How to Become a Certified Public Accountant

A certified public accountant (CPA) is a licensed accounting professional who meets some of the highest standards in the industry. Eligible to perform specialized audits and represent tax clients before the IRS, CPAs typically have access to higher wages and more career opportunities than general accountants.

Becoming a CPA can offer greater job security and credibility, but the process requires a significant investment in education, experience, and licensure. To earn the title, you must meet your state's licensure requirements, which usually include examination and professional development. Learn how to become a CPA, and see if the pathway is right for you.

Steps to a CPA Career

Required Education for a CPA

In most states, CPA licensure requires a minimum of 150 credits, including a bachelor's degree with 120 credits and a set number of credits in business and upper-level accounting courses. Some states also mandate specific accounting courses in areas like intermediate accounting, cost accounting, income tax, and auditing.

While not required, many CPA candidates choose to pursue a master's degree to fulfill the additional 30 credits. A master's degree often provides the opportunity to specialize in a specific accounting subfield and may qualify graduates for leadership roles later on.

Some states are introducing ways to ease the 150-credit requirement. In Ohio, for example, CPAs no longer need the additional 30 post-bachelor's credits for licensure. Additionally, AICPA and NASBA have proposed a competency-based pathway to help students complete the additional credits without more education.

• Learn about master's degree programs in accounting
• Find out more about bachelor's-to-master's programs in accounting
• Get information on graduate certificates

Optional Certifications and Degrees

CPAs can enhance their qualifications with specialized degrees, such as a master's in taxation or a Ph.D. in accounting. These advanced degrees may help them pursue leadership roles in a subfield of accounting or teaching positions in colleges and universities.

CPAs can also improve their earning and leadership potential with professional certifications, such as the certified fraud examiner, certified internal auditor, or certified management accountant credentials.

Each of these certifications requires an examination, professional experience, and membership in the certifying organization. You must also renew these credentials each year, which requires 20-30 continuing education credits.

Required Experience for a CPA

Every state has its own licensing guidelines in regards to professional experience, but they typically require 1-2 years worth of full-time experience within a three- to five-year period of time.

Most states welcome experience from a variety of accounting-related positions, such as staff or associate accountant, auditor, and advisory roles. While many states require candidates to complete their experience after their bachelor's degree, some also accept internship experience, as long as it is supervised by a licensed CPA.

Required Exam for CPAs

To qualify for state licensure, all CPAs need to pass the Uniform CPA Examination with NASBA. The 16-hour test comprises four parts, including three mandatory core sections and one decision section (choice among three options):

Core sections:

• Auditing and Attestation (AUD): Focuses on general auditing process and responsibilities.
• Financial Accounting and Reporting (FAR): Covers financial statements and accounting standards.
• Taxation and Regulation (REG): Examines tax and business laws and ethics.

Discipline sections:

• Business Analysis and Reporting (BAR): Explores financial analysis, planning, and techniques.
• Information Systems and Control (ISC): Tests on data and information systems management and security.
• Tax Compliance and Planning (TCP): Covers tax preparation, planning, and compliance.

AICPA scores exams from 0 to 99 and releases them every month or quarter, depending on the section. To qualify for licensure, test-takers need a minimum score of 75. In most states, candidates can sit for the exam once they finish their bachelor's degree.

Should I Become a CPA?

Becoming a CPA can be difficult and demanding, but there are rewards for those who push through, including higher wages and better career opportunities. Here are some of the pros and cons of becoming a CPA:

The Job Hunt

CPA and accounting job-seekers have ample support available to them, starting with their school's career services center and career fairs. While still in school, CPA candidates can also leverage their internships and alumni networks.

After graduation, many professional accounting organizations offer help matching new graduates with career opportunities. Local industry events and career fairs may also prove useful, as can accounting-specific job boards, such as the following:

• Accounting Jobs Today: This board offers a large collection of accounting- and finance-related job openings and offers access to career resources and coaches.
• American Accounting Association (AAA): With hundreds of accounting jobs from across the country, the AAA's Career Center connects job-seekers to some of the industry's top employers and resources.
• AICPA Global Career Hub: In addition to current job listings, AICPA's Global Career Hub offers career advice and career services assistance and resources.
• iHire Accounting: One of the largest accounting-related job boards, iHire Accounting lists thousands of job posts that you can filter by location, position, and skills.

Upward Mobility

CPA licensure can lead to many senior-level accounting and finance opportunities. Many CPAs transition into high-level positions after gaining experience in specialized accounting roles.

Here are two possible career options for experienced CPAs:

Financial Manager

Financial managers take responsibility for the financial operations and health of an organization. They set financial goals, ensure the organization meets legal requirements, and identify and analyze financial risks and opportunities. Many employers look for financial managers with advanced credentials like a CPA and relevant experience.

Median Annual Salary (2024): $161,700

Chief Financial Officer (CFO)

CFOs set a financial direction for organizations, including creating financial plans, policies, and practices for everyone to follow. They supervise the financial activities and make decisions that impact the organization's financial health. CFOs often need extensive business and financial experience, plus graduate education and advanced credentials like a CPA.

Median Annual Salary (2024): $206,420

Questions About How to Become a CPA