Becoming a CPA is one of the first steps to enjoying a lucrative and fulfilling career in accounting or finance. Apart from the obvious career prospects, it also ensures amazing job security. However, there are several CPA experience requirements and qualification criteria that must be met to apply for the CPA exam and obtain a license to practice.
While the 150-hour education requirement is universal, CPA work experience requirements can vary from state to state, leading to confusion. The accounting boards of each state specify the type of work experience and employment required. This includes and the number of years andn type of experience that much be earned.
Typically, you must work under the guidance and directions of a licensed CPA who will certify your work. Most boards require at least one to two years of work experience in public accounting or an accounting-based role. Part-time experience is generally accepted, but the number of years of experience can increase significantly.
To clear up the CPA work experience requirements once and for all, we’ve compiled this guide to help you understand exactly what’s required to earn your CPA license.
Contents
CPA Work Experience Requirements
Before diving into the experience requirements for CPA, an understanding of how states/jurisdictions is necessary.
Some states have a one-tier system where candidates are required to meet the experience requirements to be awarded both the certificate and the license.
Others have a two-tier system that allows you to pass the CPA exam and obtain the certificate. You can then fulfill the experience requirements and be awarded the license later. You should contact the state where you want to practice to know the rules in force.
What are the common eligibility criteria to obtain a CPA license? There are three main ones.
- Education: You must hold a bachelor’s degree and 150 total credit hours of general education. Some states allow you to sit for the CPA exam with 120 credit hours. However, the remaining 30 hours must be earned before the license is awarded.
- Exam: All four sections of the CPA exam must be completed within the 18-month test window.
- Experience: This point will be discussed in detail but generally one to two years of experience is required in the accounting field.
Apart from these three requirements, some states also require passing an Ethics exam to be awarded the CPA license. The Ethics exam tests your knowledge of how to handle ethical issues often faced by CPAs in their professional life.
Work Experience Options
The work experience factor will now be examined in some detail as there is some ambiguity here. Each state accountancy board stipulates the nature of the work and the number of years of experience needed before being eligible for the CPA License.
In most cases, you have to work under an actively licensed CPA who will certify your work. Remember, a retired CPA or one with an inactive license is not authorized to do so.
Even though work experience rules vary between states, given here are the most common ones.
- Area of work: While some states insist that you work in public accounting, many do not. You could fulfill your experience requirements for CPA by working in taxation or non-public accounting jobs. There are states also that count your experience in teaching or doing academic work as work experience for the CPA licensure.
- Hours of work: Verify whether it must be a full-time job. You might be allowed to work part-time or even have self-employed experience in the accounting field.
- Certifier of work: In most states, you have to work under the supervision of a licensed CPA but some allow non-CPA supervisors too. There are also states where a CPA can verify your work without directly being your supervisor.
- Years of experience: While the norm is one year of experience to get the CPA license, it might stretch to two years if it is in the non-public accounting field.
Check the work experience requirements of your state as early as possible to avoid unpleasant surprises at the last moment.
Work Experience Requirements by State
You can’t exactly earn a CPA License without work experience. However, there are some states where the requirements are slacker than the others.
For instance, most states now allow general accounting work in private industries and even academic teaching positions. Therefore, you can head for a non-public accounting career by choosing a matching state board of accountancy.
However, the catch here is that if you have never worked in public accounting and do not plan to do so either in the future, you can choose a state board that allows non-public accounting work experience but have to put in an extra year of work.
Check out the difference in the rules of the state board of North Carolina in this regard. Both for teaching accounting at a college or university or work experience in the field of accounting without the supervision of a licensed CPA, the work experience requirement is 4 years. This drops to just a year if you have accounting experience under the supervision of a CPA.
Some state boards only require one year of experience, regardless of whether you are in academics, general accounting, or public accounting. So, if you want to work in non-public accounting, choose one of these states.
One important provision is working under the supervision of a licensed CPA. This can pose a challenge if you work in the private sector where CPAs are not so common. Or you might be working outside the USA and do not have a supervisor who is licensed in the USA. Here too, you will find state boards that allow for this eventuality provided you can prove that you have sufficient accounting skills that are relevant to the job. Generally, self-employment does not meet the work experience norms.
Which states have the most lenient experience requirements?
Among the states with the easiest CPA experience requirements are Illinois, Ohio, Virginia, and Wisconsin. You can apply to any of these state boards if you do not plan to work under a CPA as they recognize work experience supervised by a non-CPA. If the experience is in the relevant field, you can get a license from one of these states.
As of now, Washington, Arkansas, Montana, and Indiana allow verification of your work by someone other than your supervisor or boss. This means exceptional flexibility in your work experience requirement for a CPA License.
Finally, which states have no experience requirements for CPA? They are Massachusetts and Guam. But the licenses offered by them have restrictions on how you can hold yourself out as a CPA. Massachusetts provides a non-reporting license while Guam offers an inactive license, both not much help for your CPA careers.
Requirements for International Candidates
Most international candidates are not tied to a particular U.S. state to earn their CPA license. They are free to choose the state that has the most flexible exam and work experience requirements.
Let’s take a look at the states that provide the most flexibility in work experience requirements for international students:
- Virginia: The state allows 1 year of work experience in a relevant field and does not require the supervisor and verifier of your experience to be a CPA. This means that so long as you work in accounting, you get a license. Social security number (SSN) is required though which makes many international students ineligible.
- Guam: You can get an “inactive” license without work experience, SSN, or fulfilling the 150 credit hours provided you are an accounting major with a 4-year Bachelor’s degree and do not practice in Guam.
- Washington: Your work experience can be verified by a CPA who is not your supervisor. Hence, your non-US experience can be verified by someone who is a US CPA, a friend, a mentor, or even your business partner. This makes work certification quite easy for you.
- California: The state board might recognize work experience verified by a non-US CPA if you register with the state board but not if the experience is gained outside the state. You do not need SSN to sit for the exam but will require one to get your license.
- Illinois: There is great flexibility in the working experience required as you do not need a CPA to verify it. Your supervisor may or may not be a CPA.
These are some states that ease the procedures for international candidates to get a CPA license.
Which Jobs Fulfill the CPA Experience Requirements?
As seen throughout this post, most states require work experience to be directly supervised by a licensed CPA, or the work experience to be signed by a licensed CPA. The following types of work experience are generally accepted by the state boards.
- Government employment: Experience from employment in government, academia, industry, or public accounting positions. Outside these jobs, work experience will count for half of that of public accounting.
- Auditing and accounting: Areas of work should include compilation, attestation, financial or management advisory, and tax or consulting skills.
- Multiple employers: Most boards accept experience that has been acquired from multiple jobs provided each of them is verified and certified by a CPA from that business.
Typically, work experience can be acquired before sitting for the CPA exam and even during internships or college. However, work experience must be accumulated within a particular time frame and hence there is always a possibility of college experience expiring.
Summing up
Work experience is essential to getting a CPA license. You can get it certified by CPAs who have been directly involved in your work or those that have not been your supervisor. Separate states have varying requirements and hence, go through the rules of the board in the state you want to practice before registering for the CPA program.
