The document discusses the rise of digital CPAs and harnessing the power of cloud computing. It summarizes Gregory LaFollette's background working in public accounting, consulting, and as an author and speaker on accounting technology issues. It then outlines trends driving changes in accounting towards digitization, virtualization, and transformation of services. CPAs are evolving their practices from a necessary compliance function to a higher value business advisory role by adopting new technologies and business models.

1. The Rise of the Digital CPA
Harnessing the Power of the Cloud
presented by
Gregory L. LaFollette, CPA.CITP, CGMA
Strategic Advisor

2. Gregory L. LaFollette, CPA, CITP, CGMA
Semi-Retired Vice President of product strategy – CPA2Biz
Author, Speaker, Thought-leader, Accounting Technology Hall of Fame Member
Former
• Eide Bailly, LLP – Senior Manager, Tax and Technology Consulting (6 years)
• LaFollette Consulting, LLP -- Consultant to the industry (12 years)
• The CPA Practice Advisor -- Executive Editor (6 years)
• Thomson Reuters (Creative Solutions) -- Vice President - Product Strategy (5 years)
• LaFollette, Jansa, Brandt & Co. , LLP -- Tax & Technology partner (23 years)
• AICPA Committees
• Journal of Accountancy – Technology Advisory Board
• Prior Service:
– CITP Credential Committee – Chair (7 years; Member 4, Chair 3)
– TECH+/Practitioners Conference -- Planning Committee (6 years)
– National Accreditation Commission – ad hoc (3 years)
– National Tax Education Program (AICPA/UI) -- Graduate and former Staff Lecturer (12 years)
– Top 10 Technology Initiatives -- Review Committee (5 years)
– Microcomputer Advisory Services Committee (3 years)

3. Who we Are / What We Do
How we Got to Where we Are
Whitepaper
Agenda

4. Who we Are

5. About CPA2Biz
 AICPA subsidiary, Formed in 2001
 Markets all AICPA products and services, manages AICPA affinity programs, manages
AICPA web properties and leads key AICPA technology initiatives
 AICPA Store (www.cpa2biz.com) is ranked by Internet Retailer as one of the Top 500 e-
commerce sites in the US.
 Built one of the leading distribution channels to the profession through its Trusted
Business Advisor Solutions program—a portfolio of web-based solutions, training,
resources, and alliance programs transforming the CPA-client relationship.
 Headquartered in New York, NY with technology and engineering offices in Santa Clara,
CA, sales office in Dexter, MI, and service and support offices in Durham, NC.

6. Overarching Principle
We are the leader in guiding the profession’s migration
to the cloud through change management, business
process education and product and service curation.

7. How we Got to
Where we Are

8. Painful Changes
1965 -
1975
All manual
to Service
Bureaus
1975 -
1985
Service
Bureau to
Mini-
computers
1985 –
1995
Mini’s to
Micro’s
1995 -
2005
DOS to
Windows
2005 –
2015
Premise-
based to
SaaS

9. Why it Works
CPA2Biz
Practices
PlatformsPartners

10. Tax & Accounting Executive Roundtable
This exclusive CEO-level event is unlike any
other. Hosted by CPA2Biz and the AICPA, the
event brings together America's top:
• thought leaders
• financial minds
• SaaS entrepreneurs
• government regulators
• leadership from top accounting firms
• State CPA Societies
• and respected journalists...
to address the accounting profession's "move to
the cloud."
New York, NY - January 28-29, 2014

11. Digital CPA Conference

12. Geoffrey Moore

13. Whitepaper Released
APPS
http://www.cpa.com/conference

14. Three Mega-trends
Digitization Virtualization Transformation

15. Digital Disruption in Accounting
• Digitization
– From Paper to Paperless
– Cloud Computing
– Overcoming barriers of productivity
• Virtualization
– From Physically Present to Digitally Present
– Systems of Engagement
– Overcoming barriers of location
• Transformation
– From compliance vendor to trusted advisor
– Business Intelligence
– Overcoming barriers of commoditization
Three Mega-Trends that Matter

16. Necessary Evil
Establishing
the Practice
Expanding the
Practice Deepening
the Practice
The Evolution of Accounting Services

17. Stage 1 - Necessary Evil
• Paper intensive, Place specific
Defining
Characteristic
• Courtesy to clients, no riskReason to Do
• Lack of profitability, digital disruptionReason to Move On
• Migrate IT systems to the CloudInvestment Required

18. Stage 2 - Establishing the Practice
• Paperless workflowsDefining
Characteristic
• Profitable business modelReason to Do
• Desire to growReason to Move On
• Online Systems of EngagementInvestment Required

19. Stage 3 - Expanding the Practice
• Online communication & collaboration
Defining
Characteristic
• Reach & frequency of service deliveryReason to Do
• Expand into higher margin servicesReason to Move On
• Business IntelligenceInvestment Required

20. Stage 4 - Deepening the Practice
• Trusted advisor status
Defining
Characteristic
• High-margin project workReason to Do
• Expand into new target marketsReason to Move On
• New target market initiativeInvestment Required

21. The Evolution of a Practice
A Necessary Evil
A Viable Practice
A High-Growth Practice
A High-Value Practice

22. Is Your Firm Trapped in the Pull of the Past?
PULL OF THE PAST
• Paper Checks
• Mailing Lists
• Phone Trees
• Phone Calls
• Email
• Voicemail
• Attached Files
• Text Documents
• PowerPoint
• Spreadsheet
• Desktops
• Org Charts
• Published Reports
• Conferences
THE CALL OF THE FUTURE
• Online Bill Payment
• Twitter
• Facetime
• Skype
• Texting
• Presence Detection
• Cloud Sharing
• Images, Video
• YouTube
• Events
• Apps
• Tablets
• Social Graphics
• Shared Content

23. Automation
Commoditization
DifferentiationSpecialization
Optimization
21st Century Darwinian Dynamics

24. Why Target Market Focus?
• Clients aggregate into market segments
– Communities with shared interests
– Self-organized around industry, geography, & profession
– Who talk to each other before making buying decisions
• Two lessons from Marketing 101
– Cost-effective growth is impossible without target market focus
– Tipping point dynamics accelerate your success
• Target marketing success factors
– Participate in the segment’s relationship network
– Develop domain expertise relevant to the segment
– Over-deliver to create strong reference accounts
– Encourage word-of-mouth referrals

25. Action Plan
• Select a target market focus
– Big enough to matter
– Small enough to lead
– Good fit with your skills and interests
• Create “new client” onboarding
– Paperless standard
– Systems of record in the cloud
– Document exchanges in the cloud
– Other facilities as needed
• Migrate existing clients opportunistically
– Take the early adopters when they are ready
– Eventually end-of-life paper-based services

26. Evolving CAS: Change Management
When and How will You Make the Transition?
CHASM
EARLY
MARKET
TORNADO
MAIN
STREET

27. Three Proven Approaches
• Visionary
– Go ahead of the herd for competitive advantage
– Spend big to secure top-notch team & great support
– Drive change from the top down
• Pragmatist
– Go with the herd to reduce risk
– Spend moderately to secure market-leading solutions
– Manage change around specific use cases & bellwether teams
• Conservative
– Go after the herd to reduce cost
– Spend frugally to secure basic services
– Manage change around vendor-led training sessions
No right answer—your call

28. Wrapping Up
• Model for Evolving a CAS Practice
– A Necessary Evil
– A Profitable Practice
– A High-Growth Practice
– A High-Value Practice
• Enabling Technology Investments
– Digitization
– Virtualization
– Transformation
• Change Management Strategy
– Visionary
– Pragmatist
– Conservative

29. Resources at www.CPA.com

30. REMEMBER

31. REMEMBER

32. REMEMBER

34. Thank You!!!