Where have all the CPAs gone? Understanding the accounting shortage—and what employers can do about it 

The certified public accountant (CPA) talent pipeline is drying up. Here’s what’s causing the shortage, and how forward-thinking companies are staying ahead of it. 

Key takeaways 

• The overall accounting shortage, including CPA’s, is intensifying due to retirements, declining enrollment, and licensing barriers. 

• Businesses must adopt new technologies or new talent strategies, like partnering with a professional services organization such as Highspring, to fill critical accounting roles. 

• Proactive workforce development and flexible pathways can help close the talent gap. 

It’s not easy to become a CPA these days, and the decreasing number of professionals seeking accounting as a career is compounding the issue. By the end of 2025, it’s predicted that there will be a shortfall of more than 200,000 CPA positions in the U.S., with the number of people taking the CPA exam at its lowest point in 17 years. Research shows that it’s more difficult to pass the CPA exam—with an estimated 50% passing on their first try—than it is to pass the bar exam to become an attorney, where about 70% pass on their first try. 

What the accounting shortage means for businesses 

The accounting shortage is creating cascading effects throughout organizations, touching every aspect of financial management and strategic decision making. It causes operational bottlenecks and delays, such as extending the timeline for month-end closes. Audit preparations become prolonged events, with companies unable to provide timely documentation or explanations for complex transactions. These delays don’t just affect internal operations, they ripple to investors, lenders, and others who depend on timely, accurate financial information. 

Why the accounting shortage is getting worse 

There are several factors driving the accounting shortage, including fewer accounting graduates, an aging CPA workforce approaching retirement, and increasing demand for accounting services due to business and regulatory needs. The shortage is expected to worsen, potentially impacting financial stability, compliance, and business growth. Let’s dig deeper into the reasons behind the shortage. 

Increased demand 

According to the U.S. Bureau of Labor Statistics, demand for accountants is projected to grow by 6% by 2033, while the supply of qualified professionals is continually shrinking. Recent legislation is expected to accelerate this demand even further, particularly in areas like tax planning and compliance for high-net-worth individuals and businesses. Changes tied to tax deductions, investment incentives, and overtime exemptions are also creating new advisory opportunities, especially in corporate restructuring and M&A. 

Retiring baby boomers 

According to Simandhar Education, approximately 75% of existing CPAs are baby boomers nearing retirement, creating a significant experience gap.  

Declining enrollment 

There’s been a noticeable decrease in the number of students choosing accounting as their major, further impacting the pipeline of future accounting professionals. Some propose reconsidering the 150-hour requirement for CPA licensure, as research suggests it may not be a significant factor in job performance.  

Strategies to attract and retain accounting professionals in a challenging environment  

Organizations can’t rely on traditional talent approaches anymore. Meeting demand means getting creative about how roles are filled, structured, and supported. Here are some strategies to get you started. 

Reimagine your talent model with strategic outsourcing 

Rather than struggling to fill internal positions, organizations can partner with a professional services organization like Highspring to quickly access teams of experienced professionals who specialize in specific accounting areas. Business process outsourcing (BPO) and co-sourcing models offer flexibility, scalability, and access to niche expertise—especially during peak periods like month-end close or tax season. This approach helps companies build hybrid teams that are agile, resilient, and tailored to their unique needs with end-to-end service delivery. 

Offer competitive compensation 

According to ZipRecruiter, the average CPA salary falls between $70,000 and $120,000, with entry-level salaries typically starting around $60,000 to $70,000. Salaries also tend to be higher for professionals with niche areas of expertise. It’s important to negotiate with candidates but be clear about the salary parameters within your organization. 

Incorporate bonuses and other meaningful perks 

Organizations are often limited in the number of annual salaries or raises they can offer. One option is to offer spot bonuses for exceptional work. Other perks may include extra paid time off or small gifts of appreciation. 

Invest in ongoing training and development 

The growing complexity of tax compliance and financial reporting necessitates ongoing training, development, and education. Ensure that employees are given the time and opportunity to advance their knowledge. 

Provide clear paths for advancement 

Even during the interview stage, employees new to the field want to have a strong understanding of how they can move up in the organization. Be clear about the path forward and what’s required to succeed. 

Launch mentor and reverse mentor programs 

Seasoned accountants and employees new to the fieldcan learn from each other. Mentor programs help bring institutional knowledge and fresh perspectives to workers who may not otherwise interact.  

Focus on retaining existing talent 

Addressing burnout and improving working conditions can help retain experienced CPAs and prevent further attrition. This often comes to life by checking in regularly with employees to ensure they feel heard and supported. Consider taking noncritical tasks off their plates and helping them prioritize what needs to get done, with clear deadlines and expectations.  

Build international partnerships 

Collaborating with international universities helps create a more diverse and globally minded workforce. Studies show that diverse teams perform better, making this approach a win-win for all involved. 

Use technology to improve efficiency 

Leverage technology—including artificial intelligence (AI)—to automate routine accounting tasks and increase efficiency. By reducing manual workloads, accountants can spend more time on analysis and strategic work that drives business value. 

Create an engaging, modern work environment 

Research shows that some younger professionals hesitate to enter the field because they perceive it as overly serious or outdated. Even if your team works remotely, create virtual bonding moments—like “show us your pet” or quick get-to-know you games—to build connection and make work feel more enjoyable.  

Support your team with scalable accounting solutions 

The accounting shortage isn’t going away, but that doesn’t mean your business has to slow down. Highspring’s Managed Services offer a flexible global delivery model with end-to-end ownership, white-glove customization, and a focus on quality that scales. Whether you’re looking to fill gaps quickly or build a hybrid finance team, we help organizations accelerate results—while keeping business agile, compliant, and future-ready. 

Contact us today to learn how our Managed Services can support your finance team and help you scale with confidence.