Accounting
The 2024 Best Firms for Women: Freedom of choice
There are many different ways Accounting Today’s 2024 Best Firms for Women earned the honor of being among the top 10 most female-forward workplaces, but while the individual policies and programs they employ to effectively recruit, retain and advance women vary by practice, two stand out as critical for the highest-ranked firms: flexibility and mentorship.
Both strategies also empower female employees to make critical choices for their personal and professional success.
“Mentorship is so important — it’s just the be-all, end-all these days,” said April Miller, principal at Laurel, Maryland-based Bormel, Grice & Huyett PA, a Best Firm for Women for the third consecutive year, this year ranking No. 3. “So much more focus is on mentorship and training than ever before. It has a lot to do with retaining people and a lot to do with attracting people. Most people want to grow and advance, and we really want to foster that here. It’s more important than anything else.”
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Bormel, Grice & Huyett offers two types of mentors, Miller explained: “a mentor for learning, your work-side policies, procedures, technical help, as people advance and get more experience in the industry, and also a mentor whose primary focus is on career guidance.”
San Francisco-based Realize CPA, No. 5 among this year’s Best Firms for Women but also the highest ranked midsized firm on the list, shares those priorities, with managing partner Minerva Tottie crediting her female staff’s satisfaction to its strong mentorship program and flexible work culture.
All the Best Firms for Women are chosen from the members of Accounting Today’s annual Best Firms to Work For list, which is based on in-depth employee surveys. The Best Firms for Women, among other criteria, garnered positive survey responses from their female employees.
“Providing flexibility for women,” Tottie identified as one of Realize’s strengths. “We have a really strong mentorship program at Realize. Mentorship and flexibility. We usually get women fresh out of college, super eager and ambitious and ready to work. And then life happens: marriage, kids. Having mentors who can help guide them along the work side of things and different changes of life is really important, and we continue to provide that. We don’t want to get them discouraged. Accounting is a hard profession, with the hour requirements, especially on the tax side.”
The Best Firms for Women recognize that the profession’s current talent shortage makes these two principles more vital than ever. To combat the pipeline problem, they have also adjusted for the needs of younger candidates.
“Based on experience, education, and how they are brought in, we have a dedicated coaching and staff development plan that details expectations at each level,” shared Kayla Perry, firm administrator at Boise, Idaho-based B.A. Harris, No. 2 on this year’s list. “We make it clear to staff. This generation asks for complete clarity. They’re not a gray generation but black and white. We provide as much information as possible; the expectations of the next level up and so on. All expectations are provided to them even at an associate level, to see what it takes for a promotion to senior, to manager.”
At the Best Firms for Women, employees also have a choice in mentors and coaches.
“Good mentors, leaders who are also women, who have also been there, can provide guidance,” explained Tottie. “Oftentimes, myself as a partner, I’ll team up with another woman at a supervisor, manager level just so they can feel comfortable bringing up the types of issues they might not otherwise feel comfortable bringing up with men. Some women don’t care, and can be paired up with men or women. We are sensitive to what people need to get far in their career.”
“Any of the partners are always welcoming,” shared Miller. “Sometimes people don’t want to talk to partners, but have [a talk with] managers, principals or peers. There are different groups with different comfort levels of what they want to speak about.”
Bormel, Grice & Huyett also finds value in connecting female new hires with more senior women in the firm.
“We are respectful of the challenges some women face,” Miller said. “Not all women struggle with work-life balance but that is a thing, responsibility in the office plus family … We try to be respectful of women and men having the work-life balance everyone is talking about. Among new hires, we encourage setting up a meeting with a woman at the firm to talk about their experiences. We’ve found that to be really helpful to put candidates at ease.”
Flexibility at the forefront
Staff at all levels continue to value flexibility, both in work hours and location, and in career paths.
“We try to be very flexible to all staff,” said Megan Sunthimer, partner at No. 4-ranked firm C&D, based in Solvang, California. “We see that a lot with women who have kids, trying to be flexible with needs that parents in general have with young kids.”
All the Best Firms for Women stressed that their flexible work policies apply to men and women, with or without children, to maintain the ever-important work-life balance. But many firm leaders also acknowledge the extra burden that can fall on women.
“From personal experience, for quite a few really great female employees, different life things come up, particularly in the accounting industry, that can be pretty stressful at times with other commitments,” said Sunthimer. “They have decided, based off family dynamics and needs, the accounting industry in general: Is that where I want to be, in public accounting? That’s been a struggle in retention, specifically. Recruiting has been a tough few years with COVID and a lot less people entering the accounting industry.”
“Females are typically the default parent when it comes to children,” said Perry. “Whenever there are sick kids, the ability to work remotely at a moment’s notice, they need everyone to be super understanding. The leadership here is two-thirds women, and it really sets a good example for the rest of the staff, that there’s a place in leadership for women. And I think the partners here really empower women and hear them out. A great maternity leave policy also contributes to the satisfaction for women.”
The Best Firms for Women offer hybrid and remote work options, with C&D and Realize both calling for core hours for staff when everyone must be available, with flexibility outside those time frames.
B.A. Harris has also adjusted its mindset around long hours. “As a firm, over the past two years, we have reduced that expectation of hours worked,” said Perry. “It’s more about workload, the projects assigned to you, if you get them done … We allow everyone to set their own schedule, even during busy season. A lot work more, but that’s their decision. If they come in on a Saturday, we buy lunch, and it’s a casual environment with no dress code.”
B.A. Harris also closes the office on Fridays from May 1 through Labor Day to give staff three-day weekends to look forward to during the longer hours of busy season.
Realize recently “beefed up the head count so there is enough people to spread the work around, which is really helpful,” shared Tottie. “A new woman joined not too long ago, from out of state. She said, ‘That’s the best busy season I’ve ever had.’ It breeds loyalty, when you feel rested and good at work.”
Carving new paths
Employees also value choice in career paths, especially women juggling family commitments.
“Each family dynamic is different, each woman’s responsibilities are different,” said Sunthimer. “They might have kids, might be married, might not have a partner. Those hour commitments sometimes can be overwhelming, stressful. It’s OK to have different tracks available. Sometimes you get into public accounting and envision one track of how to move forward, but start to develop other paths. Maybe you have a staff person that can only work 40 hours a week and can’t do overtime. That doesn’t mean you can’t get to the next level. Have different paths available — do not stick to this is how it has always been done.”
Sunthimer and the female leaders at the other Best Firms for Women all have personal experience with these varied trajectories.
“My goal, ever since starting at C&D, was to eventually become partner,” Sunthimer shared. “When I moved to Indiana, I thought that might permanently derail that; we never had a remote partner before. It was a big step for them to take. They really value the experience I bring to the team. Two other employees, both employees working remotely before COVID, both female, they did want to retain them because they valued them so much. The retention of the other female employees is because the firm values everything they bring to the table. When you work for a firm that shows appreciation and values you, genuinely cares about you, as this firm does, it makes you want to stick around.”
Tottie can also relate, having worked at Realize since 2016.
“I absolutely did have mentors,” she recalled. “I have two kids. At one point [I thought] I don’t think I’m going to be able to do it. They allowed me to scale back my workload for a couple of years, which was hugely beneficial. They also reduced pay, and I’m OK with that if it meant I could stay in the game. When the kids were a little bit older, I came back little by little and was able to stay in it. I’m a partner now, and it’s an amazing career.”
“We’re just in general really focused on giving everyone the right guidance,” Tottie continued. “It’s such a great career if you can have, early on, someone to navigate through the challenges, to allow you to stay in the business, allow you to grow, allow you to have empathy skills for other women coming in and growing through the same challenges.”
One of Tottie’s colleagues benefited directly from Realize’s determination to retain the best talent.
“One woman had a baby and felt very strongly — she’s one of our superstars — that she wanted to take half a year off to be with the baby,” Tottie shared. “She’s so good we said, ‘OK. We’re here, we don’t want you to go anywhere, you’re on the partner track.’ It presents a challenge for us to allow that flexibility, but we know long term it’s the right thing to do, we’re in it for the long haul with them. They know that, and it helps a lot.”
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Final regulations now identify certain partnership related-party “basis shifting” transactions as “transactions of interest” subject to the rules for reportable transactions.
The final regs apply to related partners and partnerships that participated in the identified transactions through distributions of partnership property or the transfer of an interest in the partnership by a related partner to a related transferee. Affected taxpayers and their material advisors are subject to the disclosure requirements for reportable transactions.
During the proposal process, the Treasury and the Internal Revenue Service received comments that the
- Increased dollar threshold for basis increase in a TOI. The threshold amount for a basis increase in a TOI has been increased from $5 million to $25 million for tax years before 2025 and $10 million for tax years after.
- Limited retroactive reporting for open tax years. Reporting has been limited for open tax years to those that fall within a six-year lookback window. The six-year lookback is the 72-month period before the first month of a taxpayer’s most recent tax year that began before the publication of the final regulations (
slated for Jan. 14 in the Federal Register). Also, the threshold amount for a basis increase in a TOI during the six-year lookback is $25 million. - Additional time for reporting. Taxpayers have an additional 90 days from the final regulation’s publication to file disclosure statements for TOIs in open tax years for which a return has already been filed and that fall within the six-year lookback. Material advisors have an additional 90 days to file their disclosure statements for tax statements made before the final regulations.
- Publicly traded partnerships. Because PTPs are typically owned by a large number of unrelated owners, the final regulations exclude many owners of PTPs from the disclosure rules.
The identified transactions generally result from either a tax-free distribution of partnership property to a partner that is related to one or more partners of the partnership, or the tax-free transfer of a partnership interest by a related partner to a related transferee.
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The tax-free distribution or transfer generates an increase to the basis of the distributed property or partnership property of $10 million or more ($25 million or more in the case of a TOI undertaken in a tax year before 2025) under the rules of IRC Sections 732(b) or (d), 734(b) or 743(b), but for which no corresponding tax is paid.
The basis increase to the distributed or partnership property allows the related parties to decrease taxable income through increased cost recovery allowances or decrease taxable gain (or increase taxable loss) on the disposition of the property.
The Treasury Department and the Internal Revenue Service proposed new rules for the tax credit for qualified commercial clean vehicles, along with guidance on claiming tax credits for clean fuel under the Inflation Reduction Act.
The
The credit is the lesser amount of either 30% of the vehicle’s basis (15% for plug-in hybrid EVs) or the vehicle’s incremental cost in excess of a vehicle comparable in size or use powered solely by gasoline or diesel. A credit up to $7,500 can be claimed for a single qualified commercial clean vehicle for cars and light-duty trucks (with a Gross Vehicle Weight Rating of less than 14,000 pounds), or otherwise $40,000 for vehicles like electric buses and semi-trucks (with a GVWR equal to or greater than 14,000 pounds).
“The release of Treasury’s proposed rules for the commercial clean vehicle credit marks an important step forward in the Biden-Harris Administration’s work to lower transportation costs and strengthen U.S. energy security,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo in a statement Friday. “Today’s guidance will provide the clarity and certainty needed to grow investment in clean vehicle manufacturing.”
The NPRM issued today proposes rules to implement the 45W credit, including proposing various pathways for taxpayers to determine the incremental cost of a qualifying commercial clean vehicle for purposes of calculating the amount of 45W credit. For example, the NPRM proposes that taxpayers can continue to use the incremental cost safe harbors such as those set out in Notice 2023-9 and Notice 2024-5, may rely on a manufacturer’s written cost determination to determine the incremental cost of a qualifying commercial clean vehicle, or may calculate the incremental cost of a qualifying clean vehicle versus an internal combustion engine (ICE) vehicle based on the differing costs of the vehicle powertrains.
The NPRM also proposes rules regarding the types of vehicles that qualify for the credit and aligns certain definitional concepts with those applicable to the 30D and 25E credits. In addition, the NPRM proposes that vehicles are only eligible if they are used 100% for trade or business, excepting de minimis personal use, and that the 45W credit is disallowed for qualified commercial clean vehicles that were previously allowed a clean vehicle credit under 30D or 45W.
The notice asks for comments over the next 60 days on the proposed regulations such as issues related to off-road mobile machinery, including approaches that might be adopted in applying the definition of mobile machinery to off-road vehicles and whether to create a product identification number system for such machinery in order to comply with statutory requirements. A public hearing is scheduled for April 28, 2025.
Clean Fuels Production Credit
The Treasury the IRS also released guidance Friday on the Clean Fuels Production Credit under Section 45Z of the Tax Code.
Section 45Z provides a tax credit for the production of transportation fuels with lifecycle greenhouse gas emissions below certain levels. The credit is in effect in 2025 and is for sustainable aviation fuel and non-SAF transportation fuels.
The guidance includes both a
“This guidance will help put America on the cutting-edge of future innovation in aviation and renewable fuel while also lowering transportation costs for consumers,” said Adeyemo in a statement. “Decarbonizing transportation and lowering costs is a win-win for America.”
Section 45Z provides a per-gallon (or gallon-equivalent) tax credit for producers of clean transportation fuels based on the carbon intensity of production. It consolidates and replaces pre-Inflation Reduction Act credits for biodiesel, renewable diesel, and alternative fuels, and an IRA credit for sustainable aviation fuel. Like several other IRA credits, Section 45Z requires the Treasury to establish rules for measuring carbon intensity of production, based on the Clean Air Act’s definition of “lifecycle greenhouse gas emissions.”
The guidance offers more clarity on various issues, including which entities and fuels are eligible for the credit, and how taxpayers determine lifecycle emissions. Specifically, the guidance outlines the Treasury and the IRS’s intent to define key concepts and provide certain rules in a future rulemaking, including clarifying who is eligible for a credit.
The Treasury and the IRS intend to provide that the producer of the eligible clean fuel is eligible to claim the 45Z credit. In keeping with the statute, compressors and blenders of fuel would not be eligible.
Under Section 45Z, a fuel must be “suitable for use” as a transportation fuel. The Treasury and the IRS intend to propose that 45Z-creditable transportation fuel must itself (or when blended into a fuel mixture) have either practical or commercial fitness for use as a fuel in a highway vehicle or aircraft. The guidance clarifies that marine fuels that are otherwise suitable for use in highway vehicles or aircraft, such as marine diesel and methanol, are also 45Z eligible.
Specifically, this would mean that neat SAF that is blended into a fuel mixture that has practical or commercial fitness for use as a fuel would be creditable. Additionally, natural gas alternatives such as renewable natural gas would be suitable for use if produced in a manner such that if it were further compressed it could be used as a transportation fuel.
Today’s guidance publishes the annual emissions rate table that directs taxpayers to the appropriate methodologies for calculating carbon intensities for types and categories of 45Z-eligible fuels.
The table directs taxpayers to use the 45ZCF-GREET model to determine the emissions rate of non-SAF transportation fuel, and either the 45ZCF-GREET model or methodologies from the International Civil Aviation Organization (“CORSIA Default” or “CORSIA Actual”) for SAF.
Taxpayers can use the Provisional Emissions Rate process to obtain an emissions rate for fuel pathway and feedstock combinations not specified in the emissions rate table when guidance is published for the PER process. Guidance for the PER process is expected at a later date.
Outlining climate smart agriculture practices
The guidance released Friday states that the Treasury intends to propose rules for incorporating the emissions benefits from climate-smart agriculture (CSA) practices for cultivating domestic corn, soybeans, and sorghum as feedstocks for SAF and non-SAF transportation fuels. These options would be available to taxpayers after Treasury and the IRS propose regulations for the section 45Z credit, including rules for CSA, and the 45ZCF-GREET model is updated to enable calculation of the lifecycle greenhouse gas emissions rates for CSA crops, taking into account one or more CSA practices.
CSA practices have multiple benefits, including lower overall GHG emissions associated with biofuels production and increased adoption of farming practices that are associated with other environmental benefits, such as improved water quality and soil health. Agencies across the Federal government have taken important steps to advance the adoption of CSA. In April, Treasury established a first-of-its-kind pilot program to encourage CSA practices within guidance on the section 40B SAF tax credit. Treasury has received and continues to consider substantial feedback from stakeholders on that pilot program. The U.S. Department of Agriculture invested more than $3 billion in 135 Partnerships for Climate-Smart Commodities projects. Combined with the historic investment of $19.5 billion in CSA from the Inflation Reduction Act, the department is estimated to support CSA implementation on over 225 million acres in the next 5 years as well as measurement, monitoring, reporting, and verification to better understand the climate impacts of these practices.
In addition, in June, the U.S. Department of Agriculture published a Request for Information requesting public input on procedures for reporting and verification of CSA practices and measurement of related emissions benefits, and received substantial input from a wide array of stakeholders. The USDA is currently developing voluntary technical guidelines for CSA reporting and verification. The Treasury and the IRS expect to consider those guidelines in proposing rules recognizing the benefits of CSA for purposes of the Section 45Z credit.
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