Positioning You for Success in A VUCA World - members only Professional Issues Update in an interactive townhall format.
Welcome to the new normal or the "VUCA" world as it has been called. VUCA stands for Volatility, Uncertainty, Complexity, Ambiguity. How can you position yourself for success in this VUCA world. Come hear MACPA CEO Tom Hood talk about how to deal with this VUCA world and how to keep your L>C. Tom will cover the latest trends and issues facing the CPA Profession including private company financial reporting, cloud computing, getting past the generational issues, CPA firm of the future and CFO of the future. Tom will cover the latest developments from Washington to Annapolis. Attendees will come away with a personalized action plan to ride the waves of change.
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MACPA Professional Issues Update - Fall 2013 Edition
1. Tom Hood, CPA, CITP, CGMA
CEO
MACPA & the Business Learning
Institute
MACPA Town Hall & Professional
Issues Update for MEMBERS
Fall, 2013
2. http://macpa.cnf.io
Ask and answer
questions throughout
the day here…
Conferences.io was used to engage
our members and encourage open
Q&A and feedback with this
exciting new technology we will
begin incorporating into strategic
planning and CPE courses for
engagement and collaboration.
20. COSO
and
you
1. Ar,cula,ng
the
role
of
a
company
when
outsourcing
2. Pu^ng
fraud
right
out
in
the
forefront
3. Highligh,ng
the
cri,cal
nature
of
IT
21. Federal
Agenda
• Mobile
Workforce
• Tax
Due
Dates
• What’s
at
Stake
• Tax
Simplifica,on
• Amended
1099s
(de
minimis)
• DATA
Act
• Keep
accrual
basis
for
personal
service
companies
(S
Corps
&
Partnerships)
28. www.macpa.org
Revenue: how much money
the company is bringing in
Expenses: how much
money the company
is spending
Earnings
Expenses < Revenue =
Financially Healthy Company
How a CPA looks at a publicly traded
company’s financials
29. 2012 Financial Statements
Revenue =
$33.8 billion
Expenses
exceeded revenue
by $1.0 billion
Note:The Financial
Statement Deficit is
down from the
2009 highpoint of
$2.9 billion
6
31. www.macpa.org
Assets: Property, contracts, and
investments owned by a company,
regarded as having value and
available to meet debts,
commitments, or legacies.
Liabilities: Debts and
obligations arising
from past
transactions and
events
Net Assets:The residual net
worth of assets minus
liabilities. If net assets are
negative you are considered
insolvent as your obligations
are more than you own.
Assets > Liabilities =
Financially Healthy Company
How a CPA looks at a publicly traded
company’s financials
40. “It
is
more
important
to
stop
bad
bills
than
pass
good
ones.”
-‐
Calvin
Coolidge
–
President
• Sales
tax
on
accoun,ng
and
tax
services
(defeated
several
,mes)
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
registra,on
by
CPAs
2011
-‐
SB
741
• Maryland
Tax
Preparers
2007
-‐
HB
998
• Compara,ve
fault
(several
,mes)
1998
SB
618
,
2000
-‐
SB
779,
2001
SB
483
,
2007
-‐
HB
110
• Elimina,on
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
Exemp,on
from
MSP
Private
Inves,gator
Registra,on
If
not
us,
Who?
41. Building
and
Maintaining
the
CPA
Infrastructure
• Separate
funding
for
the
State
Board
2006
-‐
HB
103
• Experience
requirement
to
make
Maryland
CPAs
compa,ble
with
UAA
(Uniform
Accountancy
Act)
2001
-‐MD
COMAR
09.24.03.1
• Ethics
requirement
for
CPE
2006
-‐MD
COMAR
09.24.02.02
• Mandatory
peer
review
and
prac,ce
quality
2005
–
HB
1223
• Exemp,on
for
CPAs
from
Maryland
(and
federal)
tax
preparer
regula,on
2008
-‐
SB
817
• Prac,ce
mobility
2008
-‐
HB
1296
• Expanding
acceptable
CPE
methods
2009
-‐
HB
69
• 120/150
CPA
exam
legisla,on
2011
-‐
SB
287
• Restricted
audits,
reviews,
and
compila,ons
to
CPAs
and
added
safe
harbor
for
compila,ons
2011
-‐
HB
328
• State
Board
of
Public
Accountancy
reauthoriza,on
2013
-‐
SB
238
42. State
Board
of
Public
Accountancy
• License
–
Inac,ve
Status
Explained
• PI
License
Required
in
MD?
• Firm
Names
–
Do’s
and
Don’ts
• Mobility
–
Do
You
Have
Staff
Licensed
In
Another
State?
• MD
Firm
Permit
Number
–
Website
Requirement
• State
Board
–
Renewed
Un,l
2025
• Peer
Review
–
Update
and
Sta,s,cs
• State
Board
CPE
Audit
Periods
46. AICPA
Top
Technology
Issues
1. Managing
and
retaining
data
2. Securing
the
IT
environment
3. Managing
IT
risk
and
compliance
4. Ensuring
privacy
5. Managing
system
implementa,ons
6. Preven,ng
and
responding
to
computer
fraud
7. Enabling
decision
support
and
analy,cs
8. Governing
and
managing
IT
investment/spending
9. Leveraging
emerging
technologies
10. Managing
vendors
and
service
providers
50. "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
ater
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
55. Innova,on
for
CPAs
• Big
Four
Trends
– Social
– Mobile
– Cloud
– Big
Data
(XBRL)
• Innova,ve
Services
– Value-‐added
CFO
– CFO
Advisory
Services
– FRF-‐SME
– Assurance
on
XBRL
Tagging
– XBRL
for
research
56. About
Digital
CPA
Helping
Prac--oners
Reach
Their
Digital
Des-na-on
November
20-‐22,
2013
Gaylord
Na,onal
Resort
&
Conven,on
Center
Washington,
D.C.
Learn more or register at:
DigitalCPA.com
60. www.blionline.org
The Research
A
2012
survey
by
the
Corporate
Execu,ve
Board
showed
that
60%
of
organiza,ons
were
experiencing
a
leadership
shortage,
an
increase
of
40
percentage
points
from
the
previous
year.
67%
#1
issue
is
developing
leaders
&
succession
planning
62. www.blionline.org
The
high
performers
in
our
survey
invest
more
in
talent,
focus
on
closing
skills
gaps,
have
more
customized
training
and
development
programs,
iden,fy
future
leaders
earlier
in
their
careers,
and
have
robust
succession
plans
in
place.
They
also
focus
more
on
“sot”
leadership
skills
such
as
the
ability
to
embody
the
organiza,on’s
culture
and
values
and
to
lead
effec,vely
in
a
complex
global
business
environment.
Paradigm Shift
Source: E&Y Paradigm Shift: Building a new talent management model to boost growth
63.
64. www.blionline.org
•
Innova,on
–
making
changes
in
an,cipa,on
of
future
trends
and
customer
needs
•
Individual
-‐
The
ability
to
analyze,
and
understand
new
situa,ons
and
new
business
plaxorms
in
a
,mely
(proac,ve)
manner.
•
Organiza,onal
–
Programs
and
processes
designed
to
enhance
its
collec,ve
ability
to
acquire
new
knowledge
and
skills,
and
to
stay
ahead
of
the
market.
Source: Bersin & Associates
Innovation = Agile Learning
The right talent at
the right time with
the right skills
65. www.blionline.org
• Career
Path
(Ladder)
• Competency-‐based
Learning
• Curriculum
• Compliance
Tracking
for
CPAs
• Content
–
world-‐class
Technical
&
Leadership
Courses
in
mul,ple
formats
• Context
–
Line
of
sight
to
organiza,on
vision,
mission,
strategy
&
culture
Our approach -The Six C’s
67. CPAs
are
trusted
advisors
who,
combining
insight
with
integrity
deliver
value
by:
T
CommunicaFng
the
total
picture
with
clarity
and
objec,vity
TranslaFng
complex
informa,on
into
cri,cal
knowledge
AnFcipaFng
and
crea,ng
opportuni,es
Turning
insights
into
acFon
to
transform
vision
into
reality
70. T
Curriculum design by BLI and AICPA
usingTop 5 Competencies for future
from CPA Horizons research and
job levels from the BLI “Bounce”
Model. Leadership and
Communications were combined
and the 5th category expanded to
include practice specialties for firms
and functional areas for corporate.
Examples would include: Corporate
Accounting, FP&A, divisional
reporting, shared services, etc.
CPA Firms would have audit, tax,
industry specialties.
These technical areas would have
specific curriculums designed to
meet their specific technical
competency needs.
71. Innova,on
&
Accoun,ng
1. Create
an
innova,on
mindset
2. Nurture
crea,vity
3. Prepare
the
path
to
profit
4. Match
metrics
to
the
stage
of
development
5. Take
a
balanced
view
of
risk
across
the
porxolio
hQp://cpa.tc/3ey
72. 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
74. Three
Rules
for
Success
1. BeQer
before
cheaper
(it's
best
to
compete
on
differen,ators
other
than
price);
2. Revenue
before
cost
(priori,ze
increasing
revenue
over
reducing
costs);
3. There
are
no
other
rules.
75. “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
76. Average
is
over!
1. Think
like
an
immigrant
(Paranoid
Op,mist)
2. Think
like
an
ar,san
3. Think
like
an
innovator
(always
be
in
beta)
4. Think
like
an
entrepreneur
-‐
Tom
Friedman
hQp://cpa.tc/3cr
hQp://cpa.tc/3cr
77. Tom
Hood,
CPA.CITP
CEO
Maryland
AssociaFon
of
CPAs
Business
Learning
InsFtute
(443)
632-‐2301
E-‐mail
tom@macpa.org
Web
h`p://www.macpa.org
Blog
h`p://www.cpasuccess.com
Blog
h`p://www.bizlearningblog.com
Follow
me
on:
ü
TwiQer:
hQp://www.TwiQer.com/tomhood
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