Table of Contents

Why Is There Such a Bad Accounting Shortage? A Few Thoughts From an Aspiring Accountant!

Why is there such a bad Accounting shortage? As someone who just recently graduated with a BA in Accounting, and who is currently studying for FAR, I will tell you that there is such a bad Accounting shortage because, in the short term, Accounting SUCKS! Yes, that’s right, as an aspiring Accountant who literally loves Accounting, I will tell you right now that Accounting is rough. I think that people aren’t willing to make the short-term sacrifice for the long-term gain, which is why we see people bailing out of the profession, as well as people not lining up to become CPA’s in the current pipeline.

In this blog post, I’ll tell you all of the benefits of being a CPA, as well as all the downsides of being a CPA, and stay tuned because I’m going to give you my complete and honest story of exactly what trials I had to go through just to get this far in my CPA journey. As always, be sure to read on or subscribe to our blog for additional details and information on all things Accounting.

Here are some of the things I have done so far to become an Accountant:

Put SEO and writing on hold
Put dating on hold
Finished a BA in Finance from a State college
Finished an AA in Finance from a State College
Finished a BA in Financial Planning from a state college
Finished a BA in Accounting from an accelerator school, known as Western Governors University
Currently working on passing the CPA Exam after obtaining approval, which was a battle in its own respect
Taking the CPA Exam
Will need a Master’s Degree in Accounting from Western Governors University
Plan to finish my CFP Designation as a backup in case I need to pivot (LOL)

All of this combined has probably been a ~10 year journey since starting college. My specific courses towards being a CPA that are finance-related are around 5 years.

Why The Sacrifice to Be An Accountant Is So Tough Up Front

Take a quick look at the list above. In the state of Ohio, you basically need a BA degree with 9 Accounting classes, one consisting of Tax and one consisting of Audit in order to qualify to sit for the CPA exam. This is just to SIT for the CPA exam. By far, this is the most difficult business major, with tons of study hours that add up to not having dates or much of a social life. I had an Accounting professor who used to say, “If you become an Accountant, you will accelerate your career, but for about the first 5 years, you do not have a life.” I never understood what he meant back then, but now I am driving towards becoming a CPA — funny how life works.

Add to that the CPA exam itself, which takes roughly 750–1,000 hours of focused studying for the average candidate. Top that off with needing essentially a master’s degree worth of additional credits, 1 year of work experience from a public accounting firm, and then going through the NASBA CPA exam application process again to get your actual CPA license. At this point, you’re at maybe $70,000/year as a second-year associate, with 60–70 hour workweeks for the foreseeable future. It’s a cross between engineering and investment banking — no wonder there’s a pipeline problem.

Why People Are Bailing Out of the Profession

Turns out, more people value having a life and family outside of work than originally thought. Even career- and money-obsessed individuals have found other ways to make money in fields like industry or computer science, which often pay better and provide a significantly better work-life balance compared to public accounting.

Why CPA’s Are Retiring

On the back end of the pipeline, older CPA’s are retiring because they literally cannot keep up with all the new regulations. I’ve had conversations with senior CPA’s in Wealth Management where I actually had to correct them on topics like RMDs and related tax matters. There’s way too much information to keep up with. The upside? If you reach the Senior Accountant level, the sky is the limit if you have your CPA license and put in the hours.

Why Tax Work Is Especially Non-Interested In

Tax is a massive reason for the shortage. No one wants to keep up with all the constantly changing regulations. Talking with both lawyers and CPA’s, being a tax CPA is almost equivalent to being an attorney in terms of reading volume. Title XXVI is basically your bible and lifeblood throughout this profession.

Final Thoughts On Why Is There Such a Bad Accounting Shortage?

There you have it: too long of hours, constantly changing regulations, massive barriers to entry, and other lucrative fields with better work-life balance all combine to create an Accounting pipeline problem. I imagine this either leads to more international hires or US salaries for CPA’s increasing significantly. For more details and information on all things business and finance, thanks for reading!

Cheers!
InflationHedging.com

Sources:

Personal experience as an aspiring CPA
Western Governors University Curriculum
NASBA CPA Exam Guidelines
Discussions with senior CPA professionals in Wealth Management

Sources

Disclaimer

The opinions expressed in this article are solely those of InflationHedging.com and its authors. This content is for informational purposes only and should not be construed as financial, tax, or legal advice. Always consult a qualified CPA, tax professional, or financial advisor regarding your specific situation. Some links on this site may generate affiliate commissions, which help support the operation and growth of the website.