North Bay accounting leaders reveal changes to their business practices, outlook for future

Post-pandemic work styles and changes to the tax code are among the biggest adjustments these five accounting executives in the North Bay told the Business Journal they have had to navigate.

  • Michelle Muth Ausburn, BPM
  • Jeff Belingheri, Bregante + Company
  • Jon Dal Poggetto, Dal Poggetto & Company
  • Brent Garrison, Allen Wine Group
  • Craig Underhill, Brotemarkle, Davis & Co.

Three years after the pandemic, what has changed most in your business model?

Michelle Muth Ausburn

Assurance wine and craft beverage co-leader, North Bay partner in charge, BPM LLP, Santa Rosa (707-544-4078), St. Helena (707-968-5207); bpmcpa.com

Michelle Ausburn’s expertise is Generally Accepted Accounting Principles–compliant financial accounting and reporting. She serves middle-market, privately-held, family owner-managed, and institutionally owned businesses and publicly held companies. She has experience working with companies in the startup phase through ownership transition, including IPO. She spends the majority of her time working with wineries, vineyards, real estate entities, négociants, custom crush facilities, wine and spirits distribution companies, natural and organic food companies, and non-wine agriculture.

Since 2009, she has served on the planning committee for the Cal CPA Wine Industry Conference.

Michelle Muth Ausburn: Our business model has most notably changed in the way we embrace remote work, which has enabled us to expand our reach and attract and retain top talent. Our presence now extends to 41 states in the U.S. and eight countries, enhancing our nimbleness and responsiveness, and empowering us to better serve clients across time zones.

Jeff Belingheri

Partner, Bregante + Company LLP, 330 Ignacio Blvd., Suite 201, Novato, CA 94949; 415-883-4262; bcocpa.com

Jeff Belingheri has been a certified public accountant since 1993 and is a member of the California Society of Certified Public Accountants, the American Institute of Certified Public Accountants and the Marin County Estate Planning Council.

He holds a Master of Science in Taxation from Golden Gate University and a Bachelor of Science in business administration (finance) from California Polytechnic State University in San Luis Obispo. Belingheri received his training at PricewaterhouseCoopers in the audit department of the Silicon Valley office, where he worked exclusively with high-tech startup companies. He joined Bregante + Company LLP in 1993.

Jeff Belingheri: We have most people working at home … we have no mandatory policy re: coming in to the office, every employee gets to choose whether to work at home or in the office.

Jon Dal Poggetto

Managing partner, Dal Poggetto & Company LLP, 149 Stony Circle, first floor, Santa Rosa, CA 95401; 707-545-3311; dalpoggetto.com

Jon Dal Poggetto is a graduate of University of California, Berkeley, with a Bachelor of Science degree in business administration. He was a partner with the CPA firms of Eisenberg & Company LLP, Touche Ross & Co. and Deloitte & Touche before founding Dal Poggetto & Company LLP on Nov. 1, 1992.

Dal Poggetto coordinates the firm’s delivery of accounting, tax and consulting services to privately held companies and their owners. The firm serves over 400 clients, and has a particular emphasis in serving clients in the wine industry. In his spare time, he enjoys golfing, fishing and social events with his family, friends and colleagues.

Jon Dal Poggetto: The ability of all of our staff to work remotely, as well as in our office.

Brent Garrison: The most notable change has been the increased emphasis on flexibility in remote work. We have witnessed a remarkable transformation in the way our employees work, adapt, and thrive in this new remote environment. Although it hasn't been without its hurdles, particularly in maintaining a cohesive company culture, the advantages have far exceeded the challenges.

Craig Underhill: The most significant transformation in our business model is the shift to an almost entirely remote workforce. This evolution has not only broadened our talent pool, drawing in top-notch accountants from across the U.S., but our adoption of cloud-based systems has also ensured uninterrupted and smooth operations. Notably, this change has bolstered our customer service, making it even more efficient and responsive than before.

What are the lasting effects of the economy on your business and/or your company strategies?

Michelle Muth Ausburn: We have devised strategies to continue to foster our clients’ growth and meet them where they are in their business life cycle. We launched the BPM Business Lifecycle Center to help business leaders see around the corners and ‘know what they don’t know.’ This insight often leads them to ask better questions of their financial, legal and operational professionals — or to better vet the professionals they might need. It all adds up to faster scaling and more lucrative exits.

The BPM Business Lifecycle Center is an outgrowth of the work we do every day to help our clients with the building blocks they need to progress from one developmental phase to the next, and deliver insights into the risks and complexities they will likely encounter along the way. We strive to remove the guesswork and time-consuming hunt for scattered best practices. We’ve compiled the information into one easily accessible platform because the path to liquidity is risky enough without the mystery of wondering ‘what’s next?’

Jeff Belingheri: Our business has never really been too impacted by the general economy. Our clients are generally solid businesses and wealthy / complex individuals, and they all need tax planning and tax compliance work whether the economy is good or bad. The main impact is on the consulting work that we do (i.e., new business startups, ownership transition planning, M&A, etc.) … this type of work typically slows down when the economy slows.

Jon Dal Poggetto: Inflation and high interest rates are affecting cash flow for most of our clients, which then affects our business when they are challenged to pay us in a timely manner for our work on their behalf.

Brent Garrison

Partner, Allen Wine Group, 120 Stony Point Road, Suite 230, Santa Rosa, CA 95401; 707-545-7930; allenwine.com

Brent Garrison has a wealth of experience in the wine industry, having worked extensively with both small, privately held wineries and large wine companies. Currently, at Allen Wine Group, Garrison offers controller and CFO services to private wineries. His journey in the wine industry began at Moss Adams, where he collaborated directly with wineries and food manufacturing companies across California and the United States.

He has also held a series of financial management roles within both large wine corporations and small family-run businesses.

Brent Garrison: It has driven us to reevaluate and adapt our approach in several key ways. Cost pressures and heightened competition have served as strong incentives for us to go beyond merely offering standard accounting services. We've recognized the need to deliver clearly identifiable and measurable value to our clients. It's no longer enough to provide quality and consistent accounting; we must now demonstrate our ability to enhance our clients' financial well-being and provide solutions that make a tangible difference in their businesses.

Craig Underhill

Partner, Brotemarkle, Davis & Co. LLP, 1000 Main St., Suite 250, Napa, CA 94559; 707-963-4466; bdcocpa.com

Craig Underhill, who also holds the title “emperor of enlightenment” at Brotemarkle Davis, boasts over 37 years as a certified public accountant, with roots at the firm since 1995. His education in strategic management, productivity, and human behavior empowers individuals across all levels — from top executives to hourly staff — to reach their peak. A master at inciting introspective questions, Craig enables individuals to unlock their potential and bolster performance.

Beyond the firm, he has dedicated two decades as the board chair for Junior Achievement in Napa County. A proud alumnus of Chico State University with a degree in business administration, Underhill also holds a certification in strategic performance management.

Craig Underhill: The fluctuations of the economy invariably leave an imprint on any business model, ours included. While we have always anchored our operations around superior customer service, the economic ebbs and flows have further highlighted the significance of our core strategy: diving deep to understand our customers' challenges. By consistently posing the right questions, we can tailor our services, ensuring they remain relevant and adaptive to the ever-changing needs of the wine industry. Regardless of economic challenges, we place unwavering faith in the strength and cohesion of our team. By championing transparency, setting clear goals, and maintaining open communication, we not only navigate but also thrive amid the economy's uncertainties. This holistic approach ensures we remain steady, even when navigating the roller coaster of economic shifts.

What has been the biggest policy change (tax law, regulatory changes, accounting standards) challenge for you and why?

Michelle Muth Ausburn: One of the current policy challenges facing businesses in California revolves around the passage of SB 253 and SB 261, the "California Climate Accountability Package." The new laws carry substantial ramifications for corporate environmental and financial reporting. This marks a significant shift in corporate responsibility with far-reaching implications for businesses operating in California, their supply chains and their financial stakeholders.

SB 253, known as the Climate Corporate Data Accountability Act, casts its regulatory net over public and private companies conducting business in California. For companies with annual revenue surpassing $1 billion, the foremost requirement is the obligatory public disclosure of Scope 1 and 2 emissions. Beginning in 2026, these companies will also be compelled to incorporate Scope 3 emissions in their reporting. This means if your company is part of the value chain of any organization directly impacted by this disclosure mandate, those reporting entities may request your company's emissions data to meet their own Scope 3 reporting obligations.

SB 261, titled Greenhouse Gases: Climate-related Financial Risk, applies to both public and private companies operating in California with annual revenue exceeding $500 million. Under this legislation, companies meeting the revenue threshold will be obligated to divulge information about climate-related financial risks and the strategies they have employed to mitigate and adapt to these risks.

Earlier this year, and in advance of these new regulations, BPM finalized a new strategic alliance between the Firm’s Environmental, Sustainability and Governance Advisory Services practice and carbon accounting company Sustain. Life, which provides a software as a service platform that helps future-proof companies by decarbonizing and taking climate action. Our clients gain access to a suite of carbon accounting, ESG administration and emissions reduction services, as Sustain. Life’s software capabilities amplify BPM’s ability to help clients keep up with market demands, comply with these and other environmental regulations and position themselves for funding opportunities.

Jeff Belingheri: The new tax legislation that typically passes shortly after presidential elections combined with shifts of power in Congress are always challenging. For instance, gaining a complete understanding of and doing planning around the QBI deduction that became law in 2018 was rather complicated. Also, the PTE Elective Tax Payment program (i.e., AB 150) has added a whole new dimension of tax planning for pass-through entity clients.

Jon Dal Poggetto: Currently, the aftermath of the Tax Cuts and Jobs Act of 2017 is creating challenges due to expiring tax favorable provisions of that legislation.

Brent Garrison: Changes to the GAAP treatment for leases has been an adjustment to the historical way of accounting for these matters. Property and vehicle leases which were historically not reported on the balance sheet have now been written on.

Craig Underhill: The 2017 Tax Cuts & Job Act introduced a requirement to capitalize research & experimentation costs, effective Jan. 1, 2022. Originally, Congress planned to adjust this provision before its effective date. However, other priorities sidetracked these adjustments, and by 2022, with no consensus in Congress, the provision took effect. This left CPA firms like ours without clear guidance, causing significant potential tax implications for businesses. For instance, a winery with $10M in sales had an added $1.5M in taxable income in 2022. Now, with Congress contemplating a potential retroactive fix or a 2024 change, businesses face challenges in cash flow planning.

Are you implementing AI (artificial intelligence) in your work?

Michelle Muth Ausburn: Yes, we believe AI holds significant promise in enhancing value for our clients. We approach this with an awareness of the positive impact it can have while prioritizing security and control measures to mitigate potential risks.

We acknowledge the transformative potential of AI, especially generative AI, in various operational facets. We view AI as a tool to augment our workforce rather than replace it, and we are responsibly exploring additional use cases within the framework we have established.

We see that AI can increase value and empower our employees to focus on more intricate projects and future innovations. Furthermore, we believe AI can enrich learning and training initiatives by tailoring them to individual needs, yielding improved performance outcomes.

Jeff Belingheri: We are starting to use TaxCaddy and SurePrep 1040 Tax, which utilizes AI to populate Lacerte with client income and expense data.

Jon Dal Poggetto: We are using it primarily for tax research activities.

Brent Garrison: We are! Machine learning has made significant advancements in recent years, and Allen Wine Group is committed to staying at the cutting edge of this technology. We are leveraging AI to enhance various aspects of our operations, from data analysis and automation to improving decision-making processes. This allows us to be more efficient and effective in serving our clients and adapting to the evolving business landscape.

Craig Underhill: We began integrating AI into our audit and advisory services more than five years ago. Innovation is at the heart of our operations, and we constantly seek ways to enhance our offerings. By embracing cutting-edge technology, we aim to unlock unparalleled benefits for our customers.

What do you wish your clients knew before sitting down with you?

Michelle Muth Ausburn: I’d like my clients to know that we don't create the regulatory framework but must operate within it. Our commitment is to assist our clients in achieving the most favorable outcome, tailored to their unique needs and business objectives, while serving the public interest and honoring the public trust.

Jeff Belingheri: Nothing really … its more about me asking questions and finding out about my clients’ specific situations and needs. By asking questions and exploring things with my clients, they learn most things that they need to know about me and BCo.

Jon Dal Poggetto: My job becomes much easier when they have a clear idea of their goals and are able to articulate them to me.

Brent Garrison: Choosing the right accounting and financial partner can have tremendously positive impact on your business. Allen Wine Group is deeply committed to the success of our client partners as our success is intricately linked to the growth and prosperity of our clients' businesses. We genuinely care about their well-being, and we are dedicated to providing the support, expertise, and services they need to thrive.

Craig Underhill: When clients sit down with us at BDCo, it's less about the immediate paperwork and more about open dialogue. We hope for transparency about where they envision their business heading and the challenges they face. By shedding light on their aspirations and hurdles, we can forge a genuine business partnership, guiding them both in the immediate concerns and long-term endeavors.

Here's to crafting a journey together, blending expertise with shared goals. Cheers to mutual growth and understanding!

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