State of the Accounting Profession - Linked-In

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Information about State of the Accounting Profession - Linked-In
Business & Mgmt

Published on March 15, 2014

Author: thoodcpa



State of the Accounting and CPA Profession for Linked-In Influencers series.

The old 80's party tune from Timbuk 3 aptly describes the state of the accounting profession in 2014 - "The future's so bright, I gotta wear shades."

Accounting was ranked as the third best career by a US News and World Report's Best Jobs issue in 2014. With an unemployment rate of half the national average (3%) and a growth rate of 13% for the next ten years according to the U.S. Bureau of Labor Statistics most recent report, demand for accounting professionals is at an all time high and projected to continue into the future.

This presentation covers the current state of the accounting profession and includes research about the future from the AICPA CPA Horizons 2025 Project.

State of My Industry: Accounting

The future is so bright, I gotta wear shades… - Timbuk3

The future of accounting is bright – accounting students from six Maryland universities at MACPA – NABA event

The CPA Career

Expects a 13% growth rate in accounting and auditing jobs from 2012 to 2022

6 # 3 2014

Accounting education records broken 2013 AICPA Trends Report 40,350 CPA firm new hires 82,177 graduates

CPA credential in high demand! Source: Wall Street Journal, 8/13/13 25% 38% 0 5 10 15 20 25 30 35 40 2006 2013 CFOs who are CPAs Employers: Most desired credential Solid salary growth Entry-level demand also strong Robert Half 2014 Salary Guide

The Future

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

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   CPAs... Making sense of a changing and complex world. Core Purpose Here is what they said… Core Values

The  top  five  skills  for  CPAs! • Leadership! • Communications! • Strategic thinking! • Collaboration & synthesis! • Technology Savvy!

Our  Vision  Statement  for  the  future  is:   (  mandates  to  ourselves  for  a  successful  future)   •  CommunicaOng  the  total   picture  with  clarity  and   objecOvity,   •  TranslaOng  complex   informaOon  into  criOcal   knowledge,   •  AnOcipaOng  and  creaOng   opportuniOes,  and   •  Designing  pathways  that   transform  vision  into  reality.   CPAs are the trusted professionals who enable people and organizations to shape their future. Combining insight with integrity, CPAs deliver value by:

CPAs  are  trusted  advisors  who,  combining   insight  with  integrity  deliver  value  by:   T   Communica)ng  the  total  picture  with  clarity  and  objecOvity   Transla)ng  complex  informaOon  into  criOcal  knowledge   An)cipa)ng  and  creaOng  opportuniOes     Turning  insights  into  ac)on  to  transform  vision  into  reality    

Current State! The Shift Change!

Historical Context – The Perfect Storm •  Web 2.0 •  Globalization •  Generations Source: DonTapscott - Wikinomics

The New Normal - VUCA

The Shift Change!

Dealing with the Shift Change – MACPA Young Professionals

The Next Gen CPA Leaders… 1.  are proactive, flexible, adaptive and collaborative by nature; 2.  have regained the trust of their clients and the public at large; 3.  have successfully bridged the profession’s “leadership gap” by focusing on succession planning, personal growth, and generational cooperation; 4.  have created the profession’s premier global industry standards and best practices; 5.  have redefined the profession through work / life integration, collaboration, and a team-first approach; and 6.  have earned a reputation as technological innovators.

How? 1. Professional unity 2. Work / life integration 3. The evolving nature of leadership and new leadership models 4. Proactive, goal-focused planning 5. Networked collaboration 6. Embracing and adopting new technologies From: To: Hierarchy Network Transactions Relationships Efficient Effective Well managed Well led Command & Control Connect & Collaborate Push Pull Good Great

We  are  in  a  race  against  the   machines…!

Caused by this guy…! The exponential growth in computing power has caused an explosion of new technologies and software that is on the order of a “Cambrian explosion” challenging accountants to keep up.

25 Cambrian “Big Bang” Explosion

You can’t beat the machine…! But you can win if you work with the machine…!

Picture: John Drake - Flickr! “…where the most important skill is the ability to acquire new skills…” - Robert Safian - FastCompany!

T! “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!

The  top  five  skills  for  CPAs! • Leadership! • Communications! • Strategic thinking! • Collaboration & synthesis! • Technology Savvy!

“You can’t stop the waves, but you can learn how to surf.” Jon Kabat-Zinn

“If content is king, context is the kingdom” – Will Avgerakis

Business Landscape Main Street Owner begins to delegate “Focus on growth” Bu28 Million U.S. Small Businesses Mid-Market Delegation: departments “System thinking” .6M businesses 24 million employees 3.2 million businesses 26 million employees 24 million businesses 22 million solopreneurs 27 million employees Personal Businesses Consumer & Business blur 0-5 Employees Wall Street Public Companies Total 15,000 Listed 5,008 Public Accounting Business, Industry, Government & NFP 44,000 Firms – 250,000 CPAs 250,000 CPAs Big Four Top 100 > 70 CPAs 400 > 22 CPAs 800 > 10 CPAs 10,000 > 2 CPAs 33,000 Sole CPAs CFOs, Controllers, Analysts

A profession has three major attributes •  A distinct 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 Certified Public Accountant?             The four E’s (State of Maryland Example) 1.  Education – (150 hours) Bachelor’s degree + 30 credit hours 2.  Examination – Pass the Uniform CPA Exam 3.  Ethics – Maryland requires a separate ethics course and examination 4.  Experience – 1 year of experience working with a CPA And CPE – - 80 hours of Continuing Professional Education reported every two (2) years, including four (4) hours of ethics training

35 A leader s job is to define context and provide hope and inspiration..."

Tom Hood, CPA, CITP, CGMA! Tom Hood, CPA, CITP, CGMA CEO MACPA and Business Learning Institute (BLI)!! 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! •  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 !

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