The Future of Accounting: Exploring the Industry's Pipeline Problem

The American Institute of Certified Public Accountants (AICPA) notes declines in students graduating with accounting degrees and the number of people taking and passing public accounting exams. From a high of 50,000 exam candidates in 2010, as few as 32,000 took the exam annually in 2021—a 10-year low. With fewer CPA-certified accountants, the compliance risk also escalates for organizations.

In response, there have been some controversial suggestions made, such as lowering the bar for entry to encourage more participation — but what might that do to the quality of the practice going forward? Others recommend more practical changes and are adopting more aggressive approaches to entice students to enter accounting.

Here are some of the efforts the industry is undertaking to expose students to accounting as an attractive career option.

Can accounting be included in the STEM (Science, Technology, Engineering, Mathematics) curriculum in high schools?

Several state CPA organizations, such as the Texas Society of CPAs and the Pennsylvania Institute of CPAs have advocated including accounting in STEM programs, which would allow broader exposure to the field and make accounting fundamentals part of graduation requirements for students.

Considering how popular and ubiquitous STEM programs are across the country, this would allow the profession to reach an entirely new pool of potential professionals. Legislation was introduced in the U.S. Senate in 2021 to promote career awareness in accounting as part of STEM programs nationally, but so far has not made it out of committee.

The CPA Exam and its 150-hour requirement simply scare some people away from the profession. Why not change the requirements? Bill Dresnack, associate professor at the Rochester Institute of Technology, has proposed splitting the CPA credential in two: the Associate in Public Accounting, earned after two years of college; and the Paraprofessional in Public Accounting, earned after four years. Dresnack’s plan also allows students who earn these certifications to skip parts of the CPA exam. Dresnack calls his approach a “shorter benchmark,” but one that he says recognizes not all who enter accounting become CPAs.

However, in their report “Decoding the Decline: A CPA Pipeline Report” the Illinois CPA Society found those who did not complete the requirements failed to see the value of becoming a CPA. In other words, it wasn’t just the requirements, but the return on investment.

One attempt to address the return on investment problem is to make the position more attractive. After all, amid current downsizing and layoffs in various industries, inflationary periods, and uncertain job markets, accounting represents a stable career choice. With a growing need and median pay of $77,250 according to the U.S. Bureau of Labor Statistics, accounting should be an attractive — and lucrative — career path.

Organizations and firms have also launched more aggressive outreach programs, including social media campaigns to spark interest and grow pipelines. An increased attendance at career fairs has also become a popular approach to getting the word out and enticing new recruits.

Exposing students to how accounting impacts society beyond the numbers is also gaining traction. For example, showcasing how accounting can play a crucial role in sustainability and environmental consciousness in business. Connecting how accounting impacts real life makes a significant difference in sparking interest. This requires getting beyond abstract concepts and focusing on how accounting affects key business decisions and investments as well as the role accountants play in emerging industries. In many cases, it requires breaking down traditional stereotypes. Many students think CPAs only do taxes, while we know that it’s just one component of the job.

Another area of increased attention is the impact of artificial intelligence (AI) in the accounting field. AI and automation are reducing the number of tedious tasks that accountants must do, freeing them up to focus on high-level, more rewarding work. This provides an opportunity to attack the perception that accounting is boring. In fact, AI in accounting is on the cutting edge, reducing rote tasks and encouraging more creative thinking. This makes work more impactful and strategic, allowing CPAs to play an even greater role in organizational decision-making.

At the same time, this is providing opportunities for students studying AI and data analytics to consider working in the field—a natural overlap with STEM pursuits. While this doesn’t directly solve the pipeline problem for accountants, it could attract more students by highlighting how high-tech an accounting career can be.