Meredith Smith: Alicia, thank you so much for your time today and joining us on the podcast. It's great to have you here.
Alicia Galinas: It's great to be here. Thanks for having me.
Meredith Smith: We always like to start our episodes with a little bit of background. Can you share with us your professional journey and what led you to transition from being a practitioner to leading the COCPA?
Alicia Galinas: Absolutely. I love telling my personal story and hearing stories about CPAs because no two stories are the same, which is what I really love about the accounting profession. My story probably started earlier than most, at the age of nine. I was with my sister, who was in the job market. Back then, we used classified ads in newspapers to find jobs. I imagine most students today wouldn’t even think to open a newspaper to find a job.
Meredith Smith: They’re probably just scrolling online now.
Alicia Galinas: Exactly. My sister was an accounts payable clerk looking for an accounting job. She had me circle every job that had the word accounting in it. Accounting was at the top of the classified ads, so I didn’t have to go very deep into the paper. As I circled the ads, I read about the different accounting roles, like looking at invoices, doing journal entries, and producing financial statements. I found it really interesting because, from a young age, I knew I wanted to do something with money. I saw that money mattered and could help people get out of tough situations. I realized that accounting was about helping people and dealing with money.
When I got to high school, I wanted to study accounting, but there wasn’t an accounting course. So, I asked the business teacher to create one for me, and she did. That was the beginning of my professional journey. I went to the University of Denver to study accounting, knowing they had a great program. I completed my master’s and landed my first job in the Big Four as an auditor at Ernst and Young. The experiences I gained in public accounting were phenomenal. I was there for nine years and made it to a senior manager role in the audit practice in Denver.
At that point, I began questioning the next step in my career. The next step was partner, and I wondered if that was what I really wanted. I did a lot of soul-searching and realized that whatever I did, I wanted to turn my passions into my paycheck. I wanted to advocate for other people and leave my communities better than I found them. This led me to believe that I could make the biggest impact not within an accounting firm, but for accounting firms, nonprofits, and other realms.
I changed my career path, stopped accounting, and got my coaching certification. I knew coaching would be an essential part of my work, enabling me to coach businesses, executives, and young people. I started my own consulting business, worked in nonprofit as an assistant controller, and did consulting. Throughout this time, I was a member of the Colorado Society of CPAs, which I had joined as a college student. I knew the value of being involved in such an organization.
When the opportunity came up to serve as the Chief Financial Officer of the Colorado Society of CPAs, I knew it was the perfect way to turn my passion into my paycheck. I loved that role, and it eventually led to the opportunity to step into the CEO role. Now, I don’t do daily accounting, but I think about accounting and the professionals in the field every day. I love being able to be their advocate.
Judy Vorndran: Wow, I did not know that about you. It’s interesting that you did coaching because it’s become a significant part of my professional career as well. Coaching is still a relatively novel concept, and it has made a big difference for me.
Alicia Galinas: It’s critical because the workforce has changed in how people grow and develop. Coaching is about meeting people where they are, helping them take their next step in a personalized way. This coaching mindset is essential.
Judy Vorndran: Exactly. In big firms, the traditional triangular model often creates a competitive environment rather than a collaborative one. Organizations need to be flatter and find the right roles for the right people. Not everyone needs to be a partner, and there are different ways to contribute.
Alicia Galinas: There’s a big shift in the profession now. We're moving away from the traditional triangle model to a more pentagon-like structure. Technology and outsourcing are changing the entry-level roles, and we need to elevate new professionals to work in the middle management roles quicker. We also need a broader range of expertise at the top, so partnerships have to be more diverse and collaborative. This creates a wider middle and narrows the entry level, expediting learning and development.
Judy Vorndran: Exactly. High attrition rates in big firms show that the traditional model isn’t sustainable. We need to retain institutional knowledge and create better career progression paths. CPAs have a wide range of opportunities if they understand business and finance.
Meredith Smith: Speaking of the profession, we’re seeing fewer people entering accounting. What are some of the challenges you’re discussing within the Colorado Society to attract more young people to the profession?
Alicia Galinas: It's been a hot topic, especially post-COVID. The AICPA created the National Pipeline Advisory Group to address these issues, engaging various stakeholders, including state societies and members. We need to understand why fewer young people are entering the profession and find ways to attract them. While I don’t have all the answers, it's clear we need to adapt to the changing landscape and show the value and opportunities within the accounting profession.
We really have to think about the stories we're making. The story we are making today is the story we have to sell to other people. We have to look at ourselves and ask, "Am I creating a story that is worth living?" For me, for somebody else. And then am I saying that story to somebody else? Obviously, there's a return-on-investment equation to all of this.
Salaries in accounting have risen about 16% over the last six years, which is great. On the other hand, the consumer price index far exceeded that, so accountants in general have lost earnings power over the last six years. Fields like computer information technology, marketing, and mathematics have increased at a higher pace.
Alicia Galinas: When I'm sitting there as a college grad thinking, "Do I want to become a marketing major with no regulation, a higher paid salary, and only four years of education?" The return on investment looks much higher for some of these other business degrees than in accounting, where I need 150 hours of education, pass a rigorous exam.
I have to get accounting experience under a certified CPA. Then, I'm only going to make half of what some of my other grads make. So, really, we have to think about the value of the CPA. The marketplace demands professionalism and a high level of knowledge and expertise.
We need to make people recognize the monetary value of that so we can pay people accordingly. We also haven't been great at selling our value, offering not just great compliance but strategic cost savings over the long haul. That’s investment businesses need to make in these services, whether I’m internal or an external consultant. They need to value the role that accounting plays in their business.
From a marketing standpoint, selling our services helps us address the HR issue of paying people equivalent to or more than other professions. If the demand isn't there, we need to reevaluate and ask if the barrier to entry is too high. Are we expecting too much in terms of education, experience, and the exam? If the marketplace doesn’t need that level, then maybe we don’t need those kinds of standards. However, I would argue they do expect it because we sell trust, not just numbers, and trust comes at a price.
Judy Vorndran: Another concern is the offshoring of labor to cut costs. The cost differential is significant, and I’m not a fan of that. I'm not anti-immigrant or anti-foreigner, but I’m pro-American in terms of paying the true cost of things. Everyone tries to reduce compliance costs by hiring cheaper labor in other countries, but if people understood the true costs, we would have different laws to make compliance easier.
This is why I'm on this task force—to highlight how much more difficult Colorado state filings are compared to other states. It’s 71 times more expensive to be in compliance in Colorado than in any other state. We need to rethink that because it’s a voluntary system of filing. It doesn’t need to be so difficult.
Alicia Galinas: People underestimate the role accounting professionals can play in addressing systemic issues in society. We need to be involved in conversations before laws get too far down the road, where we end up just complying without having had any input. At the Colorado Society of CPAs, my key role is to ensure CPAs are in rooms where these conversations are happening.
We need to avoid the problems we're trying to fix now with the sales and use tax simplification processes. It’s about being stakeholders in those places. We could complain about regulations or do something about it. It takes time, but we can get it done. Education and awareness are crucial. Many business owners don’t understand basic concepts like nexus, which should be common knowledge.
Alicia Galinas: As a CPA, I knew enough about tax to be dangerous, but not a lot. Moving to a company and helping them develop their accounting systems, I didn’t even understand sales tax initially. The government asks businesses to understand and comply with a lot just to give them revenue. Even as a CPA, I didn’t understand it fully. It's a challenge, and I’ve learned more about tax than I ever thought I would because it constantly changes. Financial statement principles and audit regulations are under scrutiny and change, but not at the same pace as tax.
Meredith Smith: For those who may not be familiar, can you explain the purpose and mission of the Colorado Society of CPAs?
Alicia Galinas: Absolutely. The Colorado Society of CPAs is the professional association supporting accounting professionals in Colorado. Our core is certified public accountants, but we support the entire accounting profession. We offer support through their professional journey in five areas: career development, professional connections, valuable discounts and benefits, lifelong learning, and advocacy.
We promise to support our members throughout their careers. Sometimes professionals rely more heavily on one area over another, and as their career shifts, they may need different support. We also serve the whole person, not just their professional side. We offer opportunities for personal growth and connections, like our new CME series that includes meditation practice. It’s been great to see how we help individuals thrive personally and professionally.
Judy Vorndran: That's funny you say that. The American Bar Association has noticed this problem as well. As a CPA and an attorney, I went to a conference in Vail about that. It was interesting because they mentioned people are struggling in law due to the stress. There's rarely an easy answer. Being a CPA, you have debit or credit, but with lawyers, no one calls if the answer is clear. This uncertainty causes stress, leading some to leave the profession. CEOs often pressurize accountants to make the books look a certain way, adding to the stress. There's immense pressure on accounting teams in publicly held companies.
Alicia Galinas: Right, so the society is primarily membership-based. Our members pay to join and in return, they get access to benefits and a voice in our positions on various issues. Many of our members are between 40 and 70, experienced and established in their careers. They understand the importance of a support system and networking. One of our challenges is engaging the 20 to 40 age group. They aren’t necessarily at the peak of their careers yet and might not see the value in networking or being part of a professional organization. We need to help them understand the importance of a network beyond just their professional LinkedIn page.
Judy Vorndran: Right, it's the soft skills that are missing. You can learn a task and get good at it, but being an accountant involves much more. It's about understanding business operations, advising on management, and consulting on financial decisions. It's a fascinating profession. The numbers and financials I've seen in my career are astounding. It's interesting to see how businesses operate and manage their finances, often despite themselves. You get a unique insight into different businesses, and that's really valuable. Unlike tech, accounting is a stable career because everyone needs their numbers managed.
Meredith Smith: I might get criticized for this, but do you think the 20 to 40 age group might not see the value of connection because they grew up in a digital environment? Their social networks aren't as tactile. When I started, I had to learn through face-to-face interactions and in-person networking. Now, people might feel connected through the internet or social media and not see the need for professional organizations.
Alicia Galinas: Absolutely. It's not malicious, it's just how they experience life. Today’s freshmen were in high school when COVID started. They learned self-advocacy and time management in a virtual world, without open offices or face-to-face interactions. This shift affects their college experience and now, their professional lives. New managers learned their skills over Zoom. There's a lot of expedited change and different ways of connecting. We see people and think we're connected because we saw them on a video or heard them on a podcast, but deep, meaningful connection is different. This new generation experiences things differently from how we did, and we need to support them through that transition.
Judy Vorndran: At one point, I traveled nationally to advance my career without leaving Denver. It was daunting to dine alone in new places, but I ended up having wonderful experiences. It was a big stretch for me, but it enriched my life and career. I also started practicing yoga due to career stress. The Denver Bar subsidizes yoga classes, which is a nice perk. I wouldn't have done yoga if I wasn't so stressed, but it helped me become more present and whole as a professional. Stepping out of my comfort zone enhanced my practice and gave me a broader perspective on businesses across America. The entrepreneurial spirit is fascinating.
Meredith Smith: Well, Judy, it's really interesting to hear about your experience in Boston. It sounds like you spent a lot of time there to entertain yourself. Is that a result of COVID?
Meredith Smith: We don't have to travel as much anymore, so we've gotten used to the idea that we don't need to leave home. This mindset can make us miss out on tactile experiences because it's easier and more efficient to pick up the phone for a one-hour call instead of investing time in getting ready and traveling. This shift focuses more on efficiency rather than the intangible value of engaging and connecting with others in person.
Judy Vorndran: Yes, I'm grateful we made it through COVID. Meredith, you researched the taxability of streaming, right? I remember attending a conference years ago about content, and it was so new to me. But services like Netflix, one of my clients at Deloitte, got us through COVID. Our careers have evolved by working with businesses that started as ideas and grew into household brands. I'm glad we’re not traveling as much. While I used to enjoy having Premier status and staying in hotels, it's nice to connect and do things virtually now. However, we must remember that in-person interactions still hold value. Many of my clients became friends because we built relationships outside of work.
Alicia Galinas: Another emerging trend is what I call the Amazon effect. Nowadays, we think we can get whatever we need whenever we need it, without planning for the long term. This individualistic and personalized mindset has replaced the collective mentality. People now think they can just go online and get referrals or find someone for their business needs instantly. However, true relationships aren’t built that way. They require time and effort. Relationships are not microwavable; you can’t just order trust or a quality network.
Judy Vorndran: That’s a good point. With all these email campaigns and constant solicitations, it feels unconnected and impersonal. Real relationships are built on trust, not through a series of emails. One of my partners often says people just call him because he has built relationships and trust over time. Our marketing director also emphasizes that people care more about who you are and if you can help them rather than fancy proposals. This podcast allows people to see us in action and understand that we are real people, which helps build a sense of community.
Alicia Galinas: That’s true. My role is about building a community for CPAs. We need networks for support, learning, and training. When something happens, we can learn from each other. Our networks are crucial for career changes and opportunities, and businesses thrive on these connections. It’s been interesting to watch and try to reteach the value of these networks.
Meredith Smith: As we’re halfway through 2024, what were the main goals for the COCPA this year, and what are some initiatives you’re looking forward to in 2025?
Alicia Galinas: Great question. We have been focusing on two main streams of strategy: supporting our members and advocating for the profession. We’re realigning services to meet today’s needs, such as learning and advocacy. We’ve increased our capacity to speak on issues important to CPAs, beyond just protecting their licenses. We launched our foundation to support the future of the profession through scholarships, including a new community college transfer scholarship to help students transition to four-year institutions to study accounting.
Alicia Galinas: Enhancing the employee experience and keeping professionals in the field is also a priority. Our Leader Lead Fit program for those in the three to five-year space is particularly impactful. We’re also staying on top of current trends, such as ESG reporting, artificial intelligence, and legislative changes. CPAs need to be prepared for these future challenges and opportunities.
Judy Vorndran: What is ESG?
Alicia Galinas: ESG stands for Environmental, Social, and Governance reporting. It’s about businesses not just producing financial returns but also being accountable for their environmental impact, social contributions, and governance practices. CPAs need to think about their role in providing trust in these areas. If CPAs don’t adapt, they risk being left behind.
Judy Vorndran: My niece, a CPA, went into marketing and found her accounting skills very beneficial in measuring the effectiveness of marketing campaigns. Cross-pollinating skills like these is essential.
Meredith Smith: Alicia, when you eventually move on from your role at COCPA, what legacy do you hope to leave behind?
Judy Vorndran: That’s a great question, especially following in Mary’s footsteps, as she was in the role for a long time.
Alicia Galinas: It’s an honor to serve in this role. The legacy I hope to leave isn’t about me, but about empowering those who work for the organization, the volunteers, and the professionals we support. I want them to feel that their careers are better because they were part of this organization. The true legacy is the impact the COCPA has on the profession and ensuring that CPAs feel supported and empowered in their roles.