Grow the ranks: fewer candidates are becoming certified--help turn the tide.

• Position: PROFESSIONALISSUES

While the number of students earning bachelor's degrees in accounting is rising, it's taking longer for them to become certified.

[ILLUSTRATION OMITTED]

In fact, nationally, the number of candidates sitting for the CPA Exam has plunged from about 82,000 in 2003 to only 52,000 in 2004 (the first year of the computerized exam), according to a report from exam administrators AICPA, Prometric and NASBA.

According to the report, the top reason candidates gave for not taking the exam is that they lack the time to prepare.

So, how important is it to your firm that candidates become certified? That question was put to employers and candidates in a recent AICPA survey--and the results were staggering.

When asked, "How important is it to your firm that young employees take the CPA Exam and get certified?," 90 percent of employers said it is "very important," with the other 10 percent saying it's "somewhat important."

But in an alarming contrast, when young employees were asked "How important do you think it is to your firm that you pass the CPA Exam and get certified?" only 47 percent said "very important," with 30 percent saying "somewhat important."

So, what can firms do to bridge this gap and encourage licensure of their young staff?

TIPS FOR FIRMS

It all starts with your firm's culture: communicate the message that becoming a CPA as soon as possible is a core value of your firm. The following are solutions used by numerous major CPA firms to help back up your firm's message.

Incentives -- Entice candidates to get licensed by offering faster advancement after successful exam completion, along with reimbursement for registration, review courses and study materials, or even pay bonuses for passing the exam to cover some of these costs.

Tracking System -- Institute a system to follow employee progress in preparing for, registering and taking the exam. The system can be used as part of an employee's annual review.

Window Policy -- Establish a window of time during which new employees are expected to take the exam.

Vacation Study Time -- Be flexible when employees request vacation time to study, set parameters for employees to study on the job, especially during the off-season, or offer free vacation hours for the day the exam is taken.

Communication -- Communicate your firm's CPA Exam policy to potential hires as a recruiting tool and to new hires through your firm's employee handbook. Also, educate your human resource staff on its role in encouraging...