All You Need To Know About CPA Course | Requirements, Courses, Fees, Eligibility

Businesses and nonprofit organizations highly value CPAs due to their comprehensive training in crucial areas such as tax law, auditing procedures, management practices, and other essential aspects of financial operations in the business sector.

Becoming a CPA involves successfully completing the CPA course that serves as a demonstration of your mastery of the technical skills required to offer services in financial accounting, financial reporting, auditing, attestation, regulations, business environments, and business concepts.

In this article, you’ll find all you need to know on how to become a CPA as we outline the step-by-step guide on how to get a CPA license, eligibility requirements, and lots more; carefully read through.

What Is CPA?

A certified public accountant (CPA) is an accounting professional who has met certain education, exam, and experience requirements for licensure by a state board of accountancy. In the United States, CPA or Certified Public Accountant is the highest designation in accounting and finance that one can achieve, and it also promises global recognition for all the right reasons. 

To become a CPA, you’ll need to pass an exam demonstrating you have mastered the technical skills necessary to provide services for financial accounting, financial reporting, auditing, attestation, regulations, business environments, and business concepts.

Why Should I Become A CPA?

Becoming a Certified Public Accountant (CPA) can offer several benefits, both professionally and personally. Here are some reasons why you might consider becoming a CPA:

1. Professional Recognition

CPAs are highly respected in the business and financial world. Achieving the CPA designation demonstrates a high level of expertise and commitment to the field of accounting.

2. Career Opportunities

Many employers, especially in accounting firms, require or prefer candidates with the CPA designation. It can open doors to a wide range of career opportunities in areas such as public accounting, corporate finance, government, and consulting.

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3. Job Security

The demand for qualified accountants, especially CPAs, remains strong. This can provide a sense of job security and stability in your career.

4. Global Recognition

The CPA designation is recognized internationally, which can broaden your career options and make you more marketable on a global scale.

5. Specialized Knowledge

The CPA exam covers a comprehensive range of accounting and business topics, ensuring that CPAs have a well-rounded understanding of financial concepts. This knowledge can be applied in various roles and industries.

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6. Career Advancement

CPAs often have better prospects for career advancement. Many leadership positions in finance and accounting require or prefer candidates with the CPA designation.

7. Ethical Standards

CPAs are held to high ethical standards and are expected to adhere to a code of professional conduct. This commitment to ethics can enhance your reputation and credibility in the business world.

 As a trusted business advisor and financial expert, your credibility is essential to you and your client’s success. By becoming a CPA, you’re not just showing your clients that you know what you’re talking about; you’re showing them that you’ve been tested on it too. That’s important because it helps build trust with clients by giving them confidence in your advice.

8. Increased Earning Potential

On average, CPAs tend to earn higher salaries than non-CPAs in similar roles. The investment in obtaining the CPA designation can pay off in terms of increased earning potential throughout your career.

9. Diverse Career Paths

CPAs are not limited to traditional accounting roles. The skills and knowledge acquired through the CPA process can open doors to diverse career paths, including finance, management, and consulting.

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Eligibility For A CPA Course

Individuals aspiring to become Certified Public Accountants (CPAs) need to possess a bachelor’s degree and fulfill additional educational requirements. The specific educational criteria for the CPA credential vary as each state establishes its own standards. Nevertheless, in many states, prospective CPAs are mandated to accumulate 150 credits, which typically translates to approximately 30 credits beyond the scope of a standard bachelor’s program.

Every state has its CPA exam prerequisites, but some standard eligibility criteria are:

• At least Graduation or equivalent degree
• 150 semester hours of college courses to earn a CPA license
• 1-2 years of experience under any CPA

What Are The Requirements Needed To Become A CPA?

To attain the Certified Public Accountant designation, it is necessary to fulfill the criteria set by the regulatory body in the specific U.S. region where you plan to work. The United States comprises 55 Boards of Accountancy, including the 50 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands.

Certification prerequisites differ among these jurisdictions and may undergo periodic updates. Notably, NASBA, in collaboration with the AICPA and Prometric, has expanded the availability of the Uniform CPA Examination to include testing centers in Japan, Brazil, Bahrain, Kuwait, Lebanon, and the United Arab Emirates.

You need to satisfy the following to become a CPA in the U.S.:

1. Education

In most jurisdictions, CPA Candidates must hold a bachelor’s degree or higher at a college or university level at an academic institution recognized by the Board of Accountancy. The American Institute of Certified Public Accountants suggests that acquiring a minimum of 150 semester hours of college education is advisable to attain the essential knowledge base needed for CPA qualification.

Applicants who have attended or graduated from an international college or university may be required to get a professional evaluation of their transcripts. A course-by-course summary of accounting, business-related, and general education topics must be included in the transcript evaluation. The applicant must see that the transcripts are sent in on time for this assessment. A list of foreign credential evaluation services that your board has approved can be found by visiting the website of the Board of Accountancy in your jurisdiction.

2. Pass the CPA Examination

The candidate is required to achieve a minimum score of 75% in all four sections of the Uniform CPA Examination within an 18-month timeframe. To be eligible to take the exam, one must apply and fulfill the educational criteria specified by the jurisdiction in which they intend to practice.

This examination is crafted to evaluate the competencies and expertise essential for entry-level Certified Public Accountants in the field of public accountancy. Successful completion of the exam is obligatory in all 55 jurisdictions. The test encompasses subjects such as Auditing & Attestation, Financial Accounting & Reporting, Regulation, and Business Environment & Concepts.

In addition, some jurisdictions require you to take the AICPA Ethics course (or an equivalent program) and pass the ethics examination.

3. Experience

Most Boards of Accountancy demand that candidates obtain a certain amount of professional work experience in public accounting under the direct supervision of an actively licensed CPA, or have accounting experience that the board deems equivalent.

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4. Meet Residency Requirements

In certain regions, individuals must demonstrate their residency by either living in the state, having a business location as a public accountant, or holding a permanent position with a public accounting firm based in that state.

You can download the general summary of the CPA requirements from the NASBA Licensure and Practice web page. This chart provides guidelines in terms of citizenship, residency, education, and experience necessary for certification or licensure. This chart is also available in the Digest of State Accountancy Laws and State Board Regulation, which can be ordered by contacting the AICPA at 888-777-7077.

5. Obtaining Certification and Licensure

The final step in obtaining CPA certification and licensure within the jurisdiction in which you intend to practice is to submit an application and appropriate fees to the Board of Accountancy. (Certain jurisdictions have a two-step process providing both a certificate to practice and licensure.)

After earning CPA licensure, most states also require that you take specified amounts of professional education courses annually to retain your professional license to practice.

Certifications And Licenses Required To Become A Certified Public Accountant (CPA)

CPAs possess professional licenses that enhance their job prospects and enhance their status. This designation can broaden the spectrum of professional possibilities, elevate earning potential, enhance job stability, and facilitate entry into higher-level positions.

To practice as a CPA, it is essential to acquire a CPA license issued by the state licensing board. This differs from CPA certification, which indicates successful completion of the CPA exam and meeting initial licensing criteria. Licenses are formally issued by state accounting boards, and maintaining them involves meeting additional requirements and accruing professional development hours.

The National Association of State Boards of Accountancy (NASBA) is a valuable resource for accountants aiming to obtain licensure. NASBA offers information and links to the 55 jurisdictional accountancy boards in the United States. For specific details on local licensing requirements, it is recommended to consult the board corresponding to the jurisdiction where you plan to work.

Many CPAs earn additional certificates to bolster their career prospects. Accountants can pursue certificates from professional organizations, such as the Institute of Internal Auditors and the Institute of Management Accountants.

While individuals with the requisite knowledge and skills can engage in accounting roles without a license, there may be restrictions on job opportunities and career progression. Unlicensed accountants commonly specialize in specific areas or work under the guidance of a CPA, managing tasks such as bookkeeping, accounts payable, and accounts receivable.

How Can I Become A CPA In 2024?

Becoming a Certified Public Accountant (CPA) typically involves several steps, and the process may vary slightly depending on the jurisdiction. Here is a general guide on how you can become a CPA in 2024:

Step 1: Earn a Bachelor’s Degree

Earning a bachelor’s degree from an accredited educational institution is the first step to becoming a CPA, and many CPAs start with a bachelor’s degree in accounting. While many CPAs commence their education with a bachelor’s degree in accounting, it’s not obligatory to major in accounting or a directly related field. Pursuing a degree in areas outside of accounting can still equip individuals with valuable skills for the accounting profession. For instance, English majors might find their strong writing and comprehension abilities beneficial in the field of accounting.

Ensure you meet the educational requirements set by your state board of accountancy. Typically, this involves earning a bachelor’s degree in accounting or a related field from an accredited college or university.

Step 2: Complete Additional Coursework

Take the required coursework in accounting and business. Some states have specific course requirements that candidates must fulfill. Make sure to check the specific requirements of the state where you plan to become licensed.

A bachelor’s degree usually includes 120 credits, but you must complete 150 credits of college coursework to become a licensed CPA. Most states require a minimum of 24 of these credits to come from accounting courses and some states, such as California and Texas, may require minimum coursework in business-related subjects.

Step 3: Take the CPA Examination

After satisfying your state’s education requirements, you are automatically eligible to sit for the Uniform CPA Examination®, which is required to become a CPA. This 16-hour exam includes multiple-choice questions, essay questions, and scenario-based questions that require you to apply your knowledge to address specific workplace situations.

The CPA exam tests knowledge of the following areas:

• Auditing and Attestation (AUD)
• Regulation (REG)
• Financial accounting and reporting (FAR)
• Business environment and concepts (BEC) Note that BEC will be phased out beginning in 2024.

Candidates must take and pass all four sections of the CPA Exam to become a licensed CPA. The passing score varies by state

Step 4: Gain Work Experience

Gain the required professional work experience. Many states require candidates to work under the supervision of a licensed CPA for a specific period, often ranging from one to two years.

Step 5: Obtain Licensure

Submit your application for CPA licensure to the state board. This will include transcripts, proof of work experience, and any other required documentation.

CPA licenses are issued on a state level by each state’s board of accountancy, and each of the 55 jurisdictions within the U.S. sets its own specific licensing criteria. NASBA oversees licensing processes in all 55 jurisdictions.

NASBA lists licensing requirements for each U.S. jurisdiction on its website. Familiarize yourself with your state’s specific standards early in the process to ensure you don’t miss any steps.

How Much Does It Cost To Become A CPA?

The cost of the CPA Exam varies based on the licensing state. You can find the breakdown of CPA exam fees by state here. 

What Does A CPA Do?

Like most accountants, CPAs perform a wide range of accounting, auditing, tax, and consulting work for corporations, small businesses, non-profit organizations, governments, and individuals.

Upon achieving CPA status, you may find yourself tasked with preparing financial statements and filing reports with the SEC for your clients. Compliance with SEC regulations necessitates CPA credentials for report preparation and submission.

Furthermore, as a CPA, you have the authority to represent clients before the IRS in resolving their tax issues. Direct representation is limited to professionals such as CPAs, attorneys, enrolled agents, enrolled retirement plan agents, and enrolled actuaries, as mandated by the IRS.

As a certified public accountant, you’ll have the opportunity to collaborate with individuals and businesses across diverse industries, offering advice on financial and tax-related concerns. Specialization options may include areas such as forensic services, taxation, or industry-specific fields like healthcare. Alternatively, depending on your career trajectory, you can focus on providing a broad spectrum of accounting services.

Here are the job duties of a CPA

• Maintaining records and preparing financial documents

• Preparing tax returns for companies, organizations, and individuals

• Consulting with management on financial matters

• Identifying financial discrepancies and areas for improvement within the company’s internal processes, policies, and procedures

• Conducting forensic accounting for audits

• Advising on the financial risk involved in taking on new projects or mergers, retirement planning, and other financial decisions

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What Is The CPA Exam Like?

The CPA exam has 276 multiple-choice questions, 28 task-based simulations, and three writing portions. These are divided into four main sections:15 

• Auditing and Attestation (AUD)
• Financial Accounting and Reporting (FAR)
• Regulation (REG)
• Business Environment and Concepts (BEC)

Half of the total score on the CPA Exam is determined by multiple-choice questions, while the remaining 50% is based on task-based simulations. To pass each section, a minimum score of 75% is required.

Candidates are allotted four hours for each section, resulting in a cumulative exam time of 16 hours. The four sections are taken individually, and candidates have the flexibility to choose the order in which they tackle them. It is mandatory for candidates to successfully pass all four sections within an 18-month timeframe, the commencement of which varies depending on the jurisdiction.

How Long Does It Take To Become A CPA?

It takes about 7 years to become a CPA. This comprises; four years to earn a bachelor’s degree, another year or more to earn the additional credits to meet education requirements for licensure, up to 18 months to complete all parts of the CPA exam, and one or two years of work experience before applying for your license.

After taking the CPA Exam, you’ll need to meet other eligibility requirements for your state, which can include years of experience and an ethics exam.

FAQs On How To Become A CPA

Conclusion

Not all accountants are CPAs. Those who earn the CPA credential distinguish themselves by the show of dedication, knowledge, and skill. CPAs engage in accounting responsibilities, which include generating accurate reports that depict the financial transactions of the companies and individuals they serve.

References

• forbes.com – How To Become A CPA: A Step-By-Step Guide
• coursera.org – What Is a CPA and How Do I Become One?
• accounting.com – How to Become a CPA

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