State of Accounting for Linked-in Influencer Series #MyIndustry Big Waves of Change, Oceans of Opportunity These big waves of change are the result of a “perfect storm” of sorts -- the convergence of three “hard trends” of exponential technological innovation, the demographic shift as baby boomers retire, and globalization. Key challenges facing accounting and finance professionals are automation and digital transformation, succession and talent shortages, a “brain drain” as experienced people retire, business model changes, and the increasingly VUCA world (that’s volatility, uncertainty, complexity and ambiguity) in which we find ourselves. Several recent studies (from WEF, Oxford, McKinsey and MIT) report that accounting, auditing and tax are among the occupations most at risk for complete automation within the next 20 years. As a result, the accounting and finance profession is rapidly approaching what Andy Grove, retired CEO of Intel Corporation, described as a “strategic inflection point,” -- “a time in the life of a business when its fundamentals are about to change. That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end.” This is where there are two major pathways: doing business as usual, or embracing and adapting to the new. At the moment these are fairly close together, but they will soon diverge into a growing gap between growth and success, or entropy and decline. “You can’t stop the waves, but you can learn how to surf.” - Jon Kabat-Zinn To take advantage of these oceans of opportunity, accounting and finance professionals will need to learn how to ride these big waves or risk being crushed by their frequency and force. The critical thing to know is that what got you here, won’t get you there. Business as usual simply won’t work. Here are six ways to learn how to ride these big waves of change now and in the future: 1. Embrace digital: Learn how to elevate and accelerate your job using technology and to race with the machines, not against them. 2. Anticipate: Learn the critical competency of anticipation. Only those who constantly try to anticipate change will survive when change happens. 3. Collaborate: The collaboration curve is quickly replacing the experience curve. Who you know is replacing what you know. 4. Learning is the next competitive advantage: As Fast Company editor Robert Safian wrote, “the most important skill is the ability to acquire new skills.” 5. Protect the core: When everything is changing, it is important to know what should not change. Purpose and values for individuals and organizations should serve as that anchor or grounding. 6. Make time for the future. Your time and those of your people will be your number one challenge, and nothing will change if you are overwhelmed and too busy. The hard trends are forming these big waves of disruption and change. Surf's Up - Are you ready?

1. 2016 The State of My Industry: Accounting
Tom Hood, CPA, CITP, CGMA fluencer
#MyIndustry
@tomhood

2. “We stand on the brink of a
technological revolution that will
fundamentally alter the way we live,
work, and relate to one another. In its
scale, scope, and complexity, the
transformation will be unlike anything
humankind has experienced before.”

3. Big Waves of Change

4. Borrowed from the US Army War College,VUCA was coined byThe Institute for the Future to
describe the rapidly changing and complex business environment since the Great Recession of
2008.

5. Technology is #1 HardTrend
Source: Miovision July 17, 2013 “The Internet ofThings andTransportation”

6. From the World Economic Forum in Davos, 2016

7. Race Against the Machines?
Source: Frey & Osborne –The Future of Employment – Oxford University

9. The Fourth Industrial Revolution

10. Source: CPA.COM Insight into the CPA of
the Future Study 2014
92% of CPAs are NOT Future Ready
Future Ready is the capacity to be
aware, predictive, and adaptive of
emerging trends, innovations and
changes in business, population, and
the social environment.

11. Are we at a Strategic Inflection Point?

12. A 3-D printed carbon fiber house and SUV that share energy
1. the construction and building industry, including suppliers, supply chain, and
unskilled labor;
2. the automotive and transportation industry, including components makers and
the classic assembly line; and,
3. the electric-utilities industry.

14. Cognitive Computing has three unique capabilities: 1) natural language
processing, 2) hypothesis generation and evaluation, and 3) dynamic learning.

15. “You can’t stop the waves, but
you can learn how to surf.”
– Jon Kabat Zinn
Oceans of Opportunity

16. 91%
Of firms expect
to continue
record hiring
levels
11%
Projected
accounting job
growth between
2014 and 2024
Demand for Accounting is Strong
And according to the DOL BLS,
faster than the average for all
occupations

17. References: US Department of Labor, Manpower Group Talent Shortage 2015
38%
of
employers
interna2onally
report
talent
shortages
in
2015
2009:
30%
Employment
of
accountants
and
auditors
is
projected
to
grow
11
percent
from
2014
to
2024,
faster
than
the
average
for
all
occupa2ons
–
US
Dept
of
Labor
2015
Accoun2ng
and
finance
staff
#1
in
demand
#8
in
talent
shortage
Demand for Accounting is Strong

18. • 2 of Top 10 Best Jobs (US News & World Report)
• Top 20 Happiest Professions (Huff Post)
• Top 10 in Demand Jobs/Hardest Jobs to Fill –
(Manpower Group)
And Career is Attractive

19. # 1
Most Profitable
industry
according to
Sageworks
# 1
In small/mid-size
business growth
rates averaging
12% in 2016
Demand for Accounting is Strong

20. The Rise of the #DigitalCPA
Shift fromTangibles to Intangibles

21. Source:What defines the 21st Century Corporation Geoff Colvin - Fortune

22. Cloud computing trends
Source: Sage North
America & AICPA PCPS
MAP Survey
of small businesses are
demanding cloud-based
computing
61%
<10% of CPAs are using
cloud-based applications to
collaborate and work with
clients.

23. Advisory Services Lead Growth

24. “The real way it was in finance—in the world I grew
up in—is we spent all our time looking backwards…
[Modern Finance and Accounting] is now it’s about
looking to the future.” – Safra Catz, CEO of Oracle
(formerly CFO)

25. CFO à COO à CEO
There is a growing trend in CFOs moving to new roles as COOs and even
CEOs as they lead business transformation.

26. Six Steps to Ride the Waves
1. Embrace Digital.
2. Anticipate.
3. Collaborate.
4. Learning as the next
competitive
advantage.
5. Protect the Core
(Purpose &Values).
6. Make time for the
future.

27. The leaders are the ones who take the first steps
“Tom
Hood
and
his
colleagues
at
the
Maryland
Associa2on
of
CPAs
never
fail
to
amaze
and
impress.
Some2mes
you
can
find
them
orchestra2ng
a
flash
mob
of
accountants
or
puWng
down
stakes
in
the
virtual
world
of
Second
Life,
but
most
recently
the
associa2on
has
goYen
serious
about
XBRL
and
has
undertaken
a
project
to
demonstrate
XBRL's
scope
and
versa2lity
by
tagging
its
own
financial
statements
and
showing
how
non-­‐profits
can,
well,
profit
from
the
experience.
“What
message
can
you
learn
from
the
MACPA's
XBRL
project?
First,
you
can
start
examining
your
own
client
base
to
see
who
can
benefit
from
the
experiences
of
MACPA.
But
the
bigger
message
is,
stop
wai2ng
for
other
people
to
tell
you
what
works
and
what
doesn't.
Be
proac2ve
and
experiment.
That's
what
new
technology
is
all
about.
Whether
it's
cloud
technology,
IFRS
and
XBRL,
social
media,
or
choreographing
a
dance
–
the
leaders
are
the
ones
who
take
the
first
steps.”
-­‐-­‐
Gail
Perry,
editor,
Accoun2ngWEB
Now
with
CPA
Prac2ce
Advisor

28. The leaders are the ones who take the first steps
"If
there
is
a
conversa3on
about
the
future
of
the
profession,
you're
bound
to
hear
Hood
men3oned
as
one
of
the
people
leading
the
way.
From
his
Innova3on
Summit
to
his
many
speaking
engagements,
from
his
prolific
tweets
to
his
range
of
alliances
with
vendors,
other
organiza3ons,
and
thought
leaders
at
all
levels,
Hood
is
doing
as
much
as
anyone
-­‐
and
more
than
most
-­‐
to
lead
public
accoun3ng
forward.”
–Dan
Hood,
Editor
Accoun'ng
Today,
2013
Tom
and
Bill
named
first
and
second
most
influen2al
in
the
world
by
Savvy
SME.
CPA
Success
blog
named
top
10
in
na2on
for
accoun2ng.
Tom
named
second
most
influen2al
in
accoun2ng
by
Accoun2ng
Today.
Tom
one
of
inaugural
LinkedIn
Influencers.

29. If there is a conversation about the future
of the profession, you're bound to hear
Hood's name mentioned as one of the
people leading the way.
– Accounting Today
Tom Hood, CPA, CITP, CGMA
CPA Practice Adviser Accounting Hall of Fame
Named the Second Most Influential in Accounting
by Accounting Today Magazine 2013 - 2015
Top 150 Influencer by Linked-In
Top 25 Influencers in Learning & HR - HR
Examiner
Top 25 Public Accounting Thought Leaders - CPA
Practice Adviser
Co-founder of the Business Learning Institute
CEO
Maryland Association of CPAs
(MACPA) www.macpa.org
Business Learning Institute
(BLI) www.blionline.org
http://www.linkedin.com/in/tomhood/