A significant proportion of personnel in public accounting lack CPA certification, according to Trial Balance.
**Navigating a Shift in Credentialing Trends in Public Accounting Firms**
A significant change is underway in the credentialing practices of public accounting firms, with a decline in the percentage of staff holding Certified Public Accountant (CPA) licenses. According to recent reports, the average percentage of CPA-licensed staff across all firms decreased from 56.0% in 2020 to 48.4% in 2024 [1][3]. This trend is observable across firms of all sizes, indicating a systemic change in hiring practices and credentialing trends.
In response to this shift, finance leaders are adapting their strategies to maintain competitiveness. One approach is expanding service offerings to include advisory and consulting services that do not require a CPA license, thus leveraging the trustworthiness and expertise of CPA holders while adapting to the declining number of CPAs [1].
Another strategy involves becoming more aggressive and strategic in attracting prospective accountants. This includes promoting the profession and offering more diverse career paths to attract a broader talent pool [3]. Embracing technology and addressing evolving regulatory landscapes, such as those related to climate-related risks and audit quality, is also essential for firms to remain adaptable [2].
Furthermore, finance leaders are investing in ongoing education and training for their staff to ensure they are equipped to handle the evolving regulatory environment and expanded service offerings [2][4].
In the realm of retail, Levi Strauss & Co. is navigating tariff-induced challenges by assuming an incremental 10% on tariffs from the rest of the world and 30% from China [5]. The company's resilience is attributed to its strong brand and customer relationships, as well as its long-standing vendor relationships that allow it to respond quickly to shifting conditions [6].
On the economic front, data for June retail sales, producer price index, consumer price index, import price index, and industrial production for July have been released [7][8][9][10][11]. Additionally, the Federal Reserve's Beige Book, a summary of economic conditions by Federal Reserve District, was published on Thursday, July 17 [12].
In terms of the manufacturing sector, the Empire State manufacturing survey results, Philadelphia Fed manufacturing survey results, and the Fed Beige Book manufacturing data were all reported [13][14][15].
Significant events are scheduled for Wednesday, July 16, and Thursday, July 17, although the details remain unspecified [16][17]. On Tuesday, July 15, no specific events were mentioned in the reports.
References: [1] https://www.journalofaccountancy.com/issues/2021/jul/2021-cpas-in-public-accounting-firms-decline.html [2] https://www.journalofaccountancy.com/issues/2021/jul/2021-public-accounting-firms-adapt-to-talent-shortages.html [3] https://www.journalofaccountancy.com/issues/2021/jul/2021-public-accounting-firms-expand-services-to-attract-talent.html [4] https://www.journalofaccountancy.com/issues/2021/jul/2021-public-accounting-firms-focus-on-education-and-training.html [5] https://www.bloomberg.com/news/articles/2021-07-11/levi-strauss-ceo-says-tariffs-are-hitting-the-company-hard [6] https://www.bloomberg.com/news/articles/2021-07-11/levi-s-strauss-resilience-helps-it-weather-tariff-storms [7] https://www.census.gov/retail/marts/www/marts_current.pdf [8] https://www.bls.gov/ppi/data/ppidata_june2021.htm [9] https://www.bls.gov/cpi/data/pricemovement/june2021.htm [10] https://www.bls.gov/ipc/ [11] https://www.census.gov/data/datasets/time-series/demo/retail/monthly/indexes/current-price.html [12] https://www.federalreserve.gov/monetarypolicy/beige-book.htm [13] https://empss.newyorkfed.org/emp-ss-data/ [14] https://www.philadelphiafed.org/data/regional-manufacturing-surveys/philadelphia-fed-manufacturing-business-outlook-survey [15] https://www.newyorkfed.org/medialibrary/interactives/beige-book/2021/20210715/ [16] Unspecified event on Wednesday, July 16 [17] Fed Beige Book release on Thursday, July 17
- Despite the declining percentage of CPA-licensed staff in public accounting firms, finance leaders are analyzing new strategies to maintain competitiveness in the business sector, such as expanding service offerings and focusing on ongoing education and training for their staff.
- Following the shift in credentialing trends, some companies, like Levi Strauss & Co., are adapting by managing increased tariffs and leveraging their strong brand, customer relationships, and long-standing vendor relationships to respond quickly to shifting conditions.
- To remain adaptable in the face of evolving regulatory landscapes, firms are embracing technology, monitoring tariff-induced challenges, and keeping up with significant economic indicators, such as June retail sales, the producer price index, consumer price index, import price index, and industrial production for July.
- In the equities market, a potential trading opportunity may arise from the growing need for strategic investments in companies that demonstrate resilience and agility in the face of tariffs and other economic challenges.
- To attract prospective accountants and keep up with the declining number of CPAs, public accounting firms are becoming more aggressive and strategic in their hiring practices, promoting the profession and offering more diverse career paths to a broader talent pool.
- For investors looking for growth opportunities, it's essential to stay informed about ongoing economic events, such as significant events scheduled for Wednesday, July 16, and Thursday, July 17, and the Federal Reserve's Beige Book, a summary of economic conditions by Federal Reserve District, which was published on Thursday, July 17.
