Changes to CPA licensure affecting our online resources and accounting workforce
Changes to the CPA licensure requirements are causing a stir among finance leaders, accounting professors, and CPAs alike. As states roll out alternative pathways to the 150-hour requirement, questions about the uniformity and timing of these decisions have been raised, especially in light of the retirement of longtime AICPA president Barry Melancon, who was adamantly opposed to any relaxation of the rule.
While state society leaders are working to ensure consistent changes, the debate centers on addressing the shortage of financial talent. Some argue that the 150-hour requirement has outlived its purpose and that changes need to be made to improve the confusion surrounding the CPA licensure process and the profession's pipeline. However, there is disagreement on how to develop accounting curriculums, the value of the CPA, and more.
Changing Generations and Big Four's Impact
The changes to the 150-hour requirement may reduce the time it takes to become a CPA, but opinions among accounting leaders vary. Dr. Tim Naddy, Vice President of Finance at the Savannah Bananas and a professor of accounting at the Savannah College of Art and Design, sees this as a generational problem.
"The industry is heavily disconnected from the incoming generation," Naddy said. "We need to be on campus having real conversations with students, not the usual route of showing up to Beta Alpha Psi meetings or homecoming.”
Andrew Hunzicker, CPA and founder of the DOPE program, agrees that it's a generational issue but argues that the CPA is still the premiere financial credential. He contends that because the Baby Boomers are aging out, talent shortages are an "insolvable problem" across industries, not just accounting. Removing the 150-hour requirement, in his view, lowers standards.
Naddy also highlights that removing the 150-hour requirement may inadvertently create a system where firms can hire bachelor's graduates, get two busy seasons out of them, and then see them leave for private industry. He argues that CPAs should get back to hiring individuals with CPA licenses to keep them longer.
Addressing Curriculum and Student Concerns
Dr. Jack Castonguay, an associate professor of accounting at Hofstra University, notes a growing concern among finance leaders about the impact the change could have on the passing rate of the CPA exam. Some argue that removing the 150-hour requirement might result in fewer students passing the exam.
There is also disagreement about the order in which accounting should be taught. While Castonguay favors the traditional model of teaching financial accounting before cost accounting, Naddy believes that cost accounting should come first. By teaching cost accounting first, students would better understand the mechanics of running a business, according to Naddy.
Overall, the debate revolves around balancing the profession's traditional rigor with facing current industry challenges, including workforce shortages, generational concerns, curriculum relevance, and consistency in licensing decisions. As the accounting industry navigates these issues, juristictions will need to strike a delicate balance between maintaining high standards and fostering a diverse and skilled workforce.
- The varying opinions among accounting leaders suggest a need for analysis regarding the impacts of changing the 150-hour CPA requirement, especially in relation to the retirement of AICPA president Barry Melancon.
- Dr. Tim Naddy, a Savannah College of Art and Design professor, believes the industry's disconnection from the incoming generation necessitates changes in approach, such as conducting more on-campus discussions with students.
- Andrew Hunzicker, a CPA and founder of the DOPE program, maintains that the CPA remains the premier financial credential, despite the approaching retirement of the Baby Boomer generation and the resulting talent shortages across industries.
- In terms of finance careers, Naddy argues that removing the 150-hour requirement might lead to a system where firms hire bachelor's graduates for short periods before losing them to private industry, emphasizing the importance of hiring CPAs for longevity.
- Dr. Jack Castonguay, an associate professor at Hofstra University, raises concerns about the potential effects on the CPA exam passing rate, should the 150-hour requirement be removed.
- The debate around the CPA licensure process includes disagreement on the sequence of accounting curriculum, with Naddy advocating for teaching cost accounting before financial accounting, as it provides students a deeper understanding of business operations.
