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Vol. 25 I No. 5 I May 2011 accountingtoday.comCLOUDY, WITH A CHANCE OF SAAS MICROSOFT LAYS OU T A BROAD S TRATEG Y FOR DYNAMICS IN THE CLOUD See our report from Convergence on page 8 Building a brand-new brand A proper ;rm rebranding starts with the fundamentals Marketingprofessionalsare fond of telling clients to look to the logo and beyond when it comes to branding. But for many CPA ;rms, the economic do wn- turn had managing partners’ eyes trained on only one line — and it wasn’t underlining a focus- group-tested font. Now that the financial land- scape is improving, ;rms are re- considering their brand, and what he word means. For most ;rms, it represents a core identity. “It’s important that a ;rm de- velop a brand that is truly who they are,” ackno wledged Jean Marie Caragher, president of Chesapeake, Va.-based Capstone Marketing. “Not something they wish they were or strive to be.” Uncovering an intrinsic per- sonality, ho wever, will usually require some outside help and extensive research. Katie Tolin, as marketing di- rector of Ohio CPA and business advisory ;rm Rea & Associates, is currently in the middle of this process. ;e ;rm’s “many stages of research” kicked off last fall — and started with the basics. “We even looked at, ‘Is our name right?’” she revealed. While the local consulting ;rm that Rea & Associates brought in for the research phase helped them realize that it indeed was, the accounting profession ben- efits from being hard- wired to look at fundamental aspects like this on a micro level. “I work with detail-oriented people,” Tolin explained. “Any change recom- mended needs to be based on some serious statistics.” Especially when these changes come so infrequently. Rea & As- sociates has not gone through such an extensive overhaul since its founding in 1938. In her expe- rience, Caragher has noticed that rebranding often coincides with ;rm anniversaries. Two ;rms re- cently chose their 85th and 90th years as occasions for change. Anca S. Munteanu, director of marketing for East Coast account- ing, tax and consulting ;rm Citrin Cooperman, might have had a similar wait on her hands if not for the speci;city of her proposal. She had realized that there was a disconnect bet ween the brand and the culture that had outgrown ;ousandsoftaxcredits,deduc- tions and other incentives are hidden throughout the Tax Code. Some, suchas the Blender’s Credit, are obscure, while others, such as the Earned Income Tax Credit or the various energy credits, are well kno wn. ;ese provisions, both for indi- viduals and businesses, are an im- portant part of the tax landscape, yet they can be complicated. Al- though many of them appear and isappear at the whim of Congress, taxpayers and their advisors can unlock significant tax savings through judicious use of credits and incentives. Congress has a long history of using the Tax Code to encourage certain types of behavior, accord- ing to Dan Shapiro, a tax partner at Ne w York-based firm Berdon. “Tax credits and incentives are intended to be indirect subsidies for investment in di;erent areas, as well as inducements to engage in particular behavior,” he said. ;ose include personal credits, designed to furnish bene;ts and in- centives to certain taxpayers such Taking credit Tax pros ;nd host of ne w or under-used credits, deductions See CREDIT on52 Playing defense Engagement letters are just the ;rst line in protecting a ;rm against liability ;eoldadageof“Putitinwrit- ing” remains as valid today as ever as a hedge against ;rm malprac- tice claims. “A properly worded engage- ment letter that includes a clear statement of the professional ser- vices provided, that is updated fre- quently for changes in activities, and contains reasonable limita- tionand mediationlanguage is the best shield to a malpractice claim,” said Rick Jorgensen, president and chief under writing o;cer at Jorgensen & Co., a professional iability and risk management consulting firm. “We have seen many instances where a CPA ;rm gets dragged into costly litigation because of the professional rela- tionship with a client that was not See DEFENSE on50 See REBRANDING on51 B Y DANIELLE LEE BY ROGER RUSSELL B Y ROGER RUSSELL OUT OF THE CLASSROOM P. 6 CPE is moving from long sessions of live learning to shorter, more mobile ‘bites’ of instruction CASE STUDIES P.34 We examine ;ve ;rms’ experiences with implementing document managementSPECIAL SPECIAL REPORT INSIDE THE TOP 100 See page 11

LIVING WITH RISK P. 31 A special report on dealing with ;nancial planning clients’ new aversion to volatility

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Vol.25INo.5IMay2011 accountingtoday.com

CLOUDY, WITH A CHANCE OF SAAS

MICROSOFT LAYS OUT A BROAD STRATEGY FOR DYNAMICS IN THECLOUD

See our report from Convergence on page 8

Building a brand-new brand

A proper ;rm rebranding starts with the fundamentals

Marketingprofessionalsare

fondoftellingclientstolookto thelogoandbeyond whenit comestobranding. Butformany CPA;rms, theeconomicdown-turnhadmanagingpartners’eyes trainedononlyoneline—and it wasn’tunderliningafocus-group-testedfont. Nowthatthefinancialland-scapeisimproving,;rmsarere-consideringtheirbrand, and what thewordmeans.Formost;rms,it representsacoreidentity.

“It’simportantthata;rmde-
velopabrandthatistruly who
theyare,” acknowledged Jean
Marie Caragher, president of
Chesapeake,Va.-basedCapstone
Marketing. “Notsomethingthey
wishtheywereorstrivetobe.”
Uncoveringanintrinsicper-
sonality,however,willusually
requiresomeoutsidehelpand
extensiveresearch.
Katie Tolin, as marketingdi-
rectorofOhioCPAandbusiness
advisory;rmRea&Associates,
iscurrentlyinthemiddleofthis
process.;e;rm’s“manystages
ofresearch” kicked offlastfall
—andstarted withthebasics.
“Weevenlookedat,‘Isourname
right?’”sherevealed.
Whilethelocalconsulting;rm
thatRea&Associatesbroughtin
fortheresearchphasehelped
themrealizethatitindeedwas,
theaccountingprofessionben-
efitsfrombeinghard-wiredto
lookatfundamentalaspectslike
thisonamicrolevel. “I work with
detail-orientedpeople,” Tolin
explained. “Anychangerecom-
mendedneedstobebasedon
someseriousstatistics.”
Especiallywhenthesechanges
comesoinfrequently. Rea&As-
sociateshasnotgonethrough
suchanextensiveoverhaulsince
itsfoundingin1938. Inherexpe-
rience,Caragherhasnoticedthat
rebrandingoftencoincides with
;rmanniversaries. T wo;rmsre-
centlychosetheir85thand90th
yearsasoccasionsforchange.
AncaS.Munteanu,directorof
marketingforEastCoastaccount-
ing,taxandconsulting;rmCitrin
Cooperman, mighthavehada
similarwaitonherhandsifnotfor
thespeci;cityofherproposal.
Shehadrealizedthattherewas
adisconnectbetweenthebrand
andtheculturethathadoutgrown

;ousandsoftaxcredits, deduc-

tionsandotherincentivesare hiddenthroughouttheTaxCode. Some,suchastheBlender’sCredit, areobscure, whileothers, suchas theEarnedIncomeTaxCreditor thevariousenergycredits,arewell known. ;eseprovisions,bothforindi-vidualsandbusinesses, areanim-portantpartofthetaxlandscape, yettheycanbecomplicated. Al-thoughmanyofthemappearand disappearatthewhimofCongress, taxpayers andtheiradvisorscan unlocksignificanttaxsavings throughjudicioususeofcredits andincentives. Congresshasalonghistoryof usingtheTaxCodetoencourage certaintypesofbehavior, accord-ingtoDanShapiro,ataxpartner atNewYork-basedfirmBerdon. “Taxcreditsandincentivesare intendedtobeindirectsubsidies forinvestmentindi;erentareas, as wellasinducementstoengagein particularbehavior,”hesaid. ;oseincludepersonalcredits, designedtofurnishbene;tsandin-centivestocertaintaxpayerssuch

Taking credit Tax pros ;nd host of new or under-used credits, deductions

See CREDIT on 52

Playing defense Engagement letters are just the ;rst line in protecting a ;rm against liability ;eoldadageof“Putitin writ- ing” remainsasvalidtodayasever asahedgeagainst;rmmalprac-ticeclaims.

“Aproperly wordedengage-mentletterthatincludesaclear statementoftheprofessionalser-vicesprovided, thatisupdatedfre-quentlyforchangesinactivities, andcontains reasonablelimita-tionandmediationlanguageisthe bestshieldtoamalpracticeclaim,” saidRickJorgensen,president andchiefunder writingo;cerat Jorgensen&Co., aprofessional liabilityand riskmanagement consultingfirm. “Wehaveseen manyinstances whereaCPA;rm getsdraggedintocostlylitigation becauseoftheprofessionalrela-tionship withaclientthat wasnot