As the new Managing Partner for the Bethesda office of CohnReznick, a key responsibility I have falls in the area of talent acquisition and retention. Like many other professions, the accounting industry has a significant need for both experienced and entry level professionals. This is especially true as the Baby Boomer generation approaches retirement.

There are tremendous career opportunities in public accounting. The need for accounting professionals has grown tremendously as just one in eight business majors graduate with a bachelor’s in accounting. This means there are not enough new accountants to replace those retiring. This has generated fierce competition for accounting talent with many college accounting majors receiving multiple job offers- some before they graduate. 

CohnReznick and other public accounting firms are taking action to build awareness of the significant career benefits those of us in the industry enjoy. Last year, the American Institute of Certified Public Accountants (AICPA) created the National Pipeline Advisory Group (NPAG) to develop a strategy to begin addressing the talent pipeline shortage. We in the industry need to get the word out about how fantastic a career in accounting can be and what changes are coming to make it even better in the future. 

In most states, someone sitting for the CPA Exam with a bachelor’s degree/an accounting concentration needs 150 college credit hours to be eligible for a CPA license. With some finding this onerous, there is a movement to make changes to the 150-credit hour requirement to help students launch their accounting careers faster and earlier.

While many students are pursuing certifications in other fields that require fewer credit hours and offer high entry level compensation, this doesn’t always translate to the job stability and long-term earning potential available in public accounting. In the accounting field, compensation grows exponentially with experience. And due to the high demand for talent, we’ve seen significant increases in entry level accounting salaries over the past four years. We expect the upward trend in starting salaries will continue. 

Past, present, future of accounting

The accounting profession may be suffering from an image problem of its own making. While it is true that accounting jobs may require extra hours during the traditional “busy season” and at other times of the year, the flexibility that enables accounting professionals to work when, how, and where they want has improved the profession substantially. With tech, finance, and banking positions becoming increasingly competitive, people have begun taking a second to look at accounting as a good and stable career. Our profession is actively working to change the stereotype of grueling busy season hours as being the norm. While my colleagues and I have worked hard over the course of our careers in public accounting, we have also been blessed with work schedules that have allowed me to spend much more time with my family. Paid time off is particularly generous at CohnReznick and, I imagine, with similar firms. While an old guard within the accounting industry still takes pride in touting self-sacrifice and long hours as badges of honor, many new leaders in accounting are changing that mantra and ushering in a new era of accountants who say “no” to the long hours.

Accountants love Technology

A common theme we hear is that technology will reduce the need for accountants or, at minimum, replace the number of accountants needed. This yet-to-be-seen phenomenon is likely driven by tech chatter trying to aggressively sell AI solutions. But we as accountants are clearly benefitting from new technology.

While AI and other technologies are changing the way we work, this is for the better. Technology has eliminated many routine tasks, allowing us to focus our energy on more interesting value-added service offerings. This is a positive development, not an existential threat. Accountants are harnessing technology to be faster and more efficient in our daily work lives so we can work “normal” hours each day and log off.

The day-to-day tasks for our entry-level employees are vastly different from my experience 20 years ago. Much of this is due to technological advancements and I expect that technology will continue to drive positive change in the accounting industry.

Who are accountants?

There are many misconceptions about what accountants really do. This is true of my own mother who knows that I am a tax accountant and therefore assumes I spend my day preparing personal tax returns.

In reality, most of what I do is consulting, advising, and client service related. Yes, my team and I prepare tax returns and audit financial statements. But today, accountants succeed by becoming trusted advisors to their clients and customers. An accounting background provides the experience necessary to work in a variety of industries, and roles within an industry, or in public accounting. I spend more time on calls with clients and their attorneys discussing deals and strategy than I do preparing tax returns. I’ve read that 20% of CEOs of businesses have an accounting background and/or were the CFO of the company. Accounting opens so many doors to a great career. Understanding the basics of accounting helps you along that journey.

Pipeline and the new CPA exam

I often meet with students and welcome new college hires when they join CohnReznick. I have been very impressed with the quality of students I have recently interacted with on campus at the University of Maryland, Howard University, James Madison University, American University, Catholic University, and many other great schools in the area. Schools are actively soliciting feedback on how to update their curriculum to better meet the future needs and career opportunities of their students. CohnReznick is happy to participate in those efforts. 

We are constantly looking for ways to identify candidates earlier in their academic careers so we can educate them about accounting career opportunities. The Accounting Scholars Development Program (ASDP) is a residential summer program at Howard University that gives minority community college students a glimpse of university life and the accounting profession. ASDP offers a range of academic and professional activities that promote transfer to a bachelor's degree-granting institution to be eligible for the CPA license. 

Another great way we are connecting with students is the Virginia Society of CPAs’ (VSCPA) CPAs in the Classroom initiative. One of my partners, and current chair of the VSCPA Board, Christine Williamson says this about the program, “CPAs in the Classroom gets CPAs in front of students while they’re still in high school and haven’t yet decided on a major. This program gives us an opportunity to talk about what we love about being a CPA while giving back to the profession. The VSCPA has set a goal of reaching 115 classrooms during the 2024-25 academic year. Just think how many students we can reach if we’re able to achieve that!” 

Recognizing the need to attract more candidates, the AICPA and the National Association of State Boards of Accountancy (NASBA) led a CPA Evolution initiative several years ago, culminating in the launch of a new CPA Exam in 2024. The new exam format includes three core sections on universal auditing, accounting, and tax with one additional section the candidate can choose that focuses on business analysis/reporting, information systems, or tax compliance. The goal of CPA Evolution is to attract more candidates into becoming CPAs, specifically those with an interest in technology. It’s still early, but so far, the response has been positive. 

Get on the accounting bandwagon 

Public accounting has been good to me and there is even more opportunity for the next generation. It is one of few career paths where a middle-class kid can leverage a public university education into being an equity owner of a billion-dollar firm like CohnReznick in less than 15 years with a little hard work. 

We, and others in our profession, must continue to get the word out. We have expanded the schools that CohnReznick recruits from. We identify candidates earlier in their academic careers and actively engage nontraditional candidates. These may be students for which accounting is a second career, first generation college students, or community college transfer students. This has resulted in more diverse entry-level classes.

I just need to figure out how to turn this message into a TikTok video.