How to Become a CPA Without an Accounting Degree

Think you need an accounting degree to become a CPA? Think again.

Here’s a surprising fact:

According to the National Association of State Boards of Accountancy (NASBA), only 44% of CPA candidates earned their bachelor’s degree in accounting, down from 55% just a few years ago.

So, how can you join the growing number of candidates from non-accounting backgrounds? Let’s walk through the steps to turn your degree into a CPA certification and jumpstart your career in accounting.

Key Takeaways

• Becoming a CPA Without an Accounting Degree: Learn how you can achieve CPA licensure even if your degree isn’t in accounting.
• CPA Exam Changes: Discover the new exam structure and what it means for aspiring CPAs.
• Alternative Educational Paths: Explore ways to meet educational requirements through programs beyond traditional accounting degrees.
• Strategies for CPA Exam Preparation: Uncover effective methods to study and succeed on the CPA exam.
• Understanding Work Experience Requirements: Find out what professional experience you need to complete your CPA journey.

Understanding the CPA Credential

Becoming a Certified Public Accountant (CPA) is a significant professional milestone that can open doors to numerous career opportunities in accounting, finance, and business. CPAs are trusted advisors who help individuals and organizations with financial planning, tax preparation, auditing, and consulting.

But here’s a question:

Can you become a CPA without an accounting degree? Absolutely!

The CPA designation is a highly respected professional credential that signifies a high level of knowledge and expertise in accounting and finance. It is recognized nationwide and even internationally, making it a valuable asset for anyone looking to advance their career path.

Educational Requirements for Non-Accounting Majors

In most states, CPA candidates need a bachelor’s degree along with 150 semester hours of education. But if your degree isn’t in accounting, don’t worry. You can still meet the educational requirements by completing specific accounting and business courses.

Accounting and Business Coursework

Even without an accounting degree, you’ll need to complete a minimum number of accounting and business courses to meet state licensure requirements. State requirements can vary, so while some states require 24 semester hours in accounting, others may require 30 hours. Business-related coursework also typically includes around 24 hours but may vary. Check your specific state’s board of accountancy here for exact credit hours.

• Accounting Courses: Typically, this includes subjects like financial accounting, auditing, taxation, and managerial accounting.
• Business Courses: Courses may include finance, business law, economics, and business ethics.

These courses can be taken at an accredited college or university. It’s crucial to ensure that the courses you select meet your state’s specific CPA education requirements. Many non-accounting majors choose to complete these courses through evening classes or online programs while working full-time.

Changes to the CPA Exam in 2024

The CPA exam saw major updates in 2024 as part of the CPA Evolution initiative, a modernization designed to reflect the expanding role of accountants in today’s business and technological landscape. One of the most notable changes is the removal of the Business Environment and Concepts (BEC) section, with its content integrated into other areas. In place of BEC, candidates now choose one Discipline Section to specialize in, allowing for a more customized exam experience that aligns with individual career goals.

Core Sections

Every CPA candidate is required to complete three core sections, which cover essential principles in auditing, financial reporting, and regulation. Here’s an overview:

• Auditing and Attestation (AUD): This section has expanded to include fundamental business and economic concepts, providing context for how economic principles and internal controls impact audit practices. AUD emphasizes auditing standards, ethics, and other critical areas of public accounting.
• Financial Accounting and Reporting (FAR): FAR continues to focus on the financial reporting standards that are foundational for businesses, government entities, and nonprofits. Covering a broad range of accounting principles, this section requires an in-depth understanding of financial statements and reporting frameworks.
• Regulation (REG): REG covers taxation, ethics, and business law, equipping candidates with essential knowledge in federal tax and regulatory matters. This section provides a comprehensive look at compliance and legal standards that are crucial in accounting practices.

Discipline Sections

In addition to the core sections, candidates select one of three Discipline Sections based on their area of interest, allowing them to specialize in a relevant field. This change not only helps candidates deepen their expertise but also ensures they are well-prepared for specific roles within the accounting profession:

• Business Analysis and Reporting (BAR): Ideal for candidates focused on financial reporting and corporate finance, BAR covers advanced topics like business combinations, financial analysis, and technical accounting standards. It’s tailored for those interested in advising on financial strategies or working in public accounting.
• Information Systems and Controls (ISC): Designed for candidates who want to specialize in IT auditing and data security, ISC emphasizes cybersecurity, data management, and the systems that safeguard financial information. This section is perfect for those interested in roles at the intersection of accounting and technology, such as IT risk management.
• Tax Compliance and Planning (TCP): TCP is focused on tax law and planning strategies, making it an excellent choice for those interested in tax advisory or compliance roles. Candidates delve into federal taxation, complex tax strategies, and the regulatory requirements needed to provide comprehensive tax services.

Alternative Educational Pathways

If you have a non-accounting degree, there are several ways to fulfill the CPA educational requirements:

Post-Baccalaureate Programs

If you have a bachelor’s degree in a non-accounting field, post-baccalaureate programs offer a way to complete the necessary accounting coursework. These programs are designed for non-accounting majors and can often be completed in a year or less. They provide the required accounting credit hours to meet the CPA education requirements without pursuing another full degree.

Master’s Degrees in Related Fields

Pursuing a master’s degree in business administration (MBA) or finance can help you meet the 150-semester-hour requirement. Many universities offer MBA programs with concentrations in various accounting subjects, allowing you to fulfill both the educational and accounting credit hour requirements. This path not only prepares you for the CPA exam but also enhances your qualifications in the business world.

Preparing for the CPA Exam

Passing the CPA exam is a critical step in becoming a licensed CPA. The exam is rigorous and covers a wide range of topics in accounting, finance, and business. It consists of multiple-choice questions and task-based simulations designed to test your knowledge and skills comprehensively.

CPA Exam Preparation Strategies

• Invest in a CPA Review Course: Quality CPA exam prep materials are essential. CPA prep courses like Becker, Surgent, or Gleim provide comprehensive coverage of exam topics, practice questions, and simulations.
• Create a Study Schedule: Consistency is key. Allocate regular study times, set realistic goals, and stick to your plan. This is especially important if you’re balancing work or other commitments.
• Focus on Weak Areas: Take advantage of practice exams to pinpoint where you’re struggling. Prioritize these topics in your study sessions to strengthen your grasp and ensure you’re well-prepared across all sections of the exam.
• Join Study Groups or Forums: Collaborating with other CPA candidates can provide support, additional insights, and motivation.
• Stay Updated on Exam Changes: Ensure you’re studying the most current material, especially with the 2024 exam changes. The American Institute of CPAs (AICPA), the national association overseeing the CPA credential, provides the latest information.

Meeting Work Experience Requirements

In most states, CPA candidates must gain one to two years of professional experience under the guidance of a licensed CPA. Some states also require specific tasks, such as audit or tax work, to be completed during this time, and they may have minimum hourly requirements.

Gaining relevant work experience not only fulfills a licensure requirement but also helps you develop practical skills in accounting and professional judgment. Consider roles in public accounting firms, corporate accounting departments, or government agencies.

State-Specific CPA Requirements

Each state’s state board of accountancy sets its own CPA requirements, which can vary significantly. Some states may have additional education requirements, accept alternative qualifications, or have unique rules regarding the type of work experience accepted. It’s crucial to check with your state’s board to understand the specific requirements you’ll need to meet. Here are some state board requirement examples:

• California: Requires specific accounting and ethics courses, including ten units in ethics and a course in accounting-related subjects like auditing, tax, or financial reporting. You can find out specifics here.
• New York: Mandates 33 semester hours in accounting, with specific course content covering areas like financial accounting, auditing, and taxation.
• Texas: Requires 24 semester hours in upper-level accounting, 24 hours in business courses, and an ethics course from a board-approved program.
• Florida: Requires 30 semester hours in accounting above the introductory level, 36 hours in general business courses, and 3 hours in ethics. Florida also has a “150 credit hour” rule to meet the educational requirements for licensure.
• North Carolina: Requires 30 semester hours of accounting coursework and 24 hours of business-related courses. The state also mandates a minimum of one year of work experience in accounting, auditing, or tax, all supervised by a licensed CPA.
• Missouri: Requires 150 total credit hours, including 33 semester hours in accounting and 27 hours in business-related courses. Missouri also requires a separate ethics exam, typically completed after passing the CPA exam.

Continuing Professional Education (CPE)

After earning your CPA license, you’ll be required to complete Continuing Professional Education (CPE) to keep it active. Most states require around 40 hours of CPE annually or 80 hours biennially, though this can vary depending on your state.

CPE courses for CPAs ensure that they stay updated on the latest developments in accounting standards, regulations, and best practices.

Conclusion

Embarking on the journey to become a CPA without a degree in accounting may seem daunting, but it’s entirely within reach. By fulfilling the educational requirements through alternative pathways, investing in quality CPA exam prep, and gaining the necessary work experience, you can achieve the esteemed CPA designation. Remember, the path may be unconventional, but with determination and careful planning, you can reach your goal.

Think of it like building a bridge to a new career. You might not have started on the traditional path, but with each course, exam, and experience, you’re laying down the planks that will carry you to the other side. So, are you ready to take the first step toward becoming a CPA without an accounting degree?

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