Ring in the New Year and join the experts on hot technical updates to be prepared for a thriving BPO (business process outsourcing) practices in 2016! As we are aware, this business line is growing and maturing in accounting firms nationwide which leads to questions on best practices and the need for insights on changing regulations. Erik Asgeirsson and a panel of standard setters will share their insights and expertise on the following technical updates: 1. SSARS 21 effective date has now arrived! • We will discuss how to best position modern day preparation services • We will share best practices for SSARS21 legend implementation • We will review how to setup these new legends in various cloud based accounting programs 2. ACA (Affordable Care Act) compliance for 2016 • We will review what firms need to know for 2016 filings 3. Becoming an Anticipatory CPA • Learn more about a program coming to help you gauge hard and soft trends for more confident future planning

1. DIGITALCPAWEBCASTSERIES:
ACCELERATINGBPOPRACTICESIN2016
January 19, 2016

2. TODAY’SPANELISTS
Erik Asgeirsson
President & CEO, CPA.com
Mike Glynn, CPA, CGMA
Sr. Technical Manager,
AICPA
Tom Hood, CPA, CGMA
President & CEO,
MACPA
Al Anderson, CPA
Founder, Account-ability
Plus
Eric Enser
Product Manager,
Paychex

3. CPA.com, an AICPA company
• Empowering CPAs and Businesses for the Digital Age
Erik Asgeirsson, President and CEO, CPA.com
• Industry leader with over 20 years of experience leading
technology organizations
• Consistently recognized as one of Accounting Today’s
“Top 100 Most Influential People”
• BS Electrical Engineering, George Washington
University, and MBA in Finance, NYU Stern School of
Business
Host & Moderator

4. Guest Panelists
Michael P. Glynn, CPA, CGMA
Senior Technical Manager, Audit and Attest
Standards Group, AICPA
• Serves as staff liaison to the Accounting & Review
Services Committee (ARSC)
• Supports the activities of Auditing Standards Board
(ASB) and its subcommittees by assisting members in
drafting and deliberating authoritative professional
standards and interpretations
• Member of New York State Society of CPA’s Accounting
& Review Services Committee
• Worked at Ernst & Young
• Graduate of Pace University with BBA in public
accounting

5. 5
ACCOUNT-ability Plus, LLC Achieving Accounting and Auditing Excellence
Alan W. Anderson
Al has over 25 years of experience in the accounting
profession. After working primarily as a partner and
National Director of Audit in the firm of McGladrey and
Pullen, LLP and with the American Institute of CPAs as
Senior Vice President of Member and Public Interest,
Al founded ACCOUNT-ability Plus headquartered in
Minneapolis.
Al’s experience in the world of auditing reaches far and
wide. This includes helping to standardize the global
audit approach of McGladrey and Pullen, overseeing
the AICPA’s technical audit and accounting standards,
including self-regulation and the CPA examination and
implementing paperless solutions.
Al represented the AICPA on –
Financial Accounting Standards Advisory Council
(FASAC)
Committee of Sponsoring Organizations (COSO)
International Federation of Accountants (IFAC)
International Innovation Network (IIN)
Enhanced Business Reporting Consortium (EBRC)
Al also has been frequent speaker at conferences nationally
and internationally

6. Tom Hood
President, CEO, MACPA
• CPA Practice Adviser Accounting Hall of Fame
• Named the Second Most Influential in Accounting by
Accounting Today Magazine 2015 (11th year in Top 100)
• Top 150 Influencer by Linked-In
• Top 25 Influencers in Learning & HR by HR Examiner
• Top 25 Public Accounting Thought Leaders by CPA
Practice Adviser
• Working on Learning Management with AICPA/CPA.com,
Cloud Curriculum, Performance Management /XBRL,
Leadership & Generations

7. Eric Enser
Product Manager – Health Care Solutions, Paychex
• ACA regulatory expert; in constant communication with IRS
• Product Development leader driving payroll and benefits
technology solutions
• 15 years with Paychex including
• 12 years leading software development organization
• Graduate of St. Bonaventure University with a BS in Computer
Science
• Published in AccountingToday.com
• Contributing author to Entrepeneur.com, and others, on various
ACA topics

8. SSARS21STANDARD

9. New Thinking Required Due To SSARS21
• New Financial Preparation Standard
driven by cloud accounting
• Most significant non audit standard
change of past 35 years.
• BPO Firms Need To Think Through
How To Implement
EFFECTIVE
DATE
HAS
ARRIVED!
DECEMBER
15
2015

10. SSARS 21 – Four Sections
SSARS No. 21 is formatted into four separate sections:
o Section 60, General Principles for Engagements Performed in Accordance With
Statements on Standards for Accounting and Review Services
o Section 70, Preparation of Financial Statements
o Section 80, Compilation Engagements
o Section 90, Review of Financial Statements
These sections will be codified with the prefix “AR-C” to denote
them from the pre-clarified standards.
10

11. When does Section 70 apply?

12. Section 70 – Preparation of Financial Statements
Does not require the accountant to consider whether he or she
is independent
Requires an engagement letter signed by both the accountant
and management/those charged with governance
Can be applied to financial statements with or without
disclosures

13. Section 70 – Preparation of Financial Statements
Report is not required – even if financial statements are
expected to be used by a third party
o Not prohibited from including a cover sheet with the firm name
Requires a legend on each page of the financial statement
stating that no assurance is being provided
• Normally placed on the bottom of each page of the financial statements – including
related notes
• Not precluded from including accountant’s or accountant’s firm name in the legend
• Accountant is not precluded from including positive statements in the legend

14. SSARS21IMPLEMENTATIONDISCUSSION

15. Starts With Engagement Letter
Compilation Engagement Letter
Financial Statements Preparation Engagement
Letter
Transaction Processing Only – Not engaged to
prepare fin statement or perform a compilation
engagement
List services to be provided (A/P, Account
reconciliations, etc.)
Service Levels & Fees

16. SSARS21 Legend Implementation
16
Firms Need to Think About How to Best Implement Header and Legend
Requirement
Firms are discussing with their compliance departments
o When would they want to include firm name and positive statement about service along
with “no assurance is provided statement”
o How will the controls be managed
Accounting Software Report Writer and Page Header and Footer Controls are
very Important

17. Discussion Around Legend Examples
No assurance is provided on these financial statements.
These financial statements have not been subjected to an audit or review or compilation
engagement, and no assurance is provided on them.
No assurance is provided by ABC CPAs on these financial statements.
ABC CPAs & “Potentially Name of Service” prepared these financial statements for
Company XYZ. No assurance is provided on these financial statements.
ABC CPAs & “Potentially Name of Service” performed a financial statement preparation
engagement in accordance with Statements on Standards for Accounting and Review
Services promulgated by the Accounting and Review Services Committee of the AICPA. No
assurance is provided on these financial statements.

18. Ensure Compliance Through Permission Controls
18
Can the Financial Report Writer Be Set To View Only For Clients?
• Turn off ability for clients to add, edit, or delete reports

19. Ensure Compliance Through Permission Controls
19
• Is There An Accountant’s Footer?
• Do the page footer character limits present an issue?

20. Sample Financial Statement with Legend language 20
Smith and Jones CPAs Outsourced Client Accounting Service prepared these financial statements for XYZ.
No assurance is provided on these financial statements.

21. 2016AFFORDABLECAREACTFILINGS
Eric Enser, Product Manager – Health Care Solutions, Paychex

22. ACA – What Firms Need to Know
When and how do I have to know I’m an ALE?
o Determined in 2015, measuring NOW for 2017
Who are my full time employees THIS year?
o Determined in 2015, measuring NOW for 2017
Am I offering adequate and affordable coverage?
o Setup during 2016 Open Enrollment and monitor throughout this year
How and when do I file the information?
o Typically lines up with W2s, delayed with 12/28/15 IRS announcement
Measurement Period
(4/15/2014 – 10/14/2014)
Stability Period
(1/1/2015 – 12/31/2015)
Admin
Period
(10/15 –
12/31/14)
20152014
Measurement Period
(10/15/2014 – 10/14/2015)
Stability Period
(1/1/2016 – 12/31/2016)
Admin
Period
(10/15 –
12/31/15)
2016 2017
Tax Filing
(1/1/16-
3/31/16)
Tax Filing
(1/1/17-
3/31/17)
ALE Determination Period for Calendar Year 2015
(1/1/2014 – 12/31/2014)
ALE Determination Period for Calendar Year 2016
(1/1/2015 – 12/31/2015)
ALE Determination Period for Calendar Year 2017
(1/1/2016 – 12/31/2016)

23. Tax Reporting - FAQs
Q: What forms does my business have to file?
Applicable Large Employer (ALE) – the “C” forms
o All ALEs must file a Form 1094-C and file/furnish Forms 1095-C (IRC 6056)
> Each FEIN with a controlled group must file their own forms
ALE but provide self-insured medical coverage – the “B” forms
o All plan issuers must file a Form 1094-B and file/furnish Forms 1095-B (IRC 6055)
o Includes carriers and self-insured employers
ALE AND you provide self-insured medical coverage – the “C” forms
o Combined reporting is allowed for such ALEs – Part III is required on 1095-C for any
covered individuals
Not an ALE and do not provide self-insured coverage – No forms for employer mandate
Q: If I had between 50 and 99 full-time employees and equivalents in 2014, do I
have to do anything for 2015 tax year?
YES – if you qualify for transition relief from penalties, you are required to complete 1094-
C and 1095-C reporting requirements for certification

24. Important Filing Dates for 2015 Taxes
2/1/2016:
o 3/31/2016: employees must be provided copies of their Form 1095-C
2/29/2016:
o 5/31/2016: paper submissions of 1094-C and 1095-C(s) must be
postmarked for delivery to IRS
3/31/2016
o 6/30/2016: deadline for electronic filing of 1094-C and 1095-C(s)

25. Filing Penalties
Regular information return’s penalties apply to Section 6056
o Note: Updated information may be forthcoming given recent reporting delay
GeneralInformationReporting
ReturnPenalties
Correctly filed within 30 days of
the due date
• $50 per form
• Maximum penalty is $500,000/year
($175,000 for small business)
Correctly filed more than 30
days after the due date, but by
August 1
• $100 per form
• Maximum penalty is $1.5 million/year
($500,000 for small businesses)
Correctly filed after August 1, or
not filed
• $250 per form
• Maximum penalty is $3 million/year
($1 million for small businesses)

26. Employer Transmittal:1094-C
Basic demographic information
1095-Cs attached to THIS 1094-C
Because an FEIN may file 1 or more
1094-Cs
All 1095-Cs filed for this FEIN (1 or more
1094-Cs)
Controlled ownership group
affiliation
Simplified reporting
eligibility

27. Employer Transmittal: 1094-C
Monthly ALE Member Information
Aggregated ALE Group Members

28. Employee Statement: 1095-C
Section 6055
Reporting Only
9 possible codes – generally what was offered and to
whom?
Lowest cost employee share, regardless of
enrollment
9 possible safe harbor codes
Employee and all dependents covered
under the enrollment. DOB can be used in
absence of SSN
Basic demographic information

29. What Data is Needed for 1095-C?
Completing 1095-C requires benefits information for nearly every data point
29
Payroll Benefits
Fully Insured Applicable Large Employer OR ALE Without Medical Group Plan 
Self-Insured Applicable Large Employer (ALE)  
1A Qualifying Offer  
1B MEC with MAV offered to EE only 
1C MEC with MAV offered to EE plus dependents, not spouse 
1D MEC with MAV offered to EE plus spouse, not dependents 
1E MEC with MAV offered to EE plus spouse and dependents 
1F MEC but not MAV offered to EE or EE plus spouse, or EE plus dependents or EE plus spouse and dependents 
1G EE not full-time for any months of the year, but enrolled in self-insured coverage at least 1 month  
1H Employee Not offered any coverage 
1I Qualifying Offer Transition Relief  
$###.## Employee Share of Lowest Cost Monthly Premium, for Self-Only Minimum Value Coverage 
2A EE not employed in month 
2B EE not full-time or coverage ended last day of the month only because of termination  
2C EE enrolled in coverage 
2D EE in Limited Non-Assessment Period (LNAP)  
2E Multiemployer interim rule relief - EE covered by union plan
2F W-2 Affordability safe harbor test passed  
2G Federal Poverty Level Affordability safe harbor test passed  
2H Rate-of-Pay Affordability safe harbor test passed  
2I Non-Calendar Year Transition Relief applies to this EE 
MEC - Minimum Essential Coverage met by plan
MAV - 60% Minimum Actuarial Value met by plan
LNAP - 6 different scenarios requiring up to 24 months of payroll AND benefits data
1A, 1I, 2I- Transition Relief codes only available in 2015 (for now)
Line 16 -
Section 4980H Applicable
Safe Harbor Code
Calculated Form Information (per month)Calculations Required
Should the employee receive a
1095-C?
Line 14 -
Offer of Coverage Code
Line 15 - Employee Share of Cost

30. BECOMINGANANTICIPATORYTRUSTEDBUSINESSADVISOR

31. Source: Insight into the CPA of the Future Study 2015, produced by CPA.com & Institute of Global Futures
Only 8% of CPAs are Future Ready
Future Ready is the capacity to be aware, predictive, and adaptive of emerging
challenges, tech innovations, and trends and changes in business, population, and
social environment.

32. 0 2 4 6 8
Poor reputation
No personal relationship
Inadequate staff to meet needs
Not using state-of-the-art technology
Fees were too high
Expertise of former CPA was lacking
Referral to a new firm from someone I trust
CPA had poor responsiveness
CPA didn’t give proactive advice, only reactive
service
Why SMBs Leave Their CPA / Accountant
Source: What SMBs Want, 2014, produced by The Sleeter Group

33. What does it mean to be “anticipatory”?
Know What’s Next
HARD TRENDS will happen, they are future facts – they provide Certainty. SOFT TRENDS might happen
– they can be influenced. The Three Digital Accelerators provide accurate timeframes. Transformation
becomes your advantage.
Develop Opportunities
Every HARD TREND provides a new opportunity. Learn to use the Eight Hard Trend Pathways to
Innovation and how to anticipate disruptions, problems and customer needs, to identify game-changing
opportunities.
Shape the Future
Elevate and accelerate plans by using Hard Trend Opportunities to drive transformational innovation. Use
certainty to sell your ideas, transform how you Communicate & Collaborate, and become the Disruptor.
Accelerate Success
When your entire team shares the Anticipatory Organization™ mindset that’s based around the certainty of
HARD TRENDS, it will drive your organization’s strategic velocity and accelerates success.
33

34. Power of Certainty – In Technology Trends
New Program
• Dan Burrus Training Program with
MACPA & BLI
Understanding Future Trends
• Hard Trends – Things that will happen
• Soft Trends – Things that may
happen
Stay ahead of the game
• Predict future trends instead of
reacting to disruptions

35. Digital CPA Webcast Series –
Building a community of digital CPAs who embrace change
and the transformational effects of technology on today’s practice
•Hot Topics & Advisory ServicesMay 3, 2016
•Strategic Planning DiscussionJuly 2016
•Modern Day Cloud FinancialsSeptember 2016

36. Resources
SSARS21 Resources
o www.aicpa.org/ssars21
Digital CPA Webcast Series
o Quarterly through 2016
o Archives of DCPA Webcasts: www.DigitalCPA.com/Webcasts/Archive
CPA.com Blog
o www.CPA.com/blog
Follow @CPAcom on Twitter
o #DigitalCPA
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38. 38
Thank you!
#DigitalCPA