Navigating Change in the CPA Industry
The accounting profession is undergoing significant changes in how it approaches CPA licensure, driven by an urgent need to attract new talent. Jennifer Cryder, CEO of the Pennsylvania Institute of CPAs, reveals that research among business school students shows many view the traditional CPA path's return on time investment as insufficient, prompting industry-wide reassessment of licensing requirements.
In response, states across the country are converging on a groundbreaking solution: introducing a second pathway to CPA licensure. This alternative route would require a bachelor's degree in accounting, passing the CPA exam, and two years of work experience, compared to the traditional 150-hour education requirement. The change could be implemented in many states as soon as 2025-2026.
The profession is also addressing broader pipeline issues through several initiatives:
The value proposition for becoming a CPA is being redefined to appeal to newer generations. While previous messaging focused on long-term earning potential (with CPAs potentially earning $3 million more over their careers), today's emphasis is on immediate benefits like job stability and meaningful work opportunities.
Education institutions are experimenting with work-and-learn models, incorporating CPA exam review courses into the curriculum, and offering credits for internship experience. Some schools, particularly community colleges, are creating innovative programs at lower price points to make the path more accessible.
Industry organizations are increasing outreach to high school students, recognizing that over half choose their majors before starting college. The Pennsylvania Institute of CPAs, for example, has launched initiatives bringing CPAs into high school classrooms to showcase the profession's diverse opportunities.
"Whether you want to support families around the kitchen table making financial decisions, help Main Street small businesses in your community, or serve a multinational company in the global capital markets - all of these need CPAs," says Cryder in a recent interview with Accounting Today.
Looking ahead, the profession may consider even more innovative approaches, such as competency-based licensure or three-year degree programs. The key, according to Cryder, is maintaining regular evaluation of licensure requirements to ensure they remain relevant and adaptive to changing business needs while preserving the rigor and value of the CPA designation.
These changes are especially relevant to those of us in the world of tax preparation and compliance which has experienced an even more alarming talent shortage than other areas of the accounting profession. While a CPA license is not the only path to becoming a tax preparer, addressing the hurdles to licensure is one way to support the growing need for more tax preparers across the country.
Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.
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