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What Are the Requirements to Earn a CPA?

Becoming a Certified Public Accountant (CPA) signifies that an account has reached the pinnacle of the accounting field. CPAs have advanced expertise in accounting and finance, and demonstrate a commitment to professional ethics and the ability to perform high-level auditing, tax and financial analysis.

CPAs are highly regarded financial experts who play a crucial role in businesses, government agencies and public accounting firms. They provide services in auditing, tax preparation and financial analysis. They sometimes serve as consultants, becoming trusted advisors to organizations and individuals.

Because CPAs are trusted to handle sensitive financial information and make significant strategic decisions, the process to become licensed is rigorous and requires a substantial commitment to education.

Many who enter an accounting degree program have either become a CPA or are preparing to take the exam. In either case, a master’s degree program can help accountants excel in their chosen field.

While there are many accountants in the United States, not all become CPAs. According to the U.S. Bureau of Labor Statistics (BLS), there are about 1.5 million accountants in the United States. According to the National Association of State Boards of Accountancy (NASBA), there are 671,855 CPAs in the U.S., as of 2024. With less than 50% of accountants earning a CPA, doing so puts accountants in the upper echelon of their field.

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What Are the Requirements to Become a CPA?

The requirements to become a Certified Public Accountant (CPA) vary by state in the United States, but there are some common elements across most jurisdictions. Here’s an overview of the general requirements.

Educational Requirements

  • Most states require candidates to have at least 150 semester hours of college education, which typically includes a bachelor’s degree in accounting or a related field.
  • This education often includes specific coursework in accounting, auditing, taxation and business-related subjects. Some states allow candidates to sit for the CPA exam with a bachelor’s degree (120 credit hours) but require 150 credit hours for licensure.
  • Many aspiring CPAs complete a master’s degree in accounting or a related field to meet the 150-hour requirement.

The 150 hours can be earned in a variety of ways, according to the American Institute of Certified Public Accountants (AICPA). One of the most common is to combine the hours earned in a bachelor’s degree program and a master’s degree program. For example, Eastern Connecticut State University’s online Master of Science in Accounting program satisfies the 150-hour requirement.

The AICPA also offers reasons why the 150-requirement was developed. They include:

  • The expansion in knowledge base needed because of the increase in official accounting and auditing pronouncements and the proliferation of new tax laws
  • The increasing complexity of business methods, combined with more regulations at the federal, state and local government level.
  • Improvements in technology that have had a major effect on information systems design, internal control procedures and auditing methods.

CPA Examination

Candidates must pass the Uniform CPA Examination, which is divided into four sections:

  • Auditing and Attestation (AUD)
  • Business Environment and Concepts (BEC)
  • Financial Accounting and Reporting (FAR)
  • Regulation (REG)

The exam is rigorous, and most states require candidates to pass all four sections within an 18-month period.

Experience Requirements

Most states require candidates to have relevant work experience under the supervision of a licensed CPA. The experience requirement typically ranges from one to two years and may include work in areas such as auditing, taxation or financial accounting.

Some states also specify the type and scope of acceptable work experience.

Ethics Examination

Many states require candidates to pass an ethics exam or complete an ethics course, which ensures that CPAs understand professional ethics standards.

Licensure and Continuing Education

  • Once all requirements are met, candidates can apply for CPA licensure from their state’s board of accountancy.
  • CPAs must complete continuing professional education (CPE) courses regularly to maintain their license. The specific CPE requirements vary by state.

These requirements can vary significantly from one jurisdiction to another, so it’s important to check with your state’s board of accountancy for the specific criteria applicable in your state.

Reasons For Becoming a CPA

Accountants who earn the CPA designation have certain advantages over those who have not. They include the following, according to the National Association of State Boards of Accountancy.

  • Higher Salary Potential: According to the U.S. Bureau of Labor Statistics, the median annual salary for accountants and auditors was $79,880 in May 2023. The NASBA projects that professionals can earn 10% to 15% more with a CPA license compared to those without a CPA.
  • Increased Opportunity for a Promotion. Earning a CPA shows a commitment to being the best in the profession, which in turn can open the doors to better positions.
  • Job Security: CPAs are less likely to lose their job. In fact, the BLS projects a 6% increase in accounting jobs nationwide through 2033.
  • Career development: No matter where a CPA might take you career-wise, the knowledge gained in preparing for the rigorous exam makes you a better CPA

Earning a CPA is a strategic move in an accountant’s career, offering significant benefits such as enhanced credibility, greater job security and higher earning potential. The CPA designation opens doors to advanced roles in auditing, tax and advisory services, setting accountants apart as trusted experts. As a CPA, professionals gain access to more career opportunities and increased responsibility. Perhaps most importantly, becoming a CPA reflects a commitment to ethical and rigorous standards, which is highly valued by employers and clients alike.