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Norfolk	
  pines	
  
Captain	
  Cook	
  &	
  Norfolk	
  Pines	
  on	
  
Maui	
  
CPA FIRM TOP ISSUES
DIAGNOSTIC REPORT
FOR MACPA TOWN
HALL
American Institute of CPAs®
Private Companies Practice Section 8	
  
Carter Heim, CPA, MST, CFF
HeimLantz, CPAs & Advisors...
What is PCPS?
3
• $35/CPA,	
  max	
  $700	
  
Add-­‐on	
  firm	
  
membership	
  secCon	
  
of	
  the	
  AICPA	
  	
  
• Pa...
PCPS is the Home for Firms at the
AICPA
~	
  6,300	
  Firms	
  and	
  over	
  63,000	
  CPAs	
  Represented	
  
	
  
Sole	...
PCPS CPA Firm Top Issues Survey
5
•  Conducted	
  biannually	
  
	
  
•  Gathers	
  informaCon	
  from	
  pracCConers	
  a...
PCPS	
  CPA	
  Firm	
  Top	
  Issues	
  
Succession, succession, succession
Client retention and client acquisition remain...
THE PCPS CPA FIRM
2013 TOP ISSUES
DIAGNOSTIC
REPORT
Succession	
  Planning/	
  
Aging	
  of	
  Owners	
  &	
  
Partners	
 ...
PCPS CPA Firm Top Issues
FIRMS	
  WITH	
  6-­‐10	
  PROFESSIONALS	
   FIRMS	
  WITH	
  11-­‐20	
  PROFESSIONALS	
   FIRMS	...
15	
  
Succession Planning
PCPS Succession Resource Center1
• 54% without
written plan
• Leadership
development is
among the top
challenges
• 44% of firms
in M&A talks
• Few managing...
Chapters	
  include:	
  
1.  IntroducCon	
  
2.  Drivers	
  of	
  Change	
  for	
  the	
  CPA	
  Profession	
  
3.  PosiCo...
Succession Planning
Firm inMotion e-Toolkit 4
18	
  
•  Expanding	
  upon	
  the	
  CPA	
  Horizons	
  2025	
  Report,	
  ...
Succession Planning
Transition Continuum and Checklist5
19	
  
June 2016 at AICPA offices
in New York, NY and Durham, NC
Leadership Training
Develop the full potential of new
and emergi...
THE PCPS CPA FIRM
2013 TOP ISSUES
DIAGNOSTIC
REPORT
Human	
  Capital	
  
Concerns	
  
	
  	
  	
  
Finding	
  and	
  Retai...
PCPS CPA Firm Top Issues
FIRMS	
  WITH	
  6-­‐10	
  PROFESSIONALS	
   FIRMS	
  WITH	
  11-­‐20	
  PROFESSIONALS	
   FIRMS	...
Human	
  Capital	
  Concerns	
  
What	
  Are	
  Other	
  Firms	
  Doing?	
  
•  Hiring	
  veterans	
  or	
  parents	
  ret...
Human	
  Capital	
  Concerns	
  
Finding	
  Talent	
  Without	
  Leaving	
  the	
  Office	
  
•  PCPS	
  partnership	
  with...
Team
Recruitment
Action Plan15
Sample
Recruitment
Promotion16
Firm Needs
Assessment17
Interview
Questions18
Firm Value
Pro...
ASSOCIATE
• Learns and
develops technical
competence by
completing a
degree qualification
and working toward
CPA certifica...
27	
  
Human	
  Capital	
  Concerns	
  
RecruiCng	
  Brochures9	
  
THE PCPS CPA FIRM
2013 TOP ISSUES
DIAGNOSTIC
REPORT
Seasonality/	
  
Workload	
  
Compression	
  
PCPS CPA Firm Top Issues
FIRMS	
  WITH	
  6-­‐10	
  PROFESSIONALS	
   FIRMS	
  WITH	
  11-­‐20	
  PROFESSIONALS	
   FIRMS	...
Seasonality/Workload	
  Compression	
  
PCPS	
  PublicaCons10	
  
30	
  
Client Disengagement Letter12
Client EvaluationTool11
31	
  
Seasonality/Workload Compression
Client Evaluations
32	
  
Seasonality/Workload Compression
Automated Workflow13
Silver
($X,XXX)
•  Preparation of
corporate income tax
returns
•  Preparation of
individual income tax
returns for owner(s...
THE PCPS CPA FIRM
2013 TOP ISSUES
DIAGNOSTIC
REPORT
Keeping	
  Up	
  	
  
	
  	
  	
  
Changes/Complexity	
  
of	
  Tax	
 ...
PCPS CPA Firm Top Issues
FIRMS	
  WITH	
  6-­‐10	
  PROFESSIONALS	
   FIRMS	
  WITH	
  11-­‐20	
  PROFESSIONALS	
   FIRMS	...
 
•  Webcasts	
  
–  Washington	
  Tax	
  Brief	
  14	
  
–  Tax	
  Power	
  Hour	
  15	
  
•  Resources	
  
–  Tax	
  Pra...
•  Health	
  Care	
  Reform	
  
Resource	
  Center	
  
19	
  
	
  
•  PCPS	
  toolkit	
  includes:	
  
•  Strategy	
  chec...
THE PCPS CPA FIRM
2013 TOP ISSUES
DIAGNOSTIC
REPORT
Client	
  AcquisiAon	
  
and	
  RetenAon	
  
PCPS CPA Firm Top Issues
FIRMS	
  WITH	
  6-­‐10	
  PROFESSIONALS	
   FIRMS	
  WITH	
  11-­‐20	
  PROFESSIONALS	
   FIRMS	...
•  Educate	
  —	
  Preparing	
  you	
  (and	
  staff)	
  to	
  understand	
  and	
  arCculate	
  
the	
  value	
  of	
  you...
Client	
  AcquisiCon	
  and	
  
RetenCon	
  
You	
  Are	
  The	
  Value	
  Online	
  Workshop24	
  
41	
  
Action Result
Product
Champion
Deadline Completed
1
Examine current margins and
test various price increase
scenarios
Iden...
THE PCPS CPA FIRM
2013 TOP ISSUES
DIAGNOSTIC
REPORT
Owner/Partner	
  
Accountability	
  and	
  
Unity	
  
PCPS CPA Firm Top Issues
FIRMS	
  WITH	
  6-­‐10	
  PROFESSIONALS	
   FIRMS	
  WITH	
  11-­‐20	
  PROFESSIONALS	
   FIRMS	...
American Institute of CPAs®
Private Companies Practice Section
Owner/Partner Accountability and Unity
Partner Accountabili...
American Institute of CPAs®
Private Companies Practice Section
Owner/Partner Accountability and Unity
CPA Horizons 2025 To...
Top	
  Issues	
  —	
  Other	
  Firm	
  
Concerns	
  
Identity theft and working with the IRS continue to
be a struggle
Tec...
THE PCPS CPA FIRM
2013 TOP ISSUES
DIAGNOSTIC
REPORT
Financial	
  Benchmarking	
  
&	
  	
  
Tracking	
  
  DO	
  choose	
  a	
  benchmarking	
  survey	
  
  DO	
  understand	
  the	
  input	
  methodology	
  and	
  
definiCons	
...
  RealizaCon	
  (net	
  billed/gross	
  work	
  in	
  process)	
  
–  Measure	
  of	
  billing	
  efficiency/profitability	
 ...
Financial	
  Benchmarking	
  &	
  Tracking	
  
AICPA	
  PCPS/TSCPA	
  NaConal	
  MAP	
  Survey34	
  
•  National results s...
Column1
<200K
2012
<200K
2014
200<500K
2012
200<500K
2014
500<750K
2012
500<750K
2014
Partners/Owners 126 125 160 160 180 ...
Financial Benchmarking & Tracking
From the Platform: Billing Rates by position
54	
  
Consider	
  Joining	
  a	
  PCPS	
  Community36	
  
	
  
Women’s
Networking
Group
Trusted Client
Adviser
Alumni
THE PCPS CPA FIRM
2013 TOP ISSUES
DIAGNOSTIC
REPORT
Questions?
THE PCPS CPA FIRM
2013 TOP ISSUES
DIAGNOSTIC
REPORT
Thank You!
Please Contact Us!
PCPS Team pcps@aicpa.org
800.CPA.FIRM
#A...
Norfolk	
  pines	
  
Captain	
  Cook	
  &	
  Norfolk	
  Pines	
  on	
  
Maui	
  
AICPA	
  Council	
  -­‐	
  Maryland	
  
DelegaCon	
  
91%	
  
	
  
Of	
  firms	
  expect	
  to	
  
con[nue	
  record	
  hiring	
  
levels	
  
16%	
  
	
  
Projected	
  accoun[ng...
Maryland	
  
NaConal	
  
Leadership	
  
1.  Lyle	
  Benson	
  
2.  Wayne	
  Berson	
  
3.  Ed	
  Karl	
  
4.  Jody	
  Pada...
Kimberly	
  Ellison-­‐
Taylor	
  Chair-­‐elect	
  
of	
  AICPA	
  
MACPA	
  Past	
  Chair	
  
LookoutPost
Context!
Certainty!
Capacity!
Competency!
Core Beliefs!
Context!
Gradual then Sudden!
Exponential growth fueled by Technology (Moore’s Law)!
Moore’s	
  Law	
  visualized	
  
25,600	
  Times	
  
More	
  Storage	
  
ExponenCal	
  Times	
  
Value	
  of	
  Smartphone	
  &	
  Apps	
  
More Uber cars than yellow taxis on the road in NYC
AirBnB Rooms available surpasses Hilton & Marriott
Gradual then Sudden
92% of CPAs
are!
NOT
Future Ready!!
Future Ready is the
capacity to be aware,
predictive, and adaptive of
emerging challen...
'If the rate of change on the outside
exceeds the rate of change on the inside,
the end is near.’ – Jack Welch
Will your job be done by a machine?
Source: NPR Planet Money, May, 2015
Certainty!
ANTICIPATION	
  
Strategic	
  Thinking	
  
External	
  Awareness	
  
Vision	
  
ConCnuous	
  Learning	
  
InnovaCon	
  
Cr...
Legislative / Regulatory / Standards
Federal
•  Tax Due Dates changes
•  Mobile Workforce legislation
Federal Regulators
•...
Mobile workforce
Patent holding companies
* DOL overtime
* Cash basis
* IRS Service Levels
* Top Priorities of Maryland
Ma...
DOL	
  ALERT	
  
“The	
  DOL	
  will	
  ask	
  for	
  stakeholder	
  support,	
  and	
  will	
  strongly	
  encourage	
  s...
On April 13th at 11:49pm Supersedeas Bond Bill passed the !
House of Delegates 118 – 19, the last bill to be heard!
On January 13th, 2016, the 436th Maryland General Assembly will !
convene its 90-day session and188 legislators (47 Senato...
We defeated this FIVE times in 1997, 2001, 2004, 2007, 2012 !
“Contributory negligence” is negligent conduct on the part of the plaintiff/injured party
contributes to the negligence of...
Legislative / Regulatory / Standards
State Board
•  Positioning for Firm Mobility
•  CPE tracking and audits
•  Proposing ...
Federal vs State laws!
State Board Guidance!
Resources: aicpa.org/marijuana!
MD State Board issued guidance – !
October, 2...
Senator Brian Feldman, CPA (D- Montgomery Co.) signed on !
to sponsor our Appeal Bond Small Business Cap!
CPA	
  Day	
  in	
  Annapolis	
  –	
  January	
  21,	
  	
  2016	
  
“if you don’t have time to participate in the legisla...
•  Closes loophole for non-CPAs to perfor
m attest services!
•  Includes all examinations and AUP !
•  with SSAEs (XBRL, s...
Those	
  who	
  build	
  great	
  companies	
  
understand	
  that	
  the	
  ulCmate	
  throrle	
  
on	
  growth	
  for	
 ...
Bachelor's	
  &	
  Master’s	
  in	
  AccounCng	
  
Source:	
  AICPA	
  2015	
  Trends	
  in	
  Supply	
  &	
  Demand	
  	
...
Source:	
  Updated	
  2015	
  Trends	
  Report	
  data	
  
What’s	
  driving	
  our	
  pipeline	
  concerns?	
  
MACPA	
  Leadership	
  Academy	
  –	
  August,	
  2015	
  
Next	
  class	
  –	
  August	
  24-­‐26,	
  2016	
  	
  
MACPA	
  Student	
  Leadership	
  Academy	
  –	
  June,	
  2015	
  
Next	
  class	
  –	
  June	
  2-­‐4,	
  2016	
  	
  
New	
  CPAs	
  	
  
Swearing-­‐in	
  Ceremony	
  
November	
  10,	
  2015	
  
Hilton	
  BWI	
  Hotel	
  
6:30pm	
  –	
  9:...
Guide	
  for	
  Becoming	
  a	
  CPA	
  
www.cpaguide.macpa.org	
  
American Institute of CPAs®
The AICPA Proposal:
Joining forces to protect,
promote and grow an evolving
accounting profess...
American Institute of CPAs®
B&I members comprise approximately 40% of AICPA
membership
•  Historically under-served member...
104
American Institute of CPAs®
More can be achieved
By partnering more fully, the AICPA and CIMA believe they can:
Drive grea...
American Institute of CPAs®
1 in 3 accounting graduates become CPAs
Sources: NASBA, Bureau of Labor Statistics, Department...
American Institute of CPAs®
Top1 accounting firm talent is increasingly
becoming broader than CPAs
128K	
  
139K	
  
154K	...
Confidential – Internal Use Only 109
U.S. students have greater international
exposure
Source: Institute of International ...
American Institute of CPAs®
U.S. influence on the international profession
projected to decrease
* Numbers based on organi...
American Institute of CPAs®
International accounting bodies are
competing for relevance
Merged to form a combined institut...
American Institute of CPAs®
International accounting bodies are
competing for relevance
The Institute of Singapore Charter...
American Institute of CPAs®
CIMA is the right partner
World’s largest and leading professional body solely
focused on mana...
American Institute of CPAs®
Together, the AICPA and CIMA further
professionalized management accounting
PerformanceValue &...
American Institute of CPAs®
Evolving the relationship
Evolution of the JV
American Institute of CPAs®
Next step in the journey
Maintain the two membership bodies – AICPA and CIMA –while
integratin...
GeneraCon	
  Z	
  
Belicia	
  Cespedes,	
  
CPA	
  
	
  
	
  
Youngest	
  CPA	
  in	
  
the	
  Profession	
  
What	
  year	
  is	
  this	
  quote	
  from?	
  
“Our	
  youth	
  now	
  love	
  luxury.	
  They	
  have	
  bad	
  
manner...
Capacity!
TheTop 6 Ways to Create Capacity in
your Firm
•  Maximize software & tools you have
•  Use the latest and most efficient te...
•  Purpose
•  Career
Development
•  Strengths	
  
www.blionline.org
www.blionline.org
The BLI Magnetic
Firm Framework
Creating the Magnetic Firm
Purpose
Driven
Great
Leadership
Culture
Of Growth
Inspiring
Workplace
Vision, Purpose and
Value...
Grow	
  your	
  people,	
  grow	
  your	
  firm!	
  
Use	
  learning	
  as	
  a	
  strategic	
  weapon	
  in	
  the	
  war	...
Now
What?!
Competency!
www.blionline.org
Maryland Public Company Collaboration
Top Four Issues
1.  Learning & Talent Development
2.  Global Structure of Finance
Fu...
ANTICIPATION	
  
Strategic	
  Thinking	
  
External	
  Awareness	
  
Vision	
  
ConCnuous	
  Learning	
  
InnovaCon	
  
Cr...
http://www.blionline.org/ao
Core Beliefs!
Integrity	
  
Competence	
  
Lifelong	
  learning	
  
ObjecCvity	
  
Commitment	
  to	
  excellence	
  
Protect	
  the	
  ...
Calendar!
Tom Hood, CPA, CITP, CGMA
•  CPA Practice Adviser Accounting Hall of
Fame
•  Named the Second Most Influential in
Accounti...
American Institute of CPAs®
Private Companies Practice Section
Visit aicpa.org/PCPS
146	
  
Check out the spotlight sectio...
American Institute of CPAs®
Private Companies Practice Section
Index of Links
1. Succession Planning PCPS Succession Resou...
American Institute of CPAs®
Private Companies Practice Section
Index of Links (continued)
7. Human Capital Concerns PCPS H...
American Institute of CPAs®
Private Companies Practice Section
Index of Links (continued)
14. Keeping Up Washington Tax Br...
American Institute of CPAs®
Private Companies Practice Section
Index of Links (continued)
22. Client Acquisition and Reten...
American Institute of CPAs®
Private Companies Practice Section
Index of Links (continued)
29. Technical Developments Cente...
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
MACPA Fall Town Hall / Professional Issues Update - 2015
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MACPA Fall Town Hall / Professional Issues Update - 2015

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In an effort to help our members be "future ready", MACPA has continued its tradition (since 2007) of holding four hour comprehensive professional issues updates for FREE all across the state of Maryland. Tom Hood, CPA, CITP, CGMA leads these engaging and participative sessions and covers the fast changing landscape of the accounting and CPA Profession. This year we added special guest from AICPA PCPS to discuss more resources for CPA firms and a special discussion of the AICPA-CIMA Joint Venture and the CGMA designation. Also included is the groundbreaking new learning system The Anticipatory Organization: Accounting and Finance Edition from Dan Burrus and customized with a group of accounting and finance professionals convened by MACPA and BLI.

Veröffentlicht in: Business

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MACPA Fall Town Hall / Professional Issues Update - 2015

  1. / Thank You to Our Sponsors
  2. Your Learning Journey
  3. Vote for a question Respond to Poll Ask a Question MACPA.CNF.IO Select your session and join the conversation: Fall Town Hall PIU
  4. Download today’s slides at … www.SlideShare.net/thoodcpa
  5. Norfolk  pines   Captain  Cook  &  Norfolk  Pines  on   Maui  
  6. CPA FIRM TOP ISSUES DIAGNOSTIC REPORT FOR MACPA TOWN HALL
  7. American Institute of CPAs® Private Companies Practice Section 8   Carter Heim, CPA, MST, CFF HeimLantz, CPAs & Advisors 410-841-557 Carter.Heim@HeimLantz.com PCPS Superheroes Jeanie Price, AAAPM DeLeon & Stang, CPAs & Advisors 301-948-9825 Jeanie@DeLeonandStang.com
  8. What is PCPS? 3 • $35/CPA,  max  $700   Add-­‐on  firm   membership  secCon   of  the  AICPA     • Passionate  about  providing  firms  support  for:   • keeping  up  with  changes  in  standards/regs   • strategies  in  ploLng  the  firm’s  direcCon   • the  everyday  intricacies  of  running  a  pracCce   PCPS  comprises  of  a   team  of  experienced   CPAs     • This  knowledge  is  foundaConal  to  the  turnkey   tools  and  soluCons  that  PCPS  delivers   PCPS  engages  with   CPAs  to  understand   the  pain  points.  
  9. PCPS is the Home for Firms at the AICPA ~  6,300  Firms  and  over  63,000  CPAs  Represented     Sole   PracCConers   2-­‐5  CPAs   6-­‐10  CPAs   11-­‐20  CPAs   21+  CPAs   10  
  10. PCPS CPA Firm Top Issues Survey 5 •  Conducted  biannually     •  Gathers  informaCon  from  pracCConers  across   the  country  represenCng  firms  of  different   sizes     •  Used  to  understand  the  criCcal  challenges   facing  PCPS  member  firms  
  11. PCPS  CPA  Firm  Top  Issues   Succession, succession, succession Client retention and client acquisition remain a priority Human capital concerns are back — finding and retaining qualified staff are in the top five for all firm sizes with more than two professionals Keeping up with tax laws and new rules and regulations are the biggest concerns for small firms Seasonality and workload compression is now a concern for all firm sizes Owner/partner accountability and unity remain issues for larger firms 12  
  12. THE PCPS CPA FIRM 2013 TOP ISSUES DIAGNOSTIC REPORT Succession  Planning/   Aging  of  Owners  &   Partners      
  13. PCPS CPA Firm Top Issues FIRMS  WITH  6-­‐10  PROFESSIONALS   FIRMS  WITH  11-­‐20  PROFESSIONALS   FIRMS  WITH  21+  PROFESSIONALS   1 FINDING  QUALIFIED  STAFF     1 RETAINING  QUALIFIED  STAFF   1 RETAINING  QUALIFIED  STAFF   2 SUCCESSION  PLANNING   2 FINDING  QUALIFIED  STAFF     2 FINDING  QUALIFIED  STAFF     3 SEASONALITY/WORKLOAD   COMPRESSION   3 SUCCESSION  PLANNING   3 OWNER/PARTNER  ACCOUNTABILITY  &   UNITY   4 RETAINING  QUALIFIED  STAFF   4 BRINGING  IN  NEW  CLIENTS   4 SEASONALITY/WORKLOAD   COMPRESSION   5 AGING  OF  OWNERS/PARTNERS   5 SEASONALITY/WORKLOAD   COMPRESSION   5 BRINGING  IN  NEW  CLIENTS;   SUCCESSION  PLANNING  (TIE)   SOLE  PRACTITIONERS   1 KEEPING  UP  WITH  CHANGES  AND   COMPLEXITY  OF  TAX  LAWS   2 SEASONALITY/WORKLOAD   COMPRESSION   3 THE  EFFECT  ON  FIRMS  CAUSED  BY  NEW   REGULATIONS  &  STANDARDS   4 SUCCESSION  PLANNING   5 RETENTION  OF  CURRENT  CLIENTS     FIRMS  WITH  2-­‐5  PROFESSIONALS   1 FINDING  QUALIFIED  STAFF     2 KEEPING  UP  WITH  CHANGES  AND   COMPLEXITY  OF  TAX  LAWS   3 SUCCESSION  PLANNING   4 SEASONALITY/WORKLOAD   COMPRESSION   5 THE  EFFECT  ON  FIRMS  CAUSED  BY  NEW   REGULATIONS  &  STANDARDS   14  
  14. 15   Succession Planning PCPS Succession Resource Center1
  15. • 54% without written plan • Leadership development is among the top challenges • 44% of firms in M&A talks • Few managing partners have ability to hold partners accountable Multi- Owner Firms • 94% without practice continuation agreement • 39% intend to merge or sell • Half expect to sell $1 for $1 of billings, actual is likely much less Sole Owners 16   Succession Planning PCPS Succession Survey2
  16. Chapters  include:   1.  IntroducCon   2.  Drivers  of  Change  for  the  CPA  Profession   3.  PosiConing  Your  Firm   4.  Selling  Your  Firm   5.  Merging  Your  Firm   6.  Developing  New  Leaders   7.  Turning  Out  the  Lights   8.  TransiCon  Roles  and    ResponsibiliCes   9.  What  is  the  Value  of  Your  Firm   10.  Due  Diligence   11.  Key  Elements  to  a  Partnership  Agreement   Available   tools   Transfer an Accounting Practice Checklist Due Diligence Checklist Shareholder in Training Checklist Sample Practice Continuation Agreement 17   Succession Planning Succession Planning Guide & Tools3 Available Tools
  17. Succession Planning Firm inMotion e-Toolkit 4 18   •  Expanding  upon  the  CPA  Horizons  2025  Report,  this   toolkit  help  firms:   –  Stay  on  top  of  new  and  emerging  trends     –  Embrace  generaConal  differences     –  ConCnue  to  meet  client   needs  and  expectaCons     •  Five  secCons   –  Firm  Structure  &  Strategy   –  Use  of  Technology   –  Clients  &  RelaConship   Building   –  Staff  Development  &   Structure   –  GlobalizaCon  
  18. Succession Planning Transition Continuum and Checklist5 19  
  19. June 2016 at AICPA offices in New York, NY and Durham, NC Leadership Training Develop the full potential of new and emerging partners by preparing them for responsibility and leadership Who Should Attend? •  Managers on the firm partner track •  New Partners/Owners (five or fewer years of experience) •  Practice leaders seeking partnership skills Succession Planning Emerging Partner Training Forum 20  
  20. THE PCPS CPA FIRM 2013 TOP ISSUES DIAGNOSTIC REPORT Human  Capital   Concerns         Finding  and  Retaining   Qualified  Staff  
  21. PCPS CPA Firm Top Issues FIRMS  WITH  6-­‐10  PROFESSIONALS   FIRMS  WITH  11-­‐20  PROFESSIONALS   FIRMS  WITH  21+  PROFESSIONALS   1 FINDING  QUALIFIED  STAFF     1 RETAINING  QUALIFIED  STAFF   1 RETAINING  QUALIFIED  STAFF   2 SUCCESSION  PLANNING   2 FINDING  QUALIFIED  STAFF     2 FINDING  QUALIFIED  STAFF     3 SEASONALITY/WORKLOAD   COMPRESSION   3 SUCCESSION  PLANNING   3 OWNER/PARTNER  ACCOUNTABILITY  &   UNITY   4 RETAINING  QUALIFIED  STAFF   4 BRINGING  IN  NEW  CLIENTS   4 SEASONALITY/WORKLOAD   COMPRESSION   5 AGING  OF  OWNERS/PARTNERS   5 SEASONALITY/WORKLOAD   COMPRESSION   5 BRINGING  IN  NEW  CLIENTS;   SUCCESSION  PLANNING  (TIE)   SOLE  PRACTITIONERS   1 KEEPING  UP  WITH  CHANGES  AND   COMPLEXITY  OF  TAX  LAWS   2 SEASONALITY/WORKLOAD   COMPRESSION   3 THE  EFFECT  ON  FIRMS  CAUSED  BY  NEW   REGULATIONS  &  STANDARDS   4 SUCCESSION  PLANNING   5 RETENTION  OF  CURRENT  CLIENTS     FIRMS  WITH  2-­‐5  PROFESSIONALS   1 FINDING  QUALIFIED  STAFF     2 KEEPING  UP  WITH  CHANGES  AND   COMPLEXITY  OF  TAX  LAWS   3 SUCCESSION  PLANNING   4 SEASONALITY/WORKLOAD   COMPRESSION   5 THE  EFFECT  ON  FIRMS  CAUSED  BY  NEW   REGULATIONS  &  STANDARDS   22  
  22. Human  Capital  Concerns   What  Are  Other  Firms  Doing?   •  Hiring  veterans  or  parents  returning  to  the  workforce     •  ConnecCng  with  local  schools  and  beginning  an   internship  process   –  PCPS  Internship  Quick  Start  Guide6     •  GeLng  involved  and  parCcipaCng  on  college  boards   •  Providing  flexible  hours  and  telecommuCng  opCons   •  Partnering  with  local  firms  and  sharing  CPAs   and  interns       23  
  23. Human  Capital  Concerns   Finding  Talent  Without  Leaving  the  Office   •  PCPS  partnership  with  AccounCngfly  provides  firms  with   virtual  recruiCng  year  round   •  Build  a  free  firm  profile  on  AccounCngfly’s  accounCng-­‐ specific  online  job  board   •  ParCcipate  in  Meet  the  Firms  Week     –  October  19-­‐23,  2015   –  Firms  that  create  profiles  are  eligible  to  parCcipate  for  free   –  Internships  and  entry-­‐level  jobs  are  promoted  to  all   parCcipaCng  students  that  are  interested  in  working  for  a   local  firm   –  Webcasts  promote  parCcipaCng  firms  and  their  open   posiCons  to  candidates  throughout  the  week   24  
  24. Team Recruitment Action Plan15 Sample Recruitment Promotion16 Firm Needs Assessment17 Interview Questions18 Firm Value Proposition19 Finding Qualified Staff Firm Competency Model20 Six Motivators Calculation Tool21 Flexibility Program Guide22 Mentoring Guide23 Performance Management Templates24 Retaining Qualified Staff 25   Human  Capital  Concerns   PCPS  Human  Capital  Resource  Center7  
  25. ASSOCIATE • Learns and develops technical competence by completing a degree qualification and working toward CPA certificate • Applies self diligently to learn and understand technical skills and on the job practices and business processes • Researches technical issues and participates in technical discussions relating to client assignments • Develops an understanding of client businesses SENIOR • Has technical competence (degree qualification) and a relevant professional accreditation • Has an identified area to specialize and refines skills, knowledge and expertise • Applies technical knowledge and research in formulating client related recommendations • Helps to solve complex business problems MANAGER • Has a general knowledge and application of relevant professional standards, emerging laws and regulations and corporate governance requirements • Refines skills, knowledge and expertise as a specialist in an identified technical field and/or industry • Applies technical expertise and interprets laws, regulations and standards to formulate client related recommendations • Solves complex business problems SENIOR MANAGER/ DIRECTOR • Has a good understanding of the prevailing business environment, industry and business processes • Has a thorough knowledge and application of relevant professional standards, emerging laws and regulations and corporate governance requirements • Is a specialist in a particular technical field and/or industry • Abreast of changes in laws, regulations and standards and provides advice on the impact and implications to clients PARTNER • Has a thorough understanding of the prevailing business environment, industry and business processes • Has extensive knowledge and application of relevant professional standards, emerging laws and regulations and corporate governance requirements • Is a specialist and known leader in a particular technical field and/or industry • Actively seeks ways to apply knowledge, interpret and anticipate changes in laws, regulations and standards to provide advice to clients on the impact and implications 26   Human  Capital  Concerns   Firm  Competency  Model  (Career  Ladder)8  
  26. 27   Human  Capital  Concerns   RecruiCng  Brochures9  
  27. THE PCPS CPA FIRM 2013 TOP ISSUES DIAGNOSTIC REPORT Seasonality/   Workload   Compression  
  28. PCPS CPA Firm Top Issues FIRMS  WITH  6-­‐10  PROFESSIONALS   FIRMS  WITH  11-­‐20  PROFESSIONALS   FIRMS  WITH  21+  PROFESSIONALS   1 FINDING  QUALIFIED  STAFF     1 RETAINING  QUALIFIED  STAFF   1 RETAINING  QUALIFIED  STAFF   2 SUCCESSION  PLANNING   2 FINDING  QUALIFIED  STAFF     2 FINDING  QUALIFIED  STAFF     3 SEASONALITY/WORKLOAD   COMPRESSION   3 SUCCESSION  PLANNING   3 OWNER/PARTNER  ACCOUNTABILITY  &   UNITY   4 RETAINING  QUALIFIED  STAFF   4 BRINGING  IN  NEW  CLIENTS   4 SEASONALITY/WORKLOAD   COMPRESSION   5 AGING  OF  OWNERS/PARTNERS   5 SEASONALITY/WORKLOAD   COMPRESSION   5 BRINGING  IN  NEW  CLIENTS;   SUCCESSION  PLANNING  (TIE)   SOLE  PRACTITIONERS   1 KEEPING  UP  WITH  CHANGES  AND   COMPLEXITY  OF  TAX  LAWS   2 SEASONALITY/WORKLOAD   COMPRESSION   3 THE  EFFECT  ON  FIRMS  CAUSED  BY  NEW   REGULATIONS  &  STANDARDS   4 SUCCESSION  PLANNING   5 BRINGING  IN  NEW  CLIENTS     FIRMS  WITH  2-­‐5  PROFESSIONALS   1 FINDING  QUALIFIED  STAFF     2 KEEPING  UP  WITH  CHANGES  AND   COMPLEXITY  OF  TAX  LAWS   3 SUCCESSION  PLANNING   4 SEASONALITY/WORKLOAD   COMPRESSION   5 THE  EFFECT  ON  FIRMS  CAUSED  BY  NEW   REGULATIONS  &  STANDARDS   29  
  29. Seasonality/Workload  Compression   PCPS  PublicaCons10   30  
  30. Client Disengagement Letter12 Client EvaluationTool11 31   Seasonality/Workload Compression Client Evaluations
  31. 32   Seasonality/Workload Compression Automated Workflow13
  32. Silver ($X,XXX) •  Preparation of corporate income tax returns •  Preparation of individual income tax returns for owner(s) •  Corporate tax planning •  Personal tax planning for owner(s) •  QuickBooks assistance •  Annual financial statement compilations •  Two meetings with practitioner Gold ($X,XXX) •  All silver tier items, PLUS: •  Semi-annual financial statement compilations •  Four meetings with practitioner •  Unlimited telephone support •  Development of a company strategic plan •  Evaluation or development of the personal financial plan of the owner(s) Platinum ($X,XXX) •  All gold tier items, PLUS: •  Quarterly financial statement compilations •  Full internal control review and recommendations •  Strategic planning retreat for the company •  An estate planning meeting with the owner(s) and development of a comprehensive estate plan 33   Seasonality/Workload Compression Three Tier Pricing Excerpted from the Pricing Tool in the TCA Toolbox
  33. THE PCPS CPA FIRM 2013 TOP ISSUES DIAGNOSTIC REPORT Keeping  Up           Changes/Complexity   of  Tax  Laws  and   Federal/State  Regulations  
  34. PCPS CPA Firm Top Issues FIRMS  WITH  6-­‐10  PROFESSIONALS   FIRMS  WITH  11-­‐20  PROFESSIONALS   FIRMS  WITH  21+  PROFESSIONALS   1 FINDING  QUALIFIED  STAFF     1 RETAINING  QUALIFIED  STAFF   1 RETAINING  QUALIFIED  STAFF   2 SUCCESSION  PLANNING   2 FINDING  QUALIFIED  STAFF     2 FINDING  QUALIFIED  STAFF     3 SEASONALITY/WORKLOAD   COMPRESSION   3 SUCCESSION  PLANNING   3 OWNER/PARTNER  ACCOUNTABILITY  &   UNITY   4 RETAINING  QUALIFIED  STAFF   4 BRINGING  IN  NEW  CLIENTS   4 SEASONALITY/WORKLOAD   COMPRESSION   5 AGING  OF  OWNERS/PARTNERS   5 SEASONALITY/WORKLOAD   COMPRESSION   5 BRINGING  IN  NEW  CLIENTS;   SUCCESSION  PLANNING  (TIE)   SOLE  PRACTITIONERS   1 KEEPING  UP  WITH  CHANGES  AND   COMPLEXITY  OF  TAX  LAWS   2 SEASONALITY/WORKLOAD   COMPRESSION   3 THE  EFFECT  ON  FIRMS  CAUSED  BY  NEW   REGULATIONS  &  STANDARDS   4 SUCCESSION  PLANNING   5 BRINGING  IN  NEW  CLIENTS     FIRMS  WITH  2-­‐5  PROFESSIONALS   1 FINDING  QUALIFIED  STAFF     2 KEEPING  UP  WITH  CHANGES  AND   COMPLEXITY  OF  TAX  LAWS   3 SUCCESSION  PLANNING   4 SEASONALITY/WORKLOAD   COMPRESSION   5 THE  EFFECT  ON  FIRMS  CAUSED  BY  NEW   REGULATIONS  &  STANDARDS   35  
  35.   •  Webcasts   –  Washington  Tax  Brief  14   –  Tax  Power  Hour  15   •  Resources   –  Tax  PracCce  Resources     Webpage  16   •  Up-­‐to-­‐date  InformaCon   –  Tax  E-­‐Alert  17   Specialized  Guidance   –  Tax  IdenCty  Thep              InformaCon  &  Tools18       Keeping Up AICPA Tax Section 36  
  36. •  Health  Care  Reform   Resource  Center   19     •  PCPS  toolkit  includes:   •  Strategy  checklist   •  Customizable  brochures  for   individual  clients  and  small   and  large  business  clients   •  Timelines  including   important  provisions   and  effecCve  dates   •  ImplicaCons  of  the  law  for   individuals  and  business  clients   •  Ways  that  CPAs  can  assist  clients    •      Staff  training  and  client  PowerPoint  templates       Keeping Up Health Care 37  
  37. THE PCPS CPA FIRM 2013 TOP ISSUES DIAGNOSTIC REPORT Client  AcquisiAon   and  RetenAon  
  38. PCPS CPA Firm Top Issues FIRMS  WITH  6-­‐10  PROFESSIONALS   FIRMS  WITH  11-­‐20  PROFESSIONALS   FIRMS  WITH  21+  PROFESSIONALS   1 FINDING  QUALIFIED  STAFF     1 RETAINING  QUALIFIED  STAFF   1 RETAINING  QUALIFIED  STAFF   2 SUCCESSION  PLANNING   2 FINDING  QUALIFIED  STAFF     2 FINDING  QUALIFIED  STAFF     3 SEASONALITY/WORKLOAD   COMPRESSION   3 SUCCESSION  PLANNING   3 OWNER/PARTNER  ACCOUNTABILITY  &   UNITY   4 RETAINING  QUALIFIED  STAFF   4 BRINGING  IN  NEW  CLIENTS   4 SEASONALITY/WORKLOAD   COMPRESSION   5 AGING  OF  OWNERS/PARTNERS   5 SEASONALITY/WORKLOAD   COMPRESSION   5 BRINGING  IN  NEW  CLIENTS;   SUCCESSION  PLANNING  (TIE)   SOLE  PRACTITIONERS   1 KEEPING  UP  WITH  CHANGES  AND   COMPLEXITY  OF  TAX  LAWS   2 SEASONALITY/WORKLOAD   COMPRESSION   3 THE  EFFECT  ON  FIRMS  CAUSED  BY  NEW   REGULATIONS  &  STANDARDS   4 SUCCESSION  PLANNING   5 BRINGING  IN  NEW  CLIENTS   FIRMS  WITH  2-­‐5  PROFESSIONALS   1 FINDING  QUALIFIED  STAFF     2 KEEPING  UP  WITH  CHANGES  AND   COMPLEXITY  OF  TAX  LAWS   3 SUCCESSION  PLANNING   4 SEASONALITY/WORKLOAD   COMPRESSION   5 THE  EFFECT  ON  FIRMS  CAUSED  BY  NEW   REGULATIONS  &  STANDARDS   39  
  39. •  Educate  —  Preparing  you  (and  staff)  to  understand  and  arCculate   the  value  of  your  tax  services   –  Value-­‐Centric  Culture  Checklist  ensures  delivery  of  a  consistent  message  from   everyone  in  your  firm  about  the  value  you  provide  clients   –  Talking  points  to  overcoming  objecCons  to  fees   •  Engage  —  Engaging  with  clients  to  stay  top  of  mind   –  CPA  value  and  tax  blurbs  for  the  web  and  client  newslerers   –  Tax  planning  brochures   –  Extension  brochure  with  FAQs  on  this  filing  opCon   –  PowerPoint  on  current  year  topics   •  Promote  —  PromoCng  your  firm  to  arract  new  clients   –  Sample  client  lerers   –  Sample  social  media  posts   40   Client Acquisition and Retention Tax Practitioners Toolkit23
  40. Client  AcquisiCon  and   RetenCon   You  Are  The  Value  Online  Workshop24   41  
  41. Action Result Product Champion Deadline Completed 1 Examine current margins and test various price increase scenarios Identifies low margin business and identifies opportunities for optimizing pricing to increase profitability; benchmarks your profitability [Managing Partner] 2 Review client base and determine which clients are buying on price or value; determine what clients really want from your relationship Identifies clients that may be undesirable for the firm; identifies clients that need more focus to enhance your value to them [Firm Management] 3 Review your clients and the services you provide. Determine where you are providing core services and where you are providing valuable services Identifies opportunities to provide more client services to increase profitability [Firm Management] 4 Discuss how your firm develops its pricing in light of pricing discrimination Develops justification for high value market pricing… [Firm Management] 42   Client Acquisition and Retention Pricing & Profitability Strategies Action Plan25 PCPS Practice Growth & Client Service Center
  42. THE PCPS CPA FIRM 2013 TOP ISSUES DIAGNOSTIC REPORT Owner/Partner   Accountability  and   Unity  
  43. PCPS CPA Firm Top Issues FIRMS  WITH  6-­‐10  PROFESSIONALS   FIRMS  WITH  11-­‐20  PROFESSIONALS   FIRMS  WITH  21+  PROFESSIONALS   1 FINDING  QUALIFIED  STAFF     1 RETAINING  QUALIFIED  STAFF   1 RETAINING  QUALIFIED  STAFF   2 SUCCESSION  PLANNING   2 FINDING  QUALIFIED  STAFF     2 FINDING  QUALIFIED  STAFF     3 SEASONALITY/WORKLOAD   COMPRESSION   3 SUCCESSION  PLANNING   3 OWNER/PARTNER  ACCOUNTABILITY   &  UNITY   4 RETAINING  QUALIFIED  STAFF   4 BRINGING  IN  NEW  CLIENTS   4 SEASONALITY/WORKLOAD   COMPRESSION   5 AGING  OF  OWNERS/PARTNERS   5 SEASONALITY/WORKLOAD   COMPRESSION   5 BRINGING  IN  NEW  CLIENTS  (TIE)   SUCCESSION  PLANNING   SOLE  PRACTITIONERS   1 KEEPING  UP  WITH  CHANGES  AND   COMPLEXITY  OF  TAX  LAWS   2 SEASONALITY/WORKLOAD   COMPRESSION   3 THE  EFFECT  ON  FIRMS  OF  NEW  FEDERAL   &  STATE  REGULATIONS   4 SUCCESSION  PLANNING   5 BRINGING  IN  NEW  CLIENTS   FIRMS  WITH  2-­‐5  PROFESSIONALS   1 FINDING  QUALIFIED  STAFF     2 KEEPING  UP  WITH  CHANGES  AND   COMPLEXITY  OF  TAX  LAWS   3 SUCCESSION  PLANNING   4 SEASONALITY/WORKLOAD   COMPRESSION   5 THE  EFFECT  ON  FIRMS  OF  NEW  FEDERAL   &  STATE  REGULATIONS   44  
  44. American Institute of CPAs® Private Companies Practice Section Owner/Partner Accountability and Unity Partner Accountability Guide26 45   The Leadership Development Model is a trademark of and copyrighted by ConvergenceCoaching, LLC.
  45. American Institute of CPAs® Private Companies Practice Section Owner/Partner Accountability and Unity CPA Horizons 2025 Toolkit27 46  
  46. Top  Issues  —  Other  Firm   Concerns   Identity theft and working with the IRS continue to be a struggle Technology is rapidly changing and firms are skeptical about the cloud, security and privacy CPAs are receiving more requests for third-party verification letters (comfort letters) What are you experiencing? 47  
  47. THE PCPS CPA FIRM 2013 TOP ISSUES DIAGNOSTIC REPORT Financial  Benchmarking   &     Tracking  
  48.   DO  choose  a  benchmarking  survey     DO  understand  the  input  methodology  and   definiCons   –  Medians,  Averages  and  Percentages   –  FTE’s     DO  realize  regional  differences     DO  strive  to  be  berer  than  average       DO  understand  interacCon  of  KPI’s     DON’T  focus  too  much  on  one  KPI  and  another   suffers     DON’T  set  unrealisCc  goals   Financial Benchmarking & Tracking Benchmarking Do’s and Don’ts
  49.   RealizaCon  (net  billed/gross  work  in  process)   –  Measure  of  billing  efficiency/profitability     UClizaCon  (billable  hours/total  hours)   –  Measure  of  people  management     Average  partner  managed  billing     –  Measure  of  partner  leverage       Revenue  per  full-­‐Cme  equivalent     –  Measure  of  staff  leverage     Billing  and  collecCon   Financial Benchmarking & Tracking Key Profit Drivers
  50. Financial  Benchmarking  &  Tracking   AICPA  PCPS/TSCPA  NaConal  MAP  Survey34   •  National results segmented by firm size and region are available FREE to PCPS members •  Participating firms get access to personalized results and dynamic benchmarking platform •  Put the benchmarking data to work in your firm –  Analyze costs –  Compare billing rates –  Examine write-downs
  51. Column1 <200K 2012 <200K 2014 200<500K 2012 200<500K 2014 500<750K 2012 500<750K 2014 Partners/Owners 126 125 160 160 180 180 Directors * * 124 128 137 150 Sr  Managers * * 107 113 119 140 Managers * * 89 106 109 120 Sr  Associates * * 87 90 98 100 Associates 61 * 74 73 80 85 New  Professionals * * 63 80 67 85 Subcontractors n/a * n/a 120 n/a 132 Column1 750K-­‐1.5M 2012 750K-­‐1.5M 2014 1.5-­‐5M 2012 1.5-­‐5M 2014 5-­‐10M 2012 5-­‐10M 2014 10M+ 2012 10M+ 2014 Partners/Owners 199 197 230 240 259 268 313 312 Directors 151 150 192 200 227 250 286 263 Sr  Managers 135 137 159 165 186 185 231 231 Managers 119 120 141 150 160 169 194 175 Sr  Associates 104 100 117 121 131 136 150 144 Associates 84 82 97 100 109 109 118 118 New  Professionals 72 70 81 85 91 90 105 105 Subcontractors n/a 125 n/a 151 n/a 170 n/a * * unable to measure based on limited responses n/a - not asked in 2012 Financial Benchmarking & Tracking Average Billing Rates from 2014 MAP Survey
  52. Financial Benchmarking & Tracking From the Platform: Billing Rates by position
  53. 54   Consider  Joining  a  PCPS  Community36     Women’s Networking Group Trusted Client Adviser Alumni
  54. THE PCPS CPA FIRM 2013 TOP ISSUES DIAGNOSTIC REPORT Questions?
  55. THE PCPS CPA FIRM 2013 TOP ISSUES DIAGNOSTIC REPORT Thank You! Please Contact Us! PCPS Team pcps@aicpa.org 800.CPA.FIRM #AICPApcps
  56. Norfolk  pines   Captain  Cook  &  Norfolk  Pines  on   Maui  
  57. AICPA  Council  -­‐  Maryland   DelegaCon  
  58. 91%     Of  firms  expect  to   con[nue  record  hiring   levels   16%     Projected  accoun[ng  job   growth  between  2010  and   2020   73%     Of  investors  express   confidence  in  U.S.  capital   markets     87%     Of  key  decision  makers  say   CPAs  are  valuable  to  their   orgs     Our  Profession  stands  strong  
  59. Maryland   NaConal   Leadership   1.  Lyle  Benson   2.  Wayne  Berson   3.  Ed  Karl   4.  Jody  Padar   5.  Tom  Hood   +     Vice-­‐Chair  of  AICPA,   Kimberly  Ellison-­‐Taylor   CEO  of  NABA,     Jina  ECenne  
  60. Kimberly  Ellison-­‐ Taylor  Chair-­‐elect   of  AICPA   MACPA  Past  Chair  
  61. LookoutPost
  62. Context! Certainty! Capacity! Competency! Core Beliefs!
  63. Context!
  64. Gradual then Sudden! Exponential growth fueled by Technology (Moore’s Law)!
  65. Moore’s  Law  visualized   25,600  Times   More  Storage  
  66. ExponenCal  Times   Value  of  Smartphone  &  Apps  
  67. More Uber cars than yellow taxis on the road in NYC
  68. AirBnB Rooms available surpasses Hilton & Marriott
  69. Gradual then Sudden
  70. 92% of CPAs are! NOT Future Ready!! Future Ready is the capacity to be aware, predictive, and adaptive of emerging challenges, tech innovations, and trends and changes in business, population, and social environment.! Source: CPA.COM 2014 CPA of the Future Study!
  71. 'If the rate of change on the outside exceeds the rate of change on the inside, the end is near.’ – Jack Welch
  72. Will your job be done by a machine? Source: NPR Planet Money, May, 2015
  73. Certainty!
  74. ANTICIPATION   Strategic  Thinking   External  Awareness   Vision   ConCnuous  Learning   InnovaCon   CreaCvity   Problem  Solving   PrioriCzaCon   Business  AcumenDecisiveness   Influencng/Persuading   EmoConal  Intelligence   Consensus  Building   CollaboraCon   InspiraCon   Risk  Management   AnCcipatory  OrganizaCon:  AccounCng/Finance  EdiCon   www.blionline.org/ao   Three  Hard  Trends:   1. Government  RegulaCon   2. Technology   3. Demographics  
  75. Legislative / Regulatory / Standards Federal •  Tax Due Dates changes •  Mobile Workforce legislation Federal Regulators •  DOL Overtime Standards Standards •  Peer Review Future of Practice Monitoring In Progress •  CPE Standards – due October 1, 2015 •  CPA Exam Standards due November 30, 2015 •  FASB Not-For-Profit Exposure Draft Comments
  76. Mobile workforce Patent holding companies * DOL overtime * Cash basis * IRS Service Levels * Top Priorities of Maryland Managing Partners  
  77. DOL  ALERT   “The  DOL  will  ask  for  stakeholder  support,  and  will  strongly  encourage  state  boards  of   accountancy  to  consider  more  rigorous  review  of  firms  performing  ERISA  audits  and   examine  how  licensing  requirements  might  play  a  role  in  improving  conCnuing  educaCon   and  boost  quality.    We  believe  the  contents  of  these  lerers  to  be  reasonable  under  the   circumstances.”      -­‐  AICPA  Regulatory  Affairs     Stats  from  DOL   Maryland  is  16th  in  #  of   plans/parCcipants/assets   with  282  firms  audiCng   1,614  plans  with  3  million   parCcipants  and     $264.12  billion  in  plan   assets   24%  of  all  audits  and  22%   of  all  plans  
  78. On April 13th at 11:49pm Supersedeas Bond Bill passed the ! House of Delegates 118 – 19, the last bill to be heard!
  79. On January 13th, 2016, the 436th Maryland General Assembly will ! convene its 90-day session and188 legislators (47 Senators and 141 Delegates) will consider more than 2,500 legislative proposals including the State budget. ! The session concludes “sine die” at midnight on April 10th, 2016. ! Mark Twain famously said, “no man’s life, liberty, or happiness are safe when th e legislature is in session.” This could not be more true for our Profession.!
  80. We defeated this FIVE times in 1997, 2001, 2004, 2007, 2012 !
  81. “Contributory negligence” is negligent conduct on the part of the plaintiff/injured party contributes to the negligence of the defendant in causing the injury or damage. The Pure Contributory Negligence Rule is literally a defense which says that a damaged party cannot recover any damages if it is even 1% at fault. The pure contributory negligence defense has been criticized for being too harsh on the plaintiff, because even the slightest amount of contributory negligence by the plaintiff which contributes to an accident bars all recovery no matter how egregiously negligent the defendant might be. Maryland is one of only four states (AL, VA, NC, MD) plus DC with this doctrine in place.! The Trial lawyers are beating the drum for their bill to raise or eliminate the cap on non- economic damages.  See attached from today’s Daily Record.  We are ready for another battle on this at the 2016 Session.  " - Paul Tiburzi DLA Piper & MD Tort Reform Coalition – Nov, 2015! This opens the door for possible Comparative Fault Legislation which will result in higher professional liability insurance and increased #’s of lawsuits – We have defeated this with the coalition FOUR times 1998, 2000, 2001, 2007! Defeat Comparative Fault Legislation
  82. Legislative / Regulatory / Standards State Board •  Positioning for Firm Mobility •  CPE tracking and audits •  Proposing Legislation - Peer Review – Subpoena Power •  Marijuana Industry State •  Offense -  Supersedeas (Appeal Bond) Caps -  Tax Return Due Dates •  Defense -  Stop Comparative Fault – Liability -  Stop Sales Taxes on Services -  Stop Nullify NDA & Non-Compete -  Stop Excessive Mandatory Leave
  83. Federal vs State laws! State Board Guidance! Resources: aicpa.org/marijuana! MD State Board issued guidance – ! October, 2015 at our request ! "The Board compared it to serving gambling or liquor industry an d verbalized zero interest in pursuing any sanctions to CPAs serv ing that industry, if legal in the applicable jurisdiction.”" – MD State Board October, 2015!
  84. Senator Brian Feldman, CPA (D- Montgomery Co.) signed on ! to sponsor our Appeal Bond Small Business Cap!
  85. CPA  Day  in  Annapolis  –  January  21,    2016   “if you don’t have time to participate in the legislative process, be prepared to accept the consequences of those who do.”
  86. •  Closes loophole for non-CPAs to perfor m attest services! •  Includes all examinations and AUP ! •  with SSAEs (XBRL, sustainability, gree nhouse gas emissions and SOC report s! •  Cybersecurity! SB 536 – HB 878 Passed Unanimously House & Senate April 3, 2015!
  87. Those  who  build  great  companies   understand  that  the  ulCmate  throrle   on  growth  for  any  great  company  is   not  markets,  or  technology,  or   compeCCon,  or  products.  It  is  one   thing  above  all  others:  the  ability  to   get  and  keep  enough  of  the  right   people.                                        -­‐  Jim  Collins   War  for  Talent   MACPA  Pipeline  IniCaCves  
  88. Bachelor's  &  Master’s  in  AccounCng   Source:  AICPA  2015  Trends  in  Supply  &  Demand    
  89. Source:  Updated  2015  Trends  Report  data   What’s  driving  our  pipeline  concerns?  
  90. MACPA  Leadership  Academy  –  August,  2015   Next  class  –  August  24-­‐26,  2016    
  91. MACPA  Student  Leadership  Academy  –  June,  2015   Next  class  –  June  2-­‐4,  2016    
  92. New  CPAs     Swearing-­‐in  Ceremony   November  10,  2015   Hilton  BWI  Hotel   6:30pm  –  9:00  pm  
  93. Guide  for  Becoming  a  CPA   www.cpaguide.macpa.org  
  94. American Institute of CPAs® The AICPA Proposal: Joining forces to protect, promote and grow an evolving accounting profession
  95. American Institute of CPAs® B&I members comprise approximately 40% of AICPA membership •  Historically under-served member segment Seepage •  Many CPAs were turning to B&I and/or leaving profession •  Fewer accounting grads are entering into public accounting International considerations •  Profession, clients & employers becoming more international •  66% of the work that AICPA members in B&I performed was outside of traditional audit, accounting, and tax1 Partner vs. build for B&I value creation to reclaim leadership in management accounting space •  Identified CIMA as partner1. Business and Industry Executive Committee (BIEC) 2. 2013 AICPA Accounting Trends report Identified need to better serve members in business and industry (B&I)
  96. 104
  97. American Institute of CPAs® More can be achieved By partnering more fully, the AICPA and CIMA believe they can: Drive greater consistency, quality and relevance of public and management accounting Enhance advocacy, speaking with the voice of 600K+ professionals to help shape policies in the public interest Streamline resources to benefit from economies of scale and scope Achieve a broader platform to talk with students, graduates and professional accountants about CPA and CGMA
  98. American Institute of CPAs® 1 in 3 accounting graduates become CPAs Sources: NASBA, Bureau of Labor Statistics, Department of Education, AICPA CPAs: ~550K Other Accounting Professionals: ~650K Accountingprogramgraduates 82K  per  year   42K Don’t sit for exam Accountants and Auditors in the US: 1,200K Foreign nationals that return home 14KDon’t pass exam 26KPass exam 2014 data
  99. American Institute of CPAs® Top1 accounting firm talent is increasingly becoming broader than CPAs 128K   139K   154K   165K   48K   50K   51K   54K   0   20   40   60   80   100   120   140   160   180   2011   2012   2013   2014   #ofProfessionalsandPartners Thousands   Certified Public Accountants3 Total professionals and partners2 3 Year CAGR = 8.9% 3 Year CAGR = 3.6% 1.  23 of the top 30 accounting firms as reported in the 2015 Accounting Today Top 100 Accounting Firms Report. Seven firms were removed due to missing or incomplete information. 2.  Total Professionals as reported in the annual Accounting Today Top 100 Accounting Firms Report from 2011-2014 3.  AICPA internal data from member data and surveys
  100. Confidential – Internal Use Only 109 U.S. students have greater international exposure Source: Institute of International Education Foreign students studying annually in the United States 819,644 283,322 Up 41% since 2002 U.S. students studying abroad annually Up 76% since 2002 283,322 819,644
  101. American Institute of CPAs® U.S. influence on the international profession projected to decrease * Numbers based on organization’s HQ location, with adjustments for ACCA due to global nature and availability of data Sources: International Accounting Bulletin, IFAC, NASBA, ACCA annual report, AICPA membership 13% 7% 29% 55% 28% 15% 25% 14% 5% 9% Today's Members Current and Future Students 2030 Africa and Middle East Europe and Russia Americas (without US) Asia-Pacific US
  102. American Institute of CPAs® International accounting bodies are competing for relevance Merged to form a combined institute in 2013; effective April 2014 Launched CPA Canada in October 2014, consolidating the three national accounting bodies Introduced Chartered Accountants Worldwide to promote the CA qualification internationally Signed a mutual recognition agreement with IMA. Agreement dissolved but continues to operate informally. Recently announced multi-year research initiative with IMA on future of global profession. Launched first ACCA accreditation program at U.S. higher education institution, Pace University Signed MOU with Institute of Internal Auditors to allow ACCA members to become CIA certified. Announced partnership with American University linking ACCA’s qualification program with graduate coursework
  103. American Institute of CPAs® International accounting bodies are competing for relevance The Institute of Singapore Chartered Accountants, SAICA (South Africa) and SAC (Singapore) have signed an expression of interest as a first step toward dual membership. Launched joint public and corporate sector audit qualification in April 2015 The Institute of Management Accountants (IMA) partnered with Penn State University on a curriculum geared toward accounting careers in industry, consulting, and advisory services. The South African institutes (SAICA and SAIPA) in merger talks
  104. American Institute of CPAs® CIMA is the right partner World’s largest and leading professional body solely focused on management accounting Founded in 1919 227,000 members and students in 179 countries Strong relationships with employers such as Shell, Unilever, BP 4-year history of joint venture success
  105. American Institute of CPAs® Together, the AICPA and CIMA further professionalized management accounting PerformanceValue & GrowthPositioning Global interest in the CGMA brand Imperial Sponsor at WCOA 2014 Deepening relationships with employers globally Created Global Management Accounting Principles CGMA Competency Framework Growing catalog of thought leadership on key business issues AICPA | CIMA Competency and Learning website CGMA exam in U.S. CGMA website, magazine, newsletter, tools and resources +150,000 CGMAs worldwide, with >50k CPAs holding designation Staff exchanges Collaboration leading to innovation in public practice areas Advocacy
  106. American Institute of CPAs® Evolving the relationship Evolution of the JV
  107. American Institute of CPAs® Next step in the journey Maintain the two membership bodies – AICPA and CIMA –while integrating their strategies, management and operations Deliver better and more relevant resources for members Strengthen advocacy, speaking with the power of more than 600,000 professionals worldwide on critical issues important to you Recognize and support public and management accounting as critical components of the end-to-end accounting profession Elevate awareness of the CPA and CGMA and the opportunities they unlock Requires a membership vote from both AICPA and CIMA Evolve the existing joint venture into an association that is the voice of professional accounting worldwide.
  108. GeneraCon  Z  
  109. Belicia  Cespedes,   CPA       Youngest  CPA  in   the  Profession  
  110. What  year  is  this  quote  from?   “Our  youth  now  love  luxury.  They  have  bad   manners,  contempt  for  authority;  they   show  disrespect  for  their  elders  and  love   chaBer  in  place  of  exercise;  they  no  longer   rise  when  elders  enter  the  room;  they   contradict  their  parents,  chaBer  before   company;  gobble  up  their  food  and   tyrannize  their  teachers.”    
  111. Capacity!
  112. TheTop 6 Ways to Create Capacity in your Firm •  Maximize software & tools you have •  Use the latest and most efficient technologies •  Workflow & Process Efficiency •  Focus on your best ‘A’ clients •  Communicate your services (cross-sell) •  Engage your people
  113. •  Purpose •  Career Development •  Strengths  
  114. www.blionline.org
  115. www.blionline.org The BLI Magnetic Firm Framework
  116. Creating the Magnetic Firm Purpose Driven Great Leadership Culture Of Growth Inspiring Workplace Vision, Purpose and Values based Transparent and Inspirational Leadership Learning Culture - Self and Formal Development Flexible and Open Work Environment Focus on Strengths and Positivity Build Consensus and Commitment Career & Growth Orientation – Career Paths Work/Life Balance Inclusive and Diverse Leadership Development at all levels Customer focused Coaching and Feedback High Performance – Insight to Action Anticipatory and Proactive Collaborative and Team based Effective TechnologyTools - mobile
  117. Grow  your  people,  grow  your  firm!   Use  learning  as  a  strategic  weapon  in  the  war  for   talent  with  our  BLI  Talent  and  Leadership   Development  Support.  
  118. Now What?!
  119. Competency!
  120. www.blionline.org
  121. Maryland Public Company Collaboration Top Four Issues 1.  Learning & Talent Development 2.  Global Structure of Finance Function 3.  Managing Risk & Innovation 4.  Insight to Action* *This started our journey to research the competencies needed for accounting and finance professionals to provide “insight to action” and shift from reactive to proactive.
  122. ANTICIPATION   Strategic  Thinking   External  Awareness   Vision   ConCnuous  Learning   InnovaCon   CreaCvity   Problem  Solving   PrioriCzaCon   Business  Acumen   Decisiveness   Influencing/Persuading   EmoConal  Intelligence   Consensus  Building   CollaboraCon   InspiraCon   Risk  Management   AnCcipatory  OrganizaCon:   Finance  /  AccounCng  EdiCon   CGMA Competency Framework
  123. http://www.blionline.org/ao
  124. Core Beliefs!
  125. Integrity   Competence   Lifelong  learning   ObjecCvity   Commitment  to  excellence   Protect  the  Core   CPAs…Making  sense  of  a  changing  and   complex  world  
  126. Calendar!
  127. Tom Hood, CPA, CITP, CGMA •  CPA Practice Adviser Accounting Hall of Fame •  Named the Second Most Influential in Accounting by Accounting Today Magazine 2015, 2013 •  Top 150 Influencer by Linked-In •  Top 25 Influencers in Learning & HR by HR Examiner •  Top 25 Public Accounting Thought Leaders by CPA Practice Adviser •  Working on Learning Management with AICPA/CPA2Biz, Cloud Curriculum, Performance Management /XBRL, Leadership & Generations CEO Maryland Association of CPAs (MACPA) www.macpa.org Business Learning Institute (BLI) www.blionline.org http://www.linkedin.com/in/tomhood/ Hood's  greatest  aBribute  isn't  that  he  consistently   glimpses  the  future  more  quickly  than  the  rest  of  us   (though  he  does).  It's  that  he's  able  to  bring  it  back  to   the  present  and  serve  as  its  Nreless,  inspiring  and   effecNve  champion.                                        – Accounting Today
  128. American Institute of CPAs® Private Companies Practice Section Visit aicpa.org/PCPS 146   Check out the spotlight section of the PCPS home page, which highlights other important issues
  129. American Institute of CPAs® Private Companies Practice Section Index of Links 1. Succession Planning PCPS Succession Resource Center http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/StrategyPlanning/center/ Pages/default.aspx 2. Succession Planning 2012 PCPS Succession Survey http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/StrategyPlanning/center/ DownloadableDocuments/SuccessionSurveySoloFullResults.pdf http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/StrategyPlanning/center/ DownloadableDocuments/SuccessionSurveyMultiFullResults.pdf 3. Succession Planning PCPS Succession Guide & Tools http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/StrategyPlanning/center/ guide/Pages/default.aspx 4. Succession Planning Firm inMotion e-Toolkit http://www.aicpa.org/INTERESTAREAS/PRIVATECOMPANIESPRACTICESECTION/ STRATEGYPLANNING/FIRMINMOTION/Pages/default.aspx 5. Succession Planning Transition Continuum and Checklist http://www.aicpa.org/interestareas/privatecompaniespracticesection/strategyplanning/ firminmotion/firmstructurestrategy/downloadabledocuments/transition-continuum-and- checklist 6. Human Capital Concerns PCPS Internship Quick Start Guide http://www.aicpa.org/interestareas/privatecompaniespracticesection/humancapital/ teamrecruitment/recruitingandprospecting/downloadabledocuments/internship-quick-start- guide.pdf
  130. American Institute of CPAs® Private Companies Practice Section Index of Links (continued) 7. Human Capital Concerns PCPS Human Capital Resource Center http://www.aicpa.org/interestareas/privatecompaniespracticesection/humancapital/pages/ default.aspx 8. Human Capital Concerns Firm Competency Model http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/HumanCapital/ PerformanceManagement/DownloadableDocuments/FirmCompetencyModel.doc 9. Human Capital Concerns Recruiting Brochures http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/HumanCapital/ DownloadableDocuments/SmallFirmRecruiting.pdf 10. Seasonality/Workload Compression PCPS Publications http://www.aicpa.org/interestareas/privatecompaniespracticesection/newsandpublications/ pages/default.aspx 11. Seasonality/Workload Compression Client Evaluation Tool http://www.aicpa.org/interestareas/privatecompaniespracticesection/practicegrowth/ trustedbusadv/downloadabledocuments/clientevaluationtool.xls 12. Seasonality/Workload Compression Client Disengagement Letter aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/StrategyPlanning/ FirmStrategyandPlanning/Pages/Sample%20Client%20Termination%20Letter.aspx 13. Seasonality/Workload Compression Automated Workflow http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/QualityServicesDelivery/
  131. American Institute of CPAs® Private Companies Practice Section Index of Links (continued) 14. Keeping Up Washington Tax Brief http://www.aicpa.org/interestareas/tax/cpeandevents/pages/washingtontaxbrief.aspx 15. Keeping Up Tax Power Hour http://www.aicpa.org/interestareas/tax/cpeandevents/pages/taxpowerhour.aspx 16. Keeping Up Tax Practices Resources Webpage http://www.aicpa.org/INTERESTAREAS/TAX/Pages/TaxHomepage.aspx 17. Keeping Up Tax E-Alert www.aicpa.org/InterestAreas/Tax/NewsAndPublications/TaxEAlert/Pages/default.aspx 18. Keeping Up Tax Identity Theft Information & Tools http://www.aicpa.org/interestareas/tax/resources/irsprocedureadministration/pages/ idtheftinformationandtools.aspx 19. Keeping Up Health Care Reform Resource Center http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/QualityServicesDelivery/ TaxResources/Pages/HealthcareReformToolkit.aspx 20. Client Acquisition and Retention Trusted Client Adviser Toolbox http://www.aicpa.org/interestareas/privatecompaniespracticesection/practicegrowth/ trustedbusadv/pages/tbalanding.aspx 21. Client Acquisition and Retention Identify & Prioritize Tool http://www.aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/PracticeGrowth/ TrustedBusAdv/DownloadableDocuments/IdentifyPrioritizeTool.pdf
  132. American Institute of CPAs® Private Companies Practice Section Index of Links (continued) 22. Client Acquisition and Retention Practice Growth http://www.aicpa.org/interestareas/privatecompaniespracticesection/practicegrowth/pages/ default.aspx 23. Client Acquisition and Retention Tax Practitioners Toolkit aicpa.org/Career/Marketing/Pages/cpa-value-tax.aspx 24. Client Acquisition and Retention You Are The Value Online Workshop aicpa.org/InterestAreas/PrivateCompaniesPracticeSection/PracticeGrowth/pages/ youarethevalue.aspx 25. Client Acquisition and Retention Pricing & Profitability Strategies Action Plan http://www.aicpa.org/interestareas/privatecompaniespracticesection/practicegrowth/ downloadabledocuments/pricing%20profitability%20strategies%20action%20plan.xls 26. Owner/Partner Accountability & Unity Partner Accountability Guide aicpa.org/interestareas/privatecompaniespracticesection/humancapital/ownerdevelopment/ partneraccountability/downloadabledocuments/partner%20accountability%20guide.pdf 27. Owner Partner Accountability & Unity CPA Horizons 2025 Toolkit http://www.aicpa.org/interestareas/privatecompaniespracticesection/strategyplanning/ firmstrategyandplanning/pages/pcpscpahorizons2025toolkit.aspx 28. Technical Developments PCPS Invigorate the Focus on Quality Toolkit aicpa.org/pcps/Quality 150  
  133. American Institute of CPAs® Private Companies Practice Section Index of Links (continued) 29. Technical Developments Center for Plain English Accounting http://www.aicpa.org/InterestAreas/CenterForPlainEnglishAccounting/Pages/CPEA.aspx 30. Technical Developments Preparation, Compilation and Review Standards http://www.aicpa.org/interestareas/frc/reviewcompilationpreparation/pages/resources-for- ssars21.aspx 31. Technical Developments RevenueRecognitionStandard aicpa.org/revenuerecognition 32. Technical Developments Private Company Financial Reporting http://www.aicpa.org/interestareas/frc/accountingfinancialreporting/pcfr/pages/financial-reporting- framework.aspx 33. Technical Developments PCPS Technical Issues Committee aicpa.org/TICAdvocacy 34. Financial Benchmarking 2014 PCPS/TSCPA National MAP Survey aicpa.org/mapsurvey 35. Financial Benchmarking & Tracking Tech Success Tracker http://www.aicpatechsuccess.com/ 36. PCPS Communities aicpa.org/pcps/Community 151  

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