Top 10 reasons and resources for CPA Firms from State CPA Associations. Presentation to the AAA National Practice Management Conference in New Orleans by Tom Hood, CPA, Past President of national CPA-SEA (State Execustives Association) and President of the Maryland Association of CPAs

1. The Relationship
Between the CPA
Firm Administrator &
State CPA Societies
or Everything you wanted to
know about CPA-SEA & State CPA
Societies
Tom Hood, CPA.CITP – Past-
President
CPA – SEA
CPA State Executives Association
But were afraid to ask

2. Being in business today feels like being in
permanent whitewater
2

3. You feel
overwhelmed
by the rapid
and turbulent
pace of change
and
uncertainties in
business today

4. You need new skills and new resources to
ride these waves of change
Photo: Pratt’s surfing page

5. Keeping up with the CPA Profession

6. CPA-SEA is the network – that
connects you through your state
CPA Society

7. CPA-SEA
 Our Purpose
 “to assist our members to achieve
operational excellence in the
management of their organizations
and provide a forum for networking
& communication to enable
members to choose informed
courses of action on professional
issues facing CPAs”
 Our Values:
 Leadership
 Integrity
 Collaboration
 Exploration

8. CPA-SEA Leadership
 Betsy Adrian - MN  Dennis Tomorsky - WI
 Kathy Anderson - FL  Loretta Doon - CA
 Rich Jones - WA  Deb Riley - VT
 Tom Hood – MD  Jeanine Birmingham –
 Erin Hardwick - SC AL
 Jane Egan - MT

10. Making It Real
10

11. What the world would
miss if we were gone?
• We keep the CPA Profession up with the
rapidly changing environment
• We are bridge builders – taking care of
the CPA Profession’s infrastructure
• We are the leadership development
pipeline for the CPA Profession
• We protect the CPA reputation & image
• We are the connectors of the Profession
– connecting to key resources
• We mobilize the Profession to do the
things you cannot do alone!

12. Mega-trends
1. Regulations &
Standards
2. Globalization
3. Workforce
4. Technology

13. Top 10 Issues Facing CPAs
1. Economic Outlook
2. Tax
3. Business Operations
4. Implementation and Execution
of Plans
5. New Business Development
6. Personal/Professional
Development
7. Management and Leadership
8. Financial Regulatory Reform
9. Access to Financing and Credit
10 New Accounting Standards,
IFRS
Source: CPA Trendlines for AICPA Feb, 2010

14. Top Ten Issues for MFG
1. Regulatory/Legislative (56)
2. Private Company Leadership (47)
3. Capital Markets Awareness / Recognition (34)
4. Rethinking Business Model (25)
5. Protect Audit/CPA Franchise (20)
6. Risk Management (Audit efficiencies) (20)
7. Leadership Development / Succession
Planning (19)
8. Global / International (Clients / IFRS /
Branding) (17)
9. Leveraging Technology & Social Media (17)
10. MFG Issues specific forums / focus groups (8)
14

15. PCPS/TSCPA MAP Survey 2009
Top Five Issues Facing Firms <21
1. Client Retention
2. Marketing / Practice Growth
3. Tax Law Changes & Complexity
4. Keeping up with Regulations &
Standards
5. Retaining Qualified Staff /
Work/Life Balance
For larger firms add Partner
Accountability & Succession Planning Mark Koziel, CPA
AICPA PCPS
http://pcps.aicpa.org/
15

16. CPA Firms: Most Profitable Small
Business <$10 million
CPA Firms ranked number one by Forbes
Surveyed 300,000
Outrank:
• Chiropractors, Dentists, Optometrists
• Sales Financing
• Insurance Agencies and Brokerages
• Physicians, General/Family Practitioners
• Consumer Lending
• Diagnostic Imaging Centers
16 American Institute of CPAs Source: Forbes

17. They have you in their sights!

18. Seven Keys to Success in CPA Firm Management
1. Leadership
2. Technology
3. Learning Organization
4. Marketing and
Business Development
5. A Great Place to Work
6. Client Service and Satisfaction
7. Strategy Execution

19. So what? Top 10 Things
You Need to Know about
State CPA Societies
1. Maintain CPA Infrastructure – Legislative &
Regulatory
2. Support the Highest Standards of Professionalism
– Peer Review & Ethics
3. Build and Maintain the CPA Pipeline – Students –
Young Professionals
4. Leadership Experience & Training
5. Protect & Promote the CPA Image & Reputation
6. Serve the public – Financial Literacy
7. Connect you to resources
8. Training & Learning – Technical & Soft Skills
9. Developed a Vision for the Future
10.Creating a Learning & Performance Management
System for CPAs

21. Meet Bill… Managing Partner
• Bill’s firm files tax returns in
9 states + Maryland
• Last year he would have
required additional state
licenses in all states (except
OH, VA, MO, WI)
• He would have had to
register all of his tax CPAs
and staff as a tax advisor (est
$250 apiece)
• He would have to report to
two state boards with different
CPE requirements
What would this cost you?
• He would have had to
charge & collect sales taxes
on his accounting & tax
services
•He would be subject to two
new federal agencies – FTC
and the new CFPA

22. Where do major changes come from?
Us – MACPA & AICPA Them
OR

23. State CPA Statutes
police power of the states to protect their citizens vs commerce clause

24. Financial Regulatory Reform
24 American Institute of CPAs

25. CPA Mobility Legislation - 2010
WA
AK
VT
MT ME
ND
OR MN NH
ID
SD WI
WY NY *MA
MI
*PA CT RI
NE IA
NV OH
UT IL IN DE NJ
CA CO WV
VA
KS MO KY MD
HI
NC
TN DC
AZ OK
NM AR SC
MS AL *GA
TX LA
FL
Awaiting Governor Signature - 1
CPA Mobility Legislation Pending - 2 PR
CPA Mobility Enacted 46 GU
U.S. VIRGIN ISLANDS
* CPA Mobility Enacted Only for
Other Mobility States – GA, PA, MA
In Process
25 American Institute of CPAs

26. 2. Maintain the Highest
Professional Standards –
Peer Review & Ethics - Your firm license
depends on it

27. # 3 Promoting the CPA Career –
Maryland example
New/Young
Tomorrows
Professionals MACPA
CPA.org
Network
Most state societies have similar programs to onboard students into
the Profession

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

29. # 4 Leadership Pipeline
Ernie Almonte – AICPA Past-Chair came from Rhode Island as
past president – most AICPA Chairs, Board members, and Council
members had their start in State CPA Societies

30. Meet the New Young Professionals
Remember when you were ‘made’ to be a
member of your State Society & AICPA?
According to the William E. Smith study of Association
value: Benefits to the professionals and their employers
include higher morale, increased employer loyalty,
networking, professional development, leadership
experience, professional community and big-picture
thinking.

31. # 5 Protecting the CPA Image &
Reputation
• Remember Enron & WorldCom?
Public Relations and Image protection are
both a major focus and great example of
State CPA Societies and the AICPA
working together for the benefit of the
entire CPA Profession

32. # 6 Financial Literacy
www.feedthepig.org
www.360financialliteracy.org

33. # 7 Connectors to Resources

34. # 8 Training & Learning
Critical
Turning
Point
Courtesy of the Business Learning
Institute © 2000

35. # 9 Developed a Vision for the
Future
Another example of the power of the AICPA & State CPA
Societies working together – the CPA Vision identified these
critical competencies for 2011
• Communication &
Leadership
• Strategic & Critical
Thinking
• Focus on the Customer,
Client, and Market
• Interpretation of
Converging Information
• Technologically adept

36. # 10 New Learning Management System (LMS)
Course Search
Recordkeeping Single Sign-On
CPA2Biz
Administration Web-Based Web Delivery
Learning
Management
Competency System Compliance
Integrated Learning Integrated
Curriculums Developed CPE Tracking
Around Individual Linked to
Career Paths CPE Requirements
Content Library
AICPA, State CPA Societies, 3rd
Parties
State Society AICPA Firm or
Company
Branded Branded
Learning Center Learning Center Branded
Learning Center
American Institute of CPAs

37. Tom Hood, CPA.CITP Betsy Adrian
CEO President
Maryland Association of CPAs Minnesota Society of CPAs
Business Learning Institute
(443) 632-2301 (952) 831-2707
E-mail tom@macpa.org E-mail badrian@mncpa.org