Practice Management

The world is flat, according to the best-selling book by Thomas Friedman. He writes about technological changes that are linking people and breaking open business opportunities at warp speed. That's certainly the case for forward-looking CPAs, especially those in mid-market firms. Just a few years ago, it was unthinkable that a midsized CPA firm could compete and win multi-location opportunities from prospects with operations outside of the U.S.However, more midsized businesses now have operations around the globe. Additionally, what's changed is a result of client dissatisfaction with treatment or results from larger firms. In other instances, regulatory-driven arm's-length relationships between auditors and clients have generated new interest in secondary providers.

SUIT FILED AGAINST PLANS TO REIMBURSE PHONE TAX: A class-action lawsuit has been filed challenging the Internal Revenue Service's plan to reimburse taxpayers for their past three years' worth of long-distance phone taxes.The lawsuit claims that small businesses and low-income taxpayers will be shortchanged, or completely excluded, from the refunds.

So many tax provisions these days are effective so far out into the future, practitioners can't quite figure out how to address them. File them away on a long-term calendar? Start preparing for them immediately? Ignore them?In dealing with the recently passed Pension Protection Act of 2006, where the majority of provisions are not effective until either 2008 or 2011, the answer varies considerably. This article offers some first-off-the-bat timelines to consider.

Net@Work, one of the largest Sage-only software resellers, announced that it has purchased Eagle Consulting Group, a top Sage Software MAS 90 and MAS 500 reseller in the tri-state area.Eagle Consulting Group's founder and chief executive, Debra Ellis, will serve as manager of consulting services.

In many CPA firms, business development skills and techniques aren't even discussed until a manager is ready to move to partnership. And as they say, it's hard teaching an old dog new tricks.The ability to bring in new business for the firm is typically a condition of partnership, and yet firms aren't equipping their managers and senior managers with the skills they need to do so. Your staff is the future of your firm; give them the tools that they need to help build your client base and prepare them to become leaders.

The Internal Revenue Service has announced five director-level appointments in its Large and Mid-Size Business Division, which serves corporations, Subchapter S corporations and partnerships with assets greater than $10 million.New directors were named for four of the LMSB's five industries, as well as for the LMSB's pre-filing and technical guidance unit. Among the changes:

Tegra Financial Partners, a subsidiary of Atlanta's Habif, Arogeti & Wynne LLP, announced that it has acquired pension-consulting firm Olson & Swenson Inc.Financial terms of the deal were not disclosed.

Boston-area firm Braver PC announced the acquisition of the practice of CPA Scott A. Kanter, formerly of Brown & Brown LLP. Financial terms were not disclosed.Cynthia Hickey, Kanter's associate for the last 15 years, will lead the transition of the accounting practice from Brown & Brown to Braver, and become Braver's first female shareholder.

Sage Software announced a deal to acquire the mobile division of Corum Corp., a Concord, Ontario-based business partner that specializes in customer relationship management.

The selection by an entity of its company structure, its fiscal year and its method of accounting are the three main mechanisms that a company can employ in performing substantial tax planning, according to Nicholas Crocetti, CPA, a partner in CBiz Accounting Tax & Advisory."The concept of an accounting method is much broader than what many people believe," he said. "Most companies employ a number of accounting methods. First, they have an overall method of accounting - for example, the cash method, accrual or some form of hybrid method. Additionally, companies need accounting methods for every timing item they encounter in their business, such as how to account for inventory, bad debts, vacation pay and self-insured medical expenses."