LETTER FROM THE EDITOR

To our colleagues,

Here is the latest issue of the Partners’ Network Newsletter with information we think you will find helpful in your

practice. We’ve included some history about Roderigo Sanchez, the first accountant in America, a letter from

our colleague Gil Dorfman that we found very informative and wanted to share with you, PCAOB registration

requirements, Information about a new book I just had published, and tips about presentations to clients, what

makes a good client and ways to make clients aware of your capabilities.

We’ve also included information about our annual CPE Conference that will be held on Thursday June 24th, 2010

from 8 to 4:40 PM at the Crown Plaza in Monroe Township, NJ. The program schedule appears on the next page.

There is an $80 discount for Partners’ Network members. Note that a Partners’ Network membership is $145.

If you are not a member, join now and get the $80 discount for this CPE Conference and free attendance at the

Annual Power Breakfast in September and the pre tax season CPE program in February. If you are not a member,

please consider joining.

An added bonus of our meetings and conferences is the opportunity to network and discuss current issues.

Partnerships and mergers have taken place with colleagues meeting at our conferences.

The Partners’ Network is a program of WithumSmith+Brown intended to support smaller accounting practices in

areas where they need help or do not perform services. Members are welcome and encouraged to call us with

any issues and questions they have where we might be able to assist them. This includes managing their practices

and succession planning as well as accounting, auditing, specialized tax services, business valuations and forensic

accounting. We also assist in niche areas where we are particularly strong such as construction contractors,

manufacturers, health care organizations, real estate developers, financial services including hedge funds and

broker dealers, and public companies.

Be sure to sign up for this valuable CPE program being held June 24th. Attendees will receive a thick handbook

that will be a complete reference source to refer to in the future. Copies will also be provided on CDs after the

conference. We will also include some extra goodies on the CD.

Sign up today and reserve your seat! We look forward to seeing you on June 24th.

Cordially,

Edward Mendlowitz

Editor

P.S. We perform many other services for CPAs including peer and quality reviews, business valuations, and audits

that you may not be in a position to perform. Please keep us in mind when you are in need of these services. We

can also lend a hand to controllers who need assistance on special projects.

PARTNERS’ NETWORK NEWSLETTER

WithumSmith+Brown, PC

MAY 2010

WITHUMSMITH+BROWN, PCONE SPRING STREETNEW BRUNSWICK, NJ 08901P. 732.828.1614 F. 732.828.5156

Contact:Ed Mendlowitzemendlowitz@withum.com

Heather Suddothhsuddoth@withum.com

WithumSmith+Brown, PC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Ave, North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasba.org

• Delivery Method: Group-Live• Program Level: Intermediate• Prerequisites: Must be a CPA in own practice or a Partner/Manager in a firm• Advanced Preparation: None

For information regarding refund, complaint, and program cancellation policies please contact Heather Suddoth at hsuddoth@withum.com

Thursday, June 24, 20108am - 4:40pm

PARTNERS’ NETWORK ANNUAL CPE CONFERENCE

This CPE program offers 8 CPE credits: 2 Accounting, 1 Auditing, 3 Tax and 2 Consulting Services.

This program is designed to meet NJ, NY, PA and NASBA CPE requirements.

The Crowne Plaza390 Forsgate Drive, Monroe Township, NJ 08831

Ed Mendlowitz, CPA

Peter Weitsen, CPAPeter’s Annual IRS Update - our most popular program! One hour is not nearly enough, but what a giant handout you will get. 1 Tax CPE Credit

Brian Lovett, JD, CPA

Frank Boutillette, CPA

Don Scheier, EA

Shawn Gillon, CPA

Tzvi Zicherman, CPA

Lawrence S. Horn, Esq.Richard J. Sapinski, Esq. Partners, Sills, Cummis & Gross, PC

10 Standards of Business Valuations, Their Differences and When They Apply1 Consulting CPE Credits

Networking Break

Lunch and Networking Break

Preparing Construction Contractor Jobs in Progress Schedules and Methods of Allocating Overhead1 Accounting CPE Credit

Tax Strategies After the Returns Are Filed; Defending Audits and Preventing Criminal Investigations.1 Tax CPE Credit

When Accruals are Deductible; 263A Flow Charts; Stepped Rent Arrangements; and Deducting Start up and Organizational Costs.1 Tax CPE Credit

Traps to Avoid in Compilations 1 Accounting CPE Credit

Advising a Client who Becomes an Executor 1 Consulting CPE Credit

Adding Value to the Standard Audit Procedures 1 Auditing CPE Credit

Networking Break

8:30 - 9:20

9:20 - 10:10

10:10 - 10:30

12:10 - 1:00

10:30 - 11:20

11:20 - 12:10

1:00 - 1:50

1:50 - 2:40

2:50 - 3:40

3:40 - 4:30

2:40 - 2:50

WITHUMSMITH+BROWN

Dear Ed,

I am a great fan of your Partners’ Network Newsletter. At 84 years of age I wish I was young enough to work for a CPA firm that is managed like your organization and its positive attitude. CPAs generally are still 30 years behind the times.

In 1980 I appeared before the Public Relations Committee of the AICPA to get funds for a TV pilot where our profession could let the public realize how important CPAs are in everyday problem solving. Since then the CPAs have taken the rap for bank failures and the downturn in the economy. They say “where were the accountants?” The CPA image used to be #1 - we are now #501.

Years ago there was one program on TV about lawyers (LA Law) and several about doctors, but never anything about accountants. Today the general public doesn’t know what we do. The smaller firms need direction.

The AICPA Board voted me down 5 to 3 saying TV shows are too sexy and we don’t need a public relations program.

Our young students don’t become CPAs. We still do not have one program where the CPA is the lover, good looking, and the winner.

Every day the CPAs are solving business problems and the lawyers are getting the credit. Ralph [Thomas] and I discussed promotion of our profession the day he started working in Roseland.

Your firm might want to start a program to jazz up our firms.

Let your next newsletter address the situation to improve our business image. Image is the first part of the word Imagination which is lacking in our firms. Client and staff loyalty are essential.

Your firm seems to be on the right track to modernize our professional approach and improve client relationships.

Include this subject in your next CPE lecture.

Thank you, Regards,Gil Dorfman, CPA

I have the highest personal regard for Gil, his experience and insights. This letter indicates an energy level that more of us should have, especially our colleagues half his age. We appreciate his taking the time to write and share his thoughts with us. Our September Power Breakfasts have been addressing some of the issues Gil raised.

-- Ed

Roderigo Sanchez of Segovia was

the 1st Accountant in America. He

accompanied Christopher Columbus

on his first journey to the “New World.”

He was comptroller of the fleet and

keeper of the armaments and was

engaged by King Ferdinand and Queen

Isabella to travel with Columbus and

keep track of the riches and wealth

that was to be found in Asia (the

Indies). He is third from Columbus’

right wearing the big hat. Columbus

is shown on the right with the sword

touching the ground. This painting

was by John Vanderlyn and hangs in

the United States Capitol rotunda.

The Partners’ Network published a

Topps® trading card showing Roderigo

as the First Accountant in America.

If you would like one, email Heather

and she will mail you one. A new card

is being prepared and it will make its

debut and be distributed at the June

24th CPE Conference. We also still

have a few Luca Pacioli cards left if you

want one of those. Tell Heather you

want this too.

Roderigo Sanchez - First Accountant in America

LETTER TO THE EDITOR

Attention: Auditors of Broker-Dealers PCAOB Registration Requirement

For those of you that audit non-public broker- dealers registered under the Securities Exchange Act of 1934, you should be aware of the requirement to register with the PCAOB.

Background – this requirement actually originated out of the Sarbanes-Oxley Act of 2002, however, the U.S. Securities and Exchange Commission granted several temporary exemptions, which extended the exemption for fiscal years ending before January 1, 2009. However, in the wake of the Madoff scandal, the SEC was not going to provide another extension. As a result, audits of non-public broker-dealers for fiscal years ending after December 31, 2008 must be performed by an accounting firm registered with the PCAOB.

The Process – the process is relatively simple – complete an electronic application form and pay the application fee. See http://pcaobus.org.

PCAOB oversight – Under current law, audits of non-public broker dealers, like other private company audits, are not subject to PCAOB inspection. However, there is a bill pending in the House that would allow the PCAOB to inspect the auditors of the non-public broker dealers. While we cannot predict the outcome of this legislation, it would appear that PCAOB oversight in some form is on its way. Your broker dealer audits could be subject to PCAOB inspections.

Over the years we have worked with many firms in managing these changes for mutual benefit. We would look forward to working with you.

By James F. Weeks, CPA, CVA, PartnerTeam Leader, Broker Dealer Services Group

You’ve heard of sound bites: those 10-second bits of information and quotable facts given by the media in a

news report. But what’s a Power Bite?

A Power Bite is a short saying, brief explanation or even shorter call to action given by expert businessperson Ed

Mendlowitz – and something that can help anyone needing motivating and practical advice for improving their

management, leadership or life.

In Power Bites: Short and to the Point Management, Leadership and Lifestyle Advice I Give My Clients

(published by iUniverse), CPA Mendlowitz dishes out dozens of gems of advice he has given clients during his

40 years practicing as a CPA. With easy access to some of the smartest and most resourceful people including

entrepreneurs and chief executives, Mendlowitz has seen and heard and shared it all. He often is the first person

his clients confide their problems and concerns to because he consistently presents effective, immediate and

practical guidance to help them gain perspective and confidence. Mendlowitz is one of the country’s most

successful accountants and a successful author as well, and his speeches and books have helped thousands

learn to better manage, serve and advise their clients.

Here’s are a few Power Bites: “How can you learn anything when you’re talking?” “Never Trouble Trouble Till Trouble Troubles You!” “When Other’s

Push the Pencil for You, Make Sure it is Your Pencil” and “Never Seek Total Victory…Unless You Are in a Dark Alley or a Courtroom.” Power Bites

is seven parts, focusing on “self-management,” “leadership” “delegating,” “efficiency,” “business development,” “negotiating,” and “you,” including

advice on listening, self-awareness, how to stay focused, setting goals, admitting mistakes, thinking positively, and how a smile really does make a

difference. Available from: www.iUniverse.com, www.bn.com, and www.amazon.com

Power Bites: Short and to the Point Management, Leadership and Lifestyle Advice I Give My Clients!

Presentations to ClientsWhat clients get is part of your brand. We continually give clients “things.” They get tax returns, financial statements, newsletters, notes, emails, memos and a myriad of other things. How it is presented or delivered establishes your “brand.”

Some firms place the client copies of tax returns in binders with fancy covers, while others staple them sloppily and throw them in a messily addressed envelope. Every contact creates an image and affects the way you are perceived. A super professional image is not always the appropriate way to proceed, but a sloppy image is always inappropriate.

You can be perceived as sloppy in differing ways. Everything can be done in the most professional high class manner and the envelope could be addressed to a “Mr.” while the client is a “Dr.” - Sloppy! The postage meter indicia could be faint needing ink. Sloppy! The envelope could be addressed to a former address. Sloppy! Insufficient postage could be placed on the envelope. Sloppy! You can deliver the paper tax returns to the client at the last minute and not put stamps on the attached envelopes for the returns to be sent to the tax authorities. Sloppy! Actually not being state of the art, such as offering e-filing, can be perceived as sloppy! Or minimally as not current!

When you deliver something to a client it serves the utility of giving them what they paid for. But it also serves a promotional or marketing purpose.

Partners of CPA firms are usually more experienced and set up their practices and their procedures in a way that they are comfortable with – for good or bad. Staff can’t have that experience and in many instances it is a waste of time to try to teach it. They don’t have the feel or experience needed to digest the purposes and benefits of following it or detriments of not following it. Procedures should be established that are followed and adherence to those procedures should be monitored regularly.

Many firms now have portals where a client can log on and have access to their files and download their returns. This is also a more secure way of doing things than email. At some point this will become a standard procedure. Isn’t it better to start with it now, rather than being one of the last to adopt?

Another way to send, receive and retrieve secure files is to use LeapFILE™. LeapFILE is easy to use and you do not need a portal. For information, go to www.leapfile.com to find out how you can use it. It is much better than email for security and is priced quite reasonably. And it could make you out as being fully “state of the art.”

WHAT MAKES A GOOD CLIENT?

1. Clients that do what they say they will do

and who do not delay sending us what we

ask for

2. Clients that do the work organizing their

documents before they provide it to us

3. Clients that give us estimated amounts and

tell us they are estimates and how they

arrived at it and why they cannot give us the

actual amounts

4. Clients that pay their bills promptly

5. Clients that call the partner to complain

about a bill and not by sending a note to the

“bookkeeping department”

6. Clients who complain right away when they

are upset with something, and who make

the complaint to the partner, not the staff

people that happen to be at their office at

that moment

7. Clients that make us explain clearly what we

tell them to do, and who don’t give the go

ahead without fully understanding what is

to be done

8. Clients who review the work we send them

when it is received and who don’t sit on it

until eight minutes before it needs to be

filed

9. Clients that use technology fully

10. Clients that are not litigious

11. Clients that understand that taxes need to

be paid to maintain our society

12. Clients that realize that banks and

finance companies need back up and

documentation when they lend funds, and

that there is a cost to develop that data, and

that it is not our “fault” the work is needed

13. Clients that understand that we sometimes

might make a mistake, and who accept a

rational and reasonable explanation and

who won’t keep bringing it up months and

years later

14. Clients that occasionally thank us for our

efforts on their behalf

15. Clients that refer potential clients

16. Clients who are happy with their lives

Ways to Make Clients Aware of Your Capabilities

Call your clients after tax season and ask them to come in for a consultation.

• A suggestion is to call a client in June and tell them you are reviewing their financial situation and feel that they could be helped by a high value low cost consultation to review their asset allocation and goals and to make sure they match up; or a fiscal fitness check up. Mention a fixed amount for an hour and half consultative meeting.

• 1/20th Rule: A suggestion is to target meetings with 1/20th of your “eligible” tax preparation clients a year. This is an opportunity to help them and elevate your service beyond the preparation of their tax return. Note that you will have to call much more than 1/20th of your clients to get meetings with 5% of them – but it will be well worth the effort.

• An “eligible” client excludes school age children or clients in nursing homes, and possibly someone just filing bankruptcy. Actually, the bankrupt client might really need your help in rehabilitating their credit standing and with help in adjusting their spending habits. If they are a long time client, you could do this on a pro bono basis – nothing wrong with helping someone every once in a while.

Tell clients what services are available when they come in to provide you with their tax information as you review what they are giving you.

• An example is where they have a need for retirement planning or help with their 401k investment allocation choices.

• A hot area is IRA conversions to Roth IRAs.• An important service is assembling all the client’s investment statements and doing a cohesive

and comprehensive assets allocation analysis. Most clients have this done piecemeal by brokerage account or custodian. You need to tell them this!

Engage your clients – be interested in them – find out what their long term, and not just financial, goals are. Find out who they know that you know or who you would

like to meet.

Call your clients to pass on information you believe they would be interested in. This

creates a bond that you might be able to use later on to help them or yourself.

Relate what you do to their job and the company they work for.

• If they work for a small manufacturer, distributor or advertising agency, let them know that you have clients that are in those businesses, and tell them about your consulting services in those areas including cost control, inventory management or exploiting bank finance opportunities.

• If they work for a closely held family business, tell them about your expertise in advising families in succession planning where there are or may not be family members working in the business; training younger family members in basic business techniques; how you can help the owner develop exit strategies including preparing the business for sale; or how you can perform due diligence if they are thinking of expanding by buying a competitor or enter a new market.

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WS+B’S PARTNERS’ NETWORK CPE RESERVATION & MEMBERSHIPAttend WS+B Partners’ Network, June 24, 2010 Annual CPE Conference @ $275.00

Already a member? Receive an $80.00 Partners’ Network discount

Additional person at the same fee I am paying

I cannot attend. Please send me the conference handbook on a CD @ $100.00

Check here if you would like a Kosher meal.

• If they are higher level executives, tell them how you can help with employment contracts or obtaining perks such as stock options or restricted stock.

Other areas where you can offer to assist clients are:

• Discuss their interest and dividend 1099s to determine why they chose those investments and based on their responses to make them aware of possible alternatives, including tax exempt bonds, annuities or preferred stocks. (Note that I am not recommending any of these by this mention).

• You can discuss asset allocation choices, and mid-term and long range goals. How concerned is the client about their children’s or grandchildren’s educational funding, or their retirement and financial security when they no longer work.

• Where the client is supporting a relative, have they made adequate arrangements should they die prematurely? Do they have the right documents such as a will and trusts and guardianship payment or “allowance” arrangements?

• When was the last time a client reviewed their IRA, 401k, 403b, pension and similar plan beneficiary designations, if ever. In some cases this could be more important than having a will. And you could be the right person for them to speak to, or be the catalyst to have these items put in order so the client could accomplish what they really want.

• Clients that are charity minded can be assisted to make sure adequate funds are left in the right manner to their favorite and most meaningful organizations.

• Clients with over or under withholding can be assisted to adjust these amounts. Also, at that time, the underlying circumstances causing those situations can be reviewed, and perhaps beneficially altered.

• Clients with household employees and nanny’s can be walked through the proper requirements for reporting their wages.

• Where a marital separation or divorce is contemplated.

Why should my firm join The Partners’ Network?• To broaden your firm’s services and expertise• To help you build your business for growth and

profitability• To obtain answers to challenging audit and tax

matters with a phone call• To get ideas and tips on how to better manage your

practice

What does The Partners’ Network offer a firm like mine? Again, many answers:

• Free Power Breakfasts, covering timely topics, such as:

� “Internet Marketing” ideas for using the Web to build business � “What Makes a Company Great?” attracting & retaining talented staff � “Making More Money” setting fees, effective billing

• Discounts on the annual CPE Conference in June• Invitation to the pre-tax season CPE program.• Up to three questions on tax, accounting, auditing

or practice management answered at no charge. Just pick up the phone and call, or send one of us an e-mail.

• Contacts with peer CPA practitioners and opportunities for exchanging ideas, resources and information with your colleagues.

How do I join? Membership is $145 per year ($500 for firms of 100+). Phone or e-mail Heather with your credit card information or put a check and business card in the mail. It’s as easy as that. So give Heather a call today at 732.828.1614, or send an e-mail, hsuddoth@withum.com. We look forward to hearing from you soon.

6

THE PARTNERS’ NETWORK

PEER AND QUALITY REVIEWS

We are registered with the Public Company Accounting Oversight Board (PCAOB) and are available to perform your peer review.

Call us for more information.

Frank Boutillette, CPA/ABV, Partner732.828.1614

INDEPENDENT BUSINESS VALUATION SERVICES

Objectively determining the value of business enterprises and assets.

Call us for more information.

Ed Mendlowitz, CPA/ABV, Partner732.828.1614

Accredited in Business Valuation (ABV) by the American Institute of Certified Public Accountants.

WithumSmith+Brown, PCCertified Public Accountants and Consultants

w i t h u m . c o m

One Spring Street

New Brunswick, NJ 08901

The Partners’ Network Newsletter is published by WithumSmith+Brown, PC, Certified Public Accountants and Consultants. The information contained in this publication is for informational purposes and should not be acted upon without professional advice.

WITHUMSMITH+BROWNANNUAL PARTNERS’ NETWORK CPEJune 24, 2010

Our WS+B professionals are giving you an opportunity to learn about valuable tools that you need to put your business in a position of strength.

This CPE program offers 8 credits: 2 Accounting, 1 Auditing, 3 Tax, and 2 Consulting Services.

Look inside for more information.