macpa fall 2014 - professional issues update

Format: Town Hall

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1 Lookout Post

2 Laws, Regulations,

& Standards

4 Protect

5 Achieve

3 Connect

1 Lookout Post

2 Laws, Regulations,

& Standards

4 Protect

5 Achieve

3 Connect

Lookout Post

Trends in the Profession

Command & ControlEpisodic & PassiveSystems of RecordA place you go

Connect & Collaborate

JIT & Participative

Systems o

f Engagement

What you do

HierarchyTransactional

On-Premise – CustomizedRigid, Cube farmsGeneration Gap

Network

Transformational

SMAC – Social Mobile Analytics C

loud

Open, Collaborative, Flexible

Generation Lap

Command & ControlEpisodic & PassiveSystems of RecordA place you go

Connect & Collaborate

JIT & Participative

Systems o

f Engagement

What you do

HierarchyTransactional

On-Premise – CustomizedRigid, Cube farmsGeneration Gap

Network

Transformational

SMAC – Social Mobile Analytics C

loud

Open, Collaborative, Flexible

Generation Lap

Incumbent practices,

resources and

institutions are in

decline

New business

models, practic

es and

technologies are

emerging

The challenge & opportunity is to make the shift from the first curve to the second curve at the right time and with the right strategy

Leadership

Learning

Technology

Workplace

Generations

Leadership

1.a.ii.1

Leadership

Leaders are positive, flexible and future-minded, self-aware, and attuned to the changing context around them. – Tom Hood & Gretchen Pisano

Learning

Learning

Technology

Technology

Work is not a place, it is what you do. And… What you do while working

is fundamentally different.

Workplace

Workplace

Workplace

Workplace

Workplace

Generations

Gen X

So what does this all mean for CPAs?

What Got You Here, Won’t Get You There.

What does this mean for Small Practitioners?

"Increasing the proactive consultative approach to business service and technology information is one of the most important factors in improving a firm’s reputation and the strength of its relationships.” - Doug Sleeter

What does this mean for Small Practitioners?

MACPA Member Survey Top Challenges 2014

Sleeter Group Survey 2014

The research: Anticipation is showing up across our Profession.

New skills/services1. Plan A – know your fundamentals 2. Strategy & Business Experience as new baseline 3. Career plan for next big thing: insight and analytics 4. Get risk experience under the belt 5. Become a deal maker 6. Get closer to stakeholders and customer focus 7. Focus on management skills that matter

1. Leadership 2. Communication 3. Strategic thinking 4. Change management

8. Prepare for regulation and broader reporting 9. Get connected 10.Expand your footprint (go global)

What does this mean for CFOs?

Maryland Public Company Collaboration

• Learning & Talent Development • Global Structure of Finance Function • Managing Risk & Innovation • Insight to Action

What does this mean for CPA Firms?

FIRMS  WITH  21+  PROFESSIONALS

2013 2011 2009 2007

1 Owner/partner  accountability  and  unity

Owner/partner  accountability  and  unity Retention  of  current  clients Finding  qualified  staff

2 Bringing  in  new  clients Bringing  in  new  clients Owner/partner  accountability  and  unity Retaining  qualified  staff

3 Retaining  qualified  staff Retention  of  current  clients Succession  planning Developing  new  partners

4 Succession  planning Fee  pressure/pricing  of  services Bringing  in  new  clients Work/life  balance  initiatives  

5 Finding  qualified  staff Succession  planning Retaining  qualified  staff

(1)  Management  of human  resources(2)  Seasonality/workload  compression

PCPS CPA Firm Top Issues

What does this mean for Small Firms?

What does this mean for Young Professionals?

What’s Keeping Young CPAs Up at Night?

!1. Not enough time 2. Being reactive vs. proactive 3. Talent development 4. Keeping up 5. Growth (and opportunity) 6. Doing more with less 7. Information overload

http://cpa.tc/54s

What does this mean for Young Professionals?

11 Things Young Professionals Want You to Know 1. More collaboration. 2. More transparency.  3. Encourage initiative. 4. Focus on strengths. 5. Expect the unexpected. 6. Take time to save time. 7. Look beyond the billable hour. 8. Engage your team in your vision. 9. Be realistic. 10.Train your staff and expect accountability. 11.Take a financial risk on leadership.

http://cpa.tc/54r

What does this mean for Students?

1. Power of Vision, Purpose & Alignment 2. People - Strengths & Positivity (ROP) 3. Collaboration & Engagement 4. Learning & Development – L>C2 5. Technology (RONI)

Five Ways to Thrive in the Shift Change

Lookout Post

1 Lookout Post

2 Laws, Regulations,

& Standards

4 Protect

5 Achieve

3 Connect

Laws, Regulations, & Standards

Federal Laws & Regulations

DOL Pension Audits

Cash Basis Income Tax

ACA - Affordable Care Act

IRS Regulations for Tax Preparers, CPAs Suing the IRS

Wynne Case in SCOTUS

Workforce Mobility

Data Act

Data Act

State Board of Public Accountancy (Licensing Issues)

Current issues with your license

• Employee Benefit Plans Peer Review

• Responding to the Board

• CPE Tracking and Reporting

Financial Accounting Standards

Accounting Standards

Public  &  Private  Companies

Private  Companies-­‐  Small  Business

Public  &  Private  Companies  

Private  Companies  

Private  Companies-­‐  Small  Business

State  &  Local  Gov’t

Federal  Gov’t

Financial  Reporting

IFRS  (IASB)  

IFRS-­‐SME  (IASB)  

GAAP  (FASB)  

GAAP-­‐PCC  (FASB)  

FRF-­‐SME  (AICPA)  

GASB FASAB

Auditing IAASB IAASB PCAOB  ASB  (AICPA)

ASB  (AICPA)   ASB  (AICPA)   GAGAS  Yellow  Book  GAO

GAGAS  Yellow  Book  GAO

Ethics IFAC IFAC PEEC  (AICPA)

PEEC  (AICPA)  

PEEC  (AICPA)  

PEEC  (AICPA)

PEEC  (AICPA)

• Rev Rec

Financial Accounting Standards

• Cash Flow

• GASB 67, 68

Peer Review Standards

New Code of Ethics• Intuitively arranged

• User-friendly online code:

aicpa.org/newcode

• Enforceable rules and principles not

changed

• Minimum substantive changes to

interpretations

• Non-authoritative guidance referenced

• Effective December 15, 2014

• Additional year for Conceptual

Frameworks

Laws, Regulations, & Standards

1 Lookout Post

2 Laws, Regulations,

& Standards

4 Protect

5 Achieve

3 Connect

Connect

Connecting CPAs to our profession, each other, and

the world at large.

Connecting to Our Member Segments

Student Group Town Hall

NYPN

Women to Watch

Town Hall

Committee and Chapter Activity

MACPA Groups

http://cpa.tc/21g

https://twitter.com/macpaCPE!

twitter.com/macpaCPE

Sales Tax Resources for MACPA

The MACPA Accountants Resources Center gives you the tools you need to lead your clients through the complexities and dynamic challenges of sales and use tax compliance.

Connect

1 Lookout Post

2 Laws, Regulations,

& Standards

4 Protect

5 Achieve

3 Connect

Protect

MACPA Legislative and Regulatory Advocacy

What is the #1 Thing MACPA does

for CPAs and CPA Firms that nobody else

does?

Legislative Advocacy

“From then on, they are no longer isolated men, but a power one sees

from afar, whose actions serve as an example; a power that speaks, and to which one listens.” – Alexis de Tocqueville, on the

power of Associations in Democracy in America

Federal Laws & Regulations

State Laws

Passage of MD Mandatory Peer Review Legislation

State Board of Public Accountancy (Licensing Issues)

CPA Day in Annapolis - 1/29/15

New CPA Swearing In 11/10/14

Results“MACPA has one of the most effective legislative advocacy programs in

the nation.” - Joe Petito, PWC Representative for The Big Four Accountants Coalition

Offense !

• Separate funding for the State Board 2006 - HB 103

• Experience requirement to make Maryland CPAs compatible with UAA (Uniform Accountancy Act) 2001 -MD COMAR 09.24.03.1

• Ethics requirement for CPE 2006 -MD COMAR 09.24.02.02 Prevent SOX Cascade

• Mandatory peer review and practice quality 2005 – HB 1223

• Exemption for CPAs from Maryland (and federal) tax preparer regulation 2008 - SB 817

• Practice mobility 2008 - HB 1296 • Expanding acceptable CPE methods 2009 -

HB 69 • 120/150 CPA exam legislation 2011 - SB 287 • Restricted audits, reviews, and compilations to

CPAs and added safe harbor for compilations 2011 - HB 328

• State Board of Public Accountancy reauthorization 2013 - SB 238

Defense !

• Sales tax on accounting and tax services (defeated several times) 1997 - HB 580 ,2001 HB 1337, 2004 HB 1364, 2007 - HB 448 , 2012 HB 1051

• Maryland corporate accountability (SOX and 404 for private companies and non-profits) 2003 – SB 560

• Debt counseling registration by CPAs 2011 - SB 741

• Maryland Tax Preparers 2007 - HB 998 • Comparative fault (several times) 1998 SB

618 , 2000 - SB 779, 2001 SB 483 , 2007 - HB 110

• Elimination of audit requirements for Maryland cemeteries 2011 – SB 352

•  AG opinion allowing CPAs to include Social Security numbers on documents for tax services – 8/30/2011

• Got Exemption from MSP Private Investigator Registration

Our 2015 MD agenda

1. Appeal Bond Reform 2. Expanded definition of attest 3. Build new relationships with legislators

1. Stop Sales Taxes on Services 2. Stop Comparative Fault by Trial Lawyers 3. Monitor 2,500 active bills in MD legislature

Numbers Count!

Defense

Offense

“...not many members of the Maryland legislature likely had had dealings with accountants or had

familiarity with what they did.” - an appeal to members from a 1900 meeting of MACPA

Still true today

We need you!1.100% Membership Support for

Grassroots Advocacy 2. Legislative Sponsorship (lobbying and

event support) 3. Support our PAC ($4,000 per firm $350

per partner) 4. Attendance at key events:

A. New CPA / Swearing-In - November 10th BWI Hilton B. CPA day in Annapolis - January 29, 2015

Numbers Count!

Protect

1 Lookout Post

2 Laws, Regulations,

& Standards

4 Protect

5 Achieve

3 Connect

Achieve

“In a period of rapid change and increasing complexity, the winners are going to be the people who can LEARN faster than the rate of CHANGE and faster than their COMPETITION.”

- Tom Hood, CPA.CITP.CGMA

Welcome to Gen Flux

“…where the number one skill is the ability to acquire new skills.”

Rita McGrath

Daniel Burrus May 4, 2015 BWI Hilton

CGMA Competency Framework

CGMA Follows the Bounce!

Changes in CPE Programming

MACPA Upcoming Events

Innovation Summit 2015

June 23, 2015

Leadership Academy June 3-5, 2015

Tom’s Favorite Tools

“Use the tools, don’t let the tools use you.”

– Francine McKenna @retheauditors

• Twitter • Linked-In • Blog • Slideshare.net • Evernote • Tweetdeck.com • Hootsuite.com • Zite.com • Kindle

Achieve

Connect Protect Achieve

Lighting the Way for the Shift Change

Command & ControlEpisodic & PassiveSystems of RecordA place you go

Connect & Collaborate

JIT & Participative

Systems o

f Engagement

What you do

HierarchyTransactional

On-Premise – CustomizedRigid, Cube farmsGeneration Gap

Network

Transformational

SMAC – Social Mobile Analytics C

loud

Open, Collaborative, Flexible

Generation Lap

Senator Feldman said

Maryland is the best state in the nation to have

your CPA license.

“Tom Hood makes every CPA kinda wish they were licensed in

Maryland.” –

Greg Kyte, CPA, Utah and Accounting Today

Top 100 Influencer

Why CPAs?

Thank You for Coming