Across the profession, CPA firms are confronting an unprecedented challenge: finding and keeping talent. The shortage is no longer cyclical; it is structural. Enrollment in accounting programs dipped for years, CPA Exam candidates declined, and many experienced CPAs are approaching retirement. Yet, the outlook is not without hope. New AICPA data shows undergraduate accounting enrollment rising again, perceptions improving among students, and licensure pathways evolving to reduce barriers to entry. For CPA firms, the opportunity lies in developing smarter strategies to recruit, retain, and elevate the accountants of the future.
In February 2025, the AICPA released encouraging numbers: undergraduate accounting enrollment increased 12% in Fall 2024 compared to Fall 2023, adding nearly 29,000 new students. This brought the total to 267,278 undergrad accounting majors, the highest since 2020 and just shy of pre-pandemic levels. For a profession that has been sounding the alarm on pipeline decline, this rebound marks a promising shift.
Even more encouraging: student perceptions of the profession are improving. A recent Journal of Accountancy report noted that students across demographics increasingly view accounting as a stable, rewarding career. Campaigns such as the CAQ’s Accounting+ have helped spotlight the profession’s diversity of roles, its potential for purpose-driven work, and its integration with technology.
CPA Exam activity also shows signs of renewal. NASBA’s most recent quarterly data indicates steady candidate activity under the new Exam structure introduced in 2024, signaling a rebound in exam participation.
Perhaps the most transformative development came in May 2025: AICPA and NASBA approved a new model CPA licensure path. Under this model, candidates can qualify with:
This offers a new alternative to the traditional 150-credit hour requirement. While adoption depends on state legislation, early signs suggest that some jurisdictions are moving quickly. For firms, this means it is time to:
By lowering financial and time barriers, this model could accelerate the flow of qualified candidates into CPA firms over the next five years.
Firms that narrow recruiting efforts to only traditional accounting majors risk missing high-potential hires. Candidates from finance, economics, computer science, and data analytics bring valuable perspectives. As the profession shifts toward advisory and technology integration, these skill sets complement traditional accounting knowledge.
With undergraduate enrollment surging, firms that show up consistently on campus will win. Strategies include sponsoring scholarships, offering paid micro-internships, and participating in co-op programs. This is the moment to secure visibility with the next generation of CPAs.
The new bachelor + 2 years path presents firms with a chance to differentiate. By building structured programs that include supervised experience, exam preparation support, and mentorship, firms can attract candidates eager to pursue licensure but wary of traditional hurdles.
Today’s candidates want more than a job; they want purpose, flexibility, and growth. Firms that highlight technology enablement, community impact, and career mobility are more likely to convert offers into acceptances. The positive perception data is an open invitation for firms to refresh their employer branding.
Recruiting new staff is only half the equation; retention is where firms can gain a long-term edge.
Clients increasingly expect strategic insight, not just compliance. By investing in staff development in advisory, analytics, and industry specialization, firms can both meet client demand and offer employees meaningful career progression.
AI and automation are reshaping the profession. By offloading repetitive work such as reconciliations and data entry, firms free their teams to focus on higher-value activities. This not only improves productivity but also enhances employee satisfaction, a critical factor in retention.
Transparency matters. Firms should create clear, two- to three-year career maps that include licensure milestones, client exposure, and leadership opportunities. When employees see a future, they stay.
While CPA firms grapple with recruiting challenges, broader market data underscores the urgency. Deloitte’s 2025 CFO Signals survey found that the majority of CFOs report critical finance talent shortages, with engagement and workload risks rising. For CPA firms, this reinforces a competitive truth: demand for accounting talent is strong not just inside firms, but across corporate America.
Recruiting and retaining talent is just one piece of the growth puzzle. The real opportunity lies in aligning strategy, messaging, and capacity to set your firm apart in an increasingly competitive market. Hollinden partners with accounting and advisory firms to connect the dots between people, positioning, and performance. Discover how our services help firms transform today’s challenges into long-term growth.
Q1. Why is the accounting profession facing a structural talent shortage?
A: The shortage stems from several long-term trends: declining enrollment in accounting programs for years, fewer CPA Exam candidates, and an aging workforce nearing retirement. These factors make the shortage structural rather than cyclical.
Q2. Is there evidence of improvement in the accounting talent pipeline?
A: Yes. According to the AICPA & CIMA, undergraduate accounting enrollment rose 12% in Fall 2024 compared to Fall 2023, adding nearly 29,000 new students. This brought the total to 267,278 undergrad majors, the highest since 2020 and nearly back to pre-pandemic levels.
Source: AICPA & CIMA News
Q3. How are student perceptions of accounting changing?
A: Student perceptions are improving. A Journal of Accountancy report notes that students increasingly view accounting as a stable and rewarding career, with growing awareness of its technology integration, diverse opportunities, and purpose-driven potential.
Source: Journal of Accountancy, Apr. 30, 2025
Q4. What recent changes affect CPA licensure requirements?
A: In May 2025, AICPA and NASBA approved a new model licensure path allowing candidates to qualify with a bachelor’s degree, two years of professional experience, and passage of the CPA Exam. This provides an alternative to the traditional 150-hour requirement.
Source: AICPA & NASBA, May 14, 2025