A Certified Public Accountant (CPA) license grants an accountant the authority to perform regulated functions, such as auditing public company financial statements. This licensure signifies technical competence, ethical understanding, and professional experience, and it is governed by state boards of accountancy across the U.S. An Associate’s Degree alone does not meet the minimum educational requirements for CPA licensure in any United States jurisdiction. While it serves as a strong foundation, it represents only the initial phase of the educational journey required for the CPA credential.
The Foundational Educational Requirement for CPA Licensure
The primary educational requirement for CPA licensure is the “150-hour rule,” adopted by all U.S. jurisdictions. This standard mandates that a candidate must complete 150 semester hours of college education, which is 30 hours more than the typical four-year Bachelor’s Degree. This requirement ensures candidates possess the necessary understanding of business and accounting principles.
The 150-hour requirement includes a specified minimum number of accounting and business credits. While exact requirements vary by state, candidates typically need 24 to 36 semester hours in accounting and auditing subjects. They also need 24 or more semester hours in general business subjects, such as business law, economics, finance, and information systems.
The Associate’s Degree, consisting of approximately 60 credit hours, falls short of the 150-hour mandate. Many states allow candidates to sit for the CPA Examination with a Bachelor’s Degree (120 credit hours), but require the full 150 hours for the actual license. The additional 30 credit hours provide the technical depth and broader business perspective necessary for the CPA.
Bridging the Educational Gap from an Associate’s Degree
An Associate’s Degree holder has several pathways to satisfy the 150-hour requirement. The most direct route involves transferring credits into a four-year Bachelor’s degree program. This allows the candidate to complete the remaining 60 to 70 credits needed for the 120-hour degree, which is a prerequisite for nearly all paths to CPA licensure.
After earning the Bachelor’s degree, candidates must acquire the final 30 credit hours to reach the 150-hour threshold. One option is to enroll in a Master of Accountancy (MAcc) program or an MBA with an accounting concentration. These graduate programs efficiently provide the necessary advanced accounting coursework while accumulating the remaining credits.
Alternatively, candidates can obtain the final 30 credits through post-baccalaureate coursework at a college, university, or online institution. This method is often more cost-effective and provides flexibility, allowing the candidate to target specific accounting or business credits required by their state board. This approach is useful for individuals who earned a Bachelor’s degree in a non-accounting field.
Passing the Uniform CPA Examination
The Uniform CPA Examination is a four-part assessment that tests technical knowledge and professional judgment. The examination includes three core sections that all candidates must pass: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG). The fourth section is a discipline exam, where candidates choose one of three specializations:
- Business Analysis and Reporting (BAR)
- Information Systems and Controls (ISC)
- Tax Compliance and Planning (TCP)
Each of the four sections is a four-hour exam, and candidates must achieve a minimum score of 75 on each part. Candidates must pass all four sections within a rolling 18-month window. If a candidate fails to pass the remaining sections within that timeframe, credit for the first passed section will expire, requiring it to be retaken.
Gaining Required Professional Experience
The third requirement for CPA licensure is the demonstration of relevant professional experience. Almost all states require candidates to complete one to two years of supervised, qualified accounting work experience, typically between 1,750 and 2,000 hours. This experience must be completed before a license is issued.
The experience must be obtained under the direct supervision of a currently licensed CPA, who verifies the work to the state board. The work must involve accounting, attest, tax, or consulting skills. It must be of a sufficiently high level to prepare the candidate for the responsibilities of a CPA. This requirement often occurs concurrently with or immediately following the successful completion of the CPA Examination.
Other State-Specific Licensing Requirements
Beyond the standardized education, examination, and experience requirements, candidates must satisfy ethical requirements specific to the state board issuing the license. Many jurisdictions require candidates to pass a separate Ethics examination, which may be a standardized test or a state-specific course. This ensures the candidate understands the profession’s ethical standards and rules of professional conduct.
Additional requirements often include a formal background check, which may involve fingerprinting and a review of the applicant’s moral character. While many states have relaxed residency requirements, candidates must ensure they meet all application deadlines outlined by their state board of accountancy. Consulting the National Association of State Boards of Accountancy (NASBA) or the specific state board website is necessary to confirm local requirements.
Accounting Career Paths Without CPA Licensure
For individuals who choose not to pursue CPA licensure after their Associate’s or Bachelor’s degree, career paths remain available within the accounting and finance sectors. An Associate’s Degree qualifies individuals for entry-level positions such as Accounting Clerk, Bookkeeper, or Payroll Specialist. These roles focus on fundamental transaction processing, record-keeping, and general ledger maintenance.
With a Bachelor’s degree, individuals can qualify for roles like Staff Accountant, Tax Preparer, or Accounting Analyst, which involve more complex financial reporting and analysis. These positions offer a strong career trajectory even without the CPA credential. Many professionals in industry or government accounting thrive in these roles, finding rewarding careers without the extensive educational and examination demands of licensure.