Entrepreneurship & organisations: influences and organizations
Computing is profoundly impacting your members v3
1. Cloud
Compu)ng
is
Having
a
Profound
Impact
on
Your
Members
Test
Your
Own
Understanding
of
the
Cloud
Gregory L. LaFollette
Vice President – Product Strategy, CPA2Biz
AICPA & CPA/SEA Interchange 2012
Session 44: Friday, July 20, 2012 - 8:30 to 9:30AM
CPA2Biz, Inc. - Proprietary and Confidential Information
2. Gregory
L.
LaFolle@e,
CPA,
CITP,
CGMA
Vice
President
of
product
strategy
–
CPA2Biz
Columnist
&
Speaker
Former
• Eide
Bailly,
LLP
–
Senior
Manager,
Tax
and
Technology
Consul=ng
(6
years)
• LaFolle/e
Consul4ng,
LLP
-‐-‐
Consultant
to
the
industry
(12
years)
• The
CPA
Prac4ce
Advisor
-‐-‐
Execu=ve
Editor
(6
years)
• Thomson
Reuters
(Crea4ve
Solu4ons)
-‐-‐
Vice
President
-‐
Product
Strategy
(5
years)
•
LaFolle/e,
Jansa,
Brandt
&
Co.
,
LLP
-‐-‐
Tax
&
Technology
partner
(23
years)
AICPA
Commi@ees
§ Journal
of
Accountancy
–
Technology
Advisory
Board
§ Prior
Service:
§ CITP
Creden=al
CommiQee
–
Chair
(7
years;
Member
4,
Chair
3)
§ TECH+/Prac==oners
Conference
-‐-‐
Planning
CommiQee
(6
years)
§ Na=onal
Accredita=on
Commission
–
ad
hoc
(3
years)
§ Na=onal
Tax
Educa=on
Program
(AICPA/UI)
-‐-‐
Graduate
and
former
Staff
Lecturer
(12
years)
§ Top
10
Technology
Ini=a=ves
-‐-‐
Review
CommiQee
(5
years)
§ Microcomputer
Advisory
Services
CommiQee
(3
years)
CPA2Biz, Inc. - Proprietary and Confidential Information
3. Contact
Informa)on
Greg
LaFolle@e
Greg.LaFolleQe@CPA.com
Greg.LaFolleQe@CPA2Biz.com
Greg@theLaFolleQes.net
New
York
Office
-‐
212-‐596-‐6267
South
Dakota
Office
–
605-‐977-‐4823
Cell
–
734-‐330-‐9015
200
East
10th
Street
#500
Sioux
Falls,
SD
57104
CPA2Biz, Inc. - Proprietary and Confidential Information
4. CPA2Biz
Business
Focus
Transforming Accounting Services
New Learning Gateway
Firm
Cloud Computing Programs
-Launched in 2011 Technology
-Growing Use
Solu)ons
Online
LMS
Portal
CPA2Biz
CPA2Biz.com, IFRS.com
-Leading Sites
C2B, Firm, AICPA, States
Marke)ng
Mobile
&
AICPA & State Societies
Technology
-Leading Capabilities
Apps
Services
CPA2Biz, Inc. - Proprietary and Confidential Information
5. CPA2Biz
Opera)ons
–
100%
Cloud
Based
Performance
Accounting Platform Management
Data
Bill Payment Center
LMS
CRM
Email
Website Operations
All of our business is managed through cloud based applications
CPA2Biz, Inc. - Proprietary and Confidential Information
6. CPA2Biz
Broad
Firm
Solu)ons
Strategy
PlaQorm
&
Distribu)on
Integra)on
Educa)on
CPA2Biz, Inc. - Proprietary and Confidential Information
7. CPA2Biz
Firm
Solu)ons
PorQolio
Client Accounting Tools
(Over 1,000 firms now using)
Bill Pay
Firm Workflow (Bill.com)
General
Management Practice
Ledger
Workflow
(Used by 50 of (XCM) (Intacct) Client Dashboards
Top 200 firms)
CPA2Biz Firm
Solutions Payroll
Paychex has
Digital Brand Email &
Backup Portfolio (Paychex)
introduced a
for the Firm (CPA.com) firm payroll
platform
Newsletter, Audit
Email & Other IT other misc. Confirm- Audit workflow
Services (C2B) ations (7,000 firms now using)
(0ver 900 users)
CPA2Biz, Inc. - Proprietary and Confidential Information
8. Posi)oning
for
Success
in
a
Digital
Age
Key
Ques)ons
For
You:
1) What
does
this
mean
to
your
members?
2) How
will
they
retool
and
compete?
3) What
should
your
member
firm’s
technology
strategy
be?
4) How
are
they
developing
talent?
5) How
are
your
member
firm’s
client
services
changing?
6) What
does
this
change
about
how
you
serve
your
members?
CPA2Biz, Inc. - Proprietary and Confidential Information
9. Agenda
Posi)oning
for
Success
Technology
Drivers
Client
Accoun)ng
Services
7
Early
Warning
Signs
CPA2Biz, Inc. - Proprietary and Confidential Information
10. Three
Concurrent
Drivers
Technology
1st
Driver
Business
Prac)ces
2nd
Driver
Client
Expecta)ons
3rd
Driver
CPA2Biz, Inc. - Proprietary and Confidential Information
11. The
Hardware
Driver
1965
-‐
1975
-‐
1985
–
1995
-‐
2005
–
1975
1985
1995
2005
2015
Service
All
manual
Premise-‐
Bureau
to
Mini’s
to
DOS
to
to
Service
based
to
Mini-‐ Micro’s
Windows
Bureaus
SaaS
computers
CPA2Biz, Inc. - Proprietary and Confidential Information
12. The
Socware
Driver
Socware
as
• Socware,
services
&
support
offerings
specifically
designed
for
one-‐to-‐many
a
Service
delivery
over
the
Internet
• Packaged
socware
customized,
deployed
Hosted
&
managed
by
provider
Tradi)onal
• Today’s
packaged
socware
deployed
on-‐
Socware
premise
CPA2Biz, Inc. - Proprietary and Confidential Information
13. The
Business
Prac)ce
Driver
• 1980s:
Digital
Office
Work
Begins
20th Century
– Personal
Compu=ng,
Excel,
Quicken,
etc.
• 1990s:
Digital
Value
Chains
– Internet,
Networks,
Email,
Tax
&
Audit
Somware,
e-‐
Commerce
• 2000s:
Digital
Consump=on
21st Century
– Paperless,
Online
Research,
Mobile,
Social
Media,
Self-‐Service
• 2010s:
Digital
Engagements
– Portals,
Cloud,
Collabora=on,
Apps,
etc
Geoffrey Moore Slide – Adopted for CPA Marketplace
CPA2Biz, Inc. - Proprietary and Confidential Information
14. The
Client
Expecta)on
Driver
TODAY
FUTURE
Systems
Systems of
Record
Systems
of Record
of
Engagement
• Consolidate • Collaborative
• Organize • Intelligent
• Report • Knowledge Based
(The Digital CPA )
Geoffrey Moore Slide – Adapted for CPA Marketplace
CPA2Biz, Inc. - Proprietary and Confidential Information
15. Firm
Value
Chain
Lower Value & Higher Value
Historical Focus & Future Focus
Input
Assemble
Analyze
&
Advise
&
Report
Data
&
Verify
Interpret
Consult
CPA2Biz, Inc. - Proprietary and Confidential Information
16. We’re
in
the
Midst
of
a
Great
Sea
Change
“Things
take
longer
to
happen
than
you
think
they
will,
and
then
happen
faster
than
you
thought
they
could”
—old
axiom
“Rate
of
change
today
is
much
greater
than
it
was
during
dot
com
era”
—
Jeff
Bezos,
CEO
Amazon
Acceleration of Change
(Highlighted By Cloud & Mobile Movement)
CPA2Biz, Inc. - Proprietary and Confidential Information
17. Four
Technology
Drivers
of
the
Digital
CPA
CPA2Biz, Inc. - Proprietary and Confidential Information
18. CPA2Biz
Focus
On
Technology
Drivers
Transforming Technology Drivers
Cloud Information
Mobile Digital Brand
Computing Security
Change Management
CPA2Biz, Inc. - Proprietary and Confidential Information
19. Key
Benefits
of
Accoun)ng
Firm
Usage
of
Cloud
Applica)ons
CPA2Biz
2012
Technology
Survey
• Being
able
to
work
anywhere,
any)me:
88%
5%
• Disaster
backup
&
recovery
:
85%
• Improved
client
service
&
collabora)on:
84%
• Being
able
to
use
the
latest
applica)ons:
82%
4%
• Being
able
to
serve
non-‐local
clients:
80%
• Expand
services,
create
new
revenue
sources:
79%
11%
CPA2Biz, Inc. - Proprietary and Confidential Information
20. Growth
of
Virtual
Office
CPA2Biz
2012
Technology
Survey
Regarding
a
physical
office:
• In
2011
4%
of
firms
were
“virtual”
• By
2012
those
numbers
have
grown
to
8%
CPA2Biz, Inc. - Proprietary and Confidential Information
22. US Market Forecast
US
Smartphone
&
Tablet
User
Base
Forecast
(in
millions)
140.00
133.0
120.00
119.9
106.7
100.00
90.1
89.5
80.00
75.6
60.00
60.2
54.8
40.00
33.7
Smartphones
20.00
13.0
Tablets
0.00
2010
2011
2012*
2013*
2014*
Source: eMarketer
CPA2Biz, Inc. - Proprietary and Confidential Information
23. Accounting Firm-Branded Apps
Moss Adams
KPMG
Eide Bailly
THE APP IS THE WEB SITE OF THE 90’s
AND IS COMING TO SMALL FIRMS
CPA2Biz, Inc. - Proprietary and Confidential Information
27. Digital
Brand
CPA2Biz, Inc. - Proprietary and Confidential Information
28. Importance
of
Digital
Brand
in
Client
Rela)onship
Historical
Today
• Meeting in an office • Online Collaboration
• Phone • Email
• Classified • Social Networking
• Yellow Pages • Search
• Word of mouth • Review sites
CPA2Biz, Inc. - Proprietary and Confidential Information
29. What’s
Your
Online
Digital
Brand?
Consumer Email Account Professional Email
1. Firm Branded Domain:
smithcpa@aol.com - www.smithcpa.com
- Branded web site and email
2. CPA.com Domain
- Your.Name@CPA.com
CPA2Biz, Inc. - Proprietary and Confidential Information
30. Accoun)ng
Firm
Use
of
Social
Media
CPA2Biz
2012
Technology
Survey
80
70
Firm Usage of Blogs and Twitter
60
each up 60% year-over-year
50
40
2011
30
2012
20
10
-‐
LinkedIn
FaceBook
TwiQer
Blog
• 34% of CPAs surveyed are using tablets (iPads) for business purposes,
and another 12% plan to soon
• According to recent Boomer study, this is as high as 57% for mid sized firms
CPA2Biz, Inc. - Proprietary and Confidential Information
31. Accoun)ng
Firm
Use
of
Video
CPA2Biz, Inc. - Proprietary and Confidential Information
33. Accoun)ng
Firm
Use
of
Video
CPA2Biz, Inc. - Proprietary and Confidential Information
34. Informa)on
Security
CPA2Biz, Inc. - Proprietary and Confidential Information
35. CPA2Biz
Survey
Results
–
April
2012
Accoun=ng
Firm
Usage
of
Web-‐Based
Applica=ons
TOP CONCERNS (SIGNIFICANTLY OR SOMEWHAT CONCERNED)
• Security:
73%
concerned
(
8%
from
2011)
• Confiden)ality:
72%
concerned
(
8%
from
2011)
• Privacy:
67%
concerned
(
11%
from
2011)
• Availability:
64%
concerned
(
4%
from
2011)
CPA2Biz, Inc. - Proprietary and Confidential Information
36. What
alleviates
CPAs’
concerns?
CPA2Biz
2012
Technology
Survey
100%
90%
80%
70%
60%
50%
Not
Important
Somewhat
40%
Very
Important
30%
20%
10%
0%
Company
SOC
2
Other
firms'
Strong
SLAs
in
Training
on
reputa=on
usage
place
cloud
service
CPA2Biz, Inc. - Proprietary and Confidential Information
37. Cyber
Security
–
Importance
of
Topic
Cyber Security - Extent
of Issue:
• The growing number of attacks on our cyber
networks has become, in President Obama's words,
"one of the most serious economic and national
security threats our nation faces.“
• FBI Director Quote. “Today there are only two types
of companies – those that have been hacked or will
be hacked.”
CPA2Biz, Inc. - Proprietary and Confidential Information
38. Cyber
Security
–
Best
Prac)ces
1.
Informa)on
Security
Framework
– Third
Party
Security
Reviews
(SOC
Reviews,
Intrusion
tes=ng,
etc.)
– Document
processes
and
procedures
– Understand
Your
Threat
Landscape
– IT
Security
Policies
&
Vendor
Agreement
Reviews
2.
Incident
Response
Framework
– Know
when
to
acknowledge
outside
support
is
needed
– Leverage
established
response
network
(law
enforcement,
cyber
experts,
specialists)
3.
Ongoing
Educa)on
Ac)vi)es
– Educate
how
you
communicate
digitally
to
members,
customers,
employees,
etc
4.
Cyber
Insurance
CPA2Biz, Inc. - Proprietary and Confidential Information
39. Cyber
Security
Threat
Landscape
Areas
• External
–
phishing
aQacks,
hacking,
state
sponsored
espionage
• Internal
–
disgruntled,
disloyal,
depar=ng
employees
• Human
error
• Ac)vists
–
denial
of
service,
reputa=on
aQacks
• Iden)ty
Thec
–
IRS
tax
refund
fraud
• Economic
espionage
(state
sponsored,
compe=tors)
CPA2Biz, Inc. - Proprietary and Confidential Information
40. Cyber
Security
Landscape
Defining
Your
Threat
Landscape
§ You
need
to
define
the
par=culars
of
your
situa=on
§ Different
measures
and
strategies
− Na=onal
Security
Organiza=ons
− Fortune
100
Companies
− Poli=cal
Targets
− Small
Businesses
− Consumers
CPA2Biz, Inc. - Proprietary and Confidential Information
41. Member
Educa)on:
What
CPA
Firms
Should
Be
Doing
• Vendor
management
• Mobile
device
policy
• Cloud
compu=ng
• Educa=on
to
avoid
falling
• WriQen
informa=on
security
for
phishing
scams
or
social
policy
engineering
• Affiliate
with
local
security
• Insurance
op=ons
where
consultant/forensic
vendor
affordable
• Smart
password
prac=ces
• Employee
training
and
• Back-‐up’s
educa=on
• An=
virus
/
malware
• Strong
encryp=on
vigilance,
currency
CPA2Biz, Inc. - Proprietary and Confidential Information
42. Expansion
of
SAS
70
to
Meet
Market
Needs
• Service
Organiza)on
Control
(SOC)
Reports
– SOC
1:
Financial
Repor=ng
– SOC
2
&
SOC3:
Based
on
Trust
Services
• Trust
Services
– Security
– Availability
– Processing
Integrity
– Confiden=ality
– Privacy
• Opportunity
to
Lead
CPA2Biz, Inc. - Proprietary and Confidential Information
43. Rebirth
of
Client
Accoun=ng
Services
in
the
Cloud
CPA2Biz, Inc. - Proprietary and Confidential Information
44. Significant
Impact
of
Cloud
Compu)ng
&
Mobile
to
Major
Firm
Service
Lines
Client
Audit
Tax
Accoun)ng
Efficiencies Efficiencies Transformative
Innovation Innovation Revenue Growth
Key Outcomes: Automation, collaboration, improved workflow,
processing efficiencies, improved quality of service
CPA2Biz, Inc. - Proprietary and Confidential Information
45. Client
Accoun)ng
Over
Past
20
Years
Today’s Opportunity
Today
ü Cloud based
ü Integrated
2000
ü Paperless
Small Businesses ü Dashboards
1990
push work back to
firms to focus more on ü Real Time
their business
Role of Firms Reduced
QuickBooks introduced Re-claiming of Client Accounting
to small businesses
& Trusted Advisor Role
CPA2Biz, Inc. - Proprietary and Confidential Information
46. Disrup)on
in
OUR
World
• Accoun=ng
is
on
cusp
of
disrup=on
• Freshbooks
/
Accountants
Relief
/
Xero
/
Wave,
etc.
• CPA2Biz
• Thomson
Reuters
/
CCH
/
Intuit
• Countdown
is
two
to
four
years
• PERSONAL
PREDICTION:
“By
2017
there
will
be
no
premise-‐based
soBware
leB
in
public
accounCng.”
CPA2Biz, Inc. - Proprietary and Confidential Information
47. Accoun)ng
Socware
Must
Scale
to
Firm
and
Client
Needs
Client
Accoun)ng
Services…
Advisory
Collabora)ve
Advisory
Services
–
Virtual
Virtual
CFO
Business
Process
Controllership
TransacConal
Outsourcing
Write-‐Up
Specialize in Client Industry Verticals
— Healthcare — Technology — Retail — Property Management
CPA2Biz, Inc. - Proprietary and Confidential Information
— Not-For-Profit — Professional Services — Franchises — Government Contractors
48. Driving
Adop)on
in
a
Digital
Age
Technology
Talent
Business
Change
Most significant
challenge
CPA2Biz, Inc. - Proprietary and Confidential Information
49. 40
Products
You
Should
Know
About
10
Prac)ce-‐specific
Products
10
Client-‐facing
Products
10
General
Financial
Products
10
General
Use
Products
CPA2Biz, Inc. - Proprietary and Confidential Information
50. Selected
Prac)ce-‐specific
Products
Available
Today
1. Global
Fx
6. Confirma=on.com
2. Intuit
Tax
Online
7. ProfitCents
3. XCM
8. GruntWorx
4. Firmflow
9. Beyond
415
5. GoSystem
Tax
10. AverQ
CPA2Biz, Inc. - Proprietary and Confidential Information
51. Selected
Prac)ce-‐specific
Products
Available
Today
1. Global
Fx
6. Confirma=on.com
2. Intuit
Tax
Online
7. ProfitCents
3. XCM
8. GruntWorx
4. Firmflow
9. Beyond
415
5. GoSystem
Tax
10. AverQ
CPA2Biz, Inc. - Proprietary and Confidential Information
52. Selected
Client-‐facing
Products
Available
Today
1. Quickbooks
Online
6. webKPI
2. Bill.com
7. Accountants
Relief
3. NetSuite
8. Xero
4. Wave
9. iLumen
5. Sure
Payroll
10. Intacct
CPA2Biz, Inc. - Proprietary and Confidential Information
53. Selected
Client-‐facing
Products
Available
Today
1. Quickbooks
Online
6. webKPI
2. Bill.com
7. Accountants
Relief
3. NetSuite
8. Xero
4. Wave
9. iLumen
5. Sure
Payroll
10. Intacct
CPA2Biz, Inc. - Proprietary and Confidential Information
54. Selected
General
Financial
Products
Available
Today
1. Mint.com
6. SalesForce.com
2. Personal
Capital
7. SuccessFactors
3. ExpenseCloud
8. FreshBooks
4. BoardVantage
9. Outright
5. Cortera
10. Prosper.com
CPA2Biz, Inc. - Proprietary and Confidential Information
55. Selected
General
Financial
Products
Available
Today
1. Mint.com
6. SalesForce.com
2. Personal
Capital
7. SuccessFactors
3. ExpenseCloud
8. FreshBooks
4. BoardVantage
9. Outright
5. Cortera
10. Prosper.com
CPA2Biz, Inc. - Proprietary and Confidential Information
56. Selected
General
Use
Products
Available
Today
1. Dropbox
6. TripIt
2. CPA.com
Backup
7. ShareFile
3. Google
Apps
8. LeapFile
4. MicroSom
365
9. YouSendIt
5. Find
My
Device(s)
10. SmartVault
Apple
Others
CPA2Biz, Inc. - Proprietary and Confidential Information
57. Selected
General
Use
Products
Available
Today
1. Dropbox
6. TripIt
2. CPA.com
Backup
7. ShareFile
3. Google
Apps
8. LeapFile
4. MicroSom
365
9. YouSendIt
5. Find
My
Device(s)
10. SmartVault
Apple
Others
CPA2Biz, Inc. - Proprietary and Confidential Information
59. Are
You
Losing
the
“Race
to
the
Cloud?”
7 Early Warning Signs
calling it SaaS
① You are using ASP and
l branding”
② Y ou have no formal “digita
strategy e server
③ You are op erating your own Exchang
ing accounting
④ You have not attended a lead
er a year.
technology conference in ov
staff are
⑤ Y our members and/or your
QuickBooks
complai ning about dealing with
files
der 30
⑥ You have no staff members un
ing at least 3
⑦ You aren ’t PERSONALLY us
SaaS services
CPA2Biz, Inc. - Proprietary and Confidential Information
60. A
Conference
Sugges)on
…
George Will Geoffrey Moore
The first-ever, cloud user conference brought
to you by the AICPA and our strategic
business solutions partners, will help
attendees embrace cloud technology as a
strategic opportunity to start or evolve their
client accounting services and tax practice
into the digital firm of tomorrow.
Barry Melancon Erik Asgeirsson
CPA2Biz, Inc. - Proprietary and Confidential Information
61. The
Digital
CPA
Cloud
User
Conference
Firm
Technology
Cloud
Compu=ng,
Mobile,
Social
Media,
Change
Management
Trends
Prac)ce
Building
a
Virtual
CFO
Prac=ce…Pricing
Development
Services,
Engagement
LeQers,
Staffing
Models,
Marke=ng
Best
Prac=ces
Tools
Accoun=ng
Somware,
Bill
Oct 28 - Oct 30, 2012
Hands-‐On
Management
and
Cash
Flow,
Tax,
Gaylord National, Washington, DC
Recommended CPE Credit: 19
Accoun=ng
&
Audi=ng
Workflow
User
Training
Automa=on
CPA2Biz, Inc. - Proprietary and Confidential Information
62. Thank
You
• To
learn
more
go
to
www.cpa.com
• White
papers,
case
studies,
etc.
• Educa=onal
webinars
• We’re
happy
to
speak
to
your
membership
–
please
contact
us
to
discuss
availability
for
2013!
CPA2Biz, Inc. - Proprietary and Confidential Information
63. Ques=ons
…..
CPA2Biz, Inc. - Proprietary and Confidential Information