Trends in the supply of accounting graduates

As business becomes increasingly complex and global, the demand for CPA services grows.  With many CPAs approaching retirement, the need for new accountants to fill the pipeline of opportunities is greater than ever.

A recent AICPA study, 2008 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits, shows that some help may be on the way. More students graduated with accounting degrees in the 2006-07 school years than have since the AICPA began tracking this data in 1971. And more than 64,000 students graduated with bachelor’s and master’s degrees in accounting according to the survey.

This is encouraging news for the profession. Other key findings from the supply and demand survey are:

• More than 203,000 students enrolled in accounting programs at both the undergraduate and graduate levels, (a 19% increase since 2004)
• The gender ratio of graduates is fairly close at 52% female and 48% male

These statistics show a significant uptick in students majoring in accounting. Many believe SOX contributed to a growing interest in the profession. “The years in the aftermath of Sarbanes-Oxley have spotlighted the critical role the accounting profession plays in our capital market system,” said Denny Reigle, AICPA director – academic and career development. “One fortunate result of SOX was greater interest in accounting on the part of students, as this report attests.”

The demands on the profession likewise have led to substantial hiring increases by public accounting firms, the primary employers of new graduates. The AICPA report reveals that hiring of new graduates by firms in 2006-07 shot up 83% over the previous three years. Sixty-seven percent of the firms responding to the survey anticipate continued growth in hiring.

Furthermore, the increase in demand has caused accounting and finance salaries to increase an average of 5% to 10% per year. In some cases, professionals with expertise in forensic accounting and other fields can command 20% or more.

Investing in the Future...The Centennial Campaign to benefit The Ohio CPA Foundation

Each year, The Ohio Society has expanded its outreach to students, ranging from those seeking advanced degrees on Ohio’s college campuses to thousands of elementary students annually through the many programs sponsored by the Ohio CPA Foundation. “The Ohio Society has implemented many programs to encourage and excite young students to pursue a future in accounting,” said J. Clarke Price, CAE, OSCPA President and CEO. “Accounting gives individuals the opportunity to learn the many aspects of business and finance while rewarding their achievements (or success) at the same time.”

The Ohio Society has recently launched the Centennial Campaign to benefit The Ohio CPA Foundation in honor of its Centennial anniversary. With an overall goal of $1.5 million, the campaign has already topped the $1 million mark in gifts and pledges thanks to generous donations from CPA firms and individuals. This is an opportunity for you to give back to your profession and invest in the future.

Centennial Campaign details | Donate now

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