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How to Become a CPA (Step-To-Step Guide 2024)

How to Become a CPA (Step-To-Step Guide 2024)

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When the time comes to leave school and decide on a future career path, it can sometimes seem that there are too many options to choose from or that there are many different ways to do the same thing.

Becoming a certified public accountant (CPA) is a popular career with budding accountants, but the minefield of education, licensing and ongoing learning can make it seem impossible to achieve.

If you are considering to become a CPA, this handy guide will help to break down the seemingly endless requirements for how to become a certified accountant (CPA) into nine easy-to-understand stages, so that your dream job in the accountancy field may be closer than you think.

You will learn CPA requirements, how to become a CPA and how long it takes to become a CPA.

What Is a CPA?

A CPA is the abbreviated term for a certified public accountant. It is different from a public accountant in the respect that people who hold CPA designation are registered and licensed with the American Institute of Certified Public Accountants (AICPA).

Chartered public accountants work in all areas of business, including both public and corporate accounting, as well as having the option to progress in their career to the position of chief financial officer.

CPAs have specialized accounting knowledge in areas such as:

Why Do People Want to Become CPAs?

So, how many CPAs are there in the USA?

According to nasba.org, in 2020 there were 658,267 actively licensed CPAs.

The decision to become a CPA is usually made because of increased job opportunities.

There are many more positions available for certified public accountants than for non-certified accountants, which also means more opportunities for career progression.

Another reason that individuals often choose to become CPAs is because of the salary differences.

On average, a certified public accountant will earn 10–15% more than their non-certified counterparts.

But how can you get a CPA license?

To get the CPA license you need to pass the Uniform CPA examination. The overall passing rate is 50%.

Can You Become a CPA Online?

The CPA exam is not available to take online. Tests are administered at designated Prometric testing centers. So, you cannot get your CPA online.

There are also work-experience requirements forming part of the CPA certification process which, understandably, cannot be completed online.

However, it is possible to complete other aspects of the process online before applying to sit the CPA exam.

For example, there are many universities and colleges which now offer online degree courses which fulfill the education requirements of CPA certification.

You can also find study courses and sample assessments online in readiness for sitting the real thing.

How to Become a CPA Without a Degree in Accounting

The CPA education requirements in most states require someone who is applying for licensing as a CPA to hold the equivalent of a bachelor’s degree.

So you might be wondering if you can become a CPA without a degree in accounting.

You do not necessarily have to have an accounting degree, but there will be a minimum number of credit hours required where individuals will need to have studied an accounting course.

If you are not studying accounting, but still wish to certify as a CPA, there are ways around it.

Some will choose to do additional courses alongside their degree course to fulfill the accounting credit hours requirement needed to get the CPA qualification.

How to Become a CPA in 9 Steps

1. Fulfill Citizenship and Age Requirements

To be eligible to study for CPA certification, individuals must be over the age of 18. It is also a requirement for applicants to be US citizens who are eligible for a social security number.

Those who do not fulfill the citizenship requirements will still be able to study to become public accountants, but they will not be able to be certified or licensed.

2. Fulfill Educational Requirements

Almost all states will require a minimum of 150 college-study credit hours.

Some of these hours will need to be from completing an accounting course, but the exact number will vary from state to state.

If you are a finance or economics major, for example, you will probably have already completed a certain number of accounting hours, but you may need to take additional accounting courses to fulfill the requirements of your state.

How to Become a CPA: 9 Steps to Success
How to Become a CPA: 9 Steps to Success

3. Start Studying

Your CPA-specific study can be done at the same time as testing, but it is a good idea to have started studying before applying for the tests.

This will take some of the pressure off when it comes to revising and help to give you a firm foundation of knowledge to build on.

People who study in advance have a higher chance of passing the CPA examination in fewer attempts.

4. Take a Review Course

Once you feel that you have a good grasp of the exam material, a review course can help to pinpoint any weak areas or sections which perhaps require further study.

Picking a good review course can make the difference between passing on the first attempt or not.

There are a variety of course options to choose from, so you are sure to find one which matches your personal learning style and doesn’t break the bank.

5. Apply for the CPA Exam

Once you feel that you are ready to take the CPA exam, you will need to apply.

There are four parts to the test and it is recommended that you space them to allow yourself sufficient study time before each one.

Once you have taken and passed your first exam, you will have 18 months to take and pass the other three.

To pass each section, candidates will need to score at least 75 out of 99.

Note: If you do not pass all four sections within the 18 months following the first exam, you will be required to start again from the first section.

6. Pass the AICPA Ethics Exam

Although this exam isn’t required in all states, it is a common part of the process to becoming a licensed CPA.

The AICPA ethics exam covers topics such as ethical duties and the ethical obligations of a certified public accountant.

Note: States which don’t require individuals to take the AICPA ethics exam may ask for alternative ethics papers to be completed.

7. Fulfill Work Experience Requirements

Work experience is an essential part of the process of becoming a fully licensed certified public accountant, although the exact amount of work experience required differs from state to state.

Generally, the minimum length of work experience required would be six months, with some states asking for up to two years.

The work experience completed during this time will be carried out under the supervision of a fully qualified CPA and may be required to fulfill certain criteria.

Some states will ask that candidates have experience in specific areas of knowledge such as auditing or taxation.

8. Apply for Licensing

Once you have passed all of your exams and fulfilled the work experience requirements for your state, there is only one thing left to do: Apply for licensing.

There will be a fee for this which will vary from state to state. The application for licensing will be done through your state's board of accountancy.

Note: Some states may also require that a criminal background check is completed when applications for licensing are submitted.

9. Congratulations, You Are Now a CPA

Once your licensing certificate has arrived, you can work as a CPA in whichever state you are licensed.

This isn’t the end of learning, however, as there will be annual continuing education and licensing requirements which will help to ensure that you are always up-to-date with any changes in legislation and ethical practices.

The exact details of these continuing education requirements will vary from state to state.

Note: To work as a CPA in another state, you may be required to fulfill slightly different criteria and apply for licensing there.

Will the CPA Requirements Vary in My State?

Although the process is essentially the same throughout the United States, some states have their variations of CPA Requirements.

For example, the AICPA ethics exam is not required for all states and some will have alternative ethics courses which they require to be completed.

Examples of state differences:

How to Become a CPA in Ohio

If you are looking to become a CPA in Ohio, you must complete a full background check before your application can be approved.

How to Become a CPA in California

If you would like to become a CPA in California, you are required to have 120 semester units with 24 semester hours in accounting and a further 24 semester hours in business-related courses.

How to become a CPA in Virginia

If you want to become a CPA in Virginia, there is no minimum age requirement for taking the exam. There is also no requirement to be an employee or resident in Virginia.

Frequently Asked Questions

A CPA, or Certified Public Accountant, is a professional accounting designation recognized globally. CPAs are licensed professionals who have met the education, experience and examination requirements set by the state boards of accountancy.

The steps to become a CPA can vary slightly depending on the state, but there are common steps that most individuals follow:

  • Obtain a bachelor's degree: Complete a bachelor's degree from an accredited college or university. While a specific major is not required, it is important to ensure you meet the educational requirements set by your state board.

Fulfill the educational requirements: Most states require a certain number of accounting and business credit hours. Ensure you take the required courses to meet these requirements.

  • Gain relevant experience: Many states require a specified amount of work experience in accounting under the supervision of a licensed CPA. This experience can be gained in public accounting, private industry, government, or other related fields.
  • Prepare for the CPA exam: Study and prepare for the CPA exam, which consists of four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG).

Take the CPA exam: Register for and take the CPA exam. Each state has its own application and registration process. Once you pass all sections of the exam, you are eligible to proceed to the next step.

  • Apply for licensure: Apply for a CPA license with the state board of accountancy in the state where you plan to practice. This usually involves submitting an application, providing necessary documentation, and paying the required fees.
  • Fulfill additional requirements: Some states may have additional requirements, such as ethics exams or background checks. Make sure to complete any additional requirements specified by your state board.
  • Maintain continuing professional education (CPE): After obtaining the CPA license, fulfill the ongoing CPE requirements to maintain your license and stay up-to-date with the latest developments in the accounting field.

The time it takes to become a CPA can vary depending on several factors, including your educational path, the time it takes to complete the exam, and the work experience requirement. On average, it can take around 2 to 3 years to fulfill all the requirements and become a licensed CPA.

In most cases, a bachelor's degree is required to become a CPA. However, some states may offer alternative pathways or options for individuals without a bachelor's degree. These alternative pathways often require additional education and experience.

Yes, most states require some form of work experience to become a licensed CPA. The specific requirements vary by state, but typically involve a certain number of years (ranging from 1 to 2 years) of accounting experience under the supervision of a licensed CPA.

The CPA exam is known for its rigor and challenging nature. It requires thorough preparation and dedication to succeed. However, with proper study materials, planning and disciplined study habits, many individuals have successfully passed the exam.

Yes, CPAs are required to fulfill continuing professional education (CPE) requirements to maintain their license. CPE requirements vary by state but typically involve completing a certain number of CPE hours over a specific.

Final Thoughts

When you start along the road to become a certified public accountant, it may feel as though you will never get there.

Although the length of study and licensing requirements make it a lengthy process to join this particular employment sector, it is worth it once you get your certification.

The career opportunities for professional advancement and continued learning mean that you will always have something new to aim for and fresh prospects to sink your teeth into, as well as a well paid and satisfying career.


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