6 Steps to Becoming a Certified Public Accountant (CPA)

Photo Courtesy of Andrey Popov

Thinking about becoming a Certified Public Accountant (CPA)? Awesome choice! It’s a fantastic career path with loads of opportunities. Let's break down the steps to becoming a CPA in a fun and engaging way!

Step 1: Know Your State’s Requirements

Each state has its own set of rules for CPA candidates. Some states have specific coursework, residency requirements, or experience prerequisites. So the first step it to ensure you understand what your state requires. Check out the detailed overview of each state’s requirements here.

Step 2: Get a Degree in Accounting or a Related Field

Once you know your state‘s specific requirements, you’ll need a degree in accounting or something similar. Choose a program with a great reputation and solid curriculum. This education will give you the foundation you need for a successful accounting career.

Step 3: Rack Up the Extra Credit Hours

To sit for the CPA exam, you'll need 150 credit hours of education. This is a bit more than a typical bachelor’s degree. Many candidates go for additional coursework or a master’s degree in accounting to meet this requirement. It’s extra effort, but worth it for the added expertise.

Step 4: Pass the CPA Exam

Starting in 2024, the CPA exam is split into three core sections and one discipline section. The core sections are Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Regulation (REG). Then, you choose one discipline section: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP). Prepare well, take your time, and tackle each section one at a time. You’ve got this!

Step 5: Get Some Hands-On Experience

Most states require you to gain practical experience under a licensed CPA. This typically means 1-2 years of real-world accounting work. This experience is crucial because it lets you apply what you’ve learned and find out what areas of accounting you enjoy most.

Step 6: Apply for Your CPA License

After passing the CPA exam and getting the required experience, it’s time to apply for your CPA license. Submit your application to your state board of accountancy. Once approved, you’re officially a CPA! Woohoo!

Bonus Step: Keep Learning

Getting your CPA license is a big deal, but the learning doesn’t stop there. CPAs need to complete Continuing Professional Education (CPE) courses to stay up-to-date with industry standards and regulations. This ongoing education ensures you remain knowledgeable and competitive in your field.

So there you have it! Becoming a CPA involves several key steps, each designed to build your skills and credibility in accounting. With dedication, hard work, and a commitment to lifelong learning, you can earn this prestigious designation and enjoy a rewarding career as a Certified Public Accountant. Go for it!

For those who are currently on the CPA Journey, what step are you on right now?