Ryan Schultz

A Big Win for the Future of Accounting and for the Next Generation of CPAs in California Governor Newsom just signed Assembly Bill 1175, modernizing how CPAs become licensed in California. Starting January 1, 2027, aspiring accountants in California will no longer need to complete the dreaded traditional 150-credit-hour requirement, a barrier that’s discouraged countless talented students from pursuing the CPA route. Instead, the new pathway emphasizes what really matters: • A bachelor’s degree with an accounting concentration • Two years of accounting experience • Passing the CPA exam As a CPA myself, I see this as a long-overdue reset for our profession. The fifth year of education has been one of the largest deterrents for entry, adding cost, debt, and delay at a time when the profession desperately needs new blood. Accounting didn’t “fall out of favor” because the work lost meaning, it fell out because the path became unnecessarily rigid and expensive, while other industries made their entry points faster and more flexible. AB 1175 recognizes that we can uphold quality without gatekeeping access. Even better, the bill strengthens mobility for out-of-state CPAs, streamlining practice reciprocity and reflecting how interconnected today’s business environment really is. And that’s how we revive the CPA pipeline not by lamenting the decline, but by evolving to meet the moment. If you’re a student, young professional, or considering a mid-career shift, drop me a note if you want to talk about what a modern accounting career looks like (especially in a transformation-oriented environment). I'm all for it. 💪 #Accounting #CPA #Finance #Leadership #TalentPipeline #FutureOfWork #California #CBA #PublicAccounting #LicensureReform #CareerDevelopment #ForgeOptima

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California’s legislature switched to "Market-Based Sourcing" with "Sales-Factor Apportionment" effective 1/1/2013. The Franchise Tax Board (FTB) has now clarified how the world's third largest tax authority will apply that law. •     If you directly or indirectly serve California customers (or the US Government), •     If you collect interest, dividends, or profits from publicly traded intangibles, •     Even if you and your business have never had physical presence in California, •     The FTB has been expecting your tax returns since the 2013 tax year. Now may be the time to quantify your California tax exposure.

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I put Claude vs ChatGPT through a very unsexy stress test this weekend: act like a junior accountant, ingest QuickBooks reports, untangle recon issues, and draft IFRS-compliant financials. My verdict: 🏆 UX + context winner: Claude Claude’s desktop workflow is a real edge for “enterprise-style” work. When the model can sit alongside the actual files, you spend less time packaging context (zipping folders, exporting, re-uploading) and more time solving the problem. It was especially good at diagnosing what was actually wrong — and why. 💪 Scale + brute-force winner: ChatGPT Once the workstream was mapped, ChatGPT was better at grinding through volume — patterns, checks, classifications, and “did we miss anything?” scanning. Reality check: ChatGPT’s output was stronger, but only after a fair amount of steering. And in the end, neither produced financials you could use — too many judgement calls and tie-outs still needed a human. Did help speed up problem identification and solution generation. Bigger takeaway: This is why I’m watching the shift toward AI-native ERPs (Rillet, Campfire, etc.) — systems designed around structured data, workflow, and auditability- and you can plug in your accounting into the LLM. Will Xero/QuickBooks catch up? They have distribution — but innovation is harder when you’re protecting a billion-dollar subscription machine. Curious: team incumbent or team startup in the AI accounting race?

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Wearing my technical accounting nerd hat today 😊 Occasionally, I see accountants book expense accruals/liabilities when I don’t believe they should be booking them, so here is my interpretation of the rules: Example: It’s Q4 2025. You’ve just signed your tax engagement letter for the 2025 tax year and your tax advisor has quoted you a fee for their work. No work will be performed by your tax advisor until Q1 2026. You are closing the books for 2025 and you book an accrual for the service fee in Q4 (to “match" the expense to the period it benefits). Seems logical and the correct thing to do, right? Well, here is the catch - Under US GAAP accrual basis accounting, expenses for services are recognized when they are incurred, which is when the services have been rendered or performed by the provider. FASB’s Concepts Statement 6 (CON 6) states that "liabilities are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events". In this example, since the past event (performing the services) has not occurred as of December 31, 2025, there is no expense to be booked and no liability to be recognized as of the balance sheet date. Perhaps a footnote disclosure for the commitment to pay if they do the work but not a booked liability. The obligation to pay for the services will be created in 2026 when the work is performed and that’s when the expense will be recognized. I know I have many seasoned CPAs and auditors in my network so do let me know please if you have a different view on this.

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If you’re still trying to scale your mid-market PE firm by adding headcount, you’re fighting a losing battle against your own margins. 🛑 In my recent conversations with mid-market leaders, the message is clear: the old playbook of "Raise more AUM → Hire more fund accountants" is dead. Mid-market firms are in a unique squeeze. You’re expected to deliver mega-fund reporting sophistication without the mega-fund army of resources. You’re under the gun to prove "operational alpha," yet your engine is still running on manual, siloed workflows. 👉 The "Manual Drag" is killing your margin. If your team is still spending 6 days every quarter manually moving data from an ERP into Excel, you have a data architecture problem, not a talent problem. 👉 The Pivot: From "Augmentation" to "Orchestration" We’ve moved past the "ChatGPT for drafting emails" phase. The conversation has shifted to Agentic AI—where AI doesn't just assist; it executes. But here is the hard truth: An AI agent is only as good as the road it travels on. Trying to deploy Agentic AI across a disconnected, manual environment is like putting a high-performance engine into a car with no steering. You’ll get speed, but you’ll also get disaster. The 2026 Roadmap: 👇 ✅ Govern Before You Automate: AI needs strict, auditable boundaries. ✅ Connect, Don't Patch: Stop building custom scripts. You need a single source of truth. ✅ Standardize to Scale: If a workflow is repetitive, it should be an automated loop, not a manual task. 👉 Where does a "System of Work" fit in? This is why I’m seeing forward-thinking firms standardize on platforms like Workiva. It isn't just a reporting tool; it's the governed "system of work" that provides the data lineage agents actually require to operate. By centralizing data into one audit-ready platform, it creates the reliable environment where AI agents can deliver results you can trust. If you aren't building the "road" for your AI today, you’ll be playing catch-up when your competitors are running at 5x your operational efficiency. Is your firm building the governance layer for agents, or are you still trying to force-fit AI into your spreadsheets? Let’s discuss below. 👇 👀 Steven Schwarz, CPA, CMA, Nigel Bunbury, Jonathan M. Balkin, Henry Sowell, Paul Sanna. Tarun Singh #PrivateEquity #OperationalAlpha #DigitalTransformation #DataGovernance #AgenticAI

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Debt Covenants Rarely Break Overnight. Most covenant breaches do not happen suddenly. They happen slowly. The ratios drift. Working capital stretches. Margins compress slightly. Nothing dramatic appears in the P&L. But the covenant cushion begins to narrow. Many companies treat covenant compliance as a reporting exercise. A monthly report gets prepared. The ratios get calculated. Everyone confirms the company is still compliant. But covenant compliance is not a reporting activity. It is an operating discipline. Earlier in my career I was Director of Treasury at a student lending platform originating roughly $800M annually with about $1.1B in credit facilities. I modeled our covenant ratios six months forward using our current portfolio and performance trends. The result was uncomfortable. Nothing looked alarming in the current month. But the trajectory suggested we would be close to breaching a covenant if nothing changed. I worked with the Chief Credit Officer and the collections team to strengthen recovery efforts. The improvement did not need to be dramatic. Even modest changes in collections moved the ratios back into a comfortable zone. That experience stayed with me. Covenants rarely fail because of one bad quarter. They fail because organizations treat them as metrics to observe rather than constraints to manage. By the time the monthly report shows a problem, optionality has already begun shrinking. The companies that manage leverage well do something different. They manage the trajectory of the ratios, not just the ratios themselves. Because covenant pressure rarely appears overnight. It accumulates quietly. And once optionality disappears, it is much harder to recover. Most executives who have navigated a covenant scare recognize this pattern immediately.

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How can #Entertainment companies maximize #Tax savings? From navigating revenue recognition to structuring M&A deals, tax planning plays a critical role in financial health. GHJ Corporate Tax Practice Leader Nisha Golcha and GHJ Corporate Tax Expert Miso Moon outline key tax strategies that can help entertainment companies reduce liabilities, leverage incentives and optimize financial planning. Read more for insights on staying ahead in an evolving tax landscape. https://bit.ly/4bRNH2s #YourHomeTeamAdvantage

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Most PFIC mistakes don’t come from bad intent - they come from bad advice. Hiring a CPA is the right move - but only if they understand PFIC rules, elections, and Form 8621 compliance. Many don’t. This week’s post covers how to work effectively with a tax professional on PFIC issues: - What to prepare before your first meeting - What a qualified PFIC CPA will (and won’t) do - Red flags that someone is out of their depth If you’re working with a tax pro — or trying to choose one — this guide can save you time, money, and painful mistakes. Feel free to follow along and share this with anyone who might find it helpful. https://lnkd.in/gavUetwC

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Tax Managers "Know Your Worth" in 2025 Back in 2015, the average Tax Manager in the Bay Area earned around $125K–$150K. Fast forward 10 years → Adjust for inflation + Bay Area cost of living increases, and that same role should now command $240K+ to maintain the same standard of living. Managing clients, partners, teams, and projects, while meeting deadlines is not easy. If you’re a Tax Manager in the Bay Area, you should know your bare minimum and be confident in asking for it. The math says $200K is the floor, not the ceiling in 2025. Don’t sell yourself short for $160K or $175K. At least ask for $200K or above, if not, start your own firm. #TaxManagers #Salary #KnowYourWorth #BayArea #TaxManager #SeniorTaxManager #PublicAccounting #AccountingCareers #TaxStrategy #Leadership #CPA #TaxProfessionals #Tax #PublicAccounting

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Hiring a Tax Consultant? Don’t Just Look at the Résumé When tax teams bring in consultants, it’s often under pressure—tight deadlines, complex filings, or staff bandwidth stretched thin. But here’s the truth: the most successful engagements aren’t just about technical expertise. Here’s what great (experienced) tax consultants bring to the table—beyond the bullet points on their resume: 🔍 Context Awareness – They are accustomed to quickly learning new systems, team dynamic, and project goals. 🧠 Critical Thinking – They don't just complete a task—they understand how it fits into your overall strategy. They can offer suggestions/solutions your team may never have considered. 💡 Resourcefulness – When things get unclear (and they often do), they find answers without handholding. 🤝 Team Mentality – They show up as partners, not placeholders. The right consultant doesn’t just "fill a gap"—they add real value. If you’ve worked with a consultant who went above and beyond, I’d love to hear what stood out most to you. #TaxLeadership #ConsultingSuccess #TaxConsultants #InterimSupport #TaxHiring #FinanceLeadership #AccountingStrategy #RecruitmentInsights

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Raising capital, keeping up with hiring, overseeing growth initiatives and doing all of that while getting this note from your CPA: "Hey you asked us to review the tax implications of your Series B secondary and it looks like you won't be able to claim QSBS because your sale happened before 5 years. So taxes on that will be $1.05M." Brutal day. Too much going on. Founders are the world's premier capital allocators, and they should have pathways to keep their money moving toward new ventures and new ideas. QSBS rollovers exist to provide a pathway to extend QSBS, and our team makes that process 100% seamless - potentially saving that $1.05M tax bill.

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Last week, I had the opportunity to speak about the impact of Anthropic's Claude CoWork feature for Finance leaders in the Elevation Capital portfolio companies. The Zoom session had 100 registrations, 85%+ attendence and almost 95% sit-through rate where attendees sat through the whole session and asked questions. The demand for AI in Finance is very very high! VC investors are incredibly conservative about what they show their portfolio and what they don't, for good reason, they have millions of dollars on the line riding on the success of these start-ups. In this context, I want to take a moment to appreciate the forward thinking nature of Elevation's team to have folks like Vartika Bansal, Harsh Agrawal and Pankaj Ghai do sessions like these for their portfolio. It will help make both Elevation and the portfolio companies AI-native. In this post Vartika Bansal summarises the key take-aways from the session. But if you are a Finance leader still looking at YouTube, LinkedIn and other places and thinking, I will use AI when I have the time, it might be too late. The time to start is now, install it, pay for it and get to work. It is now or never, if you have questions or get stuck feel free to DM me!

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Solid reasoning for hiring a VP Finance / FD, not a CFO if you are a Series A or B startup founder or investor...👇 At Series A or B, your biggest finance challenges are typically: ✅Building forecasting discipline. ✅Extending runway. ✅Tightening cash management. ✅Installing reporting infrastructure. ✅Preparing for the next raise. ✅Nailing automation and AI. ✅Getting data clean to support decision making. You don’t usually need a “capital markets” CFO yet. You need someone who can build the engine. 🏗️ A strong VP Finance / FD will: ✅Implement controls and systems. ✅Professionalise FP&A. ✅Manage investor reporting. ✅Support the CEO through fundraising. ✅Get into the weeds and fix what’s messy. ✅Drive decision-support. Hiring a big-brand CFO too early often creates misalignment: 👉Overqualified for the stage. 👉Too strategic, not operational enough. 👉Expensive relative to runway. 👉Potential frustration on both sides. That said, there are exceptions... You may need a CFO at Series A or B if: ✅You’re raising £50m+ rounds. ✅You’re operating in a capital-intensive model. ✅You have complex multi-entity / international structures. ✅You’re preparing for a rapid Series C or IPO trajectory. ✅The board requires public-company professionalism. The real question isn’t title...It’s: What problem are you actually solving for in the next 12-18 months? 😉 In early-stage companies, sequencing finance leadership correctly can save millions in dilution and years of organisational pain. Get the level right and the title becomes secondary. Curious how others have approached this at Series A or B? 🤔

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To ACS 606 or not to ACS 606, that is the question. Okay that was dumb, but most SaaS businesses could be considered equally dumb to wait to implement ASC 606. Tons of finance leaders might disagree, but this is a HUGE mistake. Those finance leaders also probably haven't worked at more than a handful of companies through both early stages and growth I've seen literally hundreds of businesses, that waited until AFTER their major growth spurt to implement, and it's not pretty. The impact of adopting the ASC 606 revenue recognition standard on software and SaaS entities has been greater than that on many other industry groups. Here's what waiting costs you when you're too late: Your finance team drowns in manual work. Data entry instead of strategy. Restatements, compliance issues, or poor business decisions. Audit nightmares pile up. If your policy isn't documented or consistently applied, you're likely to face audit findings or restatements. Investors start asking hard questions. Messy books = control problems. The truth nobody talks about: Setting up ASC 606 early is actually easier early on. Simple contracts. Clean data. No legacy mess to untangle. Why would you wait? Adhering to ASC 606 is nearly impossible without the right software. But with the right setup, it runs itself. Do it now. While your business is still simple. Before growth makes everything complicated. Before you're explaining revenue restatements to your board. #revrec #ASC606 #earlycompliance #growth

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IPA: Blueprint CFO Joins GHJ to Expand Strategic Client Support: Los Angeles-based IPA 100 firm GHJ (FY24 net revenue of 63.67 million) has announced that Blueprint CFO, a fractional CFO services firm, joined the firm effective Nov. 1. The combination expands GHJ’s ability to support clients with strategic financial guidance across all stages of growth.  Founded by Jim Downes, Blueprint CFO provides fractional CFO services to growing businesses seeking financial […] The post Blueprint CFO Joins GHJ to Expand Strategic Client Support appeared first on Inside Public Accounting. http://dlvr.it/TQs6hz #tax #CPAfirm #accountant #accounting #CPA

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IPA: Blueprint CFO Joins GHJ to Expand Strategic Client Support: Los Angeles-based IPA 100 firm GHJ (FY24 net revenue of 63.67 million) has announced that Blueprint CFO, a fractional CFO services firm, joined the firm effective Nov. 1. The combination expands GHJ’s ability to support clients with strategic financial guidance across all stages of growth.  Founded by Jim Downes, Blueprint CFO provides fractional CFO services to growing businesses seeking financial […] The post Blueprint CFO Joins GHJ to Expand Strategic Client Support appeared first on Inside Public Accounting. http://dlvr.it/TQs6j0 #tax #accounting #CPAfirm #accountant #CPA

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IPA: Blueprint CFO Joins GHJ to Expand Strategic Client Support: Los Angeles-based IPA 100 firm GHJ (FY24 net revenue of 63.67 million) has announced that Blueprint CFO, a fractional CFO services firm, joined the firm effective Nov. 1. The combination expands GHJ’s ability to support clients with strategic financial guidance across all stages of growth.  Founded by Jim Downes, Blueprint CFO provides fractional CFO services to growing businesses seeking financial […] The post Blueprint CFO Joins GHJ to Expand Strategic Client Support appeared first on Inside Public Accounting. http://dlvr.it/TQs6j1 #accounting #CPAfirm #CPA #tax #accountant

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In an ideal audit scenario, financials come ready to review—clean, compliant, and perfectly formatted. But for most CA firms handling SMB clients, the reality is days spent inside massive Excel workbooks, trying to group ledgers, align previous-year figures, compile asset schedules, and patch together disclosures. That’s where AssureAI steps in—automating up to 95% of this grunt work. ✅ Auto-maps thousands of ledger entries in minutes ✅ Aligns prior-year figures with built-in carry-forward logic ✅ Generates fixed asset and ageing schedules in one click ✅ Produces fully formatted, disclosure-ready reports ✅ Reflects the latest ICAI and MCA mandates, always By collapsing what used to take 1–3 days into 10–15 minutes, AssureAI empowers CA firms to spend less time formatting and more time delivering high-value assurance. 📘 In our latest blog, we break down the exact Excel pain points faced by CA firms—and how AssureAI solves them, one automation at a time. 🔗 https://lnkd.in/gwYKY9Cu #CharteredAccountants #AuditAutomation #FinancialStatements #ExcelFatigue #AssureAI #CAtools #Fintech #AccountingInnovation #DigitalAudit

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