If you want to be a CPA the entire process can seem a little daunting. Especially figuring out how to register for and clear those CPA exams. If you’re trying to get your head around eligibility criteria, the exam process, and what NASBA, AICPA, Prometric, and the umpteen State Boards of Accounting do, here’s some help!
There’s good reason why the CPA credential is so coveted. And while it can all seem overwhelming, you don’t have to go it alone.
What is the CPA Credential?
Let’s get the basics out of the way first. What is the CPA credential? It is a license that lets you practice as a CPA or Certified Public Accountant in the United States. Issued at a jurisdiction level, it allows you to be a CPA in a particular state(to which you apply), based on your meeting eligibility criteria and clearing the CPA exams.
Becoming a CPA can open up a whole new range of career opportunities for you and is understandably a credential many are keen to notch up next to their names. But it does require a fair bit of rigorous prep and the ability to “stick with the program” even when things get tough. Don’t let that put you off – it is more than worth the effort!
The U.S. Department of Labor’s Bureau of Labor Statistics projects that the demand for accountants/auditors will go up by 10% through 2026, so this is certainly a career option with potential. But here’s the clincher – CPAs actually earn as much as 10 to 15% more than their peers in the accounting field.
Your CPA License: What do AICPA, NASBA, Prometric, and the State Boards do?
Before getting into the process itself, you need to know who you’ll be interacting with during your journey to becoming a CPA.
- The AICPA(American Institute of Certified Public Accountants) which is the world’s largest member association representing the accounting profession – develops and scores the Uniform CPA Exam.
- Your State Board of Accountancy issues your CPA license once you’ve met all criteria and passed all the exams.
- The NASBA(The National Association of State Boards of Accountancy) doesn’t develop the exam content or score it but is a facilitator in the process.
- Prometric is the computerized test center partner for CPA exams. You’ll need to schedule your exam dates with them.
7 Steps in the CPA Qualification Process
Now that you know the “who’s who” of the CPA examination system, here’s the lowdown on how to get a CPA qualification in the U.S.
1: Check If You Make the Cut
Not everyone is eligible to register for/apply to take the CPA exam. In fact, there are some fairly stringent criteria you must meet to even be able to take the tests. These may include:
- A fixed number of semester hours/credits. This is 120 hours in some states and 150 hours in others.
- Citizenship. Some states might want you to be a U.S. citizen, others may not.
Being a least 18 years old - Holding a bachelor or master’s degree from an accredited college/university, with a concentration in accounting. You must be able to provide transcripts to back this up.
- Work experience in the industry – about a year of public accounting work experience is the minimum. Some states may also accept alternate work experience like self-employment/teaching/part-time work experience towards your eligibility. Be warned that there are also states which get into details on the kind of accounting work experience you have, mandating a minimum amount of auditing work experience as well.*
2: Pay the Application Fee to your Board of Accountancy or their agent to take the exams
3: Apply to the State Boards of Accounting for Authorization to Test (ATT). Decide which sections you want to take and pay up the Examination Fee(in addition to the Application Fee). NASBA also facilitates this in some states.
4: Receive Your Notice to Schedule (NTS)
● NASBA will send you your NTS. The validity of this NTS can vary from state to state, so do check until when it is valid and ensure you complete the process in this window.
● Don’t forget! You need to carry the NTS with you to the Prometric test center on the day.
##RC Tip Take 2 different set of documents to prove your identity. You may not need to show the 2nd proof of identity but it helps to have it handy.
5: Schedule your exam dates via the Prometric website
- You will need to complete all sections of the CPA exam within 18 months of taking the first section. So the clock’s ticking after you do one.
- Don’t rush into trying to do all sections together in one attempt. Take a couple of sections. Give yourself time to prepare well for the next sections and then register for those.
6: Take the test! Now that you’ve taken care of the paperwork, you need to take the actual tests and wait for the results. This is when all your hard work pays off!
7: Receive score reports and get your license. The State board of accountancy issues your CPA license once you’ve met all criteria and passed all the exams. An AICPA Ethics Exam may be needed in some states. This is an at home online test to be taken after reading the Ethics booklet.
You Can Take the Test in A Different State!
Here’s something you may not know. The requirements to become a CPA while broadly the same, can vary from state to state. For instance, criteria like what qualifies as a “concentration in accounting” can vary. The Kentucky Board of Accountancy says this means you should have at least 27 semester hours in accounting courses. In Michigan, the board requires you to have done 12 semester hours if you have a Master’s degree or 30 hours if you have a Bachelor’s degree.
So while you may not be eligible to appear for the exam in one state, you could well meet the criteria and then some, in other states. And you don’t need to take the exam in the same state as the one you’re registered in.
##RC Tip If you’d like to get this step done quickly without the worry of “will I/won’t I”. The NASBA can actually help you(for a fee) identify the top 3 states where you are eligible to register for the CPA exam.
They’ll even provide to the state that you qualify and meet the requirements in the jurisdiction. You can also use NASBA’s Accountancy Licensing Library(ALL) Research Tool to identify states that meet your criteria and match your background. This costs around $10 for a day’s access with unlimited searches.
Start Preparing Right Away!
