An accounting professional who fulfills higher, uniform standards for knowledge and skills is called a Certified Public Accountant (CPA). Moreover, they are legally permitted to carry out professional duties that non-CPAs cannot. Certainly, passing the CPA exam opens the door to CPA licensing, but there are many other things you should know if you are willing to take the CPA career path.
Accountants make up the majority of CPAs. The qualification does, however, also transfer to other job pathways. Financial planning, compliance, auditing, and forensic accounting are a few of them.
In the US, CPA certificates are issued by government-aligned state bodies. Your specific road to CPA licensing may vary based on where you live.
In this blog, we will cover all requirements and general information on CPA license.
How Do You Qualify for a CPA License?
CPA certification criteria include the ‘three Es: education, experience, and exams.’
To get certified, CPA applicants must have a bachelor’s degree and the equivalent of 150 semester hours of college credit. One year of relevant professional experience in academia, the public sector, the commercial sector, or government is also commonly required. These professionals must also pass the Uniform CPA Exam.
In some states, individuals may take the CPA exam before receiving their undergraduate degree. Others demand that accountants obtain a license after passing an extra test on professional ethics.
Let’s explore the three ‘Es’ one by one.
Educational Requirements
According to state requirements, applicants seeking CPA certification must have at least 150 semester hours of college education or the equivalent. In addition, candidates must have a bachelor’s degree.
However, many states do not need candidates to have an accounting degree, and educational qualifications often involve a minimum number of upper-level accounting courses. Earning a bachelor’s degree in accounting might help meet your state’s education requirements. Many states, additionally, require prospective CPAs to complete credits in related fields such as economics, finance, business administration, and/or, business management. States continue to have differing criteria regarding whether or not applicants for the CPA exam can take it before obtaining their degree.
Experience Requirements
According to state regulations, candidates for CPA certification must typically have at least a year of relevant experience. Most jurisdictions have defined 1,800–2,000 work hours as one year of experience. Candidates need to get that experience in a definite amount of time.
Additionally, experience often entails one or more of the following responsibilities:
- Attestation
- Auditing
- Compilation
- Financial or management advisory services
- Preparation of financial statements
In states, like California, teaching postsecondary accounting courses is also recognized as relevant professional experience.
Examinations
The format of the CPA exam has changed in 2024. Unlike the four sections in the previous pattern, now the candidates have to take three core sections- Financial Accounting & Reporting (FAR), Auditing & Attestation (AUD), and Taxation and Regulation (REG), and one selective discipline exam. A candidate can choose any one of the following- Business Analysis & Reporting (BAR), Information Systems & Controls (ISC), and Tax Compliance & Planning (TCP) disciplines.
CPA exams are conducted 365 days a year, allowing you to pick dates at your convenience. Also, the regulation says you have 20 months from the day you passed your first test to pass the remaining three. You can complete all four exams in 20 months with a proper approach and focus on your goal.
Prepare for the CPA Exam with Andrew Katz Tutoring
Andrew Katz Tutoring can help you stay aligned with your goal and pass the CPA exam on your first attempt. With years of experience in the accounting field and a proven track record, Andrew Katz and his team offer personalized tutoring services tailored to each individual’s needs.
Andrew Katz Tutoring Services provides comprehensive study plans, customized practice materials, and one-on-one coaching sessions designed to maximize your potential. Whether you are struggling with complex accounting principles or seeking guidance on obtaining your CPA license, Andrew Katz tutoring is dedicated to helping you succeed.