Enjoy our library of free downloadable content includes white papers, webinars, product guides, case studies, industry analysis and much more, provided by experts and vendors within the accounting profession. 

Membership

CPE & Events

Advocacy

What's Happening

Become a CPA

Header

 update your Membership Auto-Renewal payment method

Your go-to source for expert insights, industry updates, and exclusive CalCPA content. Stay ahead with practical guidance, pro tips, and must-know trends—all designed to fuel your success.

Stay ahead with essential CPA resources

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.

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.

Understanding the Ups and Downs of CFO Decision Making  

From Refunds to Supply Chains: How Businesses Can Reduce Tariff Costs

With trade policies in flux, businesses need more than a short-term fix. Explore how CPAs can help clients navigate tariff costs, improve financial decisions and uncover opportunities to strengthen profitability.

CalCPA Forms Group Focused on Innovation and Growth

Bringing together leaders from the profession with diverse experience and perspectives, the Growth Strategies Task Force will explore innovative ideas and opportunities to help the accounting profession navigate the future.

Golden State wisdom straight from the experts

Professional Interest Areas

Accounting & Finance

Audit & Assurance

Business & Firm Management

Business & Industry

Client Advisory Services (CAS)

Estate & Trust Planning

Forensic Services

Government

International

Not-for-Profit

Personal Financial Planning

Professional Development

Technology

Morning coffee and curated news?  Get the top headlines and information to keep you ahead in the business world..

Daily Clips newsletter

Rise & Stride Podcast

brainfood bytes

Listen and watch...

Looking for an old article or a past issue from California CPA magazine? You're in the right spot!

Past articles and archives

CPAs: Making Sense of What Comes Next campaign

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.

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. 

Companies are facing a myriad of tariff charges that are increasing costs. As CPAs, we can help them.

Generally, there is now a 10 percent tariff surcharge imposed on all goods coming from our major trading partners, including Canada, Mexico, India, the UK and EU. Tariffs on goods from China and Japan are levied at 12.5 percent. Some products, like those under existing trade agreements with Canada and Mexico, are excluded. But that’s just the start. 

Responding to February’s Supreme Court decision to overturn the administration’s imposition of tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977, new tariffs ranging from 25 percent to 100 percent have been imposed under various prior trade acts on steel, aluminum, copper, automobiles, lumber, kitchen cabinets, certain upholstered furniture, semiconductors and pharmaceuticals. 

Certain industries and countries are facing even higher tariffs. Canada, for example, has seen an additional 50 percent tariff imposed on a broad range of goods, including certain dairy products, plastics, furniture, machinery, paper and electronics. Some of these tariffs have been in effect since before the IEEPA decision and are still in effect. It’s important to know that many of these rates are surcharges above the typical tariffs charged.

It’s a lot. And it’s confusing. So, what are businesses affected by these tariffs doing to mitigate costs and navigate policies that frequently change?

Because the Supreme Court overturned the administration’s tariff levies under the IEEPA, billions in refunds are available. A company cannot apply directly for these refunds. Instead, they must go through the process with their original broker of record and apply at the 

U.S. Customs and Border Protection’s (CBP) CAPE refund system

My clients tell me that refunds can take two to three months to receive. Many of the major shipping companies, like FedEx and UPS, have promised to return refunds they receive back to their customers, so it’s important to follow up with them too. 

Remember that refunds are taxable, so it’s important to revisit tax payments made during the year in case they’re understated.

If you’re a CPA providing attestation services, you should also review how anticipated refunds are reported in your clients’ financial statements. Depending on the circumstances, refunds may require adjustments to inventory, cost of goods sold or other accounts. 

 in September addressing recognition, presentation and disclosure issues.

Importing products from a country into a 

 or a warehouse that’s in a foreign trade zone incurs zero tariffs until that product is eventually shipped out to its domestic location. For some of my clients, it’s a good way to defer the impact of tariffs until a future date, and, given the volatility of the administration’s tariff policies, it may actually reduce tariff exposure if tariffs are renegotiated down while products are still in the warehouse. 

If a product is received into a bonded warehouse and then immediately shipped out to a foreign customer, tariffs can be avoided altogether. This arrangement comes with warehousing fees, so we need to help our clients assess the return-on-investment for this approach.

It’s common for businesses to pass on any cost increases caused by tariffs to their customers. However, some of my clients have learned to closely analyze their client data—sales, gross profit, collectability—and imposed different price increases (and sometimes no price increase) on a customer-by-customer basis. This way they can target customers who they believe can best absorb these additional costs and give favor to customers who are profitable and good payers. 

Some have even added a separate line on their invoices to indicate the tariff “surcharge” so that customers better understand the increased cost. Doing so also makes it easier to remove tariff charges without completely changing costs in your accounting system. If you try this strategy, you may find you or your clients potentially eliminating unprofitable products or customers too.

Also, be aware that California’s Department of Tax and Fee Administration states that when the seller is the importer of record and passes import duties on to its customers, those charges are generally included in the taxable sales price. Separately identifying a tariff surcharge on an invoice does not, by itself, exempt it from California sales tax. 

 have helped a number of my clients find foreign suppliers in more tariff-friendly countries, as well as make introductions and facilitate trade agreements. Last year, the Small Business Administration launched its 

, which brings together several costly databases such as Thomasnet, CONNEX and IndustryNet so small businesses can find domestic suppliers that may offer favorable pricing.

In this volatile environment, many of my clients are avoiding long-term supply commitments and instead spending more time negotiating prices that take into account the added tariff cost. They’re finding ways to split the tariff costs with their suppliers so that each party shares more of the burden. They’re also using the opportunity to figure out alternative materials from similar suppliers.

Tariffs can be highest when a company purchases a finished product. One way to reduce this cost is to take on more assembly here in the U.S. U.S. assembly may reduce total import duties, depending on product classification, the value of imported components and applicable rules. To that end, ordering individual materials and then assembling them into a finished product may impact the final tariff cost paid. 

Some of my clients have been doing this assembly in a bonded warehouse to further defer the cost impact until ultimately shipped. If you’re going to investigate whether changing where your product is assembled, it may also be a good opportunity to investigate the materials used in the finished good to determine whether or not some of those materials can be purchased domestically and avoid tariffs altogether, or at the very least change their classification.

If an American company purchases a product from a foreign distributor, it’s possible to incur a lower tariff cost related to the change in value of the goods. That’s because the tariff charge would be levied on the cost of the original purchase, not on the price the American company paid. That means that if the American company paid $100 for a product, but the foreign distributor only paid $80, the tariff could be levied on the $80. This may be tricky because people don’t like to share costs. But it’s worth asking your customs broker whether your company qualifies and pursuing the necessary documentation to prove the case.

In the end, it’s all about your net profits. Implementing some of the strategies above may help your gross margin. But if the difference isn’t enough, you need to look below the line and do a line-by-line review of selling, general and administrative costs to identify potential savings. In addition, you may decide to lean into AI tools or more technology to increase productivity. The goal is to find enough savings to offset the margin declines you’re suffering because of tariff costs.

Businesses are dealing with a lot of uncertainty this year. But one thing’s certain: the administration has made it clear that tariffs aren’t going away. So, it’s important to have a strategy to deal with this challenge to stay competitive and profitable. As CPAs, we all have an opportunity to help our clients—or management—with this significant challenge.

Imagine it’s Friday at 3 p.m. An all-caps text is received from a bill-pay client. The client needs a contractor to be paid immediately so remodeling can continue at one of her restaurants in preparation for a much-publicized relaunch. 

With remodeling occurring at multiple locations, who can be surprised? An “emergency” distribution seems to happen every day. Just a quick text back telling the client to consider it done, make the transfer and start the weekend. 

Unfortunately, the request wasn’t from the client, but a bad actor posing as the client. When the client was shown the text, she agreed that everything indicated it was from her—except that it was sent from a different type of telephone than she used. The CPA took the bait.

As cybercrimes have hit the U.S. government and major U.S. companies, they can also hit CPA firms. Not only do CPA firms possess valuable, confidential client and employee information, but they also often have the authority to access and distribute client funds.

Fortunately, data security protocols can be created to help reduce the risk of a cyber incident when they are implemented and followed consistently.

Many cyber incidents begin with a phishing email, an operation in which a bad actor dupes the recipient into revealing personal or confidential information that is then used for illicit purposes. Common characteristics of phishing emails include:

Train firm members on how to spot and respond to potential phishing emails. After training, consider testing firm members by sending simulated phishing emails to demonstrate whether they are applying the knowledge learned.

Use Caution When Working Remotely on a Wireless Network

Bad actors may infiltrate the wireless internet when firm members are working remotely. Mitigate this risk by using a virtual private network (VPN), which can create a secure tunnel between the remote user and the CPA firm across the internet. Data traveling within the tunnel is encrypted and, if intercepted, is generally indecipherable.

Encrypt Emails Containing Confidential Information

To further reduce the risk of an email being intercepted, use encrypted email when sending confidential information outside the firm's network. Email encryption helps protect data confidentiality by transforming emails sent and received into an unreadable format for unauthorized users. However, if the bad actor has access to the CPA’s or client's email account and password from a prior phishing scheme, they will be able to view the encrypted emails.

More effective than email encryption, the use of a portal is one of the most secure ways for CPAs and clients to share information. Portal recipients receive an email when an item is awaiting review. The recipient can then click on a link, enter their login information, and access the content.

Practice Good Information Technology Hygiene

Use antivirus and anti-malware solutions. Install software updates and security patches on a timely basis, as they are often deployed to address known security issues. Follow the U.S. Department of Commerce’s latest guidance on passwords, found in the National Institute of Standards and Technology’s NIST Special Publication 800-63B-4, 

Digital Identity Guidelines: Authentication and Authenticator Management

CPAs use third parties for many services, such as seasonal help, tax preparation software, cloud storage, portals or payroll platforms for employees and clients. Paragraph .02 of ET Section 1.700.040, Disclosing Information to a Third-Party Service Provider, of the AICPA Code of Professional Conduct requires one of the following before the CPA firm discloses confidential client information to a third-party service provider:

Do your homework before using a third party to ensure that its data security practices are, at a minimum, as comprehensive as yours. Consider including language in your third-party service agreements requiring the provider to maintain cyber insurance and to agree to defend and indemnify you for any breach caused by them.

Consult your agent or broker to understand how the CPA firm’s various insurance policies respond to a data security event. Discuss ransomware, which has become a trending cybersecurity threat. Inquire as to how coverage would apply if a payment were improperly disbursed on behalf of the client or firm.

Remember our restaurant bill-pay client in need of an urgent disbursement on a Friday afternoon? Unfortunately, many CPAs have fallen prey to similar schemes. To help avoid becoming the next victim of a fraudulent act, CPAs providing services that require the distribution of client funds should consider, among others, the following:

The schemes orchestrated by bad actors cast a wide net, and those bad actors are regularly changing their schemes. Phishing attacks are not limited to email. Text messages, voicemails and other mobile devices are also phishing vectors. So the next time you receive an unusual request or message, proceed with caution and don't take the bait.

This article provides information, rather than advice or opinion. It is accurate to the best of the author’s knowledge as of the article date. This article should not be viewed as a substitute for recommendations of a retained professional. Such consultation is recommended in applying this material in any particular factual situation. Examples are for illustrative purposes only and not intended to establish any standards of care, serve as legal advice or acknowledge any given factual situation is covered under any CNA insurance policy. The relevant insurance policy provides actual terms, coverages, amounts, conditions, and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. “CNA” is a registered trademark of CNA Financial Corporation. Certain CNA Financial Corporation subsidiaries use the “CNA” trademark in connection with insurance underwriting and claims activities. Copyright © 2026 CNA. All rights reserved.

Don’t Get Victimized by a Cybercriminal

As cybercrimes hit government agencies and major U.S. companies, they can also hit CPA firms. Get up to speed on data security protocols to help reduce the risk of a cyber incident.

 — CalCPA has established a new task force to explore innovative ideas and opportunities that can help the accounting profession navigate the forces shaping its future. The group’s work will also create new possibilities for CalCPA to grow its impact.

The Growth Strategies Task Force brings together leaders from the profession who have diverse experience and perspectives, including individuals working in innovation roles at accounting firms, technology solution providers and entrepreneurial organizations.

The group will examine emerging needs and explore potential solutions, both independently and in collaboration with technology providers and other organizations supporting the accounting profession. Its work will advance the profession’s growth and evolution while creating opportunities for CalCPA to provide members with new resources, tools, and products.

“This group will help CalCPA champion innovation and power the accounting profession forward,” said Denise LeDuc Froemming, CalCPA President & CEO. “By bringing together forward-thinking leaders with diverse experience and perspectives, we can transform emerging needs and bold ideas into meaningful opportunities for our members and the profession.”

Stay connected to CalCPA as the group's work progresses and new opportunities take shape.

Stay ahead with essential CPA resources

Golden State wisdom straight from the experts

Less AI, Better Results

Understanding the Ups and Downs of CFO Decision Making

From Refunds to Supply Chains: How Businesses Can Reduce Tariff Costs

CalCPA Forms Group Focused on Innovation and Growth

Advertisement

Professional Interest Areas

Daily Clips newsletter

Advertisement

Listen and watch...

Rise & Stride Podcast

brainfood bytes

Past articles and archives

CPAs: Making Sense of What Comes Next campaign