Insights by Carlo Coumoutsos, Partner
In recent years, the accounting industry has undergone a significant shift, with fewer students declaring accounting as a major in college and fewer accountants becoming certified. For the first time in the 21st century, the number of CPAs nationally has decreased from the previous year. Additionally, 75% of active CPAs in the United States are over the age of 50 and within 15 years of retirement age. These trends have led to talent shortages, reshaping the accounting field and creating an unprecedented demand for accountants.
Accountants are in high demand, and there aren’t enough professionals to fill the gap. The shortage can be attributed to several factors, but one of the most significant is the rigorous educational and certification requirements necessary to become a CPA. Recognizing this challenge, state boards and the AICPA have begun adjusting to address these barriers.
Changes in CPA Certification Requirements
To help alleviate the certification bottleneck, some key changes are being implemented:
- Extended CPA Exam Window: The time allowed to pass all four parts of the CPA exam has been extended from 18 months to 30 months. This change provides candidates with a greater opportunity to complete the certification process, a challenge that has become difficult in the post-pandemic world.
- Potential Credit Requirement Reduction: Several states are considering reducing the licensure requirement from 150 credit hours to 120 credit hours. Public accounting firms are also backing this initiative as they struggle to hire new talent at the Associate level.
- Increased Salaries: To attract new talent, public accounting firms are raising starting salaries across the board, making accounting an even more lucrative career choice.
What This Means for Aspiring and Current Accountants
If you’re considering a career in accounting or are already on this path, now is the time to stay the course as you’re an in-demand commodity! Earning your CPA certification will set you apart in the industry, offer competitive salaries, and open doors to a range of opportunities. The accounting profession is evolving, and those who stay committed to their growth will find themselves in a position of strength in the job market.
At Landing Point, we specialize in connecting accounting professionals with top-tier opportunities. Whether you’re just starting your career or looking to take the next step, we’re here to help navigate the evolving landscape of the accounting industry.