How to Become a CPA: Everything You Need to Know

Did you know that only about 50% of people who set New Year’s resolutions stick with them for more than six months? Whether it’s running a marathon, learning a new skill, or advancing your career, it’s easy to start strong and lose momentum. I get it—life gets busy. But here’s the thing: becoming a CPA is like a marathon where persistence really pays off.

And guess what?

The finish line is packed with higher salaries, job security, and opportunities you never imagined. Let’s look at how to become a CPA and stay on track to make that CPA title yours.

Key Takeaways

• Certified Public Accountant (CPA): A CPA designation is a highly respected credential that opens doors to a wide range of accounting and financial careers.
• Become a CPA: Becoming a CPA requires meeting educational, exam, and experience requirements set by your state.
• Education: Most states require a bachelor’s degree and completion of 150 credit hours before applying for CPA licensure.
• CPA Exam: This exam is a key step in becoming a CPA. It covers areas like auditing, regulation, and financial reporting.
• Continuing Professional Education (CPE): CPAs must complete regular CPE credits to keep their license active and stay updated on the latest changes in accounting practices and regulations.

What You Need to Become a CPA

Getting your CPA license starts with meeting some important education requirements. Let’s break it down:

Start with a Degree

To kick off your journey, you’ll need a bachelor’s degree. Most people get theirs in accounting, but other business-related degrees like finance or business administration also work. The key is making sure you take the right accounting and business courses. You don’t need a master’s degree right away, but a lot of CPA candidates choose to get one to meet the credit hour requirements.

How Many Credit Hours Do You Need?

The National Association of State Boards of Accountancy (NASBA) requires you to complete 150 credit hours of education before you can get your CPA license. Some states let you sit for the CPA exam with just 120 hours, but you’ll still need to hit that 150 mark before you can officially become a CPA.

Filling in the Gap

Wondering how to bridge that credit gap if your bachelor’s only gave you 120 hours? A master’s degree in accounting or an MBA with a focus in accounting can help. Not only does it meet the credit requirement, but it also gives you a deeper understanding of the field, which is useful when you’re dealing with complex financial statements or tax laws.

Coursework You’ll Need

Each state is different, but most will want to see courses like:

• Taxation
• Auditing
• Financial Accounting
• Business Law

For example, California requires CPA candidates to complete 24-semester units of accounting subjects and 24-semester units of business-related subjects. Some of these will need to cover business law and other key topics.

Real-World Experience

Besides education, you’ll need work experience. Most states require 1 to 2 years of experience in areas like public accounting, government agencies, or private industries. The work needs to be supervised by a licensed CPA. During this time, you’ll apply what you’ve learned about financial records, tax compliance, and auditing to real-life scenarios.

Your experience should give you a taste of everything—from performing audits to handling financial planning.

This pathway may take a few years to complete, but each step gets you closer to becoming a CPA and unlocking new career opportunities.

The CPA Exam: Your Path to Certification

One of the most significant milestones in your Certified Public Accountant journey is passing the CPA exam. This exam is administered by the American Institute of Certified Public Accountants (AICPA) and is the same across all states. However, the requirements to apply for the exam can vary depending on the state in which you live.

Here’s what you’ll typically need to know:

• Age Requirement: In most states, you need to be at least 18 years old to sit for the CPA exam.
• Residency Requirement: Some states ask you to be a resident or work in the state to take the exam there.
• Social Security Number: Many states require a Social Security number as part of the application process.
• Ethics Exam: Some states, like California, also ask you to pass a separate ethics exam, testing your understanding of professional ethics in accounting.

CPA Exam Structure

The CPA exam is divided into sections that test your knowledge and skills in different areas of accounting:

• Auditing and Attestation (AUD): Covers the processes of audits, financial records, and reporting.
• Financial Accounting and Reporting (FAR): Focuses on accounting principles such as GAAP and IFRS.
• Regulation (REG): Tests your understanding of business law and taxation.

Additionally, you’ll choose a discipline section that aligns with your career goals. These could include:

• Business Analysis and Reporting
• Tax Compliance and Planning
• Information Systems and Controls

This lets you specialize in the area you plan to focus on in your accounting career.

Exam Format and Timing

The CPA exam includes three required core sections and the choice between one discipline section, each with a combination of multiple-choice questions and task-based simulations. The passing score is 75, and traditionally, you need to pass all sections within 18 months. However, some states now offer 30 months to complete the exam due to changes in the profession.

Preparing for the Exam

A strong prep plan is key to succeeding on the CPA exam. Most candidates use top CPA exam prep and practice exams to ensure they’re ready. I recommend staying up-to-date with changes to the exam format by checking the AICPA or NASBA websites.

Steps to Get Your CPA License

To become a CPA is a major achievement, showing you’re ready to handle complex financial work with integrity. Here’s what you need to know about the process:

Step 1: Check if You’re Eligible

Before you can apply for your CPA license, make sure you meet the specific requirements in your state. This usually includes:

• Earning a bachelor’s degree with the right mix of relevant courses in areas like finance and management.
• Completing the required credit hours (typically 150 hours total).
• Passing all parts of the CPA exam.
• Getting some hands-on experience working under a CPA.

Different states have their own rules, so be sure to check with your State Board of Accountancy to confirm your state’s exact requirements.

Step 2: Take the Ethics Exam (If Required)

Some states ask you to pass an ethics exam after you’ve completed the CPA exam. This test is all about making sure you understand the professional ethics you’ll need in your career as a CPA.

Step 3: Submit Your Background Check

Many states also require a background check. This might include:

• Fingerprinting
• Disclosing any past legal or disciplinary issues

It’s all part of making sure CPAs are trustworthy and ready to handle sensitive financial matters.

Step 4: Apply for Your CPA License

Once you’ve knocked out all the big steps—passing the CPA exam, completing any ethics test, and submitting your background check—you’re ready to apply for your CPA license. Here’s what to do:

• Gather everything you’ll need, like your transcripts, CPA exam scores, and proof of work experience.
• Fill out the application from your state’s Board of Accountancy.
• Pay any application fees. (These vary from state to state.)

Step 5: Wait for Approval

After you submit your application, your state board will review it. This can take a few weeks or even months. Once they approve everything, you’ll officially become a CPA, and you are ready to start your new career!

Each step gets you closer to joining the ranks of certified public accountants and opens the door to tons of job opportunities.

Keeping Your CPA License Active

Getting your CPA certification is a big accomplishment, but keeping it is just as important. The accounting world is always changing, with new laws and rules coming up often. To stay on top of things, CPAs have to complete Continuing Professional Education (CPE) to make sure they’re staying sharp and informed.

What Are CPE Requirements?

Each state has different rules for how many CPE hours you need to complete, but it usually falls between 40 to 120 hours over a one- to three-year period. Check with your state board to know exactly what’s required for you to maintain your license.

How Can You Earn CPE Credits?

There are plenty of ways to earn your CPE credits, including:

• Going to workshops, webinars, or conferences related to accounting.
• Taking college or university courses that cover financial topics.
• Completing online CPE courses designed specifically for CPAs.
• Attending professional development training in your field.
• Publishing articles or even teaching about accounting topics.

Staying up to date isn’t just about keeping your license—it’s about making sure you’re always at the top of your game, whether you’re handling financial statements, tax compliance, or giving financial planning advice.

This regular learning ensures that you’re always ready to tackle the newest challenges in the accounting profession!

Final Thoughts

Earning your CPA license is a journey filled with important milestones—meeting educational requirements, passing the CPA exam, and gaining work experience. It’s a lot to take on, but I believe staying focused on each step makes it manageable. The process can feel like a marathon, but with each accomplishment, you get closer to reaching your goal.

Just like in a marathon, there may be moments when you feel like slowing down, but staying persistent will lead you to the rewards at the end—whether it’s job stability, better pay, or new career opportunities. Keep pushing forward, and you’ll cross that finish line.

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