The Rise Of the Digital CPA

Transcription

1 The Rise Of the Digital CPA Erik Asgeirsson CPA2Biz President and CEO May 17, 2013 Erik Asgeirsson President and CEO, CPA2Biz CPA2Biz is a subsidiary of the AICPA Provides technology services to AICPA & State Societies Provides solutions to firms to help them build more successful client relationships Erik Asgeirsson, President and CEO, CPA2Biz Industry leader with over 20 years of experience leading technology organizations Consistently recognized as one of Accounting Today s Top 100 Most Influential People BS Electrical Engineering, George Washington University, and MBA in Finance, NYU Stern School of Business 1

2 Agenda CPA2Biz & Firm Solutions Portfolio Digital Disruption in Client Accounting Services & 3 Emerging Mega Trends Client Accounting Service Action Plan Panel Introduction & Practice Assessment App Review CPA2Biz Firm Solutions Portfolio Professional Services Bill Pay LMS Mobile Apps Training General Ledger CPA.com Services AICPA Store Payroll Audit Confirmations Practice Workflow 2

3 CPA2Biz Professional Services Bill Pay Training Professional LMS Services Mobile Apps General Ledger CPA.com Services AICPA Store Payroll Audit Confirmations Practice Workflow The Digital CPA Conference: A Movement 3

4 Accounting Services Digital Disruption & The Next Big Thing A CPA2Biz white paper based on research conducted by Dr. Geoffrey Moore & CPA2Biz - Following Slides Summarize Findings - 21 st Century Darwinian Dynamics Automation Outsourcing Optimization Survival of the Fittest Commoditization Differentiation Specialization 20 th Century Firms Will Either Evolve or Dissolve 4

5 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 Accounting Services: A New Century The Opportunity Ride the wave of demand for outsourcing Leverage technology to achieve productivity The Challenges Commodity practice Low margins Hard to scale Hard to upsell to higher value services A Roadmap to Success A model for evolving Accounting Services as a practice A guide to the technology investments required A strategy for change management 5

6 The Evolution of a Practice Client Accounting Services Roadmap A High-Value Practice A High-Growth Practice A Viable Practice A Necessary Evil 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 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 6

7 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 SOR 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 Stage 1: CAS A Necessary Evil Defining Characteristic Paper intensive, Place specific Reason to Do Courtesy to clients, no risk Reason to Move On Lack of profitability, digital disruption Investment Required Migrate IT systems to the Cloud 7

8 Stage 2: CAS A Viable Practice Defining Characteristic Paperless workflows Reason to Do Profitable business model Reason to Move On Desire to grow Investment Required Online Systems of Engagement Stage 3: CAS A High-Growth Practice Defining Characteristic Online communication & collaboration Benefits Reach & frequency of service delivery Reason to Move On Expand into higher margin services Investment Required Business Intelligence 8

9 Stage 4: CAS A High Value Practice Defining Characteristic Trusted advisor status Benefits High margin project work Reason to Move On Expand into new target markets Investment Required New target market initiative Evolving CAS: Change Management When and How will You Make the Transition? TORNADO MAIN STREET EARLY MARKET CHASM BOWLING ALLEY 9

10 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 Summary of White Paper 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 10

11 Driving Adoption in a Digital Age Technology Talent Most significant challenge Change Management 11