Valuing Accounting Professionals: Progress to Report during 2025!

About this time last year, I posted the article Valuing Accounting Professionals: A Call for Appreciation. In it, I highlighted the fact that the business world faces a shortage of talented accounting professionals, attempted to explain why this shortage exists, and provided evidence to support this fact. But more importantly, I pointed out how significant this shortage is for everyone who either directly or indirectly relies on accurate and timely financial information. Finally, I shared what I believe we can to do improve the situation.

Spoiler alert: the best and easiest thing we can do is begin to better appreciate the role that accounting professionals play across all the various facets of our lives, and then begin to act based on this appreciation.

One year later, I am happy to report that I have seen tangible progress! I am not going to go so far as to suggest that my gentle prodding had anything to do with it, but nonetheless, I am very happy to see progress. ;)

There are two key areas where I have seen progress: (1) in perceptions relating to how AI will impact the accounting profession, and (2) revised requirements for attaining the CPA (Certified Public Accountant) credential to address the shortage of individuals choosing the accounting career path. Let's review each of these in more detail.

AI as a Tool for Accountants

The supercomputer NOT resulting in the need for less accounting professionals

As I pointed out in last year's article, the standard expectation was that AI was going to eliminate the majority of white-collar jobs, including within the accounting profession. Thankfully, people are waking up to the realization that AI is primarily a new tool that will be powerfully leveraged by accountants to increase their efficiency, add greater value, and contribute more to their organizations or clients.

While there are still some out there saying that "most jobs will be eliminated" due to AI, these (perhaps not so) coincidentally seem to be those who have the most personally and/or professionally invested in the success of AI. I believe that most people believe that AI is a new technology, similar to prior new technologies, that have led to the creation of new jobs, opportunities, and improvements within existing professions.

When computerized General Ledger systems were introduced, did we suddenly need less accountants? When spreadsheets began to be used to automate the generation of financial results and KPIs (Key Peformance Indicators), did we suddenly need less accountants? The answer of course is "No".

In the same manner, accountants will embrace AI as a tool. My projection is that AI will actually improve the profession as it eliminates some of the routine and mundane tasks while allowing accountants to focus more on applying their human experiences to perform critical analysis, apply judgment, and improve decision-making in order to drive more value for their organizations.

While it is true that some of the entry level positions may be negatively impacted by the prevalence of AI, colleges and universities are already proactively addressing this scenario by altering their curriculums to focus more on critical thinking and analysis to ensure that new accountants enter the workforce prepared for the additional expectations that will be placed upon them. Therefore, instead of curriculums placing a great emphasis on basic facts and formulas as many of us "old timers" had to do, like memorizing kiddie tax income reporting rules or being required to accurately write an entire qualified audit report from memory, they are focused more on applying critical reasoning and the application of accounting concepts to provide improved clarity and guidance.

CPA Exam Requirements

I am certainly not one to believe that "CPA" after your name is required to consider yourself an accounting professional - for there are a wide variety of paths outside of public accounting that allow one to fully leverage an accounting degree. But it is a leading indicator of how many people are choosing accounting as a career path, so it is worth investigation.

Before we get into the minimum requirements to take the CPA exam, I would first like to point out that the AICPA has made significant changes to the format of the CPA exam that were phased in during 2024. These changes were made to better reflect the skill set and requirements needed for accounting professionals to succeed in today's environment. For more information on these changes, a good overview can be found at the CPA Evolution website, a site offered by the NASBA and AICPA.

Regarding the minimum requirements for taking the CPA exam, I am very happy to report that the requirements in order to take the CPA exam are being relaxed.

Prior to 2025, all states required a minimum of 150 hours of college credit and 1 year of accounting-related work experience.

The AICPA has modified the suggested minimums and what we are now seeing is that some states are changing the requirements which will directly provide more individuals with the opportunity to take the CPA exam. Specifically, the most common change is to reduce the number of college credit hours to 120 (or a bachelor's degree equivalent) and then increase the number of accounting-related work experience from 1 year to 2 years. For example, the state of Iowa has adopted this new option effective July 1, 2026, and many other states are also in the process of adopting this change.

While this change may not sound like a big deal, it is a big deal. Many individuals simply cannot afford (or otherwise fit into their plans) an additional year of education just to begin their profession and have an opportunity to achieve one of their industries top credentials. Changing one year from a year of having to pay tuition to a year of earning an income and gaining experience is a HUGE change. For this, I am very thankful!

Summary

While I don't have any empirical data to share showing that there has been a substantial improvement in everyone's appreciation for accounting professionals in the past 12 months, I believe the changes highlighted above demonstrate that progress has indeed been made during 2025. And I am optimistic that 2026 will yield even more progress!