yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

More accountants are leaving the field than joining. What’s going on? | Kelly Richmond Pope


3m read
·Nov 3, 2024

  • What would the world without accountants look like? I think it would be the Wild, Wild West in business. When you think about what an accountant does, a CPA does, what an auditor does: They're the ones that are telling you, "You can trust me, you can invest with me, you can lend to me." An auditor gives me assurance. If they go away, who can you trust?

This is really not a far-off question because when you look at the data, just in the past two years, 300,000 accountants have left the field. That's a huge, huge number. There are less students choosing accounting as a major; there are less students sitting for the Certified Public Accounting exams. There are more people retiring out of the field than are coming into the field. Who's gonna do your tax returns if you don't have any CPAs or accountants?

I think what's changed is the way we work. We didn't predict the growth in other areas. So many professionals that might have once majored in accounting have gravitated to these other fields. We would've never known that social media would be a major, that ESG would be a major, cybersecurity would be a major; a lot of the IT jobs would be what they are today.

We probably took our eye off the ball a little bit, and now we're playing catch up. One of our hindrances, we have something called the "150-hour requirement." If you major in accounting, you have to have 150 credit hours before you can sit for the CPA exam- and so that has made college longer and more expensive.

There's a lot of kids that go to graduate school and they wanna get their MBA, but now what you're having to do is you have to go to graduate school, get a master's in accounting, and if you wanna go get an MBA, you gotta go back to graduate school to get that. Things are gonna have to change in order to appeal to a group of Gen-Z learners that want to work differently.

So what we've seen is organizations really starting to pay for that fifth year of college, offering scholarship dollars for students to go back. "Stay in school, we'll pay for your fifth year. We'll pay for you to sit for the CPA exam. We'll pay for your study materials. We just wanna get you through."

So you're starting to see organizations push to help students in a way that you didn't see in the past. I spend a lot of time talking to high school students, and what I really try to focus on is speaking about accounting as a skill set- and it's a skill set that allows you to be entrepreneurial if you want to be. You can go work in a public accounting firm; you can go into a privately held company; you can go into a large organization, or you can start your own business.

The best-case scenario is we start to credit internships as credit hours that count towards that 150-hour requirement, encouraging more students to become Certified Public Accountants. Worst-case scenario, we have everybody retire out of the field and we are now going to majors that don't understand accounting and try to force-feed accounting into people that never really understood it or wanted to understand it; but they are gonna start opining on financial statements, which could be a little tricky.

I'm scared to think about worst-case scenario because I really, really, really hope we don't get there- but we're getting close.

More Articles

View All
7 Stoic Pillars: Shielding Yourself from Life's Impact, Epictetus Style
Hello everyone and welcome back to our journey of wisdom. Today, we delve into the profound teachings of the Stoic philosopher Epictetus, focusing on seven principles that can empower you to cultivate unyielding inner peace. If you’re new here, don’t forg…
Limitless with Chris Hemsworth | Official Trailer | Disney+
Now I may be in pretty decent shape. Sure, I may look like an immortal Norse God, et cetera. Stop it. But… I know the clock is already ticking. I’m teaming up with the world’s leading Longevity experts. [BREATHES] Taking on six of the toughest tests of my…
Introduction to the Crusades
We are in the year 1095. Just for context, this is roughly half a century after the Great Schism between the Eastern Orthodox Church, centered in Constantinople, and what eventually gets known as the Roman Catholic Church, or the Latin Church, centered in…
Controlled Bush Fire Burn | Rebuilding Paradise
ZEKE LUNDNER: One of the things that spread the Camp Fire through Paradise was all the spot fires. All those little baby trees are what carries the fire up into the crowns, and up in the crowns, when wind’s blowing, that’s how you get the one-mile to two-…
How To See Air Currents
If there were a portal through which you could see all of the invisible air currents, temperature gradients, and differences in pressure and composition of air, then this is what it would look like to strike a match. This is helium being squeezed out of a…
The Future of Driving | Years of Living Dangerously
TY BURRELL: Now that I’ve learned self-driving cars aren’t that far off, what about ride sharing? Are companies like Lyft and Uber going to be part of the solution? How you doing? All right? What are the odds? You are John Zimmer, President of Lyft. You g…