How to Earn Your CPA License: The Requirements

Becoming a Certified Public Accountant (CPA) represents a significant achievement in the accounting profession, opening doors to diverse career opportunities and demonstrating a high level of expertise. The CPA designation is widely recognized, signifying proficiency in accounting principles, ethical standards, and ongoing professional development. Pursuing this certification is a rigorous process, demanding dedication through extensive education, a challenging examination, and practical experience. This journey is an investment in one’s professional future, culminating in a credential that enhances credibility and career mobility within the financial landscape.

Understanding the CPA Licensure Framework

The pathway to CPA licensure is structured around a framework primarily managed at the state or jurisdictional level. The exact requirements can vary across the 55 U.S. jurisdictions, which include the 50 states, the District of Columbia, and several U.S. territories. These distinct requirements are set and enforced by each jurisdiction’s State Board of Accountancy.

A universal understanding of CPA licensure revolves around the “Three Es”: Education, Examination, and Experience. Each “E” represents a distinct hurdle that candidates must clear to qualify for licensure. The National Association of State Boards of Accountancy (NASBA) plays a coordinating role, working with State Boards of Accountancy and the American Institute of Certified Public Accountants (AICPA) to ensure consistency and facilitate the examination process. While NASBA helps establish and standardize exam and licensing guidelines, the State Boards retain the authority to issue licenses and oversee the accounting profession within their specific boundaries. They evaluate applicant eligibility, verify exam completion, assess supervised experience, and enforce ethical standards.

Meeting the Educational Prerequisites

Earning a CPA license requires a substantial commitment to higher education, typically extending beyond a standard bachelor’s degree. The most common educational prerequisite is 150 semester hours of college coursework. This requirement contrasts with the 120 hours generally needed for a bachelor’s degree, necessitating an additional 30 hours of study.

Candidates often fulfill these additional hours through various avenues. Many pursue a master’s degree in accounting or business, which naturally provides the necessary credits and often specialized knowledge. Alternatively, some individuals opt for a “fifth year” of undergraduate study, taking extra courses beyond their initial bachelor’s curriculum. Community college courses or post-baccalaureate programs can also contribute to meeting the 150-hour threshold, provided they are from accredited institutions and meet the specific content requirements.

Beyond the total semester hours, jurisdictions generally mandate a certain number of credits in accounting and business-related subjects. Common requirements include 24 to 30 semester hours in accounting courses and a similar range in general business courses. Accounting coursework typically encompasses areas such as financial accounting, auditing, taxation, and management accounting. Business credits might include subjects like economics, finance, business law, and information systems.

The precise breakdown of required accounting and business credits can vary significantly from one state board to another, making it important for candidates to consult the specific requirements of their chosen jurisdiction. Some states might also require a specific ethics course as part of their educational prerequisites.

Preparing for and Taking the CPA Examination

The Uniform CPA Examination is a rigorous assessment, serving as a standardized measure of the knowledge and skills necessary for entry-level accounting professionals. The application process to sit for the exam begins with confirming eligibility, which typically involves meeting specific educational requirements set by the candidate’s chosen state board. Candidates must gather and submit required documentation, such as official college transcripts from all attended institutions, to the state board or NASBA’s CPA Examination Services. For those with international education, transcripts often require validation by an approved third party.

An initial application fee, typically $100 to $200, is paid directly to the state board to process the application and determine eligibility. Once the application is approved and fees are paid, candidates receive a Notice to Schedule (NTS). This NTS is a crucial document, functioning as an authorization to test and containing a unique identification number required to schedule exam sections. It specifies the exam sections for which the candidate is approved and has an expiration date, usually valid for six months, meaning the exam section must be taken before the NTS expires.

The Uniform CPA Examination consists of four distinct sections, each four hours in length, totaling 16 hours of testing. All candidates must complete three “Core” sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG). Additionally, candidates must choose and pass one “Discipline” section from three options: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP). Each section is comprised of multiple-choice questions (MCQs) and task-based simulations (TBSs), which are practical questions requiring typed responses, research, or form completion.

After receiving the NTS, candidates schedule their chosen exam sections through Prometric, the exam’s testing administrator. Schedule appointments well in advance, sometimes 45 days or more, to secure preferred dates and locations. On the test day, candidates must present their NTS and two forms of valid identification to be admitted to the testing center. A minimum score of 75 on a scaled score from 0 to 99 is required to pass each section. Scores are not curved and do not represent a percentage correct. Candidates generally have an 18-month rolling window from the date they pass their first section to pass the remaining three sections. The cost for each exam section is approximately $200-$350, with the total examination fees for all four sections averaging around $1,000 to $1,500 if passed on the first attempt.

Gaining Required Professional Experience

Aspiring CPAs must accumulate qualifying professional experience. This practical experience requirement is a cornerstone of licensure, ensuring candidates possess real-world skills before earning the credential. Most State Boards of Accountancy require candidates to have between one and two years of relevant work experience, often translating to 2,000 to 4,000 hours. The specific duration and type of experience can vary by jurisdiction.

Qualifying experience generally involves the application of accounting skills and knowledge in areas such as auditing, taxation, financial reporting, management accounting, or advisory services. This experience can be gained in various settings, including public accounting firms, private industry, government agencies, or even academic institutions. A fundamental aspect of this requirement is that the experience must typically be supervised by an actively licensed CPA. This supervising CPA is responsible for overseeing the candidate’s work and attesting to the quality and relevance of the experience gained.

Verification of experience is usually a formal process involving specific forms provided by the state board. These forms detail the nature of the work performed, the duration, and the supervising CPA’s credentials and signature. The supervising CPA generally needs to hold an active license in the same jurisdiction where the candidate is seeking licensure. Some jurisdictions might accept experience gained under a CPA licensed in a different state, but this varies.

Internships, contract work, and sometimes even volunteer work that meets the defined criteria can count towards the experience requirement. It is important for candidates to understand their jurisdiction’s specific definitions of qualifying experience and supervision to ensure their practical work contributes effectively toward licensure.

Submitting Your CPA License Application

After successfully navigating the educational requirements, passing all sections of the Uniform CPA Examination, and fulfilling the professional experience criteria, the final step is to formally apply for the CPA license. This process is handled directly by the State Board of Accountancy in the jurisdiction where licensure is sought. The application involves submitting specific forms dedicated to the license itself, which are distinct from the forms used to apply for the CPA Exam.

Candidates typically obtain these application forms from their State Board’s website. The complete application package usually includes documentation verifying the completion of all “Three Es” (education, examination, and experience). Many jurisdictions also require candidates to pass an ethics examination. This ethics exam is separate from the Uniform CPA Examination and typically covers the AICPA Code of Professional Conduct and other ethical standards. It is often an open-book, self-study course with a required passing score, often 90% or higher. Some states administer their own ethics exams, while others accept the AICPA’s comprehensive ethics course.

In addition to the ethics exam, some jurisdictions may require background checks to ensure the candidate’s suitability for licensure. Application fees for the final license vary by state but can range from approximately $50 to $500. Once the complete application package is submitted, the State Board reviews all documentation to ensure compliance with its specific regulations. This review process can take several weeks or months. During this time, the board may request additional information or clarification. Upon successful review and approval, the State Board of Accountancy issues the Certified Public Accountant license, formally recognizing the individual’s qualifications to practice public accounting.