More accountants are leaving the field than joining. What’s going on? | Kelly Richmond Pope

Summary

The video script discusses the critical role of accountants in establishing trust in the business world, akin to the 'Wild, Wild West' without them. It highlights the alarming departure of 300,000 accountants in two years and the declining interest in accounting as a profession, due to factors like the 150-hour requirement for CPA exams. The script suggests that adapting educational requirements and recognizing internships as credit hours could encourage more students to pursue CPA certification, ensuring a future where financial integrity is maintained and not left to those unversed in accounting.

Takeaways

• 🌐 The absence of accountants would lead to a chaotic business environment, as they provide trust and assurance in financial matters.
• 📉 There has been a significant drop in the number of accountants, with 300,000 leaving the field in the past two years, indicating a potential crisis in the profession.
• 📚 A decline in students choosing accounting as a major and sitting for CPA exams suggests a dwindling interest in the profession among the younger generation.
• 👴 An aging workforce in accounting is retiring faster than new professionals are entering, creating a gap in the industry.
• 🔑 The '150-hour requirement' for CPA certification is a barrier, making education longer and more expensive, potentially discouraging new entrants.
• 🎓 The pursuit of an MBA alongside a master's in accounting is becoming a common path, adding to the complexity and cost of entering the field.
• 🚀 The rise of other fields like social media, ESG, and cybersecurity has drawn professionals away from traditional accounting roles.
• 💼 Organizations are beginning to offer financial support for the additional education required to become a CPA, in an effort to attract and retain talent.
• 🏫 There is a push to recognize internships as credit hours towards the 150-hour requirement to encourage more students to pursue CPA certification.
• 📈 The profession needs to adapt to appeal to Gen-Z learners who prefer different working conditions and educational paths.
• 🚨 The speaker expresses concern about a potential future where a lack of qualified accountants could lead to non-specialists making critical financial decisions.

Q & A

What would the world be like without accountants according to the speaker?

The speaker suggests that without accountants, the business world would resemble the 'Wild, Wild West,' implying a lack of regulation and trust.

What role do accountants, CPAs, and auditors play in the business world?

Accountants, CPAs, and auditors provide assurance and trustworthiness, signaling to investors and lenders that a business is reliable and its financial statements are accurate.

Why is there a concern about the future of the accounting profession as mentioned in the script?

The concern arises from the significant number of accountants leaving the field—300,000 in the past two years—and fewer students choosing accounting as a major or sitting for CPA exams.

What are some of the emerging fields that have attracted professionals who might have otherwise pursued accounting?

Emerging fields such as social media, ESG (Environmental, Social, and Governance), cybersecurity, and various IT jobs have drawn professionals away from traditional accounting.

What is the '150-hour requirement' and why is it considered a hindrance in the accounting profession?

The '150-hour requirement' is a regulation stating that accounting majors must complete 150 credit hours before they can sit for the CPA exam, which extends the duration and cost of education.

How are organizations trying to support students in completing the 150-hour requirement and CPA exam?

Organizations are offering to pay for the fifth year of college, providing scholarships, covering CPA exam fees, and study materials to encourage students to complete their accounting education.

What is the speaker's approach when talking to high school students about accounting?

The speaker focuses on presenting accounting as a versatile skill set that can be applied in various career paths, including entrepreneurship, public accounting, private companies, large organizations, or starting one's own business.

What is the best-case scenario proposed by the speaker to encourage more students to become CPAs?

The best-case scenario involves crediting internships as credit hours towards the 150-hour requirement, thereby making the path to becoming a CPA more accessible and attractive to students.

What does the speaker consider as the worst-case scenario for the accounting profession?

The worst-case scenario is the retirement of all accountants, leading to individuals without accounting backgrounds being forced to provide opinions on financial statements, which could result in inaccuracies and mismanagement.

Why is the speaker 'scared' about the potential future of the accounting profession?

The speaker is scared because the current trends indicate a possible decline in the number of qualified accountants, which could lead to a lack of trust and reliability in financial reporting.

What changes does the speaker suggest to make the accounting profession more appealing to Gen-Z learners?

The speaker suggests changes such as offering financial support for the additional years of education, emphasizing the flexibility and diverse applications of accounting skills, and potentially reevaluating the 150-hour requirement.