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.
1. How
the
Dynamic
of
the
CPA/
Client
Rela6onship
Changes
in
the
Cloud
Firm
Panel
Discussion
Tom Hood, CPA.CITP, CGMA
CEO 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
CEO
MACPA
• 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 Accounting
Department • 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 BMRG
Jennifer L. Katrulya, CPA Clients
Founder & 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
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