1. MACPA Town Hall & Professional
Issues Update for MEMBERS
Business & Industry Edition
Tom Hood, CPA, CITP, CGMA
CEO
MACPA & the Business Learning
Institute

2. Our
Sponsors
MACPA
Innova1on
Summit
2

3. Message
from
our
Chair

4. Download
today’s
slides
at
…
www.SlideShare.net/thoodcpa
#PIU13
#MACPA
@tomhood
@MACPA

5. Name
this
tune

6. 50%
or more?

7. Remember this?
MANAGING THE SEA CHANGE
• Change
• Complexity
• Compliance
• Convergence
• Competition

8. “You
can’t
stop
the
waves,
but
you
can
learn
how
to
surf.”
–
Jon
Kabbat-­‐Zinn

9. Inattentional blindness
http://www.burrus.com

10. Be
like
Mike(y)

11. Insights
to
AcJon
“One
without
the
other
is
either
useless
or
destrucJve”

12. Time
to
Change?

13. 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.

14. 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

15. The
new
“Big
Four”
• Standards
&
Leg/Reg
• Technology
• InnovaJon
• GeneraJons
in
workplace

16. The
US
Economy
Schumpeter's
Curve
of
CreaJve
DestrucJon

17. LegislaJon
&
RegulaJon
• Federal
–
Fiscal
Cliff
• State
• Budget
Deficit
• Sales
Tax
on
Services
• Tort
Reform
h_p://cpa.tc/1ut

18. First
the
facts
about
Fiscal
Cliff,
Sequester
and
Fed
Budget

19. What’s
at
Stake?

20. 2011 US Financial Statements
Revenue =
$2.4 trillion
Expenses =
exceeded revenue
by $1.3 trillion
13

21. Accumulated deficit - US
$16.0
$14.8
$13.5
$11.5
In trillions
1
2
3
4
2009 2010 2011 2012 14

22. 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

23. Budget
Establishes the Tool to
Measured
fiscal goals help guide
envisioned by on a cash
Governor & spending
General Assembly
basis
decisions
www.macpa.org 1

24. State of Maryland
Budget vs Financials
Budget surplus
$363 Million vs
Financial deficit
$1.2 Billion
2

25. The Budget includes
Federal, Special &
Higher Ed Funds
Source: Maryland Department of Budget and Management
www.macpa.org 3

26. Financial statement
Provide
informatio
Record of Prepared
n about
what has on an
longer-
actually accrual
term
happened
basis
implicatio
ns
www.macpa.org 4

27. How a CPA looks at a publicly traded
company’s financials
Revenue: 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

28. 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

29. 7

30. How a CPA looks at a publicly traded
company’s financials
Liabilities: Debts and
Assets: Property, contracts, and
investments 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

31. Net Assets
decreased by
$7.2 Billion in
past 5 years
www.macpa.org 9

32. Maryland’s unfunded
Pension obligations of
$28.5 Billion
Source: 2011 CAFR Footnotes 15 & 16
www.macpa.org 10

33. www.macpa.org 11

34. State of Maryland
Federal Dependency
Opportunity or Threat?
Source: Governor’s Grants Office
Source: Maryland Board of Revenue Estimates
www.macpa.org 12

35. MACPA State Budget
Task Force
www.macpa.org 15

36. 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

37. MACPA State Budget Task
Force
MD CAFR 2011 http://www.marylandtaxes.com/finances/revenue/reports/cafr/cafr2011.pdf
Resources
MD CAFR 2012 http://www.marylandtaxes.com/finances/revenue/reports/cafr/cafr2012.pdf
FY 2013 Proposed Operating Budget Detail -
http://dbm.maryland.gov/agencies/operbudget/Pages/2013ProposedOperBudget.aspx
FY 2012 Proposed Operating Budget Detail -
http://dbm.maryland.gov/agencies/operbudget/Pages/2012ProposedOperBudget.aspx
2012 Fiscal Digest (Approved Operating Budget)
http://dbm.maryland.gov/agencies/operbudget/Pages/2012FiscalDigest.aspx
MD Governor’s Grants Office Annual Report RY 2011-2013 -
http://grants.maryland.gov/Pages/AnnualReport.aspx
www.macpa.org 17

38. Democracies
will
not
confront
the
major
issues
of
their
day
unJl
the
absolute
last
moment

39. Accoun&ng
bodies
hail
G20
emphasis
on
public
sector
repor&ng
DATA
Act
&
Financial
Industry
Transparency
Act
using
XBRL

40. Where
were
you
on
January
16th?

41. It’s
really
a
numbers
game
2,500
188
90

42. Sales
Taxes
on
Services?

43. Annapolis
Update

44. The
Future
is
Bright
Students
from
U
of
B

45. New
Deputy
Comptroller
David
Roose
at
MACPA
Board
MeeJng

46. Advocacy
–
If
not
you,
who?

47. Standards
• InternaJonal
–
IASB
&
IFRS
• FASB
&
PCC
• AICPA
&
FRF
–
SME
• ASB
–
Clarity
(12/15)
• GASB
Pension
h_p://cpa.tc/1us
• PEEC

48. FAF,
XBRL
and
You

49. Changes
in
the
Profession
55
Firms
in
T100
Mega-­‐mergers
Counter
trends?
www.bizlearning.net

53. 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

54. Sunny
or
Cloudy?

55. 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

56. Me
and
Geoffrey
Moore

57. Social
AccounJng?

58. Dealing
with
DisrupJon

59. 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.

60. Don’t
be
a
C.A.V.E
man
Colleagues
Against
Virtually
Everything

61. S-­‐Curves
&
Business
Model
InnovaJon
• ROA!
• L>C
• CC
>
EC

62. Rear
view
analyJcs
Dashboards
are
backward
looking
requiring
the
driver
to
keep
his
head
down
–
Ash
Noah
-­‐
CGMA

64. EBR

65. Source:
Deloi_e
CFO
Signals™
survey,
fourth
quarter
2012

66. Source:
Deloi_e
CFO
Signals™
survey,
fourth
quarter
2012

67. CPA,CGMA

68. 2/3
1/3

69. CGMA – CIMA
The global value-added financial professional

70. 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.

71. 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

72. InnovaJon
thru
CollaboraJon

73. 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.

74. Leading
InnovaJon
1. "OK,
let's
give
it
a
whirl!”
2. "It's
harder
than
it
looks.”
3. "It
seems
to
be
working!”
4. "We're
reaching
the
point
of
no
return.
Do
we
really
want
to
do
this
forever?”
5. "Hey,
we're
starJng
to
get
really
good
at
this."
Source:
IDEO
Project
Mood
Chart

75. Three
Rules
for
Success
1. Be_er
before
cheaper
(it's
best
to
compete
on
differenJators
other
than
price);
2. Revenue
before
cost
(prioriJze
increasing
revenue
over
reducing
costs);
3. There
are
no
other
rules.

76. The
Start-­‐up
of
You

78. The 5 C’s
• Career Path (Ladder)
• Competency-based Learning
• Curriculum
• Compliance Tracking for CPAs
• Content – world-class Technical &
Leadership Courses in multiple formats

82. Corporate Learning Matrix

83. 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 / • Corporate
Analyst
Accounting &
Reporting
• FP&A
• Business Services
Senior Staff
• Shared Services
Manager
Senior
Manager /
Controller
CFO / SVP /
Director

84. Are
you
a
Mr.
T-­‐
shaped
Professional?

85. Why
should
you
care
about
Social
Media?
“In-­‐forming
is
the
individual
person's
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

86. ProducJvity
&
You

87. Glassblowing
and
CPAs?
MACPA
Summit
–
May
16th,
2013
MarJn’s
West

88. 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

89. 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/

90. 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

91. 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

92. 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
tom@macpa.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