If you are an accountant or work in an accounting- or finance-related field, you’ve probably heard the term “accountant shortage”. And no surprises, in 2025, the use of the term has not died down; on the contrary, the shortage has ballooned into somewhat of a crisis. Between 2020 and 2022, around 300,000 accountants and auditors’ mass-retired from the industry.
The AICPA describes the “accountant shortage” in US as having transcended into a “pipeline crisis”. According to NASBA, there are 653,408 licensed accountants in the US as of August 28th, 2025, down from its peak of 1.93 million in 2019. As a result, CPA firms are experiencing the direct impact of this shortage of, which is leading to increased workload and burnout, limited or compromised services for clients, low-quality services, and a higher risk of non-compliance due to increased chances of errors and oversight.
So, how are CPA firms supposed to combat this growing crisis? This blog answers this important question while helping CPA firms get a holistic view of the “skills vacuum” in the accounting industry.
What is contributing to the shortage of accountants?
An aging population of accountants
High retirement rates among experienced professionals are the most significant contributor to the US accountant shortage. A high percentage of experienced accountants are nearing retirement age, which may result in a significant gap in expertise and workforce continuity. Some estimates suggest that upwards of 75% of all currently working CPAs may retire in the next 15 years. This continued attrition of experienced CPAs is threatening the expertise and continuity of firms, which may affect the quality of service and operational stability, thus remaining a huge challenge to CPA firms.
Lack of new accountants coming into the market
With many experienced accountants retiring from the profession, far fewer new professionals are entering it. Enrolment in undergraduate accounting programs has steadily decreased over the last decade, even as the need for accounting skills has increased. Fewer students are sitting for the CPA exam, and fewer of them are passing it. Younger generations also want careers that have better work-life balance, offer a variety of different career paths, and have more modern work environments-areas in which the accounting profession has historically lagged. The result is a dramatically narrowed talent pipeline, with CPA firms having fewer qualified candidates to recruit from.
Slow salary growth and potential long-term earnings in today’s market
Another reason young professionals avoid accounting as a career is the imbalance between workload and remuneration. Though accounting has generally been considered one of the secure and well-paid professions, the salary rise at an early stage in this career has not kept pace with that of finance, data analytics, and technology. For instance, the median starting pay for a software engineer was $93,000, compared to about $62,500 for an entry-level accountant in 2023 data.
Entry-level accountants often have to put up with stressful hours during the tax and audit busy seasons, without receiving immediate financial rewards compared to other business careers. The stagnation of wages, coupled with very high levels of stress, makes the profession less attractive to students considering many career options.
Technological automation replaces beginning-level tasks.
In days gone by, when entry-level accountants did much of the manual, often repetitive work, the profession provided a clear, well-structured route to gaining foundational experience. These routine tasks were critical stepping stones that gave new entrants time and expertise to learn how accounting systems, workflows, and applications actually function.
However, as accounting software, AI-driven tools, and automation accelerated, many introductory-level tasks were streamlined or eliminated. While automation offers much greater efficiency, it has consequently reduced the amount of traditional “apprenticeship-style” work available to new graduates. Because of this, students see fewer opportunities to enter the field, or, more likely, worry that the early-career roles they once relied on no longer exist, leading to CPA shortage in US in the field of accountancy.
150-hour credit hour requirement
The 150-hour credit hour requirement began in 1983. This requirement no longer aligns with current expectations for today’s students or with today’s workforce realities. In today’s market, the 150-hour rule has become one of the most significant barriers to entry. Students now must incur an additional year of tuition and living expenses, and face delayed earning potential, at a time when many already struggle with student debt and the overall return on investment of higher education.
Cultural shift in perspective towards the profession of accounting
The general perception of accounting has shifted in the broader culture. Most people view accounting as being inflexible, dull, and terribly stressful. Burnout within the profession is now reasonably well publicized on social media, online forums, and professional groups. This awareness appears to have molded the perceptions of incoming students. Accounting has a tough time competing for young graduates’ attention, especially against more alluring, “contemporary” career alternatives.
Is the trend of accountant shortage in the US going to continue?
All the data points to ‘yes’, and this shortage of accountants is widely expected to persist through at least 2029; some projections put the figure at 7-10 years from now, until roughly 2034 or 2035. The profession would require industry-wide changes in educational requirements and workplace culture, along with compensation structures and total branding aimed at younger generations, to significantly increase the number of accountants. However, undergraduate accounting enrollment was 12% higher in spring 2025 compared to 2024, a gain of 29,312 students, and brought the total to 266,507.
What is the solution for CPA firms amidst this shortage of accountants?
To address the ongoing US accountant shortage, many accounting firms are outsourcing their services. According to the AICPA, about 25% of CPA firms outsource at least part of their accounting or bookkeeping work to outside providers. This trend is growing as firms see the advantages of adding highly trained offshore or third-party professionals to their teams. It enables CPA firms to leverage:
- Access qualified accounting professionals without competing in an oversaturated hiring market
- Reduce the workload and burnout experienced by internal staff
- Expand service offerings and take on more clients
- Improve turnaround times during peak seasons
- Maintain quality and compliance standards even when internal bandwidth is limited
Conclusion
On an individual level, CPA firms face an accountant shortage in US, leading to understaffing, overwork, and burnout. At the industry level, this reflects a broader market trend, signaling a need for change across the accounting industry. As CPA firms progress quarter to quarter and tax year to tax year, it’s easy to get caught up in the immediate pressures of managing workloads and meeting deadlines. However, without addressing systemic causes, firms risk continuing the cycle of burnout and understaffing. By adopting strategic approaches such as outsourcing, firms can build sustainable models that adapt to long-term challenges rather than just survive short-term stress.
