Jason Deshayes , CPA Robert F. Butler CPA, P.C.

AICPA/PCPS Update: Top Issues for Firms

Jason Deshayes, CPARobert F. Butler CPA, P.C.

Private Companies Practice Section

What issues keep practitioners up at night? What issues are shaping the future of the profession? What are the priorities? What are the opportunities? What are the solutions to the challenges?

Practical solutions to help your practice RUN SMOOTHER.

PCPS: Understanding the Issues


2009 PCPS CPA Firm Top Issues


2011 PCPS CPA Firm Top Issues


Keeping up with tax laws and accounting standards, retention & growth, fee pressure and seasonality top the 2011 lists

Slight shift in focus from client retention to client acquisition between 2009 and 2011

Human capital no longer the top issue — but still an issue — which is a temporary shift

Firms with five professionals or fewer are less focused on succession, yet the most vulnerable

PCPS CPA Firm Top Issues Bottom Line


Keeping Up With A&A Standards


PCPS Technical Issues Committee (TIC) Alert The TIC monitors technical developments that could significantly

affect private companies and the firms that serve them When standards are written, the TIC submits informed comments

and recommendations in support of small-to-medium-size firms Stay abreast of TIC activities

Keeping Up With A&A Standards — TIC Alert


Keeping Up With A&A Standards

Technical Toolkits Clarified Auditing Standards

(effective December 15, 2012!)

SSARS 19 Toolkit


Keeping Up With A&A Standards — Clarified Auditing Standards Toolkit Available at aicpa.org/pcps/castoolkit


Keeping Up With A&A Standards — PEEC/ARSC Changes to Compilation Standards Changes definition of

a compilation to “read and report”

Changes preparation of financial statements to a non-attest service


Keeping Up With A&A Standards — Changes to PEEC/ARSC Compilation Standards

Resources available at: Interest Areas - Financial Reporting Center - Compilation Services


Keeping Up With A&A Standards — New Mandatory Firm Rotation Resources

Talking points developed for practitioners to use in discussing mandatory firm rotation concerns

aicpa.org/pcps/mfr


Keeping Up With A&A Standards — Private Company Financial Reporting

Private Company Council Financial Reporting

Framework for SMEs Privately held small and

medium enterprises Less complicated, less costly U.S. GAAP financial

statements not needed FAF supports as “important

and complementary” Exposure Draft — October

2012aicpa.org/FRF-SMEs


Keeping Up With Changes and Complexity of Tax Laws



PCPS Health Care Reform Toolkit Strategy Checklist Client brochures (Business and Individual) Client PowerPoint template All customizable



Fiscal Cliff — uncertainty in unresolved tax issues aicpa.org/fiscalcliff

AICPA’s Tax Section

Total Tax Insightstotaltaxinsights.org


Client Acquisition and Retention


Client Acquisition and RetentionChanging Landscape

BeforeTransactional

TodayAdvisory

$ $$


Client Acquisition and Retention

Move Up the Client Value Pyramid

Client Value Pyramid

Controllership ServicesMonthly close, financial statements, cash flow analysis

Virtual CFOBudget, business planning, business modeling, etc..

Transactional ServicesTax, write up, bookkeeping, A/P, payroll, etc..

More CPAs are becoming outsourced CFOs for their business clients


Client Acquisition and RetentionNew Service Opportunities

Attestation engagements — Statements of Control (SOC) reports

Consulting & advisory — Trusted Business AdvisorSM

State and local tax (SALT) compliance Business process outsourcing — cloud computing Forensic Services Financial Services


Client Acquisition and RetentionTrusted Business Advisor (TBA) 2.0 Workshopand PCPS TBA Consulting Toolbox

Make knowledgeable and confident presentations to clients

Demonstrate and price unique value Ask the right questions to understand

client concerns and priorities Use core skills and evolve as clients’

strategic partner Build strong relationships and earn

clients’ trust


Client Acquisition and RetentionYOU are the Value Online Video Workshop

Differentiate yourself from other CPAs so you can confidently present yourself to clients in a unique way.


Client Acquisition and RetentionClient Advisory Board Toolkit

Gain perspective and hear directly from clients about: Client

expectations How the firm can

improve How the firm can

cross-sell and add to its service offerings


Client Acquisition and RetentionHow CPAs Grow Their Practice

Relationship — stronger bond with clients Know your value and how to articulate it Manage seasonal lows and revenue generation Identify new services mix Plan to make money


Client Acquisition and RetentionPCPS Social Media Toolkit

Toolkit includes:

Action Plan

Guidance — what, why and how

Sample policy, with policy writing tips

Guides for LinkedIn, Twitter and Facebook

Guide for blogging


Client Acquisition and RetentionAICPA Tax Practitioner’s Toolkit – Communicate Your Value

Preparing Your Firm to Understand and Articulate the Value of Your Tax Services Implementation checklist CPAs vs. unlicensed tax preparers PowerPoint template

Engaging With Clients to Stay Top of Mind Customizable client-facing brochures and PowerPoints Tax blurbs for websites or newsletters

Promoting Your Firm to Attract New Clients Print ads, Google AdWords


Fee Pressure & Pricing of Services


Demonstrate and communicate value Reinvent the engagement

Step down service Push work back to client

Use retainers More and more firms are successful with retainers

Straight talk from the start Consider specific fee language in your engagement letter “The fee will not exceed $XXX” “This service will cost $XXX at a minimum”

Evaluate your clients … fire “D” clients Utilize the Client Evaluation Tool

Bill timely and demonstrate the value delivered



Human Capital


Partner Accountability and Unity

• Partner Accountability and Unity Guide

• Leadership Attributes Assessment

• Governance grid sample

Finding Qualified Staff

• Team Recruitment Action Plan

• Sample Recruitment Advertisement

• Firm Needs Assessment

• Interview questions• Value proposition for

joining firm

Retaining Qualified Staff

• Firm Competency Model

• Exit interview template

• New hire checklists and agendas

• Mentoring guide• Performance

management templates

Tools for Human Capital Concerns:

Human CapitalPCPS Human Capital Resource Center


Highlighted tool – CPA Firm Competency Model



Highlighted resource – PCPS Human Capital Center Toolbox Series



Succession Planning


2012 PCPS Succession Survey

54% without written plan

Leadership development tops challenges

44% of firms in M&A talks

Few managing partners have ability to hold partners accountable

Multi-Owner Firms 94% without

Practice Cont. Agreement

39% intend to merge or sell

Half expect to sell $1 for $1 of billings, actual is likely much less

Sole Owners

www.aicpa.org/pcps


2012 PCPS Succession Survey (Multi-Owner Firms)

PCPS Succession Survey


2012 PCPS Succession Survey (Sole Owners)



Recently Updated!



• 3-year written plan• Identify exit strategies• Practice continuation agreement• Evaluate rates/clients• Leverage technology Sole Owners

• 3-year written plan• Improve operating policies and procedures• Develop people• Strong governance with robust compensation framework• Define rules for retiring partners

Multi-owner Firms

Succession Planning — Best Practices


Firms Today


Covers key practice management issues and enables firms to: Benchmark management policies and

financial results Gain strategic insights and guidance

The National MAP Survey’s rich history makes it the leading benchmarking survey for CPA firms. See how your firm measures up using targeted and relevant practice management benchmarks including billing rates, chargeability ratios, compensation and other key performance indicators.

aicpa.org/pcps/MAP2012

Firms Today2012 PCPS/TSCPA National MAP Survey


Firms are recovering Not quite back to 2008 levels, but better than 2010

A majority of firms experienced year-over-year revenue growth in 2012

Partner compensation is on the rise after the belt-tightening of the downturn

Indications that larger firms are adding new partners for retention and in anticipation of retirements

Survey Highlights



What’s Next?

Download the results at aicpa.org/pcps/maps2012

Use the comparative data to pinpoint differences that are of greatest concern to your practice

Compare your firm’s figures What stands out? What areas need focus for improvement?

Implement changes Align with strategic plan



Firms TodayWhat We are Seeing

Fee pressure

Clients uncertain — sitting on cash — stuck in neutral

Staff turnover has returned — primarily to industry

Profitability — flat or up a little

Merger activity increasing — horizontal


Firms TodayWhat We are Seeing

Signs of recovery in certain areas and growth in some industries

Firm rotation — issue with NFPs and government entities

Identify theft for IRS refunds is epidemic

Technology — cloud, security, privacy

What are you experiencing?


Large FirmNetworking Group

EmergingPartner Forum

Human CapitalNetworking Group

TBA Alumni

PCPS Communities

Medium FirmNetworking Group

Small FirmNetworking Group

Sole Practitioner’sVirtual Network

Women in theProfession


aicpa.org/PCPS

[email protected]

800.CPA.FIRM

[email protected]

[email protected]

Thank You!Please Contact Us!

http://www.aicpa.org/pcps

mailto:[email protected]




Questions?

Jason Deshayes , CPA Robert F. Butler CPA, P.C.

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