A bachelor’s degree is generally not enough to earn the Certified Public Accountant (CPA) license. While the four-year degree is a prerequisite and provides foundational knowledge, it typically falls short of the full educational requirements for licensure. Achieving CPA status requires candidates to satisfy three distinct pillars established by state regulatory boards: education, examination, and verifiable professional experience. These requirements ensure that licensed CPAs possess the necessary theoretical knowledge and practical judgment for public protection.
The Educational Requirement: The 150-Hour Rule
The requirement to complete 150 semester hours of education is the national standard adopted by most state boards of accountancy. Since a typical bachelor’s degree comprises about 120 semester hours, this rule mandates an additional 30 semester hours, or the equivalent of one full academic year, of post-baccalaureate study. This standard ensures that future CPAs possess a well-rounded business perspective beyond specialized accounting topics. CPAs must understand the broader economic, legal, and technological environments in which their clients operate.
State boards mandate a specific breakdown of subjects, not just 150 hours of any coursework. Candidates must complete a minimum number of accounting credits, typically 20 to 30 semester hours, covering financial accounting, auditing, taxation, and governmental accounting. These courses provide the technical expertise needed for core professional functions. Additionally, 18 to 30 hours of general business credits are required, including subjects like economics, finance, business law, and information systems. The specific combination of accounting and business credits is determined by the state board where the candidate seeks licensure.
Paths to Meeting the 150-Hour Requirement
After satisfying the four-year degree requirements, prospective CPAs must plan how to complete the remaining 30-hour educational gap. The most common route is pursuing a specialized graduate degree, such as a Master of Accountancy (MAcc). A MAcc program is designed to meet the 150-hour educational requirements while providing advanced study in technical accounting areas. This focused curriculum prepares candidates for the examination and often offers a direct pathway into public accounting firms.
Other Educational Options
Candidates have several other options for completing the required 30 hours:
- Enrolling in a Master of Business Administration (MBA) program, often with an accounting concentration, which provides a broader management and leadership skill set.
- Pursuing a post-baccalaureate certificate program, a non-degree path focused on delivering the required upper-level accounting and business credits quickly and affordably.
- Taking additional undergraduate courses at a four-year institution, which is typically the least expensive per credit hour but may require more time.
Candidates must confirm with their state board that credits obtained through community colleges or distance learning programs will be accepted, as these institutions must be regionally accredited. Careful planning is necessary to ensure the chosen credits fulfill the specific accounting and business course mandates.
The CPA Examination Process
Once the educational requirements are met, or substantially underway in some states, the candidate must focus on passing the Uniform CPA Examination. This examination is administered in four separate sections, each testing a distinct body of professional knowledge. The four core sections are Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG), which covers federal taxation and business law. Success on this comprehensive exam demands extensive preparation, often requiring hundreds of hours of dedicated study.
Candidates must apply to their state board to confirm eligibility before scheduling any of the four sections. Upon approval, the board issues a Notice to Schedule (NTS), required to book a testing appointment at an authorized Prometric center. A challenge of the examination process is the rolling 18-month window. Candidates must pass all four sections within this period, starting from the date the first section is passed, or they lose credit for sections passed outside the window and must retake them.
The structure of the examination is currently undergoing a transition with the introduction of the CPA Evolution initiative. This updated model maintains the three core sections of AUD, FAR, and REG, while replacing the BEC section with three discipline sections from which candidates must choose one. This change is designed to reflect the profession’s increasing focus on technology and data analysis. It allows candidates to specialize in business reporting and analysis, information systems, or tax compliance. The goal remains to ensure that newly licensed CPAs possess the competencies needed for the modern practice of public accountancy.
The Necessary Experience Component
Passing the CPA examination and satisfying the 150-hour education mandate fulfill two of the three requirements for full licensure. The final mandatory step is completing a specific amount of qualifying professional experience. This component ensures that candidates can apply their theoretical knowledge and judgment to real-world accounting situations under professional guidance. Most state boards require candidates to complete between one and two years of relevant accounting experience before the license is granted.
The nature of this experience is strictly defined and generally includes work in areas such as attest services, financial statement preparation, tax planning and preparation, or forensic accounting. A defining feature of this requirement is the necessity of direct supervision by an actively licensed CPA. This supervising CPA must sign off on the candidate’s work, certifying that the experience gained is of sufficient quality and scope to warrant licensure. The supervisory role provides mentorship and ensures that the candidate adheres to professional ethical and technical standards.
The purpose of this practical component is to verify competency in skills not tested academically, such as professional skepticism, client communication, and business acumen. Candidates typically gain this experience while working for public accounting firms, though some states allow qualifying experience gained in government or industry settings. The experience must be documented and submitted to the state board for final approval before the CPA certificate is officially issued.
Understanding State Variations
While the CPA examination is uniform across the country, the process of obtaining the license is regulated entirely by the individual state boards of accountancy. This means that the specific implementation of the education, examination, and experience requirements can differ significantly depending on the jurisdiction where the candidate applies. For example, many states allow candidates to sit for the CPA exam after meeting only 120 credit hours, or the bachelor’s degree requirement, before they complete the full 150 hours needed for licensure. This allows for an earlier start to the examination process.
State boards also vary in their specific coursework mandates beyond the general 150-hour rule. Some jurisdictions require a specific number of semester hours in subjects like business ethics or communications, which are not uniformly required across all states. The definition of what constitutes qualifying professional experience also sees variation, with some states being more restrictive regarding industry experience compared to public accounting experience. Aspiring CPAs must consult the rules of the specific state where they plan to practice and obtain their initial license to ensure full compliance with all local regulations.
Maintaining CPA Licensure
Earning the CPA license is the culmination of years of study and experience, but maintaining it is an ongoing professional obligation. To ensure practitioners remain current with evolving standards, regulations, and technologies, all state boards mandate the completion of Continuing Professional Education (CPE). This requirement demonstrates a commitment to lifelong learning and competency in the field.
CPAs must complete a specified number of CPE hours within a given reporting period to renew their license, typically ranging from 120 hours every three years or 40 hours annually. These hours must be obtained through qualified educational programs, seminars, or self-study courses that enhance professional knowledge. A portion of the required CPE hours must be dedicated to professional ethics, which reinforces the importance of integrity and objectivity in the profession. Failure to meet these continuing education mandates results in the temporary lapse or permanent forfeiture of the ability to practice as a licensed Certified Public Accountant.