BKD Sails into the Windy City

180x150-BKDTed Dickman, CEO of national CPA and advisory firm BKD, LLP, is proud to announce that BKD and Chicago-based accounting firm Wolf & Company are joining forces. Wolf will officially become part of BKD on November 1, 2014.

“BKD and Wolf are an excellent fit for each other,” Dickman said. “In addition to our cultural similarities, both firms focus on offering high-quality service to clients and rewarding career opportunities for our associates. This combination gives us a strong physical presence in the nation’s third-largest market, where we have been looking to get on the ground for several years.”

Wolf is one of the Chicago metropolitan area’s leading CPA and advisory firms, providing a range of services, including wealth management and personal financial planning, to more than 2,000 clients from locations in Oakbrook Terrace and downtown Chicago, Illinois. The addition brings about 140 personnel into the BKD team, including 18 partners. Wolf Managing Partner Russell Romanelli will join BKD as managing partner of BKD Chicago, which will primarily serve clients from its Oakbrook Terrace office.

“This is going to have huge benefits for Wolf, BKD and our clients,” Romanelli said. “Together, our vast knowledge and resources will help us provide better service to an increasingly complex mix of clients.”

BKD’s thought leadership spans many industries and service areas, including wealth management, private equity, corporate finance, business transition, international business, forensics, valuation and technology. Wolf serves many of the same industry niches as BKD, including health care, manufacturing, construction, financial services and not-for-profit.

By adding Wolf, BKD now has 34 offices in 15 states and $475 million in revenue. The firm’s approximately 2,250 personnel, including more than 260 partners, serve clients in all 50 states and internationally. BKD provides a wide range of assurance, tax and accounting outsourcing services. The firm also provides specialized consulting to numerous industries, including health care, financial institutions, insurance, manufacturing, distribution, construction, real estate and energy, along with not-for-profit organizations, governmental entities, colleges and universities.

BKD already serves more than 200 clients in the Chicago area and has one Illinois office in Decatur.

About BKD
BKD, LLP, a national CPA and advisory firm, helps people and businesses realize their goals. Our 2,100 professionals, including approximately 250 partners, offer solutions for clients in all 50 states and internationally. BKD and its subsidiaries offer clients a variety of services, and we combine the insight and ideas of multiple disciplines to provide solutions in a wide range of industries. To learn more, visit bkd.com.

Praxity, AISBL, a global alliance of independent firms, enhances BKD’s ability to serve the dynamic needs of multinational clients. Praxity™ provides the gateway to tax, assurance and consulting services delivered by alliance firms committed to the highest standards required in international business

Increasing demand for SOC Engagements

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kelli falkBy Kelli Falk, CPA, CIA, CISA, CITP

Does your organization perform services for other companies or act as a user organization that outsources some of its processes to another company?  In either case, you should be aware of the guidance related to service organizations.

ps&coIt has now been almost five years since the American Institute of Certified Public Accountants (AICPA) issued its updated guidance related to an entity’s use of service organizations – SSAE No. 16, Reporting on Controls at a Service Organization; AICPA, Professional Standards, Vol. 1, AT Section 801) and Attest Engagements AT Section 101, This change was due to the increase in outsourced processes that do not necessarily fall within the financial reporting category previously addressed by Statement on Auditing Standards (SAS) No. 70, Service Organizations, AU Section 324.

Since that time, there has been a dramatic increase in demand for Service Organization Controls (SOC) engagements.  While you might not think of your company as a service or user organization, there are numerous situations, industries, and even types of companies that would benefit from this type of examination:

  • Confidentiality over records retention for municipalities, marketing plans, etc.
  • Cloud computing/Software as a Service (SaaS)
  • Direct mail marketing
  • Secure printing
  • Data storage/data centers
  • Managed services
  • Medical claims processing
  • Third-party administrator for employee benefit plans
  • Welfare case management
  • Gambling systems
  • Secure payment processing/lockbox services
  • Loan processing
  • Title companies
  • Hospice organizations
  • Payroll processing
  • Records management

The extent of these engagements can vary greatly; some might only consider confidentiality of customer data, while others cover all aspects of an application’s processing integrity.  The scope is entirely up to the service organization and is based on the needs of its users.

The increase in these engagements is due to recent high-profile security breaches and the never-ending push for tighter security.  Because of these, user organizations have become much more aware of their needs related to outsourcing their processes.  They have learned – sometimes the hard way – that just because a process is outsourced, the associated risks are not.

This is where the SOC engagements enter the picture.  They are designed to cover any controls over which users need assurance.  It is also a great benefit for the service organizations themselves because they can be audited one time instead of continually answering questions from their customers’ auditors, or even incurring significant time and resources by being audited by each customer’s auditor.  We have seen several instances in which a client needed a SOC report immediately because they could not obtain a lucrative contract without it.  In some cases, clients use the report as a marketing tool to give their prospective customers assurance that their controls are functioning as stated.  The uses of the reports are plentiful.

If you feel you or your service organization needs a SOC engagement over its controls, please feel free to contact Kelli Falk at kelli.falk@padgett-cpa.com or (210) 253-1669 for more information.

Padgett, Stratemann & Co. announces new promotions

Padgett Stratemann & Co.Padgett, Stratemann & Co., L.L.P. (PS&Co.), one of Texas’ premier CPA and business advisory firms, is pleased to announce several new promotions throughout the firm.

Kothmann, Will_Cropped1Will Kothmann, CPA – Will is the newest audit partner at PS&Co.  He has more than ten years of public accounting experience serving energy, retail, construction, manufacturing, and distribution industries.  Will has a bachelor’s degree in accounting from Texas A&M University in College Station and is involved with the American Institute of Certified Public Accountants (AICPA), the Texas Society of Certified Public Accountants (TSCPA), the San Antonio Chapter of TSCPA, and the Petroleum Accountants Society of San Antonio. He was named one of the San Antonio Business Journal’s “40 Under 40” in 2012. Will is a 2010 graduate of the North San Antonio Chamber of Commerce Leadership Lab program, the treasurer of the Phil Hardberger Park Conservancy, and a committee member of S.A.L.E. for Kids for San Antonio Livestock Exposition.

Munoz, Leo_Cropped2Leo Munoz, CPA/CFF, CFE – Leo is a senior manager and has been promoted to partner-in-training.  He has more than 24 years of accounting, finance, and management experience in public accounting, in industry, and as a business owner.  He spent six years in public accounting in the audit department of a national public accounting firm, nine years in various director-level financial positions with a publicly-held company, and three years as a partner in a real estate investment company. He holds a bachelor’s degree in accounting from St. Mary’s University, San Antonio, Texas and is a certified public accountant, a certified fraud examiner and is certified in financial forensics. Leo is a member of the AICPA, TSCPA, and the Association of Certified Fraud Examiners (ACFE) and is a graduate of Leadership San Antonio Class 38.

Foshe, Renee_cropped3Renee Foshee, J.D., LL.M. (Taxation), CPA – Renee has been promoted to manager in the tax department. She is an attorney, a certified public accountant, and a former adjunct professor of accounting. Her practice is concentrated in federal and international tax issues. Renee holds a LL.M. in taxation from the SMU School of Law in Dallas, a juris doctorate from the Texas Tech School of Law, and a master of accountancy from Texas State University in San Marcos. She is active in the Bexar County Women’s Bar Association, the AICPA, serves on the board of directors of the TSCPA and the San Antonio CPA Society, and is the treasurer of the International Law Section of the San Antonio Bar Association.

Hatch, Alissa_cropped4Alissa Hatch, CPA – Alissa has been promoted to tax manager. She specializes in tax compliance and planning within the private client services niche, working with high-wealth individuals and family-owned businesses, and in the financial institutions niche.  Alissa has a BBA and a master’s of accountancy from The University of Iowa in Iowa City, Iowa and is a certified public accountant. She is a member of the AICPA, the TSCPA, the San Antonio Chapter of the TSCPA, and serves as the treasurer for the Alamo City Cancer Council.

Hyde, Michelle_cropped5Michelle Hyde, CPA – Michelle has been promoted to audit manager. She primarily serves the public sector industry and audits various public sector entities, including school districts, not-for-profits, municipalities, local government agencies, and various state agencies.  She has more than 13 years of accounting experience and holds a bachelor’s degree in accounting from The University of Texas at San Antonio, and is a certified public accountant. Michelle is a member of the AICPA, the TSCPA, and the San Antonio Chapter of TSCPA.

Niblett. Linda_cropped6Linda Niblett, CPA – Linda has been promoted to a manager in the audit department. She has more than seven years of public accounting experience, primarily in financial and compliance auditing for state and local governments and not-for-profit organizations.  She also has audit experience in the manufacturing, construction, and insurance industries.Linda has a bachelor’s degree in accounting and finance from St. Edward’s University in Austin and is a member of the AICPA and the TSCPA.

Turner, Matt_cropped7Matt Turner, CPA – Matt has been promoted to manager in the audit department.He has more than seven years of public accounting experience, including services provided to the manufacturing, retail and distribution, construction, and banking industries. Matt has a master’s and bachelor’s degree in accounting from Trinity University in San Antonio, is a certified public accountant, and is a member of the AICPA and the TSCPA.

About PS&Co.
PS&Co. is one of Texas’ largest locally-owned CPA and business advisory firms.  In business since 1945, PS&Co. has offices in San Antonio and Austin.  The firm is dedicated to professional excellence, integrity, and community service. PS&Co. provides a range of sophisticated accounting, audit, tax, and other business advisory services for both publicly-traded and private companies.  Its experienced professionals serve clients in various industries, including banking, construction, communication, entertainment, government-based, non-profit, medical, professional services, manufacturing, retail, distribution, technology, insurance, oil and gas, and real estate.  PS&Co. is a member of the RSM McGladrey Network, the premier affiliation of independent accounting and consulting firms in the nation.  To learn more about our services, visit www.padgett-cpa.com.

 

Zackery Holloway joins BKD

180x150-BKDZack HollowayJon M. McDowell, managing partner of BKD, LLP’s San Antonio office, is pleased to announce the addition of Zackery Holloway as an associate in the tax department in BKD’s San Antonio office.

Holloway is a 2014 graduate of The University of Texas at San Antonio with a Master of Accountancy.  Holloway has worked as a tax intern with BKD San Antonio since January 2013.

About BKD
BKD is the top-tier U.S. CPA and advisory firm that delivers its experience and service with a deep understanding of your business, your needs and what it takes to improve your business performance.  BKD’s approximately 2,000 personnel, including approximately 250 partners, are based in 32 offices serving clients in 50 states.  To learn more, visit www.bkd.com.

Praxity, AISBL, a global alliance of independent firms, enhances BKD’s ability to serve the dynamic needs of multinational clients. Praxity™ provides the gateway to tax, assurance and consulting services delivered by alliance firms committed to the highest standards required in international business.

Padgett Stratemann named 106th largest accounting firm in the United States by Accounting Today Magazine

Padgett Stratemann & Co.Padgett, Stratemann & Co., LLP (PS&Co.), one of Texas’ premier CPA and business advisory firms, has been named the 106th Largest Accounting Firm in the United States by Accounting Today magazine, a leading provider of online business news for the tax and accounting community, in its 2014 Beyond The Top 100: Firms To Watch list.

top100firmsIn addition, the firm ranked as the Fourth Largest CPA Firm in the Southwest, which spans Arizona, New Mexico, Oklahoma, and Texas. Overall, firms on this list saw an 11.03% increase in revenue, due mostly to the booming oil and gas and energy industries.

“It is an honor to be ranked as one of the top accounting firms, both in the United States and in our region, said John Wright, PS&Co.’s Managing Partner. “We take pride in offering Service. More Than Expected to our clients and owe our continued growth to our team’s focus on service and exceeding our client’s expectations.”

The Accounting Today 2014 lists were developed based on both revenue and number of employees. To view the entire Accounting Today publication, click here.

BKD, LLP announces promotions

BKD logoJon McDowell, managing partner of BKD, LLP San Antonio office, announces the promotion of Stephanie Bostick and Shawn Loader to manager (tax), Cristina Baumgardner to senior consultant II (Forensics & Valuation Services) and Nathan Scheel to senior associate (audit) April 1, 2014.

Career paths at BKD are divided into levels, and each position is defined by its own set of duties, responsibilities and competencies requiring cumulative and advanced degrees of education, training and experience.  Personnel also must demonstrate their leadership abilities as coaches and mentors, as well as taking an active role in their community.  Individuals become candidates for promotion after successfully mastering their existing level.

Stephanie Bostick BKD_Jan 2012“These individuals have consistently proven their commitment to providing unmatched service to our clients and their commitment to our profession,” said McDowell. “I am proud to work with these talented individuals.”

Shawn Loader BKD_Jan 2012Bostick and Loader serve clients in an array of industries and personal wealth planning.  Bostick graduated from Texas Lutheran University with a Bachelor of Business Administration in Accounting in 2009.  Loader is a 2008 graduate of Trinity University with a Bachelor of Science and a Master of Science of Accounting.

Christina Baumgardner_2012Baumgardner provides fraud investigation, litigation support and data mining services in BKD’s Forensics & Valuations Services division.  She is a 2005 graduate of The University of Texas at San Antonio with a Master of Science in Finance after previously attaining a BBA in Accounting.

Nathan  Scheel_Jun 2012Scheel serves clients in the not-for-profit, manufacturing and distribution, construction, energy and financial services industries.  He graduated from Texas Lutheran University with a Bachelor of Business Administration in Accounting and Business Management in 2012.

 

About BKD
BKD, LLP is the top-tier U.S. CPA and advisory firm that delivers its experience and service with a deep understanding of your business, your needs and what it takes to improve your business performance.  BKD’s approximately 2,000 personnel, including approximately 250 partners, serve clients in 50 states and more than 40 countries.  To learn more, visit www.bkd.com.

Praxity, AISBL, a global alliance of independent firms, enhances BKD’s ability to serve the dynamic needs of multinational clients.  Praxity provides the gateway to tax, assurance and consulting services delivered by alliance firms committed to the highest standards required in international business.

BKD, LLP Recognized as Bronze LearningElite Organization

BKD logoTed Dickman, BKD, LLP chief executive officer, is proud to announce BKD has been named a Bronze LearningElite organization for 2014 by Chief Learning Officer magazine. Singled out for creating and implementing exemplary workforce development practices that deliver measurable business value, BKD, LLP ranked No. 49 from a record-breaking field of more than 200 companies participating in the prestigious annual benchmarking program.

“At BKD, people are our No. 1 asset,” Dickman said. “To deliver unmatched client service, we must continually invest in their technical expertise and develop them as leaders. BKD professionals have access to a wealth of knowledge and tools they need to do their jobs effectively, efficiently and ethically. We’re extremely flattered that Chief Learning Officer magazine has acknowledged our commitment to lifelong learning.”

The only peer-reviewed ranking and benchmarking program developed in collaboration with chief learning officers and senior workforce development practitioners, the LearningElite has become the industry’s most valuable benchmarking tool. The program utilizes rigorous evaluation methodologies to objectively assess both the scope and value of participants’ learning and development practices and to rank the organizations based upon the execution and impact of these initiatives.

“The firm has made significant progress towards our goal of being an industry-leading learning organization,” said Greg Cole, director of the firm’s Learning & Development department. “It’s about developing a world-class training system that better ties our mission statement and unmatched client service standards to our performance management system and curriculum for coordinated training events and on-demand learning. The feedback we’ve received has been overwhelmingly positive.”

BKD University (BKDU) is the latest enhancement to the firm’s educational infrastructure. BKDU is an online, on- demand platform housed on the firm’s intranet that gives personnel access to a wide range of content that includes technical training as well as shorter, more digestible video clips on leadership, ethics, client service and technology.

About BKD
BKD, LLP is a national CPA and advisory firm that understands your business and delivers the resources you need with a service style you’ll value. BKD’s approximately 2,100 personnel, including approximately 250 partners, serve clients in all 50 states and internationally. To learn more, visit bkd.com.

Praxity, AISBL, a global alliance of independent firms, enhances BKD’s ability to serve the dynamic needs of multinational clients. Praxity™ provides the gateway to tax, assurance and consulting services delivered by alliance firms committed to the highest standards required in international business.

Financial reporting and internal controls for the entrepreneur

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By Bryan Edwards, Manager of PS&Co.’s Accounting Solutions Group

Most small business owners start with a dream of independence that then turns into a vision of how to make money while meeting the needs of others. That need is met with a marketable product or set of skills that typically involves doing something the entrepreneur really enjoys. But along with the passion comes the reality of other things you have to do to ensure you are really doing as well as it seems you are doing. Financial reporting, clear accounting procedures, and internal controls are the keys to distinguishing between perceptions and reality.

If you have bank financing, your banker will require regular financial reporting; and even if you don’t, some basic accounting controls and procedures are necessary. You may hire someone (or several people) to work in your office to keep track of the paperwork while you sell and run your business. There are many good accounting packages out there you can purchase off the shelf at a relatively low cost (QuickBooks works well for many, if not most start-ups).  But simply buying an accounting package, hiring a couple of people, and hoping for the best never works out well.  A systematic approach to accounting, finance, and managing the money that begins even before you open the doors is necessary.

Doing so provides several benefits, namely:

  • Greater organization
  • A common purpose among all workers
  • Cost savings
  • Happier, more productive employees
  • Less risk of fraud and theft
  • Bankers who are more likely to extend additional credit
  • Clarity of results that isolates both problems and opportunities quickly

Internal controls are key. If you only have one employee in your office, be sure another employee works in at least a part-time capacity in the office so that the same person is not handling, reconciling, and accounting for cash, for instance. The person who makes a bank deposit should not prepare checks. Have someone who does not prepare checks or make the bank deposit reconcile the bank account. And the check preparer should not be the sole signer of checks unless it is you, the owner.  Having at least two sets of eyes on each accounting process (e.g., cash receipts and cash disbursements) greatly lessens the likelihood of theft. No employee should effectively authorize his or her own work, particularly when that work involves handling currency, making bank deposits, and preparing checks.  It is recommended that, initially, the entrepreneur take a very active role by signing checks personally and approving all wire transfers so that he or she can guard against any fictitious payees. While there is no perfect set of internal controls, there are a few simple precautions you can take that will lessen the likelihood of fraud and theft.

When contemplating a new business venture one of your first conversations should be with a CPA firm. Eventually you will need to deal with taxes, but even before then, the firm can recommend software, help you set up procedures, and even help you find a bookkeeper. A close working relationship with a CPA firm is typically money well spent. Hire someone you trust and with whom you feel you can communicate candidly about the ups and downs of running a business.

Finally, recognize that you must invest in your accounting and internal control environment. Trying to pinch pennies at the outset generally leads to more costs in the long run, not to mention squandered opportunities because you didn’t see something that clear, concise, and timely financial reporting would have otherwise revealed to you.

For more information on financial reporting or internal controls, please contact Bryan Edwards at (210) 828-6281.

UNITED SA Federal Credit Union announces new Board Chairperson

PrintUNITED SA Federal Credit Union is pleased to announce the appointment of Bill Gregory as chairperson of the board of directors. Mr. Gregory has been a certified public accountant in San Antonio for 29 years and is the managing member of the CPA firm of Gregory & Crutchfield, LLC.  He also has experience in banking, real estate and the oil and gas industry.

At the 59th annual membership meeting held on March 6, 2014 at the credit union’s headquarters, Peter Hugdahl was re-elected and Arthur Settles was elected to serve on the board. Directors are elected annually by credit union members and serve three-year terms on a voluntary basis.

Bill_Gregory_5x7_colorServing on the board in 2014 with Mr. Gregory will be: Rick Tobias, vice chairperson; Don Mann, treasurer; Richard Baggs, secretary; Peter Hugdahl; Rosaura Ramirez; John Rees; and Arthur Settles.

About UNITED SA Federal Credit Union
Now in its 59th year, UNITED SA Federal Credit Union is headquartered in San Antonio, Texas. The credit union’s field of membership includes those who live, work, worship, attend school and businesses and other entities in Bexar County, Texas. Almost 30,000 members own and belong to the nonprofit financial cooperative, which has over $225 million in assets.