Accounting
There’s an accountant shortage, but will 150-hour alternatives fix it?
There are
Accounting firms are struggling to meet this demand, and they’re turning away work. As a result, many small businesses can’t afford a CPA, which harms our economy. Without access to financial advice, small businesses suffer and many fail.
Our job as CPAs is to protect the public — it’s in the name “Certified Public Accountant.” But we can’t protect the public if there aren’t enough qualified accountants to do the job.
The talent shortage is a problem that’s catching up with us, and we can’t ignore it anymore.
So, what’s causing the shortage? There are many factors, but one of the most obvious and well-studied is the 150-hour rule. Since its introduction in the late ’80s, the 150-hour rule requirement has been adopted by all 50 states and U.S. territories, with the
In effect, the 150-hour rule is a required fifth year of college, often in the form of a master’s degree, and it’s proven to be a significant barrier to attracting new talent into the profession.
The rulemakers intended to raise standards and ensure CPAs acquired the right skills and knowledge to meet client needs. It was also implemented during a time of surplus talent — we had plenty of CPAs.
Forty years later, the situation has changed. The rule is discouraging many students from pursuing an accounting career. We’re seeing the lowest number of CPA exam candidates
Limited access for underrepresented groups
Accounting has historically been one of the most reliable pathways into the upper-middle class. But that path is becoming less clear. That’s because we’ve tied success in our profession to an increasingly expensive system of traditional higher education.
The 150-hour education requirement is the equivalent of a five-year degree. While it’s “only” one additional year of schooling, it puts a significant financial strain on students and their families. It also delays entry into the workforce and the ability to start earning a salary, adding considerable opportunity cost to becoming a CPA.
For many aspiring CPAs, the additional education may not make economic sense compared to a four-year degree in a different business major.
The 150-hour requirement’s rigid structure also offers little flexibility. It’s not ideal for neurodiverse students who struggle in traditional learning environments. Many of these students benefit more from hands-on experience with the space to learn at their own pace than a lecture-based classroom model used in most traditional accounting education programs.
The 150-hour rule also limits our profession’s diversity. A recent study published in the
What’s the alternative?
We must consider alternatives to the 150-hour rule to improve the accountant talent pipeline. A pathway to a bachelor’s degree paired with two years of practical experience appeals to a more diverse range of candidates while lowering the financial barriers that hold them back from entering the field. In our profession, practical experience often proves to be more valuable than time in a classroom.
To maintain high standards, we should focus on making the CPA exam more rigorous rather than relying on an extra year of schooling to measure competency.
We’re already seeing some states take action.
Minnesota is also considering a
These efforts reflect the growing recognition that the accounting profession must adapt to meet the needs of a modern, more diverse workforce.
If you’re a part of the accounting community or are considering becoming a CPA, now is the time to stay informed of upcoming changes in your state and help push the profession into the future. Engage with your local state representatives to discuss alternatives to the 150-hour education requirement and push for much-needed change.
Together, we can create and support a diverse and inclusive pool of highly skilled and knowledgeable professionals ready to lead a new era of accounting.
CrowdStrike Holdings Inc. said U.S. officials have asked for information related to the accounting of deals it’s made with some customers and said the cybersecurity firm is cooperating with the inquiry.
The Austin, Texas-based company said in a filing Wednesday that it has gotten “requests for information” from the U.S. Department of Justice and the Securities and Exchange Commission “relating to the company’s recognition of revenue and reporting of ARR for transactions with certain customers.” ARR refers to annual recurring revenue, a measure of earnings from subscriptions.
The company said the federal officials have also sought information related to a CrowdStrike update last year that crashed Windows operating systems around the world.
“The company is cooperating and providing information in response to these requests,” the filing states.
U.S. prosecutors and regulators have been investigating a $32 million deal between CrowdStrike and a technology distributor, Carahsoft Technology Corp., to provide cybersecurity tools to the Internal Revenue Service, Bloomberg News first reported in February. The IRS never purchased or received the products, Bloomberg News
The investigators are probing what senior CrowdStrike executives may have known about the $32 million deal and are examining other transactions made by the cybersecurity firm, Bloomberg News
Asked for comment about the filing, CrowdStrike spokesperson Brian Merrill said, “As we have told Bloomberg repeatedly, this is old news and we stand by the accounting of the transaction.”
A lawyer for Carahsoft previously declined to comment on the federal investigations, and representatives didn’t respond to subsequent requests for comment about them.
Tech titan Elon Musk ratcheted up his offensive against Donald Trump’s signature tax bill on Wednesday, urging that Americans contact their lawmakers to “KILL” the legislation.
“Call your Senator, Call your Congressman,” Musk wrote in a
The post came one day after Musk lashed out at the tax bill, describing it as a budget-busting “disgusting abomination” as Republican fiscal hawks stepped up criticism of the massive fiscal package.
Trump hasn’t publicly responded to Musk’s comments, but the White House put out a statement Wednesday saying the legislation “unleashes an era of unprecedented economic growth.”
And House Speaker Mike Johnson told reporters that Musk is “dead wrong” about the bill and that the tax cuts will pay for themselves through economic growth.
Musk’s public condemnation pits him against the president at a critical time as Trump is personally lobbying holdouts on the bill. His campaign against the legislation threatens to stiffen resistance and delay enactment of the tax cuts and debt ceiling increase.
Musk has attacked the legislation days after leaving a temporary assignment leading the administration’s Department of Government Efficiency initiative to cut federal spending. The Tesla Inc. chief executive officer’s high-profile role in the Trump administration eroded his business brand and sales of his company’s electric vehicles plunged.
The House-passed version of the tax and spending bill would add $2.4 trillion to U.S. budget deficits over the next decade, according to an
The CBO’s calculation reflects a $3.67 trillion decrease in expected revenues and a $1.25 trillion decline in spending over the decade through 2034, relative to baseline projections. The score doesn’t account for any potential boost to the economy from the bill, which Johnson and Trump argue would offset the revenue losses.
Musk, the world’s richest man with a net worth of about $377 billion according to the Bloomberg Billionaires Index, has become a crucial financial backer of the Republican party. After making modest donations most years, Musk became the biggest U.S. political donor in 2024, giving more than $290 million.
Johnson said Musk had promised to help reelect Republicans just a day before savaging Trump’s bill. Musk did not respond to a request for comment.
Most of Musk’s giving was aimed at electing Trump but he also supported congressional candidates. America PAC, the super political action committee that Musk largely funded, spent $18.5 million in 17 separate House races. Though that total pales in comparison to the roughly $255 million he spent backing Trump, the spending means a lot in a congressional election, where challengers on average raise less than $1 million.
Control of the House will likely be decided by the outcome of fewer than two dozen close races in the 2026 midterm elections. The GOP’s chances of holding their majority would suffer a major blow if Musk were to withdraw his financial support.
Three private equity-backed firms have made deals: Carr, Riggs & Ingram has expanded into East Texas by merging in Axley & Rode; UHY is continuing its expansion in St. Louis by adding Sabino & Co.; and Prosperity Partners moved into Vermont by adding Danaher, Attig & Plante. Meanwhile, Top 100 Firm Sensiba has acquired Australia-based cybersecurity audit and risk assurance firm AssuranceLab.
Can AI predict Supreme Court rulings?
Stocks making the biggest moves after hours: FIVE, MDB, VRNT
CrowdStrike says DOJ, SEC sent inquiries on firm accounting
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?
-
Economics1 week agoElon Musk says Trump’s spending bill undermines the work DOGE has been doing
-
Accounting1 week agoHighest paid jobs in corporate accounting
-
Blog Post4 days agoCommon Bookkeeping Challenges and Solutions for Small Businesses
-
Economics1 week agoHow young voters helped to put Trump in the White House
-
Personal Finance1 week agoHarvard, Trump international enrollment battle affects college applicants
-
Economics6 days agoWhy the president must not be lexicographer-in-chief
-
Personal Finance1 week agoCrypto in 401(k) plans: Trump administration eases rules
-
Finance1 week agoVail Resorts, GameStop and more