Cherry Bekaert: Professional Services

In this episode of the Professional Services Podcast Modern CFO Series, the discussion focuses on how modern chief financial officers (CFOs) are building a connected digital core. Partner and Professional Services Leader Kristin Bettorf, Assurance Services Partner Scott Duda and CFO Advisory Director Alex Wiley explain what a digital core means and how it connects people, processes, technology and data to support stronger finance performance.

The conversation highlights common technology challenges for professional services firms, including disconnected systems and fragmented data, and explains why integrated, reliable data is essential for AI adoption. It also outlines practical approaches for improving performance, such as prioritizing high-impact processes like order-to-cash and using AI to support automation, analytics and decision-making.

Tune in to learn about:

• What the digital core means for professional services firms and its importance
• How people, processes and technology support finance transformation 
• Why disconnected systems create visibility gaps and impact margins
• Key requirements for AI adoption, including integrated systems and reliable data 
• Where CFOs can begin applying AI across finance processes 
• How standardizing workflows and connected systems can improve efficiency and insight

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In the first episode of our Modern CFO series for the Professional Services Podcast, discover why finance modernization is a priority for today’s CFOs in professional services firms. This episode features Kristin Bettorf, Partner and Professional Services Leader, Scott Duda, Partner, Assurance Services, and Alex Wiley, Director, CFO Advisory. Together, they discuss how the CFO role is evolving beyond reporting, what’s driving digital transformation, and where firms can focus to improve margins, visibility and performance.

Tune in to learn about:

• Why finance modernization is rising on the CFO agenda across professional services firms 
• How the role of the CFO is evolving from financial reporting to strategic leadership 
• What makes finance in professional services different from other industries 
• The biggest obstacles firms face when trying to modernize finance operations 
• Why people, process, data and technology all need to work together for progress to stick 
• Why order-to-cash is often the right place to begin for firms looking for measurable impact
• How AI is being applied today through automation, analytics, forecasting and collections processes 
• What three practical steps CFOs can take to begin the modernization journey

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Navigating Coverage, Claims and Complexities

In the fast-paced world of professional services, where client trust and reputation are paramount, maintaining seamless operations is crucial. Business interruption insurance serves as a vital safety net, offering financial protection against unexpected disruptions, like natural disasters or cyberattacks. 

By covering lost income and operating expenses during such events, this insurance helps firms maintain stability and focus on recovery, ensuring they continue to meet client needs without compromising their reputation.

This podcast episode explores the world of business interruption insurance with Cherry Bekaert’s Forensic & Dispute Advisory Services team members, featuring Partner and Practice Leader Lori Smith, and Managing Directors John Collier and J.C. Tuthill. This episode is essential for business leaders looking to safeguard their operations against unexpected disruptions.

Together, they discuss: 

0:12 – The importance of understanding your insurance policy’s fine print to avoid inadequate coverage that could lead to serious financial setbacks. Navigate your policy's declaration page, including coverage types, limits, deductibles, and waiting periods, enabling comprehensive protection for your business.

3:39 – The process of calculating claims and the benefits of hiring independent forensic accountants to assess losses and maximize coverage accurately. Discover the impact of various coverages, such as ordinary payroll, extra expenses, civil authority coverage, utility failures and dependent property coverage on your claims.

11:07 – Practical advice on managing your insurance policies. Understand the importance of defined terms, endorsements, riders, and exclusions, and learn how to work proactively with insurance agents and forensic accountants. In the event of a loss, get tips on prompt reporting, loss mitigation and effective communication with insurance adjusters.

Don’t miss this informative episode filled with practical advice and strategies to help your business stay resilient despite unforeseen challenges. If your clients or firm has any questions about business interruption insurance or how to prepare for a disruptive event, please reach out to our Forensic & Dispute Advisory Services team.

Related Insights

• Article: Calculating and Recovering Lost Profits From Business Interruptions
• Article: Navigating Hurricanes and Tax Relief: Guidance from the IRS and State Tax Authorities
• Article: Ways to Effectively Manage Cyber Risk for Professional Services Firms
• Article: Get Ahead of Natural Disasters With Business Continuity Response & Disaster Recovery Plans

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In the latest episode of Cherry Bekaert’s Professional Services podcast, we discuss the importance of cybersecurity, privacy and data security within the professional services industry. Scott Duda, Professional Services Industry Leader, is joined by Steve Ursillo, a Partner with Cherry Bekaert’s Information Assurance & Cybersecurity practice, as they explore the top cyber threats facing the industry. 

Listen to learn more about:

• The top cyber threats facing the professional services industry
• Why managing cyber risk is important for professional service organizations
• How cyber threats affect the overall well-being and operational integrity of professional service firms
• What measures professional services firms should implement to reduce their exposure to cyber threats
• How Cherry Bekaert’s team assists professional service organizations to help manage the threat landscape

Professional services firms can benefit from expert assistance to effectively manage their cybersecurity threats to better ensure compliance, protect client data and maintain operational integrity. 

Cherry Bekaert’s Information Assurance & Cybersecurity practice offers a full range of cybersecurity, privacy, attest and risk mitigation services to help protect your information systems, data and people from cyber threats. Our team can assist in identifying relevant cyber and privacy risks to create practical solutions and plans to reduce the likelihood and impact of any potential system or data breaches. Don't wait until it's too late to protect your firm from cyber threats. Contact us today to collaborate with our professionals and tailor a flexible and scalable solution to meet a variety of cyber, privacy and risk needs. 

Related Guidance

• Alert: Reducing Vulnerability: Strategies for Managing Cybersecurity Risks in IT Supply Chains
• Article: Third-Party Risk Management (TPRM): Top Strategies for Managing Vendor Risks
• Webinar Recording: Getting Ahead of CMMC Compliance: Latest Insights & How to Prepare
• Article: The Imperative of Cybersecurity Vigilance to Safeguard Critical Assets in Light of Nation-State Threats

[Questions? Contact Us]

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In the 14th episode of Talkin’ Talent, Sam sits down with Toby Wyatt, founder of Motherlode Consulting, as she shares how her unique career journey led her to offering “ops in a box” business operations services to support CEOs and leadership teams. Her trial-and-error approach, from starting a greeting card company as a child, to obtaining a degree as a high school math teacher, helped her uncover her passion for mentorship and helping others succeed in business. 

Unable to find a teaching job, she pivoted into business operations roles at several companies before starting Motherlode in 2021. Through her diverse professional experiences, Toby recognized a need to help companies with 50 to200 employees with operations, human resources, change management and scaling. 

This episode covers: 

• Key milestones in Toby’s career and how she transformed challenges into opportunities
• Operational and talent challenges small and medium-sized companies may face as they scale 
• Indicators businesses may benefit from operational consulting
• How fractional operational expertise can help CEOs reimagine human resources, implement organizational changes and handle transitions 

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Architectural & Engineering (A&E) firms that propose or work on government contracts may be required to have an adequate system review. In this episode of Cherry Bekaert’s Professional Services podcast, Brynn McNeil, an Audit Partner in the Firm’s Professional Services Industry practice, welcomes Eric Poppe, a Managing Director in our Government Contractor Industry practice, to discuss the types of systems reviews and the advantages these reviews can provide emerging small businesses.  

Listen in to find out about: 

• The types of system reviews and why an A&E firm would need one
• Size limitations and/or system limitations that A&E firms face when maintaining an adequate accounting system
• Determining the best time to get a system review and the length of validity
• Understanding who can perform these types of engagements
• Best practices for preparing for a successful system review
• Analyzing why a system review might be beneficial for an emerging small business

Cherry Bekaert’s Professional Services team is well versed in guiding A&E firms in the development and maintenance of compliant business systems, performing systems assessments, providing audit support and preparing contractors for audits or reviews by the Defense Contract Audit Agency (DCAA), the Defense Contract Management Agency (DCMA) or other cognizant agencies.

If you have any questions specific to your business needs, Cherry Bekaert’s Professional Services team is available to discuss your situation with you.

Related Resources:

• Podcast Series: Contractor Business Systems
• Podcast: What Are Indirect Rate Overhead Audits and When Is It Required?
• Podcast: Form 7205: What A&E Firms Need To Know To Claim the Section 179D Tax Deduction
• Article: The FAR Audit: Does Your Architectural/Engineering Firm Need One?

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Architectural & Engineering (A&E) firms that propose or work on government contracts may be required to provide overhead rates prepared in accordance with the Federal Acquisition Regulation (FAR). Many government agencies require that A&E firms have their overhead rates audited.

In this episode of Cherry Bekaert’s Professional Service Podcast, Brynn McNeil, an Audit Partner in the Firm’s Professional Services Industry practice, welcomes Mandy Grivnovics, an Audit Senior Manager in our Professional Services practice. Together they define an indirect rate audit and its drivers. They also discuss key considerations and best practices to get through an indirect rate overhead audit.

Listen in to find out about: 

• Overhead rate audits and their drivers
• Determining factors for A&E firms that work with State Departments of Transportation whether an audit is needed
• Critical audit components, including timekeeping/labor and cost allowability
• Key considerations relating to allowable costs and unallowable costs
• Best practices for preparing and successfully getting through an overhead rate audit

If you have any questions specific to your business needs, Cherry Bekaert’s Professional Service Assurance and Advisory team is available to discuss your situation with you.

Related Resources:

• Webinar Recording: 2022 Professional Services Series: Understanding Overhead Rate Basics
• Article: The FAR Audit: Does Your Architectural/Engineering Firm Need One?

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When the Inflation Reduction Act (IRA) was signed, it greatly increased the benefits of the Section 179D Energy Efficient Commercial Buildings Deduction (Section 179D) for A&E firms. A large part of the process when claiming the Section 179D deduction relies on keeping strict documentation. Form 7205 is a form in the claiming process that qualified businesses and individuals use to calculate the deduction, mark yourself as the designer or building owner, and provide information on the person performing the certification and completing the allocation.

The Internal Revenue Service (IRS) released an updated Form 7205 in February 2023. In today’s Professional Services podcast, Cherry Bekaert leaders Scott Duda, Professional Services Industry Leader, and Ron Wainwright, Tax Credit & Incentive Advisory Partner, discuss:

• Background on Form 7205
• Form 7205 benefits for A&E firms
• Impact of the IRA on A&E firm eligibility for Section 179D benefits
• Requirements to qualify for Section 179D benefits
• Form 7205 requirements
• Form 7205 utilization
• Future focus areas for A&E firms in 2023

Related Guidance

• New IRS Form 7205 for Returns Requiring Section 179D Documentation
• How Can A&E Firms Take Advantage of New Tax Credits in the Inflation Reduction Act?
• What the New Audit Technique Guidelines Mean for Cost Segregation

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What year-end, tax-saving steps can professional services businesses and their owners take? How can they prepare for tax law changes impacting 2023? 

In this episode of Cherry Bekaert’s Professional Services podcast series, Dale Hrapchak, Tax Partner in Cherry Bekaert’s Professional Services Industry practice, and Amber Teague, Tax Partner in the Firm’s Private Client Services practice, discuss year-end tax planning at the entity and individual levels, including pertinent information for professional services businesses.

Listen in to find out about:

•  Methods to reduce current year income for both accrual method basis and cash method basis taxpayers
• Other year-end planning considerations, including fixed assets and bonus depreciation
• Employee Retention Credit (ERC)
• Research & Development (R&D) Tax Credit
• Section 179D Energy-Efficient Tax Deduction
• Pass-thru entity considerations
• Tax planning, including quarterly projections to avoid surprises
• Planning around capital gains (potential loss harvesting)
• Retirement plans, including VIP retirement plans and health saving contributions to manage income
• Charitable contributions
• Year-end gifting 

If you need help with year-end tax planning, Cherry Bekaert tax advisors are available to discuss your situation. We welcome the opportunity to identify tax planning opportunities for you and your company.

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The Inflation Reduction Act (IRA), signed into law on August 16, 2022, significantly increases IRC Section 179D energy tax deductions. These tax incentives are highly advantageous to architectural and engineering (“A&E”) firms responsible for the design components of government-owned, energy-efficient buildings. The IRA also extends the deduction to designers of commercial buildings owned by tax-exempt organizations, including not-for-profit organizations, churches and other religious organizations, tribal organizations, and not-for-profit schools and universities.

Ron Wainwright, a Partner in Cherry Bekaert’s Tax Credits and Incentives Advisory group, joins Scott Duda, Leader of the Firm’s Professional Services Industry practice, to discuss how A&E firms can take advantage of these expanded tax incentives. 

Listen in to find out about: 

• An overview of the Inflation Reduction Act
• How the IRA will impact A&E firms
• IRC Section 179D Changes
• 45L Energy Efficient Home Credit Changes
• What A&E firms should look out for

If you have any questions specific to your business needs, Cherry Bekaert’s Tax Credits & Incentives Advisory team is available to discuss your situation with you.

Related Resources:

• Article: Inflation Reduction Act Nearly Triples Section 179D Tax Incentives
• Case Study: Global A&E Firm Saves $2 Million with 179D Tax Deduction
• Podcast: The Benefits of using a CPA Firm to Perform Credits & Incentives Projects

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