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California CPA Magazine

Welcome to your backstage pass to exclusive interviews with industry leaders—plus, the latest updates on tax laws, financial regulations, accounting standards, and game-changing technology that's reshaping the financial and California landscape. 

Diversity, equity, inclusion and belonging are pivotal pillars in today’s corporate landscape and for CalCPA, these values are central to our mission and crucial to attracting a diverse range of individuals to a CPA or finance career that will enrich and strengthen the profession.

To better understand who our members are, how they feel their places of work demonstrate belonging practices and what career obstacles they may face, CalCPA conducted 

Stand Up and Be Counted: CalCPA DE&I Baseline Membership Survey

Our results showed that a substantial share of CalCPA members support belonging efforts in their workplaces and respondents expressed positive views of their firm, company or with CalCPA, with respect to belonging, networking and mentoring opportunities:

While the above numbers are trending positive, there is still work to be done. For example, when asked if they experienced any DE&I obstacles in the workplace, 69 percent of the respondents said they have and cited lack of recognition and failure to be promoted among them.

At the same time, 67 percent said leadership supported belonging improvements and pointed to having teams, consultants or task forces in place or having written hiring practices, guidelines and/or policies.

I’m grateful for those who participated in our survey. Your active engagement propels this vital work forward, enabling us to collect the essential information to, among other things:

As the largest state CPA society, CalCPA is helping lead the charge in welcoming all people to accounting and finance and building a community of belonging to ensure a robust and inclusive future for the profession.

Belonging

Diversity, equity, inclusion and belonging are pivotal pillars in today’s corporate landscape and for CalCPA, these values are central to our mission and crucial to attracting a diverse range of individuals to a CPA or finance career that will enrich and strengthen the profession. 

May 2024: Belonging

With nearly 30 years of experience in the profession, CalCPA member Joseph Rosenbaum, CPA was appointed to the CBA by Gov. Gavin Newsom in May 2022. He was elected to serve as CBA president for 2024 and served as secretary/treasurer in 2023. Prior to his tenure as president and secretary/treasurer, Rosenbaum was a member and chair of the CBA Enforcement Advisory Committee from 2012-20.

Professionally, Rosenbaum has been president at Rosenbaum & Co. since 2011, and prior to that served as a partner at Ernst & Young LLP and partner at both PricewaterhouseCoopers LLP and Arthur Andersen & Co.

Along with being a CPA, Rosenbaum is Certified in Financial Forensics by the AICPA and has nearly 30 years of experience in complex litigation and investigation matters, including cases involving allegations of civil and criminal fraud.

We spoke with Rosenbaum about his experiences and what CPA professionals can expect to see from the CBA this year.

Q&A with CBA President Joseph Rosenbaum, CPA

We recently spoke with CalCPA member and CBA President Joseph Rosenbaum, CPA about his experiences in the forensics practice area, what CPA professionals can expect to see from the CBA this year and the importance of giving back to the profession.

Q&A with the CBA

Perception is one of the biggest contributors to the pipeline issue in our profession. It’s seen as “traditional,” “stuck in our old ways” and sometimes even “uncool.” Ouch!

Students are drawn from the stability of the accounting profession to more exciting specialties like data science, engineering and tech, which offer great job opportunities, along with the cutting-edge environment, culture and flexibility.

Firms have had to get creative in recent years to engage and retain a more diverse workforce, many of whom are remote at least part time. This hasn’t been easy, but from this challenge, many creative and forward-thinking ideas have emerged. And if these approaches were more common, we’d be well on our way to solving our perception problem.

Here are some unique ideas being used by CalCPA members to engage their teams and create an environment where young—and future—accountants want to work.

When it comes to retention, having an engaging, supportive culture and connection with peers can’t be replaced by a slight pay bump. Candidates are searching for work/life integration and meaningful ways to contribute and give back. Weaving these values into your culture is a home run.

“At LevitZacks, what truly sets us apart is our unwavering dedication to our team’s well-being, infusing fun into our workplace and keeping everyone engaged,” said Bryan Carpenter. And it shows.

The firm has built a robust calendar of activities designed to create connection, relieve stress and foster friendly competition. Many of the activities, like team lunches, are virtual-friendly and held over Zoom, and they commit to gathering together as a team twice per year in San Diego.

They’re also finding time to give back. 

’LZ©’s’ community service committee finds unique opportunities to give back. We allow our employees additional paid time off for community services activities and volunteer work,” Carpenter said.

Finally, the firm has shown a commitment to its team’s well-being and personal development. “We offer golf lessons and support ongoing employee rounds, providing an opportunity for team members to learn” a new skill they can carry with them for life. Not into golf? “Our firm volleyball team competes with fellow accountants and CPAs,” explained Carpenter, fostering both physical fitness and social interaction. 

Critics of the four-day workweek worry about productivity and the potential impact on meeting deadlines. GSA CPAs has had success with its take on the four-day workweek model where team members have every other Friday off between May and December. On the alternating Friday, the team is responsible for checking in on emails periodically and addressing any critical matters.

This approach hasn’t resulted in a drop in productivity or efficiency. In fact, it’s improved. According to Dalton Sweaney, this structure allows for producing work with “high quality and a freshness that allows me to think critically and service my clients at my best.

A six-month study conducted by Autonomy in the UK followed 3,000 workers in 61 companies as they trial the four-day workweek. From an employee perspective, participants noted decreased stress and levels of burnout, with improved productivity. On the company side, absenteeism was down, the number of resignations reduced by half and despite fewer hours, productivity was up 22 percent. And 94 percent of the companies that participated opted to continue utilizing this model. More information can be found in 

Another of the firm’s strategic decisions supports the four-day workweek model. “We’ve found working with fewer clients really aligns with our values as a firm,” Sweaney said, enabling them to focus on more complex work for a smaller pool of clients. This approach has allowed the team to “operate within our skill sets and focus on providing tremendous value to the clients.”

In a bold move to enhance employee engagement and performance, AuditClub, the Audit Service Center for CPA Firms and companies, recently reimagined its incentive compensation program. Departing from the traditional year-end bonus model within most firms and companies, AuditClub embraces an approach that includes weekly and monthly awards linked to specific goals and projects that fuel the company’s growth strategy and focus on enhancing its member and employee experience.

Employees can choose monthly projects within three verticals that align with their skills and interests, effectively becoming architects of their professional journey within the company. As they commit to these projects, the bar is set high, promoting a culture of excellence and personal accountability. The game-changer lies in the immediate recognition and cash payout via personal debit cards when employees successfully complete their monthly projects. This real-time acknowledgment bolsters motivation and fosters a sense of accomplishment, creating a feedback loop of success.

At the end of the fiscal year, employees can earn a multiplier on their total awards, hinging on the company’s collective success. This dual-tiered approach rewards individual accomplishments and aligns every team member’s efforts with the broader strategic objectives of the company.

Chris Vanover, AuditClub president and senior chief auditor, reflected, “By embracing weekly and monthly awards, immediate cash rewards and performance-based multipliers, AuditClub has elevated its corporate culture and also set a precedent for organizations seeking to elevate their compensation programs in the ever-evolving modern workplace.”

CPA firms are embracing innovative approaches to foster engagement. As an example, BPM has entered the Metaverse to explore how it can enhance social connections, encourage collaboration and create immersive onboarding experiences for new hires.

An unexpected revelation from these experiments has been the Metaverse’s ability to authentically replicate the sensation of being in the same room with colleagues situated thousands of miles apart. Heather Esposito, director of learning and development with BPM, stated, “While we are still piloting a number of different use cases, we are excited to see how this emerging technology may support engagement and deepen relationships between colleagues, especially as our Virtual Region continues to grow.”

Outside-the-box approaches to building culture and creating “stickiness” in your organization isn’t reserved for hip start-ups or huge firms. These changes are positively impacting firms in our backyard. The perception of our profession will shift one firm at a time. What role will your firm play?

Reality vs. Perception

Outside-the-box approaches to building culture and creating “stickiness” in your organization isn’t reserved for hip start-ups or huge firms. Here are some ideas to engage your teams and create an environment where young—and future—accountants want to work.

In recent years, the accounting profession has experienced a profound transformation that goes well beyond AI and the allure of private equity and has paved the way for a new era in accounting—one characterized by a connection to spiritual development and turning inward to explore what makes up a more fulfilling, meaningful life.

In this article, we’ll explore the two key phases of the spiritual transformative journey—the “dark night of the soul” and subsequent “start of a new life”—and offer insights and guidance for CPA firms that desire to differentiate their culture by becoming the best place to grow—personally and professionally.

The “dark night of the soul” is a metaphorical journey through a challenging and transformative phase where one begins to question everything. It’s common to feel confused, overwhelmed and lost during this period, which demands deep introspection, a re-evaluation of meaning, and a contemplation of one’s habitual ways of thinking, acting and feeling.

As holistic psychologist Dr. Nicole LaPera puts it, the dark night of the soul occurs when “we stop living out of our autopilot programming. …(When) we start to realize we’ve been conditioned to perform, achieve and to seek external things to make us happy or feel worthy of being loved.”

This is a pivotal moment in the evolution of self, prompting a deeper exploration of purpose and significance in one’s professional and personal journey.

Insights From a Professional Coach on the Awakening of Accountants

At Conscious Public Accountants, we see the awakening taking place within the accounting community. Through coaching engagements that span from staff to managing partners and CFOs we witness accountants navigating the challenges of their personal “dark night.”

Prior to COVID, our coaching clients sought support for external goals like pay raises, job promotions and growing a book of business. COVID changed that. A 2021 New York Times article highlighted individuals leaving prestigious jobs to pursue their passions. This signaled a realization that the status quo was no longer sustainable and noted a theme: “The pandemic changed my priorities, and I realized I didn’t have to live like this.”

Real Talk: No One Wants to be Working Like We Have Been

Mandatory Saturdays, 55+ billable hour workweeks and responding to client emails within 24 hours are nothing more than programmed beliefs about how work should be done. The pandemic exposed the flaws in our beliefs about what a “good” work ethic looks and sounds like. It revealed our profession needs to work smarter, not harder.

Spiritual awakenings are challenging and imperative; they force us to recognize the ineffectiveness of our behaviors. Consciousness precedes choice, and choice precedes change. When accountants awaken to what is no longer working, the opportunity to become greater emerges.

Since COVID, the focus of our coaching engagements has turned inward as clients seek a more

 meaningful and fulfilling life. Coaching sessions have become introspective where clients explore bigger questions, such as:

It takes deep courage and internal strength to navigate this transformative journey. These new-world leaders face the challenge of forging new paths, aspire to deliver services that have never existed and yearn to manage their practices very differently. But their novel ideas are often met with confusion or resistance. They want to live a more balanced lifestyle, but don’t know how. The necessary behavioral changes are hard to put into practice when one has never witnessed them.

Heightened Awareness and How CPA Firms are Holding Space for This Transformation

As accountants embark on this new era, they bring with them a heightened awareness that transcends the traditional confines of their profession and positions them to contribute to a more ethical, responsible and interconnected world. CPA firms can play a crucial role in this transformation by creating environments that foster personal development, encourage purpose-driven approaches and cultivate a culture where individuals feel safe expressing their deepest truths.

At Conscious Public Accountants, we believe personal development significantly enhances business results. And to effectively lead another, one must start with effective leadership of their own self.

In today’s distributed work environment, personal connections take a back seat in virtual meetings, which tend to focus on what people are doing and not on getting to know one another on a personal level. Do you remember what it was like to sit next to someone and hear or observe what was really going on in their life? Colleagues who connect with one another on a deeper level of life are more committed to their roles, which leads to higher productivity and better business outcomes.

Creating the Container for Personal Development

CPA firms that create containers for personal development empower their employees to explore what they really want to do with their life—and create risk-free spaces for employees to share these dreams. And we’ve seen that, while initially perceived as risky, this approach benefits everyone. Your future leaders awaken to their highest level of contribution. They see possibilities for creating something the firm needs but doesn’t yet have or even see. These shared conversations about what is possible evolve the consciousness of the self and teams.

As the accounting profession undergoes this transformation, each phase—from the dark night of the soul to the inception of a new life—unveils deeper understanding of purpose and interconnectedness. This journey enhances the professional lives of accountants and contributes to a positive evolution of the industry.

By recognizing and embracing these transformative elements, the accounting profession is poised for a future that surpasses conventional norms, unlocks untapped potential and creates more meaningful and fulfilling working environments for all involved.

The Dawn of a New Era

The accounting profession has experienced a profound transformation that goes well beyond AI and the allure of private equity to one characterized by connections and what makes up a fulfilling, meaningful life.

In today’s rapidly evolving business landscape, transparency has taken center stage. This extends beyond salary information or outlining business initiatives; it is a culture where employees gain insights and feedback is exchanged freely. This openness is crucial in celebrating successes and in identifying and addressing areas in need of improvement.

What does transparency entail? Fundamentally, it’s sharing internal operations and decision-making processes with external parties. This openness shows that your business operates without hidden agendas and fosters trust. Besides benefiting clients, transparency helps businesses sustain their credibility. In an era marked by shifting regulations and a competitive market, companies are increasingly viewing transparency as a strategic advantage rather than an obstacle.

And for a profession that is rapidly changing in scope and processes, as well as facing challenges with recruitment and retention, the importance of this mindset can’t be overstated.

In that spirit our January Council meeting had an insightful conversation with various young and emerging professionals about their work experiences that shed light on areas where the profession is getting it right, where tweaks are in order and clear up misconceptions about the up-and-coming generation.

Doesn’t it seem like each generation thinks the one prior is stuck in its ways and the one behind it “has it easy”? This may be an oversimplification, but there’s no disputing that generations can get their wires crossed when it comes to communication—and perhaps get caught up in stereotypes and assumptions.

“I think the biggest disconnect is this idea that the newer generations don’t have a good work ethic,” said one of our YEP panelists. “I’d rather work really hard for 40 hours than, you know, spend 12-hour days that aren’t as, you know, as productive … it’s more about quality than quantity.”

Another panelist said, “I love the work. I just don’t love so much of it all at once. … I do not see myself working 60, 70, 80 hours a week long term.”

“It feels like firms aren’t investing enough in their employees out of fear that they’re going to leave,” said one panelist. “My priority would be supporting employees and investing in them.”

Another panelist stressed the development of “a strong culture. I love coming into the office because I get to hang out with my coworkers, catch up with the partners I work with and it’s exciting, it’s fun, even though busy seasons are hard sometimes.”

Of course, the panel didn’t solve all the challenges facing the profession. But the honest feedback will help on this journey. It’s up to us—as a profession, as firms and as individuals—to be curious, lean in for feedback, continue the conversations and use the information to implement necessary changes.

The Power of Openness

In today’s rapidly evolving business landscape, transparency has taken center stage. This extends beyond salary information or outlining business initiatives; it is a culture where employees gain insights and feedback is exchanged freely.

California CPA Magazine

What's happening

Belonging

Q&A with CBA President Joseph Rosenbaum, CPA

Reality vs. Perception

The Dawn of a New Era