The shortage of accounting students and graduates has been featured in articles in the national business media recently. Fewer students are electing to major in accounting with even fewer opting for careers in the field. As more and more CPAs retire, this shortage is likely to worsen before it begins to turn around.
Perhaps it would be helpful for students, families and businesspeople to refresh their understanding of the many unique benefits of accounting education, as well as related professional experience. A career in accounting is not for everybody; however, one should make an informed choice among careers, especially at the key early stage of one's growth after college.
Before citing reasons to pursue a career in accounting, it might do well to better understand how the accounting profession arrived at this challenging juncture.
How did we get here?
Hollywood and the media have not been kind to the accounting profession. Beyond news coverage of high-profile cases of fraudulent financial reporting and audit failure, the media has created an unflattering persona of accountants.
In 2016, film star Ben Affleck was cast in the movie "The Accountant," about a maladjusted, violent savant with a serious personality disorder. In other media contexts, accountants are portrayed as dull, emotionless automatons who are painfully uncharismatic. Many long-running TV series over the last 60 years feature a variety of professions, but never accountants, except in stereotypically unflattering minor roles.
Unfortunately, sometimes the negative public impressions are self-inflicted. For example, it is painful to watch awkward CPA firm representatives in their brief spot as voting tabulators and validators at annual Hollywood awards show broadcasts watched by millions globally. The accounting community could and should do much better. Years ago, the American Institute of CPAs tried to project a positive image of the profession by sponsoring a Rose Bowl float on the history of accounting. The accounting community could and should do much better.
In contrast, in the past, great accounting leaders, like Harvey Kapnick, Don Kirk, John Burton and Leonard Spacek penned persuasive articles on issues of the day that were featured regularly in The New York Times and The Wall Street Journal, demonstrating high-profile thought leadership that is missing today.
Additionally, in colleges and universities the value of the study of accounting is often not communicated accurately or effectively. Historically, most accounting faculty, including academic luminaries Abraham Briloff (City University of New York), Charles Horngren (Stanford University), William Paton (University of Michigan) and David Solomons (Wharton) acquired significant experience and grounding in the "real world" before assuming their teaching roles. They were articulate, credible and effective at communicating the benefits of accounting education to students.
In contrast, today, the majority of accounting instructors have little or no exposure to relevant work experience. They cannot genuinely promote something that is a "blind spot" in their backgrounds. Imagine a medical school professor of surgery attempting to persuade students to consider applying for a surgical residency when the professor has never set foot in an operating room.
Six reasons to consider accounting
1. Accounting is the language of business. The better one understands a language from literal to nuanced perspectives, the better the understanding of the literature. When one studies the fundamentals of a foreign language, it enables the student to understand some basic dialogue and common phrases. However, to read and appreciate a poem in that language would be impossible without a more significant investment in the study of that foreign language.
This partially explains why accounting grads with just a few years' experience in professional accounting roles are highly sought after in the marketplace for talent. They quickly become fluent in the language of business. Additionally, a strong foundation in accounting is a proven enabler of success for those pursuing a variety of careers in business, beyond accounting.
2. Accounting is foundational for global economic stability. Market stability requires accessible, reliable, timely and robust financial information for investors, creditors, regulators and businesspeople. This underpinning also supports the functioning of our highly sophisticated financial markets. Our financial markets create wealth, democratize investment, and reduce investment risk. This is in part due to the consistent rigor of U.S. Generally Accepted Accounting Principles and U.S. auditing standards, as well as their consistent application to required general purpose financial statements. One can take pride in joining a profession that is fundamental to the strength of our financial markets.
3. Accounting is an opportunity-rich context to begin one's career. The larger accounting firms are innovators in both human resource practices and technology deployment. Their record of innovation goes back to when accounting was the first profession to provide laptop computers to every staff person. Today, they are early adopters of artificial intelligence and lead in understanding how to mitigate emerging risks associated with information systems, data controls and security. From the human resources perspective, major accounting firms led in remote work arrangements well before COVID. They also are recognized leaders in mentorship programs and training, as well as in inclusion and diversity.
4. Accounting provides exposure to varied industries and to business leaders. Accounting firms offer diverse industry experience, especially in audit services. This exposure to a variety of industries is highly valuable, intellectually stimulating and accelerates development. In my first year as an auditor, I served clients in the transportation, financial services, energy and not-for-profit sectors.
As an auditor, one also has the opportunity to interact with seasoned client managers who have a wealth of experience and expertise. These two experiential features deliver a rapid sophistication and growth that few alternative early-career paths can match.
5. Accounting firm culture and compensation. Unlike many other early-career opportunities, the culture of the accounting firm is more transparent and readily understood, in contrast to other early-career positions. The accounting firm culture is also more consistent across the industry and across the offices of a firm than their corporate counterparts. A lucid understanding of organizational culture is critical to an individual's comfort, performance and satisfaction.
Accounting firm compensation is cited in the media repeatedly as an issue that impacts student career decisions. Compensation is lower than some early-career alternatives; however, compensation is a lifelong pursuit. Economic conditions change, sometimes drastically, during one's career. A career in accounting can provide greater earnings stability than many alternatives. This is a trade-off to consider.
Additionally, compensation itself isn't the complete remuneration picture; it can also include specific benefits, such as reimbursement for professional exam costs and exam prep courses. Also, accounting firms elevate and systematically accelerate the growth and promotion of top staff performers. What is truly golden is the brand-name value of the top accounting firms. It represents an enduring, globally recognizable experience pedigree. As one executive pointed out, "It's not so much about this job; it's about how this job will prepare and position you for your next move."
6. Accounting profession's volunteerism. Today's college students are more likely to value a profession's contributions to public service than previous generations. Professional accountants add, in many ways, to the quality of the life of others by serving the greater good. Their expertise is applied to a variety of business clients, of course, but also to individuals, families and not-for-profit organizations. Professional accountants often donate these services to under-served communities that can least afford it. For example, some accounting firms encourage their staff to do a set amount of volunteer work annually. The firms, to their credit, compensate their staff for that time served in the public interest.
So, where's the flaw? Professional accountants are less adept at "blowing their own horn" than others. I can live with that; perhaps you can too.
