Do you have a mind for math and want to pursue a fulfilling, lucrative career? Then you might want to become a CPA or certified public accountant. This guide will break down what a certified public accountant is, how to become a CPA, and the best online accounting programs that fulfill education requirements.
What is a CPA?
A certified public accountant is an accounting professional licensed by their state’s Board of Accountancy. The license indicates that you are knowledgeable, experienced, and ethically trustworthy, allowing you to qualify for many sensitive positions in business, government, and other sectors.
These professionals may perform a wide variety of duties ranging from auditing to financial advising to tax assistance and more. The difference between a CPA and an accountant without a CPA certification is important; licensed accountants earn more money and qualify for better positions.
CPA vs. Accountant
Accountants handle all manner of financial tasks, like auditing, tax preparation, etc. You can become an accountant by earning an accounting degree and applying to open positions. It’s less difficult than becoming a CPA.
A CPA does many of the same tasks as an accountant but is trustworthy/skilled enough to handle more sensitive financial materials. Basically, a certified public accountant is a more experienced accountant with higher salary potential.
While there are some differences, CPAs and accountants know much of the same base knowledge. Many accountants work as basic accountants for a few years before completing their CPA certification as CPA experience and work requirements are higher.
What Can a CPA Do That an Accountant Can’t?
CPAs have several additional responsibilities that accountants do not. For instance, a CPA may represent audited companies or taxpayers. CPAs can also defend tax returns if a state tax auditor or the IRS has questions or concerns.
Certified Management Accountant (CMA) Pathway
A CMA or certified management accountant is a more specialized individual who helps businesses identify and enact growth strategies based on comprehensive, in-depth financial analyses. Thus, they usually take alternative, business-focused courses based on topics such as business strategy, management practices, etc.
If you want to become a CMA, you must hold active IMA membership, complete both parts of the dedicated CMA exam, and hold a bachelor’s degree from an accredited university. An accounting degree is acceptable if you want to become a CMA in the future.
How to Become a CPA
Earning this license takes some time, but the path to becoming certified is relatively straightforward. Below are the steps to becoming a CPA.
Step 1 – Acquire 150 Semester Hours of CPA Education
First, you must acquire a bachelor's degree in accounting, finance, or a related topic. Most bachelor degree programs provide 120 credit hours. After, you will need to acquire additional CPA education to reach the 150 credit hour requirement. Depending on how many credit hours your bachelor’s program provided, the additional hours can be completed by taking a few graduate-level courses or earning a master's in accounting.
Step 2 – Meet Your State’s Experience Requirements for CPA Licensure
Next, you must check the CPA license requirements in your state and fulfill those experience requirements. Experience usually amounts to 1 to 2 years of general or public accounting involvement and is typically completed after fulfilling education requirements.
Step 3 – Pass the CPA Exam(s)
Then you must pass the CPA Exam, including an ethics exam depending on your state of residence.
Step 4 – Finalize Certification
Afterward, you must finish your CPA license application before applying for certified public accountant jobs.
CPA Education Requirements
To become a CPA, you must complete a certain amount of formal education. Specifically, you must accumulate 150 academic semester hours from an accredited university. In the majority of cases, this involves earning a bachelor’s degree and completing several graduate-level courses. Let’s take a closer look at the certified public accountant education qualifications.
What Degree Do You Need to Be a CPA?
There is not one specific degree or education pathway to become a CPA. The most common route to meet the 150 semester hour requirement is to earn a bachelor’s degree in accounting plus one year of graduate level courses.
A bachelor’s degree program will typically provide 120 credit hours.
GetEducated's Picks
- Western Governors University Bachelor of Science in Business Administration / Accounting
- King University Bachelor of Science in Accounting
Then, one year of study at the graduate level will accumulate an additional 30 credits.
GetEducated's Picks
- Western Governors University Master of Science in Accounting / Auditing
- University of Scranton Master of Accountancy
Do You Need to Major in Accounting to be a CPA?
The short answer is sort-of. While you can become a certified public accountant with a non-accounting bachelor’s degree, this typically requires you to complete a graduate-level master’s degree in accounting to earn enough credit hours to meet licensing requirements.
However, your bachelor’s degree does need to be in a field related to accounting or you won’t have enough credit hours to fulfill CPA qualifications with a master’s level education alone.
Because of this, accounting degrees are the most direct route to fulfill CPA education requirements. These formal degrees certify your knowledge and expertise in the accounting field. Accounting degrees are available at the associate up to the doctoral level. Admission requirements typically include a high school diploma/GED and good grades in previous math courses. Accounting degrees typically include a good balance of general education, business, and accounting-specific courses.
Required Accreditation for CPA Licensing
When looking for an appropriate degree program to complete, you must make sure the program comes from an accredited university or college institution. The gold standard is regional accreditation, which organizations like SACSCOC or MSWHE award, and is preferred over national accreditation.
In additional to regional accreditation, you should specifically look for degree programs that have been awarded AACSB accreditation, which is from the Association to Advance Collegiate Schools of Business. This accrediting body accredits business schools around the country. It ensures that business programs are rigorous and modern enough to prepare students for their industries of choice.
Choose a program accredited by the AACSB to maximize your chances of employment after graduation. Some states or jurisdictions may require a degree from a school accredited by the AACSB to qualify for state licensure. View which online accounting degrees hold AACSB accreditation in GetEducated’s bachelor, master, and MBA cost rankings.
Accounting Internships
Some of the best online accounting degrees offer accounting internships, allowing you to build up your accounting experience while completing your degree. In some cases, you may acquire a CPA position shortly after graduation if you take the right internship opportunity.
AICPA Scholarships
The American Institute of Certified Public Accountants, also called the AICPA, offers various scholarships and other resources for up-and-coming professionals. For example, the AWSCPA Scholarship Award is available to many applicants and provides $5000 per recipient for one year. Check out AICPA’s scholarship resources if you need financial assistance paying for your education.
Online Accounting Degrees
Online accounting degrees are available at full-time or part-time schedules/cadences, and most require you to complete your work asynchronously. You can fulfill your schoolwork obligations on a schedule that works for you. Let’s look at some of the best CPA degrees you can earn online.
Online Associate Degree in Accounting
Associate-level degrees in accounting provide a base and foundational overview of relevant knowledge in this field. Associate degrees in accounting are not enough for you to qualify for licensure, as they don’t include enough semester hours (remember, you need 150). Furthermore, most associate degrees in accounting include a significant portion of general education classes. Nevertheless, these degrees can be helpful if you plan on completing a bachelor’s degree in accounting in the future.
Albany Technical College – Associate of Applied Science in Accounting Technology
Albany Technical College’s AAS In Accounting Technology is an excellent choice for future certified public accountants. It includes 64 credits and classes covering many standard and basic accounting topics, including a few courses on the role of technology in modern accounting practices. The program is also quite accessible, with three entrance dates throughout the school year. SACSCOC accredits the program.
Coastline Community College – Associate of Science in Accounting
Coastline Community College’s AS in Accounting is available in three options: one for students pursuing an associate degree, another for students transferring to a university in the CSU system, and a third for students planning to transfer to another university. Regardless, all students will complete a wide range of accounting and global and multicultural studies classes. Students can further select from bookkeeping, general accounting, or taxation concentrations. ACCJC accredits this program.
Online Bachelor’s Degrees in Accounting & Finance
A bachelor’s degree in accounting is the primary degree for prospective CPAs. These programs provide 120 credit hours which is the bulk of what you need to qualify for licensure. Furthermore, some of the best bachelor’s degrees in accounting and finance allow you to specialize or concentrate your degree in one of several subsidiary fields, like business accounting, federal finance, etc.
Fayetteville State University – Bachelor of Science in Accounting
Fayetteville State University’s BS in Accounting is a comprehensive bachelor’s program that includes courses on accounting, finance, statistics, and data processing. The online version of this program specifically teaches students how to use remote work and online tools to complete accounting tasks. It is ideal for future CPAs who may take work throughout the country and online. SACSCOC accredits the program.
Eastern New Mexico University – Bachelor of Business Administration in Accounting
ENMU’s degree prepares students to join the accounting field as professionals. Many of the courses in this program specifically help students obtain professional certified public accountant certification. Furthermore, this is one of the most financially affordable schools to get an online accounting degree; the College of Business offers 29 scholarships. The HLC accredits this program.
Online Master’s Degrees in Accounting
Master’s degrees in accounting are graduate-level degrees that include 30-60 semester hours. Combined with a bachelor’s, this is enough for you to qualify for licensure. Options include earning a master’s of accounting (MAcc), master’s of science in taxation (MST), or a master’s of business administration with a concentration in accounting.
It is not strictly necessary to earn a master’s degree in accounting to become a CPA. Still, they are ideal if you wish to specialize in your career. They maximize your chances of scoring highly on the CPA exam and enhance your salary prospects.
Emporia State University – Master of Accountancy
Emporia State University’s Master of Accountancy program is 100% online and is very flexible. Combined with a relevant bachelor’s, it meets the 150-hour requirement for the CPA exam. Still, students can complete it in as few as 12 months, making it ideal for future professionals who want to acquire their CPA licensure quickly. This HLC-accredited program is 30 credit hours in total. It also doesn’t require any work experience.
Amberton University – Master of Business Administration/Accounting
Amberton University’s MBA is available with a concentration in accounting. The degree prepares students for management-level accounting positions, including CPA jobs. Students can take this program 100% online or in a hybrid format. It also includes all the coursework needed to sit for the CPA exam in Texas, making it ideal for future CPAs in this state specifically. It is 36 semester hours in total. SACSCOC accredits the program.
CPA Experience Requirements
You must acquire a certain amount of professional accounting experience to become a certified public accountant. However, your CPA qualifications for experience will vary depending on the state where you plan to practice.
CPA Requirements by State
CPA requirements for the amount and type of experience, exams, and more vary heavily from state to state. For example, some states do not require you to pass an ethics exam (although most do). Some states also dictate the type of experience required for licensing. View resources and contact information for your state’s official board to find out what requirements you’ll need to meet.
One-Tier vs Two-Tier CPA States
A ‘one-tier’ state uses a CPA licensure system in which you can pass the CPA exam and meet your experience requirements to get your license at the same time. In 'two-tier' states, you will be issued a CPA certificate once you pass the exam. You will still have to fulfill experience requirements to earn your license and practice as a CPA. As of January 2023, there are seven two-tier states: Alabama, Connecticut, Hawaii, Illinois, Kansas, Nebraska, and Oklahoma.
Public vs. Private Accounting Experience
Public accounting experiences involve working in a public capacity for the state or federal government, often while performing audits or similar work. Nonpublic accounting experience means you work for a company and perform in-house private accounting work. Both types of experience can work toward your licensure experience requirement, though some states and jurisdictions may have specific experience hour requirements for one or the other category.
CPA Exam
The CPA exam is a comprehensive evaluation that tests your accounting knowledge. You must pass the uniform exam, in addition to an ethics exam in some states, to become a certified public accountant.
The uniform exam contains four primary parts or core sections. These include:
- Auditing and Attestation (AUD)
- Business Environment and Concepts (BEC)
- Financial Accounting and Reporting (FAR)
- Regulation (REG)
The majority of states also require licensed certified public accountants to take the AICPA Ethics Exam. The ethics exam is an open-book test that examines your knowledge of accounting ethics concepts. Fortunately, you can find sample tests for the CPA exam and ethics exam on the AICPA website.
CPA Exam Requirements
In order to sit for the CPA exam, you must have a bachelor’s degree and at least 150 credit hours of coursework. Then you must schedule enough time to sit for the exam, which takes 16 hours (not all at once). Check your state’s exam schedule to determine when it is best for you to take it.
CPA Exam Pass Rate
Th CPA exam is known for its rigor and difficulty. In order to pass, you must score a minimum of 75 in each of the four sections. Exam scoring is somewhat complex and the score does not represent a percentage correct. In 2021, the pass rate for the BEC and REG sections hovered around 60%. The pass rate for AUD and FAR was 44-48%.
2024 CPA Evolution
In 2024, the CPA exam may undergo a change to the core-plus-discipline model. The change will keep the test as a four-section, 16-hour evaluation. However, it will also include questions about technology infused throughout all three of the primary core sections of the test. To pass, future candidates must pass all three core sections of the test in addition to one discipline on the CPA exam. Candidates will be allowed to choose a single discipline but cannot sit for another. Keep this in mind if the CPA Evolution will be in effect by the time you take your CPA exam.
How To Get a CPA License
CPA licensure allows you to work as a certified public accountant. It is illegal to call yourself a certified public accountant and work as a certified public accountant without a CPA license. Earning licensure is a significant career milestone for accounting professionals. The National Association of State Boards of Accountancy (NASBA) serves and oversees all 56 State boards of accountancy licensing. This organization regulates the accountancy profession throughout the US.
CPA License Requirements
Aside from passing the CPA Exam, which has its own requirements, CPA license applicants must pay a $130 application fee and a $300 licensing fee. Furthermore, every CPA certificate expires on November 30 of each odd-numbered year, such as 2021, 2023, etc.
Licensure vs. CPA Certificate
A CPA certificate is not the same as licensure. A CPA certificate means that you have met the requirements to take the CPA exam and passed in a two-tier state. However, you only get CPA licensure when you pass all requirements from your state’s Board of Accountancy. Furthermore, a CPA license is not the same as an accounting certification, which does not have the same educational or experience requirements.
Continuing Professional Education (CPE)
When your license needs renewal, you must complete continuing professional education credits. These amount to a handful of online or in-person classes that take a few hours each to complete. The AICPA is one of the best places to get CPE training for CPAs. However, other major accountancy bodies and organizations, such as Becker and Surgent, also offer online CPE classes.
Becoming a CPA Examples
Let’s take a look at some example pathways to becoming a CPA based on two individual states: California and Texas.
California
To become a CPA in California, you’ll need to complete 150 semester units of professional accounting education. You also need a bachelor’s degree or higher from an accredited university or college recognized by the California Board of Accountancy. California also requires certified public accountants to have ten semester units in ethics study.
After graduation, applicants must have 12 months of general accounting experience and pass a CBA-accepted ethics examination within two years of submitting their CPA license application. Applicants must further provide California with their fingerprints for a criminal background check. Fees include a $100 initial application fee and a $50 reapplication fee.
Texas
To become a CPA in Texas, applicants must pass a background check and meet minimum educational requirements. These include 150 semester hours of accounting education, including a three semester hour Board-approved ethics course. Students must also complete 24 semester hours of upper-level related business courses.
Afterward, applicants must complete two years of work experience under CPA supervision. Candidates could also complete at least one year of work experience acceptable to the board, such as experience providing a service or advice involving accounting services. All candidates have to complete a four-credit ethics course as well.
CPA Salary & Job Outlook
Many individuals get into the accounting industry because of its career prospects. After becoming a CPA, these professional accountants can work for businesses in advisory or management capacities. Also, they can head up accounting firms or companies that provide auditing or accounting services for other businesses.
In addition, many CPAs specialize their careers in one or more fields, such as valuation, taxes, forensics, personal financial planning, etc. Specialization enables professional accountants to work in the fields of accounting that interest them the most.
CPA Salary
According to the Bureau of Labor Statistics, accountants and auditors earn approximately $77,250 annually. However, starting salary for a CPA is typically around $60,000. Keep in mind that many accountants manage to earn significantly more than this, with the highest 10% earning more than $128,970 per year.
FAQs
How long does it take to become a CPA?
At minimum, you should expect it to take seven years to become a CPA. This is longer than the time it takes to become an accountant which is roughly four years, the length of time needed to complete a bachelor’s degree in accounting.
How to get 150 credit hours for CPA
There are a number of different education scenarios to get 150 credit hours for CPA licensure:
- Complete 30 extra credit hours during your undergraduate bachelor’s education by taking a heavier course-load (18 credits per semester instead of 15), taking summer courses, or completing a relevant double major
- Earn a bachelor’s degree in accounting (120 credit hours) plus 30 credits of graduate level accounting coursework from a master’s in accounting or an MBA program with a concentration in accounting
- Graduate from a five-year accounting program designed to meet CPA requirements
When should you take the CPA exam?
The CPA exam is typically taken after fulfilling your state’s educational and experience requirements.
How much can a CPA make?
The average CPA salary is between $60,000 and $100,000 per year. A starting salary for a certified public accountant is typically $60,000 or more. However, the average CPA salary is usually between $70,000 and $100,000 as they gain experience.
What percentage of accountants are CPAs?
Approximately 50% of accountants are certified public accountants in the US.
Find An Accounting Degree Online
You can become a CPA in a matter of years with the right drive and the right online program. GetEducated.com has the resources you need to find the perfect online accounting degree for your budget, schedule limits, and other factors. Check out our breakdowns of the best online schools today!