How to Become a CPA: The Complete Roadmap From Student to Licensed Professional
The CPA licence is the gold standard accounting credential in the United States — and earning it opens doors to public accounting, corporate finance, tax, advisory, and senior executive roles that remain largely closed without it. But the path to licensure is multi-step and varies meaningfully by state. This complete guide walks through every requirement from the moment you start your accounting education to the day you receive your licence.
The Three Es: Education, Examination, Experience
CPA licensure in every US state requires satisfying three core requirements, universally known as the Three Es: Education (typically 150 semester hours including specific accounting and business coursework), Examination (passing all four sections of the Uniform CPA Examination within an 18-month or 30-month rolling window, depending on the new rules), and Experience (typically one to two years of qualifying work experience under a licensed CPA's supervision). Some states add a fourth requirement: an ethics examination.
The specific requirements — credit hour minimums, coursework requirements, experience duration, whether experience must be in public accounting — vary significantly by state. Always verify with your specific state board of accountancy, as requirements change and the information below reflects general national norms.
The 150-Hour Education Requirement
Most states require 150 semester hours of college education — 30 hours more than a standard 120-hour bachelor's degree. This extra 30 hours typically comes from one of three paths: a combined bachelor's/master's programme in accounting (the most common path), a master's in accounting (MAcc), taxation, or business administration (MBA) taken after completing the undergraduate degree, or a fifth-year of coursework at the undergraduate level.
Within those 150 hours, most states require a specific minimum of accounting courses (typically 24–30 hours covering financial accounting, auditing, taxation, managerial accounting) and business courses (typically 24 hours of economics, finance, business law, management, statistics). Check your state board's specific curriculum requirements before planning your coursework.
Many states allow candidates to sit for the exam before completing all 150 hours — typically once they have completed 120 hours and are within one year of meeting the full requirement. This allows candidates to begin the exam while finishing their final coursework rather than waiting until graduation.
The Uniform CPA Examination
The Uniform CPA Examination is developed and scored by the AICPA (American Institute of CPAs) and administered by Prometric testing centres across the United States. It is computer-based and available year-round. The exam underwent a major restructuring effective January 2024 — the CPA Evolution initiative — which replaced the old four-section structure with a new core-plus-discipline model.
Under the new model, all candidates take three core sections plus one discipline section of their choice. The core sections test the foundational competencies every CPA must have. The discipline section allows candidates to demonstrate deeper knowledge in their chosen area of practice. All four sections must be passed within an 18-month window (for those who pass their first section on or after January 1, 2024).
The Four Exam Sections
Auditing and Attestation (AUD) — Core: Ethics and independence, assessing risk, performing audit procedures, forming conclusions, and reporting. This section tests both knowledge of auditing standards and professional judgment in applying them. For a detailed study strategy, see how to pass AUD.
Financial Accounting and Reporting (FAR) — Core: The broadest section, covering US GAAP for commercial entities, governmental accounting, not-for-profit accounting, and financial statement analysis. FAR consistently has the lowest pass rate of all four sections. See how to pass FAR for the strategy that works.
Taxation and Regulation (REG) — Core: Federal taxation (individual, entity, property transactions), business law, and professional responsibilities. See how to pass REG.
Discipline Section (choose one): Business Analysis and Reporting (BAR) focuses on financial analysis, corporate finance, and data analytics. Information Systems and Controls (ISC) covers IT governance, systems, and cybersecurity. Tax Compliance and Planning (TCP) goes deeper into individual and entity tax strategy. Most candidates choose BAR if pursuing public accounting, TCP for tax practices, or ISC for technology-focused roles.
Applying to Sit for the Exam
The application process: (1) Apply to your state board of accountancy to determine exam eligibility — submit transcripts and pay the application fee. (2) Once approved, NASBA (National Association of State Boards of Accountancy) issues a Notice to Schedule (NTS), valid for 18 months. (3) Schedule your exam sections at a Prometric centre using the NTS. (4) Take the exam. (5) Receive your score report (typically released within a few weeks on AICPA score release dates). Scores are reported on a scale of 0–99, with 75 required to pass. For a full explanation of how scoring works, see how CPA exam scoring works.
The Experience Requirement
Most states require one to two years of qualifying work experience under the supervision of a licensed CPA. What counts as qualifying experience varies: some states require public accounting experience specifically; others accept experience in industry, government, or non-profit settings. The experience must typically involve applying accounting, auditing, tax, advisory, or financial skills at a professional level.
Keep careful records of your experience — dates, employer, supervisor's CPA licence number, and a description of duties. Most state applications require your supervising CPA to sign off on the experience verification. Starting to document this from your first day of employment saves significant effort at the licensure application stage.
The Ethics Exam
Many states require a separate ethics examination in addition to the Uniform CPA Exam. The most common is the AICPA Ethics Exam — a self-study course on the AICPA Code of Professional Conduct, concluded with a proctored examination. Some states have their own state-specific ethics exam covering local accountancy laws and regulations. Check your state board's requirements specifically.
Realistic Timeline and Cost Estimate
| Stage | Duration | Typical Cost |
|---|---|---|
| Bachelor's + additional 30 hours (MAcc or equivalent) | 5 years | Varies widely by programme |
| CPA review course | 12–18 months study | $1,500–$4,000 |
| Exam fees (all 4 sections) | 18 months to pass all 4 | ~$1,000–$1,500 total |
| Application and licensing fees | Varies by state | $100–$500 |
| Work experience | 1–2 years | Paid employment |
| Total out-of-pocket (exam only) | ~$3,000–$6,000 | |
The return on this investment is well-documented. CPAs consistently earn 10–15% more than non-credentialed accountants at comparable experience levels, with the premium widening significantly at senior levels. See the detailed analysis in is the CPA credential worth it.
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