MACPA 2013 Spring Town Hall / PIU Biz&Ind EditionPresentation Transcript
MACPA Town Hall & Professional Issues Update for MEMBERS Business & Industry Edition Tom Hood, CPA, CITP, CGMA CEO MACPA & the Business Learning Institute
Our Sponsors MACPA Innova1on Summit 2
Message from our Chair
Download today’s slides at … www.SlideShare.net/thoodcpa #PIU13 #MACPA @tomhood @MACPA
Name this tune
Remember this?MANAGING THE SEA CHANGE• Change• Complexity• Compliance• Convergence• Competition
“You can’t stop the waves, but you can learn how to surf.” – Jon Kabbat-‐Zinn
Inattentional blindness http://www.burrus.com
Be like Mike(y)
Insights to AcJon “One without the other is either useless or destrucJve”
Time to Change?
We now accept the fact that learning is a lifelong process of keeping abreast of change. And the most pressing task is to teach people how to learn.
OrganizaJons are complex Requiring complex inputs from business levers that need to be monitored eﬀecJvely enabling constant correcJons to achieve desired outcomes – Ash Noah -‐ CGMA
The new “Big Four” • Standards & Leg/Reg • Technology • InnovaJon • GeneraJons in workplace
The US Economy Schumpeters Curve of CreaJve DestrucJon
LegislaJon & RegulaJon • Federal – Fiscal Cliﬀ • State • Budget Deﬁcit • Sales Tax on Services • Tort Reform h_p://cpa.tc/1ut
First the facts about Fiscal Cliﬀ, Sequester and Fed Budget
What’s at Stake?
2011 US Financial Statements Revenue = $2.4 trillion Expenses = exceeded revenue by $1.3 trillion 13
Accumulated deficit - US $16.0 $14.8 $13.5 $11.5 In trillions 1 2 3 4 2009 2010 2011 2012 14
What’s at Stake – Maryland Edition An analysis of the State of Maryland’s Financial Statements and Fiscal Health The Maryland Association of CPAs www.macpa.org
Budget Establishes the Tool to Measured ﬁscal goals help guide envisioned by on a cash Governor & spendingGeneral Assembly basis decisions www.macpa.org 1
State of Maryland Budget vs Financials Budget surplus $363 Million vs Financial deﬁcit $1.2 Billion 2
The Budget includes Federal, Special & Higher Ed Funds Source: Maryland Department of Budget and Management www.macpa.org 3
Financial statement Provide informatioRecord of Prepared n aboutwhat has on an longer- actually accrual termhappened basis implicatio ns www.macpa.org 4
How a CPA looks at a publicly traded company’s financialsRevenue: how much money Expenses: how much the company is bringing in money the company is spending Earnings Expenses < Revenue = Financially Healthy Company www.macpa.org 5
2011 Financial Statements Revenue = $33.5 billion Expenses exceeded revenue by $1.2 billion 40,000 Note: The Financial 35,000 30,000 Statement Deﬁcit is 25,000 Revenue 20,000 down from the 15,000 Expenses Deﬁcit 2009 highpoint of 10,000 5,000 $2.9 billion 0 -5,000 2009 2010 2011 6
How a CPA looks at a publicly traded company’s financials Liabilities: Debts and Assets: Property, contracts, andinvestments owned by a company, obligations arising regarded as having value and from past available to meet debts, commitments, or legacies. transactions and events Net Assets: The residual net worth of assets minus liabilities. If net assets are Assets > Liabilities = negative you are considered Financially Healthy Company insolvent as your obligations are more than you own. www.macpa.org 8
Net Assetsdecreased by$7.2 Billion in past 5 years www.macpa.org 9
State of Maryland Federal Dependency Opportunity or Threat? Source: Governor’s Grants Ofﬁce Source: Maryland Board of Revenue Estimates www.macpa.org 12
MACPA State Budget Task Force www.macpa.org 15
MACPA State Budget Task Force Cynthia S. Lund, Vice President of State Society Aﬀairs AICPA – American Ins1tute of CPAs Speakers Eric Brenner, Director Merril Oliver, Deputy Director Governor’s Grants Oﬃce The Honorable Nancy K. Kopp Treasurer of Maryland Warren Deschenaux, Director of Policy Department of Legisla1ve Services John M. Wasilisin Execu1ve Vice President/Chief Opera1ng Oﬃcer Maryland Technology Development Corpora1on (TEDCO) Former Deputy Secretary of the Maryland Department of Budget and Management Former Deputy Secretary of the Department of Labor, Licensing and Regula1on John D. Kenney, Former Director, General Accoun1ng Division Comptroller of Maryland www.macpa.org 16
Changes in the Profession 55 Firms in T100 Mega-‐mergers Counter trends? www.bizlearning.net
InnovaJon for CPAs • Big Four Trends – Social – Mobile – Cloud – Big Data (XBRL) • InnovaJve Services – Value-‐added CFO – CFO Advisory Services – FRF-‐SME – Assurance on XBRL Tagging – XBRL for research
Sunny or Cloudy?
Moore’s Advice on how to Escape Velocity 3 Areas of Investment 3 Strategic Decisions • Migrate Systems of Record • Determine current & to the cloud desired future state of your pracJce • Adopt Systems of Engagement to conduct • IdenJfy technology investments appropriate to business interacJons on-‐ stages of transiJon line • Organize change • Adapt enterprise Business management around Intelligence approaches to business pracJce address high-‐value business transformaJons and consulJng needs technology deployments
Me and Geoﬀrey Moore
Dealing with DisrupJon
Dealing with DisrupJon • Visionary • Adopt ahead of the industry to gain compeJJve advantage • Focus on technology that accentuates your diﬀerenJaJon • Pay up to get the extra support necessary for early adopters • Showcase your systems with your clients for leadership posiJoning • PragmaJst • Adopt in conjuncJon with the rest of the industry to reduce risk • Focus on technology that keeps pace with market expectaJons • Pay up to go with the market leader to further reduce risk • Integrate your systems with your established business processes for producJvity gains • ConservaJve • Adopt later in the life cycle to defer capital investment and reduce cost • Focus on technology that catches you up to market expectaJons • Go with a low-‐price soluJon from an established commodity vendor • Displace prior systems to reduce overall operaJng expenses.
Don’t be a C.A.V.E man Colleagues Against Virtually Everything
S-‐Curves & Business Model InnovaJon • ROA! • L>C • CC > EC
Rear view analyJcs Dashboards are backward looking requiring the driver to keep his head down – Ash Noah -‐ CGMA
CGMA – CIMAThe global value-added financial professional
Our Vision Statement for the future is: ( mandates to ourselves for a successful future) CPAs are the trusted professionals who enable people and organizations to shape their future. Combining insight with integrity, CPAs deliver value by: • CommunicaJng the total picture with clarity and objecJvity, • TranslaJng complex informaJon into criJcal knowledge, • AnJcipaJng and creaJng opportuniJes, and • Designing pathways that transform vision into reality.
The Information Value Chain • CommunicaJng the total picture with clarity and objecJvity, • TranslaJng complex informaJon into criJcal knowledge, • AnJcipaJng and creaJng opportuniJes, and • Designing pathways that transform vision into reality. Business Communicate & Events Capture Report Insight Engage Action Vision Leadership and Business Model Development Compliance The Foundation • Forward• Historical looking• Compliance • Reliance• Technical • Leadership
InnovaJon thru CollaboraJon
CGMA Survey Balancing Risk & InnovaJon • Understand your business model. What creates, and could potenJally destroy, value in your business? • Harness the power of transparency. Create a line of sight between capital sources and how it will be invested in the sustained success of the business, beyond the short-‐term. • Ensure robust informa1on ﬂows. Build conﬁdence in the right informaJon that drives investment and risk miJgaJon decisions. • Go beyond deﬁning a risk appe1te. Have a risk astude that empowers all in the business to take appropriate risks that drive growth and opportunity. • Be clear on the skills and talents you need now for tomorrow. IdenJfy and close potenJal skills gaps you may have when considering your future business model, markets and innovaJon agenda.
Leading InnovaJon 1. "OK, lets give it a whirl!” 2. "Its harder than it looks.” 3. "It seems to be working!” 4. "Were reaching the point of no return. Do we really want to do this forever?” 5. "Hey, were starJng to get really good at this." Source: IDEO Project Mood Chart
Three Rules for Success 1. Be_er before cheaper (its best to compete on diﬀerenJators other than price); 2. Revenue before cost (prioriJze increasing revenue over reducing costs); 3. There are no other rules.
The Start-‐up of You
The 5 C’s • Career Path (Ladder) • Competency-based Learning • Curriculum • Compliance Tracking for CPAs • Content – world-class Technical & Leadership Courses in multiple formats
Corporate Learning Matrix
The Corporate Learning Matrix Competencies Leadership & Strategic & Collaboration Technologically *Technical *Separate columns Communication Critical & Synthesis Savvy Skills for for organization’s Staff Thinking Functional functional ﬁnancial Levels Areas areas – examples:Staff / • CorporateAnalyst Accounting & Reporting • FP&A • Business ServicesSenior Staff • Shared ServicesManager SeniorManager /Controller CFO / SVP /Director
Are you a Mr. T-‐ shaped Professional?
Why should you care about Social Media? “In-‐forming is the individual persons analog to open-‐sourcing, outsourcing, insourcing, supply-‐chaining, and oﬀshoring. Informing is the ability to build and supply your own personal supply chain—a supply chain of informa1on, knowledge, and entertainment. In-‐ forming is about self-‐collabora1on— becoming your own self-‐directed and self-‐ empowered researcher, editor, and selector of entertainment. – Thomas Friedman
ProducJvity & You
Glassblowing and CPAs? MACPA Summit – May 16th, 2013 MarJn’s West
If you need help Let Bill Sheridan, NaJonal Thought Leader and architect of MACPA’s award-‐ winning social media strategy, be your trusted guide to help you jump start your social media experJse. In seven tele-‐coaching sessions, Bill will guide you through creaJng a social strategy and hands-‐on coaching to get you up and running fast! BLI program: Social Media Strategy & Quick Start: Developing and ImplemenJng a Social Media Strategy for CPA Firms & OrganizaJons h_p://cpa.tc/8s
Some starJng points • Michelle Golden (Golden PracJces; h_p://goldenmarkeJng.typepad.com) • Paul Caron (TaxProf; h_p://taxprof.typepad.com) • Caleb Newquist & Adrienne Gonzalez (Going Concern; h_p://goingconcern.com) • Rick Telberg (CPA Trendlines; h_p://cpatrendlines.com) • Francine McKenna (re: The Auditors; h_p://retheauditors.com) • David Albrecht (The Summa; h_p://profalbrecht.wordpress.com) • Tax Policy Center (Tax Vox; h_p://taxvox.taxpolicycenter.org) • Tax FoundaJon (Tax Policy; www.taxfoundaJon.org /blog) • Tom Hood and Bill Sheridan (CPA Success; www.cpasuccess.com) • Blumer CPAs/THRIVEal h_p://blumercpas.com/blog • Kelly Phillips Erb Tax Girl h_p://blogs.forbes.com/kellyphillipserb • Tom Selling The AccounJng Onion h_p://accounJngonion.typepad.com • Jody Padar -‐ AccounJng Tomorrow h_p://www.accounJngtoday.com/acto_blog/ • Jeﬀ Drew – Another71 (CPA Exam blog) h_p://www.another71.com/
More Resources CPA Success posts about social media h_p://www.cpasuccess.com/social-‐media/ Self-‐directed learning guide – 15 min a day h_p://www.cpalearning2.com/ Can Social Media Help You Learn? h_p://cpa.tc/sociallearn Making Social Media Work for You h_p://www.journalofaccountancy.com/MulJmedia/TomHood.htm Social Media for Learning h_p://cpa.tc/sociallearn Social Media for CPAs and CEOs – interviews & stories h_p://cpa.tc/social How to Leverage Social Media – Journal of Accountancy h_p://cpa.tc/8u
Recommended Reading • The Corporate Blogging Book by Debbie Weil • Crush-‐It by Gary Vaynerchuk • The Whuﬃe Factor by Tara Hunt • Here Comes Everybody by Clay Shirky • Social Media Strategies for Professionals and Their Firms by Michelle Golden • Switch: How to Change When Change is Hard – Chip & Dan Heath • Escaping Velocity by Geoﬀrey Moore
Follow me on: Tom Hood, CPA.CITP ü Twi_er: h_p://www.Twi_er.com/tomhood CEO ü LinkedIn: h_p://www.linkedin.com/in/tomhood Maryland Associa1on of CPAs Business Learning Ins1tute ü Facebook: h_p://www.facebook.com/thoodcpa (443) 632-‐2301 ü Plaxo: h_p://tomhood.myplaxo.com E-‐mail firstname.lastname@example.org Web hip://www.macpa.org ü Slideshare: h_p://www.slideshare.net/thoodcpa Blog hip://www.cpasuccess.com ü Youtube: h_p://www.youtube.com/thoodcpa Blog hip://www.bizlearningblog.com ü Second Life avatar name: Rocky Maddaloni