Under the Sarbanes-Oxley Act, which was passed in 2002, accountants were subject to tougher restrictions about their consulting assignments. Renamed several times over the years, the organization has been known as the American Institute of Certified Public Accountants (AICPA) since 1957. While this isn’t a CPA Exam requirement, all states and territories do have an experience requirement to gain licensure. Most states require CPAs to have one to two years of experience, though not necessarily in public accounting. Logan Allec is a CPA and the founder of tax relief company Choice Tax Relief, where he represents individuals and businesses who owe significant back taxes to the IRS or their state. He is also an expert in discreetly helping those who have gotten behind on their tax filings get back in compliance.

  • It’s not easy, but the steps to becoming a CPA are straightforward, as we’ll discuss shortly.
  • Historical pass rates sit around 50% for each of the four sections on the CPA exam.
  • As a certified public accountant, you’ll have the opportunity to work with individuals and businesses in various industries, advising on financial and tax-related matters.
  • But the CPA licenses they offer in these situations restrict how you can hold yourself out as a CPA.
  • After you have completed and passed all of your educational and testing requirements, you will be able to start working towards obtaining your license.
  • But within 36 months, candidates must complete additional hours to reach 150.

The U.S. CPA license is issued at the US state or jurisdiction level. Non-US resident CPA candidates who meet the board of accountancy CPA eligibility requirements in one of the 55 US jurisdictions will qualify as US CPAs. All jurisdictions require aspiring CPAs to have 120 or 150 credit hours to sit for the exam, depending on the jurisdiction, and 150 credit hours for licensure. Candidates generally need at least 24 semester hours in accounting, but some states allow fewer than 24 semester hours. The CPA exam consists of four sections, testing candidates on topics like taxation, financial planning, auditing and accounting technology. Regardless of which category you belong to, Intuit will provide additional resources to support your professional development.

What is a CPA?

And last but certainly not least, you’ll want to update your resume and celebrate your new status as a CPA. Certified public accountants are in demand and often more educated than general accountants, but they work long hours, especially during tax time, if they work in taxation. The higher salaries often mean more responsibilities at work, which could cause stress, but it depends on the individual. All four companies offer tax and management consulting, legal advisory services, valuation, market research, and assurance.

  • How long it takes to pass the CPA exam is totally dependent on you.
  • You can, however, state that you’ve passed the exam and are fulfilling the other requirements.
  • The CPA Exam is a comprehensive test composed of four sections, given individually, over a total of 16 hours, and must be completed within an 18-month window.
  • It’s great to start off the exam on a high note with material you know best while you gain experience in exam format.

Applicants must obtain that experience within a specified time frame. Before you can obtain the official CPA title, you will need to work under a licensed CPA, with the amount of time required varying from state to state. In most places, you have to work 1-2 years in the field before you can be licensed. To become a CPA, there are several things you will have to do to gain your license, including schooling and relevant job experience. When it comes to the length of time it will take to get your CPA, you should expect to commit about 7 years of time to earn your license. To maintain an active AICPA membership, you must also fulfill the organization’s CPE requirements.

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NASBA lists licensing requirements for each U.S. jurisdiction on its website. Familiarize yourself with your state’s specific standards early in the process to ensure you don’t miss any steps. If you’re not sure where to start with your accounting calculate the debt service coverage ratio degree search, see our ranking of the best online accounting degrees. While all states require you to pass an exam to become a CPA, other standards may vary by state. We’ll go into these in more detail in the next section of this article.

College or University Study for the Accounting Degree

Many jurisdictions also stipulate that aspiring CPAs complete credits in related areas, such as economics, finance, business administration, and/or business management. Since the typical bachelor’s degree program majoring in accounting only consists of 120 credit hours, you will need to enroll in advanced studies before you can test. You may not need to possess a master’s, but beginning an Master’s in Accounting program will be necessary to meet the new more strict testing requirements. A certified public accountant (CPA) is an accounting professional who has passed the rigorous CPA exam and fulfilled all the requirements for education and work experience in the state of licensure. In most states, a bachelor’s degree with a minimum 150 credits, is required to sit for the exam. After earning your bachelor’s degree, you can meet the 150-credit requirement by pursuing a master’s in accounting or taking graduate-level courses in related subjects.

The average tuition and fees for an in-state student at a public university was $10,230 for the 2018 to 2019 academic year. For an out-of-state student at a public university, the cost was $26,290. The cost for room and board, books, transportation and miscellaneous expenses can double those totals – so be sure to take those costs into consideration. As of April 1, 2017, AICPA launched a new version of the Uniform CPA Exam. This updated version is the result of comprehensive research and places an increased emphasis on critical thinking, analytical ability, problem-solving and professional skepticism. The length of the exam increased from 14 to 16 hours with additional Task Based Simulations for each of the four sections.

CPA Requirements by State: Complete Guide to the CPA Exam Requirements

If your state requires the ethics exam, it is typically taken after passing the CPA Exam. Virgin Islands has 2 paths to CPA licensure that do not specify a certain number of required accounting courses. Instead, these options substitute higher levels of work experience for the presence of particular accounting education hours. How long it takes to become a licensed CPA depends on personal circumstance.

The sections below explain licensure, credentialing, and continuing education processes for aspiring CPAs. For those wondering how to become a 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. Certified public accountant (CPAs) typically earn above-average salaries and enjoy strong demand in the job market.

Do you lack experience but still want to become a tax or bookkeeping professional? Our innovative learning initiative, the Intuit Academy, will provide you with the necessary skills to start working in the field and boost your income in no time. However, some are former CPAs with advanced business administration or financial management degrees and experience. These C-suite professionals supervise and direct their organization’s financial activities. Financial controllers head accounting departments in private enterprises.

In Minnesota, for example, you have three years after you pass the exam to meet all requirements and submit your license application. If you are an accountant, you’ll find a CPA salary is higher, and this designation will enhance your role. Holding a CPA license opens doors to various and well-paying careers.