How Many Active CPAs Are in the US?
Uncover the number of active US CPAs, what shapes their population, and their crucial impact on the nation's financial health.
The Certified Public Accountant (CPA) credential signifies high expertise and ethical conduct within the U.S. accounting profession. These professionals maintain the integrity of financial systems, providing essential services from auditing to tax preparation. Understanding active CPA numbers is important as they contribute significantly to economic health and financial transparency, supporting informed decision-making and fostering trust in financial reporting.
Understanding an Active CPA
Becoming a CPA involves a rigorous process beyond simply passing the Uniform CPA Examination. While the exam is a significant hurdle, it is only one component of licensure. Each of the 55 U.S. jurisdictions sets its own specific requirements for licensure, typically including education, examination, and experience. Thus, criteria for an “active” CPA can vary by location.
To maintain an active license, CPAs must participate in Continuing Professional Education (CPE). These requirements ensure professionals remain current with evolving accounting standards, tax laws, and ethical considerations. Most states mandate CPE hours, often 40 annually or 80-120 over a two to three-year cycle. A portion must be dedicated to ethics training. Active CPAs must also regularly renew their licenses, submitting proof of CPE completion and paying renewal fees ($50-$150). State boards of accountancy, often with NASBA and AICPA, oversee these requirements to ensure ongoing professional competence.
Current Numbers and Trends
Approximately 671,855 actively licensed Certified Public Accountants are in the United States. This figure, reported by NASBA (August 29, 2024), comes from the Accountancy Licensee Database (ALD), which aggregates official regulatory information from 52 of the 55 CPA licensing jurisdictions. A small portion of jurisdictions are not included in this aggregated data.
The total number of actively licensed CPAs has grown over the past two decades, from 639,628 in 2003 to the current estimate. However, recent trends indicate a decline in the supply pipeline for new CPAs. Bachelor’s degrees in accounting decreased by 7.8% in 2021–22, and master’s degrees saw a 6.4% reduction during the same period.
Unique candidates taking the CPA Exam declined by 6.8% from 2021 to 2022. This trend reflects a broader reduction in interest, with unique CPA Exam candidates decreasing by 34.2% since a recent high in 2016. Despite these declines, 20,036 individuals passed their final exam section in 2023.
Factors Influencing CPA Numbers
Several factors contribute to changes in the number of active CPAs, primarily impacting the supply of new professionals. A significant element is the educational pathway to licensure, particularly the “150-hour rule.” This rule, adopted by all U.S. jurisdictions by 2015, requires candidates to complete 150 semester hours of college education for CPA licensure, exceeding the typical 120 hours for a bachelor’s degree. This additional requirement, often a fifth year of study, can impose considerable financial burdens and time commitments on prospective candidates. Research suggests this rule has created a barrier to entry, contributing to a 14% overall decline in new CPAs and a 26% reduction among minority candidates. Some states are exploring alternative licensure pathways that might substitute professional experience for academic hours.
Retirements and attrition also affect the overall number of active CPAs, as experienced professionals leave the workforce. This outflow, combined with the shrinking pipeline of new graduates and exam candidates, creates a compounding effect on the total supply. Economic conditions influence career choices, with some students opting for fields offering quicker entry or higher initial salaries.
Technological advancements are another factor. Automation and artificial intelligence (AI) increasingly handle routine tasks like data entry and reconciliation, shifting the role of accountants from transactional processing to more analytical and advisory functions. While this enhances efficiency and accuracy, it also necessitates CPAs acquire new skills in data analytics and technology proficiency. This evolution can influence the types of skills employers seek and the profession’s appeal to new entrants.
Significance of the CPA Workforce
The CPA workforce holds substantial importance for the economic framework of the United States. These licensed professionals are fundamental to maintaining trust and transparency in financial markets and business operations. Their responsibilities span financial reporting, ensuring companies accurately present their financial health to investors, regulators, and the public. CPAs are central to the auditing function, providing independent verification of financial statements that fosters confidence in capital markets. Their expertise in tax compliance is indispensable for individuals and businesses navigating complex federal and state tax regulations, contributing to the efficient functioning of the tax system. Beyond these traditional roles, CPAs serve as business advisors, offering strategic insights that help organizations make informed decisions, manage risks, and achieve their financial objectives. A robust and well-regulated CPA profession supports economic stability and growth by upholding high standards of financial practice across the nation.