How Long Does it Take to Get a CPA License?
The CPA license is the most popular and highly valued certification in the area of accounting. This license lets the professional offer various kinds of financial services to business entities and individuals, such as preparing taxes, offering advice on managing one’s money, and even auditing. While the way an individual state issues CPA licenses may vary, these are general steps that prospects may take. This article will cover all the basics of the CPA licensing process – prerequisites, exam preparation time, and the licensure process itself.
Necessary Conditions for Obtaining a CPA License
To even begin getting a license to practice as a CPA, a candidate must have certain educational credentials and experience provided by the board of accountancy in different states.
The most common prerequisites include:
Bachelor’s Degree
To apply, you will need to have a bachelor’s degree from an accredited college or university. Several states prescribe that the degree should be in accounting or a related area; others allow degrees in various fields.
Accounting Coursework
Every state has standardized a certain amount of credit hours that candidates need to take accounting and business courses. They include completing 24 semester hours of accounting and completing 24 semester hours of business courses.
Work Experience
Many states have suggested that anyone who wishes to attend the CPA examination must have professional working experience in accounting or auditing. This requirement means generally one to two years, with variations across states.
CPA Exam Preparation
After undergoing the above steps, a candidate should begin preparing for the CPA exam. The CPA examination is a four-sectional exam recognized by the AICPA.
The exam covers the following areas:
-Audit and Assurance (AUD)
-Business Environment and Concepts (BEC)
-Financial Accounting and Reporting (FAR)
-Regulation (REG)
To attend the exam, candidates must create an account on the AICPA website and pay for the examination. Prometric has made the exam available throughout the year at their testing stations. The preparation for the CPA exam depends on the candidate’s prior experience; it still takes months to a year or more to prepare for the CPA exam.
CPA Exam Process and Timeline
The CPA exam comprises four sections, which can be in any order that the candidate wants. Aspiring auditors are allowed up to eighteen months to complete all parts after registering. If it is not passed within this timeframe, then additional fees will be charged, and a new registration period will begin.
Here’s an estimated timeline for taking and passing the CPA exam:
Pre-Registration (Three to Six months)
Applicants get appointed to this stage and should ensure they have submitted their application, meet fee costs, and study for the exam. During this time, you may be buying the notes, going to the tutoring centers or review sessions, or even hiring a private tutor.
Taking the Exam
It takes two to five days to complete each section of this examination. The CPA exam is also available all year at Prometric test sites. Two parts are from management accounting and two from financial accounting, and candidates can decide when they need to sit for the sections as long as they pass all four within 18 months.
Reviewing and Retaking is the Two to Six Month Plan of the Learning Cycle
This feature is especially useful if a candidate fails a particular section, because he or she can take it again or can study it further. Sometimes, this can mean that the contents have been reviewed or that consulting with the tutor is required.
Completing the Whole Process (3 to 18 Months)
Candidates can apply for CPA licenses when they have successfully passed all four exam parts. This may take several weeks to a few months, depending on the processing time of the particular state.
Licensure Process
After passing the CPA exam, candidates can begin the licensure process, which involves:
–Applying for the CPA License
The student has to file an application with his or her state board of accountancy accompanied by passing results of the CPA exam, transcript, and relevant experience. Application fees may apply.
–Anticipating a Meeting’s Background Check Needs
Some states have instituted closing scrutiny tests, fingerprint scans, and other integrity tests to ensure the applicant meets professional and public trust standards.
–Receiving the CPA License
After a satisfactory determination of compliance of the application with the known legal requirements, the CPA license will then be granted to the candidate. Processing time in the various states can take several weeks to a few months.
Reciprocity and Management Licenses
Some individuals with a legal CPA license in one region may be allowed to practice in another region through reciprocity. That means if they want to go elsewhere to get a permit, they can transfer their original license and don’t have to take a test or meet other requirements. The eligibility for reciprocity depends on the state, and candidates need to review the state rules where they want to practice.
