Tackling the accounting shortage

Welcome to fall, the weather is cooler and it’s football season! I love the changing colors of the leaves at this time of year. I moved to Oregon from Tennessee 40 years ago and appreciate the cooler weather of the Pacific Northwest.

Students are back in class, both at K-12’s and at college. I thought I was done having children in school, but my son has started law school in his mid-thirties, attending my alma mater, Willamette University. I wish success to all students and well-being to the parents, especially the first-time empty nesters.

With students back in college, recruiting events are ramping up. The OSCPA had its Career Showcase at the Oregon Convention Center. It was a great evening with 22 exhibitors and about 90 accounting students and recent grads. Additionally, universities are hosting “meet the firms” events on campus. I enjoy seeing students’ excitement as they anticipate graduation and consider all their employment choices, from large to small firms to opportunities in industry and government.

From the employer angle, the spotlight continues to be on the talent pipeline. The final report from the National Pipeline Advisory Group was issued in July. My view of the pipeline challenge is to fill the pipeline with accounting students and then avoid leakage as students finish college and begin employment. The National Pipeline Advisory Group identified that by the time students get to college, they have often decided their major, so getting students interested in accounting careers at the high school level is key. I’m developing my own personal schedule for classroom visits and encourage others to do the same.

A recent article in the Journal of Accountancy shared how academia is tackling the accounting talent shortage. I heard professors and students at the Career Showcase mention some promising themes. There is recent growth with enrollment in accounting majors, and more students are entering college knowing they want to major in accounting. Colleges are also placing their best professors in the introductory accounting classes to keep students interested and engaged. These are positive changes we need to continue to support.

Why do some students not want to major in accounting? A survey by the Center for Audit Quality lists 13 reasons. While any one reason scores only 20-30% as a major reason, all score high as part of the reason.

Source: Increasing Diversity in the Accounting Profession Pipeline: Challenges and Opportunities, CAQ/Edge Research, July 2023.

No one factor is causing the pipeline challenge. For example, the 150-hour requirement was about as important as not being good enough at math. It is the cumulative weight of all factors that contribute to students not choosing accounting as a major. Improving work-life balance, increasing starting salaries, and removing barriers to licensure will all help.

Some factors appear to stem from inaccurate perceptions of what accountants do. A “lack of variety in career paths” was listed as a deterrent to choosing an accounting major, though most working CPAs will tell you accounting is the language of business and opens many doors. We need to tell a more compelling story about accounting careers. As AICPA Board Chair Carla McCall has said, “We need to promote the cool work we do.”

Every person reading this has a story to tell. I invite you to consider sharing your story with a classroom of young people. You don’t need to be a professional speaker. You just need to be grateful for your career and proud of the people you’ve helped. Then, speak from your heart. With students back in school, now is the season to take advantage of opportunities in our communities to build interest in accounting, strengthen the profession, and prepare for the future.

John

John Hawkins, JD, CPA
2024-25 Chair, OSCPA Board of Directors
ChairJohn@orcpa.org