MACPA Fall 2014 - Professional Issues Update
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Transcript of MACPA Fall 2014 - Professional Issues Update
Format: Town Hall
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1 Lookout Post
2 Laws, Regulations,
& Standards
4 Protect
5 Achieve
3 Connect
1 Lookout Post
2 Laws, Regulations,
& Standards
4 Protect
5 Achieve
3 Connect
Lookout Post
Trends in the Profession
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
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
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
1.a.ii.1
Leadership
Leaders are positive, flexible and future-minded, self-aware, and attuned to the changing context around them. – Tom Hood & Gretchen Pisano
Learning
Learning
Technology
Technology
Work is not a place, it is what you do. And… What you do while working
is fundamentally different.
Workplace
Workplace
Workplace
Workplace
Workplace
Generations
Gen X
So what does this all mean for CPAs?
What Got You Here, Won’t Get You There.
What does this mean for Small Practitioners?
"Increasing the proactive consultative approach to business service and technology information is one of the most important factors in improving a firm’s reputation and the strength of its relationships.” - Doug Sleeter
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.
New skills/services1. Plan A – know your fundamentals 2. Strategy & Business Experience as new baseline 3. Career plan for next big thing: insight and analytics 4. Get risk experience under the belt 5. Become a deal maker 6. Get closer to stakeholders and customer focus 7. Focus on management skills that matter
1. Leadership 2. Communication 3. Strategic thinking 4. Change management
8. Prepare for regulation and broader reporting 9. Get connected 10.Expand your footprint (go global)
What does this mean for CFOs?
Maryland Public Company Collaboration
• Learning & Talent Development • Global Structure of Finance Function • Managing Risk & Innovation • Insight to Action
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 Firms?
What does this mean for Young Professionals?
What’s Keeping Young CPAs Up at Night?
!1. Not enough time 2. Being reactive vs. proactive 3. Talent development 4. Keeping up 5. Growth (and opportunity) 6. Doing more with less 7. Information overload
http://cpa.tc/54s
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?
1. Power of Vision, Purpose & Alignment 2. People - Strengths & Positivity (ROP) 3. Collaboration & Engagement 4. Learning & Development – L>C2 5. Technology (RONI)
Five Ways to Thrive in the Shift Change
Lookout Post
1 Lookout Post
2 Laws, Regulations,
& Standards
4 Protect
5 Achieve
3 Connect
Laws, Regulations, & Standards
Federal Laws & Regulations
DOL Pension Audits
Cash Basis Income Tax
ACA - Affordable Care Act
IRS Regulations for Tax Preparers, CPAs Suing the IRS
Wynne Case in SCOTUS
Workforce Mobility
Data Act
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
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
2 Laws, Regulations,
& Standards
4 Protect
5 Achieve
3 Connect
Connect
Connecting CPAs to our profession, each other, and
the world at large.
Connecting to Our Member Segments
Student Group Town Hall
NYPN
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.
Connect
1 Lookout Post
2 Laws, Regulations,
& Standards
4 Protect
5 Achieve
3 Connect
Protect
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
Federal Laws & Regulations
State Laws
Passage of MD Mandatory Peer Review Legislation
State Board of Public Accountancy (Licensing Issues)
CPA Day in Annapolis - 1/29/15
New CPA Swearing In 11/10/14
Results“MACPA has one of the most effective legislative advocacy programs in
the nation.” - Joe Petito, PWC Representative for The Big Four Accountants Coalition
Offense !
• Separate funding for the State Board 2006 - HB 103
• Experience requirement to make Maryland CPAs compatible with UAA (Uniform Accountancy Act) 2001 -MD COMAR 09.24.03.1
• Ethics requirement for CPE 2006 -MD COMAR 09.24.02.02 Prevent SOX Cascade
• Mandatory peer review and practice quality 2005 – HB 1223
• Exemption for CPAs from Maryland (and federal) tax preparer regulation 2008 - SB 817
• Practice mobility 2008 - HB 1296 • Expanding acceptable CPE methods 2009 -
HB 69 • 120/150 CPA exam legislation 2011 - SB 287 • Restricted audits, reviews, and compilations to
CPAs and added safe harbor for compilations 2011 - HB 328
• State Board of Public Accountancy reauthorization 2013 - SB 238
Defense !
• Sales tax on accounting and tax services (defeated several times) 1997 - HB 580 ,2001 HB 1337, 2004 HB 1364, 2007 - HB 448 , 2012 HB 1051
• Maryland corporate accountability (SOX and 404 for private companies and non-profits) 2003 – SB 560
• Debt counseling registration by CPAs 2011 - SB 741
• Maryland Tax Preparers 2007 - HB 998 • Comparative fault (several times) 1998 SB
618 , 2000 - SB 779, 2001 SB 483 , 2007 - HB 110
• Elimination of audit requirements for Maryland cemeteries 2011 – SB 352
• AG opinion allowing CPAs to include Social Security numbers on documents for tax services – 8/30/2011
• Got Exemption from MSP Private Investigator Registration
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
“...not many members of the Maryland legislature likely had had dealings with accountants or had
familiarity with what they did.” - an appeal to members from a 1900 meeting of MACPA
Still true today
We need you!1.100% Membership Support for
Grassroots Advocacy 2. Legislative Sponsorship (lobbying and
event support) 3. Support our PAC ($4,000 per firm $350
per partner) 4. Attendance at key events:
A. New CPA / Swearing-In - November 10th BWI Hilton B. CPA day in Annapolis - January 29, 2015
Numbers Count!
Protect
1 Lookout Post
2 Laws, Regulations,
& Standards
4 Protect
5 Achieve
3 Connect
Achieve
“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
Welcome to Gen Flux
“…where the number one skill is the ability to acquire new skills.”
Rita McGrath
Daniel Burrus May 4, 2015 BWI Hilton
CGMA Competency Framework
CGMA Follows the Bounce!
Changes in CPE Programming
MACPA Upcoming Events
Innovation Summit 2015
June 23, 2015
Leadership Academy June 3-5, 2015
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
Achieve
Connect Protect Achieve
Lighting the Way for the Shift Change
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
Senator Feldman said
Maryland is the best state in the nation to have
your CPA license.
“Tom Hood makes every CPA kinda wish they were licensed in
Maryland.” –
Greg Kyte, CPA, Utah and Accounting Today
Top 100 Influencer
Why CPAs?
Thank You for Coming