Should the UK fast-track accountant qualifications due to the skills shortage?

The staffing crisis isn’t only prevalent within UK public practice – its wrath is impacting many other countries, too. 

In response to the skills shortage, the American Institute of CPAS (AICPA) has recently announced plans to create a faster pathway for accountants to become qualified. 

This proposal aims to address the shortage of qualified accountants in the US and meet the growing demand for tax, audit and bookkeeping professionals in the country.  

With big players like America taking this approach, it does beg the question: why aren’t professional accounting bodies here in the UK offering the same thing?  

In today’s blog, we’ll explore the US’ new proposals to make a case for why the UK could reap the rewards by following suit.  

How easy is it to become a qualified accountant in the US today?  

Currently, the process of obtaining CPA qualification in the US typically takes around seven years.  

The route to CPA has multiple steps and requires a lot of hard work, commitment and sacrifice from aspiring accountants.  

In the US, there is only one straight road to becoming a qualified accountant. The process looks the same for pretty much every professional in the accountancy field. Whereas in the UK, the time it takes to qualify depends on the route chosen. We have multiple accountancy bodies such as the ACCA, ACA and CTA, which all have their own individual requirements and exam specifications.  

For instance, it may take 2-4 years for an accountant in the UK to obtain ACCA qualification after completing their initial undergraduate degree. It’s a very similar story for UK accountants looking to gain ACA, CIMA and ICAEW qualifications, too.  

Here is what the CPA process typically looks like for an accountant in the US: 

1. Finish a Four-Year Bachelor’s Degree  

Accountants are expected to lay the necessary groundwork by graduating with a bachelor’s degree in a relevant field. Typically, bachelor's degrees within accounting, finance or a related discipline are worth 120 credits. 

2. Complete Additional Coursework  

Before you can even be considered for the CPA exam, students must complete an additional college course that’s worth 150 credits. This may include a master’s in accounting or taxation, or double-majoring during undergrad to complete more credits.  

3. Take the CPA Examination 

Now that you have all the necessary skills under your belt, you’ll qualify for the Uniform CPA Examination. This 16-hour exam (yep, you read that right) includes multiple-choice, scenario-based and essay-style questions, with subjects including auditing, taxation and regulation, and financial accounting and reporting.  

4. Gain Work Experience 

You’ve passed the exam with flying colours... you’ve got CPA in the bag, surely? Wrong. Accountants are expected to gain at least a year’s work experience to fully qualify. Some states even require students to work under the supervision of an active CPA.  

Sounds like a pretty grueling, time-consuming process, right? Committing to a seven-year qualification process is a huge decision for anyone to make.  

The lengthy training process and high-risk responsibilities are putting students off from pursuing a career in accountancy.  

Want to know what the skills shortage really means for recruitment? Discover how you can use the staffing crisis to your advantage. 

What are the US’ new proposals? 

While the plan is still in its infancy, the AICPA has suggested it may replace the grueling 16-hour exam with a stripped back test that covers the necessary skills and knowledge for junior accountants. 

The AICPA hopes that this “streamlined process will attract more candidates to pursue a career in accounting, addressing the current shortage of qualified professionals in the field”.  

As encouraging as this is, it’s important to remember that these proposed changes are still in the early stages. The AICPA will require approval from state boards of accountancy before the new process can be implemented.  

Accounting Peek, a US accounting news website, reports that “the push for a quicker path to qualification for accountants in the US reflects the industry’s need for more professionals and a more diverse workforce to meet the demands of a rapidly changing business environment.”  

Would fast-tracking the qualification pathway here in the UK really reduce the skills shortage? 

The struggle to retain and attract talent is something most firms within UK public practice face.  

The skills shortage isn’t going anywhere any time soon. A call for change is needed to address the issue, and reducing the lengthy qualification courses could be a good way to re-inspire the accountants of tomorrow. 

Over in the US, the number of US students taking accounting courses and going on to sit professional exams has fallen.  

Similarly, here in the UK, according to the Financial Reporting Council (FRC), there are fewer qualified accountants joining the industry since 2016. 

The FRC’s Key Facts and Trends 2022 report states, “the number of student and qualified members joining established bodies like ACCA, ICAEW and ICB is in decline. The percentage growth of students in the UK and Republic of Ireland declined by 2.1% in 2019-2020 and 2.2% overall from 2016 to 2020.” 

While 2024 data is yet to be published, it’s safe to assume that this trend has remained consistent. We’re seeing first-hand that firms are struggling to find candidates to meet growth targets or replace retiring staff.  

Also, it’s important to mention that the rise of AI poses many risks to junior and entry-level accountants. Students are digitally native by nature and understand that AI could potentially replace significant parts of the job before they’ve even graduated. Cutting course-time will reduce these fears and encourage the next generation of tax, audit and accounting professionals to pursue a career with learning and growth opportunities.  

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What negative implications could fast-tracking qualifications have? 

While the pros of reduced training courses may outweigh the cons, there are nuances to be considered.  

Being an accountant is a high-responsibility job. Every student going into the profession knows and accepts this as simply part of the job. You’re responsible for the financial health of individuals, families and businesses. Your advice is gospel when it comes to helping people make the best financial decisions. Your clients will look to you for trusted counsel.  

Therefore, some may argue that reducing course times could allow tomorrow’s accountants to cut corners. Decreasing education could put them at a disadvantage, as they won’t have received the same robust training as the generation preceding them.  This could result in lowered standards and a decline in service quality.  

Overall, we believe that the fast-tracking of accountant qualifications is a promising start for addressing the skills shortage within public practice. From working with junior accountants, we can appreciate why entry-level staff may not want to go through the pain of obtaining CTA, ACA or ACCA qualification. The staffing crisis is a fundamental systemic issue that calls for action, and we think that lowering course times could help mitigate it.  

What do you think? Let us know in the comments below! 

Are you an aspiring accountant looking to kickstart a career within public practice? Not sure what qualification to obtain or where to even begin? 

Here at Public Practice Recruitment Ltd, we work with hundreds of candidates every year to provide the career counselling they need to build their skillset and pursue a rewarding, lucrative career within public practice.  

Whether you’re considering a career change or looking to join a firm that offers good progression, our team is here to help. Get in contact with us today or search our jobs to see what’s currently on the market.