Welcome Welcome

MACPA 2010 Business & Industry Conference

Professional Issues Update

MACPA 2010 Business & Industry Conference

Professional Issues Update

Presented by:  Tom Hood, CPA.CITP 

CEO Maryland Association of CPAs Business Learning Institute 

“A pioneer in using social media and Web 2.0 technologies in accounting, Hood (and his team at MACPA) has tapped his expertise to roll out one of the most extensive sets of resources in the country for helping CPAs handle the recession.” - Bill Carlino, Editor Accounting Today Magazine

Why we are here? Why we are here?

C P A

What is the # 1 reason leaders (and their organizations) fail?

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What is different? 

Being in business today feels like being in permanent whitewater

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You feel overwhelmed by the rapid and turbulent pace of change and uncertainties in business today

Photo: Pratt’s surfing page

You need new skills and new approaches to ride these waves of change

Five Qualities of Extraordinary Leaders 1. Sight - Ability to see emerging

patterns and shift perspective when necessary

2. Insight - Ability to learn faster than the rate of change in your industry

3. Create - Ability to think strategically and critically to gain insights that create new opportunities

4. Communicate - Ability to collaborate inside and outside your organization and to build and sustain social networks of people engaged in the work

5. Inspire – Ability to mobilize support and engage others to join you in ACTION

Sight  Insight  Create  Communicate  Inspire! 

Trends & Issues 

• The economy • The mega‐trends 

– Globalization – Workforce & Demographics – Technology 

• The Profession  

The economy is still uncertain?

Source: Banham, R. (2010 Mar 1). The shape of things to come. CFO Magazine. 

Economists offer a wide range of predictions...

The fact of the matter is, this is not a normal downturn, this is a …fundamental re-SET!

- Steve Ballmer – CEO Microsoft

Globalization

5 Forces of Globalization

1. Growth of consumers in emerging economies 2. Technologies that empower consumers & 

communities 3. Increase in labor productivity in developed markets 4. Shift of economic activity between and within 

regions 5. Increasingly global markets for labor & talent 

 

It is not either global or local, it is AND…

Glocal

Workforce / Pipeline

Bright spot?

AICPA - Accounting Doctoral Scholars

• $16.8 million contributed • 70 firms & 41 state societies • 39 universities • 99 complete applications • 60 selected for conference • 30 selected as ADS Scholars 

 

Bottom Line: How to keep your star talent • Engage your top performers • Coach tomorrow’s leaders • Manage your Millennials

Think A M P • Autonomy • Mastery • Purpose

Technology

• Information Security Management

• Privacy Management • Secure Data File Storage,

Transmission and Exchange

• Business Process Improvement / Work Flow

• Mobile & Remote Computing

• Training & Competency • Identity & Access

Management • Improved Application &

Integration • Document, Forms, Content

& Knowledge Management • Electronic Data Retention

Strategy • Cloud computing

The SEC Mandate

By 2010, Millenials/Gen Y-ers will outnumber Baby Boomers.

Technology & Web 2.0

Here are five major benefits that The Economist report says that social media has created: 

1. Trusted online venues where real people can meet up using their real identities.

2. New ways for firms and organizations to reach their customers and those who influence them.

3. Reduced friction in labor markets by allowing employers and prospective employees to find each other and connect.

4. Faster information flow and communication inside companies and organizations.

5. A "free and immensely powerful set of communication and collaboration tools to everyone on Earth who has access to a broadband internet connection."

CPA Profession

First wave – the public co consolidators

Second wave – small practices unite

Third wave – super-regionals, national, global

The urge to merge?

Top 10 Issues Facing CPAs 1. Economic Outlook  2. Tax  3. Business Operations  4. Implementation and Execution 

of Plans  5. New Business Development  6. Personal/Professional 

Development  7. Management and Leadership  8. Financial Regulatory Reform  9. Access to Financing and Credit  10 New Accounting Standards, 

IFRS Source: CPA Trendlines for AICPA Feb, 2010

PCPS/TSCPA MAP Survey 2009 Top Five Issues Facing Firms 21+ 

1. Client Retention 2. Marketing / Practice Growth 3. Tax Law Changes & Complexity 4. Keeping up with Regulations & 

Standards 5. Retaining Qualified Staff / 

Work/Life Balance 

http://pcps.aicpa.org/

Mark Koziel, CPA AICPA PCPS

For larger firms add Partner Accountability & Succession Planning

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You have their attention!

1. Economic Recovery and the U.S. Fiscal Outlook 2. Health‐Care Reform 3. Employee Benefits 4. Financial Regulatory Reform 5. Global Convergence of U.S. GAAP and IFRS 6. Financial Instruments 7. Financial Statement Regulation 8. Revenue Recognition 9. Business Taxation 10. *XBRL 

 

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Top Ten Issues for FEI 

Business & Industry Responsibilities AICPA Core – 1/3 of B&I Responsibilities

Financial accounting Financial reporting Audit Tax

2/3 Additional

1/3 Core

AICPA non-Core – 2/3 of B&I Responsibilities

Strategic planning Sustainability Budgeting Financial operations management Risk management & internal controls Internal audit Governance HR & benefits IT, legal, purchasing

Top 10 Opportunities for CPAs 1.Valuation 2.Forensics and fraud 3.Governmental –

State/local/NFP 4. International

(IFRS and tax) 5.Health care

6. Green / sustainability 7. XBRL 8. Tax planning 9. Enterprise Risk Management 10. Renewable energy

You will learn to become a navigator

of change using BLI's I2A - Insight to

Action strategic thinking system

Sight  Insight  Create  Communicate  Inspire! 

Sustainability

www.gogreenplus.org

Financial Literacy

http://www.360financialliteracy.org/ http://www.feedthepig.org

State CPA Statutes

police power of the states to protect their citizens vs commerce clause

Where do major changes come from? Us – MACPA & AICPA

OR

Them

An example of “us” - The 120/150 Hour CPA Exam Bill (HB 1137)

Changes the requirements to sit for the CPA exam to allow you to sit for the Exam upon completion of 120 hours (and the requirements of section 1 & 3) and get licensed upon completion of the final 30 credit hours (and the requirements in group 2)

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Recent Leg / Reg Changes you need to know!

New Mobility Law Maryland Individual Tax Preparer Act New Corporate Reporting Requirements Peer Review Requirement – October 1st New CPA Exam Requirements New CPE regulations Mandatory e-file New Non-Profit Audit Requirements > $500,000 MD Independent Contractor Legislation

CPA Day in Annapolis January 19, 2011

MACPA 2011 Agenda

• Pass 120/150 legislation • Stop Sales Tax on

Accounting Services • Exempt CPAs from Debt

Counseling Bill • Stop Trial Lawyers

attempts at Tort Liberalization – Comparative Fault

Standards Changes • AS 5 - PCAOB • IFRS – SEC International gets legs (again) • Fair Value Accounting • XBRL – SEC mandatory • Codification Project – FASB • Clarity Project – ASB

– Convergence with international • Reliability Project (comps & reviews) • DOL 403 (b) Plans • Internal Control – COSO • Fin 48 effective 2009 • Form 990 Changes • Fraud & Forensic SAS 99 • FASB – IASB Convergence Project

SEC Roadmap released Early adopters can file using

IFRS 2010

2011 Official SEC

decision point

Large Accelerated

Filers 2014

2015 Accelerated

filers – second wave

Small-caps 2016

Top 5 Competencies needed to ride the waves of change

• Communication & Leadership

• Strategic & Critical Thinking • Focus on the Customer,

Client, and Market • Interpretation of Converging

Information • Technologically adept

How to increase your odds of roaring out of the recession from HBR

1. Focus on operational efficiency (smart spending and targeted headcount reduction for efficiency versus across-the-board headcount reductions).

2. Investment in developing new markets (leveraging your product / service mix into expanded markets -- geographic, new segments or niches).

3. Investments in enlarging the asset base. (In professional services, that is training and development and strategic staffing for new opportunities.) I call this placing careful bets on the future.

http://www.cpasuccess.com/2010/03/how-to-beat-the-odds-and-roar-out-of-the-recession.html

Are you indispensable? Imagine an organization with an employee who can accurately see the truth, understand the situation, and understand the potential outcomes of various decisions. And now imagine that this person is also able to make something happen. This is our leader, our marketer, our linchpin!

Tom Hood, CPA.CITP CEO 

Maryland Association of CPAs Business Learning Institute 

(443) 632‐2301 E‐mail tom@macpa.org 

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

 

MACPA resources • CPA Success, our daily blog www.CPASuccess.com 

•  CPA Spotlight, our weekly podcast www.macpa.org/podcast 

•  Other MACPA blogs: 

• www.CPALegislativeInsider.com 

• www.NewCPAs.com 

• www.Bizlearningblog.com 

• CPA Learning 2, a Web 2.0 playground by CPAs for CPAs www.CPALearning2.com 

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Professional Issues UpdateSpring, 2010 

 Tom Hood, CPA.CITP CEO & Executive Director 

Maryland Association of CPAs http://www.MACPA.org 

tom@macpa.org  

• Follow me on:  Twitter: http://www.Twitter.com/tomhood  LinkedIn: http://www.linkedin.com/in/tomhood  Facebook: http://www.facebook.com/thoodcpa  Plaxo: http://tomhood.myplaxo.com  Slideshare: http://www.slideshare.net/thoodcpa  Youtube: http://www.youtube.com/thoodcpa  Second Life avatar name: Rocky Maddaloni