How to become a CPA in the USA?

We’ve already discussed why you should become a CPA in the US, but how can you achieve this goal? 

Becoming a Certified Public Accountant (CPA) in the United States is a significant professional milestone that offers a wealth of opportunities in the accounting and finance sectors. The journey to obtaining this respected credential involves meeting specific educational requirements, gaining relevant work experience and successfully passing the Uniform CPA Examination. This article will outline the essential steps to guide you through becoming a CPA.  

What is a CPA? 

A CPA, is a professional who is licensed to provide accounting services to individuals and businesses. CPAs are qualified to offer a range of services, including auditing financial statements, preparing tax returns, and providing financial planning and consulting. They must pass the CPA exam and meet certain education and experience requirements. CPAs play a crucial role in ensuring the accuracy and integrity of financial reporting, and they often work in public accounting firms, corporations, government agencies, or as independent consultants.  

How does a CPA differ from an regular accountant?  

While all CPAs are accountants, not all accountants are CPAs. Here are a few key differences: 

• Certification: CPAs have passed the CPA exam and met additional state certification and experience requirements. Regular accountants may not have this certification. 

• Services provided: CPAs are authorized to perform a broader range of services, such as auditing financial statements and representing clients in front of the IRS. Accountants may be limited to tasks like bookkeeping, tax preparation, and financial analysis. 

• Regulation: CPAs are regulated by state boards of accountancy, which enforce professional standards and ethics. Regular accountants aren’t typically subject to such stringent regulatory oversight. 

• Continuing education: CPAs must complete ongoing education to maintain their license and stay current with new laws and regulations. Regular accountants may not have this requirement. 

• Job opportunities: CPAs often have more job opportunities and may command higher salaries due to their specialized skills and qualifications. 

In short, while both CPAs and accountants manage financial records and provide valuable financial advice, CPAs have additional certifications, responsibilities, and regulatory oversight.  

Educational requirements to become a CPA 

A foundational step toward CPA licensure is fulfilling the educational prerequisites. All states mandate that candidates complete a minimum of 150 semester hours of post-secondary education from an accredited institution. This typically includes earning a bachelor’s degree, which accounts for approximately 120 credit hours, necessitating an additional 30 credit hours to meet the requirement. These extra hours can be obtained through various means, such as enrolling in graduate-level courses or pursuing a master’s degree in accounting or a related field. 

Do I need a master’s degree to become a CPA? 

While obtaining a master’s degree is a common pathway to fulfill the 150-credit-hour requirement, it is not an absolute necessity. Candidates can choose to take additional undergraduate or graduate courses without completing a full master’s program. The key is to ensure that the total educational credits meet the 150-hour threshold and encompass the necessary accounting and business coursework as specified by your state’s Board of Accountancy. 

Required work experience to become a CPA  

In addition to educational qualifications, aspiring CPAs must acquire practical experience in the field. Most states require candidates to complete at least one year (approximately 2,000 hours) of relevant accounting experience under the supervision of a licensed CPA. This experience can be gained in various settings, including public accounting firms, corporate finance departments, government agencies or nonprofit organizations. The objective is to ensure that candidates have practical exposure to accounting principles and practices before obtaining licensure. 

Uniform CPA examination 

The Uniform CPA Examination is a pivotal component of the CPA licensure process. The exam is divided into four sections: 

1. Auditing and attestation (AUD) 

2. Financial accounting and reporting (FAR) 

3. Regulation (REG) 

4. Business environment and concepts (BEC) 

Candidates must pass all four sections within a rolling 18-month period, achieving a minimum score as determined by the AICPA. The exam is designed to assess the knowledge and skills necessary for entry-level CPAs to protect the public interest.  

Licensure and continuing professional education (CPE) 

Upon successfully passing all sections of the CPA exam and meeting the educational and experience requirements, candidates can apply for licensure through their state’s Board of Accountancy. Once licensed, CPAs are obligated to adhere to ethical standards and fulfill Continuing Professional Education (CPE) requirements to maintain their license. CPE ensures that CPAs remain informed about the latest developments and practices in the accounting professions   

Recent developments

It’s noteworthy that the accounting profession is continually evolving. As of October 2024, discussions have emerged regarding alternative pathways to CPA licensure to address workforce shortages. Proposals suggest allowing candidates to substitute the traditional 150-credit-hour education requirement with additional work experience. These changes aim to reduce barriers to entry into the profession while maintaining the high standards associated with the CPA designation.  

Starting the process to become a CPA requires dedication and a commitment to meeting rigorous standards. By fulfilling the educational and experience requirements and successfully navigating the CPA examination, you can attain a credential that significantly enhances your professional standing in the accounting field.

How Brewer Morris can help you advance your CPA career 

A career as a CPA opens doors to diverse opportunities in accounting, finance, and strategic advisory roles. Whether you aspire to specialize in audit, tax or financial management, obtaining your CPA designation positions you as a trusted expert in the field. 

If you’re looking for your next CPA opportunity, explore our latest accounting and finance roles. Alternatively, if you’re seeking to hire a skilled CPA for your organization, submit a brief and a member of our team will be in touch.