How the Accountant Shortage Can Boost Your Career Prospects
Monday, September 23, 2024
Carlson School Graduate Programs
Find Your Master's DegreeResources for Prospective Graduate StudentsIf you’re considering advancing or pivoting to a career in accounting, now’s a great time to do so through the pursuit of a master’s degree. The demand for accountants is on the rise and this trend is expected to continue.
In this article, you’ll learn about the career opportunities for accountants and the benefits of earning a master’s degree in accounting.
Growing demand for accountants and CPAs
Several converging forces have created a shortage of accountants, especially certified public accountants (CPAs). According to the American Institute of Certified Public Accountants, 75% of CPAs will retire in the next 15 years. Additionally, skewed perceptions of accounting, emerging fields with abundant career opportunities like finance and business analytics, and wage stagnation have pushed young professionals away from pursuing the profession. As a result, there’s a high demand for new accounting talent in all industries and sectors across the U.S.
To attract and retain talent, starting salaries for accountants have increased. For example, the mean salary base for the Carlson School’s Class of 2023 accounting undergraduates is $66,390. The Carlson School’s Master of Accountancy graduates’ average starting salary is around $70,000. Compare that to a few decades ago when the average salary for entry-level accountants hovered between $40,000 and $50,000.
An accounting career also offers security and clear advancement opportunities as you’ll learn in the next section.
Career prospects and advancement
Due to the talent shortage, career prospects for accounting professionals are robust. The U.S. Bureau of Labor Statistics projects an average of 126,600 openings for accountants each year for the next decade.
Accounting is also a resilient field and can be considered “recession-proof” due to its nature and function. In both economic growth and downturns, organizations need financial oversight and support. Globalization and an ever-evolving complex tax and regulatory environment also contribute to the strong demand for accountants. For example, accountants play a key role in managing international mergers and acquisitions and provide guidance on staying compliant with new laws.
The demand for talent isn’t confined to one location or region in the U.S.; it spans industries and regions, offering opportunities to pursue accounting across the country with companies of all sizes.
More reasons to pursue a master’s in accounting
An accounting career trajectory is well-defined, with ample opportunities for professional and salary growth. While pursuing an accounting degree, you’ll need to decide whether to go into public or private accounting. Recruiting for public accounting typically begins early in your program, often with a summer internship at a public accounting firm.
Beyond public and private accounting, there are also alternative paths and specializations to consider as you advance in your career.
Public accounting career advancement
Most graduates start in public accounting as a tax or audit associate. If you choose this path, you won’t be part of any one company’s internal accounting department. Instead, you’ll provide a range of accounting services to your firm’s clients as part of a team.
Public accounting firms range from the “Big Four”— Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young, and KPMG—to smaller regional firms that specialize in an industry. Public accounting is fast-paced and demanding with long hours during busy seasons. However, it’s an invaluable time to gain a variety of experiences, skills, and knowledge. This will help you determine a specialization, which you can use to advance your career.
To progress past entry-level positions as a public accountant, you’ll need to earn a CPA designation. Completing a master's in accounting can help you meet licensing requirements.
Public accountants typically follow this career progression at their firms:
| Years of Experience | Levels | Position Description | Salary Range, National Average (Glassdoor, 2024) |
|---|---|---|---|
| 1–3 | Associate/Staff | Entry-level, responsible for carrying out basic accounting duties and assisting experienced colleagues | $59,000–$88,000 |
| 2–6 | Senior Associate | Additional responsibilities, such as managing teams and reviewing work done by associate/staff level | $84,000–$130,000 |
| 7–9 | Manager | Responsible for the overall workflow of client projects and manages a team | $100,000–$154,000 |
| 10–15 | Senior Manager | Similar responsibilities as a manager, and demonstrates leadership in their chosen specialization or initiatives | $118,000–$176,000 |
| 15+ | Director | Responsible for providing direction and strategy in their given area in the firm | $142,000–$225,000 |
| 15+ | Partner | Responsible for the firm’s strategic direction, revenue, and operations | $250,000+ |
Salary and compensation will also depend on the firm and location or region.
Currently, competition between firms for entry-level public accountants is especially high because of the decline in accounting graduates. In addition, many public accountants have been leaving for private accounting where there’s typically better work-life balance.
A common path for accountants new to the profession is to start in public accounting and move to private accounting after a few years. Others discover they enjoy public accounting and will stay and try to move through a firm’s various senior and managerial positions.
Private accounting career advancement
Private accounting, commonly known as industry accounting, is where you work for a single company as part of their internal finance department. If you choose to pursue this path, responsibilities will be more consistent and you’ll gain a depth of experience in one industry and company.
Industry accounting usually offers more manageable workloads and better work-life balance. However, opportunities for advancement may be limited, especially if you want to stay with the same company. You may also reach management-level positions without a CPA license in the private accounting path.
Whether you choose private or public accounting, you can expect steady salary increases and a clear career progression if you choose higher-level positions. Some accountants advance to executive positions, such as the chief financial officer or controller.
Alternative career paths
A graduate degree in accounting can also prepare you to pursue other career paths. Some use their accounting education to pursue entrepreneurship, business consulting, fundraising, or to become a purchasing manager, fraud investigator, or some other career path.
How a master’s in accounting can benefit you
The demand for accountants will remain high in the coming years. Consider a Master of Accountancy if you’re looking to advance or pivot into this stable field.
1. Gain in-depth knowledge and skills
A good graduate program in accounting will prepare you to understand the whys of accounting, which will help you build the foundational knowledge you need to learn quickly on the job. Having this solid foundation can be advantageous if you’re interested in pursuing specialized positions sooner. For example, bank failures in early 2023 have increased the demand for risk and compliance professionals. With the accounting talent shortage, these higher-level positions can be open to you if you demonstrate an aptitude for learning on the job.
At the Carlson School, you’ll not only take classes with professors but also industry experts. This ensures you stay current with the industry trends and are developing the skills employers are seeking.
2. Qualify for the CPA exam
Completing an accounting master’s program will help you meet the 150 semester hours of education required to take the CPA exam. Due to the CPA shortage, your company may support your pursuit of licensure. The company may help with exam preparation and cover the costs to obtain the certification, including tuition for an accounting graduate program.
If you’re currently employed, look into your company’s employer assistance programs. If your employer doesn’t currently offer any programs, you can still ask your employer for support.
While a CPA license isn’t critical for all positions, it may give you an advantage if you want to increase your earning potential or expand your future career options.
3. Build a support network
Whether you’re new to accounting or already in the field, a graduate accounting program can expand your professional network and provide resources so you can develop a clear career strategy. For example, at the Carlson School, we provide individualized career support for our master’s accounting students. You’ll have access to a dedicated career coach and numerous resources so you can determine the best career path for you and feel confident to pursue it.
The future for accounting professionals
The combination of high demand, job security, and attractive salary progression makes accounting an excellent career choice—especially if you’re seeking lifelong learning. As an accounting professional, you’ll need to stay updated with changing policies and regulations, technological advancements, and new analytical methods. Modern accountants are more than “number crunchers.” In today’s world, accountants are problem solvers and strategic advisors. You’ll be required to form sound judgments to guide an organization’s financial decisions.
The Carlson School’s Master of Accountancy program is a STEM-designated degree program that you can take full-time or part-time. There are two curriculum tracks: One if you have an accounting undergraduate degree and one if you come from a non-accounting background. Scholarships and a limited number of teaching assistant positions are available.