Do I Need an Accounting Degree to Be a CPA?

Becoming a Certified Public Accountant (CPA) is a significant career aspiration for many individuals interested in finance and accounting. The CPA designation represents a high level of expertise and ethical conduct within the accounting profession. While many aspiring CPAs pursue an accounting degree, the path to becoming a licensed CPA is not exclusively limited to those with such a degree. The journey to licensure involves meeting specific educational, examination, and experience requirements, which can often be fulfilled through various academic backgrounds.

Educational Requirements for CPA Licensure

To become a licensed CPA, individuals must meet the “150-hour rule,” which mandates 150 semester hours of college education. This typically amounts to 30 additional semester hours beyond a standard 120-semester-hour bachelor’s degree. While a bachelor’s degree in accounting is a common route, it is not always the sole prerequisite.

The 150 semester hours must include a specified number of accounting and general business credits. Many jurisdictions require between 24 and 30 semester hours in accounting coursework. These accounting credits often need to cover specific subjects such as auditing, taxation, financial accounting, and managerial accounting. For instance, some states specify a minimum number of upper-level accounting courses.

In addition to accounting courses, candidates typically need 24 to 30 semester hours in general business subjects. These business credits may encompass economics, finance, business law, statistics, and information systems. Individuals who hold a non-accounting undergraduate degree can still meet these educational requirements. Options include pursuing a Master of Accountancy (MAcc), a Master of Business Administration (MBA) with an accounting concentration, or a post-baccalaureate certificate in accounting. Additional undergraduate coursework in relevant subjects can also fulfill the credit hour gap.

Experience Requirements for CPA Licensure

Gaining practical experience is a mandatory component of CPA licensure. Most state boards of accountancy require candidates to accumulate 1 to 2 years of relevant work experience. This generally translates to approximately 2,000 to 4,000 hours of professional accounting work.

The experience must typically be obtained under the supervision of an actively licensed CPA. Qualifying experience often includes work in public accounting, such as attest services, tax preparation, and financial statement compilation or review. Experience in internal audit, government accounting, corporate finance, or even academia can also be accepted, depending on the jurisdiction’s specific rules.

The work performed should involve the application of accounting principles and demonstrate the use of independent judgment. This might include tasks like preparing financial statements, conducting audits, performing tax compliance and planning, or engaging in advisory services. Proper documentation of this experience is essential for the licensure application.

The Uniform CPA Examination

Passing the Uniform CPA Examination is a universal requirement for CPA licensure across the United States. As of January 2024, the exam consists of three core sections and one discipline section chosen by the candidate.

The three mandatory core sections are Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG). Candidates then select one of three discipline sections: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP). Each section is a four-hour assessment, making the total exam length 16 hours.

Candidates must achieve a minimum score of 75 on each section to pass. All four sections must be passed within an 18-month rolling window. The exam format includes both multiple-choice questions and task-based simulations. The application process for the exam typically involves submitting educational transcripts and receiving a Notice to Schedule (NTS) from the relevant board of accountancy.

Navigating State-Specific CPA Requirements

While the general framework of education, experience, and examination is consistent, the precise requirements for CPA licensure are set by individual State Boards of Accountancy. Specific credit hour breakdowns, definitions of qualifying experience, and other prerequisites can vary from one jurisdiction to another. For example, some states may have specific ethics exam requirements or differing rules for how foreign credentials are evaluated.

Variations might include the exact number of accounting and business credits needed, or whether certain courses, such as ethics or accounting information systems, are mandated. Some states allow candidates to sit for the CPA Exam with 120 credit hours but require the full 150 hours for actual licensure, while others insist on 150 hours before sitting for the exam. The type and duration of acceptable work experience can differ, with some jurisdictions accepting teaching experience or self-employment under specific conditions.

Given these jurisdictional differences, it is crucial for aspiring CPAs to consult the specific State Board of Accountancy website. The National Association of State Boards of Accountancy (NASBA) provides resources on state-specific requirements. Relying on these official sources ensures all specific criteria are met for the chosen jurisdiction.