One of the top discussion points among private equity professionals is the lack of strong finance talent for their portfolio companies. It has driven the rise of consulting firms like Riveron — focused on the Office of the CFO — which have been popular for private equity firms looking to mature their portfolio company finance organizations in preparation for an exit.

Further complicating the issue has been the pipeline of CPAs, which has been dwindling over the years. This is in part due to the intentional actions of the profession more than a decade ago to make it harder and more expensive for young professionals to achieve the CPA designation. As a CPA, I originally applauded the effort as I recognized it would increase the value of the designation. However, I have not seen a more sophisticated talent pool of finance professionals well-equipped for leadership roles. In fact, I have seen more people self-select out of finance roles for a smoother path to other, more lucrative positions.

I applaud the individual states and professional organizations that are permitting an alternative path to the CPA by rewarding those with perhaps the best preparation for a future finance leader — on-the-job experience.

Under a proposal by two national accounting groups, CPA candidates can use an additional year of work experience instead of schoolwork to demonstrate professional and technical skills. That is on top of a bachelor’s degree, a passing grade on the qualifying exam and one year of work. Companies, audit firms, professional groups and some state boards have been looking for ways to make the profession more appealing to students as fewer students graduate with an accounting degree and more workers quit for higher paying, less stressful jobs.

https://www.wsj.com/articles/new-cpa-paths-emerge-as-states-try-to-stem-accountant-shortage-769e78e6?mod=djemCFO