A felony conviction presents a substantial barrier to an accounting career, but it does not block the path entirely. Success depends heavily on the nature of the offense, the time elapsed since the conviction, and the regulatory environment of the state. While securing employment, especially with large firms or in licensed roles, presents significant challenges, the accounting profession offers viable career tracks. Navigating this landscape requires understanding regulatory differences and adopting a proactive, transparent approach.
Understanding the Difference Between an Accountant and a CPA
The accounting profession contains two distinct career paths defined by regulation and licensing. The title “accountant,” along with roles such as bookkeeper, tax preparer, or internal auditor, is generally unregulated at the state level. Individuals can pursue these positions based on their education, experience, and the hiring discretion of the employer, making entry significantly more accessible for those with a felony record.
The designation of Certified Public Accountant (CPA), conversely, is a professional license granted by a state board of accountancy. Becoming a CPA requires meeting rigorous educational and experience requirements, passing a four-part examination, and meeting the state’s ethical standards. This licensing requirement creates the primary obstacle for individuals with felony convictions because it introduces a mandatory review by a government body that assesses character and fitness to practice.
Navigating the Job Search with a Felony Record
The journey to securing an accounting job often involves a background check that screens for a criminal history, and company policies vary widely. Large public accounting firms and organizations in the highly regulated financial sector, such as banks or public companies, frequently maintain strict zero-tolerance policies regarding felony convictions. These organizations often have heightened compliance concerns, including those stemming from the Sarbanes-Oxley Act (SOX), which imposes strict internal control requirements on public companies and auditors.
The nature of the offense is a primary factor in the hiring decision, as employers are most wary of crimes involving fraud, theft, or breach of trust. A non-financial felony, such as a drug offense or a crime of violence, may be viewed with less immediate alarm than embezzlement or tax evasion, especially if the conviction is old. Job seekers may find more success targeting small to mid-sized private companies or firms that are not subject to the strict regulatory oversight of publicly traded entities. These employers may be more willing to consider a candidate’s qualifications and rehabilitation history on a case-by-case basis.
Strategies for employment often involve targeting “felony-friendly” companies and being transparent about the conviction early in the process, typically after an initial interview. Highlighting a strong educational record, demonstrating relevant skills, and providing personal references that attest to current character can help mitigate the concerns raised by the criminal record. The goal is to shift the employer’s focus from the past offense to the candidate’s current professional competence and commitment to a clean record.
The Critical Role of State CPA Licensing Boards
Pursuing the CPA designation introduces a mandatory review by the State Board of Accountancy, which holds the final authority over granting the license. Because the CPA license is state-regulated, the specific rules and application of those rules vary significantly from one jurisdiction to the next. All applicants for a license must disclose all felony convictions to the board, regardless of the crime’s age or nature.
Defining “Good Moral Character”
State licensing statutes uniformly require applicants to demonstrate “good moral character” or “fitness to practice.” Boards interpret this requirement by focusing on whether the felony is “substantially related” to the duties of a public accountant. Convictions for crimes like embezzlement, fraud, forgery, tax evasion, or financial misconduct are generally considered to be directly related to the integrity and trustworthiness required of the profession. Non-financial felonies, such as certain drug offenses or crimes of violence, are often treated less severely, though they still require a review to ensure the applicant does not pose a risk to the public.
The Application Process and Disclosure
Applicants must provide a full and honest disclosure of their criminal history, including court documents and a detailed explanation of the circumstances. Some state boards offer a preliminary review process, which allows an individual to determine their eligibility before investing the substantial time and resources required for the education and examination process. This preliminary determination provides clarity on whether the felony will be a permanent bar or if the board will require specific conditions for licensure. Failing to disclose a conviction is considered an act of dishonesty and can be an independent basis for permanent denial of the license.
Factors Boards Consider During Review
When reviewing an application from an individual with a felony, boards consider several mitigating factors to assess rehabilitation. The time elapsed since the conviction and the completion of the entire sentence, including parole and probation, are two important considerations. Boards also evaluate the nature and severity of the crime, the applicant’s age at the time of the offense, and the extent of any restitution paid to victims. Evidence of successful rehabilitation, such as academic achievement, steady employment, and character references from employers or community leaders, is used to demonstrate fitness to practice.
Practical Steps to Build a Successful Accounting Career
Individuals with a felony conviction can take specific, proactive steps to improve their employment and licensure prospects. One strategy is to pursue professional certifications that are less regulated than the CPA license. Credentials like the Certified Management Accountant (CMA), which focuses on corporate finance and internal reporting, or the Certified Internal Auditor (CIA), which deals with internal controls and risk management, are valuable alternatives. The organizations that administer these certifications, such as the Institute of Management Accountants (IMA) for the CMA, have their own ethical standards and require disclosure of felonies, but they do not operate under the same state-mandated “good moral character” review as the CPA boards.
Proactive legal steps, such as seeking expungement or sealing of the criminal record, can be beneficial, though the effect varies. While some state CPA boards may still require disclosure of expunged records, an expungement can significantly improve a candidate’s standing with private employers during a standard background check. Networking within the profession and obtaining strong character references from professors, current supervisors, or mentors is also essential to overcome the inherent trust concerns associated with a past felony conviction.