Much digital ink has been "spilled" and podcast conversations had about the dearth of both accounting degree graduates and CPAs. In this episode, Ron and Ed will explore the topic including the "150-hour rule," reciprocity, licensure, and what are the possible ways to avert a crisis.
Use these show notes to follow along with the audio:
Segment one:
Breaking news from desk of The Soul of Enterprise. We are now seeking sponsorships along with the announcement from Ed at the beginning of today's show.
Ron just finished reading the new book from Ben Horowitz, “The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers” https://www.amazon.com/Hard-Thing-About-Things-Building/dp/0062273205
We’ve done a show before on occupational licensure which is related to today’s topic about the CPA shortage. More information here https://www.thesoulofenterprise.com/225
You can rate The Soul of Enterprise in less than 15 seconds at this link: RateThisPodcast.com/TSOE
Segment two:
“Hence, requiring 150 hours instead of 120 acts as a barrier to entry for potential CPAs with no accompanying increase in candidate quality.” More here: https://www.thecgo.org/research/reducing-a-barrier-to-entry-the-120-150-cpa-licensing-rule/
“The average starting salary of graduates with an accounting degree is not much different than those with one in complimentary acumens like finance or information systems.” https://www.cpajournal.com/2023/11/27/rethinking-the-150-hour-requirement-for-cpa-licensure/
“If you look at all the regulations from all the state societies, 90% of them are because we have this monopoly on the test function…the audit function.” —Ron Baker
Here is the CATO event on licensing restrictions and the CPA mentioned by Ron and Ed today https://www.cato.org/events/licensing-restrictions-certified-public-accountant-cpa-shortage
Here is the interview Ed did with Herschel Frierson, the 27th Chairman of the Board of Directors with the National Association of Black Accountants https://www.youtube.com/watch?v=U5jIOPoECZA
Segment three:
Boz Bostrom, the MNCPA Board Chair, prepared some remarks and recorded them as a part of the Minnesota Senate committee hearing on proposed alternatives to CPA licensure https://www.linkedin.com/posts/bozbostrom_i-was-scheduled-to-testify-today-as-a-part-activity-7171612639976960002-jOtu/
Here is a great example of a certificate program as opposed to licensure. Grow with Google: https://grow.google/certificates/
Ed spoke with Geof Brown on righting retention in the accounting profession. More here: https://sagethoughtleadership.com/geofbrown
Ed also spoke with Kari Natale on the CPA Diversity Report: Uncovering the Barriers to Success. More here: https://sagethoughtleadership.com/natale
Segment four:
Humility is important. “I think the general public would notice a garbage man shortage before they noticed the CPA shortage.” —Ron Baker
Join us again next week and remember — please send an email to asktsoe@verasage.com if you are interested in having a sponsorship conversation with us. We are now actively accepting new sponsors!
Bonus Content is Available As Well
Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.
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