Do You Need a Masters in Accounting to Be a CPA?

The Certified Public Accountant (CPA) designation represents a high standard of expertise and ethics in the accounting profession. Obtaining this licensure signifies a professional’s deep understanding of accounting principles, auditing standards, tax laws, and business regulations. Many individuals aspiring to enter or advance within the accounting field often inquire whether a Master’s degree is a mandatory prerequisite for becoming a CPA. While a graduate degree can certainly contribute to meeting the educational requirements, it is important to understand the foundational rules that govern CPA licensure. This article clarifies the educational pathways to becoming a CPA, addressing the common misconception that a Master’s degree is always necessary.

The 150-Hour Requirement

An educational requirement for CPA licensure across the United States is the completion of 150 semester hours of college coursework. This standard was recommended by the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA) to ensure CPAs possess a broad understanding of business and accounting concepts. The 150-hour rule, adopted by all state boards of accountancy, prepares candidates for the modern accounting profession.

While a typical Bachelor’s degree comprises 120 semester hours, CPA licensure requires an additional 30 hours of education. These 150 hours include specific accounting and general business credits. For example, some states may require 24 to 36 hours in accounting courses and 24 to 30 hours in general business subjects. This expanded education equips future CPAs with comprehensive skills beyond a standard four-year accounting program.

Fulfilling the 150 Hours

Meeting the 150-hour educational requirement does not require a Master’s degree, though it is a common method. Many aspiring CPAs pursue a Bachelor’s degree and then complete an additional 30 hours through various means. For instance, a candidate might earn a Bachelor’s degree in accounting and then pursue a Master’s degree, such as a Master of Accountancy (MAcc) or a Master of Science in Taxation (MST), which fulfill the remaining credit hours.

Another common approach involves taking additional undergraduate courses after a Bachelor’s degree to reach the 150-hour threshold. These extra courses can include advanced accounting topics, business electives, or general education subjects, as long as they meet state board requirements. Some universities offer integrated Bachelor’s/Master’s programs designed to meet the 150-hour requirement within a five-year timeframe. Post-baccalaureate certificate programs are another option for those with a Bachelor’s degree to acquire necessary accounting or business credits without committing to another full degree. The primary objective is to accumulate the required total credit hours, regardless of the specific degree type used.

State Specific Rules

While the 150-hour educational requirement is a uniform standard across all states, specific coursework and other criteria can vary significantly. Each state board of accountancy sets its own detailed rules for accounting, business, and specialized courses like ethics. For example, one state might mandate a certain number of upper-level accounting courses, while another might have more flexible requirements for the additional 30 hours.

In addition to educational requirements, states have differing requirements for work experience and other examinations. Many states require a certain amount of supervised accounting experience, typically ranging from one to two years, verified by a licensed CPA. Some jurisdictions require candidates to pass a state-specific ethics exam, often distinct from the Uniform CPA Examination, for licensure. It is essential to research the specific requirements of the state where you intend to practice, as these details directly impact the path to licensure.