The Certified Public Accountant (CPA) designation signifies a high level of technical expertise and professional commitment in the accounting profession. Earning this license in Texas is a defined process overseen by the Texas State Board of Public Accountancy (TSBPA). The TSBPA establishes precise standards to ensure licensed professionals possess the knowledge and skills necessary to protect the public interest. Aspiring professionals must progress through a sequence of steps, beginning with academic preparation and culminating in the formal issuance of the certificate.
Meeting the Educational Prerequisites
The foundation of the Texas CPA license requires candidates to complete a total of 150 semester hours of college credit from an accredited institution. This extensive coursework ensures a broad understanding of business and accounting principles. The TSBPA mandates specific coursework within these hours in both accounting and related business subjects to qualify for licensure.
Candidates must complete at least 27 semester hours of upper-level accounting courses (3000-level or higher). This coursework must include two semester hours dedicated to accounting or tax research and analysis, focusing on applying independent judgment to complex financial data. A three-semester-hour board-approved ethics course is also required as part of the total 150 hours.
The educational requirements also call for a minimum of 24 semester hours in related business subjects, such as economics, finance, business law, and management information systems. While the TSBPA requires the full 150 semester hours for final licensure, candidates may sit for the Uniform CPA Examination after completing only 120 hours. This is permitted provided they meet the specific accounting and business course requirements, allowing candidates to begin the examination process early.
Applying for and Passing the CPA Examination
After satisfying the minimum educational requirements, the next major step is passing the Uniform CPA Examination. The process begins with submitting an Eligibility Application to the TSBPA, along with transcripts and applicable fees, to verify qualification. Once approved, the candidate receives a Notice to Schedule (NTS) from the National Association of State Boards of Accountancy (NASBA).
The NTS authorizes the candidate to schedule and take specific sections of the exam at a Prometric testing center within a 90-day window. The examination consists of four distinct sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulation (REG), and a Discipline section (BAR, ISC, or TCP). Candidates may take the sections in any order, but a minimum score of 75 is required to pass each section.
A defining rule of the examination process is the 18-month rolling window. Candidates must pass all four sections within 18 months from the date the first successful section was taken. If the remaining sections are not passed within this timeframe, credit for the earliest passed section expires, requiring a retake. This time constraint necessitates a focused approach to studying and scheduling the examinations.
Fulfilling the Work Experience Requirement
Passing the Uniform CPA Examination is one of several requirements necessary before the CPA license can be issued. The TSBPA requires candidates to complete a period of qualifying, practical work experience to ensure they can apply academic knowledge professionally. This experience must total at least one year of full-time employment, or a minimum of 2,000 hours of part-time employment over a period not exceeding two consecutive years.
The experience must be in non-routine accounting work, involving the use of independent judgment and the application of professional accounting knowledge. Qualifying services include tax, consulting, attest services, or management advisory work as defined by the board. This work must be complex enough to require a CPA’s expertise, extending beyond basic, repetitive bookkeeping tasks.
The work must be performed under the direct supervision of an actively licensed CPA. The supervising CPA is responsible for evaluating and reviewing the candidate’s work and must hold a current license from the TSBPA or any other state board of accountancy. This supervision ensures the experience is properly guided and that the candidate is prepared for professional responsibilities. The supervising CPA formally verifies the experience upon the candidate’s application for licensure.
Completing the Final Licensure Steps
With the education, examination, and experience requirements satisfied, the candidate must complete the final steps to transition to a licensed CPA. This involves submitting the Application for Issuance of the CPA Certificate to the TSBPA, including all supporting documentation and fees. A mandatory part of this application is completing a criminal background check. This requires the candidate to submit electronic fingerprints to the Department of Public Safety for processing by the state and the FBI.
The final ethical hurdle is the Texas Rules of Professional Conduct Examination. This open-book test covers the specific rules governing the practice of public accountancy in the state. The exam is sent after the Application for Issuance is received and requires a passing score of 85% or better. Additionally, the candidate must complete an Oath of Office, a notarized document affirming the commitment to uphold professional standards. Successful completion of these final steps leads to the issuance of the official CPA certificate.
Maintaining Your Texas CPA License
Once the license is granted, the professional must maintain competence through Continuing Professional Education (CPE). The TSBPA mandates that licensed CPAs must complete a total of 120 hours of CPE during each three-year reporting period. A minimum of 20 CPE hours must be completed each year to ensure continuous learning.
A specific component of the CPE requirement is completing a four-hour course on Texas-specific ethics every two years. This course focuses on the TSBPA Rules of Professional Conduct to keep CPAs current on ethical standards. Licenses are subject to annual renewal, occurring on the last day of the CPA’s birth month. The licensee must report compliance with the CPE requirements at renewal to remain in good standing.