Minorities in the Accounting Profession

Minorities in the Accounting Profession

By: Tynika Stevens

According to the U.S. Census, there are approximately 100 million ethnic minorities in the United States, and the Bureau estimates that about one in three of U.S. residents are a minority. In addition, the population will continue to increase, and by 2050, minorities will account for nearly half of the U.S. population (U.S. Census, 2009).  Based on this data, there is a high chance that minorities account for a increasing percentage of working in the accounting profession. Today, minorities in the CPA profession account for 8%, consisting of 4% Asian/Pacific Islander, 3% Hispanic, and only 1% African American. There has been a positive turn around in the past few years with minorities only occupying 1% of the CPA profession, which includes African American, Latino, and Asian ethnics. This data above, illustrates how minorities are slowly entering the accounting professions (The CPA Journal, 2009).

The percentage of accounting graduates who are minorities is 22%, consisting of 10% Asian/Pacific Islander, 7% African American, and 5% Hispanic or Latino. According to U.S. News & World Report, City University of New York’s Baruch College has been t he country’s largest and most diverse business school for the last nine years.  More than 600 accounting students graduated in 2007, 25% of the class consisted of African American and Hispanic students. This is not the case for every accredited institution. Previous studies showed minority graduates, particularly African American are not being kept  in the profession of CPAs and ultimately partners or executives. Only 7% graduate, 3% are hired, and 1% becomes a CPA or partner.

NABA is a nationwide membership organization established in 1969 by nine African American professionals who were concerned about the limited numbers of minority accountants participating in the field of accounting, particularly the number of certified accountants.  Since 1969, NABA has been the leader in expanding the influence of minority professionals in the field of finance and accounting. The goals of the association are to promote and develop the professional skills of the members, to encourage and assist minority students in entering the accounting profession, to provide opportunities for members through networking, and to ensure long-term financial stability and provide adequate resources to implement chapter, regional, and programs. Today, through the efforts of NABA, there are now over 200,000 African Americans participating in the field of accounting, of which over 5,000 are CPAs. NABA continues to create opportunities for the purpose of enlarging the pipeline of African Americans into every level of accounting and finance.

ALPFA (Association of Latino Professionals in Finance and Accounting) is a successor of the American of Hispanic Certified Public Accountants association established in 1972. ALPFA creates opportunities, adds values, and builds network opportunities for its members. According to ALPFA’s website, its guiding principles are a commitment to increase opportunities for Latinos, to commit to honesty, integrity and the highest professional and ethical standards, and most importantly, to embrace community service and advocacy.  ALPFA offers scholarships every year to students, in the U.S. or Puerto Rico, who are pursuing undergraduate/graduate degrees.  With 52% of ALPFA’s 11,000 members comprised of students, ALPFA is committed to providing greater access to scholarships in addition to programs and opportunities that will help students transfer into the corporate world. The ALPFA expects to distribute $130,000 in scholarships in 2010 and bring the top scholarship recipients to the ALPFA Annual Convention to network with executives from the top CPA firms (PricewaterhouseCoopers, KPMG, Ernst & Young and Deloitte).

Accountant organizations such as NABA and ALPFA are encouraging young members of all ethnic backgrounds to pursue the CPA profession through their outreach programs and mentoring strategies. The number of minority CPAs are increasing and the retention rate of minorities within the accounting profession is also improving with the assistance of NABA/ ALPFA Statistics have shown that the accounting profession has improved in its recruitment of minorities; however, the number of minority candidates still remains the issue. With so many internships and scholarships offered each year, it still remains a question of why minorities are not attracted to professions within the accounting industry. Questions have arisen relating to early exposure of accounting during pre-collegiate education.