CPA Certification

Certified public accountants (CPAs) are specially licensed professionals who meet advanced practice standards. Licensed CPAs have elite technical accounting abilities, which they supplement with analytical insights, advisory services, and financial recommendations. Thanks to their versatile skill sets, CPAs are in strong demand among employers.

State-level accountancy boards issue CPA licenses. These boards are supported by the National Association of State Boards of Accountancy (NASBA), established in 1908 to uphold professional accounting standards. NASBA also administers the Uniform CPA Examination aspiring CPAs must pass to obtain their initial license.

NASBA's 2023 annual report acknowledged more than 672,000 licensed CPAs in the United States. Though some CPAs follow alternative paths, most begin their professional journeys by earning a bachelor's degree in accounting.

This guide explains the process of obtaining and maintaining CPA certification. It also explores the benefits of this optional but valuable professional designation and answers common questions about earning it.

Why Get Certified as a CPA?

How Do You Qualify for the CPA Credential?

Each state maintains its own unique qualification standards. However, three main eligibility requirements are common in all U.S. jurisdictions:

• Education. You must hold at least a bachelor's degree to qualify for CPA certification as a licensed professional.
• Experience. Most states require about 1-2 years of full-time work experience that regularly draws on one or more accounting proficiencies.
• Examination. You must pass the Uniform CPA Examination to earn your initial license.

Some states have additional requirements related to residency, citizenship, and/or possession of a valid Social Security number. While precise specifics vary among jurisdictions, the sections below explain core eligibility requirements in greater detail.

Educational Requirements

You must hold at least a bachelor's degree to earn CPA certification. Notably, most states do not explicitly require candidates to hold an accounting degree. However, many jurisdictions maintain minimum credit requirements for coursework in relevant academic subject areas.

States typically require 150 semester credits of postsecondary coursework for CPA licensure, but standard bachelor's degree programs usually cover about 120 credits. Aspiring CPAs can take additional electives, graduate-level classes, or specialized course sequences to bridge the gap.

Another option is to pursue an accelerated bachelor's-to-master's program in accounting. Schools specifically design these programs to meet the credit requirements for CPA licensure. A master's degree in accounting can help you build deeper expertise. Master's degree-holders also post higher pass rates on the Uniform CPA Examination.

Professional Requirements

CPA license-seekers must complete certain experience requirements. Specific standards vary by state, but most require future CPAs to have 1-2 years of full-time, paid work experience. States do not typically allow candidates to substitute additional education for professional experience.

Qualifying experiences include roles in which the candidate provides accounting, attestation, tax preparation, financial consultation, or advisory services. Candidates can obtain this experience in private industry, public practice, or government. Typically, work experience must be approved by an active, licensed CPA. Some states also recognize postsecondary teaching experience if it specifically involves accounting courses.

CPA Exam Requirements

As its name suggests, the Uniform CPA Examination is the standardized test all accounting professionals in the United States must pass to earn their CPA license. NASBA develops and administers the four-part exam, which underwent a significant update in 2024.

The updated version of the test features three core sections all examinees must take:

• Auditing and Attestation (AUD)
• Financial Accounting and Reporting (FAR)
• Taxation and Regulation (REG)

For their fourth section, examinees select one specialized discipline from three options:

• Business Analysis and Reporting (BAR)
• Information Systems and Controls (ISC)
• Tax Compliance and Planning (TCP)

To pass a section, you must score at least 75 points on a scale of 0-99. CPA candidates need to pass all four sections of their exam to qualify for licensure, but most states offer the option of taking sections individually.

What Is Needed to Maintain CPA Certification?

As with other aspects of CPA licensure, maintenance and renewal requirements vary by state. Most jurisdictions use annual or biannual renewal cycles. Licensees must also submit documentation indicating that they meet their state's continuing professional education (CPE) requirements.

CPE standards also differ among jurisdictions, but most require about 40 hours per year. Some states require CPAs to dedicate a minimum number of CPE hours to professional ethics courses during each renewal cycle.

CPAs may also be required to maintain active membership in the Association of International Certified Professional Accountants (AICPA) or similar professional organizations to qualify for renewal.

Should You Get Multiple Certifications?

CPA certification carries significant prestige and authority, and it functions well as a standalone credential. However, some CPAs elect to pursue other professional titles to complement their CPA licensure.

Examples include:

• Certified Fraud Examiner (CFE): These accounting professionals specialize in detecting financial fraud and other forms of white-collar crime. They often work with or for law enforcement agencies.
• Certified Internal Auditor (CIA): Internal auditors ensure that their employers' financial statements, documents, and disclosures meet applicable compliance laws and standards. Certification in this area signals dependable expertise.
• Certified Management Accountant (CMA): CMAs combine accounting skills with business management and strategic acumen. According to Payscale data from June 2024, these professionals earn an average base salary of $102,000 per year.

Frequently Asked Questions About CPAs

Page last reviewed June 27, 2024.