How to Become a CPA: Steps, Exams, and Licensure

Becoming a Certified Public Accountant (CPA) is one of the most reliable ways to build a stable, well-paid career in business and finance. CPAs are trusted advisors who prepare and audit financial statements, file taxes, and help organizations make sound financial decisions. The credential is issued by state boards of accountancy, and it carries weight in every industry, from public accounting firms to government agencies to private companies. The path is demanding, but it is also highly structured, which means you can plan every step with confidence. This guide walks you through the entire process, from choosing the right degree to passing the Uniform CPA Examination and meeting your state's licensing requirements. Along the way, you will learn how to balance education, experience, and exam preparation so you can move from student to licensed professional without wasted time or money.

Understand What a CPA Does and Why the Credential Matters

Before you commit to the journey, it helps to understand the day-to-day reality of the job. CPAs do far more than fill out tax returns. They audit public companies, consult on mergers and acquisitions, design internal controls, and advise executives on financial strategy. In public accounting, you might spend your first years reviewing client records and testing financial statements. In corporate accounting, you could work on budgeting, forecasting, or regulatory reporting. Government CPAs handle public funds and compliance, while forensic CPAs investigate fraud. The common thread is a deep responsibility for accuracy and ethical judgment.

The CPA license is valuable because it is a legal designation. Only licensed CPAs can sign audit opinions and represent clients before the IRS. That exclusivity creates demand and supports higher earnings. According to the Bureau of Labor Statistics, accountants and auditors earned a median annual wage of about $79,880 in May 2023, and CPAs typically earn more than their unlicensed peers. The credential also travels well: while licensing is state-specific, most states offer reciprocity pathways, so you can move without starting over.

If you are still exploring healthcare or other licensed professions, our guide on how to become a registered nurse offers a useful comparison for how licensure works in another field. But for accounting, the key takeaway is that the CPA is a career-long investment that opens doors to leadership roles, including controller, CFO, and partner.

Step 1: Earn a Bachelor's Degree in Accounting or a Related Field

The first formal requirement for CPA licensure is a bachelor's degree, and most state boards expect it to include a substantial number of accounting and business courses. You do not have to major in accounting, but doing so is the most efficient route because it satisfies the core subject requirements while preparing you for the exam. Typical courses include financial accounting, managerial accounting, auditing, taxation, and business law. If you majored in something else, you can often fill the gaps through a post-baccalaureate certificate or a master's program.

Accreditation matters here. Choose a program accredited by a recognized body such as the Association to Advance Collegiate Schools of Business (AACSB). State boards verify that your degree comes from an accredited institution, and attending a non-accredited school can delay or disqualify your application. You can research options through platforms like CollegeDegree.Education, which connects prospective students with accredited colleges and universities. That kind of matching service can save you hours of searching and help you compare online versus campus programs side by side.

Many students work while earning their degree, and online accounting programs have become a popular way to balance school with a job. Just confirm that the program meets your state's specific course requirements, because those rules vary. Some states require 24 semester hours in accounting, while others require 30 or more. Keep a checklist of your completed courses so you can demonstrate compliance later.

Step 2: Complete the 150 Semester Hour Requirement

Almost every state requires 150 semester hours of college coursework to sit for the CPA exam or to be licensed. A standard bachelor's degree is about 120 hours, so you will need an additional 30 hours beyond the four-year degree. This is the single most common hurdle for aspiring CPAs, and it is best to plan for it early. The extra hours do not have to come from a master's degree, but a Master of Accountancy or a Master of Business Administration with an accounting concentration is the most straightforward path.

There are several ways to reach 150 hours, and the right choice depends on your timeline and budget. Here are the most common options:

• Complete a combined bachelor's and master's program, often called a 4+1 or 150-hour program, which lets you earn both degrees in about five years.
• Earn a bachelor's degree and then a Master of Accountancy, which adds specialized coursework and often prepares you for the exam.
• Take additional undergraduate courses at a community college or university to reach the required hours, which is usually the cheapest option.
• Use a post-baccalaureate certificate in accounting if your bachelor's degree is in another field.

Whichever route you choose, verify the specific accounting and business course requirements for your state board. Some states cap the number of community college credits they accept, and others require a certain number of upper-division accounting hours. A little planning now prevents a costly surprise when you apply for licensure.

Step 3: Meet Your State's Specific Education and Exam Requirements

CPA licensure is administered by the board of accountancy in each state, so the details differ. Some states require you to complete all 150 hours before you sit for the exam, while others let you take the exam after 120 hours and complete the remaining credits before licensure. Some states require a specific number of accounting hours, and a few require ethics coursework. You must apply to your state board, submit transcripts, and receive approval before you can register for the exam.

The application process typically involves filling out an online form, paying a fee, and arranging for your colleges to send official transcripts directly to the board. This can take several weeks, so start early. If you plan to move after graduation, consider which state offers the most favorable requirements for your situation. Many candidates choose a state with lower experience requirements or faster processing times, then apply for reciprocity later. Just be sure to follow the rules carefully, because misrepresenting your education can lead to denial or disciplinary action.

Step 4: Pass the Uniform CPA Examination

The Uniform CPA Examination is a four-part test that assesses your knowledge of auditing, financial accounting, regulation, and business concepts. Each section is scored on a scale of 0 to 99, and you need a 75 to pass. The exam is computer-based and offered year-round at testing centers, though some states have specific testing windows. You can take the sections in any order, and most candidates spread them over 12 to 18 months.

Preparation is the deciding factor. Most successful candidates use a structured review course that includes lectures, practice questions, and simulated exams. Set a study schedule that fits your life, and stick to it. A common approach is to study for one section at a time, take the exam, and then move to the next. Here is a practical sequence many candidates follow:

1. Start with Financial Accounting and Reporting (FAR), which is often the most challenging and foundational section.
2. Move to Auditing and Attestation (AUD) while the financial accounting concepts are still fresh.
3. Take Regulation (REG), which covers tax and business law, after you have built confidence.
4. Finish with Business Analysis and Reporting (BAR) or another discipline section, depending on your state's requirements.

Do not underestimate the time commitment. The American Institute of Certified Public Accountants reports that candidates often spend 300 to 400 hours preparing for all four sections. Build in review days, take practice tests under timed conditions, and learn from your mistakes. If you fail a section, you can retake it, but you must pay another exam fee and wait for the next testing window.

Step 5: Gain the Required Professional Experience

Most states require at least one year of professional accounting experience before you can be licensed. The experience must be supervised by a licensed CPA and must involve the use of accounting skills, such as auditing, tax preparation, or financial reporting. Some states accept experience in government or industry, while others require public accounting. The details matter, so check your state board's rules before you accept a job offer.

You can often start gaining experience while you are still taking the exam. Many accounting firms hire candidates right out of college and provide supervised work that counts toward licensure. If you work in a corporate accounting department, confirm that your supervisor is a CPA and that the role meets your state's criteria. Keep detailed records of your duties and hours, because you will need your supervisor to verify them on a formal form when you apply for licensure.

For readers who are also considering a career in medicine, our article on how long it takes to become a doctor shows how another profession structures its supervised training. In accounting, the experience requirement is shorter, but it is just as important to document properly.

Step 6: Pass the Ethics Exam and Apply for Licensure

Most states require candidates to pass an ethics exam before they are licensed. The exam is usually a self-study course offered by the state board or the AICPA, and it covers professional conduct, independence, and integrity. It is not as difficult as the Uniform CPA Exam, but you must complete it to receive your license. Some states also require a specific number of ethics continuing education hours each year.

Once you have met the education, exam, and experience requirements, you can submit your licensure application. The application typically includes official transcripts, exam score reports, experience verification forms, and the ethics exam certificate. You will also pay a licensing fee. After the board reviews your file, you will receive your CPA certificate and license number. Congratulations, you are now a licensed CPA.

Keep in mind that licensure is not a one-time event. Most states require continuing professional education (CPE) to renew your license, usually 40 hours per year. You must track your CPE credits and comply with ethics requirements. Failing to do so can result in a lapsed license, which means you cannot legally use the CPA designation.

Step 7: Maintain Your License and Advance Your Career

After licensure, your career options expand quickly. You can pursue roles in public accounting, corporate finance, government, or education. Many CPAs eventually earn an MBA or a specialized certification such as Certified Information Systems Auditor (CISA) or Certified Fraud Examiner (CFE) to move into leadership. The CPA credential also makes it easier to start your own practice, which offers flexibility and unlimited earning potential.

To stay competitive, treat your license as a living asset. Complete your CPE hours on time, network with other professionals, and keep up with changes in tax law and accounting standards. The profession rewards continuous learning, and the CPA designation is a signal to employers that you have met a rigorous standard.

Becoming a CPA takes discipline, but the payoff is a career with stability, respect, and room to grow. Start by confirming your state's requirements, choose an accredited degree program, and build a study plan you can sustain. The steps are clear, and with careful planning, you can join the ranks of licensed CPAs who shape financial decisions across every sector of the economy.