Parents, guidance counselors, and schoolteachers typically steer young students toward careers that offer job security, the ability to earn a competitive income, and careers that are in demand. On the other hand, students often find themselves looking for a career that delivers security and income but is also personally rewarding, offers flexibility, and is culturally in line with their values.

Accounting meets these career requirements: a stable career, attractive long-term compensation, and work that makes a difference. Unfortunately, that message isn’t getting through to students, as evidenced by a 2023 Wiley study of college graduates showing that only one in eight business majors graduate with an accounting degree. This failure to attract more business majors is not only the result of a messaging disconnect, but also the outcome of real issues we must collectively address to attract more people to a career in accounting and then on to obtaining a CPA license.

NPAG Takes on Pipeline Shortage

We are experiencing a shortage of new candidates entering the pipeline, while the rate and type of turnover among those already in the profession have become a starker concern. Many factors are contributing to a shrinking pipeline, ranging from demographic shifts to economic and business model transformations—and there are potentially hundreds of solutions. The challenge is to identify and develop the right combination of solutions, unify the key stakeholder groups, and marshal the resources of our entire profession to execute solutions and grow the pipeline. This is the focus of the National Pipeline Advisory Group (NPAG).

Convened by the AICPA in July 2023, the goal of the 22-person NPAG is to create a national strategy for strengthening the accounting pipeline. By engaging professionals throughout the profession and exploring a wide range of topics, NPAG developed a data-driven strategic plan draft that was released in May. To get to this point, NPAG has been working with independent facilitator Jennifer Wilson and her team at ConvergenceCoaching LLC, and also engaged a third-party firm to manage a national survey.

NPAG is among several initiatives working to build a sustainable accounting talent pipeline, including the National Association of State Boards of Accountancy (NASBA) Professional Licensure Task Force (go to https://nebraska-cpa.thenewslinkgroup.org/nasba-task-force-considers-new-path-to-licensure/ for more information on NASBA’s Professional Licensure Task Force) and a joint effort by the American Accounting Association (AAA) and the National Association of Black Accountants (NABA). As NPAG’s chair, I often say, “We’re all in this together, and we’ll need to work together to address issues affecting our profession. We all want the same thing—a strong accounting pipeline.”

Understanding Pipeline “Leaks” Causing the Shortage

The accounting pipeline crisis is especially complex because of the many root causes inside and outside the profession. Before meaningful solutions can be identified and addressed, understanding where the problem stems from is essential.

At the onset of NPAG’s discussions, identifying and learning about the root causes of the pipeline shortage was instrumental. Through a data-driven process, we identified several root causes and market forces, including but not limited to:

• Shifting demographics and lower birth rates;
• Under-representation of certain diverse groups and minorities;
• The cost and time of college and university education and questions about the return on investment; and,
• Lagging starting salaries and concerns over workplace culture.

Basic demographics have a lasting impact on the labor market. Data from the Federal Reserve Bank of Kansas City (“Lower Labor Force Participation Rates and Slower Population Growth Pose Challenges for Employers,” March 2022) notes slowing population growth over the past seven decades, with several states experiencing population declines, and even more pressure seen recently as the retirement of baby boomers was accelerated during the pandemic.

In light of the demographic shifts in the population, it is more important than ever to focus on high school and college initiatives, to encourage more students to consider accounting as a profession, and to find new ways to support students through graduation and into the workplace.

Now Is the Time for the Profession to Unite and Take Action

NPAG is made up of members from academia, the regulatory community, business and industry, accounting firms of all sizes, and State CPA Societies, with the intent of representing a diverse set of perspectives and insights into the complex talent shortage issue. However, the solution will require the awareness and participation of accountants, CPAs, academics, and others throughout the profession on a broad scale. We all have a role to play.

In partnership with State CPA Societies and AICPA, NPAG conducted a national survey of those in the profession and an additional survey of students to help prioritize potential strategies, gathering 1,600 poll results from around the country. The results indicate that many people feel an accounting career is more challenging than other professions due to the perception of a high volume of work and long hours. Poll results also reveal concerns over salaries, the difficulty of the CPA Exam, and the requirements for CPA licensure, including inconsistency over the additional 30 hours required. Polling also indicated that pipeline solutions should prioritize high school, college, and the graduation journey.

NPAG’s website, AccountingPipeline.org, should be your first stop for information. While you’re there, be sure to sign the Pipeline Pledge to make an individual commitment to participate in at least two activities annually that will positively impact the talent pool.

The accounting pipeline shortage has reached a critical point, and now is the time to act. In the coming years, the accounting profession will benefit from positive changes in areas including academia, the workplace, licensing, and government oversight—and NPAG is hoping you’ll join in shaping this next chapter.

Lexy Kessler, CPA, CGMA, is chairman of the National Pipeline Advisory Group. She is the Mid-Atlantic Regional Leader for Aprio and is a member of the board of directors of the Association of International Certified Professional Accountants (AICPA).

Reprinted with permission of The Georgia Society of CPAs.