States that are Taking Action to Reduce the Accounting Shortage

The accounting shortage is real, and it’s only getting worse! 

Some states are taking bold steps to make sure businesses aren’t left scrambling for qualified professionals. It’s not just about filling vacancies but about empowering the future of accounting. 

You might be surprised by some of the changes being made. These states are thinking outside the box, creating new paths for aspiring accountants, and opening doors for more talent to enter the profession. 

So, what exactly are they doing to close the gap?

The Growing Accounting Job Shortage in the USA

In recent years, fewer individuals have chosen to pursue accounting degrees or take the Certified Public Accountant (CPA) examinations, leading to a significant decline in new professionals entering the field. 

This has contributed to a growing question: Is there an accountant shortage?

The widening gap between demand and supply underscores the urgent need for qualified accountants and auditors. Many firms are offering appealing financial incentives to fill vacant positions, as the shortage of accountants in the USA continues to escalate. 

The shortage is not only a challenge for the profession but also a pressing issue for financial stability, compliance, and the future of the industry. Addressing this issue may require CPA licensure reform to make the profession more accessible and appealing to future candidates.

Factors Behind the Growing Accountant Shortage in the USA 

The accountant shortage in the USA is fueled by a range of contributing factors, including:

• A wave of accountants approaching retirement, creating a significant talent gap in the profession.

• A noticeable decline in enrollment in accounting programs at universities and colleges.

• The increasing complexity of accounting regulations, driving up the demand for experienced and certified CPAs.

• Less competitive salary offerings and limited career growth opportunities at some firms make the profession less attractive to new graduates.

How Businesses Are Tackling the Accounting Shortage in the USA

As the accounting shortage in the USA continues, many companies are taking proactive steps to strengthen their teams and make the profession more appealing. Some of these efforts include:

• Raising base salaries to reflect the increasing workload and responsibilities.

• Allowing employees to work remotely, with proper security measures in place, improves flexibility and boosts retention.

• Reducing burnout and improving job satisfaction for current accounting staff by offering better support and more realistic workloads.

• Offering scholarships to accounting students to help with their education and build a strong talent pipeline for the future.

• Expanding apprenticeships and training programs to help new financial professionals enter the workforce more quickly.

  
  

States Taking Action—and Those Still on the Sidelines

The accounting field is facing a big challenge with a shortage of accountants. To solve this, some states are changing the rules to make it easier to become a CPA. Others are still stuck or facing problems with their plans. 

States That Changed CPA Licensure Laws

• New York -  Passed legislation enabling CPA licensure with 120 college credits, two years of experience, and the CPA exam. Now awaits Gov. Hochul’s signature.

  
  

• Minnesota -  Approved a bill adding two new pathways—bachelor’s + 2 years experience or master’s + 1 year experience—with the 150‑hour route sunsetting in 2030.

  
  

• South Carolina -  Signed SB 176 into law. Effective June 30, candidates can qualify with a bachelor’s degree, 2 years of experience, and have 36 months to complete the CPA exam.

  
  

• Oregon -  Senate approved SB 797, which allows CPA candidates to qualify with a bachelor’s + 2 years of experience + CPA exam, while keeping the 150-hour route as an option.

  
  

• At least 19 states total including Connecticut, Illinois, Ohio, Virginia, Indiana, Iowa, Montana, Tennessee, Georgia, Texas, New Mexico, Utah, Nevada, Alaska, and Hawaii, have passed similar reforms to ease or remove the 150‑hour barrier.

States That Haven’t

• Florida -  The proposed CPA licensure bill (CS/SB 160 & HB 133) was bundled into a broader deregulation package, which failed. The FICPA plans to reintroduce the bill in the next session.

  
  

• Nevada & Alaska - Both have seen CPA pathway bills approved in their legislative chambers, but final steps are still pending before they become law.

New York Legislation Tackles Accountant Shortage

New York has recently passed a law aimed at solving the state's growing accountant shortage. The law creates alternative paths to become a Certified Public Accountant (CPA), making it easier for more people to enter the profession.

New CPA Requirements

Under the new law, individuals can now qualify for CPA licensure with just 120 college credit hours, equivalent to a bachelor's degree. In addition, candidates must complete two years of professional experience and pass the CPA exam. This change lowers the barriers to entry, allowing people without traditional educational backgrounds to become CPAs.

Meeting the Growing Demand for Accountants

The change is designed to meet the increasing demand for qualified accountants by expanding the pool of candidates. By reducing the 150-hour education requirement, the law aims to attract more people to the profession, addressing the shortage and ensuring businesses and government have the financial expertise they need.

A Trend Across States

This new law is part of a larger trend of states revising the CPA licensure process to help reduce the nationwide accountant shortage. New York hopes these changes will keep it competitive in attracting and retaining accounting talent.

Now, let’s find out why Florida’s legislative setback could slow down efforts to address the accountant shortage.

Florida's Legislative Setback in Addressing the Accounting Shortage

Florida's efforts to reform CPA licensure have faced significant challenges. A bill aimed at easing licensure requirements was included in a larger deregulation proposal, which ultimately failed to progress in the legislature. As a result, the proposed changes to the CPA licensure process remain stalled.

The Florida Institute of Certified Public Accountants (FICPA) remains committed to addressing the state's accountant shortage and plans to reintroduce the legislation in the next legislative session. This setback highlights the difficulties Florida faces in adapting its licensure policies to meet the increasing demand for qualified accountants.

This situation exemplifies the varied approaches states are taking to tackle the national accounting talent shortage. While some states are successfully implementing reforms to streamline licensure and attract more candidates, others, like Florida, are still working through legislative challenges.

Addressing the Accounting Shortage in the USA

The accountant shortage in the USA presents a growing challenge, but it also offers a unique opportunity for the industry to collaborate and drive lasting change. 

By working together—firms, regulators, educators, and policymakers—everyone can contribute to building a new generation of skilled and passionate accounting professionals.

Here are some strategies to tackle the shortage:

1. Grant Accounting a STEM Designation - Granting accounting a STEM designation can boost its visibility, attract funding, and make it a more appealing career choice for prospective students. This will help strengthen the pipeline of future talent and reduce the accountant shortage in the USA.

   
   

2. Improve Access to Quality Accounting Education - Support high schools in enhancing their accounting programs, ensuring students learn both financial and managerial accounting in depth, not just basic business concepts. This will help ease the growing accountant shortage by 2025.

   
   

3. Leverage Legislative Support and Funding - If enacted, the Accounting STEM Pursuit legislation could provide federal funding to help high schools develop or strengthen accounting curricula, building a strong pipeline of talent from high school into the profession.

   
   

4. Create Impactful High School Initiatives - Designing curricula, workshops, and clubs that highlight the value of accounting can increase student interest. Emphasizing financial literacy, business knowledge, and strong job prospects will also help alleviate the CPA shortage in the USA.

   
   

5. Partner with AICPA and State CPA Societies - Collaboration with organizations like the AICPA and state CPA societies, along with training for high school educators, will be essential for addressing the ongoing public accounting shortage. These partnerships will play a key role in ensuring the success of the industry’s efforts.

   
   

6. Increase Exposure and Awareness Among High School Students - Studies show that many career choices are made before students reach college. Providing high school students with a clear understanding of the accounting profession’s responsibilities, rewards, and importance can help close the gap and address the shortage.

The Future of Accounting Lies in Action

The shortage of accountants is a wake-up call. States are stepping up with bold moves, but it’s not enough to sit back and wait. 

The profession needs fresh, passionate minds. Schools must show students the value of accounting, and firms need to make the career path clear and rewarding. If we want to tackle the CPA shortage, it’s time to push for CPA licensure reform and take real action. 

The ball’s in our court, are we ready to act?