macpa piu 2012 fall edition
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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.TRANSCRIPT
Professional Issues Update / Town Hall
By: Tom Hood, CPA, CITP, CGMA CEO
Preparing for the Extreme Future
Fall, 2012
A Message from our Chair
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Our Sponsors
MACPA Innovation Summit
http://cpa.tc/1g8
“People don’t buy what you do, they buy why you do what you do.”
-‐ Simon Sinek
Why MACPA?
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• Change • Complexity • Compliance • Convergence • Competition
Remember this? MANAGING THE SEA CHANGE
30 Future Forums 1,000 CPAs
Identified these top trends
What CPAs think about the future
http://www.bizlearning.net/live/i2afutureforums
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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
The Top 100 Most InfluenFal
• AICPA • SEC • PCAOB • MACPA! • IRS • Ron Baker – Value Pricing • FASB • Gary Boomer – Tech Guru • The next president • IASB
PrevenFng the future “Black Swan” • Technology
– The Cloud – Big Data – Mobile – Social
• Emerging Leaders & Influencers • Regulators • How to thrive amidst the chaos
Digital Information Created, Captured, Replicated Worldwide
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2006 2007 2008 2009 2010 2011
Exabytes
10-fold Growth in 5
Years!
DVD RFID
Digital TV MP3 players
Digital cameras Camera phones, VoIP
Medical imaging, Laptops, Data center applications, Games
Satellite images, GPS, ATMs, Scanners Sensors, Digital radio, DLP theaters, Telematics
Peer-to-peer, Email, Instant messaging, Videoconferencing, CAD/CAM, Toys, Industrial machines, Security systems, Appliances
Source: IDC, 2008
Source: Lee Rainie – Pew Internet Research
“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.
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The FAF & XBRL – An Interview with Terri Polley
2012 2011
Altova -‐ MACPA Case Study #2
MACPA Summit June 2011
XBRL US Nashville Sept 2011
MeeFng w/ MD Comptroller on SBR for MD ‘08
M MACPA XBRL project Use acct student to tag f/s
2008 1998 2004
Charlie Hoffman Eric Cohen Walter Hamscher
Wayne Harding Louis Matherne
Mike Willis – PWC DigitalNow
Louis Matherne FASB -‐ NFP
Hudson Hollister DATA Act
MACPA XBRL Advisory
Altova -‐ MACPA Case Study
2006
Skip Falatko – MACPA Eric Cohen – PWC
MACPA Tags f/s Mike Willis – PWC Chethan Gorur-‐ MSFT Taylor Hawes – MSFT Skip Falatko -‐ MACPA
MDBIZEXPO XBRL
sessions
MACPA/BLI facilitates XBRL Int’l Strategic Plan
CPA Vision -‐ 2001 Bob Laux – MSFT Mike Willis – PWC
CPA Island & CPE in J of A June ‘08
Rutgers – Nov 08 Harm Jan -‐ Netherlands
The Future is Now – J of A XBRL arFcle
MACPA InnovaFon Summit June 2012
Apr ‘11 Conor O’Kelly – HP XBRL Int’l presents to SU
May 2012 MACPA lemer Chairman Issa Data Act
MACPA Social Media – J of A Sep ‘09
MACPA arFcle Aug 2012
XBRL France Second Life June ‘09
FEI – Gartner Report 2010
From CPA Horizons 2025 Report, October, 2011
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.
Integrity –Competence – Lifelong Learning ObjecFvity – Excellence – Global Relevance
The Data Act
hmp://www.youtube.com/watch?v=Bnn3IsOhulE
The next generaFon
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.
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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
Accounting Students Perspectives
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Top Seven Issues Facing Young professionals
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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
What they want us to do to help
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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
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Wisdom from the MACPA Leadership Academy
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.
Next class: December 4,5,6, 2012
DigitalCPA Conference
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Do you have the urge to merge?
Are we entering the age of the small firm?
1. Merger-‐Mania fall out
2. Corporate downsizing
3. Technology leveling the playing field
What makes a great CFO or Controller?
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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.
Top Risks facing CFOs
Source: Deloitte CFO Signals 2Q 2012 Organizations are more likely to achieve goals when properly communicated risk appetite guides management in setting goals & making decisions
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MD Comptroller MD Comptroller
CAQ
US Treasury
MD Comptroller
Courtesy of the Maryland Association of CPAs – 2008 edition Drawing by Carol Kirwan, CPA
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
The (infra) Structure of the CPA Profession
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What’s at Stake?
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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.
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CPAs in Tax The increase in IRS activity is swamping our tax practitioners and costing them hundreds of hours in chasing down IRS notices.
Maryland - 1099R - 2008
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Private Company Standards
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Auditor Rotation Cascade!
Are audits gexng worse? Or are the inspectors gexng pickier?
Source: Ny Times
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.
State LegislaFon
CPA Day in Annapolis – January 16, 2013
CPA State Legislators
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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
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• Accountancy bills (20 states) - 51
• Auditor Rotation (3 states) - 8
• Mobility (2 states) - 6
• Regulation of Tax Preparers (3 states) - 5
• Tax on Accounting Services (6 states) - 11
• Peer Review (4 states) - 7
• State Board Consolidation (6 states) 8
State Legislation and Regulatory
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
• 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)
CPA Licensing FAQs
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]
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New CPA Swearing-in Ceremony – November 1st, BWI Hilton Hotel
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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 • Monitor Peer Review implementation • Monitor CPA Exam application process
Surviving “Black Swans”
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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
Top ten skills needed
Source: IBM 2012 Global CEO Study 74
Staff Principal/Director
Senior Senior Manager
Manager
Decision making by specification,
task specific work
1st level supervision on established guidelines & standards
1st level of strategic thought & focus on boundary spanning
activities
Assess & understand longer-term variables
& accomplishing future goals
Leading and/or developing new practice areas, strategic alliances
& talent Critical Turning Point The
Bounce
Copyright 2012 – Business Learning Institute 76
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The collaboration curve replaces the experience curve
• “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
It really is about this...
Inner Circle Bought-in
Informed Leaders I support it
Pragmatists I’ll wait & see
Skeptics Prove it to me
No-Nos I don’t like this
Tipping point which way will they go?
This is your risk point!
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.
What can you do to boost your odds?
www.bizlearning.net
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A leader’s job is to set context and to provide hope and inspiration..."
Tom Hood, CPA.CITP CEO
Maryland Associa8on of CPAs Business Learning Ins8tute
(443) 632-‐2301 E-‐mail [email protected]
Web hNp://www.macpa.org Blog hNp://www.cpasuccess.com hNp://www,bizlearningblog.com
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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 ü Slideshare: http://www.slideshare.net/thoodcpa
ü Youtube: http://www.youtube.com/thoodcpa
ü Second Life avatar name: Rocky Maddaloni Check our Customized Training Catalog out:
http://www.bizlearning.net
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CPA Vision Report, October, 1999
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