Despite the increasing demand for accounting services, prior research indicates that the number of qualified professionals is not keeping pace at a national level (Comunale et al. 2023; Dresnack 2022). The accounting community – including practitioners and educators – has recognized the urgency of the skilled labor shortage over the last several years and has been developing plans to address the crisis. While this shortage infiltrates accounting firms of all varieties, its impact extends well beyond the accounting profession.  The accountant shortage has been linked to an increase in financial reporting delays, errors, and compliance issues (Constantz 2024), and these issues can negatively affect investor trust and market stability as well as result in regulatory and/or legal repercussions. 

This article contributes to the ongoing discussion of the accounting talent shortage by examining its impact on the West Michigan community and showcasing the efforts of Grand Valley State University’s (GVSU) School of Accounting at Seidman College to attract more students to the field. We highlight experiential programs developed by GVSU in partnership with the West Michigan business community, illustrating the diverse opportunities an accounting career offers. While these strategies may not fully address the labor shortage, they represent a significant step in shifting perceptions of accounting as a major and career, ultimately strengthening the talent pipeline.

The shortage of accountants has been attributed to several interrelated factors, including an aging workforce, a decline in accounting graduates, and a growing demand for accounting services that have evolved to require new skillsets. While several factors are contributing to the existing accounting labor shortage, this article will focus on the decline in accounting graduates, also known as the talent pipeline.

In its 2023 Trends Report, the American Institute of CPAs (AICPA) reported that accounting degree completions in the U.S. have been on a downward trend since the 2015-16 academic year, down more than 18% over a six-year period at the end of the 2021-22 academic year (Report 2023). 

We present data from Grand Valley State University, one of the largest universities in West Michigan, to illustrate a downward trend consistent with national-level reporting – a 25% decrease in accounting majors over the past decade (Table 1).

In response to the nationwide decline in the incoming accounting labor force, the AICPA developed and published its Pipeline Acceleration Plan (2024).  The plan acknowledges five main themes contributing to the accounting talent shortage: (1) low awareness of opportunities in the profession, (2) outdated perceptions of the profession, (3) education and certification requirements to become a CPA, (4) compensation and workload in the profession, and (5) lack of diversity, equity and inclusion (representation) in the profession, along with a number of initiatives aimed at addressing each of the issues.  This article will concentrate on the themes of awareness, perception, and representation.

In its July 2023 report, the Center for Audit Quality (CAQ) shared findings from research conducted to better understand the factors that are leading to the decline in accounting graduates (Quality 2023) (Figure 1).  Of the 939 students polled, 57% believed they did not have the skillset to become an accountant.  Sixty percent indicated they were not good enough at math to be an accountant, 59% said there was not much variety in available career paths, and 53% suggested that the accounting major was too niche or specialized.  These responses suggest that students lack awareness of the skills required to become an accountant and the numerous career paths available to those with an accounting degree.  It’s not just math!

Today’s employers are looking for accounting candidates who not only excel in technical accounting but also have skills in areas like data analytics, information technology, and management (Ahadiat and Martin 2015).  Examples of management skills include, but are not limited to, communication, decision-making, interpersonal, leadership, problem-solving, and strategic thinking skills. Despite a popular belief, the skillset required to be successful as a modern-day accountant is far broader and more extensive than mathematics. The evolving skillset is attributable to the number of career paths in accounting and the new roles that accountants are serving in businesses.  Accountants in public practice have traditionally provided tax and audit services, but they also offer advisory and other specialized services such as forensic accounting or an expert focusing on sustainability accounting.  In private practice (or industry), accountants serve in roles ranging from bookkeeping to strategic advisors to chief financial officers. Accountants can also specialize in areas such as information technology or government.

In the CAQ survey noted above, 46% of the 939 students polled listed a lack of representation in the profession (“Don’t see people like me in the profession”) as a reason for not choosing to major in accounting. Unfortunately, data at both the national and West Michigan levels supports a lack of diversity in the accounting profession.

The AICPA’s 2023 Trends Report indicates no meaningful change in the racial/ethnic makeup of accounting graduates from the 2012-13 academic year to the 2021-22 academic year (Figure 2).  While the percentage of graduates identified as White (ranging from 56.8% to 58.6%) is in line with national demographics according to the 2020 U.S. Census (58.4%), the races/ethnicities of Black, Hispanic and Native American are underrepresented in accounting graduates.  The 2020 U.S. Census reported that 13.7% of Americans are Black or African American (vs. 6.7% to 8.1% of accounting graduates), 19.5% are Hispanic or Latino (vs. 9.2% to 14.3%), and 1.3% are Native American or Alaska Native (vs.0.2 to 0.4%) (Bureau 2023).

We present data from GVSU to represent West Michigan and illustrate a modest increase in the diversity of our learning population over the past decade (Figure 3).  The percentage of White students enrolled in accounting (77.3% in Fall 2024) is consistent with the 2020 Census for the State of Michigan (78.7%).  Black and African Americans are underrepresented, as 5.0% of accounting majors are Black while comprising 14.1% of the Michigan population.  There is a higher proportion of Asian and Hispanic students enrolled in accounting at GVSU (4.5% and 10.1%, respectively) than the Michigan population (3.6% and 6.0%, respectively).

In the Classroom:

Historically, higher education in accounting has adopted traditional learning environments such as lectures and generic textbook exercises (Gittings et al. 2020). However, GVSU has recently pivoted towards an experiential learning approach in the classroom to allow students to evolve with the accounting profession, emphasizing the integration of industry problems into foundational accounting theory. GVSU’s School of Accounting at the Seidman College of Business has also begun to incorporate feedback from West Michigan employers, who are now placing a larger emphasis on skills such as critical thinking, business acumen, communication, and professionalism in the workplace.

To reshape perceptions of accounting and address common misconceptions, GVSU’s School of Accounting has redesigned its two foundational courses—Principles of Financial Accounting and Principles of Managerial Accounting—required for all business students. These courses are structured to highlight the integral role of accounting insights across various business functions and their relevance to all areas of business. Real-world applications, such as examples from West Michigan businesses or projects where students develop financial reports for hypothetical companies, enhance the learning experience. The revised course design demonstrates that accounting is much more than math, helping students gain a deeper understanding of the field and encouraging them to consider it as a potential career path.

High School Outreach:

Along with the changes in the classroom, GVSU’s School of Accounting created the Accounting Careers + Education Discovery (ACED) program. ACED targets high school students from economically disadvantaged districts in Michigan. Our camp encourages students to develop their natural problem-solving and critical thinking skills while guiding them toward promising careers in accounting and other professional services. ACED’s mission is to help students perceive accounting as a creative and viable career option, bringing fresh, diverse perspectives to the profession.

The Center for Audit Quality’s research demonstrated that 66% of accounting majors report choosing the major before entering college, which indicates that supporting students before they reach college is key (Quality 2023). Expanding access for diverse student groups to experience accounting before college will not only enhance diversity within the accounting talent pipeline but also boost the overall number of accounting majors.

GVSU’s School of Accounting began hosting its annual three-day, immersive experience for high school students in June 2023 – the ACED Summer Camp.  Recognizing that the first step to opening the door to accounting is to inspire high school students to pursue a college education, ACED Summer Camp participants gain a collegiate experience by staying in the GVSU student dorms, eating in the dining halls, and touring various campus facilities. Once students are comfortable imagining themselves in college, we strive to demonstrate what they can achieve with a college degree. In 2024, we accomplished this objective by hiring a GVSU alumni-owned food truck to provide not only a meal for our campers, but also an interactive learning experience. Students tangibly witnessed the entrepreneurial spirit by engaging with the business owner, and then were asked to consider fundamental financial and managerial accounting concepts. Students revisited these concepts later in the camp and added complexity by making their own camp t-shirt with a vinyl heat press. They physically held and controlled various input resources and were asked to consider the method for tracking the costs of the manufacturing process, as well as the appropriate selling price to achieve a desired profit. These exercises aim to provide high-impact experiential learning opportunities for the students and demonstrate how useful accounting is for business owners and external parties.

In addition to the hands-on accounting lessons, the ACED Summer Camp also includes programming to address the growing skillset required by the accounting profession – public speaking skills, professional etiquette, and overall business acumen. The goal of each event in our camp is to bring accounting to life through increased awareness of career opportunities available and positively informing students’ perceptions of accountants. GVSU’s ACED Program was recently selected as a recipient of the Michigan Association of CPAs’ 2024 Excellence in Accounting Award in recognition of its “commitment to guiding students from economically disadvantaged districts toward successful careers in accounting (MICPA 2024).”

The West Michigan community is not immune to the accountant shortage crisis.  As is being reported at the national level, the need for accounting services continues to grow while the talent pipeline is shrinking.  Evidence suggests that low awareness of opportunities in the profession, outdated perceptions of the profession, and lack of diversity, equity and inclusion in the profession are contributing themes to not only the nationwide shortage, but also to the declines in accounting graduates we are experiencing in West Michigan.

Grand Valley State University’s School of Accounting at Seidman College is taking action to attract more students to the accounting profession and help fill and diversify the talent pipeline. Experiential programming implemented in GVSU classrooms and developed for high school students is aimed at changing the perceptions of the accounting profession by positioning students to experience the skills required to be successful accountants as well as the value that accounting brings to organizations. Modern accounting is much more than math.  It requires critical thinking and problem-solving skills, masterful written and verbal communication skills, as well as strong technical accounting skill.  After attending the 2024 ACED Summer Camp, a student from East Kentwood High School wrote:

I am really excited to study accounting and am starting to feel a passion for it…I had always thought that it is just numbers and the typical stereotypes that surround accounting just aren’t true which is what really excited me about accounting.

 While the strategies shared in the article do not completely resolve the labor shortage, they are meaningful steps towards changing the perceptions of accounting as a major and career path.  The accounting profession cannot solve the talent pipeline crisis on its own – educators, business leaders, and community members need to contribute as well.  The accountant shortage does not just affect accountants.  It also affects businesses, investors and the economy as a whole, as each relies upon accountants to prepare or validate financial reports which are then used to inform decisions and move our economy forward.  A strong pipeline of accountants will contribute to a strong economy, enabling businesses to flourish.

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