aicpa pstech - cpa relationships & cloud panel
DESCRIPTION
How the Dynamic of the CPA Client Relationship Changes in the Cloud - A panel moderated by Tom Hood with Michael Hsu & Jennifer Katrulya. Tom asks how these two progressive firms are changing how CPA practices are working. The new model is mobile, social, cloud, collaborative, and value-added.TRANSCRIPT
CPA2Biz, Inc. - Proprietary and Confidential Information
How the Dynamic of the CPA/Client Rela6onship Changes in
the Cloud Firm Panel Discussion
Tom Hood, CPA.CITP, CGMA CEO at Maryland Association of CPAs
AICPA Practitioners/Tech Conference Wednesday, June 13, 8:00 AM - 9:15 AM
CPA2Biz, Inc. - Proprietary and Confidential Information
Moderator: Tom Hood • Named to the “Elite 13” & Top 100 Most Influen;al by Accoun;ng Today
• Top 25 Influencers in Learning & HR by HR Examiner
• Top 25 Public Accoun;ng Thought Leaders by CPA Prac;ce Adviser
• Currently working on Performance Management/XBRL & Learning Management with AICPA/C2B
Tom Hood, CPA, CITP, CGMA CEO MACPA Business Learning Institute (BLI)
CPA2Biz, Inc. - Proprietary and Confidential Information
CPA Panelists • Michael started DeepSky in 2009 with the mission of helping entrepreneurs build beTer companies through ac;onable business insights. DeepSky was designed in a similar structure to that of an in-‐house accoun;ng department vs. a tradi;onal tax or A&A firm
• In three years’ ;me, DeepSky has grown from a fledgling startup to a leader in the outsourced accoun;ng space with customers from all around the country
• Michael has been featured and quoted in Accoun1ng Today, CPA Prac1ce Advisor, and various business blogs
• His firm serves the Entrepreneurial service space -‐ $1-‐10M – who are open to cloud technology
• While he’s based in CA, his biggest client resides in Washington DC – who he’s never met
Michael Hsu, CPA.CITP, MSA Founder & CEO DeepSky – Entrepreneur’s Accounting Department
CPA2Biz, Inc. - Proprietary and Confidential Information
Jennifer L. Katrulya, CPA Founder & CEO BMRG, LLC
CPA Panelists • Founder and CEO of BMRG, LLC • Managing Partner – BMRG Group Advisory
Program for CPAs • AICPA/CPA2Biz Facilitator for the Trusted
Business Advisor Cloud-Based Client Accounting Practice Development Training Program
• BMRG supports the following products and services:
– Outsourced Accounting and CFO Services – Payroll Processing and Compliance – Business Coaching and Advisory Services for BMRG
Clients – Integrated Application Sales and Support (Bill.com,
Merchant Services, Payroll, and select 3rd party applications and services)
– CPA practice and ProAdvisor advisory/coaching services – Software application training and general business classes
at regional colleges and professional associations
CPA2Biz, Inc. - Proprietary and Confidential Information
CPA Horizons 2025
• 1. CPAs must stay current with, embrace and exploit technology for their benefit for increased efficiency and expansion of services.
• 2. The profession must find solu;ons to offer investors and stakeholders up-‐to-‐date, real-‐;me financial informa;on and to increase transparency.
• 3. CPAs must embrace mobile technologies and social media to modernize and enhance interac;on and collabora;on with clients and colleagues.
CPA2Biz, Inc. - Proprietary and Confidential Information
• Clients with revenues > $1 million and most $2-$20 million per year, some higher
• Many with more than 20 employees, several with more than 50 employees
• Clients in most of the 50 states and 13 other countries (all U.S. based)
• All services provided remotely (even for local clients)
• Specialized industry verticals • Value-based pricing and bundled service
options currently ranging from $1,500/mo. to $16,500/mo., average $4,900 per month, realized rates of $125-$800/hr.
• Staff in multiple states and in-office staff earn telecommuting privileges
• Clients with revenues < $1 million
• Generally fewer than 10 employees
• Within 75 miles of our Connecticut office
• We worked on-site with clients within 20 miles of our office (CFO Services Only) and remotely with all others
• Worked with nearly any industry
• Billing rates ranged from $45-$175/hr
• Staff worked full-time from our NY and CT offices
BMRG -‐ Then and Now BMRG Clients and Staff in 2004: BMRG Clients and Staff Today:
CPA2Biz, Inc. - Proprietary and Confidential Information
Cloud Compu6ng: Disrup6ve Innova6on
• Small Business Accoun;ng and Client Accoun;ng
on the verge of disrup;on
• Cloud compu;ng is drama;cally changing how
accoun;ng sodware is developed and delivered
• New paradigm emerging for small business & a new
market is being created Incredible Opportunity For Firms
CPA2Biz, Inc. - Proprietary and Confidential Information
• Improve client financial performance with proactive consulting • Save time and reduce cost by standardizing and leveraging automation and repeatable processes • Increase real-time collaboration with clients by accessing information in the Cloud • Increase margins by providing higher value with increased productivity
• Low margin transaction processing • Means to an end; a Tax Return
• Pressure to keep fees low • Non-strategic
Before: Transac;onal Today: Advisory
CPA2Biz, Inc. - Proprietary and Confidential Information
Move Up the Client Value Pyramid
Client Value Pyramid
Controllership Services Monthly Close, Fin Statements, Cash Flow Analysis
Virtual CFO Budget, Business Planning, Business Modeling, etc.
Transac6onal Services Tax, Write up, Bookkeeping, A/P, Payroll, etc.
More CPAs are becoming outsourced CFOs for their small business clients
CPA2Biz, Inc. - Proprietary and Confidential Information
• Being able to work anywhere, any6me: 88% 5%
• Disaster backup & recovery : 85%
• Improved client service & collabora6on: 84%
• Being able to use the latest applica6ons: 82% 4%
• Being able to serve non-‐local clients: 80%
• Expand services, create new revenue sources: 79% 11%
Key Benefits of Accoun6ng Firm Usage of Cloud Applica6ons CPA2Biz 2012 Technology Survey
CPA2Biz, Inc. - Proprietary and Confidential Information
Regarding a physical office:
• In 2011 4% of firms were “virtual”
• By 2012 those numbers have grown to 8%
Growth of Virtual Office CPA2Biz 2012 Technology Survey
CPA2Biz, Inc. - Proprietary and Confidential Information
Ge^ng Ver6cal through the Cloud Business
Intelligence Repor6ng
Real-‐Time Client Collabora6on
Standardized Workflows
Client Accoun6ng Capabili6es
driven through cloud
compu6ng
• Professional Services – 90%
• Construc6on – 76% • Retail – 75%
• Not-‐for-‐Profit – 73%
• Manufacturing – 65%
• Wholesale Distribu;on – 61%
• Technology Companies – 59%
• Transporta;on – 48%
• Hospitality – 45%
• Franchises – 40%
• Government – 29%
Most Popular Client Ver6cals for Outsourced Accoun6ng Services
CPA2Biz, Inc. - Proprietary and Confidential Information
Game Changing Transforma6on
Moving From Systems of Record
To Systems of Engagement
• Collabora;ve • Intelligent • Knowledge Based
TODAY FUTURE
• Consolidate • Organize • Report
(The Digital CPA )
Geoffrey Moore Slide – Adopted for CPA Marketplace
CPA2Biz, Inc. - Proprietary and Confidential Information
Importance of Digital Brand in Client Rela;onship
Historical
• Meeting in an office • Phone • Classified • Yellow Pages
Today
• Online Collaboration • Email • Social Networking • Search
CPA2Biz, Inc. - Proprietary and Confidential Information
Consumer Email Account
What’s Your Online Digital Brand?
Professional Email
1. Firm Branded Domain: -‐ www.smithcpa.com -‐ Branded web site and email 2. CPA.com Domain -‐ [email protected]
CPA2Biz, Inc. - Proprietary and Confidential Information
Accoun6ng Firm Use of Social Media CPA2Biz 2012 Technology Survey
• 34% of CPAs surveyed are using tablets (iPads) for business purposes, and another 12% plan to soon
• According to recent Boomer study, this is as high as 57% for mid sized firms
-‐
10
20
30
40
50
60
70
80
LinkedIn FaceBook TwiTer Blog
2011
2012
Firm Usage of Blogs and Twitter each up 60% year-over-year
CPA2Biz, Inc. - Proprietary and Confidential Information
How is your firm changing?
• Firm Branded Web Site & Email
• Google Adver;sing Campaign to drive new business to firm
• Launch a Mobile App
• Be ac;ve on LinkedIn • Start Video Blog and post to YouTube
• Create a TwiTer profile and Facebook Company page
AOL/Yahoo email
Web site with brochure-‐type
content
Minimal ac;ve firm marke;ng and networking
Use only tradi;onal
channels for staff recruitment
Old Technology
You can leap from old to new technologies with smart business strategies and minimal investment
CPA2Biz, Inc. - Proprietary and Confidential Information
Accounting Firm-Branded Mobile Apps
Eide Bailly
KPMG
Moss Adams
THE APP IS THE WEB SITE OF THE 90’s AND IS COMING TO SMALL FIRMS
CPA2Biz, Inc. - Proprietary and Confidential Information
Mobile-Friendly Practice Management Tools
Salesforce.com CCH Mobile
CPA2Biz, Inc. - Proprietary and Confidential Information
Accounting Software in Your Mobile Device
Bill.com
Intacct
CPA2Biz, Inc. - Proprietary and Confidential Information
Mobile Bill Payment!
• Access multiple client accounts"
• View/Approve bills"• View approver notes"• Make secure
payments"– Multiple bank
accounts"
– Adjustable payment timing"
CPA2Biz, Inc. - Proprietary and Confidential Information
• Security: 73% concerned ( 8% from 2011)
• Confiden6ality: 72% concerned ( 8% from 2011)
• Privacy: 67% concerned ( 11% from 2011)
• Availability: 64% concerned ( 4% from 2011)
TOP CONCERNS (SIGNIFICANTLY OR SOMEWHAT CONCERNED)
CPA2Biz Survey Results – April 2012 Accoun;ng Firm Usage of Web-‐Based Applica;ons
CPA2Biz, Inc. - Proprietary and Confidential Information
What alleviates CPAs’ concerns? CPA2Biz 2012 Technology Survey
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Company reputa;on
SOC 2 Other firms' usage
Strong SLAs in place
Training on cloud service
Not Important
Somewhat
Very Important
CPA2Biz, Inc. - Proprietary and Confidential Information
Digital Darwinism?
CPA2Biz, Inc. - Proprietary and Confidential Information
You have 3 years at most!
• Cloud • Mobile • Social • Value-‐added • Collabora;ve
hTp://cpa.tc/socialbiz
hTp://cpa.tc/engagement
CPA2Biz, Inc. - Proprietary and Confidential Information
The Digital CPA Cloud User Conference
Firm Technology Trends
Prac6ce Development
Tools
Hands-‐On User Training
Cloud Compu;ng, Mobile, Social Media, Change Management
Building a Virtual CFO Prac;ce…Pricing Services, Engagement LeTers, Staffing Models, Marke;ng Best Prac;ces
Accoun;ng Sodware, Bill Management and Cash Flow, Tax, Accoun;ng & Audi;ng Workflow Automa;on
Oct 28 -‐ Oct 30, 2012 Gaylord Na;onal Hotel and Conven;on Center
Gaylord Na6onal, Washington, DC Recommended CPE Credit: 19
CPA2Biz, Inc. - Proprietary and Confidential Information
Want more?
hTp://cpa.tc/2012Summit/
hTp://cpa.tc/BeachRetreat/
Tom Hood, CPA.CITP CEO
Maryland Associa6on of CPAs Business Learning Ins6tute
(443) 632-‐2301 E-‐mail [email protected]
Web hnp://www.macpa.org Blog hnp://www.cpasuccess.com