Explore how AI technology is reshaping the accounting industry, focusing on the balance of efficiency and ethics, challenges, and educational initiatives.

The accounting industry is no stranger to technological innovation, and one of the most transformative forces today is Artificial Intelligence (AI). As firms integrate AI into their operations, the tech-savvy accounting professionals are witnessing a paradigm shift in how tasks are executed—ushering efficiency and accuracy like never before.

Integrating AI in accounting resembles the advent of computers in the 20th century, marking a pivotal era where manual bookkeeping was revolutionized. The innovation propelled firms to scale their auditing and compliance services while ensuring data integrity. A prominent example is Deloitte, a leader in leveraging AI for complex data analytics, thereby enhancing their audit quality.

However, as we delve deeper into AI's potential, ethical challenges come forth, often debated in boardrooms. Transparency is a significant concern—specific AI algorithms may operate as "black boxes," obfuscating the decision-making processes critical in financial disclosures. EY’s recent initiative highlights how striving for "explainable AI" remains essential. They are developing frameworks that ensure algorithms are both robust and interpretable, thus maintaining ethical standards in financial reporting.

Data privacy is another critical discussion point. AI systems thrive on data, and in accounting, that data often involves sensitive client information. Firms must reinforce safeguards against data leaks and breaches. Through industry collaborations, KPMG emphasizes strengthening protocols to protect client data from vulnerabilities, echoing the sentiment that with great technology comes the responsibility to uphold client trust.

Adaptability is key, for as AI evolves, so must the professionals managing it. Continuous learning programs are vital for accountants aiming to humanize their AI interactions. A case in point is PwC's AI Academy, designed to upskill practitioners and equip them with tools to complement AI technologies. The initiative signifies how blending AI prowess with human insight creates a competitive edge without losing the quintessential touch of accounting services.

In this rapidly altering landscape, mere adoption of AI is insufficient. Firms must engage in dialogues surrounding ethical AI usage adjusting industry standards and practices accordingly. Creating ethical guidelines, like those framed by the American Institute of Certified Public Accountants (AICPA), can help steer these conversations, ensuring AI serves the best interests of both accountants and their clients.

As technology progressively interlinks with accounting, striking a balance between innovation and ethical practice defines the industry's success. By championing transparency, upholding privacy, and fostering adaptability, accountants can navigate the AI revolution with confidence and integrity.

Explore how AI and machine learning are revolutionizing accounting software, enhancing accuracy, efficiency, and strategic decision-making.

The transformative power of artificial intelligence and machine learning is reshaping accounting practices, providing accountants with cutting-edge tools that enhance efficiency and accuracy. As AI becomes more intertwined with accounting software, professionals are experiencing firsthand the benefits of automation and intelligent data analysis.

Recent developments have seen the introduction of AI-driven features in accounting software that streamline processes once considered cumbersome. For instance, AI assists in automating routine tasks such as data entry and reconciliation, freeing accountants to focus on more strategic activities. These technologies not only reduce errors but also promise faster processing times, leading to significant cost savings.

One illustrative case is the implementation of machine learning algorithms by Deloitte in one of their client engagements. The company implemented a predictive model that helped identify anomalies in financial data, which subsequently decreased the time spent on auditing by approximately 30%. This innovation highlights how AI can complement human judgment with advanced data analysis.

Furthermore, AI-powered analytics offer deep insights into financial patterns, enabling predictive forecasting with greater accuracy. By analyzing historical transactions, machine learning models can anticipate future financial trends, allowing businesses to make informed decisions. These insights are particularly valuable for small to medium-sized businesses looking to optimize cash flows and budget allocations.

As firms adopt AI technology, there are crucial considerations regarding the integration with existing systems. Ensuring data security and compliance with evolving regulations is paramount. The rise in digital transformations also necessitates upskilling professionals to remain proficient in leveraging these new tools.

The trajectory of AI in accounting points toward a future where the human role evolves from traditional number-crunching to strategic advisement and data interpretation. While AI software handles the meticulous tasks, accountants will increasingly focus on adding value through innovative financial strategies.

In conclusion, the integration of AI and machine learning into accounting software represents a profound shift in capabilities, one that enhances operational efficiency and decision-making. As these technologies hold tremendous potential to shape the future of accounting, keeping abreast of the latest software advancements becomes essential for progressive firms.

Explore the impact of AI-powered accounting tools on modern firms, highlighting efficiency and strategic advantages along with challenges and necessary skill developments.

The accounting landscape is rapidly transforming with the integration of AI-powered tools... ...

An article discussing how accounting firms are harnessing AI technology to revolutionize practices, improve accuracy, and enhance security, reshaping the role of CPAs in the process.

In recent years, AI technology has become a pivotal force in transforming various industries, with accounting being no exception. As a frequent contributor to ERP Global Insights and The Progressive Accountant, I've observed a noticeable shift in how CPA firms and financial departments adopt AI tools to streamline processes. This week, the buzz is all about leveraging AI to refine and enhance accounting practices, making them more efficient and insightful.

One might wonder how AI, a concept often associated with futuristic narratives, integrates into an established field like accounting. From automating repetitive tasks to providing strategic insights, AI tools are reengineering traditional methodologies. Major accounting firms, including Deloitte and EY, have been at the forefront, setting the stage for a broader industry-wide integration of AI.

The adoption of machine learning techniques enables accountants to go beyond manual data entry and reconciliation tasks. AI-driven software can quickly analyze vast data sets, identify anomalies, and even predict financial trends. This not only speeds up the process but also significantly reduces human error. It's no surprise that companies are seeing improved accuracy in their financial reporting and compliance.

More importantly, AI in accounting does not just end at automation. With the growing concern of cybersecurity, AI applications are being utilized to fortify financial systems against fraud and breaches. For example, advanced algorithms can detect unusual transaction patterns, allowing firms to act swiftly and reduce the risk of financial fraud – an assurance that stakeholders value immensely.

This trend reflects a growing need for accountants to become more strategic and technologically savvy. As more firms integrate AI-driven solutions, the role of the accountant is evolving from simply being a number-cruncher to a strategic advisor who provides actionable insights. This transition offers immense potential for professionals willing to embrace these technological advances.

Staying ahead in this competitive landscape requires continuous learning and adaptation, something I have consistently seen in firms that are pioneers in AI adoption. For accounting professionals and firms alike, the ability to leverage AI technology will be paramount for sustained growth and competitiveness in the modern economy.

 It is impossible to escape the phrases AI and generative AI. So what does artificial intelligence and genAI mean for providing payroll service>. Is genAI something for processing payroll today or is it something for the future, changes that will come to improve the system? Or is it a little bit of both? Payroll Meets AI takes a look at what providers are offering the market and what will come.

 

 

 

 

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There seemed only one choice in discussing major trends among Mid-Market resellers—the impact of artificial intelligence. At times, it seems the only topic in technology and the Special Report, The Mid-Market Faces the AI Revolution, covers the trend impacting VARs. But there is more than AI going on as private equity investments have an increasing impact in the reselling and accounting firm space. Of course, there is the selection of Bob Scott’s Top 100 VARs itself and this year’s list honors a lot of family names, but also reflects the changing nature of the list.

 

 

 

 

 

 

 

 The pace of technology does not slow down...

If we thought that it would take a breather after the end of the Covid pandemic and the advent of the remote work era, the impact of trends such as artificial intelligence and on-demand pay proved us wrong. If anything, automation promises to keep changes in payroll moving at a fast clip. That should translate into making it easier to calculate and run payroll and have greater accuracy in producing the end result—paying people for their work. This special report—Payroll Big Changes Ahead—looks at the trends impacting this crucial business.   

 

 

 

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To say the broad economic picture is confusing when applied to mid-market reselling would be an understatement.

Many observers expect a recession and some report sales cycles stretching out. Meanwhile, the immediate problem for many firms is a shortage of consultants to handle all the cloud implementations—a recession might send more businesses scrambling for SaaS financial software for more efficient operations. In a world reshaped by the Covid shutdown, remote work drove an accelerated interest in cloud computing. It's a new world in which how the forces interplay is yet to be fully understood.

This year's Special Report for Bob Scott's Top 100 VARs, "A Tougher Road Ahead?" looks at the thoughts of leaders in the channel and in the vendor community about these issues and the trends that have impacted ERP mid-market resellers over the last year. Of course, this report also features 100 reselling firms that have been chosen based on revenue. This year's list includes more than the usual number of newcomers and the expectation is, next year will reflect the continue rapid pace of change in technology and layers.

 

 

 

 

 

 

Jeff Siegel is the owner of Siegel Solutions, an 11-person firm that provides outsourced bookkeeping solutions usingJeff Siegel is the owner of Siegel Solutions, an 11-person firm that provides outsourced bookkeeping solutions usingQuickBooks to over 300 clients. Jeff knows what it takes to grow a business: efficiency of scale, real-time insights thatbuild strong customer relationships, and a secure data environment. He gets all three from Right Networks.

In this ebook, we’ll examine:In this ebook, we’ll examine:

• Why DIY (Do-It-Yourself) accounting systems created forsmall businesses cause undue pain for both small businessowners and for accountants
• How the right cloud-based professional accounting systemcan not only eliminate that pain, but also open up newopportunities for accountants to better serve their clients

Steven Brewer, CPA is the President of Steven Brewer and Company, CPAs, located in Salem, IN. He talked to AccountantsWorld about how he’s grown his accounting practice without needing to increase his number of clients – and how those improvements have eased his tax season crunch.

 

BooXkeeping: How White Label Bookkeeping Services Provide Scalability to Your Firm When it comes to running a business the main thing that every business owner wants to do is sell their products or services, create brand awareness and generate profits that they can enjoy later in life. The last thing a business owner wants to do is to worry about bookkeeping, taxes, and the rest of time consuming accounting tasks needed to run a successful business, with limited resources and time, often the bookkeeping ends up being the last on the list of things that need to be completed.

Explore the major changes in the 2023 tax code and how these updates affect tax professionals in optimizing compliance and financial strategies.

Tax professionals are gearing up for significant shifts as the 2023 tax season unfolds, bringing with it crucial updates to the tax code. Staying abreast of these changes is essential for accountants and tax advisors who aim to provide their clients with the most accurate guidance and compliance strategies. Here's what you need to know about the latest tax code developments.

One of the most notable changes this year is the adjustments in individual tax brackets. The IRS has modified these brackets to account for inflation, a move that directly impacts take-home pay calculations and tax liabilities for millions of Americans. With inflation rates fluctuating significantly, these adjustments will play a key role in determining taxpayers' obligations. Accountants must revisit clients' previous tax strategies to align them with these new thresholds.

In addition to changes in tax brackets, the standard deduction has also increased. For single taxpayers, the deduction rises to $13,850, while married couples filing jointly can now deduct $27,700. This increase is part of a broader shift aimed at providing taxpayers with more disposable income. Tax professionals should leverage these adjustments to optimize their clients' tax outcomes, especially those who have traditionally itemized deductions.

Another critical update concerns retirement contributions. The cap for 401(k) plan contributions has increased to $22,500, while catch-up contributions for those aged 50 and older have bumped up to $7,500. These changes present opportunities for tax professionals to advise clients on maximizing their retirement savings and potentially reducing their taxable income.

Business tax provisions have also seen alterations, including modifications to the limitations on business interest expenses and the extension of certain tax credits. The Enhancements to the Research & Development (R&D) Tax Credit provide incentives for businesses investing in innovation. Keeping up with these changes is vital for corporate accountants who must navigate tax roles and refunds effectively.

Moreover, the IRS has rolled out updates to the tax filing system, including improvements to online filing processes and enhanced cybersecurity measures to protect taxpayer information. Accountants are advised to familiarize themselves with these new protocols to ensure seamless and secure filing experiences for their clients.

As the industry continues to adapt to these updates, the role of accountants becomes increasingly crucial. They must not only interpret the new code but also anticipate how these changes may influence their clients' financial strategies. Continuous education and embracing digital tools for tax planning and compliance are more important than ever.

Navigating the dynamic landscape of tax regulations requires vigilance, adaptability, and strategic foresight. As we move further into 2023, staying informed on these updates will empower accountants to help their clients maintain compliance and optimize financial outcomes.

Explore key insights for accountants amid the 2023 tax season, including digital transformation, tax credits, and global compliance.

Tax season is upon us, and 2023 brings both familiar challenges and new opportunities for accountants seeking to optimize their client services and compliance strategies. Amid changing regulations and a fluctuating economic environment, savvy professionals must remain vigilant and adaptive.
One of the most significant shifts this year is the increased emphasis on digital transformation. The IRS continues to advance its efforts towards digitizing tax processes, encouraging both individuals and businesses to embrace electronic filings. For accounting firms, this means investing in robust tax software solutions that can handle complex returns with greater accuracy and speed. Enhanced data analytics tools are becoming indispensable in identifying trends and potential red flags before they become problematic.
Another focal point for 2023 is managing clients’ expectations regarding deductions and credits. With recent legislative changes impacting various tax credits—such as the Earned Income Tax Credit (EITC) and Child Tax Credit—accountants must stay updated on these amendments to provide accurate advice. Clients will likely have questions about eligibility and how they can maximize these benefits.
Sustainability and corporate responsibility have also entered the tax conversation this year. The introduction of green incentives, including tax benefits for energy-efficient home upgrades and electric vehicle purchases, prompts accountants to educate clients on leveraging these opportunities. Engaging with environmentally conscious practices not only benefits the planet but can also result in significant financial savings.
International tax compliance remains a critical consideration as globalization continues to affect business operations. New treaties and trade agreements could alter obligations, and firms need to ensure they are compliant with foreign tax laws. Developing expertise in international tax regulations will be beneficial as businesses expand and cross-border transactions increase.
As we navigate 2023, the integration of AI and machine learning in tax preparation presents both a challenge and an opportunity. While AI offers improved efficiency, accountants must balance technology use with their unique human insights and personalized client interactions.
Now more than ever, continuous education is vital for staying competitive in the field. Workshops, webinars, and certification programs offer valuable learning opportunities that can help accountants keep pace with industry changes and client needs. Remaining proactive in professional development will be crucial for navigating this dynamic tax landscape successfully.

Explore the top tax trends for accountants, including AI adoption, shifting regulations, and the rise of sustainability-focused tax policies.

Navigating the complexities of tax regulations remains a paramount task for accountants as we advance through 2023. With legislative changes and technological advancements, understanding emerging tax trends is critical for practitioners eager to deliver value to their clients.

**Embracing AI and Automation in Tax Compliance** As the world increasingly leans toward digital transformation, the tax industry is witnessing a surge in the integration of AI and automation tools. These technologies have become indispensable, streamlining processes such as data entry, compliance checks, and even fraud detection. By adopting these tools, accountants can reduce manual errors and focus more on strategic advisory roles, enhancing client satisfaction and service delivery.

**Shifting Regulations and Their Implications** This year brings a wave of regulatory changes, impacting federal and state tax codes. It's crucial for accountants to stay informed about new laws and compliance requirements to guide businesses accurately. Noteworthy is the growing emphasis on transparency and reporting obligations, prompting firms to rethink their strategies for data management and disclosure. Staying updated with these changes ensures that firms remain compliant and avoid potential legal pitfalls.

**Sustainability and Green Tax Policies** Governments worldwide are introducing incentives for businesses that adopt sustainable practices. Accountants must familiarize themselves with available green tax credits and deductions, guiding businesses to not only reduce their tax liabilities but also contribute to environmental preservation. 2023 has seen an acceleration in such policies, allowing firms that prioritize sustainability to enhance their financial and social standings.

**Remote Work and Cross-Border Taxation Considerations** The hybrid work model continues to be a prominent feature post-pandemic, bringing along intricate tax challenges. Businesses must navigate residency requirements, cross-border tax implications, and tackle the complexity of payroll taxes for remote employees. Accountants play a pivotal role in unravelling these complexities, ensuring that firms adapt seamlessly to the evolving workspace dynamics.

**Ethical Standards and Data Security** With increased digital interactions, the importance of maintaining data integrity and safeguarding client information cannot be overstated. Tax professionals are expected to uphold the highest ethical standards, integrating robust cybersecurity measures to protect sensitive data against breaches. This not only preserves the trust of clients but also aligns with regulatory expectations for data protection.

Staying ahead in the tax realm necessitates continuous learning and adaptation to the ever-changing landscape. Accountants armed with knowledge of these trends will be better positioned to navigate challenges and deliver exceptional service to clients in the digital age.

Explore essential tax planning strategies for the 2024 tax year. Stay ahead with updated tax laws, retirement planning, tax-efficient investments, and more.

The arrival of 2024 brings with it a fresh slate for tax planning and a host of opportunities for accountants to optimize the tax outcomes for their clients. As we delve into the new tax year, there are several strategies that accountants should prioritize to stay ahead in a continually evolving landscape.

Embrace Changes in Tax Legislation

It's vital for accountants to stay informed about new tax laws, credits, deductions, and any phased-in regulations from previous years. The most effective tax planning strategies incorporate the latest legislative changes, enabling accountants to optimize their clients' tax liabilities while ensuring compliance.

Focus on Retirement Planning Strategies

Retirement planning remains a cornerstone of tax strategy. Accountants should encourage clients to maximize contributions to retirement plans such as IRAs and 401(k)s. The 2024 contribution limits have been adjusted for inflation, providing more room to save tax-efficiently. Additionally, Roth conversions can be a significant strategy this year, especially if clients expect higher future tax rates.

Utilize Tax-Efficient Investing

Tax-efficient investment strategies can significantly reduce a client's tax burden. Accountants should advise clients on the benefits of tax-loss harvesting, asset location (placing investments in tax-advantaged accounts), and selecting tax-efficient funds. These strategies can enhance after-tax returns, making a substantial difference over the long term.

Employ Income-Shifting Techniques

Income shifting strategies, such as gifting income-producing assets to family members in lower tax brackets or employing children in the family business, can help reduce overall tax liabilities. With the Gift Tax Exclusion for 2024 being $16,000, it allows for more flexibility in transferring wealth tax-efficiently.

Review Estate Planning Documents

As part of a comprehensive tax strategy, accountants should work with clients to review and update their estate planning documents. The Federal Estate Tax Exemption remains at $12.92 million in 2024, providing a significant opportunity for wealth transfer planning. Establishing trusts, making charitable contributions, and using life insurance policies effectively are critical components of a solid estate plan.

Stay Ahead with Technology

The role of technology in tax planning cannot be overstated. Advanced tax software, data analytics, and automated financial tools can streamline the tax planning process, improve accuracy, and provide deeper insights. Accountants should invest in the latest tax technology to enhance their service offering and deliver better outcomes for clients.

As accountants gear up for the 2024 tax year, integrating these essential tax planning strategies will not only optimize their clients' tax situations but also position their practice as a proactive and informed partner. Keeping abreast of legislative changes, leveraging technology, and adopting innovative strategies are key to navigating the complexities of the modern tax landscape.

The Internal Revenue Service today has named Elizabeth Askey as the chief of the IRS Independent Office of Appeals, which resolves tax disputes between taxpayers and the IRS.

Askey has served as deputy chief of Appeals since December 2022 and acting as head of Appeals since April. The office employs about 1,750 individuals nationwide.

Appeals is independent of the IRS compliance functions, including the examination and collection areas that make tax assessments and initiate collection actions.

Askey joined the IRS Office of Chief Counsel in 2019, serving as Deputy Division Counsel (International) for the Large Business and International Division. Prior to joining, she served as an attorney-advisor and associate tax legislative counsel in the Office of Tax Policy at the Department of the Treasury from 1999 through 2002.

Bill has hired Mary Kay Bowman as EVP of payments and financial services. She joins the executive leadership team and reports to CEO Rene Lacerte.

 

Bowman spent four years at Visa and was most recently he head of global buyer, seller and platform product  and solutions from January 2020 through December 2022.

 

She also spent 11 years overseeing Amazon’s global payment acceptance, issuance, and gift card programs and led global payments for Digital River.

 BerryDunn, a CPA firm based in Portland, Maine, has named new practice group leaders, directors and principals.

The practice leaders include CPA and principal, Dave Erp, who has served as tax practice group leader, and was promoted to commercial practice group leader. principal and PMP Dan Vogt was named management and IT consulting practice group leader.

Those promoted to director were CPA Tyler Waldrupe, who was made director of tax services, will lead the technical development of the tax team and recruitment efforts Lindsay Doak, an MBA, was selected as director of healthcare research and education.

Individuals promoted to principal were the following:  Katharine Balukas, CPA, in the not-for-profit practice group; Mary Dowes, CPA, in the healthcare practice group; Chris Mouradian, CPA, in the healthcare practice group; Jodi Reynolds, CPA, in the commercial practice group; Ryan Warren, CPA, in the commercial practice group.

BerryDunn also promoted Julie Sullivan, CCP to principal of the state government consulting practice group, and Tucker Cutter, COBIT, to principal of the management and IT consulting practice group.

CBIz has named Donna Mirandola as its chief marketing officer. She replaces Mark Waxman, who retired at the end of 2023, after more than 22 years with the firm.

Mirandola joined the firm from Aon, where she worked for nearly nine years. She was most recently Aon’s CMO, growth marketing, a title she held for two years 10 months.

Her experience there included three global VP roles, including global external communications, global content and digital marketing and field marketing and communications.

Explore the complexities of sales tax compliance, including trends in audits and leveraging technology for accurate tax solutions.

Sales tax compliance can often be a daunting aspect of running a business, especially as tax laws continue to evolve.

With the rise of e-commerce and interstate commerce, staying compliant with diverse state and local tax regulations requires vigilance and sophisticated accounting practices. Recent trends indicate a shift toward increasing audits and enforcement measures by state tax authorities. This trend can mainly be attributed to the need for states to recover lost revenue due to increased online transactions and economic uncertainties. For accounting firms, it is crucial to aid clients in understanding the implications of sales tax nexus, which obligates businesses to collect and remit sales tax in states where they have a significant presence or economic activity.

Leveraging technology is essential in meeting the demands of the current tax landscape. Sales tax automation solutions are being adopted by many firms to ensure accuracy and efficiency in tax calculations, filings, and record-keeping. These technologies not only help in maintaining compliance but also reduce the risk of errors and potential penalties. Moreover, continuous education and training on state-specific tax laws and updates are fundamental for professionals engaged in sales tax compliance. Many state tax agencies offer resources and workshops that can be valuable for keeping up with the latest changes and best practices.

For firms, guiding clients through the intricacies of multi-jurisdictional tax compliance not only adds value to their service offerings but also enhances client relationships. Proactively reviewing and advising on sales tax obligations can shield businesses from unexpected liabilities and audits. Overall, accountants and firms need to prioritize and streamline their methodologies for tackling sales tax compliance. Staying abreast of legislative changes, adopting innovative solutions, and fostering a culture of continuous learning will be pivotal for success in navigating the complexities of sales tax laws.

 Avalara has introduced Avi, a generative AI chatbot, available on the Avalara Global Support Portal and the Avalara Portal product interface.

“Avi provides conversational support to help customers and partners find answers and resolve issues faster and easier,” the sales tax software company said in prepared statement.

Avalara trains Avi on its knowledge base and the chatbot constantly learns from its experiences, which Avalara said enables Avi to provide faster answers to product questions, assist in troubleshooting common issues, and offer direction to additional resources.

Avalara said additional new AI-driven products will be available soon.

Avalara has established a online portal of a key part of its new partner program. 

The indirect tax company say the Avalara Partner Portal, provides access to such services as technical support, sales and marketing resources and the engagement desk. 

In its statement, Avalara said, “Partners have access to a richer portfolio of financial incentives that allow them to reach their full potential when bringing opportunities to Avalara.” Other incentives include co-marketing and training.

The company’s channel is comprised by accountants, consulting partners, and technology partners who participate through three primary methods: referring, expanding services and building integration

States are reducing transaction thresholds for tax online goods and services, according to Avalara Tax Changes 2024 special report. 

Driven by the volume of inexpensive goods that could be taxed, the change is likely to be assisted by the Streamlined Sales and Use Tax Governing Board which is encouraging members to elimination transaction thresholds.

“The SST states are the majority of states that have a transaction threshold,” Scott Peterson, Avalara’s VP of government relations, and former Executive Director of SST, said in a prepared statement. “If they get rid of it then very few states will have it.” 

Peterson notes that since the Wayfair decision from the U.S. Supreme Court gave states the right to tax online sales from companies outside their borders, states have realized there are many very inexpensive products which produce an amount of tax less than the cost of compliance.

Fourteen states—largely south and southwestern—never imposed thresholds: Alabama, Arizona, Florida, Idaho, Kansas, Mississippi, Missouri, New Mexico, Oklahoma, Pennsylvania, South Carolina, Tennessee and Texas.

Another ten estates—heavily northern—have reduced thresholds California, Colorado, lowa, Louisiana, Maine, Massachusetts, North Dakota, South Dakota, Washington and Wisconsin