The accounting profession faces a significant and accelerating talent shortage that threatens to reshape business and government operations. This supply-demand imbalance is a structural crisis driven by demographic and regulatory pressures. Understanding this talent gap and its root causes is necessary to appreciate the profound changes underway in the financial world. The profession is actively responding, creating new opportunities for entrants.
Confirming the Scale of the Talent Gap
Data from professional bodies illustrates the severity of the accountant shortage. The number of unique candidates sitting for the Certified Public Accountant (CPA) exam declined by 33% between 2016 and 2021, indicating a significant drop in individuals pursuing the profession’s benchmark credential. This decrease is mirrored in academia. The number of students earning a bachelor’s degree in accounting fell by 7.8% in the 2021-2022 academic year, and master’s degrees saw a 6.4% decline. High attrition rates compound the problem, as turnover at CPA firms averages around 15% annually. The combination of fewer new accountants and existing professionals leaving the field is expected to create a talent gap of approximately 120,000 people by 2027.
Key Drivers of the Accountant Shortage
The Silver Tsunami and Retirement
A large portion of the current workforce is approaching retirement, creating a vacuum of experienced talent known as the “Silver Tsunami.” Approximately 75% of American Institute of Certified Public Accountants (AICPA) members are at or near retirement age. The average age of a U.S.-based CPA is between 52 and 53 years old. This demographic shift means a large wave of seasoned professionals with deep institutional knowledge will exit the profession within the next decade. The lack of younger professionals ready to step into these senior roles creates a major succession challenge for firms and corporate finance departments.
Declining Enrollment in Accounting Programs
The shrinking number of students choosing accounting majors directly contributes to the talent shortage. The profession struggles to attract younger generations, who often perceive fields like finance or technology as more appealing. This perception is reinforced because starting salaries in some competing fields have historically been higher than those offered to entry-level accountants. The general decline in U.S. university enrollment across all fields from 2012 to 2021 further exacerbates the problem for accounting.
Barriers to Entry: The 150-Hour Rule
The regulatory requirement for CPA licensure, known as the 150-hour rule, acts as a significant barrier to entry. This mandate requires candidates to complete 150 semester hours of college education, typically a fifth year of study beyond a traditional four-year bachelor’s degree. This extra year of schooling adds to the financial cost and time commitment for students, often requiring them to forgo a year of income. Research shows that the enactment of this rule correlated with a 14% overall decline in new CPAs entering the field and a disproportionately high 26% decline among minority candidates.
Perception Issues and Workload Burnout
Negative public perception—the stereotype that accounting is a tedious, compliance-focused profession—discourages potential candidates. The reality of the high-stress, cyclical workload, particularly in public accounting, contributes to high turnover and burnout among younger professionals. During peak periods like tax season, professionals at large firms can face workloads that lead to turnover rates as high as 33%. Nearly half of employees leaving their jobs cite intense hours and lack of work-life balance as primary reasons for their departure.
The Impact on Businesses and Government
The scarcity of accounting talent has profound consequences across the economy, affecting financial stability and operational efficiency for both private and public entities. Businesses struggle to fill positions, with some roles taking five weeks or more to staff, leading to operational delays. This pressure forces existing teams to take on heavier workloads, increasing the risk of burnout and subsequent errors.
The shortage compromises the integrity of financial reporting, resulting in errors in regulatory filings and delayed reports for publicly traded companies. Some companies have disclosed that attrition created weaknesses in their internal financial-reporting controls. The problem extends to the public sector, where the shortage of government finance workers is growing faster than in the private sector. This can lead to local governments being unable to file financial statements on time, potentially triggering negative credit watchlist placements and threatening essential public services.
Industry Strategies for Attracting and Retaining Talent
In response to the crisis, the accounting industry is implementing significant changes focused on making the profession more financially attractive and sustainable.
- Compensation is being rapidly adjusted. Hiring for accountants surged by 74% and salaries increased by 15% in 2024, outpacing growth rates in other high-demand fields.
- Firms are prioritizing flexible work models, such as hybrid and remote options, which address work-life balance concerns and serve as a powerful retention tool.
- Technological integration is a strategy, with firms adopting artificial intelligence and automation tools to handle repetitive, entry-level tasks. This shift allows existing accountants to focus on higher-value advisory and strategic work.
- Professional bodies like the AICPA are expanding the talent pipeline by launching new apprenticeship programs, including those for high school students, which offer an “earn and learn” model and do not require a college degree for initial entry-level roles.
Career Outlook and Opportunities for New Accountants
The current talent shortage has created a favorable environment for individuals entering the accounting profession. Job security is strong, as demand for qualified professionals far outstrips the available supply. The U.S. Bureau of Labor Statistics projects a faster-than-average employment growth rate for accountants and auditors.
The shortage is driving up starting salaries and sign-on bonuses, with base pay in public accounting projected to rise by nearly 5% across all experience levels in 2024. The nature of the work is evolving, moving beyond traditional compliance and data entry roles toward strategic advisory functions. New accountants must possess skills in data analytics and business technology. Roles like Accounting Data Analyst or Financial Planning and Analysis (FP&A) Analyst blend accounting principles with data modeling and predictive analytics, allowing professionals to directly influence business strategy and financial forecasting. This strategic shift offers a clear path for rapid advancement and competitive compensation.