Greg Nowak, Partner, PricewaterhouseCoopers LLP, State Tax Consulting

Greg Nowak definitely leads a busy professional and personal life that many would consider hectic. He is one of Michigan’s leading experts on state and local tax issues. As a partner in the PricewaterhouseCoopers LLP Detroit office, he leads the firm’s state and local tax consulting practice. In fact, he was one of the major contributors in the development and subsequent approval of the Michigan Business Tax. His dedication to the CPA profession is evidenced by his service as secretary of the MACPA Board of Directors and past chairman of MACPA’s State and Local Tax Committee. Although Greg is often found either dealing with complex client tax matters, traveling around the state to inform others on state and local tax issues, working with government leaders on tax law reform, volunteering with Habitat for Humanity, or spending rare quality time with his family, he considers his life as anything but taxing.

What made you decide to go into the accounting profession?

I went directly to law school at Wayne State after receiving my undergraduate accounting degree at MSU. I honestly wasn't sure if public accounting was the direction I wanted to take at that time. With the combination of degrees, a career in tax in the public accounting profession was very attractive, and I went to work for a "big eight" firm, Ernst and Whinney. I left after a few years and worked as a state and local tax associate at the law firm Miller Canfield. However, I found accounting firms held several advantages over law firms in their tax practices, especially for multistate tax. So, I returned to public accounting with PwC and I'm still here today.

What makes going to work every day fun and exciting?

The number one thing is the people. Working with bright, energetic professionals in a team environment makes the job fun. It’s one area where public accounting has advantages over a law firm because in that setting, you might have, at most, one partner and one or maybe two associates on a matter. In contrast, our CPA firm may have a team of four, six or 10 working on projects.

The other aspect that makes it exciting is the variety. I rarely have a day where I don't address several client issues. The variety keeps things interesting.

Explain any obstacles you had to overcome to get to where you are today.

It was tough deciding to leave an excellent law firm like Miller Canfield and return to public accounting. I'm still very close with my former colleagues, but I think I made the right decision. Another challenge was becoming a partner at PwC. I was very fortunate that things worked out for me in that respect. The other challenges I've faced are to balance the various responsibilities I have, including husband, father, PwC partner, MACPA officer, Detroit Chamber tax committee chair, Habitat for Humanity volunteer, etc. The challenge is to manage all of these competing priorities and ensure that I'm delivering on all these responsibilities. I just do the best I can from day to day to keep everybody happy!

You were very influential in the creation and approval of the Michigan Business Tax (MBT). Briefly explain your view on what will be the overall impact of the MBT on Michigan business since it took effect on January 1.

I'm convinced it will make Michigan more competitive. There are still a number of technical issues and legislative "tweaks" to work through and we are starting to get busy with that. I'm convinced the overall effect of the shift away from the SBT, the elimination of roughly half of the personal property tax, and the creation of the wage, investment and R&D credits under the MBT, will improve Michigan's business climate and encourage companies to locate and expand here.

You have also conducted several educational and informational sessions on the MBT, as well as other topics, at various MACPA programs and events. How do you feel your practical (firm) experience enhances your ability to effectively convey your message to other accounting professionals?

I'm in the same position every day as many of the professionals that I've addressed in these presentations. I'm taking a set of very unique and complex tax laws and communicating how it works to clients who are just now starting to focus on it. I've been doing state and local tax for most of my career and a lot of that work has involved translating the complex into the understandable. The Michigan law changes are dramatic, but at the end of the day I am helping my clients deal with those laws in the same way that I help them deal with the complex laws in every other state. There are no shortcuts, you just need to study it and analyze it to the best of your abilities.

Why is it so important to educate and inform your accounting colleagues, as well as the general public, about state and local tax matters?

State taxes represent over half of the total business tax burden. This percentage may grow larger as the federal government continues to reduce its funding of state level programs and shifts more of these burdens to the states. Also, there are 50 state jurisdictions and thousands of local jurisdictions each with their own sets of laws, in contrast to a single set of federal laws. This makes the challenges of complying at the state level in many ways much more substantial than complying at the federal level.

What has been your most meaningful volunteer experience?

That's a tough one. The efforts I've made helping to develop Michigan's tax structure are very important, and hopefully will contribute to the future prosperity of the state. I am passionate about Michigan and helping to restore its economic vitality. However, I am also very involved with Habitat for Humanity, and lead a significant and growing relationship that PwC has established with Habitat for Humanity-Detroit. I am passionate about this cause on a different level because it directly and tangibly benefits the lives of individuals in the City of Detroit. Unlike helping with tax policy, the benefits of helping improve housing conditions in the city are much more tangible and measurable. Habitat is a fantastic organization and I am proud that PwC has been able to sponsor houses in the past two years. We will continue to grow our involvement with this wonderful organization.

What interests or activities are you involved in outside of work?

I am a boater and my family really enjoys spending time on the water. I am also a hunter, fisherman and golfer who struggles to find time to enjoy these other pursuits. My family is very important to me and spending time with them is my first priority.

How do you balance your personal and professional life?

PwC is a great place to work to maintain work/life balance. It's not about working less hours, but about flexibility, and that includes taking full advantage of the technology tools we have available to stay connected and minimize the amount of time spent in airports, on the road and at the office.

What advice would you have for those considering entering the CPA profession?

First, get the CPA exam out of the way as soon as you can. The new structure is great, but it can also cause procrastination. The CPA credential is incredibly valuable and the sooner you complete the exam after you get out of school (or even before) the better off you will be.

What do CPAs need now to be successful in the future?

Today, being a CPA is about a lot more than accounting and auditing. These fundamentals are still at the core, but CPAs play diverse roles in consulting, business and government. In my mind, being a CPA today is not about numbers, but about understanding financial concepts and principles, and then applying them to help an organization succeed. So, a successful CPA needs to understand how business works in a more holistic way than other business professionals. I think seeing the big picture is a real key to success.