Briefing Points

  • To address the shortage of accounting talent, the National Accounting Talent Pipeline Advisory Group (NPAG), composed of accounting industry stakeholders, has proposed several specific recommendations, including shortening the time and cost required to become a Certified Public Accountant (CPA) and increasing starting salaries. The group was established a year ago, and its recommendations are detailed in a final 95-page report organized around six macro themes that need fixing.
  • Key issues NPAG calls on the industry to act on include: enhancing the appeal of the academic experience, addressing the time and cost of education required to become a CPA, increasing support for CPA exam candidates, expanding access to the profession for underrepresented groups, improving business models and culture to enhance employee experience, and telling a more "compelling" story about the accounting profession to replace "outdated messaging that emphasizes negatives over positives and is full of misconceptions."
  • Lexy Kessler, NPAG chair, CPA, and Mid-Atlantic region leader at Aprio, stated that all stakeholders in the accounting industry need to work together to implement these strategies. In the report, she noted that the impact of the talent shortage extends far beyond the accounting industry itself. Kessler wrote: "The shortage of accounting professionals has transcended being a workforce issue; there is widespread concern across the industry that the talent shortage is leading to delays and challenges in U.S. corporate financial reporting, which is alarming and increases the urgency for action."

Deep Insights

The report was released two months after a draft report, which contained similar themes, was issued by an independent working group convened by the American Institute of CPAs (AICPA) last July.

NPAG aims to address the shrinking pool of accounting professionals in the U.S., while CFOs and finance department recruiters have been struggling to find the talent needed to complete closings, audits, and ensure company finances comply with GAAP and other regulatory requirements.

Consistent with the draft report, the final report opens the door to controversial proposals brewing in various states to modify licensing rules. Currently, states typically require CPAs to complete 150 college credits (equivalent to a fifth year of college), while some proposals offer alternative paths allowing licensure with just a bachelor's degree plus a certain amount of work experience.

The report states: "Given the evolving market dynamics, NPAG is moving quickly to build a set of actionable concepts to supplement existing licensure options, thereby growing and future-proofing the CPA license."

At the same time, the report notes that licensure changes need to consider their impact on mobility, which refers to the ability of CPAs to practice in different states because existing licensure requirements are largely consistent.

The report states: "NPAG envisions that the evolution of licensure will include a common competency framework as a foundation." It adds that, due to a series of ongoing activities on this issue, there may be further developments not reflected in the report.

For example, legislation proposed in Minnesota this year would have allowed CPAs in the state to obtain licensure with just 120 college credits and two years of work experience, but the bill stalled in the state legislature (as previously reported by CFO Dive). The Minnesota Society of CPAs is seeking to leverage growing national interest in such initiatives to push the bill through next year.

Looking ahead, Kessler wrote that the proposed initiatives in the report will require significant time and industry unity to implement. In the report, she stated: "While stakeholders implement the first-year strategies, they must also continue planning for years three, five, and beyond."