The accounting profession is facing a major talent crisis, and KPMG U.S. Chair and CEO Paul Knopp is sounding the alarm. In recent statements, Knopp highlighted the urgent need for reforms to address the growing shortage of accountants, a problem that is already affecting businesses and financial systems across the country.

accounting shortage 2025

The Accountant Shortage Crisis

Accounting has long been a stable and respected career path, but in recent years, fewer young professionals are entering the field. This decline is due to a combination of factors, including changing career preferences, an aging workforce, and high educational requirements for CPA licensure. As companies struggle to hire enough accountants, the potential risks to financial reporting, compliance, and corporate governance are increasing.

KPMG CEO’s Perspective

Paul Knopp has pointed to the 150-hour education requirement for CPA licensure as a significant barrier to entry for aspiring accountants. This requirement, which effectively translates to a fifth year of education beyond a standard bachelor’s degree, adds financial and time burdens that many students are unwilling or unable to take on. Knopp argues that this hurdle is deterring talented individuals from pursuing accounting careers at a time when they are needed most.

Proposed Solutions

To combat the shortage, Knopp and KPMG are advocating for alternative pathways to CPA licensure. One such proposal is replacing the additional education requirement with practical work experience or apprenticeship models. This shift could make the profession more accessible and attractive to a broader range of candidates without compromising the quality of financial professionals entering the workforce.

Additionally, firms and regulatory bodies are exploring ways to modernize accounting education, introduce more technology-focused training, and increase outreach to students early in their academic journeys. By promoting accounting as a dynamic and rewarding career choice, these efforts aim to reverse the downward trend in new accountant entries.

The Impact on Businesses

The shortage of accountants isn’t just a challenge for firms—it has broader implications for businesses of all sizes. Without enough qualified professionals, companies may face delays in financial reporting, higher compliance risks, and increased costs as they compete for scarce talent. This issue underscores the need for immediate action to ensure that businesses have access to the skilled accountants they require.

Looking Ahead

The accounting profession is at a crossroads. Without significant reforms, the shortage of accountants could deepen, creating serious consequences for the financial industry. KPMG and other industry leaders are pushing for change, but it will take a concerted effort from educational institutions, regulatory bodies, and businesses to implement meaningful solutions.

Addressing this crisis now will help ensure a strong and sustainable accounting workforce for the future. Whether through policy changes, educational innovation, or shifts in licensure requirements, the time to act is now.