CPA Requirements

What You Need to Know About Becoming A CPA

In the world of accounting, CPAs are the elite of the elite—like the Spartans of finance. Becoming a Certified Public Accountant (CPA) sets you apart with specialized knowledge, tested competence, and a state-issued license that proves your expertise in handling complex financial processes.

CPAs enjoy significantly better job security, expanded career paths, and a higher income than the average accountant. Studies show they make about $40,000 more per year, and that’s just the beginning. Many business owners and individuals trust CPAs with their most sensitive tax documents, business strategies, and financial planning.

A CPA can help businesses navigate complex tax laws, lower their tax liability, and develop strategic tax planning strategies. Whether you want to handle your own taxes better, guide clients during tax season, or climb the ranks in an accounting firm, earning your CPA license is a career game-changer.

But how do you become a CPA? And when should you get a CPA certification?

This guide walks you through everything you need to know—from education to exams to license maintenance.

---

But, what is a CPA exactly?

CPAs, otherwise known as Certified Public Accountants, are financial advisors who have passed the CPA exam and satisfied the workplace requirements necessary to qualify. Rather than being just a job title, the CPA credential is a classification of accounting professionals that gives them more flexibility in their career path.

As a result, they’re qualified for a wide range of work including:

• Tax consultants
• Auditors
• Business advisors
• Tax preparers for complex tax situations
• Strategic planners who help file business returns, manage tax documents, and comply with the Internal Revenue Service (IRS)

They also assist with:

• Filing your own taxes
• Managing rental property income and deductions
• Navigating foreign accounts
• Using tax software to file accurate returns

Whether you’re a tax pro, a business owner, or self-employed, a CPA plays a key role in ensuring your expenses and deductions are properly documented, helping you save money and avoid surprises in your tax bill.

In this article, we’ll discuss:

---

Requirements for CPA licensure

The requirements for CPA licensure generally fall into three categories:

1. Education Requirements: The amount and kind of formal education needed to become a CPA.
2. CPA Exam Requirements: The educational and workplace requirements needed to sit for the exam.
3. License Requirements: The different kinds of certifications and work experience you need to qualify for your license.

---

1. CPA Education Requirements

The first thing you need to worry about when getting your CPA is the education requirements. While the education requirements will vary depending on what state you’re taking your exam in, there’s a rule that stays virtually the same regardless of what state you test in.

Known in the CPA community as the “150-hour rule,” this rule states that the minimum requirement to take the CPA exam is a bachelor’s degree with at least 150 hours of coursework from an accredited institution.

This is usually done by doing one of the following:

• Taking a 4-year bachelor’s degree as well as one year towards a master’s
• Taking a 4-year accelerated program towards a bachelor’s degree that gives you the required 150 hours
• Taking a 4-year bachelor’s degree as well as 30 hours of non-degree courses

From here, the exact education requirements will vary depending on the state. Most state boards require a degree in accounting, which will satisfy those education requirements, but some states allow you to become a CPA with a bachelor’s degree of any kind.

However, this usually comes with the stipulation that you take a certain amount of accounting classes at different levels, as well as experience in the field, to make up for the lack of education.

For example, you may end up having to take an additional 24 semester hours of specific accounting courses or provide proof of extensive work experience under a licensed CPA.

---

2. CPA Exam Requirements

Another part of the reason that the CPA process is so tough is because there are no standard set of CPA requirements to sit for the exam. Instead, like the education requirements, they vary by state.

This means that while you might qualify for the CPA exam in one state, you might not qualify in another. So, it’s important to know which state you plan on taking the exam in and preparing accordingly.

Luckily, many states have overlapping requirements, the most common including:

• Being at least 18 years of age
• Having 150 semester hours of credit in Accounting or a related field such as business or finance
• Possessing a Social Security Number

However, other variables include whether you’re a U.S. citizen, your residency status, and the specific credits required for certain topics such as auditing, business taxes, or financial accounting.

Some states allow candidates to sit for the CPA exam with just 120 semester hours, as long as they complete the full 150 hours before applying for the license.

It’s highly recommended to visit your state’s Board of Accountancy website to verify the latest CPA exam requirements.

---

3. CPA License Requirements

The requirements to get your CPA license are going to depend on what state you apply to get your license in (are you seeing a pattern here?). 

BUT, there is one requirement that is the same in all states and that is the scores you need to get your license.

Passing the CPA exam

The CPA exam consists of four parts:

• Auditing and Attestation (AUD)
• Financial Accounting and Reporting (FAR)
• Regulation (REG)
• Discipline (Choose One of Three Options):
  As part of the CPA Evolution initiative, candidates now choose one discipline section in addition to the three core sections. The discipline options include:
  • Business Analysis and Reporting (BAR) – Ideal for those interested in financial reporting, data analytics, and advisory roles.
  • Information Systems and Controls (ISC) – For candidates focused on IT governance, data security, and internal controls.
  • Tax Compliance and Planning (TCP) – Designed for individuals specializing in complex tax planning, tax return preparation, and strategic tax advice.

And it’s notorious for how difficult it is. So passing it will be a large part of your process towards becoming a CPA.

Each part is four hours long and includes multiple-choice questions, task-based simulations, and written communication tasks. You must pass all four sections within 18 months of each other.

A passing score is 75 on a scale of 0-99. This score is a weighted combination of various question types and does not equate to a traditional percentage.

Then, the Ethics Exam

Most states require candidates to pass the AICPA Ethics Exam. This test helps prepare CPAs for real-world ethical decisions. It consists of 40 multiple-choice questions and can be taken online or by mail. Best part? It’s open-book and can be taken as many times as needed to pass.

Now, Your Workplace Experience

Workplace experience is another key requirement. In general, states require at least one to two years of experience in accounting or finance-related roles. This can include:

• Working for a CPA firm
• Managing business returns or tax documents
• Providing tax advice or tax preparation services

Some states allow experience in volunteer roles or working under a CPA, even in positions involving foreign accounts, rental property finances, or use of tax software.

Lastly, maintaining your license

Congratulations, you’ve finally received your license! But that doesn’t mean the process is over. Once you’ve become a CPA, you still need to maintain it.

Continuing Professional Education (CPE) is the act of continuing to participate in courses that satisfy your state’s State Board of Accountancy requirements. Each state has different requirements regarding the following specifics:

• Annual renewal date: The date by which you must apply to renew your license.
• CPE reporting period: The period of time in which you must complete your CPE requirements.
• The general number of hours required: Each state has their own number of CPE required.
• The specific courses required: Each state has their own specific requirements for courses that satisfy their CPE.
• The number of hours required for specific courses: Each state has their own specific requirements for the number of hours required for each course.
• The type of course required: Each state has different requirements for the type of CPE courses required.
• Your area of employment: Different areas of employment will have different course requirements and number of hours.

It’s important to stay on top of your state’s board requirements since they can vary wildly. While most states require 40 hours per year, some have different requirements. One state may require only 20 hours of CPE, with 8 of those hours being in Regulation, while another might demand 80 hours of CPE, with only 15% of it being published material.

---

In Conclusion… Key Notes

Not only is the process of becoming a CPA a hard one, it’s also an ongoing one. Getting your CPA qualifications might seem overwhelming, but the rewards are life-changing. Just remember to keep in mind:

• CPA requirements can be divided into three categories: education requirements, requirements to sit on the exam, and requirements to get your actual license.
• Every single aspect of becoming a CPA is contingent on the state you practice in, so make sure to stay on top of your state’s State Board of Accountancy requirements.
• Passing the CPA exam will be the hardest part of getting your CPA, hands down. Be prepared for a major time commitment.
• Make sure you’re working on getting your workplace experience while you work on other parts of the CPA process.
• Once you get your license, the fun doesn’t stop there. Stay on top of your state’s CPE requirements or you could risk losing your license.

When should you get a CPA? Ideally, before launching your career or shortly after finishing your bachelor’s degree in accounting. The earlier you start, the sooner you can begin reaping the benefits in pay, flexibility, and respect in the industry.

Whether you’re self-employed, working with an accounting firm, or a tax pro aiming to expand your services, hiring a CPA or becoming one yourself can save money, improve financial processes, and help make more informed business decisions.

Now that you have everything you need to know about becoming a CPA… good luck! For more help, download our free guide on how to pass the CPA exam and launch your career today.

---