Forces shaping the profession: the four Ps: the CPA profession is thriving. The image of CPAs is incredibly strong with American public and business leaders. Now more than ever, CPAs are in great demand. But the work of maintaining a strong profession is never done.

• Author: Melancon, Barry
• Position: Certified public accountants

During a recent discussion with state CPA society communications professionals, I highlighted four forces shaping the CPA profession's environment today. Dubbed the "Four Ps," they stand for the "pipeline" of accounting school graduates and new CPAs, the "patenting" of tax planning strategies, "private company financial reporting" and "professional responsibility."

The pipeline

One of the profession's most pressing needs is recruiting and training enough new CPAs to replace those reaching their retirement years. In the next 15 years, 75% of current AICPA members will reach or approach retirement age. While firms across the country know all too well the challenges of attracting talent, there is good news in this area: the number of accounting degrees awarded increased 19% between 2000 and 2005, and there was a five-fold increase in the percentage of high school and college students planning to major in accounting.

Yet the shortage of CPAs continues. While accounting firms hired 17% more entry level recruits in 2006 than they did in 2005, the need for CPAs is outstripping the supply. Another problem is that one in six CPAs left his or her firm in 2004--2% more than in 2003.

CPAs, in firms of all sizes as well as in business, industry and government, play a crucial role. They can help young people learn more about the benefits of being a CPA. At work, CPAs can implement mentorship programs and address issues important to the new generation. Resources are available at www.aicpa.org under the "Career Development and Workplace Issues" tab on the left navigation bar.

Tax patents

The patentability of tax strategies is a growing concern among tax practitioners and taxpayers. In 1998, the U.S. Federal Circuit Court of Appeals, in State Street Bank & Trust v. Signature Financial Group, Inc., held that business methods could be patented. Since then, 51 patents for tax strategies have been granted and 83 patent applications for tax strategies are pending as of Feb. 28. The AICPA believes that patents for tax strategies undermine the integrity, fairness and administration of the tax system and are contrary to sound public policy.

The AICPA believes that patents granted for tax strategies:

* Limit taxpayers' ability to fully observe Congress's intended interpretations of tax law

* May cause taxpayers to pay more tax than Congress intended

* Complicate the provision of tax advice by professionals

* Hinder taxpayer compliance

* Mislead taxpayers into believing that a patented strategy is valid under the tax law

* Preclude tax practitioners from challenging the validity of tax strategy patents.

The AICPA has written to the chairs and ranking minority members of the Senate and House...