In a recent meeting of public accounting tax leaders and advisors, I happened to ask how they introduce themselves at business events or parties. Their answers highlighted the complexity of defining the public accounting profession today.
Some said that they avoid the term "accountant," but often call themselves "business advisors." They may also focus on their niche by saying that they are "tax advisors" or they "work with nonprofits on their financial health." Some will also emphasize that they are CPAs to distinguish their work and credentials from accountants.
Without a clear elevator pitch, the public accounting profession has an identity crisis when trying to attract talent. The prestige and intrinsic value of accounting (and pursuit of CPA licensure) has been diminished by student concerns over college debt and extensive CPE, long work hours and slow career advancement.
In its most recent annual report, the National Association of State Boards of Accountancy showed a 6% increase in CPA examination sections taken between fiscal year 2020 and 2021. This is still far below the volume of 248,000 sections in 2019. It is possible that more CPA candidates are waiting until the new exam structure launches in 2024. Only time will tell if we see more CPAs in the coming years. We need to change that dynamic now.
Is there a CPA barrier?
Individual firms are making strides to promote the benefits of public accounting careers to college and high school students. Recruiters are emphasizing more flexible schedules, great culture and diverse career options. In fact, more firms are actively hiring non-CPAs as a viable career track in IT, client accounting and advisory services, business advisory services and other specialties.
Jeremy Vokt, CPA, is the managing partner at Bland & Associates in Omaha, Nebraska. His firm has hired non-CPAs such as medical coders, insurance professionals and consultants for its government consulting practice specializing in the Centers for Medicare and Medicaid. The firm has also hired former private accountants and bookkeepers, as well as people with business backgrounds who want to transition to public accounting. He said that his firm already has non-CPA leaders in daily operations.
A year ago, the firm revamped its career path for all employees by integrating its core values and creating individual development plans for CPAs and non-CPAs. The firm provides quarterly feedback to employees, but leaders also meet monthly with their direct reports to focus on each personal development plan and professional growth opportunities. Some of that discussion includes the path to CPA credentials for non-CPAs.
"Everyone is now using the same format, language and plan outline on how they grow and develop here at Bland," Vokt said. "We are not necessarily changing how we incentivize the CPA licensure, but are making sure we provide an attractive career path and a culture all people want to be a part of."
Firms know that attracting and keeping professionals is job one. Many firms assure non-CPA employees that licensure can always be discussed later; however, being a CPA is still the primary path to leadership (and ownership) at most firms. Employee benefit packages include paid study time and payment for the CPA exam and licensure. A licensed CPA manager or partner primarily supervises non-CPA professionals.
On average, a CPA earns about 34% more than an accountant, according to job website Indeed, depending on levels of education, job location and industry. With partnership and ownership stakes, compensation goes up exponentially.
However, multiple career path discussions should happen during recruitment as well as during onboarding and regular check-ins. This can help dispel myths that public accounting only offers limited career prospects and challenging working conditions.
"We certainly would like and need more licensed CPAs," Vokt acknowledged. "And we work with individuals in our direct report meetings to help them get that license when it's a fit. And absolutely there is still room for non-CPA leadership in this industry."
Develop non-CPA career tracks
Obviously, state licensure and professional standards to practice as a CPA firm require CPAs. We should encourage and continue to support interested employees to pursue the CPA exam and licensure. As the profession evolves its advisory capacity, technology and specializations, the leadership table can only benefit from highly skilled CPAs and non-CPAs working together to advise clients.
To meet your demand for talent, however, include non-CPA recruitment and career development in your strategic initiatives for the coming years. And of course, continue to encourage CPA licensure for interested employees. It's a win-win opportunity.
As we develop these non-CPA career tracks, it will signal to students and current employees that public accounting is an expanding career choice that safeguards the financial health of our economies and people. And hey, that's a pretty good elevator pitch.
