How Many CPE Credits Do I Need for CPA?

Continuing Professional Education (CPE) for Certified Public Accountants (CPAs) helps licensed professionals maintain and enhance their skills and knowledge. It ensures CPAs remain current with evolving industry standards, regulatory changes, and best practices. The purpose of CPE is to uphold the integrity and competence of the accounting profession, protecting the public interest. Meeting these educational mandates is a requirement for all CPAs to maintain an active license.

Understanding CPE Requirements

CPE requirements for CPAs are determined by individual State Boards of Accountancy and are not uniform across the United States, with precise hours, reporting periods, and subject matter allocations varying significantly by state. CPAs need to complete between 40 and 120 hours of CPE per reporting period. Common reporting periods include annual, biennial (every two years), or triennial (every three years) cycles. Some states might require 40 hours annually, while others may mandate 80 hours over two years or 120 hours over three years. Most jurisdictions also require a minimum number of hours to be completed each year, such as at least 20 hours annually.

CPAs should consult the official website of their state’s Board of Accountancy for exact requirements. These websites provide detailed regulations, including specific hour mandates, reporting deadlines, and acceptable fields of study. Requirements can vary for CPAs in active practice versus those with inactive licenses, or for initial license renewal periods.

Credit Categories and Subject Areas

Beyond the total number of hours, CPA CPE requirements stipulate specific categories and subject areas where credits must be earned. A universal requirement is for ethics training, ranging from 2 to 8 hours per reporting period. These ethics courses cover state-specific rules of professional conduct, emphasizing ethical responsibilities unique to the jurisdiction.

For CPAs involved in attest or audit engagements, a substantial portion of their CPE hours must be in Accounting & Auditing (A&A) topics. This can be a minimum of 24 hours over a two-year period or 8 hours annually, particularly for those performing audits or reviews, or preparing financial statements. These A&A subjects encompass financial accounting, auditing theory and practice, and adherence to professional pronouncements from standard-setting bodies like the Financial Accounting Standards Board (FASB) or the Governmental Accounting Standards Board (GASB).

Additional technical business areas required or accepted for CPE include taxation, financial planning, information technology, and specialized industry knowledge. Taxation courses might cover tax compliance and planning, including individual, corporate, or specialized tax matters. Information technology topics could involve cybersecurity, data analytics, or accounting software applications. Some states allow a limited portion of credits in broader, non-technical business subjects, such as communications, marketing, and general management skills. These non-technical credits are often capped, ensuring the majority of a CPA’s education remains focused on core accounting competencies.

Approved CPE Activities

CPAs can fulfill their CPE requirements through various approved activities. Formal learning programs are the most common avenues for earning credits. These include live seminars, conferences, and webinars, which offer real-time interaction with instructors and other participants. Self-study courses, available both online and through correspondence, provide flexibility for CPAs to learn at their own pace, often requiring a passing score on a final examination to earn credits. University or college courses can also qualify for CPE credits, with semester hours converting to 15 CPE hours and quarter hours to 10 CPE hours.

To ensure CPE activities are recognized, choose programs from sponsors registered with the National Association of State Boards of Accountancy (NASBA) on its National Registry of CPE Sponsors. This registration signifies that the provider’s programs meet nationally recognized standards for continuing education. Credit hours are calculated based on a 50-minute hour, meaning 50 minutes of instruction or study equates to one CPE credit.

Less conventional but accepted methods for earning CPE credits include teaching or presenting qualified CPE programs. CPAs can earn credit for the actual presentation time, and sometimes for preparation time, though limits apply. Authoring and publishing professional articles or books in relevant subject areas may also be eligible for credits, provided proper documentation is maintained. Some states may allow limited credits for participating in technical review panels or serving on certain professional boards or committees.

Maintaining Records and Reporting

Maintaining records of completed CPE activities is a responsibility for every CPA. These records serve as proof of compliance in the event of an audit by the State Board of Accountancy. For each CPE activity, CPAs should retain documentation that includes:
The sponsor’s name and contact information
The program’s title and a description of its content
The date(s) of attendance or completion
The location (if applicable)
The number of CPE hours earned
The specific field of study

A certificate of completion or an official transcript is accepted as proof. Retain these records for at least five years from the end of the year in which the learning activities were completed.

The process for reporting CPE credits to the State Board of Accountancy varies by jurisdiction. Many states utilize online portals where CPAs can input details about their completed courses and upload supporting documentation. Reporting deadlines can be annual, biennial, or coincide with license renewal periods. Some states require CPAs to submit detailed CPE information with their license renewal, while others operate on an audit-based system, requiring documentation only if selected for review. Ensuring timely submission is important.

Failure to meet CPE requirements can lead to consequences, impacting a CPA’s license status. State Boards of Accountancy have various disciplinary actions for non-compliance, including fines, mandatory make-up hours, or suspension or revocation of a CPA license. A CPA might be required to complete additional penalty hours beyond the original deficiency. Penalties can range from monetary assessments to license probation or suspension. Adherence to CPE obligations is important to maintain an active and unrestricted CPA license.