11/22/2019 1 Top Issues/Trends/MAP Case Study November 25, 2019 Carl Peterson, CPA, CGMA, VP – Small Firm Interests - AICPA 2019 PCPS CPA Firm Top Issues 2019 PCPS CPA Fi rm Top Issues Survey Sole practitioners 2–5 professionals 6–10 professionals 11–20 professionals 21+ professionals 1 Keeping up with changes and complexity of tax laws Finding qualified staff Finding qualified staff Finding qualified staff Finding qualified staff 2 Managing privacy / security risks Keeping up with changes and complexity of tax laws Keeping up with changes and complexity of tax laws Keeping up with changes and complexity of tax laws Retaining qualified staff 3 Keeping up with changes in technology and managing associated costs Managing privacy / security risks Seasonality / workload compression Seasonality / workload compression Managing work / life balance initiatives 4 Technical training of owners/partners and staff Seasonality / workload compression Managing privacy / security risks Retaining qualified staff Owner/partner accountability and unity 5 Seasonality / workload compression Developing and executing a succession plan Developing and executing a succession plan Managing privacy / security risks Seasonality / workload compression Managing privacy / security risks The Next 5 2019 PCPS CPA Firm Top Issues Survey Sole practitioners 2–5 professionals 6–10 professionals 11–20 professionals 21+ professionals 6 Client perception of value and willingness to pay for add’l work Keeping up with changes in tech and managing costs Retaining qualified staff (at all levels) Effective utilization & mgmt of staff Managing privacy/security risks 7 Leveraging technology to enhance client service Retaining qualified staff (at all levels) Keeping up with and implementing new acctg & attest stds Keeping up with and implementing new accotg & attest stds Fee pressure/pricing of services 8 Meeting clients' expectations and need for real-time information Keeping up with and implementing new acctg & attest stds Develop an entrepreneurial spirit among staff to enhance their client/industry- specific knowledge Client perception of value and willingness to pay for add’l work Modifying the firm’s business model to maintain relevancy into the future 9 Keeping up with and implementing new acctg & attest stds Leveraging technology to enhance client service Managing work/life balance initiatives Managing work/life balance initiatives Leveraging technology to enhance client service 1 0 Fee pressure/pricing of services Technical training of owners/partners and staff Keeping up with changes in tech and managing costs Lack of staff interest in being on traditional partner track Effective utilization & mgmt. of staff 1 2 3
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11/22/2019
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Top Issues/Trends/MAPCase Study
November 25, 2019
Carl Peterson, CPA, CGMA, VP – Small Firm Interests - AICPA
2019 PCPS CPA Firm Top Issues
2019 PCPS CPA Fi rm Top Issues Survey
Sole practitioners 2–5 professionals 6–10 professionals 11–20 professionals 21+ professionals
1Keeping up with changes and complexity of tax laws
BlockchainArtificial intelligenceRoboticsNatural capital concernsBanking evolutionQuantum computing
Go Beyond Disruption Podcasts
Weekly insights help you leverage disruption today to prepare you for tomorrow• Human intelligence: Will robots take my job?• Getting ready to be paid in crypto currency• Why RPA is for everyone• Tech trends to watch• The promise of technology
What tech will your firm of the future be leveraging?
Source: AICPA and CPA.com, CAS Benchmark Survey 2018
Client accounting advisory services (CAS)
Growing demand for planning & tax advisory services
2 out of every 3affluent individuals say tax knowledge tops the list of
important considerations when selecting a financial adviser
(1st Global)
10,000baby boomers are turning 65
every day over the next 10 years
(Pew Research Center study)
CPA firms identified core areas of financial planning
as high growth niche services
(Accounting Today Top 100 Firms, 2018)
financial planning is growing2x faster
than tax preparation services alone(IBIS World )
$30 trillion baby boomer wealth
transfer over next 20 years(The Wall Street Journal)
15% growth in demand for personal
financial advisers(U.S. Bureau of Labor Statistics)
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How do clients see financial planning?
If you do any combination of these, you are a PLANNER
Financial Planning Services
Tax
Estate
Education
Charitable
Retirement
Investments
Future-proof your services to individuals37
Who else is providing financial planning services?
Business owner
planning
Tax planning
Cash flowplanning
Estate planning
Retirement planning
Investment planning
Insurance planning
Cha
nnel
s
CPA firms
RIA
Wirehouse
Independent B/D
Insurance
Banks
Law firms
Service base –over 90% of practices offer this service
Established trend –Over 75% of practices offer this service
Developing trend –growing number of practices offering this service
Planning services footprint
Legend:
Internal analysis based on Ceruli’s U.S. Advisor Metrics
2016 report, internal data and other sourcesFuture-proof your services to individuals38
The PFP Certificates
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Retirement Planning Certificate
6 modules of online learning with 20 hours of CPE
• Retirement Planning Process
• Governmental and Employer Retirement Plans
• Personal Retirement Investments, Income & Expenses
• Analyzing Client Retirement Data
• Creating Implementing and Monitoring the Plan
• Elder and Special Needs Planning
Pass the online Proctored exam to earn the digital badge/certificate
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Estate Planning Certificate
8 modules of online learning with 19 hours of CPE
• Estate Planning Process
• Trusts and Estate Planning Documents
• Basic Estate and Gifting Strategies
• Advanced Estate Planning Strategies
• Closely Held Business Estate Planning
• Incapacity and Postmortem Estate Planning
• Integrating Estate Planning w/the Tax & Financial Plan
• Charitable Planning
Pass the online Proctored exam to earn the digital badge/certificate41
Investment Planning Certificate
8 modules of online learning with 18.5 hours of CPE
• Investment Planning Process
• Investment Data Gathering and Analysis
• Creating the Investment Policy Statement
• Portfolio Management
• Investment Vehicles and Strategies
• Investment Monitoring and Updating
• Integrating Investments with the Financial Plan
• Education Planning
Pass the online Proctored exam to earn the digital badge/certificate42
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Risk Management and Insurance Planning Certificate
8 modules of online learning with 20 hours of CPE
• Risk Management Planning Process
• Insurance Contracts and Needs Analysis
• Life Insurance
• Annuities
• Medical, Disability, and Property and Casualty Insurance
• Group Insurance and Employee Benefits
• Executive and Deferred Compensation Arrangements
• Financial Planning with Business Owners
Pass the online Proctored exam to earn the digital badge/certificate43
PFP Practical Applications Certificate
6 modules of online learning with 20 hours of CPE
• PFP Standards and Responsibilities• PFP Regulatory and Fiduciary Landscape• Personal Financial Planning Process• Cash Management Strategies• PFP in Practice, Part 1 and Part 2 (Case studies)
The digital badge/certificate will be issued upon completion of all 5 modules, no proctored exam is required for this certificate.
Sales training for the CVFI credential44
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What services will your firm of the future be offering?
What resources do you need to make that happen?
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Keeping up with change
Keeping up with changing tax laws/regulations
• Sec 199A flowchart
• Reform Guide
• TCJA Supplement
• Planning toolkit
• Planning letters
• Video/Webcasts
• Engagement ltrs
• Organizers
• Checklists
• Practice guides
• Podcasts
• Alerts
• Tax tech resources
• Tax issues FAQs
• Practice mgmt
PEEC Standards InterpretationHosting Services - Examples• Becoming the sole host of a client’s financial or non-
financial information system
• Serving as custodian for the client’s data in such a way that the client’s data is incomplete and accessible only through the CPA
• Providing business continuity or disaster recovery services to the client
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Hosting Services – Answers/FAQs• AICPA Professional Ethics Division
– FAQs: Nonattest services (As of February 25, 2019)
– AICPA is developing resources to assist CPAs in implementing the standard, scheduled EOY 2019
What are the staffing needs of your firm of the future?
What resources do you need to make that happen?
International
International influences on practice management- IAASB (International Auditing & Attest Standards Board)
- IESBA (International Ethics Standards Board for Accountants)
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What else will your firm of the future need to think about…IFRS, Global Regulations, access to tools & information?
Other
Accounting Advisory Council Toolkit for Practitioners and Firms
PCPS Update
• Benefits for your firm
• Maximizing success
• Suggestions to improve or encourage change
• Advice on how to get involved or lead the formation at a local university
• Testimonials / interviews from active practitioners
aicpa.org/pcps/aac
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Succession Podcast Series
Exclusive content available only to PCPS members. Learn from Joel Sinkin, Terry Putney and Bill Carlino• Single Owner Series:
− Creating a succession plan
− Due diligence
− Valuation
− Maximize client retention
• Multi-Partner Series:
− How to admit new partners
− How to close your merger
− Internal succession and bench strength
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Go Beyond Disruption Podcasts
Weekly insights help you leverage disruption today to prepare you for tomorrow• Human intelligence: Will robots take my job?• Getting ready to be paid in crypto currency• Why RPA is for everyone• Tech trends to watch• The promise of technology
Small Firm Philosophy Podcasts
• Inside a virtual firm• Firm culture• Growing through M & A• Risk assessment• Series on value billing
Introduce millennial all-stars – small business owners, entrepreneurs, freelancers – along with a cool, millennial CPA• Spooky small biz money myths• So you want to start your own small biz• Leaving your job and monetizing your passion• The financial side of work-life balance• Cryptocurrency and small business• Revenue recognition and small business
PCPS WebcastsWe’ve partnered with CPAFMA on MAPCasts!
• PCPS members can now attend at the CPAFMA member rate
• Topics covering current practice management, the latest trends, best practices and developments
TOP ENGAGED CONTENT OF 2019Share these trending articles on your personal and professional channels.
PROFESSION ISSUES• Keeping pace in a tax environment that never slows. A blog highlighting proposed changes to
AICPA’s Statements on Standards for Tax Services (SSTSs). Click to share.
• Don’t overlook this crucial part of estate planning. An overview of how to properly help clients plan for the future and how the TCJA can impact estate planning. Click to share.
• Enabling finance as a business partner. An article about the value of integrated business planning (IBP) to support business growth. Click to share.
• #CPAPowered national awareness campaign. A series of short, humorous videos that highlight the value CPAs bring to small businesses. Click to share.
TECHNOLOGY
• The 5 questions CPA leaders should ask every week. An article about challenging your assumptions. Click to share.
• Watchlist for future finance innovators. A high-level review of technology that will revolutionize the accounting profession. Click to share.
HUMAN SKILLS
• Are you overlooking emotional intelligence in your career? A blog discussing how emotional intelligence can help you get ahead. Click to share.
• Your stress isn’t just affecting you; it’s hurting business. An article outlining tips on how to manage stress levels during busy times. Click to share.
ACADEMIC AND STUDENT INITIATIVES
FOR STUDENTS AND GRADUATES
• ThisWayToCPA.com and StartHereGoPlaces.com – explore career pathways in accounting and find support on your journey to the CPA
• AICPA Legacy Scholarships and AICPA Foundation High School Scholarship – learn about financial assistance for students committed to pursuing CPA licensure
FOR TEACHERS AND PROFESSORS• Accounting Education Center – get the resources you need, including curated course materials, faculty
award programs and a dedicated education newsletter
• AICPA Minority Doctoral Fellowship, Accounting Doctoral Scholars and William Ezzell Scholarship –discover programs and financial support for CPAs pursuing their Ph.D.
• AICPA Accounting Program for Building the Profession – access information about a training program and curriculum to teach advanced accounting courses in high school
• Student Engagement toolkit – access presentations, talking points and more to help inspire the next generation of CPAs
• Accounting Accreditation Practitioner Engagement Program – help increase practitioner engagement in the accreditation process by participating in this program with
Thriving in the digital era requires both digital intelligence and human intelligence. Access these AICPA resources to guide you.
INSIGHTS
• Human Intelligence series – sharpen critical ‘human’ skills such as people management and decision-making through our library of resources, including a new eBook
• Go beyond disruption podcast – hear how to leverage technologies including blockchain, data analytics, robotic process automation and more, to bring greater value to your clients or organizations
• Go beyond disruption videos – expand your knowledge about disruptive technologies and processes such as blockchain and automation with these short videos
LEARNING PROGRAMS
• Data analytics – discover tools and insights to help you build and implement data-driven strategies
• Blockchain – build your knowledge about this rapidly developing technology and its growing impact on business
• Robotic process automation – find out how to leverage RPA for significant competitive advantage
• Cybersecurity – learn what you should be doing as a non-IT professional to help protect your clients or organization from cyber threats
GO BEYOND DISRUPTION
PCPS References and Contact Information
• PCPS Firm Practice Management Center –www.aicpa.org/pcps