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The number of Blacks and Latinos entering the accounting profession is looking a bit shaky when you crunch the numbers.

Not only are whites exiting the accounting profession at a faster rate than many other professions, the ranks of Blacks and Latinos are still very small despite concerted efforts to attract, retain and advance these groups, according to a recent study, "Minorities in Tax 2010," conducted by TaxDiversity, a web site dedicated solely to issues of diversity in the accounting profession.

Although some noticeable progress has been made between 2002 and 2008, "the accounting profession has made very limited strides in both attracting and advancing minorities within the field," the study finds.

Among the study's key findings:

• Overall, white people are exiting the tax profession at a faster rate than many other professions.
• Even though the number of Blacks in the public accounting profession has increased by 25 percent between 2002 and 2008, they still only represent 4 percent of accountants. At the senior level, the percentage of Black accountants drops to only 2 percent.
• Within the government sector, Blacks are faring better. Black accountants now represent 20 percent of the work force at the Internal Revenue Service compared with only 4 percent in the private sector.
• In public accounting firms, Latinos represent 5 percent of accountants. At the senior level, the percent of Latino accountants drops to 3 percent. In the government sector, the percentage of Latino accountants increased from 6 percent to 8 percent.
• Over the past six years, Asians have made the most significant jump in representation, now comprising 20 percent of the work force in public accounting. That's up 30 percent over the past six years.

These numbers are even more troubling given the huge efforts undertaken over the past 40 years to attract Blacks and Latinos to the profession, including scholarships and fellowships, from groups like the American Institute of Certified Public Accountants and other industry, business and academic groups.

The study found that even though white baby boomers have been the majority in the accounting profession for years, they are now heading into retirement earlier than other professions. This trend is decreasing the overall number of white accountants in both the government and public sectors.

At the same time, the number of Blacks, Latinos and Asians is simply not keeping pace.

"The data in this report clearly identifies that even with some areas of positive change from 2002 to 2008, the tax profession at large is simply not doing enough to attract, retain and advance minorities into long-term career positions, especially positions in senior management," according to the report.

Even though new graduates coming out of school with accounting degrees appear to be more racially/ethnically diverse, the pipeline of Black and Latino students who choose to major in accounting during college still remains low. Why don't Black and Latino college students choose accounting? According to one study conducted by the CPA Journal, "Examining Minorities' Perceptions of Accounting," "significant misperceptions" exist about the accounting profession and these misperceptions begin before students enter college. The findings suggest that high-school teachers and counselors "are important influences on students' choice of a major. If the profession is to appeal to the next generation, it must get its image across at the time when lasting impressions of career choices are being formed." The study recommends that the accounting profession should reach out to Black and Latino students when they are still in high school to dispel myths and stereotypes about the practice of accounting.

"In attempting to attract minority students, perhaps the profession should focus on providing information as early as possible regarding the flexibility of career options available with an accounting degree. The results of this study indicate that such early exposure to accounting during pre-collegiate education may be a crucial factor in the eventual choice of a college major," the report states.

What else can be done to strengthen diversity in the accounting profession? The TaxDiversity study recommends:

FOR LARGE PUBLIC ACCOUNTING FIRMS

• Large public accounting firms should widen their recruiting practices to include a larger pool of schools, including second-tier schools with accounting programs that have a larger representation of Black and Latino students.
• Public accounting firms need to create advanced education partnerships with recent graduates to help them integrate faster into more senior-level positions. They should also expand mentoring programs to effectively connect senior professionals with new talent coming into the profession.

FOR CORPORATE TAX DEPARTMENTS

• Corporate tax departments should institute more aggressive internship programs and mentoring programs to attract young and diverse candidates into the work force and help promote them up the ranks.
• Corporations also need to broaden the scope of their recruiting efforts and stop relying solely on the pool of candidates at public accounting firms.

The bottom line:

"The challenges of diversity in the tax profession are not easily met without an industry-wide recognition that business as usual will simply not work any longer. The tax profession must do a better job of recruiting, training, and elevating diverse professionals in the field," the study concluded.