Accounting majors are declining due to a "perfect storm" of factors, including the high cost and time investment of the 150-hour CPA rule, uncompetitive starting salaries compared to tech/finance, and a poor image regarding work-life balance (e.g., "busy season" burnout). Additionally, fears of AI-driven automation and a desire among younger generations for more dynamic, purposeful work have reduced interest in the field.
Many would agree that the most significant reason for the decline in accounting majors is the 150-hour requirement. Aside from having to pay an additional year of tuition, many students traditionally wait until they graduate before they work full-time at an accounting firm.
The 150-hour requirement is seen as a barrier to entry. Accounting is perceived as boring. Compensation is lower than for other majors such as finance and technology. A lack of diversity seems apparent. The accounting major is perceived as too specialized. The cost of education is too high.
Technological disruption
AI-powered software increasingly automates tasks such as data entry, bookkeeping and report generation, reducing the need for manual effort. This trend is concerning when it comes to job security. It may even push accountants to explore new career paths that offer more future-proof prospects.
The CPA credential remains a cornerstone of the profession, but new data indicate its prominence is steadily declining. Between 2020 and 2024, the average percentage of staff holding CPA licenses across all firms dropped from 56.0 percent to 48.4 percent.
Which “boring” jobs are being revived by Gen-Z? No offense at all to the accountants in the room, but when I saw a headline indicating that Gen Z is reviving “boring” jobs, my head went straight to accounting. Sure enough, that's the job Gen-Zers are eyeing the most.
Short answer: AI will not replace accountants. It will automate many repetitive accounting tasks, like data entry, invoice processing, reconciliations, and reporting, but accountants will still be needed for work that requires judgment, compliance expertise, interpretation, and/or strategic decision-making.
Accountants tend to be predominantly conventional individuals, meaning that they are usually detail-oriented and organized, and like working in a structured environment. They also tend to be enterprising, which means that they are usually quite natural leaders who thrive at influencing and persuading others.
No, an accounting degree is not useless without a CPA; it opens many doors in corporate, government, and non-profit sectors (like financial analysis, management accounting, and internal audit), but a CPA is often essential for public accounting (especially auditing), high-level management roles (like CFO/Controller), and roles requiring public attestations, with the CPA providing a significant career boost, higher earning potential, and faster advancement, according to Bellevue University, Franklin University, Post University, and SuperfastCPA.
The average age of a CPA in the US is 52–53 years old.
While it may not be universally acknowledged as the hardest business major, accounting is often considered more challenging than many other business degrees. This is partly due to the stringent requirements to become a certified accountant and the rigorous exams one must pass to earn professional certification.
Will CPAs become obsolete? No, CPAs will not become obsolete. While AI can handle routine tasks like data entry and invoice processing, CPAs offer strategic decision making, regulatory compliance, and personalized client support, skills that AI can't replicate.
Comparison between CA and CPA
It is difficult to determine which of these professions offers a higher salary, as the salary of a CA or CPA can vary greatly based on several factors. However, in general, CAs tend to earn slightly more than CPAs in India.
CPAs are quitting due to intense burnout from long hours, heavy workloads, and poor work-life balance, compounded by low salaries relative to other fields, monotonous tasks, and limited growth opportunities, with younger professionals also concerned about AI's future impact and a lack of purpose, creating a significant industry-wide talent shortage.
A CPA license is considered very prestigious: The CPA license is the most widely recognized professional credential in the accounting industry.
While no job is completely recession-proof, accountants enjoy more job security than many other professions. The essential nature of accounting services – including tax compliance, financial reporting, and auditing makes it a stable field, even during economic downturns.