Are You Future Ready?

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An Insider’s View of Public Practice

About Me: Graduated Summa Cum Laude – Franklin University Certified in 2009 – Youngest CPA in the State of Ohio when licensed 9 Years in Public Practice Local firm experience 2012 Graduate AICPA’s Leadership Academy Member of OSCPA and AICPA Involved in Cleveland Young CPA’s, Ohio CPA Public Relations Advisory

Council, OSCPA Candidate Endorsement Committee, Various AICPA task-forces, etc.

Member AICPA PCPS Executive Committee Treasurer, Agape Christian Academy

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What is the State of Public Accounting Today?

Aging Profession – AICPA data indicates that 75% of all active CPAs in public accounting will be retiring within the next 10 years!

Pricing Pressure – Work is more competitive than ever. Talent Shortage – Quality staff are ALMOST impossible to find. Generational Shifting – Millennials work and are motivated differently

than other generations. 4 Generations in the workplace. Reactionary profession Compliance driven and compliance focused Slow changing

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Today’s Focus: Compliance – Reactionary Service Model

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Tomorrow's Focus: Consulting – Proactive Service Model

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Trends Impacting the Future of Public Accounting

ConsolidationFocus on DiversitySuccession PlanningPricing

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Consolidation

Firms will continue to acquire complimentary firms Sustain needed growth Acquire qualified staff

Firms need growth numbers of 10-15% as a leading firm. Organic growth is only 6% on average.

Adding specialized niches to an existing firm can be very lucrative.

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Focus on Diversity

Minorities in the profession greatly lag behind the % of minorities in the US State and National programs to promote accounting to minorities. Just 20% of staff and 5% of partners are minorities.

Women in the profession For a long time now the number of women entering the profession has exceed

the number of men entering; however, total staff at firms are still only 45% women.

The bigger issue has to do with women holding only 20% of partner titles. AICPA is promoting the business case for diversity

Diversity in ideas leads to better decision making. As the country become more diverse there is a need for firms to continue to

adapt to meet the needs of a diverse client base.

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Succession Planning

Many small firms (reports show up to 50%+) have NO succession plan in place.

Firm valuations are dropping as more firms are becoming available. 1.5X-2X multiples 10 years ago have dropped to 0.75X-1.5X

Large firms are struggling with filling the “pipeline” with partner quality staff.

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Pricing

There is a push in the profession to move from hourly based billing to value based pricing.

We want to be paid for providing value and NOT with running up our hours.

Value pricing is a HUGE win-win. New generation of staff doesn’t want to track hours – Because they

know hours don’t matter – value does!

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My Story

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Principles for your Career:- Be Open to Explore Options- When You Find Answer – Go at it 100%- Don’t Burn Bridges- Take Risks- Think Outside the Box- Get a Mentor

Thank you!Contact information:

Michael@DittrickCPA.com@GeaugaCPA

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Questions?

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