The accounting profession is facing a critical challenge: a severe shortage of Certified Public Accountants (CPAs). This crisis has been brewing for years, and recent data paints a concerning picture for the future of the industry.
Recent studies from the American Institute of Certified Public Accountants (AICPA) and other firms have revealed alarming trends:
1. In 2023, there was a 27% decrease in students sitting for the CPA exam.
2. In estimated 75% of CPAs are expected to retire in the next 15 years.
These statistics highlight an aging profession within sufficient new talent to replace those retiring. The shortage is not just a future concern; it's already impacting businesses and accounting firms across the country.
In response to this crisis, the AICPA and the National Association of State Boards of Accountancy (NASBA) have approved updates to create a third pathway for CPA licensure. This new option includes:
1. A bachelor's degree
2. Two years of professional experience
3. Passing the CPA exam
This pathway joins the two existing options:
1. Bachelor's degree + 30 additional credit hours + CPA exam + one year experience
2. Bachelor's degree + master's degree + CPA exam + one year experience
All pathways still require an accounting concentration at either the undergraduate or graduate level. These changes aim to make the CPA designation more accessible while maintaining high standards for the profession.
While these new pathways may help increase the number of CPAs, companies must also focus on attracting and retaining talent. One key factor in this effort is technology adoption. Our research shows that:
> Companies mentioning technology use in job postings receive 40% more applicants than those that don't.
> Many accounting professionals are deterred by outdated systems and legacy processes.
To attract top talent, companies should:
1. Embrace new technologies, including AI and automation tools
2. Highlight tech adoption in job postings and during interviews
3. Invest in ongoing training and development for existing staff
By modernizing their accounting processes and systems, companies can not only attract more applicants but also improve efficiency and job satisfaction among current employees.
While long-term solutions to the CPA shortage are being implemented, many organizations may find themselves short-staffed. Interim staffing can be an effective way to bridge the gap:
1. Flexibility: Hire skilled professionals for specific projects or busy seasons without long-term commitments.
2. Expertise on demand: Access specialized skills when needed without maintaining a full-time position.
3. Knowledge transfer: Interim professionals can share best practices and new perspectives with your team.
By leveraging interim staffing solutions, companies can maintain productivity and quality while working on long-term strategies to attract and retain CPA talent.
The CPA shortage is a significant challenge for the accounting profession, but it's not insurmountable. By embracing new pathways to licensure, adopting modern technologies, and utilizing flexible staffing solutions, companies can navigate this talent crisis and position themselves for success in the evolving landscape of accounting and finance.
