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 Treasury Department and the Internal Revenue Service released
The tax credits, also known as the “technology-neutral credits,” aim to reduce energy costs and meet growing demand created by major investments in the U.S. economy.
To receive the full value of the credits, taxpayers need to meet standards for paying prevailing wages and employing registered apprentices, helping ensure more clean energy jobs are good-paying jobs, and growing career opportunities for workers in the clean energy sector. The technology-neutral Clean Electricity Production and Investment Tax Credits are also eligible for bonus credits related to siting projects in energy communities and meeting certain standards for using domestic content.
According to an
The final rules issued Tuesday provide more clarity and certainty about which clean electricity zero-emissions technologies qualify for the credits, including wind, solar, hydropower, marine and hydrokinetic, geothermal, nuclear, and certain waste energy recovery property. The Treasury and the IRS expect to soon release the first Annual Table confirming this list of qualifying technologies. The final rules also include guidance to clarify how combustion and gasification technologies can qualify in the future, including on how lifecycle analysis assessments compliant with the statute will be conducted.
“The final rules issued today will help ensure America’s clean energy investment boom continues – driving down utility costs for American families and small businesses, creating good-paying construction jobs, and strengthening energy security by making the U.S. more resistant to price shocks,” said Treasury Secretary Janet L. Yellen in a statement.
However, the new rules face pushback from the incoming Trump administration, with President-elect Trump saying Tuesday, “We’re going to try and have a policy where no windmills are being built.”
Audit and accounting data solutions provider
Cloud-based LeaseJava is designed to help audit firms, corporations and non-profit/government entities to manage their leases and ensure compliance with accounting standards such as ASC 842, IFRS 16 and GASB 87. Specifically, it supports lease modifications without the need to create a new lease, as modifications can easily be added to existing leases. The solution is made to handle complex and nuanced scenarios, computing details down to the daily level and aggregating them to manage intricate situations. Export functionality is configurable, allowing the user to select and group leases accurately. Additionally, LeaseJava offers weighted average computation and a bulk import feature to enhance ease of use.
A spokesperson with Caseware said current customers of LeaseJava will still be able to use the software they’ve been using. Meanwhile, Caseware customers will be able to purchase it in the coming months. Caseware is in the process of evaluating continued application of the LeaseJava branding relative to future product plans.
This acquisition is an example of Caseware’s continued commitment to investing in solutions that will improve the accountant’s experience while providing integrated workflow management and analytics, according to the spokesperson.
“This acquisition underscores Caseware’s commitment to enhancing its connected ecosystem, artificial intelligence strategy and the provision of an even more comprehensive suite of trusted, innovative solutions. Customers can look forward to a seamless experience and the continued evolution of the Caseware family of products, enabling them to effortlessly manage their workflows and do their jobs better than ever before,” said David Osborne, Caseware CEO.
LeaseJava is headed by Michael Cheng, who is also a partner at Frazier and Deeter LLC. Prior to that, he worked directly with the FASB as a senior project manager. He is also a current member of the FASB’s Private Company Council, one year into his three-year term.
“I co-developed LeaseJava to solve the issues I was experiencing with lease computations along with Venkat Avasarala, Partner and CEO of Acuvity Consulting. He played a key role in its development, providing strategic leadership and expertise that were instrumental in shaping the platform’s growth and success,” said Cheng. “The acquisition by Caseware marks a significant milestone for both the solution and the profession. I am confident that the Caseware team, renowned for its innovation and commitment to excellence, will enhance the capabilities of LeaseJava, providing even greater value to users. Caseware’s global footprint and unparalleled ability to deliver expertly crafted technology and domain expertise worldwide, underscores their position as an industry leader.”
Caseware’s US customers will be the first to benefit from LeaseJava. The organization also plans to extend the solution’s availability to other markets, including Canada and the UK. LeaseJava has been available for sale in the US and supports US GAAP, IFRS and GASB lease accounting, with a revised onboarding process for new customers to purchase over the coming months.
Citrin Cooperman announced today it will receive a significant investment from Blackstone, the world’s largest private equity firm, which will acquire a majority stake in the firm from New Mountain Capital.
The deal is the first instance of an accounting firm to transfer private equity ownership from one group to another in the U.S. Terms of the transaction were not disclosed.
“We are excited to have reached an agreement for Blackstone to invest in Citrin Cooperman as we enter our next chapter of growth,” Citrin Cooperman CEO Alan Badey said in a statement Tuesday. “Blackstone will help us make additional investments in expanded service offerings and technology as we deliver on our continued commitment to best-in-class firm culture and providing an exceptional client experience. We thank New Mountain for their years of partnership in helping to build and support our business.”
Allan Koltin, CEO of Koltin Consulting Group, who advised on the deal, commented: “For many in the profession, the biggest question was whether something like this could ever happen, and my belief is there will now be many other transactions like this in the future. Kudos to Citrin Cooperman, New Mountain Capital and Blackstone on making history today.”
New Mountain first
“We are proud of our successful partnership with Citrin Cooperman, and we thank the management team, partners and staff of Citrin Cooperman for all we have accomplished together over the last three years,” Andre Moura and Nikhil Devulapalli, managing directors at New Mountain, said in a statement. “We look forward to seeing Citrin Cooperman continue to thrive for the benefit of all its clients and stakeholders.”
“The Citrin Cooperman partners and staff have done an exceptional job making the firm a leader through an unwavering commitment to excellence and client service,” Eli Nagler, a senior managing director at Blackstone, and Kelly Wannop, a managing director at Blackstone, said in a statement. “We are excited to invest in the business to help it continue to provide the highest quality offerings moving forward.”
Deutsche Bank Securities is serving as financial advisor, and Kirkland & Ellis and Gibson, Dunn & Crutcher are serving as legal advisors to Blackstone. Guggenheim Securities is serving as lead financial advisor to New Mountain and Citrin Cooperman. Koltin Consulting Group is serving as an additional financial adviser to both parties. Simpson Thacher & Bartlett, Zukerman Gore Brandeis & Crossman and Hunton Andrews Kurth are serving as legal advisers to New Mountain and Citrin Cooperman.
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