Word of Advice

By Marton Medina  |  May 12, 2025

The choices today's retiring CPAs make will shape communities for decades to come.

The CPA Profession Is at a Tipping Point

Imagine it’s the year 2030. In some communities, small businesses thrive because they have trusted financial guides who help them grow and make smart decisions year-round. In others, families and business owners are left scrambling, with no local CPA to turn to—forced to rely on impersonal, national firms or DIY software.

Which of these futures becomes reality depends largely on the decisions CPAs make right now. The next five years are a make-or-break moment for the profession. And for CPAs nearing retirement, those decisions are deeply personal. Your actions today will determine whether your firm becomes part of the solution—or part of the decline.

The Forces Driving Massive Change

Three unstoppable trends are converging to reshape the profession. The first is the retirement surge. Nearly 75% of CPAs will reach retirement eligibility within the next 15 years, according to multiple industry studies (Controllers Council, 2023). Thousands of firms will change hands—or close entirely—in the coming decade. Many small practices have no succession plan, leaving clients vulnerable and firm value evaporating overnight.

A second trend is the shrinking talent pipeline. New CPA candidates are declining dramatically: first-time CPA exam candidates dropped 33% from 2016 to 2021 (CPA Journal, 2023). Fewer young accountants mean fewer potential successors to buy or inherit firms. AICPA calls this a “succession bottleneck”, one of the most urgent challenges facing the profession.

The third trend is the evolving demands of clients and advancements in technology. Compliance work like tax prep and bookkeeping is being automated by AI and cloud-based tools. Clients now expect year-round strategic advice, not just tax-season services. Firms stuck in the old seasonal model will struggle to stay relevant.

Two Possible Futures for the Profession

These trends are like tectonic plates shifting beneath the profession. Where they settle depends on the choices made today.

Future A: Fragmentation and Decline

Thousands of small firms quietly close when owners retire. Local communities lose access to trusted CPAs. Compliance becomes a commodity controlled by large national players and faceless software companies. The CPA’s role as a trusted guide and advisor fades away.

Future B: Renewal and Legacy

Retiring CPAs mentor successors, passing down wisdom and client relationships. Firms modernize, shifting to advisory-first models with recurring revenue. CPAs become year-round financial guides who help families and businesses thrive. Communities benefit from stable, local access to financial expertise.

The difference between these futures comes down to whether CPAs nearing retirement choose to lead the transition or let change happen to them.

Why the Next 5 Years Matter Most

The timeline for action is short. Here’s why. Demographics don’t wait. Every year, more CPAs retire without a plan, accelerating firm closures. The technology adoption curve of AI and automation is advancing fast. Firms that fail to adapt will be obsolete by the end of the decade. Client loyalty is fragile. Younger business owners expect modern, tech-enabled advisory services. If they don’t get them from you, they’ll go elsewhere. Waiting even two or three years to act can mean the difference between a thriving transition and a last-minute fire sale—or outright shutdown.

The Leadership Role of Retiring CPAs

Many retiring CPAs assume their role is to quietly exit the stage. In reality, you are the gatekeeper of the profession’s future. Your decisions about how you transition will determine whether your clients have continuity of service, whether younger CPAs are inspired—or overwhelmed—by inheriting your practice, and whether your firm remains a cornerstone of your community or disappears. Leadership at this stage doesn’t mean taking on more work. It means choosing a path that leaves your firm stronger than you found it.

4 Practical Steps to Shape the Future

Here’s how CPAs nearing retirement can actively create a positive legacy for the profession:

Step 1: Build a Transferable Business

Document processes so the firm isn’t dependent on you. Adopt cloud-based systems and automation to increase efficiency. And diversify revenue with year-round advisory services.

Step 2: Identify and Mentor Successors

Start conversations early—don’t wait until the last year. Consider a phased mentorship model, where you remain involved during the transition. And look for successors who are eager to learn business leadership, not just accounting.

Step 3: Explore Innovative Transition Models

Traditional buyouts are no longer the only option. Franchising, licensing, and hybrid models can provide structure and support while protecting your clients and team. These models also attract younger CPAs by reducing their risk.

Step 4: Partner With Business Experts

Your expertise is accounting and client care. Modern firm growth requires marketing, operations, and strategy that you don’t need to master alone. By partnering with business leaders, you ensure your firm thrives into the next era.

What This Means for Your Community

This isn’t just about you or your firm. It’s about the ripple effects your decision will have. Local businesses have the ability to grow stronger and more resilient when working with a trusted CPA. Families can gain financial clarity and peace of mind. Options for young accountants are widened if mentorship and a clear path to leadership can be found. The profession not only retains its role as a pillar of trust and guidance but also expands and enhances it. When CPAs choose to lead their exits thoughtfully, entire communities benefit.

Writing the Next Chapter Together

You don’t have to face this transition alone. At Money CFO®, we believe the future of the profession depends on partnerships between retiring CPAs, ambitious successors, and proven business systems. You bring decades of wisdom, trust, and expertise. We bring systems, marketing, and strategy to modernize your firm. Together, we create a thriving business that endures for the next generation.

Be part of the future. The next five years will decide whether the CPA profession declines or thrives. Your role in that decision is critical. Leaders like you will shape what comes next. The question is: will you step forward, or step aside?

Sources

• Controllers Council: Accounting Crisis Report (2023)
• CPA Journal: The Accounting Profession Is in Crisis (2023)
• Kiplinger: The CPA Shortage Problem (2024)
• AICPA/PCPS: Succession Planning Survey (2023)

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