Accounting
The decline in accounting majors: What’s behind the shift?
In recent years, higher education has seen a marked decline in the number of students pursuing accounting degrees, a trend that raises concerns for the profession’s future.
According to the American Institute of CPAs, the number of accounting graduates dropped by nearly 17% between 2016 and 2020, and the number of candidates sitting for the CPA exam has decreased by 27% over the past decade. This decline is the result of changed perceptions of the profession, more rewarding alternative career paths, and broader challenges affecting higher education.
Failure of universities to address these changes risks further erosion of their student base. Before college administrators can implement changes to reverse this trend, critical reflection and understanding of the changes underlying the decline are essential. Accordingly, below I will address each of the factors contributing to this issue.
Changed perceptions of the accounting profession
Until recently, accounting has often been associated with high job security, competitive salaries, and career advancement. However, today’s students are drawn to careers that are perceived as more dynamic, offering greater opportunities for growth and innovation. Professions such as finance, marketing and entrepreneurship are seen as more creative, impactful and future-oriented. In contrast, accounting has become associated with routine, rule-bound activities, and limited opportunities for applying critical thinking or adaptive learning to complex decision-making.
Moreover, technological advances — including automation, artificial intelligence, and robotics — have raised concerns about the viability of traditional accounting jobs. The U.S. Bureau of Labor Statistics estimates that employment in bookkeeping, accounting and auditing will decline by 5% from 2022 to 2032 due to automation. Consequently, students are increasingly skeptical about the long-term value of pursuing a degree in accounting when compared to other fields that seem less susceptible to obsolescence.
Influence of other business disciplines
Accounting requires considerable knowledge of tax codes and regulatory reporting frameworks. However, compared to finance, which also involves a numbers-oriented and analytical focus, accounting lacks the appeal of careers in investment banking, private equity, or portfolio management. The average salary for investment bankers in the U.S. is approximately $133,000 per year, significantly higher than the $77,250 median salary for accountants and auditors reported by the Bureau of Labor Statistics in 2022.
Similar opportunities abound in fields like data science and business analytics, which students view as more tech-oriented and futuristic. For example, the global market for data science is projected to grow to $103 billion by 2027, with professionals in this field commanding starting salaries often exceeding $100,000. These disciplines also offer greater prestige and the potential for significant financial rewards, making them a major draw for students deciding between business majors.
The financial burden of higher education
Given the rising cost of college tuition, students are increasingly considering the return on investment of their chosen degree. According to the Education Data Initiative, the average cost of a four-year public college education in the U.S. has risen to over $25,000 annually for in-state students, with private institutions exceeding $54,000 annually. In this context, accounting degrees are often viewed as less financially rewarding compared to alternative business disciplines with quicker or more lucrative career trajectories.
Additionally, accounting students face the significant financial and time investment required to become a CPA. Most states require 150 credit hours for CPA licensure, which often necessitates additional coursework beyond a bachelor’s degree. Furthermore, the CPA exam has a notoriously low pass rate of approximately 50%, adding further risk and uncertainty for prospective accounting majors.
This combination of costs and challenges makes accounting a less attractive option when compared to other business paths that do not require comparable post-graduate certification hurdles.
What universities can do
If accounting is to survive as a viable career path — a viability with important implications for the future of American and global business — business schools must adopt a more proactive stance in addressing the current decline. Administrators must modernize accounting curricula to incorporate elements of artificial intelligence, data analytics, and blockchain. Emphasizing these technologies would elevate accounting as a science, potentially earning it STEM (Science, Technology, Engineering, and Mathematics) designation. This shift could help reframe accounting as a forward-thinking and innovative discipline.
Furthermore, universities should highlight the global nature of accounting work and its strategic importance to a variety of organizations, including startups, nonprofits, and multinational corporations. By showcasing the diverse opportunities available to students through an accounting degree, schools can attract those who might otherwise pursue alternative business majors.
To complement these efforts, the CPA certification process should be streamlined. Replacing the additional 30 credit hours most states require for CPA licensure with alternative internship experiences would reduce the financial burden of post-graduate education while providing students with practical experience essential for job success. Offering internships as undergraduate credit would not only lower costs but also enhance students’ readiness for the workforce.
Conclusion
A combination of shifting perceptions, evolving career interests, and financial pressures underlies the decline in the number of students pursuing accounting degrees. Nonetheless, accounting remains a critical component of business, serving as the language for communicating financial results. Moreover, with the retirement of an older generation of accountants and the ongoing demand for qualified professionals, opportunities in the field are likely to grow.
Reversing the trend will require a significant commitment by business schools to modernize curricula, incorporate emerging technologies, and educate students about the promising career paths arising from these advancements. By making these changes, administrators can ensure that accounting remains at the forefront of business education and continues to attract a new generation of highly motivated professionals.
The House unanimously passed four bipartisan bills Tuesday concerning taxes and the Internal Revenue Service that were all
- H.R. 1152, the Electronic Filing and Payment Fairness Act, sponsored by Rep. Darin LaHood, R-Illinois, Suzan Delbene, D-Washington, Randy Feenstra, R-Iowa, Brad Schneider, D-Illinois, Brian Fitzpatrick, R-Pennsylvania and Jimmy Panetta, D-California. The bill would apply the “mailbox rule” to electronically submitted tax returns and payments to allow the IRS to record payments and documents submitted to the IRS electronically on the day the payments or documents are submitted instead of when they are received or reviewed at a later date. The AICPA believes this would offer clarity and simplification to the payment and document submission process while protecting taxpayers from undue penalties.
- H.R. 998, the Internal Revenue Service Math and Taxpayer Help Act, sponsored by Rep. Randy Feenstra, R-Iowa, and Brad Schneider, D-Illinois, which would require notices describing a mathematical or clerical error to be made in plain language, and require the Treasury to provide additional procedures for requesting an abatement of a math or clerical error adjustment, including by telephone or in person, among other provisions.
- H.R. 517, the Filing Relief for Natural Disasters Act, sponsored by Rep. David Kustoff, R-Tennessee, and Judy Chu, D-California. The process of receiving tax relief from the IRS following a natural disaster typically must follow a federal disaster declaration, which can often come weeks after a state disaster declaration. The bill would provide the IRS with authority to grant tax relief once the governor of a state declares either a disaster or a state of emergency and expand the mandatory federal filing extension under Section 7508(d) of the Tax Code from 60 days to 120 days, providing taxpayers with more time to file tax returns after a disaster.
- H.R. 1491, the Disaster related Extension of Deadlines Act, sponsored by Rep. Gregory Murphy, R-North Carolina, and Jimmy Panetta, D-California, would extend the amount of time disaster victims would have to file for a tax refund or credit (i.e., the lookback period) by the amount of time afforded pursuant to a disaster relief postponement period for taxpayers affected by major disasters. This legislative solution would place taxpayers on equal footing as taxpayers not impacted by major disasters and would afford greater clarity and certainty to taxpayers and tax practitioners regarding this lookback period.
“The AICPA has long supported these proposals and will continue to work to advance comprehensive legislation that enhances IRS operations and improves the taxpayer experience,” said Melanie Lauridsen, vice president of tax policy and advocacy for the AICPA, in a statement Tuesday. “We are pleased to work closely with each of these Representatives on common-sense reforms that will benefit taxpayers, tax practitioners and tax administration and we’re encouraged by their passage in the House. We look forward to continuing to work with Congress to improve the taxpayer experience.”
The bills were also included in a recent Senate
The House also passed two other tax-related bills Tuesday that weren’t endorsed in the recent AICPA letter.
- H.R. 1155, Recovery of Stolen Checks Act, sponsored by Rep. Nicole Malliotakis, R-New York, would require the IRS to create a process for taxpayers to request a replacement via direct deposit for a stolen paper check. If a check is determined to be stolen or lost, and not cashed, a taxpayer will receive a replacement check once the original check is cancelled, but many taxpayers are having their replacement checks stolen as well. Taxpayers who have a check stolen are then unable to request that the replacement check be sent via direct deposit. The bill would require the Treasury to establish processes and procedures under which taxpayers, who are otherwise eligible to receive an amount by paper check in replacement of a lost or stolen paper check, may elect to receive such amount by direct deposit.
- H.R. 997, National Taxpayer Advocate Enhancement Act, sponsored by Rep. Randy Feenstra, R-Iowa, would prevent IRS interference with National Taxpayer Advocate personnel by granting the NTA responsibility for its attorneys. In advocating for taxpayer rights, the National Taxpayer Advocate often requires independent legal advice. But currently, the staff members hired by the National Taxpayer Advocate are accountable to internal IRS counsel, not the Taxpayer Advocate, creating a potential conflict of interest to the detriment of taxpayers. The bill would authorize the National Taxpayer Advocate to hire attorneys who report directly to her, helping establish independence from the IRS.
House Ways and Means Committee Chairman Jason Smith, R-Missouri, applauded the bipartisan House passage of the various bills, which had been unanimously passed by the committee.
“President Trump was elected on the promise of finally making the government work better for working people,” Smith said in a statement Tuesday. “This bipartisan legislation helps fulfill that mandate and makes improvements to tax administration that will make it easier for the American people to file their taxes. Those who are rebuilding after a natural disaster particularly need help filing taxes, which is why this set of bills lightens the load for taxpayers in communities struck by a hurricane, tornado or some other disaster. With Tax Day just a few days away, we must look for common-sense, bipartisan ways to make filing taxes less of a hassle.”
By streamlining tasks such as risk assessment, control testing, and reporting, gen AI has the potential to increase efficiency across the entire SOX lifecycle.
House passes tax administration bills
Trump tariffs’ effect on consumer prices debated by economists
In the blogs: Many hats
New 2023 K-1 instructions stir the CAMT pot for partnerships and corporations
The Essential Practice of Bank and Credit Card Statement Reconciliation
Are American progressives making themselves sad?
-
Economics5 days agoPCE inflation February 2025:
-
Personal Finance6 days agoStudent loans could be managed by the Small Business Administration
-
Economics6 days agoWhite House denials over the Signal snafu ring hollow
-
Economics5 days agoYoung Americans are losing confidence in economy, and it shows online
-
Personal Finance6 days agoMillions of student loan borrowers past-due after bills restarted: Fed
-
Economics4 days agoConsumer sentiment worsens as inflation fears grow, University of Michigan survey shows
-
Accounting4 days agoIRS sets new initiative with banks to uncover fraud
-
Personal Finance1 week agoTreasury scraps reporting rule for U.S. small business owners