Do You Have to Have an Accounting Degree to Be a CPA?

Becoming a Certified Public Accountant (CPA) is a significant professional achievement. While many aspiring CPAs pursue a traditional accounting degree, it is not always a strict prerequisite for licensure. The journey involves meeting specific educational, examination, and experience requirements. These ensure licensed professionals possess a broad and deep understanding of accounting principles and practices. The path is rigorous, emphasizing a comprehensive skill set.

Educational Pathways to CPA Licensure

A fundamental requirement for CPA licensure across all states is the completion of 150 semester hours of college education, which significantly exceeds the typical 120 hours for a bachelor’s degree. This 150-hour rule, adopted by nearly all U.S. jurisdictions, aims to provide candidates with a more robust and advanced knowledge base in accounting and business. The additional 30 credit hours ensure that CPAs are well-prepared for the complexities of the modern financial landscape, encompassing areas like business strategy, tax laws, and auditing standards.

Within these 150 hours, specific credit allocations for accounting and business courses are generally mandated. Typically, state boards require around 24 to 30 semester hours in accounting-specific subjects. These credits cover core areas such as financial accounting, auditing, taxation, and managerial accounting, providing the technical foundation necessary for the profession. Beyond accounting, candidates also need a certain number of general business credits, often ranging from 24 to 30 semester hours. This broader business curriculum includes subjects like economics, finance, business law, statistics, and information systems, equipping future CPAs with a well-rounded understanding of the business environment.

Individuals holding a bachelor’s degree in a field other than accounting can still pursue CPA licensure by fulfilling the 150-hour requirement. A common approach is pursuing a Master of Accountancy (MAcc) or an MBA with a concentration in accounting to gain additional credits and specialized coursework. Alternatively, candidates can complete post-baccalaureate programs or take additional undergraduate courses to accumulate the required accounting and business credits. The emphasis is on the content of the coursework, ensuring specific accounting and business credit requirements are met, rather than solely on the title of the degree. For example, a liberal arts graduate might take targeted accounting and business courses at a community college or through online programs to bridge the credit gap.

While the 150-hour rule is universal for licensure, some states allow candidates to sit for the Uniform CPA Examination with fewer credits (120) before requiring the full 150 for license issuance. Specific credit requirements, including accounting and business courses, vary by state board of accountancy. Aspiring CPAs should consult the specific rules of the state where they intend to be licensed to ensure all educational prerequisites are met.

The Uniform CPA Examination

After fulfilling the educational requirements, candidates must pass the Uniform CPA Examination, a rigorous assessment of accounting knowledge and skills. The exam transitioned to a Core + Discipline model in 2024, consisting of three mandatory Core sections and one chosen Discipline section. Each section is a four-hour test. The three Core sections are Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG).

The Auditing and Attestation (AUD) section focuses on auditing standards and procedures, professional responsibilities, and attestation engagements, covering topics like risk assessment and reporting. The Financial Accounting and Reporting (FAR) section tests knowledge of financial accounting standards for various entities, including governmental and not-for-profit organizations. The Regulation (REG) section covers federal taxation for individuals and entities, business law principles, and professional ethics related to tax practice.

The previous Business Environment and Concepts (BEC) section has been replaced by three new Discipline sections: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP). Candidates choose one of these disciplines based on their career interests. BAR includes topics like data analytics, financial risk management, and advanced accounting. ISC focuses on business processes, information systems, and IT audits, including System and Organization Controls (SOC) engagements. TCP covers advanced tax compliance and planning for individuals and entities, as well as personal financial planning.

To pass the Uniform CPA Examination, candidates must achieve a minimum score of 75 on a 0-99 scale for each section. A crucial aspect of the exam is the 18-month rolling window, which means that all four sections must be passed within 18 months of passing the first section. If a candidate fails to pass all sections within this timeframe, credit for the earliest passed section may expire, requiring it to be retaken. Candidates typically apply to their state board of accountancy or the National Association of State Boards of Accountancy (NASBA) to take the exam, generally after meeting or nearly meeting the educational requirements. The examination is administered at Prometric testing centers nationwide.

Experience and Licensing Requirements

Beyond education and examination, gaining relevant work experience is a fundamental step toward CPA licensure. Most states require candidates to complete supervised accounting experience, typically ranging from one to two years. This experience generally needs to be overseen and verified by an active, licensed CPA. The nature of “relevant experience” can vary but commonly includes areas such as auditing, tax preparation, financial reporting, and management accounting, all of which involve applying accounting principles and standards. Some jurisdictions may also accept experience gained in governmental accounting, industry, or even teaching accounting subjects at an accredited institution.

Many states require candidates to pass a separate ethics examination, often the AICPA Professional Ethics Exam. This open-book, multiple-choice exam assesses knowledge of the AICPA Code of Professional Conduct and requires a passing score, often 90% or higher. This ethics exam can be taken at various points in the licensure process, but many candidates complete it after passing all sections of the Uniform CPA Examination.

The final step in the licensure process involves submitting an application to the state board of accountancy. This application includes official transcripts verifying educational attainment, official scores from the Uniform CPA Examination, and documentation of work experience verified by a supervising CPA. Application fees for licensure vary by state, ranging from approximately $100 to $500.

Once licensed, CPAs are subject to ongoing Continuing Professional Education (CPE) requirements to maintain their active license. These requirements mandate that licensed CPAs complete a specific number of CPE hours periodically, such as 40 hours annually or 120 hours over three years. CPE ensures CPAs remain current with evolving accounting standards, tax laws, auditing pronouncements, and ethical guidelines. CPE can be obtained through approved activities, including seminars, courses, and self-study programs. Specific CPE requirements, including hours and subject matter, differ among state boards. Check individual state regulations for compliance.