Updates to Cpa Education Requirements

And with this, the 150-hour requirement is effectively removed. AICPA and NASBA have finalized language to amend the UAA by incorporating a pathway to CPA at 120-hours and support for automatic mobility across state lines. Candidates may still get licensed with 150 hours, but it is no longer the only means to become a CPA. Kudos to all who worked to get this necessary change across the finish line: AICPA and NASBA staff, state societies, regional firms, academics, commenters, and those supporting the next generation of CPAs. It took a village, but it worked. "The approved amendments to the Uniform Accountancy Act (UAA) add the option to earn CPA licensure with a bachelor’s degree, two years of professional experience, and passage of the CPA Exam." In addition mobility is improved by a "shift from state-based mobility to an individual-based practice privilege that maintains a CPA’s ability to practice across state lines with one license. And the addition of safe-harbor language that allows CPAs who were licensed under differing education, experience, and exam requirements as of Dec. 31, 2024, to continue to have practice privileges under mobility." #cpa https://lnkd.in/edFDJPmy

The Growing Accountant Shortage Triggers Calls for Reduced CPA Qualifications and Pay Increases. It appears that the American Institute of Certified Public Accountants (AICPA) is finally addressing widespread industry concerns. Stringent educational requirements and stagnant salaries have been discouraging potential accountants from entering and staying in the profession. In response, a significant proposal aimed at resolving these issues was released on Tuesday. This proposal emerged from the efforts of a task force, convened last year by a leading accounting industry association to combat the shortage of Certified Public Accountants (CPAs). The task force's draft recommendations propose that aspiring CPAs should be allowed to earn equivalent college credits through on-the-job experience, which could be facilitated by academic institutions or qualified employers. Moreover, the recommendations stress the need for audit firms to raise entry-level salaries and improve work-life balance in order to attract and retain talent. The proposed changes include eliminating the 150 credit-hour requirement, replacing the final 30 credit hours with practical, hands-on learning at accounting firms, and increasing starting salaries. The number of students sitting for the CPA exams has been declining each year over the past decade. The uptick in 2023 is misleading, as it resulted from changes to the exam format, prompting a rush of candidates to take it before the changes took effect. However, if you consider the overall trend, it is quite alarming. Addressing these issues is crucial to reversing the severe shortage of accountants we are currently facing. These potential changes should be great motivator to all aspiring CPA’s and for the industry as a whole. #CPA #Requirement #Change #Accounting #Shortage #AICPA

Georgia just passed alternative pathways legislation for CPAs. The governor still needs to sign it, but this makes seven states now that have moved away from the traditional 150 credit hour requirement. And it's happening fast. What does this mean if you're in Georgia? You don't need those 150 hours of education to become a CPA anymore. Georgia going with the 120 credit hour requirement instead, just like Utah and Minnesota. The requirements look pretty similar across all these states: Bachelor's degree plus two years of professional experience OR just one year of experience if you've got a master's I find it interesting how similar the language is in all these states' requirements. This tells me we'll probably hear a story soon about the state CPA societies working together behind the scenes for months. And here's what's really telling - they waited for Barry Melancon to leave before making their move. Barry was the former head of the AICPA for decades and fought against any changes to the traditional pathway. He must have had the biggest hammer and iron fist ruling of anybody. People must have been terrified of him because the second he's gone, these changes are passing everywhere. It's amazing to watch. This is the problem with that kind of leadership. If you rule top down like that, as soon as you're gone, your legacy gets undone. For accounting students, this is huge. The pathway to becoming a CPA is getting more flexible, potentially saving you time and thousands in tuition while still maintaining professional standards through experience requirements. Keep an eye on your state's accounting board - with this momentum, we could see more states joining the movement soon. Want the full scoop? Check out Episode 430 of The Accounting Podcast where Blake and I dive deeper into this topic and discuss Trump's tariff calculations and AI-generated receipts.

Illinois has approved House Bill 2459, creating two new pathways to CPA licensure while maintaining the traditional 150-credit hour route: Bachelor's degree with accounting concentration + 2 years work experience OR Master's degree with accounting concentration + 1 year work experience OR Traditional pathway preserved: 150 credit hours + 1 year experience All candidates must still pass the CPA exam regardless of pathway chosen. The Illinois CPA Society, one of the largest state CPA associations, spearheaded this initiative to: - Eliminate barriers to entering the accounting profession - Reduce time and costs for becoming a CPA - Address the profession's ongoing talent shortage - Maintain Illinois CPAs' competitive position nationally Illinois joins more than a dozen states that have modified CPA licensure requirements. Minnesota recently passed similar legislation on May 20, indicating this is part of a broader national movement to expand access to the CPA profession. The bill maintains practice mobility provisions, allowing out-of-state CPAs to serve Illinois clients without obtaining an Illinois license.