Industry

The Accounting Shortage in 2026: What It Means for CPA Candidates

First-time CPA candidates fell 33% from 2016 to 2021, but enrollment is rebounding and the 120-credit pathway is accelerating entry. Here is the current state of the pipeline.

By Brennan KolarFounder, Atlas CPA Index

Published March 8, 20265 min readVerified as of July 27, 2026

The Numbers Tell the Story

The accounting profession is facing a structural talent shortage that has been building for years. As The CPA Journal reported, citing AICPA Trends data, first-time CPA exam candidates fell 33% from 48,004 in 2016 to 32,188 in 2021, with the AICPA/CIMA 2022 Annual Report showing a further 7% decline in total candidates from 2021 to 2022. According to Robert Half's Demand for Skilled Talent report, 62% of finance and accounting leaders are facing challenges hiring and retaining accountants. Separately, TalentFoot's internal placement data (a modeled aggregate for 2024-2025) puts average time-to-fill for CPA-required roles at 73 days — 41% longer than comparable positions without the designation.

Signs of Recovery

There is a bright spot. In February 2025, the AICPA reported that undergraduate accounting enrollment increased 12% in Fall 2024 compared to Fall 2023, adding nearly 29,000 new students. Total undergraduate accounting majors reached 267,278 — the highest since 2020. The 120-credit pathway movement (now enacted in 25+ states) is also expected to reduce barriers for new candidates entering the profession.

What This Means for Current CPA Candidates

The shortage creates real advantages for candidates entering the profession now.

Higher starting salaries — Firms are competing aggressively for CPA talent, driving compensation up across all experience levels
Faster career progression — With fewer CPAs available, qualified professionals are advancing into senior roles more quickly
Stronger negotiating position — Remote work flexibility, sign-on bonuses, and tuition reimbursement are increasingly common
Expanded pathways — The 120-credit movement reduces the time and cost to enter the profession
Job security — Demand for CPAs consistently outpaces supply across public accounting, industry, and government

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The 150-Hour Rule Factor

The 150 credit-hour requirement for CPA licensure has long been recognized as a significant barrier contributing to the shortage. Requiring what amounts to a five-year degree — on top of a CPA exam with a 40-60% pass rate per section — has discouraged qualified candidates from entering the profession. The 120-credit pathway movement is the profession's most direct response to this problem, and its rapid adoption across states signals that the industry recognizes the urgency.

Bottom Line

If you are considering pursuing your CPA license, the market conditions have never been more favorable for new entrants. The combination of high demand, rising salaries, expanded licensing pathways, and rebounding enrollment means that the return on investment for earning your CPA is stronger than it has been in years. The shortage is not going away — by all accounts, it is structural and long-term.

Sources

1.Robert Half — The Accountant Shortage Will Persist in 2026(accessed Mar 8, 2026)
2.CPA Trendlines — New 20-Year Low in College Accounting Graduates(accessed Mar 8, 2026)
3.The CPA Journal — The Accounting Profession Is in Crisis(accessed Mar 8, 2026)
4.TalentFoot — How the CPA Shortage Is Extending Time-to-Fill(accessed Mar 8, 2026)

Related on Atlas CPA Index

Is the CPA Worth It? →CPA Salary Guide →120-Credit Pathway Update →Career Paths for CPAs →Best CPA Review Courses (2026) →

Brennan Kolar

Founder, Atlas CPA Index

Brennan Kolar is the founder of Atlas CPA Index, an independent CPA review comparison platform covering all 55 U.S. jurisdictions. With over 10 years of experience with CPA review, he built Atlas to help candidates find the right review course based on how they actually learn, not which provider has the biggest ad budget.

Learn more about the author

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