What are the top issues facing CFOs, Controllers, and CPAs in Business/Industry, NFP and Government? MACPA CEO Tom Hood, voted second most influential leader in the CPA Profession in Accounting Today’s 2013 list of the Top 100 Most Influential People in Accounting (his ninth time on the list) sees five fundamental shifts facing accounting now – Leadership, Learning, Technology, Generations and Workplace. In a world of rapid change and increasing complexity, the winners will be those individuals and organizations who can keep their L>C², their rate of learning must be greater than the rate of change and greater than their competition. Tom’s updates are always popular for CPAs and include the latest trends and issues the profession is facing locally, nationally, and globally. This special Business & Industry Edition also covers a special session on the CFO of the Future by Ash Noah, CPA, CGMA of the AICPA/CGMA and a presentation by our Business & Industry Committee of the results of our ThinkTank session on the major issue and opportunities facing CPAs in B&I by Skip Falatko and B&I member Joselin Martin. Also include is an update on legislation and regulation and the advocacy efforts of the Maryland Association of CPAs.

1. Tom Hood, CPA, CITP, CGMA
Business & Industry Edition
Rockville, MD
March 26, 2014

2. Tom Hood, CPA, CITP, CGMA!
Tom Hood, CPA, CITP, CGMA
CEO
MACPA www.macpa.org
and
Business Learning Institute (BLI)
www.blionline.org!
http://www.linkedin.com/in/tomhood/!
If there is a conversation about the future of
the profession, you're bound to hear Hood's
name mentioned as one of the people
leading the way.
– Accounting Today Magazine!
• Named the Second Most Influential in
Accounting by Accounting Today Magazine
2013
• Linked-In Top 150 Influencer
• Top 25 Influencers in Learning & HR by HR
Examiner
• Top 25 Thought Leaders in Public Accounting
by CPA Practice Adviser
• Working on Learning Management with
AICPA/CPA2Biz, Cloud Curriculum,
Performance Management !

3. http://macpa.cnf.io!
!
Respond to a Poll!
Ask a Question!
Select the session:
Business & Industry PIU

4. Download today’s slides at …
www.SlideShare.net/thoodcpa

5. Insights
to
Ac,on
“One
without
the
other
is
either
useless
or
destruc,ve”

7. http://cpa.tc/4d7

8. The future is so bright, I gotta wear
shades… - Timbuk3

9. The CPA Career

10. Expects a 13% growth rate in
accounting and auditing jobs from 2012
to 2022

11. # 3
2014

12. Accounting education records broken
2013 AICPA Trends Report
40,350 CPA firm new hires
82,177 graduates

13. CPA credential in high demand!
Source: Wall Street Journal, 8/13/13
25%
38%
0
5
10
15
20
25
30
35
40
2006
2013
CFOs who are CPAs
Employers: Most desired credential
Solid salary growth
Entry-level demand also strong
Robert Half 2014 Salary Guide

14. The CPA Brand
The

16. The future of accounting is bright – accounting students from six
Maryland universities at MACPA – NABA event
http://cpa.tc/4aa

17. What
do
you
want
from
your
employer?

18. What
are
you
looking
for
in
your
associa,on?

19. CFO - the Chief Future Officer?
Ash Noah CPA, FCMA, CGMA
VP External Relations – Management Accounting
The future CFO 2013
IBM

20. 202020
The future business paradigm?

21. 212121
Of Global CFOs do not believe
that the ‘CFO’ title adequately
covers the diversity in the role
Chief Future Officer?
Finance Forte Survey 2011
Ernst & Young

22. 222222
Report the ability to find the right
skills is progressively more difficult
the higher the roles are within the
organization
Chief Future Officer?
Plugging the skills gap 2012
EIU
68%

23. 232323
Chief Future Officer?
Turning the Tide; Accenture
40%Reported high-end
analytical skills as being
the future success of their
organization
But only
15%
Of those have these skills available

24. 242424
Talent Pipeline Draining Growth 2012
CGMA
Developer of talent pipeline
Of c-suite respondents agreed
that the ability to attract, retain
and deploy the right talent is
‘the’ main competitive
advantage
over a
third

25. 252525
Measures and focuses on
non-financial value
Rebooting Business - 2012
CGMA

26. 262626
Measures and focuses on
non-financial value
Rebooting Business - 2012
CGMA

27. 272727
Recognizes value in non-financial
measures*
* Extent of value provided - % of respondents selecting 8-10 on a scale of 10.
Rebooting Business - 2012
CGMA

28. 282828
Big Data enabled
From insight to impact - 2013
CGMA

29. Big Data enabled finance
• A minority (23%)
report no role in
anlaytics
• Another minority
(21%) claim a
leading role
• A 55% majority say
finance partners
with others
(55% = 37% + 9% + 9%)
• Interviews agree
on a collaborative
role
From insight to impact - 2013
CGMA

30. 303030
Overcoming impediments to harnessing
Big Data
From insight to impact - 2013
CGMA

31. 313131
Five traits of the data enabled CFO
From insight to impact - 2013
CGMA

32. Source: IBM CEO Survey - Leading Through Connections
Turns data to insights to action

33. Shared
Service
Centers
Technology
SCALE
BENEFITS
Focus on Process and Technology
Finance function has delivered scale benefits

34. INCREASED
INSIGHTS
BUSINESS
SUPPORT
REAL
BUSINESS
BENEFITS
Focus on People and Products
The future is about delivering value
Shared
Service
Centers
Technology
SCALE
BENEFITS

35. 353535
The catalyst for Innovation
§ Garners C-suite support for innovation
§ Promotes a culture of innovation permeating the whole
company, not just R&D
§ Devices employee incentives to both encourage
innovation and innovative culture
§ CFOs drive for predictability and reliability - an obstacle to
innovation
§ Flexibility and tolerance of failure are necessary
§ Financial processes and metrics need to be aligned with
innovation lifecycle
§ Learns to ‘live with ambiguity’
Managing Innovation- 2013
CGMA

36. 363636
The innovation imperative
§ Average tenure of a
company in the S&P500
has fallen to 18 years from
61 years in 1950s
Managing Innovation- 2013
CGMA

37. 373737
The role of finance throughout the innovation lifecycle
Leading innovation and managing risk Managing Innovation- 2013
CGMA

38. 383838
Chief Future Officer?
Leading through Connections: IBM
75%Collaborative
67%
Communicative
% of CEOs that identified these skills as CRITICAL for
future success
61%
Creativity

39. 393939
Chief Future Officer?
Turning the Tide; Accenture
52%Report international skills
as being critical for the
future success of their
organization
But only
18%
Of those have these skills available

40. 404040
Of the global respondents
identified ‘strategic vision’ as the
hardest skill to find for executive
roles within their organizations
Chief Future Officer?
Plugging the skills gap 2012
EIU
55%

41. CFO of the Future will create strategic impact

42. 424242
CFO – Striking the right balance

43. 434343
CFO of the Future builds business capabilities

44. 444444
Importance of various skills for finance – as
rated by non-finance personnel
The inside track ; Partnering for value- 2012
CGMA

45. 454545
Skills most in need of improvement by
finance personnel
The inside track ; Partnering for value- 2012
CGMA

46. 464646
Collaboration and decision support
The inside track ; Partnering for value- 2012
CGMA

47. 474747
IBMs Chief Future Officer

48. 484848
Collaboration and decision support

49. Applying principles to management
process & practice

50. 505050
777
Greatest value coming from
non-financial sources*
* Extent of value provided - % of respondents selecting 8-10 on a scale of 10.
CFO of the Future will create strategic impact
888
Will be data enabled
222222
The role of finance throughout the innovation lifecycle
Leading innovation and managing risk
666
Talent Pipeline Draining Growth 2012
CGMA
Developer of talent pipeline
242424
CFO – Striking the right balance

51. 515151
FURTHER READING
http://www.cgma.org/Resources/Reports/DownloadableDocuments/CGMA-managing_innovation.pdf
http://www.cgma.org/Resources/Reports/DownloadableDocuments/inside-track.pdf
http://www.cgma.org/Resources/Reports/DownloadableDocuments/CGMA_launch_report.pdf
http://www.cgma.org/Resources/Reports/DownloadableDocuments/From_insight_to_impact-
unlocking_the_opportunities_in_big_data.pdf
http://www.cgma.org/Resources/Reports/DownloadableDocuments/CGMA_Talent_pipeline_report.pdf

52. Thank You!

53. Controller
&
CFO
Roundtable
Held
November
18,
2013

56. Organiza,on
Type
50%
25%
15%
10%
Private
company
Public
company
Not-­‐for-­‐profit
Other

57. Staff
Size
18%
32%
36%
9%
5%
1
-­‐
10
11
-­‐
50
51
-­‐
250
251
-­‐
500
501
-­‐
1,000

58. Number
of
CPAs
on
Staff
64%
36%
1
2
-­‐
5

59. Genera,ons
64%
32%
5%
'46
-­‐
'64
Boomers
'65
-­‐
'79
Gen
X
'80
-­‐
'00
Milleniels
or
Gen
Y

60. The New Normal - VUCA

70. Cloud
compu,ng?
9%
36%
5%
14%
32%
5%
Completely
there
ParLally
there
In
process
Planning
on
moving
EvaluaLng
Not
interested

72. Big
Data
0
2
4
6
8
10
12
14
Other
Not
using
at
all
Benchmarking
Fraud
detecLon
Strategic
planning
ForecasLng

78. Next
Roundtable
Event…
• Friday,
May
9,
2014
• 8:00
a.m.
to
9:40
a.m.
• MACPA
Columbia
Center
–
Columbia,
MD
• Two
hours
free
CPE

79. Business
&
Industry
Conference
• April
24,
2014
• Turf
Valley
Resort
–
Howard
County
• 8:15
a.m.
to
5:00
p.m.

80. Quarterly
Financial
Leaders
Series
• Thursday,
May
22,
2014
• “Smarter
Decision-­‐Making”
• Led
by
Jennifer
Elder
• 8:00
a.m.
to
12:00
p.m.
–
4
Hours
CPE
• MACPA
Offices
-­‐
Towson,
Maryland

81. CPA
Innova,on
Summit
• Monday,
June
16,
2014
• Hyae
Regency-­‐
Bal,more
• 8:00
a.m.
to
5:30
p.m.

82. Regulations &
Standards
Accounting
Auditing
Tax

83. #Accoun,ngStandards
Public
Private
Companies
Private
Companies-­‐
Small
Business
Public
Private
Companies
Private
Companies
Private
Companies-­‐
Small
Business
Financial
ReporLng
IFRS
(IASB)
IFRS-­‐SME
(IASB)
GAAP
(FASB)
GAAP-­‐PCC
(FASB)
FRF-­‐SME
(AICPA)
AudiLng
IAASB
IAASB
PCAOB
ASB
(AICPA)
ASB
(AICPA)
ASB
(AICPA)
Ethics
IFAC
IFAC
PEEC
(AICPA)
PEEC
(AICPA)
PEEC
(AICPA)

84. FASB,
PCC,
FRF-­‐SME
• 13-01A Identifiable Intangible Assets – Business
Combinations
• 13-02 Variable Interest Entities
• 13-01B Accounting for Goodwill
• 13-03A Variable Pay – Fixed Interest Rate Swaps
• 13-013B Variable Pay – Fixed Interest Rate Swaps

85. GASB
67
68

87. Federal
Agenda
• Mobile
Workforce
• What’s
at
Stake
• DATA
Act
• Keep
cash
basis
for
personal
service
companies
(S
Corps
Partnerships)
• Stop
Patent
Trolls

88. “If
you
don’t
want
to
be
involved
in
poli,cs,
then
be
prepared
for
the
consequences
of
those
that
do.”
2,500
Bills
-­‐
188
Legislators
–
90
days

89. CPA
Day
2014
CPA Day in Annapolis – January 29th, 2015

90. The
MACPA
2014
Agenda
ü Stop sales taxes on services
ü Protect contributory negligence
ü Prevent combined reporting
ü Prevent unnecessary CPA legislation
ü Promote the Maryland
Competitiveness Coalition’s Work

91. Students
NABA
at
CPA
Day

94. MACPA
State
Budget
Task
Force
to
Host
GASB
Pension
Summit
–
Dec
14

95. New
Appointments:
Art
Flach
–
Grant
Thornton
Phil
Kolb
–
University
of
Bal,more
Two
emerging
issues:
1)
Firm
Mobility
2)
Defini,on
of
Aeest
(SAS,
SSARS
+
SSAEs
(SOC
reports)
3)
CPE
in
small
bytes

96. New
CPA
Swearing-­‐in
Ceremony
November
4,
2014
BWI
Hilton

97. “It
is
more
important
to
stop
bad
bills
than
pass
good
ones.”
-­‐
Calvin
Coolidge
–
President
• Sales
tax
on
accoun,ng
and
tax
services
(defeated
several
,mes)
1997
-­‐
HB
580
,2001
HB
1337,
2004
HB
1364,
2007
-­‐
HB
448
,
2012
HB
1051
• Maryland
corporate
accountability
(SOX
and
404
for
private
companies
and
non-­‐profits)
2003
–
SB
560
• Debt
counseling
registra,on
by
CPAs
2011
-­‐
SB
741
• Maryland
Tax
Preparers
2007
-­‐
HB
998
• Compara,ve
fault
(several
,mes)
1998
SB
618
,
2000
-­‐
SB
779,
2001
SB
483
,
2007
-­‐
HB
110
• Elimina,on
of
audit
requirements
for
Maryland
cemeteries
2011
–
SB
352
•
AG
opinion
allowing
CPAs
to
include
Social
Security
numbers
on
documents
for
tax
services
–
8/30/2011
• Got
Exemp,on
from
MSP
Private
Inves,gator
Registra,on
If
not
us,
Who?

98. Building
and
Maintaining
the
CPA
Infrastructure
• Separate
funding
for
the
State
Board
2006
-­‐
HB
103
• Experience
requirement
to
make
Maryland
CPAs
compa,ble
with
UAA
(Uniform
Accountancy
Act)
2001
-­‐MD
COMAR
09.24.03.1
• Ethics
requirement
for
CPE
2006
-­‐MD
COMAR
09.24.02.02
• Mandatory
peer
review
and
prac,ce
quality
2005
–
HB
1223
• Exemp,on
for
CPAs
from
Maryland
(and
federal)
tax
preparer
regula,on
2008
-­‐
SB
817
• Prac,ce
mobility
2008
-­‐
HB
1296
• Expanding
acceptable
CPE
methods
2009
-­‐
HB
69
• 120/150
CPA
exam
legisla,on
2011
-­‐
SB
287
• Restricted
audits,
reviews,
and
compila,ons
to
CPAs
and
added
safe
harbor
for
compila,ons
2011
-­‐
HB
328
• State
Board
of
Public
Accountancy
reauthoriza,on
2013
-­‐
SB
238

99. “Our world is governed by numbers generated by the accounts of
nations and corporations.” – Jane Gleesom-White
Maryland founded on March 25, 1634 (380 years old)
MD CPA Law passed on April 10, 1900 (114 years old)

100. Maryland’s
Future

102. The Shift Change!

104. Dealing with the Shift Change – MACPA Young Professionals

105. The Next Gen CPA Leaders…
1. are proactive, flexible, adaptive and collaborative by nature;
2. have regained the trust of their clients and the public at large;
3. have successfully bridged the profession’s “leadership gap” by
focusing on succession planning, personal growth, and
generational cooperation;
4. have created the profession’s premier global industry
standards and best practices;
5. have redefined the profession through work / life integration,
collaboration, and a team-first approach; and
6. have earned a reputation as technological innovators.

106. How?
1. Professional unity
2. Work / life integration
3. The evolving nature of
leadership and new
leadership models
4. Proactive, goal-focused
planning
5. Networked
collaboration
6. Embracing and adopting
new technologies
From:
To:
Hierarchy
Network
Transactions
Relationships
Efficient
Effective
Well managed
Well led
Command Control
Connect
Collaborate
Push
Pull
Good
Great

107. http://www.macpa.org/Content/leadership-academy.aspx
June 24-26, 2014

108. Learning

112. www.blionline.org
• Identify Competencies
• Career Path (Ladder)
• Curriculum
• Cloud Learning
Our approach –The Four C’s
he right talent with the right skills at the right tim

113. www.blionline.org

114. www.blionline.org
The Bounce – Career path

115. Curriculum design by BLI and
AICPA usingTop 5
Competencies for future from
CPA Horizons research and job
levels from the BLI “Bounce”
Model. Leadership and
Communications were combined
and the 5th category expanded
to include practice specialties for
firms and functional areas for
corporate.
Examples would include:
Corporate Accounting, FPA,
divisional reporting, shared
services, etc.
CPA Firms would have audit, tax,
industry specialties.
These technical areas would
have specific curriculums
designed to meet their specific
technical competency needs.

116. CloudLearning
We see this system as a key recruitment and retention
tool, allowing us to offer our people many of the things
that the largest firms do - competency–based
curriculum, career paths, and just-in-time learning, and
our own custom DS learning center. ! ! ! !
!- Allen DeLeon, Managing Partner

117. www.blionline.org
R.O.I = R.O.P

118. Technology

121. Era
Years
Typical thing
managed
Best known
company
Content
mgmt focus
Mainframe
1960-1975
A batch
trans
IBM
Microfilm
Mini
1975-1992
A dept
process
Digital
Equipment
Image Mgmt
PC
1992-2001
A
document
Microsoft
Document
Mgmt
Internet
2001-2009
A web page
Google
Content
Mgmt
Social and
Cloud
2010-2015
interactions
Facebook
Social
Business
Systems
Systems of Record
Systems of Engagement

122. Information Chaos
Systems of Engagement and
Record misaligned.
Mobile means information
leaking everywhere.
Information coming faster
than it can be digested.
More silos than ever – and
new ones in the cloud
The “business” circumvents
IT.
We’re spending too much
on technology.
Information
Opportunity
End to end process
synchronization.
Governance occurs
regardless of device.
Analytics automatically
categorizes and disposes.
Governance occurs
regardless of location.
IT spend aligned with
opportunities.
Cloud opportunities to save
on legacy.
Business Benefit
Processes transparent to
customers.
Employees and customers
work on their own device.
Static information now at
rest put into motion.
It doesn’t matter where
information “lives.”
A new business/IT
alignment.
IT shifts from a cost center
to value creator.

123. Cambrian “Big Bang” Explosion

124. June 16, 2014 – Hyatt Regency Inner Harbor
http://cpa.tc/3pz

125. Generations

128. Generational Issues
Tone at the Top
Cross generation meetings
Communication with Feedback frequently
Trust try
Openness
Embrace technology
Build on strengths

129. Dealing with Generations
• Build on Strengths
• Create a Positive Work Environment
• Collaborate

130. Workplace

131. 1. All
cloud,
all
the
,me.
2. Technology
3. Mobility
4. An
open
mind
5. Coffee!
EssenLals
1. Don’t
manage.
Lead.
2. Hire
the
right
people.
3. Communica,on.
4. Integra,on
–
Outlook,
contacts,
e-­‐
mail,
calendars
5. Updates
/
connec,ons
Managing
virtually
Jody
Padar
Jason
Blumer
Jennifer
Katrulya

132. Work is not a
place, it is what
you do.
And
What you do
while working
is fundamentally
different.

133. 5
virtual-­‐work
essen,als
1. The
right
technology
2. The
right
mobile
solu,ons
3. The
right
apps
4. In-­‐office
tech
support
5. In-­‐office
moral
support

134. The only career
advice you’ll
ever need…

135. You
are
in
a
race…!

136. Caused by this guy…!

137. It’s really a math problem…!
2006!

138. Picture: John Drake - Flickr!
“…where the most important skill is the ability to
acquire new skills…” - Robert Safian - FastCompany!

139. T!
“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!
6/24/13!

140. You can’t beat the machine…!
But you can win if you work with the machine…!

141. The
five
C’s!
• Creative Critical Thinking!
• Contextual Awareness!
• Connections Relationships!
• Communication!
• Collaboration!

142. Career
Advice
Winning
the
race
against
the
machine!
1. Know Yourself - Strengths, Values Passions!
2. Create Protect your brand - You are the CEO
of You, Inc.!
3. Keep your LC!
4. Work like an immigrant!
5. Think like an artist!

143. Connect
Collaborate!

144. A leader s
job is to
define
context and
provide
hope and
inspiration...#

145. Tom
Hood,
CPA.CITP
CEO
Maryland
AssociaLon
of
CPAs
Business
Learning
InsLtute
(443)
632-­‐2301
E-­‐mail
tom@macpa.org
Web
hcp://www.macpa.org
Blog
hcp://www.cpasuccess.com