The accounting industry faces a significant talent shortage that could have far-reaching consequences for businesses and the economy. According to the Association of International Certified Professional Accountants, the number of people taking the CPA exam has dropped by nearly 50% between 1990 and 2021. At the same time, many baby boomer CPAs are retiring, leaving a gap of 340,000 fewer accountants compared to five years ago, as reported by the Bureau of Labor Statistics.
Large corporations can offer competitive salaries to attract CPAs, but smaller firms and startups often rely on independent CPAs for financial advice and strategic guidance. While technology can handle repetitive tasks, it cannot replace CPAs’ expertise and advisory capabilities. The industry is grappling with how to address this shortage.
Some believe streamlining the certification process without compromising standards could help increase the number of CPAs.
CPA shortage poses significant challenges
Others point to the need for firms to invest in domestic talent development rather than relying heavily on offshoring and AI to cut costs.
Lana Weldon and Doriena Parsons from Moore Australia recently discussed the issue on AD Insider. They emphasize the need for the industry to actively promote the diverse opportunities and potential for career growth in accounting to attract and retain young talent. “We are seeing a tremendous talent shortage in the profession,” stated BDO CEO Wayne Berson last year, highlighting the push for firms to double their offshore workforce.
However, this reliance on offshoring raises concerns about the quality of work and the future of domestic talent development. As the industry navigates these challenges, it must balance cost-cutting measures with the necessity to maintain high standards and invest in the next generation of accountants. Innovative approaches to recruitment and retention will be crucial to ensure the accounting profession continues to evolve and thrive in the face of a changing landscape.
