As Huntsville continues its rapid expansion, the city’s Certified Public Accountants are feeling the pressure.

The growth has increased the demand for accounting services, yet according to several Huntsville-area CPAs, the number of CPAs in the area is not keeping pace. Industry experts say this gap is driven by a combination of veteran accountants retiring and a declining number of students pursuing careers in accounting.

“Huntsville has grown tremendously over the last decade, yet the number of CPAs seems to be decreasing here,” said Jeff Brown, CPA, CFE, of Henry & Brown Certified Public Accountants. “Several older CPAs have retired and sold or closed their businesses, but they are not being replaced quickly enough.”

Brown has attempted to recruit CPAs to Huntsville but finds that many professionals are drawn to larger cities like Nashville or Atlanta, unaware of the opportunities in North Alabama.

“Fewer people seem to be going into accounting because the degree sometimes takes longer, or they do not want to work the busy season schedule,” Brown said.

The Struggles of Recruitment and Retention

The struggle to attract and retain accountants is not unique to Huntsville—it’s part of a national trend.

According to the Association of International Certified Professional Accountants, the number of CPAs in the U.S. has remained stagnant for years, with the profession peaking in 2012 at 1.28 million accountants. While numbers briefly declined in 2013, they recovered by 2019 but have since plateaued.

Meanwhile, fewer people are sitting for the CPA exam, with candidate numbers dropping 7% between 2017 and 2018, and university enrollments in accounting programs declining by 4% from 2016 to 2019. This ongoing trend contributes to the talent shortage, making it harder for businesses to find qualified accountants.

Greg Carnes, PhD and the Dean of the Sanders College of Business and Technology at the University of North Alabama, said universities across the nation have seen a decline in accounting enrollments over the last decade, although this decline has recently stabilized and enrollments were up slightly last year.

While UNA has not experienced a decline in accounting majors, Carnes said the national decline is concerning. “While it is difficult to pinpoint the cause of the decline, it is partly due to the growth in demand for data analytics majors, and some students have chosen data analytics as a major rather than accounting,” Carnes said.

Aaron Pennington, CPA, President and Owner of Pennington & Associates CPA, believes traditional CPA firm models may be part of the problem.

“If you listen to the AICPA and state society, they say we have a shortage of CPAs, but they focus on the wrong reasons,” Pennington said. “The reality is the work isn’t glamorous, and typical public accounting firms work their staff to the bone, so students don’t want to be a part of it. This recent trend of CPA firms selling out to private equity, which removes the only real draw for new employees—making partner one day—only makes the problem worse.”

Paul Lindgren, CPA, of Honeycomb CPAs & Advisors, points to two additional factors hindering industry growth: the diversion of young talent and competition with private industry. Many young professionals interested in accounting are being steered away from traditional CPA roles into niche specialties, leaving small businesses underserved.

“In Huntsville, very few accountants are willing to work in CPA firms over tax season when they can take corporate roles in Research Park and get paid 20 percent more,” without the grueling hours, Lindgren said.

A Changing Industry Demands New Approaches

To counteract these trends, firms like Honeycomb CPAs & Advisors are embracing new technology and integrating Artificial Intelligence tools to improve efficiency and attract new talent.

“It’s been the model of the CPA practice to be hierarchical, like the legal profession,” said Honeycomb’s Brad Garland, CPA. “You start small and work your way up to be a partner someday. But that whole model is shifting.”

If CPAs are going to thrive in this environment, Garland said, they have to completely change their business model. As older accountants retire and demand for services continues to grow, Huntsville firms must adapt.

“There’s a lot of young CPAs right now who are probably pretty disheartened with the direction the industry is taking now that private equity is starting to dip its hand into our profession,” Garland explained. “It really is all about attracting new talent, encouraging their growth, and meeting the lack of supply of CPAs.”

Growth and New Developments in Huntsville Accounting

UNA’s Carnes agreed that Huntsville’s rapid growth in recent years has significantly increased the demand for the services of CPAs and noted that several new CPA firms have entered the Huntsville market. Notable recent developments include:

Pennington & Associates CPA acquired Huntsville-based Cyntax, founded in 2005 by Cindy Hunt, EA.
Aldridge Borden expanded into Huntsville in January through a strategic partnership with LeCroy CPA Group and Mercer & Associates.
Strawn Sanderson was created by a partnership between Will Strawn, CPA, and Terry Sanderson, CPA.
Honeycomb CPAs & Advisors was formed in 2024 by Brad Garland, CPA, Paul Lindgren, CPA, and Pete Shinkunas, CPA.

While Huntsville’s booming economy presents challenges for the local accounting industry, it also creates opportunities for firms willing to innovate, embrace new technologies, and rethink traditional CPA firm structures.