How to Improve Diversity in Accounting

The accounting industry lacks diversity in many categories including race, ethnicity, gender, and sexual orientation. The Association of International Certified Professional Accountants (AICPA) researched that as of 2018, over 90% of accounting firm partners identify as white. This lack of racial diversity exemplifies a significant diversity gap across the accounting industry.

Some accounting firms began taking the initiative towards hiring and promoting more diverse employees. Accounting firms can improve diversity by offering mentorship programs, advancing recruiting efforts, and enhancing leadership practices.

Each section below provides detailed information on how to improve diversity in accounting. The information provided reflects the limit in data for nonbinary genders, transgender people, sexual orientation, and ability within the accounting industry.

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Diversity of all types is essential to improving the viability of accounting firms. Diversity brings varied perspectives and ideas to decision-making processes and counters exclusive practices that have limited the contributions and advancements of underrepresented populations.

In a recent study by the Association of Accountants and Financial Professionals in Business, only half of respondents shared that they viewed the accounting field as equitable or inclusive. Minority demographics in all areas expressed lower percentages of approval. A lack of equity and inclusion leads minority populations to leave the accounting profession.

According to a 2019 McKinsey report, companies with more gender, ethnic, and cultural diversity more likely experience high profitability. The accounting industry can benefit from increasing its diversity and can offer underrepresented professionals opportunities to bring their experiences and talens to the field.

Welcoming diverse individuals into accounting honors all people’s right to a social, political, and equitable livelihood. Accounting firms benefit from diversity in many significant ways such as increased profitability, improved employee cohesion, and retention of valuable professionals.

Accounting firms seeking to change norms within the industry benefit from inclusivity. Equitable hiring and promotion practices help the accounting industry better reflect the nation’s increasingly diverse population.

With an increasingly diverse United States population, building diversity in accounting would show younger generations that the field represents and welcomes traditionally underrepresented groups. These younger people will one day make up the applicant pool for future accounting positions.

Diverse employees increase connections to diverse clients, creating a more equitable distribution of wealth. By expanding word of mouth and other promotional opportunities, new lines of business develop.

Business also sees enrichment internally. Women uplift other women into leadership roles and support them in taking the initiative. When employees feel valued, they give back to the organization.

Diversity is the equitable inclusion of race, ethnicity, gender, sexual orientation, and levels of developmental and physical ability into a given space. These characteristics lead to a diversity of experiences and thoughts. Minorities encompass a small percentage of a given population or group.

Improving diversity means increasing the number of minority individuals or characteristics. Uplifting diversity within organizations means hiring, retention, and promotion practices reflect changing priorities.

In 2018, the AICPA found that while 42% of accounting graduates identify as non-white, only 30% of new graduate hires identify as non-white. The trend continues with just 16% of CPAs identifying as non-white and only 9% of accounting firm partners identifying as non-white. The displacement of non-white graduates highlights an area where diversity practices require reformation.

In the Association of Accountants and Financial Professionals in Business’ research, 8.9% of accountants and auditors identified as Hispanic or Latino, 8.5% identified as Black or African American, and 12% identified as Asian. The already low percentages significantly decrease when reporting on CFO and partner positions, further highlighting the role individual accounting firms play in inequitable practices that decrease diversity in the industry.

According to the Accounting and Financial Women’s Alliance, women comprise 52% of accounting and consulting firm employees, but only 29% of partner and principal roles. Women continue to make up a significantly lower percentage of leadership positions than men.

Accounting careers offer a worthwhile professional path regardless of gender, race, ethnicity, ability, or sexual orientation. When companies take steps towards improved diversity and inclusion, it shows prospective employees and clients that diversity matters within accounting.

Workplace diversity includes removing opportunities for prejudice and bias in hiring practices. Accountability teams can review decisions through an equity lens, improving not only the hiring process but also promotion practices. An external consultant can support the development and fidelity of these actions.

Require that all employees take part in diversity training and establish a routine for consistent sessions. In addition to learning essential workplace behaviors, everyone can benefit from understanding the established norms and share responsibility for equitable practices.

Consider the following ways to improve diversity in accounting at a single firm and across the industry.