Accounting
The accounting shortage crisis: Do we need a paradigm shift?
The accounting profession is facing an enormous shortage, with recent projections showing that we could have a deficit of up to 3.5 million accountants by 2025. This is a big problem for the industry and poses a risk to financial reporting and compliance across various industries. The crisis is largely driven by an aging workforce, a decline in the number of new graduates entering the field, and a skills gap exacerbated by technology that is developing rapidly but not necessarily being harnessed in the correct way alongside regulatory changes.
On the education side, the number of candidates taking the CPA exam decreased by nearly
There are lots of potential solutions to dig into that have been discussed by industry professionals to get this paradigm shift in motion. From automation to cloud solutions to data analysis, there are plenty of businesses to work with. Let’s dive into how leveraging technology through specialized software and artificial intelligence can avert the crisis.
The impact on corporations and how technology can be a solution
The shortage of qualified accountants has already impacted corporations in various ways. Companies are struggling to fill the most important positions, leading to increased workloads for existing staff and reducing the quality of financial reporting and compliance. On top of that, the shortage is
Additionally, one of the often unspoken downsides of the scarcity of accounting talent is that it can bump up salaries, which while being great for those individuals who benefit, obviously has a negative effect on operational costs for businesses. In some cases, companies can be forced to rely more heavily on external consultants, which is very costly and much more time-consuming than an in-house professional.
To address the accounting shortage, technology offers a potential avenue in the form of automation, cloud solutions and advanced data analytics. Automation can handle routine tasks such as data entry and basic reporting, which leaves more space for accountants to focus on more complex and strategic activities. Cloud-based accounting platforms can then provide scalability and flexibility, which allows firms to streamline their operations and reduce costs. These platforms can also facilitate real-time access to financial data to make more timely decisions.
Advanced data analytics can improve risk management and decision-making processes, whereby sophisticated algorithms and data modeling techniques can give companies better predictions of financial outcomes and the opportunity to identify potential risks at an early stage. This analytical capability could be crucial for maintaining financial stability and compliance, particularly where there are increasing regulatory changes popping up at any given moment
The implementation of AI in accounting is still evolving, so it is not a surefire problem eraser, and current applications need to focus on augmenting rather than replacing human expertise. The adoption of AI and other technologies is expected to keep growing —
Strategic adaptations that firms can consider
While technology can alleviate some of the pressures, it also presents a challenge by potentially reducing the number of entry-level positions available. And we do not want to diminish the pipeline of future senior accountants and managers.
To address these issues, some experts suggest the profession needs a rebranding to attract new talent. However, this must be done carefully to ensure new entrants have a realistic understanding of the field. Efforts to make accounting education and certification more aligned with technological advancements could also help. For example, making some changes to the CPA exam and accounting curricula to emphasize technology and data analytics could make the profession more appealing and relevant to a younger, broader set of professionals.
If firms are honest with themselves, they find that half of the tasks within any given firm don’t require a CPA’s expertise. These tasks are often repetitive and can potentially frustrate a CPA who wants to focus on client-facing work and more challenging work.
Ultimately, the key to overcoming the accounting shortage can boil down to a fundamental shift in how accountants are trained and utilized. The focus needs to shift from routine compliance tasks to strategic, technology-driven roles that still add value to the business without wasting time on necessary tasks. To achieve this, we need a coordinated effort from all within the industry to recognize we are on a dangerous path and need schools and industry leaders to start making changes.
Aprio, a Top 25 Firm based in Atlanta, has acquired JMS Advisory Group, a firm that specializes in unclaimed property compliance and escheat process development, also based in Atlanta
Financial terms of the deal were not disclosed. Aprio ranked No. 24 on Accounting Today’s just released
JMS was founded in 2006 and helps clients mitigate risk and capitalize on opportunities through managed unclaimed property compliance. The team includes attorneys, CPAs, CFEs and others.
JMS has a wide range of clients, including enterprise companies, financial institutions, credit unions, insurance companies, hospitality and health care organizations.
“As Aprio continues its rapid growth, we are committed to expanding our services to meet the evolving needs of our clients,” said Aprio CEO Richard Kopelman in a statement Tuesday. “The addition of JMS gives us the opportunity to continue strengthening our position as a future-focused advisory firm. JMS’s focus on escheat management and asset recovery not only enhances our current capabilities but also allows us to deliver even more impactful solutions to help businesses navigate complex compliance challenges.”
JMS president and CEO James Santivanez is joining Aprio as a partner and provides guidance to clients on unclaimed property and state and local tax issues.
“We created JMS to make an impact nationally in the unclaimed property consulting industry, and I’m proud of our nearly 20-year history of helping clients mitigate risk and capitalize on opportunities resulting from accurate and properly managed unclaimed property compliance,” Santivanez said in a statement. “Joining with Aprio takes us to the next level, allowing us to build upon our success while providing even greater value to our clients. This is an exciting next step in our journey.”
JMS founder and director Sherridan Santivanez is also joining Aprio as a partner. He specializes in representing clients before state enforcement authorities and managing complex audits and voluntary disclosures for some of the world’s largest companies. She provides strategic guidance on audit preparation and navigates interactions with state and third-party auditors.
Aprio received a
The American Institute of CPAs and the National Association of State Boards of Accountancy are asking for comments on their proposal for an additional pathway to CPA licensure through
The AICPA and NASBA proposed the
The UAA changes would:
- Enable states to adopt a third licensure pathway that requires earning a baccalaureate degree with an accounting concentration, completing two years of professional experience as defined by Board rule, and passing the Uniform CPA Examination;
- Shift to an “individual-based” mobility model, which allows CPAs to practice in other states with just one license; and
- Add safe harbor language to ensure CPAs who meet existing licensure requirements preserve practice privileges.
The proposals come as several states are already moving forward with their own changes, including
The updates reflect feedback gathered during a late 2024 exposure draft period and forward-looking solutions being advanced by state CPA societies and boards of accountancy to increase flexibility for licensure candidates while maintaining the integrity of the CPA license.
The AICPA and NASBA are asking for comments on the proposed changes by May 3, 2025. They can be submitted through this
The UAA offers state legislatures and boards of accountancy a national model they can adopt in full or in part to meet the licensure needs of each jurisdiction.
The proposal would maintain the current two pathways to CPA licensure:
- Earning a post baccalaureate degree with an accounting concentration, completing one year of professional experience as defined by Board rule, and passing the CPA exam; and,
- Earning a baccalaureate degree with an accounting concentration, plus an additional 30 semester credit hours , completing one year of professional experience as defined by Board rule, and passing the CPA exam.
Small business employment held steady last month, according to payroll company Paychex, while wage growth continued below 3%
The
“Our employment data continues to show moderate job growth and wage growth below three percent,” said Paychex president and CEO John Gibson in a statement Tuesday. “The consistent long-term trend we’re seeing is a small business labor market that is resilient and stable with little job movement among workers. At the same time, small business owners are optimistic about future business conditions despite uncertainty about how to adapt to a rapidly evolving legislative and regulatory landscape.”
The Midwest remained the top region in the country for the ninth consecutive month with a jobs index level of 100.54. Seven of the 20 states analyzed gained more than one percentage point in February, led by Texas (up 2.11 percentage points).
Phoenix (101.92) increased its rate of small business job growth for the fourth month in a row in February to rank first among the largest U.S. metros.
Construction (3.29%) regained its top spot among industries in terms of hourly earnings growth in February, followed closely by “other services” (3.27%) and manufacturing (3.21%).
The pace of job growth in manufacturing gained 2.39 percentage points to 99.52 in February, the industry’s biggest one-month increase since April 2021.
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