Chris Vanover wants to shake up how accounting solutions are offered.
It’s why he started CPAClub, formerly known as AuditClub, which allows accounting firms to contract outside certified public accountants without having to go through the training process.
The Irvine-based startup, founded in 2022, uses a subscription model for its accounting services aimed at top 10, regional and local CPA firms and companies.
It has recruited two employees from Big 4 accounting firms that will step into their roles later this month.
Ellen Sulistio is joining as vice president of accounting and advisory on Aug. 20. She brings nearly 10 years of experience from PwC in Irvine, as well as one year at Deloitte in the accounting and advisory group.
Stephanie Hidalgo was an audit manager at KPMG LLP in San Diego, where she also participated in the firm’s generative AI pilot program. She officially starts today as an accounting and advisory chief.
“We’re looking to bring her on board to help innovate with new products and ultimately think about how artificial intelligence can help with some of the other things that we’re intending to deliver in the future,” Vanover told the Business Journal.
CPAClub in January expanded access to its subscription services to both private and public companies in addition to CPA firms.
Talent Shortage
CPAClub has three subscription levels on a monthly, seasonal and yearly basis. A subscription can range anywhere between $7,500 per month and $25,000 per month.
Members get access to the company’s talent who provide services such as paperwork preparation, second reviews on audits and help with navigating regulatory compliances.
The idea for CPAClub came from the current talent shortage in the industry, according to Vanover.
The American Institute of Certified Public Accountants suggested that 75% of CPAs reached retirement age by 2019. This coupled with lower student accounting enrollment has “created a perfect storm,” Vanover said.
Part of the issue is the overworked culture in the industry and low starting salaries.
“I see the negative connotation that the profession has,” Vanover said. “I think that’s unfortunate because there’s so much good that the profession can offer.”
Having a subscription model over billable hours has allowed CPAClub to create a four-day work week for its employees, as well as hybrid work options, Vanover said.
CPAClub’s leadership also has Big 4 ties, with Vanover having started his career at PwC, where he helped design the company’s proprietary audit software platform. Prior to CPAClub, he was deputy technology controls leader at Deloitte and an audit partner at Squar Milner LLP before it was combined with Baker Tilly US LLP in 2020.
He’s also a past nominee of the Business Journal’s Excellence in Entrepreneurship and Innovator of the Year awards.
Industry Insight
Accounting firms in Orange County have become “few and far between” as of late due to mergers and acquisitions, a trend that will likely continue, according to Vanover.
Last month, CBIZ Inc. (NYSE: CBZ) said it was acquiring New York-based Marcum LLP, which has an office in Costa Mesa, for $2.3 billion.
Vanover said getting a private equity buyout or merging upstream may be beneficial to partners but comes at the detriment of employees.
“It’s an exit strategy, but not necessarily an attraction strategy,” Vanover said.
