CPA Requirements to Become a CPA

Starting the journey to become a CPA can feel like a big task, especially when you first look at the CPA exam application process.

When I started, I had a million questions about how everything worked, from meeting the education requirements to what happens if you need to reschedule a test.

But here’s the good news.

You’re not alone in feeling this way.

In fact, a recent report from the CPA Horizons 2025 initiative showed that many candidates, just like you, face these challenges and uncertainties. More than 5,600 CPAs shared over 75,000 insights on navigating this process, highlighting the common hurdles and the most effective strategies to overcome them.

To help you navigate these challenges, I’ve compiled answers to some of the most frequently asked questions about CPA requirements. Let’s break it down so you can focus on what matters—passing the exam and becoming a CPA.

Key Takeaways

• Complete the Required Education: Finish 150 semester hours of college coursework, including a bachelor’s degree, typically in accounting or business.
• Gain Relevant Work Experience: Accumulate at least one year of work experience (around 2,000 hours) under the guidance of a licensed CPA, as required by most states.
• Pass the CPA Exam: Prepare for and pass the CPA exam, which includes three Core sections and one Discipline section that you select based on your interests.
• Fulfill Licensure Requirements: After passing the exam, meet additional state-specific requirements, such as taking an ethics exam (if required) and submitting your application for a CPA license.
• Complete Continuing Education: Stay current with industry standards and maintain your CPA license by completing Continuing Professional Education (CPE) hours each year.

What Are the CPA Requirements?

Becoming a CPA involves meeting a set of requirements that ensure you’re fully prepared for the demands of the profession. Each state may have slightly different requirements, but generally, the process follows a similar structure across the United States.

The American Institute of CPAs (AICPA) sets the standards for the CPA exam, ensuring that candidates who pass and become CPAs can handle the complexities of the accounting profession.

Here are some of the most common CPA requirements.

Complete Education Requirements

The first step in becoming a CPA is to meet the education requirements, which are crucial for ensuring you have the knowledge needed to succeed in the field.

• 150 Semester Hours: All states require you to complete 150 semester hours of college education, which typically includes earning a bachelor’s degree in accounting or business. However, a standard bachelor’s degree usually only covers 120 semester hours. This means you’ll need to take an additional 30 hours of coursework to meet the 150-hour requirement. These extra courses can be in accounting, finance, or other business-related subjects. The goal is to make sure you have a well-rounded education that covers all the important areas you’ll need to know as a CPA, such as accounting principles, financial reporting, auditing, taxation, and business law.

• 120 Hours: Some states do allow candidates to sit for the CPA exam after completing only 120 semester hours, but these states still require 150 hours for licensure. This creates an important distinction: while you might be able to take the exam with 120 hours, you won’t be able to obtain your CPA license until you complete the full 150 hours. It’s crucial to check the specific requirements of the state where you plan to become licensed, as they can vary significantly.

For many people, meeting these requirements might mean pursuing a master’s degree. Common concentration areas include accounting or business administration, as these are usually aligned with the extra credit hours needed. However, each state may have slightly different rules about what counts toward the 150 hours, so it’s important to check the specific requirements in the state where you plan to get your CPA license.

Finish Experience Requirements

To become a CPA, it’s not just about education—you also need hands-on experience. Here’s what you need to know about the experience requirements:

• 1 Year of Work Experience: Most states require you to have at least one year of relevant work experience, which is about 2,000 hours. I remember thinking that’s a lot of time, but it really helps to prepare you for the real world of accounting.
• Supervision by a Licensed CPA: This experience must be gained in connection with a supervising licensed CPA. It’s like having a mentor who guides you through the practical side of accounting.

The kind of work you do during this time can vary, but it usually includes tasks like auditing, where you check financial records to ensure they’re accurate. You might also work on tax preparation, helping people or businesses with their taxes, and financial reporting, which involves preparing financial statements and reports.

If you’re like me and interested in specific areas like financial advisory or management advisory, getting experience in these fields while working under a licensed CPA can be especially helpful. This not only meets the licensure requirements but also gives you valuable insights that can boost your career in the future.

CPA Exam Requirements

One of the most critical steps is passing the Uniform CPA Examination. It consists of three four-hour core sections (you must pass all three) and one four-hour discipline section of your choice.

Here’s a breakdown of the exam:

Pass the Core Sections

• Auditing and Attestation (AUD): This section tests your understanding of the auditing process, including planning, internal controls, evidence collection, and ethical responsibilities. It ensures that you can conduct audits according to the standards set by regulatory bodies.
• Financial Accounting and Reporting (FAR): FAR tests your knowledge of financial accounting and reporting standards, focusing on both U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). You’ll be expected to demonstrate skills in preparing, presenting, and analyzing financial statements across various entity types, including corporations, non-profits, and governmental organizations. FAR emphasizes recent changes to reporting standards and requires an understanding of financial statement elements, revenue recognition, and leases.
• Regulation (REG): The REG section covers essential aspects of business law, federal taxation, and the responsibilities of a CPA. This includes taxation principles for individuals, businesses, and property transactions, as well as the ethical and legal obligations CPAs must uphold in their practice. REG also assesses knowledge of the Internal Revenue Code and its application to compliance, planning, and regulatory issues, making it critical for candidates focused on tax and regulatory practices.

Pass One Discipline Section

• Business Analysis and Reporting (BAR): This section focuses on financial statement analysis, cost accounting, and financial management. It also includes topics related to information systems, technology, and data management, reflecting the evolving role of CPAs in business.
• Information Systems and Control (ISC): ISC tests your knowledge of information systems, cybersecurity, and internal controls. This section is crucial for CPAs involved in the technological aspects of accounting and financial reporting.
• Tax Compliance and Planning (TCP): TCP covers advanced topics in taxation, including tax strategy, planning, compliance, and regulation. This section is ideal for those who wish to specialize in tax advisory roles.

Each part of the CPA exam is tough, and you need to score at least 75 to pass. If you don’t pass a section, you can retake it, but you’ll need to pass all required sections within 18 to 30 months to avoid having to retake any expired sections.

CPA License Requirements

After passing the CPA exam, there are still a few steps you need to take before you can officially call yourself a CPA. These licensure requirements vary by state, but they generally include:

Pass an Ethics Exam

Some states require you to pass an additional ethics exam to ensure you understand the ethical standards expected of CPAs.

Submit an Application

Once you have met the other requirements, you’ll need to submit an application for licensure. Make sure to check your state board for any required documentation and fees.

Once you have met all the requirements and your application is given the stamp of approval, you will receive your CPA license. This license is your ticket to practicing as a Certified Public Accountant, whether you choose to work in public accounting, corporate accounting, financial advisory, or management advisory roles.

Keep up CPE Credits

It’s also important to remember that maintaining your CPA license requires ongoing effort. Most states mandate that CPAs complete Continuing Professional Education (CPE) hours annually to keep their license active. This ongoing education ensures that CPAs stay up-to-date with the latest developments in the accounting field and continue to maintain their professional competence. This part is made simple once you find a solid CPE course for CPAs.

Special Considerations for International Candidates

If you are an international candidate seeking a CPA license in the United States, you must meet the same requirements as domestic candidates. However, there are a few additional steps you may need to take. For example, your educational credentials must be evaluated to ensure they meet U.S. standards. Additionally, you may need to demonstrate proficiency in English, as the CPA exam is administered in English.

International candidates should also be aware that some states may have specific requirements regarding residency or work authorization. It’s essential to research the requirements of the state where you plan to take the CPA exam and apply for licensure to ensure you meet all necessary criteria.

Conclusion

Becoming a CPA involves navigating several key steps, from meeting education and experience requirements to passing the CPA exam and obtaining your license. While the process can seem daunting at first, breaking it down into small, actionable steps can make it more straightforward.

Ensure you complete the necessary coursework, gain valuable work experience, and understand the CPA exam’s structure and sections. After passing the exam, fulfill your state’s additional licensure requirements and commit to ongoing professional education to maintain your certification. By following these steps, you’ll be well on your way to achieving your CPA designation and advancing your career in accounting.

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