Accountant Shortage Spurs Call for Alternate CPA Path, Pay Bump

Strict education requirements and stagnant pay deter aspiring accountants from joining the profession and staying in it. An industry proposal calls for big changes to fix these problems.

The proposal, released Tuesday, is the work of a group that a top accounting industry association convened last year to tackle the shortage of Certified Public Accountants, or CPAs.

Would-be CPAs should be allowed to earn equivalent college credit on the job, either through programs administered by colleges and universities or by a qualified employer, according to the group’s draft recommendations. Audit firms also need to step up pay for entry-level accountants and improve work-life balance, the group said.

“They have to change their business model and culture—that’s just a fact,” said Lexy Kessler, partner at accounting firm Aprio LLP and chair of the group. Its members include representatives from accounting firms, state CPA societies, and academia. “The most successful firms going forward will be the ones that make the change.”

The recommendations are part of an ongoing effort by the American Institute of CPAs to tackle problems attracting new accountants and retaining existing professionals in a field hemorrhaging talent. Only licensed CPAs can audit company and non-profit financial statements. Accountants also play a vital role helping companies calculate and report what taxes they owe.

The plan calls for more support for CPA exam candidates, retooling introductory university accounting courses to attract more students, and building awareness of accounting careers among underrepresented groups. It also urges accountants to take a “pipeline pledge,” committing to lend their time to encourage students and tell new accountants about how they’ve built fulfilling careers.

Currently, would-be CPAs must earn 150 hours of college credit, the equivalent of five years of college. The time and money to finish the requirements is seen as a high barrier to attract talent, when entry-level salaries in finance or other fields are more appealing.

“What we’re talking about is really adding flexibility to the current model,” said Sue Coffey, CEO of public accounting for the Association of International Certified Professional Accountants, a sister organization to the American Institute of CPAs. Coffey was also part of the group that wrote the pipeline proposal.

States’ Actions

The group recommended additional paths for would-be CPAs to earn those extra 30 hours of college credits via hands-on learning at accounting firms. Details would need to be worked out—and state boards of accountancy would need to get involved—but it would essentially mean relevant work could count toward educational requirements. Some state laws or regulations also could need to be changed, Coffey said.

A work-for-credit program is already in place, on a small scale, with PricewaterhouseCoopers LLP and St. Peter’s College in New Jersey. Accounting graduates work at the Big Four firm and earn the necessary credits to qualify for the CPA exam.

The National Association of State Boards of Accountancy and the AICPA launched another pilot program last summer, partnering with Tulane University to allow students with undergraduate accounting degrees to earn up to 30 college credits through self-study online courses while working at accounting firms.

The AICPA, the accounting industry’s largest professional group, is still weighing the draft recommendations, it said in a statement. It has expressed “directional support” for an intentional and coordinated effort “to evolve CPA licensure,” the statement said.

At the same time, the organization cautioned against any impact on CPA mobility, the system of state laws that allow CPAs to practice outside their home jurisdictions without having to apply for new licenses. Any changes need to be nationally coordinated and cohesive, the AICPA said.

“Unilateral actions by states will be highly disruptive to CPAs and the businesses who engage or hire them and should be avoided,” the organization said.