AICPA PSTECH - CPA Relationships & Cloud Panel

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How the Dynamic of the CPA Client Relationship Changes in the Cloud - A panel moderated by Tom Hood with Michael Hsu & Jennifer Katrulya. Tom asks how these two progressive firms are changing how CPA practices are working. The new model is mobile, social, cloud, collaborative, and value-added.

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AICPA PSTECH - CPA Relationships & Cloud Panel

  1. How  the  Dynamic  of  the  CPA/ Client  Rela6onship  Changes  in   the  Cloud       Firm  Panel  Discussion   Tom Hood, CPA.CITP, CGMACEO at Maryland Association of CPAs AICPA Practitioners/Tech Conference Wednesday, June 13, 8:00 AM - 9:15 AM CPA2Biz, Inc. - Proprietary and Confidential Information
  2. Moderator:  Tom  Hood   •  Named  to  the  “Elite  13”  &  Top  100   Most  Influen;al  by  Accoun;ng   Today   •  Top  25  Influencers  in  Learning  &  HR  Tom Hood, CPA, CITP, by  HR  Examiner  CGMA CEOMACPA •  Top  25  Public  Accoun;ng  Thought   Leaders  by  CPA  Prac;ce  Adviser   •  Currently  working  on    Performance  Business Learning Institute(BLI) Management/XBRL  &  Learning   Management  with  AICPA/C2B   CPA2Biz, Inc. - Proprietary and Confidential Information
  3. CPA Panelists •  Michael  started  DeepSky  in  2009  with  the  mission  of   helping  entrepreneurs  build  beTer  companies  through   ac;onable  business  insights.  DeepSky  was  designed  in   a  similar  structure  to  that  of  an  in-­‐house  accoun;ng   department  vs.  a  tradi;onal  tax  or  A&A  firm     •  In  three  years’  ;me,  DeepSky  has  grown  from  a   fledgling  startup  to  a  leader  in  the  outsourced   accoun;ng  space  with  customers  from  all  around  the   country     •  Michael  has  been  featured  and  quoted  in  Accoun1ng  Michael Hsu, CPA.CITP, MSA Today,  CPA  Prac1ce  Advisor,  and  various  business  Founder & CEO blogs  DeepSky – Entrepreneur’s AccountingDepartment •  His  firm  serves  the  Entrepreneurial  service  space  -­‐                 $1-­‐10M  –  who  are  open  to  cloud  technology     •  While  he’s  based  in  CA,  his  biggest  client  resides  in   Washington  DC  –  who  he’s  never  met     CPA2Biz, Inc. - Proprietary and Confidential Information    
  4. CPA  Panelists   •  Founder and CEO of BMRG, LLC •  Managing Partner – BMRG Group Advisory Program for CPAs •  AICPA/CPA2Biz Facilitator for the Trusted Business Advisor Cloud-Based Client Accounting   Practice Development Training Program •  BMRG supports the following products and services: –  Outsourced Accounting and CFO Services –  Payroll Processing and Compliance –  Business Coaching and Advisory Services for BMRGJennifer L. Katrulya, CPA ClientsFounder & CEO –  Integrated Application Sales and Support (Bill.com,BMRG, LLC Merchant Services, Payroll, and select 3rd party applications and services) –  CPA practice and ProAdvisor advisory/coaching services –  Software application training and general business classes at regional colleges and professional associations CPA2Biz, Inc. - Proprietary and Confidential Information
  5. CPA  Horizons  2025  •  1.  CPAs  must  stay  current  with,   embrace  and  exploit  technology  for   their  benefit  for  increased  efficiency   and  expansion  of  services.  •  2.  The  profession  must  find  solu;ons   to  offer  investors  and  stakeholders   up-­‐to-­‐date,  real-­‐;me  financial   informa;on  and  to  increase   transparency.  •  3.  CPAs  must  embrace  mobile   technologies  and  social  media  to   modernize  and  enhance  interac;on   and  collabora;on  with  clients  and   colleagues.   CPA2Biz, Inc. - Proprietary and Confidential Information
  6. BMRG  -­‐  Then  and  Now   BMRG  Clients  and  Staff  in  2004:       BMRG  Clients  and  Staff  Today:  •  Clients with revenues < $1 million •  Clients with revenues > $1 million and most $2-$20 million per year, some higher•  Generally fewer than 10 employees •  Many with more than 20 employees,•  Within 75 miles of our Connecticut office several with more than 50 employees•  We worked on-site with clients within 20 •  Clients in most of the 50 states and 13 miles of our office (CFO Services Only) other countries (all U.S. based) and remotely with all others •  All services provided remotely (even for local clients)•  Worked with nearly any industry •  Specialized industry verticals•  Billing rates ranged from $45-$175/hr •  Value-based pricing and bundled service•  Staff worked full-time from our NY and CT options currently ranging from $1,500/mo. offices to $16,500/mo., average $4,900 per month, realized rates of $125-$800/hr. •  Staff in multiple states and in-office staff earn telecommuting privileges CPA2Biz, Inc. - Proprietary and Confidential Information
  7. Cloud  Compu6ng:  Disrup6ve  Innova6on  •  Small  Business  Accoun;ng  and  Client  Accoun;ng     on  the  verge  of  disrup;on  •  Cloud  compu;ng  is  drama;cally  changing  how     accoun;ng  sodware  is  developed  and  delivered    •  New  paradigm  emerging  for  small  business  &  a  new   market  is  being  created     Incredible Opportunity For Firms CPA2Biz, Inc. - Proprietary and Confidential Information
  8. Before:  Transac;onal   Today:  Advisory  •  Low margin transaction •  Improve client financial performance processing with proactive consulting•  Means to an end; • Save time and reduce cost by a Tax Return standardizing and leveraging automation and repeatable processes•  Pressure to keep fees low • Increase real-time collaboration with•  Non-strategic clients by accessing information in the Cloud • Increase margins by providing higher value with increased productivity CPA2Biz, Inc. - Proprietary and Confidential Information
  9. Move  Up  the  Client  Value  Pyramid  More  CPAs  are  becoming  outsourced  CFOs   for  their  small  business  clients   Client  Value  Pyramid   Virtual  CFO   Budget,  Business  Planning,  Business  Modeling,  etc.   Controllership  Services   Monthly  Close,  Fin  Statements,  Cash  Flow  Analysis   Transac6onal  Services   Tax,  Write  up,  Bookkeeping,  A/P,  Payroll,  etc.   CPA2Biz, Inc. - Proprietary and Confidential Information
  10. Key  Benefits  of  Accoun6ng  Firm  Usage  of  Cloud  Applica6ons   CPA2Biz  2012  Technology  Survey  •  Being  able  to  work  anywhere,  any6me:  88%                5%  •  Disaster  backup  &  recovery  :  85%  •  Improved  client  service  &  collabora6on:  84%  •  Being  able  to  use  the  latest  applica6ons:  82%              4%  •  Being  able  to  serve  non-­‐local  clients:  80%    •  Expand  services,  create  new  revenue  sources:  79%                11%   CPA2Biz, Inc. - Proprietary and Confidential Information
  11. Growth  of  Virtual  Office   CPA2Biz  2012  Technology  Survey  Regarding  a  physical  office:  •  In  2011  4%  of  firms  were  “virtual”    •  By  2012  those  numbers  have  grown  to  8%   CPA2Biz, Inc. - Proprietary and Confidential Information
  12. Ge^ng  Ver6cal  through  the  Cloud   Most  Popular  Client  Ver6cals     Business   Intelligence   for  Outsourced  Accoun6ng  Services         Repor6ng     •   Professional  Services  –  90%   Client   •   Construc6on  –  76%  Accoun6ng   •   Retail  –  75%    Capabili6es   Real-­‐Time  Client   •   Not-­‐for-­‐Profit  –  73%   Collabora6on   driven     •   Manufacturing  –  65%   through   •   Wholesale  Distribu;on  –  61%   •   Technology  Companies  –  59%   cloud   •   Transporta;on  –  48%  compu6ng   •   Hospitality  –  45%   Standardized   Workflows     •   Franchises  –  40%     •   Government  –  29%   CPA2Biz, Inc. - Proprietary and Confidential Information
  13. Game  Changing  Transforma6on   TODAY     FUTURE     Moving  From   To  Systems    Systems  of  Record     of  Engagement     •  Consolidate   •  Collabora;ve   •  Organize     •  Intelligent   •  Report   •  Knowledge  Based   (The  Digital  CPA  )   Geoffrey  Moore  Slide  –  Adopted  for  CPA  Marketplace   CPA2Biz, Inc. - Proprietary and Confidential Information
  14. Importance  of  Digital  Brand  in  Client  Rela;onship     Historical   Today •  Meeting in an office •  Online Collaboration •  Phone •  Email •  Classified •  Social Networking •  Yellow Pages •  Search CPA2Biz, Inc. - Proprietary and Confidential Information
  15. What’s  Your  Online  Digital  Brand?  Consumer  Email  Account   Professional  Email   1.  Firm  Branded  Domain:   smithcpa@aol.com   -­‐  www.smithcpa.com     -­‐  Branded  web  site  and  email     2.  CPA.com  Domain   -­‐  Your.Name@CPA.com         CPA2Biz, Inc. - Proprietary and Confidential Information
  16. Accoun6ng  Firm  Use  of  Social  Media     CPA2Biz  2012  Technology  Survey  80      70     Firm Usage of Blogs and Twitter  60     each up 60% year-over-year  50      40     2011    30     2012    20      10      -­‐         LinkedIn   FaceBook   TwiTer   Blog   •  34% of CPAs surveyed are using tablets (iPads) for business purposes, and another 12% plan to soon •  According to recent Boomer study, this is as high as 57% for mid sized firms CPA2Biz, Inc. - Proprietary and Confidential Information
  17. How  is  your  firm  changing?  You  can  leap  from  old  to  new  technologies  with  smart   •  Firm  Branded  Web  Site  &  Email    business  strategies  and   •  Google  Adver;sing  Campaign  to  minimal  investment   drive  new  business  to  firm   •  Launch  a  Mobile  App   •  Be  ac;ve  on  LinkedIn       AOL/Yahoo                                        Web  site  with   •  Start  Video  Blog  and  post  to   email   brochure-­‐type   YouTube     content   Old   •  Create  a  TwiTer  profile  and   Technology   Facebook  Company  page     Use  only     Minimal  ac;ve   tradi;onal   firm  marke;ng   channels  for  staff   and  networking     recruitment       CPA2Biz, Inc. - Proprietary and Confidential Information
  18. Accounting Firm-Branded Mobile Apps Moss Adams KPMG Eide Bailly THE APP IS THE WEB SITE OF THE 90’s AND IS COMING TO SMALL FIRMS CPA2Biz, Inc. - Proprietary and Confidential Information
  19. Mobile-Friendly Practice Management ToolsSalesforce.com CCH Mobile CPA2Biz, Inc. - Proprietary and Confidential Information
  20. Accounting Software in Your Mobile Device Intacct Bill.com CPA2Biz, Inc. - Proprietary and Confidential Information
  21. Mobile  Bill  Payment!  •  Access multiple client accounts"•  View/Approve bills"•  View approver notes"•  Make secure payments" –  Multiple bank accounts" –  Adjustable payment timing" CPA2Biz, Inc. - Proprietary and Confidential Information
  22. CPA2Biz  Survey  Results  –  April  2012  Accoun;ng  Firm  Usage  of  Web-­‐Based  Applica;ons   TOP  CONCERNS  (SIGNIFICANTLY  OR  SOMEWHAT  CONCERNED)   • Security:  73%  concerned  (          8%  from  2011)   • Confiden6ality:  72%  concerned  (        8%  from  2011)   • Privacy:  67%  concerned  (        11%  from  2011)   • Availability:  64%  concerned  (          4%  from  2011)     CPA2Biz, Inc. - Proprietary and Confidential Information  
  23. What  alleviates  CPAs’  concerns?   CPA2Biz  2012  Technology  Survey  100%   90%   80%   70%   60%   50%   Not  Important   Somewhat   40%   Very  Important   30%   20%   10%   0%   Company   SOC  2     Other  firms   Strong  SLAs  in   Training  on   reputa;on   usage   place   cloud  service   CPA2Biz, Inc. - Proprietary and Confidential Information
  24. Digital  Darwinism?   CPA2Biz, Inc. - Proprietary and Confidential Information
  25. You  have  3  years  at  most!   hTp://cpa.tc/engagement  •  Cloud  •  Mobile  •  Social  •  Value-­‐added  •  Collabora;ve  hTp://cpa.tc/socialbiz   CPA2Biz, Inc. - Proprietary and Confidential Information
  26. The  Digital  CPA  Cloud  User  Conference     Firm   Technology   Cloud  Compu;ng,  Mobile,     Social  Media,  Change  Management   Trends     Prac6ce   Building  a  Virtual  CFO  Prac;ce…Pricing  Development   Services,  Engagement  LeTers,  Staffing   Models,  Marke;ng  Best  Prac;ces   Tools   Oct  28  -­‐  Oct  30,  2012     Accoun;ng  Sodware,  Bill   Hands-­‐On   Management  and  Cash  Flow,  Tax,   Gaylord  Na;onal  Hotel    User  Training   Accoun;ng  &  Audi;ng  Workflow   and  Conven;on  Center     Automa;on   Gaylord  Na6onal,  Washington,  DC     Recommended  CPE  Credit:  19     CPA2Biz, Inc. - Proprietary and Confidential Information
  27. Want  more?   hTp://cpa.tc/2012Summit/  hTp://cpa.tc/BeachRetreat/   CPA2Biz, Inc. - Proprietary and Confidential Information
  28. Tom  Hood,  CPA.CITP   CEO   Maryland  Associa6on  of  CPAs   Business  Learning  Ins6tute   (443)  632-­‐2301   E-­‐mail  tom@macpa.org   Web  hnp://www.macpa.org  Blog  hnp://www.cpasuccess.com    

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