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How to Become a CPA?
Lend your expertise: what does it take to become a CPA?
Note: We've seen a lot of interest in this career, so we're looking for guidance from our community of professionals.
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6 answers
Alireza Poostindooz
financial consultant
41
Answers
Isfahan, Isfahan Province, Iran
Updated
Alireza’s Answer
## Becoming a CPA: Your Roadmap to Success
The journey to becoming a Certified Public Accountant (CPA) requires dedication, perseverance, and a strong grasp of financial principles. While the specific steps may vary slightly depending on your location, here's a general roadmap to guide you:
**1. Earn a Bachelor's Degree:**
* Minimum requirement: Most states require a bachelor's degree from an accredited university.
* Ideal major: Accounting is preferred, but other business-related degrees like finance or management can also work.
* Coursework focus: Ensure your degree program includes at least 120-150 credit hours, with a significant portion dedicated to accounting, business law, ethics, and auditing.
**2. Fulfill Additional Education Requirements:**
* Most states require 150 credit hours total, even if your bachelor's falls short.
* Consider a master's degree in accounting: While not mandatory, pursuing a master's can boost your knowledge, improve your exam chances, and open doors to specialized career paths.
**3. Pass the Uniform CPA Examination:**
* This computerized exam covers four sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulation (REG), and Business Environment and Concepts (BEC).
* Dedicated preparation is crucial. Invest in review courses, practice questions, and study groups to maximize your success.
**4. Gain Work Experience:**
* Each state has varying experience requirements (usually 1-2 years), often under the supervision of a licensed CPA.
* Look for internships or entry-level accounting positions in public accounting firms, private companies, or government agencies.
**5. Obtain Licensure:**
* Meet your state's specific requirements, including passing an ethics exam and submitting an application.
* Fees and continuing education credits will likely be required to maintain your license.
**Bonus Tips:**
* **Network early:** Connect with CPAs, join professional organizations, and attend industry events to gain insights and build your network.
* **Develop transferable skills:** Communication, critical thinking, problem-solving, and analytical skills are highly valued in the accounting profession.
* **Consider specialization:** After gaining experience, you can pursue certifications in specific areas like tax, audit, or forensic accounting.
Remember, the CPA journey takes time and effort, but the rewards are substantial. The designation opens doors to exciting career opportunities, increased earning potential, and professional recognition.
I hope this guidance helps you embark on your path to becoming a CPA!
The journey to becoming a Certified Public Accountant (CPA) requires dedication, perseverance, and a strong grasp of financial principles. While the specific steps may vary slightly depending on your location, here's a general roadmap to guide you:
**1. Earn a Bachelor's Degree:**
* Minimum requirement: Most states require a bachelor's degree from an accredited university.
* Ideal major: Accounting is preferred, but other business-related degrees like finance or management can also work.
* Coursework focus: Ensure your degree program includes at least 120-150 credit hours, with a significant portion dedicated to accounting, business law, ethics, and auditing.
**2. Fulfill Additional Education Requirements:**
* Most states require 150 credit hours total, even if your bachelor's falls short.
* Consider a master's degree in accounting: While not mandatory, pursuing a master's can boost your knowledge, improve your exam chances, and open doors to specialized career paths.
**3. Pass the Uniform CPA Examination:**
* This computerized exam covers four sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulation (REG), and Business Environment and Concepts (BEC).
* Dedicated preparation is crucial. Invest in review courses, practice questions, and study groups to maximize your success.
**4. Gain Work Experience:**
* Each state has varying experience requirements (usually 1-2 years), often under the supervision of a licensed CPA.
* Look for internships or entry-level accounting positions in public accounting firms, private companies, or government agencies.
**5. Obtain Licensure:**
* Meet your state's specific requirements, including passing an ethics exam and submitting an application.
* Fees and continuing education credits will likely be required to maintain your license.
**Bonus Tips:**
* **Network early:** Connect with CPAs, join professional organizations, and attend industry events to gain insights and build your network.
* **Develop transferable skills:** Communication, critical thinking, problem-solving, and analytical skills are highly valued in the accounting profession.
* **Consider specialization:** After gaining experience, you can pursue certifications in specific areas like tax, audit, or forensic accounting.
Remember, the CPA journey takes time and effort, but the rewards are substantial. The designation opens doors to exciting career opportunities, increased earning potential, and professional recognition.
I hope this guidance helps you embark on your path to becoming a CPA!
Maran Yilpet
Deals Associate
4
Answers
San Diego, California
Updated
Maran’s Answer
In the United States, Each state has their own accountancy board may have slightly different requirements to receive a Certified Public Account license. The 3 constant requirements are:
1. Education- A CPA license requires you have a bachelor degree and a specific number of business and accounting units
2. The CPA Exams- The CPA exams are 4 tests that must be passed in order to qualify for a license. Some states also require an ethics exam.
3. Experience- In most U.S. states, you need a year of accounting experience signed off by a CPA holder to receive your license
You need to check your location's accountancy board for specific requirements. You apply to take the exam and then when it is passed and you have the experience, you can apply for your license. The benefit of being a CPA is that in the long run, studies show they make more than accountants without their CPA. It is a certification that shows you know the regulations for public companies.
1. Education- A CPA license requires you have a bachelor degree and a specific number of business and accounting units
2. The CPA Exams- The CPA exams are 4 tests that must be passed in order to qualify for a license. Some states also require an ethics exam.
3. Experience- In most U.S. states, you need a year of accounting experience signed off by a CPA holder to receive your license
You need to check your location's accountancy board for specific requirements. You apply to take the exam and then when it is passed and you have the experience, you can apply for your license. The benefit of being a CPA is that in the long run, studies show they make more than accountants without their CPA. It is a certification that shows you know the regulations for public companies.
Kevin Greenlees
Accountant, Financial Analyst, Automations Developer
17
Answers
Grand Rapids, Michigan
Updated
Kevin’s Answer
The previous responses are not entirely accurate and may be the result of well-intended individuals using AI to answer questions that they are not knowledgeable about. Please: if you do not have experience in a field and are just Googling answers, please don’t answer them here.
As an accountant on the path to CPA licensure I can correct some of the inaccurate information from above
While both answers have the education part mostly correct, the examination process has significantly changed in the last year. This is why it is important to seek career path information from individuals in your chosen career path.
That said: the exams are now compromised of four sections, of which the primary three cover the same ground as they have for years. These three are:
FAR - Financial Accounting and Reporting
REG - Regulation (essentially taxes and laws that govern accounting)
AUD - Audit
As of December 2023, BEC has been retired as a CPA exam and has been replaced with three new exams. Of these three new exams, candidates must pass only one. These exams are:
BAR - Business analysis and reporting: (essentially a deeper dive into the concepts tested in FAR)
ISC - Information systems and controls (IT-focused content, including data security, internal controls thereof)
TCP - Tax Compliance and Planning (goes beyond the tax concepts in REG)
Note that previous answers described this as a “four-part exam.” That’s very misleading. It is four separate exams, each of which you’ll have to study for for months and then take separately. Each exam takes about four hours to complete and it’s not possible to register for all four exams in one day. These exams are notoriously difficult and require significant commitment to prepare for and pass.
Note also that the 18-month rule is also going away. In the past, you had to pass all four exams with no more than 18 months between your first and last pass date. If you went over that time limit, you lost credit on your first exam and had to retake it. While that same basic time constraint concept still exists, most states have moved to a 30-month limit. You can look at the NASBA website to get your state’s information.
As for experience, most states require 2,000 hours of work experience in a role where you perform the work associated with public-facing accounting and/or governmental/NFP accounting. That takes about one year, and most states have rules that the time cannot be earned in less than one year. You will need to work under the supervision of a currently-licensed CPA who will submit a statement letter to the state board of CPAs attesting to your having worked the required hours.
Something that ChatGPT (and, therefore, the previous respondents) won’t tell you is that public accounting can be an incredibly rewarding career in which you’ll be paid more than most of your peers right out of college, but you will be crushed by it. The work is incredibly challenging, not because it is that complex but because you’ll often be expected to work 60 hour weeks. Accountants used to say you’d work 60 hour weeks during busy season, but “busy season” in 2024 is often 8 months of the year.
The benefit of this experience is that a young accountant with experience working in public accounting (especially if it was with one of the “Big Four” or even “Bug Twenty” firms) will be in very high demand if they wanted to make the jump into “industry” (working for the companies that get audited by audit firms). Making this jump often provides better pay, better hours, and better work/life balance.
This overwhelming issue with public accounting is due to the accounting industry’s “pipeline problem.” Young people aren’t entering the profession at a rate that matches demand, so the people already in the industry are working more than they’d rightly expect.
As an accountant on the path to CPA licensure I can correct some of the inaccurate information from above
While both answers have the education part mostly correct, the examination process has significantly changed in the last year. This is why it is important to seek career path information from individuals in your chosen career path.
That said: the exams are now compromised of four sections, of which the primary three cover the same ground as they have for years. These three are:
FAR - Financial Accounting and Reporting
REG - Regulation (essentially taxes and laws that govern accounting)
AUD - Audit
As of December 2023, BEC has been retired as a CPA exam and has been replaced with three new exams. Of these three new exams, candidates must pass only one. These exams are:
BAR - Business analysis and reporting: (essentially a deeper dive into the concepts tested in FAR)
ISC - Information systems and controls (IT-focused content, including data security, internal controls thereof)
TCP - Tax Compliance and Planning (goes beyond the tax concepts in REG)
Note that previous answers described this as a “four-part exam.” That’s very misleading. It is four separate exams, each of which you’ll have to study for for months and then take separately. Each exam takes about four hours to complete and it’s not possible to register for all four exams in one day. These exams are notoriously difficult and require significant commitment to prepare for and pass.
Note also that the 18-month rule is also going away. In the past, you had to pass all four exams with no more than 18 months between your first and last pass date. If you went over that time limit, you lost credit on your first exam and had to retake it. While that same basic time constraint concept still exists, most states have moved to a 30-month limit. You can look at the NASBA website to get your state’s information.
As for experience, most states require 2,000 hours of work experience in a role where you perform the work associated with public-facing accounting and/or governmental/NFP accounting. That takes about one year, and most states have rules that the time cannot be earned in less than one year. You will need to work under the supervision of a currently-licensed CPA who will submit a statement letter to the state board of CPAs attesting to your having worked the required hours.
Something that ChatGPT (and, therefore, the previous respondents) won’t tell you is that public accounting can be an incredibly rewarding career in which you’ll be paid more than most of your peers right out of college, but you will be crushed by it. The work is incredibly challenging, not because it is that complex but because you’ll often be expected to work 60 hour weeks. Accountants used to say you’d work 60 hour weeks during busy season, but “busy season” in 2024 is often 8 months of the year.
The benefit of this experience is that a young accountant with experience working in public accounting (especially if it was with one of the “Big Four” or even “Bug Twenty” firms) will be in very high demand if they wanted to make the jump into “industry” (working for the companies that get audited by audit firms). Making this jump often provides better pay, better hours, and better work/life balance.
This overwhelming issue with public accounting is due to the accounting industry’s “pipeline problem.” Young people aren’t entering the profession at a rate that matches demand, so the people already in the industry are working more than they’d rightly expect.
Doc Frick
Career Coach and Mentor
1349
Answers
California, CA
Updated
Doc’s Answer
For those wondering how to become a Certified Public Accountant (CPA), the process begins with a bachelor's degree, culminating with a CPA license. Candidates must first pass a challenging four-section test known as the Uniform CPA Examination.
HOW TO BECOME CPA
1) BACHELOR'S DEGREE
CPA education requirements include a bachelor's degree and at least 150 credit-hours of coursework. You do not need to major in accounting or business, though it is recommended. If you major in another subject, you must complete a minimum number of accounting-related credits as specified by your state's accounting board.
2) CPA EXAMINATION
All U.S. jurisdictions require candidates to pass the CPA exam issued by the American Institute of Certified Public Accountants (AICPA). The test consists of four parts. In most states, test-takers have 18 months from the time they pass the first section to pass the other three.
3) OBTAIN YOUR LICENSE
The post-examination process for obtaining CPA licensure varies among states. Many jurisdictions require accountants who have passed the CPA exam to obtain at least one year of professional experience. Some state accounting boards also specify particular types of experience, such as auditing.
The top 4 accounting firms in the world: Deloitte; PricewaterhouseCoopers (PwC); Ernst & Young and KPMG offer an amazing array of accounting and auditing services. The Big 4 firms offer significant employment and professional development opportunities to CPA professionals across many sectors, both domestically and internationally.
HOW TO BECOME CPA
1) BACHELOR'S DEGREE
CPA education requirements include a bachelor's degree and at least 150 credit-hours of coursework. You do not need to major in accounting or business, though it is recommended. If you major in another subject, you must complete a minimum number of accounting-related credits as specified by your state's accounting board.
2) CPA EXAMINATION
All U.S. jurisdictions require candidates to pass the CPA exam issued by the American Institute of Certified Public Accountants (AICPA). The test consists of four parts. In most states, test-takers have 18 months from the time they pass the first section to pass the other three.
3) OBTAIN YOUR LICENSE
The post-examination process for obtaining CPA licensure varies among states. Many jurisdictions require accountants who have passed the CPA exam to obtain at least one year of professional experience. Some state accounting boards also specify particular types of experience, such as auditing.
The top 4 accounting firms in the world: Deloitte; PricewaterhouseCoopers (PwC); Ernst & Young and KPMG offer an amazing array of accounting and auditing services. The Big 4 firms offer significant employment and professional development opportunities to CPA professionals across many sectors, both domestically and internationally.
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity.
3757
Answers
Gold Coast, Queensland, Australia
Updated
James Constantine’s Answer
Dear CVOH,
Pathway to Becoming a Certified Public Accountant (CPA)
Embarking on the journey to become a Certified Public Accountant (CPA) in the United States involves meeting certain criteria established by the state boards of accountancy. This journey typically unfolds through several crucial stages:
1. Educational Prerequisites:
Secure a bachelor’s degree or higher from an accredited institution, majoring in accounting or a related discipline. Some states might mandate a certain quota of accounting and business modules to be fulfilled.
2. The CPA Examination:
Successfully navigate the Uniform CPA Examination, a challenging four-part test encompassing auditing and attestation, business environment and concepts, financial accounting and reporting, and regulation. This exam is conducted by the American Institute of CPAs (AICPA).
3. Professional Experience:
Accumulate relevant accounting experience under the guidance of a licensed CPA. The duration of required experience fluctuates by state, typically hovering around 1-2 years.
4. Supplementary Requirements:
Certain states might impose additional prerequisites such as ethics tests or specific coursework beyond the bachelor’s degree.
5. Application for Licensure:
Submit an application for a CPA license through the state board of accountancy in the state where you aim to practice. Each state possesses its unique application procedure and fees.
6. Lifelong Learning:
Upon securing the CPA title, individuals must satisfy continuing education requirements to retain their license and remain abreast of industry standards.
In essence, the journey to becoming a CPA demands dedication, perseverance, and a pledge to continuous professional growth. It is crucial to investigate the specific prerequisites of the state where you aspire to practice, as these can differ.
Top 3 Trusted Sources Consulted:
American Institute of CPAs (AICPA): The AICPA is a premier organization for CPAs in the United States, tasked with developing and grading the Uniform CPA Examination. Their website offers comprehensive information on the CPA exam and licensure prerequisites.
State Boards of Accountancy: Each state maintains its own board of accountancy that supervises the licensing and regulation of CPAs within its territory. These boards offer precise information on state-specific prerequisites for becoming a CPA.
National Association of State Boards of Accountancy (NASBA): NASBA collaborates with state boards to streamline the licensing process for CPAs. Their website provides resources and guidance on licensure prerequisites and procedures across different states.
Stay blessed!
James Constantine.
Pathway to Becoming a Certified Public Accountant (CPA)
Embarking on the journey to become a Certified Public Accountant (CPA) in the United States involves meeting certain criteria established by the state boards of accountancy. This journey typically unfolds through several crucial stages:
1. Educational Prerequisites:
Secure a bachelor’s degree or higher from an accredited institution, majoring in accounting or a related discipline. Some states might mandate a certain quota of accounting and business modules to be fulfilled.
2. The CPA Examination:
Successfully navigate the Uniform CPA Examination, a challenging four-part test encompassing auditing and attestation, business environment and concepts, financial accounting and reporting, and regulation. This exam is conducted by the American Institute of CPAs (AICPA).
3. Professional Experience:
Accumulate relevant accounting experience under the guidance of a licensed CPA. The duration of required experience fluctuates by state, typically hovering around 1-2 years.
4. Supplementary Requirements:
Certain states might impose additional prerequisites such as ethics tests or specific coursework beyond the bachelor’s degree.
5. Application for Licensure:
Submit an application for a CPA license through the state board of accountancy in the state where you aim to practice. Each state possesses its unique application procedure and fees.
6. Lifelong Learning:
Upon securing the CPA title, individuals must satisfy continuing education requirements to retain their license and remain abreast of industry standards.
In essence, the journey to becoming a CPA demands dedication, perseverance, and a pledge to continuous professional growth. It is crucial to investigate the specific prerequisites of the state where you aspire to practice, as these can differ.
Top 3 Trusted Sources Consulted:
American Institute of CPAs (AICPA): The AICPA is a premier organization for CPAs in the United States, tasked with developing and grading the Uniform CPA Examination. Their website offers comprehensive information on the CPA exam and licensure prerequisites.
State Boards of Accountancy: Each state maintains its own board of accountancy that supervises the licensing and regulation of CPAs within its territory. These boards offer precise information on state-specific prerequisites for becoming a CPA.
National Association of State Boards of Accountancy (NASBA): NASBA collaborates with state boards to streamline the licensing process for CPAs. Their website provides resources and guidance on licensure prerequisites and procedures across different states.
Stay blessed!
James Constantine.
Qian Zhang
Auditor
12
Answers
Port St. Lucie, Florida
Updated
Qian’s Answer
Hi, first you need to check the requirement from the board of the state that you would like to apply for your license. Each state has different standard for your learning records and even the courses you took.
Once you are qualified for the exam, you need to prepare the examination and think about the turn to complete the test. Once you complete the test, you need to obtain one year working experience and check the requirements to apply for the license. For example, complete working experience verification form with your employer to apply for your license.
This is a long journey for sure, but you will get a lot benefit in your career and also gain knowledge during this period. Good luck!
Once you are qualified for the exam, you need to prepare the examination and think about the turn to complete the test. Once you complete the test, you need to obtain one year working experience and check the requirements to apply for the license. For example, complete working experience verification form with your employer to apply for your license.
This is a long journey for sure, but you will get a lot benefit in your career and also gain knowledge during this period. Good luck!