How Many Certified Public Accountants (CPAs) Are There?
Explore the current landscape of Certified Public Accountants (CPAs), including their total numbers and the dynamics that define their presence in the financial world.
A Certified Public Accountant (CPA) holds a professional license demonstrating expertise in accounting principles and practices. This designation signifies a high level of knowledge and adherence to ethical standards, fostering public trust in financial reporting and advisory services. The CPA credential is a mark of distinction, ensuring competence across various financial disciplines. This article explores the current number of CPAs in the United States, the dynamics influencing this population, and the diverse sectors where these professionals contribute their skills.
Current Number of CPAs
As of August 2024, there are 671,855 actively licensed Certified Public Accountants in the United States. This figure is compiled by the National Association of State Boards of Accountancy (NASBA) through its Accountancy Licensee Database (ALD). The database aggregates official regulatory data from 52 of the 55 CPA licensing jurisdictions, though it excludes Hawaii, New Mexico, and Vermont.
The total can fluctuate due to ongoing new certifications and retirements. While the American Institute of Certified Public Accountants (AICPA) reported over 688,000 active CPAs as of December 2022, the NASBA data provides a more recent snapshot of actively licensed professionals. The data collection relies on information provided by state boards of accountancy, which maintain records of all licensed CPAs in their respective jurisdictions.
Factors Influencing the CPA Population
The population of CPAs is shaped by factors related to the pipeline of new professionals entering the field and the departure of experienced ones. A primary element is the educational requirement for licensure, often known as the 150-hour rule, which mandates 150 semester hours of college coursework, typically equivalent to a bachelor’s degree plus an additional year of study. While this rule aims to ensure comprehensive knowledge, some suggest it presents a barrier to entry for prospective candidates. However, studies indicate that a lack of interest in accounting and the allure of higher starting salaries in other majors are often more influential deterrents than the 150-hour requirement itself.
The CPA Examination also plays a role, with overall pass rates typically ranging between 45% and 55%. The number of individuals taking the CPA Exam has seen a decline, reaching a 17-year low in 2022 with just over 67,000 test takers. This reduction in candidates directly impacts the number of new licensees entering the profession. A substantial portion of the existing CPA workforce is nearing retirement age, with some estimates suggesting that roughly 75% of AICPA members are at this stage.
The accounting profession competes with other fields for talent. Factors like perceived lower compensation compared to other business majors and the perception of accounting as a less dynamic career path can influence student choices. Some states are exploring or implementing alternative pathways to CPA licensure, which may include a bachelor’s degree combined with additional years of professional experience, to broaden access to the profession. These alternative routes are generally being introduced as additional options rather than replacing the established 150-hour pathway.
Where CPAs Work
Certified Public Accountants are employed across a wide array of sectors, reflecting the diverse applications of accounting expertise. Many CPAs work in public accounting firms, which offer services such as auditing, tax preparation, and advisory consulting to various clients. These roles often involve ensuring financial statements comply with generally accepted accounting principles (GAAP) and tax laws. Public accounting provides exposure to numerous industries and business structures.
Many CPAs also work in corporate accounting, holding positions within private companies across nearly every industry. In these roles, they might serve as financial controllers, internal auditors, or financial analysts. Corporate CPAs are responsible for managing internal financial operations, preparing company financial reports, and contributing to strategic financial planning.
CPAs can be found in government agencies at federal, state, and local levels, performing auditing, financial management, and compliance functions. This includes roles within the Internal Revenue Service (IRS), state audit offices, or local government finance departments. Some CPAs also pursue careers in academia, teaching accounting principles and preparing the next generation of accounting professionals at colleges and universities. The versatility of the CPA designation allows these professionals to adapt their skills to various organizational needs and economic environments.