The following is a guest post from Matt Wood, global head of finance and accounting outsourcing at Personiv. Opinions are the author’s own.
As Gen Z enters the workforce, they’re shaking up workplace norms by driving innovation and technology adoption to fit their lifelong habits and mindset. Or rather, they’re shaking up norms in some workplaces: Young adults have largely avoided accounting as a career choice, although there are some fresh signs of new interest among undergraduates.
Between 2016 and 2020, when the oldest members of Gen Z were about 23 years old, the number of U.S. college graduates earning accounting degrees fell 17%. Over the next two years, there was another 8% drop in accounting bachelor’s degrees awarded. The number of students earning master’s degrees in accounting and taking the CPA exam is also on a multiyear decline.
One bright spot amid these negative trends is the news that U.S. undergraduate accounting major enrollment increased by 12% in Fall 2024, compared to Fall 2023. (Graduate accounting program enrollments fell by 2.8% during the same period). If that upward trend continues among students pursuing bachelor’s degrees, the industry could see a fuller talent pipeline in a few years.
In the meantime, the ongoing long-term shortage of new talent poses a challenge for finance and accounting organizations. More than 80% of CFOs surveyed in 2024 agreed that there’s an accounting talent shortage, and 10% of them said it’s getting worse. Bureau of Labor Statistics data backs up this perception, projecting 6% growth in accounting and auditing job openings through 2033, at a time when many in the profession are retiring or changing careers.
The lack of enough entry-level accountants contributes to burnout for employees already on the job, which contributes to employee attrition, ultimately making the problem worse. Breaking this cycle starts with understanding why young adults aren’t interested in accounting careers now. Organizations can use these insights to become more attractive to the smaller pool of new graduates and find new ways to retain existing employees.
College costs, CPA requirements and more make Gen Z pause
Gen Z is wary of taking on college debt, and the average yearly cost of a university education in the US exceeded $38,000 in 2024. Enrollment in four-year colleges is down, in part because of the cost and this generation’s debt wariness. But for would-be accountants, a degree is a necessity.
After graduation, becoming a CPA requires clearing another set of hurdles. Preparing for the four required exams requires a big time commitment, and the cost of prep courses and test fees can add up to several thousand dollars. Those who pass the famously difficult tests then have to work with a CPA for a year before they can fully step into their own careers. Today’s young adults have grown up with the idea that agility and the ability to pivot are keys to success. For them, spending several years and tens of thousands of dollars to train for what seems like a very specific career path can feel like a risky choice.
The kind of hardworking and analytical students who might have been interested in accounting a generation ago now have options that may offer better pay, work-life balance, or growth opportunities. For example, a computer science graduate can earn more than an accounting graduate right out of school, without having to spend a year apprenticing to another professional. In many cases, alternate paths like associate’s degrees and “boot camp” training make entry into tech fields faster and less expensive than a four-year college. Continuing education, often sponsored by tech employers, allows for ongoing career evolution and skill-building.
New strategies for a new generation
As accounting stands now, it’s perceived by many Gen Z members as a poor fit for their life and career goals. Turning the decline around starts with better communication about what an accounting career can offer, as well as addressing some of the pain points that discourage young adults.
- Promote accounting’s stability and universal demand
The idea of a career full of pivots and direction changes doesn’t appeal to everyone, even among people raised in a fast-changing tech-driven world. For Gen Z students seeking stability over the long term, accounting offers a solid foundation — every business in every industry needs accounting skills to operate, maintain compliance, plan for growth and make smart decisions.
- Highlight career development opportunities
Because accounting skills are needed in every industry, newly minted accountants can plan a career path that aligns with their interests, whether that’s working in banking, healthcare, education, nonprofits or any of dozens of other sectors. Additionally, if your organization can offer upskilling or tuition reimbursement, you’re more likely to appeal to and retain motivated accounting talent.
- Talk about technology
Gen Z has grown up with tablets, smartphones and omnipresent connectivity, so talking about accounting’s tech tools can help rid the field of its paper-based reputation. Companies using AI and automation to handle basic accounting tasks can highlight those tools to appeal to younger employees who expect to work with the latest technology.
- Optimize the workload
Ninety percent of CFOs said they were already doing some outsourcing to fill open roles in 2024, reduce in-house workloads or both. Strategic use of outsourcing can help maintain or improve work-life balance for accounting team members. It can also free them to focus on challenging and rewarding projects that deliver more value for the organization. At the same time, the cost savings outsourcing offers can allow organizations to offer more competitive pay for in-house hires.
Strategize for the long-term
Sharing the positives about accounting careers and using technology and outsourcing to lessen the rote work for in-house talent are smart strategies now and over the longer term. Supporting skills development can also help organizations cultivate and keep accounting talent. Shaking up your messaging and operational practices now can help the accounting industry expand its appeal to younger members of Gen Z and the next generations coming along behind them
