Published on March 3, 2014
Towson University March 1, 2014 Tom Hood, CPA, CITP, CGMA
Tom Hood, CPA, CITP, CGMA ! 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 Magazine! Tom Hood, CPA, CITP, CGMA CEO MACPA www.macpa.org and Business Learning Institute (BLI) www.blionline.org! • Named the Second Most Influential in Accounting by Accounting Today Magazine 2013 • Linked-In Top 150 Influencer • Top 25 Influencers in Learning & HR by HR Examiner • Top 25 Thought Leaders in Public Accounting by CPA Practice Adviser • Working on Learning Management with AICPA/CPA2Biz, Cloud Curriculum, Performance Management ! http://www.linkedin.com/in/tomhood/!
http://macpa.cnf.io ! Select the session: ! NABA Baltimore/MACPA Professional Issues Update Respond to a Poll! Ask a Question!
Download today’s slides at … www.SlideShare.net/thoodcpa
Insights to Ac,on “One without the other is either useless or destruc,ve” T
What do you want from your employer?
What are you looking for in your associa,on?
“If content is king, context is the kingdom” – Will Avgerakis
Business Landscape Wall Street Public Companies Public Accounting 44,000 Firms – 250,000 CPAs Total 15,000 Listed 5,008 Mid-Market Delegation: departments “System thinking” Main Street Owner begins to delegate “Focus on growth” Personal Businesses Consumer & Business blur 0-5 Employees .6M businesses 24 million employees Business, Industry, Government & NFP 250,000 CPAs Big Four Top 100 > 70 CPAs 400 > 22 CPAs 800 > 10 CPAs 3.2 million businesses 26 million employees 10,000 > 2 CPAs 33,000 Sole CPAs 22 million businesses 27 million employees Bu26 Million U.S. Small Businesses CFOs, Controllers, Analysts
A profession has three major aJributes • A dis,nct and evolving body of knowledge • A commitment to the public interest – licensed by the government • A code of conduct and ethics State of Maryland CPA License
How to become a Cer,ﬁed Public Accountant? The four E’s (State of Maryland Example) 1. Educa,on – (150 hours) Bachelor’s degree + 30 credit hours 2. Examina,on – Pass the Uniform CPA Exam 3. Ethics – Maryland requires a separate ethics course and examina,on 4. Experience – 1 year of experience working with a CPA And CPE – -‐ 80 hours of Con,nuing Professional Educa,on reported every two (2) years, including four (4) hours of ethics training
A useful framework to understand the CPA profession! The CPA profession is part of the bigger infrastructure that supports the US free market system. Like the pipes under urban streets, it is often invisible until it breaks.
Our infrastructure for regulating the US ﬁnancial markets has been created from a series of reactions to crises and changes and is in need of repair. er nsum nd Co rm a t Refo Stree t k Wall otection Ac an Fr Pr DoddSarbanes-Oxley Act Financ ial Reg ulatory Reform its d le au Sing ality udit qu A
The history of associations – Why do we exist? US Constitution Bill of Rights The First Amendment of the US Constitution allowed “associations”: • freedom of speech • to peaceably assemble • to petition the Government for a redress of grievances Bill of Rights - submitted to the states for ratiﬁcation on September 25, 1789 and adopted on December 15, 1791
Associations in America were seen as unique from the foreign perspective Alexis de Tocqueville 1835 As soon as several of the inhabitants of the United States have conceived a sen4ment or an idea that they want to produce in the world, they seek each other out; and when they have found each other, they unite. From then on, they are no longer isolated men, but a power one sees from afar, whose ac,ons serve as an example; a power that speaks, and to which one listens. – Alexis de Tocqueville
Maryland played an important role in the formation of the CPA Profession in the US • Edward Cockey - First President of AICPA • Henry Harney - concept of CPA • Max Teichman - founding member of MACPA Maryland was the third state to enact CPA legislation and ﬁrst state in 1928 to restrict audits to CPAs
The Profession’s Associa,ons The CPA Profession Associa@ons • The American Ins,tute of CPAs (AICPA) – 450,000 + members • CPA/SEA – State Execu,ves Associa,on • 50+ State CPA Socie,es • The Maryland Associa,on of CPAs (MACPA) – 9,000 CPAs + 3,000 students The Standard Se6ers & Regulators • • • • FASB GASB AICPA Na,onal Associa,on of State Boards of Accountancy (NASBA) – 54 Licensing jurisdic,ons
“People don’t buy what you do, they buy why you do what you do.” -‐ Simon Sinek
24 Why MACPA?
What CPAs think about the future 30 Future Forums 1,000 CPAs Identiﬁed these top trends http://www.bizlearning.net/live/i2afutureforums
In 1997, the CPA profession crowd-‐sourced its future with over 3,500 CPAs in the CPA Vision Project That was re-‐validated in 2011 by 8,000+ CPAs Our core purpose, our reason for being is CPAs... Making sense of a changing and complex world. Here is what they said…
The DNA of the CPA Values & Competencies • • • • • Leadership Communica,on Strategic Thinking Collabora,on & Synthesis Technologically Savvy
Our Vision Statement for the future is: ( mandates to ourselves for a successful future) CPAs are the trusted professionals who enable people and organizations to shape their future. Combining insight with integrity, CPAs deliver value by: • Communica,ng the total picture with clarity and objec,vity, • Transla,ng complex informa,on into cri,cal knowledge, • An,cipa,ng and crea,ng opportuni,es, and • Designing pathways that transform vision into reality.
CPAs are trusted advisors who, combining insight with integrity deliver value by: Communica@ng the total picture with clarity and objec,vity Transla@ng complex informa,on into cri,cal knowledge An@cipa@ng and crea,ng opportuni,es Turning insights into ac@on to transform vision into reality T
Current State ! The Shift Change !
The New Normal - VUCA
Historical Context – The Perfect Storm • Web 2.0 • Globalization • Generations Source: Don Tapscott - Wikinomics
Dealing with the Shift Change – MACPA Young Professionals
The Next Gen CPA Leaders… 1. 2. 3. 4. 5. 6. are proactive, ﬂexible, adaptive and collaborative by nature; have regained the trust of their clients and the public at large; have successfully bridged the profession’s “leadership gap” by focusing on succession planning, personal growth, and generational cooperation; have created the profession’s premier global industry standards and best practices; have redeﬁned the profession through work / life integration, collaboration, and a team-ﬁrst approach; and have earned a reputation as technological innovators.
How? 1. Professional unity From: To: 2. Work / life integration Hierarchy Network Relationships 3. The evolving nature of Transactions Efﬁcient Effective Well managed Well led leadership and new Command & Control Connect & leadership models Collaborate Pull 4. Proactive, goal-focused Push Good Great planning 5. Networked collaboration 6. Embracing and adopting new technologies
Regulations & Standards! hJp://cpa.tc/1us • Interna,onal – IASB & IFRS • FASB & PCC • AICPA & FRF – SME • ASB – Clarity (12/15) • GASB Pension • PEEC
#Accoun,ngStandards Public & Private Private Companies-‐ Companies Small Business Public & Private Private Companies Companies Private Companies-‐ Small Business IFRS-‐SME (IASB) GAAP (FASB) FRF-‐SME (AICPA) Audi@ng IAASB IAASB PCAOB ASB (AICPA) ASB (AICPA) ASB (AICPA) Ethics IFAC IFAC PEEC (AICPA) Financial IFRS Repor@ng (IASB) GAAP-‐PCC (FASB) PEEC (AICPA) PEEC (AICPA)
Happy 40th Birthday FASB! 3/3/14 T
• • • • • • • 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)
If not us, Who? • 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 “It is more important to stop bad bills than pass good ones.” -‐ Calvin Coolidge – President
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
The CPA Career
Expects a 13% growth rate in accounting and auditing jobs from 2012 to 2022
Demand for accounting reaches all-time high 2013 AICPA Trends Report
Accounting education records broken 82,177 graduates 40,350 CPA ﬁrm new hires 2013 AICPA Trends Report
CPA credential in high demand! CFOs who are CPAs Robert Half 2014 Salary Guide 40 Employers: Most desired credential 35 30 Solid salary growth 25 20 Entry-level demand also strong 38% 25% 15 10 5 0 2006 2013 Source: Wall Street Journal, 8/13/13
The The CPA Brand
A Young Professionals Story
Information Overload “You have to understand accounting and you have to understand the nuances of accounting. It’s the language of business and it’s an imperfect language, but unless you are willing to put in the effort to learn accounting-how to read and interpret financial statements-you really shouldn’t select stocks yourself.” Warren Buffett
The CPA Exam Start early Don’t give up! Plan Suffer together
The Career Path Lombard Street, San Francisco http://images.nationalgeographic.com/wpf/media-live/photos/000/597/cache/lombard-street-san-francisco_59769_990x742.jpg
Rebekah Brown, CPA Maryland Associa@on of CPAs Business Learning Ins@tute (443) 632-‐2320 E-‐mail Rebekah@macpa.org Web h6p://www.macpa.org h6p://www.blionline.org Blog h6p://www.cpasuccess.com Twi6er @RJBrownCPA LinkedIn Rebekah Brown, CPA Click here to read all the blog posts this presentation was based on
The only career advice you’ll ever need…
You are in a race… !
Caused by this guy… !
It’s really a math problem… ! 2006 !
Picture: John Drake - Flickr ! “…where the most important skill is the ability to acquire new skills…” - Robert Saﬁan - FastCompany!
“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 6/24/13! T ! !
You can’t beat the machine…! But you can win if you work with the machine…!
The ﬁve C’s ! • Creative & Critical Thinking! • Contextual Awareness! • Connections & Relationships! • Communication! • Collaboration !
Career Advice Winning the race against the machine! 1. Know Yourself - Strengths, Values & Passions! 2. Create & Protect your brand - You are the CEO of You, Inc." 3. Keep your L>C! 4. Work like an immigrant! 5. Think like an artist !
Connect & Collaborate !
A leader s job is to deﬁne context and provide hope and inspiration..." 70
Tomorrow’s CPA The Maryland Association of CPAs’ Student Group Benefits – Discounts on MACPA programs Connect with other students and CPAs in the Mentor Center MACPA Scholarship Internship/Job Database Discounts on many CPA Exam review programs
How to join & get involved @tomorrowscpa www.facebook.com/TomorrowsCPA www.macpa.org/Content/students.aspx (Join here: www.tomorrowscpa.org) firstname.lastname@example.org // email@example.com
Tom Hood, CPA.CITP CEO Maryland Associa@on of CPAs Business Learning Ins@tute (443) 632-‐2301 E-‐mail firstname.lastname@example.org Web h6p://www.macpa.org Blog h6p://www.cpasuccess.com
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