CHAIR’S COLUMN

New initiatives focus on filling our pipeline — and strengthening our profession as a result

BY HERBERT J. GEARY III, CPA, CGMA / PARTNER, UHY LLP

First, the bad news: Our profession’s pipeline is a problem — a potentially huge problem. The AICPA’s 2021 Trends Report found that on a national scale, fewer students are studying accounting in college, and only 30 to 40% of those who do actually plan to pursue a CPA designation — something that 60% of accounting graduates did just a few years ago. That means fewer accounting professionals for you to hire. “Total hiring of new accounting graduates for accounting and finance functions by U.S. CPA firms in 2020 decreased by 10% from 2018 and was down to 27,751 from a high of 43,252 just six years earlier,” the Journal of Accountancy reports (https://bit.ly/ TopFirmIssues). Maryland is feeling the pain as well. The number of new Maryland CPAs who have earned their designations this year is 392 — that’s down from 634 just five years earlier. Most leaders hear these numbers and rightfully worry about their ability to recruit and retain new employees. Studies show that staffing and talent are among the most pressing issues facing CPA firms of all sizes.

But concerns about our profession’s shrinking pipeline extend well beyond recruitment and retention. In a recent Washington Post article (https://bit. ly/CPAshortage), Bloomberg reporter Adrian Wooldridge studies the causes of our pipeline issues and reaches one inescapable conclusion: A dearth of CPAs is a threat to capitalism itself. “The obvious result of the talent shortage is an erosion in the quality of audits,” Wooldridge writes. “Public companies are finding it harder to get accountants to audit their books and, when they do find them, must often work them harder. Important checks are skipped, and errors go unnoticed. If companies are late filing, then they risk running afoul of the SEC; if they include errors, then they risk fines and adverse market reaction. Even small errors can lead to a plunge in stock prices. “The chances that U.S. regulators will catch errors, or worse, are arguably also being reduced by the shortage of accountants,” the article continues. “The SEC faces an attrition rate of more than 6%, with a growing proportion of the work done by temps. Poorer oversight increases the likelihood of another Enron out there: a big company that is playing fast and loose with its finances and will eventually collapse, bringing economic havoc in its wake.” So yes, we have some issues to overcome. That brings me to the good news: Some really smart and talented people are working on some creative solutions. For years, the AICPA has spent considerable time, talent, and resources on a number of programs designed to address the pipeline issue. Initiatives like CPA Evolution, “Start Here, Go Places,” and “This Way to CPA” have joined the list of AICPA programs, scholarships, diversity / equity / inclusion efforts, and committees that are focused on bringing more talented people into the profession. In addition, the Center for Audit Quality has launched an initiative called Accounting+, a national marketing campaign designed to strengthen the

“Our profession will thrive going forward through purposeful, transparent collaboration that recognizes that a rising tide will raise all boats.”

accounting and finance pipeline. What sets this initiative apart from others is, in a word, money. The CAQ and its partners are planning to invest $50 million in the program over the next two years. Accounting+ is also unique in that it is aiming to increase the profession’s diversity at the same time it fills our pipeline. During a recent presentation to the MACPA Foundation’s Board of Directors, CAQ Vice President of Operations and Talent Initiatives Liz Barentzen said the initiative is focused particularly on reaching Black and Latinx students, more than 80 percent of whom are open to the idea of pursuing accounting as a career but may lack interest or passion in the work itself. “This campaign is about shifting perceptions and providing resources that can explain what accounting is … and what it isn’t,” Barentzen told us.

You can learn more by visiting JoinAccountingPlus.com or watching this video at vimeo.com/747110757. The MACPA Foundation is keenly interested in these projects and lending its support where appropriate, because the success of these initiatives are victories for our profession. They speak to what I believe are two of the most critical tasks facing our profession: creating a more diverse and inclusive profession, and recruiting and training our next generation of leaders.

MACPA CEO Rebekah Brown puts it this way: “These issues go far beyond the reach of any one firm or corporation, and beyond any association. Our profession will thrive going forward through purposeful, transparent collaboration that recognizes that a rising tide will raise all boats. We are a critical piece of the infrastructure that supports our economy, and our world. Having the talent to serve and maintain that infrastructure is essential.”

The MACPA Foundation’s initiatives are focused not only on maintaining but strengthening that infrastructure in a number of ways, including: • Providing learning opportunities and scholarships for students and young professionals and resources for the educators who teach them. • Advancing the diversity, equity and inclusion of the profession to ensure all voices are heard and respected. • Facilitating mentorship connections to increase growth, success, and engagement in the profession. Our profession, and perhaps our economy itself, depend on these efforts. I hope you’ll take a moment to visit MACPA.org/ Foundation and learn more about the MACPA Foundation’s important work — and that you’ll consider joining that effort by contributing time or money to the cause. More than ever, we need your support to help ensure the vitality of the CPA profession in Maryland and beyond for years to come.