state of my industry: accounting 2016

2016 The State of My Industry: Accounting

Tom Hood, CPA, CITP, CGMA fluencer#MyIndustry@tomhood

“We stand on the brink of a technological revolution that will

fundamentally alter the way we live, work, and relate to one another. In its

scale, scope, and complexity, the transformation will be unlike anything humankind has experienced before.”

Big Waves of Change

Borrowed from the US Army War College, VUCA was coined by The Institute for the Future to describe the rapidly changing and complex business environment since the Great Recession of 2008.

Technology is #1 Hard Trend

Source: Miovision July 17, 2013 “The Internet of Things and Transportation”

From the World Economic Forum in Davos, 2016

Race Against the Machines?

Source: Frey & Osborne – The Future of Employment – Oxford University

The Fourth Industrial Revolution

Source: CPA.COM Insight into the CPA of the Future Study 2014

92% of CPAs are NOT Future Ready

Future Ready is the capacity to be aware, predictive, and adaptive of emerging trends, innovations and

changes in business, population, and the social environment.

Are we at a Strategic Inflection Point?

A 3-D printed carbon fiber house and SUV that share energy1.  the construction and building industry, including suppliers, supply chain, and

unskilled labor;2.  the automotive and transportation industry, including components makers and

the classic assembly line; and,3.  the electric-utilities industry.

Cognitive Computing has three unique capabilities: 1) natural language processing, 2) hypothesis generation and evaluation, and 3) dynamic learning.

“You can’t stop the waves, but you can learn how to surf.”

– Jon Kabat Zinn

Oceans of Opportunity

91%

Of firms expect to continue

record hiring levels

11%

Projected accounting job growth between 2014 and 2024

Demand for Accounting is Strong

And according to the DOL BLS, faster than the average for all occupations

References: US Department of Labor, Manpower Group Talent Shortage 2015

38% of employers interna2onally report talent shortages in 2015

2009: 30%

Employment of accountants and auditors is projected to grow 11 percent from 2014 to 2024, faster than the average for all occupa2ons – US Dept of Labor 2015

Accoun2ng and finance staff

#1 in demand

#8 in talent shortage


•  2 of Top 10 Best Jobs (US News & World Report) •  Top 20 Happiest Professions (Huff Post) •  Top 10 in Demand Jobs/Hardest Jobs to Fill –

(Manpower Group)

And Career is Attractive

# 1 Most Profitable

industry according to Sageworks

# 1 In small/mid-size business growth rates averaging

12% in 2016


The Rise of the #DigitalCPAShift from Tangibles to Intangibles

Source: What defines the 21st Century Corporation Geoff Colvin - Fortune

Cloud computing trends

Source: Sage North America & AICPA PCPS MAP Survey

of small businesses are demanding cloud-based computing

61%

<10% of CPAs are using cloud-based applications to collaborate and work with clients.

Advisory Services Lead Growth

“The real way it was in finance—in the world I grew up in—is we spent all our time looking backwards…[Modern Finance and Accounting] is now it’s about looking to the future.” – Safra Catz, CEO of Oracle (formerly CFO)

CFO à COO à CEO

There is a growing trend in CFOs moving to new roles as COOs and even CEOs as they lead business transformation.

Six Steps to Ride the Waves1.  Embrace Digital.2. Anticipate.3. Collaborate.4.  Learning as the next

competitive advantage.

5.  Protect the Core (Purpose & Values).

6. Make time for the future.

The leaders are the ones who take the first steps

“Tom Hood and his colleagues at the Maryland Associa2on of CPAs never fail to amaze and impress. Some2mes you can find them orchestra2ng a flash mob of accountants or puWng down stakes in the virtual world of Second Life, but most recently the associa2on has goYen serious about XBRL and has undertaken a project to demonstrate XBRL's scope and versa2lity by tagging its own financial statements and showing how non-‐profits can, well, profit from the experience. “What message can you learn from the MACPA's XBRL project? First, you can start examining your own client base to see who can benefit from the experiences of MACPA. But the bigger message is, stop wai2ng for other people to tell you what works and what doesn't. Be proac2ve and experiment. That's what new technology is all about. Whether it's cloud technology, IFRS and XBRL, social media, or choreographing a dance – the leaders are the ones who take the first steps.”

-‐-‐ Gail Perry, editor, Accoun2ngWEB Now with CPA Prac2ce Advisor

The leaders are the ones who take the first steps

"If there is a conversa3on about the future of the profession, you're bound to hear Hood men3oned as one of the people leading the way. From his Innova3on Summit to his many speaking engagements, from his prolific tweets to his range of alliances with vendors, other organiza3ons, and thought leaders at all levels, Hood is doing as much as anyone -‐ and more than most -‐ to lead public accoun3ng forward.”

–Dan Hood, Editor Accoun'ng Today, 2013

Tom and Bill named first and second most influen2al in the world by Savvy SME.

CPA Success blog named top 10 in na2on for accoun2ng.

Tom named second most influen2al in accoun2ng by Accoun2ng Today.

Tom one of inaugural LinkedIn Influencers.

If there is a conversation about the future of the profession, you're bound to hear Hood's name mentioned as one of the people leading the way. – Accounting Today

Tom Hood, CPA, CITP, CGMA

CPA Practice Adviser Accounting Hall of Fame Named the Second Most Influential in Accounting by Accounting Today Magazine 2013 - 2015 Top 150 Influencer by Linked-In Top 25 Influencers in Learning & HR - HR Examiner Top 25 Public Accounting Thought Leaders - CPA Practice Adviser Co-founder of the Business Learning Institute

CEO Maryland Association of CPAs (MACPA) www.macpa.org Business Learning Institute (BLI) www.blionline.org

http://www.linkedin.com/in/tomhood/