Navigating the CPA Pipeline Shortage as an Employer

The accounting profession is currently grappling with a major talent shortage widely referred to as the “CPA pipeline crisis.” This term reflects a troubling trend: the number of individuals entering the accounting field and earning their CPA certification is steadily declining, even as demand for accounting services continues to rise.

For employers, especially those hiring for CPA jobs or restructuring accounting teams, this shortage presents a significant challenge. Without sufficient new talent to replace retiring accountants, staffing for critical financial and compliance roles has become increasingly difficult. In order to remain successful in this industry, it’s crucial that hiring managers understand the roots of this crisis and how it can be addressed. This guide will take you through what the crisis is, how it came to be, and how employers are doing to combat it in hopes of it not becoming a long term industry-wide issue.

What’s Causing the CPA Talent Shortage?

Retirement of Experienced CPAs

One of the primary factors behind the CPA shortage is the wave of retirements among baby boomer professionals. Many seasoned accountants are reaching retirement age, leaving behind vacancies that younger generations aren’t filling quickly enough. While this generational shift was anticipated, the low replacement rate has created a pronounced gap in the workforce. As accountants with lengthy experience and tenure, their positions are not getting backfilled as quickly as preferred by industry standards.

Burdensome Licensure Requirements

Becoming a CPA is no small feat. In addition to earning a bachelor’s degree, aspiring CPAs must often complete 150 credit hours—effectively a fifth year of education—before they can even sit for the CPA exam. On top of this, the exam itself is rigorous and expensive. As a result, many students are deterred by the high cost and time investment, especially when entry-level CPA salary figures may not appear to justify the effort.

Limited Awareness and Wage Concerns

Another contributing factor is a lack of understanding among students and early-career professionals about the long-term career opportunities that come with CPA certification. Without strong guidance or mentorship, accounting majors may graduate without ever considering CPA jobs. Compounding this issue are concerns over stagnant wages in entry-level roles, which can make alternative career paths seem more attractive—even if they don’t carry the same long-term potential. Current college students tend to be focused on the quick reward of their major and potential earnings, and don’t anticipate the long-term pay out of the CPA path.

A Shift Toward Flexible and Remote Work

After the large push to remote work in response to the pandemic, the modern workforce values flexibility more than ever, and this includes accounting graduates. Careers in finance, tech, and other business functions often come with remote or hybrid work options, flexible hours, and more varied job responsibilities. Traditional CPA roles, on the other hand, are often perceived as rigid and less adaptable to remote environments. This perception is pushing some of the brightest accounting minds toward other industries with more work-life balance and modern workplace norms that reflect the changing times.

How Employers Are Addressing the CPA Pipeline Crisis

While the challenges are serious, the industry is not standing still. Employers and professional organizations are taking meaningful steps to reverse the pipeline decline. Here’s how companies are adapting:

Internal Training and Development Programs

To build CPA-level skills from within, many companies are developing robust internal training initiatives. These programs offer support for CPA exam preparation, mentorship, and skill development to help employees advance toward certification. For employers, this can be a cost-effective way to retain top talent and ensure continuity to support and promote their own talent for long term success.

Partnerships with Trade and Professional Organizations

Employers are increasingly partnering with trade associations, local CPA societies, and staffing agencies to broaden their recruitment reach. These partnerships help connect companies with motivated candidates who may already be on the path to CPA certification or are open to upskilling. The wider reach of these third parties are helping to expand the potential for locating top talent.

Integrating AI for Administrative Efficiency

To reduce the workload on existing CPA teams, some firms are exploring AI tools that handle repetitive administrative tasks. These solutions free up time for accountants to focus on strategic financial work and reduce the burnout that can come from long hours of manual data entry or reconciliations. With less time dedicated to mind-numbing activities, employees feel like their time is more properly focused on the tasks they enjoy performing.

Strengthening College and University Ties

Forward-thinking employers are building relationships with academic institutions to raise awareness of CPA careers. Students can’t conceptualize what an accounting roles could look like without a being presented the whole picture. By speaking to students early—through guest lectures, internship programs, and mentorship—companies can better position the CPA license as a compelling and viable career path.

Emphasizing Career Growth and Culture

Retaining accounting talent often comes down to creating a workplace culture that supports professional development, collaboration, and upward mobility. Employers that invest in leadership pathways and recognize employee achievements are more likely to retain high-performing accountants. When an employee can clearly see their path forward, they are more motivated to stick around.

Offering More Flexible Work Options

Flexibility is no longer a perk—it’s an expectation. In response, companies are beginning to offer hybrid schedules or remote-friendly CPA jobs where feasible. This not only attracts younger candidates but also improves retention across all experience levels, and brings in more potential to hire efficient and high performers.

Is the CPA Pipeline Crisis a Short-Term Problem?

The CPA pipeline crisis is not likely to resolve itself in the short term. Even with today’s efforts, developing new CPAs takes years due to the academic and licensure requirements involved. However, with consistent investment in recruitment, training, and workplace modernization, it is possible to rebuild the pipeline over time.

That said, companies that begin adapting now—rather than waiting for the talent shortage to worsen—will be in the strongest position to succeed. Those that align their strategies with the evolving expectations of accounting professionals will have a significant competitive edge in the market for top talent.

The CPA pipeline crisis presents a clear call to action for employers in accounting and finance. While systemic challenges persist, the opportunity exists to lead the way forward by reimagining how CPA roles are structured, promoted, and supported.

Whether your organization is facing challenges filling accounting jobs, looking to restructure a finance department, or simply planning for future succession, the key lies in proactive talent planning.

Ready to Fill a CPA Role or Build a Stronger Accounting Team?

At Professional Alternatives, our accounting recruiters specialize in helping employers connect with qualified, motivated CPA candidates—even in a tight market. If you’re looking to hire a licensed CPA, fill accounting jobs, or enhance your recruiting strategy for finance talent, we’re here to help.

Contact us today to learn how our targeted search process can streamline your hiring efforts and connect you with the accounting professionals your team needs to thrive. Start hiring top talent today!