The Greenest CPA

December 10, 2009 • 3:17 pm 0

Global Warming Is Not A Religion

Is it just me, or is it unbelievable that Sarah Palin and her like-minded cronies can do so much damage in this world? Please, just let me take a minute to vent here. I am so beyond frustrated that some of the most stupid people in this world get to have their voices heard so loudly, while the normal rational people sit by and go unheard.

I guess it’s our own fault for not staging crazy scenes and posting them on You Tube. Or for not having a cable news station on which to cry all day and night. But, I can’t help but wonder – aren’t the wrong people angry?

I feel the same way about health care. Why is it that the uninsured sit silently by, grateful for any care they receive, while the well-insured march around demanding to be heard? Similarly, why is that those of us who actually want to continue living and breathing on this planet are completely overshadowed by a few crazy people who would rather make more money now at the expense of all future generations. These same people run around crying about the amount of taxes their children will have to pay, but could care less about whether there are any fish in the oceans for their children to enjoy. Or maybe they just think the fish are as “unlucky” as the polar bears?

(Note: I am a CPA, and of course always work to minimize tax liability. But, some things are just more imporatant than taxes.)

It seems to me that we should be the angry ones. Those of us that don’t want our oceans to turn into an acidic, plastic soup. Those of us that don’t want to drink contaminated water. Those of us that don’t want to see all of our green spaces disappear. And yet, we never speak up. We never go all bat-shit crazy on You Tube, running and screaming and making the news. Because we are rational and believe in rational thought.

But, I think we are making the wrong choice. No one cares enough to read articles and get the whole story on anything anymore. All anyone wants are just news blips, tweets, and thirty-second videos. Rational thought certainly doesn’t make the news, and apparently, it doesn’t get anything done.

So, what can we do? We, who are rational thinkers, who like to read the whole story before making an opinion. We, who try our best to make informed decisions in a world where information is way to difficult to come by. My best thought it to start with your politicians. Unfortunately, they are the ones who are going to make these decisions for us. Even more unforutnately, the only people they seem to listen to are the ones who speak the loudest. So, we need to get louder.

I read here that the number of Americans who “believe in” global warming has dropped by 8% since 2008. I was so struck by the wording – “believe in” – in this article. I am sorry, but is the fact that polar bears are dying out written in an ancient text, or something we can physically measure today? How about the giant icebergs floating around New Zealand – were those a mirage? Was Hurricane Katrina a myth? I just don’t understand how one doesn’t “believe in” global warming. Do these same people also not “believe” in the Great Pacific Garbage Patch? Or maybe they just don’t believe that humans caused it. Maybe they believe that God delivered unto us all of that plastic.

The article mentioned above goes on to explain that this reduction of belief in global warming in America with leave President Obama unable to act against Congress. Now, this is why we need to get vocal. We need to let our senators and representatives know that we do care, we do believe, and we want to be heard, too. We need to write letters. Lots of letters. We need to vote. We need to let our senators and representatives know that we vote.

If everyone who cared about this issue wrote three letters (one to each of your senators and one to your reprsentative in the house), our voices would be impossible to ignore. There will always be people like Michael Pollan, Al Gore, and No Impact Man who will make louder statements than the rest of us. But, we cannot sit around and wait for them to do all of the talking. We need to show that we are the majority, not the minority. That the rational thinkers matter and count in this country.

I urge all of you to write those three letters, long or short. It will make a difference.

Filed under: Green Philosophy

October 21, 2009 • 1:02 pm 2

AICPA Recognizes Sustainability

Amongst other key issues recognized, Robert Harris (2009-2010 AICPA chair) acknowledged sustainability and the triple bottom line as important considerations for the institute. Read more about what Robert Harris said on this and other topics at his keynote luncheon here.

Most notably, Harris realizes that CPAs actually can do something positive for the environment, and by doing so they can bring value to both their firms and their clients. I found this to be very exciting – the fact that this topic was even brought up by the AICPA represents a change in the way CPAs are thinking today. Now I know that I am not alone in my quest to be a green CPA.

Filed under: AICPA

• 10:31 am 0

License in Hand (and on Wall)!

It’s been a while since I have updated this blog, but I swear that I have a good excuse! The October 15th tax season was killer this year. Thankfully, that is over, as is another huge hurdle in my life: I have received my CPA license! Yes, that means that I did pass REG back in May, and the state of CA only took two months after my finding out to send me my very exciting wall certificate.

Note: the certificate is not actually on my wall, per se. I still have it rolled up in the mailing tube. I am not exactly sure how I want to frame it yet!

Anyway, with that license comes a greater sense of responsibility. That being, how do I use my license to bring about the greening of America? The goal is so daunting, it’s hard to know where to begin.

Before even getting into that, though, I got a comment asking for advice on studying for the exam. I used the Becker self study materials, because those were the materials provided to me by my firm. However, I don’t think the materials are what matters. What matters is the effort. Let me just explain to you my life while studying:

Mondays thru Thursdays: work eight hours per day, come home to have dinner with my husband, then spend between two and three hours at the computer studying. We have a one-bedroom apartment, so I focused by setting up a table that faced away from the television. I used earphones when I listened to lectures, and listened to my iPod while I did study questions. Sometimes I was able to study at work if I didn’t have anything else to do. That is the luxury of working for a CPA firm where they want you to pass!

Fridays: took a break

Saturdays and Sundays: spent as much time as needed to “catch up” to where I felt I needed to be. That could mean anywhere between two and six hours studying, depending on how much I procrastinated during the week.

Right before exams, I totally crunched. I always gave myself at least a week to do the 100-question progress tests. With Becker, you can assume you will get about 10 points higher on the actual exam than you get on the progress tests – this was always true for me. I also took the two practice exams with the simulations. Those exams were always much tougher than the actual exam, but really helped me stay focused.

Throughout the entire time of taking progress and practice exams, I kept a notebook next to me and made notes on all of the items I got wrong. After a while, I started getting fewer and fewer things wrong, due to all of my notes. Eventually, right before the exam I would be left with a list of things that I really needed to focus on. I would rewrite those notes a few times, until I felt I had the concepts memorized.

I also used Becker’s flash cards during my crunch time. These cards also helped me memorize the concepts I had a hard time with.

If you are working during this time, do yourself a favor and DO NOT plan to study for and sit for exams during your busy times. You will get burned out doing that. (Notice how above I said I worked eight hours per day. If it had been busy season, I could not have done studied after a long 10-12 hour day.) The most important thing is to give yourself your very best chance at passing. That means knowing when you will have the most time to study and focus before an exam, and then actually doing the work.

Another tip is to sign up for the exam before you start studying. That gives you a solid timeline, and will keep you focused. I would generally give myself at least one week per chapter in the Becker book, plus one week of intense crunch time after that. One exception was for Audit, which I studied for in only three weeks. I chose that exam to do that with, because I felt most familiar with those concepts. But, it was a grueling three weeks, with absolutely no days off from studying. I also took two days off from work to study, and I took the exam the day before Thanksgiving, so I gave myself time to recuperate. Boy, did I need it. I actually had a pounding headache as soon as I got home from the exam, which lasted until I went to sleep that night.

In all, with busy season and everything, it was one year from when I first started studying to when I found out that I got my license. It was a tough year – one where I had to put family and friends aside and make passing the exam my number one priority. My husband was beyond supportive of me, and understood that I would simply not be very available to him during that time. I truly thank him above anyone else for helping me get through all of those grueling hours, and encouraging me that I could do it. If it weren’t for him, I am sure I wouldn’t have passed all four sections on my first try.

I also have to thank my co-workers at my firm. They never hesitated to give me great tips for studying, and always kept me motivated to keep going.

In all, I am so thankful to have passed and have it behind me. To anyone who is feeling the pressure of this exam, know that you can beat it and that you will pass it. Please feel free to leave a comment or send me an email if you are feeling that you need some extra motivation.

And now, on to being the best, and greenest, CPA that I can be….

Filed under: About the Greenest CPA, CPA Exam

April 27, 2009 • 11:38 am 0

When Frugality and Environmentalism Align: Just Say “No” to Vampire Energy Use

The Los Angeles Times.com has a great article on how to save money by cutting out needless electricity usage in your home. Dubbed “Vampire” energy use, I guess because it sucks the energy out of your home, this energy use can be easily thwarted, saving you hundreds of dollars on your electrictiy bill. Examples: all electronics that are turned off, but still plugged in, and your cell phone charger that you keep in the wall 24-7. The article points out ways to curb this (best one: use a power strip that can easily be turned on and off), and how to get a free energy audit of your home.

R and I live in a small, one-bedroom apartment, so many of these tips don’t apply to us (extra refridgerator???), and because of our proximity to the ocean, A/C and heat are non-issues (haven’t used either in 4 1/2 years). But, for the rest of society, there are plenty of great tips. We do utilize a power strip for kitchen appliances, which has been great, since we don’t need the toaster oven plugged in all the time. But after reading this article, I think we need to invest in more power strips, so we can really bring down our energy use.

Filed under: Reduce Energy Use, Vampire Energy

April 24, 2009 • 4:05 pm 0

Examples of Electric Cars for the New Tax Credits

In my previous post, I wrote about the two new tax credits that are in the works for plug-in electric vehicles. My problem with the IRS verbiage – you don’t just need to be a CPA to figure it out, you need to be a physicist! I did some research to bring you some examples of low-speed, four-door vehicles, and came across a great website that shows not only those vehicles, but three-door vehicles; high-speed, four-door vehicles; and concept vehicles in the making. Some of the cars would qualify for the EESA credit, others for the ARRA credit, and a couple for both (but don’t forget, you can’t actually take both!).

Personally, I wouldn’t drive the low-speed or three-door vehicles. But, I live in LA. To me, they sound like a death wish. I prefer the high-speed, four door varities, and if I could afford it, would love to purchase the new Tesla Model S when it emerges. But, I don’t think I could afford it, even after the EESA tax credit. Sigh.

Still, it’s exciting to see the government try to encourage both consumers and manufacturers to spend the hard earned cash in a better way. I know a lot of people consider this socialism, but … well, we could use a teensy bit of socialism right now, couldn’t we?

Filed under: Alternative Energy Transportation, Electric Vehicles, Tax Law

• 1:06 pm 1

Two New Tax Credits in the Works for Electric Vehicles

According to the IRS, there are two new tax credit in the works which could offset the price to plug-in electric vehicles using certain types of batteries, if you purchase in 2009. They were created by the Emergency Economic Stabilization Act of 2008 (EESA) and the American Recovery and Reinvestment Act of 2009 (ARRA).

The credit from the EESA is for vehicles that have at least four wheels, and that draw propulsion using a rechargeable traction battery with at least four kilowatt hours of capacity (technical language alert!) This will result in a 2009 tax credit of $2,500 (min) to between $7,500 and $15,000 (max) – amount depends on the weight of the vehicle and the capacity of the battery.

The credit from the ARRA is for low-speed or two- or three-wheel electric vehicles (scooters) which were purchased after February 17, 2009 and before January 1, 2012. The credit is equal to 10% of the cost of the vehicle, capping out at $2,500. The techie stuff: the vehicle must be either a low-speed vehicle that is propelled to a significant extent by a rechargeable batter with a capacity at least 4 kilowatt hours or be a two- or three-wheeled vehicle that is propelled to a significant extent by a rechargeable batter with a capacity of at least 2.5 kilowatt hours. (Huh?)

The bottom line for both credits: if you buy a low-speed four-wheeled vehicle that is manufactured for use on public streets, roads, and highways (no golf carts, people), it could quality for the EESA credit and the ARRA credit (if purchased after 2/17/09). But, you can’t claim both credits for the same vehicle. More guidance from the IRS to come.

I guess this is good – we need incentives for people to make the switch from gas guzzler to low-impact alternatives. But, the technical wording has me quite confused – sounds like you need to be a physicist to figure out which vehicle to buy. I have no idea what a lot of that propulsion verbiage is all about. Sadly, I would probably buy the wrong thing! I will do some research, and see what type of vehicles actually fall under these categories. Then, we will see if any of them are actually worth owning!

Filed under: Alternative Energy Transportation, Electric Vehicles, Tax Law

April 22, 2009 • 4:00 am 5

Wanted: One Green CPA

Can there be a correlation between passion and utility? Between inspiration and perspiration? Is there a way to make your dream job the same as your day job (and still earn a living)? These are the questions that have been plaguing me as of late. Until recently, I have been focused more on the utility, the perspiration, than the “dream”. As the title of this blog might suggest, that focus has been to become a Certified Public Accountant, and have those three elusive little letters after my name: C.P.A. Now, as I am (hopefully) almost done with that journey (one exam left, and then the long wait for the state of California to grant me my license), I am beginning to realize that I am actually only at the beginning of a long career. And, while I enjoy the general activities of my job, I have started to wonder what I will actually do with that license once I receive it.

Of course, I think that the majority of us would like to serve the “greater good”, in some capacity, throughout our lives. And I am no exception. But, what does that mean: serve the greater good? It sounds so broad, so huge, so impossible to achieve. So, many of us are left stagnant, wondering what one person could actually do to help anyone or anything.

To me, serving the “greater good” would somehow benefit society, whether that is local or global, in either a small way or a large way. (Yeah, that narrows it down, doesn’t it?) But, how does one choose a cause? I think most of us don’t just have one cause that we are passionate about – I know that I don’t. Just to name a few things I wish I could do something about right now: help the poor learn about nutrition, save the polar bears, fix the terrible practices in recycling electronics, solve America’s health care crisis, keep our green spaces from turning into sprawling subdivisions, remind people that they don’t need an SUV to drive to the office….well, I guess the list goes on and on. But, each of these causes all have something in common: the environment.

I can’t help but think that the majority of America’s current, pressing problems are all interrelated. It’s no coincidence that the economy, the health of our citizens, and the environment are all crashing at the exact same time. And, I don’t think we can all sit around and wait for our politicians to get their acts together and fix this. First of all, they need to know it’s something that the voters care deeply about before they will ever make any real strides. Second of all, it really is up to individual responsibility, because it’s going to take a complete change in the mindset of the American people to make any real strides in fixing our myriad of problems.

This brings me back to my original question – can I be both a CPA and work to solve (on any level) the global environmental crisis that we face today? Can business (dare I say it?) actually help the “greater good”? Can I afford a decent standard of living while bringing up the standard of living for others?

This is the question that I will explore in this blog.

As for the title of this blog – The Greenest CPA – do I really consider myself to be the greenest CPA out there? Of course not, not even close. It’s something I would like to aspire to, and like any great goal, is actually much bigger than myself. To me, the idea of the Greenest CPA is an idea of business working with the environment, aiding in the greater good, to create a more sustainable way of life than the one business has been promoting for at least the past thirty years.

Today, on this Earth Day 2009, we stand at the beginning of a change in both thought and attitude, as young and unformed as my career as a CPA. It will be hard for us to make these changes, but I don’t think we will have much of a choice. As our incomes sadly shrink, we may come to see that conserving the environment also helps us conserve what little is left in our savings accounts. As our medical bills become impossible to pay, we may find that eating organically grown fruits and vegetables can stave off so many of the chronic diseases that have become all too prevalent in our lives recently. As our way of life continues to crash around us, we may find that another, more sustainable and healthier way of life, while less grand, is actually a better way to live.

Too optimistic? I hope not. For me, it’s my vision of the future. But, like the majority of Americans, I have a long way to go to get there. In the past two years, my husband and I have been making small steps to try to decrease our impact on the environment, but we have many more small steps to take. I plan to use this blog to help me stay committed to our cause.

I also plan to use this blog to explore how I can make an impact as a CPA, as well as as a citizen. I know that there are ways accountants and business can hurt society and the environment, but I want to make a commitment to be on the other side. I want to use my newly gained technical expertise to make a difference in the right ways. How will I do that? I am not sure yet. But, as I write in this blog, I think that I will get closer to figuring that out.

I hope that I will have enough readers, as time goes by, that people will be able to help me out in my cause, and that I can help and inspire others. I guess you could call this my mission statement.

Happy Earth Day!

Filed under: About the Greenest CPA, Earth Day, Green Philosophy