MACPA - BLI Professional Issues Update - Spring 2015 Business & Industry Edition

Business & Industry Edition

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3 Membership Organization

1 Lookout Post

2 Laws, Regulations,

& Standards

4 L > C2


& Standards


4 L > C2

1 Lookout Post

Lookout Post

Trends in the Profession

What is causing change today?

Command & ControlEpisodic & PassiveSystems of RecordA place you go

Connect & Collaborate

JIT & Participative

Systems o

f Engagement

What you do

HierarchyTransactional

On-Premise – CustomizedRigid, Cube farmsGeneration Gap

Network

Transformational

SMAC – Social Mobile Analytics C

loud

Open, Collaborative, Flexible

Generation Lap



JIT & Participative

Systems o

f Engagement

What you do



Network

Transformational


loud


Generation Lap

Incumbent practices,

resources and

institutions are in

decline

New business

models, practic

es and

technologies are

emerging

The challenge & opportunity is to make the shift from the first curve to the second curve at the right time and with the right strategy

Leadership

Learning

Technology

Workplace

Generations

Leadership

Learning

Learning

1.Social 2.Mobile/Nano 3.Cloud 4.Collaborative (MBSN) 5.Competency-based

Technology

Workplace

Generations

Lookout Post Trends by Segment:

Public Practice Corporate - Business & Industry

Young Professionals Students

What does this mean for CPA Firms?

FIRMS WITH 21+ PROFESSIONALS

2013 2011 2009 2007

1 Owner/partner accountability and unity

Owner/partner accountability and unity Retention of current clients Finding qualified staff

2 Bringing in new clients Bringing in new clients Owner/partner accountability and unity Retaining qualified staff

3 Retaining qualified staff Retention of current clients Succession planning Developing new partners

4 Succession planning Fee pressure/pricing of services Bringing in new clients Work/life balance initiatives

5 Finding qualified staff Succession planning Retaining qualified staff

(1) Management of human resources(2) Seasonality/workload compression

PCPS CPA Firm Top Issues

What does this mean for Small Practitioners?

MACPA Member Survey Top Challenges 2014

Sleeter Group Survey 2014

The research: Anticipation is showing up across our Profession.

Maryland Public Company Collaboration

• Learning & Talent Development • Global Structure of Finance Function • Managing Risk & Innovation • Insight to Action

1. Private Companies Dominate 2. Private Companies create wealth & jobs 3. Private Companies invest and drive growth 4. Private Companies are agile & nimble and drive innovation

What does this mean for Young Professionals?

11 Things Young Professionals Want You to Know 1. More collaboration. 2. More transparency. 3. Encourage initiative. 4. Focus on strengths. 5. Expect the unexpected. 6. Take time to save time. 7. Look beyond the billable hour. 8. Engage your team in your vision. 9. Be realistic. 10.Train your staff and expect accountability. 11.Take a financial risk on leadership.

http://cpa.tc/54r

What does this mean for Students?

Top 5 Things They Want: 1. Work-Life Balance 2. Career Growth & Stability 3. Competitive Pay 4. Flexibility 5. Learning & Development

Top

When you’re a part of an established entity, there’s so much incentive to maintain the status quo. A lot of times, the people who are leading are at the end of their careers, so they don’t want to throw everything up and see where it lands. They want to make it someone else’s

problem. But I have seen the shift happening before my eyes, and have at times been frustrated that people weren’t taking advantage of this new platform in a way that would be

effective for the content.

What Got You Here, Won’t Get You There.

So What?

Lookout Post

1 Lookout Post


4 L > C2


& Standards

Laws, Regulations, & Standards

News you’ve got to stay on top of

Federal Laws & Regulations

Workforce Mobility

Cash Basis Income Tax

DOL Pension Audits

ACA - Affordable Care Act

Supreme Court - SCOTUS

ACA and Tax Credits Perez vs Mortgage Bankers FTC vs NC State Board of Dental Examiners Wynne Case - MD out-of-state tax credits SCOTUS Allows federal challenge of CO “Amazon Tax”

Workforce Mobility

Data Act

State Board of Public Accountancy (Licensing Issues)

Current issues with your license

• Employee Benefit Plans Peer Review

• Responding to the Board

• CPE Tracking and Reporting

Financial Accounting Standards

Accounting Standards

Public & Private Companies

Private Companies-‐ Small Business

Public & Private Companies

Private Companies

Private Companies-‐ Small Business

State & Local Gov’t

Federal Gov’t

Financial Reporting

IFRS (IASB)

IFRS-‐SME (IASB)

GAAP (FASB)

GAAP-‐PCC (FASB)

FRF-‐SME (AICPA)

GASB FASAB

Auditing IAASB IAASB PCAOB ASB (AICPA)

ASB (AICPA) ASB (AICPA) GAGAS Yellow Book GAO

GAGAS Yellow Book GAO

Ethics IFAC IFAC PEEC (AICPA)

PEEC (AICPA)

PEEC (AICPA)

PEEC (AICPA)

PEEC (AICPA)

• Rev Rec

Financial Accounting Standards

• Cash Flow

• GASB 67, 68

• Fair Value

Peer Review Standards

New Code of Ethics• Intuitively arranged

• User-friendly online code:

aicpa.org/newcode

• Enforceable rules and principles not

changed

• Minimum substantive changes to

interpretations

• Non-authoritative guidance referenced

• Effective December 15, 2014

• Additional year for Conceptual

Frameworks

Laws, Regulations, & Standards

1 Lookout Post


& Standards

4 L > C2


Membership Organization

Membership Organization How we connect, protect, and achieve.

Connecting CPAs to our profession, each other, and

the world at large.

Connecting to Our Member Segments

Student Group Town Hall

Women to Watch

Town Hall

Committee and Chapter Activity

MACPA Groups

http://cpa.tc/21g

https://twitter.com/macpaCPE

twitter.com/macpaCPE

Sales Tax Resources for MACPA

The MACPA Accountants Resources Center gives you the tools you need to lead your clients through the complexities and dynamic challenges of sales and use tax compliance.

MACPA Legislative and Regulatory Advocacy

What is the #1 Thing MACPA does

for CPAs and CPA Firms that nobody else

does?

Legislative Advocacy

“From then on, they are no longer isolated men, but a power one sees

from afar, whose actions serve as an example; a power that speaks, and to which one listens.” – Alexis de Tocqueville, on the

power of Associations in Democracy in America

3 Levels

2 Objectives1. Offense: Pass Proactive Bills 2. Defense: Stop Bad Bills

1. Federal 2. State 3. State Board of Accountancy

Federal Laws & Regulations

State Laws

Passage of MD Mandatory Peer Review Legislation

State Board of Public Accountancy (Licensing Issues)

Our challenge40% turnover in legislature

Governor Attorney General Secretary of DLLR Key Committees

3 House • Economic Matters • Ways & Means • Judiciary

3 Senate • Education, Health &

Environment • Budget & Tax • Judicial Proceedings

CPA Day in Annapolis - 1/29/15

Our 2015 MD agenda

1. Appeal Bond Reform 2. Expanded definition of attest 3. Build new relationships with legislators

1. Stop Sales Taxes on Services 2. Stop Comparative Fault by Trial Lawyers 3. Monitor 2,500 active bills in MD legislature

Numbers Count!

Defense

Offense

How we do it1. Build and maintain Key Relationships with

legislators and regulators (PAC, meetings and events)

2. Grassroots capabilities through membership - we can target specific legislators by committee and district

3. Financial support of key legislators via our PAC 4. High profile events that increase visibility of

CPA Profession (CPA Day for legislators and Swearing-in for DLLR/State Board)

Your career, forward, faster.

CGMA Competency Framework

MACPA Upcoming Events

Innovation Summit 2015

June 23, 2015

Leadership Academy

Summary of MACPA Today

Lighting the Way for the Shift Change



JIT & Participative

Systems o

f Engagement

What you do



Network

Transformational


loud


Generation Lap

Senator Feldman said

Maryland is the best state in the nation to have

your CPA license.

The Next Chair of the AICPA Kimberly Ellison-Taylor

“Tom Hood and MACPA makes

every CPA kinda wish they were

licensed in Maryland.”

– Greg Kyte, CPA, Utah and Accounting Today

Top 100 Influencer

Learning

1.Social 2.Mobile/Nano 3.Cloud 4.Collaborative (MBSN) 5.Competency-based

Tom’s Favorite Tools

“Use the tools, don’t let the tools use you.”

– Francine McKenna @retheauditors

• Twitter • Linked-In • Blog • Slideshare.net • Evernote • Tweetdeck.com • Hootsuite.com • Zite.com • Kindle

Our Digital Transformation Strategy

1. Digitization & workflow –shifting resources and systems to growth areas

2. Virtualization – Moving IT infrastructure to cloud

3. Transformation to cloud – Increase use of existing systems of engagement

4. Transformation to cloud – New cloud based systems – accounting

5. Transformation to cloud – Move AMS and MACPA website

We identified three major goals for making this shift: 1. Help employees identify and address the challenges and opportunities that have the greatest

impact on the business. 2. Help employees strengthen high-impact connections by enabling them to collaborate easily

with others inside and outside the organization. 3. Amplify the impact of those efforts by building an infrastructure that allows small

improvements to scale easily across the organization.

Membership Organization

1 Lookout Point


& Standards


4 L > C2

“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

92% of CPAs are NOT

Future Ready!Future Ready is the

capacity to be aware, predictive, and adaptive of emerging challenges,

tech innovations, and trends and changes in business, population,

and social environment.

Source: CPA.COM 2014 CPA of the Future Study

How Extraordinary Leaders Double Profits

Competencies – Research & Examples

“The hard stuff is soft and the soft stuff is hard.” – Tom Peters

Interestingly enough, there is one pivotal competency that is most powerful in distinguishing the top

10th percentile from the rest: inspiring and motivating others to

high performance.

Anticipation: The Missing Competency

Strategic Thinking External Awareness

Vision Continuous Learning

Innovation Creativity

Problem Solving Prioritization

Business Acumen Decisiveness

Influencing/Persuading Emotional Intelligence Consensus Building

Collaboration Inspiration

Risk Management

Anticipatory Organization: Finance / Accounting Edition

“Leadership and learning

are indispensable

to each other.”- JFK

Why CPAs?

Thank You for Coming

Tom$Hood,$CPA.CITP$CEO$

Maryland$Associa8on$of$CPAs$Business$Learning$Ins8tute$

(443)[email protected]$

Web$hNp://www.macpa.org$hNp://www.blionline.org$

Blog$hNp://www.cpasuccess.com$$

MACPA - BLI Professional Issues Update - Spring 2015 Business & Industry Edition

Business

Transcript of MACPA - BLI Professional Issues Update - Spring 2015 Business & Industry Edition