The 2023 Top 100 People: Fixing the pipeline problem

December 20, 2023 9:00 AM

The talent shortage is currently the biggest challenge in accounting — as the 2023 Top 100 Most Influential People have all attested. But how would this year's top leaders and innovators recommend the profession remedy the this urgent issue?

We asked the T100: "How would you fix the pipeline problem of too few people entering the profession?" Their responses ranged from better messaging and branding of the job — including the broader opportunities afforded today's CPAs — to better use of supporting technology, to changing CPA licensure requirements, among many other ideas.

(To see the full responses of all the candidates for the Top 100, click here. And to read what other important issues the T100 identified, click here.)

Change the messaging from the negative (hours worked) to the positives about the opportunity for life-long learning, being a part of a unique ability team, adding value, growing financially, and having multiple career opportunities within your firm and the profession. The return on investment is exponential for those with the mindset of life-long learning and personal development.

— L. Gary Boomer, founder, visionary & strategist, Boomer Consulting Inc.

I see relevancy as our key issue, with starting salaries right there. That said, I do think a holistic approach will ultimately bear the most fruit. I am supportive of the drive to add accounting to the "T" of technology, but don't believe that alone will fix the problem.

I am extremely supportive of competitive salaries for those entering and staying the profession, but I don't believe that alone will fix it either. And I certainly believe that continuing to focus on making our profession as equitable, diverse and inclusive as the communities we serve will encourage students of all backgrounds to consider the profession, yet I don't think that alone will fix our challenges.

Essentially, I think we need to push every viable idea, from relevancy, to accounting as STEM, to a truly diverse profession, and absolutely one with competitive salaries if we want to truly move the needle. A holistic and consistent approach is our best option.

— Calvin Harris Jr., CEO, New York State Society of CPAs

Geni Whitehouse of the Information Technology Alliance

We must first change the educational focus from technical, rules-based topics to more practical hands-on experience with real business problems, applied technology, and analytics. We must attract well-rounded students with strong personal skills who come from diverse backgrounds.

— Geni Whitehouse, president, Information Technology Alliance

We could start by being more active at the high school level educating the youth about what CPAs really do. There are a lot of myths and stereotypes that need to be overcome. Eliminate the 150-hour rule, since there is no evidence that it produces more quality accountants. Allow CPA candidates to get credit for internships or even running their own businesses. I would go so far as to deregulate the profession, and rely on self-governance to administer entrance, quality and sanctions for misconduct.

— Ron Baker, founder, VeraSage Institute

Okorie Ramsey of the AICPA and Kaiser Permanente

We must own and change the narrative regarding our profession and why it is a great field to build a career. We must tell our own stories and help young people better understand what we do and how it is quite different than what they might perceive.

If we do not tell our story, others will tell our story for us and there is no one better than your friend, neighbor, local business leader that is working within the profession to share the impact and value of what we do to grow and support firms, businesses, and economies domestically and internationally.

— Okorie Ramsey, chair, AICPA & Association of International Certified Professional Accountants

Go after those people looking for a second career and show them how working in accounting is an opportunity to change their lives. After teaching for years at the community college, these future professionals have a lot to offer and are too often overlooked by hiring managers and firms because they don't fit the stereotypical intern or first-year hire. Their broad base of other experience is an overlooked opportunity that could make a real difference in firms today.

— Jody Padar, VP of tax strategy & evangelism, April

Gittings Global - NE92452

The accounting profession must adapt and evolve and reinvent itself. Fostering a more inclusive and diverse environment can help attract a broader range of talent. Additionally, embracing technology and data analytics to streamline and automate routine tasks can make the profession more appealing to those seeking a dynamic and forward-thinking career.

By modernizing its image and embracing innovation, the profession can better meet the evolving demands and expectations of the workforce of today and tomorrow, allowing it to become a more attractive career choice.

— Rhonda Clark, executive director, Association for Accounting Marketing

To address the shortage in the accounting pipeline, it's crucial to recognize the limitations of the 150-hour credit rule for becoming a CPA. This rule was implemented without adequate consideration for equity, financial barriers, and the time commitments faced by underrepresented communities.

To fix this issue, we should embrace diverse pathways to achieving CPA licensure, such as work experience and stackable certifications, in addition to a rigorous examination process. By doing so, we can make the profession more accessible and appealing to a broader range of individuals, including those who might have been deterred by the traditional 150-hour requirement and the additional cost to achieve it.

— Guylaine Saint Juste, president & CEO, NABA Inc.

Clearly, we need to get rid of the 150-hour requirement for CPA eligibility. It makes no sense to me that we require an extra 30 hours of college credit without any requirement for what those hours consist of. It is an obvious unnecessary barrier to entry.

The profession's starting salaries also are not keeping up with alternative business school degrees that only require 120 hours of college credit. I think we are getting away with lower starting salaries through alternative sources for staff, such as offshoring, but I don't think that is sustainable in the long run.

We also need to do a better job of overcoming the profession's reputation as a sweatshop career. Many firms no longer require significant overtime, but young people still think of the profession based on the way it used to be with 80 hour weeks being routine during busy season.

— Terry Putney, managing director, Whitman Transition Advisors LLC

We need to energize and excite high school students about the field of accounting and the many, many opportunities that are available by studying accounting and becoming a CPA. Whatever specific passion a young person has — an accountant in needed in that area. If they want to focus on finance, sustainability, fashion, technology, movies, sports — whatever it is, accounting is a way to get to their dream job.

Everyone needs an accountant, and despite the perception, accountants lead very interesting lives and no two days are ever the same. I know there are many efforts underway to inform and recruit high school students, and I think we can each do our part by volunteering in our local communities and getting the word out.

— Jennifer Burns, chief auditor, AICPA

I would begin by raising the entry-level starting compensation and migrate that increase throughout the ranks. I would eliminate the mundane and boring work and use AI/bots, as well as offshoring. Last point is, for superstars, I would accelerate their career path to partnership and eliminate seniority based and/or lock step programs.

— Allan Koltin, CEO, Koltin Consulting Group

As we all know it will take years to fix. We first need to eliminate the 150-hour requirement. Next, we need to create a better value proposition related to compensation: Pay more! And it will also help create a more favorable work-life balance.

— Gary Shamis, CEO, Winding River Consulting

Expand the definition of public accounting to include non-CPAs. This could start with the AICPA launching a non-CPA professional membership group and implementing from there. It could possibly lead to a credentialing program for non-CPAs, and perhaps a path to CPAs for individuals who are interested.

It would create an expanded pipeline, redefine an alternative career path to CPA, reconfigure workforce deployment, and otherwise lead the profession to solve many talent shortage issues.

— Gale Crosley, president and founder, Crosley+Co.

I believe that some of these problems can be corrected by offering a blended career to aspiring accountants. Most accountants can be very good technologists, but not every technologist can be a great accountant. By getting students interested in both accounting and technology (two things that are very complementary given the current landscape), it will undoubtedly benefit their future professional goals.

Additionally, I think there could be a greater push from accounting firms to actively recruit individuals while they are still in school.

— Michael Bernard, VP, tax content strategy and chief tax officer, Vertex

If I put aside census data, I would go back to where the decision is made on what careers seem interesting. For me, it was elementary school. But others, it may be 8th grade or at some point in high school. I would share consistently the unlimited possibilities of the profession by developing a cohort and after school program that promotes accounting. I would also get parents and school counselors involved. Consistency is key.

— Kimberly Ellison-Taylor, founder and CEO, KET Solutions LLC

Two primary strategies: Improve private AI automation and expand the tasks assigned to non-certified professionals to support accountants in their work. For example, data analytics providing support for financial statements could be completed by a non-CPA.

— Randy Johnston, CEO and founder, EVP, NMGI and K2 Enterprises

We need to stop focusing on what's wrong with our profession and start talking about what's right. We are an amazing profession that helps economies, communities, businesses and individuals grow and thrive. The next generation is all about purpose and we should be shouting from the rooftops — and on every social media channel: this is a profession that makes a difference.

— Susan Coffey, CEO, public accounting, Association of International Certified Professional Accountants

We must change the narrative to a focus on the outcomes we are able to drive, and those outcomes must transcend compliance work (which is perceived to be a utility). An emphasis on financial measurements, though more appealing than compliance, is still not going to address the pipeline issue.

To make the profession appealing to college students, advisory must be the defining quality of the profession. We must not be a community of professionals who do accounting work with a layer of advisory. We must be a community of professionals who do advisory with a layer of accountancy. Accounting will be exciting again once people realize that accounting professionals are the protectors of the small business journey, the mentors of small business owners, the guardians of individual wealth and the transformers of lives.

This realization must begin from within. Once accountants start driving these transformative outcomes, the rest of the world will clammer to join the cause.

— Joe Woodard, CEO, Woodard

Addressing the pipeline problem within our profession is not a matter of a single solution; it necessitates a comprehensive approach. This involves transitioning to advisory services, reforming our compensation systems, reducing overall workload hours, embracing innovation through AI automation and implementing various other strategies.

However, a pivotal issue lies in reshaping the narrative surrounding the accounting profession today. Traditionally, we have tended to emphasize the long hours, eventual income potential and sporadic client interactions as our selling points. Frankly, this message fails to inspire interest in our field. It's time for a shift in perspective. Let's celebrate our daily significance to clients, highlight the flexibility of our work hours, showcase our innovative spirit, and underscore the exciting and rewarding life that one can build as an accounting and advisory professional.

— Sandra Wiley, president, Boomer Consulting Inc.

Donny Shimamoto of Intraprise Techknowlogies

I believe a rebranding of the entire profession is needed. We need to become less CPA-centric and embrace all accounting disciplines as well as nonaccounting disciplines. I believe if we show people how important of a role we play in helping people achieve the American Dream and also ensuring that corporate America makes more ethical, mindful decisions, that we can capture not just the mind, but the hearts of the next generation.

— Donny Shimamoto, founder and managing director, IntrapriseTechKnowlogies LLC