Accounting Industry Disruption - Trends and Technology

Accountants and Technology:
Converging Trends + Technology =
Opportunity
IMA Meonske Conference
April 25, 2014

Why?
4/27/2014 Don Tomoff | Invenio Advisors LLC 2
Indicates Takeaway!

“It has nothing to do with the time
being right or wrong. Storms just
happen.”
Chris Murray, The Extremely Successful Salesman’s Club

“Change is
inevitable. Progress
is optional.”
Tony Robbins

“University leadership in the United
States for the most part is unaware
that the crossroads is ahead. […] The
obvious question is how so many
smart people could miss what seems
to be an inevitable crisis?”
Richard Demillo, Abelard to Apple: The Fate of
American Colleges and Universities (2011)

Download The Presentation
http://bit.ly/2014ima
Search @dtomoffcpa on
Twitter
#2014imapres

How Is Business Changing?
 Mobile – changing expectations
– Is our client service keeping up?
– Proactive or reactive?
 Digital – Imperative now due to Mobile
– Cloud, File Management, Mobile
 Data Analytics (“Big Data”) and Business Intelligence
– Awareness and a solid foundation of knowledge is
becoming increasingly critical
 Career Mgmt / Networking – Social, Information
Mgmt
– “the Internet is your resume…”
How HAS Business CHANGED?

ACCA/IMA Report Reveals Ten Key
Skills for Future CFOs
“While many of today's CFOs have taken the
usual finance stepping-stones toward their
executive roles, they believe tomorrow's CFOs
will need new experiences and key skills to meet
the evolving needs of business”
AccountingWeb Sep 13, 2013
Download Related PDF – The Changing Role of
the CFO - ACCA

So what do companies look for
in a CFO?
The following “position requirements” are excerpts
from a recent public-company CFO search position
description…

CFO Position Requirements…
“Established and proven successful financial
management and expertise.”
“Process oriented; metrics driven.”
“Vigilantly assess new avenues for process
improvement in all areas including close
engagement with all other functional units of
the organization.”
Technical AND Relevant

“Highly developed analytical skills.”
“Ability to analyze, compare, contrast, and
synthesize information in an efficient and
effective manner. Ability to process data and
information in an organized manner and
generate ideas, recommendations,
presentations, etc. is essential.”
Analytical, ability to “synthesize”

“High technical proficiency. Highest level expertise in
Excel, Access and analysis tools is required; must be
leading edge in those programs. Advanced expertise
in Microsoft Office Suite. ERP and financial accounting
system software experience is essential.”
“Obtain, manipulate and integrate data and
information related to and supportive of business
objectives to be integrated into strategic and tactical
discussion, and data-driven decision making.”
Strong “HOW” Knowledge!

“Strong and broad network of professionals
across industries and markets.”
Connected, demonstrated
relationship building

“Analyze and stay abreast of the macro and
competitive environment and financial aspects
of the industry at large and the markets the
company serves.”
Big picture view, able to monitor/assess
rapidly changing landscape

Trends…What We Need to Know?
 Mobile/Digital/Cloud
 Disruption/Innovation
 Data Analytics/Information Management
 Transformation
 Career Management

“In the world of the mobile mind shift, a
customer expects any desired information or
service to be available, on any appropriate
device, in context, at their moment of need.”
Forrester Research
MOBILE/DIGITAL/CLOUD
16

The PC Slowdown…

Did You See This Coming?
 Nest - Acquired by Google Jan 15, 2014
– $3.2 Billion
 WhatsApp – Acquired by Facebook ($19 Billion)
 Twitter – Became a Public Company in Nov 2013
– Valuation of $24.4 Billion on first day
 SnapChat – Google and Facebook Want to Acquire
– Turned down $3+ Billion acquisition deal
 NetFlix – Public Co; Valued at almost $20 Billion
– Blockbuster ignored Netflix; they are out of business

WhatsApp Value in Context?
 Market Cap = $19BB
 $20mm Revenues
 55 Employees (32
Developers)
 450MM Users
 Market Cap = $10BB
 $5.9BB Revenues
 4,875 Employees

Mobile/Digital/Cloud
http://solutions.forrester.com
/digital-business

https://www.youtube
.com/watch?v=Atp9i
bcofaM

http://www.slideshare.net
/thoodcpa/digital-cpa-
staffing-strategies-for-
todays-digital-cpa

Harnessing The Power
of the Cloud, JOA, April
2014
http://www.journalofaccountan
cy.com/NR/exeres/74A9AAD3-
5157-4B3A-9203-
FD9ABB830D82.htm

5 Apps for CPA’s
Journal of Accountancy, April 2014
Ok, this
is mine…

“You can't connect the dots looking
forward; you can only connect them
looking backwards. So you have to trust
that the dots will somehow connect in your
future. You have to trust in something -
your gut, destiny, life, karma, whatever.
This approach has never let me down, and
it has made all the difference in my life.”
Steve Jobs
DISRUPTION/INNOVATION
26

Disruption/Innovation
http://www.slideshare.net/thoodcpa/how-to-grow-and-
avoid-disruption-in-2014 Slide #8
“...your job is no longer
about managing the
present, but inventing
the future…all the time.”

State of Accounting: Can the '3rd Best Career' Survive This Tidal Wave of
Change?
http://www.linkedin.com/today/post/article/20140325101256-11034884-state-of-
accounting-can-the-3rd-best-career-survive-this-tidal-wave-of-change
“Of these shifts, the primary driver is without question,
technology. This was confirmed in the massive future
research we participated in with the AICPA and the CPA
Horizons 2025 Project. This project looked at the major
trends and issues for the future and identified a vision,
purpose and values for the future CPA. The CPA of the future
will be the most trusted advisor that helps people and
organizations shape their future, assuming that they can
master the pace of change, specifically the changes in
technology.”

2014 10 Technology
trends
http://www.pwc.com/
us/en/advisory/digital
-iq-survey/2014-10-
technology-
trends.jhtml
Top Three?
- Business Analytics (44%)
- Socially enabled business
processes (41%)
- Mobile customer
engagement (39%)PwC’s 2014 10 Technology Trends for Business highlights 10 technology trends that
are top of mind among executives as they head into the New Year (Ranked by
current investment levels).

“Find something new. In addition to using your
Business Intelligence solution to look at your
internal data and improve your organization a little
by little, it's necessary to monitor your marketplace.
Watch your customers, see how they react to the
changes you and your competitors make in your
products and services. Engage with them and
weigh their opinions about your product very
highly…” Innovate or Die
http://www.targit.com/en/blog/2014/04/analytics-for-
innovation

“Mobile computing, remote computing,
social media, big data and cloud
computing have enabled CPAs and others
to access, use and manage information
most anywhere, at any time.”
AICPA Insights - Managing the Risk of Emerging Technologies
http://blog.aicpa.org/2014/03/managing-the-risk-of-emerging-
technologies.html

Forget Innovation, Who Is Your Chief Disruption Officer?
http://www.forbes.com/sites/patrickhanlon/2014/03/20/forget-
innovation-who-is-your-chief-disruption-officer/
You don’t see what’s coming. Sometimes that’s
because you can’t see what you’re seeing.
Sometimes it’s just because you haven’t seen it
before. And because you haven’t seen it (or
because no one has explained to you what you
have seen) you don’t know what it is. Our brain,
after all, only identifies what it already has seen,
understood, categorized.

Disruption/Innovation – Why?
 Why do we store files in folders?
 Why do we include a fax number in an email signature?
 Why do we include a business address in an email
signature?
 Does a “manual” signature mean ink on hardcopy paper?
 Why do we deliver hardcopy reports to clients?
 Is it really necessary to ask for directions?
 Why do we prepare account reconciliations by hand (in
Excel)?
 Why does the line “limited access to email” still appear in
auto-responses to emails?
 Why do we need to remember passwords?

http://www.businessinsider.com/the-future-
of-retail-2014-slide-deck-sai-2014-3#-1

“Errors using inadequate data are much less
than those using no data at all.”
Charles Babbage
DATA ANALYTICS/INFORMATION MGMT
“It is a capital mistake to theorize before one
has data.”
Arthur Conan Doyle
35

Data Analytics
“…few such professionals have reportedly been
able to catch the wave. A big reason may be that
those involved with internal and external financial
reporting are limited, by training and inclination, to
working with structured data – the kind that can fit
readily into tables, Excel spreadsheets and,
ultimately, financial statements.”
Accounting’s Big Data Problem
Reality is swiftly outpacing the ability of accountants to embrace Big Data.
How can they catch up?
http://ww2.cfo.com/management-accounting/2014/03/accountings-big-data-problem/

Data Analytics
Big Data?
Just Think DATA!

Data Analytics
The College Degrees And Skills Employers Most Want
http://www.forbes.com/sites/susanadams/2014/04/16/the-college-degrees-and-
skills-employers-most-want/

Data Analytics
Accountants? START WITH EXCEL!
Excel 2010 (Slaying Excel
Dragons) Video Series (1-53) by
Don Tomoff
http://flip.it/Mu85s

Data Analytics – Excel Tip!
http://www.asap-utilities.com/

Data Analytics
Microsoft Access
QlikView
Tableau

Data Analytics - QlikView

Data Analytics - Tableau

Info Mgmt – Mobile Dashboards
Create A Dynamic Dashboard Using Google Docs
http://bit.ly/1piJB90

Info Mgmt – At-A-Glance

“First comes thought; then organization
of that thought, into ideas and plans;
then transformation of those plans into
reality. The beginning, as you will
observe, is in your imagination.”
Napoleon Hill
TRANSFORMATION
46

Transformation – PwC 10 Minutes
“Many companies spend
upwards of 60% of their
time just accumulating,
manipulating, and
validating data.”
...yet many organizations still
use non-automated systems and
spreadsheets to track and
manage data, which inherently
puts them at greater risk for
mistakes. Nearly a third of
companies we polled say they
manage their tax documents
through email, which makes it
time-consuming to find the data
needed when tax deadlines
loom.http://www.pwc.com/en_US/us/10minutes/assets/pwc-10minutes-transforming-tax-
function.pdf

Transformation – Fixing Finance
“This kind of work is gaining favor because a
growing number of CEOs are embracing what
Professor Tom Davenport of Babson College
calls “competing on analytics,” i.e., crafting
strategies based on data-driven insights.
Finance people, with their analytical bent and
skills, are poised to play a vital role.”
Fixing Finance: Work in Process - CFO
http://ww2.cfo.com/management-accounting/2014/03/fixing-
finance-work-process/

Transformation – Why You Must
Adapt
“The point is that new technologies are
being developed right now that will
completely change the we do business in
20 years. We don’t know exactly what they
will be, but I guarantee you the face of
business will change again in 20 years.”
Frustrated With Changing Technology? One Reason Why You Must Adapt
http://brentmkelly.com/frustrated-with-changing-technology-one-reason-why-
you-must-adapt/

Transformation – Automating
Reconciliation
The Virtues of Automating Reconciliation
http://ventanaresearch.com/blog/commentblog.aspx?id=4331
“...volumes of data are too great to make this
realistically feasible, and technology provides
accountants with faster and more effective
means of spotting patterns and familiarizing
them with the peculiarities of the company’s
books.”

Transformation – Put Yourself Out
of Business
Why You Should Put Yourself Out of Business If You Want To Save Your Company
http://www.fastcompany.com/3027000/work-smart/put-yourself-out-of-business-if-you-
want-to-save-your-company
“IF YOU DON’T PUT YOURSELF OUT OF
BUSINESS, SOMEONE ELSE WILL.
This is one of the most important pieces of advice
I’ve learned in my career. With market conditions
rapidly changing, companies need to constantly be
disrupting their industries to stay ahead of the
competition.”

Transformation – Be Willing To
Change
The best business advice ever: Be willing to change
http://www.macpa.org/blog/3362/the best business advice ever-be willing to change
“THE BEST BUSINESS ADVICE EVER: BE
WILLING TO CHANGE
New stuff doesn’t fit neatly into the rigid confines of
our closed minds. The latest technology won’t work
for us because we don’t work that way. You won’t
succeed because you don’t think like us. We don’t
need to change because we’re already making
plenty of money.”

Transformation – Be Proactive!
Reactive CPAs Lose Clients, Survey Says
http://www.accountingtoday.com/news/reactive-cpas-lose-clients-survey-says-70335-
1.html
“They were particularly interested in having
their CPA be proactive with technology for
their business (85 percent) – though only 13
percent think that their accountant is ahead
of the curve on technology.”

Career Mgmt – Digital Reputation
“Online, just like in the real world, actions and words speak loudly.
Unlike real life though, your digital footprints are there for anyone to
find… These disparate pieces are then assembled by employers,
schools, friends, lovers, enemies, and anyone and everyone who wish
to learn something more about you. …whatever the reason, today
these pieces construct a semblance of you and whomever sifts through
your online legacy is left to their own surmise. This is too important to
leave to chance. Online is the new real world. This is your life.”
Hello, It's Nice to Meet you...Again: Your Digital Reputation
Precedes You - Brian Solis
http://www.briansolis.com/2014/02/digital-reputation-precedes/

Career Mgmt – The Internet Is
Your Resume
“Before anyone asks to see your resume,” she says,
“they’ll undoubtedly have checked you out on the
web. What others say, true and false, is visible 24/7.”
The resume you create becomes almost irrelevant; a
Google search of your name is essentially the
resume the world has created for you.
Reputation 3.0: The Internet Is Your Resume — Dorie Clark
http://dorieclark.com/reputation-3-0-the-internet-is-your-resume/

Career Mgmt – Be Visible

Career Mgmt – Lucky People
5 Things Super Lucky People Do
http://www.inc.com/kevin-daum/5-things-super-lucky-people-do.html
“Connect with as many people as possible. The
key to success is access to opportunity. Access
comes from influence. If you're influential, people
will come and bring opportunities to you.”

Career Mgmt - Reinvent
“The message that comes with this new paradigm is this; if
you're still sticking around the same job for more than 5-7 years,
you are degrading you employability for future jobs, and
potentially you are slowly limiting your knowledge base since
you are not doing anything new. Today's work environment
moves at the speed of technology, and you need to move with it,
or risk becoming a dinosaur.
Unlike tools, humans have the ability to update and redesign
their usefulness. Be willing to evolve in your industry, or even
into another one.”
Understanding Your Value to Your Employer
http://www.huffingtonpost.com/gil-laroya/understanding-your-
value_b_4944325.html

Career Mgmt – Reinvent…
Seth's Blog: Cracking the pottery
http://sethgodin.typepad.com/seths_blog/2014/04/cracking-the-pottery.html
“When you get in the habit of breaking your own
pottery, it's a lot easier to ask, "what if?" If you
know that it's okay to break it later, it's a lot
easier to fall in love with it now.”

All Resources - Flipboard
Check out #IMA-KSU-2014 by Don Tomoff
http://flip.it/FnsvW

All Resources - Excel
Request a copy of
the Resources
Spreadsheet

Start Connecting the Dots

But Remember…

Questions
Contact Information:
Donald R. Tomoff, CPA, MBA
Director
Invenio Advisors LLC (Overview)
P 440-879-8632
E don@invenioadvisorsllc.com
Find Don on the Web
4/27/2014 66Don Tomoff | Invenio Advisors LLC

Accounting Industry Disruption - Trends and Technology

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