Much has been written about the impending accountant shortage lately, but exciting changes are happening — both at a policy level and within the profession itself right here in Utah — that can help change that narrative. Recently, state legislators passed legislation to create an alternative pathway for people to earn the certified public accountant license beyond the so-called 150-hour rule.
The 150-hour rule requires students to take an extra 30 hours of academic credits, work under a CPA for one year and pass the CPA exam. This requirement raises the financial costs of becoming a CPA and contributes to the accounting shortage affecting Utah businesses and governments.
Now, Utahns interested in becoming a CPA can forego the extra cost of school beyond their bachelor’s degree and go straight into the workforce, spending two years working under a CPA and passing the exam to earn their license. This removes a key financial barrier to becoming a CPA and overall, helps Utahns and businesses in Utah to thrive.
This alternative pathway sustains quality by having people engage more quickly with technology that’s shaping the profession’s future. It’s a win-win and Utah deserves credit for its leadership as it is poised to become just the 3rd state to enact this reform.
Why the urgency? Talent shortages are not an issue for Big 4 accounting firms, but they are affecting our economy and capital markets. In the first half of last year, nearly 600 U.S.-listed companies reported material weaknesses related to personnel, and S&P Global analysts warned that many municipalities could have credit ratings downgraded or withdrawn because of delayed financial disclosures. These are issues that affect all of us.
CPAs don’t just help public and private companies, governments, investors, and taxpayers understand an organization’s financial situation; a CPA’s skills have helped propel leaders in business throughout our history. From industry legends like John D. Rockefeller to modern-day leaders like Nike co-founder Phil Knight, accounting has provided a foundation of strategic insight and has been a springboard for iconic careers that have propelled industries forward.
Creating alternatives to the 150-hour rule is not a silver bullet. We must continue to re-attract people to the profession by leaning into technology, innovating the work environment to fit the future of work and creating new opportunities for a rewarding career.
Redefining CPA work
The narrative that CPAs do “boring” work is outdated. Accountants today are using cutting-edge tools like AI, data analytics and automation to fundamentally transform how we operate. For example, at KPMG, our engagement teams now use KPMG Clara, which is a secure, AI-enabled audit platform that brings together collaboration, workflow, automation, and analytics in one place. Additionally, tools like Microsoft’s CoPilot allow us to reduce manual work and focus on deeper, value-added tasks.
High demand, high reward
Another tired narrative is that public accounting doesn’t offer enough career opportunities or compensation to attract new talent. This couldn’t be further from the truth: salaries for CPA candidates are rising and demand for skilled professionals is higher than ever. We also know that recent graduates increasingly value flexible work arrangements, career advancement and purpose-driven work — and public accounting delivers on all those fronts.
In Utah, we’re seeing top-tier candidates choose CPA pathways not only for the financial rewards but for the strategic impact they can make on businesses large and small. Given the state’s booming economy driven by industries like technology, healthcare and finance, top talent entering the industry in Utah has an unparalleled opportunity to make an immediate impact.
Unlocking next-gen CPAs in Utah
Utah’s new pathway removes a critical barrier for top talent to earn their CPA; and through this reform and other actions taken by those in our profession, we can attract and develop the next wave of visionary leaders into the profession to grow our economy.
Our profession has always thrived when adapting to new trends while preserving the integrity and trust that CPAs are known for. By investing in talent, embracing technology, and offering flexible pathways to the profession, we can ensure the future is bright for CPAs everywhere.
Let’s continue to take pride in what we do and seize the opportunity to shape the future.
