What are the latest trends and issues facing the CPA profession? What is the future of finance and accounting in an age of exponential change? What is the future of the profession and what is the MACPA doing about it?
Tom Hood, the second most influential person in the CPA Profession and CEO of the Maryland Association of CPAs attempts to answer these questions and offer his perspective in this special update for MACPA members only focusing on CPAs in business industry, government and NFP.
9. “We stand on the brink of a
technological revolution that will
fundamentally alter the way we live,
work, and relate to one another. In its
scale, scope, and complexity, the
transformation will be unlike anything
humankind has experienced before.”
10. Borrowed from the US Army War College,VUCA was coined byThe Institute for the Future to
describe the rapidly changing and complex business environment since the Great Recession of
2008.
11. Technology is #1 HardTrend
Source: Miovision July 17, 2013 “The Internet ofThings andTransportation”
13. A 3-D printed carbon fiber house and SUV that share energy and
will disrupt these industries:
1. the construction and building industry, including suppliers, supply chain, and
unskilled labor;
2. the automotive and transportation industry, including components makers and the
classic assembly line; and,
3. the electric-utilities industry.
14. Race Against the Machines?
Source: Frey & Osborne –The Future of Employment – Oxford University
15. Source: CPA.COM Insight into the CPA of
the Future Study 2014
92% of CPAs are NOT Future Ready
Future Ready is the capacity to be
aware, predictive, and adaptive of
emerging trends, innovations and
changes in business, population, and
the social environment.
19. Cognitive Computing has three unique capabilities: 1) natural language
processing, 2) hypothesis generation and evaluation, and 3) dynamic learning.
21. “You can’t stop the waves, but
you can learn how to surf.”
– Jon Kabat Zinn
Oceans of Opportunity
22. 91%
Of firms expect
to continue
record hiring
levels
11%
Projected
accounting job
growth between
2014 and 2024
Demand for Accounting is Strong
And according to the DOL BLS,
faster than the average for all
occupations
23. References: US Department of Labor, Manpower Group Talent Shortage 2015
38%
of
employers
interna2onally
report
talent
shortages
in
2015
2009:
30%
Employment
of
accountants
and
auditors
is
projected
to
grow
11
percent
from
2014
to
2024,
faster
than
the
average
for
all
occupa2ons
–
US
Dept
of
Labor
2015
Accoun2ng
and
finance
staff
#1
in
demand
#8
in
talent
shortage
Demand for Accounting is Strong
24. • 2 of Top 10 Best Jobs (US News & World Report)
• Top 20 Happiest Professions (Huff Post)
• Top 10 in Demand Jobs/Hardest Jobs to Fill –
(Manpower Group)
And Career is Attractive
26. The Rise of the #DigitalCPA
Shift fromTangibles to Intangibles
27. Accoun2ng
firms
con2nuing
diversifica2on
$50
billion
40
30
20
10
2010
$42
$9
$12
$19
Revenue split at top 100 accounting firms
2014
$54
$17
$15
$20
Advisory services
91% growth!
now nearly one-third of revenue
Tax
17% growth
but now just over one-quarter of revenue
Audit and accounting
6% growth
now 37% of revenue — was 45% in 2010
Other
28. CFO à COO à CEO
There is a growing trend in CFOs moving to new roles as COOs and
even CEOs as they lead business transformation.
30. Six Steps to Ride the Waves
1. Embrace Digital.
2. Anticipate.
3. Collaborate.
4. Learning as the next
competitive
advantage.
5. Protect the Core
(Purpose &Values).
6. Make time for the
future.
31. ANTICIPATION
Strategic
Thinking
External
Awareness
Vision
Con2nuous
Learning
Innova2on
Crea2vity
Problem
Solving
Priori2za2on
Business
AcumenDecisiveness
Influencng/Persuading
Emo2onal
Intelligence
Consensus
Building
Collabora2on
Inspira2on
Risk
Management
An2cipate!
Three
Hard
Trends:
1. Government
Regula2on
2. Technology
3. Demographics
32.
33. Legislative / Regulatory / Standards
Federal
• Tax Due Dates changes
• Mobile Workforce legislation
Federal Regulators
• DOL Overtime Standards
Standards
• Peer Review Future of Practice Monitoring
In Progress
• CPE Standards – due October 1, 2015
• CPA Exam Standards due November 30, 2015
• FASB Not-For-Profit Exposure Draft Comments
• Revenue Recognition
34. Mobile workforce
Patent holding companies
* DOL overtime
* Cash basis
* IRS Service Levels
* Top Priorities of Maryland
Managing Partners
36. DOL
ALERT
“The
DOL
will
ask
for
stakeholder
support,
and
will
strongly
encourage
state
boards
of
accountancy
to
consider
more
rigorous
review
of
firms
performing
ERISA
audits
and
examine
how
licensing
requirements
might
play
a
role
in
improving
con2nuing
educa2on
and
boost
quality.
We
believe
the
contents
of
these
leders
to
be
reasonable
under
the
circumstances.”
-‐
AICPA
Regulatory
Affairs
Stats
from
DOL
Maryland
is
16th
in
#
of
plans/par2cipants/assets
with
282
firms
audi2ng
1,614
plans
with
3
million
par2cipants
and
$264.12
billion
in
plan
assets
24%
of
all
audits
and
22%
of
all
plans
37. “if you don’t have time to participate in the legislative
process, be prepared to accept the consequences of those
who do.”
3,400 bills filed in 2016 up from average of 2,500!
38. Legislative / Regulatory / Standards
State Board
• Positioning for Firm Mobility
• CPE tracking and audits
• Peer Review
State
• Offense
- Supersedeas (Appeal Bond) Caps
- Tax Dues Dates
- Wynne Interest Rates
- Peer Review – Subpoena Power
- Firm Mobility
• Defense
- Oppose Mandatory Paid Leave
- Stop Comparative Fault – Liability
- Stop Sales Taxes on Services
41. • Reduc2on
in
Rates
• Corporate
Single
Sales
Factor
• Interest
Rate
on
Tax
Deficiencies
&
Refunds
Jerry
Beard
-‐
STAX
42. Are you Leading the Transformation
of Finance and Accounting? !
43. “The real way it was in finance—in the world I grew up
in—is we spent all our time looking backwards…
[Modern Finance and Accounting] is now it’s about
looking to the future.” – Safra Catz, CEO of Oracle
(formerly CFO)
54. Creating the Magnetic Firm
Purpose Driven Great
Leadership
Culture
Of Growth
Inspiring
Workplace
Vision, Purpose and
Values based
Transparent and
Inspirational
Leadership
Learning Culture
- Self and Formal
Development
Flexible and Open
Work Environment
Focus on Strengths
and Positivity
Build Consensus and
Commitment
Career & Growth
Orientation – Career
Paths
Work/Life Balance
Inclusive and Diverse Leadership
Development at all
levels
Customer focused Coaching and
Feedback
High Performance –
Insight to Action
Anticipatory and
Proactive
Collaborative and
Team based
EffectiveTechnology
Tools - mobile
58. Core values:
• Integrity
• Competence
• Lifelong learning
• Objectivity
• Commitment to excellence
CPAs…Making sense of a changing and
complex world
CPAs are trusted advisors who help
people and organizations shape their
future. Combining insight with
integrity…
60. MACPA/BLI would make the “shift” and create an
open collaborative environment to increase
collaboration, learning, and our ability to move faster.
61. Our
Three
Goals
Goal
1.
Help
employees
iden2fy
and
address
the
challenges
and
opportuni2es
that
have
the
greatest
impact
on
the
business.
Goal
2.
Help
employees
strengthen
high-‐impact
connec2ons
by
enabling
them
to
collaborate
easily
with
others
inside
and
outside
the
organiza2on.
Goal
3.
Amplify
the
impact
of
those
efforts
by
building
an
infrastructure
that
allows
small
improvements
to
scale
easily
across
the
organiza2on.
62. Photo by Gwenaël Piaser - Creative Commons Attribution-NonCommercial-ShareAlike License http://www.flickr.com/photos/22841923@N02
Created with Haiku Deck
63. MACPA’s Digital Transformation
(Cloud/Mobile) Strategy
1. Digitization & workflow –shifting
resources and systems to growth
areas
2. Virtualization – Moving IT
infrastructure to cloud
3. Transformation to cloud – Increase
use of existing systems of
engagement (collaboration and
communication tools)
4. Transformation to cloud – New
cloud based systems – accounting
5. Transformation to cloud – Move
AMS and MACPA website
72. #FutureReady!
Is the capacity to be anticipatory
(aware, predictive and adaptive) of
emerging technology and trends in
business, demographics, and the
social environment impacting your
organization and industry.!
73. The Research
The latest research inside and
outside the CPA Profession re-
affirms theTop Competencies and
Skills needed by Accounting and
Finance Professionals
74. Leaders need new skills
in aVUCA world
• Anticipating and reacting to the
nature and speed of change.
• Acting decisively without always
having clear direction and certainty.
• Navigating through complexity,
chaos, and confusion.
• Maintaining effectiveness despite
constant surprises and a lack of
predictability.
Source: Conference Board 2015 Ready-Now Leaders Report
25% are notVUCA ready
3X Performance inTop 20%
75. CPA Horizons 2025 (AICPA)
The CPA Horizons 2025 Report by the AICPA
researched theTop Competencies needed by the
CPA Profession for the future (2025) and was
validated by thousands of CPAs in a grassroots
electronic and in-person facilitations.
76. The Chartered Global Management Accounting Competency Framework was developed in
2014 by the AICPA and CIMA JointVenture and follows the BLI ‘Bounce’ Framework.
77. Top Skills Needed for Accounting and
Finance Professionals
BLI Research in 2015 with over 1,000 responses from all segments of the CPA
Profession identified these top skill needed to be successful in these rapidly changing
times.This confirms and reinforces the research from the Conference Board, AICPA
CPA Horizons 2025 report, Bersin, and Burrus Research..
75%
covered by
theseTop 5
Skills
78. This led to our work with world renowned futurist and business
advisor and best-selling author, Daniel Burrus of Burrus Research.We
worked with Dan to add the context of the accounting and finance
profession to his Anticipatory Organization learning system to create
the Anticipatory Organization”Accounting and Finance edition .
http://www.blionline.org/ao
81. • An2cipa2on
• Strategic
Thinking
• External
Awareness
• Vision
• Con2nuous
Learning
• Innova2on
• Crea2vity
• Problem
Solving
• Priori2za2on
• Business
Acumen
• Decisiveness
• Influencing/Persuading
• Emo2onal
Intelligence
• Consensus
Building
• Collabora2on
• Inspira2on
• Risk
Management
• Communica2on
In November, 2015 we developed a strategic partnership with Daniel Burrus, a world-renowned
global futurist and business consultant who had researched the top competencies requested in his
work with many Fortune 500 companies.These aligned with own research at BLI.
83. D x V x F > R
Dissa9sfac9on
with
Status
Quo
=
Shared
meaning
and
context
created
collabora2vely
Vision
for
future
–
Strat
House
and
agreement
on
Top
5
Opportuni2es
First
steps
-‐
Top
5
ac2ons
using
Strat
House
or
Ac2on
plans
The
Change
Equa2on
Breaking
the
Pull
of
the
Past
Resistance
to
change
84. Mapping the AOAF learning
program to the CGMA
Competency Model
shows comprehensive
coverage of these skills
ANTICIPATION
Strategic
Thinking
External
Awareness
Vision
Con2nuous
Learning
Innova2on
Crea2vity
Problem
Solving
Priori2za2on
Business
Acumen
Decisiveness
Influencing/Persuading
Emo2onal
Intelligence
Consensus
Building
Collabora2on
Inspira2on
Risk
Management
Communica2on
An2cipatory
Organiza2on:
Finance
/
Accoun2ng
Edi2on
CGMA
Competency
Framework
85.
86. Mapping the MBA Express
learning program to the
CGMA Competency Model
shows comprehensive
coverage of these skills
• ADDING
VALUE:
GeOng
the
most
by
giving
the
most
• BUSINESS
STRATEGY:
Thinking,
planning,
ac9ng,
and
leading
• LEADERSHIP
STRATEGY:
Taking
people
to
new
places
and
higher
ground
• PERFORMANCE
MANAGEMENT:
GeOng
to
be[er
results,
faster
• POWERFUL
COMMUNICATION:
Conveying
meaning
and
earning
an
audience
MBAexpress
(All
modules)
CGMA
Competency
Framework
87.
88.
89.
90. AOAF recognized as 2016 Top
Learning Product
"As knowledge workers and professionals
whose value springs in large part from
their expertise, accountants are both
serious about their ongoing education,
and well-positioned to capitalize on new
ideas and new ways to demonstrate
their competence to clients…
The point of the coursework is to teach
you, literally, how to predict the future by
identifying reliable trends — and it
actually works. The applications for firm
strategy, client service, and guiding your
own career are endless.”
It also saw a push on different ways to
educate the profession, including in small
bites…offering to help accountants
boost their careers by bringing more
value to the table.
91. "The
An2cipatory
Organiza2on
Learning
System
helps
establish
a
mindset,
a
common
language
and
eventually
a
culture
of
being
an2cipatory
for
our
clients.
By
making
this
an2cipatory
skillset
a
core
strength
of
our
teams,
it
brings
crea2ve
and
new
ideas
that
make
us
more
valuable
to
our
clients
and
it
creates
a
game
changer
for
our
firm.”
-‐ Joey
Havens
Execu2ve
Partner,
HORNE
LLP
Top
50
CPA
Firm
92. •
It’s
possible
to
see
what’s
coming
based
on
hard
trends.
Important
in
posi2oning
our
organiza2ons
for
future
success
and
iden2fying
our
next
compe22ve
advantages.
• It
was
interes2ng
to
me
that
even
if
a
sol
trend
is
based
on
a
sol
assump2on,
it
could
s2ll
be
rela2vely
likely
to
happen.
• It’s
possible
to
an2cipate
disrup2on
and
stay
ahead.
Important
because
it
opens
all
kinds
of
possibili2es.
• I
learned
how
to
think
differently.
It
takes
prac2ce
but
it’s
worth
it.
93. Tom Hood, CPA, CITP, CGMA
• CPA Practice Adviser Accounting Hall of
Fame
• Named the Second Most Influential in
Accounting by Accounting Today Magazine
2015, 2013
• Top 150 Influencer by Linked-In
• Top 25 Influencers in Learning & HR by HR
Examiner
• Top 25 Public Accounting Thought Leaders
by CPA Practice Adviser
• Working on Learning Management with
AICPA/CPA2Biz, Cloud Curriculum,
Performance Management /XBRL,
Leadership & Generations
CEO
Maryland Association of
CPAs (MACPA)
www.macpa.org
Business Learning
Institute (BLI)
www.blionline.org
http://www.linkedin.com/in/tomhood/
Hood's
greatest
a/ribute
isn't
that
he
consistently
glimpses
the
future
more
quickly
than
the
rest
of
us
(though
he
does).
It's
that
he's
able
to
bring
it
back
to
the
present
and
serve
as
its
Breless,
inspiring
and
effecBve
champion.
– Accounting Today
Membership Organization
How we connect, protect, and achieve.
94. Norfolk
pines
"The
best
2me
to
plant
a
tree
was
20
years
ago.
The
second
best
2me
is
now."
114. 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
Tom Hood, CPA, CITP, CGMA
CPA Practice Adviser Accounting Hall of Fame
Named the Second Most Influential in Accounting
by Accounting Today Magazine 2015
Top 150 Influencer by Linked-In
Top 25 Influencers in Learning & HR by HR
Examiner
Top 25 Public Accounting Thought Leaders by
CPA Practice Adviser
Working on Learning Management with AICPA/
CPA2Biz, Cloud Curriculum, Performance
Management /XBRL, Leadership & Generations
CEO
Maryland Association of CPAs
(MACPA) www.macpa.org
Business Learning Institute
(BLI) www.blionline.org
http://www.linkedin.com/in/tomhood/