Accounting & Tax Profession 10 Years Ago | Now | 10 Years from Now

1. Accounting & Tax Profession 10 Years Ago | Now | 10 Years from Now LIVE WEBINAR

2. HOSTS SHAWN PARIKH MIKE GOOSSEN, CPA Vice President – Entigrity Remote Staffing CEO – Entigrity Remote Staffing

3. Accounting Profession – 10 Years Ago • Accounting Profession – Now AGENDA • Accounting Profession – 10 Years from Now Learning Objectives • Analysis of Threats • Transforming Threats into Opportunities • 5 Step Model to be Future Ready

4. Accounting Profession – 10 Years before – Year 2009 • Internet was 2G & extremely slow • Everything on Paper • Off the Shelf Software tools • Data was Stored Locally • Cyber Security Risks - Low • Administrative in Nature • Driven by Compliance • Emphasis on Write Up • Less Complicated Rules & Regulations • Expectations • Minimal Communication • Drop-Offs and Pick-Ups Common Practice • Acquisition • Referrals & Direct Personal Meetings • Pricing - Value based and Need based • Reputation – Dependent on Word of Mouth • Bound by Geographic Location • Local Staff Only • Lower Attrition • Increasing Compliance Costs • Manual Work TECHNOLOGY CLIENT ROLE STAFFING

5. Accounting Profession – Now – Year 2019 • Expectations • Consistent Communication – Staying Connected • Online Drop-offs • Acquisition • Social Media and Online Communication • Package driven Pricing • Reputation – Online Presence – 1 Blog/Week | 1 Video/Month • Geographic Boundaries Broken • Shift to an Advisory Role • Shift to Near Time or Real Time Accounting • Emphasis on Insights and Financial Reporting • Increasingly Complicated Rules & Regulations • Remote Working & Virtual Teams a Common Practice • Increase in Attrition of Local Staff • Substantial Compliance Costs • Leveraging Automation for Insightful Work • 4G Internet Connectivity • Cloud Computing • Less Paper • High Cyber Security Risk is a Reality • Emergence of Automation TECHNOLOGY CLIENT ROLE STAFFING

6. Accounting Profession – 10 Years from Now – Year 2029 • Expectations • Real Time Access to Work being done • Personalized Service • Acquisition • Consistent Content Driven Personalized Communication • Highly Competitive Pricing – Driven by Automation & High Skill Cost Effective Remote Workforce • Reputation – Dependent on Reviews, Knowledge Sharing and Engagement with Clients • Small Firms Now will be National 10 Years Later • High Speed 5G Internet Access across the Globe • Plausible shift to completely Cloud based tools • Entirely Paperless • Cyber Security Insurance – Can be Mandatory • Dependency on Automation • Shift to a Strategic Role • CPA as Personal CFO • Emphasis on Preemptive Planning and Financial Reporting • Complex & Complicated Rules & Regulations – Globalization – Boundary less World • Offshore Remote Working & Virtual Teams across the Globe for Small, Midsize and Regional Accounting Firms • Substantial Decline in Local Staff • Substantial Rise in Per/Partner Profit • Automation is the new norm TECHNOLOGY CLIENT ROLE STAFFING

7. Analysis of Threats – Next 10 Years 04 02 Failure to Attract and Retain Talent Larger Firms will Compete Directly with Smaller Firms 01 03 Technological Threats Acquisitions by Larger Firms

8. Larger Firms will Compete Directly with Smaller Firms • It has already started KPMG Spark • Intuit Entering Bookkeeping • It Wasn’t Just a Test • PwC – Accounting and Bookkeeping Division It’s as if Uber Starts its own Cab Service

9. Acquisitions by Larger Firms • Cloud Accounting – HPC merges in Aprio Cloud • Prager Metis Adds Beck Villata Rea & Associates merge in Tucker & Tucker • PKF O-Connor Davies merges in BFMM

10. Technological Threats • Automation Leveraged by Large Firms • Cyber Security Risks • Inability to take advantage of Technological Changes

11. Failure to Attract & Retain Talent AICPA Studies of Accounting Graduates – Students enrolled in accounting degree programs declining steadily from 2013 • In-demand jobs always have high attrition Decreasing availability of high quality staff in local locations Millennials, Gen Y and Gen Z prefer freedom to work and higher flexibility Small firms that fail to grow will struggle in keeping local talent onboard

12. Transforming Threats into Opportunities – Next 10 Years 04 02 Early Adoption of Technological Advancements Creating a Niche 01 03 Remote Working Staff – The New Norm of Workplaces Effective Succession Planning

13. Creating a Niche • Industry Niche • Execution Niche • Marijuana – New and Emerging • Working Style of Staff 01 • Real Estate – Large and Complicated • Virtual Teams – Supporting Strategies | Fourlane Restaurants & Bars – Managerial & Cost Accounting 03 02 • Type of Work • Service Niche 04 • Real Time or Near Time Accounting • Outsourced CFO • Monthly/Quarterly Bookkeeping • Accounting & Bookkeeping Individual Taxes Write-up, Catch-up & Clean-up Work Corporate Taxes

14. Effective Succession Planning • Midsize Firms • Agreements/Operating Procedures & other Documents • Partner Agreement Executed by all the Existing Partners • Client Transition Plan for retiring partners • Ability of retired owners to block upstream mergers • Mandatory Age for retirement • Involvement of retired owners

15. Effective Succession Planning • Small Firms • Internal Succession Planning – Why it can’t happen overnight? • Sale to Existing Partners • Introduction of New Partners • Orderly Winding Up

16. Early Adoption of Technological Advancements • Go Paperless – Now • Leverage Digital Marketing for New Business Development • Bring your Team to a • Project Management System • Use Cloud for Collaborative Working

17. Remote Working Staff – The New Norm of Workplaces • Pros: High Quality Talent can be hired from any part of the world Delegation of workload Flexibility of working Scalability is possible • Cons: Compliance and Benefits Cost Remains the same as local staff

18. Remote Staff with Entigrity - A Real Opportunity for Early Adopters 75 % Average Saving on Labor Costs • Save 75% on Labor Costs • Experienced & Qualified Staff • Flexible Hiring Model • Easy Scalability • No Draconian Compliances • Direct Control & Management • No Infrastructure Costs • Transparent Hiring Model • Saving HR Bills & Overheads • No Additional Cost on Benefits 96 % Client Retention 500 + Accounting Firms Served

19. 5 Step Model to be Future Ready STEP - 1 STEP - 2 STEP - 3 STEP - 4 STEP - 5 Grow and have Multiple Partners Onboard Embrace Change Boost the Bottom Line Leverage Technology Become the Market Leader in Your Niche

20. Session Overview • Accounting Profession – 10 Year before | Now | 10 Years from Now • Technology • Client • Role & Tasks of Accountants • Staffing • Analysis of Threats – From Now to 2029 • Transforming Threats into Opportunities • 5 Step Model to be Future Ready

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