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MACPA 2014 Professional Issues Update - Special Business & Industry edition
 

MACPA 2014 Professional Issues Update - Special Business & Industry edition

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What are the top issues facing CFOs, Controllers, and CPAs in Business/Industry, NFP and Government? ...

What are the top issues facing CFOs, Controllers, and CPAs in Business/Industry, NFP and Government?

MACPA CEO Tom Hood, voted second most influential leader in the CPA Profession in Accounting Today’s 2013 list of the Top 100 Most Influential People in Accounting (his ninth time on the list) sees five fundamental shifts facing accounting now – Leadership, Learning, Technology, Generations and Workplace.

In a world of rapid change and increasing complexity, the winners will be those individuals and organizations who can keep their L>C², their rate of learning must be greater than the rate of change and greater than their competition. Tom’s updates are always popular for CPAs and include the latest trends and issues the profession is facing locally, nationally, and globally.

This special Business & Industry Edition also covers a special session on the CFO of the Future by Ash Noah, CPA, CGMA of the AICPA/CGMA and a presentation by our Business & Industry Committee of the results of our ThinkTank session on the major issue and opportunities facing CPAs in B&I by Skip Falatko and B&I member Joselin Martin.

Also include is an update on legislation and regulation and the advocacy efforts of the Maryland Association of CPAs.

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MACPA 2014 Professional Issues Update - Special Business & Industry edition MACPA 2014 Professional Issues Update - Special Business & Industry edition Presentation Transcript

  • Tom Hood, CPA, CITP, CGMA Business & Industry Edition Rockville, MD March 26, 2014
  • 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 !
  • http://macpa.cnf.io! ! Respond to a Poll! Ask a Question! Select the session: Business & Industry PIU
  • Download today’s slides at … www.SlideShare.net/thoodcpa
  • Insights  to  Ac,on     “One  without  the  other  is  either  useless  or  destruc,ve”  
  • http://cpa.tc/4d7
  • The future is so bright, I gotta wear shades… - Timbuk3
  • The CPA Career
  • Expects a 13% growth rate in accounting and auditing jobs from 2012 to 2022
  • # 3 2014
  • Accounting education records broken 2013 AICPA Trends Report 40,350 CPA firm new hires 82,177 graduates
  • CPA credential in high demand! Source: Wall Street Journal, 8/13/13 25% 38% 0 5 10 15 20 25 30 35 40 2006 2013 CFOs who are CPAs Employers: Most desired credential Solid salary growth Entry-level demand also strong Robert Half 2014 Salary Guide
  • The CPA Brand The
  • The future of accounting is bright – accounting students from six Maryland universities at MACPA – NABA event http://cpa.tc/4aa
  • What  do  you  want  from  your   employer?  
  • What  are  you  looking  for  in  your   associa,on?  
  • CFO - the Chief Future Officer? Ash Noah CPA, FCMA, CGMA VP External Relations – Management Accounting The future CFO 2013 IBM
  • 202020 The future business paradigm?
  • 212121 Of Global CFOs do not believe that the ‘CFO’ title adequately covers the diversity in the role Chief Future Officer? Finance Forte Survey 2011 Ernst & Young
  • 222222 Report the ability to find the right skills is progressively more difficult the higher the roles are within the organization Chief Future Officer? Plugging the skills gap 2012 EIU 68%
  • 232323 Chief Future Officer? Turning the Tide; Accenture 40%Reported high-end analytical skills as being the future success of their organization But only 15% Of those have these skills available
  • 242424 Talent Pipeline Draining Growth 2012 CGMA Developer of talent pipeline Of c-suite respondents agreed that the ability to attract, retain and deploy the right talent is ‘the’ main competitive advantage over a third
  • 252525 Measures and focuses on non-financial value Rebooting Business - 2012 CGMA
  • 262626 Measures and focuses on non-financial value Rebooting Business - 2012 CGMA
  • 272727 Recognizes value in non-financial measures* * Extent of value provided - % of respondents selecting 8-10 on a scale of 10. Rebooting Business - 2012 CGMA
  • 282828 Big Data enabled From insight to impact - 2013 CGMA
  • Big Data enabled finance •  A minority (23%) report no role in anlaytics •  Another minority (21%) claim a leading role •  A 55% majority say finance partners with others (55% = 37% + 9% + 9%) •  Interviews agree on a collaborative role From insight to impact - 2013 CGMA
  • 303030 Overcoming impediments to harnessing Big Data From insight to impact - 2013 CGMA
  • 313131 Five traits of the data enabled CFO From insight to impact - 2013 CGMA
  • Source: IBM CEO Survey - Leading Through Connections Turns data to insights to action
  • Shared Service Centers Technology SCALE BENEFITS Focus on Process and Technology Finance function has delivered scale benefits
  • INCREASED INSIGHTS BUSINESS SUPPORT REAL BUSINESS BENEFITS Focus on People and Products The future is about delivering value Shared Service Centers Technology SCALE BENEFITS
  • 353535 The catalyst for Innovation § Garners C-suite support for innovation § Promotes a culture of innovation permeating the whole company, not just R&D § Devices employee incentives to both encourage innovation and innovative culture § CFOs drive for predictability and reliability - an obstacle to innovation § Flexibility and tolerance of failure are necessary § Financial processes and metrics need to be aligned with innovation lifecycle § Learns to ‘live with ambiguity’ Managing Innovation- 2013 CGMA
  • 363636 The innovation imperative § Average tenure of a company in the S&P500 has fallen to 18 years from 61 years in 1950s Managing Innovation- 2013 CGMA
  • 373737 The role of finance throughout the innovation lifecycle Leading innovation and managing risk Managing Innovation- 2013 CGMA
  • 383838 Chief Future Officer? Leading through Connections: IBM 75%Collaborative 67% Communicative % of CEOs that identified these skills as CRITICAL for future success 61% Creativity
  • 393939 Chief Future Officer? Turning the Tide; Accenture 52%Report international skills as being critical for the future success of their organization But only 18% Of those have these skills available
  • 404040 Of the global respondents identified ‘strategic vision’ as the hardest skill to find for executive roles within their organizations Chief Future Officer? Plugging the skills gap 2012 EIU 55%
  • CFO of the Future will create strategic impact
  • 424242 CFO – Striking the right balance
  • 434343 CFO of the Future builds business capabilities
  • 444444 Importance of various skills for finance – as rated by non-finance personnel The inside track ; Partnering for value- 2012 CGMA
  • 454545 Skills most in need of improvement by finance personnel The inside track ; Partnering for value- 2012 CGMA
  • 464646 Collaboration and decision support The inside track ; Partnering for value- 2012 CGMA
  • 474747 IBMs Chief Future Officer
  • 484848 Collaboration and decision support
  • Applying principles to management process & practice
  • 505050 777 Greatest value coming from non-financial sources* * Extent of value provided - % of respondents selecting 8-10 on a scale of 10. CFO of the Future will create strategic impact 888 Will be data enabled 222222 The role of finance throughout the innovation lifecycle Leading innovation and managing risk 666 Talent Pipeline Draining Growth 2012 CGMA Developer of talent pipeline 242424 CFO – Striking the right balance
  • 515151 FURTHER READING http://www.cgma.org/Resources/Reports/DownloadableDocuments/CGMA-managing_innovation.pdf http://www.cgma.org/Resources/Reports/DownloadableDocuments/inside-track.pdf http://www.cgma.org/Resources/Reports/DownloadableDocuments/CGMA_launch_report.pdf http://www.cgma.org/Resources/Reports/DownloadableDocuments/From_insight_to_impact- unlocking_the_opportunities_in_big_data.pdf http://www.cgma.org/Resources/Reports/DownloadableDocuments/CGMA_Talent_pipeline_report.pdf
  • Thank You!
  • Controller  &     CFO  Roundtable   Held  November  18,  2013  
  • Organiza,on  Type   50%   25%   15%   10%   Private  company   Public  company   Not-­‐for-­‐profit   Other  
  • Staff  Size   18%   32%  36%   9%   5%   1  -­‐  10   11  -­‐  50   51  -­‐  250   251  -­‐  500   501  -­‐  1,000  
  • Number  of  CPAs  on  Staff   64%   36%   1   2  -­‐  5  
  • Genera,ons   64%   32%   5%   '46  -­‐  '64  Boomers   '65  -­‐  '79  Gen  X   '80  -­‐  '00  Milleniels  or   Gen  Y  
  • The New Normal - VUCA
  • Cloud  compu,ng?   9%   36%   5%  14%   32%   5%   Completely  there   ParLally  there   In  process   Planning  on  moving   EvaluaLng   Not  interested  
  • Big  Data   0   2   4   6   8   10   12   14   Other   Not  using  at  all   Benchmarking   Fraud  detecLon   Strategic  planning   ForecasLng  
  • Next  Roundtable  Event…   •  Friday,  May  9,  2014   •  8:00  a.m.  to  9:40  a.m.   •  MACPA  Columbia  Center  –  Columbia,  MD   •  Two  hours  free  CPE    
  • Business  &  Industry  Conference   •  April  24,  2014   •  Turf  Valley  Resort  –  Howard  County   •  8:15  a.m.  to  5:00  p.m.  
  • Quarterly  Financial  Leaders  Series   •  Thursday,  May  22,  2014   •  “Smarter  Decision-­‐Making”   •  Led  by  Jennifer  Elder   •  8:00  a.m.  to  12:00  p.m.  –  4  Hours  CPE   •  MACPA  Offices  -­‐  Towson,  Maryland  
  • CPA  Innova,on  Summit   • Monday,  June  16,  2014   • Hyae  Regency-­‐  Bal,more   • 8:00  a.m.  to  5:30  p.m.  
  • Regulations & Standards Accounting Auditing Tax
  • #Accoun,ngStandards   Public  &   Private   Companies   Private   Companies-­‐   Small   Business   Public  &   Private   Companies     Private   Companies     Private   Companies-­‐   Small   Business   Financial   ReporLng   IFRS   (IASB)     IFRS-­‐SME   (IASB)     GAAP   (FASB)     GAAP-­‐PCC   (FASB)     FRF-­‐SME   (AICPA)     AudiLng   IAASB   IAASB   PCAOB   ASB  (AICPA)   ASB  (AICPA)     ASB  (AICPA)     Ethics   IFAC   IFAC   PEEC   (AICPA)   PEEC   (AICPA)     PEEC   (AICPA)    
  • FASB,  PCC,  FRF-­‐SME   •  13-01A Identifiable Intangible Assets – Business Combinations •  13-02 Variable Interest Entities •  13-01B Accounting for Goodwill •  13-03A Variable Pay – Fixed Interest Rate Swaps •  13-013B Variable Pay – Fixed Interest Rate Swaps
  • GASB  67  &  68  
  • Federal  Agenda   •  Mobile  Workforce   •  What’s  at  Stake   •  DATA  Act   •  Keep  cash  basis  for   personal  service   companies  (S  Corps  &   Partnerships)   •  Stop  Patent  Trolls    
  • “If  you  don’t  want  to  be  involved  in  poli,cs,  then  be   prepared  for  the  consequences  of  those  that  do.”   2,500  Bills  -­‐  188  Legislators  –  90  days  
  • CPA  Day  2014   CPA Day in Annapolis – January 29th, 2015
  • The  MACPA  2014  Agenda   ü  Stop sales taxes on services ü  Protect contributory negligence ü  Prevent combined reporting ü  Prevent unnecessary CPA legislation ü  Promote the Maryland Competitiveness Coalition’s Work
  • Students  &  NABA  at  CPA  Day  
  • MACPA  State  Budget  Task  Force  to   Host  GASB  Pension  Summit  –  Dec  14  
  • New  Appointments:  Art  Flach  –  Grant  Thornton  &  Phil  Kolb  –  University  of  Bal,more   Two  emerging  issues:  1)  Firm  Mobility                                2)  Defini,on  of  Aeest  (SAS,  SSARS  +  SSAEs  (SOC  reports)                    3)  CPE  in  small  bytes  
  • New  CPA  Swearing-­‐in  Ceremony   November  4,  2014  BWI  Hilton  
  • “It  is  more  important  to  stop  bad  bills  than  pass  good  ones.”   -­‐  Calvin  Coolidge  –  President   •  Sales  tax  on  accoun,ng  and  tax  services  (defeated   several  ,mes)  1997  -­‐  HB  580  ,2001  HB  1337,   2004  HB  1364,    2007  -­‐  HB  448  ,  2012  HB  1051   •  Maryland  corporate  accountability  (SOX  and  404   for  private  companies  and  non-­‐profits)   2003  –  SB  560   •  Debt  counseling  registra,on  by  CPAs     2011  -­‐  SB  741   •  Maryland  Tax  Preparers  2007  -­‐  HB  998   •  Compara,ve  fault  (several  ,mes)  1998  SB  618  ,   2000  -­‐  SB  779,  2001  SB  483  ,    2007  -­‐  HB  110   •  Elimina,on  of  audit  requirements  for  Maryland   cemeteries    2011  –  SB  352   •   AG  opinion  allowing  CPAs  to  include  Social   Security  numbers  on  documents  for  tax  services  –   8/30/2011   •  Got  Exemp,on  from  MSP  Private  Inves,gator   Registra,on   If  not  us,  Who?  
  • Building  and  Maintaining  the  CPA   Infrastructure   •  Separate  funding  for  the  State  Board   2006  -­‐  HB  103   •  Experience  requirement  to  make  Maryland  CPAs   compa,ble  with  UAA  (Uniform  Accountancy  Act)   2001  -­‐MD  COMAR  09.24.03.1       •  Ethics  requirement  for  CPE  2006  -­‐MD  COMAR   09.24.02.02   •  Mandatory  peer  review  and  prac,ce  quality   2005  –  HB  1223   •  Exemp,on  for  CPAs  from  Maryland  (and  federal)   tax  preparer  regula,on  2008  -­‐  SB  817   •  Prac,ce  mobility  2008  -­‐  HB  1296   •  Expanding  acceptable  CPE  methods    2009  -­‐  HB  69   •  120/150  CPA  exam  legisla,on    2011  -­‐  SB  287   •  Restricted  audits,  reviews,  and  compila,ons  to   CPAs  and  added  safe  harbor  for  compila,ons     2011  -­‐  HB  328   •  State  Board  of  Public  Accountancy  reauthoriza,on   2013  -­‐  SB  238  
  • “Our world is governed by numbers generated by the accounts of nations and corporations.” – Jane Gleesom-White Maryland founded on March 25, 1634 (380 years old) MD CPA Law passed on April 10, 1900 (114 years old)
  • Maryland’s  Future  
  • The Shift Change!
  • Dealing with the Shift Change – MACPA Young Professionals
  • The Next Gen CPA Leaders… 1.  are proactive, flexible, adaptive and collaborative by nature; 2.  have regained the trust of their clients and the public at large; 3.  have successfully bridged the profession’s “leadership gap” by focusing on succession planning, personal growth, and generational cooperation; 4.  have created the profession’s premier global industry standards and best practices; 5.  have redefined the profession through work / life integration, collaboration, and a team-first approach; and 6.  have earned a reputation as technological innovators.
  • How? 1. Professional unity 2. Work / life integration 3. The evolving nature of leadership and new leadership models 4. Proactive, goal-focused planning 5. Networked collaboration 6. Embracing and adopting new technologies From: To: Hierarchy Network Transactions Relationships Efficient Effective Well managed Well led Command & Control Connect & Collaborate Push Pull Good Great
  • http://www.macpa.org/Content/leadership-academy.aspx June 24-26, 2014
  • Learning
  • www.blionline.org • Identify Competencies • Career Path (Ladder) • Curriculum • Cloud Learning Our approach –The Four C’s he right talent with the right skills at the right tim
  • www.blionline.org
  • www.blionline.org The Bounce – Career path
  • Curriculum design by BLI and AICPA usingTop 5 Competencies for future from CPA Horizons research and job levels from the BLI “Bounce” Model. Leadership and Communications were combined and the 5th category expanded to include practice specialties for firms and functional areas for corporate. Examples would include: Corporate Accounting, FP&A, divisional reporting, shared services, etc. CPA Firms would have audit, tax, industry specialties. These technical areas would have specific curriculums designed to meet their specific technical competency needs.
  • CloudLearning "We see this system as a key recruitment and retention tool, allowing us to offer our people many of the things that the largest firms do - competency–based curriculum, career paths, and just-in-time learning, and our own custom D&S learning center. ! ! ! !" !- Allen DeLeon, Managing Partner"
  • www.blionline.org R.O.I = R.O.P
  • Technology
  • Era Years Typical thing managed Best known company Content mgmt focus Mainframe 1960-1975 A batch trans IBM Microfilm Mini 1975-1992 A dept process Digital Equipment Image Mgmt PC 1992-2001 A document Microsoft Document Mgmt Internet 2001-2009 A web page Google Content Mgmt Social and Cloud 2010-2015 interactions Facebook Social Business Systems Systems of Record Systems of Engagement
  • Information Chaos Systems of Engagement and Record misaligned. Mobile means information leaking everywhere. Information coming faster than it can be digested. More silos than ever – and new ones in the cloud The “business” circumvents IT. We’re spending too much on technology. Information Opportunity End to end process synchronization. Governance occurs regardless of device. Analytics automatically categorizes and disposes. Governance occurs regardless of location. IT spend aligned with opportunities. Cloud opportunities to save on legacy. Business Benefit Processes transparent to customers. Employees and customers work on their own device. Static information now at rest put into motion. It doesn’t matter where information “lives.” A new business/IT alignment. IT shifts from a cost center to value creator.
  • Cambrian “Big Bang” Explosion
  • June 16, 2014 – Hyatt Regency Inner Harbor http://cpa.tc/3pz
  • Generations
  • Generational Issues Tone at the Top Cross generation meetings Communication with Feedback frequently Trust & try Openness Embrace technology Build on strengths
  • Dealing with Generations •  Build on Strengths •  Create a Positive Work Environment •  Collaborate
  • Workplace
  • 1.  All  cloud,  all  the  ,me.   2.  Technology   3.  Mobility   4.  An  open  mind   5.  Coffee!   EssenLals   1.  Don’t  manage.  Lead.   2.  Hire  the  right  people.   3.  Communica,on.   4.  Integra,on  –  Outlook,  contacts,  e-­‐ mail,  calendars   5.  Updates  /  connec,ons   Managing  virtually   Jody  Padar   Jason  Blumer   Jennifer  Katrulya  
  • Work is not a place, it is what you do. And What you do while working is fundamentally different.
  • 5  virtual-­‐work  essen,als   1.  The  right  technology   2.  The  right  mobile  solu,ons   3.  The  right  apps   4.  In-­‐office  tech  support   5.  In-­‐office  moral  support  
  • The only career advice you’ll ever need…
  • You  are  in  a  race…!
  • Caused by this guy…!
  • It’s really a math problem…! 2006!
  • Picture: John Drake - Flickr! “…where the most important skill is the ability to acquire new skills…” - Robert Safian - FastCompany!
  • T! “In  a  period  of  rapid  change  and  increasing   complexity,  the  winners  are  going  to  be  the  people   who  can  LEARN  faster  than  the  rate  of  CHANGE   and  faster  than  their  COMPETITION.” -­‐  Tom  Hood,  CPA.CITP.CGMA! 6/24/13!
  • You can’t beat the machine…! But you can win if you work with the machine…!
  • The  five  C’s! •  Creative & Critical Thinking! •  Contextual Awareness! •  Connections & Relationships! •  Communication! •  Collaboration!
  • Career  Advice    Winning  the  race  against  the  machine! 1. Know Yourself - Strengths, Values & Passions! 2. Create & Protect your brand - You are the CEO of You, Inc.! 3. Keep your L>C! 4. Work like an immigrant! 5. Think like an artist!
  • Connect  &  Collaborate!
  • A leader s job is to define context and provide hope and inspiration...#
  • Tom  Hood,  CPA.CITP   CEO   Maryland  AssociaLon  of  CPAs   Business  Learning  InsLtute   (443)  632-­‐2301   E-­‐mail  tom@macpa.org   Web  hcp://www.macpa.org   Blog  hcp://www.cpasuccess.com