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Some of the most meaningful things happening at CalCPA right now aren’t taking place in boardrooms or on conference stages. They’re happening at a bowling night in the Bay Area, an evening gathering in Bakersfield and a monthly tax meetup that started with a handful of local practitioners and now draws members from across California.

These may seem like small moments, but they reflect something much bigger: a rapidly changing profession and a growing community of people who recognize they don’t have to navigate those changes alone.

That’s the thinking behind this year’s theme, 

 From changes in firm ownership and new approaches to education and professional development to the growing influence of technology and artificial intelligence, the accounting profession is being reshaped in ways that will have a lasting impact. And CalCPA is responding by looking ahead, developing new resources, strengthening its advocacy efforts and creating more opportunities for members to connect, contribute and lead.

Building Connections That Make a Difference

A strong professional community doesn’t happen simply because people belong to the same organization. It happens when they have opportunities to share experiences, ask questions, exchange ideas and build relationships with others who understand their challenges.

, and the growing number of member-led events taking place throughout the state.

This fall, the San Jose ABC Night drew its largest turnout since 2020, while 115 members and guests came together in Sacramento. Bakersfield offered attendees a firsthand look at a growing and energetic city, and accounting students volunteered at CalCPA golf tournaments in Ontario, Fresno and Camarillo.

Members are also taking the initiative to create their own opportunities, with 55 events on CalCPA Connect generating nearly 900 registrations. Some, including a Topgolf mixer in El Segundo, have become signature gatherings.

Behind that activity is an expanding network of volunteers. CalCPA now has 188 member volunteers, up from 133 chapter leaders last year. Nearly 100 are involved in 15 event groups, with new groups forming in Los Angeles and the Inland Empire.

Beyond the numbers, though, are the individual experiences that tell the rest of the story.

Celia Lau’s tax meetups, for example, began as a small Bay Area gathering and have since grown into a statewide group that meets monthly. She also organized an invite-only bowling night that brought together members from across California. One attendee drove from Sonoma, another traveled from Southern California, and a recent Pomona graduate stopped by while apartment hunting ahead of a January move.

That evening led to something more. Celia has since been helping the Sonoma attendee prepare for interviews and navigate the process of asking for more time on a job offer. As she observed, “The smaller, more intimate setting was conducive to better conversations.”

Other connections are creating opportunities, too. A small-firm tax practitioner working remotely in Roseville joined a virtual conversation to meet local professionals and has since started hosting her own meetup. Professor Debbie Johnson, CalCPA's Academic of the Year, brought her entire class to a webinar about the election and the importance of policy engagement. And a CPA candidate who attended the Member Summit found answers to her licensure questions at a Licensure Lounge meetup, including learning that California’s new licensure rules made her eligible to become licensed.

These examples illustrate what can happen when members see a need, raise their hands and take action. CalCPA can provide the platform, but it’s members who are bringing the community to life.

Looking Ahead: The Profession Is Changing, and So Are We

That same forward-looking approach is shaping CalCPA's work at the organizational level.

CalCPA Council came together on Nov. 4 to hear updates from the Board and staff, discuss the organization’s direction and address important governance matters. The conversations reflected the opportunities and challenges facing the profession, as well as the work underway to help members navigate what’s ahead.

What is CalCPA’s single most defensible reason for existing in 2027—something you couldn’t get anywhere else?

What’s true about the profession right now that nobody has said out loud yet? 

If CalCPA were founded today, with today’s technology and today’s profession, what would we build first? 

The conversations were candid, and we’d love to hear your thoughts. 

You can share your thoughts by emailing us

Bringing California’s Voice to the National Conversation

Since the issues affecting California CPAs don’t stop at the state’s borders, CalCPA continues to work closely with the AICPA, other state CPA societies and regulatory organizations on issues that will influence the profession nationwide.

In October, California’s delegation attended the AICPA’s fall Council meeting, joining regulators, firm leaders and representatives from state societies across the country. The discussions centered on many of the same issues members are facing in their own firms and organizations, including AI, updates to the Uniform Accountancy Act, new pathways to licensure and advocacy at both the federal and state levels.

California has an important perspective to bring to these discussions, particularly as the profession considers changes involving continuing education, private equity and alternative practice structures, use of the CPA title and the ability to practice across state lines.

There’s a Place for You in What Comes Next

The accounting profession has always evolved, but the pace and scale of change we’re experiencing today make it especially important to stay connected and involved. CalCPA's ability to respond effectively depends on the collective experience of its members, fresh perspectives of the next generation and the willingness of people across the profession to step forward.

Our members bring a depth of knowledge and experience. The next generation brings new energy, ideas and perspectives. When we make room for both, we strengthen not only CalCPA but the entire profession.

The work ahead is significant, and there are important conversations still to be had. But we’re not waiting for the future to unfold before deciding how to respond. We’re building relationships, developing new resources, advocating for the profession and creating opportunities for members to help lead the way.

Charting What’s Next. Together.

The profession is changing fast, and CalCPA isn’t sitting on the sidelines. From expanding member connections to developing new resources, here’s how we’re moving forward—and how you can be part of the movement.

One of the greatest challenges and opportunities with proactive tax planning is timing. At its best, effective tax planning pairs eligible deductions against taxable income. Enter the charitable remainder trust. 

Charitable remainder trusts are incredibly powerful planning tools. When you execute a large transaction inside of a CRT, like the sale of a concentrated stock position or an M&A transaction, you can take a one-time transaction and spread it out over a fixed term or even the lifetime of the beneficiary. Unlike many trusts, CRTs primarily impact income tax planning rather than estate planning. 

A charitable remainder trust is a split-interest trust in which the income beneficiary is a person and the remainder beneficiary is a charitable organization. They are statutory trusts governed by Sec. 664. They can be either a charitable remainder annuity trust (CRAT) with a fixed annual payment or a charitable remainder unitrust (CRUT) with a percentage payout based on the trust’s value. The latter is more common because it allows the income beneficiary to participate in the growth of the trust assets. 

In a CRUT, the trust must distribute at least 5 percent annually, while preserving 10 percent of the present value of the assets for charity. The two variables that allow planners to thread the needle between these goals are the actuarial tables governing these types of trusts and the 7520 rate, which is equivalent to 120 percent of the midterm AFR. Therefore, the ages of the potential beneficiaries and the current interest rate environment play a large role in determining the feasibility of the trust in any given scenario.

Once inside a trust, the assets grow tax-free. The annual distribution (determined as either a fixed annuity or as a unitrust percentage) pulls taxable income out to the beneficiary through a Form K-1. In this way, CRTs operate similarly to a supercharged traditional IRA, where income accumulates tax-free inside the account, but becomes taxable when it is distributed. One unique feature of CRTs is that distributions are taxed under a tiered system that treats the highest-taxed income as coming out first. Payments are drawn first from ordinary income, then capital gains, then tax-exempt income, and finally from the trust’s corpus.

It’s this predictability that enhances the tax planning benefits of CRTs. It is easier to plan against predictable distribution amounts; long-term tax loss harvesting strategies can be more effective over a multi-year period than trying to time them all against a single transaction; and there is potential for tax rate arbitrage if your tax rate in future years falls in more modest tax brackets, or if you change residency from a high tax state to a low tax state.

Pitfalls to avoid when planning with CRTs include Unrelated Business Income Tax (UBIT) and mortality risk. UBIT is generally relevant for nonprofit organizations, but it also applies to CRTs, and the consequences are severe. A CRT that earns unrelated business taxable income faces a punitive 100 percent federal excise tax on that income, plus any applicable state tax. Therefore, you want to be careful to avoid investments that generate UBIT, or debt encumbrance inside the trust, because that will also be classified as UBIT.

For mortality risk, the grantor must understand that once they pass, the charity receives the balance of the trust. Taxpayers should avoid putting more assets into a CRUT than their heirs will need to sustain themselves. Some of this risk can be offset with life insurance.

Taxpayers who are planning around large transactions (whether it be an M&A transaction or a concentrated single stock position) should consider whether a CRT can be a useful tool to help manage the tax consequences of the sale. They can provide much needed time horizon and predictability to help taxpayers manage and minimize the tax liability. 

Why Advisers and Clients Are Embracing CRUTs

A charitable remainder unitrust may offer a way to spread taxable income over time while supporting charitable giving. Learn how they work and what advisers should consider.

California’s political landscape is about to look considerably different. The Nov. 3 election delivered a sweeping victory for Democrats at both the state and national levels and set the stage for a new administration under Governor-elect Xavier Becerra. 

But beyond the election results, the bigger questions may be what comes next—and how the changes will affect California’s economy, business environment, tax policy and professional landscape.

During CalCPA’s special election-focused Capital Beat, Jason Fox, CalCPA’s vice president of advocacy and public affairs, and Missy Johnson, director of government affairs at Nielsen Merksamer, examined the election results and discussed the issues likely to dominate the legislative agenda in 2027. 

For CPAs and finance professionals, several developments deserve close attention.

A New Political Dynamic in Washington and Sacramento

Democrats made significant gains nationwide, taking control of both the House and Senate. And the results reinforced Democratic dominance in the California Legislature, where the party is positioned to expand its already substantial supermajorities. 

Several traditionally Republican districts appear to have shifted, potentially costing Republicans as many as seven Assembly seats and three Senate seats.

While a stronger Democratic majority could make it easier to advance legislation, it also raises questions about the role of moderate Democrats. Historically, moderate lawmakers have sometimes partnered with Republicans to negotiate amendments and influence legislation. With fewer Republicans in the room, those relationships and negotiating dynamics could change.

As Johnson observed, “One-party rule is not good.” For businesses and professional organizations, maintaining a meaningful balance of perspectives can be important to developing practical, workable policy.

California’s next governor, Xavier Becerra, brings a different background and governing style than Newsom. A former state assemblymember, congressman, California attorney general and U.S. secretary of Health and Human Services, Becerra has spent much of his career in public service.

Johnson described the governorship as his long-standing ambition and suggested his approach could bring a different tone to Sacramento.

She characterized Becerra as more deliberate and detail-oriented, with an emphasis on collaboration and communication. He has already begun meeting with legislative caucuses and outlining his intention to build more productive working relationships.

However, his specific policy priorities remain largely unknown. His positions on the budget, taxes, health care, business regulation and technology will become clearer as he prepares to take office.

For California’s business community, the transition offers both uncertainty and opportunity. A more collaborative administration could create opportunities for engagement, but policy direction will depend on how Becerra balances competing interests and the state’s growing financial obligations.

Tax Policy and the State Budget: More Questions Ahead

One of the more closely watched ballot measures was Proposition 40, the proposed wealth tax. Johnson said the measure’s defeat was not particularly surprising, given that polling showed it losing support as the campaign progressed.

Propositions 41 and 42, which were designed to counter aspects of the wealth tax proposal, also produced mixed results. While the broader effort to prevent a wealth tax appears to have succeeded, the discussion surrounding how California taxes wealth and income is unlikely to disappear.

And that conversation could become especially relevant as the state confronts a challenging budget outlook.

Although current tax revenues are coming in somewhat above projections, the longer-term picture is less encouraging. Federal funding reductions included in H.R. 1 are expected to begin having a greater effect on states in 2027. California also faces an ongoing structural budget deficit.

Johnson expects state leaders to delay difficult decisions as long as revenues remain relatively stable. When those pressures become harder to ignore, however, tax increases could become an early consideration before lawmakers turn to spending reductions.

Several proposals could resurface, including a potential “fair share tax” on employers whose compensation and benefits arrangements do not provide employees with health care coverage. A Department of Finance report examining the concept is due March 1. Other proposals involving Water’s Edge tax treatment and taxation of software sales could also return to the legislative discussion.

For CPAs advising businesses and individuals, these developments warrant attention. Changes to California’s tax structure, employer obligations and revenue policies could have meaningful implications for tax planning, compliance, and business decisions.

AI Regulation: Technology and the State’s Financial Interests

Artificial intelligence will be another major issue facing the incoming administration and Legislature.

California lawmakers have already begun examining AI-related risks, including automated decision-making systems, accountability and safeguards surrounding increasingly sophisticated technology. Additional legislation is expected, with technology companies likely to play an active role in shaping the debate.

But there is an important economic consideration. California’s technology sector contributes significantly to state revenues, particularly through major company valuations and public offerings.

As Johnson pointed out, the state’s current financial position is due in part to the success of technology companies. That creates a balancing act: lawmakers want to address legitimate concerns about AI while protecting an industry that contributes substantially to the state’s economy.

For accounting professionals, the outcome could influence how businesses adopt AI, manage risk, establish internal controls and address questions of accountability and assurance.

The Accounting Profession Faces Its Own Regulatory Changes

Beyond the broader political landscape, Fox highlighted several developments that could directly affect CPAs and accounting firms.

Nationally, regulators and professional organizations are examining ways to modernize the profession’s regulatory framework. Topics include continuing professional education requirements, the use of CPA titles, private equity investment in accounting firms and alternative practice structures.

The goal is to ensure that regulations keep pace with changes in how accounting firms operate while continuing to protect the public.

Fox noted that many of these discussions are moving beyond preliminary conversations, with more concrete proposals expected, some of which could require legislative or regulatory action in California.

CalCPA will remain actively involved with the California Board of Accountancy, AICPA, NASBA and other state organizations as these issues develop.

Another important development is the implementation of AB 1175 and California’s new licensing model, expected to take effect in January 2027, pending final regulatory approval. CalCPA is providing resources and monthly Licensure Lounges to help students, candidates, academics, and firms understand the changes.

Staying Engaged Will Matter More Than Ever

With a new governor, a significantly reshaped Legislature and major policy questions ahead, 2027 promises to be an active year in Sacramento.

For CPAs and finance professionals, staying informed is important, but participating in the conversation may be just as valuable.

As Johnson emphasized, legislators need to hear directly from the professionals who understand the practical implications of their decisions.

 will provide an opportunity for members to meet with legislators, establish relationships with newly elected officials and share their perspectives on issues affecting the profession.

 by registering and accessing the event in your Activities. And be a part of the 

Beyond the Ballot: What the Election Means for CPAs, the Business Community

A sweeping Democratic victory, a new governor and a reshaped Legislature are setting the stage for a different California. Here’s what CPAs and finance professionals should watch as the state heads into 2027.

I own a tax firm, and I build custom tax and workflow tools for us. I also teach two classes a term at Cal Poly, which is how I came to run an experiment with four students last spring. 

, which ended with an honest footnote: The last step of getting the data into Intuit ProConnect needed a copy-paste handoff, and relying on AI to enter the data was painfully slow. A single W-2 took 10 minutes. We got it down to 4 minutes, which was better, but still far too slow.

The obvious move was to point more AI at the problem. Let it click through ProConnect, read the screen, type the number, repeat. We expected it to learn and get smarter, the way a person would. It didn’t. It was slow, it cost real money per return and it occasionally got creative (i.e., put data in the wrong fields).

So, we asked a different question: Where can we take out AI entirely?

Entering a number into a box is not a judgment call. Wages go in the wages box. Every time. Once we saw it that way, the answer was plain code, and plain code is fast, cheap and does the same thing every run.

We built a Chrome extension called the “Tax Importer” that works inside ProConnect. You give it a structured file of the return (the data, as a JSON file), and it types the whole thing in. Each screen is mapped, so it knows exactly which value goes in which box. So far, it handles Form 1040 returns for tax year 2025. After each entry, it checks the field and turns it green once what’s on the screen matches what was supposed to go in.

Switching from AI to plain code took the W-2 data entry time from 4 minutes (10 at the start) down to 3 seconds. A typical full return takes under 90 seconds to get entered.

It reads a return that’s already in ProConnect, compares those fields to the data file and flags every difference. Your associate can run a quick self-review before sending a return up the chain.

A new client came to my firm needing an amended return for a complex filing, so we had to re-enter everything. I hired two freelancers on Upwork and gave them the return as filed as an answer key. After a week-long turnaround and over $1,000 in total fees, neither got it 100 percent right, and my own review meant sending notes back and waiting another week.

So, I ran the same job through the Tax Importer extension. It entered the full return in about two and a half minutes, then flagged the inputs that didn’t match what the contractors had entered. There were transcription errors, the kind anyone makes after hours of moving numbers from one screen to another. On one side: 14.5 hours of contractor work, two and a half weeks of back-and-forth and over $1,000 in fees. On the other, two and a half minutes, no review points.

The contractors weren’t the problem. Typing numbers was never where their value was. With AI today, it should never have needed a person.

AI didn’t disappear. It moved. It’s exceptional at extracting data, so we use it to read PDFs and turn them into structured data files, with a person confirming every low-confidence extraction before anything is entered. It also reasons through the review steps of the workpapers, and we used Claude’s CoWork for Chrome as an AI browsing agent to build the map of ProConnect that drives the extension. I’m building this workflow into our practice management software (in public beta) so it can drive the import directly.

Before AI, I used a framework called ODAD (Optimize, Delete, Automate, Delegate) to profile a process and figure out how to make it better. That still applies but Automate now has a branch inside it. AI lets us move far more of the human work into automation, and that’s the unlock. 

Thinking about AI’s cost the same way you’d think about a person’s time is the new branch. Judgment belongs to AI. “If this, then that” belongs to plain code. When a task repeats, the best use of AI is often to build the plain code, then step aside. AI wrote the code for the importer, the code does the entry and we don’t pay for AI’s token consumption on every return. As before in ODAD, delegate only what’s left to a human. That way, by not wasting their time, they’re not wasting my money.

Merrick Wiessner and Kaya Paz stayed with this after the term ended. Their summer work brought the real wall into view: We were working around AI’s limits when we should have been designing around them.

I said this last time, too. If you can’t dedicate 20 percent of your own time, or 20 percent of your firm’s time, to building the tools your team needs, hire people who can. I do this myself: I still review the returns, and I make the time to build what makes that review faster. Tax Importer is private for now, but Power Tools for ProConnect, a free extension I built on the Chrome Web Store, adds dark mode, conditional formatting, edit history, and more. If something in your firm came to mind while reading this, I'd love to hear it.

Less AI, Better Results

Sometimes the smartest move is knowing where AI doesn’t belong. Discover how a firm rethought its workflow, replaced slow AI-driven data entry with straightforward code and freed up time for work that requires human judgment.

CFOs are navigating a fast-moving financial environment that is more complex and volatile than at any point in recent memory. Rising costs, shifting customer behavior, talent shortages, supply chain disruption and evolving tax rules continue to reshape how organizations operate.

Traditional reporting cycles that depend on periodic closes and static forecasts do not always keep pace with operational changes. CFOs and finance leaders need access to timely information, clear analysis and insights that extend beyond compliance. This shift is prompting organizations to rethink how financial data is produced, interpreted and used.

Operational Complexity and Reporting Challenges 

Operational issues directly affect internal finance functions. Delays in month-end closing, manual reconciliations and disconnected systems often lead to outdated reports. Forecasts become unreliable when underlying assumptions shift faster than models can be updated. Companies with limited accounting resources may struggle to maintain consistent reporting practices, which further complicates planning.

In many cases, businesses cannot easily adopt new systems or technologies due to staffing limitations or resource constraints. Although cloud-based platforms promise real-time data, organizations may lack the integration necessary to access that benefit. As a result, leadership may rely on information that does not fully reflect current conditions.

The Need for Reliable and Forward-Looking Insight 

As decision cycles shorten, CFOs require insight that is both current and forward looking. Companies increasingly want visibility into profitability drivers, cash flow behavior and potential scenarios. AI and advanced analytics are emerging as valuable tools in this area. They can analyze large amounts of data, surface anomalies and present performance indicators more quickly than manual processes allow.

AI-enabled forecasting models offer another advantage. They can refresh projections as new information becomes available, allowing CFOs to see evolving trends before they materialize in traditional reports. This supports more agile planning and helps companies respond proactively to changing conditions.

CFOs continue to face expanding tax responsibilities. State nexus considerations, federal updates and new incentives all contribute to a more complex environment. Companies that limit tax planning to year-end risk unexpected exposures and missed opportunities.

AI-supported tools can assist in maintaining year-round awareness of tax developments. They help interpret regulatory updates, compare positions across periods and identify potential compliance risks. These capabilities enhance the CFO’s ability to advise on entity structure, multistate activity and long-term planning.

Many organizations still rely on outdated or fragmented financial systems. Legacy software may not support real-time data. Multiple systems may require manual compilation of reports.

AI and automation work best when integrated into a broader finance ecosystem. Automated reconciliation, data extraction and intelligent modeling require reliable and consistent data to generate accurate insights. CPAs can help companies evaluate system needs, improve data practices and identify tools that align with operational goals.

Harnessing AI for Strategic Decision Support 

AI provides significant value in strategic planning. It can evaluate multiple scenarios,

identify patterns, highlight risk areas and model the impact of potential decisions. Companies that previously waited for manual updates can now access forecasts that refresh as conditions change.

This creates new opportunities for collaborative planning. CFOs can assess future outcomes before acting and explore a wider range of strategic options.

As technology produces more-detailed analytical output, clear communication becomes increasingly important. Companies rely on CPAs to explain what the data means, why it matters and how it should influence next steps. Effective communication links financial insight to operational strategy and supports confident decision making. AI enhances the analytical process, allowing CFOs to provide interpretation, context and informed recommendations.

Practical Steps Toward Effective AI Adoption 

CFOs can help companies adopt AI in stages that minimize disruption. Practical steps include identifying processes suitable for automation, improving data governance practices, selecting systems that integrate with AI tools and training finance staff to understand AI-generated insights.

The financial landscape will continue to evolve, and companies will require more timely information and more accurate analysis. AI will play a growing role in addressing these needs. CFOs who understand the pressures businesses face and who incorporate AI-supported insights into their advisory approach will strengthen their position as trusted professionals. 

Understanding the Ups and Downs of CFO Decision Making

CFOs are navigating a financial environment that is more complex and volatile than at any point in recent memory, prompting organizations to rethink how financial data is produced, interpreted and used.

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