Accounting firms, which crunch numbers for a living, are facing their own numbers squeeze as fewer people seek careers in this lucrative field.
In the past two years, more than 300,000 U.S. accountants and auditors have left their jobs, a 17% decline, the Wall Street Journal reports. Besides Baby Boomer retirements, the Journal report said younger accountants between the ages of 25 and 34 and mid-career professionals in the 45-to-54 age range are leaving the profession in high numbers.
Many accountants resign because they believe they are underpaid and have limited opportunities for career advancement, according to a recent report from The Institute of Management Accountants and Robert Half, which surveyed over 1,200 current and former accounting and finance professionals. Seventy- and 80-hour weeks are common at some of the biggest firms ahead of tax and audit deadlines, discouraging people from entering the profession.
The future of accounting jobs is evolving rapidly, and despite AI and other technological challenges, those jobs aren’t disappearing. Accountants are in high demand, especially those who can adapt to new technologies and shifting business needs. According to the Bureau of Labor Statistics, the job outlook for accountants for the period 2023 to 2033 is an increase of 91,400 positions, or 6%, faster than the national average. Accountants’ median pay was $81,680 a year in 2024.
Aiysha Johnson, executive director at the New Jersey Society of CPAs and the first Black woman to lead the state CPA society, is optimistic about the future of the profession.
“According to a study from the Center for Audit Quality, there have been significant improvements in how students view accounting careers,” she said. “There was an 11% increase in undergraduate enrollment in college accounting programs for the 2024 spring semester (National Student Clearinghouse Research Center).”
She added that the Graduate Management Admission Council’s 2024 Application Trends Survey showed that 72% of Master of Accounting programs in the U.S. reported increased levels of applications in 2024, a five-year high.
Johnson said accounting firms are being more aggressive and strategic in attracting prospective accountants.
“Accounting firms are offering competitive salaries and benefits, flexible work arrangements, and opportunities for professional development and career advancement,” she said. “Additionally, firms are focusing on building a positive workplace culture, emphasizing work-life balance, and leveraging technology to improve efficiency and employee experience. Accounting firms are increasingly using employee stock ownership plans (ESOPs) to attract and retain talent. By offering employees a stake in the company’s future, ESOPs provide a powerful incentive to attract and retain talent.”
Like so many sectors in the economy, technology is having a profound impact on accounting and changing an accountant’s role.
“From the personal computer to the cloud to artificial intelligence, technology is enabling CPAs and other finance professionals to remove some of the more administrative or rote tasks that accountants perform, freeing up staff to build relationships and provide better client service,” said Johnson.
“AI is particularly useful in analyzing large datasets and delivering insights in real-time, but AI can be strategically applied to improve operations, client service and decision-making. For accounting firms, AI is not about replacing staff, it’s about enabling better service and smarter growth.”
Johnson said CPA certification is not changing, however, the process of obtaining certification is expanding. “New Jersey and many other states across the country are implementing an additional pathway to licensure.” she said. “For years, the requirement has been 150 hours of education, one year of experience and passage of the CPA exam. Now, in addition to that option, a new option will allow candidates to obtain a bachelor’s degree, two years of experience and passage of the CPA exam.”
Johnson said the NJCPA worked to modify New Jersey’s Accountancy Act to enable CPA candidates to qualify for licensure with this new option. She said the bill was sponsored by Assemblyman Sterley S. Stanley (D-East Brunswick) and has cleared the full Assembly and the Senate Commerce Committee. If it passes the full Senate and the governor signs the bill, Johnson said the new option will be available starting Jan. 1, 2026.
Cybersecurity looms large in the economy, and Johnson sees this as a service opportunity for accounting firms. “Smart companies — including CPA firms — will take proactive measures to protect themselves and their clients’ data,” she said. “Some accounting firms offer cybersecurity as a service to clients. But if a firm does not have cybersecurity professionals on staff, they should work with an experienced cybersecurity firm.”
As the profession evolves, an accountant’s skills will have to evolve with it. “As AI replaces tasks, a CPA’s ‘human’ attributes will become more important,” said Johnson. “Clients want to work with a person, not AI. Some new professionals entering the workforce who endured remote learning during COVID and beyond struggle with interpersonal and communication skills, as well as adapting to a prescribed work schedule.
“Those professionals and their employers will need to address those struggles and work through them. Accounting educators as well as those who are hiring are stressing the importance of soft skills in addition to technical skills, which are becoming increasingly important at entry-level jobs and beyond.”
So, what does the accounting firm of the future look like?
“The accounting firm of the future will be significantly shaped by technology, particularly AI and automation, and private equity involvement, leading to a shift towards more advisory services and strategic guidance,” said Johnson. “The traditional partnership structure will likely evolve into a more corporate model, with a greater emphasis on professional management and accountability.”
