understanding the inflection points
in number of cpa exam candidates
卡塔尔世界杯常规比赛时间 cornerstone report
the key factors contributing to the ups and downs – mostly downs in the last three decades – of cpa exam candidates reflect broader trends in the economy, regulatory environment, and demographic landscape.
the peak year for accounting graduates in the united states was 2016, when the number of new graduates was at its highest. since then, the number of accounting graduates has declined, with a 7.4% drop in the 2021–2022 academic year. this was the largest drop in a single year since at least 1994–1995.
enrollment: accounting program enrollment peaked in 2014–2015 at 253,082 students.
cpa exam candidates: the number of unique cpa exam candidates peaked in 2016 at 102,291. in 2022, the number of cpa exam test-takers fell to 67,355.
percentage of graduates taking the cpa exam: the percentage of accounting graduates taking the cpa exam for the first time has dropped from 70% in 2010 to below 50% in recent years.
accounting programs’ expectations: in 2021–2022, 58% of accounting program respondents said they expected enrollment to be the same or higher than the previous year.
bigger picture: the decline in accounting graduates is part of a broader drop in college enrollment in the u.s., especially pronounced during the pandemic. as more workers in the accounting profession retire, there is a concern that the talent pipeline is running dry.
economic conditions
- economic downturns and upturns significantly impact the number of candidates. for example:
- 2001-2002 decline: the early 2000s recession, following the dot-com bubble burst and the september 11 attacks, led to fewer job opportunities, affecting the number of people pursuing cpa certification.
- 2008-2009 decline: the great recession caused another dip as financial markets crashed, leading to job cuts and lower enrollments in professional certification programs.
changes in exam format and regulations
- major changes in the cpa exam format and regulations also create spikes or drops in candidate numbers:
- 2004 increase: the introduction of the computerized cpa exam in 2004 made the exam more accessible and flexible, leading to a surge in the number of candidates.
- 2011 drop: changes in the exam structure and content, including adding new sections and increased difficulty, often result in temporary drops as candidates adjust to new requirements.
perceived value and career prospects
- the perceived value of a cpa certification and career prospects in accounting can influence candidate numbers:
- growth mid-1980s to early 1990s: during this period, the accounting profession saw significant growth due to economic expansion and increased demand for financial transparency, leading to a steady rise in cpa candidates.
- 2016 surge: the run-up to the 2017 changes in the cpa exam format, which introduced more simulations and higher-order skills testing, led to a rush of candidates trying to pass the exam before the changes took effect.
technological advancements
- advancements in technology and the integration of new software and systems in accounting practices also impact the profession:
- post-2010 fluctuations: as technology advanced and accountants’ roles evolved to include more strategic advisory functions, the number of candidates fluctuated, reflecting the changing skill set required for cpas.
educational requirements
- changes in educational requirements for cpa licensure can also create inflection points:
- 1990s decline: increased educational requirements, such as the 150-hour rule adopted by many states in the 1990s, led to a temporary decline as candidates took longer to meet the new standards.
accounting graduates trend
| year range | number of graduates |
|---|---|
| 2015-2017 | 56,715 |
| 2019-2020 | 52,481 |
accountant exodus (2019-2022)
| number of accountants who left | over 300,000 |
| percentage decline from 2019 peak | 17% |
accounting graduates in the united states (1971-2022) |
|||
| year | bachelor’s degrees | master’s degrees | total graduates |
| 1972 | 23,800 | 2,200 | 26,000 |
| 1973 | 26,300 | 2,700 | 29,000 |
| 1974 | 31,400 | 3,400 | 34,800 |
| 1975 | 35,100 | 4,200 | 39,300 |
| 1976 | 38,200 | 5,000 | 43,200 |
| 1977 | 40,400 | 5,600 | 46,000 |
| 1978 | 41,900 | 6,300 | 48,200 |
| 1979 | 43,400 | 7,100 | 50,500 |
| 1980 | 49,400 | 8,000 | 57,400 |
| 1981 | 50,300 | 8,400 | 58,700 |
| 1982 | 53,320 | 7,070 | 60,390 |
| 1983 | 50,060 | 5,330 | 55,390 |
| 1984 | 53,450 | 7,170 | 60,620 |
| 1985 | 54,200 | 6,800 | 61,000 |
| 1986 | 48,500 | 5,900 | 54,000 |
| 1987 | 48,000 | 5,600 | 54,000 |
| 1988 | 46,340 | 4,910 | 51,250 |
| 1989 | 52,500 | 5,230 | 57,730 |
| 1990 | 52,320 | 5,040 | 57,360 |
| 1991 | 53,600 | 5,540 | 59,140 |
| 1992 | 53,320 | 7,070 | 60,390 |
| 1993 | 50,060 | 5,330 | 55,390 |
| 1994 | 53,450 | 7,170 | 60,620 |
| 1995 | 53,360 | 7,860 | 61,220 |
| 1996 | 52,030 | 7,630 | 59,660 |
| 1997 | 41,852 | 6,190 | 48,042 |
| 1998 | 39,433 | 5,923 | 45,356 |
| 1999 | 41,170 | 6,725 | 47,895 |
| 2000 | 37,115 | 7,980 | 45,095 |
| 2001 | 34,751 | 6,622 | 41,373 |
| 2002 | 34,719 | 7,340 | 42,059 |
| 2003 | 36,324 | 8,458 | 44,782 |
| 2004 | 38,804 | 10,008 | 48,812 |
| 2005 | 41,208 | 11,357 | 52,565 |
| 2006 | 43,689 | 12,247 | 55,936 |
| 2007 | 46,337 | 12,931 | 59,268 |
| 2008 | 47,864 | 13,842 | 61,702 |
| 2009 | 50,803 | 15,303 | 66,106 |
| 2010 | 55,002 | 17,426 | 72,428 |
| 2011 | 56,129 | 19,956 | 76,085 |
| 2012 | 57,483 | 20,865 | 78,348 |
| 2013 | 56,650 | 21,952 | 78,602 |
| 2014 | 55,734 | 22,403 | 78,137 |
| 2015 | 56,397 | 22,777 | 79,174 |
| 2016 | 56,715 | 23,139 | 79,854 |
| 2017 | 55,963 | 22,949 | 78,912 |
| 2018 | 55,377 | 23,141 | 78,518 |
| 2019 | 53,991 | 22,323 | 76,314 |
| 2020 | 52,481 | 20,442 | 72,923 |
| 2021 | 51,031 | 19,484 | 70,515 |
| 2022 | 47,067 | 18,238 | 65,305 |
the accounting exodus
no longer a problem confined to just new talent or middle managers.
for many accountants on the edge of transition, the coming years will determine whether the profession can reinvent itself to retain the trust of its workforce or continue to lose ground as one of america’s fundamental professions.
more than 82 percent of accountants who are leaving the profession have at least six years of experience, up from 77 percent in 2022 and 71 percent in 2021, according to live data technologies.
the field has seen a mass exodus in recent years, with over 300,000 accountants leaving between 2019 and 2021. the departures are creating a pronounced shortage of qualified accountants, with vacancy periods lengthening as the pipeline for new entrants weakens.
key drivers behind the trend include stagnant salaries, high stress, and repetitive accounting tasks, which many professionals find uninspiring.
some are also wary of the impending influence of generative ai, which could automate a substantial portion of accounting’s core functions.
for former accountant omer khokhar, the field’s financial promise initially drew him in. however, the “monotonous” work and limited growth opportunities ultimately led him to transition into commercial real estate banking with jpmorgan chase, he told the wall street journal. like khokhar, many in the field are opting for finance, business operations, and technology roles, where growth and innovation are more pronounced.
dwindling interest in accounting degrees exacerbates the shortage, which is further strained by stringent certification requirements. as retirements rise and fewer new accountants enter the workforce, the strain on remaining professionals is mounting.
the profession is ramping up efforts to attract younger talent, but retention has been a losing battle. high burnout rates reflect accountants’ growing discontent, with many seeking work-life balance and meaningful contributions—qualities some feel the profession increasingly lacks.
ey, for instance, is investing $2 billion in added compensation and benefits.
meanwhile, accounting firms are also implementing measures like allowing managers to remain in place without mandatory promotion requirements to prevent further attrition. additionally, ai is prompting mixed reactions, with some viewing it as a relief for mundane tasks, while others worry it signals a threat to job security.
the accounting profession is desperately seeking solutions to address the staffing shortage through various strategies, including:
- removing barriers: the removal of the 150-hour rule, which is seen as a barrier to students entering the profession.
- non-traditional hiring: firms are hiring individuals who may not have a traditional accounting background.
- process improvement: there is a push for existing staff to improve their processes to reduce time spent on repetitive tasks, thereby increasing efficiency.
- remote specialists: utilizing remote specialists to help firms manage workloads without hiring additional full-time staff.
- client selection: some firms are becoming more selective about the clients they take on, focusing on higher-value work and disengaging from less profitable clients.
- compensation adjustments: increasing fees and better compensation may be the long-term solution to attract and retain talent.
- private equity and mergers: firms are exploring merger and acquisition opportunities to cope with staffing challenges, including a new rush to private equity.
the statistics are sobering.
| 2024 starting salary | 2023 starting salary | % change | |
| engineering | $76,736 | $74,405 | 3.10% |
| computer sciences | $74,778 | $72,843 | 2.70% |
| math and sciences | $71,076 | $67,199 | 5.80% |
| social sciences | $69,802 | $60,107 | 16.10% |
| humanities | $68,227 | $52,938 | 28.90% |
| business | $63,907 | $62,069 | 3.00% |
| accounting | $63,000 | $61,000 | 3.30% |