Denise LeDuc Froemming , CPA , CAE , MBA President & CEO | CalCPA

There ’ s been a lot of movement lately on the “ P ” word related to the future of accounting — pipeline — and we can expect further movement this month .

Along with the National Pipeline Advisory Group releasing its final recommendations to address the accounting talent shortage ( accountingpipeline . org / npag-report ), the California Board of Accountancy also has advanced alternative paths to licensure to address the time and cost constraints many candidates face when working toward licensure . You can read more about those proposals in our August issue ’ s Capitol Beat column .

Proposals from both groups are scheduled for discussion later this month as a roundtable of stakeholders from across the profession will review NPAG ’ s suggestions and the CBA will further discuss it ’ s recommendations at its board meeting .

If you ’ ve been around the profession for any length of time , you ’ ve heard or read about the background and reasoning for these movements . On the one hand , employment of accountants and auditors is projected to grow 4 percent from 2022 to 2032 , about as fast as the average for all occupations , according to the U . S . Bureau of Labor Statistics , with an average of 126,500 openings for accountants and auditors projected each year between 2022-32 .

Yet , there are fewer students pursuing accounting degrees . Accounting degree completions have fallen steadily since 2017- 18 from 75,153 to 62,318 in 2021 – 22 , according to the Integrated

Postsecondary Education Data System . And of those 62 , 318 , less than half sat for the CPA Exam .

Answering the question of “ why ” and working collaboratively to develop solutions has been challenging as there are multifaceted issues involved — from the cost and time of education to making the educational experience more engaging to expanding access to the profession to under-represented groups .

And at CalCPA , we know this isn ’ t a challenge that “ others ” need to address . We take seriously our role and have thrown ourselves into this opportunity . Among our strategic priorities you ’ ll find shifting the identity of the profession and transform the career experience . Through various programs and partnerships at all levels of education and career , we aim to inspire diverse and talented individuals to become CPAs , showcase the diverse career paths and empower them to stay in the profession .

Our actions also extend to having a seat at the table as discussions happen that will transform the profession , including submitting comment letters to the CBA that outline our feedback and support for advancing proposed options to modernize mobility and alternative paths to licensure .

Where will all this end up ? The clouds are still parting on that one . But there is strength in numbers and will an eye on the future , our investment today will help build the next generation of talented and passionate CPAs who will shape the profession and propel our collective success . www . calcpa . org SEPTEMBER 2024 CALIFORNIA CPA 3