Maryland Major Firms Group meeting - May 2012
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Maryland Major Firms Group meeting - May 2012

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Update to Maryland CPA Firms covering the latest developments & issues facing CPA Firms. This meeting covered the special session and 2012 session of the Maryland General Assembly and updates on other ...

Update to Maryland CPA Firms covering the latest developments & issues facing CPA Firms. This meeting covered the special session and 2012 session of the Maryland General Assembly and updates on other issues like generations, leadership & success planning, talent, and technology. Put on by the Maryland Association of CPAs

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Maryland Major Firms Group meeting - May 2012 Maryland Major Firms Group meeting - May 2012 Document Transcript

  • Maryland  Association  of  CPAs   Managing  Partner  Briefing   May,  23,  2012    Welcome  –     Allen  DeLeon  –  Chairman  of  the  Board     Tom  Hood,  CPA.CITP  -­‐  CEO  /  Executive  Director  Outcomes:       • Update  on  important  legislative  /  regulatory  changes  that  affect  CPA  firms   • Development  of  priorities  from  managing  partners   • How  you  can  help  us  continue  our  success   • Share  the  latest  in  trends  facing  CPA  firms    (CPA  Horizons  2025)  Today’s  Agenda   • Setting  context  –  background  on  legislative  /  regulatory  environment   (infrastructure)   • Update  on  past  and  present  advocacy  efforts  and  results   • What’s  next  –  our  2011  -­‐  2012  Legislative  Agenda   • How  you  can  help  us  make  a  major  difference   • Trends  facing  CPA  firms  the  latest  from  AICPA/PCPS  &  CPA  Horizons  2025   Projec    Setting  Context  &  Update  on  Past  &  Present  Advocacy  Efforts  &  Results  The  Five  C’s   Change   Complexity   Compliance   Convergence   Competition  
  • Maryland  Association  of  CPAs   Managing  Partner  Briefing   May,  23,  2012     The  CPA  Profession  continues  to  be  in  a  rapid  state  of  change  Infrastructure  –  the  pipes  under  your  firm’s  practice   1. Professional  Standards   2. Federal  Legislation  &  Regulation   3. State  Legislation  &  Regulation   4. State  Board  of  Accountancy  –  Legislation,  Regulation,  Examination,   Licensing,  Enforcement      Infrastructure  -­‐  Update   1. Professional  Standards  –  decision  expected  5-­‐24-­‐12   Private  Company  Financial  Standards  –  MACPA  Task  Force  whitepaper   FASB-­‐IASB  Convergence  becomes  Condorsement   2. Federal  Legislation  &  Regulation  Successes   Sarbanes-­‐Oxley  Act  of  2002   Dodd-­‐Frank  –  Consumer  Financial  Protection  Act  of  2010   a) Prevented  Congress  takeover  of  FASB   b) Exempted  CPAs  from  registration  as  Financial  Planners   c) Prevented  Specter  Aiding  &  Abetting  amendment   FTC  “red  flags”  –  exempted  CPA  firms   Healthcare  &  1099’s  –  instrumental  in  repeal   Tax  Strategy  Patents  (stopped  enforcement  –  e.g.  Roth  IRA  Conversion)   IRS  Notices  up  700%   DATA  Act  of  2011  (Digital  Accountability  &  Transparency  Act  &  XBRL)   Workforce  Mobility  (passed  House)  
  • Maryland  Association  of  CPAs   Managing  Partner  Briefing   May,  23,  2012                3.  MACPA’s    State  Legislative  Agenda  –     a) 2011  5  for  5  +  2  3!     i) Passed  State  Board  120/150  CPA  Exam  legislation  –  effective  10/01/11   ii) Passed  “Safe  Harbor”  legislation  for  Compilations  (Reviews  restricted  to  CPAs)   iii) Stopped  Debt  Counselor  registration  ($250  per  CPA)   iv) Stopped  sales  Tax  on  Accounting  &  Tax  services   v) Stopped  efforts  to  liberalize  tort  laws  (lawsuit  abuse)   vi) Plus  Two  Three!   (1) Opposed  combined  reporting  due  to  complexity  &  time  to  implement   (2) Opposed  Cemetery  Bill  to  stop  requirement  for  audited  financials   (3) Obtained  Attorney  General  Opinion  allowing  use  of  Social  Security  #’s   for  Maryland  Tax  Preparation  (Clarification  of  Maryland  SS  Privacy   Act)   b) 2012    4  for  4   i) Stopped  Sales  Tax  on  Services   ii) Stopped  e-­‐filing  tax  in  Governor’s  BRFA  Bill   iii) Stopped  Combined  Reporting   iv) Passed  e-­‐filing  of  credits    4.  State  Board  of  Accountancy  –  Legislation,  Regulation,  Examination,         Licensing,  Enforcement   • CPA  Exam  applicants  at  record  levels  –  long  delays  90  –  120  days   • Mobility  legislation  –  Maryland  license  accepted  in  48  states  (NY  just   signed  into  law  &  DC  in  for  Mayor  signature)   • CPE  Regulations   o Revised  in  2009  under  leadership  of  Terry  Hancock   o CPE  enforcement  –  biggest  issue  is  four  (4)  hour  ethics   requirement   • Peer  Review  oversight  committee  
  • Maryland  Association  of  CPAs   Managing  Partner  Briefing   May,  23,  2012   • Appointments  to  Board   oRay  Speciale  –  Educator  member  of  Board  (left  MACPA  Board)   oLiz  Gantnier  –  Stegman  (PCAOB  &  AICPA  Instructor)   oTim  Murphy  –  Southern  Maryland   oMac  Claxton  –  PG  County  (MACPA/MSA  member)   oLosing  Terry  Hancock  –  (Clifton  Gunderson)  State  Board  Chairman   oArt  Flach  (Grant  Thornton)  is  our  next  selection  for  2013    What’s  next  –  our  2012  -­‐  2013  Legislative  Agenda   • Lots  of  tax  legislation   • Election  year  (Governor  &  major  part  of  188  legislators)   • Expected  $1.1  billion  state  deficit   • Changes  in  DLLR  and  State  Board  of  Accountancy  appointments  How  you  can  help  us  make  a  major  difference   1. Support  of  membership  –  100%  membership  initiative   2. Support  of  Swearing-­‐in  Ceremony  (prior  &  future)  –  Fall,  2012   3. Support  of  CPA  Day  in  Annapolis  –  January  16th,  2013   4. Support  of  PAC  (contributions  allowed  up  to  $4,000  per  firm  The  “new”  math   Additional  Economic  Impact  on  Firms   Sales  tax  on  services     Federal  CFPA  registration                      $    250     Partner  Revenue  $1,000,000     MD  Tax  Preparation        100   X  6%                  $60,000  per  partner     MD  Debt  Counseling        150                        $6,000  per  employee     Mobility  (2  States)        500   Liability  (Tort  reform)     Total  Savings  per  CPA   /  year                      $1,000   Increase  in  professional  liability  insurance   Increase  in  lawsuits,  claims  &  settlements  What  do  you  think  about  our  results?  Our  priorities?    
  • Maryland  Association  of  CPAs   Managing  Partner  Briefing   May,  23,  2012    Share  the  latest  in  trends  facing  CPA  firms   Top  trends  to  watch  and  the  time  to  address  is  now  (CPA  Horizons  2025)   1. Aging  population,  loss  of  wisdom,  knowledge  transfer   2. Global  rules  &  standards  –IFRS  –  complexity   3. Information  overload,  complexity  (Need  for  critical  thinking  &  filter)     4. Information  Security,  Privacy  &  Data  Protection   5. Global  Competition,  Rise  of  the  Rest   6. Work-­‐Life  Balance   7. Diversity  –  Cultural  Fusion  –  Beiging  of  America   8. Changing  Communication  (decline  of  face-­‐to-­‐face)   9. Increased  Globalization   10. US  Deficit       11. Education     AICPA  /  PCPS  Top  trends  for  firms  >  21   1. Partner  Accountability  /  Firm  Unity   2. Bringing  in  New  Clients   3. Retention  of  Existing  Clients   4. Fee  Pressure  /  Pricing  of  Services   5. Succession  Planning    Resources  for  Major  Firms:  CPA  Horizons  2025  –  future  research  and  trend  analysis  http://www.aicpa.org/research/cpahorizons2025/pages/cpahorizons2025.aspx  MACPA’s  Business  Learning  Institute:  Conduct  a  future  firm  to  align  and  inspire  your  partners  and  create  firm  unity  http://www.bizlearning.net/live/i2afutureforums  Strategic  Planning  http://www.bizlearning.net/live/i2astrategicplanning    Customized  Learning  aligned  with  your  firm  strategy,  Comprehensive  Insurance  (Liability  &  Health),  curriculum  development  with  our  in-­‐house  nationally  recognized  customized  learning  consultants  –  Contact  Pam  Devine  p  443-­‐632-­‐2321  e  pam@macpa.org  or