AICPA & CPA/SEAInterchange Conference

What You Really Need to Know

About CPA FirmsKim Fantaci, AAA Executive Director

Dennis Lemieux, AAA Director of Professional Awareness and Director of Operations of

Berry, Dunn, McNeil & Parker

July 30, 2009

What are CPA firms facing today?• Economic crisis• Implementation of standards and market needs• Client service• Development of professionals• Attracting the next generation and succession• Embracing and implementing of new technologies

Economic crisis• Recovery is slow• Some indicators are up while other economic

indicators have worsened• AICPA polls indicate increased optimism

• Accounting profession typically lags behind other industries making it more difficult to manage the firm

• Clients are tightening belts and having difficulties• Firms having to cut expenses and in some cases staff

Implementation of Standards and Market Needs• International Convergence / IFRS• Federal Laws & Regulations

SEC, DOL, Treasury, GAO, PCAOB

• CPA Profession StandardsAICPA & FASB, GASB, FASAB, IASB, IFAC

• State CPA Statutes

Changes in Client Service• Willingness to change• Marketing and practice growth• Protecting the CPA image and reputation• Developing and managing niches• Quality control• Accountability

“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.” – Charles Darwin

Development of Professionals• Bridging the gap between college and the real world• Under-developed skill sets (leadership, communication, time management

and organization, analytical and technical skills)

• Work-life balance• Developing and expanding networking opportunities and

organizational memberships• Promoting the CPA exam and career (understand the “new exam”,

track progress, support the swearing-in ceremony, create and reinforce a culture that celebrates CPAs)

• Quality and affordable CPE

Attracting the Next Generation and Succession• Recruiting through the economic challenges• Retaining staff and effectively communicating the

challenges of the firm and clients• Striving to understand the next generation and creating a

culture of learning, coaching, mentoring and nurturing• Developing succession plans in an ever-changing

environment

Embracing and implementing new technologies• Increasing rate of application change• Explosion of digital data and information• Connection options• System access and resiliency requirements• Security issues• Economic factors driving firms towards optimizing

efficiency and standardization

“The technology used by firms both to directly provide service to clients and to manage the practice are essential to productivity.” – Isaac M. O’Bannon

The Firm AdministratorProfessionals managing today’s accounting practices are . . . • responsible for the management of an accounting practice.• responsible for the quality and profitability of their firm.• supervising and/or training staff in an accounting practice.• interested in developing a network of outstanding professionals.• ready to promote their firm in today’s marketplace.• responsible for their firm’s technology, automation, and productivity.• both new and experienced professional administrators with a diverse

background.

The Firm AdministratorProfessionals managing accounting practices hold different titles depending on firm structure and culture . . .

Managing Partner Chief Operating Officer

Firm Administrator Director of AdministrationController Human Resource DirectorOffice Manager Administrative Manager

Regardless of the title, those managing accounting practices are constantly looking to best practices and their network to satisfy the growing professional needs in the field of accounting administration.

Association for Accounting AdministrationMore than 930 professionals managing accounting practices are members of the Association for Accounting Administration.

The AAA’s vision is to be the number one resource for best practices in the accounting profession providing member and firm value resulting in high quality management and administration.

AAA Demographics• AAA member firms have between 5 and 5,000 personnel with an average

firm size of just over 50. • AAA member firms are represented in all 50 states and nearly all

Canadian provinces with 22 chapters throughout the United States and Canada.

• AAA members have between 3 months and 32 years of experience with the average member having 7 years of experience in the accounting profession.

• The typical member has supervisory responsibilities in the areas of firm administration, practice management, facility management, finance and accounting, practice development, technology, marketing, human resources, scheduling and production control, and strategic planning.

Active Relationships or Partnerships with State Societies• Minnesota• Arizona• Illinois• Ohio• Indiana• Massachusetts• Michigan• New Mexico• Colorado

We’d love to develop active relationships and

networking with all State CPA Societies!

Interaction between CPA Firm and State CPA Societies

Insurance Programs• Are you reaching the entire firm with information about

insurance programs?• Is the information clear and understandable to not only

the CPAs but the firm as a whole when putting together their benefit packages?

Interaction between CPA Firm and State CPA Societies

Educational Speakers• CPA firms have individuals available for both technical and

practice management topics.• Do you know who the firm experts are?

• Does the State Society reach to the individual firm level with educational programs?

• Do the firms know the availability of in-house and customized programs?

Interaction between CPA Firm and State CPA Societies

Coordination of Educational Programs• CPA firms offer technical sessions for their clients and staff

on a regular basis – is there room for coordination between firms and the State Society of educational programs to eliminate duplication and expense?

Interaction between CPA Firm and State CPA Societies

Product Distribution and Education• Is the promotion and distribution of products and services

efficiently and effectively received by those within CPA firms?

• Training the firm’s administration professional can save time, money and resources for the State Society

• Utilization of the firm’s administration professional in beta testing of products and resources

Interaction between CPA Firm and State CPA Societies

Communication• Go from communicating with 10 or more members at one

firm to one administration professional• Administration professionals have the attention of firm

professionals and the authority to make decisions• Information overload causes less participation and will

eventually harm retention rates• Administration professionals have their hand on the pulse of

the firm’s culture

Interaction between CPA Firm and State CPA Societies

Billing• Most State Societies invoice the firm for dues and other

items - but not all have this set up• Remember if administration professionals are not

members of the State Society – give them billing coordination abilities like usernames and passwords

• This will provide for more efficient and accurate collections for the State Society

Interaction between CPA Firm and State CPA Societies

CPE Registration• Filter through administration professional who already

track CPE and can encourage professionals to register for needed courses

• CPE tracking will be easier for the firm and therefore the State Society

• Most Society systems don’t allow for non-members to register or for one individual to register multiple registrants

How Can State Societies and Administration Professionals Partner?

Offer State Society Membership• Do you offer a classification for the administration

professional?• Do you charge for this membership classification?• What does your Society offer to these members?• What could they offer to these members?

How Can State Societies and Administration Professionals Partner?

Offerings to Administration Professionals• Educational programs and trainings• Industry news and hot issues• Relationships with State Society staff members• Communication tools • Efficient and effective distribution of information

Use AAA Chapters for Efficiency and Effectiveness

Chapter Offerings• Respected CPA firms in 22

geographic areas• Well planned programs and

educational offerings• Local and regional networks• Use of several iConnections

within AAA iCommunities for distribution of information and promotions.

Use AAA Organization for Efficiency and Effectiveness

North American Offerings• Respected firms throughout the U.S. and Canada• Well planned programs and educational offerings• Ability to host webinars to connect effectively and

efficiently with administration professionals• AAA iCommunities for distribution of information and

promotions including calendars complimentary postings

If you knew the following about CPA firms or your membersit would make your jobs easier . . .

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State CPA Societies are invited to send their Executive Directorsor Presidents to the AAA National Practice Management Conference

with the registration fee on us!

Thank you!

Association for Accounting Administration136 South Keowee Street

Dayton, Ohio 45402(937) 222-0030 | Fax (937) 222-5794

aaainfo@cpaadmin.org | www.cpaadmin.org