Every organization and business, whether it’s a start-up or a well-established firm, needs a Certified public accountant. The demand for CPAs’ services are always high regardless of the economic climate. As a result, accountant salaries and compensation packages have steadily increased year over year with more career stability than ever before.

But before you get too excited about how much money CPAs make, there are a few factors that influence the national average CPA compensation plan that you should know. Let’s examine the factors influence Certified Public Accountant pay, so you can see how much you might make when you become a CPA.

Key Takeaways

• The average Certified Public Accountant salary is approximately $122,000 per year in the US
• A CPA license will increase your annual salary approximately 15 percent
• CPA salaries depend largely on your experience, position, company size, industry, and location

What is the Average CPA Salary & How Much do Accountants Make?

According to the 2023 Robert Half Accounting & Finance Salary Guide, the average CPA salary is $122,000 per year which is a 2.3%-5.8% increase from the previous reporting year. Additionally, the average starting salary for accountants in the US is between $40,000 – $57,500 according to the Bureau of Labor Statistics May 2022 report.

The pay scales vary greatly based on several factors like location, firm size, and experience.

Key Factors Affecting CPA Salaries

Like other professions, accountant pay can vary greatly. So, before we can talk about specific salaries and compensation plans, we have to look at why CPA salaries fluctuate so much.

The main five factors that influence how much a Certified public accountant gets paid are:

• Experience Level
• Industry/Sector
• Company/Firm Size
• Public Accounting vs Private Accounting
• Geographical Location

Let’s take a look at each of these factors to see how you can use them to increase your salary.

Experience Level

While applying for the first time to an accountant’s post, your experience is counted in the quality of grades, school, the esteem of the internships, and other related extracurricular activities.

The prerequisite for most states is of two years, at least, of experience in public accounting before crossing the eligibility of a candidate to get the post of a CPA. At the stage of a junior accountant, one may be preparing to get certified as a CPA or is already a CPA.

Industry/Sector

The first major verdict a fresher takes is to choose between public/corporate or private/management accounting. However, a certified public accountant can work in either of the sectors. Both the sectors’ accountants are well-remunerated, but in spite of it, the public accountants are paid slightly more than their private counterparts. Also, certified public accountants make 10–15% more income annually than non-certified ones. 

Company/Firm Size

Large companies pay more to attract talent. The more assets and employees a company has, or the more customers they cater to, the more intricate accounting job descriptions become. This, in turn, gets reflected in the salaries of the accountants.

Public Accounting vs Private Accounting

Public accounting and private accounting are two completely different career paths. Public accountants work for public accounting firms to service large companies performing auditing functions and tax compliance work. Private accountants, on the other hand, work directly for companies as internal accountants doing accounting, strategic planning, and controlling activities.

Although both public and private accountants can be certified, they have very different jobs that pay much different salaries.

Geographical Location

Location plays a big role in how much a CPA earns. For instance, a CPA in California makes on average $96,210 while a CPA in Georgia makes $86,200, according to the Bureau of Labor Statistics May 2022 report. Different parts of the country have different standards of living. As a result, the salaries fluctuate accordingly.

As per the Bureau of Labor Statistics, California ($88,130), Texas ($80,170), Pennsylvania ($77,810), Florida ($74,960), and New York ($101,440) are the highest paying states and employers in the USA. These are just figures reflecting accountant payrolls, not the CPAs.

Now that we have an idea of what influences salary plans, let’s look at the numbers.

Certified Public Accountant Salary Guide

The base salary for CPAs is $81,500 as of 2021. Nevertheless, as per the American Institute of CPAs and Accounting Today, senior-level CPAs can earn more than $150,000.

Plus, the experience of CPA can lead an individual to take up other work options, such as that of a certified financial officer or a company comptroller.

CPA Salaries in Public Accounting Firms

Certified public accountants who work in public accounting work for CPA firms. Larger firms typically pay more top CPA talent than smaller firms.

Thus, a licensed CPA at a Big Four firm will likely make more than a CPA at a smaller regional firm. Let’s look at the salary figures for CPAs in public accounting based on their job.

Public Accountant Salary

Audit/Assurance Services

CPAs who work in audit or assurance services typically perform audit functions for companies that need their financial statements examined for investors or creditors.

These functions include financial statement, internal control, compliance, operational, forensic, and performance audits.

Here are the most current auditor salaries for each level of experience according to the 2024 Robert Half Finance & Accounting Salary Guide.

Tax Services

Certified public accountants perform tax services for small and large companies, individuals, trusts, and non-profit organizations every year. These services range from preparing income and sales tax returns to complying with quarterly and unemployment insurance reporting.

Larger public accounting firms typically do not take on smaller accounts and only work on larger company returns and tax compliance issues.

Here are the most current tax accountant salaries for each level of experience according to the 2024 Robert Half Finance & Accounting Salary Guide.

CPA Salary by Experience Level

CPA salaries vary greatly based on experience level. As you gain more knowledge and skills throughout your career, accounting firms are able to pay you more for your services. Let’s look at the pay ranges for each accountant experience level.

Entry Level

As per the Accounting Today magazine, the entry-level CPAs make anything between $40,000 and $60,000, based on the magnitude of the company.

Mid-Level / Junior Level

A junior CPA takes 1–3 years of experience and earns approximately $57,500 to $88,500.

Senior Level

An experienced CPA of five years or more can expect to get paid between $66,000 and $110,000, based on their experience.

Manager Director Level

Accounting Today has reported that the CPAs who get promoted to the management level or become directors often hold a salary of $66,000 to $150,000. Other posts for veteran CPAs are positions in executive management. This can fetch them a six-figure salary.

As per the US Bureau of Labor Statistics, the median pay was between $107,680 for chief executives in 2020.

Does Geographical Location Affect CPA Salary?

Yes, geographical location is another factor that influences average certified public accountant salaries in the US.

Larger cities with a higher cost of living typically have higher average salaries than smaller cities. The demand for CPA and accounting professionals in general is also higher in bigger cities adding to the pay gap.

What is the average CPA Salary by State?

Here is a table that shows the average CPA salary in each state based on the Bureau of Labor Statistics May 2022 report:

Highest Average Accountant Salary by State

The Bureau of Labor Statistics May 2022 reports the states with the highest average accountant salaries are Washington DC, New York, New Jersey, Massachusetts, and California. Here is a table that shows the salaries for each state.

Highest Average Accountant Salary by Metropolitan Areas

According to the Bureau of Labor Statistics May 2022 report, the Metro Areas with the highest average accountant salaries are Salinas, New York City, Midland, San Jose, and San Francisco.

Below is a table that shows each the salary for each of the five Metros with the highest average accountant salary.

Non-Certified Accountant Salaries

Entry Level:  

For a fresher or till 3 years of experience, a non-certified accountant earns approximately $31,000 to $66,000.

Mid-Level / Junior Level:  

It takes 4–6 years of experience for a non-certified accountant to take home $59,000 to $98,000

Senior Level: 

More than 6 years in the industry fetches a person a senior position with a salary ranging between $72,000–$1,52,000.

What Does A CPA Do?

CPAs, basically, keep and examine financial accounts for government bodies, individual customers, and companies. Private or corporate accountants do not need a CPA license. It is required for public accountants, who either work for companies that offer accounting assistance to others or work independently.

Some CPAs opt for specialization in areas such as financial analysis, information technology audition, internal auditing, management accounting, and tax accounting. This, in turn, adds value to their CV and enhances their opportunity of getting hired.

Job Description / Duties

A CPA is responsible for supporting organizations, corporations, or individuals in tax statement filing and financial planning. They are responsible for overseeing audits, studying and maintaining financial records (digital/physical), coordinating with state/federal/local, and individuals for income tax planning (research, filing, and other budgeting procedures).

Where Do CPAs Work?

The CPAs work in the mentioned sectors:

Public Sector

The CPAs in public accounting are responsible for managing, planning, recording, and advising businesses, individuals, and non-profit in tax, consulting, auditing to achieve their financial goals.

Corporate

CPAs in corporate provide accounting, auditing, maintaining records of financial transactions, and preparing taxes.

Companies

The company CPAs provide all the accounting services as mentioned before along with potential issues or forecasts and advise whether the risk can be taken or not.

Government Jobs

The accounting posts in the government work get a worthwhile median yearly salary of $72,260. Around 8% of all the auditors and accountants worked in the government sector in 2020.

Frequently Asked Questions

Can I make $100k as a CPA?

Yes, CPAs with at least 5 years experience in mid-to-large accounting firms consistently make over $100,000 per year. Depending on your location and position, you may reach the $100k salary threshold before your 5th year of employment according to the AICPA Career Insight Study.

What CPA gets paid the most?

Senior directors and partners are the highest paid CPAs in public accounting with salaries over $200,000 per year. Certified public accountants also work in the executive suite of companies as CFO and COO with salaries ranging from $200,000 to $1M+.

The post CPA Salary Guide appeared first on Number 2.

CPA reciprocity

It also means that every state’s licensing requirements are slightly different. Just because you met the requirements in one state doesn’t mean you will meet the requirements in another. Thus, there are over 50 different sets of rules to follow.

So, how can a certified public accountant practice across state lines? Do they have to undergo extensive licensing processes in every state?

No, CPA reciprocity among states allows accountants to move between state and practice without having to obtain multiple licenses.

Let’s take a look at the requirements for a reciprocal CPA license, so you can use your CPA license in any state you want to practice.

What is CPA License Reciprocity?

CPA license reciprocity is an agreement among US states and jurisdictions that each state will honor another state’s CPA license. This allows licensed CPAs from one state to practice in another state without having to meet all of the licensing requirements of the latter.

This agreement streamlines the process for CPAs to expand their practice in multiple states. This is particularly important for Certified Public Accountants practicing in smaller states with close boarder like the New England states of New York, New Jersey, and Connecticut.

For example, a CPA in New York might have many clients in New Jersey, so it might make sense to set up an office across the river.

Interstate CPA License Reciprocity

Interstate CPA license reciprocity, sometimes called CPA mobility, is an agreement between states to accept other states’ CPA licenses instead of requiring accountants to obtain a local license.

This concept is similar to a driver’s license. You can drive across state lines with the same driver’s license because states have universal license reciprocity.

Like a driver’s license, interstate CPA reciprocity laws allow certified public accountants to practice in states other than on the one they are licensed in without the need to undergo the full licensing process in each jurisdiction.

How to Transfer a CPA License to another State

To qualify for interstate CPA license reciprocity, you must be an active CPA license holder in good standing in your home state and meet certain eligibility criteria like having a clean disciplinary record and fulfilling specific educational requirements.

The application process typically involves submitting documentation, such as proof of licensure, educational transcripts, and work experience verification, along with any necessary fees.

Once an application for reciprocity is submitted, the state board of accountancy in the receiving state reviews the documents and verifies that you meet their specific reciprocity requirements.

If approved, you are granted the ability to practice public accounting in the new state.

International License Reciprocity

International CPA license reciprocity is a legal agreement between two or more countries that each country will recognize the certified public accountants’ qualifications of the other countries. It allows CPAs to practice their profession in foreign jurisdictions without the need to complete an entirely new licensing process. This is particularly valuable in today’s globalized business environment where companies often operate internationally.

How to Transfer a CPA License to another Country

To qualify for international CPA license reciprocity, you typically have to meet the host country’s requirements for accounting principles and standards proficiency.

This may involve passing equivalency exams or providing evidence of extensive experience in accounting practices.

The application process for international reciprocity can be complex depending on the country your are applying to. Most countries require you to submit educational transcripts, proof of licensure, and work experience verification.

Additionally, candidates may be required to pay application and examination fees in order to have their application processed.

Once granted reciprocity, CPAs can legally practice accounting in the host country. Keep in mind, that just because you were granted reciprocity, it doesn’t mean you don’t have to maintain your new license. You may be required to do extra continuing education to keep your CPA reciprocity current.

Reciprocal CPA License Requirements

Interstate CPA license reciprocity simplifies the process of expanding your CPA license or practice geographically, but it doesn’t mean you won’t have to complete additional licensing requirements.

It’s important to be aware of the specific requirements of each state and country you intend to practice in because they can vary.

Most states require CPA license holders to complete the following requirements:

• Bachelor’s Degree
• 150 college credit hours
• Pass the CPA exam
• Ethics exam
• Work experience

Chances are if you already have your CPA license in one state, you meet all of these requirements.

7 Steps on How to get Reciprocal CPA License

Although getting your CPA license reciprocity is fairly easy, you will have to complete the application process.

Here are the 7 steps to complete your reciprocal CPA license application.

1. Eligibility Criteria

Each state has specific eligibility criteria for reciprocity. Typically, a CPA must hold an active license in their home state, meet certain educational requirements, and be in good standing. Check that you meet the requirements.

2. Application Process

Submission of Documents: you typically have to submit the following documents in your application process proof of licensure in your home state, educational transcripts, and verification of work experience.

Application Fees: States may charge application fees for processing reciprocity requests.

3. Review and Approval

State boards of accountancy review the application and ensure that the candidate meets their specific criteria for reciprocity.

4. Conditional Licenses

In some cases, states may grant conditional licenses to CPAs who meet most reciprocity requirements but have minor deficiencies like inadequate educational credits. These conditional licenses may require the CPA to fulfill additional requirements within a specified timeframe.

5. Pay Licensing Fees

Once your application is approved, you will likely need to pay licensing fees to obtain your reciprocal CPA license.

6. Comply with Continuing Education Requirements

Make sure to maintain your continuing education obligations mandated by the new jurisdiction in order to keep your license current.

7. Begin Practice in the New State

It’s official. You are licensed. Now you can practice in the new state.

CPA Reciprocity by State

Most states allow some form of CPA license reciprocity with the vast majority allowing CPAs to practice across state lines. Only about half of the states allow international CPA reciprocity, however.

Here is a table that shows which states honor interstate and international reciprocal CPA licenses.

How much does a Reciprocal CPA License Cost?

On average a reciprocal CPA license cost approximately $500. However, the cost associated with obtaining another CPA license can vary widely depending on the state or jurisdiction in which you are seeking licensure.

Here are the main reciprocal CPA license cost and fees:

• Application Fees
• Examination Fees
• Transcript Evaluation Fees
• License Issuance Fee
• Continuing Education Costs

One fee that might not be readily apparent is association memberships. Some states require CPAs to join a professional accounting organization or state CPA societies in order to get a licnese. Membership fees can contribute to the overall cost.

It’s important to research and budget for these potential expenses before applying for reciprocal CPA licensure. Each state may have its own fee structure, so candidates should consult the specific guidelines provided by the state board of accountancy where they intend to practice.

When should you apply for a Reciprocal CPA License?

Applying for a reciprocal CPA license is a strategic career decision that depends on a few different factors. Depending on your goals and career status, you might want to pursue a license in another state.

Here are some considerations to help determine when to apply for reciprocity:

Meeting Eligibility Criteria- Make sure you meet the eligibility requirements for the state you are applying. This may include holding an active and unrestricted CPA license in your home state in good standing and fulfilling educational and experience requirements.

Immediate Need for Practice- If you are applying for a job in another state, you may want to start the reciprocal license application process right away.

Long-Term Career Goals- If you see a permanent or extended period of practice in a new state, it makes sense to pursue reciprocal licensure early on.

Additional Examination Requirements- Some states may require reciprocity candidates to pass additional exams. Look at the exam requirements before you get too far into the application process.

Timing of the Application Process- The application process for reciprocal licensure can take several weeks to a few months depending on the state, so start your application well in advance of when you intend to begin practice in the new jurisdiction.

Consideration of Peak Work Seasons- If you work in a sector with seasonal demands, like tax preparation, applying for a reciprocal license ahead of the busy season makes sense. This way you will be fully licensed to work with clients come the busy season.

Financial Considerations- Budget for application fees, examination costs (if applicable), and any other expenses associated with the reciprocity process.

Ultimately, the decision of when to apply for a reciprocal CPA license should align with your career goals. If you want to move to a new start or start a new practice in another state, you should apply now. Research the process to see when the optimal time is for you to pursue a reciprocal licensure.

Considerations before Applying for Multi-state CPA License Reciprocity

There are numerous reasons why you would want to apply for a multi-state license, but there are also some things to look out for. Here are a few considerations you should make before you apply for your multi-state license.

Varying State Requirements

Although reciprocity simplifies the process, each state may have unique requirements. These can include specific educational criteria, continuing education mandates, or additional exams. CPAs must be aware of these variations and ensure they comply with the specific requirements of the state they intend to practice in.

Continuing Professional Education (CPE)

Many states have CPE requirements that CPAs must fulfill to maintain their licenses. These requirements typically vary from state to state, but you have to maintain your CPE credit hours in the state where you want to hold reciprocity.

Maintaining Multiple License Renewals

If you have multiple CPA licenses in several states, you may need to renew licenses in each jurisdiction. This can be a handful. It requires staying up-to-date with the renewal process and compliance requirements of each state.

CPA Practice Privilege

CPA practice privilege is an alternative to license reciprocity where you don’t need to submit an application or obtain an additional license to practice in another state. Instead, you apply for a permit to practice in the new state.

This privilege is granted temporarily under specific conditions, typically requiring a CPA to register with the host state and adhere to its professional standards.

Practice privilege is usually meant to be a short-term permit to practice in a state. If a Certified public accountant wants to practice in that state long-term, he or she will need to apply for a reciprocal license.

FAQ

Can CPAs work in multiple states?

Yes, CPAs can work in multiple states. The concept of CPA practice privilege allows them to practice in states where they are not licensed given that they meet certain criteria and register with the host state.’

Does New York have CPA reciprocity?

Yes, New York offers CPA reciprocity, allowing Certified public accountants licensed in other states to practice in New York without having to fulfill all the licensing requirements. However, New York requires CPA applicants to meet specific eligibility criteria before they can complete the necessary paperwork to obtain a reciprocal license.

Can a NY CPA practice in NJ?

Yes, a CPA licensed in New York can practice in New Jersey under the provision of CPA practice privilege. This allows New York CPAs the ability to offer their services in New Jersey without obtaining an additional licenses if they meet the NJ registration and professional standards.

What is the easiest state to get a CPA license in?

The easiest states to get a CPA license are Alaska, Montana, and Wisconsin. All of these states do not have citizenship, resident, or social security requirements nor do they require the 150-credit hour rule.

What states have CPA firm mobility?

All 55 U.S. jurisdictions (50 states, Washington D.C., Puerto Rico, U.S. Virgin Islands, Guam, and the Commonwealth of Northern Mariana Islands) have adopted some form of CPA firm mobility. This allows CPA firms to provide services in other states without obtaining an additional license.

Can you hold a CPA license in multiple states?

Yes, Certified Public Accountants can be licensed in multiple states at one time as most states honor reciprocity laws. CPAs simply need to fill out CPA reciprocal license applications for each state they want to be licensed in.

The post CPA License Reciprocity by State appeared first on Number 2.

The CPA exam is by far one of the most difficult professional exams in the world. With a pass rate of less that 50%, most candidates typically fail at least one section. In fact, it’s not uncommon for candidates to fail multiple sections in a row.

Don’t let these stats discourage you though. Yes, it’s a tough test and you’ll need to commit a few hundred hours of study time in order to pass it, but it is beatable.

Remember, the CPA exam is an academic test. It’s designed to test your knowledge of accounting, tax, and business law. You just need to prepare for it and you’ll do fine.

Let’s look at why the CPA exam is so hard and what makes it such a difficult test to pass.

Is the CPA Exam Hard?

In short, yes the CPA exam is challenging. According to the AICPA, the average pass rate of the CPA exam is between 45-50%. In 2023, the FAR section had the lowest pass rate of 42% while the REG section had the highest at 58%.

This means that over half of the candidates who took the exam didn’t pass. Those aren’t good odds, but that’s why the CPA exam is widely considered to be the most difficult finance exam. Most people don’t pass it.

The exam is made up of four parts that are taken individually. Candidates must pass all of these sections within an 18-month testing window in order to complete the full exam.

• Auditing and Attestation (AUD)
• Business Environment and Concepts (BEC)
• Financial Accounting and Reporting (FAR)
• Regulation (REG)

Each section is made up of multiple testlets covering a huge range of accounting topics from financial accounting and auditing to taxation and business law.

What Makes the CPA exam so Difficult?

There are a number of things that contribute to the difficulty of the CPA exam, but the main one is its size and length of materials.

The shear amount of information covered on the CPA exam is tough to memorize. It’s like cramming an entire college education into one test. After all, most CPA prep books are 500-1,000 pages long!

The length of the test isn’t the only thing that will trip you up though.

Here are five other reasons the CPA exam is so challenging:

Comprehensive Content

The exam covers a vast array of complicated topics including: accounting principles, tax laws, business communication, and auditing procedures. The CPA exam might be easier if it was narrowly focused on a single topic, but it’s not. The exam consists of every topics CPA is likely to encounter in the real world.

High Level of Detail

The exam questions are designed to fool you. They ask questions in specifically tricky ways to get you to pick the wrong answer. You have to know the topics in detail otherwise you’ll tripped up on questions asking about calculations where multiple answers seem correct.

Time Management

Each exam section only allows candidates approximately 4 hours to complete. With 90 multiple-choice questions and 5 task-based simulations on average, that doesn’t give you much time to answer each question. You have to manage your time very well in order to finish the entire exam on time.

Complex Problem-Solving

The AICPA includes intricate problems that require candidates to apply critical thinking and analytical skills in order to solve them accurately. The real-world scenarios presented in the problems are designed to assess how well you think critically and solve a problem you may not be familiar with.

Changing Regulatory Environment

As with all accounting standards and tax regulations, the CPA exam keeps changing. With new laws and regulations, the exam covers new materials that were never tested before. This means candidates have to stay updated on new regs in order to pass.

Is the CPA exam harder than it used to be?

Yes, the CPA exam is just as hard today as it was 30 years ago. Although the AICPA makes changes to the CPA exam every year, they make a conscious effort to maintain the professional standards and level of difficulty.

The fact that the CPA exam difficulty hasn’t changed over the years is the annual pass rate. The pass rate has remained at 50% for decades.

Don’t let the old timers tell you that it is easier or harder now. It’s the same exam. It’s just a different year.

Hardest CPA Exam Section

Determining the hardest CPA exam section is kind of subjective because it really depends on your strengths, professional experience, and study methods.

Historically, most candidates find that Financial Accounting and Reporting FAR is the hardest CPA exam section with an average pass rate of less than 45%.

The FAR section dives deep into the complex topics of GAAP like: consolidations, governmental accounting, and non-profit accounting. It requires candidates to demonstrate a comprehensive understanding of financial reporting, disclosure requirements, and accounting for various entities.

One particularly demanding part of FAR is how much information you have to memorize. You have to memorize way more accounting standards, formulas, and concepts than the other exam sections.

Ultimately, the perceived difficulty of each CPA exam section varies based on your skills and knowledge. Some candidates may find Auditing (AUD) and Regulations (REG) to be more challenging based on their individual strengths and backgrounds.

That’s why it’s so important to get a study guide. You can zero in on the topics you need the most help with and feel prepared on your exam day.

What is the hardest part of the CPA exam?

The hardest part of the CPA exam is the FAR exam section. With less a pass rate of less than 50%, most candidates struggle with the FAR section.

The most challenging part of the CPA exam, as a whole, is the length of materials covered as well as the study time required to learn and memorize all of the information covered on the exam.

Length of Materials

Most CPA prep course books are over 1,000 pages. It’s essentially memorizing all four years of your college courses for a single exam. It’s just a lot of information to learn, memorize, and retain.

Study Time

With this much information to learn and memorize, you have to commit to a lot of study time. Most candidates study more than 300 hours over the course of 6-18 months preparing for the CPA exam.

This is a huge time commitment. Not to mention that if you fail a section, you will need to take it again as well as start your study process all over again.

Keeping a consistent study schedule is one of the most challenging parts of preparing for the CPA exam.

Strategies to Overcome CPA Exam Difficulty

Structured Study Plans: Creating a consistent study schedule that you can stick to is one of the most important ways to prepare for the exam. It’s all about systematically learning the materials.

Comprehensive Review Materials: Get a review course. Using reputable study materials like video lectures and practice exams will speed up your study process and help you understand the information way more efficiently than trying to study on your own.

Exam Simulations: Do as many practice questions and problems as you can. There is no better way to practice for the exam than taking practice exams. It prepares you for the real thing!

Consistent Practice and Revision: Always go back and review the last chapter or test that you took the day before. This will improve your memory of that topic and help you better understand it when you go over it a second time.

Get a Mentor: Sometimes it’s hard to stay motivated to study on your own, so get a mentor or join a study group. We are all in this together. Look for a local group to join to hold yourself accountable. You can also find a mentor in your CPA review course.

How hard is the CPA exam compared with other exams?

The CPA exam is widely regarded as the most challenging professional examination for a few reasons. Its length, number of topics, and technical details covered typically rank it harder than the BAR and MCAT.

The CPA exam requires candidates to demonstrate proficiency in financial accounting, auditing, taxation, and business law, among other areas. Also, the CPA exam tests candidates’ knowledge and skills with both multiple-choice questions and simulation tasks.

Furthermore, the CPA exam is dynamic and adapts to changes in accounting standards and regulations. This means candidates have to stay current with industry developments, tax regulations, and GAAP updates.

Overall, the CPA exam’s depth content coupled with its adaptability to industry changes makes it consistently ranked one of the hardest professional exams.

Is the CPA harder than the BAR?

Yes, the CPA exam is widely considered more difficult than the BAR exam. The CPA exam is a multi-part exam that must be passed within 18-months, whereas the BAR exam is a single test.

Regardless what your lawyer will tell you. No, the CPA exam is not easier than the Bar.

Comparing the difficulty of the CPA exam and the Bar Exam is subjective and depends on your strengths, knowledge, and background. Both exams are rigorous and demanding in their respective fields.

While the CPA exam assesses knowledge in accounting, taxation, auditing, and business law, the BAR Exam, on the other hand, evaluates a candidate’s understanding of legal principles and their ability to apply them in various scenarios.

Ultimately, determining which exam is “harder” is a matter of personal experience and expertise in either accounting or law.

Is the CPA harder than the MCAT?

Yes, most candidates typically consider the CPA exam more difficult than the MCAT exam. The CPA exam covers more detailed information over a wider range of topics.

Comparing the difficulty of the CPA exam and the MCAT (Medical College Admission Test) is challenging because bother exams test vastly different fields of knowledge.

The CPA exam focuses on accounting and taxation; where as, the MCAT evaluates a candidate’s grasp of biological and physical sciences.

Both exams test the candidates’ critical thinking and problem-solving abilities; so deciding which is “harder” largely depends on your background and proficiency in accounting or medical sciences.

Bottom Line

The CPA exam is really hard. The AICPA purposely makes the test difficult to ensure candidates are qualified and well equipped to uphold the highest standards of the accounting profession.

While it requires dedication, discipline, and tons of studying, passing the CPA exam is an achievement that’ll open doors to many different opportunities for your future career in accounting.

It doesn’t matter how tough the exam is. It’s about preparing for it. You can pass anything if you put your mind to it. Get the right study course and get started today!

FAQ

How common is it fail a CPA exam?

Yes, it’s common for CPA candidates to fail at least one section of the CPA exam. On average, CPA pass rates range from 45% to 55% depending on the section. This means that half of candidates fail the exam, according to the AICPA.

How stressful is the CPA exam?

The CPA exam is extremely stressful. CPA candidates often struggle with test anxiety to study prep fears because the exam is extensive and requires months of preparation.

Is the CPA exam the hardest professional exam?

With a pass rate lower than the BAR and MCAT, the CPA exam is often considered the most challenging professional exam. Candidates consistently struggle with the extensive content and rigorous testing format of the CPA exam.

Is the CPA exam difficult to pass?

Yes, the CPA exam is considered difficult to pass due to its extensive content and level of detail. However, with diligent preparation and focused study methods, candidates can increase their likelihood of passing the exam.

How hard is it to pass the CPA exam on the first try?

Passing the CPA exam on the first try can be challenging for any candidate due to the rigorous testing format and complex topics. However, most candidates who form a well-structured study plan and practice simulations are able succeed on their initial attempt.

The post How Hard is the CPA Exam? appeared first on Number 2.

So, you might ask yourself, are CPA review course expenses and fees tax deductible? After all, this is a prep course for an exam that you most likely have to take for your job. Unfortunately, the IRS has heard several cases on this topic and concluded that review courses are non-deductible because they are personal expenses.

After all you aren’t in the business of becoming a CPA.

Let’s check out a few different reasons why you can’t deduct CPA review expenses on your tax return.

Can I Deduct CPA Review Course Expenses on My Tax Return?

No, a CPA review course is not tax deductible because the IRS deems it to be a personal expense and does not treat it like a qualified education expense or a non-reimbursed business expense.

Here are two ways to look at the cost of a CPA review course:

• Educational expense
• Unreimbursed business expense

Both of these will come under different sections of your Form 1040 and will get entirely different treatment under the tax laws. Let me explain further how it comes under each category.

Is It Possible To Deduct CPA Review Expenses On Your Tax Return?

Are CPA Exam Review Costs Deductible As Educational Expenses?

As per the US tax laws, the educational expense can get a deduction on the first page of Form 1040. But the IRS publication 970 that defines the tax benefits of education does not put the cost of buying the study material for CPA as an educational cost or even a work-related study expense.

As per the IRS, the education expenses that get the tax benefit are tuition fees and enrollment and attendance fees at a qualified educational institute.

But since you are not required to enroll for a CPA course at an institute and neither is the CPA review course guide company a qualified educational institute, you do not benefit from it under the educational expense of the tax deductibles.

The IRS further states that an educational expense, which may also include the cost of research done as part of the curriculum, can be deducted as a necessary education expense even when you get a degree for it. The points that have to be considered here are:

• The educational qualification is helping you maintain or improve the skills required for your present business or profession.
• The educational qualification is in terms of your employer’s agreement. Or it may be the requirement of the law as a condition of retention, a position, or a rate of compensation.

You can benefit from deductions of your educational expense when it improves the skill required to maintain your present employment, job level, or pay level. The challenge is to prove to the IRS, with supportive documentation, that your educational expense is necessary to your employment.

Since a CPA course does not meet the criteria mentioned above, it is termed as a non-deductible personal expense.

Are CPA Review Course Fees Deductible as Unreimbursed Business Expenses in Itemized Deductions?

The IRS states that you can claim a tax deduction on the education required to keep your job if the company you are employed with is not paying for it.

So, if you have a job and the employer wants you to get an educational qualification to keep the employment, you can claim deductions under the tax laws. This is when you are personally bearing the cost of the education, and it is not reimbursed by the company you work in.

But in no case can you get tax deductions to prepare a course that qualifies you for a new business or profession that passing a CPA exam does. A CPA can legally undertake many additional services that an accountant cannot.

There has been an argument that a person may wish to keep his previous job even after completing a CPA course and not undertake any new CPA-related services. In this case, the court has established that one may not get exemptions on their intention. When the education qualifies you for a new job role, you cannot seek an exemption under the tax laws.

The US tax law (Pub 970) that defines the tax benefits for education states that the material required to study for the CPA exam is not a work-related educational expense. Therefore, it cannot be tax-deductible. A CPA course review material is used to prepare you for a new job or business.

The IRS has also compared a CPA and a lawyer who has completed his bachelor’s degree but needs to study one more year to be eligible for full-time employment. The additional one-year study cost is required to meet the eligible profession criteria, but it still comes under a non-deductible educational expense.

Furthermore, the job of a CPA is very different from an accountant (non-CPA). The course prepares you for a new business or profession, and therefore the expense of it is non-deductible under US educational tax deductions.

A CPA course will prepare you for a very different profession or job. It is not related to your current job and profession on which you can claim tax deductions as an unclaimed business expense.

FAQ

Is CPA exam reimbursement taxable?

Yes, CPA exam reimbursement provided by an employer is generally considered taxable income. It is subject to federal income tax and, in most cases, state and local taxes as well.

Are Exam fees tax-deductible?

Yes, exam fees for professional certifications, including the CPA exam, can be tax-deductible if they are required to maintain or improve skills in your current job. However, certain conditions and limitations may apply, so it’s advisable to consult a tax professional for specific guidance.

Are CPA exam fees covered under the Lifetime Learning Credit?

No, CPA exam fees are generally not covered under the Lifetime Learning Credit. This credit primarily applies to eligible educational expenses related to post-secondary education, rather than professional certification exams.

The post Is CPA Review Course Tax Deductible? appeared first on Number 2.

Getting this many credits is challenging to say the least. It either means taking extra courses that you don’t care about or taking courses that won’t really help prepare you for the exam. Both ways you end up wasting time instead of prepping for the exam.

Luckily, there is a way to earn college credits while studying for the CPA exam. Let’s look at several programs that allow you to complete CPA review courses for college credit and complete the 150-hour requirement.

3 Ways To Study For The CPA Exam And Earn College Credits Online

Earning college credit while studying for the exam is the best of both worlds. You get to prepare for the CPA exam while you are reaching your college credit hour requirements. It sounds too good to be true.

Well it is possible, but you have to sign up for the right programs and make sure you college accepts the credits.

Here are several different ways to earn college credit studying a CPA review course.

Becker CPA Review College Program

Accounting students have a lot on their hands, and not everyone’s schedule, demands, and notices are the same as the next one. To cater to your schedule, the learning method that you prefer as well as your coursework for the semester or year, you get personalized CPA courses when you partner with Becker CPA Exam Review.

With the Becker CPA Review College Program, you gain access to a navigator tool that allows you, as well as your mentors, to track your progress and performance so far. This way, the program gets to become even more customized to address and improve the areas where your competency lacks.

You also get customized assignments that include an entire test bank of MCQs and task-based simulation tests. What makes them even more updated is the automatic, real-time assignment scoring system, where you can check your results and judge your progress as soon as the test is finished.

You can check more about the Becker CPA Review College Program by visiting their website, noting the much-needed information, and contacting them in case you have some unanswered questions and doubts you wish to clear out.

Surgent CPA Review College Program

Students have unique learning requirements, and Surgent’s courses are designed to accommodate all of these situations, aiding in studying, assessing, and reviewing their material.

Within each phase, you get to experience and go through tests, readings, questions, and custom content that judges your exam readiness, provides you with a conclusive diagnostic report of your performance, and a broad ReadySCORE appears before you to let you know how much you are prepared for the same.

The practice phase comes at last. The A.S.A.P. program works in aiding candidates to qualify for the CPA Exam by reinforcing existing learning and knowledge during the preparation process.

To get to know more about the Surgent CPA Review College Program, you can head over to their website and decide for yourself if it suits your goals.

University Of West Florida CPA Courses

This course is a unique online college-credit CPA exam prep course for accounting students, allowing them to earn up to six graduate-level credit hours towards their Master of Accounting degree.

While selecting the review course partner, the college – University of West Florida (UWF), took into consideration both efficiency and effectiveness.

In this way, Becker’s role is to give you a platform for learning that will enable you to keep on track towards passing the CPA exam. Furthermore, you’ll also get study materials, sample problems, task-based simulations, and stimulated exams enabling you to prepare better and get a better idea of what the exam is like in real life.

You will have the following benefits if you enroll in the UWF master’s degree Becker CPA review course:

• Obtain graduate credit hours while studying for the CPA Exam.
• Gain two of the most prestigious credentials in the accounting world with a UWF master’s degree and a CPA certificate.
• Many employers will reimburse students for graduate coursework.
• Students who enroll in a graduate degree program may qualify for student loan deferment or financial aid.

If you would like to gain more information on the review course and partnering college, you can head over to the UWF website and get to know all about their CPA exam review courses to resolve your queries.

Can I Earn College Credits By Studying For The CPA Exam?

Yes, some CPA exam courses earn college credit towards your accounting degree and 150-credit hour CPA requirement. Thus, you can earn college credit by studying for the CPA exam.

Will All Colleges Accept These CPA Exam Credits?

Yes, most accredited colleges will accept CPA exam credits if they have an accompanying program.

You should check with the college admissions office to find out whether or not they accept the CPA exam credits acquired through the above CPA college programs. Online review courses are a popular option for busy students, but not every college has come around to accept the exam credits acquired through them.

The short answer is that not all colleges will grant CPA exam credit from these courses. To reduce the chances of any mistakes or accidents occurring, it’d be best if you inquired with your college first before picking the programs.

Will A CPA College Course Prepare You For The CPA Exam?

Yes, a college level CPA course will help prepare you for the CPA exam, but you should also think about getting a full review course.

With the CPA exam approaching, the above three methods have become increasingly popular for acquiring more college credits online. But the actual effort, of course, comes from your side. If you aren’t dedicated to your goals and have the right study resources by your side, a CPA college won’t be able to prepare you for the exam to the fullest extent.

Even though these CPA colleges and their materials will help you understand many subjects, it’s not a comprehensive review courses.

You will need to fully prepare with a CPA prep course, flashcards, and past year question paper. These resources will help you to sharpen your knowledge in order to successfully pass the exam.

In these programs, a college partners with a company that offers CPA review courses. You can see them from the viewpoint of a compromise. They are half and a half – college course in one part and a review course in the other.

In addition to taking advantage of these programs to earn additional college credits while studying and preparing for the examination, it is strongly recommended that you also enroll yourself in a review course.

Bottom Line

Earning more college credits improves your chances of landing a high-paying job immediately after passing the exam.

Plus, you get a solid education before you start working as a CPA, so you have an advantage in the race. You will save time and money and pass the exam faster and easier if you begin your preparation in college.

Check with you State Board and College to make sure you meet all of the CPA exam requirements before applying for a program. Then start studying and earning credit at the same time. What a way to double up.

The post CPA Review Courses for College Credit appeared first on Number 2.

That’s why getting a professional CPA course is so important. There is no way to properly prepare for all of the auditing, taxation, regulatory framework and procedures, management and planning of finances, analytics, and ethics on the exam without one.

In the last few years new learning formats and platforms have been developed by CPA review providers. The two main platforms being adaptive and linear learning:

1. Linear or the traditional learning pattern
2. Adaptive content software that delivers content to match a student’s specific requirement

Let’s walk through the differences between linear vs adaptive learning CPA courses to understand more about these techniques for preparing for a CPA examination.

What is Linear Learning for the CPA exam?

Think of linear learning as a long followed traditional learning pattern that provides the same course material for all CPA aspirants. It is more like a one-size-fits-all approach where no distinction is made between the student’s skill levels or mental ability. This approach may suit some, but others will remain unimpressed by it.

Linear learning follows the same learning trajectory for all students meaning everyone follows the exact same step to learn from the exact same material. There is step-by-step graduation of a concept until it is fully understood.

Linear learning is called traditional because the education system has employed it for decades. You will begin by learning to write your alphabet, words, and sentences. Or you will discover your numbers, then additions, and then multiplications. It is a step-by-step textbook learning format that has been followed for ages.

Pros Of The Linear Learning Method

Linear learning is an age-old learning format that is still followed because:

• It is easier to apply to large groups of students: Linear learning is best used for large groups of students where it is practically impossible to access an individual’s capabilities. It has worked for the public education system delivering good results.
• It is cost-effective: Individual-based learning will always be less expensive than customized learning methods. This works for cost-sensitive people.
• It is easier to implement: linear learning methods are more focused on the teachers as it is easier for a teacher to implement it in a classroom.

Cons Of The Linear Learning Method

Though the linear learning method has worked for the masses, it is not designed to suit individual needs. The major flaws of this learning format are:

• It does not focus on an individual’s learning capacity: The fundamental flaw of the linear learning method is that it considers all individuals the same. Which we know is never the case. The skills and capacity of each person differ significantly, and using a uniform method for all fails to provide the best benefit to them.
• It is not adaptive: linear learning is not adaptive, which means it will not change as per the requirements of the individual taking the course. The teaching structure and the course material remain the same for all.

Linear learning methods are best suited for the masses.

What is Adaptive Learning for the CPA exam?

Adaptive learning personalizes the non-linear learning approach. The software used for adaptive learning starts by accessing an individual’s knowledge and capacity. It will then tailor the teaching to suit an individual’s personal needs. The instructions will focus on your weak areas and challenging concepts rather than spending time on topics that you understand well.

You cannot say that the best learning technique is moving forward in steps like from alphabets to words to sentences. Think of a child. For example, they may learn to speak much before being introduced to the alphabet—the connection and the correlation that the mind forms do not follow a linear approach.

With time other methods of learning have developed that have given better results. A non-linear way follows teaching more topics together than the step-by-step approach to the subject. The connection and the correlation that the mind develops in this form of learning help better understand the subject.

The adaptive learning software is designed to introduce more topics to you together in a rational manner so that you can form better connections between concepts and, at the same time, find the curriculum interesting. As you continue to use the software, you will find itself adapting to your learning requirements.

Pros Of The Adaptive Or Non-Linear Learning Method

Adaptive learning is the new age learning method that has many advantages:

• It is a more effective learning method: Not all individuals are the same, and neither are their strengths and weaknesses. Adaptive learning focuses on an individual’s weaknesses rather than their strengths. The software also adapts itself to your learning methods, giving you a better result.
• It makes studying more interesting: The software jumps between topics rationally, giving you bite-size models of cases. This makes your connection to the topics better and is also a more exciting approach to learning than the sequential learning order.
• It makes the most efficient use of your time: Since the adaptive learning method focuses on your area of need, it makes better use of your study time. You will not waste time going over topics you understand.

Cons Of The Adaptive Or Non-Linear Learning Method

The non-traditional methods of learning can have disadvantages in a few places. They are:

• It is challenging to use it for the masses: the customized learning format that adaptive learning incorporates is not easily possible to be used for the masses.
• It is more expensive: the adaptive method of learning focuses on an individual’s need which will be more costly to tailor than a same pattern course booklet.

This learning approach is best suited for professional studies like the CPA prep material. It caters to an individual’s learning needs and develops a study plan that can get you through the examination.

Linear vs Adaptive Learning: Time Requirement

A linear study is similar to going through chapters in a book. You will have to spend a lot of time grasping each concept. This will take more of your time than the adaptive learning method.

In the adaptive learning method, the software gauges your skills and knowledge and concentrates on topics that you require to pay more attention to. The information given to you is in bite-sized learning to make better connections between the topics, and it is more interesting for you.

What is the difference between Adaptive and Linear Learning Study Materials?

Linear learning education methods use traditional text books that are studied chronologically, whereas adaptive methods use computer programs to actively create a course as you go through the subjects.

Bottom Line

While the linear study approach has worked for generations, delivering good results, it is not best suited for professional studies like the CPA examination.

CPA examination candidates vary in their skills, qualification, and experience. The personalized study material for their preparation will save them a lot of time and will be more rewarding to them in terms of scores earned.

A CPA course will make you an expert in accountancy and give you access to global career opportunities. With a CPA certification, your scope of work will increase, and you will have an option of practicing accountancy, working with a corporate, or working with an individual entity.

The post Linear vs Adaptive Learning CPA Review Course Software appeared first on Number 2.

Most candidates only pay attention  the academic CPA requirements, so they rarely look into whether a SSN is required. This isn’t typically a problem for US citizens, as they already have SSNs. International candidates are a different story.

Most states will only accept citizens of the United States. There are however some states such as Louisiana, Hawaii, North Carolina, and Alabama that will not restrict non-citizens from pursuing CPA. International students can also register and take the examinations from select exam centers. Even though most states will ask for the SSN in the application, holders of H4 visas qualify for waivers that help them reduce the cost of the exam.

Let’s look at the Social Security requirements for the CPA exam and where you can take the exam without a social security number.

Do you Need a Social Security Number to Take the CPA exam?

Yes, you may qualify to take the CPA exam with or without the social security number depending on the state. This is an especially important requirement that most people fail to pay attention to as they focus on other qualifications.

Considering most non-US citizens and international students are likely not to have the SSN, some states have loosened their requirements to accommodate these candidates, making it not mandatory.

States such as Wisconsin, Illinois, Montana, New York, South Dakota, Alaska, Guam, Maine, Michigan, New Mexico, North Dakota, and the Northern Mariana Islands do not require a social security number to take the exam.

Step By Step Guide For International CPA Candidates

Applying for the CPA exam as an international candidate can be challenging. Candidates located outside the United States often run in to a few different requirements and snags that U.S. citizens don’t have to deal with.

Here are the steps to apply for the CPA exam as an international candidate without a Social Security number:

Choose a jurisdiction

Even though the overall management of CPA is handled by the American Institute of Certified Public Accountants, state accountancy boards play a direct vital role in pre-qualifying and licensing candidates.

You should therefore choose a jurisdiction, ideally one of the states with no SSN requirements. Contact the relevant board for guidance on the application process and fees.

Application

After you have settled on the jurisdiction, you should proceed to make the application and pay the necessary exam fees. The board will communicate on whether you qualify or not as soon as possible.

Choose an exam center

An international student can take the exam from the nearest testing center of their choice. You can check out the list of countries that have centers from the website of the National Association of State Boards of Accountancy.

Study materials

After completing the above three stages, you should start preparing for the exam. The latest content and topics are usually updated by the AICPA. You can then decide if you will enroll in a CPA study course or how to get the updated study materials and prepare for the exam.

One of the biggest challenges faced by international students eyeing the coveted CPA certification is that the exams are uniform. All candidates sit for the same examination at any given time.

This might pose a challenge to those who are not conversant with the changing laws and regulations governing the profession. It is therefore highly recommended that you purchase CPA study guide from reputable providers online.

Should You Get A US Social Security Number To Take The CPA Exam?

The US social security number is assigned by the Social Security Administration to U.S citizens, qualified non-immigrant employees, and permanent U.S residents. Getting this document is subject to thorough grilling and verification by the authorities to ascertain your eligibility.

The question of whether you should pursue an SSN or not will depend on your career plans. If your aspiration is to acquire the certification so that you can work in other countries, then you do not need to apply for SSN. You can simply take the exam in any of the states that do not require an SSN. Different countries will also have to appraise your qualifications before issuing a license.

Candidates who are keen on permanently relocating to the United States and practicing as CPAs will have to get the SSN because it is a mandatory legal requirement. You should therefore check with the authorities on what needs to be done to get an SSN.

How Can An International CPA Candidate Apply For A SSN?

In case you would prefer to apply for a social security number, there are a few recommended strategies. Note that the best option is always to register in a state that does not need SSN. Upon attaining the certificate, it is easier to secure employment and thereafter pursue the SSN.

Apply for the social security number alongside your immigrant visa application in your home country. Expect the social security card at least three weeks upon arrival in the United States. This should only be possible upon fulfillment of other requirements.

Non-immigrants and those who do not apply for SSN alongside their visas can apply for the SSN by presenting a petition and notices of approval to any Social Security office within the U.S indicating that they are authorized to work in the U.S and legal status of immigration.

As an international J-1, J-2, and F/M-1 student, you should provide documents such as the 1-20 certificate of eligibility for non-immigrant students, work permits, stamped employment-based authorization, and birth certificates for age verification, and other documents that authorizes your employment in the U.S.

Is A SSN The Biggest Obstacle For An International CPA Candidate?

No. That is far from it. In fact, the social security number is the least of most candidates’ concerns because some states allow international students without the social security number to take the exam in their jurisdictions.

Therefore, you can simply identify one of these states and register there. Some of the biggest obstacles to ambitious international CPA candidates eyeing the coveted CPA certifications include:

Language: The exam is set in English. There are no translated versions. Non-native English candidates might encounter challenges keeping up with the pace required to accurately answer all the questions in the allocated time. You must therefore dedicate more time to sharpening the written and spoken English language alongside going through the CPA study materials, which can be exhausting.

Cost: It is more expensive for international students compared to taking the exams. It is estimated that the self-study CPA material alone may cost as high as $4,000. It gets worse if you must retake the exam.

Limited test centers: Even though you can take the exam outside the U.S, the few test centers may still be far for most candidates, especially if you are not a resident of the select locations. Furthermore, you will have to plan for travel, visas, air flight, accommodation, and other requirements that will eat into your pockets.

Approvals: For some reason, not all applications are approved by the relevant state boards. In fact, it averages only 50%. This locks out many qualified CPA candidates from the exam.

Time-restricted: Candidates have 18 months to pass all the exams for the four CPA sections. As a result, candidates are forced to work extra hard to ensure that they pass within the set time limits.

Content of exam: The CPA exam is centered around U.S topics. With the ever-changing legislative environments, these requirements are equally adjusted annually. These changes may be foreign to international students whose interpretation in an exam setting may affect their overall score.

Can I Become a CPA without a Social Security Number?

Yes, you can become a Certified Public Accountant without a SSN. Becoming a Certified Public Accountant can be challenging for international candidates, but it is doable. You must plan accordingly and understand what strategies you need to take in order to apply.

The best way to register is to choose a U.S. jurisdiction that does not require a social security number. That way you won’t be burdened with the process of applying for a SSN while you are trying to study for the CPA exam.

If you choose to work in the US after you pass the exam, that might be the best time to apply for your SSN. Until then, start studying and prepping for the exam.

The post Can I Take The CPA Exam Without A Social Security Number?  appeared first on Number 2.

Before you can register to take the uniform Certified Public Accountants examination, you must meet some eligibility requirements.

Every state sets different requirements that candidates must meet to be eligible to take the CPA exam, but most jurisdictions require similar qualifications. That’s why you should check with your respective state to ensure that you are eligible before starting your application process. This way, you increase your chances of acceptance to take and pass the exam.

The last thing you want is for your state to reject your application simply for failing to meet the basic requirements or for making avoidable errors in your exam application.

Let’s walk through the CPA exam requirements that you will have to complete in order to sit for the CPA exam in your state.

CPA Exam Requirements & Qualifications 

Although each State Board has unique requirements for candidates, most states require CPA candidates to meet eligibility qualifications in the following areas:

1. US Citizenship
2. State Residency
3. Social Security Identification
4. Minimum Age Requirements
5. Education Requirements
6. Work Experience Requirements

These main categories vary among states, but most have some basic requirement in these areas. Let’s take a look at each to see if you qualify for the exam.

1. US Citizenship

This is one of the most important CPA exam requirements that candidates must be aware of. Since the Certified Public Accountant designation is a US credential, it makes sense that many states require US citizenship in order to take the exam. This is not good for international candidates, however.

There are a few states such as North Carolina, Hawaii, Louisiana, and Alabama that do not consider the citizenship of the candidates when qualifying them for the exam. Such states are especially preferred for international candidates to take the exam.

Even though you may be qualified to take the examination without meeting the citizenship requirements, most states are likely to have additional requirements for certification and licensing after you have passed the four CPA exam sections.

2. State Residency 

You might meet the US citizenship requirements, but various CPA state boards will have an array of other specific requirements that you should meet, especially state residency. Save for a few states such as Maryland, Kansas, and Louisiana; other states do not consider state residency.

Candidates interested in taking the exam in specific states but do not meet the residency requirement can still meet this requirement by proving that they have stayed in the state for not less than six months, have been employed, or share evidence of a physical address within the state. This is especially true for college students who attended college in a different state than they grew up.

Note that the state residency will be helpful when choosing the CPA exam center that is convenient to you.

3. Social Security Identification

Do you need a Social Security number to take the CPA exam? Most states require CPA candidates to have a valid Social Security number to sit for the exam.

The need for a social security identification number is closely related to the citizenship and state residency requirements. It is, however, not a mandatory requirement in several states like Illinois, Montana, South Dakota, Wisconsin, and New York.

By default, most candidates based in the US will have a social security number, making it easier for them to meet this requirement. However, international students can avoid the hassle of pursuing the SSN by simply applying in the above states that do not require it.

4. Minimum Age Requirements 

How old should you be before you can apply and take CPA examinations? Well, almost all states have set the minimum age for taking the exam at 18 years. This leaves out minors who are yet to meet this age requirement.

It is argued that the age restriction is linked to other requirements such as proof of state residency, citizenship, and social security identifications, which are only issued to legal adults.

Minors interested in pursuing the CPA exam are free to study at their own pace but will only be allowed to register upon attaining the minimum age.

5. Education Requirements 

Despite the existence of the first four requirements, most candidates do not pay much attention to them as they tend to focus more on the educational requirements. Even though the minimum academic requirements vary from one state to another, there are some constants that cut across the 55 states.

All states only accept candidates with at least a bachelor’s degree or 120 credit hours from an accredited university or college. However, the coursework should include not less than 24 accounting credits. Save for Massachusetts, Maine, Hawaii, Alaska, and Georgia, a degree in accounting is required.

Some states demand 150 semester hours or an equivalent of a master’s degree to take the exam and get the CPA license. In fact, only Virgin Island does not consider the 150-hour rule as a pre-licensure requirement.

Candidates with degrees from other fields other than accounting are required to have pursued a certain number of accounting and business courses. International candidates or those who pursued their degree courses outside the United States should check with the respective state boards to determine whether their credentials meet the basic academic qualifications.

Note that most states will only allow candidates that have already graduated upon meeting the 120 or 150 credit hours to take the CPA exam. However, there are a few states like New York, Arizona, and California that may allow candidates that are on course towards meeting this requirement, especially having completed specific accounting and business coursework and almost guaranteed of graduating to take the CPA exam.

You just need to check with your state board to know if this applies.

6. Work Experience Requirements 

Do you need to have some work experience to take the CPA exam? No. This is no work experience requirement to take the CPA exam in all 55 testing jurisdictions. So long as all the requirements have been met by a candidate, then they are eligible.

However, most states only license candidates with at least two years of experience in public accounting or auditing. Some states will also license candidates with non-public accounting experience only that the acceptable number of years is higher when compared to those in public accounting.

It is important to understand the distinction between CPA exam requirements and licensing requirements. You may take and pass the exam, but that does not automatically guarantee a license.

Some states practice a one-tier system where the license and certificate are only issued to candidates who meet both academic and work experience requirements. Others have a two-tier system where a certificate is issued once you pass the four sections of CPA and a license later upon meeting the experience requirements.

Why Are These Requirements Necessary? 

Professional certification bodies are trying their best to ensure that only qualified and competent professionals are allowed to practice. Accounting is a noble profession that requires passion and integrity.

Tax laws keep changing, requiring the professionals to be dynamic to keep their clients or employers compliant. The staffing needs of most employers and their expectations are equally diverse as they try out new models of doing business. It is therefore important that only the best candidates get the chance to take the exams and get certified.

What to do if My CPA Application is Rejected by the State Board? 

It is unlikely that you will be rejected by the state board to take CPA if you meet the basic requirements. However, some avoidable errors can contribute to the rejection. To avoid this, take your time to go through your state board’s instructions and ensure that you tick all the boxes.

If you are an international candidate, do not forget to have your transcripts validated. Missing, wrong, or incomplete information are major contributors to the rejection of most applications. Note that the application fee is non-refundable. To avoid this, be thorough to guarantee acceptance.

CPA Exam Requirements by State

Since every state has slightly different exam requirements, it’s important to check with your state board to make sure you meet the specific qualifications where you plan to get licensed.

Here is a list of state CPA exam requirements. Click your state to get started.

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Washington
• Washington, DC
• West Virginia
• Wisconsin
• Wyoming

Are You Eligible to Take the CPA Exam?

That’s a full list of the the exam qualifications. If you meet all of the requirements, you can start your CPA application process now. But before you do that, make sure you are ready to take the exam.

The best way to prepare for any section is by having a complete study guide to help you learn and memorize all of the key topics tested on the exam. There’s no way to know everything, so you’ll need a guide to that matches your study style to help you ace the exam. Don’t wait. Get started now!

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This sounds easy enough, but there are several things that you need to think about before you schedule your exam date. If you mess up your scheduling, you may be required to pay extra fees or even worse–postpone your exam date until the next testing window.

Let’s walk through the Prometric CPA scheduling process and the steps you need to take to ensure you get the right exam date the first time.

What Is A Prometric Testing Center?

A Prometric testing center is simply a centralized place where the CPA exam is administered globally. The centers are managed by Prometric Testing, an independent company based in the U.S that runs a wide network of world-class test centers for various certification exams, including CPA, in more than 160 countries.

As an independent company, Prometric only serves as a host for the exam and candidates and has no affiliation with the various accountancy state boards, NASBA, or even AICPA. Their role is simply to supply the venue and technology for candidates to take the exam. They have no other role or influence in the exam administration or outcome.

How To Choose The Right Prometric Testing Center Location

Even though Prometric may have thousands of testing centers globally, choosing the right one for your CPA exam should not be a difficult decision to make. If you however make the wrong choice, you risk running into many challenges that could be avoided. Consider the following factors.

Distance: The proximity of the testing center to you is the most important consideration you need to make. The last thing you want when preparing for an exam is to travel to distant locations when there are many qualified centers nearby.

Familiarity: How familiar are you with the state or area in which the center is located? This will help you with accessibility and socialization. Consider the language and other factors such as culture. Yes, you can rarely get lost in the modern-day, thanks to online maps, but you do not want to be late for an exam simply because you missed a turn on the highway.

Dates: It is possible that exam dates and times for your nearest CPA exam center may not be convenient for you. Do not force yourself to settle on a date that is not convenient simply because of proximity. You might have other commitments such as work to attend to. Instead, you can check with other centers whose dates and times best fit into your schedule.

Accessibility: What is the most convenient way of traveling to the chosen exam center? If you will drive, find out if there is enough parking, and the costs associated with it, if any. Also, remember challenges that come with changes in time such as traffic. Avoid rush hours if you can.

Reviews: Find out what earlier candidates who have used the center in the past have to say about it. Online reviews can be amazing tools to help shape opinions and inform decisions. Find out if there is a lot of distraction from traffic, professionalism of the staff, cleanliness, ventilation, and spacing, among others. Avoid centers with negative reviews.

How To Search for Prometric Testing Center Locations

After you have carefully considered the above factors, then you can go ahead to choose your Prometric center. Everything is done from their website.

Here is the process:

1. On the Prometric CPA website, go to ACTIONS then click on LOCATION.
2. From the drop-down list, choose your COUNTRY. For U.S candidates, select STATE, then NEXT.
3. From the drop-down list, choose the CPA exam section you want to take, then NEXT.
4. Fill in your address details then click on SEARCH.
5. Go through the provided list and make your choice.

It is important to emphasize that the final decision on the Prometric center should be informed by other factors, especially the dates, and preferred dates and times.

Steps To Schedule Your CPA Exam With Prometric CPA

Now that you have picked out the best Prometric testing center for your location, you will need to schedule your CPA exam date.

Here are the steps to schedule a CPA exam section at a Prometric CPA testing center:

1. Visit the Prometric website, click on SCHEDULE EXAM.
2. Agree to terms and conditions.
3. Input your personal details: the NTS ID number and Last Name.
4. Select your location, date, and time.
5. Schedule the exam.

Keep Your Notice To Schedule (NTS)

Before you logon to the Prometric website to schedule your exam, make sure you have your NTS handy.

The Notice to Schedule (NTS) is an official document issued by NASBA to formally give you the go-ahead to schedule for the exam at a Prometric center. It is usually sent to your personal CPA central account about 1-3 days after you have made the payment.

NTS must be presented to the center plus personal identification. You aren’t allowed to sit for an exam at the testing centers without the NTS. It is advisable that you only schedule for an exam that you are confident to take within the next six months.

When Should You Schedule Your CPA Exam

Save for a few exceptions such as special changes by the AICPA and rescheduling exams for failed CPA sections, you are free to schedule for the CPA exam all year round in most states. The testing windows are open every two months, giving candidates the freedom to choose dates that best work for them.

You must schedule your exam within 6 months after receiving your NTS, failure to which you lose the exam fees paid for the CPA section. This is a deliberate measure to discourage procrastination. You should therefore plan accordingly to avoid running into such inconvenience. Some candidates are known to delay scheduling until it is too late, possibly a few months before the exam dates.

Don’t wait until the last minute to schedule your exam though. Testing centers book up quickly and you might find that your desired location is full by the time you try to sign up for a testing slot. It is therefore smart to secure your slot as soon as you receive the NTS to avoid such surprises that may force you to choose a center you do not like.

Can You Reschedule Your CPA Exam?

Yes. There are many unforeseen circumstances that may force you to reschedule your CPA exam. In such instances, you can easily choose alternative dates from the Prometric website subject to payment of a rescheduling fee depending on the duration as follows:

• No fees for rescheduling dine 30 days or more.
• $35 if you reschedule any time between 5 and 30 days.
• 100% Prometric fee if you reschedule between 1 and 5 days.
• Rescheduling in less than 24 hours is not allowed. You will therefore have to reapply.

What Day Is Best To Schedule the CPA Exam?

The CPA exam is offered every weekday at all Prometric testing centers during the open testing windows. There isn’t a standard best day of the week to take the exam. It really depends on your schedule and your ability to prepare for the exam.

While Monday might be some people’s best day, others find a Wednesday or Friday a better choice. You should therefore go with a day of the week that you have the time and feel most prepared.

What Should You Bring To Prometric On Exam Day?

On the material exam day, you should ensure that you have everything in order. Do not panic or get over-excited. Do not push yourself to try and memorize all the reading materials on this day. Instead, ensure that you have all important documents ready.

Here’s a list of documents you need to bring to the Prometric Testing Center on your CPA exam date:

• Two valid forms of ID
• Original copy of your Notice to Schedule (NTS)
• Water
• GPS for directions

Prior planning is important. In case the exam center is nearby, try to pass by a few days or weeks before the exam day. Memorize the route, if you will be driving, and familiarize yourself with the environment.

Start Preparing for the CPA Exam

After you have successfully scheduled the CPA examination, you should not procrastinate. Instead, dig into the relevant study material right away. Remember, your chance of passing the exam is majorly dependent on your level of preparedness.

Come up with a study schedule and get the right latest study materials. Most CPA review course providers can provide you with all-inclusive study guidelines and tips. All the best in your CPA exam.

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According to the AICPA the historical average CPA exam pass rate is approximately 50% depending on the exam section.

This low of a passing rate makes the CPA exam one of the toughest professional exams out there. It has 4 different sections with each CPA exam part having an average pass rate of around 50%. That’s not good.

It is important to note that the different sections have differential pass rates because different complexities of materials and content are covered on each section. Thus, some exam sections are considered easier than others.

Let’s take a look at the most current CPA exam passing rates and analyze the scoring trends to see if they are going up or going down.

Latest CPA Exam Pass Rates by Year Analyzed

Every quarter the AICPA publishes the average CPA exam pass rates for that period. This gives CPA candidates a good idea of what to expect on their next exam date. As the CPA exam keeps changing and evolving, so do the passing rates.

Here are the pass rates for each of the previous 13 years.

2023 CPA Exam Pass Rates

Not all of the 2023 pass rates have been published yet, but you can see a clear downward trend from the 2022 rates. This could be do to the current CPA exam changes or the newly updated 2023 CPA exam blueprint.

2022 CPA Exam Pass Rates

Over the last four quarters, the pass rates for each section of the CPA showcased quite a range, 45% – 63%. The highest pass rate was witnessed in the BEC (Business Environment and Concepts) section, and the lowest pass rate was in the FAR (Financial Accounting and Reporting) section.

The BEC, commonly known as the straight forward segment in the CPA, witnessed a 62.83% pass rate in 2021. While this is the highest in the range, it is a 3% decrement from the average 2020 BEC pass rates. Following close in the REG section, with a 59% average pass rate in 2021. So, it can be stated that students attempting the CPA in 2022 should probably lead with either of these two sections.

On the other hand, the AUD and FAR sections had a much lesser pass rate. AUD was at 54% while FAR was at an all time low of 44.7%. So, students who are extremely sure of their strengths can consider leading with the toughest section, which is FAR. Since the FAR section comprises of a series of comprehensive questions, it is also the most time-consuming.

Overall, the pass rates for each individual segment fell in the past year. However, this is not to be taken as a moment of downfall, as it is important to note that the pass rate for CPA is always rising and falling.

Historical CPA Exam Passing Rates

The historical CPA exam passing rates are interesting to look at because it shows how the exam has changed over the last 13 years. There was a large spike in passing scores 2020 mainly due to the testing centers being closed and the exam changing.

After 2020 the pass rates decreased from their high in 2020 but they stabilized higher than their pre-2020 highs. Thus, more candidates are passing the exam post 2020 than pre-2020.

CPA Exam Passing Rate by Section Compared

Every year there is quite a bit of fluctuation in each section of the CPA. This is mainly due to the changing content covered on each exam section. It’s common for an exam section to have a lower pass rate the first year new materials and concepts are introduced on the exam.

Let’s go through each section to realize how the fluctuating pass rates can help you make a decision when to take the CPA exam.

AUD Passing Rates

Here is a graph and table that illustrates the AUD exam section passing rates for the last 10+ years.

While last year the pass rate for the AUD section fell by 3%, it is not something alarming. The pass rate can be seen as always being close to 50%; and the 2021 pass rates still show the exact same range.

AUD is consistently one of the lowest passing CPA exam sections, second only to FAR. Most candidates struggle with auditing topics because they are rarely covered in college. In fact, most CPA candidates only take a single auditing course in college before taking the CPA exam. Also, this subject does not have much overlap with other CPA exam topics. Thus, many candidates struggle with the auditing section.

BEC Passing Rates

Here is a graph and table that illustrates the BEC exam section passing rates for the last 10+ years.

The BEC section almost always has the highest pass rates of any CPA exam section. With typical passing rates of 55% or more, BEC is widely considered the easiest CPA exam section.

This is why first time test takers prefer to attempt this section before the others. Not only will you able to complete it quickly, but you will also get a boost of confidence by performing well in the first section you attempt.

In the last few years, BEC was actually surpassed by FAR as the most passed CPA exam section for a few months. This didn’t last long as the BEC passing rates went back up just a few short months later.

FAR Passing Rates

Here is a graph and table that illustrates the FAR exam section passing rates for the last 10+ years.

The FAR exam section is typically considered the hardest CPA exam section because it is the longest and usually has the lowest passing rate. This has been consistently true for the last 5 years, as FAR has been the lowest performing exam section with pass rates under 45%.

While this is the section with the largest drop in pass rates, it is fairly noticeable that 2020 had an unusually high pass rate. So, this drop is actually bringing it back to the average of 45% pass rate. So, perhaps this is something you would want to attempt in the Q3.

REG Passing Rates

Here is a graph and table that illustrates the REG exam section passing rates for the last 10+ years.

The REG section has seen increased passing rates for the last 5 years with a current pass rate of 61%. That means that in 2022 Regulations had the highest passing rate out of any CPA exam section. It was even higher than BEC! This speaks to many of the changes the AICPA has made to the REG section in the last two years. Many candidates are finding this section much easier than in years past.

Since the Regulations exam covers business law and the tax code, the content on the exam is constantly changing. The AICPA makes sure that candidates know when tax code updates will appear on the exam, so you will have plenty of notice which version of the tax code you will need to study before you show up on exam day.

CPA Exam Pass Rates by Age Group

Pass rates for the CPA exam differ according to age as well. Younger candidates, especially those still in college, fare much better than older candidates who have been out of college for many years. This is often due to fact that the CPA exam is an academic exam. If you haven’t take an accounting course in a number of years, you’ll need to brush up on the concepts a bit more.

Here is a table that illustrates the CPA exam passing rates by age group.

As you can see, younger CPA candidates have a much easier time passing the exam than older candidates. In addition to the amount of time since college graduation, older candidates typically have busier schedules with less time to study for the CPA exam than younger candidates.

CPA Exam Pass Rates by University

CPA pass rates also vary by University. This makes sense because colleges teach different levels of curriculum that will prepare students differently to take the CPA exam.

Here’s a table of the top 10 accounting college programs along with their students’ CPA exam passing rates.

These CPA passing statistics are good to know if you are trying to decide which University or college to attend. You want to enroll in a program that not only prepares you to pass the CPA exam but one that prepares you for your future career as a Certified Public Accountant.

CPA Pass Rate Seasonal Trends

When you look at any of the pass rate graphs you can see a trend throughout the year. Many candidates think that the exam changes throughout the year and is easier or harder in different quarters. Thus, they try to take the exam in a quarter with a higher passing rate.

This myth isn’t true. The exam is the same all year with the standard material changes throughout.

I think the only reason when the pass rates change from season to season is that people’s lives change. Candidates are busier during the 4th quarter because of the holiday season. Likewise, tax accountants are busier in the 1st quarter because of tax season. Thus, the passing rates are lower. It has nothing to do with the exam changing.

Reasons For Low Pass Rate In CPA

Apart from the fact that the CPA exam is critically tough and features a lot of comprehensive sections, there are a few reasons which add to the generally low pass rates.

Most people don’t study hard enough

If you are someone who thinks a general knowledge of the subjects will get you through the CPA, it’s going to be a tough journey for you. Most candidates spend hours practicing mock CPA tests and specific sections to ensure that they manage to stay within the pass rates.

Most people don’t discipline themselves and put in the time

CPA requires a level of discipline that many are not ready to align themselves to. You will have to practice every day and stick to a plan that you have created before the entire process begins.

People have jobs, families, and lives

Yet another reason why younger candidates are able to pass more in the CPA. They have lesser aspects in life keeping them distracted.

How To Increase Your Chances Of Passing CPA

Set a schedule

While most people don’t realize this, creating a detailed schedule will be of huge help in ensuring that you pass the CPA exam in one go!

Use a course to study

There are plenty of online courses to help you prepare. Make sure to compare them and choose one that is personalized and provides enough practice.

Get rid of distractions

This is the time to focus on yourself and your end goal. Only then will you be able to succeed without a doubt!

FAQ

Here are some of the most common CPA exam passing rate questions.

Is there an upward trend in pass rates of the past 5 years? Why?

The trend in the CPA pass rates are always fluctuating. While there is an overall upward trend, year on year reduction of pass rates is also noticeable. This is because the pass rates for each segment of the CPA are prone to fluctuations as well.

Is there a seasonal trend in pass rates?

Yes, CPA pass rates in the early quarters (Q1 and Q2) are lower than that of latter quarters.

Is the Exam easier in some months?

No, the exam remains the same throughout all quarters. But, you may have more time to prepare if you attempt in the later quarters.

Should I schedule my exam based on pass rates?

While the pass rates can serve as a sort of guidance, you should schedule your exams based on your schedule and ability to prepare for the exam. Average pass rates don’t matter if you don’t have enough time to study on your own.

Time to Start Studying

Now you know what you are up against. Most people fail at least one section of the exam before passing the entire thing, but don’t get discouraged. Just set a study schedule and stick to you. Analyze the changes in the exam and make a plan to beat the CPA in one go!

The best way to do this is with a CPA study guide. There’s no other way to learn everything that will covered on the exam. Get one that fits your learning style and get to work!

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