The Assembly has approved an NJBIA-supported bill that would modernize state licensing requirements for certified public accountants to remedy the CPAs shortage now impacting many New Jersey businesses who rely on them for tax preparation and other financial services.
Bill A-5598, sponsored by Assemblyman Sterley Stanley (D-18) and Assemblywoman Aura Dunn (R-25), was approved 78-0 on Thursday and now advances to the Senate for consideration.
According to the New Jersey Society of Certified Public Accountants, which also supported the legislation, 66% of 187 businesses who responded to a recent NJCPA survey reported having difficulty finding accounting talent over the past 12 months. Of those companies, 47% said this has posed a moderate or high risk to their operations.
The number of CPAs in New Jersey has dropped from 23,500 in 2019 to 20,500 today, a decrease of 12.7%. Nationwide, the ranks of CPAs similarly have shrunk by 13% over the same period. Meanwhile, 75% of CPAs working today are within 15 years of retirement and with enrollment down 20% in the past decade, the workforce shortage is on course to get worse.
Last year, NJBIA partnered with NJCPA on an initiative to create a long-term advocacy campaign to meet the talent pipeline shortage that included a push for legislative solutions that address the profession’s staffing shortages.
Currently, to obtain a CPA license in New Jersey, candidates must have at least 150 semester hours – the equivalent to a master's degree – plus one year of work experience and a passing score on the uniform CPA examination. Under the bill, candidates could substitute 30 education credits for an additional year of work experience, meaning college graduates with a bachelor's degree would need to work two years and pass the exam to become a licensed CPA.
NJBIA Vice President of Government Affairs Althea D. Ford said this initiative reflects effective collaboration between industry and regulators to implement a common-sense solution that offers flexibility through an additional pathway to licensure.
“Reducing barriers to licensure is an important first step in attracting more professionals to the field and ensuring New Jersey businesses have access to the CPA professionals they need,” Ford said. “We urge the Senate to also pass this important bill and get it to the governor’s desk.”
NJCPA CEO Aiysha (AJ) Johnson spoke about the staffing challenges facing the accounting profession, and her organization’s partnership with NJBIA to advance solutions, on an episode of NJBIA’s “Minding Your Business” television show last year. Go here to view a video of Johnson’s discussion with host Bob Considine.
