macpa beach retreat 2014 recap

MACPA beach retreat recap

Sage vision to strategy workshop

July 2-5, 2014 Clarion Conference Center

Ocean City, MD

Tom Hood, CPA, CITP, CGMA!

Tom Hood, CPA, CITP, CGMA CEO MACPA www.macpa.org and Business Learning Institute (BLI) www.blionline.org!

http://www.linkedin.com/in/tomhood/!

If there is a conversation about the future of the profession, you're bound to hear Hood's name mentioned as one of the people leading the way.

– Accounting Today Magazine!

•  Named the Second Most Influential in Accounting by Accounting Today Magazine 2013

•  Linked-In Top 150 Influencer •  Top 25 Influencers in Learning & HR by HR

Examiner •  Top 25 Thought Leaders in Public Accounting

by CPA Practice Adviser •  Working on Learning Management with AICPA/

CPA2Biz, Cloud Curriculum, Performance Management !

The Challenge

What is the #1 reason organizations fail?

Sage vision to strategy workshop

This workshop is designed to guide participants through a strategic planning process that creates a vision for their future firm or career based on hindsight (history), foresight (future trends), and insight. Participants come away with an action plan and next steps to implement their plan.

What does the world Really want from us, next?

•  In other words, what opportunities unfold if you put yourself in service to and take your direction from the people in the world you most want to succeed and who most want you to succeed?

• What do the underlying trends suggest could be possible future states?

• Where is there a small but growing trend and where is there opportunity?

Working on their future

The top Trends

Here are the key trends identified by the workshop group, which they used to check their individual thinking against, given them the wisdom of the crowd.

The 'v' word Vision We pulled our values from our history

And referred to Simon Sinek for our Purpose or 'Why'

We used Jim Collins vision framework from 'Built to Last' to explain the two components of a vision. The core ideology rarely changes, while the envisioned future changes with the environment.

Everyone left with a vision, strategy, and action plan And a big thank you to Sage for sponsoring this program!

State of the accounting profession Mark Koziel - AICPA VP

Tom Hood - MACPA CEO

American Institute of CPAs® Private Companies Practice Section

2013 PCPS CPA Firm Top Issues

FIRMS WITH 6-‐10 PROFESSIONALS FIRMS WITH 11-‐20 PROFESSIONALS FIRMS WITH 21+ PROFESSIONALS

1 SUCCESSION PLANNING 1 BRINGING IN NEW CLIENTS 1 PARTNER ACCOUNTABILITY & UNITY

2 FINDING QUALIFIED STAFF 2 FINDING QUALIFIED STAFF 2 BRINGING IN NEW CLIENTS

3 BRINGING IN NEW CLIENTS 3 SUCCESSION PLANNING 3 RETAINING QUALIFIED STAFF

4 RETAINING QUALIFIED STAFF 4 RETAINING QUALIFIED STAFF 4 SUCCESSION PLANNING

5 PARTNER ACCOUNTABILITY & UNITY 5 RETENTION OF CURRENT CLIENTS 5 FINDING QUALIFIED STAFF

SOLE PRACTITIONERS

1 KEEPING UP WITH CHANGES AND COMPLEXITY OF TAX LAWS

2 BRINGING IN NEW CLIENTS

3 SEASONALITY/WORKLOAD COMPRESSION

4 RETENTION OF CURRENT CLIENTS

5 THE EFFECT ON FIRMS OF NEW FED & STATE REGULATION AND INCREASING COSTS TO COMPLY

FIRMS WITH 2-‐5 PROFESSIONALS

1 KEEPING UP WITH CHANGES AND COMPLEXITY OF TAX LAWS

2 SUCCESSION PLANNING

3 FINDING QUALIFIED STAFF

4 BRINGING IN NEW CLIENTS

5 SEASONALITY/WORKLOAD COMPRESSION


SOLE PRACTITIONERS

2013 2011 2009 2007

1 Keeping up with changes and complexity of tax laws

Keeping up with changes and complexity of tax laws RetenUon of current clients Tax complexity and change

2 Bringing in new clients RetenUon of current clients Keeping up with changes and complexity of tax laws

The effect on firms caused by new regulaUons and standards

3 Seasonality/workload compression Bringing in new clients


Keeping up with standards

4 RetenUon of current clients Keeping up with accounUng and a[est standards Keeping up with standards Keeping up with technology

5 The effect on firms caused by new federal and state regulaUons

Seasonality/workload compression Work/life balance iniUaUves Work/life balance iniUaUves

14

PCPS CPA Firm Top Issues



2013 2011 2009 2007

1 Keeping up with changes and complexity of tax laws Bringing in new clients RetenUon of current clients Finding qualified staff

2 Succession planning RetenUon of current clients Keeping up with changes and complexity of tax laws


3 Finding qualified staff Keeping up with changes and complexity of tax laws


Tax complexity and changes

4 Bringing in new clients Seasonality/workload compression Keeping up with standards Keeping up with standards

5 Seasonality/workload compression

Keeping up with accounUng and a[est standards Work/life balance iniUaUves Retaining qualified staff

15




2013 2011 2009 2007

1 Succession planning Bringing in new clients RetenUon of current clients Finding qualified staff

2 Finding qualified staff RetenUon of current clients Retaining qualified staff The effect on firms caused by new regulaUons and standards

3 Bringing in new clients Retaining qualified staff The effect on firms caused by new regulaUons and standards

Retaining qualified staff

4 Retaining qualified staff Keeping up with changes and complexity of tax laws

Keeping up with changes and complexity of tax laws Keeping up with standards

5 Owner/partner accountability and unity

Fee pressure/pricing of services Bringing in new clients Succession planning

16




2013 2011 2009 2007

1 Bringing in new clients Bringing in new clients RetenUon of current clients Finding qualified staff

2 Finding qualified staff Owner/ partner accountability and unity



3 Succession planning RetenUon of current clients Retaining qualified staff Retaining qualified staff

4 Retaining qualified staff Succession planning Bringing in new clients Keeping up with standards

5 RetenUon of current clients Finding qualified staff Keeping up with standards Succession planning

17



FIRMS WITH 21+ PROFESSIONALS

2013 2011 2009 2007

1 Owner/partner accountability and unity

Owner/partner accountability and unity RetenUon 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 RetenUon of current clients Succession planning Developing new partners

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

5 Finding qualified staff Succession planning Retaining qualified staff

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

18




! 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 workload compression are the biggest concerns for small firms

! Owner/partner accountability and unity remain issues for larger firms

19


Professional issues & initiatives ! Advocacy

•  Fed/State Legislation & Regulation

•  Government Fiscal Responsibility •  Tax •  Uniformity & Mobility •  Public Policy Issues

! People •  CPA Exam •  Young CPAs •  Student Recruitment •  Diversity & Inclusion •  Learning & Education

! International •  IFRS •  ISAs •  CGMA

! International CPA Exam ! Financial Literacy

! Prof. Excellence & Public Interest •  Tax Preparer Registration •  FRF for SMEs •  Integrated Reporting •  Sustainability •  SOC Reports •  Private Companies Practice

Section •  Center for Plain English

Accounting •  Audit Quality •  Peer Review & Ethics •  Specialized Communities &

Credentials •  Business, Industry & Government

! CPA Reputation ! Competition & Risk ! Operational Excellence

The Shift Change

1. Leadership!2. Learning!3. Technology!4. Generations!5. Workplace!

Top challenges

After the updates by Tom and Mark, the group identified the major challenges as follows: 1.  Keeping up with technology 2.  Succession planning 3.  Staff development 4.  Regulations & Tax 5.  Communication

Tom Hood, CPA.CITP CEO

Maryland AssociaUon of CPAs Business Learning InsUtute

(443) 632-‐2301 E-‐mail [email protected]

Web h[p://www.macpa.org Blog h[p://www.cpasuccess.com