The Relationship Between the CPA

Firm Administrator & State CPA Societies or Everything you wanted to

know about CPA-SEA & State CPA Societies

Tom Hood, CPA.CITP – Past-

President CPA – SEA

CPA State Executives Association

But were afraid to ask

Being in business today feels like being in permanent whitewater

2

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 resources to ride these waves of change

Keeping up with the CPA Profession

CPA-SEA is the network – that connects you through your state

CPA Society

CPA-SEA Our Purpose

“to assist our members to achieve operational excellence in the management of their organizations and provide a forum for networking & communication to enable members to choose informed courses of action on professional issues facing CPAs”

Our Values: Leadership Integrity Collaboration Exploration

CPA-SEA Leadership

Betsy Adrian - MN Kathy Anderson - FL Rich Jones - WA Tom Hood – MD Erin Hardwick - SC

Dennis Tomorsky - WI Loretta Doon - CA Deb Riley - VT Jeanine Birmingham –

AL Jane Egan - MT

Making It Real

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What the world would miss if we were gone? • We keep the CPA Profession up with the

rapidly changing environment • We are bridge builders – taking care of

the CPA Profession’s infrastructure • We are the leadership development

pipeline for the CPA Profession • We protect the CPA reputation & image • We are the connectors of the Profession

– connecting to key resources • We mobilize the Profession to do the

things you cannot do alone!

Mega-trends 1. Regulations &

Standards 2. Globalization 3. Workforce 4. Technology

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

Top Ten Issues for MFG 1. Regulatory/Legislative (56) 2. Private Company Leadership (47) 3. Capital Markets Awareness / Recognition (34) 4. Rethinking Business Model (25) 5. Protect Audit/CPA Franchise (20) 6. Risk Management (Audit efficiencies) (20) 7. Leadership Development / Succession 

Planning (19) 8. Global / International (Clients / IFRS / 

Branding) (17) 9. Leveraging Technology & Social Media (17) 10. MFG Issues specific forums / focus groups (8) 

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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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American Institute of CPAs

CPA Firms: Most Profitable Small Business <$10 million

CPA Firms ranked number one by Forbes

Surveyed 300,000

Outrank: • Chiropractors, Dentists, Optometrists • Sales Financing • Insurance Agencies and Brokerages • Physicians, General/Family Practitioners • Consumer Lending • Diagnostic Imaging Centers

Source: Forbes 16

They have you in their sights!

Seven Keys to Success in CPA Firm Management

1. Leadership 2. Technology 3. Learning Organization 4. Marketing and Business Development 5. A Great Place to Work 6. Client Service and Satisfaction 7. Strategy Execution

So what? Top 10 Things You Need to Know about State CPA Societies 1. Maintain CPA Infrastructure – Legislative &

Regulatory 2. Support the Highest Standards of Professionalism

– Peer Review & Ethics 3. Build and Maintain the CPA Pipeline – Students –

Young Professionals 4. Leadership Experience & Training 5. Protect & Promote the CPA Image & Reputation 6. Serve the public – Financial Literacy 7. Connect you to resources 8. Training & Learning – Technical & Soft Skills 9. Developed a Vision for the Future 10.Creating a Learning & Performance Management

System for CPAs

Meet Bill… Managing Partner • Bill’s firm files tax returns in 9 states + Maryland • Last year he would have required additional state licenses in all states (except OH, VA, MO, WI) • He would have had to register all of his tax CPAs and staff as a tax advisor (est $250 apiece) • He would have to report to two state boards with different CPE requirements • He would have had to charge & collect sales taxes on his accounting & tax services •He would be subject to two new federal agencies – FTC and the new CFPA

What would this cost you?

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

OR

Them

State CPA Statutes

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

American Institute of CPAs

Financial Regulatory Reform

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American Institute of CPAs

CPA Mobility Legislation - 2010

TX

WA

OR

CA

NV

ID

MT ND

SD WY

UT

CO

AZ NM

HI

OK

KS

NE

MN

IA

MO

AR

LA

MS AL *GA

FL

WI

IL

MI

IN

KY

TN

SC

NC

VA

OH

NY

ME

CT RI

*MA

AK

WV NJ DE

DC

MD

*PA

CPA Mobility Enacted 46

CPA Mobility Enacted Only for Other Mobility States – GA, PA, MA

*

In Process

Awaiting Governor Signature - 1

NH

CPA Mobility Legislation Pending - 2

VT

PR

GU

U.S. VIRGIN ISLANDS

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2. Maintain the Highest Professional Standards – Peer Review & Ethics - Your firm license depends on it

# 3 Promoting the CPA Career – Maryland example

Tomorrows CPA.org

New/Young Professionals

Network MACPA

Most state societies have similar programs to onboard students into the Profession

Biggest Issue Facing NYPNs • Bridging the Gap between college & real world • Under-Developed Skill Sets

– Leadership & Communication – Time Management & Organization – Analytical Skills – Technical Skills

• Work-Life Balance • Limited Networking Opportunities • Intimidation • CPA Exam • Lack of a Voice in Profession

# 4 Leadership Pipeline

Ernie Almonte – AICPA Past-Chair came from Rhode Island as past president – most AICPA Chairs, Board members, and Council members had their start in State CPA Societies

Meet the New Young Professionals Remember when you were ‘made’ to be a member of your State Society & AICPA?

According to the William E. Smith study of Association value: Benefits to the professionals and their employers include higher morale, increased employer loyalty, networking, professional development, leadership experience, professional community and big-picture thinking.

# 5 Protecting the CPA Image & Reputation • Remember Enron & WorldCom? Public Relations and Image protection are

both a major focus and great example of State CPA Societies and the AICPA working together for the benefit of the entire CPA Profession

# 6 Financial Literacy

www.feedthepig.org www.360financialliteracy.org

# 7 Connectors to Resources

Courtesy of the Business Learning Institute © 2000

Critical Turning

Point

# 8 Training & Learning

# 9 Developed a Vision for the Future Another example of the power of the AICPA & State CPA Societies working together – the CPA Vision identified these critical competencies for 2011

• Communication & Leadership

• Strategic & Critical Thinking

• Focus on the Customer, Client, and Market

• Interpretation of Converging Information

• Technologically adept

American Institute of CPAs

# 10 New Learning Management System (LMS)

Competency Integrated Learning

Curriculums Developed Around Individual

Career Paths

Compliance Integrated

CPE Tracking Linked to

CPE Requirements

Administration

Recordkeeping Course Search

Single Sign-On

Web Delivery

Content Library AICPA, State CPA Societies, 3rd

Parties

CPA2Biz Web-Based Learning

Management System

AICPA Branded Learning Center

Firm or Company Branded Learning Center

State Society Branded Learning Center

Tom Hood, CPA.CITP CEO

Maryland Association of CPAs Business Learning Institute

(443) 632-2301 E-mail tom@macpa.org

Betsy Adrian President

Minnesota Society of CPAs

(952) 831-2707 E-mail badrian@mncpa.org