Accountants & auditors | Data USA (2024)

FAQs

Is there a shortage of accountants and auditors? ›

There are 340,000 fewer accountants than five years ago, according to a Bloomberg analysis of data from the Bureau of Labor Statistics, leaving the U.S. with only 1.6 million. And the talent pipeline is drying up.

A confluence of factors is driving the US accountant shortage: Retiring Workforce: A large portion of experienced accountants are approaching retirement, leaving a significant knowledge gap to fill. Declining Interest: Fewer students are entering accounting, potentially due to outdated perceptions of the field.

A report from the American Institute of Certified Public Accountants (AICPA) found a 33% decline in first-time candidates taking the national certified public accountant (CPA) exam from 2016 to 2021. There is a growing shortage of certified public accountants and the profession is aging, with 75% at retirement age.

The biggest misconception is that AI will replace accountants and auditors. It will not replace us but elevate us to the higher level of thinking and service.

Long working hours and job pressures can affect an accountant's well-being, resulting in burnout and a lack of job satisfaction. The consequences of an unhealthy work-life balance can be far-reaching, both at work and in personal life, affecting relationships, physical and mental health, and overall happiness.

Almost every industry has a rising need for CPAs to manage their growing financial and accounting needs. A CPA's job roles and opportunities are diverse and extensive, and the demand for these highly skilled professionals will not wane anytime soon.

Higher starting salaries with other majors was the top reason why non-accounting majors who had considered the field decided against it, according to a survey of nearly 500 students this spring by the Center for Audit Quality, an industry group.

The average age of CPAs in the US is now 43, and trending older each year.

What makes the CPA Exam so hard? The CPA Exam is so difficult because: It covers a wide variety of topics at different skill levels. It tests those topics using multiple question types, including some that simulate real-world tasks CPAs are expected to perform.

Accountants aren't going away—why you don't need to worry

You just need to embrace these inevitable changes. By harnessing existing technologies, such as artificial intelligence, machine learning, cloud computing, automation, and other helpful tools, you open your services for evolution rather than extinction.

What age do accountants retire? ›

In firms whose net fees are between $5 million and $10 million, over ¾ of the firms have mandatory retirement which is on average at age 65. However, some firms require partners to retire at age 62. Only in one firm is mandatory retirement at age 70.

States with the most accountants and auditors in the U.S. 2022. In 2022, California was the state with the highest employment level in accounting and auditing, with approximately 160,000 working within this industry.

Leadership and management roles are another category of jobs that AI cannot replace. To become a manager, a strong vision, strategic thinking and the ability to motivate team members are essential. It is almost impossible for AI to develop and demonstrate these qualities.

The demand for talented accountants with financial statement management skills is expected to remain high. Accurate management of financial statements is an extremely important task for companies.

There are too many skills that AI is not yet able to replicate, which is a sign that auditors are safe for now. Even if or when AI surpasses humans in its ability to detect errors and recommend the most efficient ways of fixing them, there will still be a place for humans in the process.

Job Outlook

Employment of accountants and auditors is projected to grow 4 percent from 2022 to 2032, about as fast as the average for all occupations. About 126,500 openings for accountants and auditors are projected each year, on average, over the decade.

The U.S. Bureau of Labor Statistics (BLS) projects employment of accountants and auditors to grow 4% from 2022 to 2032, with about 126,500 job openings each year, on average, over this period. This growth is projected on a national level and local growth will vary by location.

Auditors typically earn more money than accountants because employers tend to pay for their services at higher rates.

Many would agree that the most significant reason for the decline in accounting majors is the 150-hour requirement. Aside from having to pay an additional year of tuition, many students traditionally wait until they graduate before they work full-time at an accounting firm.