As the new year begins, the New Jersey Society of Certified Public Accountants is looking to build on the momentum of a special 2023, during which the organization marked its 125th anniversary serving the needs of and empowering the state’s accounting and finance professionals.

On Jan. 19, 1898, the organization was established when four New Jersey accountants – Richard Stevens, Andrew Patterson, Leonard Conant and Charles Phelps – held the first meeting as the ‘Society of Public Accountants of the State of New Jersey’ in Room 1017 of the Prudential Building in Newark, with a membership fee of $5.

The stated reason for the formation was “for the mutual aid and protection of accountants in raising and maintaining among their number a standard of proficiency and integrity and in advancing the general interested of accountancy and securing its proper recognition as a profession.”

Among its first goals was advocating for the passage of legislation to regulate the accounting profession in New Jersey. Later in 1898, the Society proposed legislation to do just that – advocating for its passage for the next few years until it was signed into law in April 1904. That legislation created the CPA license in New Jersey via the newly created New Jersey State Board of Public Accountants, now known as the New Jersey State Board of Public Accountancy.

In May 1905, the organization’s first constitution and bylaws were adopted under the new name of the Society of Certified Public Accountants of the State of New Jersey – which stuck until May 1934 when the name was changed once more, to its current form.

Since those beginnings, NJCPA has grown into an organization with more than 13,000 members that it supports in a variety of ways, such as advocacy, educational resources, access to shared knowledge, and groups and committees that serve their interests – as well as holding an annual convention and expo, which returned in-person in 2022 in Atlantic City, following the pandemic.

Throughout 2023, NJCPA celebrated the milestone anniversary in a number of ways – including at its annual convention, with an installation of a “history wall” at its offices in Roseland, a golf outing, a special section in its summer issue of New Jersey CPA Magazine, a retrospective featuring the majority of the living past presidents, and an extensive online history timeline.

In late 2023, NJCPA invited NJBIZ to its Roseland office for a roundtable discussion on the organization’s history, industry challenges, areas of focus, its future and more.

That conversation included Aiysha “AJ” Johnson, CEO and executive director, who was hired earlier this year to succeed Ralph Albert Thomas following his retirement after more than 20 years leading the organization; Alan Sobel, managing principal of the New Jersey offices of CliftonLarsonAllen (CLA) and NJCPA past president (2020-21); Sarah Krom, managing partner of SKC and Co., and the youngest NJCPA president at age 35 when she served in 2018-19; and two long-time staffers – Theresa Hinton, chief operating officer and Rachael Bell, content and communications director.

Bell opened the discussion by citing the original mission formulated by the original founding members — advocating for the regulation of the profession in New Jersey, because the CPA did not exist when the organization started.

“That was their number one mission. And they succeeded,” said Bell. “Then the CPA became a thing in this state. Our name did not have ‘certified public accountant’ in it in the beginning – because there was no such thing. I think that’s a really neat backdrop to the whole thing – the power of people coming together and what they can accomplish. And that’s what this organization is still about – in my opinion.”

Bell pointed to a few things that stood out from her three-decades-plus with the organization, in terms of how NJCPA has grown and evolved during her time there. “I think we have done more and more advocacy. We have a much stronger presence in Trenton,” Bell explained. “And that was an intentional thing. A lot of what we used to do was – still had a strong presence, but it was really behind-the-scenes, and we did not really talk about it. That has been a big change – within the last 10 years.”

She also stressed how the accounting community has come together and the evolution to continue serving its members – with a small team of about just 30 staffers. “We constantly try to evolve our technology and tools to help members,” Bell said.

“I would say on a day-to-day basis, we continue to advocate for the profession,” said Johnson. “That has not changed, and it is not going to change. One of the things that sticks out in my mind is the pandemic and just knowing how the team came together to be nimble and to respond proactively to members’ needs during that time.”

Johnson echoed Bell by stressing that NJCPA is constantly evolving – praising her team’s efforts. “Always looking for opportunities to be more efficient,” she said. “I give my team a lot of credit – both when I meet with members and talk about our organization, I tell them directly as well as that I really inherited a great team. We are constantly looking at ways to just make positive improvements on behalf of our members – to improve the member experience. As Rachael said, with technology, whatever resources we can – to plan ahead and make sure that we are serving the profession.”

Johnson has talked about spending the first few months of her tenure meeting with members and stakeholders – hearing their concerns and challenges as she dives into this new role.“I’ve definitely hit the ground,” she said. “I’ve met with quite a few members. It was really interesting to see – someone pulled a list, and I basically touched every chapter, interest group, committee meeting at least once, so far. December [was] six months. Another thing in terms of hitting the ground running – connecting with our members, hearing common themes around what’s important, such as upskilling and retaining talent. All of the things that we are doing is to support that process. Not to mention, meeting with the business community and advocacy groups in support of the profession is one area – but then also making sure that we continue to have a voice in the business community.”

She said her focus has been on partnerships, strengthening relationships, continuing advocacy efforts – getting everyone on the same page and rowing in the same direction.

The theme of strengthening the talent pipeline came up repeatedly during the discussion, with the accounting profession looking for more ways to increase access and eliminate barriers to entry, such as the innovative Work for Credit Program – aimed at creating an alternative path to the 150 credits needed to be eligible for a CPA license. Two such partnerships have formed so far in the Garden State – first between PwC and Saint Peter’s University and then between Seton Hall University and Withum.

Krom noted the challenges that the industry faces in this area. “I run a firm in Morris County, so we have had challenges with hiring as everybody has – the whole profession. But there’s connections that I have made through the state society that have helped retain and bring on talent through different relationships over the years that I have built up,” she explained.

Sobel said that the problem is an old one but has now morphed into something more serious. “And I think the numbers are a little bit more dire than they have always been,” he explained. “But there has always been an issue within the accounting profession of not only attracting people but retaining them – getting them to stay within the profession. There are so many different paths with which to take. So, the Society, over its – I don’t know about 125 years, but the 30-some-odd years that I have been involved, has always been there to support the industry and the firms in attracting people to this business. We just have a unique challenge right now – probably unlike we have had in a long time because accounting graduates are way, way down.”

But Hinton pointed out that there have never been more opportunities in the profession to take a variety of career paths. “Because there’s just so many different ways you can go,” said Hinton. “People historically started in public accounting. That was kind of the path they took. And it prepares you for anything. Even if you decide not to do accounting ever again, you are a better businessperson just having come through even four years of public accounting – because you touched so many different industries. You are never going to get that experience anywhere else without job-hopping 100 times. And you get a pretty in-depth look at each of these industries, and it really can help you. It is quite the opportunity.”

Hinton’s colleagues agreed that it was a critical time to tell the story of the profession and the kinds of opportunities it offers. The anniversary provided the perfect opportunity to do just that.

“Everyone is talking about telling the story – telling positive stories about what you can do in accounting,” said Johnson. “Students who I have had an opportunity to speak to – I heard it so often within the first few months that I have been here that they may have heard one thing about accounting, but then when they actually had an opportunity to experience accounting and to go into a firm and to talk to decisionmakers, they realize that this is something I definitely want to do.”

“We have been trying to speak to the younger generations – who want to make a difference,” said Bell. “They want whatever they do for their career to make a difference. So, we’ve been working with some of our members to help share their stories.”

Regulation will be another major challenge heading into 2024. “We want to make sure that you can work in the profession and not be overregulated,” said Johnson. “We are kind of seeing what we think to be challenges in that area.”

“And keeping up with all the new things coming out from the IRS and the accounting boards and things like that,” Bell added. “That’s always been an issue. And that’s where we definitely can provide services.”

Sobel said that change is always part of the profession – but he has noticed an acceleration in that speed of change. “I am not just talking about technology,” said Sobel. “I am just talking about regulations and things like that. We are in a little bit of a pause here, which is kind of nice – because Congress is dysfunctional. Let’s see what happens in two years when everything sunsets. But the speed of change is the hardest part of everything because it doesn’t even allow people to absorb it and boom. And the Society has done a phenomenal job of keeping the changes in forefront – making sure that our membership is exposed as best as possible to what is on the horizon and getting in front of it, as opposed to reacting to it.”

The conversation continued through a number of topics – swinging back to the talent pipeline and technological challenges and opportunities, such as AI, the CPA exam, the post-pandemic period, remote work, and more. The participants then went around the table and spoke about something they are proud of that has happened or been accomplished since they have been part of NJCPA.

Johnson said she was attracted to NJCPA because of its history as a strong organization with solid membership. “But now I can personally say just how great our members and team are,” she said. “So, I am really proud of everything that has been done and what we are continuing to do – with our pipeline task force and how we come together and we plan ahead for the future as much as we can internally. These are challenging times, but I think we have a great opportunity to share our story, to continue to be involved in advocacy business efforts – to be a connector, also, throughout the state. And so, I am really excited about those opportunities.”

“I think one of the things I am most proud that we did, and it continues to become an even stronger benefit of our membership – is our online community,” said Bell, pointing to the effort that launched with a narrow focus but has evolved over the years. “As part of this community, we have one group that all members are added to – it’s called our open forum. And every single day of the year, there are messages posted – weekends, holidays, you name it.”

She added it is particularly helpful for sole practitioners and small firms that often do not have a huge network to bounce ideas off – stressing that it has been successful because people are engaged and was especially useful as a lifeline during the pandemic.

“People ask questions and members answer them,” Bell explained. “It’s great for the members, but it is also really great for us because we get to hear what the issues are out there.”

“I’ve been here for about 20 years. I’ve worked in pretty much every department in the organization,” said Hinton. “For me, the thing that I am most proud of is our volunteers. We have 13,000 members – but we have really 200 to 250 active members – really out there doing stuff every day to help move the profession forward and giving up their time and energy and resources.”

“Personally, I am most proud of being the third female president. And I think I am still the youngest in 125 years [at age 35 in 2018],” said Krom. “And I am very, very confident that somebody will beat that statistic – probably in the next 10 years, and that’s a good thing. That’s probably what I am most proud of – is seeing the younger people come up.”

Krom touted the emerging leaders rising through the ranks, saying they exhibit strong characteristics in terms of leadership and volunteering. “Talking about what happens in firms with retainage and talent, we have an amazing, talented group of volunteers and staff – of course,” said Krom. “And I don’t see that bench shrinking. I am most proud of that being so strong.”

“I joined the Society because you were supposed to join the Society. And then it became – kind of a lesson that I have learned in life,” said Sobel. “Which is that you are supposed to give back to your profession. And what I have learned is that the more I have given over the years, the more I have received in return.”

As for an accomplishment, Sobel pointed to the passage of the legislation that became the Pass-Through Business Alternative Income Tax Act, which Sobel and NJCPA played a key role in developing and drafting. BAIT was signed into law by Gov. Phil Murphy in 2020 — with Sobel and NJCPA receiving awards for their efforts.

“Saving a billion dollars for New Jersey business owners last year in federal taxes as a result of that,” Sobel explained, noting that more than 20 states have followed suit. “And it was the advocacy that Rachael spoke about – that set the stage for that and positioned us to be able to be a real thought leader in that regard and get that accomplished.”

To close out the discussion, the topic shifted to what’s next for NJCPA – areas of focus, challenges, initiatives, etc. – in 2024.

“There will continue to be a lot of activity in 2024 – I think a couple of opportunities,” said Johnson. “One, we know that pipeline is an issue. But, hopefully in 2024, we can narrow down our focus in how we prioritize our activities and our resources in order to continue to support engagement.

“And then I see our partnerships as a huge opportunity and really honing … how we partner to create more connection and outreach to the larger community, to the middle schools,” Johnson added. “We ourselves may not have all of the resources to go into middle schools because we really want to touch on the high schools and college students – and all that. But, through our partnerships we can. There’s still a lot of work to be done and we will see what comes out of the pipeline task for as well. And then we will put it all together – so that’s where I see us going in 2024. Not to mention, just support of the issues – knowing that there are these regulatory concerns and technology – those things won’t go away.”

Throughout the conversation, the participants stressed the constant growth and evolution of the organization and the strong community and culture that has been built over time. And Sobel said that progress has been made – noting that the profession used to be an old boy’s club, but women are playing a much more prominent role — pointing to the four women leaders present. He said more needs to be done, though, to attract people from minority and other underrepresented communities to the profession – pointing to the high costs and barriers of entry that often discourages people from entering, which has led to the current talent pipeline situation.

“We need to break down some of the barriers to entry to allow us to be able to attract a more diverse workforce,” said Sobel. “It is not in a good place in that regard right now, but we are working toward that.”

Johnson said that diversity needs to be a focus across all of the areas – culture, leadership and engagement. “No matter what, you have to have the conversation,” said Johnson. “And some action toward it.”

“I will say this – it’s 125 years, but our last chapter has not been written yet,” Sobel said in closing. “There is a lot of future in front of this profession.”

He said this is a very big moment for this industry to take its next step forward and tell its story as it continues to evolve amid a myriad of challenges. “It’s definitely an inflection point – for sure,” Sobel concluded.

Following that discussion, NJBIZ caught up with Dan Geltrude, founder of Nutley’s Geltrude & Co., a regular contributor on national news programs as “America’s Accountant” and who spearheaded the concept of the Work for Credit pilot program, to get his perspective about the NJCPA 125th Anniversary and the industry challenges and future.

“Obviously, a lot of things have changed over that time, but the acceleration of which things are changing and the challenges that this profession is facing now – there’s never been a time like this,” Geltrude told NJBIZ. “Let me tell you – the shortage of CPA and accountants is absolutely at crisis level. If you look at the pipeline, it is not increasing – it is thinning out, which means that the problem is going to get worse.”

But he lauded the leadership of Johnson since she has taken the helm – believing she is the right person to lead NJCPA at this critical moment and is somebody looking for ways to solve these problems.

“I think AJ is very enthusiastic – focused on meeting these challenges that the profession is facing,” said Geltrude. “I think she is right on the money.”

Geltrude added that Johnson does not have her head in sand about the reality of these challenges.

“It is just the opposite. She realizes that these challenges cannot be ignored,” Geltrude explained. “The things that the profession is facing now is an existential threat. I cannot emphasize that enough. The shortage of CPAs and the shortage of accountants is a huge problem. And she understands that – and I think she is stepping up.”