AICPA & CPA/SEAInterchange ConferenceWhat You Really Need to Know About CPA FirmsKim Fantaci, AAA Executive DirectorDennis Lemieux, AAA Director of Professional Awareness and Director of Operations ofBerry, Dunn, McNeil & ParkerJuly 30, 2009

What are CPA firms facing today? Economic crisis Implementation of standards and market needs Client service Development of professionals Attracting the next generation and succession Embracing and implementing of new technologies

Economic crisis

Implementation of standards and market needs

Client service

Development of professionals

Attracting the next generation and succession

Embracing and implementing of new technologies

Economic crisisRecovery is slowSome indicators are up while other economic indicators have worsenedAICPA polls indicate increased optimismAccounting profession typically lags behind other industries making it more difficult to manage the firmClients are tightening belts and having difficultiesFirms having to cut expenses and in some cases staff

Recovery is slow

Some indicators are up while other economic indicators have worsened

AICPA polls indicate increased optimism

Accounting profession typically lags behind other industries making it more difficult to manage the firm

Clients are tightening belts and having difficulties

Firms having to cut expenses and in some cases staff

Implementation of Standards and Market NeedsInternational Convergence / IFRSFederal Laws & RegulationsSEC, DOL, Treasury, GAO, PCAOBCPA Profession StandardsAICPA & FASB, GASB, FASAB, IASB, IFACState CPA Statutes

International Convergence / IFRS

Federal Laws & Regulations

CPA Profession Standards

State CPA Statutes

Changes in Client ServiceWillingness to changeMarketing and practice growthProtecting the CPA image and reputationDeveloping and managing nichesQuality controlAccountability“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.” – Charles Darwin

Willingness to change

Marketing and practice growth

Protecting the CPA image and reputation

Developing and managing niches

Quality control

Accountability

Development of ProfessionalsBridging the gap between college and the real worldUnder-developed skill sets (leadership, communication, time management and organization, analytical and technical skills)Work-life balanceDeveloping and expanding networking opportunities and organizational membershipsPromoting the CPA exam and career (understand the “new exam”, track progress, support the swearing-in ceremony, create and reinforce a culture that celebrates CPAs)Quality and affordable CPE

Bridging the gap between college and the real world

Under-developed skill sets (leadership, communication, time management and organization, analytical and technical skills)

Work-life balance

Developing and expanding networking opportunities and organizational memberships

Promoting the CPA exam and career (understand the “new exam”, track progress, support the swearing-in ceremony, create and reinforce a culture that celebrates CPAs)

Quality and affordable CPE

Attracting the Next Generation and SuccessionRecruiting through the economic challengesRetaining staff and effectively communicating the challenges of the firm and clientsStriving to understand the next generation and creating a culture of learning, coaching, mentoring and nurturingDeveloping succession plans in an ever-changing environment

Recruiting through the economic challenges

Retaining staff and effectively communicating the challenges of the firm and clients

Striving to understand the next generation and creating a culture of learning, coaching, mentoring and nurturing

Developing succession plans in an ever-changing environment

Embracing and implementing new technologiesIncreasing rate of application changeExplosion of digital data and informationConnection optionsSystem access and resiliency requirementsSecurity issuesEconomic factors driving firms towards optimizing efficiency and standardization“The technology used by firms both to directly provide service to clients and to manage the practice are essential to productivity.” – Isaac M. O’Bannon

Increasing rate of application change

Explosion of digital data and information

Connection options

System access and resiliency requirements

Security issues

Economic factors driving firms towards optimizing efficiency and standardization

The Firm AdministratorProfessionals managing today’s accounting practices are . . . responsible for the management of an accounting practice.responsible for the quality and profitability of their firm.supervising and/or training staff in an accounting practice.interested in developing a network of outstanding professionals.ready to promote their firm in today’s marketplace.responsible for their firm’s technology, automation, and productivity.both new and experienced professional administrators with a diverse background.

responsible for the management of an accounting practice.

responsible for the quality and profitability of their firm.

supervising and/or training staff in an accounting practice.

interested in developing a network of outstanding professionals.

ready to promote their firm in today’s marketplace.

responsible for their firm’s technology, automation, and productivity.

both new and experienced professional administrators with a diverse background.

The Firm AdministratorProfessionals managing accounting practices hold different titles depending on firm structure and culture . . . Managing Partner Chief Operating Officer Firm Administrator Director of Administration Controller Human Resource Director Office Manager Administrative ManagerRegardless of the title, those managing accounting practices are constantly looking to best practices and their network to satisfy the growing professional needs in the field of accounting administration.

Association for Accounting AdministrationMore than 930 professionals managing accounting practices are members of the Association for Accounting Administration.The AAA’s vision is to be the number one resource for best practices in the accounting profession providing member and firm value resulting in high quality management and administration.

AAA DemographicsAAA member firms have between 5 and 5,000 personnel with an average firm size of just over 50. AAA member firms are represented in all 50 states and nearly all Canadian provinces with 22 chapters throughout the United States and Canada.AAA members have between 3 months and 32 years of experience with the average member having 7 years of experience in the accounting profession.The typical member has supervisory responsibilities in the areas of firm administration, practice management, facility management, finance and accounting, practice development, technology, marketing, human resources, scheduling and production control, and strategic planning.

AAA member firms have between 5 and 5,000 personnel with an average firm size of just over 50.

AAA member firms are represented in all 50 states and nearly all Canadian provinces with 22 chapters throughout the United States and Canada.

AAA members have between 3 months and 32 years of experience with the average member having 7 years of experience in the accounting profession.

The typical member has supervisory responsibilities in the areas of firm administration, practice management, facility management, finance and accounting, practice development, technology, marketing, human resources, scheduling and production control, and strategic planning.

Active Relationships or Partnerships with State SocietiesMinnesota ArizonaIllinoisOhioIndianaMassachusettsMichiganNew MexicoColoradoWe’d love to develop active relationships and networking with all State CPA Societies!

Minnesota

Arizona

Illinois

Ohio

Indiana

Massachusetts

Michigan

New Mexico

Colorado

Interaction between CPA Firm and State CPA SocietiesInsurance ProgramsAre you reaching the entire firm with information about insurance programs?Is the information clear and understandable to not only the CPAs but the firm as a whole when putting together their benefit packages?

Are you reaching the entire firm with information about insurance programs?

Is the information clear and understandable to not only the CPAs but the firm as a whole when putting together their benefit packages?

Interaction between CPA Firm and State CPA SocietiesEducational SpeakersCPA firms have individuals available for both technical and practice management topics.Do you know who the firm experts are?Does the State Society reach to the individual firm level with educational programs?Do the firms know the availability of in-house and customized programs?

CPA firms have individuals available for both technical and practice management topics.

Do you know who the firm experts are?

Does the State Society reach to the individual firm level with educational programs?

Do the firms know the availability of in-house and customized programs?

Interaction between CPA Firm and State CPA SocietiesCoordination of Educational ProgramsCPA firms offer technical sessions for their clients and staff on a regular basis – is there room for coordination between firms and the State Society of educational programs to eliminate duplication and expense?

CPA firms offer technical sessions for their clients and staff on a regular basis – is there room for coordination between firms and the State Society of educational programs to eliminate duplication and expense?

Interaction between CPA Firm and State CPA SocietiesProduct Distribution and EducationIs the promotion and distribution of products and services efficiently and effectively received by those within CPA firms?Training the firm’s administration professional can save time, money and resources for the State SocietyUtilization of the firm’s administration professional in beta testing of products and resources

Is the promotion and distribution of products and services efficiently and effectively received by those within CPA firms?

Training the firm’s administration professional can save time, money and resources for the State Society

Utilization of the firm’s administration professional in beta testing of products and resources

Interaction between CPA Firm and State CPA SocietiesCommunicationGo from communicating with 10 or more members at one firm to one administration professionalAdministration professionals have the attention of firm professionals and the authority to make decisionsInformation overload causes less participation and will eventually harm retention ratesAdministration professionals have their hand on the pulse of the firm’s culture

Go from communicating with 10 or more members at one firm to one administration professional

Administration professionals have the attention of firm professionals and the authority to make decisions

Information overload causes less participation and will eventually harm retention rates

Administration professionals have their hand on the pulse of the firm’s culture

Interaction between CPA Firm and State CPA SocietiesBillingMost State Societies invoice the firm for dues and other items - but not all have this set upRemember if administration professionals are not members of the State Society – give them billing coordination abilities like usernames and passwordsThis will provide for more efficient and accurate collections for the State Society

Most State Societies invoice the firm for dues and other items - but not all have this set up

Remember if administration professionals are not members of the State Society – give them billing coordination abilities like usernames and passwords

This will provide for more efficient and accurate collections for the State Society

Interaction between CPA Firm and State CPA SocietiesCPE RegistrationFilter through administration professional who already track CPE and can encourage professionals to register for needed coursesCPE tracking will be easier for the firm and therefore the State SocietyMost Society systems don’t allow for non-members to register or for one individual to register multiple registrants

Filter through administration professional who already track CPE and can encourage professionals to register for needed courses

CPE tracking will be easier for the firm and therefore the State Society

Most Society systems don’t allow for non-members to register or for one individual to register multiple registrants

How Can State Societies and Administration Professionals Partner?Offer State Society MembershipDo you offer a classification for the administration professional?Do you charge for this membership classification?What does your Society offer to these members?What could they offer to these members?

Do you offer a classification for the administration professional?

Do you charge for this membership classification?

What does your Society offer to these members?

What could they offer to these members?

How Can State Societies and Administration Professionals Partner?Offerings to Administration ProfessionalsEducational programs and trainingsIndustry news and hot issuesRelationships with State Society staff membersCommunication tools Efficient and effective distribution of information

Educational programs and trainings

Industry news and hot issues

Relationships with State Society staff members

Communication tools

Efficient and effective distribution of information

Use AAA Chapters for Efficiency and EffectivenessChapter OfferingsRespected CPA firms in 22geographic areasWell planned programs andeducational offeringsLocal and regional networksUse of several iConnectionswithin AAA iCommunities for distribution of information and promotions.

Respected CPA firms in 22geographic areas

Well planned programs andeducational offerings

Local and regional networks

Use of several iConnectionswithin AAA iCommunities for distribution of information and promotions.

Use AAA Organization for Efficiency and EffectivenessNorth American OfferingsRespected firms throughout the U.S. and CanadaWell planned programs and educational offeringsAbility to host webinars to connect effectively and efficiently with administration professionalsAAA iCommunities for distribution of information and promotions including calendars complimentary postings

Respected firms throughout the U.S. and Canada

Well planned programs and educational offerings

Ability to host webinars to connect effectively and efficiently with administration professionals

AAA iCommunities for distribution of information and promotions including calendars complimentary postings

If you knew the following about CPA firms or your membersit would make your jobs easier . . . 1.2.3.4.5.

State CPA Societies are invited to send their Executive Directorsor Presidents to the AAA National Practice Management Conferencewith the registration fee on us!

Thank you!Association for Accounting Administration136 South Keowee StreetDayton, Ohio 45402(937) 222-0030 | Fax (937) 222-5794aaainfo@cpaadmin.org | www.cpaadmin.org