CPA Certification

A certified public accountant (CPA) is a licensed accounting professional who has met educational and exam requirements for this credential. Among other duties, CPAs prepare financial statements and disclosures, analyze financial documents, and monitor their employers' financial health.

According to the National Association of State Boards of Accounting (NASBA), there were nearly 672,000 licensed CPAs in the United States as of Aug. 2024. Demand remains high, as the Society for Human Resource Management documented a significant shortage of CPAs in the U.S. labor market in 2023.

The process of becoming a CPA typically begins with earning a bachelor's degree in accounting. However, there are other paths you can follow. This guide covers the journey to CPA licensure in detail.

Why Get Certified as a CPA?

How Do You Qualify for the CPA Credential?

The CPA certification and licensing process varies among U.S. jurisdictions, with state-level regulatory bodies setting standards. However, licensing guidelines in all states share the so-called "three E's": education, experience, and examination.

You can follow multiple paths to meet your education and experience requirements, but the Uniform CPA Examination is used as a universal standard. The following subsections offer a detailed overview of the "three E's" and how each requirement can help you advance toward CPA licensure.

Educational Requirements

Details vary among states, but core educational requirements include:

• A bachelor's degree
• At least 150 credits or the equivalent
• Specific concentrations of accounting coursework

In most states, you do not need to major in accounting to meet CPA education requirements. However, an accounting bachelor's or master's degree offers the most direct and relevant preparation for CPA certification and licensure.

Some states have seen a push to reduce the educational requirements from 150 credits to the 120 credits covered in most standard bachelor's degree programs. In Jan. 2025, these efforts were codified into law in Ohio when state officials abolished the firm 150-credit requirement.

Professional Requirements

As with education, all states require CPA candidates to meet certain minimum experience levels, but details differ among jurisdictions. Generally, requirements include at least 2,000 hours of professional experience. In many states, you must also accrue those hours within a specific time frame.

Candidates usually must complete and document professional experience under the direct supervision of a licensed CPA. Their work must cover core accounting duties, such as:

• Preparing financial statements
• Attestation
• Auditing
• Tax preparation or advisory services

Some states also accept postsecondary teaching experience, but you cannot normally use education as a substitute for experience or vice versa.

CPA Exam Requirements

Every state includes a passing score on the CPA exam among its CPA certification requirements. This rigorous standardized exam, developed and administered by the Association of International Certified Professional Accountants, occurs in four sections.

Three of those four exam sections are required:

• Auditing and Attestation (AUD)
• Financial Accounting and Reporting (FAR)
• Taxation and Regulation (REG)

For the fourth section, you must choose one specialized discipline from a set of three options:

• Business Analysis and Reporting (BAR)
• Information Systems and Control (ISC)
• Tax Compliance and Planning (TCP)

Each section includes multiple-choice questions and task-based simulations of real-life accounting problems. You have four hours to complete each section, and you can sit for only one section at a time. However, all states mandate that you pass all four sections within a limited time — usually 18 months.

What Is Needed to Maintain CPA Certification?

Earning your initial CPA license is a major professional accomplishment. Your next challenge involves maintaining your credentials through the license renewal process.

States typically require CPAs to renew every 1-3 years. Continuing professional education (CPE) components form the backbone of the renewal process — most states require CPAs to keep their skills sharp and current through ongoing training.

You will need to complete a minimum number of documented CPE hours each renewal period to maintain your license eligibility. However, as NASBA notes, state-level rules are complex and subject to change. Always check the current standards that apply in the jurisdiction where you plan to practice.

Should You Get Multiple Certifications?

CPA certification aligns well with several other professional accounting credentials. By holding multiple certifications, you can combine the benefits that come with CPA licensure and elevate your appeal to a broader cross-section of potential employers. Multiple certifications may also enhance your earning potential.

Some of the adjacent credentials you may want to pursue include:

• Certified Fraud Examiner (CFE)
• Certified Internal Auditor (CIA)
• Certified Management Accountant (CMA)

Each certification has a unique qualification process.

Frequently Asked Questions About CPAs