Barry Melancon, CPA, CGMA President & CEO, American Institute of CPAs CEO, Association of International Certified Professional Accountants
Barry Melancon, CPA, CGMAPresident & CEO, American Institute of CPAs
CEO, Association of International Certified Professional Accountants
Spring Council 2018
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2,500,000,000,000,000,000bytes of data are created every day.
Source: DOMO
Since 2000
41%S&P 500CONSUMER-CENTRIC COMPANIES
have been acquired orgone out of business
Source: Accenture, 2018
39%TOP ACCOUNTING FIRMS
Source: AICPA
Major Firm Group member firms from 2000 no longer exist as
standalone firms
Top 10 decliningroles by 2022
Source: World Economic Forum Future of Jobs, 2018
1 Data entry clerks
2 Accounting, bookkeeping and payroll clerks
3 Administrative and executive secretaries
4 Assembly and factory workers
5 Client information and customer service workers
6 Business services and administration managers
7 Accountants and auditors
8 Material-recording and stock-keeping clerks
9 General and operations managers
10 Postal service clerks
TAKE A STEP.TECHNOLOGYMaster it before it masters you.
TRUSTBuild on your expertise.
TALENTThink broader.
7
AI PaaS
Gartner Hype CycleEXPECTATIONS
Digital Twin Biochips
Smart Workspace
Brain-Computer Interface Autonomous Mobile Robots
Smart Robots Deep Neural Network ASICs
5G Volumetric
Displays Self-Healing System Technology
Conversational AI Platform Autonomous Driving Level 5
Edge AI Blockchain for Data Security
Neuromorphic HardwareHuman Augmentation Knowledge Graphs
4D Printing Artificial General Intelligence
Deep learning
Carbon Nanotube IoT Platform Virtual Assistants Silicon Anode Batteries
Blockchain
Connected Home Autonomous Driving Level 4 Mixed Reality
Augmented Reality
Innovation Trigger
Source: Gartner, 2018
Peak of Inflated
ExpectationsTrough of
DisillusionmentSlope of
Enlightenment
Plateau of Productivity
Quantum
TIME
Megatrends for the profession, 2018EXPECTATIONS
Machine Learning
Blockchain
Big Dataand Analytics*
Software as a Service*
Innovation Trigger
Peak of Inflated
ExpectationsTrough of
DisillusionmentSlope of
EnlightenmentPlateau of
Productivity
TIME
Virtual Cognitive Expert Advisors (AI)
Source: CPA.com hype curve from Gartner and other sources
Cloud(SaaS) Blockchain
Client Accounting Services
Virtual CFO
Data analytics guide
Virtual CFO solutions
Digital CPA
Dynamic Audit Solution
Thought leadership
Wall Street Blockchain Alliance
Thought leadership
Cryptocurrency
SOC1 and SOC2
Artificial intelligence(machine learning, virtual Big data and analytics
Steps AICPA resources to help:
Learn fundamentals.
Become an expert.
Free learning:• Facebook Lives• Blogs• Podcasts• Watchlist
• Conferences and webcasts• Certificate programs• Learning labs
Apply to practice.
• Guidance• Frameworks• Checklists• Toolkits
TRUST
TRUST
ACCOUNTING AND AUDIT
Don’t forget the basics• Enhancing audit quality• Standards
– Revenue recognition, leases, credit losses
Optimize processes and insights with technology• Audit data analytics• RIVIO Clearinghouse• OnPoint Preparation, Compilation & Review tool• Dynamic Audit Solution
Explore one adjacent opportunity• Expansion of SOC reporting• Cybersecurity risk management• Integrated reporting and sustainability
aicpa.org/EAQ
Investors:
81%confidence in publiccompany auditors
80%confidence in independentaudit committees
Source: Center for Audit Quality Main Street Investor Survey, 2018
Guided engagements Integrateddata
Cloud platform
TRUST
ACCOUNTING AND AUDIT
OnPoint PCR main features
Intelligent checklists
Interactive methodology
Automated financialstatements
Data visualization
Real-time collaboration
Security
Technology Methodology Standards New skills
TRUST
ACCOUNTING AND AUDIT
Innovating the audit
October 2018Kickoff
TRUST
ACCOUNTING AND AUDIT
Next phase: Dynamic Audit Solution
MVP Release 1 Release 2 Ongoing
EstateRetirement
EducationRisk management
Investment
Tax
TRUST
PLANNING AND TAX ADVISORY SERVICES
Provide strategic guidance• Tax Reform Resource Center
– Quick reference guide and FAQs– 199A Flowchart and Tax Reform Chatbot– Impact of Tax Reform on Planning Toolkit
Maximize your time and value with technology• Integrated financial planning and tax prep platforms• Client dashboarding for holistic view• Integration financial aggregator tools• Life planning scenario forecasting
Meet broader planning needs• Roadmap to Planning and Tax Advisory Services• Planning and Tax Advisory Services web page
aicpa.org/taxreform | aicpa.org/growadvisoryservices
TRUST
PRACTICE MANAGEMENT
Understand the environment• MAP survey• Networking groups• New Small Firm Philosophy podcast series• PCPS Succession Planning Resource Center
Stand out• Financial Reporting Framework for Small-
and Medium-Sized Entities• New finance thinking for clients
Re-align strategy for the future• CGMA Business Model Framework• PCPS Firm inMotion e-Toolkit
aicpa.org/pcps | aicpa.org/smallfirms
Small Firm Philosophy podcast series
Topics:
Strong firm culture
Virtual firms
Niche services
Succession planning
and more…
TRUST
M&A ACTIVITY CONTINUES TO RISE
120 mergers and acquisitions in largest US firms in 2018
14% YoY
of firms acquired non-CPA firms56% YoY
As of October 12, 2018. % increase is as of same period in 2017.
35
TRUST
CYBERSECURITY
Protect yourself• Cybersecurity Risk Management Reporting Framework• New 2018 CPA Cybersecurity Checklist
Build your knowledge• Free learning: Facebook Live, blogs, podcasts• Webcasts and conferences• Certificate programs
Expand your services and promote your value• PCPS Exploring Cybersecurity Toolkit• Reporting on an Entity’s Cybersecurity
Risk Management Program and Controls• CGMA Cybersecurity Risk Management Tool• New Resources for firms to talk to your clients
aicpa.org/cybersecurity
IT leaders:
82%predict unsecured IoT deviceswill cause a breach in theirorganization
80%say such a breach would becatastrophic
Source: Ponemon Institute, 2018
TRUST
MANAGEMENT ACCOUNTING
Understand the changing landscape and impact• Future of Finance research
– 4 thought leadership papers• Improving government performance
Move from cost center to value driver• Connecting value generation for the long-term• Business model concepts
Build trust in business• Managing the Trust P&L: A toolkit for boards• Implementing sustainability development goals• Integrated reporting
cgma.org
TALENT
Growing skills demand
By 2022, everyone will need an extra
101 DAYS OF LEARNING
Source: World Economic Forum Future of Jobs, 2018
1 Analytical thinking and innovation
2 Active learning and learning strategies
3 Creativity, originality and initiative
4 Technology design and programming
5 Critical thinking and analysis
6 Complex problem-solving
7 Leadership and social influence
8 Emotional intelligence
9 Reasoning, problem-solving and ideation
10 Systems analysis and evaluation
Learn. Technical skills
Business skills
Unlearn. Digital skills and mindset
Relearn. Leadership skills
People skills
Ethics, integrity and professionalism
TALENT
Human Intelligence series
2.8 million+video views since October 2017
Go beyond disruption+ series
379,000+video views since July 2018
10,500podcast downloads since June 2018
aicpa-cima.com/disruption
TALENT
MAKE THE MOST OF YOUR PEOPLE
Embrace diversity and inclusion• CEO Action for Diversity• Recruitment and Retention toolkit• D&I Communications toolkit• Women’s Global Leadership Summit
Mentor … and be mentored• Online mentoring program
aicpa.org/diversity
TALENT
CPA PIPELINE
Attraction• Honors program• Dual Student Recruitment program• CPA Academic Champions pilot program• Firm CPA Culture Toolkit
Influence• New Accounting Accreditation Practitioner Engagement Program
– Prepares CPAs to serve in a consultative role on accreditation peer review teams
Uniform CPA Exam
Accountingand Financerated top 10 college degrees with best job prospects
Source: CareerCast
7yr CAGR: 10.4%
Other client service professionals
76K
CPAs 7yr CAGR: 4.9%
TALENT
TALENT INCLUSION STRATEGY: MAINTAINING A CPA CULTURE
Top 100 CPA firms 300K
262K
250K
200K
150K
100K
50K
0K2011 2012 2013 2014 2015 2016 2017 2018
Source: Accounting Today Top 100 Accounting Firm Survey 2018; AICPA CAGR=Compound Annual Growth Rate
# of
Pro
fess
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nd
F O R G I N G T H E
PAT H
FORGING THE PATH
REPUTATION & AWARENESS OF CPA
5.5 billionreached worldwide throughmedia outreach
41 millionbusiness owners exposed toCPAs through CPApowered
1.2 millionconsumers reached throughfinancial literacy efforts
FORGING THE PATH
ADVOCACY
Tax• Section 199A• Meals and entertainment• IRS service• Tax technicals / Extenders / Reform 2.0• IRS transcript process changes
Disaster relief• Fairness• Certainty• Consistency
FORGING THE PATH
COMPREHENSIVE DEFINITIONOF ATTEST WA
MT ND
ORID
SDWY
NENV
UT
CA COKS
MN
WI NY
MI
IAPA
IL IN OH
WVMO VA
KYNC
TN
ME
MA
CT
DE NJ
AZ NM OK AR SC
MS AL GA
TX LA
HI FL
Currently have Active legislation Do not have
NH
MD
USVI
P
GUCNMI
DC
R
VT
FORGING THE PATH
STATES WITH FIRM MOBILITY
WA
MT ND
ORID
SDWY
NENV
UTCA CO
KS
MN
WI NY
MI
IAPA
IL IN OH
WVMO VA
KYNC
TN
ME
MA
CT
DE NJ
AZ NMOK AR SC
MS AL GA
TX LA
HI FL
Currently have Active legislation Do not have
NH
MD
USVI
P
GUCNMI
R
VT
DC
TRANSFORMING
OUR ORGANIZATIONValue Growth Innovation Capabilities Relevancy
Reimagining how, where and what services we provide to support the profession and members – today and tomorrow.
FORGING THE PATH
ENHANCING MEMBER EXPERIENCE
More intuitive, personalized web site
Facebook Messenger chatbot
Alexa flash briefing
GO BEYOND