In episode 158 of the Woodard Report Podcast, Heather Satterley welcomed longtime industry voice David Leary for a wide-ranging conversation on where the accounting profession has been and where it is headed next.
Leary, co-host of The Accounting Podcast and Co-founder and COO of Earmark, reflected on how much the industry has changed since the early days of cloud adoption, noting that many of today’s conversations have been building for years.
Looking back on early conferences, he recalled how momentum shifted when cloud accounting became mainstream, saying, “That’s where things like cloud really tipped.” What once felt experimental is now foundational, and the profession is again standing at a transition point.
One of the most consequential shifts discussed was the unraveling of the 150-hour education requirement for CPA licensure. For years, the rule created a barrier that discouraged capable candidates from entering the profession. Leary emphasized that the rule itself did not create the talent shortage but amplified it by raising the cost and time required to qualify.
As states began introducing alternative pathways, momentum accelerated. “We did not create the destruction of the 150-hour rule,” Leary said. “All we did was give it a voice.” Since then, more states have adopted options allowing candidates to qualify with a bachelor’s degree and experience, rather than requiring a fifth year of education.
Early indicators suggest the impact is already measurable. Accounting enrollment is rising, reinforcing the idea that access matters. As Leary put it, “This is a barrier to entry – 100%,” and removing it is bringing students back.
The conversation also highlighted a long standing disconnect between academic training and real world accounting work. While foundational theory remains essential, many graduates arrive without practical experience using modern systems.
Leary shared that he had hired accounting graduates who struggled with basic tasks, despite strong academic credentials. “She never saw QuickBooks until she worked for me,” he said, describing how even fundamental concepts like reconciliation were unfamiliar in practice.
This gap is prompting change. Universities, vendors, and professional organizations are increasingly blending theory with hands-on training to better prepare students for the work they will actually do.
Artificial intelligence was another major theme, approached with pragmatism rather than hype. While AI is often framed as an existential threat, Leary argued the reality is more nuanced. “Matching a bank feed is not bookkeeping,” he said, pushing back on claims that automation alone will replace professional judgment.
Instead, AI is revealing which firms lack strong processes. Firms without documented workflows or quality controls struggle most with adoption, while those with solid foundations can automate narrow tasks effectively.
He also challenged the assumption that AI will handle compliance while humans move entirely into advisory roles. In his view, AI excels at summarizing and synthesizing data, while humans remain essential for accuracy, verification, and accountability.
The conversation also turned to private equity’s expanding role in the accounting profession and the complications that can come with it. Leary pointed to recent acquisitions as examples of how ownership structures can introduce incentives that sit uncomfortably alongside professional responsibilities. In several cases, investment firms have acquired accounting practices while also holding stakes in technology companies that those firms rely on.
Leary raised concerns about what happens when those relationships begin to shape firm behavior. If an accounting firm is encouraged or required to use specific tools due to ownership ties, it can create pressure that extends beyond operational efficiency. “That is not okay,” he said, reacting to situations where investment interests influence recommendations made to clients.
He also noted that these dynamics are different from other industries. While vertical integration may be common in technology or retail, accounting carries additional expectations around independence, especially when firms provide assurance or advisory services. The issue is not growth or investment itself, but whether financial incentives begin to override professional judgment.
As private equity continues to move into the space, Leary suggested that accountants and firm leaders will need to pay closer attention to how these relationships are structured and disclosed. Understanding who owns what and how those connections affect decision-making is becoming part of the broader professional landscape.
Despite the challenges, the tone of the conversation remained optimistic. Barriers to entry are falling, technology is evolving rapidly, and firms willing to adapt are finding new opportunities.
The profession is not disappearing. It is changing. As this episode made clear, the firms and professionals who stay curious, build strong foundations, and engage thoughtfully with change are best positioned for what comes next.
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This article was written with the assistance of AI and edited by a human.