CPA.com and Confirmation.com have launched RIVIO Clearinghouse, a secure, cloud-based platform for the exchange of CPA source-validated financial documents.

RIVIO—an acronym for Repository of Intelligent Validated Inputs and Outputs—was built for private companies, which lack a central repository for financial information like the Securities and Exchange Commission’s EDGAR system for public companies. Bankers, shareholders and investors can deliver financial documents like audited financial statements through RIVIO, which was built with the same rigorously audited encryption and IT architecture that supports secure online audit confirmation platform Confirmation.com.

CPA.com provides validation that a financial document has been uploaded by a licensed CPA firm and the system prevents companies from changing data once uploaded. Companies have control over who can view information and are also able to recall documents, so that if a financial statement or tax return is withdrawn, RIVIO notifies anyone who has downloaded the document it is no longer the recent version.

CPA.com and Confirmation.com have been piloting the platform with large and midsized accounting firms, banks and private equity firms over the last year. During that process, participating companies have appreciated the clearinghouse’s ability to prevent fraudulent activities like the altering of financial documents or Photoshopping firm letterhead.

“One group that really seems to be overly excited are private equity and venture capital firms,” explained Brian Fox, a CPA and president and founder of Confirmation.com. “They see it as an obvious tool to request financial statements through when investing millions of dollars in a business.” Those companies also tend to be on the bleeding edge of technology, Fox said, with one user describing RIVIO as “effectively like the last mile.” With everything else automated, the executive viewed secure file sharing as the last mile in automated, collaborative tools.

RIVIO is intended to serve a range of firm sizes, from sole practitioners to large firms, with the basic service free for those users that would be, for example, conducting a few audits a year, and the ability to scale up to the business level for $499 per year, professional level for $999 per year, and enterprise level providing unlimited projects (per share) at a price available to firms upon request.

Bankers and investors “want source documents, in today’s digital world,” said Erik Asgeirsson, president and CEO of CPA.com. “They are expecting authenticated sources of data and are excited [to use RIVIO] as a primary source for financial statements, but also to use it for the IRS. Today, with the tax transcript service, you have to go out and ask for a tax transcript from the IRS, and the IRS does not follow up if there are amended returns—our system has that capability.”

RIVIO’s cloud-based platform also provides anytime, anywhere access to the financial information and a “key distinguishing piece, in a paper world,” according to Fox, of signature protection.

“The auditor has no way to protect the signature… RIVIO gives auditors the full ability control their signature, have access to the signature, and for RIVIO to contact third parties [like investors and banks] on their behalf” if financial fraud has been committed.

One question CPA.com and Confirmation.com have encountered since unveiling RIVIO is how it differs from firm portals. The platform “complements existing portals, it doesn’t compete,” Asgeirsson explained. “Firm portals have a different purpose, for firms to collaborate on work products, client audit information, back and forth, and tax information. That is not what this system is about, but financial documents and sharing them in a secure, validated fashion, with the key users.” Soon, the RIVIO Clearinghouse can be integrated into these portals.

Fox estimates about half of the more than 10 firms involved in the pilot process of RIVIO had stories of financial fraud, which, along with various other fraud cases he and Asgeirsson have explored, have proven the need for RIVIO.

“There has been continuing reinforcement for the need for this for the private company market in the U.S.,” Asgeirsson explained. “We’ve brought to light some of the fraud that has occurred due to companies putting out fraudulent financial statement documents to investors.”

More information about RIVIO is available here.

Greetings from App Watch headquarters, where over the past week we heard about a new financial document clearinghouse from CPA.com; new fraud detecting capabilities from Incisive; and some international language and integration functions from FieldAware.

To be fair, this column is not out to break any news nor regurgitate press releases from the vendor community. App Watch is, however, a weekly snapshot of product vendor and service provider news as it pertains or is of potential interest to accounting professionals and their clients. We also provide a bit of additional insight into what the news means, or could mean, to you and your clients.

Comfy? Ok, let’s go...

News: CPA.com Unveils Financial Information Exchange for Private Companies

CPA.com, a business subsidiary of the AICPA, has partnered with Confirmation.com to officially launch the RIVIO (Repository of Intelligent Validated Inputs and Outputs) Clearinghouse, which assists with CPA source-validated financial documents such as audited financial statements to bankers, shareholders and other investors. RIVIO makes documents available through a secure, cloud-based platform that offers comparatively stronger fraud prevention and more sophisticated controls than existing delivery methods. The product also acts similarly to EDGAR for public companies, creating a secure, central repository for private company financial information. The RIVIO Clearinghouse is designed to validate that a financial document has been uploaded by a licensed CPA firm; allow companies control over who can view the information, so financial data remains private; and protect private company information with encryption and an IT architecture tested by security audits. The clearinghouse does not replace or compete with firm or bank portals, since it was designed specifically for transferring information between three distinct user groups with features relevant to each. In time, the RIVIO Clearinghouse can be integrated into these portals.

Views: OK so on first sight, you may say “what is the importance of this?” Knowing this product fairly well, I can say there are multiple scenarios where it could be of use to a CPA firm and its clients, but the most basic is this: You have a small business client going for some level of financing, be it through a bank, venture capital or some form of private equity. The financier is going to require that business to provide financial documents and an audit statement – which a CPA firm will likely be asked to provide. The issues here are both process and privty. The current process of gathering and exchanging these documents is by all counts antiquated, not to mention open to fraud. It is slow, it restricts certain parties from being able to communicate directly with each other (i.e. if the financier needs a certain document they can’t directly contact the CPA firm and vise versa). Then there’s the issue of these documents potentially being altered, say verbiage being copied and pasted from the Web or even a CPA firm logo pasted onto a document which is then either faxed, emailed or mailed to the lender/financier. I could go on, but the bottom line here is there needs to be a better way to do all of this, CPA.com via RIVIO is offering it.

News: Incisive Adds New Capabilities to Detect Spreadsheet Fraud

Spreadsheet management technology provider Incisive Software Corp. has new capabilities designed to make it easier for organizations to identify fraudulent behavior. The company’s flagship Xcellerator product is now enabled with automated detection capabilities that locate hidden and misrepresented data within spreadsheets. This update also delivers additional performance improvements designed to reduce the amount of time it takes to scan spreadsheets for risk. Xcellerator can now discover hidden cells by height/width, so that it identifies rows and/or columns that are significantly reduced in size; monitors merged cell activity to ensure data is not accidentally or intentionally hidden; and support for Windows 10 and Microsoft Office 2016. 

Views: Look, for good or bad, most of you still work in spreadsheets and, as such, errors can and will occur. This could be through no fault of your own, or your client’s, or…but then again, it could be. Either way some of these errors and misinformation can of course lead down the path to fraud. Having a tool that can locate, verify and “unhide” data and identify areas of risk doesn’t seem like a bad thing to have in your corner.

News: FieldAware Adds International and Integration Functions

The latest release from cloud and mobile field service automation tool maker FieldAware includes integration to several accounting software packages including Sage, Xero, QuickBooks Online and desktop, as well as French language localization. With the integration of FieldAware’s mobile solution the aforementioned accounting platforms, when a work order is complete, and a job is closed-out on a field worker’s mobile device, an invoice can be automatically generated in the back office. The invoice includes all costs related to the work order, such as the cost of service and any parts/inventory consumed, and can be sent to the customer immediately. Integration of FieldAware with a customer’s accounting system also means that new companies, contacts and parts can be created in either system and automatically synced to both platforms. In addition, French is the first language to be released as part of FieldAware’s language localization and international expansion strategy. Available on both the FieldAware web-based app and mobile app, it allows French-speaking businesses to immediately take advantage of the mobile-first field service offering provided by FieldAware. Additional languages will be added with each new quarterly feature release.

Views: OK I was probably going to let this one go, but with the increase of the mobile work force it is highly likely that you have clients this product would be relevant for. Maybe the French language component isn’t quite as relevant, but the fact that it’s moving more international has to be a plus. The real reason for this getting an App Watch mention too is the integration with many of the top accounting platforms your clients are likely using. How well that integration actually works is, of course, one of those try it for yourself moments.

Until next week, we welcome your feedback and submissions openly.

RIVIO Clearinghouse Addresses Key Need of Bankers and Investors for Validated Data Sources

NEW YORK (May 3, 2016) – CPA.com and Confirmation.com today announced the launch of RIVIO Clearinghouse, which delivers CPA source-validated financial documents such as audited financial statements to bankers, shareholders and other investors. These documents are available through a secure, cloud-based platform that offers stronger fraud prevention and more sophisticated controls than existing delivery methods.

Private companies are the backbone of the U.S. economy, making up the overwhelming majority of the nation’s 28 million businesses. Unlike with public companies, whose key data is accessible through the Securities and Exchange Commission’s EDGAR system, there is no central repository for private company financial information. As a result, many private businesses still rely on outdated methods to distribute financial statements, tax forms and other key documents, such as mailing or hand delivering paper copies or emailing unsecure files. Banks, private equity firms and other users of this information have little way of knowing if the data they receive has been altered.

The RIVIO Clearinghouse transforms how private company financial information is exchanged by:

• Validating that a financial document has been uploaded by a licensed CPA firm
• Eliminating the possibility that company management can change data once it is uploaded by the CPA firm
• Allowing companies complete control over who can view the information, so financial data remains private and protected
• Providing anytime, anywhere access to the information, which can speed lending decisions and other business transactions
• Protecting private company information with encryption and an IT architecture tested by rigorous security audits

“In today’s digital world, bankers and investors are expecting authenticated sources of data,” said Erik Asgeirsson, president and CEO of CPA.com. “The RIVIO Clearinghouse uniquely provides a system where only licensed CPA firms can upload audited and reviewed financial statements used by lenders, private equity firms and others.”

The online clearinghouse was developed jointly by CPA.com and Confirmation.com, a company that offers a market-leading solution for electronic audit confirmations and is well known in both the accounting profession and the banking industry. RIVIO—an acronym for Repository of Intelligent Validated Inputs and Outputs—has been in a pilot phase with leading firms for the past year and was named a 2016 Top New Product by Accounting Today. The clearinghouse does not replace or compete with firm or bank portals, since it was designed specifically for transferring information between three distinct user groups with features relevant to each. In time, the RIVIO Clearinghouse can be integrated into these portals.

“One of the key benefits of the new clearinghouse is fraud prevention,” said Brian Fox, CPA, president and founder of Confirmation.com. “It’s easy to alter a paper financial document or create a bogus PDF, but the RIVIO Clearinghouse prevents changes once a CPA firm uploads a financial statement. That provides piece of mind for lenders and other interested parties.”

For more information about the clearinghouse, please visit RIVIO.com

About CPA.com

CPA.com empowers CPAs and businesses for the digital age. The company offers a growing list of digital products and services that help firms succeed in practice management, client advisory services and professional development.

CPA.com is a subsidiary of the AICPA, the world's largest member organization representing the accounting profession. The company has its headquarters in New York City and offices in Silicon Valley, Calif., Dexter, Mich., and Durham, N.C. For more information, visit CPA.com.

About Confirmation.com

Confirmation.com is the world's leading provider of secure online audit confirmations. Today, 13,000 audit firms confirm over $1 trillion annually for 700,000 clients worldwide. Confirmation.com is used in over 125 countries by banks, companies, and law firm to respond to audit confirmation requests. For more information, visit Confirmation.com.

Change management is an indispensable part of today’s business landscape, yet it remains a difficult concept to grasp, or is, at worst, simply overlooked. Furthering one’s firm is always part of the equation, but whose responsibility is it to manage the schedule for change and evolution? Is it strictly a managing partner’s job? A shared responsibility among firm leadership? Or should the responsibility be more widely diffused?

In 2016, there still isn’t a clear answer as to who exactly controls the pace of change in a firm. However, there are a number of factors that every firm can keep in mind to make sure that their rate of change is outrunning their clients’. When a firm recognizes what particular factors to pay attention to, they learn why change management is important for not only anticipating the future, but making themselves more marketable.

SQUARE ONE

Perhaps one of the biggest obstacles to change management is deciding how to first initiate a conversation. But getting the ball rolling can be easier than you think.

Carl Peterson, vice president of small firms at the American Institute of CPAs, argues that when talking change management in a place with limited resources, you should seek a connection with similar firms in order to move forward together: “I think the best thing they could do is participate in networking groups. The AICPA has networking groups, and change management is one of those things that comes up all the time, and when they find out what other people are doing and learn to implement it, that’s probably one of the best resources.”

Erik Asgeirsson, president and CEO of CPA.com, believes that the right state of mind is what drives change management inside a business. “I think, broadly, change management is all about having that progressive mindset,” he said. “What we’re seeing in successful firms — [no matter] what size or type — is it’s the progressive firms that are really making the most of these new opportunities that are possible due to this digital revolution that we’re in. They’re saying, ‘Let’s look at this through the different aspects of our organization: how we interact with clients, internal processing, how we’re delivering the service, the types of service that we’re providing.’”

Chris Alger, managing director in BDO Consulting’s Pittsburgh office, echoed this need for a progressive state of mind. “Strong, comprehensive change management programs are actually risk management programs focused on human performance and the human condition in the context of managed disruption,” he said. “Culturally, firms operating within a dramatically changing business environment need leaders that not only embrace change, but are capable of harnessing the value of the business opportunities created by these disruptive situations or forces. These firms will benefit from a formal center of excellence with core capabilities focused on providing the deep competence and methods that help institutionalize and cement the change culture.”

Alger says that such firms will be able to control change factors including, but not limited to, executive sponsorship methods and disciplines; stakeholder analysis and management (change preparedness); communications strategy, planning and execution; workforce development (training and education); and performance management, rewards and recognition.

WHO’S THE BOSS?

Since change management has not often been a conscious concern at firms, there’s rarely a single person identified as being in charge of implementing change. What may be more important than naming a specific spearhead of change, though, is to simply be open to evolution itself. If a leader, any leader, in a firm pushes a progressive mindset, it can set the tone for the firm and its future.

“Change management starts at the top, the idea of setting the groundwork for change,” said Peterson. “I think you have to have a managing partner make some of those hard decisions for the firm, but [there’s] really an opportunity to have inclusion of all staff levels. You can have input from all levels — it doesn’t just have to be the managing partner, it doesn’t have to be just the managers. If you think about the young professionals today, if they have input on what their future’s going to be, the environment or technology they’re going to use, it’s really going to build that team and that culture.”

Actively seeking out that champion of change in your firm may prove more fruitful than laying all expectations on the managing partner. When you find that open mind, our experts argue, it’s worth the investment.

“Your leaders can either act as defenders of the status quo or as enablers of the future way of doing business,” added Alger. “Positioning your firm as a proactive enabler of or catalyst for change can be a significant differentiator in the marketplace. But remember [that] the role of change agent or change manager is not in the DNA of most accountants. Thus, find out who are your natural change leaders and invest in their development and technical capability.”

“I think as you go to the larger firms, they’re having success with someone dedicated like an innovation officer in that role,” added Asgeirsson. “When you’re dealing with the small to midsized firms, you’re not going to have a dedicated resource, but I think you can identify a champion for innovation. I also think that it’s a good idea to have somebody who’s a younger member of the firm partnered with a more seasoned person who has the progressive mindset to doing things differently.”

THE ONLY CONSTANT

Change management doesn’t have to be as strenuous as many seem to think. A good leader with a progressive mindset — or one who seeks out that mindset internally — coupled with an awareness of how the business landscape is constantly shifting will lay the basic groundwork for successful firm evolution. Change starts not with an investment or practice, but a belief that it’s necessary.

“Humans are naturally averse to change,” said Alger. “Only a few fully embrace change in either their personal or professional lives. ... To an accountant, business change equals business risk, and risks are to be mitigated and managed. Seldom do you find strong agents of change in an accounting firm.”

“I don’t think we can follow that old path of every three to five years we’ll be making major changes,” said Peterson. “Change management should ultimately become part of your process as a firm. You do that every single year — you have a process in place where you can continually evolve and adapt and tweak. It’s an ongoing thing; you don’t want to be reacting to everything.”

Hello and welcome back to another edition of App Watch, the weekly column that gives you – the accounting professional – a quick snapshot of what was announced in the application and service provider world that we have deemed relevant to you. We also offer a bit on insight as to the importance of the news for you and, at times, the accountant-focused tech world at large.

This week’s Watch should come as little surprise. We’re neck deep into tax season and, as such, some familiar (and some not) tax product vendors have some news to share that could be pertinent to this season and beyond. So, without further adieu…

News: Small Firm Tax Research Tool Hits the Market

Metakite Software has released MetaTax, a tax research tool built for small firms and sole practitioners available on the Web and iOS. The company claims it has has over 100 tax topics covering the most common issues encountered while working with individual and small business clients. All content in MetaTax is fully searchable and cross-referenced. All information in MetaTax can be tied back to IRS forms, revenue procedures, notices, and other IRS guidance. Citations are available upon request. Sole practitioners can pay $9.99 per month for the product, while a small firm can pay $19.99 for up to 3 members.

Views: On first pass, who wouldn’t want a relatively inexpensive tax research tool. If you are a sole prac or very small firm, you’re probably just on Google or some other web search for what you need, maybe even the IRS site. Sure there’s the tax research tools offered by the major tax and practice management software makers, but it may not be viable if you’re an extremely small tax practice. If this tool does all it says it can, it seems worth examining.

News: Bloomberg BNA Updates State Tax Analyzer

The new version of Bloomberg BNA’s State Tax Analyzer is out and features NOL Manager, a new way to predict the impact state net operating losses (NOLs) will have on cash, the effective tax rate (ETR), and corporate earnings per share. The NOL Manager feature automatically computes the generation, utilization, carrybacks, and carryforwards of state net operating losses across multiple years and multiple scenarios. NOL Manager was also built to compute and document valuation allowances to withstand internal and external scrutiny; show impacts of IRS and state tax audits on NOLs; estimate taxes for financial statements and quarterly estimates; and calculate and track NOLs from the year 1998 forward for pre- and post-apportionment states

Views: So if any of your clients are dealing with net operating losses (they probably are), you know that while the federal code allows 20 years of NOL carry forwards and two years of NOL carrybacks, states vary greatly on their own NOL rules. As such, companies often have to navigate filing multiple entities in multiple states, forcing them to deal with hundreds or even thousands of returns in a single year. Not to mention, each filing requires its own NOL supporting schedule that could span upwards of 10 to 20 years. Sure, you’re in the middle of tax season now and you probably don’t have a lot of time to check out something new. But it seems this can help take away a pretty significant headache when it comes to state taxes.

News: Vertex SMB Inks Partnership With TaxCloud

Vertex SMB has formed a partnership with TaxCloud, a sales tax compliance service for online retailers. This partnership effectively expands TaxCloud’s geographic area of automated capabilities to include all U.S. and Canadian jurisdictions, while expanding e-commerce platform support for Vertex SMB – specifically to small online retailers. TaxCloud is certified to provide registration, filing, remittance, and audit response in the 24-member automated compliance states included in the Streamlined Sales and Use Tax Agreement.

Views: As with any growing business in this space, it’s good to build partnerships. And when you are a comparatively lesser known service provider, particularly when it comes to sales and use tax compliance, any such union is going to be a plus. Some of you may know that Vertex has a strategic partnership with CPA.com, the business/promotional subsidiary of the AICPA. That alliance alone looks to generate some awareness within the accounting community, now with this TaxCloud deal it adds further awareness and usefulness within the small business community.

That’s all for this week, as ever, if you have anything to add or some of your own commentary and insights feel free to do so below or post your own Any Answers or Blog post on our site.