Addressing the CPA Shortage with International Talent

Why International Students?

International students are an invaluable asset in the U.S. accounting sector, offering a rich blend of perspectives, skills, and benefits vital for the contemporary global business landscape (Group of Eight, 2014). Their economic contribution is also noteworthy. A Higher Education Policy Institute (HEPI) report illuminated the significant net economic gains the United Kingdom receives from international students. For example, each full-time non-EU (international) student contributes approximately £17,900 in net cash, £600 in fiscal benefits, and £5,500 to the GDP yearly (Phil Vickers and Bahram Bekhradnia, “The Economic Costs and Benefits of International Students,” Higher Education Policy Institute, July 2007, https://bit.ly/48DJ6i0). Furthermore, in 2012, Australia’s higher education sector generated over A$15 billion in export income, with A$9.8 billion attributed to higher education of international students (Group of Eight, 2014). This data emphasizes how international students greatly boost the global economy.

The U.S. accounting profession is facing a diversity crisis, with many accountants leaving or avoiding the field altogether (Jacqueline Burke and Ralph Polimeni, “The Accounting Profession Is in Crisis,” The CPA Journal, Sep/Oct 2023, https://bit.ly/3Hj3V61; Kathy Gurchiek, “The CPA Shortage,” SHRM, May 6, 2023, https://bit.ly/4aNURDM). International accounting students, however, can be a way of adding valuable diversity. Their varied cultural backgrounds and global experiences bring new viewpoints and innovative approaches to financial challenges. For example, a Japanese student might offer insights into international financial standards, while a Chinese student could share expertise on complex tax laws in emerging markets. This diversity of thought and experience can help U.S. firms better engage in global business. Moreover, group work involving domestic and international students can lead to the exchange of diverse ideas and practices, preparing them for the culturally diverse global business world. This diversity fosters a more inclusive and innovative professional environment. Welcoming these international students can make the U.S. accounting industry more dynamic, creative, and globally competitive.

In recent years, public accounting firms have increasingly hired individuals from non-accounting backgrounds for roles traditionally occupied by accountants (Gurchiek, 2023). This shift shows the growing importance of analytical and technological skills in accounting. This also seamlessly aligns with the CPA exam’s recent emphasis on technology and international business insights. Students that are proficient in these areas can help firms meet a rising demand for a more well-rounded and technologically adept accounting workforce. Furthermore, as Zha Qiang (“Internationalization of Higher Education: Towards a Conceptual Framework,” Policy Futures in Education, November 2, 2003, https://bit.ly/3tXPKjK) suggests, incorporating an international dimension in teaching, research, and service elevates the overall standards of higher education.

Strategies to Increase International Student Enrollment

Strategy 1: Redefining accounting as a Science, Technology, Engineering, and Mathematics (STEM) discipline should be the first strategic response to tackle the national deficit of skilled accountants. STEM certification is a recognition awarded to schools or programs that meet specific standards in teaching STEM, indicating high-quality and up-to-date education in these fields. This reclassification is more than a label; it’s an acknowledgment of the integral role of technology in accounting practice. This change will address the pressing shortage of accountants and CPAs by making the field more appealing to young talent through enhanced educational opportunities. It will also enable deep skill development in emerging areas like data analytics and blockchain. According to the AICPA, recognizing accounting as part of STEM could enhance career prospects, mitigate the shortage of professionals in the field, serve employers better, and strengthen the global competitiveness of the United States [AICPA (Sponsored Content), “7 Reasons Why Accounting Should Join Other Tech Professions as a STEM Field,” Politico, April 4, 2023 https://politi.co/3RPZhS0).

With the STEM designation, the accounting program becomes more desirable for international students, including the advantage of prolonged (two more years) Optional Practical Training (OPT). According to a survey by World Education Services (WES) in 2017, 73% of international students and alumni stated that access to work experience was a key factor in their decision to pursue studies in the United States. (Bryce Loo et al., “Career Prospects and Outcomes of U.S.-Educated International Students,” October 2017, WES Research, https://bit.ly/3OVLkBe). In fact, a significant portion, over half, of the students from India, Iran, Kuwait, Nepal, and Nigeria in the United States are pursuing studies in STEM disciplines (OECD, “Education at a Glance,” https://bit.ly/3SfN5vi, 2015). A step-by-step guide on what needs to be done to receive the STEM designation for accounting programs is presented below:

Step 1: Curriculum Integration of STEM Elements. An accounting department must integrate vital STEM elements, including quantitative analysis, data analytics, technology, and mathematical skills that are pertinent to accounting into the accounting curriculum. One example is the use of advanced application tools and software (e.g., Advance Excel, Access, Tableau, Power BI, IDEA) for data management, analysis, and visualization. For example, the Master’s in Professional Accounting program in the Whitman School of Management at Syracuse University was granted STEM designation through the incorporation of accounting analytics and business analytics courses. These courses involve utilizing advanced application tools, statistical principles, and software such as Access, Tableau, Power BI, and SAS for managing big data, analyzing information, and visualizing data. The inclusion of these technology-focused and quantitative required and elective courses contributed to the program’s attainment of the STEM designation (Dawn McWilliams, “Whitman School Receives STEM-Designation for Master’s in Professional Accounting Program,” April 8, 2022, https://bit.ly/3US6vrS).

Step 2: File a Petition to Change the CIP Code. Next, an accounting department needs to file a petition to the university administrations to change the CIP code, as the STEM certification of a program hinges solely on its designated CIP code. By presenting a well-rounded and evidence-based case that addresses various crucial elements outlined below, the accounting department can effectively communicate the significance and need for attaining STEM designation for its programs to the upper administration.

The department should initiate the case by outlining the limitations or gaps in the currently assigned non-STEM CIP code that do not fully capture the evolving nature of accounting education, particularly the integrated technology, analytics, and quantitative approaches. Then, it needs to select the potential STEM designated CIP code (“DHS Approved STEM CIP Code List,” https://ice.gov/doclib/sevis/pdf/stemList2024.pdf) that most closely aligns with the content and objectives of the curriculum. Unfortunately, there are no STEM-designated CIP codes within the field of accounting. Therefore, to support the argument, the department would need to demonstrate that the new curriculum is more closely aligned with a discipline outside of accounting (e.g., CIP 27.0305 for Financial Mathematics or CIP 52.1399 for Management Science and Quantitative Methods). The AIC-PA has developed a toolkit to assist accounting departments in transitioning their current CIP code to qualify for STEM recognition. This resource includes a comprehensive list of the most frequently utilized CIP Codes in accounting programs and provides information on the Accounting STEM initiative within the profession (AICPA, “The Latest on the STEM Initiatives,” 2023, https://bit.ly/3SK5dw8).

Quantitative analysis, data analytics, technology, and math skills are STEM elements vital to accounting.

To strengthen the case, the department can demonstrate how obtaining STEM designation for their accounting programs has benefitted other institutions and increased their competitiveness. For example, the University of Northern Iowa (UNI) was one of the first institutions to receive STEM status for its accounting programs. According to Joe Ugrin, head of the accounting department, this certification will make the demand for UNI’s accounting students even greater (Kristi Marchesani, 2023, “The Growth of Stem-Certified Business Programs,” StudyUSA.com, May 5, 2023, https://bit.ly/3wBtDR4).

An accounting department can present data and trends from the job market to demonstrate the increasing demand for accounting professionals with strong STEM skills, including data analytics, cybersecurity knowledge, and technological literacy. It can also include endorsements and recommendations from industry experts and professional alumni who advocate for a STEM-oriented accounting education to meet the current and future demands of the profession.

The department could also argue that the STEM classification aligns with the requirements and criteria of accreditation bodies like the AACSB, as well as professional organizations such as the AICPA, especially those standards concerning technological proficiency and analytical abilities. The AACSB has highlighted the increasing need for business graduates to excel in technology and create digital value, with a growing demand for professionals skilled in both analytics and technology (Vallabh Sambamurthy, “STEM and Business Degrees Strengthen Universities and Communities,” AACSB, April 28, 2020, https://bit.ly/4bRLx2s). To enhance the strength of the petition, a department could also consider linking the alignment of STEM CIP codes with the university’s future strategic objectives, such as achieving quality education, boosting student competence, attracting diverse international students, and promoting an innovative culture.

Welcoming more international students to our accounting programs can be a transformative strategy.

Step 3—STEM CIP Approval. Once the new STEM CIP code is approved, the University Registrar will notify the Department, Dean, Provost’s Office, and other relevant parties. The University Registrar will then ensure that the CIP Code is entered into the Student Information System and update the master list of CIP Codes.

Strategy 2: Another strategic step that could address the need for accountants by increasing the number of international students is to provide them with commitment-based scholarships through collaboration between the AICPA, CPA firms, and universities. As part of the scholarship, participants may be required or incentivized to take at least some sections of the CPA exam during their studies for their smoother transition to the accounting profession. Focusing on regions where quality accounting students are available, these scholarships could represent life-changing opportunities to those who might otherwise be unable to afford them. Graduates from this program could then integrate into the U.S. workforce, filling critical gaps. Furthermore, these scholarships could include internships or job commitments with sponsoring firms, ensuring a practical pathway for students into the accounting profession. This relationship benefits all parties involved: students gain access to quality education and career opportunities, universities attract a wider pool of talent, and the accounting industry mitigates its shortage issue with a steady stream of skilled professionals.

Strategy 3: Incorporating global partnerships into university accounting programs is another strategic move that can significantly lower educational expenses, thereby enhancing the attractiveness of these programs. Consider, for example, a collaboration between a U.S. and a Chinese university which offers a joint degree in accounting; this could result in shared resources and potentially lower tuition fees. This particularly benefits international students, who often face higher education costs abroad. The financial burden is significantly reduced by spending part of their program in their home country, such as Chinese students studying partially in China before completing their degree in the United States. This affordability makes U.S.-based accounting degrees more attractive and feasible for a broader range of international students. Graduates from these joint programs will become well-versed in diverse accounting practices and gain cultural fluency, making them more desirable in the global marketplace. To maximize their reach, universities and the AICPA should engage in international education fairs, use social media for promotion, and host virtual events to promote these programs.

A Transformative Opportunity

The shortage of accountants in the United States presents the profession with a unique challenge and a golden opportunity. Welcoming more international students to our accounting programs can be a transformative strategy. This approach can address the immediate shortfall and enrich the profession, preparing it for a future marked by diversity and global connectivity. International students bring more than just numbers; they are essential for the enduring growth and modernization of accounting in a world more connected than ever.