Professional Issues UpdateFall, 2007 Edition

Tom Hood, CPA.CITP

CEO & Executive Director

Maryland Association of CPAs

CPA Redux

Re-dux - adj. brought back,

resurgent

“CPAs ARE the DISCIPLINE in business!”

Jim Collins

CPA Redux - What is a Profession?

Professions enjoy a high social status, regard and esteem conferred upon them by society. This high esteem arises primarily

from the higher social function of their work, which is regarded as vital to society as a whole and thus of having a special and

valuable nature.

Source: Wikipedia

CPA Redux - What is a Profession?

All professions involve technical, specialized and highly skilled work. Training for this work involves obtaining degrees and professional

qualifications without which entry to the profession is barred. Training also requires

regular updating of skills.

Maryland CPAs are required to achieve the 4 E’s to qualify for licensure1. Education – bachelor’s degree + 30 hours2. Examination – Pass the Uniform CPA Exam3. Ethics – Maryland requires a separate ethics exam4. Experience – 1 year of experience working with a CPA

Thereafter, they are required to complete 80 hours of continuing education every two years, including four hours of ethics training.

Source: Wikipedia

Welcome – Tom Foard, CPAMACPA Chair of the Board

Learning Objectives

• CPA Redux – revisit what a CPA is in today’s global economy• Gain an understanding of the biggest changes in the CPA

Profession at the international, national, & state levels • Understand the latest developments in compliance, CPA

licensing and multi-state practice issues• Identify the major State Legislative & Regulatory threats to

your business and your CPA License and what you can do about them

• How to manage four generations at work and dealing with this "new" twenty-something workforce

• What you can do to win the talent war - recruiting & retaining top talent

• Learn how FASB's new Private Company Financial Reporting Initiative affects your firm or company

First Up: The Big Picture…

• Increased economic globalization• Growing fiscal pressures on governments• Escalating health care costs• Shrinking workforce• Changing U.S. demographics• Growing focus on knowledge-based work• Lightning-fast technological shifts• The rise of Web 2.0 social media

Right now…

History of the Profession

IRS

OIG

Regulatory Structure of CPA Profession

SOX is the driver…

Editorial ReviewsBook Description

A simple guide to the complex new accounting rules under Sarbanes-Oxley

CPAs, lawyers, business owners, and corporate managers of all kinds are currently dealing with the biggest change in corporate governance since the

1930s. As full implementation of the Sarbanes-Oxley Act gets under way-bringing large changes in corporate accounting and disclosure-managers

everywhere need a plain-English guide that explains the legislation simply and practically. Sarbanes-Oxley For Dummies provides an implementation framework

for firms as they struggle to come into compliance; explains key provisions in the legislation; and identifies specific actions needed to achieve

compliance. In addition, this straight-to-the-point guide presents a summary of best practices, smart

business policies, and invaluable compliance checklists.

Jill Gilbert, JD, CPA (Milwaukee, WI) is a former tax consultant, and an attorney who runs her firm's Sarbanes-Oxley consulting division. She is also

the author of two For Dummies technology titles.

12

500 convictions30 CEOs

The Professions - Top Five Issues

1. Professional Legislation and RegulationTax Strategy Patents, Mobility, SOX, Maryland changes

2. Pipeline – Next Generation CPARecruitment / Retention / Staffing / Generational Issues

3. Public/Professional Accountability4. Private Company Financial Reporting

(FASB)5. Performance

Trends in CPA Firms and Business, Industry, Government, NFP & Education

So what are we doing about it? – MACPA’s Agenda

Professional Legislation / RegulationProfessional Legislation / Regulation

Update

2007

What you need to know

• Federal level (congress)– Tax patents– SBWOTA of 2007 & new Preparer Penalties– Tax-preparer licensing / regulation (federal &

state)

• State Legislation - Maryland– Sales Tax on Professional Services – Mobility– Tax Preparer Licensing and Attack of

Accountants– Civil Liability Reform

Say what?

Tax Return Preparer Standards

• Raises reporting standard for preparers (“more likely than not”) above the standard for taxpayers (“substantial authority”)– potential conflicts of interest - preparer & client– affects nature of representation of taxpayers &

taxpayer’s right to representation.

• “More likely than not” standard results in a fundamental change in the role of the preparer– advocate to advisor. 

Need to turn back these preparer rules

S 2369 – Tax Patents

Major Elements of our legislation•Allows the granting of patents for tax strategies•Immunity from infringement for tax payers and preparers•Software carve out

•Allows for continued innovation in the development of tax preparation software – TurboTax, TaxCut•Other Bills – Patent Reform of 2007•Tax Shelters

UPDATE -Passed HR 1908

Sales Tax on Services

March 9, 2007“Expect states to focus on sales taxes.

They’ll target service Industries…everything from accounting to beauty

salons…many of which aren’t taxed at allright now.”

Sales Tax on Services

Special interests target CPA Services – League

of Women Voters & Progressive Maryland

MACPA took a Proactive ApproachMD Chamber Sales Tax Study

• All taxes are not created equal

• Sales Tax on Services will costs jobs

• Business is paying its fair share (and then some)

• Meet w/ Gov, Speaker, Senate President, and Tax writing Committees before special session

Educate legislators/Mobilize membersTen Criteria for Evaluating Tax Law

• 1. Simplicity: The tax law should be simple so that taxpayers understand the rules and can comply with them correctly and in a cost-efficient manner.

• 2. Fairness: Similarly situated taxpayers should be taxed similarly.

• 3. Economic Growth and Efficiency: The tax system should not impede or reduce the productive capacity of the economy.

• 4. Neutrality: The effect of the tax law on a taxpayer’s decisions as to how to carry out a particular transaction or whether to engage in a transaction should be kept to a minimum.

• 5. Transparency: Taxpayers should know that a tax exists and how and when it is imposed upon them and others.

State Tax Committee Chair Bev Richard & Andy Bareham on tour to inform MACPA members

Educate legislators/Mobilize membersTen Criteria for Evaluating Tax Law

• 6. Minimizing Noncompliance: A tax should be structured to minimize noncompliance.

• 7. Cost-Effective Collection: The costs to collect a tax should be kept to a minimum for both the government and taxpayers.

• 8. Impact on Government Revenues: The tax system should enable the government to determine how much tax revenue will likely be collected and when.

• 9. Certainty: The tax rules should clearly specify when the tax is to be paid,how it is to be paid, and how the amount to be paid is to be determined.

• 10. Payment Convenience: A tax should be due at a time or in a manner that is most likely to be convenient for the taxpayer.

70 + Bills in special sessionHow do you win?

• 4 MACPA Committees– Legislative Executive Committee– CPA Committee for Political Action– State Tax Committee– Board of Directors

• Inform & mobilize members– CPA Legislative Insider– Keyperson alerts– E-mail

• Activate Grassroots– 300 + letters & e-mails

Tax Reform Act of 2007

• Sales Tax increase to 6%• Sales Taxes expanded to computer consulting• Corporate Income Tax Rate from 7% to 8.25%• Extensive new reporting requirements (2007)• Individual Income Tax Rates new brackets

– 5.00% for $200,000– 5.25% for $350,000– 5.50% for $500,001 and up

• Increase in car titling tax to 6%• Tobacco Tax + $1.00 per pack

UPDATE – Defeated Sales Tax on CPA services!

MD Rate 11.5%

What would happen if we weren’t there?

UPDATE – Defeated Sales Tax on CPA services!

"There's no strong voice of landscaping, computer services and arcade owners. …that's one of the reasons they got picked.” - former Senator Barbara Hoffman

"An old adage among politicians is that if you don't holler at tax-raising time, you'll get hurt." –

Lou Panos

State Boards of Accountancy: Regulation of Interstate Practice

• TREND: Aggressive application and enforcement by some states

• TREND: Historic agreement & effort by NASBA, AICPA, State CPA Societies

• Only 4 States with real mobility (OH, VA, WI & MO) at start of 2007

• New Principles of UAA:– No notification– No fees– No add-on requirements– Automatic jurisdiction over licensee

Mobility

WA

OR

CA

NV

ID

MT ND

SDWY

UTCO

AZ

NM

AK

HI

TX

OK

KS

NE

MN

IA

MO

AR

LA

MS AL GA

FL

WI

IL

MI

IN

KY

TNSC

NC

VAWV

OH

PA

NY

VTME

NH

MA

RI

NJ

DE

MD

CT

The Start of 2007 Sessions (December 2006)

DC

Mobility

Mobility & Practice Privilege

WA

OR

CA

NV

ID

MT ND

SDWY

UTCO

AZ

NM

AK

HI

TX

OK

KS

NE

MN

IA

MO

AR

LA

MS AL GA

FL

WI

IL

MI

IN

KY

TNSC

NC

VAWV

OH

PA

NY

VTME

NH

MA

RI

NJ

DE

MD

CT

Looking Forward to ‘08

DC

Legislative ActionMobility Board Support

NH

Mobility First Steps Targets for 2008

Safe States: MO, OH, WI, VA, TX, LA, TN, IL, RI, MN, IN

Next Steps in Maryland

State Board of Public Accountancy voted to support Section 23 of UAA

Get bill sponsor• Seek approval from

Secretary Perez & DLLR (in progress)

• Introduce in Jan, 08• Mobilize grassroots

Montgomery County CPAs meet with Delegate Brian Feldman (third from left) to discuss private sponsorship of mobility legislation

Maryland Tax Preparer licensing

This bill would create a MD Certified / Licensed Income Tax Preparer

Tax Preparer Licensing

• This letter was sent to MACPA by concerned members

• Beware of misinformation by

unlicensed Accountants (MSA)• Their agenda is showing…

•The current licensing of P.A.s results in a second tier professional that is not functionally different than a CPA• The public would benefit from the licensing of a second tier of accounting professional who has proven ability through education, examination, ethics and experience, but is more limited in their scope of practice than a CPA.• The second tier of licensing would be more meaningful to the public and give them a true choice in the matter of choosing a professional.

Tax Preparer Licensing – version 2.0 Oklahoma – HB 1752

Tax Preparer Licensing – Risk to CPAs?

Unlicensed Accountants

Unlicensed accountants are using tax preparer legislation as step to second-tier accounting license.

AccreditedBusiness

Accountant

Alert to State CPA Society Executives:

CPAVS

• Problems with Licensing Tax Preparers– Costly– Confusion of public with CPA services

that have higher public interest– May not stop unethical/illegal preparers

• Continuing work with consumer group & state to find reasonable approach – Consumer education approach– Protect low-income taxpayers – Emphasis on enforcement first– More fiscally responsible

• Already Successful in …– Exempting CPAs from any proposed

licensing & CPE requirements, and – getting a seat on the proposed State

Board

Our Approach – Consumer EducationProtect the CPA License & Public Interest

MACPA & the State BoardMD Regulations – uniformity & simplicity

CPA Self-study requirements modernized & uniform CPE for Peer review – effective 12/01/07 CPA Exam Educational Requirements

Meeting held with educators – May 5, 2007 Proposal voted by board Published in MD Register – comments due by 11/15/07 Should be effective as of January 1, 2008

Mobility technical corrections – Proposed for 2008 4 in 10 (removing out-of-state requirement) Educational Requirements retroactive for reciprocal

Update

PipelinePipeline

2007

ISSUE

• Staff Shortage• Generational Issues• Talent Management• Training Trends• Training Opportunities

Demand Continues to be Great

The need for CPAs in the U.S., post-Sarbanes-Oxley, is at an at all-time high, resulting in aggressive competition between firms and companies for their services.

a CPA

Accounting is Hot!

• Accounting is the new No. 1 major on college campuses – Publication: Central Penn Business Journal: Date: May 13, 2005

• Based on the number of college freshmen who are making it their career choice, accounting is the new 'sexy' college major. Yes, accounting.

– 2005 survey: National Association of Colleges and Employers.

41

And CoolAnd Cool

CPA – Cool People Apply

Staff Shortage + Four Generations in workplace = Trouble!

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

Matures Boomers X'ers Millenials

StaffShortage

Another view…

Generational Differences

45

Four Generations in the Workplace

• Matures – 1909-45• Boomers – 1946-64• Gen X – 1965-80

• Millennials - 1981 + up (Y2K, Netgen, Echo-boom, Gen Y)

Which one are you?

Issue: Generation Differences

The Matures (born prior to 1946)

• Duty, honor, country• Dedication, sacrifice• Conformity, blending, unity – “We

First”• Patience• Hard, hard times then prosperity• National pride• Doing a good job was most important• Age = Seniority

The Baby Boomers (’46 to ’64)

• Work ethic = Worth. “Workaholic”

• Competitive

• Success is largely visible – trophies, plaques, certificates, etc.

• Optimistic

• Consumers

• Defined by their work

• We are the world, We are the children

Generation X (’65 to ’79)

• Question authorities.• Their heroes are people they’ve met; that they know.• Raised as their parent’s friends.• Saw lifelong employment end – don’t believe it will

happen to them.• Can be cynical. Can be pessimistic.• Time horizons are shorter than the Boomers or

Matures.• Time is a currency.• Carpe Diem approach – Seize the day!• “Prove it to me.”

Millennials (Since 1980)

• Individuals w/ a group orientation (team?)• Optimistic• Programmed. Coddled. Well looked after.• Hard time focusing on anything.• Busy & stressed at a young age.• Like “X”, raised as their parent’s friends.• Are not adults. Are not adolescents. “Adultolescent”

phase.• “Future” is very short term.• Huge goals. Clueless on the execution.

The way it is supposed to work…

• A senior generation assumes they know what the younger generations want (or should want) for themselves; how they should define “success.”

• The senior generation then prescribes a “pay your dues” process to achieve that “success.”

• The senior generation thinks, in the back of their mind, that the younger generations will never have to work as hard as they did to become “successful.

Consider the following:

“What happens when generations define success differently?”

“How do the conflicting definitions of success affect how we motivate, coach and encourage in the workplace?”

What the New/Young Professional is saying

The Context Map was used to capture the trends and issues facing the New / Young Professional.

Staff Shortage + generational differences = crisis

And they get it…If I were managing partner…

• Invest in training whole firm on consultative selling• Change expectations – make the investment in

people and training• Supervisory training & Conflict resolution• Get the wrong people off the bus• Fire the “D” clients to match resources with

workload• Implement specialization to give us better focus

and client service

Source: MACPA Leadership Academy Participants, Sept, 2006

CriticalTurning

Point

Succes

s Fac

tors

in H

igh

Perfo

rman

ce O

rgan

izatio

ns

Top 20 Reasons to Stay with a FirmAICPA PCPS

Retention and Recruiting - Bottom Line

• They want to be “engaged” in the firm mission , vision and values.

• They want to be more involved with the client• They are accustomed to real time

communication • They want career growth opportunities and

greater clarity of what it looks like• They want personalized “one fits one” policies • They want interesting, challenging projects

Tom’s Top 5 Workplace Tips

1. Be the right person – versus the right organization

2. Be specific and don’t assume anything

3. Define roles and career path (in easy increments and steps)

4. Invest in training – it has high ROI, and is a retention tool

5. Offer challenging work and reward even small steps

According to the Generational Experts

“It’s easy to say that these simple demonstrations shouldn’t be necessary. Many people say that employees should enter the workforce ready to work. Blame the parents, the schools, the media or something else. But that won’t change the outcome”

“So deal with it”

Motivating the “What’s In It For Me” Workforce- Cam Marston

Public / Professional

Accountability(Standards)

Public / Professional

Accountability(Standards)

2007

ISSUE

Lots of changes on the horizon…

• AS 5 - PCAOB• IRFS – SEC International gets legs• XBRL – SEC mandatory?• Codification Project – FASB

– Convergence with international• Clarity Project – ASB

– Convergence with international– Risk-based standards already in int’l format (SAS 104-

111)• SAS 112 Communication• Internal Control – COSO• Fin 48

Standards Convergence

PCIE Report - OMB A-133 single audits

“Based on numbers of audits, the results show significant percentages of unacceptable audits

and audits of limited reliability.”

1. Revise & improve standards & guidance

2. Establish minimum requirements on training (16-24 hours CPE)

3. Processes to address unacceptable single audits

4. Next up GAO study

Failed

CPA Profession in the spotlight

International

Private Company Financial Reporting

Private Company Financial Reporting

2007

ISSUE

Big GAAP – Little GAAP?

67

Private Company Financial Reportingwww.pcfr.org

http://www.pcfr.org

PCFRC’S Agenda for Existing GAAP

• FIN 48• FIN 46R• FASB 123R• FIN 48 was selected first because of the upcoming effective

date.

Recommendation - The PCFRC recommends that the FASB delay the effective date of FIN 48 for private companies. The effective date should be delayed until 1) clarification and guidance is issued on FIN 48’s for pass-through entities, and 2) further consideration is given to the usefulness of FIN 48’s disclosure requirements for private companies. Further, this delay will allow for a higher level of awareness and education about FIN 48.

APPROVED

PerformanceTrends & IssuesPerformanceTrends & Issues

2007

ISSUE

IPA Consultant Predictions – Jan 2006• “An increase of larger firms will result from

an increase in mergers. Accounting firms will look more like law firms in terms of size.” -Marc Rosenberg

• “There will be more large firms.” – Marc Rosenberg

• “Mergers and acquisitions will increase.” – Jeff Pawlow, The Growth Partnership

Trends Facing CPA Firms

PCPS / TCPS 2007 MAP Survey

1. Tax complexity & changes

2. New regulations & standards

3. Keeping up with standards

4. Keeping up with Technology

5. Work/Life Balance

1. Finding qualified staff

2. New regulations & standards

3. Tax complexity & changes

4. Keeping up with standards

5. Retaining staff

Sole Practitioners Firms 2 to 5

PCPS / TCPS 2007 MAP Survey

1. Finding qualified staff

2. New regulations & standards

3. Retaining Staff

4. Keeping up with standards

5. Succession planning

1. Finding qualified staff

2. New regulations & standards

3. Retaining Staff

4. Succession planning

5. Developing new partners

Firms 6 to 10 Firms 11 to 20

PCPS / TCPS 2007 MAP Survey

1. Finding qualified staff

2. Retaining staff

3. Developing new partners

4. Work . Life balance initiatives

5. Management of human resources - workload

Firms 21 or more Running these firms is like…

Top Ten Issues facing Large CPA firms

• Finding and retaining quality staff

• Succession planning • Attaining and managing

growth • Technology

implementation • Training

• Leadership development • Profitability • Client retention and

development • Government regulation

• Risk management

Source : Inside Public Accounting – January, 2007

Top 5 Issues facing CPAs in Business & Industry

1. Lack of Time

2. Standards & Regulatory Overload

3. Staff Shortage

4. Dealing with Technology

5. Competition & the Speed of Business

Top Five Issues facing their companies

77

Managing Financial Statement Preparation and Auditor Relations: In your opinion, has the service provided by your firm’s auditors in each of the following areas, improved, worsened or stated the same since accounting reforms of recent years?

78

Improved Same Worse Don’t know

Quality of work 39% 52% 1% 8%Communication and/or responsiveness to the audit team

34% 56% 1% 9%

Interpretation of accounting regulations 30% 59% 3% 8%

Tactical implementation 29% 61% 1% 9%

Strategic Guidance 27% 62% 2% 9%Ability to adequately staff engagements 22% 67% 2% 9%

CFO – Auditor relationsPublic Accounting firms are improving

Overwhelmed?

• Maybe you need “Breathing Lessons”– How CFOs can thrive under pressure

• “CFOs today find themselves scrambling in more directions than a good bartender on

New Year’s Eve. And no wonder, pressures for accountability and

performance have never been higher.”• Lesson # 4

– “Focus on specific decisions that must be made then work backward to determine what information you need”

79

Business & Industry CPAHats in the Belfry

Courtesy of Tom Foard

The Four Faces of Finance

Business & Industry & NFP

• SAS 104-111 & SAS 112

• New Risk-Based standards will change audits – significantly

• Webcast scheduled for mid-December

• Townhall resource page has SAS 112 toolkit

• Get up-to-speed on internal control (COSO), etc.

Emerging Trends / Issues

• Enterprise Risk Management

• LEAN Accounting

• Supply Chain Management

• GREEN / Sustainability

• Enhanced Business Reporting / SEC Simplification

AICPA Top 10 Technologies

84

1. Information Security Management2. Identity and Access Management3. Conforming to Assurance and Compliance

Standards4. Privacy Management5. Disaster Recovery Planning and Business

Continuity Management6. IT Governance7. Securing and Controlling Information Distribution8. Mobile and Remote Computing9. Electronic Archiving and Data Retention10. Document, Content and

Knowledge Management

NEW

NEW

NEW

NEW

THIRD YEAR AT #1

What is XBRL?

• eXtensible Business Reporting Language• International platform for business reporting• An information standard that enhances the quality and efficiency

of business information for internal and external consumers• Supply chain understanding of a standardized way to

communicate business information • Provides information with identity and context that can be

understood by a range of software applications allowing seamless interface with databases, business reporting systems and spreadsheets

• Can be used to enhance compliance processes

85

Special session on XBRL at Maryland Business & Accounting Expo on June 17 & 18, 2008

Baltimore Convention Center

Special session on XBRL at Maryland Business & Accounting Expo on June 17 & 18, 2008

Baltimore Convention Center

XBRL: The Bar Code of the Business Reporting World

Efficiency

SavingsQuality

86

XBRL: What can you do?

• Educate yourself and your team – XBRL conferences and sessions– Talk with others who have implemented

• Investigate/target process areas

• Develop Project plan and ROI assessment

• Assess tooling needs, availability, fit

• Implement and assess cost/benefit realities

87

Web 2.0 is here…

“Web 2.0 generally refers to a second generation of services available on the WWW that lets people collaborate and share information online.” - Wikipedia.com

Shared Pictures =

Shared Knowledge =

Shared Bookmarks =

Shared News =

Shared Videos =

Shared Everything =

Web 2.0 & You

Web 2.0 continues to grow

Try this professional networking site

Coming Soon – MACPA training on Web 2.0Coming Soon – MACPA training on Web 2.0

www.linkedin.com

MACPA has a Second Life…CPA Island

Connect - MACPA Blogs, listservs

• www.cpasuccess.com• www.newcpas.com• www.cpalegislativeinsider.com

Using Web 2.0 to connect and inform our members and connect to the next generation CPA

Fed & state tax, PFP, practice & industry, & NFP listservs

Subscribe byE-mail here

What is your Association doing

about this?Connect – Protect

- Achieve

What is your Association doing

about this?Connect – Protect

- Achieve

2007

ISSUE

Promoting the CPA License!Filling the pipeline…

1. Student members

2. CPA Candidates 3. New/Young Professionals 4. Leadership Academy

1.

Recruit

Students

2.

Promote

CPA

License

4.

Fast

Track

Career

3.

Build

CPA

Skills

Issues addressed:

•Retention

•Recruitment

•Succession Planning

•Leadership

•Staffing

•Generational Issues

1. Student Memberswww.tomorrowscpa.org

Student Recruitment is paying off!www.cpasuccess.com

2. Promote the CPA licenseThe “New” CPA Exam

2. Promote the CPA license

• 150 Hours of Education

• Group I – 27 semester hours in accounting subjects– Auditing (3 hours)– Managerial Accounting (3 hours) – US Federal Income Tax (3 hours)– Financial Accounting (9 hours)– Accounting Electives (9 hours)

Maryland Educational requirement

Uniform &

Flexible

2. Promote the CPA license

• Group II - 21 semester hours in business subjects (at least five of the following subjects:– Economics– Statistics– Corporation or business finance– Management– US Business Law– Marketing– Business Communication

• Ethics – Business, accounting, philosophy of ethics or a course that examines a framework for ethical decision making

Uniform &

Flexible

Maryland Educational requirement

What are the four parts of the “new” CPA Exam?1. Auditing & Attestation

2. Business Environment Concepts

3. Financial Accounting & Reporting

4. Regulation

The “New” CPA exam

update

CPA Exam changes

• Paper-based

• 2 x year May & November

• 5 sections

• Computerized

• Anytime

• 2 months per quarter

• Pass all sections in 18 months (to keep passed sections)

• 4 sections

• 70% new content!

Then: Now:

update

2. Promote the CPA license

Next date : June 17, 2008At the Maryland Business & Accounting Expo

Maryland DLLR Swearing-in of new CPAs

Swearing-in Ceremony

What you can do to promote the CPA?

• Understand the “new” CPA Exam

• Encourage MACPA candidate membership

• Use CPA Exam tracking tool to track employees progress

• Support the swearing-in ceremony

• Create / reinforce firm/company culture that celebrates CPAs

3. New / Young Professionals

NYPN All member holiday partyMaryland Zoo (in Baltimore)December 13, 2007 6-10pm

“CPE - Certified Penguin Extravaganza”

Defeated Sales Tax on Services 5xDefeated Comparative Fault Legislation 13xDefeated Tax Preparer LicensingDefeated Increases in Filing Fees 3xPrevented MD SOX for private cos. - SB 560Passed Separate Funding for our State BoardPassed Mandatory Peer Review &

RegulationsPassed Ethics CPE Requirement

Connect – Protect - AchieveWhy we need a seat at the table?Come help us “holler”

“An old adage among politicians is that if you don't holler at tax-raising time, you'll get hurt." - Lou Panos

• Numbers Count – 188 Legislators• Regulators in “hyper-active” mode• 2,000+ bills in 90 days• Other State Activity aimed to correct problems in

accounting profession• Special interests targeting CPAs• Federal, State, Regulatory levels are all activeCPA Day in Annapolis – January 23, 2008

Protect - Legislative Advocacy“our best defense is a strong offense”

“No man’s life, liberty or property are safe when the legislature is in session.”

- Mark Twain

2008 Advocacy Agenda

• Stopping Sales Tax on Services

• Preventing Trial Lawyers from making it easier to sue CPAs & Business

• Preventing unnecessary Tax Preparer Licensing

• Enabling your right to interstate practice - Mobility – Section 23 of UAA

http://www.cpalegislativeinsider.com/Keep up-to-date with our legislative insider blog:

Connect - Financial Literacy – Promoting the CPA

• Financial Fitness calendars• Serving those who serve – National Guard• Taxpayer Questions• Legislative Tips

Protect your license &Differentiating the CPA

• BBJ Supplement

• Smart CEO

• Articles & PR

• Managing our Brand

Connect – you to your Profession

• CPA Communities – Chapters, Committees, New Young Professionals, Tomorrow’s CPAs, Task Forces

• Professional Development – public and in-house, technical to executive development

• Updates – e-newsletter, Statement, Web, member call center

• Business & Industry Conference• Annual Meeting• CPA Day• Quality – Ethics & Peer Review• Swearing-in Ceremony for New CPAs June 17, 2008 Baltimore Convention Center

Achieve Success – Compliance & Reliance

NASBA CPE Tracker

Skills for the CPA of the Future - Leadership, Strategic & Critical Thinking, Focus on the Customer, Client & Market

“MACPA leads the nation in on-

site custom training for

CPAs” - John Toman VP AICPA

Multiple jurisdiction CPEOn-site Training

Achieve! Top CPE in Nation

• Maryland Business & Accounting Expo – 16 hours of CPE - $250

• MACPA1040 Fast Track “it’s better than Gear-Up!”

• Self-study – AICPA CPE Express

Achieve! Member resourcesMACPA’s Trusted Partners

• Provident Banking

• RJP Insurance

• AON

• Purchasing Power of the profession– Savings of up to 70% off!

CPA Redux - the Maryland CPA!

What STuck out for you?

Questions & Discussion

Learning QuestionsFeedback Form

MACPA Connect-Protect-Achieve!Fast tracking your road to success

Resources from today’s programAvailable at www.macpa.org

• MACPA’s Town Hall Resource Page

http://www.macpa.org/Content/Content/23456.aspx• Websites & Blogs

www.tomorrowscpa.org (high school & college students)

www.bizlearning.net (On-site catalog of programs)• MACPA’s Blogs

www.cpasuccess.com CPA Success tips

www.newcpas.com Fast Track your career here

www.cpalegislativeinsider.com Legislative/Regulatory news

www.cpaisland.com CPAs on Second Life

Save these dates…

• Technology Conference – December 3, 2007• Don farmer Tax Update – December 6, 2008• Member Holiday Party – December 13, 2007

Maryland Zoo in Baltimore• CPA day in Annapolis – January 23, 2008• Maryland Business & Accounting Expo – June

17 & 18, 2008• MACPA’s Fast Track 1040 Tax – get in “high

gear” next year!

Tom Hood, CPA.CITPCEO

Maryland Association of CPAsBusiness Learning Institute

(443) 632-2301tom@macpa.org

www.macpa.orgwww,bizlearning.net