Keeping Up With AccountingProfessional Issues Update2009 Fall EditionTom Hood, CPA.CITPCEO & Executive DirectorBusiness Learning InstituteMaryland Association of CPAs

What is the One Thing for CPAs?

What is the One Thing for CPAs?CPAs… Making sense of a changing and complex world.

“But a time of turbulence is also one of great opportunity for those who can understand, accept and exploit the new realities. It is above all a time of opportunity for leadership.” - Peter Drucker, Managing in Turbulent Times

LC“To keep pace in your industry, let alone excel as a leader, requires your rate of learning to be greater than, or equal to, the rate of change.” -Unknown We think this means a few things:Skills based training isn’t enough, extraordinary leaders must be able to rapidly shift perspectives and change their own mindset.Strategic planning isn’t enough, extraordinary leaders must be strategically thinking, all of the time.Charisma and creativity aren’t enough; extraordinary leaders need to be ambidextrous thinkers – able to think conceptually and sequentially, in the abstract and in the concrete, and able to move quickly between the two.Extraordinary leaders cannot do it alone; they must be adept at building and sustaining large social networks of people engaged in the work.

Skills based training isn’t enough, extraordinary leaders must be able to rapidly shift perspectives and change their own mindset.

Strategic planning isn’t enough, extraordinary leaders must be strategically thinking, all of the time.

Charisma and creativity aren’t enough; extraordinary leaders need to be ambidextrous thinkers – able to think conceptually and sequentially, in the abstract and in the concrete, and able to move quickly between the two.

Extraordinary leaders cannot do it alone; they must be adept at building and sustaining large social networks of people engaged in the work.

Dealing with ChangeStart Here – strong foundation of core values and public perceptionSight – look at the forces outside & inside your organization (and your customers)Insight – what insights do you see, opportunities? What skills do you have and do you need ?Create – What is your desired future, your vision?Communicate – the plan, get approvalsInspire others to join you

What is your line of sight?How far can you see?Look beyond the edges?What patterns are emerging?What insights can be gained?PositionMarketsTimeframeCompany

What do you see?

What’s your vision?

Outcomes for todayUnderstand the trends and issues facing your Profession and your firmLearn about the structure of the CPA profession and how you can influence major trends and issuesGain insights that can help you jump the experience curve as a future leaderLearn about a strategic thinking system to deal with rapid & constant change

Our agendaAct 1The one thing all CPAs need to knowEconomyRegulations & StandardsAct 2WorkforceTechnologyIssues facing CPA firmsIssues facing Business Industry GovernmentAct 3ImageDealing with ChangeWhat’s your one thing & Top five

What will the new normal look like?“It is increasingly clear that the current downturn is fundamentally different from recessions of recent decades. We are experiencing not merely another turn of the business cycle, but a restructuring of the economic order.” – Ian Davis, McKinsey Quarterly March, 2009

The Formula that blew up our 401(k)sSource: Wired magazine 17.03 March, 2009

Guardians cannot keep up with Commerce “Even the regulators can't keep up. A Senate study in 2002 found that the SEC had managed to fully review just 16 percent of the nearly 15,000 annual reports that companies submitted in the previous fiscal year; the recently disgraced Enron hadn't been reviewed in a decade." Source: Wired magazine 17.03 March, 2009

A Month to RememberRescue package fails; Dow takes recordplungeU.S. Bails Out Fannie Mae & Freddie MacDow Jones plunges 504 ptsDow plunges again; gold sees biggest one-day gain in 10 yearsFed proposes bailout packageWashington Mutual seizedGoldman and Morgan Stanley become bank holding companiesRescue package goes to Congress; Wachovia for saleLehman bankrupt; Merrill Lynch soldFed rescues AIGCommon Fund Fails9/149/159/189/219/259/299/3010/19/79/169/17Source: New York Times18

Emergency Economic Stabilization Act of 2008Signed into law on October 3, 2008$700 BillionTARP (Troubled Assets Relief Program

ARRA – American Recovery & Reinvestment Act of 2009

We needWe gotSource: Dr. Anirhban Basu

The new normal – Wall Street?1920 - 20082008 - ????

How we got here

Now what? I like this approach!Time to get tough.Time to get smart.Time to get going.Who’s with us?

Regulations & Standards

Madoff’s auditor Sole Practitioner Accused of issuing audits of Madoff Securities Lied on AICPA membership renewal about peer reviewDavid Friehling, CPA faces 105 years in prisonFor issuing false audit reports

Sole Practitioner

Accused of issuing audits of Madoff Securities

Lied on AICPA membership renewal about peer review

Satyam + PWCRamalinga Raju – CEO created $40 billion in fake billing and cash PWC auditors missed cash accounts?

Infrastructurethe basic physical and organizational structures needed for the operation of a society or enterpriseThe infrastructure for the free market was found to be in disrepair in this latest market crisis and the CPA profession is a critical component

Three DriversFair Market Value (Acctg Standards)Futures & DerivativesInvestment Advisors & Broker-Dealers

Fair Market Value – FAS 159

What will a modernized financial services regulatory scheme include?

What is under the CPA Profession?

police power of the states to protect their citizens vs commerce clause

Another ViewPublic CompanyPrivate CompanyInt’l CompanyFinancialReportingAttest PerformanceStandardsCode of ConductState Oversight & Enforcement of CPA LicenseCPALicensure

Should Congress Set Accounting Standards?

The Real Costs of Changing FMV?“Confidence, trust, and numbers that investors can believe in are the stuff that make or break the capital markets. When investors question the validity of numbers, they sell and wait, rather than buy and invest. Yet those charged with building confidence and trust and presenting numbers that can be believed are under sustained attack -- and they are losing.”- Arthur Levitt, Weakening a Market Watchdog in Washington Post – March 26, 20009

First PCAOB now FAOB?New 5 member oversight board proposed by Congress – March 6th, 2009

Changes in our InfrastructureThe Infrastructure for the CPA Profession is maintained by your Professional AssociationsAICPA & State CPA societies (MACPA)

US TreasuryMD ComptrollerMD ComptrollerMD ComptrollerCAQCourtesy of the Maryland Association of CPAs – 2008 edition Drawing by Carol Kirwan, CPA

Standards ChangesAS 5 - PCAOBIFRS – SEC International gets legsFair Value AccountingXBRL – SEC mandatoryCodification Project – FASBClarity Project – ASBConvergence with internationalReliability Project (comps & reviews)DOL 403 (b) PlansInternal Control – COSOFin 48 effective 2009Form 990 ChangesFraud & Forensic SAS 99

FraudMadoff scandal has created a major focus on fraudExtra attention to identifying fraud opportunities during the planning phase of an engagementRobust SAS 99 work is requiredProfessional skepticismMeaningful brainstorming sessionsNo “checklist” mentality

“No man’s life, liberty, or happiness are safe when the legislature is in session” – Mark TwainSection 7216 Circular 230/Section 6694 Proposed regulation/registration of tax return preparers SSTS exposure draftTax strategy patents legislationLatest developments on e- filingExtended due dates for returnsProposed Consumer Financial Protection Agency legislationCell phone developmentsTrust fee deductibilityEstate tax developmentsFTC red flags

Maryland Tax Preparer LawThreats to your CPA LicenseWell intentioned consumer groupSolving a problem – low income tax fraudsBut…creating problems for CPASLicensed / Certified Tax Preparers would be confusing to the publicTax Preparer Exam using ACAT designation (ATA, ATP) opens door for second tier licenseMisinformation / confusion

Licensed / CertifiedTax Preparer?

Maryland Individual Tax Preparers ActRequires registration and examination of all tax preparersRegistered Tax Preparers (cannot use terms licensed or certified)CPAs and staff are exempt (along with other Circ 230 Practitioners)Out-of-state CPAs exemptIndependent Regulatory Exam requiredSafe Harbor disclosure required“I am not a CPA”MACPA seat on State Board

CPA Mobility Legislative Activity 200945 States in 2 years!WAVTMEMTNDMNORNHIDWISDMANYWYMIRICTIAPANENVNJUTOHDE INILWVCOCAVAMDKSMOKYDCNCAZTNOKARSCNMMSALGAAKTXLAPRHIFLGUV2009 -2010 Anticipated LegislativeActivityMobility Enacted - 45Legislation Introduced - 1No Formal ActivityMobility Enacted Only for OtherMobility States -2 (GA PA)AICPA March 2009

Leg / Reg Changes you need to know!New Mobility LawMaryland Individual Tax Preparer ActNew Corporate Reporting RequirementsPeer Review Requirement – October 1stNew CPA Exam RequirementsNew CPE regulationsMandatory e-fileNew Non-Profit Audit Requirements > $500,000CPA Day in AnnapolisJanuary 20, 2010

New Mobility Law

Maryland Individual Tax Preparer Act

New Corporate Reporting Requirements

Peer Review Requirement – October 1st

New CPA Exam Requirements

New CPE regulations

Mandatory e-file

New Non-Profit Audit Requirements > $500,000

Mandated Electronic Filing of Personal Income Tax Returns (SB 96 / HB 810)2009 Returns – if the preparer files more than 300 returns2010 Returns – if the preparer files more than 200 returns2011 Returns – if the preparer files more than 100 returnsComptroller may grant hardship exemptionPenalties for noncompliance - $50 each return, $500 maxTaxpayer may opt out

Improving Your Infrastructure The CPA LicenseThe AICPA & your State CPA Society

CPENew approved fields of studyCPE = CPEChanges in rules for accounting educatorsEffective May 18, 2009

52History of CPA LegislationInterstate Practice & Uniform Accountancy Act1993 MACPA passes MD LLC & LLP ActsRise of special interests & non-CPAsMACPA stops several attempts to amend 1924 lawNon-CPAs begin attempts at 2nd Tier licenseMACPA tries to pass CPE Bill in 1974 & 1975KEY In the Beginning...Sarbanes-Oxley Act of 2002Rights & RecognitionPrivilege of Self-RegulationRight to Sole Control over an Area of PracticeMax Teichman, Frank Blacklock & William RogersGOALS/RESULTSAG opinion of 1981Grants rights to non-CPAs for Reviews & Comps.SB 560 DefeatedMaryland Corporate Accountability ActMACPA requests reversal of AG Opinion – “This is not an audit” language addedHB 1296 Mobility Passes• CPA Bill signed April 10, 1900• MD is 3rd state (NY & PA)MACPA wins use of “consultants” in firm letterhead at State BoardPROJECTS/STRATEGIESMaryland Special SessionOct – Nov 07State Board of Accountancy formedAccounting Reform task Force addresses SOXMaryland becomes the 1st state to restrict practice for CPAsMACPA defeats Sales Tax on ServicesKEY EVENTSHB 1261 re-writesCPA Law - 1986State Board HearingMay 1, 2003Amends Corporate Tax Reporting Bill from special sessionUAA MACPA passes non-CPA OwnershipMACPA amendments to ed requirements failPEOPLEMACPA Forms Task Force and surveys members88% Sub Equivalency76% Peer Review & Safe Harbor68% Non-CPA OwnershipNew simpler CPA exam Education RulesState Boardpasses qualify Peer Review for CPE creditTerry Hancockchairs Legislative CommitteeLarry Kamanitz chairs Legislative CommitteePRODUCTS/SERVICES/SITESDawson Grove chairs Legislative CommitteeAllen Deleon chairs Legislative CommitteeGov. John Smith signs CPA BillApril 10, 1900Quality Review Legislation failsMACPA first attemptto rights to auditMACPA Passes Mandatory CPE Bill150 Hours Ed Requirement passesEffective date is January 1, 1999MACPA Founded 1901LEARNINGMACPA passes 1924 LawUAA MACPA passes 1 yr Experience RequirementHB 1223 Mandatory Peer ReviewComputerized CPA examSeparate Fund Bill passedDateline1900198719741976190119221924198120051993200620032007200820011999Maryland Association of CPAs

Privilege of Self-Regulation

Right to Sole Control over an Area of Practice

Sales Tax

120 – 150 Hour Proposal 120 hours to sit for CPA Exam 150 hours required for licensure Five – Six years to complete CPE required to stay current

120 hours to sit for CPA Exam

150 hours required for licensure

Five – Six years to complete

CPE required to stay current

The CPA AgendaStop MSA repealing Peer ReviewStop Sales Taxes on CPA servicesStop efforts to liberalize tort laws (lawsuit abuse)State Board 120/150 legislation?Oppose Combined Reporting?CPA Day in AnnapolisJanuary 20, 2010

IFRS – International Financial Reporting StandardsNot if but when…Goodbye GAAP?Think about this – If SEC timeline is 2014 – what year do you have to convert to show three years of comparable f/s?

SEC Roadmap released

Corporate Conversion Timeline

Convergence ≠ Sameness US GAAPRules basedBased on a GAAP hierarchy (level A – D)Primary accounting standard setting body is the FASBAccounting guidance and interpretation is provided by FASB, SEC, AICPA and EITF IFRSPrinciples basedNo hierarchy, consists of IASs, IFRSs & interpretationsStandards and interpretations approved by the IASBInterpretations of IFRIC and its predecessor the SIC25,000 pages vs 2,000 pages

IASB/FASB ConvergenceHope to complete convergence by 2011Outstanding Issues:Revenue recognitionFinancial statement presentationLeasesFinancial instrumentsLiabilities and equity distinctionsConsolidationsDerecognitionPost-employment benefits60

IFRS Readiness Survey: March 2009Organizations have made little progress toward preparing for adoption of IFRS Currently most members do not believe the benefits of IFRS outweigh the costsMembers working for foreign-owned companies are the exceptionMembers favor a delay in the currently proposed SEC timelineAgain, members working for foreign-owned companies are the exception61

Internationalizing the CPA ExamExpanding locations for U.S. CPA Exam outside of U.S.Application, security & licensure emphasis will model U.S. requirementsNext StepsNASBA consensusParallel implementation planningContract/Plan approval targeted for AugustLaunch targeted for mid-201062

Are you ready for International?According to a UPS study, “Roughly 33% of U.S. small businesses participate in cross-border trade““Almost half of small businesses will be involved in global trade by 2018 “- Intuit’s Future of Small Business Report“Nearly one-third of you (CPA firms < 10) have clients doing business on an international level”Greg LaFolletteCPA Technology Advisor

Greg LaFollette

Potential Versions of Private Company IFRS

Workforce / Pipeline

Pipeline - Good News20% avg increase in Graduates & enrollments!

Four Generations in the WorkplaceIssue: Generational DifferencesMatures 64 - 100Boomers 45 - 63Gen X 29 - 44Millennials 10 - 28Which one are you?

Staff Shortage + Four Generations in workplace = Trouble!StaffShortage

'The bottom line is this: if you understand the Net Generation, you will understand the future.' And as my son often reminds me, the future is now." The New York Times, Book Review, Sunday, December 21, 2008

A Vision of Students Today

8 Norms of the Net GenFreedom of ChoiceCustomizationScrutinyIntegrityCollaborationEntertainmentInnovationSpeed

Deloitte’s Global Workforce Advice• Long-term career development and multiple experiences within a single organization• Sense of purpose and meaning in work• Availability and access to mentors across the company. (The focus should not only be on making senior staff mentor younger associates, but also ensuring that people connect and share experiences across all levels of the organization, and across relevant departments and areas of expertise.)• Work-life flexibility• Tech-savvy work environment (for example, access to online problem-solving and learning tools)• Open social networks that embrace open and honest communicationSource Deloitte Global Manufacturing survey

Biggest Issue Facing NYPNsBridging the Gap between college & real worldUnder-Developed Skill SetsLeadership & CommunicationTime Management & OrganizationConflict ManagementSupervisory SkillsWork-Life BalanceLimited Networking OpportunitiesIntimidationCPA ExamLack of a Voice in Profession

Overcoming Downturn-Related Talent ChallengesReassessing business objectives in light of changing market conditionsImplementing changes to existing organization models --- and then finding people with the right knowledge & skillsRecalibrating headcount while focusing on the pivotal talent needed to achieve business objectivesUnderstanding how the external talent market has & will continue to change75

Are You Asking The Right Questions About Your Talent?Have we aligned our talent priorities to our business objectives?Have we validated our talent priorities?Do we have consensus on the 5 most pivotal positions in each critical area of the business?Do we have an accurate perspective about the competence of our current workforce when measured against business objectives?76

Are You Asking The Right Questions About Your Talent?How much do we really know about the fast-changing external talent marketplace?Are our talent requirements tailored to the values & expectations of our pivotal talent?Do we know what return we’re getting on our investment in talent?77

Motivating Your Staff in a Recession

Technology

Information Security ManagementPrivacy ManagementSecure Data File Storage, Transmission and ExchangeBusiness Process Improvement / Work FlowMobile & Remote ComputingTraining & CompetencyIdentity & Access ManagementImproved Application & IntegrationDocument, Forms, Content & Knowledge ManagementElectronic Data Retention Strategy

Transparency Now! – A Wired Manifestowww.xbrl.orgSource: Wired magazine 17.03 March, 2009

Technology & Web 2.0By 2010, Millenials/Gen Y-erswill outnumber Baby Boomers.

Social Media

Name three “change the world” events where social media made a difference?

The New MathSocial Networking (Old)Social Media (New)A change in the way we build relationships+=Source: Matt Goddard, CEO R2integrated

Old School vs. New SchoolChamber of CommerceClass ReunionsFriends and FamilyE-mailIndustry MeetingsNewsletters

This is a Social Network

and the Network Effect…Metcalf’s Law"states that the economic value of a network increases like the square of the number of its nodes, or the law of increasing returns. Usually, when people share a piece of equipment, the return diminishes. When more people are engaged in the network, more value is returned to the user."

It’s all about your WhuffieWhuffie is the culmination of your reputation, influence, bridging and bonding capital, current and potential access to ideas, talent and resources, saved-up favors, and accomplishments.- Tara Hunt “The Whuffie Factor”

Five Learning Trends for 2009Mobile LearningDIY - Do-it-Yourself LearningFlexible Learning EnvironmentsVirtual WorldsGames & SimulationChief Learning Officer Magazine – January 2009

FASB is there!

Accounting Educators in Second LifeDr. Mike KratenSuffolk UniversityDr. Robert BloomfieldCornell UniversityDr. Steve HornikUniversity of Central Florida

ToolsSocial NetworkingBlogs / WikisMicroblogsVideo & Content SharingSecond Life

More ways to CONNECT with MACPALinked-In – MACPA GroupFacebook – NYPN GroupMACPA on TwitterTom on TwitterBill on TwitterYoutube videos from MACPASlideshareVisit us in Second Life

Issues Facing CPA firms

Say what?“An increase of larger firms will result from an increase in mergers. Accounting firms will look more like law firms in terms of size.” -Marc Rosenberg “There will be more large firms.” – Marc Rosenberg“Mergers and acquisitions will increase.” – Jeff Pawlow, The Growth PartnershipIPA Consultant Predictions – Jan, 200647,000 to 40,000

PCPS/TSCPA MAP Survey 2009Top Five Issues Facing Firms 21+Client RetentionPartner AccountabilitySuccession PlanningMarketing / Practice GrowthRetaining Qualified Staff

Provided by the Business Learning Institute ©PCPS/TSCPA MAP Survey 2008Top Five Issues Facing Firms

2009 Top Issues – 21+ Professionals

Top 20 Reasons to Stay with a Firm4 out of top 513 out of 20Have nothing to do with $$$ andeverything to do with culture!

Provided by the Business Learning Institute ©To put it another way – firms are under investing significantly in the things that really make a difference.

Characteristics of Over-Achieving FirmsProvided by the Business Learning Institute ©Outstanding Vision, Leadership / ManagementCommon Focus / CultureSpecializedSustainablePerformance DisciplineHigh Leverage of Highly trained staff

7 Keys to Success in CPA Firm ManagementLeadershipTechnologyLearning OrganizationMarketing & Business DevelopmentA great Place to WorkClient Service & SatisfactionStrategy Execution105Source: Rick Telberg – Bay Street Group

CPAs in Business, Industry, Government & NFP

The Year of the CFOAs financial skills are valued more highly, CFOs will make it to the corner office in greater numbers than before. Recession, credit crunch and the increasingly complex nature of global companies will all play directly into the bean counter’s hands.Source: The Economist Magazine The World in 2009 Nov, 2008

CFO WorriesCFO Magazine/Duke Global Business Outlook Survey – December 2008Consumer demandCredit markets & interest ratesHousing market falloutNew administration & CongressFinancial regulationVolatility of the dollarCost of nonfuel commoditiesCost of fuelForeign competitionEnvironmental regulationTop Concerns About the Macro Economy

CFO WorriesCFO Magazine/Duke Global Business Outlook Survey – December 2008Ability to forecast resultsMaintaining morale/productivity during the downturnBalance sheet weaknessCost of health careAttracting & retaining qualified employeesSupply-chain riskManaging IT systemsPension obligationsProtection of intellectual propertyData securityTop ConcernsAbout Their OwnCompanies

A Hard Job in Hard Times“Doing more with less has been the mantra of the last half-dozen years.”VP of Finance“Quite simply, we are being required to do more with less resources.”Director of Tax

Getting the Most from Finance Talent84% say keeping their staff engaged & motivated will be important80% say managing staff workload & managing their own workload will be important31% expect to spend less time on finance & staffing development – an activity critical for building a strong & value-added finance functionInfluenced by those expecting to move within 2 years75% or respondents said the financial crisis & economic turmoil have changed their on-the-job responsibilities111

Which of the following external factors have had the greatest impact on your company’s function within the past year?Percentage of respondentsNote: Percentages may not total 100%, due to rounding.Note: Respondents were asked to select their top three choices.

Compared with the previous year, which activities do you expect your finance staff to devote more time to over the next 12 months? Which activities will your staff spend less time on?

What do you expect you will have to do within the next 5 years to pursue your career goals?

What challenges do you expect will impact your career the most over the next 12 months?

IFRS Opportunity? – Meet Joe Box, CPA - CFO of Joe Money Machinery“Well, the IASB is coming out with a simplified version for private companies. With IFRS, you mark-to-market more assets. We're a 72-year-old company that has real estate on our books at historical cost, so there could be a big benefit in IFRS based on the substantially higher fair market value for that property. Any private-company CFO should be knowledgeable about it, to determine whether to consider adoption.”“But even more importantly, it has been my objective that our key bankers consider me knowledgeable in the issues important to their commercial portfolio. XBRL is another one.”

CFO OpportunitiesBusiness process efficiency – LEANCash flow & FinancingRisk ManagementBudget ScenariosYoung Professionals – reverse mentoringIFRS & XBRLSustainability Reporting

Image of the CPA

The future success of the CPA profession relies a great deal upon public perception of CPAs' abilities & roles - CPA Vision Project

Image is better than pre-Enron highs

Attitudes toward CPA CredentialMore confident in a job done by a CPA than if it were done by an accountant not a CPA.Accountants certified by non-U.S. organizations, such as the Association of Chartered Certified Accountants (ACCA), are just as qualified as CPAs.CPA requires more rigorous training and testing than any other financial credential.121

Concern About Accounting Fraud Has DecreasedWhat do you think is the biggest problem facing corporate America today?Top 3 issues among BDMs and investors:Global competitivenessCost of healthcare benefitsEconomic growth122

Top 3 issues among BDMs and investors:

PhysiciansCertified Public Accountants (CPAs)FinancialplannersTaxadvisorsAttorneysChief Executive Officers (CEOs)Chief Financial Officers (CFOs)Commercial bankersAccountants who are not CPAsInsurance agentsInvestment bankersAuditorsManagement consultantsStock brokersMortgage brokersHedge fund managersOverall Evaluation of Professionals Among Investors123

...And Business Decision MakersphysiciansCertified Public Accountants (CPAs)Chief Executive Officers (CEOs)Chief Financial Officers (CFOs)Tax advisorsFinancial plannersAttorneysAccountants who are not CPAsAuditorsCommercial bankersInvestment bankersManagement consultantsInsurance agentsStock brokersMortgage brokersHedge fund managers124

BDM & Investor Data ConfirmQualitative FindingsCPA Attribute Ratings125

...As Do CPA & Young Professional DataCPA Attribute Ratings126

+Importance of attribute when evaluating business professional-How well attribute describes CPAs+−CPAs Strongest on The Two Most Important AttributesHigh Importance/Low DescriptivenessHigh Importance/High DescriptivenessLow Importance/Low DescriptivenessLow Importance/High Descriptiveness127

Investor Satisfaction with CPAs Is HighSatisfaction with CPA(s)94%128

CPAs Closely Associated with Core Values“CPAs are the guardians of financial truth.” – Senior SEC Official“CPAs are not trying to finesse the numbers, they are interested in painting the most accurate picture they can with the information they have.” – Institutional Investor“I associate CPAs with a high standard of ethics. There’s a certain love of a kind of order.” – Senior SEC Official“CPAs are the financial experts needed to put their stamp on the financial statements that allow the capital markets to work.” – Senior IRS Official129

“CPAs are the guardians of financial truth.” – Senior SEC Official

“CPAs are not trying to finesse the numbers, they are interested in painting the most accurate picture they can with the information they have.” – Institutional Investor

“I associate CPAs with a high standard of ethics. There’s a certain love of a kind of order.” – Senior SEC Official

“CPAs are the financial experts needed to put their stamp on the financial statements that allow the capital markets to work.” – Senior IRS Official

Perceptions of CPAs Largely Consistent Across All AudiencesRank

“CPAs ARE the DISCIPLINE in business!”Jim Collins

Dealing with ChangeChange is the law of life. Those who look only to the past or present are certain to miss the future." - John F. Kennedy

Q: What is the # 1 Issue facing all CPAs:A: Keeping up with changing standards & regulations “As it relates to science and technology, the rate of change in the next decade, is likely to be 4 to7 times faster than in the last decade. If it is 4x faster it would be like planning for 2006 in 1890, if it is 7x faster it would be like planning for 2006 in 1670.” -Expert on Education Panel, The Aspen Institute, 2007

Dealing with Change

CPA Competencies Needed2008 – Deloitte Research1998 – CPA Vision ProjectChange Management (C)Strategic Ability (S)Critical Thinking (S)Business Perspective (C)Organizational Agility (C)Dealing with Ambiguity (S)Communication & LeadershipStrategic & Critical ThinkingFocus on the Customer, Client, and MarketInterpretation of Converging InformationTechnologically adeptC – CatalystS - Strategist

What do CPA Leaders look like?

CPA Professional 2.0Learning & staying on the cutting edgeManaging my careerDoing my workInteracting with peersBecoming a leader in my field

MAP it! think, plan, act, learn…

CPAtemplates to help you with...24

synthesize information

manage processes

communicate effectively

You cannot stay on the summit forever; you have to come down again. So why bother in the first place? Just this: What is above knows what is below, but what is below does not know what is above. One climbs, one sees. One descends, one sees no longer, but one has seen. There is an art of conducting oneself in the lower regions by the memory of what one saw higher up. When one can no longer see, one can at least still know. -Rene' Daumal

Create your future!

Connect – Protect - Achieve“Association members earn, on average, $10,000 more per year than non-members”And“are 19% more likely to say they are “very-satisfied” with their jobs than non-members”Where the Winners Meet Study by the William E. Smith Institute for Association Research

Tom Hood, CPA.CITPCEOMaryland Association of CPAsBusiness Learning Institute(443) 632-2301E-mail tom@macpa.org