Digital CPA - How the Dynamics of the Client/CPA Relationship Changes in the Cloud

CPA2Biz, Inc. - Proprietary and Confidential Information

How  the  Dynamic  of  the  CPA/Client  Rela6onship  Changes  in  

the  Cloud      Firm  Panel  Discussion  

Tom Hood, CPA.CITP, CGMA CEO Maryland Association of CPAs

Business Learning Institute

Digital  CPA:  2012  CPA2Biz  Cloud  User  Conference  Gaylord  Na6onal  Harbor  

December  7,  2012  

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Moderator:  Tom  Hood  •  Named  Fourth  Most  Influen2al  Person  by  Accoun2ng  Today  

•  Top  25  Influencers  in  Learning  &  HR  by  HR  Examiner  

•  Top  25  Public  Accoun2ng  Thought  Leaders  by  CPA  Prac2ce  Adviser  

•  Currently  working  on    Learning  Management  with  AICPA/C2B&  Performance  Management/XBRL  

Tom Hood, CPA, CITP, CGMA CEO MACPA Business Learning Institute (BLI)

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CPA Panelists

Jim  Cashin  Patner  McGladrey  LLP  

Trevor  Smith  Director  of  Technology  Services  Harshman  Phillips  &  Co  

Steve  Gross  CEO  Trusted  CFO  Solu2ons  

CPA2Biz, Inc. - Proprietary and Confidential Information

CPA2Biz, Inc. - Proprietary and Confidential Information

CPA2Biz, Inc. - Proprietary and Confidential Information

Source:  Brian  Solis  author  of  The  End  of  Business  as  Usual  

Why  are  we  here?  

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Cloud  Compu6ng:  Disrup6ve  Innova6on  

•  Small  Business  Accoun2ng  and  Client  Accoun2ng    

on  the  verge  of  disrup2on  

•  Cloud  compu2ng  is  drama2cally  changing  how    

accoun2ng  soVware  is  developed  and  delivered    

•  New  paradigm  emerging  for  small  business  &  a  new  

market  is  being  created     Incredible Opportunity For Firms

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CPA  Horizons  2025  

•  1.  CPAs  must  stay  current  with,  embrace  and  exploit  technology  for  their  benefit  for  increased  efficiency  and  expansion  of  services.  

•  2.  The  profession  must  find  solu2ons  to  offer  investors  and  stakeholders  up-­‐to-­‐date,  real-­‐2me  financial  informa2on  and  to  increase  transparency.  

•  3.  CPAs  must  embrace  mobile  technologies  and  social  media  to  modernize  and  enhance  interac2on  and  collabora2on  with  clients  and  colleagues.  

CPA2Biz, Inc. - Proprietary and Confidential Information

•  Improve client financial performance with proactive consulting • Save time and reduce cost by standardizing and leveraging automation and repeatable processes •  Increase real-time collaboration with clients by accessing information in the Cloud •  Increase margins by providing higher value with increased productivity

•  Low margin transaction processing •  Means to an end; a Tax Return

•  Pressure to keep fees low •  Non-strategic

Before:  Transac2onal   Today:  Advisory  

CPA2Biz, Inc. - Proprietary and Confidential Information

Move  Up  the  Client  Value  Pyramid  

Client  Value  Pyramid  

Controllership  Services  Monthly  Close,  Fin  Statements,  Cash  Flow  Analysis  

Virtual  CFO  Budget,  Business  Planning,  Business  Modeling,  etc.  

Transac6onal  Services  Tax,  Write  up,  Bookkeeping,  A/P,  Payroll,  etc.  

More  CPAs  are  becoming  outsourced  CFOs  for  their  small  business  clients  

CPA2Biz, Inc. - Proprietary and Confidential Information

GeQng  Ver6cal  through  the  Cloud  Business  

Intelligence  Repor6ng  

Real-­‐Time  Client  Collabora6on  

Standardized  Workflows    

Client  Accoun6ng  Capabili6es  

driven  through  cloud  

compu6ng  

•   Professional  Services  –  90%  

•   Construc6on  –  76%  •   Retail  –  75%    

•   Not-­‐for-­‐Profit  –  73%  

•   Manufacturing  –  65%  

•   Wholesale  Distribu2on  –  61%  

•   Technology  Companies  –  59%  

•   Transporta2on  –  48%  

•   Hospitality  –  45%  

•   Franchises  –  40%  

•   Government  –  29%  

Most  Popular  Client  Ver6cals    for  Outsourced  Accoun6ng  Services        

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Game  Changing  Transforma6on  

Moving  From  Systems  of  Record    

To  Systems    of  Engagement    

•  Collabora2ve  •  Intelligent  •  Knowledge  Based  

TODAY     FUTURE    

•  Consolidate  •  Organize    •  Report  

(The  Digital  CPA  )  

Geoffrey  Moore  Slide  –  Adopted  for  CPA  Marketplace  

CPA2Biz, Inc. - Proprietary and Confidential Information

• Security:  73%  concerned  (          8%  from  2011)  

• Confiden6ality:  72%  concerned  (        8%  from  2011)  

• Privacy:  67%  concerned  (        11%  from  2011)  

• Availability:  64%  concerned  (          4%  from  2011)  

TOP  CONCERNS  (SIGNIFICANTLY  OR  SOMEWHAT  CONCERNED)  

CPA2Biz  Survey  Results  –  April  2012  Accoun2ng  Firm  Usage  of  Web-­‐Based  Applica2ons  

CPA2Biz, Inc. - Proprietary and Confidential Information

What  alleviates  CPAs’  concerns?  CPA2Biz  2012  Technology  Survey  

0%  

10%  

20%  

30%  

40%  

50%  

60%  

70%  

80%  

90%  

100%  

Company  reputa2on  

SOC  2     Other  firms'  usage  

Strong  SLAs  in  place  

Training  on  cloud  service  

Not  Important  

Somewhat  

Very  Important  

CPA2Biz, Inc. - Proprietary and Confidential Information

Digital  Darwinism?  

hnp://cpa.tc/engagement  

CPA2Biz, Inc. - Proprietary and Confidential Information

You  have  3  years  at  most!  

•  Cloud  •  Mobile  •  Social  •  Value-­‐added  •  Collabora2ve  

hnp://cpa.tc/socialbiz  

hnp://cpa.tc/socbiz  

Tom  Hood,  CPA.CITP  CEO  

Maryland  Associa6on  of  CPAs  Business  Learning  Ins6tute  

(443)  632-­‐2301  E-­‐mail  [email protected]  

Web  hip://www.macpa.org  Blog  hip://www.cpasuccess.com