A Certified Public Accountant (CPA) is a licensed financial professional providing services to businesses and individuals. CPAs perform duties including audits, complex tax returns, and financial strategy advising. The designation signifies expertise and is required for public accounting functions, such as issuing opinions on financial statements. Attaining the CPA license is a rigorous process requiring specific educational requirements beyond a typical four-year degree.
The Foundational Degree Requirement for CPA Licensure
The initial academic hurdle for CPA candidacy is completing a bachelor’s degree from an accredited college or university. This minimum requirement is mandatory across all U.S. jurisdictions and serves as the academic foundation for the profession. Candidates typically pursue a B.S. or B.A. with a major or concentration in accounting.
While a bachelor’s degree (usually 120 semester hours) is an absolute prerequisite, it is generally not enough to meet the full requirements for CPA licensure. The degree must establish a baseline understanding of Generally Accepted Accounting Principles (GAAP), financial statement analysis, and basic auditing and tax practices. State boards of accountancy verify that the degree is from an accredited institution and contains the specific coursework needed for the licensing process.
The Critical 150-Credit Hour Standard
All 55 U.S. jurisdictions require 150 semester hours of education for full CPA licensure. This standard, formalized by the American Institute of Certified Public Accountants (AICPA), ensures CPAs possess a broad understanding of business principles. The rule acknowledges that the increasing complexity of the modern business environment demands more than a traditional 120-hour degree provides.
The 150-hour rule means an aspiring CPA must complete 30 additional semester hours beyond the typical four-year bachelor’s degree program. This extra year of academic study is intended to cultivate professional judgment and technical competence. The 150-hour educational pathway remains the dominant and most widely accepted route for licensure across the country, safeguarding the mobility of the license.
Required Accounting and Business Coursework
Beyond total credit hours, state boards mandate that the 150 hours include a specific distribution of accounting and general business subjects. These requirements ensure the candidate has a comprehensive knowledge base relevant to the CPA’s responsibilities. Necessary accounting coursework universally includes upper-level subjects such as auditing and attestation, advanced financial accounting, and taxation.
Jurisdictions typically require 24 to 30 semester hours in upper-level accounting courses (beyond the introductory level). Candidates must also complete a designated number of credits in related business subjects, usually ranging from 24 to 30 hours. These complementary courses cover areas like business law, economics, corporate finance, management, and information systems.
Common Educational Pathways to 150 Hours
Students seeking to bridge the 30-hour gap between a 120-hour bachelor’s degree and the 150-hour requirement choose from a few established educational pathways.
Master of Accountancy (MAcc)
The most common route is to enroll in a Master of Accountancy (MAcc) program, which is specifically designed to meet the educational prerequisites for CPA licensure. A MAcc provides the necessary advanced accounting credits while simultaneously satisfying the 150-hour threshold. This is often achieved in a single year of full-time study.
Master of Business Administration (MBA)
Another popular option is pursuing a Master of Business Administration (MBA) with a concentration in accounting. This path offers a broader understanding of business management in addition to specialized accounting knowledge. Candidates must ensure the curriculum contains the specific upper-level accounting courses required by their state board.
Post-Baccalaureate Courses
Alternatively, some students choose to remain at the undergraduate level, taking extra courses or a post-baccalaureate certificate in accounting or business to accumulate the final 30 hours. This approach can be more cost-effective. However, it may lack the depth of specialization provided by a dedicated master’s program.
Linking Education to CPA Exam Eligibility
A distinction exists between the educational requirements needed to sit for the CPA exam and those required for full licensure. Many state boards recognize that requiring 150 hours before the exam creates a significant delay in entering the profession. Consequently, numerous jurisdictions are “sit early” states, allowing candidates to take the Uniform CPA Examination after completing only 120 semester hours and their bachelor’s degree.
This regulatory flexibility permits candidates to begin the rigorous four-part exam while their academic knowledge is fresh. However, the candidate must still complete the remaining 30 credit hours before they can apply for and receive their official CPA license. The commitment to finishing the full 150 hours remains a mandatory condition for final certification.
Other Requirements for Becoming a Licensed CPA
The educational requirements are a major component of the licensing process but must be completed in conjunction with other professional milestones. All candidates must successfully pass the Uniform CPA Examination, a comprehensive, four-section test administered by the AICPA. This examination assesses the technical knowledge and professional skills required of a newly licensed accountant.
Following the examination, candidates must satisfy a professional work experience requirement, typically ranging from one to two years. This experience must be supervised and verified by an actively licensed CPA and involve the application of accounting, auditing, or tax skills. Additionally, most jurisdictions require the completion of a state-specific ethics exam or course to ensure the candidate understands professional conduct and regulatory standards.