What Happens After I Pass the CPA Exam?
Passing the CPA Exam is a significant milestone in becoming a Certified Public Accountant, but it’s just one step in the licensing process. After passing the exam, candidates must fulfill additional state requirements, including education, work experience, and possibly an ethics exam. Each state has different licensing rules, so it’s essential to understand what comes next. This guide covers the key steps to obtaining your CPA license and advancing your career after passing the CPA exam.
After passing all four sections of the CPA Exam, the next step is to meet the licensing requirements for the state where you plan to work as a CPA. Like the exam, CPA license requirements vary by state and may include education and work experience.
Many states require at least one year of public accounting experience, while others accept different types of work, such as teaching, self-employment, or part-time jobs. Some states also have specific rules requiring a certain amount of auditing experience. If you live and work in the U.S., you must be licensed in your state. Many states offer mobility privileges, allowing CPAs to work across state lines, but these rules can be complex.
After passing the CPA exam, your next step may be taking a CPA Ethics Exam, depending on your state’s requirements. You must complete this step before getting licensed if your congratulatory letter mentions it. If not, your state may not require it.
Some states, like California, have their own ethics exam, while others use the AICPA’s Comprehensive Course and Exam. The good news is that most candidates find the ethics exam much easier than the CPA Exam, and many states allow it to be taken as an open-book test.
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In some states, candidates can sit for the CPA Exam with just 120 hours of higher education, but 150 hours are usually required to get licensed. Even if someone passes the CPA Exam with only 120 hours, they must complete the additional coursework later.
For example, in Alabama, candidates can take the exam with 120 hours, but they must finish the remaining 30 hours within 36 months to meet the licensing requirements. Understanding how to pass the CPA exam and what to do after passing the CPA exam is crucial to ensure a smooth path to licensure.
Depending on their state's requirements, candidates may need to gain 1 to 2 years of accounting experience after passing the CPA exam. Some states allow candidates to complete this experience before the exam, while others require it afterward as part of the licensing process.
After passing the CPA exam, the next step is to check state-specific experience rules. While some states only accept public accounting experience, most now recognize general accounting and taxation work. In most cases, a licensed CPA must supervise and verify the candidate’s experience so that it counts toward the license.
Candidates should generally wait until after passing the CPA exam to submit their license application to their state. Each state has a different timeline for obtaining a CPA license after the exam.
For example, in Minnesota, candidates have three years to meet all requirements and apply for licensure, while some states have no time limit. International candidates who take the CPA exam abroad must obtain their license within three years of passing it, or they will need to retake it. It's important to check specific state requirements to stay on track.
To become a Certified Public Accountant (CPA), candidates must meet education, work experience, and exam requirements.
After obtaining a state CPA license, candidates can apply for membership in the AICPA, the world's largest professional accounting organization. Membership allows CPAs to network with others and stay informed about important industry updates.
To maintain an active AICPA membership, CPAs must meet the organization’s CPE (Continuing Professional Education) requirements. In most cases, these requirements align with the state board of accountancy.
1. In-house training courses
2. Trade association conferences
3. College or university classes
AICPA members are automatically exempt if they:
Members may request a CPE waiver due to the following:
Passing the CPA Exam can open new job opportunities, increase earning potential, and provide excellent job stability and flexibility. This is the perfect time to update your resume.
However, it’s essential to list your CPA status correctly. You cannot call yourself a "CPA" until you receive your official license or permit. Instead, you can mention that you have passed the CPA Exam and are in the process of meeting the remaining requirements. Just make sure to state your current status clearly.
Earning your CPA license after passing the CPA exam requires completing state-specific requirements, including work experience, ethics exams, and additional education. Understanding your state’s licensing rules will help you stay on track. Once licensed, you can explore new job opportunities, apply for AICPA membership, and maintain your credentials through continuing education. By staying informed and proactive, you can maximize the benefits of becoming a CPA and build a successful career in accounting.
After passing the CPA exam, candidates should check their state’s licensing requirements, complete any remaining education or experience, and, if required, take the CPA Ethics Exam.
The time limit varies by state. Some states, like Minnesota, allow three years, while others have no deadline. International candidates typically have three years before needing to retake the exam.
Yes, most states require 1-2 years of relevant accounting experience, usually supervised by a licensed CPA. Some states allow candidates to gain experience before passing the exam, while others require it afterward.
Candidates cannot use the "CPA" title until they receive their official license. However, they can state that they have passed the CPA Exam and are completing the licensing requirements.
It depends on the state. Some states require a CPA Ethics Exam, which may be their own or the AICPA’s Comprehensive Ethics Course. Many states allow it to be taken as an open-book test.
Jason Dinesen (LPA, EA) is an entrepreneur, tax expert, and CPE Presenter. Dinesen brings over 15 years of experience helping individuals and businesses with accounting, bookkeeping, tax preparation, and business advisory in various industries. Dinesen is a regular CPE Presenter at MYCPE ONE. He has coached more than 200k+ accounting, taxes, and HR professionals on various topics of accounting, individual taxation, corporate taxation, and professional ethics. Jason has developed a strong following within the professional community for tax-related subjects. Dinesen is known for sharp tax interpretations, and he quickly brings his analysis of the latest tax updates and IRS guidance to the professional community.