by Masato Takahashi, Market Manager for Ledgent Finance & Accounting –

The accounting profession is facing a seismic shift. Two major forces—a skilled worker shortage and the rise of artificial intelligence (AI)—are colliding, creating unprecedented challenges for employers. If you’re still hiring the way you did five years ago, it’s time to rethink your strategy. 

The Perfect Storm: Retirement Meets Declining Enrollment 

Let’s start with the numbers. Seventy-five percent of all CPAs are expected to retire within the next 15 years. That’s not a typo. At the same time, graduates who earned a bachelor’s or master’s degree in accounting fell 6.6% in the 2023-24 academic year, according to the American Institute of Certified Public Accountants (AICPA).  

While there was a growing number of high school students pursuing accounting degrees in the 2024-25 school year, the arduous path to becoming a CPA is still discouraging many young professionals. 

Why? Because the process is daunting. Becoming a CPA requires years of study, exams, and experience. The traditional 150-hour requirement and the Uniform CPA Examination are barriers to choosing the accounting profession. In a 2023 study, current accounting professionals repeatedly remarked that the 150-hour requirement is anticompetitive relative to other business disciplines. For many graduates, the payoff doesn’t feel worth the effort—especially when other career paths offer faster growth and better work-life balance. 

Another factor discouraging new entrants is compensation. Starting pay for Accounting Associates or Staff Accountants in the U.S. averages from $50,000 to $60,000, which is significantly lower than entry-level roles in IT or finance, which often start at $70,000 or more. 

AI Is Changing the Game 

Historically, new graduates started out in roles that had them performing manual tasks like data entry, invoice processing, and reconciliations. Then, after they put in their time, they moved into analysis and advisory roles. These entry-level positions were the foundation for building expertise. Today, AI handles much of that work. 

Automation tools can process invoices, reconcile accounts, and even generate financial reports in seconds. Larger organizations are eliminating those entry-level roles entirely. In some large organizations, accounts payable teams that once had 10 to 15 people are now reduced to one to two thanks to automation. In many cases, these roles have been offshored to countries like India, the Philippines, or Costa Rica, leaving only a handful of local positions. 

Some smaller firms still need these entry-level roles, but that gap is closing fast. So, how do we develop senior accountants when the stepping stones are disappearing? The truth is, no one has a clear answer yet. 

The Ripple Effect on Career Progression 

This shift creates a paradox: 

• Fewer entry-level jobs mean fewer opportunities for graduates to gain experience. 
• Fewer graduates mean fewer future senior accountants. 

Finance roles are also feeling the squeeze. FP&A analysts who once spent hours importing ERP data into Excel for trend analysis and forecasting now see much of that work automated. As a result, teams that used to have two to five analysts may now operate with just one or two. 

If we don’t address this now, the talent pipeline will dry up—and the impact will be felt across every industry. 

What Can Employers Do Now? 

While the industry searches for long-term solutions, here are strategies you can implement today: 

1. Rethink Credentials 

Stop fixating on CPAs and accounting degrees. There simply aren’t enough candidates. Instead, train people who want to be accountants, even if they don’t fit the traditional mold. Apprenticeship programs like one being piloted by Seton Hall University and Withum, on-the-job training, and mentorship can bridge the gap. Consider dropping strict degree requirements if candidates can demonstrate the skills needed to succeed. 

This flexibility should also include hiring candidates who may seem ‘overqualified.’ In a market where entry-level talent is scarce, experience should be seen as an asset, not a liability.  

2. Prioritize Soft Skills 

Technical knowledge matters, but adaptability, communication, and problem-solving are more critical than ever. In a world where technology evolves daily, the ability to learn and pivot is a superpower. 

3. Embrace Tech-Savvy Talent 

Accounting is merging with IT. Familiarity with cloud-based ERP systems like NetSuite is now essential. Candidates with traditional desktop experience may struggle to compete. Look for people who understand automation tools, data analytics, and AI-driven platforms. 

In a tech-driven world, communication and interpersonal skills aren’t just relevant—they’re critical. Tools like TalentSet can help hiring managers assess these non-technical strengths, such as whether a candidate is a natural learner or excels at collaboration. 

4. Challenge Hiring Biases 

Job stability is often overvalued. In reality, adaptability gained from diverse roles can be an asset. If someone wants to work, let them work—don’t penalize them for layoffs beyond their control. The stigma around short tenures needs to end. 

5. Think Outside the Box 

Everything is changing. If you keep hiring the same way you always have, you’ll fall behind. Look for candidates with curiosity, resilience, and a willingness to learn. Consider research-backed profiles that predict success beyond degrees and tenure. The future belongs to organizations that embrace flexibility and innovation. 

The Bigger Picture: Accounting Meets AI 

This isn’t just about filling jobs—it’s about redefining what accounting looks like in an AI-driven world. Tomorrow’s accountants will need a hybrid skill set: 

• Financial expertise 
• Technology fluency 
• Strategic thinking 

Employers who recognize this shift and invest in training will have a competitive edge. 

The accounting talent crisis isn’t going away,  it’s  an opportunity—a chance to build a workforce that’s more adaptable, tech-savvy, and future-ready. The question is: Will you keep doing what you’ve always done, or will you think outside the box? 

To discuss taking your accounting hiring strategy to the next level, reach out to Ledgent Finance & Accounting today.