The CPA of the (not too distant) future looks different that today’s CPA. Tax preparation is not a core CPA service. Increased specialization and collaboration among specialists will be necessary to service clients and work on internal organizational issues. Scared yet? Get yourself ready for this change through a glimpse of how the CPA profession is expected to evolve as we share with you the results of the AICPA’s CPA Horizons 2025 research study and key insights from thought leaders in the profession.

1. New Horizons
for the Accountant
November 21, 2013
Washington Society of CPAs
Not-for-Profit Conference
Donny C. Shimamoto, CPA.CITP, CGMA
v2.0-CPA

2. Speaker Biography
Donny C. Shimamoto,



CPA/CITP, CGMA
Donny is the founder and managing director of IntrapriseTechKnowlogies,
a CPA consultancy focused on organizational development and advisory
services for the middle market and nonprofits. Donny is a recognized
national expert in IT management and international author/speaker on
business intelligence initiatives. Donny helps many nonprofits by bridging
accounting and IT to strengthen organizational governance and risk
management, improve business processes through technology, and
increase the effectiveness of decision through business intelligence and
evidence-based management.
In addition to being a frequent speaker for the Nonprofit Technology
Network (nten.org), Donny is a member of the AICPA Governing Council
and is the chairman of its Information Management & Technology
Assurance Executive Committee. Donny was recognized as one of the Top
Thought Leaders in Public Accounting by CPA Practice Advisor in 2012 and
2013, received the 2009-2010 President’s Award from the Hawaii Society
of CPAs, was named to CPA Technology Advisor’s 40 Under 40 list in 2007
& 2009, and was also a Hawaii Top High Tech Leader in 2004.
Donny works with a variety of nonprofits including foundations, social
service agencies, educational institutions, and membership associations.
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.

3. New Horizons for the Accountant

CPA Horizons 2025 Research Study
–
Horizons 2025 Video
–
Research Study Overview
–
Core Purpose, Core Values, Core Competencies
–
Key Insights for CPAs


The Changing Role of the Accountant

3
Horizons Example: Sustainability
Evolution of a Profession Video
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.

4. CPA Horizons 2025
Research Study
Donny’s Disclaimer:
• The facts herein are from the AICPA’s
research study.
• The interpretations are my own.
4
Adapted from a presentation from the CPA Horizons 2025 presentation by the AICPA, and based on information
and data from the CPA Horizons 2025 Report, AICPA, 2011 © 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.

5. Are you ready for the future?

Tax preparation is not a core CPA service…
–

Audits are becoming increasingly complex…
–
–

More regulations + more electronic data + non-financial
measures = greater risk for the auditor
Increasingly requiring the use of specialists
Business reporting is moving beyond finance
–

But being a trusted advisor for financial planning is
Sustainability, green house gasses, conflict minerals,
slave labor, fare wage practices…the list goes on…
You must prepare now to be ready for the future!

6. Research Study Overview
PLANNING
DATA GATHERING
DATA ANALYSIS
RESULTS
Detailed Planning
Volunteer Committees
Website
Interactive Survey
Open Forums
Advisory Panel
Synthesis
Advisory Panel
May – Aug 2011
Sept – Oct 2011
Deliverable
Development
4th Q – Jan. 2011
Feb. – July 2011
Board Review
More Than 5,600 Participants
About 6,300 Cumulative CPA
Feedback Hours
More than 75,000 comments

7. Research Study Results

Core Purpose
–

Core Values
–

evolved and updated
Core Services
–

substantially unchanged
Core Competencies
–

withstands the test of time
Vision Project core services
removed—broad array of
new and existing services
possible
10 Key Insights
–
emerged
7

8. Core Purpose
The CPA Core Purpose withstood the test of time
(originally established in 1998):
CPAs …
making sense of a changing
and complex world
8

9. Core Values
Core Values were substantially unchanged:

Integrity

Competence

Lifelong learning

Objectivity

Commitment to excellence

Relevance in global marketplace
9

10. Core Competencies
Core Competencies evolved:

Communications skills

Leadership skills

Critical thinking and
problem-solving skills

Anticipating and meeting needs

Synthesizing intelligence to insight

Integration and collaboration
Core Competency removed:

Technologically adept
–
No longer a differentiator
–
Now woven into all that we do
10

11. Key Insights

Technology

Demographic Shifts

Pre-Certification and
Lifelong Learning

Trusted Advisor

Marketplace

Value Proposition

Worldwide Profession

Market Permission
Trusted Attester
 Pride in the Profession


12. Technology
Understand and leverage relevant
technology in conjunction with CPA Core
Competencies to deliver superior services
“Changes will continue to make data
easier to access and compare. Electronic
communication has already become the
norm rather than the exception.”
41 year old CPA who works as a
Controller in Business & Industry
8 out of 10 respondents agreed that technology can replace or automate
products and services on the lower end of the value chain.

13. Pre-Certification and Lifelong Learning
“CPAs have to be both the
teacher and the learner in
the profession for a
lifetime.”
Evolve the educational
framework to keep pace with
the changing dynamics of
business, government and our
profession
”Always look to learn new ideas and
new ways of doing things. Keep
an open mind and be able to adapt
and reinvent yourself as time goes
on.”
68 percent of survey
A young CPA working in
respondents agreed that
warehousing and logistics
“accounting education should
focus on compliance as well as
effective application of judgment.”

14. Worldwide Profession
Position the CPA as a premier designation of the
accounting/finance profession throughout the world
90% percent of CPAs agreed with the following:
“It will be increasingly important for the accounting
profession to have awareness of international business
issues and trends in the future.”
The CPA designation provides a strong
foundation and should be recognized as a
premier accounting and finance
designation throughout the globe.
On January 31, 2012, the AICPA and CIMA launched the
Chartered Global Management Accountant (CGMA) designation
14

15. Market Permission
Leverage the strengths of the profession to
expand market permissions
Services around data privacy and security, sustainability, and
developing business strategies are just a few examples
“The changing business environment
will offer new areas of services that
CPAs can jump into since the CPA is
well-educated, well-trained, and
well-respected to take advantage of
those opportunities.”
A CPA working at a not-for-profit
15

16. Trusted Attester
Preserve the role of the CPA as the trusted
attester of financial and other information

One of the foundational roles for CPAs is the role
of trusted attester. There is no other profession
that is qualified to fulfill the role of auditor.
–

“The profession must increase its independence and
remain a viable source of financial truth in a world of
increasing complexity and global commerce.”
CPAs are able to expand our market permissions
in part because of our reputation for objectivity
and integrity that has been built on our role as
trusted attesters.

17. Pride in the Profession
Thousands indicated pride in the resilience of
their reputation and the rigorous preparation
and values that the CPA credential represents.
• The profession must be vigilant in
upholding this well-earned reputation –
a key competitive advantage
Encourage pride among CPAs in the
profession and in the value CPAs create
throughout society
“I am most proud of the idea that our professionals have been able to occupy
diverse jobs at high levels from accounting to sales, from operations to HR,
from consulting to management.” – CPA at a small consulting firm

18. Demographic Shifts
Continue to offer opportunities that enhance the appeal of
the profession and be proactive in addressing both U.S. and
global demographic shifts
Differences in the needs, wants and work
Convergence of Baby Boomers,
styles of these generations create
Generation X, Generation Y and
numerous challenges and also
Millennials is transforming the workplace
opportunities

19. Demographic Shifts

There is an increasing percentage of minorities in
the profession
–

And the globalizing nature of business which will
be reflected in the changing demographics of
clients and business owners
–

But the diversity in the profession is still not
representative of the general population
Who want to be serviced by CPAs similar to themselves:
speaks their native language and understands their
cultural values
3/4 of respondents agreed with the statement
–
“The profession must work to reflect a modern workforce
and generational differences in values and work styles”.

20. Trusted Advisor
Promote the CPA as the trusted advisor who, in addition to
providing core CPA services, develops solutions to complex
problems by integrating knowledge, expertise and
resources from multiple disciplines
“CPAs symbolize a trusted business advisor…..we
will be called on even more often to be the business
consultant for our clients.” –CPA in their 30’s
CPAs increasingly will be called upon to help solve
complex and challenging business problems.
• Serving as an integrator for multiple professional
disciplines and subject matter experts
• Delivering an integrated and multi-faceted
business solution
Increasing demand for CPA
specialists both within the profession
and crossing into other disciplines

21. Marketplace
Address continual changes in
the marketplace, economy,
businesses and regulations
CPAs must not only demonstrate competence
and commitment to excellence in their
particular area of practice, but also
demonstrate knowledge of business and the
evolving marketplace.
• CPAs agreed that the pace of change is
accelerating
• Regulations and standards are evolving
and increasing in complexity
• The increasingly globalized world
introduces an international component to
the rate of change.
• Technology continues to transform the
business and social environment.

22. Value Proposition
Increase the visibility of the profession’s value
proposition by demonstrating the profession’s core
values in multiple areas of business and society
• “Integrity, independence, and our focus on the blend of
duty to our client and to the public is unique to our
profession. It cannot be compromised for ANYTHING.”
• The integrity, objectivity and commitment to excellence
demonstrated by CPAs lead the public to trust CPAs.
• CPAs are dedicated to lifelong learning, competence and
relevance in the global marketplace.
• The profession will continue to evolve and innovate to
meet the changing needs of business and society
…how will YOU?
22

23. Key Insights

Technology

Demographic Shifts

Pre-Certification and
Lifelong Learning

Trusted Advisor

Marketplace

Value Proposition

Worldwide Profession

Market Permission
Trusted Attester
 Pride in the Profession


24. Horizons Example:
An opportunity for the CPA
profession with Sustainability
Adapted from a presentation to the AICPA
Assurance Services Executive Committee by:
Bob Bunting, CPA
Chair, Sustainability Services Group
Moss Adams LLP
24
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.

25. Sustainability: A Sustainable Enterprise
Source: Bob Bunting, CPA, Chair, Sustainability Services Group, Moss Adams LLP
Sustainable Enterprise
Strategy
Planet
CPA Services?
People
Profits
GHG
Energy
Water
Waste
Community
Fair Wage
Slave Labor
Diversity
Financial
Supply Chain
Codes of Conduct

26. Sustainability: Why Companies Care
Source: December 2010 study by AICPA/CIMA/CICA. “Evolution of Corporate Sustainability Practices”
via Bob Bunting, CPA, Chair, Sustainability Services Group, Moss Adams LLP










Value set of company and/or its leaders
Efficiency and cost savings
Compliance with legal and regulatory requirements
Achieving competitive advantage and long-term
profitability
Managing risk to the reputation of your
company/brand(s)
Customer demand for green/sustainable
products/services
Employee attraction and retention
Government grants or other incentives
Public scrutiny over labor, sourcing, or other business
practices
Supply chain vendor requirements

27. Sustainability: Potential Issues
Source: Bob Bunting, CPA, Chair, Sustainability Services Group, Moss Adams LLP
A Supply Chain Reporting Problem?






Finance Department frequently does not even
know the company is “reporting”
HR or Sales is the reporting department.
No formal data collection system.
No controls over accuracy or puffery (valuation)
Audits are growing because misrepresentation is
common.
Misreporting is causing “probation”, expensive
corrective actions and even loss of customer
relationships.

28. Sustainability: Donny’s Interpretation
Sustainability…
 Is an emerging opportunity for the profession
–
–
–

Is an area where we must defend our role as
trusted attester
–

For business reporting…on non-financial metrics &
measures
For compliance reporting…and vendor certification not
related to internal control over financial reporting
For service reporting…the next generation of SOC reports
AICPA proposed UAA change to definition of assurance
Will be part of the future of our profession…
…and helps CPAs to play a critical role in the future of our world

29. The Changing Role
of the Accountant
•
•
•
29
Spectrum of Accountants’ Roles
Accounting Organization Evolution
Accountants’ Role in Achieving Impact

30. Spectrum of Accountants’ Roles
Source: CIMA, 2012
30

31. [Accounting] Organization Evolution
Source: McKinsey & Company, via CIMA, 2012
Expectations have increased for
[Accounting] organizations
• Focused on process
and risk minimization
• Focused on decision
support
• Provides sound
financial analysis to
management for
making financial and
operating decisions
• Integral part of management
team to support value/wealth
creation
• Identifies opportunities and
provides critical information
and analysis to make superior
operating and strategic
decisions
• Dominated by
reporting and
compliance
functions
Stage
Role
Key Capabilities
Challenge
Transaction
1 Management
Bean Counters
• Financial
accounting
Number of
transactions
2
Controlling the
Business
Planning &
3 Analysis
Integrated Functional
4 Excellence
Process Managers
Business Partners
Value Managers
• Management reporting
• Tax
• Audit
• Treasury
• Performance
management
• Analysis
• Superior decision support to
invest wisely
• Business Development
• Enterprise risk management
Consistent process
excellence
Talent and insight
into valuable drivers
Leadership and
performance
management

32. Accountants’ Role in Achieving Impact
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.


32
Accountants often stop at the Analysis stage
(which is where technology will also take you).
We need to go all the way through to IMPACT!

33. How are YOU achieving Impact?

Consider all the sessions that you attended during
the conference
–

Look at the evolution of your department’s role in
the organization
–

What do you need to increase the dept’s impact?
Take some time for yourself
–
–
33
Choose 3-4 things to do when you go back that will have
a current benefit for yourself or your department
Go back to the CPA Horizons 2025 key findings
What do you need to do to ensure that YOU are ready for
the demands of the future?
© 2013 IntrapriseTechKnowlogies LLC. All Rights Reserved.

34. Thank you for your
attention and participation!
Any Questions?
Donny C. Shimamoto, CPA.CITP, CGMA
INTRAPRISETECHKNOWLOGIES LLC
email: donny808@cpa.com
voice: (808) 735-8324
twitter: @donnyitk
Blog: www.donnyitk.com
See also:
• CPA Horizons 2025 Report:
http://www.aicpa.org/Research/CPAHorizons2025/Pages/CPAHorizonsReport.aspx, AICPA, 2011