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A decades-old rule requirement that accountants complete 150 college credit hours (five years) as part of the requirements to become licensed — up from 120 hours (four years) — preceded a much starker decline in the number of licensed Black and Hispanic certified public accountants than that seen in the overall CPA population, according to a recent study. On average, during the 1986-2019 period reviewed when all states implemented the 150-hour rule, there was a 26% decline in new minority CPAs and a 13% to 14% decline in new non-minority CPAs, according to Andrew Sutherland, an associate professor of accounting at the MIT Sloan School of Management and one of the authors of “Occupational Licensing and Minority Participation in Professional Labor Markets.” “Licensing in many professions involves costly general education requirements,’ the study states. “Even if such education requirements are developed and enforced in a race-neutral way, they can have disparate effects depending on individuals’ ability to afford college and forego income.” I am CPA/CGA and went through very rigid standards to get my CPA/CGA license including taking 8 courses along with achieving the experience requirement.

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Today we honor the legacies & contributions of J.W. Cromwell Jr., CPA & M.T. Washington, CPA. In 1921, 25 years after the first #CPA certificate was granted in the US, John became the 1st #africanamerican to hold the distinguished designation! Then, in 1939, Mary became the 1st #africanamericanwoman to hold the distinguished designation of #cpa! Two remarkable individuals that paved the way for #inclusionanddiversity within the Accounting Profession. #MoisesGEspinalCPA #smallbusinessaccounting #cpafirm #taxprofessional #taxpreparation #remotecpa

A decades-old rule requirement that accountants complete 150 college credit hours preceded a much starker decline in the number of licensed minority CPAs than that seen in the overall CPA population, according to a recent study from researchers at MIT Sloan School of Management. The study found there was 26% decline in new minority CPAs and a 13% to 14% decline in new non-minority CPAs, according to Andrew Sutherland, an associate professor of accounting at the MIT Sloan and one of the study's authors. #accounting #dei #cpas https://lnkd.in/e-s_VZXA

While those of us in academe have argued, for years, that the 150-rule operates to reduce the number of minority and economically disadvantaged young people entering into the profession, the AICPA has argued the opposite, suggesting that the rule might increase enrollments. Their view, as quoted by Dr. Sutherland and his co-authors in their paper, “Occupational Licensing and Minority Participation in Professional Labor Markets,” is that “Education requirements have not created entry barriers in other professions that require graduate education… Minority students who plan to go on to graduate education will now be attracted to accounting” (AICPA 2020). Dr. Sutherland and his co-authors' paper (discussed below and available for download from SSRN: https://lnkd.in/eyVgffg5) supports the view that the 150-rule, with its inherent cost, operates against the goal of increasing minority representation in the accounting profession. Additionally, the authors note that, based on their examination of job postings and exam passing patterns, although the rule might act as a positive signal to potential employers, it does not appear to have increased "CPA quality" post-enactment.

Neurodiversity in Accounting: A Career Match by Tori Smith In the fall issue of The Washington CPA magazine, Tori Smith highlights the benefits of including a wider range of neurodiverse individuals in the accounting profession. Learn more in the online version of the magazine here >> https://hubs.li/Q025J1Jn0 Join the conversation on DEI in the accounting profession by joining the WSCPA's DEI Resource Group >> https://hubs.li/Q025J9-S0

Maryland Society of Accounting & Tax Professionals, Inc. featured me in the volunteer spotlight! How exciting just before the year end to see yourself in an email?!!🤩 I really don't see the volunteer activities as work, but opportunities to meet more professionals, learn more about the Society, and gain new skills in the process. I recall receiving the email to answer a few questions about myself & I DO read; Many testimonies and cases for work, things I am learning about my business, and I've read the BEC section of the CPA exam four times this year. (lots of reading 😅) #Futurecpastruggles #THANKSMSATP

Love this from NYSSCPA - The New York State Society of CPAs President Kevin O'Leary, CPA about the pipeline. "We talk so much about pipeline, and it's not going to stop now. This is the time to get serious about promoting the value of becoming a CPA. Meet with students, go to schools, talk to the people you know. Stop telling the "I walked up hill both ways" stories. You may have survived, but is that the best we can hope for? This is a good, well-paying profession that brought us all here today. Think about the friends and colleagues you've made and the opportunities that have been presented to you. We all must acknowledge that the workplace has changed, and we all need to adapt to ensure there are future CPAs coming up behind us. Tell people the positive aspects." Visit NYSSCPA website to read the full article: https://lnkd.in/geVy96AP #NYSSCPA #TheTrustedProfessional #CPA #pipeline

Over my career as an accountant, one of the major items i have been concerned about is the lack of minority CPA's in the profession. I wrote an article over 30 years ago stating that African Americans were less than 5% of all CPA's in the country. While i do not have the current number, the percentage has not increased significantly during this time. If accounting is the language of business, one way to level the playing field so to speak is an increase in this percentage. Removing barriers such as the 150 hour requirement would help in that regard because minority accountants are less likely to complete the fifth year of study. There is a real good chance I personally would not have done this in my career. Since studies have now shown this fifth year has not proven to increase the professionalism of new accountants it is time to seriously consider removing this requirement. There already is an overall shortage of new CPA's that is growing each year. Work experience and continuing professional education will probably achieve the same if not better outcomes in promoting the profession. If barriers can be removed, this is a step to reducing the shortage. It is definitely an issue that needs to be considered ASAP before the accounting shortage becomes even worse. #CPA #cpas #blackaccountants #cpaexam #minorityaccountants

Are you prepared for the potential tax incentive changes the upcoming election may bring? What does the new Form 6765 mean for you and/or your clients? How will PWA be viewed? Join ABGI's webinar to gain essential insights into the latest developments in tax incentives, ensuring your strategies remain robust and compliant. Key Topics Include: -Washington Update -Prevailing Wage and Apprenticeship Final Guidelines -The New 6765 Register here: https://lnkd.in/geHgDEeu