MACPA Spring 2012 Professional Issues Update for Biz/Industry CPAs

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Maryland Association of CPAs special edition town hall / Professional Issues Update for Business, Industry, Education, Government & NFP CPAs. Delivered to 200+ CFOs, Controllers, CPA Decision-makers on March 21, 2012 in Timonium, Maryland.

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MACPA Spring 2012 Professional Issues Update for Biz/Industry CPAs

  1. Professional Issues Update For BIEG Professionals By: Tom Hood, CPA, CITP, CGMA March 21, 2012 Crowne Plaza Hotel Timonium, MD
  2. THE MAP IS USELESS "The map keeps getting redrawn,because its cheaper than ever to go offroad, to develop and innovate and remake what we thought was going to be next. Technology keeps changing the routes we take to get ourprojects from here to there. It doesnt pay to memorize the route, because its going to change soon." - Seth Godin
  3. Welcome to the “New Normal”“…an  indisputable  leadership  challenge  that  ul3mately  requires  new  models,  bold  ideas  and  personal  courage  to  ensure  that  this  century  improves  the  human  condi3on  rather  than  capping  its  poten3al.”      –  World  Economic  Forum  
  4. In our hyper-networked, mobile, social, global world, the rules and plans of yesterday are increasingly under pressure; the enterprises and individuals that will thrive will be those willing to adapt in a disciplined, unsentimental way.Generation Flux is a term that describes all of this -the chaotic business era that we have moved into - aswell as the people who are poised to thrive in thisenvironment. - Robert Safian - editor FastCompany
  5. NAVIGATORS OF CHANGE
  6. 1. Sight - Ability to see emerging patterns and shift perspective when necessary2. Insight – Ability to think strategically and critically to gain insights 3. Create – Seek high leverage opportunities that build on your strengths4. Communicate - Ability to make your thinking visible to others and the ability to collaborate inside and outside your organization5. Inspire – Ability to mobilize support and engage others involved in doing the work to join you in ACTION 10 Five Qualities of Extraordinary Leaders
  7. OUR GYROSCOPE!
  8. What CPAs think about the future 30 Future Forums 1,000 CPAs Identified these top trends http://www.bizlearning.net/live/i2afutureforums
  9. Surfing  lessons!  http://www.macpa.org/Content/26336.aspx
  10. How are you doing?
  11. MANAGING THE SEA CHANGE • Change • Complexity • Compliance • Convergence • Competition
  12. Complexity the biggest challengefacing enterprises fromhere on will be theaccelerating complexityand the velocity of a 79%world that is operatingas a massivelyinterconnectedsystem. 51% 20
  13. Compliance
  14. Professional Standards Federal Laws State Laws & & Regulations Regulations
  15. Private Company Standards
  16. State Legislation Next CPA Day in Annapolis - January 16, 2013
  17. State  Legisla3on  
  18. Maryland  Legisla3ve  update  •  Sales  Tax  on  Services  –  No  vote  yet  from   CommiKee  (House  Ways  &  Means)  •  Digital  Download  –  wai3ng  for  CommiKee   (House  Ways  &  Means  CommiKee)  •  Combined  Repor3ng    -­‐  we  oppose  due  top   compliance  complexity  •  Recoupling  Deprecia3on  &  Estate  Tax    
  19. Maryland  Legisla3ve  update  Other  Issues:    •  Across  the  Board  Income  Tax  hike  +  Surcharge   for  $500,000  +  •  Possible  across  the  board  Sales  Tax  increase  •  Possible  extended  or  special  session  State  Board  of  Accountancy  •  CPA  Exam  applica3ons  delayed  90  days  •  PTIN  rush  to  reinstate  &  Industry  CPAs  
  20. State Legislation and Regulatory •  Accountancy bills (20 states) - 51 •  Auditor Rotation (3 states) - 8 •  Mobility (2 states) - 6 •  Regulation of Tax Preparers (3 states) - 5 •  Tax on Accounting Services (6 states) - 11 •  Peer Review (4 states) - 7 •  State Board Consolidation (6 states) 8
  21. 31Tsunami of 1099K and info returns
  22. dAct rkpla ce Frau MD WoCPAs in TaxThe increase in IRSactivity is swamping ourtax practitioners andcosting them hundredsof hours in chasingdown IRS notices. 32
  23. 33Convergence
  24. Public Private Int’l Company Company Company Financial Reporting Auditing Ethics State Boards of Accountancy
  25. 35Sarbanes-Oxley Act of 2003
  26. CPAs required to register as debt settlement advisors 36Dodd-Frank - the bill that keeps on giving
  27. 37Cascade fromacross the pond!
  28. Federal Accounting Standards?
  29. So what? What does this mean to BIEG CPAs? 39 39
  30. Our new research bears outthat the human dimension –relationships with customers,employees, partners andcommunities – will be key togetting things moving againand sustaining success overthe long run.CGMA & Business & Industrymembers
  31. What  do  young  professionals  need  to   Drivers of Value be  leaders?  
  32. Transparency  &  Accountability  
  33. "For Gen Y, training and development is the most highly valued employee benefit. The number choosing training and development as their first choice of benefit is THREE times higher than those who chose cash bonuses." Generation Y Born btw 1980 – 2000 (12 to 32) Generation X Born btw 1965 – 1979 (33 – 47) Boomers Born btw 1946 – 1964 (48 – 66) Traditionalists Born prior to 1945 (67 & older)
  34. •  Transparency & Performance Management = Accountability•  Free the Data & Free Skip•  Outside in vs Inside Out•  CPA as interpreter & business guide 45 Summing it all up…
  35. Moneyball  
  36. 1. Ask the naive question2. Be the house (measure, odds,risk)3. A willingness to try anything4. look around (especiallyoutside)5. Confidence matters - believein yourself Paul DePodesta - VP of Player Development for the New York Mets formerly Asst GM of Oakland A’s 47 Adopt a moneyball mindset
  37. MANAGING THE SEA CHANGE Captain of your own ship! •  Continuous Learning •  Competency •  Collaboration = Career Success
  38. 49 Picture: John Drake - Flickr ...where the most important skill is the ability toacquire new skills.
  39. It really is about this...
  40. 3 CriticalWorkforcePrioritiesRapidly developingworkforce skills andcapabilitiesFostering collaboration knowledge sharingDeveloping futureleaders 51
  41. OUR GYROSCOPE!
  42. In  1997,  the  CPA  profession  crowd-­‐sourced  its  future  with   over  3,500  CPAs  in  the  CPA  Vision  Project   That  was  re-­‐validated  in  2011  by  8,000+  CPAs   Our core purpose, our reason for being is CPAs... Making sense of a changing and complex world. Here is what they said…
  43. The  DNA  of  the  CPA  as  CFO   Values    Competencies  •  Leadership  •  Communica3on  •  Strategic  Thinking  •  Collabora3on    Synthesis  •  Technologically  Savvy  
  44. Our  Vision  Statement  for  the  future  is:   (  mandates  to  ourselves  for  a  successful  future)   CPAs are the trusted professionals who enable people and organizations to shape their future. Combining insight with integrity, CPAs deliver value by: •  Communica3ng  the  total   picture  with  clarity  and   objec3vity,   •  Transla3ng  complex   informa3on  into  cri3cal   knowledge,   •  An3cipa3ng  and  crea3ng   opportuni3es,  and   •  Designing  pathways  that   transform  vision  into  reality.  
  45. MACPA  Priori3es  1.  Connect Collaborate2.  Span Generational Divide3.  Alignment w/ Committees4.  Legislative Task Force5.  Leadership Development6.  Connect Pipeline
  46. Reflec3ons  from  BLI  Thought  Leaders  
  47. Critical TurningEntry-level Point CFO Staff Supervisor Controller Manager
  48. The  Idea  Store  is  open!  Mail Suggestions to ideastore@macpa.org
  49. MACPA  Special  Task  Force   •  Annual cost of Federal Offer CPA expertise to the state to Compliance $1.75 trillion help overcome budget issues in bi- •  Federal burden exceedpartisan, objective manner in order to costs of health care per bring about efficiency, transparency person by 50% and fiscal discipline. •  Cost per employee = $8,086 •  For SMB 20 = $10,500 per employee
  50. According to these young professionals, thefuture is one in which CPAs:● are proactive, flexible, adaptive andcollaborative by nature;● have regained the trust of their clients andthe public at large;● have successfully bridged the profession’s“leadership gap” by focusing on successionplanning, personal growth, and generationalcooperation;● have created the profession’s premierglobal industry standards and best practices;● have redefined the profession throughwork / life integration, collaboration, and ateam-first approach; and● have earned a reputation as technologicalinnovators. 63 Wisdom from the MACPA LeadershipAcademy
  51. Leadership Academy May 7-9, 2012 Crowne Plaza Timonium, MD
  52. MACPA Your Trusted Filter
  53. Providing a unique interface betweenmembers of the organizationDelivering unique creativityManaging a situation or organizationof great complexityLeading customersInspiring staffProviding deep domain knowledgePossessing a unique talent 67Become a Linchpin
  54. A leader sjob is toprovidehope andinspiration... 68
  55. Tom  Hood,  CPA.CITP   CEO   Maryland  Associa8on  of  CPAs   Business  Learning  Ins8tute   (443)  632-­‐2301   E-­‐mail  tom@macpa.org   Web  hNp://www.macpa.org  Blog  hNp://www.cpasuccess.com    

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