Wash. Sanitize. Repeat.

We’ve all heard the message over and over – wash – sanitize – repeat.  That’s the number one step we’re all hearing daily as the best thing to do to avoid the H1N1 virus – more commonly referred to as the swine flu. Seems almost like a no-brainer, doesn’t it? Mothers have been saying it for years – sounds like once again your parents were right.

Fear of catching the H1N1 virus has everyone – parents, teachers, businesses and consumers alike – a little on edge as we all search for the perfect recipe to protect ourselves, our families and our businesses.  While surgical masks aren’t part of our daily dressing routine, I have seen some people out in public wearing one of the masks (not sure if they’re protecting themselves from others, or others from them!).

Just as it seems very basic to wash your hands thoroughly after you sneeze or before you eat, there are several other things you can do immediately to help fend off the virus:

• Cover your nose and mouth with a tissue when you cough or sneeze. Throw the tissue in the trash after you use it.
• Wash your hands often with soap and water, especially after you cough or sneeze. Alcohol-based hand cleaners are also effective.
• Avoid touching your eyes, nose or mouth. Germs spread this way.
• Try to avoid close contact with sick people.
• Stay home if you are sick until at least 24 hours after you no longer have a fever (100°F or 37.8°C) or signs of a fever (without the use of a fever-reducing medicine, such as Tylenol®). Read detailed information about how long to stay away from others.
• Follow public health advice regarding school closures, avoiding crowds and other social distancing measures.

Need more guidance? There’s an abundance of information out there. One place to start is with a new webinar being offered exclusively to OSCPA members on Oct. 23 – H1N1 Virus Preparedness Planning: What You Need to Know and Do. If you can’t attend the webinar, it will be available in OSCPA’s Online Library the following week and you can listen to it any time. The discussion leaders will walk through what’s real, what’s hype and what you need to know, plus:

• Key factors to know about the potential impact of H1N1: How will it affect your business?
• What is H1N1 and what are the risks?
• Understanding the U.S. Alert stages
• What You Need to Do
• Prevention: Actions employers should take NOW
• Management of employee exposure in the workplace after a confirmed case
• Developing your outbreak contingency plan strategy

If you want to head out on your own, here are a few places to start your search. These resources from the Centers for Disease Control and the Small Business Association can help you prepare your business and even include “fact sheets” you can print out for your staff, your family and friends.

• Action steps to keep your business and employees healthy from the Center for Disease Control
• SBA Preparedness Guide
• 2009 H1N1 influenza vaccine info
• Preparing for the Flu: A Communication Toolkit for Businesses and Employers
• U.S. Chamber H1N1 flu guide to keep businesses in business 
• Business pandemic influenza planning checklist
• Guidance for businesses and employers to plan and respond to the 2009 – 2010 influenza season
• Occupational health issues associated with H1N1 influenza virus (swine flu)

How many times have you said – it’s better to be safe than sorry? It is, isn’t it?

It’s time to take your client communication off auto pilot

By OSCPA member Rick Kavenagh, CPA

Recently I read some alarming facts about how CPAs are viewed by their clients. A recent study of small business owners revealed that 40% of them think that their CPA provides little or no help in making their businesses successful. I also read that 68% of clients who leave their accounting firm do so because they believe their CPA doesn’t care about their business.  These are scary statistics given that the most significant challenge facing CPA firms of all sizes is client retention, according to the AICPA’s 2009 CPA Firm Top Issues Survey.

Reports like these make me wonder if the CPA profession has become complacent in assuming that we will always be the clients’ trusted advisors. There’s a disconnect somewhere. If national surveys show year after year that clients look to us for the quality of our financial advice, why do so many business owners not view their CPAs as a strategic partner in their success?

It may boil down to a simple, but important factor in the relationship — communication.

As a CPA and business advisor, my number one duty is developing relationships with my clients that extend beyond the compliance work.  This is especially important with small businesses, as they often rely on us as a total business solutions provider.

Small businesses are a driving force in our economy. They account for more than 50% of jobs in the private sector, according to the U.S. Small Business Administration. What’s more, they are a significant client base for many CPA firms.

With the weight of the economy bearing down on them, CPAs have a responsibility not only to help keep them afloat, but also to help businesses  prosper.

Today, people are looking for ways to stretch their dollars further, and that includes fees for professional service firms. Just doing the work isn’t good enough anymore. Being a proactive partner with your clients — knowing what their hardships are and delivering solutions — strengthens the relationship and opens doors for your firm to provide additional service in other areas.

How do you provide value added service that gets you recognized as a strategic partner?

• Start by listening. Visit your client and discuss how their business is faring. Find out their pain points.  Identifying solutions for them before they approach you shows you care about their business.
• Connect them to the right people.  If you have expertise in your firm that can help them address a challenge, great. If not, recommend an outside contact that is best suited for the task. Your clients will remember this and view you as a true advocate for their success.
• Offer solutions they didn’t know they need. Helping your clients with strategy each year makes good business sense. But as Harvard Business Review writer Jeff Stibel says, “Planning is important; plans aren’t.”In the current economy, businesses need to react faster because change has become the only predictable constant. Small businesses have a leg up in this area because they don’t suffer from as much bureaucratic lag as larger businesses do. They often are more flexible and adept at taking advantage of opportunities that you identify.
• Be their eyes and ears in the outside world. Monitor legislation that could benefit clients. Pick up the phone or send a quick e-mail to spark conversations even if you aren’t working on an assignment.  The more value you add, the more likely you are to be called to the table for future projects. If you are not reaching out to your clients at least once a month with some communication, someone else will.

Unfortunately, some business owners don’t see the value a CPA brings to their overall business. This can lead to our services being viewed as a price-driven commodity.

It’s time to deactivate auto-pilot and move your client relationships to a higher level.

Show them you are an integral part of their team and you will remain the trusted business advisor they call for advice in good times and in bad.

Rick Kavenagh, CPA is Director, Business Services for Brockman, Coats Gedelian & Co., Akron.

If you’re an OSCPA member who would like to write for our blog, we’d love to hear from you! Send your submissions to Amy Johnson.

Let’s Make a Deal That Makes Sense for Small Business

Listening to wiser-than-me OSCPA Accounting & Auditing Committee members shape a response to the AICPA Accounting and Review Services Committee’s Reliability exposure draft, I’ve noticed that we often circle back to the same discussion: relevance of standards for the smallest of business entities.

Micro-entities comprise more than 50% of the U.S. gross domestic product, and numerous CPAs specialize as trusted advisors to the smallest businesses that collectively drive a significant portion of our economy. Part of our mission in serving the public interest includes looking out for the relevance of the profession’s rules to this important, overlooked segment of the economic picture.

The proposed “reliability” SSARS is a good step in allowing financial statement users to distinguish between independence impairments caused by helping the client prepare more reliable statements and impairments caused by other relationships.  (Whether independence impairments for assisting the client should be allowed in a review is a separate debate, and the primary concern of the committee’s response.) In many cases, users of small business financial statements will be better served knowing that the statements were prepared by a CPA, even if the CPA is not independent due to their level of involvement in the underlying accounting.

The discussion of usability arose again in a review of the FASB preliminary views document on financial statement presentation – a joint IASB/FASB vision of the future of what financial statements will look like. While organization of financial statements by type of business activity may prove useful to analysts of the largest public companies, the committee’s perception was that the benefit to the vast majority of users by no means justifies the costs of conversion and ongoing preparation (The standard should be optional for private companies.)

Reliability, consistency, independence, comparability, relevance –what’s most important in determining the applicability of accounting standards? Most important to that decision is the usefulness to the consumers of the information. As we consider the future of accounting for small business, let’s look behind the doors of three of the most common options under debate.

Behind Door #1: GAAP

Supporters of U.S. generally accepted accounting principles for small business cite research findings that the marketplace values GAAP for its consistency and comparability. An increase in GAAP departures, due to users and preparers frustrated by the irrelevance of requirements such as FIN 48 or FIN46(R) to their specific situation, indicates that some alternative version of GAAP may be preferable for private entities. Whether that will be exceptions to existing GAAP requirements, or a separate “little GAAP” for small business, some users continue to ask for GAAP – as a “known” standard (after all, it’s “generally accepted!”) or “gold standard” (although the U.S. may be losing that status as the rest of the world adopts a combined alternative).

Behind Door #2: IFRS for SMEs

In July 2009, the International Accounting Standards Board issued long-awaited International Financial Reporting Standards for Small and Medium Entities. In issuing a separate set of standards for small business, the IASB recognized the cost/benefit imbalance of more complex disclosures for this segment’s users. IFRS for SMEs presents another alternative for small business owners who:

• Desire separate standards for private entities
• Have no need for more complex disclosures required by U.S. GAAP or full IFRS
• Recognize that sources for capital are increasingly global
• Recognize the potential for future business growth or acquisition internationally

And Lastly, Door #3: The OCBOA Option

One argument for IFRS, presented particularly by accountants in business and industry, is reducing the necessity to maintain separate sets of books when conducting business internationally. For many micro entities, the only set of books maintained is for the purpose of internal business management (possibly a modified cash basis) or tax compliance. Reporting under an Other Comprehensive Basis of Accounting (OCBOA) is an option for the small business user to maintain only one set of books and prepare financial statements on that basis (such as cash, modified cash, or tax basis).

Arguments against OCBOA include a lack of market recognition (the market “values GAAP”) and a lack of consistency, due to the absence of “generally accepted” standards. A frequent discussion of the OSCPA committee is the opportunity to provide greater education and consistency/comparability in OCBOA reporting to maximize value to the profession’s many micro- business clients.

Many lenders to the smallest of businesses would benefit more, the discussion goes, from tax basis financial statements and an agreed-upon procedures engagement verifying cash, accounts receivable and inventory balances, for instance. Such statements would be far more relevant to business owners, for whom the two overriding questions about any action are, “How will this affect my taxes?” and “How much cash do I need?” Many CPAs who serve micro-businesses state that increasing education to lenders and the user public regarding such alternatives would be a public service.

Achieving acceptance of OCBOA statements would be responsive to the “standards overload” issues for practitioners serving small business, and, frankly, address many frequent peer review findings. As the number of practitioners performing attest services continues to decline, directing the full attention of small business specialists to the needs of their clients and the third parties with whom those clients deal would be a win for all.

The profession can serve a role providing presentation and disclosure guidance to practitioners to provide greater comparability and consistency in practice regarding OCBOA engagements. Current professional guidance in this area is dated, and in the absence of such guidance, we run the risk of PPC, CCH or other provider becoming the “standard-setter” in this arena. More importantly, it would help resolve the very real, and very stubborn, application problems many firms face on a daily basis.

The micro-business market and current trends in practice should not be overlooked in shaping the future of private company accounting – we have multiple choices to make in what best serves our public.

CPA/client privilege bill is a positive step for Ohio

Right now, there’s an important piece of legislation being considered in the Ohio Senate that is long overdue for clients of CPAs: S.B. 80. The bill would be a major step forward for Ohio, and for thousands of business owners and Ohio citizens who rely on CPAs to provide qualified financial advice that affects their bottom line.

S.B. 80 would create a very narrow client testimonial privilege that would clear the way for business owners and taxpayers to have confidential, advice-seeking discussions with their CPA on both problems and opportunities before they make critical financial decisions. Right now, businesses and individual taxpayers don’t have the freedom to disclose sensitive details and explore financial strategies with their trusted advisor because their own CPA can be forced via a subpoena to reveal details of these discussions.

But current law puts Ohio businesses and CPAs in a vulnerable position by not giving clients the same testimonial privilege with CPAs — their most trusted financial advisors — as they enjoy with their attorneys, physicians, members of the clergy, and counselors.

The result is that critical conversations are not happening as often as they should, meaning a CPA’s advice is not as accurate as it could be and audit results — which shareholders rely on for investment purposes — are not as comprehensive as they should be.

Further, a business owner can’t have both its attorney and CPA present when trying to get advice on sensitive matters without waiving the attorney/client privilege, and attorneys can’t be as forthcoming as they want to be in the “legal letter” they give to auditors of a business they represent.

The bill cleared the Senate Judiciary-Civil Justice Committee on May 6 with strong support (8-1 vote) and will be put to a full Senate vote in the near future.

Sounds like a no brainer, right? Amazingly, it’s not. OSCPA is facing stiff opposition primarily from prosecuting and trial attorneys who argue its passage would hinder investigators from obtaining necessary evidence to prosecute white collar crime cases.

Nothing is further from the truth. This bill was intentionally written with a very narrow scope — not to protect those who commit crimes but to encourage greater disclosure among clients and CPAs so they can seek qualified financial advice to avoid potential problems or fix past problems.

In fact, investigators would still have access to 98% of the information they now can examine. Literally the only information that would be privileged would be the confidential, deliberative discussions between client and CPA, whether verbally or in writing. All other discussions and documents would be subject to discovery. And even that last bit of protected information could be subject to discovery should the plaintiff’s attorney show the judge (with the 98% of evidence still available) that fraud or crime was involved.

Could it be much ado about nothing on the part of law enforcement interests? While CPAs can be subpoenaed to reveal deliberative conversations right now, this step is very rarely taken. In addition, 17 other states have had a similar or broader statute in place for decades, and white collar crime isn’t running rampant in those locations.

A CPA and former detective/supervisor with the Columbus Division of Police’ Economic Crime unit recently told the Ohio Senate committee that in 15 years of investigating financial crimes, there was not a single case in which investigators in his office questioned an accountant or forced one to testify, and only one such occurrence on the part of the prosecutor. They relied on the financial documents to tell the story for them…documents which remain accessible under S.B. 80.

S.B. 80 is a critical piece of legislation that would encourage clients to more fully disclose strategic plans and discuss problems so they can seek solutions that would keep them in compliance with the law. In today’s troubling economy, Ohioans need all the help they can get.

The bill is supported by The Ohio Society of CPAs (OSCPA), the National Federation of Independent Business (NFIB), the Ohio Chamber of Commerce and the Ohio Manufacturers Association.

Lend your support to this important initiative. Ask your Ohio Senator to vote in support of S.B. 80 this month. For talking points on the issue, contact Barb Benton, OSCPA Vice President, Governmental Affairs at bbenton@ohio-cpa.com.

Tax Season is over, but keep blowing your horn

CPAs everywhere are doing a happy dance. Tax season is over and it was an undeniably tough one. Time to take a deep breath and rejuvenate.

CPAs aren’t the only ones who collectively sigh on tax day. The rest of the public is celebrating because what is a dreaded annual event for many has come and gone. And after April 15, the media doesn’t call as often to speak to members because there’s still a perception that CPAs are the professionals you call only for tax advice.

We’re working hard to change that. Because some of the biggest opportunities lie in what CPAs do for their clients the rest of the year.

CPA. Those three letters make a huge difference when it comes to long-term results and OSCPA is committed to helping the public make that important distinction. CPAs can also get better at tooting their own horns.

Here are a few ways we can jointly promote the role and work of CPAs even before the ink is dry on the tax forms:

April is Financial Literacy Month and a good springboard for building year-round client relationships. Pick up the phone and schedule an appointment to help clients tweak or overhaul their business or personal financial plan.

One silver lining in the recession may be that Americans are quickly changing their spending habits. In a recent AP survey, 54% of taxpayers expecting a refund said they plan to use it to pay bills or reduce debt. Consider sending clients an e-mail with these money-stretching tips for investing their refunds.

At the same time, you can introduce them to the Society’s Financial Fitness Ohio Web site. It includes a wealth of resources for consumers in various stages of life.

Now is a tough time for college graduates entering the workforce. In the latest OSCPA podcast series, “Navigate your Finances in a Turbulent Economy” OSCPA chair-elect Matt Yuskewich, CPA, covers part-time employment options, developing a savings strategy and other important lessons to start graduates off on a solid financial footing.

Changing public perception takes time. But together, we can all help to move the needle. More consumer advocacy groups are demanding that states license and regulate tax preparers. If there’s a movement in Ohio, OSCPA will be in the forefront to ensure that CPAs are NOT subject to any additional levels of regulation or registration.

Therefore, it’s critical that we keep educating the public about why hiring a CPA is really the best year-round financial insurance plan available.

Be part of the conversation

Remember the first time you heard the phrase “think outside of the box?” It was probably by someone at your office who was trying to impress you – as if they were the first person to have this breakthrough idea. Too many times, a catchphrase becomes overused and about as valuable as the hundreds of buzzwords that are floating out there now in the mass media.

But the catchphrase “be part of the conversation” hasn’t caught on yet. It hasn’t been overused and that’s because too many people are not part of the conversation. What conversation you ask? The conversation is the dialogue and exchange of information that is going on 24-7 in cyberspace via social media all around you – at home, at work, even at the supermarket.

What’s more interesting is it’s not just your kids. At first glance, social media is primarily used by tweens, teenagers and college students. Not at all! Yes, that audience is definitely making use of social media. But take a look at a few stats about Facebook users:

• Reports nearly 45.3 million active U.S. users in the last 30 days
• Growing in every age/gender demographic, with the fastest growing segment being women over 55 (up 175.3% in the last 120 days)
• Women comprise 56.2% of Facebook’s audience
• 45% of Facebook’s U.S. audience is now 26+ years old

Sure, you might find your kids on Facebook, but you might just as easily find your mom on Facebook.

Also growing in popularity – especially from a news angle – is Twitter. Simply put, Twitter is texting. In 140 characters or less, you can send a message on what you’re doing, what you’re thinking or what nugget you have found on the Web that you want to share. Twitter is the third largest social network – following Facebook and MySpace.

Who uses Twitter? The better question might be who doesn’t use Twitter. Twitter is becoming the medium of choice for just staying up-to-speed on all issues of interest – whether you are following FASB and their recent fair value guidance, the SEC and the charges pending against Madoff’s auditor or where did Denver trade Jay Cutler.

Social media provides a new type of network for a new type of business world. Being part of the conversation doesn’t mean that you necessarily have to be posting daily. Sometimes being part of the conversation means just being present. Do you want to be part of the conversation or do you want to be left behind?

If you haven’t ventured into “social space” yet, then let OSCPA be your friend out in “social media space.” Find OSCPA on:

• LinkedIn
• Facebook 
• Twitter

The Politicization of Accounting Standard Setting

At one time I would have smacked myself for saying “Amen, Arthur Levitt!” In a Washington Post OpEd, “Weakening A Market Watchdog: An Accounting Rule Change’s Real Costs,” Levitt observes that FASB’s action on fair value measurement in inactive markets and other-than-temporary-impairment is a first erosion of the independence of the accounting standard setting process.

With the passage of Proposed FASB Staff Positions FSP FAS 157-e, “Determining Whether a Market is Not Active and a Transaction is Not Distressed,” and FSP FAS 115-a, FAS 124-a and EITF 99-20-b, “Recognition and Presentation of Other-Than-Temporary Impairments,” the question many are asking is “has the FASB bowed to political pressure on fair value measurement, compromising investor transparency?”

Many have called for further guidance on mark-to-market accounting in illiquid markets (see discussion of “investor views”), and FASB members had asserted that these staff positions clarify much of the intent of the original standards. However, as Levitt observes, while the theory of the latest FASB staff positions may be arguable (not by him,) that doesn’t resolve his fundamental concerns about (1) responding to Congressional pressure to act quickly, and (2) a rush to action without the typical due process of an independent standards setting process.

In a press conference following the FASB decision, Board members responded to criticism that they had succumbed to political pressure, insisting that due process had been achieved, judging from the number of comment letters received during the two-week comment period. A Board member also defended the FASB’s continued role as an independent standard setter, noting however, that it was not immune to observing the current turmoil in the markets.

The CPA profession has long defended the necessity for independence in the standard setting process. In December 2008, outgoing SEC Chair Christopher Cox appealed to the new administration to understand that:“

Accounting standards should not be viewed as a fiscal policy tool to stimulate or moderate economic growth, but rather as a means of producing neutral and objective measurements of the financial performance of public companies.”

Responding to those who advocate setting aside independence in abnormal periods for quick fixes, Cox stated:

“The truth is that the value of independent standard setting is greatest when the going gets tough. The more serious the stresses on the market, the more important it is to maintain investor confidence.”

FASB Chair Robert Herz made the same argument in 2003, citing the lasting truth of a 1978 Journal of Accountancy quote from Professor David Solomons:

“if it ever became accepted that accounting might be used to achieve other than purely measurement ends, faith in it would be destroyed just as faith in speedometers would be destroyed once it were realized that they were subject to falsification for the purpose of influencing driving habits.”

This plea is being lost, as the U.S. House of Representatives considers a non-independent governmental accounting oversight board under HR 1349 — the Federal Accounting Oversight Board Act. This “regulatory reform” would truly be an expansion of government authority over what has historically been an independent process.

Will the SEC bow to political pressure as FASB may have done? Observers state that application of the new rules will be dependent on whether they are supported by auditors and those who regulate the auditors. As a new administration calls for increased scrutiny of large institutions, particularly the financial sector, and also for relaxing of accounting rules, who will be blamed when balance sheets are overly optimistic? The auditors, perhaps?

Rarely will there be an accounting standard that is perfect for all users, but adequate due process provides the opportunity for all voices to be part of the debate. Opening the standard setting process to political interference does not protect the public interest, but instead provides protection for those best able to exert political influence.

There’s reason to come out of the bunker

Two recent presentations I attended made me think how a simple change in attitude can make a big difference during these trying times.

There’s a pervasive bunker mentality sweeping America. Hunkering down is all too easy when the news seems mostly bad. We want to hold tightly to our money, our jobs and our families until the storm passes.

Hardly anyone scoffed at Punxsutawney Phil on Groundhog Day. We’ve come to expect more of the same.

But James Glassman, a senior economist from JPMorgan Chase, helped me see the light. During OSCPA’s Corporate CPAs Conference, Glassman told members that yes, we are experiencing unprecedented times in our country’s economy. But the system is not totally broken. Problems are being solved one day at a time and he predicts the beginning of a recovery later this year. OSCPA members can logon and listen to Glassman’s presentation here.

A bigger problem is the American psyche.

Glassman notes it’s common for people to retreat into a psychological funk when a downturn follows a period of rapid growth. This makes us our own worst enemy.

When in a funk, we don’t think as clearly, have as much energy and we’re not as proactive about capitalizing on our own strengths and those of the organizations we lead.

Glassman’s advice? Businesses and leaders who act and think like winners will come out of this as winners.

So what does acting like a winner look like?

Be the solution. Things are nowhere near as bad as they were in the 1930s.Look for creative solutions to build your business and reduce risk. There are great resources everywhere to help you. Just last week, President Obama announced a new federal program to aid small businesses affected by the credit crunch. There are some key takeaways from this Wharton School post on Disruptive Innovation. Put resources like these to work along with a positive vision of what you want your company or your career to look like a year from now.

Make it easy for your clients and customers to do business with you. Sometimes we’re so caught up in the big problems, we forget the basics. Don’t. Mike Campbell, CPA, reminds you why that’s never been more important with this recent experience. Be available for clients but also show your human side, Rick Telberg advises CPAs in A Crisis is a Terrible Thing to Waste.

Invest in yourself. Everyone is trying to cut costs. But don’t cut yourself short. Keep your skills and your network intact. Go to seminars, meet new people and get a fresh perspective. Try Bob Littell’s NetWeaving approach which is simply sharing your knowledge and your resources without expecting anything in return. OSCPA members can logon to hear Bob’s presentation here.

Pay it forward. Use your time and talent to help others who are struggling. CPAs are just as busy this year as every other tax season, but we’ve had more volunteers taking part in OSCPA consumer tax call-ins than in the past. Why? It feels good to make a difference in someone else’s life. Identify a real need you can fill and give back. Volunteer in your community or in your professional organization.

The ultimate answer to what ails our country may be far down the road. But let’s take the first steps to move ourselves in the right direction.

BWC Rating – an Ohio Economic Development Issue

As I tweeted updates from an Ohio Workers’ Compensation briefing earlier this month, I could almost hear the collective yawns from those reading. Yes, the latest controversies of the Ohio Bureau of Workers’ Compensation (BWC) are best debated by actuaries, but the consequences of recent Bureau action will be far-reaching for Ohio business.

In response to the San Allen case in Cuyahoga County alleging inequities in the Ohio BWC group rating program, the Ohio General Assembly passed HB 79 allowing Ohio’s group rating program to continue, but with modifications. Group rating allows businesses with records of workplace safety to form groups that qualify for premium discounts. Group participants have an incentive to keep claims lower to stay in the group, and the BWC’s own data demonstrates that groups have resulted in reduced claims. To illustrate, participants in OSCPA’s group rating pool have received an annual premium discount of $542,000.

Responding to the case, the Ohio BWC was more than eager to be reactionary, approving sweeping changes introduced in the name of “rate reform” at its March meeting. The most significant changes include:

• Overall base rate reductions for non-group employers, resulting in 25% overall savings.
• A “penalty” for group employers of 31%, accompanied with a previously approved reduction in the maximum group rating discount from 85% to 77%. (A subsequent move to 65% has been proposed.)
• Elimination of the “stacking” of discounts such as the Drug-Free Workplace discount on top of a group rating discount.

These rates were established to correct a $295 million “off-balance” calculation of the Bureau between current group and non-group employers.

Opponents of the rapid action by BWC claim that little transparency was provided in the calculations to allow Ohio employers and their representatives to question the calculation assumptions. Concerns have also been expressed that unintended consequences are not accurately modeled, including:

• Are the discontinuation of groups with lower discounts, and employers leaving groups due to the impact of the penalty, adequately anticipated in projected revenue?
• Does the introduction of regulatory complication and uncertainty further decrease the attractiveness of Ohio as a destination for employers?
• What will be the Ohio business consequences of introducing increased costs of doing business during current economic challenges?

If projected revenue targets are not met due to unintended consequences, does this force increases in the group penalty in future years to correct the new “off-balance,” resulting in a downward spiral of additional unintended consequences that ultimately end the group rating program?

The cumulative result of the Ohio BWC changes is that the selection of the best approach for an employer will be a very individual determination. The best success strategy we can recommend is to stay in close touch with your group sponsor as we progress through current and forthcoming changes. OSCPA will keep the 450 CPA firms in its group rating program informed as this continues to unfold.

Changes approved for 2009 will not likely be noticed by many employers until checks are written in January of 2010. It has been difficult to get the Governor or legislators excited until employers begin realizing the effects. BWC continues to study additional changes for the July 1, 2010 premium year. Legislators and the Strickland administration need to hear from constituents about the true financial impact these changes make for businesses struggling to thrive and grow in these tough economic times.

The Ohio Society of CPAs has been actively involved in working toward minimizing unintended consequences and enacting rate changes over an appropriate timeframe to allow for public transparency and feedback. If you have a relationship with an Ohio legislator or someone on the Ohio BWC Board, now is the time to have an impact. Contact Amy Mignogna, OSCPA Senior Manager of Governmental Affairs, to learn how you can get involved.

Two cents from the “sandwiched” generation

Like it or not, I’m in the “sandwiched” generation. I’m not talking about those who are caring for aging parents and young children. No, I’m talking specifically about the members of Generation X who feel sandwiched between the Baby Boomers and Generation Y.

I think many Gen Xers, including myself, are insulted nearly every time the subject of generations comes up, whether it’s in the news, on TV, by a public speaker or even in casual conversation. Gen X seems to be the butt of continual jokes. Some of the infuriating descriptions include saying we’re disloyal and always looking for “what’s in it for me.” Gen X is sometimes depicted to be lazy. They are the first generation predicted to not be as financially stable as their parents.

In the book Generation X, written in 1991 by Douglas Coupland, the Gen X stereotype was created.  A stereotype that painted us as “hopeless, frustrated and unmotivated slackers.” Ouch! What’s worse is the tag stuck and the stereotype still exists today.

And here we sit sandwiched between the “me” generation and the next “great” generation. We’re paying the price for the very way that we were raised by Baby Boomers and, at the same time, feeling like we’re just filling space until the next great generation is ready to take over. Seriously?

I don’t think anyone would argue that generations are very much a product of their environment. The adults (a.k.a., the parents, the teachers, the coaches, the executives, the role models) set the stage for the next generation.

The Baby Boomers clearly had a strong work ethic. They deserved the term “workaholics” – a term that was coined in the 60s. As women entered the workforce, more and more households had two working parents. Sadly, this led to some of the traditions and customs that had been the centerpiece of the American home slowly fading into the past. The family dinner is one that first comes to mind. How many people grew up sitting down to a family dinner every night of the week? How about once a week? You see it on Leave it to Beaver, and other TV shows, but for Generation X and the generations that follow, that’s just not reality.

For Gen Xers, the loss of quality family time seemed to be most noticeable and something we wanted to change. What you have now is the pendulum swinging the other way as Gen Xers become the parents and create the life they actually want. Gen Xers put an emphasis on the family first, and career second. Gen X exhibits great loyalty – but that loyalty is to their family. This generation is trying to achieve a work/life balance. Many are willing to forego the corner office and six-figure salary and instead spend time coaching their son’s little league team and taking their kids to the zoo. It doesn’t mean that this generation is any less intelligent or capable. This generation simply has a different set of priorities.

Ultimately, this may be to the detriment of their career and their financial futures. It hasn’t really helped that Gen X is also trying to survive a dot-com bust and the current recession that has produced a jobless rate for Gen Xers at 8.7%.

We all do the best we can with the knowledge and the resources we have at the time. History may well be unkind to the less-than-spectacular financial successes of Gen X. It may be that Generation Y is the next “great” generation. But for my two cents, I’m a proud, card-carrying member of Generation X who is logging off for the day so I can take my kids to the zoo.