By Jason Fox

The gap between the number of new CPAs and accounting professionals entering the workforce and the growing demand for their services is creating challenges for current professionals , the consumers they serve and the ongoing protection of the public interest .

Several factors are intensifying these challenges : demographic and generational shifts , an evolving labor market , tech advancements , and changing perceptions of higher education . In response , accounting organizations and regulatory bodies are developing strategies to attract and retain candidates in the profession .

One key effort involves creating flexible pathways to CPA licensure . The AICPA , NASBA and individual states , including California , are considering alternative licensure paths that would offer more flexibility and better align with the profession ’ s current realities , while maintaining the benefits of a cohesive inter-state licensing system .

While the interconnectedness of state licensure requirements , cross-border practice rules and the profession ’ s need to meet client and consumer needs seamlessly makes change complex , initial concepts and frameworks are beginning to take shape , with potential state actions and changes to the national licensure framework expected later this year .

While the exact nature of these changes is still unknown , it ’ s clear that significant changes are on the horizon .

To ensure California has a voice in the discussions , CalCPA has created the California Pipeline Advocacy Group ( CPAG ) to evaluate potential changes to the CPA licensure framework , provide feedback , assess the impact of proposed changes on California students , candidates , CPAs and consumers , and guide updates to modernize the California CPA licensure framework .

The CPAG includes perspectives from across the profession , with members representing firms of all sizes , academia , various demographics and different career stages . The CBA is also involved as key stakeholders to offer regulatory insights and context . So where do things stand ? The AICPA formed the National Pipeline Advisory Group ( NPAG ) to develop a national strategy to address the decline in accounting graduates and CPA candidates . NPAG created working groups focusing on different career stages to understand why interest in accounting is dropping and develop strategies to attract and retain accounting professionals .

NPAG ’ s report , available at accountingpipeline . org , examines the latest pipeline data , the reasons behind the profession ’ s attrition and potential solutions . The recommendations focus on six key themes : promoting more compelling stories about careers in accounting ; making the college experience more engaging for accounting majors and potential majors ; reducing the time and cost of education ; increasing support for CPA Exam candidates ; expanding access for underrepresented groups ; and transforming employer cultures and business models .

The goal is to phase in these changes gradually , ensuring minimal disruption to the cohesive cross-border practice ecosystem .

NASBA has formed the Professional Licensure Task Force to explore new ideas for CPA licensure and consider updates to the current model . The Task Force sought feedback on a new concept called the Structured Professional Program ( SPP ). This program offers an alternative pathway to CPA licensure by combining education , documented experience and other professional elements to meet the equivalent of the current requirement of 30 additional semester units . It would use a to-be-developed competency rubric to evaluate and assess a candidate ’ s demonstrated understanding of various tasks and skills .

To align the efforts of the two groups , a joint working group from both organizations will explore concepts to create a unified model and strategy for implementing any necessary changes . The group is expected to share more information later this fall .

In California , the CBA has been actively involved in these national discussions . The proposed framework before the CBA aims to make licensure requirements more flexible , particularly in education , to better suit diverse state populations and demographics . It also seeks to modernize the definition of mobility , to allow for more licensing model concepts . For instance , redefining mobility provisions allows for the consideration of pathways to licensure that do not rely solely on 150 units of education .

The framework approach received positive feedback from the CBA and they asked staff to further refine and collect more data and stakeholder feedback as they continue to contemplate . It ’ s important to note that the CBA ’ s work is a first step in adding the California perspective to the national conversation . Interested members can follow the CBA ’ s discussions at its July meeting ( cba . ca . gov ).

Jason Fox is CalCPA ’ s vice president of government relations . You can reach him at jason . fox @ calcpa . org . www . calcpa . org JULY 2024 CALIFORNIA CPA 11