75% Gone! CPA’s Exit! India US CPA Enters vs. Chartered Accountant UK. Offshore Staffing.

Summary

In this video, the speaker delves into the evolving role of CPAs in the global workforce. They emphasize the value of the CPA designation worldwide, suggesting that the American Institute of CPAs' decision to extend the credential globally is a strategic move. The speaker highlights the difference between currency issues and offshoring, explaining how foreign CPAs are paid well in their countries. They stress the growing opportunity for CPAs in the U.S. as fewer professionals enter the field, encouraging viewers to embrace the global demand for the CPA profession. The video closes with a reflection on the unique nature of both the speaker and the audience.

Takeaways

• 😀 The CPA designation is respected globally due to its history and the integrity of the profession.
• 😀 The value of the CPA credential has increased as people around the world seek it, which enhances its prestige in the US.
• 😀 The AICPA's decision to allow foreign countries to obtain the US CPA designation is seen as a way to fill labor gaps and maintain the global value of the credential.
• 😀 The demand for US CPA credentials in countries like India and Latin America is driven by a significant wage difference, not by job offshoring.
• 😀 Currency differences explain why labor costs may be lower in countries like India, but it doesn't equate to job loss in the US.
• 😀 The notion of 'protecting American CPAs' is outdated as global demand for the CPA credential only increases its value.
• 😀 Fewer people in the US are entering the CPA profession, creating a potential opportunity for those who choose this career path.
• 😀 The CPA designation is not just a title; it is a symbol of expertise and trust, which is recognized internationally.
• 😀 The AICPA's global expansion is strategically designed to ensure that the workforce supporting US CPAs is qualified, regardless of location.
• 😀 The speaker encourages embracing the global recognition of the CPA designation, viewing it as an opportunity rather than a threat.

Q & A

Why is the CPA designation globally respected?

The CPA designation is globally respected because it represents a high level of professionalism, integrity, and expertise in the accounting field. It is recognized worldwide due to the rigorous standards maintained by the American Institute of CPAs (AICPA), which ensures that CPAs are highly skilled and ethical.

How does the speaker view the impact of foreign CPAs on the U.S. job market?

The speaker believes that foreign CPAs, particularly from countries like India and Latin America, are not taking jobs away from Americans but are filling essential gaps in the workforce. They emphasize that the influx of international CPAs is due to a global demand for accounting services and a currency difference, not a job displacement issue.

What is the speaker's stance on the American CPA designation being granted to professionals in other countries?

The speaker supports the American Institute of CPAs allowing professionals from other countries to obtain the U.S. CPA designation. They believe this decision strengthens the global recognition of the CPA and ensures that international workers can support U.S. businesses effectively, especially if they are working with American CPAs.

How does the speaker respond to concerns about offshoring jobs to countries like India and Latin America?

The speaker challenges the idea that offshoring is harmful by explaining that, from a financial perspective, the compensation for CPAs in countries like India is still significantly higher than what they could earn in other local jobs. This is attributed to currency differences, not a loss of jobs for U.S. workers.

What does the speaker mean when they say the CPA designation is valuable because it is sought after globally?

The speaker means that the demand for the U.S. CPA designation outside of the U.S. demonstrates the global value and recognition of the qualification. This international recognition enhances the prestige of the designation, making it even more valuable for U.S. CPAs in the domestic market.

How does the speaker justify the global spread of the CPA designation as beneficial?

The speaker justifies the global spread of the CPA designation by arguing that it ensures a higher standard of accounting practice worldwide. It also helps address the shortage of qualified professionals in the U.S., benefiting both American CPAs and international workers who want to serve U.S. clients.

What problem does the speaker identify with the perception of CPAs who only hire American professionals?

The speaker criticizes CPAs who insist on only hiring American professionals, arguing that this view is outdated. They suggest that the profession's growth and the evolving workforce dynamics require a more inclusive approach, allowing skilled international CPAs to contribute to the U.S. market.

Why does the speaker argue that the AICPA's decision to grant the CPA designation internationally is strategic?

The speaker argues that the AICPA's decision is strategic because it ensures that international workers who are supporting U.S. businesses are well-qualified. By making the CPA designation globally accessible, the AICPA is maintaining the integrity and quality of the profession while addressing workforce shortages.

What is the 'currency difference' argument presented by the speaker?

The 'currency difference' argument is the idea that when CPAs from countries like India and Latin America earn a U.S. CPA designation, their pay, though lower compared to U.S. standards, is still significantly higher than their local wages. This is not a matter of offshoring jobs, but rather a reflection of the different economic landscapes and currencies.

What overarching message does the speaker want to convey in the video?

The overarching message is that the accounting profession is evolving in a global context, and that the CPA designation's international recognition benefits both U.S. businesses and foreign professionals. The speaker encourages a more open-minded approach to the global nature of the profession and emphasizes the value of the CPA designation as a global standard.