Number taking CPA Exam at a 17 year low

[Lee B]

"The number of people taking CPA exams in 2022 was just over 67,000, down from 72,000 in 2021 and short of the institute’s forecast of 74,000, according to a note in AICPA’s annual report published this month. That was the lowest level since the beginning of records for the modern exam in 2006."

[Corduroy Frog]

CBS, I'm wondering why.

I'm wondering whether the prospect of becoming a CPA has lost some of its appeal for younger folks.  I can't imagine that to be the case.  From what i know, CPAs serve a more helpful and needed service now more than ever.  The number of companies who are sound except for their financial housekeeping seem to be at an all-time high.

I've heard of some professional people (doctors, attorneys, etc) regret entering their profession and would not do it again if they were younger and had the choice.  I don't know any CPAs who would regret such, although they can be under pressure oftentimes.  (I don't know thousands of CPAs but I do know several).

The sociologists and such tell us we have left the industrial age and entered the information age.  With information at a premium, I believe the demand for the services of a CPA should be at an all-time high.

I am inviting discussion on the topic - please ignore that I have not posted in a while.

[Lee B]

Surveys say that the members of Gen Z don't consider being a CPA to be a desirable profession.

[kathyc2]

Here's the full article:  https://www.ft.com/content/e8dc2264-6b8d-4ed5-8bbd-e4a67e7d1e46

"The pipeline of new candidates has thinned because university accounting courses have become less popular in the US. Graduates’ starting salaries can also be at least one-fifth higher in finance or technology, and those careers may not require such an expensive professional qualification. “With the length of time it takes to become a partner, the length of time it takes to achieve financial success, the financial model of CPA firms is archaic,” said Alan Whitman, who ran the accounting firm Baker Tilly for seven years until March."

Add in the extra year of college needed, long hours and gruntwork for newbies at large firms, perception of boring, etc.

 

[mcbreck]

From what I've been told it's a three fold problem:

it's the extra hours of college that are required. 150 hours versus 120 means you need a 5th year or you are getting your masters. My nephew considered it but that extra year was a deal breaker so he chose the Finance degree. Now he negotiates contracts.

The other issue is the extra hours of work a CPA is required to do. His job is 40 hours per week except for 2 weeks at the end of the year when companies get desperate to finalize deals. His CPA friends are working 50-60 hours per week for the same money year round. When you are 20 years old, who wants to commit to that for the next 40 years?

The public auditing requirement is perceived as overly burdensome and boring. The perception is that nobody wants to do the job and that's why it's required as a condition. They get low cost labor nobody wants to do.

 

 

[mcbreck]

I should mention, 40 hours per week is enforced at my nephew's firm. The CEO is often in the lobby of the headquarters as people come in as they want people IN THE OFFICE. At the same time management wants them OUT by 5pm and no meetings can be set after 4:30 / 2:30 on Friday.

My wife works for a company that says you must work 40 hours but you can show up anywhere from 7am to 9am (thus leaving floats but many leave at 3:30pm). Then consultants set meetings at 5pm on Friday and everyone throws a fit but management quietly ignores it as long as they aren't included in the meeting. My wife's boss tells her to automatically respond with OUT OF OFFICE at that time but she misses a lot of meetings.

[Patrick Michael]

It's not just CPA's, but the accounting profession over all.  The CPA firm I left in December, where I was a senior staff accountant (CMA and EA), has called me twice asking what they can do to get me to come back.  They are so short of help they are looking into contracting with a firm in India to handle the "backroom" tasks such as bookkeeping and tax prep that the staff accountants used to handle.  

 

[ILLMAS]

CPA's are even leaving the profession and becoming CFO, comptrollers etc...  They no longer have to take CPE hours or be licensed and probably earn more and are less stressed.

[mcbreck]

My brother was a CPA and went to work for a company he audited. He was treasurer and moved up to being CEO. Now he's the CFO of a large company. He refused to be a partner of his CPA firm because of the Arthur Andersen meltdown and financial meltdown it caused the partners. He also didn't want the stress of having to bring in clients. 

[ILLMAS]

1 hour ago, mcbreck said:

My brother was a CPA and went to work for a company he audited. He was treasurer and moved up to being CEO. Now he's the CFO of a large company. He refused to be a partner of his CPA firm because of the Arthur Andersen meltdown and financial meltdown it caused the partners. He also didn't want the stress of having to bring in clients. 

I have a CPA sister that did the opposite and works too much.

[Yardley CPA]

In my humble opinion, the CPA designation is worth all of the headaches.  I'm happy I earned the designation (many years ago) and have absolutely no issue with attaining the required CPE.  It's a designation that is still in demand today and offers those who have the initials great professional opportunities.  

[mcbreck]

18 hours ago, ILLMAS said:

I have a CPA sister that did the opposite and works too much.

My brother is a workaholic. He works 365 days per week and when he was CEO was monitoring activity on Xmas morning.  We always joke that if he "retired" and took a 40 hour per week job it would be part time work.

[schirallicpa]

On 5/29/2023 at 8:16 PM, Corduroy Frog said:

I've heard of some professional people (doctors, attorneys, etc) regret entering their profession and would not do it again if they were younger and had the choice.  I don't know any CPAs who would regret such, although they can be under pressure oftentimes.  (I don't know thousands of CPAs but I do know several).

 

I would never ever choose to be a CPA ever again.  I totally regret entering and staying in this profession and would not do it again.  And I will tell any young person considering accounting/CPA to get out.  It is the most underrated, underpaid profession that anyone could get in to.  So much stress and so much expectation in exchange for a gripe about a bill. 

[Corduroy Frog]

Not a CPA, so I'm asking out of ignorance.

A couple of CPA friends are spending time marketing their services.  As if wanting to take on more and more work.  How does this stack up against many of you who reflect the industry as being long hours, low pay, and pressure.

I'm having a hard time reconciling this.  Maybe some of you can help put this together.

I do know from personal experience that an EA does have long unforgiving hours until April 15th, but plenty of spare time after that.

[Medlin Software, Dennis]

On 6/11/2023 at 8:38 AM, schirallicpa said:

It is the most underrated, underpaid profession that anyone could get in to.  So much stress and so much expectation in exchange for a gripe about a bill. 

I gave up my initial passion (mechanic, speciality in race vehicles), as soon as I was old enough to do something else. Started at 14, stopped at 18, for the reasons shown in the quote. Was my father’s career, but he found a good gig for Allis-Chalmers.

Gave up my avocation (baseball umpire) for the same reasons, and for safety of myself, partners, and my family. Plus the catchers are not properly taught their position until at least college and I was tired of being a backstop.

I enjoy my profession of the last 35 years. Most customers are great. The few who are not, I have the ability to let them go. It takes the same type of mental skills I trained for in my youth.

 

[BrewOne]

I culled the herd last year--going through old emails, I'm amazed at what I tolerated.

I wonder about young people's expectations--do they think they're going to invent an app that will set them up for life?  At any rate, the independent preparer is disappearing around here, even though there's a need and you can make a decent living if you offer additional services.  Just not going to make a killing.

[Lee B]

"DEAR ANNIE: I’m feeling torn between pursuing my dream and maintaining my financial stability. I have a job as an accountant making six figures, but it’s boring work -- so boring that I dread getting out of bed every morning. The days go by slowly, and I find myself living for the weekend."

You don't usually see accounting mentioned in advice columns

[Medlin Software, Dennis]

Independent anything is waning. Expensive to get started, and requires near constant attention. We seem to be back to when many want to work for something large and retire after 20 to their next great adventure.