VP of Corporate Strategy & Product Manage- ment, Paychex
In today’s digital world, accountants rely on multiple platforms to serve their clients’ diverse needs. From cloud-based solutions that track expenses to account reconciliation, it’s essential to ensure the integrity of data across platforms and solutions.
The good news is, technology is making that task easier than ever before. Through a network of APIs, cloud solutions allow for defined communication between platforms, delivering real-time data integration.
This fall, accountants using both Paychex and Sage Intacct saw a big boost in productivity when seamless, real-time integration from the Paychex General Ledger Service (GLS) to Sage Intacct was introduced.
Helping to save time and reduce errors, this real-time integration provides accountants and their clients the critical information and data insights they need, when they need it, delivering data directly from the Paychex GLS to Sage Intacct.
Users can easily sync payroll and accounting data, and post payroll entries to their Sage Intacct accounting package, in just seconds. With automatic general ledger posting to Intacct dimensions as soon as payroll is released, data integrity is ensured by easily identifying unlinked categories and rapidly transmitting data from Paychex to Sage Intacct.
This is just one example of Paychex’s commitment to delivering technology solutions that meet the needs of accountants. With an eye toward the continuously evolving future, we’re positioning our services and solutions to deliver greater value than ever before to the accounting community.
Data automation is here to stay. And with it comes great opportunity. From enhanced productivity to strengthened client relationships, data integration is a true growth driver for the accounting industry.
President & CEO, CPA.com
After I gave my keynote on the final day of the Digital CPA Conference last week, I had a chance to take a moment and look out at the crowd in the San Francisco Marriott Marquis conference center. And what hit home to me was just how far we’ve come as a community in the past five years.
The first Digital CPA was scheduled to be held Oct. 28-30, 2012, in a hotel with an impressive all-glass lobby just outside of Washington, D.C. Some of you may remember those dates as the East Coast landfall for Hurricane Sandy. We postponed the conference until December, and were grateful most people tore up their busy schedules and showed up. We had a tight-knit group from the beginning.
Now it’s 2017, and many of the practitioners at this year’s event have played a key role in the fast growth of virtual CFO services and the reinvention of client accounting services. And many of these same lessons learned are now being applied to new opportunities emerging in audit and tax. We’re poised for big things in the profession, and Digital CPA – with its energy, enthusiasm and vibrant setting – was a great reflection of that potential.
Here’s some of my takeaways from the conference:
We have a big tent, and it’s getting bigger all the time. We had 430 people at Digital CPA this year, and another 40 connecting remotely. We had more than two dozen people flying in from five different countries outside of the United States, so the strength of the programming, like the challenges and opportunities it addresses, extends across many borders. That’s a lot of momentum, and I want to thank all of you who have helped build this community from the ground up.
The pace of change offers great opportunity. Technology is rapidly transforming the practice of accounting, and all of the discussions at the event made me feel even stronger that there has never been a better opportunity for CPA firms to grow and thrive.
Complementary skills are going to be more important than ever going forward. AICPA Chairman Kimberly Ellison-Taylor talked about this during my Digital CPA keynote, and it was underscored in conference sessions. Technical skills and good judgment are never going to go out of style, but CPAs are going to need expertise in communications, technology and marketing, among other areas, if they’re going to successfully establish high-value advisory practices.
Mistakes and failure aren’t fatal – they’re prerequisites to growth and innovation. This was one of the lessons from Netflix co-founder Marc Randolph’s fantastic presentation. Not everything works out. As a profession, we’re devoted to service quality, and that’s always the goal. But we can’t be afraid to move fast to try something, and move on if it’s clear an approach isn’t working.
Education will move us forward. Blockchain will bring huge changes to the audit, in ways that aren’t fully clear yet. Digital CPA attendees have a high curiosity about this area. This is why we teamed up with the Wall Street Blockchain Alliance this past fall, and why we’re committed to providing context and insight to CPAs on this topic. There’s a whole new world forming in finance and accounting, thanks to blockchain, artificial intelligence, machine learning and data analytics. At CPA.com, it’s our mission to provide thought leadership and guidance for firms navigating these changes. We’ll be here for you.
And if you missed this year’s conference but are curious about next year, check back at digitalcpa.com for updates. We’ll be in Washington, D.C. again from Dec. 3-5, 2018.
VP of Risk, Compli- ance, & Data Analytics, Paychex
In 2016, Millennials became the largest generational group in the American workforce. As with every generation, their experience in the workforce and what they want out of their jobs is unique and will continue to evolve as they grow in their careers. For firms looking to attract Millennial talent, it’s important to understand current Millennial workforce trends. A new report by Paychex takes a deep dive into Millennial wages, geographic distribution, and industry preferences, analyzing their current status, growth rates, and what this all means for businesses trying to attract, retain, and grow talent in this increasingly important employee group.
Here is a snapshot of Millennials in the workforce, and, more specifically, in the Professional and Business Services industry, today:
Those facts can keep your firm competitive when it comes to potential salary requirements for Millennial candidates, but once you start the recruitment process, there are a few additional factors to consider. First, be proactive and effective in your recruitment effort. Millennials don’t like to drag out their job decisions. When conducting the interview, really listen to what the Millennial applicant is looking for in a workplace. While you don’t need to change your entire business model to adapt to Millennial employees, there are perks – flexible work hours, work from home/telecommuting options, casual dress days, etc. – that can make the difference to Millennial candidates in choosing a firm and remaining content and engaged there.
Once the employee is hired, offer meaningful work opportunities and foster connections. Millennials seek to be effective and impactful in their roles. As the job allows, let them work on projects that they are passionate about that also impact results. Along the same lines, provide Millennials with opportunities for development, whether a special project, exposure to other departments, or classes/training outside of the workplace. Ask them early on about their career aspirations, develop a plan to help them get there, and regularly monitor progress toward those milestones.
Each generation brings unique energy, ideas, and expectations to the workforce. A lack of understanding of the factors impacting a generational employee group can cause you to lose out on talented candidates.
Director of Product Manage- ment at Paychex, Inc
As retirement readiness becomes a growing concern for today’s workforce, retirement plans, including 401(k)s, are an increasingly important offering when it comes to attracting and retaining top talent. In a recent survey by Paychex, small business owners reported minimizing turnover as the most important reason (23%) for offering retirement benefits, followed closely by the individual need for the benefit (20%). Yet many small businesses do not offer 401(k) plans to their employees or themselves.
There are several common myths around retirement plans, but as an accountant, you can help your clients understand their value and how they can build upon business success. Here’s the truth about eight common misconceptions that prevent small businesses from creating retirement plans:
Myth #1: Offering a 401(k) plan is too expensive.
Fact #1: The tax benefits from retirement plans help offset the cost. Tax incentives for new plans can be as high as $500 a year for three years – that’s $1,500. Furthermore, business owners can deduct 401(k) expenses and contributions, such as administrative fees, employer matching or profit sharing, on business taxes.
Myth #2: My company is too small to offer a 401(k) plan.
Fact #2: Retirement plans exist for all business sizes, including sole proprietorships – in fact, the majority of the 77,000 retirement plans that Paychex manages belong to small businesses. Business owners can start small with a plan that can grow with the business.
Myth #3: Employees can’t afford a 401(k) plan.
Fact #3: It doesn’t take much to get started. Say an employee spends $1.64 per day on a small cup of coffee, amounting to $18,000 over 30 years. That same $1.64 per day in 401(k) contributions can amount to $60,644 over 30 years. That’s the magic of compounding interest!
Myth #4: Employees aren’t interested in a 401(k).
Fact #4: According to the Federal Reserve Board’s Report on the Economic Well-Being of U.S. Households, nearly one-third of Americans have no retirement savings, but a study by MetLife found that 64 percent of employees said that a retirement plan is critical or very important. Employees are interested in solutions to help secure their families’ future and their own.
Myth #5: An IRA is enough.
Fact #5: A 401(k) plan has many advantages compared to a SIMPLE IRA. The maximum annual salary deferral is higher for 401(k) plans than that of a SIMPLE IRA and the 401(k) plan catch-up contribution over the age of 50 is double that of a SIMPLE IRA. 401(k) plans also feature profit sharing, loan availabilities, and Roth option opportunities that SIMPLE IRAs do not.
Myth #6: Matching is required.
Fact #6: Matching is not required with a 401(k) plan as it is with a SIMPLE IRA; however, the employer has the option to add matching at any time. Not only does matching help maximize the employer’s personal contributions, matching contributions are generally tax deductible
Myth #7: If “My business is my nest egg” or “I don’t plan to retire” then I don’t need a 401(k).
Fact #7: You can’t predict the future, but you can plan for it. Expecting the best and planning for the worst is the safest option, as the economy, consumer demand, health, and family needs can change at any time.
Myth #8: 401(k)s are complicated to set up, choose, and maintain.
Fact #8: Partnering with a reputable provider eases your administrative burden and can provide investment help.
Paychex ranks as the largest recordkeeper by total number of defined contribution plans, according to a recent survey by PLANSPONSOR magazine, a national publication dedicated to the pension and retirement industry. Serving 77,000 plans, Paychex has earned this honor for seven consecutive years. Paychex helps with plan design and onboarding, integrating payroll and retirement systems into the plan to ease administration; it also offers fiduciary service in partnership with Mesirow Financial, GuidedChoice, LPL Financial, and Wilshire Associates, as well as custodial and trustee services, such as plan administration, regulations, and participant best interests information.
Client-accountant discussions around employer-sponsored retirement benefits and the misconceptions above can provide a natural extension to valuable conversations around the business owner’s financial plan, offering yet another opportunity to enhance your role as trusted advisor, particularly as ongoing legislative uncertainties related to benefit offering regulations have made planning for the future more necessary than ever.
Paul Davidson is director of product management at Paychex, a leading provider of integrated human capital management solutions for payroll, HR, retirement, and insurance services.
Director of Professional Development & Community, CPA.com
I love Audible! This year I have been able to consume so many more books while doing yard work and running (which I don’t love). Currently I am reading, “On Fire: 7 Choices to ignite a radically inspired life” by John O’Leary, bestselling author and keynote speaker for Digital CPA 2017. As I was listening to him narrate his book, I was struck by how similar one of his lessons was to that of John Engels, leadership coach, who combines family systems knowledge with the science of evolutionary leadership.
At Digital CPA Conference 2016, John Engels challenged us all by asking, “Why do you want to keep others from discomfort?” His point being, we learn from challenges and failures, but we try to shield colleagues, friends and family from it. While running, I listened to John O’Leary retell how his mother refused to help him eat his dinner upon returning from a four month stay in the hospital due to burning 100% of his body at age nine. He had lost his fingers, he was still heavily bandaged and yet when his sister tried to help feed him she was ordered to put down the fork. At nine years old, John’s mother was challenging him to commit to a mindset to solve this problem and all the others he was about to face.
Think of the discomfort in that situation. Any parent hates to see their child in pain, frustrated and suffering. Here the child is hungry, frustrated and probably scared; he couldn’t even feed himself. Yet, mother and son prevailed. O’Leary’s mom knew he was going to be confronted with many more obstacles in his life and he needed to find ways to succeed from the start. John did figure out how to feed himself that night and has grown to have a full and successful life.
This poignant example, is a reminder of the bravery it takes to lead others, and own your own leadership. We each must find our role in any situation.
It comes back to accountability. We can’t look to our manager, mentor, or parent to fix the issues. They play a part in guidance and instruction, but we are responsible for developing our own problem solving and leadership skills. Look back in your career and find a pivotal point; what contributed to your success or failure? What did you learn from it?