There’s been a lot of movement lately on the “P” word related to the future of accounting—pipeline. Along with the National Pipeline Advisory Group releasing final recommendations to tackle the accounting talent shortage, the California Board of Accountancy also has put forward alternative paths to licensure to make the journey toward licensure more accessible and affordable. 

With the backdrop, CalCPA President & CEO Denise LeDuc Froemming recently sat down with CBA Executive Officer Dominic Franzella in an episode of the CBA’s Accounting for California podcast to discuss the legislative proposals approved by the CBA aimed at enhancing CPA licensure requirements and modernizing mobility within California, and how they fit in with the Exposure Drafts released by NASBA & AICPA.

Responding to a National Talent Shortage

The accounting profession faces a critical talent shortage, both nationally and in California. Froemming points to two primary factors driving this trend: retirement among seasoned CPAs and a declining number of accounting graduates.

"Seventy-five percent of current CPAs are expected to retire within the next 15 years," she noted. Compounding the problem, between 2016 and 2022, the number of new accounting graduates fell by 133 percent, and the number of candidates taking the CPA exam dropped by 37 percent. This decline in new talent creates a pressing need to adjust licensure pathways and requirements to make the CPA profession more accessible while upholding standards for public protection. 

A New Pathway to Licensure

To address these challenges, the CBA’s recently proposed updates focus on enhancing flexibility in CPA licensure through its SURE CPA Project, an initiative aimed at creating a streamlined and adaptable framework. Traditionally, the CPA pathway has required a stringent 150 semester units and extensive experience requirements, which may not align with evolving educational and career trends. In response, the CBA’s new proposal redefines educational requirements, prioritizing a bachelor's or master’s degree in accounting rather than focusing strictly on semester units.

Franzella explained that the proposal aims to create two distinct educational pathways: one allowing for a master’s degree in accounting, and the other a focused bachelor’s degree in the field. The proposal also adjusts experience requirements. For example, candidates with a bachelor’s degree in accounting would need to complete two years of relevant experience, whereas master’s degree holders could substitute a year and meet the experience requirement within one year.

This approach, he noted, “emphasizes competency and practical knowledge over traditional academic benchmarks,” a shift that aligns with national discussions on alternative licensure pathways.

Modernizing Mobility Requirements

Another focal point of the discussion was the importance of mobility for CPAs. As businesses increasingly operate across state lines, California aims to adapt its CPA licensing to support professionals who move frequently or work in multiple states.

Franzella explained that these updates will help align California’s licensure requirements with national mobility standards while maintaining robust consumer protection measures. “This approach allows us to be more dynamic, responsive, and relevant to the changing business environment,” he stated.

Supporting Public Protection and Professional Standards

Both Franzella and Froemming emphasized that public protection remains a priority, even as the state modernizes CPA requirements. To that end, the CPA Exam will continue to serve as a rigorous standard that all candidates must meet, regardless of the new pathways.

According to Froemming, maintaining high standards is crucial for public trust and for the profession’s integrity, especially as technology transforms how CPAs provide services. “We need that professional skepticism and high-level training in the marketplace,” she said, adding that CalCPA fully supports CBA’s efforts to create a balanced framework that meets both industry and public expectations.

Listening to Stakeholders

This initiative has involved extensive collaboration and feedback from a range of stakeholders, including the National Association of State Boards of Accountancy (NASBA), AICPA, CalCPA and other state boards of accountancy. Town halls and outreach efforts provided insight from current professionals and helped guide CBA toward reforms that balance educational rigor with market demands.

Franzella underscored that adaptability is key, noting, “Our goal is to build a foundation that allows us to be responsive to industry changes without compromising consumer protection.” For instance, the legislative proposal includes provisions for potential future adjustments, which will allow CBA to make necessary modifications without requiring continual legislative approval. “This flexibility will enable us to keep pace with a rapidly evolving profession,” he said.

Moving Forward

CBA’s proposed changes reflect a forward-thinking approach to a profession facing significant transformation. As new educational and licensure pathways become available, the CBA and CalCPA aim to address the profession’s talent shortage and make the CPA profession more accessible to a wider range of candidates. While these changes signal a shift, they also underscore the continued importance of public protection and adherence to rigorous standards.

In the coming months, CBA will work closely with legislative bodies, academic institutions, CalCPA and other stakeholders to finalize and implement these reforms. For aspiring CPAs and the firms that employ them, this modernization represents a crucial step toward a more adaptable, inclusive, and resilient accounting workforce.

To learn more about these developments and listen to the full conversation, tune in to the Accounting for California podcast.