Inside DMLO

Congratulations to these professionals whose contributions to the firm have resulted in a promotion:

Supervisor to Manager: Renee Gehring, Peggy Athanasakes, Keith Von Handorf

Senior Accountant to Supervisor: Charlene Chessler, Kevin Graham, Melissa Bragg, Amelia Higdon

Staff Accountant to Senior Accountant: Megan Weaver, Krissy Moore, Nate Littles, Seth Gamble, Scott Gagel

We are proud to have you on our team!

Significant changes were made to Kentucky sales tax laws effective July 1, which impact many local, independent businesses from gyms to nonprofits. The Louisville Independent Business Alliance (LIBA) is hosting a seminar for local business owners to learn more about the new laws on Thursday, October 4^th from 9:00am-10:00am at The Foundation for a Healthy Kentucky, 1640 Lyndon Farm Court, Suite 100.

At this seminar, accountants from DMLO CPAs will provide a practical understanding of who is impacted by the new Kentucky law, how to apply and file online for those who have not had to previously, where to get answers to very specific circumstances and what to do if you are not yet in compliance.

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I was recently invited to speak about our decision to partner with Canopy in pursuit of Making Kentucky First in Good Business. In explaining why it is such a natural fit, I highlight three of the top reasons I chose and continue to choose DMLO:

If our culture and values align with what is important to you, connect with me to learn more about how you might join us in using business as a force for good.

We are proud to announce that we have joined forces with Canopy, Stoll Keenon Ogden, Louisville Forward, and other socially-conscious groups in pursuit of Making Kentucky First in Good Business!

We will be sharing more soon; meanwhile, check out this awesome new video:

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Wondering how you are going to figure out where you fit best, when CPA firms often seem to be more similar than different at first glance? Look closer, and you will find we each have a distinct ‘personality’ and culture, and it can have a big impact on your satisfaction and success if you end up in a firm that doesn’t ‘get’ you.

We embrace specific values that you won’t find to be as highly prioritized at other firms in our area. If words like choice, fun, flexibility, meaningful work, buy local, social impact, using business as a force for good, and more than the numbers resonate with you, keep reading. And don’t just take our word for it. Learn about the independent recognition we repeatedly receive for our workplace culture and philanthropic work.

We’re unique in important ways, and if that piques your interest, stay tuned as we update this Top 10 series:

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Kentucky House Bill 487 includes provisions related to expanded sales tax regulations. The bill, effective July 1, 2018, impacts many nonprofit organizations. This infographic addresses some of the questions we are hearing most frequently about what is taxable and what is not. You may also find helpful information here.

Changes in annual not-for-profit financial statements prescribed in Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities (ASU 2016-14) will affect substantially all NFPs. They are designed to provide more relevant information about an organization’s resources, and the changes in those resources, to donors, grantors, creditors, and other financial statement users. We will be happy to review the changes in more detail with you, but below is a brief overview.

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Kentucky House Bill 487 includes provisions related to expanded sales tax regulations.  This bill does apply to nonprofit organizations and is effective July 1, 2018. 

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#CPALife can be highly rewarding but also present its share of challenging moments. Sometimes it’s the little things that make a difference in your day. In our industry, that often involves food or refreshments! In addition to the treats delivered to our office during busy season from vendors, clients and friends of the firm, and the healthy snacks provided by our Health & Wellness Committee, we have a wonderful administrative staff who go the extra mile to bring in ice cream for Float Fridays, keep the popcorn machine poppin’ on Wednesday afternoons, stock the break room with free soft drinks, coffee and iced tea, celebrate birthdays each month with cake, and coordinate meals on Saturdays during tax season.

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If you don’t know what the ‘flashcube’ building is… that’s where we get the name NewsFlash: Inside the Cube for our monthly internal newsletter. Our office consists of the entire 11^th floor, beautifully renovated a couple of years ago. Not only will you not have to hassle with downtown traffic (unless you live there, of course), but you’ll have free parking, convenient access to a plethora of shops, restaurants, etc. And we have an onsite security officer, well-lit premises, keycard only building access after hours, and a floor with secure keypad entry. We designed a great employee lounge as a space to get away for a few moments, grab a cup of coffee or tea from the Keurig machine or some candy from the gumball machine, catch part of game, play the Wii, hit the punching bag, have a private conversation, or whatever you need to relax and/or recharge.

One of your first experiences with us will be new hire orientation. Soon after, you will be matched with a mentor – a more experienced staff person who will serve as a “coach” as you navigate your first years with us. We strive to pair people who will not normally be working together daily. This is an important relationship, and mentors are encouraged to arrange time on a regular basis to meet and chat about any concerns or questions that may arise in your day-to-day experience and interactions, as well as interests, ideas or suggestions that you may wish to share.

For new accounting staff, one of the big goals is to pass the CPA exam, if you haven’t already. We want you to succeed in achieving this milestone, and will support you by 1) paying for time off to take the exam, 2) paying the fees for the initial sitting 3) paying for one CPA exam review course (up to $1,500). When you do pass, we will help you celebrate with a $2,000 bonus and an extra day off to spend it!!!

We pay for your annual AICPA and KyCPA membership dues, and for all ongoing CPE requirements. We provide in-house seminars/CPE, Lunch ‘n Learns, and other educational opportunities which cover “soft skills” development as well as technical knowledge. In addition, we will work with you to select outside CPE courses offered by organizations such as the Kentucky Society of CPAs on relevant topics that will enhance your skill set and value. Not only do we cover the costs of all annual CPE requirements for the CPAs on staff, but we also track it all for you, so that you don’t have to.

We encourage staff to pursue specialized training and/or certification the lines up with firm and niche objectives, and with approval, will cover the related costs. Our membership in BKR International (we’ll be discussing this in a future post) provides numerous and ongoing opportunities for professional growth and development, which we often take advantage of.

Another way we seek to bring out the best in our employees is to invest in leadership training and programs. For example, we typically sponsor one or more employees each year in Leadership Louisville/Leadership Southern Indiana programs where participants learn about various aspects of our community and how to get involved/make a difference, in addition to continuing alumni responsibilities following graduation from the program. DMLO not only covers the tuition fee, but also pays for much of the time employees devote to the program, both while enrolled and as alumni.

We are very intentional about developing our niche groups, and as you gain exposure and experience, encourage you to consider if you might enjoy directing your time and talent to a particular group, where you will be able to focus more intently on developing your status as an “expert” in your field.

We expect and encourage staff at all levels to see the value in learning to promote both the firm and themselves individually through online and in person relationships, event networking, community involvement, knowledge sharing, board service, identifying new business opportunities, etc. You will receive specific communication regarding the expectations at each level, and ongoing coaching as needed.

We want you to get involved, and be where our clients and target clients hang out. We will help you select organizations or events to join or participate in for which you have an interest or passion, and will pay membership dues and event fees for approved organizations.

Our goal is to create an environment and offer resources and opportunities that will allow you to thrive as a professional and as an individual, and to make a real difference for our clients and community.

Based on what we know, our salaries are pretty darn good. But you can be the judge of that.

Our financial package includes a great deal more than your salary. Below are highlights of some of our benefits for full-time staff:

• Generous healthcare package with two options, dependent coverage partially paid
• Long term disability, 100% paid
• 401(k), with annual % of salary contributed by firm
• Employee life insurance, 100% paid (3x annual salary)
• Cafeteria plan
• Generous paid time off, including ten observed firm holidays, up to six paid sick days, and two weeks paid vacation after a full year of employment (3 weeks after 3 full years, and 4 weeks after 8 full years)
• CPA exam bonus of $2,000 and additional paid day off
• Staff bonus plan (discretionary pool based on productivity)
• New client incentive bonus of 20% of fees collected for service performed during first 12 months
• Employee referral incentive awards of $1,000 for hired CPA and $500 for hired exam-eligible college graduate.

Of course this is merely a summary, and all of these benefits are covered in more detail in our employee manual.

Many of the benefits you will find here are hard to assign a monetary value to, yet are more prized than money by our staff.

For example, our culture of flexibility. We’ve been recognized several years in a row for it with the When Work Works Award (formerly Alfred P. Sloan Award for Excellence in Workplace Effectiveness and Flexibility). We embrace flexibility in when you work, where you work and how you work. A significant number of our staff have formalized work-flex schedules, but even those who don’t still benefit on a regular basis from the firm-wide culture. Simply put, we TRUST you to do what you need to do to balance the needs of the firm, its clients, your co-workers, and your family and personal commitments. Priceless!

Other non-financial rewards:

• Diversity in work experience – you won’t be forced to choose between audit, tax, etc.
• Denim Fridays and year round business casual
• Office closes at noon on Fridays during the summer
• Optional Saturdays during busy season
• Carry forward unused sick time; can donate to others
• Minimal travel

This whole blog series is really about all the benefits of being part of DMLO. Read on!

DMLO is a member of BKR International, a leading association of independent accounting and business advisory firms, representing the expertise of more than 150 firms in 300 offices in over 70 countries around the world. BKR is ranked #7 by AccountancyAge.com among international associations/alliances.

Our extensive relationships and leadership roles within BKR enable us to take advantage of the experience, knowledge and resources of other highly respected peers globally, while maintaining our own unique personality, traditions and sense of community.

For our staff, it’s the best of the Big Four and a local firm, ideally combined!

Our technology is based on the best practices we see in our industry. We strive to equip our staff with the latest in proven technology to enhance productivity while reducing downtime with outdated or untested hardware and software. We cycle out old equipment on a regular basis and do not “cascade” equipment, meaning we don’t give the new stuff to more senior staff and shuffle the old equipment down. Everyone gets brand new, latest and greatest on the same schedule, Directors and new staff included.

We believe that people need and should have the ability to balance their personal and professional lives, and strive to ensure they have the tools to work as needed, anywhere/anytime with remote access. Over half of our staff log in remotely via laptop with VPN and WiFi accessibility, giving them a virtual desktop experience. WiFi is accessible throughout our office and conference rooms, which are equipped with 50 inch flat screens televisions and set up for audio and video conferencing. Our phone system is state-of-the-art VoIP that integrates with MS Outlook, allowing greater convergence between tablet, cell phone and computer. Our Exchange server allows for convenient 24/7 access via smartphone/tablet. Our in-house technical support team of three people keeps everything running as smoothly as possible to minimize downtime and inconvenience.

We have a video booth for producing high quality videos in-house, as well as a photo studio for instant professional headshots and group photos.

A big part of our identity is a culture in which individuals find fulfillment in what they do each day. Our professionals want their work to have meaning and purpose, and to make a real difference for someone else.

DMLO was a finalist for three consecutive years for Republic Bank’s We CARE Awards, recognizing businesses that encourage employees to become involved as volunteers in their communities. We do this by helping to identify opportunities, and allowing company time and resources for this purpose. Several partners and staff members have been highly recognized for their roles and accomplishments.

In addition to individual contributions, the firm invests financial resources in regional projects and organizations. We are a Top Investor with Greater Louisville Inc. as well as a High Impact Portfolio company, and a strong supporter of and contributor to One Southern Indiana.

Some of the ways we give back:

♦ We partner with Fund for the Arts and Metro United Way each year. The majority of our employees make individual contribution commitments, which the firm matches.

♦ Volunteers of America Hope for the Holidays campaign

♦ We enter corporate teams in various projects and events throughout the year: Habitat for Humanity, Big Brothers Big Sisters Accountants Bowl for Kids’ Sake, the American Heart Association’s Heart Walk, the Hosparus LUNAR 5K, St. Vincent de Paul’s Help Build a Playground project, Dare to Care, and others.

♦ Denim Fridays provide an opportunity for staff who wish to join us in supporting one of our not-for-profit clients to donate and wear jeans.

♦ We love entrepreneurs, and support Louisville’s startup community in various ways, including offering free Open Office Hours at iHub, a Nucleus Kentucky co-working space downtown, and sponsoring the LaunchIt program.

Giving back to our community has been part of the culture at DMLO since it began, and will continue to be a priority in years to come. Many of the people we hire come to us with an already extensive resume of community service. We are very proud of our professionals for their willingness to share their time and talents freely!

Our iGen committee is a diverse group of employees who identify with and have a passion for those who are beginning, or have recently embarked on, a career in accounting, and who want to be part of a collaborative effort focused specifically on making sure that we stay relevant and attractive – addressing the issues and concerns of younger generations and providing an environment and structure in which they can thrive. Our President meets with the committee, and no topic is off limits. It is very important to us that our younger staff have a strong voice within the firm, and plenty of opportunity to share feedback, concerns and innovative ideas, many of which have been implemented successfully.

We brought in a national speaker and generational strategist Cara Silletto to make sure we are on target when it comes to bridging generational gaps. We are actively involved in and supportive of the Young Professionals Association of Louisville and several local emerging leaders programs.

Can a firm have a personality? Not literally of course, but if the majority of people that make up the firm have certain characteristics, they begin to blend together into a “feel” you get when you interact with us. Above are a few of the words we would choose to describe our “personality.”

Traditionally, CPA firms have been defined by the following characteristics:

• Consist of “good people doing good things”
• Professionals know a little about a lot but not a lot about anything
• Owners often take clients and staff for granted
• Strong focus on client service but little attention given to making the FIRM better
• It’s all about the billable hour
• Never-ending checklists
• Minimal accountability
• Reluctance to embrace innovative and progressive ideas and new technology
• Failure to respect and embrace differences; huge generation gap
• Can’t see the forest for the trees
• Climb over dollar bills to pick up pennies
• Sole proprietors sharing office space, with no clear leader or team

Many still are. This is where you will see a difference at DMLO.

And oh, BTW, we aren’t following the merger crowd, dealing with ongoing disruptions from big mergers and the unavoidable struggle to integrate and assimilate varying cultures and processes, requiring you to figure out where you fit in and whether your job is even on the line. Our attention and energy will be focused entirely on you.

Ultimately, it probably comes down to this conversation in your head: Do I like them? Is there a connection? Do I fit? Do people I trust think so too?

You decide.

We are excited to announce that Ben Benedict has been promoted to IT Director.

Ben was born and raised in Auburn, California – in the foothills of the Sierra Nevada Mountains. He earned a Bachelor of Business Administration degree in Accounting from Simpson University. He began his career after college with a small tax accounting firm, where he provided tax, bookkeeping, and IT services for six years. He moved to Nashville and took a job in IT for Dell, before changing gears and becoming a warehouse manager for a flooring company. A better financial opportunity brought him to Louisville, but unfortunately his job was eliminated when the economy took a dive. He went back to school, earning an Associate Degree in Computer Science from Sullivan University.

“I’ve always built and managed computers on some level, so it just made sense,” said Ben. “I met some great people, and after considering several job options, I decided DMLO was the perfect fit, given my experience.” Ben joined the IT team in June 2012.

Awesome Moment: “Reconnecting with someone I’ve known for over 20 years, who has become my best friend and love of my life.”

Odd fact about myself: “I had the opportunity to travel while in college. I’ve been to Ukraine twice, for a month each time, working at an orphanage. I also had the opportunity to lead a group of business students to India for 6 weeks.”

What I bring to the table as the new IT Director: Loyalty

If I could pick one word of the year, it would be: Growth

Congratulations Ben!

With the passing of April 26, 2018, House Bill (“HB”) 487 became law. The bill is effective immediately, unless other effective dates are noted. This bill includes most items from the original tax reform House Bill 366, with added technical corrections, as well as some key additions – thereby, effectively replacing HB 366. Following is a summary of key provisions of HB 487:

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