Welcome to the third edition of the Business and Industry e-zine, The Balance Sheet.  The articles are all original material, authored by ASCPA members and Friends of the Society.  Check out the Business & Industry Resource Center Page for photos and bios of contributing authors. 

The Balance Sheet will be archived on the Business and Industry resource page on the ASCPA website, in case you want to refer back to an article or pass it along to a colleague.  To visit the Business & Industry Resource Page, click here.

Business and Industry Conference Hits a Home Run

The Montgomery Biscuits baseball game was fun, along with staying in a hotel in Montgomery’s re-vitalized downtown area.  But the big draw was at an early hour on day two – the tour of the plant.  It was enough of a motivator that making the 20 minute drive from downtown to be at Hyundai at 7:30 was just not an issue.  The handwriting’s on the wall, now every B&I conference will have to meet the benchmark that this one set! 

Other solid hits on the schedule were the CFO Roundtable, and especially the banker’s panel, where a lively and frank discussion kept the questions flying. 

Here's what some of the attendees said when asked what they liked most about the conference:

• "Made new connections with individuals at my level. "
• "The plant tour. The topics were good, but this was a unique opportunity."
• "I enjoyed the busines and non-business (tour and biscuits game) mix of the conference."
• "Great experience factor from attendee comments. I also enjoyed the leadership discussion. This is not typical of accounting conferences and I thought it was a nice add. Overall this was a great conference."
• "Location. I believe conducting the seminar at a manufacturing location was very beneficial for the group. I also enjoyed the various topics and mix of general and break-out sessions."

Click here to see photos from the Business & Industry conference

B&I Committee Chair Ron Box was caught off guard at the Business & Industry Confernece when he was presented with the Outstanding CPA in Business and Industry award.  He has been instrumental not only in helping to create the IT Task Force and Forum, but also in building the B&I library on the ASCPA website and in editing The Balance Sheet, the B&I quarterly e-zine. Congratulations, Ron!

Banks Are Lending Again, But Not To Everyone

Participants at the Alabama Society of CPAs Industry Conference (held May 13 and 14, 2010 at the Hyundai plant in Montgomery) saw a great discussion of current banking issues as executives from four Alabama banks answered questions from the audience and the moderator.  Executives from Superior Bank, ServisFirst Bank, Whitney Bank, and Bank Trust responded to a number of questions for over an hour.

The panel was in general agreement on the question regarding an overall perception that banks are not lending.  Most of the panelists felt that loan activity is increasing.  However, there are still areas of major concern involving commercial property not occupied by the owner.  Commercial and residential construction lending is still very difficult to finance.  Other segments of the economy are improving, and the panelists voiced an optimistic tone in saying that their banks are “open for business.”

Several other important questions were posed to the panel, including:

Having access to several bankers answering direct questions of this nature can be a great business opportunity.  Look for an announcement for the 2011 Industry Conference and sign up early.  Make sure you take advantage of great sessions like this one next year.

How to Effectively Select Property and Casualty Insurance

by Richard Kohn of Cobbs, Allen and Hall

As we are all aware, we are living and working in an unprecedented economic environment. And while our top lines may have decreased, the significance of protecting assets at a reasonable cost remains extremely relevant. Throughout the economic downturn, the insurance marketplace has remained relatively “soft”.  In essence, insurance companies have surplus capital they need to deploy which is driving down pricing. Many companies mistake decreasing premiums for a successful risk management program. In this article we are going to examine how the insurance procurement process is only one part of a successful risk management strategy.

Because of the current economic downturn, many companies are trying to reduce costs. Focusing on an all encompassing risk management program can drastically assist in cost cutting initiatives. First, you must have confidence in your broker to ensure that coverage exists for all of your exposures. This includes reviewing contracts you may have with vendors, customers, subcontractors, and lease agreements. Many times these documents reveal certain exposures in which you are agreeing to insure and indemnify other companies. A good broker can compare the verbiage in these contracts to your policy forms to assess gaps or deficiencies.

Read Full Article

New and Clarified Fair Value Disclosures

by Dr. Steve Grice, University of Alabama Birmingham

Bio Information

During 2006 the FASB released SFAS No. 157, entitled “Fair Value Measurements.”  This fair value guidance provided a definition of fair value, established a framework for measuring fair value, and expanded disclosure requirements in financial statements that incorporate fair value measurements. SFAS No. 157 was codified within Accounting Standards Codification (ASC) Topic 820, entitled “Fair Value Measurements and Disclosures.”  Recently, the FASB issued Accounting Standards Update (ASU) 2010-06, entitled “Improving Disclosures about Fair Value Measurements.” The guidance in ASU 2010-06 establishes some new fair value disclosures and also provides clarification for the some of the previously required disclosures when applying FASB ASC Topic 820. 

Read More

The Good That You Do: Offering Group Life Insurance

to Your Employees

by Monte Marshall, Life, Disability, and Long Term Care Insurance Agent,
Mass Mutual Life Insurance Company

Bio Information

With all the different types of life insurance policies offered and all the companies who offer those policies, consumers can have a hard time deciding where to go for their life insurance needs. One good place they can start is their Group Life Insurance offered as a benefit through their employer.

What are the benefits?

Click here for more.

Workplace Conflict & Confrontation—Managing,

Resolving and Surviving

by Melva Tate, President, Strategic HR Partnerships

Bio Information

General definition of workplace conflict:  A spat, disagreement or argument in the workplace resulting from an individual or a group that differ in needs, desires, values, beliefs and attitudes. 

Melva’s definition of workplace conflict:  A nightmare!

Let’s face it.  No organization is exempt from the he said, she said, they said, we said bickering between two employees or workgroups.  In some companies it is part of the daily landscape.  In others, it is simply a drifting tumbleweed pricking relationships as it slowly passes through your organization.

Regardless of how it shows up or how long it lingers, unresolved workplace conflict will damage relationships, hinder work performance and create a storehouse for future recruiting, retention and morale problems.

Read More About Detecting and Resolving Conflict

Broaden Your Outlook

by Lisa Kianoff, President & Founder, L. Kianoff and Associates

Bio Information

Ever miss the obvious when it was right in front of your face? Look no further than Microsoft Outlook. If you’re like most business people, you use it every day. Yet how much do you really know about all it can do for you?

Spring Cleaning
Sure, the cost of data storage is going down, and that may be lucky for you based on the increase in “digital junk” you’ve accumulated. Some of that junk is crazy large but Outlook has a feature that helps you quickly identify the largest of the emails you have stored so you can delete the ones you don’t need.

Managing the Masses

The thing about email is it keeps coming. And you keep responding. The result is a constantly growing collection of emails stored in your Sent Folder. Some contain information that’s important to keep; some – most – you may never care to see again. So what’s the best plan for controlling the build-up in your sent folder while ensuring you don’t lose the ones that are valuable?  

Click here to read tips on controlling your inbox

Alabama Department Of Revenue Seeks To Hold LLC Members Individually Liable For Withholding Tax Not Remitted By LLC

by Jeff Patterson, Jeff Patterson, LLC

Bio Information

If you are a member of a limited liability company (“LLC”), or are considering becoming one, be aware that the Alabama Department of Revenue considers LLC members to be individually liable for taxes that are not paid or remitted by the LLC (except for business privilege tax).  Recently, the Department entered an assessment against an LLC and its individual members for income tax that had been withheld by the LLC on its employees, but not remitted.  Nonna Rose Kingsley, LLC, and its Members v. Alabama Department of Revenue, Administrative Law Division, # W. 09-1194 (Final Order April 15, 2010).  One of the members appealed the assessment to the Department’s Administrative Law Division, arguing that he, being only a member of the LLC, should not be held personally liable for the tax.  Id. 

The LLC member, a doctor, was asked by certain individuals to finance a new restaurant in Birmingham.  The other individuals agreed to operate the restaurant, which was owned and operated through an LLC.

What does this mean for you?

Click here to read more

Can I Ask for a Raise?

by David Hazelwood, Recruiting Manager, Robert Half International

Bio Information

Negotiating salary is always tricky, but it can be especially challenging in today’s business climate. While some industries are expanding again, managers are still watching budgets with a close eye.

That said, companies are concerned about retaining top performers as the economy rebounds. In fact, 48 percent of hiring managers surveyed by Robert Half said that offering raises will be their primary method of keeping their best employees when business conditions improve. This is good news, but in order to be a contender for a raise, you still need to build a strong case.

The Do’s and Don’ts of Requesting a Pay Increase in Uncertain Times

One of the most popular sesssions at the ASCPA Business & Industry Confernce this year was the CFO Roundtable breakout. The CFO Roundtable, led by Boyd Busby, CFO of Hodges Warehouse & Logistics, consisted of approximately 25 participants from varying industry backgrounds and corporate structures. The group represented companies ranging from local small businesses, sole practitioners, partners in public accounting and large publically traded companies. This wide range of participants combined for an interesting and insightful roundtable. A summary of the discussion is listed below: 

Audit Fee Trends
This discussion focused on the trend of decreasing audit fees and their negotiability. Shaw Pritchett, Partner at Jackson Thornton in Montgomery, helped the group being to only representative currently in public accounting. The general consensus from the group was that basic audit fees are on a downward trend but no one expects this trend to continue. 

IFRS
The IFRS conversion date seems to be moving constantly and the group has not been focusing on this item as they have been more focused on the current economic conditions. There were discussions on moving back to the conceptual framework of financial reporting and how this should help in outside investors understanding financial reports. Overall the group seemed positive on this move.

Healthcare Bill
The Healthcare Bill is very new and everyone was still digesting the information. Paul T. Graham, of Trinity Medical Center, one of the participants, spoke at length on the changes that businesses should expect in insurance costs, taxation and the general quality of healthcare.

The diversity of topics is what the participants like the most about the Roundtable. In addition to the topics listed above, the group cover a lot of ground as they discussed budgeting and forecasting; banking relationships and restructuring troubled loans; and reporting software in the 90 minute session. The conversation didn't stop when the session was over; members have found that the informal discussion environment with other CFOs provided network opportunities with others on their level with whom to discuss other "big" ideas.

To read the full recap, click here

We will expand the CFO Roundtable for the 2011 Business & Industry Conference. Watch for your chance to register for this popular session.

 Profile of Phyllis Hoffman DePiano, Hoffman Media, LLC

A leading figure in the publishing industry, Phyllis Hoffman DePiano is President and Chief Executive Officer of Hoffman Media, LLC.  A native of Alabama and a graduate of the University of Alabama in Birmingham, she began her career as a Certified Public Accountant with a nationally known firm before founding a special-interest publication company in 1983 that is now known as Hoffman Media, LLC.

DePiano is recognized industry-wide as a savvy businesswoman and talented entrepreneur.  Sher serves as the creative engine of the company producing magazine that define and celebrate women’s lifestyles including Sandra Lee Semi-Homemade, Cooking with Paula Deen, and Sew Beautiful, just to name a few.  Hoffman has also published and authored several Southern-inspired entertaining and decorating books. 

Click here to read the full interview, posted to the ASCPA blog

Have an IT question for which you desperately need advice? Curious about the new trends in technology? Looking for a few good tips and tricks in Excel? Want a place to chat with other members? Then The Gateway is the place for you.  For technology questions, we will have members of the IT Taskforce, and other knowledgeable experts, available to provide answers and advice. As part of a continuing series, we will also post blogs and podcasts on topics germane to the accounting and IT worlds. You can even follow developments on The Gateway with RSS feeds that will flow directly to your internet browser or Microsoft Outlook.

The entire site will is fully searchable as well, making it an invaluable knowledge base for anyone looking for technical assistance.  This project will provide new and exciting benefits to all ASCPA members.  So be thinking of your IT questions, and any topics you might be interested in learning more about, because the site is ready to hear from you!

You can find The Gateway through the Resources tab on the ASCPA website.

Click on the IT Resource Center.

Click here to go straight to The Gateway

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