By Michael J. Fleming
Nexus, it’s a fairly simple five letter word that the Miriam—Webster dictionary defines as a connection or link. At first glance the word doesn’t appear very scary, mystical or confusing, but when used in the context of taxes it is often one of the most misunderstood, misinterpreted and underestimated issues; making it a very common cause of tax problems. Why does this seemingly non-threatening word generate such heartburn in multi-state businesses?? Start with the US Constitution, add a couple federal laws and Supreme Court cases, multiply that by the laws passed in the each of the fifty states, then apply that to different categories of taxes, factor in states hungry for revenue and top it off with an ever evolving economy and you have your answer. Nexus is not static; states are constantly pushing the nexus envelope trying to increase their tax base. So even if you are a nexus expert (a Nexpert?), nexus is a topic that requires continuous monitoring and updating of knowledge. The following discussion is intended to provide a glimpse into some of the basics of nexus and the role of physical presence.
A Peisner Johnson & Company Blog
Friday, July 29, 2011
Thursday, July 14, 2011
As a Leader of a CPA Firm, What Keeps You Up at Night?
The AICPA Survey Lists CPA’s Top Five Concerns, But Did They Ask the Right Question?
And the Survey Said?
In a recent survey, the AICPA polled some 577 CPA firms with the question of “what is your chief business concern?” A compelling question to be sure, and the answers are telling of our current economic situation. However, in our review of the survey and the accompanying analysis by the AICPA, we began to wonder if the survey was asking the wrong question. As evidenced by the survey itself, the issues brought up by the firms are indicative of the times we’re in. But, based on a review of prior surveys, this year’s top concerns probably won’t be the same as next year’s concerns (just take a look at the top concerns in 2009 or 2007). In order to find out what really troubles CPAs, instead of asking what concerns them, we might ask a more specific and telling question. How about this: “As a leader in a CPA firm, what issues keep you up at night?” Likely the answer to this question is far different than simply “What are your biggest concerns as a CPA?” Now, that would be an interesting survey.
I’ll tell you one thing that sometimes keeps me, as a leader of my CPA firm up at night is a worry that we made a mistake on something, or we missed some issue we should have caught. We don’t do attest work; we are state and local tax consultants—that’s all we do.
What Keeps You Up at Night?
I’d be willing to bet it’s not state and local tax—and that’s understandable. But let me tell you why it might need to be especially for your attest clients and what you can do about it.
And the Survey Said?
In a recent survey, the AICPA polled some 577 CPA firms with the question of “what is your chief business concern?” A compelling question to be sure, and the answers are telling of our current economic situation. However, in our review of the survey and the accompanying analysis by the AICPA, we began to wonder if the survey was asking the wrong question. As evidenced by the survey itself, the issues brought up by the firms are indicative of the times we’re in. But, based on a review of prior surveys, this year’s top concerns probably won’t be the same as next year’s concerns (just take a look at the top concerns in 2009 or 2007). In order to find out what really troubles CPAs, instead of asking what concerns them, we might ask a more specific and telling question. How about this: “As a leader in a CPA firm, what issues keep you up at night?” Likely the answer to this question is far different than simply “What are your biggest concerns as a CPA?” Now, that would be an interesting survey.
I’ll tell you one thing that sometimes keeps me, as a leader of my CPA firm up at night is a worry that we made a mistake on something, or we missed some issue we should have caught. We don’t do attest work; we are state and local tax consultants—that’s all we do.
What Keeps You Up at Night?
I’d be willing to bet it’s not state and local tax—and that’s understandable. But let me tell you why it might need to be especially for your attest clients and what you can do about it.
Subscribe to:
Posts (Atom)