To combat growing talent gap, Pa. lawmakers approve new accountant licensure path

• By Jaxon White / LNP | LancasterOnline

HARRISBURG — When people need help completing their tax returns or businesses have to work through an audit, they call a certified public accountant.

But accountants in Pennsylvania and nationwide say there’s a shortage in their ranks of professionals who have completed the certification process, with many instead opting to enter the workforce.

Last month, lawmakers quietly approved a new path for students to obtain a certified public accountant license to address that shortage.

The new law would allow anyone who completes a bachelor’s degree (in any field, though state law requires credits in accounting-relevant coursework) and works at least two years in a CPA-approved accounting job to take the licensing exam.

It also extends the time students have to finish the four sections of the proctored exam once they begin from 18 to 30 months, and streamlines the process for out-of-state licensed public accountants to practice in Pennsylvania without receiving a separate permit.

The new legislation maintains the option of the traditional path, in which a student obtains 150 credit hours and works for at least one year in the accounting field before taking the exam.

Accountants who have advocated for licensure reform have long argued that the credit-hour requirement exceeding the traditional 120 credits for a bachelor’s degree often forces students to pursue a graduate degree they do not need.

Jennifer Cryder, chief executive of the Pennsylvania Institute of CPAs, said many accounting majors “did not see the return on time invested as being valuable enough” to obtain their formal CPA license.

A study by Cryder’s trade organization found 53% of surveyed accounting majors said they were not planning to become CPAs because the 150 credit hours were not worth the time investment. Forty-six percent also said the additional education needed to meet the credit hours was not worth the financial investment.

Pennsylvania’s new CPA path, which took immediate effect when Gov. Josh Shapiro signed it into law June 30, is the first of its kind in the nation. According to the National Association of State Boards of Accountancy, other states, including Ohio and Connecticut, have since either enacted similar reforms or have them scheduled to go into effect next year.

Pennsylvania’s new law passed unanimously out of both chambers of the Legislature.

Upper Leacock Republican state Rep. Keith Greiner is one of the few CPAs serving in the General Assembly. He co-sponsored the House’s version of the reform bill.

“When it comes to professions, I think CPAs are one of the most respected,” Greiner said. “In passing this, I think it encourages more young people that the profession is getting very diverse.”

The law’s legislative sponsor, Republican Sen. Scott Hutchinson of Venango County, said in a statement that his legislation will help modernize licensure requirements “while maintaining the integrity and rigor of the profession.”

“Act 27 lowers barriers to entry while preserving high standards, which is exactly what we need to attract new talent into the field,” Hutchinson said. “This is about investing in Pennsylvania’s future — in our businesses, schools, governments, and communities that rely on trusted financial professionals.”

Hutchinson’s office said the Pennsylvania Society of Tax and Accounting Professionals also supports the licensure reform, but the organization did not respond to a request for comment.