As the Wall Street Journal recently reported, retirements and career changes are exacerbating a national shortage of Certified Public Accountants (CPAs). Those departing the profession could be replaced by new college graduates, but state licensing laws appear to be deterring some young people from pursuing an accounting career.
The Bureau of Labor Statistics projects continued growth in the demand for accountants and auditors due to the “complex tax and regulatory environment,” among other factors. Baby boomer retirements and burnout among younger accountants are constraining the supply of new professionals. A shortage of CPAs threatens to prevent local governments from completing timely audits, as required by some states and the federal government.
Although certification is not required for all accounting activities, a CPA is needed to conduct an external audit or defend a tax return before the IRS. Consequently, state laws affecting the entry of new CPAs are exacerbating the shortage of accountants.
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