The New Jersey Assembly has passed a bill, supported by the New Jersey Business & Industry Association (NJBIA), to update state licensing requirements for certified public accountants (CPAs). This measure aims to address the current shortage of CPAs affecting numerous businesses in New Jersey that depend on these professionals for tax and financial services.
Bill A-5598, sponsored by Assemblyman Sterley Stanley and Assemblywoman Aura Dunn, received unanimous approval with a 78-0 vote. It now moves to the Senate for further consideration.
The New Jersey Society of Certified Public Accountants (NJCPA) has also backed this legislation. A recent survey conducted by NJCPA found that 66% of 187 businesses reported difficulties in finding accounting talent over the past year. Of those surveyed, 47% indicated that this shortage posed a moderate or high risk to their operations.
New Jersey has seen its CPA workforce decrease from 23,500 in 2019 to 20,500 currently, representing a decline of 12.7%. Nationwide, there has been a similar reduction of 13% in CPA numbers during the same period. Additionally, with 75% of current CPAs nearing retirement within the next 15 years and enrollment declining by 20% over the past decade, concerns about worsening shortages are growing.
In response to these challenges, NJBIA and NJCPA launched an advocacy campaign last year aimed at addressing staffing shortages through legislative solutions.
Presently, CPA candidates in New Jersey must complete at least 150 semester hours—equivalent to a master’s degree—alongside one year of work experience and pass the uniform CPA examination. The new bill proposes allowing candidates to substitute 30 education credits with an additional year of work experience. Thus, college graduates with a bachelor’s degree would need two years of work experience and passing exam scores to obtain licensure.
Althea D. Ford, NJBIA Vice President of Government Affairs, commented on this initiative as "effective collaboration between industry and regulators" providing "a common-sense solution" offering flexibility in licensure pathways.
“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 stated. “We urge the Senate to also pass this important bill and get it to the governor’s desk.”
NJCPA CEO Aiysha (AJ) Johnson discussed staffing challenges within the accounting profession on NJBIA's "Minding Your Business" television show last year. Her discussion with host Bob Considine can be viewed online.
