How to Report CPE Credits for Your CPA License

Certified Public Accountants (CPAs) must engage in Continuing Professional Education (CPE) to maintain their licenses and ensure their skills remain current. This ongoing education is a fundamental requirement, designed to keep CPAs abreast of evolving accounting standards, tax laws, and business practices. Fulfilling CPE obligations demonstrates a commitment to professional competence and helps uphold public trust.

Understanding CPE Requirements

CPE requirements for CPAs vary by individual state boards of accountancy. Most state boards require a minimum of 120 hours of CPE over a three-year reporting period, often with an annual minimum of 20 hours. Some states may have biennial reporting periods requiring around 80 hours over two years.

Many jurisdictions specify requirements for certain subject areas. Ethics is a mandatory component, often requiring between two and four hours per reporting period. Other common subject areas include accounting and auditing (A&A), taxation, and general business. Some states also impose limits on hours from certain learning formats, such as self-study or instructing courses.

Reporting periods can align with calendar years, fiscal years, or the CPA’s license renewal cycle. While some states permit a limited carryover of excess credits, this rule varies significantly. CPE credits must be obtained from programs offered by National Association of State Boards of Accountancy (NASBA)-registered sponsors or providers explicitly approved by the relevant state board.

Documenting Your CPE Activities

Accurate and complete documentation of CPE activities is essential for reporting. CPAs must retain specific records for each completed activity, which serve as proof of earned credits. This typically includes:
The CPA’s name
The date of the course
The number of credits earned
The course title and topic area
The name of the program sponsor

Maintaining these records throughout the reporting period is important. Effective record-keeping practices can involve digital folders, spreadsheets, or specialized CPE tracking software. The accuracy and completeness of these records are crucial for the CPE report and potential audits. Obtain documentation promptly after completing a CPE activity to ensure all necessary information is captured.

Submitting Your CPE Report

Submission of CPE reports occurs annually or with license renewal, depending on state regulations. Many state boards facilitate this process through online portals. Some states may also utilize NASBA’s CPE Audit Service, which allows CPAs to track and report their credits.

The submission process involves logging into the designated online platform and selecting the appropriate reporting period. CPAs then input details for each CPE activity, including:
The sponsor name
Course title
Date of completion
Hours earned
The specific subject area

After entering all required information, the report is submitted electronically. Retain proof of submission, such as a confirmation email or a printout of the submission page, for personal records.

Post-Reporting Compliance

After submitting a CPE report, CPAs have ongoing compliance responsibilities, primarily related to record retention. State boards require licensees to retain their CPE documentation for three to five years beyond the reporting period. This retention period is important because state boards of accountancy periodically conduct CPE audits to verify compliance.

A CPE audit involves the state board requesting specific documentation from selected CPAs to substantiate reported credits. If selected for an audit, CPAs should expect to provide the retained records and adhere to specified deadlines. Prompt and accurate submission of all requested documentation is essential. Failure to meet CPE requirements or to provide adequate documentation during an audit can lead to disciplinary actions, including fines, license suspension, or revocation of the CPA license.