00;00;00;00 - 00;00;17;08 Speaker 1 Hello and welcome to the accounting for California podcast. My name is David Hemphill, an information and planning analyst here at the KBA. And this is our sixth episode, and I am very honored to be joined by new CBA President Catrina El Salazar, CPA, very official. 00;00;17;10 - 00;00;19;05 Speaker 2 Why thank you, David. Glad to be here. 00;00;19;07 - 00;00;38;21 Speaker 1 All right. Thank you for joining us. Congratulations on your recent election as CBA president. That happened just in November. And you also recently passed your ten year anniversary of being appointed originally to the CBA, which was in late 2012. So what would you say has been the most rewarding part of being with the CBA for so long? 00;00;38;26 - 00;00;57;05 Speaker 2 Wow. You know, that's a great question. And ten years is is a lot to reflect back on. But you know, when I think about it, I really joined the board to give something back to the profession. And sort of the surprise was how rewarding it was going to be to work with top notch volunteers and board members and staff. 00;00;57;05 - 00;01;02;10 Speaker 2 And that has really sort of been the the silver lining to this whole experience. That's been. 00;01;02;10 - 00;01;19;13 Speaker 1 Fabulous. I love that, and I hear that from so many CBA and committee members that they, you know, they did it to do the right thing, but it it ended up being so much more than they thought it was going in. So that's good. We'll touch on that a little more in a little bit. But this is not your first time as CBA president. 00;01;19;15 - 00;01;27;05 Speaker 1 What would you say is the biggest difference in the landscape of the accounting profession since you were last CBA president, which was back in 2016? 00;01;27;09 - 00;01;53;24 Speaker 2 That's that's a tough one. There's so many issues out there. But I think the biggest change probably has been the virtual work environment. I think it really stands out as just being transformative for accountants specifically. I mean, it's impacting so many businesses. It's impacting the clients, and it's definitely impacting our profession. So from where I sit, I kind of think it's, changing how services are then delivered to clients. 00;01;53;26 - 00;02;10;27 Speaker 2 It's changing the markets where accounting firms can provide their services by sort of, tethering them to the geography of where their home or their office might be located. Sure. And it's just changing how people work across the board. So I think maybe that's the big change since I was here last. 00;02;10;28 - 00;02;14;08 Speaker 1 Yeah, I would agree with that. And you would say that's a change for the better. 00;02;14;11 - 00;02;26;17 Speaker 2 I think. So I think it's a tremendous opportunity really. So, you know, with with change becomes, you know, the opportunity to make things better and frankly, really find it as a way to attract people to our profession. 00;02;26;19 - 00;02;34;03 Speaker 1 A great, good. What are some of the priorities you would like to see the CBA achieve as we're heading into 2023? 00;02;34;06 - 00;03;01;21 Speaker 2 Kind of feels like there's so much on the board's plate right now. But I think at the top of my list is helping candidates prepare for the new exam that's going to be launched in January of 2024. Right. Our listeners may have heard about CPA evolution and that the exam is changing. So it's really being modernized to reflect how the skills and knowledge that CPAs are using today in this increasingly technology driven marketplace. 00;03;01;21 - 00;03;25;00 Speaker 2 So our profession is changing, and it's time to really tweak the exam to make it more reflective of what our employers need today. The exciting thing about this is it gives some more opportunity to our candidates and hopefully gives them the ability to selected discipline that that will be attractive to people who are considering or maybe on the fence about whether or not accounting is the profession for them. 00;03;25;00 - 00;03;48;10 Speaker 2 So there's a lot we can do with communicate and helping candidates move into the licensing process. We can help our current licensees understand what those changes mean for their employees and for their business. And then there's also a lot of other priorities that we have there. You know, we've got social media and communications platforms that are just continually evolving. 00;03;48;10 - 00;03;55;26 Speaker 2 So I really think it's about being more accessible and being more value to those candidates and licensees that we serve. 00;03;55;29 - 00;04;05;00 Speaker 1 Good for our current licensees. What would an influx of more technological savvy CPAs entering the marketplace mean for them? 00;04;05;07 - 00;04;29;13 Speaker 2 You know, I think that's a great question. I think there are a couple parts that, first of all, technology has been changing the role of auditors and accountants gradually over the years. So our current practitioners are already really being steeped in it. It's really changed how, accounting is done. It's not, green paper ledgers and, in manual processes as much as it used to be. 00;04;29;13 - 00;04;55;23 Speaker 2 And so that's already happening. But we do with this new evolution model have we have a discipline called information systems and controls where new candidates are able to, really focus in on that area. And so when a candidate gets their license and comes into a firm, I think that that knowledge really enhances an accounting firms ability to dig in to the information systems of their clients. 00;04;55;23 - 00;05;18;22 Speaker 2 And provide some real value added services. So today, a lot of firms are doing that, but they may be outsourcing because it isn't an area of expertise that CPAs always have under their belt. So I think this is a great way to marry technology with our current profession and really prepare ourselves for the changes that will continue to come down the road. 00;05;18;22 - 00;05;31;15 Speaker 2 So I think it's a great sort of opportunity for our licensees as well as our new candidates, to stay on the cutting edge of the accounting profession and really help it change for the better in the future. 00;05;31;16 - 00;05;42;03 Speaker 1 That's great. Yeah, and that's exciting for the future, for sure. We'll touch a little more on CPA evolution in a little bit, but what do you think is the most important role of the CBA in your opinion? 00;05;42;06 - 00;06;09;29 Speaker 2 Our listeners are probably familiar with the three sort of primary roles, which are licensing, discipline and regulation of California CPAs. But, you know, I really think that our most important role is to do those things in the public eye to make sure that we do it with a wide ranging group of board members and stakeholders, so that we're making sure that we are transparent and that we're bringing a diversity of experiences and ideas to serve the profession. 00;06;09;29 - 00;06;17;04 Speaker 2 And I really think that's the hallmark of what is making the experience, working with the board such a good one for me. 00;06;17;10 - 00;06;30;12 Speaker 1 Very good. Before we jump into some other CBA topics, can we learn a little more about you, the person? What do you enjoy doing, Miss Salazar, when you're not focused on protecting consumers and regulating the accounting profession? 00;06;30;19 - 00;06;48;08 Speaker 2 Well, you know, I'm kind of I like to stay busy, which is a good thing. You know what I, what I find I love doing is just really keeping mentally active. So I love working. But, you know, I have a great time. I spend a lot of time with my family. During Covid, we actually adopted two more animals into our little animal family. 00;06;48;08 - 00;07;05;05 Speaker 2 So now we are excited owners of two huskies and they keep us on my toes all the time, I bet I love skiing, I love getting away to go to the Sierras to ski a bit. I spend a lot of time off roading. I've joined an off roading club and spend a lot of time on the trails. 00;07;05;11 - 00;07;15;10 Speaker 2 And when I'm at home, I love reading and believe it or not, one of my most relaxing things I do is I go for runs. So I just like to keep busy being active. It's great. 00;07;15;15 - 00;07;43;27 Speaker 1 Well, you sound very active. That's good. And I don't know when you have time to do all of this because as we're about to see, you do a lot more than just what you do here in California. So in addition to your CBA responsibilities, you serve on the board at Naspa, at the National Association of State Boards of Accountancy, and you're on the Board of examiners at the American Institute of CPAs, plus, you're the chair for NASA's Diversity Committee and AICPA State Board Committee. 00;07;44;03 - 00;07;49;05 Speaker 1 So you're busy. Can you tell us a little about the work that each of these committees performs? 00;07;49;07 - 00;08;18;16 Speaker 2 Well, thanks for asking for the board of examiners. That's really interesting because this group oversees the administration of the CPA exam. So it's a it's a very high level role where it is where this committee assists with the development of the exam strategy, oversees the practice analysis and looks at standards and definitions. So it is a very interesting opportunity within the I CPA. 00;08;18;18 - 00;08;20;23 Speaker 1 Well that's an important committee though. It sounds like it is. 00;08;20;23 - 00;08;43;10 Speaker 2 It's it's really engaging and as a California and it's been enlightening to see how much work is done at the National level to ensure that this national exam is robust, reflective of what is needed by our profession, and what accounting firms are looking for in their newly licensed graduates or newly licensed CPA. So they do great work there. 00;08;43;12 - 00;09;11;14 Speaker 2 And I'm also on the state board committee for the AICPA as well as being a board member for Naspa, ensuring their diversity committee. So I'm very excited about all of those roles, and they all overlap. And really the work on one really facilitates the conversation and the other areas. So I'm I'm most excited because I think bringing that information back to our state helps our board stay engaged and and timely on issues. 00;09;11;15 - 00;09;16;07 Speaker 1 Why do you think it's so important for California to be represented on this stage nationally? 00;09;16;10 - 00;09;41;21 Speaker 2 That's a good question. I think it's important for California to take a seat at the national table, primarily because we represent the largest pool of licensees within within the United States. So we really serve our profession and our state. When we have a seat at the table and engage in issues before they're decided. And sort of the national strategy has been designed. 00;09;41;24 - 00;10;01;20 Speaker 2 But the other reason I think it's really important is, you know, we're fortunate to come from a state with some really great diversity. You know, we've got just a lot of cultural, ethnic diversity, in California is, you know, unlike a lot of places. And so our board is one of the most diverse boards in the country, one of the most diverse accounting boards in the country. 00;10;01;20 - 00;10;28;15 Speaker 2 And I'm really proud of that. So I also think it's important to put that representation from our state out there. And, you know, it's great to see role models for other people. And, you know, hopefully California continue to kind of be a leader and model some of those more diverse ideas. So I just think there's the representation of our state and also to hopefully be mentors and role models out there for people who might be looking at our profession. 00;10;28;15 - 00;10;43;22 Speaker 1 Let's stay on that diversity topic for just to speak, because one of the goals in the CPA's latest strategic plan, which was 2022 through 24, was an increased focus on diversity. Why do you feel that is so important to the future of the accounting profession? 00;10;43;24 - 00;11;13;29 Speaker 2 For me, I you know, I look at demographics, I think that things are changing. We are becoming more and more diverse as time passes within our state. So I think it's really important to look sort of at the supply and the demand. We have a changing demographics. We have more diversity in the student population today. And if we're not reaching out and appealing to them and really engaging with all different groups of people, we are going to miss the best and the brightest. 00;11;14;01 - 00;11;36;27 Speaker 2 So I think a lot of it really has to do with setting our profession up to be attractive to the best candidates that are out there. And I think that is part of why it's so important to have a well diversified board. And again, I mentioned role models. So I think having images and people out there that you can look to, I think is really important. 00;11;36;27 - 00;11;47;14 Speaker 2 So hopefully our board can do that. And through things like communications and outreach, maybe put that information out there. Maybe we'll inspire some future CPAs one of these days. 00;11;47;14 - 00;12;11;14 Speaker 1 Absolutely. I look forward to seeing where that goes. All right. The California Board of Accounts, he does have multiple openings as of this time. And there are also vacancies on some of the CBA advisory committees. Coming from someone who is so involved, like yourself in committees and giving back to the profession, what would you say to individuals who have maybe thought about volunteering and making a positive impact, but haven't taken that step yet? 00;12;11;16 - 00;12;29;12 Speaker 2 Well, in my experience in volunteering, at least with the Naspa committee, it took someone asking me, someone pulling me aside and going, hey, you know what? I think you should consider finding a committee to volunteer for. And and so I think being asked is probably the most important thing. And so I know it's it's that way for me. 00;12;29;15 - 00;12;52;23 Speaker 2 So for my listeners out there, they've thought about it but maybe not dug into it. I'd ask you what's keeping you from doing it? The time is never going to be perfect, but the rewards are going to be fantastic. So I would encourage you to reach out and submit your name to be a volunteer. So if you haven't been asked before, I'm asking you, the listener. 00;12;52;23 - 00;12;54;06 Speaker 1 Consider yourself asked. 00;12;54;12 - 00;12;55;12 Speaker 2 Why not? You? 00;12;55;16 - 00;13;13;08 Speaker 1 Exactly. And you can go. There's some information on the CBA website. You can go to the about section. And then there's says Opportunities to Serve. So you can click on that and find out exactly what you need to do to take those next steps. All right. We encourage you. That's good. Come on out and ask, when did you get interested in accounting. 00;13;13;08 - 00;13;17;17 Speaker 1 And make the decision for yourself to become a CPA. Go back down memory lane. 00;13;17;17 - 00;13;42;08 Speaker 2 Yeah. No, that's a good question. So I was a nontraditional candidate. I came to public accounting after I graduated from college, so I wasn't an accounting major. Okay. I did take two accounting courses while I was in college. And then it was after I graduated that I kind of realize, wow, you know, I could really focus on helping individuals and businesses with their finances through becoming a CPA. 00;13;42;15 - 00;14;10;19 Speaker 2 And that became really attractive to me. So I actually went back to school after I just finished school to take more classes and sit for the exam, and it has been one of the best decisions that I have ever made. It has opened so many doors and been such an amazing experience that I would absolutely encourage folks to consider the profession and it is work to go back and take classes, but it was something that I did and that and it was absolutely worth it. 00;14;10;19 - 00;14;23;22 Speaker 2 So if you are along that pathway, maybe you're already in school. Consider it. It's it's not too late. I know I completed my education and then made the decision to move on towards accounting, and I haven't looked back. 00;14;23;27 - 00;14;45;05 Speaker 1 We know there are people that have made career changes later in life and have gone into the CPA, so you made that choice. So here we are the beginning of 2023. Why should young people that are maybe haven't figured out their major yet, or they're maybe in high school getting ready for college? Why should young people consider accounting and obtaining their CPA license as a career choice? 00;14;45;07 - 00;15;02;12 Speaker 2 One of the neatest things about this profession is it's a door opener. You know, I'm all about keeping doors open. I don't want to closed doors. I want to keep choices and opportunities open for myself and for the people that I mentor. And that's my advice, you know, keep as many opportunities in front of you as you can. 00;15;02;14 - 00;15;26;14 Speaker 2 And this really is almost a gateway career. It is a door into any profession. So I think it's amazing that with this one skill set, it has so much utility. It is so versatile. You can use it to get into the movie industry or in medicine. I know I'm never going to be a movie star, but if I had wanted to, I could have been in that industry, working in the industry, maybe. 00;15;26;14 - 00;15;27;01 Speaker 1 Studios. 00;15;27;02 - 00;16;05;14 Speaker 2 Medicine, their books. So, you know, if you can dream of the industry, there is someone who specializes in accounting there. And so I think that alone makes it kind of unique as an opportunity for students to consider, as they look at their options in front of them. Yeah, this is great. Even if you want to start your own business, having a background in in accounting is a great launching pad to becoming your own entrepreneur or even working in industry, because you may be working in a division and you know what to do with those financial statements, and you know how to engage with the accounting team and get done what you need done. 00;16;05;14 - 00;16;13;26 Speaker 2 So it really is a profession that I look at and say it's only bounded by your imagination. 00;16;13;29 - 00;16;30;14 Speaker 1 It's such a good answer. Now, glancing at your resume, it looks like your CPA license has allowed you to work for many different types of organizations. Over the years, you've been as the role of CFO for many of those. What was the most interesting niche or angle of the industry that you've worked in? 00;16;30;17 - 00;16;49;17 Speaker 2 You know, for me, I don't know that it's the most interesting, but it's the one that I love the most. I'm really drawn to working with nonprofits, and for me, especially those involved in education. What I love about nonprofits is it's really for the mission, it's for changing the world to make it better. And and that just resonates with me. 00;16;49;17 - 00;17;04;27 Speaker 2 So I find that people that are attracted to that are just really exciting to work with. They're inspiring and they're motivating, you know, motivational. And so that really kind of has been what I would answer is, say, working on profits has just sort of been a unique experience. 00;17;05;03 - 00;17;10;05 Speaker 1 That's great. Do you see the need for CPAs continuing to grow in the next ten, 20 years? 00;17;10;08 - 00;17;36;04 Speaker 2 Absolutely. I think, the role of CPAs will continue to evolve. You know, we talk about CPA evolution, but the truth is we continue to adjust, you know, every couple years our exam adjusts standards and rules. The accounting profession just has changed dramatically over the decades. And and I anticipate that that's just going to continue. So it really is full of opportunity. 00;17;36;04 - 00;17;52;07 Speaker 2 It's not you learn how to be an accountant in your don when you go down this path where you really open the opportunity to become a lifelong learner and to be able to continue to renew and to become cutting edge no matter where you are in your field. 00;17;52;14 - 00;18;17;17 Speaker 1 And let's talk about you just touched on CPA evolution. Again, it's going to be a priority for the KBA in 2023, just to make sure everyone's aware of the change that's coming. Since we're talking about people potentially entering the accounting profession, and the entire licensure model for CPA is evolving to be more technology based, do you feel are these the right changes to better equip the future CPA? 00;18;17;20 - 00;18;41;13 Speaker 2 I think they absolutely are. And to sort of step back a little bit, I think it's worth mentioning that there was a lot of discussion and debate and research that went into evolution, and I'm confident that all of these stakeholders and all of this input has really put us on the right path moving forward. I am absolutely certain that this will better equip our future CPAs. 00;18;41;15 - 00;19;03;29 Speaker 2 You know, it's also worth noting here that, you know, part of evolution. Part of the reason for it is there has been such a massive expansion just in content, in the skills and knowledge of needed for all the rules and standards that face the candidates. So at the same time, we're embracing technology and incorporating that into our licensure model. 00;19;04;06 - 00;19;29;08 Speaker 2 We're also allowing the licensure model to more closely reflect, I think, the experience candidates have in the workplace when after their license, where, you know, someone might decide to go into tax or they might decide to go into an audit area. So we're kind of aligning the model more closely with that kind of professional experience and giving a little bit more choice. 00;19;29;08 - 00;19;49;25 Speaker 2 And so I think that's really exciting. But again, the exam through a program called Practice Analysis that happens every few years, it will continue to evolve. So I think this is really just part of whether we call it evolution. It's really part of the process that's been baked into the accounting profession. That's helped keep us current for years. 00;19;49;25 - 00;20;05;04 Speaker 2 And I'm really excited that it will continue to function. And we're going to stay on the cutting edge because, you know, we know what accounting services are like today. And we have to position ourselves for all the changes because it is going to continue to change. 00;20;05;11 - 00;20;25;00 Speaker 1 That's great. Yeah. It was such a collaborative effort. How evolution came together. And we have a an entire page on the KBA website dedicated to CPA evolution. If you want to go learn a little more and the exact dates when this is happening, the the transition policy for candidates that will be in the midst of taking their sections as the calendar turns to 2024. 00;20;25;00 - 00;20;42;06 Speaker 1 So there's a lot to make sure you know. So go check out that, that web page CBC.ca gov. So let's go back. This is kind of a fun question. If you could go back and offer the Catrina Salazar just entering her career as a CPA one bit of advice, what would it be? 00;20;42;08 - 00;21;06;27 Speaker 2 Well, I would the advice I would give to myself or a newly licensed CPA is that as they go through their work experiences to start curating a group of people that they can use as a sounding board. So it might be people who they've used as references. It might be a former professor that they, engaged with and had dialog with. 00;21;07;03 - 00;21;30;05 Speaker 2 What I'd suggest is you find, you know, a peer, a mentor, different people that you've worked with and stay in connection with them. Because what I found is it's always helpful to have third parties, people that you know, who know you to just kind of get their opinions on things. Is this a good career move? What do you think of this industry? 00;21;30;05 - 00;21;48;20 Speaker 2 I think new CPAs, CPAs today have a lot of choices. That's one of the really exciting things about the license is it opens so many doors. So it's always good to have that professional sounding board, that group that you can call and say, hey, can you be honest with me? What are the next things I could work on? 00;21;48;20 - 00;22;11;12 Speaker 2 Is it public speaking? How's my writing? Whatever it is you want to get that not from your supervisor necessarily, or your coworker, but from people that you trust that you can develop. So keep in contact with those people. You're going to know when you find them. But I would say kind of keep that as a conscious thought in your mind, because you'll run into these people that way. 00;22;11;12 - 00;22;24;03 Speaker 2 You can kind of go, oh, maybe I'll keep in contact with them. And sometimes it's as simple as saying, I really enjoyed working with you. Would you mind if I checked in with you every quarter or every six months, just to see how things are going? 00;22;24;06 - 00;22;40;22 Speaker 1 I like that you don't need to be on an island doing this. Get a little, a little encouragement is always a good thing from time to time. Well, President Salazar, thank you so much for being part of our podcast today. We wish you all the best of luck in your presidency here in 2023, and we're looking forward to some great things from the CBA this year. 00;22;40;24 - 00;22;42;06 Speaker 2 Thank you and Happy New Year.