MACPA's CEO, Tom Hood recently named as the fourth most influential person in the Accounting Profession by Accounting Today Magazine is back on the road for the tenth year offering a key update on the trends, issues and opportunities facing CPAs. These engaging and interactive town halls are the cornerstone of the MACPA's "free CPE" initiative that provides members with 24 hours of high quality CPE with their membership.
Tom offers his perspective and insights on the latest mega trends of technology (mobile, social, cloud) and the fast-changing legislative & regulatory environment. He covers the global, national, and Maryland landscape in an effort to help MACPA members thrive in a rapidly changing environment.
7. What CPAs think about the future
30 Future Forums
1,000 CPAs
Identified these top trends
http://www.bizlearning.net/live/i2afutureforums
8. The Black Swan Lives
An event that is a surprise to
the observer, has a major
impact, and often
inappropriately rationalized
with the benefit of hindsight.
Author: Nassim Nicholas Taleb
8
9. The
Top
100
Most
InfluenFal
• AICPA
• SEC
• PCAOB
• MACPA!
• IRS
• Ron
Baker
–
Value
Pricing
• FASB
• Gary
Boomer
–
Tech
Guru
• The
next
president
• IASB
10. PrevenFng
the
future
“Black
Swan”
• Technology
– The
Cloud
– Big
Data
– Mobile
– Social
• Emerging
Leaders
&
Influencers
• Regulators
• How
to
thrive
amidst
the
chaos
11.
12.
13. Digital Information
Created, Captured, Replicated Worldwide
Exabytes
1,800
1,600
1,400
10-fold DVD
1,200
Growth in 5 RFID
Digital TV
1,000 Years! MP3 players
Digital cameras
800 Camera phones, VoIP
Medical imaging, Laptops,
600 Data center applications, Games
400
Satellite images, GPS, ATMs, Scanners
Sensors, Digital radio, DLP theaters, Telematics
200 Peer-to-peer, Email, Instant messaging, Videoconferencing,
CAD/CAM, Toys, Industrial machines, Security systems, Appliances
0
2006 2007 2008 2009 2010 2011
Source: IDC, 2008
17. “The
profession
will
need
to
adopt
new
technologies
and
demonstrate
effec6ve
leadership
in
doing
so.”
1.
CPAs
must
stay
current
with,
embrace
and
exploit
technology
for
their
benefit
for
increased
efficiency
and
expansion
of
services.
2.
The
profession
must
find
soluFons
to
offer
investors
and
stakeholders
up-‐to-‐date,
real-‐Fme
financial
informaFon
and
to
increase
transparency.
3.
CPAs
must
embrace
mobile
technologies
and
social
media
to
modernize
and
enhance
interacFon
and
collaboraFon
with
clients
and
colleagues.
19. The FAF & XBRL – An Interview with Terri Polley
19
20. 1998
2004
2006
2008
2011
2012
MDBIZEXPO
Hudson
May
2012
Charlie
Hoffman
MACPA
lemer
Hollister
Eric
Cohen
XBRL
Chairman
Issa
DATA
Act
Walter
Hamscher
sessions
XBRL
France
Data
Act
Mike
Willis
–
PWC
DigitalNow
Second
Life
June
‘09
MACPA
XBRL
XBRL
US
Advisory
Wayne
Harding
MACPA
Social
Media
Nashville
Louis
Matherne
–
J
of
A
Sep
‘09
Sept
2011
MACPA/BLI
facilitates
MACPA
MACPA
The
Future
is
InnovaFon
XBRL
Int’l
MACPA
Tags
f/s
Summit
Strategic
Mike
Willis
–
PWC
Now
–
J
of
A
Summit
June
2011
XBRL
arFcle
June
2012
Plan
Chethan
Gorur-‐
MSFT
Rutgers
–
Nov
08
Taylor
Hawes
–
MSFT
Harm
Jan
-‐
Skip
Falatko
-‐
MACPA
Netherlands
Louis
Matherne
Skip
Falatko
–
MACPA
FASB
-‐
NFP
Eric
Cohen
–
PWC
MACPA
arFcle
Apr
‘11
Conor
O’Kelly
–
HP
Aug
2012
MeeFng
w/
MD
XBRL
Int’l
presents
to
SU
CPA
Vision
-‐
2001
Bob
Laux
–
MSFT
Comptroller
on
Mike
Willis
–
PWC
SBR
for
MD
‘08
Altova
-‐
MACPA
Altova
-‐
MACPA
Case
Study
Case
Study
#2
MACPA
XBRL
project
CPA
Island
&
CPE
in
J
of
A
Use
acct
student
to
tag
f/s
June
‘08
From
CPA
Horizons
2025
Report,
October,
2011
Integrity
–Competence
–
Lifelong
Learning
ObjecFvity
–
Excellence
–
Global
Relevance
1.
CPAs
must
stay
current
with,
embrace
and
exploit
technology
for
their
benefit
for
increased
efficiency
and
expansion
of
services.
2.
The
profession
must
find
soluFons
to
offer
investors
and
stakeholders
up-‐to-‐date,
real-‐Fme
financial
informaFon
and
to
increase
transparency.
3.
CPAs
must
embrace
mobile
technologies
and
social
media
to
modernize
and
enhance
interacFon
and
collaboraFon
with
clients
and
colleagues.
FEI
–
Gartner
Report
2010
21. The
Data
Act
hmp://www.youtube.com/watch?v=Bnn3IsOhulE
23. Beloit College’s 2016 Mindset List
• They have always lived in cyberspace, addicted to a
new generation of "electronic narcotics.”
• Michael Jackson's family, not the Kennedys,
constitutes "American royalty.”
• If they miss The Daily Show, they can always get
their news on YouTube.
• They have never seen an airplane "ticket.”
• They can't picture people actually carrying luggage
through airports rather than rolling it.
• A significant percentage of them will enter college
already some hearing loss.
23
24. Beloit College’s 2016 Mindset List
• Having grown up with MP3s and iPods, they never
listen to music on the car radio and really have no
use for radio at all.
• They have had to incessantly remind their parents
not to refer to their CDs and DVDs as "tapes.”
• History has always had its own channel.
• They watch television everywhere but on a
television.
• They grew up, somehow, without the benefits of
Romper Room.
• Bill Clinton is a senior statesman of whose
presidency they have little knowledge.
24
26. Top Seven Issues Facing Young
professionals
1. InformaFon
overload
(including
accounFng
and
tax
complexity)
2. Work
/
life
balance
3. GeneraFonal
issues
and
communicaFons
(including
upper
management
not
sharing
knowledge
with
the
younger
generaFon)
4. Developing
networking
skills
5. Keeping
up
with
technology
-‐-‐
especially
the
cloud
6. Finding
career
guidance
7. Understanding
social
media
benefits
26
27. What they want us to do to help
1. Mentorship
/
Advice
on
Career
Development
2. Expand
my
Networking
Skills
3. Young
CPA
entrepreneur
group
4. Help
bridge
communicaFon
with
staff
&
leadership
5. Training
on
technology
–
cloud,
social
6. Informal
roundtable
disucsisons
among
NYPN
27
28. According to these young professionals, the
future is one in which CPAs:
● are proactive, flexible, adaptive and
collaborative by nature;
● have regained the trust of their clients and
the public at large;
● have successfully bridged the profession’s
“leadership gap” by focusing on succession
planning, personal growth, and generational
cooperation;
● have created the profession’s premier
global industry standards and best practices;
● have redefined the profession through
work / life integration, collaboration, and a
team-first approach; and
● have earned a reputation as technological
innovators. 28
Wisdom from the MACPA Leadership
Academy
Next class: December 4,5,6, 2012
32. Are
we
entering
the
age
of
the
small
firm?
1. Merger-‐Mania
fall
out
2. Corporate
downsizing
3. Technology
leveling
the
playing
field
33. What makes a great CFO or Controller?
Your
role
as
a
CFO
is
storyteller;
make
the
numbers
tell
the
company's
story.
The
value
of
the
business
is
created
by
employees,
customers,
and
investors
in
that
order
and
alignment
of
vision,
mission
and
strategy
across
all
three.
33
34. Top Risks facing CFOs
Organizations are more likely to achieve
Source: Deloitte CFO Signals 2Q 2012 goals when properly communicated risk
appetite guides management in setting
goals & making decisions
34
37. US Treasury
MD Comptroller
MD Comptroller
MD Comptroller
CAQ
Courtesy of the Maryland Association of CPAs – 2008 edition Drawing by
Carol Kirwan, CPA
38. The (infra) Structure of the CPA Profession
Federal
&
State
Laws
&
RegulaFons
–
SEC,
DOL,
Treasury,
GAO,
PCAOB
CPA
Profession
Standards
–
AICPA
&
FASB,
GASB,
FASAB,
IASB
State
CPA
Statutes
(Law)
State Boards of Accountancy issue licenses and regulate CPAs
43. Maryland’s
fiscal
crisis
Is
there
a
third
way?
Not
just
conFnuous
tax
increases;
Not
just
draconian
spending
cuts;
But
accountability
and
efficiency
at
a
program
and
budgeFng
review
level.
51. Mary
land
- 10
99R
- 20
08
CPAs in Tax
The increase in IRS
activity is swamping our
tax practitioners and
costing them hundreds
of hours in chasing
down IRS notices.
51
58. Are
audits
gexng
worse?
Or
are
the
inspectors
gexng
pickier?
Source:
Ny
Times
59. PEEC
InterpretaFon
101-‐3,
"Nonamest
Services.”
The
commimee
is
proposing
that
financial
statement
preparaFon
and
cash-‐to-‐accrual
conversions
performed
by
a
CPA
member
for
a
client
should
be
considered
nonamest
services
and
subject
to
the
revised
requirements.
Under
the
proposed
revisions,
the
preparer
is
no
longer
required
to
perform
a
compilaFon
with
respect
to
those
statements
unless
engaged
to
do
so.
The
exposure
dra{
also
considers
the
cumulaFve
effect
that
providing
mulFple
nonamest
services
can
have
on
independence.
63. www.cpamobility.org
• Collaborative effort with AICPA – CPA/SEA – NASBA & State CPA
Societies
• 49 + DC states passed legislation in five (5) years
• Maryland enacted it in 2008
67. Maryland & Federal Tax Preparer Law
Threats to your CPA License
• Well intentioned consumer group
• Solving a problem – low income tax
frauds
• But…creating problems for CPAS
– Licensed / Certified Tax Preparers
would be confusing to the public
– Tax Preparer Exam using ACAT /
H&R Block designation (ATA, ATP)
opens door for second tier license
– Misinformation / confusion
68. CPA
Licensing
FAQs
• 76
Hours
of
CPE
Carryover
–
4
hours
of
Ethics
every
two
years
• LICENSE
TERMS
DEFINED:
INACTIVE
VS.
EXPIRED
• Sole
PracFFoners
OperaFng
as
Corps
or
LLCs
• Acceptable
Use
of
Name
(solo
cannot
use
Group
or
Associates)
69. Maryland
fees
effecFve
6/1/2012
• CPA
Exam
– (1)
AudiFng
and
AmestaFon
—
$[249]
200;
– (2)
Financial
AccounFng
and
ReporFng
—
$[237]
200;
– (3)
RegulaFon
—
$[211]
180;
– (4)
Business
Environment
and
Concepts
—
$[198]
180;
• Licensing
Fees
– Renewal
fee
—
$[80]
50;
for
two
years!
– ApplicaFon
for
inacFve
status
—
$[40]
25;
– Renewal
for
inacFve
status
—
$[40]
25;
– Reinstatement
for
inacFve
status
—
$[60]
50;
– ReacFvaFon
from
inacFve
status
—
$[80]
50;
– Reinstatement
of
expired
license
—
$[120]
100;
– Firm
applicaFon
fee
—
$[80]
60;
– Firm
permit
fee
—
${80]
60;
– Firm
renewal
fee
—
$[160]
120;
– Firm
reinstatement
fee
—
$240;
– [Proctoring
fee
—
$75]
71. Our 2013 Legislative / Regulatory Agenda
• Federal
• Workforce Mobility
• Tax Return Due Dates
• Data Act
• Dodd-Frank – preventing regulatory burdens
• PPACA – preventing regulatory burdens
• State
• Retaining Contributory negligence
• Defeating Sales Tax on Services
• Offering CPA perspectives on State Financials
• State Board
• Build relationships with ne DLLR team
• Work on CPE for smaller units
71
• Monitor Peer Review implementation
• Monitor CPA Exam application process
72. Surviving “Black Swans”
1. Have
a
vision
for
your
future
2. Build
on
your
strengths
3. Focus
on
High
Leverage
OpportuniFes
4. Keep
your
L
>
C
5. CollaboraFon
is
key
72
73.
74. Top ten skills needed
Source: IBM 2012 Global CEO Study
74
75.
76. Staff
Principal/
Decision making Director
by specification, Leading and/or
task specific work
developing new practice
areas, strategic alliances
& talent
Critical
Turning
Senior
Point
Senior
1st level supervision The
on established
Bounce
Manager
guidelines & Assess & understand
standards
longer-term variables
& accomplishing
future goals
Manager
1st level of strategic
thought & focus on
boundary spanning
activities
Copyright 2012 – Business Learning Institute
76
77. • The organizations that will
become the household
names of this century will be
renowned for sustained,
large-scale, efficient
innovation.
• The key to that capability is
neither company loyalty nor
free-agent autonomy but,
rather, a strong collaborative
community.
• HBR, July-August 2011 77
The collaboration curve
replaces the experience curve
79. What
can
you
do
to
boost
your
odds?
Tipping
point
which
way
will
they
go?
This is your
risk point!
Inner Circle Informed Pragmatists Skeptics No-Nos
Bought-in Leaders I’ll wait & see Prove it to me I don’t like this
I support it
Adoption of almost everything happens along a bell curve according to Geoffrey Moore.
Change and ideas are no different, the key is to tip the odds in your favor and pay attention to
the numbers of people in each level of your organization and within each group.
www.bizlearning.net
81. A leader s
job is to set
context and
to provide
hope and
inspiration..."
81
82. Tom
Hood,
CPA.CITP
CEO
Maryland
Associa8on
of
CPAs
Business
Learning
Ins8tute
(443)
632-‐2301
E-‐mail
tom@macpa.org
Web
hNp://www.macpa.org
Blog
hNp://www.cpasuccess.com
hNp://www,bizlearningblog.com
82
83. www.cpasuccess.com
www.bizlearningblog.com
Follow me on:
ü Twitter: http://www.Twitter.com/tomhood
ü LinkedIn: http://www.linkedin.com/in/tomhood
ü Facebook: http://www.facebook.com/thoodcpa
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ü Youtube: http://www.youtube.com/thoodcpa
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Check our Customized Training Catalog out:
http://www.bizlearning.net
83