00;00;00;01 - 00;00;20;18 Speaker 1 Welcome to the inaugural episode of the Accounting for California podcast. I'm so glad you're joining us. My name is David Hemphill. I'm an information and planning analyst here at the California Board of Accountancy, and I will be your host for the series. I am delighted to be joined for this very first episode by the new CBA president, Michael Savoy. 00;00;20;28 - 00;00;23;03 Speaker 1 Mr. Savoy, thank you so much for joining me. 00;00;23;10 - 00;00;26;18 Speaker 2 Thank you. It's a pleasure. And I look forward to it. 00;00;26;21 - 00;00;44;07 Speaker 1 Okay. Well, so you were recently elected once again as CBC president, and now you've held this role twice before in the past in 2014 and in 2018. And now you'll be back as we move into 2022. So what made you wish to run for president a third time? 00;00;44;16 - 00;01;10;22 Speaker 2 Firstly, no one has ever done it before, so I found that to be quite the novel. But secondly, I just love leading this great institution and lending my experience and my expertize to accomplish the goals of the CBA. While always keeping in mind the public protection of the consumer is at the forefront of all the actions that we do with the CBA. 00;01;11;01 - 00;01;27;22 Speaker 1 That's right. We'll talk a little bit about what the CBA plans to get into in 2022. But let's talk a little more about you first, because you've served on a number of boards in addition to the CBA during your career. Why have you found it so valuable serving on these boards? 00;01;28;04 - 00;01;51;23 Speaker 2 Well, you know, I've been blessed in my 48 years in the accounting profession. And for me, it's it's just an opportunity to give back to the profession that has been really, really good to me over the years. And the people you meet along the way is just amazing. So it's really an opportunity for me just to give back because I have been very blessed. 00;01;52;06 - 00;01;58;02 Speaker 1 That's great. What is maybe one of the more interesting boards that you've been a part of over the years? 00;01;58;14 - 00;02;35;02 Speaker 2 I couldn't conduct this interview without saying that probably the most rewarding board seat is obviously the CBA. But as far as interesting, I'd have to say that serving as the chairman of the Americas region and also being on the worldwide board of the Cure International, which is a group of 175 firms in 300 cities, and 75 countries was the most interesting because it allowed me to travel to well over 15 countries. 00;02;35;13 - 00;02;47;16 Speaker 2 And I've met folks from all over the globe and have developed some great friendships. So the CBA has given me the most rewarding, but that gave me the most opportunity to travel the world. 00;02;47;22 - 00;02;51;26 Speaker 1 Accounting definitely can take you places. So take it from President Savoy. 00;02;52;00 - 00;02;52;19 Speaker 2 Thank you. 00;02;53;03 - 00;02;59;00 Speaker 1 Do you care to mention maybe a few of those countries in particular that you had a memorable experience at? Maybe? 00;02;59;03 - 00;03;38;06 Speaker 2 Well, I mean, certainly Australia was one of the nicest places I've been to, although when you go there you mostly in board meetings. But I mean just Australia was great because I've been to China, Hong Kong, certainly the UK. I spent some time in Berlin, Germany. Prague was probably the most exciting city. And having gone there and to see it in the middle of Europe and people ask, you know, why was that not affected during World War Two, like most of the other countries and cities that I later found out that Hitler, that was his favorite city in all the world. 00;03;38;20 - 00;03;53;16 Speaker 2 So obviously he didn't blow that one up. But France was great. Spain, Italy, I mean, it just so many. And the most exciting was, I think, a trip to Costa Rica where I got to do a zip line. So that was very exciting. 00;03;53;18 - 00;04;01;23 Speaker 1 Oh, great. Now, fascinate. Well, sounds like traveling is a big thing you enjoy. Anything else you enjoy doing when you're not focused on the profession? 00;04;02;01 - 00;04;29;06 Speaker 2 My passion these days, and for the last many years has been golf, you know, and I try to play as often as I possibly can. I've traveled all over the United States and also in other countries playing golf, travel with some great friends. And I've also played some of the greatest golf courses around, including the seven U.S. Open Golf courses and many others in which they've held PGA Tour events. 00;04;29;13 - 00;04;35;18 Speaker 1 Wow. I'm sure there's a joke in there somewhere about accountants playing golf, but we can let the listeners fill those in themselves. 00;04;35;19 - 00;04;38;13 Speaker 2 Yeah, well, we'll leave that for the golf course. 00;04;38;21 - 00;04;46;29 Speaker 1 So I hear that accounting kind of runs in your family, your kids got the accounting bug, too. Tell me about that. 00;04;47;08 - 00;05;19;03 Speaker 2 Yeah, I mean, my two daughters, they're both auditors. One worked for KPMG and the other one works for Grant Thornton. And along the way, many people ask me, what did I do to get them to go into the same business? And to be perfectly truthful, I actually did nothing because if I had put them or steered them in that direction, I have a feeling that along the way they would have rejected my, you know, trying to influence them on their careers. 00;05;19;04 - 00;05;41;24 Speaker 2 So I've done nothing. I believe that they enjoyed the lifestyle, all the homes we've lived in, the trips we've taken, and probably at some point said, you know, this is not a bad life, so maybe we'll should be an accountant as well. So I've been blessed. You know, my kids are very hard workers. And unfortunately, the last two years they both worked from home. 00;05;41;27 - 00;05;51;03 Speaker 2 So it's hard to understand, but I don't know how you do audits from home. But I guess the accounting profession has changed a lot in the last few years. 00;05;51;07 - 00;06;03;28 Speaker 1 Yeah, it's certainly learned to do business a different way for many people out there. So what do you feel as we're getting back to to business a little bit now? What is the most important role of the CBA, in your opinion? 00;06;04;08 - 00;06;34;07 Speaker 2 What I believe is the most important role and fortunately, unfortunately, what I enjoy the most is the role of the CPA and its discipline and enforcement. I feel that's really important because California has well over 113,000 CPAs and not all of them perform and act in the most professional manner. So it's up to the CPA to deter bad actors from performing at either subpar or dangerous levels. 00;06;34;19 - 00;06;39;22 Speaker 2 But again, always keeping in mind that consumer protection is our main objective. 00;06;40;05 - 00;07;04;07 Speaker 1 Absolutely right. And there is a new way that our stakeholders can go to the CBA website and report unlicensed activity. That's something new that was on for for 2021. So another way that our listeners can help if they're spotting things like that going on out there. Very good. What are some of the priorities, President Savoy, that you would like to see the CBA achieve during 2022? 00;07;04;18 - 00;07;32;17 Speaker 2 Well, I think the number one for me is preparing for another successful sunset review every few years. You know, we come before the legislature in having to justify our existence. I think we've done very well over the years in providing information to the legislature as to why we exist. So I think setting us up for another successful sunset review is probably the foremost of this year's activity. 00;07;33;01 - 00;08;02;27 Speaker 2 And another thing that I'm involved in is California continues to be one of few states that offers to license tracks, which is the track and the track. We're going to be reviewing whether we will continue to offer two tracks and why we think it will be important. And we'll be developing a task force that will be announced shortly as to who is on that task force. 00;08;03;09 - 00;08;27;05 Speaker 2 And they will be all looking forward to giving us the information as to should we continue this or should we follow the course of many other states that only have one track? So that's pretty much my focus this year. As you know, things change on a daily basis, so we'll be ready to respond to any other things that come aboard. 00;08;27;05 - 00;08;32;18 Speaker 2 But those are two of the more important things that I have prioritized during 2022. 00;08;32;24 - 00;08;52;20 Speaker 1 Very good. Yeah. So that would be the license with a test authority versus just the general experience license. It'll be interesting to see what comes of those taskforce findings. Do you see California and the CBA specifically as being a leader when it comes to how state boards regulate the accounting profession in their state? 00;08;53;00 - 00;09;23;10 Speaker 2 Absolutely. As I mentioned, California legislated for 113,000 CPAs, which is the largest population of CPAs within all 55 jurisdictions. So they constantly look at us as the trendsetters within the profession. And the CPA is recognized as one of the most preeminent boards within those 55 jurisdictions and for good reason. We have a great board. We have good people, we have good leaders. 00;09;23;19 - 00;09;29;21 Speaker 2 So we generally are the trendsetters and everybody looks to us as the way to go within our profession. 00;09;29;26 - 00;09;51;10 Speaker 1 That's right. And you have been around as the longest tenured member of the CBA. You have to go actually three governor's back for your original appointment, which was in December of 2010 by then Governor Arnold Schwarzenegger. What would you say? And you've mentioned how giving back is so important to you in serving on the boards. You've had in your career. 00;09;51;17 - 00;09;59;06 Speaker 1 What has been, do you think, the most rewarding part of being with the CBA for that long is it's now 11 years and still moving forward? 00;09;59;12 - 00;10;22;05 Speaker 2 Yeah, I mean, I have to say, the people I've certainly had the opportunity to meet and work with some of the brightest and smartest folks from all walks of life. I've made and developed long, lifelong friendships during my almost 12 years on the board, and it doesn't feel like it's that long. But, you know, I enjoy it so much, though. 00;10;22;05 - 00;10;42;01 Speaker 2 It's just part of my makeup to continue to be on the board as long as I can. And, you know, I keep setting records. Three time president. I could be on the board for 13 years, which is also unprecedented. So I just enjoy it. It's been a pleasure and an honor. So what else can I say? 00;10;42;13 - 00;11;07;04 Speaker 1 You could be the the Cal Ripken of the CBA, if you will, just keeps going. I love it. Well, the CBA does currently have two openings on the board itself, and there are also vacancies on some of its advisory committees. I know there's many individuals out there that I'm sure have thought about volunteering or are looking for ways to make a positive impact on the accounting profession. 00;11;07;15 - 00;11;10;10 Speaker 1 What would you say to those people maybe considering? 00;11;10;14 - 00;11;34;24 Speaker 2 I mean, I would say that this is certainly a golden opportunity to make a difference and be part of shaping the accounting profession for not only now, but in the future. And if you want to give back to this great profession, just simply reach out, volunteer your services, and you'll be placed in the proper board or advisory position. 00;11;34;29 - 00;11;43;14 Speaker 2 There's always room for good, bright, energetic folks, and we just seek those to become part of our world community. 00;11;43;18 - 00;12;07;19 Speaker 1 Right. And you can go to the CBA website, click on the opportunities to serve link and there's a lot more specific details there. If you are interested, we definitely encourage you to apply for those appointments. So let's look at let's talk about the future of the accounting profession a little bit. The CBA does a lot of outreach into colleges and universities and exciting to see those students kind of getting started. 00;12;07;19 - 00;12;17;19 Speaker 1 And with so many questions along their path, what would you say to students that are contemplating what major they should choose in college? Why would you suggest accounting? 00;12;17;28 - 00;12;46;12 Speaker 2 I feel that accounting is probably the fundamental basis for all businesses, and understanding the numbers leads to many other opportunities both within and outside our profession. It's also a great springboard for other opportunities within accounting. Should you wish to go into private industry? And last but not least, if you're a decent student, you're almost guaranteed a job in the accounting profession. 00;12;46;24 - 00;12;53;19 Speaker 2 There is such a shortage today that good, bright students will definitely have a future if they choose accounting. 00;12;53;23 - 00;13;05;26 Speaker 1 Well, that's great. I know that's music to the ears of many students. They like that guaranteed employment thing right there. When? At what point in your life when did you know you wanted to go into accounting and become a CPA? 00;13;06;03 - 00;13;31;25 Speaker 2 Well, you know, it certainly brings back memories of many years ago, but I was always really, really good in all my math classes. And so my parents would always tell me, you know, you'd probably make a good accountant. Well, not necessarily knowing what accounting was back then. I had the opportunity in my senior year of high school to create what they called an accelerated bookkeeping slash accounting course. 00;13;31;29 - 00;13;39;28 Speaker 2 And at that point, I was hooked. I achieved perfect scores in all my tests. And as I look back, the rest is history at this point. 00;13;40;04 - 00;14;02;29 Speaker 1 Yeah. And who knew that? Your parents little prompt there you now are president of the California Board of Accountancy. And that is a major accomplishment. Absolutely. And something that you had mentioned about being so good at math now, I suppose with, you know, all the computers there to help, you don't necessarily need to be amazing at math anymore to go into accounting. 00;14;02;29 - 00;14;04;04 Speaker 1 Is that true or not true? 00;14;04;14 - 00;14;27;13 Speaker 2 Yeah. I mean, it's true with calculators, computers, Excel spreadsheets. I mean, other than having a fundamental knowledge, the computers do it all for you. So but back then, I don't know, 50 years ago, more sure it was all done manually. So you really had to have a knack for the numbers at that time of the accounting profession? 00;14;27;17 - 00;14;44;24 Speaker 1 Yeah, computers certainly have taken so many professions in new directions. So you mentioned about how you do feel there is so much job opportunity out there. So what? What are the job prospects and salaries looking like for recent accounting graduates? Would you say? 00;14;45;03 - 00;15;15;25 Speaker 2 Well, I mean, again, because there is such a large shortage of good accountants in our profession, it's a great place to start your career and salaries are probably some of the highest starting salaries coming straight out of school, not having a master's or a doctorate or doing a law school for an extra four years and the ability to earn more and move quickly within a company is totally dictated by your own abilities. 00;15;16;02 - 00;15;34;27 Speaker 2 So if you're good at what you do, you'll make quite a bit of money and you'll just keep moving your career forward. So I think it's it's a wonderful opportunity. It's served me well. And I would insist that if accounting is what you would like to do, you'll be very successful at doing it. 00;15;35;07 - 00;15;59;17 Speaker 1 I love that. That's excellent news. Now, something interesting that's coming within the next couple of years or so, the entire CPA licensure model is evolving to be more technology based with a core knowledge and then an emphasis on a specific discipline within the accounting field. It's called the CPA Evolution. So how do you feel this new model better equips the future CPA? 00;16;00;03 - 00;16;29;21 Speaker 2 You know, over the last several years, the accounting profession has followed most businesses in the technology is playing a much, much greater part in the daily work environment. So to understand and deal with this change, the accounting profession is developing new standards and disciplines to better equip the future model of what a CPA should be. And it just goes hand in hand with all the other businesses, with technology is just what drives everything. 00;16;30;03 - 00;16;41;16 Speaker 2 So the fact that the accounting profession and certainly CPAs offer in other disciplines to follow your career choice is just keeping up with the times right now. 00;16;41;29 - 00;16;52;21 Speaker 1 That's right. So let's finish off with an interesting question. Give some advice again. What's something you wish that you knew in your early days of being a CPA? 00;16;53;04 - 00;17;16;11 Speaker 2 Well, being good accounting generally has nothing to do with your ability to grow and move up within an organization. The ability to excel and be a good leader is as important as the debit and credit. You learn early on that there is room for people to sit at their chairs and be technical gurus, or as they used to call them, nerds. 00;17;16;21 - 00;17;38;04 Speaker 2 But the ability to get out there in public, to be able to sell yourself. And so what you're doing is as important. I wish I had known that early on, but I learned it a little bit later and I was quite successful at it. But in school they never teach you how to sell. They teach you how to do your debit and credit crunch. 00;17;39;06 - 00;17;47;05 Speaker 2 I wish I knew it earlier, but you know, I took to it like a fish to water. And I was quite successful at doing it. So I'm very happy about that. 00;17;47;14 - 00;18;11;14 Speaker 1 And definitely all about those relationships. Well, thank you so much, President Savoy, for joining us here on this first ever podcast with the CBA. We wish you the best of luck as you are starting your third term as CBA president. We encourage everyone to follow the CBA on social media to find out how a lot of that agenda and everything that the CBA will be accomplishing in 2022. 00;18;11;15 - 00;18;23;26 Speaker 1 Some exciting advancements that are coming down the pike as well. Facebook, Twitter, LinkedIn, you can find us there at CBA. News again, we appreciate it. And thank you for being a part of this president's Savoy. 00;18;24;04 - 00;18;31;07 Speaker 2 Thank you, David. I really appreciate the opportunity to get the word out to anybody interested in being a CPA. 00;18;31;20 - 00;18;41;02 Speaker 1 Thanks again for listening to the very first episode of our Accounting for California podcast. Be listening for episode two coming in the first months of 2022.