The accounting profession plays a pivotal role in the financial integrity and transparency of businesses and organizations across the United States. Within this field, Certified Public Accountants (CPAs) hold a distinguished position, recognized for their expertise and adherence to rigorous professional standards.
A common inquiry pertains to the number of CPAs practicing in the U.S., a figure that offers insights into the profession’s landscape and its evolution over time.
Current Number of CPAs in the United States
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How many Certified Public Accountants are in the US?
As of August 29, 2024, NASBA reported that there are 671,855 actively licensed CPAs in the United States. This data is sourced from the Accountancy Licensee Database (ALD), which compiles official regulatory information from 52 of the 55 CPA licensing jurisdictions.
It’s important to note that this figure excludes data from Hawaii, New Mexico, and Vermont, suggesting that the actual number of active CPAs may be slightly higher when accounting for these states.
Comparison with Related Professions
To contextualize the prevalence of CPAs within the broader professional landscape, it’s insightful to compare their numbers with those of other licensed professionals. For instance:
- Attorneys: There are approximately 1.3 million active lawyers in the U.S., representing about 0.40% of the population.
- Medical Doctors: The nation has around 1.1 million active physicians, accounting for 0.32% of the population.
- CPAs: With 671,855 active licenses, CPAs make up about 0.20% of the U.S. population.
These comparisons highlight the relative exclusivity and specialized nature of the CPA designation within the professional community.
Trends in CPA Numbers and Accounting Graduates
In recent years, the accounting profession has observed notable trends concerning the influx of new professionals:
Decline in Accounting Graduates: AICPA reported an 8% decrease in accounting graduates, with the number of individuals completing accounting programs falling from previous years.
Decrease in CPA Exam Candidates: Correspondingly, there has been a decline in the number of candidates sitting for the CPA Exam. In the most recent data, 67,355 individuals took the exam, down from 72,271 in the prior year. This downward trend has been ongoing since a peak in 2016, when 102,291 candidates sat for the exam.
These trends raise concerns about the future supply of CPAs, especially considering the increasing demand for accounting expertise in various sectors.
Factors Influencing the Decline
Several factors may contribute to the observed decline in both accounting graduates and CPA candidates:
Educational Requirements: The 150-hour education requirement for CPA licensure, which often necessitates additional coursework beyond a bachelor’s degree, may deter some students due to the extra time and financial investment involved.
Alternative Career Paths: The emergence of diverse career opportunities in finance, technology, and consulting offers accounting graduates alternative paths that may not require CPA certification.
Perceived Exam Difficulty: The CPA Exam is renowned for its rigor, and the prospect of extensive preparation and the possibility of multiple attempts may discourage potential candidates.
Economic Factors: Economic downturns or uncertainties can influence individuals’ decisions to pursue further education or certification, especially when considering the associated costs.
The Importance of CPAs in the Financial Ecosystem
Despite the declining number of new CPAs, the role of CPAs remains integral to the financial health of organizations and the broader economy. CPAs are entrusted with responsibilities that include:
Auditing and Assurance: Providing independent assessments of financial statements to ensure accuracy and compliance with accounting standards.
Tax Planning and Compliance: Assisting individuals and businesses in navigating complex tax regulations and optimizing tax obligations.
Consulting Services: Offering strategic advice on financial planning, risk management, and business development.
Forensic Accounting: Investigating financial discrepancies and fraud, thereby upholding ethical standards and legal compliance.
The expertise and ethical standards upheld by CPAs contribute significantly to public trust in financial reporting and business practices.
Encouraging the Next Generation of CPAs
To address the decline in new CPAs and ensure the profession’s vitality, several strategies can be considered:
Educational Outreach
Promoting the benefits and opportunities associated with the CPA designation to high school and early college students can spark interest in the profession.
Mentorship Programs
Establishing mentorship initiatives that connect aspiring CPAs with experienced professionals can provide guidance and support throughout the certification process.
Flexible Pathways
Exploring alternative pathways to meet the 150-hour requirement, such as integrated bachelor’s and master’s programs or recognition of relevant work experience, may reduce barriers to entry.
Exam Support
Offering resources, study programs, and financial assistance for CPA Exam preparation can alleviate some of the challenges candidates face.
By implementing such strategies, the accounting profession can attract and develop new talent, ensuring that the critical functions performed by CPAs continue to be upheld.
Frequently Asked Questions
How many CPAs are currently licensed in the United States?
As of August 2024, there are 671,855 actively licensed CPAs in the United States, according to the National Association of State Boards of Accountancy (NASBA). This number is based on data from 52 of the 55 CPA licensing jurisdictions, excluding Hawaii, New Mexico, and Vermont.
Has the number of CPAs in the U.S. been increasing or decreasing?
The number of active CPAs has been declining in recent years, partly due to a drop in accounting graduates and fewer candidates taking the CPA Exam. This trend has raised concerns about a potential CPA shortage in the future.
How does the number of CPAs compare to other licensed professionals?
There are approximately 1.3 million active attorneys and 1.1 million medical doctors in the U.S., while CPAs number around 671,855. This means CPAs make up about 0.20% of the U.S. population, making them a highly specialized group of professionals.
What factors are contributing to the decline in new CPAs?
The 150-hour education requirement, the rigorous CPA Exam, and alternative career paths in finance and technology have deterred some students from pursuing CPA licensure. Additionally, the declining number of accounting graduates has reduced the pool of CPA candidates entering the profession.
Bottom Line
The current landscape of the CPA profession in the United States reflects both its esteemed status and the challenges it faces. With 671,855 actively licensed CPAs as of August 2024, the profession remains a cornerstone of financial integrity and trust.
However, the declining number of accounting graduates and CPA candidates signals a need for concerted efforts to attract and support the next generation of CPAs. Through educational initiatives, mentorship, and structural adjustments, the profession can continue to thrive and adapt to the evolving demands of the financial world.
