Did you happen to catch Monster.com's "Bogeyman" commercial during the Super Bowl pregame show? Seems as though everyone wants to become a CPA.

We'll just have to assume that Mr. Bogeyman has fufilled his educational and experience requirements and has passed the exam. Still, kudos to him for making such a fine career move.

If he thinks tax season is any easier than his previous occupation, though, he's got another thing coming.

In case there are any questions, crime definitely doesn't pay.

The IRS makes that crystal clear in Publication 17 (2009), "Your Federal Income Tax." Section 12 of the publication ("Other Income") includes the following, as featured in the brilliant FailBlog:

See more Epic Fails.

Possession, apparently, is nine-tenths of the tax law.

It's been a while since I last spoke with Anirban Basu, and that's a shame because (a) he's one sharp economist who delivers the goods in the financial-analysis department, and (b) he's just so much darned fun to talk to.

So I looked him up the other day. He didn't disappoint on either count.

Some of his points weren't entirely unexpected.

Yes, he said, our economy is recovering, though some troubling issues (unemployment and commercial real estate, for instance) remain.

And it's a tenuous recovery at best. Need proof? Look no further than the stock market.

"The financial markets have been reasonably good predictors of future Main Street economic performance," said Basu, CEO of Sage Policy Group, an economic and policy consulting group based in Baltimore. "The Dow Jones Industrial average peaked on Oct. 9, 2007 at 14,164.53 and started falling from that point, and by December 2007 we were in a recession. The Dow Jones bottomed out on March 9 of last year, ending the day below 6,500, and began a rally from that point on, and by August we were out of recession."

And today? We're seeing more volatility in the stock market -- a sign in Basu's mind that the economic recovery might stall later this year.

Basu's more interesting points, though, come when you ask him about what's been done right -- and wrong -- in addressing our economic woes.

• The good: Monetary policy: "I think Ben Bernanke has done a spectacular job," Basu said. "Getting interest rates low, trying to build momentum in the housing sector, understanding that the risk in the near term is not inflation but a lack of economic growth. ... He was built to be Federal Reserve chairman during this period in economic history."
  
  
• The bad: The stimulus: "The economic stimulus package passed in February (2009) I view as a complete and utter disaster," Basu said. "When you're going to spend not quite $800 billion, that's the time to be thoughtful. Instead, the package was crafted thoughtlessly, and that's one of the reasons why the unemployment rate is still 10 percent. Moreover, it's one of the reasons to believe that we might need another stimulus package if we want to bring unemployment below 10 percent sometime this year. That's really good evidence, isn't it, that the stimulus package hasn't worked as hoped? Even before a significant portion of the money has been spent, we're already talking about another stimulus package."
  
  
• The state: "(Maryland) has pledged to spend a significant amount of money on education, but no countervailing sources of revenue were identified," he said. "We got away with it because the economy was artificially strong, which hid our structural deficit. Now that the economy is bad, it's starting to hurt. And in another year we'll be looking into the fiscal abyss. My guess is that after this fiscal year state government will shrink, and that will create downward pressure on the overall state economy."
  
  
• The opportunity: Feed the pig: "One of the reasons that we're in this mess as a nation is that we made such terrible decisions, including at the household level," Basu said. "To the extent that (CPAs) can provide guidance related to what people really can afford, obviously that boosts productivity and economic sustainability."

Basu offers these and other thoughts in a recent CPA Spotlight podcast. Listen to it in its entirety.

• Subscribe to our podcast here, or search for "CPA Spotlight" in iTunes.

Learn more at the Business and Industry Conference
Basu is also slated to give one of his popular economic updates during the MACPA's 2010 Business and Industry Conference, slated for May 14 at the Turf Valley Resort and Conference Center. Get details and register here.

Are we turning the corner?

We have been watching for signs of recovery and they seem to be showing up recently. The latest FEI CFO survey shows that CFOs are cautiously optimistic. Here is a recap of that report from last week:

"CFOs are looking up, but remain committed to utilizing some of the important lessons learned during the downturn and keeping companies streamlined. Their views on staffing are mixed."

So what does this mean? What should you be thinking about regarding staffing?

I like the approach suggested by Josh Bersin of Bersin Associates in his post, Five Talent Management Strategies for a Business Downturn.

1. Plan ahead. Don’t swim naked. Cut strategically.
2. Continue to invest in talent. Reward high perfomers. Keep the culture intact.
3. Look for great hires. Don't freeze all headcount.
4. Communicate clearly and honestly.
5. Turn outward (meaning outside the business with customers).

In its most recent Talent Watch report, Bersin sums it up very well:

"The global economic slowdown is over and companies are in a transition period. Now is the time to rethink strategies for leadership development, skills training, performance management and employee engagement. People who have survived the downturn are starting to feel a sigh of relief, so we must take steps to reengage them in possible business growth."

Is it time to position our organizations for growth by getting our people skills in leadership, innovation and customer service to be ready to seize opportunities as they present themselves?

You're undoubtedly neck-deep in early tax season work by now, but you'll want to make some time to watch this.

It's a video from the folks at ACPEN, a professional training consortium of nearly 40 state CPA societies, including the MACPA. The 17-minute video provides an overview of recent tax developments and several practice tips that CPAs might find useful.

And though relatively few major changes are on the books this year and it's 2011 that looks like the real "wildcard," in the words of Roger Lusby III, there are still plenty of issues to consider. Among the items up for discussion are:

• debt forgiveness and insolvency,
• foreign investments and unreported foreign income,
• electronic filing and obtaining transcripts from the IRS,
• adjustments to withholding tables,
• the first-time homebuyer tax credit,
• and, of all things in this tough economy, capital gains.

Watch the video in its entirety here, then check out these other tax season resources:

• IRS 1040 Central
• IRS resources for tax pros
• Maryland resources for tax pros
• Tax-advice brochures
• Customize and print the brochures above with FedEx Office
• Join our tax listserve
• For your clients / staff: Money Management columns
• MACPA tax resource center
• Member discounts on tax-related books and solutions
• Tax E-ssentials, a monthly tax e-newsletter for MACPA members

Answer: Switch.

Switch your mindset from focusing on problems to finding bright spots of success and building on them.

Actually, Switch: How to Change When Change is Hard is the name of the new book by Chip and Dan Heath, best-selling authors of Made to Stick(one of my favorites).

But wait, there's more:

Imagine my surprise when I picked up the latest issue of Fast Company magazine and found an article by the same name -- "Switch: How to Change When Change is Hard," and it featured the CPA profession as an example of the right kind of change!

CPAs and Fast Company?

The Financial Literacy campaign and the famous Benjamin Bankes (Feed the Pig) are shown as an example of making big changes through a series of small choices (successes). See the ad mentioned in the article below:

This campaign was the brainchild of the AICPA and the Ad Council and has brought the financial literacy message to millions and millions of Americans. In addition, as if to model the entire "Switch" philosophy, this campaign and the financial literacy movement has been adopted and amplified by almost all of the state CPA societies involving thousands of CPA volunteers. As the authors say, "find a bright spot and clone it."

Our post CPAs drive the financial literacy message home gives a great example of a major bright spot that started with the passion of a past MACPA chair Pat Reese and how she has made a difference. See a short video of Pat in action.

In addition to Pat's work, we have had volunteers speaking to students at high schools and colleges and working with the armed forces to provide free counseling on financial literacy before they deployed. We found some bright spots and cloned them.

I had the opportunity to see Dan Heath live at my favorite annual conference (DigitalNow: Association Leadership in the Digital Age) a couple of years back, loved his book Made to Stick, and just pre-ordered Switch. I will give it a full review after reading it. I think I am gonna love it.

So let's start today off by switching our brains to a positive mindset, looking for those bright spots and building on them one step at a time. Who knows? Maybe we can change the world.

Related posts on CPA Success:

• Financial literacy seeks a younger audience
• The pig's message: Don't live high on the hog

More financial literacy resources:

• 360 Degrees of Financial Literacy
• MACPA Financial Literacy Resource Center
• Financial Literacy Tips from CPAs (via YouTube)

Is your "green" glass half empty or half full?

Let's find out.

It its quarterly CFO Outlook Survey, Financial Executives International found that 48 percent of companies have taken steps to reduce energy consumption, 30 percent are reducing waste and 21 percent are implementing incentives to encourage customers to be "greener."

So what do you see -- the fact that many companies are implementing these environmentally friendly strategies, or the fact that most aren't?

I don't know if this will sway your opinion at all, but it's worth noting that 28 percent of CFOs surveyed said their companies aren't doing anything to become more sustainable.

Whether they are or not, all companies might want to take a stroll over to the SEC Web site. The Commission has released guidance on rules "that may require a company to disclose the impact that business or legal developments related to climate change may have on its business." According to the SEC, "the relevant rules cover a company's risk factors, business description, legal proceedings, and management discussion and analysis."

CFO.com's Sarah Johnson offers this take:

The problem may not be so much that companies are skirting the rules, but that they haven't received a sufficient nudge to make proper disclosure. By publishing new guidance, "the SEC is effectively saying, 'We really think you should think long and hard about whether or not greenhouse emissions and climate change are material to your shareholders,'" says Karl Strait, a partner at McGuireWoods.

And companies that haven't made the green move yet? Well, they might want to take a serious look at "Sustainability: A better brand of business?" This Statement article, written by Sustainability Partners International Managing Partner Gary Langenwalter, cites mounds of research to make this claim:

"Over the past decade, a 'learning lab' of companies devoted to the concept of sustainability -- called the Living Asset Management Program, or LAMP -- has more than doubled in value while the overall value of the S&P 500 has fallen" and has "twice the profits of (the) industry average" by "doing good for (the) community and the planet."

Talk about green.

Langenwalter talks more about the benefits of sustainability in this MACPA podcast. Listen to it, then tell us: Has your organization taken any steps to be greener? If so, what have you gotten out of it?

We've read the news reports and watched the network broadcasts and listened to the politicians stress time and time again the need to put people to work.

But you've never seen anything that illustrates the unemployment crisis quite like this.

Our IT manager, Doug Shaner, sent this to me. It's called "The Geography of a Recession," and it uses data from the U.S. Bureau of Labor Statistics to graphically illustrate -- on a county-by-county basis -- the nation's climbing unemployment rate.

Hit "Play" and prepare to be amazed ... and, quite possibly, depressed.

Well, if the mere fact that it's Friday isn't good enough for you, try this: Today is Earned Income Tax Credit Awareness Day.

Seriously.

The IRS calls the annual observance "a national grassroots effort spotlighting this potentially life-changing tax credit," adding that "the need to reach out and ensure every qualified worker claims and receives their EITC is greater than ever."

So let's get the party started! Find out more about EITC Awareness Day here, then check out these additional EITC resources from the IRS.

Oh, and I'm buying the first round.

We do need a single set of global, high-quality financial reporting standards.

The question is, how can we get them and implement them in the largest capital market in the world -- the United States?

There are six major barriers to IFRS progress in the U.S:

1. Other more urgent priorities: We have all heard about the tyranny of the urgent (over the important). FEI's recent survey of issues facing U.S. corporate finance chiefs put IFRS fifth behind economic recovery, health care reform, employee benefits and regulatory reform.
2. Costs of convergence in a tough economy: Many early adopters have reported costs of converting to IFRS similar to SOX 404 costs, and companies simply cannot afford extra costs in this fragile economy.
3. Mixed messages from regulators: The on-again, off-again, on-again messages from regulators add major uncertainty to companies trying to plan when they should start their focus and project planning. The SEC promised a "road map" by winter, and we are still waiting for direction.
4. Big, unresolved financial reporting issues: LIFO, tax, and the added litigation risk of moving to principles-based standards for both preparers and auditors have not been addressed.
5. Convergence conflict: Significant differences exist between GAAP and IFRS and have not been decided or agreed to yet. The goal of better information for investors and less complexity is the right answer. The fear is, are we in a race to the lowest common denominator or do we have to wait until the IASB-FASB convergence project is complete before a decision to convert is made?
6. Private company standards continue to raise questions in the U.S. The Private Company Financial Reporting Committee and the new Financial Accounting Foundation Blue Ribbon Committee are moving in the right direction. IFRS for SMEs is also gaining adoption and has some great concepts that many small enterprises support. The question is, can we get these to come together quickly before the demand for a set of standards for private companies finds its own solution?

What do you think? Is it time to get moving on IFRS or not?

Resources:

• Latest guidance on IFRS for SMEs (from the MACPA, with related upcoming training programs)
• Podcast with Judy O'Dell, chair of the FASB's Private Company Financial Reporting Committee
• AICPA IFRS resources
• IASB Web site
• CPA Success posts about IFRS

I know what you're thinking:

I love hip-hop. I love economics. If only there were a way to combine the two that would easily explain the theories of John Maynard Keynes and Friedrich von Hayek.

Brace yourself: Your dream has come true.

The folks at Planet Money have dug up "Fear The Boom and Bust," a video produced by George Mason University economist Russ Roberts and Spike TV executive producer John Papola. It's an entertaining lesson in modern economics and, by all accounts, a pretty good rap.

Check it out here -- and as "Hayek" says in the song, "Prepare to get schooled in my Austrian perspective."

There is an old saying that there is power in numbers.

Associations are made for organizing and magnifying that power into what is now called the Power of A.

This Sunday, I got to experience that power as the Maryland Association of CPAs' Board of Directors voted unanimously to support Bill Ezzell's request for help with the AICPA Foundation's Accounting Doctoral Scholars (ADS) program with a donation of $25,000. (That's Bill pictured at right holding the check with MACPA Chair Bill Riley on the left holding the check, along with the rest of the MACPA's board.)

So, what is the Power of A?

It's an effort to highlight examples of associations working together and solving big problems. It was started by the American Society of Association Executives (ASAE). The impact of associations goes back to colonial times and was observed by Alexis deTocqueville in his classic book, Democracy in America (Penguin Classics). He articulated the value of associations well as he wrote:

"In America I encountered all sorts of associations of which, I confess, I had no idea, and I often admired the infinite art with which the inhabitants of the United States managed to  fix a common goal to the efforts of many men and to get them to advance to it freely. ... Americans of all ages, all conditions, all minds constantly unite (to form associations). ... From then on, they are no longer isolated men, but a  power one sees from afar, whose actions serve as an example; a power that speaks, and  to which one listens."

In this case, the AICPA started an effort to unite the CPA profession to quickly address one of its most pressing problems, a severe shortage of accounting professors. The shortage of accounting Ph.ds has become a major bottleneck between the growing supply of students interested in a career in accounting and the demand for more accounting students (and ultimately, CPAs) by employers.

The problem has become so acute that recent studies show that the supply of accounting professors now stands at less than 50 percent of the demand. It is so bad that several colleges and universities are turning away qualified accounting students because they simply do not have enough professors.

This is where associations come in.

The AICPA Foundation started the Accounting Doctoral Scholars Program (ADS) to encourage practicing audit and tax professionals to consider careers as accounting professors. In just two years, they have recruited nearly 60 candidates who are now in their first and second years of accounting Ph.D. programs. The MACPA's contribution of $25,000 helped them accumulate almost $17 million and more than 97 percent of their goal in just two years! We joined 44 other state CPA societies,the AICPA, the Big Four firms, and almost 80 of the top 100 CPA firms in the Major Frms Group.

Now that's the Power of A!

Have you hugged your professional association today?

More importantly, have you renewed your investment in your hard-earned CPA by renewing and becoming active in your professional associations (both the AICPA and your state CPA society)?

Here are a few more resources on the Accounting Doctoral Scholars program:

• Web site
• A Professions' response to a Looming Shortage (from the Journal of Accountancy)
• Pursuing a Ph.D. in Accounting (from the JofA)

Anyone who thinks humans aren't self-centered hasn't traveled much lately.

Why is my flight late? Where are my bags? You're not going to sit next to me, are you? This line is holding me up. Your incompetence is making my life hell.

It's all about us, isn't it?

The next time you're at the airport, take a good look around. Notice anything? How about the fact that nobody notices you? Everyone is completely wrapped up in their own lives. It's not that they don't care about you. It's just that you don't register with them. They're not selfish; they're just self-absorbed.

And they're not alone. We all do it -- and not just at the airport, either. That self-absorption invades other, more important corners of our lives, too.

Take work, for instance. Too often, we look at business transactions and ask simply, "What's in it for me?" That's a shame, because there's another option that, in the long run, could be even more profitable:

What if we looked at each and every transaction as an opportunity to help someone else? To solve their problems, address their needs, boost their bottom lines? What do you think might happen?

You'll undoubtedly make them very happy, for starters. Beyond that, you'll earn their praise, their trust and, yes, their business.

And here's the funny thing about happy clients: They like to talk. They'll preach the Gospel Of You, and your following will grow.

All because you noticed them.

I don't know if you caught Conan O'Brien's last episode of "The Tonight Show," but amid all the gags, well wishes and remembrances, O'Brien tossed out this gem: "If you work really hard and you're kind, amazing things will happen." I'm willing to bet he's right.

You don't need me to tell you this, of course. It's nothing new, it's not rocket science, and most of us are doing it as a matter of course. We all like to think we put our customers first, and a good many of us do.

It's just that so many businesses have looked inward for solutions to their economic woes lately. If we lay off these folks and cut these expenditures or services, maybe we'll be OK until things turn around. And certainly, that type of frugality has its place.

Isn't it possible, though, that the answer lies not in cutting back on what we do but in helping our clients expand on what they do?

Beats me. These are just some random thoughts that popped into my head at the airport recently as I sat around, not being noticed.

If you're interested, check out these related resources:

• Retain clients and help them recover (from the Journal of Accountancy)
• Three keys to client retention: Ask, listen, serve (from CPA Success)
• Find a Need and Fill It: Your Key to Business Development (a Business Learning Institute program)
• Turning Trust into Value: Business Development Boot Camp (a BLI program)
• How to Attract and Retain Loyal Clients through Trusting Relationships (a BLI program)
• Above and Beyond Customer Service: Improving Service Improves Your Bottom Line (a BLI program)

Over the past few years, you've helped us turn CPA Success into a rockin' blog for CPAs everywhere ... and thanks for that, by the way. We're more thankful than you'll ever know.

Now, we're hoping you help us do the same thing for our Facebook page ... and we want to make it worth your while with some free CPE.

Simply become a fan of the MACPA's Facebook page. Each month, we'll draw the name of one fan at random. That lucky fan will receive free admission to an upcoming MACPA conference of his or her choice. Those conferences include the following:

• April 30: Government / Not-for-Profit Conference
• May 14: Business and Industry Conference
• June 28-29: MACPA Summit (formerly the MD Biz Expo)
• Sept. 21: Government Contractors Conference
• Sept. 27-28: Chesapeake Tax Conference
• Oct. 29: Advanced Personal Financial Planning Conference
• Nov. 1-5: Advanced Tax Institute
• Practitioners Conference (date TBA)
• Technology Conference (date TBA)

The winners will be announced each month on the MACPA's Facebook page, where they'll be given instructions on how to claim their prize.

Along the way, you'll be helping us build an increasingly active and vital community of CPAs looking to network, share resources and explore the power and potential of social networks.

Let's keep the social-media momentum rolling. And while you're at it, check out these related resources:

• Follow the MACPA on Twitter | LinkedIn | YouTube
• Check out our PowerPoint presentations here and here.
• 7 reasons to not use social media
• Is it time to pay attention to social media?

That is the purpose of a very brief survey being sponsored by Pearson - Prentice-Hall publishers and Dr. Steve Hornik of University of Central Florida.

Please complete this very brief survey (less than five minutes) before Jan. 28. We will post the results here on CPA Success when they are reported.

Here are some key skills to get you thinking: