By: The Capella University Editorial Team with Bradly E. Roh, PhD, DBA and Interim Dean and Vice President for the School of Business, Technology and Health Care Administration
Reading Time: 11 minutes
Certified Public Accountant (CPA) certification is a recognized credential in accounting, but the pathway to earning it and being able to use the title can sometimes be unclear.
Education requirements, exam expectations and state regulations all vary, which makes the process harder to navigate than it needs to be.
Part of the confusion comes from the fact that CPA certification and licensure are often used interchangeably. Understanding how the broader CPA pathway works can help you evaluate state-specific requirements and decide whether the credential aligns with your long-term goals.
Get clarity on how CPA licensure works, what to expect from the CPA exam and how the credential may connect to different accounting career paths.
A CPA is an accounting professional who has met rigorous standards across three areas: education, examination and supervised experience. The credential signals technical depth and ethical accountability. It tells clients, employers and regulators that the person holding it can handle complex financial work to a recognized professional standard.
CPAs work across audit and assurance, financial reporting, tax services and business advisory. Where someone focuses often depends on their interests, the industries they work in or the type of organization that hires them.
The credential is governed at the state level. Each state’s board of accountancy sets its own standards and coordinates with the National Association of State Boards of Accountancy (NASBA) to maintain consistency across jurisdictions.
Many people use the terms “CPA certification” and “CPA licensure” interchangeably, but they refer to different milestones in the process. Certification refers to passing the Uniform CPA Examination, the standardized, four-section test administered through the NASBA and the American Institute of Certified Public Accountants (AICPA).
Licensure, by contrast, is the legal authorization granted by a state board that allows you to practice as a CPA. In addition to passing the exam, candidates must typically meet state-specific standards related to education, work experience and ethics.
Only licensed CPAs can officially use the CPA title, sign audit reports or perform certain responsibilities that legally require the credential. That includes representing clients before the IRS in specific situations.
Understanding CPA licensure expectations early can make it easier to evaluate education pathways and prepare for state-specific requirements. While most states follow a similar framework for CPA licensure, the specifics can vary depending on where you plan to practice.
Many states require CPA candidates to complete 150 semester credit hours of postsecondary education from an accredited college or university. Because a typical bachelor’s degree usually includes around 120 credits, some students pursue additional coursework through graduate study or supplemental accounting classes.
A bachelor’s degree in accounting is one of the most common starting points for CPA candidates, although some states may also accept related business or finance degrees if specific accounting coursework is completed. Educational expectations often include foundational study in financial reporting, auditing, taxation and business-related topics.
Although CPA pathways are similar nationwide, the exact educational requirements can vary by state. Some jurisdictions may require additional upper-level accounting coursework, while others include residency, ethics or age-related criteria.
The NASBA CPA Exam resource page can help you review the expectations for your jurisdiction.
Before enrolling in any academic program with the intention of pursuing CPA licensure, it’s important to confirm that your coursework and credit hours align with your state board’s eligibility standards.
To qualify for CPA licensure in most states, candidates are generally expected to complete one to two years of supervised accounting experience. This experience is typically verified by a licensed CPA, who confirms that the work aligns with state board expectations.
Work experience requirements are designed to help candidates apply accounting knowledge in professional settings before pursuing full licensure. Because standards can vary across jurisdictions, it’s important to review the expectations established by your state board.
For an up-to-date breakdown of experience requirements for your jurisdiction, refer to NASBA’s licensing requirements page.
In addition to meeting education and work experience expectations, some states require candidates to complete the AICPA professional ethics course or a state-approved ethics exam or coursework before licensure. Certain jurisdictions may also include state-specific professional conduct examinations. For example, Texas requires candidates to pass the Texas Rules of Professional Conduct examination.
Ethics is treated as a formal requirement because CPAs are entrusted with sensitive financial information and expected to follow professional standards when working with clients, organizations and regulatory bodies. Failure to meet ethical standards can result in disciplinary action by a state board of accountancy.
You can find your state’s ethics standards and examination expectations through the NASBA’s licensing requirements resource.
The Uniform CPA Examination, developed by the AICPA and administered through Prometric testing centers, is a key step in the CPA licensure process. Before taking the exam, candidates must meet eligibility standards established by their state board of accountancy or NASBA. Once approved, they can register for and schedule the required exam sections.
The Uniform CPA Exam consists of three core sections and three discipline sections. Candidates must pass all three core sections and one discipline section for a total of four exam sections.
The core sections focus on foundational accounting knowledge and professional responsibilities:
The discipline sections allow candidates to explore a more specialized area of accounting practice:
This structure is designed to assess both broad accounting knowledge and more focused expertise aligned with different professional interests.
Each section of the CPA exam includes a mix of multiple-choice questions and task-based simulations to test your conceptual understanding and real-world application skills. Candidates must earn a minimum score of 75 to pass each section.
Once candidates pass the first section, they typically have an 18-month window to complete the remaining three sections.
Passing the CPA exam is a significant milestone, but licensure also includes additional experience and state-level eligibility steps. The next stage usually involves completing work experience requirements and applying for licensure through a state board of accountancy.
The process for CPA licensure involves four key pillars: education, examination, work experience and ongoing professional development. Here’s how each step fits together.
CPA candidates start by earning a bachelor’s degree in accounting or another business-related field while completing the credit hours required by their state board. Because educational standards vary across jurisdictions, some candidates may also need additional accounting coursework before becoming eligible for the CPA exam.
After meeting those educational expectations, candidates apply for the Uniform CPA Examination through their state board of accountancy or NASBA. The application process usually includes transcript reviews, eligibility verification and examination fees.
Once approved, candidates can schedule their first exam section, but all four sections must generally be completed within the 18-month testing window.
Preparing for the CPA exam often involves extended study, practice questions and a structured CPA certification course or review program. These resources help candidates strengthen their grasp of accounting concepts and build familiarity with exam formats.
After passing the exam, candidates typically complete supervised accounting experience before qualifying for full licensure. This stage is designed to help aspiring CPAs apply accounting knowledge in professional environments while working under the guidance of a licensed CPA.
The final step is applying for licensure through your state board of accountancy. Candidates generally submit documentation verifying their education, exam completion and work experience before paying any required licensing or processing fees.
Earning your CPA license is a significant milestone, but maintaining licensure also requires ongoing professional education. Most states require CPAs to complete Continuing Professional Education (CPE) hours each renewal cycle, typically around 40 hours per year, covering topics such as accounting standards, tax law and ethics.
Keeping up with your CPE requirements shows your commitment to professional growth and ensures your license stays active.
The requirements to qualify for and pursue CPA licensure vary by state. Capella University cannot guarantee licensure. Candidates should consult their state board of accountancy for the most current eligibility and licensing information.
A CPA credential can support career paths across accounting, finance and business operations. While many people associate CPAs with tax preparation, the credential may also be relevant in areas such as auditing, advisory services, financial analysis and investigative accounting.
Public accounting is one of the most established career areas associated with CPA licensure. Professionals in this field may work with external clients on auditing, tax planning and financial review services.
CPAs in public accounting often help organizations prepare financial documentation, navigate reporting expectations and maintain compliance with accounting standards. Common work settings include accounting services firms and offices of certified public accountants.
In corporate accounting and finance, CPAs work within businesses to support daily financial activities and help organizations understand their financial position over time. Depending on the role, they may review financial data, contribute to internal reporting processes or help leadership evaluate business performance and planning decisions.
If you’re more interested in the finance side of business, Capella also offers an online bachelor’s in business, finance specialization focused on how organizations manage investments, evaluate financial decisions and plan for long-term financial goals.
Forensic accounting combines accounting expertise with investigative work. CPAs in this area may examine financial records to better understand suspicious activity, disputes or situations involving potential fraud. They often work with legal teams or regulatory agencies to interpret complex financial data.
Government and nonprofit accounting focuses on how public and mission-driven organizations manage financial resources. CPAs in these settings may oversee budgeting processes or support transparency in publicly funded programs.
CPAs in advisory and consulting positions help organizations improve their financial performance and navigate business challenges. This can involve financial strategy, operational analysis and risk management support.
Career opportunities associated with CPA licensure vary by employer, industry, geographic location and individual experience. Capella cannot guarantee CPA licensure, employment or specific career outcomes.
The CPA credential is one of several professional pathways available within accounting and finance. Depending on your career aspirations, another certification may actually be a better fit.
The comparison below highlights how the CPA differs from several other widely recognized accounting and finance credentials, along with the types of work each path commonly supports.
Credential |
Primary focus |
Common career paths |
Industry recognition |
Certified Public Accountant (CPA) |
Accounting, auditing, taxation |
Public accounting, corporate finance, consulting |
Broad accounting and finance recognition |
Certified Management Accountant (CMA) |
Management accounting |
Corporate finance, operations, budgeting |
Strong in corporate environments |
Certified Financial Analyst (CFA) |
Investments and financial analysis |
Investment banking, portfolio management |
Strong in investment and finance sectors |
Enrolled Agent (EA) |
Tax preparation and IRS representation |
Tax advisory, tax resolution services |
Specialized tax recognition |
The Certified Management Accountant (CMA) credential focuses on how organizations manage internal financial operations and evaluate business performance. Professionals pursuing the CMA pathway often work in areas connected to budgeting, cost management and organizational planning.
The CMA credential may appeal to professionals interested in corporate leadership or internal business strategy within private organizations.
The Chartered Financial Analyst (CFA) credential focuses on investment analysis and financial markets. It is commonly associated with fields such as portfolio management and investment banking, where professionals analyze investments and evaluate financial assets.
Compared with the CPA pathway, the CFA credential is generally more specialized toward investment and financial analysis work.
The Enrolled Agent (EA) credential focuses specifically on taxation and IRS representation. EAs are authorized to represent taxpayers before the IRS and often work in tax preparation or tax advisory settings.
For professionals primarily interested in tax-focused work, the EA credential may offer a more specialized pathway with different education and licensure expectations than CPA licensure.
While the CPA credential is commonly associated with broader accounting, auditing and financial reporting responsibilities, credentials such as the CMA, CFA and EA focus more heavily on specific areas of finance, management accounting or taxation.
CPA licensure is commonly associated with advanced accounting knowledge and professional responsibility. The pathway toward licensure begins with building a strong educational foundation in accounting and acquiring the CPA certification.
Capella University offers an online bachelor’s in business, accounting degree designed to help students develop foundational knowledge in areas such as accounting principles and financial business operations. The program also includes multiple specialization options, allowing students to explore different areas of interest within the field.
This degree is available in the FlexPath format, which allows students to move through coursework at their own pace, as well as the GuidedPath format for a more structured approach. The program includes a capstone experience focused on applying accounting concepts in practical business scenarios.
Start your accounting journey. Explore our online BS in Business, Accounting degree.
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