & Company LLP 0% 0% 0% 0% 0% 0% 0% 0% 32 47% 44% 42% 33%Lauterbach & Amen, LLP (b) 50% NP NP NP NP NP NP NP 31 68% *** *** ***Dugan & Lopatka, CPAs, P.C. 0% 0% 0% 0% 0% 0% 25% 13% 30 53% 62% 61% 53%Steinberg Advisors (c) 0% 0% 0% 0% 0% 0% 0% 0% 30 40% 54% 48% 57%Washington, Pittman & McKeever 0% 0% 0% 0% NP NP NP NP 30 50% 52% 53% 53%Cray, Kaiser Ltd., CPAs 0% 0% 0% 0% 0% 0% 0% 0% 26 46% 38% 41% 42%Russell Novak & Company 0% NP NP NP NP NP NP NP 26 38% *** *** ***Krehbiel & Associates LLC 0% NP NP 0% 0% NP NP NP 23 57% *** *** 50%May, Cocagne & King, P.C. (a) 0% NP NP NP NP NP NP NP 22 59% *** *** ***Striegel, Knobloch & Co. LLC 0% 0% 0% 0% NP NP NP NP 21 43% 30% 33% 39%Doehring, Winders & Co. LLP 0% 0% 0% 0% NP NP NP NP 20 40% 35% 53% 47%Borhart, Spellmeyer & Co. 0% 0% 0% 0% NP NP NP NP 19 42% 45% 40% 42%Dunbar, Breitweiser & Co. LLP 0% 0% 0% 0% 0% 14% 13% 14% 19 47% 50% 50% 40%Eck, Schafer & Punke LLP (b) 0% NP NP NP NP NP NP NP 18 28% 33% *** ***J.W. Boyle & Co., Ltd. 0% NP 0% 0% NP NP 0% 0% 17 53% *** 64% 40%Pritchard Osborne LLC 0% 0% 0% 0% 0% 0% 0% 0% 16 19% 13% 14% 0%Graff, Ballauer, Blanski & Friedman, P.C. 0% 0% 0% 0% 0% 0% 0% 0% 14 21% 20% 24% 27%Capin Crouse LLP 0% 0% 0% 0% 0% 0% NP NP 13 46% 40% 60% 50%Rome Associates LLP 0% 0% 0% 0% NP 33% NP NP 4 50% 33% 22% 50%Coleman, Epstein, Berlin & Company LLP NP NP 0% 0% NP NP 0% 0% - *** *** 44% 47%DBH & Associates LLC NP 0% NP 0% NP 20% NP NP - *** 17% *** 17%Hill, Taylor LLC NP 0% 0% 0% NP 20% 17% 17% - *** 50% 45% 50%Kemper CPA Group LLC NP NP 12% 8% NP NP 8% 9% - *** *** 31% 60%Knutte & Associates, P. C. NP NP 0% NP NP NP NP NP - *** *** 39% ***Larsson, Woodyard & Henson LLP NP NP 40% 25% NP NP NP NP - *** *** 62% 67%

Illinois CPA Society's 2009 Survey on the Role of Women in CPA Firms - Percentage of Firm-wide Leadership Positions Held by Women

Total 12,761

CHART 2 - 04.16.09

* All information was provided by the firms. Surveys were sent to 90 Illinois firms that had15 or more professionals as listed in the Illinois CPA Society's Peer Review or MembershipDatabase and the 2008 Crain's Chicago Business list of Chicago's largest accountingfirms. Surveys were mailed in January 2009 and firms were asked to provide the mostrecent available data, but to not use data earlier than December 31, 2008.

*** Firm did not provide information for this year. NP = Information Not Provided

(a) First included in survey population in 2009. (b) First included in survey population in 2008.(c) First included in survey population in 2006.

The following firms declined to participate in the survey for all years: FGMK LLC; GimbalAbrams & Singer; Scheffel & Co.; Sleeper Disbrow Morrison Tarro & Lively.

The following firms declined to participate in the survey for 2009, 2008, 2007, 2006 and 2005:Chunowitz, Teitelbaum & Baerson, Ltd.; Morrison & Morrison, Ltd.; Pasquesi Sheppard LLC

The following firms declined to participate in the survey for 2009, 2008, 2007 and 2006: Brook WeinerLLC; Medical Business Consultants - Midwest, Ltd., CPAs; Professional Business Consultants.

The following firms declined to participate in the survey for 2009, 2008 and 2007: Friedman & HueyAssociates, LLP; L. J. Soldinger Associates; UHY LLP

The following firms declined to participate in the survey for 2009 and 2008: Ahlbeck & Company;Mulcahy Pauritsch Salvador & Co, Ltd.; Wermer Rogers Doran & Ruzon, LLC.

The following firms declined to participate in the survey for 2009: BIK & Co.; Kutchins, Robbins &Diamond Ltd.; Michael James Liccar & Co.; Mowery & Shoenfeld LLC; Smith, Koelling, Dystra & Ohm, P.C.


DEVELOPMENT

Goodbye Training Program?Don’t bid adieu to your staff development dollars quite yet. Find budget-friendly training alternatives instead.

By Renee Beckman, CPA

In an economic downturn, companiesmove into survival mode. Priorities areshifted. Cost cuts are implemented. Per-

sonnel is let go. And those that are leftbehind are forced to manage with fewerresources, perks and rewards. Growth be-comes a priority for the future, just as longas the company can survive the present.

A slew of surveys over the past yearhighlight the fact that training programs, inparticular, are among the first incentives towalk the cost-cutting plank. “Why? Be-cause training is expensive and difficult tomeasure,” says Colleen Coursey, a Chicagocorporate trainer.

Eighteen percent of CFOs interviewed foran Accountemps survey said they don’texpect to offer employee training in thenext two years. Among companies that do

have training programs planned, 30percent will invest in IT skills devel-opment and another 26 percent fore-see offering courses in accountingand finance. Average training expen-ditures per employee has fallen 11percent in the past year, from $1,202per learner in 2007 to $1,075 in2008, according to a Bersin & Asso-ciates report issued in January. Andthe US corporate training marketshrank from $58.5 billion in 2007 to$56.2 billion in 2008, the greatestdecline in more than 10 years,Bersin & Associates states.

While employers may be temptedto eliminate training budgets duringlean times, investing in staff educa-tion is a vital tool for retention andbusiness growth. “Human capital isan organization’s single most impor-tant resource. Ensuring they performwell shouldn’t even be a question,”says Coursey.

As the economy gets stronger, cor-porations need to stay ahead of their

competitors and position themselves forhigher productivity and profitability. Whiledoing more with less may work in the shortterm, in the long term organizations will suf-fer. Companies will start to feel the financialeffects of the layoffs—lower productivity,reduced performance, unnecessary over-time, low morale and increased turnover(including the loss of intellectual capital andcompany knowledge). The cost of employeeturnover to for-profit organizations, in fact, isestimated to be up to 150 percent of theemployees' remuneration package.

Rather than cutting training loose entirely,wouldn’t it make more sense to find an alter-native, less costly way to invest in your peo-ple? After all, if you found training valuableduring the fat years, doesn’t it stand to rea-son that it’s important in lean times as well?Isn’t it all about maintaining a competitiveedge? Isn’t that the key to survival?

As they watch their budgets shrink, busi-ness and finance professionals are indeedlooking for low-cost training options thatcan still get the job done without an expen-sive price tag. The following four strategiesoffer companies the chance to do just that.

1. eLearning The advantages of eLearning are many. Forstarters, it’s easy to deliver and available24/7, fitting into pretty much any schedule.Because there are no travel expensesinvolved or trainer salaries to pay, the costsare comparatively low as well. Accordingto Training Magazine, corporations savebetween 50 and 70 percent of costs whenreplacing instructor-led training with elec-tronic content delivery.

Opting for eLearning also means thatcourses can be pared into shorter sessionsand spread out over several days or weeks sothat companies don’t lose access to theirhuman capital for entire days at a time.

Tax Marketing 101The most valuable training a tax preparer can ever get

Don't waste another dollar on marketing before you

check this out

TaxMarketing101.com

check this outon marketing before you

t waste another dollar 'Don

check this outon marketing before you

t waste another dollar

axMarketing101.comTTaxMarketing101.comaxMarketing101.com

aining a tax preparer can ever getax Marketing 101

The most valuable training a tax preparer can ever getThe most valuable trTTax Marketing 101

axMarketing101.comTTaxMarketing101.com

aining a tax preparer can ever getax Marketing 101ax Marketing 101

axMarketing101.com


2. Mentoring A dynamic relationship between a mentor and a protégé can bevaluable not only for the participants involved, but also for the com-pany. Think increased production, greater job satisfaction, higheremployee retention and lower costs—again due to the fact thatcompanies are not paying for an instructor or reimbursing for travel.

That said, the actual cost of a mentoring program does vary, par-ticularly in terms of the time invested by both mentors and their pro-tégés. Although this cost is not as obvious as an outright purchase,it can be substantial. In terms of maintenance, however, mentoringprograms are usually extremely cost-effective—just as long as youstructure them effectively from launch.

If budget is an issue, take a look at one of the several books andarticles written on this topic. Also visit the web, where you’ll findsites, newsletters and discussion groups devoted to mentoring.

3. Professional Associations One of the many benefits of joining a professional association is thecontinuing professional education (CPE) it offers, often at dis-counted prices. Particularly for professionals such as CPAs, who arerequired to meet minimum CPE requirements to hold a license,company or individual membership in an association can be a cost-effective way to ensure fingers are kept firmly on the industry pulse.

There are other benefits too. Because associations are eitherregional or have local chapters, travel costs are kept to a mini-mum. And because CPE is targeted in terms of profession or indus-try, classes offer indispensable networking opportunities as well—another potential source of business growth for companies.

It’s a good idea, too, to have your staff share what they’velearned with their colleagues once back at the office. Knowledgesharing is yet another way to maximize limited training dollars.

4. Internal Talent Your staff consists of individuals with expertise in specific areas ofbusiness. As such, these individuals may be interested in lendingtheir expertise in a more formal setting—as in-house instructors.

For instance, if you have an IT specialist on staff, and youwant to develop your finance department’s IT knowledge, thenwhy not ask that specialist to devise and lead a training session.An added advantage is that these training sessions can be highlycustomized, rather than following a “one-size-fits-all” format.

Considering how important skills development is to overall jobsatisfaction, and how rewarding it is to be recognized as an expertin your field, utilizing internal talent in this way is pretty much awin-win—and it comes at no direct cost to the company.

Whether a webinar, a brown-bag lunch, or anything inbetween, these sessions build a strong tradition of learning, andcreate a culture that will motivate current employees and attractfuture talent.

Staff members understand the reasons behind cost cuts. Therecession, after all, impacts us all. They need to see, however, thattheir company is making an effort to maximize its limitedresources for their benefit. If they do, then their loyalty may bethat much more easily won.

ICPAS member Renee Beckman, CPA, is a principal at Pareto, Inc.,

a finance, accounting and IT permanent and temporary staffing firm.

She can be reached at 312.214.6144 or [email protected].


Set the StandardHow do you define success in an uncertain economy?

By Dean K. Matt, CPA

“How am I doing?” In the 1980sNew York’s Mayor Kochcould be heard asking this

question all over the five boroughs as hegreeted his constituency. His connectionwith New Yorkers was his transparency andaccountability—a far cry from his predeces-sors and, more recently, the scandal-plagued government leaders in Illinois.

“How are we doing?” is also a questionasked today at businesses all over America.It’s asked by shareholders and owners won-dering if they are getting an adequate rateof return, managers inquiring if the budgetbar is appropriately set, employees wonder-ing if their company is financially viable,creditors wondering if their loans will berepaid, and companies wondering if theircustomers and clients are indeed loyal.

Our current economic woes have theirroots in the highflying 1990s. Consump-tion—of just about everything—was highlyfashionable. Savings rates became nega-tive. Then credit became easy (rememberthe volume of credit card offers you’d get in

the mail?). Credit cards were maxed-out.Home values rose at a frenzied pace andthis allowed for new credit products. Exoticmortgages and home equity lines of credit,in fact, enabled homes to be used as ATMs.

Consumption outpaced any conceivablelogic. Ever-rising home values fueled thebubble potential, while everyone defied thelogic that this was the very essence of irra-tional exuberance that Greenspan warnedus of. People erroneously assumed that asupercharged economy and housing mar-ket were sustainable. Now, with the bubbleburst and house foreclosings de rigeur,many Americans are seeing home valuesthat no longer support the home equityloans on which they rely. It will be a long,slow process before meaningful consump-tion resumes.

In more stable times, budgets were setand success was measured based on year-over-year growth of the top or bottom line.Rates of growth were compared to the com-pany’s historical track records and those ofits peers. In other words, in a company withhistoric 15-percent growth, a budget thatshowed 20-percent growth would beviewed as a stretch goal, but not unrealis-tic. The annual budget process should alsoreflect the impact of general economictrends, acquisitions, capital investments,new products and even new personnel.

But how do companies set the bar whenthey’re being confronted with unprece-dented economic negativity? We’re in themidst of an economic tsunami which,arguably, is second in impact only to theGreat Depression. And it’s not over yet.

Should companies take their best shot ata full-year budget and re-budget after thefirst half? After all, there are bonuses,careers, cash flow, strategic plans, and debtcovenants on the line, all depending morethan ever on ownership and managers tocorrectly read the tea leaves and deliver arealistic budget.

STRATEGY

I f you are ready to se l l your pract ice ,s tar t wi th Account ing P r a c t i c e S a l e s .We have thousands of qualified buyersw a i t i n g t o b u y a p r a c t i c e . S e l l i n g

doesn’t have to be painful. Call Trent Holmes today!1.800.397.0249

[email protected]

NORTH AMERICA'S LEADER IN PRACTICE SALES

Sometimes You Need A Pro


There’s a balancing act going on in boardrooms and companiesacross the country. Is it a sign of weakness to allow the economyto dictate negative or even neutral growth or is it just prudent inlight of the facts? What about small companies that are used to 30-or 40-percent growth? How should success be defined during atidal wave of negative economic conditions?

Are all bets off? Is it even meaningful to bonus on performancenot knowing what’s realistic? Where should the bar be set for2009? Unless you have a crystal ball, is it just a crap-shoot or cangoals be methodically deduced? Will employees win at theowner’s expense or vice-versa?

The goal-setting process should continue with the samemethodology as in past years. All available data must continue tobe tapped and evaluated. However, unlike budgeting in previousyears, the margin of error in budget assumptions, naturally, will belarger. Companies and employees must be conscious of this in set-ting bonus-based compensation and in discussing projectionswith their lenders. Despite best efforts in setting these goals, somebudgets will end up being lay-ups for managers, and some willprove to be unattainable, meaning no bonuses at all.

Entrepreneurs and companies must acknowledge to theiremployees that the recent negative economic headwinds will posenew and additional challenges in developing and then attainingtheir business goals. Companies shouldn’t confuse this tacitacknowledgement with a softened attitude towards where the baris set. The very act of acknowledging tough economic conditionswill at least signal to employees that senior management doesn’thave its head in the sand. Simply put, not acknowledging thetough economic environment is a mistake.

Also, now more than ever, owners and senior-level executivesneed to get input into the budget/goal-setting process at all levelsof the organization. It’s important that the mid-manager tier, inparticular, is not unilaterally shut out from the process. And don’tassume that your company is immune to this unprecedented eco-nomic environment. Very few companies are entirely unaffected.

Unfortunately, there isn’t a “one-size-fits-all” formula for com-panies deciding where to set their goals. You have to look at yourindustry’s and company’s particular opportunities and challenges,as well as your previous track record. And you need to assess themost likely impact of new strategies designed to counteract cur-rent economic trends.

On one hand, companies are in the advantageous position ofhaving a captive employee base. It’s an employer’s market, andpeople are realizing they are lucky to have jobs. That said, own-ers shouldn’t confuse an advantageous labor market with licenseto take advantage of their employees. They may be able to getaway with it in the short run, but history tells us that employeeshave long memories and that times will get better.

It’s understandable that owners and executives will demand moreof their people simply to keep the company going. To achieve pasthistorical growth rates, however, will require an even more Her-culean effort. Employee loyalty is essential. Wherever goals are set,it’s crucial to communicate, communicate, communicate, how thegoals will be reached. The troops need to be rallied.

One more thing—now isn’t the time to complain about payingout the same level of bonuses for essentially flat results. Remem-ber that managers will be working as hard if not harder just to getback to neutral. Their efforts need to be acknowledged.

September 8, 2009 - Chicago, Illinois

Executive Roundtable Series:The Transformation of Finance from Watchdog to Strategic Business Partner

Mike MuldoonPresident, Muldoon Consulting, Inc. and Professor, Lake Forest Graduate School of Management

September 25, 2009 - Rosemont, Illinois

Midwest Financial Reporting Symposium

upcoming events

www.CCFLinfo.org

The Center for Corporate Financial Leadership is a service of the

Illinois CPA Society

TAX

Small Biz, Big ImpactTax act provisions could mean significant changes for the nation’s small businesses.

By Harvey Coustan, CPA

Anumber of provisions in the 2009American Recovery and Reinvest-ment Tax Act could impact small

business tax planning in a number of ways.Among these provisions is an extension ofthe years available for carrying back netoperating losses and deferral of incomerecognition for cancelled debt (CODincome). Both deserve some explanation,particularly in light of the current eco-nomic downturn.

Carryback ReliefUntil the Act was passed, a net operatingloss generally could be carried back only tothe second year that preceded the year inwhich the loss was incurred. After the taxesfor that year were recouped, any remainingloss could be carried to the year immedi-ately prior to the year in which the loss wasincurred. Unused loses after that applica-tion could be used to offset income in the20 years subsequent to the loss year.

The Act allows an “eligible small busi-ness” to elect to carry its 2008 net operat-ing loss back 3, 4, or 5 years. For fiscal year

small businesses, the 2008 loss will beeither a year ending or beginning in 2008.An eligible small business is a corporation,partnership, or proprietorship whose aver-age annual gross receipts for the three-yearperiod ending with the year of loss are $15million or less.

The owner of an eligible business entity(partnership or S corporation) can make theelection with respect to his or her share ofthe allocated amounts. In determining aver-age annual gross receipts, eligible busi-nesses will be aggregated if certain com-mon controls are present. In March, the IRSpublished Revenue Procedure 2009-19with guidance for making the election incertain situations.

For those taxpayers who have not filed areturn for the loss year, a statement of theelection must be included with the return,which itself must be filed in a timely man-ner (including extensions). The statementmust clearly state that the taxpayer is elect-ing to apply Internal Revenue Code section172(b)(1)(H), the carryback period chosen(3, 4, or 5 years) and, if applicable, muststate that the election is made for the yearbeginning in 2008.

The method for making the election isdifferent if the taxpayer has already filed areturn for the 2008 loss year. In this situa-tion, a refund claim or tentative carrybackapplication for the earliest year to whichthe loss is carried must be filed within 6months of the return’s un-extended duedate. July 15, 2009, therefore, would be thelast day for a corporation filing such a formif the loss year ended October 31, 2008.

The form must contain a statement withthe typed or printed heading “2008 NOLCarryback Election Pursuant to Rev. Proc.2009-19.” If a refund claim or tentative car-ryback application has already been filedwithout the extended carryback election,the statement must be headed with theword “Amended.” The form should containa statement that the taxpayer is electing to



apply the rules contained in §172(b)(1)(H) to a year beginning in2008 if that is the case.

Although no rules are provided for the losses a partnershipincurs, the process of filing individual refund claims and tentativecarryback applications also should be applied at the partnerlevel. How to determine due dates isn’t indicated in cases wherea partner has a different yearend or due date than the partnership.

COD IncomeIn another taxpayer friendly gesture, the Act contains a provisionthat allows taxpayers to defer recognition of certain COD incomerealized on the “reacquisition” of an “applicable debt instru-ment.” The income can be deferred for 4 or 5 years and thenreported over a 5-year period, so that an electing taxpayer canreport the COD income that results from an acquisition of its debtin 2009 ratably over years 2014-18.

An applicable debt instrument is one that is issued by a C cor-poration or any other “person” (i.e. an individual, trust, estate, orpartnership) in connection with the conduct of a business. “Debtinstrument” refers to a bond, debenture, note, certificate, or con-tractual arrangement that constitutes indebtedness under the orig-inal issue discount rules. A reacquisition occurs when an issuingdebtor or other obligor or person related to the debtor makes adebt instrument acquisition.

This acquisition can take the form of a cash purchase,exchange of another debt instrument (which can include modifi-cations to a single debt instrument), exchange of debt for stock ora partnership interest, and the contribution of the debt instrumentto capital. The holder’s complete forgiveness of the debt will alsoconstitute an acquisition.

As of the day I am writing this column, the IRS has not issuedany guidance in this area, but the law indicates that the electionis irrevocable and is made with the taxpayer’s return for the yearof the reacquisition. It asks for a clear identification of the debtinstrument and the amount of income covered by the election,along with any other information required by the IRS.

For partnership debt, the partnership makes the election. Thiscan put the general partner or managing member of an entitytreated as a partnership in a difficult position, since different part-ners may have different tax needs. Some may want the deferral,others may not.

As a matter of fact, certain exclusions with respect to CODincome cannot apply if the debtor elects the deferral treatment.The exclusions provided in Title 11 or insolvency situations donot apply, and exclusions provided if the discharged debt is“qualified farm indebtedness” or “qualified real property businessindebtedness” are also unavailable.

Certain events will trigger immediate recognition of thedeferred amounts—the taxpayer’s death, asset liquidation orsale, or the business’ cessation, for example. The sale, orexchange or redemption of an owner’s interest in a passthroughwill also result in a triggering of the deferral—hopefully onlythat portion of the deferral that has been allocated to the owner,although this isn’t clear.

The rules apply to discharges in years ending after 2008. IRSguidance is needed.

Harvey Coustan is an Ernst & Young retired partner. He is presently

consulting on substantive technical and professional standards

issues and has been an expert witness in a number of cases.

investorsdesperately seeking

By sheryl nance nash

Businesses are searching high and

low for scarce investment dollars.

F inding money during a recession is a bit like walking

into an empty field with a pair of binoculars and hop-

ing to spot a pot of gold. And even if you haven’t seen

that telltale sparkle in the midst of all that dirt, the truth is,

there’s still money out there—if you look hard enough and

long enough, and if you’re prepared to be creative.


“Before, in bad times good companies could always getfinancing. Now, it’s really difficult, but not impossible, forgood companies to find money,” says Van Conway, presidentand senior managing director of turnaround consulting firmConway MacKenzie Inc.

Impress a Venture CapitalistRisk-loving venture capitalists are more cautious today than theywere just a few years ago. “The steady drum beat of bad newshas made some VCs think twice,” says Bill Venema, a corporatelawyer with Epstein Becker Green Wickliff & Hall. “Conse-quently, they are taking moves to protect themselves when theyenter what is a riskier environment and, in some respects,uncharted water as the economy resembles little that is familiar.They are putting in provisions that if certain milestones are notmet as planned, then they will be eligible to take a larger per-centage of the company,” Venema adds as an example.

But not everyone is running for cover. Google recentlyannounced the creation of a venture capital arm, Google Ven-tures, which is expected to invest up to $100 million over thenext year. Google is reportedly targeting areas such as theInternet, clean technology and life sciences.

How do you impress a VC? For starters, “They’ll want to seethat you have some money in the bank, a revenue stream,customers and a stellar management team,” says SteveLundin, head of Chicago’s Big Frontier CommunicationsGroup. “Venture capitalists are very attuned to who’s in thespotlight,” he adds.

Lundin’s recent survey of US-based technology startup andearly stage companies found that companies engaging in pub-lic relations campaigns were 30 percent more successful inattaining funding within one to three months than companieswithout a campaign. Beyond your public persona, though, oneof the keys to attracting VCs right now is to have a scrupulouslycrafted business plan that pays attention to what’s happeningin the marketplace, explains Lenny Sokolow, president andvice chairman of National Holdings Corporation, an inde-pendent broker-dealer.

“Some popular VC sectors include clean technology, life sci-ences, certain consumer products, and online services thatcreate exchanges. As in all things, it’s important to do your

homework, and discover what venture capitalists find of inter-est these days,” he says.

Remember that you only get one chance to make a goodimpression. “If you screw up, the meeting is over. Have yourducks in a row, clearly state the value proposition, don’t over-state revenue projections or you’ll lose credibility,” says Ven-ema. In fact, it’s best to be conservative. Then anything overyour stated projections makes you look absolutely fabulous.

It’s a good idea, too, to have a strong advisory board or boardof directors in your corner. And “It’s always best to meetprospective venture capitalists through an introduction, say youraccountant, lawyer, friend, or through business conferences,”says Sokolow.

“VCs on both coasts are active as always, but they are morestringent than before. If you have proprietary software orpatents, you’ll get their attention. If you have a business modelthat’s little more than a new way to do French fries, you mightnot get very far,” he warns.

Venema isn’t as optimistic about the potential to capture VCinterest, however. “VCs are most assuredly not as active asalways,” he says, quoting an April 2009 FierceCIO article:

“Venture Capital firms are facingtough times these days,” the arti-cle explains. “They logged just549 deals during the first quarterof 2009 with $3 billion in invest-ment. That’s almost 50-percentless than the $5.7 billion invest-ment and 866 deals in the lastquarter of 2008.”

If you do get VC investment, itwon’t come cheap. “A lot ofequity funds can get a seniorposition at 50 cents on the dollar,effectively owning the company.VCs are about return on capital,so they are expensive capital,”says Conway.

Tap Heavenly Sources While they still have their wings,

today’s angel investors are flying with a little less cash in theirpockets. “Even wealthy, accredited investors have seen their networth dissipate by 30-60 percent, and so we’ve seen a corre-sponding diminishing in angel investing,” says Sokolow.

Not surprisingly, angels are benchmarking their expectations.“They know they won’t get immediate returns on their money,so they are looking for companies promising greater returns thanin the past from those who are considered less risky. Angels canseek 30 times their return over five years,” says Lundin.

“The key to targeting angel investors is to understand theirinvestment focus. Venema explains: “The Post-Investment

Period of Business Angels: Impact and Involvement (Macht,July 2007) states that, ‘[B]usiness angels tend to invest in busi-nesses within their own locality. This may be because activeinvolvement may only be feasible if the business is within easyreach. Unsurprisingly, business angels also tend to invest inbusiness sectors in which they have personal experience. Onestudy...revealed that around a third of business angels investsolely in business sectors in which they have had prior work

experience. Around two-thirds of business angels, however,have made at least one investment in a business sector withwhich they were unfamiliar.’”

Whatever their focus, one thing is true of all angels: You’llneed to show them that you have business in the pipeline. “Ifyou have a great idea, but no money, you’ll likely have nodeal. It will be harder to find money,” says Conway.

What’s more, in this down economy, your presentation has tobe flawless. “If they don’t get it, forget it,” says Lundin.

Knock on Your Banker’s DoorDespite all the bailouts and stimulus activity, it’s still tough toget money from a bank. “A lot depends on which bank youapproach, what industry your company is in, and how youplan to use the proceeds,” explains Scott George, managingdirector of Plante and Moran Corporate Finance in Chicago.

“Banks are still gun shy,” says Lundin. “If you do get a loan,it may cost you more in time, effort and interest. Loan limitsare lower and loan committees are getting more stringent. Ifyou’re a good customer with a bulletproof plan and have col-lateral, then you can get a loan. If you don’t have stellar credit,you’re unlikely to get a loan. The banks can’t afford any morescrew ups like the housing defaults. Be prepared to jumpthrough the hoops to get the money,” he says.

“I have a deal that I’m working on where a 9-year-old,established company wants to purchase land and a buildingfor a medical facility,” says Venema. “The bank wants 30-per-cent down, guarantees from key investors and more. Thecompany had existing credit with the bank and now it’s try-ing to renegotiate. But the bank is asking for a much higherinterest rate and still may not give the loan. Credit is the lifebread, the air of the economy; the lending situation is distress-ing,” he says.

Though banks aren’t lending much on the commercialbusiness side, since early 2009 there has been a loosening ofleasing credit, says Sokolow. “Interest rates for leasing creditmight be high, but there’s some blue sky visible there, and itpromises to open up in just a matter of time.”

The government is playing in as well. It currently guaran-tees up to 85 percent of loans in the SBA’s 7a program onamounts below $150,000, and up to 75 percent on largerloans. The government will temporarily increase the guaran-tee to 90 percent to entice banks to open the lending gates.The SBA’s 504 program guarantees up to $4 million worth ofeconomic development projects for small businesses. And theObama Administration will temporarily eliminate fees forlenders and borrowers participating in the program. What’smore, the government will temporarily eliminate upfront feesfor 7a loans that banks charge borrowers—typically as high as4 percent for larger loans.

Fish in Other WatersIt’s time to venture beyond traditional avenues if you want toup the odds of filling your coffers. “We’re starting to seesmaller, intermediate peer-to-peer lending becoming increas-ingly popular,” says Sokolow. “These channels, such as The-LendingClub.com, use something similar to the micro-lendingmodels to allow investors to circumvent the banks and makepersonal business loans of up to $25,000, with an average of

$10,000,” he explains. “It’s a very sophisticated, elegant solu-tion that’s gaining a lot of traction.”

Utilize free resources such as www.vfinance.com, Sokolowadvises. This is a primary online connection point betweenserious-minded entrepreneurs and the capital industry.

Borrowers are also exploring specialty financing sourcessuch as GE Credit and Goldman Sachs Specialty LendingGroup. Shop around to find the one best suited to yourneeds and industry, says George.

Mezzanine financing is also getting a second look. Thishybrid of debt and equity financing is typically used to eitherfinance the expansion of existing companies or fund acquisi-tions. It is essentially debt capital which usually provides thelender with the right to convert a portion of its investment intoan ownership or equity interest in the company.

What’s the attraction with mezzanine financing? It’s treatedlike equity on a company’s balance sheet and may make iteasier to obtain standard bank financing. “Borrowers can usethis money to bridge the gap between available senior debtand the total funding requirement of the borrower. But mez-zanine capital can be expensive, with all interest costs cur-rently in the 17 to 23 percent range,” says George.

Also consider a private equity fund. “While most PEinvestors primarily seek to make control investments, manyare becoming much more open to purchasing minority stakesin businesses, while allowing current management to retaincontrol of the company,” George explains.

For mature companies, a private placement might be agood choice. In this scenario, a group of people or institutionsprovide equity or debt capital to a company. Private place-ments are privately offered and are restricted to qualified indi-viduals, usually defined as someone with a net worth of atleast $1 million.

What’s the key benefit? The securities being sold do nothave to be registered (which is very expensive). Confidential-ity, however, has been reduced by recent changes in Regula-tion D, says Venema, which now require Form Ds to be filedelectronically, making them readily accessible to the public.

“There are federal and state rules that have to be followedclosely, and potential investors would have to have significantcash to spare. But there are entities that have cash on handlike pension funds,” he says.

Be RealisticGrasp the realities of the current economic climate. Don’tlook back at prices and terms that you could have gotten acouple of years ago. That’s history. Expect to get less than youplanned. Don’t wait until you are desperate to seek money.

“Anticipate your financing needs as far out as possible,since the more time you have to explore your alternatives, thebetter your options will be,” says George.

Lastly, says Sokolow, “Beware of people making easypromises, and be wary of upfront payments. Be diligent, bepatient, be persistent.”

If realistically there is no chance for you to raise moneytoday, “The best thing to do is wait until the lenders crawl outof their caves,” says Conway. “You don’t want to go down thepath of seeking capital where you have zero percent chanceof being successful and take your eyes off your business.Focus on your business and wait. Things will turn. ”



I t’s easy to overlook what’s happening in the nonprofit sectorwhen corporate losses and layoffs are dominating the head-lines. But they too are facing significant headwinds due to cur-

rent economic conditions. What’s most troubling is how severelyIllinois’ economy and society could be affected if its nonprofits areunable to withstand the recession.

Illinois Nonprofits in PerspectiveIn 2007, registered Illinois nonprofits employed 427,653 peopleor 7.3 percent of the entire state’s workforce as reported by the Illi-nois Department of Employment Security. That’s more than Wal-greens and Boeing combined.

Over the years the growth of nonprofits in Illinois has trendedup with the state’s population. Recent data from the National Cen-ter for Charitable Statistics and the Internal Revenue Servicereveals that 66,459 nonprofit organizations were registered in thestate in 2008, most likely meaning that current nonprofit employ-ment is much larger than it was in 2007.

What’s more staggering is the amount of money nonprofits cir-culate through our economy. Looking back to 2006 (the mostrecent statistics available), Illinois nonprofits brought in roughly$55.5 billion in revenues, then redistributed more than $55.2 bil-lion of it back into the economy through wages, procurements andother operating expenditures.

Research gathered for the Donors Forum Illinois Nonprofit

Economy Report, 2008, estimates that nonprofits pay their work-ers more than $16.5 billion annually. The same report reveals thatnonprofits create 9 percent of Illinois’ state product, which isabout the same as the finance and insurance industries together.

You may have questioned how significant the nonprofit pres-ence is in Illinois, but there is no doubt that it is critical to thestate’s social and economic wellbeing. In fact, every county in thestate has a nonprofit presence.

But conditions have changed drastically over the last couple ofyears. Today, our vast nonprofit sector is under significant straindue to the withering economy.

By Derrick Lilly

capitalconscience

Nonprofits are

feeling the pinch.C


The Recession’s Impact“It’s very likely that some nonprofits will not be able to continueoperations,” says Claudette G. Baker, VP of library and nonprofitservices at Donors Forum in Chicago, a nonprofit membershipassociation that promotes philanthropy and a strong nonprofit sec-tor throughout Illinois.

“It’s estimated that 10 percent of not-for-profits may have toclose or merge with another group, and many more will be cuttingback,” says Daniel Borochoff, president and founder of the nation-ally acclaimed charity watchdog, the American Institute of Philan-thropy. “We’ve already had major groups close down that havebeen around for many decades.”

Like many for-profits, nonprofits are shuttering their doors ortightening their purse strings in this challenging economy—but notby choice. Demand for nonprofit services is increasing, while theiroperating revenues and assets are declining. “Many people thatgave last year are now asking for services from these nonprofits,”says Borochoff.

Sadly, widespread declines in corporate, foundation and indi-vidual giving are leaving many stressed organizations questioning

Think Before You Give 1. Know the Organizat ion. Never give to an organizationyou know nothing about.

2. Know Where Your Money Goes. Ask how much of yourdonation is designated for general administration and fundrais-ing expenses and how much supports actual programs.

3. Don’t Cave Under Pressure. No legitimate organiza-tion will pressure you to give immediately.

4. Record Your Donat ion. Obtain a receipt or printed copyof your donation for tax purposes.

5. Know Your Deduct ion. If the charity doesn’t have a taxexempt letter indicating its status with the IRS, you can’t legiti-mately claim your contribution as a tax deduction.

6. Don’t Be Misled by a Name. Some organizations usenames that closely resemble respected organizations. Checkout the organization thoroughly before making a contribution.

7. Don’t Fall for a Sob Story. Pulling on emotional stringsis a favorite of some organizations.

8. Ask if the Organization is Registered with Federal,State and Local Authorities. Registration does not, how-ever, mean government endorsement.

9. Beware of Gifts . Don’t feel that you have to make a con-tribution to keep “gifts” included in direct mail solicitations. Itis against the law for a charity to demand payment for anyunordered merchandise.Source: www.charitywatch.org

“Between 2005 and 2007, 2.7 million

volunteers dedicated 302.9 million hours of

service. Estimated economic contribution:

$5.9 billion annually.”

[Source: www.volunteeringinamerica.gov]

Want to Volunteer? The Illinois CPA Society (ICPAS) connectsits members and staff with the community through a variety ofvolunteer-based service programs, including:

Military Service Tax Preparation Project (MSTPP) The MSTPPis a free, volunteer-based, year-round program created as an effortto ease one of the many burdens of overseas deployment and com-bat duty. Developed in partnership with the Internal Revenue Service(IRS) and their Volunteer Income Tax Assistance program, theMSTPP provides members of the US Armed Forces who haverecently returned from or are still deployed in a combat zone or qual-ified hazardous duty area with personal income tax filing assistance.

With the program in its sixth year, the ICPAS works diligently toconnect volunteer CPAs with qualifying military personnel and theirfamilies to help them meet IRS guidelines and take full advantageof the combat zone tax benefits, exclusions and exceptions avail-able to them.

“A lot of times these families don’t know the tax code and some ofthe benefits they are entitled to with active duty and the earnedincome credit. Hopefully we are able to bring that to light for themand maximize their deductions for the year,” says Matt Barton, a for-mer sergeant in the US Marine Corps, who is now a CPA with Fred-erick A. Weinberg & Company in Vernon Hills, Ill.This year alone more than 70 volunteer CPAs have been matched

with military personnel and families. Volunteers are provided with IRSmilitary tax resources to aid in the process, and the only volunteerrequirement is the CPA certification.

CPA Board Connection Is recruiting board members a challenge fornonprofits? “Yes, yes, yes!” proclaims Kathy Matthews, executivedirector of the Elgin Youth Symphony Orchestra. “There are a lot ofnonprofits now that need good board members and there are neverenough to go around.”

The web-based CPA Board Connection is a volunteer initiativeestablished by the ICPAS in conjunction with its community servicearm, CPAs for the Public Interest (CPAsPI). It is designed to build

their abilities to meet their objectives. “There’s a challenge of,‘How do we fulfill our missions in this tough economy with lim-ited resources?’ Those resources are human as well as financial,”says Baker.

According to a recent Donors Forum survey, 45 percent of itsnonprofit and grant-maker respondents said they are operatingwithout reserves or that their reserves have declined. Between ris-ing costs and funding cuts, their ability to meet the demand forservices continues to decline, and future outlooks are bleak. Theoverall consensus amongst nonprofits and grant-makers is that thesector has not yet witnessed the full impact of the recession.

“It’s a real challenge,” says Baker. And adding to the struggles ofmany organizations are government cuts or delays in payments andfunding. “The not-for-profits that do have government projects aredependent on the state paying their bills in a timely manner. If theydon’t get paid while they’re providing much needed services to indi-viduals, that shortfall will have to be made up someplace else.”

Making up that shortfall will be even more challenging now thatthe 2008 Bank of America Study of High Net Worth Philanthropy

reveals that even the affluent are reining in charitable giving.Donations from these individuals declined an average of 9.7 per-cent in 2007 from 2005. Considering that the affluent often bal-ance their charitable giving and volunteerism against their finan-cial portfolios, all estimates suggest that giving in 2008 may havedecreased even more than it did in 2007, and may continue todecline while economic and market woes persist.

What’s worrisome is the fact that high net worth households(households with incomes greater than $200,000 and/or networths of at least $1 million excluding the value of their resi-dences) are accountable for 65 to 70 percent of all individual giv-ing and 49 to 53 percent of giving from all sources, including cor-porations, foundations, and living and deceased individuals.

“Giving is closely tied to GDP and personal discretionaryincome, so it will follow the economy,” Borochoff explains.“Loyal, long-term, wealthier donors, or anyone in a position togive more, are being asked to do more, but they have their limits.Once that avenue has been exhausted it’s going to be tough.”

What this means is that nonprofits will continue to face mount-ing challenges as they try to provide quality services on tighter

budgets. Ultimately, their inability to operate will hurt our societyand economy as a whole: Unemployment will rise; state productwill decline; purchasing power will evaporate; homelessness,hunger and substance abuse will spread; and the masses will bewithout essential services.

Why Get Involved? The true fallout of mass shutdowns or layoffs at Illinois’ nonprofitswill be far-reaching, but statistics and finances aside, the servicesnonprofits provide to our society are invaluable. “Not-for-profitsexist to solve or meet urgent community needs, because governmentand for-profits can’t do it all. Not-for-profits help define a healthycommunity and the vitality of a community,” says Baker.

From cancer research and suicide prevention, to promoting thearts and wildlife conservation, there is a nonprofit in Illinois fornearly every cause imaginable. “The field is so diverse. Everybody,no matter what their views or opinions, can find groups that willmatch their values and convictions,” says Borochoff.

Donors Forum estimates that more than 700 million hours ofvolunteer work is completed by Illinois nonprofits annually, but asBaker notes, increased demand for services means nonprofit needsare stretching further than ever before. “There are a number ofways for people to get involved in addition to their money. A vol-unteer’s time is valuable,” she says.

As a professional, try volunteering your time, providing pro bonoprofessional services or serving as a board member. Between newfiling requirements, Form 990 amendments and the many financialissues surrounding nonprofits, Borochoff explains that, “There is avery strong need for financial professionals to participate in not-for-profit organizations. A lot of groups would be quite interested if aCPA was willing to participate in their organization.”

Nonprofits are an essential component of our economy andsociety. Through charitable giving and volunteerism you can bet-ter yourself and your society on a daily basis. So make a differencein your community; get involved professionally and socially, andwhile you’re at it, encourage your family and peers to becomeactive philanthropists as well.

Additional resources and the Donors Forum reports referenced inthis article can be downloaded at www.donorsforum.org.

bridges between the accounting community and Illinois’ many nonprof-its. Whether it’s due to size or budgeting, many nonprofits don’t havethe luxury of staffing a CPA or finance professional. The beauty of the CPA Board Connection is that nonprofits of all

types use it, and previous nonprofit board experience isn’t always arequirement. Whether you are interested in supporting the arts orcombating life-threatening illnesses, there is an opportunity out therefor you amongst the CPA Board Connection’s current 150-plus list-ings. What’s more, the ICPAS offers workshops for potential boardmembers and professionals who want to get a grasp on the legal andfinancial responsibilities nonprofits shoulder. “If a nonprofit wants to be sustainable it has to have a board of

directors. Eventually the founders are going to leave, and there needsto be a strong infrastructure to keep that nonprofit going. That’s donethrough the board; they are the people that are going to sustain anorganization,” says Matthews.

Making the Grade In February and March of this year, the ICPASpartnered with Ladder Up, a Chicago-based organization that pro-

vides tax and financial aid assistance to low-income families. The goalof the partnership is to connect volunteers from the ICPAS’ YoungProfessionals Group with Chicago Public School students and theirparents in need of assistance to complete the Free Application forFederal Student Aid (FAFSA) form.

The FAFSA form is imperative to low-income college-bound stu-dents because it determines their eligibility for federal, state and col-lege-sponsored financial aid, including grants, loans and work-studyprograms. Correctly filing the form can offer a life preserver for many,but a simple mistake can quickly leave applicants in dire straits.Because of the form’s complexity, volunteers with a grasp of financialterminology and tax forms is invaluable.Seeing success in the pilot program, the ICPAS’ CPAsPI arm plans

to continue participation and to open the program to all who are inter-ested in volunteering at the various Chicago Public Schools.

For more information about ICPAS volunteer opportunities contact JillWiles, community service manager, at [email protected], or visit the“volunteer” tab at www.icpas.org.



Jeff Nabers is the founder of the IRA Association of America andCEO of Nabers Group, which specializes in self-directed retire-ment accounts. Perhaps surprising to some, he suggests that, in adepressed economy, investors turn to investment strategies suchas real estate, commodities and even private companies. “Alter-native investments are a way for individuals to distance them-selves from the lies and greed of Wall Street in the interest of theirown financial security,” he contends. Dan Deighan, founder andprincipal of Deighan Financial Advisors, agrees. “It’s importantright now to focus on hard assets like real estate and energy asopposed to paper assets,” he says. “The volatility that everyone isexperiencing these days, and the significant drops in their paperassets such as stocks and bonds and so on, is due to the fact thatthey are liquid. They sell every nano-second.”

InvestmentsRecession-Proof

By Carolyn Tang

We’ve seen the collapse of glorified investmenthouses, government takeovers of bereft cor-porations and a steep downturn in the mar-

kets that some say is even harsher than that of the GreatDepression. Given these conditions, the question ofwhere to put your investment dollars is a heady one.Should the money be invested, or should it be stasheddeep under a mattress to ride out the storm?


Real EstateReal estate is a prime example of a tangible good. “It has intrinsicvalue, which means it has worth in and of itself,” Nabers explains.“Unlike a piece of paper, which represents something of value, realproperty actually is something of value.”

The real estate market may be an area of particular opportunityright now, due to the fact that existing home sales continue to be softand prices remain depressed. According to the National Associationof Realtors® (NAR), in February 2009, existing home sales in theUnited States were 4.6 percent down year-over-year. Commercialreal estate follows a similar trend as losses in the job market continueto reduce demand for office space. The NAR’s Commercial LeadingIndicator for Brokerage Activity, which tracks market behavior inmajor commercial real estate sectors, fell 6 percent to an index of109.2 in the fourth quarter, from a downwardly revised reading of116.1 in the third quarter. The slowing index means commercial realestate activity, as measured by net absorption and the completion ofnew commercial buildings, is likely to weaken further over the nextsix to nine months.

What’s more, “The supply-and-demand curve favors investment-grade real estate because, right now, construction projects are all onhold or have been shut down. It’s going to take awhile for that supplyto recycle after we get back on top of the economy,” Nabers explains.

However, he cautions that many people invest in real estate for thewrong reasons. Many will purchase property expecting it to appreci-ate, eventually being sold for a gain. “This was temporarily reward-ing during the real estate bubble, but the timeless concept of invest-ing is based primarily on cash flow—on buying assets for income,”he says. “Investors can rent out a property for 10 years and make 3-10 percent returns. But they can’t count on appreciation. We’re allseeing what happened to those fix and flippers who are hurting now.”

Gold and Other CommoditiesIt has long been said that when economic uncertainty hits, invest ingold. Like real estate, gold is a tangible asset. Unlike real estate,gold’s value has thousands of years of human history behind it.

Investors generally turn to gold as a hedge against wavering mar-kets and unpredictable politics. “Gold is like insurance,” states PeterMiralles, president of Atlanta Wealth Consultants. “Throughout the1990s and this decade, the Federal Reserve has practiced a low inter-est rate policy, and gold is basically a type of insurance against theunintended consequences of government intervention, and if a cur-rency crisis occurs with the dollar.”

Elizabeth Versace, a California-based commodities trading advisor,agrees that there is profit to be had due to the rise and fall of com-modity prices. “With stocks, unless you short sell, you can only profitfrom up moves. Short selling is out of favor in the stock market, butperfectly legal and ethical in the commodity markets. Commoditiesare the last bastion of supply and demand,” she says.

According to experts, gold may reach a record high this year, asdemand for the metal as a hedge against inflation outpaces anexpanding scrap supply and weakened usage in jewelry. An April2009 report issued by GFMS, a precious metals research and consult-ing firm, states that the price of gold could easily reattain its $1,000mark, and perhaps push past the $1,100 barrier.

The demand driving this pricing is clearly visible. In 2008, officialcoin minting hit a two-decade high due to increased demand in NorthAmerica and Europe, while bar hoarding increased by 62 percent,driven mainly by demand in East Asia and the Middle East.


Miralles contends that there is also investment potential in com-modities other than gold. He says that the weak economy hasdepressed prices for alternative commodities, resulting in someattractive valuations. “Commodities will benefit from the reboundin the economy. Companies may have defective balance sheets,but commodities do not, and are fundamentally sound,” he says.

Versace agrees, pointing to copper as today’s most promisingupward-trending commodity. “Recent news suggests that China isstockpiling copper because the price is cheap relative to the highsof last year. China uses a lot of copper in manufacturing and infra-structure, and the country is spending a lot on a stimulus packagethat will most likely create the need for copper,” she explains.“There is still copper in the ground, but getting it out is becomingmore expensive and harder to do. This means that creating newcopper supplies will likely be expensive, and there will be lessnew copper going forward.” This decrease in supply has the poten-tial to drive copper prices up in the short term.

Versace does warn, however, that researching the right com-modities to trade in is difficult, mainly because the informationavailable for free or to the general public is often either wrong orout-of-date. “Since it is possible to lose a great deal of money trad-ing commodities, you should research the best expert from whichto take advice,” she says.

TechnologyAlthough the sector has been out of favor for several years now, itstill holds strong fundamentals, says Miralles. “Technology valua-tions are at some of their lowest points in the last 15 years. Corpo-rations will always invest in new technologies to become moreefficient. It’s not a question of if, just when,” he explains.

Bill Hayes, director of asset management for Chicago Invest-ment Group, says that the continuous, evolutionary nature of thesector is one reason why investing in technology is a smart move.“The other day I was watching the movie Uncle Buck. The amaz-ing thing is that the movie was made in 1989, and there were nocell phones, no ATMs, no Internet,” he says. What’s more, he adds,the top 10 jobs in demand for 2010 didn’t even exist in 2004.

“This is because of the incredibly fast advances in technology,”Hayes explains. “Products we use today will be different in just 18months. Technology will always advance, change and present newand exciting opportunities.”

The key, he says, is finding the right technologies, companiesand opportunities to invest in. He recommends that the averageinvestor consider a tech mutual fund, since it often takes a profes-sional advisor to stay on top of developments in the industry.

EnergyOri Pagovich, managing partner of Gotham Financial Services,projects that the second half of the year will see increased con-sumption of energy-related goods and services. “There will alwaysbe cyclical, seasonal trends in energy consumption, but speakingmuch more broadly, traditional energy companies such as oil andgas will continue a general upward trend,” he says.

Pagovich also predicts that prices will remain relatively low, butwill show modest increases partly due to OPEC’s determination tocreate a more profitable floor for oil prices. “As we begin to comeout of this deep recession, I see oil prices rallying more aggres-sively and trending upwards. Other components of the energy sec-tor, alternative/green, nuclear, etc., will trade within a narrowrange for the balance of the year,” he says.

art & antiques

The world of fine art and antiques might seem a lot like fluff incomparison to other investment options. But people such as artistPablo Solomon could convince you that collecting is more than ahobby; it is, in fact, a viable and potentially profitable investmentstrategy—particularly during a recession.

“Art is a good barometer for the economy in general,” saysSolomon. “When times are booming, everyone from main street toWall Street buys art. They buy it on their vacations, they buy itfrom the local gallery, they buy it at art fairs. However, when timesare economically tough, art is often sold off. In the top financialcircles, great art is always in demand, and even in the worst oftimes, it is being bought and sold. The bargains are there.”

Price, however, isn’t the only lure of this investment. Fine artand antiques also serve as hedges against inflation, since their tan-gible nature holds universal value. “From conquering armies toescaping refugees, art remains one of the things that is consideredof timeless value,” says Solomon.

Gallery owners and directors like Waltford Gonzalez, directorof Valerio Antiques in Florida, are seeing “a great resurgence ofconsumer spending on antiques.” “Clearly,” he says, “consumersare looking for safe investments; they want to invest in somethingtangible instead of the stock markets that have failed them.”

Bill Rau, owner of New Orleans-based M.S. Rau Antiques,agrees. He says that he’s seen investors turn to art and antiques asa way to diversify their portfolios during volatile economic times.Rau refers to the annual Antiques Furniture Price Index (AFPI),which shows that antique furniture has outperformed both thestock market and home values for most years since it began track-ing figures in 1968. “Fast forward to 2007 when, according to anArt & Antiques article, the overall art market saw an impressivegain of 20 percent compared to a much more modest 5.5-percentincrease of the S&P 500,” says Rau.

To further his point, he explains that more than 1,000 new auc-tion records were set globally in 2008. “The art and antiques mar-ket is fueled by a host of investors anxious to diversify into lessvolatile arenas, and by the influx of new money hailing fromemerging economies such as China, Russia and India,” he says.

Diversify

Hayes emphasizes that while investors might want to focus on tan-gible assets now, they should not neglect the importance of diversi-fication in their portfolios. “Think of your portfolio like a seesaw. Ifyou have just two investments, one on each side, the movement ofone causes greater overall swings. The more diversified assets youhave, or the more seats on the seesaw, the greater stability you havewhen one swings. Having real estate and fine art are both goodinvestments for any portfolio; the key is keeping these investmentsin the right percentage of your overall invested assets,” he explains.

Surely though, there are signs of a recovering economy. “Everyweek we are getting a mixed bag of economic data,” saysPagovich. “While unemployment is still high and growing, manyleading economic indicators are showing positive signs like inter-est rate spreads, manufacturers’ new orders for consumer goodsand materials, and building permits.

“The seeds for greater economic activity are being sown now,”he says.


ADVERTISER INDEX

PAGE ADVERTISER ONLINE

Visit these websites for more information on the services and products provided by advertisers featured in this issue of INSIGHT.

7 1st Global, Inc. 1stglobal.com

27 Accounting Practice Sales accountingpracticesales.com

10 Audimation Services Inc. audimation.com

Back Cover CCH cch.com

3 Garelli Wong garelliwong.com

25 Herbert Landy landy.com

1 Institute of Management Accountants imanet.org

17 Marsh Affinity Group Services cpainsure.com

19 Marsh Affinity Group Services cpainsure.com

18 Proffessional Advisors Alliance professionaladvisorsalliance.com

Inside Front Cover Robert Half International rhi.com

29 Sure Payroll surepayroll.com

25 Tax Marketing 101 taxmarketing101.com

MERGER/SALESBUSINESS SERVICES

Succession Planning For Your Accounting Practice

Now is the time to plan for your future

SHORT & LONG TERM EXIT STRATEGIES

Call for info on our FREE to SELLER program

References from 950+ successful closings!

Always con�dential – Contact: Joel Sinkin or Terrence Putney, CPA

[email protected]

Free reports & more at: www.TransitionAdvisors.com

Look at our D NAWe are KUTCHINS, ROBBINS& DIAMOND, LTD., a growingSchaumburg Illinois full serviceCPA firm. Come meet with us tohear first-hand about how we areDifferent, New and Attractive–our DNA.DifferentHands on responsibility / Consistentfirm growth / No “killer hours”

NewEntrepreneurial spirit /Highly computerized/internet basedsoftware (state-of-the-art equipment) /Charitable involvement at both firmand individual levels

AttractiveFriendly work environment with goodworkspace / Fully stocked kitchenyear around / Great benefits andcompensation package

Contact:Al Kutchins, CPA

847-240-1040 [email protected]

We have openings in our auditand tax departments for theright professionals with twoor more years of experience.

��

��

��

��

��

��

BUY OR SELL AN

ACCOUNTING

PRACTICEILLINOIS PRACTICES FOR

SALE

Palatine gross $476K;Southern IL(Jackson & Perry

Counties) gross $130K;Springfield Area gross$131K; SW Suburbs ofChicago gross $618K.See listing details and

register for free updates atwww.accountingpractice

sales.com.

THINKING OF SELLINGYOUR PRACTICE?

Accounting Practice Sales isthe leading marketer of

accounting and tax practicesin North America. We havea large pool of buyers, both

individuals and firms,looking for practices now.

We also have the experienceand know-how to help you

find the right fit for yourfirm, negotiate the best deal

possible and get the dealdone. To learn about ourrisk-free and confidential

services, call Trent Holmeswith The Holmes Group at

1-800-397-0249 or emailtrent@accountingpractice

sales.com.

Use reprints from INSIGHT Magazine to promote or add toyour seminars, meetings or tradeshows.

Reprints make a great marketing tool and can be used ashandouts or to enhance your media kits.

We will work with you to create a customized piece that willsuit your needs.

Call 312.993.0407, ext. 227 for Quote & Information.

ReprintsVALUATION OF YOUR CLIENT’S BUSINESS OR

PRACTICE

By: Crandall & Brackett, Ltd. (630) 653.7922email: [email protected]

Web: www.crandall-brackett.com

Our only service is performed on your behalf in a mutualengagement setting. From basic research to a full valuation,we tailor our services to your needs. We author, teach andparticipate on policy setting committees and boards withinthe valuation profession.

MERGER/SALES

Give back to the profession that’s been good to you

Your support means a great deal to me and will help me achieve my goal of becoming a CPA.

THE CPA ENDOWMENT FUND OF ILLINOISProvides Scholarships for Accounting Students | Funds Career Awareness Programs

Promotes Diversity in the Profession | Develops New Leaders

The CPA Endowment Fund of Illinois, working in cooperationwith the Illinois CPA Society, raises philanthropic support tofund programs that nurture and sustain the CPA profession.

Paving the Way for Tomorrow’s CPAs

For more information or to make a tax-deductible gift:Julie Lenner, Director of Development, 312.993.0407, ext. 290or go to www.icpas.org.


Standing Ovation

Education: It’s the key to a continuing pipeline ofaccomplished young accounting professionals.And it’s people like Illinois CPA Society member

Ira Solomon, CPA, PhD, who help to ensure that the pro-fessional pipeline is filled.

In recognition of his efforts, Solomon, head of theDepartment of Accountancy and R.C. Evans EndowedChair in Business at the University of Illinois at Urbana-Champaign, has been named the recipient of the Ameri-can Institute of Certified Public Accountants’ (AICPA)2009 Distinguished Achievement in Accounting Educa-tion award. This annual award, which was presented atthe spring meeting of the Institute’s Governing Council, ispresented to a full-time college accounting educator inacknowledgement of excellence in teaching, as well asnational prominence in the accounting profession.Solomon represents the third recipient from Illinois in theaward’s 24-year history.

Specifically, Solomon has made significant contributionsto the development of the accountancy program at the Uni-

versity of Illinois and elsewhere through his directorship of Project Discovery, an innovative undergraduate account-ancy curriculum that requires students to apply accountingprinciples to real-world problems through discovery learn-ing, role-playing, case studies and other activities. The 16cases Solomon developed with KPMG and other colleagueshave been downloaded more than 300,000 times, andwidely used by professors of accountancy nationwide.

An Illinois member of the AICPA Council and a long-time member of the Illinois CPA Society (ICPAS),Solomon has served as director and a vice chair of theICPAS Board of Directors, chaired the ICPAS EducationSummit Task Force and served on numerous ICPAS com-mittees, in addition to being called upon as a mediaexpert for the Society. He is also a prolific author, withmore than 75 published articles and nearly 100 paperspresented at conferences and seminars around theworld. He has received numerous awards, including aSpecial Award of Merit from the Society at the New CPABanquet in May 2009.

Take a BowIra Solomon, CPA, PhD receives the AICPA’s 2009 Distinguished Achievement in Accounting Education award.

By Judi Kulm

Lifetime Achievement AwardsCameron T. Clark, CPARetired Partner, KPMG LLP

Duane D. Suits, CPARetired Partner, Sikich LLP

Public Service Award Kenneth J. Hull, CPARetired, Follett Corporation

Outstanding Leadership in AdvancingDiversity Award Scott D. Steffens, CPAPartner, Deloitte through June 27,Effective August 1, Partner, Grant Thornton

Outstanding Educator AwardsDiana McCabe, CPAAssistant Professor, Black Hawk College

Sandra S. Lang, PhD, CPA, CFEChair, School of Business, McKendree University

Deborah L. Lindberg, DBA, MBA, CPA Professor, Department of Accounting, Illinois State University

Distinguished Service Awards

Robert E. Cameron, CPACameron, Smith & Company, PCPeer Review Report Acceptance Committee

Andrew Dumich, CPAYoung Professionals Group

Neil F. Finn, CPADeloitte & Touche LLPAudit & Assurance Services Committee

James L. Fuehrmeyer, CPAUniversity of Notre DameAccounting Principles Committee

John A. Hepp, CPAGrant Thornton, LLPAccounting Principles Committee

Jon R. Hoffmeister, CPAClifton Gunderson LLPAudit & Assurance Services Committee

Paul V. Inserra, CPAMcClure, Inserra & Co., Chtd.Audit & Assurance Services Committee

Alan R. King, CPAMay, Cocagne & King PCPeer Review Report Acceptance Committee

Jason Parish, CPABlackman Kallick LLPYoung Professionals Group

James G. Quaid, CPAOstrow Reisin Berk & Abrams Ltd.Not-For-Profit Organizations Committee

Leonard C. Soffer, CPAUniversity of ChicagoAccounting Principles Committee

Reva B. Steinberg, CPABDO Seidman, LLPAccounting Principles Committee

Jeffrey P. Watson, CPABlackman Kallick LLP,Accounting Principles Committee

Kevin V. Wydra, CPACrowe Horwath LLP,Audit & Assurance Services Committee

��

The Illinois CPA Society is proudto recognize the following awardwinners and congratulate them ontheir accomplishments.

With IntelliConnect, the most powerful research platform available, you’ll never have to worry if you’re looking in the right place for tax and accounting information. You can search your entire library of CCH content in a matter of seconds using simple keywords. You don’t have to choose search parameters and you don’t have to know exact titles. For you, it’s peace of mind. For tax and accounting research, it’s a whole new world.

Take a walk through the world of IntelliConnect. To schedule a live demo, visit us at CCHGroup.com/Simplifi ed-Research or call 1-877-CCH-8395.

IntelliConnect™

Learn to use it in minutes | Search everything, automatically | Fine-tune your results

INSIGHT Magazine - July 2009

Documents

Transcript of INSIGHT Magazine - July 2009