harnessthepower nj2014-140505120339-phpapp02-140505124736-phpapp01
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Digital CPA and technology in accountingTRANSCRIPT
The Rise of the Digital CPA Harnessing the Power of the Cloud
presented byGregory L. LaFollette, CPA.CITP, CGMA
Strategic Advisor
Gregory L. LaFollette, CPA, CITP, CGMA
Semi-Retired Vice President of product strategy – CPA2BizAuthor, Speaker, Thought-leader, Accounting Technology Hall of Fame MemberFormer
• Eide Bailly, LLP – Senior Manager, Tax and Technology Consulting (6 years)• LaFollette Consulting, LLP -- Consultant to the industry (12 years)• The CPA Practice Advisor -- Executive Editor (6 years)• Thomson Reuters (Creative Solutions) -- Vice President - Product Strategy (5 years)• LaFollette, Jansa, Brandt & Co. , LLP -- Tax & Technology partner (23 years)
• AICPA Committees• Journal of Accountancy – Technology Advisory Board• Prior Service:
– CITP Credential Committee – Chair (7 years; Member 4, Chair 3)– TECH+/Practitioners Conference -- Planning Committee (6 years)– National Accreditation Commission – ad hoc (3 years)– National Tax Education Program (AICPA/UI) -- Graduate and former Staff Lecturer (12 years)– Top 10 Technology Initiatives -- Review Committee (5 years)– Microcomputer Advisory Services Committee (3 years)
Who we Are / What We Do
How we Got to Where we Are
Whitepaper
Agenda
Who we Are
About CPA2Biz AICPA subsidiary, Formed in 2001
Markets all AICPA products and services, manages AICPA affinity programs, manages
AICPA web properties and leads key AICPA technology initiatives
AICPA Store (www.cpa2biz.com) is ranked by Internet Retailer as one of the Top 500 e-
commerce sites in the US.
Built one of the leading distribution channels to the profession through its Trusted
Business Advisor Solutions program—a portfolio of web-based solutions, training,
resources, and alliance programs transforming the CPA-client relationship.
Headquartered in New York, NY with technology and engineering offices in Santa Clara,
CA, sales office in Dexter, MI, and service and support offices in Durham, NC.
Overarching Principle
We are the leader in guiding the profession’s migration to the cloud through change management, business process education and product and service curation.
How we Got to Where we Are
Painful Changes
1965 - 1975
All manual to Service Bureaus
1975 - 1985
Service Bureau to
Mini-computers
1985 – 1995
Mini’s to Micro’s
1995 - 2005
DOS to Windows
2005 – 2015
Premise-based to
SaaS
Why it Works
CPA2Biz
Tax & Accounting Executive RoundtableThis exclusive CEO-level event is unlike any other. Hosted by CPA2Biz and the AICPA, the event brings together America's top:
• thought leaders• financial minds• SaaS entrepreneurs• government regulators• leadership from top accounting firms• State CPA Societies• and respected journalists...
to address the accounting profession's "move to the cloud."
SOLD OUT
New York, NY - January 28-29, 2014
Digital CPA Conference
Geoffrey Moore
Whitepaper Released
APPS
http://www.cpa.com/conference
Three Mega-trends
Digitization Virtualization Transformation
Digital Disruption in Accounting
• Digitization– From Paper to Paperless– Cloud Computing– Overcoming barriers of productivity
• Virtualization– From Physically Present to Digitally Present– Systems of Engagement– Overcoming barriers of location
• Transformation– From compliance vendor to trusted advisor– Business Intelligence– Overcoming barriers of commoditization
Three Mega-Trends that Matter
Necessary EvilEstablishing the Practice
Expanding the Practice Deepening
the Practice
The Evolution of Accounting Services
Stage 1 - Necessary Evil
•Paper intensive, Place specificDefining Characteristic
•Courtesy to clients, no riskReason to Do•Lack of profitability, digital disruption Reason to Move On
•Migrate IT systems to the CloudInvestment Required
Stage 2 - Establishing the Practice
•Paperless workflowsDefining Characteristic
•Profitable business modelReason to Do
•Desire to growReason to Move On
•Online Systems of EngagementInvestment Required
Stage 3 - Expanding the Practice•Online communication & collaborationDefining Characteristic
•Reach & frequency of service deliveryReason to Do•Expand into higher margin servicesReason to Move On
•Business IntelligenceInvestment Required
Stage 4 - Deepening the Practice
•Trusted advisor statusDefining Characteristic
•High-margin project workReason to Do
•Expand into new target marketsReason to Move On
•New target market initiativeInvestment Required
The Evolution of a Practice
A Necessary Evil
A Viable Practice
A High-Growth Practice
A High-Value Practice
Targ
et M
arke
t Foc
us
Digitization
Virtualization
Transformation
Is Your Firm Trapped in the Pull of the Past?
PULL OF THE PAST
• Paper Checks
• Mailing Lists
• Phone Trees
• Phone Calls
• Voicemail
• Attached Files
• Text Documents
• PowerPoint
• Spreadsheet
• Desktops
• Org Charts
• Published Reports
• Conferences
THE CALL OF THE FUTURE
• Online Bill Payment
• Facetime
• Skype
• Texting
• Presence Detection
• Cloud Sharing
• Images, Video
• YouTube
• Events
• Apps
• Tablets
• Social Graphics
• Shared Content
Automation
Commoditization
DifferentiationSpecialization
Optimization
21st Century Darwinian Dynamics
Why Target Market Focus?• Clients aggregate into market segments
– Communities with shared interests – Self-organized around industry, geography, & profession– Who talk to each other before making buying decisions
• Two lessons from Marketing 101– Cost-effective growth is impossible without target market focus– Tipping point dynamics accelerate your success
• Target marketing success factors– Participate in the segment’s relationship network– Develop domain expertise relevant to the segment– Over-deliver to create strong reference accounts– Encourage word-of-mouth referrals
Action Plan• Select a target market focus
– Big enough to matter– Small enough to lead– Good fit with your skills and interests
• Create “new client” onboarding– Paperless standard– Systems of record in the cloud– Document exchanges in the cloud– Other facilities as needed
• Migrate existing clients opportunistically– Take the early adopters when they are ready– Eventually end-of-life paper-based services
Evolving CAS: Change ManagementWhen and How will You Make the Transition?
Inno
vato
rsEar
ly Ado
pter
s
(Visi
onar
ies)
Early
Maj
ority
(Pra
gmat
ists)
Late
Maj
ority
(Con
serv
ative
s)
Lagg
ards
CHASM
EARLYMARKET
TORNADO
MAINSTREET
Three Proven Approaches• Visionary
– Go ahead of the herd for competitive advantage– Spend big to secure top-notch team & great support– Drive change from the top down
• Pragmatist– Go with the herd to reduce risk– Spend moderately to secure market-leading solutions– Manage change around specific use cases & bellwether teams
• Conservative– Go after the herd to reduce cost– Spend frugally to secure basic services– Manage change around vendor-led training sessions
No right answer—your call
Wrapping Up• Model for Evolving a CAS Practice
– A Necessary Evil– A Profitable Practice– A High-Growth Practice– A High-Value Practice
• Enabling Technology Investments– Digitization– Virtualization– Transformation
• Change Management Strategy– Visionary– Pragmatist– Conservative
Resources at www.CPA.com
REMEMBER
“CLOUD ACCOUNTING”
WILL SOON BECOME
REMEMBER
REMEMBER
“ACCOUNTING”
Thank You!!!