Building CPA Bench Depth for NJ Businesses

At Issue

By Althea D. Ford, NJBIA Vice President of Government Affairs On Aug 28, 2024

According to the US Census BUREAU, over 161,000 businesses were formed in New Jersey in 2023 alone. Whether nonprofit or for-profit, these businesses require smart financial professionals to help them meet their goals and execute their mission successfully. 

A dedicated and qualified financial team ensures a business stays in compliance with a host of federal and state laws and regulations, and it also tracks, monitors and forecasts fiscal trends that affect the company’s long-term economic viability.

One of the most crucial members of this financial team is a certified public accountant (CPA). Responsible for preparing and examining financial records, a CPA’s expertise is also needed for analyzing revenue and expenditure trends and understanding the impact of an ever-evolving federal and state tax code on a business’s strategic plans.

Any thriving business – for-profit, nonprofit, and government entities at all levels – needs a knowledgeable CPA to keep the organization’s financial house in order. 

Unfortunately, the accounting profession is not immune to the workforce shortage that plagues many industries. Licensee data from the US Bureau of Labor Statistics and NJ Division of Consumer Affairs shows there are just under 47,000 accountants and auditors in New Jersey, and only about 20,500 hold an active CPA license. 

The number of new CPAs entering the field has not been keeping up with attrition from retirements and career changes. Nationally, the number of people taking CPA exams has declined. The fact that fewer students are enrolling in accounting programs at colleges and universities points to more challenges ahead.

Have outdated stereotypes in movies and popular culture given the accounting profession a poor reputation? Are rising educational costs, and the extra year of college needed for the 150-credit hours required to become a CPA, an insurmountable barrier for too many students?

NJBIA and the New Jersey Society of CPAs (NJCPA) have partnered to identify and advance solutions to address the CPA shortage. This work will be multifaceted, with efforts to engage youth, young adults, and professionals in adjacent fields to expose them to the industry, amplify pathways for “upskilling” into the profession, and provide financial support to individuals embarking on a CPA career. 

NJBIA and NJCPA are committed to promoting interest and access to this well-paying career that has much potential for professional growth and development. It is a collaborative effort to develop a diverse and responsive pipeline of CPAs who will be integral members of the financial teams that all thriving New Jersey businesses need. 

To access more business news, visit NJB News Now.

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