BACK TO THE HEART OF IT ALLReview of Geoffrey Moore’s Research “Accounting Services Harness the Power of the Cloud”

Samantha Mansfield, CPA.com

Samantha MansfieldDirector of Corporate Communications, CPA.com

• 16+ years of experience in tax and accounting technology industry

• Consultant on workflow and web implementations

• Designed and built educational events for practice development

• 2015 - 2016 CPA Practice Advisor “40 Under 40”

• 2016 “Top 100 Most Influential People in Accounting” by Accounting Today

@SnMansfield

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Today’s Discussion Awareness of Trends

4 Stages of Transformation

Objective & Vision Setting

AWARENESS OF TRENDS

Outsourcing

Automation

Commoditization

Differentiation

Specialization

Optimization

20th Century Firms Will Either Evolve or Dissolve

21st Century Darwinian Dynamics

Dr. Geoffrey Moore, “Accounting Services – Harness the Power of the Cloud” whitepaper

Three Mega Trends

2. Virtualizationo From Physically Present

to Digitally Presento Systems of

Engagemento Overcoming Barriers of

Location

1. Digitizationo From Paper to

Paperlesso Cloud Computingo Overcoming Barriers

of Productivity

3. Transformationo From Compliance

Vendor to Trusted Advisor

o Business Intelligenceo Overcoming Barriers of

Commoditization

Systems of Record Systems of Engagement

• Collaborative• Intelligent• Knowledge Based

PAST FUTURE

• Consolidate• Organize • Report

(The Digital CPA )Geoffrey Moore Slide – Adopted for CPA Marketplace

Virtualization

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Overcoming Barriers of Location

Physical Presence Virtual Presence

SALT Compliance

HR Reporting& Compliance

Financial Planning & Financing

Budgeting & Forecasting

Cloud Accounting

Traditional Tax Services

Bill Payment

Vertical Add Ons

Payroll

Expense Mgt

Technology Making an Impact

Where do you fall?Innova

tors

Early

Adopters

(Visi

onaries

)

Early

Majo

rity

(Pragmati

sts)

Late

Majo

rity

(Conserva

tives)

Lagg

ards

CHASM

EARLYMARKET

MAINSTREET

Geoffrey Moore Crossing The Chasm

4 STAGES OF TRANSFORMATION

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13Necessary Evil – What is CAS Really?Perception:

BookkeepingWrite UpAfter the fact reporting

CAS covers a variety of services, including:

Financial Statement PreparationGeneral Ledger/Trial BalanceCash Flow ManagementPayroll Preparation & ReportingAccounts Payable and ReceivableTransaction Processing (BPO)Virtual CFO ServicesControllershipBusiness Advisory

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Necessary Evil – 3 Options1. Maintain status quo little longer

2. Seek partner to subcontract CAS services to

3. Proactively establish a dedicated CAS practice

Establishing the Practice - Strategy

Target a clearly defined target segment

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Specialized and differentiated set of services

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Establishing the Practice – 3 Principles in Selecting Target Market1. Big Enough to Matter

2. Small Enough to Lead

3. A Good Fit with your Crown Jewels

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Expanding the Practice – 4 Key Principles1. Streamline your workflow processes to be location independent – all

online, all digital.

2. Reengineer your internal communications and collaboration practices to support a virtual organization.

3. Engage your clients through digital channels and migrate your interactions online.

4. Extend your target market’s geographical boundaries while maintaining your focus on target industry and core differentiation.

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Deepening the Practice – Capitalize on the Opportunity

Migrate the focus of your client dialogs from compliance to business improvement.

Develop dashboards of key performance indicators that enlighten your clients as to the status and trends in their business.

Proactively educate yourself and your team about the issues driving business changes in your target market.

Participate in the industry forums of your target market, establishing yourself and your colleagues as trusted advisors.

OBJECTIVE & VISION SETTING

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How clear is your vision?Does everyone have the same vision?

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“Being the ‘back office’ has moved from looking out the rear view window to being the navigator… Finance has the ability to drive change because you have the perspective.”

- Safra Catz, CEO, OracleKeynote -“Leading Through Disruption: The Role of Modern Finance”

Source: “CGMA Managing Innovation: Harnessing the power of finance”

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Trusted Advisor “What would a true trusted advisor look like? It really is the exception rather than the rule when we see true trusted advisors in our firms. It takes great courage, rigor and being proactive and anticipatory to continually earn the privilege of being a client’s trusted advisor.”

- Joey Havens, CPA, managing partner, HORNE“You Call Yourself a Trusted Advisor – So What?”

DIGITAL CPA NETWORK

ResourcesCPA of the Future Studyo www.CPA.com/Future-Ready-CPA

Templosion 10 Part series from AICPAo http://www.smartbrief.com/s/2013/08/templosions-impact-com

petition

“Accounting Services - Harnessing the Power of the Cloud”o Dr. Geoffrey Mooreo http://www.cpa.com/whitepapers/accounting-services-harness

-power-cloud

THANK YOU!@SnMansfield#DigitalCPA