How to Become a CPA: A Complete Guide to Success

So, you’re ready to take on the challenge of becoming a CPA? Excellent choice!

But let’s be real—it’s not a walk in the park.

Meeting the education requirements, passing the CPA exam, and knowing state-specific accounting coursework and licensing rules can feel like a mountain of tasks. Where do you even begin?

Here’s the thing:

Becoming a Certified Public Accountant isn’t just about hitting the books. Accounting professionals need a strategy for understanding what courses they need to take on the toughest parts of the exam that only about half of people pass; every step counts.

Curious about how long it takes? Unsure of which state rules apply to you?

Keep reading. As someone who went down this path, I’ll walk you through everything you need to get that CPA license in hand and set yourself up for a rewarding career in accounting.

Key Takeaways

• CPA Educational Requirements: Most states require 150 semester hours, which go beyond a typical accounting degree. Completing this coursework is the first major step toward becoming a CPA.
• 2024 CPA Exam Updates: The BEC section has been replaced by specialized Discipline Sections, reflecting the need for deeper knowledge in specific accounting areas.
• Work Experience: States mandate 1-2 years of supervised accounting experience, varying by jurisdiction, to ensure practical knowledge before licensure.
• State-Specific Licensure: Requirements like CPE hours and ethics exams differ across states, emphasizing the need to understand your specific state’s licensure process.

1. CPA Educational Requirements

To become a CPA, meeting your state’s education requirements is the first critical step. While the general requirement across the U.S. is a bachelor’s degree in accounting or a related field, most states also require 150 semester hours of higher education. Since a traditional bachelor’s degree typically offers just 120 semester hours, many CPA candidates either pursue a master’s degree or take additional undergraduate courses.

Most states break down their education requirements as follows:

• Bachelor’s degree in accounting or business.
• A minimum of 150 semester hours of coursework.
• Specific credits in accounting and business-related subjects such as financial accounting, auditing, and taxation.

Each state has slightly different rules on what type of courses you need, so here’s an example of some key states, along with a table overview of all the states in the U.S.:

• Texas: Requires 150 semester hours, including 24 hours in accounting (21 upper-level), 24 hours in business courses, six additional upper-level accounting hours, and 3 hours in ethics.
• New York: Requires 150 semester hours, including 33 hours in accounting and 36 hours in business-related courses.
• North Carolina: Requires 150 semester hours, including 30 hours in accounting and 24 hours in business-related courses.
• Florida: Requires 150 semester hours, including 24 hours in upper-level accounting (with coverage in auditing, cost accounting, financial accounting, and taxation) and 24 hours in general business courses (including business law).
• California: 150 semester hours, including 24 semester hours in accounting subjects, 24 semester hours in business-related subjects, 20 semester hours in accounting study subjects, and 10 semester hours in ethics.
• Illinois: Requires 150 semester hours, with 30 hours in accounting and 24 hours in business courses.

CPA Education Requirements by State

These course requirements are designed to ensure that CPA candidates have a solid foundation in accounting principles, business administration, and financial planning.

2. Relevant Work Experience

Once your education is complete, the next step is meeting the work experience requirements. Most states mandate that CPA candidates complete a certain amount of relevant experience under the supervision of a licensed CPA before they can apply for full licensure. This hands-on experience is critical because it provides practical knowledge of financial accounting, tax preparation, auditing, and more.

Here’s how some states define their work experience requirements:

• California: Requires one year (or 2,080 hours) of general accounting experience, including tax preparation, financial planning, and audits, under the supervision of an active CPA.
• Texas: Candidates need one year (12 months) of experience in accounting, tax preparation, or auditing, supervised by an active CPA.
• New York: Requires a minimum of one year (2,000 hours) of full-time work experience in public accounting or two years of accounting experience in government or industry.
• Florida: Applicants must have one year of work experience, which can be earned in public accounting, government, or a corporate setting, under the direct supervision of a licensed CPA.
• North Carolina: Requires one year of supervised accounting experience, which can include work at a public accounting firm or in business or government.
• Illinois: Requires one year of full-time experience in accounting-related work, including auditing, taxation, or managerial accounting.

These experiences give candidates exposure to the day-to-day tasks and responsibilities that come with the profession, ensuring they’re prepared to take on complex accounting tasks and pass the CPA exam.

3. Choosing the Right Courses to Prepare

Your academic coursework will form the backbone of your CPA journey, so choosing the right courses is crucial. You’ll need a mix of accounting and business administration courses that cover key areas such as:

• Financial Accounting
• Auditing
• Tax compliance
• Business analysis

Some students opt to take additional courses in niche areas like forensic accounting or information systems, which can help with specialized career paths. During my own preparation, advanced courses in tax law and business valuation were instrumental in building the foundational knowledge I needed to excel both on the exam and in my career.

4. Updated CPA Exam: What’s New?

The CPA exam underwent significant changes in 2024 to reflect the evolving demands of the accounting profession. Under the CPA Evolution initiative, the exam has moved from a generalist model to a structure that allows candidates to choose a specialized discipline, removing the Business Environment and Concepts (BEC) section in favor of new Discipline Sections. This update aligns the CPA Exam with the skills essential for modern CPAs, particularly in technology, data analysis, and advanced financial reporting.

New Structure Overview Core Sections

The 2024 CPA exam now includes three core sections and one selected discipline section, allowing candidates to focus on areas that align with their career goals. Each section is broken down as follows:

Auditing and Attestation (AUD): This section covers auditing standards, ethics, and professional responsibilities. It now includes foundational economic principles and internal controls—topics formerly in BEC—providing insight into how business contexts shape audits.

• Question Breakdown: 78 multiple-choice questions (MCQs) and seven task-based simulations (TBSs), with a 50/50 split in scoring weight.

Financial Accounting and Reporting (FAR): Emphasizes financial reporting standards for for-profit, governmental, and nonprofit entities. Covering a wide range of accounting standards, FAR often requires extensive study time.

• Question Breakdown: 50 MCQs and 7 TBSs, equally weighted at 50% each.

Regulation (REG): Focuses on U.S. federal taxation, ethics, and business law, providing a comprehensive view of tax compliance and legal standards for individuals and businesses.

• Question Breakdown: 72 MCQs and 8 TBSs, with a 50/50 split in scoring weight.

New Structure Overview Discipline Sections

Discipline Sections (Choose One): Each discipline section allows candidates to specialize in a specific area relevant to their career path. The sections include:

Business Analysis and Reporting (BAR): Ideal for candidates in corporate finance or public accounting, BAR covers advanced financial accounting, technical accounting, and financial reporting. With the removal of the BEC, BAR now includes advanced topics such as business combinations, derivatives, stock compensation, and public company reporting standards.

• Question Breakdown: 50 MCQs and 7 TBSs, weighted at 50% each.

Information Systems and Controls (ISC): This section is focused on I.T. auditing, cybersecurity, and internal controls. ISC emphasizes cybersecurity, data analytics, SOC (System and Organization Controls) engagements, and I.T. governance—essential topics for accounting roles centered on technology and data management.

• Question Breakdown: 82 MCQs and 6 TBSs, with MCQs weighted at 60% and TBSs at 40%.

Tax Compliance and Planning (TCP): Focuses on tax law, tax planning, and compliance strategies, making it ideal for those interested in tax advisory roles. TCP provides a deep dive into complex tax scenarios, helping candidates build expertise in managing tax compliance for both individuals and businesses.

• Question Breakdown: 68 MCQs and 7 TBSs, with a 50/50 weighting.

Continuous Testing Update

As of 2024, the CPA Exam has transitioned to a continuous testing model, allowing candidates to schedule and take exams year-round, replacing the traditional quarterly testing windows. This change enables candidates to choose exam dates with only brief blackout periods for system maintenance, providing much-needed flexibility to plan around professional and personal obligations.

Redistribution of BEC Content

With the elimination of the BEC section, key topics have been redistributed to other CPA Exam sections to ensure coverage of essential business concepts:

• AUD now includes economic principles and internal controls, expanding the understanding of how business environments affect audit processes.
• BAR incorporates advanced BEC topics such as business combinations, derivatives, and stock compensation, aligning these concepts with BAR’s emphasis on financial analysis and reporting.

5. Preparing for and Passing the CPA Exam

The CPA exam is difficult, with pass rates hovering around 50%. Most candidates spend months preparing, and it’s common for people to retake certain sections. Preparing properly is critical to passing all four sections. I found that investing in a CPA review course, which included mock exams, practice questions, and a structured study plan, made all the difference in my preparation.

It’s important to note that CPA candidates must pass all four sections within an 18 to 30-month rolling window. Failing to do so means you’ll have to retake any sections that fall outside that period. For instance, I passed three sections on my first attempt but had to retake the REG section due to its complexity.

6. State-Specific License and CPE Requirements

Once you pass the CPA exam, the next step is meeting the remaining licensing requirements in your state. Each state has its own regulations, particularly when it comes to maintaining licensure through continuing professional education (CPE). Here are examples of CPE requirements across several states:

• California: Requires 80 hours of CPE every two years, including 20 hours annually, 12 hours in technical subject matter each year, and four hours of ethics training. A two-hour Regulatory Review course is also required if more than six years have passed since the last completion of the course.
• New York: Requires 24 or 40 contact hours of CPE annually (24 in a specific subject area or 40 in any combination), plus 4 hours of professional ethics every three years, which can count toward the annual CPE requirement
• Florida: Requires 80 hours of CPE for each renewal period, including 8 hours in accounting and auditing, 4 hours of Board-approved ethics, and no more than 20 hours in behavioral subjects.
• Texas: Requires CPAs to complete 120 hours of CPE within the first three years of licensure, including at least 20 hours annually. At least four hours dedicated to ethics.
• North Carolina: Mandate 40 CPE hours annually, including a two-hour ethics course.

7. Career Opportunities for CPAs

After earning your CPA license, your career options expand dramatically. CPAs are in high demand across various sectors, including public accounting, corporate finance, government, and nonprofit organizations. Here are some common career paths for CPAs:

• Tax Compliance and Planning: Helping individuals and businesses prepare and plan for taxes.
• Auditing: Conducting audits for companies to ensure compliance with regulations and accounting standards.
• Financial Planning: Advising clients on long-term financial goals and strategies.
• Forensic Accounting: Investigating financial crimes like fraud or embezzlement.

The CPA designation is highly respected and opens doors to leadership positions such as Chief Financial Officer (CFO) or Controller.

Conclusion

Becoming a CPA requires a solid plan, from meeting the education requirements to passing the updated CPA exam and gaining the necessary work experience. The process is demanding but achievable with dedication and the right strategy. Once you’ve earned your CPA designation, the career opportunities are vast and varied, allowing you to specialize in areas like tax compliance, auditing, or financial planning.

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