A study by Paychex has one 27 percent of business owners do not use any kind of data security software. The recently released results were published in a survey of 500 business owners with one to 500 employees who were queried about data security.

Of the other 73 percent of respondents, 48 percent use on-premise software; 11 percent, cloud-based software; 14 percent both.

Some of the businesses not utilizing data security software must feel secure because 81 percent of respondents said they were confident their company and customer data are as secure as possible. Similarly, 84 percent of the total believe they would be able to recover from a data breach or cyberattack.

Paychex also found the following from those surveyed:                                                                                                                                                                       *81 percent say employees recognize the importance of data security;                                                                                                                                               *72 percent regularly review their data security approach to ensure they are following best practices;                                                                                               *70 percent believe they have a clear data security policy;                                                                                                                                                                    *60 percent trains all employees on data security.

Larger companies are more likely to provide employee training. Eighty-nine percent of companies with 100 to 500 say they provide training, compared to 59 percent of those with one to 19 employees.

Half of 310 companies surveyed report their organization experienced some kind of data breachor cyberattack in the last year. The figures were released in Sikich’s 2019 Manufacturing and Distribution Survey, which said 11 percent of respondents had major intrusions. The survey was conducted online in April.

However, Sikich said a majority of executives are confident they can prevent or minimize these problems. Fifty-four percent of those surveyed were extremely or very confident of their ability to handle these situations while the figure rose to 74 percent for larger companies. For organizations with less than $500 million in revenue, only 49 percent had the same optimism.

”This disparity may be due to great spending on cybersecurity by these companies,” the report concluded.

The report defines larger companies as those with more than $500 million in annual revenue while smaller companies fall below that threshold.

Sikich believes having a single person having sole or primary responsibilty for cyber security is a better than having it be one among several responsibilities. That practice “can ensure that cybersecurity receives the concentrated attention that it demands,” the firm noted. Sikich conceded this practice can prove difficult at mid-market companies with smaller IT practices. “In these companies, where resources aren’t readily available, it may make more sense to look at outsourcing the entire cybersecurity program,” the authors recommended.

However, responsibility for managing cybersecurity is not centralized at most companies. Among larger companies, only 45 percent report a single executive is responsible for managing area as their sole or primary responsibility and that plunged to 14 percent among small companies.

Sikich also asked respondents how they sell and deliver products. Forty-nine percent of companies use e-commerce. But of that group, many felt e-commerce has not lived up to their expectations.

Thirty-nine percent said ecommerce sales had exceeded expectations, 37 percent said those sales fell short. Larger companies were more disappointed with 56 percent saying ecommerce sales lagged expectations and only 30 percent said they exceeded them.

Accounting firms did well when Microsoft named its Dynamics Inner Circle this month. Inner Circe includes the 50 top value added resellers in the world with three of the Big Four and four other accounting firms honored.

 The Big Four in the category are Ernst & Young, KPMG and Pricewaterhouse Coopers. The other firms named to Inner Circle were Armanino, Crowe, Sikich and RSM US.

 While accounting firms are a small part of Bob Scott’s Top 100 VARs this year and in past years, for 2019, they comprise five of the Top 10 and seven of the Top 20. That list did not include the Big Four.

There has been a lot of attention paid to blockchain. But despite that, the distributed ledger system is simply another way of delivering information. It’s plumbing as far as regulators as concerned.

“Regulators don’t care what technology you are use,” says David Deputy, Vertex’s director of  strategic development and emerging markets, and president of the Accounting Blockchain Coalition. “I feel like Paul Revere. I keep saying the regulators are coming, the regulators are coming.”

Vertex itself has not yet brought a blockchain-based system to the transaction tax market, but that is coming. It is testing a system and hopes to have it on the market not too far in the future. That is simply bringing “high-quality tax compliance to blockchain through automation”, says Deputy.  To put it another way, doing what Vertex has been doing all along with a different generation of technologies.

Deputy’s work with Vertex and with the coalition dovetails on this. A major problem, he says, is that  “If you are exchanging goods and services it’s subject to transaction tax” and that is not always happening with companies which use blockchain. “There are companies selling goods and services today and ignoring this,” he continues.

Deputy notes some refer to accounting with blockchain present as triple-entry accounting. “You have witness that is watching our debits and credits,” he notes. The blockchain network validates and preserves the transaction.

But there is a case to be made that it goes beyond triple accounting—to the dimension added by governments with government increasingly trying to get close to the transaction, with the possibility of payment to governments coming straight off the invoice.

Split payments—with part of the money paid going to the vendor and an other to an account for taxes—has been around for a while.

“Italy has some split payments,” Deputy noted. But blockchain makes it easier to track payments and make sure governments get their cut with part going to the vendor and the rest going to an account for taxes.

Italy has had split payments since 2014.  It. has gone further. Under a system that went into effect this year, Italian businesses must convert invoices for private domestic transactions into a government-defined XML format and send them through the SdI exchange. 

For resellers, the issue now is meeting user needs and making money, not worrying about whether software is in the cloud. Certainly, there are many thousands of on-premise mid-market accounting systems in use and a decent number are being sold. But the action is in the cloud and it is a matter of features, which is what users really care about. The issue is which product is better at handling nonprofits, which is good for businesses with inventory, which best suits professional services and which delve into highly specialized markets. In the fact, the thought did not even occur this year to count how many of the Top 100 2019 VARs carry cloud products. It was just assumed they all do. That is why this year’s theme is “The Cloud Rules”  If you are not in the cloud game, you are not really in the game.

2018 Report: Getting a Handle on the Cloud

Buyers and sellers are talking less and less about cloud software. The discussions increasingly center around how the software, which happens to be cloud based, helps companies solve business problems, not on the technology used. Read more how this is happening.

Sponsored by:

Report: Payroll Gets Easier: Running payroll, whether for a company to pay its own employees or to pay clients’ employees, has rarely been easy. But it is necessary, which is why the question of whether tax and accounting firms should offer services as a line of business has had some firms moving into the business and others moving out. Read more and find out where your firm falls.

Sponsored By:

Report: Using the Cloud to Protect Your Data

The handwriting is in the cloud. And given some real barriers to adoption of cloud-based software, the move remains a question of when, not if, for most businesses with the purchase of web-based applications picking up speed. Download this free special report and read how.

Sponsored By:

Jeff Siegel is the owner of Siegel Solutions, an 11-person firm that provides outsourced bookkeeping solutions usingJeff Siegel is the owner of Siegel Solutions, an 11-person firm that provides outsourced bookkeeping solutions usingQuickBooks to over 300 clients. Jeff knows what it takes to grow a business: efficiency of scale, real-time insights thatbuild strong customer relationships, and a secure data environment. He gets all three from Right Networks.

In this ebook, we’ll examine:In this ebook, we’ll examine:

• Why DIY (Do-It-Yourself) accounting systems created forsmall businesses cause undue pain for both small businessowners and for accountants
• How the right cloud-based professional accounting systemcan not only eliminate that pain, but also open up newopportunities for accountants to better serve their clients

Steven Brewer, CPA is the President of Steven Brewer and Company, CPAs, located in Salem, IN. He talked to AccountantsWorld about how he’s grown his accounting practice without needing to increase his number of clients – and how those improvements have eased his tax season crunch.

BooXkeeping: How White Label Bookkeeping Services Provide Scalability to Your Firm When it comes to running a business the main thing that every business owner wants to do is sell their products or services, create brand awareness and generate profits that they can enjoy later in life. The last thing a business owner wants to do is to worry about bookkeeping, taxes, and the rest of time consuming accounting tasks needed to run a successful business, with limited resources and time, often the bookkeeping ends up being the last on the list of things that need to be completed.

A CPA based in Lebanon, Mo., has been convicted of fraud that included using  $72,704 in client funds to pay off his Chevrolet Corvette. Douglas A. Richardson, 46, transferring $4.4 million from a former employer while stealing from clients—taking $7 million from both.

A federal jury found Richardson guilty of six counts of wire fraud and four counts of money laundering between February 2014 to October 2016. He faces up to 20 years in federal prison without parole for each of the six wire fraud convictions and up to 10 years in prison without parole for each money laundering count.

Since February 2009, Richardson had owned Douglas A. Richardson, CPA, LLC. He was also former CFO, treasurer, and CPA of Smart Prong Technologies, a Tulsa, Okla.-based business, from Dec. 2013, to June 2016. Smart Prong developed technology, and manufactured devices for charging cell phones.

Richardson transferred at least $4.4 million from Smart Prong’s bank accounts into his personal and business accounts. He tricked clients into loaning him money for investments, planning all along to take the funds for personal use and paid off other individuals, including prior investors and other creditors.

One client was encouraged to participate in a promissory note program. Richardson claimed the client could earn money from interest on loans for funding a real estate deal and an automobile dealership. After the client loaned Richardson $365,000 from his business, the CPA used $230,000 to repay another individual and $72,704 for paying off the Corvette, while issuing himself a $7,500 check.

A Lake Worth, Fla., tax preparer has been found guilty of government money theft, aggravated identify theft and of preparing false tax returns.  Larry Senat, 38, forged his signature on a $9,800 tax refund check and took $1,000 from each client’s refund, besides charging fees.

Senat was originally indicted on 11 counts of preparing bogus tax returns while operating American Justices Services and Tax  from 2012 to 2016, costing the government $11.7 million.

He inflated customer tax refunds through use of fabricated business losses and nonexistent education expense. Also, after the Internal Revenue Service suspended two EFINs that Senat used, he began using nominees to obtain EFINs to continue operating.

Senat faces a maximum sentence of 10 years in prison for theft of government funds and three years for each count of aiding and assisting in the preparation of false returns.  He also faces possible restitution, forfeiture, and monetary penalties.

Thomson Reuters is working to integrate customer productsm CEO James Smith said week. Smith made the comment during the webcast for earnings for the third quarter ended September 30.

He described the effort as a “customer-led approach to building open platforms ….”  Smith did not spell out any specific products or companies involved such integration.

“We are also working with our customers to integrate not only a number of our previously disconnected products but also other tools and databases they need onto our underlying platform,” Smith said.  “The more we can integrate our offerings, the more tools and capabilities we can offer our customers.”

Thomson’s integration efforts is part of a trend in which vendors, who previously did not connect their products with those from other software publishers, have been responding to customer requests to tie systems together.

 For the quarter, the company’s Tax Professionals continued to perform well. Adjusted EITDA for the most recently ended period was $35 million, an increase of 9 percent from a year earlier, down 2 percent in constant currencies.Tax Professional revenue reached $166 million, rising 11 percent from $149 million in last year’s corresponding period; up 10 percent in constant currencies.

Thomson lost $44 million for the quarter, compared to net income of $302 million in last year’s corresponding period. Company revenue for the recently end period was $1.4 billion, up 10 percent from $1.3 billion in the year-earlier quarter.

A Plainfield, N.J.-based tax preparer has been sentenced to 30 months in prison for filing fake returns both for clients and himself. Samuel Davis Jr., 54, a former N.J. State Police officer, received the term after pleading guilty to conspiring to defraud the IRS, falsifying his tax returns and witness tampering.

The witness tampering charge stemmed from Davis’ discovery in October 2018 that his son had been subpoenaed to appear before a grand jury and he tried to persuade his son to provide false testimony. 

Davis was a detective sergeant with the N.J. State Police who also owned and operated the Get Organized Tax & Accounting tax preparation business. From 2011 to 2016, Davis and co-conspirator, Kyna Felder-Ruiz, filed fake income tax returns for clients. For tax years 2012 through 2014, Davis also underreported income from the tax business.

Davis retired from the State Police in 2016 after 28 years.

Davis was also fined $10,000 and ordered to pay $71,558 in restitution to the Internal Revenue Service.  Felder-Ruiznis was scheduled to be sentenced this month after her guilty plea.

Wipfli has hired Thomas Wojcinski to leadits cybersecurity practice in the Chicago and Eastern Wisconsin market.  Wojcinski specializes in cybersecurity, IT risk management and IT governance initiatives for American and multinational organizations. 

He worked with Baker Tilly Virchow Krause from July 2003 until taking the new job. From September 2012, he was a director who was responsible for the firm’s growth and development of cybersecurity, IT process assurance, and IT governance services nationally.

Frazier & Deeter has hired CPA James Dawson as a tax partner with a focus on international tax. He will serve American and foreign enterprises in a wide range of tax areas.

Dawson will focus on subjects such as tax efficient global supply chain management, structuring of international business models and operations, cross border transactions, project management and coordination of services in foreign jurisdictions.

He was previously a partner of international tax for accounting firm Crowe from May 2015 through October 2018. Before that, he was national leader of international tax services at Cherry Bekaert from January 2012 through April 2015 and was a partner in international tax for RSM McGladrey from 2006 through 2012.

Xero has named Hubdoc’s co-CEO Jamie McDonald as executive general manager of product, accounting and global services.  McDonald, who will continue his Hubdoc role, will oversee development of core accounting tools in the newly created position.

Xero acquired Hubdoc in August. Hubdoc go-to-market teams will continue to report to Jamie Shulman, Hubdoc’s other co-CEO. McDonald said he would be continuing work in harnessing the power of artificial intelligence and machine learning for the benefit of Xero customers around the globe.

Val Steed, widely known as a consultant and CPE presenter in the accounting community, has accepted a position as director of accountants for Zoho. Steed, a shareholder, is best known for his work with K2 Enterprises since January 1989.

“I’ll be responsible for maintaining industry relationships with national and international accounting organizations and top accounting experts,” Steed said in a LinkedIn post. He said he will also work to initiate partnership iwith accounting technology companies. Zoho is interested in connecting with all kinds of finance professionals, including bookkeepers, accountants, PAs, CPAs, CAs, CFPs, CFOs. Zoho markets a range of web-based applications, including accounting, CRM, HR and IT management.

“Social media is not about the exploitation of technology but service to community.” - Simon Mainwaring

Remember, a new leaderboard with updated rankings is generated every two weeks, so keep up the great work on social media and watch your ranking climb! Think you’ve got what it takes to make the Top 100? Join for free today!

“Social media is a much more personal approach to marketing than more traditional tactics like placing an advertisement in a local newspaper, and lends itself to a more human approach. You should always err on the side of professionalism, but sharing a few details about the person, or people, behind your company can give your brand more personality – something that works very successfully in the world of social media.”  

 Here are some highlights from the newest Top 100…