MACPA 2013 Spring Professional Issues Update

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MACPA's semi-annual PIU series of Free four hour Professional Issues Updates for members. The Spring 2013 edition revolves around innovation and collaboration. This version covers the latest update from the Maryland General Assembly, Federal legislations, Accounting Standards, Cloud, generations in the workplace, and innovation.

These update hit over 20% of our membership annually reaching 2,000+ CPAs in all segments of our Profession - Public Accounting, CFOs, Controllers, GNFP, and more...

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MACPA 2013 Spring Professional Issues Update

  1. Tom Hood, CPA, CITP, CGMA CEO MACPA & the Business LearningInstitute MACPA Town Hall & ProfessionalIssues Update for MEMBERS
  2. http://macpa.conferences.io Ask and answerquestions throughoutthe day here… Conferences.io was used to engageour members and encourage openQ&A and feedback with thisexciting new technology we willbegin incorporating into strategicplanning and CPE courses forengagement and collaboration.
  3. Respond to a Poll Ask a Question Vote up a Question http://macpa.conferences.io
  4. Segments  of  our  members  
  5. Genera0ons  
  6. Tech  Tools  
  7. Source:  WTF  What’s  the  Future  of  Business  by  Brian  Solis  What  I  have  been  thinking  about  
  8. And  this  
  9. • Change• Complexity• Compliance• Convergence• CompetitionMANAGING THE “C” CHANGE
  10. What  happens  when  CPAs  are  overwhelmed?  
  11. When  we  need  to  be  doing  this?  
  12. 12Our  Sponsors  MACPA  Innova1on  Summit  
  13. www.SlideShare.net/thoodcpa  #PIU13  #MACPA  @tomhood  @MACPA  Download  today’s  slides  at  …  
  14. Message  from  our  Chair  
  15. Be  like  Mike(y)  
  16. Insights  to  Ac0on    “One  without  the  other  is  either  useless  or  destruc0ve”  
  17. http://www.burrus.com Inattentional blindness
  18. The  new  “Big  Four”  • Standards  &  Leg/Reg  • Technology  • Genera0ons  in  workplace  • Innova0on  
  19. The  US  Economy  Schumpeters  Curve  of  Crea0ve  Destruc0on  
  20. Legisla0on  &  Regula0on  hTp://cpa.tc/1ut  • Federal  –  Fiscal  Cliff  • State  •  Budget  Deficit  •  Sales  Tax  on  Services  •  Tort  Reform  
  21. First  the  facts  about  Fiscal  Cliff,  Sequester  and  Fed  Budget  
  22. #CPAsSavetheWorld  
  23. Accoun&ng  bodies  hail  G20  emphasis  on  public  sector  repor&ng    DATA  Act  &  Financial  Industry  Transparency  Act  using  XBRL  
  24. Whats at Stake?The US Government’s FinancialStatements and the CountrysFiscal Health
  25. Revenue  =  $2.4  trillion   Expenses  =  exceeded  revenue  by  $1.3  trillion  2011 Financial Statements
  26. 2011 Financial StatementsAssets=  $2.7  trillion  Liabili1es=  $17.5  trillion  Accumulated  deficit=  $14.8  trillion  
  27. U.S. financial statements differ fromother organizationsMost financial statements show obligations orliabilities on balance sheetUS government’s financial statements do not includeSocial Security and Medicare•  Footnote disclosures•  Not reflected as liabilities
  28. Reality of future obligationsThese future obligations equal:$46.3 trillion in additional deficitPlus $14.8 trillion cumulative deficitTotal deficit: $61 trillion deficit$61 trillion is the equivalent of:Every household in America owing the full costof two new homes and not getting to live in them
  29. State of Maryland Budget vs Financials Budget surplus$363 Million vsFinancial deficit $1.2 Billion 2
  30. 2011 Financial Statements-5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2009 2010 2011 Revenue Expenses Deficit Revenue =$33.5 billion Expensesexceeded revenueby $1.2 billion Note:The FinancialStatement Deficit isdown from the2009 highpoint of$2.9 billion 6
  31. 7
  32. www.macpa.orgNet Assetsdecreased by$7.2 Billion inpast 5 years 9
  33. www.macpa.orgMaryland’s unfundedPension obligations of$28.5 Billion Source: 2011 CAFR Footnotes 15 & 16 10
  34. www.macpa.org 11
  35. www.macpa.orgMACPA State BudgetTask Force 15
  36. The  Future  is  Bright  Students  from  U  of  B  
  37. Where  were  you  on  January  16th?  2014  CPA  day  –  January  15,  2014  
  38. Sales  Taxes  on  Services?  
  39. #MagnumCPA?  
  40. #TaxSimplify  
  41. 2013  Sine  Die  
  42. It’s  really  a  numbers  game  2,500  188  90  3  
  43. #BadBills  
  44. State  Board  of  Accountancy    1.  Projec0on  of  status  on  CPA  Board  fund.    How  it  will  be  monitored  to  determine  when  a  fee  increase  is  needed?  The  fund  must  cover  IT  improvement  costs.  2.  Review  of  peer  review  process  for  monitoring  fail  and  2nd  pass  with  deficiency  reports.  3.  Review  of  the  exam  applica0on  process.    Determine  if  processing  should  be  con0nued  in-­‐house  or  contracted  out  to  a  third  party.  
  45. #GoodBills  •  Separate  funding  for  the  State  Board  •  Experience  requirement  to  make  Maryland  CPAs  compa0ble  with  UAA  (Uniform  Accountancy  Act)  •  Ethics  requirement  for  CPE  •  Mandatory  peer  review  and  prac0ce  quality  •  Exemp0on  for  CPAs  from  Maryland  (and  federal)  tax  preparer  regula0on    •  Prac0ce  mobility  •  AG  opinion  allowing  CPAs  to  use  Social  Security  numbers  for  tax  services  •  120/150  CPA  exam  legisla0on  •  Restricted  audits,  reviews,  and  compila0ons  to  CPAs  and  added  safe  harbor  for  compila0ons  •  State  Board  of  Public  Accountancy  reauthoriza0on  
  46. #BADBills  •  Sales  tax  on  accoun0ng  and  tax  services  (defeated  several  0mes)  •  Maryland  corporate  accountability  (SOX  and  404  for  private  companies  and  non-­‐profits)  •  Debt  counseling  registra0on  by  CPAs  •  Maryland  Tax  Prepapers  •  Compara0ve  fault  (several  0mes)  •  Elimina0on  of  audit  requirements  for  Maryland  cemeteries  
  47. Advocacy  –  If  not  you,  who?  
  48. Standards  •  Interna0onal  –  IASB  &  IFRS  •  FASB  &  PCC  •  AICPA  &  FRF  –  SME  •  ASB  –  Clarity  (12/15)  •  GASB  Pension  •  PEEC  hTp://cpa.tc/1us  
  49. FAF,  XBRL  and  You  
  50. GASB  Whitepaper  
  51. Form  990  Data  Transparency  •  NFP  tax  returns  are  public  informa0on  •  And…they’re  not  easily  searchable  (PDFs)  •  30%  of  Form  990s  are  filed  electronically…  •  Then  get  printed  and  scanned  and  loaded  on  disks.  •  President  Obama’s  2014  budget  calls  for  electronic  filing  of  Form  990,  and…  •  Requires  IRS  to  publish  data  in  a  machine  readable  format  (XBRL?)  
  52. FASB  Industry  Taxonomy  Project  •  Develop  industry  specific  taxonomies  •  BeTer  suited  for  each  industry  •  Industries  par0cipa0ng  include:  •  Insurance  •  Banking  •  Brokers  and  Dealers  •  Real  Estate  •  NFPs  
  53. FASB  NFP  Taxonomy  Project  -­‐    Par0cipa0ng  Organiza0ons  •  AICPA  •  CFA  Ins0tute  •  NACUBO  •  Thurgood  Marshall  College  Fund  •  FAF  •  MACPA  
  54. The  process…  •  Iden0fy  elements  and  concepts  unique  to  non-­‐profit  accoun0ng  that  don’t  currently  exist  in  the  US  GAAP  Taxonomy.  Such  as:  •  Split-­‐interest  agreements  •  Pledges  receivable  •  Temporarily  restricted  net  assets  
  55. #CPATechnology  
  56. #CloudorBust  
  57. Me  and  Geoffrey  Moore  
  58. #Connected  
  59. From:  Systems  of  Record  To:  Systems  of  Engagement  
  60. #4Genera0ons  
  61. GEN SYMP
  62. "The  speed  of  change  makes  you  uncomfortable  on  a  regular  basis,"  he  says.  "Thats  so  difficult  for  people  who  are  paying  mortgages,  buying  cars,  trying  to  give  their  kids  the  things  they  had,  to  get  them  through  school.  You  want  to  feel  confident  in  the  last  15  years  of  your  career  that  arer  25  or  30  years  of  effort,  its  just  going  to  work,"  he  says.  "But  it  isnt  so.  And  I  dont  think  you  ever  get  over  the  fear  of  not  knowing.”                        –  Doug  Gould  Ad  Exec  
  63. Why  should  you  care  about  Social  Media?  “In-­‐forming  is  the  individual  persons  analog  to  open-­‐sourcing,  outsourcing,  insourcing,  supply-­‐chaining,  and  offshoring.  Informing  is  the  ability  to  build  and  supply  your  own  personal  supply  chain—a  supply  chain  of  informa1on,  knowledge,  and  entertainment.  In-­‐forming  is  about  self-­‐collabora1on—becoming  your  own  self-­‐directed  and  self-­‐empowered  researcher,  editor,  and  selector  of  entertainment.                –  Thomas  Friedman  
  64. #SocialCPA  
  65. #SocialMediaforCPAs  
  66. 34MACPA’s Social Media Ma145,714 views80,568 views450 members4,966 followers2,049 connections571 connectionsTop 50 Business Blogs - 2011Top AccountingBlogs – 2009, 2010, 2011,2012
  67. #SocialAccoun0ng  
  68. The  conversa0on  con0nues…  hTp://cpa.tc/214    
  69. Tipping  the  adop0on  curve?  
  70. #Accoun0ngInnova0on  
  71. Innova0on  for  CPAs  •  Big  Four  Trends  –  Social  –  Mobile  –  Cloud  –  Big  Data  (XBRL)  •  Innova0ve  Services  –  Value-­‐added  CFO  –  CFO  Advisory  Services  –  FRF-­‐SME  –  Assurance  on  XBRL  Tagging  –  XBRL  for  research    
  72. S-­‐Curves  &  Business  Model  Innova0on  •  ROA!  •  L>C  •  CC  >  EC  
  73. Three  Rules  for  Success  1.  BeTer  before  cheaper  (its  best  to  compete  on  differen0ators  other  than  price);  2.  Revenue  before  cost  (priori0ze  increasing  revenue  over  reducing  costs);  3.  There  are  no  other  rules.  
  74. CGMA  –  CIMA  The  global  value-­‐added  financial  professional    
  75. #CPAVision  
  76. BusinessEvents Capture Report InsightCommunicate &Engage Action•  Historical•  Compliance•  Technical•  Future•  Reliance•  LeadershipThe Information Value Chain•  Communica0ng  the  total  picture  with  clarity  and  objec0vity,  •  Transla0ng  complex  informa0on  into  cri0cal  knowledge,  •  An0cipa0ng  and  crea0ng  opportuni0es,  and  •  Designing  pathways  that  transform  vision  into  reality.  
  77. EBR  
  78. Source:  WTF  What’s  the  Future  of  Business  by  Brian  Solis  Remember  how  we  started?  
  79. #AdaptorDie  #BendAdop0onCurve  • Technology  &  Caveman  • Serendipity  • CC  >  EC  • L  >  C  • CPA  as  Ar0st  
  80. The  collaboration curve  is  replacing  the  experience  curve  “The organizations that willbecome the household names ofthis century will be renowned forsustained, large-scale, efficientinnovation.The key to that capability isneither company loyalty nor free-agent autonomy but, rather, astrong collaborative community.”HBR, July-August 2011#CC>EC  
  81. Technology  &  the  Caveman  
  82. #MACPAGROUPS  
  83. “In  a  period  of  rapid  change  and  increasing  complexity,  the  winners  are  going  to  be  the  people  who  can  LEARN  faster  than  the  rate  of  CHANGE  and  faster  than  their  COMPETITION.”  -­‐  Tom  Hood,  CPA.CITP.CGMA  
  84. #CC>EC # 1 Skill is Collaboration # 2 Skill is Communicationaccording to 2012 IBM GlobalCEO Study
  85. #theBounce
  86. Corporate Learning Matrix
  87. Are  you  a    Mr.  T-­‐  shaped  Professional?  
  88. #Connect&Collaborate  
  89. #CPAInnovate  MACPA  Summit  –  May  17th,  2013  Mar0n’s  West  
  90. #Ar0st&CPA  •  Lots  of  ways  to  mess  up!  •  Heat  is  needed  to  shape  the  glass  •  Long  setup  0me  for  quick  finish  •  Try,  learn  and  adjust      -­‐Tim  McFadden  
  91. Innova0on  adop0on  =  Social  Networks    “The  degree  to  which  an  individual  in  a  social  network  is  connected  to  other  individuals  in  the  network  (actor  centrality)  has  been  shown  to  have  a  major  influence  on  that  individual’s  adop&on  of  business  innova&ons.”                  –  Research  Report  by  Associa0on  of  American  Medical  Colleges  
  92. #MDSUMMIT13    Innova0on  thru  Collabora0on  13  Top  Thought  Leaders  25  Top  technology  &  Sorware  Vendors  Terri   Polley,   Gail   Perry,   Teresa  MacKintosh,   Jennifer   Warawa,  Donny   Shimamoto,   Byron  Patrick,   Clarke   Price,   Erik  Asgeirsson,   Tom   Hood,   Ron  Baker,    Jody  Padar,  Joel  Sinkin,  Reggie  Henry  and  more…  Collabora0on  Technologies  
  93. Membership
  94. Tom  Hood,  CPA.CITP  CEO  Maryland  Associa1on  of  CPAs  Business  Learning  Ins1tute  (443)  632-­‐2301  E-­‐mail  tom@macpa.org  Web  h`p://www.macpa.org  Blog  h`p://www.cpasuccess.com  Blog  h`p://www.bizlearningblog.com      Follow  me  on:  ü   TwiTer:  hTp://www.TwiTer.com/tomhood  ü   LinkedIn:  hTp://www.linkedin.com/in/tomhood  ü   Facebook:  hTp://www.facebook.com/thoodcpa  ü Plaxo:  hTp://tomhood.myplaxo.com  ü Slideshare:  hTp://www.slideshare.net/thoodcpa  ü Youtube:  hTp://www.youtube.com/thoodcpa  ü Second  Life  avatar  name:  Rocky  Maddaloni  

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