The Certified Public Accountant (CPA) designation represents a high level of expertise and professional commitment in the accounting field. Achieving this license provides career mobility and the authority to perform specialized services, such as auditing financial statements. Since the privilege to practice public accountancy is regulated at the state level, the journey involves meeting the rigorous standards set by the Texas State Board of Public Accountancy (TSBPA). The process is intentionally demanding, ensuring that only qualified individuals are entrusted with protecting the financial interests of the public.
Understanding the Texas CPA Requirements
The path to becoming a licensed CPA in Texas is structured around a set of sequential and overlapping qualifications. These requirements are categorized into four main components: education, examination, experience, and ethics. The Texas State Board of Public Accountancy (TSBPA) mandates that all candidates satisfy these elements before a license is issued.
Meeting the Educational Requirements
The Texas State Board of Public Accountancy requires CPA candidates to complete a minimum of 150 semester hours of college credit. This significant academic milestone typically requires a bachelor’s degree plus an additional 30 hours, often fulfilled through a master’s program in accounting. This extensive requirement establishes the necessary educational foundation for licensure.
The 150 total hours must include specific coursework concentrations to qualify. Candidates need at least 30 semester hours in upper-level accounting courses, meaning above the introductory principles level. Within this accounting concentration, a minimum of two semester hours must be dedicated to accounting or tax research and analysis.
The curriculum must also feature 24 semester hours of upper-level business courses. This component provides a broad understanding of the economic environment in which accounting operates. Two semester hours of this business coursework must focus on communication, covering either accounting or general business communications.
Applying for and Passing the CPA Examination
The first step in the examination process is establishing eligibility with the Texas State Board of Public Accountancy. Texas requires candidates to have completed the full 150 semester hours of education before they can sit for the Uniform CPA Examination. Once educational requirements are verified, candidates submit an Application of Intent to the TSBPA.
Upon approval, the Board issues a Notice to Schedule (NTS), allowing the candidate to book and take the four sections of the national exam. The Uniform CPA Examination consists of four parts, and a candidate must achieve a minimum score of 75 on each:
- Auditing and Attestation (AUD)
- Financial Accounting and Reporting (FAR)
- Regulation (REG)
- Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP) sections
All four sections must be passed within 18 months of the date the first successful section was taken. If a candidate fails to pass all four parts within this period, credit for the earliest passed section expires, and that section must be retaken. This strict timeline ensures the candidate’s knowledge remains current with evolving standards.
Fulfilling the Work Experience Requirements
Candidates must complete the practical work experience requirement after navigating the academic and examination phases. Texas mandates one year of full-time work experience, totaling at least 2,000 hours of non-routine accounting services. This requirement ensures that applicants possess the practical skills necessary to perform the duties of a CPA.
The experience must involve services or advice using accounting, attest, tax, or consulting skills, requiring the application of professional judgment. Non-routine work involves using professional accounting knowledge to select, organize, interpret, and present financial data across diverse accounting situations.
This experience must be supervised by a currently licensed CPA who holds an active license from Texas or any other state board of accountancy. The supervising CPA is responsible for evaluating and verifying the candidate’s work. The 2,000 hours can be accumulated through full-time employment over 12 months or through part-time work spanning not more than three consecutive years. Formal documentation and verification of this experience must be submitted to the TSBPA for final approval.
Completing the Texas Ethics Course and Exam
Texas requires a mandatory professional ethics component separate from the national Uniform CPA Examination. This state-specific requirement ensures candidates understand the ethical and legal obligations of a Texas license holder. Candidates must successfully complete a Board-approved Ethics Course.
This course is typically a four-hour program focusing on ethical reasoning, professional values, and attitudes, including integrity, objectivity, and independence. Following the course, candidates must pass the Texas Rules of Professional Conduct Examination. This open-book exam requires a passing score of 85% or higher to demonstrate a working knowledge of the state’s professional rules and regulations.
Applying for the CPA License
The final stage involves compiling and submitting a comprehensive application packet to the Texas State Board of Public Accountancy (TSBPA). This administrative step confirms the candidate has satisfied all prerequisites for licensure. The application requires:
- Proof of passing the Uniform CPA Examination
- Verification of the 150 semester hours of education
- Completed affidavit documenting the 2,000 hours of supervised work experience
- Successful completion certificate for the Texas Ethics Course
- Passing score for the Texas Rules of Professional Conduct Examination
A mandatory background check is conducted to confirm good moral character, and a final application fee is paid. Once the TSBPA reviews and approves all documentation, the official Texas CPA certificate is issued.
Maintaining Licensure Through Continuing Professional Education
Once the CPA license is issued, the professional must meet ongoing Continuing Professional Education (CPE) requirements to maintain good standing. This ensures CPAs remain current with evolving standards within the accounting profession. Texas CPAs must complete a total of 120 CPE hours over a three-year rolling period.
This includes a minimum annual commitment of at least 20 hours of CPE each year. The TSBPA mandates a recurring ethics component: CPAs must complete a minimum of four hours of ethics CPE every two years from a Board-approved provider. License renewal requires CPAs to report their completed CPE hours to the TSBPA annually.