Executive Summary
The accounting profession is confronting a systemic talent crisis of unprecedented scale and complexity. A confluence of demographic shifts, educational barriers, and evolving workplace expectations has created a "perfect storm" that threatens the stability and growth of firms and the integrity of financial markets.
Accountants and auditors who left their jobs between 2020 and 2022 (17% workforce contraction)
The crisis is defined by a severe supply-demand imbalance. A "great attrition" has seen over 300,000 accountants and auditors leave their jobs between 2020 and 2022, a 17% contraction of the workforce. This exodus is compounded by a demographic cliff, with an estimated 75% of current CPAs at or near retirement age. Simultaneously, demand remains robust, with projections of approximately 136,400 open positions annually for the next decade.
In response, the profession has mobilized on all fronts. Regulatory bodies like the AICPA and NASBA are spearheading reforms to licensure, most notably by endorsing alternative pathways that substitute work experience for the 150-hour ruleāa change over 17 states are now pursuing.
The 10-year outlook is one of profound transformation. The talent shortage is acting as a catalyst, accelerating the adoption of technology and forcing a shift in the accountant's role from a compliance-focused technician to a technology-enabled strategic advisor. The accountant of 2035 will be a "T-shaped" professional, combining deep technical expertise with broad skills in data analytics, AI, ESG, and communication.
Section 1: Anatomy of a Crisis - The Shrinking CPA and Accountant Talent Pool
The accounting profession is in the grip of a severe and worsening talent shortage. This is not a cyclical downturn but a structural crisis born from a confluence of demographic inevitabilities, pipeline failures, and shifting economic incentives.
The Great Attrition and the Supply Shock
Of accounting firms are turning away work due to staffing shortages
The most immediate feature of the crisis is a dramatic contraction in the number of practicing accountants. Between 2020 and 2022, over 300,000 U.S. accountants and auditors left their jobs, representing a staggering 17% decline in the total workforce in just two years.
This supply shock is occurring against a backdrop of persistent and robust demand. The U.S. Bureau of Labor Statistics (BLS) projects that employment of accountants and auditors will grow 6% from 2023 to 2033, faster than the average for all occupations. This translates into an estimated 130,800 to 136,400 job openings for accountants and auditors each year, on average, over the next decade.
More alarmingly, the talent shortage is affecting the quality of financial reporting. In the first half of 2023, approximately 600 U.S.-listed companies reported weaknesses in their internal controls related to personnelāa 40% increase from pre-pandemic levels in 2019.
The Demographic Cliff: A Generational Exodus
Of current CPAs are at or near retirement age
Compounding the attrition problem is a looming demographic cliff. The accounting profession is disproportionately reliant on the Baby Boomer generation, which is now exiting the workforce in large numbers. The American Institute of Certified Public Accountants (AICPA) has repeatedly warned that approximately 75% of its current CPA members are at or are nearing retirement age.
A Glimmer of Hope? Analyzing Recent Enrollment Trends
The primary feeder for the professionāuniversity accounting programsāhas been a major source of concern for nearly a decade. In the 2021ā2022 academic year, U.S. universities awarded approximately 47,070 bachelor's degrees in accounting, a 7.8% drop from the prior year and the largest single-year decline since at least 1994.
However, very recent data offers a potential glimmer of hope. New data from the National Student Clearinghouse for the spring 2025 semester shows a remarkable 12% year-over-year increase in undergraduate accounting enrollment, bringing total undergraduate accounting enrollment to a five-year high of over 266,000 students.
Section 2: Deconstructing the Pipeline - From Classroom to Career
The crisis in the accounting talent pipeline is not the result of a single failure but a series of fractures along the entire path from the classroom to the corner office.
The Education Equation: Barriers to Entry
The 150-Hour Hurdle
The requirement for 150 semester hours of education to qualify for CPA licensure stands out as one of the most significant deterrents. Current accounting professionals have characterized the 30 additional credit hours beyond a standard bachelor's degree as a "six-figure opportunity cost" when accounting for tuition and lost wages, for what they see as a "seemingly zero" premium in starting compensation.
Of business majors who considered but did not choose accounting cited the 150-hour requirement as a key reason
The Compensation Gap
According to an analysis of U.S. Department of Education data, master's degree graduates in accounting had median earnings of $58,980 one year after graduation. In stark contrast, their peers with master's degrees in finance and management information systems (MIS) earned $71,001 and $71,822, respectively.
| Profession | Entry-Level Education | Median Starting Salary | Opportunity Cost vs. Finance/MIS |
|---|---|---|---|
| Accounting (CPA Path) | Bachelor's + 1 Year (150 credits) | $58,980 | ~$71,000 + Tuition |
| Finance | Bachelor's Degree | $71,001 | N/A |
| Management Info. Systems | Bachelor's Degree | $71,822 | N/A |
| Computer Science | Bachelor's Degree | $86,964 | N/A |
The Professional Experience: A Leaky Bucket
Of accounting professionals plan to leave their current employer within the next three years
The Satisfaction Paradox
Despite these significant challenges, a fascinating paradox emerges from the data: 78% of current accounting professionals and 90% of current accounting students are either very satisfied or somewhat satisfied with their decision to pursue accounting.
Section 3: A Profession Mobilized - Strategies and Initiatives in Response
Faced with a crisis that threatens its very foundation, the accounting profession has mobilized a comprehensive, multi-front response.
Regulatory and Societal Offensive: Rewriting the Rules
Reforming Licensure: The 150-Hour Rule Under Siege
The most significant structural reform underway is the attack on the 150-hour rule. In May 2025, the boards of both the AICPA and NASBA agreed to amend the Uniform Accountancy Act (UAA) to officially endorse an alternative pathway to licensure. This new pathway allows a candidate to become a CPA with a bachelor's degree and two years of relevant work experience, bypassing the need for 150 credit hours.
States have either enacted or are actively considering legislation to create alternative CPA pathways
Firm-Level Adaptations: Competing in a New Reality
Large firms are leveraging their significant capital resources to compete. Starting salaries for new accounting graduates jumped by approximately 30% in a single year (from 2022 to 2023). Major firms like EY have announced massive investments, including a $1 billion plan that features a salary hike of over 10% for its accountants.
Small and mid-sized firms are differentiating themselves by focusing on culture and flexibility, offering flexible schedules and remote work options that are highly valued by the modern workforce.
Section 4: The Next Decade - The Accountant of 2035
The confluence of the talent crisis and rapid technological advancement is fundamentally reshaping the accounting profession.
The Automation Imperative: From Compliance to Advisory
Of accountants are now providing advisory services (up from 48% in 2018)
The most significant trend shaping the future of accounting is the integration of artificial intelligence (AI) and automation into core workflows. This shift from compliance technician to strategic advisor is already well underway, with 61% of accountants now providing advisory services to their clients, a significant increase from 48% in 2018.
The "T-Shaped" Accountant: A New Competency Model
The successful professional of the next decade will be a "T-shaped" accountant, possessing both deep technical expertise in accounting and tax (the vertical bar of the 'T') and a broad set of cross-disciplinary competencies (the horizontal bar).
Critical New Competencies:
- Data Analytics and Technology: Proficiency in analyzing complex datasets and familiarity with AI-powered platforms
- ESG Reporting: Expertise in Environmental, Social, and Governance reporting and assurance
- Cybersecurity: Understanding of data protection regulations and risk management
- Soft Skills: Communication, problem-solving, and client relationship management
The Market for Services: Growth and Opportunity
Of U.S. middle-market business owners anticipate needing accounting and audit support services in the coming year
Despite the internal challenges of the talent shortage, the external market for accounting services remains robust. The global accounting services market is expected to expand from $574.5 billion in 2020 to over $734 billion by 2025.
Section 5: A Wider Lens - Is the Accounting Shortage Unique?
While other knowledge professions face similar pressures, the accounting crisis is uniquely defined by a toxic trifecta of factors:
- A high, costly, and time-consuming barrier to entry (150-hour rule)
- Direct salary competition with higher-paying business fields that recruit from the same talent pool
- A persistent public perception of the work as "boring" and unfulfilling
| Challenge Factor | Accounting | Law | Engineering |
|---|---|---|---|
| High Barrier to Entry | High: 150-hour rule creates costly deterrent | High: 3-year J.D. + bar exam | Medium: 4-year degree; licensure for some fields |
| Direct Salary Competition | High: Competes with higher-paying finance/tech | Medium: Competes with other professional careers | High: Software engineering offers high pay |
| Negative Public Perception | High: Perceived as "boring" | Medium: Mixed perception | Low: Generally positive image |
Section 6: Strategic Recommendations and Conclusion
The accounting profession stands at a critical juncture. The talent crisis demands decisive and unified action.
For Professional Bodies (AICPA, NASBA, State Societies)
- Accelerate and Standardize Licensure Reform: Work with all state boards to adopt the UAA model language (bachelor's degree plus two years of experience)
- Launch a Unified, National "Re-Branding" Campaign: Combat the outdated public image with sophisticated marketing targeting students and educators
- Scale High School and University Partnerships: Create centralized platforms connecting firms with educational institutions
For Accounting Firms (Large and Small)
- Embrace a "Total Rewards" Transformation: Move beyond salary increases to comprehensive benefits and culture improvements
- Integrate Technology as a Core Talent Strategy: Use automation to offer more engaging work from day one
- Systematically Re-engineer the Employee Experience: Address burnout through capacity planning and realistic workloads
For Academic Institutions
- Urgently Modernize Curricula: Integrate data analytics, AI applications, ESG assurance, and cybersecurity training
- Build Deep, Experiential Partnerships: Co-develop curricula with firms and embed practitioners in classrooms
- Shift from "Weed Out" to "Build Up" Pedagogy: Provide enhanced support to maximize graduate numbers
Concluding Thoughts
The current talent crisis, while painful and disruptive, is serving as a powerful and necessary catalyst for the accounting profession. The changes now underwayāthe reform of licensure, the embrace of technology, the shift to advisory services, and the renewed focus on employee well-beingāare not merely temporary responses to a shortage. They are the building blocks of a more modern, dynamic, and valuable profession.
The path forward will not be easy. It requires a sustained, collaborative effort from every stakeholder in the accounting ecosystem. Success is not guaranteed and will depend on the profession's ability to execute these bold strategies with conviction and unity. However, the opportunity for positive transformation has never been greater.