The Accounting Pipeline Crisis May Need a Leadership Pipeline Fix

The accounting pipeline crisis persists despite the industry's efforts to attract a new generation to the profession. Although enrollment in accounting and related majors has risen nearly 12% since the mid-pandemic trough, it remains 3% below its long-term—and already declining—average, according to the National Student Clearinghouse.

Efforts to address the accounting pipeline issue have primarily focused on the "top of the funnel," where educators and early-career employers—such as public accounting firms—aim to introduce students and recent graduates to accounting as a viable career option. The goal is to guide them toward a long-term career in the field. Proposed solutions range from increasing compensation to making the path to Certified Public Accountant (CPA) certification more accessible for new graduates.

However, a recent survey launched by the Financial Education and Research Foundation (FERF)—which is still ongoing—suggests that the industry’s talent challenges go beyond recruitment. Accountants are struggling with an equally pressing issue: retention.

When asked, "What emphasis does your organization place on developing leadership skills among finance and accounting staff?" a surprising majority of respondents indicated that only a moderate to small level of attention is given to cultivating the next generation of finance and accounting leaders.



Without a robust leadership development plan and a clear path for young professionals to compete with their colleagues in operations, research, or even marketing, the accounting profession may win the early talent acquisition battle only to lose the more critical talent retention war.

Why Retention Matters

Talent retention remains a significant challenge for the finance and accounting sector as shifting workforce expectations and technological advancements reshape the industry. In a recent study by Wolters Kluwer, 41% of accounting organizations reported that staffing challenges would have a significant impact on the industry, prompting companies to reassess their strategies for attracting and retaining talent.

The recently released 2025 Financial Executives Priorities Report echoes this concern, highlighting that attracting and retaining qualified talent is particularly difficult for specialized skill sets, especially as AI and other technological demands evolve. The report revealed that 60% of finance executives ranked talent acquisition and retention as a top priority, underscoring its critical role in achieving organizational goals.

While data comparing promotion rates across departments such as accounting, sales, operations, and R&D is limited, it is widely acknowledged that these rates vary significantly. Functions with clear hierarchical structures—such as sales and operations—often provide more frequent promotion opportunities.

Conversely, specialized fields like accounting may have fewer leadership positions available, potentially resulting in lower promotion rates.

As FERF continues its research on the importance of leadership development and the accounting retention challenge, further insights are expected in the coming weeks.