What’s the Value of Professional Licensing?

Three more states are considering allowing out of state accounting firms to provide services without the need for the firms to register or obtain state licenses.

Already 30 states have CPA firm mobility laws, allowing them to practice without having to provide notice to each state’s accountancy board. That puts firms on the same footing as individual CPAs who can practice in all 50 states without having to be licensed in each.

“A big priority for the AICPA now is firm mobility, which ensures firms can also work from state-to-state,” said Marta Zaniewski, AICPA vice president, state regulatory & legislative affairs. “It’s equally important that clients and the public have access to various firms’ subject-matter expertise and services that may or may not be available to them in their home jurisdictions.”

The Association of International Certified Public Accountants in partnership with the National Association of State Boards of Accountancy is working collaboratively with the legislatures of Alaska, Maine and Oklahoma where firm mobility bills have been introduced.

“We try to push forward the UAA model everywhere, but every state will do it their own way, and there are probably slight differences in different jurisdictions,” Zaniewski told The Journal of Accountancy.

The Uniform Accountancy Act (UAA) was developed by the AICPA as model legislation for all states. The 30 states that now have firm mobility laws in place follow the broad strokes of the UAA, though most have made minor adjustments to fit their individual needs.

Licensing of professionals and occupations has itself come under scrutiny in recent years, with several states considering loosening requirements. To address the lack of hard data about the value of licensing, the Alliance for Responsible Professional Licensing (ARPL) last year commissioned a study of the impact of professional and occupational licensing.

Among the key findings in the recently published report is that licensing of the highly skilled professions – lawyers, doctors, engineers, accountants and the like – improve earnings overall, but have a better than average benefit for women and minorities.

Licensing value chart.jpg

Licensing, the Oxford Economics research firm found:

  1. Positively contributes to narrowing the gender-driven wage gap giving men an average 5.6% boost and 7.4% for women;
  2. Female engineers, surveyors, architects, landscape architects, and CPAs can expect a 6.1% hourly wage increase on average after becoming licensed in their field.
  3. Minority engineers, surveyors, architects, landscape architects, and CPAs can expect an 8.1% hourly wage increase on average after becoming licensed in their field.

Observed Alice Gambarin, a senior economist at Oxford Economics, “[The] findings suggest licensing is an important economic tool for professionals.”

Photo by Hunters Race on Unsplash

How Wellness Initiatives Can Strengthen Your Workforce
General Interest Green Key News Leadership + Management Worklife

How Wellness Initiatives Can Strengthen Your Workforce

#WeAreGreenKey: Spotlight on Alexis Schumacher
Accounting + Finance General Interest Green Key News Worklife

#WeAreGreenKey: Spotlight on Alexis Schumacher

Women in Leadership at GKR
General Interest Green Key News Leadership + Management Worklife

Women in Leadership at GKR

Spain Becomes First European Country to Offer Paid Menstrual Leave
General Interest Green Key News Human Resources Worklife

Spain Becomes First European Country to Offer Paid Menstrual Leave

Green Key Unlocked: Benefits of Travel Nursing
General Interest Green Key News Healthcare Worklife

Green Key Unlocked: Benefits of Travel Nursing

How to Maintain Culture in Remote Environments
Architecture + Engineering General Interest Green Key News Worklife

How to Maintain Culture in Remote Environments

Tips to Strengthen Time Management
General Interest Green Key News Leadership + Management Worklife

Tips to Strengthen Time Management

#WeAreGreenKey: Spotlight on Katie Kressel
General Interest Green Key News Human Resources Leadership + Management Professional Support Worklife

#WeAreGreenKey: Spotlight on Katie Kressel

Workplace Trends 2023
General Interest Green Key News Human Resources Leadership + Management Worklife

Workplace Trends 2023

#WeAreGreenKey: Spotlight on Jason Kien
Accounting + Finance General Interest Green Key News Leadership + Management Worklife

#WeAreGreenKey: Spotlight on Jason Kien

How to Use ChatGPT to Build a Resume
General Interest Green Key News Information Technology Marketing Technology Worklife

How to Use ChatGPT to Build a Resume

Green Key Unlocked: Data Roles in IT
General Interest Green Key News Information Technology Worklife

Green Key Unlocked: Data Roles in IT

The New Marketing & Sales Team
Marketing Technology

The New Marketing & Sales Team

#WeAreGreenKey: Spotlight on Matt Schirano
General Interest Green Key News Information Technology Leadership + Management Worklife

#WeAreGreenKey: Spotlight on Matt Schirano

Green Key Unlocked: The Effect of Tech Layoffs
General Interest Green Key News Information Technology Leadership + Management Worklife

Green Key Unlocked: The Effect of Tech Layoffs

How to Prepare for a Recruiter Interview with a Staffing Agency
General Interest Green Key News Human Resources Leadership + Management Worklife

How to Prepare for a Recruiter Interview with a Staffing Agency

5 Ways to Make Your Job More Meaningful
General Interest Green Key News Worklife

5 Ways to Make Your Job More Meaningful

Minimum Wage Increases in 2023
Accounting + Finance Architecture + Engineering Financial Services General Interest Green Key News Healthcare Human Resources Information Technology Leadership + Management Legal Support Marketing Technology Pharma Professional Support Worklife

Minimum Wage Increases in 2023

2023 Recruitment Trends
General Interest Green Key News Human Resources Leadership + Management Worklife

2023 Recruitment Trends

#WeAreGreenKey: Spotlight on Carissa Iacona
General Interest Green Key News Marketing Technology Worklife

#WeAreGreenKey: Spotlight on Carissa Iacona

Latest Blog Posts
View All Posts
How Wellness Initiatives Can Strengthen Your Workforce

How Wellness Initiatives Can Strengthen Your Workforce

Establishing an inclusive culture and focusing on employee health can boost productivity, encourage teamwork, and increase better communication.
Read More
#WeAreGreenKey: Spotlight on Alexis Schumacher

#WeAreGreenKey: Spotlight on Alexis Schumacher

Her natural ability to communicate, along with some professional experience in public relations and outreach, has allowed her to flourish...
Read More
Women in Leadership at GKR

Women in Leadership at GKR

Although being a woman in a leadership role comes with its challenges, those at Green Key also note the feelings...
Read More