Thank you for taking the Pipeline Pledge! Through this grassroots effort, you can help transform the accounting profession, one student or employee at a time. Whether you’re already involved in outreach activities or are looking to get started, explore these resources and tips for inspiring the next generation of accountants.
There are almost as many ways to get involved in inspiring the next generation of accountants as there are unique career paths for those working in the profession. Here are five actions that Pipeline Pledge participants can make to help raise awareness and expand your impact.
Connect with your local middle or high school. Use our email template to contact the school, and explore these tips for connecting with students (middle school and high school). Let them know you would like to participate in a career day, speak to an accounting or business class, a business club, or assist in other ways that meet the school’s needs.
Volunteer to help for your alma mater or a local college campus. Let them know you are a resource for students who would like to learn more about careers in accounting. Many career offices offer opportunities to connect alumni with students who aspire to enter the same field. Use our email template to contact the school’s accounting or business department, and explore these tips for connecting with college students.
Consider becoming a mentor. Check with your state CPA society to see if they run a mentor matching program. Or offer to mentor an accounting student or licensure candidate just joining the workforce. You could also consider mentoring a new hire within your own organization, including serving as a sounding board to someone studying for or contemplating the CPA Exam.
Spread the word to your networks. Urge your colleagues and friends in the profession to take the Pipeline Pledge. Encourage others to get involved, through social media, your professional networks, or through other accounting groups in your community. Also, be sure to download your Pipeline Pledge badge and share it on your social media channels, in your email signature, or anywhere else you feel comfortable doing so.
Share your story. Help us promote the Pipeline Pledge and inspire your network to get involved with these sample social media posts. We’d also love to track the impact of our collective efforts and any ideas you have. You can share those stories by emailing PipelinePledge@aicpa-cima.com.
Michael Wetmore, Shelby Jackson, Jorge Garzon, and Alicia D. Whitworth visit a Virginia middle school to excite students about a career in accounting. Photo courtesy of Greater Washington Society of CPAs.
The accounting profession is facing a shortfall of new recruits, a trend that has serious implications. Not only are firms facing challenges in attracting new hires, but some publicly held companies are even falling short on filing critical financial reports due to the lack of accounting professionals. Employers, educators, accounting associations, and other stakeholders are already responding with strategies such as gamification in the classroom designed to build excitement around the profession, revisiting firms’ business models and pay structures, and expanding paths for underrepresented populations. But expanding the accounting pipeline is also about making a direct and personal connection with students, whether it’s in a formal classroom or business setting, or even in less formal one-on-one conversations.
Persistence pays off
Michael Wetmore, CPA, partner at Ryan & Wetmore, P.C. in Vienna, Virginia, and father of two high school students, understands the one-on-one connection well. Considering the experience of his own children and the need to address the profession’s shortage, he asked himself, “Who’s going to take us to the promised land?” He knew the answer: “We, as CPAs, have to say, ‘I have to own this problem at my own level.’”
Spotting a perfect opportunity, he contacted a career counselor at his children’s school, and said, “I’d like to get in front of some of your students who are undecided about what they want to do.”
The first session proved a little disappointing, with only six students showing up, four of whom were there only because they had not signed up for anything else. Wetmore never gave up, and his persistence paid off.
“I’m not sure it resonated with any of those students except for maybe one, but the teacher heard,” Wetmore said. Ultimately the students would appreciate the message and the excitement Wetmore brought to the classroom.
“The teacher promoted the next time I came around, and I got 15 kids the next time. I started talking in that class about some of the cool things that we do, and some of the cool people that we work with, and how accounting is the language of business.”
His sessions became more popular. Wetmore gave one example: “I was approached by one of the students after class, and she said, ‘I’d like to learn more about this. Can I come to your office?’” Wetmore agreed, and his firm offered her an internship working after school. “That young lady had no idea what she wanted to do, but she knew she wanted to go to college. She was accepted at the University of Virginia and is now an accounting major.”
One of my clients worked in the Obama White House and was with Obama in the Oval Office every day. Another client is a musician who just came back off tour. He’s a rapper, and they need tax returns and tax planning.”
What was particularly exciting to some of the students, at that session and future ones, was Wetmore’s work with some truly fascinating people, including professional athletes and other celebrities. Students responded well when he told stories beyond the day-to-day work, and were more about whom that work was being delivered to. “One of my clients worked in the Obama White House and was with Obama in the Oval Office every day. Another client is a musician who just came back off tour. He’s a rapper, and they need tax returns and tax planning. I tell these stories to the kids. I’ve planted seeds. That will bear fruit in four years if they come back to me.”
Meeting students where they are
The solution to building the profession must include many different strategies, but as seen in Wetmore’s example, some of bringing younger people into the profession lies in grassroots, one-on-one relationship building and storytelling.
It is precisely that storytelling that overcomes stereotypes and misconceptions students who are not familiar with the profession may hold. “We as a profession are not promoting the good stuff,” Wetmore said. “I think society has an image of accountants with green eyeshades and running a calculator all day.” Wetmore does not fit that stereotype, and his tales of chatting with celebrities and high-profile politicos — and occasionally delivering papers to the White House — conjure an image of a career that is anything but ordinary.
Conveying that message goes even beyond the storytelling, and Wetmore supplements his relatable stories with participation, getting students more excited about the profession with games and hands-on activities. In his other role as part of a student outreach committee of the Greater Washington Society of CPAs, he and others teach financial literacy. “We go into schools and talk about financial literacy, and we play games like Jeopardy. We went into one of the local Catholic middle schools, and we talked to eighth graders, and I would do it again. The kids were great, and they responded to it. I think that’s the way you win the game.”
At the college level, Wetmore was asked by a professor in Catholic University’s Busch School of Business Entrepreneurship Program to talk to a class and give them guidance for a project. Within that class, each student must come up with an entrepreneurial idea, such as a product they want to take to market. Wetmore helps the students work through breakeven analysis and pricing considerations. “It’s more of a classroom setting, where we say, what are your numbers? What is your cost of sales? What are your variable costs, how are you going to price this? It’s not quite as structured as the ‘Shark Tank’ TV show, but modeled after that idea.” The students love it. “I’ve gone back to that class for the last four semesters. Through that, I’ve come to know some of the accounting professors and folks in the accounting program at Catholic University, who have referred me to some of the best interns I’ve had in 30 years.”
I’m just one accountant, what can I do?
The accountant shortage doesn’t just affect firms, it affects every single member of the profession. Every CPA can do their part to help the profession, and it doesn’t require a large investment of time. Mentorship, or even a single conversation with a student, can make a difference. Reach out to local middle or high schools, or local community colleges, colleges, and universities. Even schools that lack formal programs often welcome professionals who want to share their insights and expertise with students considering their career paths.
Accountants and CPAs can also take the Pipeline Pledge — an individual commitment to participate in at least two activities that have the potential to influence and grow the talent pool. Share your enthusiasm for the profession, share your stories, and reach out. One person at a time to help grow the future of the profession.
Accounting can open doors to limitless career paths across every industry. However, both public and private sector employers continue to struggle with attracting and retaining talent. In part, this trend is linked to an overall decline in college enrollment, rising education costs, and shifting expectations regarding work culture and starting salaries. For example, Gen Z and millennial employees prioritize transparent business practices, an inclusive culture, positive community impact, and a flexible work environment.
To kick-start conversations about the changes employers are making to succeed in today’s evolving landscape, the National Pipeline Advisory Group (NPAG) developed the Accounting Employer Checklist of key areas for consideration.
Retaining talent is more critical than ever before. A report from the Institute of Management Accountants (IMA) in collaboration with Robert Half indicates that turnover for 18-36-year-old finance and accounting respondents in the last two years was 39%. Over a quarter of respondents in that age group are also most likely to leave their current employers in the next year, and 8% are considering leaving the profession entirely in the next year.
Once accounting professionals enter the workforce, how do we keep the best and brightest, when consulting, finance, tech companies, and Wall Street firms beckon? Addressing the retention challenge begins with understanding why people are leaving and where they are going once they leave.
In fall 2023, the National Pipeline Advisory Group (NPAG) launched focus group polling conducted by state CPA societies and the AICPA to explore barriers and solutions to grow the profession’s talent pipeline. Eighty-nine percent of the 1,600 poll respondents said understanding retention trends was as important as attracting new entrants to the profession.
As we look to the future, we must create an environment where those who are in the profession are motivated to stay.
The market today: high turnover, fewer new candidates
The Bureau of Labor Statistics reported that the U.S. added 353,000 jobs in January 2024, and the unemployment rate held steady at 3.7%, beating economists’ projections. Good news for the economy! The BLS also reports that employment of accountants and auditors is projected to grow 4% from 2022 to 2032, about as fast as other occupations, with 126,500 openings for accountants and auditors projected for each year on average.
However, the agency also noted, “Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.” This turnover, together with fewer students entering the profession, is a cause of concern. The profession must pay special attention to identifying solutions around holding onto the talent we already have. Retention in the first five years of an accounting career is an important focus for NPAG.
Why is talent leaving? Are other pastures really greener?
To be sure, some accountants are moving on to other careers, and determining whether they are leaving the accounting profession or simply applying their accounting skills differently can be challenging. Many are likely looking for an employer who will offer a competitive salary, provide a culture they fit into, allow for work-life balance, and expect more reasonable hours. According to the Illinois CPA Society’s 2023 report, “Righting Retention: A look into the accounting profession’s greatest management challenge,” the biggest reasons cited for leaving include:
Salary
Too many hours/burnout
Lack of work-life balance
Workplace culture
Lack of advancement opportunities
In the initial polling by the NPAG mentioned earlier, the feedback reinforces many of these attrition trends. Over 90% of respondents agreed or strongly agreed that the ongoing high volume of work makes accounting feel like a more challenging career. And, 41% reported that the highest rate of turnover occurs when employees hit the three to five years.
What can we do now?
None of the reasons for the turnover cited above are insurmountable, and a first step is communicating with employees to better understand what they want and expect. And, while “more money” feels like the most obvious answer, equally important is flexibility and office culture.
Unless the profession takes decisive action, the pipeline shortage poses a risk to the future of the profession, finance departments, and CPA firms in the foreseeable future. Much discussion has focused on ways to encourage more students to pursue a career in accounting, but this is only part of the solution. The only way to completely address the pipeline shortage is to focus on retention strategies geared toward all life stages, from high school to college, new recruits, career changers, and accountants near retirement.
The NPAG’s mission is to increase the number of people entering accounting, some of whom later go on to earn their CPA. The NPAG is actively identifying solutions to the pipeline shortage, and our initial draft report, scheduled for release in May 2024, will outline some of the best solutions to come out of our research and discussions. We look forward to hearing your ideas, feedback, and input on this most pressing issue.
Lexy Kessler, CPA, CGMA, is the chair of the National Pipeline Advisory Group. She is the Mid-Atlantic Regional Leader for Aprio and is a member of the board of directors of the Association of International Certified Professional Accountants. For more on NPAG, visit our FAQs page.
The National Pipeline Advisory Group (NPAG) is committed to developing a unified strategy that increases the number of people who choose a career in accounting. To ensure any recommendations are grounded in data and reflect the needs of multiple stakeholders, the advisory group is pursuing several research and outreach activities. Findings from these efforts are helping NPAG identify root causes of pipeline attrition, prioritize key areas for improvement, and ultimately shape solutions.
From August to December 2023, NPAG partnered with state CPA societies and accounting firms to poll more than 1,600 stakeholders about pipeline trends. The majority of respondents work in public accounting (49%) and finance or business (37%).
When asked about the factors influencing students’ decisions to pursue an accounting career, respondents citework-life balance, starting salaries, and meeting the education and exam requirements.
According to the NPAG poll, the top pipeline hurdles include:
The ongoing high volume of work accountants have been experiencing makes a career in accounting feel more challenging than other careers might be (92%)
Students perceive that their starting accounting salary will not compete with other professions (79%)
Inconsistencies in the makeup of the additional 30-hour education requirement detracts from its value (75%) and presents too great a hurdle (59%)
Students perceive the CPA Exam to be too difficult to study for and pass (69%)
Students don’t choose a career in accounting because they don’t know an accountant and lack access to information about the benefits of the career (67%)
Students aren’t attracted to an accounting career because they’ve heard negative things about the profession on social media (58%)
Another key finding shines light on when the profession may be losing talent. Four in 10 respondents (41%) said turnover is highest after three to five years of employment. It’s unclear whether these employees are finding new accounting jobs or leaving the field altogether.
When asked about the relative importance of attraction and retention, 89% of respondents agreed that “it is as important to identify why CPAs leave the accounting profession after they are licensed as it is to work on attracting more accounting students into the early stages of the talent pipeline.”
While this initial round of polling did not include students or CPA candidates, the results are consistent with findings from many other pipeline studies. These insights also underscore the need for solutions that address every life stage – from attracting students in high school to supporting candidates on the licensure path and beyond.
In January, NPAG began piloting a national survey on potential solutions to select audiences. Following the pilot, the survey will be open to the wider profession and will remain open for an extended period of time. NPAG hopes to hear from as many people as possible.
At the AICPA Fall Council Meeting, members from across the profession gathered in Pasadena, California, to explore the latest industry trends. During the meeting, attendees heard updates from the National Pipeline Advisory Group (NPAG) and participated in brainstorming sessions about the talent shortage. Insights from these focus groups, as well as data from future surveys, will help identify root causes of attrition, prioritize key areas for improvement, and ultimately shape solutions.
NPAG members represent firms of all sizes, academia, CPA state societies, regulatory bodies, professional associations, and various career stages, among many other viewpoints. For a glimpse into some of the topics being explored by NPAG, watch members discuss everything from telling the profession’s story to helping accounting students succeed.
Kathy Johnson, CPA, CFF, CGMA, vice president at J.S. Held, explains how earning a CPA license can open doors to a multifaceted career.
Mark Taylor, CPA, director of University of South Florida’s Lynn Pippenger School of Accountancy, shares how small changes can alter student perceptions and set the next generation up for success.
Michelle F. Randall, CPA, CGMA, accounting professor at Schoolcraft College, explores how CPAs can inspire the next generation to pursue a career in accounting.
Joe Falbo, CPA, CGMA, partner at Cohen & Company, encourages the profession to “put aside what you know” and consider new strategies to strengthen the talent pool.
By working together, we can boost awareness of the profession’s vital role, drive innovative pipeline strategies, and ensure the next generation of accountants is prepared for tomorrow’s challenges.
