CFO Series: Minding the GAAP

Overview

All times are listed as Eastern Standard Time.

CASE STUDY – This presentation focuses on four key roles that every financial leader shares: Staying abreast and aware of the myriad changes in GAAP accounting, the impact on the balance sheet, correctly financing the organization, and properly paying state and local taxes. We must be vigilant and current. Many seasoned executives do not properly analyze the lease-versus-buy decision. GAAP is ever-changing. What are the issues that will impact our balance sheet? The spotlight is to enhance our financial skills and accounting. Accounting is always moving forward, just as we should. Otherwise, we may be left behind.

This course qualifies for 4.00 hours of A&A credit.

Module 1: Deciphering Balance Sheet Accounting Issues - 2.00 hours of A&A Credit We mostly focus on the income statement, but what about other accounting concerns? This seminar discusses multiple common balance sheet issues, both on the books and off, that have an impact on our stakeholders and the value of the organization. Using practical analysis and case discussions, we highlight several key tools in understanding and communicating the importance of the cornerstone of accounting: The balance sheet. We must understand the real drivers of accounting issues to ensure that the balance sheet will be exemplary.

Module 2: Lease or Buy, Debt or Equity: The Financing Decision, Theory and Practice Is there a perfect mix of financing that we should aspire to achieve? What does financial theory tell us we should do? What is the cost of our financing decisions? Should we lease an asset or buy it outright? How do we analyze this decision? How can we survive financial distress? These are all topics that every enterprise faces. In this seminar we will look at theory and practice to help resolve the dilemmas. If you are involved with financing the organization, this seminar is essential.

Module 3: Dealing with Ever Changing Accounting Standards and Other Demands - 2.00 hours of A&A Credit GAAP is changing at an increasing rate. Financial leaders are faced with the dual challenge of navigating evolving accounting standards while strategically guiding their organizations toward sustainable growth and profitability. What are the newer accounting changes that will impact professional accounting? This seminar will equip finance professionals with the critical skills and practical insights needed to effectively manage the complexities of ever-changing accounting standards and upgrade your essential strategic planning skills. Strategies that do not keep pace with the market are doomed to fail. If we do not keep up, our successor will.

Module 4: SALT for CFOs: What You Don’t Know and Should Know The changes to state and local taxation are numerous and profound. What are the major changes to state and local taxes (“SALT”) beyond Wayfair? Be aware of the new, creative methods used to raise taxes. Why does every state need more revenue? How have the rules changed? What information, accounting systems and software could be helpful? Virtually every organization may not be SALT compliant, the risk is real. For leaders who are not tax focused, you at least need to understand the risks of noncompliance and to learn more about minimizing those risks. Avoid penalties!

Highlights

Module 1: Deciphering Balance Sheet Accounting Issues

• Typical accounting issues that impact the balance sheet
• Where are the 'hidden' issues in unrecorded liabilities
• Why and how most balance sheets are not correct - What are unrecorded assets and why do they matter? - Suggestions to improve balance sheets
• Identification of and resolution of balance sheet challenges and changes
• Communicating with your audience and stakeholders

  Module 2: Lease or Buy, Debt or Equity: The Financing Decision, Theory and Practice

• What is the cost of capital?
• How does the mix of debt versus equity affect the cost of capital?
• What is the right balance of debt to equity and why does it vary?
• Modigliani and Miller's Nobel prize-winning theory
• How do risks affect my choices?
• Risk aversion choices amongst providers of finance
• How will capital structure affect me in times of financial distress?
• Buying assets versus leasing them - what needs to be considered?
• Evaluating a lease versus buy decision and why so many get the analysis wrong

  Module 3: Dealing with Ever Changing Accounting Standards and Other Demands

• Understanding the modern finance and accounting organization chart
• GAAP accounting changes o Why so many changes o The speed of change and complexity o Accepting reality
• Recognizing and fixing the top five accounting problems and errors o Revenue o Leases o Management estimates
• Why is strategy necessary? o What is strategy? - The two keys to strategy o Balancing strategy with our day-to-day roles

  Module 4: SALT for CFOs: What You Don’t Know and Should Know

• Why do local jurisdictions, e.g., states, need more tax revenue?
• The creative new methods to raise taxes o Including new taxes, rates, limits, exceptions, boundaries, etc. o Exporting the tax burden o Employee vs. independent contractors o Mobile workforce issues
• The myriad, novel schemes to tax o Fees and licensing matters
• Leading SALT software providers o Common implementation problems o States' expectations that technology makes compliance simple for the taxpayer o Do the costs of compliance outstrip the taxes due?
• Officer liability for taxes - it is a real thing!
• How variable is SALT taxation? o Examples of the differences o Entity classification considerations in the SALT equation o Variability by state and each county within each state
• The benefit/necessity of an annual review
• Risk reduction strategies

Prerequisites

Preferably at least six (6) months of professional financial statement analysis experience ,Clear understanding of discounted cash flow analysis and net present value

Designed For

This seminar is ideal for financial leaders, financial managers, board members, CFOs, those who aspire to become a CFO, finance executives, accounting professionals, CPAs, controllers, accountants, advisors, and consultants; CPAs in public practice and CPAs in industry, and decision-makers seeking to enhance their financial acumen and excel as a leader in a world where accounting is changing.

Objectives

• This seminar will teach how to appreciate the paramount need for an excellent balance sheet and to emphasize the critical nature of using both a) practical analysis and b) common sense in our application and approach to balance sheet accounting.
• Learn how to determine the optimum mix of debt and equity as well as how to properly evaluate the decision to lease an asset and understand the complexity of balancing debt versus equity.
• Understand the need for GAAP accounting to continuously improve and grasp the need to be directly involved in strategic planning and its value.
• Recognize some of the numerous new methods that individual tax jurisdictions are employing to raise tax revenue and the impact on cross border (interstate) operations.
• Be aware of the changes in SALT taxation so your employer/clients can be in compliance.

Notice

All materials will be available to download in advance and participants will receive an email two days prior to the course date. Materials will also be posted in the “My CPE” section of the NESCPA website.