How to become a certified public accountant

Summary

• CPAs interpret financial information to help organizations make better decisions, and every business needs accurate accounting to operate, grow, and stay compliant.
• The path to licensure centers on three Es: education, examination, and experience, followed by applying for your CPA license.
• Education requirements typically allow you to sit with 120 semester hours but require 150 hours for licensure; you can reach 150 via a fifth year or graduate coursework, and states may require specific accounting, business, and ethics credits.
• The exam now uses a Core plus Discipline model: pass AUD, FAR, and REG, then choose one of BAR, ISC, or TCP; each section uses MCQs and task-based simulations, requires a 75 to pass, must be completed within an 18 month rolling window, and many states also require a separate ethics course.
• Most states require at least one year of supervised experience under a CPA in public accounting, industry, government, or academia; CPAs can work in public audit and advisory, corporate finance and FP&A, government or nonprofits, and academia, with typical fees of about $1,500 to $4,000 for exam and licensure or $2,500 to $7,000 including a review course, and solo practitioners should consider general and professional liability insurance.

If you have a degree in accounting, or are considering getting one, a logical career goal would be to become a Certified Public Accountant, or CPA. CPAs interpret financial information to help companies make decisions that lead to their success. Every company, large or small, needs to account for revenues and expenses and use that information to stay in business and, ideally, grow. 

Becoming a CPA

There are three components to the requirements to become a CPA:  education, examination and experience. Here is what to know about each of the three Es. 

Education

Candidates generally need a bachelor’s degree to qualify for the exam. Most states allow you to sit once you have at least 120 semester hours but require 150 semester hours for licensure. You can reach 150 hours by completing a five-year program that leads to a master’s in accounting, earning a master’s in another business discipline, or taking additional upper division or graduate coursework to reach the hour requirement. Many states also specify minimum numbers of accounting and business credits, and some require an ethics course. For your state’s exact rules, consult the NASBA state board directory.  

Examination

As of 2024, the Uniform CPA Examination follows a Core plus Discipline model. All candidates must pass three Core sections—Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG)—and then choose one Discipline: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP). The exam uses multiple choice questions and task-based simulations, and each section has a scaled passing score of 75. You do not need to pass all four sections in one sitting, but you must pass all required sections within an 18-month rolling window that begins when you pass your first section. Testing is offered year round with continuous testing. For content outlines and skill weightings, see the AICPA Exam Blueprints. For application steps, schedules, and score releases, use NASBA’s CPA Exam hub and schedule your appointment through Prometric. Many states also require a separate ethics component, often the AICPA Professional Ethics course or a state-specific equivalent; check your board’s requirement and timeline. 

Experience

After you pass the exam, you will need supervised experience before you can put those three letters after your name. Most states require at least one year of qualifying experience verified by a licensed CPA; some require more. Experience can often be earned in public accounting, industry, government, or academia, though attest services may require specific attest hours and supervision. Because rules vary by jurisdiction, confirm details such as duration, qualifying roles, and documentation on your state board’s site.

Once you have met the education requirement, passed your three Core sections and one Discipline, completed your experience, and satisfied any ethics requirement, you can apply for your CPA license. With your license, you can pursue many different career paths in accounting. For example, you could:

• Continue in public accounting, where you will audit and advise organizations on accounting and controls
• Work in corporate accounting, including roles like controller, FP&A leader, or chief financial officer
• Serve in government or the nonprofit sector across finance, audit, and program accountability roles
• Teach accounting in an academic setting

Some CPAs specialize in areas such as business valuation, forensic accounting, information systems and controls, or tax planning and advisory.

Becoming a CPA is not easy – there’s a lot of hard work involved. But once you get your license, it can open the door to a wide variety of interesting employment opportunities. If you decide to go into practice for yourself, be sure to protect yourself with business insurance. Even the most conscientious accountants face the risk of claims and lawsuits, so general liability and professional liability insurance are critically important.

Frequently asked questions

How long do I have to pass all four CPA Exam sections?

You have an 18month rolling window that starts on the date you pass your first section. Any section that is older than 18 months at the time you pass your final required section will expire and must be retaken unless your state board grants an extension.

How do I choose a Discipline: BAR, ISC, or TCP?

Pick the Discipline that aligns with your intended work. Business Analysis and Reporting (BAR) fits assurance, controllership, FP&A, and advisory roles that rely on data and reporting. Information Systems and Controls (ISC) suits IT audit, internal controls, risk, and systems focused assurance. Tax Compliance and Planning (TCP) is best for preparation, planning, and advisory in tax.  

What does the CPA journey typically cost?

Plan for roughly $1,500 to $4,000 in exam and licensing fees across the full process, which includes your application, per section exam fees, any registration or scheduling fees, an ethics course if required, and your initial license. Many candidates also invest in a commercial review course, often bringing the total to about $2,500 to $7,000.

Do I need public accounting experience to get licensed?

Not always. Many jurisdictions accept qualifying experience in industry, government, or academia as long as it is verified by a licensed CPA, although attest work usually requires specific attest hours and supervision. Most states require at least one year of experience, but some require more.

Do I need to take an ethics exam or course?

Many states require either the AICPA Professional Ethics course or a state-specific ethics exam as part of licensure. Requirements and passing scores differ by jurisdiction, so verify with your board.

What is on the CPA Exam and how is it scored?

Each section includes multiple choice questions and task based simulations and is scored on a scale where 75 is passing.