MassCPAs finds DEI problems in accounting profession

The Massachusetts Society of CPAs released a report Tuesday that found widespread problems with diversity, equity, inclusion and belonging in the accounting profession.

The report found that approximately 80% of senior leaders are white and 60% male, while nonwhite and LGBTQ+ representation remains minimal at best. Even though 40% of accounting graduates identify themselves as nonwhite, only 23% of professional staff and 18% of partners are nonwhite, pointing to big diversity gaps in the profession.

There’s a perception gap too. While 68% of accounting leaders believe they foster empowering environments, only 36% of their employees agree. In addition, while 97% of HR leaders believe their organization has improved its diversity, equity, inclusion and belonging, or DEIB, that contrasts dramatically with the experiences of many employees who feel their needs are not being met. 

Women in accounting are still facing obstacles to advancement, such as unfair treatment in recruitment, inequitable access to sponsors and mentors, and gender bias from leaders. Over 60% of the women in accounting who were surveyed by MassCPAs reported experiencing inequities such as unfair compensation and promotion practices. 

At the same time, burnout rates among accountants are alarmingly high, and that’s contributing to a significant amount of attrition in the profession. Long hours and stress during busy periods are cited as some of the main reasons for leaving the profession.

The report stresses the need for accounting organizations to prioritize their DEIB efforts and implement strategic recommendations to bridge the perception gap. Those recommendations include establishing strategic imperatives, fostering inclusive cultures, and revitalizing mentorship programs and employee resource groups. 

“While primarily focused on the United States, our report also considers global trends in our industry and in others, highlighting discrepancies between intentions and realities regarding DEIB,” said MassCPAs president and CEO Zach Donah in a statement. “By prioritizing DEIB and implementing these recommendations, organizations can attract and retain diverse talent, enhance performance, and achieve better business outcomes, ultimately driving meaningful change within the accounting profession.” 

Donah recently told Accounting Today about MassCPAs’ own DEIB efforts. “We’ve had a demonstrated program for diversity, equity, inclusion and belonging for a number of years,” he said. “We’ve really focused around training for our members: general awareness training and also training for their entire organization. Our learning and development team has a robust in-house training program that they bring into firms to help them address some of these cultural challenges in a lot of organizations. What we have found is that the accounting profession lags behind other similarly situated professions.”

The report found that for every 10 senior leaders in accounting, approximately eight are white, six are male and only a few openly identify as LGBTQ+. Around 40% of accounting graduates identify as non-white, while only 23% of professional staff identify as non-white. Among partners, only 18% are non-white. Similar gaps exist for bachelors, masters and doctoral candidates.

About 2% of CPAs at U.S. accounting firms are Black, while approximately 5% of CPAs are Hispanic and Latino. Asians or Pacific Islanders comprise about 14% of CPAs.

Accounting also skews older than other industries (including related professions), with a higher percentage of Gen X and baby boomers. Despite broad gains in gender diversity (with women comprising about 46% of CPAs at U.S. accounting firms), women remain underrepresented at the top levels of the accounting profession.

A study of more than 3,000 current and former U.S. accounting professionals revealed that LGBTQ+ respondents were leaving the profession at higher rates than other historically excluded groups.

Accounting Today and its parent company Arizent that also found DEI problems in accounting and other financial sectors in a report last year.  The Accounting Today and Arizent Research study found almost a fifth of respondents (24%) are indifferent to DEI, and almost a third (30%) think it’s somewhere between “somewhat unimportant” and “completely unimportant.”

“Unfortunately the number of CPAs and the number of partners that are nonwhite has historically been anywhere from 1% to 3%,” said Trevor Williams, an audit partner and director of diversity, equity and inclusion at GRF CPAs & Advisors in Bethesda, Mayland, in a recent interview. “Our profession has a lot of work to do. I think overall the profession has not done that great of a job to really promote all the benefits of being in the profession. As a result, a lot of people say that there is a talent shortage when it comes to those in the pipeline. Not only is there a shortage in the pipeline, there is an untapped market of individuals that are nonwhite. There needs to be greater outreach to attract individuals that are nonwhite to the profession.”