The National Association of State Boards of Accountancy (NASBA) is tackling the CPA pipeline crisis by attracting and educating future CPAs. Aspiring accountants need to understand the steps to become a Certified Public Accountant (CPA): completing educational requirements, passing the Uniform CPA Exam, gaining relevant experience, and maintaining skills through continuing professional education.

Educational Requirements for CPA

How to become a CPA  in Florida you need to meet certain educational requirements, which vary by state. 

Here’s a breakdown

Bachelor’s Degree Requirement You must earn a bachelor’s degree from an accredited institution. Typically, this degree is in accounting or a related field like business administration. Ensure your coursework aligns with CPA exam and licensure requirements.

Credit Hour Requirements NASBA requires 150 semester hours of education for CPA licensure. Some states, like Florida, allow you to sit for the CPA exam after 120 semester hours, with the remaining 30 hours completed before licensure.

Bridging the Credit Gap To meet the 150-hour requirement, many pursue a master’s degree in accounting or an MBA with an accounting focus. This additional education helps bridge the credit hour gap and enhances your understanding of the field.

Specific Coursework States like Florida require specific coursework to ensure a solid foundation in accounting and business. For example, Florida mandates 24 semester hours in upper-division accounting courses and another 24 in upper-division business courses, including three hours in business law.

Experience Requirements for CPA

Besides education, you must meet your state board’s experience requirements, which typically include:

Duration of Work Experience CPA licensure generally requires 1 to 2 years of accounting-related work experience. This is vital for applying theoretical knowledge practically and bridging the gap between academic learning and professional application.

Types of Acceptable Work Your work experience must be varied and relevant, involving roles in public accounting firms, industry, government, or academia. Responsibilities should cover areas like accounting, auditing, tax laws, financial planning, or consulting services.

Supervision by a Licensed CPA This work experience must be completed under a licensed CPA’s supervision. This ensures you receive guidance and mentorship from experienced professionals.

The CPA Exam: A Crucial Step Towards Licensure

Overview of the CPA Exam Managed by the American Institute of Certified Public Accountants (AICPA), the Uniform CPA Examination includes three core sections (Auditing and Attestation, Financial Accounting and Reporting, and Regulation) and one discipline-specific section.

Core Sections The core sections are:

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

These sections assess your understanding of auditing standards, financial accounting principles, and regulatory requirements.

Discipline Sections Candidates can choose a discipline-specific section that aligns with their career path, fostering a more specialized and adaptable accounting workforce.

Exam Format and Duration Each core section lasts four hours, combining multiple-choice questions with task-based simulations to test practical knowledge. The passing score for each section is 75 on a scale of 0 to 99.

Additional Requirements and Considerations

Timeframe for Passing All Exam Sections Candidates traditionally have 18 months to pass all sections. Some states are extending this to 30 months for greater flexibility.

Preparation Tips for the CPA Exam Comprehensive study and review courses are crucial. Use resources from the AICPA and NASBA to stay updated on exam content, structure, or requirements.

Applying for a CPA License

Confirming Eligibility Before applying for licensure, ensure you meet all requirements established by your state board, including education, passing all exam sections, and fulfilling work experience under a licensed CPA.

Application Process and Approval Once you meet all prerequisites, submit your licensure application with all necessary documentation and fees to your state board. After review, you’ll receive notification of your licensure status.

Maintaining CPA Certification

Continuing Professional Education (CPE) Requirements CPAs must complete CPE requirements to stay current with changes in laws, regulations, and practices. These requirements vary by state but generally involve completing a set number of education hours over one to three years.

Methods for Earning CPE Credits CPAs can earn CPE credits through activities like attending workshops, completing relevant courses, participating in professional development programs, publishing, and teaching.

Conclusion 

Becoming a CPA involves meeting educational criteria, passing the CPA exam, fulfilling state-specific requirements, gaining relevant work experience, and committing to continuous education. This ensures CPAs are well-equipped with the knowledge, ethics, and skills to excel in the accounting profession.