In 2024, for the first time in recent history, fewer than half of client-facing employees at public accounting firms held CPA licenses. According to Inside Public Accounting’s latest Data Dive, the percentage of CPA-licensed staff dropped from 56% in 2020 to just 48.4% in 2024. The drop is even steeper among larger firms, where only 41.5% of staff held CPA credentials last year.
This is a systemic shift across firms of all sizes, pointing to a fundamental redefinition of what it means to be an accounting professional today.
Beyond the CPA: Rethinking the Accounting Workforce
The decline in CPA credentials doesn’t just reflect a talent shortage. It signals broader changes in recruiting, service offerings and strategic positioning. Larger firms are leaning more heavily into advisory and consulting services as private equity investment fuels their expansion. This growth is accompanied by a willingness to bring in non-CPA professionals with backgrounds in data analytics, technology and operations to support more diverse service portfolios.
These changes are trickling down to smaller firms as well. Regardless of size, accounting firms are beginning to prioritize capabilities that go beyond traditional audit and tax expertise. In some cases, they’re filling roles once reserved for CPAs with professionals who bring different, but still valuable, skills to the table.
The Push to Modernize the Profession
In response to long-standing pipeline issues and declining interest in the CPA exam, state boards are easing education requirements. Simultaneously, accounting firms and industry groups are experimenting with campaigns to improve the profession’s image—some more successfully than others. Efforts include partnerships with media influencers, outreach to high school students and advertisements meant to reposition accounting as an exciting and tech-forward career.
Inside firms, the change is even more pronounced. Many are investing heavily in automation, particularly for repetitive tasks in audit, tax compliance and financial transformation. This pivot toward technology has shifted hiring practices in favor of candidates who are agile, tech-savvy and able to work cross-functionally.
What This Means for CFOs
For CFOs who rely on public accounting firms for critical functions, such as audits, compliance, outsourced accounting or strategic consulting, these workforce changes require a new lens. The presence of a CPA used to signal a certain level of technical depth and professional rigor. Now, CFOs must look more closely at a firm’s full talent mix to assess whether the team assigned to their business has the right combination of expertise and experience.
It may also mean recalibrating how RFPs are evaluated, how vendor relationships are managed and what skill sets are prioritized when partnering with external providers. Some CFOs may prefer teams with more traditional credentials, while others may value a broader advisory approach that blends accounting fundamentals with strategic insight.
A Turning Point for Trust and Value
The decline in CPA-licensed staff is not necessarily a warning sign, but it is a call to reassess. The firms that thrive in this new environment will be those that can demonstrate value through a wider array of expertise. For finance leaders, understanding this shift is key to ensuring the services they rely on continue to meet their standards and support their goals.
Looking to strengthen your finance team? Connect with Russ Hadick & Associates to find top talent that makes a difference.
