How to Get a CPA License: Requirements for Certification

Earning my CPA license was a game-changer—not only did it boost my career, but it opened doors to opportunities I hadn’t even considered.

Are you thinking about becoming a CPA yourself? You’d be joining over 672,000 licensed CPAs in the U.S. alone.

Here’s the reality:

Getting that CPA license takes commitment, from mastering the challenging exam to fulfilling specific state requirements. But if you’re ready to dive in, let’s break down the steps you’ll need to reach this powerful milestone in launching your accounting career.

Key Takeaways

• Education requirements: 150 semester hours are typically required, though some states allow candidates to sit for the CPA exam with 120 hours completed.
• Pass the CPA exam: Candidates complete three core sections (FAR, AUD, REG) and select one discipline section (BAR, ISC, or TCP) to demonstrate specialized knowledge.
• Work experience: Most states require CPA candidates to gain around two years of supervised, relevant experience with a licensed CPA.
• State-specific requirements: Each state may require additional ethics exams, specific coursework, or residency—check your state’s Board of Accountancy for details.
• Continuing education: CPA licensure means lifelong learning, so continuing professional education (CPE) credits are necessary to maintain an active license.

Education Requirements: 150 Semester Hours

The first step to getting your CPA license involves meeting specific education requirements, often around 150 semester hours. Most undergraduate accounting programs only provide about 120 hours, meaning CPA candidates may need additional courses. These upper-level business courses can be completed by taking extra classes or pursuing a master’s degree in accounting or business administration.

Choosing the Right Coursework

It’s essential to select courses that align with the Board of Accountancy’s guidelines. The required accounting and business courses include subjects like auditing, tax compliance, financial accounting, and possibly forensic accounting. In some states, students also need classes in business analysis and information systems, so you’ll want to plan your course load wisely. While a bachelor’s degree in accounting is the route most take, you can also become a CPA without an accounting degree.

Master’s Degree for CPA Licensure

Many CPA candidates choose a master’s in accounting or a related field to complete the extra semester hours required for CPA licensure. A master’s degree can also help provide deeper knowledge, opening up additional job opportunities and paving the way toward more specialized fields within accounting, like financial reporting or public accounting.

Passing the CPA Exam: Core and Discipline Sections

The CPA exam, known as the Uniform CPA Examination, has been restructured as of January 1, 2024, requiring all candidates to complete three core sections and select one discipline section. This updated structure allows candidates to demonstrate specialized knowledge in a specific area.

Core Sections

These sections are required for all CPA candidates:

• Financial Accounting and Reporting (FAR): Focuses on U.S. GAAP and IFRS standards, covering financial statement preparation for public, private, and governmental entities.
• Auditing and Attestation (AUD): Emphasizes data-driven auditing, with content on emerging technologies like data analytics and cybersecurity.
• Taxation and Regulation (REG): Includes federal tax laws, ethics, and business law, with updated content on post-2021 tax regulations and digital assets.

Discipline Sections

Candidates choose one of these sections:

• Business Analysis and Reporting (BAR): Covers financial statement analysis, including valuation techniques, and focuses on business performance evaluation.
• Information Systems and Controls (ISC): Concentrates on IT system controls, cybersecurity, and data privacy laws.
• Tax Compliance and Planning (TCP): Examines tax planning strategies, case-based scenarios, and estate planning.

Each section remains four hours long, consisting of multiple-choice questions (MCQs) and task-based simulations (TBSs). The weighting for MCQs and TBSs is 50/50 in all sections except ISC, which is weighted 60% for MCQs and 40% for TBSs. Skills are evaluated based on application and analysis rather than memorization, reflecting the shift to real-world, application-focused assessments.

CPA Exam Structure and Study Time

The CPA exam is known to be challenging. Most candidates spend about 100 hours preparing for each exam section, though the time needed can vary. When I was preparing to sit for the CPA exam, I clocked over 400 hours in total.

Courses such as Becker, Gleim, and other top CPA study materials can help break down complex topics through simulations and practice questions that mirror the actual CPA exam structure.

Exam Fees and Scoring

It’s good to know that CPA exam fees can add up, typically ranging from $1,000 to $1,500 for all CPA exam sections, depending on your state’s requirements. Each section of the exam requires a minimum score of 75 to pass. Achieving this score or higher is a milestone toward becoming a CPA, so give yourself the time and resources needed to succeed.

Gaining Work Experience with a Licensed CPA

Passing the CPA exam is only one piece of the puzzle. Another essential part is gaining practical experience under the guidance of a licensed CPA. Most states require CPA candidates to accumulate about two years of relevant experience in fields such as public accounting, auditing, or financial reporting.

During this supervised period, CPA candidates develop skills in reviewing financial records, preparing financial statements, and other hands-on tasks. This experience is also an opportunity to build critical thinking and communication skills. While the technical knowledge gained from your education is invaluable, the on-the-job experience makes sure you’re ready to apply that knowledge to real-life scenarios, whether in public accounting or other settings.

Examples of State-Specific CPA Requirements

While the CPA exam and general requirements are consistent across the board, each state has unique rules for obtaining a CPA license. Here are some state-specific examples of what might be required:

• California: Requires the PETH ethics exam, 10 hours in ethics courses, and 20 hours in accounting study as part of the 150-credit hour requirement.
• Texas: Mandates 30 hours of advanced accounting coursework, 24 hours in business, and a state-approved 3-hour ethics course. One year of supervised experience under a licensed CPA is also required.
• Florida: Allows candidates to take the CPA exam with 120 hours but requires 150 hours for licensure, including 24 hours each in accounting and business courses, plus a year of experience under a CPA.
• New York: Requires 150 hours, including 33 in accounting and 36 in business. One year of experience in public accounting under a CPA in New York is necessary, with no additional ethics exam.
• North Carolina: Candidates can sit for the exam with 120 hours but need 150 hours for licensure, including 30 hours in accounting. North Carolina CPA requirements include passing an ethics exam and completing a year of supervised experience.

Each Board of Accountancy has specific guidelines, so be sure to check your state’s requirements to stay on track.

Continuing Education and Maintaining Your CPA License

Congratulations! You’ve conquered the CPA exam, met the education and work requirements, and obtained your initial CPA license. But the journey doesn’t end there. Maintaining an active CPA status requires completing continuing professional education (CPE) credits. This ensures that CPAs stay up-to-date on changes in accounting standards, regulations, and best practices.

Most states require around 40 hours of CPE credits per year to keep your CPA license in good standing. These CPE requirements cover topics like ethics, financial accounting updates, and new developments in tax compliance. This ongoing education is a reminder that being a CPA involves a continuous commitment to excellence.

Conclusion

Earning your CPA license is a challenging but rewarding process. It requires dedication, extensive studying, and a drive to meet rigorous standards. But once you’re licensed, the opportunities are well worth it—from higher salaries to the respect of other accountants and professionals.

If you’re ready to embark on this path, remember to tackle each requirement one step at a time: complete your education, take the CPA exam, gain practical experience, and meet your state’s licensing requirements. With determination and focus, you can join the ranks of CPAs who make a difference in businesses, accounting firms, and government agencies across the country.

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