MACPA 2013 Spring Professional Issues Update
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17-Sep-2014 -
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Transcript of MACPA 2013 Spring Professional Issues Update
Tom Hood, CPA, CITP, CGMA CEO
MACPA & the Business Learning Institute
MACPA Town Hall & Professional Issues Update for MEMBERS
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Segments of our members
Genera0ons
Tech Tools
Source: WTF What’s the Future of Business by Brian Solis
What I have been thinking about
And this
• Change • Complexity • Compliance • Convergence • Competition
MANAGING THE “C” CHANGE
What happens when CPAs are overwhelmed?
When we need to be doing this?
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#PIU13 #MACPA @tomhood @MACPA
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Message from our Chair
Be like Mike(y)
Insights to Ac0on
“One without the other is either useless or destruc0ve”
http://www.burrus.com
Inattentional blindness
The new “Big Four”
• Standards & Leg/Reg
• Technology • Genera0ons in workplace
• Innova0on
The US Economy Schumpeter's Curve of Crea0ve Destruc0on
Legisla0on & Regula0on
hTp://cpa.tc/1ut
• Federal – Fiscal Cliff
• State • Budget Deficit • Sales Tax on Services • Tort Reform
First the facts about Fiscal Cliff, Sequester and Fed Budget
#CPAsSavetheWorld
Accoun&ng bodies hail G20 emphasis on public sector repor&ng
DATA Act & Financial Industry Transparency Act using XBRL
What's at Stake? The US Government’s Financial Statements and the Country's Fiscal Health
Revenue = $2.4 trillion Expenses = exceeded
revenue by $1.3 trillion
2011 Financial Statements
2011 Financial Statements
Assets= $2.7 trillion
Liabili1es= $17.5 trillion
Accumulated deficit=
$14.8 trillion
U.S. financial statements differ from other organizations Most financial statements show obligations or liabilities on balance sheet US government’s financial statements do not include Social Security and Medicare
• Footnote disclosures • Not reflected as liabilities
Reality of future obligations
These future obligations equal: $46.3 trillion in additional deficit
Plus $14.8 trillion cumulative deficit Total deficit: $61 trillion deficit
$61 trillion is the equivalent of:
Every household in America owing the full cost of two new homes and not getting to live in them
State of Maryland Budget vs Financials
Budget surplus $363 Million vs Financial deficit
$1.2 Billion
2
2011 Financial Statements
-5,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2009 2010 2011
Revenue
Expenses
Deficit
Revenue = $33.5 billion Expenses
exceeded revenue by $1.2 billion
Note: The Financial Statement Deficit is
down from the 2009 highpoint of
$2.9 billion 6
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Net Assets decreased by $7.2 Billion in past 5 years
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Maryland’s unfunded Pension obligations of
$28.5 Billion
Source: 2011 CAFR Footnotes 15 & 16 10
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MACPA State Budget Task Force
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The Future is Bright Students from U of B
Where were you on January 16th?
2014 CPA day – January 15, 2014
Sales Taxes on Services?
#MagnumCPA?
#TaxSimplify
2013 Sine Die
It’s really a numbers game
2,500 188 90 3
#BadBills
State Board of Accountancy
1. Projec0on of status on CPA Board
fund. How it will be monitored to determine when a fee increase is needed? The fund must cover IT improvement costs.
2. Review of peer review process for monitoring fail and 2nd pass with deficiency reports.
3. Review of the exam applica0on process. Determine if processing should be con0nued in-‐house or contracted out to a third party.
#GoodBills • Separate funding for the State Board • Experience requirement to make Maryland CPAs compa0ble with
UAA (Uniform Accountancy Act) • Ethics requirement for CPE • Mandatory peer review and prac0ce quality • Exemp0on for CPAs from Maryland (and federal) tax preparer
regula0on • Prac0ce mobility • AG opinion allowing CPAs to use Social Security numbers for tax
services • 120/150 CPA exam legisla0on • Restricted audits, reviews, and compila0ons to CPAs and added
safe harbor for compila0ons • State Board of Public Accountancy reauthoriza0on
#BADBills
• Sales tax on accoun0ng and tax services (defeated several 0mes)
• Maryland corporate accountability (SOX and 404 for private companies and non-‐profits)
• Debt counseling registra0on by CPAs • Maryland Tax Prepapers • Compara0ve fault (several 0mes) • Elimina0on of audit requirements for Maryland cemeteries
Advocacy – If not you, who?
Standards
• Interna0onal – IASB & IFRS
• FASB & PCC • AICPA & FRF –
SME • ASB – Clarity
(12/15) • GASB Pension • PEEC hTp://cpa.tc/1us
FAF, XBRL and You
GASB Whitepaper
Form 990 Data Transparency
• NFP tax returns are public informa0on • And…they’re not easily searchable (PDFs) • 30% of Form 990s are filed electronically… • Then get printed and scanned and loaded on disks.
• President Obama’s 2014 budget calls for electronic filing of Form 990, and…
• Requires IRS to publish data in a machine readable format (XBRL?)
FASB Industry Taxonomy Project
• Develop industry specific taxonomies • BeTer suited for each industry • Industries par0cipa0ng include: • Insurance • Banking • Brokers and Dealers • Real Estate • NFPs
FASB NFP Taxonomy Project -‐ Par0cipa0ng Organiza0ons
• AICPA • CFA Ins0tute • NACUBO • Thurgood Marshall College Fund • FAF • MACPA
The process…
• Iden0fy elements and concepts unique to non-‐profit accoun0ng that don’t currently exist in the US GAAP Taxonomy.
Such as: • Split-‐interest agreements • Pledges receivable • Temporarily restricted net assets
#CPATechnology
#CloudorBust
Me and Geoffrey Moore
#Connected
From: Systems of Record To: Systems of Engagement
#4Genera0ons
GEN SYMP
"The speed of change makes you uncomfortable on a regular basis," he says. "That's so difficult for people who are paying mortgages, buying cars, trying to give their kids the things they had, to get them through school. You want to feel confident in the last 15 years of your career that arer 25 or 30 years of effort, it's just going to work," he says. "But it isn't so. And I don't think you ever get over the fear of not knowing.” – Doug Gould Ad Exec
Why should you care about Social Media?
“In-‐forming is the individual person's analog to open-‐sourcing, outsourcing, insourcing, supply-‐chaining, and offshoring. Informing is the ability to build and supply your own personal supply chain—a supply chain of informa1on, knowledge, and entertainment. In-‐forming is about self-‐collabora1on—becoming your own self-‐directed and self-‐empowered researcher, editor, and selector of entertainment.
– Thomas Friedman
#SocialCPA
#SocialMediaforCPAs
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MACPA’s Social Media Ma
145,714 views
80,568 views
450 members 4,966 followers
2,049 connections
571 connections
Top 50 Business Blogs - 2011
Top Accounting Blogs – 2009, 2010, 2011,
2012
#SocialAccoun0ng
The conversa0on con0nues…
hTp://cpa.tc/214
Tipping the adop0on curve?
#Accoun0ngInnova0on
Innova0on for CPAs
• Big Four Trends – Social – Mobile – Cloud – Big Data (XBRL)
• Innova0ve Services – Value-‐added CFO – CFO Advisory Services – FRF-‐SME – Assurance on XBRL Tagging – XBRL for research
S-‐Curves & Business Model Innova0on
• ROA! • L>C • CC > EC
Three Rules for Success
1. BeTer before cheaper (it's best to compete on differen0ators other than price);
2. Revenue before cost (priori0ze increasing revenue over reducing costs);
3. There are no other rules.
CGMA – CIMA The global value-‐added financial professional
#CPAVision
Business Events Capture Report Insight Communicate &
Engage Action
• Historical • Compliance • Technical
• Future • Reliance • Leadership
The Information Value Chain • Communica0ng the total picture with clarity and objec0vity,
• Transla0ng complex informa0on into cri0cal knowledge,
• An0cipa0ng and crea0ng opportuni0es, and
• Designing pathways that transform vision into reality.
EBR
Source: WTF What’s the Future of Business by Brian Solis
Remember how we started?
#AdaptorDie #BendAdop0onCurve
• Technology & Caveman • Serendipity • CC > EC • L > C • CPA as Ar0st
The collaboration curve is replacing the experience curve
“The organizations that will become the household names of this century will be renowned for sustained, large-scale, efficient innovation.
The key to that capability is neither company loyalty nor free-agent autonomy but, rather, a strong collaborative community.”
HBR, July-August 2011
#CC>EC
Technology & the Caveman
#MACPAGROUPS
“In a period of rapid change and increasing complexity, the winners are going to be the people who can LEARN faster than the rate of CHANGE and faster than their COMPETITION.”
-‐ Tom Hood, CPA.CITP.CGMA
#CC>EC # 1 Skill is Collaboration # 2 Skill is Communication according to 2012 IBM Global CEO Study
#theBounce
Corporate Learning Matrix
Are you a Mr. T-‐ shaped Professional?
#Connect&Collaborate
#CPAInnovate
MACPA Summit – May 17th, 2013 Mar0n’s West
#Ar0st&CPA
• Lots of ways to mess up!
• Heat is needed to shape the glass
• Long setup 0me for quick finish
• Try, learn and adjust -‐Tim McFadden
Innova0on adop0on = Social Networks
“The degree to which an individual in a social network is connected to other individuals in the network (actor centrality) has been shown to have a major influence on that individual’s adop&on of business innova&ons.” – Research Report by Associa0on of American Medical Colleges
#MDSUMMIT13 Innova0on thru Collabora0on
13 Top Thought Leaders
25 Top technology & Sorware Vendors
Terri Polley, Gail Perry, Teresa MacKintosh, Jennifer Warawa, Donny Shimamoto, Byron Patrick, Clarke Price, Erik Asgeirsson, Tom Hood, Ron Baker, Jody Padar, Joel Sinkin, Reggie Henry and more…
Collabora0on Technologies
Membership
Tom Hood, CPA.CITP CEO Maryland Associa1on of CPAs Business Learning Ins1tute (443) 632-‐2301 E-‐mail [email protected] Web h`p://www.macpa.org Blog h`p://www.cpasuccess.com Blog h`p://www.bizlearningblog.com
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