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MACPAPIU.CNF.IO
Your Learning Journey
Meet the Chair of MACPA Lisa Cines
“I skate to where the puck is going, not to where the puck is.” – Wayne Gretzky
RFTF – Report From the Future
#FutureReady!Is the capacity to be anticipatory (aware, predictive and adaptive) of emerging technology and trends in business, demographics, and the social environment impacting your organization and industry.
Source: CPA.COM Insight into the CPA of the Future Study 2014
92% of CPAs Not #futureready
1. Connect to the Innovators in our profession. 2. Be the lookout post for future trends. 3. Develop training on how to anticipate and
adapt. 4. Engage members in envisioning their future.
How can we make you #futureready?
Connect • Protect • Achieve
Three hard Trends: 1. Regulations & Standards 2. Technology 3. Demographics
&Laws, Regulations, Standards
“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
Peer Review and Audit Quality
2,832 Bills – 26% increase from prior yr. Business-related Bills - 373 116% increase CPA Bills 37 - 50% increase Tort Liability Bills 14 – 20% increase
DOL OT Rule Video
Legislative / Regulatory / Standards• State Board
– Positioning for Firm Mobility– CPE tracking and audits– Peer Review
• State– Offense
• Firm Mobility• Supersedeas (Appeal Bond) Caps• Peer Review – Subpoena Power• State Filing Dates (match Federal)
– Defense• Oppose Mandatory Paid Leave• Stop Comparative Fault – Liability• Stop Sales Taxes on Services• Stop Anti- Non-disclosure/Non-Compete Bills
CPA Day in Annapolis – January 26, 2017
“Maryland is the best state in the nation to have your CPA license”
– Maryland Senator Brian Feldman, CPA
• Lowest CPA License Fees• Most flexible CPE Environment• Best environment for CPA firms to practice in
(liability, and practice flexibility)
Observations on the profession in Maryland Arthur E. Flach, CPA, Chairman of the State of Maryland Board of Public Accountancy
Maryland Board of Public Accountancy
• Audit deficiencies as reported to us by the DOL
• Continuing education problems
• Other Regulatory Agencies
• Pass rate on CPA exam in Maryland
• Peer Review issues
Matters coming to the State Board
• There is a clear link between the number of employee benefit plan audits performed by a CPA and the quality of the audit work performed. Analysis of the data indicates a wide disparity between those CPAs who perform the fewest plan audits and those firms that perform the largest number of plan audits. CPAs who performed the fewest number of employee benefit plan audits annually had a 76% deficiency rate. In contrast, the firms performing the most plan audits had a deficiency rate of only 12%.
• Enforcement • 1. Revise case targeting to focus on:
• a. CPA firms with smaller employee benefit plan audit practices that audit plans with large amounts of plan assets, and
• b. CPA firms in the 25-‐‑99 plan audit strata given their high deficiency rates and the amount of plan assets ($317.1 billion) and plan participants (9.3 million) at risk from deficient audits.
Department of Labor Audit Failures
• Ethics requirement not being met in a timely manner
• Credits are taken without substantiation that supports the credits
• Continuing education credit is taken for courses not yet taken • You cannot claim credit for a course that you intend to take before your license expires. If your license expires on August 22nd and you renew on August 15th but intend to take a course on August 20th, you may not claim credit for the August 20th course when you renew on August 15th. • Do not renew until all of your CE credits have been met at the date of renewal
• 40 hours of CE credit claimed in a 24 hour period
• Continuing education is taken after notification of audit selection
Continuing Education Audit Findings
• Each license renewal application is subject to audit by the Board. It is the primary responsibility of each licensee to fulfill the requirements of the law and to be able to document, to the Board'ʹs satisfaction, such fulfillment. All active licensees must maintain, for 4 years, records substantiating (proof of a^endance, course outline & expertise of instructor) the continuing education credits claimed by them as a prerequisite for renewal of their license.
Continuing Education Audit Findings- continued
• PCAOB sanctions • Auditor had no prior audit experience before becoming the auditor for an SEC registrant
• Auditor “enhanced” work papers prior to PCAOB inspection.
• SEC sanctions
• Failure to report misdemeanors, felonies arrests, etc.
Other Regulatory Agency Interaction
• Firms who do not understand that they are required to have a Peer Review
• Use the Peer Review selection tool at the DLLR website to determine whether or not you need to have a peer review h^p://www.dllr.state.md.us/license/cpa/cpapeer/cpapquality.shtml
• Must select audits not identified • ERISA engagements are must select audits for Peer Review purposes
Peer Review Issues
• Use the DLLR website for information about the profession
• Use the MACPA website for information about the profession
Recommendation
• Maryland ranks 44th out of 53 jurisdictions in the CPA exam pass rate
• Maryland ranks 42nd out of 53 jurisdiction in average score on the exam
• These statistics reflect a drop from prior years.
CPA Exam Pass rates
VUCABorrowed from the US Army War College, VUCA was coined by The Institute for the Future to describe the rapidly changing and complex business environment since the Great Recession of 2008.
Volatility Uncertainty Complexity Ambiguity
“One interesting finding of the survey is that CPA firms, early majority or not, don’t really see a competitive threat from specific challengers.”
– Erik Asgeirsson – CEO of CPA.COM
@tomhood #futureready
#FriendWatson
THE SHIFT CHANGE
References: US Department of Labor, Manpower Group Talent Shortage 2015
38% of employers interna:onally report talent shortages in 2015
2009: 30%
Employment of accountants and auditors is projected to grow 11 percent from 2014 to 2024, faster than the average for all occupations – US Dept of Labor 2015
Accounting and finance staff:
#1 in demand
#8 in talent shortage
Demand for Accounting is Strong
• 2 of Top 10 Best Jobs (US News & World Report)• Top 20 Happiest Professions (Huff Post)• Top 10 in Demand Jobs/Hardest Jobs to Fill – (Manpower Group)
#1Most Profitable
industry according to Sageworks
#1In small/mid-size business growth rates averaging
12% in 2016
Demand for Accounting is Strong
Building the Pipelineof Next Gen CPAs and Leaders
Student Leadership Academy
Student Leadership Academy
What we want in a career: 1) Professional Development; 2) Purpose and meaningful work; 3) Flexibility; 4) Inclusion and respect.
Guide for Becoming a CPA���www.cpaguide.macpa.org
MACPA Leadership Academy
MACPA Leadership Academy
1. Look Beyond the Billable Hour 2. More Focus on Career Development 3. Engage Us in your Vision and Purpose 4. More Coaching and Mentorship 5. More Frequent Feedback 6. More Leadership Development 7. More Transparency 8. Thank You! 9. More Collaboration 10. More Focus on the Future
Top Ten Things Next Gen leaders Want You to Know!
Building the Pipeline
8X 63% of CPAs are women
47% of CPAs are senior managers
22% of CPAs are partners
The ‘New’ Big Four1. Purpose driven workplace2. Culture of growth (Career Development)3. Inspiring workplace – flexible and inclusive4. Great leadership – trust & transparent
Purpose Driven Great Leadership CultureOf Growth
Inspiring Workplace
Vision, Purpose and Values based
Transparent and Inspirational Leadership
Learning Culture - Self and Formal
Development
Flexible and Open Work Environment
Focus on Strengths and Positivity
Build Consensus and Commitment
Career & Growth Orientation – Career Paths
Work/Life Balance
Inclusive and Diverse
Leadership Development at all
levels
Customer focused
Coaching and Feedback
High Performance – Insight to Action
Anticipatory and Proactive
Collaborative and Team based
Effective Technology Tools - mobile
The Magnetic Firm
Magnetic Firm Score
Perfect Score = 80
= 67%
$50 billion
40
30
20
10
2010
$42
$9
$12
$19
Revenue split at top 100 accounting firms
2014
$54
$17
$15
$20
Advisory services
91% growth! now nearly one-third of revenue
Tax 17% growth but now just over one-quarter of revenue
Audit and accounting 6% growth now 37% of revenue — was 45% in 2010
Other
Accounting firms continuing diversification
“The real way it was in finance — in the world I grew up in — is we spent all our time looking backwards…[Modern Finance and Accounting] is now it’s about looking to the future.”
– Safra Catz, CEO of Oracle (formerly CFO)
Understanding, accounting and managing the ‘capital assets”
Integrated Reporting
Integrated Thinking
MACPA Case Study Easier to do business with, faster (agile nimble) and resource to help you deal with this rapidly changing world.
• Mobile IT Infrastructure (Cloud)
• Collaborative Office Space
• Innovation in E-Learning
• Curriculum to Adapt to Changes
• Frictionless Experience for Members
MACPA Case Study
MACPA’s Digital Transformation
Cloud/Mobile Strategy1. 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 (collaboration and communication tools)
4. Transformation to cloud – New cloud based systems – accounting
5. Transformation to cloud – Move AMS and MACPA website
MACPA/BLI Office Move
Develop our APP Solution Bundle
Mobile-First
App Ecosystem
Cloud-Based
Collaborative
MACPA Future of Innovation
We have not arrived…
How to ride the big waves of change• Friend Watson and Technology
• Choose to be initiate change
• Know what you stand for (Purpose & Values)
• Get the right skills for the future
• Enjoy the ride
“If you don’t have a vision for yourself, you’ll just get sucked into someone else’s vision.”
– Watts Wacker
VUCA – CPA StyleLose perspective, ‘Hunker down’
FIND YOUR VISION
Core values:• Integrity• Competence• Lifelong learning• Objectivity• Commitment to excellence
CPAs…Making sense of a changing and complex world
CPAs are trusted advisors who help people and organizations shape their future. Combining insight with integrity…
The T-Shaped Finance and Accounting Professional
Tech
nica
l and
Fun
ctio
nal
Kno
wle
dg
e &
Exp
ertis
e
Dee
p
Wide
CommunicationAnticipation and serving
evolving needs
Empathy & relationships
Collaboration and synthesis
AOAF Covers the Top Skills Needed for Accoun:ng and Finance Professionals
75% covered by these Top 5 Skills
www.blionline.org
Accountants need to be proactive and there are no tools that specifically make then proactive until now. The Anticipatory Organization is a set of tools and strategies for making your firm work better in the future. No matter what you are doing, this will make you do it better.
– Daniel Hood Editor-in-Chief, Accounting Today
www.blionline.org/ao
How has Continuing Professional Education changed?
1. Nano learning recognized – 10 minute
2. Blended learning 3. Participant Engagement 4. New Fields of Study
28 lessons – 4 modules – 1 hour/week • Very short single-‐concept videos (mini TED Talks) • Rapid applica:on exercises • Visual job aids to reinforce learning
Anticipatory Organization - First Nano Learning for Accounting and Finance Professionals designed to learn more in less time
“Even though you access the course through your computer, it is nothing like computer based training (CBT). It was more like watching a number of great TED talks and after each short video, you helped the learner apply the concepts to their role. It changes how you view strategy and leadership by targeting how to think instead of telling you what to think. We were able to distill some very complex concepts, frame them in a manageable and meaningful way, and allow the user to tailor the lessons to their own field. It resonated with me far better than I expected a course delivered through this format ever could. Well done!” - Adam Dalson Major USAF
Anticipatory Organization: Accounting and Finance Edition (AOAF)
Our MBA Express and 8-Hour MBA program were featured in an Inc. Magazine column.
Sometimes you have to change what you do to remain who you are. - Jim Collins
Nine MACPA Members make Top 100 List
CPAs Making a DifferenceNever doubt that a small group of thoughtful, committed people can change the world. Indeed, it is the only thing that ever has.
- Margaret Mead
A leader’s job is to set context and direction and provide hope and inspiration.
@tomhood
What we do for you: •10% premium discount on Disability Income Insurance* •10% premium discount on Long Term Care Insurance (for member, and members family)** •Post 65 planning •Individual Health Insurance Review •Insurance Planning
What we do for your company: •Guaranteed Standard Issue Disability Income Insurance Offer* •Executive Benefit Planning •Compliance Audits •Affordable Care Act Seminars •Health Insurance •Etc…
What we can do for your clients: •Individual Insurance Planning •Estate Planning •Pension and Retirement Planning Services •Group Health Benefits
*Offer with MassMutual Disability Income Insurance **Offer with MassMutual Long Term Care Insurance Securities, investment advisory and financial planning services are offered through qualified registered representatives of MML Investors Services, LLC.
Member SIPC. Supervisory office: 11350 McCormick Rd., Executive Plaza IV, Ste 200, Hunt Valley, MD 21031 Phone: 410.785.7654. TriBridge Partners, LLC is not an affiliate or subsidiary of MML Investors Services, LLC or its affiliated companies.
Sage Live Sage Live combines the performance of a revolu:onary new real-‐:me accoun:ng engine on the market-‐leading Salesforce1 cloud plaVorm.
Improve collabora:on in your company with live
newsfeed
Stay on top of your finances with real-‐:me
metrics
Analyze your business with customizable scoreboards
Track the performance of your clients and
teams at a glance
Make decisions at the right moment with live no:fica:ons you can receive even on your
Apple Watch!
How Sage Live is changing accoun1ng?
A single view of the business
Real-time decision making
Mul:-‐dimensional general ledger
Personalize to suit your business
New way of working
Global accounting
• Access all key data in one place.
• Receive live newsfeeds and no:fica:ons.
• Track and see the financial performance of a business the way you want.
• Customize reports and dashboards / scoreboards to track key performance indicators that are important to you.
• Share and receive business informa:on with teams from any device.
• Benefit a mul:-‐lingual solu:on that meets your country legal requirements.
A mobile, social and collaborative business solution that’s the ‘office of the future’
Sage Live is an integrated cloud accounting solution that gives businesses a single real-time source of information so they can look ahead and more efficiently manage their business
Who is Sage Live for?
Services based industry love Sage Live!
Fast growing small and medium sized businesses (1-‐200 employees )
Technology and automa:on enthusiasts
Looking for an integrated front and back office solu:on
Value working from mul:ple loca:ons and stay connected with their business
Sage Live solves for all Small and Medium Businesses that want to leverage the cloud revolu:on and manage more efficiently their business. Sage Live is a perfect fit to outgrowing QBO, Xero and Sage customers willing to use a solu:on fully integrated with Salesforce Sales Cloud (CRM) or thousands of other apps in Sage Marketplace and the Salesforce AppExchange.
Business owners, CEOs, CFOs, Accountants and CPAs that try to solve their two main challenges: saving more 1me and geBng the informa1on they need to manage the business the most efficiently.
Join Us at CCH Connec:ons: User Conference October 23-‐26 │Marrioj® Marquis │Washington, D.C.
Learn more about CPA firm management today.
Contact Information: [email protected]
@BrianSiet
CCHGroup.com/Axcess 800-‐739-‐9998
#CPAFirmManagement
If there is a conversation about the future of the profession, you're bound to hear Hood's name mentioned as one of the people leading the way. – Accounting Today
Tom Hood, CPA, CITP, CGMA
• CPA Prac:ce Adviser Accoun:ng Hall of Fame • Named the Second Most Influen:al in Accoun:ng by Accoun:ng Today
Magazine 2015 • Top 150 Influencer by Linked-‐In • Top 25 Influencers in Learning & HR by HR Examiner • Top 25 Public Accoun:ng Thought Leaders by CPA Prac:ce Adviser • Working on Learning Management with AICPA/CPA2Biz, Cloud Curriculum,
Performance Management /XBRL, Leadership & Genera:ons
CEO Maryland Association of CPAs (MACPA) www.macpa.org Business Learning Institute (BLI) www.blionline.org
http://www.linkedin.com/in/tomhood/
