2009 Professional Issues Update

1. 2009 CPA PROFESSION
UPDATE
Prepared for:
January 29 2009
29,
Tom Hood, CPA.CITP
CEO & Executive Director
Maryland Association of CPAs

2. “CPAs ARE the
DISCIPLINE in business!
business!”
Jim Collins

3. What is a Profession?
All professions involve technical, specialized
f i i l t hi l i li d
and highly skilled work. Training for this work
involves obtaining degrees and professional
q
qualifications without which entry to the
y
profession i b
f i is barred. T i i also requires
d Training l i
regular updating of skills.
Source: Wikipedia
Maryland CPAs are required to achieve the 4 E’s to
qualify for licensure
1. Education – bachelor’s degree + 30 hours
2.
2 Examination – Pass the Uniform CPA Exam
3. Ethics – Maryland requires a separate ethics exam
4. Experience – 1 year of experience working with a CPA
Thereafter, they are required t complete 80 h
Th ft th i d to lt hours of continuing
f ti i
education every two years, including four hours of ethics
training.

5. Economic Outlook
• National Outlook is not
bright
•EEconomists estimate 3Q
it ti t
2009 – 1st Q 2010 for
recovery
• Maryland outlook is much
better
• Top 5 states to recover the
fastest
• CPA Career one of the Top
10 recession-proof careers
• CPA firms below Top 8 are
p
continuing to see growth
www.cpasuccess.com – Economy category
p y gy

6. US Treasury
MD Comptroller
MD Comptroller
MD Comptroller
CAQ
Courtesy of the Maryland Association of CPAs – 2008 edition
Drawing by Carol Kirwan CPA

7. Infrastructure

8. Your Infrastructure is maintained by your Professional Associations
AICPA & State CPA societies (MACPA)
Pipeline – Workforce
Legislation – Regulation
Technology – Web 2.0

9. Pipeline - CPAs are SEXY!

10. Pipeline - Good News
p
20% avg increase in
Graduates & enrollments!

11. Pipeline
Primary College CPA Exam CPA MACPA Engaged
MACPA CPA
School Student Candidate CPA Retiree
Career Paths
Student NYPN
1,373 1,818 399 8,047
•Drive to
CPA Exam
•Reach
h
employment
influencers
•Career
changers
h

12. Four Generations in the Workplace
Issue: Generation Differences
• Matures – 1909-45
• Boomers – 1946 64
1946-64
• Gen X – 1965-80
• Millennials - 1981
Mill il
+ up (Y2K, Netgen,
Echo-boom,
Echo-boom
Gen Y)
Which one are you?

13. Why won t they sit?
won’t

14. CPA Exam changes
Then: Now:
• Paper-based • Computerized
• 2 x year May & • Anytime
November • 2 months per quarter
• 5 sections • Pass all sections in 18
months (to keep passed
sections)
• 4 sections
• 70% new content!

15. Steps to become a CPA
1. Get Accounting Education – 150 hours
2. Sit for & Complete CPA Exam
p
3. Take AICPA Ethics self-study & report
grades to State Board
4. Complete 2,000 hour experience
requirement (interning counts) RPE
form
5. Take the official oath at the Swearing-in
Ceremony

16. What you can do to promote
the
th CPA?
• Understand the “new” CPA Exam
– New Educational Requirements
• Encourage MACPA candidate
membership
b hi
• Use CPA Exam tracking tool to track
employees progress
• Support the swearing-in ceremony
• C t / reinforce firm/company culture
Create if fi / lt
that celebrates CPAs

17. Promote the CPA license
Maryland DLLR Swearing-in of new CPAs
June 16, 2009
At the Maryland Business & Accounting Expo

18. Biggest Issue Facing NYPNs
• Bridging the Gap between college & real world
• Under-Developed Skill Sets
– Leadership & Communication
– Ti
Time M
Management & Organization
tO i ti
– Analytical Skills
– Technical Skills
• Work-Life Balance
• Limited Networking Opportunities
g pp
• Intimidation
• CPA Exam
• Lack of a Voice in Profession

19. MACPA & Social Media
By 2010, Millenials/Gen Y-ers will
outnumber Baby Boomers
Boomers.

20. http://www.cpaisland.com

21. www.cpalearning2.com
Try this professional networking site
www.linkedin.com
www.CPALEARNING2.com

22. Infrastructure –
Legislation - Regulation

23. US Treasury
MD Comptroller
MD Comptroller
MD Comptroller
CAQ
Courtesy of the Maryland Association of CPAs – 2008 edition
Drawing by Carol Kirwan CPA

25. IFRS – International
Financial Reporting Standards
Not if but when…
Goodbye G GAAP?
Think about this – If SEC timeline is 2014 – what year
do you have to convert to show three years of
y y
comparable f/s?

26. History of CPA Legislation
KEY In the
Beginning...
Rights & Recognition
Max Teichman,
GOALS/ •Privilege of Self-
RESULTS Frank Blacklock &
Frank Blacklock & AG opinion of 1981
Regulation SB 560 Defeated
William Rogers Grants rights to non‐ Maryland Corporate
•Right to Sole Control CPAs for Reviews & Accountability Act
over an Area of Practice Comps. MACPA requests
HB 1296
reversal of AG Opinion
– “This is not an audit”
Mobility
language added
• CPA Bill signed April 10, 1900
Passes
PROJECTS/ MACPA wins use of
• MD is 3rd state (NY & PA)
• MD is 3 state (NY & PA)
STRATEGIES “consultants” in firm
letterhead at State
Board
State Board of
Accounting
Accountancy Reform task
formed Maryland Force
KEY EVENTS addresses
becomes the 1st
becomes the 1 SOX
HB 1261 re‐writes
state to restrict State Board Hearing
CPA Law ‐ 1986 May 1, 2003
practice for CPAs
MACPA amendments
to ed requirements fail
PEOPLE MACPA Forms Task Force and
New simpler CPA
p
surveys members
surveys members
exam Education Rules
88% Sub Equivalency
76% Peer Review & Safe Harbor
68% Non‐CPA Ownership
Terry Hancock
chairs Legislative
PRODUCTS/ Larry Kamanitz
Dawson Grove Committee Allen Deleon
SERVICES/ chairs Legislative
SITES chairs Legislative
g chairs Legislative
g
Committee
C itt
Committee Committee
Dateline
1900 1901 1922 1924 1974 1976 1981 1987 1993 1999 2001 2003 2005 2006 2007 2008
26
Maryland Association of CPAs

27. Leg / Reg Changes you
need to know!
 New Mobility Law
y
 Maryland Individual Tax Preparer Act
 New Corporate Reporting Requirements
 Peer Review Requirement – October 1st
 Prevent Sales Tax on Accounting & Tax Services
 S ff
Stop trial lawyers efforts at repealing contributory
fault doctrine
CPA Day in Annapolis
January 28, 2009

28. 2009 Maryland Agenda
Stop Sales Tax on
Accounting/tax/consulting services
Stop Tort Reform – Comparative
Negligence = frivolous lawsuits
Pass Technical C
P T h i l Corrections – CPE &
ti
Peer Review
St T P
Stop Tax Preparer li i h
licensing changes
Stay up-to-date at our blog at www.cpalegislativeinsider.com

29. New R
N Recession R
i Resources
• Special Economy webpage
• www.cpasuccess.com – Economy
• 24 Hours of Free CPE for all members
• Special Courses
• MDBIZEXPO dedicated to surviving &
thriving in this recession

30. MDBIZEXPO June 16th & 17th, 2009
t t

31. Financial Literacy
www.feedthepig.org
pg g
www.360financialliteracy.org

33. Connect – Protect - Achieve!
“Association members
Association
earn, on average, $10,000
more per year than non-
members”
And
“are 19% more likely to
say they are “very-
satisfied
satisfied” with their jobs
than non-members”
Where the Winners Meet Study by the
William E. Smith Institute for
Association Research

34. More ways t connect with MACPA
M to t ith
• Linked-In – MACPA Group
• Facebook – NYPN Group
• MACPA on Twitter
• Youtube videos from MACPA
• Tom on Twitter
• Slideshare
• Visit us in Second Life

35. Stay current with our blogs &
y g
podcasts
• CPA Success
http://www.cpasuccess.com
•NNew CPAS htt //
http://www.newcpas.com
• CPA Island – Free CPE events
http://www.cpaisland.com
http://www cpaisland com
• Self-guided social media learning
http://www.cpalearning2.com
http://www cpalearning2 com
• MACPA Podcasts
http://www.macpa.org/Content/23333.aspx
http://www macpa org/Content/23333 aspx

36. Tom Hood, CPA.CITP
CEO
Maryland Association of CPAs
Business Learning Institute
(443) 632 2301
632-2301
E-mail tom@macpa.org