When I was in college and didn't know what to do with my life, my father gave me career advice to become a CPA. why?
“Because,” he said. “People always need to pay their taxes. They always need financial advice. If you're a certified public accountant, you can always hang a shingle or put food on the table.”
That's good advice and still useful. This is very meaningful and is the same advice I gave my children when they were the same age and similarly anxious about their futures. They don't have to become a CPA (some have become CPAs). However, they must become a state-licensed professional. This is the best job security in history.
State licensing boards have come under intense scrutiny this year. A Cato Institute report accused these boards of overextending their powers, and efforts are being made this year to rein in their powers. Some of these arguments are not without merit. And I think this system can be improved in many ways. In the meantime, my advice remains the same. It's about getting a license. Despite arguments to the contrary, state licensing is a powerful employment protection measure.
Become a qualified cosmetologist, pharmacist, engineer, cosmetologist, nurse or landscaper. Take advantage of the data construction boom and get licensed for construction trades like electrical, plumbing, home improvement, fire inspection, and more.
These jobs will never be replaced by technology. AI-based tools and robotics can help improve productivity and ensure that more dangerous tasks can be performed. However, it must be operated by a qualified professional.
And it's important that that license is government-issued and not a certificate issued by a Podunk university or a company that you basically pay a fee for. Having a state license means you have attended an educational program and taken an exam to prove your competency. Many professions like mine require continuing education requirements to be met annually. All of these professions are represented by countless associations, groups, and organizations that support their members with education, resources, guidance, job connections, and even health care.
Earning a professional certification will ensure that you get a higher-paying job than other applicants without the certification. It brings credibility. It shows commitment. This does not guarantee you a job, but it serves as proof that you are competent at your job and have the discipline to obtain your license.
In the past, professionals had to pay someone to work as an apprentice to learn their trade. Now the state provides that service. And in many cases, the requirements are even more stringent. For example, to obtain a CPA license in Pennsylvania, in addition to earning a college degree, one had to pass an exam and work in a public accounting job for two years. That's why some vocational schools are reporting a 35% or more increase in enrollment since 2020. This is why state licensing has increased by 30% over the past few decades, driven not only by fee income but also by demand from consumers to work with people who have gone through the vetting process.
Obtaining a state license will not only help you get a job, but it will also allow you to start your own business if you wish. That's why the Wall Street Journal reports that private equity firms are buying up home services such as HVAC (heating, ventilation, and air conditioning), plumbing, and electrical companies, turning low-level contractors into millionaires.
We pity the unqualified professionals, customer service agents, software developers, marketing and accounting staff members working in companies, many of whom will be replaced by AI in the coming years.
In the coming years, AI will replace many of the jobs that many CPAs currently perform. The software competently conducts research, prepares tax returns, analyzes financial statements, and makes financial planning recommendations. But these are just things that make smart people in my profession even smarter. As with any trading, there are many things we do that bots could never do. we advise. we comfort. We will evaluate it. we communicate. And the best ones will become experts in many AI tools that clients don't have the time or inclination to learn.
These clients assume that their experts and advisors are leveraging technology to do their jobs, just as they assume that our contractors are using modern tools to do their jobs faster and better. And they would be right. The coming technology boom is about to start a boom of people doing things with their hands and minds. And the value of receiving state approval will only increase.
My father didn't always get it right. But on this, his opinion has more validity than ever.
