The Problem

The accounting profession’s talent shortage is multifaceted and influenced by several factors. As reported by the CPA Journal, the number of first-time candidates appearing for the US CPA exam decreased from 48,004 in 2016 to 32,188 in 2021, indicating a significant drop in interest and engagement in the accounting profession​ owing to non-competitive starting salaries, stringent educational requirements, and concerns about work-life balance​.

According to the NPAG’s initial findings, only one in nine business majors chooses to major in accounting, with many citing non-competitive salaries compared to other business majors. Additionally, the number of accounting graduates pursuing CPA licensure has dropped from 65% to around 45%. This decline is partly due to the overwhelming workload and lack of time for exam preparation, alongside financial and family obligations​​.

The NPAG’s draft strategy report meticulously outlines key themes and actionable recommendations to address the talent pipeline problem, instilling confidence in its effectiveness.

The Recommendation

The NPAG’s recommendations focus on six major themes that hold equal importance to revitalizing the accounting profession:

1. Tell a more compelling story: The accounting profession is not just about numbers and spreadsheets. It’s a dynamic field with immense potential for growth and impact. We need a grassroots effort to dispel misconceptions about the work being mundane or excessively challenging. This includes bolstering K-12 programs to foster early awareness of accounting careers and inspire the next generation of​ accountants.
2. Make the Academic Experience More Engaging: Educators should revamp introductory accounting courses to make them more appealing and supportive for students. This includes providing mentors, champions and utilizing technology to enhance learning. Recommendations also include adjusting the content and pacing of Principles of Accounting courses better to convey the prestige and opportunities within the profession​.
3. Address the Time and Cost of Education: Implementing nimble processes to evolve CPA licensure requirements, such as experiential learning models and a shift towards competency-based licensure, can help alleviate the burden on students. These models would focus on measuring mastery and readiness instead of just academic experience or time on the job​.
4. Grow Support for CPA Exam Candidates: Improving the CPA exam experience by addressing costs, adding flexibility, simplifying application processes, and reworking the exam content or format can help support candidates. Financial incentives, paid study leave, and reduced workloads are some strategies suggested to support exam candidates​​.
5. Expand Access for Underrepresented Groups: The profession should reflect the diversity of the U.S. population by targeting messages and creating scalable programs to attract underrepresented groups. This includes building stronger relationships with community colleges and universities with high minority populations​​.
6. Enhance the Employee Experience: Employers must make the profession more attractive by offering competitive salaries, manageable workloads, exciting work, and clear career advancement opportunities. This shift in business models and cultures is crucial for retaining talent within the profession​​.

KNAV’s Opinion – The Way Forward

Professions, like any other sector, require continuity to thrive. When a profession loses its appeal, it begins to decline, leading to an imbalance between demand and supply. The accounting profession is vital for ensuring financial integrity, and hence, as the supply of accountants diminishes, workloads inevitably increase. This further tarnishes the profession’s image and exacerbates the supply issue.

To address this, accounting firms must take proactive measures. Firstly, they need to raise awareness about the benefits of a career in accounting. Partners at established firms should engage with college and university students, providing a clear picture of the profession, including discussions on salary structures, career advancement, and benefits.

Special incentives should be provided within firms for staff pursuing their CPA certification. Additionally, showcasing how technology is now integral to accounting can help dispel the outdated image of mundane tasks, making the profession more attractive.

The shortage of CPAs in one region has opened up new offshore opportunities for accountants certified in other areas like India. By leveraging the availability of talent globally, this innovative approach can help address the regional talent gap and ensure a steady supply of qualified professionals.

Addressing the talent shortage in the accounting profession is not a task for a few but a collective responsibility. Each professional must treat this as a personal mission, understanding that only through collective action can the profession regain its appeal and ensure a steady supply of talented accountants for the future.

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