It’s a Great Day to Be a CPA!

As someone who grew up in the small farming town of Belmont, Wisconsin, the past year has been remarkable for me. I’ve visited more than half the states and met thousands of CPAs working in every professional accounting role you can imagine. And I’ve learned something from every one of them.

There’s nothing like talking with CPAs working with or in real businesses facing complex accounting and tax issues to understand what is important to the future of our profession. They understand we need to evolve to maintain our relevance. The confluence of complexity and rapidly evolving technology has accentuated the imperative for change.

We often discuss the four areas I spoke about at my inaugural address last October. CPAs want to modernize their services, which means adopting new technologies and being a step ahead of what the marketplace demands. They’re asking about everything from how auditors can leverage data analytics, to the latest standards from the Financial Accounting Standards Board and the impact Brexit will have on the work they do.

Something else they want to talk about, and the second area where we can shape our own future and ensure relevance, involves the speed in which we are developing new fields of expertise. These efforts are in response to the changing needs and requirements of our clients and employers. Today the world moves too fast to wait.

Say “Yes” to Advancing Our Profession

For nearly 129 years, the accounting profession has preserved an esteemed reputation through a commitment to protecting the public interest and upholding the profession’s core values of competence, integrity and objectivity. Each and every day, CPAs live those values through the work they do for their organizations, employers and clients. You now have a new opportunity to further strengthen our profession and play an integral part in its vitality for the future.  

On March 24, the AICPA governing Council voted to proceed with a member ballot on a proposal that would enhance our profession and position us for continued success far into the future. The proposal already has strong support: 52 state CPA societies; leaders from many CPA firms of all sizes; finance leaders from businesses and organizations worldwide; and the AICPA’s Business & Industry Executive Committee, Private Companies Practice Section Executive Committee, Government Performance and Accountability Committee, Women’s Initiatives Executive Committee, Pre-certification Education Executive Committee, and National Accreditation Commission. We urge you to vote “yes” as well.

Acting Today for a Strong Profession Tomorrow

Every member of the AICPA plays a role in shaping the accounting profession.

The CPA’s reputation and profession’s success rely upon the actions each and every one of us takes every day. Our collective contributions can be seen in many forms. We collaborate to address the evolving needs of our clients and organizations, and to maintain the relevance of the services we provide. Through peer review, standard setting and other activities, we all contribute to helping firms maintain quality in an increasingly complex environment. And in the corporate environment, we work to embed our core values of quality, competency and integrity to improve management accounting which, in turn, enables stronger audits and financial reporting.

Now, there’s a new opportunity for us to play our part in the profession’s vitality for the future. Last week, the AICPA governing Council voted to proceed with a member ballot on a proposal that would enhance our profession across public and management accounting. Specifically, the Institute will be asking members to support a proposal to create a new association with The Chartered Institute of Management Accountants representing the entire accounting profession, while preserving our respective membership bodies. It will enhance advocacy and expand member resources and education opportunities.

Shaping Our Future: Driving a Relevant Profession

I’m honored and excited to be taking on the role of chairman of the AICPA Board of Directors at such a pivotal time in our profession’s evolution. Although today we enjoy tremendous success and respect, we must acknowledge that transformative changes in the business environment pose many potential risks to our relevance. We work in an evolving marketplace, one that’s defined by new technologies, complexity, specialization, a changing workforce, globalization and other mega trends. We know that just because something worked in the past doesn’t mean it will continue to work in the future. Now it’s incumbent on us to forge solutions that will preserve our relevance going forward.

Fortunately, CPAs are starting from a position of strength. Let me share my own story with you.

Like many AICPA members, I’m a first generation professional. I grew up in the small farming town of Belmont, Wisconsin, about 65 miles from Madison. I’ve spent my entire career with Baker Tilly Virchow Krause, except for a two-year stint when I worked as a management accountant for one of our firm’s clients, an automobile dealership. The owner taught me something that’s critical to our profession: a sense of urgency. Emil’s dealerships measured productivity every day and frequently asked customers for candid feedback. I thought these were brilliant ideas and put them to work when I returned to Virchow Krause. We began questioning the established rules and implementing the lessons of urgency and action. We measured revenue in real time and solicited immediate feedback from our employees and clients. Our sense of urgency helped us grow from a small Wisconsin firm to the 13^th largest firm in America. We didn’t wait for the marketplace to determine our future for us.

Maintaining Relevance in a Transformative Time

It seems like only a short time ago that I was beginning a very exciting year as AICPA Chair of the Board of Directors. I’m amazed at how quickly time has passed, and at how much has occurred in the business world during the past 12 months.

My year began with an unforgettable visit to Rome for the World Congress of Accountants (WCOA) last November. The Imperial Sponsor of the event was the Chartered Global Management Accountant (CGMA) designation, a joint effort of the AICPA and the Chartered Institute of Management Accountants (CIMA). WCOA gave me an opportunity to represent the profession, position the AICPA as a global thought leader, and discuss accounting issues with leaders from around the world. The pasta was pretty good, too.