To our colleagues,

Hope you had a great tax season. Our upcoming June 27 CPE Conference has a great grouping of programs. I hope to see you there.

We have a great line up for our Partners’ Network colleagues. The lead off speakers from RegentAtlantic, John Zeltmann and Amanda Lott, will make a presentation that Peter Weitsen and I heard in January and thought it was a great description of Social Security options. They agreed to present it for you, and we believe you will like it as much as we did. Another eye opening speaker is the Managing Director of alliantgroup, an organization that has uncovered over $6 million in tax credits for our clients. Michael Siegel will show you how you can better help your clients by utilizing tax credits. Peter and Frank Boutillette will present signature update programs that are our most popular features. They distill into an hour more info than anyone else can, and our attendees always request we let them speak longer. Our Conference is set up to get the busy practitioner a comprehensive taste of what is being done and can be done in the industry and is guaranteed not to bore you. John Daly will cover NJ Business Tax Issues. He is a staple at our Pre-Tax Season program and by request, he is speaking here. This is not an update, but a rundown of the major NJ business tax issues we all have to deal with. Ed O’Connell, Cathy Bendall and I will present programs covering the issues on which Partners’ Network members have sought our advice. The summer conference is the perfect time to simultaneously cover the issues that affect your clients the most. We work very hard to provide usable, meaningful programs and look forward to seeing many of you on June 27. Don’t miss this program.

The Pre-Tax Season CPE we hold on the first Monday in February crams in five CPE credits with minimal networking opportunities once we start at 5:20. Because of this, we don’t get a chance to talk to many of you and find that a negative to the tight program. However, Peter, Frank and I and the other speakers are available to talk by phone. Don’t hesitate to call us.

I write a blog twice a week on the types of issues that clients ask me about. Go to www.partners-network.com to read the latest blogs and to sign up for automatic notification of new blogs.

Be sure to sign up today for our valuable CPE program on June 27th. You will also receive the handout on a stick drive that will be a valuable reference source you can refer to in the future.

Cordially,

Edward MendlowitzEditor

P.S. We perform many services for CPAs including peer and quality reviews, business valuations, forensic services and audits that you may not be in a position to perform. Please keep us in mind when you are in need of these services. We can also lend a hand to controllers who need assistance on special projects including tax basis conversions to GAAP, tax return preparation and state tax compliance issues.

WithumSmith+Brown, PC

MAY 2013

WITHUMSMITH+BROWN, PCONE SPRING STREETNEW BRUNSWICK, NJ 08901P. 732.828.1614F. 732.828.5156

Contact:Ed Mendlowitzemendlowitz@withum.com

Heather Suddothhsuddoth@withum.com

WithumSmith+Brown, PC Certified Public Accountants and Consultants

w i t h u m . c o m New Jersey. New York. Pennsylvania. Maryland. Florida. Colorado

WithumSmith+Brown,PC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org. For information regarding refund, complaint, and program cancellation policies please contact Heather Suddoth at hsuddoth@withum.com.

Program Level: Intermediate Prerequisites: Must be a CPA in own practice or a Partner/Manager in a firm Advanced Preparation: None Delivery Method: Group-Live

Get Ed’s opinions that are provided to clients on issues they are concerned with. Blog posted twice a week. Visit www.partners-network.com. Log in and sign up for automatic delivery of new postings. After you sign up, you will need to respond to an email to activate the delivery.

Get Frank’s opinions on events affecting hedge funds, mutual funds, broker-dealers and registered investment advisors. Blog posted weekly. Visit www.frankandtothepoint.com. Log in and sign up for automatic delivery of new postings. After you sign up, you will need to respond to an email to activate the delivery.

How to arrange things to simplify your life so that others can easily pick up where you left off.

How to declutter your life, what happens if you did not make proper plans, responsibilities of people managing an estate, protection if you become incapacitated, a dire warning to IRA, 401k and 403b beneficiaries and a priceless gift you can give your children. Includes checklists and sample letters.

Book available at www.Amazon.com and www.bn.com

PARTNERS’ NETWORK ANNUAL CPE PROGRAM

THURSDAY, JUNE 27, 2013 8AM TO 4:30PM THE PALACE AT SOMERSET PARK 333 DAVIDSON AVENUESOMERSET, NJ 08873

8:00–8:30AM Breakfast and Networking

8:30–9:20AM Not Your Grandma’s Social Security StrategiesSpeakers: John Zeltmann, CFA, CFP® and Amanda Lott, CFP®, CRC®, Financial Advisors, RegentAtlantic (MAS)

9:20–10:10AM Special Purpose ReportsSpeaker: Ed O’Connell, CPA/CFF, CFE, Partner, WS+B (A&A)

10:10–10:30AM Networking break

10:30–11:20AM New Jersey Business Tax IssuesSpeaker: John Daly, MST, State Tax Specialist, WS+B National Tax Service Group (TAX)

11:20AM-12:10PM Peter Weitsen’s IRS UpdateSpeaker: Peter Weitsen, CPA/PFS, Partner, WS+B (Tax)

12:10–1:00PM Lunch and networking

1:00–1:50PM Found Money – Hidden Tax Incentives for Small Business Speaker: Michael Siegel, CPA, Managing Director, alliantgroup (Tax)

1:50–2:40PM Accounting & Auditing UpdateSpeaker: Frank Boutillette, CPA/ABV/CGMA, Partner, WS+B (A&A)

2:40–2:50PM Short break

2:50–3:40PM Communicating Review and Audit Procedure Deficiencies to ClientsSpeaker: Cathy Bendall, CPA, PSA, CGMA, Partner, WS+B (A&A)

3:40–4:30PM Assisting Clients with Buy-Sell Agreements Speaker: Edward Mendlowitz, CPA, ABV, PFS, Partner, WS+B (MAS)

$215 for Partners’ Network members. $295 for nonmembers. Purchase conference materials (if you cannot attend) $100. RSVP to Heather Suddoth 732.828.1614 or hsuddoth@withum.com

(8 CPE | 3 A&A, 3 TAX, 2 MAS)

Author, Edward Mendlowitz

JIM IS AN ESSENTIAL PART OF WS+B AS A PARTNER AND DIRECTOR AS WELL AS BEING IN CHARGE OF OUR FIRM’S TECHNOLOGY WHICH HAS BEEN CITED AS BEING IN THE FOREFRONT OF CPA FIRM INNOVATIVE PROCEDURES. HE IS RESPONSIBLE FOR THE 24/7 CONNECTIVITY OF OUR 480 PEOPLE IN 13 OFFICES. HE HAS ALSO BEEN DESIGNATED AS ONE OF THE TOP 100 INFLUENTIAL PEOPLE IN PUBLIC ACCOUNTING BY ACCOUNTING TODAY AND ONE OF THE TOP 25 THOUGHT LEADERS BY CPA PRACTICE ADVISOR. HE IS A FREQUENT SPEAKER AT NJSCPA PROGRAMS AS WELL AS CPA GROUPS NATIONWIDE AND AS A TECHNOLOGY AND OPERATIONS CONSULTANT TO MANY CPA FIRMS.

WHAT IS YOUR ROLE AT WS+B? I have been with WS+B for the last 26 years. I am a director and member of the Firm’s management committee. In addition, my administrative function at WS+B is oversight and vision for our 12 member internal technology team and WS+B internal technologies in general. On day one, every member of our professional staff is provided with a new laptop and a smartphone. The current mobile device of choice is the iPhone 5. Having said that, we have a BYOD (Bring Your Own Device) policy that allows our staff basically to connect any portable or mobile device to our network. Our mobile device management tools allow us to control such devices and remotely wipe client-specific information from those devices in the event of loss or theft. We bring a tremendous amount of technology resources to our staff, including digital file storage, web-based tax preparation, bi-directional portal capabilities, secure file transfer, automated scan and populate technology in our tax practice and scanners on every desktop. Having been around the country, meeting with many firms and guiding them through their own technology initiatives, I can tell you, our group most definitely leads the pack.

HOW DID YOU GET INVOLVED WITH THE TECHNOLOGY? I’ve always had a passion for technology. That passion started in high school and then college where I would create video games using basic programming to run on early Tandy TRS-80s. Today, parents complain about their kids playing video games. In my early days, my parents complained about me always spending time on the computer. I guess it’s my obsessive personality. Once I started at WS+B, upon graduating from Kean, I was taken back by the amount of manual processes involved in the profession. Before long I automated the manual 13 column trial balance analysis sheets by migrating them onto Symphony, I deployed our first trial balance application on an early IBM PC and then eventually set up everyone in Red Bank on early Gateway PC’s. Once that was done, I installed our very first email program called Oxford Email. Our network slowly grew by connecting Princeton to form the beginnings of our wide-area network, and then Oxford became our first tool for interoffice email. We’ve slowly automated nearly every aspect of our operations and tested and deployed new and emerging technologies.

WHAT ROLE DO YOU PERFORM WITH CLIENTS? DO YOU HAVE ANY SPECIALTY? At WS+B I am a niche leader for our technology client base. In that role I oversee a significant amount of the accounting and tax engagements for companies connected in some way, shape or form to the technology industry. Also, I still have a number of non-technology clients. Those clients are clients that I have been working on since starting my career at WS+B.

WHAT ARE SOME CURRENT PROJECTS YOU ARE WORKING ON? With our huge focus on the cloud, we are looking to move our remaining in-house programs and data to the cloud, We are currently investigating alternatives and options with off-site data centers. In addition, we continue to strive to take our existing scan and populate technology to the next level. For our 2011 tax season, we processed about 82% of all of our returns through this technology. I believe for 2012 we’ll be able to continue to expand those results and take our utilization of this tool to the next level. Our utilization is financially rewarding, as we’re able to trim about an hour off of preparation time for every 1040 processed through this technology.

WHAT DO YOU ENVISION FOR THE FUTURE OF IT? More continued migration to the cloud. I honestly believe the days of desktops and laptops, as we know them, are numbered. Technology will continue to get more “consumerized” with devices straddling both work and home. The end result is lighter and less powerful devices (such as tablets and pads) that primarily access data and resources via an internet connection.

JIM BOURKE CPA, CITP, CFF, CGMA, PARTNER

INTERVIEW WITH

WHAT DOES A TYPICAL WEEK LOOK LIKE FOR YOU? I UNDERSTAND THAT YOU TRAVEL ACROSS THE COUNTRY AND PRESENT TO CPA GROUPS. Typical? There is no typical week. What is typical is my time on the road. I spend a significant amount of time on the road and without our current technologies in place, there is no way I would be able to manage my client load and do the speaking circuit across the country. Also, I have a huge passion for the profession, and my involvement on the AICPA Board of Directors has introduced me to so many opportunities, including speaking engagements around the country and the world on everything professionally and technology related.

DO YOU HAVE ANY HOBBIES BESIDES IT? Absolutely. I am an obsessive baseball card collector and have every Topps regular season card from 1952 to present, except for card #311 from 1952, Mickey Mantle’s rookie card! In addition, my son Brandon and I have been visiting the MLB All Star Game and Home Run Derby for the last ten years. When it comes to family, my wife and I do a surprise vacation every year for our kids. We really screw with them, simply telling them what and how much to pack. They have no clue where we are going until we are at the airport, and even then they sometimes don’t know as we end up making connecting flights. I am also a certified soccer coach and along with my wife Jody, we coach my daughter’s U-12 National 1 team.

HAVE YOU READ ANY RECENT BOOKS YOU CAN RECOMMEND? Since I spend lots of time in airports and in planes, I do read quite a bit (when I am not on my computer). The last book that I just finished up was Made to Stick: Why Some Ideas Survive and Others Die. This book has lots of great ideas on ways to get others to buy into your projects and initiatives. In fact, I created an Ignite presentation around this concept. Google “Ignite Presentation” and you’ll see what I am talking about. I love Ignite presentations, and they are a good way of getting people used to speaking in front of groups and a good way for everyone to be on the same playing field.

HOW LONG HAVE YOU BEEN WITH WS+B? IS THIS YOUR FIRST JOB? 26 years in February 2013. Besides my job at Shop-Rite, while in college, yes, WS+B is it!

YOU HAVE BEEN VERY ACTIVE IN THE NJSCPA AND AICPA (SERVING AS PRESIDENT AND PRESENTLY ON THE AICPA COUNCIL AND BOARD OF DIRECTORS AS WELL AS PAST CHAIRMAN OF THE CITP CREDENTIAL COMMITTEE). YOU ARE ALSO CHAIR OF THIS YEAR’S AICPA TECH+CONFERENCE. WHAT BENEFITS DO YOU SEE FOR CPAS BEING ACTIVE IN THEIR PROFESSIONAL SOCIETIES? I would encourage every professional to get out of the office and experience some level of involvement in either their state society or AICPA. My involvement has been very professionally and personally rewarding and exposed me to some of the best, industry-focused, professionals in the industry. Today, if I come across any technology issue, I know exactly the best person to call in the country. In addition, I also act as a sounding board for other professionals throughout the country and always answer their calls or emails when looking for help or guidance.

WHAT ADVICE CAN YOU GIVE TO COLLEAGUES THAT ARE MEMBERS OF THE PARTNERS’ NETWORK?We are here to help you. Call and reach out to us. It is a big world out there, and we are trying to make it a little smaller for our fellow practitioners.

IF YOU WEREN’T A CPA, WHAT DO YOU THINK YOU WOULD BE DOING INSTEAD? If I were not a CPA, I would definitely have done something technology related. More specifically, I probably would have taken my passion for creating computer games to the next level and entered that field in some way.

INTERVIEW WITH JIM BOURKE (CONTINUED FROM PAGE 3)

WS+B’S 2013 STATE OF THE FIRM VIDEO

http://www.youtube.com/watch?v=1EymCFOP14Q

Bill Hagaman, CEO, Partner

little GAAP IS ALMOST HERE

For the last several years, it has been much debated whether there should be a LITTLE GAAP for the smaller privately held businesses. The Financial Accounting Standards Board (FASB) issues accounting pronouncements (GAAP) that all companies must follow. The FASB is funded by publicly held companies, and thus the focus is on ensuring the 17,000 or so publicly held companies report their financial statements in the same fashion. Unfortunately, some of these pronouncements are overkill for the smaller privately held businesses.

The AICPA, several years ago, formed a panel (The Blue Ribbon Panel) to examine whether there could be a viable alternative to GAAP for smaller privately held companies. What came out of this was an exposure draft

titled, Proposed Financial Reporting Framework for Small-and Medium- Sized Entities (“FRF for SMEs”) issued on November 1, 2012. The exposure draft was open for comment through January 30, 2013. I will summarize what this exposure draft revealed.

The FRF for SMEs is a self-contained, special purpose framework intended for use by privately-held small- to medium-sized entities (SMEs) in preparing their financial statements. It is to be less complicated and less costly while giving the users of these financial statements a reliable framework that has undergone public comment and professional scrutiny.

Differences between FRF for SMEs and GAAP

Does not make use, in general, of fair value accounting and uses the historical cost as its measurement basis, including goodwill, with the exception of equity securities held for sale Does not require complicated accounting for derivatives, hedging activities or stock compensation Provides more flexibility in accounting for income taxes and consolidations Eliminates the concepts of other comprehensive income (OCI), generally applicable to entities with available-for-sale securities and foreign currency translationEliminates consolidation of variable interest entities (VIEs) Simplifies the disclosure requirements required under U.S. GAAP, including pension disclosures

If you have any questions or need assistance with an engagement, please reach out to the Partners’ Network.

Frank BoutilletteCPA/ABV/CGMA, Partner

CPAS ARE LIKE EVERYONE ELSE. THEY NEED TO PLAN AND PROVIDE FOR THEIR FUTURE WEALTH AND FINANCIAL SECURITY. THIS INCLUDES ACCUMULATING A SUFFICIENT NEST EGG TO PROVIDE ADEQUATE CASH FLOW WHEN YOU ARE NO LONGER ACTIVE. RETIREMENT NOW LASTS FOR MANY PEOPLE ALMOST AS LONG AS THE PERIOD SPENT WORKING AND YOU NEED TO BE AWARE THAT YOU ARE RESPONSIBLE FOR YOUR OWN SECURITY AND ULTIMATE COMFORT.

At the end of the day, you cannot wake up one day and say what you should have done. Accumulate as much as you can in tax deferred accounts. Make the payments into those accounts the same time you take your pay checks. If you can’t make the deposit, then increase your fees so you could. That is your minimum earnings. Without those payments, you are losing money. If you cannot make a living from your practice, then get a job – maybe you are not cut out to be a business person, but don’t neglect or rationalize not making the payment.

A comment: You may feel you will never want to retire – that’s fine – but financially you must be in the position to retire if you want to, or have to.

Another comment: Occasionally we know or hear of someone of retirement age that cannot retire and must keep working. What is your reaction to their situation? Do you want that to be a reaction to you?

DON’T BE STUPID!

CREATING WEALTH AND FINANCIAL SECURITY FOR OURSELVES

PETER’S TAXING ISSUESOUR FIRM TRADITIONALLY HAS A BOWLING PARTY THE FRIDAY AFTER MARCH 15TH. IT IS ALWAYS A GREAT AFTERNOON. BACK IN THE OFFICE THE FOLLOWING MONDAY, I ASKED A FEW PARTICIPANTS IF THEY UNDERSTOOD HOW THE SCORING WORKED – AND THEY DID NOT.

They also were not aware of the strategy of hitting the 1-3 (or 1-2 for lefties) pocket to get strikes. That got me thinking about their understanding of tax return preparation.

The way I see it, there is a method and strategy to preparing tax returns and if understood, would likely result in a better job. Tax preparation, like anything else involves knowledge, an art, a strategy, understanding and the application and integration of all these qualities to have a satisfactory result.

Knowledge needs learning, which is done in school courses on the topic. But it also needs an interest in continuing to learn afterwards. Some of the learning is imposed on us by CPE requirements, but the interest needs to extend beyond that with a self-imposed determination to do a great job and an internal anger when you fall short. That is an extra that we need to look for in our staff.

JUNE 2012 JUNE 2011 JUNE 2010Financial Dashboards for Your Clients Personal Financial Statements 10 Standards of Business Valuations, Their

Differences and When They Apply

12 Step Personal Financial Planning for Clients Inherited IRAs, 401ks and Pension Plans Peter Weitsen’s IRS Update

Peter Weitsen’s IRS Update Advising Clients on Business, Property and Casualty Insurance

Preparing Construction Contractor Jobs in Progress Schedules and Methods of Allocating Overhead

State Residency and Domicile Issues Peter Weitsen’s IRS Update Tax Strategies After the Returns Are Filed; Defending Audits and Preventing Criminal Investigations

Eight Ways to Value the Same Business Assisting Clients With a Business Plan’s Financial Projections

When Accruals Are Deductible; 263A Flow Charts; Stepped Rent Arrangements; and Deducting Startup and Organization Costs

Performing a Due Diligence Review Tax Aspects of a Divorce Traps to Avoid in Compilations

Financial Statement Mistakes to Avoid Accounting and Auditing Update Advising a Client Who Becomes an Executor

Advising Clients on Succession Planning Auditing a Not-for-Profit Organization Adding Value to the Standard Audit Procedures

PARTNERS’ NETWORK PAST ANNUAL CPE PROGRAMSFOLLOWING ARE THE TOPICS OF THE LAST THREE YEAR’S PN CPE PROGRAMS. IF YOU WANT ANY OF THE HANDOUTS, EMAIL HEATHER LETTING HER KNOW WHICH ONES.

The art is the creative ability to match what is being done with what was done previously (not necessarily for that client). Experience helps, but an understanding of the purpose and use of the end product will help even more. We need staff that will look at the final product and ask how we could help the client use this knowledge to better manage their finances – which taxes are one part of. Probably that is why so many tax people become financial planners.

A strategy is hard to define when talking about it but easy to see when you are planning how you will get the job done. Strategies involve the myriad functions of getting the information, assembling and organizing it, preparing and reviewing the return with a minimum of “touches,” communicating the results to the client and getting paid for the work we did and value we added.

Understanding is the realization that preparing tax returns are not something that is done so an item can be marked off a checklist of clients’ names. It is working on something that the client will treat as the single most important thing in the world for them for the few moments they will look it over before they sign off on it. Understanding comes from seeing how it can be used as a road map to a client’s complete financial range of affairs, investing and spending patterns and risk tolerance. It also gives insights into personal issues such as how they feel about charity and whether they are greatly in debt and possibly the reasons for it.

The successful accountants put it all together. We do! Do you?

HOW DO THINGS WORK?

Peter A. Weitsen, CPA/PFS Partner

WS+B’S PARTNERS’ NETWORK CPE RESERVATION & MEMBERSHIP

Attend WS+B Partners’ Network Annual CPE Program @ $215.00

Additional person from my firm @ $215.00

Not a Partners’ Network member @ $295.00

I cannot attend, but please send me the materials @ $100.00

Sign me up as a Partners’ Network member @ $175.00

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WITHUMSMITH+BROWN, PCONE SPRING STREETNEW BRUNSWICK, NJ 08901P. 732.828.1614 F. 732.828.5156hsuddoth@withum.com

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Why should my firm join The Partners’ Network?•To broaden your firm’s services and expertise•To help you build your business for growth and

profitability•To obtain answers to challenging audit and tax

matters with a phone call•To get ideas and tips on how to better manage your

practice

What does The Partners’ Network offer a firm like mine? Again, many answers:

•Free Power Breakfast covering timely topics.•Discounts to the annual CPE Conference in June.• Invitation to the Pre-Tax Season CPE program.•Answers to your questions on tax, accounting,

auditing, or practice management at no charge. Just pick up the phone and call, or send one of us an e-mail.

•Contacts with peer CPA practitioners, and opportunities for exchanging ideas, resources, and information with your colleagues.

How do I join? Membership is $175 per year ($500 for firms of 100+). Phone or e-mail Heather with your credit card information, or put a check and business card in the mail. It’s as easy as that. So give Heather a call today at 732.828.1614, or send an e-mail, hsuddoth@withum.com. We look forward to hearing from you soon.

THE PARTNERS’ NETWORK

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WithumSmith+Brown, PCCertified Public Accountants and Consultants

w i t h u m . c o m

One Spring Street

New Brunswick, NJ 08901

The Partners’ Network Newsletter is published by WithumSmith+Brown, PC, Certified Public Accountants and Consultants. The information contained in this publication is for informational purposes and should not be acted upon without professional advice.

Partners’ Network ANNUAL CPE CONFERENCE | JUNE 27DETAILS INSIDE

Objectively determining the value of business enterprises and assets.

Call us for more information.

Ed Mendlowitz, CPA/ABV/CFF, Partner732.964.9329

Accredited in Business Valuation (ABV) by the American Institute of Certified Public Accountants.

• Tax basis conversions to GAAP• Sales tax compliance issues• Corporate state tax preparation• Income taxes for foreigners working in U.S.

and U.S. employees working abroad• Transfer tax studies• Internal auditing • M&A due diligence

Ed Mendlowitz, CPA/ABV/CFF, PartnerFrank R. Boutillette, CPA/ABV, Partner212.829.3238