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Professional	

Issues	

Update 	

CPA Horizons 2025	

  By: Tom Hood, CPA,
      CITP, CGMA	


    April 23, 2012	

   Loyola University	

    Columbia, MD
PIU 2012 - CPA Horizons 2025
The Future
PIU 2012 - CPA Horizons 2025
Complexity
 the biggest challenge
facing enterprises from
here on will be the
accelerating complexity
and the velocity of a



                          79%
world that is operating
as a massively
interconnected
system.




                          51%
   5
The “New Normal”




 http://www.endofbusiness.com
http://www.bizlearning.net/live/i2afutureforums/
OUR GYROSCOPE!
What CPAs think about the future	

                                                               30 Future Forums	

                                                                  1,000 CPAs	

                                                           Identified these top trends	





      http://www.bizlearning.net/live/i2afutureforums
PIU 2012 - CPA Horizons 2025
"For Gen Y, training and development is the most highly valued employee benefit.
 The number choosing training and development as their first choice of benefit is
          THREE times higher than those who chose cash bonuses."



                                 Generation Y Born btw 1980 – 2000 (12 to 32)
                                 Generation X Born btw 1965 – 1979 (33 – 47)
                                 Boomers 
Born        btw 1946 – 1964 (48 – 66)
                                 Traditionalists Born prior to 1945 (67 & older)
PIU 2012 - CPA Horizons 2025
PIU 2012 - CPA Horizons 2025
PIU 2012 - CPA Horizons 2025
PIU 2012 - CPA Horizons 2025
3 Critical
Workforce"
Priorities
Rapidly developing
workforce skills and
capabilities
Fostering collaboration
& knowledge sharing
Developing future
leaders




                          16
OUR GYROSCOPE!
In	
  1997,	
  the	
  CPA	
  profession	
  crowd-­‐sourced	
  its	
  future	
  with	
  
            over	
  3,500	
  CPAs	
  in	
  the	
  CPA	
  Vision	
  Project	
  
         That	
  was	
  re-­‐validated	
  in	
  2011	
  by	
  8,000+	
  CPAs	
  

                                            Our core purpose, our reason for
                                                        being is


                                              CPAs...
                                                    
                                          Making sense of
                                          a changing and
                                          complex world.
 Here is what they said…
PIU 2012 - CPA Horizons 2025
The	
  DNA	
  of	
  the	
  CPA	
  
                   Values	
  &	
  Competencies	
  



•    Leadership	
  
•    CommunicaLon	
  
•    Strategic	
  Thinking	
  
•    CollaboraLon	
  &	
  Synthesis	
  
•    Technologically	
  Savvy	
  
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:

                            •  CommunicaLng	
  the	
  total	
  
                               picture	
  with	
  clarity	
  and	
  
                               objecLvity,	
  
                            •  TranslaLng	
  complex	
  
                               informaLon	
  into	
  criLcal	
  
                               knowledge,	
  
                            •  AnLcipaLng	
  and	
  creaLng	
  
                               opportuniLes,	
  and	
  
                            •  Designing	
  pathways	
  that	
  
                               transform	
  vision	
  into	
  reality.	
  
PIU 2012 - CPA Horizons 2025
How are you doing?
24
The




                  25



 The CPA Brand
MANAGING THE SEA CHANGE



•  Change
•  Complexity
•  Compliance
•  Convergence
•  Competition
27



Why MACPA?
MACPA	
  PrioriLes	
  
1.    Connect & Collaborate
2.    Span Generational Divide
3.    Alignment w/ Committees
4.    Legislative Task Force
5.    Leadership Development
6.    Connect Pipeline
29



Connect – Connecting you to your Profession
Students
                          CPA
                                                     CPAs
                                                             30
                       Candidates




        Connecting the pipeline of CPAs
             http://www.facebook.com/TomorrowsCPA
31

Protect – Protecting the CPA
License & Public Interest since 1901
       CPA Day in Annapolis – January 16, 2013
Professional	

 Standards	


                  Federal Laws	

    State Laws & 	

                  & Regulations	

    Regulations
33



Tsunami of 1099K and info returns
dAct
                                 rkpla ce Frau
                           MD Wo

CPAs in Tax
The increase in IRS
activity is swamping our
tax practitioners and
costing them hundreds
of hours in chasing
down IRS notices.




                                                      34
PIU 2012 - CPA Horizons 2025
Private Company Standards
                        	





      Decision due from FAF on May 24, 2012
Results – Legislature 2012
                         	





     http://www.cpalegislativeinsider.com
MACPA Special Task Force

                                         •  Annual cost of Federal
 Offer CPA expertise to the state to        Compliance $1.75 trillion
 help overcome budget issues in bi-      •  Federal burden exceed
partisan, objective manner in order to      costs of health care per
 bring about efficiency, transparency        person by 50%
         and fiscal discipline.
          •  Cost per employee =
                                            $8,086
                                         •  For SMB < 20 = $10,500
                                            per employee
The	
  Idea	
  Store	
  is	
  open	
  –	
  Harnessing	
  the	
  wisdom	
  of	
  the	
  
                                         crowd  	
  




            Mail Suggestions to ideastore@macpa.org
40




Achieve – Achieving Success as a CPA
In our hyper-networked,
  mobile, social, global world,
  the rules and plans of
  yesterday are increasingly
  under pressure; the
  enterprises and individuals that
  will thrive will be those willing
  to adapt in a disciplined,
  unsentimental way.

Generation Flux is a term that describes all of this -
the chaotic business era that we have moved into - as
well as the people who are poised to thrive in this
environment. - Robert Safian - editor FastCompany
It really is about this...
Tom Peters advice on keeping your L > C
44
                       Picture: John Drake - Flickr


 ...where the most important skill is the ability to
acquire new skills.
PIU 2012 - CPA Horizons 2025
According to these young professionals, the
future is one in which CPAs:

● are proactive, flexible, adaptive and
collaborative by nature;
● have regained the trust of their clients and
the public at large;
● have successfully bridged the profession’s
“leadership gap” by focusing on succession
planning, personal growth, and generational
cooperation;
● have created the profession’s premier
global industry standards and best practices;
● have redefined the profession through
work / life integration, collaboration, and a
team-first approach; and
● have earned a reputation as technological
innovators.                                                46
                          


Wisdom from the MACPA Leadership
Academy
 http://www.bizlearning.net/live/i2aleadership/
Achieve – Find Your Edge
                       	





      http://youtu.be/e-zeOD79clA
1. Sight - Ability to see emerging patterns
  and shift perspective when necessary
2. Insight – Ability to think strategically and
  critically to gain insights 
3. Create – Seek high leverage
  opportunities that build on your strengths
4. Communicate - Ability to make your
  thinking visible to others and the ability to
  collaborate inside and outside your
  organization
5. Inspire – Ability to mobilize support and
  engage others involved in doing the work
  to join you in ACTION
                                                  48


    Five Qualities of
    Extraordinary Leaders
PIU 2012 - CPA Horizons 2025
A leader s
job is to set
the context
and provide
hope and
inspiration..."



                  50
Tom	
  Hood,	
  CPA.CITP	
  
                      CEO	
  
  Maryland	
  Associa8on	
  of	
  CPAs	
  
   Business	
  Learning	
  Ins8tute	
  
             (443)	
  632-­‐2301	
  
        E-­‐mail	
  tom@macpa.org	
  
  Web	
  hNp://www.macpa.org	
  
Blog	
  hNp://www.cpasuccess.com	
  
                       	
  

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PIU 2012 - CPA Horizons 2025

  • 1. Professional Issues Update CPA Horizons 2025 By: Tom Hood, CPA, CITP, CGMA April 23, 2012 Loyola University Columbia, MD
  • 5. Complexity the biggest challenge facing enterprises from here on will be the accelerating complexity and the velocity of a 79% world that is operating as a massively interconnected system. 51% 5
  • 6. The “New Normal” http://www.endofbusiness.com
  • 9. What CPAs think about the future 30 Future Forums 1,000 CPAs Identified these top trends http://www.bizlearning.net/live/i2afutureforums
  • 11. "For Gen Y, training and development is the most highly valued employee benefit. The number choosing training and development as their first choice of benefit is THREE times higher than those who chose cash bonuses." Generation Y Born btw 1980 – 2000 (12 to 32) Generation X Born btw 1965 – 1979 (33 – 47) Boomers Born btw 1946 – 1964 (48 – 66) Traditionalists Born prior to 1945 (67 & older)
  • 16. 3 Critical Workforce" Priorities Rapidly developing workforce skills and capabilities Fostering collaboration & knowledge sharing Developing future leaders 16
  • 18. In  1997,  the  CPA  profession  crowd-­‐sourced  its  future  with   over  3,500  CPAs  in  the  CPA  Vision  Project   That  was  re-­‐validated  in  2011  by  8,000+  CPAs   Our core purpose, our reason for being is CPAs... Making sense of a changing and complex world. Here is what they said…
  • 20. The  DNA  of  the  CPA   Values  &  Competencies   •  Leadership   •  CommunicaLon   •  Strategic  Thinking   •  CollaboraLon  &  Synthesis   •  Technologically  Savvy  
  • 21. 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: •  CommunicaLng  the  total   picture  with  clarity  and   objecLvity,   •  TranslaLng  complex   informaLon  into  criLcal   knowledge,   •  AnLcipaLng  and  creaLng   opportuniLes,  and   •  Designing  pathways  that   transform  vision  into  reality.  
  • 23. How are you doing?
  • 24. 24
  • 25. The 25 The CPA Brand
  • 26. MANAGING THE SEA CHANGE •  Change •  Complexity •  Compliance •  Convergence •  Competition
  • 28. MACPA  PrioriLes   1.  Connect & Collaborate 2.  Span Generational Divide 3.  Alignment w/ Committees 4.  Legislative Task Force 5.  Leadership Development 6.  Connect Pipeline
  • 29. 29 Connect – Connecting you to your Profession
  • 30. Students CPA CPAs 30 Candidates Connecting the pipeline of CPAs http://www.facebook.com/TomorrowsCPA
  • 31. 31 Protect – Protecting the CPA License & Public Interest since 1901 CPA Day in Annapolis – January 16, 2013
  • 32. Professional Standards Federal Laws State Laws & & Regulations Regulations
  • 33. 33 Tsunami of 1099K and info returns
  • 34. dAct rkpla ce Frau MD Wo CPAs in Tax The increase in IRS activity is swamping our tax practitioners and costing them hundreds of hours in chasing down IRS notices. 34
  • 36. Private Company Standards Decision due from FAF on May 24, 2012
  • 37. Results – Legislature 2012 http://www.cpalegislativeinsider.com
  • 38. MACPA Special Task Force •  Annual cost of Federal Offer CPA expertise to the state to Compliance $1.75 trillion help overcome budget issues in bi- •  Federal burden exceed partisan, objective manner in order to costs of health care per bring about efficiency, transparency person by 50% and fiscal discipline. •  Cost per employee = $8,086 •  For SMB < 20 = $10,500 per employee
  • 39. The  Idea  Store  is  open  –  Harnessing  the  wisdom  of  the   crowd   Mail Suggestions to ideastore@macpa.org
  • 40. 40 Achieve – Achieving Success as a CPA
  • 41. In our hyper-networked, mobile, social, global world, the rules and plans of yesterday are increasingly under pressure; the enterprises and individuals that will thrive will be those willing to adapt in a disciplined, unsentimental way. Generation Flux is a term that describes all of this - the chaotic business era that we have moved into - as well as the people who are poised to thrive in this environment. - Robert Safian - editor FastCompany
  • 42. It really is about this...
  • 43. Tom Peters advice on keeping your L > C
  • 44. 44 Picture: John Drake - Flickr ...where the most important skill is the ability to acquire new skills.
  • 46. According to these young professionals, the future is one in which CPAs: ● are proactive, flexible, adaptive and collaborative by nature; ● have regained the trust of their clients and the public at large; ● have successfully bridged the profession’s “leadership gap” by focusing on succession planning, personal growth, and generational cooperation; ● have created the profession’s premier global industry standards and best practices; ● have redefined the profession through work / life integration, collaboration, and a team-first approach; and ● have earned a reputation as technological innovators. 46 Wisdom from the MACPA Leadership Academy http://www.bizlearning.net/live/i2aleadership/
  • 47. Achieve – Find Your Edge http://youtu.be/e-zeOD79clA
  • 48. 1. Sight - Ability to see emerging patterns and shift perspective when necessary 2. Insight – Ability to think strategically and critically to gain insights 3. Create – Seek high leverage opportunities that build on your strengths 4. Communicate - Ability to make your thinking visible to others and the ability to collaborate inside and outside your organization 5. Inspire – Ability to mobilize support and engage others involved in doing the work to join you in ACTION 48 Five Qualities of Extraordinary Leaders
  • 50. A leader s job is to set the context and provide hope and inspiration..." 50
  • 51. Tom  Hood,  CPA.CITP   CEO   Maryland  Associa8on  of  CPAs   Business  Learning  Ins8tute   (443)  632-­‐2301   E-­‐mail  tom@macpa.org   Web  hNp://www.macpa.org   Blog  hNp://www.cpasuccess.com