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Aiysha (AJ) Johnson, CEO and executive director of New Jersey Society of CPAs.
Aiysha (AJ) Johnson, CEO and executive director of New Jersey Society of CPAs.
NJCPA CEO opens up about accounting industry’s issues
Martin Daks//October 9, 2023//
In May, following the retirement of longtime leader Ralph Albert Thomas, the New Jersey Society of CPAs (NJCPA) named Aiysha (AJ) Johnson as its CEO and executive director. NJBIZ spoke with her soon after, but now – after a few months in the hot seat – we caught up with Johnson to get her latest thoughts.
NJBIZ: Thank you for carving out some time for this. So, you’ve had some time to settle down. Any surprises?
Johnson: I’ve been on the road a lot, meeting with members to understand their priorities.
Q: And what’s on their mind?
A: One [thing] is clear: everyone’s invested in the future of the profession. But they’re also concerned about the pipeline, attracting new people to come into accounting. Unfortunately, there are no fast answers. We have to start with students to create an awareness of the profession.
Q: Do you mean more college awareness?
A: We have to speak with educators and start before they get to college. And once they’re at college level, we have to keep them interested. And once they graduate, we have to work to show them the path to getting licensed as a CPA. There are so many opportunities.
We’re also trying to get more minorities and women into the profession by emphasizing mentorship programs, and letting people know that everyone can flourish in accounting, regardless of who you are. At the same time, we’ve got to do a better job of reaching underserved communities. That brings us back to schools and getting young professionals to connect with their high schools and colleges. They will be relatable, so even if some students do not have family CPA role models, they’ll be able to see that opportunities are available.
Q: Do you think the 150-credit hour educational requirement has helped to exacerbate the CPA shortage?
A: The AICPA and state accounting societies are talking about it, and the impact on the profession’s future. In New Jersey, innovative work-credit programs have been launched at Saint Peter’s University and PwC; and at Seton Hall and Withum. We will have additional conversations around this. If the 150-hour requirement is here to stay, then we’ll see what else firms can do to help. NJCPA also has a task force looking into this, and the team will make their recommendations to the board in December.
Q: What else is on members’ minds?
A: Digital transformation and artificial intelligence. They are industry disruptors, and we’re still looking at the implications and how to integrate them into accounting practices, and how educators can help students with the concepts. AI will not replace CPAs, but firms that use it will likely replace firms that do not.
Q: What about practice consolidation? We used to have the Big 8 CPA firms, now we’re down to the Big 4. And many smaller and mid-size CPA firms are engaging in M&A.
A: That trend is likely to continue as Baby Boomers retire, niche firms combine, and larger firms seek to expand. Independent practitioners and firms can remain independent, but they’ll be operating in a more complex environment. Clients, in turn, can benefit as CPA firms add to their knowledgeable staff.
Q: What are your goals as NJCPA CEO and executive director?
A: Right now, I want to continue to meet with members, to understand their values and issues, and work closely with them. It’s a win if we can represent the profession and be part of the change, and fulfill members’ needs. Everyone’s dealing with a lot of issues, but we all want the profession and those we serve to thrive.
Heard on the street
NJBIZ spoke with some leading New Jersey CPAs to get their thoughts on the profession’s opportunities and challenges
Dan Geltrude, Geltrude & Co. LLC founder and managing partner, says “There’s no easy solution to the accounting shortage. In the long run, it’s about more than just raising salaries. People now want more work-life balance, but the profession has a reputation for long hours, especially during busy (tax) season.”
Geltrude‘s firm offers flexible working arrangements “that moms, in particular, love. And we’re trying to leverage AI to take care of repetitive tasks and free people up for more creative projects. We’re also outsourcing some work, primarily to India, to take some of the load off our staff. The time difference between here and India also works to our advantage, since it basically lets us service clients 24 hours a day.”
The profession has no choice about bringing in more people, he added. “If CPA firms can’t do work, people can’t file their taxes on time, and corporate financial statements will not be submitted on time That will affect the entire financial market and stock market, and then it will be everyone’s problem.”
At Mazars, according to Principal US National Tax Practice Leader Tifphani White-King, “we strive and thrive in inclusive environments that recruit and retain all types of talent. For example, you will see us in big cities, mid-size towns and small villages; and we are on campus at HBCUs [historically black colleges and universities] and non-HBCUs. “
She noted that the firm seeks out “traditional and non-traditional accounting majors, and we ensure diversity in all areas of our talent acquisition process, inclusive of whom and with whom one interviews.” Among other initiatives, the firm offers “formal, informal and bespoke mentorship experiences” for everyone.
Endangered species?
“Polar bears and CPAs are rare species,” chuckled Smolin, Lupin & Co. LLC member Carlos Ferrer. “When it comes to CPAs, at least, it’s a bad time for a shortage, since matters are moving faster than ever and – because of the internet, emails and texts – everyone expects answers faster than ever.”
But the firm’s flexibility, including work-from-home, work-life balance, and commitment to recruiting diverse candidates, has enabled Smolin to avoid the worst of the pinch, while maintaining an annual churn rate of less than 5%, according to Ferrer and Smolin Director of Human Resources Janess Messner.
“We don’t look over people’s shoulders,” said Messner. “At the same time, we offer a supportive, collaborative work environment. The firm has taken on additional staff and employed alternative operating measures to ease the burden of pressing volume during the busy seasons.”
Having a diverse staff – thanks to heavy recruiting at local schools, including William Paterson University, Ramapo College, and Montclair State University – also helps give the firm a lively atmosphere and positions it to relate better to a diverse set of clients, Ferrer observed. “I was born in Cuba and was the first Latino recruited by the firm,” he said. “We have women and people from a wide range of ethnic groups at all levels of the firm, including partner level. People look to find a home at Smolin because of the working environment that provides opportunities to learn, advance and make friends.”
Still, like a storm gathering on the horizon, Ferrer is concerned about the pipeline of future accountants. “The 150-hour education requirement [to sit for the CPA exam] likely drove some people away from the profession,” he noted. “At the same time, however, more students are pursuing a dual major, pairing their accounting studies with marketing, finance or IT, so they’ve got even more skills. And we’re also opening more promotion paths for people who do not have a CPA. We just promoted one such person to manager — and I can remember when that just did not happen. CPA firms are also keeping good people who don’t have a CPA by creating new job titles, like director of small business clients. The profession faces some challenges, but we’ll adapt.”
Smolin has expanded to about 125 people and continues to grow by taking on other practices—such as the January merger with Roche Miseo Barchetto LLC, and the previous combination with Simon, Spinelli & Ciambrone. “People like the way our firm is run,” Ferrer said. “And they want to join with us as we grow.”
