What will 2019 bring?Posted: January 7, 2019
What will 2019 bring?
First off, the new lease standard is in effect for public companies and the revenue standard is now mandatory for private companies. And the big changes aren’t over. While the biggest changes from the new financial instruments and credit loss standards are reserved for companies in the financial services industry, all companies will have to spend time in 2019 preparing to deal with some aspect of the changes required by the standards.
2019 will also be the first year of filing taxes under the new rules passed at the end of 2017. There will be a lot of confused taxpayers learning that previous deductions are no longer allowed or necessary. Seeing that doubled standard deduction in an actual return will make many people realize that tracking interest expense, state taxes and charitable deductions is no longer needed. At first, people might be upset, but once they realize that completing their taxes is easier, I think many people will find even more to like about the tax changes.
Of course, CPAs won’t be dealing with those easy tax returns. CPAs provide services to clients with more complex tax situations and personal businesses. They will be dealing with new depreciation rules, new limits on interest deduction, operating loss deduction changes, and new BEAT and GILTI rules impacting any business that operates internationally, which, of course, can be almost any business in our connected world these days.
The audit report will change to include Critical Audit Matters or CAMs. The concept of providing more information about the audit has been implemented in other countries to considerable success. CAMs bring increased relevance to the audit report and have the beneficial side effect of increasing pride in the auditors themselves.
And finally, financial planners will likely have to deal with increased volatility and spooked clients in 2019. The markets ended 2018 in one of the most volatile times in the past decade and 2019 looks to pick up where 2018 left off. Financial planners will definitely be earning their money this year keeping clients calm and invested for the long haul.
2019 will definitely be “interesting times,” but that is what makes being a CPA such fun.