The Accounting Shortage: A Crisis We Can't Afford to Ignore

The numbers don't lie. Across industries and firm sizes, the accounting profession is facing a growing and concerning shortage of talent. From new graduates to experienced CPAs, the pipeline is drying up, leaving businesses scrambling to fill critical roles and putting a strain on existing teams. This isn't just an inconvenience; it's a looming crisis that could impact everything from financial reporting integrity to business growth.

But what's causing this exodus, and more importantly, what can we do about it? While there are multiple contributing factors, one often-overlooked yet critical piece of the puzzle is compensation.

The Perfect Storm: Why Accountants Are Leaving (or Not Joining)

Several forces are converging to create this shortage:

Retiring Boomers: A significant portion of the accounting workforce is nearing retirement age. The American Institute of CPAs (AICPA) reported that 75% of current CPAs are nearing retirement age, creating an estimated 136,400 annual job openings through 2034, according to the U.S. Bureau of Labor Statistics. (Mondial Software, "The 2025 Accountant Shortage: Why It's Happening?", May 2025).

Declining Enrollment: University accounting program enrollments have been on a downward trend. In 2022, there was a 7.4% decline in accounting bachelor's and master's degrees awarded—the steepest single-year drop in over 30 years (Mondial Software, May 2025). Forbes reported in March 2025 that the number of candidates sitting for the CPA exam hit its lowest point since 2006 (Forbes, "Mind The Gap: Addressing The Finance And Accounting Talent Gap In 2025", March 2025).

Perception Problems: Accounting is often perceived as a "boring" or overly challenging profession, struggling to compete with the allure of tech and other burgeoning industries. Only 1.4% of college students chose accounting as their major in 2023, down from 4% a decade ago (Mondial Software, May 2025).

Workload and Burnout: The demands on accountants, particularly during peak seasons, can be intense, leading to long hours and burnout. High workloads are cited as a significant cause of burnout (FutureFirm, "Accountant Shortage: What Does It Mean for Your Firm?", February 2025).

The CPA Exam: The rigorous CPA exam, while essential for maintaining professional standards, can be a deterrent for some.

While all these factors play a role, let's talk about the elephant in the room: are we adequately valuing our accounting professionals?

The Compensation Conundrum: Are We Paying Enough?

In many cases, the answer is a resounding "no." When compared to other professions requiring similar levels of education, specialized knowledge, and responsibility, accounting salaries can often fall short, especially for entry-level positions. For instance, a new data analyst in the U.S. might start around $68,487, while entry-level accountants often begin around $55,000 (Redwood, "Accounting Talent Shortage: Why Industry Survival Depends On Change", February 2025). This creates a disincentive for potential recruits and can lead to experienced professionals seeking opportunities in other, higher-paying fields or industries.

Think about it: a demanding four-year degree, often followed by a master's and the notoriously difficult CPA exam, all for a starting salary that might not feel commensurate with the effort and expertise required. It's no wonder some bright minds are choosing different paths. Deloitte's 2022 poll found that nearly 58% of public company hiring managers reported finance and accounting professionals leaving for higher-paying jobs (Deloitte, "Most Public Companies Are Challenged in Attracting Finance and Accounting Talent, Deloitte Finds", June 2022).

Proper Compensation: Not Just a Perk, But a Solution

Implementing proper compensation policies isn't just about being "nice" to your accounting team; it's a strategic imperative to address the talent shortage head-on. Here's how competitive and well-structured compensation can make a significant difference:

Attracting Top Talent: In a competitive job market, a strong salary and benefits package is often the first thing that catches a candidate's eye. Offering competitive pay signals that you value the profession and are willing to invest in your team. In fact, a survey commissioned by the AICPA's National Pipeline Advisory Group found that "more competitive starting salaries" was the most popular response among stakeholders for encouraging people to pursue accounting careers (Journal of Accountancy, "Pipeline plan of action: Read the Accounting Talent Strategy Report", July 2024).

Retaining Experienced Professionals: It's more cost-effective to retain existing talent than to constantly recruit and train new employees. Competitive compensation, along with opportunities for growth, can significantly reduce turnover.

Boosting Morale and Productivity: When employees feel fairly compensated, their morale improves, and they are often more engaged and productive. This can help alleviate burnout and create a more positive work environment.

Enhancing Professional Development: Proper compensation can also include provisions for ongoing education, CPA exam support, and professional development opportunities. This not only benefits the individual but also strengthens the overall expertise of your accounting team.

Improving the Image of the Profession: When the accounting profession is seen as a well-compensated and respected career path, it becomes more attractive to a wider pool of future talent, potentially reversing the decline in university enrollments.

Beyond the Salary: A Holistic Approach

While base salary is crucial, "proper compensation" extends beyond that. Consider a holistic approach that includes:

Performance-Based Bonuses: Rewarding strong performance can motivate and incentivize your team.

Comprehensive Benefits: Health insurance, retirement plans, paid time off, and flexible work arrangements are highly valued.

Career Advancement Opportunities: Clear pathways for promotion and skill development show employees that there's a future for them within your organization.

Recognition and Appreciation: Sometimes, acknowledging hard work and dedication can be just as impactful as a monetary bonus.

The Bottom Line: Invest in Your Accountants

The accounting shortage is a complex problem, but addressing compensation is a powerful and actionable step we can take right now. By investing in competitive salaries, comprehensive benefits, and a culture that values its accounting professionals, we can not only alleviate the current talent crunch but also build a stronger, more sustainable future for the profession as a whole.

It's time to recognize that our accountants are not just numbers people; they are the bedrock of financial stability and business success. Let's compensate them accordingly.