In an effort to help our members be "future ready", MACPA has continued its tradition (since 2007) of holding four hour comprehensive professional issues updates for FREE all across the state of Maryland. Tom Hood, CPA, CITP, CGMA leads these engaging and participative sessions and covers the fast changing landscape of the accounting and CPA Profession. This year we added special guest from AICPA PCPS to discuss more resources for CPA firms and a special discussion of the AICPA-CIMA Joint Venture and the CGMA designation. Also included is the groundbreaking new learning system The Anticipatory Organization: Accounting and Finance Edition from Dan Burrus and customized with a group of accounting and finance professionals convened by MACPA and BLI.
7. CPA FIRM TOP ISSUES
DIAGNOSTIC REPORT
FOR MACPA TOWN
HALL
8. American Institute of CPAs®
Private Companies Practice Section 8
Carter Heim, CPA, MST, CFF
HeimLantz, CPAs & Advisors
410-841-557
Carter.Heim@HeimLantz.com
PCPS Superheroes
Jeanie Price, AAAPM
DeLeon & Stang, CPAs & Advisors
301-948-9825
Jeanie@DeLeonandStang.com
9. What is PCPS?
3
• $35/CPA,
max
$700
Add-‐on
firm
membership
secCon
of
the
AICPA
• Passionate
about
providing
firms
support
for:
• keeping
up
with
changes
in
standards/regs
• strategies
in
ploLng
the
firm’s
direcCon
• the
everyday
intricacies
of
running
a
pracCce
PCPS
comprises
of
a
team
of
experienced
CPAs
• This
knowledge
is
foundaConal
to
the
turnkey
tools
and
soluCons
that
PCPS
delivers
PCPS
engages
with
CPAs
to
understand
the
pain
points.
10. PCPS is the Home for Firms at the
AICPA
~
6,300
Firms
and
over
63,000
CPAs
Represented
Sole
PracCConers
2-‐5
CPAs
6-‐10
CPAs
11-‐20
CPAs
21+
CPAs
10
11. PCPS CPA Firm Top Issues Survey
5
• Conducted
biannually
• Gathers
informaCon
from
pracCConers
across
the
country
represenCng
firms
of
different
sizes
• Used
to
understand
the
criCcal
challenges
facing
PCPS
member
firms
12. PCPS
CPA
Firm
Top
Issues
Succession, succession, succession
Client retention and client acquisition remain a priority
Human capital concerns are back — finding and
retaining qualified staff are in the top five for all
firm sizes with more than two professionals
Keeping up with tax laws and new rules and regulations
are the biggest concerns for small firms
Seasonality and workload compression is now a
concern for all firm sizes
Owner/partner accountability and unity remain issues
for larger firms
12
13. THE PCPS CPA FIRM
2013 TOP ISSUES
DIAGNOSTIC
REPORT
Succession
Planning/
Aging
of
Owners
&
Partners
14. PCPS CPA Firm Top Issues
FIRMS
WITH
6-‐10
PROFESSIONALS
FIRMS
WITH
11-‐20
PROFESSIONALS
FIRMS
WITH
21+
PROFESSIONALS
1 FINDING
QUALIFIED
STAFF
1 RETAINING
QUALIFIED
STAFF
1 RETAINING
QUALIFIED
STAFF
2 SUCCESSION
PLANNING
2 FINDING
QUALIFIED
STAFF
2 FINDING
QUALIFIED
STAFF
3 SEASONALITY/WORKLOAD
COMPRESSION
3 SUCCESSION
PLANNING
3 OWNER/PARTNER
ACCOUNTABILITY
&
UNITY
4 RETAINING
QUALIFIED
STAFF
4 BRINGING
IN
NEW
CLIENTS
4 SEASONALITY/WORKLOAD
COMPRESSION
5 AGING
OF
OWNERS/PARTNERS
5 SEASONALITY/WORKLOAD
COMPRESSION
5 BRINGING
IN
NEW
CLIENTS;
SUCCESSION
PLANNING
(TIE)
SOLE
PRACTITIONERS
1 KEEPING
UP
WITH
CHANGES
AND
COMPLEXITY
OF
TAX
LAWS
2 SEASONALITY/WORKLOAD
COMPRESSION
3 THE
EFFECT
ON
FIRMS
CAUSED
BY
NEW
REGULATIONS
&
STANDARDS
4 SUCCESSION
PLANNING
5 RETENTION
OF
CURRENT
CLIENTS
FIRMS
WITH
2-‐5
PROFESSIONALS
1 FINDING
QUALIFIED
STAFF
2 KEEPING
UP
WITH
CHANGES
AND
COMPLEXITY
OF
TAX
LAWS
3 SUCCESSION
PLANNING
4 SEASONALITY/WORKLOAD
COMPRESSION
5 THE
EFFECT
ON
FIRMS
CAUSED
BY
NEW
REGULATIONS
&
STANDARDS
14
16. • 54% without
written plan
• Leadership
development is
among the top
challenges
• 44% of firms
in M&A talks
• Few managing
partners have
ability to hold
partners
accountable
Multi-
Owner
Firms • 94% without
practice
continuation
agreement
• 39% intend to
merge or sell
• Half expect to
sell $1 for $1 of
billings, actual is
likely much less
Sole
Owners
16
Succession Planning
PCPS Succession Survey2
17. Chapters
include:
1. IntroducCon
2. Drivers
of
Change
for
the
CPA
Profession
3. PosiConing
Your
Firm
4. Selling
Your
Firm
5. Merging
Your
Firm
6. Developing
New
Leaders
7. Turning
Out
the
Lights
8. TransiCon
Roles
and
ResponsibiliCes
9. What
is
the
Value
of
Your
Firm
10. Due
Diligence
11. Key
Elements
to
a
Partnership
Agreement
Available
tools
Transfer an
Accounting
Practice
Checklist
Due Diligence
Checklist
Shareholder in
Training
Checklist
Sample Practice
Continuation
Agreement
17
Succession Planning
Succession Planning Guide & Tools3
Available
Tools
18. Succession Planning
Firm inMotion e-Toolkit 4
18
• Expanding
upon
the
CPA
Horizons
2025
Report,
this
toolkit
help
firms:
– Stay
on
top
of
new
and
emerging
trends
– Embrace
generaConal
differences
– ConCnue
to
meet
client
needs
and
expectaCons
• Five
secCons
– Firm
Structure
&
Strategy
– Use
of
Technology
– Clients
&
RelaConship
Building
– Staff
Development
&
Structure
– GlobalizaCon
20. June 2016 at AICPA offices
in New York, NY and Durham, NC
Leadership Training
Develop the full potential of new
and emerging partners by
preparing them for responsibility
and leadership
Who Should Attend?
• Managers on the firm partner track
• New Partners/Owners (five or
fewer years of experience)
• Practice leaders seeking
partnership skills
Succession Planning
Emerging Partner Training Forum
20
21. THE PCPS CPA FIRM
2013 TOP ISSUES
DIAGNOSTIC
REPORT
Human
Capital
Concerns
Finding
and
Retaining
Qualified
Staff
22. PCPS CPA Firm Top Issues
FIRMS
WITH
6-‐10
PROFESSIONALS
FIRMS
WITH
11-‐20
PROFESSIONALS
FIRMS
WITH
21+
PROFESSIONALS
1 FINDING
QUALIFIED
STAFF
1 RETAINING
QUALIFIED
STAFF
1 RETAINING
QUALIFIED
STAFF
2 SUCCESSION
PLANNING
2 FINDING
QUALIFIED
STAFF
2 FINDING
QUALIFIED
STAFF
3 SEASONALITY/WORKLOAD
COMPRESSION
3 SUCCESSION
PLANNING
3 OWNER/PARTNER
ACCOUNTABILITY
&
UNITY
4 RETAINING
QUALIFIED
STAFF
4 BRINGING
IN
NEW
CLIENTS
4 SEASONALITY/WORKLOAD
COMPRESSION
5 AGING
OF
OWNERS/PARTNERS
5 SEASONALITY/WORKLOAD
COMPRESSION
5 BRINGING
IN
NEW
CLIENTS;
SUCCESSION
PLANNING
(TIE)
SOLE
PRACTITIONERS
1 KEEPING
UP
WITH
CHANGES
AND
COMPLEXITY
OF
TAX
LAWS
2 SEASONALITY/WORKLOAD
COMPRESSION
3 THE
EFFECT
ON
FIRMS
CAUSED
BY
NEW
REGULATIONS
&
STANDARDS
4 SUCCESSION
PLANNING
5 RETENTION
OF
CURRENT
CLIENTS
FIRMS
WITH
2-‐5
PROFESSIONALS
1 FINDING
QUALIFIED
STAFF
2 KEEPING
UP
WITH
CHANGES
AND
COMPLEXITY
OF
TAX
LAWS
3 SUCCESSION
PLANNING
4 SEASONALITY/WORKLOAD
COMPRESSION
5 THE
EFFECT
ON
FIRMS
CAUSED
BY
NEW
REGULATIONS
&
STANDARDS
22
23. Human
Capital
Concerns
What
Are
Other
Firms
Doing?
• Hiring
veterans
or
parents
returning
to
the
workforce
• ConnecCng
with
local
schools
and
beginning
an
internship
process
– PCPS
Internship
Quick
Start
Guide6
• GeLng
involved
and
parCcipaCng
on
college
boards
• Providing
flexible
hours
and
telecommuCng
opCons
• Partnering
with
local
firms
and
sharing
CPAs
and
interns
23
24. Human
Capital
Concerns
Finding
Talent
Without
Leaving
the
Office
• PCPS
partnership
with
AccounCngfly
provides
firms
with
virtual
recruiCng
year
round
• Build
a
free
firm
profile
on
AccounCngfly’s
accounCng-‐
specific
online
job
board
• ParCcipate
in
Meet
the
Firms
Week
– October
19-‐23,
2015
– Firms
that
create
profiles
are
eligible
to
parCcipate
for
free
– Internships
and
entry-‐level
jobs
are
promoted
to
all
parCcipaCng
students
that
are
interested
in
working
for
a
local
firm
– Webcasts
promote
parCcipaCng
firms
and
their
open
posiCons
to
candidates
throughout
the
week
24
26. ASSOCIATE
• Learns and
develops technical
competence by
completing a
degree qualification
and working toward
CPA certificate
• Applies self
diligently to learn
and understand
technical skills and
on the job practices
and business
processes
• Researches
technical issues
and participates in
technical
discussions relating
to client
assignments
• Develops an
understanding of
client businesses
SENIOR
• Has technical
competence (degree
qualification) and a
relevant
professional
accreditation
• Has an identified
area to specialize
and refines skills,
knowledge and
expertise
• Applies technical
knowledge and
research in
formulating client
related
recommendations
• Helps to solve
complex business
problems
MANAGER
• Has a general
knowledge and
application of
relevant professional
standards, emerging
laws and regulations
and corporate
governance
requirements
• Refines skills,
knowledge and
expertise as a
specialist in an
identified technical
field and/or industry
• Applies technical
expertise and
interprets laws,
regulations and
standards to
formulate client
related
recommendations
• Solves complex
business problems
SENIOR MANAGER/
DIRECTOR
• Has a good
understanding of
the prevailing
business
environment,
industry and
business processes
• Has a thorough
knowledge and
application of
relevant
professional
standards,
emerging laws and
regulations and
corporate
governance
requirements
• Is a specialist in a
particular technical
field and/or industry
• Abreast of changes
in laws, regulations
and standards and
provides advice on
the impact and
implications to
clients
PARTNER
• Has a thorough
understanding of the
prevailing business
environment,
industry and
business processes
• Has extensive
knowledge and
application of
relevant professional
standards, emerging
laws and regulations
and corporate
governance
requirements
• Is a specialist and
known leader in a
particular technical
field and/or industry
• Actively seeks ways
to apply knowledge,
interpret and
anticipate changes
in laws, regulations
and standards to
provide advice to
clients on the impact
and implications
26
Human
Capital
Concerns
Firm
Competency
Model
(Career
Ladder)8
33. Silver
($X,XXX)
• Preparation of
corporate income tax
returns
• Preparation of
individual income tax
returns for owner(s)
• Corporate tax planning
• Personal tax planning
for owner(s)
• QuickBooks assistance
• Annual financial
statement compilations
• Two meetings with
practitioner
Gold
($X,XXX)
• All silver tier items,
PLUS:
• Semi-annual financial
statement compilations
• Four meetings with
practitioner
• Unlimited telephone
support
• Development of a
company strategic plan
• Evaluation or
development of the
personal financial plan
of the owner(s)
Platinum
($X,XXX)
• All gold tier items, PLUS:
• Quarterly financial
statement compilations
• Full internal control
review and
recommendations
• Strategic planning retreat
for the company
• An estate planning
meeting with the
owner(s) and
development of a
comprehensive
estate plan
33
Seasonality/Workload Compression
Three Tier Pricing
Excerpted from the Pricing Tool in the TCA Toolbox
34. THE PCPS CPA FIRM
2013 TOP ISSUES
DIAGNOSTIC
REPORT
Keeping
Up
Changes/Complexity
of
Tax
Laws
and
Federal/State
Regulations
35. PCPS CPA Firm Top Issues
FIRMS
WITH
6-‐10
PROFESSIONALS
FIRMS
WITH
11-‐20
PROFESSIONALS
FIRMS
WITH
21+
PROFESSIONALS
1 FINDING
QUALIFIED
STAFF
1 RETAINING
QUALIFIED
STAFF
1 RETAINING
QUALIFIED
STAFF
2 SUCCESSION
PLANNING
2 FINDING
QUALIFIED
STAFF
2 FINDING
QUALIFIED
STAFF
3 SEASONALITY/WORKLOAD
COMPRESSION
3 SUCCESSION
PLANNING
3 OWNER/PARTNER
ACCOUNTABILITY
&
UNITY
4 RETAINING
QUALIFIED
STAFF
4 BRINGING
IN
NEW
CLIENTS
4 SEASONALITY/WORKLOAD
COMPRESSION
5 AGING
OF
OWNERS/PARTNERS
5 SEASONALITY/WORKLOAD
COMPRESSION
5 BRINGING
IN
NEW
CLIENTS;
SUCCESSION
PLANNING
(TIE)
SOLE
PRACTITIONERS
1 KEEPING
UP
WITH
CHANGES
AND
COMPLEXITY
OF
TAX
LAWS
2 SEASONALITY/WORKLOAD
COMPRESSION
3 THE
EFFECT
ON
FIRMS
CAUSED
BY
NEW
REGULATIONS
&
STANDARDS
4 SUCCESSION
PLANNING
5 BRINGING
IN
NEW
CLIENTS
FIRMS
WITH
2-‐5
PROFESSIONALS
1 FINDING
QUALIFIED
STAFF
2 KEEPING
UP
WITH
CHANGES
AND
COMPLEXITY
OF
TAX
LAWS
3 SUCCESSION
PLANNING
4 SEASONALITY/WORKLOAD
COMPRESSION
5 THE
EFFECT
ON
FIRMS
CAUSED
BY
NEW
REGULATIONS
&
STANDARDS
35
37. • Health
Care
Reform
Resource
Center
19
• PCPS
toolkit
includes:
• Strategy
checklist
• Customizable
brochures
for
individual
clients
and
small
and
large
business
clients
• Timelines
including
important
provisions
and
effecCve
dates
• ImplicaCons
of
the
law
for
individuals
and
business
clients
• Ways
that
CPAs
can
assist
clients
•
Staff
training
and
client
PowerPoint
templates
Keeping Up
Health Care
37
38. THE PCPS CPA FIRM
2013 TOP ISSUES
DIAGNOSTIC
REPORT
Client
AcquisiAon
and
RetenAon
39. PCPS CPA Firm Top Issues
FIRMS
WITH
6-‐10
PROFESSIONALS
FIRMS
WITH
11-‐20
PROFESSIONALS
FIRMS
WITH
21+
PROFESSIONALS
1 FINDING
QUALIFIED
STAFF
1 RETAINING
QUALIFIED
STAFF
1 RETAINING
QUALIFIED
STAFF
2 SUCCESSION
PLANNING
2 FINDING
QUALIFIED
STAFF
2 FINDING
QUALIFIED
STAFF
3 SEASONALITY/WORKLOAD
COMPRESSION
3 SUCCESSION
PLANNING
3 OWNER/PARTNER
ACCOUNTABILITY
&
UNITY
4 RETAINING
QUALIFIED
STAFF
4 BRINGING
IN
NEW
CLIENTS
4 SEASONALITY/WORKLOAD
COMPRESSION
5 AGING
OF
OWNERS/PARTNERS
5 SEASONALITY/WORKLOAD
COMPRESSION
5 BRINGING
IN
NEW
CLIENTS;
SUCCESSION
PLANNING
(TIE)
SOLE
PRACTITIONERS
1 KEEPING
UP
WITH
CHANGES
AND
COMPLEXITY
OF
TAX
LAWS
2 SEASONALITY/WORKLOAD
COMPRESSION
3 THE
EFFECT
ON
FIRMS
CAUSED
BY
NEW
REGULATIONS
&
STANDARDS
4 SUCCESSION
PLANNING
5 BRINGING
IN
NEW
CLIENTS
FIRMS
WITH
2-‐5
PROFESSIONALS
1 FINDING
QUALIFIED
STAFF
2 KEEPING
UP
WITH
CHANGES
AND
COMPLEXITY
OF
TAX
LAWS
3 SUCCESSION
PLANNING
4 SEASONALITY/WORKLOAD
COMPRESSION
5 THE
EFFECT
ON
FIRMS
CAUSED
BY
NEW
REGULATIONS
&
STANDARDS
39
40. • Educate
—
Preparing
you
(and
staff)
to
understand
and
arCculate
the
value
of
your
tax
services
– Value-‐Centric
Culture
Checklist
ensures
delivery
of
a
consistent
message
from
everyone
in
your
firm
about
the
value
you
provide
clients
– Talking
points
to
overcoming
objecCons
to
fees
• Engage
—
Engaging
with
clients
to
stay
top
of
mind
– CPA
value
and
tax
blurbs
for
the
web
and
client
newslerers
– Tax
planning
brochures
– Extension
brochure
with
FAQs
on
this
filing
opCon
– PowerPoint
on
current
year
topics
• Promote
—
PromoCng
your
firm
to
arract
new
clients
– Sample
client
lerers
– Sample
social
media
posts
40
Client Acquisition and Retention
Tax Practitioners Toolkit23
42. Action Result
Product
Champion
Deadline Completed
1
Examine current margins and
test various price increase
scenarios
Identifies low margin business
and identifies opportunities
for optimizing pricing to
increase profitability;
benchmarks your profitability
[Managing
Partner]
2
Review client base and
determine which clients are
buying on price or value;
determine what clients really
want from your relationship
Identifies clients that may
be undesirable for the firm;
identifies clients that need
more focus to enhance your
value to them
[Firm
Management]
3
Review your clients and
the services you provide.
Determine where you are
providing core services and
where you are providing
valuable services
Identifies opportunities to
provide more client services
to increase profitability
[Firm
Management]
4
Discuss how your firm
develops its pricing in
light of pricing discrimination
Develops justification for high
value market pricing…
[Firm
Management]
42
Client Acquisition and Retention
Pricing & Profitability Strategies Action Plan25
PCPS Practice Growth & Client Service Center
43. THE PCPS CPA FIRM
2013 TOP ISSUES
DIAGNOSTIC
REPORT
Owner/Partner
Accountability
and
Unity
44. PCPS CPA Firm Top Issues
FIRMS
WITH
6-‐10
PROFESSIONALS
FIRMS
WITH
11-‐20
PROFESSIONALS
FIRMS
WITH
21+
PROFESSIONALS
1 FINDING
QUALIFIED
STAFF
1 RETAINING
QUALIFIED
STAFF
1 RETAINING
QUALIFIED
STAFF
2 SUCCESSION
PLANNING
2 FINDING
QUALIFIED
STAFF
2 FINDING
QUALIFIED
STAFF
3 SEASONALITY/WORKLOAD
COMPRESSION
3 SUCCESSION
PLANNING
3 OWNER/PARTNER
ACCOUNTABILITY
&
UNITY
4 RETAINING
QUALIFIED
STAFF
4 BRINGING
IN
NEW
CLIENTS
4 SEASONALITY/WORKLOAD
COMPRESSION
5 AGING
OF
OWNERS/PARTNERS
5 SEASONALITY/WORKLOAD
COMPRESSION
5 BRINGING
IN
NEW
CLIENTS
(TIE)
SUCCESSION
PLANNING
SOLE
PRACTITIONERS
1 KEEPING
UP
WITH
CHANGES
AND
COMPLEXITY
OF
TAX
LAWS
2 SEASONALITY/WORKLOAD
COMPRESSION
3 THE
EFFECT
ON
FIRMS
OF
NEW
FEDERAL
&
STATE
REGULATIONS
4 SUCCESSION
PLANNING
5 BRINGING
IN
NEW
CLIENTS
FIRMS
WITH
2-‐5
PROFESSIONALS
1 FINDING
QUALIFIED
STAFF
2 KEEPING
UP
WITH
CHANGES
AND
COMPLEXITY
OF
TAX
LAWS
3 SUCCESSION
PLANNING
4 SEASONALITY/WORKLOAD
COMPRESSION
5 THE
EFFECT
ON
FIRMS
OF
NEW
FEDERAL
&
STATE
REGULATIONS
44
45. American Institute of CPAs®
Private Companies Practice Section
Owner/Partner Accountability and Unity
Partner Accountability Guide26
45
The Leadership Development Model is a trademark
of and copyrighted by ConvergenceCoaching, LLC.
46. American Institute of CPAs®
Private Companies Practice Section
Owner/Partner Accountability and Unity
CPA Horizons 2025 Toolkit27
46
47. Top
Issues
—
Other
Firm
Concerns
Identity theft and working with the IRS continue to
be a struggle
Technology is rapidly changing and firms are
skeptical about the cloud, security and privacy
CPAs are receiving more requests for third-party
verification letters (comfort letters)
What are you experiencing?
47
48. THE PCPS CPA FIRM
2013 TOP ISSUES
DIAGNOSTIC
REPORT
Financial
Benchmarking
&
Tracking
49. DO
choose
a
benchmarking
survey
DO
understand
the
input
methodology
and
definiCons
– Medians,
Averages
and
Percentages
– FTE’s
DO
realize
regional
differences
DO
strive
to
be
berer
than
average
DO
understand
interacCon
of
KPI’s
DON’T
focus
too
much
on
one
KPI
and
another
suffers
DON’T
set
unrealisCc
goals
Financial Benchmarking & Tracking
Benchmarking Do’s and Don’ts
50. RealizaCon
(net
billed/gross
work
in
process)
– Measure
of
billing
efficiency/profitability
UClizaCon
(billable
hours/total
hours)
– Measure
of
people
management
Average
partner
managed
billing
– Measure
of
partner
leverage
Revenue
per
full-‐Cme
equivalent
– Measure
of
staff
leverage
Billing
and
collecCon
Financial Benchmarking & Tracking
Key Profit Drivers
51. Financial
Benchmarking
&
Tracking
AICPA
PCPS/TSCPA
NaConal
MAP
Survey34
• National results segmented by firm size and region
are available FREE to PCPS members
• Participating firms get access to personalized
results and dynamic benchmarking platform
• Put the benchmarking data to work in your firm
– Analyze costs
– Compare billing rates
– Examine write-downs
59. 91%
Of
firms
expect
to
con[nue
record
hiring
levels
16%
Projected
accoun[ng
job
growth
between
2010
and
2020
73%
Of
investors
express
confidence
in
U.S.
capital
markets
87%
Of
key
decision
makers
say
CPAs
are
valuable
to
their
orgs
Our
Profession
stands
strong
60. Maryland
NaConal
Leadership
1. Lyle
Benson
2. Wayne
Berson
3. Ed
Karl
4. Jody
Padar
5. Tom
Hood
+
Vice-‐Chair
of
AICPA,
Kimberly
Ellison-‐Taylor
CEO
of
NABA,
Jina
ECenne
71. 92% of CPAs
are!
NOT
Future Ready!!
Future Ready is the
capacity to be aware,
predictive, and adaptive of
emerging challenges, tech
innovations, and trends and
changes in business,
population, and social
environment.!
Source: CPA.COM 2014 CPA of
the Future Study!
72. 'If the rate of change on the outside
exceeds the rate of change on the inside,
the end is near.’ – Jack Welch
73.
74. Will your job be done by a machine?
Source: NPR Planet Money, May, 2015
76. ANTICIPATION
Strategic
Thinking
External
Awareness
Vision
ConCnuous
Learning
InnovaCon
CreaCvity
Problem
Solving
PrioriCzaCon
Business
AcumenDecisiveness
Influencng/Persuading
EmoConal
Intelligence
Consensus
Building
CollaboraCon
InspiraCon
Risk
Management
AnCcipatory
OrganizaCon:
AccounCng/Finance
EdiCon
www.blionline.org/ao
Three
Hard
Trends:
1. Government
RegulaCon
2. Technology
3. Demographics
77. Legislative / Regulatory / Standards
Federal
• Tax Due Dates changes
• Mobile Workforce legislation
Federal Regulators
• DOL Overtime Standards
Standards
• Peer Review Future of Practice Monitoring
In Progress
• CPE Standards – due October 1, 2015
• CPA Exam Standards due November 30, 2015
• FASB Not-For-Profit Exposure Draft Comments
78.
79. Mobile workforce
Patent holding companies
* DOL overtime
* Cash basis
* IRS Service Levels
* Top Priorities of Maryland
Managing Partners
80. DOL
ALERT
“The
DOL
will
ask
for
stakeholder
support,
and
will
strongly
encourage
state
boards
of
accountancy
to
consider
more
rigorous
review
of
firms
performing
ERISA
audits
and
examine
how
licensing
requirements
might
play
a
role
in
improving
conCnuing
educaCon
and
boost
quality.
We
believe
the
contents
of
these
lerers
to
be
reasonable
under
the
circumstances.”
-‐
AICPA
Regulatory
Affairs
Stats
from
DOL
Maryland
is
16th
in
#
of
plans/parCcipants/assets
with
282
firms
audiCng
1,614
plans
with
3
million
parCcipants
and
$264.12
billion
in
plan
assets
24%
of
all
audits
and
22%
of
all
plans
81. On April 13th at 11:49pm Supersedeas Bond Bill passed the !
House of Delegates 118 – 19, the last bill to be heard!
82. On January 13th, 2016, the 436th Maryland General Assembly will !
convene its 90-day session and188 legislators (47 Senators and 141 Delegates)
will consider more than 2,500 legislative proposals including the State budget. !
The session concludes “sine die” at midnight on April 10th, 2016. !
Mark Twain famously said, “no man’s life, liberty, or happiness are safe when th
e legislature is in session.” This could not be more true for our Profession.!
84. “Contributory negligence” is negligent conduct on the part of the plaintiff/injured party
contributes to the negligence of the defendant in causing the injury or damage. The Pure
Contributory Negligence Rule is literally a defense which says that a damaged party
cannot recover any damages if it is even 1% at fault. The pure contributory negligence
defense has been criticized for being too harsh on the plaintiff, because even the slightest
amount of contributory negligence by the plaintiff which contributes to an accident bars all
recovery no matter how egregiously negligent the defendant might be. Maryland is one of
only four states (AL, VA, NC, MD) plus DC with this doctrine in place.!
The Trial lawyers are beating the drum for their bill to raise or eliminate the
cap on non- economic damages. See attached from today’s Daily Record.
We are ready for another battle on this at the 2016 Session. "
- Paul Tiburzi DLA Piper & MD Tort Reform Coalition – Nov, 2015!
This opens the door for possible Comparative Fault Legislation
which will result in higher professional liability insurance and
increased #’s of lawsuits – We have defeated this with the
coalition FOUR times 1998, 2000, 2001, 2007!
Defeat Comparative Fault Legislation
85. Legislative / Regulatory / Standards
State Board
• Positioning for Firm Mobility
• CPE tracking and audits
• Proposing Legislation - Peer Review –
Subpoena Power
• Marijuana Industry
State
• Offense
- Supersedeas (Appeal Bond) Caps
- Tax Return Due Dates
• Defense
- Stop Comparative Fault – Liability
- Stop Sales Taxes on Services
- Stop Nullify NDA & Non-Compete
- Stop Excessive Mandatory Leave
86. Federal vs State laws!
State Board Guidance!
Resources: aicpa.org/marijuana!
MD State Board issued guidance – !
October, 2015 at our request !
"The Board compared it to serving gambling or liquor industry an
d verbalized zero interest in pursuing any sanctions to CPAs serv
ing that industry, if legal in the applicable jurisdiction.”"
– MD State Board October, 2015!
87. Senator Brian Feldman, CPA (D- Montgomery Co.) signed on !
to sponsor our Appeal Bond Small Business Cap!
88. CPA
Day
in
Annapolis
–
January
21,
2016
“if you don’t have time to participate in the legislative
process, be prepared to accept the consequences of those
who do.”
89.
90.
91. • Closes loophole for non-CPAs to perfor
m attest services!
• Includes all examinations and AUP !
• with SSAEs (XBRL, sustainability, gree
nhouse gas emissions and SOC report
s!
• Cybersecurity!
SB 536 – HB 878 Passed Unanimously House & Senate April 3, 2015!
92. Those
who
build
great
companies
understand
that
the
ulCmate
throrle
on
growth
for
any
great
company
is
not
markets,
or
technology,
or
compeCCon,
or
products.
It
is
one
thing
above
all
others:
the
ability
to
get
and
keep
enough
of
the
right
people.
-‐
Jim
Collins
War
for
Talent
MACPA
Pipeline
IniCaCves
102. American Institute of CPAs®
The AICPA Proposal:
Joining forces to protect,
promote and grow an evolving
accounting profession
103. American Institute of CPAs®
B&I members comprise approximately 40% of AICPA
membership
• Historically under-served member segment
Seepage
• Many CPAs were turning to B&I and/or leaving profession
• Fewer accounting grads are entering into public accounting
International considerations
• Profession, clients & employers becoming more international
• 66% of the work that AICPA members in B&I performed was
outside of traditional audit, accounting, and tax1
Partner vs. build for B&I value creation to reclaim
leadership in management accounting space
• Identified CIMA as partner1. Business and Industry Executive Committee (BIEC) 2. 2013 AICPA Accounting Trends report
Identified need to better serve members
in business and industry (B&I)
105. American Institute of CPAs®
More can be achieved
By partnering more fully, the AICPA and CIMA believe they can:
Drive greater consistency, quality and relevance of public
and management accounting
Enhance advocacy, speaking with the voice of 600K+
professionals to help shape policies in the public interest
Streamline resources to benefit from economies of scale
and scope
Achieve a broader platform to talk with students,
graduates and professional accountants about CPA and
CGMA
106.
107. American Institute of CPAs®
1 in 3 accounting graduates become CPAs
Sources: NASBA, Bureau of Labor Statistics, Department of Education, AICPA
CPAs: ~550K
Other Accounting
Professionals: ~650K
Accountingprogramgraduates
82K
per
year
42K
Don’t sit
for exam
Accountants and Auditors in the US: 1,200K
Foreign nationals
that return home
14KDon’t pass exam
26KPass exam
2014 data
108. American Institute of CPAs®
Top1 accounting firm talent is increasingly
becoming broader than CPAs
128K
139K
154K
165K
48K
50K
51K
54K
0
20
40
60
80
100
120
140
160
180
2011
2012
2013
2014
#ofProfessionalsandPartners
Thousands
Certified Public Accountants3
Total professionals and partners2
3 Year CAGR = 8.9%
3 Year CAGR = 3.6%
1. 23 of the top 30 accounting firms as reported in the 2015 Accounting Today Top 100 Accounting Firms Report. Seven firms were removed due to missing or incomplete information.
2. Total Professionals as reported in the annual Accounting Today Top 100 Accounting Firms Report from 2011-2014
3. AICPA internal data from member data and surveys
109. Confidential – Internal Use Only 109
U.S. students have greater international
exposure
Source: Institute of International Education
Foreign students studying
annually in the United States
819,644
283,322
Up 41% since 2002
U.S. students studying
abroad annually
Up 76% since 2002
283,322
819,644
110. American Institute of CPAs®
U.S. influence on the international profession
projected to decrease
* Numbers based on organization’s HQ location, with adjustments for ACCA due to global nature and availability of data
Sources: International Accounting Bulletin, IFAC, NASBA, ACCA annual report, AICPA membership
13%
7%
29%
55%
28%
15%
25% 14%
5% 9%
Today's Members Current and Future
Students
2030
Africa and Middle East
Europe and Russia
Americas (without US)
Asia-Pacific
US
111. American Institute of CPAs®
International accounting bodies are
competing for relevance
Merged to form a combined institute in 2013;
effective April 2014
Launched CPA Canada in October 2014,
consolidating the three national accounting bodies
Introduced Chartered Accountants Worldwide to
promote the CA qualification internationally
Signed a mutual recognition agreement with IMA. Agreement dissolved but
continues to operate informally. Recently announced multi-year research
initiative with IMA on future of global profession.
Launched first ACCA accreditation program at U.S. higher education institution,
Pace University
Signed MOU with Institute of Internal Auditors to allow ACCA members to
become CIA certified.
Announced partnership with American University linking ACCA’s qualification
program with graduate coursework
112. American Institute of CPAs®
International accounting bodies are
competing for relevance
The Institute of Singapore Chartered Accountants,
SAICA (South Africa) and SAC (Singapore) have signed
an expression of interest as a first step toward dual
membership.
Launched joint public and corporate sector audit
qualification in April 2015
The Institute of Management Accountants (IMA) partnered
with Penn State University on a curriculum geared toward
accounting careers in industry, consulting, and advisory
services.
The South African institutes (SAICA and SAIPA) in
merger talks
113. American Institute of CPAs®
CIMA is the right partner
World’s largest and leading professional body solely
focused on management accounting
Founded in 1919
227,000 members and students in 179 countries
Strong relationships with employers such as Shell,
Unilever, BP
4-year history of joint venture success
114. American Institute of CPAs®
Together, the AICPA and CIMA further
professionalized management accounting
PerformanceValue & GrowthPositioning
Global interest in the
CGMA brand
Imperial Sponsor at
WCOA 2014
Deepening
relationships with
employers globally
Created Global
Management
Accounting Principles
CGMA Competency
Framework
Growing catalog of
thought leadership on
key business issues
AICPA | CIMA
Competency and
Learning website
CGMA exam in U.S.
CGMA website,
magazine, newsletter,
tools and resources
+150,000 CGMAs
worldwide, with >50k
CPAs holding
designation
Staff exchanges
Collaboration leading
to innovation in public
practice areas
Advocacy
116. American Institute of CPAs®
Next step in the journey
Maintain the two membership bodies – AICPA and CIMA –while
integrating their strategies, management and operations
Deliver better and more relevant resources for members
Strengthen advocacy, speaking with the power of more than
600,000 professionals worldwide on critical issues important to you
Recognize and support public and management accounting as
critical components of the end-to-end accounting profession
Elevate awareness of the CPA and CGMA and the opportunities they
unlock
Requires a membership vote from both AICPA and CIMA
Evolve the existing joint venture into an association that is the
voice of professional accounting worldwide.
120. What
year
is
this
quote
from?
“Our
youth
now
love
luxury.
They
have
bad
manners,
contempt
for
authority;
they
show
disrespect
for
their
elders
and
love
chaBer
in
place
of
exercise;
they
no
longer
rise
when
elders
enter
the
room;
they
contradict
their
parents,
chaBer
before
company;
gobble
up
their
food
and
tyrannize
their
teachers.”
123. TheTop 6 Ways to Create Capacity in
your Firm
• Maximize software & tools you have
• Use the latest and most efficient technologies
• Workflow & Process Efficiency
• Focus on your best ‘A’ clients
• Communicate your services (cross-sell)
• Engage your people
128. Creating the Magnetic Firm
Purpose
Driven
Great
Leadership
Culture
Of Growth
Inspiring
Workplace
Vision, Purpose and
Values based
Transparent and
Inspirational
Leadership
Learning Culture
- Self and Formal
Development
Flexible and Open
Work Environment
Focus on Strengths
and Positivity
Build Consensus
and Commitment
Career & Growth
Orientation –
Career Paths
Work/Life Balance
Inclusive and
Diverse
Leadership
Development at all
levels
Customer focused Coaching and
Feedback
High Performance
– Insight to Action
Anticipatory and
Proactive
Collaborative and
Team based
Effective
TechnologyTools -
mobile
129. Grow
your
people,
grow
your
firm!
Use
learning
as
a
strategic
weapon
in
the
war
for
talent
with
our
BLI
Talent
and
Leadership
Development
Support.
133. Maryland Public Company Collaboration
Top Four Issues
1. Learning & Talent Development
2. Global Structure of Finance
Function
3. Managing Risk & Innovation
4. Insight to Action*
*This started our journey to research the competencies needed for accounting and
finance professionals to provide “insight to action” and shift from reactive to proactive.
145. Tom Hood, CPA, CITP, CGMA
• CPA Practice Adviser Accounting Hall of
Fame
• Named the Second Most Influential in
Accounting by Accounting Today Magazine
2015, 2013
• Top 150 Influencer by Linked-In
• Top 25 Influencers in Learning & HR by HR
Examiner
• Top 25 Public Accounting Thought Leaders
by CPA Practice Adviser
• Working on Learning Management with
AICPA/CPA2Biz, Cloud Curriculum,
Performance Management /XBRL,
Leadership & Generations
CEO
Maryland Association of
CPAs (MACPA)
www.macpa.org
Business Learning
Institute (BLI)
www.blionline.org
http://www.linkedin.com/in/tomhood/
Hood's
greatest
aBribute
isn't
that
he
consistently
glimpses
the
future
more
quickly
than
the
rest
of
us
(though
he
does).
It's
that
he's
able
to
bring
it
back
to
the
present
and
serve
as
its
Nreless,
inspiring
and
effecNve
champion.
– Accounting Today
146. American Institute of CPAs®
Private Companies Practice Section
Visit aicpa.org/PCPS
146
Check out the spotlight section of the PCPS home page,
which highlights other important issues
147. American Institute of CPAs®
Private Companies Practice Section
Index of Links
1. Succession Planning PCPS Succession Resource Center
http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/StrategyPlanning/center/
Pages/default.aspx
2. Succession Planning 2012 PCPS Succession Survey
http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/StrategyPlanning/center/
DownloadableDocuments/SuccessionSurveySoloFullResults.pdf
http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/StrategyPlanning/center/
DownloadableDocuments/SuccessionSurveyMultiFullResults.pdf
3. Succession Planning PCPS Succession Guide & Tools
http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/StrategyPlanning/center/
guide/Pages/default.aspx
4. Succession Planning Firm inMotion e-Toolkit
http://www.aicpa.org/INTERESTAREAS/PRIVATECOMPANIESPRACTICESECTION/
STRATEGYPLANNING/FIRMINMOTION/Pages/default.aspx
5. Succession Planning Transition Continuum and Checklist
http://www.aicpa.org/interestareas/privatecompaniespracticesection/strategyplanning/
firminmotion/firmstructurestrategy/downloadabledocuments/transition-continuum-and-
checklist
6. Human Capital Concerns PCPS Internship Quick Start Guide
http://www.aicpa.org/interestareas/privatecompaniespracticesection/humancapital/
teamrecruitment/recruitingandprospecting/downloadabledocuments/internship-quick-start-
guide.pdf
148. American Institute of CPAs®
Private Companies Practice Section
Index of Links (continued)
7. Human Capital Concerns PCPS Human Capital Resource Center
http://www.aicpa.org/interestareas/privatecompaniespracticesection/humancapital/pages/
default.aspx
8. Human Capital Concerns Firm Competency Model
http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/HumanCapital/
PerformanceManagement/DownloadableDocuments/FirmCompetencyModel.doc
9. Human Capital Concerns Recruiting Brochures
http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/HumanCapital/
DownloadableDocuments/SmallFirmRecruiting.pdf
10. Seasonality/Workload Compression PCPS Publications
http://www.aicpa.org/interestareas/privatecompaniespracticesection/newsandpublications/
pages/default.aspx
11. Seasonality/Workload Compression Client Evaluation Tool
http://www.aicpa.org/interestareas/privatecompaniespracticesection/practicegrowth/
trustedbusadv/downloadabledocuments/clientevaluationtool.xls
12. Seasonality/Workload Compression Client Disengagement Letter
aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/StrategyPlanning/
FirmStrategyandPlanning/Pages/Sample%20Client%20Termination%20Letter.aspx
13. Seasonality/Workload Compression Automated Workflow
http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/QualityServicesDelivery/
149. American Institute of CPAs®
Private Companies Practice Section
Index of Links (continued)
14. Keeping Up Washington Tax Brief
http://www.aicpa.org/interestareas/tax/cpeandevents/pages/washingtontaxbrief.aspx
15. Keeping Up Tax Power Hour
http://www.aicpa.org/interestareas/tax/cpeandevents/pages/taxpowerhour.aspx
16. Keeping Up Tax Practices Resources Webpage
http://www.aicpa.org/INTERESTAREAS/TAX/Pages/TaxHomepage.aspx
17. Keeping Up Tax E-Alert
www.aicpa.org/InterestAreas/Tax/NewsAndPublications/TaxEAlert/Pages/default.aspx
18. Keeping Up Tax Identity Theft Information & Tools
http://www.aicpa.org/interestareas/tax/resources/irsprocedureadministration/pages/
idtheftinformationandtools.aspx
19. Keeping Up Health Care Reform Resource Center
http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/QualityServicesDelivery/
TaxResources/Pages/HealthcareReformToolkit.aspx
20. Client Acquisition and Retention Trusted Client Adviser Toolbox
http://www.aicpa.org/interestareas/privatecompaniespracticesection/practicegrowth/
trustedbusadv/pages/tbalanding.aspx
21. Client Acquisition and Retention Identify & Prioritize Tool
http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/PracticeGrowth/
TrustedBusAdv/DownloadableDocuments/IdentifyPrioritizeTool.pdf
150. American Institute of CPAs®
Private Companies Practice Section
Index of Links (continued)
22. Client Acquisition and Retention Practice Growth
http://www.aicpa.org/interestareas/privatecompaniespracticesection/practicegrowth/pages/
default.aspx
23. Client Acquisition and Retention Tax Practitioners Toolkit
aicpa.org/Career/Marketing/Pages/cpa-value-tax.aspx
24. Client Acquisition and Retention You Are The Value Online Workshop
aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/PracticeGrowth/pages/
youarethevalue.aspx
25. Client Acquisition and Retention Pricing & Profitability Strategies Action Plan
http://www.aicpa.org/interestareas/privatecompaniespracticesection/practicegrowth/
downloadabledocuments/pricing%20profitability%20strategies%20action%20plan.xls
26. Owner/Partner Accountability & Unity Partner Accountability Guide
aicpa.org/interestareas/privatecompaniespracticesection/humancapital/ownerdevelopment/
partneraccountability/downloadabledocuments/partner%20accountability%20guide.pdf
27. Owner Partner Accountability & Unity CPA Horizons 2025 Toolkit
http://www.aicpa.org/interestareas/privatecompaniespracticesection/strategyplanning/
firmstrategyandplanning/pages/pcpscpahorizons2025toolkit.aspx
28. Technical Developments PCPS Invigorate the Focus on Quality Toolkit
aicpa.org/pcps/Quality
150
151. American Institute of CPAs®
Private Companies Practice Section
Index of Links (continued)
29. Technical Developments Center for Plain English Accounting
http://www.aicpa.org/InterestAreas/CenterForPlainEnglishAccounting/Pages/CPEA.aspx
30. Technical Developments Preparation, Compilation and Review Standards
http://www.aicpa.org/interestareas/frc/reviewcompilationpreparation/pages/resources-for-
ssars21.aspx
31. Technical Developments RevenueRecognitionStandard
aicpa.org/revenuerecognition
32. Technical Developments Private Company Financial Reporting
http://www.aicpa.org/interestareas/frc/accountingfinancialreporting/pcfr/pages/financial-reporting-
framework.aspx
33. Technical Developments PCPS Technical Issues Committee
aicpa.org/TICAdvocacy
34. Financial Benchmarking 2014 PCPS/TSCPA National MAP Survey
aicpa.org/mapsurvey
35. Financial Benchmarking & Tracking Tech Success Tracker
http://www.aicpatechsuccess.com/
36. PCPS Communities
aicpa.org/pcps/Community
151