The number of bachelor's degree completions in accounting dropped by nearly 8% between the 2021 and 2022 academic years, according to a new report from the Association of International Certified Professional Accountants.
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Bennett LeckroneRead Full BioReporter, Business Education
Bennett Leckrone is a news writer for BestColleges. Before joining BestColleges, Leckrone reported on state politics with the nonprofit news outlet Maryland Matters as a Report for America fellow. He previously interned for The Chronicle of Higher Ed...
Published on October 27, 2023
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Darlene EarnestRead Full BioEditor & Writer
Darlene Earnest is a copy editor for BestColleges. She has had an extensive editing career at several news organizations, including The Virginian-Pilot and The Atlanta Journal-Constitution. She also has completed programs for editors offered by the D...
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By
Bennett LeckroneRead Full BioReporter, Business Education
Bennett Leckrone is a news writer for BestColleges. Before joining BestColleges, Leckrone reported on state politics with the nonprofit news outlet Maryland Matters as a Report for America fellow. He previously interned for The Chronicle of Higher Ed...
Edited by
Darlene EarnestRead Full BioEditor & Writer
Darlene Earnest is a copy editor for BestColleges. She has had an extensive editing career at several news organizations, including The Virginian-Pilot and The Atlanta Journal-Constitution. She also has completed programs for editors offered by the D...
Published on October 27, 2023
Learn more about our editorial process
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- Bachelor's in accounting degree completions dropped 7.8% between the 2021 and 2022 academic years , according to a report from the American Institute of Certified Public Accountants (AICPA).
- That represents a greater decline than in previous years.
- Master's degree completions also fell, but that decline is less than in previous years.
- Programs were largely optimistic about future enrollment figures.
Fewer people are graduating with accounting degrees, according to a new report, although most programs are optimistic about enrollment.
A survey from the American Institute of Certified Public Accountants (AICPA) found that bachelor's degree completions dropped 7.8% between the academic years of 2021 and 2022. That represents a major drop compared to previous years: The 7.8% fall follows a gradual decline of between 1-3% per year since the 2015-2016 academic year.
Master's degree completions also fell by 6.4% between the 2021 and 2022 academic years, but that decline is less than previous years.
The decline in degree completions comes amid a nationwide accounting shortage that has been worsened due to retirements, barriers to entry, and accountants moving to other financial roles, according to The Wall Street Journal.
A decline in the number of people entering the accounting field has led to difficulties for public and private organizations alike in filling key roles, according to the Society for Human Resources Management. Groups like the Cato Institute have called for certified public accountant (CPA) licensing reform to reduce barriers to entry in the field.
The requirements for a career in accounting include required exams, with people who want to become CPAs having to pass the Uniform CPA Examination via their state board of accounting.
An accounting degree can prepare students for a wide variety of fields beyond just the traditional CPA route, with positions like financial advisor, budget analyst, real estate appraiser, and other fields in the broad field opening up with a degree.
The Bureau of Labor Statistics projects that the number of jobs for accountants and auditors will rise by 4% between 2022 and 2032. This is slightly higher than the projected 2022-2032 growth rate (3%) for all U.S. occupations.
The degree can also yield a high return on investment: BestColleges previously reported that financial specialists like accountants, auditors, analysts, and advisors earn 69% more than the average worker across all industries in the U.S.
The CPA pipeline is a shared priority for everyone in the accounting profession,
the AICPA report reads. The AICPA has taken many steps to strengthen the profession's talent outlook, and convening the National Pipeline Advisory Group is among the most important steps taken. The group is assessing factors contributing to trends in accounting majors and CPA licensure and will develop a cohesive, agile national plan for the profession that is inclusive of its many stakeholders.
While the number of degrees awarded was down, bachelor's and master's programs in the AICPA survey were optimistic about future enrollment.
More than 70% of both bachelor's and master's programs that responded to the AICPA survey said they expect enrollment in the 2023-2024 academic year to be the same or higher as in 2021-2022. Hiring firms that responded overwhelmingly indicated that they would hire the same or more new accounting graduates in the next year.
FAQs
The number of bachelor's degree completions in accounting dropped by nearly 8% between the 2021 and 2022 academic years, according to a new report from the Association of International Certified Professional Accountants.
Are the numbers of CPAs declining? ›
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.
Are accounting graduates declining? ›
Overall, the number of U.S. accounting graduates with either degree dropped 7.4% to 65,305 in the 2021 to 2022 year, the largest drop in a single year since at least the 1994 to 1995 year, when 51,622 students graduated in accounting, a review of AICPA data showed.
How many people graduate with an accounting degree? ›
The report, 2023 Trends: A Report on Accounting Education, the CPA Exam and Public Accounting Firms' Hiring of Recent Graduates, found that about 47,000 students earned a bachelor's degree in accounting in the 2021–22 school year, down 7.8% from the previous year.
Why is there a shortage of CPAs? ›
This shortage is a result of various factors, including voluntary resignations, the retirement of Baby Boomer accountants, and a lack of interest among young people due to misconceptions about the profession. As a result, there will be a competition for talent, especially for larger international firms, in 2024.
Why are less people majoring in accounting? ›
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.
Will CPAs be replaced by AI? ›
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. Basically, it takes away the mundane repetitive tasks that we never really wanted to do in the first place.
Why are so many accountants leaving? ›
Career Flexibility and Work Arrangements
The rise of remote work has been one of the driving factors behind this trend, with many accountants wanting to work from home or other locations outside the traditional workplace.
Will accountants be phased out? ›
As generative artificial intelligence (AI) takes over more mundane and repetitive tasks, some accounting jobs are at risk of disappearing, Accounting Today reported. But the accountants whose jobs are replaced become free to perform more high-value work.
Is accounting an obsolete major? ›
According to WEF, your accounting role is in jeopardy. They expect accounting as it's performed today to be phased out by 2025. The WEF's logic is: Increasing existing technology is edging out the need for accountants.
An accounting degree lays the foundation for many careers in business, including entrepreneurial ones. Once you gain experience and establish business contacts, you may consider starting your own business. Whether in tax accounting or consulting, you can pursue several avenues with an accounting background.
Can you make 6 figures with an accounting degree? ›
A CPA salary usually reaches the high five figures, and senior CPAs in management can earn a six-figure salary.
What degree do most accountants have? ›
While multiple fields of study can lead to a career as an accountant, earning a bachelor of science in accounting is the most direct option.
Are CPAs in decline? ›
- According to the AICPA, there is a 33% decline in first-time candidates taking the CPA exam. - In 2022, there were 1.6 million Accountants/Auditors in the profession.
Why is CPA pass rate so low? ›
The CPA Exam has a low pass rate because there is a lot of material covered in the exam and much of it is complex. Studying with a trusted review provider can dramatically increase your chances of passing.
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.
Why are so many CPAs quitting? ›
Craving more meaningful projects, creative problem solving and engaging work experience, many accountants leave the field to explore other career options where they can have a deeper sense of purpose and impact.
Will CPAs become obsolete? ›
Accountants aren't going away—why you don't need to worry
As an accountant, the roles you play in business are vital. You just need to embrace these inevitable changes.
Are CPAs high in demand? ›
Specialization in Niche Areas:
There is a growing demand for CPAs with expertise in specific areas, such as tax accounting, forensic accounting, international accounting, and technology consulting. CPAs specializing in these areas can command higher salaries and have more career options.
What is the future outlook for a CPA? ›
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.
