.png)
The US accountant shortage is real but easing at the start of the pipeline. Accounting degrees fell 6.6% in 2023-24 and new CPA exam candidates dropped to 28,082 in 2024, while BLS still expects about 115,300 openings a year. Bachelor's completions rose 8.5% in 2024-25, but firms still need offshore help, automation and better retention.
For CPA firms and finance teams, the shortage shows up as unfilled seats, longer busy seasons, and partners spending evenings on review work. This guide sets out what the data actually says, why the gap opened, and the practical options firms are using to close it.
There is no single official count of "missing" accountants, so it helps to look at the pipeline and demand figures that are published:
Put simply, demand has held up while the supply of new graduates and CPA candidates fell for several years. Even with the 2024-25 uptick, it will take time for larger graduating classes to reach senior and manager level, which is where most firms feel the gap.
For decades, CPA licensure in most states required 150 semester hours of education, roughly a bachelor's degree plus a fifth year. That extra year adds tuition and a year of lost earnings, and many students chose other business majors instead.
This is now changing. Most states have adopted or are adopting an additional pathway that lets candidates combine a bachelor's degree with two years of qualifying experience instead of the fifth year of education. New Jersey's version, for example, took effect in February 2026. Rules and effective dates differ by state, so candidates should check with their state board of accountancy.
BLS notes that most projected openings come from the need to replace workers who leave the occupation, including retirees. When experienced partners and managers retire, firms lose review capacity and client relationships that take years to rebuild, and the remaining staff absorb the extra work.
Students often see accounting as repetitive, seasonal and high-pressure, and fields such as technology, finance and consulting compete for the same business students. Common concerns include:
Pay has moved up as firms compete for staff. The median annual wage for accountants and auditors was $83,680 in May 2025, according to BLS. Pay varies widely by credential, location, firm size and specialty, so firms should benchmark against local surveys rather than national averages.
Firm economics matter too. The 2025 PCPS/CPA.com National MAP Survey (fiscal 2024 medians) reported median net fees per professional of $208,128 and a median partner billing rate of $275, which gives some sense of the revenue each additional professional can support.
Pay and incentives:
Benefits and working conditions:
When teams are short-staffed, deadlines slip and review becomes rushed. That raises the risk of errors in financial statements and tax filings, which can damage client and investor confidence and lead to penalties.
Smaller businesses often cannot match the pay and career paths that larger firms and corporations offer. They are left with a few options:
With fewer qualified people available, companies face greater exposure to:
The new experience-based pathways to licensure are the biggest structural change. Other education efforts include:
The profession is also trying to reach students before they choose a major:
Some groups also advocate classifying accounting as a STEM field, which supporters argue would improve its image as a technology-driven career and could help international students.
Workplace culture:
Technology:
Career development:
Offshoring and outsourcing: Offshore support is now common. The 2025 National MAP Survey found that 29% of CPA firms use offshore resources, rising to 74% of firms with $10 million or more in revenue. Of the firms that offshore, 65% use India and 33% use the Philippines. Firms use offshore teams for:
Contract and temporary staffing:
Automation and AI cannot replace professional judgment, but they can reduce the time spent on routine work and let a smaller team handle more clients.
Firms adopting these tools still need review processes, data security controls and staff who understand how the output was produced.
The data points in two directions. Degree completions and CPA candidate numbers fell for several years, which means firms will be short of experienced staff for some time. At the same time, bachelor's completions rose in 2024-25, and new licensure pathways lower the cost of becoming a CPA. Firms should plan for a tight market for experienced staff over the next few years, even if the entry-level pipeline improves.
Factors that will shape the outcome include:
For many firms, outsourcing is the fastest way to add capacity while the domestic pipeline recovers. A good provider gives you trained staff who work inside your review process, so partners keep control of quality and client relationships.
Look for providers that offer:
Madras Accountancy is one such provider: it supports US CPA firms with offshore accounting, tax and audit support teams.
Several factors: a multi-year decline in accounting degrees and new CPA candidates, the cost of the traditional 150-hour education requirement, retirements of experienced accountants, and competition from other fields that offer better work-life balance or starting pay.
Accounting bachelor's and master's degrees fell 6.6% to 55,152 in 2023-24, and 28,082 new candidates entered the CPA exam pipeline in 2024. BLS projects about 115,300 openings for accountants and auditors each year from 2025 to 2035, so demand continues to outpace new supply.
There are early signs. The AICPA's 2026 Trends report shows accounting bachelor's completions up 8.5% in 2024-25, and most states now offer or are adding a bachelor's-plus-experience route to licensure. It will take several years for these changes to reach experienced staff levels.
Firms have raised pay to compete for staff. BLS reports a median annual wage of $83,680 for accountants and auditors in May 2025. Pay varies widely by location, credential and employer.
All organizations that need accounting expertise are affected, but small businesses and smaller firms feel it most because they have fewer resources to compete on pay and career development.
Common strategies include raising pay, offering flexible work, investing in automation, using offshore or outsourced teams, hiring contract staff for peak periods, and improving retention through better culture and career development.
The accountant shortage will not resolve quickly, but firms that combine better retention, technology and well-managed outsourcing are better placed to keep serving clients while the pipeline recovers.
Need more capacity? Madras Accountancy provides offshore accounting, bookkeeping and tax support for U.S. CPA firms. See our accounting and bookkeeping services for CPA firms.
The section 4960 excise tax is 21% of nonprofit pay over $1M. From 2026 it covers all employees. See the medical carve-outs, Form 4720 and a worked example.
The paid family and medical leave tax credit is permanent from 2026. See the 12.5% to 25% rates, the premium option, the 6-month rule and how Form 8994 works.
Opportunity zones become permanent in 2027 under the One Big Beautiful Bill. See the new deferral, rural bonus, and the 2026 handoff.
