Three Predictions

By Michael A. Thompson, CPA

I expect this year as chapter president to be filled with excitement as our profession goes through rapid change. Allow me to look at my crystal ball and make a few predictions: I predict that California will become a substantially equivalent state. I predict that California CPAs will be required to disclose their license status. Finally, I predict that CalCPA’s members will give back to the community through CalCPA’s financial literacy initiative.

Substantial equivalency: I predict that legislation will pass requiring those entering the CPA profession to obtain 150 semester hours of education. When California becomes a substantially equivalent state, California CPAs will be able to perform services for clients with a business presence in other states. CPAs perform audit services, expert consulting and tax services for companies and individuals nationwide. In practice many CPAs already cross state lines simply by making a telephone call, writing an e-mail or sending a letter to anyone in another state. Already 46 other states are substantially equivalent. A natural consequence, however, is that California CPAs will have to abide by the rules and regulations of the other states. Thus, CPAs will have to self-assess whether they are qualified to perform the services for which they are engaged.

License status disclosure: I predict that California CPAs with an inactive CPA certificate will be required to disclose “CPA Inactive” on their business cards and letterhead. Currently, inactive CPAs can refer to themselves on a business card, résumé or letterhead as being a CPA even though they have not taken continuing education. This legislation will primarily impact CPAs working in business and industry. Would CFOs want to refer to themselves as “CPA” or “CPA Inactive”? I believe this proposed legislation will provide transparency to the public.

CalCPA’s financial literacy initiative: I predict that CalCPA will give back to the community through its financial literacy efforts. Community groups and schools regularly request speakers from CalCPA to talk about financial basics. This service is free to the public, and there’s no salesmanship—our programs are purely educational. What a wonderful public service as we ride through these tough economic times. If you are a CPA and would like to participate in this program, let us know, and we will make it happen.

I would like to thank immediate past president, Karen R. Goodfriend, CPA, PFS, for her dedication to our chapter. I also would like to recognize Karen’s appointment to the AICPA PFS executive committee. This AICPA position is quite an honor, and especially so right now, given that Karen has risen to the top during our country’s economic turmoil. Let’s give Karen a round of applause.
— Michael A. Thompson, CPA

This entry was posted on Tuesday, May 19th, 2009 at 12:56 pm and is filed under President's Message. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.