ESG is not new. Business and government leaders have been discussing corporate social responsibility for decades. But the heightened turbulence of the last two years has ignited a sharper focus on environmental, social and governance matters that’s shaking up every organization and industry around the world — and presenting significant opportunities for the accounting and finance profession.

https://www.accountingtoday.com/list/a-sharper-focus-on-esg

The value of client advisory services and its impact on the accounting profession can no longer be denied, as recent data shows explosive growth within just a few short years. But even if many firms are now offering these services, it is not certain they will do it well, nor that they will generate a lot of revenue from it.

https://www.accountingtoday.com/news/client-advisory-service-revenues-leave-other-services-in-the-dust

The impact of the coronavirus pandemic on the U.S. economy has made the role of accountants and other finance professionals more urgent, especially as non-essential businesses across the country are forced to close and make critical operational decisions. CPAs were particularly in the spotlight last week as the tax-filing deadline was extended to July 15 in response to the crisis.

It is important that CPAs keep abreast of these fast-moving updates, said American Institute of CPAs president and CEO Barry Melancon, recommending the AICPA’s coronavirus online resource center as a good starting point. He also explained that CPAs can currently offer more to clients than just meeting these new deadlines.

“If you think of the makeup of the profession, the knowledge, we are extraordinarily well-positioned,” Melancon told Accounting Today. “It’s way more than complying with the tax deadline, financial reporting. Those things are important, but way bigger is real solid decision-making. Our economy will fight to bounce back; I see an opportunity to do that, a path to do that. … People from every type of organization have the potential for a powerful impact on good decision-making and how to come out of this. It’s probably the greatest opportunity for our profession to affect the economy.”

Beyond financial expertise, accountants might find themselves especially in-demand for their practicality, Melancon predicted.

“I think that we have this incredible obligation and opportunity — not from an opportunistic [standpoint] — but the opportunity to impact a very serious situation in the economy,” Melancon continued. “It’s all about how we are trusted, knowledgeable, ethical people in this profession — those are true statements. Right now, we can be a calming force for clients; if you work for a company, you can be a calming force for good decisions. We can be realists [and] help people work through some difficult decisions.”

Amid this pandemic, both Melancon and CPA.com president and CEO Erik Asgeirsson (pictured) have been in communication with accounting firms and AICPA members, as well as the other organizations comprising a coalition they formed to ask the U.S. government to direct any coronavirus relief funds to small businesses through payroll processors. These conversations have inspired optimism, according to Asgeirsson, who added that firms that have adopted the technology solutions that thought leaders like those at CPA.com have been evangelizing for years are at an advantage.

“We’ve both been talking to a lot of firms, and like everyone, they’re focused on the safety of employees and doing an excellent job, making sure people work remote and take care of their situations,” Asgeirsson shared. “The second thing is a focus on helping clients navigate unprecedented times, to really be set up to operate in this environment. What happened with cloud-enabled solutions was they are able to support businesses and clients wherever they are and are actually operating today. Things have changed [but] we are operating and connected and will be in a position to support clients in these uncharted waters.”

The AICPA and CPA.com are prepared to continue helping CPAs in these unprecedented times, Asgeirsson said.

“Some firms need a little assistance in getting modern platforms up and running, and we continue to provide those services,” he explained. “We’re also aware these firms are knowledge workers and are invested in systems that can support clients, and can play a big role. It’s an otherwise fortunate position to be in, that we can still provide these services. We’ve also seen states declare [CPAs] as essential services.”

As the spread of the coronavirus, and the government and economic response to it, continues to accelerate, preserving connectivity will be critical, according to Melancon and Asgeirsson.

“It’s amazing how fast this is all going,” Asgeirsson observed. “Communication matters.”

The American Institute of CPAs (AICPA) has petitioned President Donald Trump to enact a faster system of payment for small- to medium-sized businesses as the coronavirus pandemic rolls on in the country, stalling the economy, according to reports.

The AICPA was joined by the International Franchise Association and two payroll companies, Paychex and Intuit, in penning the open letter to Trump. The proposition is for the federal government to set up a new centralized system in which SMB payroll processors could funnel finances to businesses to help them keep paying employees.

AICPA President and CEO Barry Melancon said this would be the most efficient way to get payroll processes running and help money get to those that need it, as well as assisting in getting things running again once the pandemic has eased up at some point.

The coalition emphasized that the plan would especially help out businesses that have been forced to lay off workers or close their doors as the crisis continues to unfold and people have to practice social distancing.

However, the funds for this project would depend on the passage of a financial aid and relief measure in Congress, which had not happened as of Tuesday (March 24). Several attempts at such were blocked by Democrats in Congress who said the measures did not go far enough toward protecting workers and instead focused more on corporate interests.

There are more payroll companies looking to join this coalition and voice support, according to officials. The AICPA is prepared to continue responding to Washington’s actions, hoping that whatever Congress decides to do will align with the coalition’s goals.

Erik Asgeirsson, president and CEO of CPA.com, said one reason this could work well is that the system is mostly already in place, as payroll companies know who needs to get paid and how much. All that’s missing, he said, is the centralized hub that would bring it all under the government’s roof.

For the calculation of the Average Monthly Payroll cost under the Paycheck Protection Program (PPP), the Gross Payroll approach should be used for the application, according to the recommendation from the AICPA-led small business funding coalition. This recommendation was developed in conjunction with the National Payroll Reporting Consortium (NPRC). It comes after the additional guidelines Treasury and the Small Business Administration (SBA) issued on Thursday.

For the calculation of the Average Monthly Payroll cost, we recommend that payroll providers and CPAs use Gross Payroll based on 2019 data versus Net Payroll (defined as Gross Payroll less federal withholding and employee FICA). Neither the CARES Act nor the recent guidance instructs the PPP applicant to exclude federal withholding and employee FICA for the 2019 period. The Average Monthly Payroll cost includes Gross Payroll and the other defined PPP payroll cost elements such as health care, etc.

Downloadable Paycheck Protection Program (PPP) Borrower Application Form.

“Treasury and the SBA have acted quickly to generate this small business stimulus. As key stakeholders in the implementation of the PPP relief, we are collectively working to drive consistency in the interpretation of the administration’s guidance. Our goal is to help produce an efficient application process to quickly get the funds in the hands of small businesses and their employees,” said Erik Asgeirsson, president and CEO of CPA.com.

Mark Koziel, CPA, CGMA, the AICPA’s executive vice president of firm services, added, “Based upon statements from members of Congress, it appears that the intent of the PPP was to base the salary calculation on gross wages with no adjustment for federal taxes. This ensures that payroll tax expenses are not passed on to the small businesses in need. In a program of this magnitude, it’s expected that guidance will evolve and terms will be clarified.”

The AICPA also said that its discussions with Treasury, SBA, banks and payroll processors to address these and other issues are ongoing and that it will keep its members, coalition partners and small businesses updated on the efforts to protect Main Street America.

The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with more than 429,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for its members and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives professional competency development to advance the vitality, relevance and quality of the profession