Where Have All the Accountants Gone?

by Virlene Cloyd, Staff Associate II

Posted on October 17, 2023

Aside from the nationwide staff shortage all entities have faced due to the global COVID-19 pandemic, the accounting profession is seeing a decline due to two main reasons. On the backend, according to the article ‘Bridging the Gap in the CPA Pipeline’ by Don Meyer, CAE NJCPA Chief Marketing Offices (March 15, 2022), “Statistics from the AICPA suggest that 75 percent of current CPAs will retire in the next 10 to 15 years, leaving a huge vacuum in the profession.” On the frontend, there are less students seeking an accounting degree, and of those, not all see a reason to obtain the certification.

So why are less students seeking an accounting degree, and what can CPA firms and accounting professionals do about it?

First, let’s discuss some factors as to why less students are seeking an accounting degree. According to some nationwide surveys amongst teenagers (13-19), the top five careers most likely to be pursued are 1) medicine, 2) environmental conservation, 3) teaching, 4) social work, and 5) politics. As you can see, the younger generation(s) are seeking careers they feel can ‘make a difference’ in society. When students think of accounting, they don’t see it as being able to make a difference. This may be due to the limited perception of where an accounting degree can take you. If your family and friends, like mine, automatically assume that since you are an accountant all you do is taxes from nine to five, that would be unappealing to most people. In addition to this misperception, many students view the accounting career as being long hours with low pay. As the younger generation(s) seek a more work-life balance and often find this more of a priority over the pay, it is reasonable they wouldn’t want to pursue such a career.

Now, how do CPA firms (accounting professionals) reach the younger generation and why is this important? According to an article in the Journal of Accountancy (June 2023), ‘How students view the accounting profession’ by William Brink, CPA, Ph.D.; Tim V. Eaton, Ph.D.; and Dan Heitger, Ph.D., “Fifty-two percent said they selected their major prior to entering college, while another 21% chose their major during their first year.” As most CPA firms recruit college students during their senior year or upon completion of the Masters degree, it’s becoming a ‘too little, too late’ scenario.

Here are a few suggestions CPA firms and professionals may consider reaching younger generations and change perceptions of the accounting profession:

• Consider implementing an extern/internship program geared toward high school students/first-year college students.
• Share information with high schools and colleges that:
  • Explains the different areas of accounting, other than just tax preparation, such as consulting, auditing, forensics, etc.
  • Explains the variety of career paths for an accounting degree, such as chief financial officers or executive directors for entities such as non-profits, school districts, and governmental entities that students view as those that can ‘make a difference’.
  • Explains how the accounting profession has also moved into a more flexible, work-life balance atmosphere.
• Consider having staff present in high school/college classes or attend high school job fairs to share ‘success’ stories.

Regardless of what route your organization chooses to take, let’s get out there and make accounting exciting again and regrow the profession!