2010 Business & Industry Conference - National & State Issues

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2010 Professional Issues Update for MACPA's Business & Industry Conference

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2010 Business & Industry Conference - National & State Issues

  1. Welcome
  2. MACPA 2010 Business & Industry Conference Professional Issues Update Presented by:   Tom Hood, CPA.CITP  CEO  Maryland Association of CPAs  Business Learning Institute  “A pioneer in using social media and Web 2.0 technologies in accounting, Hood (and his team at MACPA) has tapped his expertise to roll out one of the most extensive sets of resources in the country for helping CPAs handle the recession.” - Bill Carlino, Editor Accounting Today Magazine
  3. Why we are here? C P A
  4. What is the # 1 reason leaders (and their organizations) fail? 4
  5. What is different? 
  6. Being in business today feels like being in permanent whitewater 6
  7. You feel overwhelmed by the rapid and turbulent pace of change and uncertainties in business today
  8. You need new skills and new approaches to ride these waves of change Photo: Pratt’s surfing page
  9. Five Qualities of Extraordinary Leaders 1. Sight - Ability to see emerging patterns and shift perspective when necessary 2. Insight - Ability to learn faster than the rate of change in your industry 3. Create - Ability to think strategically and critically to gain insights that create new opportunities 4. Communicate - Ability to collaborate inside and outside your organization and to build and sustain social networks of people engaged in the work 5. Inspire – Ability to mobilize support and engage others to join you in ACTION
  10. Trends & Issues  • The economy  • The mega‐trends  – Globalization  – Workforce & Demographics  – Technology  • The Profession    Sight  Insight  Create  Communicate  Inspire! 
  11. The economy is still uncertain? Economists offer a wide range of predictions... Source: Banham, R. (2010 Mar 1). The shape of things to come. CFO Magazine. 
  12. The fact of the matter is, this is not a normal downturn, this is a …fundamental re-SET! - Steve Ballmer – CEO Microsoft
  13. Globalization
  14. 5 Forces of Globalization 1. Growth of consumers in emerging economies  2. Technologies that empower consumers &  communities  3. Increase in labor productivity in developed markets  4. Shift of economic activity between and within  regions  5. Increasingly global markets for labor & talent   
  15. It is not either global or local, it is AND… Glocal
  16. Workforce / Pipeline
  17. Bright spot?
  18. AICPA - Accounting Doctoral Scholars • $16.8 million contributed  • 70 firms & 41 state societies  • 39 universities  • 99 complete applications  • 60 selected for conference  • 30 selected as ADS Scholars   
  19. Bottom Line: How to keep your star talent • Engage your top performers • Coach tomorrow’s leaders • Manage your Millennials Think AMP • Autonomy • Mastery • Purpose
  20. Technology
  21. • Information Security • Training & Competency Management • Identity & Access • Privacy Management Management • Secure Data File Storage, • Improved Application & Transmission and Integration Exchange • Document, Forms, Content • Business Process & Knowledge Management Improvement / Work Flow • Electronic Data Retention • Mobile & Remote Strategy Computing • Cloud computing
  22. The SEC Mandate
  23. Technology & Web 2.0 By 2010, Millenials/Gen Y-ers will outnumber Baby Boomers.
  24. Here are five major benefits that The Economist  report says that social media has created:  1. Trusted online venues where real people can meet up using their real identities. 2. New ways for firms and organizations to reach their customers and those who influence them. 3. Reduced friction in labor markets by allowing employers and prospective employees to find each other and connect. 4. Faster information flow and communication inside companies and organizations. 5. A "free and immensely powerful set of communication and collaboration tools to everyone on Earth who has access to a broadband internet connection."
  25. CPA Profession
  26. The urge to merge? First wave – the public co consolidators Second wave – small practices unite Third wave – super-regionals, national, global
  27. Top 10 Issues Facing CPAs  1. Economic Outlook   2. Tax   3. Business Operations   4. Implementation and Execution  of Plans   5. New Business Development   6. Personal/Professional  Development   7. Management and Leadership   8. Financial Regulatory Reform   9. Access to Financing and Credit   10 New Accounting Standards,  IFRS  Source: CPA Trendlines for AICPA Feb, 2010
  28. PCPS/TSCPA MAP Survey 2009  Top Five Issues Facing Firms 21+  1. Client Retention  2. Marketing / Practice Growth  3. Tax Law Changes & Complexity  4. Keeping up with Regulations &  Standards  5. Retaining Qualified Staff /  Work/Life Balance  For larger firms add Partner Accountability & Succession Planning Mark Koziel, CPA AICPA PCPS http://pcps.aicpa.org/ 33
  29. You have their attention!
  30. Top Ten Issues for FEI  1. Economic Recovery and the U.S. Fiscal Outlook  2. Health‐Care Reform  3. Employee Benefits  4. Financial Regulatory Reform  5. Global Convergence of U.S. GAAP and IFRS  6. Financial Instruments  7. Financial Statement Regulation  8. Revenue Recognition  9. Business Taxation  10. *XBRL    35
  31. Business & Industry Responsibilities AICPA Core – 1/3 of B&I AICPA non-Core – 2/3 of B&I Responsibilities Responsibilities Financial accounting Strategic planning Financial reporting Sustainability Audit Budgeting Tax Financial operations management Risk management & internal 1/3 Core controls 2/3 Internal audit Additional Governance HR & benefits IT, legal, purchasing
  32. Top 10 Opportunities for CPAs 1. Valuation 6. Green / sustainability 2. Forensics and fraud 7. XBRL 3. Governmental – 8. Tax planning State/local/NFP 9. Enterprise Risk 4. International Management (IFRS and tax) 10. Renewable energy 5. Health care
  33. You will learn to become a navigator of change using BLI's I2A - Insight to Action strategic thinking system Sight  Insight  Create  Communicate  Inspire! 
  34. Sustainability www.gogreenplus.org
  35. Financial Literacy http://www.360financialliteracy.org/ http://www.feedthepig.org
  36. State CPA Statutes police power of the states to protect their citizens vs commerce clause
  37. Where do major changes come from? Us – MACPA & AICPA Them OR
  38. An example of “us” - The 120/150 Hour CPA Exam Bill (HB 1137) Changes the requirements to sit for the CPA exam to allow you to sit for the Exam upon completion of 120 hours (and the requirements of section 1 & 3) and get licensed upon completion of the final 30 credit hours (and the requirements in group 2)
  39. 44
  40. Recent Leg / Reg Changes you need to know!  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  MD Independent Contractor Legislation CPA Day in Annapolis January 19, 2011
  41. MACPA 2011 Agenda • Pass 120/150 legislation • Stop Sales Tax on Accounting Services • Exempt CPAs from Debt Counseling Bill • Stop Trial Lawyers attempts at Tort Liberalization – Comparative Fault
  42. Standards Changes • AS 5 - PCAOB • IFRS – SEC International gets legs (again) • Fair Value Accounting • XBRL – SEC mandatory • Codification Project – FASB • Clarity Project – ASB – Convergence with international • Reliability Project (comps & reviews) • DOL 403 (b) Plans • Internal Control – COSO • Fin 48 effective 2009 • Form 990 Changes • Fraud & Forensic SAS 99 • FASB – IASB Convergence Project
  43. SEC Roadmap released Early adopters Large can file using Accelerated IFRS Filers Small-caps 2010 2014 2016 2011 2015 Official SEC Accelerated decision filers – point second wave
  44. Top 5 Competencies needed to ride the waves of change • Communication & Leadership • Strategic & Critical Thinking • Focus on the Customer, Client, and Market • Interpretation of Converging Information • Technologically adept
  45. How to increase your odds of roaring out of the recession from HBR 1. Focus on operational efficiency (smart spending and targeted headcount reduction for efficiency versus across- the-board headcount reductions). 2. Investment in developing new markets (leveraging your product / service mix into expanded markets -- geographic, new segments or niches). 3. Investments in enlarging the asset base. (In professional services, that is training and development and strategic staffing for new opportunities.) I call this placing careful bets on the future. http://www.cpasuccess.com/2010/03/how-to-beat-the-odds-and-roar-out-of-the-recession.html
  46. Are you indispensable? Imagine an organization with an employee who can accurately see the truth, understand the situation, and understand the potential outcomes of various decisions. And now imagine that this person is also able to make something happen. This is our leader, our marketer, our linchpin!
  47. Tom Hood, CPA.CITP  CEO  Maryland Association of CPAs  Business Learning Institute  (443) 632‐2301  E‐mail tom@macpa.org  Web http://www.macpa.org  Blog http://www.cpasuccess.com   
  48. MACPA resources  • CPA Success, our daily blog  www.CPASuccess.com  •  CPA Spotlight, our weekly podcast  www.macpa.org/podcast  •  Other MACPA blogs:  • www.CPALegislativeInsider.com  • www.NewCPAs.com  • www.Bizlearningblog.com  • CPA Learning 2, a Web 2.0 playground by CPAs for CPAs  www.CPALearning2.com  53  
  49. Professional Issues Update Spring, 2010    Tom Hood, CPA.CITP  CEO & Executive Director  Maryland Association of CPAs  http://www.MACPA.org  tom@macpa.org    • Follow me on:   Twitter: http://www.Twitter.com/tomhood   LinkedIn: http://www.linkedin.com/in/tomhood   Facebook: http://www.facebook.com/thoodcpa   Plaxo: http://tomhood.myplaxo.com   Slideshare: http://www.slideshare.net/thoodcpa   Youtube: http://www.youtube.com/thoodcpa   Second Life avatar name: Rocky Maddaloni 

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