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MACPA 2013 Spring Professional Issues Update
The document is an update presented by Tom Hood, CEO of MACPA, discussing various professional issues and changes affecting the accounting sector, emphasizing the importance of technology and collaboration in addressing challenges. It highlights the fiscal state of Maryland, the federal budget deficit, and the future of CPA practices amid evolving regulations and innovations. Additionally, it outlines considerations for legislative changes and the potential impact of social media and technology on the accounting profession.
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MACPA 2013 Spring Professional Issues Update
- 1. Tom Hood, CPA,CITP, CGMA CEO MACPA & the Business Learning Institute MACPA Town Hall & Professional Issues Update for MEMBERS
- 2. http://macpa.conferences.io Ask and answer questionsthroughout the day here… Conferences.io was used to engage our members and encourage open Q&A and feedback with this exciting new technology we will begin incorporating into strategic planning and CPE courses for engagement and collaboration.
- 3. Respond to aPoll Ask a Question Vote up a Question http://macpa.conferences.io
- 4. Segments of our members
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- 7. Source: WTF What’s the Future of Business by Brian Solis What I have been thinking about
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- 10. What happens when CPAs are overwhelmed?
- 11. When we need to be doing this?
- 12. 12 Our Sponsors MACPA Innova1on Summit
- 13. www.SlideShare.net/thoodcpa #PIU13 #MACPA @tomhood @MACPA Download today’s slides at …
- 14. Message from our Chair
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- 16. Insights to Ac0on “One without the other is either useless or destruc0ve”
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- 18. The new “Big Four” • Standards & Leg/Reg • Technology • Genera0ons in workplace • Innova0on
- 19. The US Economy Schumpeter's Curve of Crea0ve Destruc0on
- 22. Legisla0on & Regula0on hTp://cpa.tc/1ut • Federal – Fiscal Cliff • State • Budget Deficit • Sales Tax on Services • Tort Reform
- 23. First the facts about Fiscal Cliff, Sequester and Fed Budget
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- 25. Accoun&ng bodies hail G20 emphasis on public sector repor&ng DATA Act & Financial Industry Transparency Act using XBRL
- 26. What's at Stake? TheUS Government’s Financial Statements and the Country's Fiscal Health
- 27. Revenue = $2.4 trillion Expenses = exceeded revenue by $1.3 trillion 2011 Financial Statements
- 28. 2011 Financial Statements Assets= $2.7 trillion Liabili1es= $17.5 trillion Accumulated deficit= $14.8 trillion
- 29. U.S. financial statementsdiffer from other organizations Most financial statements show obligations or liabilities on balance sheet US government’s financial statements do not include Social Security and Medicare • Footnote disclosures • Not reflected as liabilities
- 30. Reality of futureobligations These future obligations equal: $46.3 trillion in additional deficit Plus $14.8 trillion cumulative deficit Total deficit: $61 trillion deficit $61 trillion is the equivalent of: Every household in America owing the full cost of two new homes and not getting to live in them
- 31. State of Maryland Budgetvs Financials Budget surplus $363 Million vs Financial deficit $1.2 Billion 2
- 32. 2011 Financial Statements -5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2009 2010 2011 Revenue Expenses Deficit Revenue = $33.5 billion Expenses exceeded revenue by $1.2 billion Note:The Financial Statement Deficit is down from the 2009 highpoint of $2.9 billion 6
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- 34. www.macpa.org Net Assets decreased by $7.2Billion in past 5 years 9
- 35. www.macpa.org Maryland’s unfunded Pension obligationsof $28.5 Billion Source: 2011 CAFR Footnotes 15 & 16 10
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- 38. The Future is Bright Students from U of B
- 39. Where were you on January 16th? 2014 CPA day – January 15, 2014
- 40. Sales Taxes on Services?
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- 44. It’s really a numbers game 2,500 188 90 3
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- 46. State Board of Accountancy 1. Projec0on of status on CPA Board fund. How it will be monitored to determine when a fee increase is needed? The fund must cover IT improvement costs. 2. Review of peer review process for monitoring fail and 2nd pass with deficiency reports. 3. Review of the exam applica0on process. Determine if processing should be con0nued in-‐house or contracted out to a third party.
- 47. #GoodBills • Separate funding for the State Board • Experience requirement to make Maryland CPAs compa0ble with UAA (Uniform Accountancy Act) • Ethics requirement for CPE • Mandatory peer review and prac0ce quality • Exemp0on for CPAs from Maryland (and federal) tax preparer regula0on • Prac0ce mobility • AG opinion allowing CPAs to use Social Security numbers for tax services • 120/150 CPA exam legisla0on • Restricted audits, reviews, and compila0ons to CPAs and added safe harbor for compila0ons • State Board of Public Accountancy reauthoriza0on
- 48. #BADBills • Sales tax on accoun0ng and tax services (defeated several 0mes) • Maryland corporate accountability (SOX and 404 for private companies and non-‐profits) • Debt counseling registra0on by CPAs • Maryland Tax Prepapers • Compara0ve fault (several 0mes) • Elimina0on of audit requirements for Maryland cemeteries
- 49. Advocacy – If not you, who?
- 50. Standards • Interna0onal – IASB & IFRS • FASB & PCC • AICPA & FRF – SME • ASB – Clarity (12/15) • GASB Pension • PEEC hTp://cpa.tc/1us
- 51. FAF, XBRL and You
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- 53. Form 990 Data Transparency • NFP tax returns are public informa0on • And…they’re not easily searchable (PDFs) • 30% of Form 990s are filed electronically… • Then get printed and scanned and loaded on disks. • President Obama’s 2014 budget calls for electronic filing of Form 990, and… • Requires IRS to publish data in a machine readable format (XBRL?)
- 54. FASB Industry Taxonomy Project • Develop industry specific taxonomies • BeTer suited for each industry • Industries par0cipa0ng include: • Insurance • Banking • Brokers and Dealers • Real Estate • NFPs
- 55. FASB NFP Taxonomy Project -‐ Par0cipa0ng Organiza0ons • AICPA • CFA Ins0tute • NACUBO • Thurgood Marshall College Fund • FAF • MACPA
- 56. The process… • Iden0fy elements and concepts unique to non-‐profit accoun0ng that don’t currently exist in the US GAAP Taxonomy. Such as: • Split-‐interest agreements • Pledges receivable • Temporarily restricted net assets
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- 59. Me and Geoffrey Moore
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- 61. From: Systems of Record To: Systems of Engagement
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- 64. "The speed of change makes you uncomfortable on a regular basis," he says. "That's so difficult for people who are paying mortgages, buying cars, trying to give their kids the things they had, to get them through school. You want to feel confident in the last 15 years of your career that arer 25 or 30 years of effort, it's just going to work," he says. "But it isn't so. And I don't think you ever get over the fear of not knowing.” – Doug Gould Ad Exec
- 65. Why should you care about Social Media? “In-‐forming is the individual person's analog to open-‐sourcing, outsourcing, insourcing, supply-‐chaining, and offshoring. Informing is the ability to build and supply your own personal supply chain—a supply chain of informa1on, knowledge, and entertainment. In-‐ forming is about self-‐collabora1on— becoming your own self-‐directed and self-‐ empowered researcher, editor, and selector of entertainment. – Thomas Friedman
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- 68. 34 MACPA’s Social MediaMa 145,714 views 80,568 views 450 members 4,966 followers 2,049 connections 571 connections Top 50 Business Blogs - 2011 Top Accounting Blogs – 2009, 2010, 2011, 2012
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- 70. The conversa0on con0nues… hTp://cpa.tc/214
- 72. Tipping the adop0on curve?
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- 74. Innova0on for CPAs • Big Four Trends – Social – Mobile – Cloud – Big Data (XBRL) • Innova0ve Services – Value-‐added CFO – CFO Advisory Services – FRF-‐SME – Assurance on XBRL Tagging – XBRL for research
- 75. S-‐Curves & Business Model Innova0on • ROA! • L>C • CC > EC
- 76. Three Rules for Success 1. BeTer before cheaper (it's best to compete on differen0ators other than price); 2. Revenue before cost (priori0ze increasing revenue over reducing costs); 3. There are no other rules.
- 77. CGMA – CIMA The global value-‐added financial professional
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- 79. Business Events Capture ReportInsight Communicate & Engage Action • Historical • Compliance • Technical • Future • Reliance • Leadership The Information Value Chain • Communica0ng the total picture with clarity and objec0vity, • Transla0ng complex informa0on into cri0cal knowledge, • An0cipa0ng and crea0ng opportuni0es, and • Designing pathways that transform vision into reality.
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- 82. Source: WTF What’s the Future of Business by Brian Solis Remember how we started?
- 83. #AdaptorDie #BendAdop0onCurve • Technology & Caveman • Serendipity • CC > EC • L > C • CPA as Ar0st
- 84. The collaboration curve is replacing the experience curve “The organizations that will become the household names of this century will be renowned for sustained, large-scale, efficient innovation. The key to that capability is neither company loyalty nor free- agent autonomy but, rather, a strong collaborative community.” HBR, July-August 2011 #CC>EC
- 85. Technology & the Caveman
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- 87. “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
- 89. #CC>EC # 1 Skillis Collaboration # 2 Skill is Communication according to 2012 IBM Global CEO Study
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- 94. Are you a Mr. T-‐ shaped Professional?
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- 96. #CPAInnovate MACPA Summit – May 17th, 2013 Mar0n’s West
- 97. #Ar0st&CPA • Lots of ways to mess up! • Heat is needed to shape the glass • Long setup 0me for quick finish • Try, learn and adjust -‐Tim McFadden
- 98. Innova0on adop0on = Social Networks “The degree to which an individual in a social network is connected to other individuals in the network (actor centrality) has been shown to have a major influence on that individual’s adop&on of business innova&ons.” – Research Report by Associa0on of American Medical Colleges
- 99. #MDSUMMIT13 Innova0on thru Collabora0on 13 Top Thought Leaders 25 Top technology & Sorware Vendors Terri Polley, Gail Perry, Teresa MacKintosh, Jennifer Warawa, Donny Shimamoto, Byron Patrick, Clarke Price, Erik Asgeirsson, Tom Hood, Ron Baker, Jody Padar, Joel Sinkin, Reggie Henry and more… Collabora0on Technologies
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- 101. Tom Hood, CPA.CITP CEO Maryland Associa1on of CPAs Business Learning Ins1tute (443) 632-‐2301 E-‐mail tom@macpa.org Web h`p://www.macpa.org Blog h`p://www.cpasuccess.com Blog h`p://www.bizlearningblog.com Follow me on: ü TwiTer: hTp://www.TwiTer.com/tomhood ü LinkedIn: hTp://www.linkedin.com/in/tomhood ü Facebook: hTp://www.facebook.com/thoodcpa ü Plaxo: hTp://tomhood.myplaxo.com ü Slideshare: hTp://www.slideshare.net/thoodcpa ü Youtube: hTp://www.youtube.com/thoodcpa ü Second Life avatar name: Rocky Maddaloni