future of cpas, cfos & accounting - marriott finance/accounting

Tom Hood, CPA, CITP, CGMA CEO

MACPA & the Business Learning Institute

Professional Issues Update and The Future of CPAs, CFOs and Accounting

Professionals Prepared for:

Global Accounting & Finance Team June 27, 2013

Tom  Hood  CEO  of  MACPA  &  BLI  

•  Named  Fourth  Most  Influen2al  Person  by  Accoun2ng  Today  

•  Top  25  Influencers  in  Learning  &  HR  by  HR  Examiner  

•  Top  25  Public  Accoun2ng  Thought  Leaders  by  CPA  Prac2ce  Adviser  

•  Working  on    Learning  Management  with  AICPA/CPA2Biz,    Cloud  Curriculum,  Performance  Management  /XBRL,  Leadership  &  Genera2ons  

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

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Insights  to  Ac2on    

“One  without  the  other  is  either  useless  or  destruc2ve”  T  

Source:  WTF  What’s  the  Future  of  Business  by  Brian  Solis  

What  I  have  been  thinking  about  

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Business   Not  for  Profits  NGOs  

Government  

Different  Worlds?  

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The New Normal - VUCA

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What is the #1 reason organizations fail?

http://www.burrus.com

Inattentional blindness

The new “Big Four” + 1 + 3

• Economy • Globalization • Workforce • Technology + Health Care

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The Research

2 1,000 10,000

Source: CPA Horizons 2025

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• Change • Complexity • Compliance • Convergence • Competition

MANAGING THE “SEA” CHANGE

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Compliance - Standards •  International – IASB &

IFRS •  FASB & PCC •  AICPA & FRF – SME •  ASB – Clarity (12/15) •  GASB Pension •  PEEC •  COSO •  IIRC

hQp://cpa.tc/1us  T  

Convergence and IFRS

2013 FUTURE 2014

Leases re-exposure

Revenue recognition standard

Financial instruments

IFRS?

Principles- based

SEC milestone ─ IFRS decision

Affects virtually all businesses

#MainStFinancials

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Happy 40th Birthday FASB!

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#AccountingStandards Public  &  Private  Companies  

Private  Companies-­‐  Small  Business  

Public  &  Private  Companies    

Private  Companies    

Private  Companies-­‐  Small  Business  

Financial  ReporHng  

IFRS  (IASB)    

IFRS-­‐SME  (IASB)    

GAAP  (FASB)    

GAAP-­‐PCC  (FASB)    

FRF-­‐SME  (AICPA)    

AudiHng   IAASB   IAASB   PCAOB  ASB  (AICPA)  

ASB  (AICPA)    

ASB  (AICPA)    

Ethics   IFAC   IFAC   PEEC  (AICPA)  

PEEC  (AICPA)    

PEEC  (AICPA)    

21

Cascade!

Health Care is major issue

Source:  Thomson-­‐Reuters    6/26/13   T  

And opportunity

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80

40

1950 1960 1970 1980 1990 2000 2010 1940

100%

60

20

Total U.S. debt as a percentage of GDP

2013 101.6%

1981: 32.5%

Accounting bodies hail G20 emphasis on public sector reporting���

DATA  Act  &  Financial  Industry  Transparency  Act  using  XBRL  

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XBRL ���FASB Industry Taxonomy Project

•  Develop  industry  specific  taxonomies  •  BeQer  suited  for  each  industry  •  Industries  par2cipa2ng  include:  •  Insurance  •  Banking  •  Brokers  and  Dealers  •  Real  Estate  •  NFPs  •  GASB?  •  Form  990  

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Historical Context – The Perfect Storm

•  Web 2.0 •  Globalization •  Generations

Source: Don Tapscott - Wikinomics

Five Things Every Professional Needs to be Good At

1.  Learning and staying on the cutting edge. 2.  Managing your career (yep, you have to

take charge of your own career). 3.  Doing the work (research, productivity,

communication). 4.  Interacting with your peers and colleagues. 5.  Becoming a thought leader in your field. - Allen Blue co-founder Linked-In

hQp://lnkd.in/HghTcX  

#SocialAccoun2ng  

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Four Generations in the Profession Millennials (Gen Y) - Born btw 1980 & 2000 Generation X - Born btw 1965 & 1979 Baby Boomers - Born btw 1946 & 1964 Matures (Traditionalists) - Born btw 1945 & 1925

"For Gen Y, training and development is the most highly valued employee benefit. The number choosing training and development as their first choice of benefit is THREE times higher than those who chose cash bonuses."

Workforce���#TalentWar

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Workforce���#4Generations

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Business   Not  for  Profits  NGOs  

Government  

Different Worlds?

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#IIRC  

hQp://www.theiirc.org  

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<IR> Framework Consultation Draft – released April 16

IIRC  Value  Crea2on  Process  

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CGMA  &  COSO  Balancing  Risk  &  Innova2on  

hQp://cpa.tc/2qf   hQp://www.coso.org  T  

Source:  DeloiQe  CFO  Signals™  survey,  fourth  quarter  2012  T  

42 42 42

43 43 43

CGMAs are part of a new, worldwide network of management accountants, working in the world’s leading corporations, private and public organizations, small businesses and start-ups.

Code of ethics and

enforcement

Continuous professional development

Financial and non-financial

expertise

Powered by a JV between AICPA and

CIMA

2/3 1/3

45 45 45

For businesses

Broader skills

Greater agility and adaptability

Increased mobility

Deeper leadership

46 46 46

Benefit specifics

Designatory letters Affiliation with world-leading accounting

organizations

Tools for self-promotion

Commitment to inform market of

CGMA value

Commitment to global management

accounting Website (cgma.org) Online social

community Affiliation with

leaders in business

Inaugural print magazine Online magazine Thought leadership

papers Global Economic Outlook Survey

Advocacy voice of a half-million accounting

professionals around the world

Certificate Professional Development

47 47 47

CGMA qualifying criteria

Contact bpayne@aicpa.org

Business   Not  for  Profits  NGOs  

Government  

When  Worlds  Collide  

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#CFOsSaveTheWorld  

Through collaboration, our CFO community manages financial accountability, compliance, and risk across HHS by maximizing resources to drive results.  

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You can’t stop the waves but you can learn how to surf. �– Jon Kabbat-Zin �

#Vision&Strategy  

“If you don’t have a vision for your firm or yourself, you’ll just get sucked into somebody else’s vision” – adapted from Watts Wacker, Futurist

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CGMA – CIMA���The global value-added financial professional���

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CPAs  are  trusted  advisors  who,  combining  insight  with  integrity  deliver  value  by:  

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CommunicaHng  the  total  picture  with  clarity  and  objec2vity  TranslaHng  complex  informa2on  into  cri2cal  knowledge  

AnHcipaHng  and  crea2ng  opportuni2es    Turning  insights  into  acHon  to  transform  vision  into  reality    

Value-added Finance / Accounting Professional

The Research

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58 58 58

1. Finance specialism – the fundamentals

‘’The commercial finance roles may seem sexy – in there with the buying and marketing teams doing deals. In these situations people may believe that the financial substance is a bit in the back, but the truth is that it is at the centre. You always need the bedrock of financial integrity and control.” Hetal Shah, CFO, Streamline

“It is critical to develop credibility to progress within the organisation.” The fast track to leadership

59 59 59

2. Information for insight – being part of the solution

IBM report, Leading through connections

Turning the tide: How Europe can rebuild skills and generate growth, by Accenture

60 60 60

3. The two C’s – communication and collaboration Two personal attributes that CEOs see as most critical for the future success of staff:

IBM’s Leading through connections survey

4. Experience of major projects and strategic initiatives – in and out of finance

•  Internal projects •  Technology investments •  Mergers & acquisitions •  Operations support •  Sales team support •  Business expansion, new

markets

62 62 62

5. Local and global perspectives – exposure to different markets and cultures

Accenture’s 2012 report, Turning the tide: How Europe can rebuild skills and generate growth

Business decision makers…

6. Leadership – talent management

•  Developing leadership skills is crucial

•  Identifying opportunities: –  Seize opportunities as the

arise –  Think outside the box –

both inside and outside of work

64 64 64

7. Strategic Vision EIU’s Plugging the skills gap….

65 65 65

The action plan

66 66 66

Building influence via trust and credibility – Finance leadership capabilities and behaviours

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hQp://cpa.tc/2qh    

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theBounce

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#AdaptorDie���#BendAdoptionCurve

• Technology & Caveman • L > C • CC > EC • CPA as Artist

Technology & the Caveman

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“In  a  period  of  rapid  change  and  increasing  complexity,  the  winners  are  going  to  be  the  people  who  can  LEARN  faster  than  the  rate  of  CHANGE  and  faster  than  their  COMPETITION.”  

-­‐  Tom  Hood,  CPA.CITP.CGMA  6/26/13   T  

#CC>EC #  1  Skill  is  CollaboraHon  #  2  Skill  is  CommunicaHon  according  to  2012  IBM  Global  CEO  Study  

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#Artist&CPA

•  Lots  of  ways  to  mess  up!  

•  Heat  is  needed  to  shape  the  glass  

•  Long  setup  2me  for  quick  finish  

•  Try,  learn  and  adjust      -­‐Tim  McFadden  6/26/13   T  

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

Tom Hood, CPA.CITP CEO Maryland Association of CPAs Business Learning Institute (443) 632-2301 E-mail tom@macpa.org Web http://www.macpa.org Web http://blionline.org    

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