MACPA 2014 Professional Issues Update - Special Business & Industry edition
Post on 12-Sep-2014
8 Views
Preview:
DESCRIPTION
Transcript
Tom Hood, CPA, CITP, CGMA
Business & Industry Edition Rockville, MD
March 26, 2014
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 !
http://macpa.cnf.io!!
Respond to a Poll!
Ask a Question!
Select the session: Business & Industry PIU
Download today’s slides at … www.SlideShare.net/thoodcpa
Insights to Ac,on
“One without the other is either useless or destruc,ve”
http://cpa.tc/4d7
The future is so bright, I gotta wear shades… - Timbuk3
The CPA Career
Expects a 13% growth rate in accounting and auditing jobs from 2012
to 2022
# 3
2014
Accounting education records broken
2013 AICPA Trends Report
40,350 CPA firm new hires 82,177 graduates
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
The CPA Brand
The
The future of accounting is bright – accounting students from six Maryland universities at MACPA – NABA event
http://cpa.tc/4aa
What do you want from your employer?
What are you looking for in your associa,on?
CFO - the Chief Future Officer?
Ash Noah CPA, FCMA, CGMA VP External Relations – Management Accounting
The future CFO 2013 IBM
20 20 20
The future business paradigm?
21 21 21
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 22 22
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 23 23
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 24 24 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 25 25
Measures and focuses on non-financial value
Rebooting Business - 2012 CGMA
26 26 26
Measures and focuses on non-financial value
Rebooting Business - 2012 CGMA
27 27 27
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 28 28
Big Data enabled
From insight to impact - 2013 CGMA
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 30 30
Overcoming impediments to harnessing Big Data
From insight to impact - 2013 CGMA
31 31 31
Five traits of the data enabled CFO
From insight to impact - 2013 CGMA
Source: IBM CEO Survey - Leading Through Connections
Turns data to insights to action
Shared Service Centers
Technology SCALE BENEFITS
Focus on Process and Technology
Finance function has delivered scale benefits
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 35 35
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 36 36
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 37 37
The role of finance throughout the innovation lifecycle Leading innovation and managing risk Managing Innovation- 2013
CGMA
38 38 38
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 39 39
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 40 40
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%
CFO of the Future will create strategic impact
42 42 42
CFO – Striking the right balance
43 43 43
CFO of the Future builds business capabilities
44 44 44
Importance of various skills for finance – as rated by non-finance personnel
The inside track ; Partnering for value- 2012 CGMA
45 45 45
Skills most in need of improvement by finance personnel
The inside track ; Partnering for value- 2012 CGMA
46 46 46
Collaboration and decision support
The inside track ; Partnering for value- 2012 CGMA
47 47 47
IBMs Chief Future Officer
48 48 48
Collaboration and decision support
Applying principles to management process & practice
50 50 50
7 7 7
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
8 8 8
Will be data enabled
22 22 22
The role of finance throughout the innovation lifecycle Leading innovation and managing risk
6 6 6 Talent Pipeline Draining Growth 2012 CGMA
Developer of talent pipeline
24 24 24
CFO – Striking the right balance
51 51 51
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
Thank You!
Controller & CFO Roundtable
Held November 18, 2013
Organiza,on Type
50%
25%
15%
10%
Private company Public company Not-‐for-‐profit Other
Staff Size
18%
32% 36%
9% 5%
1 -‐ 10 11 -‐ 50 51 -‐ 250 251 -‐ 500 501 -‐ 1,000
Number of CPAs on Staff
64%
36% 1 2 -‐ 5
Genera,ons
64%
32%
5%
'46 -‐ '64 Boomers
'65 -‐ '79 Gen X
'80 -‐ '00 Milleniels or Gen Y
The New Normal - VUCA
Cloud compu,ng? 9%
36%
5% 14%
32%
5%
Completely there ParLally there In process Planning on moving EvaluaLng Not interested
Big Data
0 2 4 6 8 10 12 14
Other
Not using at all
Benchmarking
Fraud detecLon
Strategic planning
ForecasLng
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
Business & Industry Conference
• April 24, 2014
• Turf Valley Resort – Howard County
• 8:15 a.m. to 5:00 p.m.
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
CPA Innova,on Summit • Monday, June 16, 2014
• Hyae Regency-‐ Bal,more
• 8:00 a.m. to 5:30 p.m.
Regulations & Standards���
Accounting���Auditing���
Tax
#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)
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
GASB 67 & 68
Federal Agenda
• Mobile Workforce • What’s at Stake • DATA Act • Keep cash basis for personal service companies (S Corps & Partnerships)
• Stop Patent Trolls
“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
CPA Day 2014
CPA Day in Annapolis – January 29th, 2015
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
Students & NABA at CPA Day
MACPA State Budget Task Force to Host GASB Pension Summit – Dec 14
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
New CPA Swearing-‐in Ceremony
November 4, 2014 BWI Hilton
“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?
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
“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)
Maryland’s Future
The Shift Change!
Dealing with the Shift Change – MACPA Young Professionals
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.
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
http://www.macpa.org/Content/leadership-academy.aspx
June 24-26, 2014
Learning
www.blionline.org
• Identify Competencies • Career Path (Ladder) • Curriculum • Cloud Learning
Our approach – The Four C’s
The right talent with the right skills at the right time
www.blionline.org
www.blionline.org
The Bounce – Career path
Curriculum design by BLI and AICPA using Top 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, FP&A,
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.
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 D&S learning center. ! ! ! !"
!- Allen DeLeon, Managing Partner"
www.blionline.org
R.O.I = R.O.P
Technology
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
Content Mgmt
Social and Cloud
2010-2015
interactions
Social Business Systems
Systems of Record
Systems of Engagement
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.
Cambrian “Big Bang” Explosion
June 16, 2014 – Hyatt Regency Inner Harbor http://cpa.tc/3pz
Generations
Generational Issues
Tone at the Top Cross generation meetings
Communication with Feedback frequently Trust & try Openness
Embrace technology Build on strengths
Dealing with Generations
• Build on Strengths • Create a Positive Work Environment • Collaborate
Workplace
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
Work is not a place, it is what
you do. And
What you do while working
is fundamentally different.
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
The only career advice you’ll ever need…
You are in a race…!
Caused by this guy…!
It’s really a math problem…!
2006!
Picture: John Drake - Flickr!
“…where the most important skill is the ability to acquire new skills…” - Robert Safian - FastCompany!
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!
You can’t beat the machine…!
But you can win if you work with the machine…!
The five C’s!
• Creative & Critical Thinking!• Contextual Awareness!• Connections & Relationships!• Communication!• Collaboration!
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 L>C!4. Work like an immigrant!5. Think like an artist!
Connect & Collaborate!
A leader’s job is to define context and provide hope and inspiration...#
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
top related