Accounting Career & Professional Issues Update for Students - 2014

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Information about Accounting Career & Professional Issues Update for Students - 2014

Published on March 3, 2014

Author: thoodcpa



Special Accounting Major presentation on a career in accounting and the job outlook for becoming a CPA.

This special session was in conjunction with the NABA Baltimore Chapter and the Tomorrow's CPA student group of MACPA.

This session featured six universities in Maryland - Towson University (host), Morgan, UMUC, University of Baltimore, Stevenson University, and University of Maryland.

MACPA CEO Tom Hood, voted second most influential leader in the CPA Profession in Accounting Today’s 2013 list of the Top 100 Most Influential People in Accounting (his ninth time on the list) sees five fundamental shifts facing accounting now – Leadership, Learning, Technology, Generations and Workplace. In a world of rapid change and increasing complexity, the winners will be those individuals and organizations who can keep their L>C², their rate of learning must be greater than the rate of change and greater than their competition. Tom’s updates are always popular for CPAs and include the latest trends and issues the profession is facing locally, nationally, and globally.

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 and Business Learning Institute (BLI)! •  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 !! ! Select the session: ! NABA Baltimore/MACPA Professional Issues Update Respond to a Poll! Ask a Question!

Download today’s slides at …

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?

The Future

What CPAs think about the future 30 Future Forums 1,000 CPAs Identified these top trends

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://   •  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       •  Ethics  requirement  for  CPE  2006  -­‐MD  COMAR   •  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

Rebekah  Brown,  CPA   Maryland  Associa@on  of  CPAs   Business  Learning  Ins@tute   (443)  632-­‐2320   E-­‐mail   Web  h6p://          h6p://     Blog  h6p://   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 (Join here: //

Tom  Hood,  CPA.CITP   CEO   Maryland  Associa@on  of  CPAs   Business  Learning  Ins@tute   (443)  632-­‐2301   E-­‐mail   Web  h6p://   Blog  h6p://    

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