The accounting profession is facing a critical shortage of certified public accountants (CPAs), with more than 73% of accounting students relying on external financial support to obtain their licenses, according to a survey by the Pennsylvania Institute of Certified Public Accountants (PICPA)1. The 150-credit-hour requirement for certification is viewed by many students as "not worth the time," exacerbating the talent shortage. On some level that is disturbing in many ways. The old-school thinking of investing your time and money into your future is well worth it...or is it not?
There is a significant need for mentorship, assistance in job placement, support in exam preparation, and selling college students on the CPA value proposition. As alarming, the situation is further compounded by a 7.4% decline in accounting graduates at the end of the 2021-2022 academic year, continuing a six-year trend of decreasing entrants into the profession, as reported by the American Institute of Certified Public Accountants (AICPA).1
The scarcity of CPAs is impacting audit efficiency, with audits becoming more expensive and difficult to complete in a timely manner. Investors, board members, and audit committees know the value of having qualified accountants managing and producing accurate and timely financial reports.
The data suggests greater efforts will be needed by the accounting profession to promote the value proposition of becoming a CPA. Mentoring and coaching early in career professionals will require additional effort to attract professionals through engaging methods, community involvement, and a presence on social media. As we plan for the future in finance, reinvestment in creating the next generation of accounting leaders should be on our minds. More to follow in '24...
Footnote
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