DIGITAL CPA WEBCAST SERIES:

STRATEGIES FOR INNOVATING FOR THE FUTURE READY CPA

April 30, 2015

CPA.com an AICPA company

• Empowering CPAs and Businesses for the Digital

Age

Erik Asgeirsson, President and CEO, CPA.com

• Industry leader with over 20 years of experience

leading technology organizations

• Consistently recognized as one of Accounting

Today’s “Top 100 Most Influential People”• BS Electrical Engineering, George Washington

University, and MBA in Finance, NYU Stern School

of Business

Guest Panelists

Victoria Kosuda, CPA, CITP

Managing Consultant, Beyond Financials Consulting

• Diverse experience in Big 4, small firm, and corporate finance

• Project managed many software development, systems integration, and

business intelligence projects

• Current Chair of Technology Interest Group for New Jersey Society of CPA‘s

Mark Koziel, CPA, CGMA

Vice President – Firm Services &Global Alliances, AICPA

• Oversees development, ongoing improvement and delivery of services to

members in PCPS/Firm Practice Management as well as international

relations with various CPA related groups

• Founding member of Young CPAs committee and served as Chair of Buffalo

Chapter Board

Samantha MansfieldDirector of Corporate Communications, CPA.com

• 15 years in tax and accounting technology industry

• Consultant on workflow and web implementations

• Designed and instructed practice development events for accounting

profession for over 10 years

Digital CPA Webcast Series –Building a community of digital CPAs who embrace change and the transformational effects of technology on today’s practice

•Strategies for Innovating for the Future Ready CPAApril 30th

•July 16th

•September 22nd

Upcoming in 2015

Agenda

Establish a foundation

Factors influencing innovation

Building your strategy

Harness the Power

- Moore

Start with Why - Sinik

The Big Switch – Carr

Future Smart

- Canton

The Foundation

“In times of disruption the bridge

builders win.”

- Nicholas Carr, author of “The Glass Cage”

2014 Digital CPA Conference Keynote

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FACTORS INFLUENCING INNOVATION

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Economy of the Future

Hype Cycle for Emerging Technologies - 2014

Source: Gartner’s 2014 Emerging Technology Hype Cycle

Cloud

Computing

Technology Trigger

TIME

VIS

IBIL

ITY

Peak of Inflated Expectations

Slope of Enlightenment

Trough of

Disillusionment

Plateau of Productivity

Big Data

“Technology is moving to the front room and part of the

client experience.”

- Gale Crosley, CPA, CGMA

Consultant

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New Look to Client and Firm Engagement

Accounting Today,

January 2015

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Where do you Fall?

CHASM

Helping Firms With

Adoption Curve

Firm Solutions

CPA

Profession

Changing Workforce

Largest population growth segment in U.S. is Hispanico Less than 5% in any one ethnic group entering the profession

Gen X’ers and Millienials are replacing Baby Boomers

o Millienials jumping to manager roles faster

Women out number men in the workforceo Women out number men in the professiono Only represent 19% in partner roleso Less than 10% of firm ownership is held by women

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80% of CPA’s Think their Role will Change Significantly in the Future

Requires professionals to be more intimate with clients

and the shifting marketplace

More aware of globalization

Better understand digital tools

Develop insights into business processes that create

value

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Source: “CPA of the Future 2015 Study” by Dr. James Canton and the Institute of Global Futures

Beyond Financial Consulting has a Different Vision

Work with small business owners only

Provide a deeper level of service than traditional CPA’s

– monthly/weekly contact, better information, help them

grow their business, go deeper than just financial

reporting and tax returns

I personally wanted to work differently – more flexible

schedule, less tied to a desk, be more creative

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BUILDING YOUR STRATEGY

“It's tough to make predictions, especially

about the future.”

A Note On Predictions

- Yogi Berra

Breaking it Down into Phases

Phase 1o Took on any new client that came my way – various industries and

requirements

o Became a member of various accounting/technology groups and online

forums to absorb as much information as possible and learn from others

o Discovered new accounting vendors in the cloud and started to

understand the value of how cloud tools can connect to each other

o Started testing out new tools – put my firm on Xero, connected Xero to a

new clients’ Freshbooks account, took time to get certified in the tools

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Strategies

Create a culture of innovation

o Experiment

o Join a group(s) that are also trying new things

o Failure is ok

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Phase 2

Developed a firm “toolset” through testing with clients and learning from other

accountants

When a new client comes on board, we assess their needs, and pull the solutions

from our toolset

Each client is using a combination of tools customized to them. We know what

works well

Have built efficiencies into our processes because we are using the same software

across the board

Have developed close relationships with clients because we can access their data in

real time and help them make decisions

Technology has enabled the “deeper level of service” I was looking to achieve

We are seeing great value and efficiencies focusing on specific industries

Learning their lingo and their vendors

Becoming familiar with the issues they face along with possible solutions

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Implementing Something New is Not All or Nothing

Doesn’t have to be a full fledged change across entire firm to start

Appoint a champion

Make a commitment to fully test theory

Perform in stages

Failure is ok

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Strategies

Create a culture of innovation

Embrace and navigate change

o Keep testing

o Adjust to individual needs while staying focused on vision

o Never stop learning

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Phase 3

Start to purge the outlier clients

Continue to expand knowledge of add-on solutions that are niche specific

Add new staff

Keep growing

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Strategies

Create a culture of innovation

Embrace and navigate change

Employ change management techniques

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Manage the Transition

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Concept: “Managing Transitions” by William Bridges

“5 Dysfunctions of a Team”

Inattention to Results

Avoidance of Accountability

Lack of Commitment

Fear of Conflict

Absence of Trust

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Additional Reading

“Future Ready CPA Study”

o CPA.com and Dr. Canton

o www.CPA.com/future-ready-cpa

“Accounting Services - Harnessing the Power of the Cloud”

o Dr. Geoffrey Moore

o http://www.cpa.com/whitepapers/accounting-services-harness-power-cloud

“Model of Success”

o Jeff Drew, Journal of Accountancy

o http://www.journalofaccountancy.com/issues/2015/apr/accounting-firm-business-models.html

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QUESTIONS?

Future-ReadinessAre CPA’s

Future Ready?

Are You

Future Ready?

DIGITAL CPA Conference 2015

December 7-9Red Rock Casino, Resort & Spa – Las Vegas

Additional Resources:

• CPA.com Blog

• Slideshare.net/CPAcom

• Client Advisory Services

Workshops

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Thank you!

#DigitalCPA