How to Become a CPA: 10 Easy Steps

Becoming a Certified Public Accountant (CPA) is a rewarding and prestigious career choice for those who are passionate about accounting. As a CPA, you can unlock diverse career opportunities in various industries, from public accounting to forensic accounting, and enjoy higher earning potential. If you’re wondering how to become a CPA, this step-by-step guide will outline the essential stages, from education requirements to passing the CPA exam. Follow these 10 easy steps to embark on your path toward becoming a licensed CPA.

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Here’s How to Become a CPA:

1. Earn a Bachelor’s Degree in Accounting or Business

The journey to becoming a CPA starts with a solid educational foundation. Most states require candidates to hold a bachelor’s degree in accounting or a related field. This degree typically includes courses in accounting, business, and financial accounting. You may also need to take accounting and business courses that cover topics like tax returns, management advisory, and information systems.

Many candidates choose to attend an accredited college or university to ensure their education meets the education requirements set by their state’s board of accountancy.

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2. Complete Additional Accounting Courses if Necessary

Depending on your state’s requirements, you may need to complete additional coursework beyond a bachelor’s degree. Some states require a master’s degree or a specific number of credit hours in accounting subjects and business courses. For instance, some states require a total of 150 credit hours for CPA licensure, which may involve taking extra accounting study courses or courses in business-related subjects.

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3. Meet State Educational Requirements

Each state has its own specific educational requirements for CPA candidates. You must meet the academic standards set by your state’s board to qualify for the CPA exam. In addition to the bachelor’s degree, most states require a certain number of credits in accounting and business courses. For example, the California Department of Consumer Affairs and other state agencies may have unique standards for students hoping to become a CPA.

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CPA Exam Requirements By State

To access the detailed CPA Exam requirements for your state, click the appropriate link below:

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4. Apply to Take the Uniform CPA Exam

The Uniform CPA Exam is the next hurdle to cross. After meeting the education requirements, you can officially apply to take the CPA exam through your state’s board. The exam tests knowledge across various areas, including auditing, financial accounting, business law, and taxation. The new exam structure, implemented in 2024, consists of three core sections and three discipline sections from which candidates select one.

Core Sections (Mandatory for All Candidates)

1. Auditing and Attestation (AUD):
   • Tests understanding of auditing principles, internal controls, risk assessment, and compliance with ethical standards.
2. Financial Accounting and Reporting (FAR):
   • Focuses on preparing and analyzing financial statements, revenue recognition, lease accounting, and other essential skills.
3. Taxation and Regulation (REG):
   • Combines elements of taxation, business, and regulatory ethics, focusing on compliance and advisory services.

Discipline Sections (Candidates Choose One)

1. Business Analysis and Reporting (BAR):
   • Ideal for candidates aiming for careers in financial planning, reporting, or consulting. Topics include data analytics, complex financial reporting issues, and critical decision-making.
2. Information Systems and Controls (ISC):
   • Designed for those interested in IT auditing or cybersecurity. Focuses on system controls, technology implementation, and data governance.
3. Tax Compliance and Planning (TCP):
   • Targets candidates focusing on taxation, estate planning, and advisory services, covering advanced tax strategies and compliance.

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5. Pass the CPA Exam

To become a CPA, you must pass the CPA exam. The exam is known for its rigor, so it’s essential to prepare thoroughly. Many CPA candidates use accounting study materials, review courses, and practice tests to improve their chances of success. The CPA exam requires a deep understanding of accounting, business, and ethics. It typically takes several months of study and preparation, but passing this exam is crucial to obtaining your CPA license.

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6. Complete Required Work Experience

In addition to passing the CPA exam, most states require candidates to gain a certain amount of general accounting experience. This often means working for a specific number of hours under the supervision of a licensed CPA. The required experience may range from 1-2 years, and it’s essential to ensure that the work aligns with state standards. Accounting professionals working in public accounting or in roles such as management advisory or forensic accounting may meet the experience requirements.

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7. Pass the Ethics Exam

Many states require CPA candidates to pass an ethics exam as part of the licensure process. This exam tests your knowledge of the ethical standards and responsibilities associated with the profession. The ethics exam is often taken after passing the CPA exam and completing the work experience requirements.

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8. Submit Application for CPA Licensure

Once you’ve passed the CPA exam, completed the work experience requirements, and passed the ethics exam, you can submit your application for CPA licensure. This involves providing proof of your education, exam results, and work experience to your state’s board. The process may take several weeks to months, depending on the state’s processing times.

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9. Maintain Your CPA License with CPE Credits

Once you become a licensed CPA, you must maintain your licensure by fulfilling the CPE (continuing professional education) credits requirement. Most states require CPAs to complete a certain number of CPE credits every year or every few years. These credits can be earned by taking courses in accountancy, business courses, or other relevant areas like forensic accounting or financial accounting.

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10. Explore Career Opportunities as a CPA

After obtaining your CPA license, you can explore a wide range of career options. As a licensed CPA, you can work in various sectors, such as public accountancy, government agencies, or private corporations. CPAs often specialize in areas like tax returns, audit, or management advisory. With a CPA designation, you have access to some of the most lucrative and fulfilling roles in the accounting field.

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Have more questions about how to become a CPA? Ask Us.

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Next Step: Read ’88 Things You Need To Know For The CPA Exam’

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