The Accountant Shortage is a Threat to the Future.

“It’s time to re-brand the accounting profession.” This is the advice provided by public accounting firms, staffing agencies, and corporate accounting chiefs in response to the shortage of accountants brought on by voluntary job resignations and young people's perceptions that accounting is a boring job.

The AICPA's most recent study of college enrollment pointed to declining numbers of undergraduate and graduate accounting students and CPA exam applicants. Since 2019, there has been a 17% decrease in the number of accountants and auditors, making it difficult for businesses and audit firms to meet their hiring requirements.

The shortage seems to start with supply. Each year, less than 100,000 individuals take the Certified Public Accountant (CPA) exam. Between 2017 and 2018, the number of people applying for the CPA exam decreased by 7%, and the number of people who passed all four sections of the exam decreased by 6%. Between 2016 and 2019, there was a 4% drop in accounting course enrollment at universities.

The shortage of supply is exacerbated by a combination of high turnover and growing demand. Due to low morale and early retirement, accountants have been leaving corporations and audit firms in record numbers. Even though the industry has known for a long time that the large baby boom generation retiring will cause a talent shortage, the Great Resignation has made the shortage earlier and more severe than anticipated. Who could be a better candidate for early retirement than numerate individuals who had worked hard their entire lives and carefully managed their pension funds?

Additionally, there are more demands placed on accountants' time and expertise. They frequently have to measure things they have never measured before, including the environmental impact of carbon emissions, which is a job that is becoming more difficult as a result of the SEC's crackdown on greenwashing. They face new challenges as a result of the shift to working from home, such as how to value off-site offices and how new regulations force them to reevaluate the value of leased property.

‘CPA Evolution’
But changes to the CPA are coming—hoping to attract tech workers to the profession. The American Institute of Certified Public Accountants (APA) refers to it as a CPA Evolution; in reality, it is a revision to the CPA examination. Everyone will take the same three sections starting in 2024; however, for the fourth exam section, you can specialize in IT, auditing, tax, or financial reporting. The tent will be larger as a result of the change. Since CFOs are increasingly involved in major IT projects, that is an intriguing addition.

However, one disadvantage of the new CPA exam model is that everyone receives the same certification. The fact that you took the IT exam does not confer any special status.

Conclusion
‍The business world needs accountants more than ever, and it's crucial to understand why. Accountants and accounting divisions allow organizations to grow and flourish financially and are a cornerstone in any industry. First, we'll jump into a general overview of accounting. Better late than never, be the one who can help organisation to grow by enrolling with Miles Education to get the most prestigious CPA review certificate.