Accounting CPA Certification

Becoming a CPA is not easy, but at WGU, we'll help you prepare. While requirements vary slightly by state, here are the general steps to becoming a certified public accountant:

1. Get the education you need. Earn at least a bachelor's degree with an adequate number of credits in business or accounting. Keep in mind that these education requirements can vary by state. In most states, you need 150 credit hours. This means that for most people, a master's degree is necessary to meet the education requirements and have the skillset needed to be successful.  At WGU, we offer both bachelor's and master's degrees in accounting. Many CPA candidates choose to earn their master's degrees before taking the CPA exam. That said, in many cases CPA candidates are allowed to sit for the exam after 120 or 130 credit hours, meaning you can take the CPA exam while earning your master's degree. 
2. Apply to take the CPA exam sections. In order to even take the CPA exam, you must first apply for and receive a Notice to Schedule (NTS) from the AICPA. It's best to familiarize yourself with the AICPA CPA exam process as there are a number of items you'll need to be aware of, including state requirements, where tests are offered, and how long you have for each section of the test. There are four sections (and in many cases also an ethics exam), and most people take them separately over a period of 18 months. The AICPA also has a resource site with exam information.
3. Study for the exam sections. Your course and master's degree study will help you understand accounting concepts and principles, but you will want to take extra time and use additional resources to prepare for the CPA exam. It's best to take a formal review course. At WGU, we offer free CPA test preparation materials to our Master of Accounting (MAcc) graduates to help them prepare specifically for the examination.
4. Pass all four sections of the exam. Keep in mind that the CPA exam consists of four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). You must pass all four sections within 18 months. CPA candidates split up each section into its own sitting, so plan on essentially taking four different tests over a span of no longer than a year and a half.
5. Pass the ethics exam if necessary. In most cases, students need to pass the ethics exam to become a CPA. That said, some states do not require it, so be sure to check with your state's Board of Accountancy for specifics.
6. Get enough work experience. Each state has different work experience requirements. Familiarize yourself with the ones for your specific state and ensure you meet those. You can work towards those requirements before you become a formal CPA. You may choose to be employed or take an internship that will help you accumulate the necessary number of work hours to qualify for licensure.
7. Apply for and earn your state-issued certification. Before you can earn your state license, you must apply. These requirements can vary. However, in general, you'll likely need 150 credit hours of education with an accounting emphasis, which includes 30 semester hours in accounting subjects, 24 in business administration subjects, and at least 15 in accounting in graduate-level courses. You'll also likely need at least one year of experience in the field, confirmed by a licensed CPA. Remember to reach out to your state's Board of Accountancy for specifics.

There are many benefits of becoming a CPA. Here are some reasons to become a certified public accountant:

• Greater career opportunities. As a CPA, you open yourself up to more jobs that require higher levels of certification. Many firms or companies prefer or require accountants to be licensed CPAs. As a certified public accountant, you may be eligible for roles and responsibilities that would not be available without a CPA designation.
• Higher pay. Since they have higher credentials and more experience, certified public accountants usually earn a much higher salary than their non-certified counterparts, particularly as they gain experience and seniority. On average, CPAs start out making at least 15% more than accountants without the credential, and pay can rise higher as more experience is gained.
• Enhanced job security. CPAs are in high demand. In fact, according to the U.S. Bureau of Labor Statistics, the accounting and auditing field is projected to grow 4% by 2029, meaning more than 60,000 jobs will be added to the industry, with CPAs being the most qualified and sought-after to land those jobs.
• Higher job satisfaction. A certified public accountant often works with many different professionals in exciting positions. A CPA may manage a team, or they may audit and help less experienced accountants. Typically, they are in a position to do more managerial work and less of the so-called "grunt work" that less experienced accountants start on.

• How to apply. You must apply to take each of the four sections of the CPA exam. The prerequisite requirements vary slightly by state and jurisdiction, so check with the NASBA to get started. Once you apply, you'll get a Notice to Schedule (NTS), which is valid for six months. You may then choose a location to take your test.
  
• The format. There are four, four-hour sections. You will schedule and sit for one section at a time. Each section is composed of five smaller sections called testlets. Every testlet contains multiple-choice questions, task-based simulations, and written communication tasks (in the case of the BEC section). 
• How it's scored. The exam is scored on a scale from 0 to 99. To pass each of the four exams, your score must total at least 75. If you fail a section, you will receive a candidate performance report that will help you understand what you need to improve in order to pass. 
• The pass rate. The Uniform CPA Examination is a very difficult test. In fact, the pass rate for some sections is around 50%. It is common for people to have to retake sections of the test. While it's difficult to pass, it's not impossible, especially if you are well prepared. At WGU, we'll help you get ready. We're proud to say that our students have higher pass rates than average.