Category: Black History Month

According to the American Institute of CPAs (AICPA), only 1% of CPAs in the United States identify as black or African American. This number has improved little over the century since America saw its first black CPA, whereas the percentage of Asian and Hispanic CPAs has managed to grow somewhat to 12% and 7%.

Perhaps the most concerning aspect of the lack of diversity is how the number of black accountants drops further at each level. According to the 2017 AICPA demographic report, there were 9% of students enrolled in accounting programs, 4% of new hires in firms, and—as mentioned—the 1% who are CPAs. It is clear, then, that the profession struggles largely with retention rates of underrepresented groups.

Increasing diversity in the CPA profession is a vital goal that can be achieved through various strategies. Below are some ways we can help promote diversity:

 

Mentorship & Sponsorship Programs

Mentorship and sponsorship programs provide underrepresented groups with guidance, support, and opportunities for advancement within the profession.

 

Recruitment & Retention Programs

Firms can focus on recruiting and retaining diverse candidates by building relationships with colleges and universities with diverse student populations and creating inclusive work environments.

 

Professional Development Opportunities

Providing professional development opportunities such as training, conferences, and networking events catering to diverse groups can help increase their professional representation.

 

Increased Visibility

Increasing the visibility of diverse role models in the profession can inspire others and help to break down barriers. This can be achieved by promoting diverse speakers at events, featuring diverse professionals in marketing materials, and celebrating the accomplishments of diverse individuals.

 

Addressing Unconscious Bias

Firms can address unconscious bias by training staff to identify and mitigate it. This can create a more inclusive and welcoming workplace for all professionals.

 

Industry Collaboration

Collaboration among industry organizations can help to promote diversity in the CPA profession. This can involve sharing best practices, developing joint initiatives, and working together to promote diversity and inclusion.

John W. Cromwell, Jr. became the first black CPA in America in 1921; however, it wasn’t until over three decades later that Maryland would see its first black CPA: Benjamin L. King.

Born and raised in Washington, D.C., King graduated from Dunbar High School and went on to obtain his bachelor’s degree in accounting from Virginia State College in 1949. Soon after, he served during the Korean War in the Army Audit Agency until 1952. After returning home, he continued his education by taking graduate accounting classes at American University. Doing so opened the possibility to sit for the CPA exam in D.C.; however, he needed to gain two years’ work experience first.

D.C. was full of white-owned firms who wouldn’t hire a black accountant, even despite King’s offers to work for free. When he did find one of the only black CPA’s in the area, the CPA told King he would not hire him as it would only create a competitor. From that moment, King determined that he would never refuse anyone help the way he had been refused.

After discovering that Maryland did not have a work requirement to sit for the CPA exam, King moved his family to Seat Pleasant. In June of 1957, he became the first black CPA in Maryland—and only the 54th in the entire nation.

King eventually established his business in Baltimore, where he became the primary CPA for small, black-owned businesses in the area. He partnered with Art Reynolds in 1958, another black CPA, and began teaching at Morgan State University. There, he encouraged students to become accountants and either hired or helped them land a position elsewhere after they graduated.

In 1969, he was appointed to the Maryland State Board of Public Accountancy and became chairman. In 1973, King founded the Baltimore chapter of the National Association of Black Accountants, sitting as President twice. To this day, the Baltimore chapter continues to support young tax professionals the way King did until his death in 2005 at the age of 77.

Upon his death, King left behind five children—four of whom became accountants and three of whom continue to run King, King & Associates in Baltimore, the firm that their father created.

The firm still has some of King’s original clients, and the three children maintain their father’s legacy by actively supporting young black accountants in Maryland.

Black History Month is a time to acknowledge and celebrate the achievements of the African American community and their role in U.S. history. While the most popular celebrations tend to focus on political activists, authors, or musicians, it is just as important to recognize lesser-known roles. We will use this month as an opportunity to celebrate African-Americans who trailblazed the accounting profession.

There is no better place to begin this celebration than by focusing on the life of America’s first Black CPA: John W. Cromwell, Jr. In 1883, Cromwell was born to John W. Cromwell, Sr. and Lucy McGuinn. Cromwell’s father was born into slavery and bought his family’s freedom in 1851. Thereafter, he took on many roles, including lawyer, journalist, and civil rights activist in Washington D.C.

Cromwell followed in his father’s hardworking footsteps and graduated with honors from Dartmouth College in 1906, obtaining his master’s degree the following year. Since he was not allowed to sit for the CPA exam in D.C.—or any other surrounding state—he began teaching high school math.

It wasn’t until New Hampshire passed a law in 1921 waiving the experience requirement to sit for the exam, that Cromwell became licensed. From there, he continued to teach while practicing as an accountant in his own firm in D.C. His clientele primarily consisted of members of the black community. In 1930, he became comptroller of Howard University.

While Cromwell’s achievement was a significant moment in history, it still took another 45 years for the first 100 black accounts to be licensed. Of the first 100, 28 were licensed in Illinois alone, which meant most of the country was staggeringly nonprogressive. By the time the National Association of Black Accountants was founded in 1969, there were only 136 black CPAs. When Cromwell passed away at the age of 88 in 1971, that number had hardly grown.

Even today, black accountants only represent approximately 2% of all licensed CPAs in the United States. In our mission to support and encourage a more diverse field, it is continuously important that we take time to recognize pioneers like John Cromwell.