2. How to become a Certified Public Accountant (CPA)

Becoming a Certified Public Accountant (CPA) involves multiple steps and years of education.  Getting an accounting degree is the first step and obtaining and maintaining your CPA license is the final step.

CPA licenses are granted by a state in the U.S., so becoming a CPA takes place at a state level: you get a CPA license from a specific state, usually the state of your residency.  It is not to say that once you have become a CPA in one state you can’t become a CPA in another state: you can, but you will usually need to apply to the other state for a CPA license there.  You can be a CPA in multiple states.  There is also movement towards making CPA licenses more transferrable between different states (i.e., the CPA mobility initiatives).

Each state has its own list of requirements for candidates to become a licensed CPA so you will want to check with your state Board of Accountancy for a definite list.  Typical requirements may include:

• Education: you will usually need to have 150 credit hours of education with an accounting or business related major.  One hundred fifty (150) credit hours usually means that you have received a bachelor’s degree or a master’s degree.
• CPA exam: you will need to pass the CPA exam with a score of 75%+ for each of the four parts.
• Citizenship or residency: some states require you to be a U.S. citizen or a resident of the state.
• Social security number: some states may require you to have a U.S. social security number.
• Age: some states may have an age requirement (for example, 18 or 21 years sold).
• Work experience: some states may require work experience (for example, 1 or 2 years of public accounting experience).
• Ethics training: some states may require you to take an ethics test.

One of many possible paths to become a CPA may be as follows:

1. Study accounting in an undergraduate accounting program (4 years) and obtain your bachelor’s degree.  This usually gives you 120 credit hours.
2. Study accounting in a graduate accounting program (1-2 years) and obtain your master’s degree in accounting.  This usually gives you 30 more credit hours for a total of 150 hours.
3. Study, apply for, and take the CPA exam.  Sometimes you can do this after you’ve got 120 credit hours after you finish your bachelor’s degree and before your master’s degree; in this case, you will take the CPA exam but won’t be able to get your CPA license yet (see below).  Other times, you can postpone taking your CPA exam until you get your first accounting job.
4. After graduation, start your work career with a first accounting job.  Some companies will reimburse you for the costs of the CPA application fees and preparation materials; this is especially true for public accounting firms.  Some of them could even pay you a one-time bonus if you pass your CPA exam within the first 1-2 years on the job.  So, as noted above, you can try to take your CPA exam after your bachelor’s degree and cover related CPA fees and costs yourself.  Or you can wait until you start working to take the advantage of possibly having your CPA expenses reimbursed by your employer.
5. After gaining enough work experience (depends on each state) and passing your CPA exam, apply for a CPA license in your state.
6. Once you have received your CPA license, celebrate!  It is a big achievement and will serve you well in your career.
7. Maintain your license by obtaining annual required continuing professional education (CPE) hours.

There may be other paths to get to your CPA license, and the one we noted above is just an example of the sequence of steps to take.

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