macpa fall town hall / professional issues update - 2015

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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 410-841-557 [email protected]

PCPS Superheroes

Jeanie Price, AAAPM DeLeon & Stang, CPAs & Advisors 301-948-9825 [email protected]

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.

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

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

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

THE PCPS CPA FIRM 2013 TOP ISSUES DIAGNOSTIC REPORT

Succession Planning/ Aging of Owners &

Partners


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





14

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 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

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

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

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 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


Human Capital Concerns

Finding and Retaining

Qualified Staff






UNITY




SOLE PRACTITIONERS





5 RETENTION OF CURRENT CLIENTS







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

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

Team Recruitment Action Plan15

Sample Recruitment Promotion16

Firm Needs Assessment

17

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

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

27

Human Capital Concerns RecruiCng Brochures9


Seasonality/ Workload

Compression






UNITY




SOLE PRACTITIONERS





5 BRINGING IN NEW CLIENTS







29

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)

•  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


Keeping Up

Changes/Complexity of Tax Laws and

Federal/State Regulations






UNITY




SOLE PRACTITIONERS












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

•  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


Client AcquisiAon and RetenAon






UNITY




SOLE PRACTITIONERS












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

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

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


Owner/Partner Accountability and

Unity





3 SEASONALITY/WORKLOAD COMPRESSION 3 SUCCESSION PLANNING 3 OWNER/PARTNER ACCOUNTABILITY

& UNITY


5 AGING OF OWNERS/PARTNERS 5 SEASONALITY/WORKLOAD COMPRESSION 5 BRINGING IN NEW CLIENTS (TIE)

SUCCESSION PLANNING

SOLE PRACTITIONERS



3 THE EFFECT ON FIRMS OF NEW FEDERAL & STATE REGULATIONS








5 THE EFFECT ON FIRMS OF NEW FEDERAL & STATE REGULATIONS

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.


Owner/Partner Accountability and Unity CPA Horizons 2025 Toolkit27

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


Financial Benchmarking &

Tracking

 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

  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

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

Column1<200K2012

<200K2014

200<500K2012

200<500K2014

500<750K2012

500<750K2014

Partners/Owners 126 125 160 160 180 180Directors * * 124 128 137 150Sr Managers * * 107 113 119 140Managers * * 89 106 109 120Sr Associates * * 87 90 98 100Associates 61 * 74 73 80 85New Professionals * * 63 80 67 85Subcontractors n/a * n/a 120 n/a 132

Column1750K-‐1.5M

2012750K-‐1.5M

20141.5-‐5M2012

1.5-‐5M2014

5-‐10M2012

5-‐10M2014

10M+2012

10M+2014

Partners/Owners 199 197 230 240 259 268 313 312Directors 151 150 192 200 227 250 286 263Sr Managers 135 137 159 165 186 185 231 231Managers 119 120 141 150 160 169 194 175Sr Associates 104 100 117 121 131 136 150 144Associates 84 82 97 100 109 109 118 118New Professionals 72 70 81 85 91 90 105 105Subcontractors 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

Financial Benchmarking & Tracking From the Platform: Billing Rates by position

54

Consider Joining a PCPS Community36

Women’s Networking

Group

Trusted Client Adviser Alumni


Questions?


Thank You! Please Contact Us!

PCPS Team [email protected] 800.CPA.FIRM

#AICPApcps

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 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

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

Kimberly Ellison-‐Taylor Chair-‐elect

of AICPA MACPA Past Chair

Lookout Post

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 challenges, tech innovations, and trends and

changes in business, population, and social

environment.!

Source: CPA.COM 2014 CPA of the Future Study!

'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 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

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

Mobile workforce

Patent holding companies

* DOL overtime

* Cash basis

* IRS Service Levels

* Top Priorities of Maryland Managing Partners

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

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 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 the legislature is in session.” This could not be more true for our Profession.!

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 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

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

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 and verbalized zero interest in pursuing any sanctions to CPAs serv

ing that industry, if legal in the applicable jurisdiction.”" – MD State Board October, 2015!

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 legislative process, be prepared to accept the consequences of those

who do.”

•  Closes loophole for non-CPAs to perform attest services!

•  Includes all examinations and AUP !•  with SSAEs (XBRL, sustainability, gree

nhouse gas emissions and SOC reports!

•  Cybersecurity!

SB 536 – HB 878 Passed Unanimously House & Senate April 3, 2015!

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

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 – 9:00 pm

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 profession


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 partner

1. Business and Industry Executive Committee (BIEC) 2. 2013 AICPA Accounting Trends report

Identified need to better serve members in business and industry (B&I)


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


1 in 3 accounting graduates become CPAs

Sources: NASBA, Bureau of Labor Statistics, Department of Education, AICPA

CPAs: ~550K Other Accounting Professionals: ~650K

Acc

ount

ing

prog

ram

gra

duat

es

82K pe

r year 42K Don’t sit

for exam

Accountants and Auditors in the US: 1,200K

Foreign nationals that return home

14K Don’t pass exam

26K Pass exam

2014 data


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

# of

Pro

fess

iona

ls a

nd P

artn

ers Th

ousand

s

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

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


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


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


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


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


Together, the AICPA and CIMA further professionalized management accounting

Performance Value & Growth Positioning

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


Evolving the relationship

Evolution of the JV


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.

GeneraCon Z

Belicia Cespedes, CPA Youngest CPA in the Profession

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.”

Capacity!

The Top 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

•  Purpose •  Career

Development •  Strengths

www.blionline.org

www.blionline.org

The BLI Magnetic Firm Framework

Creating the Magnetic FirmPurpose Driven

Great Leadership

CultureOf 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 Technology Tools - mobile

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.

Now What?!

Competency!

www.blionline.org

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.

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

http://www.blionline.org/ao

Core Beliefs!

Integrity Competence Lifelong learning ObjecCvity Commitment to excellence

Protect the Core

CPAs…Making sense of a changing and complex world

Calendar!

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


Visit aicpa.org/PCPS

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Check out the spotlight section of the PCPS home page, which highlights other important issues


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


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/TaxResources/DownloadableDocuments/workflow-technology.pdf


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


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

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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 Revenue Recognition Standard 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

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