RI Accounting Firms Credit Industry's New Law to Sen.DiPalma

Sen. Louis DiPalma (D-Dist. 12, Middletown, Newport, Little Compton, Tiverton) was recently credited by the Rhode Island Society of Certified Public Accountants (RISCPA) for sponsoring a new law that will help smaller accounting firms be more competitive with larger firms, both in Rhode Island and across the country. Sen. DiPalma introduced legislation during the recently completed 2011 session of the General Assembly that would require CPAs to need only own a simple majority of the equity in CPA firms, as opposed to the two-thirds requirement that was demanded in the past. The measure, signed by Gov. Chafee on May 27, is the law in 43 other states.

According to RISCPA, the measure is important because it allows smaller firms, who do not have the resources or income of larger firms, to attract and keep top tier talent with non-CPA expertise. Smaller firms can now be more competitive with those larger firms by offering non-CPA employees equity ownership in the firm, in addition to their salaries. The legislation aligns Rhode Island law with the national Uniform Accountancy Act (UAA). The legislation also was unanimously endorsed by the State Board of Accountancy.

“I introduced this bill as an economic development initiative,” said Sen. DiPalma. “Anything we can do to help create jobs and opportunities, particularly in small businesses, is something I want to support.”

Robert A. Mancini, Executive Director of RISCPA, said, “Senator DiPalma was a key leader on this initiative that will greatly help the small business community. It’s often difficult for smaller CPA firms to compete solely on the basis of salary, but giving them the ability to offer their non-CPA employees equity in a firm will be a huge asset.” 

Martha Conn Hultzman, President of RISCPA, added: “As accounting firms continue to perform a variety of new services for their clients, many of which are performed by non-CPAs, it was essential that this measure be passed. Sen. DiPalma recognized that, and we praise him for his efforts.”

The Rhode Island Society of Certified Public Accountants (RISCPA) is the statewide professional membership association exclusively for CPAs. RISCPA has a current membership of 1,800 individuals in public practice, in business and industry, in government, and in education. To learn more visit www.RISCPA.org.