CPAs use their knowledge of accounting and taxation to help businesses maintain their financial records. They can apply their expertise to multiple roles, including budget analyst, tax accountant, and auditor.

Generally, CPAs have a higher salary and additional job opportunities compared to accountants. While noncertified accountants can qualify for entry-level jobs, managerial positions may require a CPA designation.

The CPA exam can be challenging, often requiring months of studying. The four-part exam requires a minimum score of 75 in each section, and you must pass all sections within the same 18- to 30-month window.

Learn how to get started on this accounting career path. A certified public accountant (CPA) is an accounting professional who has met certain education, exam, and experience requirements for licensure by a state board of accountancy.

A certified public accountant has at least a bachelor’s degree in accounting and has passed the CPA exam. A Certified Public Accountant license represents the top level of achievement for accounting professionals. Learn what it takes to achieve that designation and work in the industry. 

As a certified public accountant, you’ll have the opportunity to work with individuals and businesses in various industries, advising on financial and tax-related matters.

Passing the Certified Public Accountant (CPA) exam is a common, early-career goal for professionals in the accounting field. While it’s not a requirement to work as an accountant, it’s frequently a prerequisite for hiring at major firms and to secure promotions.

The rigorous exam consists of four total sections, three of which cover knowledge of accounting, auditing and tax that every CPA is expected to know. For the fourth section, each candidate chooses a discipline in which to demonstrate a deeper understanding.  Additionally, there are strict requirements you must complete before sitting for the exam and then receiving licensure.

Eligibility Requirements for the CPA Exam

In the journey to become a CPA, students must meet general academic, accounting and work experience requirements. Each jurisdiction sets its own requirements, but most require CPA candidates to earn a bachelor’s degree and complete an additional 30 semester credit hours. Within the number of courses completed, most states require CPA candidates to include a certain number of general business courses in addition to accounting courses. Some states have specific requirements regarding the content of some courses. Colorado has one set of education requirements candidates must satisfy before sitting to the exam and an expanded set of education rules before candidates can obtain the license. The rules can be complicated, and Daniels helps students navigate them.

Obtaining the necessary education and passing the exam are the first two steps towards licensure. The third step is to meet the experience requirement. All jurisdictions require CPA candidates to satisfy the “three Es” – education, exam and experience, but only the exam is uniform across all 50 states. The experience requirement is one-year for all jurisdictions, but the type of experience that counts might vary.

It’s important to check you for their rules. Lassar said that once you’re licensed in one state, you generally have practice privileges in other states, but your employer will likely want you to be licensed in the state where you spend most of your time.

“We work with the students to point them to the rules for whichever jurisdiction they plan on moving to when they graduate, and we help them meet the rules to become a licensed CPA in that state.

CPA licensure, candidates in every state must hold a bachelor’s degree and complete 150 credits of college-level coursework. However, the number of credits required to sit for the CPA exam varies by state — some jurisdictions require the full 150 credits for prospective CPAs to sit for the test, while other states only stipulate the completion of 120 credits before the exam.

Prospective CPAs who meet this educational requirement and other state prerequisites can start the CPA exam process through the National Association of State Boards of Accountancy (NASBA).

Signing up for the exam involves applying, transcripts, and application fees. Approved applicants receive an authorization to test, which allows them to sign up for one part of the test within a certain number of months.

Previously, CPA examinees in every state had 18 months to pass all four sections of the test. As of 2024, NASBA lets states open a 30-month window for test-takers, a timeline which begins on the date they pass the first section. Investigate your state’s requirements to determine how long your testing timeline runs.

People who successfully pass the CPA exam and meet all other state requirements can apply for licensure. Licensed professionals must complete CPE credits and pay a renewal fee to their state’s board of accountancy.

Your Pathway to a Successful Accounting Career: Becoming a Certified Public Accountant (CPA)

Introduction

In the realm of finance and accounting, few designations carry as much weight as the Certified Public Accountant (CPA). This prestigious title not only enhances your career prospects but also positions you as a trusted advisor in financial matters. If you’re considering a career in accounting, understanding the path to becoming a CPA is essential. This blog will provide you with a comprehensive guide to achieving CPA licensure, exploring the benefits, requirements, and steps necessary to succeed in this rewarding field.

What is a CPA?

A Certified Public Accountant (CPA) is a licensed professional who has met specific education, exam, and experience requirements set by state boards of accountancy. CPAs are equipped with the expertise to manage financial records, offer tax advice, conduct audits, and provide strategic financial consulting across various industries. This credential signifies a high level of professional competence and ethical standards, making CPAs highly sought after in the accounting field.

Benefits of Becoming a CPA

1. Higher Earning Potential

One of the most significant advantages of obtaining a CPA license is the potential for a higher salary. On average, CPAs earn considerably more than their non-certified counterparts. According to industry reports, CPAs can expect to earn higher starting salaries and enjoy greater pay increases throughout their careers, reflecting the added value they bring to organizations.

2. Expanded Job Opportunities

Having a CPA designation opens the door to a wide array of career opportunities. While non-certified accountants can qualify for entry-level positions, managerial roles often require a CPA license. CPAs can work in diverse fields such as:

• Public Accounting Firms
• Corporate Finance Departments
• Government Agencies
• Nonprofit Organizations

With the increasing complexity of financial regulations, the demand for CPAs continues to grow.

3. Credibility and Trust

Becoming a CPA enhances your credibility in the eyes of clients and employers. The rigorous education and examination process demonstrates your commitment to the profession and your expertise in accounting standards. Clients are more likely to trust the financial advice of a CPA, which is crucial for building long-term relationships and securing business opportunities.

4. Career Advancement

Many major accounting firms and corporate finance departments prioritize hiring CPAs for key positions. Obtaining your CPA license can significantly enhance your career trajectory, enabling you to pursue promotions and specialized roles within your organization.

The Path to Becoming a CPA

Meet Educational Requirements

The journey to becoming a CPA typically begins with obtaining a bachelor’s degree in accounting or a related field. Most states require candidates to complete 150 semester hours of college coursework, which is 30 hours beyond a standard bachelor’s degree. This requirement often includes a mix of accounting courses and general business classes. Some states have specific course content requirements, so it’s essential to review the rules of your state board of accountancy.

Gain Relevant Experience

In addition to educational requirements, aspiring CPAs must fulfil work experience criteria. All jurisdictions require candidates to complete at least one year of relevant experience in a professional accounting environment. However, the nature of acceptable experience can vary, so it’s important to familiarize yourself with your state’s regulations.

Pass the CPA Exam

The CPA exam consists of four sections, each covering different areas of accounting, auditing, and taxation. Candidates must score a minimum of 75 on each section. The exam is known for its rigor and often requires months of dedicated study. You must pass all four sections within a designated timeframe, which varies by state; as of 2024, some states allow a 30-month window starting from when you pass your first section.

To begin the CPA exam process, candidates must apply through the National Association of State Boards of Accountancy (NASBA). The application typically requires submitting transcripts, proof of education, and payment of fees. Once approved, you will receive an authorization to test, allowing you to register for each part of the exam.

Obtain Your License

Upon successfully passing the CPA exam and meeting all state requirements, you can apply for your CPA license. This process generally involves submitting proof of education, exam results, and relevant work experience to your state board of accountancy. Once licensed, CPAs must complete Continuing Professional Education (CPE) credits and pay renewal fees to maintain their license.

Eligibility Requirements for the CPA Exam

While the general pathway to becoming a CPA is similar across states, specific eligibility requirements can vary. Candidates typically must:

• Hold a bachelor’s degree in accounting or a related field.
• Complete 150 semester hours of college credit (some states allow 120 hours to sit for the exam).
• Fulfil the work experience requirement as defined by their state board of accountancy.

It’s essential to consult your state’s board for detailed requirements, as some states may have unique rules or additional prerequisites.

Certified Public Accountant is a significant milestone that can dramatically impact your career in accounting. The rigorous educational and examination process, coupled with the credibility and trust that comes with the CPA designation, positions you as a leader in the field. By understanding the steps involved and the benefits of obtaining your CPA license, you can set yourself on a pathway to a successful and fulfilling career in accounting. Start your journey today and embrace the opportunities that come with becoming a CPA!