CalCPA Signs Up 30,000th Member

CalCPA Surpasses Long-Awaited Milestone

by Damien B.M. English

California CPA magazine: June 2007

CPA Yuru Jiang came to California from the most populated country in the world—China—and when she joined CalCPA as its 30,000th member, it marked the ascension of CalCPA to a leadership position as the most populated state CPA society in the nation.

  “Reaching the 30,000 milestone is huge—it really takes this organization to the next level,” says incoming CalCPA Chair Teresa Mason, CPA. “CalCPA’s membership is about 10 percent of the AICPA’s. It truly puts California on the forefront, nationally, as the largest state society and gives us an opportunity to drive change.”

Jiang didn’t know she was poised to help CalCPA reach a milestone when she joined the organization. Rather, she had turned to CalCPA for professional help, like so many members before her. Specifically, Jiang had a new client who needed a personal financial statement, and, lacking experience in that area, she sought the advice of a co-worker.

“One of the managers was taking a CPE class on that topic so I decided to do the same,” she says. Jiang found she could take the CPE for free by joining CalCPA. So, she joined, and became CalCPA’s 30,000th member. No confetti or balloons dropped down on her from above, but the occasion was momentous as she helped CalCPA achieve a goal that was a culmination of tireless effort from leaders and staff, as well as a testament to the strength of the profession in California.

“Knowing that we have attained the numbers to be the largest state society drives us to maintain this position and to be sure that our members recognize the energy and clout that comes from their association with CalCPA,” says CalCPA CEO Loretta Doon, CPA.

As a new member, Jiang might not recognize the power of a 31,000-member association just yet, but she says she looks forward to reaping the rewards of membership, including receiving the professional information sent out almost daily and establishing a network of resources—and friends.

Jiang came to California from China with a degree in Russian literature, and quickly learned this wasn’t going to do her any good stateside unless she became a translator.

“I wanted to study something more useful,” she says. “Something I could use no matter where I went.” She chose accounting.

Jiang started at Mount San Antonio College, a junior college in eastern Los Angeles County, before transferring to Cal State Fullerton. Upon graduation in 2001, she joined Bolar Hirsch & Jennings LLP in Irvine, where she has worked ever since. The firm has sponsored her to go back to school and obtain her master’s degree, and she recently has been promoted to manager.

“I really like my job,” she says. “It’s not easy. You work long hours, but I’m that kind of person. I don’t like doing the same thing every day, and here we see different types of jobs and clients. There’s always something new going on. It’s challenging, it’s fun and I like to learn.”

This is easy to believe coming from a woman who speaks Russian, Chinese, English—and CPA.

How’d We Do It?

CalCPA Chair Mark Parkinson, CPA, says the goal to hit 30,000 members was set in May 2006, near the start of his term.

“We began at about 28,300 or so, so it was an ambitious goal,” says Parkinson, “but it was reachable (and reached), because we combined it with providing more value to our members and continuing to work on our product and our customers needs.”

Parkinson says the strategy to hit the mark was threefold:

•    Find out what members want through surveys, focus groups, firm visits and lots of discussions between members and staff.

•    Give members what they want, which, depending on the member, includes legislative updates; networking opportunities; high-quality, authoritative continuing education; timely, relevant news and information; educator and student outreach; and much more.

•    Let them know what CalCPA has to offer via constant—and relevant—contact.

Perry Forschino, CPA, outgoing chair of CalCPA’s Membership Committee, said another driver of the growth was CalCPA’s offer of free membership to first-time CPA candidates.

“The number of candidate members has tripled in the past two years, which in turn has tripled the percentage of individuals who are already CalCPA members when they get licensed,” he says. “Sometimes, young professionals get so immersed in the day-to-day that if no one reaches out to them, they just don’t join.”

So, with a little help from more than 28,000 members, CalCPA rolled up its sleeves and got to work growing the family. After record growth early in the membership year, the question no longer was “will” we reach 30,000, but “when.” The milestone was achieved when Jiang signed up in January.

“When we emerged from our membership drive, not only did we have the satisfaction of surpassing our goal,” says Parkinson, “but it also became clear we had pulled far ahead of other large states in terms of membership to become the biggest in the nation. As the largest state in the union, it is only fitting we should have the largest CPA society—and I can assure you, we will keep working to see that it stays that way.”

Of the accomplishment, Doon says “it doesn’t change anything ... and yet it changes everything. We shall continue our efforts to grow and to add value. We now can do it with more energy and clout.”

It’s Still About Service

When founded in 1909, CalCPA had 36 members, and dues were $20 per year. Over the years, dues have increased a little, but CalCPA’s focus remains intact: to increase the value and promote the integrity of the CPA profession, contribute to members’ success and strengthen client, employer, public and government trust in CalCPA member advice, work products and opinions.

There are many ways CalCPA strives to achieve its mission, all of which are ultimately member driven. “We have energized leaders within the profession,” says Doon. “CPA professionals are experiencing excellence and growth in their businesses and want to participate in and give back to their profession.”

To understand what members want, CalCPA uses various formal and informal sources to collect and analyze information.

“For example, our research identified a need for larger firms to receive information on a more timely basis regarding what was happening in Sacramento on both the legislative and regulatory front,” explains Doon. “As a result, CalCPA, under the leadership of its chair, Marc Parkinson, started to organize

periodic conference calls with managing partners of the largest non-Big Four firms in California to discuss legislative issues and provide updates on California Board of Accountancy activities.”

CalCPA takes a similar approach as it reviews, enhances and develops programs and services for all its member communities—from young and emerging professionals to educators to CPAs in business and industry to women. The approach, a large departure from previous practices, has paid off. Take the example of the young and emerging professionals.

“We used to try and anticipate what young and emerging

professionals wanted from CalCPA without ever asking them directly,” says Forschino. “Obviously, we were not effective.

So, we started forming Young and Emerging Professional

committees in every chapter that were led by young and emerging professionals, and interest from this member community started to grow.”

This grass-roots movement has led to a statewide young and emerging professionals initiative that was showcased in May with the 2007 Young and Emerging Professionals Conference.  More than 600 attended the conference, held in San Francisco and Los Angeles.

“This conference was geared toward young professionals and the ‘soft’ skills required to succeed,” says Mason. “While many large firms are able to offer this type of training internally, it’s a great service to the smaller practitioner to deliver this program in an affordable and convenient location with top-notch speakers. This is part of how CalCPA is actively looking for quality programs and deliverables for the smaller practitioner.”

Financial Leadership Forum

As CalCPA focuses on member communities of interest, business and industry quickly moves to the fore, and research

and planning began last summer on how to better serve these key members.

“There are a number of professional organizations competing with CalCPA for the attention of the business and industry CPA, and I applaud the CalCPA leadership for investing resources in learning how to better serve the business and industry CPA,” says Scott Hofferber, CPA, and incoming CalCPA vice chair.

“The challenge for CalCPA is to generate support from employers and supervisors of business and industry CPAs.

It seems the employer hires with the CPA designation as a preference, but then does little to maintain and enrich that CPA on an ongoing basis, usually citing the cost of doing so

as a deterrent.

“I see CalCPA as the guardian of the prestige and image of the license and the licensee in California,” says Hofferber, controller for Farmdale Creamery, Inc. in San Bernardino.

“Meeting needs and adding value to all our members is what we are about,” says Doon. “In January 2008, we will launch the Financial Leadership Forum and deliver on that promise to California CPAs in business and industry.”

The Leaders Among Us

“CalCPA is embracing diversity in all its shapes and forms,” says Mason. “Meaning diversity of gender, ethnicity, area of practice (public/private/government/education), and those at various stages of their careers. At CalCPA, there is a place for all CPAs to develop their leadership skills, work collaboratively for the good of the profession and meet some wonderful people.”

The partnership between members and CalCPA staff is integral to identifying and training leaders within the organization. A means to that end is CalCPA’s Leadership Institute, which was launched in 2005, and will welcome its third class of participants this fall.

The five-day program teaches skills to make CPAs better leaders and managers. The goal is to grow participants as volunteer and business leaders as they focus on improving leadership behavior, as well as critical thinking and management skills.

John Angelo, CalCPA division director of strategic relations, says that Leadership Institute emerged during Chris Yahng’s term as CalCPA chair, when he discovered that many CalCPA leaders were graduates of a previous leadership program. In fact, says Angelo, “Most of those members who attended turned out to be key leaders for us later on—several became CalCPA chairs.

“So, under Chris’ leadership, we researched, interviewed and selected an instructor (Bill Reeb, CPA) and he developed a curriculum from our specs. We limit the number to 20 participants and we have reserved two spots for staff (one from CalCPA and one from the California CPA Education Foundation) because we believe that the governance of our organization is truly a partnership between member leaders and staff.”

The program’s payoff is apparent: Two classes

of 20 have graduated and all but one graduate has

assumed a leadership position at the chapter or

state level.

Hofferber, a 2005–06 graduate of the Leadership Institute, says his experience already has paid dividends for his employer. “I was able to bring back succession planning tools and concepts to the company, which is family owned,” he says.

And the Leadership Institute also has helped him understand what it means to be a better leader.

“This course builds your sensitivity to try and lead people from where they are professionally toward where you want or need them to be,” he says. “It gives you the tools to understand team-building techniques, and illustrates why cracking the whip on everybody isn’t the most appropriate or effective approach.”

Much of this self-discovery came about through the supportive class environment, which encourages a close-knit atmosphere that lead to opportunities for lifelong connections.

“While a lot of networking is at a professional level, this took it to a deeper level, more like building a small society,“ Hofferber says. “We’re all a little more aware of each other personally and there’s a greater level of care and respect.”

New Members, New Leaders, More Women

In the process of building new leaders, and growing the membership, CalCPA is beginning to reflect the profession more closely. A notable shift in the profession over the past few decades is moving from 60 percent male licensees and 40 percent female to 60 percent female licensees and 40 percent male.

For the 2007–08 membership year, 10 of 14 CalCPA chapter presidents are women, along with 2007–08 CalCPA Chair Teresa Mason and Education Foundation President Patricia Cochran.

“I’m delighted to see more diversity on the board and council, and look forward to more women in the ‘C’ suites of companies,” says Mason.

“I foresee more women will lead the profession and that their numbers will continue to increase,” says Violeta Cristobal, CPA and incoming president of the Los Angeles Chapter. “More women are starting their own CPA firm and it’s obvious that even in small CPA firms, there are more female professionals than male.”

Jiang represents this fastest-growing demographic in the profession, and to celebrate the accomplishments of women CPAs, CalCPA will host a one-day conference for women Oct. 19 in Los Angeles. Topics to be covered include cultural and generational issues; life’s financial transitions; social change; and mentor/mentee relationships.

What Next?

The focus now is on designing and delivering member services, says Mason, who also wants to continue to address national issues—such as substantial equivalency and mobility—as she helps CalCPA move into the future.

“Today, very few of us spend our career with one firm, in one area of practice or in one state,” explains Mason. “My goal is to make sure we don’t disenfranchise CPAs by forcing them to make choices they don’t need to make. For example, if a parent in another state gets sick and a CPA moves to care for them, they should not have to give up their professional career because they aren’t licensed in their new state of residence.

“The profession needs good, qualified, experienced people—let’s find a way to protect the consumer and facilitate a more global environment. Let’s make the rules clear and enforceable.”

Looking ahead, Doon says a major focus of attention over the next several years will be business and industry, a membership category she acknowledges has been underserved.

“It’s our goal to turn this around,” she says. “The profession is diverse. CalCPA needs balance and the appropriate programs and services to benefit all its respective constituencies. Small firm practitioners have always been a driving and positive force for the organization. There is no doubt that we shall continue to add value these members. However, the conditions and practices for small firm practitioners also are changing and we will be sure that they are involved in shaping our programs to serve their needs.”

And, of course, CalCPA will continue on its path of growth and seeking to serve new members like Jiang because, as Doon says, like any other business or organization, “to stop growing, to stagnate, is to die.”

“We have only just started our ascent,” she continues. “What’s next? The best is yet to come. We want every CPA in California, who is dedicated to the profession’s core values, to be part of our organization, to encourage the highest quality service for CPAs

in California and to provide the best conditions for our members to thrive.

“That’s what’s next.”

Sidebar:  Government Relations

In 2007, as always, CalCPA will represent your interests in Sacramento. Following are some of the issues on our radar:
• Peer Review/AB 1185: CalCPA is sponsoring AB 1185 (Hayashi, Ma), which would change the date that the California Board of Accountancy is required to report to the Legislature on peer review. The current date is September 2011; the proposed report date would be September 2008.
• Limited Liability Partnerships/SB 414: SB 414 (Corbett) would increase the minimum amount of insurance required for an accountancy or legal LLP from $500,000 to $1 million. CAMICO has indicated that most CPA firms formed as LLPs have a minimum of $1 million in insurance.
• Licensing Examination Entry Requirements/SB 654: SB 654 (Denham) would change the accountancy act to allow individuals who graduated from non-accredited institutions to sit for the Uniform CPA Exam as long as the school receives accreditation within five years of the individual’s graduation. Current law requires the individual to complete another bachelor’s degree to sit for the exam.
• Financial Literacy/AB 150 (Lieu) would create a council charged with the responsibility of increasing the financial literacy
programs available in public schools. CalCPA CEO Loretta Doon participated in an informational hearing held Feb. 20 by the Assembly Banking and Finance Committee to express CalCPA’s support for efforts to increase the financial literacy of Californians and to detail CalCPA’s accomplishments in this area over the last four years.
• Sunset Review/SB 963: SB 963 (Ridley-Thomas) would revise the sunset review process for regulatory boards. Currently, if the Legislature determines that a board is no longer necessary to oversee a licensing program, the licensing power and budget is automatically transferred to the Department of Consumer Affairs. SB 963 is an expression of interest in changing that automatic assumption of power by the Department of Consumer Affairs.
CalCPA also will continue to communicate with the CBA about:
• Mobility: CalCPA is working nationally and in California to improve
the ability of California CPAs to provide service across state lines.
• Revising the CBA’s regulation on audit documentation to parallel, as much as possible, national standards on audit documentation;
• Any CBA discussions on the issue of peer review;
• Changing qualifications for CPA licensure.

Damien English is California CPA magaizine's managing editor.