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
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
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.
13.
14. The fact of the matter is, this is not a normal
downturn, this is a …fundamental re-SET!
- Steve Ballmer – CEO Microsoft
17. 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
18. It is not either global or local, it is AND…
Glocal
21. 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
22.
23.
24. Bottom Line: How to keep your star talent
• Engage your top performers
• Coach tomorrow’s leaders
• Manage your Millennials
Think AMP
• Autonomy
• Mastery
• Purpose
28. Technology & Web 2.0
By 2010, Millenials/Gen Y-ers will outnumber
Baby Boomers.
29. 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."
31. The urge to merge?
First wave – the public co consolidators
Second wave – small practices unite
Third wave – super-regionals, national, global
32. 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
33. 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/
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37. 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
38. You will learn to
become a navigator
of change using
BLI's I2A - Insight to
Action strategic
thinking system
Sight Insight Create Communicate Inspire!
42. Where do major changes come from?
Us – MACPA & AICPA Them
OR
43. 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)
45. 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
46. 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
47. 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
48. 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
49. 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
50. 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
51. 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!
52. 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
53. 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
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54. 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
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